CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023CHINA MERCHANTS PORT GROUP CO. LTD.FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
CONTENTS PAGE(S)
AUDITOR'S REPORT 1 - 6
CONSOLIDATED BALANCE SHEET 7 - 8
BALANCE SHEET OF THE COMPANY 9 - 10
CONSOLIDATED INCOME STATEMENT 11
INCOME STATEMENT OF THE COMPANY 12
CONSOLIDATED CASH FLOW STATEMENT 13
CASH FLOW STATEMENT OF THE COMPANY 14
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 15 - 16
THE COMPANY'S STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 17 - 18
NOTES TO THE FINANCIAL STATEMENTS 19 - 189AUDITOR'S REPORT
De Shi Bao (Shen) Zi (24) No. P03112
(Page 1 of 6)
To all the shareholders of China Merchants Port Group Co. Ltd.I. Audit Opinion
We have audited the financial statements of China Merchants Port Group Co. Ltd. (hereinafter referred
to as "the Company") which comprise the consolidated and Company's balance sheets as at 31
December 2023 and the consolidated and Company's income statements the consolidated and
Company's cash flow statements and the consolidated and Company's statements of changes in
shareholders' equity for the year then ended and the notes to the financial statements.In our opinion the accompanying financial statements of the Company are prepared and present fairly
in all material respects the consolidated and Company's financial position as at 31 December 2023 and
the consolidated and Company's results of operations and cash flows for the year then ended in
accordance with the Accounting Standards for Business Enterprises.II. Basis for the Opinion
We conducted our audit in accordance with China Standards on Auditing. Our responsibilities under
those standards are further described in the Auditor's Responsibilities for the Audit of the Financial
Statements section of our report. We are independent of the Company in accordance with China Code
of Ethics for Certified Public Accountants and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.III. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our
audit of the financial statements of the current year. These matters were addressed in the context of our
audit of the financial statements as a whole and in forming our opinion thereon we do not provide a
separate opinion on these matters. We determine the followings are key audit matters that need to be
addressed in our report.
1. Subsequent measurement of long-term equity investments in associates
As disclosed in Note (VIII) 12 to the consolidated financial statements as at 31 December 2023 the
carrying amount of the Company's long-term equity investments in associates amounts to RMB
87708124441.05 accounting for 69.85% of the total shareholder's equity. In 2023 the investment
income from associates recognized under the equity method amounts to RMB 5582402904.90
accounting for 74.48% of the consolidated net profit. Since the amount of income from investments in
associates recognized by the Company for the year is significant and its correctness depends on the
financial status and operating results of the investee we determine the above-mentioned subsequent
measurement of the long-term equity investments in associates as a key audit matter of the consolidated
financial statements.- 1 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 2 of 6)
III. Key Audit Matters - continued
1. Subsequent measurement of long-term equity investments in associates - continued
Principal audit procedures we performed for the above key audit matter are as follows:
(1) Understood the certified public accountants of major associates and evaluated their independence
and professional competence;
(2) Identified and assessed the risk of material misstatement in the financial statements of the major
associates from the perspective of auditing the consolidated financial statements of the Company
by reading the financial statements of the major associates and discussing with the management
about the financial performance of the major associates and the significant judgments and
estimates made in the preparation of the financial statements;
(3) Discussed with the component certified public accountants of the major associates about their
assessment of the component audit risk the identification of key audit areas and the
implementation of the corresponding audit procedures to evaluate whether the audit of the
component certified public accountants was appropriate;
(4) Verified whether the accounting policies and accounting periods adopted by the major associates
were consistent with those of the Company. If not checked whether the financial statements of
the major associates have been adjusted according to the accounting policies and accounting
periods of the Company and recognized the amount of investment income under equity method
on that basis.
2. Goodwill impairment
As disclosed in Note (VIII) 20 to the consolidated financial statements as at 31 December 2023 the
goodwill presented in the consolidated financial statements of the Company is RMB 6493002246.44.The management of the Company uses the net amount of fair value less costs of disposal or the present
value of the estimated future cash flows to determine the recoverable amount of the relevant asset group
when testing the goodwill for impairment of which the fair value assessment is based on the market
approach and the forecast of future cash flows and the calculation of the present value include key
assumptions such as growth rate and discount rate. We determine goodwill impairment as a key audit
matter of the consolidated financial statements due to the significant amount of goodwill and that the
management needs to make significant judgments and estimates when conducting goodwill impairment
testing.- 2 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 3 of 6)
III. Key Audit Matters - continued
2. Goodwill impairment - continued
Principal audit procedures we performed for the above key audit matter are as follows:
(1) Assessed the reasonableness of the division of asset group and combination of asset group made
by the management;
(2) Referred to the industry practice to assess whether the management's approach in cash flow
forecast was appropriate and whether the assumptions used were reasonable;
(3) Compared the data used in cash flow forecast with historical data and budget data approved by
the management and assessed the reasonableness of the data used;
(4) Compared the growth rate of the business volume in the forecast period with the growth rate of
the historical business volume and evaluated its reasonableness;
(5) Understood the basis adopted by the management to determine the growth rate of the business in
the subsequent forecast period and assessed its reasonableness;
(6) Assessed the reasonableness of the discount rate adopted by the management in combination with
market risk-free interest rates risk factors etc.;
(7) Used the work of internal evaluation experts to evaluate the appropriateness of the management's
method to assess the recoverable amount of the asset group and evaluate the reasonableness of
the discount rate used by the management in predicting the present value of cash flows and the
growth rate of the subsequent forecast period;
(8) Reviewed whether the calculation of the present value of future cash flows was correct;
(9) Assessed whether the method used to determine the fair value less costs of disposal was
appropriate;
(10) Assessed the adequacy and appropriateness of the disclosure of goodwill impairment testing.
IV. Other Information
The management of the Company is responsible for the other information. The other information
comprises the information included in the 2023 annual report but does not include the consolidated
financial statements and our auditor's report.Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion.- 3 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 4 of 6)
IV. Other Information - continued
In combination with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.If based on the audit work performed we conclude that there is a material misstatement of this other
information we are required to report that fact. We have nothing to report in this regard.V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
The management of the Company is responsible for the preparation of the financial statements that give
a true and fair view in accordance with Accounting Standards for Business Enterprises and for the
design performance and maintenance of such internal control that is necessary to enable that the
preparation of financial statements are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company's ability
to continue as a going concern disclosing as applicable matters related to going concern and using the
going concern basis of accounting unless the management either intends to liquidate the Company or to
cease operations or has no realistic alternative but to do so.These charged with governance are responsible for overseeing the Company's financial reporting
process.VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements are free from
material misstatement whether due to fraud or error and to issue an auditor's report that includes an
audit opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit
conducted in accordance with China Standards on Auditing will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if individually
or in the aggregate they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.- 4 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 5 of 6)
VI. Auditor's Responsibilities for the Audit of the Financial Statements - continued
As part of an audit in accordance with China Standards on Auditing we exercise professional judgment
and maintain professional skepticism throughout the audit. We also:
(1) Identified and assessed the risks of material misstatement of the financial statements whether due
to fraud or error designed and performed audit procedures responsive to those risks and obtained
audit evidence that was sufficient and appropriate to form our opinion. The risk of not detecting
a material misstatement resulting from fraud was higher than for one resulting from error as fraud
may involve collusion forgery intentional omissions misrepresentations or the override of
internal control.
(2) Understood audit-related internal control in order to design audit procedures that were appropriate
in the circumstances.
(3) Evaluated the appropriateness of accounting policies applied and the reasonableness of
accounting estimates and related disclosures made by the management.
(4) Concluded on the appropriateness of the management' application of the going concern basis of
accounting. Based on audit evidence obtained concluded on whether the material uncertainty of
events or conditions that may cast significant doubt on the Company's ability to continue as a
going concern existed. If we concluded that a material uncertainty existed we were required to
draw attention in our auditor's report to the related disclosures in the financial statements or to
modify our opinion if such disclosures were inadequate. Our conclusions were based on the audit
evidence obtained up to the date of our auditor's report. However future events or conditions may
cause the Company to cease to continue as a going concern.
(5) Evaluated the overall presentation (including the disclosures) structure and content of the
financial statements and whether the financial statements represented the underlying transactions
and events in a manner that achieved fair presentation.
(6) Obtained sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Company to express an opinion on the financial statements. We
were responsible for the direction supervision and performance of the group audit. We remained
solely responsible for our audit opinion.We communicated with those charged with governance regarding among other matters the planned
scope and timing of the audit and significant audit findings including any significant deficiencies in
internal control that we identified during our audit.We also provided those charged with governance with a statement that we had complied with relevant
ethical requirements of independence and communicated with those charged with governance over all
relationships and other matters that may reasonably be thought to bear on our independence and where
applicable related safeguards.- 5 -AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (24) No. P03112
(Page 6 of 6)
VI. Auditor's Responsibilities for the Audit of the Financial Statements - continued
From the matters communicated with those charged with governance we determined those matters that
were of most significance in the audit of the financial statements of the current year and were therefore
the key audit matters. We described these matters in our auditor's report unless law or regulation
precluded public disclosure about the matter or when in extremely rare circumstances we determined
that a matter should not be addressed in our report because the adverse consequences of doing so would
reasonably be expected to outweigh the public interest benefits of such communication.Deloitte Touche Tohmatsu CPA LLP Chinese Certified Public Accountant
(Engagement Partner)
Shanghai China
Li Weihua
Chinese Certified Public Accountant
Wang Hongmei
29 March 2024
The auditor's report and the accompanying financial statements are English translations of the Chinese auditor's report and
statutory financial statements prepared under accounting principles and practices generally accepted in the People's
Republic of China. These financial statements are not intended to present the financial position and results of operations
and cash flows in accordance with accounting principles and practices generally accepted in other countries and
jurisdictions. In case the English version does not conform to the Chinese version the Chinese version prevails.- 6 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 31 DECEMBER 2023
Consolidated Balance Sheet
RMB
31/12/2022
Item Notes 31/12/2023
(Restated)
Current Assets:
Cash and bank balances (VIII)1 16079646178.24 13615928739.40
Held-for-trading financial assets (VIII)2 4568806108.84 2998781599.63
Notes receivable (VIII)3 325150195.09 36395000.00
Accounts receivable (VIII)4 1103901466.25 1276149689.44
Receivables financing (VIII)5 2001669.46 163766913.10
Prepayments (VIII)6 37664552.30 63627425.42
Other receivables (VIII)7 940014994.01 948842094.30
Including: Interest receivable (VIII)7 - -
Dividends receivable (VIII)7 343386866.06 416040485.62
Inventories (VIII)8 218898192.87 225122821.48
Non-current assets due within one year (VIII)9 17451380.98 902225293.93
Other current assets (VIII)10 189673500.87 185903140.53
Total current assets 23483208238.91 20416742717.23
Non-current Assets:
Long-term receivables (VIII)11 3856466116.99 5661327499.07
Long-term equity investments (VIII)12 96666117776.27 92364293919.05
Investments in other equity instruments (VIII)13 157461648.16 171945275.02
Other non-current financial assets (VIII)14 877576442.83 1745740896.41
Investment properties (VIII)15 4958374968.79 5123690119.56
Fixed assets (VIII)16 28986538326.35 32033326083.50
Including: Fixed assets - cost 51987700820.76 55185206442.91
Accumulated depreciation 22787694400.09 23088313866.49
Provision for impairment of fixed assets 213504483.08 63574868.76
Construction in progress (VIII)17 2909817281.46 2413844407.64
Right-of-use assets (VIII)18 9441668311.22 9342642222.33
Intangible assets (VIII)19 18073062184.72 19277065115.61
Development expenditure (IX)2 50990153.18 17412196.16
Goodwill (VIII)20 6493002246.44 6411426891.09
Long-term prepaid expenses (VIII)21 993793505.29 986356904.90
Deferred tax assets (VIII)22 415063477.03 434498820.95
Other non-current assets (VIII)23 1194155989.62 1186789378.79
Total non-current assets 175074088428.35 177170359730.08
TOTAL ASSETS 198557296667.26 197587102447.31
- 7 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 31 DECEMBER 2023
Consolidated Balance Sheet - continued
RMB
31/12/2022
Item Notes 31/12/2023
(Restated)
Current liabilities:
Short-term borrowings (VIII)24 15714045288.97 7164338366.18
Notes payable (VIII)25 73461165.82 -
Accounts payable (VIII)26 691765137.25 811149397.66
Receipts in advance (VIII)27 17387537.36 9886531.59
Contract liabilities (VIII)28 142080101.00 141899551.03
Employee benefits payable (VIII)29 917964606.65 936834718.13
Including: Payroll payable 883913277.13 897442262.83
Welfare payable - -
Taxes payable (VIII)30 923053572.50 917933169.09
Other payables (VIII)31 1654622170.02 1755885258.26
Including: Interest payable (VIII)31 - -
Dividends payable (VIII)31 111897214.27 92374921.29
Non-current liabilities due within one year (VIII)32 6817404289.25 11641223688.95
Other current liabilities (VIII)33 2143842534.53 3161147525.96
Total current liabilities 29095626403.35 26540298206.85
Non-current Liabilities:
Long-term borrowings (VIII)34 18227543954.71 12390099177.85
Bonds payable (VIII)35 14287508564.15 19088293099.02
Including: Preferred shares - -
Perpetual bonds - -
Lease liabilities (VIII)36 1001172206.92 948350914.04
Long-term payables (VIII)37 3822862202.17 3551315590.31
Long-term employee benefits payable (VIII)38 603009921.91 639095931.43
Provisions (VIII)39 85590059.41 35365156.43
Deferred income (VIII)40 1024776557.73 1031273189.74
Deferred tax liabilities (VIII)22 4659638104.37 4855019835.33
Other non-current liabilities (VIII)41 179634263.73 186383117.00
Total non-current liabilities 43891735835.10 42725196011.15
TOTAL LIABILITIES 72987362238.45 69265494218.00
Shareholders' equity:
Share capital (VIII)42 2499074661.00 2499074661.00
Including: State capital - -
State-owned corporate capital 2264090797.00 2283118870.00
Collective capital - -
Private capital 218857094.00 195001566.00
Foreign capital 16126770.00 20954225.00
Capital reserve (VIII)43 37076846803.06 34751640835.25
Other comprehensive income (VIII)44 -903626594.35 -689553619.86
Special reserve (VIII)45 34003994.41 26358259.97
Surplus reserve (VIII)46 1095980563.68 1001917449.15
Unappropriated profit (VIII)47 19045313519.75 16701988301.14
Total equity attributable to shareholders of the Company 58847592947.55 54291425886.65
Minority interests 66722341481.26 74030182342.66
TOTAL SHAREHOLDERS' EQUITY 125569934428.81 128321608229.31
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 198557296667.26 197587102447.31
The accompanying notes form part of the financial statements.The financial statements were signed by the following:
________X__u_ S__o_n_g_ _______ _______T_u_ _X_i_a_o_p_in_g_ ______ __________H_u_ _S_h_a_o_d_e _ ________
Legal Representative Chief Financial Officer Head of Accounting Department
- 8 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 31 DECEMBER 2023
Balance Sheet of the Company
RMB
Item Notes 31/12/2023 31/12/2022
Current Assets:
Cash and bank balances 3281038218.84 3333936587.44
Held-for-trading financial assets 1500517808.22 1502601369.86
Prepayments 10075055.61 -
Other receivables (XX)1 1742461670.32 2749637755.23
Including: Interest receivable (XX)1 - -
Dividends receivable (XX)1 167092526.14 147896763.88
Other current assets 10882675.96 7774206.30
Total current assets 6544975428.95 7593949918.83
Non-current Assets:
Long-term receivables 9391615.50 9240200.34
Long-term equity investments (XX)2 55168618338.79 53433613471.49
Investments in other equity instruments 148088364.25 144700378.28
Other non-current financial assets - 950321309.06
Fixed assets 27343639.28 28826135.19
Including: Fixed assets - cost 32478382.04 31811887.38
Accumulated depreciation 5134742.76 2985752.19
Provision for impairment of fixed assets - -
Construction in progress 607774.34 15435512.32
Intangible assets 54876218.77 50303126.12
Development expenditure 38923289.23 6219670.14
Long-term prepaid expenses 665319.42 873700.49
Deferred tax assets 928465.21 928465.21
Total non-current assets 55449443024.79 54640461968.64
TOTAL ASSETS 61994418453.74 62234411887.47
- 9 -CHINA MERCHANTS PORT GROUP CO. LTD.AT 31 DECEMBER 2023
Balance Sheet of the Company - continued
RMB
Item Notes 31/12/2023 31/12/2022
Current Liabilities:
Receipts in advance 5358074.44 -
Employee benefits payable 45188572.96 38763907.88
Including: Payroll payable 45032983.18 38672237.18
Welfare payable - -
Taxes payable 1046270.66 1251923.17
Other payables 376323201.93 373569651.65
Including: Interest payable - -
Dividends payable 34577578.12 34577578.12
Non-current liabilities due within one year 5119243623.45 2146233151.54
Other current liabilities 2007190136.98 3017713424.64
Total current liabilities 7554349880.42 5577532058.88
Non-current Liabilities:
Long-term borrowings 7979000000.00 4988000000.00
Bonds payable 3000000000.00 8000000000.00
Deferred tax liabilities 41948362.13 41622256.05
Total non-current liabilities 11020948362.13 13029622256.05
TOTAL LIABILITIES 18575298242.55 18607154314.93
SHAREHOLDERS' EQUITY
Share capital 2499074661.00 2499074661.00
Including: State capital - -
State-owned corporate capital 2264090797.00 2283118870.00
Collective capital - -
Private capital 218857094.00 195001566.00
Foreign capital 16126770.00 20954225.00
Capital reserve 37704543586.11 37749723642.07
Other comprehensive income 120520832.83 99525686.03
Surplus reserve 1095980563.68 1001917449.15
Unappropriated profit 1999000567.57 2277016134.29
TOTAL SHAREHOLDERS' EQUITY 43419120211.19 43627257572.54
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 61994418453.74 62234411887.47
The accompanying notes form part of the financial statements.- 10 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Consolidated Income Statement
RMB
2022
Item Notes 2023
(Restated)
I. Total operating income (VIII)48 15750475780.22 16230489127.55
Less: Operating costs (VIII)48 9318186707.75 9650461712.94
Taxes and surcharges (VIII)49 312998026.19 282249473.46
Administrative expenses (VIII)50 1776641155.38 1765094736.51
Research and development expenses (VIII)51 223739072.07 287706178.70
Financial expenses (VIII)52 1839113328.14 2258713672.42
Including: Interest expenses 2238152796.66 2225162805.79
Interest income 497593921.36 469834098.05
Net exchange loss 85519920.28 477004284.27
Add: Other income (VIII)53 224389260.77 241648070.42
Investment income (VIII)54 6348676940.80 7377655506.33
Including: Income from investments in associates
(VIII)54 5979007585.96 7185182148.75
and joint ventures
Gains (Losses) from changes in fair value (Losses are marked
(VIII)55 73352800.52 -129033650.11
with "-")
Gains (Losses) from impairment of credit (Losses are marked
(VIII)56 37284041.18 -223473576.55
with "-")
Losses from impairment of assets (Losses are marked with "-") (VIII)57 -191297311.28 -22159020.20
Gains from disposal of assets (VIII)58 36759532.61 55130095.52
II. Operating profit 8808962755.29 9286030778.93
Add: Non-operating income (VIII)59 87302024.12 279274452.77
Including: Government grants - 1640553.77
Less: Non-operating expenses (VIII)60 97072840.72 220442254.68
III. Gross profit 8799191938.69 9344862977.02
Less: Income tax expenses (VIII)63 1303579852.93 1112959676.75
IV. Net profit 7495612085.76 8231903300.27
(I) Categorized by continuity of operation
1. Net profit from continuing operation 7495612085.76 8231903300.27
2. Net profit from discontinued operation - -
(II) Categorized by attribution of ownership
1. Net profit attributable to shareholders of the Company 3571800762.16 3338693816.70
2. Profit or loss attributable to minority shareholders 3923811323.60 4893209483.57
V. Other comprehensive income net of tax (VIII)66 209856768.77 1628631938.02
(I) Other comprehensive income attributable to shareholders of
-214072974.49208085368.23
the Company net of tax
1. Other comprehensive income that will not be reclassified to
-73874071.89-22706023.29
profit or loss
(1) Changes from remeasurement of the defined benefit plan 7480103.34 -12793128.73
(2) Other comprehensive income that cannot be reclassified to
-83841725.07-11550762.02
profit or loss under the equity method
(3) Changes in fair value of investments in other equity
2487549.841637867.46
instruments
2. Other comprehensive income that will be reclassified
-140198902.60230791391.52
subsequently to profit or loss
(1) Other comprehensive income that can be reclassified to profit
-366028318.84-110193707.53
or loss under the equity method
(2) Translation differences of financial statements denominated
225829416.24340985099.05
in foreign currencies
(II) Other comprehensive income attributable to minority interests
423929743.261420546569.79
net of tax
VI. Total comprehensive income attributable to: 7705468854.53 9860535238.29
(I) Shareholders of the Company 3357727787.67 3546779184.93
(II) Minority shareholders 4347741066.86 6313756053.36
VII. Earnings per share
(I) Basic earnings per share (Yuan/share) 1.43 1.61
(II) Diluted earnings per share (Yuan/share) 1.43 1.61
The accompanying notes form part of the financial statements.- 11 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Income Statement of the Company
RMB
Item Notes 2023 2022
I. Operating income (XX)3 17326885.29 3669891.36
Less: Operating costs (XX)3 3686411.84 2276202.60
Taxes and surcharges 2161621.42 1126365.82
Administrative expenses 167273393.24 154023617.71
Research and development expenses 14046526.98 15151413.80
Financial expenses 397006521.97 361633510.16
Including: Interest expenses 482413617.32 491933634.55
Interest income 89862634.06 144120475.54
Net exchange loss 2296890.14 3785346.40
Add: Other income 206131.06 499438.35
Investment income (XX)4 1597599935.27 1053614451.09
Including: Income from investments in associates
(XX)4 1111522805.93 384257363.02
and joint ventures
Losses from changes in fair value (Losses are marked with
-48217517.53-125383212.19
"-")
Losses from impairment of assets (Losses are marked with
-43605014.00-
"-")
Gains from disposal of assets - 237727.99
II. Operating profit 939135944.64 398427186.51
Add: Non-operating income 18698.11 545089.04
Less: Non-operating expenses 104998.04 18.84
III. Gross profit 939049644.71 398972256.71
Less: Income tax expenses -1581500.55 -8376614.77
IV. Net profit 940631145.26 407348871.48
V. Other comprehensive income net of tax 20995146.80 1625433.48
(I) Other comprehensive income that cannot be reclassified
3661309.411391486.75
to profit or loss
1. Changes from remeasurement of the defined benefit plan - -
2. Other comprehensive income that cannot be reclassified to
1120319.9327649.59
profit or loss under the equity method
3. Changes in fair value of investments in other equity
2540989.481363837.16
instruments
(II) Other comprehensive income that will be reclassified to
17333837.39233946.73
profit or loss
1. Other comprehensive income that can be reclassified
17333837.39233946.73
to profit or loss under the equity method
2. Translation differences of financial statements denominated
--
in foreign currencies
VI. Total comprehensive income 961626292.06 408974304.96
The accompanying notes form part of the financial statements.- 12 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Consolidated Cash Flow Statement
RMB
Item Notes 2023 2022
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 16019658434.90 16547850742.82
Receipts of tax refunds 53272648.95 239426543.45
Other cash receipts relating to operating activities (VIII) 67(1) 927564019.09 1141794925.33
Sub-total of cash inflows 17000495102.94 17929072211.60
Cash payments for goods purchased and services received 4550256851.25 4790513865.61
Cash payments to and on behalf of employees 3598624870.64 3612535626.78
Payments of various types of taxes 1418779686.67 1579320175.46
Other cash payments relating to operating activities (VIII) 67(1) 853227059.21 1026325153.40
Sub-total of cash outflows 10420888467.77 11008694821.25
Net Cash Flows from Operating Activities (VIII) 68(1) 6579606635.17 6920377390.35
II. Cash Flows from Investing Activities:
Cash receipts from disposal and recovery of investments 28430740038.14 40894899081.53
Cash receipts from investments income 2329944728.79 2429981136.20
Net cash receipts from disposal of fixed assets intangible assets
144845803.8613812483.21
and other long-term assets
Net cash receipts from disposals of subsidiaries and
(VIII) 68(3) 1683385533.43 -
other business units
Other cash receipts relating to investing activities (VIII) 67(2) 3164955303.27 295064509.34
Sub-total of cash inflows 35753871407.49 43633757210.28
Cash payments to acquire or construct fixed assets intangible
1929374936.212133837244.47
assets and other long-term assets
Cash payments to acquire investments 29974648554.87 54509066114.35
Other cash payments relating to investing activities (VIII) 67(2) 82663303.33 954802482.30
Sub-total of cash outflows 31986686794.41 57597705841.12
Net Cash Flows from Investing Activities 3767184613.08 -13963948630.84
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions 217520934.61 10642126434.50
Including: Cash receipts from capital contributions from
217520934.61-
minority shareholders of subsidiaries
Cash receipts from borrowings 29416872247.55 29859438534.05
Cash receipts from issue of bonds 6000000000.00 19248308650.00
Other cash receipts relating to financing activities (VIII) 67(3) 334754229.63 56303169.80
Sub-total of cash inflows 35969147411.79 59806176788.35
Cash repayments of borrowings 31919051211.87 46432911425.29
Cash payments for distribution of dividends or profits or
5167695546.014732910153.42
settlement of interest expenses
Including: Payments for distribution of dividends or profits to
1955677172.681900086012.38
minority shareholders of subsidiaries
Other cash payments relating to financing activities (VIII) 67(3) 6867093830.32 1124116740.35
Sub-total of cash outflows 43953840588.20 52289938319.06
Net Cash Flows from Financing Activities -7984693176.41 7516238469.29
IV. Effect of Foreign Exchange Rate Changes on Cash
89206087.64367287004.46
and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents 2451304159.48 839954233.26
Add: Opening balance of cash and cash equivalents (VIII) 68(2) 13567309471.62 12727355238.36
VI. Closing Balance of Cash and Cash Equivalents (VIII) 68(2) 16018613631.10 13567309471.62
The accompanying notes form part of the financial statements.- 13 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Cash Flow Statement of the Company
RMB
Item Notes 2023 2022
I. Cash Flows from Operating Activities:
Other cash receipts relating to operating activities 205894785.22 108295282.75
Sub-total of cash inflows 205894785.22 108295282.75
Cash payments for goods purchased and services received 142500.00 86280.54
Cash payments to and on behalf of employees 111864640.42 102305409.21
Payments of various types of taxes 2203522.03 162077694.07
Other cash payments relating to operating activities 197101786.33 64738420.24
Sub-total of cash outflows 311312448.78 329207804.06
Net Cash Flows from Operating Activities -105417663.56 -220912521.31
II. Cash Flows from Investing Activities:
Cash receipts from disposal and recovery of investments 11200000000.00 33317450238.74
Cash receipts from investment income 934979575.11 770719728.64
Net cash receipts from disposal of fixed assets intangible assets
-1002668.00
and other long-term assets
Other cash receipts relating to investing activities 1948842841.79 50285632.68
Sub-total of cash inflows 14083822416.90 34139458268.06
Cash payments to acquire or construct fixed assets intangible
23594300.6942642426.69
assets and other long-term assets
Cash payments to acquire investments 11589128994.69 45942721212.13
Other cash payments relating to investing activities 890011664.40 1523809248.36
Sub-total of cash outflows 12502734959.78 47509172887.18
Net Cash Flows from Investing Activities 1581087457.12 -13369714619.12
III. Cash Flows from Financing Activities:
Cash receipts from capital contributions - 10642126434.50
Cash receipts from borrowings 6250000000.00 9171668674.85
Cash receipts from issue of bonds 6000000000.00 16000000000.00
Other cash receipts relating to financing activities 6728017.13 6303169.80
Sub-total of cash inflows 12256728017.13 35820098279.15
Cash repayments of borrowings 12125000000.00 20529408504.85
Cash payments for distribution of dividends or profits or
1650693345.101257422374.13
settlement of interest expenses
Other cash payments relating to financing activities 9832313.92 23179821.90
Sub-total of cash outflows 13785525659.02 21810010700.88
Net Cash Flows from Financing Activities -1528797641.89 14010087578.27
IV. Effect of Foreign Exchange Rate Changes on Cash
176979.73714582.29
and Cash Equivalents
V. Net (Decrease) Increase in Cash and Cash Equivalents
-52950868.60420175020.13
(Losses are marked with "-")
Add: Opening balance of cash and cash equivalents 3333936587.44 2913761567.31
VI. Closing Balance of Cash and Cash Equivalents 3280985718.84 3333936587.44
The accompanying notes form part of the financial statements.- 14 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Consolidated Statement of Changes in Shareholders' Equity
RMB
2023
Equity attributable to shareholders of the Company
Item
Including:
Other Minority interests Total shareholders'
Foreign currency Unappropriated
Share capital Capital reserve comprehensive Special reserve Surplus reserve equity
conversion profit
income
difference
I. Closing balance of the preceding year 2499074661.00 34751640835.25 -691536248.44 -681788363.07 26358259.97 1001917449.15 16679688347.09 73994641893.21 128261785197.23
Add: Changes in accounting policies - - 1982628.58 1982628.58 - - 22299954.05 35540449.45 59823032.08
Corrections of prior period errors - - - - - - - - -
Business combination involving -
--------
enterprises under common control
Others - - - - - - - - -
II. Opening balance of the year 2499074661.00 34751640835.25 -689553619.86 -679805734.49 26358259.97 1001917449.15 16701988301.14 74030182342.66 128321608229.31
III. Changes for the year - 2325205967.81 -214072974.49 225829416.24 7645734.44 94063114.53 2343325218.61 -7307840861.40 -2751673800.50
(I) Total comprehensive income - - -214072974.49 225829416.24 - - 3571800762.16 4347741066.86 7705468854.53
(II) Owners' contributions and reduction in
-2325205967.81---317684.31--1883909.97-9190432492.89-6867428119.36
capital
1. Ordinary shares contributed by
-------685424826.14685424826.14
owners
2. Capital contribution from holders of
--------4222148460.84-4222148460.84
other equity instruments
3. Share-based payment recognized in
-1053188.36-----523302.321576490.68
shareholders' equity
4. Others - 2324152779.45 - - -317684.31 - -1883909.97 -5654232160.51 -3332280975.34
(III) Profit distribution - - - - - 94063114.53 -1226591633.58 -2477802768.49 -3610331287.54
1. Transfer to surplus reserve - - - - - 94063114.53 -94063114.53 - -
2. Distribution to shareholders - - - - - - -1124583597.45 -2256143657.02 -3380727254.47
3. Others - - - - - - -7944921.60 -221659111.47 -229604033.07
(IV) Transfers within shareholders' equity - - - - - - - - -
1. Capitalization of capital reserve - - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - - -
3. Loss offset by surplus reserve - - - - - - - - -
4. Retained earnings carried forward
---------
from other comprehensive income
5. Others - - - - - - - - -
(V) Special reserve - - - - 7963418.75 - - 12653333.12 20616751.87
1. Transfer to special reserve in the
----61589514.21--66309179.08127898693.29
year
2. Amount utilized in the year - - - - -53626095.46 - - -53655845.96 -107281941.42
(VI) Others - - - - - - - - -
IV. Closing balance of the year 2499074661.00 37076846803.06 -903626594.35 -453976318.25 34003994.41 1095980563.68 19045313519.75 66722341481.26 125569934428.81
- 15 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
Consolidated Statement of Changes in Shareholders' Equity - continued
RMB
2022 (Restated)
Equity attributable to shareholders of the Company
Including: Total
Item Other
Foreign currency Special Unappropriated Minority interests shareholders'
Share capital Capital reserve comprehensive Surplus reserve
conversion reserve profit equity
income
difference
I. Closing balance of the preceding year 1922365124.00 23592702758.70 -890125318.18 -1020790833.54 9184429.12 961182562.00 14205879106.49 71234238229.35 111035426891.48
Add: Changes in accounting policies - - - - - - 21052360.17 33445604.29 54497964.46
Corrections of prior period errors - - - - - - - - -
Business combination involving
enterprises under - - - - - - - - -
common control
Others - - - - - - - - -
II. Opening balance of the year 1922365124.00 23592702758.70 -890125318.18 -1020790833.54 9184429.12 961182562.00 14226931466.66 71267683833.64 111089924855.94
III. Changes for the year 576709537.00 11158938076.55 200571698.32 340985099.05 17173830.85 40734887.15 2475056834.48 2762498509.02 17231683373.37
(I) Total comprehensive income - - 208085368.23 340985099.05 - - 3338693816.70 6313756053.36 9860535238.29
(II) Owners' contributions and reduction
576709537.0011158938076.55------683588937.2611052058676.29
in capital
1. Ordinary shares contributed by
576709537.0010055823793.40-----971135730.3111603669060.71
owners
2. Capital contribution from holders
---------
of other equity instruments
3. Share-based payment recognized in
--4365536.60------3266354.51-7631891.11
shareholders' equity
4. Others - 1107479819.75 - - - - - -1651458313.06 -543978493.31
(III) Profit distribution - - - - - 40734887.15 -871150652.13 -2897141819.77 -3727557584.75
1. Transfer to surplus reserve - - - - - 40734887.15 -40734887.15 - -
2. Transfer to general risk reserve - - - - - - - - -
3. Distribution to shareholders - - - - - - -826617003.32 -2698588539.77 -3525205543.09
4. Others - - - - - - -3798761.66 -198553280.00 -202352041.66
(IV) Transfers within shareholders' equity - - -7513669.91 - - - 7513669.91 - -
1. Capitalization of capital reserve - - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - - -
3. Loss offset by surplus reserve - - - - - - - - -
4. Retained earnings carried forward
from other - - -7513669.91 - - - 7513669.91 - -
comprehensive income
5. Others - - - - - - - - -
(V) Special reserve - - - - 17173830.85 - - 29473212.69 46647043.54
1. Transfer to special reserve in the
----62696039.72--86478912.67149174952.39
year
-
2. Amount utilized in the year - - - - - - -57005699.98 -102527908.85
45522208.87
(VI) Others - - - - - - - - -
IV. Closing balance of the year 2499074661.00 34751640835.25 -689553619.86 -679805734.49 26358259.97 1001917449.15 16701988301.14 74030182342.66 128321608229.31
The accompanying notes form part of the financial statements.- 16 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
The Company's Statement of Changes in Shareholders' Equity
RMB
2023
Other
Item Unappropriated Total shareholders'
Share capital Capital reserve comprehensive Special reserve Surplus reserve
profit equity
income
I. Closing balance of the preceding year 2499074661.00 37749723642.07 99525686.03 - 1001917449.15 2277016134.29 43627257572.54
Add: Changes in accounting policies - - - - - - -
Corrections of prior period errors - - - - - - -
Others - - - - - - -
II. Opening balance of the year 2499074661.00 37749723642.07 99525686.03 - 1001917449.15 2277016134.29 43627257572.54
III. Changes for the year - -45180055.96 20995146.80 - 94063114.53 -278015566.72 -208137361.35
(I) Total comprehensive income - - 20995146.80 - - 940631145.26 961626292.06
(II) Owners' contributions and reduction in capital - -45180055.96 - - - - -45180055.96
1. Ordinary shares contributed by owners - - - - - - -
2. Share-based payment recognized in shareholders' equity - - - - - - -
3. Share-based payment recognized in owners' equity - 1890784.31 - - - - 1890784.31
4. Others - -47070840.27 - - - - -47070840.27
(III) Profit distribution - - - - 94063114.53 -1218646711.98 -1124583597.45
1. Transfer to surplus reserve - - - - 94063114.53 -94063114.53 -
2 Distribution to shareholders - - - - - -1124583597.45 -1124583597.45
3. Others - - - - - - -
(IV) Transfers within shareholders' equity - - - - - - -
1. Capitalization of capital reserve - - - - - - -
2. Capitalization of surplus reserve - - - - - - -
3. Loss offset by surplus reserve - - - - - - -
4. Retained earnings carried forward from other
-------
comprehensive income
5. Others - - - - - - -
(V) Special reserve - - - - - - -
1. Transfer to special reserve in the year - - - - - - -
2. Amount utilized in the year - - - - - - -
(VI) Others - - - - - - -
IV. Closing balance of the year 2499074661.00 37704543586.11 120520832.83 - 1095980563.68 1999000567.57 43419120211.19
- 17 -CHINA MERCHANTS PORT GROUP CO. LTD.FOR THE YEAR ENDED 31 DECEMBER 2023
The Company's Statement of Changes in Shareholders' Equity - continued
RMB
2022
Other
Item Unappropriated Total shareholders'
Share capital Capital reserve comprehensive Special reserve Surplus reserve
profit equity
income
I. Closing balance of the preceding year 1922365124.00 27594079596.13 105412294.52 - 961182562.00 2729507111.31 33312546687.96
Add: Changes in accounting policies - - - - - - -
Corrections of prior period errors - - - - - - -
Others - - - - - - -
II. Opening balance of the year 1922365124.00 27594079596.13 105412294.52 - 961182562.00 2729507111.31 33312546687.96
III. Changes for the year 576709537.00 10155644045.94 -5886608.49 - 40734887.15 -452490977.02 10314710884.58
(I) Total comprehensive income - - 1625433.48 - - 407348871.48 408974304.96
(II) Owners' contributions and reduction in capital 576709537.00 10155644045.94 - - - - 10732353582.94
1. Ordinary shares contributed by owners 576709537.00 10055823793.40 - - - - 10632533330.40
2. Share-based payment recognized in shareholders' equity - -6388558.75 - - - - -6388558.75
3. Others - 106208811.29 - - - - 106208811.29
(III) Profit distribution - - - - 40734887.15 -867351890.47 -826617003.32
1. Transfer to surplus reserve - - - - 40734887.15 -40734887.15 -
2. Transfer to general risk reserve - - - - - - -
3. Distribution to shareholders - - - - - -826617003.32 -826617003.32
4. Others - - - - - - -
(IV) Transfers within shareholders' equity - - -7512041.97 - - 7512041.97 -
1. Capitalization of capital reserve - - - - - - -
2. Capitalization of surplus reserve - - - - - - -
3. Loss offset by surplus reserve - - - - - - -
4. Retained earnings carried forward from other
---7512041.97--7512041.97-
comprehensive income
5. Others - - - - - - -
(V) Special reserve - - - - - - -
1. Transfer to special reserve in the year - - - - - - -
2. Amount utilized in the year - - - - - - -
(VI) Others - - - - - - -
IV. Closing balance of the year 2499074661.00 37749723642.07 99525686.03 - 1001917449.15 2277016134.29 43627257572.54
The accompanying notes form part of the financial statements.- 18 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(I) GENERAL INFORMATION OF THE COMPANY
China Merchants Port Group Co. Ltd. (hereinafter referred to as the "Company") is a stock limited
company incorporated in Shenzhen Guangdong Province on 16 January 1993.The headquarters of the Company is located in Shenzhen Guangdong Province. The Company and
its subsidiaries (collectively the "Group") are actually engaged in the principal operating activities
of port service bonded logistics service and other businesses such as property development and
investment.The Company's and consolidated financial statements were approved by the Board of Directors on
29 March 2024.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises ("ASBE") issued by the
Ministry of Finance ("MoF"). In addition the Group has disclosed relevant financial information
in accordance with Information Disclosure and Presentation Rules for Companies Offering
Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in 2023).Going concern
As at 31 December 2023 the Group had total current liabilities in excess of total current assets by
RMB 5612418164.44. As at 31 December 2023 the Group had available and unused line of credit
and bonds amounting to RMB 69439268355.68 which is greater than the balance of the net
current liabilities. The Group can obtain financial support from the available line of credit and bonds
when needed. Therefore the financial statements have been prepared on a going concern basis.(III) STATEMENT OF COMPLIANCE WITH THE ASBE
The financial statements of the Company have been prepared in accordance with ASBE and present
truly and completely the Company's and consolidated financial position as at 31 December 2023
and the Company's and consolidated results of operations and cash flows for the year then ended.(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Accounting year
The Group has adopted the calendar year as its accounting year e.g. from 1 January to 31 December.- 19 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
2. Operating cycle
An operating cycle refers to the period since when an enterprise purchases assets for processing
purpose till the realization of those assets in cash or cash equivalents. The Group is principally
engaged in the rendering of port service bonded logistics service and other businesses such as
property development and investment with one year being an operating cycle.
3. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company
and its domestic subsidiaries operate. Therefore the Company and its domestic subsidiaries choose
RMB as their functional currency. The Company's overseas subsidiaries choose their functional
currencies on the basis of the primary economic environment in which they operate. The Company
adopts RMB to prepare its financial statements.
4. Method for determination of materiality criteria and basis for selection
Item Materiality criteria
Significant prepayments aged more than 1 year The amount exceeds RMB 10 million individually
Significant dividends receivable aged more than 1 year The amount exceeds RMB 50 million individually
Significant other receivables for which bad debt
The amount exceeds RMB 10 million individually
provision is assessed on an individual basis
Reversal or recovery of significant bad debt provision The amount exceeds RMB 10 million individually
Impairment testing of significant long-term equity The carrying amount of an individual long-term equity investment≥
investments 2% of the amount of total assets
The year-end carrying amount of an individual construction in
Significant construction in progress
progress ranges top ten
Impairment testing of significant construction The carrying amount of an individual construction in progress ≥
in progress 20% of the amount of total assets
Significant accounts payable aged more than 1 year The amount exceeds RMB 10 million individually
Significant receipts in advance aged more than 1 year The amount exceeds RMB 10 million individually
Significant contract liabilities aged more than 1 year The amount exceeds RMB 10 million individually
Significant dividends payable aged more than 1 year The amount exceeds RMB 50 million individually
Significant other payables aged more than 1 year The amount exceeds RMB 10 million individually
Cash flows from significant investing activities The amount exceeds 0.5% of the amount of total assets individually
The amount of total revenue or total assets of subsidiaries exceeds
Significant non-wholly owned subsidiaries 15% of the amount of total consolidated revenue or total
consolidated assets
Joint ventures or associates in which the carrying amount of a long-
term equity investment accounts for ≥10% of the amount of total
Significant joint ventures or associates consolidated assets or in which the investment income recognized
under the equity method accounts for ≥10% of the amount of total
consolidated profit
The amount exceeds 0.3% of the amount of total assets individually
Significant commitments including reorganization mergers and acquisitions and building of
construction in progress etc.- 20 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
5. Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for financial instruments which are
measured at fair value the Group adopts the historical cost as the principle of measurement of the
financial statements. Upon being restructured into a stock company the fixed assets and intangible
assets initially contributed by the state-owned shareholders are recognized based on the valuation
amounts confirmed by the state-owned assets administration department. Where assets are impaired
provisions for asset impairment are made in accordance with the relevant requirements.Where the historical cost is adopted as the measurement basis assets are recorded at the amount of
cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time
of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or the
contractual amounts for assuming the present obligation or at the amounts of cash or cash
equivalents expected to be paid to settle the liabilities in the normal course of business.Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date regardless of whether that
price is directly observable or estimated using valuation technique. Fair value measurement and/or
disclosure in the financial statements are determined according to the above basis.In the measurement of non-financial assets at fair value market participants' ability to best utilize
such assets to generate most economic benefits or the ability to sell such assets to other market
participants who are able to best utilize the assets to generate economic benefits is taken into
account.For financial assets of which transaction prices are the fair value on initial recognition and of which
valuation technique involving unobservable input is used in subsequent measurement the valuation
technique in the course of valuation is adjusted to enable the result of initial recognition based on
the valuation technique equal to the transaction price.Fair value measurements are categorized into Level 1 2 or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety which are described as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that
the entity can access at the measurement date;
Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable
for the asset or liability either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.- 21 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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 shall be measured at their respective carrying amounts as recorded
by the combining entities at the date of the combination. The difference between the carrying
amount of the net assets obtained and the carrying amount of the consideration paid for the
combination is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference any excess shall be adjusted against retained earnings.Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred.
6.2 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business combination
in which all of the combining enterprises are not ultimately controlled by the same party or parties
before and after the combination.The cost of combination is the aggregate of the fair values at the acquisition date of the assets
given liabilities incurred or assumed and equity securities issued by the acquirer in exchange for
control of the acquiree. Where a business combination not involving enterprises under common
control is achieved in stages that involve multiple transactions the cost of combination is the sum
of the consideration paid at the acquisition date and the fair value at the acquisition date of the
acquirer's previously held interest in the acquiree. The intermediary expenses (fees in respect of
auditing legal services valuation and consultancy services etc.) and other administrative expenses
attributable to the business combination are recognized in profit or loss in the periods when they
are incurred.The acquiree's identifiable assets liabilities and contingent liabilities acquired by the acquirer in a
business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date.- 22 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Business combinations - continued
6.2 Business combinations not involving enterprises under common control and goodwill
- continued
When a business combination contract provides for the acquirer's recovery of consideration
previously paid contingent on one or multiple future event(s) the Group recognizes the contingent
consideration provided in the contract as an asset as part of the consideration transferred in the
business combination and includes it in the cost of business combination at the fair value at the
acquisition date. Within 12 months after the acquisition where the contingent consideration needs
to be adjusted as new or further evidences are obtained in respect of the circumstances existed at
the acquisition date the adjustment shall be recognized and the amount originally recognized in
goodwill or non-operating income shall be adjusted. A change in or adjustment to the contingent
consideration under other circumstances shall be accounted for in accordance with Accounting
Standards for Business Enterprise No. 22 - Financial Instruments: Recognition and Measurement
and Accounting Standards for Business Enterprises No. 13 - Contingencies. Any change or
adjustment is included in profit or loss for the current period.Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's
identifiable net assets the difference is treated as an asset and recognized as goodwill which is
measured at cost on initial recognition. Where the cost of combination is less than the acquirer's
interest in the fair value of the acquiree's identifiable net assets the acquirer reassesses the
measurement of the fair values of the acquiree's identifiable assets liabilities and contingent
liabilities and measurement of the cost of combination. If after that reassessment the cost of
combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net
assets the acquirer recognizes the remaining difference immediately in profit or loss for the current
period.If either the fair values of identifiable assets liabilities and contingent liabilities acquired in a
combination or the cost of business combination can be determined only provisionally by the end
of the period in which the business combination was affected the acquirer recognizes and measures
the combination using those provisional values. Any adjustments to those provisional values within
twelve months after the acquisition date are treated as if they had been recognized and measured on
the acquisition date.Goodwill arising from a business combination is measured at cost less accumulated impairment
losses and is presented separately in the consolidated financial statements.- 23 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Consolidated financial statements
7.1 Determination criteria of control
Control exists when the investor has power over the investee; is exposed or has rights to variable
returns from its involvement with the investee; and has the ability to use its power over the investee
to affect its returns. The Group reassesses whether or not it controls an investee if facts and
circumstances indicate that there are changes in the above elements of the definition of control.
7.2 Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of
control.Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases
when the Group loses control of the subsidiary.For a subsidiary already disposed of by the Group the operating results and cash flows before the
date of disposal (the date when control is lost) are included in the consolidated income statement
and consolidated cash flow statement as appropriate.For subsidiaries acquired through a business combination involving enterprises not under common
control the operating results and cash flows from the acquisition date (the date when control is
obtained) are included in the consolidated income statement and consolidated cash flow statement
as appropriate.No matter when the business combination occurs in the reporting period subsidiaries acquired
through a business combination involving enterprises under common control or the party being
absorbed under merger by absorption are included in the Group's scope of consolidation as if they
had been included in the scope of consolidation from the date when they first came under the
common control of the ultimate controlling party. Their operating results and cash flows from the
date when they first came under the common control of the ultimate controlling party are included
in the consolidated income statement and consolidated cash flow statement as appropriate.The significant accounting policies and accounting periods adopted by the subsidiaries are
determined based on the uniform accounting policies and accounting periods set out by the
Company.Where the accounting policies and accounting periods adopted by subsidiaries are inconsistent with
those of the Company appropriate adjustments are made to the subsidiaries' financial statements in
accordance with the accounting policies of the Company.All significant intra-group balances and transactions are eliminated on consolidation.- 24 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Consolidated financial statements - continued
7.2 Preparation of consolidated financial statements - continued
The portion of subsidiaries' equity that is not attributable to the Company is treated as minority
interests and presented as "minority interests" in the consolidated balance sheet under the line item
of shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable
to minority interests is presented as "minority interests" in the consolidated income statement under
the line item of "net profit". The portion of comprehensive income of subsidiaries for the period
attributable to minority interests is presented as "total comprehensive income attributable to
minority shareholders" in the consolidated income statement under the line item of "total
comprehensive income".When the amount of loss for the period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders' portion of the opening balance of owners' equity of the
subsidiary the excess amount is still allocated against minority interests.Acquisition of minority interests or disposal of interests in a subsidiary that does not result in the
loss of control over the subsidiary is accounted for as equity transactions. The carrying amounts of
the Company's interests and minority interests are adjusted to reflect the changes in their relative
interests in the subsidiary. The difference between the amount by which the minority interests are
adjusted and the fair value of the consideration paid or received is adjusted to capital reserve. If the
capital reserve is not sufficient to absorb the difference the excess is adjusted against retained
earnings.For the stepwise acquisition of equity interest till acquiring control after a few transactions and
leading to business combination not involving enterprises under common control it shall be dealt
with based on whether it belongs to 'package deal': if it belongs to 'package deal' it will be
accounted for as a transactions to acquire control; if it does not belong to 'package deal' it will be
accounted for as a transaction to acquire control on acquisition date and the fair value of acquiree'
shares held before acquisition date will be revalued and the difference between fair value and
carrying amount will be recognized in profit or loss of the current period; if acquiree' shares held
before acquisition date involve changes in other comprehensive income and other changes in
owners' equity under equity method it will be transferred to income of acquisition date.When the Group loses control over a subsidiary due to disposal of equity investment or other
reasons any retained interest is re-measured at its fair value at the date when control is lost. The
difference between (i) the aggregate of the consideration received on disposal and the fair value of
any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated
from the acquisition date according to the original proportion of ownership interests is recognized
as investment income in the period in which control is lost and the goodwill is offset accordingly.Other comprehensive income associated with investment in the former subsidiary is reclassified to
investment income in the period in which control is lost.- 25 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Consolidated financial statements - continued
7.2 Preparation of consolidated financial statements - continued
When the Group loses control of a subsidiary in two or more arrangements (transactions) terms
and conditions of the arrangements (transactions) and their economic effects are considered. One
or more of the following indicate that the Group shall account for the multiple arrangements as a
'package deal': (i) they are entered into at the same time or in contemplation of each other; (ii) they
form a complete transaction designed to achieve an overall commercial effect; (iii) the occurrence
of one transaction is dependent on the occurrence of at least one other transaction; (iv) one
transaction alone is not economically justified but it is economically justified when considered
together with other transactions. Where the transactions of disposal of equity investments in a
subsidiary until the loss of control are assessed as a package deal these transactions are accounted
for as one transaction of disposal of a subsidiary with loss of control. Before losing control the
difference of consideration received on disposal and the share of net assets of the subsidiary
continuously calculated from acquisition date is recognized as other comprehensive income. When
losing control the cumulated other comprehensive income is transferred to profit or loss of the
period of losing control. If the transactions of disposal of equity investments in a subsidiary are not
assessed as a package deal these transactions are accounted for as unrelated transactions.
8. Joint arrangements
There are two types of joint arrangements - joint operations and joint ventures. The classification is
based on the rights and obligations of the parties under the joint venture arrangement taking into
account factors such as the structure legal form and contractual terms of the arrangement. A joint
operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets and obligations for the liabilities relating to the arrangement. A joint venture is
a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the arrangement.The Group accounts for investments in joint ventures using equity method. Refer to Note (IV)
15.3.2 "Long-term equity investments accounted for using the equity method" for details.
When a group entity undertakes its activities under joint operations the Group as a joint operator
recognizes in relation to its interest in a joint operation: - its assets including its share of any assets
held jointly; its liabilities including its share of any liabilities incurred jointly; its revenue from the
sale of its share of the output arising from the joint operation; its share of the revenue from the sale
of the output by the joint operation; and its expenses including its share of any expenses incurred
jointly. The Group accounts for the assets liabilities revenues and expenses relating to its interest
in a joint operation in accordance with the accounting standards applicable to the particular assets
liabilities revenues and expenses.- 26 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents are the Group's short-term (generally due within 3 months since the acquisition date)
highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
10. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies
10.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded on initial recognition by applying the spot exchange
rate on the date of the transaction.At the balance sheet date foreign currency monetary items are translated into functional currency
using the spot exchange rates at the balance sheet date. Exchange differences arising from the
differences between the spot exchange rates prevailing at the balance sheet date and those on initial
recognition or at the previous balance sheet date are recognized in profit or loss for the period
except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign
currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset
during the capitalization period; (2) exchange differences related to hedging instruments for the
purpose of hedging against foreign currency risks are accounted for using hedge accounting; (3)
exchange differences arising from changes in the carrying amounts (other than the amortized cost)
of monetary items at fair value through other comprehensive income are recognized as other
comprehensive income.When the consolidated financial statements include foreign operation(s) if there is foreign currency
monetary item constituting a net investment in a foreign operation exchange differences arising
from changes in exchange rates are recognized as "exchange differences arising from translation of
financial statements denominated in foreign currencies" in other comprehensive income and in
profit or loss for the period upon disposal of the foreign operation.Foreign currency non-monetary items measured at historical cost are translated to the amounts in
functional currency at the spot exchange rates on the dates of the transactions; the amounts in
functional currency remain unchanged. Foreign currency non-monetary items measured at fair
value are re-translated at the spot exchange rate on the date when the fair value is determined.Difference between the re-translated functional currency amount and the original functional
currency amount is treated as changes in fair value (including changes in exchange rate) and is
recognized in profit or loss or as other comprehensive income.- 27 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Transactions denominated in foreign currencies and translation of financial
statements denominated in foreign currencies - continued
10.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements financial statements of a foreign
operation are translated from the foreign currency into RMB using the following method: assets
and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the balance
sheet date; shareholders' equity items except for unappropriated profit are translated at the spot
exchange rates at the dates on which such items arose; all items in the income statement as well as
items reflecting the distribution of profits are translated at the average exchange rates of the
accounting period of the consolidated financial statements; the opening balance of unappropriated
profit is the translated closing balance of the previous year's unappropriated profit; the closing
balance of unappropriated profit is calculated and presented on the basis of each translated income
statement and profit distribution item. The difference between the translated assets and the
aggregate of liabilities and shareholders' equity items is recognized as other comprehensive income
and included in shareholders' equity.Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary
are translated at average exchange rate during the accounting period of consolidated financial
statements. The effect of exchange rate changes on cash and cash equivalents is regarded as a
reconciling item and presented separately in the cash flow statement as "effect of exchange rate
changes on cash and cash equivalents".The closing balances and the comparative figures of previous year are presented at the translated
amounts in the previous year's financial statements.On disposal of the Group's entire interest in a foreign operation or upon a loss of control over a
foreign operation due to disposal of certain interest in it or other reasons the Group transfers the
accumulated exchange differences arising from translation of financial statements of this foreign
operation attributable to the owners' equity of the Company and presented under other
comprehensive income to profit or loss in the period in which the disposal occurs.In case of a disposal of part equity investments or other reason leading to lower interest percentage
in foreign operations but does not result in the Group losing control over a foreign operation the
exchange differences arising from the translation of foreign currency statements related to this
disposed part are re-attributed to minority interests and are not recognized in profit or loss. For
partial disposals of equity interests in foreign operations which are associates or joint ventures the
proportionate share of the accumulated exchange differences arising from translation of statements
of foreign operations is reclassified to profit or loss.- 28 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to the
contractual provisions of the financial instrument.For financial assets purchased or sold in regular ways assets to be received and liabilities to be
assumed are recognized on the transaction date or assets sold are derecognized on that date.Financial assets and financial liabilities are initially measured at fair value (the method for
determining the fair values of the financial assets and financial liabilities is set out in related
disclosures under "basis of accounting and principle of measurement" in note(IV) 5). For financial
assets and financial liabilities at fair value through profit or loss transaction costs are immediately
recognized in profit or loss. For other financial assets and financial liabilities transaction costs are
included in their initial recognized amounts. Upon initial recognition of contract assets notes
receivable and accounts receivable that do not contain significant financing component or without
considering the financing component included in the contract with a term not exceeding one year
under the Accounting Standards for Business Enterprises No. 14 - Revenue ("Revenue Standards")
the Group adopts the transaction price as defined in the Revenue Standards for initial measurement.The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability and of allocating the interest income or interest expenses over the relevant
accounting periods.The effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability to the gross carrying amount of the financial
asset or to the amortized cost of the financial liability. When calculating the effective interest rate
the Group estimates future cash flows considering all contractual terms of the financial asset or
financial liability (such as repayment in advance extension call option or other similar options etc.)
(without considering the expected credit losses).The amortized cost of a financial asset or a financial liability is the amount of a financial asset or a
financial liability initially recognized net of principal repaid plus or less the cumulative amortized
amount arising from amortization of the difference between the amount initially recognized and the
amount at the maturity date using the effective interest method net of cumulative credit loss
allowance (only applicable to financial assets).
11.1 Classification recognition and measurement of financial assets
Subsequent to initial recognition the Group's financial assets of various categories are subsequently
measured at amortized cost at fair value through other comprehensive income or at fair value
through profit or loss.- 29 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
If the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding and the financial asset is
held within a business model whose objective is achieved by collecting contractual cash flows the
Group classifies such financial asset as financial assets at amortized cost which include cash and
bank balances notes receivable accounts receivable other receivables debt investments and long-
term receivables etc.If the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding and the financial asset is
held within a business model whose objective is achieved by both collecting contractual cash flows
and selling the financial asset the Group classifies such financial asset as financial assets at
FVTOCI. The accounts receivable and notes receivable classified as at FVTOCI upon acquisition
are presented under receivables financing while the remaining items due within one year (inclusive)
upon acquisition are presented under other current assets. Other financial assets of such type are
presented as other debt investments if they are due after one year since the acquisition or presented
under non-current assets due within one year if they are due within one year (inclusive) since the
balance sheet date.On initial recognition the Group may irrevocably designate non-trading equity instruments other
than contingent consideration recognized through business combination not involving enterprises
under common control as financial assets at FVTOCI on an individual basis. Such financial assets
at FVTOCI are presented as investments in other equity instruments.A financial asset is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of selling in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or
It is a derivative that is not a financial guarantee contract or designated and effective as a
hedging instrument.Financial assets measured at fair value through profit or loss ("FVTPL") include those classified as
financial assets at FVTPL and those designated as financial assets at FVTPL.Financial assets not satisfying the criteria of classification as financial assets at amortized cost
and financial assets at FVTOCI are classified as financial assets at FVTPL.Upon initial recognition the Group may irrevocably designate the financial assets as at
FVTPL if doing so eliminates or significantly reduces accounting mismatch.- 30 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.1 Classification recognition and measurement of financial assets - continued
Financial assets at FVTPL other than derivative financial assets are presented as financial assets
held-for-trading. Financial assets with a maturity over one year since the balance sheet date (or
without a fixed maturity) and expected to be held for over one year are presented under other non-
current financial assets.
11.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the
effective interest method. Gain or loss arising from impairment or derecognition is recognized in
profit or loss.For financial assets measured at amortized cost the Group recognizes interest income using
effective interest method. The Group calculates and recognizes interest income through gross
carrying amount of financial assets multiplying effective interest rate except for the following
circumstances:
For purchased or originated credit-impaired financial assets the Group calculates and
recognizes the interest income based on amortized cost of the financial asset and the effective
interest rate through credit adjustment since initial recognition.
11.1.2 Financial assets at FVTOCI
For financial assets classified as at FVTOCI except for the impairment losses or gains and the
interest income and exchange losses or gains calculated using the effective interest method which
are included in profit or loss for the period the changes in fair value are included in other
comprehensive income. The amounts included in profit or loss for each period are equivalent to that
as if the financial assets have been always measured at amortized cost. Upon derecognition the
accumulated gains or losses previously included in other comprehensive income are transferred to
profit or loss for the period.Changes in fair value of non-trading equity instrument investments designated as financial assets at
FVTOCI are recognized in other comprehensive income and the cumulative gains or losses
previously recognized in other comprehensive income allocated to the part derecognized are
transferred and included in retained earnings. During the period in which the Group holds the non-
trading equity instruments revenue from dividends is recognized in profit or loss for the current
period when (1) the Group has established the right of collecting dividends; (2) it is probable that
the associated economic benefits will flow to the Group; and (3) the amount of dividends can be
measured reliably.- 31 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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 ("ECL").For all contract assets notes receivable and accounts receivable arising from transactions regulated
by Revenue Standards and lease receivables arising from transactions regulated by the Accounting
Standards for Business Enterprises No. 21 - Leases the Group recognizes the provision for losses
at an amount equivalent to lifetime ECL.For other financial instruments (other than purchased or originated credit-impaired financial assets)
the Group assesses the changes in credit risk since initial recognition of relevant financial
instruments at each balance sheet date. If the credit risk has increased significantly since initial
recognition of the financial instruments the Group recognizes the provision for losses at an amount
equivalent to lifetime ECL; if the credit risk has not increased significantly since initial recognition
of the financial instruments the Group recognizes the provision for losses at an amount equivalent
to 12-month ECL. The increase or reversal of credit loss provision for financial assets other than
those classified as at FVTOCI is recognized as impairment loss or gain and included in profit or
loss for the period. For financial assets classified as at FVTOCI the credit loss provision is
recognized in other comprehensive income and the impairment loss or gain is included in profit or
loss for the period without reducing the carrying amount of the financial assets in the balance sheet.Where the Group has measured the provision for losses at an amount equivalent to lifetime ECL of
a financial instrument in prior accounting period but the financial instrument no longer satisfies the
criteria of significant increase in credit risk since initial recognition at the current balance sheet date
the Group recognizes the provision for losses of the financial instrument at an amount equivalent
to 12-month ECL at the current balance sheet date with any resulting reversal of provision for
losses recognized as impairment gains in profit or loss for the period.- 32 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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;
- 33 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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).- 34 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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 ECL of relevant financial instruments using the following methods:
For financial assets the credit loss is the present value of the difference between the
contractual cash flows that are due to the Group under the contract and the cash flows that the
Group expects to receive;
For undrawn loan commitments (refer to Note IV 11.4.1.3 for the detail of accounting
policies) the credit loss is the present value of the difference between the contractual cash
flows that are due to the Group if the holder of the loan commitments draws down the loan
and the cash flows that the Group expects to receive if the loan is drawn down. The Group's
estimation of the ECL for loan commitments is consistent with its expectation of the loan
commitments drawn down.For financial guarantee contracts (refer to Note IV 11.4.1.3 for the detail of accounting
policies) the credit loss is the present value of the expected payments to reimburse the holder
for the credit loss incurred less any amounts that the Group expects to receive from the holder
the debtor or any other party.For financial assets credit-impaired at the balance sheet date but not purchased or originated
credit-impaired the credit loss is the difference between the gross carrying amount of the
financial assets and the present value of estimated future cash flows discounted at the original
effective interest rate.The factors reflected by the Group's measurement of ECL of financial instruments include: unbiased
probability weighted average amount recognized by assessing a series of possible results; time value
of money; reasonable and supportable information related to historical events current condition
and forecast of future economic position that is available without undue cost or effort at the balance
sheet date.
11.2.4 Write-down of financial assets
When the Group no longer reasonably expects that the contractual cash flows of financial assets
can be collected in aggregate or in part the Group will directly write down the gross carrying
amount of the financial assets which constitutes derecognition of relevant financial assets.
11.3 Transfer of financial assets
The Group will derecognize a financial asset if one of the following conditions is satisfied: (i) the
contractual rights to the cash flows from the financial asset expire; (ii) the financial asset has been
transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (iii) although the financial asset has been transferred the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.- 35 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.3 Transfer of financial assets - continued
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset and it retains control of the financial asset the Group will recognize the financial
asset to the extent of its continuing involvement in the transferred financial asset and recognize an
associated liability. The Group will measure relevant liabilities as follows:
For transferred financial assets carried at amortized cost the carrying amount of relevant
liabilities is the carrying amount of financial assets transferred with continuing involvement
less amortized cost of the Group's retained rights (if the Group retains relevant rights upon
transfer of financial assets) with addition of amortized cost of obligations assumed by the
Group (if the Group assumes relevant obligations upon transfer of financial assets). Relevant
liabilities are not designated as financial liabilities at fair value through profit or loss.For transferred financial assets carried at fair value the carrying amount of relevant liabilities
is the carrying amount of financial assets transferred with continuing involvement less fair
value of the Group's retained rights (if the Group retains relevant rights upon transfer of
financial assets) with addition of fair value of obligations assumed by the Group (if the Group
assumes relevant obligations upon transfer of financial assets). Accordingly the fair value of
relevant rights and obligations shall be measured on an individual basis.For the transfer of a financial asset in its entirety that satisfies the derecognition criteria the
difference between (1) the carrying amount of the financial asset transferred and (2) the sum of the
consideration received from the transfer and any cumulative gain or loss that has been recognized
in other comprehensive income is recognized in profit or loss. Where the transferred assets are non-
trading equity instrument investments designated as at FVTOCI cumulative gains or losses
previously recognized in other comprehensive income are transferred out and included in retained
earnings.If a part of the transferred financial asset qualifies for derecognition the overall carrying amount of
the financial asset prior to transfer is allocated between the part that continues to be recognized and
the part that is derecognized based on the respective fair value of those parts at the date of transfer.The difference between (1) the carrying amount allocated to the part derecognized on the date of
derecognition; and (2) the sum of the consideration received for the part derecognized and any
cumulative gain or loss allocated to the part derecognized which has been previously recognized in
other comprehensive income is recognized in profit or loss. Where the transferred assets are non-
trading equity instrument investments designated as at FVTOCI cumulative gains or losses
previously recognized in other comprehensive income are transferred out and included in retained
earnings.For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria the
Group continues to recognize the transferred financial asset in its entirety. The consideration
received from transfer of assets is recognized as a liability upon receipt.- 36 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Financial instruments - continued
11.4 Classification of financial liabilities and equity instruments
Financial instruments issued by the Group or their components are classified into financial liabilities
or equity instruments on the basis of the substance of the contractual arrangements and the economic
nature not only the legal form together with the definition of financial liability and equity
instrument on initial recognition.
11.4.1 Classification recognition and measurement of financial liabilities
On initial recognition financial liabilities are classified into financial liabilities at FVTPL and other
financial liabilities.
11.4.1.1 Financial liabilities at FVTPL
Financial liabilities at FVTPL consist of financial liabilities held for trading (including derivatives
classified as financial liabilities) and those designated as at FVTPL. Except for derivative financial
liabilities presented separately the financial liabilities at FVTPL are presented as held-for-trading
financial liabilities.A financial liability is classified as held for trading if one of the following conditions is satisfied:
It has been acquired principally for the purpose of repurchasing in the near term; or
On initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or
It is a derivative that is not a financial guarantee contract or designated and effective as a
hedging instrument.A financial liability may be designated as at FVTPL on initial recognition when one of the following
conditions is satisfied: (i) Such designation eliminates or significantly reduces accounting mismatch;
or (ii) The Group makes management and performance evaluation on a fair value basis in
accordance with the Group's formally documented risk management or investment strategy and
reports to key management personnel on that basis. (iii) The qualified hybrid financial instrument
combines financial asset with embedded derivatives.Held-for-trading financial liabilities are subsequently measured at fair value. Any gains or losses
arising from changes in fair value and any dividends or interest expenses paid on the financial
liabilities are recognized in profit or loss.- 37 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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
For a financial liability designated as at FVTPL the amount of changes in fair value of the financial
liability that are attributable to changes in the credit risk of that liability shall be presented in other
comprehensive income while other changes in fair value are included in profit or loss for the current
period. Upon the derecognition of such financial liability the accumulated amount of changes in
fair value that are attributable to changes in the credit risk of that liability which was recognized in
other comprehensive income is transferred to retained earnings. Any dividend or interest expense
on the financial liabilities is recognized in profit or loss. If the accounting treatment for the impact
of the change in credit risk of such financial liability in the above ways would create or enlarge an
accounting mismatch in profit or loss the Group shall present all gains or losses on that liability
(including the effects of changes in the credit risk of that liability) in profit or loss for the period.For financial liabilities arising from contingent consideration recognized by the Group as the
acquirer in the business combination not involving enterprises under common control the Group
measures such financial liabilities at fair value through profit or loss and includes the changes in
the financial liabilities in profit or loss for the period.
11.4.1.2 Other financial liabilities
Except for financial liabilities financial guarantee contracts and loan commitments arising from
transfer of financial assets that do not meet the derecognition criteria or those arising from
continuing involvement in the transferred financial assets other financial liabilities are
subsequently measured at amortized cost with gain or loss arising from derecognition or
amortization recognized in profit or loss.If the modification or renegotiation for the contract by the Group and its counterparties does not
result in derecognition of a financial liability subsequently measured at amortized cost but the
changes in contractual cash flows the Group will recalculate the carrying amount of the financial
liability with relevant gain or loss recognized in profit or loss. The Group will determine the
carrying amount of the financial liability based on the present value of renegotiated or modified
contractual cash flows discounted at the original effective interest rate of the financial liability. For
all costs or expenses arising from modification or renegotiation of the contract the Group will adjust
the modified carrying amount of the financial liability and make amortization during the remaining
term of the modified financial liability.- 38 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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
11.4.1.3 Financial guarantee contracts and loan commitments
A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder of the contract for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the original or modified terms of a debt instrument.Subsequent to initial recognition financial guarantee contracts that are not designated as financial
liabilities at fair value through profit or loss or financial liabilities arising from transfer of financial
assets that do not meet the derecognition criteria or those arising from continuing involvement in
the transferred financial assets and loan commitments to provide a loan at a below-market interest
rate which are not designated at fair value through profit or loss are measured at the higher of: (1)
amount of loss provision; and (2) the amount initially recognized less cumulative amortization
amount determined based on the revenue standards.
11.4.2 Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged. An agreement between the Group (the debtor) and the creditor to replace
the original financial liability with a new financial liability with substantially different terms is
accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability.When the Group derecognizes a financial liability or a part of it it recognizes the difference between
the carrying amount of the financial liability (or part of the financial liability) derecognized and the
consideration paid (including any non-cash assets transferred or new financial liabilities assumed)
in profit or loss.
11.4.3 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. Equity instruments issued (including refinanced) repurchased
sold and cancelled by the Group are recognized as changes in equity. Changes in fair value of equity
instruments are not recognized by the Group. Transaction costs related to equity transactions are
deducted from equity.The Group recognizes the distribution to holders of the equity instruments as distribution of profits
and dividends paid do not affect total amount of shareholders' equity.- 39 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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.- 40 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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 ("FVTPL") by the Group such financial asset is measured at fair value at the date of
reclassification and the difference between the original carrying amount and the fair value is
recognized in profit or loss for the period.Where a financial asset at amortized cost is reclassified as a financial asset at fair value through
other comprehensive income ("FVTOCI") by the Group such financial asset is measured at fair
value at the date of reclassification and the difference between the original carrying amount and
the fair value is recognized in other comprehensive income.Where a financial asset at FVTOCI is reclassified as a financial asset at amortized cost by the Group
the accumulated gains or losses previously recognized in other comprehensive income are
transferred out and the fair value at the date of reclassification is adjusted. The adjusted fair value
is determined as the new carrying amount as if the financial asset has been always measured at
amortized cost. The reclassification of the financial asset shall not affect its effective interest rate
or the measurement of ECL.- 41 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) 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 gross carrying amount.Where a financial asset at FVTPL is reclassified as a financial asset at FVTOCI by the Group such
financial asset continues to be measured at fair value.Where a financial asset at FVTPL is reclassified the effective interest rate is determined on the
basis of the fair value of the financial asset at the date of reclassification.
12. Receivables
12.1 Determination and accounting methods for expected credit losses of receivables
The Group assesses the credit risk of receivables with significantly different credit risks on an
individual basis and determine the credit losses of receivables on a portfolio basis using an
impairment matrix for other receivables. The amount of increase in or reversal of allowance for
expected credit losses on receivables is included in profit or loss for the period as credit impairment
losses or gains.
12.2 Categories of portfolios for which bad debt provision is assessed on a portfolio basis
according to credit risk characteristics and the basis for determination
The Group classifies receivables into groups A B and C based on common risk characteristics. The
common credit risk characteristics adopted by the Group include: type of financial instrument
credit risk rating type of collateral initial recognition date remaining contractual term industry of
the debtor geographical location of the debtor value of the collateral to the financial asset etc.- 42 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
12. Receivables - continued
12.2 Categories of portfolios for which bad debt provision is assessed on a portfolio basis
according to credit risk characteristics and the basis for determination - continued
The Group makes internal credit ratings on customers and determines expected loss rate of
receivables. Basis for determining ratings and the expected loss rates are as follows:
Internal credit 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 of 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. Receivables financing
Notes receivable classified as at FVTOCI should be listed as receivables financing within one year
(including one year) from the date of acquisition. Those over one year should be listed as other debt
investments. For related accounting policies refer to Note (IV) 11 and Note (IV) 12.
14. Inventories
14.1 Categories of inventories valuation method of inventories upon delivery inventory count
system and amortization method for ow cost and short-lived consumable items and
packaging materials
14.1.1 Categories of inventories
The Group's inventories mainly include raw materials merchandise and others. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition.- 43 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Inventories - continued
14.1 Categories of inventories valuation method of inventories upon delivery inventory count
system and amortization method for ow cost and short-lived consumable items and
packaging materials - continued
14.1.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method and
first-in-first-out method.
14.1.3 Inventory count system
The perpetual inventory system is maintained for stock system.
14.1.4 Amortization method for low cost and short-lived consumable items and packaging
materials
Packaging materials and low cost and short-lived consumable items are amortized using the
immediate write-off method.
14.2 Recognition criteria and provision method for decline in value of inventories
At the balance sheet date inventories are measured at the lower of cost and net realizable value. If
the cost of inventories is higher than the net realizable value a provision for decline in value of
inventories is made.Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion the estimated costs necessary to make the sale and relevant taxes.Net realizable value is determined on the basis of clear evidence obtained after taking into
consideration the purposes of inventories being held and effect of post balance sheet events.Provision for decline in value of inventories is made based on the excess of cost of inventory over
its net realizable value on an item-by-item basis.After the provision for decline in value of inventories is made if the circumstances that previously
caused inventories to be written down below cost no longer exist so that the net realizable value of
inventories is higher than their cost the original provision for decline in value is reversed and the
reversal is included in profit or loss for the period.- 44 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments
15.1 Basis for determining joint control and significant influence over investee
Control is archived when the Group has the power over the investee and has rights to variable
returns from its involvement with the investee; and has the ability to use its power to affect its
returns. Joint control is the contractually agreed sharing of control over an economic activity and
exists only when the strategic financial and operating policy decisions relating to the activity require
the unanimous consent of the parties sharing control. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies. When determining whether an investing enterprise is able to exercise
control or significant influence over an investee the effect of potential voting rights of the investee
(for example warrants and convertible debts) held by the investing enterprises or other parties that
are currently exercisable or convertible shall be considered.
15.2 Determination of initial investment cost
For a long-term equity investment acquired through business combination involving enterprises
under common control share of carrying amount of owners' equity of the acquiree in the
consolidated financial statements of ultimate controlling party is recognized as initial investment
cost of long-term equity investment at the date of combination. The difference between initial
investment cost of long-term equity investment and cash paid non-cash assets transferred and
carrying amount of liabilities assumed is adjusted in capital reserve. If the balance of capital reserve
is not sufficient to absorb the difference any excess is adjusted to retained earnings. If the
consideration of the combination is satisfied by the issue of equity securities the initial investment
cost of the long-term equity investment is the share of carrying amount of owners' equity of the
acquiree in the consolidated financial statements of ultimate controlling party at the date of
combination. The aggregate face value of the shares issued is accounted for as share capital. The
difference between the initial investment cost and the aggregate face value of the shares issued is
adjusted to capital reserve. If the balance of capital reserve is not sufficient to absorb the difference
any excess is adjusted to retained earnings. Where equity interests in an acquiree are acquired in
stages through multiple transactions ultimately constituting a business combination involving
enterprises under common control the acquirer shall determine if these transactions are considered
to be a "package deal". If yes these transactions are accounted for as a single transaction where
control is obtained. If no the initial investment cost of the long-term equity investment is the share
of carrying amount of owners' equity of the acquiree in the consolidated financial statements of
ultimate controlling party at the date of combination. The difference between the initial investment
cost and the sum of carrying amount of equity investments previously held in the acquiree and the
new investment cost is adjusted to capital reserve. If the balance of capital reserve is not sufficient
to absorb the difference any excess is adjusted to retained earnings. Other comprehensive income
recognized for the previously held equity investments by accounting treatment of equity method or
non-trading equity instrument investments designated as at FVTOCI is not subject to accounting
treatment temporarily.- 45 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.2 Determination of initial investment cost - continued
For a long-term equity investment acquired through business combination not involving enterprises
under common control the investment cost of the long-term equity investment acquired is the cost
of acquisition.The expenses incurred by the acquirer in respect of auditing legal services valuation and
consultancy services and other associated administrative expenses attributable to the business
combination are recognized in profit or loss when they are incurred.The long-term equity investment acquired otherwise than through a business combination is initially
measured at its cost. When the entity is able to exercise significant influence or joint control (but
not control) over an investee due to additional investment the cost of long-term equity investments
is the sum of the fair value of previously-held equity investments determined in accordance with
Accounting Standards for Business Enterprises No.22 - Financial Instruments: Recognition and
Measurement (ASBE No. 22) and the additional investment cost.
15.3 Subsequent measurement and recognition of profit or loss
15.3.1 Long-term equity investments accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the
Company's separate financial statements. A subsidiary is an investee that is controlled by the Group.Under the cost method a long-term equity investment is measured at initial investment cost. When
additional investment is made or the investment is recouped the cost of the long-term equity
investment is adjusted accordingly. Investment income is recognized in the period in accordance
with the attributable share of cash dividends or profit distributions declared by the investee.
15.3.2 Long-term equity investments accounted for using the equity method
Except for investments in associates and joint ventures classified as held-for-sale partly or wholly
the Group accounts for investment in associates and joint ventures using the equity method. An
associate is an entity over which the Group has significant influence and a joint venture is a joint
arrangement whereby the Group only has rights to the net assets of the arrangement.Under the equity method where the initial investment cost of a long-term equity investment exceeds
the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition
no adjustment is made to the initial investment cost. Where the initial investment cost is less than
the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition
the difference is recognized in profit or loss for the period and the cost of the long-term equity
investment is adjusted accordingly.- 46 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.3 Subsequent measurement and recognition of profit or loss - continued
15.3.2 Long-term equity investments accounted for using the equity method - continued
Under the equity method the Group recognizes its share of the net profit or loss and other
comprehensive income of the investee for the period as investment income and other
comprehensive income for the period. Meanwhile the carrying amount of long-term equity
investment is adjusted; the carrying amount of long-term equity investment is decreased in
accordance with its share of the investee's declared profit or cash dividends; other changes in
owners' equity of the investee other than net profit or loss and other comprehensive income are
correspondingly adjusted to the carrying amount of the long-term equity investment and recognized
in capital reserve. The Group recognizes its share of the investee's net profit or loss based on the
fair value of the investee's individual identifiable assets etc. at the acquisition date after making
appropriate adjustments. When the investee's accounting policies and accounting period are
inconsistent with those of the Group the Group recognizes investment income and other
comprehensive income after making appropriate adjustments to conform to the Group's accounting
policies and accounting period. However unrealized gains or losses resulting from the Group's
transactions with its associates and joint ventures which do not constitute a business are eliminated
based on the proportion attributable to the Group and then investment gains or losses are recognized.However unrealized losses resulting from the Group's transactions with its associates and joint
ventures which represent impairment losses on the transferred assets are not eliminated.The Group discontinues recognizing its share of net losses of the investee after the carrying amount
of the long-term equity investment together with any long-term interests that in substance form part
of its net investment in the investee are reduced to zero. In addition if the Group has incurred
obligations to assume additional losses a provision is recognized according to the obligation
expected and recorded in the investment loss for the period. Where net profits are subsequently
made by the investee the Group resumes recognizing its share of those profits only after its share
of the profits exceeds the share of losses previously not recognized.- 47 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.4 Disposal of long-term equity investments
On disposal of a long-term equity investment the difference between the proceeds actually received
and receivable and the carrying amount is recognized in profit or loss for the period. For long-term
equity investments accounted for using the equity method if the remaining interest after disposal
is still accounted for using the equity method other comprehensive income previously recognized
using the equity method is accounted for on the same basis as would have been required if the
investee had directly disposed of related assets or liabilities and transferred to profit or loss for the
period on a pro rata basis; owners' equity recognized due to other changes in owners' equity of the
investee (other than net profit or loss other comprehensive income and profit distribution) is
transferred to profit or loss for the period on a pro rata basis. For long-term equity investments
accounted for using the cost method if the remaining interest after disposal is still accounted for
using the cost method other comprehensive income previously recognized using the equity method
or in accordance with the standards for the recognition and measurement of financial instruments
before obtaining the control over the investee is accounted for on the same basis as would have
been required if the investee had directly disposed of related assets or liabilities and transferred to
profit or loss for the period on a pro rata basis; other changes in owners' equity in the investee's net
assets recognized under the equity method (other than net profit or loss other comprehensive
income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.Where the Group loses control over the investee due to disposal of part of shares and in preparing
the separate financial statements remaining shares after disposal can have joint control or
significant influence over the investee the equity method shall be adopted to adjust the remaining
shares as they are accounted for under equity method since the acquisition date. If remaining shares
after disposal cannot have joint control or significant influence over the investee they are accounted
for in accordance with the standards for recognition and measurement of financial instruments and
the difference between fair value on date of losing control and carrying amount is recognized in
profit or loss for the period. Other comprehensive income recognized using the equity method or in
accordance with the standards for the recognition and measurement of financial instruments before
losing control over the investee is accounted for on the same basis as would have been required if
the investee had directly disposed of related assets or liabilities when the control over the investee
is lost; other changes in owners' equity in the investee's net assets recognized under the equity
method (other than net profit or loss other comprehensive income and profit distribution) is
transferred to profit or loss for the period on a pro rata basis. Where remaining shares after disposal
are accounted for under equity method other comprehensive income and other owners' equity are
transferred on a pro rata basis. Where remaining shares after disposal are accounted for in
accordance with the standards for recognition and measurement of financial instruments other
comprehensive income and other owners' equity are all transferred.- 48 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Long-term equity investments - continued
15.4 Disposal of long-term equity investments - continued
Where the Group loses joint control or significant influence over the investee after part disposal of
shares remaining shares after disposal are accounted for in accordance with the standards for
recognition and measurement of financial instruments and the difference between fair value at the
date of losing joint control or significant influence and carrying amount is recognized in profit or
loss for the period. Other comprehensive income previously recognized under the equity method
is accounted for on the same basis as would have been required if the investee had directly disposed
of related assets or liabilities when the equity method is not adopted and other changes in owners'
equity other than net profit or loss other comprehensive income and profit distribution are
transferred to investment income for the period when the equity method is not adopted.The Group disposes of its equity investment in subsidiaries through multiple transactions step by
step until it loses control over the subsidiaries. If these transactions belong to "package deal" all
transactions are deemed as one transaction on disposal of equity investment in subsidiaries and the
difference between the amount of disposal and carrying amount of long-term equity investment is
recognized as other comprehensive income and transferred to profit or loss for the period when the
control is lost.
16. Investment properties
Investment property is the property held by the Group to earn rentals or for capital appreciation or
both. It includes a land use right that is leased out and a building that is leased out.An investment property is measured initially at cost. Subsequent expenditures incurred for such
investment property are included in the cost of the investment property if it is probable that
economic benefits associated with the investment property will flow to the Group and the
subsequent expenditures can be measured reliably. Other subsequent expenditures are recognized
in profit or loss for the period in which they are incurred.The Group uses the cost model for subsequent measurement of investment property and the
investment properties are depreciated over their useful lives using the straight-line method. The
depreciation life estimated residual value rate and annual depreciation rate of each category of
investment properties are as follows:
Annual depreciation rate
Category Depreciation life (year) Residual value rate (%)
(%)
Land use rights 21.25-50 - 2.00-4.71
Buildings and structures 10-43.17 5.00 2.20-9.50
An investment property is derecognized upon disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from the disposal.- 49 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Investment properties - continued
When an investment property is sold transferred retired or damaged the Group recognizes the
amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss
for the period.
17. Fixed assets and depreciation
Fixed assets are tangible assets that are held for use in the production or supply of goods or services
for rental to others or for administrative purposes and have useful lives of more than one
accounting year. A fixed asset is recognized only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.Fixed assets are initially measured at cost. Upon being restructured into a stock company the fixed
assets initially contributed by the state-owned shareholders are recognized based on the valuation
amounts confirmed by the state-owned assets administration department.Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset if it
is probable that economic benefits associated with the asset will flow to the Group and the
subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced
part is derecognized. Other subsequent expenditures are recognized in profit or loss for the period
in which they are incurred.A fixed asset is depreciated over its useful life using the straight-line method starting from the
month subsequent to the one in which it is ready for intended use. The depreciation life estimated
net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
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 1.90-19.00
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.- 50 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
18. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various
construction expenditures during the construction period borrowing costs capitalized before it is
ready for intended use and other relevant costs. Construction in progress is not depreciated.Construction in progress is accounted for by categories of projects initiated and is transferred to a
fixed asset when it is ready for intended use. The criteria for judging the intended use shall be one
of the following:
(1) The physical construction (including installation) of fixed assets has been fully or
substantially completed;
(2) The trial production or trial operation has been carried out and the results of which indicate
that the asset is capable of normal operation or producing qualified products on a stable
basis or the results of which indicate that it is capable of normal functioning or operation;
(3) The fixed assets and intangible assets acquired and constructed have met the design or
contractual requirements or are basically in compliance with the design or contractual
requirements.
19. Borrowing costs
Borrowing costs directly attributable to the acquisition construction or production of qualifying
asset are capitalized when expenditures for such asset and borrowing costs are incurred and
activities relating to the acquisition construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired constructed or produced becomes ready for its
intended use or sale. Capitalization of borrowing costs is suspended during periods in which the
acquisition construction or production of a qualifying asset is interrupted abnormally and when the
interruption is for a continuous period of more than 3 months. Capitalization is suspended until the
acquisition construction or production of the asset is resumed. Other borrowing costs are
recognized as an expense in the period in which they are incurred.Where funds are borrowed under a specific-purpose borrowing the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned from depositing the borrowed funds before being used on the asset or any investment
income on the temporary investment of those funds. Where funds are borrowed under general-
purpose borrowings the Group determines the amount of interest to be capitalized on such
borrowings by applying a capitalization rate to the weighted average of the excess of cumulative
expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization rate
is the weighted average of the interest rates applicable to the general-purpose borrowings. During
the capitalization period exchange differences related to a specific-purpose borrowing denominated
in foreign currency are all capitalized. Exchange differences in connection with general-purpose
borrowings are recognized in profit or loss for the period in which they are incurred.- 51 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
20. Intangible assets
20.1 Useful life and the basis for determination estimates amortization method or review
procedures
Intangible assets include land use rights terminal operating rights and others.An intangible asset is measured initially at cost. Upon being restructured into a stock company the
intangible assets initially contributed by the state-owned shareholders are recognized based on the
valuation amounts confirmed by the state-owned assets administration department. Except for
terminal operating rights when an intangible asset with a finite useful life is available for use its
original cost is amortized over its estimated useful life. The terminal operating rights under the
output method are amortized over periods according to the ratio of the estimated minimum
guaranteed throughput to the estimated minimum guaranteed total throughput during the operation
period. When the estimated minimum guaranteed throughput cannot be measured reliably the
straight-line method will be used for amortization. An intangible asset with indefinite useful life
will not be amortized.The amortization method useful life and estimated net residual value rate of each category of
intangible assets are as follows:
Category Amortization method Useful life (year) Residual value (%)
From the date of the land transfer it
Land use rights Straight-line method is amortized using the straight-line -
method over the land transfer period
Output method - it is amortized
over periods according to the ratio
of the estimated minimum
guaranteed throughput to the
estimated minimum guaranteed
Terminal operating 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
Others Straight-line method estimated useful life the beneficial -
period specified in the contract and
the effective life as defined by law
For an intangible asset with a finite useful life the Group reviews the useful life and amortization
method at the end of the year and makes adjustments when necessary.- 52 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
20. Intangible assets - continued
20.2 Scope of R&D expenditure and method for accounting treatment
Expenditure during the research phase is recognized in profit or loss for the period in which it is
incurred.Expenditure during the development phase that meets all of the following conditions at the same
time is recognized as intangible asset. Expenditure during development phase that does not meet
the following conditions is recognized in profit or loss for the period:
(1) it is technically feasible to complete the intangible asset so that it will be available for use
or sale.
(2) the Group has the intention to complete the intangible asset and use or sell it.
(3) the Group can demonstrate the ways in which the intangible asset will generate economic
benefits including the evidence of the existence of a market for the output of the intangible
asset or the intangible asset itself or if it is to be used internally the usefulness of the
intangible asset.
(4) the availability of adequate technical financial and other resources to complete the
development and the ability to use or sell the intangible asset.
(5) the expenditure attributable to the intangible asset during its development phase can be
reliably measured.If the expenditures cannot be distinguished between the research phase and development phase the
Group recognizes all of them in profit or loss for the year. The costs of intangible assets generated
by the internal research only include the total expenditure incurred for the period from the time
point of capitalization to the time point when the intangible assets are ready for intended use. For
the identical intangible asset the expenditures recorded as expenses before they qualify for
capitalization during the development process are not adjusted.The Group classifies the expenditures on an internal research and development project into
expenditures in the research phase and expenditures in the development phase. The scope of R&D
expenditures refer to those directly related to the R&D activities including wages salaries and
welfare expenses of personnel directly engaged in R&D activities materials directly consumed in
R&D activities depreciation expenses for instruments and equipment used in R&D activities travel
transportation and communication expenses required for research and experimental development
etc. Technical feasibility and economic viability studies are adopted as specific criteria for
classifying the research and development phases once such studies have been evaluated and
approved.- 53 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
21. Impairment of long-term assets
The Group assesses at the balance sheet date whether there is any indication that long-term equity
investments investment properties measured at cost model fixed assets construction in progress
right-of-use assets intangible assets with a finite useful life and assets related to contract costs may
be impaired. If there is any indication that such assets may be impaired recoverable amounts are
estimated for such assets. Intangible assets with indefinite useful life and intangible assets not yet
available for use are tested for impairment annually irrespective of whether there is any indication
that the assets may be impaired.Recoverable amount is estimated on an individual basis. If it is not practical to estimate the
recoverable amount of an individual asset the recoverable amount of the asset group to which the
asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair value
less costs of disposal and the present value of the future cash flows expected to be derived from the
asset.If the recoverable amount of an asset or an asset group is less than its carrying amount the deficit
is accounted for as an impairment loss and is recognized in profit or loss.Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment
testing goodwill is considered together with the related assets group(s) or portfolio of assets
group(s) i.e. goodwill is reasonably allocated to the related assets group(s) or portfolio of assets
group(s) expected to benefit from the synergies of the combination. An impairment loss is
recognised if the recoverable amount of the assets group(s) or portfolio of assets group(s) (including
goodwill) is less than its carrying amount. The impairment loss is firstly allocated to reduce the
carrying amount of any goodwill allocated to such assets group(s) or portfolio of assets group(s)
and then to the other assets of the group pro-rata on the basis of the carrying amount of each asset
(other than goodwill) in the group.Once the impairment loss of above-mentioned assets is recognized it shall not be reversed in any
subsequent period.
22. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over
the current and subsequent periods (together of more than one year). Long-term prepaid expenses
are amortized using the straight-line method over the expected periods in which benefits are derived.
23. Contract liabilities
Contract liabilities refer to the Group's obligation to transfer goods or services to a customer for
consideration received or receivable from the customer. The contract assets and contract liabilities
under the same contract are presented on a net basis.- 54 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Employee benefits
24.1 Short-term employee benefits
Short-term benefits refer to the employee benefits that the Group is required to make full payments
within 12 months after the annual reporting period during which relevant services are provided by
the employees except the post-employment benefits and termination benefits. Specifically the
short-term benefits include: employee salaries bonuses allowances and subsidies employee
benefits social insurance contributions such as the medical insurance and the work injury insurance
housing funds trade union funds and employee education funds short-term paid absence short-
term profit sharing plan non-monetary welfare and other short-term benefits.Short-term employee benefits payable are recognized as liabilities with a corresponding charge to
profit or loss for the period or in the costs of relevant assets in the accounting period in which
employees provide services to the Group. Staff welfare expenses incurred by the Group are
recognized in profit or loss for the period or the costs of relevant assets based on the actually
occurred amounts when they actually occurred. Non-monetary staff welfare expenses are measured
at fair value.Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance work injury insurance and maternity insurance etc. and
payments of housing funds as well as union running costs and employee education costs provided
in accordance with relevant requirements are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognized as relevant liabilities
with a corresponding charge to profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
24.2 Post-employment benefits
Post-employment benefits refer to the rewards and benefits of various forms provided by the Group
after the employees have retired or terminated the labor relationship with the enterprise for the
services rendered by the employees except the short-term benefits and the termination benefits.The post-employment benefits consist of the pension insurance the annuity the unemployment
insurance and other post-employment benefits.Post-employment benefit plans are classified by the Group into defined contribution plans and
defined benefit plans. The post-employment benefit plan refers to the agreements the Group entered
into with the employees on the post-employment benefits or the regulations or measures established
by the Group for provisions of the post-employee benefits among which the defined contribution
plans refer to the post-employment benefit plan under which the Group shall no longer undertake
any obligations of payments after paying fixed expenses to independent funds; the defined benefit
plans refer to the post-employment benefit plans other than the defined contribution plans. During
the accounting period in which employees render services to the Group the amounts payable
calculated based on the defined contribution plans are recognized as liabilities and included in profit
or loss for the period or costs of related assets.- 55 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Employee benefits - continued
24.2 Post-employment benefits - continued
For defined benefit plans the Group attributes the welfare obligations arising from the defined
benefit plans to the period in which employees provide services to the Group according to the
formula determined based on the projected cumulative benefit unit method and includes them in
profit or loss for the period or costs of related assets. Defined benefit costs are categorized as follows:
Service cost (including current service cost past service cost as well as gains and losses on
settlements);
Net interest of net liabilities or assets of defined benefit plans (including interest income of
planned assets interest expenses of defined benefit plan liabilities and effect of asset ceiling);
and
Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.Service costs and net interest of net liabilities and net assets of defined benefit plans are recognized
in profit or loss for the period or costs of related assets. Remeasurement of the net defined benefit
liabilities (assets) (including actuarial gains and losses the return on planned assets excluding
amounts included in net interest on net defined benefit liabilities (assets) and any changes in the
effect of the asset ceiling excluding amounts included in net interest on net defined benefit
liabilities (assets)) are recognized in other comprehensive income.The deficit or surplus resulting from the present value of the defined benefit plan obligations less
the fair value of the defined benefit plan assets is recognized as a net defined benefit plan liability
or net asset.
24.3 Termination benefits
Termination benefits refer to the compensations the Group pay to the employees for terminating the
employment relationship with employees before the expiry of the employment contracts or
encouraging employees to accept voluntary redundancy. When the Group provides termination
benefits to employees employee benefit liabilities are recognized for termination benefits with a
corresponding charge to profit or loss for the period at the earlier of: (1) when the Group cannot
unilaterally withdraw the offer of termination benefits because of the termination plan or a
curtailment proposal; and (2) when the Group recognizes costs or expenses related to restructuring
that involves the payment of termination benefits.
24.4 Other long-term employee benefits
Other long-term employee benefits refer to all employee benefits except for short-term benefits
post-employment benefits and termination benefits.- 56 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Employee benefits - continued
24.4 Other long-term employee benefits - continued
Other long-term employee benefits that qualify as defined contribution plans are treated in
accordance with the relevant provisions of the defined contribution plans mentioned above except
that the net liability or net asset for other long-term employee benefits is recognized and measured
in accordance with the relevant provisions of the defined benefit plans. At the end of the reporting
period employee compensation costs arising from other long-term employee benefits are
recognized as three components: service cost net interest on net liability or net asset for other long-
term employee benefits and changes resulting from the remeasurement of the net liability or net
asset for other long-term employee benefits. The total net amount of these items is included in profit
or loss for the period or in the costs of related assets.The Group provides internal retirement benefits to employees accepting the internal retirement
arrangements. Internal retirement benefits refer to the payments of salaries and social security
contributions for employees who reach the retirement age regulated by the country and are approved
to quit the job voluntarily. For internal retirement benefits the internal retirement benefits the Group
is expected to pay during the period from the date when employees stop providing services to the
date of normal retirement are recognized as liabilities at the present value and included in profit or
loss for the period when relevant recognition requirements of the internal retirement benefits are
met.
25. Provisions
Provisions are recognized when the Group has a present obligation related to a contingency it is
probable that an outflow of economic benefits will be required to settle the obligation and the
amount of the obligation can be measured reliably.The amount recognized as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date taking into account factors pertaining to a contingency
such as the risks uncertainties and time value of money. Where the effect of the time value of money
is material the amount of the provision is determined by discounting the related future cash
outflows.Where all or some of the expenditure required to settle a provision is expected to be reimbursed by
a third party the reimbursement is recognized as a separate asset only when it is virtually certain
that reimbursement will be received and the amount of reimbursement recognized does not exceed
the carrying amount of the provision.- 57 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Share-based payments
A share-based payment is a transaction which the Group grants equity instruments in return for
services rendered by employees or other parties. The Group's share-based payments include equity-
settled share-based payments.Equity-settled share-based payments in exchange for services rendered by employees are measured
at fair value of the equity instruments granted to employees at the grant date. Such amount is
recognized as related costs or expenses on a straight-line basis over the vesting period based on the
best estimate of the number of equity instruments expected to vest/ as related costs or expenses at
the grant date if the equity instruments could be vested immediately with a corresponding increase
in capital reserve.
27. Preferred stock perpetual bonds and other financial instruments
The consideration received by the Group for the issuance of equity instruments is included in
shareholders' equity after deducting transaction costs. Repurchase the consideration and transaction
costs paid by the Group's equity instruments to reduce shareholders' equity.The Group classifies financial instruments or their components as financial liabilities or equity
instruments at initial recognition based on the contractual terms of the issued perpetual bonds and
their reflected economic substance combined with the definitions of financial liabilities and equity
instruments.For financial instruments such as perpetual bonds classified as equity instruments interest expense
or dividend (dividend) distributions are treated as profit distributions of the Group and their
repurchases write-offs etc. are treated as changes in equity and related transaction costs are
deducted from equity.
28. Revenue recognition
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business
The Group's revenue is mainly from port business bonded logistics business and other businesses.The Group recognizes revenue based on the transaction price allocated to the performance
obligation when the Group satisfies a performance obligation in the contract namely when the
customer obtains control over relevant goods or services. A performance obligation is a
commitment that the Group transfers a distinct goods or service to a customer in the contract.- 58 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Revenue recognition - continued
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
It is a performance obligation satisfied during a period of time and the Group recognizes revenue
during a period of time according to the progress of performance if one of the following conditions
is met: (i) the customer obtains and consumes economic benefits at the same time of the Group's
performance; (ii) the customer is able to control goods or services in progress during the Group's
performance; (iii) goods or services generated during the Group's performance have irreplaceable
utilization and the Group is entitled to collect amounts of cumulative performance part which have
been done up to now. Otherwise revenue is recognized at a point in time when the customer obtains
control over the relevant goods or services.The Group adopts output method i.e. the value of goods or services transferred to customers to
determine the appropriate progress of performance. Where the progress cannot be determined
reasonably the revenue is recognized based on the amount of cost that is expected to be
compensated based on the cost already incurred until the progress of performance is reasonably
determined.The transaction price is the amount of consideration to which the Group expects to be entitled in
exchange for transferring promised goods or services to a customer excluding amounts collected
on behalf of third parties and amounts expected to be refunded to a customer. In determining the
transaction price the Group should consider the effects of variable consideration significant
financing components in the contract non-cash consideration and consideration payable to
customers.If there are two or more of performance obligations included in the contract at the inception of the
contract the Group allocates the transaction price to each single performance obligation based on
the proportion of stand-alone selling price of goods or services promised in each stand-alone
performance obligation. However if there is conclusive evidence indicating that the contract
discount or variable consideration is only relative with one or more (not the whole) performance
obligations in the contract the Group will allocate the contract discount or variable consideration
to relative one or more performance obligations. Stand-alone selling price refers to the price of a
single sale of goods or services. If the stand-alone selling price cannot be observed directly the
Group estimates the stand-alone selling price through comprehensive consideration of all relative
information that can be reasonably acquired and maximum use of observable inputs.In case of the existence of variable consideration (such as sales discount) in the contract the Group
shall determine the best estimate of variable consideration based on the expected value or the most
probably occurred amount. The transaction price including variable consideration shall not exceed
the amount of the cumulatively recognized revenue which is unlikely to be significantly reversed
when relevant uncertainty is eliminated. At each balance sheet date the Group re-estimates the
amount of variable consideration which should be included in transaction price.- 59 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Revenue recognition - continued
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
If the customer pays non-cash consideration the Group determines the transaction price based on
the fair value of the non-cash consideration. If the fair value of non-cash consideration cannot be
reasonably estimated the Group shall determine the transaction price indirectly by reference to the
stand-alone selling price of the goods or services promised to transfer to the customer.In case of the existence of a significant financing component in the contract the Group shall
determine the transaction price on the assumption that the customer has paid the amount payable
by cash when obtaining the control over the goods or services. Differences between transaction
price and contract consideration are amortized using effective interest method during the contract
life. At the inception of the contract if the period between when the Group transfers a promised
goods or service to a customer and when the customer pays for that goods or service will be one
year or less the Group would not consider the significant component in the contract.The Group assesses whether it controls each specified goods or service before that goods or service
is transferred to the customer to determine whether the Group is a principal or an agent. If the Group
controls the specified good or service before that good or service is transferred to a customer the
Group is a principal and recognizes revenue in the gross amount of consideration received or
receivable. Otherwise the Group is an agent and recognizes revenue in the amount of any fee or
commission to which it expects to be entitled. The fee or commission is the net amount of
consideration that the Group retains after paying the other party the consideration received in
exchange for the goods or services to be provided by that party or is determined in accordance with
the established commission amount or percentage etc.Where the Group receives receipts in advance from a customer for sales of goods or rendering of
services the amount is first recognized as a liability and then transferred to revenue when the related
performance obligation has been satisfied. When the Group's receipts in advance are not required
to be refunded and it is probable that the customer will waive all or part of its contractual rights the
Group recognizes the said amounts as revenue on a pro-rata basis in accordance with the pattern of
exercise of the customer's contractual rights if the Group expects to be entitled to the amounts
relating to the contractual rights waived by the customer; otherwise the Group reverses the related
balance of the said liabilities to revenue only when it is highly unlikely that the customer will require
performance of the remaining performance obligations.For port business the revenue from the handling of containers and bulk cargos is recognized over
time based on the progress of completed services and the revenue from the storage of containers
and bulk cargos is recognized on a straight-line basis over the period of storage.- 60 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Revenue recognition - continued
28.1 Disclosure of accounting policies adopted for revenue recognition and measurement by type
of business - continued
For bonded logistics business the revenue is recognized based on the progress of services rendered
where the progress of completed services is determined based on the proportion of days on services
provided to the estimated total number of service days. As at the balance sheet date the Group has
re-estimated the progress of completed bonded logistics service so that it reflects the changes in
performance status.
28.2 Similar operations under different business models which involve different revenue
recognition and measurement methods
The Group has no similar operations under different business models which involve different
revenue recognition and measurement methods.
29. Contract costs
29.1 Costs of obtaining a contract
For the incremental cost of obtaining the contract (cost that will not occur if the contract is not
obtained) that is expected to be recoverable it is recognized as an asset. If the amortization period
of such asset is less than one year it is recognized in profit or loss for the period when incurred.Other expenses incurred for obtaining the contract is included in profit or loss for the period when
incurred except for those explicitly assumed by the customer.
29.2 Costs to fulfil a contract
If the costs incurred in fulfilling a contract are not within the scope of any standards other than
Revenue Standards the Group recognizes an asset only if those costs meet all of the following
criteria: (1) the costs relate directly to a contract or to an anticipated contract that the Group can
specifically identify; (2) the costs enhance resources of the Group that will be used in satisfying
performance obligations in the future; and (3) the costs are expected to be recovered. The asset
mentioned above shall be amortized on a basis that is consistent with the revenue recognition of the
goods or services to which the asset relates and recognized in profit or loss for the period.- 61 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
29. Contract costs - continued
29.3 Impairment loss of assets related to contract costs
In determining the impairment losses of assets related to contract costs the Group first determines
the impairment losses of other assets related to contracts recognized in accordance with other ASBE;
then for assets related to contract costs if the carrying amount of the assets is higher than the
difference between: (1) the remaining consideration that the Group expects to obtain for the transfer
of the goods or services related to the assets; and (2) the estimated costs to be incurred for the
transfer of the related goods or services any excess is provided for impairment and recognized as
impairment loss of assets.After the provision for impairment of assets related to contract costs is made if the factors of
impairment in previous periods change so that the difference between the above two is higher than
the carrying amount of the assets the original provision for impairment of the assets is reversed and
recognized in profit or loss for the period provided that the carrying amount of the assets after the
reversal does not exceed the carrying amount of the assets at the date of reversal assuming no
provision for impairment was made.
30. Government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to
the Group at no consideration. A government grant is recognized only when the Group can comply
with the conditions attached to the grant and the Group will receive the grant.If a government grant is in the form of a transfer of a monetary asset it is measured at the amount
received or receivable. If a government grant is in the form of a non-monetary asset it is measured
at fair value. If the fair value cannot be reliably determined it is measured at a nominal amount. A
government grant measured at a nominal amount is recognized immediately in profit or loss for the
period.
30.1 Determination basis and accounting treatment of government grant related to assets
Government grants of the Group mainly include grants for intelligent system etc. and these
government grants relate to assets as they will form long-term assets.A government grant related to an asset is recognized as deferred income and evenly amortized to
profit or loss over the useful life of the related asset. A government grant measured at a nominal
amount is recognized immediately in profit or loss in the current period. Where the relevant asset
is sold transferred retired or damaged prior to the end of its useful life the related undistributed
deferred income is transferred to profit or loss of the disposal period.- 62 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Government grants - continued
30.2 Determination basis and accounting treatment of government grant related to income
Government grants of the Group mainly include grants for business development and specialized
operations etc. and these government grants relate to income as they will not form long-term assets.The Group classifies government grants that are difficult to be distinguished as government grants
related to income aggregately.For a government grant related to income if the grant is a compensation for related expenses or
losses to be incurred in subsequent periods the grant is recognized as deferred income and
recognized in profit or loss for the period in which the related costs or losses are recognized; If the
grant is a compensation for related expenses or losses already incurred the grant is recognized
immediately in profit or loss.A government grant related to the Group's daily activities is recognized in other income or charged
against related costs based on the nature of economic activities; a government grant not related to
the Group's daily activities is recognized in non-operating income.
31. Income tax
The income tax expenses include current income tax and deferred income tax.
31.1 Current income tax
At the balance sheet date current income tax liabilities (or assets) for the current and prior periods
are measured at the amount expected to be paid (or recovered) according to the requirements of tax
laws.
31.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax
base or between the nil carrying amount of those items that are not recognized as assets or liabilities
and their tax base that can be determined according to tax laws deferred tax assets and liabilities
are recognized using the balance sheet liability method.Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax
assets for deductible temporary differences are recognized to the extent that it is probable that
taxable profits will be available against which the deductible temporary differences can be utilized.However for temporary differences associated with the initial recognition of goodwill and the
initial recognition of an asset or liability arising from a transaction which is not a business
combination that affects neither the accounting profit nor taxable profits (or deductible losses) and
will not result in taxable temporary differences and deductible temporary differences in equivalent
amounts at the time of transaction no deferred tax asset or liability is recognized.- 63 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Deferred tax assets/ deferred tax liabilities - continued
31.2 Deferred tax assets and deferred tax liabilities - continued
For deductible losses and tax credits that can be carried forward deferred tax assets are recognized
to the extent that it is probable that future taxable profits will be available against which the
deductible losses and tax credits can be utilized.Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries associates and joint ventures except where the Group is able to control
the timing of the reversal of the temporary differences and it is probable that the temporary
differences will not be reversed in the foreseeable future. Deferred tax assets arising from
deductible temporary differences associated with investments in subsidiaries associates and joint
ventures are recognized to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences can be utilized and they are expected to be
reversed in the foreseeable future.At the balance sheet date deferred tax assets and liabilities are measured at the tax rates applicable
in the period in which the asset is realized or the liability is settled according to tax laws.Current and deferred tax expenses or income are recognized in profit or loss for the period except
when they arise from transactions or events that are directly recognized in other comprehensive
income or shareholders' equity in which case they are recognized in other comprehensive income
or shareholders' equity and when they arise from business combinations in which case they adjust
the carrying amount of goodwill.At the balance sheet date the carrying amount of deferred tax assets is reviewed and reduced if it
is no longer probable that sufficient taxable profits will be available in the future to allow the benefit
of deferred tax assets to be utilized. Any such reduction in amount is reversed when it becomes
probable that sufficient taxable profits will be available.
31.3 Income tax offsetting
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis
or to realize the assets and settle the liabilities simultaneously current tax assets and current tax
liabilities are offset and presented on a net basis.When the Group has a legal right to settle current tax assets and liabilities on a net basis and
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle
current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously
in each future period in which significant amounts of deferred tax assets or liabilities are expected
to be reversed deferred tax assets and deferred tax liabilities are offset and presented on a net basis.- 64 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases
A lease is a contract in which the lessor for a certain period of time gives the lessee the right to
use the assets to obtain a consideration.For contracts entered into the Group assesses whether the contract is or contains a lease at the
commencement date. Such contract will not be reassessed unless the terms and conditions of the
contract are subsequently changed.
32.1 The Group as lessee
32.1.1 Separating components of a lease
For a contract that contains one or more lease components or non-lease components the Group
separates each individual lease and non-lease component and allocates the contract consideration
in the relative proportion of the sum of the individual price of each lease component and the
individual price of the non-lease component.
32.1.2 Right-of-use assets
Except for short-term leases and leases of low-value assets the Group recognizes the right-of-use
assets of the leases at the commencement date. The commencement date of the lease is the date
from which the lessor provides the leased assets to make them available for use by the Group. Right-
of-use assets are initially measured at cost. The cost includes:
the amount of the initial measurement of the lease liabilities.any lease payments made at or before the commencement date less any lease incentives.any initial direct costs incurred by the Group.an estimate of costs to be incurred by the Group in dismantling and removing the underlying
asset restoring the site on which it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease.Right-of-use assets are depreciated by the Group in accordance with the ASBE No.4 Fixed Assets.If the Group is reasonably certain that the lease will transfer ownership of the underlying asset to
the Group by the end of the lease term the right-of-use assets are depreciated from the
commencement date to the end of the useful life of the underlying asset. Otherwise the right-of-
use assets are depreciated from the commencement date to the earlier of the end of the useful life
of the right-of-use assets or the end of the lease term.The Group applies ASBE No. 8 Impairment of Assets to determine whether the right-of-use assets
are impaired and to account for any impairment loss identified.- 65 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.3 Lease liabilities
Except for short-term leases and leases of low-value assets the Group initially measures lease
liabilities at the present value of the outstanding lease payments at the commencement date. In
calculating the present value of the lease payments the Group uses the implicit interest rate of the
lease as the discount rate. If it is not possible to determine the implicit interest rate of the lease
the incremental borrowing rate shall be applied.The lease payments comprise the following payments by the Group for the right to use the
underlying asset during the lease term:
fixed payments (including in-substance fixed payments) less any lease incentives.variable lease payments that depend on an index or a rate.the exercise price of a purchase option if the Group is reasonably certain to exercise that
option.payments for terminating the lease if the lease term reflects the Group exercising an option
to terminate the lease.amounts expected to be payable by the Group under residual value guarantees.Variable lease payments that depend on an index or a rate are initially measured using the index
or rate as at the commencement date. Variable lease payments not included in the measurement of
the lease liabilities are recognized in profit or loss or in the cost of relevant assets in the period
of those payments.After the commencement date interest expenses on the lease liabilities in each period during the
lease term is calculated by a constant periodic rate of interest and included in profit or loss or
charged to cost of related assets.After the commencement date the Group shall remeasure the lease liabilities and make
corresponding adjustments to the related right-of-use assets in the following circumstances. If the
carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the
measurement of the lease liabilities the Group shall recognize the difference in profit or loss:
where there is a change in the lease term or in the assessment of an option to purchase the
underlying asset the Group remeasures the lease liabilities on the basis of the revised lease
term and the revised discount rate;
where there is a change in the amounts expected to be payable under a residual value
guarantee or in future lease payments resulting from a change in an index or a rate used to
determine those payments the Group remeasures the lease liabilities on the basis of the
revised lease payments and the unchanged discount rate unless the change in the lease
payments results from a change in floating interest rates in which case a revised discount
rate is applied to calculate the present value.- 66 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.4 Short-term leases and leases of low-value assets
The Group elects not to recognize right-of-use assets or lease liabilities for short-term leases and
leases of low-value assets i.e. port and terminal facilities buildings machinery and equipment
furniture fixture and other equipment motor vehicles and cargo ships and others. A short-term
lease is a lease that at the commencement date has a lease term of 12 months or less and does not
contain a call option. A lease of low-value assets is a lease that the value of the underlying asset is
less than RMB50000 when it is new. For short-term leases and leases of low-value assets the
Group recognizes the lease payments in profit or loss or in the cost of related assets on a straight-
line basis over each period within the lease term.
32.1.5 Lease modifications
A lease modification should be accounted for as a separate lease if both of the following apply:
the modification increases the scope of the lease by adding the right to use one or more
underlying assets.the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustments to that stand-alone price
according to the circumstances of the particular contract.For a lease medication that is not accounted for as a separate lease at the effective date of the lease
modification the Group should allocate the consideration in the modified contract determine the
lease term of the modified lease and remeasure the lease liabilities based on the present value of the
changed lease payments and the revised discount rate.For lease modifications that decrease the scope of the lease or shorten the term of the lease the
Group should decrease the carrying amount of the right-of-use assets with any gain or loss relating
to the partial or full termination of the lease recognized in profit or loss. For re-measurement of
lease liabilities due to other lease modifications a corresponding adjustment is made to the carrying
amount of the right-of-use assets.- 67 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.1 The Group as lessee - continued
32.1.6 Sale and leaseback transactions
The Group as seller-lessee
The Group applies the requirements of Revenue Standard to determine whether the transfer of an
asset is accounted for as a sale of that asset. If the transfer of an asset does not constitute a sale the
Group shall continue to recognize the transferred assets recognize a financial liability equal to the
transfer proceeds and accounts for such financial liability in accordance with the Accounting
Standards for Business Enterprises No. 22 - Financial Instruments: Recognition and Measurement.If the transfer of an asset is a sale the Group shall measure the right-of-use assets arising from the
leaseback at the proportion of the previous carrying amount of the asset that relates to the right of
use and recognize any gain or loss for rights transferred to the lessor only.
32.2 The Group as lessor
32.2.1 Separating components of a lease
For a contract that contains lease components and non-lease components the Group allocates the
contract consideration in accordance with the Revenue Standards on allocation of transaction prices
based on the respective individual prices of the lease components and the non-lease components.
32.2.2 Classification of leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership. All other leases are classified as operating leases.
32.2.2.1 The Group as lessor under operating leases
The Group recognizes lease receipts from operating leases as rental income using a straight-line
method over the respective periods of the lease term. The Group's initial direct costs incurred in
connection with operating leases are capitalized when the costs incurred and are allocated to profit
or loss for the period over the lease term on the same basis as the recognition of rental income.Variable lease receipts acquired by the Group in connection with operating leases that are not
included in the lease receipts are recognized in profit or loss for the period when they are actually
incurred.- 68 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.2 The Group as lessor - continued
32.2.2 Classification of leases - continued
32.2.2.2 The Group as lessor under finance leases
At the commencement date the Group recognizes a finance lease receivable at the amount equal to
the net lease investment with assets under finance lease derecognized. The net lease investment is
the sum of any unguaranteed residual value and the present value of the lease receipts over the lease
term discounted at the interest rate implicit in lease.The lease receivable comprises the following payments collected by the Group from the lessee for
the transfer of the right to use the underlying assets during the lease term:
fixed payments (including in-substance fixed payments) paid by the lessee less any lease
incentives.variable lease payments that depend on an index or a rate.the exercise price of a purchase option provided that it is reasonably determined that the
lessee will exercise the option.payments for terminating the lease provided that the lease term reflects that the lessee will
exercise the option to terminate the lease;
residual value of guarantee provided to the Group by the lessee a party related to the lessee
and an independent third party with the financial ability to fulfil the guarantee obligations.Variable lease receipts not included in the net lease investment are recognized in profit or loss when
they are actually incurred.Interest income for each period over the lease term is calculated and recognized by the Group at a
fixed periodic rate.
32.2.3 Subleases
As the lessor of a sublease the Group accounts for the original lease contract and the sublease
contract on a separate basis. The Group classifies the subleases based on the right-of-use assets
generating from the original lease rather than the underlying assets of the original lease.- 69 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
32. Leases - continued
32.2 The Group as lessor - continued
32.2.4 Lease modifications
The Group accounts for a modification to an operating lease as a new lease from the effective date
of the modification considering any lease advances or receivables relating to the original lease as
the lease receipts for the new lease.A lease modification should be accounted for as a separate lease if there is a modification in a
finance lease and both of the followings apply:
the modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope with any appropriate adjustment to that stand-alone price.For a modification to a finance lease that is not accounted for as a separate lease the Group accounts
for the modification as follows:
If the lease would have been classified as an operating lease had the modification been
effective at the commencement date the Group should account for the lease modification as
a new lease from the effective date of the modification and measure the carrying amount of
the underlying assets at the amount equal to the net lease investment before the effective date
of the modification;
If the lease would have been classified as a finance lease had the modification been effective
at the commencement date the Group should account for it in accordance with the provisions
on contract modification and renegotiation under Accounting Standards for Business
Enterprises No. 22 - Financial Instruments: Recognition and Measurement.
32.2.5 Sale and leaseback transactions
The Group as the buyer-lessor
If the transfer of an asset in a sale and leaseback transaction does not constitute a sale the Group
does not recognize the transferred asset but a financial asset at an amount equal to the transfer
proceeds and accounts for such financial asset under the Accounting Standards for Business
Enterprises No. 22 - Financial Instruments: Recognition and Measurement. If the transfer of an
asset constitutes a sale the Group accounts for the purchase of the asset in accordance with other
applicable Accounting Standards for Business Enterprises and accounts for the lease of the asset.- 70 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
33. Exchange of non-monetary assets
When the non-monetary assets are of commercial substance and the fair value of assets received or
the assets given up can be measured reliably the non-monetary transactions are measured at fair
value. For the asset received the fair value of the asset given up and related taxes payable are
recognized as the cost at initial recognition; For the asset given up at derecognition the difference
between the fair value and the carrying amount is recognized in profit or loss for the current period.When there is clear evidence indicating that the fair value of the received asset is more reliable for
the asset received the fair value of the asset received and related taxes payable are recognized as
the cost at initial recognition; For the asset given up at derecognition the difference between the
fair value of the asset received and the carrying amount of the asset given up is recognized in profit
or loss for the current period.When the non-monetary transactions fail to meet criteria to be measured at fair value the
transactions are measured at carrying amounts. For the asset received the carrying amount of the
asset given up and relevant taxes payable are recognized as the cost of at initial recognition. For the
asset given up at derecognition no profit or loss is recognized.
34. Safety production cost
According to the Administrative Measures for the Collection and Utilization of Enterprise Work
Safety Funds (Cai Zi [2022] No. 136) jointly issued by the Ministry of Finance and the Emergency
Department on 13 December 2022 safety production cost set aside by the Group is directly included
in the cost of relevant products or recognized in profit or loss for the period and transferred to
special reserve simultaneously. When safety production cost set aside is utilized if the costs
incurred can be categorized as expenditure the costs incurred should be charged against the special
reserve. If the costs set aside are used to build up fixed assets the costs should be charged to
construction in progress and reclassified to fixed assets when the safety projects are ready for
intended use. Meantime expenditures in building up fixed assets are directly charged against the
special reserve with the accumulated depreciation recognized at the same amount. Depreciation will
not be made in the future period on such fixed assets.(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES
In the application of accounting policies and accounting estimates as set out in Note (IV) the Group
is required to make judgments estimates and assumptions about the carrying amounts of items in
the financial statements that cannot be measured accurately due to the internal uncertainty of the
operating activities. These judgments estimates and assumptions are based on historical experience
of the Group's management as well as other factors that are considered to be relevant. Actual results
may differ from these estimates.- 71 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES - continued
The Group regularly reviews the judgments estimates and assumptions on a going concern basis.Changes in accounting estimates which only affect the current period should be recognized in the
current period; changes which not only affect the current but the future periods should be recognized
in the current and future periods. At the balance sheet date key assumptions and uncertainties in
critical judgments and accounting estimates that are likely to lead to significant adjustments to the
carrying amounts of assets and liabilities in the future are as follows:
Goodwill impairment
For the purpose of impairment testing the present value of the expected future cash flows of the
assets group or portfolio including goodwill shall be calculated and such expected future cash flows
shall be estimated. Meantime a rate shall be determined that should reflect the time value of money
on the current market and the specific interest risks.Recognition of deferred income tax
The Group calculates and makes provision for deferred tax liabilities according to the profit
distribution plans of subsidiaries associates and joint ventures and relevant provisions of tax law.For retained earnings of the investee which are not expected to be distributed since the profits will
be used for the daily operation and future development of the investee no deferred tax liabilities
are recognized. If the profits to be actually distributed in future years are more or less than those
expected corresponding deferred tax liabilities will be recognized or reversed in profit or loss for
the period at the earlier of the date on which the profit distribution plan is changed and the date on
which the profit distribution is declared.Deferred tax assets are recognized based on the deductible temporary differences and the
corresponding tax rate to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences can be utilized. If the actual taxable income in
future years are more or less than that expected corresponding deferred tax assets will be
recognized or reversed in profit or loss for the period in which they are actually incurred.Estimated useful lives and residual value of fixed assets and intangible assets
The Group assesses the estimated useful lives and residual value of fixed assets and intangible assets.Such estimate is made by reference to the historical experience of actual useful lives and residual
value of fixed assets and intangible assets of similar nature and function and is subject to significant
changes due to technical innovation and fierce industry competition. Where the estimated useful
lives and residual value of fixed assets and intangible assets are less than the previous estimates
the Group will increase the depreciation and amortization or write off or eliminate the technically
obsolete fixed assets or intangible assets.- 72 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VI) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES
1. Changes in significant accounting policies
1.1 Interpretation No. 16 of the Accounting Standards for Business Enterprises
The Interpretation No. 16 of the Accounting Standards for Business Enterprises (the "Interpretation
No. 16") was issued by the Ministry of Finance on 30 November 2022 which clarified the
accounting treatment concerning the exemption of initial recognition of deferred income tax relating
to assets and liabilities arising from a single transaction.Interpretation No. 16 revised the coverage of exemption of the initial recognition of deferred income
tax in the Accounting Standards for Business Enterprises No. 18 – Income Tax and specified that
the relevant provisions on the exemption of initial recognition of deferred tax liabilities and deferred
tax assets are not applicable to a single transaction (not a business combination) that affects neither
the accounting profit nor taxable income (or deductible losses) at the time of transaction and where
the assets and liabilities initially recognized generate equal taxable temporary differences and
deductible temporary differences. The Interpretation became effective from 1 January 2023 and
could be early applied. The Group started to apply the Interpretation from 1 January 2023 adopted
the retrospective adjustment method for accounting treatment and restated the financial statements
for the comparative year. The impacts are listed as follows:
Item 1/1/2022 Adjustment 1/1/2022
Assets:
Deferred tax assets 398145710.84 56499013.55 454644724.39
Liabilities:
Deferred tax liabilities 4550417470.61 2001049.09 4552418519.70
Shareholders' equity:
Unappropriated profit 14205879106.49 21052360.17 14226931466.66
Minority interests 71234238229.35 33445604.29 71267683833.64
Item 31/12/2022 Adjustment 31/12/2022
Assets:
Deferred tax assets 372927261.40 61571559.55 434498820.95
Liabilities:
Deferred tax liabilities 4853271307.86 1748527.47 4855019835.33
Shareholders' equity:
Other comprehensive income -691536248.44 1982628.58 -689553619.86
Unappropriated profit 16679688347.09 22299954.05 16701988301.14
Minority interests 73994641893.21 35540449.45 74030182342.66
- 73 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VI) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
1. Changes in significant accounting policies - continued
1.1 Interpretation No. 16 of the Accounting Standards for Business Enterprises - continued
Item 2022 Adjustment 2022
Profit and loss:
Income tax expenses 1113179679.35 -220002.60 1112959676.75
Net profit 8231683297.67 220002.60 8231903300.27
Profit or loss attributable to minority
4894237074.85-1027591.284893209483.57
shareholders
Other comprehensive income
attributable to shareholders of the 206102739.65 1982628.58 208085368.23
Company net of tax
Other comprehensive income
attributable to minority interests 1417424133.35 3122436.44 1420546569.79
net of tax
(VII) TAXES
1. Major taxes and tax rates
Taxes Tax basis Tax rate
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
service industries
("VAT") (Note 3)
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
Environmental protection tax RMB 1.8 per pollution
taxable air pollutants converted based on the
(Note 5) equivalent
quantity of pollutions discharged
- 74 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VII) TAXES - continued
1. Major taxes and tax rates - continued
Note 1: The Group's enterprise income tax is calculated based on the current tax rate stipulated by
local tax laws. Among them the Company is subject to an enterprise income tax rate of
25% the subsidiaries set up in Hong Kong are subject to an enterprise income tax rate of
8.25% and 16.5% the majority of subsidiaries set up in China are subject to an enterprise
income tax rate of 25% and certain others are subject to the preferential tax rate for small
and micro enterprises of 20% certain domestic subsidiaries are subject to the preferential
tax rate for high-tech enterprises or encouraged industrial enterprises in the region of 15%
and the other overseas subsidiaries are subject to enterprise income tax rates between 10%
and 34%.The Company obtains dividends distributed by overseas subsidiaries and should pay
enterprise income tax at a rate of 25% in accordance with relevant Chinese tax laws. The
Company obtains taxable income outside of China and the amount of income tax that has
been paid abroad can be offset with the current taxable amount. The credit limit is the
taxable amount calculated in accordance with the provisions of the Enterprise Income Tax
Law.Note 2: Foreign investors who receive dividends of profits from Chinese subsidiaries in 2008 and
thereafter generally shall pay withholding income tax at a rate of 10% in accordance with
the relevant provisions on the PRC enterprise income tax. For companies incorporated in
certain regions (including Hong Kong and Singapore) if the companies are actual owners
holding more than 25% interest in the subsidiaries in China they will enjoy a preferential
tax rate of 5%.Note 3: The VAT amount is the balance of the output tax less the deductible input tax and the
output tax is calculated in accordance with the sales income and the corresponding tax rate
stipulated in the relevant tax laws of China.Note 4: The social contribution tax is the tax paid by TCP Participa??es S.A. (hereinafter referred
to as "TCP") an overseas subsidiary of the Group to the local government.Note 5: The environmental protection tax is the tax paid by Zhanjiang Port (Group) Co. Ltd.(hereinafter referred to as "Zhanjiang Port") a domestic subsidiary of the Group to the
government.
2. Tax preference
Certain subsidiaries of the Group in China are recognized as high-tech enterprises or encouraged
industrial enterprises in the region and are subject to an enterprise income tax rate of 15%. The
Group's subsidiaries outside of China may be subject to enterprise income tax preference in
accordance with relevant local tax policies.- 75 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VII) TAXES - continued
2. Tax preference - continued
From 1 January 2023 to 31 December 2027 the urban land use tax for certain domestic subsidiaries
of the Group on the land for bulk commodity storage facilities is levied at the reduced rate of 50%
of the tax amount applicable to the grade of the land.Certain subsidiaries of the Group in China are small and micro enterprises and are subject to a
preferential tax rate of 20%. In accordance with the Announcement on Relevant Tax and Fee
Policies for Further Supporting the Development of Micro and Small Enterprises and Individual
Industrial and Commercial Households (Announcement No. 12 of the Ministry of Finance and the
State Administration of Taxation in 2023) for small and micro enterprises the taxable income is
calculated at a reduced rate of 25% and the enterprise income tax is paid at a rate of 20% from 1
January 2023 and 31 December 2027.As approved by Shekou Taxation Sub-bureau of Shenzhen Tax Bureau State Administration of
Taxation on 12 October 2017 certain subsidiaries of the Group are exempted from VAT for
auxiliary logistics services (warehousing services excluding delivery services) provided to
overseas enterprises in 2023.(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Item 31/12/2023 31/12/2022
Cash 974692.93 726960.10
Including: RMB 2767.60 2767.60
USD 225565.37 44853.90
HKD 25259.89 26167.88
BRL 8625.45 6536.63
Others 712474.62 646634.09
Bank deposits (Note 1) 13934385410.92 11219776605.37
Including: RMB 8215456953.08 8846763966.57
USD 3189067302.34 1045085866.19
EUR 655188558.31 745066787.31
BRL 283264276.30 379062088.91
HKD 1211715308.91 141668372.90
AUD 36381245.06 4708056.85
FCFA 295232843.14 -
Others 48078923.78 57421466.64
Other cash and bank balances (Note 2) 54207918.46 553726619.61
Including: LKR 39287209.66 -
RMB 14920544.77 340778819.19
HKD 164.03 212571712.02
USD - 376088.40
Funds deposited in Finance Company (Note 3) 2090078155.93 1841698554.32
Total 16079646178.24 13615928739.40
Including: Total amount of funds deposited overseas 4143910318.92 4012922744.09
- 76 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
1. Cash and bank balances - continued
Note 1: The interest receivable and funds frozen for ETC card business which are included in the
balance of bank deposits at the end of the year amounted to RMB 13563157.74 and RMB
12000.00 respectively.
Note 2: The funds frozen for litigation the balance of the securities account the restricted banker's
letter of guarantee and the restricted performance bond which are included in the balance
of other cash and bank balances at the end of the year amounted to RMB 1826085.98
RMB 7684462.32 RMB 4214480.40 RMB 40482889.76.Note 3: The funds deposited in Finance Company included the interest receivable amounting to
RMB 933933.26.
2. Held-for-trading financial assets
Item 31/12/2023 31/12/2022
Financial assets classified as at FVTPL 4568806108.84 2998781599.63
Including: Investments in debt instruments 450209.48 -
Investments in equity investments - 135742.11
Structured deposits 4568355899.36 2998645857.52
Total 4568806108.84 2998781599.63
3. Notes receivable
(1) Category of notes receivable
Category 31/12/2023 31/12/2022
Bank acceptance 315150195.09 395000.00
Commercial acceptance 10000000.00 36000000.00
Total 325150195.09 36395000.00
Note: In 2023 no provision for bad debts of notes receivable is assessed on an individual basis
and the acceptor of bank acceptance and commercial acceptance for which provision for
bad debts is assessed on a portfolio basis has high credit ratings with no significant credit
risks therefore no provision for bad debts is made.
(2) As at 31 December 2023 the Group has no notes receivable pledged.
(3) As at 31 December 2023 the Group has no endorsed or discounted and not yet matured
notes receivable at the balance sheet date.
(4) The Group has no notes receivable written off in 2023.
- 77 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable
(1) Overall situation of accounts receivable
Category 31/12/2023 31/12/2022
Accounts receivable 1194923829.34 1370162956.88
Les: provision for credit loss 91022363.09 94013267.44
Total 1103901466.25 1276149689.44
(2) Aging analysis of accounts receivable
Aging 31/12/2023 31/12/2022
Within 1 year 1112613215.99 1296002000.92
1-2 years 23735983.67 11157744.62
2-3 years 3139299.76 10897749.26
More than 3 years 55435329.92 52105462.08
Total 1194923829.34 1370162956.88
(3) Disclosure of accounts receivable by category
Expected 31/12/2023 31/12/2022
Credit
credit loss Gross carrying Bad debt Carrying Gross carrying Bad debt Carrying
rating
rate (%) amount provision amount amount provision amount
A 0.00-0.10 622585699.82 428822.70 622156877.12 757893845.42 254506.65 757639338.77
B 0.10-0.30 428914672.70 552173.90 428362498.80 437329923.88 579435.66 436750488.22
C 0.30-50.00 62942396.67 9638519.30 53303877.37 91915183.34 12581359.16 79333824.18
D 50.00-100.00 80481060.15 80402847.19 78212.96 83024004.24 80597965.97 2426038.27
Total -- 1194923829.34 91022363.09 1103901466.25 1370162956.88 94013267.44 1276149689.44
(4) Accounts receivable disclosed by method of bad debt provision:
31 December 2023 31 December 2022
Gross carrying amount Bad debt provision Gross carrying amount Bad debt provision
Category
Proportion Proportion Carrying amount Proportion Proportion Carrying amount
Amount Amount Amount Amount
(%)(%)(%)(%)
Bad debt provision assessed on an
80481060.156.7480402847.1999.9078212.9683024004.246.0680597965.9797.082426038.27
individual basis
Bad debt provision assessed on a
1114442769.1993.2610619515.900.951103823253.291287138952.6493.9413415301.471.041273723651.17
portfolio basis
Total 1194923829.34 100.00 91022363.09 — — 1103901466.25 1370162956.88 100.00 94013267.44 — — 1276149689.44
Bad debt provision assessed on an individual basis:
31 December 2023
Name Gross carrying Bad debt Reason for provision
Proportion (%)
amount provision
Entity 1 24908308.44 24908308.44 100.00 Low probability of recovery
Entity 2 15228816.61 15150603.67 99.49 Low probability of recovery
Entity 3 7693327.33 7693327.33 100.00 Low probability of recovery
Entity 4 6169500.45 6169500.45 100.00 Low probability of recovery
Entity 5 5923278.20 5923278.20 100.00 Low probability of recovery
Others 20557829.12 20557829.10 100.00 Low probability of recovery
Total 80481060.15 80402847.19 — — — —
- 78 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(4) Accounts receivable disclosed by method of bad debt provision: - continued
Bad debt provision assessed on a portfolio basis:
31 December 2023
Name
Accounts receivable Bad debt provision Proportion (%)
A 622585699.82 428822.70 0.07
B 428914672.70 552173.90 0.13
C 62942396.67 9638519.30 15.31
Total 1114442769.19 10619515.90 — —
(5) Measurement of expected credit loss at an amount equivalent to the lifetime expected credit
loss
Lifetime expected Lifetime expected
Item credit loss (not credit loss (credit- Total
credit-impaired) impaired)
At 1 January 2023 13450.7 80597965.97 94013267.44
Gross carrying amount of accounts receivable
at 1 January 2023
- Transfer to credit-impaired accounts receivable - - -
- Reversal of accounts receivable that are not
---
credit-impaired
Provision for the year 36159.7 17614537.42 20976076.79
Reversal for the year -59730.86 -5694956.74 -11690687.60
Effect of changes in the scope of consolidation - -5662552.89 -5662552.89
Transfer-out due to derecognition of financial
--8087700.00-8087700.00
assets (including direct write-down)
Other changes -161594.08 1635553.43 1473959.35
At 31 December 2023 10619515.90 80402847.19 91022363.09
(6) Details of bad debt provision
Changes for the year
Effect of
Category 31/12/2022 Recovery or changes in the Charge-off or Other 31/12/2023
Provision
reversal scope of write-off changes
consolidation
Bad debt provision
assessed on an 80597965.97 17614537.42 -5694956.74 -5662552.89 -8087700.00 1635553.43 80402847.19
individual basis
Bad debt provision
assessed on a 13415301.47 3361539.37 -5995730.86 - - -161594.08 10619515.90
portfolio basis
Total 94013267.44 20976076.79 -11690687.60 -5662552.89 -8087700.00 1473959.35 91022363.09
- 79 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Accounts receivable - continued
(7) Accounts receivable written off in the year
Arising from
Procedures
Item Nature Amount Reason for write-off related party
performed
transactions or not
Confirmed as
Entity A Service fees 8087700.00 Yes No
irrecoverable
Total — — 8087700.00 — — — — — —
(8) The top five balances of accounts receivable at the end of the year classified by debtor
Name of Relationship Proportion of the amount to the Bad debt provision at
31/12/2023 Aging
entity with the Group total accounts receivable (%) 31/12/2023
Client 1 Non-related party 259396393.45 Within 1 year 1-2 years 21.71 30325.21
Client 2 Non-related party 68403654.05 Within 1 year 5.72 54946.81
Client 3 Non-related party 43464824.09 Within 1 year 1-2 years 3.64 7510.99
Client 4 Non-related party 29747677.62 Within 1 year 2.49 7909.61
Client 5 Non-related party 29355671.89 Within 1 year 2.46 -
Total 430368221.10 36.02 100692.62
5. Receivables financing
(1) Classification of receivables financing
Item 31/12/2023 31/12/2022
Bank acceptance measured at fair value 2001669.46 163766913.10
(2) As at 31 December 2023 the Group has no pledged receivables financing.
(3) At the end of the year the Company's receivables financing that have been endorsed or
discounted and have not yet matured at the balance sheet date are as follows:
Amount not
Amount derecognized
Item derecognized at the
at the end of the year
end of the year
Bank acceptance measured at fair value 16291826.66 -
Total 16291826.66 -
(4) In 2023 no provision for bad debt of receivables financing is assessed on an individual basis
and the acceptor of bank acceptance for which provision for bad debts is assessed on a
portfolio basis has high credit ratings with no significant credit risks therefore no provision
for credit loss is made.- 80 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Prepayments
(1) Aging analysis of prepayments
31/12/202331/12/2022
Gross Gross
Aging Proportion Impairment Proportion Impairment
carrying carrying
(%) provision (%) provision
amount amount
Within 1 year (inclusive) 36798888.01 97.70 - 61917391.43 97.31 -
1-2 years (inclusive) 615427.75 1.63 - 1589158.49 2.50 -
2-3 years (inclusive) 129361.04 0.34 - - - -
More than 3 years 120875.50 0.33 - 120875.50 0.19 -
Total 37664552.30 100.00 - 63627425.42 100.00 -
(2) As at 31 December 2023 the Group has no significant prepayments aged more than one
year.
(3) The top five balances of prepayments at the end of the year classified by entities
Proportion of the
Relationship with closing balance to Reason for not being
Name of entity 31/12/2023 Aging
the Company the total settled
prepayments (%)
Unsettled prepayment for
Entity 1 Non-related party 14057775.95 Within 1 year 37.32
premium
Within 1 year 1-2 Unsettled prepayment for
Entity 2 Non-related party 6591641.10 17.50
years and 2-3 years communication charges
Unsettled prepayment for
Entity 3 Non-related party 2298659.10 Within 1 year 6.10
premium
Unsettled prepayment for
Entity 4 Non-related party 743362.83 Within 1 year 1.97
procurement
Unsettled prepayment for
Entity 5 Non-related party 641646.87 Within 1 year 1.70
procurement
Total 24333085.85 64.59
7. Other receivables
7.1 Presentation of other receivables
Item 31/12/2023 31/12/2022
Dividends receivable 343386866.06 416040485.62
Other receivables 596628127.95 532801608.68
Total 940014994.01 948842094.30
- 81 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.2 Dividends receivable
(1) Presentation of dividends receivable
Name of investee 31/12/2023 31/12/2022
China Nanshan Development (Group) Incorporation
203577000.00240591000.00
("Nanshan Group")
Zhanjiang Merchants Port City Investment Co. Ltd.
38809044.7741847044.77
("Merchants Port City")
Dalian Port Logistics Network Co. Ltd. 30605256.76 -
Yingkou Gangxin Technology Co. Ltd. 23881213.75 -
COSCO Logistics (Zhanjiang) Co. Ltd. 13449001.16 18449001.16
China Ocean Shipping Agency (Shenzhen) Co. Ltd. 11232000.00 -
Tin-can Island Container Terminal Ltd 21960680.22 65121449.40
Qingdao Qianwan United Container Terminal Co. Ltd. - 50000000.00
Others 216400.00 448447.23
Sub-total 343730596.66 416456942.56
Less: Bad debt provision 343730.60 416456.94
Carrying amount 343386866.06 416040485.62
(2) Significant dividends receivable aged more than 1 year
Whether bad debts
Name of Reason for not being have been incurred
31/12/2023 31/12/2022 Aging
investee recovered and the basis for
determination
Undergoing relevant
formalities expected to
Nanshan Group 129549000.00 111042000.00 1-2 years No
be recovered by the end
of 2024
(3) Changes in provision for credit loss of dividends receivable
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)
At 1 January 2023 416456.94 - - 416456.94
Balance at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year - - - -
Reversal for the year -72726.34 - - -72726.34
Transfer-out due to
derecognition of financial
----
assets (including direct
write-down)
Other changes - - - -
At 31 December 2023 343730.60 - - 343730.60
- 82 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.2 Dividends receivable - continued
(4) Details of bad debt provision
Changes for the year
Category 31/12/2022 Recovery or Charge-off or Other 31/12/2023
Provision
reversal write-off changes
Bad debt provision assessed
------
on an individual basis
Bad debt provision assessed
416456.94--72726.34--343730.60
on a portfolio basis
Total 416456.94 - -72726.34 - - 343730.60
7.3 Other receivables
(1) Aging analysis of other receivables
31/12/202331/12/2022
Aging Other Bad debt Proportion Other Bad debt Proportion
receivables provision (%) receivables provision (%)
Within 1 year 261380065.65 3386613.18 1.30 487428214.83 229150234.71 47.01
1-2 years 268634561.16 189669720.48 70.61 192100283.58 4690780.38 2.44
2-3 years 189029374.18 4675136.05 2.47 12444128.52 9740862.33 78.28
More than 3 years 834322127.22 759006530.55 90.97 844098122.57 759687263.40 90.00
Total 1553366128.21 956738000.26 1536070749.50 1003269140.82
(2) Disclosure of other receivables by nature
Item 31/12/2023 31/12/2022
Operation compensation (Note 1) 857551782.45 859677826.43
Advance payments 264603548.43 295592304.09
Land compensation (Note 2) 89630000.00 89630000.00
Guarantees and deposits 24853374.42 26402747.81
Special subsidy 24800000.00 31716257.00
Others 291927422.91 233051614.17
Sub-total 1553366128.21 1536070749.50
Less: Bad debt provision 956738000.26 1003269140.82
Total 596628127.95 532801608.68
Note 1: It represents the operation compensation receivable by a subsidiary of the Company
from the holding company of its minority shareholder in accordance with the agreement.As at 31 December 2023 a bad debt provision has been made for the accumulated
outstanding compensation amounting to RMB 857551782.45.Note 2: On 9 October 2021 Zhanjiang Port a subsidiary of the Company entered into the
Agreement on Recovery of State-owned Land Use Rights with the local government.Pursuant to the Agreement Zhanjiang Port shall return the land of approximately 195.68
mu located in Zhanjiang Comprehensive Bonded Zone on the east of Shugang Avenue
which is amounting to RMB 89630000.00. The above-mentioned land has been
returned before 31 December 2021. As at 31 December 2023 the above-mentioned land
compensation of RMB 89630000.00 has not been recovered yet.- 83 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(3) Provision for credit loss of other receivables
31/12/202331/12/2022
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 596631116.95 - - 596631116.95 532760873.61 - - 532760873.61
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 956735011.26 956735011.26 - - 1003309875.89 1003309875.89
Gross carrying amount —— 596631116.95 - 956735011.26 1553366128.21 532760873.61 - 1003309875.89 1536070749.50
Bad debt provision —— 2989.00 - 956735011.26 956738000.26 24451.35 - 1003244689.47 1003269140.82
Carrying amount —— 596628127.95 - - 596628127.95 532736422.26 - 65186.42 532801608.68
Significant other receivables for which bad debt provision is assessed on an individual basis (credit rating of D)
Name 31/12/2023 Bad debt provision ECL rate (%) Reason for provision
Entity 1 857551782.45 857551782.45 100.00 Expected to be unrecoverable (Note)
Entity 2 64841250.09 64841250.09 100.00 Expected to be unrecoverable
Entity 3 14000000.00 14000000.00 100.00 Expected to be unrecoverable
Others 20341978.72 20341978.72 100.00 Expected to be unrecoverable
Total 956735011.26 956735011.26 — — — —
Note: Refer to Note (VIII) 7.3(2).- 84 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(4) Provision reversal and write-off of credit loss of other receivables
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
At 1 January 2023 24451.35 - 1003244689.47 1003269140.82
Balance of other receivables
at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 6000.00 - -6000.00 -
Provision for the year 36129.03 - 3459687.18 3495816.21
Reversal for the year -27462.35 - -47267828.40 -47295290.75
Effect of changes in the scope of
-36129.03--545545.45-581674.48
consolidation
Charge-off for the year - - - -
Write-off for the year - - -73074.00 -73074.00
Other changes - - -2076917.54 -2076917.54
At 31 December 2023 2989.00 - 956735011.26 956738000.26
(5) Details of bad debt provision
Changes for the year 31/12/2023
Effect of
Category 01/01/2023 Recovery or changes in Charge-off Other
Provision
reversal the scope of or write-off changes
consolidation
Bad debt provision
assessed on an 1003244689.47 3459687.18 -47273828.40 -545545.45 -73074.00 -2076917.54 956735011.26
individual basis
Bad debt provision
assessed on a 24451.35 36129.03 -21462.35 -36129.03 - - 2989.00
portfolio basis
Total 1003269140.82 3495816.21 -47295290.75 -581674.48 -73074.00 -2076917.54 956738000.26
Among which the bad debt provision recovered or reversed for the period that is significant in
amount is listed as below:
Basis to determine the
Amount recovered original proportion of
Name Reason for retrieve Recovered through
or reversed bad debt provision and
its reasonableness
Improvement in debtor's Based on prior years'
Entity 4 47169811.32 Cash
operations financial position
Total 47169811.32
- 85 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
7.3 Other receivables - continued
(6) Write-off of other receivables in the year
Arising from
Procedures related party
Item Nature Amount Reason for write-off
performed transactions or
not
The counterparty was unable to make Write-off upon
Entity 5 Rents receivable 73074.00 No
payments approval
Total — — 7307—4. 0—0 — — — —
(7) The top five balances of other receivables at the end of the year classified by debtor
Closing
Proportion to
Name of Relationship with balance of
Nature 31/12/2023 Aging total other
entity the Group provision for
receivables (%)
credit loss
Operation Within 1 year more
Entity 1 Non-related party 857551782.45 55.21 857551782.45
compensation than 3 years
Advance Within 1 year 1-2
Entity 2 Non-related party 122674255.48 7.90 -
payments years 2-3 years
Land
Entity 3 Non-related party 89630000.00 2-3 years 5.77 -
compensation
Within 1 year 1-2
Advance
Entity 4 Non-related party 64841250.09 years 2-3 years 4.17 64841250.09
payments
more than 3 years
Advance
Entity 5 Non-related party 59698841.66 Within 1 year 3.84 -
payments
Total — — — — 1194396129.68 — — 76.89 922393032.54
8. Inventories
(1) Category of inventories
31/12/202331/12/2022
Provision for Provision for
Item Gross carrying Carrying Gross carrying Carrying
decline in value decline in value
amount amount amount amount
of inventories of inventories
Raw materials 217097512.98 1234628.38 215862884.60 196425573.04 1326130.64 195099442.40
Finished goods 2520205.91 - 2520205.91 17248970.37 - 17248970.37
Others 515102.36 - 515102.36 12774408.71 - 12774408.71
Total 220132821.25 1234628.38 218898192.87 226448952.12 1326130.64 225122821.48
(2) Provision for decline in value of inventories
Increase Decrease Effect of
translation of
financial
Category 1/1/2023 Reversal or 31/12/2023
Provision Others Others statements
charge-off
denominated in
foreign currencies
Raw materials 1326130.64 - - 99456.13 - 7953.87 1234628.38
- 86 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
8. Inventories - continued
(2) Provision for decline in value of inventories - continued
Provision for decline in value of inventories is made on an item-by-item basis and no provision for
decline in value of inventories is made on a portfolio basis. Provision for decline in value of
inventories is reversed in the current year due to the rebound in value of inventories.
(3) As at 31 December 2023 the Group has no capitalized borrowing cost in the balance of
inventories.
9. Non-current assets due within one year
(1) Presentation of non-current assets due within one year
Item 31/12/2023 31/12/2022
Long-term receivables due within one year 17468849.83 903128422.35
Less: Bad debt provision 17468.85 903128.42
Carrying amount 17451380.98 902225293.93
(2) Provision for bad debts
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
At 1 January 2023 903128.42 - - 903128.42
Gross carrying amount of long-term
receivables at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year 6200.00 - - 6200.00
Reversal for the year -891859.57 - - -891859.57
Transfer-out due to
derecognition of financial assets - - - -
(including direct write-down)
Other changes - - - -
At 31 December 2023 17468.85 - - 17468.85
(3) Details of bad debt provision
Changes for the year
Category 31/12/2022 Recovery or Charge-off or Other 31/12/2023
Provision
reversal write-off changes
Bad debt provision assessed
903128.426200.00-891859.57--17468.85
on a portfolio basis
Total 903128.42 6200.00 -891859.57 - - 17468.85
- 87 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
10. Other current assets
(1) Category of other current assets
Item 31/12/2023 31/12/2022
Input tax to be deducted and certified 115121766.13 70627183.33
Prepaid taxes 71771659.09 98329205.73
Others 2780075.65 16946751.47
Total 189673500.87 185903140.53
11. Long-term receivables
(1) Details of long-term receivables
31/12/2023 31/12/2022 Range of discount
Item Gross carrying Bad debt Carrying Gross carrying Bad debt Carrying rate at the end of
amount provision amount amount provision amount year
Advances to shareholders (Note 1) 1167470819.35 1167470.82 1166303348.53 3864736673.31 3864736.67 3860871936.64 3.65%-8.50%
Guarantees for finance leases 10695876.01 10695.88 10685180.13 10659515.88 10659.52 10648856.36 0-5.37%
Land compensation receivable (Note 2) 2691932000.00 - 2691932000.00 2692032000.00 - 2692032000.00 -
Others 4996969.31 - 4996969.31 - - - -
Total 3875095664.67 1178166.70 3873917497.97 6567428189.19 3875396.19 6563552793.00 -
Less: Long-term receivables
17468849.8317468.8517451380.98903128422.35903128.42902225293.93-
due within 1 year
Long-term receivables due after 1 year 3857626814.84 1160697.85 3856466116.99 5664299766.84 2972267.77 5661327499.07 -
Note 1: It mainly represents the aggregate principal and interest receivable from Port of Newcastle
and Terminal Link SAS equivalent to RMB 921402438.00 and 211768361.35
respectively.On 14 June 2018 China Merchants Port Holdings Company ("CM Port") a subsidiary of
the Company provided a long-term loan to Port of Newcastle which matures in 2023 and
has been extended to 31 December 2034 as stipulated in an agreement entered into during
the year. The loan carries interest at a rate of weighted average interest rate on debt as
determined by local authority of Port of Newcastle plus 0.5%.On 31 May 2023 CM Port a subsidiary of the Company provided a long-term loan to
Terminal Link SAS for making additional capital injection to Saigang project and charged
interest to Terminal Link SAS at an interest rate of 6.15%.Note 2: On 5 November 2019 Shantou CM Port Group Co. Ltd. ("Shantou Port") entered into
the Contract for the Acquisition of State-Owned Land Use Rights in Shantou with Shantou
Land Reserve Center. Pursuant to the contract the land and attached buildings of
approximately 370.96 mu located in Zhuchi Deepwater Port on the south of Zhongshan
East Road of Shantou should be returned to Shantou Land Reserve Center by Shantou
Port which is amounting to RMB1558032000.00. Among them 183.63 mu of land and
attached buildings have been transferred in 2019 and the remaining 187.33 mu of land
and attached buildings have been transferred in 2020. As at 31 December 2023 the land
compensation totalling RMB1158032000.00 has not yet been recovered.- 88 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
(1) Details of long-term receivables - continued
Note 2: - continued
On 21 August 2020 Shantou Port entered into the Contract for the Acquisition of State-
Owned Land Use Rights in Shantou with Land Reserve Center of Shantou Haojiang
District. Pursuant to the contract the land and attached buildings of approximately 152.34
mu located in Yutianwen Queshi Haojiang District Shantou should be returned to Land
Reserve Center of Shantou Haojiang District by Shantou Port which is amounting to
RMB250000000.00. The transfer of above-mentioned land and attached buildings was
completed before 31 December 2020. As at 31 December 2023 the land compensation
totalling RMB200000000.00 has not yet been recovered.On 22 December 2020 Shantou Port entered into the Contract for the Acquisition of State-
Owned Land Use Rights in Shantou with Shantou Land Reserve Center. Pursuant to the
contract the land and attached buildings of approximately 648.78 mu located in Zhuchi
Deepwater Port of Shantou should be returned to Shantou Land Reserve Center by
Shantou Port which is amounting to RMB2724876000.00. Among them 320 mu of
land and attached buildings were transferred by 31 December 2020 which is amounting
to RMB1344000000.00 and the remaining 328.78 mu of land and attached buildings
have not been transferred. As at 31 December 2023 the land compensation totalling RMB
1333900000.00 has not yet been recovered.
(2) Long-term receivables disclosed by method of bad debt provision
31 December 2023 31 December 2022
Gross carrying amount Bad debt provision Gross carrying amount Bad debt provision
Category Carrying
Proportion Proportion Proportion Proportion Carrying amount
Amount Amount amount Amount Amount
(%)(%)(%)(%)
Bad debt provision assessed
3875095664.67100.001178166.700.033873917497.976567428189.19100.003875396.190.066563552793.00
on a portfolio basis
Total 3875095664.67 100.00 1178166.70 — — 3873917497.97 6567428189.19 100.00 3875396.19 — — 6563552793.00
Bad debt provision assessed on a portfolio basis
31 December 2023
Name
Accounts receivable Bad debt provision Proportion (%)
A 3875095664.67 1178166.70 0.03
Total 3875095664.67 1178166.70 — —
- 89 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term receivables - continued
(3) Provision for credit loss of long-term receivables
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
At 1 January 2023 3875396.19 - - 3875396.19
Gross carrying amount of
long-term receivables
at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year 921438.82 - - 921438.82
Reversal for the year -3618668.31 - - -3618668.31
Charge-off for the year - - - -
Write-off for the year - - - -
Other changes - - - -
At 31 December 2023 1178166.70 - 1178166.70
(4) Details of bad debt provision
Changes for the year
Effect of
Category 1/1/2023 Recovery or Charge-off or changes in the 31/12/2023
Provision
reversal write-off scope of
consolidation
Advances to shareholders 3864736.67 921402.46 -3618668.31 - - 1167470.82
Guarantees for finance
10659.5236.36---10695.88
leases
Land compensation
------
receivable
Others - - - - - -
Total 3875396.19 921438.82 -3618668.31 - - 1178166.70
(5) There are no long-term receivables written off during the year.
- 90 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term equity investments
(1) Details of long-term equity investments
Changes for the year
Effect of Closing
Reconciliation
Accounting Investment Cash dividends Provision translation of balance of
Investees 31/12/2022 of other Other equity 31/12/2023
method Increase Decrease income under or profits Others for financial statements provision for
comprehensive movements
equity method declared impairment denominated in impairment
income
foreign currencies
I. Joint ventures
Euro-Asia Oceangate S.à r.l. Equity method 2787204745.37 - - 186208262.73 -847649041.64 - -123177188.28 - - 43254636.78 2045841414.96 -
Port of Newcastle Equity method 2048681775.65 - - -10864327.20 -22300558.83 - - - - 59506810.29 2075023699.91 -
Others Equity method 4880906534.70 5720923.74 -33913627.22 221260745.53 -9322791.00 -1228997.17 -239356160.34 - - 13061592.11 4837128220.35 -
Sub-total 9716793055.72 5720923.74 -33913627.22 396604681.06 -879272391.47 -1228997.17 -362533348.62 - - 115823039.18 8957993335.22 -
II. Associates
Shanghai International Port (Group)
Co. Ltd. (hereinafter referred to Equity method 34171898201.17 - - 3700844097.27 -15345010.77 269871649.40 -914383798.30 - - - 37212885138.77 -
as "Shanghai Port Group")
Nanshan Group Equity method 6377197726.21 - - 214805574.66 43279577.18 757245.35 -74028000.00 - - -2767082.88 6559245040.52 -
Terminal Link SAS Equity method 6395609168.37 - - 221059137.39 110006179.63 - -381826231.04 - - 108192659.85 6453040914.20 -
Liaoning Port Co. Ltd. ("Liaoning Port")
Equity method 4021162878.74 - - 151571456.52 1605319.83 2186919.86 -47236402.20 - - -5132381.49 4124157791.26 359989686.74（Note）
Shenzhen China Merchants Qianhai
Equity method 7403186521.01 - - 42538797.17 - - - - - - 7445725318.18 -
Industrial Development Co. Ltd.Ningbo Zhoushan Port Company Limited
Equity method 17974630545.05 - - 1049986813.85 20609205.32 -23196655.58 -390875794.33 - - - 18631154114.31 -
("Ningbo Zhoushan")
Others Equity method 6303815822.78 892560547.98 -5123348.92 201597028.04 -15914070.05 -191087.11 -128730841.44 - - 33902072.53 7281916123.81 2344389.02
Sub-total 82647500863.33 892560547.98 -5123348.92 5582402904.90 144241201.14 249428071.92 -1937081067.31 - - 134195268.01 87708124441.05 362334075.76
Total 92364293919.05 898281471.72 -39036976.14 5979007585.96 -735031190.33 248199074.75 -2299614415.93 - - 250018307.19 96666117776.27 362334075.76
Note: The provision for the impairment of Liaoning Port is made in previous years. No evidence of impairment was found this year and no
impairment test was conducted.- 91 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term equity investments - continued
(2) Impairment testing of significant long-term equity investments
The recoverable amount is determined at the present value of expected future cash flows
Basis to determine the
Recoverable Projection Key parameters for Basis to determine the key
Item Carrying amount parameters for projection Key parameters for steady period
amount period projection period parameters for steady period
period
The discount rate is a pre-tax
discount rate that reflects the
Terminal Link Pre-tax discount rate Perpetual growth rate Forward inflation rate published by
6453040914.20 7453973943.83 5 years specific risks of the
SAS(note) 7.8%~12.2% 1.559%~5.010% BNP Paribas
underlying asset group or
combination of asset groups
Note: The Terminal Link SAS Asset Group consists of five asset groups which are tested for impairment during the year with no impairment identified.- 92 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
13. Investments in other equity instruments
(1) Details of investments in other equity instruments
Changes for the year
Reasons for
Gains Losses Accumulated Accumulated
Dividend designation as at
included in included in Effect of gains included in losses included
income fair value through
Item 1/1/2023 other other changes in the 31/12/2023 other in other
Addition Reduction recognized for other
comprehensi comprehen scope of comprehensive comprehensive
the year comprehensive
ve income for sive income consolidation income income
income
the year for the year
It is a non-trading
China Ocean Shipping Agency
144301178.28 - - 3387985.97 - - 147689164.25 20056500.00 134179164.25 - equity instrument
Shenzhen Co. Ltd.investment
It is a non-trading
Others 27644096.74 - - 33084.28 -215602.37 -17689094.74 9772483.91 - 3873283.91 -3128300.00 equity instrument
investment
Total 171945275.02 - - 3421070.25 -215602.37 -17689094.74 157461648.16 20056500.00 138052448.16 -3128300.00 ——
(2) There are no other equity instruments derecognized for the year.
Accumulated gains transferred to Accumulated losses transferred to
Item Reason for derecognition
retained earnings due to derecognition retained earnings due to derecognition
Others - - Changes in the scope of consolidation
Total - - — —
- 93 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
14. Other non-current financial assets
Item 31/12/2023 31/12/2022
Financial assets at FVTPL 877576442.83 1745740896.41
Including: Investments in equity instruments 877576442.83 1745740896.41
Including: Antong Holdings Co. Ltd.-950321309.06
("Antong Holdings") (Note)
Qingdao Port International Co. Ltd. 850222729.23 767553775.66
Others 27353713.60 27865811.69
Note: As at 31 December 2023 the Company and Zhanjiang Zhongli Ocean Shipping Tally Co.Ltd. a subsidiary of the Company together hold 6.83% equity interest in Antong Holdings
and has appointed one director to Antong Holdings. Therefore the Company has significant
influence over Antong Holdings and has changed its equity investment in Antong Holdings
from other non-current financial assets to long-term equity investments in an associate.
15. Investment properties
(1) Investment properties measured at cost
Buildings and
Item Land use rights Total
structures
I. Cost
1. At 1 January 2023 128269825.38 6177602852.51 6305872677.89
2. Increase for the year 8388170.37 13843232.32 22231402.69
(1) Purchases - 1002852.62 1002852.62
(2) Transfer from fixed assets - 12840379.70 12840379.70
(3) Transfer from intangible assets 8388170.37 - 8388170.37
3. Decrease for the year - - -
4. At 31 December 2023 136657995.75 6191446084.83 6328104080.58
II. Accumulated depreciation
and amortization
1. At 1 January 2023 43054991.58 1139127566.75 1182182558.33
2. Increase for the year 4514324.10 183032229.36 187546553.46
(1) Provision for the year 2571200.74 180261875.48 182833076.22
(2) Transfer from fixed assets - 2770353.88 2770353.88
(3) Transfer from intangible assets 1943123.36 - 1943123.36
3. Decrease for the year - - -
4. At 31 December 2023 47569315.68 1322159796.11 1369729111.79
III. Impairment provision
1. At 1 January 2023 - - -
2. Increase for the year - - -
3. Decrease for the year - - -
4. At 31 December 2023 - - -
IV. Carrying amount
1. At 31 December 2023 89088680.07 4869286288.72 4958374968.79
2. At 1 January 2023 85214833.80 5038475285.76 5123690119.56
- 94 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Investment properties - continued
(2) Investment properties without ownership certificates
Carrying amount at Carrying amount at Reasons for not obtaining Expected time of
Item
31/12/2023 31/12/2022 certificate of title completion
Some buildings and structures
Buildings structures The certificate of title is
24363424.74 24008665.10 have not yet obtained
and land use rights underway
certificates of land use rights
16. Fixed assets
16.1 Summary of fixed assets
Item 31/12/2023 31/12/2022
Fixed assets 28986501937.59 32033317707.66
Disposal of fixed assets 36388.76 8375.84
Total 28986538326.35 32033326083.50
16.2 Fixed assets
(1) Details of fixed assets
Machinery and
Port and terminal Buildings and equipment Motor vehicles and
Item Total
facilities structures furniture fixture cargo ships
and other equipment
I. Cost — — — — — — — — — —
1. At 1 January 2023 33376255522.14 2027195029.06 17467174796.88 2314581094.83 55185206442.91
2. Increase for the year 355653533.35 5819641.52 946224073.20 15977020.14 1323674268.21
(1) Purchase 37782655.58 31964.06 322325677.27 13660825.82 373801122.73
(2) Transfer from development expenditure 6341635.07 - 8723850.63 - 15065485.70
(3) Transfer from construction in progress 311529242.70 1453075.86 344378153.65 2316194.32 659676666.53
(4) Transfer from right-of-use assets - - 270796391.65 - 270796391.65
(5) Transfer from other accounts - 4334601.60 - - 4334601.60
3. Decrease for the year 2763230873.66 261672874.02 1842920457.17 60681086.42 4928505291.27
(1) Disposal or retirement 42219921.65 16064482.96 139255106.92 52104672.51 249644184.04
(2) Transfer to investment properties - 12840379.70 - - 12840379.70
(3) Effect of changes in the scope of consolidation 2720840274.13 232768011.36 1701179778.57 8576413.91 4663364477.97
(4) Transfer to right-of-use assets 170677.88 - 2485571.68 - 2656249.56
4. Adjustments to the amount carried forward -1058728.12 - 184445.13 83718.00 -790564.99
5. Reclassification -57793950.52 51434642.27 6359308.25 - -
6. Effect of translation of financial statements
227485569.312918280.50164288140.6013423975.49408115965.90
denominated in foreign currencies
7. At 31 December 2023 31137311072.50 1825694719.33 16741310306.89 2283384722.04 51987700820.76
II. Accumulated depreciation — — — — — — — — — —
1. At 1 January 2023 10720998321.19 635722974.00 10636302077.50 1095290493.80 23088313866.49
2. Increase for the year 963017607.23 78532518.38 930468443.58 108868177.01 2080886746.20
(1) Provision 963017607.23 74197916.78 837465030.34 108868177.01 1983548731.36
(2) Transfer from right-of-use assets - - 93003413.24 - 93003413.24
(3) Transfer from other accounts - 4334601.60 - - 4334601.60
3. Decrease for the year 1131042660.07 90575216.73 1243641341.44 55932196.77 2521191415.01
(1) Disposal or retirement 31267071.50 14971013.85 121150414.20 49154025.33 216542524.88
(2) Transfer to investment properties - 2770353.88 - - 2770353.88
(3) Effect of changes in the scope of consolidation 1099775588.57 72833849.00 1122490927.24 6778171.44 2301878536.25
4. Reclassification -1509396.69 625422.16 883974.53 - -
5. Effect of translation of financial statements
46017171.79713896.6388553012.494401121.50139685202.41
denominated in foreign currencies
6. At 31 December 2023 10597481043.45 625019594.44 10412566166.66 1152627595.54 22787694400.09
III. Impairment provision — — — — — — — — — —
1. At 1 January 2023 57546986.63 5985164.85 42717.28 - 63574868.76
2. Increase for the year 138917159.59 3429362.62 7577097.23 - 149923619.44
3. Disposal or retirement for the year - - - - -
4. Effect of translation of financial statements
--5994.88-5994.88
denominated in foreign currencies
5. At 31 December 2023 196464146.22 9414527.47 7625809.39 - 213504483.08
IV. Carrying amount — — — — — — — — — —
1. At 31 December 2023 20343365882.83 1191260597.42 6321118330.84 1130757126.50 28986501937.59
2. At 1 January 2023 22597710214.32 1385486890.21 6830830002.10 1219290601.03 32033317707.66
- 95 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Fixed assets - continued
16.2 Fixed assets - continued
(2) The Group has no fixed assets that are temporarily idle as at 31 December 2023.
(3) Fixed assets leased out under operating leases
Carrying amount at Carrying amount at
Item
31/12/202331/12/2022
Buildings and structures 190979949.85 196480507.61
Port and terminal facilities 35709105.32 33260157.31
Machinery and equipment furniture fixture and other equipment 5012091.76 7920761.45
Total 231701146.93 237661426.37
(4) Fixed assets without ownership certificates
Carrying amount at Carrying amount at
Item Remark
31/12/202331/12/2022
This is mainly due to the fact that certain buildings
Buildings structures
and structures have not yet obtained the land use
port and terminal 1539024375.12 1786308720.95
rights of the corresponding land and the approval
facilities
procedures have not yet been completed.
(5) Details of fixed assets depreciated but still in use and temporarily idle at the end of the year
and fixed assets disposed and retired in the year:
Item Amount Remark
Cost of fixed assets fully depreciated but still in use
4947824713.22
at the end of the year
Cost of fixed assets temporarily idle at the end of the year -
Fixed assets disposed and retired in the year: — — — —
Including: Cost of fixed assets disposed and retired in the year 249644184.04
Net book value of fixed assets disposed and retired in the year 33101659.16
Loss on disposal or retirement of fixed assets in the year 18876795.60
(6) The details of the Group's fixed assets with restricted ownership as at 31 December 2023
are set out in Note (VIII) 64.
(7) Impairment testing of fixed assets
The recoverable amount is determined at the present value of expected future cash flows
Key parameters Key Basis to determine the
Carrying Recoverable Amount of Projection
Item for projection parameters for key parameters for
amount amount impairment period
period steady period steady period
Perpetual China's forward inflation
Zhoushan RoRo Asset Pre-tax discount
397078829.12 208048600.00 189030229.12 10 years growth rate rate published by the
Group (Note) rate 12.01%
2.20% World Bank
Total 397078829.12 208048600.00 189030229.12 — — — — — — — —
- 96 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
16. Fixed assets - continued
16.2 Fixed assets - continued
(7) Impairment testing of fixed assets - continued
Note: Zhoushan RoRo Asset Group include fixed assets and intangible assets of which fixed
assets are impaired at the amount of RMB 147557081.15 and intangible assets are
impaired at the amount of RMB 41473147.97.
16.3 Disposal of fixed assets
Item 31/12/2023 31/12/2022
Machinery and equipment furniture fixture
36388.768375.84
and other equipment
Total 36388.76 8375.84
17. Construction in progress
(1) Presentation of construction in progress
Item 31/12/2023 31/12/2022
Construction in progress 2907014186.24 2405872478.61
Materials for construction of fixed assets 2803095.22 7971929.03
Total 2909817281.46 2413844407.64
(2) Details of construction in progress
31/12/202331/12/2022
Item Gross carrying Provision for Carrying Gross carrying Provision for Carrying
amount impairment amount amount impairment amount
Port and terminal
2380800758.33-2380800758.331991321268.14-1991321268.14
facilities
Infrastructure 252638193.22 - 252638193.22 201444537.67 - 201444537.67
Berths and yards 178174354.90 - 178174354.90 18728577.14 - 18728577.14
Cargo ships under
1726548.68-1726548.68---
construction
Others 93674331.11 - 93674331.11 194378095.66 - 194378095.66
Total 2907014186.24 - 2907014186.24 2405872478.61 - 2405872478.61
- 97 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress - continued
(3) The top ten balances of construction in progress
Effect of
translation of Proportion of Interest
Amount of Including:
Other financial accumulated capitalizatio
Increase for Transfer to Construction accumulated Capitalized Capital
Item Budget amount 31/12/2022 decreases for statements 31/12/2023 construction n rate for
the year fixed assets progress (%) capitalized interest for source
the year denominated investment in the current
interest the year
in foreign budget (%) year (%)
currencies
Reconstruction project of HIPG Own funds
2817485265.02817365084.37---13860209.69831225294.0657.6857.68942888.05--
container oil terminal and tank area and loans
Phase I project for the stuffing and
Own funds
destuffing service area of Baoman Port 683007100.00 269045354.01 227860991.66 - - - 496906345.67 72.75 72.75 29908415.82 10355373.62 3.50
and loans
Area Zhanjiang Port
General cargo terminal project at
Own funds
Donghai Island Port Area of 905348400.00 448877835.04 67384.80 - - - 448945219.84 49.59 49.59 44364372.49 - -
and loans
Zhanjiang Port
Phase I expansion project for the
Own funds
container terminal at Baoman Port Area 2342775800.00 191463684.57 37101454.78 - - - 228565139.35 9.76 9.76 1011370.60 57750.00 3.30
and loans
Zhanjiang Port
TCP tire-type container crane project 211491137.08 16222603.92 138123291.50 6430507.98 - 6438252.61 154353640.05 76.02 76.02 - - - Own funds
Subsequent construction work in progress at
84992400.00 28006814.86 56051165.83 16985386.70 3212066.78 657829.52 64518356.73 99.67 99.67 - - - Own funds
HIPG terminal
Back land reclamation project on
Haidagan Bulk Yard and Supporting 82400000.00 60576339.80 1674220.80 - - - 62250560.60 75.55 75.55 - - - Own funds
Facilities and Liquid Bulk Berth
Installation project of bucket-wheel stacker Own funds
74800000.0051551526.93837359.25---52388886.1870.0470.042671994.44837359.253.50
reclaimer Zhanjiang Port and loans
AMPLIACAO PLATAFORMAS REEFER 71524388.49 - 53555672.30 6045103.81 - 1479878.70 48990447.19 76.95 76.95 - - - Own funds
Dachanwan phase II project 918521317.23 24872917.72 21319643.76 - - - 46192561.48 5.03 5.03 - - - Own funds
Total 8192345807.82 1907982161.22 536591184.68 29460998.49 3212066.78 22436170.52 2434336451.15 — — — — 78899041.40 11250482.87 — —
- 98 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
17. Construction in progress - continued
(4) Materials for construction of fixed assets
31/12/202331/12/2022
Gross Gross
Item Provision for Carrying Provision for Carrying
carrying carrying
impairment amount impairment amount
amount amount
Materials for construction
2803095.22-2803095.227971929.03-7971929.03
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
Consult the expected
Pre-tax discount Perpetual
HIPG Asset Group 9116161496.49 51365680683.52 - 5 years growth rate of the
rate 7.55% growth rate 7%
industry
Total 9116161496.49 51365680683.52 -
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. At 1 January 2023 7414725804.49 174746285.16 361404132.03 2833468093.15 15456422.12 10799800736.95
2. Increase for the year 126996462.16 47184328.34 5908348.40 314033487.98 5119357.99 499241984.87
(1) Purchase 126825784.28 47184328.34 3422776.72 314033487.98 5119357.99 496585735.31
(2) Others 170677.88 - 2485571.68 - - 2656249.56
3. Decrease for the year 83575652.80 14851420.78 277492044.42 - 8251408.84 384170526.84
(1) Termination of lease 83575652.80 13723966.87 6695652.77 - 8251408.84 112246681.28
(2) Decrease due to change in the
-1127453.91---1127453.91
scope of consolidation
(3) Transfer to fixed assets - - 270796391.65 - - 270796391.65
4. Effect of translation of financial
statements denominated in foreign 104207338.95 2294309.58 594918.95 49298269.33 - 156394836.81
currencies
5. At 31 December 2023 7562353952.80 209373502.30 90415354.96 3196799850.46 12324371.27 11071267031.79
II. Accumulated depreciation — — — — — — — — — — — —
1. At 1 January 2023 940705350.30 59749857.79 119454049.67 326945093.98 10304162.88 1457158514.62
2. Increase for the year 262536189.49 24038515.68 20649140.40 46180031.37 4099083.51 357502960.45
(1) Provision 262536189.49 24038515.68 20649140.40 46180031.37 4099083.51 357502960.45
3. Decrease for the year 80201819.61 14365794.00 99372627.07 - 8251408.84 202191649.52
(1) Termination of lease 80201819.61 13538700.80 6369213.83 - 8251408.84 108361143.08
(2) Transfer to fixed assets - - 93003413.24 - - 93003413.24
(3) Decrease due to change in the
-827093.20---827093.20
scope of consolidation
4. Effect of translation of financial
statements denominated in foreign 10472990.85 495286.98 558342.85 5602274.34 - 17128895.02
currencies
5. At 31 December 2023 1133512711.03 69917866.45 41288905.85 378727399.69 6151837.55 1629598720.57
III. Impairment provision — — — — — — — — — — — —
1. At 1 January 2023 - - - - - -
2. Increase for the year - - - - - -
3. Decrease for the year - - - - - -
4. At 31 December 2023 - - - - - -
IV. Carrying amount — — — — — — — — — — — —
1. At 31 December 2023 6428841241.77 139455635.85 49126449.11 2818072450.77 6172533.72 9441668311.22
2. At 1 January 2023 6474020454.19 114996427.37 241950082.36 2506522999.17 5152259.24 9342642222.33
- 99 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Intangible assets
(1) Details of intangible assets
Terminal
Item Land use rights Others Total
management rights
I. Cost — — — — — — — —
1. At 1 January 2023 15314517408.67 9033916504.04 1500585297.68 25849019210.39
2. Increase for the year 4829976.87 70899565.34 210116533.73 285846075.94
(1) Purchase 4707118.86 70899565.34 204248227.46 279854911.66
(2) Transfer from R&D expenditure - - 279255.32 279255.32
(3) Other increase 122858.01 - 5589050.95 5711908.96
3. Decrease for the year 1391040555.28 - 97786230.03 1488826785.31
(1) Disposal 117561406.55 - 12263934.48 129825341.03
(2) Effect of changes in the scope of
1242052238.36-85144042.521327196280.88
consolidation
(3) Transfer to investment properties 8388170.37 - - 8388170.37
(4) Other decrease 23038740.00 - 378253.03 23416993.03
4. Effect of translation of financial
statements denominated in foreign 3238376.56 614328132.15 55732509.00 673299017.71
currencies
5. At 31 December 2023 13931545206.82 9719144201.53 1668648110.38 25319337518.73
II. Accumulated amortization — — — — — — — —
1. At 1 January 2023 4096452545.66 1897700710.79 562263716.23 6556416972.68
2. Increase for the year 337512145.19 265684203.80 83683325.73 686879674.72
(1) Provision 337512145.19 265684203.80 83683325.73 686879674.72
(2) Other increase - - - -
3. Decrease for the year 136784782.90 - 70286984.40 207071767.30
(1) Disposal 24240728.18 - 12642187.51 36882915.69
(2) Transfer to investment properties 1943123.36 - - 1943123.36
(3) Effect of changes in the scope of
110600931.36-57644796.89168245728.25
consolidation
(4) Other decrease - - - -
4. Effect of translation of financial
statements denominated in foreign 1454778.05 131353162.92 20232242.87 153040183.84
currencies
5. At 31 December 2023 4298634686.00 2294738077.51 595892300.43 7189265063.94
III. Impairment provision — — — — — — — —
1. At 1 January 2023 15537122.10 - - 15537122.10
2. Increase for the year 28662259.14 - 12810888.83 41473147.97
3. Decrease for the year - - - -
4. At 31 December 2023 44199381.24 - 12810888.83 57010270.07
IV. Carrying amount — — — — — — — —
1. At 31 December 2023 9588711139.58 7424406124.02 1059944921.12 18073062184.72
2. At 1 January 2023 11202527740.91 7136215793.25 938321581.45 19277065115.61
(2) Land use rights without ownership certificates as at 31 December 2023:
Carrying amount Carrying amount
Item
at 31/12/2023 at 31/12/2022
Land use rights (Note) 2374139495.63 2511195386.58
- 100 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
19. Intangible assets - continued
(2) Land use rights without ownership certificates as at 31 December 2023: - continued
Note: At 31 December 2023 the land use rights without ownership certificates mainly represent
the land use rights for berth and storage yard within Chiwan Port area obtained by the Group
from Nanshan Group with an area of 691828.56 m2 and Dachanwan Port area Phase II
land use rights obtained by ASJ the costs of which are RMB 1179949191.44 and RMB
918521317.23 respectively.
The land use rights for berth and storage yard within Chiwan Port area obtained by the
Group from Nanshan Group represent the capital contribution from Nanshan Group to the
Company upon restructuring of the Company while the remaining land use rights are
obtained from Nanshan Group by way of long-term lease. Up to date Nanshan Group has
not yet obtained the land use rights in respect of the lands within Chiwan watershed
including aforementioned capital contribution and land lease to the Group therefore the
Group cannot obtain the ownership certificate for relevant land and buildings on such land.The Company's management understood that Nanshan Group is negotiating with relevant
government departments regarding the historical issues and the date when the Group can
obtain the ownership certificate of relevant land and buildings on such land cannot be
estimated reliably.ASJ is negotiating with relevant government departments for handling the ownership
certificates of Dachanwan Port area Phase II land use rights obtained by it.
(3) Impairment testing of intangible assets
Refer to Note (VIII) 16.2 (7) for details.
20. Goodwill
(1) Details of goodwill
Effect of translation
of financial
Investee Sources 31/12/2022 Increase Decrease statements 31/12/2023
denominated in
foreign currencies
TCP Acquisition of equity 2716399522.38 - - 270072549.76 2986472072.14
Mega Shekou Container
Acquisition of equity 1815509322.42 - - - 1815509322.42
Terminals Limited ("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
Ningbo Daxie Container Terminal
Co. Ltd. (formerly known as Ningbo Consolidation of associate
188497194.41-188497194.41--
Daxie China Merchants International into subsidiary
Terminals Co. Ltd.) ("Ningbo Daxie")
Others Acquisition of equity 288255850.88 - - - 288255850.88
Sub-total — — 7382089935.42 - 188497194.41 270072549.76 7463665290.77
Provision for impairment of goodwill — — 970663044.33 - - - 970663044.33
Total — — 6411426891.09 - 188497194.41 270072549.76 6493002246.44
- 101 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Goodwill - continued
(2) Provision for impairment of goodwill
Effect of
translation of
financial
Investee 31/12/2022 Provision Decrease 31/12/2023
statements
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
The Group identifies asset groups or portfolio of asset
Mega SCT Yes
groups based on their ability to generate cash inflows
CM Port Yes
independently the manner in which they manage their
Shantou Port Yes
production and operating activities (primarily by
Zhanjiang Port Yes
geographic region) and the unified decision-making on
Shenzhen Mawan Project Yes
use or disposal of assets.Others Yes
When testing the goodwill for impairment the Group compares the carrying amount of related asset
groups and portfolio of asset groups (including goodwill) with the recoverable amount. If the
recoverable amount is less than the carrying amount the difference is included in profit or loss for
the period. The Group determines the recoverable amount of the asset groups and portfolio of asset
groups that generate goodwill at fair value less cost of disposal or at present value of expected future
cash flows. The fair value is determined using market approach. The present value of cash flows is
estimated based on the forecast of cash flows for 5 years to 25 years detailed forecast period and
subsequent forecast period. The estimated future cash flows for the detailed forecast period are
based on the business plan established by the management; the expected future cash flows for the
subsequent forecast period are determined in conjunction with the level of the final year of the
detailed forecast period combined with the Group's business plans industry trends and inflation
rates. The growth rate adopted will not exceed the long-term average growth rate of the country
where the asset groups and portfolio of asset groups are located. The key assumptions used by the
Group in estimating the present value of future cash flows include growth rate and discount rate etc.The pre-tax discount rate and the growth rate for subsequent forecast period adopted in 2023 are
10.97%-21.99% and 2.20%-3.02% respectively. The parameters of key assumptions determined by
the Group's management are in line with the Group's historical experience or external source of
information.- 102 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Goodwill - continued
(4) Specific method for determination of recoverable amount
The recoverable amount is determined at the present value of expected future cash flows
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: 12.23% 1. The discount rate is a pre-tax discount 1. Pre-tax discount rate: 12.23% 1. The discount rate is a pre-tax discount rate that
2. Average revenue growth rate for rate that reflects the specific risks of the 2. Average revenue growth rate reflects the specific risks of the underlying asset
Mega SCT 5 years projection period: 3.35% underlying asset group or combination for steady period: 2.20% group or combination of asset groups.
3. Average profit margin for of asset groups. 3. Average profit margin for 2. Average revenue growth rate for steady period:
projection period: 37.58% 2. Average revenue growth rate for steady period: 42.89% China's forward inflation rate published by the
projection period and average profit World Bank (TCP refers to Brazil's forward inflation
1. Pre-tax discount rate: 21.99% 1. Pre-tax discount rate: 21.99%
margin for projection period: Taking rate published by the World Bank)
2. Average revenue growth rate for 2. Average revenue growth rate
into account comprehensive factors such 3. Average profit margin for steady period: Taking
TCP 25 years projection period: 5.36% for steady period: 3.02%
as each company's business operations into account comprehensive factors such as each
3. Average profit margin for 3. Average profit margin for
performance key financial indicators company's business operations performance key
projection period: 53.33% steady period: 54.81%
and market environment financial indicators and market environment
- 103 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
21. Long-term prepaid expenses
Presentation of long-term prepaid expenses:
Effect of
Reason for
changes in Increase for Amortization Other
Item 31/12/2022 31/12/2023 other
the scope of the year in the year decreases
decreases
consolidation
Tonggu channel widening project
455446696.75--14449031.76-440997664.99——
(Note 1)
Reclassify to
West public channel widening
249437402.87 - - 9919028.64 1538430.04 237979944.19 dredging
project at West port area (Note 2)
project
Dredging project 69760419.37 - 26871419.28 17342403.61 - 79289435.04 — —
Relocation project of Nanhai Rescue — —
37554111.50--1107368.40-36446743.10
Bureau
Transfer to
Expenditures for the improvement of
20631173.37 - 3920837.53 2374618.58 82477.87 22094914.45 inventory
leased fixed assets
account
Others 153527101.04 -8905237.72 80141950.88 47779010.68 - 176984803.52 — —
Total 986356904.90 -8905237.72 110934207.69 92971461.67 1620907.91 993793505.29 — —
Note 1: This represents the Group's actual expenses on Shenzhen Western Port Area Tonggu
Channel 210-270M Widening Project. According to relevant resolutions of Shenzhen
Municipal Government the enterprise and government shall bear 60% and 40% of the
expenses incurred for the 210-240M widening project and 50% and 50% of the expenses
incurred for the 240-270M widening project respectively. The Company's subsidiary has
included the expenses on deepening the channel in the item of "long-term prepaid
expenses" and amortized such expenses over the expected useful lives of the two
widening projects of 35 and 40 years using straight-line method since the completion of
each project in 2008 and 2019 respectively.Note 2: This represents the Group's actual expenses on Shenzhen West Port Area Public Channel
Widening Project of which the widening of 240-270M in the first section was completed
on 1 June 2019 and the widening of 240-270M in the second and third sections was
completed on 5 November 2020. According to relevant resolutions of Shenzhen Municipal
Government the enterprise and government shall bear 50% and 50% of the expenses
incurred for the project respectively. The Company's subsidiary has included the expenses
on deepening the channel in the item of "long-term prepaid expenses" and amortized such
expenses over the expected useful life of 40 years using straight-line method since the
completion of each section of the channel widening project.- 104 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Deferred income tax
(1) Deferred tax assets before offsetting
31/12/2023 31/12/2022 (Restated)
Deductible Deductible
Item Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Lease liabilities 812240581.51 218145932.73 582736512.28 164262934.19
Unrealized profit 749254178.80 183009204.87 756772558.79 184729651.97
Terminal operating right 714547999.18 214364399.78 702633317.13 210789995.14
Depreciation of fixed assets 162352087.79 40588021.95 154724225.49 35753675.92
Provision for credit loss 151277238.51 32071347.97 190727520.03 35544695.31
Accrued and unpaid wages 126623677.19 27883418.55 161026788.29 35802355.38
Provisions 85590059.41 29100620.20 35365156.43 12024153.19
Deductible losses 43785085.09 10946271.43 182211924.34 40193891.36
Deferred income 39203663.56 9101072.49 36723054.56 8709144.22
Amortization of computer software 7345031.20 1836257.80 9291532.77 2322883.19
Provision for impairment of assets 6698523.93 1555485.91 5507073.16 1376768.29
Organization costs 1028867.64 257216.91 3498150.00 874537.50
Others 70987022.41 18570226.51 57124137.75 15595505.07
Total 2970934016.22 787429477.10 2878341951.02 747980190.73
(2) Deferred tax liabilities before offsetting
31/12/2023 31/12/2022 (Restated)
Item Taxable temporary Deferred tax Taxable temporary Deferred tax
differences liabilities differences liabilities
Withholding dividend income tax 41551214196.81 2840377397.22 37565601815.13 2568624605.88
Lease business 1017854192.39 282003933.26 783000219.10 224483346.07
Terminal operating right 307617857.01 92285357.10 302488503.92 90746551.18
Fair value adjustment of assets acquired
4880293882.181292552086.647755954464.861762190010.27
from business combination
Depreciation of fixed assets 975166842.96 272103476.86 1119997714.31 280579814.18
Changes in fair value of other non-current
408104042.7699604068.18330012225.7682503056.44
financial assets
Changes in fair value of investments in
134179164.2433544791.03130791178.2832697794.57
other equity instruments
Valuation of held-for-trading financial
2161643.84540410.96--
assets and liabilities
Others 1045132765.59 118992583.19 1169095183.52 126676026.52
Total 50321724587.78 5032004104.44 49156941304.88 5168501205.11
(3) Deferred tax assets or liabilities that are presented at the net amount after offsetting
Balance of deferred
Offset amount of Balance of deferred Offset amount of
tax assets or
deferred tax assets tax assets or deferred tax assets
liabilities after
Item and liabilities at the liabilities after and liabilities at the
offsetting at the end
end of the current offsetting at the end end of the prior
of the prior year
year of the current year year (Restated)
(Restated)
Deferred tax assets -372366000.07 415063477.03 -313481369.78 434498820.95
Deferred tax liabilities -372366000.07 4659638104.37 -313481369.78 4855019835.33
- 105 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Deferred income tax - continued
(4) Deductible temporary differences and deductible losses for which deferred tax assets are
not recognized
Item 31/12/2023 31/12/2022
Deductible temporary differences 966126806.19 930204772.41
Deductible losses 2334799700.50 2112659943.00
Total 3300926506.69 3042864715.41
The Group recognizes deferred income tax assets to the extent of future taxable income that is likely
to be obtained to offset the deductible temporary differences and deductible losses. For the excess
of deductible temporary differences and deductible losses over future taxable income no deferred
tax assets are recognized.
(5) Deductible losses for which deferred tax assets are not recognized will be expired in the
following years:
Year 31/12/2023 31/12/2022
2023-515101493.80
2024483200212.68488358232.03
2025375189307.19375208491.05
2026110765532.94112756494.15
2027612819518.30600178442.73
2028752825129.39-
Deductible losses due after 2029 - 21056789.24
Total 2334799700.50 2112659943.00
23. Other non-current assets
Item 31/12/2023 31/12/2022
Advances for the channel project (Note) 1013508448.79 989752762.75
Prepayments for fixed assets 144896516.09 117094834.14
Prepayments for terminal franchise 29807737.16 27493116.21
Others 5943287.58 52448665.69
total 1194155989.62 1186789378.79
Note: This represents that the Company's subsidiary Zhanjiang Port upon its reorganization into
a joint stock company in 2007 signed the Channel Arrangement Agreement with State-
owned Assets Supervision and Administration Commission of Zhanjiang ("Zhanjiang
SASAC") and China Merchants International Terminal (Zhanjiang) Co. Ltd. According to
the agreement the channel belongs to Zhanjiang SASAC therefore the Group presented
the advances of channel project that should be repaid by Zhanjiang SASAC as other non-
current assets.- 106 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
24. Short-term borrowings
(1) Classification of short-term borrowings
Item 31/12/2023 31/12/2022
Credit borrowings 15593937427.86 7149322782.85
Guaranteed borrowings (Note 1) 110096708.33 -
Mortgage borrowings (Note 2) 10011152.78 15015583.33
Total 15714045288.97 7164338366.18
Note 1: The borrowings are guaranteed by Guangdong Zhanjiang Port Logistics Co. Ltd. ("Zhanjiang
Port Logistics") a subsidiary of the Company.Note 2: It represents the short-term borrowings obtained by Zhoushan RoRo a subsidiary of the
Company with the land use rights and buildings on the land held by it as the collateral.
(2) As at 31 December 2023 the Group has no short-term borrowings that are overdue.
25. Notes payable
Category 31/12/2023 31/12/2022
Bank acceptance 64280925.21 -
Commercial acceptance 9180240.61 -
Total 73461165.82 -
26. Accounts payable
Item 31/12/2023 31/12/2022
Service fee 246400717.07 299350272.24
Material purchase fee 117170447.10 132460163.17
Construction fee 100672753.10 110687325.42
Equipment payments 52762565.74 87445302.02
Rental fee 13591518.23 8304019.32
Others 161167136.01 172902315.49
Total 691765137.25 811149397.66
(1) Aging of accounts payable
31/12/202331/12/2022
Aging Proportion Proportion
Amount Amount
(%)(%)
Within 1 year 617528837.76 89.27 710976970.28 87.65
1-2 years 26506267.62 3.83 47038049.65 5.80
2-3 years 30254034.46 4.37 26667189.69 3.29
More than 3 years 17475997.41 2.53 26467188.04 3.26
Total 691765137.25 100.00 811149397.66 100.00
- 107 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
26. Accounts payable - continued
(2) Significant accounts payable aged more than 1 year
Reason for outstanding or
Name of entity 31/12/2023 Aging
not being carried forward
To be paid upon
Quanzhou Antong Logistics Co. Ltd. 16948161.45 2-3 years
confirmation by both parties.
27. Receipts in advance
Item 31/12/2023 31/12/2022
Rental fee received in advance 8993727.31 6205443.31
Management fee received in advance 2659217.99 -
Others 5734592.06 3681088.28
Total 17387537.36 9886531.59
(1) Aging of receipts in advance
31/12/202331/12/2022
Aging Proportion Proportion
Amount Amount
(%)(%)
Within 1 year 17387537.36 100.00 9884079.59 99.98
1-2 years - - - -
2-3 years - - - -
More than 3 years - - 2452.00 0.02
Total 17387537.36 100.00 9886531.59 100.00
(2) As at 31 December 2023 the Group has no significant receipts in advance aged more than
one year.
(3) As at 31 December 2023 the Group has no receipts in advance with significant changes in
carrying amount.
28 Contract liabilities
(1) Details of contract liabilities
Item 31/12/2023 31/12/2022
Port charges received in advance 84869413.45 55045635.27
Service fee received in advance 26198333.07 59729035.75
Warehousing fee received in advance 3204091.87 3048588.90
Others 27808262.61 24076291.11
Total 142080101.00 141899551.03
(2) There are no significant changes in carrying amount of contract liabilities during the year.
- 108 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28 Contract liabilities - continued
(3) As at 31 December 2023 the Group has no significant contract liabilities aged more than
one year.
(4) Qualitative analysis of contract liabilities
Contract liabilities mainly represent the amount received by the Group for the port services provided
to customers. The payment is collected according to the time agreed in the contract. The Group
recognizes contract revenue based on the progress of the contract. The contract liabilities will be
recognized as revenue after the Group fulfils its performance obligations.
(5) Revenue recognized in the year and included in the carrying amount of contract liabilities
at the beginning of the year
An amount of RMB 91180530.23 included in the carrying amount of contract liabilities at the
beginning of 2023 has been recognized as revenue in the current year including contract liabilities
arising from settled but unfinished construction resulting from the contract of service fees received
in advance amounting to RMB 24937772.66 contract liabilities arising from settled but unfinished
construction resulting from the contract of port charges received in advance amounting to RMB
50149195.64 contract liabilities arising from settled but unfinished construction resulting from
contract of warehousing fee received in advance amounting to RMB 3048588.90 and contract
liabilities arising from settled but unfinished construction resulting from other contracts amounting
to RMB 13044973.03.
29. Employee benefits payable
(1) Presentation of employee benefits payable
Effect of
changes in the Increase for the Decrease for the
Item 31/12/2022 31/12/2023
scope of year year
consolidation
1. Short-term benefits 921533425.99 -35636773.69 3243766906.07 3219390381.18 910273177.19
2. Post-employment benefits
13383514.93-4201592.85351623760.71352451682.768354000.03
- defined contribution plan
3. Termination benefits 2423282.78 - 5158916.08 7582198.86 -
4. Other benefits due within 1 year - - 4053449.56 4053449.56 -
5. Others -505505.57 -631121.04 5145597.17 4671541.13 -662570.57
Total 936834718.13 -40469487.58 3609748629.59 3588149253.49 917964606.65
- 109 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
29. Employee benefits payable - continued
(2) Presentation of short-term benefits
Effect of
changes in the Increase for the Decrease for the
Item 31/12/2022 31/12/2023
scope of year year
consolidation
1. Wages and salaries bonuses
897442262.83-33339184.532606547914.192586737715.36883913277.13
allowances and subsidies
2. Staff welfare - - 169221198.72 169221198.72 -
3. Social insurance contributions 10545539.44 -891098.34 204136593.97 199978211.04 13812824.03
Including: Medical insurance 8631543.96 -836747.58 173636271.40 170223587.11 11207480.67
Work injury insurance 53916.77 -54350.76 17211021.96 17210587.97 -
Others 1860078.71 - 13289300.61 12544035.96 2605343.36
4. Housing funds -95060.47 274.00 198040769.72 198042657.10 -96673.85
5. Labour union and employee
13642129.96-1406764.8250814109.8750314255.4012735219.61
education funds
6. Other short-term benefits -1445.77 - 15006319.60 15096343.56 -91469.73
Total 921533425.99 -35636773.69 3243766906.07 3219390381.18 910273177.19
(3) Presentation of defined benefit plans
Effect of
changes in the Increase for the Decrease for the
Item 31/12/2022 31/12/2023
scope of year year
consolidation
I. Basic pension 9761086.14 -1383333.72 258989715.66 259128522.95 8238945.13
II. Unemployment insurance 49026.91 -49434.91 6077524.71 6077116.71 -
III. Enterprise annuity 3573401.88 -2768824.22 86556520.34 87246043.10 115054.90
Total 13383514.93 -4201592.85 351623760.71 352451682.76 8354000.03
The Company and its domestic subsidiaries participate in the pension insurance and unemployment
insurance plan established by government institutions as required. According to such plans the
Group contributes in proportion to the local government. The Group has established an enterprise
annuity system and accrues and pays the enterprise annuity according to the enterprise annuity
system of the Company and its domestic subsidiaries. In addition to above contributions the Group
has no further payment obligations. The corresponding expenses are included in profit or loss for
the period or the cost of related assets when incurred.
30. Taxes payable
Effect of Effect of translation of
changes in the Provision for Payment for the financial statements
Item 31/12/2022 31/12/2023
scope of the year year denominated in foreign
consolidation currencies
Enterprise
804846345.79-3002884.361123434326.281108672570.983089589.10819694805.83
income tax
VAT 30032002.80 -613554.49 205611948.35 215161352.07 352761.87 20221806.46
Other taxes 83054820.50 -4006342.06 522874894.04 522097230.12 3310817.85 83136960.21
Total 917933169.09 -7622780.91 1851921168.67 1845931153.17 6753168.82 923053572.50
- 110 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Other payables
(1) Presentation of other payables
Item 31/12/2023 31/12/2022
Dividends payable 111897214.27 92374921.29
Other payables 1542724955.75 1663510336.97
Total 1654622170.02 1755885258.26
(2) Dividends payable
Item 31/12/2023 31/12/2022
Ordinary share dividends 111897214.27 92374921.29
Including: China Merchants Zhangzhou Development Zone
77734806.4620000000.00
Co. Ltd. (Note)
Dalian Port Container Development Co. Ltd.
16160696.6114000000.00
("Dalian Port Container")
Dalian Port Jifa Logistics Co. Ltd. 9575104.42 3000000.00
Yingkou Port Group Co. Ltd. ("Yingkou Port -
5372456.78
Group")
Yiu Lian Dockyards Limited 2334150.00 -
Qingdao Port (Group) Co. Ltd. 720000.00 -
Zhanjiang Infrastructure Construction Investment
-41400234.06
Group Co. Ltd.Sri Lanka Ports Authority - 10446900.00
Dalian City Construction Investment Group Co. Ltd
(formerly known as Dalian City Investment Holding - 3527787.23
Group Co. Ltd. )
Note: As at 31 December 2023 the Group has no significant dividends payable aged more than
one year.
(3) Other payables
(a) Disclosure of other payables by nature
Item 31/12/2023 31/12/2022
Amount payable for construction and quality warranty 575941472.21 643816817.51
Guarantees and deposits 246316308.32 221628920.81
Accrued expenses 139920340.25 190048988.98
Customer discount 129780042.30 164622341.62
Port construction and security fee 27939655.23 36697168.04
Balance of payment for transfer of land use rights - 11295700.00
Others 422827137.44 395400400.01
Total 1542724955.75 1663510336.97
- 111 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
31. Other payables - continued
(3) Other payables - continued
(b) Significant other payables aged more than one year or past due
Company name Amount payable Aging Reason for being outstanding
Transport Bureau of Shenzhen Municipality 1-2 years and more than 3
79679948.23 To be paid upon confirmation by both parties
(Ports Administration of Shenzhen Municipality) years
CCCC Water Transport Planning and Design Institute 1-2 years 2-3 years and
58666012.94 To be paid upon confirmation by both parties
Co. Ltd. more than 3 years
Lac Assal Investment Holding Company Limited 48162348.73 1-2 years To be paid upon confirmation by both parties
1-2 years and more than 3 The contracted settlement condition has not
Shanghai Zhenhua Heavy Industries Co. Ltd. 37248716.35
years been reached
Shantou Transportation Bureau 31358355.47 More than 3 years To be paid upon confirmation by both parties
Wuxi Huadong Heavy Machinery Co. Ltd. 10090410.68 2-3 years To be paid upon confirmation by both parties
China Merchants Real Estate (Shenzhen) Co. Ltd. 10079369.00 More than 3 years To be paid upon confirmation by both parties
Guangdong Groton Group Co. Ltd. (formerly known as The contracted settlement condition has not
10000000.00 More than 3 years
Guangdong Hengtai Guotong Industrial Co. Ltd.) been reached
Shantou Finance Bureau 10000000.00 More than 3 years To be paid upon confirmation by both parties
Total 295285161.40 —— ——
32. Non-current liabilities due within one year
Item 31/12/2023 31/12/2022
Long-term borrowings due within one year (Note VIII 34) 1033008184.01 2313191859.96
Including: Credit borrowings 532282391.00 1368934869.99
Guaranteed borrowings 410725775.58 219564028.82
Mortgage and pledged borrowings 30352589.61 715461578.62
Guaranteed and mortgage borrowings 59647427.82 9231382.53
Bonds payable due within one year (Note VIII 35) 5267490749.32 8668651537.27
Lease liabilities due within one year (Note VIII 36) 248634286.86 306942164.80
Long-term payables due within one year (Note VIII 37) 184534373.50 155665725.85
Long-term employee benefits payable due within one year
49730825.2154414877.57
(Note VIII 38)
Other non-current liabilities due within one year (Note VIII 41) 34005870.35 142357523.50
Total 6817404289.25 11641223688.95
33. Other current liabilities
(1) Details of other current liabilities
Item 31/12/2023 31/12/2022
Short-term bonds payable 2007190136.98 3017713424.64
Accrued professional agency fee 114638017.33 124799040.22
Others 22014380.22 18635061.10
Total 2143842534.53 3161147525.96
- 112 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
33. Other current liabilities - continued
(2) Changes in short-term bonds payable
Interest
Amortization of Is it in
Coupon Term of Amount issued in accrued Repayment in
Name of bond Face value Date of issue Amount of issue 31/12/2022 premiums or 31/12/2023 breach of
rate the bond the current year based on par the current year
discounts contract
value
2.43% RMB 2 billion Super &
2000000000.00 2.43% 2023-11-7 90 days 2000000000.00 - 2000000000.00 7190136.98 - - 2007190136.98 No
Short-term Commercial Paper
2.35% RMB 2 billion Super &
2000000000.00 2.35% 2023-3-1 180 days 2000000000.00 - 2000000000.00 23114754.10 - 2023114754.10 - No
Short-term Commercial Paper
2.05% RMB 2 billion Super &
2000000000.00 2.05% 2023-6-14 180 days 2000000000.00 - 2000000000.00 20163934.43 - 2020163934.43 - No
Short-term Commercial Paper
1.75% RMB 1 billion Super &
1000000000.00 1.75% 2022-9-1 270 days 1000000000.00 1005657534.24 - 7287671.24 - 1012945205.48 - No
Short-term Commercial Paper
1.93% RMB 2 billion Super &
2000000000.00 1.93% 2022-9-8 180 days 2000000000.00 2012055890.40 - 6979725.60 - 2019035616.00 - No
Short-term Commercial Paper
Total 9000000000.00 — — — — — — 9000000000.00 3017713424.64 6000000000.00 64736222.35 - 7075259510.01 2007190136.98
- 113 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Long-term borrowings
Range of year-end
Category 31/12/2023 31/12/2022
interest rate
Credit borrowings 16857281855.60 12319883867.05 1.20%-3.80%
Guaranteed borrowings (Note 1) 845725775.58 1020670858.02 2.95%-12.90%
Mortgage and pledged borrowings (Note 2) 314794387.22 1082723114.44 3.40%-3.96%
Guaranteed and mortgage borrowings (Note 3) 1242750120.32 280013198.30 2.95%
Total 19260552138.72 14703291037.81 — —
Less: Long-term borrowings due within one year 1033008184.01 2313191859.96 — —
Including: Credit borrowings 532282391.00 1368934869.99 — —
Guaranteed borrowings 410725775.58 219564028.82 — —
Mortgage and pledged borrowings 30352589.61 715461578.62 — —
Guaranteed and mortgage borrowings 59647427.82 9231382.53
Long-term borrowings due after one year 18227543954.71 12390099177.85 — —
Note 1: The borrowings are guaranteed by Shenzhen Magang Godown & Wharf Co. Ltd. China
Merchants Port (Shenzhen) Co. Ltd. and CM Port.Note 2: On 31 December 2023 the Group obtained the long-term borrowings of RMB
314794387.22(31 December 2022: RMB 1082723114.44) with the land with property
right fixed assets and construction in progress of Yide Port Co. Ltd. ("Yide Port") as
well as the land with property right of Guangdong Shunkong Port Development and
Construction Co. Ltd. ("Shunkong Port") as collaterals.Note 3: On 31 December 2023 Shenzhen Haixing Harbor Development Co. Ltd. ("Shenzhen
Haixing") obtained the long-term borrowings of RMB 1242750120.32 (31 December
2022: RMB 280013198.30) with the land with property right as collaterals and the
borrowings are guaranteed by CM Port and Sinotrans South China Co. Ltd.Details of mortgage and pledged borrowings are as follows:
Company name 31/12/2023 31/12/2022 Collateral and pledge
Bank of China Qianhai Shekou Branch 1242750120.32 280013198.30 Land use rights of Shenzhen Haixing
Land use rights and fixed assets of
China Construction Bank Shunde Branch 206239867.27 236479995.32
Yide Port
Bank of Communications Co. Ltd. Guangdong Branch 108554519.95 - Land use rights (Phase II) of Shunde
China Development Bank Corporation - 494997308.55 The Group's entire equity in CICT
International Finance Corporation - 123849460.76
African Development Bank - 56864864.36
Nederlandse Financierings-Maatschappij voor
-46859749.65
Ontwikkelingslanden N.V.The OpecFund For International Development - 40139904.25 The Group's entire equity in TML
Societe de Promotion et de Participation pour
-40170265.09
la Cooperation Economique S.A.Deutsche Investitions-und
-33449920.21
Entwicklungsgesellschaft MBH
Land use rights and fixed assets of
China Minsheng Bank Co. Ltd. Zhoushan Branch - 9911646.25
Zhoushan RoRo
Total 1557544507.54 1362736312.74
Note: See Note (VIII) 64 for the above mortgages and pledges.- 114 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Bonds payable
(1) Bonds payable
Item 31/12/2023 31/12/2022
5.000% USD 600 million corporate bond 4304565371.23 4227154465.35
4.750% USD 500 million corporate bond 3605285143.36 3542544662.47
4.000% USD 500 million corporate bond 3544024689.32 3482186896.02
2.690% RMB 3 billion corporate bond 3027415890.40 3027415890.40
2.450% RMB 3 billion corporate bond 3023560273.97 3023560273.97
3.520% RMB 2 billion corporate bond 2050147945.19 2050147945.19
4.375% USD 900 million corporate bond - 6371347105.64
3.360% RMB 2 billion corporate bond - 2032587397.25
Total 19554999313.47 27756944636.29
Less: Bonds payable due within one year 5267490749.32 8668651537.27
Bonds payable due after one year 14287508564.15 19088293099.02
- 115 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Bonds payable - continued
(2) Details of bonds payable
Effect of
Amount translation of
Interest accrued Amortization Is it in
Coupon Term of issued in Repayment in financial
Name of bonds Face value Date of issue Amount of issue 31/12/2022 based on par of premiums 31/12/2023 breach of
rate the bond the current current year statements
value or discounts contract
year denominated in
foreign currencies
4.375% USD 900 million corporate
USD 900000000.00 4.3750% 2018-8-6 5 years USD 900000000.00 6371347105.64 - 165969062.10 7181597.31 6594432388.71 49934623.66 - No
bond
5.000% USD 600 million corporate
USD 600000000.00 5.0000% 2018-8-6 10 years USD 600000000.00 4227154465.35 - 211325733.29 5708335.36 211183578.27 71560415.50 4304565371.23 No
bond
4.750% USD 500 million corporate
USD 500000000.00 4.7500% 2015-8-3 10 years USD 500000000.00 3542544662.47 - 167360385.31 2662117.20 167360385.38 60078363.76 3605285143.36 No
bond
3.360% RMB 2 billion corporate
2000000000.00 3.3600% 2020-7-7 3 years 2000000000.00 2032587397.25 - 34612602.75 - 2067200000.00 - - No
bond
3.520% RMB 2 billion corporate
2000000000.00 3.5200% 2021-4-14 3 years 2000000000.00 2050147945.19 - 70400000.00 - 70400000.00 - 2050147945.19 No
bond
4.000% USD 500 million corporate
USD 500000000.00 4.0000% 2022-6-1 5 years USD 500000000.00 3482186896.02 - 140882105.54 2781931.67 140841532.67 59015288.76 3544024689.32 No
bond
2.690% RMB 3 billion corporate
3000000000.00 2.6900% 2022-8-29 3 years 3000000000.00 3027415890.40 - 80700000.00 - 80700000.00 - 3027415890.40 No
bond
2.450% RMB 3 billion corporate
3000000000.00 2.4500% 2022-9-5 2 years 3000000000.00 3023560273.97 - 73500000.00 - 73500000.00 - 3023560273.97 No
bond
Total — — — — — — — — — — 27756944636.29 - 944749888.99 18333981.54 9405617885.03 240588691.68 19554999313.47 No
Less: Bonds payable due within
——————————8668651537.27————————5267490749.32——
one year
Bonds payable due after one year — — — — — — — — — — 19088293099.02 — — — — — — — — 14287508564.15 — —
- 116 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
36. Lease liabilities
(1) Lease liabilities
Category 31/12/2023 31/12/2022
Lease payment 2782133802.80 1963098776.36
Unrecognized financing cost -1532327309.02 -707805697.52
Total 1249806493.78 1255293078.84
Less: Lease liabilities due within one year 248634286.86 306942164.80
Lease liabilities due after one year 1001172206.92 948350914.04
(2) Maturity of lease liabilities
Item 31/12/2023
Minimum lease payments under non-cancellable leases:
1st year subsequent to the balance sheet date 298065006.16
2nd year subsequent to the balance sheet date 91365497.12
3rd year subsequent to the balance sheet date 86669003.03
Subsequent years 2306034296.49
Total 2782133802.80
The Group is not exposed to any significant liquidity risk associated with lease liabilities.
37. Long-term payables
(1) Presentation of long-term payables
Item 31/12/2023 31/12/2022
Long-term payables 4001789922.65 3698632219.45
Special payables 5606653.02 8349096.71
Total 4007396575.67 3706981316.16
Less: Long-term payables due within one year 184534373.50 155665725.85
Long-term payables due after one year 3822862202.17 3551315590.31
(2) Long-term payables
Item 31/12/2023 31/12/2022
Terminal management rights (Note) 3958393516.47 3657579951.15
Others 43396406.18 41052268.30
Total 4001789922.65 3698632219.45
Less: Long-term payables due within one year 184534373.50 155665725.85
Long-term payables due after one year 3817255549.15 3542966493.60
- 117 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
37. Long-term payables - continued
(2) Long-term payables - continued
Note: Mainly from CICT and TCP terminal management rights purchased. On 12 August 2011 the
Group reached a 35-year building operation and transfer agreement through the subsidiary CICT
and Sri Lanka Port Authority on the building operation management and development of
Colombo Port South Container Terminal (hereinafter referred to as "BOT"). The above-
mentioned amount payable for the acquisition of terminal management rights is determined by
discounting the amount to be paid in the future using the prevailing market interest rate according
to the BOT agreement. As at 31 December 2023 the amount payable for the acquisition of
terminal management rights is RMB 876500567.56.TCP a subsidiary of the Company entered into a franchise agreement on the Port of
Paranaguá with the Administration of the Ports of Paranaguá and Antonina- APPA
(hereinafter referred to as "APPA"). The agreement provides for an initial term of 25 years
for the franchising rights. In April 2016 TCP and APPA entered into the Supplemental
Agreement which extends the term to 50 years and will be expired in October 2048.On 9 September 2021 TCP a subsidiary of the Company entered into a supplemental
agreement to the Lease Agreement with APPA for the franchising rights of the Ports of
Paranaguá and Antonina pursuant to which the base figure for the calculation of franchising
rights for the Ports of Paranaguá and Antonina was adjusted from Brazil IGP-M Inflation
Index ("IGP-M index") to the Extended National Consumer Price Index ("IPCA index") of
Brazilian Institute of Geography and Statistics("IBGE"). In November 2021 TCP
readjusted the franchising rights using the IPCA index. As at 31 December 2023 the amount
of franchising rights payable was RMB 3081892948.91.
(3) Special payables
Effect of
Increase for Decrease for changes in the
Item 31/12/2022 31/12/2023 Reason
the year the year scope of
consolidation
Employee housing fund 5126641.68 480061.34 50.00 - 5606653.02 Note
Innovation workshop
3222455.03---3222455.03-
for model workers
Total 8349096.71 480061.34 50.00 -3222455.03 5606653.02
Note: This represents the repairing fund for public areas and public facilities and equipment
established after the Group sells the public-owned house on the collectively allocated land
to employees. The fund is contributed by all the employees having ownership of the house
according to the rules and is specially managed and used for specific purpose.- 118 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Long-term employee benefits payable
(1) Long-term employee benefits payable
Item 31/12/2023 31/12/2022
Post-employment benefits - net liabilities of defined benefit plans 509605071.25 516950669.03
Termination benefits 58098932.22 64274552.96
Others (Note) 85036743.65 112285587.01
Total 652740747.12 693510809.00
Less: Long-term employee benefits payable due within one year 49730825.21 54414877.57
Long-term employee benefits payable due after one year 603009921.91 639095931.43
Note: This represents the employee relocation costs of the Company's subsidiary Shantou Port in
connection with land acquisition and reservation.
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Item 2023 2022
I. Opening balance 516950669.03 463858274.44
II. Defined benefit cost included in profit or loss for the period 31630084.71 24392165.72
1. Current service cost 14097094.50 11191538.44
2. Past service cost 2420000.00 -
3. Interest adjustment 15112990.21 13200627.28
III. Defined benefit cost included in other comprehensive income -22975434.75 50820198.04
1. Actuarial gains -23856287.15 49959657.35
2. Effect of exchange rate changes 880852.40 860540.69
IV. Other changes -16000247.74 -22119969.17
1. Benefits paid -16000247.74 -22119969.17
2. Changes in the scope of consolidation - -
V. Closing balance 509605071.25 516950669.03
The Company's subsidiaries provide the registered retirees and in-service staff with supplementary
post-employment benefit plans.The Group hired a third-party actuary to estimate the present value of the above-mentioned
retirement benefit plan obligations in an actuarial manner based on the expected cumulative welfare
unit method. The Group recognizes the liabilities based on the actuarial results. The relevant
actuarial gains or losses are included in other comprehensive income and cannot be reclassified into
profit or loss in the future. Past service costs are recognized in profit or loss for the period in which
the plan is revised. The net interest is determined by multiplying the defined benefit plan net debt
or net assets by the appropriate discount rate.- 119 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Provisions
Effect of
translation of
Increase for Decrease for financial
Item 31/12/2022 31/12/2023 Reason
the year the year statements
denominated in
foreign currencies
Pending litigation 35365156.43 52650477.00 7489688.34 5064114.32 85590059.41 Note
Sales discount - 179125657.39 179125657.39 - -
Total 35365156.43 231776134.39 186615345.73 5064114.32 85590059.41
Note: This represents the estimated compensation amount that the Company's subsidiary TCP may
need to pay due to the pending litigation.
40. Deferred income
Decrease for the
Item 31/12/2022 Increase for the year 31/12/2023
year
Government grants 1031273189.74 41207834.25 47704466.26 1024776557.73
Total 1031273189.74 41207834.25 47704466.26 1024776557.73
41. Other non-current liabilities
Item 31/12/2023 31/12/2022
Actuarial cost for the calculation of pension benefit difference
198642177.67175742813.67
for the public security bureau staff (Note 1)
Related party borrowings (Note 2) 11945870.35 3162000.00
Third party borrowings (Note 2) - 143755523.50
Berth priority call right (Note 3) 439990.79 4480217.05
Others 2612095.27 1600086.28
Total 213640134.08 328740640.50
Less: Other non-current liabilities due within one year 34005870.35 142357523.50
Including: Actuarial cost for the calculation of pension benefits
22060000.0015440000.00
difference for the public security bureau staff
Related party borrowings 11945870.35 3162000.00
Third party borrowings - 123755523.50
Other non-current liabilities due after one year 179634263.73 186383117.00
- 120 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
41. Other non-current liabilities - continued
Note 1: It represents the transfer of Zhanjiang Port Public Security Bureau to the People's
Government of Zhanjiang Municipality by Zhanjiang Port a subsidiary of the Company
in 2020 in accordance with the Notice on the Issuance of the Program on Deepening the
Management System Reform of Ganghang Public Security Organs (Zhong Yang Bian Ban
Fa No. 327 (2017)) and the Notice on the Issuance of the Implementation Plan for
Deepening the Management System Reform of Ganghang Public Security Organs in
Guangdong Province (Yue Ji Bian Ban Fa No. 221 (2018)). The former in-service police
officers of Zhanjiang Port Public Security Bureau were transferred as civil servants in
accordance with state regulations the retired police officers were included in the scope of
pension insurance of the government departments and public institutions in Zhanjiang
and the difference between the pension benefits under the original standard and the
retirement benefits of Zhanjiang municipal police officers (the "pension benefit
difference") was borne by Zhanjiang Port.Shantou Port a subsidiary of the Company transferred Shantou Municipal Public Security
Bureau Ganghang Branch (formerly the Shantou Port Public Security Bureau) to Shantou
Municipal Government and Shantou Municipal Public Security Bureau Ganghang Branch
was fully taken over by Shantou Municipal Public Security Bureau. The in-service police
officers were transferred as civil servants in accordance with state regulations the retired
police officers were included in the scope of pension insurance of the government
departments and public institutions in Shantou and the pension benefit difference was
borne by Shantou Port.Note 2: It represents the principal and interest on borrowings of the subsidiary of the Company
Shunkong Port from its minority shareholder Guangdong Shunkong City Investment Real
Estate Co. Ltd. and its related party Guangdong Shunkong Transportation Investment Co.Ltd.Note 3: It represents the berth priority call right as agreed in the contract entered into with the
customers in 2003 with total amount of USD14 million. The Group must give priority to
the berthing requirements of the contracted customers during the contract period. Chiwan
Container Terminal amortized the berth priority call right over 20 years using straight-line
method.- 121 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
42. Share capital
Changes for the year
Capitalization
Item 31/12/2022 New issue 31/12/2023
Bonus issue of surplus Others Sub-total
of share
reserve
2023
I. Restricted tradable shares — — — — — — — — — — — — — —
1. State-owned shares - - - - - - -
2. State-owned corporate shares 576709537.00 - - - - - 576709537.00
3. Other domestic shares 7366.00 - - - -7366.00 -7366.00 -
4. Foreign shares - - - - - - -
Total restricted tradable shares 576716903.00 - - - -7366.00 -7366.00 576709537.00
II. Non-restricted tradable shares — — — — — — — — — — — — — —
1. Ordinary shares denominated in RMB 1742468718.00 - - - 976.00 976.00 1742469694.00
2. Foreign capital shares listed domestically 179889040.00 - - - 6390.00 6390.00 179895430.00
3. Foreign capital shares listed overseas - - - - - - -
4. Others - - - - - - -
Total non-restricted tradable shares 1922357758.00 - - - 7366.00 7366.00 1922365124.00
III. Total shares 2499074661.00 - - - - - 2499074661.00
- 122 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
42. Share capital - continued
Changes for the year
Capitalization
Item 31/12/2021 New issue 31/12/2022
Bonus issue of surplus Others Sub-total
of share
reserve
2022
I. Restricted tradable shares — — — — — — — — — — — — — —
1. State-owned shares - - - - - - -
2. State-owned corporate shares - 576709537.00 - - - 576709537.00 576709537.00
3. Other domestic shares 9821.00 - - - -2455.00 -2455.00 7366.00
4. Foreign shares 1148648648.00 - - - -1148648648.00 -1148648648.00 -
Total restricted tradable shares 1148658469.00 576709537.00 - - -1148651103.00 -571941566.00 576716903.00
II. Non-restricted tradable shares — — — — — — — — — — — — — —
1. Ordinary shares denominated in RMB 593819745.00 - - - 1148648973.00 1148648973.00 1742468718.00
2. Foreign capital shares listed domestically 179886910.00 - - - 2130.00 2130.00 179889040.00
3. Foreign capital shares listed overseas - - - - - - -
4. Others - - - - - - -
Total non-restricted tradable shares 773706655.00 - - - 1148651103.00 1148651103.00 1922357758.00
III. Total shares 1922365124.00 576709537.00 - - - 576709537.00 2499074661.00
- 123 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
43. Capital Reserve
Item 31/12/2022 Increase Decrease 31/12/2023
2023
I. Capital premium 34208812963.50 2244317625.22 - 36453130588.72
Including: Capital contributed by investors 17068816277.34 - - 17068816277.34
Differences arising from business combination
13302937205.73--13302937205.73
involving enterprises under common control
Differences arising from acquisition of minority
2165423814.022242433715.25-4407857529.27
interests (Note 1)
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 system
Unexercised share-based payment (Note 2) 5591402.00 1528712.73 475524.37 6644590.36
Other changes in owners' equity of the investee
under equity method other than changes in net
540017602.75103100021.0423264866.81619852756.98
profit or loss profit distribution and other
comprehensive income
Total 34751640835.25 2348946358.99 23740391.18 37076846803.06
2022
I. Capital premium 23189922809.62 11018890153.88 - 34208812963.50
Including: Capital contributed by investors 7012992483.94 10055823793.40 - 17068816277.34
Differences arising from business combination
13302937205.73--13302937205.73
involving enterprises under common control
Differences arising from acquisition of minority
1215209939.74950213874.28-2165423814.02
interests
Others 1658783180.21 12852486.20 - 1671635666.41
II. Other capital reserve 402779949.08 151303029.21 11255106.54 542827871.75
Including: Transfer from capital reserve under the previous
-2781133.00---2781133.00
accounting system
Unexercised share-based payment 9956938.60 5617671.30 9983207.90 5591402.00
Other changes in owners' equity of the investee
under equity method other than changes in net
395604143.48145685357.911271898.64540017602.75
profit or loss profit distribution and other
comprehensive income
Total 23592702758.70 11170193183.09 11255106.54 34751640835.25
Note 1: The changes for the year mainly represent the dividends attributable to CM Port that the
Company chose to acquire in the form of share replacement and shareholding increase
which increased the capital reserve by RMB 2269118327.61. Refer to Note (XI) 2 for
details.Note 2: Refer to Note (XVI) 2 for details.- 124 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
44. Other comprehensive income
2023
Less: Amount Less: Amount
included in other included in other
comprehensive comprehensive Attributable to
Item 31/12/2022 Pre-tax amount for the income in the prior income in the prior Less: Income Attributable to the minority Other changes 31/12/2023
year period but period but tax expenses Company net of tax shareholders net of
transferred to profit transferred to tax
or loss in the retained earnings in
current period the current period
2023
I. Other comprehensive income that will not be reclassified
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 that may be
-60762188.43-767504700.07----366028318.84-401476381.23--426790507.27
reclassified to profit or loss under 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
2022 (Restated)
I. Other comprehensive income that will not be reclassified
81233996.26-72230027.20--329334.05-22706023.29-49853337.967513669.9151014303.06
subsequently to profit or loss
Including: Changes arising from remeasurement of defined
2603415.85-49039668.45----12793128.73-36246539.72--10189712.88
benefit plans
Other comprehensive income that can't be
2643088.68-25906733.50----11550762.02-14355971.48--8907673.34
reclassified to profit or loss under equity method
Changes in fair value of other equity instruments 75987491.73 2716374.75 - - 329334.05 1637867.46 749173.24 7513669.91 70111689.28
II. Other comprehensive income that will be reclassified
-971359314.441701191299.27---230791391.521470399907.75--740567922.92
subsequently to profit or loss
Including: Other comprehensive income that may be
49431519.10-246633232.89----110193707.53-136439525.36--60762188.43
reclassified to profit or loss under equity method
Translation differences of financial statements
-1020790833.541947824532.16---340985099.051606839433.11--679805734.49
denominated in foreign currencies
Total other comprehensive income -890125318.18 1628961272.07 - - 329334.05 208085368.23 1420546569.79 7513669.91 -689553619.86
- 125 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
45. Special reserve
Item 31/12/2022 Increase Decrease 31/12/2023
Safety production cost 26358259.97 61589514.21 53943779.77 34003994.41
46. Surplus reserve
Item 31/12/2022 Increase Decrease 31/12/2023
Statutory surplus reserve 1001917449.15 94063114.53 - 1095980563.68
47. Unappropriated profit
Proportion of
Item Amount appropriation or
allocation
2023
Unappropriated profit at the beginning of the year before adjustment 16679688347.09
Add: Adjustment to unappropriated profit at beginning of the year 22299954.05
Including: Changes in accounting policies 22299954.05
Unappropriated profit at the beginning of the year after adjustment 16701988301.14
Add: Net profit of the year attributable to shareholders of the Company 3571800762.16
Unappropriated profit carried forward from other comprehensive income -
Less: Transfer to statutory surplus reserve in the current year 94063114.53
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 1124583597.45 Note 1
Ordinary shares' dividends converted into share capital -
Pension benefit difference 7944921.60 Note 2
Transfer to the National Council for Social Security Fund of the PRC -
Distribution to holders of other equity instruments -
Others 1883909.97
Unappropriated profit at the end of the year 19045313519.75
Proportion of
Item Amount appropriation or
allocation
2022 (Restated)
Unappropriated profit at the beginning of the year before adjustment 14205879106.49
Add: Adjustment to unappropriated profit at beginning of the year 21052360.17
Including: Changes in accounting policies 21052360.17
Unappropriated profit at the beginning of the year after adjustment 14226931466.66
Add: Net profit of the year attributable to shareholders of the Company 3338693816.70
Unappropriated profit carried forward from other comprehensive income 7513669.91
Less: Transfer to statutory surplus reserve in the current year 40734887.15
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 826617003.32
Ordinary shares' dividends converted into share capital -
Pension benefit difference 3798761.66
Distribution to holders of other equity instruments
Others -
Unappropriated profit at the end of the year 16701988301.14
- 126 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
47. Unappropriated profit - continued
Note 1: According to the resolution of shareholders' meeting on 22 May 2023 the Company
distributes cash dividends of RMB 4.50 (inclusive of tax) for every 10 shares totalling
RMB 1124583597.45 on the basis of the total shares of 2499074661 at the end of 2022.Note 2: This represents the difference between the pension benefits under the original standard
and the retirement benefits of Shantou municipal police officers borne by Shantou Port.Shantou Port recognizes the related liabilities based on the actuarial results and
unappropriated profit of RMB 7944921.60 is eliminated based on the proportion of
equity interest in Shantou Port.
48. Operating income and operating costs
(1) Details of operating income and operating costs
20232022
Item
Income Cost Income Cost
Principal operation 15568944030.70 9085897544.06 16072394601.93 9433786605.46
Other operations 181531749.52 232289163.69 158094525.62 216675107.48
Total 15750475780.22 9318186707.75 16230489127.55 9650461712.94
- 127 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Operating income and operating costs - continued
(2) Breakdown information of operating income and operating costs
Ports operation Bonded logistics operation Other operations Total
Category of contracts Operating Operating Operating Operating
Operating costs Operating costs Operating costs Operating costs
income income income income
Mainland China Hong Kong
10284643568.106714915284.62492433288.31254604583.47181531749.52232289163.6910958608605.937201809031.78
and Taiwan area
- Pearl River Delta 6075691801.01 3640281453.34 343594001.79 181329868.92 181531749.52 232289163.69 6600817552.32 4053900485.95
- Yangtze River Delta 557788311.93 361926675.75 - - - - 557788311.93 361926675.75
- Bohai Rim 76760801.96 63825074.56 148839286.52 73274714.55 - - 225600088.48 137099789.11
- Other areas 3574402653.20 2648882080.97 - - - - 3574402653.20 2648882080.97
Other countries 4751630018.56 2081165945.51 40237155.73 35211730.46 - - 4791867174.29 2116377675.97
Total 15036273586.66 8796081230.13 532670444.04 289816313.93 181531749.52 232289163.69 15750475780.22 9318186707.75
- 128 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Operating income and operating costs - continued
(3) Description of performance obligations
The Group provides port service bonded logistics service and other services. These services are
obligations performed over a period of time. For port services as the handling time for containers
and bulk cargos is short the management believes that it is not necessary to recognize revenue
according to the progress towards the completion of contract and it is an appropriate method to
recognize the fulfilment of performance obligation and revenue upon the completion of the service.For bonded logistics service and other services the customers evenly obtain and consume the
economic benefits from the Group's performance of contract meanwhile the charging rules as
agreed in the contract terms usually adopt daily/month/yearly basis. During the process of rendering
services the Group recognizes revenue using straight-line method. At the same time the Group is
primarily responsible for the above services and generally does not have any commitment to the
amount of money expected to be returned to the customer.Part of the Group's handling contracts are established with discount terms i.e. the customers whose
business volume reaches agreed level are granted with preferential charge rate or discount. At the
end of the year as the business volume finally realized within the contract period is uncertain the
contract consideration is subject to variable factors. The management includes this part of discount
in other payables and provisions. At the end of the year the variable considerations arising from
sales discount are set out in Note (VIII) 31 (3) and Note (VIII) 39.
(4) Descriptions on allocation to remaining performance obligations
At the end of the year the amount of revenue corresponding to the performance obligations which
the Group has entered into a contract for but has not fulfilled or completely fulfilled mainly included
the contract liabilities of RMB 142080101.00 of which RMB 97512251.80 is expected to be
recognized as revenue in 2024; and RMB 44567849.20 is expected to be recognized as revenue in
2025 and subsequent years.
49. Taxes and surcharges
Item 2023 2022
Property tax 75912651.85 63233633.53
Land use tax 37809190.33 36260260.97
City construction and maintenance tax 7891945.97 8456389.09
Education surcharges and local education surcharges 5953401.79 6253550.00
Stamp duty 5057465.35 8694943.46
Others (Note) 180373370.90 159350696.41
Total 312998026.19 282249473.46
Note: Others mainly represent the social contribution tax and tax on services borne by TCP a
subsidiary of the Company totalled BRL 120997445.84 (equivalent to RMB
170698356.69) for the year.
- 129 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
50. Administrative expenses
Item 2023 2022
Employee benefits 1297690387.03 1280394043.79
Depreciation expenses 75710865.79 79095275.09
Fees paid to agencies 63693285.42 80164840.55
Amortization of intangible assets 56233463.25 54493578.78
Others 283313153.89 270946998.30
Total 1776641155.38 1765094736.51
51. Research and development expenses
Item 2023 2022
Employee benefits 163593250.77 218783071.72
Direct materials and outsourced R&D 41115107.10 47737604.22
Depreciation and amortization 11500358.17 15813613.68
Others 7530356.03 5371889.08
Total 223739072.07 287706178.70
52. Financial expenses
Item 2023 2022
Interest expenses 2016181859.25 1960177578.36
Less: Interest income 497593921.36 469834098.05
Less: Capitalized interest expenses 45140959.39 30960097.84
Exchange differences 85519920.28 477004284.27
Interest expenses -Terminal management rights (Note) 206277567.64 222326056.63
Interest expenses on lease liabilities 60834329.16 73619268.64
Handling fee 5316520.88 21148526.03
Others 7718011.68 5232154.38
Total 1839113328.14 2258713672.42
Note: Details are set out in Note (VIII) 37.
53. Other income
Classification by nature 2023 2022
Business development subsidy 113983657.91 94355004.33
Transfer from allocation of deferred income (Note VIII 40) 47704466.26 45858732.41
Additional deduction of VAT 25604125.36 45179805.12
Special fund for operation 18439586.22 7385898.57
Steady post subsidies 1682015.15 5771198.38
Others 16975409.87 43097431.61
Total 224389260.77 241648070.42
- 130 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
54. Investment income
(1) Details of investment income:
Item 2023 2022
Income from long-term equity investments under equity method 5979007585.96 7185182148.75
Including: Income from long-term equity investments of
5582402904.906765840426.95
associates under equity method
Income from long-term equity investments of joint ventures
396604681.06419341721.80
under equity method
Investment income from disposal of subsidiaries 216949902.47 -
Income from disposal of long-term equity investments (Losses
77647.56-20508.06
are marked with "-")
Investment income from held-for-trading financial assets 91219728.19 152728622.47
Investment income from other non-current financial assets 41365576.62 39525241.71
Dividend income from investments in other equity instruments 20056500.00 240001.46
Total 6348676940.80 7377655506.33
(2) Details of income from long-term equity investments under equity method
Investee 2023 2022 Reason for changes
SIPG 3700844097.27 4762565562.93 Changes in net profit of investee
Ningbo Zhoushan 1049986813.85 351607511.90 Changes in net profit of investee
Terminal Link SAS 221059137.39 364965366.44 Changes in net profit of investee
Nanshan Group 214805574.66 206680217.04 Changes in net profit of investee
Euro-Asia Oceangate S.àr.l. 186208262.73 140072915.26 Changes in net profit of investee
Liaoning Port 151571456.52 144196061.13 Changes in net profit of investee
Shenzhen China Merchants Qianhai
42538797.17 218696415.40 Changes in net profit of investee
Industrial Development Co. Ltd.Others 411993446.37 996398098.65 Changes in net profit of investee
Total 5979007585.96 7185182148.75
55. Gains (Losses) from changes in fair value
Source resulting in gains from changes in fair values (Losses
20232022
are marked with "-")
Held-for-trading financial assets 49197662.35 34417357.38
Other non-current financial assets 24155138.17 -163451007.49
Including: Financial assets at fair value through profit or loss 24155138.17 -163451007.49
Total 73352800.52 -129033650.11
56. Gains (Losses) from impairment of credit
Item 2023 2022
I. Losses from impairment of credit of accounts receivable -9285389.19 -5939952.37
II. Gains (Losses) from impairment of credit of other receivables
43872200.88-217234842.93
(Losses are marked with "-")
III. Gains (Losses) from impairment of credit of long-term
2697229.49-298781.25
receivables (Losses are marked with "-")
Total 37284041.18 -223473576.55
- 131 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
57. Losses from impairment of assets
Item 2023 2022
Losses from impairment of fixed assets -149923619.44 -6048776.05
Losses from impairment of intangible assets -41473147.97 -15537122.10
Gains (Losses) from decline in value of inventories (Losses are
99456.13-573122.05
marked with "-")
Total -191297311.28 -22159020.20
58. Gains from disposal of assets
Amount included in
non-recurring profit
Item 2023 2022
or loss for the current
year
Gains from disposal of non-current assets 36759532.61 55130095.52 3675932.61
Including: Gains from disposal of intangible
35051791.8057590483.0435051791.80
assets
Gains (Losses) from disposal of
fixed assets (Losses are marked 1713921.04 -1824719.58 173921.04
with "-")
Other losses -6180.23 -635667.94 -6180.23
59. Non-operating income
Amount included in
non-recurring profit
Item 2023 2022
or loss for the
current year
Compensation received for violation of
55396338.322930876.8553968.2
contracts
Management service fee and
11964440.078190857.4019640.7
directors' remuneration
Land rent deduction 7124609.25 6421113.49 7124609.25
Income from relocation compensation 5558730.17 6955000.00 5558730.17
Gains from retirement or damage of
1966904.663138573.241966904.66
non-current assets
Including: Gains from retirement
1765984.403138573.241765984.40
or damage of fixed assets
Exempted current accounts 197118.09 25091421.77 197118.09
Insurance claims 44269.64 341555.58 44269.64
Operation compensation (Note) - 213574591.16 -
Government grants - 1640553.77 -
Others 5049613.92 10989909.51 5049613.92
Total 87302024.12 279274452.77 873024.1
Note: Refer to Note (VIII) 7.3 (2) for details.- 132 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
60. Non-operating expenses
Amount included in
non-recurring profit
Item 2023 2022
or loss for the
current year
Litigation loss 42689603.93 20603558.61 4268903.Losses on retirement of non-current
24548001.45162620964.79245801.45
assets
Including: Losses on retirement
22356701.0434444521.732356701.4
or damage of fixed assets
Expenditure on public welfare
11153329.5121352071.5315329.1
donations
Compensation and liquidated damages 1195947.89 11552735.44 19547.8
Administrative fines and late fees 624038.01 - 624038.01
Others 16861919.93 4312924.31 16891.3
Total 97072840.72 220442254.68 970284.7
61. Borrowing costs
Item Capitalization rate Amount capitalized
Construction in progress — — — —
Phase I project for the stuffing and destuffing service area of
3.50%10355373.62
Baoman Port Area Zhanjiang Port
Phase II project for the operation area terminal at Liaogeshan Port
4.19%10134790.48
Area Foshan Port
Installation project of bucket-wheel stacker reclaimer
3.50%837359.25
Zhanjiang Port
Phase I expansion project for the container terminal at Baoman
3.30%57750.00
Port Area Zhanjiang Port
Other non-current assets — — — —
Advances for channels 3.50% 23755686.04
Sub-total — — 45140959.39
Interest expenses included in profit or loss for the period
(Excludes interest expense on terminal operating rights and lease — — 1971040899.86liabilities）
Total — — 2016181859.25
62. Translation of foreign currencies
Item 2023
Exchange differences included in profit or loss for the period 85519920.28
Total 85519920.28
63. Income tax expenses
Item 2023 2022
Current income tax expenses 1129424872.77 871429455.95
Deferred income tax expenses 174154980.16 241530220.80
Total 1303579852.93 1112959676.75
- 133 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
63. Income tax expenses - continued
Reconciliation of income tax expenses to the accounting profit is as follows:
Item 2023
Total profit 8799191938.69
Income tax expenses calculated at 25% 2199797984.67
Effect of non-deductible costs expenses and losses 272242876.02
Accrued income tax 384531164.82
Effect of deductible temporary differences and deductible losses
232164986.26
for which deferred tax assets are not recognized in the year
Effect of tax-free income (Note) -1152685934.75
Effect of tax incentives and changes in tax rate -461574423.95
Effect of different tax rates of subsidiaries operating in other jurisdictions -191471358.38
Effect of utilizing deductible losses for which deferred tax assets
-47180168.14
were not recognized in prior period
Effect of adjustments to income tax of prior year -19545836.05
Others 87300562.43
Income tax expenses 1303579852.93
Note: This mainly represents the tax effect of income from investments in joint ventures and
associates.- 134 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
64. Assets with restricted ownership and use right
31/12/202331/12/2022
Item Gross carrying Gross carrying
Carrying amount Type of restriction Status of restriction Carrying amount Type of restriction Status of restriction
amount amount
Performance bonds
Cash and bank balances Performance bonds frozen funds for card
46535456.14 46535456.14 Restricted guarantee 9309145.94 9309145.94 Restricted guarantees
(Note 1) frozen funds etc. business of Bank of
Communications
Equity investment in
- - — — — — 2115796097.99 2115796097.99 Pledge Pledge of equity
CICT (Note 2)
Equity investment in
- - — — — — 1047063416.30 1047063416.30 Pledge Pledge of equity
TML (Note 2)
Fixed assets (Note 3) 330222332.58 291001239.59 Mortgage Mortgage borrowings 341870382.84 341870382.84 Mortgage Mortgage borrowings
Intangible assets
457654685.65 457654685.65 Mortgage Mortgage borrowings 222040259.68 222040259.68 Mortgage Mortgage borrowings
(Note 3)
Restricted
Construction in progress
- - — — — — 4298598.50 4298598.50 construction in Mortgage borrowings
(Note 3)
progress
Total 834412474.37 795191381.38 — — — — 3740377901.25 3740377901.25 — — — —
Note 1: Details of restricted cash and bank balances are set out in Note (VIII) 1.Note 2: Details of pledged equity are set out in Note (VIII) 34.Note 3: Details of mortgage borrowings are set out in Note (VIII) 24 and Note (VIII) 34.- 135 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
65. Provision for impairment of assets and provision for credit loss
Effect of translation
Effect of Other Other
Write-off and Transfer-out due of financial
changes in the Provision for Reversal for increases decreases
Item 31/12/2022 charge-off for to sale in the statements 31/12/2023
scope of the year the year for the for the
the year current year denominated in
consolidation year year
foreign currencies
Provision for credit loss of accounts
94013267.44-5662552.8920976076.79-11690687.60-8087700.00---1473959.3591022363.09
receivable
Provision for credit loss of other receivables 1003685597.76 -581674.48 3495816.21 -47368017.09 -73074.00 - - - -2076917.54 957081730.86
Provision for decline in value of inventories 1326130.64 - - -99456.13 - - - - 7953.87 1234628.38
Provision for credit loss of long-term
3875396.19-921438.82-3618668.31-----1178166.70
receivables
Provision for impairment of long-term equity
357168270.27-------5165805.49362334075.76
investments
Provision for impairment of fixed assets 63574868.76 - 149923619.44 - - - - - 5994.88 213504483.08
Provision for impairment of intangible assets 15537122.10 - 41473147.97 - - - - - - 57010270.07
Provision for impairment of goodwill 970663044.33 - - - - - - - - 970663044.33
Total 2509843697.49 -6244227.37 216790099.23 -62776829.13 -8160774.00 - - - 4576796.05 2654028762.27
- 136 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
66. Other comprehensive income net of tax
Details are set out in Note (VIII) 44.
67. Items in cash flow statement
(1) Cash relating to operating activities
Other cash receipts relating to operating activities
Item 2023 2022
Interest income 316807536.02 258843106.76
Government grants 163169407.30 146183117.33
Guarantees and deposits 59967562.07 56548699.29
Insurance indemnities 11868450.00 58668674.41
Rentals 11677109.86 6633711.38
Others 364073953.84 614917616.16
Total 927564019.09 1141794925.33
Other cash payments relating to operating activities
Item 2023 2022
Advance payment 191928420.03 328830785.30
Operating expenses such as operating costs
167200604.70136317839.62
and administrative expenses etc.Guarantees and deposits 59616680.63 47134870.60
Rentals 26007218.14 22559158.93
Harbor dues on cargo 7279452.46 14619372.24
Port charges 5743216.19 5422920.14
Others 395451467.06 471440206.57
Total 853227059.21 1026325153.40
(2) Cash relating to investing activities
Cash receipts relating to significant investing activities
Item 2023 2022
Recovered structured deposits 28397000000.00 40874000000.00
Recovered lending(Note 1) 2965681743.10 -
Dividends received 2186696975.69 2239605794.55
Funds for disposal of subsidiaries received (Note 2) 1683385533.43 -
Total 35232764252.22 43113605794.55
Note 1: It represents the recovery of RMB 2965681743.10 lent to Terminal Link SAS.Note 2: The funds received for disposal of subsidiaries during the year represent the amount
received for disposal of Ningbo Daxie.- 137 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Items in cash flow statement - continued
(2) Cash relating to investing activities - continued
Cash payments relating to significant investing activities
Item 2023 2022
Purchase of structured deposits 29967000000.00 36954000000.00
Investment funds - 17549460113.25
Total 29967000000.00 54503460113.25
Other cash receipts relating to investing activities
Item 2023 2022
Recovered lending by Terminal Link SAS 2965681743.10 -
Interest on advances for the project 177940904.60 169844015.81
Net cash receipts from acquisition of subsidiaries
-74295900.85
and other business units
Recovered principal for the advances of the project - 45535614.18
Others 21332655.57 5388978.50
Total 3164955303.27 295064509.34
Other cash payments relating to investing activities
Item 2023 2022
Performance guarantees for project development 39087797.69 -
Disposal of equity of subsidiaries 35267442.35 -
Payment of taxes on land acquisition and reserve by An
Tong Jie Terminal Warehouse Service (Shenzhen) Co. Ltd. - 947426040.54
("ATJ")
Others 8308063.29 7376441.76
Total 82663303.33 954802482.30
(3) Cash relating to financing activities
Other cash receipts relating to financing activities
Item 2023 2022
Sale and leaseback proceeds 328026212.50 50000000.00
Others 6728017.13 6303169.80
Total 334754229.63 56303169.80
- 138 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
67. Items in cash flow statement - continued
(3) Cash relating to financing activities - continued
Other cash payments relating to financing activities
Item 2023 2022
Repayment of perpetual bonds 4222148460.84 -
Payment for the Company's acquisition of minority interests
872848916.41660552076.54
of CM Port
Lease expenses paid 829455300.35 422373905.31
Payment for the Company's acquisition of minority interests
818659106.04-
of Oasis King International Limited
Payment for the Company's acquisition of minority interests
109901500.00-
of CM International Tech
Payment for non-public shares issued by the Company - 7778570.52
Others 14080546.68 33412187.98
Total 6867093830.32 1124116740.35
Changes in liabilities arising from financing activities
Increase for the year Decrease for the year
Item 31/12/2022 Non-cash Non-cash 31/12/2023
Cash changes Cash changes
changes changes
Short-term borrowings 7164338366.18 18324960509.40 531121750.39 10306375337.00 - 15714045288.97
Long-term borrowings 12390099177.85 11091911738.15 - 4325439446.26 929027515.03 18227543954.71
Non-current liabilities
11641223688.95-7930642448.3312695530031.3158931816.726817404289.25
due within one year
Bonds payable 19088293099.02 - 199215465.13 - 5000000000.00 14287508564.15
Lease liabilities 948350914.04 - 404265256.81 114686862.61 236757101.32 1001172206.92
Dividends payable 92374921.29 - 2924344643.64 2880173694.97 24648655.69 111897214.27
Other current liabilities 3017713424.64 6328026212.50 77180966.07 7415730466.23 - 2007190136.98
Total 54342393591.97 35744898460.05 12066770530.37 37737935838.38 6249365088.76 58166761655.25
(4) The Company has no cash flows presented on a net basis
(5) Significant activities that do not involve cash receipts and payment for the current period
but have an impact on the enterprise's financial position or may affect the enterprise's cash
flows in the future and their financial effects:
- 139 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Supplementary information 2023 2022 (Restated)
1. Reconciliation of net profit to cash flows from operating activities: — — — —
Net profit 7495612085.76 8231903300.27
Add: Provision for impairment of assets 191297311.28 22159020.20
Provision for impairment of credit -37284041.18 223473576.55
Depreciation of fixed assets 1983548731.36 2015080231.04
Depreciation of investment properties 182833076.22 184276397.36
Depreciation of right-of-use assets 357502960.45 349846619.98
Amortization of intangible assets 686879674.72 663429174.32
Amortization of long-term prepaid expenses 92971461.67 84874394.19
Losses (Gains) from disposal of fixed assets intangible assets
-36759532.61-55130095.52
and other long-term assets (Losses are marked with "-")
Losses on retirement of fixed assets intangible assets
22581096.79159482391.55
and other long-term assets
Losses (Gains) from changes in fair value (Losses are marked
-73352800.52129033650.11
with "-")
Financial expenses 2185350735.70 2532320466.47
Investment loss (income) (Losses are marked with "-") -6348676940.80 -7377655506.33
Decrease in deferred tax assets 19435343.92 20145903.44
Increase in deferred tax liabilities 154719636.24 221384317.36
Decrease (Increase) in inventories (Losses are marked with "-") 6316130.87 -30798761.65
Decrease (Increase) in operating receivables (Losses are
-132511582.62-245987914.80
marked with "-")
Increase (Decrease) in operating payables (Losses are marked
-170856712.08-207459774.19
with "-")
Net cash flows from operating activities 6579606635.17 6920377390.35
2. Significant investing and financing activities that do not involve
————
cash receipts and payments:
Conversion of debt into capital - -
Convertible bonds due within one year - -
3. Net changes in cash and cash equivalents: — —
Closing balance of cash 16018613631.10 13567309471.62
Less: Opening balance of cash 13567309471.62 12727355238.36
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase in cash and cash equivalents 2451304159.48 839954233.26
(2) Cash and cash equivalents
Item 31/12/2023 31/12/2022
I. Cash 16018613631.10 13567309471.62
Including: Cash on hand 974692.93 726960.10
Bank deposits available for payment at any time 16009954475.85 13045336190.09
Other monetary funds available for payment at any time 7684462.32 521246321.43
II. Cash equivalents - -
III. Balance of cash and cash equivalents at the end of the year 16018613631.10 13567309471.62
- 140 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
68. Supplementary information to the cash flow statement - continued
(3) Net cash receipts from disposal of subsidiaries
Amount
Cash or cash equivalents received in the current year from disposal of subsidiaries
1797936550.00
in the current year
Including: Ningbo Daxie 1714909050.00
Dalian Port Logistics Network Co. Ltd. 63716000.00
Yingkou Gangxin Technology Co. Ltd. 19311500.00
Less: Cash and cash equivalents held by subsidiaries on the date when control is lost 149818458.92
Including: Ningbo Daxie 31523516.57
Dalian Port Logistics Network Co. Ltd. 86068813.26
Yingkou Gangxin Technology Co. Ltd. 32226129.09
Add: Cash or cash equivalents received in the current year from disposal of
-
subsidiaries in prior periods
Including: Ningbo Daxie -
Dalian Port Logistics Network Co. Ltd. -
Yingkou Gangxin Technology Co. Ltd. -
Net cash receipts from disposal of subsidiaries 1648118091.08
(4) The Company has no items with restricted use but are still presented as cash and cash
equivalents.
(5) Cash and bank balances not classified as cash and cash equivalents
Items 2023 2022 Reason
Restricted guarantees 44697370.16 9297145.94 Restricted scope of use
Interest receivable from bank deposits 14497091.00 16126969.60 Not actually received
Not available for
Funds frozen for litigation 1826085.98 -
withdrawal at any time
Not available for
Guarantees frozen for ETC 12000.00 12000.00
withdrawal at any time
Interest on time deposit - 23183152.24 Not actually received
Total 61032547.14 48619267.78 /
- 141 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
69. Foreign currency monetary items
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Cash and bank balances 2988104992.31
Including: HKD 19647056.77 0.9062 17804555.79
USD 317185988.33 7.0827 2246533199.54
RMB 408295641.99 1.0000 408295641.99
EUR 40140420.78 7.8592 315471594.99
Accounts receivable 173075521.17
Including: HKD 512979.31 0.9062 464872.11
USD 1423085.41 7.0827 10079287.03
EUR 20680395.21 7.8592 162531362.03
Other receivables 799457535.30
Including: HKD 524271214.69 0.9062 475105060.18
USD 1343324.84 7.0827 9514366.84
EUR 9691705.64 7.8592 76169052.97
RMB 238669055.31 1.0000 238669055.31
Long-term receivables 282209825.00
Including: EUR 25995028.12 7.8592 204300125.00
Short-term borrowings 6885485000.00
USD 550000000.00 7.0827 3895485000.00
RMB 2990000000.00 1.0000 2990000000.00
Accounts payable 40104170.70
Including: HKD 1173832.48 0.9062 1063750.47
USD 44617.49 7.0827 316012.30
EUR 4927270.96 7.8592 38724407.93
Other payables 668048202.56
Including: HKD 32251917.27 0.9062 29227332.47
USD 39743432.26 7.0827 281490807.67
EUR 13924592.03 7.8592 109436153.68
RMB 247893908.74 1.0000 247893908.74
Non-current liabilities due
175706225.87
within one year
Including: USD 23489155.23 7.0827 166366639.76
RMB 9339586.11 1.0000 9339586.11
Long-term borrowings 4656000000.00
Including: RMB 4656000000.00 1.0000 4656000000.00
Bonds payable 11287508564.15
Including: USD 1593673113.95 7.0827 11287508564.15
Long-term payables 9391615.50
Including: HKD 2366680.97 0.9062 2144733.63
USD 1023180.69 7.0827 7246881.87
- 142 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
70. Leases
(1) Lessor under operating lease
Item Amount
I. Revenue — —
Lease income 288005772.42
Including: Income related to variable lease payments that are not included
-
in lease receipts
II. Undiscounted lease receipts received after the balance sheet date — —
1st year 206915451.16
2nd year 144032701.64
3rd year 118298471.55
4th year 83869818.08
5th year 45923854.38
Over 5 years 121551555.20
Note: The operating leases where the Group acts as the lessor are related to port and terminal
facilities machinery and equipment vehicles land and buildings with lease terms ranging
from 1 month to 50 years and option to renew the lease of port and terminal facilities
machinery and equipment land and buildings. The Group considers that the unguaranteed
balance of leased assets does not constitute significant risk of the Group as the assets are
properly used.
(2) Lessee
Item Amount
Interest expenses on lease liabilities 60834329.16
Short-term lease expenses that are accounted for using simplified approach
55635496.52
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 2564521.41
cost of related assets or profit or loss for the period
Variable lease payments that are included in cost of related assets or profit or loss
-
but not included in measurement of lease liabilities
Including: The portion arising from sale and leaseback transactions -
Income from sub-lease of right-of-use assets 11364199.51
Total cash outflows relating to leases 837856182.83
Income (loss) from sale and leaseback transactions 61743409.02
Cash inflows from sale and leaseback transactions 328026212.50
Cash outflows from sale and leaseback transactions 520496584.08
Others -
- 143 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
70. Leases - continued
(2) Lessee - continued
Sale and leaseback transactions and basis for determination:
Note: For the purpose of raising funds and leasing back for use the Company carries out sale and
leaseback transaction with the legally owned terminal assets as the subject of the transfer
and the leased assets for a term of three years. As the Company is entitled to repurchase at
the expiry of the lease term and the repurchase price is not lower than the original selling
price it is considered as a financing transaction and is recognized as a long-term payable
when the amount is received from the lessor and the difference between the original selling
price and the repurchase price is recognized as interest expenses.(IX) R&D EXPENDITURE
1. Disclosure by nature of expenses
Item 2023 2022
Employee benefits 166273348.83 222334684.01
Direct materials and outsourced R&D 78769899.84 57140031.23
Depreciation and amortisation 11654856.90 16295546.56
Others 15963664.54 23694839.98
Total 272661770.11 319465101.78
Including: R&D expenditure recorded as expenses 223739072.07 287706178.70
R&D expenditure capitalised 48922698.04 31758923.08
- 144 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(IX) R&D EXPENDITURE - continued
2. Development expenditure for R&D projects that qualify for capitalisation
Increase Decrease
Internal
Item 31/12/2022 Recognised as fixed Recognised as Transferred to profit 31/12/2023
development
assets intangible assets or loss for the period
expenditure
Eport - 30150532.71 - - - 30150532.71
Other R&D projects 17412196.16 19364847.34 15065485.70 279255.32 592682.01 20839620.47
Total 17412196.16 49515380.05 15065485.70 279255.32 592682.01 50990153.18
(X) CHANGES IN SCOPE OF CONSOLIDATION
1. Disposal of subsidiaries
Loss of control over subsidiaries
Amount of other
Difference between disposal Proportion of comprehensive income
Disposal Disposal Disposal
Determination basis consideration and shares of remaining equity related to equity
Point in time of consideration at proportion at approach at
Name of the subsidiary for point in time of corresponding net assets of at the date of investments of the original
losing control point in time of losing point in time of point in time of
losing control the subsidiary at losing control subsidiary transferred to
control losing control (%) losing control
consolidated level (%) investment gains or losses
or retained earnings
Completion of
Ningbo Daxie August 2023 1845000000.00 45.00 Transfer of equity transaction and transfer 205336602.02 - -
of control
Completion of
Dalian Port Logistics Network
November 2023 63716000.00 79.03 Transfer of equity transaction and transfer 19694127.20 - -
Co. Ltd.of control
Completion of
Gangxin Technology November 2023 19311500.00 100.00 Transfer of equity transaction and transfer -8080826.75 - -
of control
- 145 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group - Major subsidiaries
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 Wharf Holdings (Hong Kong) Ltd. Investment
HK China HK China HKD 1000000 100.00 - Established through investment
(Wharf Holdings Hong Kong) holding
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 48.90
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
Shenzhen Shenzhen Business combination involving
ATJ the warehousing HKD 100000000 - 100.00
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
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Mawan Port Services Co. Ltd. 20000.00 - 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. ("Xiamenwan 44450.00 - 31.00
China China services enterprises under common control
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
- 146 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - Major subsidiaries - continued
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 Shenzhen Logistics support Business combination involving
Shenzhen Haixing 53072.92 - 67.00
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 USD Business combination involving
Sri Lanka Sri Lanka - 85.00
Limited services 1145480000 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 Business combination involving
80000.00-100.00
Co. Ltd. China China etc. enterprises under common control
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
Shenzhen Shenzhen Owning China HKD Business combination involving
Malai Warehousing (Shenzhen) Co. Ltd - 100.00
China China Qianhai property 1600000000 enterprises under common control
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 34489.79 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.("SACL") ( Note 5) services 37140000
- 147 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - Major subsidiaries - continued
Note 1: On 19 June 2018 the Company and China Merchants Group (Hong Kong) Co. Ltd.("CMHK") entered into an "Agreement of Concerted Action on China Merchants Port
Holdings Company Limited". According to the agreement CMHK unconditionally keeps
consistent with the Company when voting for the matters discussed at the general
shareholders' meeting of CM Port in respect of its voting power of CM Port as entrusted
and performs the voting as per the Company's opinion. In March 2022 the Company
transferred its 43.00% equity contribution in China Merchants Port Holdings Company
Limited to the wholly-owned subsidiary Ports Development (Hong Kong) Co. Ltd.In June and October 2023 CM Port respectively distributed 2022 dividends and 2023
interim dividends to shareholders. The shareholders may select to receive the dividends
all in cash or shares or receive the dividends part in cash and part in new shares. The
Company and Ports Development (Hong Kong) Co. Ltd. select to receive all dividends
attributable to their shareholdings in CM Port in the form of shares and CMHK selects to
receive the 2022 dividends in cash and the 2023 interim dividends attributable to its
shareholding in CM Port in the form of shares. In 2023 Ports Development (Hong Kong)
Co. Ltd. acquired 94702000 ordinary shares of CM Port from the secondary market.Upon the completion of above distribution and the transaction the proportion of the
ordinary shares of CM Port held by the Group to the total issued ordinary shares of CM
Port was changed from 45.69% to 49.28% while the proportion of the ordinary shares of
CM Port held by CMHK to the total issued ordinary shares of CM Port was changed from
22.42% to 21.85%. Therefore the Company has 71.13% voting power on CM Port in total
and is able to exercise control over CM Port.Note 2: The Group and China Merchants Zhangzhou Development Zone Co. Ltd. entered into an
"Equity Custody Agreement" according to which China Merchants Zhangzhou
Development Zone Co. Ltd. entrusted its 29% equity of ZCMG to the Group for operation
and management. Therefore the Group has 60% voting power of ZCMG and includes it
in the scope of consolidation of the consolidated financial statements.Note 3: The Group is entitled to the nomination of most members of the executive commission
and has control over Lome Container Terminal S.A. Therefore the Group includes it in
the scope of consolidation of the consolidated financial statements.Note 4: The Group holds 50% equity interest in Zhanjiang Port Petrochemical Terminal Co. Ltd.According to the agreement the Group has control over Zhanjiang Port Petrochemical
Terminal Co. Ltd. and therefore includes it in the scope of consolidation of the
consolidated financial statements.Note 5: SACL is a limited liability company established by CM Port in Sri Lanka on 21 April
2023.
- 148 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(2) Significant non-wholly-owned subsidiaries
Proportion of Profit or loss Dividends distributed Balance of
Name of the ownership interest attributable to minority to minority minority interests
subsidiary held by the minority shareholders in the shareholders in the at the end of the
shareholders (%) current year current year year
CM Port 50.72 3790168766.29 1716130041.14 61593070426.41
- 149 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(3) Major financial information of significant non-wholly-owned subsidiaries
31/12/202331/12/2022
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 15917026132.04 135313877243.36 151230903375.40 18457977486.53 27802818508.45 46260795994.98 12837082258.94 137558098661.09 150395180920.03 18761895893.60 25152356977.50 43914252871.10
20232022
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 10503277811.44 6466697575.11 7608794449.88 4852710141.52 10926649847.41 7771272424.87 9468881467.49 5181954271.51
- 150 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
2. Transactions resulting from changes in ownership interests in subsidiaries without
losing control over the subsidiaries
(1) Description of changes in ownership interests in subsidiaries
During the year the Group's ownership interests in CM Port is changed from 45.69% to 49.28%.Details are set out in Note (XI) 1 (1).During the year the Group's ownership interests in CM International Tech is changed from 56.92%
to 100%.During the year the Group's ownership interests in Oasis King International Limited is changed
from 70.00% to 100%.
(2) Effect of the transactions on minority interests and equity attributable to owners of the
Company
Oasis King
CM International
CM Port International Total
Tech
Limited
Acquisition cost
- Cash 880259262.73 109901500.00 818659106.04 1808819868.77
- Fair value of non-cash assets 1398559890.07 - - 1398559890.07
Total acquisition cost 2278819152.80 109901500.00 818659106.04 3207379758.84
Less: Share of net assets of subsidiaries
calculated based on the proportion of 4547937480.41 82775475.48 819100518.20 5449813474.09
equity acquired
Difference -2269118327.61 27126024.52 -441412.16 -2242433715.25
Including: Adjustment to capital reserve 2269118327.61 -27126024.52 441412.16 2242433715.25
Adjustment to surplus reserve - - - -
Adjustment to unappropriated profit - - - -
3. Interests in joint ventures and associates
(1) Significant joint ventures or associates
Proportion of ownership
Accounting treatment
Principal place Place of interests held by the Group
Investee Nature of business of investments in
of business registration (%)
associates
Direct Indirect
Associate
Port and container
SIPG Shanghai PRC Shanghai PRC - 28.05 Equity method
terminal business
Port and container
Ningbo Zhoushan Ningbo PRC Ningbo PRC 20.98 2.10 Equity method
terminal business
- 151 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associate
SIPG
31/12/2023/31/12/2022/
20232022
Current assets 53049570240.87 46525054810.02
Including: Cash and cash equivalents 35721676040.14 26843326028.04
Non-current assets 150525944932.10 135276650788.84
Total assets 203575515172.97 181801705598.86
Current liabilities 22835359505.98 25863891496.14
Non-current liabilities 44553743360.00 34770765671.21
Total liabilities 67389102865.98 60634657167.35
Net assets 136186412306.99 121167048431.51
Minority interests 13010972126.11 8839640972.54
Net assets attributable to owners of the Company 123175440180.88 112327407458.97
Share of net assets calculated based on the proportion of
34550710970.7431507837792.24
ownership interests
Adjustments
- Goodwill 2427508397.27 2427508397.27
- Others 234665770.76 236552011.66
Carrying amount of equity investments in associates 37212885138.77 34171898201.17
Fair value of publicly quoted equity investments in associates 32003432940.50 34877210592.30
Operating income 37551570005.56 37279806723.63
Net profit 14007787452.35 17910112648.83
Other comprehensive income -58126233.99 -526788637.24
Total comprehensive income 13949661218.36 17383324011.59
Dividends received from associates in the current year 914383798.30 1240688187.97
Ningbo Zhoushan
31/12/2023
Current assets 19223549000.00
Including: Cash and cash equivalents 9635337000.00
Non-current assets 93105852000.00
Total assets 112329401000.00
Current liabilities 22201633000.00
Non-current liabilities 9429720000.00
Total liabilities 31631353000.00
Net assets 80698048000.00
Minority interests 5828457000.00
Net assets attributable to owners of the Company 74869591000.00
Share of net assets calculated based on the proportion of
17279901602.80
ownership interests
Adjustments
- Goodwill 1231115756.87
- Others 120136754.64
Carrying amount of equity investments in associates 18631154114.31
Fair value of publicly quoted equity investments in associates 15982528312.20
Operating income 25993200000.00
Net profit 5156174000.00
Other comprehensive income 76072000.00
Total comprehensive income 5232246000.00
Dividends received from a ssociates in the current year 390875794.33
- 152 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
4. Key financial information of significant associate - continued
Note: Ningbo Zhoushan has become an important associate this year and only disclosed financial
data for this year Ningbo Zhoushan's financial data are accurate to the nearest RMB
1000.00.
5. Summarized financial information of insignificant associates and joint ventures
31/12/2022
31/12/2023
Item / 2022
/2023
(Restated)
Joint ventures: — — — —
Total carrying amount of investments 8957993335.22 9716793055.72
Aggregate of following items calculated based on
————
the proportion of ownership interest
- Net profit 396604681.06 419341721.80
- Other comprehensive income -879272391.47 175421702.38
- Total comprehensive income -482667710.41 594763424.18
Associates: — — — —
Total carrying amount of investments 31864085187.97 48475602662.16
Aggregate of following items calculated based on
————
the proportion of ownership interest
- Net profit 831571993.78 2003274864.02
- Other comprehensive income 138977006.59 -300868120.56
- Total comprehensive income 970549000.37 1702406743.46
6. The investees where the Group holds long-term equity investments are not restricted
to transfer funds to the Group.(XII) GOVERNMENT GRANTS
1. Government grants recognised as receivables at the end of current year
Balance of receivables as at the end of current year 2181470.00
2. Liabilities involving government grants
Amount
New Amount
included in Other Related to
Item 31/12/2022 government included in 31/12/2023
non-operating changes assets/income
grants other income
income
Deferred income 1031273189.74 41207834.25 - 47704466.26 - 1024776557.73 Related to assets
Total 1031273189.74 41207834.25 - 47704466.26 - 1024776557.73 — —
- 153 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XII) GOVERNMENT GRANTS - continued
3. Government grants included in profit or loss
Item 2023 2022
Business development subsidy 113983657.91 94355004.33
Special fund for operation 18439586.22 7385898.57
Steady post subsidies 1682015.15 5771198.38
Others 15133244.06 42331663.35
Total 149238503.34 149843764.63
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS
The Group's major financial instruments include cash and bank balances held-for-trading financial
assets notes receivable accounts receivable receivables financing other receivables long-term
receivables other non-current financial assets borrowings notes payable accounts payable other
payables other current liabilities non-current liabilities due within one year bonds payable long-
term payables other non-current liabilities etc. Details of these financial instruments are disclosed
in Note (VIII). The risks associated with these financial instruments and the policies on how to
mitigate these risks are set out below. Management of the Group manages and monitors these
exposures to ensure the risks are monitored at a certain level.The Group adopts sensitivity analysis technique to analyse how the profit and loss for the period
and shareholders' equity would have been affected by reasonably possible changes in the relevant
risk variables. As it is unlikely that risk variables will change in an isolated manner and the
interdependence among risk variables will have significant effect on the amount ultimately
influenced by the changes in a single risk variable the following are based on the assumption that
the change in each risk variable is on a stand-alone basis.
1. Risk management objectives policies and procedures and changes for the period
The Group's risk management objectives are to achieve a proper balance between risks and yield
minimise the adverse impacts of risks on the Group's operation performance and maximise the
benefits of the shareholders and other stakeholders. Based on these risk management objectives the
Group's basic risk management strategy is to identify and analyse the Group's exposure to various
risks establish an appropriate maximum tolerance to risk implement risk management and
monitors regularly and effectively these exposures to ensure the risks are monitored at a certain
level.- 154 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS 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 and EUR. Except for
part of the purchases and sales the Group's other principal activities are denominated and settled in
RMB. As at 31 December 2023 the balances of the Group's assets and liabilities are both
denominated in functional currency except that the assets and liabilities set out below are recorded
using foreign currencies. Currency risk arising from the foreign currency balance of assets and
liabilities may have impact on the Group's performance.Item 31/12/2023 31/12/2022
Cash and bank balances 487182682.32 799833569.05
Accounts receivable 10544159.14 29766083.42
Other receivables 339131902.71 360531571.16
Long-term receivables 204300125.00 -
Short-term borrowings 2990000000.00 4090000000.00
Accounts payable 1379762.77 2372883.60
Other payables 300187007.82 246131122.92
Non-current liabilities due within one year 9339586.11 670000000.00
Long-term borrowings 4656000000.00 3669000000.00
Long-term payables 9391615.50 -
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's
currency risk exposures. According to the current risk exposure and judgment on the exchange rate
movements the management considers it is unlikely that the exchange rate changes in the next year
will result in significant loss to the Group.- 155 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS 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:
20232022
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 -362713439.88 -362713439.88 -383846068.61 -383846068.61
All foreign currencies 5% decrease against RMB 362713439.88 362713439.88 383846068.61 383846068.61
All foreign currencies 5% increase against USD -18083083.38 -18083083.38 5221127.37 5221127.37
All foreign currencies 5% decrease against USD 18083083.38 18083083.38 -5221127.37 -5221127.37
All foreign currencies 5% increase against HKD 23046933.58 23046933.58 3837255.04 3837255.04
All foreign currencies 5% decrease against HKD -23046933.58 -23046933.58 -3837255.04 -3837255.04
5% increase against EUR
All foreign currencies 11592634.53 11592634.53 419047.06 419047.06
(including FCFA)
5% decrease against EUR
All foreign currencies -11592634.53 -11592634.53 - 419047.06 - 419047.06
(including FCFA)
1.1.2 Interest rate risk - changes in cash flows
Risk of changes in cash flows of financial instruments arising from interest rate changes is mainly
related to bank loans with floating interest rate. (See Note (VIII) 24 and Note (VIII) 34). The Group
continuously and closely monitors the impact of interest rate changes on the Group's interest rate
risk. The Group's policy is to maintain these borrowings at floating rates. Presently the Group has
no arrangement such as interest rate swaps.- 156 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS 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:
20232022
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 -342406182.88 -342406182.88 -207621560.74 -207621560.74
long-term borrowings
Short-term borrowings and
1% decrease 342406182.88 342406182.88 207621560.74 207621560.74
long-term borrowings
1.2 Credit risk
As at 31 December 2023 the Group's maximum exposure to credit risk which will cause a financial
loss to the Group due to failure to discharge an obligation by the counterparties and financial
guarantees issued by the Group (without considering the available collateral or other credit
enhancements) is arising from cash and bank balances (Note (VIII) 1) notes receivable (Note
(VIII) 3) accounts receivable (Note (VIII) 4) other receivables (Note (VIII) 7) long-term
receivables (Note (VIII) 11) etc. At the balance sheet date the carrying amounts of the Group's
financial assets represent its maximum exposure to credit risk. In addition the Group's maximum
credit risk exposure to credit losses includes the amount of financial guarantee contract as disclosed
in Note (XVII) 2 "Contingencies".- 157 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIII) RISKS 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 credit
loss is made for relevant financial assets. In this regard the management of the Group considers
that the Group's credit risk is significantly reduced.The credit risk on cash and bank balances is limited because they are deposited with financial
institutions with high credit ratings.The Group has no significant concentration of credit risk with exposure spread over a number of
counterparties and customers.The Group has adopted a policy to ensure that all sales customers have good credit records.
1.3 Liquidity risk
In the management of the liquidity risk the Group monitors and maintains a level of cash and cash
equivalents deemed adequate by the management to finance the Group's operations and mitigate
the effects of fluctuations in cash flows. The management monitors the utilisation of bank
borrowings and ensures compliance with loan covenants.As at 31 December 2023 the Group had total current liabilities in excess of total current assets of
RMB 5612418164.44. As at 31 December 2023 the Group had available and unused line of credit
and bonds amounting to RMB 69439268355.68 which is greater than the balance of the net
current liabilities. The Group can obtain financial support from the available line of credit and bonds
when needed. Therefore the Group's management believes that the Group has no significant
liquidity risk.The following is the maturity analysis for financial assets and financial liabilities held by the Group
which is based on undiscounted remaining contractual obligations:
Item Carrying amount Gross amount Within 1 year 1 to 5 years Over 5 years
Short-term borrowings 15714045288.97 16173813350.97 16173813350.97 - -
Notes payable 73461165.82 73461165.82 73461165.82 - -
Accounts payable 691765137.25 691765137.25 691765137.25 - -
Other payables 1654622170.02 1654622170.02 1654622170.02 - -
Non-current liabilities due
6745613464.047946167971.577946167971.57--
within one year
Other current liabilities 2143842534.53 2153429383.85 2153429383.85 - -
Long-term borrowings 18227543954.71 19240642199.11 - 17013554984.11 2227087215.00
Bonds payable 14287508564.15 15590487807.53 - 15590487807.53 -
Lease liabilities 1001172206.92 2484068796.64 - 282009548.65 2202059247.99
Long-term payables 3817255549.15 6096325412.76 - 826260924.50 5270064488.26
Related-party guarantees 347437758.18 347437758.18 114527259.00 156254811.86 76655687.32
- 158 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Fair value at 31/12/2023
Level 1 Level 2 Level 3
Item
Fair value Fair value Fair value Total
measurement measurement measurement
Continuously measured at fair value
Held-for-trading financial assets - 4568806108.84 - 4568806108.84
Receivables financing - - 2001669.46 2001669.46
Investments in other equity instruments - - 157461648.16 157461648.16
Other non-current financial assets 850222729.23 - 27353713.60 877576442.83
Total assets continuously measured
850222729.234568806108.84186817031.225605845869.29
at fair value
2. Basis for determining the market price of items continuously measured at level 1 fair
value
The market prices of held-for-trading financial assets and other non-current financial assets are
determined based on the closing price of the equity instruments at Stock Exchange at 31 December
2023.
3. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 2 fair value
Fair value at
Item Valuation techniques Inputs
31/12/2023
Expected rate of
Held-for-trading financial assets 4568806108.84 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.
4. Qualitative and quantitative information of valuation techniques and key parameters
adopted for items continuously measured at level 3 fair value
Fair value at
Item Valuation techniques Inputs
31/12/2023
Receivables financing 2001669.46 Cash flow discounting Discount rate
Investments in other equity
157461648.16 Net worth method Carrying amount
instruments
Other non-current financial assets 737436.89 Net worth method Carrying amount
Other non-current financial assets 26616276.71 Listed company comparison approach Share price
The fair value of non-listed equity instruments included in equity instruments at fair value through
profit or loss or other comprehensive income is determined using the valuation techniques such as
net worth method listed company comparison approach etc.- 159 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE - continued
5. Fair value of financial assets and financial liabilities not measured at fair value
The financial assets and liabilities not measured at fair value mainly include notes receivable
accounts receivable other receivables short-term borrowings notes payable accounts payable
other payables long-term borrowings bonds payable lease liabilities and long-term payables etc.The Group's management believes that the carrying amounts of financial assets and financial
liabilities at amortized cost in the financial statements approximate their fair values.- 160 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED 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 63.01 (Note)
Note: Broadford Global Limited directly holds 2.21% equity of the Company and indirectly holds 14.84% and 45.96% equity of the Company through
the subsidiaries China Merchants Gangtong Development (Shenzhen) Co. Ltd. and China Merchants Port Investment Development Company
Limited respectively. The ultimate controlling shareholder of the Company is China Merchants Group.
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in Note (X) 1 Note (XI) 1.- 161 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED 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
Guizhou East Land Port Operation Co. Ltd. Joint venture
Qingdao Qianwan United Container Terminal Co. Ltd. Joint venture
Qingdao Qianwan West Port United Wharf Co. Ltd. Joint venture
Qingdao Qianwan New United Container Terminal Co. Ltd. Joint venture
COSCO Logistics (Zhanjiang) Co. Ltd. Joint venture
China Ocean Shipping Agency (Zhanjiang) Co. Ltd Joint venture
Yantai Port Group Laizhou Port Co. Ltd. Joint venture
Qingdao Wutong Century Supply Chain Co. Ltd. Joint venture
China Merchants Port (Shenzhen) Industrial Innovation Private Equity
Joint venture
Investment Fund Partnership (Limited Partnership) ("Investment Fund")
Doraleh Multi-purpose Port Associate
Great Horn Development Company FZCo Associate
International Djibouti Industrial Parks Operation FZCo Associate
Port de Djibouti S.A. Associate
Terminal Link SAS Associate
Tin-Can Island Container Terminal Ltd Associate
Guizhou Qiandongnan Continental Land Port Operation Co. Ltd. Associate
Nanshan Group and its subsidiaries Associate
SIPG Associate
Ningbo Zhoushan and its subsidiaries Associate
Shenzhen Baohong Technology Co. Ltd. Associate
Tianjin Haitian Bonded Logistics Co. Ltd. Associate
Merchants Port City Associate
Zhanjiang Xiagang United Development Co. Ltd. Associate
Chu Kong River Trade Terminal Co. Ltd. Associate
Shantou Zhonglian Tally Co. Ltd Associate
Shantou International Container Terminals Limited Associate
Shenzhen Bay Electricity Industry Co. Ltd. Associate
Tianjin Port Container Terminal Co. Ltd. Associate
Lac Assal Investment Holding Company Limited Associate
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Associate
Ningbo Port Container Transportation Co. Ltd. Associate
Shenzhen Chiwan Haike Industrial Operation Co. Ltd. Associate
Associate controlled by the same
Liaoning Port and its subsidiaries
ultimate controlling shareholder
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. Associate
Antong Holdings and its subordinate companies Associate
- 162 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company
Name of other related parties Relationship with the Company
Zhoushan Blue Ocean Investment Co. Ltd. Minority shareholder of subsidiary
Sri Lanka Ports Authority Minority shareholder of subsidiary
Guangdong Shunkong City Investment Real Estate Co. Ltd. Minority shareholder of subsidiary
Zhanjiang Infrastructure Construction Investment Group Co. Ltd. Minority shareholder of subsidiary
Dalian Port Logistics Technology Co. Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Communications Engineering Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Guangdong Co. Ltd. Controlled by the same ultimate controlling shareholder
Hoi Tung (Shanghai) Company Limited Controlled by the same ultimate controlling shareholder
South China Sinotrans Supply Chain Management Co. Ltd. Controlled by the same ultimate controlling shareholder
EuroAsia Dockyard Enterprise and Development Limited Controlled by the same ultimate controlling shareholder
Qingdao Bonded Logistics Park Sinotrans Warehousing Logistics
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 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 Port Investment Development Company Limited Controlled by the same ultimate controlling shareholder
China Merchants Finance Lease (Shanghai) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Finance Lease (Tianjin) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shekou Industrial Zone Holdings Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchant Food (China) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Tongshang Finance Lease Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Power Supply Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Securities Co. Ltd. Controlled by the same ultimate controlling shareholder
China Traffic Import and Export Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Changhang Group Limited Controlled by the same ultimate controlling shareholder
Shenzhen Dehan Investment Development Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Guangdong Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Healthcare (Qichun) Co. Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Tally Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Central China Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans (HK) Shipping Limited Controlled by the same ultimate controlling shareholder
Sinoway Shipping Ltd. Controlled by the same ultimate controlling shareholder
- 163 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company - continued
Name of other related parties Relationship with the Company
China Merchants Heavy Industry (Jiangsu) Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Shantou Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants-Logistics Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Co. Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Agency Shenzhen Co. Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Ningbo Co. Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines (Hong Kong) Company Limited Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines Co. Ltd. Controlled by the same ultimate controlling shareholder
Yingkou Port Group Co. Ltd. and its subsidiaries
Controlled by the same ultimate controlling shareholder
("Yingkou Port Group")
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
Controlled by the same ultimate controlling shareholder
LIMITED
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
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
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
- 164 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions
(1) Rendering and receipt of services
Pricing method and
decision procedures
Related party Content of transaction 2023 2022
of related
transactions
Receipt of services:
Shenzhen Bay Electricity Industry Co. Ltd. Service expense Negotiation 56553895.23 55476519.62
Shenzhen Nanyou (Holdings) Ltd. Service expense Negotiation 37373052.06 5764441.32
China Merchants (Shenzhen) Power Supply Co. Ltd. Service expense Negotiation 19085551.42 17893208.32
Qingdao Qianwan West Port United Wharf Co. Ltd. Service expense Negotiation 18954315.25 18229532.95
China Merchants Property Management (Shenzhen)
Service expense Negotiation 15013993.93 7959601.92
Co. Ltd.Nanshan Group and its subsidiaries Service expense Negotiation 12922553.88 20553330.63
Ocean Driller III Limited Service expense Negotiation 12444743.72 -
Shenzhen West Port Security Service Co. Ltd. Service expense Negotiation 11300450.18 11952754.94
Yiu Lian Dockyards Limited Service expense Negotiation 8104140.51 8489653.19
Ningbo Zhoushan and its subsidiaries Service expense Negotiation 7569178.76 14417120.66
China Merchants Zhangzhou Development Zone Power
Service expense Negotiation 6449368.77 5562706.02
Supply Co. Ltd.International Djibouti Industrial Parks Operation FZCo Service expense Negotiation 6264666.66 2344919.84
Hoi Tung (Shanghai) Company Limited Service expense Negotiation 5014184.85 19923373.82
China Merchants Commercial Property Investment
Service expense Negotiation 5000000.00 3896620.63
(Shenzhen) Co. Ltd.Other related parties Service expense Negotiation 37272690.46 60512567.41
Purchase of structured
China Merchants Bank Co. Ltd. Negotiation 3180000000.00 900061111.11
deposits
China Merchants Group Finance Company Limited Interest expense Negotiation 26303900.66 74066413.54
China Merchants Bank Co. Ltd. Interest expense Negotiation 17596634.76 8970399.98
China Merchants Finance Lease (Tianjin) Co. Ltd. Interest expense Negotiation 2117332.10 724437.17
Total 3485340653.20 1236798713.07
Rendering of service:
COSCO Logistics (Zhanjiang) Co. Ltd. Service income Negotiation 243101038.82 203783472.45
Antong Holdings and its subordinate companies Service income Negotiation 108978140.94 124308389.86
Liaoning Port and its subsidiaries Service income Negotiation 80155659.35 165608963.82
China Ocean Shipping Agency (Zhanjiang) Co. Ltd Service income Negotiation 75114485.59 59100409.00
Qingdao Qianwan United Container Terminal Co. Ltd. Service income Negotiation 69319211.87 61896678.04
China Marine Shipping Agency Guangdong Co. Ltd. Service income Negotiation 36263254.23 57816828.74
China Merchants International Shipping Agency
Service income Negotiation 26223978.84 29854035.10
(Shenzhen) Co. Ltd.Yingkou Port Group Co. Ltd. and its subsidiaries
Service income Negotiation 25600739.56 41932643.50
("Yingkou Port Group")
Yiu Lian Dockyards (Shekou) Limited Service income Negotiation 12403540.05 15088720.57
Sinotrans Container Lines Co. Ltd. Service income Negotiation 11703055.83 7891652.35
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. Service income Negotiation 10684159.25 5354930.31
New Land-Sea Corridor Operation (Zhanjiang) Co. Ltd. Service income Negotiation 9724814.72 -
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Service income Negotiation 8632714.51 8665860.83
Shenzhen Baohong Technology Co. Ltd. Service income Negotiation 8201361.90 5562857.25
China Merchants International Cold Chain (Shenzhen)
Service income Negotiation 7196978.46 4050145.80
Company Limited
China Merchants Port Investment Development Company
Service income Negotiation 6905698.13 1907632.07
Limited
China Ocean Shipping Agency Shenzhen Co. Ltd. Service income Negotiation 6779104.47 4966841.25
Other related parties Service income Negotiation 81221890.50 141359228.82
Terminal Link SAS Service income Negotiation 138262807.50 169844015.81
Port of Newcastle and its subsidiaries Service income Negotiation 55424394.92 17721583.77
China Merchants Bank Co. Ltd. Service income Negotiation 51248973.95 105426962.23
China Merchants Group Finance Company Limited Service income Negotiation 33052458.75 25519980.42
Tianjin Haitian Bonded Logistics Co. Ltd. Service income Negotiation 1210342.38 1558375.91
China Merchants Union (BVI) limited Default income Negotiation 34137339.48 -
Total 1141546144.00 1259220207.90
- 165 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED 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
Qingdao Qianwan West Port United Wharf Co. Ltd. Buildings and structures Negotiation 14311677.72 10222395.86
Qingdao Bonded Logistics Park Sinotrans Warehousing Port and terminal
Negotiation 6680118.90 6876165.97
Logistics Co. Ltd. facilities
China Merchant Food (China) Co. Ltd. Buildings and structures Negotiation 5964675.96 5683461.66
China Traffic Import and Export Co. Ltd. Buildings and structures Negotiation 5473072.56 5473072.56
Qingdao Sinotrans Mining Technology Co. Ltd. Buildings and structures Negotiation 4750557.12 4750557.12
Qingdao Sinotrans Supply Chain Management Co. Ltd. Buildings and structures Negotiation 3438231.48 3558552.62
Qingdao Qianwan United Container Terminal Co. Ltd. Buildings and structures Negotiation 3323938.08 3037651.81
Equipment and storage
CM Port Chuangrong (Shenzhen) Technology Co. Ltd. Negotiation 2719625.46 1819957.10
yards
Qingdao Wutong Century Supply Chain Co. Ltd. Buildings and structures Negotiation 2705626.50 2119296.03
China Merchants Securities Co. Ltd. Buildings and structures Negotiation 2697967.83 2567514.78
Nanshan Group and its subsidiaries Buildings and structures Negotiation 2283922.57 5065342.55
Yiu Lian Dockyards (Shekou) Limited Buildings and structures Negotiation 2268270.47 2195466.64
Qingdao Sinotrans Logistics Co. Ltd. Buildings and structures Negotiation 2064723.80 -
China Merchants Real Estate (Shenzhen) Co. Ltd. Buildings and structures Negotiation - 7152157.00
Buildings and
Other related parties structures land use Negotiation 5928324.10 5600826.68
rights
Total 64610732.55 66122418.38
- 166 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED 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
2023202220232022202320222023202220232022
Port and terminal facilities
China Merchants Finance Lease (Shanghai) Co. Ltd. - - - - 110343653.60 116152138.56 7734573.29 13517478.02 - -
Machinery and equipment
Buildings and structures Port
Nanshan Group and terminal facilities Land 34242.32 28161.16 - - 69881796.93 72311711.35 4454094.13 7595712.33 - 9903480.08
use right Others
China Merchants Tongshang Finance Lease Co. Ltd. Machinery and equipment - - - - 46381918.54 64099065.58 1266294.12 3844907.71 - -
China Merchants Finance Lease (Tianjin) Co. Ltd. Port and terminal facilities - - - - 41997224.42 38839274.64 4035780.92 4986303.85 - -
China Merchants Shekou Industrial Zone Holdings Port and terminal facilities
----36699122.6236699122.621209619.983046636.4791911426.8378187153.30
Co. Ltd. Land use right
EuroAsia Dockyard Enterprise and Development
Port and terminal facilities - - - - 14908924.82 14696367.93 446855.68 440484.85 14462069.14 14255883.08
Limited
Shenzhen Qianhai Shekou Free Trade Investment Port and terminal facilities
7937320.807892513.32--8175440.388175440.38----
Development Co. Ltd. Land use right
China Merchants Commercial Property Investment
Buildings and structures - - - - 6488599.40 6473427.40 471603.69 181534.99 10920656.12 -
(Shenzhen) Co. Ltd.Shenzhen Nanyou (Holdings) Ltd. Land use right 1655096.34 1995553.15 - - 1995553.20 1995553.15 - - - -
China Merchants International Cold Chain
Port and terminal facilities 148500.00 859290.00 - - 1893762.89 2782367.73 32922.55 83666.10 - -
(Shenzhen) Company Limited
Shenzhen Wanhai Building Management Co. Ltd. Buildings and structures - - - - 1881947.00 1202209.02 70805.86 106595.46 1708272.10 -
- 167 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties - continued
The Group as the lessee: - continued
Short-term lease expenses or Variable lease payments that
expenses on leases of low- are not included in the Interest expenses on lease
Rental paid Addition to right-of-use assets
Name of the lessor Type of leased assets value assets that are accounted measurement of lease liabilities
for using simplified approach liabilities
2023202220232022202320222023202220232022
Dalian Bonded Zone Yongdexin Real Estate
Buildings and structures - - - - 413854.72 408741.23 - - - 393967.46
Development & Construction Co. Ltd.China Merchants Apartment Development
Buildings and structures 144662.87 142674.30 - - 142674.30 142674.30 - - - -
(Shenzhen) Co. Ltd.Dalian Port Group Corporation Limited Buildings and structures - - - - 80000.00 80000.00 5613.75 9766.56 - -
Dalian Port Communications Engineering Co. Ltd. Buildings and structures - - - - 50000.00 50000.00 8196.73 11498.73 - -
Shenzhen Chiwan Haike Industrial Operation
Buildings and structures - 1101345.84 - - - 1200466.97 - - - `
Co. Ltd.Qingdao Qianwan United Container Terminal
Port and terminal facilities - - - - - 662285.71 - 18421.02 - 1079443.53
Co. Ltd.Total 9919822.33 12019537.77 - - 341334472.82 365970846.57 19736360.70 33843006.09 119002424.19 103819927.45
- 168 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED 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
2023
Terminal Link SAS (Note 1) 76655687.32 76655687.32 11 June 2013 2033 No
Khor Ambado FZCo (Note 2) 203981760.00 156254811.86 24 May 2019 2032 No
Terminal Link SAS (Note 1) 114527259.00 114527259.00 25 Jan 2023 2030 No
Total 395164706.32 347437758.18 — — — — — —
2022
Terminal Link SAS (Note 1) 66490102.62 66490102.62 11 June 2013 2033 No
Khor Ambado FZCo (Note 2) 200580480.00 120182425.59 24 May 2019 2032 No
Total 267070582.62 186672528.21 — — — — — —
Note 1: CMA CGM S.A. is another shareholder of Terminal Link SAS an associate of the Group.The Group has made a commitment to CMA CGM S.A. that the Group will provide
guarantee for its bank loans and other liabilities to Terminal Link SAS to the extent of the
Group's 49% ownership interest in the company. The actual guaranteed amount is RMB
191182946.32as at 31 December 2023. If any guarantee liability occurs the Group will
compensate CMA CGM S.A.Note 2: Khor Ambado FZCo is a related party of the Group's ultimate controlling shareholder. The
Group provides guarantee for its bank loans and other liabilities the actual amount of
which as at 31 December 2023 is RMB 156254811.86.
(4) Borrowings and loans with related parties
Related party Amount Commencement date Maturity date Description
2023
Borrowings
China Merchants Bank Co. Ltd. 1150941725.01 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Group Finance Company Limited 576421628.29 Actual borrowing date Agreed repayment date Long-term borrowings
Ocean Driller III Limited 332846013.33 Actual borrowing date Agreed repayment date Other current liabilities
China Merchants Group Finance Company Limited 207179377.43 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co. Ltd. 68062333.33 Actual borrowing date Agreed repayment date Long-term borrowings
Total 2335451077.39 — — — — — —
2022
Borrowings
China Merchants Group Finance Company Limited 604990472.82 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co. Ltd. 140139852.77 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Group Finance Company Limited 31618224.87 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Bank Co. Ltd. 15015583.33 Actual borrowing date Agreed repayment date Short-term borrowings
Total 791764133.79 — — — — — —
- 169 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(5) Asset transfer from related parties
Pricing method and
Related party Content of transaction decision procedures of 2023 2022
related transactions
Ningbo Zhoushan Equity investment Valuation 1845000000.00 -
Liaoning Port Equity investment Valuation 83027500.00 -
Dalian Port Container Equity investment Valuation 57083400.00 -
Jifa Logistics Equity investment Valuation 33815300.00 -
Yingkou Port Group Equity investment Valuation 19002800.00 -
Hoi Tung (Shanghai) Company Limited Fixed assets Negotiation - 8831858.42
Hoi Tung (Shanghai) Company Limited Construction in progress Negotiation - 4853097.34
Total — — — — 2037929000.00 13684955.76
(6) Compensation for key management personnel
Item 2023 2022
Compensation for key management personnel 18932731.03 20313774.52
6. Amounts due from/to related parties that have not settled
(1) Amounts due from related parties
Item Related party 31/12/2023 31/12/2022
China Merchants Bank Co. Ltd. 3778553414.06 3387973124.59
Cash and bank balances China Merchants Group Finance Company Limited 2090078155.93 1841698554.32
Total 5868631569.99 5229671678.91
Held-for-trading
China Merchants Bank Co. Ltd. - 900061111.11
financial assets
Antong Holdings and its subordinate companies 8919131.23 8395245.04
China Marine Shipping Agency Guangdong Co. Ltd. 2765338.38 17505768.03
Sinotrans Container Lines Co. Ltd. 2763240.00 1287851.75
Great Horn Development Company FZCo 2162941.76 2157859.50
China Ocean Shipping Agency Shenzhen Co. Ltd. 2035495.50 758113.05
China Merchants International Shipping Agency (Shenzhen)
1750277.361530505.68
Co. Ltd.Dalian Container Terminal Co. Ltd. 1725150.00 1957840.00
COSCO Logistics (Zhanjiang) Co. Ltd. 1505114.97 4045734.88
Nanshan Group and its subsidiaries 1214194.85 1404627.23
Qingdao Qianwan West Port United Wharf Co. Ltd. 1207750.72 3749064.99
Qingdao Qianwan United Container Terminal Co. Ltd. 1188600.01 1729380.01
Yiu Lian Dockyards (Shekou) Limited 1077910.40 3554521.60
Accounts receivable Sinoway Shipping Ltd. 755606.02 4564389.71
Sinotrans (HK) Shipping Limited 682942.44 375748.78
Liaoning Port - 3680900.00
Khor Ambado FZCo - 3108610.49
Dalian Jifa Port Logistics Co. Ltd. - 2220941.63
Dalian Jifa South Coast International Logistics Co. Ltd. - 1839478.79
Liaoning Port Group Co. Ltd. - 1821581.00
Port de Djibouti S.A. - 1770749.55
South China Sinotrans Supply Chain Management Co. Ltd. - 659854.40
China Marine Shipping Agency Ningbo Co. Ltd. - 164981.21
Yingkou Port Group Co. Ltd. and its subsidiaries
-160491.00
("Yingkou Port Group")
Other related parties 5733746.69 13549055.64
To tal 35487440.33 102283282.02
- 170 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(1) Amounts due from related parties - continued
Item Related party 31/12/2023 31/12/2022
Nanshan Group 203577000.00 240591000.00
Merchants Port City 38809044.77 41847044.77
Dalian Port Logistics Network Co. Ltd. 30605256.76 -
Yingkou Gangxin Technology Co. Ltd. 23881213.75 -
Tin-Can Island Container Terminal Ltd 21960680.22 65121449.40
Dividends receivable
COSCO Logistics (Zhanjiang) Co. Ltd. 13449001.16 18449001.16
China Ocean Shipping Agency Shenzhen Co. Ltd. 11232000.00 -
Qingdao Qianwan United Container Terminal Co. Ltd. - 50000000.00
Other related parties - 232047.23
Total 343514196.66 416240542.56
Chu Kong River Trade Terminal Co. Ltd. 36575039.20 36053588.00
Shenzhen Nanyou (Holdings) Ltd. 30639652.92 6725260.86
Port de Djibouti S.A. 24966517.50 24808664.70
Shenzhen Qianhai Shekou Free Trade Investment Development
6310000.006310000.00
Co. Ltd.China Merchants Port Investment Development Company
2830188.69-
Limited
EuroAsia Dockyard Enterprise and Development Limited 1531896.04 1510055.76
Other receivables
Tin-Can Island Container Terminal Ltd 1320562.03 -
Nanshan Group and its subsidiaries 1189566.10 1009839.70
China Merchants Commercial Property Investment (Shenzhen)
1166408.401132846.40
Co. Ltd.Zhoushan Blue Ocean Investment Co. Ltd. - 4996989.39
China Merchants Shenzhen Ro-Ro Shipping Co. Ltd. - 2899163.95
Other related parties 2142975.51 3550453.73
Total 108672806.39 88996862.49
Nanshan Group and its subsidiaries - 9000.00
Prepayments Other related parties 250084.22 6351.75
Total 250084.22 15351.75
Terminal Link SAS 7468849.83 46409214.10
China Merchants Finance Lease (Shanghai) Co. Ltd. 6200000.00 -
Non-current assets due
China Merchants Finance Lease (Tianjin) Co. Ltd. 3800000.00 3800000.00
within one year
Port of Newcastle and its subsidiaries - 852919208.25
Total 17468849.83 903128422.35
Port of Newcastle and its subsidiaries 921402438.00 -
Terminal Link SAS 204299511.52 2931108250.96
Tianjin Haitian Bonded Logistics Co. Ltd. 34300000.00 34300000.00
Long-term receivables Zhoushan Blue Ocean Investment Co. Ltd. 4996989.39 -
China Merchants Finance Lease (Tianjin) Co. Ltd. 695876.01 659515.88
China Merchants Finance Lease (Shanghai) Co. Ltd. - 6200000.00
Total 1165694814.92 2972267766.84
- 171 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties
Item Related party 31/12/2023 31/12/2022
China Merchants Bank Co. Ltd. 1150880891.67 15015583.33
Short-term borrowings China Merchants Group Finance Company Limited 200176534.70 413453629.50
Total 1351057426.37 428469212.83
Other current liabilities China Merchants Group Finance Company Limited - 10056575.34
Khor Ambado FZCo 22639585.37 -
Antong Holdings and its subordinate companies 20360897.30 16948161.45
Dalian Port Logistics Technology Co. Ltd. 17607121.00 -
Ningbo Zhoushan and its subsidiaries 14691952.29 16725206.29
Dalian Port Logistics Network Co. Ltd. 8355644.80 -
Nanshan Group and its subsidiaries 5968662.37 4259215.79
Shenzhen Bay Electricity Industry Co. Ltd. 5394353.74 4920501.06
Qingdao Qianwan West Port United Wharf Co. Ltd. 4066438.84 8007474.16
China Merchants Port and Shipping Digital Technology
2905000.00-
(Liaoning) Co. Ltd.Accounts payable
Dalian Ganglong Technology Co. Ltd. 2739450.00 -
EuroAsia Dockyard Enterprise and Development Limited 2413589.56 2363408.70
Shenzhen Merchants to Home Technology Co. Ltd. 1781775.33 -
China Merchants Port Investment Development Company
1649069.281203536.99
Limited
Yiu Lian Dockyards Limited 1135115.31 792077.94
Sinoway Shipping Ltd. - 4886700.00
China Marine Shipping Agency Shenzhen Co. Ltd. 259966.50 248149.17
Other related parties 2761309.78 4212603.81
Total 100037979.18 64567035.36
China Merchants Port Investment Development Company
5358074.44-
Limited
Receipts in advance Qingdao Wutong Century Supply Chain Co. Ltd. 196301.30 196301.30
Other related parties - 160600.00
Total 5554375.74 356901.30
COSCO Logistics (Zhanjiang) Co. Ltd. 4552313.24 1275397.28
Qingdao Sinotrans Supply Chain Management Co. Ltd. 1464429.12 368484.60
China Merchants Port Investment Development Company
660943.40-
Limited
China Ocean Shipping Agency Shenzhen Co. Ltd. 633024.00 -
Shenzhen Baohong Technology Co. Ltd. 459049.11 -
Qingdao Sinotrans Logistics Co. Ltd. 440727.56 -
Contract liabilities
Dalian Container Terminal Co. Ltd. - 9679785.44
Dandong Port Group Co. Ltd. - 3842709.07
Qingdao Qianwan United Container Terminal Co. Ltd. - 1556753.55
Yingkou Xingang Kuangshi Terminals Co. Ltd. - 1514844.30
Antong Holdings and its subordinate companies - 1468616.91
Other related parties 1021090.85 2508480.44
Total 9231577.28 22215071.59
China Merchants Zhangzhou Development Zone Co. Ltd. 77734806.46 20000000.00
Dalian Port Container 16160696.61 14000000.00
Jifa Logistics 9575104.42 3000000.00
Yingkou Port Group 5372456.78 -
Dividends payable Yiu Lian Dockyards Limited 2334150.00 -
Zhanjiang Infrastructure Construction Investment Group
-41400234.06
Co. Ltd.Sri Lanka Ports Authority - 10446900.00
Total 111177214.27 88847134.06
Lac Assal Investment Holding Company Limited 64310900.95 47359371.46
Terminal Link SAS 10423425.44 -
China Merchants Real Estate (Shenzhen) Co. Ltd. 10079369.00 10079369.00
Other payables China Merchants Commercial Property Investment (Shenzhen)
5000000.033750000.03
Co. Ltd.Antong Holdings and its subordinate companies 4743266.37 12730734.37
Sin otrans Shenzhen Qianhai Supply Chain Management Ltd. 1690130.78 1628515.12
- 172 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties - continued
Item Related party 31/12/2023 31/12/2022
China Merchant Food (China) Co. Ltd. 1069017.00 1069017.00
China Traffic Import and Export Co. Ltd. 1055975.76 -
Hoi Tung (Shanghai) Company Limited 966785.34 -
China Merchants International Cold Chain (Shenzhen)
757976.00-
Company Limited
Shenzhen Baohong Technology Co. Ltd. 749269.39 749269.39
Other payables China Merchants Shekou Industrial Zone Holdings Co. Ltd. - 6420820.68
China Merchants Port Investment Development Company
-4130081.82
Limited
China Merchants Real Estate Co. Ltd. - 3263853.86
Zhanjiang Xiagang United Development Co. Ltd. - 1439753.57
Other related parties 6946931.01 6732058.14
Total 107793047.07 99352844.44
China Merchants Group Finance Company Limited 288071994.22 110838087.45
China Merchants Bank Co. Ltd. 199326195.84 11362639.43
China Merchants Finance Lease (Shanghai) Co. Ltd. 76461173.65 103236707.51
Nanshan Group and its subsidiaries 63331699.85 65165836.97
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 35719107.95 37012422.69
China Merchants Finance Lease (Tianjin) Co. Ltd. 7548329.72 32339542.44
China Merchants Commercial Property Investment (Shenzhen)
Non-current liabilities 6396788.04 -
Co. Ltd.due within one year
China Merchants International Cold Chain (Shenzhen)
375528.561050270.17
Company Limited
China Merchants Tongshang Finance Lease Co. Ltd. - 45115824.42
EuroAsia Dockyard Enterprise and Development Limited - 14255883.08
Guangdong Shunkong City Investment Real Estate Co. Ltd. - 3162000.00
Other related parties - 1962815.09
Total 677230817.83 425502029.25
China Merchants Group Finance Company Limited 721624592.13 445490692.58
Long-term borrowings China Merchants Bank Co. Ltd. 158000000.00 325000000.00
Total 879624592.13 770490692.58
China Merchants Shekou Industrial Zone Holdings Co. Ltd. 62185360.58 5993041.70
China Merchants Finance Lease (Shanghai) Co. Ltd. - 75833546.45
Nanshan Group and its subsidiaries - 65431073.09
China Merchants Finance Lease (Tianjin) Co. Ltd. - 15833403.29
Lease liabilities
China Merchants International Cold Chain (Shenzhen)
-253362.41
Company Limited
Other related parties 1070904.61 803148.25
Total 63256265.19 164147575.19
Long-term payables China Merchants Finance Lease (Tianjin) Co. Ltd. 33905690.32 41052268.30
(XVI) SHARE-BASED PAYMENTS
1. Equity instruments
Granted in the current Exercised in the current Unlocked in the current
Type of targets Lapsed in the current year
year year year
granted
Qty. Amount Qty. Amount Qty. Amount Qty. Amount
Management - - - - - - 354720 1129997.09
- 173 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
1. Equity instruments - continued
Outstanding stock option or other equity instruments at the end of current year
Outstanding stock option at the end of current year
Type of targets granted
Range of exercise prices Remaining term of contract
Management RMB 14.28 to RMB 16.53 37 months
2. Equity-settled share-based payments
The method used to determine the fair value of equity instruments The cost of granted stock options was estimated
at the grant date using the Black Scholes Model.At each balance sheet date in the vesting period
the best estimate was made and the estimated
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 Criteria of exercising in vesting period of batch 1
of the current year and the estimates of prior year and batch 2 are not satisfied
The aggregate amount of equity-settled share-based payments that is
6644590.36
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.- 174 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
2. Equity-settled share-based payments - continued
According to Article 32 of Stock Option Incentive Plan since the grant date of the stock option if
the Company distributes dividends prior to the exercise of the option the exercise price shall be
adjusted accordingly. Therefore the Company uniformly adjusted the exercise price from
RMB17.80 per share to 17.34 per share in respect of the first batch of stock option granted under
the stock option incentive plan (phase I) on 30 January 2021; the Company uniformly adjusted the
exercise price from RMB 17.34 per share to 16.96 per share in respect of the first batch of stock
option granted under the stock option incentive plan (phase I) and the exercise price of the reserved
portion of stock option from RMB 15.09 per share to 14.71 per share on 29 January 2022; the
Company uniformly adjusted the exercise price from RMB 16.96 per share to 16.53 per share in
respect of the first batch of stock option granted under the stock option incentive plan (phase I) and
the exercise price of the reserved portion of stock option from RMB 14.71 per share to 14.28 per
share on 20 January 2023.As at the date on which the financial statements are issued as 12 of the incentive targets for the first
batch of stock option granted under the stock option incentive plan (phase I) have retired or no
longer serve the Company the board of directors of the Company decided to cancel in total of
339600 shares of stock option granted but not yet exercised by such persons; as 5 of the incentive
targets for the third vesting period of the stock option (1st batch) under the stock option incentive
plan (phase I) of the Company have not satisfied the criteria of exercise in their performance
assessment the Company has cancelled the 20% of the stock option (totalling 15120 shares) for
the third vesting period of the stock option (1st batch) under the stock option incentive plan (phase
I) held by the 5 incentive targets.As at the date on which the financial statements are issued 195 incentive targets who can exercise
the rights for the third vesting period of the stock option (1st batch) under the stock option incentive
plan (phase I) included: (1) 190 incentive targets who met the designated grades in the performance
assessment holding 100% of the stock option (totalling 3471600 shares) for the third vesting
period of the stock option (1st batch) under the stock option incentive plan (phase I) of the Company
and satisfying the criteria of exercise; and (2) 5 incentive targets who met the designated grades in
the performance assessment holding 80% of the stock option (totalling 60480 shares) for the third
vesting period of the stock option (1st batch) under the stock option incentive plan (phase I) of the
Company and satisfying the criteria of exercise. The second vesting period of the stock option
(reserved portion) under the stock option incentive plan (phase I) targets to total 3 persons who can
exercise the rights. The 3 incentive targets have met the designated grades in the performance
assessment and 100% of stock option for the second vesting period of the stock option (reserved
portion) under the stock option incentive plan (phase I) of the Company held by them have satisfied
the criteria of exercise granting 265000 shares of exercisable stock option for the second vesting
period of the stock option (reserved portion) under the stock option incentive plan (phase I).
3. Share-based payment expenses in the current year
Type of targets granted Equity-settled share-based payment expenses
Management 4016693.76
- 175 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XVII) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
Item 31/12/2023 31/12/2022
Commitments that have been entered into but have not
been recognized in the financial statements
- Commitment to make contributions to the investees 467604906.76 38956185.01
- Commitment to acquire and construct long-term assets 2407538867.35 1802316899.52
- Commitment to invest port construction - 5571690.76
- Others - 383560.31
Total 2875143774.11 1847228335.60
2. Contingencies
Item 31/12/2023 31/12/2022
Contingent liabilities brought by external litigations (Note 1) 946218359.48 279438527.06
Guarantee for borrowings of related parties (Note 2) 347437758.18 186672528.21
Total 1293656117.66 466111055.27
Note 1: This mainly represents the significant contingent liabilities arising from the litigations
between TCP and its subsidiaries and local tax authority employee or former employee
of TCP and its subsidiaries in Brazil at as the year end. According to the latest estimates
of the Group's management the possible compensation is RMB 946218359.48 but it is
not likely to cause outflow of economic benefits from the Group. Therefore the contingent
liabilities arising from the above pending litigations are not recognized as provisions. The
counter-bonification where the Group as the beneficiary will be executed by the former
TCP shareholder that disposed the shares. According to the counter-bonification
agreement the former TCP shareholder needs to make counter-bonification to the Group
in respect of the above contingent liabilities with the compensation amount not exceeding
pre-determined amount and specified period.Zhanjiang Port a subsidiary of the Company entered into an EPC contract for the General
Cargo Terminal Project at Donghai Island Port Area of Zhanjiang Port with CCCC Water
Transport Planning and Design Institute Co. Ltd. on 28 June 2016 with the agreed
construction period from 28 June 2016 to 8 June 2018. After the contract was signed the
overall progress of the project construction was delayed due to the optimization and
adjustment of the layout plan and process design for the terminal. In December 2022
CCCC Water Transport Planning and Design Institute Co. Ltd. filed a litigation to the
court for losses caused by delay in construction adjustment to project scale changes in
design and other reasons and may require the Zhanjiang Port for compensation.The claims of CCCC Water Transport Planning and Design Institute Co. Ltd. were
inconsistent with those agreed in the contract the relevant result of the litigation could not
be reasonably estimated and the management of the Company believed that the possibility
of loss was quite low therefore no provisions were made for the above pending litigation.- 176 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XVII) COMMITMENTS AND CONTINGENCIES - continued
2. Contingencies - continued
Note 2: As at 31 December 2023 the guarantees provided by the Group for related parties are
detailed in Note XV 5(3).As at 31 December 2023 the directors of the Company evaluated the default risks of
related companies on the above-mentioned loan financing and other liabilities and
believed that the risks were not significant and the possibility of guaranteed payments was
very small.Except for the above-mentioned contingencies as at 31 December 2023 the Group had no other
major guarantees and other contingencies that need to be explained.(XVIII)EVENTS AFTER THE BALANCE SHEET
According to the profit distribution plan for 2023 and as approved by the 7th meeting of the 10th
board of directors on 29 March 2024 the Company based on the total shares of 2499074661 as
at 31 December 2023 distributes cash dividends at RMB 5.80(inclusive of tax) for every 10 shares
totalling RMB 1449463303.38. The above profit distribution plan has not yet been approved by
shareholders' meeting.(XIX) OTHER SIGNIFICANT EVENTS
1. Segment reporting
(1) Basis for determining reporting segments and accounting policies
The key management team of the Company is regarded as the CODM who reviews the Group's
internal reports in order to assess performance allocate resources and determine the operating
segments. The CODM considers the operation of the Group in terms of business and locations.Individual operating segments for which discrete financial information is available are identified
by the CODM and are operated by their respective management teams. These individual operating
segments are aggregated in arriving at the reporting segments of the Group.From business and location perspectives the management assesses the performance of the Group's
business operations including ports operation bonded logistics operation and other operations.Ports operation
Ports operation includes container terminal operation bulk and general cargo terminal operation
operated by the Group and its associates and joint ventures.- 177 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(1) Basis for determining reporting segments and accounting policies - continued
Ports operation - continued
The Group's ports operation is presented as follows:
(a) Mainland China Hong Kong and Taiwan
Pearl River Delta
Yangtze River Delta
Bohai Rim
Others
(b) Other locations outside of Mainland China Hong Kong and Taiwan
Bonded logistics operation
Bonded logistics operation includes logistics park operation ports transportation and airport cargo
handling operated by the Group and its associates and joint ventures.Other operations
Other operations mainly include property development and investment and logistics business
operated by the Group's associates property investment operated by the Group and corporate
function.Each of the segments under ports operation includes the operations of a number of ports in various
locations within one geographic location. For the purpose of segment reporting these individual
operating segments have been aggregated into reportable segments on geographic basis in order to
present a more systematic and structured segment information. To give details of each of the
operating segments in the opinion of the directors of the Company would result in particulars of
excessive length.Bonded logistics operation and other operations include a number of different operations each of
which is considered as a separate but insignificant operating segment by the CODM. For segment
reporting these individual operating segments have been aggregated according to the nature of their
operations to give rise to more meaningful presentation.There are no material sales or other transactions between the segments.The revenue from a major customer of ports operation amounts to RMB 2007111746.88
representing 12.74% (2022: 10.30%) of the Group's operating income for 2023.- 178 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments
Segment financial information for 2023 is as follows:
Ports operation
Mainland China Hong Kong and Taiwan Bonded logistics Unappropriated
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 cost 3640281453.34 361926675.75 63825074.56 2648882080.97 2081165945.51 8796081230.13 289816313.93 232289163.69 - 9318186707.75
Segment operating profit (Losses
2435410347.67195861636.1812935727.40925520572.232670464073.056240192356.53242854130.11-50757414.17-6432289072.47
are marked with "-")
Taxes and surcharges 36973822.23 2937337.05 1126391.13 45970219.08 174670480.72 261678250.21 26757765.42 24332840.83 229169.73 312998026.19
Administrative expense 437814344.01 26162000.70 9644685.03 529927581.34 289653304.36 1293201915.44 49569679.55 1111358.13 432758202.26 1776641155.38
R&D expenses 176892569.73 23890344.38 - 22956157.96 - 223739072.07 - - - 223739072.07
Financial expenses 57700690.44 20953099.98 1883921.89 85621075.66 55969633.29 222128421.26 3129354.57 20854412.74 1593001139.57 1839113328.14
Other income 148491604.96 10227298.67 203918.26 50512014.48 - 209434836.37 14668272.54 286151.86 - 224389260.77
Investment income 130131600.03 4956167513.13 416731511.24 50706320.64 454900989.67 6008637934.71 59521957.15 245264989.05 35252059.89 6348676940.80
Gains from changes (Losses are
marked with "-") 102777832.55 -58125015.24 80543109.95 -6584009.33 - 118611917.93 -57875873.69 9644865.10 2971891.18 73352800.52
in fair value
Gains from impairment of
7327814.78-36129.03-3468262.80-7171766.683588181.8733695859.31--37284041.18
credit (Losses are marked with "-")
Gains from impairment of
assets (Losses are marked with "- -1091994.67 -189030229.12 - - -1175087.49 -191297311.28 - - - -191297311.28
")
Gains from disposal of
assets (Losses are marked with "- 6196256.45 - -7362.22 34965994.86 507804.31 41662693.40 -602074.20 -4253879.72 -47206.87 36759532.61
")
Operating profit (Losses are marked
2119862035.364841122292.48497751906.58374114121.642597232594.4910430082950.55212805471.68153886100.42-1987811767.368808962755.29
with "-")
- 179 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment financial information for 2023 is as follows: - continued
Ports operation
Mainland China Hong Kong and Taiwan Bonded logistics Unappropriated
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 (Losses are marked
2143434790.434841059219.13498202981.14362036340.862579022969.0310423756300.59212633119.62154284002.35-1991481483.878799191938.69
with "-")
Income tax expenses 496377795.59 258020898.94 44218770.18 58080621.40 383193406.85 1239891492.96 35421490.70 27848029.46 418839.81 1303579852.93
Net profit (Losses are marked with
1647056994.844583038320.19453984210.96303955719.462195829562.189183864807.63177211628.92126435972.89-1991900323.687495612085.76
"-")
Segment assets 23724145365.09 57709896939.07 9703687046.02 27727348979.52 42500927378.99 161366005708.69 4712961257.31 19403999499.27 13074330201.99 198557296667.26
Total assets in the financial statements 198557296667.26
Segment liabilities 7029170965.33 1275695327.99 158452621.02 6498242286.20 7189272994.18 22150834194.72 540614061.66 617809748.89 49678104233.18 72987362238.45
Total liabilities in the financial statements 72987362238.45
Supplementary information:
Depreciation and amortization 1126510216.09 113947562.11 882064.68 875850774.90 866605229.04 2983795846.82 102034394.34 194738423.53 23167239.73 3303735904.42
Interest income 42679230.74 2243451.14 714733.07 22543238.68 256085052.61 324265706.24 7210199.57 1678151.13 164439864.42 497593921.36
Interest expense 90781497.89 10849293.26 - 107297773.92 314310921.43 523239486.50 8495591.27 19075433.27 1687342285.62 2238152796.66
Investment income from
long-term equity investments 44963451.52 4750830911.12 375529615.82 47995671.63 454900989.67 5674220639.76 59521957.15 245264989.05 - 5979007585.96
under equity method
Long-term equity investments
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
- 180 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment financial information for 2022 is as follows:
Ports operation
Mainland China Hong Kong and Taiwan Bonded logistics Unappropriated
Item Others Total (Restated)
Yangtze River Other locations Sub-total operation amount (Restated)
Pearl River Delta Bohai Rim Others
Delta
Operating income 6774045422.66 1139944516.62 74222857.10 3552074625.60 4086514642.86 15626802064.84 445592537.09 158094525.62 - 16230489127.55
Operating cost 3849914782.32 696788162.45 62264300.65 2691172225.32 1853376921.16 9153516391.90 280270213.56 216675107.48 - 9650461712.94
Segment operating profit (Losses
2924130640.34443156354.1711958556.45860902400.282233137721.706473285672.94165322323.53-58580581.86-6580027414.61
are marked with "-")
Taxes and surcharges 32239840.06 5674557.52 1102665.95 49561307.23 152923436.63 241501807.39 22188514.91 18305796.73 253354.43 282249473.46
Administrative expense 435544849.33 37586936.77 9903393.91 536045336.65 266594657.88 1285675174.54 46846479.95 1356901.51 431216180.51 1765094736.51
R&D expenses 227962954.81 40790798.38 - 18952425.51 - 287706178.70 - - - 287706178.70
Financial expenses 43042474.05 12623313.35 16617530.89 105755359.90 202779070.53 380817748.72 11831333.17 42509881.22 1823554709.31 2258713672.42
Other income 128422018.54 6905602.77 99278.36 73123957.51 - 208550857.18 20996809.22 2259661.58 9840742.44 241648070.42
Investment income 222543823.37 5152876665.17 334188303.02 53824558.05 1070198985.49 6833632335.10 94330245.64 425089497.20 24603428.39 7377655506.33
Gains from changes
in fair value (Losses are marked 34481879.58 - -28084576.60 1009908.14 - 7407211.12 -136440861.23 - - -129033650.11
with "-")
Gains from impairment
of credit (Losses are marked -5932959.08 - 269053.38 19276798.42 -221119087.29 -207506194.57 -15967381.98 - - -223473576.55
with "-")
Gains from impairment
of assets (Losses are marked -573122.05 - - -21585898.15 - -22159020.20 - - - -22159020.20
with "-")
Gains from disposal of
assets (Losses are marked with -186834.36 - - -2189571.61 61495.66 -2314910.31 104763.84 57352755.05 -12513.06 55130095.52
"-")
Operating profit (Losses are
2564095328.095506263016.09290807023.86274047723.352459981950.5211095195041.9147479570.99363948752.51-2220592586.489286030778.93
marked with "-")
- 181 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
Segment financial information for 2022 is as follows: - continued
Ports operation
Mainland China Hong Kong and Taiwan Bonded logistics Unappropriated
Item Others Total (Restated)
Yangtze River Other locations Sub-total operation amount (Restated)
Pearl River Delta Bohai Rim Others
Delta
Non-operating income 18342596.09 2900356.17 22378312.31 10237915.83 221044827.94 274904008.34 50933.02 992336.45 3327174.96 279274452.77
Non-operating expenses 23387870.39 1035713.16 - 148923783.29 29888387.79 203235754.63 10000.00 - 17196500.05 220442254.68
Total profit (Losses are marked
2559050053.795508127659.10313185336.17135361855.892651138390.6711166863295.6247520504.01364941088.96-2234461911.579344862977.02
with "-")
Income tax expenses 517928967.15 218235972.45 19104784.49 39483784.58 224820817.17 1019574325.84 17884281.49 73694575.33 1806494.09 1112959676.75
Net profit (Losses are marked 2426317573.50 10147288969.78 -2236268405.66
2041121086.645289891686.65294080551.6895878071.3129636222.52291246513.638231903300.27
with "-")
Segment assets 24260000005.96 58080072708.01 9491073768.13 27095782491.19 44382357967.93 163309286941.22 4719222985.06 19523260761.95 10035331759.08 197587102447.31
Total assets in the financial statements 197587102447.31
Segment liabilities 10545067732.35 1993414192.41 142428100.05 7095951456.64 7184350827.79 26961212309.24 472931692.54 849543150.07 40981807066.15 69265494218.00
Total liabilities in the financial statements 69265494218.00
Supplementary information:
Depreciation and amortization 1119781238.27 214719968.82 882688.51 851694182.33 801221249.28 2988299327.21 98440779.50 184744488.91 26022221.27 3297506816.89
Interest income 49428469.37 2890732.29 543508.80 27921113.89 255001470.66 335785295.01 1231657.13 1329524.29 131487621.62 469834098.05
Interest expense 86468640.13 10921214.61 - 128204357.08 415728796.45 641323008.27 13108859.14 26701866.03 1544029072.35 2225162805.79
Investment income from
long-term equity investments 134882198.77 5114173074.83 293371940.22 53436206.60 1070198985.49 6666062405.91 94330245.64 424789497.20 - 7185182148.75
under equity method
Long-term equity investments
1741189123.5452146528746.228605621312.901094348450.1913193855158.6276781542791.471496017782.5814086733345.00-92364293919.05
under equity method
Non-current assets other than
18338841436.044203682076.5615863803.6121159269860.5225053023827.8368770681004.562058218100.735083564521.74880089692.5576792553319.58
long-term equity investments
- 182 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
1. Segment reporting - continued
(2) Financial information of reporting segments - continued
The Group's total revenue from external transactions in Mainland China and other countries and
regions and total non-current assets other than financial assets and deferred tax assets located in
Mainland China and other countries and regions are presented as follows:
Revenue from external transactions 2023 2022
Mainland China Hong Kong and Taiwan 10958608605.93 12105380701.20
Pearl River Delta 6600817552.32 7195529214.88
Yangtze River Delta 557788311.93 1139944516.62
Bohai Rim 225600088.48 217832344.10
Others 3574402653.20 3552074625.60
Other locations 4791867174.29 4125108426.35
Total 15750475780.22 16230489127.55
Total non-current assets 31/12/2023 31/12/2022
Mainland China Hong Kong and Taiwan 128859143257.19 130723044577.52
Pearl River Delta 40390524565.51 42150053552.57
Yangtze River Delta 56242527381.24 56350210822.78
Bohai Rim 9297697381.31 9147542234.74
Others 22928393929.13 23075237967.43
Other locations 40908377486.15 38433802661.11
Total 169767520743.34 169156847238.63
(3) Degree of reliance on major customers
The total operating income derived from the top five customers of the Group is RMB
4146867314.45 accounting for 26.33% of the Group's operating income.
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1. Other receivables
1.1 Summary of other receivables
Item 31/12/2023 31/12/2022
Dividends receivable 167092526.14 147896763.88
Other receivables 1575369144.18 2601740991.35
Total 1742461670.32 2749637755.23
- 183 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.2 Dividends receivable
(1) Presentation of dividends receivable
Investee 31/12/2023 31/12/2022
Wharf Holdings Hong Kong 147680363.88 147680363.88
CM International Tech 4758668.03 -
Chiwan Shipping (Hong Kong) Limited 3205094.23 -
Shenzhen Petrochemical Industry (Group) Co. Ltd. 216400.00 216400.00
China Ocean Shipping Agency (Shenzhen) Co. Ltd. 11232000.00 -
Total 167092526.14 147896763.88
Less: Provision for credit loss - -
Carrying amount 167092526.14 147896763.88
(2) Significant dividends receivable aged more than 1 year
Impaired or not and
Reason for
Item 31/12/2023 31/12/2022 the determination
outstanding
basis
In processing and
Wharf Holdings Hong
147680363.88 147680363.88 expected to be No
Kong
recovered in 2024
Total 147680363.88 147680363.88
1.3 Other receivables
(1) Aging analysis of other receivables
31/12/2023
Aging Provision for Proportion of
Other receivables
credit loss provision (%)
Within 1 year 910122251.73 - -
1 to 2 years 662450976.98 - -
2 to 3 years 2467600.00 - -
More than 3 years 711772.07 383456.60 53.87
Total 1575752600.78 383456.60 — —
(2) Disclosure of other receivables by nature
Item 31/12/2023 31/12/2022
Amounts due from related parties 1553447353.90 2596356894.67
Advances 4965337.56 2467600.00
Others 17339909.32 3299953.28
Total 1575752600.78 2602124447.95
Less: Provision for credit loss 383456.60 383456.60
Carrying amount 1575369144.18 2601740991.35
- 184 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
1.3 Other receivables - continued
(3) Provision for credit loss of other receivables
31/12/202331/12/2022
Expected Lifetime Lifetime Lifetime Lifetime
Credit rating credit loss ECL (not ECL ECL ECL
12-month ECL Total 12-month ECL Total
rate (%) credit- (credit- (not credit- (credit-
impaired) impaired) impaired) impaired)
A 0.00-0.10 1575369144.18 - - 1575369144.18 2601740991.35 - - 2601740991.35
B 0.10-0.30 - - - - - - - -
C 0.30-50.00 - - - - - - - -
D 50.00-100.00 - - 383456.60 383456.60 - - 383456.60 383456.60
Gross carrying
1575369144.18-383456.601575752600.782601740991.35-383456.602602124447.95
amount
Provision for
--383456.60383456.60--383456.60383456.60
credit loss
Carrying
1575369144.18--1575369144.182601740991.35--2601740991.35
amount
(4) Provision recovery and reversal of credit loss of other receivables
Stage 1 Stage 2 Stage 3
Item Lifetime ECL Lifetime ECL Total
12-month ECL
(not credit-impaired) (credit-impaired)
At 1 January 2023 - - 383456.60 383456.60
Balance of other receivables
at 1 January 2023
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year - - - -
Reversal for the year - - - -
Transfer out due to derecognition of
financial assets (including direct - - - -
write-down)
Other changes - - - -
At 31 December 2023 - - 383456.60 383456.60
(5) Details of bad debt provision
Changes for the year
Effect of
Charge-off
Category 31/12/2022 Recovery or changes in Other 31/12/2023
Provision or write-
reversal the scope of changes
off
consolidation
Bad debt provision
assessed on an 383456.60 - - - - - 383456.60
individual basis
Bad debt provision
assessed on a portfolio - - - - - - -
basis
Total 383456.60 - - - - - 383456.60
(6) The Company has no recovery or reversal of significant provision for credit loss in the
current year.- 185 -CHINA MERCHANTS PORT GROUP CO. LTD.NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
1. Other receivables - continued
(7) The Group has no other receivables written off during the year.
(8) The top five balances of other receivables at the end of the year classified by debtor
Proportion Closing
Relationship to total balance of
Name of entity with the Nature Closing balance Aging other provision
Company receivables for credit
(%) loss
Loan to Within 1 year
Shenzhen Haixing Subsidiary 1541029169.74 97.80 -
related parties 1-2 years
Lease
Wharf Holdings Hong Kong Subsidiary 15189918.60 Within 1 year 0.96 -
payment
Loan to Within 1 year
Shunkong Port Subsidiary 12418184.16 0.79 -
related parties 1-2 years
CM International Tech Subsidiary Advances 2467600.00 2-3 years 0.16 -
Shenzhen Shekou Local Taxation More than 3
Third party Others 711772.07 0.05 -
Bureau years
Total 1571816644.57 99.76 -
- 186 -CHINA MERCHANTS PORT GROUP CO. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
2. Long-term equity investments
(1) Breakdown of long-term equity investments
Changes for the year
Reconciliation Closing balance of
Investment income Cash dividends
Investee 31/12/2022 of other Other equity Provision for 31/12/2023 provision for
Increase Decrease under equity or profit Others
comprehensive movements impairment impairment
method declared
income
I. Subsidiaries
Shenzhen Chiwan International Freight Agency
5500000.00--------5500000.00-
Co. Ltd.Shenzhen Chiwan Harbor Container Co. Ltd. 250920000.00 - - - - - - - - 250920000.00 -
Shenzhen Chiwan Port Development Co. Ltd. 206283811.09 - - - - - - - - 206283811.09 -
Wharf Holdings Hong Kong 1070000.00 - - - - - - - - 1070000.00 -
Shenzhen Chiwan Tugboat Co. Ltd. 24000000.00 - - - - - - - - 24000000.00 -
Chiwan Container Terminal Co. Ltd. 421023199.85 - - - - - - - - 421023199.85 -
Shenchiwan Port Affairs 186525000.00 - - - - - - - - 186525000.00 -
Dongguan Shenchiwan Wharf Co. Ltd. 175000000.00 - - - - - - - - 175000000.00 -
Chiwan Shipping (Hong Kong) Limited 1051789.43 - - - - - - - - 1051789.43 -
CM Port (Note 1) 168841768.35 12474393.06 - - - - - - - 181316161.41 -
Zhoushan RoRo 149709800.00 - - - - - - 43605014.00 - 106104786.00 43605014.00
Zhanjiang Port 3381825528.52 - - - - - - - - 3381825528.52 -
CM International Tech (Note 2) 20561075.02 109901500.00 - - - - - - - 130462575.02 -
Sanya Merchants Port Development Co. Ltd. 2040000.00 - - - - - - - - 2040000.00 -
Ports Development (Hong Kong) Limited 29203045326.23 - - - - - - - - 29203045326.23 -
Shunkong Port (Note 3) 50000000.00 144673400.00 - - - - - - - 194673400.00 -
Guangdong Yide Port Co. Ltd. 131866700.00 - - - - - - - - 131866700.00 -
Sub-total 34379263998.49 267049293.06 - - - - - 43605014.00 - 34602708277.55 43605014.00
II. Associates
Ningbo Zhoushan 16228879526.87 - - 966972107.64 18734157.32 -45798686.57 -355122265.53 - - 16813664839.73 -
China Merchants Northeast Asia Development &
1017010205.71--1668941.79--144795.94---1018534351.56-
Investment Co. Ltd.China Merchants Bonded Logistics Co. Ltd. 412362918.79 - - 54128341.59 - - -84285525.91 - - 382205734.47 -
Antong Holdings (Note 4) - 892445435.37 - 29869705.60 - 17223.61 - - - 922332364.58 -
Sub-total 17658252651.37 892445435.37 - 1052639096.62 18734157.32 -45926258.90 -439407791.44 - - 19136737290.34 -
III. Joint ventures - -
Yantai Port Group Laizhou Port Co. Ltd. 794153389.74 - - 38645587.47 -280000.00 -1858614.11 -28133178.67 - - 802527184.43 -
Fujian Zhaohang Logistics Management Partnership
592134266.75--21878659.99-714032.74---614726959.48-
(Limited Partnership)
Shenzhen Gangteng Internet Technology Co. Ltd.
9809165.143750000.00--1640538.15-----11918626.99-
(Note 5)
Sub-total 1396096821.63 3750000.00 58883709.31 -280000.00 -1144581.37 -28133178.67 - - 1429172770.90 -
Total 53433613471.49 1163244728.43 - 1111522805.93 18454157.32 -47070840.27 -467540970.11 43605014.00 - 55168618338.79 43605014.00
- 187 -CHINA MERCHANTS PORT GROUP CO. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
2. Long-term equity investments - continued
(1) Details of long-term equity investments - continued
Note 1: Details are set out in Note (XI) 1. (1).Note 2: Details are set out in Note (XI) 2. (1).Note 3: In July and December 2023 the Company and Guangdong Shunkong City Investment
Real Estate Co. Ltd. entered into a capital increase agreement for Shunkong Port in two
parts whereby the two parties agreed to increase the capital by RMB 218751400.00 and
RMB 153823600.00 together in accordance with their respective shareholding ratios of
51% and 49% of which the Company contributed RMB 111563200.00 and RMB
78450000.00. According to the capital increase agreement the Company paid a total of
RMB 144673400.00 for the capital increase at the end of the year. The shareholding ratio
of the two investors remained unchanged after the capital increase.Note 4: Details are set out in Note (VIII) 14.Note 5: The Company fulfilled the investment agreement in the current year and paid the second
contribution amounting to RMB 3750000.00.
(2) Details of impairment testing of long-term equity investments
The Company recognized a provision for impairment of long-term equity investments
amounting to RMB 43605014.00 based on the share of Zhoushan RoRo's recoverable
amount refer to Note (VIII) 16.2 (7) for details.
3. Operating income and operating costs
20232022
Item
Income Cost Income Cost
Principal operation - - - -
Other operations 17326885.29 3686411.84 3669891.36 2276202.60
Total 17326885.29 3686411.84 3669891.36 2276202.60
- 188 -CHINA MERCHANTS PORT GROUP CO. LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
(Unless otherwise specified the monetary unit shall be RMB)
(XX)NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
4. Investment income
(1) Details of investment income
Item 2023 2022
Income from long-term equity investments under cost method 416405658.26 549150517.02
Income from long-term equity investments under equity
1111522805.93384257363.02
method
Income from held-for-trading financial assets 49614971.08 120227079.12
Income from investments in other equity instruments 20056500.00 -
Income from disposal of long-term equity investments - -20508.07
Total 1597599935.27 1053614451.09
(2) Income from long-term equity investments under cost method
Investee 2023 2022 Reason for changes
Chiwan Container Terminal Co. Ltd. 149527479.94 166925696.05 Changes in profit distribution of investee
Shenzhen Chiwan Harbor Container Co. Ltd. 111712423.41 173751858.77 Changes in profit distribution of investee
Zhanjiang Port 36552790.18 91862080.91 Changes in profit distribution of investee
Dongguan Shenchiwan Wharf Co. Ltd. 33386741.74 37543998.58 Changes in profit distribution of investee
Dongguan Shenchiwan Port Affairs Co. Ltd. 26519896.50 18111237.23 Changes in profit distribution of investee
Shenzhen Chiwan Tugboat Co. Ltd. 20137075.44 29238925.84 Changes in profit distribution of investee
CM Port 11184689.72 11069965.98 Changes in profit distribution of investee
Shenzhen Chiwan Port Development Co. Ltd. 9751697.73 20415654.72 Changes in profit distribution of investee
CM International Tech 9517336.07 - Changes in profit distribution of investee
Chiwan Shipping (Hong Kong) Limited 7902673.23 - Changes in profit distribution of investee
Shenzhen Chiwan International Freight Agency
212854.30 231098.94 Changes in profit distribution of investee
Co. Ltd.Total 416405658.26 549150517.02 --
- 189 -CHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
1. BREAKDOWN OF NON-RECURRING PROFIT OR LOSS
Item Amount Remark
Gains or losses on disposal of non-current assets including those charged off for
231205985.85
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
149238503.34
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
194897544.80
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 period up to the -
business combination date
Gains or losses arising from contingencies other than those related
-
to normal operating business
Gains or losses from changes in fair value of financial assets and financial
liabilities held by non-financial enterprises other than effective hedging operation
73352800.52
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
52962785.14
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 12810280.19
Other profit or loss that meets the definition of non-recurring profit or loss -
Tax effects -145340260.29
Effects of minority interests (after tax) -336553661.12
Total 232573978.43
The revised Explanatory Announcement No. 1 on Information Disclosure for Companies Making Public
Offering - Non-recurring Profit or Loss (Revised in 2023) was issued by the China Securities Regulatory
Commission on 22 December 2023 and the effect of the revision on non-recurring profit or loss for the
comparable accounting periods is reflected as a decrease of non-recurring profit or loss by RMB
18600132.64.CHINA MERCHANTS PORT GROUP CO. LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
2. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
The return on net assets and EPS have been prepared by the Company in accordance with Information
Disclosure and Presentation Rules for Companies Making Public Offering No. 9 - Calculation and
Disclosure of Return on Net Assets and Earnings per Share (revised in 2010) issued by China Securities
Regulatory Commission.Weighted average EPS
Item
return on net assets (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 6.3455 1.4292 1.4292
Net profit attributable to ordinary shareholders after
5.93241.33621.3362
deducting non-recurring profit or lossCHINA MERCHANTS PORT GROUP CO. LTD.SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023
3. SUPPLEMENTARY INFORMATION RELATING TO ITEMS IN THE FINANCIAL
STATEMENTS DUE TO RETROSPECTIVE APPLICATION OF ACCOUNTING
POLICIES
Item 31/12/2023 31/12/2022 1/1/2022 Item 31/12/2023 31/12/2022 1/1/2022
Current Assets: Current liabilities:
Cash and bank balances 16079646178.24 13615928739.40 12772349406.77 Short-term borrowings 15714045288.97 7164338366.18 13651452805.36
Held-for-trading financial assets 4568806108.84 2998781599.63 6921831502.55 Notes payable 73461165.82 - 1895987.17
Notes receivable 325150195.09 36395000.00 6081611.95 Accounts payable 691765137.25 811149397.66 843820438.51
Accounts receivable 1103901466.25 1276149689.44 1320577577.81 Receipts in advance 17387537.36 9886531.59 9313166.01
Receivables financing 2001669.46 163766913.10 238429402.71 Contract liabilities 142080101.00 141899551.03 196784525.26
Prepayments 37664552.30 63627425.42 51606794.20 Employee benefits payable 917964606.65 936834718.13 820416415.47
Other receivables 940014994.01 948842094.30 696276595.87 Taxes payable 923053572.50 917933169.09 2162719251.68
Inventories 218898192.87 225122821.48 194920136.12 Other payables 1654622170.02 1755885258.26 2140108341.08
Non-current liabilities due within
Assets held-for-sale - - 337442757.28 6817404289.25 11641223688.95 8268209284.17
one year
Non-current assets due within
17451380.98 902225293.93 102356461.97 Other current liabilities 2143842534.53 3161147525.96 2158497775.85
one year
Other current assets 189673500.87 185903140.53 339684297.41 Total current liabilities 29095626403.35 26540298206.85 30253217990.56
Total current assets 23483208238.91 20416742717.23 22981556544.64 Non-current Liabilities:
Non-current Assets: Long-term borrowings 18227543954.71 12390099177.85 7144839870.89
Long-term receivables 3856466116.99 5661327499.07 6162713861.02 Bonds payable 14287508564.15 19088293099.02 16670872414.14
Long-term equity investments 96666117776.27 92364293919.05 70353451824.52 Including: Preferred shares - - -
Other non-current financial
877576442.83 1745740896.41 809515244.87 Perpetual bonds - - -
assets
Investments in other equity
157461648.16 171945275.02 180251798.43 Provisions 1001172206.92 948350914.04 1055194906.09
instruments
Investment properties 4958374968.79 5123690119.56 5298238414.88 Lease liabilities 3822862202.17 3551315590.31 3422179366.40
Fixed assets 28986538326.35 32033326083.50 31710513230.29 Long-term payables 603009921.91 639095931.43 588681492.63
Long-term employee benefits
Construction in progress 2909817281.46 2413844407.64 2557584953.92 85590059.41 35365156.43 24247302.42
payable
Right-of-use assets 9441668311.22 9342642222.33 8743077542.19 Deferred income 1024776557.73 1031273189.74 1075957884.91
Intangible assets 18073062184.72 19277065115.61 18475412380.93 Deferred tax liabilities 4659638104.37 4855019835.33 4552418519.70
Development expenditure 50990153.18 17412196.16 82391225.85 Other non-current liabilities 179634263.73 186383117.00 163065578.53
Goodwill 6493002246.44 6411426891.09 6024160942.07 Total non-current liabilities 43891735835.10 42725196011.15 34697457335.71
Long-term prepaid expenses 993793505.29 986356904.90 975994541.52 TOTAL LIABILITIES 72987362238.45 69265494218.00 64950675326.27
Deferred tax assets 415063477.03 434498820.95 454644724.39 Owners' equity:
Other non-current assets 1194155989.62 1186789378.79 1231092952.69 Share capital 2499074661.00 2499074661.00 1922365124.00
Total non-current assets 175074088428.35 177170359730.08 153059043637.57 Including: Preferred shares - - -
Perpetual bonds - - -
Capital reserve 37076846803.06 34751640835.25 23592702758.70
Less: Treasury shares - - -
Other comprehensive income -903626594.35 -689553619.86 -890125318.18
Special reserve 34003994.41 26358259.97 9184429.12
Surplus reserve 1095980563.68 1001917449.15 961182562.00
Unappropriated profit 19045313519.75 16701988301.14 14226931466.66
Total equity attributable to equity
58847592947.5554291425886.6539822241022.30
holders of the Company
Minority interests 66722341481.26 74030182342.66 71267683833.64
TOTAL OWNERS' EQUITY 125569934428.81 128321608229.31 111089924855.94
TOTAL LIABILITIES AND
TOTAL ASSETS 198557296667.26 197587102447.31 176040600182.21 198557296667.26 197587102447.31 176040600182.21
OWNERS' EQUITY
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