CHINAMERCHANTSPORTGROUPCO.,LTD.
ANNUALREPORT2020
Dateofdisclosure:31March2021
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Chairman’sStatementDearshareholders,IherebypresenttoyoutheannualreportofChinaMerchantsPortGroupCo.,Ltd.anditssubsidiaries(the“Company”)fortheyearended31December2020.OnbehalfoftheBoard,Iwouldliketoexpressmysinceregratitudetoallofyouforyourlong-termsupporttotheCompany.TheCompanyisacrucialvehicleforCMGtoimplementthe“BeltandRoad”InitiativepromotedbyChinaandthe“Guangdong-HongKong-MacaoGreaterBayArea”strategy.TheCompanyisalsotheheadquartersofCMG’sportsectorandtieronecapitaloperationandmanagementplatformfortheCMG’sportassets,playingakeyroleintheconsolidationandsynergisticdevelopmentofCMG’sportassets.TheCompanyhasbecometheworld’sleadingportinvestor,developerandoperator.Lookingahead,theCompanywilltakeactionsandstrivetobeaworld-classcomprehensiveportserviceprovider.Whileexpandingtheportecosystemwithafocusoncoreportbusinessesandpromotingtheconstructionof“IntelligentPort”undertheguidanceoftechnologyinnovation;itwillproactivelytakepartininternationalportinvestment,developmentandoperation,soastooptimizetheportnetworksystemonacontinuousbasisandachievebalanceddevelopmentonaregionallevel.Byofferingprofessionaltop-notchsolutions,itwillbecomecustomers’firstchoiceofpartnerforcooperation,creatinggreatervaluefortheCompany,enhancingreturnforshareholdersandcontributingtothehealthydevelopmentoftheportindustryandthecontinuousgrowthoftheglobaltrade.ReviewfortheyearIn2020,underthemultipleimpactsoftheCOVID-19pandemic,anti-globalizationandgeopoliticalrisks,theoverallglobaleconomyexperiencedrecessiontosomedegree.Weakconsumption,shrinkingtradeandfluctuationsinexchangerates,alongwithotheruncertainties,imposedchallengestothedailyoperationandmanagementofbusinesses.Despitethecomplexanddifficultexternalenvironment,theCompanyfirmlyadheredtothestrategicprincipleof“leveragingonitslong-termstrategy,tappingthecurrentedges,drivingthroughtechnologyandembracingchanges”.Apartfromcopingwiththepandemicproactively,itpursuedvariouskeyconstructionprojectsinasteadymanner,includingtheconstructionofhomebasedports,overseasexpansionanddigital
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
innovation,andsuccessfullyaccomplisheditsstrategicgoalsandvariousoperationalobjectivesoftheyear.Intermsofportoperation,thecontainerportbusinessdeliveredacontainerthroughputtotaled
121.71milliontwenty-footequivalentunits(TEUs)in2020,up7.8%year-on-year.Lookingintotheregionalperformance,containerthroughputhandledbytheCompany’sportsinMainlandChinatotaled85.76millionTEUs,up1.0%year-on-year.PortsinHongKongandTaiwanhandledacombinedcontainerthroughputof7.16millionTEUs,down0.7%year-on-year,whileoverseasprojectshandledatotalcontainerthroughputof28.78millionTEUs,up38.1%year-on-year.BulkcargovolumehandledbytheCompany’sportsdecreasedby7.1%year-on-yearto450milliontons,amongwhichtheCompany’sportsinMainlandChinahandledatotalbulkcargovolumeof448milliontons,down7.1%year-on-year,andtheoverseasportprojectshandledatotalbulkcargovolumeof5.83milliontons,down7.2%year-on-year.Amongthemajorports,containerthroughputhandledinWestShenzhenPortZoneinChinawas11.84millionTEUs,up3.6%year-on-year.SIPGhandledacontainerthroughputof43.50millionTEUs,representingayear-on-yearincreaseof0.5%.Foroverseasprojects,CICTinSriLankadeliveredayear-on-yeargrowthof
1.9%byhandlingacontainerthroughputof2.93millionTEUs.LCTinTogohandledacontainerthroughputof1.36millionTEUs,representingagrowthof20.5%year-on-year.KumportinTurkeyhandledacontainerthroughputof1.22millionTEUs,representingadecreaseof5.1%year-on-year.TCPinBrazilhandledacontainerthroughputof0.98millionTEUs,representingayear-on-yearincreaseof7.4%.Benefitingfromtheinclusionoftheeightnewlyacquiredports,TerminalLinkSAS(TL)handledacontainerthroughputof21.13millionTEUsintheyear,up59.4%year-on-year.Intermsofkeypriorities,firstly,theCompanypursuedthedevelopmentofhomebaseportstofullypromotetheconstructionofworld-classleadingportsandachievethestrategicgoalofbuildingastrongtransportationcountry.WestShenzhenPortZonehascloselyfollowedthedevelopmentstrategyofGuangdong-HongKong-MacaoGreaterBayAreaandcontinuedtoenhanceitscomprehensivecapability.Foroverseashomebaseports,CICTandHIPGtookfulladvantagesofthesynergyofportzonesanddevelopedthemselvesintointernationalshippingcentersinSouthAsia.Secondly,overseasexpansionhasachievedsubstantialprogress.Thedeliveryproceduresof8terminalsarisingfromtheequityacquisitionof10terminals,withsuperiorquality,fromCMACGMthroughTLwerecompleted.Atthesametime,theCompanyintroducedFujian
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
TransportationMaritimeSilkRoadInvestmentandManagementCo.Limited(福建省交通海丝投资管理有限公司)asthestrategicinvestorofHIPG.Thirdly,digitalinnovationcontinuedtobearfruits.Withthedeliveryandacceptanceofthefirstberth,theMawanIntelligentPortconstructionprojectwillbedevelopedintoabenchmarkfortheintelligenceupgradeoftraditionalterminalsathomeandabroad.TheinnovativedevelopmentofthecomplexportintheGuangdong-HongKong-MacaoGreaterBayAreagreatlyincreasedtheturnoverefficiencyofterminalsandcontainers.TheCompanyproactivelyworkedwithleadingInternettechnologycompaniestoexploretheconstructionofanopenplatformforintelligentports.ItalsoinvestedandestablishedChinaMerchantsPort(Shenzhen)IndustrialInnovationPrivateEquityInvestmentFund(招商港口（深圳）产业创新私募股权投资基金)incollaborationwithChinaMerchantsVenture,whichenhancedtheindustryecosystemthroughintegrationbetweentheindustryandthefinancialsector.OutlookLookinginto2021,thesuccessfulresearch,developmentandrolloutoftheCOVID-19vaccineswillsupporttheresumptionofglobaleconomicandsocialactivitiesandtheworld’seconomyislikelytorecover.Theyear2021followsChina’sconclusionofbuildingamoderatelyprosperoussocietyin2020andmarksthefirstyearofthe“14thFive-Year”Planand2035Vision.Chinawilltaketheinitiativetoadapttothenewenvironmentandnewchallenges.Adheringtothenewdevelopmentphilosophy,itwillpromotehigh-qualityeconomicandsocialdevelopmentbyintensifyingthesupply-siderestructuring,payingattentiontodemand-sidemanagementandestablishingthenewdualcirculationdevelopmentpattern.Asthefirstcountrytowitnessarapideconomicreboundfromthepandemic,Chinawillcontinuetoleadglobaleconomicrecoveryin2021.Itwillacceleratetheestablishmentofthenewdevelopmentpattern,inwhichthedomesticeconomiccycleisthemainstayandthedomesticandinternationaleconomiccyclesboosteachother.Themacropolicywillremainconsistent,stableandsustainable,whilesupply-sidereformanddemand-sidemanagementwillfurtherstrengthenorganicgrowthdrivers.TheindustrywillseeopportunitiesarisingfrominnovationpolicyinkeyareassuchastheYangtzeRiverDelta,Guangdong-HongKong-MacaoGreaterBayAreaandHainanFreeTradePort.Inaddition,withthesteadyprogressofthe“NewInfrastructure”project,portinvestmentwillmaintainstablegrowth.Theconstructionofleadingportswillfacilitategreenandintelligentportdevelopment,andporttransformationandupgradewillsupportsustainableindustrygrowth.TheCompanywillfirmly
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
adheretotheoveralloperationphilosophyof“makingprogressamidstability”,consistentlyimplementthenewdevelopmentconceptsandinsistonthestrategicprincipleof“leveragingonitslong-termstrategy,tappingthecurrentedges,drivingthroughtechnologyandembracingchanges”.Itwilladheretothedual-core-drivenoperatingmodelof“marketization+digitization”,whiletakingtheinitiativetorespondactivelyandmakebreakthroughsonkeymissions,exploringpotentialintheprocessofreformandinnovation,andenhancingmarketcompetitivenesswithdedication,soastobecomeaworld-classcomprehensiveportserviceproviderandgenerategreaterreturnsforshareholders.In2021,theCompanywillfocusonthefollowingtasks:
Firstly,theCompanywillsparenoefforttopromotethedevelopmentofworld-classleadingportstoimplementthestrategyofbuildingastrongtransportationcountry.ItwillrefineandoptimizethefuturedevelopmentgoalsandactionplansforWestShenzhenPortZoneandboostcomprehensivecapabilitiesinlinewiththedevelopmentstrategyoftheGuangdong-HongKong-MacaoGreaterBayArea.Throughbetterresourceallocation,enhancementofthemanagementbasis,expansionofancillaryandvalue-addedservices,andimprovementofservicestandards,itwilldevelopaportecosystemforwin-winoutcomes.Atthesametime,itwillbefullycommittedtofurtherincorporatingintelligenceelementsintoMawanIntelligentPortanddevelopingWestShenzhenPortZoneintoagloballyleadingintelligentportinGuangdong-HongKong-MacaoGreaterBayAreaandtheworld,therebyachievingbusinessinnovationandincreasingitsinfluenceintheregion.Intermsofoverseashomebaseports,CICTandHIPGwillfocusonportbusinessandstrengthencooperationwithshippingcompanies,soastoenhancebusinesssynergy,capitalizeonthecollaborativeadvantagesbetweenportzonesandevolveintoworld-classshippingcentersinSouthAsia.Secondly,theCompanywillenhancetheoverallplanningforbusinessabroadinlinewiththeoverseaslayoutof“East-Westroutes,South-Northroutes,regionsalongtheBeltandRoadInitiative”.ApartfromcompletingthedeliveryproceduresfortheremainingtwoterminalsofCMACGM,itwillimprovetheoperatingeffectivenessandefficiencyofoverseasprojectsbyoptimizingtheirmanagementandcontrolsystemandtappingintothelocationadvantagesofportsabroad.Inthefaceofthecurrentcomplexinternationaldynamic,itwillkeepabreastofchangesin
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
thetradeenvironmentandcontinuouslysearchforportinvestmentopportunitiesinfast-growingregions.Thirdly,theCompanywillstrengthentechnologyempowermenttocreateaninnovativeportecosystem.Takingtechnologyinnovationasanentrypoint,itwilloptimizeandcomplementthecomprehensiveportservicemodeltosupportlong-termgrowththroughtechnologyempowerment.Withaviewtosupportnewbusiness,theCompanywillestablishnewbusinessmodelsintheDevelopmentandResearchCenterofCMPorttoextenditsbusinesstotheupstreamanddownstreamoftheindustrialandvaluechain.Itwillalsoenhancetheoperatingeffectivenessandefficiencyofcurrentassetsthroughtechnologicalandmanagementinnovation,andboostproductionandoperationofportsandterminalsbyimprovingintelligentterminaloperationviathe“CMChip”platform.Withthe“CMePort”platform,theCompanywillinnovateabusinessmodeltoprovidebettercustomerserviceatports.Byestablishinganintelligentmanagementplatform,itwillalsoenhancecomprehensiveportmanagement.Fourthly,theCompanywillpromotecomprehensiveportdevelopment.Itwillcloselyfollowchangesinthetradeenvironment,seizeopportunitiesbroughtbytheadjustmentoftheglobalindustrialchain,andutilizefavorablepoliciestoexploitthemarket.Byadequatelyintegratingtheresourcesfromtheportindustrialchain,valuechain,logisticschainandinnovationchain,itwillexplorethePPCcomprehensivedevelopmentmodelandseekforsustainablebusinessdevelopmentthrough“investmentintroductiontoindustrialparksandcomprehensivelanddevelopment”.Fifthly,theCompanywillfurtherdeveloptheoperatingmanagementandcontrolsystemforsustainablevaluecreation.Itwillcontinuetofollowstrategicguidanceandoptimizemanagementandcontrolonaregularbasis.Itwillalsoestablishanentirelifecyclemanagementsystemforassetstoenhanceconstructionqualityandmanagementofmajorengineeringprojects.Bytheongoingimprovementofbusinessmanagementstandardsandtheapplicablerangeofregulation,itaimstodevelopaworld-classoperatingandmanagementsystem,withsustainablevalue,andavalue-orientedmanagementheadquarters.AppreciationIn2020,facingthecomplexenvironment,variousrisksandchallenges,theCompanyadheredtoitsstrategicdirectives,tooktheinitiativetoembracechanges,andthusrecordedpositiveresultsforvarioustasksanditsoperatingperformanceshavebeengrowingsteadily.Allofthesecouldnotbe
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
accomplishedwithoutthededicationfromallofourstaffandthesupportfromourshareholders,investors,businesspartners,andthoseinthesocietywhohavetakentohearttheCompany’sinterest.Forthis,Iwouldliketoextendmymostsincereappreciationanddeepestgratitude.
DengRenjie
Chairman
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagersofChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.BaiJingtao,theCompany’slegalrepresentative,LuYongxin,theCompany’sActingChiefFinancialOfficer,andSunLigan,theperson-in-chargeoftheaccountingorganherebyguaranteethatthefinancialstatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyforward-lookingstatementssuchasfutureplansordevelopmentstrategiesmentionedhereinshallnotbeconsideredastheCompany’spromisestoinvestors.Andinvestorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.PossiblerisksfacedbytheCompanyandcountermeasureshavebeenexplainedin“PartIVOperatingPerformanceDiscussionandAnalysis”herein,whichinvestorsarekindlyremindedtopayattentionto.SecuritiesTimes,ShanghaiSecuritiesNews,TaKungPao(HK)andwww.cninfo.com.cnhavebeendesignatedbytheCompanyforinformationdisclosure.AndallinformationabouttheCompanyshallbesubjecttowhat’sdisclosedontheaforesaidmedia.Investorsarekindlyremindedtopayattentiontothesemedia.TheBoardhasapprovedafinaldividendplanasfollows:basedon1,922,365,124shares,acashdividendofRMB3.80(taxinclusive)per10sharesistobedistributedtoshareholders,withnobonusissuefromeitherprofitorcapitalreserves.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionshallprevail.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
TableofContents
Chairman’sStatement ...... 2
PartIImportantNotes,TableofContentsandDefinitions ...... 8
PartIICorporateInformationandKeyFinancialInformation ...... 12
PartIIIBusinessSummary ...... 19
PartIVOperatingPerformanceDiscussionandAnalysis ...... 25
PartVSignificantEvents ...... 60
PartVIShareChangesandShareholderInformation ...... 103
PartVIIPreferredShares ...... 113
PartVIIIConvertibleCorporateBonds ...... 114
PartIXDirectors,Supervisors,SeniorManagementandStaff ...... 115
PartXCorporateGovernance ...... 134
PartXICorporateBonds ...... 152
PartXIIFinancialStatements(Seeattached) ...... 157
PartXIIIDocumentsAvailableforReference ...... 158
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Definitions
| Term | Definition |
| The“Company”,“CMPort”or“we” | ChinaMerchantsPortGroupCo.,Ltd.,formerlyknownas“ShenzhenChiwanWharfHoldingsLimited” |
| ChiwanWharf | ShenzhenChiwanWharfHoldingsLimited(stockname:ChiwanWharf/ChiwanWharf-B;stockcode:000022/200022) |
| CMG | ChinaMerchantsGroupCo.,Limited |
| CMGHongKong | ChinaMerchantsGroup(H.K.)Limited,aCMGwholly-ownedsubsidiaryinHongKong |
| CMPID | ChinaMerchantsPortInvestmentDevelopmentCompanyLimited |
| CMPortHoldings | ChinaMerchantsPortHoldingsCompanyLimited(00144.HK) |
| BroadfordGlobal | BroadfordGlobalLimited,awholly-ownedsubsidiaryofCMGHongKong |
| CMGD | ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.,aBroadfordGlobalmajority-ownedsubsidiaryinShenzhen |
| CWH(H.K.) | ChiwanWharfHoldings(HongKong)Limited |
| SinotransGuangdong | SinotransGuangdongCo.,Ltd. |
| ZhanjiangInfrastructureInvestment | ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd. |
| CNDGroup | ChinaNanshanDevelopment(Group)Inc. |
| CMB | ChinaMerchantsBankCo.,Ltd. |
| CMSK | ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. |
| MalaiStorage | ShenzhenMalaiStorageCo.,Ltd. |
| CMQianhaiIndustrial | ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd. |
| CMI | ChinaMerchantsInvestmentLimited |
| LiaoningPortGroup | LiaoningPortGroupCo.,Ltd. |
| SIPG | ShanghaiInternationalPort(Group)Co.,Ltd. |
| CMICT | NingboDaxieChinaMerchantsInternationalContainerTerminalCo.,Ltd. |
| NingboPort | NingboZhoushanPortCompanyLimited |
| ZhangzhouPort | ZhangzhouChinaMerchantsPortCo.,Ltd. |
| ShantouPort | ShantouCMPortGroupCo.,Ltd. |
| TianjinPortContainerTerminal | TianjinPortContainerTerminalCo.,Ltd. |
| TICT | Tin-CanIslandContainerTerminalLtd. |
| CMA | CMACGMSA |
| TL | TerminalLinkS.A.S. |
| ZhanjiangPort | ZhanjiangPort(Group)Co.,Ltd. |
| XiamenPort | ZhangzhouChinaMerchantsXiamenPortAffairsCo.,Ltd. |
| CCT | ChiwanContainerTerminalCo.,Ltd.,amajority-ownedsubsidiaryoftheCompany |
| Kumport | KumportLimanHizmetleriveLojistikSanayiveTicaretAnonimSirketi |
| PortofNewcastle | PortofNewcastle |
| TCP | TCPParticipa??esS.A |
| CICT | ColomboInternationalContainerTerminalsLtd. |
| PDSA | PortdeDjiboutiS.A. |
| HIPG | HambantotaInternationalPortGroup |
| CyberChic | CyberChicCompanyLimited |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| HaixingHarbor | ShenzhenHaixingHarborDevelopmentCo.,Ltd. |
| DalianPort | DalianPort(PDA)CompanyLimited |
| ShundeNewPort | GuangdongYidePortLimited |
| NortheastAsiaInvestment | ChinaMerchantsNortheastAsiaDevelopmentInvestmentCo.,Ltd.(tentativename,finalnamesubjecttotheofficiallyregisteredone) |
| JinyuRongtai | ShenzhenJinyuRongtaiInvestmentDevelopmentCo.,Ltd. |
| ChinaMerchantsVenture | ChinaMerchantsVentureCapitalManagementCo.,Ltd. |
| ChinaMerchantsVentureFund | ShenzhenChinaMerchantsVentureCapitalFundCenter(LimitedPartnership) |
| CMHIT | ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd. |
| JifaLogistics | DalianPortJifaLogisticsCo.,Ltd. |
| DPCD | DalianPortContainerDevelopmentCo.,Ltd. |
| YingkouPortGroup | YingkouPortGroupCo.,Ltd. |
| DPN | DalianPortLogisticsNetworkCo.,Ltd. |
| YPIT | YingkouPortInformationTechnologyCo.,Ltd. |
| CMHD | ChinaMerchantsHoldingsDjibouti |
| OHD | OrientureHoldings(Djibouti)FZE(tentativename,finalnamesubjecttotheofficiallyregisteredone) |
| DNC | DjiboutiNewCo(tentativename,finalnamesubjecttotheofficiallyregisteredone) |
| RSW | RedSeaWorld(tentativename,finalnamesubjecttotheofficiallyregisteredone) |
| The“AssetsPurchaseviaShareOffering” | ChiwanWharf’spurchaseof1,313,541,560ordinaryCMPortHoldingssharesfromCMIDviashareoffering |
| SASACoftheStateCouncil | State-OwnedAssetsSupervisionandAdministrationCommissionoftheStateCouncil |
| CSRC | ChinaSecuritiesRegulationCommission |
| ShenzhenCSRC | ShenzhenBureauofChinaSecuritiesRegulatoryCommission |
| SZSE | ShenzhenStockExchange |
| The“CompanyLaw” | TheCompanyLawofthePeople’sRepublicofChina |
| The“SecuritiesLaw” | TheSecuritiesLawofthePeople’sRepublicofChina |
| The“ArticlesofAssociation” | TheArticlesofAssociationofChinaMerchantsPortGroupCo.,Ltd. |
| The“StockListingRules” | TheStockListingRulesoftheShenzhenStockExchange |
| Thecninfowebsite | www.cninfo.com.cn |
| CMePort | Thewharfe-commerceplatform,i.e.theunifiedcustomerserviceplatform |
| TEU | TwentyFootEquivalentUnit |
| RMBRMB’0,000RMB’00,000,000 | ExpressedintheChinesecurrencyofRenminbiExpressedintensofthousandsofRenminbiExpressedinhundredsofmillionsofRenminbi(unlessotherwisespecified) |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | CMPortGroup/CMPortGroupB | Stockcode | 001872/201872 |
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 招商局港口集团股份有限公司 | ||
| Abbr. | 招商港口 | ||
| CompanynameinEnglish(ifany) | ChinaMerchantsPortGroupCo.,Ltd. | ||
| Abbr.(ifany) | CMPort | ||
| Legalrepresentative | BaiJingtao | ||
| Registeredaddress | 23-25/F,ChinaMerchantsPortPlaza,1Gongye3rdRoad,ZhaoshangStreet,Nanshan,Shenzhen,PRC | ||
| Zipcode | 518067 | ||
| Officeaddress | 23-25/F,ChinaMerchantsPortPlaza,1Gongye3rdRoad,ZhaoshangStreet,Nanshan,Shenzhen,PRC | ||
| Zipcode | 518067 | ||
| Companywebsite | http://www.cmp1872.com | ||
| Emailaddress | Cmpir@cmhk.com | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | LiYubin(Acting) | HuJingjing |
| Address | 24/F,ChinaMerchantsPortPlaza,1Gongye3rdRoad,ZhaoshangStreet,Nanshan,Shenzhen,PRC | 24/F,ChinaMerchantsPortPlaza,1Gongye3rdRoad,ZhaoshangStreet,Nanshan,Shenzhen,PRC |
| Tel. | +8675526828888 | +8675526828888 |
| Fax | +8675526886666 | +8675526886666 |
| Emailaddress | Cmpir@cmhk.com | Cmpir@cmhk.com |
IIIMediaforInformationDisclosureandPlacewherethisReportIsLodged
| NewspapersdesignatedbytheCompanyforinformationdisclosure | SecuritiesTimes,ShanghaiSecuritiesNews,TaKungPao |
| WebsitedesignatedbyCSRCforpublicationofthisReport | http://www.cninfo.com.cn |
| PlacewherethisReportislodged | BoardOffice |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
IVChangetoCompanyRegisteredInformation
| Unifiedsocialcreditcode | 91440300618832968J |
| ChangetoprincipalactivityoftheCompanysincegoingpublic(ifany) | On14December2018,theCompanychangeditsbusinessscoperegisteredwiththeindustrialandcommercialadministration.Thenewbusinessscopeincludes:construction,managementandoperationofportsandwharves;bondedwarehousingofvariousgoodsforimportandexport;development,constructionandoperationofsupportingparksinports;loading,unloading,transshipment,warehousingandtransportationofinternationalanddomesticgoodsandprocessingofgoods;devanningandLCLoperations,cleaning,repairing,manufacturingandleasingofcontainers;internationalfreightforwarding;vehicleandshipleasing;theprovisionofshipandportservicesincludingtheprovisionoffuels,suppliesanddailynecessitiesforships;shiptowing(nooperationusingforeignships);leasingandrepairservicesofportfacilities,equipmentandmachinery;importandexportofvariousgoodsandtechnologiesonaself-operationoragencybasis,excludingthegoodsandtechnologiesrestrictedorforbiddenforimportandexportbythestate;portlogisticsandportinformationtechnologyconsultingservices;technicaldevelopmentandservicesinrespectofmodernlogisticsinformationsystems;supplychainmanagementandrelatedservices;designoflogisticsplans;engineeringprojectmanagement;development,researchandconsultingservicesinrespectofportengineeringtechnologies.(Inrespectofanyoperationsthatrequireapprovalaccordingtolaw,theapprovalmustbeobtainedbeforeoperation). |
| Everychangeofcontrollingshareholdersinceincorporation(ifany) | 1.On8June2018,astheownershipof209,687,067ChiwanWharfsharesformerlyheldbyCNDGroupand161,190,933ChiwanWharfsharesformerlyheldbyMalaiStoragewasofficiallytransferredtoCMGD,CMGD,holding57.52%oftheCompany’soutstandingsharecapital,becamethecontrollingshareholderoftheCompany.Meanwhile,CMGremainstheactualcontrolleroftheCompany.2.On26December2018,theCompanyissuedRMB-denominatedordinaryshares(A-shares)atRMB21.46/sharetoCMPIDfortheacquisitionofthe1,313,541,560CMPortHoldingsordinarysharesthatitheld.UpontheAcquisition,theCompany’stotalsharecapitalhasbecome1,793,412,378shares.Meanwhile,asBroadfordGlobalcontrolsan87.81%aggregatedvotingrightintheCompany(directinterestsandintereststhroughCMPIDandCMGD),itisthedirectcontrollingshareholderoftheCompany.Meanwhile,CMGremainstheactualcontrolleroftheCompany. |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
VOtherInformationTheindependentauditfirmhiredbytheCompany:
| Name | DeloitteToucheTohmatsuCertifiedPublicAccountantsLLP |
| Officeaddress | 30/F,222YanAnRoadEast,HuangpuDistrict,Shanghai,P.R.C. |
| Accountantswritingsignatures | LiWeihua,ZhangMin |
TheindependentsponsorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableTheindependentfinancialadvisorhiredbytheCompanytoexerciseconstantsupervisionovertheCompanyintheReportingPeriod:
□Applicable√NotapplicableVIKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
□Applicable√Notapplicable
| 2020 | 2019 | 2020-over-2019change | 2018 | |
| Operatingrevenue(RMB) | 12,618,529,996.02 | 12,123,829,423.74 | 4.08% | 9,703,394,622.58 |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 2,065,322,969.66 | 2,898,192,168.84 | -28.74% | 1,090,418,910.77 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 1,262,830,563.26 | 1,037,766,875.23 | 21.69% | 516,155,803.81 |
| Netcashgeneratedfrom/usedin | 5,495,800,917.01 | 5,501,873,415.94 | -0.11% | 4,288,575,424.84 |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| operatingactivities(RMB) | ||||
| Basicearningspershare(RMB/share) | 1.07 | 1.59 | -32.70% | 0.61 |
| Dilutedearningspershare(RMB/share) | 1.07 | 1.59 | -32.70% | 0.61 |
| Weightedaveragereturnonequity(%) | 5.66% | 8.71% | -3.05% | 3.88% |
| 31December,2020 | 31December,2019 | Changeof31December,2020over31December,2019(%) | 31December,2018 | |
| Totalassets(RMB) | 168,543,611,777.21 | 156,696,917,845.87 | 7.56% | 128,018,084,415.68 |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 37,117,806,052.18 | 35,972,804,419.42 | 3.18% | 30,760,475,412.93 |
Indicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegativeforthelastthreeaccountingyears,andthelatestindependentauditor’sreportindicatedthattherewasuncertaintyabouttheCompany’sabilitytocontinueasagoingconcern.
□Yes√NoIndicatebytickmarkwhetherthelowerofthenetprofitattributabletothelistedcompany’sshareholdersbeforeandafterexceptionalgainsandlosseswasnegative.
□Yes√NoVIIAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
3.ReasonsforAccountingDataDifferencesbetweenDomesticsandForeignAccountingPrinciple:NotapplicableVIIIKeyFinancialInformationbyQuarter
Unit:RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operatingrevenue | 2,886,025,618.74 | 3,036,471,539.74 | 3,239,264,119.14 | 3,456,768,718.40 |
| Netprofitattributabletothelistedcompany’sshareholders | 149,871,785.99 | 482,926,799.84 | 642,339,845.93 | 790,184,537.90 |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses | 199,867,940.76 | 344,723,973.78 | 605,513,230.59 | 112,725,418.13 |
| Netcashgeneratedfrom/usedinoperatingactivities | 847,165,371.60 | 1,224,260,773.32 | 1,665,387,875.49 | 1,758,986,896.60 |
IndicatebytickmarkwhetheranyofthequarterlyfinancialdatainthetableaboveortheirsummationsdiffersmateriallyfromwhathavebeendisclosedintheCompany’squarterlyorsemiyearlyreports.
□Yes√NoIXExceptionalGainsandLosses
Unit:RMB
| Item | 2020 | 2019 | 2018 | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 1,480,572,929.90 | 4,794,562,782.79 | 6,512,480.64 | - |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniform | 238,216,977.76 | 162,587,042.38 | 14,050,544.16 | - |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| standards) | ||||
| Capitaloccupationchargesonnon-financialenterprisesthatarechargedtocurrentprofitorloss | 232,906,880.87 | 19,571,040.36 | - | - |
| Currentprofitorlossonsubsidiariesobtainedinbusinesscombinationsinvolvingenterprisesundercommoncontrolfromtheperiod-beginningtocombinationdates,net | - | - | 2,685,592,888.44 | - |
| Gainorlossonfair-valuechangesinheld-for-tradingandderivativefinancialassetsandliabilities&incomefromdisposalofheld-for-tradingandderivativefinancialassetsandliabilitiesandotherinvestmentsindebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | -409,658,173.58 | 66,075,363.30 | - | - |
| Reversedportionsofimpairmentallowancesforaccountsreceivableandcontractassetswhicharetestedindividuallyforimpairment | 46,709,066.77 | - | - | - |
| Custodianfeesearnedfromentrustedoperation | 1,886,792.45 | - | - | - |
| Non-operatingincomeandexpenseotherthantheabove | -42,615,710.20 | 482,165,418.73 | -3,767,817.73 | - |
| Othergainsandlossesthatmeetthedefinitionofexceptionalgain/loss | 753,988,749.80 | 732,644,357.06 | -121,311,211.59 | GainresultedfromrevaluationtothefairvalueoftheoriginalholdingsharesofCMICTduetotheacquisitionin2020 |
| Less:Incometaxeffects | 241,651,237.66 | 1,504,203,995.96 | 3,010,149.89 | - |
| Non-controllinginterestseffects(netoftax) | 1,257,863,869.71 | 2,892,976,715.05 | 2,003,803,627.07 | - |
| Total | 802,492,406.40 | 1,860,425,293.61 | 574,263,106.96 | -- |
ExplanationofwhytheCompanyreclassifiesrecurrentgain/lossasanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompanies
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
OfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartIIIBusinessSummary
IPrincipalActivityoftheCompanyintheReportingPeriod
1.MainbusinessscopeandbusinessmodelsTheCompanyisprincipallyengagedinthehandling,warehousingandtransportationofcontainersandbulkcargoes,aswellastheprovisionofotherancillaryservices.Itprincipallyoperates24containerberthsand18bulkcargoberthsintheportsinWestShenzhenandDongguanMachong,9containerberths,2bulkcargoberths,10generalcargoberths,and1coal-handlingspecificberthinShantouPort,2containerberthsand33bulkcargoberthsinZhanjiangPort,4multi-purposeberthsinShundePort,2containerberthsand6bulkcargoberthsinZhangzhouPort,4containerberthsinNingboDaxie,4containerberthsinCICT,SriLanka,4multi-purposeberths,2oilberthsand4containerberthsinHIPG,SriLanka,3containerberthsinLCT,Togo,and4containerberthsinTCP,Brazil.Moreover,theCompanyinvestsincontainerhubsinShanghaiandTianjinandexpandsitslayouttoportsinAsia,Africa,Europe,Oceania,SouthAmericaandNorthAmerica.
ThemajorbusinesssegmentsofChinaMerchantsPortGroupCo.,Ltd.areasfollows:
| BusinessSegments | Applications |
| Cargohandlingandwarehousing | Containerhandlingandwarehousing:theCompanyprovidesshipberthing,loadinganddischargingservicestoshipcompanies,offerscontainerstorageservicetoshipcompaniesandcargoownersandprovidesoverheadboxservicestotractorcompanies.TheCompanyalsoengagesinthebusinessesofdivisionormergerofcargoesincontainers,containerleasingandcontainermaintenance;Bulkcargohandlingandwarehousing:theCompanyisengagedinbulkcargohandlingandtransportationinportzones,aswellasstorageservicesinyards.Themajortypesofcargoeshandledincludefood,steel,woodsandsandstones. |
| Ancillaryport-relatedservices | Theancillaryport-relatedservicesoftheCompanymainlyincludetugboatberthingassistanceandbargeservicesatthearrivalofshipstotheports,tallyinginthecourseofcargohandling,andsupplyofshorepowerandfreshwaterforvessels. |
| Bondedlogisticsoperations | TheCompanyprovidesvariousservicesforclients(includinglogisticscompanies,tradingcompaniesorcargoowners),forexample,warehouse/yardleasing,loading |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
2.DevelopmentstageandcyclicalcharacteristicoftheindustryinwhichtheCompanyoperatesanditsindustrypositionduringthereportingperiodTheportindustryisacrucialcornerstoneindustryfornationaleconomicandsocialdevelopment,andiscloselylinkedtoglobaleconomyandtrade.In2020,astheCOVID-19pandemicspreadacrosstheworld,theglobaleconomytookaheavyhit,resultinginacomplexandunfavorableinternationalpoliticalandeconomiclandscape.Inthefirsthalfoftheyear,theshrinkingseabornefreightvolumeofglobalcontainerthroughput,duetothepandemic,posedchallengestoportproduction.Duringthesecondhalfoftheyear,mostofthecountriesreopenedtheireconomy,sotheportandshippingmarketbegantorecover.WiththefullresumptionofoperationandproductioninChina,importandexportreboundedbydegreesanddomesticportproductiongrewsteadily.Thepandemichasalsoacceleratedthedigitalizationoftheportandshippingindustry,whichwillbringnewdevelopmentopportunitiesforcostreduction,efficiencyenhancementandinnovationinthebusinessmodel.TheCompanyisthelargestportdeveloper,investorandoperatorinthePRCandtheleadingcomprehensiveportserviceproviderintheworld,withawell-developedportnetworkatmajorhublocationsalongcoastalChina.IthasalsosuccessfullyestablishedpresencesinAsia,Africa,Europe,Mediterranean,Oceania,SouthAmericaandNorthAmerica.Byitsproactive,soundandefficientoperatingstyle,theCompanycapitalizesonitsglobalportportfolio,professionalmanagementexperience,theself-developedstate-of-the-artterminaloperationsystemandintegratedlogisticsmanagementplatformforexportsandimports,therebyprovidingitscustomerswithtimelyandefficientportandmaritimelogisticsservicesalongwithcomprehensiveandmodernintegratedlogisticssolutions.Inaddition,theCompanyalsoinvestsinbondedlogisticsoperationandlaunchesintegratedparkdevelopmentbusiness,facilitatesthetransformationandupgradeofportindustry,
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
developscomprehensiveportservices,increasesitsindustrycompetitiveness,andcreatesgreatervaluethroughthesynergiesoftheexistingterminalnetwork.IISignificantChangesinMajorAssets
1.SignificantChangesinMajorAssets
| Majorassets | Mainreasonforsignificantchanges |
| Equityassets | Nosignificantchange |
| Fixedassets | Nosignificantchange |
| Intangibleassets | Nosignificantchange |
| Constructioninprogress | Nosignificantchange |
2.MajorAssetsOverseas
| Asset | Source | Assetvalue(RMB’0,000) | Location | Operations | Controlmeasurestoprotectassetsafety | Returngenerated(RMB’0,000) | As%oftheCompany’snetassetvalue | Materialimpairmentrisk(yes/no) |
| Equityassets | Acquiredviashareoffering | 14,005,085.57 | HongKong | Portinvestmentandoperations | Appointingdirector,supervisorandseniormanagement | 506,441.23 | 87.92% | No |
| Otherinformation | N/A | |||||||
III.Corecompetitivenessanalysis
1.Commitmenttothedevelopmentpatternoftheglobalindustrialchainandthenational“BeltandRoad”cooperationinitiativetobuildandcapabilitytoallocateandoperateitsglobalportnetwork.AsanimportantcarrierfordomesticandoverseasportinvestmentandoperationofCMG,theCompanygainedin-depthinsightintothecurrentstates,trendsanddrivingfactorsoftheglobalindustrialchain.Basedontheinsight,itfollowedthedevelopmentpatternoftheglobalindustrialchainandseizedthesignificantpolicyopportunitiesarisingfromthekey“BeltandRoad”initiative
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
andthebuildingoftheGuangdong-HongKong-MacaoGreaterBayAreatoactivelybuildaglobalportnetworkandarrangefortheinvestmentandallocationofglobalresources.Inrecentyears,throughmergers,acquisitions,restructuration,renovationofoldports,andbuildingofnewports,theCompanyhasbeenconsistentlyimprovingitsmodernportchainwithglobalcoverage,enhancingthevalueoftheportindustry,andpushingforwardbalancedregionaldevelopment.LeveragingtheWestShenzhenhomebaseport,theCompanyprovidedacomprehensiveandintegratedlogisticserviceplatformforthedevelopmentoftheGuangdong-HongKong-MacaoGreaterBayArea.Afteryearsofoverseasdevelopment,CMPorthasextendedtheportandpark-relatedbusinessacrossSoutheastAsia,SouthAsia,Africa,Europe,Oceania,etc.Itsportnetworkcomprises50portswhicharelocatedin26countriesandregionsonsixcontinents.Adheringtotheprincipleof“extensiveconsultation,jointdevelopmentandsharedbenefits”,CMPorthasdevelopedlocal-basedbusinessoperationandformedacommunityofsharedfuturewithstakeholdersfromcountriesandregionsalongthe“BeltandRoad”initiativetoexploredevelopmentopportunitieswithconcertedefforts.Atthesametime,thediversifiedinvestmentandoperationofportassetsathomeandabroadhavealsoeffectivelyenhanceditscapabilitiesofresistingrisksofindustryfluctuations,tradefictionsandunexpectedevents.
2.Centeringonendcustomers,developingcomprehensivelogisticsservice,securingthesafetyoftheglobalsupplychainforChineseenterprises.TheCompanyaimsatincreasingitsglobalpresencewithshippingroutesacrossfivecontinents.Asboththeshippingandportsectorsgraduallyshiftedtoformingalliances,theCompanyactivelyintegrateditsdomesticandoverseasportassetsandcapitalizedonitsrelativelycompleteglobalportnetworktoprovidemorecomprehensiveandeffectiveintegratedlogisticsservicesolutionsfortheglobalsupplychaintosatisfycustomerneeds,formingitsuniquecompetitivestrength.BasedontheWestShenzhenhomebaseportandtheShundeNewPort,itbuiltthefirstcomplexportintheGreaterBayAreatomeettheunsatisfiedcustomerneeds,promotingthedevelopmentoftheGuangdong-HongKong-MacaoGreaterBayArea.WhilesafeguardingtheglobalindustrialchainforChineseindustrialenterprises,italsosecuredsupplyforpeople’slivelihoodinthecountrythroughtheimportanddomestictradebusiness,therebyacceleratingtheformationofChina’snewdevelopmentpattern,thedomesticeconomiccycleasthemainstayandthedomesticandinternationaleconomiccyclesboostingeachother.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
3.LonghistoryandsoundshareholderbackgroundEstablishedin1872,whichis149yearsago,CMGhasbecomeanexemplarymodelforChineseenterprisesanddevelopedstrongbrandpower.Itisalsoakeystate-ownedenterpriseunderthedirectadministrationofthePRCcentralgovernment.HeadquarteredinHongKong,CMGisanintegratedenterprisewithdiversifiedbusinessesandoneofthefourmajorChineseenterprisesinHongKong.Currently,itismainlyengagedinthreecoreindustriesnamelytransportation,finance,andrealestate,whilefocusingonfourkeysectorsincludinginfrastructureandequipmentmanufacturing,logisticsandshipping,integratedfinance,andcomprehensivedevelopmentofcitiesandparks.CMGhasbeenratedasaGradeAenterpriseintheOperatingResultsAssessmentoftheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncilfor16consecutiveyearsandisacentralstate-ownedenterprisethatownstwoFortune500companies.Beingacrucialplayerandfacilitatorofthenational“BeltandRoad”initiative,CMGhasaccelerateditsinternationaldevelopmentandpreliminarilyformedarelativelycompletenetworkofoverseasports,logistics,finance,andparkbusiness.ThesoundshareholderbackgroundandampledomesticandoverseasresourcesofCMGhaveprovidedstrongsupporttoCMPortforconstructingaglobalportcooperationplatformwithinternationalvisionandglobalexpansioncapabilitiesandultimatelybecomingaworld-classcomprehensiveportserviceprovider.
4.InnovativedevelopmentandidentificationofandadaptationtochangesTomaximizereturnforshareholders,theCompanystrivedfor“technology-ledandinnovation-driven”growthphilosophy.Throughin-depthindustryresearchesandanalysisofmanagement,modelandtechnologydevelopmenttrend,itgainsinsightsintochangingcustomerdemandsandmeetsfuturechallengeswithinnovativedevelopment.Takingportbusinessasthecoreandleveragingthesynergyofdifferentportzonesaswellascity-industryintegration,theCompanyisactivelyexploringandfacilitatingthecomprehensiveportdevelopmentmodelof“Port-Park-City”.Basedonthetraditionalloadinganddischargingandancillaryservicesatports,itestablishedthecomprehensivedevelopmentmodelthatofferedhighvalue-addedservicestoenterprises.Bygatheringtalents,data,fundsandcommodities,theCompanyprovidedeconomicsupportforurbandevelopment,continuedtoinnovateindustrydevelopmentmodel,andexpandedregionalcoverageandinfluence,therebydrivingurbanupgradeanddevelopment.Currently,theCompanyhasparticipatedinpromotingtheport-orientedregional
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
comprehensivedevelopmentandconstructioninvariousoverseasregionsandhasachievedphasedprogresses.Atthesametime,theinnovativebusinessdevelopmentmodelintroducestheelementsofChinaMerchantstourbandevelopmentandhelpsfosternewprofitgrowthpointsfortheCompany.Inresponsetocurrentdevelopmentneeds,theCompanyhaslaunchedtheintelligence-integratedcomprehensiveportservices.TheninemajorintelligentelementsoftheMawanIntelligentPorthavebeenshapedintointelligence-integratedproductsavailableforduplicationandpromotion.Meanwhile,theCompanyhasbeendevelopinganintelligencemanagementplatformtoensureitsinternalmanagementuptodate.Duringthepandemic,itsinnovationplatformandtechnologyapplicationachievednotablebreakthroughs.
5.ExtensiveexperienceinprofessionalportmanagementwithsoundandefficientoperatingstyleAdheringtotheproactive,soundandefficientoperatingstyleandbenefitingfromitsglobalportassetsandresourcesportfolio,theCompanyiscommittedtoprovidingcustomerswithtimelyandefficientportandmaritimelogisticsservicesaswellasprofessionalandfirst-classsolutions,andhasbecomethepreferredpartnerforcustomersandanimportantgatewayforthecountry’sforeigntrade,therebymakingduecontributionstothecountry’sforeigntradedevelopment.Atthesametime,theCompanyalsomadeanextensiveinvestmentinbondedlogisticsbusinesstoexpanditsportvaluechainandenhanceindustrialvalue.Takingadvantagesofthesynergyofitsexistingterminalnetwork,theCompanycreatedvaluesforbothitscustomersandshareholders.TheCompanyhasearneditselfgoodreputationacrosstheindustrybyitsprofessionalmanagementexperienceaccumulatedforyears,itsself-developedgloballeadingterminaloperatingsystemandintegratedlogisticsmanagementplatformforimportandexport,itsextensivemaritimelogisticssupportsystemwithall-roundedmodernintegratedlogisticssolutions,anditshigh-qualityengineeringmanagementandreliableserviceofferings.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartIVOperatingPerformanceDiscussionandAnalysis
IOverview
1.ExternalEnvironmentAnalysis
(1)MacroeconomicenvironmentIn2020,theincreasinglycomplexinternationalenvironmentwascharacterizedbythesignificantincreaseinuncertaintiesandthefar-reachingandunprecedentedimpactbroughtbyCOVID-19.Accordingtothe“WorldEconomicOutlook”reportpublishedbytheInternationalMonetaryFundinJanuary2021,theglobaleconomyisexpectedtoshrinkby3.5%year-on-yearin2020.Developedeconomiesandemergingeconomiesareexpectedtodeclineby4.9%and2.4%respectively,whiletheAmericaandEurozoneeconomiesareexpectedtorecordadecreaseof3.4%and7.2%respectivelyduetothesevereimpactfromCOVID-19pandemic.TheCOVID-19pandemicstartedtospreadacrossEastandSoutheastAsiainearly2020.Sincethesecondquarter,AmericaandEuropehavebecomethepandemicepicentersandwitnessedthesecondandthirdwavesoftheoutbreak,posingseriouschallengestoglobaleconomicrecovery.Facingthecomplicatedanddifficultinternationalenvironment,Chinaorganizedandpromotedpandemicpreventionandcontrolalongwitheconomicandsocialdevelopment.Itseffortsnotonlyeffectivelyfacilitatedtherestorationofnormalproductionandeverydaylife,butalsoyieldedsignificantstrategicachievementsindiseasepreventionandcontrol.Inthemeantime,Chinaacceleratedtheestablishmentofthenewdevelopmentpatterninwhichthedomesticeconomiccycleisthemainstayandthedomesticandinternationaleconomiccyclesboosteachother.Asaresult,thenationaleconomyrecoveredsteadilyandrecordedanannualGDPgrowthof2.3%in2020,makingChinatheonlymajoreconomywithpositiveeconomicgrowthintheworld.Inthesecondhalfof2020,theinfrastructureconstructions,alongwithotherfixedassetinvestments,providedgreatersupportstoeconomyrecoveryandChinarecordedbetter-than-expectedgrowthinforeigntradedrivenbyregionaltradeandcooperation.Consumptiondemandgraduallypickedupandtheeconomyshowedpositivesignsofrecovery.Overall,China’seconomymaintaineditsupwardtrendinthelong-run.Toachievehigh-qualityeconomicgrowth,Chinawillintensifythesupply-side
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
restructuringandpayattentiontodemand-sidemanagementinthemeantime.AccordingtothestatisticspublishedbytheGeneralAdministrationofCustoms,China’stotalimportandexportvalueamountedtoRMB32.16trillionin2020,representinganincreaseof1.9%year-on-year.Amongwhich,theexportvaluewasRMB17.93trillion,representinganincreaseof4.0%year-on-year,whiletheimportvaluewasRMB14.23trillion,representingadecreaseof0.7%year-on-year.TradesurplusamountedtoRMB3.7trillion,representinganincreaseof27.4%year-on-year.
(2)MarketenvironmentoftheportandshippingindustryIn2020,theglobalcontainershippingmarketsufferedfromvolatiledemand.Duringthefirsthalfoftheyear,thecontainershippingmarketwasseverelyimpactedbythepandemic,whichresultedintheidlingofshippingcapacitytoacertainextent.Inthesecondhalfoftheyear,variouscountriesimplementedeconomicstimuluspoliciesandcommercedemandrebounded.Thesefactors,coupledwithhighdemandintraditionalpeakseasonandtheshortageofcontainers,ledtoongoingstrongdemandinthecontainershippingmarketandtheutilizationofidlecapacityinagradualpace.Thesignificantimprovementinbusinessperformancesofshippingcompaniesingeneralwasdrivenbyrisingfreightrates.TheCOVID-19pandemicledtothedeclineinglobalportcontainerthroughputin2020.AccordingtodatafromAlphaliner,theglobalcontainerportthroughputamountedto827millionTEUsin2020,downby1.4%year-on-year.Benefitingfromthesuccessindomesticpandemicpreventionandcontrol,China’simportandexportforforeigntradestabilizedrapidlyandcontinuedtogrow,whilethedomesticportproductionmaintainedanupwardtrendingeneral.AccordingtotheinformationpublishedbytheMinistryofTransportofthePeople’sRepublicofChina,theaccumulatedportcontainerthroughputinChinaamountedto264millionTEUsin2020,representingayear-on-yearincreaseof1.2%.
2.PortBusinessReview
(1)OverviewofportbusinessIn2020,theCompany’sportshandledatotalcontainerthroughputof121.71millionTEUs,upby
7.8%year-on-year.BulkcargovolumehandledbytheCompany’sportsdecreasedby7.1%year-on-yearto450milliontons.DuringtheReportingPeriod,operatingrevenueoftheCompanyamountedtoRMB12.619billion,representingayear-on-yearincreaseof4.08%.
Table4-1ThroughputoftheCompanyandchangesin2020
| Item | 2020 | 2019 | Changes |
| Containerthroughput(’0,000TEU) | 12,171 | 11,293 | 7.8% |
| Amongwhich:MainlandChina | 8,576 | 8,488 | 1.0% |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| HongKongandTaiwan | 716 | 721 | -0.7% |
| Overseas | 2,878 | 2,084 | 38.1% |
| Bulkcargothroughput(hundredmilliontonnes) | 4.5 | 4.9 | -7.1% |
| Amongwhich:MainlandChina | 4.48 | 4.83 | -7.1% |
| Overseas | 0.058 | 0.063 | -7.2% |
Note:1.Thestatisticsrepresentedthetotalthroughputoftheholdingsubsidiaries,associatesandjointventuresoftheCompany.2.Discrepanciesbetweentotalsandsumsofsub-itemslistedareduetorounding.Forcontainerbusiness,theCompany’sportsinChinahandledcontainerthroughputof85.76millionTEUs,representingayear-on-yearincreaseof1.0%.PortsinHongKongandTaiwanregionscontributedtotalcontainerthroughputof7.16millionTEUs,indicatingadecreaseof0.7%year-on-year.ThetotalcontainerthroughputhandledbytheCompany’soverseasportsgrewby
38.1%year-on-yearto28.78millionTEUs,mainlybenefitingfromtheinclusionoftheeightnewlyacquiredterminalsbyTLandthebusinessgrowthofLCTinTogoandTCPinBrazil.Intermsofbulkcargobusiness,theCompany’sportsinMainlandChinahandledabulkcargovolumeof448milliontons,down7.1%year-on-year.Overseasportshandledabulkcargovolumeof5.83milliontons,down7.2%year-on-year,mainlyduetothedecreaseinthroughputatPDSAinDjiboutiandKumportinTurkey.
(2)Operationconditionofportbusinessbyregion
Table4-2ContainerthroughputoftheCompanyandchangesin2020
(in’0,000TEU)
| Regionandportcompany | 2020 | 2019 | Changes | ||
| PearlRiverDelta | Holdingcompany | WestShenzhenPortZone | 1,184 | 1,142 | 3.6% |
| ShundeNewPort | 43 | 30 | 44.1% | ||
| Jointstockcompany | ChuKongRiverTradeTerminal | 106 | 109 | -3.4% | |
| YangtzeRiverDelta | Jointstockcompany | SIPGGroup | 4350 | 4,330 | 0.5% |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Holdingcompany | NingboDaxie | 332 | 329 | 0.9% | |
| BohaiRim | Jointstockcompany | TianjinPortContainerTerminal | 787 | 447 | 75.8% |
| QQCTU | 810 | 792 | 2.2% | ||
| DalianPort | 654 | 1,022 | -36.0% | ||
| South-EastregionofMainlandChina | Holdingcompany | ZhangzhouPort | 32 | 42 | -25.4% |
| ShantouPort | 159 | 134 | 18.9% | ||
| South-WestregionofMainlandChina | Holdingcompany | ZhanjiangPort | 122 | 111 | 10.1% |
| HongKongandTaiwan | Holdingcompany/Jointstockcompany | CMCS/ModernTerminals | 556 | 557 | -0.2% |
| Jointstockcompany | TaiwanKaoMingContainer | 160 | 164 | -2.2% | |
| Overseas | Holdingcompany | CICT | 293 | 288 | 1.9% |
| TCP | 98 | 92 | 7.4% | ||
| LCT | 136 | 113 | 20.5% | ||
| Jointstockcompany | TL | 2113 | 1,325 | 59.4% | |
| Kumport | 122 | 128 | -5.1% | ||
| PDSA | 86 | 92 | -6.3% | ||
| TICT | 30 | 47 | -35.3% | ||
| Total | 12,171 | 11,293 | 7.8% | ||
Note:1.DuetotherestructuringofTianjinFiveContinentsInternationalContainerTerminalCo.,Ltd.,aformerjointstockcompanyoftheCompany,theCompanyhasadjustedthestatisticalcaliberofTianjinPortContainerTerminalandincludeditinthestatisticssinceSeptember2019;2.SinceApril2020,theCompanyhasnewlyincludedthebusinessvolumeofeightnewterminals
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
acquiredbyTL,ajointstockcompanyoftheCompany;3.Discrepanciesbetweentotalsandsumsofsub-itemslistedareduetorounding.
Table4-3BulkcargovolumehandledbytheCompanyandchangesin2020
(in’0,000tonnes)
| Regionandportcompany | 2020 | 2019 | Changes | ||
| PearlRiverDelta | Holdingcompany | WestShenzhenPortZone | 1,807 | 1,300 | 39.0% |
| DongguanMachong | 1,548 | 1,227 | 26.2% | ||
| ShundeNewPort | 395 | 226 | 74.4% | ||
| Jointstockcompany | ChuKongRiverTradeTerminal | 308 | 353 | -12.8% | |
| YangtzeRiverDelta | Jointstockcompany | SIPGGroup | 7,565 | 11,515 | -34.3% |
| BohaiRim | Jointstockcompany | QQTU | 1,629 | 1,559 | 4.5% |
| QingdaoPortDongjiakou | 6,315 | 5,990 | 5.4% | ||
| DalianPort | 13,124 | 13,204 | -0.6% | ||
| LaizhouHarbourAffairs | 2,056 | 2,272 | -9.5% | ||
| South-EastregionofMainlandChina | Holdingcompany | ZhangzhouPort | 633 | 814 | -22.3% |
| XiaMenBayTerminals | 65 | 27 | 137.7% | ||
| ShantouPort | 314 | 709 | -55.7% | ||
| South-WestregionofMainlandChina | Holdingcompany | ZhanjiangPort | 9,087 | 9,117 | -0.3% |
| Overseas | Holdingcompany | HIPG | 124 | 50 | 145.6% |
| Jointstockcompany | Kumport | 7 | 10 | -35.9% | |
| PDSA | 453 | 568 | -20.2% | ||
| Total | 45,430 | 48,908 | -7.1% | ||
Note:1.HIPGhasincludedliquidbulkcargointhestatisticsofitsbusinessvolumesince2020;
2.Discrepanciesbetweentotalsandsumsofsub-itemslistedareduetorounding.PearlRiverDeltaregionTheCompany’sterminalsinWestShenzhenPortZonehandledatotalcontainerthroughputof
11.84millionTEUs,upby3.6%year-on-year.Bulkcargovolumehandledamountedto18.07
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
milliontons,upby39.0%year-on-year.ChuKongRiverTradeTerminalhandledatotalcontainerthroughputof1.06millionTEUsandabulkcargovolumeof3.08milliontons,downby3.4%and
12.8%year-on-yearrespectively,mainlyduetothesuspensionofcertainforeigntraderoutesaffectedbythepandemic.DongguanMachongTerminalhandledbulkcargovolumeof15.48milliontons,upby26.2%year-on-year,mainlyduetothesignificantincreaseinimportedgrainsintheregion.GuangdongYidePortLimited(ShundeNewPort)handledacontainerthroughputof
0.43millionTEUs,upby44.1%year-on-year,mainlyduetothesteadyincreaseinforeigntradevolumewiththecommencementofforeigntradebusinesssinceJuly2019.Italsohandledabulkcargovolumeof3.95milliontons,upby74.4%year-on-year,mainlyduetofurthermarketexpansion.YangtzeRiverDeltaregionSIPGhandledacontainerthroughputof43.50millionTEUs,upby0.5%year-on-year.Bulkcargovolumehandleddeclinedby34.3%year-on-yearto75.65milliontonsbecauseoftheimpactofthepandemicandadjustmentofbusinessstructure.NingboDaxieChinaMerchantsInternationalTerminalsCo.,Ltd.(NingboDaxie)handledacontainerthroughputof3.32millionTEUs,representinganincreaseof0.9%year-on-year.BohaiRimregionQingdaoQianwanUnitedContainerTerminalCo.,Ltd.(QQCTU)handledacontainerthroughputof8.10millionTEUs,representinganincreaseof2.2%year-on-year.QingdaoQianwanWestPortUnitedTerminalCo.,Ltd.(QQTU)handledabulkcargovolumeof16.29milliontons,representinganincreaseof4.5%year-on-year.Becausetherisingdomesticdemandforironoreledtotheincreaseintheforeigntradevolumeofironore,QingdaoPortDongjiakouOreTerminalCo.,Ltd.handledabulkcargovolumeof63.15milliontons,indicatinganincreaseof5.4%year-on-year.DalianPort(PDA)CompanyLimitedhandledacontainerthroughputof6.54millionTEUs,representingadecreaseof36.0%year-on-year,mainlyduetotheimpactofthepandemicandadjustmentofbusinessstructure.Bulkcargovolumehandleddecreasedby0.6%year-on-yearto131milliontons.Duetointensifyingregionalcompetitionandenvironmentalpolicy,LaizhouHarbourAffairshandledabulkcargovolumeof20.56milliontons,representingayear-on-yeardecreaseof9.5%.SincetheCompanyparticipatedinthemergerofcontainerterminalsinTianjin
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
whichwascompletedinAugust2019,TianjinPortContainerTerminalCo.,Ltd.contributedacontainerthroughputof7.87millionTEUs,representingayear-on-yearincreaseof75.8%.South-EastregionofMainlandChinaZhangzhouChinaMerchantsPortCo.,Ltd.(“ZhangzhouPort”)handledacontainerthroughputof
0.32millionTEUs,decreasedby25.4%year-on-year,whileitsbulkcargovolumehandleddecreasedby22.3%year-on-yearto6.33milliontons,whichismainlyaffectedbythepandemicandtheenvironmentalpoliciesinthehinterland.SinceMay2019,XiaMenBayChinaMerchantsTerminalsCo.,Ltd.(XiaMenBayTerminals)hasinitiateditsofficialoperationandhandledabulkcargovolumeof0.65milliontons,upby137.7%year-on-year.ShantouChinaMerchantsPortGroupCo.,Ltd.handledacontainerthroughputof1.59millionTEUs,upby18.9%year-on-year,mainlyduetothegrowthinthevolumeofdomestictradecontainersandabulkcargovolumeof
3.14milliontons,downby55.7%year-on-year,draggeddownbytheimpactoflocalenvironmentalpoliciesandthevacationofoldports.South-WestregionofMainlandChinaZhanjiangPort(Group)Co.,Ltd.handledacontainerthroughputof1.22millionTEUs,upby
10.1%year-on-year,mainlyattributabletotheexpansionofnewshippingroutesandthenewdomestictransshipmentbusiness.Italsohandledabulkcargovolumeof90.87milliontons,downby0.3%year-on-year.HongKongandTaiwanregionsModernTerminalsLimitedandChinaMerchantsContainerServicesLimitedinHongKongdeliveredanaggregatecontainerthroughputof5.56millionTEUs,downby0.2%year-on-year.KaoMingContainerTerminalCorp.inKaohsiung,ChinaTaiwan,handledatotalcontainerthroughputof1.60millionTEUs,representingadecreaseof2.2%year-on-year.OverseasoperationInSriLanka,CICThandledacontainerthroughputof2.93millionTEUs,upby1.9%year-on-year;thebulkcargovolumehandledbyHIPGwas1.24milliontons,increasedby145.6%year-on-year,mainlyduetothegrowthincementbusinessinthesecondhalfoftheyear.ItsRO-ROvolumewas
0.375millionvehicles,downby8.5%year-on-year,mainlyduetothepandemic,thesuspensionofautomobileproductioninIndianfactories,anddeclineinthelocalvehicleimported.Container
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
throughputhandledbyLCTinTogoincreasedby20.5%year-on-yearto1.36millionTEUs,whichwasmainlyduetothetransferofsometransshipmentroutesfromregionsseriouslyimpactedbythepandemictoLCTinTogobyshippingcompanies.ContainerthroughputhandledbyTICTinNigeriawas0.30millionTEUs,representingadecreaseof35.3%year-on-year,mainlyduetothedecreaseinimportdemandaffectedbythepandemicandthedropofoilprices.Giventhedecliningimportandexportdemandinthehinterland,PDSAinDjiboutihandledacontainerthroughputof
0.86millionTEUs,downby6.3%year-on-year,andabulkcargovolumeof4.53milliontons,downby20.2%year-on-year.TLhandledacontainerthroughputof21.13millionTEUs,upby
59.4%year-on-year,whichwasmainlybenefittedfromthecontainerthroughputhandledbytheneweightportswhoseacquisitionwascompletedinMarch2020.ContainerthroughputhandledbyKumportinTurkeywas1.22millionTEUs,representingadecreaseof5.1%year-on-year;whilebulkcargovolumehandledwas70thousandtons,downby35.9%year-on-year,whichwasmainlyduetothedeclineofmarbleexportsaffectedbythepandemic.Benefittedfromtheincreaseinimportandexportcontainervolumedrivenbythegrowthinthetradeofagriculturalandmeatproducts,TCPinBrazilhandledacontainerthroughputof0.98millionTEUs,upby7.4%year-on-year.
3.ImplementationofbusinessplanduringthereportingperiodDuringtheReportingPeriod,theCompanycontinuedtopursueitsstrategicfocus.Itadheredtothestrategicdirectivesandthegeneraloperationphilosophyof“enhancingcorecapability,insistingonbothqualityandefficiency,capitalizingonopportunitiesofthisera,andstrivingtobecomeaworld’sleadingenterprise”withanunwaveringaspirationtoreinforceitsfoundationandmadeinnovationwithapragmaticattitude.Strivingtoachievebreakthroughsinsevenkeyaspects,namelythebuildingofhomebaseports,businessexpansion,innovativedevelopment,comprehensivedevelopment,operationmanagement,capitaloperation,andmarketingandcommerce,theCompanyactivelyimplementedvariouskeytasksandmaintainedsteadygrowthinallbusinesssegmentsin2020.Intermsofthedevelopmentofhomebaseports,theCompanyacceleratedthebuildingofworld-classportsinlinewiththenational“OutlinefortheConstructionofaStrongTransportationCountry”andthe“GuidingOpinionsontheConstructionofWorld-ClassPorts”promulgatedby
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
nineChineseministries.CloselyfollowingthenationaldevelopmentstrategyofGuangdong-HongKong-MacaoGreaterBayArea.WestShenzhenPortZonepromotedhigh-value-addedbusinesswithroutesandsupplychainresourcesandpushedforwardthelaunchofregularnightservicealongtheTongguChannelassoonaspossibletoenhanceitsnavigationcapacityandcompetitiveness.AsforMawanIntelligentPort,twoberths,eachwithacapacityof200,000tons,wouldbeinplaceaftertheconstructioniscompleted,andoneoftheberthswasdeliveredandacceptedon26August,2020.TheCompanywillcontinuetodevelop,atfullstretch,WestShenzhenPortZoneintoaninternationalleadingintelligentportinGuangdong-HongKong-MacaoGreaterBayAreaandtheworld.Intermsofthedevelopmentofoverseashomebaseports,CICTandHIPGadoptedamarket-orientedapproachtoenhanceservicecapabilityandexpandvalue-addedservices.Theystrengthenedthesoundmomentumofgrowth,deepenedbusinesssynergyandcollaboration,improvedoverallplanning,andestablishedcooperationwiththeportsegmentofmajorshippingcompanies,therebyfacilitatingindustrydevelopmentandboostingregionalinfluence.Inrespectofbusinessexpansion,theCompanycompletedtheacquisitionofequityinterestsin8outof10targetterminalsthroughTL,whichistheassociatecompanyoftheCompany,on26March2020.Aftercompletionoftheinvestments,theCompanyexpandeditsportbusinessintoSoutheastAsia,MiddleEast,Europe,MiddleEast,andtheCaribbean,whichfurtheroptimizeditsglobalportnetwork.Inpursuitofinnovativedevelopment,theCompanyproactivelysupportedtheconstructionofintelligentportsandtheportecosystem.Astotheintelligentportdevelopment,thefirstberthoftheMawanIntelligentPortconstructionprojecthasbeendeliveredandaccepted,andhasbecomethefirstautomatedcontainerterminalupgradedandtransformedfromatraditionalmulti-purposeterminalinChina.Theprojectembodiedsmarttechnology,socialandeconomiccontributionsbyincorporatingninemajorintelligentelements,namely“CMChip”,“CMePort”,artificialintelligence,5Gnetworkapplication,Beidousystem,automation,intelligentports,blockchain,andgreenandlow-carbondevelopment.ItwasrecognizedasakeyresearchanddevelopmentprojectbytheMinistryofScienceandTechnologyandwouldbedevelopedintoamodelforintelligenceupgradeoftraditionalterminalsathomeandabroad.Intermsofserviceexpansion,theCompanycreativelydevelopedthecomplexportintheGuangdong-HongKong-MacaoGreaterBayArea.By
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
combiningblockchain,bigdata,artificialintelligence,andcloudcomputing,itestablishedthecustomsandlogisticsplatformfortheGreaterBayAreaviatechnologyempowerment,soastopromotethehealthyandsustainablegrowthofcross-bordertradeintheregion.Fortheincubationofbusinessinnovation,theCompanytookinitiativetocooperatewithleadingInternettechnologycompaniestoexploretheestablishmentoftheopenintelligentportplatform.Regardingtheintegrationbetweenindustryandfinance,itinvestedandestablishedChinaMerchantsPort(Shenzhen)IndustrialInnovationPrivateEquityInvestmentFund(招商港口（深圳）产业创新私募股权投资基金)incollaborationwithChinaMerchantsVenture,thefundofwhichwillcapitalizeontheintegrationbetweentheindustrialandthefinancialsectortopromotetechnologicalinnovationandtransformation,andthenoptimizetheindustryecosystem.Intermsofcomprehensivedevelopment,theCompanytookakeystepforwardintheimplementationofthePPCmodel.FocusingontheDjiboutiZoneandtheHIPGZoneinSriLanka,itfurtherimprovedtheinternationalnetworklayoutandthesynergyamongoverseasbusinesses.Untiltheendof2020,HIPGindustrialparkandDjiboutiInternationalFreeTradeZonehaveenteredintocontractswith26and114enterprisetenants,respectively.Despitetheadverseimpactofthepandemic,itmadegreatprogressintheintroductionofbusinessandinvestment.Intermsofoperationmanagement,theCompany,guidedby“empowerment,professionalismandvalue”andsurroundedbyfivecoreelements,namely“managementstandard,professionalteam,closed-loopprocedure,informationsystemandbenchmarkenhancement”,establishedanoperationmanagementsystemwithsustainablevaluecreation,graduallyformulatedstandardsforallfunctionalmodules,andmanagedtobuildaworld-classvalue-orientedheadquarters.Takingintoaccountthestrategicpositioningofitsvariousbusinesssegments,theCompany,adheringtotheprinciplesofdifferentiationandcontrollablerisksandpushingforwardfull-cycleassetmanagement,procurementmanagement,andperformanceevaluationmechanism,continuouslypromotedthehealthydevelopmentofitssubsidiaries.Besides,focusingonexecutionquality,theCompanyintensifiedthetasksonqualityandefficiencyimprovementandstrivedtoimplementrelatedmeasurestoachievein-depthintegrationbetweenqualityandefficiencyimprovementandstrategicobjectives.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Intermsofcapitaloperation,theCompanypromotedregularizeddual-platformcapitaloperationandadheredtotheworkingconceptofrevitalizingexistingassetsandoptimizingassetstructure.ItintroducedFujianTransportationMaritimeSilkRoadInvestmentandManagementCo.Limited(福建省交通海丝投资管理有限公司)asthestrategicinvestorofHIPG,withaviewtotappingintosynergybyoptimizingtheassetprofileandthecorporategovernancestructure.Followingitsstrategicgoals,itutilizedthedualplatformandrealizedgrowthinassetsizeandprofitvolumethroughconsolidatingthefinancialstatementsofNingboDaxieandoptimizingthetaxstructureandliabilitymanagement.Intermsofmarketingandcommerce,theCompanycontinuedtoorganizeandmakeplansofbusinesspromotionandmarketingcampaignsfordomesticandinternationalcustomers.Duringthepandemic,itmaintainedproactivecommunicationwithcustomerstoensuresmoothbusinessoperation.LeveragingitsterminalresourcesacrossNorthernandSouthernChina,itoptimizedtheroutenetworkandbuilttheboutiqueshippingroutes.ItalsoparticipatedinmajoreventssuchastheChinaInternationalImportExpoandtheChinaMarineEconomyExpotobuildthebrandimageofCMPort.IICoreBusinessAnalysis
1.OverviewChangesinkeyfinancialindicatorsintheReportingPeriodareasfollows:
Unit:RMB
| Item | 2020 | 2019 | Change(%) | Reasonforthechange |
| Operatingrevenue | 12,618,529,996.02 | 12,123,829,423.74 | 4.08% | Theaddingofentitiestotheconsolidatedfinancialstatementsforthecurrentyear |
| Costofsales | 7,873,749,854.85 | 7,648,920,919.71 | 2.94% | Theaddingofentitiestotheconsolidatedfinancialstatementsforthecurrentyear |
| Administrativeexpense | 1,584,882,935.02 | 1,509,520,581.66 | 4.99% | Theaddingofentitiestotheconsolidatedfinancialstatementsforthecurrentyear |
| Financecosts | 1,232,729,624.82 | 1,936,269,737.53 | -36.33% | Decreaseinfinancingcostsandincreaseinexchangegainsinthecurrentyear |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Assetdisposalincome | 1,489,206,502.32 | 4,794,562,782.79 | -68.94% | Transferoflandtothegovernmentinlastyear |
| Netcashgeneratedfrom/usedinoperatingactivities | 5,495,800,917.01 | 5,501,873,415.94 | -0.11% | - |
2.RevenueandCostAnalysis
(1)BreakdownofOperatingRevenue
Unit:RMB
| 2020 | 2019 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 12,618,529,996.02 | 100% | 12,123,829,423.74 | 100% | 4.08% |
| Byoperatingdivision | |||||
| Portoperations | 12,047,724,502.59 | 95.48% | 11,547,072,185.86 | 95.24% | 4.34% |
| Bondedlogisticsservice | 417,391,441.86 | 3.31% | 411,410,069.19 | 3.39% | 1.45% |
| Propertydevelopmentandinvestment | 153,414,051.57 | 1.22% | 165,347,168.69 | 1.36% | -7.22% |
| Byoperatingsegment | |||||
| MainlandChina,HongKongandTaiwan | 9,117,570,900.78 | 72.26% | 8,872,027,132.24 | 73.18% | 2.77% |
| Othercountriesandregions | 3,500,959,095.24 | 27.74% | 3,251,802,291.50 | 26.82% | 7.66% |
(2)OperatingDivision,ProductCategoryorOperatingSegmentContributingover10%ofOperatingRevenueorOperatingProfit
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Portoperations | 12,047,724,502.59 | 7,407,129,837.37 | 38.52% | 4.34% | 3.08% | 0.75% |
| Byoperatingsegment | ||||||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| MainlandChina,HongKongandTaiwan | 9,117,570,900.78 | 6,080,095,490.47 | 33.31% | 2.77% | 1.87% | 0.59% |
| Othercountriesandregions | 3,500,959,095.24 | 1,793,654,364.38 | 48.77% | 7.66% | 6.73% | 0.45% |
CorebusinessdataoftheprioryearrestatedaccordingtothechangedstatisticalcaliberfortheReportingPeriod:
□Applicable√Notapplicable
(3)WhetherRevenuefromPhysicalSalesIsHigherthanServiceRevenue
□Yes√No
(4)ExecutionProgressofMajorSignedSalesContractsintheReportingPeriod
□Applicable√Notapplicable
(5)BreakdownofCostofSales
Unit:RMB
| Operatingdivision | Item | 2020 | 2019 | Change(%) | ||
| Costofsales | As%oftotalcostofsales(%) | Costofsales | As%oftotalcostofsales(%) | |||
| Portoperations | Loadingandunloadingservices | 7,407,129,837.37 | 94.07% | 7,185,667,723.72 | 93.94% | 3.08% |
| Bondedlogisticsservice | Logisticsservice | 245,350,697.54 | 3.12% | 240,230,706.61 | 3.14% | 2.13% |
| Propertydevelopmentandinvestment | Properties | 221,269,319.94 | 2.81% | 223,022,489.38 | 2.92% | -0.79% |
| Total | 7,873,749,854.85 | 100.00% | 7,648,920,919.71 | 100.00% | 2.94% | |
(6)ChangesintheScopeofConsolidatedFinancialStatementsfortheReportingPeriod
√Yes□NoNingboDaxieChinaMerchantsInternationalContainerTerminalCo.,Ltd.(CMICT)wasaddedtotheconsolidatedfinancialstatementsoftheCompanyfortheReportingPeriodduetothebusiness
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
combinationoftheCompanyandCMICTwhichwerenotundercommoncontrol.
(7)MajorChangestotheBusinessScopeorProductorServiceRangeintheReportingPeriod
□Applicable√Notapplicable
(8)MajorCustomersandSuppliersMajorcustomers:
| Totalsalestotopfivecustomers(RMB) | 3,455,856,420.54 |
| Totalsalestotopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 27.39% |
| Totalsalestorelatedpartiesamongtopfivecustomersas%oftotalsalesoftheReportingPeriod(%) | 2.71% |
Topfivecustomers:
| No. | Customer | SalesrevenuecontributedfortheReportingPeriod(RMB) | As%oftotalsalesrevenue(%) |
| 1 | CustomerA | 1,589,271,780.94 | 12.59% |
| 2 | CustomerB | 617,460,483.80 | 4.89% |
| 3 | CustomerC | 561,057,263.91 | 4.45% |
| 4 | CustomerD | 346,126,608.76 | 2.74% |
| 5 | CustomerE | 341,940,283.12 | 2.71% |
| Total | -- | 3,455,856,420.54 | 27.39% |
Otherinformationaboutmajorcustomers:
ThecompanyhasanassociatedrelationshipwithChinaCOSCOShippingGroupCo.,Ltd.amongthetopfivecustomers.FuGangfeng,theoriginalchairmanofthecompany(resignedasthechairmanofthecompanyonJanuary31,2020,lessthan12monthsafterhisresignation)servedasChinaDirectorandGeneralManagerofOceanShippingGroupCo.,Ltd.Exceptfortheabove-mentionedrelatedrelationships,thecompanyanditsdirectors,supervisors,seniormanagers,coretechnicalpersonnel,shareholdersholdingmorethan5%ofthesharesandotherrelatedpartieshavenodirectorindirectinterestinChinaCOSCOShippingGroupCo.,Ltd.Majorsuppliers:
| Totalpurchasesfromtopfivesuppliers(RMB) | 914,089,834.55 |
| Totalpurchasesfromtopfivesuppliersas%oftotalpurchasesoftheReportingPeriod(%) | 17.02% |
| Totalpurchasesfromrelatedpartiesamongtopfivesuppliersas%oftotalpurchasesofthe | 0.00% |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Topfivesuppliers:
ReportingPeriod(%)
No.
| No. | Supplier | PurchaseintheReportingPeriod(RMB) | As%oftotalpurchases(%) |
| 1 | SupplierA | 331,650,786.48 | 6.17% |
| 2 | SupplierB | 180,249,953.38 | 3.36% |
| 3 | SupplierC | 169,857,064.55 | 3.16% |
| 4 | SupplierD | 119,928,727.26 | 2.23% |
| 5 | SupplierE | 112,403,302.88 | 2.09% |
| Total | -- | 914,089,834.55 | 17.02% |
Otherinformationaboutmajorsuppliers:
□Applicable√Notapplicable
3.Expense
Unit:RMB
| 2020 | 2019 | Change(%) | Reasonforanysignificantchange | |
| Administrativeexpense | 1,584,882,935.02 | 1,509,520,581.66 | 4.99% | - |
| Financecosts | 1,232,729,624.82 | 1,936,269,737.53 | -36.33% | Increaseinexchangegainsasaresultofexchangeratechanges,andincreaseininterestincomeduetothenewUSdollarloantoTL |
| R&Dexpense | 156,024,113.54 | 123,853,344.29 | 25.97% | HigherexpensesonvariousR&Dprojects |
4.R&DInvestmentsIn2020,theCompanymadeactiveeffortstopromoteintelligentportsandbuildaportecosystem.AsthefirstautomatedterminalinChinawhichisupgradedfromatraditionalbulkcargoterminal,MawanIntelligentPorthasseenitsBerthNo.3successfullydelivered.Beingacombinationofnineintelligentfactors,namelyintelligenttechnologies,socialandeconomicbenefits,theintegrated“CMCore”,“CMePort”,artificialintelligence,theapplicationof5Gnetwork,theBeidouSystem,automation,intelligentport,andblockchain,aswellasgreenandlow-carbondevelopment,theportisconsideredamodelfortheautomationoftraditionalportsathomeandabroad.Intermsofserviceextension,theinnovativebusinessmodelofcomplexportislaunchedfortheGuangdong-Hong
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Kong-MacaoGreaterBayArea.Throughthecomprehensiveapplicationoftechnologiessuchasblockchain,bigdata,artificialintelligenceandcloudcomputing,aninnovativecustomsclearancelogisticsplatformisputinplacefortheGreaterBayAreatofacilitatethehealthyandsustainabledevelopmentofcross-boardtradeinthearea.Withrespecttobusinessinnovationanddevelopment,theCompanyactivelycooperateswithInternettechnologytycoonstoexploretheconstructionofanopenintelligentportplatform.DetailsaboutR&Dinvestments:
| 2020 | 2019 | Change(%) | |
| NumberofR&Dpersonnel | 874 | 611 | 43.04% |
| R&Dpersonnelas%oftotalemployees | 6.06% | 4.29% | 1.77% |
| R&Dinvestments(RMB) | 209,496,430.84 | 155,131,267.35 | 35.04% |
| R&Dinvestmentsas%ofoperatingrevenue | 1.66% | 1.28% | 0.38% |
| CapitalizedR&Dinvestments(RMB) | 53,472,317.30 | 31,277,923.06 | 70.96% |
| CapitalizedR&Dinvestmentsas%oftotalR&Dinvestments | 25.52% | 20.16% | 5.36% |
ReasonsforanysignificantYoYchangeinthepercentageofR&Dinvestmentsinoperatingrevenue:
□Applicable√NotapplicableReasonforanysharpvariationinthepercentageofcapitalizedR&Dinvestmentsandrationale:
□Applicable√Notapplicable
5.CashFlows
Unit:RMB
| Item | 2020 | 2019 | Change(%) |
| Subtotalofcashgeneratedfromoperatingactivities | 13,560,142,641.73 | 13,483,810,093.83 | 0.57% |
| Subtotalofcashusedinoperatingactivities | 8,064,341,724.72 | 7,981,936,677.89 | 1.03% |
| Netcashgeneratedfrom/usedinoperatingactivities | 5,495,800,917.01 | 5,501,873,415.94 | -0.11% |
| Subtotalofcashgeneratedfrominvestingactivities | 12,531,582,996.10 | 11,616,175,588.24 | 7.88% |
| Subtotalofcashusedininvesting | 19,424,700,092.60 | 13,553,166,249.84 | 43.32% |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| activities | |||
| Netcashgeneratedfrom/usedininvestingactivities | -6,893,117,096.50 | -1,936,990,661.60 | -255.87% |
| Subtotalofcashgeneratedfromfinancingactivities | 37,578,675,786.12 | 18,233,144,655.78 | 106.10% |
| Subtotalofcashusedinfinancingactivities | 32,184,203,323.64 | 19,466,847,993.77 | 65.33% |
| Netcashgeneratedfrom/usedinfinancingactivities | 5,394,472,462.48 | -1,233,703,337.99 | 537.26% |
| Netincreaseincashandcashequivalents | 4,057,461,307.33 | 2,340,876,491.12 | 73.33% |
Explanationofwhyanyofthedataabovevariessignificantlyonayear-on-yearbasis:
Subtotalofcashusedininvestingactivitiesrose43.32%year-on-year,primarilydrivenbythepaymentforthemandatoryconvertiblebondsofTLandanincreaseininvestmentsinothercompanies.Netcashgeneratedfrominvestingactivitiesdeclined255.87%year-on-year,primarilydrivenbyayear-on-yearincreaseincashusedininvestingactivities.Subtotalofcashgeneratedfromfinancingactivitiesrose106.10%year-on-year,primarilydrivenbychangesinthefinancingsforinvestmentprojects.Subtotalofcashusedinfinancingactivitiesrose65.33%year-on-year,primarilydrivenbyayear-on-yearincreaseincashrepaymentsofborrowings.Netcashgeneratedfromfinancingactivitiesrose537.26%year-on-year,primarilydrivenbyamuchfastergrowthincashgeneratedfromfinancingactivitiesthanincashusedinfinancingactivities.Thenetincreaseofcashandcashequivalentsrose73.33%year-on-year,primarilydrivenbythecomprehensiveinfluenceofeachactivityofcashflows.Explanationofwhynetcashgeneratedfrom/usedinoperatingactivitiesvariessignificantlyfromnetprofitoftheReportingPeriod:
□Applicable√NotapplicableIII.AnalysisofNon-mainBusinesses
Unit:RMB
| Amount | As%of | Mainsource/reason | Exceptionalorrecurrent |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| totalprofit | ||||
| Investmentincome | 4,905,975,438.22 | 72.13% | Shareoftheprofitofjointventuresandassociates,mainlyShanghaiPort | Recurrent |
| Gain/lossondisposalofassets | 1,489,206,502.32 | 21.90% | Compensationincomeoflandreadjustment | Exceptional |
IV.AnalysisofAssetsandLiabilities
1.SignificantChangesinAssetCompositionIndicatewhethertheCompanyhasadoptedthenewaccountingstandardsgoverningrevenueandleasessince2020andrestatedthebeginningamountsofrelevantfinancialstatementlineitemsintheyear.
□Applicable√Notapplicable
Unit:RMB
| 31December2020 | 1January2020 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 11,791,424,734.63 | 7.00% | 7,734,948,210.26 | 4.94% | 2.06% | Fundspooledforprojectpaymentin2021andrepaymentofbankborrowingsinthebeginningoftheyear |
| Otherreceivables | 3,557,195,461.26 | 2.11% | 2,129,378,252.50 | 1.36% | 0.75% | Landcompensation |
| Othercurrentassets | 433,666,201.42 | 0.26% | 2,298,792,661.70 | 1.47% | -1.21% | Maturityofstructureddeposit |
| Long-termreceivables | 3,887,949,993.10 | 2.31% | 1,098,831,799.90 | 0.70% | 1.61% | Newloanfinancingforproject |
| Long-termequityinvestments | 66,231,923,423.45 | 39.30% | 57,916,539,383.26 | 36.96% | 2.34% | Acquisitionof8terminalsfromCMA,investmentinNortheastAsiaInvestment,andconsolidationofCMICT |
| Othernon-currentfinancialassets | 910,807,452.56 | 0.54% | 2,385,363,537.39 | 1.52% | -0.98% | ConsolidationofCMICTinthecurrentyear |
| Constructioninprogress | 5,381,430,606.18 | 3.19% | 6,334,141,441.88 | 4.04% | -0.85% | TransferoftheGuangdong-MacauPhaseIIprojectofShantouPorttofixedassets |
| Goodwill | 6,675,939,930.13 | 3.96% | 8,023,659,694.81 | 5.12% | -1.16% | Goodwillimpairmentallowances |
| Currentportionofnon-currentliabilities | 3,564,465,137.37 | 2.11% | 6,104,339,856.79 | 3.90% | -1.79% | Repaymentofmatureborrowings |
| Othercurrentliabilities | 2,383,668,985.94 | 1.41% | 885,956,581.63 | 0.57% | 0.84% | Issueofshort-termcommercialpaperstoraisefinancings |
| Long-term | 1,228,461,573.69 | 0.73% | 1,935,245,003.21 | 1.24% | -0.51% | Decreaseinrebatesof |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| payables | portconstructionfees |
2.AssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangeschargedtoequity | Impair-mentallowancefortheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingbalance |
| Financialassets | ||||||||
| Held-for-tradingfinancialassets(excludingderivativefinancialassets) | 2,385,363,537.39 | 269,099,721.85 | - | - | 2,625,398,611.55 | -310,000,000.00 | -3,208,888,969.64 | 1,760,972,901.15 |
| Otherequityinstrumentinvestment | 163,561,272.00 | - | 216,691.00 | - | - | - | 17,689,094.74 | 181,467,057.74 |
| Subtotaloffinancialassets | 2,548,924,809.39 | 269,099,721.85 | 216,691.00 | - | 2,625,398,611.55 | -310,000,000.00 | -3,191,199,874.90 | 1,942,439,958.89 |
| Receivablesfinancing | 260,760,537.45 | - | - | - | - | - | -43,310,571.04 | 217,449,966.41 |
| Totaloftheabove | 2,809,685,346.84 | 269,099,721.85 | 216,691.00 | - | 2,625,398,611.55 | -310,000,000.00 | -3,234,510,445.94 | 2,159,889,925.30 |
| Financialliabilities | 4,059,686,208.87 | -680,381,987.28 | - | - | - | -741,328,044.50 | 250,419,464.44 | 2,888,395,641.53 |
Detailsofotherchanges:
N/ASignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasatthePeriod-EndTherestrictedmonetaryassetswereRMB11,528,570.90ofsecuritydeposits.ThecarryingvalueoffixedassetsascollateralforbankloanswasRMB341,931,071.09.ThecarryingvalueofconstructioninprogressascollateralforbankloanswasRMB43,751,101.60;andthecarryingvalueofintangibleassetsascollateralforbankloanswasRMB218,825,477.36.ThecarryingvalueofequitiesandinterestscollateralforbankloanswasRMB2,485,702,767.56.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
V.InvestmentsMade
1.TotalInvestmentAmount
| Amountin2020(RMB) | Amountin2019(RMB) | Change(%) | |
| Equityinvestment | 5,706,331,715.60 | 7,898,674,384.09 | -27.76% |
| Non-equityinvestment | 2,728,598,026.38 | 3,515,540,735.97 | -22.38% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
Unit:RMB’0,000
| NameofInvestee | Principalactivity | Wayofinvestment | Investmentamount | TheCompany’sinterest | Fundingsource | Jointinvestor | Termofinvestment | Typeofproducts | Investmentprogressasatthebalancesheetdate | Anticipatedincome | ReturnoninvestmentintheReportingPeriod | Anylegalmatterinvolved | Disclosuredate(ifany) | Indextodisclosedinformation(ifany) |
| NortheastAsiaInvestment | Investmentandassetmanagement;landdevelopmentservices;industrialparkmanagementservices;supplyofpower,heatingandwater;engineeringmanagementservices;propertymanagement;plantleases;meeting,exhibitionandrelatedservices;businessmanagementconsultingservices.(whereanadministrativepermitisrequiredaccordingtolaw,itmustbeobtainedbeforeoperation.) | Incorporated | 100,000 | 22.22% | Self-funded | LiaoningPortGroupandCMSK | Termofoperation:50years,renewableuponexpiry | Equity | Completed | 0.00 | 778.63 | No | 7Apr.2020 | www.cninfo.com.cn(AnnouncementNo.2020-025) |
| CMPort(Shenzhen)IndustrialInnovationPrivateEquityInvestmentFundPartnership(LimitedPartnership) | Investinginequitiesofnon-listedandlistedport-relatedcompanieswithrespecttotechnologyinnovation,businessmodelinnovation,tradedigitalization,etc. | Incorporated | 30,000 | 49.99% | Self-funded | ChinaMerchantsVentureandChinaMerchantsVentureFund | TermofFund:7years | Equity | Ongoing | 0.00 | 0.00 | No | 1Dec.2020 | www.cninfo.com.cn(AnnouncementNo.2020-085) |
| Total | -- | -- | 130,000 | -- | -- | -- | -- | -- | -- | 0.00 | 778.63 | -- | -- | -- |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
Unit:RMB
| Item | Wayofinvestment | Fixedassetsinvestmentornot | Industryinvolved | InputamountintheReportingPeriod | Accumulativeactualinputamountasoftheperiod-end | Capitalresources | Progress | Estimatedreturnoninvestment | Accumulativerealizedrevenuesasoftheperiod-end | Reasonfornotreachingthescheduleandanticipatedincome |
| HaixingHarbor1#-4#berthsrenovationproject—waterengineering | Self-built | Yes | Supportactivitiesforwatertransportation | 485,237,057.61 | 1,544,226,816.60 | Self-fundedandloan-funded | 54.16% | 0.00 | 0.00 | N/A |
| HIPGcontainerandoilterminalsandtankzonerenovationproject | Self-built | Yes | Supportactivitiesforwatertransportation | 143,384,534.55 | 1,550,440,336.85 | Self-fundedandloan-funded | 56.00% | 0.00 | 0.00 | N/A |
| MachongPort2#and3#berthsandbulkgrainwarehousephaseIIIproject | Self-built | Yes | Supportactivitiesforwatertransportation | 165,851,858.79 | 487,050,717.25 | Self-fundedandloan-funded | 78.56% | 0.00 | 0.00 | N/A |
| ZhanjiangPortXiashanPortGeneralWharf | Self-built | Yes | Supportactivitiesforwatertransportation | 230,330,096.08 | 464,639,005.10 | Self-fundedandloan-funded | 62.98% | 0.00 | 0.00 | N/A |
| GeneralCargoprojectofZhanjiangPortDonghaiIsland | Self-built | Yes | Supportactivitiesforwatertransportation | 112,037,664.03 | 366,583,393.31 | Self-fundedandloan-funded | 40.49% | 0.00 | 0.00 | N/A |
| Total | -- | -- | -- | 1,136,841,211.06 | 4,412,940,269.11 | -- | -- | 0.00 | 0.00 | -- |
4.FinancialInvestments
(1)SecuritiesInvestments
Unit:RMB
| Varietyofsecurities | Codeofsecurities | Nameofsecurities | Initialinvestmentcost | Accountingmeasurementmo | Beginningcarryingvalue | Gain/lossonfairvaluechangesintheReportingPeriod | Cumulativefairvaluechangesrecordedintoequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Gain/lossintheReportingPeriod | Endingcarryingvalue | Accountingitem | Capitalresources |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| del | |||||||||||||
| Domestic/overseasStock | 601018 | NingboPort | 592,183,095.14 | Fairvaluemethod | 1,548,914,671.20 | 183,843,813.95 | - | 1,465,398,611.55 | - | 52,532,104.65 | - | Tradingfinancialassets | Self-owned |
| Domestic/overseasStock | 06198 | QingdaoPort | 124,405,138.80 | Fairvaluemethod | 204,263,917.11 | -27,141,455.82 | - | - | - | 8,036,071.58 | 166,225,139.77 | Tradingfinancialassets | Self-owned |
| Domestic/overseasStock | 601298 | QingdaoPort | 331,404,250.30 | Fairvaluemethod | 616,000,000.00 | 104,160,000.00 | - | - | - | 22,433,600.00 | 720,160,000.00 | Tradingfinancialassets | Self-owned |
| Domestic/overseasStock | 600377 | JiangsuExpressway | 1,120,000.00 | Fairvaluemethod | 11,220,000.00 | - | -324,900.00 | - | - | 460,000.00 | 10,786,800.00 | Otherequityinstrumentinvestment | Self-owned |
| Domestic/overseasStock | 400032 | PetrochemicalA1 | 3,500,000.00 | Fairvaluemethod | 382,200.00 | - | - | - | - | - | 382,200.00 | Otherequityinstrumentinvestment | Self-owned |
| Domestic/overseasStock | 400009 | GuangJian1 | 27,500.00 | Fairvaluemethod | 17,000.00 | - | - | - | - | - | 17,000.00 | Otherequityinstrumentinvestment | Self-owned |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Total | 1,052,639,984.24 | -- | 2,380,797,788.31 | 260,862,358.13 | -324,900.00 | 1,465,398,611.55 | 0.00 | 83,461,776.23 | 897,571,139.77 | -- | -- |
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√Notapplicable
5.UseofFundsRaised
(1)OverallUsageofFundsRaised
Unit:RMB’0,000
| Year | Wayofraising | Totalfundsraised | TotalfundsusedintheCurrentPeriod | Accumulativefundused | Totalfundswithusagechanged | Accumulativefundswithusagechanged | Proportionofaccumulativefundswithusagechanged | Totalunusedfunds | Theusageanddestinationofunusedfunds | Amountoffundsraisedidleforovertwoyears |
| 2019 | Privateplacement | 221,282.91 | 307,473.46 | 520,882.19 | 0 | 18,599.73 | 8.41% | 88,478.69 | Depositedinfundsraisingaccount | 0 |
| Total | -- | 221,282.91 | 307,473.46 | 520,882.19 | 0 | 18,599.73 | 8.41% | 88,478.69 | -- | 0 |
| Explanationofoverallusageoffundsraised | ||||||||||
| Asapprovedinthedocument“ZJXK[2018]No.1750”ofCSRC,CMPortissued128,952,746RMBordinaryshares(AShare)atRMB17.16persharethroughprivateplacementonShenzhenStockExchange.ThetotalfundraisedwasRMB2,212,829,121.36,andafterdeductingfeesassociatedwiththeissuanceofshares,thenetfundraisedwasRMB2,185,997,340.15.Asof23October2019,theaforementionedfundwasfullypaid,whichwasverifiedbyBDOChinaShuLunPanCertifiedPublicAccountsLLPwithacapitalverificationreport(XKSBZ[2019]No.ZI10673).Asof31December2020,atotalofRMB5,208,821,925.44intheCompany’sfundaccounthadbeenused,including:(1)RMB582,722,414.48forreplacingtheself-fundingspentonfundraisinginvestmentprojectsinadvance;(2)RMB749,267,729.75asraisedfundinvestedafterthefundwaspaid,includinganinvestmentofRMB749,267,729.75intheHaixingHarborrenovationproject(PhaseII)(2019:RMB324,533,139.29;2020:RMB424,734,590.46);(3)RMB26,831,781.21forpayingissuefees;(4)RMB3,850,000,000.00forpurchasingstructureddeposits(2019:RMB1,200,000,000.00;2020:RMB2,650,000,000.00).Asof31December2020,thenetamountofinterestincomegeneratedfromthefundaccountisRMB1,938,427.36afterdeductingsurcharges(2019:RMB795,775.14;2020:RMB1,142,652.22);theamountofstructureddepositsredeemedisRMB3,050,000,000.00(2019:RMB100,000,000.00;2020:RMB2,950,000,000.00);theamountofincomefromstructureddepositsisRMB28,841,232.88(2019:RMB302,465.75;2020:RMB28,538,767.13);asof31December2020,thebalanceamountdepositedinthefund-raisingaccountisRMB884,786,856.16. | ||||||||||
(2)CommitmentProjectsofFundRaised
Unit:RMB’0,000
| Committedinvestmentprojectandsuperraisefundarrangement | Changedornot(includingpartialchanges) | Committedinvestmentamount | Investmentamountafteradjustment(1) | InvestmentamountintheReportingPeriod | Accumulativeinvestmentamountasoftheperiod-end(2) | Investmentscheduleastheperiod-end(3)＝(2)/(1) | Dateofreachingintendeduseoftheproject | RealizedincomeintheReportingPeriod | Whetherreachedanticipatedincome | Whetheroccurredsignificantchangesinprojectfeasibility |
| Committedinvestmentproject | ||||||||||
| SupportingtransformationprojectofHanPort | Yes | 18,599.73 | - | - | - | - | - | N/A(Note1) | No | No |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| TransformationprojectofHaixingHarbor(PhaseII) | No | 200,000 | 218,599.73 | 42,473.46 | 133,199.01 | 60.93% | 30June2021 | N/A(Note2) | No | No |
| Subtotalofcommittedinvestmentproject | -- | 218,599.73 | 218,599.73 | 42,473.46 | 133,199.01 | -- | -- | -- | -- | -- |
| Superraisefundarrangement | ||||||||||
| N/A | ||||||||||
| Subtotalofsuperraisefundarrangement | -- | - | - | - | - | -- | -- | 0 | -- | -- |
| Total | -- | 218,599.73 | 218,599.73 | 42,473.46 | 133,199.01 | -- | -- | 0 | -- | -- |
| Conditionandreasonfornotreachingthescheduleandanticipatedincome(byspecificitems) | Note1:BasedontheestimatedconstructionprogressofsupportingtransformationprojectofHanPort,US$79millionandUSD281millionwereplannedtobeusedtobuildanoilwharfandatankarearespectivelyin2019and2020;USD12.48millionand179.6millionwereplannedtobeusedtoacquirequaycranes,yardcranesandotheroperatingequipmentrespectivelyin2019and2020.Thefundswereestimatedtobefullyspentby2020.Sofartheprojecthasbeendelayed.Inordertofurtheroptimizeitsinternalresourceallocation,increasetheutilizationefficiencyoffundsandsafeguardshareholders’rightsandinterests,theCompanyusedRMB185,997,300ofthefundraisedintransformationprojectofHaixingHarbor(PhaseII).Asof31December2020,atotalofRMB0hadbeeninvestedinsupportingtransformationprojectofHanPort.2.TransformationprojectofHaixingHarbor(PhaseII)iscurrentlyunderconstructionandthushasnotgeneratedincome.Note2:Duetoadjustmentstogovernmentplanning,thedelayeddeliveryoftheXiaoyetiansite,theCOVID-19pandemic,changestoengineeringdesign,etc.sincethestartofitsconstruction,thedateofreachingtheintendeduseoftheTransformationprojectofHaixingHarbor(PhaseII)hasbeenadjustedfromQ42020toQ22021.Thisprojectiscurrentlyunderconstructionandthushasnotgeneratedincome. | |||||||||
| Notesofconditionofsignificantchangesoccurredinprojectfeasibility | N/A | |||||||||
| Amount,usageandscheduleofsuperraisefund | N/A | |||||||||
| Changesinimplementationaddressofinvestmentproject | N/A | |||||||||
| Adjustmentofimplementationmodeofinvestmentproject | N/A | |||||||||
| Upfrontinvestmentandtransferofinvestmentproject | BDOChinaShuLunPanCertifiedPublicAccountantsLLPverifiedtheupfrontinvestmentwithself-pooledfundsinraisedfundsinvestmentprojects,andissuedtheXKSSBZ[2019]No.10423TheAuditReportontheUpfrontInvestmentwithSelf-PooledFundsinraisedFundsInvestmentProjectofShenzhenHaixingHarborDevelopmentCo.,Ltd.dated12November2019.Asof31October2019,theupfrontinvestmentwithself-pooledfundsinraisedfundsinvestmentprojectsamountedtoRMB582.7224million.InDecember2019,pursuanttotheProposalontheSwapofRaisedFundsandUpfrontInvestmentofSelf-PooledFundsapprovedatthe11thExtraordinaryMeetingofthe9thBoardofDirectorsin2019,theCompanyhascompletedtheswapoftheaforesaidfunds. | |||||||||
| Idlefundsupplementingthecurrentcapitaltemporarily | N/A | |||||||||
| Amountofsurplusinprojectimplementationandthereasons | N/A | |||||||||
| Usageanddestinationofunusedfunds | Unusedfundwasdepositedinthefund-raisingaccount. | |||||||||
| Problemsincurredinfundusinganddisclosureorothercondition | On22November2019,the11thExtraordinaryMeetingofthe9thBoardofDirectorsin2019reviewedandapprovedtheProposalontheImplementationofCashManagementbytheUsageofIdleRaisedFunds,whichagreedtheCompanytocarryoutcashmanagementbyusingidlefundsofnomorethanRMB1.2billion.Thequotawasvalidwithin12monthsofthedatewhenthesaidproposalwasapprovedbytheBoard.Andthecashmanagementamountwouldbereturnedtotheaccountofraisedfundsupontheexpiry. | |||||||||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
(3)ChangesinItemsofFundsRaised
Unit:RMB’0,000
On30November2020,theSecondExtraordinaryMeetingofthe10
th
BoardofDirectorsin2020andtheSecondExtraordinaryMeetingofthe10
thSupervisoryCommitteein2020reviewedandapprovedtheProposalontheImplementationofCashManagementbytheUsageofIdleRaisedFunds,whichagreedtheCompanytocarryoutcashmanagementbyusingidlefundsofnomorethanRMB800million.Thequotawasvalidwithin12monthsofthedatewhenthesaidproposalwasapprovedbytheBoard.Andthecashmanagementamountwouldbereturnedtotheaccountofraisedfundsupontheexpiry.Asof31December2020,theCompanyhaspurchasedstructureddepositsofRMB3,850,000,000.00(2019:
RMB1,200,000,000.00;2020:RMB2,650,000,000.00)atCMBShenzhenNewTimesSub-branchwithitstemporarilyidleraisedfunds,amongwhichRMB3,050,000,000.00hasbeenredeemed(incomefor2019:RMB302,465.75;incomefor2020:
RMB28,538,767.13),andtheresidualRMB800,000,000.00wasstilldepositedinthestructureddepositsaccount.
Itemsafterchanges
| Itemsafterchanges | Correspondingoriginalcommitteditems | Amountofplannedfundsinvestedafterchanges(1) | ActualinvestmentamountintheReportingPeriod | Accumulativeinvestmentamountastheperiod-end(2) | Investmentscheduleastheperiod-end(3)=(2)/(1) | Dateofreachingintendeduseoftheproject | RealizedincomeintheReportingPeriod | Whetherreachedanticipatedincome | Whetheroccurredsignificantchangesinprojectfeasibility |
| TransformationprojectofHaixingHarbor(PhaseII) | SupportingtransformationprojectofHanPort | 218,599.73 | 42,473.46 | 133,199.01 | 60.93% | 30June2021 | 0 | No | No |
| Total | -- | 218,599.73 | 42,473.46 | 133,199.01 | -- | -- | 0 | -- | -- |
| Notesofreasonsforchanges,decision-makingproceduresandinformationdisclosure(byspecificitems) | TheusageofunusedfundofRMB185.9973millioninsupportingtransformationprojectofHIPGwaschangedtotheconstructionoftransformationprojectofHaixingHarbor(PhaseII).ThemattersofpartialchangesinfundraisedinvestmenthasbeenapprovedbytheProposalonPartialChangesinUsageofFundRaised,whichwasreviewedandapprovedonthe11thExtraordinaryMeetingofthe9thBoardofDirectorsin2019on22November2019.TheAnnouncementofPartialChangesinUsageofFundRaised(AnnouncementNo.2019-85)hasbeendisclosedonwebsitewww.cninfo.com.cnon26November2019.Asof31December2020,theamountwithusagechangedwasRMB185.9973million. | ||||||||
| Conditionandreasonfornotreachingthescheduleandanticipatedincome(byspecificitems) | Duetoadjustmentsofgovernmentplanning,thedelayeddeliveryoftheXiaoyetiansite,theCOVID-19pandemic,changestoengineeringdesign,etc.sincethestartofitsconstruction,thedateofreachingtheintendeduseoftheTransformationprojectofHaixingHarbor(PhaseII)hasbeenadjustedfromQ42020toQ22021.Thisprojectiscurrentlyunderconstructionandthushasnotgeneratedincome. | ||||||||
| Notesofconditionofsignificantchangesoccurredinprojectfeasibilityafterchanges | N/A | ||||||||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
VI.SaleofMajorAssetsandEquityInterests
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInterests
□Applicable√NotapplicableVII.MajorSubsidiariesMajorfully/majority-ownedsubsidiariesandthoseminority-ownedsubsidiarieswithanover10%effectontheCompany’snetprofit
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ChinaMerchantsPortHoldingsCompanyLimited | Subsidiary | Portbusiness,bondedlogisticsandpropertyinvestment | 42,521,339,893.42(HKD) | 140,050,855,725.44 | 92,907,480,373.35 | 7,956,928,250.59 | 5,984,205,211.47 | 5,064,412,321.79 |
| ShanghaiInternationalPort(Group)Co.,Ltd. | Jointstockcompany | Businessrelatedtoport,containerandterminal | 23,173,674,650.00 | 155,924,749,976.52 | 95,979,599,650.80 | 26,119,460,820.07 | 10,586,267,534.26 | 9,183,403,328.66 |
SubsidiariesobtainedordisposedintheReportingPeriod
| Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
| NingboDaxieChinaMerchantsInternationalContainerTerminalCo.,Ltd. | Businesscombinationnotunderthesamecontrol | ControlrealizationtoCMICTandinvestmentincomerecognizedoflong-termequityinvestmentatfairvalueundertheoriginalequitymethod |
NotesofmajorholdingcompaniesandjointstockcompaniesThereisnoinformationonmajorholdingcompaniesandjointstockcompaniesfortheCompanytodiscloseduringtheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
VIII.StructuredBodiesControlledbytheCompany?Applicable√NotapplicableIX.OutlookfortheFutureDevelopmentoftheCompany
1.LayoutandtrendsoftheindustryLookinginto2021,thepandemicremainsthemostsignificantuncertainty.Nonetheless,withthegradualrolloutofvaccines,theeffectofthepandemiconglobaleconomicandsocialactivitieswilldiminishandtheworld’seconomyisexpectedtofullyrecover.Astheeconomyandtradereturntonormal,theeconomicgrowthofdevelopedeconomieswillincreasesteadilyin2021.SubjecttoCOVID-19vaccinedistributionprogress,emergingmarketsanddevelopingeconomiesfaceuncertaintiesineconomicdevelopment.Thesocialandpoliticalturmoilincertainemergingeconomieswilldragdowneconomicgrowth,notablyinregionssuchastheMiddleEastandNorthAfrica.InJanuary2021,theIMFpredictedtheglobaleconomytogrowby5.5%in2021,representinganincreaseof9.0%year-on-year.Inparticular,thedevelopedeconomieswillgrowat
4.3%,up9.2percentagepointascomparedtothatof2020;andtheemergingmarketsanddevelopingeconomieswillgrowat6.3%,up8.7percentagepointascomparedtothatof2020.Globaltradevolume(includinggoodsandservices)willgrowby8.1%,up17.7percentagepointsascomparedtothatof2020.Theyear2021followsChina’scompletionofbuildingamoderatelyprosperoussocietyin2020andmarksthefirstyearofthe“14thFive-Year”Planand2035Vision.Chinawilltaketheinitiativetoadapttothenewenvironmentandnewchallenges.Adheringtothenewdevelopmentphilosophy,itwillpromotehigh-qualityeconomicandsocialdevelopmentbyintensifyingthesupply-siderestructuring,payingattentiontodemand-sidemanagement,andestablishingthenewdualcirculationdevelopmentpattern.Asthefirstcountrytowitnessarapideconomicreboundfromthepandemic,Chinawillcontinuetoleadglobaleconomicrecoveryin2021.AccordingtoIMF’slatestreport,China’seconomicgrowthratewillreboundto8.1%in2021,makingitoneofthefastest-growingmajoreconomies.In2021,theglobalcontainershippingmarketcontinuestofaceuncertaintiestosomeextents.Supplyanddemandimbalanceofglobalshippingcapacity,containershortage,andportcongestionwillsupporttheupwardtrendintheshippingmarketandresultinachainreactiontofreightratesandschedulereliability.IftheCOVID-19pandemicisbroughtundercontrolovertime,shippingroutes,shippingcapacity,andquantitysupplyofcontainersmaybebacktonormalandthefreight
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
ratesofcontainertransportationmaydecreasecorrespondingly.Globaleconomicrecovery,alongwithotherpositivefactors,isexpectedtodrivedemandforseabornefreight.In2021,Chinawillfurtheropenupitseconomyandimplementpoliciesandmeasuresthatfavorforeigntrade.Throughbroader,moreextensiveandin-depthopeningup,Chinawillestablishthenewdualcirculationdevelopmentpatternforthedomesticandinternationaleconomiccyclesboostingeachother.Asthefreetradezonepilotsystemplaysanincreasinglyimportantroleininnovation,tradeandinvestmentwillbemoreconvenient.Besides,thesigningoftheRegionalComprehensiveEconomicPartnership(RCEP)AgreementandtheorganizingofChinaInternationalImportExpowillstrengthenthecooperationbetweenChinaanditstradingpartners,increasingmomentumforcommodityimportandexportandbenefitingtheportindustry.Moreover,theongoingprogressintheconstructionofintelligentportsandgreenportswillalsoinjectnewenergyintothedevelopmentoftheportindustry.
2.DevelopmentstrategiesoftheCompany
TheCompanyisstrivingtobecomeaworld-classcomprehensiveportserviceprovider.TheCompanywillfirmlyadheretothestrategicprincipleof“leveragingonitslong-termstrategy,tappingthecurrentedges,drivingthroughtechnologyandembracingchanges”andthegoalofqualitydevelopmenttoacceleratethetechnology-poweredinnovation,realizeascientificgloballayoutwithbalanceddevelopment,providefirst-classprofessionalsolutions,andseekmorereturnsforshareholders,theeffortsofwhichwillinturnsupportthedevelopmentoflocaleconomyandindustriesandmakepositivecontributionstotheportindustry.Firstly,inrespectofdomesticstrategies,theCompanywill,byseizingtheopportunitiesarisingfromthesupply-siderestructuringandbasedon“regionalconsolidationandenhancementofsynergy”,consistentlyseekforopportunitiesofconsolidationandcooperationacrossthefivemajorportclustersalongthecoastalregions,inordertofurtherexpandingandimprovingitsdomesticportnetworklayout.TheCompanyisexpectedtoleadanewdirectionintheconsolidationofregionalportswithakeyfocusonconstantlyimprovingthequalityofportdevelopmentwitheveryeffort.Secondly,inrespectofoverseasstrategies,theCompanywillcontinuetocapitalizeontheopportunitiesarisingfromthenational“BeltandRoad”initiativepromotedandtheinternationalindustrialtransfers,andadapttothetrendofdeployingmega-vesselsandformingshippingalliances.Emphasiswillbeplacedonthedevelopmentofglobalmajorhubportsandgatewayportsaswellasthoseregionswithhighmarketpotential,fast-growingeconomyandpromisingdevelopment
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
prospect.TheCompanywillgraspopportunitiesinport,logistics,andrelatedinfrastructureinvestmentandenhanceitsglobalportnetworkpersistently.Thirdly,inrespectofinnovationstrategies,adheringtotheprincipleof“drivingthroughtechnologyandembracingchanges”,theCompanywillcontinuouslyincreaseitsinvestmentininnovationandestablishafootholdinthetechnologyhighgroundtosupportthefutureportdevelopment.Bymeansoftechnologicalinnovationandmanagementinnovation,itwillsignificantlyenhancetheefficiencyandprofitabilityofportoperationandbecomealeadingenterpriseintheintelligencetransformationoftraditionalports.Itwillalsoenrichthecomprehensiveportservicesthroughbusinessmodelinnovation.
3.Businessplansfor2021
In2021,theCompanywillcontinuouslycommititselftotheoveralloperationphilosophyof“makingprogressamidstability”,firmlyadheretothestrategicprincipleof“leveragingonitslong-termstrategy,tappingthecurrentedges,drivingthroughtechnologyandembracingchanges”,promotequalityandefficiencyimprovementwithrelatedmeasures,andimplementriskpreventionwithafocusonsystemdevelopment.Inpursuitofhigh-qualitygrowth,itwillacceleratetechnology-ledandinnovation-drivendevelopment,soastostrivetowardsitsvisionofbecomingthe“world-classcomprehensiveportserviceprovider”.Intermsoftheconstructionofhomebaseports,theCompanywillpressaheadatfullsteamwiththedevelopmentofworld-classleadingportstoimplementthestrategyofbuildingastrongtransportationcountry.ItwillrefineandoptimizethefuturedevelopmentgoalsandactionplansforWestShenzhenPortZoneandboostcomprehensivecapabilitiesinlinewiththedevelopmentstrategyoftheGuangdong-HongKong-MacaoGreaterBayArea.Throughbetterresourceallocation,enhancementofthemanagementbasis,expansionofancillaryandvalue-addedservices,andimprovementofservicestandards,itwilldevelopaportecosystemforwin-winoutcomes.Atthesametime,itwillfurtherincorporateintelligenceelementsintoMawanIntelligentPorttoachievebusinessinnovationandincreaseregionalinfluence.Intermsofoverseashomebaseports,CICTandHIPGwillcontinuetofocusonportbusinessandstrengthencooperationwithshippingcompanies,soastoenhancebusinesssynergy,capitalizeonthecollaborativeadvantagesbetweenportzones,andevolveintointernationalshippingcentersinSouthAsia.HIPGwillpushforwardthegrowthofallbusinesssegmentsandworkontheintroductionofbusinessandinvestmentintoindustrialparks.Intermsoftheoverseasbusiness,theCompanywillsticktotheoveralldevelopmentplanfor
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
projectsabroad,“East-Westroutes,South-Northroutes,regionsalongtheBeltandRoadInitiative”.ApartfromcompletingthedeliveryproceduresfortheremainingtwoterminalsofCMACGM,itwilloptimizetheconstructionoftheoverseasmanagementandcontrolsystemandimprovetheoperatingeffectivenessandefficiencyofoverseasprojectsbyoptimizingtheirmanagementsystem.Inthefaceofthecurrentcomplexinternationaldynamic,itwillkeepabreastofchangesinthetradeenvironmentandcontinuouslymonitorportconsolidationopportunitieswithintheregion.Intermsofcomprehensivedevelopment,theCompanywillcloselyfollowchangesinthetradeenvironment,seizeopportunitiesbroughtbytheadjustmentoftheglobalindustrialchain,andtapintofavorablepoliciestoexploitthemarket.Byfullyintegratingtheresourcesfromtheportindustrialchain,valuechain,logisticschain,andinnovationchain,itwillexplorethePPCcomprehensivedevelopmentmodelandseekforsustainablebusinessdevelopmentthrough“investmentintroductiontoindustrialparksandcomprehensivelanddevelopment”.Intermsofinnovativedevelopment,theCompanywillfocusoninnovation-drivenandtechnology-empoweredindustrialtransformationandupgrade.LeveragingtheDevelopmentandResearchCenterofCMPort,itwilldevelopthetechnologyinnovationecosystemofCMPortandexportporttechnologyinnovationprogrammes,withanaimtobuildtheintegratedindustry,education,andresearchplatform.Centeringonthe“CMChip”platform,itwilldevelopthreeleadingproductsintheindustries,includingCTOS(ContainerTerminalOperationSystem),BTOS(BulkCargoTerminalOperationSystem),andLPOS(LogisticParkOperationSystem),torealizeintelligentproductionandoperationwithintheterminals.The“CMePort”platformwillinnovatetheservicemodelsthroughtheimprovementoftheinformationservicesystemofportzonesandthe“Port+Internet”approach,andexploreanddevelopanopenintelligentportplatform.Intermsofoperationmanagement,theCompanywillcontinuetofollowstrategicguidanceandoptimizemanagementandcontrol.Itwillalsofurtherboostmanagementandcontrolefficiency.TheCompanywillestablishanentirelifecycleassetmanagementsystemtoenhanceconstructionqualityandmanagementofmajorprojects.Bytheongoingimprovementofbusinessmanagementstandards,itwilldevelopaworld-classoperatingmanagementsystemthatcreatessustainablevalueandavalue-orientedmanagementheadquarters.Intermsofmarketingandcommerce,theCompanywillcontinuetocooperatewithmajorshippingcompanies,optimizeportenvironment,enhanceinteractionwithend-customers,improvecustomerloyalty,andstrengthendirectcontrolandinfluenceovercargosources,soastoboostthemarketcompetitivenessofCMPort.Inlinewiththenationaldualcirculationpattern,itwillestablishthe
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
interconnectedsystemof“twoportsandoneshippingroute”inNorthernandSouthernChinatocreatesynergybetweenthesetworegions,developandupgradenewshippingroutes,andencouragebusinesscollaborationofportswithinallcargoregions,promotingdomestictradebusinesses.Capitalexpenditureplans:
In2021,theCompanywillformulatecapitalexpenditureplansaccordingtobusinessdevelopmentneeds.KeyinvestmentprojectsincludeHaixingHarborupgradeandreconstructionproject,MachongPortBulkGrainPhaseIIIProject,ZhanjiangPortXiashanPortGeneralTerminalProject,andtheconstructionofHIPGcontainerterminalinSriLanka,etc.
4.Possiblerisksandcountermeasures
(1)RiskofmacroeconomicfluctuationsInternationally,volatileepidemicsituation,globaleconomicfluctuation,andpoliticalturmoilcastuncertaintiesovertheglobaleconomicandbusinessenvironment.Giventhecontinuedandrepeatedimpactofthepandemicontheglobaleconomy,theeffectivenessofpandemiccontrolmeasuresandreliefpoliciesrolledoutinvariouscountrieswillaffectglobaleconomicrecovery.Followingthepandemic,thenewroundofeasymonetarypolicieswillincreaseglobaldebtlevelandemergingmarketswillbecomemorevulnerable.Traditionalandnon-traditionalrisks,suchasnaturaldisastersandgeopoliticaluncertainties,mayaggregatevolatilityintheinternationalfinancialmarket.SuchrisksofuncertaintieswillshockChina’sforeigntrademarket,containershippingmarket,andbulkcommoditydemand,andposecertainchallengestotheCompany’soverseasinvestmentandlayoutplanning.Domestically,lackofasoundfoundationforeconomicrecovery,China’seconomicgrowthstillfacesuncertaintiesasaresultofthepandemic,theSino-USfriction,andtheeffectivenessofvaccinedistribution.Inaddition,thepandemichasacceleratedtheimplementationoftechnologicalinnovationpoliciesinthenationallevelandamplifiedthedemandandurgencyofthedigitalizationintheshippingindustry.
Facingtheriskofmacroeconomicfluctuations,especiallytherisksimposedonforeigntradeandimportandexportbusinessbytheCOVID-19pandemicandtheSino-UStradefriction,theCompanywilltaketheinitiativetoidentifyandrespondtochanges.Firstly,itwillworkinfullswingtosupportthenational14thFive-yearPlanandachievehigh-qualitygrowthbyfacilitatingtransformationandupgradeofenterprisesinthepost-pandemicera.Secondly,itwillfollowthenational“BeltandRoad”initiativeandthestrategiesonbuildingastrongtransportationcountry,developingtheGuangdong-HongKong-MacaoGreaterBayArea,andrealizingtheintegrated
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
developmentofYangtzeRiverDelta,soastohelpconstructthenewnationaldualcirculationdevelopmentpattern.Thirdly,itwillseizetheopportunitiesarisingfromanewroundofhigh-levelopeninguppoliciestodrivethesustainabledevelopmentofport-relatedbusinessundertheeconomicglobalizationtrend.Fourthly,itwillenhancecapacitybuildingofriskidentification,warning,andelimination,andcontinuetofollowuponthedevelopmentoftheglobalindustrialchainandtrademovementstoadjustbusinessoperatingstrategiesappropriatelytoeffectivelyprevent,control,andreduceexternalrisks.
(2)PolicyrisksThepolicyrisksintheportindustrycanbeeitherpositiveornegativetotheindustry.Ontheonehand,nationalstrategiessuchasthekey“BeltandRoad”initiativeandthedevelopmentoftheGuangdong-HongKong-MacaoGreaterBayAreawillintroducefavorablepoliciestotheindustrialdevelopment;ontheotherhand,policiesandinitiativesofthegovernmentforreducingcostsandimprovingefficiencyinlogistics,anti-monopoly,andenvironmentalprotectionmayexertpressureontheprofitabilityoftheportindustry.Facingthepolicyrisks,ononehand,theCompanywillproactivelypracticethekey“BeltandRoad”initiativeandaseriesofnationalstrategiestoseizetheopportunitiesarisingfromthesepolicies;ontheotherhand,inresponsetothenegativerisks,theCompanywillimproveitsoperationmanagementcapabilitybycontinuouslyenhancingqualityandefficiencyandstrengtheningresourceallocation,andwillconstantlyoptimizestrategicinitiativestoactivelyseeknewprofitgrowthdriverandimprovethesustainableprofitability.
(3)OperationmanagementrisksAmidstthecurrentfavorableenvironmentofdomesticandoverseasregionalportsintegration,theCompanyhasswiftlystrengtheneditsmainportbusinessandsuccessfullymadeinvestments,mergers,andacquisitionsofanumberofdomesticandoverseasports.Atthesametime,theCompanyfacesunfavorableconditionsofportsincertainregionssuchasmassiveportassetinvestmentincertainregions,relativelylowoperationefficiencyandinvestmentreturns,andetc.Themajorrisksinclude:(1)investmentdecision-makingwillberiskierandmoredifficultunderthecurrentcomplicatedexternalenvironment;(2)theCompany’sinternationalizedoperationmanagementsystemstillneedstobeimprovedandtheCompanyshallstrengthenthebenefitsofintegrationthroughmanagementoutputandotherwaystoaccommodatewithitsownrapiddevelopmentandexpansion;(3)theriskcontrolsystemshallbeconsistentlyestablishedandoptimizedtoconstantlyimprovemanagementefficiency.IntermsoftheCompany’sinternaloperationmanagementrisks,theCompanywill:(1)increasecustomerloyaltyandseizemarketopportunitiesbasedonthreeimprovementelements,namely“market,resources,services”;(2)improveinternalcontrolsystemtotakefurtherprecautionsinrisk
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
controlandreinforcethestringentrestrictionsoninternalcontrol,ensuringeffectiveriskidentificationandcontrolandconsolidatingthefoundationofriskcontrol;and(3)optimizeriskwarningsystemtopreciselykeepabreastofthenewdevelopmentswithanaimtoseizetheprimeopportunitiesforriskcontrol.X.CommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews
1.DuringtheReportingPeriod
| Date | Place | Wayofcommunication | Typeofcommunicationparty | Objectofcommunication | Indextobasicinformationofresearches |
| 16April2020 | ChinaMerchantsPortBuilding | Teleconferencing | Institution | IndustrialSecurities,ChangjiangSecurities,UBS,ShanghaiLifeInsurance,OrientalAlphaFund,ChinaSecurities,ChinaCOSCO,CICC,EverBloom,XingyinFund,HuaxiSecurities,HuashangFund,Hua’anFund,HuataiSecurities,SichuanDevelopmentFund,GuotaiJunan,GTSFund,TFFund,CPIC,PacificSecurities,PacificAssets,Ping’anSecurities,ChinaMerchantsSecurities,ZheshangSecurities,HaitongSecurities,ShenwanHongyuanSecurities,GreenCourtCapital,JuliInvestment,WesternSecurities | Maindiscussions:thebasicconditionofoperations,investmentsmadeandthefinancialconditionoftheCompany;Materialsprovided:NoneIndex:SZSEEasyIR(http://irm.cninfo.com.cn/ircs/index) |
| 29May2020 | ChinaMerchantsPortBuilding | One-on-onemeeting | Institution | GoldenEagleFundBaoyingFund | |
| 9July2020 | ChinaMerchantsPortBuilding | One-on-onemeeting | Institution | HaitongSecuritiesandGoldenEagleFund | |
| 31August2020 | ChinaMerchantsPortBuilding | Teleconferencing | Institution | ChangjiangSecurities,HuaxiSecurities,HaitongSecurities,ZheshangSecurities,HuarongSecurities,GoldenEagleFund,BaoyingFund,LionFund,ZeyuanCapital,XianhuInvestment,ShanyuanFund,andGHYEnvironmentWater(GHY) |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| 10September2020 | Shanghai | Investmentconferenceofsecuritiesfirm | Institution | ChangjiangSecurities | |
| 22September2020 | ChinaMerchantsPortBuilding | Communicationonphone | Institution | PingAnAssetManagement | |
| 4November2020 | Shenzhen | One-on-onemeeting | Institution | Cinda-CBAFund | |
| 11November2020 | Chengdu | Investmentconferenceofsecuritiesfirm | Institution | HuaxiSecurities | |
| 1January,2020to31December,2020 | ChinaMerchantsPortBuilding | Byphone,orwritteninquiry(theEasyIRplatformofSZSEoremail) | Individual | Individualinvestors | |
| Timesofcommunications | 145 | ||||
| Numberofinstitutionscommunicatedwith | 50 | ||||
| Numberofindividualscommunicatedwith | 137 | ||||
| Numberofothercommunicationparties | 0 | ||||
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | No | ||||
2.Period-endtoDisclosureDate
| Date | Place | Wayofcommunication | Typeofcommunicationparty | Objectofcommunication | Indextobasicinformationofresearches |
| 1January2021to30March2021 | ChinaMerchantsPortBuilding | Byphone,orwritteninquiry(theEasyIRplatformofSZSEoremail) | Individual | Individualinvestors | Maindiscussions:thebasicconditionofoperations,investmentsmadeandthefinancialconditionoftheCompany;Materialsprovided:NoneIndex:SZSEEasyIR(http://irm.cninfo.com.cn/ircs/index) |
| Timesofcommunications | 17 | ||||
| Numberofinstitutionscommunicatedwith | 1 | ||||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Numberofindividualscommunicatedwith | 16 |
| Numberofothercommunicationparties | 0 |
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | No |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartVSignificantEventsI.ProfitDistributionstoOrdinaryShareholders(intheFormofCashand/orStock)Formulation,executionoradjustmentsofprofitdistributionpolicyforordinaryshareholders,especiallycashdividendpolicy,inReportingPeriodPursuanttotheCSRCGuidelineforListedCompaniesNo.3-CashDividendsofListedCompaniesandtheNoticeofCSRConFurtherImplementingMattersRelatedtoCashDividendsofListedCompanies,theArticlesofAssociationclarifiesthespecificprofitdistributionpolicy,decision-makingproceduresandmechanism,adjustmentofprofitdistributionpolicy,implementationofprofitdistributionplan,andprofitdistributionforforeignshares.DuringtheReportingPeriod,theCompanyexecutedtheprofitdistributionpolicyinstrictcompliancewiththeArticlesofAssociation.
| Specialstatementaboutthecashdividendpolicy | |
| IncompliancewiththeCompany’sArticlesofAssociationandresolutionofgeneralmeeting | Yes |
| Specificandcleardividendstandardandratio | Yes |
| Completedecision-makingprocedureandmechanism | Yes |
| Independentdirectorsfaithfullyperformedtheirdutiesandplayedtheirduerole | Yes |
| Non-controllinginterestsareabletofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestsarefullyprotected | Yes |
| Incaseofadjustingorchangingthecashdividendpolicy,theconditionsandproceduresinvolvedareincompliancewithapplicableregulationsandtransparent | Notapplicable |
Theprofitdistributionstoordinaryshareholders,eitherintheformofcashorstock,inthepastthreeyears(includingtheReportingPeriod)
1.DividendPayoutPlanfor2018AsauditedbyDeloitteToucheTohmatsuCertifiedPublicAccountantsLLP,theconsolidatednetprofitattributabletotheCompanyastheparentfor2018andthenetprofitoftheCompanyastheparentstoodatRMB1,090,418,910.77andRMB71,014,741.10respectively.
(1)AccordingtotheCompanyLawandtheArticlesofAssociationoftheCompany,theCompanysetasideRMB7,101,474.11ofprofitasstatutoryreserve.TheaccumulativedistributableprofitoftheCompanyastheparentattheendof2018wasRMB259,943,085.16.
(2)Baseonthetotal1,793,412,378sharesasattheendof2018,acashdividendofRMB1.14(tax
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
included)wastobedistributedforevery10shares,totalingRMB204,449,011.09.Aftertheabove-mentioneddistribution,theretainedearningsoftheCompanyastheparentwouldbeRMB55,494,074.07.TheBoardofDirectorsoftheCompanypublishedtheimplementationannouncementondividendpayoutfor2018onSecuritiesTimesandTaKungPao(HK)dated3July2019,andcompletedthedividendpayoutfortheA-shareandB-shareholderson10July2019and12July2019respectively.
2.DividendPayoutPlanfor2019AsauditedbyDeloitteToucheTohmatsuCertifiedPublicAccountantsLLP,theconsolidatednetprofitattributabletotheCompanyastheparentfor2019andthenetprofitoftheCompanyastheparentstoodatRMB2,898,192,168.84andRMB1,031,693,987.55respectively.
(1)AccordingtotheCompanyLawandtheArticlesofAssociationoftheCompany,theCompanysetasideRMB103,169,398.76ofprofitasstatutoryreserve.TheaccumulativedistributableprofitoftheCompanyastheparentattheendof2019wasRMB983,693,068.62.
(2)Baseonthetotal1,922,365,124sharesasattheendof2019,acashdividendofRMB4.60(taxincluded)wastobedistributedforevery10shares,totalingRMB884,287,957.04.Aftertheabove-mentioneddistribution,theretainedearningsoftheCompanyastheparentwouldbeRMB99,405,111.58.TheBoardofDirectorsoftheCompanypublishedtheimplementationannouncementondividendpayoutfor2019onSecuritiesTimesandTaKungPao(HK)dated9July2020,andcompletedthedividendpayoutfortheA-shareandB-shareholderson15July2020and17July2020respectively.
3.DividendPayoutPlanfor2020AsauditedbyDeloitteToucheTohmatsuCertifiedPublicAccountantsLLP,theconsolidatednetprofitattributabletotheCompanyastheparentfor2020andthenetprofitoftheCompanyastheparentstoodatRMB2,065,322,969.66andRMB2,603,450,148.53respectively.
(1)AccordingtotheCompanyLawandtheArticlesofAssociationoftheCompany,theCompanyintendstosetasideRMB260,345,014.85ofprofitasstatutoryreserve.TheaccumulativedistributableprofitoftheCompanyastheparentattheendof2020wasRMB2,442,510,245.26.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
(2)Baseonthetotal1,922,365,124sharesasattheendof2020,acashdividendofRMB3.80(taxincluded)istobedistributedforevery10shares,totalingRMB730,498,747.12.Aftertheabove-mentioneddistribution,theretainedearningsoftheCompanyastheparentwillbeRMB1,712,011,498.14.Theaboveprofitdistributionplanstillneedstobesubmittedtothe2020AnnualGeneralMeetingforapproval.
Cashdividendforordinaryshareholdersinthepastthreeyears(includingtheReportingPeriod)
Unit:RMB
| Year | Cashdividends(taxinclusive)(A) | Netprofitattributabletoordinaryshareholdersofthelistedcompanyinconsolidatedstatementsfortheyear(B) | Aas%ofB(%) | Cashdividendsinotherforms(suchassharerepurchase)(C) | Cas%ofB(%) | Totalcashdividends(includingotherforms)(D) | Das%ofB(%) |
| 2020 | 730,498,747.12 | 2,065,322,969.66 | 35.37% | 0.00 | 0.00% | 730,498,747.12 | 35.37% |
| 2019 | 884,287,957.04 | 2,898,192,168.84 | 30.51% | 0.00 | 0.00% | 884,287,957.04 | 30.51% |
| 2018 | 204,449,011.09 | 1,090,418,910.77 | 18.75% | 0.00 | 0.00% | 204,449,011.09 | 18.75% |
TheCompanywasprofitableintheReportingperiodandthepositiveprofitsoftheCompanyastheparentattributabletoordinaryshareholderswhilethedistributionplanofcashdividendforordinaryshareholderswasnotproposed.?Applicable√NotapplicableII.FinalDividendPlanfortheReportingPeriod
| Bonusshares/10shares(share) | 0 |
| Cashdividend/10shares(RMB)(taxinclusive) | 3.8 |
| Bonusissuefromcapitalreserves(share/10shares) | 0 |
| Sharebase(share) | 1,922,365,124 |
| Totalcashdividends(RMB)(taxinclusive) | 730,498,747.12 |
| Cashdividendsinotherforms(suchassharerepurchase)(RMB) | 0.00 |
| Totalcashdividends(includingotherforms)(RMB) | 730,498,747.12 |
| Distributableprofits(RMB) | 2,442,510,245.26 |
| Cashdividends(includingotherforms)as%oftotalprofitstobedistributed(%) | 100% |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Detailsofthecashdividends |
| AstheCompanyisinthematurestageofdevelopmentwithsignificantcapitalexpendituresarrangement,whendistributingprofits,theproportionofcashdividendsinthisprofitdistributionshallbe40%atleast. |
| DetailsoffinaldividendplanfortheReportingPeriod |
| AsauditedbyDeloitteToucheTohmatsuCertifiedPublicAccountantsLLP,theconsolidatednetprofitattributabletotheCompanyastheparentfor2020stoodatRMB2,065,322,969.66andthenetprofitoftheCompanyastheparentatRMB2,603,450,148.53.(1)AccordingtotheCompanyLawandtheArticlesofAssociationoftheCompany,theCompanyintendstosetasideRMB260,345,014.85ofprofitasstatutoryreserve.TheaccumulativedistributableprofitoftheCompanyastheparentattheendof2020wasRMB2,442,510,245.26.(2)Baseonthetotal1,922,365,124sharesasattheendof2020,acashdividendofRMB3.80(taxincluded)istobedistributedforevery10shares,totalingRMB730,498,747.12.Aftertheabove-mentioneddistribution,theretainedearningsoftheCompanyastheparentwillbeRMB1,712,011,498.14.Theaboveprofitdistributionplanstillneedstobesubmittedtothe2020AnnualGeneralMeetingforapproval. |
III.FulfillmentofCommitments
1.CommitmentsoftheCompany’sActualController,Shareholders,RelatedParties,andAcquirers,aswellastheCompanyItselfandotherEntitiesFulfilledintheReportingPeriodorOngoingatthePeriod-end
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| Commitmentsmadeinacquisitiondocumentsorshareholdingalterationdocuments | CMGDandBroadfordGlobal | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | CommitmentonsafeguardingindependenceofCMPortmadebyCMGDanditspersonactinginconcertBroadfordGlobal:tosafeguardtheindependenceoffinance,institutions,businessandpersonnelofCMPortaswellasindependenceandintegrityofassetsofCMPort. | 15March2018 | ThecommitmentonsafeguardingindependenceofCMPortiseffectiveforalongtime;thecommitmentonregulatingrelated-partytransactionsiseffectiveduringtheperiodwhenCMGDanditspersonsactinginconcertpossesscontrolpowerovertheCompany | Ongoing |
| CMGDandBroadfordGlobal | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | Commitmentonregulatingrelated-partytransactionmadebyCMGDandcorrespondingpersonsactinginconcert-BroadfordGlobal:1.CMGD/BroadfordGlobalwillmakeagreatefforttoreducerelated-partytransactionbetweenCMGD/BroadfordGlobalanditsrelatedpartiesaswellasCMPort.Inevitablebusinessdealingsortransactionsshallbeconductedaspermarketizationprincipleandfairpriceandtheobligationofinformationdisclosureshallbefulfilledpursuanttoprovisions;2.CMGD/BroadfordGlobalanditsrelatedpartiesensuretheywillstrictlyobserverelatedstipulationsoflaws,regulations,normativedocumentsandArticlesofAssociationofCMPortandequallyexecuteshareholders'rightsandfulfillshareholders' | 15March2018 | ThecommitmentonsafeguardingindependenceofCMPortiseffectiveforalongtime;thecommitmentonregulatingrelated-partytransactionsiseffective | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| obligationstogetherwithothershareholdersinlinewithlegalprogramaswellaswon'tseekimproperinterestwithactualcontroller'sstatusordamagelegitimateinterestofCMPortandothershareholders;3.TheabovecommitmentiscontinuouslyeffectiveduringtheperiodwhenCMGD/BroadfordGlobalhastherighttocontrolCMPort.IncaseoflossesincurredbyCMGD/BroadfordGlobalfailingtofulfilltheabovecommitmenttoCMPort,CMGDwillbearcorrespondingcompensationresponsibility. | duringtheperiodwhenCMGDanditspersonsactinginconcertpossesscontrolpowerovertheCompany | |||||
| CMG | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | Commitmentonregulatingrelated-partytransaction:1.ChinaMerchantsGroupwilltryitsbesttoreducerelated-partytransactionbetweenitanditsrelatedpartiesandCMPort.Inevitablebusinessdealingsortransactionsshallbeconductedaspermarketizationprincipleandfairpriceandtheobligationofinformationdisclosureshallbefulfilledpursuanttoprovisions;2.ChinaMerchantsGroupensuretheywillstrictlyobserverelatedstipulationsoflaws,regulations,normativedocumentsandArticlesofAssociationofCMPortandequallyexecuteshareholders'rightsandfulfillshareholders'obligationstogetherwithothershareholdersinlinewithlegalprogramaswellaswon'tseekimproperinterestwithactualcontroller'sstatusordamagelegitimateinterestofCMPortandothershareholders;3.TheabovecommitmentiscontinuouslyeffectiveduringtheperiodwhenChinaMerchantsGrouphastherighttocontrolCMPort.IncaseoflossesincurredbyChinaMerchantsGroupfailingtofulfilltheabovecommitmenttoCMPort,ChinaMerchantsGroupwillbearcorrespondingcompensationresponsibility. | 15March2018 | Effectiveuntilno-longertobetheactualcontrolleroftheCompany | Ongoing | |
| Commitmentsmadeintimeofassetrestructuring | CMPID | Commitmentonrestrictiononsharetrading | 1.CMPortsharesobtainedbypurchasingassetswithsharesissuedthistimeareforbiddentobetransferredortransactedinthemarketbeforethelatteronebetweenthedatearising36monthsafterthedatewhenCMPortsharesgainedbyCMPIDbasedonthistransactionareregisteredunderthenameofCMPIDandthedatewhenfulfillmentofcompensationobligationssetforthintheImpairmentCompensationAgreementforIssuingSharesToPurchaseAssetssignedbyandbetweenCMPIDandCMPort,separatelyanditssupplementaryagreement(ifany)isover(exceptforrepurchasingorpresentingsharespursuanttoImpairmentCompensationAgreementforIssuingSharesToPurchaseAssetsanditssupplementaryagreement(ifany));2.IncaseofclosingpriceofCMPortstocksbeinglowerthanissuepriceforconsecutive20transactiondayswithin6monthsaftercompletionofthetransactionorsuchclosingpricebeinglowerthanissuepriceattheendofthe6thmonthaftercompletionofthetransaction,thelockupperiodofCMPortstocksheldbyCMPIDwillbeautomaticallylengthenedforatleast6months;3.CMPortshareswhichderivefromconsiderationsharesobtainedbyCMPIDbasedonthetransactionduringthelockupperiodduetoCMPortdistributingstockdividendandcapitalreserveconvertedintoincreasedcapitalshallbesubjecttothecommitmentregardingtheaboverestrictedstocktradeperiod;4.IncasethatthetransactionisplacedonfileforinvestigationandprosecutionbyjudiciaryauthoritiesaswellasregisteredandinvestigatedbyCSRCbecausefalserecord,misleadingstatementorimportantomissionhappenstoprovidedordisclosedinformation,CMPIDwon'ttransferitsshareswithrightsandinterestsatCMPortbeforecaseinvestigationconclusionisdrawn; | 26December2018 | 25June2022 | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| 5.Incasethatlockupperiodsetforthinthecommitmentisinconsistentwithregulatoryopinionsfromsecuritiesmarketsupervisiondepartmentorlockupperiodrequiredbyrelatedprovisions,CMPIDshalladjusttheabovelockupperiodpursuanttoregulatoryopinionsfromrelevantsecuritiesmarketsupervisiondepartmentandrelatedprovisions.6.Aftertheabovelockupperiodexpires,CMPIDshallobserveprovisionsoflawsandregulations,relatedrulesofShenzhenStockExchangeaswellasArticlesofAssociationofCMPortincaseofreducingsharesheldbyit. | |||||
| CMPID | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | Commitmentonavoidinghorizontalcompetition:1.CMPIDandotherenterprisecontrolledbyCMPIDfailtoengageinorparticipateinbusinessoractivitywhichissimilarwithandconstitutesorlikelyconstitutescompetitiverelationwithmainbusinessconductedbyCMPortandtheenterprisecontrolledbyitnow;2.CMPIDwilltryitsbesttopromoteCMPIDandotherenterprisecontrolledbyCMPIDnottodirectlyorindirectlyengageinorparticipateinorassisttoengageinorparticipateinanybusinessoractivitywhichconstitutesorlikelyconstitutescompetitiverelationwithmainbusinessconductedbyCMPortandtheenterprisecontrolledbyitnowandinthefutureindependentlyortogetherwithothers;3.IncaseofdiscoveringanynewbusinessopportunitywhichconstitutesorlikelyconstitutesdirectorindirectcompetitiverelationwithmainbusinessofCMPortortheenterprisecontrolledbyit,CMPIDorCMPIDandotherenterprisecontrolledbyitwillimmediatelynotifyCMPortinwrittenaswellasmakeagreatefforttopromotesuchbusinessopportunitytobeprovidedtoCMPortortheenterprisecontrolledbyitfirstlyaccordingtoreasonableandfairtermsandconditions;4.IncaseofCMPortortheenterprisecontrolledbyitwaivingsuchcompetitivenewbusinessopportunityandCMPIDor/andotherenterprisecontrolledbyitengaginginsuchcompetitivebusiness,CMPortortheenterprisecontrolledbyitwillhavetherighttopurchaseanystockrights,assetsorotherrightsandinterestsintheabovecompetitivebusinessfromCMPIDor/andotherenterprisecontrolledbyitonceorseveraltimesatanymoment,orCMPortwillselectentrustedoperation,leasingorcontractoperationofassetsorbusinessesofCMPIDor/andotherenterprisecontrolledbyitintheabovecompetitivebusinessasperthemodepermittedbynationallawsandregulations;5.WhenCMPIDandotherenterprisecontrolledbyitplanstotransfer,sell,rentout,conductlicenseduseofortransferorallowtouseassetsandbusinesseswhichconstitutesorlikelyconstitutesdirectorindirectcompetitiverelationshipwithmainbusinessofCMPortortheenterprisecontrolledbyitinotherway,CMPIDandotherenterprisecontrolledbyitwillprovidetherightofpriorityassignmenttoCMPortortheenterprisecontrolledbyitandpromisetomakeagreatefforttopromoteotherenterprisecontrolledbyCMPIDprovideCMPortortheenterprisecontrolledbyitwiththerightofpriorityassignmentundertheabovesituation;6.Asofthedatewhenthecommitmentletterisprovided,CMPIDpromisestocompensateallactuallosses,damagesandexpensesarisingfromviolationofanyclauseinthecommitmentletterbyCMPIDortheenterprisecontrolledbyittoCMPortortheenterprisecontrolledbyit. | 26July2018 | Effectiveuntilno-longertobethelargestshareholderoftheCompany | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| CMPID | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | Commitmentonregulatingrelated-partytransaction:1.CMPIDandotherenterprisecontrolledbyitwillmakeagreatefforttoavoidandreducerelated-partytransactionbetweenCMPortandeconomicentitycontrolledbyit;2.CMPIDandotherenterprisecontrolledbyitwillexercisestockholder'srightsinaccordancewithrelatedprovisionsofrelevantlawsandregulationsaswellasArticlesofAssociationofCMPortandfulfilltheobligationofvoteavoidanceatthemomentofvotingforrelated-partytransactionsinvolvedbyCMPIDandotherenterprisecontrolledbyitatthestockholders'meeting;3.Asforrelated-partytransactionwhichisinevitableoroccursduetoreasonablereason,CMPIDwillcarryouttransactionpursuanttotheprincipleofopenness,fairnessandjusticeformarkettransactionandbasedonfairandreasonablemarketprice,performrelated-partytransactiondecision-makingprocessandlegallyfulfillinformationdisclosureobligationtosafeguardbenefitsofCMPortandothershareholdersofCMPortinlinewithprovisionsoflaws,regulations,normativedocumentsandArticlesofAssociationofCMPort;4.It'sensuredthatnolegitimateinterestofCMPortandothershareholdersofCMPortisdamagedbyrelated-partytransactionbasedonstatusandinfluenceofCMPort;5.CMPIDwillpromoteotherenterprisecontrolledbyittoobservethecommitmentofSubparagraph1-4;6.IncaseofCMPIDandotherenterprisecontrolledbyitviolatingtheabovecommitment,causingrightsandinterestsofCMPortanditsshareholdersaredamaged,CMPIDwilltakecorrespondingcompensationresponsibilityaccordingtolaw. | 26July2018 | Effectiveuntilno-longertobethelargestshareholderoftheCompany | Ongoing |
| CMPID | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | CommitmentaboutkeepingindependenceofCMPort:1.Afterthetransactioniscompleted,CMPIDwillstrictlyobserverelatedprovisionsregardingindependenceoflistedCompaniesfromCSRCandwon'tviolatestandardoperatingproceduresofCMPortbasedonthefirstmajorityshareholder,conductexcessiveinterventionofoperationandmanagementactivitiesofCMPortanditssubsidiary,embezzlebenefitsofCMPortanditssubsidiaryordamagelegitimateinterestofCMPortandothershareholders;2.CMPIDwillensureCMPortisindependentfromCMPIDandrelatedpartiesintheaspectsofbusiness,asset,finance,personnelandinstitution;3.CMPIDensuresindependenceofCMPort,CMPIDandotherenterprisecontrolledbyitfailtooccupycapitalsandresourcesofCMPortbasedonviolationinanywayandwillstrictlyobserveprovisionsofrulesandregulationsforavoidingoccupationofrelatedpartyfundsfromCMPortaswellasrelatedlaws,regulationsandnormativedocuments;4.ThecommitmentlettertakeseffectasofthesignaturedateofCMPIDaswellasislegallybindinguponCMPID.CMPIDensuresitwillstrictlyfulfillvariouscommitmentsinthecommitmentletterandwilltakecorrespondinglegalresponsibilityforlossesincurredtoCMPortduetoviolationofrelatedcommitment. | 26July2018 | Effectiveuntilno-longertobethelargestshareholderoftheCompany | Ongoing |
| CMG | Commitmentsonhorizontalcompetition,related-partytransactionandcapital | Commitmentonavoidinghorizontalcompetition:1.ChinaMerchantsGroupandtheenterprisecontrolledbyit(excludingCMPortHoldingsandtheenterprisecontrolledit)failtoengageinorparticipateinanybusinessoractivitywhichissimilarwithandconstitutesorlikelyconstitutedirectorindirectcompetitiverelationshipwithmainbusinessconducted | 26July2018 | Effectiveuntilno-longertobetheactualcontrolleroftheCompany | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| occupation | byCMPortandtheenterprisecontrolledbyitnow;2.ChinaMerchantsGroupwilltryitsbesttopromoteenterprisescontrolledbyit(exceptforCMPortandtheenterprisecontrolledbyit)nottodirectlyorindirectlyengageinorparticipateinorassisttoengageinorparticipateinanybusinessoractivitywhichconstitutesorlikelyconstitutescompetitiverelationwithmainbusinessconductedbyCMPortandtheenterprisecontrolledbyitnowandinthefutureindependentlyortogetherwithothers;3.IncaseofdiscoveringanynewbusinessopportunitywhichconstitutesandlikelyconstitutesdirectorindirectcompetitiverelationwithmainbusinessofCMPortortheenterprisecontrolledbyit,ChinaMerchantsGrouporenterprisecontrolledbyit(exceptforCMPortandtheenterprisecontrolledbyit)willimmediatelynotifyCMPortinwrittenaswellasmakeagreatefforttopromotesuchbusinessopportunitytobeprovidedtoCMPortortheenterprisecontrolledbyitfirstlyaccordingtoreasonableandfairtermsandconditions;4.IncaseofCMPortortheenterprisecontrolledbyitwaivessuchcompetitivenewbusinessopportunityandChinaMerchantsGrouportheenterprisecontrolledbyit(exceptforCMPortandtheenterprisecontrolledbyit)engaginginsuchcompetitivebusiness,CMPortortheenterprisecontrolledbyitwillbeentitledtopurchaseanyequities,assetsandotherrightsandinterestsintheabovecompetitivebusinessfromChinaMerchantsGrouportheenterprisecontrolledbyit(exceptforCMPortandtheenterprisecontrolledbyit)onceorseveraltimesatanymomentorCMPortwillselectentrustedoperation,leasingorcontractoperationofassetsorbusinessesofChinaMerchantsGrouportheenterprisecontrolledbyit(exceptforCMPortandtheenterprisecontrolledbyit)intheabovecompetitivebusinessaccordingtothemodepermittedbynationallawsandregulations;5.WhenChinaMerchantsGroupandtheenterprisecontrolledbyit(exceptforCMPortandtheenterprisecontrolledbyit)planstotransfer,sell,lease,allowtouseortransferorallowtouseassetandbusinesswhichconstitutesorlikelyconstitutesdirectorindirectcompetitiverelationshipwithmainbusinessofCMPortortheenterprisecontrolledbyitinotherway,ChinaMerchantsGroupandtheenterprisecontrolledbyit(exceptforCMPortandtheenterprisecontrolledbyit)willprovidetherightofpriorityassignmentforCMPortortheenterprisecontrolledbyitandpromisetomakeagreatefforttopromotetheenterprisecontrolledbyChinaMerchantsGrouptoprovidetheofpriorityassignmentforCMPortortheenterprisecontrolledbyitundertheabovesituation;6.Asofthedatewhenthecommitmentletterisprovided,ChinaMerchantsGrouppromisestocompensateallactuallosses,damagesandexpensesarisingfromviolationofanyclauseinthecommitmentletterbyChinaMerchantsGrouportheenterprisecontrolledbyittoCMPortortheenterprisecontrolledbyit. | ||||
| CMG | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | Commitmentonregulatingrelated-partytransaction:1.ChinaMerchantsGroupandotherenterprisecontrolledbyitwillmakeagreatefforttoavoidandreducerelated-partytransactionbetweenCMPortandeconomicentitycontrolledbyit;2.ChinaMerchantsGroupandotherenterprisecontrolledbyitwillexercisestockholder'srightsinaccordancewithrelatedprovisionsofrelevantlawsandregulationsaswellasArticlesofAssociationofCMPortandfulfillthe | 26July2018 | Effectiveuntilno-longertobetheactualcontrolleroftheCompany | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| obligationofvoteavoidanceatthemomentofvotingforrelated-partytransactionsinvolvedbyChinaMerchantsGroupandotherenterprisecontrolledbyitatthestockholders'meeting;3.Asforrelatedtransactionwhichisinevitableoroccursduetoreasonablereason,ChinaMerchantsGroupwillcarryouttransactionpursuanttotheprincipleofopenness,fairnessandjusticeformarkettransactionandbasedonfairandreasonablemarketprice,performrelated-partytransactiondecision-makingprocessandlegallyfulfillinformationdisclosureobligationtosafeguardbenefitsofCMPortandothershareholdersofCMPortinlinewithprovisionsoflaws,regulations,normativedocumentsandArticlesofAssociationofCMPort;4.It'sensuredthatnolegitimateinterestofCMPortandothershareholdersofCMPortisdamagedbyrelated-partytransactionbasedonstatusandinfluenceofCMPort;5.ChinaMerchantsGrouppromotesotherenterprisecontrolledbyittoobservethecommitmentsetforthinSubparagraph1-4above;6.IncaseofChinaMerchantsGroupandotherenterprisecontrolledbyitviolatingtheabovecommitment,causingrightsandinterestsofCMPortanditsshareholdersaredamaged,ChinaMerchantsGroupwilltakecorrespondingcompensationresponsibilityaccordingtolaw. | |||||
| CMG | Commitmentsonhorizontalcompetition,related-partytransactionandcapitaloccupation | CommitmentaboutkeepingindependenceofCMPort:1.Afterthetransactioniscompleted,ChinaMerchantsGroupwillstrictlyobserverelatedprovisionsregardingindependenceoflistedcompaniesfromCSRCandwon'tviolatestandardoperatingproceduresofCMPortbasedonactualcontroller'sstatus,conductexcessiveinterventionofoperationandmanagementactivitiesofCMPortanditssubsidiary,embezzlebenefitsofCMPortanditssubsidiaryordamagelegitimateinterestofCMPortandothershareholders;2.ChinaMerchantsGroupwillensureCMPortisindependentfromChinaMerchantsGroupandrelatedpartiesintheaspectsofbusiness,asset,finance,personnelandinstitution;3.ChinaMerchantsGroupensuresindependenceofCMPort,ChinaMerchantsGroupandotherenterprisecontrolledbyitfailtooccupycapitalsandresourcesofCMPortbasedonviolationinanywayandwillstrictlyobserveprovisionsofrulesandregulationsforavoidingoccupationofrelatedpartyfundsfromCMPortaswellasrelatedlaws,regulationsandnormativedocuments;4.ThecommitmentlettertakeseffectasofthesignaturedateofChinaMerchantsGroupaswellislegallybindinguponChinaMerchantsGroup.ChinaMerchantsGroupensuresitwillstrictlyfulfillvariouscommitmentsinthecommitmentletterandwilltakecorrespondinglegalresponsibilityforlossesincurredtolistedCompanyduetoviolationofrelatedcommitment. | 26July2018 | Effectiveuntilno-longertobetheactualcontrolleroftheCompany | Ongoing |
| CMG | Othercommitment | CommitmentletteraboutperfectingthepropertyownershipcertificateforlandandhousepropertyofCMPortHoldingsandtheenterprisesubordinatetoit:1.ChinaMerchantsGroupwillsparenoefforttoassist,promoteanddriveCMPortHoldingsandtheenterprisesubordinatetoittostandardize,perfectandsolveownershipdefectsofpropertiessuchaslandandhouseproperty;2.ThefollowingsituationshappentoCMPortHoldingsandtheenterprisesubordinatetoitbeforecompletionofthetransaction:(1)Landuserightofownershipcertificatewhichisbeinghandled,thehousepropertyfailingtobetimelyhandled(exceptforresultsincurredbyforcemajeure,law,policy,government | 26July2018 | Effectiveuntilno-longertobetheactualcontrolleroftheCompany | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| administrationbehaviorandchangeinplanneduseofthelandinsteadofCMPortHoldingsandtheenterprisesubordinatetoit);Or(2)Landuserightofownershipcertificate,thepropertyownershipcertificatefailingtobehandled(exceptforresultsincurredbyforcemajeure,law,policy,governmentadministrationbehaviorandchangeinplanneduseofthelandofCMPortHoldingsandtheenterprisesubordinatetoit);Or(3)Incaseofnonstandardotherlanduserightandhouseproperty(exceptforresultsincurredbyforcemajeure,law,policy,governmentadministrationbehaviorandchangeinplanneduseofthelandinsteadofCMPortHoldingsandtheenterprisesubordinatetoit)andencounteringactuallosses(includingbutnotlimitedtocompensation,fine,expenditureandbenefitlost),ChinaMerchantsGroupwilltimelyandfullycompensateCMPort. | |||||
| CMG | Othercommitment | CommitmentletteraboutrealestateleasedbyCMPortHoldingsandtheenterprisesubordinatetoit:IncaseofnonstandardsituationoftheleasedpropertysignificantlyinfluencinguseofCMPortHoldingsandtheCompanysubordinatetoittoengageinoperationofnormalbusiness,ChinaMerchantsGroupwillactivelytakeeffectivemeasures(includingbutnotlimitedtoarrangingtoprovidethepropertywithidenticalorsimilarconditionstobeusedforoperationofrelatedCompany)topromotebusinessoperationofrelatedCompanytobeconductednormallyandalleviateoreliminateadverseeffect;IncaseofnonstandardoftheleasedpropertycausingCMPortHoldingsandtheenterprisesubordinatetoitproduceactualadditionalexpendituresorlosses(suchasthird-partycompensation),ChinaMerchantsGroupwillactivelycoordinateandnegotiatewithotherrelatedpartytosupportnormaloperationofCMPortHoldingsandtheenterprisesubordinatetoittothegreatextentandavoidorcontrolcontinuousenlargementofthedamage;Atthesametime,ChinaMerchantsGroupagreescompensateCMPortHoldingsandtheenterprisesubordinatetoitincashforactuallossesincurredtoCMPortHoldingsandtheenterprisesubordinatetoitforthisreasontorelieveoreliminateadverseeffect. | 26July2018 | Effectiveuntilno-longertobetheactualcontrolleroftheCompany | Ongoing |
| CMG | Othercommitment | CommitmentletteraboutallottedlandoftheenterprisesubordinatetoChinaMerchantsPortHoldingsCompanyLimitedfromChinaMerchantsGroup:Incasethattheaboveallottedlandiswithdrawnorneedstobetranslatedintoassignmentlandduetopolicyadjustmentinthefutureafterthetransactioniscompleted,ChinaMerchantsGroupwillactivelycoordinatewithCMPortandrelatedcompaniessuchasChinaMerchantsGroupInternationalPort(Qingdao)Co.,Ltd.andShantouCMPortGroupCo.,Ltd.tohandlethetransferprocedureortakeotherfeasiblecountermeasures.Incaseofanyactualloss(excludingland-transferringfeesorrent,feespaidfortakingruralland,ownershipregistrationfees,taxesandduesandotherrelatedexpensestobepaidbyChiwanWharforabove-mentionedrelatedcompaniesaccordingtoprovisionsoflawsandregulations)incurredtoCMPortorabove-mentionedrelatedcompaniesforthisreason,ChinaMerchantsGroupwilltimelyandfullycompensateactuallossincurredtoCMPortorabove-mentionedrelatedcompanies. | 26July2018 | Effectiveuntilno-longertobetheactualcontrolleroftheCompany | Ongoing |
| CMG | Othercommitment | Commitmentletteraboutundertakingtheaccreditationfeesofpropertyownershipcertificatefortheperfection | 14September | Effectiveuntilno- | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| ofthelandandhousepropertyofCMPortHoldingsandtheenterprisesubordinatetoit:IncaseofdefectivelanduserightandhousepropertyinvolvedbytheCompanysubordinatetoCMPortHoldingsonaccountofoperation(namelylanduserightandhousepropertyoftheCompanysubordinatetoCMPortHoldingswithoutcompleteownershipcertificateexistingbeforethetransactioniscompleted),incurringregistrationfeessuchastaxesanddues,compensationandfineintheprocessofperfectinglegalproceduresofdefectivelanduserightandhousepropertybythesubordinatetoCMPortHoldings,ChinaMerchantsGroupwilltimelyandfullycompensatetotheCompanysubordinatetoCMPortHoldingsforundertaking. | 2018 | longertobetheactualcontrolleroftheCompany | |||
| CMG | Othercommitment | CommitmentletteraboutrelatedmattersofCMPortafterthetransactioniscompleted:Afterthetransactioniscompleted,ChiwanWharfwillbecomeportbusinessassetmanagementheadquartersanddomesticcapitaloperationplatformofChinaMerchantsGroup,deeplyparticipateinintegrationofdomesticregionalportassetsandenlargethescaleofdomesticlistedassetstomakenetprofitofCMPortHoldings(00144.HK)enjoyedaspertherightsandinterestsintheconsolidatedstatementoflistedCompanyinrecentonefiscalyearfailtoexceed50%netprofitofconsolidatedstatementofthelistedCompanyandnetassetofCMPortHoldings(00144.HK)enjoyedinlightofrightsandinterestsintheconsolidatedstatementoflistedCompanyinrecentonefiscalyearfailtoexceed30%netassetintheconsolidatedstatementofthelistedCompanywithin3-5yearsafterthetransactioniscompleted. | 30September2018 | ThreetofiveyearsandCMGistheactualcontrolleroftheCompany | Ongoing |
| CMG | Othercommitment | ChinaMerchantsGroupandallitsdirectors,supervisorsandadministrativeofficersensurethetransactionreport,itsabstract,otherinformationprovidedforthetransactionandapplicationdocumentaretrue,accurateandcompletewithoutfalserecord,misleadingstatementorimportantomissionaswellastakeindividualandjointlegalliabilityforfalserecord,misleadingstatementorimportantomission.Iftheinformationprovidedordisclosedbythistransactionissuspectedoffalserecords,misleadingstatementsormajoromissions,andisinvestigatedbythejudicialauthoritiesorinvestigatedbytheChinaSecuritiesRegulatoryCommission(CSRC),thedirectors,supervisorsorseniormanagersofChinaMerchantsGroupdonottransferthesharesthathaveinterestsinlistedCompany,andsubmitthewrittenapplicationandstockaccountofthesuspensionofthetransfertotheBoardofDirectorsoftheCMPortwithintwotradingdaysafterreceivingthefilinginspectionnotice,andtheBoardofDirectorsshallapplyforlock-uponbehalfoftheCMGHongKongtotheStockExchangeandRegistrationandSettlementCompany.IncaseoffailingtofilealockingapplicationwithintwotransactiondaysandaftertheBoardofDirectorsisauthorizedforverification,identityinformationandaccountinformationondirectors,supervisorsoradministrativeofficersofChinaMerchantsGroupwillbedirectlysubmittedtoStockExchangeandRegistrationandSettlementCompanywithlockingapplied;IncaseofBoardofDirectorsfailingtosubmitidentityinformationandaccountinformationondirectors,supervisorsoradministrativeofficersofChinaMerchantsGrouptoStockExchangeandRegistrationandSettlementCompany,StockExchange | 26July2018 | Effectivecontinuously | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| andRegistrationandSettlementCompanywillbeauthorizedtodirectlylockrelatedshares.Incasethatthesituationofviolatinglawsandrulesisfounduponinvestigationconclusion,directors,supervisorsoradministrativeofficersofChinaMerchantsGrouppromiselockedsharesarevoluntarilyusedforcompensatingrelatedinvestors. | |||||
| CMGHongKong | Othercommitment | 1.CMGHongKongensuresrelatedinformationprovidedforthetransactionistrue,accurateandcompletewithoutfalserecord,misleadingstatementorimportantomission;2.CMGHongKongensuresthedataprovidedtoCMPortandallintermediaryorgansparticipatinginthetransactionistrue,accurateandcompleteoriginalwrittendataordatacopy.Datacopyisconsistentwithoriginaldataandsignatureandsealofallthedocumentsaretrue.Thesignatoryofsuchdocumentsislegallyauthorizedandeffectivelysignssuchdocumentswithoutanyfalserecord,misleadingstatementorimportantomission;3.CMGHongKongensuresdescriptionsandconfirmationsissuedforthetransactionistrue,accurateandcompletewithoutfalserecord,misleadingstatementorimportantomission;4.CMGHongKongensuresthatstatutorydisclosureandreportobligationhasbeenperformed,andnocontracts,agreements,arrangementsormiscellaneousthatshouldhavebeendisclosedexists;5.TheCMGHongKongmadethecommitmentthatiftheinformationprovidedordisclosedbythistransactionissuspectedoffalserecords,misleadingstatementsormajoromissions,andisinvestigatedbythejudicialauthoritiesorinvestigatedbytheChinaSecuritiesRegulatoryCommission(CSRC),itdoesnottransferthesharesthathaveinterestsinlistedCompany,andsubmitthewrittenapplicationandstockaccountofthesuspensionofthetransfertotheBoardofDirectorsoftheCMPortwithintwotradingdaysafterreceivingthefilinginspectionnotice,andtheBoardofDirectorsshallapplyforlock-uponbehalfoftheCMGHongKongtotheStockExchangeandRegistrationandSettlementCompany.IncaseoffailingtofilealockingapplicationwithintwotransactiondaysandaftertheBoardofDirectorsisauthorizedforverification,identityinformationandaccountinformationonCMGHongKongwillbedirectlysubmittedtoStockExchangeandRegistrationandSettlementCompanywithlockingapplied;IncaseofBoardofDirectorsfailingtosubmitidentityinformationandaccountinformationonCMGHongKongtoStockExchangeandRegistrationandSettlementCompany,StockExchangeandRegistrationandSettlementCompanywillbeauthorizedtodirectlylockrelatedshares.Iftheinvestigationfindsthatthereisaviolationofthelaw,CMGHongKongcommittedtolockthesharesvoluntarilyfortherelevantinvestorcompensation;6.IfCMGHongKongpromisestorelateddocument,dataandinformationprovidedinthereorganizationprocessaren'ttrue,accurateorcompleteorarewithfalserecord,misleadingstatementorimportantomission,CMGHongKongiswillingtolegallybearcorrespondinglegalresponsibility;7.IncaseofCMGHongKongviolatingtheabovepromise,incurringlossestoCMPort,CMGHongKongwilltakecorrespondingcompensationresponsibility. | 26July2018 | Effectivecontinuously | Ongoing |
| CMPID | Othercommitment | 1.CMPIDensuresrelatedinformationprovidedforthetransactionistrue,accurateandcompletewithoutfalserecord,misleadingstatementorimportantomission;2.CMPIDensuresthedataprovidedtoCMPortandall | 26July2018 | Effectivecontinuously | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| intermediaryorgansparticipatinginthetransactionistrue,accurateandcompleteoriginalwrittendataordatacopy.Datacopyisconsistentwithoriginaldataandsignatureandsealofallthedocumentsaretrue.Thesignatoryofsuchdocumentsislegallyauthorizedandeffectivelysignssuchdocumentswithoutanyfalserecord,misleadingstatementorimportantomission;3.CMPIDensuresdescriptionandconfirmationprovidedforthetransactionaretrue,accurateandcompletewithoutanyfalserecord,misleadingstatementorimportantomission;4.CMPIDensuresthatstatutorydisclosureandreportobligationhasbeenperformed,andnocontracts,agreements,arrangementsormiscellaneousthatshouldhavebeendisclosedexists;5.TheCMPIDmadethecommitmentthatiftheinformationprovidedordisclosedbythistransactionissuspectedoffalserecords,misleadingstatementsormajoromissions,andisinvestigatedbythejudicialauthoritiesorinvestigatedbytheChinaSecuritiesRegulatoryCommission(CSRC),itdoesnottransferthesharesthathaveinterestsinCMPort,andsubmitthewrittenapplicationandstockaccountofthesuspensionofthetransfertotheBoardofDirectorsoftheCMPortwithintwotradingdaysafterreceivingthefilinginspectionnotice,andtheBoardofDirectorsshallapplyforlock-uponbehalfoftheCMGHongKongtotheStockExchangeandRegistrationandSettlementCompany.Iftheapplicationforlock-upisnotsubmittedwithintwotransactiondays,theBoardofDirectorsisauthorizedtoverifyandsubmittheidentityinformationandaccountinformationofCMPIDdirectlytotheStockExchangeandRegistrationandSettlementCompanyandapplyforlock-up;IftheBoardofDirectorsfailstosubmittheidentityinformationandaccountinformationoftheCMPIDtotheStockExchangeandRegistrationandSettlementCompany,thentheStockExchangeandRegistrationandSettlementCompanyshallbeauthorizedtodirectlylocktherelevantshares.Iftheinvestigationfindsthatthereisaviolationofthelaw,CMPIDcommittedtolockthesharesvoluntarilyfortherelevantinvestorcompensation;6.IfCMPIDpromisestorelateddocument,dataandinformationprovidedinthereorganizationprocessaren'ttrue,accurateorcompleteorarewithfalserecord,misleadingstatementorimportantomission,CMPIDiswillingtolegallybearcorrespondinglegalresponsibility;7.IncaseofCMPIDviolatingtheabovecommitment,incurringlossestoCMPort,CMPIDwilltakecorrespondingcompensationresponsibility. | |||||
| CMPortHoldings | Othercommitment | 1.CMPortHoldingsensuresrelatedinformationprovidedforthetransactionistrue,accurateandcompletewithoutfalserecord,misleadingstatementorimportantomission;2.CMPortHoldingsensuresthedataprovidedtoCMPortandallintermediaryorgansparticipatinginthetransactionistrue,accurateandcompleteoriginalwrittendataordatacopy.Datacopyisconsistentwithoriginaldataandsignatureandsealofallthedocumentsaretrue.Thesignatoryofsuchdocumentsislegallyauthorizedandeffectivelysignssuchdocumentswithoutanyfalserecord,misleadingstatementorimportantomission;3.CMPortHoldingsensuresdescriptionandconfirmationprovidedforthetransactionaretrue,accurateandcompletewithoutanyfalserecord,misleadingstatementorimportantomission;4.CMPortHoldingsensuresthatstatutory | 26July2018 | Effectivecontinuously | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| disclosureandreportobligationhasbeenperformed,andnocontracts,agreements,arrangementsormiscellaneousthatshouldhavebeendisclosedexists;5.CMPortHoldingsmadethecommitmentthatiftheinformationprovidedordisclosedbythistransactionissuspectedoffalserecords,misleadingstatementsormajoromissions,andisinvestigatedbythejudicialauthoritiesorinvestigatedbytheChinaSecuritiesRegulatoryCommission(CSRC);CMPortHoldingscommittedthatifCMPortHoldingsviolatedtheabovepromise,incurringlossestoCMPort,CMPortHoldingswilltakecorrespondingcompensationresponsibility. | |||||
| CMG | Othercommitment | 1.ChinaMerchantsGroupensuresrelatedinformationprovidedforthetransactionistrue,accurateandcompletewithoutfalserecord,misleadingstatementorimportantomission;2.ChinaMerchantsGroupensuresthedataprovidedtoCMPortandallintermediaryorgansparticipatinginthetransactionistrue,accurateandcompleteoriginalwrittendataordatacopy.Datacopyisconsistentwithoriginaldataandsignatureandsealofallthedocumentsaretrue.Thesignatoryofsuchdocumentsislegallyauthorizedandeffectivelysignssuchdocumentswithoutanyfalserecord,misleadingstatementorimportantomission;3.ChinaMerchantsGroupensuresdescriptionsandconfirmationsissuedforthetransactionistrue,accurateandcompletewithoutfalserecord,misleadingstatementorimportantomission;4.ChinaMerchantsGroupensuresthatstatutorydisclosureandreportobligationhasbeenperformed,andnocontracts,agreements,arrangementsormiscellaneousthatshouldhavebeendisclosedexists;5.ChinaMerchantsGroupmadethecommitmentthatiftheinformationprovidedordisclosedbythistransactionissuspectedoffalserecords,misleadingstatementsormajoromissions,andisinvestigatedbythejudicialauthoritiesorinvestigatedbytheChinaSecuritiesRegulatoryCommission(CSRC),itdoesnottransferthesharesthathaveinterestsinCMPort,andsubmitthewrittenapplicationandstockaccountofthesuspensionofthetransfertotheBoardofDirectorsoftheCMPortwithintwotradingdaysafterreceivingthefilinginspectionnotice,andtheBoardofDirectorsshallapplyforlock-uponbehalfofChinaMerchantsGrouptotheStockExchangeandRegistrationandSettlementCompany.IncaseoffailingtofilealockingapplicationwithintwotransactiondaysandaftertheBoardofDirectorsisauthorizedforverification,identityinformationandaccountinformationofChinaMerchantsGroupwillbedirectlysubmittedtoStockExchangeandRegistrationandSettlementCompanywithlockingapplied;IncaseofBoardofDirectorsfailingtosubmitidentityinformationandaccountinformationofChinaMerchantsGrouptoStockExchangeandRegistrationandSettlementCompany,StockExchangeandRegistrationandSettlementCompanywillbeauthorizedtodirectlylockrelatedshares.Iftheinvestigationfindsthatthereisaviolationofthelaw,ChinaMerchantsGroupcommittedtolockthesharesvoluntarilyfortherelevantinvestorcompensation;6.IfChinaMerchantsGrouppromisestorelateddocument,dataandinformationprovidedinthereorganizationprocessaren'ttrue,accurateorcompleteorarewithfalserecord,misleadingstatementorimportantomission,ChinaMerchantsGroupiswillingtolegally | 26July2018 | Effectivecontinuously | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| bearcorrespondinglegalresponsibility;IncaseofChinaMerchantsGroupviolatingtheabovepromise,incurringlossestoCMPort,ChinaMerchantsGroupwilltakecorrespondingcompensationresponsibility. | ||||||
| ChiwanWharfandalldirectors,supervisorsandseniormanagement | Othercommitment | ChiwanWharfandallitsdirectors,supervisorsandadministrativeofficersensurethetransactionreport,itsabstract,otherinformationprovidedforthetransactionandapplicationdocumentaretrue,accurateandcompletewithoutfalserecord,misleadingstatementorimportantomissionaswellastakeindividualandjointlegalliabilityforfalserecord,misleadingstatementorimportantomission.Iftheinformationprovidedordisclosedbythistransactionissuspectedoffalserecords,misleadingstatementsormajoromissions,andisinvestigatedbythejudicialauthoritiesorinvestigatedbytheChinaSecuritiesRegulatoryCommission(CSRC),thedirectors,supervisors,orseniormanagersofChiwanWharfdonottransferthesharesthathaveinterestsinCMPort,andsubmitthewrittenapplicationandstockaccountofthesuspensionofthetransfertotheBoardofDirectorsoftheCMPortwithintwotradingdaysafterreceivingthefilinginspectionnotice,andtheBoardofDirectorsshallapplyforlock-uponbehalfofthemtotheStockExchangeandRegistrationandSettlementCompany.IncaseoffailingtofilealockingapplicationwithintwotransactiondaysandaftertheBoardofDirectorsisauthorizedforverification,identityinformationandaccountinformationondirectors,supervisorsoradministrativeofficersofChiwanWharfwillbedirectlysubmittedtoStockExchangeandRegistrationandSettlementCompanywithlockingapplied;IncaseofBoardofDirectorsfailingtosubmitidentityinformationandaccountinformationondirectors,supervisorsoradministrativeofficersofChiwanWharftoStockExchangeandRegistrationandSettlementCompany,StockExchangeandRegistrationandSettlementCompanywillbeauthorizedtodirectlylockrelatedshares.Incasethatthesituationofviolatinglawsandrulesisfounduponinvestigationconclusion,directors,supervisorsoradministrativeofficersofChiwanWharfpromiselockedsharesarevoluntarilyusedforcompensatingrelatedinvestors. | 26July2018 | Effectivecontinuously | Ongoing | |
| Othercommitmentsmadetominorityshareholders | ChinaNanshanDevelopment(Group)Inc. | Othercommitment | CNDGroupwillirrevocablyandunconditionallyagreesitwillensuretransfereeofsuchlanduserightanditssuccessorandassigneewillbefullyexemptedfromresponsibilityfortheabovemattersincaseofCMPortencounteringlosses,needingtobearexpensesandliabilities,undergoingclaimforcompensationorneedingtofilealawsuitduetoanyactualorpotentialillegalandunenforceableissuesincurredbylanduseagreementandrelevantdocumentssignedandtobesignedbyit. | 20March2001;18June2003;29September2004 | Effectivecontinuously | Ongoing |
| ChinaNanshanDevelopment(Group)Inc. | Othercommitment | Inordertoproperlysolvetheissueregardingtheownershipofthelandof270,692squaremeterstransferredtoCMPortbyCNDGroupasacontribution,CNDGroupherebyirrevocablyundertakesasfollows:1.CNDGroupaffirmsthehistoricalfactthatitcontributedtotherestructuringandlistingofChiwanWharfwiththerighttouse270,692squaremetersoflandin1993.Besides,itaffirmsthatthe270,692squaremetersoflandhasbeentransferredtoCMPort(formerlyknownasChiwanWharf)andtherighttousethelandisownedbyCMPort.2.CNDGroupwill | 2July2020 | Effectivecontinuously | Ongoing |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| continuekeepingtheoriginalundertakingandensurethatthesigningoftherelevantagreementwillnotdamageCMPort'srightsandinterestsof148,119squaremetersoflandtransferredin1993toCMPort(formerly,ChiwanWharf)asacontribution.3.CNDGroupwillcontinuegivingfullplaytoitsadvantagestofullysupportland-relatedauthoritiesinShenzhenCitytosecureCMPort'srighttousethe270,692squaremetersofland.Moreover,CNDGroupwillcontinuetoactivelyassistCMPortingoingthroughthecorrespondingproceduresforthechangeofownershipofpropertyrightsandperfectlegalproceduresrelatedtotherighttousetheland(e.g.,definingtheboundarylineofland,landsurveying,andclaimingforthecertificateofland).Inaddition,CNDGroupundertakestocoverallcostsincurredaccordingly(includingthelandpremium).4.AllconsequentlossestoCMPortshallbebornebyCNDGroup,shouldthelatterbreaktheaboveundertaking.Furthermore,CNDGroupwillshoulderallliabilitiesfordamage,iftheassetintegrityofthelistedcompany,CMPort,isdamaged. | ||||||
| China-AfricaDevelopmentFundCo.,Ltd. | Commitmentofshareslock-upandsharereductionplan | 1.Thecompanyhasagreednottotransferthesharessubscribedwithintwelvemonthsfromtheenddateoftheissue(whichreferstothelistingdateofthestockissued)byCMPort.IthasrequestedtheBoardofCMPorttoapplywiththeShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.(CSDC)forlockingthesharessubscribedbythecompanytomakesurethattheaforementionedsharesheldbythecompanywillnotbetransferredwithintwelvemonthsfromtheenddateoftheissue.2.Exceptforthesellpermittedbyregulatoryauthoritiesthatdoesnotconstitutenonperformanceorincompleteperformanceoftheaforementionedcommitment,thecompanyundertakesthatitwillauthorizeCSDCtotransferthefundfromthesellintoitsaccounttobeownedbyallitsshareholdersifitviolatestheaforementionedcommitment.3.Thecompanydeclaresthatitwillfaithfullyfulfillitscommitmentandbearcorrespondinglegalliabilities. | 4November2019 | 3November2020 | Expired | |
| ShenzhenInfrastructureInvestmentFundPartnership(LP) | Commitmentofshareslock-upandsharereductionplan | 1.Thecompanyhasagreednottotransferthesharessubscribedwithintwelvemonthsfromtheenddateoftheissue(whichreferstothelistingdateofthestockissued)byCMPort.IthasrequestedtheBoardofCMPorttoapplywiththeShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.(CSDC)forlockingthesharessubscribedbythecompanytomakesurethattheaforementionedsharesheldbythecompanywillnotbetransferredwithintwelvemonthsfromtheenddateoftheissue.2.Thecompanycommittedthatasnotfulfillingnonperformanceorincompleteperformanceoftheaforementionedcommitment,thecompanyshallcompensatethedirecteconomiclossofothershareholders.Thecompanyundertakesthatifitviolatestheaforementionedcommitment,itwillauthorizeCSDCtotransferthefundfromthesaleintoitsaccounttobeownedbyallshareholders.3.Thecompanydeclaresthatitwillfaithfullyfulfillitscommitmentandbearcorrespondinglegalliabilities. | 4November2019 | 3November2020 | Expired | |
| Whetherfulfilledontime | Yes | |||||
| Specificreasonsfor | N/A | |||||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
2.WherethereHadBeenanEarningsForecastforanAssetorProjectandtheReportingPeriodWasstillwithintheForecastPeriod,ExplainwhytheForecastHasBeenReachedfortheReportingPeriod.?Applicable√NotapplicableIV.OccupationoftheCompany’sCapitalbytheControllingShareholderorItsRelatedPartiesforNon-OperatingPurposes?Applicable√NotapplicableDuringtheReportingPeriod,thecontrollingshareholderoritsrelatedpartiesdidnotoccupycapitalorrepayfornon-operatingpurposes.DeloitteToucheTohmatsuCertifiedPublicAccountantsLLPissuedtheSpecialReportonOccupationoftheCompany’sCapitalbytheControllingShareholderandOtherRelatedParties,andrefertowww.cninfo.com.cnfordetails.V.ExplanationsGivenbytheBoardofDirectors,theSupervisoryBoardandtheIndependentDirectors(ifany)RegardingtheIndependentAuditor's“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVI.YoYChangestoAccountingPolicies,EstimatesandMethodsOn14April2020,theCompanyheldthe7
th
Meetingofthe9
th
BoardofDirectorsandthe7
th
Meetingofthe9
th
SupervisoryCommittee,wheretheProposalonChangesinAccountingEstimationoftheDepreciableLifeofSomeFixedAssetswasconsideredandapproved.InaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.4-FixedAssetsandtheCompany’srelatedregulations,theCompanyreviewedtheexpectedservicelifeofitsfixedassetsbasedontheirperformanceanduseconditions,anddecidedtomakeadjustmenttothedepreciablelifeofsomefixedassetstomakeitmorereasonable,thusreflectingtheCompany’sfinancialconditionsandoperatingresultsinamoreobjectiveandfairmanner.Forthespecificcontent,please
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
refertotheAnnouncementonChangesinAccountingEstimatesofDepreciationPeriodofPartialFixedAssets(AnnouncementNo.:2020-037)publishedonwww.cninfo.com.cnon16April2020.On19June2020,theMinistryofFinanceissuedProvisionsontheAccountingTreatmentoftheCOVID-19Pandemic-relatedRentalConcessionsinCaiKuai[2020]FileNo.10(hereinafterreferredtoas"FileNo.10").It'sspecifiedinFileNo.10that,forrentalconcessions,providedthatcertainconditionsaresatisfied,anenterprisecanconductaccountingtreatmentaccordingtoAccountingStandardsforBusinessEnterprisesNo.21—Leases,oradoptthesimplifiedmethodspecifiedinFileNo.10.Wheretheenterpriseadoptsthesimplifiedmethod,it'sunnecessarytoassesswhetherthereisleasechangesorre-assesstheleaseclassifications.Theenterpriseshallapplytheoptiontoallthesimilarleasecontractsandshallnotchangeitarbitrarily.Forfurtherinformation,pleasereferto(III)ChangesinSignificantAccountingPoliciesandAccountingEstimatesinPartXIIFinancialStatementsfordetails.VII.RetrospectiveRestatementsduetoCorrectionofMaterialAccountingErrorsintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIII.YoYChangestotheScopeoftheConsolidatedFinancialStatementsOn19November2020,CyberChic,asubsidiaryoftheCompany,andtheothershareholdersofCMICT(NingboPortandCITICPortInvestmentCo.,Ltd.)resolvedbywayofshareholders'resolutionstoestablishtheBudgetCommittee,andenteredintoaCooperationAgreementwithNingboPort(the“CooperationAgreement”).TheBudgetCommitteecomprisedthreedirectors.EachoftheshareholdersofCMICTnominatedonedirectortobeamemberoftheBudgetCommittee,andthedirectornominatedbyCyberChicwasthechairman.TheBudgetCommitteeisprimarilyresponsibleforapprovingCMICT'sannualbusinessplans,annualfinancialbudgetsandfinalaccounts,andafter-taxprofitdistributionplans.AnymatterstobeconsideredbytheBudgetCommitteeshallbeapprovedbyatwo-thirdsmajority.PursuanttotheCooperationAgreement,CyberChicandNingboPortwillconsultandcommunicate
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
amongthemselvestoreachconsensusbeforeexercisingtheirshareholders'rights.IfthepartiestotheCooperationAgreementcannotreachconsensusonanymatterinrelationtoCMICT’soperationsandmanagement,themattershallbedecidedinaccordancewiththeopinionofCyberChic.NoconsiderationwaspayablebyeitherpartyundertheCooperationAgreement.UponthecompletionoftheCooperationAgreement,CyberChicandNingboPorttogetherhadanover-50%interestinCMICT.Accordingly,theCompanyhasincludedCMICTintoitsconsolidatedfinancialstatementssince19November2020,andCMICThassincebecomeasubsidiaryinsteadofajointventureoftheCompany,withtheCompany’sinterestinCMICTremainingthesame.IX.EngagementandDisengagementofIndependentAuditorCurrentindependentauditor
| Nameofthedomesticindependentauditor | DeloitteToucheTohmatsuCertifiedPublicAccountantsLLP |
| TheCompany’spaymenttothedomesticindependentauditor(RMB’0,000) | 639.53 |
| HowmanyconsecutiveyearsthedomesticindependentauditorhasprovidedauditservicefortheCompany | 9 |
| Namesofthecertifiedpublicaccountantsfromthedomesticindependentauditorwritingsignaturesontheauditor’sreport | LiWeihua,ZhangMin |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany | 2 |
| Nameoftheoverseasindependentauditor(ifany) | DeloitteToucheTohmatsu |
| TheCompany’spaymenttotheoverseasindependentauditor(RMB’0,000)(ifany) | 362.26 |
| HowmanyconsecutiveyearstheoverseasindependentauditorhasprovidedauditservicefortheCompany(ifany) | 9 |
| Namesofthecertifiedpublicaccountantsfromtheoverseasindependentauditorwritingsignaturesontheauditor’sreport(ifany) | YuJianmin |
| HowmanyconsecutiveyearsthecertifiedpublicaccountantshaveprovidedauditservicefortheCompany(ifany) | 1 |
IndicatebytickmarkwhethertheindependentauditorwaschangedfortheReportingPeriod.
□Yes√NoIndependentauditor,financialadvisororsponsorengagedfortheauditofinternalcontrols:
Approvedbythe7
th
Meetingofthe9
thBoardofDirectorsin2020and2019AnnualGeneralMeetingoftheCompany,theCompanywasallowedtocontinuouslyengageDeloitteToucheTohmatsuCertifiedPublicAccountantsLLPasthe2020independentauditorfortheauditofannualfinancialstatementsandinternalcontrolinthe2020.Theauditpricefor2020annualfinancialstatementswasRMB9.6379millionandthepriceforinternalcontrolwasRMB0.38million.ThetotalexpenseonaforesaidtwoauditworkwasRMB10.0179million.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
X.PossibilityofDelistingafterDisclosureofthisReport
□Applicable√NotapplicableXI.InsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XII.MajorLegalMatters
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters
| Basicsituationoflawsuit(arbitration) | Lawsuitamount(RMB‘0,000) | Whetherformintoestimatedliabilities | Processoflawsuit(arbitration) | Trialresultsandinfluencesoflawsuit(arbitration) | Situationofexecutionofjudgmentoflawsuit(arbitration) | Disclosuredate | Disclosureindex |
| SummaryofBrazilTCPCase(note) | 21,310.97 | Yes | Inprogress | Relativelylowrisk | - | - | - |
| Summaryofothermattersnotmeetingthedisclosurestandardsformajorlawsuits(arbitrations) | 6,043.20 | No | Partwascompleted,andpartisinprogress | Relativelylowrisk | - | - | - |
Note:ThisrepresentsthesignificantcontingentliabilitiesarisingfromthelitigationsbetweenTCPanditssubsidiariesandlocaltaxauthority,employeeorformeremployeeofTCPanditssubsidiariesinBrazilatastheyearend.AccordingtothelatestestimatesoftheCompany’smanagement,thepossiblecompensationisRMB213,109,668.45butitisnotlikelytocauseoutflowofeconomicbenefitsfromtheCompany.Therefore,thecontingentliabilitiesarisingfromtheabovependinglitigationsarenotrecognizedasprovisions.Thecounter-bonificationwheretheCompanyasthebeneficiarywillbeexecutedbytheformerTCPshareholderthatdisposedtheshares.Accordingtothecounter-bonificationagreement,theformerTCPshareholderneedtomakecounter-bonificationtotheCompanyinrespectoftheabovecontingentliabilities,withthecompensationamountnotexceedingpre-determinedamountandspecifiedperiod.
XIII.PunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIV.CreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable√Notapplicable
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
XV.EquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployeesTheCompanyisimplementingthestockoptionincentiveplan,andthereviewandapprovalprocedurescarriedoutinconnectionwiththeStockOptionIncentivePlanareasfollows:
(1)Atthe2
nd
MeetingoftheNomination,RemunerationandAppraisalCommitteeofthe9
thBoardofDirectorsin2019heldon10October2019,thefollowingproposalswereconsideredandapproved,includingStockOptionIncentivePlanofCMPort(Draft)(hereinafterreferredtoasthe“StockOptionIncentivePlan(Draft)”)anditssummary,StockOptionIncentivePlanofCMPort(PhaseI)(Draft)(hereinafterreferredtoasthe“StockOptionIncentivePlan(PhaseI)(Draft)”)anditssummary,ManagementMeasuresfortheStockOptionIncentivePlanofCMPort(hereinafterreferredtoasthe“ManagementMeasuresfortheStockOptionIncentivePlan”),AppraisalMeasuresforImplementingtheStockOptionIncentivePlanandImplementationAppraisalMeasuresofStockOptionIncentivePlanbyChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoas“ImplementationAppraisalMeasuresofStockOptionIncentivePlan”).
(2)Atthe9
th
ExtraordinaryMeetingofthe9
thBoardofDirectorsin2019heldon11October2019,thefollowingproposalswerereviewedandapproved,includingStockOptionIncentivePlan(Draft)anditssummary,StockOptionIncentivePlan(PhaseI)(Draft)anditssummary,ManagementMeasuresfortheStockOptionIncentivePlan,ImplementationAppraisalMeasuresofStockOptionIncentivePlan,andProposalonRequestingtheGeneralMeetingtoAuthorizetheBoardofDirectorstoGoThroughShareIncentiveProcedures,andindependentdirectorsexpressedindependentopinions.Atthe2
ndExtraordinaryMeetingofthe9
thSupervisoryCommitteein2019heldonthesameday,thefollowingproposalswerereviewedandapproved,includingStockOptionIncentivePlan(Draft)anditssummary,StockOptionIncentivePlan(PhaseI)(Draft)anditssummary,ManagementMeasuresfortheStockOptionIncentivePlan,andImplementationAppraisalMeasuresofStockOptionIncentivePlan,andtheListofIncentiveObjectsundertheStockOptionIncentivePlan(PhaseI)wasreviewedwithopinionsexpressed.Refertotherelevantannouncements(AnnouncementNo.2019-069,No.2019-070)disclosedonwww.cninfo.com.cnfordetails.
(3)On3January2020,theCompanyreceivedApprovalontheImplementationofStockOptionIncentivePlanofCMPort(GZKF[2019]No.748)issuedbytheState-ownedAssetsSupervision
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
andAdministrationCommissionoftheStateCouncilfromChinaMerchantsGroup,theactualcontrolleroftheCompany.Inprinciple,approvalwasgiventotheCompanyforitsimplementationoftheStockOptionIncentivePlanandperformanceappraisalgoalsunderthePlan.Refertotherelevantannouncement(AnnouncementNo.2020-001)disclosedonwww.cninfo.com.cnfordetails.
(4)Atthe1
st
ExtraordinaryMeetingofthe9
th
BoardofDirectorsin2020heldon9January2020,StockOptionIncentivePlan(PhaseI)(RevisedDraft)anditssummarywerereviewedandapproved,andindependentdirectorsexpressedindependentopinions.Atthe1
stExtraordinaryMeetingofthe9
thSupervisoryCommitteein2020heldonthesameday,StockOptionIncentivePlan(PhaseI)(RevisedDraft)anditssummarywerereviewedandapprovedandListofIncentiveobjectsundertheStockOptionIncentivePlan(PhaseI)(AfterAdjustment)wasreviewedwithopinionsexpressed.Refertotherelevantannouncements(AnnouncementNo.2020-002,No.2020-003,No.2020-004)disclosedonwww.cninfo.com.cnfordetails.
(5)On20January2020,theCompanydisclosedtheAnnouncementonNotesoftheSupervisoryCommitteeontheReviewandPublicityoftheListofIncentiveObjectsundertheStockOptionIncentivePlan(PhaseI).TheSupervisoryCommitteereviewedthelistofincentiveobjectsforthefirstgrant.TheCompanypublishedthenamesandpositionsoftheincentiveobjectsforthefirstgrantofthestockoptioninitsinternalOAsystemfrom10Januaryto19January2020.Bytheendofthepublicity,theCompany’sSupervisoryCommitteehadnotreceivedanyobjectionagainsttheincentiveobjectsforthefirstgrant.Refertotherelevantannouncement(AnnouncementNo.2020-009)disclosedonwww.cninfo.com.cnfordetails.
(6)Atthe1
st
ExtraordinaryGeneralMeetingof2020heldon3February2020,thefollowingproposalswereconsideredandapproved,includingStockOptionIncentivePlan(Draft)anditssummary,StockOptionIncentivePlan(PhaseI)(RevisedDraft)anditssummary,ManagementMeasuresfortheStockOptionIncentivePlan,ImplementationAppraisalMeasuresofStockOptionIncentivePlan,andProposalonRequestingtheGeneralMeetingtoAuthorizetheBoardofDirectorstoGoThroughShareIncentiveProcedures.TheCompany’sStockOptionIncentivePlanwasapprovedandtheBoardofDirectorswasauthorizedtodeterminethegrantdate,grantstockoptiontotheincentiveobjectswhentheymeettheconditionsandgothroughallproceduresrequiredforthegrant.Onthesameday,theCompanydisclosedSelf-inspectionReportonthe
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
TradingoftheCompany’sSharesbyInsidersandIncentiveObjectsoftheStockOptionIncentivePlan(PhaseI)accordingtoitsverificationofthetradingengagedbytheinsidersandincentiveobjects.Refertotherelevantannouncement(AnnouncementNo.2020-011)disclosedonwww.cninfo.com.cnfordetails.
(7)Atthe2
ndExtraordinaryMeetingofthe9
thBoardofDirectorsin2020andthe2
ndExtraordinaryMeetingofthe9
thSupervisoryCommitteein2020heldon3February2020,theProposalontheGrantofStockOption(theFirstGrant)toIncentiveObjectsoftheStockOptionIncentivePlanoftheCompanywasconsideredandapprovedrespectively.TheCompany’sBoardofSupervisorsreviewedthelistofincentiveobjectsundertheStockOptionIncentivePlan(PhaseI)onthegrantdateandexpressedopinions,andindependentdirectorsexpressedindependentopinions.Refertotherelevantannouncements(AnnouncementNo.2020-012,No.2020-013,No.2020-014)disclosedonwww.cninfo.com.cnfordetails.
(8)On14March2020,theCompanyhascompletedregistrationforthegrantofstockoption(thefirstgrant)undertheStockOptionIncentivePlan(PhaseI).RefertotheAnnouncementonCompletionoftheGrantofStockOption(theFirstGrant)undertheStockOptionIncentivePlan(PhaseI)oftheCompany(AnnouncementNo.2020-020)disclosedonwww.cninfo.com.cnfordetails.
(9)Atthe1
stExtraordinaryMeetingofthe10
thBoardofDirectorsin2021andthe1
stExtraordinaryMeetingofthe10
thSupervisoryCommitteein2021heldon29January2021,theProposalonAdjustingtheExercisePriceoftheFirstGrantundertheStockOptionIncentivePlan(PhaseI)andtheProposalontheGrantofStockOption(theReserved)toIncentiveObjectsoftheStockOptionIncentivePlan(PhaseI)oftheCompanywereconsideredandapprovedrespectively.TheSupervisoryCommitteereviewedthelistofincentiveobjectsforthereservedstockoptionsundertheStockOptionIncentivePlan(PhaseI)onthegrantdate,andindependentdirectorsexpressedindependentopinions.Refertotherelevantannouncements(AnnouncementNo.2021-007,No.2021-008)disclosedonwww.cninfo.com.cnfordetails.
(10)On9February2021,theCompanydisclosedtheAnnouncementonNotesoftheSupervisoryCommitteeontheReviewandPublicityoftheListofIncentiveObjectsfortheReservationundertheStockOptionIncentivePlan(PhaseI)(AnnouncementNo.2021-009).TheCompanypublished
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
thenamesandpositionsoftheincentiveobjectsforreservedstockoptionsinitsinternalOAsystemfrom29January2021to8February2021.Bytheendofthepublicity,theCompany’sSupervisoryCommitteehadnotreceivedanyobjectionagainsttheincentiveobjectsforreservedstockoptions.Refertotherelevantannouncement(AnnouncementNo.2021-009)disclosedonwww.cninfo.com.cnfordetails.
(11)5March2021,theCompanyhascompletedregistrationforthegrantofstockoption(thereserved)undertheStockOptionIncentivePlan(PhaseI).RefertotheAnnouncementonCompletionoftheGrantofStockOption(theReserved)undertheStockOptionIncentivePlan(PhaseI)oftheCompany(AnnouncementNo.2021-013)disclosedonwww.cninfo.com.cnfordetails.XVI.MajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
| Relatedparty | RelationshipwiththeCompany | Typeoftransaction | Specifictransaction | Pricingprinciple | Transactionprice | Totalvalue(RMB’0,000) | As%ofthetotalvalueofallthesame-typetransactions | Approvedtransactionline(RMB’0,000) | Overtheapprovedlineornot | Wayofsettlement | Obtainablemarketpriceforsame-typetransactions | Disclosuredate | Indextodisclosedinformation |
| CHINACOSCOSHIPPINGGROUPanditssubsidiaries | Affiliatedlegalperson | Renderservice | Lease,laborservice,testingfee,etc. | Marketprice | 47,308.92 | 47,308.92 | 43.66% | 37,799.33 | Yes | Settledmonthly | 47,308.92 | 16April2020 | www.cninfo.com.cn(AnnouncementNo.2020-031) |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.anditssubsidiaries | Underthecontrolofultimateshareholder | Renderservicetorelatedpartyandleaselandtorelatedparty | Laborcost,leaseexpenseoflandandhouses | Marketprice | 8,715.03 | 8,715.03 | 7.56% | 16,127.05 | No | Settledmonthly | 8,715.03 | 16April2020 | www.cninfo.com.cn(AnnouncementNo.2020-031) |
| AntongHoldingsCo.,Ltd.anditssubsidiaries | Affiliatedlegalperson | Renderservicetorelatedpartyandreceiveservice | Laborcost,freightforwardingagent,Portservicecharge | Marketprice | 12,779.54 | 12,779.54 | 12.90% | 9,154.30 | Yes | Settledmonthly | 12,779.54 | 16April2020 | www.cninfo.com.cn(AnnouncementNo.2020-031) |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Total | -- | -- | 68,803.49 | -- | 63,080.68 | -- | -- | -- | -- | -- |
| Large-amountsalesreturnindetail | None | |||||||||
| GivetheactualsituationintheReportingPeriod(ifany)whereanestimatehadbeenmadeforthetotalvalueofcontinuingrelated-partytransactionsbytypetooccurintheReportingPeriod | TheProposalonRecognitionof2019DailyRelated-partyTransactionandtheForecastof2020DailyRelated-partyTransactionwasreviewedandapprovedonthe7thMeetingofthe9thBoardofDirectorson14April2020,whichallowedtheCompanyandsubsidiariestoconductdailybusinesstransactionswithrelated-parties,transactionsincludingofficeleasing,softwareprocurementandlaborcost.Theamountofdailyrelated-partytransactionsin2020isestimatedtobeRMB975million.Theactualamountoftheaboverelated-partiesdailytransactionswasRMB1.153billion.Duetotheactualmarketdemandandbusinessdevelopmentrequirement,thereweredifferencesexistedbecauseofthenormalmanagementadjustment,withoutmajorinfluencestothedailyoperationandperformanceoftheCompany.RefertoAnnouncementonRecognitionofDailyRelated-partyTransactionsin2020andtheForecastofDailyRelated-partyTransactionsin2021disclosedonwww.cninfo.com.cndated31March2021. | |||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | N/A | |||||||||
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable√Notapplicable
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
| Co-investor | Relatedrelationship | Nameofinvestees | Mainbusinessofinvestees | Registeredcapitalofinvestees(RMB’0,000) | Totalassetsofinvestees(RMB’0,000) | Netassetsofinvestees(RMB’0,000) | Netprofitofinvestees(RMB’0,000) |
| LiaoningPortGroupCo.,Ltd. | Undertheultimatecontrolofsameactualcontroller | ChinaMerchantsNortheastAsiaDevelopmentInvestmentCo.,Ltd. | Investmentandassetsmanagement;landdevelopmentservices;parkmanagementservice;electricity,heatpowerandwatersupply;engineeringmanagementservice;propertymanagement;plantleasing;meetings,exhibitionsandrelevantservices;managementconsultingservices.(forprojectsubjecttoapprovaloflaws,businessactivitiesareallowedtocarryoutwiththeapprovalofrelevantdepartments | 450,000 | 450,276.51 | 450,207.39 | 207.39 |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | Undertheultimatecontrolofsameactualcontroller | ChinaMerchantsNortheastAsiaDevelopmentInvestmentCo.,Ltd. | Investmentandassetsmanagement;landdevelopmentservices;parkmanagementservice;electricity,heatpowerandwatersupply;engineeringmanagementservice;propertymanagement;plantleasing;meetings,exhibitionsandrelevantservices;managementconsultingservices.(forprojectsubjecttoapprovaloflaws,businessactivitiesareallowedtocarryoutwiththeapprovalofrelevantdepartments | 450,000 | 450,276.51 | 450,207.39 | 207.39 |
| ChinaMerchantsVentureCapital | Undertheultimatecontrol | ChinaMerchantsPort(Shenzhen | Mainlyengageininvestmentsinequityoflistedandunlistedenterprises;theinvestmentdirectionoffundmainly | 60,012 | - | - | - |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| ManagementCo.,Ltd. | ofsameactualcontroller | )IndustrialInnovationPrivateEquityInvestmentFundPartnership(LimitedPartnership) | involvesinwharf-relatedindustries,technologicalinnovation,businessmodelinnovationandtradedigitalizationprojects | ||||
| ShenzhenChinaMerchantsVentureCapitalFundCenter(LimitedPartnership) | Undertheultimatecontrolofsameactualcontroller | ChinaMerchantsPort(Shenzhen)IndustrialInnovationPrivateEquityInvestmentFundPartnership(LimitedPartnership) | Mainlyengageininvestmentsinequityoflistedandunlistedenterprises;theinvestmentdirectionoffundmainlyinvolvesinwharf-relatedindustries,technologicalinnovation,businessmodelinnovationandtradedigitalizationprojects | 60,012 | - | - | - |
4.CreditsandLiabilitieswithRelatedPartiesWhethertherearecreditsandliabilitieswithnon-operatingrelatedparties
√Yes□NoCreditsreceivablewithrelatedparties
| Relatedparty | Relatedrelationship | Formingreason | Whetherthereisoccupationonnon-operatingcapitalornot | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,000) | RecoveredintheReportingPeriod(RMB’0,000) | Interestrate | InterestintheReportingPeriod(RMB’0,000) | Endingbalance(RMB’0,000) |
| ChinaMerchantsGroupFinanceCo.,Ltd. | Othercompanyunderthecontrolofthesamecontrollingshareholder | Bankdeposits | No | 89,006.52 | 953,449.44 | 885,563.54 | 1.64% | 1,707.16 | 156,892.42 |
| ChinaMerchantsBank | Theultimatecontrollingshareholderhasmajorinfluenceonit | Bankdeposits/Structuraldeposits | No | 298,084.80 | 2,619,690.22 | 2,642,778.01 | 2.03% | 2,507.79 | 274,997.01 |
| EffectsofcreditswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheabovecreditsreceivableswithrelatedpartiesweremainlydepositsinfinancialinstitutionsthathavenomajorinfluenceontheCompany’soperatingresultsandfinancialconditions. | ||||||||
Liabilitiespayablewithrelatedparties
| Relatedparty | Relatedrelationship | Formingreason | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod | RecoveredintheReportingPeriod | Interestrate | InterestintheReportingPeriod | Endingbalance(RMB’0,000) |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| (RMB’0,000) | (RMB’0,000) | (RMB’0,000) | ||||||
| ChinaMerchantsGroupFinanceCo.,Ltd. | Othercompanyunderthecontrolofthesamecontrollingshareholder | Borrowing | 121,756.34 | 318,718.02 | 121,976.02 | 4.00% | 4,021.81 | 318,498.34 |
| ChinaMerchantsBank | Theultimatecontrollingshareholderhasmajorinfluenceonit | Borrowing | 9,009.30 | 1,894 | 0 | 3.41% | 282.09 | 10,903.32 |
| EffectsofliabilitieswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheaboveliabilitiespayableswithrelatedpartiesweremainlyfinancialinstitutionloansthathavenomajorinfluenceontheCompany’soperatingresultsandfinancialconditions. | |||||||
5.OtherMajorRelated-PartyTransactions
(1)TheCompanyestablishedNortheastAsiaInvestmentthroughinvestmentstogetherwithitsrelatedpartiesLiaoningPortGroupandCMSK.TheregisteredcapitalofNortheastAsiaInvestmentisRMB4.5billion,amongwhichRMB1billionissubscribedbytheCompanyaccountingfor
22.22%oftheregisteredcapital.
(2)TheCompanyandsubsidiariesopenedtheaccountsatChinaMerchantsBank.In2020,themaximumoutstandingofdepositsatChinaMerchantsBankdidnotexceedRMB5billionandthemaximumloanbalancedidnotexceedRMB10billion.
(3)TheCompanyintendstolenditsself-raisedfundstoJinyuRongtai,ChinaMerchantsPortDevelopment(Shenzhen)Co.,Ltd.,ZhangzhouPort,andShundeNewPortthatarewholly-owned/majority-ownedsubsidiariesofCMPortHoldings,amajority-ownedsubsidiaryoftheCompany,andprovidefinancialassistancetoCMPort(Zhoushan)RoRoLogisticsCo.,Ltd.,anothermajority-ownedsubsidiaryoftheCompany,tosupplementworkingcapitalandreplaceloans.TheCompanydisclosedtheAnnouncementonFinancialAssistancetoSubsidiariesandRelated-partyTransactionson30April2020.Theabovefinancialassistancewasdeliberatedandpassedatthe4
th
ExtraordinaryMeetingofthe9
th
BoardofDirectorsin2020and2019AnnualGeneralMeetingofShareholders.Thusfar,theabovefinancialassistancehasnotbeenimplemented.
(4)TheCompany,itsrelatedparty,ChinaMerchantsVenture,andChinaMerchantsVentureFundmanagedbyChinaMerchantsVentureplantojointlyinvestandestablishChinaMerchantsPort
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
(Shenzhen)IndustryInnovationPrivateEquityInvestmentFundPartnership(LimitedPartnership)(Thisisatentativename.Theultimatenameissubjecttoindustrialandcommercialregistration.)Theinvestmentfundwillinvestinqualityprojectsinwharf-relatedindustries,theinnovationoftechnologiesandbusinessmodels,andtradedigitalization.ChinaMerchantsVenturewillserveasthefundmanager.TheAUMofthefundisRMB600.12million,whereinChinaMerchantsVenture,asthefundmanager,generalpartner,andmanagingpartnerplanstocontributeRMB120,000,whileCMPort,asalimitedpartner,andChinaMerchantsVentureFund,asalimitedpartner,intendtocontributeRMB300millioneach.ThefundplanstoengageShenzhenChiwanPortDevelopmentCo.,Ltd.,awholly-ownedsubsidiaryoftheCompany,asitsinvestmentconsultant.
(5)ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd.(CMHIT),amajority-ownedsubsidiaryoftheCompany,intendstoattractinvestors,JifaLogisticsandYingkouPortGroup,throughanincreaseincapitalandshare.JifaLogistics,DalianPortContainerDevelopmentCo.,Ltd.(DPCD),andYingkouPortGrouparemajority-ownedsubsidiariesoftheCompany'srelatedparty,LiaoningPortGroup.Particularly,JifaLogistics,DPCD,andYingkouPortGroupwilluse29.40%,49.63%oftheirsharesinDPN,and100%oftheequityinYingkouPortInformationTechnologyCo.,Ltd.(YPIT)respectivelytoincreasethecapitalofCMHIT.Uponcompletionofthiscapitalincrease,theregisteredcapitalofCMHITwillbechangedtoRMB87,848,200.TheequityratiosoftheCompany,CMPortHoldings,JifaLogistics,DPCD,andYingkouPortGroupinCMHITwillbecome13.18%,43.74%,13.26%,22.38%,and7.44%,respectively.ThesumoftheequityratiosoftheCompanyandCMPortHoldingswillreach56.92%,whilethatoftherestshareholderswillreach43.08%.CMHITwillremainamajority-ownedsubsidiaryoftheCompany.DPNandYPITwillbecomeCMHIT'smajority-ownedsubsidiaryandwholly-ownedsubsidiary,respectively.
(6)CMHD,anindirectwholly-ownedsubsidiaryofCMPortHoldingsthatisamajority-ownedsubsidiaryoftheCompany,proposestojointlyinvesttoincorporateRSWinDjibouti,togetherwithOHD,anindirectwholly-ownedsubsidiaryofDafengInternationalCo.,Ltd.thatisawholly-ownedsubsidiaryofthecompany'srelatedparty,CMSK,andDNC,awholly-ownedsubsidiaryofGreatHornInvestmentHoldingS.A.S.,anon-relatedpartyoftheCompany.Theregisteredcapitalof
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
RSWinthefirstphasewillbetheamountinDJFequivalenttoUSD14,000.DNC,CMHD,andOHDwillhold60%,23.5%,and16.5%oftheequity,respectively.Inthisphase,DNC,CMHD,andOHDwillcontributeUSD8,400,USD3,290,andUSD2,310withtheirownfunds.UponregistrationandincorporationofRSW,DNC,CMHD,andOHDwillraisetheregisteredcapitalofRSW.TheywillstartthesecondphaseofcontributionofUSD120millionintotaltoRSW.Specifically,DNC,CMHD,andOHDwillcontributeUSD72million,USD28.2million,andUSD19.8million,withtheirequityratioswillremainunchanged.Informationonthedisclosurewebsiteforcurrentannouncementsonsignificantrelated-partytransactions:
| Nameofprovisionalreports | Disclosuredate | Website |
| AnnouncementonEstablishingaJointVentureandRelated-partyTransactionjointlywithRelatedPartiesthroughInvestments | 7April2020 | www.cninfo.com.cn(AnnouncementNo.2020-025) |
| AnnouncementonDepositandLoanofRelated-partyTransactionin2020atChinaMerchantsBank | 16April2020 | www.cninfo.com.cn(AnnouncementNo.2020-032) |
| AnnouncementonFinancialAssistanceandRelated-partyTransactiontotheSubsidiary | 30April2020 | www.cninfo.com.cn(AnnouncementNo.2020-045) |
| AnnouncementonEstablishingaInvestmentFundandRelated-partyTransactionjointlywithRelatedPartiesthroughInvestments | 1December2020 | www.cninfo.com.cn(AnnouncementNo.2020-085) |
| AnnouncementonCapitalIncreaseintheSubsidiaryandRelated-partyTransactionbytheRelatedParties | 19December2020 | www.cninfo.com.cn(AnnouncementNo.2020-089) |
| AnnouncementonEstablishingaJointVentureandRelated-partyTransactionbytheMajority-ownedSubsidiaryjointlywithRelatedPartiesthroughinvestments | 30December2020 | www.cninfo.com.cn(AnnouncementNo.2020-091) |
XVII.MajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)EntrustmentDetailsofentrustmentOn13December2018,theCompanyheldthe10
th
ExtraordinaryMeetingofthe9
thBoardofDirectors,onwhichtheProposalonSigningCustodyAgreementofEquityofLiaoningPortGroupCo.,Ltd.betweentheCompanyandChinaMerchants(Liaoning)PortDevelopmentCo.,Ltd.wasreviewedandapproved.TheCompanywasallowedtosigntheCustodyAgreementofEquityofLiaoningPortGroupCo.,Ltd.withChinaMerchants(Liaoning)PortDevelopmentCo,Ltd.,the
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
indirectwholly-ownedsubsidiaryofCMG,andmadeanappointmentthatChinaMerchants(Liaoning)PortDevelopmententrustedall49.9%sharesofLiaoningPortGroupCo.,Ltd.heldbyitasof13December2018totheCompanyformanagement.Projectwhichgeneratesprofitorlossreachingover10%oftotalprofitsoftheCompanyduringtheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.Majorguarantees
(1)Guarantees
Unit:RMB’0,000
| GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| TerminalLinkSAS | N/A | 7,100.40 | 11June2013 | 7,100.40 | Generalguarantee | About20years | Not | Not |
| KHORAMBADOFZCO | 30March2019 | 18,791.78 | 24May2019 | 11,312.58 | Joint-liability | About13years | Not | Yes |
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(A3) | 25,892.18 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(A4) | 18,412.98 | |||||
| GuaranteebetweentheCompanytoitssubsidiaries | ||||||||
| Obligor | Disclosuredateoftheguarantee | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelated |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| lineannouncement | partyornot | |||||||
| ChiwanWharfHoldings(HongKong)Limited | 16April2020 | 400,000.00 | 28July2020 | 150,000.00 | Joint-liability | About1year | Not | Not |
| ZhanjiangPort(Group)Co.,Ltd. | 16April2020 | 200,000.00 | - | - | - | - | - | - |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 600,000 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | 150,000 | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 600,000 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 150,000 | |||||
| Guaranteesprovidedbetweensubsidiaries | ||||||||
| Obligor | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ChinaMerchantsInternationalTerminal(Qingdao)Co.,Ltd. | 16April2020 | 59,010.00 | - | - | - | - | - | - |
| ShenzhenJinyuRongtaiInvestmentDevelopmentCo.,Ltd. | N/A | 80,000.00 | 12January2017 | 72,000.00 | Joint-liability | About10years | Not | Not |
| ChinaMerchantsInternational(China)InvestmentCo.,Ltd. | N/A | 2,500.00 | 30June2016 | 2,500.00 | Joint-liability | About10years | Not | Not |
| ChinaMerchantsFinanceCompanyLimited | 4May2012 | 326,246.24 | 4May2012 | 326,246.24 | Generalguarantee | About10years | Not | Not |
| ChinaMerchantsFinanceCompanyLimited | 3August2015 | 326,246.24 | 3August2015 | 326,246.24 | Generalguarantee | About10years | Not | Not |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| CMHIFinance(BVI)Co.,Ltd | 6August2018 | 587,243.23 | 6August2018 | 587,243.23 | Generalguarantee | About5years | Not | Not |
| CMHIFinance(BVI)Co.,Ltd | 6August2018 | 391,495.49 | 6August2018 | 391,495.49 | Generalguarantee | About10years | Not | Not |
| CMHIFinance(BVI)Co.,Ltd | 26September2020 | 555,000.00 | 9October2020 | 391,495.49 | Generalguarantee | About3years | Not | Not |
| 130,498.50 | Generalguarantee | About5years | Not | Not | ||||
| COLOMBOINTERNATIONALCONTAINERTERMINALSLIMITED | N/A | 228,307.12 | 16September2012 | 6,577.87 | Generalguarantee | About13years | Not | Not |
| COLOMBOINTERNATIONALCONTAINERTERMINALSLIMITED | N/A | 9,787.39 | 16September2012 | 9,787.39 | Generalguarantee | Infinite | Not | Not |
| COLOMBOINTERNATIONALCONTAINERTERMINALSLIMITED | N/A | 16,312.31 | 16September2012 | 16,312.31 | Generalguarantee | Infinite | Not | Not |
| LomeContainerTerminalCo.,Ltd. | N/A | 8,024.99 | June2015 | 1,376.29 | Generalguarantee | About9years | Not | Not |
| LomeContainerTerminalCo.,Ltd. | N/A | 8,024.99 | June2015 | 1,376.29 | Generalguarantee | About9years | Not | Not |
| LomeContainerTerminalCo.,Ltd. | N/A | 8,024.99 | June2015 | 1,376.29 | Generalguarantee | About9years | Not | Not |
| ChinaMerchantsPortDevelopment(Shenzhen)Co.,Ltd. | N/A | 320,000.00 | 31July2017 | 58,000.00 | Joint-liability | About5years | Not | Not |
| TCP-TERMINALDECONTElNERESDEPARANAGUAS/A. | N/A | 37,653.00 | 19April2018 | 23,329.80 | Generalguarantee | About6years | Not | Not |
| TCP-TERMINALDECONTElNERESDEPARANAGUAS/A. | N/A | 53,724.18 | 7November2016 | 53,724.18 | Generalguarantee | About6years | Not | Not |
| ShenzhenHaixingHarbor | 30March2019 | 327,000.00 | 26June2019 | 16,150.08 | Joint-liability | About18years | Not | Not |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| DevelopmentCo.,Ltd. | ||||||||
| ZhanjiangPort(Group)Co.,Ltd. | 16April2020 | 80,000.00 | - | - | - | - | - | - |
| HambantotaInternationalPortGroup(Pvt)Ltd. | 30December2020 | 231,559.00 | - | - | - | - | - | - |
| CHINAMERCHANTSHOLDINGS(DJIBOUTI)FZE | 30December2020 | 18,441.00 | - | - | - | - | - | - |
| TCP-TERMINALDECONTElNERESDEPARANAGUAS/A. | 26September2020 | 35,000.00 | - | - | - | - | - | - |
| KongRiseDevelopmentLimited | 16April2020 | 110,000.00 | - | - | - | - | - | - |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(C1) | 1,089,010.00 | TotalactualamountofsuchguaranteesintheReportingPeriod(C2) | 521,993.98 | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(C3) | 3,819,600.17 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(C4) | 2,415,735.67 | |||||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 1,689,010.00 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 671,993.98 | |||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 4,445,492.35 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 2,584,148.65 | |||||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 69.62% | |||||||
| Ofwhich: | ||||||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 11,312.58 | |||||||
| Balanceofdebtguaranteesprovideddirectlyorindirectly | 2,452,091.74 | |||||||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| forobligorswithanover70%debt/assetratio(E) | |
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 728,258.34 |
| Totalofthethreeamountsabove(D+E+F) | 3,191,662.65 |
| JointresponsibilitiespossiblyborneintheReportingPeriodforundueguarantees(ifany) | None |
| Provisionofexternalguaranteesinbreachoftheprescribedprocedures(ifany) | None |
Particularsofguaranteesadoptingcomplexmethods
□Applicable√Notapplicable
(2)IrregularitiesinProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.CashEntrustedtoOtherEntitiesforManagement
(1)CashEntrustedforWealthManagement
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)EntrustedLoansOverviewofentrustedloansintheReportingPeriod
Unit:RMB’0,000
| Amount | Capitalresources | Unduebalance | Overdueamount |
| 3,430 | Self-ownedfunds | 3,430 | 0 |
Particularsofentrustedloanswithsinglesignificantamountorlowsecurity,badliquidity,andnocapitalpreservation
□Applicable√NotapplicableWhetherthereisthecasewheretheprincipalcannotberecoveredatmaturityorothercasewhichmaycauseimpairmentforentrustedloans
□Applicable√Notapplicable
4.ContinuingMajorContracts
□Applicable√Notapplicable
5.OtherMajorContracts
□Applicable√Notapplicable
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
NosuchcasesintheReportingPeriod.XVIII.CorporateSocialResponsibilities
1.FulfillmentofSocialResponsibilitiesAlwaysupholdingtheprincipleofsustainabledevelopmentandperformingitssocialresponsibilitiesproactively,theCompanypromotesitssustainabledevelopmentwitheffortsincontinuouslystrengtheningenvironmentgovernance,safeguardingtherightsandinterestsofitsemployees,attachingimportancetooccupationalhealth,participatingincharitableactivities,andrespondingtotargetedpovertyalleviation.TheCompanyisalwayscommittedtotakeonhistoricalmissionsandhasastrongsenseofsocialresponsibilities.Duringourjourneyofgrowthanddevelopment,weneversteerawayfromtheoriginalgoal.Wetaketheleadtoaddresssocialproblems,continuetoseekforthematchingpointformutualdevelopmentwiththesocietyandexploreappropriatemodelsforconductingcharitablebusinessthatmeetstheneedsofthecurrentgeneration.Byleveragingourcorestrengthstolaunchprofessionalcharitableactivities,supportregionaldevelopmentandpreservefinecultures,wewillincorporatesocialdevelopmentneedsintoourdailyoperationactivitiesandjoinhandswithevenmorepartnerstocreateaharmonioussocietyandpromotesocialprogress.RefertoCorporateSocialResponsibilityReportofChinaMerchantsPortGroupCo.,Ltd.in2020forthefulfillmentofsocialresponsibilitiesintheReportingPeriodfordetails.
2.MeasuresTakenforTargetedPovertyAlleviation
(1)PlanofTargetedPovertyAlleviationIn2020,theCompanyexertedmultipleeffortsforpovertyalleviation.First,itvigorouslyimplementedthenationalstrategyof"eradicatingpovertyinChina".Second,itadheredtothegeneralideasandrequirementsofChinaMerchantsGroup(CMG)forpovertyalleviation.Third,itactivelyparticipatedineducation-andindustry-basedpovertyalleviationandinfrastructureconstruction.Fourth,theCompanyearnestlytackleddifficultiesinpovertyalleviation.Fifth,along-actingmechanismforpovertyalleviationwasformulated.Lastly,theannualplanforpovertyalleviationwasimplemented.Lookingahead,theCompanywillrespondtothecallofthecentralgovernment,continuedrivingruralrevitalization,andconsolidatetheresultsofpovertyalleviation.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Suchcombinationofpovertyalleviationresultsandruralrevitalizationwillbeeffectivelyboostruralrevitalization.
(2)OverviewofAnnualTargetedPovertyAlleviationDuringtheepidemicin2020,theCompanyspentRMB3.76milliononpurchasingagriculturalproductsfrompoverty-strickenareasthroughtheagriculture-promotingbrand,"27°Nong",includingtarosfromQichunCounty,Hubei,mineralwaterfromYechengCounty,Xinjiang,andWudingandYongdeCounties,Yunnan.Meanwhile,theCompanyadoptedseveralmeasures,suchaspovertyalleviationbasedonindustry,employment,education,health,andconsumptionaswellashelpingandsupportingprojects,topushtargetedpovertyalleviationforward.Itnotonly"gavefishtothepoor",butalso"taughtthemhowtofish".Itassisteddesignatedpoverty-strickenvillagesingettingridofpoverty.
(3)ResultsofTargetedPovertyAlleviationSincetheinitiationoftargetedpovertyalleviation,theCompanyhasenthusiasticallyrespondedtotheChinaMerchantsGroupbysupportingfourdesignatedpoverty-strickencounties,namely,WeiningCounty,Guizhou,QichunCounty,Hubei,andYechengandShacheCounties,Xinjiang.(In2020,thelatterthreecountieswereincludedinthelistofcountiesrequiringstrictsupervisionandunitedeffortsinfightingpoverty.)Inthemeantime,theCompanyactivelyguideditssubordinateenterprisestoperformtargetedpovertyalleviation.Forinstance,ZhanjiangPorthashelped"MingliVillage"shakeoffpoverty:All121peoplein43poverty-strickenhouseholdsmetthe"EightCriteria"ofPovertyElimination(sourceofincome,house,basicmedicalsecurity,compulsoryeducation,roads,drinkingwater,electricity,andTV)forbeingliftedoutofpoverty.AnnualpercapitaincomesurgedfromlessthanRMB3,500tooverRMB13,000.Thepovertyeliminationratewas100%.ThespecificinputsandresultsoftheCompanyregardingthepovertyalleviationin2020areasfollows:
| Index | Unitofmeasurement | Amount/implementation |
| I.Overallsituation | - | - |
| Ofwhich:1.Fund | RMB’0,000 | 506 |
| 2.Materialsconvertedtocash | RMB’0,000 | - |
| II.Subiteminvestment | - | - |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| 1.Industrialdevelopmentpovertyalleviation | - | - |
| Ofwhich:1.1Typeofplanofindustrialdevelopmentpovertyalleviation | - | Agricultureandforestryindustrialpovertyalleviation |
| 1.2Numberofplanofindustrialdevelopmentpovertyalleviation | Unit | 2 |
| 1.3Numberofpersonsoutofpovertywhichwerehelpedtosetupfilecard | Person | 121 |
| 2.Transferemploymentpovertyalleviation | - | - |
| 2.1Numberofpersonsofvocationaltraining | Person | - |
| 3.Relocationpovertyalleviation | - | - |
| 4.Educationalpovertyalleviation | - | - |
| Ofwhich:4.1Investmentamountforpoorstudentssupported | RMB’0,000 | 46 |
| 4.2Numberofpoorstudentssupported | Person | 23 |
| 5.Healthcarepovertyalleviation | - | - |
| 6.Ecologicalprotectionpovertyalleviation | - | - |
| 7.Basiclivingstandardguarantee | - | - |
| Ofwhich:7.1Investmentamountforthreekindsofleft-behindperson | RMB’0,000 | - |
| 7.2Assistantnumberofthreekindsofleft-behindperson | Person | - |
| 8.Socialpovertyalleviation | - | - |
| 8.1Investmentamountoftargetedpovertyalleviation | RMB’0,000 | - |
| 9.Otherplans | - | - |
| Ofwhich:9.1Investmentamount | RMB’0,000 | 460 |
| 9.2Notes | Purchasingagriculturalproducts,povertyalleviationofthepoorest,infrastructureconstruction,etc. | |
| III.Awardsreceived(content,level) | - | In2020,thepovertyalleviationtaskforcestationedinMingliVillagemadeupofZhanjiangPortandZhanjiangMunicipalDevelopmentandReformBureaureceivedthecommendationfromZhanjiangLeadingGroupforPovertyAlleviationandDevelopmentandwasawardedthetitleof“2019ZhanjiangMunicipalAdvancedUnitforPovertyAlleviationWork”. |
3.IssuesRelatedtoEnvironmentalProtectionWhethertheCompanyoranyofitssubsidiariesisidentifiedasamajorpolluterbytheenvironmentalprotectionauthorities?No.TheCompanystrictlyconformedtolawsandregulationsrelatedtoenvironmentalprotection,revisedandperfectedmanagementpoliciesforenvironmentalprotection,organizedtrainingonenvironmentalprotection,andassessedenvironmentalrisks.What'smore,itintensifiedon-sitemanagementandcontrol,reinforcedroutineinspectionoverenvironmentalprotection,and
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
strengthenedenvironmentalprotectionassessmenttofurtherimproveenvironmentalprotectionmanagement.ThephilosophyofgreendevelopmentisdeeplyrootedintheCompany.Theemissionofallpollutantsisstrictlycontrolledbylaw.Pollutantdisposaliscompliant.Energy-savingtechnologies,suchasthe"smarttransformationofthebucket-wheelstackerreclaimer",the"smartbulkcargocontinuousconveyorsystem",and"shore-basedpowersupplytoships",havebeendevelopedandappliedtoconstantlyenhanceenergyefficiency.Greenandlow-carbonportsarecreatedtoboostglobalclimategovernance.Furthermore,biodiversityprotectionpracticessuchasthemonitoring,investigation,andcompensationofthemarineecologywerecarriedout.TheCompanycreatedgreenportsofharmoniousco-existencewithnature.Italsocooperatedwithmultiplepartiesinthegreenfieldtoimprovesustainabledevelopment.FortheCompany'seffortsofenvironmentalprotectionduringtheReportingPeriod,pleaseseetheCorporateSocialResponsibilityReportofCMPortfor2020.XIXOtherSignificantEventsInformationDisclosureIndexIntheReportingPeriod,theCompanydisclosedthefollowingsignificanteventsonSecuritiesTimes,ShanghaiSecuritiesNews,TaKungPao(HK),andwww.cninfo.com.cn:
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| AnnouncementNo. | Date | Title |
| 2020-001 | 3January2020 | AnnouncementonApprovalofStockOptionIncentivePlanbyState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil |
| 2020-002 | 10January2020 | AnnouncementonResolutionsofthe1stSpecialMeetingofthe9thBoardofDirectorsin2020 |
| 2020-003 | 10January2020 | AnnouncementonResolutionsofthe1stSpecialMeetingofthe9thSupervisoryCommitteein2020 |
| 2020-004 | 10January2020 | AnnouncementonNotesandRevisionofStockOptionIncentivePlanofChinaMerchantsPortGroupCo.,Ltd.(PhaseI)(RevisedDraft)anditsAbstract |
| 2020-005 | 10January2020 | ReminderofConveningthe1stExtraordinaryGeneralMeetingof2020 |
| 2020-006 | 10January2020 | ReportofthePublicCallforProxyVotingRightsofIndependentDirectors |
| 2020-007 | 16January2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofDecember2019 |
| 2020-008 | 20January2020 | AnnouncementonanEstimatedGrowthin2019AnnualResults |
| 2020-009 | 20January2020 | AnnouncementonNotesoftheSupervisoryCommitteeontheReviewandPublicityoftheListofIncentiveObjectsundertheStockOptionIncentivePlan(PhaseI) |
| 2020-010 | 22January2020 | AnnouncementontheChangeoftheCompany’sRegisteredInformationwiththeIndustrialandCommercialAdministration |
| 2020-011 | 4February2020 | AnnouncementonResolutionsofthe1stExtraordinaryGeneralMeetingof2020 |
| 2020-012 | 4February2020 | AnnouncementonResolutionsofthe2ndSpecialMeetingofthe9thBoardofDirectorsin2020 |
| 2020-013 | 4February2020 | AnnouncementonResolutionsofthe2ndSpecialMeetingofthe9thSupervisoryCommitteein2020 |
| 2020-014 | 4February2020 | AnnouncementontheGrantofStockOption(theFirstGrant)toIncentiveObjectsoftheStockOptionIncentivePlanoftheCompany |
| 2020-015 | 4February2020 | Self-inspectionReportontheTradingoftheCompany’sSharesbyInsidersandIncentiveObjectsoftheStockOptionIncentivePlan(PhaseI) |
| 2020-016 | 4February2020 | AnnouncementonResignationofChairmanoftheBoardandElectionofNewChairmanoftheBoard |
| 2020-017 | 14February2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofJanuary2020 |
| 2020-018 | 21February2020 | ReminderoftheIssuanceof2020PhaseISuper-short-termFinancingBonds |
| 2020-019 | 27February2020 | AnnouncementonIssuedResultof2020PhaseISuper-short-termFinancingBonds |
| 2020-020 | 14March2020 | AnnouncementonCompletionoftheGrantofStockOption(theFirst |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Grant)undertheStockOptionIncentivePlan(PhaseI)oftheCompany | ||
| 2020-021 | 14March2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofFebruary2020 |
| 2020-022 | 30March2020 | 2019AnnualResultsPreview |
| 2020-023 | 30March2020 | AnnouncementontheDisclosureofthe2019AnnualResultsbytheMajority-OwnedSubsidiary(Unaudited) |
| 2020-024 | 7April2020 | AnnouncementonResolutionsofthe3rdSpecialMeetingofthe9thBoardofDirectorsin2020 |
| 2020-025 | 7April2020 | AnnouncementonEstablishmentJointVenturesbyJointInvestmentwithRelatedPartyandRelated-partyTransactions |
| 2020-026 | 8April2020 | AnnouncementonRetirementandApplicationofResignationofEmployeeSupervisor |
| 2020-027 | 11April2020 | 2020FirstQuarterPerformanceForecast |
| 2020-028 | 16April2020 | AnnouncementonResolutionsofthe7thMeetingofthe9thBoardofDirectors |
| 2020-029 | 16April2020 | AnnouncementonResolutionsofthe7thSpecialMeetingofthe9thSupervisoryCommittee |
| 2020-030 | 16April2020 | Abstractof2019AnnualReport(ChineseVersion)Abstractof2019AnnualReport(EnglishVersion) |
| 2020-031 | 16April2020 | AnnouncementontheConfirmationoftheContinuingRelated-PartyTransactionsin2019andtheEstimationofSuchTransactionsin2020 |
| 2020-032 | 16April2020 | AnnouncementontheRelated-PartyTransactionRegardingMakingDepositsinandObtainingLoansfromChinaMerchantsBankin2020 |
| 2020-033 | 16April2020 |
| 2020-034 | 16April2020 | Announcementon2019ProfitDistributionPlan |
| 2020-035 | 16April2020 | SpecialReportonDepositandUsageofRaisedFundin2019 |
| 2020-036 | 16April2020 | AnnouncementonReappointmentofAccountingFirmin2020 |
| 2020-037 | 16April2020 | AnnouncementonChangesinAccountingEstimatesofDepreciationPeriodofPartialFixedAssets |
| 2020-038 | 16April2020 | AnnouncementonProvidingFinancialAidbyMajority-ownedSubsidiaries |
| 2020-039 | 16April2020 | AnnouncementontheDisclosureofthe2019AnnualResultsbyaMajority-OwnedSubsidiary |
| 2020-040 | 16April2020 | AnnouncementontheOnlineInvestorCommunicationonthe2019AnnualResultstoBeHeld |
| 2020-041 | 16April2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofMarch2020 |
| 2020-042 | 24April2020 | ReminderoftheIssuanceof2020PhaseIISuper-short-termFinancingBonds |
| 2020-043 | 30April2020 | AnnouncementontheResolutionsofthe4thExtraordinaryMeetingof |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| the9thBoardofDirectorsof2020 | ||
| 2020-044 | 30April2020 | TheTextoftheFirstQuarterReport2020(ChineseVersion)TheTextoftheFirstQuarterReport2020(EnglishVersion) |
| 2020-045 | 30April2020 | AnnouncementonProvidingFinancialAidforSubsidiariesandRelated-partyTransactions |
| 2020-046 | 30April2020 | ReminderofConveningthe2019AnnualGeneralMeeting |
| 2020-047 | 30April2020 | AnnouncementonResignationofChiefFinancialOfficer |
| 2020-048 | 6May2020 | AnnouncementonIssueResultsof2020PhaseIISuper-short-termFinancingBonds |
| 2020-049 | 16May2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofApril2020 |
| 2020-050 | 23May2020 | AnnouncementonResolutionsofthe2019AnnualGeneralMeeting |
| 2020-051 | 23May2020 | AnnouncementonResolutionsofthe1stMeetingofthe10thBoardofDirectors |
| 2020-052 | 23May2020 | AnnouncementonResolutionsofthe1stMeetingofthe10thSupervisoryCommittee |
| 2020-053 | 23May2020 | AnnouncementonCompletionofGeneralElectionoftheBoardofDirectorsandSupervisoryCommitteeandAppointmentofSeniorExecutivesandSecuritiesAffairsRepresentatives |
| 2020-054 | 2June2020 | ReminderoftheIssuanceof2020PhaseIIISuper-short-termFinancingBonds |
| 2020-055 | 8June2020 | AnnouncementonIssueResultsof2020PhaseIIISuper-short-termFinancingBonds |
| 2020-056 | 12June2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofMay2020 |
| 2020-057 | 9July2020 | Announcementon2019DividendsDistributionImplementation |
| 2020-058 | 11July2020 | AnnouncementonanEstimatedGrowthintheH12020Results |
| 2020-059 | 11July2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofJune2020 |
| 2020-060 | 28July2020 | ReminderoftheIssuanceofSupportLettertoAntongHoldingsCo.,Ltd. |
| 2020-061 | 15August2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofJuly2020 |
| 2020-062 | 15August2020 | AnnouncementonNewMediaforInformationDisclosure |
| 2020-063 | 29August2020 | AnnouncementonResolutionsofthe2ndMeetingofthe10thBoardofDirectors |
| 2020-064 | 29August2020 | AnnouncementonResolutionsofthe2ndMeetingofthe10thSupervisoryCommittee |
| 2020-065 | 29August2020 | AbstractofInterimReport2020AbstractofInterimReport2019(EnglishVersion) |
| 2020-066 | 29August2020 | SpecialReportonDepositandUsageofRaisedFundinH12020 |
| 2020-067 | 29August2020 | AnnouncementontheDisclosureofthe2020InterimResultsbyaMajority-OwnedSubsidiary |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| 2020-068 | 29August2020 | AnnouncementontheOnlineInvestorCommunicationonthe2020InterimResults |
| 2020-069 | 15September2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofAugust2020 |
| 2020-070 | 26September2020 | AnnouncementonAdjustingtheGuaranteeLineamongSubsidiaries |
| 2020-071 | 10October2020 | AnnouncementontheIssuanceofOverseasDollarBondsbytheWholly-ownedSubsidiaryoftheMajority-ownedSubsidiary |
| 2020-072 | 15October2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofSeptember2020 |
| 2020-073 | 22October2020 | AnnouncementontheAdditionalIssuanceofOverseasDollarBondsbytheWholly-ownedSubsidiaryoftheMajority-ownedSubsidiary |
| 2020-074 | 31October2020 | AnnouncementonResolutionsofthe1stSpecialMeetingofthe10thBoardofDirectorsin2020 |
| 2020-075 | 31October2020 | TheTextoftheThirdQuarterReport2020TheTextoftheThirdQuarterReport2020(EnglishVersion) |
| 2020-076 | 2November2020 | ReminderofAssetAcquisitionandSupportingFundRaisingbyShareIssuanceandtheRelated-partyTransactionRegardingtheIssuanceofRestrictedSharesforRaisingSupportingFunds |
| 2020-077 | 5November2020 | AnnouncementonVoluntaryInformationDisclosureoftheJointStockCompanyFormallyBeingtheReorganizationInvestorofAntongHoldingsCo.,Ltd. |
| 2020-078 | 12November2020 | ReminderofIssuance2020PhaseIVSuper&Short-termCommercialPaper |
| 2020-079 | 14November2020 | AnnouncementonIssueResultsof2020PhaseIVSuper&Short-termCommercialPaper |
| 2020-080 | 14November2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofOctober2020 |
| 2020-081 | 19November2020 | AnnouncementontheDuePaymentof2020PhaseISuper&Short-termCommercialPaper(EpidemicPreventionandControlBond) |
| 2020-082 | 1December2020 | AnnouncementonResolutionsofthe2ndSpecialMeetingofthe10thBoardofDirectorsin2020 |
| 2020-083 | 1December2020 | AnnouncementonResolutionsofthe2ndSpecialMeetingofthe10thSupervisoryCommitteein2020 |
| 2020-084 | 1December2020 | AnnouncementonCashManagementwithIdleRaisedFunds |
| 2020-085 | 1December2020 | AnnouncementonEstablishinganInvestmentFundandRelated-partyTransactionJointlywithRelatedPartiesthroughInvestments |
| 2020-086 | 4December2020 | AnnouncementonParticipationof2020OnlineCollectiveReceptionActivityforinvestorsofShenzhenHonestandTrustworthyandRespectableListedCompanies |
| 2020-087 | 16December2020 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofNovember2020 |
| 2020-088 | 19December2020 | AnnouncementonResolutionsofthe3rdSpecialMeetingofthe10thBoardofDirectorsin2020 |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| 2020-089 | 19December2020 | AnnouncementonCapitalIncreaseintheSubsidiaryandRelated-partyTransactionbyRelatedParties |
| 2020-090 | 30December2020 | AnnouncementonResolutionsofthe4thSpecialMeetingofthe10thBoardofDirectorsin2020 |
| 2020-091 | 30December2020 | AnnouncementonEstablishingaJointVentureandRelated-partyTransactionbyMajority-ownedSubsidiaryJointlywithRelatedPartiesthroughInvestments |
| 2020-092 | 30December2020 | AnnouncementonAdjustingtheGuaranteeLineamongSubsidiaries |
XXSignificantEventsofSubsidiariesOn25November2019,CMPortHoldingssignedamemorandumofagreementwithCMA,accordingtowhich,CMAintendedtotransfertheequityassetsof10portsitheldtoTerminalLink(TL).Tocompletethetransfer,CMPortHoldingswouldprovideTLwithafinancingofnomorethanUS$968million,includingguaranteedlong-termloansofnomorethanUS$500millionwithatermofeightyearsandmandatoryconvertiblesecuritiesofnomorethanUS$468millionforthesubscriptionofTL.Atthematurityofthelong-termloans,CMAwouldprovidethecashrequiredforrepayingtheloansbyinjectingcapitalinTLandalltheconvertiblesecuritiesheldbyCMPortHoldingswouldbeconvertedintoTL’sequitymandatorily.On26March2020,CMPortHoldingscompletedtheacquisitionofPhaseIeighttargetports,withthesubscriptionofmandatoryconvertiblesecuritiesandprepaymentoftheloansamountingtoapproximatelyUS$815million.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartVIShareChangesandShareholderInformation
I.ShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| I.Restrictedshares | 1,277,770,996 | 66.47% | 0 | 0 | 0 | -129,112,852 | -129,112,852 | 1,148,658,144 | 59.75% |
| 1.Sharesheldbystate | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.Sharesheldbystate-ownedlegalperson | 128,952,746 | 6.71% | 0 | 0 | 0 | -128,952,746 | -128,952,746 | 0 | 0.00% |
| 3.Sharesheldbyotherdomesticinvestors | 169,602 | 0.01% | 0 | 0 | 0 | -160,106 | -160,106 | 9,496 | 0.00% |
| Including:Sharesheldbydomesticlegalperson | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Sharesheldbydomesticnaturalperson | 169,602 | 0.01% | 0 | 0 | 0 | -160,106 | -160,106 | 9,496 | 0.00% |
| 4.Sharesheldbyforeigninvestors | 1,148,648,648 | 59.75% | 0 | 0 | 0 | 0 | 0 | 1,148,648,648 | 59.75% |
| Including:Sharesheldbyforeignlegalperson | 1,148,648,648 | 59.75% | 0 | 0 | 0 | 0 | 0 | 1,148,648,648 | 59.75% |
| Sharesheldbyforeignnaturalperson | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| II.Unrestrictedshares | 644,594,128 | 33.53% | 0 | 0 | 0 | 129,112,852 | 129,112,852 | 773,706,980 | 40.25% |
| 1.RMBordinaryshares | 464,858,324 | 24.18% | 0 | 0 | 0 | 128,961,746 | 128,961,746 | 593,820,070 | 30.89% |
| 2.Domesticallylistedforeignshares | 179,735,804 | 9.35% | 0 | 0 | 0 | 151,106 | 151,106 | 179,886,910 | 9.36% |
| 3.Overseaslistedforeignshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4.Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III.Totalshares | 1,922,365,124 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,922,365,124 | 100.00% |
Reasonsforsharechanges:
(1)Changeofdirectors,supervisorsandseniormanagement;(2)RestrictionsonsharesheldbytheCompany’sshareholdersShenzhenInfrastructureInvestmentFundPartnership(LimitedPartnership)andChina-AfricaDevelopmentFundarereleased.Approvalofsharechanges:
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchases:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofsharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
Unit:share
| Nameofshareholders | Numberofrestrictedsharesattheperiod-begin | Numberofincreasedrestrictedshares | Numberofreleasedrestrictedshares | Numberofrestrictedsharesattheperiod-end | Reasonforrestriction | Dateofrestrictionrelease |
| ChinaMerchantsPortInvestmentDevelopmentCompanyLimited | 1,148,648,648 | 0 | 0 | 1,148,648,648 | Accordingtorelevantlawsandregulationsandtheshareholdercommitment | June2022 |
| SHENZHENINFRASTRUCTUREINVESTMENTFUND-SHENZHENINFRASTRUCTUREINVESTMENTFUNDPARTNERSHIP(LIMITEDPARTNERSHIP) | 64,850,182 | 0 | 64,850,182 | 0 | Accordingtorelevantlawsandregulationsandtheshareholdercommitment | November2020 |
| CHINA- | 64,102,564 | 0 | 64,102,564 | 0 | Accordingtorelevant | November |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| AFRICADEVELOPMENTFUND | lawsandregulationsandtheshareholdercommitment | 2020 | ||||
| YuanYuhui | 10,530 | 3,510 | 14,040 | 0 | AccordingtotheArticlesofAssociationandtherelevantlawsandregulations | December2020 |
| NiKeqin | 21,909 | 7,302 | 29,211 | 0 | AccordingtotheArticlesofAssociationandtherelevantlawsandregulations | December2020 |
| ZhengShaoping | 9,496 | 0 | 0 | 9,496 | AccordingtotheArticlesofAssociationandtherelevantlawsandregulations | - |
| ZhangJianguo | 55,712 | 0 | 55,712 | 0 | AccordingtotheArticlesofAssociationandtherelevantlawsandregulations | December2020 |
| ZhaoChaoxiong | 48,716 | 0 | 48,716 | 0 | AccordingtotheArticlesofAssociationandtherelevantlawsandregulations | December2020 |
| WangYongli | 3,739 | 0 | 3,739 | 0 | AccordingtotheArticlesofAssociationandtherelevantlawsandregulations | December2020 |
| YaoShenglan | 19,500 | 0 | 19,500 | 0 | AccordingtotheArticlesofAssociationandtherelevantlawsandregulations | December2020 |
| Total | 1,277,770,996 | 10,812 | 129,123,664 | 1,148,658,144 | -- | -- |
Note:ChinaMerchantsInvestmentDevelopmentCompanyLimited(CMID)(Chinesename:
招商局投资发展有限公司)wasrenamedChinaMerchantsPortInvestmentDevelopmentCompanyLimited(CMPID)(Chinesename:
招商局港口投资发展有限公司)on8July2020.II.IssuanceandListingofSecurities
1.Securities(ExclusiveofPreferredShares)IssuedintheReportingPeriod
□Applicable√Notapplicable
2.ChangestoTotalShares,ShareholderStructureandAssetandLiabilityStructures
□Applicable√Notapplicable
3.ExistingStaff-HeldShares
□Applicable√NotapplicableIIIShareholdersandActualController
1.ShareholdersandTheirShareholdingsatthePeriod-End
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Unit:share
| Numberofordinaryshareholdersattheperiod-end | 32,872 | Numberofordinaryshareholdersatthemonth-endpriortothedisclosureofthisReport | 32,743 | Numberofpreferredshareholderswithresumedvotingrightsattheperiod-end(ifany) | 0 | Numberofpreferredshareholderswithresumedvotingrightsatthemonth-endpriortothedisclosureofthisReport(ifany) | 0 | ||||||
| 5%orgreatershareholdersortop10shareholders | |||||||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalsharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedsharesheld | Unrestrictedsharesheld | Sharesinpledgeorfrozen | ||||||
| CHINAMERCHANTSPORTINVESTMENTDEVELOPMENTCOMPANYLIMITED | Foreignlegalperson | 59.75% | 1,148,648,648 | 0 | 1,148,648,648 | 0 | 0 | ||||||
| CHINAMERCHANTSGANGTONGDEVELOPMENT(SHENZHEN)CO.,LTD. | State-ownedlegalperson | 19.29% | 370,878,000 | 0 | 0 | 370,878,000 | 0 | ||||||
| SHENZHENINFRASTRUCTUREINVESTMENTFUND-SHENZHENINFRASTRUCTUREINVESTMENTFUNDPARTNERSHIP(LIMITEDPARTNERSHIP) | Fundandwealthmanagementproducts | 3.37% | 64,850,182 | 0 | 0 | 64,850,182 | 0 | ||||||
| CHINA-AFRICADEVELOPMENTFUND | State-ownedlegalperson | 3.33% | 64,102,564 | 0 | 0 | 64,102,564 | 0 | ||||||
| BROADFORDGLOBALLIMITED | State-ownedlegalperson | 2.88% | 55,314,208 | 0 | 0 | 55,314,208 | 0 | ||||||
| CMBLSAREFTIFTEMPLETONASIANGRWFDGTI5496 | Foreignlegalperson | 0.54% | 10,410,926 | -19,565,670 | 0 | 10,410,926 | Unknown | ||||||
| NORGESBANK | Foreignlegalperson | 0.15% | 2,802,863 | 0 | 0 | 2,802,863 | Unknown | ||||||
| HONGKONGSECURITIESCLEARINGCOMPANYLTD. | Foreignlegalperson | 0.14% | 2,707,901 | 1,522,020 | 0 | 2,707,901 | Unknown | ||||||
| CHINAMERCHANTSSECURITIES(HK)CO.,LTD. | State-ownedlegalperson | 0.14% | 2,606,355 | 93,000 | 0 | 2,606,355 | Unknown | ||||||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| MAISHUQING | Domesticnaturalperson | 0.11% | 2,129,247 | -247,500 | 0 | 2,129,247 | Unknown | |
| Strategicinvestorsorgenerallegalpersonbecomingtop-tenshareholdersduetoplacingofnewshares(ifany) | N/A | |||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.isamajority-ownedsubsidiaryofBroadfordGlobalLimited,andBroadfordGlobalLimitedisthecontrollingshareholderofChinaMerchantsPortInvestmentDevelopmentCompanyLimited.TheCompanydoesnotknowwhethertheotherunrestrictedshareholdersarerelatedpartiesornot. | |||||||
| Aboveshareholdersinvolvedinentrusting/beingentrustedandgivingupvotingrights | None | |||||||
| Top10unrestrictedshareholders | ||||||||
| Nameofshareholder | Unrestrictedsharesheldattheperiod-end | Sharesbytype | ||||||
| Type | Shares | |||||||
| CHINAMERCHANTSGANGTONGDEVELOPMENT(SHENZHEN)CO.,LTD. | 370,878,000 | RMBordinaryshare | 370,878,000 | |||||
| SHENZHENINFRASTRUCTUREINVESTMENTFUND-SHENZHENINFRASTRUCTUREINVESTMENTFUNDPARTNERSHIP(LIMITEDPARTNERSHIP) | 64,850,182 | RMBordinaryshare | 64,850,182 | |||||
| CHINA-AFRICADEVELOPMENTFUND | 64,102,564 | RMBordinaryshare | 64,102,564 | |||||
| BROADFORDGLOBALLIMITED | 55,314,208 | Domesticallylistedforeignshare | 55,314,208 | |||||
| CMBLSAREFTIFTEMPLETONASIANGRWFDGTI5496 | 10,410,926 | Domesticallylistedforeignshare | 10,410,926 | |||||
| NORGESBANK | 2,802,863 | Domesticallylistedforeignshare | 2,802,863 | |||||
| HONGKONGSECURITIESCLEARINGCOMPANYLTD. | 2,707,901 | RMBordinaryshare | 2,707,901 | |||||
| CHINAMERCHANTSSECURITIES(HK)CO.,LTD. | 2,606,355 | Domesticallylistedforeignshare | 2,606,355 | |||||
| MAISHUQING | 2,129,247 | RMBordinaryshare | 2,129,247 | |||||
| SHENZHENQIANHAIHUASHANCAPITALCO.,Ltd-HUA | 2,005,091 | RMBordinary | 2,005,091 | |||||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| SHANYONGXUPRIVATEEQUITYMANAGEMENT | share | ||
| Relatedoracting-in-concertpartiesamongtop10unrestrictedpublicshareholders,aswellasbetweentop10unrestrictedpublicshareholdersandtop10shareholders | ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.isamajority-ownedsubsidiaryofBroadfordGlobalLimited.TheCompanydoesnotknowwhethertheotherunrestrictedshareholdersarerelatedpartiesornot. | ||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | N/A | ||
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.
2.ControllingShareholderNatureofthecontrollingshareholder:Controlledbyacentralstate-ownedlegalpersonTypeofthecontrollingshareholder:legalperson
| Nameofcontrollingshareholder | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| BROADFORDGLOBALLIMITED | LiJianhui,SunLigan | 27November2017 | 68550019-000-11-17-2 | Portservices,bondedlogisticandcoldchainservices,propertydevelopmentandinvestment |
| ShareholdingsofthecontrollingshareholderinotherlistedcompaniesathomeorabroadinthisReportingPeriod | N/A | |||
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
3.ActualControllerandItsActing-in-ConcertPartiesNatureoftheactualcontroller:Centralinstitutionforstate-ownedassetsmanagementTypeoftheactualcontroller:legalperson
| Nameofactualcontroller | Legalrepresentative/personincharge | Dateofestablishment | Unifiedsocialcreditcode | Principalactivity |
| ChinaMerchantsGroup | MiaoJianmin | 14October1986 | 10000522-0 | Leaseandagencyofwater/landpassenger-cargotransportation,water/landconveyanceandfacilities;investmentandmanagementofportandstoragebusiness;salvage,refloatationandtugboat;industrialproduction;construction,repairing,checkingand |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| marketingofshipping,offshorepetroleumdrillingequipment;repairingandcheckingofdrillingplatformanddrillingcontainer;overallcontractingofwater/landconstructionprojectsandtherelatedoffshorepetroleumdevelopmentprojects,andtheirconstructionorganizationandlogisticservices;procurement,supplyandsaleofwater/landcommunicationandtransportationequipment;exportandimportbusinessoftransportation;investmentandmanagementoffinance,insurance,trust,securities,futuresbusiness;investmentandmanagementoftourism,hotels,cateringservicesandrelevantservice;realestatedevelopment,managementandconsultancyofproperty;investmentandmanagementofpetroleumandchemicalindustry;investmentandoperationofinfrastructureofcommunication;overseasassetsmanagement.DevelopmentandmanagementofShenzhenShekouIndustrialZoneandFujianZhangzhouDevelopmentZone.(Themarketbodyshallindependentlychoosebusinessitemsandcarryoutbusinessactivitiesaccordingtolaw.Foritemsrequiringapprovalaccordingtolaw,themarketbodymustobtainapprovalfromrelatedauthoritiesbeforecarryingoutthebusinessactivities.Themarketbodyshallnotengageinbusinessactivitiesthatarebannedandrestrictedinthenationalandmunicipalindustrialpolicies.) | ||
| ShareholdingsoftheactualcontrollerinotherlistedcompaniesathomeorabroadinthisReportingPeriod | ChinaMerchantsGroupholds:78.29%sharesofYingkouPortServicesCo.,Ltd.;75.00%sharesofDalianPort(PDA)CompanyLimited;74.35%ChinaMerchantsLandLimited;68.72%sharesofChinaMerchantsExpresswayNetwork&TechnologyHoldingsCo.,Ltd;64.94%sharesofChinaMerchantsPortHoldingsCompanyLimited;63.98%sharesofChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.;57.64%sharesofSinotransLimited;54.39%sharesofChinaMerchantsEnergyShippingCo.,Ltd;51.16%sharesofChinaMerchantsPropertyOperation&ServiceCo.,Ltd.;44.17%sharesofChinaMerchantsSecuritiesCo.Ltd.;33.50%sharesofChinaMerchantsCommercialRealEstateInvestmentTrust;29.97%sharesofChinaMerchantsBankCo.,Ltd;29.94%sharesofAnhuiExpresswayCompanyLimited;27.59%sharesofChinaMerchantsChinaDirectInvestmentsLimited;27.47%sharesofNanjingTankerCorporation;26.55%sharesofShanghaiInternationalPort(Group)Co.,Ltd;24.88%sharesofSichuanExpresswayCompanyLimited;24.60%sharesofChinaInternationalMarineContainers(Group)Ltd;19.08%sharesofJinzhouPortCo.,Ltd.;17.75%sharesofFujianExpresswayDevelopmentCo.,Ltd;16.52%sharesofHeilongjiangTransportDevelopmentCo.,Ltd;16.32%sharesofHubeiChutianSmartCommunicationCo.,Ltd.;16.29%sharesofShandongHi-speedCo.,Ltd;15.43%sharesofHenanZhongyuanExpresswayCo.,Ltd;14.04%sharesofJilinExpresswayCo.,Ltd;13.86%sharesofGuangxiWuzhouCommunicationsCo.,Ltd;12.36%sharesofChinaGreatWallSecuritiesCo.,Ltd.;11.69%sharesofJiangsuExpresswayCompanyLimited;8.04%sharesofXiandaiInvestmentCo.,Ltd; | |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
ChangeoftheactualcontrollerduringtheReportingPeriod:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.OwnershipandcontrolrelationsbetweentheactualcontrollerandtheCompany:
IndicatebytickmarkwhethertheactualcontrollercontrolstheCompanyviatrustorotherwaysofassetmanagement.
□Applicable√Notapplicable
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
4.Other10%orGreaterCorporateShareholders
| Nameofcorporateshareholders | Legalrepresentative/personincharge | Dateofestablishment | Registeredcapital | Businessscopeormanagementactivities |
| ChinaMerchantsPortInvestmentDevelopmentCompanyLimited | LiJianhui,SunLigan | 15November2013 | HKD28,287,989,241 | Investmentmanagementofequitiesandothers |
| ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd. | DengWeidong | 16January2018 | RMB9.446million | Provisionofmanagementservicesforports(withoutinvolvingspecialadministrativemeasuresontheaccessofforeigninvestment);portinformationinquiries,economicinformationconsultation,economicinformationconsultation,corporatemanagementconsultation,businessinformationconsultation,brandmanagementconsultationandlogisticsinformationconsultation(excludingrestricteditemsineachcase);technicaldevelopmentandsalesofshipmachineryandequipment;technicalservicesinrespectofportloadingandunloadingequipment;supportingbusinessesinrespectofthedesign,sales,importandexportofloadingandunloadingtools,mechanicalandelectricalproductsandnon-ferrousmetalproducts(excludingpreciousmetals)(Commoditiesthatinvolvestatetrading,quota,licenseandspecialadministrativeregulationsshallbeoperatedthroughtheapplicationpursuanttorelatedstateregulations);technicaldevelopmentandtechnicalservicesinrespectofmodernlogisticsinformationsystems;supplychainmanagementandrelatedsupportingservices;designoflogisticsplans;planningofcorporateimage;planningofculturalexchangeactivities(withoutinvolvingspecialadministrativemeasuresontheaccessofforeigninvestment);marketingplanning;andplanningofbrandimage.(Ineachcase,anyitemforbiddenbylaws,administrativeregulationsandtheStateCouncilshallbeexcludedandrestricteditemsshallbeoperatedupontheattainmentofthepermission) |
5.LimitationsonShareholdingDecreasebytheCompany’sControllingShareholder,ActualController,ReorganizerandOtherCommitmentMakers
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Fordetails,seeIII.FulfillmentofcommitmentsinPartVSignificantEventsofthisreport
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartVIIPreferredShares
□Applicable√NotapplicableNopreferredsharesintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartVIIIConvertibleCorporateBonds
□Applicable√NotapplicableNoconvertiblecorporatebondsintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartIXDirectors,Supervisors,SeniorManagementandStaffIChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
| Name | Officetitle | Incumbent/Former | Gender | Age | Startoftenure | Endoftenure | Beginningshareholding(share) | IncreaseintheReportingPeriod(share) | DecreaseintheReportingPeriod(share) | Otherincrease/decrease(share) | Endingshareholding(share) |
| DengRenjie | ChairmanoftheBoard | Incumbent | Male | 51 | December2018 | May2023 | 0 | 0 | 0 | 0 | 0 |
| BaiJingtao | ViceChairmanoftheBoardandCEO | Incumbent | Male | 55 | September2017 | May2023 | 0 | 0 | 0 | 0 | 0 |
| YanShuai | Director | Incumbent | Male | 48 | December2018 | May2023 | 0 | 0 | 0 | 0 | 0 |
| SongDexing | Director | Incumbent | Male | 58 | December2018 | May2023 | 0 | 0 | 0 | 0 | 0 |
| ZhangYi | Director,COOandGM | Incumbent | Male | 50 | December2018 | May2023 | 0 | 0 | 0 | 0 | 0 |
| GaoPing | Independentdirector | Incumbent | Male | 65 | May2020 | May2023 | 0 | 0 | 0 | 0 | 0 |
| WangZhenmin | Independentdirector | Incumbent | Male | 54 | May2020 | May2023 | 0 | 0 | 0 | 0 | 0 |
| LiQi | Independentdirector | Incumbent | Female | 50 | May2020 | May2023 | 0 | 0 | 0 | 0 | 0 |
| LiuYingjie | ChairmanoftheSupervisoryCommittee | Incumbent | Male | 49 | December2018 | May2023 | 0 | 0 | 0 | 0 | 0 |
| HuQin | Supervisor | Incumbent | Female | 54 | December2018 | May2023 | 0 | 0 | 0 | 0 | 0 |
| YangYuntao | Supervisor | Incumbent | Male | 54 | December2018 | May2023 | 0 | 0 | 0 | 0 | 0 |
| GongMan | Supervisor | Incumbent | Female | 32 | May2020 | May2023 | 0 | 0 | 0 | 0 | 0 |
| XuJia | Supervisor | Incumbent | Male | 39 | May2020 | May2023 | 0 | 0 | 0 | 0 | 0 |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| ZhengShaoping | ViceGM | Incumbent | Male | 58 | December2018 | May2023 | 12,661 | 0 | 2,840 | 0 | 9,821 |
| LuYongxin | ViceGMandActingCFO | Incumbent | Male | 51 | December2018 | May2023 | 0 | 0 | 0 | 0 | 0 |
| LiYubin | ViceGMandActingSecretaryoftheBoard | Incumbent | Male | 49 | December2018 | May2023 | 0 | 0 | 0 | 0 | 0 |
| XuSong | ViceGM | Incumbent | Male | 49 | October2020 | May2023 | 0 | 0 | 0 | 0 | 0 |
| LiuLibing | GeneralCounsel | Incumbent | Male | 47 | August2020 | May2023 | 0 | 0 | 0 | 0 | 0 |
| FuGangfeng | FormerChairmanoftheBoard | Former | Male | 54 | December2018 | January2020 | 0 | 0 | 0 | 0 | 0 |
| SuJian | FormerDirector | Former | Male | 49 | December2018 | March2021 | 0 | 0 | 0 | 0 | 0 |
| YuanYuhui | FormerIndependentdirector | Former | Male | 70 | June2017 | May2020 | 14,040 | 0 | 0 | 0 | 14,040 |
| SuQiyun | FormerIndependentdirector | Former | Male | 57 | June2017 | May2020 | 0 | 0 | 0 | 0 | 0 |
| LiChangqing | FormerIndependentdirector | Former | Male | 52 | June2017 | May2020 | 0 | 0 | 0 | 0 | 0 |
| NiKeqin | FormerSupervisor | Former | Female | 56 | June2017 | May2020 | 29,211 | 0 | 0 | 0 | 29,211 |
| ZhengLinwei | FormerSupervisor | Former | Male | 50 | June2017 | May2020 | 0 | 0 | 0 | 0 | 0 |
| HuangChuanjing | FormerViceGMandFormerSecretaryoftheBoard | Former | Male | 38 | December2018 | January2021 | 0 | 0 | 0 | 0 | 0 |
| WenLing | FormerCFO | Former | Female | 55 | December2018 | April2020 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | -- | -- | -- | -- | 55,912 | 0 | 2,840 | 53,072 |
IIChangeofDirectors,SupervisorsandSeniorManagement
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| DengRenjie | ChairmanoftheBoard | Elected | 3February2020 | - |
| BaiJingtao | ViceChairmanoftheBoard | Elected | 14April2020 | - |
| ZhangYi | Director | Elected | 22May2020 | - |
| GaoPing | Independentdirector | Elected | 22May2020 | - |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| WangZhenmin | Independentdirector | Elected | 22May2020 | - |
| LiQi | Independentdirector | Elected | 22May2020 | - |
| GongMan | Supervisor | Elected | 22May2020 | - |
| XuJia | Supervisor | Elected | 22May2020 | - |
| LiuLibing | GeneralCounsel | Elected | 27August2020 | - |
| XuSong | ViceGM | Elected | 29October2020 | - |
| FuGangfeng | ChairmanoftheBoard | Left | 31January2020 | Jobchange |
| WenLing | CFO | Left | 29April2020 | Retirement |
| YuanYuhui | Independentdirector | Leftforexpirationofappointment | 22May2020 | ChangeoftheBoard |
| SuQiyun | Independentdirector | Leftforexpirationofappointment | 22May2020 | ChangeoftheBoard |
| LiChangqing | Independentdirector | Leftforexpirationofappointment | 22May2020 | ChangeoftheBoard |
| NiKeqin | Supervisor | Leftforexpirationofappointment | 22May2020 | ChangeoftheSupervisoryCommittee |
| ZhengLinwei | Supervisor | Leftforexpirationofappointment | 22May2020 | ChangeoftheSupervisoryCommittee |
| HuangChuanjing | ViceGMandSecretaryoftheBoard | Left | 15January2021 | Jobchange |
| SuJian | Director | Left | 5March2021 | Jobchange |
IIIBiographicalInformationProfessionalbackgrounds,majorworkexperienceandcurrentdutiesintheCompanyoftheincumbentdirectors,supervisorsandseniormanagement:
DengRenjie,ChairmanoftheBoard,graduatedfromBeijingElectronicScience&TechnologyInstitute,majoringincomputing,andobtainedabachelordegree,latergraduatedfromDalianMaritimeUniversity,majoringininternationaleconomiclaw,andobtainedmaster’sdegree.DengRenjienowholdsthepostoftheViceGMofChinaMerchantsGroupCompanyLimited,PresidentofLiaoningPortGroupCo.,Ltd.,theCompany’sChairmanoftheBoard,VicePresidentofthe8
thCouncilofChinaHighwayandTransportationSociety&VicePresidentofthe7
thCouncilofChinaTransportationAssociation.DengRenjiehassuccessivelyheldthepostsofResearcherofGeneralOfficeofMinistryofCommunications,DeputyDirectorofGeneralOfficeofHunanProvincialPartyCommittee,DeputySecretaryGeneralofHunanProvincialPartyCommittee,Deputy
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
SecretaryGeneralofPartyCommitteeofXinjiangAutonomousRegion,AssistantPresidentofChinaMerchantsGroupCompanyLimited,DirectorofGeneralManager’sOffice,andChairmanoftheBoardofChinaMerchantsExpresswayNetwork&TechnologyHoldingsCo.,Ltd.DengRenjiehasbeenbeingtheViceChairmanoftheBoardoftheCompanyfromDecember2018toJanuary2020,andhasbeenbeingtheChairmanoftheBoardoftheCompanysinceFebruary2020.BaiJingtao,ViceChairmanoftheBoardandChiefExecutiveOfficer,ProfessorLevelSeniorEngineer,graduatedfromDepartmentofWaterConservancyofTianjinUniversityandobtainedbachelor’sdegreeinportandwaterwayengineering.LaterBaiJingtaostudiedatGraduateSchoolofWuhanUniversityofTechnology,GraduateSchoolofShanghaiMaritimeUniversityandobtainedmaster’sdegreeinmanagementscienceandengineering,doctor’sdegreeintransportationplanningandmanagementrespectively.BaiJingtaonowholdsthepostoftheCompany’sDirector,CEOandPartySecretary,ManagingDirectorofChinaMerchantsPortHoldingsCompanyLimited(CMPortHoldings).BaiJingtaohassuccessivelyheldthepostsofAssistantEngineerofCCCCWaterTransportationConsultantsCo.,Ltd,PrincipalStaffofDivisionofEngineeringManagementandDivisionofInfrastructureManagementofMinistryofCommunications,DeputyDirectorandDirectorofDivisionofInfrastructureManagementandDivisionofWaterTransportofMinistryofCommunications,ViceGMofChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd,DeputyDirectorofXiamenPortAuthority,ViceGMofChinaMerchantsInternationalCompanyLimited,ExecutiveDeputyDirectorofManagementCommitteeofChinaMerchantsZhangzhouEconomicandTechnologicalDevelopmentZone,GMofChinaMerchantsZhangzhouEconomicandTechnologicalDevelopmentZoneCompanyLimitedandGMofLiaoningPortGroupCo.,Ltd.BaiJingtaohasbeenbeingtheDirectoroftheCompanysinceSeptember2017andtheDirectorandChiefExecutiveOfficeroftheCompanysinceDecember2018,andhasbeenbeingtheViceChairmanoftheBoardandChiefExecutiveOfficeroftheCompanysinceApril2020.YanShuai,Director,graduatedfromHarbinEngineeringUniversity,majoringinindustrialautomation,andobtainedbachelor’sdegreeinengineering.LaterYanShuaiobtainedmaster’sdegreeinmanagementatBeijingUniversityofAeronauticsandAstronautics.YanShuainowholdsthepostsofDirectorofHumanResourcesDepartment.YanShuaihassuccessivelyheldthepostsofDeputyResearcherofGeneralOfficeoftheStateCouncilofthePeople’sRepublicofChina
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
SecondSecretariat,VicePresidentofChinaMerchantsGroupFinanceCo.,Ltd.,DeputyDirector(principalperson)ofHumanResourcesDepartmentofChinaMerchantsGroupCompanyLimited.YanShuaihasbeenbeingtheDirectoroftheCompanysinceDecember2018.SongDexing,Director,SeniorEngineer,graduatedfromDepartmentofMechanicsofWuhanUniversityofTechnology(formernameisWuhanInstituteofWaterTransportationEngineering),andobtainedbachelor’sdegreeinengineering.LaterSongDexingobtainedmaster’sdegree,majoringintransportationplanningatWuhanUniversityofTechnologyanddoctor’sdegreeinmanagement,majoringinadministrativemanagementatHuazhongUniversityofScienceandTechnology.SongDexingnowholdsthepostsofBusinessDirectorofTransportation&Logistics,MinisterofTransportation&LogisticsBusinessDepartment/BeijingHeadquartersofChinaMerchantsGroupCompanyLimited,GM,SecretaryofPartyCommitteeofSINOTRANS&CSC.SongDexinghassuccessivelyheldthepostsofSecretaryofYouthLeagueCommittee,EngineerofWaterTransportPlanning&DesignInstituteofMinistryofCommunications,PrincipalStaffofDivisionofTransportofMinistryofCommunications,DeputyDirector,DirectorofContainerOfficeofDivisionofWaterTransportofMinistryofCommunications,DeputyMayorofLuoyangMunicipalPeople’sGovernment(temporarypost),DeputyDirectorofChinaWaterborneTransportResearchInstitute,DeputyDirector,DirectorofYangtzeThreeGorgesNavigationAdministration,DeputyDirector,DirectorofDivisionofWaterTransportofMinistryofCommunications,DirectorofBureauofWaterTransportofMinistryofTransport(DirectorofTaiwaneseAffairsOfficeoftheministry),ViceChairmanoftheBoard,MemberofPartyCommittee,DeputySecretaryofPartyCommittee,SecretaryofCommitteeforDisciplineInspectionofSINOTRANS&CSC,GeneralManagerofSINOTRANS&CSC,DirectorofDepartmentofComprehensiveLogisticsBusinessofChinaMerchantsGroupCompanyLimited.SongDexinghasbeenbeingtheDirectoroftheCompanysinceDecember2018.ZhangYi,Director,ChiefOperationalOfficerandGeneralManager,graduatedfromWuhanInstituteofWaterTransportationEngineeringandobtainedbachelor’sdegreeintransportationmanagementengineering.LaterZhangYiobtaineddoctor’sdegreeinengineeringatWuhanUniversityofTechnology.ZhangYinowholdsthepostofDirector,theGM&COOoftheCompany,DeputyGeneralManagerofChinaMerchantsPortHoldingsCompanyLimited(CM
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PortHoldings).ZhangYihassuccessivelyheldthepostsofPlannerofPlanningDivisionofZhanjiangPortAuthority,DeputyDirectorofPlanningDevelopmentDivisionofZhanjiangPortAuthority,AssistantDirectorofZhanjiangPortAuthority,Director,President,ChairmanoftheBoard,SecretaryofPartyCommitteeofZhanjiangPortGroupCompanyLimited.ZhangYihasbeenbeingtheGM&COOoftheCompanysinceDecember2018.ZhangYihasbeenbeingtheDirector,COOandGMoftheCompanysinceMay2020.GaoPing,IndependentDirector,obtainedExecutiveMasterofBusinessAdministrationfromtheUniversityofInternationalBusinessandEconomics(UIBE).Heisalsoaseniorengineerandseniorpoliticalworker.Hisformertitlesincludedfirstmate,ManagementSectionChief,andHRManageratShanghaiOceanShippingCo.,Ltd.,HRGeneralManageratCOSCOContainerLinesCo.,Ltd.,GeneralManagerattheCrewDepartmentofCOSCO(H.K.)ShippingCo.,Ltd.,DeputyGeneralManageratCOSCO(H.K.)ShippingCo.,Ltd.,DeputyGeneralManageratShenzhenOceanShippingCo.,Ltd.underCOSCO(H.K.)ShippingCo.,Ltd.,GeneralManagerattheOrganizationDepartment/HRDepartmentofChinaCOSCOSHIPPINGCorporationLimited(COSCOSHIPPINGGroup),part-timesupervisoroftheBoardofSupervisorsofLargeKeyState-ownedEnterprisesdispatchedbytheStateCounciltoCOSCOSHIPPINGGroup,SecretaryofthePartyCommitteeandDeputyGeneralManageratCOSCOShippingLinesCo.,Ltd.,memberof11thand12thShanghaiCommitteesoftheChinesePeople'sPoliticalConsultativeConference(CPPCC),andDeputyDirectoroftheCommitteeforEconomicAffairsoftheShanghaiCommitteeoftheCPPCC.HehasbeenanindependentdirectoroftheCompanysinceMay2020.WangZhenmin,IndependentDirector,graduatedfromtheRenminUniversityofChinaandspecializedinConstitution.HeisalsoanexpertreceivingaspecialallowancefromtheStateCouncil.Moreover,heisaprofessoroftheSchoolofLaw,DeanoftheInstituteofStateGovernanceStudies,TsinghuaUniversity,andDirectoroftheCenterforHongKongandMacaoResearch,TsinghuaUniversity.Heusedtoworkasalecturer,associateprofessor,andDeputyDirectoroftheDepartmentofLaw,DeputyDeanandDeanoftheSchoolofLaw,TsinghuaUniversity,andDirectoroftheDepartmentofLawoftheLiaisonOfficeoftheCentralPeople'sGovernmentintheHongKongS.A.R.HehasbeenanindependentdirectoroftheCompanysinceMay2020.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
LiQi,IndependentDirector,graduatedfromGuanghuaSchoolofManagement,PekingUniversity,andmajoredinBusinessManagement.Currently,sheisanassociateprofessorattheDepartmentofAccountingoftheGuanghuaSchoolofManagement,PekingUniversity.SheworkedasateachingassistantandlecturerattheDepartmentofAccountingandAssistanttotheDeanandDeputySecretaryofthePartyCommitteeoftheGuanghuaSchoolofManagement,PekingUniversity.ShehasbeenanindependentdirectoroftheCompanysinceMay2020.LiuYingjie,ChairmanoftheSupervisoryCommittee,graduatedfromCapitalUniversityofEconomicsandBusiness,majoringinaccounting,andobtainedbachelor’sdegreeineconomics.LiuYingjienowholdsthepostofDirectorofRiskControlDepartment/LawandComplianceDepartmentandDirectorofAuditCenterofChinaMerchantsGroup.LiuYingjiehassuccessivelyheldthepostsofDeputyDirector,DirectorofDivisionofComprehensiveAuditofSupervisionDepartmentofCOSCO,DirectorofDivisionofComputerAudit,AssistantDirector,DeputyDirectorofRiskControlDepartment/AuditDepartmentofChinaMerchantsGroup.LiuYingjiehasbeenbeingtheChairmanoftheSupervisoryCommitteeoftheCompanysinceDecember2018.HuQin,Supervisor,graduatedfromPekingUniversity,majoringininternationallaw,andobtainedmaster’sdegreeinlaw.LaterHuQinstudiedatNUSBusinessSchoolandobtainedmaster’sdegreeinmanagement.HuQinnowholdsthepostofDeputyDirectorofRiskControlDepartment/Law&ComplianceandSeniorDirectorofChinaMerchantsGroup.HuQinhassuccessivelyheldthepostsofDeputyGeneralManagerofPlanningDepartmentofChinaMerchantsShekouIndustrialZoneCompanyLimited,GeneralManagerandGeneralCounselofDepartmentofLegalAffairs,GeneralCounselofChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.,DeputyDirectorofRiskControlDepartmentofChinaMerchantsGroup,DeputyDirectorofLegalDepartment.HuQinhasbeenbeingtheSupervisoroftheCompanySinceDecember2018.YangYuntao,Supervisor,graduatedfromJilinUniversity,majoringininternationallaw,andobtainedbachelor’sdegreeinlaw.LaterYangYuntaostudiedatSchoolofLaw,UniversityofInternationalBusinessandEconomics,andobtaineddoctor’sdegreeinlaw.YangYuntaonowholdsthepostsofDeputyGeneralManagerandGeneralCounselofChinaMerchantsEnergyShippingCo.,Ltd.,.YangYuntaohassuccessivelyheldthepostsofDeputyGeneralManagerofPortBusinessDepartmentofSino-TransChinaNationalForeignTradeTransportationCorporation,
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
GeneralManagerofLawDepartment,Director,DeputyPresident(principalperson)ofSINOTRANS(HongKong)GroupCompanyLimited,Non-ExecutiveDirectorofSINOTRANSLimited,GeneralManagerofLawDepartmentofSino-TransChinaForeignTradeTransportation(Group)Corporation,GeneralManager,DeputyGeneralCounsel,GeneralCounselofLawDepartmentofSINOTRANS&CSC,DeputyDirectorofTransportation&LogisticsBusinessDepartment/BeijingHeadquartersofChinaMerchantsGroupCompanyLimited.YangYuntaohasbeenbeingtheSupervisoroftheCompanysinceDecember2018.GongMan,Supervisor,obtainedhermaster'sdegreeinaccountingfromtheDongbeiUniversityofFinance&Economics.SheservesastheManagerattheFinancialManagementDepartmentofChinaMerchantsPortGroupCo.,Ltd.andaccountantattheFinancialDepartmentofShekouContainerTerminalCo.,Ltd.ShehasbeenasupervisoroftheCompanysinceMay2020.XuJia,Supervisor,graduatedfromtheWuhanUniversityofTechnologyandobtainedamaster'sdegreeinControlTheoryandControlEngineering.HeistheManagerattheOperationsManagementDepartmentofChinaMerchantsPortGroupCo.,Ltd.HeworkedasaSeniorSystemPlanningEngineerandProjectPlanningDirectorattheEngineeringTechnologyDepartmentofShekouContainerTerminalCo.,Ltd.HehasbeenasupervisoroftheCompanysinceMay2020.ZhengShaoping,ViceGeneralManager,graduatedfromDalianMaritimeUniversityforpostgraduate,majoringininternationalmaritimelaw.LaterZhengShaopingobtainedmaster’sdegreeinbusinessadministrationatTheUniversityofWales.HenowactsastheVicePresidentoftheCompany,theExecutiveDirectorandViceGeneralManagerofChinaMerchantsPortHoldingsCompanyLimited.HeonceactedastheViceGeneralManagerofShenzhenChiwanWharfHoldingsLimited&GeneralManagerofChiwanWharfContainerCompany,ViceGeneralManagerandDirectorofShenzhenChiwanWharfHoldingsLimited,GeneralManagerandDirectorofShenzhenChiwanWharfHoldingsLimited,GeneralManagerandViceChairmanoftheBoardofShenzhenChiwanWharfHoldingsLimited,GeneralManagerandChairmanoftheBoardofShenzhenChiwanWharfHoldingsLimited,ViceGeneralManagerofChinaNanshanDevelopment(Group)Inc.,ViceGeneralManagerandExecutiveDirectorofChinaMerchantsHoldings（International）CompanyLimited,ViceGeneralManager(GeneralManagerLevel)andExecutiveDirectorofChinaMerchantsHoldings（International）CompanyLimited.Hehas
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
beenbeingtheVicePresidentoftheCompanysinceDecember2018.LuYongxin,ViceGMandActingCFO,graduatedfromDalianUniversityofTechnology,andobtainedbachelor’sdegreeinEnglishforscienceandtechnology.LaterLuYongxingraduatedfromCurtinUniversityandobtainedmaster’sdegreeinprojectmanagement.LuYongxinnowholdsthepostofDeputyGMoftheCompany,DeputyGeneralManagerofChinaMerchantsPortHoldingsCompanyLimited(CMPortHoldings).LuYongxinhassuccessivelyheldthepostsofAssistantGeneralManagerofZhenhuaConstructionCo.Ltd.,DeputyDirectorofCHEC(Beijing)HeadOffice,DeputyGeneralManagerofResearch&DevelopmentDepartmentofChinaMerchantsPortHoldingsCompanyLimited(CMPortHoldings),GeneralManagerofOverseasBusinessDepartment,AssistantGeneralManager.LuYongxinhasbeendispatchedtoTerminalLinkinFrancetoactasCFOandSeniorVicePresident.LuYongxinhasbeenastheDeputyGMoftheCompanysinceDecember2018andtheActingCFOoftheCompanysinceMay2020.LiYubin,ViceGMandActingSecretaryoftheBoard,graduatedfromTianjinUniversity,majoringinHarborandCannelEngineeringwiththebachelorofengineeringdegree,TianjinUniversity,majoringinengineeringmanagement,andobtainedmaster’sdegree.LaterLiYubingraduatedfromTheUniversityofHongKongandobtaineddoctor’sdegreeinrealestateandconstruction.LiYubinnowholdsthepostofDeputyGMandChiefDigitalOfficeroftheCompanyandDeputyGeneralManagerofChinaMerchantsPortHoldingsCompanyLimited(CMPortHoldings).LiYubinhassuccessivelyheldthepostsofDeputyGeneralManagerofRoadandBridgeProjectofChinaHarborCompanyinBangladeshiOffice,ProjectDirectorofOverseasBusinessDepartmentofCHEC,AssistantGeneralManagerofPlanningandCommerceDepartment,R&DDepartmentandOverseasBranchesDepartmentofChinaMerchantsHoldings(International)CompanyLimited,GeneralManager,DeputyGeneralEconomistofStrategyandOperationManagementDepartmentofChinaMerchantsPortHoldingsCompanyLimited(CMPortHoldings)&GeneralManagerandChairmanoftheBoardofChinaMerchantsBondedLogisticsCo.,Ltd.andtheChiefRepresentativeofRepresentativeOfficeofChinaMerchantsGroupinDjibouti.LiYubinhasbeenactingtheViceGMoftheCompanysinceDecember2018andtheActingSecretaryoftheBoardoftheCompanysinceJanuary2021.XuSong,ViceGM,holdsabachelor'sdegreeinMaterialManagementoftheHuazhongUniversity
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
ofScienceandTechnology,MasterofBusinessAdministration(MBA)oftheDongbeiUniversityofFinance&Economics,MasterofInternationalBusiness(MIB)oftheCoventryUniversity,andPh.D.inTransportationPlanningandManagementoftheDalianMaritimeUniversity.HeisalsoaSeniorEconomist.HeusedtoworkasDeputyGeneralManageratDalianPortContainerCo.,Ltd.;DeputyGeneralManagerandGeneralManageratDalianPortJifaLogisticsCo.,Ltd.;SecretaryofthePartyCommitteeandGeneralManageratDalianPortContainerCo.,Ltd.;GeneralManageratDalianPortNorthernHuanghaiSeaPortCooperativeManagementCompany;GeneralManageratDalianPort(PDA)CompanyLimited;DeputyGeneralManager,director,andGeneralManagerandDeputySecretaryofthePartyCommitteeofDalianPort;andDeputyGeneralManagerandmemberofthePartyCommitteeofLiaoningPortGroupCo.,Ltd.HehasbeenDeputyGeneralManageroftheCompanysinceOctober2020.LiuLibing,GeneralCounsel,graduatedfromtheDepartmentofPhilosophy,SchoolofPhilosophy,WuhanUniversitywithaBachelorinPhilosophy.Later,hepursuedfurtherstudyatSunYat-senUniversitySchoolofLawandobtainedaMasterofLaws.HeservedasasecretaryatChinaConstructionThirdEngineeringBureauGroupCo.,Ltd.,Director-generalatChinaConstructionShenzhenDecorationCo.,Ltd.,ProductionSupervisoratShenzhenFoxconn(Group)Company,apprenticelawyerandlawyeratCityDevelopmentLawFirm,ShenzhenBranch,ManagerattheLegalAffairsDepartmentandSeniorManagerofChinaMerchantsPropertyDevelopmentCo.,Ltd.,ManagerattheLegalAffairsDepartmentofChinaMerchantsGroupCo.,Limited,SeniorManagerattheRiskManagementDepartmentofChinaMerchantsGroupCo.,Limited,andSeniorManageroftheGeneralOfficeandheadoftheSecretariatoftheBoardofDirectorsatChinaMerchantsGroupCo.,Limited.HehasbeentheGeneralCounseloftheCompanysinceAugust2020.Officesheldconcurrentlyinshareholdingentities:
□Applicable√NotapplicableOfficesheldconcurrentlyinotherentities:
| Name | Otherentity | Officeheldintheentity | Startoftenure | Endoftenure | Remunerationorallowancefromtheentity |
| DengRenjie | ChinaMerchantsGroupCo.,Limited | ViceGM | March2015 | Yes | |
| DengRenjie | LiaoningPortGroup | ChairmanoftheBoard | November2018 | No |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| DengRenjie | YingkouPortGroupCo.,Ltd. | ChairmanoftheBoard | April2019 | No | |
| DengRenjie | ChinaMerchantsSteamshipCo.,Ltd. | ChairmanoftheSupervisoryCommittee | June2017 | March2020 | No |
| DengRenjie | ChinaMerchantsSteamshipCo.,Ltd. | Director | March2020 | No | |
| DengRenjie | ChinaMerchantsGroup(H.K.)Limited | Director | December2015 | No | |
| DengRenjie | DalianPortGroupCorporationLimited | ChairmanoftheBoard | May2019 | No | |
| BaiJingtao | LiaoningPortGroup | Director | April2020 | No | |
| BaiJingtao | TerminalLink | Director | June2017 | No | |
| BaiJingtao | ShanghaiInternationalPort(Group)Co.,Ltd. | ViceChairmanoftheBoard | June2016 | No | |
| BaiJingtao | ChinaMerchantsTaipingBayDevelopmentInvestmentCo.,Ltd. | Director | April2020 | No | |
| BaiJingtao | ChinaMerchantsNortheastAsiaDevelopmentInvestmentCo.,Ltd. | Director | April2020 | No | |
| YanShuai | ChinaMerchantsGroup(Shanghai)Co.,Limited | Director | July2016 | No | |
| SongDexing | ChinaMerchantsGroupCo.,Limited | DirectorofTransportation&LogisticsBusiness | May2019 | No | |
| SongDexing | ChinaMerchantsGroupCo.,Limited | MinisterofTransportation&LogisticsDivision/MinisteroftheHeadquartersoftheGroupinBeijing | August2018 | No | |
| SongDexing | SINOTRANS&CSC | GM | June2016 | Yes | |
| SongDexing | SINOTRANS&CSC | Executivedirector | September2016 | Yes | |
| SongDexing | NanjingPort(Group)Co.,Ltd. | ChairmanoftheBoard | October2017 | April2020 | No |
| SongDexing | ChinaMerchantsEnergyShippingCo.,Ltd. | ViceChairmanoftheBoard | August2018 | No | |
| SongDexing | LiaoningPortGroup | Director | September2019 | No | |
| SongDexing | SinotransLimited | ViceChairmanoftheBoard | June2018 | No | |
| SongDexing | SinotransLimited | Executivedirector | December2016 | No | |
| ZhangYi | LiaoningPortGroup | Director | July2020 | No |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| ZhangYi | LiaoningPortGroup | GM | April2020 | No | |
| ZhangYi | ChinaMerchantsTaipingBayDevelopmentInvestmentCo.,Ltd. | ViceChairmanoftheBoard | April2020 | No | |
| ZhangYi | ChinaMerchantsNortheastAsiaDevelopmentInvestmentCo.,Ltd. | Director | April2020 | No | |
| ZhangYi | ChinaMerchantsHainanDevelopment&InvestmentCo.,Ltd. | Director | December2018 | No | |
| LiuYingjie | SinotransLimited | ChairmanoftheSupervisoryCommittee | March2019 | No | |
| LiuYingjie | ChinaMerchantsGroupFinanceCo.,Ltd. | ChairmanoftheSupervisoryCommittee | August2019 | No | |
| LiuYingjie | ChinaYangtzeShippingGroupCo.,Ltd. | ChairmanoftheSupervisoryCommittee | November2017 | No | |
| HuQin | ChinaMerchantsPortInvestmentDevelopmentCompanyLimited | Supervisor | May2015 | No | |
| HuQin | ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | Supervisor | May2017 | No | |
| HuQin | ChinaMerchantsHainanDevelopment&InvestmentCo.,Ltd. | Supervisor | December2018 | No | |
| YangYuntao | ChinaYangtzeShippingGroupCo.,Ltd. | Director | December2018 | No | |
| YangYuntao | ChinaMerchantsEnergyShippingCo.,Ltd. | ViceGM&GeneralCounsel | December2020 | Yes | |
| ZhengShaoping | NingboDaxieChinaMerchantsInternationalContainerTerminalCo.,Ltd. | Director | April2014 | No | |
| ZhengShaoping | NingboZhoushanPortCompanyLimited | Director | April2015 | No | |
| ZhengShaoping | TianjinPortContainerTerminalCo.,Ltd. | Director | September2019 | No | |
| ZhengShaoping | ChinaMerchantsInternationalContainerTerminal(Qingdao)Co.,Ltd. | Director | October2019 | No | |
| ZhengShaoping | QingdaoPortChinaMerchantsInternationalContainerTerminalCo.,Ltd. | Director | October2016 | No | |
| ZhengShaoping | QingdaoPortDongjiakouOreTerminalCo.,Ltd. | Director | March2017 | No | |
| ZhengShaoping | ShanghaiInternationalPort(Group)Co.,Ltd. | Director | May2014 | No | |
| ZhengShaoping | ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd. | Director | August2016 | No |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| ZhengShaoping | AntongHoldingsCo.,Ltd. | ChairmanoftheBoard | September2019 | No | |
| ZhengShaoping | ChinaMerchantsAntongLogisticsManagementCo.,Ltd. | ChairmanoftheBoard | September2019 | No | |
| LuYongxin | KumportLimanHizmetleriveLojistikSan.veTic.A.?. | ChairmanoftheBoard | December2019 | No | |
| LuYongxin | LOMECONTAINERTERMINALS.A. | ChairmanoftheBoard | November2019 | No | |
| LuYongxin | TerminalLink | Director | March2020 | No | |
| LuYongxin | Tin-canIslandContainerTerminalLtd | ViceChairmanoftheBoard | July2019 | No | |
| LiYubin | MODERNTERMINALSLIMITED | Director | March2015 | No | |
| LiYubin | ShenzhenLianyongtongTerminalCo.,Ltd. | Director | January2014 | No | |
| LiYubin | SilkRoadYishangInformationTechnologyCo.,Ltd. | ChairmanoftheBoard | January2019 | No | |
| Note | Officesofdirectors,supervisor,andseniormanagementheldconcurrentlyinotherentitiesexcludeofficesheldintheCompanyandsubsidiarieswithintheconsolidationscope. | ||||
Punishmentsimposedintherecentthreeyearsbythesecuritiesregulatorontheincumbentdirectors,supervisorsandseniormanagementaswellasthosewholeftintheReportingPeriod:
□Applicable√NotapplicableIVRemunerationofDirectors,SupervisorsandSeniorManagementDecision-makingprocedure,determinationbasisandactualpaymentsofremunerationfordirectors,supervisorsandseniormanagement:
Decision-makingprocedurefortheremunerationofdirectors,supervisorsandseniormanagement:
RemunerationsfortheCompany’sdirectors,supervisorsandseniormanagementshallbenominatedbytheBoardofDirectorsanddetermineduponreviewoftheRemunerationandAppraisalCommittee.Allowanceforthe9
th
IndependentDirectorsisRMB150,000/year(taxincluded),whichhasbeenapprovedatthe3
rd
ExtraordinaryGeneralMeetingof2018.Allowanceforthe10
th
IndependentDirectorsisRMB150,000/year(taxincluded),whichhasbeenapprovedatthe2019AnnualGeneralMeeting.Determiningbasisfortheremunerationofdirectors,supervisorsandseniormanagement:Themodesandamountsoftheremunerationfordirectors,supervisorsandseniormanagementaredeterminedaccordingtothemarketlevelswiththepostvalue,responsibilities,etc.takenintoaccount.Actualpaymentfortheremunerationofdirectors,supervisorsandseniormanagement:Salariesand
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
independentdirectorallowanceswerepaidtodirectors,supervisorsandseniorexecutivesonamonthlybasis.Andtheotherbonuseswerepaidallatonetimeaccordingtotheperformanceofeachofthem.Remunerationofdirectors,supervisorsandseniormanagementfortheReportingPeriod
| Name | Officetitle | Gender | Age | Incumbent/Former | Totalbefore-taxremunerationfromtheCompany(RMB’0,000) | Anyremunerationfromrelatedparty |
| DengRenjie | ChairmanoftheBoard | Male | 51 | Incumbent | 0 | Yes |
| BaiJingtao | ViceChairmanoftheBoardandCEO | Male | 55 | Incumbent | 305 | No |
| YanShuai | Director | Male | 48 | Incumbent | 0 | Yes |
| SongDexing | Director | Male | 58 | Incumbent | 0 | Yes |
| ZhangYi | Director,COOandGM | Male | 50 | Incumbent | 271 | No |
| GaoPing | Independentdirector | Male | 65 | Incumbent | 9 | No |
| WangZhenmin | Independentdirector | Male | 54 | Incumbent | 9 | No |
| LiQi | Independentdirector | Female | 50 | Incumbent | 9 | No |
| LiuYingjie | ChairmanoftheSupervisoryCommittee | Male | 49 | Incumbent | 0 | Yes |
| HuQin | Supervisor | Female | 54 | Incumbent | 0 | Yes |
| YangYuntao | Supervisor | Male | 54 | Incumbent | 0 | Yes |
| GongMan | Supervisor | Female | 32 | Incumbent | 33 | No |
| XuJia | Supervisor | Male | 39 | Incumbent | 33 | No |
| ZhengShaoping | ViceGM | Male | 58 | Incumbent | 260 | No |
| LuYongxin | ViceGMandActingCFO | Male | 51 | Incumbent | 210 | No |
| LiYubin | ViceGMandActingSecretaryoftheBoard | Male | 49 | Incumbent | 333 | No |
| XuSong | ViceGM | Male | 49 | Incumbent | 29 | No |
| LiuLibing | GeneralCounsel | Male | 48 | Incumbent | 45 | No |
| FuGangfeng | FormerChairmanoftheBoard | Male | 54 | Former | 0 | Yes |
| SuJian | FormerDirector | Male | 49 | Former | 0 | Yes |
| YuanYuhui | FormerIndependentdirector | Male | 70 | Former | 6 | No |
| SuQiyun | FormerIndependentdirector | Male | 57 | Former | 6 | No |
| LiChangqing | FormerIndependentdirector | Male | 52 | Former | 6 | No |
| NiKeqin | FormerSupervisor | Female | 56 | Former | 83 | No |
| ZhengLinwei | FormerSupervisor | Male | 50 | Former | 85 | No |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Equityincentivesfordirectors,supervisorsandseniormanagementintheReportingPeriod:
On3February2020,theCompanyheldthe1
st
ExtraordinaryGeneralMeetingof2020,atwhichthefollowingmatterswerereviewedandapproved:StockOptionsIncentivePlan(Draft)anditsAbstract,StockOptionsIncentivePlan(PhaseI)(RevisedDraft)anditsAbstract,ManagementMethodforStockOptionsIncentivePlan,ExaminationMethodforImplementationofStockOptionsIncentivePlanandProposalonAuthorizationtotheBoardtoHandleMattersinRelationtoStockOptionsIncentive.ThedetailsaboutthestockoptionsgrantedtodirectorsandseniormanagementoftheCompanyintheincentiveplanareasfollows:
| HuangChuanjing | FormerViceGMandFormerSecretaryoftheBoard | Male | 38 | Former | 233 | No |
| WenLing | FormerCFO | Female | 55 | Former | 89 | No |
| Total | -- | -- | -- | 2,054 | -- |
| No. | Name | Officetitle | Sharesgranted(tenthousandshares) | As%oftotalgranted | As%oftotalsharecapital |
| 1 | BaiJingtao | ViceChairmanoftheBoardandCEO | 42.0 | 2.37% | 0.022% |
| 2 | YanShuai | Director | 42.0 | 2.37% | 0.022% |
| 3 | ZhangYi | Director,COOandGM | 35.0 | 1.97% | 0.018% |
| 4 | ZhengShaoping | ViceGM | 35.0 | 1.97% | 0.018% |
| 5 | LuYongxin | ViceGMandActingCFO | 24.0 | 1.35% | 0.012% |
| 6 | LiYubin | ViceGMandActingSecretaryoftheBoard | 24.0 | 1.35% | 0.012% |
| 7 | HuangChuanjing | FormerViceGMandFormerSecretaryoftheBoard | 24.0 | 1.35% | 0.012% |
| 8 | WenLing | FormerCFO | 24.0 | 1.35% | 0.012% |
| 142coremanagers | 1,205.8 | 68.02% | 0.627% | ||
| 88coremanagementbackbonesandtechnicalbackbonesofcorebusinesses | 264.0 | 14.89% | 0.137% | ||
| Sharesreserved | 53.0 | 3% | 0.028% | ||
| Total | 1,772.8 | 100% | 0.922% | ||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Atthe1
stExtraordinaryMeetingofthe10
thBoardofDirectorsin2021andthe1
stExtraordinaryMeetingofthe10
thSupervisoryCommitteein2021heldon29January2021,ProposalontheGrantofStockOption(theReserved)toIncentiveObjectsoftheStockOptionIncentivePlan(PhaseI)oftheCompanywasconsideredandapprovedrespectively.ThestockoptionsgrantedtodirectorsandseniormanagementoftheCompanyfortheincentiveplanareasfollows:
| No. | Name | Officetitle | Numberofstockoptionsgranted(tenthousandshares) | As%oftotalgranted | As%oftotalsharecapital |
| 1 | XuSong | ViceGM | 24 | 1.35% | 0.012% |
| 2 | LiuLibing | GeneralCounsel | 5 | 0.29% | 0.003% |
| 1coremanager | 24 | 1.35% | 0.012% | ||
| Total3people | 53 | 2.99% | 0.028% | ||
VEmployees
1.Number,FunctionsandEducationalBackgroundsofEmployees
| Numberofin-serviceemployeesoftheCompanyastheparent | 330 |
| Numberofin-serviceemployeesofmajorsubsidiaries | 15,289 |
| Totalnumberofin-serviceemployees | 15,619 |
| TotalnumberofpaidemployeesintheReportingPeriod | 15,619 |
| NumberofretireestowhomtheCompanyastheparentoritsmajorsubsidiariesneedtopayretirementpensions | 9,513 |
| Functions | |
| Function | Employees |
| Production | 8,358 |
| Sales | 592 |
| Technical | 3,472 |
| Financial | 556 |
| Administrative | 2,641 |
| Total | 15,619 |
| Educationalbackgrounds | |
| Educationalbackground | Employees |
| Master’sdegreeandabove | 541 |
| Bachelor’sdegree | 4,034 |
| Juniorcollege | 3,801 |
| Technicalsecondaryschoolandbelow | 7,243 |
| Total | 15,619 |
2.EmployeeRemunerationPolicyTheCompanyperfectedtheremunerationincentivemechanismthatwasmarket-oriented,commensuratewitheconomicbenefits,andconnectedwithlaborproductivity,inlinewiththeprincipleofgivingprioritytoefficiencyandtakingcountofequitysimultaneously,inordertoreinforcevitalityandpower.Byoptimizingtheremunerationsystem,theCompanyeffectively
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
raiseditsmarketcompetitivenessandattractedandretainedexcellentmanagementpersonnelandbusinessbackbone.Besides,newincentivemechanismswereproposed.Mid-andlong-termincentiveswerecombinedwithshort-termonestoachievelong-termdevelopment.ThehumanresourcesmanagementsystemwasfullyoptimizedandstreamlinedduringthedevelopmentofasmartHRmanagementplatform.Standardizedproceduresforobjectivesetting,communication,inspection,andfeedbackwereformulated,basedonasmartperformancesystem.Businessassessmentresultswereconsideredasanimportantbasisofbonusestofullymobilizetheenthusiasmofemployees.In2020,theCompanysuccessfullyintroducedtheemployeeincentivescheme.Theemployeeincentiveschemeinthefirstphasewasgranted.AmechanismforsharingofprofitsandrisksamongtheCompanyanditsshareholdersandemployeeswascreated.Theplanwasfavorabletoimproveshareholdervalueandsafeguardowners'rightsandinterests.Additionally,itsupportedstrategyimplementationandlong-termsustainabledevelopmentoftheCompany.Middleandseniormanagementpersonnelandcoreelitesreceivedtargetedincentives.AmidtheadverseimpactoftheCOVID-19epidemicin2020,theCompanyendeavoredtoconsolidateitsinternalstrength.Quality,effectiveness,andpercapitaefficiencywerestrengthenedbydeeplyexploringrelevantindicatorsliketheprofitrateoflaborcostsandadoptingeffectivemeasures.Externally,theCompanyfullyutilizedpreferentialpolicies,suchasreductionandexemptionofsocialinsuranceandfiscalsubsidies,torelieveoperatingpressureandorderlyresumeworkandproduction.Duringthespecialperiodofepidemicpreventionandcontrol,theCompanystrovetoperformitscorporatesocialresponsibilitiesandgavetopprioritytothehealthandsafetyofitsemployees.Itcaredaboutboththephysicalandmentalhealthofitsemployeesandprovideditsemployeesandtheirfamilymemberswithpsychologicalguidance.Inaddition,specialfundswereinputtopreventandcontrolthevirusandminimizetheimpact.Moreincentivesweregrantedtofront-linestaffengaginginpandemicpreventionandcontrol.Advancedmodelswerecommended.TheCompanysparednoeffortforemployeecare.
3.EmployeeTrainingPlansFocusingonitsstrategicgoals,theCompanyisdedicatedtocreatingaplatformforthedevelopmentandpromotionofglobalportprofessionals,providesdomesticandforeignemployeeswithlearningopportunities,openschannelsforglobalcareerdevelopmentandhelpsemployeestokeep
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
improvingthemselveswiththedevelopmentoftheCompany.Meanwhile,itprovidesitspeerswithopportunitiesofcomingtoChinaforexchangetoshareknowledgeandvalues.In2020,CMPort(i.e.,theCompany)rapidlyadjusteditstrainingmethodsinconsiderationofthepandemic.Onlinetrainingreplacedofflineintensivetraining.Over700courseswereuploadedtotheonlineplatform,mostofwhichwereanti-pandemicinformationandknowledge.Theonlinelearningdemandofemployeesduringthepandemicwaseffectivelysatisfiedthroughpostsandexams.Averagemonthlyactiveusersaccountedfor96.2%ofthetotalemployees.Meanwhile,theonlineplatformwasfullyappliedtotraining.Allmembersutilizedtheonlineplatformtoproducelivestreamingandonlinecoursesanddevelopinternalqualitycourses.Asaresult,thecoverageoftrainingduringthepandemicwasexpanded.Companiesdeepenedcollaborationintraining.PandemicpreventionandcontrolacrosstheGroupwerestronglypromoted.Thepandemicwasalleviatedinthesecondhalfof2020.TheCompanyintegratedinternalandexternaltrainingresourcestoofferaseriesoftrainingprogramscenteringonkeytopics.Forexample,seniorexecutiveswereorganizedtolearnnewinfrastructureconstruction.TheFinancialTalentCultivationProgramoftheCompanywaslaunched.TheCompanyjoinedhandswithprofessionalinstitutionstoimprovetheprofessionalandcommonskillsofemployeesthroughinternal,public,livestreaming,andonlinecourses.Severalsessionsofthe"ChinaMerchantsC-BlueTrainingProgram"(hereinafterreferredtoasthe"C-BlueProgram")havebeenheldbyCMG,winninggoodreputationandresults.TheCOVID-19epidemicin2020posedchallengestotheC-BlueProgram.Astheepidemiccouldnotbecontainedwithinashorttime,CMPortovercamedifficultiesandcooperatedwiththeUniversityofDjiboutitojointlycreateinnovativeonlinecourses.On17November2020,theChinaMerchantsC-BlueTrainingProgram-Sailing(DjiboutiSession)kickedoffintheChinaMerchantsPortPlazaandtheUniversityofDjiboutibyvideoconference,whichwasrecognizedbytheMinistryofTransportofthePeople'sRepublicofChinaandtheMinistryofHigherEducationandResearchofDjibouti.TheC-BlueProgram-SailingnotonlydemonstratedCMG’smissionandsincerityof"promotetheprogressofthetimeswithcommercialsuccess"totheworld,butalsocultivatedtalentreservefortheglobalportandshippingindustryandcontributedtothequalityeconomicdevelopmentofcountriesalongthe"BeltandRoad"Initiative.
4.LaborOutsourcing
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Totalman-hours(hour) | N/A |
| Totalremunerationpaid(RMB) | RMB1,192,878,137.75 |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartXCorporateGovernanceIGeneralInformationofCorporateGovernance
Eversinceitsestablishment,theCompanyhasbeeninstrictcompliancewiththeCompanyLawandSecuritiesLaw,aswellasrelevantlawsandregulationsissuedbyCSRC.AndithastimelyformulatedandamendeditsrelevantmanagementrulesaccordingtotheCodeofCorporateGovernanceforListedCompanies,whichareconscientiouslyandcarefullyexecuted.AneffectivesystemofinternalcontrolhasthustakenshapeintheCompany.DetailsaboutcorporategovernancewithintheReportingPeriodaresetoutasbelow:
1.DuringtheReportingPeriod,theCompanyrevisedtwosystems.TheCompanyrevisedtheRulesofProceduresforOfficeMeetingsbasedontheactualoperationsituation,inwhichformalparticipantsandformalpersonspresenthavebeensupplemented.Meanwhile,inaccordancewiththerequirementoflegalsystembuildingfromSASACandnewlyissuedGuidelinesofShenzhenStockExchangeforStandardOperationsofListedCompanies,theCompanyrevisedtheWorkingArticlesofAuditCommitteeoftheBoardofDirectors,inwhichtheCompanyincreasedthedescriptionofresponsibilitiesrelatedtopromotingthelegalsystembuildingandstrengthenedthefunctionoftheBoardinthelegalsystembuilding.Thedetailedinformationisasfollows:
| Nameofsystem | Review | Disclosure |
| Systemrevised | ||
| RulesofProceduresforOfficeMeetings | Hasbeenreviewedandapprovedonthe2ndMeetingofthe10thBoardofDirectorsheldon27August2020. | HasbeendisclosedonCninfointime |
| WorkingArticlesofAuditCommitteeoftheBoardofDirectors | ||
2.Thespecialactionof"performingentityresponsibilities,improvinggovernance,andachievingqualitydevelopment"wasimplementedTheCompanyimplementedthespecialactionof"performingentityresponsibilities,improvinggovernance,andachievingqualitydevelopment",inconformitywiththeNoticeofShenzhenCSRConPromotingListedCompaniesWithinJurisdictiontoPerformEntityResponsibilities,ImproveGovernance,andAchieveQualityDevelopment(S.Z.J.G.S.Z.[2020]No.128,hereinafterreferredtoasthe"Notice"),inordertoimplementtheOpinionsofStateCouncilonFurtherImprovingQualityofListedCompanies(G.F.[2020]No.14,hereinafterreferredtoasthe"Opinions").The
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
mainworkcontentisasfollows:
UponreceiptoftheNotice,theCompanytimelyforwardittothecontrollingshareholderandpersonsactinginconcert.Meanwhile,directors,supervisors,andseniorexecutivesoftheCompanyanditsimportantsubsidiarieswereorganizedtolearntheOpinionsandtheNotice.TheCompanyperformeddeepself-inspection,afterconscientiouslystreamlining10requirements,including"improvingcorporategovernance,prohibitingfinancialfrauds,completelyeradicatingillegalguaranteeandfundembezzlement,constantlystrengtheningpreventionandcontrolofinsiderdealing,activelymobilizingsubstantialshareholderstopreventandmitigatetheriskofthepledgeofstockrights,reasonablyandsteadilyconductingM&Asandrestructuring,conscientiouslydisclosinginformationonchangesininterestinsharesoflistedcompanies,performingallcommitmentsinalegalandcompliantmanner,prudentlyengagingauditors,andhighlightinginvestorrelationmanagement".Besides,itcompiledtheSelf-inspectionReportonPromotingListedCompaniestoPerformEntityResponsibilities,ImproveGovernance,andAchieveQualityDevelopment(hereinafterreferredtoasthe"Report").Theself-inspectiondidnotidentifyanyviolationsbytheCompany.Hence,theCompanywillimprovethefollowingaspects:First,itwillfurtherenhanceitscorporategovernanceandstandardizedoperation.Itwillcontinuouslyimproverelevantinternalcontrolpoliciesandestablishandperfectthecorporategovernancestructureandtheinternalcontrolsysteminaccordancewiththelatestlaws,regulations,andregulatoryrequirementsaswellasitsactualsituation.Second,trainingandpublicityofrelevantregulationswillbereinforced.TheProposalonPromotingListedCompaniestoPerformEntityResponsibilities,ImproveGovernance,andAchieveQualityDevelopment(AnnouncementNo.:2020-088,seetheCninfowebsitefordetails)wasconsideredandapprovedatthe3
rd
ExtraordinaryMeetingofthe10
thBoardofDirectorsin2020.Inaddition,theReportwassubmittedtotheShenzhenCSRC.TheCompanywillseizeopportunitiesbroughtbythisspecialactionandkeepinmind"FourAwes"andtheFourBottomLinesof"nodisclosureoffalseinformation,noinsiderdealing,nomanipulationofmarketprices,andnodamagetointerestsoflistedcompanies".Itwillcontinuetointensifystandardizedoperationanddisclosequalityinformation.Additionally,itwillattachmoreimportancetolistedcompanygovernance,shareholderreturns,improvementoffinancial
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
informationquality,andinvestorrelationshipmanagement,furtherimprovingthequalityoflistedcompanies.TheCompanywillendeavortoboostthesteadyandwholesomeprogressofthecapitalmarketandachievemorewin-winsuccessamidthebenigninteractioninthecapitalmarket.
3.Shareholdersandshareholders’generalmeeting:theCompanyensuresthatalltheshareholders,especiallyminorityshareholders,areequalandcouldenjoytheirfullrights.TheCompanycalledandheldshareholders’generalmeetingstrictlyincompliancewiththeRulesforShareholders’GeneralMeeting.
4.RelationshipbetweenthecontrollingshareholderandtheCompany:controllingshareholderoftheCompanyactedinlinewithrulesduringthereportingperiod,didnotintervenedthedecisions,productionsoroperationsoftheCompanydirectlyorindirectlyinexceedingtheauthorityoftheshareholders’generalmeeting,anddidnotoccupyanyfundsoftheCompany.
5.DirectorsandtheBoardofDirectors:theCompanyelecteddirectorsinstrictaccordancewiththeArticlesofAssociation.NumberandcompositionofmembersoftheBoardwereincompliancewithrelevantlawsandregulations;allDirectorsattendBoardmeetingsandshareholders’generalmeetinginaseriousandresponsiblemannerandparticipatedenthusiasticallyrelevanttrainingsoastoknowbetteraboutlawsandregulationsaswellastherights,obligationsandliabilitiesofDirectors.TheCompanyTheCompanysetuptheAuditCommitteeasapprovedbyThe1
st
ExtraordinaryGeneralMeetingof2004andtheNomination,RemunerationandEvaluationCommitteeandStrategyCommitteeasapprovedbythe2005AnnualGeneralMeeting,withaviewtoensuringtheefficientoperationandscientificdecision-makingoftheBoardofDirectors.
6.SupervisorsandtheSupervisoryCommittee:numberandcompositionofthemembersoftheSupervisoryCommitteewereincompliancewiththerequirementsoflawsandregulations.Thesupervisorsdiligentlyandseriouslyperformedtheirdutiesandobligations,tookresponsibleattitudestoallshareholdersandsupervisedthefinancialaffairaswellastheperformancebytheCompany’sDirectors,managersandotherseniorexecutivesoftheirdutiesincompliancewiththelawsandregulations.
7.Stakeholders:theCompanyfullyrespectedandsafeguardedthelegalrightsandinterestsofthebanksandothercreditors,staff,clientsandotherstakeholderssoastodeveloptheCompanyinaconsistentandhealthyway.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
8.Informationdisclosureandtransparency:Asthedepartmentforthemanagementofinformationdisclosure,theBoardofDirectorsoftheCompanyisresponsibleformanagingtheinformationdisclosuremattersoftheCompany.ChairmanoftheBoardassumesacentralroleinmanagingtheinformationdisclosuremattersoftheCompanywhiletheBoardSecretaryisresponsiblefororganizingandcoordinatingsuchmatters.TheBoardSecretaryoftheCompanyisresponsibleforthemanagementofinvestorrelationships.Unlessexpresslyauthorizedandtrained,otherdirectors,supervisors,seniormanagementmembersandstaffmembersoftheCompanyshouldavoidspeakingonbehalfoftheCompanyininvestorrelationshipactivities.TheCompanydisclosedrelevantinformationinatrue,accurate,completeandtimelywayinstrictaccordancewiththerequirementsoflaws,regulationsandtheArticlesofAssociation,formulatedtheManagementRulesonInformationDisclosure,theManagementSystemonInsideInformationandInsidersandtheRulesontheManagementofInvestorsRelations,anddesignatedSecuritiesTimes,ShanghaiSecuritiesNews,TaKungPaoandhttp://www.cninfo.com.cnasitsnewspaperandwebsiteforinformationdisclosure,soastoensureallshareholdershaveequalopportunitytoobtaintheinformation.
9.CorporategovernancemechanismsandrulesthattheCompanyhasalreadyestablished:
ArticlesofAssociationoftheCompany,RulesofProcedureforGeneralMeetings,WorkingArticlesofAuditCommitteeoftheBoardofDirectors,WorkingRulesofAnnualReportforAuditCommitteeoftheBoardofDirectors,WorkingArticlesforNomination,RemunerationandEvaluationCommitteeoftheBoardofDirectors;WorkingArticlesofStrategyCommitteeoftheBoardofDirectors,WorkingSystemforIndependentDirectors,WorkingRulesofAnnualReportforIndependentDirectors,RulesofProcedureforSupervisoryBoard,WorkingArticlesofChiefExecutiveOfficer,ManagementSystemforCompanySharesheldbyDirectors,SupervisorsandSeniorExecutivesandItsChanges,ManagementSystemofForeignInvestment,ManagementSystemofRelatedTransactions,ManagementSystemofFund-raising,ManagementRulesonInformationDisclosure,RulesofAccountabilityforSignificantMistakesinAnnualReportInformationDisclosure,ManagementSystemonInsideInformationandInsiders,InternalAuditSystem,ManagementSystemofInvestors’Relations,SpecificSystemforEngagingAccountants,ManagementMethodofFinancialTools,ManagementSystemonPersoninChargeofFinanceand
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
CFO,InformationDisclosureManagementRulesfortheInter-bankDebtFinancingInstrument,ManagementSystemofExternalGuarantees,WorkingArticlesofBoardSecretary,ManagementSystemofSecuritiesInvestments,ManagementSystemofSubsidiaries,ManagementMethodofDonations,RulesofProceduresforOfficeMeetingetc.Thereisn’tdifferencebetweentheactualcircumstancesoftheCompanyandallestablishedsystems.Sincethefoundation,theCompanywasconsistentlyinstrictaccordancewithCompanyLawandrelevantlawsandregulationstomakeastandardoperation,continuedbusiness-runninginlinewithrelevantrequirementsofCorporateGovernancePrincipleforListedCompaniesandearnestlymadeefforttoprotectprofitandinterestsofshareholdersandstakeholders.IndicatebytickmarketwhetherthereisanymaterialincompliancewiththeregulatorydocumentsissuedbytheCSRCgoverningthegovernanceoflistedcompanies.
□Yes√NoNosuchcasesintheReportingPeriod.IITheCompany’sIndependencefromItsControllingShareholderinBusiness,Personnel,Asset,OrganizationandFinancialAffairsTheCompanyisabsolutelyindependentinbusiness,personnel,assets,financeandorganizationfromitscontrollingshareholder.Detailsaresetoutasfollows.Separationinbusiness:TheCompanyhasitsownassets,personnel,qualificationsandabilitytocarryoutoperatingactivitiesandisabletooperateindependentlyinthemarket.Separationinpersonnel:TheCompanyhasbasicallyseparateditsstafffromitscontrollingshareholder.NoseniormanagementstaffoftheCompanyholdspositionsatcontrollingshareholderoftheCompany.Separationinassets:TheCompanypossessesitsownself-governedassetsanddomicile.Separationinorganization:TheCompanyhasestablishedandimprovedthecorporategovernancestructureaccordingtolawandhasanindependentandcompleteorganizationalstructure.Separationinfinance:TheCompanyhassetupitsownfinancialdepartmentaswellasnormativeaccountingsystemandthefinancialmanagementsystemonitssubsidiaries.TheCompanyhasitsownbankaccountsanddoesnotsharethesamebankaccountwithitscontrollingshareholder.TheCompanyhasbeenpayingtaxinaccordancewiththelawsandregulationsonitsownbehalf.IIIHorizontalCompetition
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
□Applicable√NotapplicableIVAnnualandSpecialGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Indextodisclosedinformation |
| The1stExtraordinaryGeneralMeetingof2020 | ExtraordinaryGeneralMeeting | 88.69% | 3February2020 | 4February2020 | Fortheresolutionannouncement(No.2020-011),seehttp://www.cninfo.com.cn |
| The2019AnnualGeneralMeeting | AnnualGeneralMeeting | 90.18% | 22May2020 | 23May2020 | Fortheresolutionannouncement(No.2020-050),seehttp://www.cninfo.com.cn |
2.SpecialGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√NotapplicableVPerformanceofDutybyIndependentDirectorsintheReportingPeriod
1.AttendanceofIndependentDirectorsatBoardMeetingsandGeneralMeetings
(1)GeneralElectionofIndependentDirectorsFortheexpirationofappointmentsoftheindependentdirectorsofthe9
thBoardofDirectorsMr.YuanYuhui,Mr.SuQiyunandMr.LiChangqing,theCompanyheldthe2019AnnualGeneralMeetingforthegeneralelectionoftheBoardon22May2020,onwhich,Mr.GaoPing,Mr.WangZhenminandMrs.LiQiwereelectedastheindependentdirectorsofthe10
thBoardofDirectors.
(2)AttendanceofIndependentDirectorsatBoardMeetingsandGeneralMeetings
| Attendanceofthe9thindependentdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Independentdirector | Totalnumberofboardmeetingstheindependentdirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbytelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingstheindependentdirectorfailedtoattend | Theindependentdirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| YuanYuhui | 5 | 1 | 4 | 0 | 0 | No | 2 |
| SuQiyun | 5 | 1 | 4 | 0 | 0 | No | |
| LiChangqing | 5 | 1 | 4 | 0 | 0 | No | |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Attendanceofthe10thindependentdirectorsatboardmeetingsandgeneralmeetings | |||||||
| Independentdirector | Totalnumberofboardmeetingstheindependentdirectorwaseligibletoattend | Boardmeetingsattendedonsite | Boardmeetingsattendedbytelecommunication | Boardmeetingsattendedthroughaproxy | Boardmeetingstheindependentdirectorfailedtoattend | Theindependentdirectorfailedtoattendtwoconsecutiveboardmeetings(yes/no) | Generalmeetingsattended |
| GaoPing | 6 | 2 | 4 | 0 | 0 | No | 1 |
| WangZhenmin | 6 | 2 | 4 | 0 | 0 | No | |
| LiQi | 6 | 2 | 4 | 0 | 0 | No | |
Whyanyindependentdirectorfailedtoattendtwoconsecutiveboardmeetings:
□Applicable√Notapplicable
2.ObjectionsRaisedbyIndependentDirectorsonMattersoftheCompanyIndicatebytickmarkwhetheranyindependentdirectorsraisedanyobjectionsonanymatteroftheCompany.
□Yes√NoNosuchcasesintheReportingPeriod.
3.OtherInformationaboutthePerformanceofDutybyIndependentDirectorsIndicatebytickmarkwhetheranysuggestionsfromindependentdirectorswereadoptedbytheCompany.
√Yes□NoSpecificationofwhethersuggestionsfromindependentdirectorsareadoptedornotadoptedbytheCompanyDuringtheReportingPeriod,allindependentdirectorsoftheCompanyshowtheirprobityandself-discipline,fulfilltheirdutiesinlinewiththeirexpertiseandexperience;earnestlyanddiligentlyperformtheirduties.TheindependentdirectorsactivelyaskedforinformationabouttheCompany’sbusinessandoperation,protectedtheinterestsofminorityshareholders,broughttheirrolesasindependentdirectorsintofullplaybyparticipatingindiscussionsonreportsreviewedatboardmeetingsandotherissuesoftheCompany,andproposedprofessionalsuggestionsonstandardgovernanceandproductionoperationwhichhadbeenadoptedbytheCompany.Theycarefullyreviewedandissuedindependentopinionsinwrittenformonsignificanteventssuchasmaterialrelated-partytransactionsinaccordancewithrelevantrequirementsandhadplayedanimportantroleinscientificdecision-makingoftheBoard.InaccordancewiththerequirementsofCSRCandShenzhenStockExchange,the“WorkingRulesforIndependentDirectors”andthe“WorkingRulesforIndependentDirectorsConcerningAnnualReports”,theyperformedtheirobligationswithduediligenceandfullyoversawthepreparationanddisclosureoftheAnnualReportoftheCompany.
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Fordetailsofperformancebyindependentdirectorsoftheirduties,pleaserefertotheWorkReportofIndependentDirectorsfor2020asdisclosedathttp://www.cninfo.com.cn.VIPerformanceofDutybySpecializedCommitteesundertheBoardintheReportingPeriod(I)PerformanceoftheAuditCommitteeoftheBoardofDirectorsThemembersofthe9
thAuditCommitteeincludeIndependentDirectorLiChangqing(convener),DirectorSuJian,andIndependentDirectorSuQiyun.Thememberofthe10
th
AuditCommitteeincludeIndependentDirectorLiQi(convener),DirectorSuJian,andIndependentDirectorWangZhenmin.DuringtheReportingPeriod,theAuditCommitteeoftheBoardworkedinlinewiththerequirementsofCSRCandArticlesofAssociation,WorkingRulesfortheAuditCommitteeoftheBoard(hereinafterreferredtoasthe“WorkingRules”)andtheWorkingPracticesfortheAuditCommitteeoftheBoardonAnnualReport(hereinafterreferredtoasthe“WorkingPractices”),performedtheirduties,andgavefullplayoftheirexpertiseandexperiencetoearnestlyexaminetheCompany'sannualaudit,reviewoffinancialstatement,internalcontrol,andothersignificantfinancialinformation,andprovidetheBoardofDirectors’scientificandefficientdecision-makingwithprofessionalsupport.
1.ParticularsabouttheMeetingsDuringtheReportingPeriod,theAuditCommitteeoftheBoardheldatotalofsixmeetings,withdetailsasfollows:
(1)The1
stMeetingoftheAuditCommitteeofthe9
thBoardofDirectorsfor2020On14April2020,itwasheldatConferenceRoom25A,ChinaMerchantsPortPlaza,ShekouIndustry3
rdRoad,Shenzhenintheformofon-sitecombiningwithnetwork,atwhichthefollowingproposalswerereviewedandapprovedunanimously:
ProposalonWorkReportofAccountingFirmfor2019;ProposalonFinancialReportof2019;ProposalonRenewalofAppointmentofAccountingFirmfor2020;ProposalonAnti-fraudRiskAssessmentReportfor2019;ProposalonInternalAuditingReportfor2019;ProposalonInternalAuditingPlanfor2020;
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
SpecialExplanationontheDepositandUsageofRaisedFundfor2019;ProposalonWorkingReportoftheAuditCommitteeoftheBoardin2019.
(2)The2
nd
MeetingoftheAuditCommitteeofthe9
th
BoardofDirectorsfor2020On28April2020,itwasheldbytelecommunicationmeetingatwhichthefollowingproposalswerereviewedandapprovedunanimously:
ProposalonInternalAuditingReportfortheFirstQuarterof2020;ProposalontheDepositandUsageofRaisedFundfortheFirstQuarterof2020.
(3)The1
st
MeetingoftheAuditCommitteeofthe10
th
BoardofDirectorsfor2020On22May2020,itwasheldbytelecommunicationmeetingatwhichtheProposalonElectingtheConveneroftheAuditCommitteeofthe10
th
BoardofDirectorsandDeterminingtheContactPersonoftheWorkingGroupwasreviewedandapprovedunanimously.
(4)The2
nd
MeetingoftheAuditCommitteeofthe10
th
BoardofDirectorsfor2020On27August2020,itwasheldatConferenceRoom25A,ChinaMerchantsPortPlaza,ShekouIndustry3
rd
Road,Shenzhenonsite,atwhichthefollowingproposalswerereviewedandapprovedunanimously:
ProposalonInterimFinancialReportfor2020;ProposalonInternalAuditingReportfortheSecondQuarterof2020;ProposalonInspectionReportfortheDepositandUsageofRaisedFundfortheFirstHalfof2020.
(5)The3
rd
MeetingoftheAuditCommitteeofthe10
th
BoardofDirectorsfor2020On29October2020,itwasheldbytelecommunicationmeetingatwhichthefollowingproposalswerereviewedandapprovedunanimously：
ProposalonInternalAuditingReportfortheThirdQuarterof2020;ProposalonInspectionReportfortheDepositandUsageofRaisedFundfortheThirdQuarterof2020.
(6)The4
th
MeetingoftheAuditCommitteeofthe10
th
BoardofDirectorsfor2020On30December2020,itheldatConferenceRoom25B,ChinaMerchantsPortPlaza,ShekouIndustry3
rdRoad,Shenzhenintheformofon-sitecombiningwithnetwork,atwhichtheAuditReportontheCompany’sFinanceandInternalControlbyDeloitteToucheTohmatsuCertified
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PublicAccountantsLLPfor2020wasdebriefedbytheCommitteemembers.
2.PerformanceofDutiestotheAuditWorkofFinancialStatementsoftheCompanyInaccordancewithrelevantrequirementsofCSRCandShenzhenStockExchange,thespecificworkingrulesandprocedurefortheAuditCommittee,duringthereportingperiod,theAuditCommitteeoftheBoardoftheCompanyoversawtheauditworkofFinancialStatementsoftheCompanyfor2019withduediligence,detailsofwhichareasfollows:
(1)Beforetheauditorsstartedtheirwork,theAuditCommitteediscussedwiththeprincipalauditoroftheaccountingfirmanddetermined,interalia,thetimingschedulefortheauditingworkofthefinancialstatementsfortheyear.
(2)TheAuditCommitteeexpresseditsauditopinionstwotimesonthefinancialstatementsoftheCompanyfor2019.DuringtheReportingPeriod,theAuditCommitteeexpresseditsauditopinionstwotimesonthefinancialstatementsoftheCompanyfor2019inaccordancewithrelevantrequirementsfromCSRC.TheAuditCommitteereviewedtheFinancialStatementspreparedbytheCompanyandissuedthefollowingopinionsbeforetheAuditorsstartedtheirwork:theCompanywasinfullcompliancewithrelevantlaws,regulationsandtheArticlesofAssociationoftheCompany,theunitsanditemsoftheCompany'sfinancialstatementstobeconsolidatedwerecomplete,andtheconsolidationbasisthereofwasaccurateandtheinformationincludedintheFinancialStatementssubmittedbytheCompanywasobjective,comprehensiveandtrue.TheCompany'saccountingpolicieswereproperlyadoptedandtheaccountingestimatesmadewerereasonable.Nosignificantmistakeoromissionhasbeenidentifiedsofar.Duetothetime-lagbetweenthisreviewofFinancialStatementsandthedatesoftheAuditors'Report,wesuggesttheFinanceDepartmenttofocusonanddealwithsubsequenteventsproperlyinaccordancewiththeNewEnterprisesAccountingStandardstoensurethefairness,truthfulnessandcompletenessoftheFinancialStatements.AftertheAuditorsissuedtheirpreliminaryauditopinions,theAuditCommitteereviewedtheFinancialStatementsagainandissuedthefollowingopinions:theCompanypreparedtheFinancialStatementinfullcompliancewiththeNewEnterpriseAccountingStandardsandrelevantprovisionsofthefinancialcontrolsystemoftheCompany.TheproceduresforthepreparationoftheFinancialStatementswerereasonableandproper,givingatrueandfairviewoftheCompany'sassets,liabilities,equityinterestsandoperationresultsasat31December2019.InformationincludedintheFinancialStatementswasobjectiveandcomplete.FinancialStatementsfor2019whichwaspreliminarilyauditedbyDeloitteToucheTohmatsuCertifiedPublicAccountantsLLP
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
maybesubmittedforreviewatthe7
thMeetingofthe9
thBoardofDirectors.
(3)SupervisionovertheAuditingWorkoftheAccountingFirmDuringtheReportingPeriod,theAuditCommitteeissuedtwoletterstoDeloitteToucheTohmatsuCertifiedPublicAccountantsLLPtourgethemtoproducetheirauditrecommendationonthefinancialstatementsandthesummarystatementofadjustingeventsinatimelymannertohelpourfinancialstafffinishthepreparationoffinancialstatementsandrelatednotesfor2019assoonaspossible,soastoensuretheannualauditandinformationdisclosureproceedasscheduled.
(4)OpinionsontheAuditingWorkPerformedbytheAccountantsforthepreviousyearDuringtheauditingperiod,theAuditCommitteeoftheBoardfocusedontheproblemsdiscoveredintheprocessofauditing,urgedauditorstofinishthepreparationoftheirreportwithinaprescribedperiodoftimeandensuredthetruthfulness,accuracyandcompletenessoftheannualreport.TheCertifiedPublicAccountantsissuedastandardunqualifiedauditreporton15April2020.TheAuditCommitteeconsideredthattheCertifiedPublicAccountantsconductedtheauditworkof2019inaccordancewithChina’sIndependentAuditingStandards,theaudittimewassufficient,thedeploymentoftheauditorswasappropriate,andtheirpracticingcapabilitywasexcellent,andthattheauditreportissuedsufficientlyreflectedtheCompany'sfinancialconditionasat31December2019anditsoperationresultsandcashflowsfortheyear2019andtheauditconclusionmadewasinlinewiththeactualsituationoftheCompany.
3.PayingattentiontotheInternalControlandInternalAuditWorkoftheCompanyDuringthereportingperiod,theAuditCommitteemadestandardsandrequirementstotheAuditOffice'sreportsubmitted,fullyunderstoodthesoundestablishmentandimplementationofinternalcontrolsystem,andfocusedonproblemsandsuggestionsprovidedbytheAuditOffice.Inaddition,theAuditCommitteeadvisedontheimprovementfortheworkoftheAuditDepartmentandtheCompanyrelatingtointernalcontrolforthenextyear.(II)PerformanceoftheNomination,RemunerationandEvaluationCommitteeThemembersofthe9
thNomination,RemunerationandEvaluationCommitteeincludeIndependentDirectorYuanYuhui(Convener),DirectorYanShuaiandIndependentDirectorSuQiyun.Thememberofthe10
th
Nomination,RemunerationandEvaluationCommitteeincludeIndependentDirectorGaoPing(Convener),DirectorYanShuaiandIndependentDirectorWangZhenmin.DuringtheReportingPeriod,membersoftheNomination,RemunerationandEvaluation
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
Committeeearnestlyperformedtheirduties,investigatedtheequityincentiveplanandexaminedtheremunerationofdirectors,supervisorsandseniorexecutivesintermoftherequirementsandstipulationsofCSRC,ArticlesofAssociation,WorkingRulesoftheNomination,RemunerationandEvaluationCommittee,andresponsibilitiesandobligationsempoweredbytheBoardofDirectors.DuringtheReportingPeriod,theNomination,RemunerationandEvaluationCommitteeundertheBoardofDirectorsheldatotaloffourmeetings,detailsofwhichareasfollows:
1.On14April2020,the1
stMeetingoftheNomination,RemunerationandEvaluationCommitteeofthe9
th
BoardofDirectorsfor2020washeldatConferenceRoom25A,ChinaMerchantsPortPlaza,ShekouIndustry3
rd
Road,Shenzhenintheformofon-sitecombiningwithnetwork,atwhichthefollowingproposalswerereviewedandapprovedunanimously:
ProposalonWorkingReportoftheNomination,RemunerationandEvaluationCommitteeoftheBoardfor2019;ProposalonReportontheRemunerationoftheDirectors,SupervisorsandSeniorManagementStafffor2019;ProposalonInspectingtheCandidatesforDirectors.
2.On22May2020,the1
st
MeetingoftheNomination,RemunerationandEvaluationCommitteeofthe10
th
BoardofDirectorsfor2020washeldbytelecommunicationmeetingatwhichthefollowingproposalswerereviewedandapprovedunanimously：
ProposalonElectingtheConveneroftheNomination,RemunerationandEvaluationCommitteeofthe10
th
BoardofDirectorsandDeterminingtheGroupLeader;ProposalonAppointmentofSeniorManagement.
3.On27August2020,the2
nd
MeetingoftheNomination,RemunerationandEvaluationCommitteeofthe10
thBoardofDirectorsfor2020washeldatConferenceRoom25A,ChinaMerchantsPortPlaza,ShekouIndustry3
rd
Road,Shenzhenintheformofon-sitecombiningwithnetwork,atwhichtheProposalonAppointmentofGeneralCounselwasreviewedandapprovedunanimously.
4.On29October2020,the3
rdMeetingoftheNomination,RemunerationandEvaluationCommitteeofthe10
thBoardofDirectorsfor2020washeldbytelecommunicationmeetingatwhichtheProposalonAppointmentofViceGMwasreviewedandapprovedunanimously：
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
(III)PerformanceoftheStrategyCommitteeThemembersofStrategyCommitteeofthe9
th
BoardofDirectorsincludeChairmanoftheBoardDengRenjie(Convener),ViceChairmanoftheBoardBaiJingtao,directorSongDexing,independentdirectorYuanYuhui,andindependentdirectorLiChangqing.ThemembersofStrategyCommitteeofthe10
th
BoardofDirectorsincludeChairmanoftheBoardDengRenjie(Convener),ViceChairmanoftheBoardBaiJingtao,DirectorYanShuai,DirectorSongDexing,DirectorZhangYi,IndependentDirectorGaoPing,andIndependentDirectorLiQi.DuringtheReportingPeriod,membersoftheStrategyCommitteeinlinewiththerequirementsofCSRC,ArticleofAssociation,andthestipulationofWorkingRulesoftheStrategyCommitteeearnestlyperformedtheirduties,conductedresearchandadvisedontheinvestmentplansandassetsoperationprojectsrelatedtothemediumtolongtermdevelopmentstrategyoftheCompany.DuringtheReportingPeriod,theStrategyCommitteeundertheBoardofDirectorsheldatotaloftwomeetings,detailsofwhichareasfollows:
1.On14April2020,the1
st
MeetingoftheStrategyCommitteeofthe9
th
BoardofDirectorsfor2020washeldatConferenceRoom25A,ChinaMerchantsPortPlaza,ShekouIndustry3
rdRoad,Shenzhenintheformofon-sitecombiningwithnetwork,atwhichthefollowingproposalswerereviewedandapprovedunanimously：
ProposalonWorkingReportoftheStrategyCommitteeoftheBoardin2019;ProposalonFive-YearStrategicPlanoftheCompanyfrom2020to2024.
2.On22May2020,the1
st
MeetingoftheStrategyCommitteeofthe10
th
BoardofDirectorsfor2020washeldbytelecommunicationmeetingatwhichtheProposalonElectingtheConveneroftheStrategyCommitteeofthe10
thBoardofDirectorsandDeterminingtheLeaderoftheInvestmentEvaluationGroupwasreviewedandapprovedunanimously.VIIPerformanceofDutybytheSupervisoryCommitteeIndicatebytickmarkwhethertheSupervisoryCommitteefoundanyrisktotheCompanyduringitssupervisionintheReportingPeriod.
□Yes√No
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
TheSupervisoryCommitteeraisednoobjectionsintheReportingPeriod.VIIIAppraisalofandIncentiveforSeniorManagementTheCompanyhasamatureassessmentmechanismandsystemcoveringallseniormanagementpersonnel.Theannualcomprehensiveassessmentcombinesqualitativeandquantitativemethodswiththedimensionsincludingperformance,competence,self-discipline,etc.Theassessmentresultsofseniormanagementserveasanimportantbasisforappointmentandmotivation.TheCompanyadjustsanddeterminesthepostsalaryofseniormanagersbasedonthefactorsincludingoperationstatus,positionservedandassessmentresults,anddeterminestheperformancebonusofmanagersthroughthefactorsincludingannualcomprehensiveabilityassessment,annualkeyperformanceindicatorsappraisalandthree-yearstrategicappraisalresults.TheCompanystrivestobe"superiortothemarketaverageandpeers"regardingastheassessmentanddistributionofperformancebonusesforseniorexecutives.Seniorexecutivesareexpectedtocomparewiththemselveschronologicallyandwiththeirpeershorizontally.Short-termKPIassessmentandlong-termstrategyassessmentcomplementeachother.Thecomprehensiveassessmentresultsofcorporateperformancearelinkedwiththeperformancebonusesofseniorexecutivessoastogivefullplaytotheincentiveandguidingeffectsofremuneration.Accordingly,seniorexecutivespayattentiontotheshort-termperformanceinthecurrentperiodoryearandthemid-andlong-termdevelopmentoftheCompany.In2020,theCompanyintroducedtheemployeeincentiveschemeanddevelopedamechanismforthesharingofprofitsandriskstofullymobilizetheenthusiasmofseniorexecutives.IXInternalControl
1.MaterialInternalControlWeaknessesIdentifiedfortheReportingPeriod
□Yes√No
2.InternalControlSelf-EvaluationReport
| Disclosuredateoftheinternalcontrolself-evaluationreport | 31March2021 |
| Indextothedisclosedinternalcontrolself-evaluationreport | Fordetails,seewww.cninfo.com.cn |
| Evaluatedentities’combinedassetsas%ofconsolidatedtotalassets | 97.60% |
| Evaluatedentities’combinedoperatingrevenueas%ofconsolidatedoperatingrevenue | 98.70% |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Identificationstandardsforinternalcontrolweaknesses | ||||
| Type | Weaknessesininternalcontroloverfinancialreporting | Weaknessesininternalcontrolnotrelatedtofinancialreporting | ||
| Naturestandard | Ifadefectordefectgroupgiverisetothefollowingeventswhichcannotbepreventedorfoundandmaderectification,thedefectordefectgrouparerecognizedassignificantdefects:(1)Malpracticesofdirectors,supervisorsandseniormanagement:(2)TheCompanymakecorrectiontothefinancialreportissued;(3)CertifiedPublicAccountantfindthatthereisasignificanterrorinthefinancialreport,however,theinternalcontroldidnotdiscoveritwhenconductinginternalcontrol;(4)TheAuditCommitteeundertheBoardandInternalAuditService'ssupervisiontotheinternalcontrolisinvalid. | Greatdefect | Significantdefect | Commondefect |
| Developmentdirectionsubstantiallydeviatesfromthestrategicgoals,investmentdirection,andbusinessstructure,commercialmodeled.whichcompletelyunabletosupporttherealizationofstrategicgoals | Developmentdirectionpartlydeviatesfromthestrategicgoals,investmentdirection,andbusinessstructure,commercialmodeled.whichunabletosupporttherealizationofstrategicgoalsatalargerextent | Developmentdirectionslightlydeviatesfromthestrategicgoals,investmentdirection,andbusinessstructure,commercialmodeled.whichcompletelycan'tfullysupporttherealizationofstrategicgoals | ||
| Strategyimplementationisblocked,almostallindicatorsofstrategyimplementationcannotcompletedasplanned | Strategyimplementationisblocked,mostofindicatorsofstrategyimplementationcannotcompletedasplanned | Strategyimplementationisblocked,partofindicatorsofstrategyimplementationcannotcompletedasplanned | ||
| Leadtobreakoffofcommonbusiness/serviceorittakeshalfyearorabovetorecoverthebreakoffofcommonbusiness/service | Leadtobreakoffofcommonbusiness/serviceorittakesthreemonthsorhalfyearbelowtorecoverthebreakoffofcommonbusiness/service | Somedailybusinessisinfluenced,leadtobreakoffofcommonbusiness/serviceorittakesthreemonthsbelowtorecoverthebreakoffofcommonbusiness/service | ||
| Badlydamagetheworkingenthusiasmofalltheemployees,willgiverisetolargescalegroupeventsorheavydamagetoenterprisescultureandenterprisescohesion | Inalargeextent,damagetheworkingenthusiasmofalltheemployees,reduceworkefficiency,havegreatlyadverseeffecttoenterprisescultureandenterprisescohesion | damagetheworkingenthusiasmofalltheemployees,reduceworkefficiency,havesomeadverseeffecttoenterprisescultureandenterprisescohesion | ||
| Theemployee'sabilityandprofessionalskillsuniversallycannotmeettheenterprisedevelopmentneedsbyalargemargin | Theemployee'sabilityandprofessionalskillsinsomesignificantfieldscannotmeettheenterprisedevelopmentneeds | Theemployee'sabilityandprofessionalskillsinsomefieldscannotmeettheenterprisedevelopment | ||
| Negativenewsspreadinthefieldoftheentirebusiness(includingextendingtoindustrychain),orwaspaidattentionbythenationalmediaorpublicmedia,therecoveryofreputationwilltakemorethansixmonths | Negativenewsspreadinthefieldoftheentirebusiness,orwaspaidattentionorreportedbythelocalmediatherecoveryofreputationwilltakethreetosixmonths | Negativenewsspreadinthefieldoftheentirebusiness,havesmalldamagetothereputationoftheenterprise,therecoveryofreputationwilltakethreemonthsbelow | ||
| Theenterprise'sinternalconfidentialinformation | Theenterprise'sinternalconfidentialinformation | Theenterprise'sinternalconfidentialinformation | ||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| leakagewhichbadlyaffecttheenterprise'scompetitivecapacityinthemarket,oraffectthecompetitivecapacityinmanagement | leakagewhichaffecttheenterprise'scompetitivecapacityinthemarket,oraffectthecompetitivecapacityinmanagementinalargeextent | leakagewhichaffecttheenterprise'scompetitivecapacityinthemarket,oraffectthecompetitivecapacityinmanagementinageneralextent | ||
| Quantitativestandard | ThejudgingstandardwasthenetprofitsattributabletotheparentCompany'sshareholdersintheconsolidatedfinancialstatementsauditedinlastyear.Misstatementamount≥5%aboveofjudgingstandardwasgreatdefect;5%judgingstandard＞1%misstatementamountwassignificantdefect;misstatementamount＜1%belowofjudgingstandardwasgeneralstandard. | ThejudgingstandardwasthenetprofitsattributabletotheparentCompany'sshareholdersintheconsolidatedfinancialstatementsauditedinlastyear. | ||
| Greatdefect | Significantdefect | Commondefect | ||
| Haveasignificantadverseimpactontheassetturnoverability,whichleadtototalassetturnoverratelowed20%above(Including20％） | Haveagreateradverseimpactontheassetturnoverability,whichleadtototalassetturnoverratelowed10%to20%(Including10%） | Haveanadverseimpactontheassetturnoverability,whichleadtototalassetturnoverratelowed10%below | ||
| Hadsignificantadverseimpacttotheannualoperationprofitsorcausedecreaseofannualoperationprofitswhenat5%(including5%)aboveofjudgingstandard | Hadlargeradverseimpacttotheannualoperationprofitsorcausedecreaseofannualoperationprofitswhenat1%(including1%)to5%judgingstandard | Hadadverseimpacttotheannualoperationprofitsorcausedecreaseofannualoperationprofitswhenat1%belowofjudgingstandard | ||
| Hadsignificantadverseimpacttodecreaseofinflowoftotalcashfloworincreaseofoutflowtotalcashflowwhenat10%(including10%)aboveofjudgingstandard | Hadlargeradverseimpacttodecreaseofinflowoftotalcashfloworincreaseofoutflowtotalcashflowwhenat5%(including5%)to10%aboveofjudgingstandard | Hadadverseimpacttodecreaseofinflowoftotalcashfloworincreaseofoutflowtotalcashflowwhenat5%belowofjudgingstandard | ||
| Greatinvestmentmistakeincurredwhichcausedirecteconomylosseswhenat5%(including5%)aboveofjudgingstandardorthereturnoninvestmentmorethan40%lowerthanexpected | Largerinvestmentmistakeincurredwhichcausedirecteconomylosseswhenat1%(including1%)to5%ofjudgingstandardorthereturnoninvestmentlessthan30%(including30%to40%)lowerthanexpected | Greatinvestmentmistakeincurredwhichcausedirecteconomylosseswhenat1%belowofjudgingstandardorthereturnoninvestmentlessthan30%lowerthanexpected | ||
| 10deathorabove,or50peopleseriousinjury,ordirecteconomylosseswhenat5%(including5%)aboveofjudgingstandard | ||||
| lessthan3deathsorabove,orlessthan10peopleseriousinjury,ordirecteconomylosseswhenat1%belowofjudgingstandard | ||
| Assetintegritycannotbeensured,whenassetslossesat5%(including5%)aboveofjudgingstandard | Assetintegritycannotbeensured,whenassetslossesat1%(including1%)to5%ofjudgingstandard | Assetintegritycannotbeensured,whenassetslossesat1%belowofjudgingstandard |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
| Alargenumberofgreatcommercialdisputes,civillawsuitsandnegativeinfluencescan'teliminateinashortperiodoftime,maypaycompensationat5%(including5%)aboveofjudgingstandard | Severalcommercialdisputes,civillawsuits,andhadobviouslyinfluenceinacertainareaandperiod,maypaycompensationat1%(including1%)to5%ofjudgingstandard | Irreconcilablecommercialdisputes,civillawsuitshappenedsometimes,causeacertaininfluencesinlocal,maypaycompensationat1%belowofjudgingstandard | ||
| Aseriousviolationoflawsandregulations,investigatedbygovernmentdepartmentandlegaldepartment,causeprosecutionandclassaction,maypaycompensationat2%(including2%)aboveofjudgingstandard | Aseriousviolationoflawsandregulations,investigatedbygovernmentdepartmentandlegaldepartment,maypaycompensationat0.5%(including0.5%)to2%ofjudgingstandard | Violationoflawsandregulations,investigatedbygovernmentdepartmentandlegaldepartment,maypaycompensationat0.5%belowofjudgingstandard | ||
| Numberofmaterialweaknessesininternalcontroloverfinancialreporting | 0 | |||
| Numberofmaterialweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |||
| Numberofseriousweaknessesininternalcontroloverfinancialreporting | 0 | |||
| Numberofseriousweaknessesininternalcontrolnotrelatedtofinancialreporting | 0 | |||
Note:Thepercentagesofevaluatedentities’combinedassetsandoperatingrevenuetoconsolidatedtotalassetsandoperatingrevenuehavebeendeductedthecorrespondingfinancialdataofthemergedcompany.XIndependentAuditor’sReportonInternalControl
| Opinionparagraphintheindependentauditor’sreportoninternalcontrol | |
| WebelievethatChinaMerchantsPortGroupCo.,Ltd.hasmaintainedeffectiveinternalcontroloverfinancialreportinginallmaterialrespectsasof31December2020aspertheBasicRulesforEnterpriseInternalControlandrelevantregulations. | |
| Independentauditor’sreportoninternalcontroldisclosedornot | Disclosed |
| Disclosuredate | 31March2021 |
| Indextosuchreportdisclosed | Fordetails,seewww.cninfo.com.cn |
| Typeoftheauditor’sopinion | Unmodifiedunqualifiedopinion |
| Materialweaknessesininternalcontrolnotrelatedtofinancialreporting | None |
Indicatebytickmarkwhetheranymodifiedopinionisexpressedintheindependentauditor’sreportontheCompany’sinternalcontrol.
□Yes√NoIndicatebytickmarkwhethertheindependentauditor’sreportontheCompany’sinternalcontrolis
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
consistentwiththeinternalcontrolself-evaluationreportissuedbytheCompany’sBoard.
√Yes□No
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartXICorporateBondsDoestheCompanyhaveanycorporatebondspubliclyofferedonthestockexchange,whichwereoutstandingbeforethedateofthisReport’sapprovalorwereduebutcouldnotberedeemedinfull?YesI.BasicInformationoftheCorporateBonds
| Name | Abbr. | Code | Releasedate | Maturitydate | Bondsbalance(RMB’0,000) | Interestrate | Wayofredemption |
| 2020PublicOfferingofCorporateBondsofChinaMerchantsPortGroupCo.,Ltd.(forqualifiedinvestors)(PhaseI) | 20CMPort01 | 149170 | 7July2020 | 8July2023 | 200,000 | 3.36% | Simpleinterestisadoptedandcalculatedbyyear.Nocompoundinterestiscalculated.Interestsarepaidonceeveryyearandprincipalspaidinlumpsumatmaturity.Inthelastinstallment,theinterestsarepaidtogetherwithprincipalrepayment. |
| ListedortransferredtradingplaceoftheCompanybonds | ListontheSZSE. | ||||||
| Appropriatearrangementoftheinvestors | TheCompany’sbondsarepubliclyissuedtoeligibleinvestorswhocomplywiththeMeasuresforIssuanceandTradingofCorporateBondsandhaveopenedaneligibleA-sharesecuritiesaccountwithShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.(CSDC). | ||||||
| InterestpaymentduringtheReportingPeriod | DuringtheReportingPeriod,“20CMPort01”didnotenterthepaymentperiod. | ||||||
| ExecutionoftherelevantregulationsduringtheReportingPeriodsuchastheaffiliatedoptionclauseoftheissuersorinvestors,specialclausessuchastheexchangeableregulationsoftheCompanybonds(ifapplicable) | Notapplicable | ||||||
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
II.ListoftheBondTrusteeandtheRatingOrganization
| Bondtrustee: | ||||||||
| Name | CITICSecuritiesCo.,Ltd. | Officeaddress | 18FCITICSecuritiesTower,No.8Zhongxin3rdRoad,FutianDistrict,Shenzhen | Contactperson | ChenTianyaandFengYuan | Contactnumber | 0755-23835062 | |
| RatingorganizationexecutedthetrackingratingofthecorporatebondsoftheReportingPeriod: | ||||||||
| Name | ChinaChengxinInternationalCreditRatingCo.,Ltd. | Officeaddress | 60101,Building1,No.2Nanzhuganhutong,DongchengDistrict,Beijing | |||||
| Alternationreasons,executionprocessandinfluencesontheinvestors’interestsetc.iftherewasalternationofthebondtrusteesandthecreditratingagenciesengagedbytheCompanyduringtheReportingPeriod(ifapplicable) | Notapplicable | |||||||
III.ListoftheUsageoftheRaisedFundsoftheCorporateBonds
| ListoftheusageoftheraisedfundsandtheexecutionprocessoftheCompanybonds | TheCompanyhasusedtheraisedfundsstrictlyinaccordancewiththetermsintheprospectusforcurrentbonds,relatedprovisionsandrequirementsintheMeasuresforIssuanceandTradingofCorporateBondsandtheBondsListingRulesoftheShenzhenStockExchange.Ithasnotengagedinanyviolationsinrespectoftheuseandmanagementoftheraisedfunds. |
| Endingbalance(RMB’0,000) | 0 |
| Operatingsituationoftheraisedfundsspecialaccount | TheCompanydepositsraisedfundsinadedicatedaccountandstrictlyperformsinternalapprovalproceduresfortheuseofraisedfundstoensuredesignateduseofdesignatedmoney. |
| Whethertheusageoftheraisedfundsmetwiththeusage,usingplanandotheragreementscommittedontheprospectus | Yes |
IV.RatingSituationoftheCorporateBondsInformationOn24June2020,ChinaChengxinInternationalCreditRatingCo.,Ltd.(CCXI)issuedacreditratingnotice(XPWHZ[2019]No.G564).CCXIgrantedthecorporatecreditratingofAAAtotheCompanywitharatingoutlookofStable,andthecreditratingofAAAtothe“2020PublicOfferingofCorporateBondsofChinaMerchantsPortGroupCo.,Ltd.(forqualifiedinvestors)(PhaseI)”.DuringtheReportingPeriod,therewasnoratingdifferenceinthecorporatecreditratingsofother
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
bondsanddebtfinancinginstrumentsissuedbytheCompanyinChina.V.Credit-addingMechanism,RepaymentPlanandOtherRepaymentGuaranteeMeasuresoftheCorporateBonds(I)Changesinthecreditenhancementmechanism,debtrepaymentplansandotherdebtrepaymentguaranteemeasuresDuringtheReportingPeriod,therewasnosignificantchangeinthecreditmechanism,debtrepaymentplansandotherdebtrepaymentguaranteemeasuresfortheCompany’sbonds.(II)RegardingthecreditenhancementmechanismDuringtheReportingPeriod,theCompany’sbondshadnosuretybond,mortgageorpledgeandnoothermethodofcreditenhancement.(III)DebtrepaymentplansorotherdebtrepaymentguaranteemeasurestakenTofullyandeffectivelysafeguardtherightsandinterestsofbondholders,theCompanyhasdevelopedaseriesofworkplansforthetimelyandfullrepaymentofitsbonds,includingdesignatingdedicateddepartmentsandpersonnel,arrangingfundsfordebtrepayment,developingandstrictlyexecutingfundmanagementplans,properlyorganizingandcoordinating,fullyexertingtheroleofthebondtrustee,andstrictlyperformingtheinformationdisclosureobligation.Theseplanshaveformedasetofguaranteemeasuresforthesafepaymentofinterestsandrepaymentforthebonds.(IV)DedicateddebtrepaymentaccountTheCompanyhassetupadedicatedcorporatebondaccountforitsbonds.Ithassignedatripartitefundregulationagreementwiththetrusteeandthefundcustodianbanktoguaranteethefullandtimelypaymentofinterestsandrepaymentofprincipalsforitsbonds.VI.ConveneSituationoftheBondsHoldersMeetingduringtheReportingPeriodDuringtheReportingPeriod,nobondsholdersmeetingwasconvened.VII.ListoftheDutyExecutionoftheBondsTrusteeduringtheReportingPeriodThebondtrusteeof“20CMPort01”isCITICSecurities.AsattheissuedateofthisReportsince
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
theissueof“20CMPort01”,thetrusteeCITICSecuritieshadperformedcontinuoustrackingandsupervisionontheCompany’screditstatus,theuseofthefundsraisedundertheCompany’sbonds,andtheimplementationofthedebtrepaymentguaranteemeasuresstrictlyinaccordancewithrelevantlaws,regulationsandtheprovisionsoftheBondTrusteeshipAgreement.IthadremindedtheCompanytofulfillitsobligationsspecifiedintheprospectus,proactivelyperformeditsdutiesasthebondtrustee,andsafeguardedthelegitimaterightsandinterestsofthebondholders.AsattheissuedateofthisReport,therehadbeennoconflictofinterestsinthetrustee’sperformanceofduties.Thetrusteehadyetissuedthereportonthetrusteeshipaffairs.VIII.TheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
| Item | 2020 | 2019 | Increase/decrease |
| EBITDA | 1,176,301.96 | 1,576,181.91 | -25.37% |
| Currentratio | 82.99% | 68.44% | 14.55% |
| Debt/assetratio | 37.30% | 39.38% | -2.08% |
| Quickratio | 82.27% | 68.00% | 14.27% |
| Debt/EBITDAratio | 18.71% | 25.54% | -6.83% |
| Interestcover(times) | 3.38 | 5.09 | -33.60% |
| Cash-to-interestcover(times) | 4.14 | 3.95 | 4.81% |
| EBITDA-to-interestcover(times) | 5.84 | 7.42 | -21.29% |
| Debtrepaymentratio(%) | 100.00% | 100.00% | - |
| Interestpaymentratio(%) | 100.00% | 100.00% | - |
MainreasonoftheaboveaccountingdataandthefinancialindicatorswiththeYoYchangeexceeded30%
√Applicable□NotapplicableTheinterestcover(times)declined33.60%comparedwithlastyearmainlyduetoadecreaseintotalprofit.IX.OverdueDebtsoftheCompany
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.X.ListoftheInterestPaymentofOtherBondsandDebtFinancingInstrumentsduringtheReportingPeriodDuringtheReportingPeriod,theCompanypaidinterestsinduecourseforotherbondsanddebtfinancinginstrumentswithoutanydelayorfailureinthepaymentofinterestsandrepaymentof
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
principals.XI.ListoftheAcquiredBankCreditLines,UsageandtheRepaymentoftheBankLoansTheCompanyhadmaintainedgoodcreditrecordswithdifferentbanksandotherfinancialinstitutions.AsattheendofDecember2020,theCompanyhadbeengrantedacreditofRMB56.2billionbybanks,ofwhichRMB15.9billionhadbeenused.DuringtheReportingPeriod,theCompanyhadusedthefundsstrictlyaccordingtothebanks’loanrequirementsandfullyrepaidbankloansinduecourse.XII.ListoftheExecutionoftheAgreementsortheCommitmentsRelatedtotheCompanyBondsRaisingSpecificationduringtheReportingPeriodTheCompanyhadstrictlycarriedoutthecontentspecifiedintheprospectusofitsbonds,withnoincidentofharmingtherightsandinterestsofthebondinvestors.XIII.SignificantEventsOccurringduringtheReportingPeriodRefertoPartVSignificantEventsofthisReport.XIV.WhethertherewasGuarantoroftheCorporateBonds
□Yes√No
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartXIIFinancialStatements(Seeattached)IIndependentAuditor’sReport
| Typeoftheindependentauditor’sopinion | Standardandunqualifiedauditor'sreport |
| Dateofsigningthisreport | 30March2021 |
| Nameoftheindependentauditor | DeloitteToucheTohmatsuCertifiedPublicAccountantsLLP |
| ReferencenumberofAuditReport | DeShiBao(Shen)Zi(21)No.P02174 |
| Nameofthecertifiedpublicaccountants | LiWeihua,ZhangMin |
ChinaMerchantsPortGroupCo.,Ltd.AnnualReport2020
PartXIIIDocumentsAvailableforReference
I.FinancialStatementscarryingthesignaturesandstampsoftheCompanyPrincipal,theChiefFinancialOfficerandthepersoninchargeofaccountingfirm;II.OriginalcopyoftheAuditor'sReportstampedbytheaccountingfirmandsignedandstampedbyregisteredaccountants;III.Originalcopiesofalldocumentsandtheannouncementsthereofdisclosedinthereportingperiodon“SecuritiesTimes”and“TaKungPao”.
ForandonbehalfoftheBoard
BaiJingtaoLegalrepresentativeofChinaMerchantsPortGroupCo.,Ltd.
Dated31March2021
CHINAMERCHANTSPORTGROUPCO.,LTD.FINANCIALSTATEMENTSANDAUDITOR'SREPORTFORTHEYEARENDED31DECEMBER2020
CHINAMERCHANTSPORTGROUPCO.,LTD.FINANCIALSTATEMENTSANDAUDITOR'SREPORTFORTHEYEARENDED31DECEMBER2020
CONTENTSPagesAUDITOR'SREPORT1-6THECONSOLIDATEDANDCOMPANY'SBALANCESHEETS7-10THECONSOLIDATEDANDCOMPANY'SINCOMESTATEMENTS11-12THECONSOLIDATEDANDCOMPANY'SCASHFLOWSTATEMENTS13-14THECONSOLIDATEDANDCOMPANY'SSTATEMENTSOFCHANGESINSHAREHOLDERS'EQUITY15-18NOTESTOITEMSOFTHEFINANCIALSTATEMENTS19-176
-1-
AUDITOR'SREPORT
DeShiBao(Shen)Zi(21)No.P02174
(Page1of6)ToalltheshareholdersofChinaMerchantsPortGroupCo.,Ltd.,I.AuditOpinionWehaveauditedtheaccompanyingfinancialstatementsofChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoas"theCompany"),whichcomprisetheconsolidatedandcompanybalancesheetsasat31December2020,andtheconsolidatedandcompany'sincomestatements,theconsolidatedandcompany'scashflowstatementsandtheconsolidatedandcompany'sstatementsofchangesinshareholders'equityfortheyearthenended,andthenotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementsoftheCompanypresentfairly,inallmaterialrespects,theconsolidatedandcompany'sfinancialpositionasof31December2020,theconsolidatedandcompany'sresultsofoperationsandcashflowsfortheyearthenendedinaccordancewiththeAccountingStandardsforBusinessEnterprises.II.BasisfortheOpinionWeconductedourauditinaccordancewiththeAuditingStandardsfortheChineseCertifiedPublicAccountants.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewiththeAuditingStandardsfortheChineseCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththestandards.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentyear.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,andwedonotprovideaseparateopiniononthesematters.Wedeterminethefollowingsarekeyauditmattersthatneedtobeaddressedinourreport.
1.Subsequentmeasurementoflong-termequityinvestmentinassociatesandjointventuresAsdisclosedinNotes(V)13totheconsolidatedfinancialstatements,onDecember31,2020,thebookvalueofChinaMerchantsPortGroup’slong-termequityinvestmentinassociatesamountedtoRMB57,371,179,717.36,accountingfor54%ofthetotalshareholder’sequity.In2020,theinvestmentincomefromassociatesrecognizedbytheequitymethodamountstoRMB3,630,921,407.38,accountingfor66%oftheconsolidatednetprofit.SincetheamountofinvestmentincomerecognizedbyChinaMerchantsPortGroupforassociatesthisyearissignificant,anditscorrectnessdependsonthefinancialstatusandoperatingresultsoftheinvestee,wedeterminetheabove-mentionedsubsequentmeasurementofthelong-termequityinvestmentinassociatesasamergerkeyauditmattersoffinancialstatements.
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AUDITOR'SREPORT-continued
DeShiBao(Shen)Zi(21)No.P02174
(Page2of6)III.KeyAuditMatters-continued
1.Subsequentmeasurementoflong-termequityinvestmentinassociatesandjointventures-
continued
Principalauditproceduresweperformedforkeyauditmattersareasfollows:
(1)Understoodthecertifiedpublicaccountantsofmajorassociates/jointventuresandevaluated
theirindependenceandprofessionalcompetence;
(2)Identifiedandassessedtheriskofmaterialmisstatementinthefinancialstatementsofthemajor
associates/jointventuresfromtheperspectiveofauditingtheconsolidatedfinancialstatementsoftheCompanybyreadingthefinancialstatementsofthemajorassociates/jointventuresanddiscussingwiththemanagementthefinancialperformanceofthemajorassociates/jointventuresandthesignificantjudgmentsandestimatesmadeinthepreparationofthefinancialstatements;
(3)Discussedwiththecomponentcertifiedpublicaccountantsofthemajorassociates/joint
venturestheirassessmentofthecomponentauditrisk,theidentificationofkeyauditareasandtheimplementationofthecorrespondingauditprocedurestoevaluatewhethertheauditofthecomponentcertifiedpublicaccountantswasappropriate;
(4)Evaluatedwhethertheauditevidenceobtainedbythecomponentcertifiedpublicaccountants
wassufficientandappropriatebyreviewingtheauditdocumentsofthecomponentcertifiedpublicaccountantsofthemajorassociates/jointventureswhenwedeemednecessary.
(5)Verifiedwhethertheaccountingpoliciesandaccountingperiodsadoptedbytheassociates/joint
ventureswereconsistentwiththeCompany's.Ifnot,checkedwhetherthefinancialstatementsoftheassociates/jointventureshavebeenadjustedaccordingtotheaccountingpoliciesandaccountingperiodoftheCompany,andrecognizedtheamountofinvestmentincomeunderequitymethodonthatbasis.
2.GoodwillimpairmentAsdisclosedinNotes(V)22totheconsolidatedfinancialstatements,asat31December2020,thegoodwillintheconsolidatedfinancialstatementsoftheCompanywasRMB6,675,939,930.13.ThemanagementoftheCompanyusedthenetamountoffairvaluelesscostsofdisposalorthepresentvalueoftheestimatedfuturecashflowstodeterminetherecoverableamountoftherelevantassetgroupwhentestingthegoodwillforimpairment,ofwhichthefairvalueassessmentisbasedonthemarketapproach,andtheforecastoffuturecashflowsandthecalculationofthepresentvalueincludedkeyassumptions,suchasincomegrowthrate,grossprofitmargin,discountrate,etc.Weidentifiedthegoodwillimpairmentasakeyauditmatteroftheconsolidatedfinancialstatementsduetothesignificantamountofgoodwillandthatthemanagementneedstomakesignificantjudgmentsandestimateswhenconductinggoodwillimpairmenttesting.
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AUDITOR'SREPORT-continued
DeShiBao(Shen)Zi(21)No.P02174
(Page3of6)III.KeyAuditMatters-continued
2.Goodwillimpairment-continuedPrincipalauditproceduresweperformedforkeyauditmattersareasfollows:
(1)Assessedreasonabilityofdivisionofassetgroupandcombinationofassetgroupmanagementmadeby
management;
(2)Referredtoindustrypracticetoassesswhetherthemanagement'sapproachincashflowsforecastisappropriateand
whethertheassumptionsusedarereasonable;
(3)Comparedthedatausedincashflowforecastwithhistoricaldataandbudgetdataapprovedbythemanagement,
andassessedthereasonablenessofthedataused;
(4)Comparedthegrowthrateofthebusinessvolumeintheforecastperiodwiththegrowthrateofthehistorical
businessvolumeandevaluateditsappropriateness.
(5)Understoodthebasisformanagementtodeterminethegrowthrateofthebusinessinthesubsequentforecastperiod
andassesseditsappropriateness;
(6)Assessedtheappropriatenessofthediscountrateadoptedbythemanagementincombinationwithmarketrisk-free
interestrates,riskfactors,etc.;
(7)Usetheworkofinternalevaluationexpertstoevaluatetheappropriatenessofmanagement'sassessmentmethodof
therecoverableamountoftheassetgroup,andevaluatethereasonablenessofthediscountrateusedbythemanagementinpredictingthepresentvalueofthecashflowandthegrowthrateofthesubsequentforecastperiod.
(8)Reviewedwhetherthecalculationofthepresentvalueoffuturecashflowswascorrect.
(9)Reviewedwhetherthemethodusedtoassessthefairvaluelesscostsofdisposalwasappropriate.
(10)Assesstheadequacyandappropriatenessofthedisclosureofthegoodwillimpairmenttest.IV.OtherInformationTheCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedinthe2020annualreport,butdoesnotincludetheconsolidatedfinancialstatementsandourauditor'sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusion.
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AUDITOR'SREPORT-continued
DeShiBao(Shen)Zi(21)No.P02174
(Page4of6)IV.OtherInformation-continuedIncombinationwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheauditworkperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesoftheManagementandThoseChargedwithGovernancefortheFinancialStatementsThemanagementoftheCompanyisresponsibleforthepreparationofthefinancialstatementsthatgiveatrueandfairviewinaccordancewithAccountingStandardsforBusinessEnterprises,andforthedesign,performanceandmaintenanceofsuchinternalcontrolthatisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThesechargedwithgovernanceareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesanauditopinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithAuditingStandardsfortheChineseCertifiedPublicAccountantswillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldexpectedinfluencetheeconomicdecisionstakenbasedonthesefinancialstatementsbyreasonableusers.AspartofanauditinaccordancewithAuditingStandardsfortheChineseCertifiedPublicAccountants,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:
-5-
AUDITOR'SREPORT-continued
DeShiBao(Shen)Zi(21)No.P02174
(Page5of6)VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatements-continued
(1)Identifiedandassessedtherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,
designedandperformedauditproceduresresponsivetothoserisks,andobtainedauditevidencethatwassufficientandappropriatetoformouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudwashigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.
(2)Understoodaudit-relatedinternalcontrolinordertodesignauditproceduresthatwereappropriateinthe
circumstances.
(3)Evaluatedtheappropriatenessofaccountingpoliciesappliedandthereasonablenessofaccountingestimatesand
relateddisclosuresmadebythemanagement.
(4)Concludedontheappropriatenessofthedirectors'applicationofthegoingconcernbasisofaccounting.Basedon
auditevidenceobtained,concludedonwhetherthematerialuncertaintyofeventsorconditionsthatmaycausecastsignificantdoubtontheCompany'sabilitytocontinueasagoingconcernexisted.Ifweconcludedthatamaterialuncertaintyexisted,wewererequiredtodrawattentioninourauditor'sreporttotherelateddisclosuresinthefinancialstatementsortomodifyouropinion,ifsuchdisclosureswereinadequate.Ourconclusionswerebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.
(5)Evaluatedtheoverallpresentation(includingthedisclosures),structureandcontentofthefinancialstatements,and
whetherthefinancialstatementsrepresentedtheunderlyingtransactionsandeventsinamannerthatachievedfairpresentation.
(6)Obtainedsufficientappropriateauditevidenceregardingthefinancialinformationoftheentitiesorbusiness
activitieswithintheCompanytoexpressanopiniononthefinancialstatements.Wewereresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainedsolelyresponsibleforourauditopinion.Wecommunicatedwiththosechargedwithgovernanceoverauditscope,timearrangementandsignificantauditfindings,includinganysignificantdeficienciesofinternalcontrolthatweidentifiedthroughaudit.Wealsoprovidedthosechargedwithgovernancewithastatementthatwehadcompliedwithrelevantethicalrequirementsofindependence,andcommunicatedwiththosechargedwithgovernanceoverallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.
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AUDITOR'SREPORT-continued
DeShiBao(Shen)Zi(21)No.P02174
(Page6of6)VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatements-continuedFromthematterscommunicatedwiththosechargedwithgovernance,wedeterminedthosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentyearandwerethereforethekeyauditmatters.Wedescribedthesemattersinourauditor'sreportunlesslaworregulationprecludedpublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminedthatamattershouldnotbeaddressedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.DeloitteToucheTohmatsuCPALLPChineseCertifiedPublicAccountant
(EngagementPartner)Shanghai,China
LiWeihuaChineseCertifiedPublicAccountant
ZhangMin30March2021Theauditor’sreportandtheaccompanyingfinancialstatementsareEnglishtranslationsoftheChineseauditor’sreportandstatutoryfinancialstatementspreparedunderaccountingprinciplesandpracticesgenerallyacceptedinthePeople’sRepublicofChina.Thesefinancialstatementsarenotintendedtopresentthefinancialpositionandresultsofoperationsandcashflowsinaccordancewithaccountingprinciplesandpracticesgenerallyacceptedinothercountriesandjurisdictions.IncasetheEnglishversiondoesnotconformtotheChineseversion,theChineseversionprevails.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-7-
AT31DECEMBER2020
ConsolidatedBalanceSheet
RMB
| Item | Notes | Closingbalance | Openingbalance |
| CurrentAssets: | |||
| Cashandbankbalances | (V)1 | 11,791,424,734.63 | 7,734,948,210.26 |
| Held-for-tradingfinancialassets | (V)2 | 850,165,448.59 | - |
| Notesreceivable | (V)3 | 3,891,994.84 | 38,192,250.02 |
| Accountsreceivable | (V)4 | 1,372,650,236.16 | 1,356,460,129.90 |
| Receivablesfinancing | (V)5 | 217,449,966.41 | 260,760,537.45 |
| Prepayments | (V)6 | 49,220,850.11 | 55,034,019.81 |
| Otherreceivables | (V)7 | 3,557,195,461.26 | 2,129,378,252.50 |
| Inventories | (V)8 | 211,366,458.88 | 163,980,192.08 |
| Assetsheldforsale | (V)9 | 337,442,757.28 | 188,404,228.34 |
| Non-currentassetsduewithinoneyear | (V)10 | 67,692,473.44 | 808,893,013.06 |
| Othercurrentassets | (V)11 | 433,666,201.42 | 2,298,792,661.70 |
| Totalcurrentassets | 18,892,166,583.02 | 15,034,843,495.12 | |
| Non-currentAssets: | |||
| Long-termreceivables | (V)12 | 3,887,949,993.10 | 1,098,831,799.90 |
| Long-termequityinvestments | (V)13 | 66,231,923,423.45 | 57,916,539,383.26 |
| Investmentsinotherequityinstruments | (V)14 | 181,467,057.74 | 163,561,272.00 |
| Othernon-currentfinancialassets | (V)15 | 910,807,452.56 | 2,385,363,537.39 |
| Investmentproperties | (V)16 | 5,558,755,275.21 | 5,760,262,674.40 |
| Fixedassets | (V)17 | 29,471,583,624.56 | 27,519,962,529.29 |
| Constructioninprogress | (V)18 | 5,381,430,606.18 | 6,334,141,441.88 |
| Right-of-useassets | (V)19 | 9,087,215,717.60 | 9,633,325,390.46 |
| Intangibleassets | (V)20 | 18,766,092,163.81 | 19,693,715,554.10 |
| Developmentexpenditure | (V)21 | 64,237,735.23 | 37,399,092.28 |
| Goodwill | (V)22 | 6,675,939,930.13 | 8,023,659,694.81 |
| Long-termprepaidexpenses | (V)23 | 874,842,472.68 | 711,911,011.67 |
| Deferredtaxassets | (V)24 | 420,731,058.30 | 300,435,502.27 |
| Othernon-currentassets | (V)25 | 2,138,468,683.64 | 2,082,965,467.04 |
| Totalnon-currentassets | 149,651,445,194.19 | 141,662,074,350.75 | |
| TOTALASSETS | 168,543,611,777.21 | 156,696,917,845.87 |
CHINAMERCHANTSPORTGROUPCO.,LTD.
-8-
AT31DECEMBER2020
ConsolidatedBalanceSheet-continued
RMB
| Item | Notes | Closingbalance | Openingbalance |
| Currentliabilities: | |||
| Short-termborrowings | (V)26 | 10,483,775,548.93 | 9,439,099,793.47 |
| Notespayable | (V)27 | 7,081,772.32 | 76,455,949.01 |
| Accountspayable | (V)28 | 599,112,028.98 | 591,112,466.39 |
| Receiptsinadvance | (V)29 | 39,510,127.90 | 28,826,687.37 |
| Contractliabilities | (V)30 | 148,044,541.70 | 85,831,002.52 |
| Employeebenefitspayable | (V)31 | 712,085,622.15 | 634,718,784.64 |
| Taxespayable | (V)32 | 2,368,662,556.37 | 1,898,076,342.74 |
| Otherpayables | (V)33 | 2,456,700,897.60 | 2,223,754,677.96 |
| Non-currentliabilitiesduewithinoneyear | (V)34 | 3,564,465,137.37 | 6,104,339,856.79 |
| Othercurrentliabilities | (V)35 | 2,383,668,985.94 | 885,956,581.63 |
| Totalcurrentliabilities | 22,763,107,219.26 | 21,968,172,142.52 | |
| Non-currentLiabilities: | |||
| Long-termborrowings | (V)36 | 7,406,322,693.80 | 6,313,735,540.33 |
| Bondspayable | (V)37 | 21,090,545,845.56 | 20,930,681,967.19 |
| Including:Preferredshares | - | - | |
| Perpetualbonds | - | - | |
| Leaseliabilities | (V)38 | 1,327,423,748.05 | 1,647,129,968.61 |
| Long-termpayables | (V)39 | 1,228,461,573.69 | 1,935,245,003.21 |
| Long-termemployeebenefitspayable | (V)40 | 507,714,699.46 | 471,482,138.63 |
| Provisions | (V)41 | 100,406,745.66 | 76,242,559.95 |
| Deferredincome | (V)42 | 1,112,887,683.90 | 1,147,752,857.17 |
| Deferredtaxliabilities | (V)24 | 4,347,553,142.73 | 3,961,752,749.17 |
| Othernon-currentliabilities | (V)43 | 2,982,220,894.03 | 3,254,515,306.85 |
| Totalnon-currentliabilities | 40,103,537,026.88 | 39,738,538,091.11 | |
| TOTALLIABILITIES | 62,866,644,246.14 | 61,706,710,233.63 | |
| Shareholders'equity: | |||
| Sharecapital | (V)44 | 1,922,365,124.00 | 1,922,365,124.00 |
| Capitalreserve | (V)45 | 22,805,069,335.49 | 22,296,485,467.35 |
| Othercomprehensiveincome | (V)46 | -826,697,303.06 | -355,944,565.91 |
| Specialreserve | (V)47 | 10,201,178.30 | 12,386,734.70 |
| Surplusreserve | (V)48 | 890,690,322.28 | 630,345,307.43 |
| Unappropriatedprofit | (V)49 | 12,316,177,395.17 | 11,467,166,351.85 |
| Totalshareholders'equityattributabletoshareholdersoftheparent | 37,117,806,052.18 | 35,972,804,419.42 | |
| Minorityinterests | 68,559,161,478.89 | 59,017,403,192.82 | |
| TOTALSHAREHOLDERS'EQUITY | 105,676,967,531.07 | 94,990,207,612.24 | |
| TOTALLIABILITIESANDSHAREHOLDERS'EQUITY | 168,543,611,777.21 | 156,696,917,845.87 |
Theaccompanyingnotesformpartofthefinancialstatements.Thefinancialstatementsonpages7to176weresignedbythefollowing:
BaiJingtaoLuYongxinSunLigan____________________________________________________________
LegalRepresentativeChiefFinancialOfficerHeadofAccountingDepartment
CHINAMERCHANTSPORTGROUPCO.,LTD.
-9-
AT31DECEMBER2020
BalanceSheetoftheCompany
RMB
| Item | Notes | Closingbalance | Openingbalance |
| CurrentAssets: | |||
| Cashandbankbalances | 753,590,556.77 | 690,685,211.42 | |
| Held-for-tradingfinancialassets | 800,000,000.00 | - | |
| Prepayments | 32,236.27 | - | |
| Otherreceivables | (XV)1 | 1,102,712,752.04 | 805,534,763.27 |
| Othercurrentassets | 2,574,148.83 | 1,107,292,458.33 | |
| Totalcurrentassets | 2,658,909,693.91 | 2,603,512,433.02 | |
| Non-currentAssets: | |||
| Long-termreceivables | 8,667,950.38 | 61,004,284.75 | |
| Long-termequityinvestments | (XV)2 | 37,236,798,123.55 | 30,266,376,582.23 |
| Investmentsinotherequityinstruments | 155,610,830.00 | 155,688,635.00 | |
| Othernon-currentfinancialassets | - | - | |
| Fixedassets | 748,147.75 | 672,842.27 | |
| Constructioninprogress | 3,502,416.12 | 5,803,169.37 | |
| Intangibleassets | 56,760,723.98 | 54,692,581.18 | |
| Long-termprepaidexpenses | 1,572,660.89 | - | |
| Deferredtaxassets | 1,846,793.34 | 928,465.21 | |
| Totalnon-currentassets | 37,465,507,646.01 | 30,545,166,560.01 | |
| TOTALASSETS | 40,124,417,339.92 | 33,148,678,993.03 |
CHINAMERCHANTSPORTGROUPCO.,LTD.
-10-
AT31DECEMBER2020
BalanceSheetoftheCompany-continued
RMB
| Item | Notes | Closingbalance | Openingbalance |
| CurrentLiabilities: | |||
| Short-termborrowings | 2,174,486,432.93 | 300,378,812.50 | |
| Employeebenefitspayable | 27,085,844.52 | 6,000,000.00 | |
| Taxespayable | 208,459,425.46 | 209,282,889.78 | |
| Otherpayables | 460,457,238.16 | 628,013,119.77 | |
| Non-currentliabilitiesduewithinoneyear | 33,040,000.00 | 35,832,000.00 | |
| Othercurrentliabilities | 2,224,519,555.57 | 715,766,708.20 | |
| Totalcurrentliabilities | 5,128,048,496.64 | 1,895,273,530.25 | |
| Non-currentLiabilities: | |||
| Bondspayable | 2,000,000,000.00 | - | |
| Deferredtaxliabilities | 43,419,526.51 | 35,164,858.75 | |
| Totalnon-currentliabilities | 2,043,419,526.51 | 35,164,858.75 | |
| TOTALLIABILITIES | 7,171,468,023.15 | 1,930,438,389.00 | |
| SHAREHOLDERS'EQUITY | |||
| Sharecapital | 1,922,365,124.00 | 1,922,365,124.00 | |
| Capitalreserve | 27,591,847,402.73 | 27,576,242,527.73 | |
| Othercomprehensiveincome | 105,536,222.50 | 105,594,576.25 | |
| Surplusreserve | 890,690,322.28 | 630,345,307.43 | |
| Unappropriatedprofit | 2,442,510,245.26 | 983,693,068.62 | |
| TOTALSHAREHOLDERS'EQUITY | 32,952,949,316.77 | 31,218,240,604.03 | |
| TOTALLIABILITIESANDSHAREHOLDERS'EQUITY | 40,124,417,339.92 | 33,148,678,993.03 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-11-
FORTHEYEARENDED31DECEMBER2020
ConsolidatedIncomeStatement
RMB
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| I.Operatingincome | (V)50 | 12,618,529,996.02 | 12,123,829,423.74 |
| Less:Operatingcosts | (V)50 | 7,873,749,854.85 | 7,648,920,919.71 |
| Taxesandsurcharges | (V)51 | 151,196,943.57 | 172,556,579.92 |
| Administrativeexpenses | (V)52 | 1,584,882,935.02 | 1,509,520,581.66 |
| Researchanddevelopmentexpenses | 156,024,113.54 | 123,853,344.29 | |
| Financialexpenses | (V)53 | 1,232,729,624.82 | 1,936,269,737.53 |
| Including:Interestexpense | 1,949,882,376.69 | 2,089,837,594.54 | |
| Interestincome | 325,387,744.56 | 252,060,018.58 | |
| Add:Otherincome | (V)54 | 204,965,113.28 | 162,101,113.10 |
| Investmentincome | (V)55 | 4,905,975,438.22 | 4,619,173,755.42 |
| Including:Incomefrominvestmentsinassociatesandjointventures | (V)55 | 3,988,916,963.08 | 3,727,850,763.22 |
| Gainsfromchangesinfairvalue(Lossismarkedwith"-") | (V)56 | -411,508,773.58 | 66,483,266.48 |
| Gainsfromimpairmentofcredit(Lossismarkedwith"-") | (V)57 | -458,595,661.31 | -50,249,409.77 |
| Gainsfromimpairmentofassets(Lossismarkedwith"-") | (V)58 | -551,370,042.53 | 25,051.16 |
| Gainsondisposalofassets(Lossismarkedwith"-") | (V)59 | 1,489,206,502.32 | 4,794,562,782.79 |
| II.Operatingprofit | 6,798,619,100.62 | 10,324,804,819.81 | |
| Add:Non-operatingincome | (V)60 | 81,639,060.54 | 553,103,360.41 |
| Less:Non-operatingexpenses | (V)61 | 79,003,740.77 | 70,452,012.40 |
| III.Grossprofit | 6,801,254,420.39 | 10,807,456,167.82 | |
| Less:Incometaxexpenses | (V)62 | 1,275,686,369.83 | 2,640,538,894.62 |
| IV.Netprofit | 5,525,568,050.56 | 8,166,917,273.20 | |
| (I)Categorizationbycontinuityofoperation | |||
| 1.Netprofitfromcontinuingoperation | 5,525,568,050.56 | 8,166,917,273.20 | |
| 2.Netprofitfromdiscontinuedoperation | - | - | |
| (II)Categorizationbyattributionofownership | |||
| 1.Netprofitattributabletoshareholdersoftheparent | 2,065,322,969.66 | 2,898,192,168.84 | |
| 2.Profitorlossattributabletominorityshareholders | 3,460,245,080.90 | 5,268,725,104.36 | |
| V.Othercomprehensiveincome,netoftax | (V)64 | -1,849,656,940.86 | -1,096,285,894.51 |
| Othercomprehensiveincomeattributabletoownersoftheparent,netoftax | -470,752,737.15 | -443,076,984.15 | |
| (I)Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | -1,552,867.01 | 9,090,184.52 | |
| 1.Changesfromremeasurementofthedefinedbenefitplan | 10,248,546.35 | 1,069,722.83 | |
| 2.Othercomprehensiveincomethatcannotbereclassifiedtoprofitorlossundertheequitymethod | -11,817,008.06 | 4,830,921.62 | |
| 3.Fairvaluechangesofinvestmentsinotherequityinstruments | 15,594.70 | 3,189,540.07 | |
| (II)Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss | -469,199,870.14 | -452,167,168.67 | |
| 1.Othercomprehensiveincomethatcanbereclassifiedtoprofitorlossundertheequitymethod | 90,675,445.06 | -59,050,164.54 | |
| 2.Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | -559,875,315.20 | -393,117,004.13 | |
| Othercomprehensiveincomeattributabletominorityinterests,netoftax | -1,378,904,203.71 | -653,208,910.36 | |
| VI.Totalcomprehensiveincomeattributableto: | 3,675,911,109.70 | 7,070,631,378.69 | |
| Shareholdersoftheparent | 1,594,570,232.51 | 2,455,115,184.69 | |
| Minorityshareholders | 2,081,340,877.19 | 4,615,516,194.00 | |
| VII.Earningspershare | |||
| (I)Basicearningspershare | 1.07 | 1.59 | |
| (II)Dilutedearningspershare | 1.07 | 1.59 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-12-
FORTHEYEARENDED31DECEMBER2020
IncomeStatementoftheCompany
RMB
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| I.Operatingincome | (XV)3 | 6,653,002.66 | 92,042,598.05 |
| Less:Operatingcosts | (XV)3 | 2,265,959.64 | 76,084,023.73 |
| Taxesandsurcharges | 2,520,271.63 | 1,839,217.71 | |
| Administrativeexpenses | 133,748,040.20 | 60,487,851.03 | |
| Financialexpenses | 59,313,221.11 | 41,936,976.49 | |
| Including:Interestexpense | 87,576,683.75 | 42,810,942.02 | |
| Interestincome | 38,511,845.95 | 15,909,363.66 | |
| Add:Otherincome | 355,292.70 | 955,987.32 | |
| Investmentincome | (XV)4 | 2,975,643,847.56 | 1,306,222,961.66 |
| Including:Incomefrominvestmentsinassociatesandjointventures | (XV)4 | 57,647,049.81 | 70,092,131.84 |
| Gains(losses)fromchangesinfairvalue | 33,096,476.05 | - | |
| II.Operatingprofit | 2,817,901,126.39 | 1,218,873,478.07 | |
| Add:Non-operatingincome | 5,001.83 | 57,049.23 | |
| Less:Non-operatingexpenses | - | 81,092.18 | |
| III.Grossprofit | 2,817,906,128.22 | 1,218,849,435.12 | |
| Less:Incometaxexpenses | 214,455,979.69 | 187,155,447.57 | |
| IV.Netprofit | 2,603,450,148.53 | 1,031,693,987.55 | |
| V.Othercomprehensiveincome,netoftax | -58,353.75 | 2,956,451.25 | |
| (I)Othercomprehensiveincomethatcannotbereclassifiedtoprofitorloss | -58,353.75 | 2,956,451.25 | |
| 1.Changesfromremeasurementofthedefinedbenefitplan | - | - | |
| 2.Othercomprehensiveincomethatcannotbereclassifiedtoprofitorlossundertheequitymethod | - | - | |
| 3.Fairvaluechangesofinvestmentsinotherequityinstruments | -58,353.75 | 2,956,451.25 | |
| (II)Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss | - | - | |
| 1.Othercomprehensiveincomethatcanbereclassifiedtoprofitorlossundertheequitymethod | - | - | |
| 2.Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | - | - | |
| VI.Totalcomprehensiveincome | 2,603,391,794.78 | 1,034,650,438.80 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-13-
FORTHEYEARENDED31DECEMBER2020
ConsolidatedCashFlowStatement
RMB
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| I.CashFlowsfromOperatingActivities: | |||
| Cashreceiptsfromsalesofgoodsandrenderingofservices | 12,701,740,372.72 | 12,294,529,982.73 | |
| Receiptsoftaxrefunds | 42,485,481.75 | 23,569,265.92 | |
| Othercashreceiptsrelatingtooperatingactivities | (V)65(1) | 815,916,787.26 | 1,165,710,845.18 |
| Sub-totalofcashinflows | 13,560,142,641.73 | 13,483,810,093.83 | |
| Cashpaymentsforgoodspurchasedandservicesreceived | 3,470,983,798.59 | 3,593,786,248.69 | |
| Cashpaymentstoandonbehalfofemployees | 2,778,912,137.24 | 2,621,068,087.09 | |
| Paymentsofvarioustypesoftaxes | 1,062,476,005.92 | 957,382,790.97 | |
| Othercashpaymentsrelatingtooperatingactivities | (V)65(2) | 751,969,782.97 | 809,699,551.14 |
| Sub-totalofcashoutflows | 8,064,341,724.72 | 7,981,936,677.89 | |
| NetCashFlowsfromOperatingActivities | (V)66(1) | 5,495,800,917.01 | 5,501,873,415.94 |
| II.CashFlowsfromInvestingActivities: | |||
| Cashreceiptsfromdisposalsandrecoveryofinvestments | 9,137,020,345.82 | - | |
| Cashreceiptsfrominvestmentsincome | 1,551,111,503.37 | 1,804,725,809.65 | |
| Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 389,937,931.20 | 6,274,482,747.66 | |
| Netcashreceiptsfromdisposalofsubsidiariesandotheroperatingunits | - | 1,000,000.00 | |
| Othercashreceiptsrelatingtoinvestingactivities | (V)65(3) | 1,453,513,215.71 | 3,535,967,030.93 |
| Sub-totalofcashinflows | 12,531,582,996.10 | 11,616,175,588.24 | |
| Cashpaymentstoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets | 2,728,598,026.38 | 3,515,540,735.97 | |
| Cashpaymentstoacquireinvestments | 13,686,331,715.60 | 7,898,674,384.09 | |
| Netcashpaymentsforacquisitionsofsubsidiariesandotherbusinessunits | (V)65(4) | - | - |
| Othercashpaymentsrelatingtoinvestingactivities | (V)65(5) | 3,009,770,350.62 | 2,138,951,129.78 |
| Sub-totalofcashoutflows | 19,424,700,092.60 | 13,553,166,249.84 | |
| NetCashFlowsfromInvestingActivities | -6,893,117,096.50 | -1,936,990,661.60 | |
| III.CashFlowsfromFinancingActivities: | |||
| Cashreceiptsfromcapitalcontributions | 5,347,041,408.13 | 2,213,530,171.90 | |
| Including:CashreceiptsfromcapitalcontributionsfromMinorityshareholderofsubsidiary | 5,347,041,408.13 | 27,255,000.00 | |
| Cashreceiptsfromborrowings | 24,095,846,198.30 | 14,306,287,000.87 | |
| Cashreceiptsfromissueofbonds | 6,197,833,243.33 | - | |
| Othercashreceiptsrelatingtofinancingactivities | (V)65(6) | 1,937,954,936.36 | 1,713,327,483.01 |
| Sub-totalofcashinflows | 37,578,675,786.12 | 18,233,144,655.78 | |
| Cashrepaymentsofborrowings | 26,923,924,070.90 | 15,402,220,794.12 | |
| Cashpaymentsfordistributionofdividendsorprofitsorsettlementofinterestexpenses | 4,417,717,782.78 | 4,022,043,402.10 | |
| Including:PaymentsfordistributionofdividendsorprofitstoMinorityshareholderofsubsidiary | 1,586,039,122.85 | 1,745,724,195.29 | |
| Othercashpaymentsrelatingtofinancingactivities | (V)65(7) | 842,561,469.96 | 42,583,797.55 |
| Sub-totalofcashoutflows | 32,184,203,323.64 | 19,466,847,993.77 | |
| NetCashFlowsfromFinancingActivities | 5,394,472,462.48 | -1,233,703,337.99 | |
| IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents | 60,305,024.35 | 9,697,074.77 | |
| V.NetIncreaseinCashandCashEquivalents | 4,057,461,307.34 | 2,340,876,491.12 | |
| Add:OpeningbalanceofCashandCashEquivalents | (V)66(2) | 7,714,157,995.87 | 5,373,281,504.75 |
| VI.ClosingBalanceofCashandCashEquivalents | (V)66(2) | 11,771,619,303.21 | 7,714,157,995.87 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-14-
FORTHEYEARENDED31DECEMBER2020
CashFlowStatementoftheCompany
RMB
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| I.CashFlowsfromOperatingActivities: | |||
| Cashreceiptsfromsalesofgoodsandrenderingofservices | - | 104,722,961.87 | |
| Othercashreceiptsrelatingtooperatingactivities | 88,581,495.56 | 246,055,628.30 | |
| Sub-totalofcashinflows | 88,581,495.56 | 350,778,590.17 | |
| Cashpaymentsforgoodspurchasedandservicesreceived | - | 36,211,750.68 | |
| Cashpaymentstoandonbehalfofemployees | 56,294,477.30 | 85,120,511.18 | |
| Paymentsofvarioustypesoftaxes | 211,434,912.21 | 20,158,391.66 | |
| Othercashpaymentsrelatingtooperatingactivities | 61,598,017.83 | 53,795,218.14 | |
| Sub-totalofcashoutflows | 329,327,407.34 | 195,285,871.66 | |
| NetCashFlowsfromOperatingActivities | -240,745,911.78 | 155,492,718.51 | |
| II.CashFlowsfromInvestingActivities: | |||
| Cashreceiptsfromdisposalsandrecoveryofinvestments | 2,950,000,000.00 | - | |
| Cashreceiptsfrominvestmentincome | 1,530,980,750.04 | 57,727,526.33 | |
| Othercashreceiptsrelatingtoinvestingactivities | 297,303,477.07 | 612,722,414.48 | |
| Sub-totalofcashinflows | 4,778,284,227.11 | 670,449,940.81 | |
| Cashpaymentstoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets | 1,526,872.01 | 8,035,563.48 | |
| Cashpaymentstoacquireinvestments | 5,567,604,695.27 | 8,000,000.00 | |
| Netcashpaymentsforacquisitionsofsubsidiariesandotherbusinessunits | 3,006,793,109.07 | 386,159,390.00 | |
| Othercashpaymentsrelatingtoinvestingactivities | 436,450,231.63 | 2,060,171,330.96 | |
| Sub-totalofcashoutflows | 9,012,374,907.98 | 2,462,366,284.44 | |
| NetCashFlowsfromInvestingActivities | -4,234,090,680.87 | -1,791,916,343.63 | |
| III.CashFlowsfromFinancingActivities: | |||
| Cashreceiptsfromcapitalcontributions | - | 2,186,275,171.90 | |
| Cashreceiptsfromborrowings | 2,372,563,339.18 | 2,160,000,000.00 | |
| Cashreceiptsfromissueofbonds | 6,197,833,243.33 | - | |
| Othercashreceiptsrelatingtofinancingactivities | 544,400,000.00 | - | |
| Sub-totalofcashinflows | 9,114,796,582.51 | 4,346,275,171.90 | |
| Cashrepaymentsofborrowings | 3,233,786,000.00 | 2,167,116,843.58 | |
| Cashpaymentsfordistributionofdividendsorprofitsorsettlementofinterestexpenses | 905,286,543.64 | 239,800,502.62 | |
| Othercashpaymentsrelatingtofinancingactivities | 437,554,375.82 | 1,593,549.44 | |
| Sub-totalofcashoutflows | 4,576,626,919.46 | 2,408,510,895.64 | |
| NetCashFlowsfromFinancingActivities | 4,538,169,663.05 | 1,937,764,276.26 | |
| IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents | -427,725.05 | -497,294.65 | |
| V.NetIncreaseinCashandCashEquivalents | 62,905,345.35 | 300,843,356.49 | |
| Add:OpeningBalanceofCashandCashEquivalents | 690,685,211.42 | 389,841,854.93 | |
| VI.ClosingBalanceofCashandCashEquivalents | 753,590,556.77 | 690,685,211.42 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-15-
FORTHEYEARENDED31DECEMBER2020
ConsolidatedStatementofChangesinShareholders'Equity
RMB
| Item | 2020 | |||||||
| Equityattributabletoshareholdersoftheparent | Minorityinterests | Totalshareholders'equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Specialreserve | Surplusreserve | Unappropriatedprofit | |||
| I.Closingbalanceoftheprecedingyear | 1,922,365,124.00 | 22,296,485,467.35 | -355,944,565.91 | 12,386,734.70 | 630,345,307.43 | 11,467,166,351.85 | 59,017,403,192.82 | 94,990,207,612.24 |
| Add:Changesinaccountingpolicies | - | - | - | - | - | - | - | - |
| Correctionsofpriorperioderrors | - | - | - | - | - | - | - | - |
| Businesscombinationinvolvingenterprisesundercommoncontrol | - | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - | - |
| II.Openingbalanceoftheyear | 1,922,365,124.00 | 22,296,485,467.35 | -355,944,565.91 | 12,386,734.70 | 630,345,307.43 | 11,467,166,351.85 | 59,017,403,192.82 | 94,990,207,612.24 |
| III.Changesfortheyear | - | 508,583,868.14 | -470,752,737.15 | -2,185,556.40 | 260,345,014.85 | 849,011,043.32 | 9,541,758,286.07 | 10,686,759,918.83 |
| (I)Totalcomprehensiveincome | - | - | -470,752,737.15 | - | - | 2,065,322,969.66 | 2,081,340,877.19 | 3,675,911,109.70 |
| (II)Owners'contributionsandreductionincapital | - | 508,583,868.14 | - | - | - | - | 9,813,153,124.68 | 10,321,736,992.82 |
| 1.Ordinarysharescontributedbyshareholders | - | - | - | - | - | - | - | - |
| 2.Capitalcontributionfromholdersofotherequityinstruments | - | - | - | - | - | - | 5,347,041,408.13 | 5,347,041,408.13 |
| 3.Share-basedpaymentrecognizedinshareholders'equity | - | 10,096,607.62 | - | - | - | - | 9,116,783.96 | 19,213,391.58 |
| 4.Others | - | 498,487,260.52 | - | - | - | - | 4,456,994,932.59 | 4,955,482,193.11 |
| (III)Profitdistribution | - | - | - | - | 260,345,014.85 | -1,217,861,842.98 | -2,342,313,102.40 | -3,299,829,930.53 |
| 1.Transfertosurplusreserve | - | - | - | - | 260,345,014.85 | -260,345,014.85 | - | - |
| 2.Transfertogeneralriskreserve | - | - | - | - | - | - | - | - |
| 3.Distributionstoshareholders | - | - | - | - | - | -884,287,957.04 | -2,241,431,859.76 | -3,125,719,816.80 |
| 4.Others | - | - | - | - | - | -73,228,871.09 | -100,881,242.64 | -174,110,113.73 |
| (IV)Transferswithinshareholders'equity | - | - | - | -1,549,916.64 | - | 1,549,916.64 | - | - |
| 1.Capitalizationofcapitalreserve | - | - | - | - | - | - | - | - |
| 2.Capitalizationofsurplusreserve | - | - | - | - | - | - | - | - |
| 3.Lossoffsetbysurplusreserve | - | - | - | - | - | - | - | - |
| 4.Others | - | - | - | -1,549,916.64 | - | 1,549,916.64 | - | - |
| (V)Specialreserve | - | - | - | -635,639.76 | - | - | -10,422,613.40 | -11,058,253.16 |
| 1.Transfertospecialreserveintheperiod | - | - | - | 57,538,524.86 | - | - | 49,446,114.15 | 106,984,639.01 |
| 2.Amountutilizedintheperiod | - | - | - | -58,174,164.62 | - | - | -59,868,727.55 | -118,042,892.17 |
| (VI)Others | - | - | - | - | - | - | - | - |
| IV.Closingbalanceoftheyear | 1,922,365,124.00 | 22,805,069,335.49 | -826,697,303.06 | 10,201,178.30 | 890,690,322.28 | 12,316,177,395.17 | 68,559,161,478.89 | 105,676,967,531.07 |
CHINAMERCHANTSPORTGROUPCO.,LTD.
-16-
FORTHEYEARENDED31DECEMBER2020
ConsolidatedStatementofChangesinShareholders'Equity-continued
RMB
| Item | 2019 | |||||||
| Equityattributabletoshareholdersoftheparent | Minorityinterests | Totalshareholders'equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Specialreserve | Surplusreserve | Unappropriatedprofit | |||
| I.Closingbalanceoftheprecedingyear | 1,793,412,378.00 | 19,426,912,957.05 | 88,925,978.57 | 8,231,080.43 | 527,175,908.67 | 8,915,817,110.21 | 49,656,450,459.88 | 80,416,925,872.81 |
| Add:Changesinaccountingpolicies | - | - | - | - | - | -41,018,077.68 | -80,367,183.77 | -121,385,261.45 |
| Correctionsofpriorperioderrors | - | - | - | - | - | - | - | - |
| Businesscombinationinvolvingenterprisesundercommoncontrol | - | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - | - |
| II.Openingbalanceoftheyear | 1,793,412,378.00 | 19,426,912,957.05 | 88,925,978.57 | 8,231,080.43 | 527,175,908.67 | 8,874,799,032.53 | 49,576,083,276.11 | 80,295,540,611.36 |
| III.Changesfortheyear | 128,952,746.00 | 2,869,572,510.30 | -444,870,544.48 | 4,155,654.27 | 103,169,398.76 | 2,592,367,319.32 | 9,441,319,916.71 | 14,694,667,000.88 |
| (I)Totalcomprehensiveincome | - | - | -443,076,984.15 | - | - | 2,898,192,168.84 | 4,615,516,194.00 | 7,070,631,378.69 |
| (II)Owners'contributionsandreductionincapital | 128,952,746.00 | 2,869,572,510.30 | - | - | - | - | 6,867,048,857.78 | 9,865,574,114.08 |
| 1.Ordinarysharescontributedbyshareholders | 128,952,746.00 | 2,058,595,347.69 | - | - | - | - | 27,255,000.00 | 2,214,803,093.69 |
| 2.Capitalcontributionfromholdersofotherequityinstruments | - | - | - | - | - | - | - | - |
| 3.Share-basedpaymentrecognizedinshareholders'equity | - | - | - | - | - | - | - | - |
| 4.Others | - | 810,977,162.61 | - | - | - | - | 6,839,793,857.78 | 7,650,771,020.39 |
| (III)Profitdistribution | - | - | - | - | 103,169,398.76 | -307,618,409.85 | -2,040,721,489.06 | -2,245,170,500.15 |
| 1.Transfertosurplusreserve | - | - | - | - | 103,169,398.76 | -103,169,398.76 | - | - |
| 2.Transfertogeneralriskreserve | - | - | - | - | - | - | - | - |
| 3.Distributionstoshareholders | - | - | - | - | - | -204,449,011.09 | -2,040,721,489.06 | -2,245,170,500.15 |
| 4.Others | - | - | - | - | - | - | - | - |
| (IV)Transferswithinshareholders'equity | - | - | -1,793,560.33 | - | - | 1,793,560.33 | - | - |
| 1.Capitalizationofcapitalreserve | - | - | - | - | - | - | - | - |
| 2.Capitalizationofsurplusreserve | - | - | - | - | - | - | - | - |
| 3.Lossoffsetbysurplusreserve | - | - | - | - | - | - | - | - |
| 4.Others | - | - | -1,793,560.33 | - | - | 1,793,560.33 | - | - |
| (V)Specialreserve | - | - | - | 4,155,654.27 | - | - | -523,646.01 | 3,632,008.26 |
| 1.Transfertospecialreserveintheperiod | - | - | - | 108,062,435.41 | - | - | 115,436,394.98 | 223,498,830.39 |
| 2.Amountutilizedintheperiod | - | - | - | -103,906,781.14 | - | - | -115,960,040.99 | -219,866,822.13 |
| (VI)Others | - | - | - | - | - | - | - | - |
| IV.Closingbalanceoftheyear | 1,922,365,124.00 | 22,296,485,467.35 | -355,944,565.91 | 12,386,734.70 | 630,345,307.43 | 11,467,166,351.85 | 59,017,403,192.82 | 94,990,207,612.24 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-17-
FORTHEYEARENDED31DECEMBER2020
StatementofChangesinShareholders'EquityoftheCompany
RMB
| Item | 2020 | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Specialreserve | Surplusreserve | Unappropriatedprofit | Totalshareholders'equity | |
| I.Closingbalanceoftheprecedingyear | 1,922,365,124.00 | 27,576,242,527.73 | 105,594,576.25 | - | 630,345,307.43 | 983,693,068.62 | 31,218,240,604.03 |
| Add:Changesinaccountingpolicies | - | - | - | - | - | - | - |
| Correctionsofpriorperioderrors | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - |
| II.Openingbalanceoftheyear | 1,922,365,124.00 | 27,576,242,527.73 | 105,594,576.25 | - | 630,345,307.43 | 983,693,068.62 | 31,218,240,604.03 |
| III.Changesfortheyear | - | 15,604,875.00 | -58,353.75 | - | 260,345,014.85 | 1,458,817,176.64 | 1,734,708,712.74 |
| (I)Totalcomprehensiveincome | - | - | -58,353.75 | - | - | 2,603,450,148.53 | 2,603,391,794.78 |
| (II)Owners'contributionsandreductionincapital | - | 15,604,875.00 | - | - | - | - | 15,604,875.00 |
| 1.Ordinarysharescontributedbyshareholders | - | - | - | - | - | - | - |
| 2.Share-basedpaymentrecognizedinshareholders'equity | - | 15,604,875.00 | - | - | - | - | 15,604,875.00 |
| 3.Others | - | - | - | - | - | - | - |
| (III)Profitdistribution | - | - | - | - | 260,345,014.85 | -1,144,632,971.89 | -884,287,957.04 |
| 1.Transfertosurplusreserve | - | - | - | - | 260,345,014.85 | -260,345,014.85 | - |
| 2.Transfertogeneralriskreserve | - | - | - | - | - | - | - |
| 3.Distributionstoshareholders | - | - | - | - | - | -884,287,957.04 | -884,287,957.04 |
| 4.Others | - | - | - | - | - | - | - |
| (IV)Transferswithinshareholders'equity | - | - | - | - | - | - | - |
| 1.Capitalizationofcapitalreserve | - | - | - | - | - | - | - |
| 2.Capitalizationofsurplusreserve | - | - | - | - | - | - | - |
| 3.Lossoffsetbysurplusreserve | - | - | - | - | - | - | - |
| 4.Others | - | - | - | - | - | - | - |
| (V)Specialreserve | - | - | - | - | - | - | - |
| 1.Transfertospecialreserveintheperiod | - | - | - | - | - | - | - |
| 2.Amountutilizedintheperiod | - | - | - | - | - | - | - |
| (VI)Others | - | - | - | - | - | - | - |
| IV.Closingbalanceoftheyear | 1,922,365,124.00 | 27,591,847,402.73 | 105,536,222.50 | - | 890,690,322.28 | 2,442,510,245.26 | 32,952,949,316.77 |
CHINAMERCHANTSPORTGROUPCO.,LTD.
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FORTHEYEARENDED31DECEMBER2020
StatementofChangesinShareholders'EquityoftheCompany-continued
RMB
| Item | 2019 | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Specialreserve | Surplusreserve | Unappropriatedprofit | Totalshareholders'equity | |
| I.Closingbalanceoftheprecedingyear | 1,793,412,378.00 | 25,517,647,180.04 | 102,638,125.00 | 470,465.59 | 527,175,908.67 | 259,943,085.16 | 28,201,287,142.46 |
| Add:Changesinaccountingpolicies | - | - | - | - | - | -325,594.24 | -325,594.24 |
| Correctionsofpriorperioderrors | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - |
| II.Openingbalanceoftheyear | 1,793,412,378.00 | 25,517,647,180.04 | 102,638,125.00 | 470,465.59 | 527,175,908.67 | 259,617,490.92 | 28,200,961,548.22 |
| III.Changesfortheyear | 128,952,746.00 | 2,058,595,347.69 | 2,956,451.25 | -470,465.59 | 103,169,398.76 | 724,075,577.70 | 3,017,279,055.81 |
| (I)Totalcomprehensiveincome | - | - | 2,956,451.25 | - | - | 1,031,693,987.55 | 1,034,650,438.80 |
| (II)Owners'contributionsandreductionincapital | 128,952,746.00 | 2,058,595,347.69 | - | - | - | - | 2,187,548,093.69 |
| 1.Ordinarysharescontributedbyshareholders | 128,952,746.00 | 2,058,595,347.69 | - | - | - | - | 2,187,548,093.69 |
| 2.Share-basedpaymentrecognizedinshareholders'equity | - | - | - | - | - | - | - |
| 3.Others | - | - | - | - | - | - | - |
| (III)Profitdistribution | - | - | - | - | 103,169,398.76 | -307,618,409.85 | -204,449,011.09 |
| 1.Transfertosurplusreserve | - | - | - | - | 103,169,398.76 | -103,169,398.76 | - |
| 2.Transfertogeneralriskreserve | - | - | - | - | - | - | - |
| 3.Distributionstoshareholders | - | - | - | - | - | -204,449,011.09 | -204,449,011.09 |
| 4.Others | - | - | - | - | - | - | - |
| (IV)Transferswithinshareholders'equity | - | - | - | - | - | - | - |
| 1.Capitalizationofcapitalreserve | - | - | - | - | - | - | - |
| 2.Capitalizationofsurplusreserve | - | - | - | - | - | - | - |
| 3.Lossoffsetbysurplusreserve | - | - | - | - | - | - | - |
| 4.Others | - | - | - | - | - | - | - |
| (V)Specialreserve | - | - | - | -470,465.59 | - | - | -470,465.59 |
| 1.Transfertospecialreserveintheperiod | - | - | - | 919,167.67 | - | - | 919,167.67 |
| 2.Amountutilizedintheperiod | - | - | - | -1,389,633.26 | - | - | -1,389,633.26 |
| (VI)Others | - | - | - | - | - | - | - |
| IV.Closingbalanceoftheyear | 1,922,365,124.00 | 27,576,242,527.73 | 105,594,576.25 | - | 630,345,307.43 | 983,693,068.62 | 31,218,240,604.03 |
Theaccompanyingnotesformpartofthefinancialstatements.
-19-
(I)GENERALINFORMATIONOFTHECOMPANY
ChinaMerchantsPortGroupCompanyLimitedwasastocklimitedcompanyincorporatedinShenzhen,GuangdongProvince,on16January1993.TheheadquartersoftheCompanyislocatedinShenzhen,GuangdongProvince.TheCompanyanditssubsidiaries(collectivelythe"Group")areprincipallyengagedintherenderingofportservice,bondedlogisticsserviceandotherbusinessessuchaspropertydevelopmentandinvestment.TheCompany'sandconsolidatedfinancialstatementshavebeenapprovedbytheBoardofDirectorson29March2021.SeeNotes(VII)"EquityinOtherEntities"fordetailsofthescopeofconsolidatedfinancialstatementsinthecurrentyear.SeeNote(VI)"ChangesinScopeofConsolidation"fordetailsofchangesinthescopeofconsolidatedfinancialstatementsinthecurrentperiod.(II)BASISOFPREPARATIONOFFINANCIALSTATEMENTS
BasisofpreparationoffinancialstatementsTheGrouphasadoptedtheAccountingStandardsforBusinessEnterprises("ASBE")issuedbytheMinistryofFinance("MoF").Inaddition,theGrouphasdisclosedrelevantfinancialinformationinaccordancewithInformationDisclosureandPresentationRulesforCompaniesOfferingSecuritiestothePublicNo.15-GeneralProvisionsonFinancialReporting(Revisedin2014).GoingconcernAsat31December2020,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsofRMB3,870,940,636.24.On31December2020,theGrouphadavailableandunusedlineofcreditamountingtoRMB45,605,365,637.62,whichisgreaterthanthebalanceofthenetcurrentliabilities.TheGroupcanobtainfinancialsupportfromtheavailablelineofcreditwhenneeded.Therefore,thefinancialstatementshavebeenpreparedonagoingconcernbasis.BasisofaccountingandprincipleofmeasurementTheGrouphasadoptedtheaccrualbasisofaccounting.Exceptforcertainfinancialinstrumentswhicharemeasuredatfairvalue,theGroupadoptsthehistoricalcostastheprincipleofmeasurementofthefinancialstatements.Uponbeingrestructuredintoastockcompany,thefixedassetsandintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.
-20-
(II)BASISOFPREPARATIONOFFINANCIALSTATEMENTS-continued
Basisofaccountingandprincipleofmeasurement-continuedWherethehistoricalcostisadoptedasthemeasurementbasis,assetsarerecordedattheamountofcashorcashequivalentspaidorthefairvalueoftheconsiderationgiventoacquirethematthetimeoftheiracquisition.Liabilitiesarerecordedattheamountofproceedsorassetsreceivedorthecontractualamountsforassumingthepresentobligation,or,attheamountsofcashorcashequivalentsexpectedtobepaidtosettletheliabilitiesinthenormalcourseofbusiness.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate,regardlessofwhetherthatpriceisdirectlyobservableorestimatedusingvaluationtechnique.Fairvaluemeasurementand/ordisclosureinthefinancialstatementsaredeterminedaccordingtotheabovebasis.FairvaluemeasurementsarecategorizedintoLevel1,2or3basedonthedegreetowhichtheinputstothefairvaluemeasurementsareobservableandthesignificanceoftheinputstothefairvaluemeasurementinitsentirety,whicharedescribedasfollows:
?Level1inputsareunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthattheentitycanaccessatthemeasurementdate;?Level2inputsareinputs,otherthanquotedpricesincludedwithinLevel1,thatareobservablefortheassetorliability,eitherdirectlyorindirectly;and?Level3inputsareunobservableinputsfortheassetorliability.(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES
AllthefollowingsignificantaccountingpoliciesandaccountingestimatesarebasedontheAccountingStandardsforBusinessEnterprises("ASBE").
1.StatementofcompliancewiththeASBEThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewiththeASBE,andpresenttrulyandcompletely,theCompany’sandconsolidatedfinancialpositionasof31December2020,andtheCompany’sandconsolidatedresultsofoperations,theCompany’sandconsolidatedshareholders'equityandcashflowsfortheyearthenended.
2.AccountingperiodTheGrouphasadoptedthecalendaryearasitsaccountingyear,e.g.from1Januaryto31December.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
3.OperatingcycleAnoperatingcyclereferstotheperiodsincewhenanenterprisepurchasesassetsforprocessingpurposetilltherealizationofthoseassetsincashorcashequivalents.TheGroupareprincipallyengagedintherenderingofportservice,bondedlogisticsserviceandotherbusinessessuchaspropertydevelopmentandinvestmentwithoneyearbeinganoperatingcycle.
4.FunctionalcurrencyRenminbi("RMB")isthecurrencyoftheprimaryeconomicenvironmentinwhichtheCompanyanditsdomesticsubsidiariesoperate.Therefore,theCompanyanditsdomesticsubsidiarieschooseRMBastheirfunctionalcurrency.TheCompany'ssubsidiarieschoosetheirfunctionalcurrencyonthebasisoftheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadoptsRMBtoprepareitsfinancialstatements.
5.Theaccountingtreatmentofbusinesscombinationsinvolvingornotinvolvingenterprisesunder
commoncontrolBusinesscombinationsareclassifiedintobusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsnotinvolvingenterprisesundercommoncontrol.
5.1BusinesscombinationsinvolvingenterprisesundercommoncontrolAbusinesscombinationinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Assetsandliabilitiesobtainedshallbemeasuredattheirrespectivecarryingamountsasrecordedbythecombiningentitiesatthedateofthecombination.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombinationisadjustedtothesharepremiumincapitalreserve.Ifthesharepremiumisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.Coststhataredirectlyattributabletothecombinationarechargedtoprofitorlossintheperiodinwhichtheyareincurred.
5.2BusinesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwillAbusinesscombinationnotinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbeforeandafterthecombination.
-22-
(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
5.Theaccountingtreatmentofbusinesscombinationsinvolvingornotinvolvingenterprisesundercommon
control-continued
5.2Businesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwill-continuedThecostofcombinationistheaggregateofthefairvalues,attheacquisitiondate,oftheassetsgiven,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquire.Whereabusinesscombinationnotinvolvingenterprisesundercommoncontrolisachievedinstagesthatinvolvemultipletransactions,thecostofcombinationisthesumoftheconsiderationpaidattheacquisitiondateandthefairvalueattheacquisitiondateoftheacquirer'spreviouslyheldinterestintheacquiree.Theintermediaryexpenses(feesinrespectofauditing,legalservices,valuationandconsultancyservices,etc.)andotheradministrativeexpensesattributabletothebusinesscombinationarerecognizedinprofitorlossintheperiodswhentheyareincurred.Theacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesacquiredbytheacquirerinabusinesscombinationthatmeettherecognitioncriteriashallbemeasuredatfairvalueattheacquisitiondate.Whenabusinesscombinationcontractprovidesfortheacquirer'srecoveryofconsiderationpreviouslypaidcontingentononeormultiplefutureevent(s),theGrouprecognisesthecontingentconsiderationprovidedinthecontractasanasset,aspartoftheconsiderationtransferredinthebusinesscombination,andincludesitinthecostofbusinesscombinationatthefairvalueattheacquisitiondate.Within12monthsaftertheacquisition,wherethecontingentconsiderationneedstobeadjustedasneworfurtherevidencesareobtainedinrespectofthecircumstancesexistedattheacquisitiondate,theadjustmentshallberecognisedandtheamountoriginallyrecognisedingoodwillornon-operatingincomeshallbeadjusted.AchangeinoradjustmenttothecontingentconsiderationunderothercircumstancesshallbeaccountedforinaccordancewithAccountingStandardforBusinessEnterpriseNo.22-FinancialInstruments:RecognitionandMeasurementandAccountingStandardforBusinessEnterprisesNo.13-Contingencies.Anychangeoradjustmentisincludedinprofitorlossforthecurrentperiod.Wherethecostofcombinationexceedstheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,thedifferenceistreatedasanassetandrecognizedasgoodwill,whichismeasuredatcostoninitialrecognition.Wherethecostofcombinationislessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerreassessesthemeasurementofthefairvaluesoftheacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesandmeasurementofthecostofcombination.Ifafterthatreassessment,thecostofcombinationisstilllessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerrecognizestheremainingdifferenceimmediatelyinprofitorlossforthecurrentperiod.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
5.Theaccountingtreatmentofbusinesscombinationsinvolvingornotinvolvingenterprisesundercommon
control-continued
5.2Businesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwill-continuedIfeitherthefairvaluesofidentifiableassets,liabilitiesandcontingentliabilitiesacquiredinacombinationorthecostofbusinesscombinationcanbedeterminedonlyprovisionallybytheendoftheperiodinwhichthebusinesscombinationwaseffected,theacquirerrecognisesandmeasuresthecombinationusingthoseprovisionalvalues.Anyadjustmentstothoseprovisionalvalueswithintwelvemonthsaftertheacquisitiondatearetreatedasiftheyhadbeenrecognisedandmeasuredontheacquisitiondate.Goodwillarisingonabusinesscombinationismeasuredatcostlessaccumulatedimpairmentlosses,andispresentedseparatelyintheconsolidatedfinancialstatements.
6.Preparationmethodofconsolidatedfinancialstatements
6.1PreparationmethodofconsolidatedfinancialstatementsThescopeofconsolidationintheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlexistswhentheinvestorhaspowerovertheinvestee;isexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytouseitspowerovertheinvesteetoaffectitsreturns.TheGroupreassesseswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechangesoftheaboveelementsofthedefinitionofcontrol.ConsolidationofasubsidiarybeginswhentheGroupobtainscontroloverthesubsidiariesandceaseswhentheGrouplosescontrolofthesubsidiary.ForasubsidiaryalreadydisposedofbytheGroup,theoperatingresultsandcashflowsbeforethedateofdisposal(thedatewhencontrolislost)areincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriate.Forsubsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesnotundercommoncontrol,theoperatingresultsandcashflowsfromtheacquisitiondate(thedatewhencontrolisobtained)areincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriate.Nomatterwhenthebusinesscombinationoccursinthereportingperiod,subsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrolorthepartybeingabsorbedundermergerbyabsorptionareincludedintheGroup'sscopeofconsolidationasiftheyhadbeenincludedinthescopeofconsolidationfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingparty.Theiroperatingresultsandcashflowsfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingpartyareincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriate.
-24-
(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
6.Preparationmethodofconsolidatedfinancialstatements-continued
6.1Preparationmethodofconsolidatedfinancialstatements-continuedThesignificantaccountingpoliciesandaccountingperiodsadoptedbythesubsidiariesaredeterminedbasedontheuniformaccountingpoliciesandaccountingperiodssetoutbytheCompany.Wheretheaccountingpolicies/accountingperiodsadoptedbysubsidiariesareinconsistentwiththoseoftheCompany,appropriateadjustmentsaremadetothesubsidiaries'financialstatementsinaccordancewiththeaccountingpoliciesoftheCompany.Allsignificantintra-groupbalancesandtransactionsareeliminatedonconsolidation.Theportionofsubsidiaries'equitythatisnotattributabletotheparentistreatedasminorityinterestsandpresentedas"minorityinterests"intheconsolidatedbalancesheetundershareholders'equity.Theportionofnetprofitsorlossesofsubsidiariesfortheperiodattributabletominorityinterestsispresentedas"minorityinterests"intheconsolidatedincomestatementunderthe"netprofit"lineitem.Whentheamountoflossfortheperiodattributabletotheminorityshareholdersofasubsidiaryexceedstheminorityshareholders'portionoftheopeningbalanceofshareholders'equityofthesubsidiary,theexcessamountisstillallocatedagainstminorityinterests.Acquisitionofminorityinterestsordisposalsofinterestsinasubsidiarythatdonotresultinthelossofcontroloverthesubsidiaryareaccountedforasequitytransactions.Thecarryingamountsoftheparent'sinterestsandminorityinterestsareadjustedtoreflectthechangesintheirrelativeinterestsinthesubsidiary.Thedifferencebetweentheamountbywhichtheminorityinterestsareadjustedandthefairvalueoftheconsiderationpaidorreceivedisadjustedtocapitalreserve.Ifthecapitalreserveisnotsufficienttoabsorbthedifference,theexcessareadjustedagainstretainedearnings.Forthestepwiseacquisitionofequityinteresttillacquiringcontrolafterafewtransactionsandleadingtobusinesscombinationnotinvolvingenterprisesundercommoncontrol,thisshouldbedealtwithbasedonwhetherthisbelongsto'packagedeal':ifitbelongsto'packagedeal',transactionswillbedealtastransactionstoacquirecontrol.Ifitdoesnotbelongto'packagedeal',transactionstoacquirecontrolonacquisitiondatewillbeunderaccountingtreatment,thefairvalueofacquirees'sharesheldbeforeacquisitiondatewillberevalued,andthedifferencebetweenfairvalueandbookvaluewillberecognizedinprofitorlossofthecurrentperiod;ifacquirees'sharesheldbeforeacquisitiondateinvolveinchangesofothercomprehensiveincomeandotherequityofownersunderequitymethod,thiswillbetransferredtoincomeofacquisitiondate.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
6.Preparationmethodofconsolidatedfinancialstatements-continued
6.1Preparationmethodofconsolidatedfinancialstatements-continuedWhentheGrouplosescontroloverasubsidiaryduetodisposalofequityinvestmentorotherreasons,anyretainedinterestisre-measuredatitsfairvalueatthedatewhencontrolislost.Thedifferencebetween(i)theaggregateoftheconsiderationreceivedondisposalandthefairvalueofanyretainedinterestand(ii)theshareoftheformersubsidiary'snetassetscumulativelycalculatedfromtheacquisitiondateaccordingtotheoriginalproportionofownershipinterestsisrecognizedasinvestmentincomeintheperiodinwhichcontrolislost,andthegoodwillisoffsetaccordingly.Othercomprehensiveincomeassociatedwithinvestmentintheformersubsidiaryisreclassifiedtoinvestmentincomeintheperiodinwhichcontrolislost.WhentheGrouplosescontrolofasubsidiaryintwoormorearrangements(transactions),termsandconditionsofthearrangements(transactions)andtheireconomiceffectsareconsidered.OneormoreofthefollowingindicatethattheGroupshallaccountforthemultiplearrangementsasa'packagedeal':(i)theyareenteredintoatthesametimeorincontemplationofeachother;(ii)theyformacompletetransactiondesignedtoachieveanoverallcommercialeffect;(iii)theoccurrenceofonetransactionisdependentontheoccurrenceofatleastoneothertransaction;(iv)onetransactionaloneisnoteconomicallyjustified,butitiseconomicallyjustifiedwhenconsideredtogetherwithothertransactions.Wherethetransactionsofdisposalofequityinvestmentsinasubsidiaryuntilthelossofcontrolareassessedasapackagedeal,thesetransactionsareaccountedforasonetransactionofdisposalofasubsidiarywithlossofcontrol.Beforelosingcontrol,thedifferenceofconsiderationreceivedondisposalandtheshareofnetassetsofthesubsidiarycontinuouslycalculatedfromacquisitiondateisrecognizedasothercomprehensiveincome.Whenlosingcontrol,thecumulatedothercomprehensiveincomeistransferredtoprofitorlossoftheperiodoflosingcontrol.Ifthetransactionsofdisposalofequityinvestmentsinasubsidiaryarenotassessedasapackagedeal,thesetransactionsareaccountedforasunrelatedtransactions.
7.ClassificationofjointarrangementsandtheaccountingtreatmentsofjointoperationsTherearetwotypesofjointarrangements-jointoperationsandjointventures.Theclassificationofjointarrangementsunderisdeterminedbasedontherightsandobligationsofpartiestothejointarrangementsbyconsideringthestructure,thelegalformofthearrangements,thecontractualtermsagreedbythepartiestothearrangement.Ajointoperationisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstotheassets,andobligationsfortheliabilities,relatingtothearrangement.Ajointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthearrangement.InvestmentsinjointventuresareaccountedforusingtheequitymethodbytheGroup,whichisdetailedinNotes(III)
16.3.2,"Long-termequityinvestmentsaccountedforusingtheequitymethod".
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
7.Classificationofjointarrangementsandtheaccountingtreatmentsofjointoperations-continuedTheGroupasajointoperatorrecognizesthefollowingitemsinrelationtoitsinterestinajointoperation:(1)itssolely-heldassets,includingitsshareofanyassetsheldjointly;(2)itssolely-assumedliabilities,includingitsshareofanyliabilitiesincurredjointly;(3)itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;(4)itsshareoftherevenuefromthesaleoftheoutputbythejointoperation;and(5)itssolely-incurredexpenses,includingitsshareofanyexpensesincurredjointly.TheGroupaccountsfortherecognizedassets,liabilities,revenuesandexpensesrelatingtoitsinterestinajointoperationinaccordancewiththerequirementsapplicabletotheparticularassets,liabilities,revenuesandexpenses.
8.RecognitioncriteriaofcashandcashequivalentsCashcomprisescashonhandanddepositsthatcanbereadilywithdrawnondemand.CashequivalentsaretheGroup'sshort-term(generallyduewithin3monthssincetheacquisitiondate),highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.
9.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancialstatementsdenominated
inforeigncurrencies
9.1TransactionsdenominatedinforeigncurrenciesAforeigncurrencytransactionisrecorded,oninitialrecognition,byapplyingthespotexchangerateonthedateofthetransaction.Atthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedintofunctionalcurrencyusingthespotexchangeratesatthebalancesheetdate.Exchangedifferencesarisingfromthedifferencesbetweenthespotexchangeratesprevailingatthebalancesheetdateandthoseoninitialrecognitionoratthepreviousbalancesheetdatearerecognizedinprofitorlossfortheperiod,exceptthat(1)exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencythatqualifyforcapitalizationarecapitalizedaspartofthecostofthequalifyingassetduringthecapitalizationperiod;(2)exchangedifferencesrelatedtohedginginstrumentsforthepurposeofhedgingagainstforeigncurrencyrisksareaccountedforusinghedgeaccounting;(3)exchangedifferencesarisingfromchangesinthecarryingamounts(otherthantheamortisedcost)ofmonetaryitemsatfairvaluethroughothercomprehensiveincomearerecognisedasothercomprehensiveincome.Whentheconsolidatedfinancialstatementsincludeforeignoperation(s),ifthereisforeigncurrencymonetaryitemconstitutinganetinvestmentinaforeignoperation,exchangedifferencearisingfromchangesinexchangeratesarerecognizedas"exchangedifferencesarisingontranslationoffinancialstatementsdenominatedinforeigncurrencies"inothercomprehensiveincome,andinprofitandlossfortheperiodupondisposaloftheforeignoperation.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
9.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancialstatementsdenominated
inforeigncurrencies-continued
9.1Transactionsdenominatedinforeigncurrencies-continuedForeigncurrencynon-monetaryitemsmeasuredathistoricalcostaretranslatedtotheamountsinfunctionalcurrencyatthespotexchangeratesonthedatesofthetransactions;theamountsinfunctionalcurrencyremainunchanged.Foreigncurrencynon-monetaryitemsmeasuredatfairvaluearere-translatedatthespotexchangerateonthedatethefairvalueisdetermined.Differencebetweenthere-translatedfunctionalcurrencyamountandtheoriginalfunctionalcurrencyamountistreatedaschangesinfairvalue(includingchangesofexchangerate)andisrecognizedinprofitandlossorasothercomprehensiveincome.
9.2TranslationoffinancialstatementsdenominatedinforeigncurrenciesForthepurposeofpreparingtheconsolidatedfinancialstatements,financialstatementsofaforeignoperationaretranslatedfromtheforeigncurrencyintoRMBusingthefollowingmethod:assetsandliabilitiesonthebalancesheetaretranslatedatthespotexchangerateprevailingatthebalancesheetdate;shareholders'equityitemsexceptforunappropriatedprofitaretranslatedatthespotexchangeratesatthedatesonwhichsuchitemsarose;allitemsintheincomestatementaswellasitemsreflectingthedistributionofprofitsaretranslatedattheaverageexchangeratesoftheaccountingperiodoftheconsolidatedfinancialstatements;theopeningbalanceofunappropriatedprofitisthetranslatedclosingbalanceofthepreviousyear'sunappropriatedprofit;theclosingbalanceofunappropriatedprofitiscalculatedandpresentedonthebasisofeachtranslatedincomestatementandprofitdistributionitem.Thedifferencebetweenthetranslatedassetsandtheaggregateofliabilitiesandshareholders'equityitemsisrecognizedasothercomprehensiveincomeandincludedinshareholders'equity.Cashflowsarisingfromatransactioninforeigncurrencyandthecashflowsofaforeignsubsidiaryaretranslatedataverageexchangerateduringtheaccountingperiodofconsolidatedfinancialstatements.Theeffectofexchangeratechangesoncashandcashequivalentsisregardedasareconcilingitemandpresentedseparatelyinthecashflowstatementas"effectofexchangeratechangesoncashandcashequivalents".Theclosingbalancesandthecomparativefiguresofpreviousyeararepresentedatthetranslatedamountsinthepreviousyear'sfinancialstatements.OndisposaloftheGroup'sentireinterestinaforeignoperation,oruponalossofcontroloveraforeignoperationduetodisposalofcertaininterestinitorotherreasons,theGrouptransferstheaccumulatedexchangedifferencesarisingontranslationoffinancialstatementsofthisforeignoperationattributabletotheowners'equityoftheCompanyandpresentedunderowners'equity,toprofitorlossintheperiodinwhichthedisposaloccurs.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
9.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancialstatementsdenominated
inforeigncurrencies-continued
9.2Translationoffinancialstatementsdenominatedinforeigncurrencies-continuedIncaseofadisposalofpartequityinvestmentsorotherreasonleadingtolowerinterestpercentageinforeignoperationsbutdoesnotresultintheGrouplosingcontroloveraforeignoperation,theexchangedifferencesarisingfromthetranslationofforeigncurrencyfinancialstatementsrelatedtothisdisposedpartarere-attributedtominorityinterestsandarenotrecognizedinprofitandloss.Forpartialdisposalsofequityinterestsinforeignoperationswhichareassociatesorjointventures,theproportionateshareoftheaccumulatedexchangedifferencesarisingontranslationoffinancialstatementsofforeignoperationsisreclassifiedtoprofitorloss.
10.FinancialinstrumentsTheGrouprecognizesafinancialassetorafinancialliabilitywhenitbecomesapartytothecontractualprovisionsofafinancialinstrument.Allregularwaypurchasesorsalesoffinancialassetsarerecognizedandderecognizedonatradedatebasis.Financialassetsandfinancialliabilitiesareinitiallymeasuredatfairvalue.Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,relevanttransactioncostsaredirectlyrecognizedinprofitorloss;transactioncostsrelatingtoothercategoriesoffinancialassetsandfinancialliabilitiesareincludedinthevalueinitiallyrecognized.ForaccountsreceivablerecognizedthatdonotcontainasignificantfinancingcomponentorafinancingcomponentincludedinthecontractslessthanoneyearwhicharenotconsideredbytheGroup,whicharewithinthescopeofAccountingStandardforBusinessEnterprisesNo.14-Revenue(hereinafterreferredtoas"revenuestandards"),transactionpricesdefinedinthestandardsshallbeadoptedoninitialrecognition.Theeffectiveinterestmethodisamethodthatisusedinthecalculationoftheamortizedcostofafinancialassetorafinancialliabilityandintheallocationoftheinterestincomeorinterestexpenseinprofitorlossovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashflowsthroughtheexpectedlifeofthefinancialassetorfinancialliabilitytothegrosscarryingamountofafinancialassetortotheamortizedcostofafinancialliability.Whencalculatingtheeffectiveinterestrate,theGroupestimatesfuturecashflowsbyconsideringallthecontractualtermsofthefinancialassetorfinancialliability(forexample,prepayment,extension,calloptionorsimilaroptions)butshallnotconsidertheexpectedcreditlosses.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continuedTheamortizedcostofafinancialassetorafinancialliabilityistheamountofafinancialassetorafinancialliabilityinitiallyrecognizednetofprincipalrepaid,plusorlessthecumulativeamortizedamountarisingfromamortizationofthedifferencebetweentheamountinitiallyrecognizedandtheamountatthematuritydateusingtheeffectiveinterestmethod,netofcumulativecreditlossallowance(onlyapplicabletofinancialassets).
10.1Classification,recognitionandmeasurementoffinancialassetsSubsequenttoinitialrecognition,theGroup'sfinancialassetsofvariouscategoriesaresubsequentlymeasuredatamortizedcost,atfairvaluethroughothercomprehensiveincomeoratfairvaluethroughprofitorloss.Ifcontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,andthefinancialassetisheldwithinabusinessmodelwhoseobjectiveistoholdfinancialassetsinordertocollectcontractualcashflows,suchassetisclassifiedintofinancialassetsmeasuredatamortizedcost,whichincludecashandbankbalances,notesreceivable,accountsreceivable,otherreceivables,debtinvestments,andlong-termreceivablesandetc.Financialassetsthatmeetthefollowingconditionsaresubsequentlymeasuredatfairvaluethroughothercomprehensiveincome("FVTOCI"):thefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandselling;andthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.FinancialassetsatFVTOCIarepresentedasotherdebtinvestments.Otherdebtinvestmentsduewithinoneyear(inclusive)sincethebalancesheetdatearepresentedasnon-currentassetsduewithinoneyear.Otherdebtinvestmentsduewithinoneyear(inclusive)uponacquisitionarepresentedasothercurrentassets.Oninitialrecognition,theGroupmayirrevocablydesignatenon-tradingequityinstruments,otherthancontingentconsiderationrecognizedthroughbusinesscombinationnotinvolvingenterprisesundercommoncontrol,asfinancialassetsatFVTOCIonanindividualbasis.SuchfinancialassetsatFVTOCIarepresentedasotherequityinstrument.Afinancialassetisclassifiedasheldfortradingifoneofthefollowingconditionsissatisfied:
?Ithasbeenacquiredprincipallyforthepurposeofsellinginthenearterm;or?OninitialrecognitionitispartofaportfolioofidentifiedfinancialinstrumentsthattheGroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-termprofit-taking;or?Itisaderivativethatisnotafinancialguaranteecontractordesignatedandeffectiveasa
hedginginstrument.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.1Classification,recognitionandmeasurementoffinancialassets-continuedFinancialassetsmeasuredatfairvaluethroughprofitorloss("FVTPL")includethoseclassifiedasfinancialassetsatFVTPLandthosedesignatedasfinancialassetsatFVTPL.
?Anyfinancialassetsthatdoesnotqualifyforamortizedcostmeasurementormeasurement
atFVTOCIordesignatedatFVTOCIareclassifiedintofinancialassetsatFVTPL.?Uponinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatch
andqualifiedhybridfinancialinstrumentcombinesfinancialassetwithembedded
derivatives,theGroupwillirrevocablydesignateditasfinancialliabilitiesatFVTPL.
FinancialassetsatFVTPLassetsotherthanderivativefinancialassetsarepresentedas"held-for-tradingfinancialassets".SuchfinancialassetsatFVTPLwhichmayfallduemorethanoneyear(orwithoutfixedterm)sincethebalancesheetdateandwillbeheldmorethanoneyeararepresentedasothernon-currentfinancialassets.
10.1.1FinancialassetsmeasuredatamortizedcostFinancialassetsmeasuredatamortizedcostaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestmethod.Gainorlossarisingfromimpairmentorderecognitionisrecognizedinprofitorloss.Forfinancialassetsmeasuredatamortizedcost,theGrouprecognizesinterestincomeusingeffectiveinterestmethod.TheGroupcalculatesandrecognizesinterestincomethroughbookvalueoffinancialassetsmultiplyingeffectiveinterest,exceptforthefollowingcircumstances:
?Forpurchasedororiginatedcredit-impairedfinancialassetswithcreditimpairment,the
Groupcalculatesandrecognizesitsinterestincomebasedonamortizedcostofthefinancial
assetandtheeffectiveinterestthroughcreditadjustmentsinceinitialrecognition.
10.1.2FinancialassetsatFVTOCIImpairmentlossesorgainsrelatedtofinancialassetsatFVTOCI,interestincomemeasuredusingeffectiveinterestmethodandexchangegainsorlossesarerecognizedintoprofitorlossforthecurrentperiod,exceptfortheabovecircumstances,changesinfairvalueofthefinancialassetsareincludedinothercomprehensiveincome.Amountschargedtoprofitorlossforeveryperiodequaltotheamountchargedtoprofitorlossasitismeasuredatamortizedcosts.Whenthefinancialassetisderecognized,thecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeshallberemovedfromothercomprehensiveincomeandrecognizedinprofitorloss.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.1Classification,recognitionandmeasurementoffinancialassets-continued
10.1.2FinancialassetsatFVTOCI-continuedChangesinfairvalueofnon-tradingequityinstrumentinvestmentsdesignatedasfinancialassetsatFVTOCIarerecognizedinothercomprehensiveincome,andthecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeallocatedtothepartderecognizedaretransferredandincludedinretainedearnings.DuringtheperiodinwhichtheGroupholdsthenon-tradingequityinstrument,revenuefromdividendsisrecognizedinprofitorlossforthecurrentperiodwhen(1)theGrouphasestablishedtherightofcollectingdividends;(2)itisprobablethattheassociatedeconomicbenefitswillflowtotheGroup;and(3)theamountofdividendscanbemeasuredreliably.
10.1.3FinancialassetsatFVTPLFinancialassetsatFVTPLaresubsequentlymeasuredatfairvalue.Gainorlossarisingfromchangesinfairvaluesanddividendsandinterestsrelatedtothefinancialassetsarerecognizedinprofitorloss.
10.2ImpairmentoffinancialinstrumentsTheGroupmakesaccountingtreatmentonimpairmentandrecognizeslossallowanceforexpectedcreditlosses("ECL")onfinancialassetsmeasuredatamortizedcost,financialassetsclassifiedasatFVTOCI,leasereceivables,contractassets,loancommitmentsthatarenotfinancialliabilitiesatFVTPL,financialliabilitiesnotmeasuredatFVTPL,financialguaranteecontractsarisingfromtransferoffinancialassetswhichdoesnotsatisfyderecognitioncriteriaorcontinuinginvolvementoftransferredfinancialassets.TheGroupmakesalossallowanceagainstamountoflifetimeECLofthecontractassets,notesreceivableandaccountsreceivablearisingfromtransactionsadoptingtheRevenueStandardaswellasleasereceivablesarisingfromtransactionsadoptingASBENo.21-Leases.Forotherfinancialinstrument,otherthanpurchasedororiginatedcredit-impairedfinancialassets,theGroupassesseschangesincreditrisksoftherelevantfinancialassetsinceinitialrecognitionateachbalancesheetdate.Ifthecreditlossofthefinancialinstrumenthasbeensignificantlyincreasedsinceinitialrecognition,theGroupwillmakealossallowanceatanamountofexpectedcreditlossduringthewholelife;ifnot,theGroupwillmakealossallowanceforthefinancialinstrumentatanamountinthefuture12-monthexpectedcreditlosses.ExceptforthefinancialassetsclassifiedasatFVTOCI,increaseinorreversalofcreditlossallowanceisincludedinprofitorlossasloss/gainonimpairment.ForthefinancialassetsclassifiedasatFVTOCI,theGrouprecognizescreditlossallowanceinothercomprehensiveincomeandrecognizestheloss/gainonimpairmentinprofitorloss,whiletheGroupdoesnotdecreasethecarryingamountofsuchfinancialassetsinthebalancesheet.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.2Impairmentoffinancialinstruments-continuedTheGrouphasmakesalossallowanceagainstamountofexpectedcreditlossesduringthewholelifeintheprioraccountingperiod.However,atthebalancesheetdate,thecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition;theGroupwillmeasurethelossallowanceforthatfinancialinstrumentatanamountinthefuture12-monthexpectedcreditlosses.Reversedamountoflossallowancearisingfromsuchcircumstancesshallbeincludedinprofitorlossasimpairmentgains.
10.2.1SignificantincreaseofcreditriskInassessingwhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition,theGroupcomparestheriskofadefaultoccurringonthefinancialinstrumentasatthereportingdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognition.Forloancommitments,thedatethattheGroupbecomesapartytotheirrevocablecommitmentisconsideredtobethedateofinitialrecognitionintheapplicationofcriteriarelatedtothefinancialinstrumentforimpairment.Inparticular,thefollowinginformationistakenintoaccountwhenassessingwhethercreditriskhasincreasedsignificantly:
(1)Significantchangesininternalpriceindicatorsofcreditriskasaresultofachangeincreditrisk;
(2)Otherchangesintheratesortermsofanexistingfinancialinstrumentthatwouldbesignificantlydifferentif
theinstrumentwasnewlyoriginatedorissuedatthebalancesheetdate(suchasmorestringentcovenants,increasedamountsofcollateralorguarantees,orhigherincomecoverage).
(3)Significantchangesinexternalmarketindicatorsofcreditriskforaparticularfinancialinstrumentorsimilar
financialinstrumentswiththesameexpectedlife.Theseindicatorsincludethecreditspread,thecreditswappricesfortheborrower,thelengthoftimeortheextenttowhichthefairvalueofafinancialassethasbeenlessthanitsamortizedcostandothermarketinformationrelatedtotheborrower,suchaschangesinthepriceofaborrower’sdebtandequityinstruments.
(4)Significantchangesinactualorexpectedexternalcreditratingforthefinancialinstruments;
(5)Anactualorexpectedinternalcreditratingdowngradefortheborrower
(6)Adversechangesinbusiness,financialoreconomicconditionsthatareexpectedtocauseasignificant
changeinthedebtor’sabilitytomeetitsdebtobligations;
(7)Anactualorexpectedsignificantchangeintheoperatingresultsofthedebtor;
(8)Significantincreasesincreditriskonotherfinancialinstrumentsofthesameborrower;
(9)Significantadversechangeintheregulatory,economic,ortechnologicalenvironmentofthedebtor;
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.2Impairmentoffinancialinstruments-continued
10.2.1Significantincreaseofcreditrisk-continued
(10)Significantchangesinthevalueofthecollateralsupportingtheobligationorinthequalityofthird-party
guaranteesorcreditenhancements,whichareexpectedtoreducethedebtor’seconomicincentivetomakescheduledcontractualpaymentsortootherwisehaveaneffectontheprobabilityofadefaultoccurring.
(11)Significantchangesincircumstancesexpectedtoreducethedebtor’seconomicincentivetomakescheduled
contractualpayments;
(12)Expectedchangesintheloandocumentationincludinganexpectedbreachofcontractthatmayleadto
covenantwaiversoramendments,interestpaymentholidays,interestratestep-ups,requiringadditionalcollateralorguarantees,orotherchangestothecontractualframeworkofthefinancialinstrument;
(13)Significantchangesintheexpectedperformanceandbehaviorofthedebtor;
(14)Changesintheentity’screditmanagementapproachinrelationtothefinancialinstrument;
(15)Pastdueofcontractpayment.TheGroupassumesthatthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognitionifthefinancialinstrumentisdeterminedtohavelowercreditriskatthebalancesheetdate.Afinancialinstrumentisdeterminedtohavelowercreditriskif:i)ithasalowerriskofdefault,ii)theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandiii)adversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.
10.2.2Credit-impairedfinancialassetsWhentheGroupexpectedoccurrenceofoneormoreeventswhichmaycauseadverseimpactonfuturecashflowsofafinancialasset,thefinancialassetwillbecomeacredit-impairedfinancialassets.Objectiveevidencethatafinancialassetisimpairedincludesbutnotlimitedtothefollowingobservableevents:
(1)Significantfinancialdifficultyoftheissuerordebtor;
(2)Abreachofcontractbythedebtor,suchasadefaultordelinquencyininterestorprincipalpayments;
(3)Thecreditor,foreconomicorlegalreasonsrelatingtothedebtor’sfinancialdifficulty,grantingaconcession
tothedebtor;
(4)Itbecomingprobablethatthedebtorwillenterbankruptcyorotherfinancialreorganizations;
(5)Thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancialdifficultiesoftheissueror
thedebtor;
(6)Purchaseororiginateafinancialassetwithalargescaleofdiscount,whichreflectsfactsofcreditloss
incurred.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.2Impairmentoffinancialinstruments-continued
10.2.3DeterminationofexpectedcreditlossLeasereceivablesareassessedforECLindividuallybytheGroup.Inaddition,theGroupusesprovisionmatrixtocalculateECLfornotesreceivable,accountsreceivable,otherreceivables,contractassets,debtinvestmentsandotherdebtinvestmentsbasedonaportfoliobasis.TheGroupclassifiesfinancialinstrumentsintodifferentgroupsbasedoncommonriskcharacteristics.Commoncreditriskcharacteristicsincludecreditriskrating,thedateofinitialrecognition,remainingcontractualmaturity,industryofborrowerandgeographicallocationoftheborroweretc.TheGroupdeterminesexpectedcreditlossesofrelevantfinancialinstrumentsusingthefollowingmethods:
?Forafinancialasset,acreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflowsthat
areduetotheGroupunderthecontractandthecashflowsthattheGroupexpectstoreceive;?Foraleasereceivable,acreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflows
thatareduetotheGroupunderthecontractandthecashflowsthattheGroupexpectstoreceive;?Forundrawnloancommitments(refertoNoteIII,10.4.1.3forthedetailofaccountingpolicies),theECListhe
presentvalueofthedifferencebetweenthecontractualcashflowsthatareduetotheGroupiftheholderofthe
loancommitmentsdrawsdowntheloan,andthecashflowsthattheGroupexpectstoreceiveiftheloanis
drawndown.TheGroup'sestimationoftheECLforloancommitmentsisconsistentwithitsexpectationofthe
loancommitmentsdrawndown.?Forafinancialguaranteecontract(refertoNoteIII,10.4.1.3forthedetailofaccountingpolicies),the
expectedlossesisthepresentvalueoftheexpectedpaymentstoreimbursetheholderforacreditlossthatit
incurslessanyamountsthattheGroupexpectstoreceivefromtheholder,thedebtororanyotherparty.?Forafinancialassetwithcredit-impairedatthebalancesheetdate,butnotpurchasedororiginatedcredit-
impaired,acreditlossesisthedifferencebetweentheasset’sgrosscarryingamountandthepresentvalueof
estimatedfuturecashflowsdiscountedatthefinancialasset’soriginaleffectiveinterestrate.Thefactorsreflectedinmethodsofmeasurementofexpectedcreditlossesincludeanunbiasedandprobability-weightedamountthatisdeterminedbyevaluatingarangeofpossibleoutcomes;timevalueofmoney;reasonableandsupportableinformationaboutpastevents,currentconditionsandforecastsonfutureeconomicstatusatbalancesheetdatewithoutunnecessaryadditionalcostsorefforts.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.2Impairmentoffinancialinstruments-continued
10.2.4Write-downoffinancialassetsWhentheGroupwillnolongerreasonablyexpectthatthecontractualcashflowsoffinancialassetscanbecollectedinaggregateorinpart,theGroupwilldirectlywritedownthecarryingamountofthefinancialasset,whichconstitutesderecognitionofrelevantfinancialassets.
10.3TransferoffinancialassetsTheGroupwillderecognizeafinancialassetifoneofthefollowingconditionsissatisfied:(i)thecontractualrightstothecashflowsfromthefinancialassetexpire;(ii)thefinancialassethasbeentransferredandsubstantiallyalltherisksandrewardsofownershipofthefinancialassetistransferredtothetransferee;or(iii)althoughthefinancialassethasbeentransferred,theGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialassetbuthasnotretainedcontrolofthefinancialasset.IftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofafinancialasset,anditretainscontrolofthefinancialasset,theGroupwillrecognizethefinancialassettotheextentofitscontinuinginvolvementinthetransferredfinancialassetandrecognizeanassociatedliability.TheGroupwillmeasurerelevantliabilitiesasfollows:
?Fortransferredfinancialassetscarriedatamortizedcost,thecarryingamountofrelevantliabilitiesisthecarryingamountoffinancialassetstransferredwithcontinuinginvolvementlessamortizedcostoftheGroup'sretainedrights(iftheGroupretainsrelevantrightsupontransferoffinancialassets)withadditionofamortizedcostofobligationsassumedbytheGroup(iftheGroupassumesrelevantobligationsupontransferoffinancialassets).Relevantliabilitiesarenotdesignatedasfinancialliabilitiesatfairvaluethroughprofitorloss.?Fortransferredfinancialassetscarriedatfairvalue,thecarryingamountofrelevantfinancialliabilitiesisthe
carryingamountoffinancialassetstransferredwithcontinuinginvolvementlessfairvalueoftheGroup'sretainedrights(iftheGroupretainsrelevantrightsupontransferoffinancialassets)withadditionoffairvalueofobligationsassumedbytheGroup(iftheGroupassumesrelevantobligationsupontransferoffinancialassets).Accordingly,thefairvalueofrelevantrightsandobligationsshallbemeasuredonanindividualbasis.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.3Transferoffinancialassets-continuedForatransferofafinancialassetinitsentiretythatsatisfiesthederecognitioncriteria,thedifferencebetween(1)thecarryingamountofthefinancialassettransferredand(2)thesumoftheconsiderationreceivedfromthetransferandaccumulatedchangesinfairvalueinitiallyrecordedinothercomprehensiveincomeisrecognizedinprofitorloss.Forthenon-tradableequityinstrumentdesignatedasfinancialassetsatFVTOCI,cumulativegainorlossthathasbeenrecognizedinothercomprehensiveincomeshouldberemovedfromothercomprehensiveincomebutberecognizedinretainedearnings.Forapartoftransferofafinancialassetthatsatisfiesthederecognitioncriteria,thecarryingamountofthetransferredfinancialassetisallocatedbetweenthepartthatisderecognizedandthepartthatiscontinuouslyinvolved,basedontherespectivefairvaluesofthosepartsontransferdate.Thedifferencebetween(1)thesumoftheconsiderationreceivedforthepartderecognizedandanycumulativegainorlossallocatedtothepartderecognizedwhichhasbeenpreviouslyrecognizedinothercomprehensiveincome;and(2)thecarryingamountallocatedtothepartderecognizedonderecognitiondate;isrecognizedinprofitorloss.Forthenon-tradableequityinstrumentdesignatedasfinancialassetsatFVTOCI,cumulativegainorlossthathasbeenrecognizedinothercomprehensiveincomeshouldberemovedfromothercomprehensiveincomebutberecognizedinretainedearnings.Foratransferofafinancialassetinitsentiretythatdoesnotsatisfythederecognitioncriteria,theGroupwillcontinuouslyrecognizethetransferredfinancialassetinitsentirety.Considerationsreceivedduetotransferofassetsshouldberecognizedasaliabilityuponreceipts.
10.4ClassificationoffinancialliabilitiesandequityinstrumentsFinancialinstrumentsissuedbytheGroupareclassifiedintofinancialliabilitiesorequityinstrumentsonthebasisofthesubstanceofthecontractualarrangementsandtheeconomicnaturenotonlyitslegalform,togetherwiththedefinitionoffinancialliabilityandequityinstrumentsoninitialrecognition.
10.4.1Classification,recognitionandmeasurementoffinancialliabilitiesOninitialrecognition,financialliabilitiesareclassifiedintofinancialliabilitiesatFVTPLandotherfinancialliabilities.
10.4.1.1FinancialliabilitiesatFVTPLFinancialliabilitiesatFVTPLconsistoffinancialliabilitiesheldfortrading(includingderivativesclassifiedasfinancialliabilities)andthosedesignatedasatFVTPL.Exceptforderivativefinancialliabilitiespresentedseparately,thefinancialliabilitiesatFVTPLarepresentedasheld-for-tradingfinancialliabilities.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.4Classificationoffinancialliabilitiesandequityinstruments-continued
10.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued
10.4.1.1FinancialliabilitiesatFVTPL-continuedAfinancialliabilityisclassifiedasheldfortradingifoneofthefollowingconditionsissatisfied:
?Ithasbeenacquiredprincipallyforthepurposeofrepurchasinginthenearterm;or?OninitialrecognitionitispartofaportfolioofidentifiedfinancialinstrumentsthattheGroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-termprofit-taking;or?Itisaderivativethatisnotafinancialguaranteecontractordesignatedandeffectiveasa
hedginginstrument.AfinancialliabilitymaybedesignatedasatFVTPLoninitialrecognitionwhenoneofthefollowingconditionsissatisfied:(i)Suchdesignationeliminatesorsignificantlyreducesaccountingmismatch;or(ii)TheGroupmakesmanagementandperformanceevaluationonafairvaluebasis,inaccordancewiththeGroup'sformallydocumentedriskmanagementorinvestmentstrategy,andreportstokeymanagementpersonnelonthatbasis.(iii)Thequalifiedhybridfinancialinstrumentcombinesfinancialassetwithembeddedderivatives.Transactionfinancialliabilitiesaresubsequentlymeasuredatfairvalue.Anygainsorlossesarisingfromchangesinthefairvalueandanydividendorinterestexpensespaidonthefinancialliabilitiesarerecognizedinprofitorloss.Theamountofchangeinthefairvalueofthefinancialliabilitythatisattributabletochangesinthecreditriskofthatliabilityshallbepresentedinothercomprehensiveincome,otherchangesinfairvaluesareincludedinprofitorlossforthecurrentperiod.Uponthederecognitionofsuchliability,theaccumulatedamountofchangeinfairvaluethatisattributabletochangesinthecreditriskofthatliability,whichisrecognizedinothercomprehensiveincome,istransferredtoretainedearnings.Anydividendorinterestincomeearnedonthefinancialliabilitiesarerecognizedinprofitorloss.Iftheimpactofthechangeincreditriskofsuchfinancialliabilitydealtwithintheabovewaywouldcreateorenlargeanaccountingmismatchinprofitorloss,theGroupshallpresentallgainsorlossesonthatliability(includingtheeffectsofchangesinthecreditriskofthatliability)inprofitorloss.FinancialliabilitiesaremeasuredatFVTPLwhenthefinancialliabilitiesisarisingfromcontingentconsiderationrecognizedbytheGroupasanacquirerinabusinesscombinationnotinvolvingenterprisesundercommoncontrol.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.4Classificationoffinancialliabilitiesandequityinstruments-continued
10.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued
10.4.1.2OtherfinancialliabilitiesExceptforfinancialliabilities,financialguaranteecontractsandloancommitmentsarisingfromtransferoffinancialassetsthatdonotmeetthederecognitioncriteriaorthosearisingfromcontinuinginvolvementinthetransferredfinancialassets,otherfinancialliabilitiesaresubsequentlymeasuredatamortizedcost,withgainorlossarisingfromderecognitionoramortizationrecognizedinprofitorloss.ThattheGroupanditscounterpartymodifyorrenegotiatethecontractdoesnotresultinderecognitionofafinancialliabilitysubsequentlymeasuredatamortizedcostbutresultinchangesincontractualcashflows,theGroupwillrecalculatethecarryingamountofthefinancialliability,withrelevantgainorlossrecognizedinprofitorloss.TheGroupwilldeterminecarryingamountofthefinancialliabilitybasedonthepresentvalueofrenegotiatedormodifiedcontractualcashflowsdiscountedatthefinancialliability'soriginaleffectiveinterestrate.Forallcostsorexpensesarisingfrommodificationorrenegotiationofthecontract,theGroupwilladjustthemodifiedcarryingamountofthefinancialliabilityandmakeamortizationduringtheremainingtermofthemodifiedfinancialliability.
10.4.1.3FinancialguaranteecontractsandloancommitmentsAfinancialguaranteecontractisacontractthatrequirestheissuertomakespecifiedpaymentstoreimbursetheholderofthecontractforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.Subsequenttoinitialrecognition,financialguaranteecontractsthatarenotdesignatedasfinancialliabilitiesatfairvaluethroughprofitorlossorfinancialliabilitiesarisingfromtransferoffinancialassetsthatdonotmeetthederecognitioncriteriaorthosearisingfromcontinuinginvolvementinthetransferredfinancialassets,andloancommitmentstoprovidealoanatabelow-marketinterestrate,whicharenotdesignatedatfairvaluethroughprofitorloss,aremeasuredatthehigherof:(1)amountoflossprovision;and(2)theamountinitiallyrecognizedlesscumulativeamortizationamountdeterminedbasedontherevenuestandard.
10.4.2DerecognitionoffinancialliabilitiesTheGroupderecognizesafinancialliability(orpartofit)whentheunderlyingpresentobligation(orpartofit)isdischarged.AnagreementbetweentheGroup(thedebtor)andthecreditortoreplacetheoriginalfinancialliabilitywithanewfinancialliabilitywithsubstantiallydifferenttermsisaccountedforasanextinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.4Classificationoffinancialliabilitiesandequityinstruments-continued
10.4.2Derecognitionoffinancialliabilities-continuedWhentheGroupderecognizesafinancialliabilityorapartofit,itrecognizesthedifferencebetweenthecarryingamountofthefinancialliability(orpartofthefinancialliability)derecognizedandtheconsiderationpaid(includinganynon-cashassetstransferredornewfinancialliabilitiesassumed)inprofitorloss.
10.4.3EquityinstrumentsAnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheGroupafterdeductingallofitsliabilities.Equityinstrumentsissued(includingrefinanced),repurchased,soldandcancelledbytheGrouparerecognizedaschangesofequity.ChangesoffairvalueofequityinstrumentsisnotrecognizedbytheGroup.Transactioncostsrelatedtoequitytransactionsaredeductedfromequity.TheGrouprecognizesthedistributiontoholdersoftheequityinstrumentsasdistributionofprofits,dividendspaiddonotaffecttotalamountofshareholders'equity.
10.5DerivativesandembeddedderivativesDerivativesincludeforwardexchangecontracts,currencyswaps,interestrateswapsandforeignexchangeoptions,etc.Derivativesareinitiallymeasuredatfairvalueatthedatewhenthederivativecontractsareenteredintoandaresubsequentlyre-measuredatfairvalue.DerivativesembeddedinhybridcontractswithafinancialassethostarenotseparatedbytheGroup.Thehybridcontractshallapplytotherelevantaccountingstandardsregardingtheclassificationoffinancialassetsasawhole.DerivativesembeddedinhybridcontractswithhoststhatarenotfinancialassetsareseparatedandtreatedasseparatederivativesbytheGroupwhentheymeetthefollowingconditions:
(1)theeconomiccharacteristicsandrisksoftheembeddedderivativearenotcloselyrelatedtothoseofthehost
contract;
(2)aseparateinstrumentwiththesametermsastheembeddedderivativewouldmeetthedefinitionofa
derivative.
(3)thehybridcontractsarenotmeasuredatfairvaluethroughprofitorloss.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.5Derivativesandembeddedderivatives-continuedFortheembeddedderivativeseparatedfromthehostcontracts,theGroupaccountsforthehostcontractsinthehybridcontractswithapplicableaccountingstandards.WhentheembeddedderivativeswhosefairvaluecannotbemeasuredreliablybytheGroupaccordingtothetermsandconditionsoftheembeddedderivatives,thefairvalueofsuchderivativesaremeasuredatthedifferencebetweenthefairvalueofthehybridcontractsandthefairvalueofthehostcontracts.Byadoptingtheabovemethod,iftheembeddedderivativecannotbemeasuredonastand-alonebasisatthetimewhenacquiredoratsubsequentbalancesheetdates,thehybridinstrumentisdesignatedasfinancialinstrumentsatfairvaluethroughprofitorlossasawhole.
10.6OffsettingfinancialassetsandfinancialliabilitiesWheretheGrouphasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
10.7ReclassificationoffinancialinstrumentsWhentheGroupchangesthebusinessmodeltomanagethefinancialassets,thefinancialassetsaffectedwillbereclassifiedandnofinancialliabilitieswillbereclassified.ThefinancialassetsarereclassifiedbytheGroupandareaccountedforprospectivelysincethedateofreclassification(i.e.thefirstdateoftheinitialreportingperiodafterthebusinessmodelofwhichthefinancialassetsarereclassifiedbytheenterpriseischanged).Whereafinancialassetatamortisedcostisreclassifiedasafinancialassetsatfairvaluethroughprofitorloss("FVTPL")bytheGroup,suchfinancialassetismeasuredatfairvalueatthedateofreclassificationandthedifferencebetweentheoriginalcarryingamountandthefairvalueisrecognizedinprofitorlossfortheperiod.Whereafinancialassetatamortisedcostisreclassifiedasafinancialassetatfairvaluethroughothercomprehensiveincome("FVTOCI")bytheGroup,suchfinancialassetismeasuredatthefairvalueatthedateofreclassification,andthedifferencebetweentheoriginalamountandthefairvalueisrecognizedinothercomprehensiveincome.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.7Reclassificationoffinancialinstruments-continuedWhereafinancialassetatFVTOCIisreclassifiedasafinancialassetatamortisedcostbytheGroup,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredoutandthefairvalueisadjustedasthefairvalueatthedateofreclassification.Theadjustedfairvalueisrecognizedasthenewcarryingamount,asifthefinancialassethadbeenmeasuredatamortisedcost.WhereafinancialassetatFVTOCIisreclassifiedasafinancialassetatFVTPLbytheGroup,suchfinancialassetcontinuestobeaccountedforatfairvalue.Atthesametime,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredtoprofitorlossfortheperiod.WhereafinancialassetatFVTPLisreclassifiedasafinancialassetatamortisedcostbytheGroup,thefairvalueatthedateofreclassificationisrecognizedasthenewaccountbalance.WhereafinancialassetatFVTPLisreclassifiedasafinancialassetatFVTOCIbytheGroup,suchfinancialassetcontinuestobemeasuredatfairvalue.WhereafinancialassetatFVTPLisreclassified,theeffectiveinterestrateisdeterminedonthebasisofthefairvalueofthefinancialassetatthedateofreclassification.
11.AccountsreceivableTheGroupmakesinternalcreditratingsoncustomersanddeterminesexpectedlossesrateofnotesreceivable,accountsreceivableandotherreceivables.Basisfordeterminingratingsandtheexpectedlossesratesareasfollows:
| Internalcreditrating | Basisfordeterminingportfolio | Averageexpectedlossrate(%) |
| A | Customerscanmakerepaymentswithincredittermandhavegoodcreditrecordsbasedonhistoricalexperience.Theprobabilityofdefaultonpaymentofdueamountsisextremelylowintheforeseeablefuture. | 0.00-0.10 |
| B | Thecustomermayhaveoverduepaymentbasedonhistoricalexperiencebuttheycanmakerepayments. | 0.10-0.30 |
| C | Theevidencesindicatethattheoverduecreditrisksofthecustomeraresignificantlyincreasedandthereisprobabilityofdefaultonpayment. | 0.30-50.00 |
| D | Theevidencesindicatethattheaccountsreceivableareimpairedorthecustomerhassignificantfinancialdifficulty.Theamountscannotberecoveredintheforeseeablefuture. | 50.00-100.00 |
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
12.ReceivablesfinancingNotesreceivableclassifiedtohedginginstrumentsforthepurposeofhedging,shouldbelistedasreceivablesfinancingwithinoneyear(includingoneyear).Ifthetermaboveoneyear,itshouldbelistedasotherinvestmentonbonds.RelatedaccountingpoliciesrefertoNoteIII,10.
13.Inventories
13.1CategoriesofinventoriesInventoriesincluderawmaterials,merchandiseandothers.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpendituresincurredinbringingtheinventoriestotheirpresentlocationandcondition.
13.2ValuationmethodofinventoriesupondeliveryTheactualcostofinventoriesupondeliveryiscalculatedusingtheweightedaveragemethod.
13.3Basisfordeterminingnetrealizablevalueofinventoriesandprovisionmethodsfordeclineinvalueof
inventoriesAtthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Ifthecostofinventoriesishigherthanthenetrealizablevalue,aprovisionfordeclineinvalueofinventoriesismade.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Netrealizablevalueisdeterminedonthebasisofclearevidenceobtained,aftertakingintoconsiderationthepurposesofinventoriesbeingheldandeffectofpostbalancesheetevents.Provisionfordeclineinvalueofotherinventoriesismadebasedontheexcessofcostofinventoryoveritsnetrealizablevalueonanitem-by-itembasis.Aftertheprovisionfordeclineinvalueofinventoriesismade,ifthecircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistsothatthenetrealizablevalueofinventoriesishigherthantheircost,theoriginalprovisionfordeclineinvalueisreversedandthereversalisincludedinprofitorlossfortheperiod.
13.4InventorycountsystemTheperpetualinventorysystemismaintainedforstocksystem.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
13.Inventories-continued
13.5Amortizationmethodsforlowcostandshort-livedconsumableitemsandpackagingmaterialsPackagingmaterialsandlowcostandshort-livedconsumableitemsareamortizedusingtheimmediatewrite-offmethod.
14.Contractassets
14.1RecognitionandcriteriaofcontractassetsAcontractassetrepresentstheGroup'srighttoconsiderationinexchangeforgoodsorservicesthattheGrouphastransferredtoacustomer,andsuchrightdependsonfactorsotherthanthepassageoftime.TheGroup'sunconditionalright(onlythepassageoftimeisrequired)toconsiderationfromthecustomerisseparatelypresentedas"accountsreceivable".
14.2Determinationandaccountingtreatmentsofexpectedcreditlosses("ECL")forcontractassetsRefertoNoteIII,10.2"Impairmentoffinancialinstruments"fordeterminationandaccountingtreatmentsofexpectedcreditlossesforcontractassets.
15.AssetsheldforsaleWhentheGroupwithdrawthebookvalueofcertainassetsordisposalgroupmainlythroughdisposalinsteadofcontinualapplication,theassetsshouldbeclassifiedasheld-for-saleassets.Assetsordisposalgroupclassifiedasheld-for-saleassetsshouldmeatfollowingconditions:(1)Thecurrentstatusisavailableforimmediatedistributionaccordingtosimilartransactionsofthiscategoryofassetsordisposalgroup;(2)Thetransactionislikelytooccur,i.e.theGrouphasmadeitsresolutionoverthedistributionarrangementsandacquiredpurchasecommitment.Alsothedistributionisgoingtobefulfilledwithinayear.Iftheholdingcompanylosescontrolofitssubsidiaryforreasonslikesubsidiarydisposal,inregardlessofwhethertheholdingcompanystillkeepspartofequityinvestment,oncetheproposedinvestmentdisposalmeetstherequirementsofbeingclassifiedasavailableforsaleassetsintheholdingcompany'sindividualstatement,allassetsandliabilitiesofthesubsidiaryshouldbeclassifiedasheld-for-saleinconsolidatedfinancialstatement.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
15.Assetsheldforsale-continuedThegroup'snon-currentassetsanddisposalgrouparemeasuredatthelowerofbookvalueandthenetvalueoffairvaluelesscoststosell.Oncethebookvalueishigherthanthenetvalueoffairvaluelesscoststosell,thebookvalueshouldbeadjustedtothenetvalueandtheexcessshouldberecognizedasimpairmentlossesandprovisionforheld-for-saleassetsimpairmentshouldbemade.Againandareverseinthepreviousprovisionforheld-for-saleassetsimpairmentcanberecognizedforanyincreaseinfairvaluelesscoststosellatsubsequentbalancesheetdates,totheextentthatitisnotinexcessofthecumulativeimpairmentlossthathasbeenrecognized.Assetimpairmentlossesrecognizedbeforesuchassetsareclassifiedasheldforsalewillnotbereversed.Non-currentheld-for-saleassetsisnotsubjecttodepreciationandamortization.Thecreditorinterestandotherexpensesofdisposalgroupclassifiedasheld-for-saleassetshouldstillberecognized.Oncetheassociateorjointventureequityinvestmentiscompletelyorpartlyclassifiedasheld-for-saleassets,theclassifiedpartoftheinvestmentisnotsubjecttoequitymethodmeasurement.Ifanassetoradisposalgrouphasbeenclassifiedasheldforsalebuttherecognitioncriteriafornon-currentassetsheldforsalearenolongermet,theGroupshallceasetoclassifytheassetordisposalgroupasheldforsale.Itshallbemeasuredatthelowerof(1)thecarryingamountbeforetheassetordisposalgroupwasclassifiedasheldforsale,adjustedforanydepreciation,amortisationorimpairmentthatwouldhavebeenrecognisedhadtheassetordisposalgroupnotbeenclassifiedasheldforsale;and(2)therecoverableamountatthedateofthedecisionnottosell.Forequityinvestmentsinassociatesorjointventuresthatareclassifiedasheldforsalebuttherecognitionfornon-currentassetsheldforsalearenolongermet,suchinvestmentsareaccountedforretrospectivelyusingtheequitymethodfromthedatewhentheyclassifiedasheldforsale.Thefinancialstatementsfortheheld-for-saleperiodareadjustedaccordingly.
16.Long-termequityinvestments
16.1BasisfordeterminingjointcontrolandsignificantinfluenceoverinvesteeControlisarchivedwhentheGrouphasthepowerovertheinvesteeandhasrightstovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytouseitspowertoaffectitsreturns.Jointcontrolisthecontractuallyagreedsharingofcontroloveraneconomicactivity,andexistsonlywhenthestrategicfinancialandoperatingpolicydecisionsrelatingtotheactivityrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontroloverthosepolicies.Whendeterminingwhetheraninvestingenterpriseisabletoexercisecontrolorsignificantinfluenceoveraninvestee,theeffectofpotentialvotingrightsoftheinvestee(forexample,warrantsandconvertibledebts)heldbytheinvestingenterprisesorotherpartiesthatarecurrentlyexercisableorconvertibleshallbeconsidered.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
16.Long-termequityinvestments-continued
16.2DeterminationofinitialinvestmentcostForalong-termequityinvestmentacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,theinvestmentcostofthelong-termequityinvestmentistheattributableshareofthecarryingamountoftheshareholders'equityoftheacquireeatthedateofcombination.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountofcashpaid,non-cashassetstransferredandliabilitiesassumedshallbeadjustedtocapitalreserve.Ifthebalanceofcapitalreserveisnotsufficient,anyexcessshallbeadjustedtoretainedearnings.Iftheconsiderationofthecombinationissatisfiedbytheissueofequitysecurities,theinitialinvestmentcostofthelong-termequityinvestmentshallbetheshareofpartybeingabsorbedoftheowners'equityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthedateofcombination.Theaggregatefacevalueofthesharesissuedshallbeaccountedforassharecapital.Thedifferencebetweentheinitialinvestmentcostandtheaggregatefacevalueofthesharesissuedshallbeadjustedtocapitalreserve.Ifthebalanceofcapitalreserveisnotsufficient,anyexcessshallbeadjustedtoretainedearnings.Whereequityinterestsinanacquireeareacquiredinstagesthroughmultipletransactionsultimatelyconstitutingabusinesscombinationinvolvingentitiesundercommoncontrol,theacquirershalldetermineifthesetransactionsareconsideredtobea"packagedeal".Ifyes,thesetransactionsareaccountedforasasingletransactionwherecontrolisobtained.Ifno,theinitialinvestmentcostofthelong-termequityinvestmentistheshareofbookvalueofowners'equityoftheacquiredentityintheultimatecontrollingparty'sconsolidatedfinancialstatementsatthedateofcombination.Thedifferencebetweentheinitialinvestmentcostandthesumofcarryingamountofequityinvestmentspreviouslyheldintheacquireeandthenewinvestmentcostisadjustedtocapitalreserve.Ifthebalanceofcapitalreserveisnotsufficienttoabsorbthedifference,anyexcessisadjustedtoretainedearnings.Othercomprehensiveincomerecognizedforthepreviouslyheldequityinvestmentsbyaccountingtreatmentofequitymethodoravailable-for-salefinancialassetsisnotsubjecttoaccountingtreatmenttemporarily.Foralong-termequityinvestmentacquiredthroughbusinesscombinationnotinvolvingenterprisesundercommoncontrol,theinvestmentcostofthelong-termequityinvestmentacquiredisthecostofacquisition.Theabsorbingparty'sorpurchaser'sintermediaryexpenses(feesinrespectofauditing,legalservices,valuationandconsultancyservices,etc.)andotheradministrativeexpensesattributabletothebusinesscombinationarerecognizedinprofitorlossintheperiodswhentheyareincurred.Thelong-termequityinvestmentacquiredotherwisethanthroughabusinesscombinationisinitiallymeasuredatitscost.Whentheentityisabletoexercisesignificantinfluenceorjointcontrol(butnotcontrol)overaninvesteeduetoadditionalinvestment,thecostoflong-termequityinvestmentsisthesumofthefairvalueofpreviously-heldequityinvestmentsdeterminedinaccordancewithAccountingStandardforBusinessEnterprisesNo.22-FinancialInstruments:RecognitionandMeasurement(ASBENo.22)andtheadditionalinvestmentcost.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
16.Long-termequityinvestments-continued
16.3Subsequentmeasurementandrecognitionofprofitorloss
16.3.1Long-termequityinvestmentsaccountedforusingthecostmethodLong-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodintheCompany'sseparatefinancialstatements.AsubsidiaryisaninvesteethatiscontrolledbytheGroup.Underthecostmethod,along-termequityinvestmentismeasuredatinitialinvestmentcost.Additionalorwithdrawinginvestmentwouldaffectthecostoflong-termequityinvestment.Investmentincomeisrecognizedintheperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestee.
16.3.2Long-termequityinvestmentsaccountedforusingtheequitymethodExceptassociateandjointventureinvestmentcompletelyorpartlyclassifiedasavailableforsale,andTheGroupaccountsforinvestmentinassociatesandjointventuresusingtheequitymethod.AnassociateisanentityoverwhichtheGrouphassignificantinfluenceandajointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthejointarrangement.Undertheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,noadjustmentismadetotheinitialinvestmentcost.WheretheinitialinvestmentcostislessthantheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,thedifferenceisrecognizedinprofitorlossfortheperiod,andthecostofthelong-termequityinvestmentisadjustedaccordingly.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
16.Long-termequityinvestments-continued
16.3Subsequentmeasurementandrecognitionofprofitorloss-continued
16.3.2Long-termequityinvestmentsaccountedforusingtheequitymethod-continuedUndertheequitymethod,theGrouprecognizesitsshareoftheothercomprehensiveincomeandnetprofitorlossoftheinvesteefortheperiodasothercomprehensiveincomeandinvestmentincomeorlossrespectivelyfortheperiod,andthecarryingamountofthelong-termequityinvestmentisadjustedaccordingly.Thecarryingamountoftheinvestmentshallbereducedbytheportionofanyprofitdistributionsorcashdividendsdeclaredbytheinvesteethatisdistributedtotheinvestingenterprise.Theinvestingenterpriseshalladjustthecarryingamountofthelong-termequityinvestmentforotherchangesinowners'equityoftheinvestee(otherthannetprofitsorlosses,othercomprehensiveincomeandprofitdistribution),andincludethecorrespondingadjustmentincapitalreserve.TheGrouprecognizesitsshareoftheinvestee'snetprofitorlossbasedonthefairvalueoftheinvestee'sindividuallyidentifiableassetsattheacquisitiondateaftermakingappropriateadjustments.Wheretheaccountingpoliciesandaccountingperiodadoptedbytheinvesteearedifferentfromthoseoftheinvestingenterprise,theinvestingenterpriseshalladjustthefinancialstatementsoftheinvesteetoconformtoitsownaccountingpoliciesandaccountingperiod,andrecognizeothercomprehensiveincomeandinvestmentincomeorlossesbasedontheadjustedfinancialstatements.UnrealizedprofitsorlossesresultingfromtheGroup'stransactionsandassetsinvestedorsoldthatarenotrecognizedasbusinesstransactionswithitsassociatesandjointventuresarerecognizedasinvestmentincomeorlosstotheextentthatthoseattributabletotheGroup's,equityinterestareeliminated.However,unrealizedlossesresultingfromtheGroup'stransactionswithitsassociatesandjointventureswhichrepresentimpairmentlossesonthetransferredassetsarenoteliminated.TheGroupdiscontinuesrecognizingitsshareofnetlossesoftheinvesteeafterthecarryingamountofthelong-termequityinvestmenttogetherwithanylong-termintereststhatinsubstanceformpartofitsnetinvestmentintheinvesteearereducedtozero.ExceptthatiftheGrouphasincurredobligationstoassumeadditionallosses,aprovisionisrecognizedaccordingtotheobligationexpected,andrecordedintheinvestmentlossfortheperiod.Wherenetprofitsaresubsequentlymadebytheinvestee,theGroupresumesrecognizingitsshareofthoseprofitsonlyafteritsshareoftheprofitsexceedstheshareoflossespreviouslynotrecognized.
16.4Disposaloflong-termequityinvestmentsOndisposalofalong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandreceivableandthecarryingamountisrecognizedinprofitorlossfortheperiod.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,iftheremaininginterestafterdisposalisstillaccountedforusingtheequitymethod,othercomprehensiveincomepreviouslyrecognizedforusingtheequitymethodisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;owners'equityrecognizedduetochangesinotherowners'equityoftheinvestee(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
16.Long-termequityinvestments-continued
16.4Disposaloflong-termequityinvestments-continuedForlong-termequityinvestmentsaccountedforusingthecostmethod,iftheremaininginterestafterdisposalisstillaccountedforusingthecostmethod,othercomprehensiveincomepreviouslyrecognizedforusingtheequitymethodorinaccordancewiththestandardsfortherecognitionandmeasurementoffinancialinstrumentsbeforeobtainingthecontrolovertheinvestee,isaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;changesinotherowners'equityintheinvestee'snetassetsrecognizedundertheequitymethod(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.
17.InvestmentpropertiesInvestmentpropertyispropertyheldtoearnrentalsorforcapitalappreciationorboth.Itincludesalanduserightthatisleasedout;alanduserightheldfortransferuponcapitalappreciation;andabuildingthatisleasedout.Aninvestmentpropertyismeasuredinitiallyatcost.SubsequentexpendituresincurredforsuchinvestmentpropertyareincludedinthecostoftheinvestmentpropertyifitisprobablethateconomicbenefitsassociatedwithaninvestmentpropertywillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably,othersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.TheGroupusesthecostmodelforsubsequentmeasurementofinvestmentproperty,andadoptsadepreciationoramortizationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduserights.Aninvestmentpropertyisderecognizedupondisposalorwhentheinvestmentpropertyispermanentlywithdrawfromuseandnofutureeconomicbenefitsareexpectedfromthedisposal.Whenaninvestmentpropertyissold,transferred,retiredordamaged,theGrouprecognizestheamountofanyproceedsondisposalnetofthecarryingamountandrelatedtaxesinprofitorlossfortheperiod.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
18.Fixedassets
18.1RecognitioncriteriaforfixedassetsFixedassetsaretangibleassetsthatareheldforuseintheproductionorsupplyofgoodsorservices,forrentaltoothers,orforadministrativepurposes,andhaveusefullivesofmorethanoneaccountingyear.AfixedassetisrecognizedonlywhenitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthecostoftheassetcanbemeasuredreliably.Fixedassetsareinitiallymeasuredatcost.Uponbeingrestructuredintoastockcompany,thefixedassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.SubsequentexpendituresincurredforthefixedassetareincludedinthecostofthefixedassetandifitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably.Meanwhilethecarryingamountofthereplacedpartisderecognized.Othersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.
18.2DepreciationmethodAfixedassetisdepreciatedoveritsusefullifeusingthestraight-linemethodstartingfromthemonthsubsequenttotheoneinwhichitisreadyforintendeduse.Theusefullife,estimatednetresidualvaluerateandannualdepreciationrateofeachcategoryoffixedassetsareasfollows:
| Category | Estimatedusefullives | Estimatedresidualvalue(%) | Annualdepreciationrate(%) |
| Portandterminalfacilities | 5-50years | 5.00 | 1.90-19.00 |
| Buildingsandstructures | 10-50years | 5.00 | 1.90-9.50 |
| Machineryandequipment,furnitureandfixtureandotherequipment | 3-20years | 5.00 | 4.75-31.67 |
| Motorvehiclesandcargoships | 5-25years | 5.00 | 3.80-19.00 |
EstimatednetresidualvalueofafixedassetistheestimatedamountthattheGroupwouldcurrentlyobtainfromdisposaloftheasset,afterdeductingtheestimatedcostsofdisposal,iftheassetwerealreadyoftheageandintheconditionexpectedattheendofitsusefullife.
18.3OtherexplanationsIfafixedassetisupondisposalornofutureeconomicbenefitsareexpectedtobegeneratedfromitsuseordisposal,thefixedassetisderecognized.Whenafixedassetissold,transferred,retiredordamaged,theamountofanyproceedsondisposaloftheassetnetofthecarryingamountandrelatedtaxesisrecognizedinprofitorlossfortheperiod.TheGroupreviewstheusefullifeandestimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastonceateachfinancialyear-end,andaccountforanychangeasachangeinanaccountingestimate.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
19.ConstructioninprogressConstructioninprogressismeasuredatitsactualcosts.Theactualcostsincludevariousconstructionexpendituresduringtheconstructionperiod,borrowingcostscapitalizedbeforeitisreadyforintendeduseandotherrelevantcosts.Constructioninprogressisnotdepreciated.Constructioninprogressistransferredtoafixedassetwhenitisreadyforintendeduse.
20.BorrowingcostsBorrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassetarecapitalizedwhenexpendituresforsuchassetandborrowingcostsareincurredandactivitiesrelatingtotheacquisition,constructionorproductionoftheassetthatarenecessarytopreparetheassetforitsintendeduseorsalehavecommenced.Capitalizationofborrowingcostsceaseswhenthequalifyingassetbeingacquired,constructedorproducedbecomesreadyforitsintendeduseorsale.Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetisinterruptedabnormallyandwhentheinterruptionisforacontinuousperiodofmorethan3months.Capitalizationissuspendeduntiltheacquisition,constructionorproductionoftheassetisresumed.Otherborrowingcostsarerecognizedasanexpenseintheperiodinwhichtheyareincurred.Wherefundsareborrowedunderaspecific-purposeborrowing,theamountofinteresttobecapitalizedistheactualinterestexpenseincurredonthatborrowingfortheperiodlessanybankinterestearnedfromdepositingtheborrowedfundsbeforebeingusedontheassetoranyinvestmentincomeonthetemporaryinvestmentofthosefunds.Wherefundsareborrowedundergeneral-purposeborrowings,theGroupdeterminestheamountofinteresttobecapitalizedonsuchborrowingsbyapplyingacapitalizationratetotheweightedaverageoftheexcessofcumulativeexpendituresontheassetovertheamountsofspecific-purposeborrowings.Thecapitalizationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Duringthecapitalizationperiod,exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencyareallcapitalized.Exchangedifferencesinconnectionwithgeneral-purposeborrowingsarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.
21.Intangibleassets
21.1ValuationmethodandusefullifeofintangibleassetsAnintangibleassetismeasuredinitiallyatcost.Uponbeingrestructuredintoastockcompany,theintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Exceptforportoperationrights,whenanintangibleassetwithafiniteusefullifeisavailableforuse,itsoriginalcostisamortizedoveritsestimatedusefullifeTheterminaloperatingrightsareamortizedusingtheoutputmethod,thatis,amortizedthroughperiodsaccordingtotheratiooftheestimatedminimumguaranteedthroughputtotheestimatedminimumguaranteedtotalthroughputduringtheoperationperiod.Whentheestimatedminimumguaranteedthroughputcannotbemeasuredreliably,thestraight-linemethodwillbeusedforamortization.Anintangibleassetwithuncertainusefullifewillnotbeamortized.Theamortizationmethod,usefullifeandestimatednetresidualvalueofvariousintangibleassetsareasfollows:
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
21.Intangibleassets-continued
21.1Valuationmethodandusefullifeofintangibleassets-continued
| Category | AmortizationMethod | UsefulLife(year) | Residualvalue(%) |
| Landuserights | Straight-linemethod | 40-50 | - |
| Terminaloperatingright | Output/Straight-linemethod | 30-35 | - |
| Others | Straight-linemethod | 5-50 | - |
Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortizationmethodattheendoftheyear,andmakesadjustmentswhennecessary.
21.2InternalresearchanddevelopmentexpenditureExpenditureduringtheresearchphaseisrecognisedasanexpenseintheperiodinwhichitisincurred.Expenditureduringthedevelopmentphasethatmeetsallofthefollowingconditionsatthesametimeisrecognisedasintangibleasset.Expenditureduringdevelopmentphasethatdoesnotmeetthefollowingconditionsisrecognisedinprofitorlossfortheperiod.
(1)itistechnicallyfeasibletocompletetheintangibleassetsothatitwillbeavailableforuseorsale;
(2)theGrouphastheintentiontocompletetheintangibleassetanduseorsellit;
(3)theGroupcandemonstratethewaysinwhichtheintangibleassetwillgenerateeconomicbenefits,including
theevidenceoftheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset;
(4)theavailabilityofadequatetechnical,financialandotherresourcestocompletethedevelopmentandthe
abilitytouseorselltheintangibleasset;and
(5)theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbereliablymeasured.Iftheexpenditurescannotbedistinguishedbetweentheresearchphaseanddevelopmentphase,theGrouprecognisesalloftheminprofitorlossfortheperiod.Thecostsofintangibleassetsgeneratedbytheinternalresearchonlyincludethetotalexpenditureincurredfortheperiodfromthetimepointofcapitalizationtotheintangibleassetsarereadyforintendeduse.Fortheidenticalintangibleasset,theexpendituresrecordedasexpensesbeforetheyqualifyforcapitalizationduringthedevelopmentprocessarenotadjusted.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
22.Impairmentoflong-termassetsTheGroupassessesatthebalancesheetdatewhetherthereisanyindicationthatthelong-termequityinvestments,investmentpropertiesmeasuredatcostmethod,constructioninprogress,fixedassets,right-of-useassetsandintangibleassetswithafiniteusefullifemaybeimpaired.Ifthereisanyindicationthatsuchassetsmaybeimpaired,recoverableamountsareestimatedforsuchassets.Intangibleassetswithindefiniteusefullifeandintangibleassetsnotyetavailableforusearetestedforimpairmentannually,irrespectiveofwhetherthereisanyindicationthattheassetsmaybeimpaired.Recoverableamountisestimatedonindividualbasis.Ifitisnotpracticaltoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheassetgrouptowhichtheassetbelongswillbeestimated.Therecoverableamountofanassetisthehigherofitsfairvaluelesscostsofdisposalandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.Iftherecoverableamountofanassetoranassetgroupislessthanitscarryingamount,thedeficitisaccountedforasanimpairmentlossandisrecognizedinprofitorloss.Goodwillistestedforimpairmentatleastattheendofeachyear.Forthepurposeofimpairmenttesting,goodwillisconsideredtogetherwiththerelatedassetsgroups,i.e.,goodwillisreasonablyallocatedtotherelatedassetsgroupsoreachofassetsgroupsexpectedtobenefitfromthesynergiesofthecombination.Intestinganassetsgroupwithgoodwillforimpairment,animpairmentlossisrecognizediftherecoverableamountoftheassetsgrouporsetsofassetsgroups(includinggoodwill)islessthanitscarryingamount.Theimpairmentlossisfirstlyallocatedtoreducethecarryingamountofanygoodwillallocatedtosuchassetsgrouporsetsofassetsgroups,andthentotheotherassetsofthegrouppro-ratabasisonthebasisofthecarryingamountofeachasset(otherthangoodwill)inthegroup.Oncetheimpairmentlossofabove-mentionedassetisrecognized,itshallnotbereversedinanysubsequentperiod.
23.Long-termprepaidexpensesLong-termprepaidexpensesrepresentexpensesincurredthatshouldbeborneandamortizedoverthecurrentandsubsequentperiods(togetherofmorethanoneyear).Long-termprepaidexpensesareamortizedusingthestraight-linemethodovertheexpectedperiodsinwhichbenefitsarederived.
24.ContractliabilitiesAcontractliabilityrepresentstheGroup’sobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsideration(oranamountofconsiderationisdue)fromthecustomer.Acontractassetandacontractliabilityrelatingtothesamecontractareaccountedforandpresentedonanetbasis.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
25.Employeebenefits
25.1Accountingtreatmentofshort-termemployeebenefitsActuallyoccurredshort-termemployeebenefitsarerecognizedasliabilities,withacorrespondingchargetotheprofitorlossfortheperiodorinthecostsofrelevantassetsintheaccountingperiodinwhichemployeesprovideservicestotheGroup.StaffwelfareexpensesincurredbytheGrouparerecognizedinprofitorlossfortheperiodorthecostsofrelevantassetsbasedontheactuallyoccurredamountswhenitactuallyoccurred.Non-monetarystaffwelfareexpensesaremeasuredatfairvalue.PaymentmadebytheGroupofsocialsecuritycontributionsforemployeessuchaspremiumsorcontributionsonmedicalinsurance,workinjuryinsuranceandmaternityinsurance,etc.andpaymentsofhousingfunds,aswellasunionrunningcostsandemployeeeducationcostsprovidedinaccordancewithrelevantrequirements,arecalculatedaccordingtoprescribedbasesandpercentagesindeterminingtheamountofemployeebenefitsandrecognizedasrelevantliabilities,withacorrespondingchargetotheprofitorlossfortheperiodorthecostsofrelevantassetsintheaccountingperiodinwhichemployeesprovideservices.
25.2Accountingtreatmentofpost-employmentbenefitsPost-employmentbenefitsareclassifiedintodefinedcontributionplansanddefinedbenefitplans.DuringtheaccountingperiodofrenderingservicetoemployeesoftheGroup,amountwhichshouldbepaidaccordingtodefinedcontributionplansisrecognizedasliabilities,andrecognizedinprofitorlossorrelatedcostsofassets.Fordefinedbenefitplans,theGroupcalculatesdefinedbenefitplanobligationsusingprojectedunitcreditmethodandtheservicecostresultingfromemployeeserviceinthecurrentperiodisrecordedinprofitorlossorthecostofrelatedassets.Definedbenefitcostsarecategorizedasfollows:
?Servicecost(includingcurrentservicecost,pastservicecost,aswellasgainsandlosseson
settlements);?Netinterestofnetliabilitiesorassetsofdefinedbenefitplan(includinginterestincomeof
plannedassets,interestexpensesofdefinedbenefitplanliabilitiesandeffectofassetceiling);
and?Changesarisingfromremeasurementofnetliabilitiesornetassetsofdefinedbenefitplans.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
25.Employeebenefits-continued
25.2Accountingtreatmentofpost-employmentbenefits-continuedServicecostsandnetinterestofnetliabilitiesandnetassetsofdefinedbenefitplansarerecognizedinprofitorlossofcurrentperiodorcostsofrelatedassets.Remeasurementofthenetdefinedbenefitliability(asset)(includingactuarialgainsandlosses,thereturnonplanassets,excludingamountsincludedinnetinterestonthenetdefinedbenefitliability(asset),andanychangeintheeffectoftheassetceiling,excludingamountsincludedinnetinterestonthenetdefinedbenefitliability(asset))arerecognizedinothercomprehensiveincome.
25.3AccountingtreatmentofterminationbenefitsWhentheGroupprovidesterminationbenefitstoemployees,employeebenefitliabilitiesarerecognizedforterminationbenefits,withacorrespondingchargetotheprofitorlossfortheperiodattheearlierof:(1)whentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseoftheterminationplanoracurtailmentproposal;and(2)whentheGrouprecognizescostsorexpensesrelatedtorestructuringthatinvolvesthepaymentofterminationbenefits.
26.ProvisionsProvisionsarerecognizedwhentheGrouphasapresentobligationrelatedwithcontingencies,itisprobablethattheGroupwillberequiredtosettlethatobligationcausinganoutflowofeconomicbenefits,andareliableestimatecanbemadeoftheamountoftheobligation.Theamountrecognizedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatbalancesheetdate,takingintoaccounttherisks,uncertaintiesandtimevalueofmoneysurroundingtheobligation.Whenaprovisionismeasuredusingthecashflowsestimatedtosettlethepresentobligation,itscarryingamountisthepresentvalueofthosecashflowswheretheeffectofthetimevalueofmoneyismaterial.Whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,areceivableisrecognizedasanassetifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivableshouldnotexceedthecarryingamountofprovisions.
27.RevenueTheGroup'srevenueismainlyfromthefollowingbusinesstypes:
(1)Portservice;
(2)Bondedlogisticsservice
(3)Otherbusinesssuchaspropertydevelopmentandinvestment.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
27.Revenue-continuedTheGrouprecognizesrevenuebasedonthetransactionpriceallocatedtosuchperformanceobligationwhenaperformanceobligationissatisfied,i.e.when"control"ofthegoodsorservicesunderlyingtheparticularperformanceobligationistransferredtothecustomer.AperformanceobligationrepresentsthecommitmentthatagoodandservicethatisdistinctshallbetransferredbytheGrouptothecustomer.TransactionpricereferstotheconsiderationthattheGroupisexpectedtochargeduetothetransferofgoodsorservicestothecustomer,butitdoesnotincludepaymentsreceivedonbehalfofthirdpartiesandamountsthattheGroupexpectstoreturntothecustomer.Ifoneofthefollowingcriteriaismetanditisaperformanceobligationperformedovertime,theGrouprecognizestherevenuewithinacertainperiodoftimeaccordingtotheprogressoftheperformance:(1)thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheGroup'sperformanceastheGroupperforms;(2)thecustomerisabletocontrolthegoodsunderconstructioninthecourseoftheGroup'sperformance;(3)thegoodsproducedbytheGroupduringtheperformanceofthecontractareirreplaceableandtheGrouphastherighttochargefortheaccumulatedpartofthecontractthathasbeenperformedsofarduringthewholecontractperiod.Otherwise,theGrouprecognizesrevenueatacertainpointintimewhen"control"ofthegoodsorservicesistransferredtothecustomer.TheGroupadoptsoutputmethod,i.e.thevalueofgoodsorservicestransferredtocustomerstodeterminetheappropriateprogressofperformance.Wheretheprogresscannotbedeterminedreasonably,therevenueisrecognizedbasedontheamountofcostthatisexpectedtobecompensatedbasedonthecostalreadyincurred,untiltheprogressofperformanceisreasonablydetermined.Ifthecontractincludestwoormoreperformanceobligations,atcontractinception,theGroupallocatesthetransactionpricetosingleperformanceobligationaccordingtorelativeproportionofthestand-alonesellingpricesofthegoodsorservicespromisedbysingleperformanceobligation.However,wherethereisconclusiveevidencethatthecontractdiscountorvariableconsiderationisonlyrelatedtooneormore(notall)performanceobligationsinthecontract,theGroupshallallocatethecontractdiscountorvariableconsiderationtorelevantoneormoreperformanceobligations.Thestand-alonesellingpriceisthepriceatwhichtheGroupwouldsellapromisedgoodorserviceseparatelytoacustomer.Ifastand-alonesellingpriceisnotdirectlyobservable,theGroupshallconsiderallinformationthatisreasonablyavailabletotheGroupandmaximizetheuseofobservableinputsandapplyestimatesmethodsconsistentlyinsimilarcircumstances.Forcontractsthatcontainvariableconsideration(e.g.salesdiscount),theGroupestimatestheamountofconsiderationusingeithertheexpectedvalueorthemostlikelyamount.Thetransactionpricethatincludesvariableconsiderationisonlytotheextentthatitishighlyprobablethatsuchaninclusionwillnotresultinasignificantrevenuereversalinthefuturewhentheuncertaintyissubsequentlyresolved.Attheendofeachreportingperiod,theGroupreevaluatesthevariableconsiderationincludedinthetransactionprice.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
27.Revenue-continuedFornon-cashconsiderationfromcustomer,theGrouprecognizesthetransactionpricebasedonthefairvalueofthenon-cashconsideration.Wherethefairvalueofthenon-cashconsiderationcannotbereasonablyestimated,theGrouprecognizesthetransactionpriceindirectlybyreferencetothestand-alonepriceofthepromisedgoodsorservicespromisedtransferredtothecustomer.Ifthecontractincludessignificantfinancingcomponent,theGroupdeterminesthetransactionpricebasedontheamountpayableundertheassumptionthatthecustomerpaysthatamountpayableincashwhen"control"ofthegoodsorservicesisobtainedbythecustomer.Thedifferencebetweenthetransactionpriceandthecontractconsiderationshallbeamortizedwithinthecontractperiodusingeffectiveinterestrate.IftheGroupexpects,atcontractinception,thattheperiodbetweenwhentheGrouptransfersapromisedgoodorservicetoacustomerandwhenthecustomerpaysforthatgoodorservicewillbeoneyearorless,theGroupneedsnottoconsiderthesignificantfinancingcomponent.TheGroupdetermineswhetheritisaprincipaloranagentatthetimeofthetransactionbasedonwhetheritownsthe"control"ofthegoodsorservicesbeforethetransferofsuchgoodsorservicestothecustomer.TheGroupisaprincipalifitcontrolsthespecifiedgoodorservicebeforethatgoodorserviceistransferredtoacustomer,andtherevenueshallberecognizedbasedonthetotalconsiderationreceivedorreceivable;otherwise,theGroupisanagent,andtherevenueshallberecognizedbasedontheamountofcommissionorhandlingfeethatisexpectedtobecharged,andsuchamountisdeterminedbasedonthenetamountofthetotalconsiderationreceivedorreceivableafterdeductingthepricespayabletootherrelatedpartiesoraccordingtotheestablishedcommissionamountorproportion.Wherepaymentisreceivedinadvance,theadvancepaymentreceivedshallberecordedasaliabilityandrecognizedasrevenuewhentherelevantperformanceobligationissatisfied.Theaboveamountwillberecognizedasrevenueproportionatelyinaccordancewiththemodelofcontractualrightsexercisedbythecustomerif(1)theGroup'sadvancepaymentdoesnotneedtobereturned,(2)thecustomermaywaiveallorpartofitscontractualrights,and(3)theGroupexpectstobeentitledtotheamountrelatedtothecontractualrightswaivedbythecustomer.Otherwise,thebalanceoftheliabilitiesisrecognizedasrevenuebytheGrouponlywhenthepossibilityofthecustomerrequestingthesatisfactionoftheremainingperformanceobligationsisextremelyremote.
28.Contractcosts
28.1CoststofulfillacontractIfthecostsincurredinfulfillingacontractarenotwithinthescopeofotherstandardotherthantherevenuestandard,theGroupshallrecognizedanassetfromthecostsincurredtofulfillacontractonlyifthosecostsmeetallofthefollowingcriteria:(1)thecostsrelatedirectlytoacontractortoananticipatedcontractthattheGroupcanspecificallyidentify;(2)thecostsgenerateorenhanceresourcesoftheentitythatwillbeusedinsatisfyingperformanceobligationsinthefuture;and(3)thecostsareexpectedtoberecovered.Theassetmentionedaboveshallbeamortizedonabasisthatisconsistentwiththetransfertothecustomerofthegoodsorservicestowhichtheassetrelatesandrecognizedinprofitorlossfortheperiod.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
28.Contractcosts-continued
28.2ImpairmentofcontractcostsIndeterminationofimpairmentlossesofassetsrelatedtocontractcosts,firstlyimpairmentlossesofotherassetsrelatedtothecontractrecognizedbasedonotherrelevantaccountingstandards;secondly,theGroupshallrecognizedanimpairmentlosstotheextentthatthecarryingamountofanassetexceeds:(1)theremainingamountofconsiderationthattheGroupexpectstoreceiveinexchangeforthegoodsorservicestowhichtheassetrelates;(2)theestimatedcoststhatrelatetoprovidingthosegoodsorservices.TheGroupshall,aftertheimpairmenthasbeenprovided,recognizedinprofitorlossareversalofsomeorallofanimpairmentlosspreviouslyrecognizedwhentheimpairmentconditionsnolongerexistorhaveimproved.Theincreasedcarryingamountoftheassetshallnotexceedthecarryingamountthatwouldhavebeendeterminedifnoimpairmentlosshadbeenrecognizedpreviously.
29.TypesandaccountingtreatmentsofgovernmentgrantsGovernmentgrantsaretransferofmonetaryassetsornon-monetaryassetsfromthegovernmenttotheGroupatnoconsideration.AgovernmentgrantisrecognizedonlywhentheGroupcancomplywiththeconditionsattachedtothegrantandtheGroupwillreceivethegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.
29.1AccountingtreatmentofgovernmentgrantsrelatedtoassetsGovernmentgrants,suchasspecialfundsformodernlogisticsprojectandspecialfundsforenergy-savingandemissionreductionoftransportation,aregovernmentgrantsrelatedtoassetsastheyareallrelatedtotheconstructionanduseofassets.Agovernmentgrantrelatedtoanassetisrecognizedasdeferredincome,andevenlyamortizedtoprofitorlossovertheusefullifeoftherelatedasset.
29.2AccountingtreatmentofgovernmentgrantsrelatedtoincomeTheGroup'sgovernmentgrant,suchasfinancialsupportfundsofbusinesstaxconvertedtoVATandrewardforenergysaving,ifusedtocompensatetherelatedexpensesorlossestobeincurredinsubsequentperiods,isdeterminedtobegovernmentgrantrelatingtoincome.Agovernmentgrantrelatingtoincome,ifusedtocompensatetherelatedcost,expensesorlossestobeincurredinsubsequentperiods,isdeterminedasdeferredincomeandrecognizedinprofitorlossovertheperiodsinwhichtherelatedcostsarerecognized;ifusedtocompensatetherelatedcost,expensesorlossesalreadyincurred,isrecognizedimmediatelyinprofitorlossfortheperiod.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
29.Typesandaccountingtreatmentsofgovernmentgrants-continued
29.2Accountingtreatmentofgovernmentgrantsrelatedtoincome-continuedAgovernmentgrantrelatingtotheGroup'sdailyactivities,isrecognizedinotherincomeinlinewiththenatureofeconomictransaction.AgovernmentgrantnotrelatingtotheGroup'sdailyactivities,isrecognizedinnon-operatingincome.
30.Deferredtaxassets/deferredtaxliabilitiesTheincometaxexpensesincludecurrentincometaxanddeferredincometax.
30.1CurrentincometaxAtthebalancesheetdate,currentincometaxliabilities(orassets)forthecurrentandpriorperiodsaremeasuredattheamountexpectedtobepaid(orrecovered)accordingtotherequirementsoftaxlaws.
30.2DeferredtaxassetsanddeferredtaxliabilitiesFortemporarydifferencesbetweenthecarryingamountsofcertainassetsorliabilitiesandtheirtaxbase,orbetweenthenilcarryingamountofthoseitemsthatarenotrecognizedasassetsorliabilitiesandtheirtaxbasethatcanbedeterminedaccordingtotaxlaws,deferredtaxassetsandliabilitiesarerecognizedusingthebalancesheetliabilitymethod.Deferredtaxliabilitiesaregenerallyrecognizedforalltaxabletemporarydifferences.Deferredtaxassetsfordeductibletemporarydifferencesarerecognizedtotheextentthatitisprobablethattaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized.However,fortemporarydifferencesassociatedwiththeinitialrecognitionofgoodwillandtheinitialrecognitionofanassetorliabilityarisingfromatransaction,whichisnotabusinesscombinationthataffectsneithertheaccountingprofitnortaxableprofits(ordeductiblelosses)atthetimeoftransaction,nodeferredtaxassetorliabilityisrecognized.Fordeductiblelossesandtaxcreditsthatcanbecarriedforward,deferredtaxassetsarerecognizedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductiblelossesandtaxcreditscanbeutilized.Deferredtaxliabilitiesarerecognizedfortaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandassociates,andinterestsinjointventures,exceptwheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifferenceanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.Deferredtaxassetsarisingfromdeductibletemporarydifferencesassociatedwithsuchinvestmentsandinterestsareonlyrecognizedtotheextentthatitisprobablethattherewillbetaxableprofitsagainstwhichtoutilizethebenefitsofthetemporarydifferencesandtheyareexpectedtoreverseintheforeseeablefuture.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
30.Deferredtaxassets/deferredtaxliabilities-continued
30.2Deferredtaxassetsanddeferredtaxliabilities-continuedAtthebalancesheetdate,deferredtaxassetsandliabilitiesaremeasuredatthetaxratesapplicableintheperiodinwhichtheassetisrealizedortheliabilityissettledaccordingtotaxlaws.Currentanddeferredtaxexpensesorincomearerecognizedinprofitorlossfortheperiod,exceptwhentheyarisefromtransactionsoreventsthataredirectlyrecognizedinothercomprehensiveincomeorinequity,inwhichcasetheyarerecognizedinothercomprehensiveincomeorinequity,andwhentheyarisefrombusinesscombinations,inwhichcasetheyadjustthecarryingamountofgoodwill.Atthebalancesheetdate,thecarryingamountofdeferredtaxassetsisreviewedandreducedifitisnolongerprobablethatsufficienttaxableprofitswillbeavailableinthefuturetoallowthebenefitofdeferredtaxassetstobeutilized.Anysuchreductioninamountisreversedwhenitbecomesprobablethatsufficienttaxableprofitswillbeavailable.
30.3IncometaxoffsettingWhentheGrouphasalegalrighttosettleonanetbasisandintendseithertosettleonanetbasisortorealizetheassetsandsettletheliabilitiessimultaneously,currenttaxassetsandcurrenttaxliabilitiesareoffsetandpresentedonanetbasis.WhentheGrouphasalegalrighttosettlecurrenttaxassetsandliabilitiesonanetbasis,anddeferredtaxassetsanddeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxassetsandliabilitiesonanetbasisortorealizetheassetsandliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxassetsorliabilitiesareexpectedtobereversed,deferredtaxassetsanddeferredtaxliabilitiesareoffsetandpresentedonanetbasis.
31.LeasesLeaseisacontractthatconveystherighttouseanassetforaperiodoftimeinexchangeforconsideration.Forcontractsthataresignedormodifiedafterthedateofinitialapplication,atinception/modificationofthecontracts,theGroupassesseswhetherthecontractis,orcontains,alease.Unlessthetermsandconditionsofthecontractarechanged,theGroupdoesnotreassesswhetheracontractis,orcontains,alease.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
31.Leases-continued
31.1TheGroupasLessee
31.1.1SeparatingcomponentsofaleaseIfacontractcontainsaleasecomponentandoneormorenon-leasecomponents,theGroupallocatestheconsiderationinthecontracttoeachleasecomponentonthebasisoftherelativestand-alonepriceoftheleasecomponentsandtheaggregatestand-alonepriceofthenon-leasecomponents.
31.1.2Right-of-useassetsExceptforshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,atthecommencementdateofthelease,theGrouprecognisesaright-of-useassets.ThecommencementdateoftheleaseisthedateonwhichalessormakesanunderlyingassetavailableforusebytheGroup.TheGroupmeasurestheright-of-useassetsatcost.Thecostoftheright-of-useassetscomprises:
?theamountoftheinitialmeasurementoftheleaseliabilities;?anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentives;?anyinitialdirectcostsincurredbytheGroup;?anestimateofcoststobeincurredbythelesseeindismantlingandremovingtheunderlying
asset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.Right-of-useassetsaredepreciatedbytheGroupinaccordancewiththeASBENo.4FixedAssets.IftheGroupisreasonablycertain,thattheleasewilltransferownershipoftheunderlyingassettotheGroupbytheendoftheleaseterm,theright-of-useassetsisdepreciatedfromthecommencementdatetotheendoftheusefullifeoftheunderlyingasset.Otherwise,theright-of-useassetsisdepreciatedfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetsortheendoftheleaseterm.TheGroupappliesASBENo.8ImpairmentofAssets,todeterminewhethertheright-of-useassetsareimpairedandtoaccountforanyimpairmentlossidentified.
31.1.3LeaseliabilitiesExceptforshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,atthecommencementdateofthelease,theGroupmeasurestheleaseliabilitiesatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate.Iftheinterestrateimplicitintheleasecannotbereadilydetermined,thelesseeshallusethelessee'sincrementalborrowingrate.TheleasepaymentscomprisethefollowingpaymentsbytheGroupfortherighttousetheunderlyingassetduringtheleaseterm:
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
31.Leases-continued
31.1TheGroupasLessee-continued
31.1.3Leaseliabilities-continued?fixedpayments(includingin-substancefixedpayments),lessanyleaseincentives;?variableleasepaymentsthatdependonanindexorarate;?theexercisepriceofapurchaseoptioniftheGroupisreasonablycertaintoexercisethat
option;?paymentsforterminatingthelease,iftheleasetermreflectstheGroupexercisinganoption
toterminatethelease;?amountsexpectedtobepayablebytheGroupunderresidualvalueguarantees.
Variableleasepaymentsthatdependonanindexorarate,areinitiallymeasuredusingtheindexorrateasatthecommencementdate.Variableleasepaymentsnotincludedinthemeasurementoftheleaseliabilities,arerecognisedinprofitorloss,orinthecostofrelevantassets,intheperiodofthosepayments.Interestontheleaseliabilitiesineachperiodduringtheleasetermiscalculatedbyaconstantperiodicrateofinterestontheremainingbalanceoftheleaseliabilitiesandrecognizedinthecurrentprofitandlossorthecostoftherelevantassets.Afterthecommencementdate,ifoneofthefollowingoccurs,theleaseliabilityisremeasuredbytheGroupwiththeadjustmenttotheright-of-useasset.Ifthecarryingamountoftheright-of-useassetisreducedtozeroandthereisfurtherreductioninthemeasurementoftheleaseliability,theremainingremeasurementshouldberecognizedinprofitorloss.?thereisachangeintheleaseterm,orintheassessmentofanoptiontopurchasethe
underlyingasset,theGroupremeasurestheleaseliabilities,onthebasisoftherevisedlease
termandthereviseddiscountrate;?thereisachangeintheamountsexpectedtobepayableunderaresidualvalueguarantee,or
infutureleasepaymentsresultingfromachangeinanindexorarateusedtodetermine
thosepayments,theGroupremeasurestheleaseliabilities,onthebasisoftherevisedlease
paymentsandtheunchangeddiscountrate,unlessthechangeintheleasepaymentsresults
fromachangeinfloatinginterestrates,inwhichcaseareviseddiscountisappliedtothe
presentvalue.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
31.Leases-continued
31.1TheGroupasLessee-continued
31.1.4Short-termleasesandleasesforwhichtheunderlyingassetisoflowvalueTheGroupelectsnottorecogniseright-of-useassetsorleaseliabilitiesforshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,i.e.portandterminalfacilities,buildings,machineryandequipment,furnitureandfixtureandotherequipment,motorvehiclesandcargoships,othershort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue.Ashorts-termleaseisaleasethat,atthecommencementdate,hasaleasetermof12monthsorless.Aleaseforwhichtheunderlyingassetisoflowvalueisthat,thevalueoftheunderlyingassetislowwhenitisnew.Forshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,theGrouprecognisestheleasepaymentsassociatedwiththoseleasesasanexpenseorcostofrelevantassetonastraight-linebasisovertheleaseterm.
31.1.5LeasemodificationsAleasemodificationshouldbeaccountedforasaseparateleaseifbothofthefollowingapply:
?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormore
underlyingassets;and?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alone
pricefortheincreaseinscopeandanyappropriateadjustmentstothatstand-aloneprice
accordingtothecircumstancesoftheparticularcontractForaleasemedicationthatisnotaccountedforasaseparatelease,attheeffectivedateoftheleasemodification,theGroupshouldallocatetheconsiderationinthemodifiedcontract,determinetheleasetermofthemodifiedleaseandremeasuretheleaseliabilitybydiscountingtherevisedpaymentsusingareviseddiscountrate.Forleasemodificationsthatdecreasethescopeoftheleaseornarrowthetermofthelease,theGroupshoulddecreasethecarryingamountoftheright-of-useassetwithanygainorlossrelatingtothepartialorfullterminationoftheleaseshouldberecognizedinprofitorloss.Forremeasurementofleaseliabilitiesfromallotherleasemodifications,acorrespondingadjustmentismadetothecarryingamountoftheright-of-useasset.
31.2.1SeparatingcomponentsofaleaseLeasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownership.Allotherleasesareclassifiedasoperatingleases.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
31.Leases-continued
31.2TheGroupasLessor-continued
31.2.2ClassificationofleasesLeasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownership.Allotherleasesareclassifiedasoperatingleases.
31.2.2.1TheGroupaslessorunderoperatingleasesTheGrouprecognisesleasepaymentsfromoperatingleasesasincomeonastraight-linebasis.TheGroupcapitalisesinitialdirectcostsincurredinobtaininganoperatingleaseandrecognisesthosecostsasanexpenseovertheleasetermonthesamebasisastheleaseincome.VariableleasereceiptsrelatingtoanoperatingleasenotincludedintheleasereceiptsarerecognizedinprofitorlossbytheGroupwhenincurred.
31.2.2.2TheGroupaslessorunderfinanceleasesAtthecommencementdate,theGrouprecognizesafinanceleasereceivableattheamountequaltothenetinvestmentintheleasewithfinanceleaseassetsderecognized.Thenetinvestmentintheleaseisthesumofanyunguaranteedresidualvalueandleasepaymentsreceivablefromthecommencementdate,discountedattheinterestrateimplicitinthelease.TheamountoftheleasepaymentsreceivablereferstotheamountthattheGroupshouldcollectfromthelesseeforthepurposeoftransferringtheleasedassetsduringtheleaseterm,including:
?fixedpayments(includingin-substancefixedpayments)paidbythelessee,lessanyleaseincentives;?variableleasepaymentsthatdependonanindexorarate;?theexercisepriceofapurchaseoption,providedthatitisreasonablydeterminedthatthe
lesseewillexercisetheoption;?thelesseeexercisestheamounttobepaidfortheterminationoftheleaseoption,providedthattheleasetermreflectsthelessee'sexerciseoftheoptiontoterminatethelease;?theresidualvalueoftheguaranteeprovidedbythelessee,thepartyconcernedwiththelesseeandtheindependentthirdpartywiththefinancialabilitytoperformtheguaranteeobligation.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
31.Leases-continued
31.2TheGroupasLessor-continued
31.2.2Classificationofleases-continued
31.2.2.2TheGroupaslessorunderfinanceleases-continuedVariablepaymentsreceivablenotincludedinthenetinvestmentintheleasearerecognizedinprofitorlosswhentheyarise.InterestincomeforeachperiodovertheleasetermisrecognizedbytheGroupatthefixedperiodicrate.
31.2.3SubleasesAsalessorofthesublease,theGroupaccountsfortheoriginalleasecontractandthesubleasecontractastwoseparatecontracts.TheGroupclassifiesthesubleasesbasedontheright-of-useassetsgeneratingfromtheoriginalleaseratherthantheunderlyingassetsoftheoriginallease.
31.2.4LeasemodificationsTheGroupaccountsforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyleaseadvancesorreceivablesrelatingtotheoriginalleaseastheleasereceiptsforthenewlease.TheGroupshouldaccountforamodificationtoafinanceleaseasaseparateleaseifboth:
?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;and?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alonepricefortheincreaseinscopewithanyappropriateadjustmenttothatstand-aloneprice
Foramodificationtoafinanceleasethatisnotaccountedforasaseparatelease,theGroupshouldaccountforthemodificationasfollows:
?iftheleasewouldhavebeenclassifiedasanoperatingleasehadthemodificationbeeneffectattheinceptiondate,theGroupshouldaccountfortheleasemodificationasanewleasefromtheeffectivedateofthemodification,andmeasurethecarryingamountoftheunderlyingassetasthenetinvestmentintheleasebeforetheeffectivedateoftheleasemodification.?Iftheleasewouldhavebeenclassifiedasanoperatingleaseifthemodificationhadbeenineffectattheinceptiondate,theGroupshouldapplytherequirementsofcontractmodificationandrenegotiationundertheASBENo.22FinancialInstruments:RecognitionandMeasurement.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
31.Leases-continued
31.2TheGroupasLessor-continued
31.2.5Saleandleasebacktransactions
31.2.5.1TheGroupastheseller-lesseeTheGroupappliestherequirementsoftherevenuestandardtodeterminewhetherthetransferofanassetisaccountedforasasaleofthatasset.Ifthetransferofanassetdoesnotconstituteasale,theGroupshouldcontinuetorecognizethetransferredassetsandshouldrecognizeafinancialliabilityequaltothetransferproceedsapplyingASBENo.22FinancialInstruments:RecognitionandMeasurement.Ifthetransferofanassetisasale,theGroupshouldmeasuretheright-of-useassetarisingfromtheleasebackattheproportionofthepreviouscarryingamountoftheassetthatrelatestotherightofuse,andrecognizeonlytheamountofanygainorlossthatrelatestotherightstransferredtothelessor.
32.ExchangeofNon-MonetaryAssetsWhereanon-monetaryassetstransactionsatisfiesthefollowingconditionsatthesametime,itshouldcalculatedbasedonfairvalue.Thetransactioniscommercialinnatureandthefairvalueoftheassetsreceivedorsurrenderedcanbemeasuredreliably.Thefairvalueoftheassetssurrenderedandrelevantpayabletaxesshallberegardedasthetransactioncostoftheassetsreceived.Forassetssurrendered,thedifferencebetweenthefairvalueandthecarryingvalueoftheassetsurrenderedshallberecordedintotheprofitorlossofthecurrentperiod.Ifanyexactevidenceshowingthatthefairvalueoftheassetsreceivedismorereliable,thecostofassetsreceivedandsurrenderedshallbecalculatedasdifferentway.Forassetsreceived,itscostshallbecalculatedbasedonfairvalueofassetsreceivedandrelevantpayabletaxes.Fortheassetssurrendered,thedifferencebetweenthefairvalueoftheassetsreceivedandthecarryingvalueoftheassetsurrenderedshallberecordedintotheprofitorlossofthecurrentperiod.Whereanon-monetaryassetstransactiondoesnotmeettheconditionsasprescribed,thecarryingvalueandrelevantpayabletaxesoftheassetssurrenderedshallbethecostoftheassetsreceivedandnoprofitorlossisrecognized.
33.DiscontinuedOperationDiscontinuedoperationreferstotheseparatelyidentifiablecomponentsthathavebeendisposedoforclassifiedasheldforsaleandmeetoneofthefollowingconditions::
(1)Thecomponentrepresentsanindependentmainbusinessoramajorbusinessarea;
(2)Thiscomponentisapartofarelatedplanthatintendstodisposeanindependentmainbusinessoraseparate
mainoperatingarea;
(3)Thiscomponentisasubsidiaryacquiredexclusivelyforresale.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
33.DiscontinuedOperation-continuedProfitsorlossesfromdiscontinuedoperationsarepresentedseparatelyintheincomestatementfromcontinuingoperations.Profitsandlossesfromoperationsordisposals(e.g.impairmentlossesandreversalsofdiscontinuedoperations)arepresentedunderdiscontinuedoperations.Fordiscontinuedoperationspresentedinthecurrentperiod,theinformationpreviouslyundercontinuingoperationsispresentedunderdiscontinuedoperationsbytheGroupinthefinancialstatementsforthecomparableaccountingperiod.
34.SafetyProductionCostAccordingtotheAdministrativeRulesonProvisionandUseofEnterpriseSafetyProductionCostjointlyissuedbytheMinistryofFinanceandtheStateAdministrationofWorkSafetyon14February2012(filedasCaiQi[2012]No.
16),safetyproductioncostsetasidebytheGroupisdirectlyincludedinthecostofrelevantproductsorrecognizedinprofitorlossfortheperiod,aswellasthespecialreserve.Whensafetyproductioncostsetasideisutilized,ifthecostsincurredcanbecategorizedasexpenditure,thecostsincurredshouldbechargedagainstthespecialreserve.Ifthecostssetasideareusedtobuildupfixedassets,thecostsshouldbechargedtoconstructioninprogress,andreclassifiedtofixedassetswhenthesafetyprojectsarereadyforintendeduse.Meantime,expendituresinbuildingupfixedassetsaredirectlychargedagainstthespecialreservewiththeaccumulateddepreciationrecognizedatthesameamount.Depreciationwillnotbemadeinthefutureperiodonsuchfixedassets.
35.Criticaljudgmentsinapplyingaccountingpoliciesandkeyassumptionsanduncertaintiesin
accountingestimatesIntheapplicationofaccountingpoliciesassetoutinNote(III),theCompanyisrequiredtomakejudgments,estimatesandassumptionsaboutthecarryingamountsofitemsinthefinancialstatementsthatcannotbemeasuredaccurately,duetotheinternaluncertaintyoftheoperatingactivities.Thesejudgments,estimatesandassumptionsarebasedonhistoricalexperiencesoftheCompany'smanagementaswellasotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.TheCompanyregularlyreviewsthejudgments,estimatesandassumptionsonagoingconcernbasis.Changesinaccountingestimateswhichonlyaffectthecurrentperiodshouldberecognizedincurrentperiod;changeswhichnotonlyaffectthecurrentbutthefutureperiodsshouldberecognizedincurrentandfutureperiods.Atthebalancesheetdate,keyassumptionsanduncertaintiesthatarelikelytoleadtosignificantadjustmentstothebookvaluesofassetsandliabilitiesinthefutureare:
GoodwillimpairmentForthepurposeofimpairmenttesting,thepresentvalueoftheexpectedfuturecashflowsoftheassetsgrouporportfolioincludinggoodwillshallbecalculated,andsuchexpectedfuturecashflowsshallbeestimated.Meantime,apre-taxrateshallbedeterminedthatshouldreflectthetimevalueofmoneyonthecurrentmarketandthespecificinterestrisks.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
35.Criticaljudgmentsinapplyingaccountingpoliciesandkeyassumptionsanduncertaintiesin
accountingestimates-continuedRecognitionofdeferredincometaxTheGroupcalculatesandmakesprovisionfordeferredtaxliabilitiesaccordingtotheprofitdistributionplanofsubsidiaries,associatesandthejointventuressubjecttotherelatedlaw.Forretainedearningswhicharenotallocatedbytheinvestmentcompany,sincetheprofitswillbeusedtoinvestthecompany'sdailyoperationandfuturedevelopment,nodeferredtaxliabilitiesarerecognized.Iftheactuallydistributedprofitsinthefuturearemoreorlessthanthoseexpected,correspondingdeferredtaxliabilitieswillberecognizedorreversedattheearlierofprofitsdistributiondateandthedeclarationdate,intheprofitandlossofthecurrentperiod.Deferredtaxassetsarerecognizedbasedonthedeductibletemporarydifferenceandthecorrespondingtaxrate,totheextentthatithasbecomeprobablethatfuturetaxableprofitwillbeavailableforthedeductibletemporarydifference.Ifinthefuturetheactualtaxableincomedoesnotcoincidewiththeamountcurrentlyexpected,thedeferredtaxassetsresultingwillberecognizedorreversedintheperiodwhenactuallyincurred,inprofitorloss.
(1)Changesinaccountingestimatesandreasons
TheProposalontheChangeinAccountingEstimatesofDepreciationPeriodsofCertainFixedAssetsisdeliberatedandadoptedatthe7thsessionofthe9thBoardofDirectorsandthe7thsessionofthe9thBoardofSupervisorheldon14April2020.TheCompanyhasreviewedtheestimatedusefullivesoffixedassetsbasedontheircurrentperformanceandusageconditions.InordertomoreobjectivelyandfairlyreflecttheGroup'sfinancialpositionandresultsofoperations,theCompanyhasdecidedtochangetheaccountingestimatesforthedepreciationperiodsofcertainfixedassets,withthemainadjustmentsasfollows:
1)Thedepreciationperiodofportandchannelfacilitiesinportandterminalfacilitiesischangedfrom40years
to40-50years,andthedepreciationperiodofrailwaylinesischangedfrom50yearsto40years.
2)Thedepreciationperiodofcivilsupportfacilitiesinhousesandbuildingsischangedfrom10yearsto25
years.
3)Thedepreciationperiodofelectromechanicalequipmentinmachineryequipment,furniture&fixturesand
otherequipmentischangedfrom5yearsto5years,8yearsor10years.
4)Thedepreciationperiodofspecialoperationshipsinmotorvehiclesandcargoshipsischangedfrom20
yearsto18years,andthatofspecialoperationauxiliaryshipsischangedfrom20yearsto20years.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
35.Criticaljudgmentsinapplyingaccountingpoliciesandkeyassumptionsanduncertaintiesin
accountingestimates-continuedRecognitionofdeferredincometax-continued
(2)Impactofchangesinaccountingestimates
Theaboveadjustmentstodepreciationperiodsoffixedassetsareimplementedfrom1April2020.Accordingto"AccountingStandardsforBusinessEnterprisesNo.28-ChangesinAccountingPoliciesandAccountingEstimatesandCorrectionsofErrors",theadjustmenttothedepreciationperiodsoffixedassetsisachangeinaccountingestimate,whichshouldbedealtwithusingtheprospectiveapplicationmethodwithoutretrospectiveadjustmentandwillnothaveanyimpactonthefinancialpositionandresultsofoperationsoftheGroupinpreviousyears.Asaresultoftheabovechangeinaccountingestimates,theGroup'sdepreciationexpenseoffixedassetsincreasedbyRMB20.29million,netprofitattributabletotheparentcompanydecreasedbyRMB5.19millionandshareholders'equityattributabletotheparentcompanydecreasedbyRMB5.19millionfortheyear2020.TheabovechangesinaccountingestimateshavenoimpactontheCompany.
36.Changesinsignificantaccountingestimates
(1)ChangesinaccountingestimatesandreasonsTheProposalontheChangeinAccountingEstimatesofDepreciationPeriodsofCertainFixedAssetsisdeliberatedandadoptedatthe7thsessionofthe9thBoardofDirectorsandthe7thsessionofthe9thBoardofSupervisorheldon14April2020.TheCompanyhasreviewedtheestimatedusefullivesoffixedassetsbasedontheircurrentperformanceandusageconditions.InordertomoreobjectivelyandfairlyreflecttheGroup'sfinancialpositionandresultsofoperations,theCompanyhasdecidedtochangetheaccountingestimatesforthedepreciationperiodsofcertainfixedassets,withthemainadjustmentsasfollows:
1)Thedepreciationperiodofportandchannelfacilitiesinportandterminalfacilitiesischangedfrom40years
to40-50years,andthedepreciationperiodofrailwaylinesischangedfrom50yearsto40years.
2)Thedepreciationperiodofcivilsupportfacilitiesinhousesandbuildingsischangedfrom10yearsto25
years.
3)Thedepreciationperiodofelectromechanicalequipmentinmachineryequipment,furniture&fixturesand
otherequipmentischangedfrom5yearsto5years,8yearsor10years.
4)Thedepreciationperiodofspecialoperationshipsinmotorvehiclesandcargoshipsischangedfrom20
yearsto18years,andthatofspecialoperationauxiliaryshipsischangedfrom20yearsto20years.TheabovechangesinthedepreciationperiodsoffixedassetsarewithinthescopeoftheGroup'saccountingpolicyondepreciationoffixedassets.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
36.Changesinsignificantaccountingestimates-continued
(2)FinancialimpactofchangesinaccountingestimatesTheaboveadjustmentstodepreciationperiodsoffixedassetsareimplementedfrom1April2020.Accordingto"AccountingStandardsforBusinessEnterprisesNo.28-ChangesinAccountingPoliciesandAccountingEstimatesandCorrectionsofErrors",theadjustmenttothedepreciationperiodsoffixedassetsisachangeinaccountingestimate,whichshouldbedealtwithusingtheprospectiveapplicationmethodwithoutretrospectiveadjustmentandwillnothaveanyimpactonthefinancialpositionandresultsofoperationsoftheGroupinpreviousyears.Asaresultoftheabovechangeinaccountingestimates,theGroup'sdepreciationexpenseoffixedassetsincreasedbyRMB20.29million,netprofitattributabletotheparentcompanydecreasedbyRMB5.19millionandshareholders'equityattributabletotheparentcompanydecreasedbyRMB5.19millionfortheyear2020.TheabovechangesinaccountingestimateshavenoimpactontheCompany.
37.Changesinsignificantaccountingpolicies
(1)InterpretationoftheAccountingStandardsforBusinessEnterprisesNo.13On10December2019,theMinistryofFinanceissuedInterpretationoftheAccountingStandardsforBusinessEnterprisesNo.13inCaiKuai[2019]FileNo.21(hereinafterreferredtoas"InterpretationNo.13").Question1ofInterpretationNo.13furthersupplementedtheAccountingStandardsforBusinessEnterprisesNo.36-RelatedPartyDisclosureandclarifiedthatthefollowingconstituterelatedparties:(1)Anenterpriseandthejointventureorassociatedenterpriseofanyothermemberunitoftheenterprisegrouptowhichtheenterpriseisaffiliated(includingtheparentcompanyandsubsidiaries);(2)Anenterprise'sjointventureandtheenterprise'sanyotherjointventureorassociatedenterprise.Question2ofInterpretationNo.13modifiedtheAccountingStandardsforBusinessEnterprisesNo.20-BusinessCombinations,whichprovidedthedefinitionofbusinessandaddedguidanceonwhethertheprocessingprocessismaterial,andintroducedanoptionalconcentrationtesttosimplifytheassessmentpurpose.TheaforesaidprovisionshavenosignificantimpactonthefinancialstatementsoftheGroupandtheCompanyfor2020.
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(III)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
37.Changesinsignificantaccountingpolicies-continued
(2)ProvisionsontheAccountingTreatmentoftheCOVID-19Pandemic-relatedRentalConcessionsOn19June2020,theMinistryofFinanceissuedProvisionsontheAccountingTreatmentoftheCOVID-19Pandemic-relatedRentalConcessionsinCaiKuai[2020]FileNo.10(hereinafterreferredtoas"FileNo.10").It'sspecifiedinFileNo.10that,forrentalconcessions,providedthatcertainconditionsaresatisfied,anenterprisecanconductaccountingtreatmentaccordingtoAccountingStandardsforBusinessEnterprisesNo.21—Leases,oradoptthesimplifiedmethodspecifiedinFileNo.10.Wheretheenterpriseadoptsthesimplifiedmethod,it'sunnecessarytoassesswhetherthereisleasechangesorre-assesstheleaseclassifications.Theenterpriseshallapplytheoptiontoallthesimilarleasecontractsandshallnotchangeitarbitrarily.TheGroupdeterminedtoadoptthesimplifiedmethodforalltherentalconcessionsthatfallintotheapplicablescope.TherelevantrentalconcessionshandledwiththesimplifiedmethodhavenoimpactontheCompany'sprofitsandlossesinthecurrentperiodof2020,andit'simpactontheGroup'sprofitsorlossesof2020isshownasbelow:
RMB
| Item | 2020 |
| Operatingincome | -22,310,378.46 |
| Operatingcost | -293,348.62 |
| Administrativeexpenses | -85,515.23 |
| Non-operatingincome | -4,940,601.35 |
| Incometaxexpenses | -6,320,851.75 |
| Netprofit | -20,551,264.21 |
| Totalcomprehensiveincome | -20,551,264.21 |
(IV)TAXES
1.Majortaxesandtaxrates
| Taxes | Taxbasis | Taxrate |
| Enterpriseincometax | Taxableincome | 16.5%-34%(Note1) |
| Dividendincometax | 5%,10%,25%(Note2) | |
| Value-addedTax("VAT")(Note3) | Incomefromsaleofgoods | 9%-13% |
| Incomefromtransportation,loadingandunloadingbusinessandpartofmodernserviceindustries | 6% | |
| Incomefromsaleofrealestate,propertymanagement,realestatelease,etc. | 5% | |
| Socialcontributiontax(Note4) | Income | 0.65%-7.6% |
| Deedtax | Landuserightandpropertytransferamount | 3%-5% |
| Propertytax | 70%ofcostofpropertyorrentalincome | 1.2%or12% |
| Citymaintenanceandconstructiontax | VATpaid | 1%-7% |
| Educationsurtax | VATpaid | 3% |
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(IV)TAXES-continued
1.Majortaxesandtaxrates-continuedNote1:TheGroup'senterpriseincometaxiscalculatedbasedonthecurrenttaxratestipulatedbylocaltaxlaws.
Amongthem,theCompanyaresubjecttoanenterpriseincometaxrateof25%,thesubsidiariessetupinHongKongaresubjecttoanenterpriseincometaxrateof16.5%,themajorityofsubsidiariessetupinChinaaresubjecttoanenterpriseincometaxrateof25%andcertainothersaresubjecttothepreferentialtaxrateforsmallandmicroenterprisesof20%,andtheotheroverseassubsidiariesaresubjecttoenterpriseincometaxratesbetween28%and34%.Note2:ForeigninvestorswhoreceivedividendsofprofitsfromChinesesubsidiariesin2008andthereafter
generallyshallpaywithholdingincometaxatarateof10%inaccordancewiththerelevantprovisionsofthePRCenterpriseincometax.Forcompaniesincorporatedincertainregions(includingHongKongandSingapore),ifthecompaniesareactualownersholdingmorethan25%interestinthesubsidiariesinChina,theywillenjoyapreferentialtaxrateof5%.TheCompanyobtainsdividendsdistributedbyoverseassubsidiariesandshouldpayenterpriseincometaxatarateof25%inaccordancewithrelevantChinesetaxlaws.TheCompanyobtainstaxableincomeoutsideofChina,andtheamountofincometaxthathasbeenpaidabroadcanbeoffsetwiththecurrenttaxableamount.ThecreditlimitisthetaxableamountcalculatedinaccordancewiththeprovisionsoftheEnterpriseIncomeTaxLaw.Note3:TheVATamountisthebalanceoftheoutputtaxlessthedeductibleinputtax,andtheoutputtaxis
calculatedinaccordancewiththesalesincomeandthecorrespondingtaxratestipulatedintherelevanttaxlawsofChina.Note4:ThesocialcontributiontaxisthetaxpaidbytheoverseassubsidiariesoftheGrouptothelocal
government.
2.Taxpreference
SomesubsidiariesoftheGroupinChinaarerecognizedashigh-techenterprisesorencouragedindustrialenterprisesintheregionandaresubjecttoanenterpriseincometaxrateof15%.TheGroup'ssubsidiariesoutsideChinamaybesubjecttoenterpriseincometaxpreferenceinaccordancewithrelevantlocaltaxpolicies.TheCompanyandsomeofitssubsidiarieswereexemptedfrompayinghousepropertytaxandurbanlandusetax,etc.forthefirstquarterof2020inaccordancewiththeNoticeontheIssuanceofSeveralMeasurestoRespondtotheCOVID-19PandemicandSupportEnterprisesinWeatheringHardTimesissuedbylocalpeople'sgovernments.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS
1.Cashandbankbalances
| Item | Closingbalance | Openingbalance |
| Cash | 570,307.93 | 331,305.65 |
| RMB | 31,555.69 | 122,990.39 |
| USD | 146,078.94 | 55,429.82 |
| HKD | 24,653.41 | 28,354.40 |
| BRL | 5,997.01 | 8,872.81 |
| Others | 362,022.88 | 115,658.23 |
| Bankdeposit(Note1) | 11,420,083,598.40 | 7,423,112,193.18 |
| RMB | 7,458,567,108.92 | 4,868,888,181.56 |
| USD | 817,495,062.65 | 1,597,545,919.28 |
| EUR | 770,193,517.95 | 528,103,576.51 |
| BRL | 273,701,827.77 | 310,275,686.79 |
| HKD | 2,076,664,153.73 | 76,041,665.91 |
| AUD | 557,797.36 | - |
| Others | 22,904,130.02 | 42,257,163.13 |
| Othercashandbankbalances(Note2) | 370,770,828.30 | 311,504,711.43 |
| RMB | 370,726,535.43 | 311,504,711.43 |
| HKD | 44,292.87 | - |
| Total | 11,791,424,734.63 | 7,734,948,210.26 |
| Including:Thetotalamountoffundsdepositedoverseas | 5,313,591,920.43 | 3,511,266,717.03 |
Note1:ThebankdepositsoftheGroupdepositedoverseasandrestrictedforremittancetoChinaattheendofthe
yeartotallednil(attheendofthepreviousyear:nil).Note2:Thestructureddepositsinothercashandbankbalancesthatcanbereadilywithdrawnondemandattheend
oftheyeartotalledRMB357,120,261.94,therestricteddeposittotalledRMB11,528,570.90,andthe
balanceofthesecuritiesmarginaccountwasRMB2,121,995.46.
2.Held-for-tradingfinancialassets
| Item | Closingbalance | Openingbalance |
| FinancialassetsatFVTPL | 850,165,448.59 | - |
| Including:Debtinvestmentinstruments | - | - |
| Equityinvestmentinstruments | 165,448.59 | - |
| Structuraldeposits | 850,000,000.00 | - |
| Total | 850,165,448.59 | - |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
3.Notesreceivable
(1)Categoryofnotesreceivable
| Category | Closingbalance | Openingbalance |
| Bankacceptance | 745,000.16 | 13,290,478.02 |
| Commercialacceptance | 3,146,994.68 | 24,901,772.00 |
| Total | 3,891,994.84 | 38,192,250.02 |
| Less:Provisionforcreditlosses(Note) | - | - |
| Carryingamount | 3,891,994.84 | 38,192,250.02 |
Note:TheGroupbelievesthattheacceptorofitsbankacceptanceandcommercialacceptancehavehighcredit
ratingswithnosignificantcreditrisks;therefore,noprovisionforcreditlossismade.
(2)Asat31December2020,therearenonotesreceivablepledged.
(3)Asat31December2020,therearenonotesreceivableendorsedor
discountedwhicharenotyetdueatthebalancesheetdate.
(4)Asat31December2020,therearenonotesreclassifiedtoaccountsreceivableduetothedrawers'inability
tosettlethenote.
(5)TheGrouphasnonotesreceivablewrittenoffin2020.
4.Accountsreceivable
(1)Accountsreceivabledisclosedbyaging
| Aging | Closingbalance | ||
| Accountsreceivable | Provisionforcreditloss | Proportion(%) | |
| Within1year | 1,329,489,121.52 | 18,744,736.21 | 1.41 |
| Morethan1yearbutnotexceeding2years | 75,815,966.83 | 16,737,219.64 | 22.08 |
| Morethan2yearsbutnotexceeding3years | 2,782,945.61 | 474,387.92 | 17.05 |
| Morethan3years | 39,639,520.65 | 39,120,974.68 | 98.69 |
| Total | 1,447,727,554.61 | 75,077,318.45 | |
(2)Disclosureofaccountsreceivablebycategories
| Creditrating | Expectedcreditlossrate(%) | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionforcreditloss | Bookvalue | Carryingamount | Provisionforcreditloss | Bookvalue | ||
| A | 0.00-0.10 | 659,544,396.52 | 301,903.39 | 659,242,493.13 | 552,947,162.60 | 236,251.00 | 552,710,911.60 |
| B | 0.10-0.30 | 520,087,318.71 | 639,654.91 | 519,447,663.80 | 730,397,420.98 | 2,106,455.92 | 728,290,965.06 |
| C | 0.30-50.00 | 207,630,761.65 | 23,911,382.65 | 183,719,379.00 | 70,292,155.38 | 1,703,501.79 | 68,588,653.59 |
| D | 50.00-100.00 | 60,465,077.73 | 50,224,377.50 | 10,240,700.23 | 101,658,746.76 | 94,789,147.11 | 6,869,599.65 |
| Total | 1,447,727,554.61 | 75,077,318.45 | 1,372,650,236.16 | 1,455,295,485.72 | 98,835,355.82 | 1,356,460,129.90 | |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
4.Accountsreceivable-continued
(3)Changesinprovisionforcreditlossofaccountsreceivable
| Item | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | Total |
| At1January2020 | 4,046,208.71 | 94,789,147.11 | 98,835,355.82 |
| Carryingamountofaccountsreceivableat1January2020 | |||
| --Transferredtocredit-impairedaccountsreceivables | - | - | - |
| --Reversedtonotcredit-impairedaccountsreceivable | - | - | - |
| Provisionfortheyear | 22,198,343.29 | 12,592,586.51 | 34,790,929.80 |
| Reversalfortheyear | -870,975.22 | -53,139,001.51 | -54,009,976.73 |
| Transfer-outfromderecognitionoffinancialassets(includingdirectwrite-down) | - | -3,287,015.26 | -3,287,015.26 |
| Otherchanges | -520,635.83 | -731,339.35 | -1,251,975.18 |
| At31December2020 | 24,852,940.95 | 50,224,377.50 | 75,077,318.45 |
(4)Accountsreceivablewrittenoffintheyear
| Item | Written-offamount |
| YantaiJinquanInternationalShippingAgencyLLCShenzhenBranch | 289,193.50 |
| ShandongProvinceYantaiInternationalMarineShippingCompanyShenzhenBranch | 2,997,821.76 |
| Total | 3,287,015.26 |
(5)Thetopfivebalancesofaccountsreceivableattheendoftheyearclassifiedbydebtor
| Nameofentity | Closingbalance | Aging | Proportionoftheamounttothetotalaccountsreceivable(%) | Closingbalanceofprovisionforcreditloss |
| ClientA | 213,605,473.08 | Within1year,morethan1yearbutnotexceeding2years,morethan2yearbutnotexceeding3years,morethan3years | 14.75 | 213,605.47 |
| ClientB | 78,767,592.24 | Within2years | 5.44 | 13,358,983.64 |
| ClientC | 63,238,786.43 | Within1year | 4.37 | 63,238.79 |
| ClientD | 56,326,325.71 | Within1year | 3.89 | 56,326.33 |
| ClientE | 34,581,743.22 | Within2years | 2.39 | 5,865,063.65 |
| Total | 446,519,920.68 | 30.84 | 19,557,217.88 |
5.Receivablesfinancing
(1)Receivablesfinancingclassification
| Items | Closingbalance | Openingbalance |
| Bankacceptancemeasuredbyfairvalue | 217,449,966.41 | 260,760,537.45 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
5.Receivablesfinancing-continued
(2)On31December2020,theGrouphasnopledgedreceivablesfinancing.
(3)On31December2020,TheGrouphasendorsedordiscountedandhasnot
yetmaturedthefinancingofreceivablesonthebalancesheetdate.
| Item | Closingbalance | Openingbalance | ||
| Derecognized | Recognized | Derecognized | Recognized | |
| Bankacceptancemeasuredbyfairvalue | 129,866,604.18 | - | 129,391,886.08 | - |
6.Prepayments
(1)Aginganalysisofprepayment
| Aging | Closingbalance | Openingbalance | ||
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within1year | 48,508,252.83 | 98.55 | 50,341,341.46 | 91.47 |
| Morethan1yearbutnotexceeding2years | 581,084.82 | 1.18 | 4,533,596.99 | 8.24 |
| Morethan2yearsbutnotexceeding3years | - | - | - | - |
| Morethan3years | 131,512.46 | 0.27 | 159,081.36 | 0.29 |
| Total | 49,220,850.11 | 100.00 | 55,034,019.81 | 100.00 |
(2)Asat31December2020,theGrouphasnosignificantprepaymentsaged
morethanoneyear.
(3)Thetopfivebalancesofprepaymentsattheendoftheyearclassifiedbyentities
| Nameofentity | RelationshipwiththeCompany | 31December2020 | Proportionoftheclosingbalancetothetotalprepayments(%) |
| SahamAssuranceTogoS.A. | Non-relatedparty | 11,437,000.52 | 23.23 |
| ChubbSegurosBrasilS.A. | Non-relatedparty | 2,671,202.65 | 5.43 |
| UptimeGroup | Non-relatedparty | 1,997,591.63 | 4.06 |
| FairfaxBrasilSegurosCorporativosS.A. | Non-relatedparty | 1,964,254.53 | 3.99 |
| CCCCFirstHarbourConsultantsCo.,Ltd. | Non-relatedparty | 1,614,912.75 | 3.28 |
| Total | 19,684,962.08 | 39.99 |
7.Otherreceivables
7.1Summaryofotherreceivables
| Item | Closingbalance | Openingbalance |
| Interestreceivable | - | 159,794.48 |
| Dividendreceivable | 258,137,208.69 | 459,352,522.24 |
| Otherreceivables | 3,299,058,252.57 | 1,669,865,935.78 |
| Total | 3,557,195,461.26 | 2,129,378,252.50 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.2Interestreceivable
(1)Classificationofinterestreceivable
| Item | Closingbalance | Openingbalance |
| Interestreceivablefromrelatedparties | - | 159,954.43 |
| Total | - | 159,954.43 |
| Less:Provisionforcreditloss | - | 159.95 |
| Bookvalue | - | 159,794.48 |
(2)Asat31December2020,theGrouphasnosignificantoverdueinterest.
7.3Dividendreceivable
(1)Presentationofdividendreceivable
| Nameofinvestee | Closingbalance | Openingbalance |
| ChinaNanshanDevelopment(Group)Incorporation("NanshanGroup") | 210,831,000.00 | 313,435,420.00 |
| Tin-CanIslandContainerTerminalLtd | 33,289,037.77 | 82,625,546.31 |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | - | 50,000,000.00 |
| Others | 14,275,566.52 | 13,751,368.26 |
| Total | 258,395,604.29 | 459,812,334.57 |
| Less:Provisionforcreditloss | 258,395.60 | 459,812.33 |
| Bookvalue | 258,137,208.69 | 459,352,522.24 |
(2)Significantdividendreceivableagedmorethan1year
| Nameofinvestee | Closingbalance | Aging | Whyunrecovered | Closingbalanceofprovisionforcreditlosses |
| NanshanGroup | 140,554,000.00 | Morethan1yearbutnotexceeding2years | Undergoingrelevantformalitiesandexpectedtoberecoveredattheendof2021 | 140,554.00 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.3Dividendreceivable-continued
(3)Changesinprovisionforcreditlossofdividendsreceivable
| Item | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| At1January2020 | 459,812.33 | - | - | 459,812.33 |
| Carryingamountofdividendsreceivableat1January2020 | ||||
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | - | - | - | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionfortheyear | - | - | - | - |
| Reversalfortheyear | -201,416.73 | - | - | -201,416.73 |
| Transfer-outonderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | - | - |
| At31December2020 | 258,395.60 | - | - | 258,395.60 |
7.4Otherreceivables
(1)Otherreceivablesdisclosedbyaging
| Aging | Closingbalance | ||
| Otherreceivables | Provisionforcreditloss | Proportion(%) | |
| Within1year | 2,490,939,969.22 | 833.00 | - |
| Morethan1yearbutnotexceeding2years | 966,120,027.06 | 306,461,787.82 | 31.72 |
| Morethan2yearsbutnotexceeding3years | 13,122,683.91 | 81,664.02 | 0.62 |
| Morethan3years | 350,606,928.00 | 215,187,070.78 | 61.38 |
| Total | 3,820,789,608.19 | 521,731,355.62 | |
(2)Disclosureofotherreceivablesbynature
| Item | Closingbalance | Openingbalance |
| Landcompensation(Note1) | 2,742,032,000.00 | 521,246,000.00 |
| Operationcompensation(Note2) | 687,057,815.03 | 669,121,539.36 |
| Temporarypayments | 159,559,495.82 | 334,617,193.32 |
| Compensationforprofitorlossontransition | 38,312,376.24 | 35,317,035.66 |
| Deposits | 20,162,834.12 | 21,309,320.77 |
| Others | 173,665,086.98 | 124,618,962.15 |
| Total | 3,820,789,608.19 | 1,706,230,051.26 |
| Less:Provisionforcreditloss | 521,731,355.62 | 36,364,115.48 |
| Bookvalue | 3,299,058,252.57 | 1,669,865,935.78 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.4Otherreceivables-continued(2)Disclosureofotherreceivablesbynature-continuedNote1:On5November2019,ShantouChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoas"Shantou
Port")enteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately
370.96mulocatedinZhuchiDeepwaterPortonthesouthofZhongshanEastRoadofShantoushouldbereturnedtoShantouLandReserveCenterbyShantouPort,whichisamountingtoRMB1,558,032,000.00.Amongthem,183.63muoflandhavebeentransferredin2020andattachedbuildingsweretransferredin2019,andtheremaining187.33muoflandandattachedbuildingshasbeentransferredin2020,withthecarryingamountofRMB188,404,228.34andtheconsiderationofcompensationofapproximatelyRMB786,786,000.00.Afterdeductionoftransactioncosts,thegainsoncompensationwererecognizedinRMB561,650,519.31.Asat31December2020,thelandcompensationtotallingRMB1,208,032,000.00hasnotyetbeenrecovered.On21August2020,ShantouPortenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithLandReserveCenterofShantouHaojiangDistrict.Pursuanttothecontract,thelandandattachedbuildingsofapproximately152.34mulocatedinYutianwen,Queshi,HaojiangDistrict,Shantou,shouldbereturnedtoLandReserveCenterofShantouHaojiangDistrictbyShantouPort,whichisamountingtoRMB250,000,000.00.Thetransferofabove-mentionedlandandattachedbuildingswascompletedbefore31December2020,withthenetbookvalueofRMB163,735,397.39.Afterdeductionoftransactioncosts,thegainsoncompensationwererecognizedinRMB57,521,085.00.Asat31December2020,thelandcompensationtotallingRMB200,000,000.00hasnotyetbeenrecovered.On22December2020,ShantouPortenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately648.78mulocatedinZhuchiDeepwaterPortofShantoushouldbereturnedtoShantouLandReserveCenterbyShantouPort,whichisamountingtoRMB2,724,876,000.00.Amongthem,320muoflandandattachedbuildingsweretransferredby31December2020,withthecarryingamountofRMB356,612,428.85andtheconsiderationofcompensationisRMB1,344,000,000.00.Afterdeductionoftransactioncosts,thegainsoncompensationwererecognizedinRMB912,690,740.68.Asat31December2020,thelandcompensationtotallingRMB1,334,000,000.00hasnotyetbeenrecovered,andtheremaining328.78muoflandandattachedbuildingshavenotbeentransferred,whicharepresentedasassetsheldforsalebytheGroup.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.4Otherreceivables-continued(2)Disclosureofotherreceivablesbynature-continuedNote2:ItistheoperationcompensationamountingtoRMB687,057,815.03thatthesubsidiariesoftheCompany
shouldcollectfromtheholdingcompaniesofminorityshareholders.Theaforesaidamounthasbeenoverdue.Therefore,theGroupmadeacorrespondingcreditimpairmentlossofRMB477,037,952.97.
(3)Provisionforcreditlossonotherreceivables
AspartoftheGroup'screditriskmanagement,theGroupconductsinternalcreditratingsforitscustomersanddeterminestheexpectedlossrateforotherreceivablesforeachrating.Suchexpectedaveragelossratesarebasedonactualhistoricalimpairmentsandtakingintoaccountthecurrentandfutureeconomicconditions.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.4Otherreceivables-continued
(3)Provisionforcreditlossonotherreceivables-continuedAsat31December2020,thecreditriskandexpectedcreditlossofotherreceivablesofeachcategoryofcustomersarepresentedasbelow:
| Creditrating | Expectedcreditlossrate(%) | Closingbalance | Openingbalance | ||||||
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | Total | Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | Total | ||
| A | 0.00-0.10 | 3,098,532,380.95 | - | - | 3,098,532,380.95 | 1,669,968,696.05 | - | - | 1,669,968,696.05 |
| B | 0.10-0.30 | - | - | - | - | - | - | - | - |
| C | 0.30-50.00 | - | - | - | - | - | - | - | - |
| D | 50.00-100.00 | - | - | 722,257,227.24 | 722,257,227.24 | - | - | 36,261,355.21 | 36,261,355.21 |
| Accountbalance | 3,098,532,380.95 | - | 722,257,227.24 | 3,820,789,608.19 | 1,669,968,696.05 | - | 36,261,355.21 | 1,706,230,051.26 | |
| Provisionforcreditloss | 95,128.38 | - | 521,636,227.24 | 521,731,355.62 | 102,760.27 | - | 36,261,355.21 | 36,364,115.48 | |
| Bookvalue | 3,098,437,252.57 | - | 200,621,000.00 | 3,299,058,252.57 | 1,669,865,935.78 | - | - | 1,669,865,935.78 | |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.4Otherreceivables-continued
(4)Changesinprovisionforcreditlossofotherreceivables
| Item | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| At1January2020 | 102,760.27 | - | 36,261,355.21 | 36,364,115.48 |
| Carryingamountofotherreceivablesat1January2020 | ||||
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | -17,528.45 | - | 17,528.45 | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionfortheyear | 66,893.25 | - | 477,037,952.97 | 477,104,846.22 |
| Reversalfortheyear | -56,996.69 | - | -1,081,532.21 | -1,138,528.90 |
| Transfer-outonderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | 9,400,922.82 | 9,400,922.82 |
| At31December2020 | 95,128.38 | - | 521,636,227.24 | 521,731,355.62 |
(5)Intheperiodfrom1January2020to31December2020,theGrouphasnootherreceivableswrittenoff.
(6)Thetopfivebalancesofotherreceivablesattheendoftheyearclassifiedbydebtor
| Nameofentity | Nature | Closingbalance | Aging | Proportionoftheamounttotheotherreceivable(%) | Provisionforcreditlossattheendoftheyear |
| Entity1 | Landcompensation | 2,542,032,000.00 | Within1year,morethan1yearbutnotexceeding2years | 66.53 | 39,052.09 |
| Entity2 | Operationcompensation | 687,057,815.03 | morethan1yearbutnotexceeding2years,morethan3years | 17.98 | 486,432,815.03 |
| Entity3 | Landcompensation | 200,000,000.00 | Within1year | 5.23 | 3072.51 |
| Entity4 | Temporarypayments | 57,607,520.00 | Morethan3years | 1.51 | 5,760.75 |
| Entity5 | Temporarypayments | 43,551,875.85 | Morethan5years | 1.14 | 4,355.19 |
| Total | 3,530,249,210.88 | 92.39 | 486,485,055.57 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
8.Inventories
(1)Categoriesofinventories
| Item | Closingbalance | OpeningBalance | ||||
| Carryingamount | Provisionfordeclineinvalueofinventories | Bookvalue | Carryingamount | Provisionfordeclineinvalueofinventories | Bookvalue | |
| Rawmaterials | 168,127,613.81 | 884,061.15 | 167,243,552.66 | 147,548,980.01 | 1,918,890.33 | 145,630,089.68 |
| Finishedgoods | 31,606,387.22 | - | 31,606,387.22 | 4,944,593.66 | - | 4,944,593.66 |
| Revolvingmaterials | - | - | - | - | - | - |
| Others | 12,516,519.00 | - | 12,516,519.00 | 13,405,508.74 | - | 13,405,508.74 |
| Total | 212,250,520.03 | 884,061.15 | 211,366,458.88 | 165,899,082.41 | 1,918,890.33 | 163,980,192.08 |
(2)Provisionfordeclineinvalueofinventories
| Item | 1January2020 | Provision | Decrease | 31December2020 | |
| Reversal | Write-off | ||||
| Rawmaterials | 1,918,890.33 | - | 947,694.12 | 87,135.06 | 884,061.15 |
(3)Asat31December2020,theGrouphasnocapitalizedborrowingcostin
thebalanceofinventories.
9.Assetsheldforsale
| Item | Carryingamountatclosingbalance | Fairvalueatclosingbalance | Estimateddisposalexpenses | Schedule |
| Long-termassetsheldforsale | 337,442,757.28 | 1,380,876,000.00 | 5,608,306.69 | Before30June2021 |
| Less:Provisionforimpairmentofassetsheldforsale | - | |||
| Carryingamount | 337,442,757.28 |
Note:RefertoNote(V)7.4(2)fordetails.
10.Non-currentassetsduewithinoneyear
| Item | Closingbalance | Openingbalance |
| Long-termreceivablesduewithinoneyear | 67,760,233.67 | 809,702,715.78 |
| Less:Provisionforcreditloss | 67,760.23 | 809,702.72 |
| Carryingamount | 67,692,473.44 | 808,893,013.06 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
11.Othercurrentassets
(1)Categoriesofothercurrentassets
| Item | Closingbalance | Openingbalance |
| Structuraldeposits | 102,749,431.10 | 2,000,298,176.18 |
| Including:Principal | 100,000,000.00 | 1,991,000,000.00 |
| Interestreceivable | 2,749,431.10 | 9,298,176.18 |
| Prepaidtaxes | 47,556,756.97 | 31,612,381.68 |
| Others(Note) | 283,360,013.35 | 266,882,103.84 |
| Total | 433,666,201.42 | 2,298,792,661.70 |
| Less:Provisionforcreditloss | - | - |
| Bookvalue | 433,666,201.42 | 2,298,792,661.70 |
Note:It'smainlytheVATcreditsofdomesticsubsidiaries.
12.Long-termreceivables
(1)Detailsoflong-termreceivables
| Item | Closingbalance | Openingbalance | ||||
| Accountbalance | Provisionforcreditloss | Bookvalue | Accountbalance | Provisionforcreditloss | Bookvalue | |
| Principalandinterestofreceivablesforcooperation | 286,330,144.62 | 286,330.14 | 286,043,814.48 | 1,025,631,435.87 | 1,025,631.44 | 1,024,605,804.43 |
| Advancestoshareholders(Note) | 3,663,271,923.98 | 3,663,271.92 | 3,659,608,652.06 | 869,503,011.54 | 869,503.01 | 868,633,508.53 |
| Financingleasedeposits | 10,000,000.00 | 10,000.00 | 9,990,000.00 | 14,500,000.00 | 14,500.00 | 14,485,500.00 |
| Total | 3,959,602,068.60 | 3,959,602.06 | 3,955,642,466.54 | 1,909,634,447.41 | 1,909,634.45 | 1,907,724,812.96 |
| Less:Long-termreceivablesduewithin1year | 67,760,233.67 | 67,760.23 | 67,692,473.44 | 809,702,715.78 | 809,702.72 | 808,893,013.06 |
| Long-termreceivablesdueover1year | 3,891,841,834.93 | 3,891,841.83 | 3,887,949,993.10 | 1,099,931,731.63 | 1,099,931.73 | 1,098,831,799.90 |
Note:TheadditionthisyearismainlythepaymentmadebyDirectAchieveInvestmentsLimited,asubsidiaryof
theCompany,fortheacquisitionoftheterminal,onthebehalfofitsassociate,TerminalLinkSAS.Asat31December2020,thetotalprincipalandinterestareequivalenttoRMB2,797,354,060.41,pleaserefertoNote(V)13fordetails.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
12.Long-termreceivables-continued
(2)Provisionforcreditlossonlong-termreceivables
| Item | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| At1January2020 | 1,909,634.45 | - | - | 1,909,634.45 |
| Carryingamountofothercurrentassetsat1January2020 | ||||
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | - | - | - | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionfortheyear | 2,791,910.10 | - | - | 2,791,910.10 |
| Reversalfortheyear | -741,942.49 | - | - | -741,942.49 |
| Transfer-outonderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | - | - |
| At31December2020 | 3,959,602.06 | - | - | 3,959,602.06 |
(3)Asat31December2020,therearenolong-termreceivablesderecognized
duetothetransferoffinancialassets.
(4)Therearenoassetsandliabilitiesarisingfromthetransferor
continuinginvolvementoflong-termreceivablesat31December2020.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
13.Long-termequityinvestments
| Investees | Accountingmethod | 1January2020 | Changesfortheyear | 31December2020 | Closingbalanceofprovisionforimpairment | ||||||||
| Increase | Decrease | Investmentprofitunderequitymethod | Reconcilingitemsfromothercomprehensiveincome | Otherequitymovements | Cashdividendsorprofitsannouncedofissuance | Others | Provisionforimpairment | Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies | |||||
| I.Jointventures | |||||||||||||
| Euro-AsiaOceangateS.àr.l. | Equitymethod | 2,635,767,875.28 | - | - | 71,938,690.26 | - | - | - | - | - | -174,410,003.58 | 2,533,296,561.96 | - |
| PortofNewcastle | Equitymethod | 2,199,996,246.66 | - | - | -7,767,864.73 | 5,561,700.43 | - | -106,920,517.08 | - | - | 58,179,379.39 | 2,149,048,944.67 | - |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Equitymethod | 1,504,764,906.58 | - | - | 102,594,175.95 | - | - | -100,000,000.00 | - | - | - | 1,507,359,082.53 | - |
| NingboDaxieMerchantsInternationalTerminalsCo.,Ltd.(hereinafterreferredtoas"NingboDaxie")(Note1) | Equitymethod | 853,995,291.23 | - | - | 112,101,331.18 | - | 3,703,504.36 | - | -969,800,126.77 | - | - | - | - |
| YantaiPortGroupLaizhouPortCo.,Ltd.(formerlyknownas"ChinaOverseasHarbourAffairs(Laizhou)Co.,Ltd.") | Equitymethod | 792,062,228.58 | - | - | 24,750,032.44 | - | - | -33,980,174.52 | - | - | - | 782,832,086.50 | - |
| FujianZhaohangLogisticsManagementPartnership(limitedpartnership)("ZhaohangLogistics")(Note2 | Equitymethod | - | 450,000,000.00 | - | 2,283,105.00 | - | - | - | - | - | - | 452,283,105.00 | - |
| Others | Equitymethod | 1,405,640,017.89 | - | - | 52,096,085.60 | 19,869,062.92 | -1,978.10 | -20,835,178.59 | - | - | -20,844,084.29 | 1,435,923,925.43 | - |
| Subtotal | 9,392,226,566.22 | 450,000,000.00 | - | 357,995,555.70 | 25,430,763.35 | 3,701,526.26 | -261,735,870.19 | -969,800,126.77 | - | -137,074,708.48 | 8,860,743,706.09 | - | |
| II.Associates | |||||||||||||
| ShanghaiInternationalPort(Group)Co.,Ltd. | Equitymethod | 23,918,042,867.55 | - | - | 2,234,593,249.98 | 142,216,652.43 | -37,597,358.33 | -899,371,516.97 | - | - | 3,899,286.75 | 25,361,783,181.41 | - |
| NanshanGroup | Equitymethod | 5,090,137,515.66 | - | - | 424,745,838.41 | -18,284,905.75 | -31,623,552.67 | -74,028,000.00 | - | - | - | 5,390,946,895.65 | - |
| TerminalLinkSAS(Note3) | Equitymethod | 4,212,404,575.41 | 2,746,841,398.03 | - | 312,427,210.29 | -33,697,616.56 | - | - | - | - | -434,422,522.26 | 6,803,553,044.91 | - |
| LiaoningPortCo.,Ltd.(formerlyknownas"DalianPort(PDA)CompanyLimited"andrenamedon28January2021) | Equitymethod | 3,293,260,555.78 | - | - | 169,692,898.03 | 2,865,701.41 | 7,108,981.80 | -57,009,456.00 | - | - | 40,045,832.60 | 3,455,964,513.62 | 621,818,684.80 |
| ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd. | Equitymethod | 6,841,066,224.12 | - | - | 335,639,784.43 | - | - | - | - | - | - | 7,176,706,008.55 | - |
| NingboZhoushanPortCompanyLimited(Note4) | Equitymethod | - | - | - | - | - | - | - | 3,098,292,286.95 | - | - | 3,098,292,286.95 | - |
| ChinaMerchantsNortheastAsiaDevelopment&InvestmentCo.,Ltd.(Note5) | Equitymethod | - | 1,000,000,000.00 | - | 7,786,285.71 | - | - | - | - | - | - | 1,007,786,285.71 | - |
| Others | Equitymethod | 5,169,401,078.52 | 70,665,700.00 | -92,584,800.00 | 146,036,140.53 | 70,804,284.42 | 72,409,190.38 | -75,291,321.55 | - | - | -285,292,771.74 | 5,076,147,500.56 | - |
| Subtotal | 48,524,312,817.04 | 3,817,507,098.03 | -92,584,800.00 | 3,630,921,407.38 | 163,904,115.95 | 10,297,261.18 | -1,105,700,294.52 | 3,098,292,286.95 | - | -675,770,174.65 | 57,371,179,717.36 | 621,818,684.80 | |
| Total | 57,916,539,383.26 | 4,267,507,098.03 | -92,584,800.00 | 3,988,916,963.08 | 189,334,879.30 | 13,998,787.44 | -1,367,436,164.71 | 2,128,492,160.18 | - | -812,844,883.13 | 66,231,923,423.45 | 621,818,684.80 | |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
13.Long-termequityinvestments-continuedNote1:RefertoNote(VI)1fordetails.Note2:InSeptember2020,theCompanyenteredintolimitedpartnershipagreementswithAVICTrustCo.,Ltd.,
QuanzhouTransportationDevelopmentPropertyInvestmentCo.,Ltdetc.Undertheseagreements,theCompanyinvestedRMB450milliontoparticipateintheestablishmentofZhaohangLogistics.Asalimitedpartner,theCompanycanappointoneofthefivemembersofthemanagementcommittee.Accordingtotheprovisionsofthelimitedpartnershipagreement,ZhaohangLogisticswillbecontrolledbyallthepartnersjointly.Note3:On25November2019,thesubsidiaryoftheCompany,ChinaMerchantsPortHoldingsCompany
("CMPort")hassignedtheshareholders’agreementwiththeassociateTerminalLinkSASanditsshareholderCMACGMS.A.Accordingtothisagreement,CMPortintendstosubscribeformandatoryconvertiblebondsofUSD468millionandgrantaloanfacilityofUSD500milliontoTerminalLinkSASinordertosupportTerminalLinkSAS'acquisitionplanof10targetterminals.On26March2020,theCompanysubscribedmandatoryconvertiblebonds,equivalenttoRMB2,746,841,398.03.Meanwhile,DirectAchieveInvestmentsLimited,asubsidiaryoftheCompany,providedalong-termloantoTerminalLinkSASfortheterminalacquisitionprojectandchargedinteresttoTerminalLinkSASataninterestrateof6%.Asof31December2020,theCompany'slong-termreceivableofaggregateprincipalandinterestfromTerminalLinkSAS,equivalenttoRMB2,797,354,060.41.Note4:TheCompanyacquired383millionsharesofNingboZhoushanPortCompanyLimitedwithitsownfunds
throughcentralizedbiddingontheShanghaiStockExchangeduringtheyear.Asof31December2020,theCompanyandChinaMerchantsInternationalTerminals(Ningbo)Co.,Ltd.,asubsidiaryoftheCompany,heldatotalof5%equityinterestinNingboZhoushanPortCompanyLimitedandcouldappointonedirectoramongthe12membersoftheboardofdirectors.Therefore,theCompanyhassignificantinfluenceonNingboZhoushanPortCompanyLimitedAndthecompanywouldchangeitsequityinvestmentinNingboZhoushanfromotherequityinstrumentinvestmenttolong-termequityinvestmentinassociatesNote5:On3April2020,theCompanyenteredintoajointinvestmentagreementwithLiaoningPortGroupCo.,
Ltd.andChinaMerchantsShekouHoldingsCo.,Ltd.,pursuanttowhichtheCompanyinvestedRMB1billiontoparticipateintheestablishmentofChinaMerchantsNortheastAsiaDevelopment&InvestmentCo.,Ltd.,witha22.22%shareholding,andmayappointonedirectoramongthefivemembersoftheboardofdirectors.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
14.Investmentsinotherequityinstruments
(1)Detailsofinvestmentsinotherequityinstruments
| Investees | Closingbalance | Openingbalance |
| ChinaOceanShippingAgency(Shenzhen)Co.,Ltd. | 144,424,830.00 | 144,069,435.00 |
| Others | 37,042,227.74 | 19,491,837.00 |
| Total | 181,467,057.74 | 163,561,272.00 |
(2)Detailsofnon-tradingequityinstruments
| Item | Dividendsincomerecognizedfortheyear | Accumulatedgains/losses | Amountstransferredtoretainedearningsfromothercomprehensiveincome | WhydesignatedasFVTOIC | Whytransferredtoretainedearningsfromothercomprehensiveincome |
| ChinaOceanShippingAgency(Shenzhen)Co.,Ltd. | 7,891,500.00 | 130,914,830.00 | - | Theintentionofholdingisneitherforsalenorprofitsinshort-term | N/A |
| Others | 676,750.21 | 9,199,796.00 | - | Theintentionofholdingisneitherforsalenorprofitsinshort-term | N/A |
| Total | 8,568,250.21 | 140,114,626.00 | - |
15.Othernon-currentfinancialassets
| Item | Closingbalance | Openingbalance |
| FinancialassetsatFVTPL | 910,807,452.56 | 2,385,363,537.39 |
| Including:Investmentsinequityinstruments | 910,807,452.56 | 2,385,363,537.39 |
| Including:NingboZhoushanPortCo.,Ltd.(Note) | - | 1,548,914,671.20 |
| QingdaoPortInternationalCo.,Ltd. | 886,385,139.77 | 820,263,917.11 |
| Others | 24,422,312.79 | 16,184,949.08 |
Note:RefertoNote(V)13fordetails.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
16.Investmentproperties
(1)Investmentpropertiesmeasuredundercostmethod
| Item | Landuserights | Buildingsandstructures | Total |
| I.Totaloriginalcarryingamount | |||
| 1.Balanceat1January2020 | 105,727,492.82 | 6,291,738,452.02 | 6,397,465,944.84 |
| 2.Increasefortheyear | - | 206,574.38 | 206,574.38 |
| (1)Purchase | - | 206,574.38 | 206,574.38 |
| 3.Decreasefortheyear | - | 13,724,755.35 | 13,724,755.35 |
| (1)Disposal | - | 1,071,645.35 | 1,071,645.35 |
| (2)Transfertoheld-for-sale | - | 12,653,110.00 | 12,653,110.00 |
| 4.Balanceat31December2020 | 105,727,492.82 | 6,278,220,271.05 | 6,383,947,763.87 |
| II.Accumulateddepreciationandamortisation | |||
| 1.Balanceat1January2020 | 31,252,512.29 | 605,950,758.15 | 637,203,270.44 |
| 2.Increasefortheyear | 2,282,103.95 | 187,672,206.29 | 189,954,310.24 |
| (1)Provisionfortheyear | 2,282,103.95 | 187,672,206.29 | 189,954,310.24 |
| 3.Decreasefortheyear | - | 1,965,092.02 | 1,965,092.02 |
| (1)Disposal | - | 489,845.42 | 489,845.42 |
| (2)Transfertoheld-for-sale | - | 1,475,246.60 | 1,475,246.60 |
| 4.Balanceat1January2020 | 33,534,616.24 | 791,657,872.42 | 825,192,488.66 |
| III.Impairmentprovision | |||
| 1.Balanceat1January2020 | - | - | - |
| 2.Increasefortheyear | - | - | - |
| 3.Decreasefortheyear | - | - | - |
| 4.Balanceat31December2020 | - | - | - |
| IV.Bookvalue | |||
| 1.At31December2020 | 72,192,876.58 | 5,486,562,398.63 | 5,558,755,275.21 |
| 2.At1January2020 | 74,474,980.53 | 5,685,787,693.87 | 5,760,262,674.40 |
(2)Investmentpropertieswithoutownershipcertificates
| Item | Closingbalance | Openingbalance |
| Buildings,structures,andlanduserights | 19,256,400.05 | 40,255,588.09 |
17.Fixedassets
17.1Summaryoffixedassets
| Item | Closingbalance | Openingbalance |
| Fixedassets | 29,469,832,876.56 | 27,519,109,906.41 |
| Disposaloffixedassets | 1,750,748.00 | 852,622.88 |
| Total | 29,471,583,624.56 | 27,519,962,529.29 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
17.Fixedassets-continued
17.2Fixedassets
(1)Detailsoffixedassets
| Item | Portandterminalfacilities | Buildingsandstructures | Machineryandequipment,furnitureandfixtureandotherequipment | Motorvehiclesandcargoships | Total |
| I.Totaloriginalcarryingamount | |||||
| 1.Balanceat1January2020 | 26,835,227,578.81 | 1,619,692,941.54 | 13,688,077,920.51 | 2,039,216,861.04 | 44,182,215,301.90 |
| 2.Increasefortheyear | 4,524,798,470.75 | 369,350,604.72 | 2,213,225,703.62 | 164,937,079.91 | 7,272,311,859.00 |
| (1)Purchase | 71,684,688.10 | 700,802.12 | 114,357,577.13 | 13,029,518.26 | 199,772,585.61 |
| (2)Transferfromdevelopmentexpenditure | 1,408,916.16 | - | - | - | 1,408,916.16 |
| (3)Transferfromconstructioninprogress | 1,754,888,222.69 | 142,301,793.67 | 476,726,701.65 | 106,199,438.61 | 2,480,116,156.62 |
| (4)Transferfromright-of-useassets | - | - | 307,458,506.08 | 38,350,000.00 | 345,808,506.08 |
| (5)Effectofchangesinthescopeofconsolidation | 2,696,816,643.80 | 226,348,008.93 | 1,314,682,918.76 | 7,358,123.04 | 4,245,205,694.53 |
| 3.Decreasefortheyear | 718,395,304.50 | 47,101,576.44 | 380,761,375.46 | 28,965,159.53 | 1,175,223,415.93 |
| (1)Disposalorretirement | 445,859,279.24 | 15,456,387.45 | 295,286,035.68 | 28,965,159.53 | 785,566,861.90 |
| (2)Transfertoconstructioninprogress | 50,622,456.67 | 31,645,188.99 | 83,619,288.11 | - | 165,886,933.77 |
| (3)Transfertoheldforsaleassets(Note) | 221,913,568.59 | - | 1,856,051.67 | - | 223,769,620.26 |
| 4.Reclassification | 33,350,877.05 | -84,290,946.10 | 50,940,069.05 | - | - |
| 5.Effectofchangesinforeignexchange | -817,227,476.73 | -11,017,342.84 | -340,786,841.33 | -44,002,772.02 | -1,213,034,432.92 |
| 6.Balanceat31December2020 | 29,857,754,145.38 | 1,846,633,680.88 | 15,230,695,476.39 | 2,131,186,009.40 | 49,066,269,312.05 |
| II.Accumulateddepreciation | |||||
| 1.Balanceat1January2020 | 7,595,730,173.47 | 398,455,580.82 | 7,776,172,621.82 | 835,082,151.24 | 16,605,440,527.35 |
| 2.Increasefortheyear | 1,717,137,050.23 | 112,325,736.21 | 1,917,530,741.07 | 141,926,361.56 | 3,888,919,889.07 |
| (1)Provision | 834,686,032.22 | 66,028,685.87 | 803,408,657.69 | 107,037,420.27 | 1,811,160,796.05 |
| (2)Transferfromright-of-useassets | - | - | 170,414,913.99 | 29,164,345.13 | 199,579,259.12 |
| (3)Effectofchangesinthescopeofconsolidation | 882,451,018.01 | 46,297,050.34 | 943,707,169.39 | 5,724,596.16 | 1,878,179,833.90 |
| 3.Decreasefortheyear | 344,308,285.21 | 23,249,291.57 | 259,760,512.01 | 27,358,236.10 | 654,676,324.89 |
| (1)Disposalorretirement | 211,350,460.07 | 4,417,031.71 | 258,199,762.47 | 27,358,236.10 | 501,325,490.35 |
| (2)Transfertoconstructioninprogress | 24,461,742.42 | 18,832,259.86 | - | - | 43,294,002.28 |
| (3)Transfertoheldforsaleassets(Note) | 108,496,082.72 | - | 1,560,749.54 | - | 110,056,832.26 |
| 4.Reclassification | -5,413,861.57 | -17,320,060.74 | 22,733,922.31 | - | - |
| 5.Effectofchangesinforeignexchange | -130,349,585.98 | -2,208,633.67 | -158,886,817.90 | -9,330,036.71 | -300,775,074.26 |
| 6.Balanceat31December2020 | 883,2795,490.94 | 468,003,331.05 | 9,297,789,955.29 | 940,320,239.99 | 19,538,909,017.27 |
| III.Impairmentprovision | |||||
| 1.Balanceat1January2020 | 57,419,468.96 | - | 245,399.18 | - | 57,664,868.14 |
| 2.Increasefortheyear | - | - | - | - | - |
| 3.Disposalorretirementfortheyear | - | - | -137,449.92 | - | -137,449.92 |
| 4.Reclassifiedamountfortheyear | - | 63,906.47 | -63,906.47 | - | - |
| 5.Balanceat31December2020 | 57,419,468.96 | 63,906.47 | 44,042.79 | - | 57,527,418.22 |
| IV.Bookvalue | |||||
| 1.Bookvalueat31December2020 | 20,967,539,185.48 | 1,378,566,443.36 | 5,932,861,478.31 | 1,190,865,769.41 | 29,469,832,876.56 |
| 2.Bookvalueat1January2020 | 19,182,077,936.38 | 1,221,237,360.72 | 5,911,659,899.51 | 1,204,134,709.80 | 27,519,109,906.41 |
Note:RefertoNote(V)7.4fordetails.
(2)TheGrouphasnofixedassetsthataretemporarilyidleasat31December2020.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
17.Fixedassets-continued
17.2Fixedassets-continued
(3)Fixedassetsleasedoutunderoperatingleases
| Item | Bookvalueat31December2020 | Bookvalueat31December2019 |
| Buildingsandstructures | 291,567,507.17 | 312,602,129.37 |
| Portandterminalfacilities | 79,578,478.13 | 12,233,139.52 |
| Machineryandequipment,furnitureandfixtureandotherequipment | 8,646,797.33 | 63,964.98 |
| Commercialhousing | 4,757,652.18 | - |
| Motorvehiclesandcargoships | - | 17,754.72 |
| Total | 384,550,434.81 | 324,916,988.59 |
(4)Fixedassetswithoutownershipcertificates
| Item | Bookvalueat31December2020 | Bookvalueat31December2019 |
| Buildings,structures,portandterminalfacilities | 1,751,680,587.08 | 1,652,483,135.07 |
(5)Otherissues
| Item | Amount | Remark |
| Costoffixedassetsfullydepreciatedbutstillinuseattheendoftheyear | 3,939,760,874.98 | |
| Costoffixedassetstemporarilyidleattheendoftheyear | - | |
| Fixedassetsdisposedandretiredintheyear | ||
| Costoffixedassetsdisposedandretiredintheyear | 785,566,861.90 | |
| Netvalueoffixedassetsdisposedandretiredintheyear | 284,103,921.63 | |
| Lossondisposalorretirementoffixedassetsintheyear | -45,180,168.60 |
17.3Disposaloffixedassets
| Item | Closingbalance | Openingbalance |
| Machineryandequipment,furnitureandfixtureandotherequipment | 1,216,187.48 | 848,410.93 |
| Motorvehiclesandcargoships | 17,000.05 | 4,211.95 |
| Portandterminalfacilities | 517,560.47 | - |
| Total | 1,750,748.00 | 852,622.88 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
18.Constructioninprogress
18.1Summaryofconstructioninprogress
| Item | Closingbalance | Openingbalance |
| Constructioninprogress | 5,366,181,331.72 | 6,318,389,715.70 |
| Materialsforconstructionoffixedassets | 15,249,274.46 | 15,751,726.18 |
| Total | 5,381,430,606.18 | 6,334,141,441.88 |
18.2Constructioninprogress
(1)Detailsofconstructioninprogress
| Item | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionforimpairment | Bookvalue | Carryingamount | Provisionforimpairment | Bookvalue | |
| Portandterminalfacilities | 4,662,213,617.98 | - | 4,662,213,617.98 | 5,713,564,853.28 | 787,181.96 | 5,712,777,671.32 |
| Berthsandyards | 336,353,712.35 | - | 336,353,712.35 | 296,933,093.52 | - | 296,933,093.52 |
| Infrastructure | 197,699,601.64 | - | 197,699,601.64 | 175,423,610.37 | - | 175,423,610.37 |
| Shipunderconstruction | 58,674,526.32 | - | 58,674,526.32 | 80,042,167.50 | - | 80,042,167.50 |
| Others | 111,239,873.43 | - | 111,239,873.43 | 53,213,172.99 | - | 53,213,172.99 |
| Total | 5,366,181,331.72 | - | 5,366,181,331.72 | 6,319,176,897.66 | 787,181.96 | 6,318,389,715.70 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
18.Constructioninprogress-continued
18.2Constructioninprogress-continued
(2)Thetoptenbalancesofconstructioninprogress
| Item | Budgetamount | 1January2020 | Increasefortheyear | Transfertofixedassets | Otherdecreasesfortheyear | Effectofchangesinforeignexchange | 31December2020 | Proportionofaccumulatedconstructioninvestmentinbudget(%) | Constructionprogress(%) | Amountofaccumulatedcapitalizedinterest | Including:capitalizedinterestfortheyear | Interestcapitalizationrateforthecurrentyear(%) | Capitalsource |
| Reconstructionprojectofcontainer,oilterminalandtankarea,HIPG | 2,851,020,136.97 | 1,058,989,758.99 | 485,237,057.61 | - | - | - | 1,544,226,816.60 | 54.16 | 54.16 | 40,818,524.04 | 35,011,773.08 | 4.13 | Self-fundingandloan |
| HydraulicstructureengineeringforthereconstructionprojectofBerth1#-4#,HaixingTerminal | 2,639,607,386.75 | 1,407,055,802.30 | 143,384,534.55 | 85,936,753.07 | 405,379,918.39 | -72,157,673.43 | 986,965,991.96 | 56.00 | 56.00 | 537,530.59 | 537,530.59 | 2.55 | Self-fundingandloan |
| PhaseIIIprojectforthebulkgrainwarehousesatBerth2#and3#,MayongPortArea | 620,000,000.00 | 321,198,858.46 | 165,851,858.79 | - | - | - | 487,050,717.25 | 78.56 | 78.56 | 2,552,884.46 | 2,535,928.90 | 4.38 | Self-fundingandloan |
| GeneralcargoterminalprojectatDonghaiIslandPortAreaofZhanjiangPort | 737,792,300.00 | 234,308,909.02 | 230,330,096.08 | - | - | - | 464,639,005.10 | 62.98 | 62.98 | 14,018,717.36 | 11,153,244.13 | 4.79 | Self-fundingandloan |
| UniversalterminalprojectatXiashanPortAreaofZhanjiangPort | 905,348,400.00 | 254,545,729.28 | 112,037,664.03 | - | - | - | 366,583,393.31 | 40.49 | 40.49 | 31,484,883.79 | 10,995,102.59 | 4.79 | Self-fundingandloan |
| PhaseIreconstructionprojectfortheoldtankareaofthePetrochemicalDepartmentofZhanjiangPort | 218,378,500.00 | 178,983,632.92 | 3,485,964.32 | - | - | - | 182,469,597.24 | 83.56 | 83.56 | 5,024,262.73 | - | - | Self-fundingandloan |
| PhaseIexpansionprojectforthecontainerterminalatBaomanPortArea,ZhanjiangPort | 2,412,810,000.00 | 155,695,498.79 | 316,981.13 | - | - | - | 156,012,479.92 | 6.47 | 6.47 | 964,740.46 | - | - | Self-fundingandloan |
| PhaseIprojectforthestuffinganddestuffingserviceareaofBaomanPortArea,ZhanjiangPort | 606,521,505.83 | 134,029,761.00 | 3,045,453.56 | - | - | - | 137,075,214.56 | 22.60 | 22.60 | 16,689,500.56 | - | - | Self-fundingandloan |
| ReconstructionprojectforYard16#ofthebulkcargoterminal,ZhanjiangPort | 120,120,000.00 | 1,492,394.31 | 97,845,222.36 | - | - | - | 99,337,616.67 | 82.70 | 82.70 | - | - | - | Self-funding |
| Berth#1projectforShantouGuang'aoPortArea | 190,000,000.00 | - | 68,846,809.70 | - | - | - | 68,846,809.70 | 36.24 | 36.24 | 298,799.22 | 298,799.22 | 4.79 | Self-fundingandloan |
| Total | 11,301,598,229.55 | 3,746,300,345.07 | 1,310,381,642.13 | 85,936,753.07 | 405,379,918.39 | -72,157,673.43 | 4,493,207,642.31 | 112,389,843.21 | 60,532,378.51 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
18.Constructioninprogress-continued
18.3Materialsforconstructionoffixedassets
| Item | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionforimpairment | Bookvalue | Carryingamount | Provisionforimpairment | Bookvalue | |
| Materialsforconstructionoffixedassets | 15,249,274.46 | - | 15,249,274.46 | 15,751,726.18 | - | 15,751,726.18 |
19.Right-of-useassets
(1)Detailsofright-of-useassets
| Item | Portandterminalfacilities | Buildingsandstructures | Machineryandequipment,furnitureandfixtureandotherequipment | Motorvehiclesandcargoships | Others | Total |
| I.Cost | ||||||
| 1.Balanceat1January2020 | 6,689,402,526.61 | 186,206,419.38 | 767,725,299.95 | 45,970,740.24 | 2,846,079,467.04 | 10,535,384,453.22 |
| 2.Increasefortheyear | 484,770,470.31 | 11,433,840.25 | 7,672,321.67 | - | 2,673,929.81 | 506,550,562.04 |
| (1)Purchase | 484,770,470.31 | 11,433,840.25 | 7,672,321.67 | - | 2,673,929.81 | 506,550,562.04 |
| 3.Decreasefortheyear | 23,874,770.86 | 28,210,371.94 | 309,391,492.48 | 38,350,000.00 | 4,302,156.07 | 404,128,791.35 |
| (1)Terminationoflease | 23,874,770.86 | 28,210,371.94 | 309,391,492.48 | 38,350,000.00 | 4,302,156.07 | 404,128,791.35 |
| 4.Effectofchangesinforeignexchange | -377,928,574.94 | -8,767,271.15 | 2,616.89 | - | -182,308,916.92 | -569,002,146.12 |
| 5.Balanceat31December2020 | 6,772,369,651.12 | 160,662,616.54 | 466,008,746.03 | 7,620,740.24 | 2,662,142,323.86 | 10,068,804,077.79 |
| II.Accumulateddepreciation | ||||||
| 1.Balanceat1January2020 | 378,840,364.31 | 36,980,701.16 | 231,571,742.64 | 30,948,956.19 | 223,717,298.46 | 902,059,062.76 |
| 2.Increasefortheyear | 238,125,255.25 | 19,582,502.81 | 50,762,871.87 | 1,958,694.54 | 45,315,531.18 | 355,744,855.65 |
| (1)Provision | 238,125,255.25 | 19,582,502.81 | 50,762,871.87 | 1,958,694.54 | 45,315,531.18 | 355,744,855.65 |
| 3.Decreasefortheyear | 7,197,030.47 | 25,070,374.43 | 172,347,900.39 | 29,164,345.13 | 4,159,351.13 | 237,939,001.55 |
| (1)Terminationoflease | 7,197,030.47 | 25,070,374.43 | 172,347,900.39 | 29,164,345.13 | 4,159,351.13 | 237,939,001.55 |
| 4.Effectofchangesinforeignexchange | -21,008,481.15 | -1,077,275.10 | -682,790.90 | - | -15,508,009.52 | -38,276,556.67 |
| 5.Balanceat31December2020 | 588,760,107.94 | 30,415,554.44 | 109,303,923.22 | 3,743,305.60 | 249,365,468.99 | 981,588,360.19 |
| III.Impairmentprovision | ||||||
| 1.Balanceat1January2020 | - | - | - | - | - | - |
| 2.Increasefortheyear | - | - | - | - | - | - |
| 3.Decreasefortheyear | - | - | - | - | - | - |
| 4.Balanceat31December2020 | - | - | - | - | - | - |
| IV.Bookvalue | ||||||
| 1.Bookvalueat31December2020 | 6,183,609,543.18 | 130,247,062.10 | 356,704,822.81 | 3,877,434.64 | 2,412,776,854.87 | 9,087,215,717.60 |
| 2.Bookvalueat1January2020 | 6,310,562,162.30 | 149,225,718.22 | 536,153,557.31 | 15,021,784.05 | 2,622,362,168.58 | 9,633,325,390.46 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
19.Right-of-useassets-continued
(2)Amountrecognizedinprofitorloss
| Category | Amountincurredintheyear |
| Depreciationexpensesofright-of-useassets(Note1) | 355,744,855.65 |
| Interestexpensesonleaseliabilities(Note2) | 99,173,836.07 |
| Expensesforshort-termleases | 63,007,327.53 |
| Expensesforleasesoflowvalueassets | 139,397.25 |
| Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities(Note3) | - |
| Revenuefromsubleaseofright-of-useassets | 19,006,077.17 |
Note1:In2020,nodepreciationexpensesofright-of-useassetsiscapitalized.Note2:In2020,nointerestexpensesofleaseliabilitiesarecapitalized.Note3:In2020,novariableleasepaymentswereincludedinthemeasurementofleaseliabilities.
(3)Thetotalcashoutflowsinrelationtoleasesforthecurrentyear
amounttoRMB512,864,681.32.
(4)TheleasetermsoftheleaseassetsoftheGroupareasfollows:
| Category | Leaseterm |
| Portandterminalfacilities | 1-99years |
| Buildingsandstructures | 1-5years |
| Machineryandequipment,furnitureandfixtureandotherequipment | 1-6years |
| Motorvehiclesandcargoships | 5years |
| Others | 1-35years |
(5)TheGrouphasanoptiontopurchaseportandterminalfacilities,
machineryandequipmentandcargoshipsattheendoftheextensionperiodataratethatisbelowmarketrates.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
20.Intangibleassets
(1)Detailsofintangibleassets
| Items | Landuserights(Note2) | Terminalmanagementrights | Others | Total |
| I.Totaloriginalcarryingamount | ||||
| 1.Balanceat1January2020 | 13,324,673,654.68 | 10,223,755,868.87 | 1,148,257,126.44 | 24,696,686,649.99 |
| 2.Increasefortheyear | 1,242,316,513.14 | 103,112,803.75 | 121,314,553.21 | 1,466,743,870.10 |
| (1)Purchase | 588,985.17 | 103,112,803.75 | 61,993,003.31 | 165,694,792.23 |
| (2)Effectofchangesinthescopeofconsolidation | 1,241,727,527.97 | - | 46,191,467.18 | 1,287,918,995.15 |
| (3)Otherincrease | - | - | 13,130,082.72 | 13,130,082.72 |
| 3.Decreasefortheyear | 621,368,889.28 | 7,368,180.44 | 2,304,520.38 | 631,041,590.10 |
| (1)Disposal | 376,891,493.94 | - | 2,165,163.07 | 379,056,657.01 |
| (2)Transfertoheld-for-saleassets(Note1) | 243,458,641.73 | - | - | 243,458,641.73 |
| (3)Otherdecrease | 1,018,753.61 | 7,368,180.44 | 139,357.31 | 8,526,291.36 |
| 4.Effectofchangesinforeignexchange | -20,217,599.85 | -1,323,287,930.95 | -166,921,137.02 | -1,510,426,667.82 |
| 5.Balanceat31December2020 | 13,925,403,678.69 | 8,996,212,561.23 | 1,100,346,022.25 | 24,021,962,262.17 |
| II.Accumulatedamortization | ||||
| 1.Balanceat1January2020 | 3,161,151,683.32 | 1,481,484,521.65 | 360,334,890.92 | 5,002,971,095.89 |
| 2.Increasefortheyear | 326,872,826.32 | 230,075,828.24 | 94,373,946.52 | 651,322,601.08 |
| (1)Provision | 310,861,507.98 | 230,075,828.24 | 68,603,128.84 | 609,540,465.06 |
| (2)Effectofchangesinthescopeofconsolidation | 16,011,318.34 | - | 25,770,817.68 | 41,782,136.02 |
| (3)Otherincrease | - | - | - | - |
| 3.Decreasefortheyear | 79,084,466.90 | - | 2,220,063.91 | 81,304,530.81 |
| (1)Disposal | 47,911,526.84 | - | 2,165,163.07 | 50,076,689.91 |
| (2)Transfertoheld-for-saleassets(Note1) | 30,906,535.82 | - | - | 30,906,535.82 |
| (3)Otherdecrease | 266,404.24 | - | 54,900.84 | 321,305.08 |
| 4.Effectofchangesinforeignexchange | -9,473,349.26 | -267,559,789.29 | -40,085,929.25 | -317,119,067.80 |
| 5.Balanceat31December2020 | 3,399,466,693.48 | 1,444,000,560.60 | 412,402,844.28 | 5,255,870,098.36 |
| III.Impairmentprovision | ||||
| 1.Balanceat1January2020 | - | - | - | - |
| 2.Increasefortheyear | - | - | - | - |
| 3.Decreasefortheyear | - | - | - | - |
| 4.Balanceat31December2020 | - | - | - | - |
| IV.Bookvalue | ||||
| 1.Bookvalueat31December2020 | 10,525,936,985.21 | 7,552,212,000.63 | 687,943,177.97 | 18,766,092,163.81 |
| 2.Bookvalueat1January2020 | 10,163,521,971.36 | 8,742,271,347.22 | 787,922,235.52 | 19,693,715,554.10 |
Note1:RefertoNote(V)7.4fordetails.Note2:TheGroupobtainedthelanduserightsofberthsandyardscoveringanareaof1,049,946.00m
inChiwanPortAreafromNanshanGroup(theplotiswithinChiwanwatershed,includingalandof2.2km
investedbytheshareholderofNanshanGroup--ShenzhenInvestmentHoldingsCo.,Ltd.inNanshanGroupasitscontribution,andtheplotformedfrommarinereclamationbyNanshanGroup),whoseoriginalcostisRMB1,400,288,984.00andusefullifeis20-50years.Amongthem,thelanduserightsforanareaof270,692.00m
(whoseoriginalcostisRMB122,623,476.00)wereinvestedNanshanGroupintheCompanyasitscontributionandtherestlanduserightswereacquiredbytheGroupfromNanshanGroupthroughlong-termlease.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
20.Intangibleassets-continued
(1)Detailsofintangibleassets-continued
Note2:-continued
Atpresent,sinceNanshanGrouphaven'tobtainedthelanduserightsofthelandwithintheChiwanwatershed,includingthelandprovidedbyNanshanGroupthroughinvestmentcontributionandlease,theGroupcannotobtaintheownershipcertificatesfortherelevantlandandthebuildingsandstructuresontheaforesaidland.On20March2001,18June2003,29September2004,and2July2020,NanshanGroupmadethefollowingcommitmentsforallthelanduserightsthatithadobtainedonthedates:NanshanGroupwillirrevocablyandunconditionallyagreethat,suchlanduserightsbelongtotheGroup.IftheGroupsufferanyloss,orshallbearexpensesandliabilities,orissubjecttoanyclaimforcompensation,orisinvolvedinanylawsuitduetoanyactualorpotentialillegalityandunenforceabilityofanylanduseagreementthatissignedorwillbesignedbytheGroup,NanshanGroupundertakesthat,thetransfereesofsuchlanduserightsandtheirsuccessorsshallbesufficientlyheldharmless.Therefore,themanagementoftheCompanyholdsthattherelevantassetshavenosignificantimpairmentriskalthoughtherelevantownershipcertificatesarenotobtainedandtheGroupwillnothaveanymajorcontingentliabilitiesbecauseofthat.ThemanagementoftheCompanyhasbeenawareofthatNanshanGroupisactivelynegotiatingwiththerelevantgovernmentauthoritiesabouttheoutstandingissuesoftherelatedland.Currently,thedatewhentheGroupcanobtaintheownershipcertificatesfortherelevantlandandbuildingsandstructuresonthelandcannotbereliablyestimated.Asat31December2020,theleaseagreementforthelanduserightsof194,293.90m2landamongtheaforesaidland(theoriginalcostofwhichisRMB137,749,984.16)hasexpired.
(2)Landuserightswithoutownershipcertificateson31December2020:
| Item | Bookvalueatthisyearend | Bookvalueatlastyearend |
| Landuserights | 1,051,555,795.12 | 1,163,098,978.96 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
21.Developmentexpenses
| Item | 1/1/2020 | Increaseinthecurrentyear | Decreaseinthecurrentyear | 31.12/2020 | ||
| Transfertointangibleassets | Transfertofixedassets | Transfertoprofitorlossfortheyear | ||||
| CTOSupgrading | - | 71,725,843.56 | - | - | 71,725,843.56 | - |
| Developmentandapplicationofautomaticcontrolsystemsforheavyoil,diesel,gasoline,andmethanolprocesses | 4,834,850.03 | 14,855,085.10 | - | - | - | 19,689,935.13 |
| "ChinaMerchantsChip"ICTintegratedR&Dfortheautomaticandsemi-automaticcontainerterminal(subsystemoftheHaixingProject) | - | 14,440,326.99 | - | - | 14,440,326.99 | - |
| CustomsClearancePlatformforCombinedPortsofShenzhen | - | 16,886,500.00 | - | - | 16,886,500.00 | - |
| TheR&Dandimplementationprojectforthe"ChinaMerchantsChip"CloudSmartPlatformV1.0(forbulkcargos) | - | 5,021,649.98 | - | - | 5,021,649.98 | - |
| Keytechnicalresearchforthedeviceusedtoloadcrudeoiltoatrain | 15,830,956.74 | 4,825,168.41 | - | - | - | 20,656,125.15 |
| Dustsuppressiondeviceforbulkgrains(RD201904) | - | 3,152,932.65 | - | - | 3,152,932.65 | - |
| Others | 16,733,285.51 | 53,364,165.96 | - | 1,408,916.16 | 44,796,860.36 | 23,891,674.95 |
| Total | 37,399,092.28 | 184,271,672.65 | - | 1,408,916.16 | 156,024,113.54 | 64,237,735.23 |
22.Goodwill
(1)Carryingamountofgoodwill
| Investee | 1/1/2020 | Increase | Decrease | Amountofchangesinforeignexchange | 31/12/2020 |
| TCPParticipa??esS.A.("TCP") | 3,546,466,476.18 | - | - | -983,899,222.44 | 2,562,567,253.74 |
| MegaShekouContainerTerminalsLimited | 1,815,509,322.42 | - | - | - | 1,815,509,322.42 |
| ChinaMerchantsPortHoldings | 993,992,000.00 | - | - | - | 993,992,000.00 |
| ShantouPort | 552,317,736.65 | - | - | - | 552,317,736.65 |
| ZhanjiangPort(Group)Co.,Ltd.("ZhanjiangPort") | 418,345,307.68 | - | - | - | 418,345,307.68 |
| ShenzhenMawanProject | 408,773,001.00 | - | - | - | 408,773,001.00 |
| NingboDaxie(Note) | - | 188,497,194.41 | - | - | 188,497,194.41 |
| Others | 288,255,850.88 | - | - | - | 288,255,850.88 |
| Total | 8,023,659,694.81 | 188,497,194.41 | - | -983,899,222.44 | 7,228,257,666.78 |
Note:TheadditioninthisyearrepresentsthegoodwillarisingfromtheGroup'sacquisitionofNingboDaxienot
undercommoncontrolinNovember2020,asdetailedinNote(VI)1.
(2)Provisionsforgoodwillimpairments
| Investee | 1/1/2020 | Increase | Decrease | Effectofchangesinforeignexchange | 31/12/2020 |
| ShantouPort | - | 552,317,736.65 | - | - | 552,317,736.65 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
22.Goodwill-continued
(3)Informationofassetsgrouporportfolioofassetsgrouptowhichthegoodwillbelongs
TheGrouptakestheabilitytoindependentlygeneratecashinflows,managethewayofproductionandoperationactivities(mainlybygeographicareas)andunifieddecisionontheuseanddisposaloftheassetsasthecriteriatodetermineassetsgrouporportfolioofassetsgroup,andperformsimpairmenttestofgoodwillfortheassetsgrouporportfolioofassetsgroupasdetermined.Asat31December2020,theassetsgrouporportfolioofassetsgroupdeterminedbytheGroupinclude:TCP;MegaShekouContainerTerminalsLimited,includingShekouContainerTerminalsLtd.,ShenzhenLianyunjieContainerTerminalsCo.,Ltd.,AnxunjieContainerTerminals(Shenzhen)Co.,Ltd.;CMPort;ShantouPort;Zhanjiangport;ShenzhenMawanProject,includingShenzhenMawanPortWaterwayCo.,Ltd.,ShenzhenMagangGodown&WharfCo.,Ltd.(hereinafterreferredtoas"MagangGodown&Wharf");NingboDaxie.
(4)Impairmenttestofgoodwillandkeyparameters
Whentestingthegoodwillforimpairment,theGroupcomparesthecarryingamountofrelatedassetsgroupandportfolioofassetsgroup(includinggoodwill)withtherecoverableamount.Iftherecoverableamountislessthanthecarryingamount,thedifferenceisincludedinprofitorlossfortheperiod.TheGroupdeterminestherecoverableamountoftheassetsgroupandportfolioofassetsgroupthatgenerategoodwillatfairvaluelesscostofdisposaloratpresentvalueofexpectedfuturecashflows.Thefairvalueisdeterminedusingmarketapproach.Thepresentvalueofcashflowsisestimatedbasedontheforecastofcashflowsfor5yearsto28yearsdetailedforecastperiodandsubsequentforecastperiod.Theestimatedfuturecashflowsforthedetailedforecastperiodarebasedonthebusinessplanestablishedbythemanagement;theexpectedfuturecashflowsforthesubsequentforecastperiodaredeterminedinconjunctionwiththelevelofthefinalyearofthedetailedforecastperiod,combinedwiththeGroup'sbusinessplans,industrytrendsandinflationrates.Thegrowthrateadoptedwillnotexceedthelong-termaveragegrowthrateofthecountrywheretheassetsgroupandportfolioofassetsgrouparelocated.ThekeyassumptionsusedbytheGroupinestimatingthepresentvalueoffuturecashflowsincludegrowthrateanddiscountrateetc.Thepre-taxdiscountrateandthegrowthrateforsubsequentforecastedperiodadoptedin2020arearound11.19%-16.78%and
2.7%-3.0%respectively.TheparametersofkeyassumptionsdeterminedbytheGroup'smanagementareinlinewiththeGroup'shistoricalexperienceorexternalsourceofinformation.
(5)EffectofimpairmenttestofgoodwillDuringtheyear,theGroupassessedtherecoverableamountoftheassetgrouporsetofassetgroupswhichincludingthegoodwillanddeterminedthatthegoodwillofShantouPortwasimpairedbyanamountofRMB552,317,736.65.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
23.Long-termprepaidexpenses
| Item | 1/1/2020 | Effectofchangesinthescopeofconsolidation | Increasefortheyear | Amortizationintheyear | Otherchanges | 31/12/2020 |
| Tongguchannelwideningproject(Note1) | 525,516,089.84 | - | - | 23,656,287.85 | -10,012,815.00 | 491,846,986.99 |
| RelocationprojectofNanhaiRescueBureau | 39,049,767.97 | - | 1,780,994.09 | 1,061,913.76 | - | 39,768,848.30 |
| Expendituresfortheimprovementofleasedfixedassets | 17,778,884.18 | - | 1,255,355.00 | 1,555,016.15 | - | 17,479,223.03 |
| Westpublicchannelwideningproject,Westportarea(Note2) | 80,470,088.60 | - | 161,697,157.65 | 2,965,546.15 | 10,012,815.00 | 249,214,515.10 |
| Others | 49,096,181.08 | 9,924,686.56 | 34,146,022.07 | 16,243,578.85 | -390,411.60 | 76,532,899.26 |
| Total | 711,911,011.67 | 9,924,686.56 | 198,879,528.81 | 45,482,342.76 | -390,411.60 | 874,842,472.68 |
Note1:ThisrepresenttheGroup'sactualexpensesontheShenzhenWesternPortAreaTongguChannel210-270
MetersWideningProject.AccordingtorelevantresolutionsofShenzhenMunicipalGovernment,theexpensesincurredforthe210-240Mwideningprojectarebornbytheenterpriseandgovernmenton60%to40%principle,andtheexpensesincurredforthe240-270Mwideningprojectarebornbytheenterpriseandgovernmenton50%to50%principle.TheCompany'ssubsidiaryhasincludedtheexpensesondeepeningthechannelintheitemof"long-termprepaidexpenses",andamortizedsuchexpensesovertheexpectedusefullivesoftwowideningprojectsof35and40yearsusingstraight-linemethodsincethecompletionofeachprojectin2008and2019,respectively.Note2:ThisrepresenttheGroup'sactualexpensesontheShenzhenWesternPortAreaPublicChannelWidening
Project,ofwhichthewideningof240-270metersinthefirstsectionwascompletedon1June2019andthewideningof240-270metersinthesecondandthirdsectionswascompletedon5November2020.AccordingtorelevantresolutionsofShenzhenMunicipalGovernment,theexpensesincurredfortheprojectarebornbytheenterpriseandgovernmenton50%to50%principle.TheCompany'ssubsidiaryhasincludedtheexpensesondeepeningthechannelintheitemof"long-termprepaidexpenses",andamortizedsuchexpensesovertheexpectedusefullifeof40yearsusingstraight-linemethodsincethecompletionofeachsectionofthechannelwideningproject.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
24.Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetswithoutoffsetting
| Item | Closingbalance | Openingbalance | ||
| Deductibletemporarydifferences | Deferredtaxassets | Deductibletemporarydifferences | Deferredtaxassets | |
| Unrealizedprofit | 782,637,004.71 | 190,978,844.60 | 805,528,482.59 | 196,545,362.77 |
| Depreciationoffixedassets | 121,474,197.24 | 30,363,658.82 | 108,244,052.41 | 27,227,981.18 |
| Deductiblelosses | 375,133,696.59 | 121,834,055.80 | 79,034,267.56 | 19,758,566.89 |
| Provisionforcreditloss | 43,779,732.38 | 11,029,547.41 | 71,636,378.50 | 17,881,386.96 |
| Provisions | 83,415,919.34 | 22,408,962.33 | 60,976,862.88 | 16,601,394.38 |
| Deferredincome | 40,760,480.40 | 9,289,713.04 | 40,272,757.15 | 9,737,699.40 |
| Amortizationofcomputersoftware | 11,007,022.11 | 2,751,755.53 | 13,630,227.66 | 3,407,556.91 |
| Organizationcosts | 8,436,714.76 | 2,109,178.68 | 10,905,997.08 | 2,726,499.27 |
| Provisionforimpairmentlossesofassets | 884,061.15 | 221,015.29 | 1,918,890.31 | 479,722.58 |
| Others | 121,790,935.17 | 29,744,326.80 | 29,120,031.36 | 6,069,331.93 |
| Total | 1,589,319,763.85 | 420,731,058.30 | 1,221,267,947.50 | 300,435,502.27 |
(2)Deferredtaxliabilitieswithoutoffsetting
| Item | Closingbalance | Openingbalance | ||
| Taxabletemporarydifferences | Deferredtaxliabilities | Taxabletemporarydifferences | Deferredtaxliabilities | |
| Withholdingdividendincometax | 28,188,540,389.01 | 1,925,457,143.90 | 24,219,415,080.67 | 1,735,339,232.65 |
| Fairvalueadjustmentofassetsacquiredbybusinesscombination | 8,566,522,113.13 | 1,925,197,755.69 | 7,989,044,772.81 | 1,812,240,254.17 |
| Changesinfairvalueofothernon-currentfinancialassets | 1,625,996,080.95 | 225,877,441.96 | 1,434,338,833.65 | 186,123,245.82 |
| Depreciationoffixedassets | 826,231,081.71 | 217,461,491.73 | 731,584,120.16 | 166,830,773.03 |
| Changesinfairvalueofinvestmentsinotherequityinstruments | 140,581,630.00 | 35,145,407.50 | 140,659,435.00 | 35,164,858.75 |
| Others | 87,206,887.29 | 18,413,901.95 | 110,838,382.96 | 26,054,384.75 |
| Total | 39,435,078,182.09 | 4,347,553,142.73 | 34,625,880,625.25 | 3,961,752,749.17 |
(3)Deferredtaxassetsorliabilitiesthatarepresentedatthenetamountafteroffsetting
| Item | Offsetamountofdeferredtaxassetsandliabilitiesattheendoftheyear | Balanceofdeferredtaxassetsorliabilitiesafteroffsettingattheendofthisyear | Offsetamountofdeferredtaxassetsandliabilitiesattheendoflastyear | Balanceofdeferredtaxassetsorliabilitiesafteroffsettingattheendoflastyear |
| Deferredtaxassets | - | 420,731,058.30 | - | 300,435,502.27 |
| Deferredtaxliabilities | - | 4,347,553,142.73 | - | 3,961,752,749.17 |
(4)Detailsofunrecognizeddeferredtaxassets
| Item | Closingbalance | Openingbalance |
| Deductibletemporarydifferences | 428,572,235.55 | 503,037,805.60 |
| Deductiblelosses | 2,512,461,574.84 | 2,289,500,649.57 |
| Total | 2,941,033,810.39 | 2,792,538,455.17 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
24.Deferredtaxassetsanddeferredtaxliabilities-continued
(4)Detailsofunrecognizeddeferredtaxassets-continuedTheGrouprecognizesdeferredincometaxassetstotheextentoffuturetaxableincomethatislikelytobeobtainedtooffsetthedeductibletemporarydifferencesanddeductiblelosses.Fortheexcessofdeductibletemporarydifferencesanddeductiblelossesoverfuturetaxableincome,nodeferredtaxassetsisrecognized.
(5)Deductiblelossesforunrecognizeddeferredtaxassetswillbeexpiredinthefollowingyears:
| Year | Closingbalance | Openingbalance |
| 2020 | - | 182,809,604.33 |
| 2021 | 244,394,853.17 | 244,394,853.17 |
| 2022 | 628,805,890.89 | 615,440,669.35 |
| 2023 | 793,817,471.45 | 745,889,729.49 |
| 2024 | 507,534,486.68 | 500,926,253.51 |
| 2025 | 337,871,725.27 | - |
| Noexpirationdate | 37,147.38 | 39,539.72 |
| Total | 2,512,461,574.84 | 2,289,500,649.57 |
25.Othernon-currentassets
| Item | Closingbalance | Openingbalance |
| DachanwanportareaPhaseIIlandreplacementpayment(Note1) | 916,884,222.49 | 916,884,222.49 |
| Advancesforthechannelproject(Note2) | 940,472,488.75 | 896,848,920.76 |
| Prepaymentsforlanduserights | 132,334,704.86 | 132,334,704.86 |
| Prepaymentsforfixedassets | 32,623,333.85 | 90,186,071.12 |
| Prepaymentsforterminalfranchise | 31,113,113.10 | 30,356,842.78 |
| Others | 85,040,820.59 | 16,354,705.03 |
| Total | 2,138,468,683.64 | 2,082,965,467.04 |
Note1:ItisthelandslocatedinShenzhenQianhaiwanLogisticsParkwhichhasbeenreturnedtogovernmentin
2019bytheCompany’ssubsidiariesAntongjieTerminalServices(Shenzhen)Co.,Ltd.(“ATJ”)andAnsujieTerminalServices(Shenzhen)Co.,Ltd.(“ASJ”).QianhaiAdministrationreplaces55%landandcorrespondingshoreline(withalandareaofapproximately531,300squaremeters)includedinthetotalareasofT102-0166andT102-0167heldbyATJandASJtoDachanwanPortAreaPhaseII.Asat31December2020,thechangeoflanduserightsofDachanwanPortAreaPhaseIIhasnotbeencompleted.Note2:ThisrepresentthattheCompany'ssubsidiaryZhanjiangPort,uponitsreorganizationintoajointstock
companyin2007,signedtheChannelArrangementAgreementwithState-ownedAssetsSupervisionandAdministrationCommissionofZhanjiang("ZhanjiangSASAC")andChinaMerchantsInternationalTerminal(Zhanjiang)Co.,Ltd.Accordingtotheagreement,thechannelbelongstoZhanjiangSASAC,thereforetheGroupincludedtheadvancesofchannelprojectthatshouldberepaidbyZhanjiangSASACinothernon-currentassets.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
26.Short-termborrowings
(1)Classificationofshort-termborrowings
| Item | Closingbalance | Openingbalance |
| Creditloan | 8,976,788,882.26 | 9,439,099,793.47 |
| Guaranteedloan(Note1) | 1,506,986,666.67 | - |
| Total | 10,483,775,548.93 | 9,439,099,793.47 |
Note1:TheCompanyprovidedguaranteefortheloan.
(2)At31December2020,theGrouphasnoshort-termborrowingsthatwereoverdue.
27.Notespayable
| Category | Closingbalance | Openingbalance |
| Bankacceptance | 1,600,100.00 | 2,529,389.61 |
| Commercialacceptance | 5,481,672.32 | 73,926,559.40 |
| Total | 7,081,772.32 | 76,455,949.01 |
28.Accountspayable
(1)Detailsofaccountspayableareasfollows:
| Item | Closingbalance | Openingbalance |
| Servicefee | 146,212,519.71 | 133,134,547.67 |
| Constructionfee | 114,557,864.74 | 173,811,112.97 |
| Materialpurchase | 144,277,086.08 | 146,969,853.48 |
| Rentalfee | 7,494,989.48 | 13,897,329.66 |
| Equipmentpayments | 16,905,379.88 | 15,947,499.80 |
| Others | 169,664,189.09 | 107,352,122.81 |
| Total | 599,112,028.98 | 591,112,466.39 |
(2)Significantaccountspayableagedmorethanoneyear
| Name | Carryingamountattheendoftheyear | Reasonforoutstandingorcarry-forward |
| ShenzhenLandandResourcesBureau | 21,642,795.50 | Thegovernmentplanningprojecthasnotbeencompleted,andtheownershipcertificateisnothandled |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
29.Receiptsinadvance
(1)Summaryofreceiptsinadvance
| Item | Closingbalance | Openingbalance |
| Equitytransferfeereceivedinadvance | 20,492,849.00 | - |
| Managementfeereceivedinadvance | 10,350,161.96 | - |
| Shiptransferfeereceivedinadvance | 3,450,560.00 | - |
| Rentalfeereceivedinadvance | 2,715,835.65 | 13,409,679.80 |
| Servicefeereceivedinadvance | - | 10,500,836.06 |
| Others | 2,500,721.29 | 4,916,171.51 |
| Total | 39,510,127.90 | 28,826,687.37 |
(2)Thereisnosignificantreceiptsinadvanceagedmorethanoneyearattheendoftheyear
30.Contractliabilities
(1)Summaryofcontractliabilities
| Item | Closingbalance | Openingbalance |
| Portchargesreceivedinadvance | 78,789,466.29 | 63,954,147.44 |
| Warehousingfeereceivedinadvance | 18,460,680.90 | - |
| Servicefeereceivedinadvance | 48,813,245.81 | 17,396,130.82 |
| Others | 1,981,148.70 | 4,480,724.26 |
| Total | 148,044,541.70 | 85,831,002.52 |
(2)Therewasnosignificantchangeinthebookvalueofcontractliabilitiesduringtheyear.
(3)Thereisnosignificantcontractliabilitiesagedmorethanoneyearattheendoftheyear.
(4)Qualitativeandquantitativeanalysisofcontractliabilities
ThecontractliabilitymainlyrepresentstheamountreceivedbytheGrouptoprovideportservicestocustomers.Thepaymentiscollectedaccordingtothecontractualpaymenttime.TheGrouprecognizescontractrevenuebasedontheprogressofthecontract.ThecontractliabilitieswillberecognizedasincomeaftertheGroupfulfillsitsperformanceobligations.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
30.Contractliabilities-continued
(5)Revenuerecognizedintheyearandincludedinthecarryingamountof
contractliabilitiesatthebeginningoftheyear
AnamountofRMB70,660,631.25includedinthebookvalueofcontractliabilitiesatthebeginningof2020hasbeenrecognizedasrevenueinthecurrentyear,includingcontractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromthecontractofreceiptofservicefeeinadvanceamountingtoRMB5,296,400.84,contractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromthecontractofreceiptofportchargesinadvanceamountingtoRMB61,515,581.17,andcontractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromothercontractsamountingtoRMB3,848,649.24.
31.Employeebenefitspayable
(1)Employeebenefitspayable
| Item | 1/1/2020 | Effectofchangesinthescopeofconsolidation | Increaseinthecurrentyear | Decreaseinthecurrentyear | 31/12/2020 |
| 1.Short-termbenefits | 630,356,614.44 | 42,603,096.98 | 2,683,167,538.71 | 2,649,640,006.43 | 706,487,243.70 |
| 2.Post-employmentbenefits-definedcontributionplan | 5,015,323.78 | 1,908,108.13 | 165,280,891.31 | 165,986,638.38 | 6,217,684.84 |
| 3.Terminationbenefits | - | - | 24,658,398.01 | 24,658,398.01 | - |
| 4.Otherbenefitsduewithinayear | - | - | 4,387,916.25 | 4,387,916.25 | - |
| 5.Others | -653,153.58 | -3,982.30 | 4,751,405.94 | 4,713,576.45 | -619,306.39 |
| Total | 634,718,784.64 | 44,507,222.81 | 2,882,246,150.22 | 2,849,386,535.52 | 712,085,622.15 |
(2)Short-termbenefits
| Item | 1/1/2020 | Effectofchangesinthescopeofconsolidation | Increaseinthecurrentyear | Decreaseinthecurrentyear | 31/12/2020 |
| I.Wagesandsalaries,bonuses,allowancesandsubsidies | 604,864,369.83 | 39,288,352.03 | 2,221,370,860.93 | 2,191,143,734.26 | 674,379,848.53 |
| II.Staffwelfare | - | - | 126,699,782.20 | 126,699,782.20 | - |
| III.Socialinsurancecharges | 9,636,773.03 | 2,788,350.45 | 129,801,742.05 | 126,132,738.79 | 16,094,126.74 |
| Including:Medicalinsurance | 8,317,044.95 | 2,750,575.62 | 105,632,132.49 | 101,834,602.65 | 14,865,150.41 |
| Workinjuryinsurance | - | 6,287.60 | 9,007,542.06 | 9,007,571.52 | 6,258.14 |
| Maternityinsurance | - | 31,487.23 | 6,094,575.77 | 6,095,261.41 | 30,801.59 |
| Others | 1,319,728.08 | - | 9,067,491.73 | 9,195,303.21 | 1,191,916.60 |
| IV.Housingfunds | - | -454,068.00 | 156,097,308.32 | 156,133,562.21 | -490,321.89 |
| V.Laborunionandemployeeeducationfunds | 15,855,471.56 | 980,462.50 | 40,068,412.17 | 40,400,755.91 | 16,503,590.32 |
| VI.Othershort-termbenefits | 0.02 | - | 9,129,433.04 | 9,129,433.06 | - |
| Total | 630,356,614.44 | 42,603,096.98 | 2,683,167,538.71 | 2,649,640,006.43 | 706,487,243.70 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
31.Employeebenefitspayable-continued
(3)Definedcontributionplan-continued
| Item | 1/1/2020 | Effectofchangesinthescopeofconsolidation | Increaseinthecurrentyear | Decreaseinthecurrentyear | 31/12/2020 |
| I.Basicpension | 4,900,268.87 | 1,912,600.29 | 82,978,065.44 | 83,677,975.96 | 6,112,958.64 |
| II.Unemploymentinsurance | 0.01 | 64,354.90 | 1,260,949.37 | 1,261,276.04 | 64,028.24 |
| III.Enterpriseannuity | 115,054.90 | -68,847.06 | 81,041,876.50 | 81,047,386.38 | 40,697.96 |
| Total | 5,015,323.78 | 1,908,108.13 | 165,280,891.31 | 165,986,638.38 | 6,217,684.84 |
TheCompanyanditssubsidiariesparticipatesinthesocialsecuritycontributionsandtheunemploymentinsuranceplanestablishedbygovernmentinstitutionsasrequired.Accordingtosuchplans,theGroupcontributesinproportiontothelocalgovernment.Exceptfortheabove-mentioneddepositfees,theGrouphavenooutstandingcontributionstobepaidtothesocialsecuritycontributionsandtheunemploymentinsuranceplan.Thecorrespondingexpensesareincludedinthecurrentprofitandlossorthecostofrelatedassetswhenincurred.
32.Taxespayable
| Item | Closingbalance | Openingbalance |
| Enterpriseincometax | 2,319,560,340.66 | 1,843,381,355.01 |
| VAT | 12,385,746.69 | 11,377,223.08 |
| Othertaxes | 36,716,469.02 | 43,317,764.65 |
| Total | 2,368,662,556.37 | 1,898,076,342.74 |
33.Otherpayables
(1)Summaryofotherpayables
| Item | Closingbalance | Openingbalance |
| Interestpayable | - | - |
| Dividendspayable | 54,255,854.79 | 150,286,550.81 |
| Otherpayables | 2,402,445,042.81 | 2,073,468,127.15 |
| Total | 2,456,700,897.60 | 2,223,754,677.96 |
(2)Dividendspayable
| Item | Closingbalance | Openingbalance |
| Ordinarysharedividends | 54,255,854.79 | 150,286,550.81 |
| Including:SriLankaPortsAuthority | 34,255,854.79 | 31,392,997.47 |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd. | 20,000,000.00 | - |
| YihaiKerryGoldenArowanaCereals,OilsandFoodstuffsCo.,Ltd. | - | 37,402,426.09 |
| SoiferParticipa??esSocietáriasS.A. | - | 14,141,088.03 |
| PattacEmpreendimentoseParticipa??esS.A. | - | 4,597,020.40 |
| TucParticipacoesPortuariasS.A. | - | 4,597,018.82 |
| ModernTerminalsLimited | - | 58,156,000.00 |
Asat31December2020,theGrouphasnodividendpayablewithagingoveroneyear.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
33.Otherpayables-continued
(3)Otherpayables(a)Disclosureofotherpayablesbynature
| Item | Closingbalance | Openingbalance |
| Amountpayableforconstructionandqualitywarranty | 1,044,197,364.04 | 1,053,340,753.66 |
| Deposits | 359,957,933.44 | 162,460,889.01 |
| Customerdiscount | 119,368,121.44 | 117,736,418.62 |
| Prepaidexpenses | 229,817,005.45 | 110,741,377.48 |
| Portconstructionandsecurityfee | 55,085,280.96 | 58,732,330.62 |
| Balanceoflanduserightstransfer | 11,295,700.00 | 14,538,738.00 |
| Others | 582,723,637.48 | 555,917,619.76 |
| Total | 2,402,445,042.81 | 2,073,468,127.15 |
(b)Significantotherpayableswithagingover1year
| Companyname | Closingbalance | Reasonforoutstandingorcarry-forward |
| TransportCommissionofShenzhenMunicipality | 60,152,353.49 | Tobepaiduponconfirmationbybothparties |
| ChinaFirstMetallurgicalGroupCo.,Ltd. | 47,280,549.63 | Thecontractedsettlementconditionhasnotbeenreached |
| WuxiHuadongHeavyMachineryCo.,Ltd. | 44,295,045.47 | Tobepaiduponconfirmationbybothparties |
| ShanghaiZhenhuaHeavyIndustriesCo.,Ltd. | 35,382,190.55 | Tobepaiduponconfirmationbybothparties |
| CCCCFourthHarborEngineeringCo.,Ltd. | 34,845,078.73 | Thecontractedsettlementconditionhasnotbeenreached |
| ShantouTransportationBureau | 31,358,355.47 | Tobepaiduponconfirmationbybothparties |
| CCCC-FHDIEngineeringCo.,Ltd. | 21,878,790.74 | Thecontractedsettlementconditionhasnotbeenreached |
| QingdaoMaritimeBureau | 20,713,982.12 | Tobepaiduponconfirmationbybothparties |
| ZhanjiangTransportationBureau | 17,524,972.24 | Tobepaiduponconfirmationbybothparties |
| SuhuaConstructionGroupCo.,Ltd. | 14,483,683.52 | Thecontractedsettlementconditionhasnotbeenreached |
| ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd. | 14,305,122.78 | Qualitywarranty,thecontractedsettlementconditionhasnotbeenreached |
| CCCCThirdHarborEngineeringCo.,Ltd. | 12,663,285.33 | Thecontractedsettlementconditionhasnotbeenreached |
| ShenzhenMunicipalSpecialFundforDevelopmentofBulkCement | 12,238,226.14 | Tobepaiduponconfirmationbybothparties |
| ShantouFinanceBureau | 10,000,000.00 | Tobepaiduponconfirmationbybothparties |
| JiangmenSouthernTransportMachineryEngineeringCo.,Ltd. | 7,890,163.70 | Thecontractedsettlementconditionhasnotbeenreached |
| HarmanTechnology(Shenzhen)Co.,Ltd. | 5,917,392.48 | Thecontractedsettlementconditionhasnotbeenreached |
| Total | 390,929,192.39 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
34.Non-currentliabilitiesduewithinoneyear
| Item | Closingbalance | Openingbalance |
| Long-termloansduewithinoneyear | 2,074,906,728.26 | 2,954,701,198.90 |
| Including:Creditloan | 749,046,479.86 | 1,294,054,756.85 |
| Guaranteedloan | 739,805,701.02 | 1,119,153,332.94 |
| Mortgageloan | 586,054,547.38 | 541,493,109.11 |
| Bondspayableduewithinoneyear | 1,042,773,072.37 | 1,889,505,167.46 |
| Long-termpayableduewithinoneyear | 3,562,994.44 | 61,107,722.82 |
| Long-termemployeebenefitspayableduewithinoneyear | 36,811,951.00 | 31,950,000.00 |
| Leaseliabilitiesduewithinoneyear | 322,827,694.67 | 341,240,327.95 |
| Othernon-currentliabilitiesduewithinoneyear | 83,582,696.63 | 825,835,439.66 |
| Total | 3,564,465,137.37 | 6,104,339,856.79 |
35.Othercurrentliabilities
| Item | Closingbalance | Openingbalance |
| Short-termbondspayable | 2,215,478,001.40 | 712,345,315.07 |
| Accruedprofessionalagencyfee | 138,158,158.51 | 143,346,356.53 |
| Others | 30,032,826.03 | 30,264,910.03 |
| Total | 2,383,668,985.94 | 885,956,581.63 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
35.Othercurrentliabilities-continuedChangesofshort-termbondspayable:
| Nameofbond | Facevalue | Dateofissue | Termofthebond | Amountofissue | 1/1/2020 | Amountissuedinthecurrentyear | Interestaccruedbasedonparvalue | Amortizationofpremiumsordiscounts | Repaymentinthecurrentyear | 31/12/2020 |
| 1.50%RMB1.3billionSuper&Short-termCommercialPaper | 1,300,000,000.00 | 29/4/2020 | 180days | 1,300,000,000.00 | - | 1,300,000,000.00 | 9,616,438.36 | - | 1,309,616,438.36 | - |
| 1.99%RMB1billionSuper&Short-termCommercialPaper | 1,000,000,000.00 | 5/6/2020 | 270days | 1,000,000,000.00 | - | 1,000,000,000.00 | 11,418,032.80 | - | - | 1,011,418,032.80 |
| 2.50%RMB700millionSuper&Short-termCommercialPaper | 700,000,000.00 | 26/2/2020 | 266days | 700,000,000.00 | - | 700,000,000.00 | 12,718,579.23 | - | 712,718,579.23 | - |
| 3.08%RMB700millionSuper&Short-termCommercialPaper | 700,000,000.00 | 4/6/2019 | 270days | 700,000,000.00 | 712,345,315.07 | - | 3,559,602.96 | - | 715,904,918.03 | - |
| 2.50%RMB1.2billionSuper&Short-termCommercialPaper | 1,200,000,000.00 | 13/11/2020 | 180days | 1,200,000,000.00 | - | 1,200,000,000.00 | 4,059,968.60 | - | - | 1,204,059,968.60 |
| Total | 4,900,000,000.00 | 4,900,000,000.00 | 712,345,315.07 | 4,200,000,000.00 | 41,372,621.95 | - | 2,738,239,935.62 | 2,215,478,001.40 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
36.Long-termborrowings
(1)Classificationoflong-termborrowings
| Item | Closingbalance | Openingbalance |
| Creditborrowings | 5,258,127,800.86 | 3,368,772,302.71 |
| Guaranteedborrowings(Note1) | 1,629,960,889.64 | 2,857,916,427.60 |
| Mortgageborrowings(Note2) | 2,593,140,731.56 | 3,041,748,008.91 |
| Total | 9,481,229,422.06 | 9,268,436,739.22 |
| Less:Long-termborrowingsduewithinoneyear | 2,074,906,728.26 | 2,954,701,198.89 |
| Including:Creditborrowings | 749,046,479.86 | 1,294,054,756.85 |
| Guaranteedborrowings | 739,805,701.02 | 1,119,153,332.93 |
| Mortgageborrowings | 586,054,547.38 | 541,493,109.11 |
| Long-termborrowingsdueafteroneyear | 7,406,322,693.80 | 6,313,735,540.33 |
Duringtheyear,theannualinterestrateoftheborrowingrangesfrom1.20%to5.78%.Note1:TheloanwasguaranteedbyShenzhenMagangGodown&WharfCo.,Ltd.,ChinaMerchantsPortService
(Shenzhen)Co.,Ltd,andCMPort.Note2:Asat31December2020,theGroupobtainedthelong-termloanofRMB2,593,140,731.56(31December
2019:RMB3,041,748,008.91)withitsentireequityinColomboInternationalContainerTerminals
Limited(hereinafterreferredtoas"CICT"),andtheentireequityinThesarMaritimeLimited,(hereinafter
referredtoas"TML"),andthelanduserights,fixedassetsandconstructioninprogressheldby
GuangdongYidePortCo.,Ltd.(hereinafterreferredtoas"YidePort"),thelanduserightsofShenzhen
HaixingHarborDevelopmentCo.,Ltd.(hereinafterreferredtoas"ShenzhenHaixing"),aswellasthe
seaareauserightsofDongguanChiwanPortServiceCo.,Ltd.(hereinafterreferredtoas"ChiwanPort"),
mortgagedascollaterals.Detailsofmortgageborrowingsareasfollows:
| Companyname | Closingbalance | Openingbalance | Collateral |
| ChinaDevelopmentBankCorporation | 1,027,981,472.96 | 1,358,129,654.07 | TheGroup'sentireequityinColomboInternationalContainerTerminalsLimited |
| InternationalFinanceCorporation | 364,480,624.59 | 449,103,214.20 | TheGroup'sentireequityinThesarMaritimeLimited |
| AfricanDevelopmentBank | 167,372,490.13 | 206,294,203.06 | |
| NederlandseFinancierings-MaatschappijvoorOntwikkelingslandenN.V. | 137,905,387.30 | 169,887,745.22 | |
| TheOpecFundForInternationalDevelopment | 118,146,703.89 | 145,656,886.91 | |
| SocietedePromotionetdeParticipationpourlaCooperationEconomiqueS.A. | 118,218,277.06 | 145,613,216.49 | |
| DeutscheInvestitions-undEntwicklungsgesellschaftMBH | 98,452,963.64 | 121,392,394.29 | |
| BankofChinaQianhaiShekouBranch | 241,370,822.05 | 241,388,867.03 | LanduserightsofShenzhenHaixingHarborDevelopmentCo.,Ltd(seenote(V)63) |
| ChinaConstructionBankShundeBranch | 210,178,757.55 | 184,264,872.07 | Landuserights,fixedassetsandconstructioninprogressofYidePort(seenote(V)63) |
| ChinaMerchantsBankDongguanBranch | 109,033,232.39 | 20,016,955.57 | SeaareauserightsofDongguanChiwanWarfCo.,Ltd.(seenote(V)63) |
| Total | 2,593,140,731.56 | 3,041,748,008.91 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
37.Bondspayable
(1)Bondspayable
| Item | Closingbalance | Openingbalance |
| 4.375%,USD900millioncorporatebond | 5,948,107,858.02 | 6,349,018,876.27 |
| 5.000%,USD600millioncorporatebond | 3,950,488,734.13 | 4,218,874,981.43 |
| 4.750%,USD500millioncorporatebond | 3,314,305,348.22 | 3,541,255,065.51 |
| 5.000%,USD500millioncorporatebond | 3,280,606,167.04 | 3,500,281,169.59 |
| 4.890%RMB2.5billioncorporatebond | 2,585,407,534.25 | 2,585,072,602.74 |
| 3.360%RMB2billioncorporatebond | 2,033,040,000.00 | - |
| IPCA+7.8164%BRL428millioncorporatebond | 620,162,618.74 | 810,150,534.24 |
| 4.980%RMB400millioncorporatebond | 401,200,657.53 | 401,200,657.53 |
| 3.500%USD200millioncorporatebond | - | 1,414,333,247.34 |
| Total | 22,133,318,917.93 | 22,820,187,134.65 |
| Less:Bondspayableduewithinoneyear | 1,042,773,072.37 | 1,889,505,167.46 |
| Bondspayabledueafteroneyear | 21,090,545,845.56 | 20,930,681,967.19 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
37.Bondspayable-continued
(2)Changesofbondspayable
| Nameofbonds | Facevalue | Dateofissue | Termofthebond | Amountofissue | 1/1/2020 | Amountissuedinthecurrentyear | Interestaccruedbasedonparvalue | Amortizationofpremiumsordiscounts | Repaymentinthecurrentyear | Effectofchangesinforeignexchange | 31/12/2020 |
| 4.375%,USD900millioncorporatebond | USD900,000,000.00 | 2018-8-6 | 5years | USD900,000,000.00 | 6,349,018,876.27 | - | 271,646,628.75 | 10,416,483.30 | 271,646,628.75 | -411,327,501.55 | 5,948,107,858.02 |
| 5.000%,USD600millioncorporatebond | USD600,000,000.00 | 2018-8-6 | 10years | USD600,000,000.00 | 4,218,874,981.43 | - | 206,968,860.00 | 4,815,463.94 | 206,968,860.00 | -273,201,711.24 | 3,950,488,734.13 |
| 4.750%,USD500millioncorporatebond | USD500,000,000.00 | 2015-8-3 | 10years | USD500,000,000.00 | 3,541,255,065.51 | - | 163,850,347.57 | 2,259,134.10 | 163,850,347.50 | -229,208,851.46 | 3,314,305,348.22 |
| 5.000%,USD500millioncorporatebond | USD500,000,000.00 | 2012-5-4 | 10years | USD500,000,000.00 | 3,500,281,169.59 | - | 172,474,050.00 | 6,760,030.70 | 172,474,050.00 | -226,435,033.25 | 3,280,606,167.04 |
| 4.890%RMB2.5billioncorporatebond | RMB2,500,000,000.00 | 2017-4-21 | 5years | RMB2,500,000,000.00 | 2,585,072,602.74 | - | 122,584,931.51 | - | 122,250,000.00 | - | 2,585,407,534.25 |
| 3.360%RMB2billioncorporatebond | RMB2,000,000,000.00 | 2020-7-8 | 3years | RMB2,000,000,000.00 | - | 2,000,000,000.00 | 33,040,000.00 | - | - | - | 2,033,040,000.00 |
| IPCA+7.8164%BRL428millioncorporatebond | BRL428,047,000.00 | 2016-11-7 | 5years/6years | BRL428,047,000.00 | 810,150,534.24 | - | 88,607,823.56 | 9,446,052.30 | 56,605,942.56 | -231,435,848.80 | 620,162,618.74 |
| 4.980%RMB400millioncorporatebond | RMB400,000,000.00 | 2018-12-10 | 3years | RMB400,000,000.00 | 401,200,657.53 | - | 19,920,000.00 | - | 19,920,000.00 | - | 401,200,657.53 |
| 3.500%USD200millioncorporatebond | USD200,000,000.00 | 2015-8-3 | 5years | USD200,000,000.00 | 1,414,333,247.34 | - | 28,573,196.35 | 1,230,286.37 | 1,428,085,134.00 | -16,051,596.06 | - |
| Total | 22,820,187,134.65 | 2,000,000,000.00 | 1,107,665,837.74 | 34,927,450.71 | 2,441,800,962.81 | -1,387,660,542.36 | 22,133,318,917.93 | ||||
| Less:Bondspayableduewithinoneyear | 1,889,505,167.46 | 1,042,773,072.37 | |||||||||
| Bondspayabledueafteroneyear | 20,930,681,967.19 | 21,090,545,845.56 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
38.Leaseliabilities
| Category | Closingbalance | Openingbalance |
| Leasepayment | 2,452,042,889.87 | 2,934,104,267.67 |
| Unrecognizedfinancingcost | -801,791,447.15 | -945,733,971.11 |
| Total | 1,650,251,442.72 | 1,988,370,296.56 |
| Less:Leaseliabilitiesduewithinoneyear | 322,827,694.67 | 341,240,327.95 |
| Leaseliabilitiesdueafteroneyear | 1,327,423,748.05 | 1,647,129,968.61 |
39.Long-termpayables
(1)Summaryoflong-termpayables
| Item | Closingbalance | Openingbalance |
| Long-termpayables | 1,192,028,415.01 | 1,447,802,228.74 |
| Specialpayables | 39,996,153.12 | 548,550,497.29 |
| Total | 1,232,024,568.13 | 1,996,352,726.03 |
| Less:Long-termpayablesduewithinoneyear | 3,562,994.44 | 61,107,722.82 |
| Long-termpayablesdueafteroneyear | 1,228,461,573.69 | 1,935,245,003.21 |
(2)Long-termpayables
| Item | Closingbalance | Openingbalance |
| Terminalmanagementrights(Note1) | 749,658,074.16 | 881,239,309.85 |
| PayabletoMinorityshareholderofsubsidiary(Note2) | 437,238,325.33 | 407,092,971.69 |
| Borrowingsfromrelatedparties(Note3) | - | 150,000,000.00 |
| Others | 5,132,015.52 | 9,469,947.20 |
| Total | 1,192,028,415.01 | 1,447,802,228.74 |
| Less:Long-termpayablesduewithinoneyear | 3,562,994.44 | 61,107,722.82 |
| Long-termpayablesdueafteroneyear | 1,188,465,420.57 | 1,386,694,505.92 |
Note1:Asat12August2011,theGroupreacheda35-yearbuilding,operationandtransferagreementthroughthe
subsidiaryColomboInternationalContainerTerminalsLimitedandtheSriLankaPortAuthorityonthebuilding,operation,managementanddevelopmentoftheColomboPortSouthContainerTerminal(hereinafterreferredtoasfor"BOT").Theabove-mentionedterminaloperatingrightspurchaseamountisdeterminedbydiscountingtheamounttobepaidinthefutureusingtheprevailingmarketinterestrateaccordingtotheBOTagreement.Asat31December2020,theamountisRMB749,658,074.16.Note2:ItisanunsecuredloanfromminorityshareholderofThesarMaritimeLimited,asubsidiaryoftheCompany,
withanannualinterestrateof4.65%.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
39.Long-termpayables-continued
(2)Long-termpayables-continuedNote3:At9December2019,XiamenBayPortAffairs(hereinafterreferredtoas"ZCMG"),asubsidiaryofthe
Company,andChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.enteredintoa72-monthsale-and-leasebackagreementinrespectofthesale-and-leasebackassets,withaconsiderationofRMB150,000,000.00.ZCMGisthesellerandlesseeoftheleasedassets.AsChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.hasnocontrolovertheleasedassets,thetransferofassetsinthesale-and-leasebacktransactionisnotasaleandthecashreceiptsareaccountedforasfinancialliabilities,i.e.borrowingsfromrelatedparties.Accordingtotheagreement,theinterestratefortheborrowingsis4.75%andtheborrowingperiodis72months.ZCMGhaverepaidtheaforesaidborrowingsinJuly2020.
(3)Specialpayables
| Item | 1/1/2020 | Increaseinthecurrentyear | Effectofchangesinthescopeofconsolidation | Decreaseinthecurrentyear | 31/12/2020 | Reason |
| Refundsofportconstructionfee | 545,346,468.32 | - | - | 511,074,910.02 | 34,271,558.30 | Note1 |
| Employeehousingfund | 3,204,028.97 | 648,796.63 | - | - | 3,852,825.60 | Note2 |
| Innovationworkshopformodelworkers | - | 773,274.28 | 1,098,494.94 | - | 1,871,769.22 | |
| Total | 548,550,497.29 | 1,422,070.91 | 1,098,494.94 | 511,074,910.02 | 39,996,153.12 |
Note1:ThisrepresentstherefundoftheconstructionfeereceivedbytheGroupfromtheMinistryofTransport,
ShenzhenMunicipalTransportationBureau.Accordingtothe"PortConstructionFeeManagementMeasures"promulgatedbytheMinistryofFinance,thispaymentisdedicatedtotheconstructionofwatertransportinfrastructure.ThedecreaseintheyearismainlycausedbythetransferofportconstructionfeerefundfortheCompany'ssubsidiaryZhanjiangPort,amountingtoRMB510,107,118.35,tocapitalreserve.Note2:Thisrepresenttherepairingfundforpublicareasandpublicfacilitiesandequipmentestablishedafterthe
Group'ssellingthepublic-ownedhouseonthecollectivelyallocatedlandtoemployees.Thefundiscontributedbyalltheemployeeshavingownershipofthehouseaccordingtotherules,andisspeciallymanagedandusedforspecificpurpose.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
40.Long-termemployeebenefitspayable
(1)Long-termemployeebenefitspayable
| Item | Closingbalance | Openingbalance |
| Post-employmentbenefits-netliabilitiesofdefinedbenefitsplan | 429,830,989.42 | 454,383,940.25 |
| Terminationbenefits | 40,939,305.56 | 49,048,198.38 |
| Others(Note) | 73,756,355.48 | - |
| Total | 544,526,650.46 | 503,432,138.63 |
| Less:Long-termemployeebenefitspayableduewithinoneyear | 36,811,951.00 | 31,950,000.00 |
| Long-termemployeebenefitspayabledueafteroneyear | 507,714,699.46 | 471,482,138.63 |
Note:It'stheemployeesettingcostoftheCompany'ssubsidiaryShantouPortinconnectionwithlandacquisition
andreservation.
(2)Changesofdefinedbenefitsplan
Presentvalueofdefinedbenefitsplanobligation:
| Item | 2020 | 2019 |
| I.Openingbalance | 454,383,940.25 | 385,323,310.21 |
| II.Definedbenefitscostincludedinprofitorlossfortheperiod | 35,512,520.40 | 25,714,051.83 |
| 1.Currentservicecost | 19,803,282.73 | 10,244,780.50 |
| 2.Pastservicecost | - | -180,000.00 |
| 3.Interestadjustment | 15,709,237.67 | 15,649,271.33 |
| III.Definedbenefitscostincludedinothercomprehensiveincome | -35,245,220.38 | -1,513,131.31 |
| 1.Actuarialgains(losses) | -35,016,155.14 | -1,552,580.61 |
| 2.Effectofexchangeratechanges | -229,065.24 | 39,449.30 |
| IV.Otherchanges | -24,820,250.85 | 44,859,709.52 |
| 1.Benefitspaid | -24,820,250.85 | -31,910,290.48 |
| 2.Changesinthescopeofconsolidation | - | 76,770,000.00 |
| V.Closingbalance | 429,830,989.42 | 454,383,940.25 |
TheCompany'ssubsidiariesprovidetheregisteredretireesandin-servicestaffwithsupplementarypost-employmentbenefitplans.TheGrouphiredathird-partyactuarytoestimatethepresentvalueofitsabove-mentionedretirementbenefitplanobligationsinanactuarialmannerbasedontheexpectedcumulativewelfareunitmethod.TheGrouprecognizestheGroup'sliabilitiesbasedontheactuarialresults.Therelevantactuarialgainsorlossesareincludedinothercomprehensiveincomeandcannotbereclassifiedintoprofitorlossinthefuture.Pastservicecostsarerecognizedinprofitorlossfortheperiodinwhichtheplanisrevised.Thenetinterestisdeterminedbymultiplyingthedefinedbenefitplannetdebtornetassetsbytheappropriatediscountrate.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
41.Provisions
| Item | Closingbalance | Openingbalance | Reason |
| EstimatedexpensesonlandacquisitionandreservationforShangtouPort | 66,138,336.08 | 45,897,100.00 | |
| Pendinglitigation(Note) | 17,277,583.26 | 15,079,762.88 | Note |
| Salesdiscount | 16,990,826.32 | 15,265,697.07 | |
| Total | 100,406,745.66 | 76,242,559.95 |
Note:ThisrepresenttheestimatedcompensationamountthattheCompany'ssubsidiaryTCPmayneedtopaydue
tothependinglitigation.
42.Deferredincome
| Item | 1/1/2020 | Increaseinthecurrentyear | Decreaseinthecurrentyear | 31/12/2020 |
| Governmentgrants | 1,146,325,779.95 | 5,015,833.38 | 39,362,069.29 | 1,111,979,544.04 |
| Unrealizedsale-and-leasebackincome | 1,427,077.22 | - | 518,937.36 | 908,139.86 |
| Total | 1,147,752,857.17 | 5,015,833.38 | 39,881,006.65 | 1,112,887,683.90 |
Itemsinvolvinggovernmentgrantsareasfollows:
| Liabilities | 1/1/2020 | Newsubsidies | Recognizedinotherincome | 31/12/2020 | Relatedtoassets/relatedtoincome |
| Refundfrommarinereclamationland | 375,169,820.39 | - | 19,349,167.92 | 355,820,652.47 | Relatedtoassets |
| Channelwideningproject | 493,050,681.48 | - | 9,577,456.38 | 483,473,225.10 | Relatedtoassets |
| Specialsubsidiesforfacilitiesandequipment | 245,274,225.80 | 1,440,000.00 | 6,486,652.82 | 240,227,572.98 | Relatedtoassets |
| Governmentsubsidiesforintelligentsystem | 13,171,314.54 | 3,575,833.38 | 2,236,545.82 | 14,510,602.10 | Relatedtoassets |
| Refundoflandtransfercharges | 6,680,000.00 | - | 111,333.35 | 6,568,666.65 | Relatedtoassets |
| Greenlowcarbonportproject | 982,730.02 | - | 421,170.00 | 561,560.02 | Relatedtoassets |
| Others | 11,997,007.72 | - | 1,179,743.00 | 10,817,264.72 | Relatedtoassets |
| Total | 1,146,325,779.95 | 5,015,833.38 | 39,362,069.29 | 1,111,979,544.04 |
43.Othernon-currentliabilities
| Item | Closingbalance | Openingbalance |
| TCPoperatingrightsliability(Note1) | 2,888,395,641.53 | 3,326,952,857.86 |
| Actuarialcostforthecalculationofpensionbenefitsdifferenceforthepublicsecuritybureaustaff(Note2) | 162,810,000.00 | - |
| Berthprioritycallright(Note3) | 14,597,949.13 | 20,664,537.64 |
| Obligationtominorityshareholdersduetoacquisition | - | 732,733,351.01 |
| Total | 3,065,803,590.66 | 4,080,350,746.51 |
| Less:Othernon-currentliabilitiesduewithinoneyear | 83,582,696.63 | 825,835,439.66 |
| Including:TCPoperatingrightsliability | 67,272,696.63 | 93,102,088.65 |
| Actuarialcostforthecalculationofpensionbenefitsdifferenceforthepublicsecuritybureaustaff(Note2) | 16,310,000.00 | - |
| Obligationtominorityshareholdersduetoacquisition | - | 732,733,351.01 |
| Othernon-currentliabilitiesdueafteroneyear | 2,982,220,894.03 | 3,254,515,306.85 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
43.Othernon-currentliabilities-continued
Note1:Asat23February2018,CMPort,asubsidiaryoftheCompany,acquireda90%stakeinTCP
andincorporateitintotheconsolidatedfinancialstatementsoftheGroup.TCPhasoperationrighttheportofParanaguaupto2048.At31December2020,thepaymenttoacquiretheportoperationrightsiscalculatedbasedonlocalcomprehensivepriceindex.Note2:RefertoNote(V)49fordetails.Note3:Thisrepresentstheberthprioritycallrightasagreedinthecontractenteredintowiththeclientsin2003,
withtotalamountofUSD14million.TheGroupmustgiveprioritytotheberthingrequirementsofthecontractedcustomersduringthecontractperiod.TheGroupamortizedtheberthpriorityrightwithin20yearsusingstraight-linemethod.In2020,theamountincludedinoperatingincomeisRMB6,066,588.51.
44.Sharecapital
| Item | Openingbalance | Changesfortheyear | Closingbalance | ||||
| Newissueofshare(note) | Bonusissue | Capitalizationofsurplusreserve | Others | Sub-total | |||
| 2020 | |||||||
| I.Restrictedtradableshares | |||||||
| 1.State-ownedshares | - | - | - | - | - | - | - |
| 2.State-ownedlegalpersonshares | 128,952,746.00 | - | - | - | -128,952,746.00 | -128,952,746.00 | - |
| 3.Otherdomesticshares | 169,602.00 | - | - | - | -160,106.00 | -160,106.00 | 9,496.00 |
| 4.Foreignshares | 1,148,648,648.00 | - | - | - | - | - | 1,148,648,648.00 |
| Totalrestrictedtradableshares | 1,277,770,996.00 | - | - | - | -129,112,852.00 | -129,112,852.00 | 1,148,658,144.00 |
| II.Non-restrictedtradableshares | |||||||
| 1.OrdinarysharesdenominatedinRMB | 464,858,324.00 | - | - | - | 128,961,746.00 | 128,961,746.00 | 593,820,070.00 |
| 2.Foreigncapitalshareslisteddomestically | 179,735,804.00 | - | - | - | 151,106.00 | 151,106.00 | 179,886,910.00 |
| 3.Foreigncapitalshareslistedoverseas | - | - | - | - | - | - | - |
| 4.Others | - | - | - | - | - | - | - |
| Totalnon-restrictedtradableshares | 644,594,128.00 | - | - | - | 129,112,852.00 | 129,112,852.00 | 773,706,980.00 |
| III.Totalshares | 1,922,365,124.00 | - | - | - | - | - | 1,922,365,124.00 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
44.Sharecapital-continued
| Item | Openingbalance | Changesfortheyear | Closingbalance | ||||
| Newissueofshare(note) | Bonusissue | Capitalizationofsurplusreserve | Others | Sub-total | |||
| 2019 | |||||||
| I.Restrictedtradableshares | |||||||
| 1.State-ownedshares | - | - | - | - | - | - | - |
| 2.State-ownedlegalpersonshares | - | 128,952,746.00 | - | - | - | 128,952,746.00 | 128,952,746.00 |
| 3.Otherdomesticshares | 212,156.00 | - | - | - | -42,554.00 | -42,554.00 | 169,602.00 |
| 4.Foreignshares | 1,148,648,648.00 | - | - | - | - | - | 1,148,648,648.00 |
| Totalrestrictedtradableshares | 1,148,860,804.00 | 128,952,746.00 | - | - | -42,554.00 | 128,910,192.00 | 1,277,770,996.00 |
| II.Non-restrictedtradableshares | |||||||
| 1.OrdinarysharesdenominatedinRMB | 464,855,324.00 | - | - | - | 3,000.00 | 3,000.00 | 464,858,324.00 |
| 2.Foreigncapitalshareslisteddomestically | 179,696,250.00 | - | - | - | 39,554.00 | 39,554.00 | 179,735,804.00 |
| 3.Foreigncapitalshareslistedoverseas | - | - | - | - | - | - | - |
| 4.Others | - | - | - | - | - | - | - |
| Totalnon-restrictedtradableshares | 644,551,574.00 | - | - | - | 42,554.00 | 42,554.00 | 644,594,128.00 |
| III.Totalshares | 1,793,412,378.00 | 128,952,746.00 | - | - | - | 128,952,746.00 | 1,922,365,124.00 |
45.CapitalReserve
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| 2020 | ||||
| Capitalpremium | 22,183,597,895.33 | 731,489,964.17 | 218,667,827.13 | 22,696,420,032.37 |
| Including:Capitalcontributedbyinvestors | 7,012,992,483.94 | - | - | 7,012,992,483.94 |
| Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol | 13,311,099,845.41 | - | - | 13,311,099,845.41 |
| Differencesarisingfromacquisitionofminorityinterests(Note1) | 419,130,116.03 | 514,196,692.81 | 218,667,827.13 | 714,658,981.71 |
| Others(Note2) | 1,440,375,449.95 | 217,293,271.36 | - | 1,657,668,721.31 |
| OthercapitalReserve | 112,887,572.02 | 10,096,607.62 | 14,334,876.52 | 108,649,303.12 |
| Including:Transferfromcapitalreserveunderthepreviousaccountingsystem | -2,781,133.00 | - | - | -2,781,133.00 |
| Unexercisedshare-basedpayment | - | 10,096,607.62 | - | 10,096,607.62 |
| Otherchangesofowners'equityoftheinvesteeunderequitymethodotherthanchangesinnetprofitorloss,profitdistributionandothercomprehensiveincome | 115,668,705.02 | - | 14,334,876.52 | 101,333,828.50 |
| Total | 22,296,485,467.35 | 741,586,571.79 | 233,002,703.65 | 22,805,069,335.49 |
| 2019 | ||||
| Capitalpremium | 19,429,694,090.05 | 2,770,861,727.22 | 16,957,921.94 | 22,183,597,895.33 |
| Including:Capitalcontributedbyinvestors | 4,954,397,136.25 | 2,058,595,347.69 | - | 7,012,992,483.94 |
| Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol | 13,311,099,845.41 | - | - | 13,311,099,845.41 |
| Others | 1,164,197,108.39 | 712,266,379.53 | 16,957,921.94 | 1,859,505,565.98 |
| OthercapitalReserve | -2,781,133.00 | 129,059,971.90 | 13,391,266.88 | 112,887,572.02 |
| Including:Transferfromcapitalreserveunderthepreviousaccountingsystem | -2,781,133.00 | - | - | -2,781,133.00 |
| Otherchangesofowners'equityoftheinvesteeunderequitymethodotherthanchangesinnetprofitorloss,profitdistributionandothercomprehensiveincome | - | 129,059,971.90 | 13,391,266.88 | 115,668,705.02 |
| Total | 19,426,912,957.05 | 2,899,921,699.12 | 30,349,188.82 | 22,296,485,467.35 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
45.CapitalReserve-continuedNote1:Changesfortheyearinclude:
(1)TheCompanychosetoacquirethedividendsattributabletoCMPortinlieuofshares,whichincreasedthe
capitalreservebyRMB376,103,644.71.RefertoNote(VII)2fordetails.
(2)TheCompany'ssubsidiaryCMPortacquired10%oftheequityofTCPthroughitscontrollingsubsidiary
KongRiseDevelopmentLimited.Thedifferenceofthepaymentmadefortheequityacquisitionafterdeductingtheshareofthesubsidiary'snetassetscalculatedbytheacquiredproportionofequityandthefairvalueoftherelevantputoptionsandtheirchangeswasRMB534,509,477.23.TheCompanyreduceditscapitalreserveaccordingtoitsshareholdinginCMPortbyRMB218,667,827.13.RefertoNote(VII)2fordetails.
(3)TheCompany'ssubsidiaryCMPorttransferred23.5294%oftheequityofitssubsidiaryGainproResources
Limited(hereinafterreferredtoas"Gainpro")toFujianTransportationMaritimeSilkRoadInvestmentandManagementCo.Limited(hereinafterreferredtoas"FujianTransportationMaritimeSilkRoad").Thedifferenceofthereceivedcashconsiderationafterdeductingtheshareofthesubsidiary'snetassetscalculatedbytheproportionoftransferredequitywasRMB332,114,112.80.TheCompanyincreaseditscapitalreserveaccordingtoitsshareholdinginCMPortbyRMB138,093,048.10.RefertoNote(VII)2fordetails.Note2:TheincreasefortheyearismainlythetransferoftherefundedportconstructionfundoftheCompany's
subsidiaryZhanjiangPortfromthespecialpayablestothecapitalreserve.TheCompanyincreaseditscapitalreserveaccordingtoitsshareholdinginthesubsidiarybyRMB216,138,382.34.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
46.Othercomprehensiveincome
| Item | Openingbalance | 2020 | Less:Othercomprehensiveincomecarriedforwardtoretainedearnings | Closingbalance | ||||
| Pre-taxamountfortheyear | Less:Amountincludedinothercomprehensiveincomeinthepriorperiodstransferredtoprofitorlossinthisperiod | Less:Incometaxexpense | Post-taxincomeattributabletotheparentcompanyowner | Post-taxincomeattributabletominorityshareholders | ||||
| 2020 | ||||||||
| I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss | 82,969,758.27 | 6,911,190.88 | - | -33,528.75 | -1,552,867.01 | 8,497,586.64 | - | 81,416,891.26 |
| Including:Changesarisingfromremeasurementofdefinedbenefitsplan | 1,069,722.83 | 35,016,155.14 | - | - | 10,248,546.35 | 24,767,608.79 | - | 11,318,269.18 |
| Othercomprehensiveincomethatcan'tbetransferredtoprofitorlossunderequitymethod | 4,830,921.62 | -28,307,578.26 | - | - | -11,817,008.06 | -16,490,570.20 | - | -6,986,086.44 |
| Changesinfairvalueofotherequityinstruments | 77,069,113.82 | 202,614.00 | - | -33,528.75 | 15,594.70 | 220,548.05 | - | 77,084,708.52 |
| II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss | -438,914,324.18 | -1,856,601,660.49 | - | - | -469,199,870.14 | -1,387,401,790.35 | - | -908,114,194.32 |
| Including:Othercomprehensiveincomethatmaybetransferredtoprofitorlossunderequitymethod | -58,950,164.54 | 217,642,457.56 | - | - | 90,675,445.06 | 126,967,012.50 | - | 31,725,280.52 |
| Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | -379,964,159.64 | -2,074,244,118.05 | - | - | -559,875,315.20 | -1,514,368,802.85 | - | -939,839,474.84 |
| Totalothercomprehensiveincome | -355,944,565.91 | -1,849,690,469.61 | - | -33,528.75 | -470,752,737.15 | -1,378,904,203.71 | - | -826,697,303.06 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
46.Othercomprehensiveincome-continued
| Item | Openingbalance | 2019 | Less:Othercomprehensiveincomecarriedforwardtoretainedearnings | Closingbalance | ||||
| Pre-taxamountfortheyear | Less:Amountincludedinothercomprehensiveincomeinthepriorperiodstransferredtoprofitorlossinthisperiod | Less:Incometaxexpense | Post-taxincomeattributabletotheparentcompanyowner | Post-taxincomeattributabletominorityshareholders | ||||
| 2019 | ||||||||
| I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss | 75,673,134.08 | 19,605,662.56 | - | 985,483.75 | 9,090,184.52 | 9,529,994.29 | 1,793,560.33 | 82,969,758.27 |
| Including:Changesarisingfromremeasurementofdefinedbenefitsplan | - | 1,552,580.61 | - | - | 1,069,722.83 | 482,857.78 | - | 1,069,722.83 |
| Othercomprehensiveincomethatcan'tbetransferredtoprofitorlossunderequitymethod | - | 13,161,546.95 | - | - | 4,830,921.62 | 8,330,625.33 | - | 4,830,921.62 |
| Changesinfairvalueofotherequityinstruments | 75,673,134.08 | 4,891,535.00 | - | 985,483.75 | 3,189,540.07 | 716,511.18 | 1,793,560.33 | 77,069,113.82 |
| II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss | 13,252,844.49 | -1,114,906,073.32 | - | - | -452,167,168.67 | -662,738,904.65 | - | -438,914,324.18 |
| Including:Othercomprehensiveincomethatmaybetransferredtoprofitorlossunderequitymethod | 100,000.00 | -146,982,017.86 | - | - | -59,050,164.54 | -87,931,853.32 | - | -58,950,164.54 |
| Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | 13,152,844.49 | -967,924,055.46 | - | - | -393,117,004.13 | -574,807,051.33 | - | -379,964,159.64 |
| Totalothercomprehensiveincome | 88,925,978.57 | -1,095,300,410.76 | - | 985,483.75 | -443,076,984.15 | -653,208,910.36 | 1,793,560.33 | -355,944,565.91 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
47.Specialreserve
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| 2020 | ||||
| Productionsafetyreserve | 12,386,734.70 | 57,538,524.86 | 59,724,081.26 | 10,201,178.30 |
| 2019 | ||||
| Productionsafetyreserve | 8,231,080.43 | 108,062,435.41 | 103,906,781.14 | 12,386,734.70 |
48.Surplusreserve
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| 2020 | ||||
| Statutorysurplusreserve | 630,345,307.43 | 260,345,014.85 | - | 890,690,322.28 |
| 2019 | ||||
| Statutorysurplusreserve | 527,175,908.67 | 103,169,398.76 | - | 630,345,307.43 |
49.Unappropriatedprofit
| Item | Amount | Proportionofappropriationorallocation |
| 2020 | ||
| Unappropriatedprofitattheendoflastyear | 11,467,166,351.85 | |
| Add:Netprofitoftheyearattributabletoshareholdersoftheparent | 2,065,322,969.66 | |
| PensionBenefits | -73,228,871.09 | Note1 |
| Others | 1,549,916.64 | |
| Less:Appropriationtostatutorysurplusreserve | 260,345,014.85 | |
| Appropriationtodiscretionarysurplusreserve | - | |
| Appropriationtogeneralriskreserve | - | |
| Ordinaryshares'dividendspayable | 884,287,957.04 | Note2 |
| Ordinaryshares'dividendsconvertedintosharecapital | - | |
| Unappropriatedprofitattheendoftheyear | 12,316,177,395.17 | |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
49.Unappropriatedprofit-continued
| Item | Amount | Proportionofappropriationorallocation |
| 2019 | ||
| Unappropriatedprofitattheendofprioryearbeforeadjustment | 8,915,817,110.21 | |
| Adjustmentoftotalunappropriatedprofitatthebeginningofyear | -41,018,077.68 | |
| Unappropriatedprofitatthebeginningofyearafteradjustment | 8,874,799,032.53 | |
| Add:NetprofitattributabletoshareholdersoftheCompanyfortheyear | 2,898,192,168.84 | |
| Others | 1,793,560.33 | |
| Less:Appropriationtostatutorysurplusreserve | 103,169,398.76 | |
| Appropriationtodiscretionarysurplusreserve | - | |
| Appropriationtogeneralriskreserve | - | |
| Ordinaryshares'dividendspayable | 204,449,011.09 | |
| Ordinaryshares'dividendsconvertedintosharecapital | - | |
| Unappropriatedprofitattheendoftheyear | 11,467,166,351.85 | |
Note1:InaccordancewiththeNoticeonIssuingthePlanforDeepingAdministrationSystemReformofPort&
ChannelPublicSecurityAuthorities(No.327[2017],StateCommissionOfficeofPublicSectorsReform)andtheNoticeonIssuingtheImplementationPlanforDeepingAdministrationSystemReformofPort&ChannelPublicSecurityAuthorities(No.221[2018],GuangdongCommissionOfficeofPublicSectorsReform),in2020,ZhanjiangPort,asubsidiaryoftheCompany,transferredtheZhanjiangPortPublicSecurityBureautoZhanjiangMunicipalGovernment,whicharefullytakenoverbytheZhanjiangMunicipalPublicSecurityBureau.TherelevantassetsoftheformerZhanjiangPortPublicSecurityBureau,totallingRMB11,372,339.22,weretransferredtoZhanjiangMunicipalGovernment,thepolicein-serviceweretransitionedtocivilservantsinaccordancewithnationalregulations,theretiredpolicewereincludedinthejurisdictionofthepensioninsuranceofstateorgansandpublicinstitutions,andthedifferencebetweentheoriginalstandardofpensionbenefitsandtheretirementbenefitsoftheZhanjiangmunicipalpolice(hereinafterreferredtoasthe"pensionbenefitsdifference")shallbebornebyZhanjiangPort.ZhanjiangPortengagedTowersWatsonConsulting(Shenzhen)Co.,Ltd.toperformactuarialcalculationsonthedifferenceinpensionbenefitsofretiredpolice,andaccruedrelevantliabilitiesofRMB162,810,000.00ontheactuarialresults.InaccordancewithNoticebytheMinistryofFinanceonFinancialManagementIssuesRelatingtotheSeparationofSocialFunctionsofEnterprises(No.62[2005],CaiQi),theabove-mentionedmattersresultedinatotaleliminationofRMB174,110,113.73fromtheunappropriatedprofitofZhanjiangPortfortheyear,andacorrespondingeliminationofRMB73,228,871.09fromtheunappropriatedprofitoftheCompanyinproportiontotheCompany'sequityinterestinZhanjiangPort.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
49.Unappropriatedprofit-continuedNote2:Accordingtotheresolutionofshareholdersmeetingon22May2020,theCompanydistributescash
dividendsofRMB4.60(inclusiveoftax)forevery10shares,totallingtoRMB884,287,957.04onthebasisofthetotalsharesof1,922,365,124sharesattheendof2019.Note3:Profitdistributionafterthebalancesheetdate
Accordingtotheprofitdistributionplanfor2020,approvedbythe[10
th
]boardofdirectorsatthe[3
th
]meetingon29/03/2021,theCompany,basedonthetotalsharesof1,922,365,124onthe31December2020,woulddistributecashdividendsatanamountofRMB730,498,747.12.Theaboveprofitdistributionplanhasyetbeenapprovedbyshareholdersmeeting.
50.Operatingincomeandoperatingcosts
(1)Operatingincomeandoperatingcosts
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | ||
| Income | Cost | Income | Cost | |
| Principaloperation | 12,465,115,944.45 | 7,652,480,534.91 | 11,958,482,255.05 | 7,425,898,430.33 |
| Otheroperations | 153,414,051.57 | 221,269,319.94 | 165,347,168.69 | 223,022,489.38 |
| Total | 12,618,529,996.02 | 7,873,749,854.85 | 12,123,829,423.74 | 7,648,920,919.71 |
(2)Revenuefromcontracts
| Categoriesofcontracts | Portsoperation | Bondedlogisticsoperation | Otheroperations | Total |
| MainlandChina,HongKongandTaiwanarea | 8,572,810,408.71 | 391,346,440.50 | 153,414,051.57 | 9,117,570,900.78 |
| -PearlRiverDelta | 5,103,018,820.66 | 266,096,953.36 | 153,414,051.57 | 5,522,529,825.59 |
| -YangtzeRiverDelta | 73,413,401.10 | - | - | 73,413,401.10 |
| -BohaiRim | 62,661,236.23 | 125,249,487.14 | - | 187,910,723.37 |
| -Otherareas | 3,333,716,950.72 | - | - | 3,333,716,950.72 |
| Othercountries | 3,474,914,093.88 | 26,045,001.36 | - | 3,500,959,095.24 |
| Total | 12,047,724,502.59 | 417,391,441.86 | 153,414,051.57 | 12,618,529,996.02 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
50.Operatingincomeandoperatingcosts-continued
(3)DescriptionofperformanceobligationsTheGroupprovideswharfservice,bondedlogisticsserviceandotherservices.Theseservicesareobligationsperformedoveraperiodoftime.Forwharfservices,asthehandlingtimeforcontainersandbulkcargosisshort,themanagementbelievesthatitisnotnecessarytorecognizerevenueaccordingtotheprogresstowardsthecompletionofcontractanditisanappropriatemethodtorecognizethefulfilmentofperformanceobligationandrevenueuponthecompletionoftheservice.Forbondedlogisticsserviceandotherservices,thecustomersevenlyobtainsandconsumestheeconomicbenefitsfromtheGroup'sperformanceofcontract,meanwhilethechargingrulesasagreedinthecontracttermsusuallyadoptdaily/month/yearlybasis.Duringtheprocessofrenderingservices,theGrouprecognizesrevenueusingstraight-linemethod.PartoftheGroup'shandlingcontractsareestablishedwithdiscountterms,i.e.thecustomerswhosebusinessvolumereachesagreedlevel,aregrantedwithpreferentialchargerateordiscount.Attheendoftheyear,asthebusinessquantityfinallyrealizedwithinthecontractperiodisuncertain,thecontractconsiderationissubjecttovariablefactors.Themanagementincludedthispartofdiscountinprovisions.DetailsaresetoutinNote(V)41.TheGroup'srevenuecontractdoesnothavesignificantfinancingcomponents.
(4)Attheendoftheyear,thevariableconsiderationofRMB16,990,826.32
(31December2019:RMB15,265,697.07)arisingfromsalesdiscountisnotincludedinthetransactionpriceduetotherestrictionrequirementsrelatingtovariableconsiderations.
51.Taxesandsurcharges
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Propertytax | 57,039,293.40 | 45,998,786.01 |
| Landusetax | 33,997,061.02 | 32,116,936.18 |
| Stampduty | 7,540,714.68 | 4,948,743.36 |
| Cityconstructionandmaintenancetax | 6,960,172.96 | 6,188,074.98 |
| Educationsurchargesandlocaleducationsurcharges | 5,198,771.63 | 4,866,915.60 |
| Others(Note) | 40,460,929.88 | 78,437,123.79 |
| Total | 151,196,943.57 | 172,556,579.92 |
Note:Othersmainlyrepresent(1)ProgramofSocialIntegrationandContributionfortheFinancingofSocial
Security(taxonenterpriseincome)andTaxonServices(taxbasedonservicesrendered)bornebyTCP,asubsidiaryoftheCompany,totalledBRL23,076,661.64(equivalenttoRMB34,531,567.04)fortheyear.(2)TheenvironmentalprotectiontaxbornebyZhanjiangPort,asubsidiaryoftheCompany,amountedtoRMB5,357,096.48fortheyear.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
52.Administrativeexpenses
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Employee'ssalary | 1,089,142,762.24 | 980,074,507.53 |
| Depreciationexpenses | 83,029,752.43 | 74,954,306.82 |
| Feespaidtoagencies | 72,867,327.15 | 55,258,915.07 |
| Amortizationofintangibleassets | 63,903,389.47 | 58,414,351.33 |
| Others | 275,939,703.73 | 340,818,500.91 |
| Total | 1,584,882,935.02 | 1,509,520,581.66 |
53.Financialexpenses
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Interestexpense | 1,915,963,616.06 | 2,018,175,947.65 |
| Less:Capitalizedinterestexpenses | 65,255,075.44 | 35,175,196.89 |
| Less:Interestincome | 325,387,744.56 | 252,060,018.58 |
| Exchangedifferences | 99,173,836.07 | 106,836,843.78 |
| Handlingfee | 19,293,388.81 | 56,876,221.78 |
| Others | -415,864,228.16 | 37,236,030.34 |
| Interestexpensesofleaseliabilities | 4,805,832.04 | 4,379,909.45 |
| Total | 1,232,729,624.82 | 1,936,269,737.53 |
54.Otherincome
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Centralspecialfinancialfundforthedevelopmentoftherentalhousingmarket | 73,356,900.00 | - |
| Transferredfromallocationofdeferredincome | 39,362,069.29 | 37,903,296.88 |
| AdditionaldeductionofVAT | 17,977,697.02 | 13,268,318.27 |
| Governmentsubsidiesforbusinessdevelopment | 16,666,657.00 | 71,492,270.22 |
| Refundofunemploymentinsurancepremium | 13,701,836.63 | - |
| Specialfundforinnovation | 11,662,568.44 | 9,802,600.00 |
| Subsidiesforpreventingepidemics | 6,670,018.69 | - |
| Facilityconstructionfund | 5,799,000.00 | 5,448,613.20 |
| Specialfundforoperation | 4,530,545.00 | 8,402,815.28 |
| Steadypostsubsidies | 4,286,036.86 | 1,985,363.23 |
| Refundofwithholdingtaxes | 2,655,040.88 | 6,903,526.71 |
| Airenvironmentqualityimprovementsubsidy | 1,544,768.00 | - |
| Value-addedtaxleviedandimmediatelyreturnedforsoftwareproducts | 1,438,961.78 | - |
| Specialfundforpromotinghigh-qualitydevelopmentofeconomy | - | 1,000,000.00 |
| Others | 5,313,013.69 | 5,894,309.31 |
| Total | 204,965,113.28 | 162,101,113.10 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
55.Investmentincome(lossismarkedwith"-")
(1)Detailsofinvestmentincome:
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Long-termequityinvestmentsincomeunderequitymethod | 3,988,916,963.08 | 3,727,850,763.22 |
| Including:Long-termequityinvestmentsincomeofassociatesunderequitymodel | 3,630,921,407.38 | 3,259,151,741.65 |
| Including:Long-termequityinvestmentsincomeofjointventureunderequitymodel | 357,995,555.70 | 468,699,021.57 |
| Gainsfromremeasurementofpreviouslyheldequityatfairvalueuponobtainingthecontrol(Note) | 753,988,749.80 | 845,432,476.22 |
| Investmentincomeonheld-for-tradingfinancialassets | 10,181,238.09 | - |
| Investmentincomeonothernon-currentfinancialassets | 83,138,043.43 | 127,790,790.54 |
| Investmentincomeondisposalofothernon-currentfinancialassets(lossismarkedwith"-") | 1,850,600.00 | -407,903.18 |
| Dividendincomeonotherequityinstruments | 8,568,250.21 | 10,942,760.11 |
| Interestincomeondebtinvestments | 59,331,593.61 | 20,352,987.67 |
| Others | - | -112,788,119.16 |
| Total | 4,905,975,438.22 | 4,619,173,755.42 |
Note:RefertoNote(VI)1fordetails.
(2)Detailsoflong-termequityinvestmentsincomeunderequitymethod
| Investee | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Reasonforchanges |
| ShanghaiInternationalPort(Group)Co.,Ltd. | 2,234,593,249.98 | 2,425,921,985.71 | Changesinnetprofitofinvestee |
| NanshanGroup | 424,745,838.41 | 242,285,185.34 | Changesinnetprofitofinvestee |
| ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd. | 335,639,784.43 | -5,514,066.49 | Changesinnetprofitofinvestee |
| TerminalLinkSAS | 312,427,210.29 | 280,560,341.83 | Changesinnetprofitofinvestee |
| LiaoningPortCo.,Ltd. | 169,692,898.03 | 148,347,321.32 | Changesinnetprofitofinvestee |
| NingboDaxie | 112,101,331.18 | 120,498,548.83 | Changesinnetprofitofinvestee |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | 102,594,175.95 | 142,602,575.17 | Changesinnetprofitofinvestee |
| ModernTerminalsLimited | 79,503,339.53 | 65,866,911.57 | Changesinnetprofitofinvestee |
| Euro-AsiaOceangate,S.a`r.l. | 71,938,690.26 | 71,820,758.28 | Changesinnetprofitofinvestee |
| ZhanjiangMerchantsPortCityInvestmentCo.,Ltd. | 47,450,708.28 | -8,749,223.97 | Changesinnetprofitofinvestee |
| Others | 98,229,736.74 | 244,210,425.63 | Changesinnetprofitofinvestee |
| Total | 3,988,916,963.08 | 3,727,850,763.22 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
56.Gainsonchangesinfairvalue(lossismarkedwith"-")
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Held-for-tradingfinancialassets | -226,508.15 | - |
| Othernon-currentfinancialassets | 269,099,721.85 | 431,344,898.81 |
| Including:Financialassetsatfairvaluethroughprofitorloss | 269,099,721.85 | 431,344,898.81 |
| Othernon-currentliabilities | -680,381,987.28 | -364,861,632.33 |
| Including:Financialliabilitiesatfairvaluethroughprofitorloss | -680,381,987.28 | -364,861,632.33 |
| Total | -411,508,773.58 | 66,483,266.48 |
57.Gainsonimpairmentofcredit(lossismarkedwith"-")
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| I.Gainsonimpairmentofcreditofaccountsreceivable(lossismarkedwith"-") | 19,219,046.93 | -51,878,244.38 |
| II.Gainsonimpairmentofcreditofotherreceivables(lossismarkedwith"-") | -475,764,740.63 | 1,682,076.71 |
| III.Gainsonimpairmentofcreditoflong-termreceivables(lossismarkedwith"-") | -2,049,967.61 | -1,082,720.15 |
| IV.Others | - | 1,029,478.05 |
| Total | -458,595,661.31 | -50,249,409.77 |
58.Gainsfromimpairmentofassets(lossismarkedwith"-")
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Gainsfromdeclineinvalueofinventories | 947,694.12 | 25,051.16 |
| Lossesongoodwillimpairments | -552,317,736.65 | - |
| Total | -551,370,042.53 | 25,051.16 |
59.Gainsondisposalofassets(lossismarkedwith"-")
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentyear |
| Gainsondisposalofnon-currentassets(Note) | 1,489,206,502.32 | 4,794,562,782.79 | 1,489,206,502.32 |
| Including:Gainsondisposaloffixedassets(lossismarkedwith"-") | -50,184,379.22 | 6,759,787.47 | -50,184,379.22 |
| Gainsondisposalofintangibleassets | 1,480,715,445.14 | 1,108,671,001.98 | 1,480,715,445.14 |
| Gainsondisposalofconstructioninprogress | 59,164,336.00 | 47,902,373.19 | 59,164,336.00 |
| Others | -488,899.60 | 3,631,229,620.15 | -488,899.60 |
Note:ItmainlyrepresentsthecompensationgainsofRMB1,531,862,344.99fromlandacquisitionandreservation
ofShantouPort,asubsidiaryoftheCompany.PleaserefertoNote(V)7fordetails.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
60.Non-operatingincome
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentyear |
| Governmentsubsidy | 53,884,602.38 | 485,929.28 | 53,884,602.38 |
| Insurancecompensationreceived | 3,548,709.63 | - | 3,548,709.63 |
| Gainsfromtheretirementofdamagednon-currentassets | 3,272,216.69 | 3,431,545.27 | 3,272,216.69 |
| Compensationreceivedforcontractsviolation | 3,074,739.23 | 14,444,165.81 | 3,074,739.23 |
| Exemptedaccountcurrents | 2,603,213.36 | 2,026,044.81 | 2,603,213.36 |
| Operationcompensation | - | 488,492,798.26 | - |
| Others | 15,255,579.25 | 44,222,876.98 | 15,255,579.25 |
| Total | 81,639,060.54 | 553,103,360.41 | 81,639,060.54 |
61.Non-operatingexpenses
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Donations | 29,768,154.87 | 31,344,046.81 | 29,768,154.87 |
| Stabilitymaintenancehousingsubsidy | 13,500,000.00 | - | 13,500,000.00 |
| Lossesonretirementofnon-currentassets | 11,905,789.11 | 24,459,845.75 | 11,905,789.11 |
| Compensation,liquidateddamagesandpenalties | 9,131,029.28 | 5,574,036.67 | 9,131,029.28 |
| Litigationloss | 7,992,269.39 | 438,712.24 | 7,992,269.39 |
| Others | 6,706,498.12 | 8,635,370.93 | 6,706,498.12 |
| Total | 79,003,740.77 | 70,452,012.40 | 79,003,740.77 |
62.Incometaxexpenses
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Currentincometaxexpenses | 1,303,748,401.73 | 2,308,373,316.21 |
| Deferredincometaxexpenses | -28,062,031.90 | 332,165,578.41 |
| Total | 1,275,686,369.83 | 2,640,538,894.62 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
62.Incometaxexpenses-continuedReconciliationofincometaxexpensestotheaccountingprofitisasfollows:
| Item | Amountincurredinthecurrentperiod |
| Grossprofit | 6,801,254,420.39 |
| Incometaxexpensescalculatedat25% | 1,700,313,605.10 |
| Effectofnon-deductiblecost,expensesandlosses | 452,645,594.53 |
| Accruedincometaxexpenses | 757,856,918.42 |
| Effectofdeductibletemporarydifferencesanddeductiblelossesforwhichthedeferredtaxassetsarenotrecognizedincurrentperiod | 79,218,381.58 |
| Effectoftax-freeincome(Note) | -1,048,022,499.09 |
| Effectoftaxincentivesandchangesoftaxrate | -309,332,989.66 |
| Effectofdifferenttaxratesofsubsidiariesoperatinginotherjurisdictions | -262,775,668.86 |
| Effectofutilizingdeductiblelossesforwhichthedeferredtaxassetswerenotrecognizedinpriorperiod | -33,602,540.09 |
| Effectofadjustmentstoprior-yearincometax | -22,647,137.52 |
| Changesintheopeningbalanceofdeferredtaxassets/liabilitiesduetotaxadjustments | -12,996,277.16 |
| Others | -24,971,017.42 |
| Incometaxexpenses | 1,275,686,369.83 |
Note:Thismainlyrepresentsthetaxeffectoninvestmentincomefromjointventureandassociates.
63.Assetswithrestrictedownershiporuseright
| Item | Closingbalance | Openingbalance |
| Cashandbankbalances(Note1) | 11,528,570.90 | 15,648,978.15 |
| EquityinvestmentinColomboInternationalContainerTerminalsLimited(Note2) | 1,626,554,439.58 | 1,591,452,920.23 |
| EquityinvestmentinThesarMaritimeLimited(Note2) | 859,148,327.98 | 799,684,707.77 |
| Fixedassets(Note3) | 341,931,071.09 | 349,612,960.23 |
| Intangibleassets(Note3) | 218,825,477.36 | 345,131,760.52 |
| Constructioninprogress(Note3) | 43,751,101.60 | 23,840,920.42 |
| Total | 3,101,738,988.51 | 3,125,372,247.32 |
Note1:DetailsofrestrictedcashandbankbalancesaresetoutinNote(V)1.Note2:DetailsofmortgagedequityandinterestsaresetoutinNote(V)36.Note3:YidePortmortgageditslanduserights,fixedassetsandconstructioninprogresstoobtainbank
borrowings;ShenzhenHaixingHarborDevelopmentCo.,Ltd.mortgageditslanduserightstoobtainbankborrowings;DongguanChiwanWarfCo.,Ltd.mortgageditsseaareauserighttoobtainbankborrowings.DetailsofmortgageborrowingsaresetoutinNote(V)36.
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
64.Othercomprehensiveincome
DetailsaresetoutinNote(V)46.
65.Itemsincashflowstatement
(1)Othercashreceiptsrelatingtooperatingactivities:
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Governmentgrants | 203,870,741.85 | 614,567,707.23 |
| Interestincome | 196,435,428.56 | 212,679,224.25 |
| Guaranteesanddeposits | 64,688,970.41 | 30,791,091.36 |
| Insuranceindemnities | 11,043,593.46 | 4,565,218.67 |
| Rentals | 10,735,793.35 | 16,310,934.86 |
| Refundofportconstructionfeeandservicecharges | 1,660,916.38 | 2,803,216.00 |
| Compensationfromcontracts | - | 13,860,280.30 |
| Others | 327,481,343.25 | 270,133,172.51 |
| Total | 815,916,787.26 | 1,165,710,845.18 |
(2)Othercashpaymentsrelatingtooperatingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Operatingexpensessuchasoperatingcostsandadministrationexpenseetc. | 183,167,316.54 | 201,645,233.00 |
| Advancepayment | 139,587,590.26 | 177,076,380.78 |
| Guaranteesanddeposits | 34,084,841.10 | 20,638,334.19 |
| Rentals | 23,217,510.11 | 31,228,253.07 |
| Portconstructionfee | 11,661,727.63 | 26,478,534.06 |
| Portcharges | 7,481,400.21 | 8,187,025.59 |
| Harborduesoncargo | - | 3,138,152.55 |
| Others | 352,769,397.12 | 341,307,637.90 |
| Total | 751,969,782.97 | 809,699,551.14 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
65.Itemsincashflowstatement-continued
(3)Othercashreceiptsrelatingtoinvestingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Recoveredprincipalfortheadvancesoftheproject | 825,670,000.00 | - |
| Netcashreceiptsbyacquiringsubsidiariesandotherbusinessentities(Note) | 317,470,188.12 | 845,457,228.45 |
| ReceivedcompensationforthetransitionperiodofZhanjiangPort | 87,104,514.28 | - |
| Recoveredlendings | 33,282,119.52 | 1,018,695,828.48 |
| ZhanjiangPortTransitionCompensation | 3,803,477.07 | - |
| RecoveredrestricteddepositsintheacquisitionoftheHambantotaPort | - | 1,001,472,400.00 |
| Recoveredprincipalofstructuraldepositsthatcannotbewithdrawnatanytime | - | 314,000,000.00 |
| Receiptfromcreditassignment | - | 356,137,574.00 |
| Others | 186,182,916.72 | 204,000.00 |
| Total | 1,453,513,215.71 | 3,535,967,030.93 |
Note:RefertoNote(V)65(4)fordetails.
(4)Netcashreceiptsforacquiringsubsidiariesandotheroperatingunits
| Item | Amountincurredinthecurrentperiod |
| Cashandcashequivalentspaidforbusinesscombinationinthecurrentyear | - |
| Including:NingboDaxie | - |
| Less:Cashandcashequivalentsheldbysubsidiariesattheacquisitiondate | 317,470,188.12 |
| Including:NingboDaxie | 317,470,188.12 |
| Netcashpaymentsforacquisitionofsubsidiaries | -317,470,188.12 |
| Including:NingboDaxie | -317,470,188.12 |
(5)Othercashpaymentsrelatingtoinvestingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Structureddepositthatisnotreadilyforwithdrawal | - | 1,610,000,000.00 |
| Debttransferpayment | - | 356,137,574.00 |
| Relatedpartyborrowings | 3,009,744,121.38 | 104,390,000.00 |
| Supplementarypaymentoftaxonsignificantassetsrestructuring | - | 68,423,555.78 |
| Others | 26,229.24 | - |
| Total | 3,009,770,350.62 | 2,138,951,129.78 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
65.Itemsincashflowstatement-continued
(6)Othercashreceiptsrelatingtofinancingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| ProceedsofCMPortfromdisposalofpartofequityofsubsidiaries | 1,851,325,647.36 | 1,713,327,483.01 |
| EquitycapitalrecoveredfromminorityshareholdersforShantouPort | 82,129,289.00 | - |
| Recoveredfinancingleasedeposits | 4,500,000.00 | - |
| Total | 1,937,954,936.36 | 1,713,327,483.01 |
(7)Othercashpaymentsrelatingtofinancingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| AmountpaidbyCMPortfortheacquisitionofminorityshareholders'equities | 755,398,999.97 | - |
| PaymentsfortheliquidationofShantouPort'ssubsidiaries | 82,129,289.00 | - |
| Bondsissuancecost | - | 6,600,000.00 |
| Repaymentofadvancesofshareholders | - | 1,592,783.29 |
| Others | 5,033,180.99 | 34,391,014.26 |
| Total | 842,561,469.96 | 42,583,797.55 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
66.Supplementaryinformationtothecashflowstatement
(1)Supplementaryinformationtothecashflowstatement
| Supplementaryinformation | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| 1.Reconciliationofnetprofittocashflowsfromoperatingactivities: | ||
| Netprofit | 5,525,568,050.56 | 8,166,917,273.20 |
| Add:Provisionforimpairmentlossesofassets | 551,370,042.53 | -25,051.16 |
| Provisionforimpairmentlossesofcredit | 458,595,661.31 | 50,249,409.77 |
| Depreciationoffixedassets | 1,811,160,796.05 | 1,681,007,226.50 |
| Depreciationofinvestmentproperty | 189,954,310.24 | 190,418,170.86 |
| Depreciationofright-of-useassets | 355,744,855.65 | 328,886,210.72 |
| Amortizationofintangibleassets | 609,540,465.06 | 632,626,770.16 |
| Amortizationoflong-termprepaidexpenses | 45,482,342.76 | 31,586,968.21 |
| Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets(gainismarkedwith"-") | -1,489,206,502.32 | -4,794,562,782.79 |
| Lossesonretirementoffixedassets,intangibleassetsandotherlong-termassets | 8,633,572.42 | 24,459,845.75 |
| Lossesonchangesinfairvalue(gainismarkedwith"-") | 411,508,773.58 | -66,483,266.48 |
| Financialexpenses | 1,305,513,925.66 | 2,127,073,624.88 |
| Investmentloss(gainismarkedwith"-") | -4,905,975,438.22 | -4,619,173,755.42 |
| Decreaseindeferredtaxassets(increaseismarkedwith"-") | -120,295,556.03 | -191,905,933.39 |
| Increaseindeferredtaxliabilities | 92,233,524.13 | 524,071,511.80 |
| Decreaseininventories(increaseismarkedwith"-") | -38,670,837.40 | -11,704,381.63 |
| Decreaseinoperatingreceivables(increaseismarkedwith"-") | -449,965,094.91 | -2,391,266,937.99 |
| Increaseinoperatingpayables | 1,134,608,025.94 | 3,819,698,512.95 |
| Netcashflowsfromoperatingactivities | 5,495,800,917.01 | 5,501,873,415.94 |
| 2.Significantinvestingandfinancingactivitiesthatdonotinvolvecashreceiptsandpayments: | ||
| Conversionofdebtintocapital | - | - |
| Convertiblebondsduewithinoneyear | - | - |
| Fixedassetsacquiredunderfinanceleases | - | - |
| 3.Netchangesincashandcashequivalents: | ||
| Closingbalanceofcash | 11,771,619,303.21 | 7,714,157,995.87 |
| Less:Openingbalanceofcash | 7,714,157,995.87 | 5,373,281,504.75 |
| Add:Closingbalanceofcashequivalents | - | - |
| Less:Openingbalanceofcashequivalents | - | - |
| Netincreaseincashandcashequivalents | 4,057,461,307.34 | 2,340,876,491.12 |
(2)Cashandcashequivalents
| Item | Closingbalance | Openingbalance |
| I.Cash | 11,771,619,303.21 | 7,714,157,995.87 |
| Including:Cashonhand | 570,307.93 | 331,305.65 |
| Bankdepositsavailableforpaymentatanytime | 11,418,758,567.44 | 7,422,490,058.00 |
| Othermonetaryfundsavailableforpaymentatanytime | 352,290,427.84 | 291,336,632.22 |
| II.Cashequivalents | - | - |
| III.Balanceofcashandcashequivalentsattheendoftheyear | 11,771,619,303.21 | 7,714,157,995.87 |
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(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
67.Foreigncurrencymonetaryitems
| Item | Closingbalanceofforeigncurrency | Exchangerate | ClosingamountinRMB |
| Cashandbankbalances | 1,905,475,474.78 | ||
| Including:HKD | 56,199,956.09 | 0.8416 | 47,297,883.05 |
| USD | 56,276,436.51 | 6.5249 | 367,198,120.58 |
| EUR | 45,659,283.84 | 8.0250 | 366,415,752.82 |
| RMB | 1,124,563,718.33 | 1.0000 | 1,124,563,718.33 |
| Accountsreceivable | 203,448,369.46 | ||
| Including:HKD | 3,821,664.96 | 0.8416 | 3,216,313.23 |
| USD | 4,757,977.91 | 6.5249 | 31,045,330.06 |
| EUR | 21,082,458.09 | 8.0250 | 169,186,726.17 |
| Otherreceivables | 1,065,027,108.18 | ||
| Including:HKD | 30,806,619.51 | 0.8416 | 25,926,850.98 |
| USD | 9,905,236.96 | 6.5249 | 64,630,680.64 |
| EUR | 94,429,498.59 | 8.0250 | 757,796,726.18 |
| RMB | 216,672,850.38 | 1.0000 | 216,672,850.38 |
| Non-currentassetsduewithinoneyear | 51,286,674.10 | ||
| Including:USD | 7,860,147.14 | 6.5249 | 51,286,674.10 |
| Long-termreceivables | 2,746,067,386.31 | ||
| Including:USD | 420,859,689.24 | 6.5249 | 2,746,067,386.31 |
| Short-termborrowings | 1,320,810,000.00 | ||
| Including:HKD | 200,000,000.00 | 0.8416 | 168,320,000.00 |
| USD | 100,000,000.00 | 6.5249 | 652,490,000.00 |
| RMB | 500,000,000.00 | 1.0000 | 500,000,000.00 |
| Accountspayable | 30,525,030.58 | ||
| Including:HKD | 4,562,063.34 | 0.8416 | 3,839,432.51 |
| USD | 31,136.44 | 6.5249 | 203,162.16 |
| EUR | 3,299,260.30 | 8.0250 | 26,476,563.91 |
| RMB | 5,872.00 | 1.0000 | 5,872.00 |
| Otherpayables | 766,503,180.60 | ||
| Including:HKD | 40,249,878.84 | 0.8416 | 33,874,298.03 |
| USD | 78,182,967.43 | 6.5249 | 510,136,044.18 |
| EUR | 16,901,281.16 | 8.0250 | 135,632,781.31 |
| RMB | 86,860,057.08 | 1.0000 | 86,860,057.08 |
| Non-currentliabilitiesduewithinoneyear | 426,641,874.26 | ||
| Including:USD | 6,821,555.12 | 6.5249 | 44,509,965.01 |
| EUR | 36,975,000.00 | 8.0250 | 296,724,375.00 |
| RMB | 85,407,534.25 | 1.0000 | 85,407,534.25 |
| Long-termborrowings | 3,170,840,790.00 | ||
| Including:USD | 229,600,000.00 | 6.5249 | 1,498,117,040.00 |
| EUR | 124,950,000.00 | 8.0250 | 1,002,723,750.00 |
| RMB | 670,000,000.00 | 1.0000 | 670,000,000.00 |
| Bondspayable | 18,720,930,378.52 | ||
| Including:USD | 2,486,004,441.22 | 6.5249 | 16,220,930,378.52 |
| RMB | 2,500,000,000.00 | 1.0000 | 2,500,000,000.00 |
| Long-termpayables | 1,188,465,420.57 | ||
| Including:EUR | 54,484,576.49 | 8.0250 | 437,238,325.33 |
| USD | 115,132,353.79 | 6.5249 | 751,227,095.24 |
-135-
(V)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
68.Governmentgrants
| Type | Amount | Item | Presentationaccount | Amountincludedinprofitorlossfortheperiod |
| Relatedtoincome | 73,356,900.00 | Specialcentralbudgetforthedevelopmentoftherentalhousingmarket | Otherincome | 73,356,900.00 |
| Relatedtoincome | 52,970,000.00 | Subsidiariesofintroducinginvestment | Non-operatingincome | 52,970,000.00 |
| Relatedtoincome | 16,666,657.00 | Governmentsubsidiesforbusinessdevelopment | Otherincome | 16,666,657.00 |
| Relatedtoincome | 13,701,836.63 | Refundofunemploymentinsurancepremium | Otherincome | 13,701,836.63 |
| Relatedtoincome | 11,662,568.44 | Specialfundforinnovation | Otherincome | 11,662,568.44 |
| Relatedtoincome | 6,670,018.69 | Subsidiesforpreventingepidemics | Otherincome | 6,670,018.69 |
| Relatedtoincome | 5,799,000.00 | Subsidiesfortheconstructionofshore-to-shippowersupplysystem | Otherincome | 5,799,000.00 |
| Relatedtoincome | 5,015,833.38 | Subsidiesofintelligentsystemandfacilitiesandequipment | Deferredincome | - |
| Relatedtoincome | 4,530,545.00 | Specialfundforoperation | Otherincome | 4,530,545.00 |
| Relatedtoincome | 4,286,036.86 | Steadypostsubsidies | Otherincome | 4,286,036.86 |
| Relatedtoincome | 1,544,768.00 | Airenvironmentqualityimprovementsubsidy | Otherincome | 1,544,768.00 |
| Relatedtoincome | 1,438,961.78 | value-addedtaxleviedandimmediatelyreturnedforsoftwareproducts | Otherincome | 1,438,961.78 |
| Relatedtoincome | 5,313,013.69 | Others | Otherincome | 5,313,013.69 |
| Relatedtoincome | 914,602.38 | Others | Non-operatingincome | 914,602.38 |
| Total | 203,870,741.85 | 198,854,908.47 |
69.Lease
Undiscountedleasereceiptssubsequenttothebalancesheetdateareasfollows:
| Maturityanalysisofundiscountedleasereceipts | 31/12/2020 |
| 1styearsubsequenttothebalancesheetdate | 286,233,247.28 |
| 2ndyearsubsequenttothebalancesheetdate | 136,732,886.83 |
| 3rdyearsubsequenttothebalancesheetdate | 95,628,740.71 |
| 4thyearsubsequenttothebalancesheetdate | 79,209,529.00 |
| 5thyearsubsequenttothebalancesheetdate | 72,940,772.30 |
| Subsequentyears | 317,212,150.30 |
| Total | 987,957,326.42 |
Note1:TheoperatingleaseswheretheGroupasthelessorarerelatedtoportandterminalfacilities,machinery
equipment,vehicles,landandbuildings,withleasetermsrangingfrom1monthto50yearsandoptiontorenewtheleaseofportandterminalfacilities,machineryequipment,landandbuildings.TheGroupconsidersthatastheleasedassetsareproperlyused,theunguaranteedbalanceofsuchassetsdoesnotconstitutesmaterialriskoftheGroup.Note2:For2020,therevenuerelatingtooperatingleaseamountstoRMB366,100,557.24;thereisnorevenue
relatingtovariableleasepaymentthatisnotincludedinleasereceipts.
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(VI)CHANGESINSCOPEOFCONSOLIDATION
1.Businesscombinationnotinvolvingenterprisesundercommoncontrolfortheyear
| Nameofacquiree | Dateonwhichtheinvestmentisacquired | Acquisitioncost | Proportionofequityacquired(%) | Acquisitionmethod | Acquisitiondate | Basisfordeterminingtheacquisitiondate | Acquiree'sincomefromacquisitiondatetotheendoftheyear | Acquiree'snetprofitfromacquisitiondatetotheendoftheyear |
| NingboDaxie | 19November2020 | 1,723,788,876.57 | 45.00 | Concertedactionagreement | 19November2020 | Transferofdefactocontrol | 73,403,212.42 | 27,286,541.83 |
Note:On19November2020,CyberChicCompanyLimited,thesubsidiaryoftheCompanyandtheother
shareholdersofNingboDaxieChinaMerchantsInternationalTerminalsCo.Ltd.(NingboZhoushanandCITICPortInvestmetnCo.,Ltd)establishtheBudgetCommitteethroughresolutionsofshareholdermeeting,andenteredintoaCooperationAgreementwithNingboZhoushanPortCompanyLimited("NingboPort"),TheBudgetCommitteeconsistsofthreedirectors,onenominatedbyeachshareholdertobeamemberoftheBudgetCommitteeandthedirectornominatedbyCyberChicCompanyLimitedtobetheChairman.TheBudgetCommitteeismainlyresponsiblefortheexaminationandapprovalofNingboDaxie'sannualbusinessplan,annualfinancialbudgetandfinalaccounts,andafter-taxprofitdistributionplan.AnymatterconsideredbytheBudgetCommitteeshallbeapprovedbyatwo-thirdsmajority.Pursuanttothecooperationagreement,CyberChicCompanyLimitedandNingboZhoushanwillconsultandcommunicatetoreachacommonactionpriortotheexerciseofshareholderrights.IfbothpartiesfailtoreachaconsensusontheoperationandmanagementofNingboDaxie,itwillbedecidedaccordingtotheopinionofCyberChicCompanyLimited.NoconsiderationwillbepaidbyeitherpartyundertheCooperationAgreement.Afterthesigningofthecooperationagreement,CyberChicCompanyLimitedandNingboZhoushanjointlyownmorethan50%ofthesharesofNingboDaxie.Therefore,asofNovember19,2020,theGroupwillincludeNingboDaxieintotheconsolidatedscopeofconsolidatedfinancialstatements,NingboDaxiewillalsobetransformedfromajointventurecompanyoftheGroupintoasubsidiaryoftheGroup,withthesameshareholdingratio.
2.Combinationcostandgoodwill
| Combinationcost | NingboDaxie |
| Cash | - |
| Fairvalueofpreviouslyheldequityatacquisitiondate | 1,723,788,876.57 |
| Others | - |
| Totalcombinationcost | 1,723,788,876.57 |
| Less:Shareoffairvalueofnetidentifiableassets | 1,535,291,682.16 |
| Goodwill | 188,497,194.41 |
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(VI)CHANGESINSCOPEOFCONSOLIDATION-continued
3.Businesscombinationnotinvolvingenterprisesundercommoncontrol
(1)Identifiableassets,liabilitiesoftheacquireeatacquisitiondate
| NingboDaxie | ||
| Fairvalueatacquisitiondate | Carryingamountatacquisitiondate | |
| Assets: | ||
| Currentassets | 452,190,770.34 | 452,190,770.34 |
| Investmentsinotherequityinstruments | 17,689,094.74 | 17,744,912.00 |
| Fixedassets | 2,367,025,860.63 | 1,762,938,008.76 |
| Constructioninprogress | 22,262,821.75 | 22,262,821.75 |
| Intangibleassets | 1,246,136,859.13 | 174,638,339.40 |
| Long-termprepaidexpenses | 9,924,686.56 | 9,924,686.56 |
| Liabilities: | ||
| Currentliabilities | 283,489,650.27 | 283,489,650.27 |
| Specialpayables | 1,098,494.94 | 1,098,494.94 |
| Deferredtaxliabilities | 418,882,654.24 | - |
| Netassets | 3,411,759,293.70 | 2,155,111,393.60 |
| Less:Minorityinterests | - | - |
| Netassetsacquired | 3,411,759,293.70 | 2,155,111,393.60 |
(2)Operatingresultsandnetcashflowsoftheacquireefromthe
acquisitiondatetotheendoftheyearofbusinesscombination
| Item | Acquisitiondatetotheendoftheyearofbusinesscombination |
| NingboDaxie | |
| Operatingincome | 73,403,212.42 |
| Operatingcostandexpenses | 42,281,862.79 |
| Grossprofit | 32,101,813.91 |
| Netprofit | 27,286,541.83 |
| Netcashflowsfromoperatingactivities | 36,940,631.77 |
| Netcashflowsfrominvestingactivities | -3,002,033.17 |
| Netcashflowsfromfinancingactivities | -117,688,708.33 |
| Netincreaseincashandcashequivalents(decreaseismarkedwith"-") | -83,750,109.73 |
(3)Gainsorlossesfromremeasurementofequityheldpriortoacquisitiondateatfairvalue
| Nameoftheacquiree | Carryingamountofpreviouslyheldequityattheacquisitiondate | Fairvalueofpreviouslyheldequityattheacquisitiondate | Gainsorlossesfromremeasurementofpreviouslyheldequityatfairvalue | Methodofdeterminingthefairvalueofpreviouslyheldequityatacquisitiondateandkeyassumptions | Amounttransferredfromothercomprehensiveincometoinvestmentincomeinrespectoftheequityheldpriortotheacquisitiondate |
| NingboDaxie | 969,800,126.77 | 1,723,788,876.57 | 753,988,749.80 | Asset-basedvaluation | - |
-138-
(VII)EQUITYINOTHERENTITIES
1.Interestsinsubsidiaries
(1)CompositionoftheGroup
| Nameofthesubsidiary | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB'0000,unlessotherwisespecified) | ProportionofownershipInterest(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| ShenzhenChiwanInternationalFreightAgencyCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 550 | 100.00 | - | Establishedthroughinvestment |
| ChiwanWharfHoldings(HongKong)Ltd. | HongKong,PRC | HongKong,PRC | Investmentholding | HKD1,000,000 | 100.00 | - | Establishedthroughinvestment |
| DongguanShenchiwanPortAffairsCo.,Ltd. | Dongguan,PRC | Dongguan,PRC | Logisticssupportservices | 45,000.00 | 85.00 | - | Establishedthroughinvestment |
| DongguanShenchiwanWharfCo.,Ltd. | Dongguan,PRC | Dongguan,PRC | Logisticssupportservices | 40,000.00 | 100.00 | - | Establishedthroughinvestment |
| ShenzhenChiwanHarborContainerCo.Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 28,820.00 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenChiwanPortDevelopmentCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 1,500.00 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChiwanContainerTerminalCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | USD95,300,000 | 55.00 | 20.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenChiwanTugboatCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 2,400.00 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChiwanShipping(HongKong)Limited | HongKong,PRC | HongKong,PRC | Logisticssupportservices | HKD80,0000 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| CMPort(Note1) | HongKong,PRC | HongKong,PRC | Investmentholding | HKD42,521,339,900 | 41.85 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 70,000.00 | 40.00 | 60.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsHoldings(International)InformationTechnologyCompanyLimited(hereinafterreferredtoas"InternationalInformationTechnologyCompany") | Shenzhen,PRC | Shenzhen,PRC | ITservices | 5,000.00 | 23.16 | 76.84 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsInternational(China)InvestmentCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Investmentholding | USD30,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsInternationalContainerTerminal(Qingdao)Co.,Ltd. | Qingdao,PRC | Qingdao,PRC | Logisticssupportservices | USD206,300,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsContainerServicesLimited | HongKong,PRC | HongKong,PRC | Logisticssupportservices | HKD500,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsPort(Shenzhen)Co.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 55,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenHaiqinProjectManagementCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Projectsupervisionservices | 300 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ATJ | Shenzhen,PRC | Shenzhen,PRC | Preparationforthewarehousingproject | HKD100,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ASJ | Shenzhen,PRC | Shenzhen,PRC | Preparationforthewarehousingproject | HKD1,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsInternationalTerminal(Qingdao)Co.,Ltd. | Qingdao,PRC | Qingdao,PRC | Logisticssupportservices | USD44,000,000 | - | 90.10 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ColomboInternationalContainerTerminalsLimited | SriLanka | SriLanka | Logisticssupportservices | USD150,000,100 | - | 85.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| MagangGodown&Wharf(Note2) | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 33,500.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenMawanPortServicesCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 20,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ZhangzhouChinaMerchantsTugboatCo.,Ltd. | Zhangzhou,PRC | Zhangzhou,PRC | Logisticssupportservices | 1,500.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ZhangzhouChinaMerchantsPortCo.,Ltd. | Zhangzhou,PRC | Zhangzhou,PRC | Logisticssupportservices | 100,000.00 | - | 60.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ZCMG(note2) | Zhangzhou,PRC | Zhangzhou,PRC | Logisticssupportservices | 44,450.00 | - | 31.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShekouContainerTerminalsLtd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | HKD618,201,200 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
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(VII)EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(1)CompositionoftheGroup-continued
| Nameofthesubsidiary | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB'0000,unlessotherwisespecified) | ProportionofownershipInterest(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| ShenzhenLianyunjieContainerTerminalsCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 60,854.90 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| AnxunjieContainerTerminals(Shenzhen)Co.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 127,600.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| AnyunjiePortWarehousingService(Shenzhen)Co.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Preparationforthewarehousingproject | 6,060.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenHaixingHarborDevelopmentCo.,Ltd | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 53,072.92 | - | 67.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenLianyongtongTerminalCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | USD7,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| YidePort | Foshan,PRC | Foshan,PRC | Logisticssupportservices | 21,600.00 | - | 51.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| MegaShekouContainerTerminalsLimited | BritishVirgin | BritishVirgin | Investmentholding | USD120.00 | - | 80.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ThesarMaritimeLimited | Cyprus | Cyprus | Investmentholding | EUR5,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| LomeContainerTerminalS.A. | TheRepublicofTogo | TheRepublicofTogo | Logisticssupportservices | XOF200,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| Gainpro | BritishVirgin | BritishVirgin | Investmentholding | USD1.00 | - | 76.47 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| HambantotaInternationalPortGroup(Private)Limited | SriLanka | SriLanka | Logisticssupportservices | USD794,000,000 | - | 85.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| Shantouport | Shantou,PRC | Shantou,PRC | Logisticssupportservices | 12,500 | - | 60.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| JYRT | Shenzhen,PRC | Shenzhen,PRC | Propertyleaseservice,etc. | 80,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| QHW | Shenzhen,PRC | Shenzhen,PRC | Propertyleaseservice,etc. | 20,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| JuzhongzhiInvestment(Shenzhen)Co.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Investmentconsultation | 4,000 | - | 75.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenLiandaTugboatCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 200 | - | 60.29 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaOceanShippingTallyZhangzhouCo.,Ltd. | Zhangzhou,PRC | Zhangzhou,PRC | Logisticssupportservices | 200 | - | 84.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsHoldings(Djibouti)FZE | Djibouti | Djibouti | Logisticssupportservices | USD38,140,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| XindaResourcesLimited(hereinafterreferredtoas"Xinda") | BritishVirgin | BritishVirgin | Investmentholding | USD107,620,000 | - | 77.45 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| KongRiseDevelopmentLimited | HongKong,PRC | HongKong,PRC | Investmentholding | USD107,620,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| TCP | Brazil | Brazil | Logisticssupportservices | BRL68,851,600 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| DirecetAchieveInvestmentsLimited | HongKong,PRC | HongKong,PRC | Investmentholding | USD814,781,300 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| CMPort(Zhoushan)RoRoLogisticsCo.,Ltd. | Zhoushan,PRC | Zhoushan,PRC | Logisticssupportservices | 17,307.86 | 51.00 | - | Assetsacquisition |
| ShenzhenHaixingLogisticsDevelopmentCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 7,066.79 | - | 67.00 | Assetsacquisition |
| ZhanjiangPort | Zhanjiang,PRC | Zhanjiang,PRC | Logisticssupportservices | 587,420.91 | 3.42 | 54.93 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortInternationalContainerTerminalCo.,Ltd. | Zhanjiang,PRC | Zhanjiang,PRC | Logisticssupportservices | 60,000.00 | - | 80.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
-140-
(VII)EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(1)CompositionoftheGroup-continued
| Nameofthesubsidiary | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB'0000,unlessotherwisespecified) | ProportionofownershipInterest(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| ZhanjiangPortPetrochemicalTerminalCo.,Ltd. | Zhanjiang,PRC | Zhanjiang,PRC | Logisticssupportservices | 18,000.00 | - | 50.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ChinaOceanShippingTallyCo.,Ltd.,Zhanjiang | Zhanjiang,PRC | Zhanjiang,PRC | Logisticssupportservices | 300 | - | 84.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortDonghaidaoBulkCargoTerminalCo.,Ltd. | Zhanjiang,PRC | Zhanjiang,PRC | Logisticssupportservices | 5,000.00 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortBondedServiceCo.,Ltd.,Guangdong | Zhanjiang,PRC | Zhanjiang,PRC | Logisticssupportservices | 300 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| GuangdongZhanjiangPortLogisticsCo.,Ltd. | Zhanjiang,PRC | Zhanjiang,PRC | Logisticssupportservices | 10,000.00 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortHaichuanTradingCo.,Ltd. | Zhanjiang,PRC | Zhanjiang,PRC | Logisticssupportservices | 200 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| GuangdongZhanjiangPortLongtengShippingCo.,Ltd. | Zhanjiang,PRC | Zhanjiang,PRC | Logisticssupportservices | 9,000.00 | - | 70.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| NingboDaxie(Note4) | Ningbo,PRC | Ningbo,PRC | Logisticssupportservices | 120,909.00 | - | 45.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShantouHarborTowageServiceCo.,Ltd. | Shantou,PRC | Shantou,PRC | Logisticssupportservices | 1,000.00 | - | 100.00 | Establishedthroughinvestment |
Note1:On19June2018,theCompanyandChinaMerchantsGroup(HongKong)Co.,Ltd.("CMHK")entered
into"AgreementofConcertedActiononChinaMerchantsPortHoldingsCompanyLimited".Accordingtotheagreement,CMHKunconditionallykeepsconsistentwiththeCompanywhenvotingforthemattersdiscussedatthegeneralshareholdersmeetingofCMPortinrespectofitsvotingpowerofCMPortasentrusted,andperformsthevotingaspertheCompany'sopinion.ForJulyandOctober2020,CMPortrespectivelydistributed2019dividendsand2020interimdividendstoshareholders.Theshareholdersmayselecttoreceivethedividendsallincashorshares,orreceivethedividendspartincashandpartinnewshares.TheCompanyandCMHKselecttoreceiveallitsshareofdividendsfromtheshareholdinginCMPortintheformofscripdividends.UponthecompletionofabovedistributionofCMPort,theCompany'sshareinCMPortincreasedfrom1,411,014,033sharesto1,532,248,957shares,accountingfor41.85%(previously40.91%)ofthetotalissuedsharesofCMPort.TheproportionofsharesheldbyCMHKchangedfrom21.86%to22.36%.Therefore,theCompanyhastotal64.21%votingpowerofCMPortandhascontroloverCMPort.
-141-
(VII)EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(1)CompositionoftheGroup-continued
Note2:Attheshareholders'meetingheldon17July2020,MagangGodown&WharfasubsidiaryoftheCompany,
approvedanabsorptionagreementwithShenzhenMawanPortServicesCo.,Ltd.,("MawanPortServices"),anothersubsidiaryoftheCompany.Accordingtotheagreement,MahaangWarehouseCodecontinuesasagoingconcernbyabsorbingMawanPortServiceswhichwascancelledwiththesettlementdate30November2020.On22July2020,MagangGodown&WharfandMawanPortServices,subsidiariesoftheCompany,publishedseparateannouncementsinShenzhenSpecialZoneDailytoexplainthedebtsettlementordebtguaranteeofMagangGodown&WharfandMawanPortServices,andthedebtsofbothpartiesbeforethemergerwillcontinuetoberepaidbytheexistingMagangGodown&Wharfafterthemerger.On13November2020,theregistrationmodificationwiththeadministrationforindustryandcommerceofMagangGodown&WharfandtheregistrationcancellationwiththeadministrationforindustryandcommerceofMawanPortServices,subsidiariesoftheCompany,werecompleted.Note3:TheGroupandChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.enteredinto"EquityCustody
Agreement",accordingtowhichChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.entrustedits29%equityofZCMGtotheGroupforoperationandmanagement.Therefore,theGrouphas60%votingpowerofZCMGandincludesitinthescopeofconsolidationoftheconsolidatedfinancialstatements.Note4:DetailsaresetoutinNote(VI)1.
(2)Materialnon-wholly-ownedsubsidiaries
| Nameofthesubsidiary | Proportionofownershipinterestheldbytheminorityshareholders(%) | Profitorlossattributabletominorityshareholdersinthecurrentyear | Dividendsdistributedtominorityshareholdersinthecurrentyear | Balanceofminorityinterestsattheendoftheyear |
| CMPort | 58.15 | 3,290,341,491.53 | 1,271,963,608.20 | 63,082,766,307.07 |
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(VII)EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(3)Significantfinancialinformationofmaterialnon-wholly-ownedsubsidiaries
| Nameofthesubsidiary | Closingbalance | Openingbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| CMPort | 14,625,774,694.50 | 125,425,081,030.94 | 140,050,855,725.44 | 13,055,907,214.63 | 34,087,468,137.34 | 47,143,375,351.97 | 11,159,452,476.24 | 119,576,502,129.38 | 130,735,954,605.62 | 13,858,924,526.23 | 35,059,524,441.90 | 48,918,448,968.13 |
| Nameofthesubsidiary | 2020 | 2019 | ||||||
| Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| CMPort | 7,956,928,250.59 | 5,064,412,321.79 | 3,204,689,765.86 | 3,629,199,456.13 | 7,845,242,646.62 | 7,421,484,985.59 | 6,327,276,475.35 | 3,944,044,766.09 |
-143-
(VII)EQUITYINOTHERENTITIES-continued
2.Transactionsresultinginchangesinownershipinterestsinsubsidiaries
withoutlosingcontroloverthesubsidiaries
(1)Descriptionofchangesinownershipinterestsinsubsidiaries
Duringtheyear,theGroup'sownershipinterestsinCMPortchangedfrom40.91%to41.85%.DetailsaresetoutinNote(VII)1(1).InFebruary2018,ChinaMerchantsPortHoldings,asubsidiaryoftheCompany,throughitscontrollingsubsidiaryKongRiseDevelopmentLimited,acquireda90%equityinterestinTCP.Undertheagreement,theminorityshareholderofTCPholdsanoptiontosellits10%equityinterestinTCPtoKongRiseDevelopmentLimited,asubsidiaryoftheGroupandthecontrollingshareholderofTCP,atthehigherofthemarketpriceorBRL320million(the"PutOption").On23February2020,theminorityshareholdersofTCPgavenoticeofexercisetoKongRiseDevelopmentLimited,afterwhichChinaMerchantsPortHoldingsincreaseditscapitaltoXinda,thewholly-ownedcontrollingshareholderofKongRiseDevelopmentLimited,byUSD107million,XindaincreaseditscapitaltoKongRiseDevelopmentLimitedbyUSD107million,andKongRiseDevelopmentLimitedpaidtheminorityshareholderofTCPthefullamountofUSD107millionfortheequityacquisitionofapproximatelyRMB755,398,999.97.Asof31December2020,therelevantequitytransactionhasbeencompleted.Uponcompletionofthistransaction,theshareholdingofKongRiseDevelopmentLimitedinTCPchangedfrom90%to100%andtheshareholdingofChinaMerchantsPortHoldingsinXindachangedfrom74.9485%to77.4536%.InJune2020,ChinaMerchantsPortHoldings,asubsidiaryoftheCompany,asseller,FujianTransportationMaritimeSilkRoad,asbuyer,andFujianProvincialTransportationGroupCo.,Ltd.,asguarantor,enteredintothe"ContractforShareTransferofGAINPRORESOURCESLIMITED",underwhichChinaMerchantsPortHoldingstransferredabout23.53%ofequityinitswholly-ownedsubsidiaryGainproand23.53%oftheshareholderloansitprovidedtoGainprotoFujianTransportationMaritimeSilkRoadwithatransactionconsiderationofUSD268,000,000.00.Asof31December2020,therelevantequitytransactionhasbeencompleted.Afterthecompletionofthistransaction,theshareholdingofChinaMerchantsPortHoldingsinGainprochangedfrom100%to76.47%.
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(VII)EQUITYINOTHERENTITIES-continued
2.Transactionsresultinginchangesinownershipinterestsinsubsidiaries
withoutlosingcontroloverthesubsidiaries-continued
(2)Effectofthetransactiononminorityinterestsandequityattributable
toownersoftheCompany
| CMPort | TCP | Gainpro | |
| Acquisitioncost/disposalconsideration | |||
| -Cash | - | 755,398,999.97 | 1,851,325,647.36 |
| -Fairvalueofnon-cashassets | 974,063,967.07 | - | - |
| Less:FairvalueofputoptionsrecognizedattheacquisitionofTCPcontrollinginterest | - | 170,321,779.31 | - |
| Less:Changesinthefairvalueofputoptions | - | 65,259,562.57 | - |
| Less:ShareholderloanstransferredtoFujianTransportationMaritimeSilkRoad | - | - | 1,587,526,138.69 |
| Totalacquisitioncostanddisposalconsideration | 974,063,967.07 | 519,817,658.09 | 263,799,508.67 |
| Less:Shareofnetassetsofsubsidiariescalculatedbasedontheproportionofequityacquiredtotheequitydisposed | 1,350,167,611.78 | -14,691,819.14 | -68,314,604.13 |
| Difference | -376,103,644.71 | 534,509,477.23 | 332,114,112.80 |
| Including:AdjustmenttocapitalReserve | 376,103,644.71 | -534,509,477.23 | 332,114,112.80 |
| Adjustmenttosurplusreserve | - | - | - |
| Adjustmenttounappropriatedprofit | - | - | - |
3.Interestsinjointventuresandassociates
(1)Materialjointventuresorassociates
| Investee | Principalplaceofbusiness | Placeofregistration | Natureofbusiness | ProportionofownershipinterestsheldbytheGroup(%) | Accountingmethodofinvestmentsinassociates | |
| Direct | Indirect | |||||
| Associates | ||||||
| ShanghaiInternationalPort(Group)Co.,Ltd. | Shanghai,PRC | Shanghai,PRC | Portandcontainerterminalbusiness | - | 26.77 | Equitymethod |
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(VII)EQUITYINOTHERENTITIES-continued
4.Keyfinancialinformationofmaterialassociates
| Item | ShanghaiInternationalPort(Group)Co.,Ltd. | |
| Closingbalance/Amountincurredinthecurrentperiod | Openingbalance/Amountincurredinthepriorperiod | |
| Currentassets | 43,653,716,114.59 | 40,399,631,516.67 |
| Including:Cashandcashequivalents | 20,689,734,592.59 | 17,900,365,675.69 |
| Non-currentassets | 112,271,033,861.93 | 101,777,664,401.29 |
| Totalassets | 155,924,749,976.52 | 142,177,295,917.96 |
| Currentliabilities | 22,405,787,626.17 | 19,339,272,490.14 |
| Non-currentliabilities | 37,539,362,699.55 | 32,049,165,771.78 |
| Totalliabilities | 59,945,150,325.72 | 51,388,438,261.92 |
| Minorityinterests | 8,461,734,212.94 | 8,732,108,869.09 |
| Equityattributabletoshareholdersoftheparentcompany | 87,517,865,437.86 | 82,056,748,786.95 |
| Shareofnetassetscalculatedbasedontheproportionofownershipinterests | 23,428,532,577.72 | 21,966,591,650.27 |
| Adjustments | ||
| -Goodwill | 2,076,585,747.12 | 2,076,585,747.12 |
| -Others | -143,335,143.43 | -125,134,529.84 |
| Carryingamountsofequityinvestmentsinassociates | 25,361,783,181.41 | 23,918,042,867.55 |
| Fairvalueofpubliclyquotedequityinvestmentsinassociates | 28,345,709,190.02 | 35,788,783,813.22 |
| Operatingincome | 26,119,460,820.07 | 36,101,631,985.21 |
| Netprofit | 9,183,403,328.66 | 9,925,845,382.34 |
| Othercomprehensiveincome | 657,555,565.18 | -197,209,230.86 |
| Totalcomprehensiveincome | 9,840,958,893.84 | 9,728,636,151.48 |
| Dividendsreceivedfromassociatesinthecurrentyear | 899,371,516.97 | 955,194,576.56 |
5.Summarizedfinancialinformationofimmaterialassociatesandjointventures
| Item | Closingbalance/Amountaccumulatedintheyear | Openingbalance/Amountaccumulatedlastyear |
| Jointventures: | ||
| Totalcarryingamountofinvestments | 8,860,743,706.09 | 9,392,226,566.22 |
| Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest | ||
| -Netprofit | 357,995,555.70 | 468,699,021.57 |
| -Othercomprehensiveincome | 25,430,763.35 | -18,718,479.76 |
| -Totalcomprehensiveincome | 383,426,319.05 | 449,980,541.81 |
| Associates: | ||
| Totalcarryingamountofinvestments | 32,009,396,535.95 | 24,606,269,949.49 |
| Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest | ||
| -Netprofit | 1,396,328,157.40 | 833,229,755.94 |
| -Othercomprehensiveincome | 21,687,463.52 | -71,060,470.70 |
| -Totalcomprehensiveincome | 1,418,015,620.92 | 762,169,285.24 |
6.TheinvesteeswheretheGroupholdslong-termequityinvestmentsarenot
restrictedtotransferfundstotheGroup.
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(VIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS
1.Currencyrisk
Currencyriskistheriskthatlosseswilloccurbecauseofchangesinforeignexchangerates.TheGroup'sexposuretothecurrencyriskisprimarilyassociatedwithHKD,USDandEUR.Exceptforpartofthepurchasesandsales,theGroup'sotherprincipalactivitiesaredenominatedandsettledinRMB.Asat31December2020,thebalanceoftheGroup'sassetsandliabilitiesarebothdenominatedinfunctionalcurrency,exceptthattheassetsandliabilitiessetoutbelowarerecordedusingforeigncurrency.CurrencyriskarisingfromtheforeigncurrencybalanceofassetsandliabilitiesmayhaveimpactontheGroup'sperformance.
| Item | Closingbalance | Openingbalance |
| Cashandbankbalances | 1,214,901,554.08 | 829,827,620.81 |
| Accountsreceivable | 34,261,643.29 | 134,801,300.52 |
| Otherreceivables | 1,004,843,484.23 | 558,948,223.20 |
| Long-termreceivables | - | 9,800,295.76 |
| Short-termborrowings | 668,320,000.00 | 1,304,398,148.00 |
| Accountspayable | 4,286,809.14 | 30,431,392.31 |
| Otherpayables | 201,395,071.52 | 261,684,252.87 |
| Non-currentliabilitiesduewithinoneyear | 382,131,909.25 | 261,401,461.04 |
| Long-termborrowings | 670,000,000.00 | 976,546,725.00 |
| Bondspayable | 2,500,000,000.00 | 2,500,000,000.00 |
| Long-termpayables | 440,659,667.97 | 431,361,402.17 |
TheGroupcloselymonitorstheeffectsofchangesintheforeignexchangeratesontheGroup'scurrencyriskexposures.Accordingtothecurrentriskexposureandjudgmentoftheexchangeratemovements,managementconsidersitisunlikelythattheexchangeratechangesinthefutureoneyearwillresultinsignificantlosstotheGroup.SensitivityanalysisoncurrencyriskTheassumptionforthesensitivityanalysisoncurrencyriskisthatallthecashflowhedgesandhedgesofanetinvestmentinaforeignoperationarehighlyeffective.Onthebasisoftheaboveassumption,whereallothervariablesareheldconstant,thereasonablypossiblechangesintheforeignexchangeratemayhavethefollowingpre-taxeffectontheprofitorlossfortheperiodandshareholders'equity:
| Item | Changesinexchangerate | Closingbalance | Openingbalance | ||
| Effectonprofits | Effectonshareholders'equity | Effectonprofits | Effectonshareholders'equity | ||
| Allforeigncurrencies | 5%increaseagainstRMB | -577,260.66 | -577,260.66 | -17,661,467.60 | -17,661,467.60 |
| Allforeigncurrencies | 5%decreaseagainstRMB | 577,260.66 | 577,260.66 | 17,661,467.60 | 17,661,467.60 |
| Allforeigncurrencies | 5%increaseagainstUSD | 1,578,468.63 | 1,578,468.63 | -7,574,539.96 | -7,574,539.96 |
| Allforeigncurrencies | 5%decreaseagainstUSD | -1,578,468.63 | -1,578,468.63 | 7,574,539.96 | 7,574,539.96 |
| Allforeigncurrencies | 5%increaseagainstHKD | -131,469,479.65 | -131,469,186.05 | -97,677,880.50 | -97,677,880.50 |
| Allforeigncurrencies | 5%decreaseagainstHKD | 131,469,479.65 | 131,469,186.05 | 97,677,880.50 | 97,677,880.50 |
| Allforeigncurrencies | 5%increaseagainstFCFA | -171,067.13 | -171,067.13 | -41,707,232.31 | -41,707,232.31 |
| Allforeigncurrencies | 5%decreaseagainstFCFA | 171,067.13 | 171,067.13 | 41,707,232.31 | 41,707,232.31 |
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(VIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued
2.Interestraterisk-changesincashflows
Riskofchangesincashflowsoffinancialinstrumentsarisingfrominterestratechangesismainlyrelatedtobankloanswithfloatinginterestrate.(SeeNote(V)26andNote(V)36).TheGroupcontinuouslyandcloselymonitorstheimpactofinterestratechangesontheGroup'sinterestraterisk.TheGroup'spolicyistomaintaintheseborrowingsatfloatingrates.Presently,theGrouphasnoarrangementsuchasinterestrateswapsetc.SensitivityanalysisofinterestrateriskSensitivityanalysisofinterestrateriskisbasedonthefollowingassumptions:
?Fluctuationsofmarketinterestratecanaffecttheinterestincomeorexpenseofafinancial
instrumentwithfloatinginterestrate;
?Forafinancialinstrumentatfairvaluewithfixedinterestrate,thefluctuationsofmarketinterest
ratecanonlyaffectitsinterestincomeorexpense;
?Foraderivativefinancialinstrumentdesignatedashedginginstrument,thefluctuationsofmarket
interestrateaffectitsfairvalue,andallinterestratehedgingareexpectedtobehighlyeffective;
?Thechangesinfairvalueofderivativefinancialinstrumentsandotherfinancialassetsand
liabilitiesarecalculatedusingcashflowdiscountingmethodbyapplyingthemarketinterestrateatbalancesheetdate.
Onthebasisofaboveassumptions,wheretheothervariablesheldconstant,thepre-taxeffectofpossibleandreasonablechangesininterestrateontheprofitorlossfortheperiodandshareholders'equityareasfollows:
| Item | Changesininterestrate | Closingbalance | Openingbalance | ||
| Effectonprofits | Effectonshareholders'equity | Effectonprofits | Effectonshareholders'equity | ||
| Short-termborrowingsandlong-termborrowings | 1%increase | -133,940,312.35 | -133,940,312.35 | -126,905,885.92 | -126,905,885.92 |
| Short-termborrowingsandlong-termborrowings | 1%decrease | 133,940,312.35 | 133,940,312.35 | 126,905,885.92 | 126,905,885.92 |
3.Liquidityrisk
Inthemanagementoftheliquidityrisk,theGroupmonitorsandmaintainsalevelofcashandcashequivalentsdeemedadequatebythemanagementtofinancetheGroup'soperationsandmitigatetheeffectsoffluctuationsincashflows.Themanagementmonitorstheutilisationofbankborrowingsandensurescompliancewithloancovenants.Asof31December2020,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsofRMB3,870,940,636.24.Asat31December2020,theGrouphasavailableunutilizedloanfacilityofRMB45,605,365,637.62whichismorethancurrentliabilities.Therefore,theGroup'smanagementbelievesthattheGrouphasnosignificantliquidityrisk.
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(VIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued
3.Liquidityrisk-continued
ThefollowingisthematurityanalysisforfinancialassetsandfinancialliabilitiesheldbytheGroupwhichisbasedonundiscountedremainingcontractualobligations:
| Item | Carryingamount | Grossamount | Within1year | 1to5years | Over5years |
| Short-termborrowings | 10,483,775,548.93 | 10,589,325,476.51 | 10,589,325,476.51 | - | - |
| Notespayable | 7,081,772.32 | 7,081,772.32 | 7,081,772.32 | - | - |
| Accountspayable | 599,112,028.98 | 599,112,028.98 | 599,112,028.98 | - | - |
| Otherpayables | 2,456,700,897.60 | 2,456,700,897.60 | 2,456,700,897.60 | - | - |
| Non-currentliabilitiesduewithinoneyear | 3,511,343,186.37 | 4,990,744,868.69 | 4,990,744,868.69 | - | - |
| Othercurrentliabilities | 2,383,668,985.94 | 2,397,840,643.47 | 2,397,840,643.47 | - | - |
| Long-termborrowings | 7,406,322,693.80 | 8,295,674,700.92 | - | 6,597,478,594.75 | 1,698,196,106.17 |
| Bondspayable | 21,090,545,845.56 | 23,576,837,902.76 | - | 19,195,987,479.27 | 4,380,850,423.49 |
| Leaseliabilities | 1,327,423,748.05 | 2,054,269,999.66 | - | 804,396,870.36 | 1,249,873,129.30 |
| Long-termpayables | 1,188,465,420.57 | 1,289,219,203.17 | - | 26,864,969.61 | 1,262,354,233.56 |
| Othernon-currentliabilities | 2,821,122,944.90 | 2,821,122,944.90 | - | 246,057,524.18 | 2,575,065,420.72 |
(IX)DISCLOSUREOFFAIRVALUE
1.Closingbalanceofassetsandliabilitiesmeasuredatfairvalue
| Item | Fairvalueattheendoftheyear | |||
| Level1 | Level2 | Level3 | Total | |
| Measuredatfairvalue | Measuredatfairvalue | Measuredatfairvalue | ||
| Measurementsatfairvaluecontinuously | ||||
| Held-for-tradingfinancialassets | 165,448.59 | - | 850,000,000.00 | 850,165,448.59 |
| Receivablesfinancing | - | 217,449,966.41 | - | 217,449,966.41 |
| Otherequityinstrumentinvestments | 10,786,800.00 | - | 170,680,257.74 | 181,467,057.74 |
| Othernon-currentfinancialassets | 886,385,139.77 | - | 24,422,312.79 | 910,807,452.56 |
| Totalassetsmeasuredatfairvaluecontinuously | 897,337,388.36 | 217,449,966.41 | 1,045,102,570.53 | 2,159,889,925.30 |
| Othernon-currentliabilities | - | - | 2,888,395,641.53 | 2,888,395,641.53 |
| Totalliabilitiesmeasuredatfairvaluecontinuously | - | - | 2,888,395,641.53 | 2,888,395,641.53 |
2.Basisfordeterminingthemarketpriceofitemscontinuouslymeasuredat
level1fairvalue
Themarketpricesofotherequityinstrumentinvestmentsandothernon-currentfinancialassetsaredeterminedattheclosingpriceoftheequityinstrumentatShanghaiStockExchangeandHongKongStockExchangeat31December2020.
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(IX)DISCLOSUREOFFAIRVALUE-continued
3.Qualitativeandquantitativeinformationofvaluationtechniquesandkey
parametersadoptedforitemscontinuouslymeasuredatlevel2fairvalue
| Item | Fairvalueattheendofthisyear | Valuationtechniques | Inputs |
| Receivablesfinancing | 217,449,966.41 | Cashflowdiscounting | Discountrate |
Thefairvalueofnon-listedequityinstrumentsincludedinequityinstrumentsatfairvaluethroughprofitorlossisdeterminedusingthevaluationtechniquessuchaslistedcompanycomparisonapproachetc.Duringthevaluation,theGroupneedstomakeestimatesinrespectofmarketvolatilityandrelevanceetc.,selectappropriatediscountrateandtakeintoconsiderationofadjustmentofdiscountandpremium.
4.Qualitativeandquantitativeinformationofvaluationtechniquesandkey
parametersadoptedforitemscontinuouslymeasuredatlevel3fairvalue
| Item | Fairvalueattheendofthisyear | Valuationtechniques | Inputs |
| Held-for-tradingfinancialassets | 850,000,000.00 | Cashflowdiscounting | Discountrate |
| Otherequityinstrumentinvestments | 170,680,257.74 | Networthmethod | Carryingamount |
| Othernon-currentfinancialassets | 2,000,000.00 | Cashflowdiscounting | Discountrate |
| Othernon-currentfinancialassets | 667,822.80 | Networthmethod | Carryingamount |
| Othernon-currentfinancialassets | 21,754,489.99 | Listedcompanycomparisonapproach | Shareprice |
| Othernon-currentliabilities | 2,888,395,641.53 | Cashflowdiscounting | Discountrate |
Thefairvalueofnon-listedequityinstrumentsincludedinequityinstrumentsatfairvaluethroughprofitorlossorothercomprehensiveincomeisdeterminedusingthevaluationtechniquessuchascashflowdiscountingmethod,networthmethod,listedcompanycomparisonapproachetc.Duringthevaluation,theGroupneedstomakeestimatesinrespectofthefuturecashflows,creditrisk,marketvolatilityandrelevanceetc.,selectappropriatediscountrateandtakeintoconsiderationofadjustmentofdiscountandpremium.
5.Fairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalue
Thefinancialassetsandliabilitiesnotmeasuredatfairvaluemainlyinclude:notesreceivable,accountsreceivable,otherreceivables,short-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayable,leaseliabilitiesandlong-termpayablesetc.TheGroup'smanagementbelievesthatthecarryingamountsoffinancialassetsandfinancialliabilitiesatamortizedcostinthefinancialstatementsapproximatetheirfairvalues.Thefairvalueofbondspayabletradedinactivemarketisdeterminedatthequotedpriceintheactivemarket.Thefairvaluesoflong-termborrowings,long-termpayablesandbondspayablenottradedinactivemarketaredeterminedatthepresentvalueofcontractualfuturecashflowsdiscountedusingtheinterestrateforprovidingnearlythesamecashflowstoentitywithcomparablecreditratingunderthesameconditions.
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(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS
1.ParentoftheCompany
| Nameoftheparent | Relatedpartyrelationship | Typeoftheentity | Placeofregistration | Natureofbusiness | Issuedsharecapital | ProportionoftheCompany'sownershipinterestsheldbytheparent(%) | ProportionoftheCompany'svotingpowerheldbytheparent(%) |
| BroadfordGlobalLimited | Parentcompany | Privatelimitedcompany(sharelimited) | HongKong | Investmentholding | HKD21,120,986,262 | 2.88 | 81.92(Note) |
Note:BroadfordGlobalLimiteddirectlyholds2.88%equityoftheCompany,andindirectlyholds19.29%and59.75%equityoftheCompanythroughthesubsidiariesChina
MerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.andChinaMerchantsPortInvestmentDevelopmentCompanyLimited(formerlyknownasChinaMerchantsInvestmentDevelopmentCo.,Ltd.)respectively.TheultimatecontrollingshareholderoftheCompanyisChinaMerchantsGroup.
2.SubsidiariesoftheCompanyDetailsofthesubsidiariesoftheCompanyaresetoutinNote(VII)1.
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(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
3.AssociatesandjointventuresoftheCompanyDetailsoftheCompany'ssignificantjointventuresandassociatesaresetoutinNote(VII)3.OtherjointventuresorjointventuresthatoccurredrelatedpartytransactionsandformedbalanceswiththeGroupthisyearareasfollows:
| Nameofjointventureorassociate | RelationshipwiththeCompany |
| PortofNewcastleanditssubsidiaries | Jointventure |
| GuizhouEastLandPortOperationCo.,Ltd. | Jointventure |
| GuangdongZhanjiangPortLongtengShippingCo.,Ltd. | Previouslyajointventure(currentlyasubsidiary) |
| NingboDaxie(Note1) | Previouslyajointventure(currentlyasubsidiary) |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Jointventure |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Jointventure |
| QingdaoQianwanNewUnitedContainerTerminalCo.,Ltd. | Jointventure |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | Jointventure |
| ChinaMerchantsAntongLogisticsManagementCompany | Jointventure |
| ChinaOceanShippingAgency(Zhanjiang)Co.,Ltd | Jointventure |
| YantaiPortGroupLaizhouPortCo.,Ltd. | Jointventure |
| QingdaoWutongCenturySupplyChainCo.,Ltd. | Jointventure |
| KumportLimanHizmetleriveLojistikSanayiveTicaretAnonim?irketi | Jointventure |
| DoralehMulti-purposePort | Associate |
| GreatHornDevelopmentCompanyFZCo | Associate |
| InternationalDjiboutiIndustrialParksOperationFZCo | Associate |
| PortdeDjiboutiS.A. | Associate |
| TerminalLinkSAS | Associate |
| Tin-CanIslandContainerTerminalLtd | Associate |
| GuizhouQiandongnanContinentalLandPortOperationCo.,Ltd. | Associate |
| NanshanGroupanditssubsidiaries | Associate |
| ShanghaiInternationalPort(Group)Co.,Ltd. | Associate |
| ShenzhenBaohongE-CommerceIntegratedServicesCo.,Ltd. | Associate |
| TianjinHaitianBondedLogisticsCo.,Ltd. | Associate |
| ModernTerminalsLimited | Associate |
| ZhanjiangCMHKInvestmentCo.,Ltd. | Associate |
| ZhanjiangXiagangUnitedDevelopmentCo.,Ltd. | Associate |
| ZhangzhouCOSCOShippingAgencyCo.,Ltd. | Associate |
| ChuKongRiverTradeTerminalCo.Ltd. | Associate |
| DalianPortLogisticsTechnologyCo.Ltd. | Associate |
| ChinaUnitedTallyCo.,Ltd.Shantou | Associate |
| ShantouInternationalContainerTerminalsLimited | Associate |
| ShenzhenBayElectricityIndustryCo.,Ltd. | Associate |
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(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
4.OtherrelatedpartiesoftheCompany
| Nameofotherrelatedparties | RelationshipwiththeCompany |
| YihaiKerryGoldenArowanaCereals,OilsandFoodstuffsCo.,Ltd. | Minorityshareholderofsubsidiary |
| ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd. | Minorityshareholderofsubsidiary |
| ZhoushanBlueOceanInvestmentCo.,Ltd. | Minorityshareholderofsubsidiary |
| SriLankaPortsAuthority | Minorityshareholderofsubsidiary |
| AntongHoldingsCo.,Ltd.anditssubordinatecompanies(Note2) | Samerelatednaturalperson |
| ChinaCOSCOShippingGroupanditssubsidiaries(Note2) | Samerelatednaturalperson |
| CMHK | Controlledbythesameultimatecontrollingshareholder |
| Sinotrans(NZ)Limited | Controlledbythesameultimatecontrollingshareholder |
| SinotransGuangdongCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| HoiTung(Shanghai)CompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| SouthChinaSinotransSupplyChainManagementCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | Controlledbythesameultimatecontrollingshareholder |
| QingdaoBondedLogisticsParkSinotransWarehousingLogisticsCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| QingdaoSinotransSupplyChainManagementCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| PenavicoShenzhenWarehousingCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenNanyou(Holdings)Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinotransShenzhenQianhaiSupplyChainManagementLtd. | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenWestPortSecurityServiceCompany | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsLandmark(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsInternationalShippingAgency(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchants(Shenzhen)PowerSupply.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsShenzhenRo-RoShippingCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMarineShippingAgencyShenzhenCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| YiuLianDockyards(Shekou)Limited | Controlledbythesameultimatecontrollingshareholder |
| YiuLianDockyardsLimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsHoulderInsuranceConsultingCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsGroupFinanceCompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsPortInvestmentDevelopmentCompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsLifeInsuranceCompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantFood(China)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsLogisticsGroupQingdaoCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsZhangzhouDevelopmentZonePowerSupplyCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsSecuritiesCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaTrafficImportandExportCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsYourCellar(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
-153-
(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
4.OtherrelatedpartiesoftheCompany-continued
| Nameofotherrelatedparties | RelationshipwiththeCompany |
| ChinaMerchantsHealthcare(Qichun)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaOceanShippingTallyShenzhenCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinotransAirTransportationDevelopmentCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinotransCentralChinaCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| Portx.cn | Controlledbythesameultimatecontrollingshareholder |
| Sinotrans(HK)ShippingLimited | Controlledbythesameultimatecontrollingshareholder |
| SinowayShippingLtd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchants(Liaoning)PortDevelopmentCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsHeavyIndustry(Jiangsu)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinotransShantouCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsHoldings(HongKong)CompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| GuangzhouHangshangInt'lShippingAgencyCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenChinaMerchantsShekouAssetManagementCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaYangtzeShippingGroupWuhanRealEstateCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsApartmentDevelopment(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenWanhaiMansionManagementCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsGodown,Wharf&TransportationCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchants-LogisticsShenzhenCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaOceanShippingAgencyShenzhen | Controlledbythesameultimatecontrollingshareholder |
| ChinaMarineShippingAgencyNingboCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinotransContainerLines(HongKong)CompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| SinotransContainerLinesCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| HoiTungInnotek(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenScienceandTechnologyUniversityPhaseIIRealEstateManagementCo.,Ltd. | Originalcontrolledbytheultimatecontrollingshareholder |
| KhorAmbadoFZCo | Withsignificantinfluencefromtheultimatecontrollingshareholder |
| DjiboutiInternationalHotelCompany | Withsignificantinfluencefromtheultimatecontrollingshareholder |
| ChinaMerchantBankCo.,Ltd. | Withsignificantinfluencefromtheultimatecontrollingshareholder |
| ShenzhenChinaMerchantsPortTradeCenterforSea-landMaterials | Withsignificantinfluencefromtheultimatecontrollingshareholder |
Note1:RefertoNote(VI)1.It'snolongerarelatedpartyoftheGroupsince19November2020.Note2:TheCompany'sformerChairmanFuGangfeng(resignedon31January2020)workedasthedirectorand
generalmanagerofChinaCOSCOShippingCorporationLimitedwithin12monthsafterhisdeparture.From1January2020to27March2020,theCompany'sdeputygeneralmanagerZhengShaopingworkedbothastheseniormanagementpersonneloftheCompanyandastheChairmanoftheBoardofAntongHoldingCo.,Ltd.FromSeptember25toOctober11,2020,theCompany'sDeputyGeneralManagerZhengShaopingworkedastheCompany'sseniormanagementandthememberofboardofdirectorsofAntongHoldingsCo.,Ltd.FromOctober12,2020toDecember31,2020,theCompany'sDeputyGeneralManagerZhengShaoping,servedbothastheseniormanagementofthecompanyandasthechairmanofAntongHoldingCo.,Ltd.Therefore,therelatedpartytransactionsandbalancesfortheperiodinwhichtheaforesaidtwopersonswerethedirector,seniormanagementpersonnelofChinaCOSCOShippingCorporationLimitedandAntongHoldingsCo.,Ltd.andforthe12monthsaftersuchperiodaredisclosed.
-154-
(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions
(1)Renderingandreceiptofservice
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Receiptofservice: | ||||
| NanshanGroupanditssubsidiaries | Serviceexpenditure | Negotiation | 29,612,136.31 | 59,399,028.43 |
| ShenzhenBayElectricityIndustryCo.,Ltd. | Serviceexpenditure | Negotiation | 29,148,667.42 | - |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Serviceexpenditure | Negotiation | 16,335,069.80 | 18,116,312.14 |
| HoiTung(Shanghai)CompanyLimited | Serviceexpenditure | Negotiation | 9,886,142.11 | 1,472,835.51 |
| YiuLianDockyardsLimited | Serviceexpenditure | Negotiation | 9,274,213.41 | 11,822,773.93 |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | Serviceexpenditure | Negotiation | 6,616,945.42 | 8,063,768.58 |
| ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd. | Serviceexpenditure | Negotiation | 844,512.39 | 2,496,785.30 |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | Serviceexpenditure | Negotiation | 5,078,367.51 | 5,302,779.67 |
| ChinaMerchantsZhangzhouDevelopmentZonePowerSupplyCo.,Ltd. | Serviceexpenditure | Negotiation | 4,548,046.20 | 5,050,730.12 |
| ShenzhenWestPortSecurityServiceCompany | Serviceexpenditure | Negotiation | 4,159,456.50 | - |
| ChinaMarineShippingAgencyShenzhenCo.,Ltd. | Serviceexpenditure | Negotiation | 2,403,262.96 | 2,998,142.60 |
| ChinaMerchantsYourCellar(Shenzhen)Co.,Ltd. | Serviceexpenditure | Negotiation | 2,201,965.59 | 1,887,287.74 |
| DjiboutiInternationalHotelCompany | Serviceexpenditure | Negotiation | 2,028,556.99 | - |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | Serviceexpenditure | Negotiation | 1,994,707.90 | 98,489.92 |
| ChinaMerchantsLifeInsuranceCompanyLimited | Serviceexpenditure | Negotiation | 1,828,798.25 | 1,674,762.08 |
| ChinaMerchantFood(China)Co.,Ltd. | Serviceexpenditure | Negotiation | 1,790,459.66 | 7,720.06 |
| ChinaMerchantsLogisticsGroupQingdaoCo.,Ltd. | Serviceexpenditure | Negotiation | 1,506,882.06 | 4,291,294.93 |
| ChinaMerchantsHealthcare(Qichun)Co.,Ltd. | Serviceexpenditure | Negotiation | 1,473,607.08 | - |
| ChinaOceanShippingTallyShenzhenCo.,Ltd. | Serviceexpenditure | Negotiation | 1,208,224.86 | 1,168,331.49 |
| DalianPortLogisticsTechnologyCo.,Ltd. | Serviceexpenditure | Negotiation | 1,068,592.04 | - |
| ChinaMerchantsHoulderInsuranceConsultingCo.,Ltd. | Serviceexpenditure | Negotiation | 273,247.88 | 2,475,979.40 |
| ChinaTrafficImportandExportCo.,Ltd. | Serviceexpenditure | Negotiation | 224,342.82 | 1,076,783.22 |
| SinotransAirTransportationDevelopmentCo.,Ltd. | Serviceexpenditure | Negotiation | - | 1,178,932.56 |
| ChinaMerchants(Shenzhen)PowerSupplyCo.,Ltd. | Serviceexpenditure | Negotiation | - | 2,611,504.71 |
| Otherrelatedparties | Serviceexpenditure | Negotiation | 5,120,243.27 | 5,718,581.57 |
| ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd. | Propertyutilities | Negotiation | 7,567,376.65 | 19,706,450.63 |
| NanshanGroupanditssubsidiaries | Propertyutilities | Negotiation | - | 5,923,767.12 |
| Otherrelatedparties | Propertyutilities | Negotiation | 1,269,101.74 | 2,114,730.66 |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | Leaseservicefee | Negotiation | - | 6,447,169.81 |
| ChinaMerchantsBankCo.,Ltd. | Purchaseofwealthmanagementproducts | Negotiation | 850,000,000.00 | - |
| ChinaMerchantsGroupFinanceCompanyLimited | Interestexpense | Negotiation | 40,218,054.32 | 42,581,045.29 |
| ChinaMerchantBankCo.,Ltd. | Interestexpense | Negotiation | 2,820,905.00 | 3,618,321.05 |
| PortdeDjiboutiS.A. | Interestexpense | Negotiation | - | 7,364,273.28 |
| Total | 1,040,501,886.14 | 224,668,581.80 | ||
-155-
(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(1)Renderingandreceiptofservice-continued
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Renderingofservice: | ||||
| ChinaCOSCOShippingGroupanditssubsidiaries | Servicerevenue | Negotiation | 473,089,186.47 | 128,551,617.88 |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | Servicerevenue | Negotiation | 138,294,236.96 | 142,786,686.45 |
| AntongHoldingsCo.,Ltd.anditssubordinatecompanies | Servicerevenue | Negotiation | 127,713,616.40 | 30,031,214.77 |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | Servicerevenue | Negotiation | 61,942,724.25 | 33,230,929.57 |
| ChinaMarineShippingAgencyZhanjiangCo.,Ltd | Servicerevenue | Negotiation | 53,774,870.23 | 48,467,968.01 |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Servicerevenue | Negotiation | 49,104,741.77 | 54,976,948.20 |
| ShantouInternationalContainerTerminalsLimited | Servicerevenue | Negotiation | 15,018,042.39 | - |
| ChinaOceanShippingAgencyShenzhen | Servicerevenue | Negotiation | 11,872,191.59 | 22,026,784.26 |
| PortdeDjiboutiS.A. | Servicerevenue | Negotiation | 10,943,478.47 | - |
| ChinaMerchantsOceanShippingAgencyShenZhen | Servicerevenue | Negotiation | 10,407,471.90 | 5,516,336.45 |
| ShenzhenBaohongE-CommerceIntegratedServicesCo.,Ltd. | Servicerevenue | Negotiation | 9,183,840.58 | 7,624,557.93 |
| YiuLianDockyards(Shekou)Limited | Servicerevenue | Negotiation | 6,825,979.02 | 5,818,220.17 |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | Servicerevenue | Negotiation | 6,781,159.20 | 6,487,127.00 |
| PenavicoShenzhenWarehousingCo.,Ltd. | Servicerevenue | Negotiation | 6,450,089.03 | 424,691.17 |
| SinotransContainerLinesCo.,Ltd. | Servicerevenue | Negotiation | 5,752,204.72 | 4,173,590.92 |
| SouthChinaSinotransSupplyChainManagementCo.,Ltd. | Servicerevenue | Negotiation | 5,730,351.44 | 3,574,103.34 |
| SinotransShenzhenQianhaiSupplyChainManagementLtd. | Servicerevenue | Negotiation | 5,366,080.32 | 1,073,773.97 |
| ChinaMarineShippingAgencyShenzhenCo.,Ltd. | Servicerevenue | Negotiation | 4,566,415.18 | 7,924,860.20 |
| NingboDaxie | Servicerevenue | Negotiation | 4,212,324.06 | 3,973,305.23 |
| Portx.cn | Servicerevenue | Negotiation | 3,627,717.89 | - |
| Sinotrans(HK)ShippingLimited | Servicerevenue | Negotiation | 3,516,284.75 | - |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Servicerevenue | Negotiation | 3,403,438.43 | 9,297,044.19 |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Servicerevenue | Negotiation | 3,147,064.19 | 3,165,271.40 |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | Servicerevenue | Negotiation | 2,771,236.94 | 637,333.96 |
| SinowayShippingLtd. | Servicerevenue | Negotiation | 2,380,557.22 | 101,246.40 |
| GuizhouQiandongnanContinentalLandPortOperationCo.,Ltd. | Servicerevenue | Negotiation | 2,006,774.37 | 4,995,026.14 |
| ChinaMerchants(Liaoning)PortDevelopmentCo.,Ltd. | Servicerevenue | Negotiation | 1,886,792.45 | - |
| ChinaMerchantsPortInvestmentDevelopmentCompanyLimited | Servicerevenue | Negotiation | 1,870,575.47 | - |
| GuizhouEastLandPortOperationCo.,Ltd. | Servicerevenue | Negotiation | 1,854,382.19 | 5,538,484.09 |
| QingdaoBondedLogisticsParkSinotransWarehousingLogisticsCo.,Ltd. | Servicerevenue | Negotiation | 1,777,701.97 | 1,855,239.95 |
| ChinaMerchantsHeavyIndustry(Jiangsu)Co.,Ltd. | Servicerevenue | Negotiation | 1,771,945.79 | 54,339.62 |
| ShantouZhonglianTallyCo.,Ltd. | Servicerevenue | Negotiation | 1,720,385.71 | - |
| ShanghaiInternationalPort(Group)Co.,Ltd. | Servicerevenue | Negotiation | 1,631,054.72 | 1,588,035.85 |
| YantaiPortGroupLaizhouPortCo.,Ltd. | Servicerevenue | Negotiation | 1,448,756.38 | 1,775,122.48 |
| DoralehMulti-purposePort | Servicerevenue | Negotiation | 1,396,158.59 | 1,062,268.33 |
| ZhanjiangCMHKInvestmentCo.,Ltd. | Servicerevenue | Negotiation | 1,226,801.94 | - |
| InternationalDjiboutiIndustrialParksOperationFZCo | Servicerevenue | Negotiation | 1,219,559.23 | 5,109,432.57 |
| TerminalLinkSAS | Servicerevenue | Negotiation | 1,203,144.53 | 1,362,717.34 |
| ZhangzhouCOSCOShippingAgencyCo.,Ltd. | Servicerevenue | Negotiation | 1,171,144.27 | 2,465,482.40 |
| SinotransCentralChinaCo.,Ltd. | Servicerevenue | Negotiation | 1,097,750.34 | - |
| SinotransContainerLines(HongKong)Co.,Ltd. | Servicerevenue | Negotiation | 1,049,302.38 | 2,211,004.97 |
| ChinaMerchants-LogisticsShenzhenCo.,Ltd. | Servicerevenue | Negotiation | 1,007,155.73 | 1,267,111.56 |
| QingdaoSinotransSupplyChainManagementCo.,Ltd. | Servicerevenue | Negotiation | 902,612.31 | 1,643,202.86 |
| NanshanGroupanditssubsidiaries | Servicerevenue | Negotiation | 822,683.39 | 1,000,829.05 |
| SinotransShantouCo.,Ltd. | Servicerevenue | Negotiation | 747,042.39 | 1,142,737.27 |
| CMHK | Servicerevenue | Negotiation | 126,500.00 | 1,412,000.00 |
| QingdaoWutongCenturySupplyChainCo.,Ltd. | Servicerevenue | Negotiation | 99,572.06 | 2,061,301.86 |
| GreatHornDevelopmentCompanyFZCo | Servicerevenue | Negotiation | - | 2,492,673.00 |
| KhorAmbadoFZCo | Servicerevenue | Negotiation | - | 13,593,100.08 |
| KumportLimanHizmetleriveLojistikSanayiveTicaretAnonim?irketi | Servicerevenue | Negotiation | - | 1,200,615.17 |
| Sinotrans(NZ)Limited | Servicerevenue | Negotiation | - | 6,191,950.42 |
-156-
(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(1)Renderingandreceiptofservice-continued
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Renderingofservice: | ||||
| GuangdongZhanjiangPortLongtengShippingCo.,Ltd. | Servicerevenue | Negotiation | 4,250,943.39 | |
| ShenzhenChinaMerchantsShekouAssetManagementCo.,Ltd. | Servicerevenue | Negotiation | - | 2,297,545.50 |
| ShenzhenZhaogangSeaandLandMaterialTradeCenter | Servicerevenue | Negotiation | - | 2,026,044.81 |
| Otherrelatedparties | Servicerevenue | Negotiation | 10,373,324.37 | 8,690,168.35 |
| PortofNewcastleanditssubsidiaries | Interestincome | Negotiation | 61,452,466.62 | 62,584,543.33 |
| ZhanjiangCMHKInvestmentCo.,Ltd. | Interestincome | Negotiation | 34,310,102.60 | 48,716,656.41 |
| ChinaMerchantBankCo.,Ltd. | Interestincome | Negotiation | 25,077,926.86 | 26,074,287.83 |
| TerminalLinkSAS | Interestincome | Negotiation | 130,683,767.31 | 56,993.75 |
| ChinaMerchantsGroupFinanceCompanyLimited | Interestincome | Negotiation | 17,071,627.25 | 7,814,725.11 |
| TianjinHaitianBondedLogisticsCo.,Ltd. | Interestincome | Negotiation | 1,507,141.63 | 1,394,695.28 |
| KhorAmbadoFZCo | Interestincome | Negotiation | - | 18,187,714.88 |
| Otherrelatedparties | Interestincome | Negotiation | 39,343.77 | 3,811.07 |
| Total | 1,334,428,800.02 | 761,984,416.19 | ||
(2)Leaseswithrelatedparties
TheGroupasthelessor:
| Nameofthelessee | Typeofleasedassets | Pricingmethodanddecisionproceduresofrelatedtransactions | Leaseincomerecognizedinthecurrentyear | Leaseincomerecognizedintheprioryear |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Portandterminalfacilities | Negotiation | 9,530,634.40 | 4,571,984.36 |
| QingdaoBondedLogisticsParkSinotransWarehousing&LogisticsCo.,Ltd. | Buildingsandstructures | Negotiation | 5,246,389.08 | 3,816,263.45 |
| ChinaMerchantFood(China)Co.,Ltd. | Buildingsandstructures | Negotiation | 4,979,293.98 | 5,675,752.58 |
| ChinaTrafficImportandExportCo.,Ltd. | Buildingsandstructures | Negotiation | 4,791,084.02 | 3,943,926.21 |
| QingdaoSinotransSupplyChainManagementCo.,Ltd. | Buildingsandstructures | Negotiation | 3,937,228.69 | 2,678,324.75 |
| YiuLianDockyards(Shekou)Limited | Buildingsandstructures | Negotiation | 2,612,180.18 | 2,441,075.14 |
| NanshanGroupanditssubsidiaries | Buildingsandstructures | Negotiation | 2,451,852.32 | 2,698,718.83 |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Buildingsandstructures | Negotiation | 2,402,484.55 | - |
| ChinaMerchantsSecuritiesCo.,Ltd. | Buildingsandstructures | Negotiation | 2,364,578.34 | 2,330,741.02 |
| QingdaoWutongCenturySupplyChainCo.,Ltd. | Buildingsandstructures | Negotiation | 960,707.68 | 1,082,330.31 |
| Otherrelatedparties | Buildingsandstructures,landuserights | Negotiation | 6,612,178.37 | 3,441,589.35 |
| Total | 45,888,611.61 | 32,680,706.00 |
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(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(2)Leaseswithrelatedparties-continuedTheGroupasthelessee:
| Nameofthelessor | Typeofleasedassets | Rental(year) | Leaseterm(disclosetheperiodcoveredbycontract) | Othersignificantleaseterms |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | Portandterminalfacilities | 103,616,724.54 | 19March2018-26March2024 | N/A |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | Machineryequipment,portandterminalfacilities | 63,602,263.89 | 30November2018-30November2024 | N/A |
| NanshanGroupanditssubsidiaries | Buildingsandstructures | 57,094,005.40 | 1January2019-31December2023 | N/A |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | Machineryequipment | 46,381,918.54 | 31October2017-27October2023 | N/A |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | Portandterminalfacilities | 35,385,536.56 | 1January2020-31December2021 | N/A |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | Machineryequipment | 17,717,147.04 | 26December2016-15November2022 | N/A |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | Portandterminalfacilities | 14,633,851.19 | 1January2020-31December2020 | N/A |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | Other | 5,823,873.60 | 1January2020-31December2020 | N/A |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd. | Other | 4,169,811.20 | 1March2020-31December2020 | Withprogressivelydecreasingrent,andtheleaseterminatedinSeptember2020 |
| NanshanGroupanditssubsidiaries | Other | 3,198,846.84 | 1January2018-31December2018 | Attachedwithrenewaloption |
| NanshanGroupanditssubsidiaries | Buildingsandstructures | 3,101,220.22 | 1January2019-31December2019 | Attachedwithrenewaloption |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | Buildingsandstructures | 2,632,960.86 | 1January2018-31December2020 | N/A |
| NanshanGroupanditssubsidiaries | Other | 2,619,047.62 | 1May2015-30April2020 | N/A |
| ShenzhenNanyou(Holdings)Co.,Ltd. | Other | 1,995,553.20 | 1January2020-31December2020 | N/A |
| NanshanGroupanditssubsidiaries | Other | 1,817,704.08 | 1January2016-31December2018 | Attachedwithrenewaloption |
| NanshanGroupanditssubsidiaries | Buildingsandstructures | 1,468,461.12 | 1July2019-31December2019 | Attachedwithrenewaloption |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | Buildingsandstructures | 1,339,191.69 | 1January2018-31December2020 | N/A |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | Portandterminalfacilities | 990,257.55 | 1May2018–30April2021 | N/A |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | Buildingsandstructures | 877,680.00 | 1January2018-31December2020. | Attachedwithrenewaloption |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | Buildingsandstructures | 819,000.00 | 22March2020-28February2021 | N/A |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | Buildingsandstructures | 777,000.00 | 22March2019-21March2020 | N/A |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | Buildingsandstructures | 687,796.80 | 1September2018-31December2020 | N/A |
| NanshanGroupanditssubsidiaries | Buildingsandstructures | 639,738.84 | 1January2019-31December2023 | Attachedwithrenewaloption |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd. | Other | 485,224.52 | 10February2020-31May2020 | N/A |
-158-
(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(2)Leaseswithrelatedparties-continuedTheGroupasthelessee:-continued
| Nameofthelessor | Typeofleasedassets | Rental(year) | Leaseterm(disclosetheperiodcoveredbycontract) | Othersignificantleaseterms |
| NanshanGroupanditssubsidiaries | Buildingsandstructures | 352,656.00 | 1May2019-31December2019 | Attachedwithrenewaloption |
| NanshanGroupanditssubsidiaries | Other | 346,575.86 | 1January2017-25August2021 | N/A |
| ChinaYangtzeShippingGroupWuhanRealEstateCo.,Ltd. | Buildingsandstructures | 310,196.16 | 15April2019-14January2021 | Thecontracthasterminated |
| NanshanGroupanditssubsidiaries | Other | 230,502.86 | 1January2017-31December2020. | Attachedwithrenewaloption |
| ShenzhenNanyou(Holdings)Co.,Ltd. | Other | 218,999.99 | 1January2020-31July2020 | Thecontracthasterminated |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | Buildingsandstructures | 218,326.32 | 25August2018-31December2020 | N/A |
| NanshanGroupanditssubsidiaries | Buildingsandstructures | 147,490.74 | 1May2019-31December2019 | Attachedwithrenewaloption |
| ChinaMerchantsApartmentDevelopment(Shenzhen)Co.,Ltd. | Buildingsandstructures | 133,680.00 | 1January2020-31December2020 | N/A |
| ShenzhenWanhaiMansionManagementCo.,Ltd. | Buildingsandstructures | 101,620.00 | 15June2018-14June2021 | Progressivelyincreasingrent |
| ChinaMerchantsLandmark(Shenzhen)Co.,Ltd. | Buildingsandstructures | 101,620.00 | 15June2018-14June2021 | Progressivelyincreasingrent |
| ChinaMerchantsGodown,Wharf&TransportationCo.,Ltd. | Motorvehiclesandcargoships | 95,152.23 | 1January2020-28February2020 | N/A |
| NanshanGroupanditssubsidiaries | Portandterminalfacilities | 93,981.20 | 1January2019-31December2023 | Attachedwithrenewaloption |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | Buildingsandstructures | 76,421.87 | 25August2018-31December2020 | N/A |
| ChinaMerchants-LogisticsShenzhenCo.,Ltd. | Buildingsandstructures | 41,360.00 | 1June2019–30April2020 | N/A |
| NanshanGroupanditssubsidiaries | Buildingsandstructures | 22,080.00 | 1January2015-31December2015 | Attachedwithrenewaloption |
| Total | 374,365,478.53 |
(3)Relatedpartyguarantees
TheGroupastheguarantor
| Securedparty | CreditLine | Guaranteedamount | Commencementdate | Maturity | Theguaranteehasbeencompletedornot |
| 2020 | |||||
| TerminalLinkSAS(Note1) | 71,003,968.05 | 71,003,968.05 | 1June2013 | 2033 | No |
| KhorAmbadoFZCo(Note2) | 187,917,834.24 | 113,125,755.69 | 24May2019 | 2032 | No |
| Total | 258,921,802.29 | 184,129,723.74 | |||
| 2019 | |||||
| TerminalLinkSAS(Note1) | 24,982,114.97 | 12,241,236.33 | 1June2013 | 2019 | Yes |
| TerminalLinkSAS(Note1) | 80,305,197.15 | 80,305,197.15 | 1June2013 | 2033 | No |
| KhorAmbadoFZCo(Note2) | 200,914,560.00 | 118,398,397.00 | 24May2019 | 2032 | No |
| PortdeDjiboutiS.A. | 343,160,000.00 | 24,192,780.00 | 14June2016 | 14June2019 | Yes |
| Total | 649,361,872.12 | 235,137,610.48 | |||
-159-
(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(3)Relatedpartyguarantees-continued
TheGroupastheguarantor-continuedNote1:CMACGMS.A.isanothershareholderofTerminalLinkSAS,anassociateoftheGroup.TheGrouphas
madeacommitmenttoCMACGMS.A.thattheGroupwillprovidesguaranteeforitsbankloanfinancingtotheassociateTerminalLinkSASandotherliabilitiestotheextentoftheGroup's49%ownershipinterestinthecompany.TheactualguaranteedamountisRMB71,003,968.05on31December2020.Ifanyguaranteeliabilityoccurs,theGroupwillcompensateCMACGMS.A.Note2:KhorAmbadoFZCoisarelatedcompanyoftheGroup'scommonultimatecontrollingshareholder.The
Groupprovidesguaranteeforitsbankloansandotherliabilities,theactualamountofwhichasat31December2020isRMB113,125,755.69.
(4)Borrowingsandloanswithrelatedparties
| Relatedparty | Amount | Commencementdate | Maturitydate | Description |
| 2020 | ||||
| Borrowings | ||||
| ChinaMerchantsGroupFinanceCompanyLimited | 1,301,430,000.00 | 22October2020 | 21October2021 | Fixedannualinterestrateof3.6000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 672,821,155.13 | 28December2020 | 27January2021 | Fixedannualinterestrateof3.4500% |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 200,235,277.84 | 14April2020 | 13April2024 | Fixedannualinterestrateof4.0500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 200,235,277.78 | 25September2020 | 24September2021 | Fixedannualinterestrateof3.8500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 192,039,573.34 | 30December2020 | 29December2021 | Fixedannualinterestrateof3.7100% |
| ChinaMerchantsGroupFinanceCompanyLimited | 76,929,960.60 | 25March2020 | 12March2029 | Fixedannualinterestrateof4.5050% |
| ChinaMerchantsGroupFinanceCompanyLimited | 70,086,890.22 | 22June2020 | 21June2024 | Fixedannualinterestrateof1.2000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 50,606,027.37 | 5June2020 | 2March2021 | Fixedannualinterestrateof1.9900% |
| ChinaMerchantsGroupFinanceCompanyLimited | 50,056,680.56 | 21May2020 | 20May2021 | Fixedannualinterestrateof3.7100% |
| ChinaMerchantsGroupFinanceCompanyLimited | 40,000,000.00 | 20December2020 | 31October2023 | Fixedannualinterestrateof1.2000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 47,000,000.00 | 6January2020 | 7October2024 | Fixedannualinterestrateof4.5125% |
| ChinaMerchantsGroupFinanceCompanyLimited | 30,035,291.66 | 4December2020 | 20May2021 | Fixedannualinterestrateof3.7100% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,000,000.00 | 3November2020 | 12May2021 | Fixedannualinterestrateof2.5000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 1,500,000.00 | 17December2020 | 10December2028 | Fixedannualinterestrateof4.4100% |
| Total | 2,942,976,134.50 | |||
| Lendings | ||||
| TerminalLinkSAS | 2,975,444,121.38 | 26March2020 | 26March2028 | Fixedannualinterestrateof6.0000% |
| PortofNewcastleanditssubsidiaries | 815,144,304.00 | 30May2020 | 23July2023 | Fixedannualinterestrateof8.0000% |
| TianjinHaitianBondedLogisticsCo.,Ltd. | 34,300,000.00 | 3January2020 | 2January2023 | Fixedannualinterestrateof4.7500% |
| Total | 3,824,888,425.38 | |||
| 2019 | ||||
| Borrowings | ||||
| ChinaMerchantsGroupFinanceCompanyLimited | 300,378,812.51 | 2December2019 | 1December2020 | Fixedannualinterestrateof4.1325% |
| ChinaMerchantsGroupFinanceCompanyLimited | 270,548,281.28 | 22April2019 | 21April2020 | Fixedannualinterestrateof4.3500% |
| ChinaMerchantsFinancialLeasing(Tianjin)Co.,Ltd. | 150,000,000.00 | 23December2019 | 23December2025 | Fixedannualinterestrateof4.7500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 150,000,000.00 | 27August2019 | 26August2020 | Fixedannualinterestrateof4.1325% |
| ChinaMerchantsGroupFinanceCompanyLimited | 56,483,984.71 | 1July2019 | 1July2034 | Fixedannualinterestrateof4.6550% |
| ChinaMerchantsGroupFinanceCompanyLimited | 50,061,625.00 | 4June2019 | 3June2020 | Fixedannualinterestrateof4.3500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 50,000,000.00 | 29July2019 | 28July2022 | Fixedannualinterestrateof4.5125% |
| ChinaMerchantsGroupFinanceCompanyLimited | 47,000,000.00 | 14October2019 | 13October2024 | Fixedannualinterestrateof4.7500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 33,052,804.00 | 22July2019 | 21July2020 | Fixedannualinterestrateof4.3500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 29,000,000.00 | 18October2019 | 17October2023 | Fixedannualinterestrateof4.7500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 28,000,000.00 | 15January2019 | 14January2024 | Fixedannualinterestrateof4.7500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 23,000,000.00 | 10June2019 | 14January2024 | Fixedannualinterestrateof4.7500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,000,000.00 | 28December2019 | 31October2023 | Fixedannualinterestrateof1.2000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 6,000,000.00 | 22July2019 | 21July2020 | Fixedannualinterestrateof4.3500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 1,000,000.00 | 24December2019 | 23December2020 | Fixedannualinterestrateof4.3500% |
| Total | 1,204,525,507.50 | |||
| Lendings | ||||
| ChinaMerchantsAntongLogisticsManagementCompany | 50,000,000.00 | 24September2019 | 24September2021 | Fixedinterestrateof8.5000% |
-160-
(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(5)Assettransferfromrelatedparties
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountaccumulatedinthecurrentperiod | Amountaccumulatedinthepriorperiod |
| HoiTung(Shanghai)CompanyLimited | Machineryequipment | Negotiation | 8,202,477.87 | 5,891,378.30 |
| HoiTungInnotek(Shenzhen)Co.,Ltd. | Machineryequipment | Negotiation | 1,946,000.00 | 738,053.10 |
| ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd. | Ordinaryofficeequipment | Negotiation | - | 710,229.95 |
| KhorAmbadoFZCo | Intangibleassets | Negotiation | - | 190,885,258.20 |
| Otherrelatedparties | Ordinaryofficeequipment | Negotiation | 83,584.00 | 330,810.79 |
| Total | 10,232,061.87 | 198,555,730.34 |
(6)Compensationforkeymanagementpersonnel
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Compensationforkeymanagementpersonnel | 20,552,276.50 | 26,856,013.14 |
6.Amountsduefrom/torelatedparties
(1)Amountsduefromrelatedparties
| Item | Relatedparty | Closingbalance | Openingbalance |
| Cashandbankbalances | ChinaMerchantBankCo.,Ltd. | 1,899,970,131.14 | 1,451,996,464.50 |
| ChinaMerchantsGroupFinanceCompanyLimited | 1,568,924,175.58 | 890,065,186.36 | |
| Total | 3,468,894,306.72 | 2,342,061,650.86 | |
| Held-for-tradingfinancialassets | ChinaMerchantBankCo.,Ltd. | 850,000,000.00 | - |
| Accountsreceivable | ChinaCOSCOShippingGroupanditssubsidiaries | 120,615,548.37 | 60,545,437.55 |
| AntongHoldingsCo.,Ltd.anditssubordinatecompanies | 10,508,254.42 | 60,112,564.13 | |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | 7,777,640.18 | 3,583,505.77 | |
| ChinaMarineShippingAgencyNingboCo.,Ltd. | 7,773,568.86 | - | |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | 4,326,223.02 | 7,728,194.66 | |
| GuizhouEastLandPortOperationCo.,Ltd. | 3,612,221.02 | 4,043,600.57 | |
| KhorAmbadoFZCo | 2,774,015.84 | 3,113,788.09 | |
| ShenzhenBaohongE-CommerceIntegratedServicesCo.,Ltd. | 2,641,391.12 | 4,643,545.31 | |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | 2,007,669.18 | 2,986,271.27 | |
| PortdeDjiboutiS.A. | 1,497,611.83 | 1,689,447.85 | |
| GreatHornDevelopmentCompanyFZCo | 1,427,020.52 | 2,771,510.50 | |
| SinotransContainerLinesCo.,Ltd. | 1,148,569.75 | 1,746,120.89 | |
| GuizhouQiandongnanContinentalLandPortOperationCo.,Ltd. | 1,061,604.20 | 2,010,137.38 | |
| SouthChinaSinotransSupplyChainManagementCo.,Ltd. | 1,035,675.13 | 1,808,219.75 | |
| ChinaOceanShippingAgencyShenzhen | 843,054.75 | 5,609,630.60 | |
| ChinaMarineShippingAgencyShenzhenCo.,Ltd. | 322,016.25 | 1,058,089.50 | |
| YantaiPortGroupLaizhouPortCo.,Ltd. | - | 1,853,183.12 | |
| ZhanjiangCMHKInvestmentCo.,Ltd. | - | 1,536,503.45 | |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | - | 4,424,422.68 | |
| Otherrelatedparties | 8,041,402.85 | 5,130,480.00 | |
| Total | 177,413,487.29 | 176,394,653.07 |
-161-
(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
6.Amountsduefrom/torelatedparties-continued
(1)Amountsduefromrelatedparties-continued
| Item | Relatedparty | Closingbalance | Openingbalance |
| Otherreceivables | NanshanGroupanditssubsidiaries | 210,831,000.00 | 313,724,861.31 |
| ChuKongRiverTradeTerminalCo.,Ltd. | 57,607,520.00 | 61,317,510.00 | |
| Tin-CanIslandContainerTerminalLtd | 33,289,037.77 | 82,625,546.31 | |
| ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd. | 31,513,558.59 | 31,513,558.59 | |
| PortdeDjiboutiS.A. | 23,248,597.69 | 24,832,398.83 | |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | 13,378,666.52 | 13,751,368.26 | |
| ZhoushanBlueOceanInvestmentCo.,Ltd. | 4,996,989.39 | - | |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd. | 4,000,000.00 | - | |
| ChinaMerchantsShenzhenRo-RoShippingCo.,Ltd. | 2,899,163.95 | 2,899,163.95 | |
| ChinaMerchants(Liaoning)PortDevelopmentCo.,Ltd. | 2,000,000.00 | - | |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | 1,422,660.84 | 1,514,281.82 | |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | 1,068,658.39 | 1,068,658.39 | |
| SinotransGuangdongCo.,Ltd. | - | 3,803,477.07 | |
| TianjinHaitianBondedLogisticsCo.,Ltd. | 220,500.00 | 33,282,119.52 | |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | - | 50,000,000.00 | |
| Otherrelatedparties | 3,961,060.53 | 4,199,662.93 | |
| Total | 390,437,413.67 | 624,532,606.98 | |
| Prepayments | Otherrelatedparties | 244,729.25 | 1,414,261.04 |
| Othercurrentassets | ChinaMerchantBankCo.,Ltd. | - | 1,528,851,492.46 |
| Non-currentassetsduewithinoneyear | TerminalLinkSAS | 51,286,674.10 | - |
| PortofNewcastleanditssubsidiaries | 16,473,559.57 | 809,702,715.78 | |
| Total | 67,760,233.67 | 809,702,715.78 | |
| Long-termreceivables | TerminalLinkSAS | 2,746,067,386.31 | 9,800,295.76 |
| PortofNewcastleanditssubsidiaries | 815,144,304.00 | - | |
| ZhanjiangCMHKInvestmentCo.,Ltd. | 286,330,144.62 | 1,025,631,435.87 | |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 10,000,000.00 | 14,500,000.00 | |
| ChinaMerchantsAntongLogisticsManagementCompany | - | 50,000,000.00 | |
| TianjinHaitianBondedLogisticsCo.,Ltd. | 34,300,000.00 | - | |
| Total | 3,891,841,834.93 | 1,099,931,731.63 |
(2)Amountsduetorelatedparties
| Item | Relatedparty | Closingbalance | Openingbalance |
| Short-termborrowings | ChinaMerchantsGroupFinanceCompanyLimited | 2,646,853,256.33 | 841,079,404.24 |
| ChinaMerchantBankCo.,Ltd. | - | 70,093,041.67 | |
| Total | 2,646,853,256.33 | 911,172,445.91 | |
| Othercurrentliabilities | ChinaMerchantsGroupFinanceCompanyLimited | 60,606,027.37 | - |
| Accountspayable | NanshanGroupanditssubsidiaries | 9,220,434.36 | 10,747,794.44 |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | 6,381,033.57 | 7,641,839.79 | |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | 2,994,548.16 | 2,974,168.52 | |
| YiuLianDockyardsLimited | 2,271,520.48 | 1,676,082.11 | |
| ChinaMarineShippingAgencyShenzhenCo.,Ltd. | 1,264,544.50 | 535,279.71 | |
| ChinaMerchantsLogisticsGroupQingdaoCo.,Ltd. | 21,834.03 | 1,006,844.56 | |
| Otherrelatedparties | 558,566.85 | 3,078,887.88 | |
| Total | 22,712,481.95 | 27,660,897.01 | |
| Receiptsinadvance | PortdeDjiboutiS.A. | 10,350,122.63 | - |
| Otherrelatedparties | 606,631.45 | 600,535.85 | |
| Total | 10,956,754.08 | 600,535.85 | |
| Contractliabilities | AntongHoldingsCo.,Ltd.anditssubordinatecompanies | 6,774,086.39 | 521,882.13 |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | 2,304,015.01 | 3,577,148.00 | |
| Otherrelatedparties | 3,264,592.40 | 1,932,142.96 | |
| Total | 12,342,693.80 | 6,031,173.09 |
-162-
(X)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
6.Amountsduefrom/torelatedparties-continued
(2)Amountsduetorelatedparties-continued
| Item | Relatedparty | Closingbalance | Openingbalance |
| Otherpayables | PortdeDjiboutiS.A. | 175,497,252.70 | - |
| TerminalLinkSAS | 89,905,681.62 | 88,978,919.98 | |
| SriLankaPortsAuthority | 34,255,854.79 | 31,392,997.47 | |
| ChinaMerchantsPortInvestmentDevelopmentCompanyLimited | 26,418,918.90 | - | |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd. | 20,000,000.00 | - | |
| ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd. | 14,305,122.78 | 20,762,053.30 | |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | 8,447,512.23 | 8,947,256.82 | |
| ChinaMerchantsInvestmentandDevelopmentCo.,Ltd. | 2,910,544.27 | - | |
| ShenzhenBaohongE-CommerceIntegratedServicesCo.,Ltd. | 2,634,014.09 | 199,894.69 | |
| ZhanjiangXiagangUnitedDevelopmentCo.,Ltd. | 1,433,730.78 | 1,433,990.57 | |
| ChinaMerchantFood(China)Co.,Ltd. | 1,161,179.14 | 1,264,171.10 | |
| PenavicoShenzhenWarehousingCo.,Ltd. | 1,127,339.68 | 554,335.48 | |
| SinotransShenzhenQianhaiSupplyChainManagementLtd. | 1,013,738.40 | 492,259.78 | |
| ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd. | 223,640.00 | 9,264,823.90 | |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | 101,708.65 | 1,258,811.65 | |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | 10,000.00 | 11,305,700.00 | |
| ModernTerminalsLimited | - | 59,038,373.05 | |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | - | 11,250,000.00 | |
| YihaiKerryGoldenArowanaCereals,OilsandFoodstuffsCo.,Ltd. | - | 37,402,426.09 | |
| Otherrelatedparties | 6,457,095.12 | 28,926,796.51 | |
| Total | 385,903,333.15 | 312,472,810.39 | |
| Non-currentliabilitiesduewithinoneyear | ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 138,409,402.75 | 145,861,850.10 |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | 58,348,704.99 | 56,146,040.22 | |
| NanshanGroupanditssubsidiaries | 54,030,933.00 | 52,656,827.70 | |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | 13,406,128.42 | 14,269,498.38 | |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | 39,512,425.01 | 5,454,253.54 | |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | - | 5,579,040.25 | |
| ChinaMerchantsLandmark(Shenzhen)Co.,Ltd. | - | 1,242,022.25 | |
| ShenzhenScienceandTechnologyUniversityPhaseIIRealEstateManagementCo.,Ltd. | 3,263,992.11 | ||
| ChinaMerchantsGroupFinanceCompanyLimited | 51,423,306.47 | - | |
| Otherrelatedparties | 348,523.44 | 1,770,041.27 | |
| Total | 355,479,424.08 | 286,243,565.82 | |
| Othernon-currentliabilities | NanshanGroupanditssubsidiaries | 944,011.06 | 1,564,380.59 |
| Long-termborrowings | ChinaMerchantsGroupFinanceCompanyLimited | 426,100,835.53 | 376,483,984.71 |
| ChinaMerchantBankCo.,Ltd. | 109,033,232.39 | 20,000,000.00 | |
| Total | 535,134,067.92 | 396,483,984.71 | |
| Long-termpayables | ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | - | 144,000,000.00 |
| Total | - | 144,000,000.00 | |
| Leaseliabilities | ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 358,333,616.46 | 491,666,949.79 |
| NanshanGroupanditssubsidiaries | 114,304,842.23 | 167,685,128.23 | |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | 104,616,135.92 | 161,829,816.02 | |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | - | 5,691,513.57 | |
| Otherrelatedparties | - | 1,880,637.25 | |
| Total | 577,254,594.61 | 828,754,044.86 |
-163-
(XI)SHARE-BASEDPAYMENTS
1.Overallshare-basedpayments
| TotalequityinstrumentsgrantedbytheCompanyintheyear | 17,198,000 |
| TotalequityinstrumentsexercisedbytheCompanyintheyear | None |
| TotalequityinstrumentsoftheCompanythatbecameinvalidintheyear | None |
| TherangeoftheexercisepriceofthestockoptionsexternallyissuedbytheCompanyattheendoftheyearandtheremainingtermofthecontract | Exerciseprice:RMB17.80;Theremainingtermofthecontract:73months |
| TherangeoftheexercisepriceoftheotherequityinstrumentsexternallyissuedbytheCompanyattheendoftheyearandtheremainingtermofthecontract | None |
2.Share-basedpaymentssettledbyequity
| Themethodusedtodeterminethefairvalueofequityinstrumentsonthedayofgranting | ThecostofgrantedstockoptionswasestimatedusingtheBlackScholesModel. |
| Thebasisfordeterminingthenumberofexercisableequityinstruments | Oneachbalancesheetdateinthewaitingperiod,thebestestimatewasmadeandtheestimatednumberofexercisableequityinstrumentswasmodifiedaccordingtothelatestchangesinthenumberofemployeeswhocanexercisetherightsandothersubsequentinformation. |
| Reasonsforthesignificantdifferencebetweentheestimatesofthisyearandtheestimatesoflastyear | N/A |
| Theaggregateamountofshare-basedpaymentssettledbyequitythatisincludedinthecapitalreserve | 10,096,607.62 |
| Totalexpensesrecognizedfortheshare-basedpaymentssettledbyequityintheyear | 19,213,391.58 |
PursuanttotheOfficialReplyontheImplementationoftheStockOptionIncentivePlanofChinaMerchantsPortGroupCo.,Ltd.byState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil,(No.748[2019],SASAC),andwhichwasdeliberatedandapprovedbythe1
st
ExtraordinaryGeneralMeetingoftheCompanyin2020on3February2020,theCompanyimplementedastockoptionplanwitheffectfrom3February2020togrant238incentiverecipients17,198,000stockoptionswithanexercisepriceofRMB17.80pershare;subjecttothefulfilmentoftheexerciseconditions,40%ofthestockoptionswillbeexercisabletwoyearsafterthegrantdate,30%willbeexercisablethreeyearsafterthegrantdateand30%willbeexercisablefouryearsafterthegrantdate,andcanbeexercisedtosubscribeforsharesoftheCompanywithinoneyear,oneyearandthreeyearsfromtheexercisedate,respectively;eachstockoptionentitlestheholdertosubscribeforonecommonshareoftheCompany.
-164-
(XII)COMMITMENTSANDCONTINGENCIES
1.Significantcommitments
| Item | 31/12/2020 | 31/12/2019 |
| Commitmentsthathavebeenenteredintobuthavenotbeenrecognizedinthefinancialstatements | ||
| -Commitmenttomakecontributionstotheinvestees | 11,500,000.00 | - |
| -Commitmenttoacquireandconstructlong-termassets | 2,682,977,514.73 | 3,767,236,258.74 |
| -Commitmenttoinvestportconstruction | 1,004,960,692.18 | 6,758,563,544.21 |
| -Others | 20,831,652.14 | 354,959,845.19 |
| Total | 3,720,269,859.05 | 10,880,759,648.14 |
2.Contingencies
| Item | 31/12/2020 | 31/12/2019 |
| Contingentliabilitiesbroughtbyexternallitigations(Note1) | 213,109,668.45 | 274,299,826.26 |
| Guaranteeforborrowingsofrelatedparties(Note2) | 184,129,723.74 | 198,703,594.15 |
| Total | 397,239,392.19 | 473,003,420.41 |
Note1:ThisrepresentsthesignificantcontingentliabilitiesarisingfromthelitigationsbetweenTCPandits
subsidiariesandlocaltaxauthority,employeeorformeremployeeofTCPanditssubsidiariesinBrazilatastheyearend.AccordingtothelatestestimatesoftheGroup'smanagement,thepossiblecompensationisRMB213,109,668.45butitisnotlikelytocauseoutflowofeconomicbenefitsfromtheGroup.Therefore,thecontingentliabilitiesarisingfromtheabovependinglitigationsarenotrecognizedasprovisions.Thecounter-bonificationwheretheGroupasthebeneficiarywillbeexecutedbytheformerTCPshareholderthatdisposedtheshares.Accordingtothecounter-bonificationagreement,theformerTCPshareholderneedtomakecounter-bonificationtotheGroupinrespectoftheabovecontingentliabilities,withthecompensationamountnotexceedingpre-determinedamountandspecifiedperiod.Note2:TillDecember31,2020,theguaranteesprovidedbytheGroupforrelatedpartiesaredetailedinNoteX,
5(3).OnDecember31,2020,thedirectorsoftheGroupevaluatedthedefaultrisksofrelatedcompaniesontheabove-mentionedloanfinancingandotherliabilities,andbelievedthattheriskswerenotsignificantandthepossibilityofguaranteedpaymentswasverysmall.Exceptfortheabove-mentionedcontingencies,asofDecember31,2020,theGrouphadnoothermajorguaranteesandothercontingenciesthatneedtobeexplained.
-165-
(XIII)EVENTSAFTERTHEBALANCESHEET
1.CoronavirusDisease2019Sincetheoutbreakofcoronavirusdisease2019("COVID-19")inChinainJanuary2020,thecontrolandpreventionofCOVID-19havebeencarriedoutthroughoutthecountry.TheGroupactivelyrespondedandimplementedtheregulationsandrequirementsonCOVID-19ofthegovernment.ItisexpectedthatCOVID-19andcontrolmeasureswillstillhavetemporaryinfluenceontheGroup'sproductionandmanagementin2021.However,theimpactofCOVID-19oneconomydependsontheprogress,effectivenessanddurationofourpandemicpreventionandcontrolwork.TheGroupcontinuestopaycloseattentiontothedevelopmentofCOVID-19,assessestheimpactonthefinancialpositionandoperatingresultsoftheGroup.TheGroupwillstrengthenthepreventionandcontrolofthepandemicandcarryoutnormalbusinessoperationsproactivelyandorderly.
2.CapitalincreaseforInternationalInformationTechnologyCompany
On18December2020,theCompanyandChinaMerchantsPortHoldings,asubsidiaryoftheCompany,ChinaMerchantsHoldings(International)InformationTechnologyCompanyLimited("CMHIT"),asubsidiaryoftheCompany,DalianPortJifaLogisticsCo.,Ltd.("JifaLogistics"),DalianPortContainerDevelopmentCo.,Ltd.("DalianPortContainer")andYingkouPortGroupCorporation(hereinafterreferredtoas"YingkouPortGroup")enteredintothe"AgreementonEquitySubscriptionandCapitalIncrease"forCMHIT.Accordingtothe"AgreementonEquitySubscriptionandCapitalIncrease",JifaLogisticsandDalianPortContainerrespectivelyusedtheirsharesinDalianPortLogisticsNetworkCo.,Ltd.(hereinafterreferredtoas"DPN"),makingup29.40%and49.63%,andYingkouPortGroupused100%sharesofYingkouGangxinTechnologyCo.,Ltd.(hereinafterreferredtoas"GangxinTechnology")initspossessiontoincreasethecapitalofCMHIT.Beforeandafterthecombination,CMHIT,DPN,andGangxinTechnologywereallundertheultimatecontroloftheCompany'sultimatecontrollingshareholderChinaMerchantsGroupandsuchcontrolwasnottemporary.Theaforesaidcapitalincreasehasbeencompletedon9February2021.Aftertheincrease,theCompany,ChinaMerchantsPortHoldings,JifaLogistics,DalianPortContainer,andYingkouPortGrouprespectiveheld13.18%,
43.74%,13.26%,22.38%and7.44%ofthesharesofCMHIT.CMHITisstillaholdingsubsidiaryoftheCompany.
-166-
(XIII)EVENTSAFTERTHEBALANCESHEET-continued
3.LiaoningPortCo.,Ltd.'smergerofYingkouPortLiabilityCo.,Ltd.by
absorption
On6January2021,themergerofYingkouPortLiabilityCo.,Ltd.bytheCompany'sassociateLiaoningPortCo.,Ltd.byabsorptionwasapprovedbytheCSRCintheReplyonApprovingtheMergerofYingkouPortLiabilityCo.,Ltd.byLiaoningPortCo.,Ltd.byabsorptionandtheSupportingFundRaising(No.3690[2020],CSRC).On29January2021,ShanghaiSecuritiesExchangeterminatedthelistingofthesharesofYingkouPortLiabilityCo.,Ltd.andthenewAsharesofLiaoningPortCo.,Ltd.issuedtothepreviousshareholdersofYingkouPortLiabilityCo.,Ltd.werelistedforcirculationon9February2021.Afterthecompletionoftheaforesaidtransaction,theshareholdingoftheGroupinLiaoningPortCo.,Ltd.isdilutedfrom21.05%to12.00%,butLiaoningPortCo.,Ltd.isstillanassociateoftheGroup,whiletheGroupcandesignate2candidatesoutofthe9membersoftheboardofdirectorsofLiaoningPortCo.,Ltd.(XIV)OTHERSIGNIFICANTEVENTS
1.Segmentreporting
(1)BasisfordeterminingreportingsegmentsandaccountingpoliciesThekeymanagementteamoftheCompanyisregardedastheCODM,whoreviewstheGroup'sinternalreportsinordertoassessperformance,allocateresourcesanddeterminetheoperatingsegments.TheCODMmanagestheGroup'soperationsbydivisionsfrombothbusinessandgeographicperspectives.Inrespectofbusinesssegments,managementassessestheperformanceoftheGroup'sbusinessoperationsincludingportsoperation,bondedlogisticsoperationandotheroperations.PortsoperationPortsoperationincludescontainerterminaloperation,bulkandgeneralcargoterminaloperationoperatedbytheGroupanditsassociatesandjointventures.TheGroup'sreportablesegmentsoftheportsoperationareasfollows:
(a)MainlandChina,HongKongandTaiwan
?PearlRiverDelta?YangtzeRiverDelta
?BohaiRim
?Others(b)OtherlocationsoutsideofMainlandChina,HongKongandTaiwan
-167-
(XIV)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(1)Basisfordeterminingreportingsegmentsandaccountingpolicies-continuedBondedlogisticsoperationBondedlogisticsoperationincludeslogisticsparkoperation,portstransportationandairportcargohandlingoperatedbytheGroupanditsassociatesandjointventures.OtheroperationsOtheroperationsmainlyincludepropertydevelopmentandinvestmentandconstructionofmodularhousingoperatedbytheGroup'sassociates,propertyinvestmentoperatedbytheGroupandcorporatefunction.Eachofthesegmentsunderportsoperationincludetheoperationsofanumberofportsinvariouslocationswithinonegeographiclocation,eachofwhichisconsideredasaseparateoperatingsegmentbytheCODM.Forthepurposeofsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedintoreportablesegmentsongeographicbasisinordertopresentamoresystematicandstructuredsegmentinformation.Togivedetailsofeachoftheoperatingsegments,intheopinionofthedirectorsoftheCompany,wouldresultinparticularsofexcessivelength.Bondedlogisticsoperationandotheroperationsincludeanumberofdifferentoperations,eachofwhichisconsideredasaseparatebutinsignificantoperatingsegmentbytheCODM.Forsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedaccordingtothenaturesoftheiroperationstogiverisetomoremeaningfulpresentation.Therearenomaterialsalesorothertransactionsbetweenthesegments.Asat31December2020,around73%oftheGroup'snon-currentassetsotherthanfinancialinstrumentsanddeferredtaxassetsarelocatedinChineseMainland.
-168-
(XIV)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)SegmentfinancialinformationSegmentfinancialinformationfor2020isasfollows:
| Item | Portsoperation | Bondedlogisticsoperation | Others | Unallocatedamount | Total | |||||
| MainlandChina,HongKongandTaiwan | Otherlocations | Sub-total | ||||||||
| PearlRiverDelta | YangtzeRiverDelta | BohaiRim | Others | |||||||
| Operatingincome | 5,103,018,820.66 | 73,413,401.10 | 62,661,236.23 | 3,333,716,950.72 | 3,474,914,093.88 | 12,047,724,502.59 | 417,391,441.86 | 153,414,051.57 | - | 12,618,529,996.02 |
| Operatingcost | 2,868,604,331.58 | 40,965,225.12 | 48,645,796.45 | 2,681,846,267.01 | 1,767,068,217.21 | 7,407,129,837.37 | 245,350,697.54 | 221,269,319.94 | - | 7,873,749,854.85 |
| Segmentoperatingprofit(lossismarkedwith"-") | 2,234,414,489.08 | 32,448,175.98 | 14,015,439.78 | 651,870,683.71 | 1,707,845,876.67 | 4,640,594,665.22 | 172,040,744.32 | -67,855,268.37 | - | 4,744,780,141.17 |
| Adjustments: | ||||||||||
| Taxesandsurcharges | 26,848,292.01 | 1,525,681.36 | 1,155,694.87 | 48,249,699.24 | 34,531,713.98 | 112,311,081.46 | 20,652,317.30 | 18,092,487.86 | 141,056.95 | 151,196,943.57 |
| Administrativeexpense | 480,217,540.48 | 14,189,057.25 | 9,379,082.71 | 473,751,196.10 | 249,846,408.69 | 1,227,383,285.23 | 42,007,434.87 | 1,093,821.55 | 314,398,393.37 | 1,584,882,935.02 |
| R&Dexpenses | 134,862,028.30 | 3,968,928.76 | - | 15,724,656.48 | - | 154,555,613.54 | - | - | 1,468,500.00 | 156,024,113.54 |
| Financialexpenses | 144,531,069.38 | -14,347,282.70 | -9,466,114.16 | 133,937,742.90 | 44,368,823.84 | 299,024,239.26 | 16,272,850.96 | 19,152,258.84 | 898,280,275.76 | 1,232,729,624.82 |
| Otherincome | 68,057,789.94 | 1,752,751.59 | 33,397.31 | 51,406,035.35 | - | 121,249,974.19 | 10,173,062.64 | 73,365,149.56 | 176,926.89 | 204,965,113.28 |
| Investmentincome | 206,990,240.85 | 3,122,680,492.45 | 351,638,093.79 | 103,533,080.19 | 357,882,216.11 | 4,142,724,123.39 | 19,641,031.91 | 743,610,282.92 | - | 4,905,975,438.22 |
| Gainsfromchangesinfairvalue(lossismarkedwith"-") | 33,063,464.71 | 150,747,337.90 | 77,018,544.18 | 8,043,866.90 | -680,381,987.27 | -411,508,773.58 | - | - | - | -411,508,773.58 |
| Impairmentgainsofcredit(lossismarkedwith"-") | -6,981,966.51 | 1,020,000.00 | - | 28,130,653.65 | -477,897,709.00 | -455,729,021.86 | -2,866,639.45 | - | - | -458,595,661.31 |
| Impairmentgainsofassets(lossismarkedwith"-") | 947,694.12 | - | - | -552,317,736.65 | - | -551,370,042.53 | - | - | - | -551,370,042.53 |
| Gainsfromdisposalofassets(lossismarkedwith"-") | 5,187,792.01 | 507,040.19 | -1,441.50 | 1,600,635,718.61 | 311,438.49 | 1,606,640,547.80 | 305,861.36 | -117,707,200.00 | -32,706.84 | 1,489,206,502.32 |
| Operatingprofit(lossismarkedwith"-") | 1,755,220,574.03 | 3,303,819,413.44 | 441,635,370.14 | 1,219,639,007.04 | 579,012,888.49 | 7,299,327,253.14 | 120,361,457.65 | 593,074,395.86 | -1,214,144,006.03 | 6,798,619,100.62 |
-169-
(XIV)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)Segmentfinancialinformation-continuedSegmentfinancialinformationfor2020isasfollows:-continued
| Item | Portsoperation | Bondedlogisticsoperation | Others | Unallocatedamount | Total | |||||
| MainlandChina,HongKongandTaiwan | Otherlocations | Sub-total | ||||||||
| PearlRiverDelta | YangtzeRiverDelta | BohaiRim | Others | |||||||
| Non-operatingincome | 43,255,084.67 | 43,196.21 | 440,831.36 | 31,641,529.53 | 1,889,443.67 | 77,270,085.44 | 198,116.16 | 1,391,661.99 | 2,779,196.95 | 81,639,060.54 |
| Non-operatingexpenses | 2,960,035.34 | 813,550.98 | 25,948.75 | 22,767,505.78 | 25,707,516.11 | 52,274,556.96 | 42,000.00 | - | 26,687,183.81 | 79,003,740.77 |
| Grossprofit(lossismarkedwith"-") | 1,795,515,623.36 | 3,303,049,058.67 | 442,050,252.75 | 1,228,513,030.79 | 555,194,816.05 | 7,324,322,781.62 | 120,517,573.81 | 594,466,057.85 | -1,238,051,992.89 | 6,801,254,420.39 |
| Incometaxexpenses | 601,626,798.98 | 169,174,798.29 | 62,114,619.13 | 493,406,817.80 | -52,337,554.93 | 1,273,985,479.27 | 15,094,962.21 | 15,750,266.73 | -29,144,338.38 | 1,275,686,369.83 |
| Netprofit(lossismarkedwith"-") | 1,193,888,824.38 | 3,133,874,260.38 | 379,935,633.62 | 735,106,212.99 | 607,532,370.98 | 6,050,337,302.35 | 105,422,611.60 | 578,715,791.12 | -1,208,907,654.51 | 5,525,568,050.56 |
| Segmentassets | 29,429,571,613.29 | 31,908,794,260.42 | 7,246,173,514.37 | 28,817,067,046.45 | 44,448,666,487.24 | 141,850,272,921.77 | 3,315,494,460.32 | 18,756,757,172.64 | 4,621,087,222.48 | 168,543,611,777.21 |
| Totalassetsinthefinancialstatements | 168,543,611,777.21 | |||||||||
| Segmentliabilities | 14,603,582,775.85 | 1,603,641,824.41 | 143,181,803.40 | 8,354,597,807.60 | 9,659,518,990.29 | 34,364,523,201.55 | 583,644,968.76 | 1,372,383,302.75 | 26,546,092,773.08 | 62,866,644,246.14 |
| Totalliabilitiesinthefinancialstatements | 62,866,644,246.14 | |||||||||
| Supplementaryinformation: | ||||||||||
| DepreciationandAmortization | 868,406,726.45 | 16,840,576.77 | 2,019,814.39 | 986,324,667.31 | 843,174,817.50 | 2,716,766,602.42 | 97,449,874.10 | 175,099,107.40 | 22,567,185.84 | 3,011,882,769.76 |
| Interestincome | 40,043,816.95 | 2,611,662.90 | 2,863,089.15 | 61,729,133.61 | 203,403,087.34 | 310,650,789.95 | 1,372,300.78 | 1,105,725.59 | 12,258,928.24 | 325,387,744.56 |
| Interestexpense | 205,070,654.67 | 2,716,578.54 | - | 194,085,313.44 | 312,694,424.90 | 714,566,971.55 | 20,355,642.89 | 34,988,377.32 | 1,179,971,384.93 | 1,949,882,376.69 |
| Investmentincomefromlong-termequityinvestmentunderequitymethod | 136,557,365.02 | 2,329,321,018.47 | 321,168,422.22 | 80,736,626.43 | 357,882,216.11 | 3,225,665,648.25 | 19,641,031.91 | 743,610,282.92 | - | 3,988,916,963.08 |
| Long-termequityinvestmentunderequitymethod | 4,141,735,655.77 | 28,460,075,468.21 | 6,275,998,231.07 | 604,585,694.21 | 13,303,915,012.11 | 52,786,310,061.37 | 736,196,163.40 | 12,709,417,198.68 | - | 66,231,923,423.45 |
| Non-currentassetsotherthanlong-termequityinvestment | 21,716,318,098.15 | 4,256,897,677.23 | 24,886,574.80 | 19,427,332,228.33 | 24,705,573,985.43 | 70,131,008,563.94 | 2,226,903,590.34 | 5,238,035,244.36 | 422,618,810.40 | 78,018,566,209.04 |
-170-
(XIV)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)Segmentfinancialinformation-continuedSegmentfinancialinformationfor2019isasfollows:
| Item | Portsoperation | Bondedlogisticsoperation | Others | Unallocatedamount | Total | |||||
| MainlandChina,HongKongandTaiwan | Otherlocations | Sub-total | ||||||||
| PearlRiverDelta | YangtzeRiverDelta | BohaiRim | Others | |||||||
| Operatingincome | 5,196,613,368.06 | - | 65,287,182.79 | 3,048,109,069.32 | 3,237,062,565.69 | 11,547,072,185.86 | 411,410,069.19 | 165,347,168.69 | - | 12,123,829,423.74 |
| Operatingcost | 3,008,092,503.04 | - | 54,620,318.87 | 2,442,406,257.78 | 1,680,548,644.03 | 7,185,667,723.72 | 240,230,706.61 | 223,022,489.38 | - | 7,648,920,919.71 |
| Segmentoperatingprofit(lossismarkedwith"-") | 2,188,520,865.02 | - | 10,666,863.92 | 605,702,811.54 | 1,556,513,921.66 | 4,361,404,462.14 | 171,179,362.58 | -57,675,320.69 | - | 4,474,908,504.03 |
| Adjustments: | ||||||||||
| Taxesandsurcharges | 28,208,048.74 | 902,080.83 | 1,226,820.81 | 41,913,977.40 | 74,183,581.47 | 146,434,509.25 | 10,405,578.38 | 15,266,911.26 | 449,581.03 | 172,556,579.92 |
| Administrativeexpense | 367,421,172.07 | 14,629,856.34 | 11,286,215.13 | 427,071,045.26 | 240,768,795.97 | 1,061,177,084.77 | 40,794,239.92 | 1,086,063.41 | 406,463,193.56 | 1,509,520,581.66 |
| R&Dexpenses | 119,506,939.75 | - | - | 4,346,404.54 | - | 123,853,344.29 | - | - | - | 123,853,344.29 |
| Financialexpenses | 186,473,966.41 | 3,557,959.06 | -1,031,714.93 | 140,511,147.67 | 343,853,815.52 | 673,365,173.73 | 27,521,546.75 | 43,602,750.59 | 1,191,780,266.46 | 1,936,269,737.53 |
| Otherincome | 74,072,845.73 | 1,224,999.96 | 136,812.67 | 53,835,650.36 | - | 129,270,308.72 | 22,545,823.25 | 6,361.40 | 10,278,619.73 | 162,101,113.10 |
| Investmentincome | 160,825,470.54 | 2,569,882,989.42 | 415,798,097.77 | 772,742,553.30 | 439,240,848.69 | 4,358,489,959.72 | 23,454,651.74 | 237,229,143.96 | - | 4,619,173,755.42 |
| Gainsfromchangesinfairvalue(lossismarkedwith"-") | 10,933.07 | 154,574,350.85 | 297,972,325.74 | -21,212,710.87 | -364,861,632.31 | 66,483,266.48 | - | - | - | 66,483,266.48 |
| Impairmentgainsofcredit(lossismarkedwith"-") | -2,704,122.79 | - | 96,054.01 | -47,117,070.21 | -510,363.77 | -50,235,502.76 | -13,907.01 | - | - | -50,249,409.77 |
| Impairmentgainsofassets(lossismarkedwith"-") | 25,051.16 | - | - | - | - | 25,051.16 | - | - | - | 25,051.16 |
| Gainsfromdisposalofassets(lossismarkedwith"-") | 4,172,962,308.96 | - | 13,069.99 | 620,155,605.55 | 764,083.94 | 4,793,895,068.44 | -3,047.02 | - | 670,761.37 | 4,794,562,782.79 |
| Operatingprofit(lossismarkedwith"-") | 5,892,103,224.72 | 2,706,592,444.00 | 713,201,903.09 | 1,370,264,264.80 | 972,340,665.25 | 11,654,502,501.86 | 138,441,518.49 | 119,604,459.41 | -1,587,743,659.95 | 10,324,804,819.81 |
-171-
(XIV)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)Segmentfinancialinformation-continuedSegmentfinancialinformationfor2019isasfollows:-continued
| Item | Portsoperation | Bondedlogisticsoperation | Others | Unallocatedamount | Total | |||||
| MainlandChina,HongKongandTaiwan | Otherlocations | Sub-total | ||||||||
| PearlRiverDelta | YangtzeRiverDelta | BohaiRim | Others | |||||||
| Non-operatingincome | 15,167,367.31 | - | 920,329.94 | 19,125,548.43 | 512,078,201.39 | 547,291,447.07 | 458,318.63 | 1,086,658.83 | 4,266,935.88 | 553,103,360.41 |
| Non-operatingexpenses | 13,328,509.27 | 4,069.14 | 8,922.44 | 25,023,662.84 | 14,345,696.95 | 52,710,860.64 | 57,151.76 | 50,000.00 | 17,634,000.00 | 70,452,012.40 |
| Grossprofit(lossismarkedwith"-") | 5,893,942,082.76 | 2,706,588,374.86 | 714,113,310.59 | 1,364,366,150.39 | 1,470,073,169.69 | 12,149,083,088.29 | 138,842,685.36 | 120,641,118.24 | -1,601,110,724.07 | 10,807,456,167.82 |
| Incometaxexpenses | 1,922,260,744.88 | 134,247,591.99 | 91,985,992.66 | 224,620,829.53 | 92,650,917.92 | 2,465,766,076.98 | 31,835,647.68 | 13,078,333.18 | 129,858,836.78 | 2,640,538,894.62 |
| Netprofit(lossismarkedwith"-") | 3,971,681,337.88 | 2,572,340,782.87 | 622,127,317.93 | 1,139,745,320.86 | 1,377,422,251.77 | 9,683,317,011.31 | 107,007,037.68 | 107,562,785.06 | -1,730,969,560.85 | 8,166,917,273.20 |
| Segmentassets | 29,586,087,542.86 | 26,729,937,567.14 | 7,140,466,913.27 | 26,167,362,772.28 | 43,499,664,358.95 | 133,123,519,154.50 | 3,343,718,019.81 | 17,831,744,436.63 | 2,397,936,234.93 | 156,696,917,845.87 |
| Totalassetsinthefinancialstatements | 156,696,917,845.87 | |||||||||
| Segmentliabilities | 10,648,908,871.15 | 700,175,249.44 | 140,580,616.21 | 9,017,491,838.33 | 11,995,283,584.80 | 32,502,440,159.93 | 757,665,748.51 | 1,010,340,736.41 | 27,436,263,588.78 | 61,706,710,233.63 |
| Totalliabilitiesinthefinancialstatements | 61,706,710,233.63 | |||||||||
| Supplementaryinformation: | ||||||||||
| DepreciationandAmortization | 900,796,294.39 | - | 2,052,884.92 | 878,442,775.96 | 796,377,578.73 | 2,577,669,534.00 | 92,199,834.15 | 174,521,673.45 | 20,134,304.85 | 2,864,525,346.45 |
| Interestincome | 42,470,222.92 | 257,234.76 | 1,203,144.96 | 70,701,815.50 | 83,372,904.82 | 198,005,322.96 | 1,266,345.18 | 1,469,124.45 | 51,319,225.99 | 252,060,018.58 |
| Interestexpense | 183,085,034.75 | 2,926,671.54 | - | 203,657,696.95 | 392,724,564.47 | 782,393,967.71 | 28,245,233.91 | 38,016,163.44 | 1,241,182,229.48 | 2,089,837,594.54 |
| Investmentincomefromlong-termequityinvestmentunderequitymethod | 129,628,862.78 | 2,530,919,159.03 | 347,650,565.12 | 19,727,531.90 | 439,240,848.69 | 3,467,166,967.52 | 23,454,651.74 | 237,229,143.96 | - | 3,727,850,763.22 |
| Long-termequityinvestmentunderequitymethod | 2,592,565,388.68 | 24,772,038,158.14 | 6,078,963,750.12 | 640,212,907.12 | 11,061,215,279.18 | 45,144,995,483.24 | 768,727,807.74 | 12,002,816,092.28 | - | 57,916,539,383.26 |
| Non-currentassetsotherthanlong-termequityinvestment | 21,153,911,773.00 | 294,462,264.01 | 27,181,862.66 | 21,955,658,532.67 | 28,203,528,560.52 | 71,634,742,992.86 | 2,302,277,585.20 | 5,405,248,897.19 | 455,073,380.68 | 79,797,342,855.93 |
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(XIV)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)Segmentfinancialinformation-continuedTheGroup'srevenuebygeographicalareasofoperationsandinformationaboutitsnon-currentassetsotherthanfinancialinstrumentsanddeferredtaxassetspresentedbasedonthegeographicalareasinwhichtheassetsarelocatedasfollows:
| Revenuefromexternaltransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| MainlandChina,HongKongandTaiwan | 9,117,570,900.78 | 8,872,027,132.24 |
| PearlRiverDelta | 5,522,529,825.59 | 5,629,472,123.72 |
| YangtzeRiverDelta | 73,413,401.10 | - |
| BohaiRim | 187,910,723.37 | 194,445,939.20 |
| Others | 3,333,716,950.72 | 3,048,109,069.32 |
| Otherlocations | 3,500,959,095.24 | 3,251,802,291.50 |
| Total | 12,618,529,996.02 | 12,123,829,423.74 |
| Totalnon-currentassets | Closingbalance | Openingbalance |
| MainlandChina,HongKongandTaiwan | 105,086,211,442.75 | 96,489,027,270.44 |
| PearlRiverDelta | 45,433,724,023.01 | 43,196,515,110.55 |
| YangtzeRiverDelta | 32,716,973,145.44 | 25,066,500,422.16 |
| BohaiRim | 6,903,596,351.63 | 6,686,470,964.43 |
| Others | 20,031,917,922.67 | 21,539,540,773.30 |
| Otherlocations | 39,164,278,189.74 | 41,224,854,968.75 |
| Total | 144,250,489,632.49 | 137,713,882,239.19 |
(3)Degreeofrelianceonmajorcustomers
ThetotaloperatingincomederivedfromthetopfiveclientsoftheGroupisRMB3,455,856,420.54,accountingfor
27.39%oftheGroup'stotaloperatingincome.(XV)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS
1.Otherreceivables
1.1Summaryofotherreceivables
| Item | Closingbalance | Openingbalance |
| Interestreceivable | - | - |
| Dividendsreceivable | 311,297,793.86 | 207,259,421.40 |
| Otherreceivables | 791,414,958.18 | 598,275,341.87 |
| Total | 1,102,712,752.04 | 805,534,763.27 |
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(XV)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued
1.Otherreceivables-continued
1.2Dividendsreceivable
(1)Disclosureofdividendsreceivable
| Companyname | Closingbalance | Openingbalance |
| DongguanShenchiwanPortAffairsCo.,Ltd. | - | 103,355,370.74 |
| DongguanShenchiwanWharfCo.,Ltd. | 147,233,909.98 | 88,196,930.66 |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | 15,707,120.00 | 15,707,120.00 |
| ChiwanWharfHoldings(HongKong)Ltd. | 147,680,363.88 | - |
| JiangsuExpresswayCompanyLimited | 460,000.00 | - |
| ShenzhenPetrochemicalIndustry(Group)Co.,Ltd. | 216,400.00 | - |
| Total | 311,297,793.86 | 207,259,421.40 |
| Less:Provisionforcreditloss | - | - |
| Carryingamount | 311,297,793.86 | 207,259,421.40 |
(2)Significantdividendsreceivablewithagingover1year
| Item | Closingbalance | Reasonforoutstanding | Impairedornot |
| DongguanShenchiwanWharfCo.,Ltd. | 147,233,909.98 | Inprocessingandexpectedtobereceivedin2021 | No |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | 15,707,120.00 | Inprocessingandexpectedtobereceivedin2021 | No. |
| Total | 162,941,029.98 |
1.3Otherreceivables
(1)Disclosureofotherreceivablesbyaging
| Aging | Closingbalance | ||
| Otherreceivables | Provisionforcreditloss | Proportionofprovision(%) | |
| Within1year | 463,637,726.23 | - | - |
| 1to2years | 327,777,231.95 | - | - |
| 2to3years | - | - | - |
| Over3years | 383,456.60 | 383,456.60 | 100.00 |
| Total | 791,798,414.78 | 383,456.60 | |
(2)Provisionforcreditlossofotherreceivables
AspartoftheCompany'screditriskmanagement,theCompanyperformsinternalcreditratingoncustomers,anddeterminestheexpectedlossratioofotherreceivablesundereachcreditrating.Suchexpectedaveragelossratioisbasedonhistoricalactualimpairmentandtakingintoconsiderationofcurrentandexpectedfutureeconomicconditions.
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(XV)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued
1.Otherreceivables-continued
1.3Otherreceivables-continued
(2)Provisionforcreditlossofotherreceivables-continuedAt31December2020,thecreditriskandexpectedcreditlossofotherreceivablesbycategoriesofcustomersareasfollows:
| Creditrating | Expectedcreditlossratio(%) | Closingbalance | Openingbalance | ||||||
| 12-monthECL | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | Total | 12-monthECL | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | Total | ||
| A | 0.00-0.10 | 791,414,958.18 | - | - | 791,414,958.18 | 598,275,341.87 | - | - | 598,275,341.87 |
| B | 0.10-0.30 | - | - | - | - | - | - | - | - |
| C | 0.30-50.00 | - | - | - | - | - | - | - | - |
| D | 50.00-100.00 | - | - | 383,456.60 | 383,456.60 | - | - | 383,456.60 | 383,456.60 |
| Carryingamount | 791,414,958.18 | - | 383,456.60 | 791,798,414.78 | 598,275,341.87 | - | 383,456.60 | 598,658,798.47 | |
| Provisionforcreditloss | - | - | 383,456.60 | 383,456.60 | - | - | 383,456.60 | 383,456.60 | |
| Bookvalue | 791,414,958.18 | - | - | 791,414,958.18 | 598,275,341.87 | - | - | 598,275,341.87 | |
(3)Changesinprovisionforcreditlossofotherreceivables
| Item | StageI | StageII | StageIII | Total |
| 12-monthECL | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | ||
| Balanceat1January2020 | - | - | 383,456.60 | 383,456.60 |
| Carryingamountofotherreceivablesat1January2020 | ||||
| --transfertostageII | - | - | - | - |
| --transfertostageIII | - | - | - | - |
| --transferbacktostageII | - | - | - | - |
| --transferbacktostageI | - | - | - | - |
| Provisionfortheyear | - | - | - | - |
| Reversal | - | - | - | - |
| Transferoutduetoderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | - | - |
| Balanceat31December2020 | - | - | 383,456.60 | 383,456.60 |
(4)Otherreceivablesbynature
| Item | Closingbalance | Openingbalance |
| Amountsduefromrelatedparties | 785,752,325.78 | 571,663,096.21 |
| Advances | 3,862,191.69 | 26,283,930.19 |
| Deposits | - | - |
| Others | 2,183,897.31 | 711,772.07 |
| Total | 791,798,414.78 | 598,658,798.47 |
| Less:Provisionforcreditloss | 383,456.60 | 383,456.60 |
| Bookvalue | 791,414,958.18 | 598,275,341.87 |
(5)Thereisnootherreceivableswrite-offduringthisyear.
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(XV)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued
1.Otherreceivables-continued
(6)Thetopfivebalancesofotherreceivablesclassifiedbydebtor
| Companyname | Nature | Closingbalance | Aging | Proportionoftheamounttotheclosingbalanceofotherreceivables(%) | Closingbalanceofprovisionforcreditloss |
| ShenzhenHaixingHarborDevelopmentCo.,Ltd. | Loantorelatedparties | 785,752,325.78 | Within2years | 99.24 | - |
| ChinaMerchants(Liaoning)PortDevelopmentCo.,Ltd. | Advancepaymentsforaccountcurrent | 2,000,000.00 | Within1year | 0.25 | - |
| ShenzhenShekouLocalTaxationBureau | Other | 711,772.07 | Above3years | 0.09 | 383,456.60 |
| Broadford(Shenzhen)PortDevelopmentCo.,Ltd. | Advancepaymentsforaccountcurrent | 89,862.49 | Within1year | 0.01 | - |
| ChinaMerchantsApartmentDevelopment(Shenzhen)Co.,Ltd. | Advancepaymentsforaccountcurrent | 14,068.00 | Within1year | - | - |
| Total | 788,568,028.34 | 99.59 | 383,456.60 |
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(XV)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued
2.Long-termequityinvestments
| Investee | 1/1/2020 | Changesfortheyear | 31/12/2020 | Closingbalanceofimpairmentprovision | |||||||
| Increase | Decrease | Investmentincomeunderequitymethod | Reconcilingitemsfromothercomprehensiveincome | Otherequitymovements | Announceddistributionofcashdividendsorprofit | Impairmentprovision | Others | ||||
| I.Subsidiary | |||||||||||
| ShenzhenChiwanInternationalFreightAgencyCo.,Ltd. | 5,500,000.00 | - | - | - | - | - | - | - | - | 5,500,000.00 | - |
| ShenzhenChiwanHarborContainerCo.Ltd. | 250,920,000.00 | - | - | - | - | - | - | - | - | 250,920,000.00 | - |
| ShenzhenChiwanPortDevelopmentCo.,Ltd. | 206,283,811.09 | - | - | - | - | - | - | - | - | 206,283,811.09 | - |
| CWHK | 1,070,000.00 | - | - | - | - | - | - | - | - | 1,070,000.00 | - |
| ShenzhenChiwanTugboatCo.,Ltd. | 24,000,000.00 | - | - | - | - | - | - | - | - | 24,000,000.00 | - |
| ChiwanContainerTerminalCo.,Ltd. | 421,023,199.85 | - | - | - | - | - | - | - | - | 421,023,199.85 | - |
| DongguanShenchiwanPortAffairsCo.,Ltd. | 186,525,000.00 | - | - | - | - | - | - | - | - | 186,525,000.00 | - |
| DongguanShenchiwanWharfCo.,Ltd. | 175,000,000.00 | - | - | - | - | - | - | - | - | 175,000,000.00 | - |
| ChiwanShipping(HongKong)Limited | 1,051,789.43 | - | - | - | - | - | - | - | - | 1,051,789.43 | - |
| CMPort(Note1) | 27,286,943,610.42 | 985,995,529.57 | - | - | - | - | - | - | - | 28,272,939,139.99 | - |
| CMPort(Zhoushan)RoRoLogisticsCo.,Ltd. | 149,709,800.00 | - | - | - | - | - | - | - | - | 149,709,800.00 | - |
| Zhanjiangport(Note2) | 371,530,912.93 | 3,010,294,615.59 | - | - | - | - | - | - | - | 3,381,825,528.52 | - |
| Subtotal | 29,079,558,123.72 | 3,996,290,145.16 | - | - | - | - | - | - | - | 33,075,848,268.88 | - |
| II.Associate | |||||||||||
| InternationalInformationTechnologyCompany | 20,643,611.18 | - | - | 3,190,099.79 | - | - | - | - | - | 23,833,710.97 | - |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | 365,855,724.95 | - | - | 18,791,432.65 | - | - | - | - | - | 384,647,157.60 | - |
| ChinaMerchantsNortheastAsiaDevelopment&InvestmentCompany(Note3) | - | 1,000,000,000.00 | - | 7,786,285.71 | - | - | - | - | - | 1,007,786,285.71 | - |
| NingboZhoushanPortCompanyLimited(Note3) | - | - | - | - | - | - | - | - | 1,500,464,520.87 | 1,500,464,520.87 | - |
| Subtotal | 386,499,336.13 | 1,000,000,000.00 | - | 29,767,818.15 | - | - | - | - | 1,500,464,520.87 | 2,916,731,675.15 | - |
| III.Jointventure | |||||||||||
| YantaiPortGroupLaizhouPortCo.,Ltd. | 792,062,228.58 | - | - | 24,750,032.44 | - | - | -33,980,174.52 | - | - | 782,832,086.50 | - |
| ChinaMerchantsAntongLogisticsManagementCompany | 8,256,893.80 | - | - | 846,094.22 | - | - | - | - | - | 9,102,988.02 | - |
| FujianZhaohangLogisticsManagementPartnership(LimitedPartnership)(Note3) | - | 450,000,000.00 | - | 2,283,105.00 | - | - | - | - | - | 452,283,105.00 | - |
| Subtotal | 800,319,122.38 | 450,000,000.00 | - | 27,879,231.66 | - | - | -33,980,174.52 | - | - | 1,244,218,179.52 | - |
| Total | 30,266,376,582.23 | 5,446,290,145.16 | - | 57,647,049.81 | - | - | -33,980,174.52 | - | 1,500,464,520.87 | 37,236,798,123.55 | - |
Note1:DetailsaresetoutinNote(VII)1.Note2:In2020,theCompanyacquired27.35%ofthesharesofZhanjiangPort,whichwaspreviouslyheldbyitssubsidiaryChiwanWharfHoldings(HongKong)Ltd.Note3:DetailsaresetoutinNote(V)13.
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(XV)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-
continued
3.Operatingincomeandoperatingcosts
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principaloperating | - | - | 75,207,466.30 | 75,438,994.71 |
| Otheroperating | 6,653,002.66 | 2,265,959.64 | 16,835,131.75 | 645,029.02 |
| Total | 6,653,002.66 | 2,265,959.64 | 92,042,598.05 | 76,084,023.73 |
4.Investmentincome
(1)Detailsofinvestmentincome
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Incomefromlong-termequityinvestmentsundercostmethod | 2,871,566,529.89 | 1,221,470,436.60 |
| Long-termequityinvestmentsincomeunderequitymethod | 57,647,049.81 | 70,092,131.84 |
| Incomefromotherequityinstrumentsinvestments | 8,567,900.00 | 10,822,585.00 |
| Incomefromheld-for-tradingfinancialassets | 13,161,408.95 | - |
| Incomefromdebtinvestments | 24,700,958.91 | 3,837,808.22 |
| Total | 2,975,643,847.56 | 1,306,222,961.66 |
(2)Incomefromlong-termequityinvestmentsundercostmethod
| Investee | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Reasonforchangescomparingwithprioryear |
| CWHK | 1,347,680,363.88 | - | Changesinprofitdistributionofinvestee |
| CMPort | 982,379,582.35 | 1,116,334,395.76 | Changesinprofitdistributionofinvestee |
| ChiwanContainerTerminalCo.,Ltd. | 275,313,936.56 | 105,136,040.84 | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanHarborContainerCo.Ltd. | 121,071,884.15 | - | Changesinprofitdistributionofinvestee |
| DongguanShenchiwanPortAffairsCo.,Ltd. | 60,234,278.79 | - | Changesinprofitdistributionofinvestee |
| DongguanShenchiwanWharfCo.,Ltd. | 59,036,979.32 | - | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanTugboatCo.,Ltd. | 25,604,356.23 | - | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanInternationalFreightAgencyCo.,Ltd. | 245,148.61 | - | Changesinprofitdistributionofinvestee |
| Total | 2,871,566,529.89 | 1,221,470,436.60 |
CHINAMERCHANTSPORTGROUPCO.,LTD.NOTESTOFINANCIALSTATEMENTSFORTHEYEARENDED31DECEMBER2020
1.BREAKDOWNOFNON-RECURRINGPROFITORLOSS
| Item | Amount | Remarks |
| Lossesondisposalofnon-currentassets | 1,480,572,929.90 | |
| Taxrefundsorreductionswithultraviresapprovalorwithoutofficialapprovaldocuments | - | |
| Governmentgrantsrecognizedinprofitorloss(exceptforgrantsthatarecloselyrelatedtotheCompany'sbusinessandareinamountsandquantitiesfixedinaccordancewiththenationalstandard) | 238,216,977.76 | |
| Moneylendingincomeearnedfromnon-financialinstitutionsinprofitorloss | 232,906,880.87 | |
| Theexcessofattributablefairvalueofidentifiablenetassetsovertheconsiderationpaidforsubsidiaries,associatesandjointventures | - | |
| Gainsorlossesonexchangeofnon-monetaryassets | - | |
| Gainsorlossesonentrustedinvestmentsorassetsmanagement | - | |
| Provisionofimpairmentlossesforeachassetduetoforcemajeure,e.g.naturaldisasters | - | |
| Gainsorlossesondebtrestructuring | - | |
| Businessrestructuringexpenses,e.g.,expenditureforlayoffofemployees,integrationexpenses,etc. | - | |
| Gainsorlossesrelatingtotheunfairportionintransactionswithunfairtransactionprice | - | |
| Netprofitorlossofsubsidiariesrecognizedasaresultofbusinesscombinationofenterprisesundercommoncontrolfromthebeginningoftheperioduptothebusinesscombinationdate | - | |
| Gainsorlossesarisingfromcontingenciesotherthanthoserelatedtonormaloperatingbusiness | - | |
| Gainsfromchangesoffairvalueofheld-for-tradingfinancialassets,derivativefinancialassets,othernon-currentfinancialassets,held-for-tradingfinancialliabilities,derivativefinancialliabilitiesotherthaneffectivehedgingoperationrelatingtotheCompany'snormaloperations,andtheinvestmentincomefromdisposaloftheaboveheld-for-tradingfinancialassets/financialliabilitiesandotherdebtinvestments | -409,658,173.58 | |
| Reversalofprovisionforaccountsreceivablethataretestedforcreditlossindividually | 46,709,066.77 | |
| Gainsorlossesonentrustedloans | - | |
| Gainsorlossesonchangesinthefairvalueofinvestmentpropertiesthataresubsequentlymeasuredusingthefairvaluemodel | - | |
| Effectsonprofitorlossofone-offadjustmenttoprofitorlossfortheperiodaccordingtotherequirementsbytaxlawsandaccountinglawsandregulations | - | |
| Custodianfeesearnedfromentrustedoperation | 1,886,792.45 | |
| Othernon-operatingincomeorexpensesotherthanabove | -42,615,710.20 | |
| Otherprofitorlossthatmeetsthedefinitionofnon-recurringprofitorloss(note) | 753,988,749.80 | |
| Taxeffects | -241,651,237.66 | |
| Effectsofminorityinterest(aftertax) | -1,257,863,869.71 | |
| Total | 802,492,406.40 |
Note:Thismainlyrepresentsthegainsfromremeasurementofpreviouslyheldequityatfairvalueuponthe
Group'sacquisitionofNingboDaxie.
CHINAMERCHANTSPORTGROUPCO.,LTD.NOTESTOFINANCIALSTATEMENTSFORTHEYEARENDED31DECEMBER2020
2.RETURNONNETASSETSANDEARNINGSPERSHARE("EPS")
ThereturnonnetassetsandEPShavebeenpreparedbyShenzhenChiwanWharfCo.,Ltd.inaccordancewithInformationDisclosureandPresentationRulesforCompaniesMakingPublicOfferingNo.9-CalculationandDisclosureofReturnonNetAssetsandEarningsperShare(revisedin2010)issuedbyChinaSecuritiesRegulatoryCommission.
| Item | Weightedaveragereturnonnetassets(%) | EPS | |
| BasicEPS | DilutedEPS | ||
| Netprofitattributabletoordinaryshareholders | 5.6628 | 1.0744 | 1.0744 |
| Netprofitattributabletoordinaryshareholdersafterdeductingnon-recurringprofitorloss | 3.4625 | 0.6569 | 0.6569 |