CHINAMERCHANTSPORTGROUPCO.,LTD.
INTERIMREPORT2022
DateofDisclosure:31August2022
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagersofChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.WangXiufeng,theCompany’slegalrepresentative,TuXiaoping,theCompany’sChiefFinancialOfficer,andHuangShengchao,theperson-in-chargeoftheaccountingorganherebyguaranteethatthefinancialstatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyforward-lookingstatementssuchasfutureplansordevelopmentstrategiesmentionedhereinshallnotbeconsideredastheCompany’spromisestoinvestors.Andinvestorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.RisksfacedbytheCompanyandcountermeasureshavebeenexplainedinItemXin“PartIIIManagementDiscussionandAnalysis”herein,whichinvestorsarekindlyremindedtopayattentionto.SecuritiesTimes,ChinaSecuritiesJournal,ShanghaiSecuritiesNews,TaKungPao(HK)andwww.cninfo.com.cnhavebeendesignatedbytheCompanyforinformationdisclosure.AndallinformationabouttheCompanyshallbesubjecttowhat’sdisclosedontheaforesaidmedia.Investorsarekindlyremindedtopayattentiontothesemedia.TheCompanyisnotsubjecttoanyindustry-specificdisclosurerequirements.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 1
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 10
PartIVCorporateGovernance ...... 35
PartVEnvironmentalandSocialResponsibility ...... 37
PartVISignificantEvents ...... 51
PartVIIShareChangesandShareholderInformation ...... 69
PartVIIIPreferenceShares ...... 74
PartIXBonds ...... 75
PartXFinancialStatements ...... 79
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
DocumentsAvailableforReferenceI.FinancialStatementscarryingthesignaturesandstampsoftheCompanyPrincipal,theChiefFinancialOfficerandthepersoninchargeofaccountingfirm;II.Originalcopiesofalldocumentsandtheannouncementsthereofdisclosedinthereportingperiodon“SecuritiesTimes”,“ShanghaiSecuritiesNews”and“TaKungPao”.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Definitions
Term
| Term | Definition |
| The“Company”,“CMPort”or“we” | ChinaMerchantsPortGroupCo.,Ltd.,formerlyknownas“ShenzhenChiwanWharfHoldingsLimited” |
| CMG | ChinaMerchantsGroupCo.,Limited |
| CMPortHoldings | ChinaMerchantsPortHoldingsCompanyLimited(00144.HK) |
| CSRC | ChinaSecuritiesRegulationCommission |
| CMIT | ChinaMerchantsInternationalTechnologyCo.,Ltd., |
| DongguanMachong | DongguanChiwanPortServiceCo.,Ltd. |
| ShantouPort | ShantouCMPortGroupCo.,Ltd. |
| ZhanjiangPort | ZhanjiangPort(Group)Co.,Ltd. |
| ShundeNewPort | GuangdongYidePortLimited |
| ZhangzhouPort | ZhangzhouChinaMerchantsPortCo.,Ltd. |
| CMICT | NingboDaxieChinaMerchantsInternationalContainerTerminalCo.,Ltd. |
| CICT | ColomboInternationalContainerTerminalsLtd. |
| HIPG | HambantotaInternationalPortGroup |
| LCT | LomeContainerTerminalLtd. |
| TCP | TCPParticipa??esS.A |
| TEU | TwentyFootEquivalentUnit |
| CMePort | Thewharfe-commerceplatform,i.e.theunifiedcustomerserviceplatform |
| HaixingHarbor | ShenzhenHaixingHarborDevelopmentCo.,Ltd. |
| YingkouPort | YingkouPortCo.,Ltd. |
| LiaoningPort/DalianPort | LiaoningPortCo.,Ltd.,formerlyknownasDalianPort(PDA)CompanyLimited |
| SASACoftheStateCouncil | State-OwnedAssetsSupervisionandAdministrationCommissionoftheStateCouncil |
| SIPG | ShanghaiInternationalPort(Group)Co.,Ltd. |
| TianjinPortContainerTerminal | TianjinPortContainerTerminalCo.,Ltd. |
| QQCTU | QingdaoQianwanUnitedContainerTerminalCo.,Ltd. |
| CMCS | ChinaMerchantsContainerServicesLimited |
| ModernTerminals | ModernTerminalsLimited |
| TaiwanKaoMingContainer | KaoMingContainerTerminalCorp. |
| TL | TerminalLinkS.A.S. |
| Kumport | KumportLimanHizmetleriveLojistikSanayiveTicaretAnonimSirketi |
| PDSA | PortdeDjiboutiS.A. |
| TICT | Tin-CanIslandContainerTerminalLtd. |
| QQTU | QingdaoQianwanUnitedTerminalCo.,Ltd. |
| QingdaoDongjiakou | QingdaoPortDongjiakouOreTerminalCo.,Ltd. |
| LaizhouPort | YantaiPortGroupLaizhouPortCo.LTD |
| XiamenPort | ZhangzhouChinaMerchantsXiamenPortAffairsCo.,Ltd. |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
NingboZhoushan
| NingboZhoushan | NingboZhoushanPortCompanyLimited |
| Thecninfowebsite | www.cninfo.com.cn |
| SZSE | ShenzhenStockExchange |
| The“ArticlesofAssociation” | TheArticlesofAssociationofChinaMerchantsPortGroupCo.,Ltd. |
| RMBRMB’0,000RMB’00,000,000 | ExpressedintheChinesecurrencyofRenminbiExpressedintensofthousandsofRenminbiExpressedinhundredsofmillionsofRenminbi(unlessotherwisespecified) |
Note:InthisReport,certaintotalnumbersmaynotbeexactlyequaltothesummationoftheirsub-itemnumbersasaresultofroundoff.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
Stockname
| Stockname | CMPortGroup/CMPortGroupB | Stockcode | 001872/201872 |
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 招商局港口集团股份有限公司 | ||
| Abbr.(ifany) | 招商港口 | ||
| CompanynameinEnglish(ifany) | ChinaMerchantsPortGroupCo.,Ltd. | ||
| Abbr.(ifany) | CMPort | ||
| Legalrepresentative | WangXiufeng | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | LiYubin | 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 |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2021AnnualReport.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable√NotapplicableThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfordisclosingtheCompany’speriodicreportsandtheplaceforlodgingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2021AnnualReport.
3.OtherRelevantInformationIndicatebytickmarkwhetheranychangeoccurredtotheotherrelevantinformationintheReportingPeriod.
□Applicable√NotapplicableIVKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.?Yes√No
H12022
| H12022 | H12021 | Change(%) | |
| Operatingrevenue(RMB) | 8,150,462,367.19 | 7,339,942,862.26 | 11.04% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 1,981,861,324.62 | 1,677,035,346.17 | 18.18% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 1,920,549,245.60 | 1,644,696,060.97 | 16.77% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 3,221,251,177.09 | 2,934,960,407.96 | 9.75% |
| Basicearningspershare(RMB/share) | 1.03 | 0.87 | 18.39% |
| Dilutedearningsper | 1.03 | 0.87 | 18.39% |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
share(RMB/share)
| share(RMB/share) | |||
| Weightedaveragereturnonequity(%) | 4.88% | 4.43% | 0.45% |
| 30June2022 | 31December2021 | Change(%) | |
| Totalassets(RMB) | 182,438,574,161.08 | 175,984,101,168.66 | 3.67% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 41,214,899,867.01 | 39,801,188,662.13 | 3.55% |
ThetotalsharecapitalattheendofthelasttradingsessionbeforethedisclosureofthisReport:
| TotalsharecapitalattheendofthelasttradingsessionbeforethedisclosureofthisReport(share) | 1,922,365,124 |
Fullydilutedearningspersharebasedonthelatesttotalsharecapitalabove:
| Fullydilutedearningspersharebasedonthelatesttotalsharecapitalabove(RMB/share) | 1.0309 |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
3.ReasonsforAccountingDataDifferencesbetweenDomesticsandForeignAccountingPrinciple
□Applicable√NotapplicableVIExceptionalGainsandLosses
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowance | -1,794,945.06 | - |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
write-offs)
| write-offs) | ||
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 73,174,992.52 | - |
| Capitaloccupationchargesonnon-financialenterprisesthatarechargedtocurrentprofitorloss | 112,701,958.95 | - |
| Gainorlossonfair-valuechangesinheld-for-tradingfinancialassetsandliabilities&incomefromdisposalofheld-for-tradingfinancialassetsandliabilitiesandavailable-for-salefinancialassets(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | -38,026,112.58 | - |
| Reversedportionsofimpairmentallowancesforreceivableswhicharetestedindividuallyforimpairment | 3,794,522.98 | - |
| Non-operatingincomeandexpenseotherthantheabove | 207,606.81 | - |
| Less:Incometaxeffects | 21,936,823.86 | - |
| Non-controllinginterestseffects(netoftax) | 66,809,120.74 | - |
| Total | 61,312,079.02 |
ExplanationofwhytheCompanyreclassifiesrecurrentgain/lossasanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartIIIManagementDiscussionandAnalysisI.PrincipalactivitiesoftheCompanyduringthereportingperiod
1、PrincipalactivitiesandbusinessmodelsTheCompanyisprincipallyengagedinthecargohandlingandwarehousing,bondedlogisticsoperationsandancillaryport-relatedservices.Thecargohandlingandwarehousingbusinessincludescontainersandbulkcargos,withacomprehensiveportnetworkacrossthehublocationsalongcoastalChina,andtheterminalswhichtheCompanyinvestedinorinvestedinandmanagedarelocatedinhublocationsacrossHongKong,Taiwan,Shenzhen,Ningbo,Shanghai,Qingdao,Tianjin,Dalian,Zhangzhou,Zhanjiang,andShantou,aswellasinAsia,Africa,Europe,Oceania,SouthandNorthAmerica,amongstothers.Thebondedlogisticsoperationsmainlyincludetheprovisionofwarehousingleasing,customsclearance,divisionormergerofcargoes,documentationandotherservicesforcustomersinShenzhenQianhaiwanBondedPortZone,QingdaoQianwanBondedPortZoneandTianjinDongjiangBondedPortZone.Theancillaryport-relatedservicesmainlyincludesmartportsolutions,anopenplatformforsmartports,smartporttechnologyoperationandotherportinformationtechnologybusinesses,aswellasportengineeringsupervisionandmanagementbusiness.ThemainbusinesssegmentsoftheCompanyareasfollows:
Businesssegments
| Businesssegments | Applicationsareas |
| Cargohandlingandwarehousing | Containerhandlingandwarehousing:theCompanyprovidesshipberthing,loadingandunloadingservicestoshipcompanies,offerscontainerstorageservicetoshipcompaniesandcargoownersandprovidesoverheadboxservicestotractorcompanies.TheCompanyalsoengagesinthebusinessesofdivisionormergerofcargoesincontainers,containerleasingandcontainermaintenance;Bulkcargohandlingandwarehousing:theCompanyisengagedinbulkcargohandlingandtransportationinportzones,aswellasstorageservicesinyards.Themajortypesofcargoeshandledincludefood,steel,woodsandsandstones. |
| Bondedlogisticsoperations | TheCompanyprovidesvariousservicesforclients(includinglogisticscompanies,tradingcompaniesorcargoowners),forexample,warehouse/yardleasing,loadingandunloadinginwarehouses/yards,customsclearanceanddivisionormergerofcargoesatterminals.Italsoprovidesdocumentationservicesfortractorsarrivingorleavingthebondedlogisticsparks. |
| Ancillaryport-relatedservices | Theancillaryport-relatedservicesmainlyincludesmartportsolutions,anopenplatformforsmartports,smartporttechnologyoperationandotherportinformationtechnologybusinesses,aswellasportengineeringsupervisionandmanagementbusiness. |
2.DevelopmentstageandcyclicalcharacteristicoftheindustryinwhichtheCompanyoperatesanditsindustrypositionduringthereportingperiod
(1)ExternaleconomicenvironmentInthefirsthalfof2022,factorssuchasrepeatedglobalCOVID-19outbreaks,frequent"blackswan"eventssuchastheRussia-Ukraineconflict,decliningconsumerdemandunderthepressureof
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
global"stagflation",andincreasingdebtcrisesinemergingmarketshaveincreasedtheuncertaintyofglobalmacroeconomicsandtrades.Thepaceofglobaleconomicrecoveryhasbeenaffected.Theincreasinglyseveregeopoliticalriskshaveacceleratedtherestructuringoftheglobalsupplychainandindustrialchain,hinderingthegrowthoftradeincommoditiesandservices.Accordingtothe“WorldEconomicOutlook”reportpublishedbytheInternationalMonetaryFund(“IMF”)inJuly2022,theglobaleconomyin2022wasexpectedtoincreaseby3.2％,representingadecreaseof2.9percentagepointsyear-on-year.Forecastsfordevelopedeconomieshavebeenreviseddownandareexpectedtogrowby2.5%,representingadecreaseof2.7percentagepointsyear-on-year.Thegrowthoutlookforemergingmarketsanddevelopingeconomiesisbleak,andisexpectedtogrowby3.6%,representingadecreaseof3.2percentagepointsyear-on-year.Besides,accordingtotheforecastoftheWorldTradeOrganizationinApril2022,duetothedelayedoveralleconomicrecoveryresultingfromthemediumandlong-termimpactoftheRussia-Ukraineconflict,globaltradewouldincreaseby3%in2022,representingadecreaseof1.7percentagepointscomparedwiththepreviousforecast.Inthefirsthalfof2022,China'smacro-economywillgenerallyachievesteadygrowth.AccordingtotheNationalBureauofStatisticsofChina,China’sGDPwasRMB56.26trillioninthefirsthalfof2022,representinganincreaseof2.5%year-on-yearatconstantprices.Undertheincreasinglycomplexandseveresituationofforeigntradedevelopment,Chinainsistsonmaintainingstabilityandseekingprogresswhilemaintainingstability.Theimplementationofapackageofpoliciesandmeasurestostabilizetheeconomyintroducedthisyearhasachievedinitialresults.Theresumptionofworkandproductionofenterpriseshasbeenfullyaccelerated,andforeigntradeisexpectedtocontinuetogrowsteadily.AccordingtothestatisticspublishedbytheGeneralAdministrationofCustomsofChina,thetotalvalueofforeigntradeofimportandexportofChinaamountedtoRMB19.8trillioninthefirsthalfof2022,representingayear-on-yearincreaseof9.4%,amongwhichtheexportvaluewasRMB11.14trillion,up13.2%year-on-year,andtheimportvaluewasRMB8.66trillion,up4.8%year-on-year.Theimportvalueoffsettheexportvalue,resultinginatradesurplusofRMB2.48trillion.
(2)MarketenvironmentoftheportandshippingindustryInthefirsthalfof2022,asthesupplychainimbalanceandportcongestionintheshippingmarketandotherphasedproblemswerealleviated,alargenumberofshipbuildingordersweredeliveredonschedule,unleashingtheglobalsupplyofeffectiveshippingcapacity.Meanwhile,theCOVID-19pandemicandtheRussia-Ukraineconflicthaveledtoaslowdowninglobaleconomicgrowthandinflation,soaringglobaldebtlevels,andasignificantdeclineinconsumerdemand.Besides,UnitedStatesandEuropeancountriesstillhadlargenumberofinventoriesorderedlastyear,resultinginareductionintheirdemandsforprocurementthisyear,aswellasthedemandintheportandshippingindustry,andthefreightrateintheinternationalmarketkeptgoingdown.AccordingtotheDrewryWorldContainerIndex,asof30June,thefreightrateindexwas7066.03points,representingadecreaseof15.87%year-on-year.Slowingglobaleconomicgrowth,recurrenceofthepandemic,congestioninsupplychainandotherfactorshaveledtoaslowdowninthegrowthoftheglobalportindustryinthefirsthalfof2022.Domestically,thesmoothandefficientwaterwaysofkeyportsacrossthecountryoperatedinastableandorderlymanner,andkeyindicatorsmaintaineditsupwardtrendwhileensuringstability.
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AccordingtothestatisticspublishedbytheMinistryofTransport,theaccumulatedcargovolumehandledbyChineseportsreached7,580.79milliontonnesfromJanuarytoJune2022,representingadecreaseof0.8%year-on-year,andtheaccumulatedcontainerthroughputhandledreached142.31millionTEUs,representinganincreaseof3%year-on-year.Amongwhich,coastalportshandledanaccumulatedcargovolumeof4,967.09milliontonnes,representinganincreaseof0.1%year-on-year,whiletheaccumulatedcontainerthroughputwas125.62millionTEUs,representinganincreaseof3%year-on-year.
(3)TheCompany’sindustrypositionTheportindustryisacrucialfoundationofnationaleconomyandsocialprogress,andiscloselylinkedtoglobaleconomicandtradedevelopment.TheCompanyisthegloballeadingportinvestor,developerandoperator,withacomprehensiveportnetworkatmajorhublocationsalongcoastalChina.IthasalsoestablishedpresenceinAsia,Africa,Europe,Oceania,SouthandNorthAmerica.Upholdinganenterprising,steadyandefficientoperatingstyle,theCompanycapitalisesonitsglobalportportfolio,professionalmanagementexperience,theself-developedstate-of-the-artterminaloperationsystemandintegratedlogisticsmanagementplatformforexportsandimports,therebyprovidingitscustomerswithtimelyandefficientportandmaritimelogisticsservicesalongwithcomprehensiveandmodernintegratedlogisticssolutions.Inaddition,theCompanyalsoinvestsinbondedlogisticsbusinessandlaunchesintegratedparkdevelopmentbusiness,promotesthetransformationandupgradeoftheportindustry,developsportsupportingindustries,andiscommittedtoimprovingtheindustrialefficiencyandcreatinggreatervaluethroughthesynergywithinexistingterminalnetwork.II.Corecompetitivenessanalysis
1.SoundshareholderbackgroundandresourceintegrationcapabilityCMG,thedefactocontrolleroftheCompany,wasestablishedin1872,150yearsago.It’stheEstablishedin1872,whichis150yearsago,CMG,theeffectivecontrolleroftheCompany,isforerunnerofChina’sindustrialandcommercialsectorswithexcellentresourceintegrationcapabilitiesandstrongbrandpower.Itisakeystate-ownedenterpriseunderthedirectadministrationofthePRCcentralgovernment.HeadquarteredinHongKong,CMGisanintegratedenterprisewithdiversifiedbusinessesandoneofthefourmajorChineseenterprisesinHongKong.Currently,itmainlyfocussesonthreecoreindustries,namelytransportation&logistics,integratedfinanceandcomprehensivedevelopmentofcitiesandindustrialzones.Inrecentyears,ithassuccessivelyrealizedthetransformationfromthesethreeprimaryindustriestothethreemajorplatformsofindustrialmanagement,financialservices,investmentandcapitaloperation,andalsobegantodeployitsfootprintinbighealth,testingandothersectors.CMGhasbeenratedasaGradeAenterpriseintheOperatingResultsAssessmentoftheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncilfor18consecutiveyears,andisacentralstate-ownedenterprisethatownstwoFortune500companies.Asattheendof2021,thetotalassetsofCMGwereRMB11.5trillion,representinganincreaseof14.6%year-on-year,andCMGwasrankedfirstamongstate-ownedenterprisesintermsofgrossprofit,netprofitandtotalassets.
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Beingacrucialplayerandfacilitatorofthenational“BeltandRoad”initiative,CMGhasacceleratedinternationaldevelopmentandpreliminarilyformedarelativelycompletenetworkofoverseasport,logistics,financeandparkbusiness.ByvirtueofthesoundshareholderbackgroundandampledomesticandoverseasresourcesofCMG,itstrivestocreateaglobalportinvestmentandoperationplatformwithinternationalvisionandglobalexpansioncapabilitiesaswellasaninterconnectedinternationalportcomprehensiveservicesystem,withaviewtobeingaworld-classcomprehensiveportserviceproviderandstandingoutfrompeersintheintensifiedglobalcompetition.
2.Well-balancedglobalportnetworkdistributioncapabilityAsanimportantcarrierfordomesticandoverseasportinvestmentandoperationofCMG,theCompanycontinuestoconductin-depthresearchonthecurrentdevelopmentsituationandtrendsoftheglobalindustrialchainandsupplychain,followsthedevelopmenttrendandpatternoftheglobaltradeandindustry,seizesthesignificantnationalstrategicopportunitiesarisingfromthe“BeltandRoad”initiative,theconstructionoftheGuangdong-HongKong-MacaoGreaterBayArea,theintegrationoftheYangtzeRiverDeltaandthebuildingofanationalunifiedmarket,continuallyoptimizestheglobalportnetwork,andproperlyinvestsinhubandgatewaysofstrategicsignificancearoundtheworld.Inrecentyears,throughmergers,acquisitions,restructuration,renovationofoldports,andbuildingofnewports,theCompanyhasgraduallybuiltamodernportecosystemwithglobalcoverage,furtheringenhancingthevalueoftheportindustryandpushingforwardbalancedregionaldevelopment.Afteryearsofoverseasdevelopment,CMPorthasformedaglobalbusinesslayout.Itsportnetworkcomprises50portswhicharelocatedin25countriesandregionsonsixcontinents.Adheringtotheprincipleof“extensiveconsultation,jointdevelopmentandsharedbenefits”,CMPorthasdevelopedlocal-basedbusinessoperationandformedacommunityofsharedfuturewithcountriesandregionsalongthe“BeltandRoad”initiative,expandeditsnewinternationalcooperationbasedontheconsolidationofconnectivityandcooperation,forgedaheadtogethertowardthehigh-qualitydevelopment.CMPorthasarrangeditsportnetworkproportionatelyindifferentareas,optimizeditsportbusinessandinvestmentportfolio,andbalanceditsinvestmentportfoliowithinthelifecycleofports,whichhasenhanceditscapabilitiesofresistingrisksofindustryfluctuations,tradefictionsandunexpectedeventstoalargerextent.
3.ConsistentlyoptimizedsupplychaincomprehensiveservicecapabilityWiththeoverarchingobjectiveofbecomingahigh-qualityandworld-classcomprehensiveportserviceprovider,theCompanykeepsoptimizingsupplychaincomprehensiveservicecapabilityfrommultipleperspectives.First,inrespectoftheadvancedcomprehensivedevelopmentcapability,takingportbusinessasthecoreandleveragingthesynergyofdifferentportzonesaswellascity-industryintegration,theCompanycontinuallyexploresthecomprehensiveportdevelopmentmodelof“Port-Park-City”.Basedonthetraditionalloadinganddischargingandancillaryservicesatports,itestablishedthecomprehensivedevelopmentmodelthatofferedhighvalue-addedservicestoenterprises.Currently,theCompanyhasparticipatedinpromotingthecomprehensiveportdevelopmentmodelof“Port-Park-City”invariousoverseasregionsandhasachievedremarkable
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resultsandhelpedfosternewprofitgrowthpointsfortheCompany.Secondly,inrespectofmoderncomprehensivelogisticsservicecapability,theCompanyaimsatincreasingitsglobalpresencewithshippingroutesacrossfivecontinents.Asboththeshippingandportsectorsgraduallyshiftedtoformalliances,theCompanyisactivelyintegratingitsdomesticandoverseasportassetsandcapitalisesonitsrelativelycompleteglobalportnetworktoprovidecustomerswithcomprehensiveportlogisticsservicesolutions,formingitsuniquecompetitivestrength.TheCompanyactivelypromotesthe“coordinatedportframework”withtheWestShenzhenPortZoneasitscoreandawidereachthatspreadstoChuKongRiverportgroup,inordertobuildcombinedtransportchannelsintheGuangdong-HongKong-MacaoGreaterBayArea,andrealizethefreetradeofforeigngoodsinportgroupintheGuangdong-HongKong-MacaoGreaterBayArea.Inthefirsthalfofthisyear,theCompanyopened20complexports.Theaccumulatedcontainerthroughputof103,000TEUswerehandledbycomplexportsintheGuangdong-HongKong-MacaoGreaterBayArea,representingayear-on-yearincreaseof5.2timesandaccountingfor91.4%ofthetotalcontainerthroughputhandledthroughthecoordinatedportframeworklastyear,whichfurtherhelpedsmooththelogisticschainandstabilizetheindustrialchainandsupplychain.Thecomplexportsmodelimproveslogisticsefficiencyandreduceslogisticscosts.Theaveragetransferperiodforcontainersimportedandexportedthroughwaterwaytransporthasbeenreducedfromfivetosevendaystotwodays,withitsefficiencyimprovedby60%andapproximately30%ofdeclarationchargessavedforcargoowners.TheCompanyensuresthesafe,orderlyandsmoothflowofcommodityelementresourcesbothathomeandabroadthroughservingdomesticandoverseastradebusiness,demonstratingitsfullparticipationinandfulfilmentofChina’snewdevelopmentpattern,withthedomesticeconomiccycleasthemainstayandthedomesticandinternationaleconomiccyclesboostingeachother.
4.Self-innovativeintelligentportconstructioncapabilityToprovidestrongsupportforleadingthetechnologicalinnovationandindustrialapplicationofnewintelligentport,theCompanyactivelyseizedthedevelopmentopportunityinthewaveofnewtechnologies,andpromotedthedigitalizationtransformationandintelligentupgradeofportsthrough“CMChip”and“CMePort”.“CMChip”istheadvancedportoperationsystemself-developedbyCMIT,ahigh-techenterpriseundertheCompany,includingCTOS(ContainerTerminalOperationSystem),BTOS(BulkCargoTerminalOperationSystem),andLPOS(LogisticParkOperationSystem),withaviewtorealizingthedigitizationandintellectualizationofproductionandoperation.Currently,seriesproductsof“CMChip”havebeenfullyappliedindomesticandoverseasterminalsthattheCompanymainlycontrols,whichcomprehensivelyenhancesthecorecompetitivenessofmodernports.BasedontheCompany’sglobalportnetwork,“CMePort”isadigitalizedcomprehensiveserviceecologyplatformfacingthewholeportshippinglogisticsindustryandintegratingport,shipping,logisticsandthird-partyecommerceplatform.Itprovidesservicessuchasintelligentlogistics,intelligentportaswellasintelligentfinanceandbusiness,promotesconstructionofintelligentportecologycircle,facilitatestransactionsbetweenlogistics-relatedpartiesthroughtheplatformformoreefficiency,anddeliversinnovativeportservicesunderanadvancedbusinessmodel.Focusingonninemajorintelligentelements,namely“CMChip,CMePort,automation,intelligentports,5Gnetworkapplication,blockchain,Beidousystem,artificialintelligence,andgreenand
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
low-carbondevelopment”,theCompanyactivelypromotesintelligentportconstructionandbuilds“MawanSmartPort”,thefirst5Ggreenandlow-carbonintelligentportintheGuangdong-HongKong-MacaoGreaterBayArea.MawanSmartPortisequippedwith385Gunmannedcontainertrucksforpracticaloperations,provingitselftobethelargestunmannedcontainertruckfleetinasingleterminalnationwideorevenworldwide,andthefirstdemonstrationzoneof"5G+unmanneddriveapplication"inChina.The“CMChip”operationsystemself-developedbytheCompanybrokethepreviousdominanceofforeignsoftwareterminalproductionmanagementsystems,andhasbeensuccessfullypromotedandappliedindomesticandforeignterminals,achievingabreakthroughinthenationalportsystem.Currently,MawanSmartPorthasbecomeabenchmarkforthetransformationoftraditionalterminalstoefficient,safe,greenandunmannedsmartterminals,embarkingonanewvoyagetowardpowerfulportoftechnologyandformingintelligentportcomprehensivesolutionswith“CMCharacteristics”.SincetheoperationofMawanSmartPort,therehavebeen3,710in-and-outportships,withathroughoutreaching1millionTEUsand28newshippingroutes.
5.SoundandefficientportmanagementcapabilityAdheringtotheproactive,soundandefficientoperatingstyleandbenefitingfromitsglobalportassetsandresourcesportfolio,theCompanyiscommittedtoprovidingcustomerswithtimelyandefficientportandmaritimelogisticsservicesaswellasprofessionalandfirst-classsolutions,andhasbecomethepreferredpartnerforcustomersandanimportantgatewayforthecountry’sforeigntrade,therebymakingduecontributionstothecountry’sforeigntradedevelopment.Atthesametime,theCompanyalsomadeanextensiveinvestmentinbondedlogisticsbusinesstoexpanditsportvaluechainandenhanceindustrialvalue.Takingadvantagesofthesynergyofitsexistingterminalnetwork,theCompanycreatedvaluesforbothitscustomersandshareholders.TheCompanyhasearneditselfgoodreputationacrosstheindustrybyitsprofessionalmanagementexperienceaccumulatedforyears,itsself-developedgloballeadingterminaloperatingsystemandintegratedlogisticsmanagementplatformforimportandexport,itsextensivemaritimelogisticssupportsystemwithall-roundedmodernintegratedlogisticssolutions,anditshigh-qualityengineeringmanagementandreliableserviceofferings.III.Corebusinessanalysis
1.Portbusinessreview
(1)OverviewofportbusinessInthefirsthalfof2022,theCompany’sportshandledatotalcontainerthroughputof66.777millionTEUs,down0.7%year-on-year.BulkcargovolumehandledbytheCompany’sportsdecreasedby5.2%year-on-yearto292milliontonnes,whichwasmainlyduetotheimpactofthepandemic.Forcontainerbusiness,theCompany’sportsinMainlandChinahandledacontainerthroughputof46.289millionTEUs,representingayear-on-yeardecreaseof1.1%,portsinHongKongandTaiwanregionscontributedatotalcontainerthroughputof3.597millionTEUs,representingayear-on-yeardecreaseof4.5%,andthetotalcontainerthroughputhandledbythe
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Company’soverseasportsgrewby1.6%year-on-yearto16.891millionTEUs.Intermsofbulkcargobusiness,theCompany’sportsinMainlandChinahandledabulkcargovolumeof289milliontonnes,down5.2%year-on-year,andoverseasportshandledabulkcargovolumeof3.21milliontonnes,down7.6%year-on-year.
Table3-1ThroughputoftheCompanyandchangesin1H2022
Item
| Item | 1H2022 | 1H2021 | Changes |
| Containerthroughput(’0,000TEU) | 6,677.7 | 6,721.7 | -0.7% |
| Amongwhich:MainlandChina | 4,628.9 | 4,681.7 | -1.1% |
| HongKongandTaiwan | 359.7 | 376.7 | -4.5% |
| Overseas | 1,689.1 | 1,663.3 | 1.6% |
| Bulkcargothroughput(’0,000tonnes) | 29,243.7 | 30,857.7 | -5.2% |
| Amongwhich:MainlandChina | 28,922.7 | 30,510.4 | -5.2% |
| Overseas | 321.0 | 347.3 | -7.6% |
Note:1.Thestatisticsrepresentedthetotalthroughputoftheholdingsubsidiaries,associatesandjointventuresoftheCompany;2.DalianPortCo.,Ltd.,thejointstockcompany,wasgenerallychangedtoLiaoningPortCo.,LtdduetothemergerofYingkouPortCo.,Ltd.byitthroughconversionandabsorption.Assuch,theCompanyhasbeenincludingthebusinessvolumeofYingkouPortCo.,LtdsinceFebruary2021.
(2)Operationconditionofportbusinessbyregion
Table3-2ContainerthroughputoftheCompanyandchangesin1H2022(in’0,000TEU)
| Regionandportcompany | 1H2022 | 1H2021 | Changes | ||
| PearlRiverDelta | Holdingcompany | WestShenzhenPortZone | 647.9 | 649.6 | -0.3% |
| ShundeNewPort | 21.0 | 22.2 | -5.4% | ||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Jointstockcompany
| Jointstockcompany | ChuKongRiverTradeTerminal | 42.3 | 54.7 | -22.7% | |
| YangtzeRiverDelta | Jointstockcompany | SIPGGroup | 2,254.6 | 2,293.9 | -1.7% |
| Holdingcompany | NingboDaxie | 172.7 | 169.7 | 1.8% | |
| BohaiRim | Jointstockcompany | TianjinPortContainerTerminal | 431.9 | 446.6 | -3.3% |
| QQCTU | 443.2 | 418.4 | 5.9% | ||
| LiaoningPortCo.,Ltd. | 468.5 | 464.5 | 0.9% | ||
| South-EastregionofMainlandChina | Holding | ZhangzhouPort | 13.6 | 11.9 | 14.3% |
| ShantouPort | 74.4 | 92.3 | -19.4% | ||
| South-WestregionofMainlandChina | Holding | ZhanjiangPort | 58.9 | 57.8 | 1.9% |
| HongKongandTaiwan | Holdingcompany/Jointstockcompany | CMCS/ModernTerminals | 250.1 | 281.7 | -11.2% |
| Jointstockcompany | TaiwanKaoMingContainer | 109.6 | 95.0 | 15.4% | |
| Overseas | Holdingcompany | CICT | 161.7 | 150.1 | 7.7% |
| TCP | 56.2 | 53.9 | 4.3% | ||
| LCT | 71.6 | 73.2 | -2.2% | ||
| Jointstockcompany | TL | 1,294.4 | 1,274.4 | 1.6% | |
| Kumport | 61.3 | 61.8 | -0.8% | ||
| PDSA | 30.3 | 35.1 | -13.7% | ||
| TICT | 13.6 | 14.7 | -7.5% | ||
| Total | 6,677.7 | 6,721.7 | -0.7% | ||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Note:1.SinceApril2020,theCompanyhasnewlyincludedthebusinessvolumeofeightnewterminalsacquiredbyTL,ajointstockcompanyoftheCompany;2.DalianPortCo.,Ltd.,thejointstockcompany,wasgenerallychangedtoLiaoningPortCo.,LtdduetothemergerofYingkouPortCo.,Ltd.byitthroughconversionandabsorption.Assuch,theCompanyhasbeenincludingthebusinessvolumeofYingkouPortCo.,LtdsinceFebruary2021.
Table3-3BulkcargovolumehandledbytheCompanyandchangesin1H2022(in’0,000tonnes)
Regionandportcompany
| Regionandportcompany | 1H2022 | 1H2021 | Changes | ||
| PearlRiverDelta | Holdingcompany | WestShenzhenPortZone | 810.8 | 819.1 | -1.0% |
| DongguanMachong | 839.7 | 789.0 | 6.4% | ||
| ShundeNewPort | 291.6 | 259.5 | 12.4% | ||
| Jointstockcompany | ChuKongRiverTradeTerminal | 183.1 | 141.5 | 29.4% | |
| YangtzeRiverDelta | Jointstockcompany | SIPGGroup | 3,011.4 | 4,464.3 | -32.5% |
| BohaiRim | Jointstockcompany | QQTU | 863.1 | 915.9 | -5.8% |
| QingdaoPortDongjiakou | 3,865.6 | 3,372.7 | 14.6% | ||
| LiaoningPortCo.,Ltd. | 12,761.6 | 12,972.9 | -1.6% | ||
| LaizhouHarbourAffairs | 1,071.5 | 1,243.6 | -13.8% | ||
| South-EastregionofMainlandChina | Holdingcompany | ZhangzhouPort | 439.2 | 431.2 | 1.9% |
| XiaMenBayTerminals | 321.8 | 238.8 | 34.8% | ||
| ShantouPort | 151.3 | 162.0 | -6.6% | ||
| South-WestregionofMainlandChina | Holdingcompany | ZhanjiangPort | 4,311.8 | 4,699.8 | -8.3% |
| Overseas | Holdingcompany | HIPG | 79.2 | 79.3 | -0.2% |
| Jointstockcompany | Kumport | 3.8 | 8.3 | -54.3% | |
| PDSA | 238.0 | 259.7 | -8.3% | ||
| Overseas | 29,243.7 | 30,857.7 | -5.2% | ||
Note:1.HIPGhasincludedliquidbulkcargointhestatisticsofitsbusinessvolumesince2020;2.DalianPortCo.,Ltd.,thejointstockcompany,wasgenerallychangedtoLiaoningPortCo.,LtdduetothemergerofYingkouPortCo.,Ltd.byitthroughconversionandabsorption.Assuch,theCompanyhasbeenincludingthebusinessvolumeofYingkouPortCo.,Ltd.sinceFebruary2021.
PearlRiverDeltaregionTheWestShenzhenPortZonehandledacontainerthroughputof6.479millionTEUs,down0.3%year-on-year,andabulkcargovolumeof8.108milliontonnes,down1.0%year-on-year.ShundeNewPorthandledacontainerthroughputof0.210millionTEUs,down5.4%year-on-year,andabulkcargovolumeof2.916milliontonnes,up12.4%year-on-year,mainlybenefitingfromthe
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
increaseofsteeldemandandhigherbusinessvolumeofnewcustomers.DongguanMachonghandledabulkcargovolumeof8.397milliontonnes,representinganincreaseof6.4%year-on-year,mainlyduetotheincreasingimportsdrivenbyraisingdemandfromgrain-foragemarket.ChuKongRiverTradeTerminalhandledatotalofcontainerthroughputof0.423millionTEUs,down22.7%year-on-year,whichwasmainlyduetothevolatilityonbusinessvolumeoftheterminalinflictedbyCOVID-19pandemic.Italsohandledabulkcargovolumeof1.831milliontonnes,up29.4%year-on-year,mainlyduetotheadjustmenttobusinessstructure.
YangtzeRiverDeltaregionSIPGhandledacontainerthroughputof22.546millionTEUs,down1.7%year-on-year.Bulkcargovolumehandleddecreasedby32.5%year-on-yearto30.114milliontonnes,whichmainlybecauseshippingcompaniesadjustedtheirshippingroutesinresponsetotheresurgenceofthepandemicinAprilandMay.NingboDaxiehandledacontainerthroughputof1.727millionTEUs,representinganincreaseof1.8%year-on-year.
BohaiRimregionQQCTUdeliveredacontainerthroughputof4.432millionTEUs,up5.9%year-on-year.QQTUdeliveredabulkcargovolumeof8.631milliontonnes,down5.8%year-on-year.QingdaoPortDongjiakouhandledabulkcargovolumeof38.656milliontonnes,up14.6%year-on-year,mainlybenefitingfromtheironorebusinessgrowth.LiaoningPortCo.,Ltd.handledacontainerthroughputof4.685millionTEUs,up0.9%year-on-year,andabulkcargovolumeof127.616milliontonnes,down1.6%year-on-year.LaizhouHarbourAffairshandledacontainerthroughputof10.715milliontonnes,down13.8%year-on-year,whichwasmainlyaffectedbythedecreaseinthebusinessvolumeofoil/liquefiedchemicals.TianjinPortContainerTerminalhandledacontainerthroughputof4.319millionTEUs,down3.3%year-on-year.
South-EastregionofMainlandChinaZhangzhouPorthandledacontainerthroughputof0.136millionTEUs,increasedby14.3%year-on-year,mainlybenefitingfromsourcesexpansionofweightedboxesinhinterlandandinnovationonportoperatingmode,andthebulkcargovolumeithandleddecreasedby1.9%year-on-yearto
4.392milliontonnes.XiaMenBayTerminalshandledabulkcargovolumeof3.218milliontonnes,up34.8%year-on-year,mainlybenefitingfromtheorebusinessgrowthandnewcementbusiness.ShantouPorthandledacontainerthroughputof0.744millionTEUs,down19.4%year-on-year,whichwasmainlyduetothedecreasedcontainervolumeindomesticallysouth-northtradeasaffectedbythepandemic,andthebulkcargovolumeithandleddecreasedby6.6%year-on-yearto
1.513milliontonnes.
South-WestregionofMainlandChinaZhanjiangPorthandledacontainerthroughputof0.589millionTEUs,up1.9%year-on-year,andabulkcargovolumeof43.118milliontonnes,down8.3%year-on-year,mainlyduetothedeceasedcoalcargoresultingfromthecoalpricedistortionininternationaltrade,increasedrawmaterialpriceandotherfactors.
HongKongandTaiwanregionsCMCSandModernTerminalsinHongKongdeliveredanaggregatecontainerthroughputof2.501millionTEUs,down11.2%year-on-year,whichwasaffectedbyongoingpandemicoutbreakandthetighteninganti-pandemicpolicies.KaoMingContainerinTaiwanhandledatotalofcontainer
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
throughputof1.096millionTEUs,up15.4%year-on-year,mainlycausedbyregionalportscongestionduetothepandemic,andpartofcontainershadtobetransportedtoKMCT.
OverseasoperationInSriLanka,CICThandledacontainerthroughputof1.617millionTEUs,up7.7%year-on-year,mainlybenefitingfromthegrowthincontainervolumeoftransshipment;HIPGhandledbulkcargovolumeof0.792milliontonnes,remainingrelativelystableyear-on-year;RO-ROvolumehandledwas0.266millionvehicles,down5%year-on-year.ThankstotheeconomicrecoveryinBrazilandnewly-addedshippingroutes,TCPinBrazilhandledacontainerthroughputof0.562millionTEUs,representinganincreaseof4.3%year-on-year.LCTinTogohandledacontainerthroughputof
0.716millionTEUs,down2.2%year-on-year,mainlyduetotheregionalimpactofpandemiconshippingroutestotheport.TLhandledacontainerthroughputof12.944millionTEUs,up1.6%year-on-year.
、ImplementationofbusinessplanduringthereportingperiodDuringtheReportingPeriod,underthecircumstanceoftheworldwidesporadicoutbreaksoftheCOVID-19pandemicandthefrequentoccurrenceof“blackswanevents”suchasRussia-UkraineConflict,theCompanystillguaranteedsmoothshipment,valuedpeople'slivelihood,ensuredeconomicgrowthandkeptprovidingservingthesupplychainwithflexibility,safetyandefficiency.Throughfocusingontheendogenousgrowthofdevelopmentofleadingportsandpromotingtheextensionoflogisticsvaluechainwithportbusinessasitscore,value-addedservicecanbeofferedtoend-customers,thusenhancingcomprehensivecompetitivenessandpushinghighqualitydevelopment.
(1)Focusingonthedevelopmentofleadingportsandstimulatingitsendogenousgrowth.Inthefirsthalfof2022,thecontainerbusinessgrowthofdomesticterminalsthattheCompanymainlycontrolsoutpacetheaverageofallcoastalterminals.Forthedomestichomebaseport,westShenzhenPortZoneremainedastablecontainervolumeduringthepandemic,showingitsenhancedadvantageondenseshippingroutesasthatnetadditionof15routeswasmadeascomparedtothesameperiodof2021,representingafurtheroptimizationofbusinessstructureoftheterminal;DigitalTradingCentreforGlobalFruitsandVegetableinHongKonghadbeenofficiallyopened,andtheShenzhenWesternPortArea,aninternationalhubport,backeditsoperationtoprovidethefullprocessservicesofonlinetradingplatformtocustomerwithefficiency,convenienceandstandardization,continuouslyforgingShenzhenWesternPortAreatothelargestportforfruitsinSouthChina.Fortheoverseashomebaseport,CICThandledacontainerthroughputof1.62millionTEUs,increasedby7.7%year-on-year.Itattractsmorelocalcontainersanditsmarketsharealsoclimbsup,becominganinternationalcontainerhubport.
(2)FacingthepandemicwithsciencemethodandwellpreparedforsupplyingandassistingHongKong.Inrespectofpandemicprevention,theCompanystandsitsbottom-linetocontrolthepandemicinasmoothandorderlymanner.ShenzhenWesternPortAreascientificallyrespondedtothepandemicreoccurredinShenzheninMarchwithunifiedplanningsoastotakeintoconsiderationeveryaspectofamatterandimplementationofaccuratepolicies,makinggreatestanti-pandemicachievementwithaminimumofeffort.InrespectofsupplyingandassistingHongKong,ShenzhenWesternPortAreabecameaportwhichisshortest,fastestwithmostfrequentandlargestcapacityfromShenzhentoHongKong.Inthefirsthalfof2022,theShippingRoutefor
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
SupplytoHKofShenzhenWesternPortAreahandledatotalofloadedcontainersof100,000TEUswith1,717shippingtimes,accountedfor57%oftheamountofgoodssuppliedtoHongKongbyshippingofShenzhenport.ItensuredthatthegoodssupplytoHongKongunloadedandacceptedinashortestandefficientway,achievingzeroberthsofbargeoperationsandzerostockofHongKongsupply.
(3)Furtherexpandingbusinessandextendingvaluechain.Withrespectofdomesticbusiness,basedontheWestShenzhenhomebaseport,theCompanykeepsstrengtheningthebuildingofcargocollection,distributionandtransportsystemreplyingonShenzhenWesternPortArea.Atotalof20coordinatedportsofCombinedPortPlatformintheGuangdong-HongKong-MacaoGreaterBayAreahasbeenputintooperationandserved3,363importandexportenterprisesinthearea.Inthefirsthalfof2022,over100,000TEUswerehandledanditsbusinessscopeinvolvingsevencitieswithintheGreaterBayArea.Withrespectofoverseabusiness,basedontheportinDjiboutiandFTAplatform,theCompanycombinesitsstorageresourcesincurrentportstoextendportserviceof“end-to-end”,launchandpromotethe"China-Djibouti-AfricaMajorregions"seaandaircombinedtransportationproducts,andcompletetheoperationofthefirstcargodepartingfromShenzhenWestPortArea,andthenairtransportationanddistributiontoLagos,NigeriaviaDjiboutiInternationalFreeTradeZoneonMay8.createabrand-newwhole-processlogisticsmodeChina-AfricaAirandSeaExpress,expandthebusinessthatcandirectlyconnectwithcargoowners,providewhole-processlogisticssolutionsandstrengthentheabilitytoprovidecomprehensivelogisticssolutionsforcustomers.
(4)Insistingontechnologicalinnovationandobtaininggreatachievementsinsmartportconstruction.MawanIntelligentPort,beingasasmartportbenchmarkingprojectofChinaMerchantsPort,hasbeenputintooperationsinceJune2021,takingaleadfromtraditionalbulkterminalsupgradedtoautomatedterminalinChina.Meanwhile,MawanIntelligentPortownsthelargestunmannedtruckfleetatasingleterminalinChinaoreventheworld,including385Gunmannedcontainertrucksoperatedonboard,andisalsothefirst5G+unmanneddemonstrationzoneinChina.AsofJune2022,MawanIntelligentPort’sshippingroutesreached58,achievingthroughputof1,000,000TEUssinceitsoperationaswellasasignificanteconomicbenefit.Inaddition,CTOSprojectoftheportofThessaloniki,Greece,implementedbyCMIT,ahigh-techenterpriseundertheCompanyofficiallylaunchedinJune,whichincludesover60operationprocessesandmorethan20tradingtypesoftheport.Assuch,CTOSproductsofCMPorthasfullyachievedthemulti-disciplineinteractionwithin“HongKong-RailwayStation-FreeTradeZone”,whichrepresentsasuccessfulentryintotheEuropeanmarket.
(5)Strengtheningindustryinteractionanddeepeningcomprehensivedevelopment.TheCompanycontinuestocarryoutcomprehensivedevelopmentbusinessandpromotesinvestmentattractionofthepark.Foroverseasindustrialpark,HambantotaIndustrialParkinSriLankawasoccupiedby37contractedenterprisesandsuccessfullyintroducedINSEE,thecementmanufacturerwhoownsthebiggestproductionscaleinSriLankainthefirsthalfof2022.Ithasgraduallyformedanindustriallayoutof6+N,includinghouseholdappliances,electronicsandmotors,rubbertires,newenergyvehicles,newmaterials,textileandapparel,andotherindustries;DjiboutiFreeTradeZonewasoccupiedby237contractedenterprises.TheCompanycreatedDjiboutiLiaochengproductstoragecentreandDjibouti"MadeinLiaocheng"productsonlineandofflineexhibitioncenterofcross-bordere-commercewithShandongLiaocheng,whichhelpeddomesticenterprisessteadilydevelopforeigntradeandinvigoratetheindustrialecologyofDjiboutiportandDjibouti
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
FreeTradeZone.
(6)Deepeningmanagementreformandempoweringsmartoperation.TheCompanycomprehensivelybuiltthe"digitalinvestmentport",andadaptedtheSmartManagementPlatform(the“SMP”)inthefirsthalfoftheyear.TheSMPisaunitedplatformthatrunsthroughthewholeprocess,connectsthewholescene,anddocksthewholesystemoftheenterprise,soastoachievecomprehensivedigitalmanagementofbusinessprocess,andprovideaone-stopoperatingmodelfortheDecision-makingpersonnel,ManagementandExecutivetosupportthemanagementdecisionbasedonthepresentationandanalysisofglobalbusinesscoredata.TheSMPadherestothecombinationoftop-leveldesignanditerativedevelopmentmode,withdigitaltechnologyasthekeyforce,andtheapplicationofsmarttoolstodrivethetransformationofmeans,modesandconceptsoftheoperationandmanagementofCMPort.
(7)Carryingoutcapitaloperationsandoptimizingcapitalstructure.Inthefirsthalfoftheyear,ChinaMerchantsPort,aholdingsubsidiaryoftheCompany,heldadditionalsharesof3,290millionofSIPG.Afterthecompletion,theshareholdinginSIPGheldbyChinaMerchantsPortincreasedfrom26.64%to28.05%,whichfurtherconsolidatedtheCompany'spositionasthesecondlargestshareholderofSIPG,soastosharethebonusofportdevelopmentinYangtzeRiverDelta.Uponthecompletionofacquisitionof14.6%equityofAsiaAirfreightTerminal(AAT)byChinaMerchantsPortinthefirsthalfoftheyear,itsshareholdingincreasedto34.6%.AATisoneofthethreeaircargoterminaloperatorswhichhaveconcessionauthorizedbytheAirportAuthorityofHongKong.EnlargedshareholdingofAATwillhelprealizethesynergybetweentheCompany'sterminalbusiness,bondedwarehousebusinessandHongKongAirportbusiness,expandthespaceforairportbusinessdevelopment,andcontinuouslydeepenthelogisticssupplychainlayoutintheGuangdong-HongKong-MacaoGreaterBayArea.
3.Year-on-yearChangesinKeyFinancialData
Unit:RMB
H12022
| H12022 | H12021 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 8,150,462,367.19 | 7,339,942,862.26 | 11.04% | - |
| Operatingcosts | 4,637,368,881.65 | 4,198,451,164.27 | 10.45% | - |
| Administrativeexpense | 812,502,660.55 | 766,369,973.37 | 6.02% | - |
| Financecosts | 1,351,945,047.67 | 730,109,013.88 | 85.17% | ExchangelossesincreasedYoYandthemeasurementmethodadoptedforconcessionroyaltiesliabilitiesofTCPwaschangedtotheamortizedcostmethod |
| Incometaxexpense | 625,643,717.42 | 643,438,595.12 | -2.77% | - |
| R&Dinvestments | 114,833,178.50 | 98,344,411.25 | 16.77% | - |
| Netcashgeneratedfrom/usedinoperatingactivities | 3,221,251,177.09 | 2,934,960,407.96 | 9.75% | - |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Netcashgeneratedfrom/usedininvestingactivities
| Netcashgeneratedfrom/usedininvestingactivities | -1,863,650,103.30 | 53,828,332.73 | -3,562.21% | YoYincreaseinexpendituresonequityinvestmentsinthecurrentperiod |
| Netcashgeneratedfrom/usedinfinancingactivities | 126,775,022.25 | -5,513,332,001.73 | 102.30% | YoYincreaseinnetinflowofborrowingsinthecurrentperiod |
| Netincreaseincashandcashequivalents | 1,396,165,516.30 | -2,551,095,256.98 | 154.73% | YoYincreaseinnetcashgeneratedfromfinancingactivitiesinthecurrentperiod |
| Gainsfromchangesinfairvalue | -38,026,112.58 | -488,532,866.45 | 92.22% | ThemeasurementmethodadoptedforconcessionroyaltiesliabilitiesofTCPwaschangedtotheamortizedcostmethod |
SignificantchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable√NotapplicableNosuchchangesintheReportingPeriod.Breakdownofoperatingrevenue:
Unit:RMB
| H12022 | H12021 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 8,150,462,367.19 | 100% | 7,339,942,862.26 | 100% | 11.04% |
| Byoperatingdivision | |||||
| Portoperations | 7,873,061,727.12 | 96.60% | 7,048,459,976.64 | 96.03% | 11.70% |
| Bondedlogisticsservice | 209,325,133.72 | 2.57% | 204,996,959.89 | 2.79% | 2.11% |
| Propertydevelopmentandinvestment | 68,075,506.35 | 0.84% | 86,485,925.73 | 1.18% | -21.29% |
| Byproductcategory | |||||
| Byoperatingsegment | |||||
| MainlandChina,HongKongandTaiwan | 6,200,189,217.85 | 76.07% | 5,552,294,281.37 | 75.64% | 11.67% |
| Othercountriesandregions | 1,950,273,149.34 | 23.93% | 1,787,648,580.89 | 24.36% | 9.10% |
Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
Unit:RMB
| Operatingrevenue | Costofsales | Gross | YoYchangein | YoYchangein | YoYchangein |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
profitmargin
| profitmargin | operatingrevenue(%) | costofsales(%) | grossprofitmargin(%) | |||
| Byoperatingdivision | ||||||
| Portoperations | 7,873,061,727.12 | 4,381,697,018.80 | 44.35% | 11.70% | 10.41% | 0.65% |
| Byproductcategory | ||||||
| Byoperatingsegment | ||||||
| MainlandChina,HongKongandTaiwan | 6,200,189,217.85 | 3,763,304,055.82 | 39.30% | 11.67% | 12.02% | -0.19% |
| Othercountriesandregions | 1,950,273,149.34 | 874,064,825.83 | 55.18% | 9.10% | 4.20% | 2.11% |
CorebusinessdatarestatedaccordingtothechangedmethodsofmeasurementthatoccurredintheReportingPeriod:
□Applicable√NotapplicableAnyover30%YoYmovementsinthedataaboveandwhy:
□Applicable√NotapplicableIVAnalysisofNon-CoreBusinesses
Unit:RMB
| Amount | As%ofprofitbeforetax | Source/Reason | Recurrentornot | |
| Investmentincome | 4,355,273,765.49 | 79.11% | Shareoftheprofitofjointventuresandassociates,mainlyShanghaiPort | Yes |
| Otherincome | 87,480,824.65 | 1.59% | Mainlyforgovernmentsubsidies | Not |
VAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 30June2022 | 31December2021 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Monetaryassets | 14,171,964,195.08 | 7.77% | 12,772,349,406.77 | 7.26% | 0.51% | - |
| Accountsreceivable | 1,840,398,775.49 | 1.01% | 1,320,577,577.81 | 0.75% | 0.26% | - |
| Inventory | 219,602,505.71 | 0.12% | 194,920,136.12 | 0.11% | 0.01% | - |
| Investmentrealestate | 5,213,447,878.80 | 2.86% | 5,298,238,414.88 | 3.01% | -0.15% | - |
| Long-termequityinvestment | 74,541,201,708.16 | 40.86% | 70,353,451,824.52 | 39.98% | 0.88% | Increaseindividendsreceivablefrom |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
investeeenterprises
| investeeenterprises | ||||||
| Fixedassets | 31,388,137,617.06 | 17.20% | 31,710,513,230.29 | 18.02% | -0.82% | Mainlyduetotheimpactofdepreciation |
| Projectsunderconstruction | 2,616,086,132.03 | 1.43% | 2,557,584,953.92 | 1.45% | -0.02% | - |
| Rightassets | 9,106,596,039.35 | 4.99% | 8,743,077,542.19 | 4.97% | 0.02% | - |
| Short-termborrowings | 15,482,279,719.62 | 8.49% | 13,651,452,805.36 | 7.76% | 0.73% | - |
| Contractliability | 225,350,974.85 | 0.12% | 196,784,525.26 | 0.11% | 0.01% | - |
| Long-termpayables | 7,577,041,256.64 | 4.15% | 7,144,839,870.89 | 4.06% | 0.09% | - |
| Leaseliability | 1,060,180,377.44 | 0.58% | 1,055,194,906.09 | 0.60% | -0.02% | - |
| Otherreceivables | 2,234,309,527.16 | 1.22% | 696,276,595.87 | 0.40% | 0.82% | Increaseindividendsreceivablefrominvesteeenterprises |
| Non-currentassetsduewithinoneyear | 134,710,787.73 | 0.07% | 102,356,461.97 | 0.06% | 0.01% | - |
| Othercurrentassets | 137,978,273.63 | 0.08% | 339,684,297.41 | 0.19% | -0.11% | - |
| Taxespayable | 1,143,491,598.23 | 0.63% | 2,162,719,251.68 | 1.23% | -0.60% | Paymentoflandpreparationtax |
| Otherpayables | 3,485,085,782.19 | 1.91% | 2,140,108,341.08 | 1.22% | 0.69% | Increaseindividendspayable |
| Non-currentliabilitiesduewithinoneyear | 2,813,987,163.97 | 1.54% | 8,268,209,284.17 | 4.70% | -3.16% | Repaymentofbondsandborrowingsduewithinoneyear |
| Othercurrentliabilities | 5,163,575,748.06 | 2.83% | 2,158,497,775.85 | 1.23% | 1.60% | Increaseinshort-termfinancingnotespayable |
| Provisions | 31,464,238.16 | 0.02% | 24,247,302.42 | 0.01% | 0.01% | - |
2.MajorAssetsOverseas
| Asset | Source | Assetvalue(RMB’0,000) | Location | Operations | Controlmeasurestoprotectassetsafety | Returngenerated(RMB’0,000) | As%oftheCompany’snetassetvalue | Materialimpairmentrisk(yes/no) |
| Equityassets | Acquiredviashareoffering | 14,630,951.67 | HongKong | Portinvestmentandoperations | Appointingdirector,supervisorandseniormanagement/Accordingtothepolitical,economicandlegalenvironmentofdifferentcountriesandregions,establishatargetedinternal | 451,704.64 | 89.24% | No |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
controlsystemandearlywarningsystem.
| controlsystemandearlywarningsystem. | |||
| Otherinformation | N/A | ||
3.AssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangesthroughequity | ImpairmentallowancemadeintheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingamount |
| Financialassets | ||||||||
| Held-for-tradingfinancialassets(exclusiveofderivativefinancialassets) | 6,921,831,502.55 | 8,456,691.77 | - | - | -1,657,378,882.19 | 5,272,909,312.13 | ||
| Otherequityinstrumentinvestment | 180,251,798.43 | - | 12,041.97 | - | - | 8,637,878.97 | - | 171,625,961.43 |
| Othernon-currentfinancialassets | 809,515,244.87 | -46,482,804.35 | - | - | 50,200,000.00 | - | 5,636,852.70 | 818,869,293.22 |
| Subtotaloffinancialassets | 7,911,598,545.85 | -38,026,112.58 | 12,041.97 | - | 50,200,000.00 | 8,637,878.97 | -1,651,742,029.49 | 6,263,404,566.78 |
| Receivablesfinancing | 238,429,402.71 | - | - | - | - | - | -47,029,887.19 | 191,399,515.52 |
| Totaloftheabove | 8,150,027,948.56 | -38,026,112.58 | 12,041.97 | - | 50,200,000.00 | 8,637,878.97 | -1,698,771,916.68 | 6,454,804,082.30 |
| Financialliabilities | - | - | - | - | - | - | - | - |
OtherchangesOtherchangesinheld-for-tradingfinancialassetsweremainlycausedbychangesinstructureddeposits.Otherchangesinothernon-currentfinancialassetsweremainlyduetotheimpactofexchangeratechanges.Otherchangesinreceivablesfinancingweremainlyduetochangesinreceivablesfinancing.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
4.RestrictedAssetRightsasatthePeriod-EndTherestrictedmonetaryassetswereRMB13,071,525.94ofsecuritydeposits.ThecarryingvalueoffixedassetsascollateralforbankloanswasRMB272,372,129.67.ThecarryingvalueofconstructioninprogressascollateralforbankloanswasRMB11,748,467.79.ThecarryingvalueofintangibleassetsascollateralforbankloanswasRMB209,640,890.21.ThecarryingvalueofequitiesandinterestsascollateralforbankloanswasRMB2,609,949,170.85.VIInvestmentsMade
1.TotalInvestmentAmount
TotalinvestmentamountintheReportingPeriod(RMB)
| TotalinvestmentamountintheReportingPeriod(RMB) | Totalinvestmentamountinthesameperiodoflastyear(RMB) | Change(%) |
| 3,337,218,524.42 | 1,331,950,431.45 | 150.55% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable√Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
Unit:RMB
| Varietyofsecurity | Codeofsecurity | Nameofsecurity | Initialinvestmentcost | Accountingmeasurementmethod | Beginningcarryingamount | Gain/lossonfairvaluechangesintheReportingPeriod | Accumulatedfairvaluechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Gain/lossintheReportingPeriod | Endingcarryingamount | Accountingtitle | Fundingsource |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Stock
| Stock | 6198 | QingdaoPort | 124,405,138.80 | Fairvaluemethod | 145,443,863.52 | -21,842,804.35 | - | - | - | 10,252,811.00 | 129,237,911.87 | Othernon-currentfinancialassets | Self-funded |
| Stock | 601298 | QingdaoPort | 331,404,250.30 | Fairvaluemethod | 637,280,000.00 | -24,640,000.00 | - | - | - | 28,716,800.00 | 612,640,000.00 | Othernon-currentfinancialassets | Self-funded |
| Stock | 600377 | JiangsuExpressway | 1,120,000.00 | Fairvaluemethod | 8,620,000.00 | - | 12,041.97 | - | 8,632,041.97 | - | - | Otherequityinstrumentinvestment | Self-funded |
| Stock | 400032 | PetrochemicalA1 | 3,500,000.00 | Fairvaluemethod | 382,200.00 | - | - | - | - | - | 382,200.00 | Otherequityinstrumentinvestment | Self-funded |
| Stock | 400009 | GuangJian1 | 27,500.00 | Fairvaluemethod | 17,000.00 | - | - | - | - | - | 17,000.00 | Otherequityinstrumentinvestment | Self-funded |
| Stock | 600179 | AntongHoldings | 391,956.73 | Fairvaluemethod | 157,196.79 | 412.59 | - | 50,200,000.00 | - | - | 50,357,609.38 | Held-for-tradingfinancialassets;Othernon-currentfinancialassets | Self-funded |
| Total | 460,848,845.83 | -- | 791,900,260.31 | -46,482,391.76 | 12,041.97 | 50,200,000.00 | 8,632,041.97 | 38,969,611.00 | 792,634,721.25 | -- | -- | ||
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
5.UseofFundsRaised
(1)OverallUsageofFundsRaised
Unit:RMB’0,000
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Year
| Year | Wayofraising | Totalfundsraised | TotalfundsusedintheCurrentPeriod | Accumulativefundused | Totalfundswithusagechanged | Accumulativefundswithusagechanged | Proportionofaccumulativefundswithusagechanged | Totalunusedfunds | Theusageanddestinationofunusedfunds | Amountoffundsraisedidleforovertwoyears |
| 2019 | Privateplacement | 221,282.91 | 33,556.63 | 998,733.75 | 0 | 18,599.73 | 8.41% | 47,771.71 | Depositedinfundsraisingaccount | 0 |
| Total | -- | 221,282.91 | 33,556.63 | 998,733.75 | 0 | 18,599.73 | 8.41% | 47,771.71 | -- | 0 |
| Explanationofoverallusageoffundsraised | ||||||||||
| PursuanttotheReplyofChinaSecuritiesRegulatoryCommissionontheApprovalofShenzhenChiwanWharfHoldingsLimitedOfferingSharestoChinaMerchantsInvestmentDevelopmentCompanyLimitedforAssetAcquisitionandRaisingtheMatchingFunds(ZJXK[2018]No.1750),theCompanyissued,inaprivateplacement,atotalof128,952,746sharesofRMB-denominatedordinaryshares(A-shares)totwoentitiesincludingChina-AfricaDevelopmentFundatRMB17.16/share,raisingatotalofRMB2,212,829,121.36(withthenetamountafterdeductingissuancecostsbeingRMB2,185,997,340.15).Followingthearrivaloftheaforesaidfundson23October2019,BDOChinaShuLunPanCertifiedPublicAccountantsLLPissuedaCapitalVerificationReport(XKSBZ[2019]No.ZI10673).Asof30June2022,atotalofRMB9,987,337,466.33ofraisedfundshadbeenused,including:(1)RMB582,722,414.48asthereplacementfortheself-financingsthathadbeeninadvanceinputintoprojecttobefinancedbyraisedfunds;(2)RMB1,177,783,270.64usedafterthearrivaloftheraisedfunds,includinganinvestmentofRMB1,177,783,270.64intheHaixingHarborRenovationProject(PhaseII)(2019:RMB324,533,139.29;2020:RMB424,734,590.46;2021:RMB262,949,228.42;H12022:RMB165,566,312.47);(3)RMB26,831,781.21forpayingissuancecosts;(4)RMB7,130,000,000.00forpurchasingstructureddeposits(2019:RMB1,200,000,000.00;2020:RMB2,650,000,000.00;2021:RMB3,280,000,000.00);(5)RMB1,070,000,000.00forpurchasingsevendayscalldeposits(2021:RMB900,000,000.00;H12022:RMB170,000,000.00).Asof30June2022,theinterestincomeintheaccountofraisedfundsminusservicechargesstoodatRMB5,701,443.94(2019:RMB795,775.14;2020:RMB1,142,652.22;2021:RMB513,577.57;H12022:RMB3,249,439.01);theamountofstructureddepositsredeemedwasRMB7,130,000,000.00(2019:RMB100,000,000.00;2020:RMB2,950,000,000.00;2021:RMB4,080,000,000.00);theamountofincomefromstructureddepositswasRMB41,738,931.50(2019:RMB302,465.75;2020:RMB28,538,767.13;2021:RMB12,897,698.62);theamountofsevendayscalldepositsredeemedwasRMB920,000,000.00(2021:RMB900,000,000.00;H12022:RMB20,000,000.00);andtheamountofincomefromsevendayscalldepositswasRMB4,785,085.42(2021:RMB4,756,502.08;H12022:RMB28,583.34).Asof30June2022,thebalanceintheaccountofraisedfundswasRMB477,717,115.89. | ||||||||||
(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) | N/A | N/A |
| TransformationprojectofHaixingHarbor(PhaseII) | No | 200,000 | 218,599.73 | 16,556.63 | 176,050.57 | 80.54% | 28June2021 | 9,217.32 | Yes | No |
| Subtotalofcommittedinvestmentproject | -- | 218,599.73 | 218,599.73 | 16,556.63 | 176,050.57 | -- | -- | 9,217.32 | -- | -- |
| Superraisefundarrangement | ||||||||||
| N/A | ||||||||||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Subtotalofsuperraisefundarrangement
| Subtotalofsuperraisefundarrangement | -- | - | - | - | - | -- | -- | 0 | -- | -- |
| Total | -- | 218,599.73 | 218,599.73 | 16,556.63 | 176,050.57 | -- | -- | 9,217.32 | -- | -- |
| Conditionandreasonfornotreachingthescheduleandanticipatedincome(byspecificitems) | Note1:BasedontheestimatedconstructionprogressofsupportingtransformationprojectofHanPort,USD79millionandUSD281millionwereplannedtobeusedtobuildanoilwharfandatankarearespectivelyin2019and2020;USD12.48millionandUSD179.6millionwereplannedtobeusedtoacquirequaycranes,yardcranesandotheroperatingequipmentrespectivelyin2019and2020.Thefundswereestimatedtobefullyspentby2020.Sofartheprojecthasbeendelayed.AccordingtotheCompany’soveralldevelopmentplanning,inordertofurtheroptimizeitsinternalresourceallocation,increasetheutilizationefficiencyoffundsandsafeguardshareholders’rightsandinterests,theCompanyusedRMB185,997,300ofthefundraisedintransformationprojectofHaixingHarbor(PhaseII).Asof30June2022,atotalofRMB0hadbeeninvestedinsupportingtransformationprojectofHanPort. | |||||||||
| 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. | |||||||||
| Useofidleraisedfundsforcashmanagementpurposes | On22November2019,the11thExtraordinaryMeetingofthe9thBoardofDirectorsin2019reviewedandapprovedtheProposalontheImplementationofCashManagementbytheUsageofIdleRaisedFunds,whichagreedtheCompanytocarryoutcashmanagementbyusingidlefundsofnomorethanRMB1.2billion.Thequotawasvalidwithin12monthsofthedatewhenthesaidproposalwasapprovedbytheBoard.Andthecashmanagementamountwouldbereturnedtotheaccountofraisedfundsupontheexpiry.On30November2020,theSecondExtraordinaryMeetingofthe10thBoardofDirectorsin2020andtheSecondExtraordinaryMeetingofthe10thSupervisoryCommitteein2020reviewedandapprovedtheProposalontheImplementationofCashManagementbytheUsageofIdleRaisedFunds,whichagreedtheCompanytocarryoutcashmanagementbyusingidlefundsofnomorethanRMB800million.Thequotawasvalidwithin12monthsofthedatewhenthesaidproposalwasapprovedbytheBoard.Andthecashmanagementamountwouldbereturnedtotheaccountofraisedfundsupontheexpiry.On23December2021,the13thMeetingofthe10thBoardofDirectorsin2021andthe7thExtraordinaryMeetingofthe10thSupervisoryCommitteein2021reviewedandapprovedtheProposalontheImplementationofCashManagementbytheUsageofIdleRaisedFunds,whichagreedtheCompanytocarryoutcashmanagementbyusingidlefundsofnomorethanRMB600milliononarollingbasiswithin12monthsoftheapprovalofthesaidproposalbytheBoardofDirectors.Asof30June2022,theCompanyhaspurchasedRMB7,130,000,000.00ofstructureddepositsandRMB1,070,000,000.00ofsevendayscalldeposits(2019:RMB1,200,000,000.00ofstructureddeposits;2020:RMB2,650,000,000.00ofstructureddeposits;2021:RMB3,280,000,000.00ofstructureddepositsandRMB900,000,000.00ofsevendayscalldeposits;H12022:RMB170,000,000ofsevendayscalldeposits)atCMBShenzhenNewTimesSub-branchwithtemporarilyidleraisedfunds.ThepurchasedRMB7,130,000,000.00ofstructureddepositsandRMB920,000,000.00ofsevendayscalldepositshavebeenredeemed(2019:RMB100,000,000.00ofstructureddeposits;2020:RMB2,950,000,000.00ofstructureddeposits;2021:RMB4,080,000,000.00ofstructureddepositsandRMB900,000,000.00ofsevendayscalldeposits;H12022:RMB20,000,000ofsevendayscalldeposits).TheamountofincomefromstructureddepositswasRMB41,738,931.50(2019:RMB302,465.75;2020:RMB28,538,767.13;2021:RMB12,897,698.62).TheamountofincomefromsevendayscalldepositswasRMB4,785,085.42(2021:RMB4,756,502.08;H12022:RMB28,583.34).Sofar,exceptfortheoutstandingprincipalbalanceofRMB150,000,000.00ofsevendayscalldeposits,thestructureddepositsandsevendayscalldepositspurchasedwithCMBShenzhenNewTimesSub-branchhavebeenrecovereduponmaturity. | |||||||||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Amountofsurplusinprojectimplementationandthereasons
| Amountofsurplusinprojectimplementationandthereasons | N/A |
| Usageanddestinationofunusedfunds | Unusedfundwasdepositedinthefund-raisingaccount. |
| Problemsincurredinfundusinganddisclosureorothercondition | N/A |
(3)ChangesinItemsofFundsRaised
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIISaleofMajorAssetsandEquityInvestments
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInvestments
□Applicable√NotapplicableVIIIPrincipalSubsidiariesandJointStockCompaniesPrincipalsubsidiariesandjointstockcompanieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
| ShanghaiInternationalPort(Group)Co.,Ltd. | Jointstockcompany | Businessrelatedtoport,containerandterminal | 23,284,144,750.00 | 175,957,234,631.14 | 113,976,931,571.21 | 20,094,438,005.89 | 12,786,100,821.55 | 11,182,647,136.56 |
| ChinaMerch | Subsi | Portbusi | 44,016,586,625.24 | 146,309,516,733.92 | 101,020,320,911.58 | 5,454,127,408.32 | 5,043,474,916.24 | 4,517,046,368.18 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
antsPortHoldingsCompanyLimited
| antsPortHoldingsCompanyLimited | diary | ness,bondedlogisticsandpropertyinvestment | (HKD) |
SubsidiariesobtainedordisposedofintheReportingPeriod:
| Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
| PortDevelopment(HongKong)Co.,Ltd. | Newlyincorporated | Adjustmentofshareholdingstructurewithinthescopeofconsolidatedstatements |
Otherinformationonprincipalsubsidiariesandjointstockcompanies:
ThereisnootherinformationontheCompany’sprincipalsubsidiariesandjointstockcompaniesintheReportingPeriodthatisrequiredtobedisclosed.IXStructuredBodiesControlledbytheCompany
□Applicable√NotapplicableX.RisksexposedbytheCompanyandcountermeasures
1.RiskofmacroeconomicfluctuationsInternationally,theglobaleconomicsituationin2022remainscomplex,andtheincreaseinuncertaintiesanddestabilizingofglobaleconomicrecoverycausedbyresurgenceoftheglobalCOVID-19outbreaksandthefrequentoccurrenceof“blackswanevents”suchasRussia-UkraineConflict.Riskslikedrasticfluctuationofglobalcommodityprices,inflationindevelopedcountries,frequentlyincreaseofU.S.interestrate,debtcrisisriseninemergingmarketsandtheincreaseofgeopoliticalriskshaveincreasedtheuncertaintiesinglobalmacroeconomictrade,strikingablowagainstourforeigntrademarket,containershippingmarketandbulkmarketandbroughtcertainchallengestotheoverseasoperationandinvestmentoftheCompany.Domestically,China’seconomicrecoveryfacesthesamesituationabove.Therecurrenceofthepandemic,China-U.S.contradictions,reconstructionofglobalindustrialsupplychainandotherfactorsbringuncertaintiesagainsttheeconomicgrowth.Inthefirsthalfoftheyear,ongoingimpactofShanghaioutbreakextendedtothedomesticimportandexporttrading.Inaddition,thegradualtransferofsomelow-technologyindustriestoemergingmarketssuchasSoutheastAsiahasputtedpressureontherecoveryofdomestictrade.Moreover,asthecountryisawareoftheimportanceofscientificandtechnologicalinnovationduringthepandemicoutbreak,aseriesofsupportingpoliciesforscientificandtechnologicalinnovationhavebeenlaunchedwithprioritytoscientificandtechnologicalinnovationofwork,enhancingthenecessityandurgencyofdigitalupgradeintheshippingindustry.Facingtheriskofmacroeconomicfluctuations,especiallythepandemicresurgence,greatlyfluctuationofinternationalexchangerateaswellasraisingpricesofenergyandbulkcommodity,
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
imposethetradingwithuncertaintiesthattheCompanywillidentifyscientificallyandgiveanactiveandproactiveresponses.Wewill(1)fullyimplementthenational"14thFive-YearPlan",graspthenewstageofdevelopment,vigorouslypromotethetransformationandupgradingoftheport,andfacilitatetheCompanytothehigh-qualitydevelopment;(2)fullyimplementthenationalstrategiessuchasthe“BeltandRoad”initiative,theNationalUnifiedMarket,theGuangdong-HongKong-MacaoGreaterBayArea,andthedevelopmentofYangtzeRiverDelta,andactivelyparticipateinbuildinganewnationaldualcirculationdevelopmentpattern;(3)seizetheopportunityofthenewroundofhigh-levelopening-uppolicywithactivelyintegratethedevelopmenttrendofeconomicglobalization,improvequalityandincreaseefficiencyofport-relatedbusinessandcontinuouslyimprovethequalityofportservices;(4)continuetoenhancecapacitybuildingofriskidentification,warningsandelimination,keepaneyeoninternationalgeopoliticaldevelopment,followupwiththereconstructionofglobalindustrialsupplychain,activelyspecializeintrademovementstoadjusttheCompany'sbusinessstrategiesinatimelymannerandpreventtheoccurrenceofmajorexternalriskevents.
2.PolicyrisksThereisadiversityofpolicyrisksintheportindustry.Internationally,aseriesofeventssuchaslabornegotiationsatbusyportsinEuropeandtheU.S.andtradesanctionsagainstRussiabyEUcountrieshavecreatedunpredictablepolicyrisksfortheportindustry.Domestically,underthenewnationaldualcirculationdevelopmentpattern,Chinaadherestoitsopening-uppolicyandhaslaunchedaseriesofpowerfulandfavorableimportandexportpoliciesthatwillhelptheportindustrygrowfrommoretransactions,andnationalstrategiessuchasthe“BeltandRoad”initiative,theGuangdong-HongKong-MacaoGreaterBayAreaandthedevelopmentofYangtzeRiverDeltawillintroducefavorablepoliciestotheindustrialdevelopment.However,nationalpolicyinitiativessuchasthepromotionofcostsavingsandefficiencygainsinlogisticsmayhaveanimpactontherevenueoftheportindustry.Facingthepotentialpolicyrisks,ontheonehand,theCompanywillactivelystrengthenthepolicyresearch,proactivelyrespondtomajornationalinitiativesandnationalstrategies,andgrasppolicyopportunitieswithpolicyasthemaingrip.Ontheotherhand,theCompanywillcontinuetoimprovequalityandincreaseefficiency,strengthenrationalallocationofresources,enhanceoperationalmanagementthroughinnovativetechnologyandindustrydigitization,activelyseeknewfuturegrowthandimprovesustainableprofitability.
3.OperationmanagementrisksAmidstthefavorableenvironmentofdomesticandoverseasregionalportsintegration,theCompanyhasswiftlystrengtheneditsmainportbusiness,fullygraspingtheinvestmentopportunitiesintheinternationalmarketandfurtheroptimizingthelayoutoftheCompany'sportnetworkinandoutofChinathroughinvestmentandmergersandacquisitions.Atthesametime,theCompanyisalsofacingnegativeconditionssuchasincreaseddifficultiesintheoperationandmanagementofportsinsomeregionsandlowerreturnsoninvestmentandoperationalefficiency.Themainrisksinclude:(1)theuncertaintyandcomplexityoftheforeignanddomesticoperatingandmanagementenvironment,whichfurtherincreasestheriskofinvestmentdecisionsandthe
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
difficultyofinvestmentinvariousprojects;(2)theinternationalexchangeratefluctuatedsignificantlyinthefirsthalfoftheyear,withtheRMBexchangeraterisingandthenfallinginlinewiththetrendoftheinternationalmarket,andthenremainedanormalizationofbi-directionalvolatilitycondition,andtheexchangeratesofsomedevelopedcountriesandemergingmarketsalsoenteredadownwardpath;(3)theinternationaloperationmanagementsystemneedstobeimproved,andtheCompanyshalltaketheinitiativetoimprovetheoveralloperationalefficiencytomeettheneedsarisingfromtherapiddevelopmentandexpansionoftheenterprises;(4)westillneedtocontinuetobuildasoundcorporateriskcontrolsystemtoenhanceourabilitytocopewithrisks.InviewoftheCompany'sinternalbusinessmanagementrisks,wewill(1)paycloseattentiontotheregularpandemicpreventionandcontrol,fullyimplementthenationalanti-pandemicrequirementsandensuretheachievementoftheannualbusinessobjectives;(2)increasecustomerloyaltybasedonthreeimprovementelements,namely“market,resources,services”,taketheinitiativetoidentifynewcustomersandgraspmarketopportunities;(3)improvetheconstructionoftheinternalcontrolandcompliancesystem,strengthenthelegalempowermentofbusinesscapabilities,ensuringeffectiveriskidentificationandcontrolandconsolidatingthefoundationofriskcontrol;(4)improvetheriskwarningsystem,accuratelygraspthedevelopmentsituation,earlyidentifyimportantorsignificantrisksandseizetheinitiativewhilepreventingandcontrollingrisksoptimizeriskwarningsystemtopreciselykeepabreastofthenewdevelopmentswithanaimtoearlyidentifyimportantorsignificantrisksandseizetheprimeopportunitiesforriskcontrol.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartIVCorporateGovernanceIAnnualandExtraordinaryGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
Meeting
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Indextodisclosedinformation |
| The2021AnnualGeneralMeeting | AnnualGeneralMeeting | 88.89% | 21April2022 | 22April2022 | Seetheresolutionannouncement(No.2022-040)onwww.cninfo.com.cn |
| The1stExtraordinaryGeneralMeetingof2022 | ExtraordinaryGeneralMeeting | 88.84% | 27May2022 | 28May2022 | Seetheresolutionannouncement(No.2022-051)onwww.cninfo.com.cn |
2.ExtraordinaryGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√NotapplicableIIChangeofDirectors,SupervisorsandSeniorManagement
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| YanShuai | Director | Left | 25February2022 | Jobchange |
| HuQin | Supervisor | Left | 25February2022 | Retirement |
| ZhangYiming | ViceGM | Left | 11April2022 | Jobchange |
| ZhangRui | Director | Elected | 21April2022 | Elected |
| YanGang | Director | Elected | 21April2022 | Elected |
| FuBulin | Supervisor | Elected | 21April2022 | Elected |
| SongDexing | Director | Left | 25May2022 | Jobchange |
| YanGang | COO,GM | Left | 25May2022 | Jobadjustment |
| YanGang | ViceChairman | Elected | 27May2022 | Elected |
| XuSong | COO,GM | Engaged | 27May2022 | Engaged |
IIIInterimDividendPlan
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
IVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployeesTheCompany’sreviewandapprovalprocedurescarriedoutinconnectionwiththeStockOptionIncentivePlanareasfollows:
(1)The1
stExtraordinaryMeetingofthe10
thBoardofDirectorsin2022and1
stExtraordinaryMeetingofthe10
thSupervisoryCommitteein2022oftheCompany,heldon28January2022,reviewedandapprovedtheProposalonAdjustingtheExercisePricesoftheStockOptionIncentivePlan(PhaseI)oftheCompany,theProposalonAdjustingtheNumbersofQualifiedAwardeesandStockOptionstoBeGrantedoftheStockOptionIncentivePlan(PhaseI)oftheCompany,theProposalontheFailuretoMeettheExerciseConditionsfortheFirstExerciseScheduleoftheStockOptions(theFirstBatchtobeGranted)oftheStockOptionIncentivePlan(PhaseI)oftheCompany,andtheProposalonCancelingSomeStockOptionsintheStockOptionIncentivePlan(PhaseI)oftheCompany.Independentdirectorsgaveindependentopinionsofagreement.TheSupervisoryCommitteeoftheCompanyverifiedtheproposalsandgaveopinions.Fordetails,seetherelevantannouncementsdisclosedbytheCompanyonCninfo(www.cninfo.com.cn)(AnnouncementNo.2022-007,2022-008,2022-009,and2022-010).
(2)On14February2022,uponthereviewandconfirmationofShenzhenBranchofChinaSecuritiesDepositoryandClearingCorporationLimited,theCompanycompletedthecancellationofabovestockoptions.Formoredetails,pleaserefertotheAnnouncementonCompletingtheCancellationofSomeStockOptionsintheStockOptionIncentivePlan(PhaseI)oftheCompany(AnnouncementNo.2022-011)disclosedbytheCompanyonCninfo(www.cninfo.com.cn).
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartVEnvironmentalandSocialResponsibility
IMajorEnvironmentalIssues
1.PollutionDischarge
Nameofthecompan
yorsubsidi
arycompany
| Nameofthecompanyorsubsidiarycompany | Namesofmajorandcharacteristicpollutants | Dischargemethod | Outletquantity | Outletdistribution | Dischargeconcentration(mg/kg) | Pollutantdischargestandards | Totaldischarge | Totaldischargeapproved | Excessivedischarge |
| ThethirdbranchofZhanjiangPort(Group)Co.,Ltd.(Keysoilsupervisionunit) | Arsenic | -- | -- | -- | 9.65 | SoilEnvironmentalQuality—StandardsforSoilContaminationRiskControlofLandforConstruction(Provisional)(GB36600-2018)—StandardsforCategoryIILandUse | -- | -- | Noexcessivedischarge |
| Cadmium | -- | -- | -- | 0.24 | -- | -- | |||
| Chromium(hexavalent) | -- | -- | -- | ND | -- | -- | |||
| Copper | -- | -- | -- | 54 | -- | -- | |||
| Lead | -- | -- | -- | 19 | -- | -- | |||
| Mercury | -- | -- | -- | 0.092 | -- | -- | |||
| Nickel | -- | -- | -- | 19 | -- | -- | |||
| Petroleumhydrocarbons(C10-C40) | -- | -- | -- | 9 | -- | -- | |||
| pH(dimensionless) | -- | -- | -- | 7.11 | -- | -- | |||
| Moisture | -- | -- | -- | 11.3% | -- | -- | |||
| Carbontetrachloride | -- | -- | -- | ND(Thatis,thelowestvaluethatcanbedetectedwiththespecifieddetectionmethod.Inotherwords,avaluelowerthanthisvaluecannotbedetectedwiththemethod) | -- | -- |
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Chloroform
| Chloroform | -- | -- | -- | ND | -- | -- | |
| Methylchloride | -- | -- | -- | ND | -- | -- | |
| 1,1-Dichloroethane | -- | -- | -- | ND | -- | -- | |
| 1,2-Dichloroethane | -- | -- | -- | ND | -- | -- | |
| 1,1-Dichloroethylene | -- | -- | -- | ND | -- | -- | |
| Cis-1,2-dichloroethylene | -- | -- | -- | ND | -- | -- | |
| Trans-1,2-dichloroethylene | -- | -- | -- | ND | -- | -- | |
| Dichloromethane | -- | -- | -- | ND | -- | -- | |
| 1,2-Dichloropropane | -- | -- | -- | ND | -- | -- | |
| 1,1,1,2-Tetrachloroethane | -- | -- | -- | ND | -- | -- | |
| 1,1,2,2-Tetrachloroethane | -- | -- | -- | ND | -- | -- | |
| Tetrachloroethylene | -- | -- | -- | ND | -- | -- | |
| 1,1,1-Trichloroethane | -- | -- | -- | ND | -- | -- |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
1,1,2-Trichloroethane
| 1,1,2-Trichloroethane | -- | -- | -- | ND | -- | -- | |
| Trichloroethylene | -- | -- | -- | ND | -- | -- | |
| 1,2,3-Trichloropropane | -- | -- | -- | ND | -- | -- | |
| Vinylchloride | -- | -- | -- | ND | -- | -- | |
| Benzene | -- | -- | -- | ND | -- | -- | |
| Chlorobenzene | -- | -- | -- | ND | -- | -- | |
| 1,2-Dichlorobenzene | -- | -- | -- | ND | -- | -- | |
| 1,4-Dichlorobenzene | -- | -- | -- | ND | -- | -- | |
| Ethylbenzene | -- | -- | -- | ND | -- | -- | |
| Styrene | -- | -- | -- | ND | -- | -- | |
| Toluene | -- | -- | -- | ND | -- | -- | |
| M-para-xylene | -- | -- | -- | ND | -- | -- | |
| O-xylene | -- | -- | -- | ND | -- | -- | |
| Nitrobenzene | -- | -- | -- | ND | -- | -- | |
| Aniline | -- | -- | -- | ND | -- | -- | |
| 2-Chlorophenol | -- | -- | -- | ND | -- | -- | |
| Benzo(a)anthracene | -- | -- | -- | ND | -- | -- | |
| Benzo(a)pyrene | -- | -- | -- | ND | -- | -- | |
| Benzo(b) | -- | -- | -- | ND | -- | -- |
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fluoranthene
| fluoranthene | |||||||||
| Benzo(k)fluoranthene | -- | -- | -- | ND | -- | -- | |||
| 1,2-Benzophenanthrene | -- | -- | -- | ND | -- | -- | |||
| Dibenzo(a,h)anthracene | -- | -- | -- | ND | -- | -- | |||
| Indeno(1,2,3-cd)pyrene | -- | -- | -- | ND | -- | -- | |||
| Naphthalene | -- | -- | -- | ND | -- | -- | |||
| ThefirstbranchofZhanjiangPort(Group)Co.,Ltd.(Keysoilsupervisionunit) | Arsenic | -- | -- | -- | 4.64 | SoilEnvironmentalQuality—StandardsforSoilContaminationRiskControlofLandforConstruction(Provisional)(GB36600-2018)—StandardsforCategoryIILandUse | -- | -- | Noexcessivedischarge |
| Cadmium | -- | -- | -- | 0.06 | -- | -- | |||
| Chromium(hexavalent) | -- | -- | -- | ND | -- | -- | |||
| Copper | -- | -- | -- | 15 | -- | -- | |||
| Lead | -- | -- | -- | 16.5 | -- | -- | |||
| Mercury | -- | -- | -- | 0.02 | -- | -- | |||
| Nickel | -- | -- | -- | 8 | -- | -- | |||
| Carbontetrachloride | -- | -- | -- | ND | -- | -- | |||
| Chloroform | -- | -- | -- | ND | -- | -- | |||
| Methylchloride | -- | -- | -- | ND | -- | -- | |||
| 1,1-Dichloroethane | -- | -- | -- | ND | -- | -- | |||
| 1,2-Dichloroethane | -- | -- | -- | ND | -- | -- | |||
| 1,1-Dichloroethylene | -- | -- | -- | ND | -- | -- | |||
| Cis-1,2- | -- | -- | -- | ND | -- | -- |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
dichloroethylene
| dichloroethylene | |||||||
| Trans-1,2-dichloroethylene | -- | -- | -- | ND | -- | -- | |
| Dichloromethane | -- | -- | -- | ND | -- | -- | |
| 1,2-Dichloropropane | -- | -- | -- | ND | -- | -- | |
| 1,1,1,2-Tetrachloroethane | -- | -- | -- | ND | -- | -- | |
| 1,1,2,2-Tetrachloroethane | -- | -- | -- | ND | -- | -- | |
| Tetrachloroethylene | -- | -- | -- | ND | -- | -- | |
| 1,1,1-Trichloroethane | -- | -- | -- | ND | -- | -- | |
| 1,1,2-Trichloroethane | -- | -- | -- | ND | -- | -- | |
| Trichloroethylene | -- | -- | -- | ND | -- | -- | |
| 1,2,3-Trichloropropane | -- | -- | -- | ND | -- | -- | |
| Vinylchloride | -- | -- | -- | ND | -- | -- | |
| Benzene | -- | -- | -- | ND | -- | -- | |
| Chlorobenzene | -- | -- | -- | ND | -- | -- |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
1,2-Dichlorobenzene
| 1,2-Dichlorobenzene | -- | -- | -- | ND | -- | -- | |
| 1,4-Dichlorobenzene | -- | -- | -- | ND | -- | -- | |
| Ethylbenzene | -- | -- | -- | ND | -- | -- | |
| Styrene | -- | -- | -- | ND | -- | -- | |
| Toluene | -- | -- | -- | ND | -- | -- | |
| M-para-xylene | -- | -- | -- | ND | -- | -- | |
| O-xylene | -- | -- | -- | ND | -- | -- | |
| Nitrobenzene | -- | -- | -- | ND | -- | -- | |
| Aniline | -- | -- | -- | ND | -- | -- | |
| 2-Chlorophenol | -- | -- | -- | ND | -- | -- | |
| Benzo(a)anthracene | -- | -- | -- | ND | -- | -- | |
| Benzo(a)pyrene | -- | -- | -- | ND | -- | -- | |
| Benzo(b)fluoranthene | -- | -- | -- | ND | -- | -- | |
| Benzo(k)fluoranthene | -- | -- | -- | ND | -- | -- | |
| 1,2-Benzophenanthrene | -- | -- | -- | ND | -- | -- | |
| Dibenzo(a,h)anthracene | -- | -- | -- | ND | -- | -- | |
| Indeno(1,2,3-cd)pyrene | -- | -- | -- | ND | -- | -- | |
| Naphthalene | -- | -- | -- | ND | -- | -- | |
| Petroleumhydrocarbons | -- | -- | -- | ND | -- | -- |
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(C10-C40)
| (C10-C40) | |||||||||
| pH | -- | -- | -- | 6.3 | -- | -- | |||
| Moisturecontent | -- | -- | -- | 11.3% | -- | -- | |||
| ZhanjiangPortPetrochemicalTerminalCo.,Ltd.(Keysoilsupervisionunitandotherkeypollutantdischargeunit) | Arsenic | -- | -- | -- | 1.69~22.6 | SoilEnvironmentalQuality—StandardsforSoilContaminationRiskControlofLandforConstruction(Provisional)(GB36600-2018)—StandardsforCategoryIILandUse | -- | -- | Noexcessivedischarge |
| Cadmium | -- | -- | -- | ND~0.22 | -- | -- | |||
| Chromium(hexavalent) | -- | -- | -- | ND | -- | -- | |||
| Copper | -- | -- | -- | ND~26 | -- | -- | |||
| Lead | -- | -- | -- | ND~85 | -- | -- | |||
| Mercury | -- | -- | -- | 0.077~0.200 | -- | -- | |||
| Nickel | -- | -- | -- | ND~19 | -- | -- | |||
| Carbontetrachloride | -- | -- | -- | ND | -- | -- | |||
| Chloroform | -- | -- | -- | ND | -- | -- | |||
| Methylchloride | -- | -- | -- | ND | -- | -- | |||
| 1,1-Dichloroethane | -- | -- | -- | ND | -- | -- | |||
| 1,2-Dichloroethane | -- | -- | -- | ND | -- | -- | |||
| 1,1-Dichloroethylene | -- | -- | -- | ND | -- | -- | |||
| Cis-1,2-dichloroethylene | -- | -- | -- | ND | -- | -- | |||
| Trans-1,2-dichloroethylene | -- | -- | -- | ND | -- | -- | |||
| Dichloromethane | -- | -- | -- | ND | -- | -- |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
1,2-Dichloropropane
| 1,2-Dichloropropane | -- | -- | -- | ND | -- | -- | |
| 1,1,1,2-Tetrachloroethane | -- | -- | -- | ND | -- | -- | |
| 1,1,2,2-Tetrachloroethane | -- | -- | -- | ND | -- | -- | |
| Tetrachloroethylene | -- | -- | -- | ND | -- | -- | |
| 1,1,1-Trichloroethane | -- | -- | -- | ND | -- | -- | |
| 1,1,2-Trichloroethane | -- | -- | -- | ND | -- | -- | |
| Trichloroethylene | -- | -- | -- | ND | -- | -- | |
| 1,2,3-Trichloropropane | -- | -- | -- | ND | -- | -- | |
| Vinylchloride | -- | -- | -- | ND | -- | -- | |
| Benzene | -- | -- | -- | ND | -- | -- | |
| Chlorobenzene | -- | -- | -- | ND | -- | -- | |
| 1,2-Dichlorobenzene | -- | -- | -- | ND | -- | -- | |
| 1,4-Dichlorobenzene | -- | -- | -- | ND | -- | -- | |
| Ethylbenzene | -- | -- | -- | ND | -- | -- |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Styrene
| Styrene | -- | -- | -- | ND | -- | -- | |
| Toluene | -- | -- | -- | ND | -- | -- | |
| M-para-xylene | -- | -- | -- | ND | -- | -- | |
| O-xylene | -- | -- | -- | ND | -- | -- | |
| Nitrobenzene | -- | -- | -- | ND | -- | -- | |
| Aniline | -- | -- | -- | ND | -- | -- | |
| 2-Chlorophenol | -- | -- | -- | ND | -- | -- | |
| Benzo(a)anthracene | -- | -- | -- | ND | -- | -- | |
| Benzo(a)pyrene | -- | -- | -- | ND | -- | -- | |
| Benzo(b)fluoranthene | -- | -- | -- | ND | -- | -- | |
| Benzo(k)fluoranthene | -- | -- | -- | ND | -- | -- | |
| 1,2-Benzophenanthrene | -- | -- | -- | ND | -- | -- | |
| Dibenzo(a,h)anthracene | -- | -- | -- | ND | -- | -- | |
| Indeno(1,2,3-cd)pyrene | -- | -- | -- | ND | -- | -- | |
| Naphthalene | -- | -- | -- | ND | -- | -- | |
| Petroleumhydrocarbons(C10-C40) | -- | -- | -- | 89 | -- | -- | |
| pH | -- | -- | -- | 8.24 | -- | -- | |
| 2,4-Dinitrophenol | -- | -- | -- | ND | -- | -- | |
| 2,4-Dichlorophenol | -- | -- | -- | ND | -- | -- |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Di(2-ethylhexyl)phthalate
| Di(2-ethylhexyl)phthalate | -- | -- | -- | ND | -- | -- | |
| Benzylbutylphthalate(BBP) | -- | -- | -- | ND | -- | -- | |
| Di-n-octylphthalate(DnOP) | -- | -- | -- | ND | -- | -- | |
| Polychlorinatedbiphenyl(PCB)(total) | -- | -- | -- | ND | -- | -- |
2.Constructionandoperationofpollutioncontrolfacilities
(1)ThefirstandthirdbranchesofZhanjiangPort(Group)Co.,Ltd.(hereinafterreferredtoas"ZhanjiangPort")havehardenedthebottomofthesoilofsomeplotsofstorageyards.
(2)Atpresent,thefirstbranchofZhanjiangPorthasaproductionsewagetreatmentplant,withatreatmentcapacityof5,800m
/d.Thetreatedsewageisusedforwateringanddustcontrolintheportarea.Thesewagetreatmentplantisundertrialoperationcurrently.ThethirdbranchofZhanjiangPorthasaproductionsewagetreatmentplant,withatreatmentcapacityof4,500m
/d.Thetreatedsewageisusedforwateringanddustcontrolintheportarea.Thesewagetreatmentplantisundertrialoperationcurrently.
(3)ZhanjiangPortPetrochemicalTerminalCo.,Ltd.hastwosetsofproductionwastewatertreatmentequipment.Thetreatedwastewaterisdischargedtotheseaafterreachingthestandard.Also,ithasasetofdomesticwastewatertreatmentfacilitiesundertrialoperationcurrently.
(4)BoththefirstandthirdbranchesofZhanjiangPortusewaterspray,watermistspray,sprinkler,andotherfacilitiestomeetthedemandfordustcontrolinallmassstockpilesandworkingplaces.Toreducedustemissionstothemaximum,thestockpilesarefullycovered,andthedustcontrolmanagementofstaticstorageanddynamicoperationisstrengthened.Particularly,thefirstbranchownsadust-freeandsound-proofwallwithalengthof160metersandaheightof12metersonthenorthernboundaryoftheplantandthethirdbranchhasawind-anddust-suppressionwall350meterslongandapproximately18metershigh.
(5)ThefirstandthirdbranchesofZhanjiangPortaswellasZhanjiangPortPetrochemicalTerminalCo.,Ltd.providesevenspecialroomsfortemporarystorageofhazardouswasteasrequired.Alltheroomsensuregroundseepageresistance,topwaterresistance,andsunresistanceandareequippedwithsurveillancevideointhesurroundingplaces.Aqualifiedthirdpartyisentrustedtotransportthewasteintime.Thissystemisinnormaloperation.
3.AssessmentoftheenvironmentalimpactofconstructionprojectsandotheradministrativelicensesofenvironmentalprotectionAccordingtotherequirementsofrelevantlawsandregulations,thefirstandthirdbranchesofZhanjiangPort(Group)Co.,Ltd.,andZhanjiangPortPetrochemicalTerminalCo.,Ltd.providevariousdocumentssuchastheenvironmentalimpactreport,environmentalinspectionand
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
acceptancereport,andapprovalandlicensesofenvironmentalauthorities.Thereplydocumentsinclude:ReviewOpinionsoftheCurrentEnvironmentalImpactAssessmentReportoftheFirstBranchofZhanjiangPort(Group)Co.,Ltd.(DocumentZ.X.H.J.[2018]No.12);ReviewOpinionsoftheCurrentEnvironmentalImpactAssessmentReportoftheThirdBranchofZhanjiangPort(Group)Co.,Ltd.(DocumentZ.H.C.J.[2018]No.31);EnvironmentalImpactAssessmentReportoftheCurrentStatusofCrudeOilStorageTankFarmsofZhanjiangPortPetrochemicalTerminalCo.,Ltd.(DocumentZ.X.H.J.[2019]No.05);andEnvironmentalImpactAssessmentReportof1#TankFarmProjectofZhanjiangPortPetrochemicalTerminalCo.,Ltd.(DocumentZ.H.J.X.[2021]No.
6),etc.
4.ContingencyplanforenvironmentalemergenciesInordertoearnestlyimplementtheEmergencyResponseLawofthePeople'sRepublicofChina,otherrelevantlaws,regulationsanddocuments,andtoprevent,prepareforandrespondtoenvironmentalemergencies,aswellastoprotectthelivesandreducepropertylosses,ZhanjiangPort(Group)Co.,Ltd.preparesContingencyPlanforEnvironmentalEmergenciesofZhanjiangPort(Group)Co.,Ltd.andhascompletedthefilingofthisdocument(FilingNo.440803-2020-0036-H).Meanwhile,thefirstbranchhasformulateditsowncontingencyplanforenvironmentalemergenciesandcompletedthefilingofthisdocument(FilingNo.:440803-2021-0025-M).Thethirdbranchhasalsoprepareditsowncontingencyplanforenvironmentalemergenciesandcompletedthefilingofthisdocument(FilingNo.:440802-2022-0002-L).Additionally,ZhanjiangPortPetrochemicalTerminalCo.,Ltd.hasformulatedtheContingencyPlanforEnvironmentalEmergenciesofZhanjiangPortPetrochemicalTerminalCo.,Ltd.andhascompletedthefilingofthisdocument(FilingNo.:440803-2021-0040-H).
5.Environmentalself-monitoringprogramThefirstandthirdbranchesofZhanjiangPortaswellasZhanjiangPortPetrochemicalTerminalCo.,Ltd.entrustorganizationswithnationallyrecognizedqualificationstotestsoilandgroundwaterannuallyandperformenvironmentalmonitoringofwastewater,wastegas,andnoisequarterly.Withaccumulateddataandascientificoutlooktofurtherguideenvironmentalprotection,theCompanystrivestobeanenvironment-friendlyenterprisewhichpromotessocialharmony.
6.AdministrativepenaltiesforenvironmentalproblemsduringtheReportingPeriod
□Applicable√Notapplicable
7.OtherenvironmentalinformationthatshouldbedisclosedThefirstbranchofZhanjiangPort,inOctober2021,completedtheinvestigationofsoilcontaminationrisksintheportareaandformulatedareportonsuchinvestigation,whichhasbeenreviewedbyexpertsandsubmittedtotheZhanjiangMunicipalEcologyandEnvironmentBureau.Moreover,remediationmeasuresweredeveloped,accordingtotheabovereport.Ninesoilcontaminationriskswereidentifiedintotalin2021,whichhavebeenfullyremediedinJune2022.Concurrently,aself-monitoringplanforsoilandgroundwatercontaminationwasformulated.Accordingly,soilandgroundwatercontaminationaremonitoredannually.Theself-monitoringplanforsoilandgroundwatercontaminationfor2022isplannedtobeimplementedinAugust.ThethirdbranchofZhanjiangPort,in2021,completedtheinvestigationofsoilcontaminationrisksintheportareaandformulatedareportonsuchinvestigation,whichhasbeenreviewedbyexpertsandsubmittedtotheZhanjiangMunicipalEcologyandEnvironmentBureau.Moreover,remediationmeasuresweredeveloped,accordingtotheabovereport.Eightsoilcontaminationriskswereidentifiedandaremediationplanwasdeveloped.Theriskshavebeenfullyremediedin30
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May2022.Concurrently,aself-monitoringplanforsoilandgroundwatercontaminationwasformulated.Theannualself-monitoringofsoilandgroundwatercontaminationisplannedtobecarriedoutinAugust2022toensurethecompliancewithsoilqualityrequirements.ZhanjiangPortPetrochemicalTerminalCo.,Ltd.completedtheinvestigationreportonsoilcontaminationrisksbytheendofDecember2021,whichhasbeenreviewedbyexpertsandsubmittedtotheZhanjiangMunicipalEcologyandEnvironmentBureau.Fivesoilcontaminationriskswereidentifiedin2021,whichhavebeenfullyremediedinJune2022.Accordingtonationalregulationsandtheself-monitoringplan,aself-monitoringplanforsoilandgroundwatercontaminationshouldbeformulatedtoperformthemonitoringofsoilandgroundwatercontaminationannually.ThemonitoringforthisyearshouldbecompletedbytheendofDecember2022.
8.OtherinformationrelatedtoenvironmentalprotectionTheCompanyadheredtotheconceptof"lucidwatersandlushmountainsareinvaluableassets",andstrictlyimplementedthestate'sdecisionsandarrangementsonenergyconservationandenvironmentalprotection.Itstrengthenedthebottom-linethinkingandred-lineawareness,didwellinclimateriskprevisionandtotalenergyconsumptionandintensitycontrol,consolidatedthefoundation,strengthenedweaklinks,andsolvedprominentproblemsofenvironmentalpollution.Ithasmadecontributiontothestabilityofenergyconservationandenvironmentalprotection.
(1)Activelyrespondtoclimatechange:TheCompanyactivelyrespondedtothestate'slow-carbonenergyconservationpolicy,constantlyimproveditsenergyconservationandemissionreductionandenvironmentalmanagementsystem,andincreasedinvestmentinenvironmentalprotectionyearbyyear.Ithasstrengthenedeffortstoidentifyandrespondtoclimaterisks,continuedtopromotecleanandlow-carbondevelopment,andspreadadvancedconceptsofgreenandenvironmentalprotectiontocontributetothegoalof"carbonpeakingandcarbonneutrality".First,environmentalmanagementwasreinforced.TheCompanyconstantlyintensifiedthetop-leveldesignofgeneralstrategiesandorganizedthedevelopmentofaleadershipsystem.Additionally,thePoliciesfortheInvestigationandGovernanceofEnvironmentalPollutionEventsandRiskswereformulated,andtheSpecialContingencyPlanforEnvironmentalPollutionandtheManagementMeasuresforthePerformanceAssessmentofEnergyConservationandEnvironmentalProtectionwererevisedandimprovedtostrengthenthesupervisionandmanagementofenvironmentaleventsandrisksandpracticallyfulfilltheresponsibilityforenvironmentalprotection.Second,greateffortsweremadetoidentifyclimaterisks.TheCompanyadheredtotheguidingideologyof"preventionfirst,peopleorientation,scientificandtechnologicalimprovement,comprehensivemanagement".Itpromotedtheconstructionofanemergencycommandplatform,andmadeuseofthemeteorologicalsystemandinformationexchangemechanismestablishedbytheweatherearlywarningsystemandlocalmeteorologicaldepartmentstoimprovetheearlywarningandpreventioncapabilitiesofsuddenclimaterisks.Third,cleanandlow-carbondevelopmentwasthefocus.TheCompanyendeavoredtopromotetheuseofcleanenergyandlow-carbontechnologydevelopment,andcontinuedtopromotedistributedphotovoltaicpowergeneration,energy-savinglightingtransformation,changefromoilintoelectricityandothernewenergy-savingtechnologiesandproducts.Ithascontributedwisdomandexperiencetogreenwatertransport,andinterpretedtheconceptofgreen,energyconservationandenvironmentalprotectionwithpracticalactionstopromotethedevelopmentofgreenshipping.
(2)Adheretogreenoperation:theCompanycontinuedtostrengthenpollutionpreventionandcontrolinproductionandoperation,promotedrecyclingandreuseofresources,andstrengthened
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
theprotectionofbiodiversity.Itmadeactiveeffortstocreateanewecologyofgreenindustry,andbuildagreenecologicalport.Intermsofpollutioncontrol,theCompanystrictlyobservedtheLawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionbysolidWasteandotherenvironmentallawsandregulations.Ithascarriedoutenvironmentalprotectionworkcenteringonthegoalthat"totaldischargeofmajorpollutantscontinuestodecrease,environmentalrisksareeffectivelycontrolled,andtheenvironmentalprotectionandenergyconservationcontinuetoimprove".Moreeffortsweremadetopromoteinnovationinenvironmentalprotectiontechnologyandmonitoringmethodstoimprovetheoverallpollutionpreventionandcontrol.Intermsofsavingresources,theCompanyactivelyrespondedtothestate'scalltobuildaresource-savingenterprise,encouragedemployeestosavewaterandelectricityandgopaperless,andintegratedtheconceptofgreenofficeintoitsdailyoperation.Intermsofprotectingbiologicaldiversity,theCompanyattachedgreatimportancetotheharmonioussymbioticrelationshipbetweentheenterpriseandthelocalecologicalenvironmentsystem.TheCompanycontinuedtocarryoutecologicalcompensationactivitiesforbreedingandreleasingwater,monitorandprotectwhales,turtlesandgrassbanks.Thesiteselectionandenvironmentalimpactofnewprojectswereassessedstrictlyinaccordancewithrelevantrequirementstominimizetheimpactonthesurroundingenvironmentandpromotethesustainabledevelopmentofmarineundertakings.
(3)Transmitgreenvalue:Portisanimportantchannelforacitytoconnectwiththeworld.Developinggreenportsandtransmittinggreenvalueisaninevitablewaytoachievesustainabledevelopmentofports.TheCompanyactivelycarriedoutavarietyofgreencharitableactivities,passingontheconceptofgreenenvironmentalprotection.Thisaimstomakethesustainabledevelopmentconceptofgreen,low-carbonandenvironmentalprotectiondeeplyrootedinpeople'shearts.IICorporateSocialResponsibility(CSR)TheCompanyhighlightsandpracticescorporatesocialresponsibilities.Whileimprovingbusinessperformanceandcreatingbenefitsforshareholders,theCompanyearnestlyperformsitssocialresponsibilitiesforemployees,societyandenvironment,andpromotesthesustainabledevelopmentoftheenterpriseandsociety.Inthefirsthalfof2022,overseas,theCompanycontinuedtoshapethepublic-welfarebrand,"C-Blue".ThankstotheChinaMerchantsCharityFoundation,ColomboInternationalContainerTerminalsLtd.(CICT)andHambantotaInternationalPortGroup(HIPG)jointlyinitiatedtheprogram,"ChinaMerchantsSilkRoadLoveVillages",whichsuccessivelyachievedresultsinPannilaandKendavillages,SriLanka.Inthecontextoftheeconomicandsocialturmoilinthecountry,theCompanybroughtsupplies,technology,andhopetothelocalpeople.Ithastransformed"bloodtransfusion"into"bloodgeneration"andprobedintothepathtosustainabledevelopmentforoverseaspoverty-strickenvillages.Domestically,ZhanjiangPortcontinuedtopromoteruralrevitalization.Specifically,ithelpedDongshanVillage,Hai'anTown,XuwenCounty,updatetheprotectivefenceofthewatertowerandinvestedRMB600,000intargetedassistance.Meanwhile,itvigorouslyofferedvolunteerservices.Forinstance,ittookcareofleft-behindchildrenthroughthechildcarevolunteerserviceof"SpringBreezeforSeedlings",providedthefamiliesofmigrantworkersincentralizedresidenceswith"microassistance",andofferedvolunteerservicestocommunities,suchasthenucleicacidtestingofcommunityresidents.Particularly,theVolunteer
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
TeamoftheSouthChinaOperationCentercarriedout153volunteerservicesofnucleicacidtesting.Statistically,2,278volunteersserved3,417hoursandbenefiting489,000people.Theymadeimportantcontributionstopandemicpreventionandcontrolandpushedforwardthepolicy—"normalizationofpandemicpreventionandcontrol".NingboDaxieChinaMerchantsInternationalContainerTerminalCo.,Ltd.(CMICT)deepenedthepracticalactivityof"Idopracticalthingsforthemasses"byorganizingitsemployeestooffervolunteerservicestocommunities,suchasrepairinghomeappliancesandumbrellas,makingduplicatekeys,washingglasses,andsharpeningknives,whichwerewellreceivedbycommunityresidents.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartVISignificantEvents
ICommitmentsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOverdueatthePeriod-End
Commitment
| Commitment | Promisor | Typeofcommitment | Detailsofcommitment | Dateofcommitmentmaking | Termofcommitment | Fulfillment |
| Commitmentsmadeintimeofassetrestructuring | CMPID | Commitmentonrestrictiononsharetrading | 1.CMPortsharesobtainedbypurchasingassetswithsharesissuedthistimeareforbiddentobetransferredortransactedinthemarketbeforethelatteronebetweenthedatearising36monthsafterthedatewhenCMPortsharesgainedbyCMPIDbasedonthistransactionareregisteredunderthenameofCMPIDandthedatewhenfulfillmentofcompensationobligationssetforthintheImpairmentCompensationAgreementforIssuingSharesToPurchaseAssetssignedbyandbetweenCMPIDandCMPort,separatelyanditssupplementaryagreement(ifany)isover(exceptforrepurchasingorpresentingsharespursuanttoImpairmentCompensationAgreementforIssuingSharesToPurchaseAssetsanditssupplementaryagreement(ifany));2.IncaseofclosingpriceofCMPortstocksbeinglowerthanissuepriceforconsecutive20transactiondayswithin6monthsaftercompletionofthetransactionorsuchclosingpricebeinglowerthanissuepriceattheendofthe6thmonthaftercompletionofthetransaction,thelockupperiodofCMPortstocksheldbyCMPIDwillbeautomaticallylengthenedforatleast6months;3.CMPortshareswhichderivefromconsiderationsharesobtainedbyCMPIDbasedonthetransactionduringthelockupperiodduetoCMPortdistributingstockdividendandcapitalreserveconvertedintoincreasedcapitalshallbesubjecttothecommitmentregardingtheaboverestrictedstocktradeperiod;4.IncasethatthetransactionisplacedonfileforinvestigationandprosecutionbyjudiciaryauthoritiesaswellasregisteredandinvestigatedbyCSRCbecausefalserecord,misleadingstatementorimportantomissionhappenstoprovidedordisclosedinformation,CMPIDwon'ttransferitsshareswithrightsandinterestsatCMPortbeforecaseinvestigationconclusionisdrawn;5.Incasethatlockupperiodsetforthinthecommitmentisinconsistentwithregulatoryopinionsfromsecuritiesmarketsupervisiondepartmentorlockupperiodrequiredbyrelatedprovisions,CMPIDshalladjusttheabovelockupperiodpursuanttoregulatoryopinionsfromrelevantsecuritiesmarketsupervisiondepartmentandrelatedprovisions.6.Aftertheabovelockupperiodexpires,CMPIDshallobserveprovisionsoflawsandregulations,relatedrulesofShenzhenStockExchangeaswellasArticlesofAssociationofCMPortincaseofreducingsharesheldbyit. | 26December2018 | 25June2022 | Complete |
| Whetherfulfilledontime | Yes | |||||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofotherRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIIIrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes√NoTheinterimfinancialstatementsareunaudited.VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor’s“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor’s“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable√NotapplicableVIIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIIILegalMattersMajorlawsuitsandarbitrations:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters:
Basicinformation
| Basicinformation | Amountinvolved(RMB’0,000) | Whetherformedexpectedliabilities | Progress | Theresultsandinfluenceoflawsuits(arbitrations) | Executionofjudgment | Disclosuredate | Indextodisclosedinformation |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
ThesummaryofBrazilTCPcases(note)
| ThesummaryofBrazilTCPcases(note) | 24,063.11 | Partly | Unsettled | Lowrisk | - | - | - |
| Thesummaryofothermattersnotmetdisclosurestandardsofmajorlawsuits(arbitrations) | 77,369.00 | Partly | Unsettled | Lowrisk | - | - | - |
Note:refertoNotestoFinancialStatements-CommitmentsorContingencyfordetailsofBrazilTCPcases.
IXPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XCreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable√NotapplicableXIMajorRelated-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 |
| LiaoningPortGroupCo.,Ltd.anditssubsidiaries | Underthecontrolofultimateshareholder | Renderserviceandleasetorelatedparty,receiveserviceandleasefromrelatedparty | Lease,laborcost,informationserviceincome,etc. | Marketprice | 8,638.24 | 8,638.24 | 0.16% | 25,110.39 | No | Settledmonthly | 8,638.24 | 31March2022 | www.cninfo.com.cn(AnnouncementNo.2022-027) |
| SinotransLimitedanditssubsidiaries | Underthecontrolofultimateshareholder | Renderserviceandleasetorelatedparty,receiveservicefromrelatedparty | Laborcost,demurrage,lease,etc. | Marketprice | 18,515.35 | 18,515.35 | 0.38% | 27,245.14 | No | Settledmonthly | 18,515.35 | ||
| AntongHoldingsCo.,Ltd.anditssubsidiaries | Affiliatedlegalperson | Renderservicetorelatedparty,receiveserviceandlease | Laborcost,freightforwardingagent,Portservicecharge | Marketprice | 5,730.12 | 5,730.12 | 0.11% | 15,230.43 | No | Settledmonthly | 5,730.12 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
fromrelatedparty
| fromrelatedparty | |||||||||||||
| ChinaNanshanDevelopment(Group)Co.,Ltd.anditssubsidiaries | Underthecontrolofultimateshareholder | Renderserviceandleasetorelatedparty,receiveserviceandleasefromrelatedparty | Laborcost,leaseexpenseoflandandhouses | Marketprice | 8,013.22 | 8,013.22 | 0.15% | 13,423.66 | No | Settledmonthly | 8,013.22 | ||
| Total | -- | -- | 40,896.93 | -- | 81,009.62 | -- | -- | -- | -- | -- | |||
| Large-amountsalesreturnindetail | None | ||||||||||||
| GivetheactualsituationintheReportingPeriod(ifany)whereanestimatehadbeenmadeforthetotalvalueofcontinuingrelated-partytransactionsbytypetooccurintheReportingPeriod | TheProposalonRecognitionof2021DailyRelated-partyTransactionandtheForecastof2022DailyRelated-partyTransactionwasreviewedandapprovedonthe2021AnnualGeneralMeetingon21April2022,whichallowedtheCompanyandsubsidiariestoconductdailybusinesstransactionincludingofficeleasing,providingorreceivinglaborservices.Theamountofdailyrelated-partytransactionsin2022isestimatedtobeRMB1.02billion.DuringtheReportingPeriod,therewasnosignificantdifferencebetweentheactualamountandtheestimatedamount. | ||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | N/A | ||||||||||||
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable√Notapplicable
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√Notapplicable
4.CreditsandLiabilitieswithRelatedPartiesCreditsreceivablewithrelatedparties
| 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) |
| ChinaMerchantsBank | Theultimatecontrollingshareholderhasmajorinfluenceonit | Bankdeposits/Structureddeposi | No | 346,432.58 | 3,911,472.33 | 3,770,219.99 | 1.65%-3.43% | 2,399.06 | 487,684.92 |
| EffectsofcreditswithrelatedpartiesontheCompany’soperatingresultsand | TheabovecreditsreceivablewithrelatedpartiesweremainlydepositsinfinancialinstitutionswhichhasnomajorinfluenceontheCompany’soperatingresultsandfinancialconditions. | ||||||||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
financialconditions
Liabilitiespayablewithrelatedparties:
financialconditions
Related
party
| Relatedparty | Relatedrelationship | Formingreason | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,000) | RecoveredintheReportingPeriod(RMB’0,000) | Interestrate | InterestintheReportingPeriod(RMB’0,000) | Endingbalance(RMB’0,000) |
| ChinaMerchantsBank | Theultimatecontrollingshareholderhasmajorinfluenceonit | Borrowing | 20,022.73 | 0.00 | 202.27 | 3.41% | 400.81 | 19,820.46 |
| EffectsofliabilitieswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheaboveliabilitiespayablewithrelatedpartiesweremainlyfinancialinstitutionloanswhichhadnomajorinfluenceontheCompany’soperatingresultsandfinancialconditions. | |||||||
5.TransactionswithRelatedFinanceCompaniesDepositbusiness
| Relatedparty | Relatedrelationship | Dailymaximumlimits(RMB’0,000) | Interestraterange | Beginningbalance(RMB’0,000) | Actualamount | Endingbalance(RMB’0,000) | |
| Totaldepositedamount(RMB’0,000) | Totalwithdrawnamount(RMB’0,000) | ||||||
| ChinaMerchantsGroupFinanceCo.,Ltd. | Othercompanyunderthesamecontrolofactualcontroller | 500,000.00 | 1.495%-2.1% | 217,830.37 | 773,118.33 | 835,637.66 | 155,311.04 |
Loanbusiness
| Relatedparty | Relatedrelationship | Loanlimit(RMB’0,000) | Interestraterange | Beginningbalance(RMB’0,000) | Actualamount | Endingbalance(RMB’0,000) | |
| Totalloanamount(RMB’0,000) | Totalrepaidamount(RMB’0,000) | ||||||
| ChinaMerchantsGroupFinanceCo.,Ltd. | Othercompanyunderthesamecontrolofcontrollingshareholder | 1,000,000.00 | 1.2%-5.5125% | 397,422.90 | 4,631.67 | 114,250.00 | 287,804.57 |
Creditorotherfinancebusiness
| Relatedparty | Relatedrelationship | Typeofbusiness | Totalamount(RMB’0,000) | Actualamount(RMB’0,000) |
| ChinaMerchantsGroupFinanceCo.,Ltd. | Othercompanyunderthesamecontrolofcontrollingshareholder | Credit | 1,000,000.00 | 287,804.57 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
6.TransactionswithRelatedPartiesbyFinanceCompanyControlledbytheCompany
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
7.OtherMajorRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(1)TheCompanyheldthe5
thmeetingofthe10
thBoardofDirectorson29March2022,andreviewedandapprovedtheProposalontheRelated-PartyTransactionsRegardingMakingDepositsinandObtainingLoansfromChinaMerchantsBankin2022,whichwassubmittedtothe2021AnnualGeneralMeetingoftheCompanyfordeliberation.TheCompanyheldthe2021AnnualGeneralMeetingon21April2022,anddeliberatedandapprovedtheProposalontheRelated-PartyTransactionsRegardingMakingDepositsinandObtainingLoansfromChinaMerchantsBankin2022,agreeingtheCompanyanditssubsidiariestoopenbankaccountswithChinaMerchantsBank.In2022,themaximumdepositbalanceoftheCompanyanditssubsidiarieswithChinaMerchantsBankshallnotexceedRMB15billion,andthemaximumcreditbalanceshallnotexceedRMB20billion.Fordetails,pleaserefertotheAnnouncementontheRelated-PartyTransactionsRegardingMakingDepositsinandObtainingLoansfromChinaMerchantsBankin2022(AnnouncementNo.2022-028)disclosedbytheCompanyon31March2022,theAnnouncementontheResolutionofthe2021GeneralMeetingofShareholders(AnnouncementNo.2022-040)disclosedbytheCompanyon22April2022andotherrelevantannouncements.
(2)TheCompanyheldthe5
th
Meetingofthe10
th
BoardofDirectorson29March2022,reviewingandapprovingtheProposalonRenewingtheFinancialServiceAgreementandRelatedPartyTransactionswithChinaMerchantsGroupFinanceCo.,Ltd.whichwassubmittedtothe2021AnnualGeneralMeetingoftheCompanyfordeliberation.TheCompanyheldthe2021AnnualGeneralMeetingon21April2022,reviewingandapprovingtheProposalonRenewingtheFinancialServiceAgreementandRelatedPartyTransactionswithChinaMerchantsGroupFinanceCo.,Ltd.andagreeingwiththerenewaloftheFinancialServiceAgreement,withatermofthreeyears,withChinaMerchantsGroupFinanceCo.,Ltd.("CMGFinance").Fordetails,pleaserefertotheAnnouncementontheRenewingtheFinancialServiceAgreementandRelatedPartyTransactionswithChinaMerchantsGroupFinanceCo.,Ltd.(AnnouncementNo.2022-030)disclosedbytheCompanyon31March2022,theAnnouncementontheResolutionofthe2021GeneralMeetingofShareholders(AnnouncementNo.2022-040)disclosedbytheCompanyon22April2022andotherrelevantannouncements.Informationonthedisclosurewebsiteforcurrentannouncementsonsignificantrelated-partytransactions:
Nameofprovisionalreports
| Nameofprovisionalreports | Disclosuredate | Website |
| AnnouncementontheRelated-PartyTransactionsRegardingMakingDepositsinandObtainingLoansfromChinaMerchantsBankin2022 | 31March2022 | www.cninfo.com.cn(AnnouncementNo.2022-028) |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
AnnouncementontheRenewingtheFinancialServiceAgreementandRelatedPartyTransactionswithChinaMerchantsGroupFinanceCo.,Ltd.
| AnnouncementontheRenewingtheFinancialServiceAgreementandRelatedPartyTransactionswithChinaMerchantsGroupFinanceCo.,Ltd. | 31March2022 | www.cninfo.com.cn(AnnouncementNo.2022-030) |
XIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)Entrustment
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.MajorGuarantees
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyanditssubsidiariesforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counterguarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| TerminalLinkS.A.S. | N/A | 6,850.90 | 11June2013 | 6,850.90 | Generalguarantee | Not | Not | About20years | Not | Yes |
| TerminalLinkSAS | 31March2022 | 10,809.65 | Not | Not | ||||||
| KingstonFreeportTerminalLimited | 31March2022 | 4,913.48 | Not | Not | ||||||
| KHORAMBADOFZCO | 30March2019 | 19,252.80 | 24May2019 | 11,590.11 | Joint-liability | Not | Not | About13years | Not | Yes |
| KHORAMBADOFZCO | 31March2021 | 7,000.00 | - | - | - | - | - | - | - | - |
| Totalapprovedline | 15,723.13 | Totalactualbalanceof | - | |||||||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
forsuchguaranteesintheReportingPeriod(A1)
| forsuchguaranteesintheReportingPeriod(A1) | suchguaranteesintheReportingPeriod(A2) | |||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(A3) | 41,826.83 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(A4) | 18,441.01 | |||||||
| GuaranteebetweentheCompanytoitssubsidiaries | ||||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counterguarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ChiwanWharfHoldings(HongKong)Limited | 31March2021 | 150,000.00 | 26Jul2021 | 120,000.00 | Joint-liability | Not | Not | About1year | Not | Not |
| ChiwanWharfHoldings(HongKong)Limited | 31March2022 | 190,000.00 | ||||||||
| PortDevelopment(Hongkong)CompanyLimited | 31March2022 | 200,000.00 | ||||||||
| ZhanjiangPort(Group)Co.,Ltd. | 31March2021 | 200,000.00 | - | - | - | - | - | - | - | - |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 390,000.00 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | - | |||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 540,000.00 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 120,000.00 | |||||||
| Guaranteesprovidedbetweensubsidiaries | ||||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate | Actualguaranteeamount | Typeofguarantee | Collateral(ifany) | Counterguarantee(ifany) | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ChinaMerchantsInternationalTerminal | 16April2020 | 59,010.00.00 | 1Jan2021 | 8,608.60 | Joint-liability | Not | Not | About2years | Not | Not |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
(Qingdao)Co.,LTD
| (Qingdao)Co.,LTD | ||||||||||
| ShenzhenJinyuRongtaiInvestmentdevelopmentCo.,LTD | N/A | 80,000.00 | 12Jan2017 | 60,000.00 | Joint-liability | Not | Not | About10years | Not | Not |
| ChinaMerchantsInternational(China)InvestmentCo.,LTD | N/A | 2,500.00 | 30Jun2016 | 2,500.00 | Joint-liability | Not | Not | About10years | Not | Not |
| ChinaMerchantsFinanceCompanyLimited | 4May2012 | 334,250.00 | 4May2012 | 334,250.00 | Generalguarantee | Not | Not | About10years | Not | Not |
| ChinaMerchantsFinanceCompanyLimited | 3Aug2015 | 334,250.00 | 3Aug2015 | 334,250.00 | Generalguarantee | Not | Not | About10years | Not | Not |
| CMHIFinance(BVI)Co.,Ltd | 6Aug2018 | 601,650.00 | 6Aug2018 | 601,650.00 | Generalguarantee | Not | Not | About5years | Not | Not |
| CMHIFinance(BVI)Co.,Ltd | 6Aug2018 | 401,100.00 | 6Aug2018 | 401,100.00 | Generalguarantee | Not | Not | About10years | Not | Not |
| CMHIFinance(BVI)Co.,Ltd | 26Sept2020 | 534,800.00 | 9Oct2020 | 401,100.00 | Generalguarantee | Not | Not | About3years | Not | Not |
| 133,700.00 | Generalguarantee | Not | Not | About5years | Not | Not | ||||
| CMHIFinance(BVI)Co.,Ltd | 31March2022 | 385,051.00 | 1Jun2022 | 34,250.00 | Generalguarantee | Not | Not | About5years | Not | Not |
| COLOMBOINTERNATIONALCONTAINERTERMINALSLIMITED | N/A | 15,055.29 | 16Sept2012 | 15,055.29 | Generalguarantee | Not | Not | About13years | Not | Not |
| COLOMBOINTERNATIONALCONTAINER | N/A | 4,679.50 | 16Sept2012 | 4,679.50 | Generalguarantee | Not | Not | Infinite | Not | Not |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
TERMINALSLIMITED
| TERMINALSLIMITED | ||||||||||
| COLOMBOINTERNATIONALCONTAINERTERMINALSLIMITED | N/A | 16,712.50 | 16Sept2012 | 16,712.50 | Generalguarantee | Not | Not | Infinite | Not | Not |
| LomeContainerTerminalsCo.,Ltd | N/A | 2,472.51 | 1Jun2015 | 649.03 | Generalguarantee | Not | Not | About9years | Not | Not |
| LomeContainerTerminalsCo.,Ltd | N/A | 2,472.51 | 1Jun2015 | 649.03 | Generalguarantee | Not | Not | About9years | Not | Not |
| LomeContainerTerminalsCo.,Ltd | N/A | 2,472.51 | 1Jun2015 | 649.03 | Generalguarantee | Not | Not | About9years | Not | Not |
| TCP-TERMINALDECONTElNERESDEPARANAGUAS/A. | N/A | 29,626.95 | 19April2018 | 11,850.78 | Generalguarantee | Not | Not | About6years | Not | Not |
| TCP-TERMINALDECONTElNERESDEPARANAGUAS/A. | N/A | 54,580.27 | 7Nov2016 | 38,205.82 | Generalguarantee | Not | Not | About6years | Not | Not |
| ShenzhenHaixinPortDevelopmentCo.,LTD | 30March2019 | 219,090.00 | 26Jun2019 | 22,035.14 | Joint-liability | Not | Not | About18years | Not | Not |
| ZhanjiangPort(Group)Co.,LTD | 31March2021 | 80,000.00 | 9Oct2021 | 19,800.00 | Joint-liability | Not | Not | About3years | Not | Not |
| ChinaMerchantsInternationalTerminal(Qingdao)Co.,LTD | 31March2021 | 60,000.00 | - | - | - | - | - | - | - | - |
| ChinaMerchant | 31March2022 | 10,000.00 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
sInternationalTerminal(Qingdao)Co.,LTD
| sInternationalTerminal(Qingdao)Co.,LTD | |||||||||||
| HambantotaInternationalPortGroupCo.LTD | 31March2021 | 100,000.00 | - | - | - | - | - | - | - | - | |
| CMHIFinance(BVI)Co.,Ltd | 31March2021 | 800,000.00 | - | - | - | - | - | - | - | ||
| TCP-TERMINALDECONTElNERESDEPARANAGUAS/A. | 31March2021 | 10,000.00 | - | - | - | - | - | - | - | - | |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(C1) | 395,051.00 | TotalactualamountofsuchguaranteesintheReportingPeriod(C2) | 334,250.00 | ||||||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(C3) | 2,835,523.04 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(C4) | 2,407,444.72 | ||||||||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | |||||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 800,774.12 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 334,250.00 | ||||||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 3,417,349.87 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 2,545,885.73 | ||||||||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassets | 61.77% | ||||||||||
| Ofwhich: | |||||||||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 18,441.01 | ||||||||||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 2,746,481.84 | ||||||||||
| Amountbywhichthetotalguaranteeamount | 485,140.74 | ||||||||||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
exceeds50%oftheCompany’snetassets(F)
| exceeds50%oftheCompany’snetassets(F) | |
| Totalofthethreeamountsabove(D+E+F) | 3,250,063.59 |
| JointresponsibilitiespossiblyborneintheReportingPeriodforundueguarantees(ifany) | None |
| Provisionofexternalguaranteesinbreachoftheprescribedprocedures(ifany) | None |
3.CashEntrustedforWealthManagement
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.ContinuingMajorContracts
□Applicable√Notapplicable
5.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIIOtherSignificantEvents
1.PrivatePlacementofA-sharesandSubscriptionofSharesinNingboPortOn13July2021,theProposalonthePlanforPrivatePlacementofA-shares,theProposalonSubscriptionbytheCompanyasaStrategicInvestorofSharesinaPrivatePlacementofNingboZhoushanPortCompanyLimited&Related-partyTransaction,andotherrelevantproposalswereapprovedunanimouslyatthe6thExtraordinaryMeetingoftheCompany’s10thBoardofDirectorsin2021,andthe3rdExtraordinaryMeetingoftheCompany’s10thSupervisoryCommitteein2021,respectively.Assuch,theCompanywasagreedtointroduceZhejiangProvincialSeaportInvestment&OperationGroupCo.Ltd.(SeaportGroup)asastrategicinvestorbycarryingoutaprivateplacementof577,000,000A-shares(or30%oftheCompany’stotalsharecapitalbeforetheissue)toSeaportGrouptoraiseRMB10.917billion.Meanwhile,theCompanywasagreedtosubscribeforincash,asastrategicinvestor,3,646,971,029A-sharesinthe2021privateplacementofNingboZhoushanPortCompanyLimited(NingboPort).Forfurtherinformation,seeAnnouncementNo.2021-053ontheResolutionsofthe6thExtraordinaryMeetingofthe10thBoardofDirectorsin2021,AnnouncementNo.2021-054ontheResolutionsofthe3rdExtraordinaryMeetingofthe10thSupervisoryCommitteein2021,AnnouncementNo.2021-057onSubscriptionbytheCompanyasaStrategicInvestorofSharesinaPrivatePlacementofNingboZhoushanPortCompanyLimited&Related-partyTransaction,andotherrelevantannouncementsdisclosedbytheCompanydated14July2021.On26August2021,theCompanydisclosedthatithadreceivedtheReplyonthePrivatePlacement
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
ofA-sharesofChinaMerchantsPortGroupCo.,Ltd.(GuoZiChanQuan[2021]No.457)issuedbytheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil,whichinprincipleconsentedtotheplanoftheCompanyforaprivateplacementofnomorethan576,709,537A-sharestoZhejiangProvincialSeaportInvestment&OperationGroupCo.Ltd.(SS).Forfurtherinformation,seeAnnouncementNo.2021-070onApprovalofPrivatePlacementofA-sharesbySASACoftheStateCouncildisclosedbytheCompanydated27August2021.On27September2021,theproposalsinrelationtotheprivateplacementofA-shareswereapprovedatthe1stExtraordinaryGeneralMeetingoftheCompanyin2021.Forfurtherinformation,seeAnnouncementNo.2021-087onAnnouncementonResolutionsofthe1stExtraordinaryGeneralMeetingof2021disclosedbytheCompanydated28September2021.On15October2021,theCompanyreceivedtheAcceptanceFormforAdministrativeLicenseApplicationfromtheChinaSecuritiesRegulatoryCommission(AcceptanceNumber:212745),whichtellsthattheChinaSecuritiesRegulatoryCommissionhasexaminedtheapplicationmaterialssubmittedbytheCompanyforApprovalofNon-publicOfferingofSharesbyListedCompany(A-ShareMainBoardofShanghaiStockExchangeandShenzhenStockExchangeandBShares)anddecidedtoaccepttheapplicationforanadministrativelicense.On26October2021,theCompanyreceivedtheAnnouncementonReceivingtheNoticeofFeedbackontheExaminationofAdministrativeLicenseProject(No.212745)issuedbytheChinaSecuritiesRegulatoryCommission(hereinafterreferredtoasthe"Feedback"),whichtellsthattheChinaSecuritiesRegulatoryCommissionhasexaminedtheapplicationmaterialsforanadministrativelicenseofApprovalonNon-PublicOfferingofShares(A-ShareMainBoardofShanghaiStockExchangeandShenzhenStockExchangeandBShares)byListedCompanyofChinaMerchantsPortGroupCo.,Ltd.submittedbytheCompany,andrequiredtheCompanytomakewrittendescriptionsandexplanationsonrelevantissues,andsubmitawrittenreplytotheadministrativelicenseacceptancedepartmentoftheChinaSecuritiesRegulatoryCommissionwithin30days.On20November2021,theCompanyandrelevantintermediariescarefullycheckedandimplementedtheissueslistedintheFeedbackInaccordancewiththerequirementsofChinaSecuritiesRegulatoryCommission,andformedtheReplytotheFeedbackontheApplicationDocumentforthe2021Non-PublicOfferingofA-SharesofChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoasthe"ReplytotheFeedback")anddisclosedit.Fordetails,pleaserefertotheReplytotheFeedbackontheApplicationDocumentforthe2021Non-PublicOfferingofA-SharesofChinaMerchantsPortGroupCo.,Ltd.publishedonthesameday.TheCompanyhassubmittedtheReplytotheFeedbackandotherrelevantmaterialstoCSRCwithintwoworkingdaysafteritsdisclosure.On5July2022,theCompanyreceivedtheLetteronProperlyPreparingtheMeetingofthePublicOfferingReviewCommitteeoftheChinaSecuritiesRegulatoryCommissiononthePrivatePlacementofChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoasthe"Letter")fromtheChinaSecuritiesRegulatoryCommission(CSRC).TheCompany,togetherwithrelevantintermediaries,conscientiouslyverifiedandaddressedtheissuesmentionedintheLetter,asrequiredbytheCSRC.Uponresearch,demonstration,andanalysis,itrepliedtotheissueslisted.Fordetails,seetheReplytotheLetteronProperlyPreparingtheMeetingofthePublicOffering
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
ReviewCommitteeoftheChinaSecuritiesRegulatoryCommissiononthePrivatePlacementofChinaMerchantsPortGroupCo.,Ltd.andtheAnnouncementontheReplytotheLetteronProperlyPreparingtheMeetingofthePublicOfferingReviewCommitteeoftheChinaSecuritiesRegulatoryCommissiononthePrivatePlacement(AnnouncementNo.:2022-059)releasedbytheCompanyon14July2022.ThePublicOfferingReviewCommitteeoftheCSRC,on25July2022,reviewedtheapplicationfortheprivateplacementofASharessubmittedin2021bytheCompany.Theapplicationhasbeenapproved,accordingtotheresultofthereviewmeeting.Fordetails,seetheAnnouncementontheApprovalofthePublicOfferingReviewCommitteeoftheChinaSecuritiesRegulatoryCommissionfortheApplicationforthePrivatePlacementofASharesin2021(AnnouncementNo.:2022-061)disclosedbytheCompanyon26July2022.On1August2022,theCompanyreceivedtheApprovalofthePrivatePlacementofChinaMerchantsPortGroupCo.,Ltd.(ZJXK[2022]No.1657)issuedbytheCSRC.Fordetails,seetheAnnouncementontheApprovaloftheChinaSecuritiesRegulatoryCommissionfortheApplicationforthePrivatePlacementofASharesin2021(AnnouncementNo.:2022-062)disclosedbytheCompanyon2August2022.
2.IndextoDisclosedInformationThesignificanteventsdisclosedbytheCompanyonSecuritiesTimes,ChinaSecuritiesJournal,ShanghaiSecuritiesNews,TaKungPaoandwww.cninfo.com.cnduringtheReportingPeriodareasfollows:
Announcem
entNo.
| AnnouncementNo. | Dateoftheannouncement | Titleoftheannouncement |
| 2022-001 | 8January2022 | AnnouncementontheExitofInvestmentFund |
| 2022-002 | 15January2022 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofDecember2021 |
| 2022-003 | 15January2022 | ReminderoftheIssuanceof2022PhaseISuper-short-termFinancingBonds |
| 2022-004 | 20January2022 | AnnouncementonIssueResultsof2022PhaseISuper-short-termFinancingBonds |
| 2022-005 | 29January2022 | AnnouncementonResolutionsofthe1stSpecialMeetingofthe10thBoardofDirectorsin2022 |
| 2022-006 | 29January2022 | AnnouncementonResolutionsofthe1stSpecialMeetingofthe10thSupervisoryCommitteein2022 |
| 2022-007 | 29January2022 | AnnouncementonAdjustingtheExercisePricesoftheStockOptionIncentivePlan(PhaseI)oftheCompany |
| 2022-008 | 29January2022 | AnnouncementonAdjustingtheNumbersofQualifiedAwardeesandStockOptionstoBeGrantedoftheStockOptionIncentivePlan(PhaseI)oftheCompany |
| 2022-009 | 29January2022 | AnnouncementontheFailuretoMeettheExerciseConditionsfortheFirstExerciseScheduleoftheStockOptions(theFirstBatchtobeGranted)oftheStockOptionIncentivePlan(PhaseI)oftheCompany |
| 2022-010 | 29January2022 | AnnouncementonCancelingSomeStockOptionsintheStockOptionIncentivePlan(PhaseI)oftheCompany |
| 2022-011 | 15February2022 | AnnouncementonCompletingtheCancellationofSomeStockOptionsintheStockOptionIncentivePlan(PhaseI)oftheCompany |
| 2022-012 | 15February2022 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeData |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
ofJanuary2022
| ofJanuary2022 | ||
| 2022-013 | 1March2022 | AnnouncementonResolutionsofthe2ndSpecialMeetingofthe10thBoardofDirectorsin2022 |
| 2022-014 | 1March2022 | AnnouncementonResolutionsofthe2ndSpecialMeetingofthe10thSupervisoryCommitteein2022 |
| 2022-015 | 1March2022 | AnnouncementonResignationofDirectorandSupervisorandBy-electionofDirectorandSupervisor |
| 2022-016 | 2March2022 | ReminderoftheIssuanceof2022PhaseIISuper-short-termFinancingBonds |
| 2022-017 | 5March2022 | AnnouncementonIssueResultsof2022PhaseIISuper-short-termFinancingBonds |
| 2022-018 | 15March2022 | AnnouncementontheDuePaymentof2021PhaseVIISuper&Short-termCommercialPaper |
| 2022-019 | 15March2022 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofFebruary2022 |
| 2022-020 | 19March2022 | AnnouncementonProgressofIncorporationofHKWholly-ownedSubsidiaryandAdjustmenttoOwnershipStructureoftheSubsidiary |
| 2022-021 | 26March2022 | AnnouncementonOnlineInvestorMeetingon2021AnnualResults |
| 2022-022 | 26March2022 | ReminderoftheIssuanceof2022PhaseIIISuper-short-termFinancingBonds |
| 2022-023 | 31March2022 | AnnouncementonResolutionsofthe5thMeetingofthe10thBoardofDirectors |
| 2022-024 | 31March2022 | AnnouncementonResolutionsofthe5thMeetingofthe10thSupervisoryCommittee |
| 2022-025 | 31March2022 | Announcementon2021ProfitDistributionPlan |
| 2022-026 | 31March2022 | Abstractof2021AnnualReport(ChineseandEnglishVersions) |
| 2022-027 | 31March2022 | AnnouncementontheConfirmationoftheContinuingRelated-PartyTransactionsin2021andtheEstimationofSuchTransactionsin2022 |
| 2022-028 | 31March2022 | AnnouncementontheRelated-PartyTransactionRegardingMakingDepositsinandObtainingLoansfromChinaMerchantsBankin2022 |
| 2022-029 | 31March2022 |
AnnouncementontheExternalGuaranteeProgressofaMajority-OwnedSubsidiaryoftheCompanyin2021andtheExpectedNewExternalGuaranteeLineintheNext12Months
| 2022-030 | 31March2022 | AnnouncementonRenewingtheFinancialServiceAgreementandRelatedPartyTransactionswithChinaMerchantsGroupFinanceCo.,Ltd. |
| 2022-031 | 31March2022 | SpecialReportonDepositandUsageofRaisedFundin2021 |
| 2022-032 | 31March2022 | AnnouncementonReappointmentofAccountingFirmin2022 |
| 2022-033 | 31March2022 | NoticeonConveningthe2021AnnualGeneralMeeting |
| 2022-034 | 31March2022 | AnnouncementonProvisionforAssetImpairmentfor2021 |
| 2022-035 | 31March2022 | AnnouncementontheVoluntaryInformationDisclosureofthe2021AnnualResultsbytheMajority-OwnedSubsidiary |
| 2022-036 | 1April2022 | AnnouncementontheIssueResultsof2022PhaseIIISuper-short-termFinancingBonds |
| 2022-037 | 12April2022 | AnnouncementontheResignationofViceGMZhangYiming |
| 2022-038 | 15April2022 | AnnouncementontheVoluntaryInformationDisclosureofBusinessVolumeDataofMarch2022 |
| 2022-039 | 19April2022 | AnnouncementontheDuePaymentof2022PhaseISuper-short-termFinancingBonds |
| 2022-040 | 22April2022 | AnnouncementontheResolutionsof2021GeneralMeetingofShareholders |
| 2022-041 | 30April2022 | AnnouncementontheResolutionsofthe3rdExtraordinaryMeetingofthe10thBoardofDirectorsin2022 |
| 2022-042 | 30April2022 | AnnouncementontheResolutionsofthe3rdExtraordinaryMeetingofthe10thBoardofSupervisorsin2022 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
2022-043
| 2022-043 | 30April2022 | TheFirstQuarterReport2022(ChineseandEnglishVersions) |
| 2022-044 | 10May2022 | Announcementonthe2021DividendPayout |
| 2022-045 | 11May2022 | AnnouncementontheResolutionsofthe4thExtraordinaryMeetingofthe10thBoardofDirectorsin2022 |
| 2022-046 | 11May2022 | AnnouncementontheAdjustmentofaPartially-ownedSubsidiary'sSecurityforItsEquity-participatingCompany |
| 2022-047 | 11May2022 | NoticeonConveningthe20221stExtraordinaryGeneralMeetingofShareholders |
| 2022-048 | 14May2022 | AnnouncementontheVoluntaryInformationDisclosureofBusinessVolumeDataofApril2022 |
| 2022-049 | 17May2022 | AnnouncementontheResolutionsofthe5thExtraordinaryMeetingofthe10thBoardofDirectorsin2022 |
| 2022-050 | 17May2022 | NoticeontheAdditionofaTemporaryProposalandSupplementaryNoticeoftheGeneralMeetingofShareholderstothe20221stExtraordinaryGeneralMeetingofShareholders |
| 2022-051 | 28May2022 | AnnouncementontheResolutionsof2022FirstExtraordinaryGeneralMeetingofShareholders |
| 2022-052 | 28May2022 | AnnouncementontheResolutionsofthe6thExtraordinaryMeetingofthe10thBoardofDirectorsin2022 |
| 2022-053 | 28May2022 | AnnouncementontheSelectionofViceChairmen,theBy-electionofDirectors,andtheChangeinSeniorManagers |
| 2022-054 | 2June2022 | AnnouncementontheIssuanceofOverseasUSDBondsbyaWholly-ownedSubsidiaryofaPartially-ownedSubsidiary |
| 2022-055 | 14June2022 | ReminderoftheIssuanceof2022PhaseIVSuper-shortCommercialPaper |
| 2022-056 | 15June2022 | AnnouncementontheVoluntaryInformationDisclosureofBusinessVolumeDataofMay2022 |
| 2022-057 | 17June2022 | AnnouncementontheIssueResultsof2022PhaseIVSuper-short-termFinancingBonds |
3.ProgressoftheInternalControlWorkAccordingtotherequirementsofBasicRulesforEnterpriseInternalControlandrelevantregulations,theinternalcontrolworkcarriedoutbytheCompanyduringtheReportingPeriodisasfollows:
(1)Thedevelopmentoftheinternalcontrolsystem.TheCompanydefinedthefullcoverageoftheinternalcontrolsystembythestandardsofcontrolandlegalentities,respectively,andperformedinternalcontrolassessment.Asofthefirsthalfoftheyear,theCompanycompletedthesupervisionandinspectionoftheinternalcontrolofthreeorganizationsandwasconductingthesupervisionandinspectionoffivesubordinateorganizations,inaccordancewiththe"Three-yearFullCoverage"workplanforsupervisingandinspectinginternalcontrolsystems.
(2)Comprehensiveriskmanagement.TheCompanytrackedandcontrolledoperatingriskeventsinanormalizedmanner,andrevisedtherelevantmanagementrulestomonitorthelateststatusofquantitativeriskindicators.Moreover,itfurtherstrengthenedtheriskcontrolmanagementcapabilitybyimprovingquantitativeoverseasriskindicators,theearlywarningsystemofliquidityrisk,thecreditriskmanagementmechanism,andspecialriskcontrolmeasures.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
4.CommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews
(1)DuringtheReportingPeriod
Date
| Date | Place | Wayofcommunication | Typeofcommunicationparty | Objectofcommunication | Indextobasicinformationofresearches |
| 1April2022 | ChinaMerchantsPortBuilding | Teleconferencing | Institution | Representativesfrominstitutions,suchasTianfengSecurities,IndustrialSecurities,CapitalSecurities,EssenceSecurities,SealandSecurities,ChinaInternationalCapitalCorporationLimited(CICC),ChinaGalaxySecurities,CITICSecurities,HaitongSecurities,HuataiSecurities,FounderSecurities,ShenwanHongyuanSecurities,GuotaiJunanSecurities,theLichangResearchCenter,Greewoods,GoldenEagle,ChangjiangSecurities,ChinaSecurities,ZheshangSecurities,PacificSecurities,EssenceSecurities,andHSBCQianhai | Maindiscussions:thebasicconditionofoperations,investmentsmadeandthefinancialconditionoftheCompany;Materialsprovided:NoneIndex:SZSEEasyIR(http://irm.cninfo.com.cn/ircs/index) |
| 22June2022 | ChinaMerchantsPortBuilding | One-on-onemeeting | Institution | ShenzhenQianhaiWanliInvestmentManagementCo.,Ltd.,ChengnuoAssets,ShenzhenMissionHillsInvestmentHoldingCo.,Ltd.,RozzAssetManagement,LingchuangInvestmentGroupCo.,Ltd.,GuorenP&C,ShenzhenNewThinkingInvestmentManagementCo.,Ltd.,HuachuangSecurities,andShenzhenQianrongAssetManagementCo.,Ltd. | |
| 1January2022to30June2022 | ChinaMerchantsPortBuilding | Byphone,orwritteninquiry(theEasyIRplatformofSZSEoremail) | Individual | Individualinvestors | |
| Timesofcommunications | 58 | ||||
| Numberofinstitutionscommunicatedwith | 31 | ||||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Numberofindividualscommunicatedwith
| Numberofindividualscommunicatedwith | 60 |
| Numberofothercommunicationparties | 0 |
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | No |
(2)Period-endtoDisclosureDate
| Date | Place | Wayofcommunication | Typeofcommunicationparty | Objectofcommunication | Indextobasicinformationofresearches |
| 1July2022to30August2022 | ChinaMerchantsPortBuilding | Byphone,orwritteninquiry(theEasyIRplatformofSZSEoremail) | Individual | Individualinvestors | Maindiscussions:thebasicconditionofoperations,investmentsmadeandthefinancialconditionoftheCompany;Materialsprovided:NoneIndex:SZSEEasyIR(http://irm.cninfo.com.cn/ircs/index) |
| Timesofcommunications | 20 | ||||
| Numberofinstitutionscommunicatedwith | 0 | ||||
| Numberofindividualscommunicatedwith | 20 | ||||
| Numberofothercommunicationparties | 0 | ||||
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | No | ||||
XIVSignificantEventsofSubsidiaries
□Applicable√Notapplicable
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartVIIShareChangesandShareholderInformationIShareChanges
1.ShareChanges
Unit:share
Before
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| I.Restrictedshares | 1,148,658,469 | 59.7524% | 0 | 0 | 0 | -2,455 | -2,455 | 1,148,656,014 | 59.7522% |
| 1.Sharesheldbystate | 0 | 0.0000% | 0 | 0 | 0 | 0 | 0 | 0 | 0.0000% |
| 2.Sharesheldbystate-ownedlegalperson | 0 | 0.0000% | 0 | 0 | 0 | 0 | 0 | 0 | 0.0000% |
| 3.Sharesheldbyotherdomesticinvestors | 9,821 | 0.0005% | 0 | 0 | 0 | -2,455 | -2,455 | 7,366 | 0.0004% |
| Including:Sharesheldbydomesticlegalperson | 0 | 0.0000% | 0 | 0 | 0 | 0 | 0 | 0 | 0.0000% |
| Sharesheldbydomesticnaturalperson | 9,821 | 0.0005% | 0 | 0 | 0 | -2,455 | -2,455 | 7,366 | 0.0004% |
| 4.Sharesheldbyforeigninvestors | 1,148,648,648 | 59.7518% | 0 | 0 | 0 | 0 | 0 | 1,148,648,648 | 59.7518% |
| Including:Sharesheldbyforeignlegalperson | 1,148,648,648 | 59.7518% | 0 | 0 | 0 | 0 | 0 | 1,148,648,648 | 59.7518% |
| Sharesheldbyforeignnaturalperson | 0 | 0.0000% | 0 | 0 | 0 | 0 | 0 | 0 | 0.0000% |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
II.Unrestrictedshares
| II.Unrestrictedshares | 773,706,655 | 40.2476% | 0 | 0 | 0 | 2,455 | 2,455 | 773,709,110 | 40.2478% |
| 1.RMBordinaryshares | 593,820,070 | 30.8901% | 0 | 0 | 0 | 325 | 325 | 593,820,395 | 30.8901% |
| 2.Domesticallylistedforeignshares | 179,886,585 | 9.3576% | 0 | 0 | 0 | 2,130 | 2,130 | 179,888,715 | 9.3577% |
| 3.Overseaslistedforeignshares | 0 | 0.0000% | 0 | 0 | 0 | 0 | 0 | 0 | 0.0000% |
| 4.Other | 0 | 0.0000% | 0 | 0 | 0 | 0 | 0 | 0 | 0.0000% |
| III.Totalshares | 1,922,365,124 | 100% | 0 | 0 | 0 | 0 | 0 | 1,922,365,124 | 100% |
Reasonsforthesharechanges:
Duringthereportingperiod,changesinrestrictedsharesheldbytheleftseniormanagement.Approvalofthesharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchase:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofthesharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
Unit:share
| Nameofshareholders | Numberofrestrictedsharesattheperiod-begin | Numberofreleasedrestrictedshares | Numberofincreasedrestrictedshares | Numberofrestrictedsharesattheperiod-end | Reasonforrestriction | Dateofrestrictionrelease |
| ChinaMerchantsPortInvestmentDevelopmentCompanyLimited | 1,148,648,648 | 0 | 0 | 1,148,648,648 | Accordingtorelevantlawsandregulationsandtheshareholdercommitment | August2022 |
| ZhengShaoping | 9,821 | 2,455 | 0 | 7,366 | AccordingtotheArticlesofAssociation | November |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
andtherelevantlawsandregulations
| andtherelevantlawsandregulations | 2023 | |||||
| Total | 1,148,658,469 | 2,455 | 0 | 1,148,656,014 | -- | -- |
IIIssuanceandListingofSecurities
□Applicable√NotapplicableIIIShareholdersandTheirHoldingsasatthePeriod-End
Unit:share
| Numberofordinaryshareholdersattheperiod-end | 31,844(20,435A-shareholdersand11,409B-shareholders) | Numberofpreferredshareholderswithresumedvotingrightsattheperiod-end(ifany) | 0 | |||||
| 5%orgreaterordinaryshareholdersortop10ordinaryshareholders | ||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalordinarysharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedordinarysharesheld | Unrestrictedordinarysharesheld | Sharesinpledge,markedorfrozen | |
| 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) | Funds,wealthmanagementproducts,etc. | 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 | |
| ZHUHUI | Domesticnaturalperson | 0.15% | 2,923,003 | -35,000 | 0 | 2,923,003 | Unknown | |
| CHINAMERCHANTSSECURITIES(HK)CO.,LTD. | State-ownedlegalperson | 0.13% | 2,531,955 | -31,600 | 0 | 2,531,955 | Unknown | |
| HONGKONGSECURITIESCLEARINGCOMPANYLTD. | Foreignlegalperson | 0.11% | 2,162,478 | -3,882,591 | 0 | 2,162,478 | Unknown | |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
MAISHUQING
| MAISHUQING | Domesticnaturalperson | 0.11% | 2,129,247 | 0 | 0 | 2,129,247 | Unknown | |
| ARROWSTREETEMERGINGMARKETALPHAEXTENSIONTRUSTFUND | Foreignlegalperson | 0.10% | 1,929,691 | -263,000 | 0 | 1,929,691 | Unknown | |
| Strategicinvestorsorgenerallegalpersonbecomingtop-tenordinaryshareholdersduetoplacingofnewshares(ifany) | N/A | |||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.isamajority-ownedsubsidiaryofBroadfordGlobalLimited,andBroadfordGlobalLimitedisthecontrollingshareholderofChinaMerchantsPortInvestmentDevelopmentCompanyLimited.TheCompanydoesnotknowwhethertheotherunrestrictedshareholdersarerelatedpartiesornot. | |||||||
| Aboveshareholdersinvolvedinentrusting/beingentrustedandgivingupvotingrights | None | |||||||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders | N/A | |||||||
| Top10unrestrictedordinaryshareholders | ||||||||
| Nameofshareholder | Unrestrictedordinarysharesheldattheperiod-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 | |||||
| ZHUHUI | 2,923,003 | RMBordinaryshare | 2,923,003 | |||||
| CHINAMERCHANTSSECURITIES(HK)CO.,LTD. | 2,531,955 | Domesticallylistedforeignshare | 2,531,955 | |||||
| HONGKONGSECURITIESCLEARINGCOMPANYLTD. | 2,162,478 | RMBordinaryshare | 2,162,478 | |||||
| MAISHUQING | 2,129,247 | RMBordinaryshare | 2,129,247 | |||||
| ARROWSTREETEMERGINGMARKETALPHAEXTENSIONTRUSTFUND | 1,929,691 | Domesticallylistedforeignshare | 1,929,691 | |||||
| SHENHUAILING | 1,721,049 | Domesticallylistedforeignshare | 1,721,049 | |||||
| Relatedoracting-in-concertpartiesamongtop10unrestrictedordinaryshareholders,aswellasbetweentop10unrestrictedordinaryshareholdersandtop10ordinaryshareholders | ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.isamajority-ownedsubsidiaryofBroadfordGlobalLimited.TheCompanydoesnotknowwhethertheotherunrestrictedshareholdersarerelatedpartiesornot. | |||||||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | N/A | |||||||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.IVChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
□Applicable√NotapplicableNochangesoccurredtotheshareholdingsofthedirectors,supervisorsandseniormanagementintheReportingPeriod.Seethe2021AnnualReportformoredetails.VChangeoftheControllingShareholderortheDeFactoControllerChangeofthecontrollingshareholderintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartIXBonds
IEnterpriseBonds
□Applicable√NotapplicableNoenterprisebondsintheReportingPeriod.IICorporateBonds
1.BasicInformationoftheCorporateBonds
Name
| Name | Abbr. | Code | Dateofissuance | Valuedate | Maturity | Bondsbalance(RMB) | Interestrate | Wayofredemption | Tradingplace |
| 2020PublicOfferingofCorporateBondsofChinaMerchantsPortGroupCo.,Ltd.(forqualifiedinvestors)(PhaseI) | 20CMPort01 | 149170 | 7July2020 | 8July2020 | 8July2023 | 2,000,000,000.00 | 3.36% | Simpleinterestisadoptedandcalculatedbyyear.Nocompoundinterestiscalculated.Interestsarepaidonceeveryyearandprincipalspaidinlumpsumatmaturity.Inthelastinstallment,theinterestsarepaidtogetherwithprincipalrepayment. | ShenzhenStockExchange |
| Appropriatearrangementoftheinvestors(ifany) | TheCompany'sbondsarepubliclyissuedtoeligibleinvestorswhocomplywiththeMeasuresforIssuanceandTradingofCorporateBondsandhaveopenedaneligibleA-sharesecuritiesaccountwithShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.(CSDC). | ||||||||
| Applicabletradingmechanism | BilaterallistingtransactionsthroughthecentralizedbiddingsystemofShenzhenStockExchangeandthecomprehensiveagreementtransactionsplatform | ||||||||
| Riskofterminationoflistingtransactions(ifany)andcountermeasures | No | ||||||||
Overduebonds
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
□Applicable√Notapplicable
2.TheTriggerandExecutionoftheOptionClauseoftheIssuersorInvestorsandtheInvestorProtectionClause
□Applicable√Notapplicable
3.AdjustmentofCreditRatingResultsduringtheReportingPeriod
□Applicable√Notapplicable
4.ExecutionandChangesofGuarantee,RepaymentPlanandOtherRepaymentGuaranteeMeasuresaswellasInfluenceonEquityofBondInvestorsduringtheReportingPeriod
□Applicable√NotapplicableIIIDebtFinancingInstrumentsofNon-financialEnterprises
1.BasicInformationofDebtFinancingInstrumentsofaNon-financialEnterprise
Name
| Name | Abbr. | Code | Dateofissuance | Valuedate | Maturity | Bondsbalance(RMB’00,000,000) | Interestrate(%) | Wayofredemption | Tradingplace |
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseVII2021) | 21CMPortSCP007 | 012105379.IB | 10December2021to13December2021 | 14December2021 | 14March2022 | 0 | 2.45 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
| Medium-termNotesofChinaMerchantsPortGroupCo.,Ltd.(PhaseI2021) | 21CMPortMTN001 | 102100703.IB | 14April2021 | 16April2021 | 16April2024 | 20 | 3.52 | Interestspaidonceeveryyearandprincipalspaidinlumpsumontheredemptiondate | Interbankbondmarket |
| Super-short-termCommercialPapersofChinaMerchantsPortGroup | 22CMPortSCP001 | 012280274 | 17January2022 | 18January2022 | 18April2022 | 0 | 2.32 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
Co.,Ltd.(PhaseI2022)
| Co.,Ltd.(PhaseI2022) | |||||||||
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseII2022) | 22CMPortSCP002 | 012280798 | 2March2022 | 4March2022 | 31August2022 | 10 | 2.15 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseIII2022) | 22CMPortSCP003 | 012281252 | 28March2022 | 30March2022 | 26September2022 | 20 | 2.13 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseIV2022) | 22CMPortSCP004 | 012282116 | 14June2022 | 15June2022 | 12December2022 | 20 | 2.00 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
| Appropriatearrangementoftheinvestors(ifany) | Notapplicable | ||||||||
| Applicabletradingmechanism | Inquiry | ||||||||
| Riskofterminationoflistingtransactions(ifany)andcountermeasures | None | ||||||||
Maturedbondsunredeemed
□Applicable√Notapplicable
2.TriggeringandImplementationofIssuerorInvestorOptionClausesandInvestorProtectionClauses
□Applicable√Notapplicable
3.CreditRatingAdjustmentsduringtheReportingPeriod
□Applicable√Notapplicable
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
4.ImplementationandChangesofGuarantees,RepaymentPlanandOtherRepaymentGuaranteeMeasuresduringtheReportingPeriod,andtheirImpactontheEquityOwnershipofbondholdersDuringtheReportingPeriod,theCompany'screditenhancementmechanismforexistingdebtfinancinginstrumentsremainedunchanged.Therepaymentplanandotherrepaymentguaranteemeasuresdidnotundergosignificantchanges.Therewasnoadverseimpactontheequityownershipofdebtfinancinginstrumentholders.IVConvertibleCorporateBonds
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VLossesofScopeofConsolidatedFinancialStatementsduringtheReportingPeriodExceeding10%ofNetAssetsupthePeriod-endofLastYear
□Applicable√NotapplicableVITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
Item
| Item | 30June2022 | 31December2021 | Increase/decrease |
| Currentratio | 82.53 | 75.96 | 8.65% |
| Debt/assetratio | 37.95% | 36.91% | 1.04% |
| Quickratio | 81.80 | 75.32 | 8.60% |
| H12022 | H12021 | Increase/decrease | |
| Netprofitbeforeexceptionalgainsandlosses | 192,054.92 | 164,469.61 | 16.77% |
| EBITDA/debtratio | 11.93% | 12.09% | -0.16% |
| Interestcover(times) | 4.76 | 5.24 | -9.16% |
| Cash-to-interestcover(times) | 5.20 | 4.90 | 6.12% |
| EBITDA-to-interestcover(times) | 7.15 | 7.80 | -8.33% |
| Loanrepaymentratio | 100.00% | 100.00% | - |
| Interestpaymentratio | 100.00% | 100.00% | - |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2022
PartXFinancialStatements
IIndependentAuditor’sReportTheseinterimfinancialstatementshavenotbeenauditedbyanindependentauditor.IIFinancialStatementsSeeattached.
ChinaMerchantsPortGroupCo.,Ltd.
BoardofDirectorsDated31August2022
CHINAMERCHANTSPORTGROUPCO.,LTD.FINANCIALSTATEMENTSFORTHEPERIODFROM1JANUARYTO30JUNE2022
FINANCIALSTATEMENTSFORTHEPERIODFROM1JANUARYTO30JUNE2022
CONTENTSPAGES
THECONSOLIDATEDANDCOMPANY'SBALANCESHEETS1-4THECONSOLIDATEDANDCOMPANY'SINCOMESTATEMENTS5-6THECONSOLIDATEDANDCOMPANY'SCASHFLOWSTATEMENTS7-8THECONSOLIDATEDANDCOMPANY'SSTATEMENTSOFCHANGESINSHAREHOLDERS'EQUITY9-12NOTESTOTHEFINANCIALSTATEMENTS13-162
-1-
AT30JUNE2022
ConsolidatedBalanceSheet
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Notes | 30/6/2022 | 31/12/2021 |
| CurrentAssets: | |||
| Cashandbankbalances | (VIII)1 | 14,171,964,195.08 | 12,772,349,406.77 |
| Held-for-tradingfinancialassets | (VIII)2 | 5,272,909,312.13 | 6,921,831,502.55 |
| Notesreceivable | (VIII)3 | 2,645,000.00 | 6,081,611.95 |
| Accountsreceivable | (VIII)4 | 1,840,398,775.49 | 1,320,577,577.81 |
| Receivablesfinancing | (VIII)5 | 191,399,515.52 | 238,429,402.71 |
| Prepayments | (VIII)6 | 66,013,401.35 | 51,606,794.20 |
| Otherreceivables | (VIII)7 | 2,234,309,527.16 | 696,276,595.87 |
| Inventories | (VIII)8 | 219,602,505.71 | 194,920,136.12 |
| Assetsheldforsale | (VIII)9 | 337,442,757.28 | 337,442,757.28 |
| Non-currentassetsduewithinoneyear | (VIII)10 | 134,710,787.73 | 102,356,461.97 |
| Othercurrentassets | (VIII)11 | 137,978,273.63 | 339,684,297.41 |
| Totalcurrentassets | 24,609,374,051.08 | 22,981,556,544.64 | |
| Non-currentAssets: | |||
| Long-termreceivables | (VIII)12 | 6,301,366,958.60 | 6,162,713,861.02 |
| Long-termequityinvestments | (VIII)13 | 74,541,201,708.16 | 70,353,451,824.52 |
| Investmentsinotherequityinstruments | (VIII)14 | 171,625,961.43 | 180,251,798.43 |
| Othernon-currentfinancialassets | (VIII)15 | 818,869,293.22 | 809,515,244.87 |
| Investmentproperties | (VIII)16 | 5,213,447,878.80 | 5,298,238,414.88 |
| Fixedassets | (VIII)17 | 31,388,137,617.06 | 31,710,513,230.29 |
| Constructioninprogress | (VIII)18 | 2,616,086,132.03 | 2,557,584,953.92 |
| Right-of-useassets | (VIII)19 | 9,106,596,039.35 | 8,743,077,542.19 |
| Intangibleassets | (VIII)20 | 18,493,460,564.32 | 18,475,412,380.93 |
| Developmentexpenditure | (VIII)21 | 62,087,161.02 | 82,391,225.85 |
| Goodwill | (VIII)22 | 6,299,993,214.67 | 6,024,160,942.07 |
| Long-termprepaidexpenses | (VIII)23 | 961,872,568.04 | 975,994,541.52 |
| Deferredtaxassets | (VIII)24 | 393,135,823.81 | 398,145,710.84 |
| Othernon-currentassets | (VIII)25 | 1,461,319,189.49 | 1,231,092,952.69 |
| Totalnon-currentassets | 157,829,200,110.00 | 153,002,544,624.02 | |
| TOTALASSETS | 182,438,574,161.08 | 175,984,101,168.66 |
-2-
AT30JUNE2022
ConsolidatedBalanceSheet-continued
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Notes | 30/6/2022 | 31/12/2021 |
| CurrentLiabilities: | |||
| Short-termborrowings | (VIII)26 | 15,482,279,719.62 | 13,651,452,805.36 |
| Notespayable | (VIII)27 | 9,089,940.00 | 1,895,987.17 |
| Accountspayable | (VIII)28 | 711,116,965.55 | 843,820,438.51 |
| Receiptsinadvance | (VIII)29 | 27,105,756.89 | 9,313,166.01 |
| Contractliabilities | (VIII)30 | 225,350,974.85 | 196,784,525.26 |
| Employeebenefitspayable | (VIII)31 | 756,589,567.67 | 820,416,415.47 |
| Taxespayable | (VIII)32 | 1,143,491,598.23 | 2,162,719,251.68 |
| Otherpayables | (VIII)33 | 3,485,085,782.19 | 2,140,108,341.08 |
| Non-currentliabilitiesduewithinoneyear | (VIII)34 | 2,813,987,163.97 | 8,268,209,284.17 |
| Othercurrentliabilities | (VIII)35 | 5,163,575,748.06 | 2,158,497,775.85 |
| Totalcurrentliabilities | 29,817,673,217.03 | 30,253,217,990.56 | |
| Non-currentLiabilities: | |||
| Long-termborrowings | (VIII)36 | 7,577,041,256.64 | 7,144,839,870.89 |
| Bondspayable | (VIII)37 | 20,642,028,030.72 | 16,670,872,414.14 |
| Including:Preferredshares | - | - | |
| Perpetualbonds | - | - | |
| Leaseliabilities | (VIII)38 | 1,060,180,377.44 | 1,055,194,906.09 |
| Long-termpayables | (VIII)39 | 3,669,169,313.03 | 3,422,179,366.40 |
| Long-termemployeebenefitspayable | (VIII)40 | 561,785,876.67 | 588,681,492.63 |
| Provisions | (VIII)41 | 31,464,238.16 | 24,247,302.42 |
| Deferredincome | (VIII)42 | 1,053,313,962.43 | 1,075,957,884.91 |
| Deferredtaxliabilities | (VIII)24 | 4,660,617,044.44 | 4,550,417,470.61 |
| Othernon-currentliabilities | (VIII)43 | 163,649,191.94 | 163,065,578.53 |
| Totalnon-currentliabilities | 39,419,249,291.47 | 34,695,456,286.62 | |
| TOTALLIABILITIES | 69,236,922,508.50 | 64,948,674,277.18 | |
| SHAREHOLDERS'EQUITY: | |||
| Sharecapital | (VIII)44 | 1,922,365,124.00 | 1,922,365,124.00 |
| Capitalreserve | (VIII)45 | 23,846,734,297.13 | 23,592,702,758.70 |
| Othercomprehensiveincome | (VIII)46 | -916,335,049.74 | -890,125,318.18 |
| Specialreserve | (VIII)47 | 32,315,835.92 | 9,184,429.12 |
| Surplusreserve | (VIII)48 | 961,182,562.00 | 961,182,562.00 |
| Unappropriatedprofit | (VIII)49 | 15,368,637,097.70 | 14,205,879,106.49 |
| Totalshareholders'equityattributabletoequityholdersoftheCompany | 41,214,899,867.01 | 39,801,188,662.13 | |
| Totalminorityinterests | 71,986,751,785.57 | 71,234,238,229.35 | |
| TOTALSHAREHOLDERS'EQUITY | 113,201,651,652.58 | 111,035,426,891.48 | |
| TOTALLIABILITIESANDSHAREHOLDERS'EQUITY | 182,438,574,161.08 | 175,984,101,168.66 |
Theaccompanyingnotesformpartofthefinancialstatements.Thefinancialstatementsweresignedbythefollowing:
WangXiufengTuXiaopingHuangShengchao_____________________________________________________________________
LegalRepresentativeChiefFinancialOfficerHeadofAccountingDepartment
-3-
AT30JUNE2022
BalanceSheetoftheCompany
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Notes | 30/6/2022 | 31/12/2021 |
| CurrentAssets: | |||
| Cashandbankbalances | 5,031,443,283.96 | 2,913,761,567.31 | |
| Held-for-tradingfinancialassets | 5,021,434,305.48 | 4,355,978,026.30 | |
| Prepayments | - | - | |
| Otherreceivables | (XVII)1 | 1,530,323,385.88 | 1,256,742,971.01 |
| Othercurrentassets | 3,120,888.85 | 3,799,849.79 | |
| Totalcurrentassets | 11,586,321,864.17 | 8,530,282,414.41 | |
| Non-currentAssets: | |||
| Long-termreceivables | 8,855,665.09 | 8,447,395.74 | |
| Long-termequityinvestments | (XVII)2 | 38,790,205,527.56 | 38,632,541,293.73 |
| Investmentsinotherequityinstruments | 145,397,984.69 | 154,017,984.69 | |
| Othernon-currentfinancialassets | 50,200,000.00 | - | |
| Fixedassets | 2,709,434.31 | 1,684,450.22 | |
| Constructioninprogress | 8,583,349.46 | 8,714,886.98 | |
| Intangibleassets | 52,448,664.17 | 53,886,017.45 | |
| Long-termprepaidexpenses | 1,048,440.59 | 1,223,180.69 | |
| Deferredtaxassets | 1,846,793.34 | 1,846,793.34 | |
| Othernon-currentassets | 50,246,299.06 | - | |
| Totalnon-currentassets | 39,111,542,158.27 | 38,862,362,002.84 | |
| TOTALASSETS | 50,697,864,022.44 | 47,392,644,417.25 |
-4-
AT30JUNE2022
BalanceSheetoftheCompany-continued
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Notes | 30/6/2022 | 31/12/2021 |
| Currentliabilities: | |||
| Short-termborrowings | 6,605,668,055.55 | 6,606,500,555.58 | |
| Employeebenefitspayable | 33,178,269.86 | 36,196,999.78 | |
| Taxespayable | 266,100.89 | 166,072,684.93 | |
| Otherpayables | 895,210,336.23 | 1,136,030,015.25 | |
| Non-currentliabilitiesduewithinoneyear | 83,430,113.00 | 82,735,342.45 | |
| Othercurrentliabilities | 5,019,617,260.31 | 2,007,042,725.30 | |
| Totalcurrentliabilities | 12,637,370,135.84 | 10,034,578,323.29 | |
| Non-currentLiabilities: | |||
| Long-termborrowings | 997,000,000.00 | - | |
| Bondspayable | 4,000,000,000.00 | 4,000,000,000.00 | |
| Provisions | - | 1,003,584.24 | |
| Deferredtaxliabilities | 44,754,891.55 | 44,515,821.76 | |
| Totalnon-currentliabilities | 5,041,754,891.55 | 4,045,519,406.00 | |
| TOTALLIABILITIES | 17,679,125,027.39 | 14,080,097,729.29 | |
| SHAREHOLDERS'EQUITY | |||
| Sharecapital | 1,922,365,124.00 | 1,922,365,124.00 | |
| Capitalreserve | 27,600,222,792.28 | 27,594,079,596.13 | |
| Othercomprehensiveincome | 98,398,294.82 | 105,412,294.52 | |
| Surplusreserve | 961,182,562.00 | 961,182,562.00 | |
| Unappropriatedprofit | 2,436,570,221.95 | 2,729,507,111.31 | |
| TOTALSHAREHOLDERS'EQUITY | 33,018,738,995.05 | 33,312,546,687.96 | |
| TOTALLIABILITIESANDSHAREHOLDERS'EQUITY | 50,697,864,022.44 | 47,392,644,417.25 |
Theaccompanyingnotesformpartofthefinancialstatements.
-5-
FORTHEPERIODFROM1JANUARYTO30JUNE2022
ConsolidatedIncomeStatement
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod |
| I.Operatingincome | (VIII)50 | 8,150,462,367.19 | 7,339,942,862.26 |
| Less:Operatingcosts | (VIII)50 | 4,637,368,881.65 | 4,198,451,164.27 |
| Taxesandlevies | (VIII)51 | 135,514,540.07 | 87,671,634.48 |
| Administrativeexpenses | (VIII)52 | 812,502,660.55 | 766,369,973.37 |
| Researchanddevelopmentexpenses | 114,833,178.50 | 98,344,411.25 | |
| Financialexpenses | (VIII)53 | 1,351,945,047.67 | 730,109,013.88 |
| Including:Interestexpenses | 1,140,997,429.67 | 892,510,549.76 | |
| Interestincome | 212,820,789.37 | 183,191,011.93 | |
| Add:Otherincome | (VIII)54 | 87,480,824.65 | 305,982,258.62 |
| Investmentincome | (VIII)55 | 4,355,273,765.49 | 3,609,743,591.59 |
| Including:Incomefrominvestmentsinassociatesandjointventures | (VIII)55 | 4,211,173,480.05 | 3,557,359,417.25 |
| Gains(Losses)fromchangesinfairvalue | (VIII)56 | -38,026,112.58 | -488,532,866.45 |
| Gains(Losses)onimpairmentofcredit | (VIII)57 | 2,882,412.61 | -2,586,332.20 |
| Gains(Losses)onimpairmentofassets | - | - | |
| Gains(Losses)ondisposalofassets | (VIII)58 | -207,276.37 | 9,432,717.92 |
| II.Operatingprofit | 5,505,701,672.55 | 4,893,036,034.49 | |
| Add:Non-operatingincome | (VIII)59 | 20,192,926.39 | 28,987,669.73 |
| Less:Non-operatingexpenses | (VIII)60 | 20,267,458.29 | 14,323,864.27 |
| III.Grossprofit | 5,505,627,140.65 | 4,907,699,839.95 | |
| Less:Incometaxexpenses | (VIII)61 | 625,643,717.42 | 643,438,595.12 |
| IV.Netprofit | 4,879,983,423.23 | 4,264,261,244.83 | |
| (I)Categorizationbycontinuityofoperation | |||
| 1.Netprofitofcontinuedoperation | 4,879,983,423.23 | 4,264,261,244.83 | |
| 2.Netprofitofdiscontinuedoperation | - | - | |
| (II)Categorizationbyattributionofownership | |||
| 1.NetprofitattributabletoshareholdersoftheCompany | 1,981,861,324.62 | 1,677,035,346.17 | |
| 2.Profitorlossattributabletominorityshareholders | 2,898,122,098.61 | 2,587,225,898.66 | |
| V.Amountofothercomprehensivenetincomeaftertax | (VIII)46 | 441,729,116.27 | -314,186,364.19 |
| AmountofothercomprehensivenetincomeaftertaxattributabletoequityholdersoftheCompany | -18,696,061.65 | -89,607,300.16 | |
| (I)Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | -76,728,084.39 | 228,315.37 | |
| 1.Changesasaresultofremeasurementofthenetdefinedbenefitplan | - | - | |
| 2.Othercomprehensiveincomeundertheequitymethodthatwillnotbereclassifiedtoprofitorloss | -78,616,754.21 | -184,184.63 | |
| 3.Fairvaluechangesofinvestmentsinotherequityinstruments | 1,888,669.82 | 412,500.00 | |
| (II)Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss | 58,032,022.74 | -89,835,615.53 | |
| 1.Othercomprehensiveincomeundertheequitymethodthatwillbereclassifiedtoprofitorloss | -117,324,901.44 | -23,133,723.56 | |
| 2.Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | 175,356,924.18 | -66,701,891.97 | |
| Amountofothercomprehensivenetincomeaftertaxattributabletominorityshareholders | 460,425,177.92 | -224,579,064.03 | |
| VI.Totalcomprehensiveincomeattributableto: | 5,321,712,539.50 | 3,950,074,880.64 | |
| ShareholdersoftheCompany | 1,963,165,262.97 | 1,587,428,046.01 | |
| Minorityshareholders | 3,358,547,276.53 | 2,362,646,834.63 | |
| VII.Earningspershare | |||
| (I)Basicearningspershare | 1.03 | 0.87 | |
| (II)Dilutedearningspershare | 1.03 | 0.87 |
Theaccompanyingnotesformpartofthefinancialstatements.
-6-
FORTHEPERIODFROM1JANUARYTO30JUNE2022
IncomeStatementoftheCompany
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod |
| I.Operatingincome | (XVII)3 | - | 471,974.86 |
| Less:Operatingcosts | (XVII)3 | 1,132,979.70 | 1,132,979.75 |
| Taxesandlevies | 152,914.98 | - | |
| Administrativeexpenses | 74,398,609.92 | 62,053,671.27 | |
| Financialexpenses | 176,214,861.88 | 80,011,675.00 | |
| Including:Interestexpenses | 220,415,407.89 | 103,671,335.55 | |
| Interestincome | 51,040,811.33 | 26,740,035.75 | |
| Add:Otherincome | 366,921.86 | 122,335.30 | |
| Investmentincome | (XVII)4 | 762,872,589.73 | 1,005,277,395.49 |
| Including:Incomefrominvestmentsinassociatesandjointventures | (XVII)4 | 136,885,266.28 | 86,382,211.38 |
| Gains(Losses)fromchangesinfairvalue | 8,456,279.18 | - | |
| II.Operatingprofit | 519,796,424.29 | 862,673,379.63 | |
| Add:Non-operatingincome | 34,957.54 | 424,555.92 | |
| Less:Non-operatingexpenses | 18.84 | - | |
| III.Grossprofit | 519,831,362.99 | 863,097,935.55 | |
| Less:Incometaxexpenses | -6,336,709.00 | 130,368,128.15 | |
| IV.Netprofit | 526,168,071.99 | 732,729,807.40 | |
| V.Amountofothercomprehensivenetincomeaftertax | 498,042.27 | 412,500.00 | |
| (I)Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss | 1,914,691.56 | 412,500.00 | |
| 1.Changesasaresultofremeasurementofthenetdefinedbenefitplan | - | - | |
| 2.Othercomprehensiveincomeundertheequitymethodthatwillnotbereclassifiedtoprofitorloss | 27,649.59 | - | |
| 3.Fairvaluechangesofinvestmentsinotherequityinstruments | 1,887,041.97 | 412,500.00 | |
| (II)Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss | -1,416,649.29 | - | |
| 1.Othercomprehensiveincomeundertheequitymethodthatwillbereclassifiedtoprofitorloss | -1,416,649.29 | - | |
| 2.Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | - | - | |
| VI.Totalcomprehensiveincome | 526,666,114.26 | 733,142,307.40 |
Theaccompanyingnotesformpartofthefinancialstatements.
-7-
FORTHEPERIODFROM1JANUARYTO30JUNE2022
ConsolidatedCashFlowStatement
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod(Restated) |
| I.CashFlowsfromOperatingActivities | |||
| Cashreceivedfromsalesofgoodsandrenderingofservices | 7,946,044,540.63 | 6,999,276,674.02 | |
| Refundsoftaxes | 185,224,132.63 | 85,780,705.21 | |
| Othercashreceivedrelatingtooperatingactivities | (VIII)64(1) | 448,659,531.56 | 603,526,364.98 |
| Sub-totalofcashinflows | 8,579,928,204.82 | 7,688,583,744.21 | |
| Cashpaidforgoodspurchasedorservicesreceived | 2,240,288,101.95 | 1,903,206,790.90 | |
| Cashpaidtoandonbehalfofemployees | 1,879,756,634.11 | 1,709,301,832.87 | |
| Taxpayments | 827,509,481.12 | 733,071,668.17 | |
| Cashpaidrelatingtootheroperatingactivities | (VIII)64(2) | 411,122,810.55 | 408,043,044.31 |
| Sub-totalofcashoutflows | 5,358,677,027.73 | 4,753,623,336.25 | |
| NetCashFlowsfromOperatingActivities | (VIII)65(1) | 3,221,251,177.09 | 2,934,960,407.96 |
| II.CashFlowsfromInvestingActivities | |||
| Cashreceivedfromdisposalandrecoveryofinvestments | 23,921,644,162.50 | 3,630,000,000.00 | |
| Cashreceivedfrominvestmentincome | 733,820,028.32 | 1,520,388,115.39 | |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 1,250,786.03 | 21,022,377.14 | |
| Othercashreceivedrelatingtoinvestingactivities | (VIII)64(3) | 94,566,178.69 | 355,653,171.58 |
| Sub-totalofcashinflows | 24,751,281,155.54 | 5,527,063,664.11 | |
| Cashpaidtoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets | 950,600,127.64 | 1,124,649,979.59 | |
| Cashpaidtoacquireinvestments | 24,696,618,396.78 | 4,337,300,451.86 | |
| Othercashpaidrelatingtoinvestingactivities | (VIII)64(4) | 967,712,734.42 | 11,284,899.93 |
| Sub-totalofcashoutflows | 26,614,931,258.84 | 5,473,235,331.38 | |
| NetCashFlowsfromInvestingActivities | -1,863,650,103.30 | 53,828,332.73 | |
| III.CashFlowsfromFinancingActivities | |||
| Cashreceivedfromborrowings | 14,789,220,290.65 | 3,694,414,917.83 | |
| Cashreceivedfromissueofbonds | 7,000,000,000.00 | 4,800,000,000.00 | |
| Othercashreceivedrelatingtofinancingactivities | (VIII)64(5) | 52,897,609.21 | - |
| Sub-totalofcashinflows | 21,842,117,899.86 | 8,494,414,917.83 | |
| Repaymentsofborrowings | 19,426,456,859.41 | 12,892,108,917.15 | |
| Dividendspaid,profitdistributedorinterestpaid | 2,063,908,899.16 | 942,876,415.60 | |
| Including:Dividendspaid,profitdistributedtominorityshareholders. | 298,311,895.58 | - | |
| Othercashpaidrelatingtofinancingactivities | (VIII)64(6) | 224,977,119.04 | 172,761,586.81 |
| Sub-totalofcashoutflows | 21,715,342,877.61 | 14,007,746,919.56 | |
| NetCashFlowsfromFinancingActivities | 126,775,022.25 | -5,513,332,001.73 | |
| IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents | -88,210,579.74 | -26,551,995.94 | |
| V.NetIncreaseinCashandCashEquivalents | 1,396,165,516.30 | -2,551,095,256.98 | |
| Add:OpeningBalanceofCashandCashEquivalents | (VIII)65(2) | 12,727,355,238.36 | 11,898,618,327.29 |
| VI.ClosingBalanceofCashandCashEquivalents | (VIII)65(2) | 14,123,520,754.66 | 9,347,523,070.31 |
Theaccompanyingnotesformpartofthefinancialstatements.
-8-
FORTHEPERIODFROM1JANUARYTO30JUNE2022
CashFlowStatementoftheCompany
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod |
| I.CashFlowsfromOperatingActivities | |||
| Refundsoftaxes | 1,181,089.86 | - | |
| Othercashreceivedrelatingtooperatingactivities | 33,183,150.38 | 218,034,986.32 | |
| Sub-totalofcashinflows | 34,364,240.24 | 218,034,986.32 | |
| Cashpaidforgoodspurchasedandservicesreceived | 57,280.00 | 40,000.00 | |
| Cashpaidtoandonbehalfofemployees | 50,444,029.40 | 32,829,622.92 | |
| Taxpayments | 161,506,258.88 | 209,567,259.29 | |
| Othercashpaidrelatingtooperatingactivities | 35,013,421.74 | 33,094,186.67 | |
| Sub-totalofcashoutflows | 247,020,990.02 | 275,531,068.88 | |
| NetCashFlowsfromOperatingActivities | -212,656,749.78 | -57,496,082.56 | |
| II.CashFlowsfromInvestingActivities: | |||
| Cashreceivedfromdisposalsandrecoveryofinvestments | 20,036,632,041.97 | 2,480,000,000.00 | |
| Cashreceivedfrominvestmentsincome | 630,452,904.29 | 293,098,915.83 | |
| Othercashreceivedrelatingtoinvestingactivities | 468.00 | - | |
| Sub-totalofcashinflows | 20,667,085,414.26 | 2,773,098,915.83 | |
| Cashpaidtoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets | 1,566,408.28 | 1,732,237.00 | |
| Cashpaidforinvestments | 21,026,322,904.70 | 2,386,523,799.86 | |
| Othercashpaidrelatingtoinvestingactivities | 180,004,179.30 | 198,583,388.96 | |
| Sub-totalofcashoutflows | 21,207,893,492.28 | 2,586,839,425.82 | |
| NetCashFlowsfromInvestingActivities | -540,808,078.02 | 186,259,490.01 | |
| III.CashFlowsfromFinancingActivities: | |||
| Cashreceivedfromborrowings | 3,126,668,674.85 | 5,797,840,000.00 | |
| Cashreceivedfromissueofbonds | 7,000,000,000.00 | - | |
| Cashreceivedrelatingtofinancingactivities | 2,897,609.21 | 25,000,000.00 | |
| Sub-totalofcashinflows | 10,129,566,284.06 | 5,822,840,000.00 | |
| Repaymentsofborrowings | 6,217,408,504.85 | 5,381,742,457.36 | |
| Dividendspaid,profitdistributedorinterestpaid | 1,038,085,659.53 | 89,771,518.67 | |
| Othercashpaidrelatingtofinancingactivities | 3,282,168.31 | 982,254.76 | |
| Sub-totalofcashoutflows | 7,258,776,332.69 | 5,472,496,230.79 | |
| NetCashFlowsfromFinancingActivities | 2,870,789,951.37 | 350,343,769.21 | |
| IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents | 356,593.08 | -65,793.07 | |
| V.NetIncreaseinCashandCashEquivalents | 2,117,681,716.65 | 479,041,383.59 | |
| Add:OpeningbalanceofCashandCashEquivalents | 2,913,761,567.31 | 753,590,556.77 | |
| VI.ClosingBalanceofCashandCashEquivalents | 5,031,443,283.96 | 1,232,631,940.36 |
Theaccompanyingnotesformpartofthefinancialstatements.
FORTHEPERIODFROM1JANUARYTO30JUNE2022
-9-
ConsolidatedStatementofChangesinShareholders'Equity
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | CurrentPeriod | |||||||
| AttributabletoshareholdersoftheCompany | Minorityinterests | Totalshareholders'equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Specialreserve | Surplusreserve | Unappropriatedprofit | |||
| I.Closingbalanceoftheprecedingyear | 1,922,365,124.00 | 23,592,702,758.70 | -890,125,318.18 | 9,184,429.12 | 961,182,562.00 | 14,205,879,106.49 | 71,234,238,229.35 | 111,035,426,891.48 |
| Add:Changesinaccountingpolicies | - | - | - | - | - | - | - | - |
| Correctionsofpriorperioderrors | - | - | - | - | - | - | - | - |
| Businesscombinationinvolvingenterprisesundercommoncontrol | - | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - | - |
| II.Openingbalanceoftheperiod | 1,922,365,124.00 | 23,592,702,758.70 | -890,125,318.18 | 9,184,429.12 | 961,182,562.00 | 14,205,879,106.49 | 71,234,238,229.35 | 111,035,426,891.48 |
| III.Changesfortheperiod | - | 254,031,538.43 | -26,209,731.56 | 23,131,406.80 | - | 1,162,757,991.21 | 752,513,556.22 | 2,166,224,761.10 |
| (I)Totalcomprehensiveincome | - | - | -18,696,061.65 | - | - | 1,981,861,324.62 | 3,358,547,276.53 | 5,321,712,539.50 |
| (II)Owners'contributionsandreductionincapital | - | 254,031,538.43 | - | - | - | - | -514,463,334.99 | -260,431,796.56 |
| 1.Ordinarysharescontributedbyshareholders | - | - | - | - | - | - | - | - |
| 2.Capitalcontributionfromholdersofotherequityinstruments | - | - | - | - | - | - | - | - |
| 3.Share-basedpaymentrecognizedinshareholders'equity | - | 3,448,276.71 | - | - | - | - | 2,516,367.90 | 5,964,644.61 |
| 4.Businesscombinationinvolvingenterprisesundercommoncontrol | - | - | - | - | - | - | - | - |
| 5.Others | - | 250,583,261.72 | - | - | - | - | -516,979,702.89 | -266,396,441.17 |
| (III)Profitdistribution | - | - | - | - | - | -826,617,003.32 | -2,118,639,819.08 | -2,945,256,822.40 |
| 1.Transfertosurplusreserve | - | - | - | - | - | - | - | - |
| 2.Transfertogeneralreserve | - | - | - | - | - | - | - | - |
| 3.Distributionstoshareholders | - | - | - | - | - | -826,617,003.32 | -2,025,521,443.67 | -2,852,138,446.99 |
| 4.Others | - | - | - | - | - | - | -93,118,375.41 | -93,118,375.41 |
| (IV)Transferswithinshareholders'equity | - | - | -7,513,669.91 | - | - | 7,513,669.91 | - | - |
| 1.Capitalizationofcapitalreserve | - | - | - | - | - | - | - | - |
| 2.Capitalizationofsurplusreserve | - | - | - | - | - | - | - | - |
| 3.Lossmadeupbysurplusreserve | - | - | - | - | - | - | - | - |
| 4.Others | - | - | -7,513,669.91 | - | - | 7,513,669.91 | - | - |
| (V)Specialreserve | - | - | - | 23,131,406.80 | - | - | 27,069,433.76 | 50,200,840.56 |
| 1.Withdrawnintheperiod | - | - | - | 32,027,158.31 | - | - | 37,984,383.50 | 70,011,541.81 |
| 2.Utilizedintheperiod | - | - | - | -8,895,751.51 | - | - | -10,914,949.74 | -19,810,701.25 |
| (VI)Others | - | - | - | - | - | - | - | - |
| IV.Closingbalanceoftheperiod | 1,922,365,124.00 | 23,846,734,297.13 | -916,335,049.74 | 32,315,835.92 | 961,182,562.00 | 15,368,637,097.70 | 71,986,751,785.57 | 113,201,651,652.58 |
FORTHEPERIODFROM1JANUARYTO30JUNE2022
-10-
ConsolidatedStatementofChangesinShareholders'Equity-continued
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | PriorPeriod | |||||||
| AttributabletoshareholdersoftheCompany | Minorityinterests | Totalshareholders'equity | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Specialreserve | Surplusreserve | Unappropriatedprofit | |||
| I.Closingbalanceoftheprecedingyear | 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 |
| Add:Changesinaccountingpolicies | - | - | - | - | - | - | - | - |
| Correctionsofpriorperioderrors | - | - | - | - | - | - | - | - |
| Businesscombinationinvolvingenterprisesundercommoncontrol | - | - | - | - | - | - | - | - |
| Others | - | 34,528,989.07 | - | - | - | 12,942,703.53 | 77,217,389.86 | 124,689,082.46 |
| II.Openingbalanceoftheperiod | 1,922,365,124.00 | 22,839,598,324.56 | -826,697,303.06 | 10,201,178.30 | 890,690,322.28 | 12,329,120,098.70 | 68,636,378,868.75 | 105,801,656,613.53 |
| III.Changesfortheperiod | - | 116,324,695.54 | -90,101,219.80 | 5,289,542.94 | - | 946,536,599.05 | 1,496,540,433.72 | 2,474,590,051.45 |
| (I)Totalcomprehensiveincome | - | - | -89,607,300.16 | - | - | 1,677,035,346.17 | 2,362,646,834.63 | 3,950,074,880.64 |
| (II)Owners'contributionsandreductionincapital | - | 116,324,695.54 | -493,919.64 | - | - | - | 233,353,705.33 | 349,184,481.23 |
| 1.Ordinarysharescontributedbyshareholders | - | - | - | - | - | - | - | - |
| 2.Capitalcontributionfromholdersofotherequityinstruments | - | - | - | - | - | - | - | - |
| 3.Share-basedpaymentrecognizedinshareholders'equity | - | 5,859,913.77 | - | - | - | - | 4,913,360.76 | 10,773,274.53 |
| 4.Businesscombinationinvolvingenterprisesundercommoncontrol | - | -38,392,129.42 | - | - | - | - | - | -38,392,129.42 |
| 5.Others | - | 148,856,911.19 | -493,919.64 | - | - | - | 228,440,344.57 | 376,803,336.12 |
| (III)Profitdistribution | - | - | - | - | - | -730,498,747.12 | -1,105,762,332.14 | -1,836,261,079.26 |
| 1.Transfertosurplusreserve | - | - | - | - | - | - | - | - |
| 2.Transfertogeneralreserve | - | - | - | - | - | - | - | - |
| 3.Distributionstoshareholders | - | - | - | - | - | -730,498,747.12 | -1,012,637,696.25 | -1,743,136,443.37 |
| 4.Others | - | - | - | - | - | - | -93,124,635.89 | -93,124,635.89 |
| (IV)Transferswithinshareholders'equity | - | - | - | -1,815,265.74 | - | - | - | -1,815,265.74 |
| 1.Capitalizationofcapitalreserve | - | - | - | - | - | - | - | - |
| 2.Capitalizationofsurplusreserve | - | - | - | - | - | - | - | - |
| 3.Lossmadeupbysurplusreserve | - | - | - | - | - | - | - | - |
| 4.Others | - | - | - | -1,815,265.74 | - | - | - | -1,815,265.74 |
| (V)Specialreserve | - | - | - | 7,104,808.68 | - | - | 6,302,225.90 | 13,407,034.58 |
| 1.Withdrawnintheperiod | - | - | - | 23,456,646.73 | - | - | 28,184,953.20 | 51,641,599.93 |
| 2.Utilizedintheperiod | - | - | - | -16,351,838.05 | - | - | -21,882,727.30 | -38,234,565.35 |
| (VI)Others | - | - | - | - | - | - | - | - |
| IV.Closingbalanceoftheperiod | 1,922,365,124.00 | 22,955,923,020.10 | -916,798,522.86 | 15,490,721.24 | 890,690,322.28 | 13,275,656,697.75 | 70,132,919,302.47 | 108,276,246,664.98 |
Theaccompanyingnotesformpartofthefinancialstatements.
FORTHEPERIODFROM1JANUARYTO30JUNE2022
-11-
StatementofChangesinShareholders'EquityoftheCompany
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | CurrentPeriod | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Specialreserve | Surplusreserve | Unappropriatedprofit | Totalshareholders'equity | |
| I.Closingbalanceoftheprecedingyear | 1,922,365,124.00 | 27,594,079,596.13 | 105,412,294.52 | - | 961,182,562.00 | 2,729,507,111.31 | 33,312,546,687.96 |
| Add:Changesinaccountingpolicies | - | - | - | - | - | - | - |
| Correctionsofpriorperioderrors | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - |
| II.Openingbalanceoftheperiod | 1,922,365,124.00 | 27,594,079,596.13 | 105,412,294.52 | - | 961,182,562.00 | 2,729,507,111.31 | 33,312,546,687.96 |
| III.Changesfortheperiod | - | 6,143,196.15 | -7,013,999.70 | - | - | -292,936,889.36 | -293,807,692.91 |
| (I)Totalcomprehensiveincome | - | - | 498,042.27 | - | - | 526,168,071.99 | 526,666,114.26 |
| (II)Owners'contributionsandreductionincapital | - | 6,143,196.15 | - | - | - | - | 6,143,196.15 |
| 1.Ordinarysharescontributedbyshareholders | - | - | - | - | - | - | - |
| 2.Share-basedpaymentrecognizedinshareholders'equity | - | 4,805,671.45 | - | - | - | - | 4,805,671.45 |
| 3.Others | - | 1,337,524.70 | - | - | - | 1,337,524.70 | |
| (III)Profitdistribution | - | - | - | - | - | -826,617,003.32 | -826,617,003.32 |
| 1.Transfertosurplusreserve | - | - | - | - | - | - | - |
| 2.Transfertogeneralreserve | - | - | - | - | - | - | - |
| 3.Distributionstoshareholders | - | - | - | - | - | -826,617,003.32 | -826,617,003.32 |
| 4.Others | - | - | - | - | - | - | - |
| (IV)Transferswithinshareholders'equity | - | - | -7,512,041.97 | - | - | 7,512,041.97 | - |
| 1.Capitalizationofcapitalreserve | - | - | - | - | - | - | - |
| 2.Capitalizationofsurplusreserve | - | - | - | - | - | - | - |
| 3.Lossmadeupbysurplusreserve | - | - | - | - | - | - | - |
| 4.Others | - | - | -7,512,041.97 | - | - | 7,512,041.97 | - |
| (V)Specialreserve | - | - | - | - | - | - | - |
| 1.Withdrawnintheperiod | - | - | - | - | - | - | - |
| 2.Utilizedintheperiod | - | - | - | - | - | - | - |
| (VI)Others | - | - | - | - | - | - | - |
| IV.Closingbalanceoftheperiod | 1,922,365,124.00 | 27,600,222,792.28 | 98,398,294.82 | - | 961,182,562.00 | 2,436,570,221.95 | 33,018,738,995.05 |
FORTHEPERIODFROM1JANUARYTO30JUNE2022
-12-
StatementofChangesinShareholders'EquityoftheCompany-continued
RMB
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | PriorPeriod | ||||||
| Sharecapital | Capitalreserve | Othercomprehensiveincome | Specialreserve | Surplusreserve | Unappropriatedprofit | Totalshareholders'equity | |
| I.Closingbalanceoftheprecedingyear | 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 |
| Add:Changesinaccountingpolicies | - | - | - | - | - | - | - |
| Correctionsofpriorperioderrors | - | - | - | - | - | - | - |
| Others | - | - | - | - | - | - | - |
| II.Openingbalanceoftheperiod | 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 |
| III.Changesfortheperiod | - | 8,831,939.94 | 412,500.00 | - | - | 2,231,060.28 | 11,475,500.22 |
| (I)Totalcomprehensiveincome | - | - | 412,500.00 | - | - | 732,729,807.40 | 733,142,307.40 |
| (II)Owners'contributionsandreductionincapital | - | 8,831,939.94 | - | - | - | - | 8,831,939.94 |
| 1.Ordinarysharescontributedbyshareholders | - | - | - | - | - | - | - |
| 2.Share-basedpaymentrecognizedinshareholders'equity | - | 8,831,939.94 | - | - | - | - | 8,831,939.94 |
| 3.Others | - | - | - | - | - | - | - |
| (III)Profitdistribution | - | - | - | - | - | -730,498,747.12 | -730,498,747.12 |
| 1.Transfertosurplusreserve | - | - | - | - | - | - | - |
| 2.Transfertogeneralreserve | - | - | - | - | - | - | - |
| 3.Distributionstoshareholders | - | - | - | - | - | -730,498,747.12 | -730,498,747.12 |
| 4.Others | - | - | - | - | - | - | - |
| (IV)Transferswithinshareholders'equity | - | - | - | - | - | - | - |
| 1.Capitalizationofcapitalreserve | - | - | - | - | - | - | - |
| 2.Capitalizationofsurplusreserve | - | - | - | - | - | - | - |
| 3.Lossmadeupbysurplusreserve | - | - | - | - | - | - | - |
| 4.Others | - | - | - | - | - | - | - |
| (V)Specialreserve | - | - | - | - | - | - | - |
| 1.Withdrawnintheperiod | - | - | - | - | - | - | - |
| 2.Utilizedintheperiod | - | - | - | - | - | - | - |
| (VI)Others | - | - | - | - | - | - | - |
| IV.Closingbalanceoftheperiod | 1,922,365,124.00 | 27,600,679,342.67 | 105,948,722.50 | - | 890,690,322.28 | 2,444,741,305.54 | 32,964,424,816.99 |
Theaccompanyingnotesformpartofthefinancialstatements.
-13-
(I)GENERALINFORMATIONOFTHECOMPANY
ChinaMerchantsPortGroupCompanyLimited(hereinafterreferredtoasthe"Company")wasastocklimitedcompanyincorporatedinShenzhen,GuangdongProvince,on16January1993.TheheadquarteroftheCompanyislocatedinShenzhen,GuangdongProvince.TheCompanyanditssubsidiaries(collectivelythe"Group")areprincipallyengagedintherenderingofportservice,bondedlogisticsserviceandotherbusinessessuchaspropertydevelopmentandinvestment.TheCompany'sandconsolidatedfinancialstatementshavebeenapprovedbytheBoardofDirectorson29August2022.SeeNotes(X)"EquityinOtherEntities"fordetailsofthescopeofconsolidatedfinancialstatementsinthecurrentyear.SeeNote(IX)"ChangesinScopeofConsolidation"fordetailsofchangesinthescopeofconsolidatedfinancialstatementsinthecurrentperiod.(II)BASISOFPREPARATIONOFFINANCIALSTATEMENTS
BasisofpreparationoffinancialstatementsTheGrouphasadoptedtheAccountingStandardsforBusinessEnterprises("ASBE")issuedbytheMinistryofFinance("MoF").Inaddition,theGrouphasdisclosedrelevantfinancialinformationinaccordancewithInformationDisclosureandPresentationRulesforCompaniesOfferingSecuritiestothePublicNo.15-GeneralProvisionsonFinancialReporting(Revisedin2014).GoingconcernAsat30June2022,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsofRMB5,208,299,165.95.On30June2022,theGrouphadavailableandunusedlineofcreditamountingtoRMB62,195,186,155.77,whichisgreaterthanthebalanceofthenetcurrentliabilities.TheGroupcanobtainfinancialsupportfromtheavailablelineofcreditwhenneeded.Therefore,thefinancialstatementshavebeenpreparedonagoingconcernbasis.(III)STATEMENTOFCOMPLIANCEWITHTHEASBE
ThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewithASBE,andpresenttrulyandcompletely,theCompany'sandconsolidatedfinancialpositionasof30June2022,andtheCompany'sandconsolidatedresultsofoperationsandcashflowsfortheyearthenended.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES
1.AccountingperiodTheGrouphasadoptedthecalendaryearasitsaccountingyear,e.g.from1Januaryto31December.
2.OperatingcycleAnoperatingcyclereferstotheperiodsincewhenanenterprisepurchasesassetsforprocessingpurposetilltherealizationofthoseassetsincashorcashequivalents.TheGroupisprincipallyengagedintherenderingofportservice,bondedlogisticsserviceandotherbusinessessuchaspropertydevelopmentandinvestmentwithoneyearbeinganoperatingcycle.
3.FunctionalcurrencyRenminbi("RMB")isthecurrencyoftheprimaryeconomicenvironmentinwhichtheCompanyanditsdomesticsubsidiariesoperate.Therefore,theCompanyanditsdomesticsubsidiarieschooseRMBastheirfunctionalcurrency.TheCompany'ssubsidiarieschoosetheirfunctionalcurrencyonthebasisoftheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadoptsRMBtoprepareitsfinancialstatements.
4.BasisofaccountingandprincipleofmeasurementTheGrouphasadoptedtheaccrualbasisofaccounting.Exceptforcertainfinancialinstrumentswhicharemeasuredatfairvalue,theGroupadoptsthehistoricalcostastheprincipleofmeasurementofthefinancialstatements.Uponbeingrestructuredintoastockcompany,thefixedassetsandintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.Wherethehistoricalcostisadoptedasthemeasurementbasis,assetsarerecordedattheamountofcashorcashequivalentspaidorthefairvalueoftheconsiderationgiventoacquirethematthetimeoftheiracquisition.Liabilitiesarerecordedattheamountofproceedsorassetsreceivedorthecontractualamountsforassumingthepresentobligation,or,attheamountsofcashorcashequivalentsexpectedtobepaidtosettletheliabilitiesinthenormalcourseofbusiness.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate,regardlessofwhetherthatpriceisdirectlyobservableorestimatedusingvaluationtechnique.Fairvaluemeasurementand/ordisclosureinthefinancialstatementsaredeterminedaccordingtotheabovebasis.Afairvaluemeasurementofanon-financialassettakesintoaccountamarketparticipant'sabilitytogenerateeconomicbenefitsbyusingtheassetsinitshighestandbestuseorbysellingittoanothermarketparticipantthatwouldusetheassetinitshighestandbestuse.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
4.Basisofaccountingandprincipleofmeasurement-continuedForfinancialassetswhicharetransferredattransactionpriceuponinitialrecognitionandavaluationtechniquethatunobservableinputistobeusedtomeasurefairvalueinsubsequentperiods,thevaluationtechniqueiscalibratedsothatatinitialrecognitiontheresultsofthevaluationtechniqueequalsthetransactionprice.FairvaluemeasurementsarecategorizedintoLevel1,2or3basedonthedegreetowhichtheinputstothefairvaluemeasurementsareobservableandthesignificanceoftheinputstothefairvaluemeasurementinitsentirety,whicharedescribedasfollows:
?Level1inputsareunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthat
theentitycanaccessatthemeasurementdate;?Level2inputsareinputs,otherthanquotedpricesincludedwithinLevel1,thatareobservablefortheassetorliability,eitherdirectlyorindirectly;and?Level3inputsareunobservableinputsfortheassetorliability.
5.BusinesscombinationsBusinesscombinationsareclassifiedintobusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsnotinvolvingenterprisesundercommoncontrol.
5.1BusinesscombinationsinvolvingenterprisesundercommoncontrolAbusinesscombinationinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Assetsandliabilitiesobtainedshallbemeasuredattheirrespectivecarryingamountsasrecordedbythecombiningentitiesatthedateofthecombination.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombinationisadjustedtothesharepremiumincapitalreserve.Ifthesharepremiumisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.Coststhataredirectlyattributabletothecombinationarechargedtoprofitorlossintheperiodinwhichtheyareincurred.
5.2BusinesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwillAbusinesscombinationnotinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbeforeandafterthecombination.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
5.Businesscombinations-continued
5.2Businesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwill-continuedThecostofcombinationistheaggregateofthefairvalues,attheacquisitiondate,oftheassetsgiven,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquiree.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.Anychangesoradjustmentsareincludedinprofitorlossforthecurrentperiod.Wherethecostofcombinationexceedstheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,thedifferenceistreatedasanassetandrecognizedasgoodwill,whichismeasuredatcostoninitialrecognition.Wherethecostofcombinationislessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerreassessesthemeasurementofthefairvaluesoftheacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesandmeasurementofthecostofcombination.Ifafterthatreassessment,thecostofcombinationisstilllessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerrecognizestheremainingdifferenceimmediatelyinprofitorlossforthecurrentperiod.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
5.Businesscombinations-continued
5.2Businesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwill-continuedIfeitherthefairvaluesofidentifiableassets,liabilitiesandcontingentliabilitiesacquiredinacombinationorthecostofbusinesscombinationcanbedeterminedonlyprovisionallybytheendoftheperiodinwhichthebusinesscombinationwaseffected,theacquirerrecognisesandmeasuresthecombinationusingthoseprovisionalvalues.Anyadjustmentstothoseprovisionalvalueswithintwelvemonthsaftertheacquisitiondatearetreatedasiftheyhadbeenrecognisedandmeasuredontheacquisitiondate.Goodwillarisingonabusinesscombinationismeasuredatcostlessaccumulatedimpairmentlosses,andispresentedseparatelyintheconsolidatedfinancialstatements.Forthepurposeofimpairmenttesting,goodwillisconsideredtogetherwiththerelatedassetsgroups,i.e.,goodwillisreasonablyallocatedtotherelatedassetsgroupsoreachofassetsgroupsexpectedtobenefitfromthesynergiesofthecombination.Intestinganassetsgroupwithgoodwillforimpairment,animpairmentlossisrecognizediftherecoverableamountoftheassetsgrouporsetsofassetsgroups(includinggoodwill)islessthanitscarryingamount.Theimpairmentlossisfirstlyallocatedtoreducethecarryingamountofanygoodwillallocatedtosuchassetsgrouporsetsofassetsgroups,andthentotheotherassetsofthegrouppro-ratabasisonthebasisofthecarryingamountofeachasset(otherthangoodwill)inthegroup.Recoverableamountisthehigherofthefairvalueofanassetlesscostofdisposalandthepresentvalueoftheasset’sestimatedfuturecashflows.Theimpairmentlossofgoodwillisrecognisedinprofitorlossfortheperiodanddoesnotreverseinsubsequentperiods.
6.ConsolidatedfinancialstatementsThescopeofconsolidationintheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlexistswhentheinvestorhaspowerovertheinvestee;isexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytouseitspowerovertheinvesteetoaffectitsreturns.TheGroupreassesseswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechangesoftheaboveelementsofthedefinitionofcontrol.ConsolidationofasubsidiarybeginswhentheGroupobtainscontroloverthesubsidiariesandceaseswhentheGrouplosescontrolofthesubsidiary.ForasubsidiaryalreadydisposedofbytheGroup,theoperatingresultsandcashflowsbeforethedateofdisposal(thedatewhencontrolislost)areincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriate.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
6.Consolidatedfinancialstatements-continuedForsubsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesnotundercommoncontrol,theoperatingresultsandcashflowsfromtheacquisitiondate(thedatewhencontrolisobtained)areincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriate.Nomatterwhenthebusinesscombinationoccursinthereportingperiod,subsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrolorthepartybeingabsorbedundermergerbyabsorptionareincludedintheGroup'sscopeofconsolidationasiftheyhadbeenincludedinthescopeofconsolidationfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingparty.Theiroperatingresultsandcashflowsfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingpartyareincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriate.ThesignificantaccountingpoliciesandaccountingperiodsadoptedbythesubsidiariesaredeterminedbasedontheuniformaccountingpoliciesandaccountingperiodssetoutbytheCompany.WheretheaccountingpoliciesandaccountingperiodsadoptedbysubsidiariesareinconsistentwiththoseoftheCompany,appropriateadjustmentsaremadetothesubsidiaries'financialstatementsinaccordancewiththeaccountingpoliciesoftheCompany.Allsignificantintra-groupbalancesandtransactionsareeliminatedonconsolidation.Theportionofsubsidiaries'equitythatisnotattributabletotheparentistreatedasminorityinterestsandpresentedas"minorityinterests"intheconsolidatedbalancesheetundershareholders'equity.Theportionofnetprofitsorlossesofsubsidiariesfortheperiodattributabletominorityinterestsispresentedas"minorityinterests"intheconsolidatedincomestatementunderthe"netprofit"lineitem.Theportionofcomprehensiveincomeofsubsidiariesfortheperiodattributabletominorityinterestsispresentedas"totalcomprehensiveincomeattributabletominorityshareholders"underthe"totalcomprehensiveincome"intheconsolidatedincomestatement.Whentheamountoflossfortheperiodattributabletotheminorityshareholdersofasubsidiaryexceedstheminorityshareholders'portionoftheopeningbalanceofshareholders'equityofthesubsidiary,theexcessamountisstillallocatedagainstminorityinterests.Acquisitionofminorityinterestsordisposalsofinterestsinasubsidiarythatdonotresultinthelossofcontroloverthesubsidiaryareaccountedforasequitytransactions.ThecarryingamountsoftheCompany'sinterestsandminorityinterestsareadjustedtoreflectthechangesintheirrelativeinterestsinthesubsidiary.Thedifferencebetweentheamountbywhichtheminorityinterestsareadjustedandthefairvalueoftheconsiderationpaidorreceivedisadjustedtocapitalreserve.Ifthecapitalreserveisnotsufficienttoabsorbthedifference,theexcessareadjustedagainstretainedearnings.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
6.Consolidatedfinancialstatements-continuedForthestepwiseacquisitionofequityinteresttillacquiringcontrolafterafewtransactionsandleadingtobusinesscombinationnotinvolvingenterprisesundercommoncontrol,thisshouldbedealtwithbasedonwhetherthisbelongsto'packagedeal':ifitbelongsto'packagedeal',transactionswillbedealtastransactionstoacquirecontrol.Ifitdoesnotbelongto'packagedeal',transactionstoacquirecontrolonacquisitiondatewillbeunderaccountingtreatment,thefairvalueofacquirees'sharesheldbeforeacquisitiondatewillberevalued,andthedifferencebetweenfairvalueandbookvaluewillberecognizedinprofitorlossofthecurrentperiod;ifacquirees'sharesheldbeforeacquisitiondateinvolveinchangesofothercomprehensiveincomeandotherequityofownersunderequitymethod,thiswillbetransferredtoincomeofacquisitiondate.WhentheCompanylosescontroloverasubsidiaryduetodisposalofequityinvestmentorotherreasons,anyretainedinterestisre-measuredatitsfairvalueatthedatewhencontrolislost.Thedifferencebetween(i)theaggregateoftheconsiderationreceivedondisposalandthefairvalueofanyretainedinterestand(ii)theshareoftheformersubsidiary'snetassetscumulativelycalculatedfromtheacquisitiondateaccordingtotheoriginalproportionofownershipinterestsisrecognizedasinvestmentincomeintheperiodinwhichcontrolislost,andthegoodwillisoffsetaccordingly.Othercomprehensiveincomeassociatedwithinvestmentintheformersubsidiaryisreclassifiedtoinvestmentincomeintheperiodinwhichcontrolislost.WhentheCompanylosescontrolofasubsidiaryintwoormorearrangements(transactions),termsandconditionsofthearrangements(transactions)andtheireconomiceffectsareconsidered.OneormoreofthefollowingindicatethattheCompanyshallaccountforthemultiplearrangementsasa'packagedeal':(i)theyareenteredintoatthesametimeorincontemplationofeachother;(ii)theyformacompletetransactiondesignedtoachieveanoverallcommercialeffect;(iii)theoccurrenceofonetransactionisdependentontheoccurrenceofatleastoneothertransaction;(iv)onetransactionaloneisnoteconomicallyjustified,butitiseconomicallyjustifiedwhenconsideredtogetherwithothertransactions.Wherethetransactionsofdisposalofequityinvestmentsinasubsidiaryuntilthelossofcontrolareassessedasapackagedeal,thesetransactionsareaccountedforasonetransactionofdisposalofasubsidiarywithlossofcontrol.Beforelosingcontrol,thedifferenceofconsiderationreceivedondisposalandtheshareofnetassetsofthesubsidiarycontinuouslycalculatedfromacquisitiondateisrecognizedasothercomprehensiveincome.Whenlosingcontrol,thecumulatedothercomprehensiveincomeistransferredtoprofitorlossoftheperiodoflosingcontrol.Ifthetransactionsofdisposalofequityinvestmentsinasubsidiaryarenotassessedasapackagedeal,thesetransactionsareaccountedforasunrelatedtransactions.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
7.JointarrangementsJointarrangementreferstothearrangementjointlycontrolledbytwoormorethantwoparticipants.TheGroup'sjointarrangementshavethefollowingcharacteristics:(1)alltheparticipantsarerestrictedbythearrangement;(2)thearrangementisjointlycontrolledbytwoormorethantwoparticipants.Anyparticipantcannotcontrolthearrangementseparatelyandanyparticipanttothejointcontrolofthearrangementcanstopotherparticipantsorthegroupofparticipantsfromtheseparatecontroloverthearrangement.Jointcontrolreferstothejointcontroloveranarrangementinaccordancewithrelevantagreementsandrelevantactivitiesofthearrangementshallbedecidedaftertheunanimousconsentbyparticipantssharingthecontrollingrights.Therearetwotypesofjointarrangements-jointoperationsandjointventures.Ajointoperationisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstotheassets,andobligationsfortheliabilities,relatingtothearrangement.Ajointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthearrangement.
8.CashandcashequivalentsCashcomprisescashonhandanddepositsthatcanbereadilywithdrawnondemand.CashequivalentsaretheGroup'sshort-term(generallyduewithin3monthssincetheacquisitiondate),highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.
9.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancial
statementsdenominatedinforeigncurrencies
9.1TransactionsdenominatedinforeigncurrenciesAforeigncurrencytransactionisrecorded,oninitialrecognition,byapplyingthespotexchangerateonthedateofthetransaction.Atthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedintofunctionalcurrencyusingthespotexchangeratesatthebalancesheetdate.Exchangedifferencesarisingfromthedifferencesbetweenthespotexchangeratesprevailingatthebalancesheetdateandthoseoninitialrecognitionoratthepreviousbalancesheetdatearerecognizedinprofitorlossfortheperiod,exceptthat(1)exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencythatqualifyforcapitalizationarecapitalizedaspartofthecostofthequalifyingassetduringthecapitalizationperiod;(2)exchangedifferencesrelatedtohedginginstrumentsforthepurposeofhedgingagainstforeigncurrencyrisksareaccountedforusinghedgeaccounting;(3)exchangedifferencesarisingfromchangesinthecarryingamounts(otherthantheamortisedcost)ofmonetaryitemsatfairvaluethroughothercomprehensiveincomearerecognisedasothercomprehensiveincome.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
9.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancial
statementsdenominatedinforeigncurrencies-continued
9.1Transactionsdenominatedinforeigncurrencies-continuedWhentheconsolidatedfinancialstatementsincludeforeignoperation(s),ifthereisforeigncurrencymonetaryitemconstitutinganetinvestmentinaforeignoperation,exchangedifferencearisingfromchangesinexchangeratesarerecognizedas"exchangedifferencesarisingontranslationoffinancialstatementsdenominatedinforeigncurrencies"inothercomprehensiveincome,andinprofitandlossfortheperiodupondisposaloftheforeignoperation.Foreigncurrencynon-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.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
9.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancial
statementsdenominatedinforeigncurrencies-continued
9.2Translationoffinancialstatementsdenominatedinforeigncurrencies-continuedOndisposaloftheGroup'sentireinterestinaforeignoperation,oruponalossofcontroloveraforeignoperationduetodisposalofcertaininterestinitorotherreasons,theGrouptransferstheaccumulatedexchangedifferencesarisingontranslationoffinancialstatementsofthisforeignoperationattributabletotheowners'equityoftheCompanyandpresentedunderothercomprehensiveincome,toprofitorlossintheperiodinwhichthedisposaloccurs.IncaseofadisposalofpartequityinvestmentsorotherreasonleadingtolowerinterestpercentageinforeignoperationsbutdoesnotresultintheGrouplosingcontroloveraforeignoperation,theexchangedifferencesarisingfromthetranslationofforeigncurrencystatementsrelatedtothisdisposedpartarere-attributedtominorityinterestsandarenotrecognizedinprofitandloss.Forpartialdisposalsofequityinterestsinforeignoperationswhichareassociatesorjointventures,theproportionateshareoftheaccumulatedexchangedifferencesarisingontranslationofstatementsofforeignoperationsisreclassifiedtoprofitorloss.
10.FinancialinstrumentsTheGrouprecognizesafinancialassetorafinancialliabilitywhenitbecomesapartytothecontractualprovisionsofafinancialinstrument.Allregularwaypurchasesorsalesoffinancialassetsarerecognizedandderecognizedonatradedatebasis.Financialassetsandfinancialliabilitiesareinitiallymeasuredatfairvalue.Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorlossfortheperiod,relevanttransactioncostsaredirectlyrecognizedinprofitorloss;transactioncostsrelatingtoothercategoriesoffinancialassetsandfinancialliabilitiesareincludedinthevalueinitiallyrecognized.ForaccountsreceivableandnotesreceivablerecognizedthatdonotcontainasignificantfinancingcomponentorafinancingcomponentincludedinthecontractslessthanoneyearwhicharenotconsideredbytheGroup,whicharewithinthescopeofAccountingStandardforBusinessEnterprisesNo.14-Revenue(hereinafterreferredtoas"revenuestandards"),transactionpricesdefinedinthestandardsshallbeadoptedoninitialrecognition.Theeffectiveinterestmethodisamethodthatisusedinthecalculationoftheamortizedcostofafinancialassetorafinancialliabilityandintheallocationoftheinterestincomeorinterestexpenseinprofitorlossovertherelevantperiod.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continuedTheeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashflowsthroughtheexpectedlifeofthefinancialassetorfinancialliabilitytothegrosscarryingamountofafinancialassetortotheamortizedcostofafinancialliability.Whencalculatingtheeffectiveinterestrate,theGroupestimatesfuturecashflowsbyconsideringallthecontractualtermsofthefinancialassetorfinancialliability(forexample,prepayment,extension,calloptionorsimilaroptions)butshallnotconsidertheexpectedcreditlosses.Theamortizedcostofafinancialassetorafinancialliabilityistheamountofafinancialassetorafinancialliabilityinitiallyrecognizednetofprincipalrepaid,plusorlessthecumulativeamortizedamountarisingfromamortizationofthedifferencebetweentheamountinitiallyrecognizedandtheamountatthematuritydateusingtheeffectiveinterestmethod,netofcumulativecreditlossallowance(onlyapplicabletofinancialassets).
10.1Classification,recognitionandmeasurementoffinancialassetsSubsequenttoinitialrecognition,theGroup'sfinancialassetsofvariouscategoriesaresubsequentlymeasuredatamortizedcost,atfairvaluethroughothercomprehensiveincomeoratfairvaluethroughprofitorloss.Ifcontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,andthefinancialassetisheldwithinabusinessmodelwhoseobjectiveistoholdfinancialassetsinordertocollectcontractualcashflows,suchassetisclassifiedintofinancialassetsmeasuredatamortizedcost,whichincludecashandbankbalances,notesreceivable,accountsreceivable,otherreceivables,debtinvestments,andlong-termreceivablesandetc.Financialassetsthatmeetthefollowingconditionsaresubsequentlymeasuredatfairvaluethroughothercomprehensiveincome("FVTOCI"):thefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandselling;andthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.AccountsreceivableandnotesreceivableclassifiedasFVTOCIatacquisitionarepresentedasfinancingreceivables,andthosewhoseperiodwithinoneyear(inclusive)uponacquisitionarepresentedasothercurrentassets.Thosewhoseperiodoveroneyearuponacquisitionarepresentedasotherdebtinvestment,thosewillfallduewithinoneyear(inclusive)sincethebalancesheetdatearepresentedasnon-currentassetsduewithinoneyear
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.1Classification,recognitionandmeasurementoffinancialassets-continuedOninitialrecognition,theGroupmayirrevocablydesignatenon-tradingequityinstruments,otherthancontingentconsiderationrecognizedthroughbusinesscombinationnotinvolvingenterprisesundercommoncontrol,asfinancialassetsatFVTOCIonanindividualbasis.SuchfinancialassetsatFVTOCIarepresentedasotherequityinstrument.Afinancialassetisclassifiedasheldfortradingifoneofthefollowingconditionsissatisfied:
?Ithasbeenacquiredprincipallyforthepurposeofsellinginthenearterm;or?OninitialrecognitionitispartofaportfolioofidentifiedfinancialinstrumentsthattheGroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-termprofit-taking;or?Itisaderivativethatisnotafinancialguaranteecontractordesignatedandeffectiveasa
hedginginstrument.Financialassetsmeasuredatfairvaluethroughprofitorloss("FVTPL")includethoseclassifiedasfinancialassetsatFVTPLandthosedesignatedasfinancialassetsatFVTPL.?AnyfinancialassetsthatdoesnotqualifyforamortizedcostmeasurementormeasurementatFVTOCIordesignatedatFVTOCIareclassifiedintofinancialassetsatFVTPL.?Uponinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatch,
theGroupwillirrevocablydesignateditasfinancialliabilitiesatFVTPL.FinancialassetsatFVTPLassetsotherthanderivativefinancialassetsarepresentedas"held-for-tradingfinancialassets".SuchfinancialassetsatFVTPLwhichmayfallduemorethanoneyear(orwithoutfixedterm)sincethebalancesheetdateandwillbeheldmorethanoneyeararepresentedasothernon-currentfinancialassets.
10.1.1FinancialassetsmeasuredatamortizedcostFinancialassetsmeasuredatamortizedcostaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestmethod.Gainorlossarisingfromimpairmentorderecognitionisrecognizedinprofitorloss.Forfinancialassetsmeasuredatamortizedcost,theGrouprecognizesinterestincomeusingeffectiveinterestmethod.TheGroupcalculatesandrecognizesinterestincomethroughbookvalueoffinancialassetsmultiplyingeffectiveinterest,exceptforthefollowingcircumstances:
?Forpurchasedororiginatedcredit-impairedfinancialassetswithcreditimpairment,the
Groupcalculatesandrecognizesitsinterestincomebasedonamortizedcostofthefinancial
assetandtheeffectiveinterestthroughcreditadjustmentsinceinitialrecognition.
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10.Financialinstruments-continued
10.1Classification,recognitionandmeasurementoffinancialassets-continued
10.1.2FinancialassetsatFVTOCIImpairmentlossesorgainsrelatedtofinancialassetsatFVTOCI,interestincomemeasuredusingeffectiveinterestmethodandexchangegainsorlossesarerecognizedintoprofitorlossforthecurrentperiod,exceptfortheabovecircumstances,changesinfairvalueofthefinancialassetsareincludedinothercomprehensiveincome.Amountschargedtoprofitorlossforeveryperiodequaltotheamountchargedtoprofitorlossasitismeasuredatamortizedcosts.Whenthefinancialassetisderecognized,thecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeshallberemovedfromothercomprehensiveincomeandrecognizedinprofitorloss.Changesinfairvalueofnon-tradingequityinstrumentinvestmentsdesignatedasfinancialassetsatFVTOCIarerecognizedinothercomprehensiveincome,andthecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeallocatedtothepartderecognizedaretransferredandincludedinretainedearnings.DuringtheperiodinwhichtheGroupholdsthenon-tradingequityinstruments,revenuefromdividendsisrecognizedinprofitorlossforthecurrentperiodwhen(1)theGrouphasestablishedtherightofcollectingdividends;(2)itisprobablethattheassociatedeconomicbenefitswillflowtotheGroup;and(3)theamountofdividendscanbemeasuredreliably.
10.1.3FinancialassetsatFVTPLFinancialassetsatFVTPLaresubsequentlymeasuredatfairvalue.Gainorlossarisingfromchangesinfairvaluesanddividendsandinterestsrelatedtothefinancialassetsarerecognizedinprofitorloss.
10.2ImpairmentoffinancialinstrumentsTheGroupmakesaccountingtreatmentonimpairmentandrecognizeslossallowanceforexpectedcreditlosses("ECL")onfinancialassetsmeasuredatamortizedcost,financialassetsclassifiedasatFVTOCI,leasereceivables,contractassets,loancommitmentsthatarenotfinancialliabilitiesatFVTPL,financialliabilitiesnotmeasuredatFVTPL,financialguaranteecontractsarisingfromtransferoffinancialassetswhichdoesnotsatisfyderecognitioncriteriaorcontinuinginvolvementoftransferredfinancialassets.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.2Impairmentoffinancialinstruments-continuedTheGroupmakesalossallowanceagainstamountoflifetimeECLofthecontractassets,notesreceivableandaccountsreceivablearisingfromtransactionsadoptingtheRevenueStandardaswellasleasereceivablesarisingfromtransactionsadoptingASBENo.21-Leases.Forotherfinancialinstrument,otherthanpurchasedororiginatedcredit-impairedfinancialassets,theGroupassesseschangesincreditrisksoftherelevantfinancialassetsinceinitialrecognitionateachbalancesheetdate.Ifthecreditlossofthefinancialinstrumenthasbeensignificantlyincreasedsinceinitialrecognition,theGroupwillmakealossallowanceatanamountofexpectedcreditlossduringthewholelife;ifnot,theGroupwillmakealossallowanceforthefinancialinstrumentatanamountinthefuture12-monthexpectedcreditlosses.ExceptforthefinancialassetsclassifiedasatFVTOCI,increaseinorreversalofcreditlossallowanceisincludedinprofitorlossasloss/gainonimpairment.ForthefinancialassetsclassifiedasatFVTOCI,theGrouprecognizescreditlossallowanceinothercomprehensiveincomeandrecognizestheloss/gainonimpairmentinprofitorloss,whiletheGroupdoesnotdecreasethecarryingamountofsuchfinancialassetsinthebalancesheet.TheGrouphasmakesalossallowanceagainstamountofexpectedcreditlossesduringthewholelifeintheprioraccountingperiod.However,atthebalancesheetdate,thecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition;theGroupwillmeasurethelossallowanceforthatfinancialinstrumentatanamountinthefuture12-monthexpectedcreditlosses.Reversedamountoflossallowancearisingfromsuchcircumstancesshallbeincludedinprofitorlossasimpairmentgains.
10.2.1SignificantincreaseofcreditriskInassessingwhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition,theGroupcomparestheriskofadefaultoccurringonthefinancialinstrumentasatthereportingdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognition.Forloancommitmentsandfinancialguaranteecontracts,thedatethattheGroupbecomesapartytotheirrevocablecommitmentisconsideredtobethedateofinitialrecognitionintheapplicationofcriteriarelatedtothefinancialinstrumentforimpairment.
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10.2Impairmentoffinancialinstruments-continued
10.2.1Significantincreaseofcreditrisk-continuedInparticular,thefollowinginformationistakenintoaccountwhenassessingwhethercreditriskhasincreasedsignificantly:
(1)Significantchangesininternalpriceindicatorsofcreditriskasaresultofachangein
creditrisk.
(2)Otherchangesintheratesortermsofanexistingfinancialinstrumentthatwouldbe
significantlydifferentiftheinstrumentwasnewlyoriginatedorissuedatthebalancesheetdate(suchasmorestringentcovenants,increasedamountsofcollateralorguarantees,orhigherincomecoverage).
(3)Significantchangesinexternalmarketindicatorsofcreditriskforaparticularfinancial
instrumentorsimilarfinancialinstrumentswiththesameexpectedlife.Theseindicatorsincludethecreditspread,thecreditswappricesfortheborrower,thelengthoftimeortheextenttowhichthefairvalueofafinancialassethasbeenlessthanitsamortizedcostandothermarketinformationrelatedtotheborrower,suchaschangesinthepriceofaborrower'sdebtandequityinstruments.
(4)Significantchangesinactualorexpectedexternalcreditratingforthefinancial
instruments.
(5)Anactualorexpectedinternalcreditratingdowngradefortheborrower.
(6)Adversechangesinbusiness,financialoreconomicconditionsthatareexpectedtocausea
significantchangeinthedebtor'sabilitytomeetitsdebtobligations.
(7)Anactualorexpectedsignificantchangeintheoperatingresultsofthedebtor.
(8)Significantincreasesincreditriskonotherfinancialinstrumentsofthesameborrower.
(9)Significantadversechangeintheregulatory,economic,ortechnologicalenvironmentof
thedebtor.
(10)Significantchangesinthevalueofthecollateralsupportingtheobligationorinthequality
ofthird-partyguaranteesorcreditenhancements,whichareexpectedtoreducethedebtor'seconomicincentivetomakescheduledcontractualpaymentsortootherwisehaveaneffectontheprobabilityofadefaultoccurring.
(11)Significantchangesincircumstancesexpectedtoreducethedebtor'seconomicincentive
tomakescheduledcontractualpayments.
(12)Expectedchangesintheloandocumentationincludinganexpectedbreachofcontractthat
mayleadtocovenantwaiversoramendments,interestpaymentholidays,interestratestep-ups,requiringadditionalcollateralorguarantees,orotherchangestothecontractualframeworkofthefinancialinstrument.
(13)Significantchangesintheexpectedperformanceandbehaviourofthedebtor.
(14)Changesintheentity'screditmanagementapproachinrelationtothefinancialinstrument.
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10.2Impairmentoffinancialinstruments-continued
10.2.1Significantincreaseofcreditrisk-continuedTheGroupassumesthatthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognitionifthefinancialinstrumentisdeterminedtohavelowercreditriskatthebalancesheetdate.Afinancialinstrumentisdeterminedtohavelowercreditriskif:i)ithasalowerriskofdefault,ii)theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandiii)adversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.
10.2.2Credit-impairedfinancialassetsWhentheGroupexpectedoccurrenceofoneormoreeventswhichmaycauseadverseimpactonfuturecashflowsofafinancialasset,thefinancialassetwillbecomeacredit-impairedfinancialassets.Objectiveevidencethatafinancialassetisimpairedincludesbutnotlimitedtothefollowingobservableevents:
(1)Significantfinancialdifficultyoftheissuerordebtor.
(2)Abreachofcontractbythedebtor,suchasadefaultordelinquencyininterestorprincipal
payments.
(3)Thecreditor,foreconomicorlegalreasonsrelatingtothedebtor'sfinancialdifficulty,
grantingaconcessiontothedebtor.
(4)Itbecomingprobablethatthedebtorwillenterbankruptcyorotherfinancialreorganizations.
(5)Thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancial
difficultiesoftheissuerorthedebtor.
(6)Purchaseororiginateafinancialassetwithalargescaleofdiscount,whichreflectsfacts
ofcreditlossincurred.BasedontheGroup'smanagementoftheinternalcreditrisk,whentheinformationrecommendedinternallyorobtainedexternallyindicatesthatthedebtorsofthefinancialinstrumentsareunabletomakethefullreimbursementtothecreditorsincludingtheGroup(notconsideringanyguaranteeobtainedbytheGroup),theGroupthenconsidersthereoccurstheeventofdefault.
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10.2Impairmentoffinancialinstruments-continued
10.2.3DeterminationofexpectedcreditlossLeasereceivablesareassessedforECLindividuallybytheGroup.Inaddition,theGroupusesprovisionmatrixtocalculateECLfornotesreceivable,accountsreceivable,otherreceivables,contractassets,debtinvestmentsandotherdebtinvestmentsbasedonaportfoliobasis.TheGroupclassifiesfinancialinstrumentsintodifferentgroupsbasedoncommonriskcharacteristics.Commoncreditriskcharacteristicsincludecreditriskrating,thedateofinitialrecognition,remainingcontractualmaturity,industryofborrowerandgeographicallocationoftheborroweretc.TheGroupdeterminesexpectedcreditlossesofrelevantfinancialinstrumentsusingthefollowingmethods:
?Forafinancialasset,acreditlossshallbethepresentvalueofthedifferencebetweenthe
contractualcashflowsthatareduetotheGroupunderthecontractandthecashflowsthattheGroupexpectstoreceive.?Foraleasereceivable,acreditlossshallbethepresentvalueofthedifferencebetweenthecontractualcashflowsthatareduetotheGroupunderthecontractandthecashflowsthattheGroupexpectstoreceive.?Forundrawnloancommitments(refertoNoteIV,10.4.1.3forthedetailofaccountingpolicies),theECLshallbethepresentvalueofthedifferencebetweenthecontractualcashflowsthatareduetotheGroupiftheholderoftheloancommitmentsdrawsdowntheloan,andthecashflowsthattheGroupexpectstoreceiveiftheloanisdrawndown.TheGroup'sestimationoftheECLforloancommitmentsisconsistentwithitsexpectationoftheloancommitmentsdrawndown.?Forafinancialguaranteecontract(refertoNoteIV,10.4.1.3forthedetailofaccountingpolicies),theexpectedlossesisthepresentvalueoftheexpectedpaymentstoreimbursetheholderforacreditlossthatitincurslessanyamountsthattheGroupexpectstoreceivefromtheholder,thedebtororanyotherparty.?Forafinancialassetwithcredit-impairedatthebalancesheetdate,butnotpurchasedororiginatedcredit-impaired,acreditlossesisthedifferencebetweentheasset'sgrosscarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthefinancialasset'soriginaleffectiveinterestrate.Thefactorsreflectedinmethodsofmeasurementofexpectedcreditlossesincludeanunbiasedandprobability-weightedamountthatisdeterminedbyevaluatingarangeofpossibleoutcomes;timevalueofmoney;reasonableandsupportableinformationaboutpastevents,currentconditionsandforecastsonfutureeconomicstatusatbalancesheetdatewithoutunnecessaryadditionalcostsorefforts.
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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,thecarryingamountofrelevant
financialliabilitiesisthecarryingamountoffinancialassetstransferredwithcontinuinginvolvementlessfairvalueoftheGroup'sretainedrights(iftheGroupretainsrelevantrightsupontransferoffinancialassets)withadditionoffairvalueofobligationsassumedbytheGroup(iftheGroupassumesrelevantobligationsupontransferoffinancialassets).Accordingly,thefairvalueofrelevantrightsandobligationsshallbemeasuredonanindividualbasis.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.3Transferoffinancialassets-continuedForatransferofafinancialassetinitsentiretythatsatisfiesthederecognitioncriteria,thedifferencebetween(1)thecarryingamountofthefinancialassettransferredatthederecognitiondateand(2)thesumoftheconsiderationreceivedfromthetransferofthefinancialassetandthederecognitionamountcorrespondingtoaccumulatedchangesinfairvalueinitiallyrecordedinothercomprehensiveincomeisrecognizedinprofitorloss.Forthenon-tradableequityinstrumentdesignatedasfinancialassetsatFVTOCI,cumulativegainorlossthathasbeenrecognizedinothercomprehensiveincomeshouldberemovedfromothercomprehensiveincomebutberecognizedinretainedearnings.Forapartoftransferofafinancialassetthatsatisfiesthederecognitioncriteria,thecarryingamountofthetransferredfinancialassetisallocatedbetweenthepartthatisderecognizedandthepartthatiscontinuouslyinvolved,basedontherespectivefairvaluesofthosepartsontransferdate.Thedifferencebetween(1)thesumoftheconsiderationreceivedforthepartderecognizedandanycumulativegainorlossallocatedtothepartderecognizedwhichhasbeenpreviouslyrecognizedinothercomprehensiveincome;and(2)thecarryingamountallocatedtothepartderecognizedonderecognitiondate;isrecognizedinprofitorloss.Forthenon-tradableequityinstrumentdesignatedasfinancialassetsatFVTOCI,cumulativegainorlossthathasbeenrecognizedinothercomprehensiveincomeshouldberemovedfromothercomprehensiveincomebutberecognizedinretainedearnings.Foratransferofafinancialassetinitsentiretythatdoesnotsatisfythederecognitioncriteria,theGroupwillcontinuouslyrecognizethetransferredfinancialassetinitsentirety.Considerationsreceivedduetotransferofassetsshouldberecognizedasafinancialliabilityuponreceipts.
10.4ClassificationoffinancialliabilitiesandequityinstrumentsFinancialinstrumentsissuedbytheGroupareclassifiedintofinancialliabilitiesorequityinstrumentsonthebasisofthesubstanceofthecontractualarrangementsandtheeconomicnaturenotonlyitslegalform,togetherwiththedefinitionoffinancialliabilityandequityinstrumentsoninitialrecognition.
10.4.1Classification,recognitionandmeasurementoffinancialliabilitiesOninitialrecognition,financialliabilitiesareclassifiedintofinancialliabilitiesatFVTPLandotherfinancialliabilities.
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10.4Classificationoffinancialliabilitiesandequityinstruments-continued
10.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued
10.4.1.1FinancialliabilitiesatFVTPLFinancialliabilitiesatFVTPLconsistoffinancialliabilitiesheldfortrading(includingderivativesclassifiedasfinancialliabilities)andthosedesignatedasatFVTPL.Exceptforderivativefinancialliabilitiespresentedseparately,thefinancialliabilitiesatFVTPLarepresentedasheld-for-tradingfinancialliabilities.Afinancialliabilityisclassifiedasheldfortradingifoneofthefollowingconditionsissatisfied:
?Ithasbeenacquiredprincipallyforthepurposeofrepurchasinginthenearterm;or?Oninitialrecognitionitispartofaportfolioofidentifiedfinancialinstrumentsthatthe
GroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-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.
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10.Financialinstruments-continued
10.4Classificationoffinancialliabilitiesandequityinstruments-continued
10.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued
10.4.1.1FinancialliabilitiesatFVTPL-continuedFinancialliabilitiesaremeasuredatFVTPLwhenthefinancialliabilitiesisarisingfromcontingentconsiderationrecognizedbytheGroupasanacquirerinabusinesscombinationnotinvolvingenterprisesundercommoncontrol.
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.
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10.Financialinstruments-continued
10.4Classificationoffinancialliabilitiesandequityinstruments-continued
10.4.2DerecognitionoffinancialliabilitiesTheGroupderecognizesafinancialliability(orpartofit)whentheunderlyingpresentobligation(orpartofit)isdischarged.AnagreementbetweentheGroup(thedebtor)andthecreditortoreplacetheoriginalfinancialliabilitywithanewfinancialliabilitywithsubstantiallydifferenttermsisaccountedforasanextinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.WhentheGroupderecognizesafinancialliabilityorapartofit,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.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.5Derivativesandembeddedderivatives-continuedDerivativesembeddedinhybridcontractswithhoststhatarenotfinancialassetsareseparatedandtreatedasseparatederivativesbytheGroupwhentheymeetthefollowingconditions:
(1)theeconomiccharacteristicsandrisksoftheembeddedderivativearenotcloselyrelatedto
thoseofthehostcontract.
(2)aseparateinstrumentwiththesametermsastheembeddedderivativewouldmeetthe
definitionofaderivative.
(3)thehybridcontractsarenotmeasuredatfairvaluethroughprofitorloss.Fortheembeddedderivativeseparatedfromthehostcontracts,theGroupaccountsforthehostcontractsinthehybridcontractswithapplicableaccountingstandards.WhentheembeddedderivativeswhosefairvaluecannotbemeasuredreliablybytheGroupaccordingtothetermsandconditionsoftheembeddedderivatives,thefairvalueofsuchderivativesaremeasuredatthedifferencebetweenthefairvalueofthehybridcontractsandthefairvalueofthehostcontracts.Byadoptingtheabovemethod,iftheembeddedderivativecannotbemeasuredonastand-alonebasisatthetimewhenacquiredoratsubsequentbalancesheetdates,thehybridinstrumentisdesignatedasfinancialinstrumentsatfairvaluethroughprofitorlossasawhole.
10.6OffsettingfinancialassetsandfinancialliabilitiesWheretheGrouphasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
10.7CompoundinstrumentForconvertiblebondsissuedbytheGroupthatcontainbothliabilitiesandconversionoptionthatmayconverttheliabilitiestoitsownequityinstrument,uponinitialrecognition,thebondsaresplittedintoliabilitiesandconversionoptionwhichareseparatelyrecognized.Therein,theconversionoptionthatexchangesafixedamountofcashorotherfinancialassetsforafixedamountofequityinstrumentsisaccountedforasanequityinstrument.
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10.Financialinstruments-continued
10.7Compoundinstrument-continuedUponinitialrecognition,thefairvalueofliabilityportionisdeterminedbasedontheprevailingmarketpriceofthebondscontainingnoconversionoption.Theoverallissuepriceoftheconvertiblebondsnetofthefairvalueoftheliabilityportionisconsideredasthevalueoftheconversionoptionthatenablesthebondsholdertoconvertthebondstoequityinstruments,andisincludedinotherequityinstruments.Theliabilityportionoftheconvertiblebondsissubsequentlymeasuredatamortizedcostusingeffectiveinterestmethod;thevalueoftheconversionoptionclassifiedasequityinstrumentremaininequityinstrument.Theexpiryorconversionofconvertiblebondswillnotresultinlossorgain.Thetransactioncostsincurredforissuanceoftheconvertiblebondsareallocatedbetweentheliabilityportionandequityinstrumentportioninproportiontotheirrespectivefairvalue.Thetransactioncostrelatingtotheequityinstrumentportionisdirectlyincludedinequityinstrument;whilethetransactioncostrelatingtotheliabilityportionisincludedinthecarryingamountoftheliability,andamortizedoverthelifetimeoftheconvertiblebondsusingeffectiveinterestmethod.
10.8ReclassificationoffinancialinstrumentsWhentheGroupchangesthebusinessmodeltomanagethefinancialassets,thefinancialassetsaffectedwillbereclassifiedandnofinancialliabilitieswillbereclassified.ThefinancialassetsarereclassifiedbytheGroupandareaccountedforprospectivelysincethedateofreclassification(i.e.thefirstdateoftheinitialreportingperiodafterthebusinessmodelofwhichthefinancialassetsarereclassifiedbytheenterpriseischanged).Whereafinancialassetatamortisedcostisreclassifiedasafinancialassetsatfairvaluethroughprofitorloss("FVTPL")bytheGroup,suchfinancialassetismeasuredatfairvalueatthedateofreclassificationandthedifferencebetweentheoriginalcarryingamountandthefairvalueisrecognizedinprofitorlossfortheperiod.Whereafinancialassetatamortisedcostisreclassifiedasafinancialassetatfairvaluethroughothercomprehensiveincome("FVTOCI")bytheGroup,suchfinancialassetismeasuredatthefairvalueatthedateofreclassification,andthedifferencebetweentheoriginalamountandthefairvalueisrecognizedinothercomprehensiveincome.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
10.Financialinstruments-continued
10.8Reclassificationoffinancialinstruments-continuedWhereafinancialassetatFVTOCIisreclassifiedasafinancialassetatamortisedcostbytheGroup,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredoutandthefairvalueisadjustedasthefairvalueatthedateofreclassification.Theadjustedfairvalueisrecognizedasthenewcarryingamount,asifthefinancialassethadbeenmeasuredatamortisedcost.WhereafinancialassetatFVTOCIisreclassifiedasafinancialassetatFVTPLbytheGroup,suchfinancialassetcontinuestobeaccountedforatfairvalue.Atthesametime,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredtoprofitorlossfortheperiod.WhereafinancialassetatFVTPLisreclassifiedasafinancialassetatamortisedcostbytheGroup,thefairvalueatthedateofreclassificationisrecognizedasthenewaccountbalance.WhereafinancialassetatFVTPLisreclassifiedasafinancialassetatFVTOCIbytheGroup,suchfinancialassetcontinuestobemeasuredatfairvalue.WhereafinancialassetatFVTPLisreclassified,theeffectiveinterestrateisdeterminedonthebasisofthefairvalueofthefinancialassetatthedateofreclassification.
11.AccountsreceivableTheGroupmakesinternalcreditratingsoncustomersanddeterminesexpectedlossesrateofnotesreceivable,accountsreceivable,otherreceivablesandlong-termreceivables.Basisfordeterminingratingsandtheexpectedlossesratesareasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.Internalcreditrating
| 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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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
12.ReceivablesfinancingNotesreceivableclassifiedtohedginginstrumentsforthepurposeofhedging,shouldbelistedasreceivablesfinancingwithinoneyear(includingoneyear).Ifthetermaboveoneyear,itshouldbelistedasotherinvestmentonbonds.RelatedaccountingpoliciesrefertoNoteIV,10.
13.Inventories
13.1CategoriesofinventoriesInventoriesincluderawmaterials,merchandiseandothers.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpendituresincurredinbringingtheinventoriestotheirpresentlocationandcondition.
13.2ValuationmethodofinventoriesupondeliveryTheactualcostofinventoriesupondeliveryiscalculatedusingtheweightedaveragemethodandfirst-in-first-outmethod.
13.3Basisfordeterminingnetrealizablevalueofinventoriesandprovisionmethodsfor
declineinvalueofinventoriesAtthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Ifthecostofinventoriesishigherthanthenetrealizablevalue,aprovisionfordeclineinvalueofinventoriesismade.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Netrealizablevalueisdeterminedonthebasisofclearevidenceobtained,aftertakingintoconsiderationthepurposesofinventoriesbeingheldandeffectofpostbalancesheetevents.Provisionfordeclineinvalueofotherinventoriesismadebasedontheexcessofcostofinventoryoveritsnetrealizablevalueonanitem-by-itembasis.Aftertheprovisionfordeclineinvalueofinventoriesismade,ifthecircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistsothatthenetrealizablevalueofinventoriesishigherthantheircost,theoriginalprovisionfordeclineinvalueisreversedandthereversalisincludedinprofitorlossfortheperiod.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
13.Inventories-continued
13.4InventorycountsystemTheinventorycountmethodadoptsperpetualinventorysystem.
13.5Amortizationmethodsforlowcostandshort-livedconsumableitemsandpackaging
materialsPackagingmaterialsandlowcostandshort-livedconsumableitemsareamortizedusingtheimmediatewrite-offmethod.
14.Contractassets
14.1RecognitionandcriteriaofcontractassetsAcontractassetrepresentstheGroup'srighttoconsiderationinexchangeforgoodsorservicesthattheGrouphastransferredtoacustomer,andsuchrightdependsonfactorsotherthanthepassageoftime.TheGroup'sunconditionalright(onlythepassageoftimeisrequired)toconsiderationfromthecustomerisseparatelypresentedas"accountsreceivable".
14.2Determinationandaccountingtreatmentsofexpectedcreditlosses("ECL")forcontract
assetsRefertoNoteIV,10.2"Impairmentoffinancialinstruments"fordeterminationandaccountingtreatmentsofexpectedcreditlossesforcontractassets.
15.AssetsheldforsaleWhentheGroupwithdrewthebookvalueofcertainassetsordisposalgroupmainlythroughdisposalinsteadofcontinualapplication,theassetsshouldbeclassifiedasheld-for-saleassets.Assetsordisposalgroupclassifiedasheld-for-saleassetsshouldmeatfollowingconditions:(1)Thecurrentstatusisavailableforimmediatedistributionaccordingtosimilartransactionsofthiscategoryofassetsordisposalgroup;(2)Thetransactionislikelytooccur,i.e.theGrouphasmadeitsresolutionoverthedistributionarrangementsandacquiredpurchasecommitment.Alsothedistributionisgoingtobefulfilledwithinayear.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
15.Assetsheldforsale-continuedIftheholdingcompanylosescontrolofitssubsidiaryforreasonslikesubsidiarydisposal,inregardlessofwhethertheholdingcompanystillkeepspartofequityinvestment,oncetheproposedinvestmentdisposalmeetstherequirementsofbeingclassifiedasavailableforsaleassetsintheholdingcompany'sindividualstatement,allassetsandliabilitiesofthesubsidiaryshouldbeclassifiedasheld-for-saleinconsolidatedfinancialstatement.Thegroup'snon-currentassetsanddisposalgrouparemeasuredatthelowerofbookvalueandthenetvalueoffairvaluelesscoststosell.Oncethebookvalueishigherthanthenetvalueoffairvaluelesscoststosell,thebookvalueshouldbeadjustedtothenetvalueandtheexcessshouldberecognizedasimpairmentlossesandprovisionforheld-for-saleassetsimpairmentshouldbemade.Againandareverseinthepreviousprovisionforheld-for-saleassetsimpairmentcanberecognizedforanyincreaseinfairvaluelesscoststosellatsubsequentbalancesheetdates,totheextentthatitisnotinexcessofthecumulativeimpairmentlossthathasbeenrecognized.Assetimpairmentlossesrecognizedbeforesuchassetsareclassifiedasheldforsalewillnotbereversed.Non-currentheld-for-saleassetsarenotsubjecttodepreciationandamortization.Thecreditorinterestandotherexpensesofdisposalgroupclassifiedasheld-for-saleassetshouldstillberecognized.Oncetheassociateorjointventureequityinvestmentiscompletelyorpartlyclassifiedasheld-for-saleassets,theclassifiedpartoftheinvestmentisnotsubjecttoequitymethodmeasurement.Ifanassetoradisposalgrouphasbeenclassifiedasheldforsalebuttherecognitioncriteriafornon-currentassetsheldforsalearenolongermet,theGroupshallceasetoclassifytheassetordisposalgroupasheldforsale.Itshallbemeasuredatthelowerof(1)thecarryingamountbeforetheassetordisposalgroupwasclassifiedasheldforsale,adjustedforanydepreciation,amortisationorimpairmentthatwouldhavebeenrecognisedhadtheassetordisposalgroupnotbeenclassifiedasheldforsale;and(2)therecoverableamountatthedateofthedecisionnottosell.Forequityinvestmentsinassociatesorjointventuresthatareclassifiedasheldforsalebuttherecognitionfornon-currentassetsheldforsalearenolongermet,suchinvestmentsareaccountedforretrospectivelyusingtheequitymethodfromthedatewhentheyclassifiedasheldforsale.Thefinancialstatementsfortheheld-for-saleperiodareadjustedaccordingly.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
16.Long-termequityinvestments
16.1BasisfordeterminingjointcontrolandsignificantinfluenceoverinvesteeControlisarchivedwhentheGrouphasthepowerovertheinvesteeandhasrightstovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytouseitspowertoaffectitsreturns.Jointcontrolisthecontractuallyagreedsharingofcontroloveraneconomicactivity,andexistsonlywhenthestrategicfinancialandoperatingpolicydecisionsrelatingtotheactivityrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontroloverthosepolicies.Whendeterminingwhetheraninvestingenterpriseisabletoexercisecontrolorsignificantinfluenceoveraninvestee,theeffectofpotentialvotingrightsoftheinvestee(forexample,warrantsandconvertibledebts)heldbytheinvestingenterprisesorotherpartiesthatarecurrentlyexercisableorconvertibleshallbeconsidered.
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.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
16.Long-termequityinvestments-continued
16.2Determinationofinitialinvestmentcost-continuedForalong-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.
16.3Subsequentmeasurementandrecognitionofprofitorloss
16.3.1Long-termequityinvestmentsaccountedforusingthecostmethodLong-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodintheCompany'sseparatefinancialstatements.AsubsidiaryisaninvesteethatiscontrolledbytheGroup.Underthecostmethod,along-termequityinvestmentismeasuredatinitialinvestmentcost.Additionalorwithdrawinginvestmentwouldaffectthecostoflong-termequityinvestment.Investmentincomeisrecognizedintheperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestee.
16.3.2Long-termequityinvestmentsaccountedforusingtheequitymethodExceptassociateandjointventureinvestmentcompletelyorpartlyclassifiedasavailableforsale,andTheGroupaccountsforinvestmentinassociatesandjointventuresusingtheequitymethod.AnassociateisanentityoverwhichtheGrouphassignificantinfluenceandajointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthejointarrangement.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
16.Long-termequityinvestments-continued
16.3Subsequentmeasurementandrecognitionofprofitorloss-continued
16.3.2Long-termequityinvestmentsaccountedforusingtheequitymethod-continuedUndertheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,noadjustmentismadetotheinitialinvestmentcost.WheretheinitialinvestmentcostislessthantheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,thedifferenceisrecognizedinprofitorlossfortheperiod,andthecostofthelong-termequityinvestmentisadjustedaccordingly.Undertheequitymethod,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.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
16.Long-termequityinvestments-continued
16.4Disposaloflong-termequityinvestmentsOndisposalofalong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandreceivableandthecarryingamountisrecognizedinprofitorlossfortheperiod.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,iftheremaininginterestafterdisposalisstillaccountedforusingtheequitymethod,othercomprehensiveincomepreviouslyrecognizedforusingtheequitymethodisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;owners'equityrecognizedduetochangesinotherowners'equityoftheinvestee(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.Forlong-termequityinvestmentsaccountedforusingthecostmethod,iftheremaininginterestafterdisposalisstillaccountedforusingthecostmethod,othercomprehensiveincomepreviouslyrecognizedforusingtheequitymethodorinaccordancewiththestandardsfortherecognitionandmeasurementoffinancialinstrumentsbeforeobtainingthecontrolovertheinvestee,isaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;changesinotherowners'equityintheinvestee'snetassetsrecognizedundertheequitymethod(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.TheGrouplosescontroloninvesteeduetodisposalofpartofshares,duringpreparingseparatefinancialstatement,remainingsharesafterdisposalcanmakejointcontrolorsignificantinfluenceoninvestee,areaccountedunderequitymethod,andadjustedastheyareaccountedunderequitymethodsincetheacquisitiondate;Ifremainingsharesafterdisposalcannotmakejointcontrolorsignificantinfluenceoninvestee,theyareaccountedaccordingtorecognitionandmeasurementoffinancialinstruments,andthedifferencebetweenfairvalueondateoflosingcontrolandbookvalueisrecognizedinprofitorlossofcurrentperiod.BeforetheGroupobtainedcontrolsovertheinvestee,othercomprehensiveincomerecognizedduetoequitymethodorrecognitionandmeasurementoffinancialinstruments,isaccountedonthebasisofrelatedassetsandliabilities,andrecognizedinprofitorloss;changesofowners'equityexceptfornetprofitorloss,othercomprehensiveincomeandprofitdistributionarerecognizedinprofitorlossofcurrentperiod.Remainingsharesafterdisposalareaccountedunderequitymethod,othercomprehensiveincomeandotherowners'equityarecarriedforwardasproportion;remainingsharesafterdisposalareaccountedduetorecognitionandmeasurementoffinancialinstrumentsothercomprehensiveincomeandotherowners'equityareallcarriedforward
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
16.Long-termequityinvestments-continued
16.4Disposaloflong-termequityinvestments-continuedFortheGrouplosesjointcontrolorsignificantinfluenceoninvesteeafterpartdisposalofshares,remainingsharesafterdisposalareaccountedaccordingtorecognitionandmeasurementoffinancialinstruments,thedifferencebetweenfairvalueatthedateoflosingjointcontrolorsignificantinfluenceandbookvalueisrecognizedinprofitorlossofcurrentperiod.Othercomprehensiveincomerecognizedunderequitymethod,isaccountedonthebasisofrelatedassetsorliabilitieswhenstopusingequitymethod,changeofowners'equityexceptfornetprofitorloss,othercomprehensiveincomeandprofitdistributionisrecognizedininvestmentincomeofcurrentperiod.TheGrouplosescontrolonsubsidiariesthroughstepbysteptransactionsofdisposal,iftransactionsare"packagedeal",alltransactionsareseemedasonetransactionofdisposalinvestmentonsubsidiaries,differencebetweenamountofdisposalandbookvalueoflong-termequityinvestment,isrecognizedasothercomprehensiveincome,andrecognizedinincomefortheperiodwhenlosingcontrol.
17.InvestmentpropertiesInvestmentpropertyispropertyheldbytheGrouptoearnrentalsorforcapitalappreciationorboth.Itincludesalanduserightthatisleasedout;alanduserightheldfortransferuponcapitalappreciation;andabuildingthatisleasedout.Aninvestmentpropertyismeasuredinitiallyatcost.SubsequentexpendituresincurredforsuchinvestmentpropertyareincludedinthecostoftheinvestmentpropertyifitisprobablethateconomicbenefitsassociatedwithaninvestmentpropertywillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably,othersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.TheGroupusesthecostmodelforsubsequentmeasurementofinvestmentproperty,andadoptsadepreciationoramortizationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduserights.Aninvestmentpropertyisderecognizedupondisposalorwhentheinvestmentpropertyispermanentlywithdrewfromuseandnofutureeconomicbenefitsareexpectedfromthedisposal.Whenaninvestmentpropertyissold,transferred,retiredordamaged,theGrouprecognizestheamountofanyproceedsondisposalnetofthecarryingamountandrelatedtaxesinprofitorlossfortheperiod.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
18.FixedassetsanddepreciationFixedassetsaretangibleassetsthatareheldforuseintheproductionorsupplyofgoodsorservices,forrentaltoothers,orforadministrativepurposes,andhaveusefullivesofmorethanoneaccountingyear.AfixedassetisrecognizedonlywhenitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthecostoftheassetcanbemeasuredreliably.Fixedassetsareinitiallymeasuredatcost.Uponbeingrestructuredintoastockcompany,thefixedassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.SubsequentexpendituresincurredforthefixedassetareincludedinthecostofthefixedassetandifitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably.Meanwhilethecarryingamountofthereplacedpartisderecognized.Othersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.Afixedassetisdepreciatedoveritsusefullifeusingthestraight-linemethodstartingfromthemonthsubsequenttotheoneinwhichitisreadyforintendeduse.Theusefullife,estimatednetresidualvaluerateandannualdepreciationrateofeachcategoryoffixedassetsareasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.
Category
| 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.Ifafixedassetisupondisposalornofutureeconomicbenefitsareexpectedtobegeneratedfromitsuseordisposal,thefixedassetisderecognized.Whenafixedassetissold,transferred,retiredordamaged,theamountofanyproceedsondisposaloftheassetnetofthecarryingamountandrelatedtaxesisrecognizedinprofitorlossfortheperiod.TheGroupreviewstheusefullifeandestimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastonceateachfinancialyear-end,andaccountforanychangeasachangeinanaccountingestimate.
19.ConstructioninprogressConstructioninprogressismeasuredatitsactualcosts.Theactualcostsincludevariousconstructionexpendituresduringtheconstructionperiod,borrowingcostscapitalizedbeforeitisreadyforintendeduseandotherrelevantcosts.Constructioninprogressisnotdepreciated.Constructioninprogressistransferredtoafixedassetwhenitisreadyforintendeduse.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
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
21.1IntangibleassetsIntangibleassetsincludelanduserights,terminaloperatingrightsandothers.Anintangibleassetismeasuredinitiallyatcost.Uponbeingrestructuredintoastockcompany,theintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Exceptforportoperationrights,whenanintangibleassetwithafiniteusefullifeisavailableforuse,itsoriginalcostisamortizedoveritsestimatedusefullife.Theterminaloperatingrightsundertheoutputmethodareamortizedthroughperiodsaccordingtotheratiooftheestimatedminimumguaranteedthroughputtotheestimatedminimumguaranteedtotalthroughputduringtheoperationperiod.Whentheestimatedminimumguaranteedthroughputcannotbemeasuredreliably,thestraight-linemethodwillbeusedforamortization.Anintangibleassetwithuncertainusefullifewillnotbeamortized.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
21.Intangibleassets-continued
21.1Intangibleassets-continuedTheamortizationmethod,usefullifeandestimatednetresidualvalueofvariousintangibleassetsareasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.Category
| Category | AmortizationMethod | UsefulLife(year) | Residualvalue(%) |
| Landuserights | Straight-linemethod | 40-50 | - |
| Terminaloperatingright | Output/Straight-linemethod | 30-50 | - |
| Others | Straight-linemethod | 5-50 | - |
Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortizationmethodattheendoftheyear,andmakesadjustmentswhennecessary.
21.2ResearchanddevelopmentexpenditureExpenditureduringtheresearchphaseisrecognisedasanexpenseintheperiodinwhichitisincurred.Expenditureduringthedevelopmentphasethatmeetsallofthefollowingconditionsatthesametimeisrecognisedasintangibleasset.Expenditureduringdevelopmentphasethatdoesnotmeetthefollowingconditionsisrecognisedinprofitorlossfortheperiod.
(1)itistechnicallyfeasibletocompletetheintangibleassetsothatitwillbeavailableforuse
orsale.
(2)theGrouphastheintentiontocompletetheintangibleassetanduseorsellit.
(3)theGroupcandemonstratethewaysinwhichtheintangibleassetwillgenerateeconomic
benefits,includingtheevidenceoftheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset.
(4)theavailabilityofadequatetechnical,financialandotherresourcestocompletethe
developmentandtheabilitytouseorselltheintangibleasset.
(5)theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbe
reliablymeasured.Iftheexpenditurescannotbedistinguishedbetweentheresearchphaseanddevelopmentphase,theGrouprecognisesalloftheminprofitorlossfortheperiod.Thecostsofintangibleassetsgeneratedbytheinternalresearchonlyincludethetotalexpenditureincurredfortheperiodfromthetimepointofcapitalizationtotheintangibleassetsarereadyforintendeduse.Fortheidenticalintangibleasset,theexpendituresrecordedasexpensesbeforetheyqualifyforcapitalizationduringthedevelopmentprocessarenotadjusted.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
22.Impairmentofnon-financialassetsotherthangoodwillTheGroupassessesatthebalancesheetdatewhetherthereisanyindicationthatthelong-termequityinvestments,investmentpropertiesmeasuredatcostmethod,constructioninprogress,fixedassets,right-of-useassets,intangibleassetswithafiniteusefullifeandassetsrelatedtocontractcostsmaybeimpaired.Ifthereisanyindicationthatsuchassetsmaybeimpaired,recoverableamountsareestimatedforsuchassets.Intangibleassetswithindefiniteusefullifeandintangibleassetsnotyetavailableforusearetestedforimpairmentannually,irrespectiveofwhetherthereisanyindicationthattheassetsmaybeimpaired.Recoverableamountisestimatedonindividualbasis.Ifitisnotpracticaltoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheassetgrouptowhichtheassetbelongswillbeestimated.Therecoverableamountofanassetisthehigherofitsfairvaluelesscostsofdisposalandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.Iftherecoverableamountofanassetoranassetgroupislessthanitscarryingamount,thedeficitisaccountedforasanimpairmentlossandisrecognizedinprofitorloss.Oncetheimpairmentlossofabove-mentionedassetisrecognized,itshallnotbereversedinanysubsequentperiod.Indeterminingtheimpairmentlossesofassetsrelatedtocontractcosts,theGroupfirstdeterminestheimpairmentlossesofotherassetsrelatedtocontractsrecognizedinaccordancewithotherrelevantASBEs;then,forassetsrelatedtocontractcosts,ifthecarryingamountoftheassetsishigherthanthedifferencebetween:(1)theremainingconsiderationthattheGroupexpectstoobtainforthetransferofthegoodsorservicesrelatedtotheasset;and(2)theestimatedcoststobeincurredforthetransferoftherelatedgoodsorservices,anyexcessisprovidedforimpairmentandrecognizedasimpairmentlossofassets.Exceptforimpairmentlossofassetsrelatedtocontractcosts,theaboveimpairmentlossisrecognized,itcannotbereversedinthesubsequentaccountingperiods.Aftertheprovisionforimpairmentofassetsrelatedtocontractcostsismade,ifthefactorsofimpairmentinpreviousperiodschangesothatthedifferencebetweentheabovetwoishigherthanthecarryingamountoftheasset,theoriginalprovisionforimpairmentoftheassetisreversedandrecognizedinprofitorlossfortheperiod,providedthatthecarryingamountoftheassetafterthereversaldoesnotexceedthecarryingamountoftheassetatthedateofreversalassumingnoprovisionforimpairmentwasmade.
23.Long-termprepaidexpensesLong-termprepaidexpensesrepresentexpensesincurredthatshouldbeborneandamortizedoverthecurrentandsubsequentperiods(togetherofmorethanoneyear).Long-termprepaidexpensesareamortizedusingthestraight-linemethodovertheexpectedperiodsinwhichbenefitsarederived.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
24.ContractliabilitiesAcontractliabilityrepresentstheGroup'sobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsideration(oranamountofconsiderationisdue)fromthecustomer.Acontractassetandacontractliabilityrelatingtothesamecontractareaccountedforandpresentedonanetbasis.
25.EmployeebenefitsEmployeebenefitsareallformsofconsiderationsgivenbytheGroupinexchangeforservicesrenderedbyemployeesorfortheterminationofemployment.Employeebenefitsincludeshort-termbenefits,post-employmentbenefits,terminationbenefitsandotherlong-termemployeebenefits.
25.1Short-termemployeebenefitsShort-termbenefitsrefertotheemployeebenefitsthattheGroupisrequiredtomakethefullpaymentstowithinthe12monthsaftertheannualreportingperiodduringwhichrelevantservicesareprovidedbytheemployeesisended,exceptthepost-employmentbenefitsandterminationbenefits.Specifically,theshort-termbenefitsinclude:employeesalaries,bonuses,allowancesandsubsidies,employeebenefits,socialinsurancecontributionssuchasthemedicalinsurance,theworkinjuryinsuranceandthematernityinsurance,housingfunds,tradeunionfundsandemployeeeducationfunds,short-termpaidabsence,short-termprofitsharingplan,non-monetarywelfareandothershort-termbenefits.Short-termemployeebenefitspayablearerecognizedasliabilities,withacorrespondingchargetotheprofitorlossfortheperiodorinthecostsofrelevantassetsintheaccountingperiodinwhichemployeesprovideservicestotheGroup.StaffwelfareexpensesincurredbytheGrouparerecognizedinprofitorlossfortheperiodorthecostsofrelevantassetsbasedontheactuallyoccurredamountswhenitactuallyoccurred.Non-monetarystaffwelfareexpensesaremeasuredatfairvalue.PaymentmadebytheGroupofsocialsecuritycontributionsforemployeessuchaspremiumsorcontributionsonmedicalinsurance,workinjuryinsuranceandmaternityinsurance,etc.andpaymentsofhousingfunds,aswellasunionrunningcostsandemployeeeducationcostsprovidedinaccordancewithrelevantrequirements,arecalculatedaccordingtoprescribedbasesandpercentagesindeterminingtheamountofemployeebenefitsandrecognizedasrelevantliabilities,withacorrespondingchargetotheprofitorlossfortheperiodorthecostsofrelevantassetsintheaccountingperiodinwhichemployeesprovideservices.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
25.Employeebenefits-continued
25.2Post-employmentbenefitsPost-employmentbenefitsrefertotherewardsandbenefitsofvariousformsprovidedbytheGroupaftertheemployeeshavebeenretiredorterminatedthelaborrelationshipwiththeenterprisesfortheservicesrenderedbytheemployees,excepttheshort-termsalariesandtheterminationbenefits.Thepost-employmentbenefitsconsistofthepensioninsurance,theannuity,theunemploymentinsuranceandotherpost-employmentbenefits.Post-employmentbenefitplansareclassifiedbytheGroupintodefinedcontributionplansanddefinedbenefitplans.Thepost-employmentbenefitplanreferstoagreementstheGroupenteredintowiththeemployeesonthepost-employmentbenefitsortheregulationsormeasuresestablishedbytheGroupforprovisionsofthepost-employeebenefits,amongwhichthedefinedcontributionplanreferstothepost-employmentbenefitsplanunderwhichtheGroupshallnolongerundertakeanyobligationsofpaymentsafterpayingfixedexpensestoindependentfunds;thedefinedbenefitplansrefertothepost-employmentbenefitplansotherthanthedefinedcontributionplans.DuringtheaccountingperiodwhenemployeesrenderservicestotheGroup,theamountspayablecalculatedbasedonthedefinedcontributionplanarerecognizedasliabilitiesandincludedtotheprofitorlossfortheperiodorrelevantcostsofassets.Fordefinedbenefitplans,theGroupcalculatesdefinedbenefitplanobligationsusingprojectedunitcreditmethodandtheservicecostresultingfromemployeeserviceinthecurrentperiodisrecordedinprofitorlossorthecostofrelatedassets.Definedbenefitcostsarecategorizedasfollows:
?Servicecost(includingcurrentservicecost,pastservicecost,aswellasgainsandlosseson
settlements);?Netinterestofnetliabilitiesorassetsofdefinedbenefitplan(includinginterestincomeof
plannedassets,interestexpensesofdefinedbenefitplanliabilitiesandeffectofassetceiling);
and?Changesarisingfromremeasurementofnetliabilitiesornetassetsofdefinedbenefitplans.Servicecostsandnetinterestofnetliabilitiesandnetassetsofdefinedbenefitplansarerecognizedinprofitorlossofcurrentperiodorcostsofrelatedassets.Remeasurementofthenetdefinedbenefitliability(asset)(includingactuarialgainsandlosses,thereturnonplanassets,excludingamountsincludedinnetinterestonthenetdefinedbenefitliability(asset),andanychangeintheeffectoftheassetceiling,excludingamountsincludedinnetinterestonthenetdefinedbenefitliability(asset))arerecognizedinothercomprehensiveincome.Thedeficitorsurplusresultingfromthepresentvalueofthedefinedbenefitplanobligationlessthefairvalueofthedefinedbenefitplanassetsisrecognizedasanetdefinedbenefitplanliabilityornetasset.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
25.Employeebenefits-continued
25.3TerminationbenefitsTerminationbenefitsrefertothecompensationstheGrouppaytotheemployeesforterminatingtheemploymentrelationshipwithemployeesbeforetheexpiryoftheemploymentcontractsorencouragingemployeestoacceptvoluntaryredundancy.WhentheGroupprovidesterminationbenefitstoemployees,employeebenefitliabilitiesarerecognizedforterminationbenefits,withacorrespondingchargetotheprofitorlossfortheperiodattheearlierof:(1)whentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseoftheterminationplanoracurtailmentproposal;and(2)whentheGrouprecognizescostsorexpensesrelatedtorestructuringthatinvolvesthepaymentofterminationbenefits.
25.4Otherlong-termemployeebenefitsOtherlong-termemployeebenefitsrefertoallemployeebenefitsexceptforshort-termbenefits,post-employmentbenefits,andterminationbenefits.Otherlong-termemployeebenefitsthatqualifyasdefinedcontributionplansaretreatedinaccordancewiththerelevantprovisionsofthedefinedcontributionplansmentionedabove,exceptthatthenetliabilityornetassetforotherlong-termemployeebenefitsisrecognizedandmeasuredinaccordancewiththerelevantprovisionsofthedefinedbenefitplans.Attheendofthereportingperiod,employeecompensationcostsarisingfromotherlong-termemployeebenefitsarerecognizedasthreecomponents:servicecost,netinterestonthenetliabilityornetassetforotherlong-termemployeebenefits,andchangesresultingfromtheremeasurementofthenetliabilityornetassetforotherlong-termemployeebenefits.Thetotalnetamountoftheseitemsisincludedinprofitorlossfortheperiodorinthecostoftherelatedassets.TheGroupprovidesinternalretirementbenefitstoemployeesacceptingtheinternalretirementarrangements.Internalretirementbenefitsrefertothepaymentsofsalariesandsocialsecuritycontributionsforemployeeswhoreachattheretirementageregulatedbythecountryandareapprovedtoquitthejobvoluntarily.Forinternalretirementbenefits,theinternalretirementbenefitstheGroupisexpectedtopayduringtheperiodfromthedatewhenemployeesstopprovidingservicestothedateofnormalretirementarerecognizedasliabilitiesatthepresentvalueandincludedtotheprofitorlossfortheperiodwhenrelevantrecognitionrequirementsoftheinternalretirementbenefitsaremet.
26.ProvisionsProvisionsarerecognizedwhentheGrouphasapresentobligationrelatedwithcontingencies,itisprobablethattheGroupwillberequiredtosettlethatobligationcausinganoutflowofeconomicbenefits,andareliableestimatecanbemadeoftheamountoftheobligation.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
26.Provisions-continuedTheamountrecognizedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatbalancesheetdate,takingintoaccounttherisks,uncertaintiesandtimevalueofmoneysurroundingtheobligation.Whenaprovisionismeasuredusingthecashflowsestimatedtosettlethepresentobligation,itscarryingamountisthepresentvalueofthosecashflowswheretheeffectofthetimevalueofmoneyismaterial.Whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,areceivableisrecognizedasanassetifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivableshouldnotexceedthecarryingamountofprovisions.
27.RevenuerecognitionTheGroup'srevenueismainlyfromthefollowingbusinesstypes:
(1)Portservice.
(2)Bondedlogisticsservice.
(3)Otherbusinesssuchaspropertydevelopmentandinvestment.TheGrouprecognizesrevenuebasedonthetransactionpriceallocatedtosuchperformanceobligationwhenaperformanceobligationissatisfied,i.e.when"control"ofthegoodsorservicesunderlyingtheparticularperformanceobligationistransferredtothecustomer.AperformanceobligationrepresentsthecommitmentthatagoodandservicethatisdistinctshallbetransferredbytheGrouptothecustomer.TransactionpricereferstotheconsiderationthattheGroupisexpectedtochargeduetothetransferofgoodsorservicestothecustomer,butitdoesnotincludepaymentsreceivedonbehalfofthirdpartiesandamountsthattheGroupexpectstoreturntothecustomer.ItisaperformanceobligationsatisfiedduringaperiodoftimeifoneofthefollowingconditionsismetinaccordancewithNewrevenuestandards:(i)thecustomerobtainsandconsumeseconomicbenefitsatthesametimeoftheCompany'sperformance;(ii)thecustomerisabletocontrolgoodsinprogressduringtheCompany'sperformance;(iii)goodsorservicesgeneratedduringtheCompany'sperformancehaveirreplaceableutilization,andtheCompanyisentitledtocollectamountsofcumulativeperformancepartwhichhavebeendoneuptonow.Otherwise,theCompanywillrecognizerevenueatthepointintimewhenthecustomerobtainscontroloverrelativegoodsorservices.TheGroupadoptsoutputmethod,i.e.thevalueofgoodsorservicestransferredtocustomerstodeterminetheappropriateprogressofperformance.Wheretheprogresscannotbedeterminedreasonably,therevenueisrecognizedbasedontheamountofcostthatisexpectedtobecompensatedbasedonthecostalreadyincurred,untiltheprogressofperformanceisreasonablydetermined.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
27.Revenuerecognition-continuedContractassetreferstotheCompany'srighttoconsiderationinexchangeforgoodsorservicesthattheCompanyhastransferredtoacustomerwhenthatrightisconditionedonsomethingotherthanthepassageoftime.AccountingpoliciesrelatingtocontractassetarespecifiedinNoteIV,10.TheCompany'sunconditional(i.e.,dependingonthepassageoftimeonly)righttoreceiveconsiderationfromthecustomerisseparatelypresentedasreceivables.ContractliabilitiesrefertotheCompany'sobligationtotransfergoodsorservicestoacustomerforwhichtheCompanyhasreceivedconsiderationfromthecustomer.Contractassetsandcontractliabilitiesunderthesamecontractarepresentedatnetamount.Ifthecontractincludestwoormoreperformanceobligations,atcontractinception,theGroupallocatesthetransactionpricetosingleperformanceobligationaccordingtorelativeproportionofthestand-alonesellingpricesofthegoodsorservicespromisedbysingleperformanceobligation.However,wherethereisconclusiveevidencethatthecontractdiscountorvariableconsiderationisonlyrelatedtooneormore(notall)performanceobligationsinthecontract,theGroupshallallocatethecontractdiscountorvariableconsiderationtorelevantoneormoreperformanceobligations.Thestand-alonesellingpriceisthepriceatwhichtheGroupwouldsellapromisedgoodorserviceseparatelytoacustomer.Ifastand-alonesellingpriceisnotdirectlyobservable,theGroupshallconsiderallinformationthatisreasonablyavailabletotheGroupandmaximizetheuseofobservableinputsandapplyestimatesmethodsconsistentlyinsimilarcircumstances.Forcontractsthatcontainvariableconsideration(e.g.salesdiscount),theGroupestimatestheamountofconsiderationusingeithertheexpectedvalueorthemostlikelyamount.Thetransactionpricethatincludesvariableconsiderationisonlytotheextentthatitishighlyprobablethatsuchaninclusionwillnotresultinasignificantrevenuereversalinthefuturewhentheuncertaintyissubsequentlyresolved.Attheendofeachreportingperiod,theGroupreevaluatesthevariableconsiderationincludedinthetransactionprice.Fornon-cashconsiderationfromcustomer,theGrouprecognizesthetransactionpricebasedonthefairvalueofthenon-cashconsideration.Wherethefairvalueofthenon-cashconsiderationcannotbereasonablyestimated,theGrouprecognizesthetransactionpriceindirectlybyreferencetothestand-alonepriceofthepromisedgoodsorservicespromisedtransferredtothecustomer.Ifthecontractincludessignificantfinancingcomponent,theGroupdeterminesthetransactionpricebasedontheamountpayableundertheassumptionthatthecustomerpaysthatamountpayableincashwhen"control"ofthegoodsorservicesisobtainedbythecustomer.Thedifferencebetweenthetransactionpriceandthecontractconsiderationshallbeamortizedwithinthecontractperiodusingeffectiveinterestrate.IftheGroupexpects,atcontractinception,thattheperiodbetweenwhentheGrouptransfersapromisedgoodorservicetoacustomerandwhenthecustomerpaysforthatgoodorservicewillbeoneyearorless,theGroupneedsnottoconsiderthesignificantfinancingcomponent.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
27.Revenuerecognition-continuedTheGroupdetermineswhetheritisaprincipaloranagentatthetimeofthetransactionbasedonwhetheritownsthe"control"ofthegoodsorservicesbeforethetransferofsuchgoodsorservicestothecustomer.TheGroupisaprincipalifitcontrolsthespecifiedgoodorservicebeforethatgoodorserviceistransferredtoacustomer,andtherevenueshallberecognizedbasedonthetotalconsiderationreceivedorreceivable;otherwise,theGroupisanagent,andtherevenueshallberecognizedbasedontheamountofcommissionorhandlingfeethatisexpectedtobecharged,andsuchamountisdeterminedbasedonthenetamountofthetotalconsiderationreceivedorreceivableafterdeductingthepricespayabletootherrelatedpartiesoraccordingtotheestablishedcommissionamountorproportion.Wherepaymentisreceivedinadvance,theadvancepaymentreceivedshallberecordedasaliabilityandrecognizedasrevenuewhentherelevantperformanceobligationissatisfied.Theaboveamountwillberecognizedasrevenueproportionatelyinaccordancewiththemodelofcontractualrightsexercisedbythecustomerif(1)theGroup'sadvancepaymentdoesnotneedtobereturned,(2)thecustomermaywaiveallorpartofitscontractualrights,and(3)theGroupexpectstobeentitledtotheamountrelatedtothecontractualrightswaivedbythecustomer.Otherwise,thebalanceoftheliabilitiesisrecognizedasrevenuebytheGrouponlywhenthepossibilityofthecustomerrequestingthesatisfactionoftheremainingperformanceobligationsisextremelyremote.
28.Contractcosts
28.1CostsofobtainingacontractIftheincrementalcosts(coststhatwillnotoccurifnocontractobtained)incurredforobtainingthecontractareexpectedtoberecovered,theGrouprecognizesitasanassetamortizedonabasisthatisconsistentwiththetransfertothecustomerofthegoodsorservicestowhichtheassetrelatesandrecognizedinprofitorlossfortheperiod.Iftheamortizationperiodoftheassetdoesnotexceedoneyear,itisrecognizedinprofitorlossfortheperiodinwhichitoccurs.OtherexpensesincurredbytheGroupforobtainingthecontractarerecognizedinprofitorlossfortheperiodinwhichitoccurs,exceptasexpresslybornebythecustomer.
28.2CoststofulfilacontractIfthecostsincurredinfulfillingacontractarenotwithinthescopeofotherstandardotherthantherevenuestandard,theGroupshallrecognizedanassetfromthecostsincurredtofulfilacontractonlyifthosecostsmeetallofthefollowingcriteria:(1)thecostsrelatedirectlytoacontractortoananticipatedcontractthattheGroupcanspecificallyidentify;(2)thecostsgenerateorenhanceresourcesoftheentitythatwillbeusedinsatisfyingperformanceobligationsinthefuture;and(3)thecostsareexpectedtoberecovered.Theassetmentionedaboveshallbeamortizedonabasisthatisconsistentwiththetransfertothecustomerofthegoodsorservicestowhichtheassetrelatesandrecognizedinprofitorlossfortheperiod.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
29.TypesandaccountingtreatmentsofgovernmentgrantsGovernmentgrantsaretransferofmonetaryassetsornon-monetaryassetsfromthegovernmenttotheGroupatnoconsideration.AgovernmentgrantisrecognizedonlywhentheGroupcancomplywiththeconditionsattachedtothegrantandtheGroupwillreceivethegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofanon-monetaryasset,itismeasuredatfairvalue.Ifthefairvaluecannotbereliablydetermined,itismeasuredatanominalamount.Agovernmentgrantmeasuredatanominalamountisrecognizedimmediatelyinprofitorlossfortheperiod.Agovernmentgrantrelatedtoanassetisrecognizedasdeferredincome,andevenlyamortizedtoprofitorlossovertheusefullifeoftherelatedasset.Agovernmentgrantmeasuredatanominalamountisrecognizedimmediatelyinprofitorlossinthecurrentperiod.Wheretherelevantassetissold,transferred,scrappedordamagedpriortotheendofitsusefullife,therelatedundistributeddeferredincomeistransferredtotheprofitorlossofthedisposalperiod.Foragovernmentgrantrelatedtoincome,ifthegrantisacompensationforrelatedexpensesorlossestobeincurredinsubsequentperiods,thegrantisrecognizedasdeferredincomeandrecognizedinprofitorlossovertheperiodsinwhichtherelatedcostsorlossesarerecognized;Ifthegrantisacompensationforrelatedexpensesorlossesalreadyincurred,thegrantisrecognizedimmediatelyinprofitorloss.Forgovernmentgrantsbothrelatedtoassetandincome,differentpartsshouldbedistinguishedforaccountingtreatment;ifitisdifficulttodistinguish,itasawholeshouldbeclassifiedasgovernmentgrantsrelatedtoincome.AgovernmentgrantrelatedtotheGroup'sdailyactivitiesisrecognizedinotherincomebasedonthenatureofeconomicactivities;agovernmentgrantisnotrelatedtotheGroup'sdailyactivitiesisrecognizedinnon-operatingincome.
30.IncometaxTheincometaxexpensesincludecurrentincometaxanddeferredincometax.
30.1CurrentincometaxAtthebalancesheetdate,currentincometaxliabilities(orassets)forthecurrentandpriorperiodsaremeasuredattheamountexpectedtobepaid(orrecovered)accordingtotherequirementsoftaxlaws.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
30.Deferredtaxassets/deferredtaxliabilities-continued
30.2DeferredtaxassetsanddeferredtaxliabilitiesFortemporarydifferencesbetweenthecarryingamountsofcertainassetsorliabilitiesandtheirtaxbase,orbetweenthenilcarryingamountofthoseitemsthatarenotrecognizedasassetsorliabilitiesandtheirtaxbasethatcanbedeterminedaccordingtotaxlaws,deferredtaxassetsandliabilitiesarerecognizedusingthebalancesheetliabilitymethod.Deferredtaxliabilitiesaregenerallyrecognizedforalltaxabletemporarydifferences.Deferredtaxassetsfordeductibletemporarydifferencesarerecognizedtotheextentthatitisprobablethattaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized.However,fortemporarydifferencesassociatedwiththeinitialrecognitionofgoodwillandtheinitialrecognitionofanassetorliabilityarisingfromatransaction,whichisnotabusinesscombinationthataffectsneithertheaccountingprofitnortaxableprofits(ordeductiblelosses)atthetimeoftransaction,nodeferredtaxassetorliabilityisrecognized.Fordeductiblelossesandtaxcreditsthatcanbecarriedforward,deferredtaxassetsarerecognizedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductiblelossesandtaxcreditscanbeutilized.Deferredtaxliabilitiesarerecognizedfortaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandassociates,andinterestsinjointventures,exceptwheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifferenceanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.Deferredtaxassetsarisingfromdeductibletemporarydifferencesassociatedwithsuchinvestmentsandinterestsareonlyrecognizedtotheextentthatitisprobablethattherewillbetaxableprofitsagainstwhichtoutilizethebenefitsofthetemporarydifferencesandtheyareexpectedtoreverseintheforeseeablefuture.Atthebalancesheetdate,deferredtaxassetsandliabilitiesaremeasuredatthetaxratesapplicableintheperiodinwhichtheassetisrealizedortheliabilityissettledaccordingtotaxlaws.Currentanddeferredtaxexpensesorincomearerecognizedinprofitorlossfortheperiod,exceptwhentheyarisefromtransactionsoreventsthataredirectlyrecognizedinothercomprehensiveincomeorinequity,inwhichcasetheyarerecognizedinothercomprehensiveincomeorinequity,andwhentheyarisefrombusinesscombinations,inwhichcasetheyadjustthecarryingamountofgoodwill.Atthebalancesheetdate,thecarryingamountofdeferredtaxassetsisreviewedandreducedifitisnolongerprobablethatsufficienttaxableprofitswillbeavailableinthefuturetoallowthebenefitofdeferredtaxassetstobeutilized.Anysuchreductioninamountisreversedwhenitbecomesprobablethatsufficienttaxableprofitswillbeavailable.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
30.Deferredtaxassets/deferredtaxliabilities-continued
30.3IncometaxoffsettingWhentheGrouphasalegalrighttosettleonanetbasisandintendseithertosettleonanetbasisortorealizetheassetsandsettletheliabilitiessimultaneously,currenttaxassetsandcurrenttaxliabilitiesareoffsetandpresentedonanetbasis.WhentheGrouphasalegalrighttosettlecurrenttaxassetsandliabilitiesonanetbasis,anddeferredtaxassetsanddeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxassetsandliabilitiesonanetbasisortorealizetheassetsandliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxassetsorliabilitiesareexpectedtobereversed,deferredtaxassetsanddeferredtaxliabilitiesareoffsetandpresentedonanetbasis.
31.LeasesLeaseisacontractthatconveystherighttouseanassetforaperiodoftimeinexchangeforconsideration.Forcontractsthataresignedormodifiedafterthedateofinitialapplication,atinception/modificationofthecontracts,theGroupassesseswhetherthecontractis,orcontains,alease.Unlessthetermsandconditionsofthecontractarechanged,theGroupdoesnotreassesswhetheracontractis,orcontains,alease.
31.1TheGroupasLessee
31.1.1SeparatingcomponentsofaleaseIfacontractcontainsaleasecomponentandoneormorenon-leasecomponents,theGroupallocatestheconsiderationinthecontracttoeachleasecomponentonthebasisoftherelativestand-alonepriceoftheleasecomponentsandtheaggregatestand-alonepriceofthenon-leasecomponents.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
31.Leases-continued
31.1TheGroupasLessee-continued
31.1.2Right-of-useassetsExceptforshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,atthecommencementdateofthelease,theGrouprecognizesaright-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.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
31.Leases-continued
31.1TheGroupasLessee-continued
31.1.3Leaseliabilities-continuedTheleasepaymentscomprisethefollowingpaymentsbytheGroupfortherighttousetheunderlyingassetduringtheleaseterm:
?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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(IV)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,thevalueoftheunderlyingassetislessthanRMB50,000whenitisnew.Forshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,theGrouprecognisestheleasepaymentsassociatedwiththoseleasesasanexpenseorcostofrelevantassetonastraight-linebasisovertheleaseterm.
31.1.5LeasemodificationsAleasemodificationshouldbeaccountedforasaseparateleaseifbothofthefollowingapply:
?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets.?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alone
pricefortheincreaseinscopeandanyappropriateadjustmentstothatstand-alonepriceaccordingtothecircumstancesoftheparticularcontract.Foraleasemedicationthatisnotaccountedforasaseparatelease,attheeffectivedateoftheleasemodification,theGroupshouldallocatetheconsiderationinthemodifiedcontract,determinetheleasetermofthemodifiedleaseandremeasuretheleaseliabilitybydiscountingtherevisedpaymentsusingareviseddiscountrate.Forleasemodificationsthatdecreasethescopeoftheleaseornarrowthetermofthelease,theGroupshoulddecreasethecarryingamountoftheright-of-useassetwithanygainorlossrelatingtothepartialorfullterminationoftheleaseshouldberecognizedinprofitorloss.Forremeasurementofleaseliabilitiesfromallotherleasemodifications,acorrespondingadjustmentismadetothecarryingamountoftheright-of-useasset.
31.2TheGroupasLessor
31.2.1SeparatingcomponentsofaleaseWherethecontractcontainsboththeleaseandnon-leaseparts,theGroupshallapportionthecontractconsiderationinaccordancewiththeprovisionsoftherevenuestandardontheapportionmentofthetransactionprice,basedontheseparatepricesoftheleasepartandthenon-leasepart.
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(IV)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,lessanylease
incentives.?variableleasepaymentsthatdependonanindexorarate.?theexercisepriceofapurchaseoption,providedthatitisreasonablydeterminedthatthe
lesseewillexercisetheoption.?thelesseeexercisestheamounttobepaidfortheterminationoftheleaseoption,provided
thattheleasetermreflectsthelessee'sexerciseoftheoptiontoterminatethelease.?theresidualvalueoftheguaranteeprovidedbythelessee,thepartyconcernedwiththe
lesseeandtheindependentthirdpartywiththefinancialabilitytoperformtheguarantee
obligation.
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(IV)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:
?Iftheleasewouldhavebeenclassifiedasanoperatingleasehadthemodificationbeeneffect
attheinceptiondate,theGroupshouldaccountfortheleasemodificationasanewleasefromtheeffectivedateofthemodification,andmeasurethecarryingamountoftheunderlyingassetasthenetinvestmentintheleasebeforetheeffectivedateoftheleasemodification.?Iftheleasewouldhavebeenclassifiedasafinanceleaseifthemodificationhadbeenineffectattheinceptiondate,theGroupshouldapplytherequirementsofcontractmodificationandrenegotiationundertheASBENo.22FinancialInstruments:RecognitionandMeasurement.
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(IV)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.
31.2.5.2TheGroupasthebuyer-lessorIfthetransferofanassetinasaleandleasebacktransactiondoesnotconstitutesasale,theGroupdoesnotrecognizethetransferredasset,butrecognizesafinancialliabilityequaltothetransferproceedsinaccordancewiththeASBENo.22FinancialInstruments:RecognitionandMeasurement.Ifthetransferofanassetconstitutesasale,theGroupaccountsforthepurchaseoftheassetinaccordancewithotherapplicableASBEsandaccountsfortheleaseoftheasset.
32.ExchangeofNon-MonetaryAssetsWhereanon-monetaryassetstransactionsatisfiesthefollowingconditionsatthesametime,itshouldcalculatedbasedonfairvalue.Thetransactioniscommercialinnatureandthefairvalueoftheassetsreceivedorsurrenderedcanbemeasuredreliably.Thefairvalueoftheassetssurrenderedandrelevantpayabletaxesshallberegardedasthetransactioncostoftheassetsreceived.Forassetssurrendered,thedifferencebetweenthefairvalueandthecarryingvalueoftheassetsurrenderedshallberecordedintotheprofitorlossofthecurrentperiod.Ifanyexactevidenceshowingthatthefairvalueoftheassetsreceivedismorereliable,thecostofassetsreceivedandsurrenderedshallbecalculatedasdifferentway.Forassetsreceived,itscostshallbecalculatedbasedonfairvalueofassetsreceivedandrelevantpayabletaxes.Fortheassetssurrendered,thedifferencebetweenthefairvalueoftheassetsreceivedandthecarryingvalueoftheassetsurrenderedshallberecordedintotheprofitorlossofthecurrentperiod.Whereanon-monetaryassetstransactiondoesnotmeettheconditionsasprescribed,thecarryingvalueandrelevantpayabletaxesoftheassetssurrenderedshallbethecostoftheassetsreceivedandnoprofitorlossisrecognized.
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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued
33.DiscontinuedOperationDiscontinuedoperationreferstotheseparatelyidentifiablecomponentsthathavebeendisposedoforclassifiedasheldforsaleandmeetoneofthefollowingconditions:
(1)Thecomponentrepresentsanindependentmainbusinessoramajorbusinessarea.
(2)Thiscomponentisapartofarelatedplanthatintendstodisposeanindependentmain
businessoraseparatemainoperatingarea.
(3)Thiscomponentisasubsidiaryacquiredexclusivelyforresale.Profitsorlossesfromdiscontinuedoperationsarepresentedseparatelyintheincomestatementfromcontinuingoperations.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.Share-basedpaymentsAshare-basedpaymentisatransactionwhichtheGroupgrantsequityinstruments,inreturnforservicesrenderedbyemployeesorotherparties.TheGroup'sshare-basedpaymentsincludeequity-settledshare-basedpayments.Equity-settledshare-basedpaymentsinexchangeforservicesrenderedbyemployeesaremeasuredatthefairvalueoftheequityinstrumentsgrantedtoemployeesatthegrantdate.Suchamountisrecognizedasrelatedcostsorexpensesonastraight-linebasisoverthevestingperiod,basedonthebestestimateofthenumberofequityinstrumentsexpectedtovest;asrelatedcostsorexpensesatthegrantdate,iftheequityinstrumentsvestimmediately,withacorrespondingincreaseincapitalreserves.
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(V)CRITICALJUDGMENTSINAPPLYINGACCOUNTINGPOLICIESANDKEY
ASSUMPTIONSANDUNCERTAINTIESINACCOUNTINGESTIMATESIntheapplicationofaccountingpoliciesassetoutinNote(IV),theCompanyisrequiredtomakejudgments,estimatesandassumptionsaboutthecarryingamountsofitemsinthefinancialstatementsthatcannotbemeasuredaccurately,duetotheinternaluncertaintyoftheoperatingactivities.Thesejudgments,estimatesandassumptionsarebasedonhistoricalexperiencesoftheCompany'smanagementaswellasotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.TheCompanyregularlyreviewsthejudgments,estimatesandassumptionsonagoingconcernbasis.Changesinaccountingestimateswhichonlyaffectthecurrentperiodshouldberecognizedincurrentperiod;changeswhichnotonlyaffectthecurrentbutthefutureperiodsshouldberecognizedincurrentandfutureperiods.Atthebalancesheetdate,keyassumptionsanduncertaintiesthatarelikelytoleadtosignificantadjustmentstothebookvaluesofassetsandliabilitiesinthefutureare:
GoodwillimpairmentForthepurposeofimpairmenttesting,thepresentvalueoftheexpectedfuturecashflowsoftheassetsgrouporportfolioincludinggoodwillshallbecalculated,andsuchexpectedfuturecashflowsshallbeestimated.Meantime,apre-taxrateshallbedeterminedthatshouldreflectthetimevalueofmoneyonthecurrentmarketandthespecificinterestrisks.RecognitionofdeferredincometaxTheGroupcalculatesandmakesprovisionfordeferredtaxliabilitiesaccordingtotheprofitdistributionplanofsubsidiaries,associatesandthejointventuressubjecttotherelatedlaw.Forretainedearningswhicharenotallocatedbytheinvestmentcompany,sincetheprofitswillbeusedtoinvestthecompany'sdailyoperationandfuturedevelopment,nodeferredtaxliabilitiesarerecognized.Iftheactuallydistributedprofitsinthefuturearemoreorlessthanthoseexpected,correspondingdeferredtaxliabilitieswillberecognizedorreversedattheearlierofprofitsdistributiondateandthedeclarationdate,intheprofitandlossofthecurrentperiod.Deferredtaxassetsarerecognizedbasedonthedeductibletemporarydifferenceandthecorrespondingtaxrate,totheextentthatithasbecomeprobablethatfuturetaxableprofitwillbeavailableforthedeductibletemporarydifference.Ifinthefuturetheactualtaxableincomedoesnotcoincidewiththeamountcurrentlyexpected,thedeferredtaxassetsresultingwillberecognizedorreversedintheperiodwhenactuallyincurred,inprofitorloss.
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(V)CRITICALJUDGMENTSINAPPLYINGACCOUNTINGPOLICIESANDKEY
ASSUMPTIONSANDUNCERTAINTIESINACCOUNTINGESTIMATES-continuedEstimatedusefullivesandresidualvaluesoffixedassetsandintangibleassetsTheGroupassessestheestimatedusefullivesandresidualvaluesofitsfixedassetsandintangibleassets.Suchassessmentismadebyreferencetothehistoricalexperienceofactualusefullivesandresidualvaluesoffixedassetsandintangibleassetsofasimilarnatureandfunction,andmaysubjecttosignificantchangesduetotechnicalinnovationandfierceindustrycompetition.Wheretheestimatedusefullivesandresidualvaluesoffixedassetsandintangibleassetsarelessthanthepreviousestimates,theGroupwillincreasethedepreciationandamortisation,orwriteofforeliminatethetechnicallyobsoletefixedassetsorintangibleassets.(VI)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES
1.SignificantaccountingpoliciesandaccountingchangesTherearenosignificantaccountingpoliciesoraccountingchangesfortheperiod.(VII)TAXES
1.Majortaxesandtaxrates
CHINAMERCHANTSPORTGROUPCO.,LTD.Taxes
| Taxes | Taxbasis | Taxrate |
| Enterpriseincometax | Taxableincome | 15%-34%(Note1) |
| Dividendincometax | 5%,10%,25%(Note2) | |
| Value-addedTax("VAT")(Note3) | Incomefromsaleofgoods | 9%,13% |
| Incomefromtransportation,loadingandunloadingbusinessandpartofmodernserviceindustries | 6% | |
| Incomefromsaleofrealestate,propertymanagement,realestatelease,etc. | 5%,9% | |
| Socialcontributiontax(Note4) | Income | 0.65%-7.6% |
| Deedtax | Landuserightandpropertytransferamount | 3%-5% |
| Propertytax | 70%ofcostofpropertyorrentalincome | 1.2%or12% |
| Citymaintenanceandconstructiontax | VATpaid | 1%-7% |
| Educationsurtax | VATpaid | 3% |
| Landusetax | Landareaactuallyoccupied | RMB2.4-12persquaremeter |
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(VII)TAXES-continued
1.Majortaxesandtaxrates-continuedNote1:TheGroup'senterpriseincometaxiscalculatedbasedonthecurrenttaxratestipulatedby
localtaxlaws.Amongthem,theCompanyaresubjecttoanenterpriseincometaxrateof25%,thesubsidiariessetupinHongKongaresubjecttoanenterpriseincometaxrateof
16.5%,themajorityofsubsidiariessetupinChinaaresubjecttoanenterpriseincometaxrateof25%andcertainothersaresubjecttothepreferentialtaxrateforsmallandmicroenterprisesof20%,certaindomesticsubsidiariesaresubjecttothepreferentialtaxrateforhigh-techenterprisesorencouragedindustrialenterprisesintheregionof15%,andtheotheroverseassubsidiariesaresubjecttoenterpriseincometaxratesbetween28%and34%.Note2:ForeigninvestorswhoreceivedividendsofprofitsfromChinesesubsidiariesin2008and
thereaftergenerallyshallpaywithholdingincometaxatarateof10%inaccordancewiththerelevantprovisionsofthePRCenterpriseincometax.Forcompaniesincorporatedincertainregions(includingHongKongandSingapore),ifthecompaniesareactualownersholdingmorethan25%interestinthesubsidiariesinChina,theywillenjoyapreferentialtaxrateof5%.TheCompanyobtainsdividendsdistributedbyoverseassubsidiariesandshouldpayenterpriseincometaxatarateof25%inaccordancewithrelevantChinesetaxlaws.TheCompanyobtainstaxableincomeoutsideofChina,andtheamountofincometaxthathasbeenpaidabroadcanbeoffsetwiththecurrenttaxableamount.ThecreditlimitisthetaxableamountcalculatedinaccordancewiththeprovisionsoftheEnterpriseIncomeTaxLaw.Note3:TheVATamountisthebalanceoftheoutputtaxlessthedeductibleinputtax,andthe
outputtaxiscalculatedinaccordancewiththesalesincomeandthecorrespondingtaxratestipulatedintherelevanttaxlawsofChina.Note4:ThesocialcontributiontaxisthetaxpaidbytheoverseassubsidiaryoftheGroup,TCP
Participa??esS.A.(hereinafterreferredtoas"TCP"),tothelocalgovernment.
2.TaxpreferenceSomesubsidiariesoftheGroupinChinaarerecognizedashigh-techenterprisesorencouragedindustrialenterprisesintheregionandaresubjecttoanenterpriseincometaxrateof15%.TheGroup'ssubsidiariesoutsideChinamaybesubjecttoenterpriseincometaxpreferenceinaccordancewithrelevantlocaltaxpolicies.From1January2020to31December2022,theurbanlandusetaxfortheGroup'ssomedomesticsubsidiariesonthelandforbulkcommoditystoragefacilitiesisleviedatthereducedrateof50%ofthetaxamountapplicabletothegradeoftheland.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS
1.Cashandbankbalances
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Cash | 317,164.88 | 501,446.73 |
| RMB | 2,767.60 | 20,504.26 |
| USD | 126,333.53 | 105,169.96 |
| HKD | 24,949.27 | 23,918.14 |
| BRL | 6,248.01 | 5,600.44 |
| Others | 156,866.47 | 346,253.93 |
| Bankdeposit(Note1) | 13,814,617,473.72 | 12,367,010,853.19 |
| RMB | 10,794,399,500.42 | 8,311,399,392.65 |
| USD | 1,310,905,935.45 | 1,481,370,545.88 |
| EUR | 825,041,546.18 | 708,753,319.34 |
| BRL | 603,075,959.55 | 273,845,734.48 |
| HKD | 209,075,345.34 | 1,567,048,304.98 |
| AUD | 4,334,680.40 | 3,805,872.65 |
| Others | 67,784,506.38 | 20,787,683.21 |
| Othercashandbankbalances(Note2) | 357,029,556.48 | 404,837,106.85 |
| RMB | 340,056,364.44 | 404,810,610.86 |
| HKD | 16,973,192.04 | 26,495.99 |
| Total | 14,171,964,195.08 | 12,772,349,406.77 |
| Including:Totalamountoffundsdepositedoverseas | 3,372,236,316.76 | 4,261,299,895.41 |
Note1:ThebalanceofinterestreceivableinbankdepositswasRMB17,050,647.14,andthebank
depositsoftheGroupdepositedoverseasandrestrictedforremittancetoChinaattheendoftheyeartotallednil.Note2:ThebalanceofthesecuritiesmarginaccounttotalledRMB24,568,763.54inothercash
andbankbalancesattheendoftheyear,theprincipalofthetimecertificateofdepositinothercashandbankbalancesthatcanbereadilywithdrawnondemandattheendoftheyeartotalledRMB301,067,999.66,theinterestofthetimecertificateofdeposittotalledRMB18,321,267.34,therestricteddeposittotalledRMB13,059,525.94,andthefrozenfundsofETCcardbusinesstotalledRMB12,000.00.
2.Held-for-tradingfinancialassets
| Item | Closingbalance | Openingbalance |
| Financialassetsmeasuredatfairvaluethroughprofitorloss | 5,272,909,312.13 | 6,921,831,502.55 |
| Including:Debtinvestmentinstruments | - | - |
| Equityinvestmentinstruments | 157,609.38 | 157,196.79 |
| Structureddeposits | 5,272,751,702.75 | 6,921,674,305.76 |
| Total | 5,272,909,312.13 | 6,921,831,502.55 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
3.Notesreceivable
(1)Classificationofnotesreceivable
CHINAMERCHANTSPORTGROUPCO.,LTD.Category
| Category | Closingbalance | Openingbalance |
| Bankacceptance | 2,645,000.00 | 6,081,611.95 |
| Less:Provisionforcreditlosses(Note) | - | - |
| Carryingamount | 2,645,000.00 | 6,081,611.95 |
Note:TheGroupbelievesthattheacceptorofitsbankacceptancehashighcreditratingswithno
significantcreditrisks;therefore,noprovisionforcreditlossismade.
(2)Asat30June2022,therearenonotesreceivablepledged.
(3)Asat30June2022,therearenonotesreceivableendorsedordiscountedbutunmaturedat
thebalancesheetdate.
(4)Asat30June2022,therearenonotesreclassifiedtoaccountsreceivableduetothe
drawers'inabilitytosettlethenote.
(5)Fortheperiodfrom1Januaryto30June2022,therearenonotesreceivablewrittenoff.
4.Accountsreceivable
(1)Accountsreceivabledisclosedbyaging
| Aging | Closingbalance | ||
| Accountsreceivable | Provisionforcreditloss | Proportion(%) | |
| Within1year | 1,837,385,417.32 | 21,917,391.46 | 1.19 |
| Morethan1yearbutnotexceeding2years | 26,307,676.10 | 7,794,161.27 | 29.63 |
| Morethan2yearsbutnotexceeding3years | 20,176,790.17 | 14,381,144.29 | 71.28 |
| Morethan3years | 41,272,756.97 | 40,651,168.05 | 98.49 |
| Total | 1,925,142,640.56 | 84,743,865.07 | |
(2)Disclosureofaccountsreceivablebycategories
| Creditrating | Expectedcreditlossrate(%) | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionforcreditloss | Bookvalue | Carryingamount | Provisionforcreditloss | Bookvalue | ||
| A | 0.00-0.10 | 940,788,118.44 | 613,095.65 | 940,175,022.79 | 768,959,184.29 | 195,963.28 | 768,763,221.01 |
| B | 0.10-0.30 | 654,166,427.12 | 942,569.40 | 653,223,857.72 | 436,073,607.05 | 1,088,792.71 | 434,984,814.34 |
| C | 0.30-50.00 | 273,952,750.46 | 27,340,671.73 | 246,612,078.73 | 146,604,738.15 | 32,286,595.88 | 114,318,142.27 |
| D | 50.00-100.00 | 56,235,344.54 | 55,847,528.29 | 387,816.25 | 55,590,039.99 | 53,078,639.80 | 2,511,400.19 |
| Total | 1,925,142,640.56 | 84,743,865.07 | 1,840,398,775.49 | 1,407,227,569.48 | 86,649,991.67 | 1,320,577,577.81 | |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
4.Accountsreceivable-continued
(3)Changesinprovisionforcreditlossofaccountsreceivable
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | Total |
| Openingbalance(Restated) | 33,571,351.87 | 53,078,639.80 | 86,649,991.67 |
| Carryingamountofaccountsreceivableat1January2022 | |||
| --Transferredtocredit-impairedaccountsreceivables | -1,192,476.04 | 1,192,476.04 | - |
| --Reversedtonotcredit-impairedaccountsreceivable | - | - | - |
| Provisionfortheperiod | 46,968.36 | 1,187,240.89 | 1,234,209.25 |
| Reversalfortheperiod | -3,838,666.13 | - | -3,838,666.13 |
| Impactofforeigncurrencystatementtranslation | 309,158.72 | 389,171.56 | 698,330.28 |
| Closingbalance | 28,896,336.78 | 55,847,528.29 | 84,743,865.07 |
Therearenoaccountsreceivablewrittenoffduringthisperiod.
(4)Thetopfivebalancesofaccountreceivablesclassifiedbydebtor
| Nameofentity | Closingbalance | Aging | Proportionoftheamounttothetotalaccountsreceivable(%) | Closingbalanceofprovisionforcreditloss |
| Client1 | 173,509,071.41 | Within1year;morethan1yearbutnotexceeding2years;morethan2yearsbutnotexceeding3years;morethan3years | 9.01 | 223,802.09 |
| Client2 | 76,144,983.08 | Within1year,morethan1yearbutnotexceeding2years;morethan2yearsbutnotexceeding3years | 3.96 | 5,269.50 |
| Client3 | 75,023,858.80 | Within1year,morethan1yearbutnotexceeding2years | 3.90 | 25,670,997.40 |
| Client4 | 48,326,865.38 | Within1year;morethan1yearbutnotexceeding2years | 2.51 | 6,257.82 |
| Client5 | 48,159,528.65 | Within1year | 2.50 | - |
| Total | 421,164,307.32 | 21.88 | 25,906,326.81 |
5.Receivablesfinancing
(1)Receivablesfinancingclassification
| Item | Closingbalance | Openingbalance |
| Bankacceptancemeasuredatfairvalue | 191,399,515.52 | 238,429,402.71 |
(2)On30June2022,theGrouphasnopledgedreceivablesfinancing.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
5.Receivablesfinancing-continued
(3)Asat30June2022,receivablesfinancingendorsedordiscountedwhicharenotyetdueat
thebalancesheetdateareasfollows
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Closingbalance | Openingbalance | ||
| Derecognized | Recognized | Derecognized | Recognized | |
| Bankacceptancemeasuredatfairvalue | 79,889,314.46 | - | 153,044,339.75 | - |
6.Prepayments
(1)Aginganalysisofprepayment
| Aging | Closingbalance | Openingbalance | ||||
| Amount | Proportion(%) | Provisionforimpairment | Amount | Proportion(%) | Provisionforimpairment | |
| Within1year | 64,312,319.17 | 97.42 | - | 51,121,689.93 | 99.06 | - |
| Morethan1yearbutnotexceeding2years | 1,487,200.57 | 2.25 | - | 351,693.15 | 0.68 | - |
| Morethan2yearsbutnotexceeding3years | 189,800.25 | 0.29 | - | 109,329.76 | 0.21 | - |
| Morethan3years | 24,081.36 | 0.04 | - | 24,081.36 | 0.05 | - |
| Total | 66,013,401.35 | 100.00 | - | 51,606,794.20 | 100.00 | - |
(2)Asat30June2022,theGrouphasnosignificantprepaymentsagedmorethanoneyear.
(3)Thetopfivebalancesofprepaymentsclassifiedbyentities
| Nameofentity | RelationshipwiththeCompany | Closingbalance | Aging | Proportionoftheclosingbalancetothetotalprepayments(%) | Whyunsettled |
| Entity1 | Non-relatedparty | 6,610,362.41 | Within1year | 10.01 | Unsettledprepaidcommunicationexpenses |
| Entity2 | Non-relatedparty | 4,678,486.89 | Within1year | 7.09 | Unsettledadvancepremium |
| Entity3 | Non-relatedparty | 4,333,937.04 | Within1year | 6.57 | Unsettledadvancelabourexpenses |
| Entity4 | Non-relatedparty | 3,529,904.26 | Within1year | 5.35 | Unsettledadvancepremium |
| Entity5 | Non-relatedparty | 2,941,400.00 | Within1year | 4.46 | Unsettledadvanceconsultingfee |
| Total | 22,094,090.60 | 33.48 |
7.Otherreceivables
7.1Summaryofotherreceivables
| Item | Closingbalance | Openingbalance |
| Dividendreceivable | 1,727,561,836.95 | 264,626,493.85 |
| Otherreceivables | 506,747,690.21 | 431,650,102.02 |
| Total | 2,234,309,527.16 | 696,276,595.87 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.2Dividendreceivable
(1)Presentationofdividendreceivable
CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofinvestee
| Nameofinvestee | Closingbalance | Openingbalance |
| ShanghaiInternationalPort(Group)Co.,Ltd.("ShanghaiPortGroup") | 1,240,949,440.54 | - |
| ChinaNanshanDevelopment(Group)Incorporation("NanshanGroup") | 314,619,000.00 | 185,070,000.00 |
| LiaoningPortCo.,Ltd.(formallyknownas"DalianPortCo.,Ltd)."("LiaoningPort") | 73,133,008.80 | - |
| ZhanjiangMerchantsPortCityInvestmentCo.,Ltd.("MerchantsPortCity") | 41,847,044.77 | 41,847,044.77 |
| QingdaoPortInternationalCo.,Ltd. | 38,211,891.48 | - |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | 18,403,959.77 | 18,403,959.77 |
| Tin-CanIslandContainerTerminalLtd. | - | 19,076,909.00 |
| Others | 702,220.81 | 493,472.09 |
| Total | 1,727,866,566.17 | 264,891,385.63 |
| Less:Provisionforcreditloss | 304,729.22 | 264,891.78 |
| Bookvalue | 1,727,561,836.95 | 264,626,493.85 |
(2)Significantdividendreceivableagedmorethan1year
| Nameofinvestee | Closingbalance | Aging | Openingbalance | Whyunrecovered | Impairedornot?Andbasisofdetermination |
| NanshanGroup | 74,028,000.00 | Morethan1yearbutnotexceeding2years | 74,028,000.00 | Relevantproceduresarebeinghandledanditisexpectedtoberecoveredbytheendof2022 | Yes,expectedcreditlosses |
(3)Changesinprovisionforcreditlossofdividendsreceivable
| Item | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| Openingbalance | 264,891.78 | - | - | 264,891.78 |
| Carryingamountofdividendreceivablesat1January2022 | ||||
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | - | - | - | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionfortheperiod | 39,837.44 | - | - | 39,837.44 |
| Reversalfortheperiod | - | - | - | - |
| Transfer-outonderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | - | - |
| Closingbalance | 304,729.22 | - | - | 304,729.22 |
-74-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.3Otherreceivables
(1)Otherreceivablesdisclosedbyaging
CHINAMERCHANTSPORTGROUPCO.,LTD.
Aging
| Aging | Closingbalance | ||
| Otherreceivables | Provisionforcreditloss | Proportion(%) | |
| Within1year | 348,641,928.83 | 3,439,245.38 | 0.99 |
| Morethan1yearbutnotexceeding2years | 85,603,333.25 | 5,817,573.74 | 6.80 |
| Morethan2yearsbutnotexceeding3years | 457,837,123.77 | 456,131,922.11 | 99.63 |
| Morethan3years | 358,234,948.79 | 278,180,903.20 | 77.65 |
| Total | 1,250,317,334.64 | 743,569,644.43 | |
(2)Disclosureofotherreceivablesbynature
| Item | Closingbalance | Openingbalance |
| Operationcompensation(Note1) | 604,807,790.99 | 618,500,035.62 |
| Temporarypayments | 347,390,243.76 | 260,222,250.12 |
| Landcompensation(Note2) | 89,630,000.00 | 89,630,000.00 |
| Dedicatedgrants(Note3) | 32,484,730.00 | 24,800,000.00 |
| Deposits | 22,035,438.09 | 25,492,288.59 |
| Compensationforprofitorlossontransition | - | 6,347,258.89 |
| Others | 153,969,131.80 | 165,222,559.00 |
| Total | 1,250,317,334.64 | 1,190,214,392.22 |
| Less:Provisionforcreditloss | 743,569,644.43 | 758,564,290.20 |
| Bookvalue | 506,747,690.21 | 431,650,102.02 |
Note1:ItistheoperationcompensationamountingtoRMB604,807,790.99thatthesubsidiaries
oftheCompanyshouldcollectfromtheholdingcompaniesofminorityshareholders.Theaforesaidamounthasbeenoverdueandisexpectedtobeunrecoverable.Asof30June2022,provisionforcreditlossoftheamounthasbeenfullymade.Note2:On9October2021,ZhanjiangPort(Group)Co.,Ltd.,(hereinafterreferredtoasthe"
ZhanjiangPort"),subsidiaryoftheCompany,enteredintotheAgreementonRecoveryofState-ownedLandUseRightswiththePeople'sGovernmentofXiashanDistrict,ZhanjiangMunicipal.PursuanttotheAgreement,ZhanjiangPortshallreturnthelandlocatedintheZhanjiangComprehensiveBondedZoneontheeastoftheGangshuAvenueofapproximately195.68mu,whichisamountingtoRMB89,630,000.00.Theaforementionedlandwasthenreturnedbefore31December2021.ThenetbookvalueofthelandwasRMB63,458,203.57,andthecompensationgainrecognizednettingoftransactioncostswasRMB26,126,981.43.Asof30June2022,thetotallandcompensationnotrecoveredamountedtoRMB89,630,000.00.
-75-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.3Otherreceivables-continued
(2)Disclosureofotherreceivablesbynature-continuedNote3:ThisrepresentsthespecialsubsidyofRMB24,800,000.00forpubliclighteragebranch
lineobtainedbytheCompany'ssubsidiaryShantouCMPortGroupCo.,Ltd.("ShantouPort")in2022accordingtotheNoticeofShantouTransportationBureauandBureauofCommerceofShantouMunicipalityonContinuationofthePolicyofSubsidyforHeavyContainerImportsbyVoyageandSpecialSubsidyforShantouPublicLighterageBranchLine.Asof30June2022,RMB32,484,730.00hasnotyetbeenreceived.ThisspecialsubsidyiscloselyrelatedwiththebusinessofShantouPort,andistakenasacomponentoftheconsiderationforprovisionofpubliclighteragebranchlinebusiness.
(3)ProvisionforcreditlossonotherreceivablesAspartoftheGroup'screditriskmanagement,theGroupconductsinternalcreditratingsforitscustomersanddeterminestheexpectedlossrateforotherreceivablesforeachrating.Suchexpectedaveragelossratesarebasedonactualhistoricalimpairmentswhiletakingaccountofthecurrentandfutureeconomicconditions.Asat30June2022,thecreditriskandexpectedcreditlossofotherreceivablesofeachcategoryofcustomersarepresentedasbelow:
CHINAMERCHANTSPORTGROUPCO.,LTD.Creditrating
| 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 | 504,978,977.76 | - | - | 504,978,977.76 | 431,741,133.45 | - | - | 431,741,133.45 |
| B | 0.10-0.30 | - | - | - | - | - | - | - | - |
| C | 0.30-50.00 | - | - | - | - | - | - | - | - |
| D | 50.00-100.00 | - | - | 745,338,356.88 | 745,338,356.88 | - | - | 758,473,258.77 | 758,473,258.77 |
| Accountbalance | 504,978,977.76 | - | 745,338,356.88 | 1,250,317,334.64 | 431,741,133.45 | - | 758,473,258.77 | 1,190,214,392.22 | |
| Provisionforcreditloss | 132,740.79 | - | 743,436,903.64 | 743,569,644.43 | 106,031.43 | - | 758,458,258.77 | 758,564,290.20 | |
| Bookvalue | 504,846,236.97 | - | 1,901,453.24 | 506,747,690.21 | 431,635,102.02 | - | 15,000.00 | 431,650,102.02 | |
Including:Significantotherreceivablesforwhichtheprovisionforcreditlossisassessed
individuallyattheendoftheperiod(creditratingofD)
| Name | Carryingamount | Provisionforcreditloss | ECLrate(%) | Reasonsforprovision |
| Entity1 | 604,807,790.99 | 604,807,790.99 | 100.00 | Expectedtobeunrecoverable(Note) |
| Entity2 | 105,540,511.80 | 103,643,609.29 | 98.20 | Expectedtobeunrecoverable |
| Entity3 | 14,000,000.00 | 14,000,000.00 | 100.00 | Expectedtobeunrecoverable |
| Total | 724,348,302.79 | 722,451,400.28 | —— | —— |
Note:RefertoNote(VIII),7.3(2)Note1fordetails.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.3Otherreceivables-continued
(4)Changesinprovision,reversalandwrite-offforcreditlossofotherreceivables
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| Openingbalance | 106,031.43 | - | 758,458,258.77 | 758,564,290.20 |
| Carryingamountofotherreceivablesat1January2022 | ||||
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | -18,380.00 | - | 18,380.00 | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | 554,711.39 | - | -554,711.39 | - |
| Provisionfortheperiod | 86,687.80 | - | 20,650.27 | 107,338.07 |
| Reversalfortheperiod | -596,309.83 | - | - | -596,309.83 |
| Impactofforeigncurrencystatementtranslation | - | - | -14,505,674.01 | -14,505,674.01 |
| Closingbalance | 132,740.79 | - | 743,436,903.64 | 743,569,644.43 |
(5)Changesinthecarryingamountofotherreceivables
| Carryingamount | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| Openingbalance | 431,741,133.45 | - | 758,473,258.77 | 1,190,214,392.22 |
| Carryingamountofotherreceivablesat1January2021 | —— | —— | —— | —— |
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | -28,581.00 | - | 28,581.00 | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | 554,711.39 | - | -554,711.39 | - |
| Increasefortheyear | 66,869,966.63 | - | 1,896,902.51 | 68,766,869.14 |
| Derecognitionfortheyear | - | - | - | - |
| Otherchanges | 5,841,747.29 | - | -14,505,674.01 | -8,663,926.72 |
| Closingbalance | 504,978,977.76 | - | 745,338,356.88 | 1,250,317,334.64 |
(6)TheGrouphasnootherreceivableswrittenofffortheperiodfrom1Januaryto30June
2022.
-77-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.3Otherreceivables-continued
(7)Attheendoftheyear,thetopfivebalancesofotherreceivablesclassifiedbydebtorareas
below:
CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofentity
| Nameofentity | Nature | Closingbalance | Aging | Proportionoftheamounttotheotherreceivables(%) | Provisionforcreditlossattheendoftheperiod |
| Entity1 | Operationcompensation | 604,807,790.99 | Morethan2yearsbutnotexceeding3years;Morethan3years | 48.37 | 604,807,790.99 |
| Entity2 | Temporarypayments | 125,665,969.40 | Within1year;Morethan1yearbutnotexceeding2years | 10.05 | 12,566.60 |
| Entity3 | Temporarypayments | 105,540,511.80 | Within1year;Morethan2yearsbutnotexceeding3years;Morethan3years | 8.44 | 103,643,609.29 |
| Entity4 | Landcompensation | 89,630,000.00 | Within1year | 7.17 | 8,963.00 |
| Entity5 | Temporarypayments | 34,374,612.00 | Morethan3years | 2.75 | 3,437.46 |
| Total | 960,018,884.19 | 76.78 | 708,476,367.34 |
8.Inventories
(1)Categoriesofinventories
| Item | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionfordeclineinvalueofinventories | Bookvalue | Carryingamount | Provisionfordeclineinvalueofinventories | Bookvalue | |
| Rawmaterials | 194,515,181.25 | 730,054.35 | 193,785,126.90 | 174,693,225.25 | 730,054.35 | 173,963,170.90 |
| Goodsonhand | 12,714,372.72 | - | 12,714,372.72 | 6,576,244.72 | - | 6,576,244.72 |
| Others | 13,103,006.09 | - | 13,103,006.09 | 14,380,720.50 | - | 14,380,720.50 |
| Total | 220,332,560.06 | 730,054.35 | 219,602,505.71 | 195,650,190.47 | 730,054.35 | 194,920,136.12 |
(2)Provisionfordeclineinvalueofinventories
| Item | Openingbalance | Provision | Decrease | Closingbalance | |
| Reversal | Write-off | ||||
| Rawmaterials | 730,054.35 | - | - | - | 730,054.35 |
(3)Asat30June2022,theGrouphasnocapitalizedborrowingcostinthebalanceof
inventories.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
9.Assetsheldforsale
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Bookvalueattheendoftheperiod | Fairvalueattheendoftheperiod | Estimateddisposalexpenses | Estimateddisposaltime |
| Long-termassetsheldforsale(Note) | 337,442,757.28 | 1,380,876,000.00 | 31,475,777.36 | Expectedtoberelocatedandvacatedin2022 |
| Less:Provisionforimpairmentofassetsheldforsale | - | - | - | |
| Bookvalue | 337,442,757.28 | - | - |
Note:SeeNote(VIII).12(1)fordetails.
10.Non-currentassetsduewithinoneyear
| Item | Closingbalance | Openingbalance |
| Long-termreceivablesduewithinoneyear | 134,845,633.36 | 102,458,920.89 |
| Less:Provisionforcreditloss | 134,845.63 | 102,458.92 |
| Bookvalue | 134,710,787.73 | 102,356,461.97 |
11.Othercurrentassets
(1)Categoriesofothercurrentassets
| Item | Closingbalance | Openingbalance |
| Prepaidtaxes | 50,046,904.17 | 64,390,050.80 |
| Inputtaxtobedeductedandtobecertified | 77,152,852.90 | 254,909,235.38 |
| Others | 10,778,516.56 | 20,385,011.23 |
| Total | 137,978,273.63 | 339,684,297.41 |
| Less:Provisionforcreditloss | - | - |
| Bookvalue | 137,978,273.63 | 339,684,297.41 |
12.Long-termreceivables
(1)Detailsoflong-termreceivables
| Item | Closingbalance | Openingbalance | ||||
| Accountbalance | Provisionforcreditloss | Bookvalue | Accountbalance | Provisionforcreditloss | Bookvalue | |
| Advancestoshareholders(Note1) | 3,737,145,577.44 | 3,737,145.57 | 3,733,408,431.87 | 3,566,614,937.93 | 3,566,614.94 | 3,563,048,322.99 |
| Landcompensationreceivable(Note2) | 2,692,032,000.00 | - | 2,692,032,000.00 | 2,692,032,000.00 | - | 2,692,032,000.00 |
| Financingleasedeposits | 10,647,962.42 | 10,647.96 | 10,637,314.46 | 10,000,000.00 | 10,000.00 | 9,990,000.00 |
| Total | 6,439,825,539.86 | 3,747,793.53 | 6,436,077,746.33 | 6,268,646,937.93 | 3,576,614.94 | 6,265,070,322.99 |
| Less:Long-termreceivablesduewithin1year | 134,845,633.36 | 134,845.63 | 134,710,787.73 | 102,458,920.89 | 102,458.92 | 102,356,461.97 |
| Long-termreceivablesdueover1year | 6,304,979,906.50 | 3,612,947.90 | 6,301,366,958.60 | 6,166,188,017.04 | 3,474,156.02 | 6,162,713,861.02 |
-79-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
12.Long-termreceivables-continued
(1)Detailsoflong-termreceivables-continuedNote1:ItmainlyrepresentstheCompany'sreceivableofaggregateprincipalandinterestfrom
TerminalLinkSAS,equivalenttoRMB2,857,982,404.36.On25November2019,thesubsidiaryoftheCompany,ChinaMerchantsPortHoldingsCompany("CMPort")hassignedtheshareholders'agreementwiththeassociateTerminalLinkSASanditsshareholderCMACGMS.A.Accordingtothisagreement,CMPortintendstosubscribeformandatoryconvertiblebondsofUSD468millionandgrantaloanfacilityofUSD500milliontoTerminalLinkSASinordertosupportTerminalLinkSAS'acquisitionplanof10targetterminals.On26March2020,theCompanysubscribedmandatoryconvertiblebonds,Meanwhile,DirectAchieveInvestmentsLimited,asubsidiaryoftheCompany,providedalong-termloantoTerminalLinkSASfortheterminalacquisitionprojectandchargedinteresttoTerminalLinkSASatanannualinterestrateof6%.Note2:On5November2019,ShantouPortenteredintotheContractfortheAcquisitionofState-
OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately370.96mulocatedinZhuchiDeepwaterPortonthesouthofZhongshanEastRoadofShantoushouldbereturnedtoShantouLandReserveCenterbyShantouPort,whichisamountingtoRMB1,558,032,000.00.Amongthem,370.96muoflandandattachedbuildingshadbeentransferredin2019and2020respectively.Asat30June2022,thelandcompensationtotallingRMB1,158,032,000.00hasnotyetbeenrecovered.On21August2020,ShantouPortenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithLandReserveCenterofShantouHaojiangDistrict.Pursuanttothecontract,thelandandattachedbuildingsofapproximately152.34mulocatedinYutianwen,Queshi,HaojiangDistrict,Shantou,shouldbereturnedtoLandReserveCenterofShantouHaojiangDistrictbyShantouPort,whichisamountingtoRMB250,000,000.00.Thetransferofabove-mentionedlandandattachedbuildingswascompletedbefore31December2020.Asat30June2022,thelandcompensationtotallingRMB200,000,000.00hasnotyetbeenrecovered.
-80-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
12.Long-termreceivables-continued
(1)Detailsoflong-termreceivables-continuedNote2:-continued
On22December2020,ShantouPortenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately648.78mulocatedinZhuchiDeepwaterPortofShantoushouldbereturnedtoShantouLandReserveCenterbyShantouPort,whichisamountingtoRMB2,724,876,000.00.Amongthem,320muoflandandattachedbuildingshadbeentransferredby31December2020,whichisamountingtoRMB1,344,000,000.00.Asat30June2022,thelandcompensationtotallingRMB1,334,000,000.00hasnotyetbeenrecovered,andtheremaining328.78muoflandandattachedbuildingshavenotbeentransferred.Theintangibleassetsoftheremaining328.78muoflandandattachedbuildingsofRMB212,552,105.91,fixedassetsofRMB113,712,788.00andinvestmentpropertiesofRMB11,177,863.37arepresentedasassetsheldforsalebytheGroup.In2021,ShantouMunicipalGovernmentrevisedthe"DetailedControlPlanningofShantouZhugangNewTown(Partial)-ZhuchigangArea",asthefinalplanhasnotyetbeenapprovedandannounced,ShantouLandReserveCenterdelayedthetransferoftheabove328.78muoflandoriginallyplannedtobecompletedin2021to2022.
(2)Provisionforcreditlossonlong-termreceivables
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| Openingbalance | 3,576,614.94 | - | - | 3,576,614.94 |
| Carryingamountoflong-termreceivablesat1January2022 | ||||
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | - | - | - | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionfortheperiod | 171,178.59 | - | - | 171,178.59 |
| Reversalfortheperiod | - | - | - | - |
| Transfer-outonderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | - | - |
| Closingbalance | 3,747,793.53 | - | - | 3,747,793.53 |
(3)Asat30June2022,therearenolong-termreceivablesderecognizedduetothetransferof
financialassets.
(4)Therearenoassetsandliabilitiesarisingfromthetransferorcontinuinginvolvementof
long-termreceivablesat30June2022.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
13.Long-termequityinvestments(1)Detailsoflong-termequityinvestments
CHINAMERCHANTSPORTGROUPCO.,LTD.Investee
| Investee | Accountingmethod | Openingbalance | Changesfortheyear | Closingbalance | Closingvalueofprovisionforimpairment | ||||||||
| Increase | Decrease | Investmentprofitorlossunderequitymethod | Reconcilingitemsfromothercomprehensiveincome | Otherequitymovements | Cashdividendsorprofitsannouncedofissuance | Others | Provisionforimpairment | Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies | |||||
| I.Jointventures | |||||||||||||
| Euro-AsiaOceangateS.àr.l. | theequitymethod | 2,371,538,986.74 | - | - | 48,659,755.96 | - | - | - | - | - | 119,846,338.94 | 2,540,045,081.64 | - |
| PortofNewcastle | theequitymethod | 1,959,683,621.36 | - | - | 23,155,210.80 | - | - | -4,629,739.95 | - | - | 12,229,663.34 | 1,990,438,755.55 | - |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | theequitymethod | 1,490,513,461.30 | - | - | 56,430,615.96 | - | 2,906,496.49 | - | - | - | - | 1,549,850,573.75 | - |
| YantaiPortGroupLaizhouPortCo.,Ltd. | theequitymethod | 791,515,741.44 | - | - | 22,069,427.08 | - | - | -29,259,207.08 | - | - | - | 784,325,961.44 | - |
| Others | theequitymethod | 1,926,751,947.80 | 644,082,328.97 | -1,047,401.66 | 47,384,042.54 | - | 217,608.55 | -927,626.29 | - | - | 9,672,889.29 | 2,626,133,789.20 | - |
| Subtotal | 8,540,003,758.64 | 644,082,328.97 | -1,047,401.66 | 197,699,052.34 | - | 3,124,105.04 | -34,816,573.32 | - | - | 141,748,891.57 | 9,490,794,161.58 | - | |
| II.Associates | |||||||||||||
| ShanghaiPortGroup | theequitymethod | 28,843,807,383.69 | 1,894,169,292.91 | - | 2,960,021,044.89 | -350,079,522.44 | 15,114,746.40 | -1,240,949,440.54 | - | - | - | 32,122,083,504.91 | - |
| NanshanGroup | theequitymethod | 6,329,051,540.40 | - | - | 50,936,344.06 | -27,939,921.03 | 3,662,895.45 | -129,549,000.00 | - | - | -136,141.78 | 6,226,025,717.10 | - |
| TerminalLinkSAS | theequitymethod | 6,037,993,057.12 | - | - | 198,772,626.71 | -23,678,950.12 | - | -380,851,746.67 | - | - | 68,227,860.27 | 5,900,462,847.31 | - |
| LiaoningPort(Note) | theequitymethod | 3,972,400,632.03 | - | - | 83,953,806.32 | 40,093.35 | 3,768,835.51 | -85,395,093.74 | - | - | -1,885,732.57 | 3,972,882,540.90 | 338,331,990.24 |
| ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd. | theequitymethod | 7,306,935,034.12 | - | - | 13,281,800.00 | - | - | -122,444,928.51 | - | - | - | 7,197,771,905.61 | - |
| NingboZhoushanPortCompanyLimited("NingboZhoushan") | theequitymethod | 3,474,840,934.53 | - | - | 125,568,457.33 | -2,691,564.55 | 2,591,817.75 | -75,825,289.44 | - | - | -1,693,072.71 | 3,522,791,282.91 | - |
| ChinaMerchantsNortheastAsiaDevelopmentInvestmentCo.,Ltd. | theequitymethod | 1,016,048,532.69 | - | - | 3,357,030.81 | - | - | - | - | - | - | 1,019,405,563.50 | - |
| Others | theequitymethod | 4,832,370,951.30 | 3,300,000.00 | -202,134,386.43 | 577,583,317.59 | -41,796,740.96 | 355,006.29 | -272,707,595.96 | - | - | 192,013,632.51 | 5,088,984,184.34 | 2,203,345.92 |
| Subtotal | 61,813,448,065.88 | 1,897,469,292.91 | -202,134,386.43 | 4,013,474,427.71 | -446,146,605.75 | 25,493,301.40 | -2,307,723,094.86 | - | - | 256,526,545.72 | 65,050,407,546.58 | 340,535,336.16 | |
| Total | 70,353,451,824.52 | 2,541,551,621.88 | -203,181,788.09 | 4,211,173,480.05 | -446,146,605.75 | 28,617,406.44 | -2,342,539,668.18 | - | - | 398,275,437.29 | 74,541,201,708.16 | 340,535,336.16 | |
Note:OtherequitymovementsrefertoNote(VIII)45fordetails.
-82-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
13.Long-termequityinvestments-continued(2)Changesinprovisionsforimpairmentlossesoflong-termequityinvestments
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Openingbalance | Effectofconsolidationscopechange | Increase | Decrease | Effectoftranslationofforeigncurrencystatements | Closingbalance | |
| Amount | Reason | ||||||
| LiaoningPort | 337,700,959.79 | - | - | - | - | 631,030.45 | 338,331,990.24 |
| HOATHUONGCORPORATION | 2,135,644.39 | - | - | - | - | 67,701.53 | 2,203,345.92 |
| Total | 339,836,604.18 | - | - | - | - | 698,731.98 | 340,535,336.16 |
-83-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
14.Investmentsinotherequityinstruments
(1)Detailsofinvestmentsinotherequityinstruments
CHINAMERCHANTSPORTGROUPCO.,LTD.Investee
| Investee | Closingbalance | Openingbalance |
| ChinaOceanShippingAgency(Shenzhen)Co.,Ltd. | 144,998,784.69 | 144,998,784.69 |
| Others | 26,627,176.74 | 35,253,013.74 |
| Total | 171,625,961.43 | 180,251,798.43 |
(2)Detailsofnon-tradingequityinstruments
| Item | Dividendsincomerecognizedfortheyear | Accumulatedgains/losses | Amountstransferredtoretainedearningsfromothercomprehensiveincome | WhydesignatedasFVTOIC | Whytransferredtoretainedearningsfromothercomprehensiveincome |
| ChinaOceanShippingAgency(Shenzhen)Co.,Ltd. | - | 131,488,784.69 | - | Theintentionofholdingisneitherforsalenorprofitsinshort-term | —— |
| Others | 240,001.47 | -89,418.00 | 7,513,669.91 | Theintentionofholdingisneitherforsalenorprofitsinshort-term | —— |
| Total | 240,001.47 | 131,399,366.69 | 7,513,669.91 |
15.Othernon-currentfinancialassets
| Item | Closingbalance | Openingbalance |
| FinancialassetsatFVTPL | 818,869,293.22 | 809,515,244.87 |
| Including:Investmentsinequityinstruments | 818,869,293.22 | 809,515,244.87 |
| Including:QingdaoPortInternationalCo.,Ltd. | 741,877,911.87 | 782,723,863.52 |
| Others | 76,991,381.35 | 26,791,381.35 |
16.Investmentproperties
(1)Investmentpropertiesmeasuredundercostmethod
| Item | Landuserights | Buildings | Total |
| I.Totaloriginalcarryingamount | |||
| 1.Balanceat1January2022 | 114,634,546.67 | 6,181,503,172.76 | 6,296,137,719.43 |
| 2.Increaseinthecurrentperiod | 9,878,501.55 | - | 9,878,501.55 |
| (1)Purchase | - | - | - |
| (2)Transferfromintangibleassets | 9,878,501.55 | - | 9,878,501.55 |
| 3.Balanceat30June2022 | 124,513,048.22 | 6,181,503,172.76 | 6,306,016,220.98 |
| II.Accumulateddepreciationandamortization | |||
| 1.Balanceat1January2022 | 37,448,342.77 | 960,450,961.78 | 997,899,304.55 |
| 2.Increaseinthecurrentperiod | 3,775,519.94 | 90,893,517.69 | 94,669,037.63 |
| (1)Provisionfortheyear | 1,190,443.19 | 90,893,517.69 | 92,083,960.88 |
| (2)Transferfromintangibleassets | 2,585,076.75 | - | 2,585,076.75 |
| 3.Balanceat30June2022 | 41,223,862.71 | 1,051,344,479.47 | 1,092,568,342.18 |
| III.Impairmentprovision | |||
| 1.Balanceat1January2022 | - | - | - |
| 2.Increaseinthecurrentperiod | - | - | - |
| 3.Decreaseinthecurrentperiod | - | - | - |
| 4.Balanceat30June2022 | - | - | - |
| IV.Bookvalue | |||
| 1.At30June2022 | 83,289,185.51 | 5,130,158,693.29 | 5,213,447,878.80 |
| 2.At1January2022 | 77,186,203.90 | 5,221,052,210.98 | 5,298,238,414.88 |
-84-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
16.Investmentproperties-continued
(2)Investmentpropertieswithoutownershipcertificates
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Closingbalance | Openingbalance | Reasonsforcertificateoftitlenotcompleted | Expectedtimeofcompletion |
| Buildings,structuresandlanduserights | 16,816,545.03 | 17,610,186.51 | Somehousesandbuildingshavenotyetobtainedcertificatesoflanduserights | Thecertificateoftitleisunderway |
17.Fixedassets
17.1Summaryoffixedassets
| Item | Closingbalance | Openingbalance |
| Fixedassets | 31,387,921,093.66 | 31,710,355,613.32 |
| Disposaloffixedassets | 216,523.40 | 157,616.97 |
| Total | 31,388,137,617.06 | 31,710,513,230.29 |
17.2Fixedassets
(1)Detailsoffixedassets
| Item | Portandterminalfacilities | Buildings | Machineryandequipment,furnitureandfixtureandotherequipment | Motorvehiclesandcargoships | Total |
| I.Totaloriginalcarryingamount | |||||
| 1.Balanceat1January2022 | 32,137,263,023.73 | 1,977,485,549.10 | 16,457,340,117.72 | 2,175,153,444.46 | 52,747,242,135.01 |
| 2.Increasefortheperiod | 140,052,403.23 | 465,140.47 | 192,899,081.23 | 5,277,352.87 | 338,693,977.80 |
| (1)Purchase | 24,060,509.21 | 7,069.00 | 54,742,470.41 | 3,721,416.20 | 82,531,464.82 |
| (2)Transferfromdevelopmentexpenditure | 16,652,277.54 | - | 13,388,200.52 | - | 30,040,478.06 |
| (3)Transferfromconstructioninprogress | 99,339,616.48 | 458,071.47 | 124,768,410.30 | 1,555,936.67 | 226,122,034.92 |
| 3.Decreasefortheperiod | 23,849,062.28 | - | 19,502,900.34 | 6,726,385.88 | 50,078,348.50 |
| (1)Disposalorretirement | 10,939,226.82 | - | 19,502,900.34 | 6,726,385.88 | 37,168,513.04 |
| (2)Adjustmenttopreviouslycarriedforwardamounts | 12,909,835.46 | - | - | - | 12,909,835.46 |
| 4.Reclassificationadjustment | -57,706,048.66 | - | 57,706,048.66 | - | - |
| 5.Effectofchangesinforeignexchange | 313,942,949.32 | 6,534,778.92 | 143,554,050.76 | 31,835,590.59 | 495,867,369.59 |
| 6.Balanceat30June2022 | 32,509,703,265.34 | 1,984,485,468.49 | 16,831,996,398.03 | 2,205,540,002.04 | 53,531,725,133.90 |
| II.Accumulateddepreciation | |||||
| 1.Balanceat1January2022 | 9,650,764,730.66 | 546,215,006.96 | 9,774,172,565.39 | 1,008,208,125.97 | 20,979,360,428.98 |
| 2.Increasefortheperiod | 489,910,678.86 | 42,910,460.68 | 409,955,400.68 | 50,963,867.40 | 993,740,407.62 |
| (1)Provision | 489,910,678.86 | 42,910,460.68 | 409,955,400.68 | 50,963,867.40 | 993,740,407.62 |
| 3.Decreasefortheperiod | 10,336,114.90 | - | 16,359,938.65 | 6,392,354.16 | 33,088,407.71 |
| (1)Disposalorretirement | 10,336,114.90 | - | 16,359,938.65 | 6,392,354.16 | 33,088,407.71 |
| 4.Reclassificationadjustment | -5,822,631.00 | - | 5,822,631.00 | - | - |
| 5.Effectofchangesinforeignexchange | 61,222,836.34 | 1,658,145.48 | 75,399,575.92 | 7,984,960.90 | 146,265,518.64 |
| 6.Balanceat30June2022 | 10,185,739,499.96 | 590,783,613.12 | 10,248,990,234.34 | 1,060,764,600.11 | 22,086,277,947.53 |
| III.Impairmentprovision | |||||
| 1.Balanceat1January2022 | 57,419,468.96 | 63,906.47 | 42,717.28 | - | 57,526,092.71 |
| 2.Increasefortheperiod | - | - | - | - | - |
| 3.Decreasefortheperiod | - | - | - | - | - |
| 4.Balanceat30June2022 | 57,419,468.96 | 63,906.47 | 42,717.28 | - | 57,526,092.71 |
| IV.Bookvalue | |||||
| 1.Bookvalueat30June2022 | 22,266,544,296.42 | 1,393,637,948.90 | 6,582,963,446.41 | 1,144,775,401.93 | 31,387,921,093.66 |
| 2.Bookvalueat1January2022 | 22,429,078,824.11 | 1,431,206,635.67 | 6,683,124,835.05 | 1,166,945,318.49 | 31,710,355,613.32 |
(2)TheGrouphasnofixedassetsthataretemporarilyidleasat30June2022.
-85-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
17.Fixedassets-continued
17.2Fixedassets-continued
(3)Fixedassetsleasedoutunderoperatingleases
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Closingcarryingamount | Openingcarryingamount |
| Buildingsandstructures | 219,462,327.23 | 174,489,188.90 |
| Portandterminalfacilities | 18,881,149.59 | 38,957,300.62 |
| Machineryandequipment,furnitureandfixtureandotherequipment | 2,230,240.47 | 4,770,103.50 |
| Total | 240,573,717.29 | 218,216,593.02 |
(4)Fixedassetswithoutownershipcertificates
| Item | Closingcarryingamount | Openingcarryingamount | Remarks |
| Buildings,structures,portandterminalfacilities | 1,783,898,071.50 | 2,086,360,399.74 | Thisismainlyduetothefactthatcertainbuildingsandstructureshavenotyetobtainedthelanduserightsofthelandforsuchfixedassetsandtheapprovalprocedureshavenotyetbeencompleted. |
(5)Otherissues
| Item | Closingbalance | Remark |
| Costoffixedassetsfullydepreciatedbutstillinuseasattheendoftheperiod | 4,454,101,371.37 | |
| Costoffixedassetstemporarilyidleasattheendoftheperiod | - | |
| Fixedassetsdisposedandretiredfortheperiod: | ||
| Including:Costoffixedassetsdisposedandretired | 37,168,513.04 | |
| Netvalueoffixedassetsdisposedandretired | 4,080,105.33 | |
| Profitorlossondisposalorretirementoffixedassets | -2,267,679.83 |
(6)Asat30June2022,theGroup'sfixedassetswithrestrictedownershiprefertoNote(VIII)
62fordetails.
17.3Disposaloffixedassets
| Item | Closingbalance | Openingbalance |
| Machineryandequipment,furnitureandfixtureandotherequipment | 137,856.45 | 78,950.02 |
| Motorvehiclesandcargoships | 78,666.95 | 78,666.95 |
| Total | 216,523.40 | 157,616.97 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
18.Constructioninprogress
(1)Summaryofconstructioninprogress
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Constructioninprogress | 2,608,459,726.04 | 2,543,631,289.59 |
| Materialsforconstructionoffixedassets | 7,626,405.99 | 13,953,664.33 |
| Total | 2,616,086,132.03 | 2,557,584,953.92 |
(2)Detailsofconstructioninprogress
| Item | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionforimpairment | Bookvalue | Carryingamount | Provisionforimpairment | Bookvalue | |
| Portandterminalfacilities | 2,210,318,462.33 | - | 2,210,318,462.33 | 2,177,670,930.47 | - | 2,177,670,930.47 |
| Infrastructure | 224,656,608.81 | - | 224,656,608.81 | 220,531,192.85 | - | 220,531,192.85 |
| Berthsandyards | 11,473,491.01 | - | 11,473,491.01 | 15,718,097.89 | - | 15,718,097.89 |
| Others | 162,011,163.89 | - | 162,011,163.89 | 129,711,068.38 | - | 129,711,068.38 |
| Total | 2,608,459,726.04 | - | 2,608,459,726.04 | 2,543,631,289.59 | - | 2,543,631,289.59 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
18.Constructioninprogress-continued
(3)Thetoptenbalancesofconstructioninprogress
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Budgetamount | Openingbalance | Increasefortheperiod | Transfertofixedassets | Otherdecreasesfortheperiod | Effectofchangesinforeignexchange | Closingbalance | Proportionofaccumulatedconstructioninvestmentinbudget(%) | Constructionprogress(%) | Amountofaccumulatedcapitalizedinterest | Including:capitalizedinterestfortheperiod | Interestcapitalizationrateforthecurrentperiod(%) | Capitalsource |
| ReconstructionprojectofHIPGcontainer,oilterminalandtankarea | 2,784,594,837.99 | 876,374,998.71 | - | - | - | 43,712,771.24 | 920,087,769.95 | 57.68 | 57.68 | 889,944.03 | - | - | Self-fundingandloan |
| GeneralcargoterminalprojectatDonghaiIslandPortAreaofZhanjiangPort | 905,348,400.00 | 399,676,589.24 | 130,283.02 | - | - | - | 399,806,872.26 | 44.16 | 44.16 | 44,364,372.49 | - | - | Self-fundingandloan |
| PhaseIexpansionprojectforthecontainerterminalatBaomanPortArea,ZhanjiangPort | 2,342,775,800.00 | 180,616,086.92 | 377,084.30 | - | - | - | 180,993,171.22 | 7.73 | 7.73 | 953,620.60 | - | - | Self-fundingandloan |
| ReconstructionprojectforYard16#ofthebulkcargoterminal,ZhanjiangPort | 190,000,000.00 | 178,886,437.77 | 3,092,990.30 | - | - | - | 181,979,428.07 | 95.78 | 95.78 | 5,080,523.98 | 2,181,216.72 | 4.07 | Self-fundingandloan |
| PhaseIprojectforthestuffinganddestuffingserviceareaofBaomanPortArea,ZhanjiangPort | 606,521,505.83 | 133,198,536.39 | 727,323.19 | - | - | - | 133,925,859.58 | 22.08 | 22.08 | 16,689,500.56 | - | - | Self-fundingandloan |
| Haixingrenovationprojectandothers | 328,695,727.99 | 49,007,114.23 | 17,890,434.48 | 30,244.25 | - | - | 66,867,304.46 | 80.00 | 80.00 | - | - | - | Self-funding |
| BacklandReclamationProjectonHaidaganBulkYardandSupportingFacilitiesandLiquidBulkBerth | 60,140,000.00 | 59,111,396.60 | 209,277.60 | - | - | - | 59,320,674.20 | 99.00 | 99.00 | - | - | - | Self-funding |
| BaomanLogisticsCentreProjectatZhanjiangPort | 608,535,600.00 | 55,668,801.93 | - | - | - | - | 55,668,801.93 | 9.15 | 9.15 | - | - | - | Self-funding |
| 28#WarehouseRelocationProject | 67,670,000.00 | 47,477,624.53 | 2,477,064.22 | - | - | - | 49,954,688.75 | 73.82 | 73.82 | - | - | - | Self-funding |
| HIPGsubsequentconstructioninprogressatHanPort | 80,220,000.00 | 45,847,449.95 | 10,662,347.90 | 17,906,126.76 | 495,645.69 | 2,039,273.70 | 40,147,299.10 | 60.00 | 60.00 | - | - | - | Self-funding |
| Total | 7,974,501,871.81 | 2,025,865,036.27 | 35,566,805.01 | 17,936,371.01 | 495,645.69 | 45,752,044.94 | 2,088,751,869.52 | 67,977,961.66 | 2,181,216.72 |
(4)Materialsforconstructionoffixedassets
| Item | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionforimpairment | Bookvalue | Carryingamount | Provisionforimpairment | Bookvalue | |
| Materialsforconstructionoffixedassets | 7,626,405.99 | - | 7,626,405.99 | 13,953,664.33 | - | 13,953,664.33 |
-88-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
19.Right-of-useassets
(1)Detailsofright-of-useassets
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Portandterminalfacilities | Buildings | Machineryandequipment,furnitureandfixtureandotherequipment | Landuserights | Motorvehicles,cargoshipsandothers | Total |
| I.Cost | ||||||
| 1.Balanceat1January2022 | 6,607,528,989.94 | 169,444,697.23 | 461,374,461.67 | 2,574,889,099.92 | 9,309,435.58 | 9,822,546,684.34 |
| 2.Increasefortheperiod | 140,918,274.68 | - | 7,054.25 | 17,330,062.14 | 10,283,003.25 | 168,538,394.32 |
| (1)Purchase | 140,918,274.68 | - | 7,054.25 | 17,330,062.14 | 10,283,003.25 | 168,538,394.32 |
| 3.Decreasefortheperiod | 556,587.70 | 3,877,939.06 | 1,368,474.70 | - | - | 5,803,001.46 |
| (1)Terminationoflease | 556,587.70 | 3,877,939.06 | 1,368,474.70 | - | - | 5,803,001.46 |
| 4.Effectofchangesinforeignexchange | 272,903,639.04 | 6,169,963.74 | 698,612.31 | 128,299,833.41 | - | 408,072,048.50 |
| 5.Balanceat30June2022 | 7,020,794,315.96 | 171,736,721.91 | 460,711,653.53 | 2,720,518,995.47 | 19,592,438.83 | 10,393,354,125.70 |
| II.Accumulateddepreciation | ||||||
| 1.Balanceat1January2022 | 639,047,939.73 | 44,086,787.40 | 129,902,044.30 | 260,521,584.16 | 5,910,786.56 | 1,079,469,142.15 |
| 2.Increasefortheperiod | 122,988,891.16 | 9,435,050.88 | 14,135,804.70 | 24,573,773.17 | 2,885,635.26 | 174,019,155.17 |
| (1)Provision | 122,988,891.16 | 9,435,050.88 | 14,135,804.70 | 24,573,773.17 | 2,885,635.26 | 174,019,155.17 |
| 3.Decreasefortheperiod | 555,824.01 | 2,293,736.24 | 966,556.23 | - | - | 3,816,116.48 |
| (1)Terminationoflease | 555,824.01 | 2,293,736.24 | 966,556.23 | - | - | 3,816,116.48 |
| 4Effectofchangesinforeignexchange | 21,920,355.36 | 1,106,028.67 | 504,673.20 | 13,554,848.28 | - | 37,085,905.51 |
| 5.Balanceat30June2022 | 783,401,362.24 | 52,334,130.71 | 143,575,965.97 | 298,650,205.61 | 8,796,421.82 | 1,286,758,086.35 |
| III.Impairmentprovision | ||||||
| 1.Balanceat1January2022 | - | - | - | - | - | - |
| 2.Increasefortheperiod | - | - | - | - | - | - |
| 3.Decreasefortheperiod | - | - | - | - | - | - |
| 4.Balanceat30June2022 | - | - | - | - | - | - |
| IV.Bookvalue | ||||||
| 1.Bookvalueat30June2022 | 6,237,392,953.72 | 119,402,591.20 | 317,135,687.56 | 2,421,868,789.86 | 10,796,017.01 | 9,106,596,039.35 |
| 2.Bookvalueat1January2022 | 5,968,481,050.21 | 125,357,909.83 | 331,472,417.37 | 2,314,367,515.76 | 3,398,649.02 | 8,743,077,542.19 |
(2)Amountrecognizedinprofitorloss
| Category | Amountincurredinthecurrentperiod |
| Depreciationexpensesofright-of-useassets(Note1) | 174,019,155.17 |
| Interestexpensesonleaseliabilities(Note2) | 38,284,349.10 |
| Expensesforshort-termleases | 29,143,920.78 |
| Expensesforleasesoflowvalueassets | 1,491,716.96 |
| Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities(Note3) | - |
| Revenuefromsubleaseofright-of-useassets | 6,965,841.44 |
Note1:Nodepreciationexpensesofright-of-useassetsarecapitalizedintheperiodfrom1
Januaryto30June2022.Note2:Nointerestexpensesofleaseliabilitiesarecapitalizedintheperiodfrom1Januaryto30
June2022.Note3:Novariableleasepaymentswereincludedinthemeasurementofleaseliabilitiesinthe
periodfrom1Januaryto30June2022.
-89-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
19.Right-of-useassets-continued
(3)Thetotalcashoutflowsinrelationtoleasesfortheperiodfrom1Januaryto30June2022
amountingtoRMB135,717,792.79.
(4)LeaseassetsoftheGroupwiththeleasetermasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.Category
| Category | Leaseterm |
| Portandterminalfacilities | 1-99years |
| Buildings | 1-5years |
| Machineryandequipment,furnitureandfixtureandotherequipment | 1-6years |
| Motorvehiclesandcargoships | 1-5years |
| Others | 1-35years |
20.Intangibleassets
(1)Detailsofintangibleassets
| Item | Landuserights | Terminalmanagementrights | Others | Total |
| I.Totaloriginalcarryingamount | ||||
| 1.Balanceat1January2022 | 14,631,047,267.00 | 8,239,023,292.58 | 1,303,728,681.52 | 24,173,799,241.10 |
| 2.Increasefortheyear | 942,556.51 | 2,412,143.60 | 23,702,393.53 | 27,057,093.64 |
| (1)Purchase | 942,556.51 | 2,412,143.60 | 18,513,974.06 | 21,868,674.17 |
| (2)Transferfromconstructioninprogress | - | - | 5,188,419.47 | 5,188,419.47 |
| 3.Decreasefortheperiod | 9,878,501.55 | - | - | 9,878,501.55 |
| (1)Disposal | - | - | - | - |
| (2)Transfertoinvestmentproperties | 9,878,501.55 | - | - | 9,878,501.55 |
| 4.Effectofchangesinforeignexchange | 8,822,821.60 | 333,056,568.11 | 50,184,028.91 | 392,063,418.62 |
| 5.Balanceat30June2022 | 14,630,934,143.56 | 8,574,492,004.29 | 1,377,615,103.96 | 24,583,041,251.81 |
| II.Accumulateddepreciation | ||||
| 1.Balanceat1January2022 | 3,711,905,647.14 | 1,519,335,933.88 | 467,145,279.15 | 5,698,386,860.17 |
| 2.Increasefortheyear | 171,496,571.39 | 114,210,382.27 | 33,897,746.49 | 319,604,700.15 |
| (1)Provision | 171,496,571.39 | 114,210,382.27 | 33,897,746.49 | 319,604,700.15 |
| 3.Decreasefortheperiod | 2,585,076.75 | - | - | 2,585,076.75 |
| (1)Disposal | - | - | - | - |
| (2)Transfertoinvestmentproperties | 2,585,076.75 | - | - | 2,585,076.75 |
| 4.Effectofchangesinforeignexchange | 3,722,117.46 | 55,368,782.17 | 15,083,304.29 | 74,174,203.92 |
| 5.Balanceat30June2022 | 3,884,539,259.24 | 1,688,915,098.32 | 516,126,329.93 | 6,089,580,687.49 |
| III.Impairmentprovision | ||||
| 1.Balanceat1January2022 | - | - | - | - |
| 2.Increasefortheperiod | - | - | - | - |
| 3.Decreasefortheperiod | - | - | - | - |
| 4.Balanceat30June2022 | - | - | - | - |
| IV.Bookvalue | ||||
| 1.Bookvalueat30June2022 | 10,746,394,884.32 | 6,885,576,905.97 | 861,488,774.03 | 18,493,460,564.32 |
| 2.Bookvalueat1January2022 | 10,919,141,619.86 | 6,719,687,358.70 | 836,583,402.37 | 18,475,412,380.93 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
20.Intangibleassets-continued
(2)Landuserightswithoutownershipcertificateson30June2022:
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Closingcarryingamount | Openingcarryingamount |
| Landuserights(Note) | 1,849,091,435.77 | 1,882,080,080.20 |
Note:At30June2022,thelanduserightswithoutownershipcertificatesmainlyrepresentthe
landuserightsforberthandstorageyardwithinChiwanPortareaobtainedbytheGroupfromNanshanGroup,withanareaof1,049,946.00㎡,andthelanduserightsforDachanwanPortareaPhaseIIobtainedbyASJ,ofwhichthecostsareRMB1,400,288,984.00andRMB918,521,317.23respectively.TheGrouplanduserightsforberthandstorageyardwithinChiwanPortareaobtainedbytheGroupfromNanshanGrouprepresentthecapitalcontributionfromNanshanGrouptotheCompanyuponrestructuringoftheCompany,whiletheremaininglanduserightsareobtainedfromNanshanGroupbywayoflong-termlease.Uptodate,asNanshanGrouphasnotyetobtainedthelanduserightsinrespectofthelandswithinChiwanwatershed,includingaforementionedcapitalinvestmentandlandleasetotheGroup,thereforetheGroupcannotobtaintheownershipcertificateforrelevantlandandbuildingsonsuchland.TheCompany'smanagementunderstoodthattheNanshanGroupisnegotiatingwithrelevantgovernmentdepartmentsregardingthehistoricalissues,andthedatewhentheGroupcanobtaintheownershipcertificateofrelevantlandandbuildingsonsuchlandcannotbeestimatedreliably.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
21.Developmentexpenditure
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Effectofchangesinforeignexchange | Closingbalance | |||
| Transfertointangibleassets | Transfertoconstructioninprogress | Transfertofixedassets | Transfertoprofitorlossfortheperiod | |||||
| PortfolioportsprojectinGreaterBayArea | - | 32,372,197.77 | - | - | - | 32,372,197.77 | - | - |
| R&DofIoTapplicationsoftwaresystem | - | 5,827,326.58 | - | - | - | 5,827,326.58 | - | - |
| R&Dofportpublicinformationplatform | - | 5,671,032.24 | - | - | - | 5,671,032.24 | - | - |
| R&Dofintelligentgatesystem | - | 5,358,771.30 | - | - | - | 5,358,771.30 | - | - |
| AutomationofRMGyardoperation | - | 4,612,340.96 | - | - | - | 4,612,340.96 | - | - |
| Functionalityenhancementprojectfortheintelligentfull-fieldtransfermodulefortrailers | - | 4,200,601.25 | - | - | - | 4,200,601.25 | - | - |
| Developmentandupdateofwirelessterminalproduction | - | 4,005,763.13 | - | - | - | 4,005,763.13 | - | - |
| R&Dofremote-controlRTGsystemforsmash-proofsafetyprotectionofadjacentboxes | - | 3,863,169.92 | - | - | - | 3,863,169.92 | - | - |
| Smartportproject | - | 3,412,971.63 | - | - | - | 3,412,971.63 | - | - |
| Smartgateproject | - | 3,262,340.85 | - | - | - | 3,262,340.85 | - | - |
| R&Dofautonomoussafetyprotectionsystemforgantrycraneoperation | - | 3,078,355.71 | - | - | - | 3,078,355.71 | - | - |
| Others | 82,391,225.85 | 48,904,720.39 | - | - | 30,040,478.06 | 39,168,307.16 | - | 62,087,161.02 |
| Total | 82,391,225.85 | 124,569,591.73 | - | - | 30,040,478.06 | 114,833,178.50 | - | 62,087,161.02 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
22.Goodwill
(1)Carryingamountofgoodwill
CHINAMERCHANTSPORTGROUPCO.,LTD.
Investee
| Investee | Openingbalance | Increase | Decrease | Effectofchangesinforeignexchange | Closingbalance |
| TCP | 2,329,133,573.36 | - | - | 275,832,272.60 | 2,604,965,845.96 |
| MegaShekouContainerTerminalsLimited | 1,815,509,322.42 | - | - | - | 1,815,509,322.42 |
| CMPort | 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 |
| NingboDaxieChinaMerchantsInternationalTerminalsCompanyLimited("NingboDaxie") | 188,497,194.41 | - | - | - | 188,497,194.41 |
| Others | 288,255,850.88 | - | - | - | 288,255,850.88 |
| Total | 6,994,823,986.40 | - | - | 275,832,272.60 | 7,270,656,259.00 |
(2)Provisionforimpairmentsofgoodwill
| Investee | Openingbalance | Increase | Decrease | Effectofchangesinforeignexchange | Closingbalance |
| ZhanjiangPort | 418,345,307.68 | - | - | - | 418,345,307.68 |
| ShantouPort | 552,317,736.65 | - | - | - | 552,317,736.65 |
| Total | 970,663,044.33 | - | - | - | 970,663,044.33 |
(3)InformationofassetsgrouporportfolioofassetsgrouptowhichthegoodwillbelongsTheGrouptakestheabilitytoindependentlygeneratecashinflows,managethewayofproductionandoperationactivities(mainlybygeographicareas)andunifieddecisionontheuseanddisposaloftheassetsasthecriteriatodetermineassetsgrouporportfolioofassetsgroup,andperformsimpairmenttestofgoodwillfortheassetsgrouporportfolioofassetsgroupasdetermined.Asat30June2022,theassetsgrouporportfolioofassetsgroupdeterminedbytheGroupinclude:TCP;MegaShekouContainerTerminalsLimited,includingShekouContainerTerminalsLtd.,ShenzhenLianyunjieContainerTerminalsCo.,Ltd.,AnxunjieContainerTerminals(Shenzhen)Co.,Ltd.;CMPort;ShantouPort;Zhanjiangport;ShenzhenMawanProject,includingShenzhenMawanPortWaterwayCo.,Ltd.,ShenzhenMagangGodown&WharfCo.,Ltd.(hereinafterreferredtoas"MagangGodown&Wharf").
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
22.Goodwill-continued
(4)ImpairmenttestofgoodwillandkeyparametersWhentestingthegoodwillforimpairment,theGroupcomparesthecarryingamountofrelatedassetsgroupandportfolioofassetsgroup(includinggoodwill)withtherecoverableamount.Iftherecoverableamountislessthanthecarryingamount,thedifferenceisincludedinprofitorlossfortheperiod.TheGroupdeterminestherecoverableamountoftheassetsgroupandportfolioofassetsgroupthatgenerategoodwillatfairvaluelesscostofdisposaloratpresentvalueofexpectedfuturecashflows.Thefairvalueisdeterminedusingmarketapproach.Thepresentvalueofcashflowsisestimatedbasedontheforecastofcashflowsfor5yearsto27yearsdetailedforecastperiodandsubsequentforecastperiod.Theestimatedfuturecashflowsforthedetailedforecastperiodarebasedonthebusinessplanestablishedbythemanagement;theexpectedfuturecashflowsforthesubsequentforecastperiodaredeterminedinconjunctionwiththelevelofthefinalyearofthedetailedforecastperiod,combinedwiththeGroup'sbusinessplans,industrytrendsandinflationrates.Thegrowthrateadoptedwillnotexceedthelong-termaveragegrowthrateofthecountrywheretheassetsgroupandportfolioofassetsgrouparelocated.ThekeyassumptionsusedbytheGroupinestimatingthepresentvalueoffuturecashflowsincludegrowthrateanddiscountrateetc.Thepre-taxdiscountrateandthegrowthrateforsubsequentforecastedperiodadoptedfortheperiodfrom1Januaryto30June2022arearound
10.75%-17.45%and2.24%-3.00%respectively.TheparametersofkeyassumptionsdeterminedbytheGroup'smanagementareinlinewiththeGroup'shistoricalexperienceorexternalsourceofinformation.
23.Long-termprepaidexpenses
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Openingbalance(Restated) | Increaseinthecurrentperiod | Amortizationinthecurrentperiod | Otherchanges | Closingbalance | Reasonforotherchanges |
| Tongguchannelwideningproject(Note1) | 473,211,130.99 | - | 8,882,217.12 | - | 464,328,913.87 | |
| Westportareapublicchannelwideningproject(Note2) | 252,759,769.78 | - | 3,320,513.98 | - | 249,439,255.80 | |
| Dredgingproject | 76,591,867.23 | - | 6,557,400.42 | - | 70,034,466.81 | |
| RelocationprojectofNanhaiRescueBureau | 38,661,479.90 | - | 553,684.20 | - | 38,107,795.70 | |
| Leaseholdimprovement | 20,786,525.04 | 6,913,245.53 | 1,385,481.07 | - | 26,314,289.50 | |
| Others | 113,983,768.58 | 16,256,254.17 | 16,592,176.39 | - | 113,647,846.36 | |
| Total | 975,994,541.52 | 23,169,499.70 | 37,291,473.18 | - | 961,872,568.04 |
Note1:ThisrepresenttheGroup'sactualexpensesontheShenzhenWestPortAreaTonggu
Channel210-270MetersWideningProject.AccordingtorelevantresolutionsofShenzhenmunicipalgovernment,theexpensesincurredforthe210-240MetersWideningProjectarebornbytheenterpriseandgovernmenton60%to40%principle,andthe240-270MetersWideningProjectarebornbytheenterpriseandgovernmenton50%to50%principle.TheCompany'ssubsidiaryhasincludedtheexpensesondeepeningthechannelintheitemof"long-termprepaidexpenses",andamortizedsuchexpensesovertheexpectedusefullifeof35or40yearsusingstraight-linemethodsincethecompletionofthetwowideningprojectsin2008and2019,respectively.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
23.Long-termprepaidexpenses-continuedNote2:ThisrepresenttheGroup'sactualexpensesontheShenzhenWesternPortAreaPublic
ChannelWideningProject,ofwhichthewideningof240-270metersinthefirstsectionwascompletedon1June2019andthewideningof240-270metersinthesecondandthirdsectionswascompletedon5November2020.AccordingtorelevantresolutionsofShenzhenMunicipalGovernment,theexpensesincurredfortheprojectarebornbytheenterpriseandgovernmenton50%to50%principle.TheCompany'ssubsidiaryhasincludedtheexpensesondeepeningthechannelintheitemof"long-termprepaidexpenses",andamortizedsuchexpensesovertheexpectedusefullifeof40yearsusingstraight-linemethodsincethecompletionofeachsectionofthechannelwideningproject.
24.Deferredincometax
(1)Deferredtaxassetswithoutoffsetting
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Closingbalance | Openingbalance | ||
| Deductibletemporarydifferences | Deferredtaxassets | Deductibletemporarydifferences | Deferredtaxassets | |
| Unrealizedprofit | 766,887,701.51 | 187,276,045.72 | 769,833,723.80 | 187,934,375.63 |
| Depreciationoffixedassets | 174,288,428.11 | 38,493,103.34 | 174,310,058.63 | 38,498,510.97 |
| Deductiblelosses | 218,036,904.87 | 69,500,027.40 | 243,923,028.71 | 77,871,713.03 |
| Provisionforcreditloss | 134,776,259.10 | 22,673,991.19 | 134,107,345.89 | 22,607,019.97 |
| Accruedandunpaidwages | 132,072,868.68 | 31,869,261.11 | 133,228,573.09 | 32,069,398.58 |
| Provisions | 31,464,238.16 | 10,697,840.97 | 23,243,718.18 | 7,902,864.18 |
| Deferredincome | 37,960,861.99 | 9,070,175.57 | 37,320,614.70 | 8,908,126.11 |
| Amortizationofcomputer | 9,375,355.92 | 2,343,838.98 | 9,375,355.92 | 2,343,838.98 |
| Organizationcosts | 5,967,432.36 | 1,491,858.09 | 5,967,432.36 | 1,491,858.09 |
| Provisionforimpairmentlossesofassets | 3,858,354.37 | 964,588.59 | 3,858,354.37 | 964,588.59 |
| Others | 75,569,406.07 | 18,755,092.85 | 69,133,036.30 | 17,553,416.71 |
| Total | 1,590,257,811.14 | 393,135,823.81 | 1,604,301,241.95 | 398,145,710.84 |
(2)Deferredtaxliabilitieswithoutoffsetting
| Item | Closingbalance | Openingbalance | ||
| Taxabletemporarydifferences | Deferredtaxliabilities | Taxabletemporarydifferences | Deferredtaxliabilities | |
| Withholdingdividendincometax | 33,952,749,050.88 | 2,384,965,556.04 | 32,834,363,823.45 | 2,276,809,099.05 |
| Fairvalueadjustmentofassetsacquiredbybusinesscombination | 7,824,115,963.67 | 1,784,128,784.33 | 7,922,514,263.15 | 1,794,717,729.81 |
| Depreciationoffixedassets | 896,683,494.88 | 240,925,764.77 | 855,120,746.48 | 226,223,855.58 |
| Changesinfairvalueofothernon-currentfinancialassets | 454,720,002.54 | 94,786,979.94 | 478,483,648.29 | 99,590,902.64 |
| Changesinfairvalueofotherequityinvestments | 131,488,784.68 | 32,872,196.17 | 138,988,784.68 | 34,747,196.17 |
| Others(Note) | 1,161,023,182.22 | 122,937,763.19 | 1,101,926,283.77 | 118,328,687.36 |
| Total | 44,420,780,478.87 | 4,660,617,044.44 | 43,331,397,549.82 | 4,550,417,470.61 |
Note:Thismainlyrepresentsthetaxabletemporarydifferencesarisingfromthefairvalue
measurementofequityheldbytheCompany'ssubsidiariesinNingboZhoushanandthecorrespondingdeferredtaxliabilities.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
24.Deferredincometax-continued
(3)Deferredtaxassetsorliabilitiespresentedatthenetamountafteroffsetting
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Offsetamountofdeferredtaxassetsandliabilitiesinthecurrentperiod | Deferredtaxassetsorliabilitiesafteroffsettinginthecurrentperiod | Offsetamountofdeferredtaxassetsandliabilitiesinthepriorperiod | Deferredtaxassetsorliabilitiesafteroffsettinginthepriorperiod |
| Deferredtaxassets | - | 393,135,823.81 | - | 398,145,710.84 |
| Deferredtaxliabilities | - | 4,660,617,044.44 | - | 4,550,417,470.61 |
(4)Detailsofunrecognizeddeferredtaxassets
| Item | Closingbalance | Openingbalance |
| Deductibletemporarydifferences | 960,300,792.58 | 944,129,558.25 |
| Deductiblelosses | 2,025,029,572.67 | 2,197,937,158.38 |
| Total | 2,985,330,365.25 | 3,142,066,716.63 |
TheGrouprecognizesdeferredincometaxassetstotheextentoffuturetaxableincomethatislikelytobeobtainedtooffsetthedeductibletemporarydifferencesanddeductiblelosses.Fortheexcessofdeductibletemporarydifferencesanddeductiblelossesoverfuturetaxableincome,nodeferredtaxassetsisrecognized.
(5)Deductiblelossesforunrecognizeddeferredtaxassetswillbeexpiredinthefollowing
years:
| Year | Closingbalance | Openingbalance |
| 2022 | 321,213,089.46 | 418,419,582.20 |
| 2023 | 522,929,889.68 | 568,545,269.63 |
| 2024 | 472,227,487.08 | 501,044,247.06 |
| 2025 | 384,408,840.73 | 385,310,677.29 |
| 2026 | 147,209,763.68 | 300,322,682.88 |
| 2027 | 159,703,180.88 | - |
| Noexpirationdate | 17,337,321.16 | 24,294,699.32 |
| Total | 2,025,029,572.67 | 2,197,937,158.38 |
25.Othernon-currentassets
| Item | Closingbalance | Openingbalance |
| Advancesofchannelproject(Note) | 977,777,293.63 | 965,997,076.71 |
| Prepaymentsoffixedassets | 269,079,919.43 | 66,519,391.16 |
| Prepaymentsoflanduserights | 132,334,704.86 | 132,334,704.86 |
| Prepaymentsofterminalfranchise | 27,594,981.06 | 28,084,523.57 |
| Others | 54,532,290.51 | 38,157,256.39 |
| Total | 1,461,319,189.49 | 1,231,092,952.69 |
| Less:Impairmentprovision | - | - |
| Bookvalue | 1,461,319,189.49 | 1,231,092,952.69 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
25.Othernon-currentassets-continuedNote:ThisrepresentthattheCompany'ssubsidiaryZhanjiangPort,uponitsreorganizationinto
ajointstockcompanyin2007,signedtheChannelArrangementAgreementwithState-ownedAssetsSupervisionandAdministrationCommissionofZhanjiang("ZhanjiangSASAC")andChinaMerchantsInternationalTerminal(Zhanjiang)Co.,Ltd.Accordingtotheagreement,thechannelbelongstoZhanjiangSASAC,thereforetheCompanyincludedtheadvancesofchannelprojectthatshouldberepaidbyZhanjiangSASACinothernon-currentassets.
26.Short-termborrowings
(1)Classificationofshort-termborrowings
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Creditloan | 14,281,113,052.95 | 12,450,169,472.03 |
| Guaranteedloan(Note) | 1,201,166,666.67 | 1,201,283,333.33 |
| Total | 15,482,279,719.62 | 13,651,452,805.36 |
Note:TheloanisguaranteedbytheCompany.
(2)At30June2022,theGrouphasnoshort-termborrowingsthatwereoverdue.
27.Notespayable
| Category | Closingbalance | Openingbalance |
| Bankacceptance | - | - |
| Commercialacceptance | 9,089,940.00 | 1,895,987.17 |
| Total | 9,089,940.00 | 1,895,987.17 |
28.Accountspayable
| Item | Closingbalance | Openingbalance |
| Servicefee | 273,406,457.32 | 279,969,574.04 |
| Materialpurchase | 116,869,662.40 | 147,895,793.90 |
| Constructionfee | 89,259,024.17 | 189,852,525.62 |
| Equipmentpayments | 24,795,168.16 | 34,478,229.18 |
| Rentalfee | 7,049,888.69 | 6,226,422.72 |
| Others | 199,736,764.81 | 185,397,893.05 |
| Total | 711,116,965.55 | 843,820,438.51 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
28.Accountspayable-continued
(1)Detailsofaccountspayableareasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.
Aging
| Aging | Closingbalance | Openingbalance(restated) | ||
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within1year(inclusive) | 634,699,330.97 | 89.25 | 751,095,352.31 | 89.01 |
| Morethan1yearbutnotexceeding2years(inclusive) | 41,647,226.45 | 5.86 | 58,151,929.86 | 6.89 |
| Morethan2yearsbutnotexceeding3years(inclusive) | 9,263,026.05 | 1.30 | 8,515,047.38 | 1.01 |
| Morethan3years | 25,507,382.08 | 3.59 | 26,058,108.96 | 3.09 |
| Total | 711,116,965.55 | 100.00 | 843,820,438.51 | 100.00 |
(2)Significantaccountspayableagedmorethanoneyear
| Item | Amount | Aging | Reasonforoutstanding |
| ShenzhenMunicipalBureauofLandandResources | 21,642,795.50 | Morethan3years | Thegovernmentplanningprojecthasnotbeencompleted,andthecertificatesofpropertyrightshasnotbeenprocessed. |
29.Receiptsinadvance
| Item | Closingbalance | Openingbalance |
| Rentalfeereceivedinadvance | 16,549,365.00 | 6,724,007.73 |
| Administrativefeereceivedinadvance | 3,216,243.41 | 2,163,886.70 |
| Others | 7,340,148.48 | 425,271.58 |
| Total | 27,105,756.89 | 9,313,166.01 |
(1)Aginganalysisofreceiptsinadvance
| Aging | Closingbalance | Openingbalance | ||
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within1year(inclusive) | 27,090,006.89 | 99.94 | 9,283,472.35 | 99.68 |
| Morethan1yearbutnotexceeding2years(inclusive) | - | - | 13,943.66 | 0.15 |
| Morethan2yearsbutnotexceeding3years(inclusive) | - | - | - | - |
| Morethan3years | 15,750.00 | 0.06 | 15,750.00 | 0.17 |
| Total | 27,105,756.89 | 100.00 | 9,313,166.01 | 100.00 |
(2)Thereisnosignificantreceiptsinadvanceagedmorethanoneyearat30June2022.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
30.Contractliabilities
(1)Summaryofcontractliabilities
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Servicefeereceivedinadvance | 124,781,626.22 | 47,772,567.97 |
| Portchargesreceivedinadvance | 67,974,723.73 | 122,718,356.71 |
| Warehousingfeereceivedinadvance | 13,536,530.43 | 15,698,102.34 |
| Others | 19,058,094.47 | 10,595,498.24 |
| Total | 225,350,974.85 | 196,784,525.26 |
| Less:Contractliabilitiesrecognisedinothernon-currentliabilities | - | - |
| Bookvalue | 225,350,974.85 | 196,784,525.26 |
(2)Amountsofsignificantmovementsincarryingamountofcontractliabilitiesfortheyear
andreasonsthereof:
| Item | Movements | Reason |
| Servicefeereceivedinadvance | 77,009,058.25 | Fulfilmentofperformanceobligations |
| Portchargesreceivedinadvance | -54,743,632.98 | Fulfilmentofperformanceobligations |
| Total | 22,265,425.27 |
(3)Thereisnosignificantcontractliabilitiesagedmorethanoneyearat30June2022.
(4)Qualitativeandquantitativeanalysisofcontractliabilities
ThecontractliabilitymainlyrepresentstheamountreceivedbytheGrouptoprovideportservicestocustomers.Thepaymentiscollectedaccordingtothecontractualpaymenttime.TheGrouprecognizescontractrevenuebasedontheprogressofthecontract.ThecontractliabilitieswillberecognizedasincomeaftertheGroupfulfillsitsperformanceobligations.
(5)Revenuerecognizedinthecurrentperiodandincludedintheopeningcarryingamountof
contractliabilitiesAnamountofRMB140,975,657.34includedinthebookvalueofcontractliabilitiesatthebeginningoftheperiodhasbeenrecognizedasrevenueinthecurrentyear,includingcontractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromthecontractofreceiptofportchargesinadvanceamountingtoRMB119,807,526.78,contractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromthecontractofreceiptofservicefeeinadvanceamountingtoRMB12,165,227.34,contractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromthecontractofreceiptofwarehousingfeeinadvanceamountingtoRMB6,693,697.67aswellascontractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromothercontractsamountingtoRMB2,309,205.55.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
31.Employeebenefitspayable
(1)Detailsofemployeebenefitspayableareasfollows
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| 1.Short-termbenefits | 808,913,314.49 | 1,646,317,477.64 | 1,710,267,801.10 | 744,962,991.03 |
| 2.Post-employmentbenefits-definedcontributionplan | 6,125,899.58 | 175,269,255.93 | 172,598,125.01 | 8,797,030.50 |
| 3.Terminationbenefits | 5,900,000.00 | 4,367,856.76 | 6,963,585.38 | 3,304,271.38 |
| 4.Otherbenefitsduewithinoneyear | - | 1,610,139.31 | 1,610,139.31 | - |
| 5.Others | -522,798.60 | 2,097,499.84 | 2,049,426.48 | -474,725.24 |
| Total | 820,416,415.47 | 1,829,662,229.48 | 1,893,489,077.28 | 756,589,567.67 |
(2)Short-termbenefits
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| I.Wagesandsalaries,bonuses,allowancesandsubsidies | 783,600,775.04 | 1,361,312,365.51 | 1,429,114,909.30 | 715,798,231.25 |
| II.Staffwelfare | - | 65,824,626.77 | 61,768,820.07 | 4,055,806.70 |
| III.Socialinsurancecharges | 9,058,171.24 | 89,872,103.65 | 89,200,780.73 | 9,729,494.16 |
| Including:Medicalinsurance | 7,678,856.08 | 76,377,973.19 | 75,913,162.66 | 8,143,666.61 |
| Workinjuryinsurance | 47,248.95 | 7,926,243.98 | 7,925,902.68 | 47,590.25 |
| Others | 1,332,066.21 | 5,567,886.48 | 5,361,715.39 | 1,538,237.30 |
| IV.Housingfunds | -74,747.24 | 93,795,256.89 | 93,563,731.80 | 156,777.85 |
| V.Laborunionandemployeeeducationfunds | 16,412,863.40 | 22,029,732.67 | 23,705,082.98 | 14,737,513.09 |
| VI.Othershort-termbenefits | -83,747.95 | 13,483,392.15 | 12,914,476.22 | 485,167.98 |
| Total | 808,913,314.49 | 1,646,317,477.64 | 1,710,267,801.10 | 744,962,991.03 |
(3)Definedbenefitplans
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| I.Basicpension | 5,795,491.40 | 134,348,034.87 | 133,040,828.75 | 7,102,697.52 |
| II.Unemploymentinsurance | 43,200.24 | 1,998,546.14 | 2,002,209.76 | 39,536.62 |
| III.Enterpriseannuityplan | 287,207.94 | 38,922,674.92 | 37,555,086.50 | 1,654,796.36 |
| Total | 6,125,899.58 | 175,269,255.93 | 172,598,125.01 | 8,797,030.50 |
TheCompanyanditssubsidiariesparticipatesinthesocialsecuritycontributionsandtheunemploymentinsuranceplanestablishedbygovernmentinstitutionsasrequired.Accordingtosuchplans,theGroupcontributesinproportiontothelocalgovernment.Exceptfortheabove-mentioneddepositfees,theGrouphavenooutstandingcontributionstobepaidtothesocialsecuritycontributionsandtheunemploymentinsuranceplan.Thecorrespondingexpensesareincludedinthecurrentprofitandlossorthecostofrelatedassetswhenincurred.
-100-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
32.Taxespayable
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Enterpriseincometax | 1,022,922,220.91 | 2,098,884,089.24 |
| VAT | 28,553,676.79 | 19,025,631.30 |
| Others | 92,015,700.53 | 44,809,531.14 |
| Total | 1,143,491,598.23 | 2,162,719,251.68 |
33.Otherpayables
(1)Summaryofotherpayables
| Item | Closingbalance | Openingbalance |
| Dividendspayable | 1,842,431,566.85 | 48,803,019.31 |
| Otherpayables | 1,642,654,215.34 | 2,091,305,321.77 |
| Total | 3,485,085,782.19 | 2,140,108,341.08 |
(2)Dividendspayable
| Item | Closingbalance | Openingbalance |
| Ordinarysharedividends | 1,842,431,566.85 | 48,803,019.31 |
| Including:Externalentities(Note) | 829,505,285.46 | 28,803,019.31 |
| CHINAMERCHANTSUNION(BVI)LIMITED | 510,276,268.24 | - |
| JingmaoGuandeDevelopmentCo.,Ltd. | 147,480,014.09 | - |
| NingboZhoushan | 100,465,755.99 | - |
| ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd. | 99,560,234.06 | - |
| HongKongInternationalEnterprisesCo.,Ltd. | 77,735,005.59 | - |
| CiticPortInvestCo.,Ltd. | 57,409,003.42 | - |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.(Note) | 20,000,000.00 | 20,000,000.00 |
Note:Asat30June2022,thedividendspayableoveroneyearincludeRMB20,000,000.00due
toChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.,RMB12,160,517.31duetoDalianPortContainerDevelopmentCo.,Ltd.(hereinafterreferredtoas"DalianPortContainer"),RMB3,972,477.39duetoDalianPortJifaLogisticsCo.,Ltd.,whicharedividendsnotyetreceivedbytheinvestors.
(3)Otherpayables(a)Disclosureofotherpayablesbynature
| Item | Closingbalance | Openingbalance |
| Amountpayableforconstructionandqualitywarranty | 588,429,555.63 | 821,093,777.44 |
| Deposits | 194,712,014.30 | 446,198,541.16 |
| Customerdiscount(Note) | 216,471,669.77 | 102,393,978.35 |
| Accruedexpenses | 99,371,673.74 | 198,863,463.79 |
| Portconstructionandsecurityfee | 58,680,124.37 | 59,026,576.51 |
| Balanceoflanduserightstransfer | 11,295,700.00 | 11,295,700.00 |
| Others | 473,693,477.53 | 452,433,284.52 |
| Total | 1,642,654,215.34 | 2,091,305,321.77 |
Note:RefertoNote(VIII)50(3)fordetails.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
33.Otherpayables-continued
(3)Otherpayables-continued(b)Significantotherpayableswithagingover1year
CHINAMERCHANTSPORTGROUPCO.,LTD.
Companyname
| Companyname | Closingbalance | Aging | Reasonforbeingoutstandingorcarriedforward |
| TheSecondEngineeringCompanyofCCCCFourthHarborEngineeringCo.,Ltd. | 85,015,164.93 | Morethan1yearbutnotexceeding2years | Tobepaiduponconfirmationbybothparties |
| ShenzhenTransportationCommission | 79,639,296.08 | Morethan2yearsbutnotexceeding3years;Morethan3years | Tobepaiduponconfirmationbybothparties |
| ZhenhuaPortMachineryCompanyLimited | 34,239,544.52 | Morethan3years | Tobepaiduponconfirmationbybothparties |
| ShantouMunicipalTransportBureau | 31,358,355.47 | Morethan3years | Tobepaiduponconfirmationbybothparties |
| ZhanjiangMunicipalTransportBureau | 30,958,309.85 | Morethan1yearbutnotexceeding2years;Morethan2yearsbutnotexceeding3years | Tobepaiduponconfirmationbybothparties |
| GuangdongJiayeReserveLogisticsCo.,Ltd. | 25,000,000.00 | Morethan2yearsbutnotexceeding3years | Contractualsettlementconditionshavenotbeenmet |
| QingdaoMaritimeSafetyAdministration | 20,713,982.12 | Morethan3years | Tobepaiduponconfirmationbybothparties |
| ChinaFirstMetallurgicalGroupCo.,Ltd. | 16,798,178.60 | Morethan1yearbutnotexceeding2years;Morethan2yearsbutnotexceeding3years;Morethan3years | Contractualsettlementconditionshavenotbeenmet |
| Total | 323,722,831.57 |
34.Non-currentliabilitiesduewithinoneyear
| Item | Closingbalance | Openingbalance |
| Long-termloansduewithinoneyear(NoteVIII36) | 1,323,805,705.97 | 1,187,781,073.61 |
| Including:Creditloan | 460,874,553.85 | 399,437,084.19 |
| Guaranteedloan | 187,292,141.51 | 158,812,554.95 |
| Mortgageandpledgedloan | 675,639,010.61 | 629,531,434.47 |
| Bondspayableduewithinoneyear(NoteVIII37) | 883,327,840.24 | 6,554,177,357.66 |
| Leaseliabilitiesduewithinoneyear(NoteVIII38) | 374,351,389.39 | 298,117,295.41 |
| Long-termpayableduewithinoneyear(NoteVIII39) | 144,065,314.37 | 139,696,643.49 |
| Long-termemployeebenefitspayableduewithinoneyear(NoteVIII40) | 64,306,914.00 | 64,306,914.00 |
| Othernon-currentliabilitiesduewithinoneyear(NoteVIII43) | 24,130,000.00 | 24,130,000.00 |
| Total | 2,813,987,163.97 | 8,268,209,284.17 |
35.Othercurrentliabilities
| Item | Closingbalance | Openingbalance |
| Short-termbondspayable | 5,019,617,260.31 | 2,002,416,438.36 |
| Accruedprofessionalagencyfee | 125,096,529.17 | 128,664,439.94 |
| Others | 18,861,958.58 | 27,416,897.55 |
| Total | 5,163,575,748.06 | 2,158,497,775.85 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
35.Othercurrentliabilities-continuedChangesofshort-termbondspayable:
CHINAMERCHANTSPORTGROUPCO.,LTD.
Nameofbond
| Nameofbond | Facevalue | Dateofissue | Termofthebond | Amountofissue | Openingbalance | Amountissuedinthecurrentperiod | Interestaccruedbasedonparvalue | Discountorpremiumamortization | Repaymentinthecurrentperiod | Closingbalance |
| 2.45%RMB2billionSuper&Short-termCommercialPaper | 2,000,000,000.00 | 2021-12-13 | 90days | 2,000,000,000.00 | 2,002,416,438.36 | - | 9,665,753.42 | - | 2,012,082,191.78 | - |
| 2.32%RMB2billionSuper&Short-termCommercialPaper | 2,000,000,000.00 | 2022-1-17 | 90days | 2,000,000,000.00 | - | 2,000,000,000.00 | 11,383,890.41 | - | 2,011,383,890.41 | - |
| 2.15%RMB1billionSuper&Short-termCommercialPaper | 1,000,000,000.00 | 2022-3-2 | 180days | 1,000,000,000.00 | - | 1,000,000,000.00 | 7,009,589.05 | - | - | 1,007,009,589.05 |
| 2.13%RMB2billionSuper&Short-termCommercialPaper | 2,000,000,000.00 | 2022-3-28 | 180days | 2,000,000,000.00 | - | 2,000,000,000.00 | 10,854,246.59 | - | - | 2,010,854,246.59 |
| 2.00%RMB2billionSuper&Short-termCommercialPaper | 2,000,000,000.00 | 2022-6-14 | 180days | 2,000,000,000.00 | - | 2,000,000,000.00 | 1,753,424.67 | - | - | 2,001,753,424.67 |
| Total | 9,000,000,000.00 | 9,000,000,000.00 | 2,002,416,438.36 | 7,000,000,000.00 | 40,666,904.14 | - | 4,023,466,082.19 | 5,019,617,260.31 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
36.Long-termborrowings
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Closingbalance | Openingbalance | Rangeofyear-endinterestrate(%) |
| Creditborrowings | 6,263,701,606.06 | 5,366,543,524.76 | 1.20%-4.80% |
| Guaranteedborrowings(Note1) | 982,862,131.51 | 1,076,679,935.08 | 1.20%-14.40% |
| Mortgageborrowings(Note2) | 1,654,283,225.04 | 1,889,397,484.66 | 3.41%-4.65% |
| Total | 8,900,846,962.61 | 8,332,620,944.50 | 1.20%-14.40% |
| Less:Long-termborrowingsduewithinoneyear | 1,323,805,705.97 | 1,187,781,073.61 | —— |
| Including:Creditborrowings | 460,874,553.85 | 399,437,084.19 | —— |
| Guaranteedborrowings | 187,292,141.51 | 158,812,554.95 | —— |
| Mortgageborrowings | 675,639,010.61 | 629,531,434.47 | —— |
| Long-termborrowingsdueafteroneyear | 7,577,041,256.64 | 7,144,839,870.89 | —— |
Note1:TheloanwasguaranteedbyShenzhenMagangCangmaCo.,Ltd,ChinaMerchantsPort
Services(Shenzhen)Co.,Ltd,CMPortandGuangdongZhanjiangPortLogisticsCo.,Ltd.Note2:Asat30June2022,theGroupobtainedthelong-termloanofRMB1,654,283,225.04(31
December2021:RMB1,889,397,484.66)withitsentireequityinColomboInternationalContainerTerminalsLimited(hereinafterreferredtoas"CICT")andThesarMaritimeLimited(hereinafterreferredtoas"TML"),andthelanduseright,fixedassetsandconstructioninprogressheldbyGuangdongYidePortCo.,Ltd.(hereinafterreferredtoas"YidePort"),thelanduserightofShenzhenHaixingHarborDevelopmentCo.,Ltd.(hereinafterreferredtoas"ShenzhenHaixing"),aswellasthelandwithpropertyrightandfixedassetsofChinaMerchantsPort(Zhoushan)RoRoTerminalCo.,Ltd.(hereinafterreferredtoas"ZhoushanRoRoTerminal"),mortgagedascollaterals.Detailsofmortgageandpledgedborrowingsareasfollows:
| Companyname | Closingbalance | Openingbalance | Mortgagesandpledges |
| ChinaDevelopmentBankCorporation | 632,008,053.04 | 747,186,761.93 | TheGroup'sentireequityinCICT |
| InternationalFinanceCorporation | 171,866,042.04 | 230,966,536.60 | TheGroup'sentireequityinTML |
| AfricanDevelopmentBank | 78,914,741.50 | 106,074,913.93 | |
| NederlandseFinancierings-MaatschappijvoorOntwikkelingslandenN.V. | 65,027,311.28 | 87,410,830.23 | |
| TheOpecFundForInternationalDevelopment | 55,704,747.06 | 74,876,376.58 | |
| SocietedePromotionetdeParticipationpourlaCooperationEconomiqueS.A. | 55,743,903.11 | 74,932,105.74 | |
| DeutscheInvestitions-undEntwicklungsgesellschaftMBH | 46,420,373.79 | 62,397,008.21 | |
| BankofChinaQianhaiShekouBranch | 284,443,029.75 | 241,370,822.03 | LanduserightsofShenzhenHaixing(seeNote(VIII)62) |
| ChinaConstructionBankShundeBranch | 254,144,329.03 | 264,182,129.41 | Landuserights,fixedassetsandconstructioninprogressofYidePort(seeNote(VIII)62) |
| ChinaMingshengBankZhoushanBranch | 10,010,694.44 | - | LanduserightsandfixedassetsofZhoushanRoRoTerminal(seeNote(VIII)62) |
| Total | 1,654,283,225.04 | 1,889,397,484.66 |
Note:SeeNote(VIII)62fortheabovemortgagesandpledges.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
37.Bondspayable
(1)Bondspayable
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| 4.375%,USD900millioncorporatebond | 6,109,537,705.29 | 5,814,296,318.30 |
| 5.000%,USD600millioncorporatebond | 4,054,499,710.36 | 3,859,622,116.07 |
| 4.750%,USD500millioncorporatebond | 3,398,249,302.86 | 3,236,350,690.37 |
| 4.000%,USD500millioncorporatebond | 3,340,477,474.45 | - |
| 3.360%,RMB2billioncorporatebond | 2,065,911,232.87 | 2,032,587,397.26 |
| 3.520%,RMB2billioncorporatebond | 2,014,658,630.13 | 2,050,147,945.19 |
| IPCA+7.8164%,BRL300millioncorporatebond | 542,021,815.00 | 438,789,671.67 |
| 5.000%,USD500millioncorporatebond | - | 3,207,848,098.69 |
| 4.890%,RMB2.5billioncorporatebond | - | 2,585,407,534.25 |
| Total | 21,525,355,870.96 | 23,225,049,771.80 |
| Less:Bondspayableduewithinoneyear | 883,327,840.24 | 6,554,177,357.66 |
| Bondspayabledueafteroneyear | 20,642,028,030.72 | 16,670,872,414.14 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
37.Bondspayable-continued
(2)Changesofbondspayable
CHINAMERCHANTSPORTGROUPCO.,LTD.
Nameofbond
| Nameofbond | Facevalue | Dateofissue | Termofthebond | Amountofissue | Openingbalance | Amountissuedinthecurrentperiod | Interestaccruedbasedonparvalue | Discountorpremiumamortization | Repaymentinthecurrentperiod | Effectofchangesinforeignexchange | Closingbalance |
| 4.375%,USD900millioncorporatebond | USD900,000,000.00 | 2018-08-06 | 5years | USD900,000,000.00 | 5,814,296,318.30 | - | 126,955,531.54 | 5,246,925.41 | 126,877,175.97 | 289,916,106.01 | 6,109,537,705.29 |
| 5.000%,USD600millioncorporatebond | USD600,000,000.00 | 2018-08-06 | 10years | USD600,000,000.00 | 3,859,622,116.07 | - | 96,728,024.18 | 2,450,902.72 | 96,668,324.55 | 192,366,991.94 | 4,054,499,710.36 |
| 4.750%,USD500millioncorporatebond | USD500,000,000.00 | 2015-08-03 | 10years | USD500,000,000.00 | 3,236,350,690.37 | - | 76,102,335.31 | 1,151,511.22 | 76,924,213.56 | 161,568,979.52 | 3,398,249,302.86 |
| 4.000%,USD500millioncorporatebond | USD500,000,000.00 | 2022-06-01 | 5years | USD500,000,000.00 | - | 3,351,484,939.46 | 10,679,778.85 | 187,869.09 | - | -21,875,112.95 | 3,340,477,474.45 |
| 3.360%,RMB2billioncorporatebond | RMB2,000,000,000.00 | 2020-07-07 | 3years | RMB2,000,000,000.00 | 2,032,587,397.26 | - | 65,911,232.87 | - | 32,587,397.26 | - | 2,065,911,232.87 |
| 3.520%,RMB2billioncorporatebond | RMB2,000,000,000.00 | 2021-04-14 | 3years | RMB2,000,000,000.00 | 2,050,147,945.19 | - | 14,658,630.13 | - | 50,147,945.19 | - | 2,014,658,630.13 |
| IPCA+7.8164%,BRL300millioncorporatebond | BRL299,632,900.00 | 2016-11-07 | 6years | BRL299,632,900.00 | 438,789,671.67 | - | 45,618,109.23 | 4,025,800.12 | - | 53,588,233.98 | 542,021,815.00 |
| 5.000%,USD500millioncorporatebond | USD500,000,000.00 | 2012-05-04 | 10years | USD500,000,000.00 | 3,207,848,098.69 | - | 53,981,908.57 | 2,287,423.20 | 3,328,702,116.38 | 64,584,685.92 | - |
| 4.890%,RMB2.5billioncorporatebond | RMB2,500,000,000.00 | 2017-04-21 | 5years | RMB2,500,000,000.00 | 2,585,407,534.25 | - | 36,842,465.75 | - | 2,622,250,000.00 | - | - |
| Total | 23,225,049,771.80 | 3,351,484,939.46 | 527,478,016.43 | 15,350,431.76 | 6,334,157,172.91 | 740,149,884.42 | 21,525,355,870.96 | ||||
| Less:Bondspayableduewithinoneyear | 6,554,177,357.66 | - | - | - | - | - | 883,327,840.24 | ||||
| Bondspayabledueafteroneyear | 16,670,872,414.14 | - | - | - | - | - | 20,642,028,030.72 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
38.Leaseliabilities
(1)Leaseliabilities
CHINAMERCHANTSPORTGROUPCO.,LTD.Category
| Category | Closingbalance | Openingbalance |
| Leasepayment | 2,169,995,959.09 | 2,060,643,997.13 |
| Unrecognizedfinancingcost | -735,464,192.26 | -707,331,795.63 |
| Total | 1,434,531,766.83 | 1,353,312,201.50 |
| Less:Leaseliabilitiesduewithinoneyear | 374,351,389.39 | 298,117,295.41 |
| Leaseliabilitiesdueafteroneyear | 1,060,180,377.44 | 1,055,194,906.09 |
(2)Maturityofleaseliabilities
| Item | Closingbalance |
| Minimumleasepaymentsundernon-cancellableleases: | |
| 1styearsubsequenttothebalancesheetdate | 439,406,737.60 |
| 2ndyearsubsequenttothebalancesheetdate | 325,037,704.15 |
| 3rdyearsubsequenttothebalancesheetdate | 78,604,527.55 |
| Subsequentperiods | 1,326,946,989.79 |
| Total | 2,169,995,959.09 |
TheGroupisnotexposedtoanysignificantliquidityriskassociatedwithleaseliabilities.
39.Long-termpayables
(1)Summaryoflong-termpayables
| Item | Closingbalance | Openingbalance |
| Long-termpayables | 3,795,229,899.97 | 3,540,616,228.99 |
| Specialpayables | 18,004,727.43 | 21,259,780.90 |
| Total | 3,813,234,627.40 | 3,561,876,009.89 |
| Less:Long-termpayablesduewithinoneyear | 144,065,314.37 | 139,696,643.49 |
| Long-termpayablesdueafteroneyear | 3,669,169,313.03 | 3,422,179,366.40 |
(2)Long-termpayables
| Item | Closingbalance | Openingbalance |
| Terminalmanagementrights(Note1) | 3,530,551,003.02 | 3,125,647,576.58 |
| Payabletominorityshareholdersofsubsidiaries(Note2) | 213,540,487.14 | 411,858,969.58 |
| Others | 51,138,409.81 | 3,109,682.83 |
| Total | 3,795,229,899.97 | 3,540,616,228.99 |
| Less:Long-termpayablesduewithinoneyear | 144,065,314.37 | 139,696,643.49 |
| Long-termpayablesdueafteroneyear | 3,651,164,585.60 | 3,400,919,585.50 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
39.Long-termpayables-continued
(2)Long-termpayables–continuedNote1:Asat12August2011,theGroupreacheda35-yearagreementofbuilding,operationand
transferwithSriLankaPortAuthoritythroughasubsidiaryCICT,onthebuilding,operation,managementanddevelopmentoftheColomboPortSouthContainerTerminal(hereinafterreferredtoasfor"BOT").Thepurchaseamountofabove-mentionedterminaloperatingrightsisdeterminedbydiscountingtheamounttobepaidinthefutureusingtheprevailingmarketinterestrateaccordingtotheBOTagreement.Asof30June2022,theamountpayableforthepurchaseofterminaloperationrightsisRMB822,335,311.18.TCP,asubsidiaryoftheCompanyenteredintoafranchiseagreementonthePortofParanaguáwiththeAdministrationofthePortsofParanaguáandAntonina-APPA(hereinafterreferredtothe"APPA").Theagreementprovidesforaninitialtermof25yearsfortheconcessions.InApril2016,TCPandAPPAenteredintotheSupplementalAgreement,whichextendstheperiodto50yearsandwillbeexpiredinOctober2048.On9September2021,TCP,asubsidiaryoftheCompany,enteredintoasupplementalagreementtotheLeaseAgreementwithAPPAfortheconcessionsofthePortsofParanaguáandAntonina.Pursuanttowhich,thebasefigureforthecalculationofroyaltiesforthePortsofParanaguáandAntoninawasadjustedfromtheBrazilIGP-MInflationIndex("IGP-Mindex")totheExtendedNationalConsumerPriceIndex("IPCAindex")oftheBrazilianInstituteofGeographyandStatistics("IBGE").InNovember2021,TCPreadjustedtheroyaltiesusingtheIPCAindex.Asat30June2022,theamountofroyaltypayablewasRMB2,708,215,691.84.Note2:ItisanunsecuredloanfromminorityshareholderofThesarMaritimeLimited,a
subsidiaryoftheCompany,withanannualinterestrateof4.65%.
(3)Specialpayables
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance | Reason |
| Refundsofharborconstructionfee | 12,675,502.52 | - | 3,411,635.36 | 9,263,867.16 | Note1 |
| Employeehousingfund | 4,686,678.97 | 244,274.89 | 50.00 | 4,930,903.86 | Note2 |
| Modelworkerinnovationstudio | 3,897,599.41 | - | 87,643.00 | 3,809,956.41 | |
| Total | 21,259,780.90 | 244,274.89 | 3,499,328.36 | 18,004,727.43 |
Note1:ThisrepresentstherefundoftheconstructionfeereceivedbytheGroupfromtheMinistry
ofTransport,ShenzhenMunicipalTransportationBureau.Accordingtothe"PortConstructionFeeManagementMeasures"promulgatedbytheMinistryofFinance,thispaymentisdedicatedtotheconstructionofwatertransportinfrastructure.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
39.Long-termpayables-continued
(3)Specialpayables-continuedNote2:Thisrepresenttherepairingfundforpublicareasandpublicfacilitiesandequipment
establishedaftertheGroup'ssellingthepublic-ownedhouseonthecollectivelyallocatedlandtoemployees.Thefundiscontributedbyalltheemployeeshavingownershipofthehouseaccordingtotherules,andisspeciallymanagedandusedforspecificpurpose.
40.Long-termemployeebenefitspayable
(1)Long-termemployeebenefitspayable
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Post-employmentbenefits-netliabilitiesofdefinedbenefitsplan | 459,842,939.67 | 463,858,274.44 |
| Terminationbenefits | 67,348,606.72 | 71,467,335.47 |
| Others(Note) | 98,901,244.28 | 117,662,796.72 |
| Total | 626,092,790.67 | 652,988,406.63 |
| Less:Long-termemployeebenefitspayableduewithinoneyear | 64,306,914.00 | 64,306,914.00 |
| Long-termemployeebenefitspayabledueafteroneyear | 561,785,876.67 | 588,681,492.63 |
Note:ItistheemployeeresettlementcostrelatedtolandacquisitionandreserveofShantouPort,
asubsidiaryoftheCompany.
(2)ChangesofdefinedbenefitsplanPresentvalueofdefinedbenefitsplanobligation:
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod |
| I.Openingbalance | 463,858,274.44 | 429,830,989.42 |
| II.Definedbenefitscostincludedinprofitorlossfortheperiod | 10,819,999.96 | 12,698,930.72 |
| 1.Currentservicecost | 3,684,999.98 | 4,933,930.72 |
| 2.Pastservicecost | - | - |
| 3.Interestadjustment | 7,134,999.98 | 7,765,000.00 |
| III.Definedbenefitscostincludedinothercomprehensiveincome | -4,486.41 | -200,890.65 |
| 1.Actuarialgains(losses) | - | - |
| 2.Effectofexchangeratechanges | -4,486.41 | -200,890.65 |
| IV.Otherchanges | -14,830,848.32 | -14,847,531.25 |
| 1.Benefitspaid | -14,830,848.32 | -14,847,531.25 |
| V.Closingbalance | 459,842,939.67 | 427,481,498.24 |
TheCompany'ssubsidiariesprovidetheregisteredretireesandin-servicestaffwithsupplementarypost-employmentbenefitplans.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
40.Long-termemployeebenefitspayable-continued
(2)Changesofdefinedbenefitsplan-continuedTheGrouphiredathird-partyactuarytoestimatethepresentvalueofitsabove-mentionedretirementbenefitplanobligationsinanactuarialmannerbasedontheexpectedcumulativewelfareunitmethod.TheGrouprecognizestheGroup'sliabilitiesbasedontheactuarialresults.Therelevantactuarialgainsorlossesareincludedinothercomprehensiveincomeandcannotbereclassifiedintoprofitorlossinthefuture.Pastservicecostsarerecognizedinprofitorlossfortheperiodinwhichtheplanisrevised.Thenetinterestisdeterminedbymultiplyingthedefinedbenefitplannetdebtornetassetsbytheappropriatediscountrate.
41.Provisions
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Openingbalance | Increasefortheyear | Decreasefortheyear | Effectofchangesinforeignexchange | Closingbalance | Reason |
| Pendinglitigation | 23,243,718.18 | 5,688,122.16 | - | 2,532,397.82 | 31,464,238.16 | Note |
| Other | 1,003,584.24 | - | 1,003,584.24 | - | - | |
| Total | 24,247,302.42 | 5,688,122.16 | 1,003,584.24 | 2,532,397.82 | 31,464,238.16 |
Note:ThisrepresentstheestimatedcompensationamountthattheCompany'ssubsidiaryTCP
mayneedtopayduetothependinglitigation.
42.Deferredincome
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| Governmentgrants | 1,075,566,122.15 | 418,200.00 | 22,802,653.80 | 1,053,181,668.35 |
| Unrealizedsale-and-leasebackincome | 391,762.76 | - | 259,468.68 | 132,294.08 |
| Total | 1,075,957,884.91 | 418,200.00 | 23,062,122.48 | 1,053,313,962.43 |
Itemsinvolvinggovernmentgrantsareasfollows:
| Liabilities | Openingbalance | Increase | RecognizedinOthercomprehensiveincome | Closingbalance | Relatedtoassets/relatedtoincome |
| Refundfrommarinereclamationland | 336,471,484.55 | - | 9,674,583.96 | 326,796,900.59 | Relatedtoassets |
| Tongguchannelwideningproject(Note) | 262,314,289.68 | - | 3,599,086.76 | 258,715,202.92 | Relatedtoassets |
| Specialsubsidyforfacilitiesandequipment | 233,339,756.18 | - | 4,730,463.54 | 228,609,292.64 | Relatedtoassets |
| Westernportareawesternpublicchannelwideningproject(Note) | 208,661,435.58 | - | 2,719,858.14 | 205,941,577.44 | Relatedtoassets |
| Governmentsubsidiesforintelligentsystem | 13,471,673.46 | 418,200.00 | 1,293,489.54 | 12,596,383.92 | Relatedtoassets |
| Refundoflandtransfercharges | 6,301,466.61 | - | 133,600.02 | 6,167,866.59 | Relatedtoassets |
| Greenlowcarbonportproject | 140,390.02 | - | 140,390.02 | - | Relatedtoassets |
| Others | 14,865,626.07 | - | 511,181.82 | 14,354,444.25 | Relatedtoassets |
| Total | 1,075,566,122.15 | 418,200.00 | 22,802,653.80 | 1,053,181,668.35 |
Note:RefertoNote(VIII)23fordetails.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
43.Othernon-currentliabilities
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| ActuarialexpensesforpensiontreatmentofstaffinPublicSecurityBureau(Note1) | 179,619,999.98 | 176,939,999.96 |
| Berthprioritycallright(Note2) | 7,037,835.97 | 9,595,454.89 |
| Others | 1,121,355.99 | 660,123.68 |
| Total | 187,779,191.94 | 187,195,578.53 |
| Less:Othernon-currentliabilitiesduewithinoneyear | 24,130,000.00 | 24,130,000.00 |
| Including:ActuarialexpensesforpensiontreatmentofstaffinPublicSecurityBureau(Note1) | 24,130,000.00 | 24,130,000.00 |
| Othernon-currentliabilitiesdueafteroneyear | 163,649,191.94 | 163,065,578.53 |
Note1:ZhanjiangPort,asubsidiaryoftheCompany,transferredthepolicestationofZhanjiang
PorttothePeople'sGovernmentofZhanjianginaccordancewiththeNoticeofIssuingtheDeepeningReformPlanfortheManagementSystemofGotownPublicSecurity(StateCommissionOfficeofPublicSectorsReform[2017]No.327)andtheNoticeofIssuingtheReformImplementationPlanfortheManagementSystemofGotownPublicSecurity(YueJiBianBanFa[2018]No.221).PolicemenonthepayrolloftheoriginalZhanjiangPortPoliceStationwillbetransitionedtobecivilservantspernationalregulations,retiredpolicemenwillbeincludedinthescopeofpensioninsuranceofZhanjiangovernmentdepartmentsandpublicinstitutions,wherethedifferenceofpensionbenefitsbetweentheoriginalstandardandthestandardforpolicemenofZhanjiangCity(hereinafterreferredtoas"differenceofpensionbenefits")willbebornebyZhanjiangPort.Thus,ZhanjiangPortmadeaprovisionofRMB179,619,999.98fortherelatedliability.Note2:Thisrepresentstheberthprioritycallrightasagreedinthecontractenteredintowiththe
clientsin2003,withtotalamountofUSD14million.TheGroupmustgiveprioritytotheberthingrequirementsofthecontractedcustomersduringthecontractperiod.TheGroupamortizedtheberthpriorityrightwithin20yearsusingstraight-linemethod.Fortheperiodfrom1Januaryto30June2022,theamountincludedinoperatingincomewasRMB2,557,618.92.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
44.Sharecapital
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Openingbalance | Changesfortheperiod | Closingbalance | ||||
| Newissueofshare | Bonusissue | Capitalizationofsurplusreserve | Others | Sub-total | |||
| Fortheperiodfrom1Januaryto30June2022 | |||||||
| I.Restrictedtradableshares | |||||||
| 1.State-ownedshares | - | - | - | - | - | - | - |
| 2.State-ownedlegalpersonshares | - | - | - | - | - | - | - |
| 3.Otherdomesticshares | 9,821.00 | - | - | - | -2,455.00 | -2,455.00 | 7,366.00 |
| 4.Foreignshares | 1,148,648,648.00 | - | - | - | - | - | 1,148,648,648.00 |
| Totalrestrictedtradableshares | 1,148,658,469.00 | - | - | - | -2,455.00 | -2,455.00 | 1,148,656,014.00 |
| II.Non-restrictedtradableshares | |||||||
| 1.OrdinarysharesdenominatedinRMB | 593,820,070.00 | - | - | - | 325.00 | 325.00 | 593,820,395.00 |
| 2.Foreigncapitalshareslisteddomestically | 179,886,585.00 | - | - | - | 2,130.00 | 2,130.00 | 179,888,715.00 |
| 3.Foreigncapitalshareslistedoverseas | - | - | - | - | - | - | - |
| 4.Others | - | - | - | - | - | - | - |
| Totalnon-restrictedtradableshares | 773,706,655.00 | - | - | - | 2,455.00 | 2,455.00 | 773,709,110.00 |
| III.Totalshares | 1,922,365,124.00 | - | - | - | - | - | 1,922,365,124.00 |
Item
| Item | Openingbalance | Changesfortheperiod | Closingbalance | ||||
| Newissueofshare | Bonusissue | Capitalizationofsurplusreserve | Others | Sub-total | |||
| Fortheyearended31December2021 | |||||||
| I.Restrictedtradableshares | |||||||
| 1.State-ownedshares | - | - | - | - | - | - | - |
| 2.State-ownedlegalpersonshares | - | - | - | - | - | - | - |
| 3.Otherdomesticshares | 9,496.00 | - | - | - | 325.00 | 325.00 | 9,821.00 |
| 4.Foreignshares | 1,148,648,648.00 | - | - | - | - | - | 1,148,648,648.00 |
| Totalrestrictedtradableshares | 1,148,658,144.00 | - | - | - | 325.00 | 325.00 | 1,148,658,469.00 |
| II.Non-restrictedtradableshares | |||||||
| 1.OrdinarysharesdenominatedinRMB | 593,820,070.00 | - | - | - | - | - | 593,820,070.00 |
| 2.Foreigncapitalshareslisteddomestically | 179,886,910.00 | - | - | - | -325.00 | -325.00 | 179,886,585.00 |
| 3.Foreigncapitalshareslistedoverseas | - | - | - | - | - | - | - |
| 4.Others | - | - | - | - | - | - | - |
| Totalnon-restrictedtradableshares | 773,706,980.00 | - | - | - | -325.00 | -325.00 | 773,706,655.00 |
| III.Totalshares | 1,922,365,124.00 | - | - | - | - | - | 1,922,365,124.00 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
45.Capitalreserve
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Fortheperiodfrom1Januaryto30June2022 | ||||
| Capitalpremium | 23,189,922,809.62 | 239,845,666.58 | - | 23,429,768,476.20 |
| Including:Capitalcontributedbyinvestors | 7,012,992,483.94 | - | - | 7,012,992,483.94 |
| Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol | 13,302,937,205.73 | - | - | 13,302,937,205.73 |
| Differencesarisingfromacquisitionofminorityinterests(Note1) | 1,215,209,939.74 | 239,845,666.58 | - | 1,455,055,606.32 |
| Others | 1,658,783,180.21 | - | - | 1,658,783,180.21 |
| Othercapitalreserve | 402,779,949.08 | 15,431,560.46 | 1,245,688.61 | 416,965,820.93 |
| Including:Transferfromcapitalreserveunderthepreviousaccountingsystem | -2,781,133.00 | - | - | -2,781,133.00 |
| Sharebasedpaymentwithoutexercise(Note2) | 9,956,938.60 | 3,448,276.71 | - | 13,405,215.31 |
| Otherchangesinowners'equityoftheinvesteeunderequitymethodotherthanchangesinnetprofitorloss,profitdistributionandothercomprehensiveincome | 395,604,143.48 | 11,983,283.75 | - | 407,587,427.23 |
| Others | - | - | 1,245,688.61 | -1,245,688.61 |
| Total | 23,592,702,758.70 | 255,277,227.04 | 1,245,688.61 | 23,846,734,297.13 |
Note1:TheCompanyanditssubsidiary,PortDevelopment(HongKong)Co.,Ltd.,("Port
Development(HongKong))increasedtheholdingofordinarysharesinCMPort,whichincreasedthecapitalreservebyRMB239,845,666.58inthecurrentyear.RefertoNote(X)2fordetails.Note2:RefertoNote(XIV)2fordetails.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
46.Othercomprehensiveincome
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Openingbalance | Amountincurredintheperiod | Less:Othercomprehensiveincometransfertocapitalreserve | Closingbalance | ||||
| Pre-taxamountfortheperiod | Less:Amountincludedinothercomprehensiveincomeinthepriorperiodstransferredtoprofitorlossthisperiod | Less:Incometaxexpense | Post-taxincomeattributabletoownersoftheCompany | Post-taxincomeattributabletominorityshareholders | ||||
| Fortheperiodfrom1Januaryto30June2022: | ||||||||
| I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss | 81,233,996.26 | -177,468,679.49 | - | 471,760.58 | -76,728,084.39 | -101,212,355.68 | 7,513,669.91 | -3,007,758.04 |
| Including:Changesarisingfromremeasurementofdefinedbenefitsplan | 2,603,415.85 | - | - | - | - | - | - | 2,603,415.85 |
| Othercomprehensiveincomethatcan'tbetransferredtoprofitorlossunderequitymethod | 2,643,088.68 | -179,833,765.49 | - | - | -78,616,754.21 | -101,217,011.28 | - | -75,973,665.53 |
| Changesinfairvalueofotherequityinstruments | 75,987,491.73 | 2,365,086.00 | - | 471,760.58 | 1,888,669.82 | 4,655.60 | 7,513,669.91 | 70,362,491.64 |
| II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss | -971,359,314.44 | 619,669,556.34 | - | - | 58,032,022.74 | 561,637,533.60 | - | -913,327,291.70 |
| Including:Othercomprehensiveincomethatmaybetransferredtoprofitorlossunderequitymethod | 49,431,519.10 | -266,312,840.26 | - | - | -117,324,901.44 | -148,987,938.82 | - | -67,893,382.34 |
| Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | -1,020,790,833.54 | 885,982,396.60 | - | - | 175,356,924.18 | 710,625,472.42 | - | -845,433,909.36 |
| Totalothercomprehensiveincome | -890,125,318.18 | 442,200,876.85 | - | 471,760.58 | -18,696,061.65 | 460,425,177.92 | 7,513,669.91 | -916,335,049.74 |
| Fortheyearended31December2021: | ||||||||
| I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss | 81,416,891.26 | -11,657,252.55 | - | -398,211.33 | -316,112.17 | -10,942,929.05 | -133,217.17 | 81,233,996.26 |
| Including:Changesarisingfromremeasurementofdefinedbenefitsplan | 11,318,269.18 | -32,665,927.62 | - | - | -8,714,853.33 | -23,951,074.29 | - | 2,603,415.85 |
| Othercomprehensiveincomethatcan'tbetransferredtoprofitorlossunderequitymethod | -6,986,086.44 | 22,223,934.38 | - | - | 9,495,957.95 | 12,727,976.43 | -133,217.17 | 2,643,088.68 |
| Changesinfairvalueofotherequityinstruments | 77,084,708.52 | -1,215,259.31 | - | -398,211.33 | -1,097,216.79 | 280,168.81 | - | 75,987,491.73 |
| II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss | -908,114,194.32 | -700,532,642.69 | - | - | -60,790,651.33 | -639,741,991.36 | 2,454,468.79 | -971,359,314.44 |
| Including:Othercomprehensiveincomethatmaybetransferredtoprofitorlossunderequitymethod | 31,725,280.52 | 42,635,389.45 | - | - | 20,160,707.37 | 22,474,682.08 | 2,454,468.79 | 49,431,519.10 |
| Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | -939,839,474.84 | -743,168,032.14 | - | - | -80,951,358.70 | -662,216,673.44 | - | -1,020,790,833.54 |
| Totalothercomprehensiveincome | -826,697,303.06 | -712,189,895.24 | - | -398,211.33 | -61,106,763.50 | -650,684,920.41 | 2,321,251.62 | -890,125,318.18 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
47.Specialreserve
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Fortheperiodfrom1Januaryto30June2022 | ||||
| Productionsafetyreserve | 9,184,429.12 | 32,027,158.31 | 8,895,751.51 | 32,315,835.92 |
48.Surplusreserve
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Fortheperiodfrom1Januaryto30June2022 | ||||
| Statutorysurplusreserve | 961,182,562.00 | - | - | 961,182,562.00 |
49.Unappropriatedprofit
| Item | Amount | Proportionofappropriationorallocation |
| Fortheperiodfrom1Januaryto30June2022 | ||
| Unappropriatedprofitatthebeginningofperiodbeforeadjustment | 14,205,879,106.49 | |
| Add:Adjustmentofunappropriatedprofitatthebeginningoftheperiod | - | |
| Unappropriatedprofitatthebeginningofperiodafteradjustment | 14,205,879,106.49 | |
| Add:NetprofitattributabletoshareholdersoftheCompanyfortheperiod | 1,981,861,324.62 | |
| Less:Appropriationtostatutorysurplusreserve | - | |
| Appropriationtodiscretionarysurplusreserve | - | |
| Appropriationtogeneralriskreserve | - | |
| Ordinaryshares'dividendspayable | 826,617,003.32 | Note |
| PensionBenefits | - | |
| Others | -7,513,669.91 | |
| Unappropriatedprofitattheendoftheperiod | 15,368,637,097.70 | |
Item
| Item | Amount | Proportionofappropriationorallocation |
| Fortheyearended31December2021 | ||
| Unappropriatedprofitattheendofprioryearbeforeadjustment | 12,316,177,395.17 | |
| Add:Adjustmentofunappropriatedprofitatthebeginningoftheyear | 12,942,703.53 | |
| Including:Changesinscopeofconsolidationofenterprisesundercommoncontrol | 12,942,703.53 | |
| Unappropriatedprofitatthebeginningoftheperiodafteradjustment(restated) | 12,329,120,098.70 | |
| Add:NetprofitattributabletoshareholdersoftheCompanyfortheyear | 2,685,829,204.07 | |
| Less:Appropriationtostatutorysurplusreserve | 70,492,239.72 | |
| Appropriationtodiscretionarysurplusreserve | - | |
| Appropriationtogeneralriskreserve | - | |
| Ordinaryshares'dividendspayable | 730,498,747.12 | |
| Pensionbenefits | 3,525,104.12 | |
| Others | 4,554,105.32 | |
| Unappropriatedprofitattheendoftheyear | 14,205,879,106.49 | |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
49.Unappropriatedprofit-continuedNote:Accordingtotheresolutionof2021shareholdersmeetingheldon21April2022,the
CompanydistributedcashdividendsofRMB4.30(inclusiveoftax)forevery10shares,totalinguptoRMB826,617,003.32onthebasisofthetotalsharesof1,922,365,124sharesattheendof2021.
50.Operatingincomeandoperatingcosts
(1)Operatingincomeandoperatingcosts
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | ||
| Income | Cost | Income | Cost | |
| Principaloperating | 8,082,386,860.84 | 4,522,454,260.85 | 7,253,456,936.53 | 4,084,989,279.30 |
| Otheroperating | 68,075,506.35 | 114,914,620.80 | 86,485,925.73 | 113,461,884.97 |
| Total | 8,150,462,367.19 | 4,637,368,881.65 | 7,339,942,862.26 | 4,198,451,164.27 |
(2)Revenuefromcontracts
| Categoriesofcontracts | Portsoperation | Bondedlogisticsoperation | Otheroperation | Total |
| MainlandChina,HongKongandTaiwanarea | 5,943,495,002.29 | 188,618,709.21 | 68,075,506.35 | 6,200,189,217.85 |
| -PearlRiverDelta | 3,437,254,973.24 | 117,533,542.53 | 68,075,506.35 | 3,622,864,022.12 |
| -YangtzeRiverDelta | 649,729,096.28 | - | - | 649,729,096.28 |
| -BohaiRim | 33,866,877.90 | 71,085,166.68 | - | 104,952,044.58 |
| -Otherareas | 1,822,644,054.87 | - | - | 1,822,644,054.87 |
| Othercountries | 1,929,566,724.83 | 20,706,424.51 | - | 1,950,273,149.34 |
| Total | 7,873,061,727.12 | 209,325,133.72 | 68,075,506.35 | 8,150,462,367.19 |
(3)DescriptionofperformanceobligationsTheGroupprovideswharfservice,bondedlogisticsserviceandotherservices.Theseservicesareobligationsperformedoveraperiodoftime.Forwharfservices,asthehandlingtimeforcontainersandbulkcargosisshort,themanagementbelievesthatitisnotnecessarytorecognizerevenueaccordingtotheprogresstowardsthecompletionofcontractanditisanappropriatemethodtorecognizethefulfillmentofperformanceobligationandrevenueuponthecompletionoftheservice.Forbondedlogisticsserviceandotherservices,thecustomersevenlyobtainsandconsumestheeconomicbenefitsfromtheGroup'sperformanceofcontract,meanwhilethechargingrulesasagreedinthecontracttermsusuallyadoptdaily/month/yearlybasis.Duringtheprocessofrenderingservices,theGrouprecognizesrevenueusingstraight-linemethod.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
50.Operatingincomeandoperatingcosts-continued
(3)Descriptionofperformanceobligations-continuedPartoftheGroup'shandlingcontractsareestablishedwithdiscountterms,i.e.thecustomerswhosebusinessvolumereachesagreedlevel,aregrantedwithpreferentialchargerateordiscount.Attheendoftheperiod,asthebusinessquantityfinallyrealizedwithinthecontractperiodisuncertain,thecontractconsiderationissubjecttovariablefactors.Themanagementincludedthispartofdiscountinotherpayables.Thevariableconsiderationsarisingfromsalesdiscountarenotincludedinthetransaction.Attheendoftheyear,thevariableconsiderationsarisingfromsalesdiscountaresetoutinNote(VIII)33(3).
51.Taxesandlevies
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Propertytax | 36,445,186.60 | 34,695,044.14 |
| Landusetax | 18,256,154.56 | 18,759,104.16 |
| Cityconstructionandmaintenancetax | 4,410,503.24 | 4,645,878.43 |
| Educationsurchargesandlocaleducationsurcharges | 3,271,326.62 | 3,499,847.04 |
| Stampduty | 2,171,053.36 | 1,588,858.62 |
| Others(Note) | 70,960,315.69 | 24,482,902.09 |
| Total | 135,514,540.07 | 87,671,634.48 |
Note:Othersaremainly:(1)2taxes,theProgramofSocialIntegrationandContributionforthe
FinancingofSocialSecurityandTaxonServices,withtotalamountofBRL53,143,988.38(equivalenttoRMB67,784,031.58)assumedbyCompany'ssubsidiaryTCPinthecurrentperiod.Thetotalamountis;and(2)theenvironmentalprotectiontaxofRMB2,565,799.05assumedbyZhanjiangPort,asubsidiaryofthecompany,inthecurrentperiod.
52.Administrativeexpenses
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Employee'ssalary | 602,477,006.88 | 571,878,311.76 |
| Depreciationexpenses | 39,373,984.62 | 36,293,887.29 |
| Amortizationofintangibleassets | 28,961,337.07 | 31,103,215.97 |
| Feespaidtoagencies | 35,451,603.67 | 21,580,976.43 |
| Others | 106,238,728.31 | 105,513,581.92 |
| Total | 812,502,660.55 | 766,369,973.37 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
53.Financialexpenses
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Interestexpenses | 1,117,272,966.05 | 894,059,966.10 |
| Less:Capitalizedinterestexpenses | 14,559,885.48 | 43,265,921.33 |
| Less:Interestincome | 212,820,789.37 | 183,191,011.93 |
| Interestexpensesofleaseliabilities | 38,284,349.10 | 41,716,504.99 |
| Handlingfee | 12,011,540.57 | 8,429,111.68 |
| Exchangedifferences | 409,143,801.31 | 8,584,164.43 |
| Others | 2,613,065.49 | 3,776,199.94 |
| Total | 1,351,945,047.67 | 730,109,013.88 |
54.Otherincome
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Subsidyforbusinessdevelopment | 31,566,099.04 | 251,275,221.00 |
| Transferredfromdeferredincome(NoteVIII42) | 22,802,653.80 | 21,019,719.24 |
| AdditionaldeductionofVAT | 14,149,044.01 | 12,256,071.53 |
| Subsidyforbusinessoperation | 8,918,543.30 | 2,158,465.47 |
| Subsidyforjobstabilization | 4,738,985.48 | 13,934,992.63 |
| Specialfundforinnovation | 1,911,900.00 | 1,674,200.00 |
| Refundofwithholdingtax | 1,418,500.68 | 1,751,374.91 |
| Others | 1,975,098.34 | 1,912,213.84 |
| Total | 87,480,824.65 | 305,982,258.62 |
55.Investmentincome
(1)Detailsofinvestmentincome
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Long-termequityinvestmentsincomeunderequitymethod | 4,211,173,480.05 | 3,557,359,417.25 |
| Including:Long-termequityinvestmentsincomeofassociatedenterprisesunderequitymethod | 4,013,474,427.71 | 3,462,322,244.32 |
| Including:Long-termequityinvestmentsincomeofjointventureunderequitymethod | 197,699,052.34 | 95,037,172.93 |
| Investmentincomefromdisposaloflong-termequityinvestment | -43,817.42 | - |
| Investmentincomeonheld-for-tradingfinancialassets | 143,904,101.39 | 7,908,358.90 |
| Investmentincomeonothernon-currentfinancialassets | - | 40,188,401.29 |
| Dividendincomeonotherequityinstruments | 240,001.47 | 460,000.00 |
| Interestincomeondebtinvestments | - | 3,827,414.15 |
| Total | 4,355,273,765.49 | 3,609,743,591.59 |
ThereisnosignificantrestrictionontheremittanceoftheGroup'sinvestmentincome.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
55.Investmentincome-continued
(2)Detailsoflong-termequityinvestmentsincomeunderequitymethod
CHINAMERCHANTSPORTGROUPCO.,LTD.
Investee
| Investee | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Reasonforchanges |
| ShanghaiPortGroup | 2,960,021,044.89 | 2,327,928,232.22 | Changesinnetprofitofinvestee |
| PortDeDjiboutiS.A | 511,374,203.72 | 1,166,486.11 | Changesinnetprofitofinvestee |
| TerminalLinkSAS | 198,772,626.71 | 182,473,114.97 | Changesinnetprofitofinvestee |
| NinboZhoushan | 125,568,457.33 | 107,573,645.07 | Changesinnetprofitofinvestee |
| NanshanGroup | 50,936,344.06 | 560,718,761.21 | Changesinnetprofitofinvestee |
| LiaoningPort | 83,953,806.32 | 91,600,129.01 | Changesinnetprofitofinvestee |
| ModernTerminalsLimited | 67,145,545.55 | 41,893,785.31 | Changesinnetprofitofinvestee |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | 56,430,615.96 | 30,849,525.86 | Changesinnetprofitofinvestee |
| Euro-AsiaOceangateS.àr.l. | 48,659,755.96 | 35,657,835.28 | Changesinnetprofitofinvestee |
| ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd. | 13,281,800.00 | 108,224,200.00 | Changesinnetprofitofinvestee |
| Others | 95,029,279.55 | 69,273,702.21 | Changesinnetprofitofinvestee |
| Total | 4,211,173,480.05 | 3,557,359,417.25 |
56.Gains(Losses)onchangesinfairvalue
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Held-for-tradingfinancialassets | 8,456,691.77 | 7,839.21 |
| Othernon-currentfinancialassets | -46,482,804.35 | -45,536,366.63 |
| Including:Financialassetsatfairvaluethroughprofitorloss | -46,482,804.35 | -45,536,366.63 |
| Othernon-currentliabilities | - | -443,004,339.03 |
| Including:Financialliabilitiesatfairvaluethroughprofitorloss | - | -443,004,339.03 |
| Total | -38,026,112.58 | -488,532,866.45 |
57.Gains(Losses)onimpairmentofcredit
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| I.Gains(Losses)onimpairmentofcreditofaccountsreceivable | 2,604,456.88 | -1,176,139.34 |
| II.Gains(Losses)onimpairmentofcreditofotherreceivables | 449,134.32 | -1,724,448.07 |
| III.Gains(Losses)onimpairmentofcreditoflong-termreceivables | -171,178.59 | 314,255.21 |
| Total | 2,882,412.61 | -2,586,332.20 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
58.Gains(Losses)ondisposalofassets
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Gains(Losses)ondisposalofnon-currentassets | -207,276.37 | 9,432,717.92 | -207,276.37 |
| Including:Gains(Losses)ondisposaloffixedassets | -723,828.56 | 12,639,946.67 | -723,828.56 |
| Gains(Losses)ondisposalofintangible | - | -3,516,976.79 | - |
| Otherincome | 516,552.19 | 309,748.04 | 516,552.19 |
59.Non-operatingincome
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Governmentgrants | 1,261,712.56 | 358,210.35 | 1,261,712.56 |
| Insurancecompensationreceived | 375,097.87 | 325,396.51 | 375,097.87 |
| Gainsfromscrappingofnon-currentassets | 1,440,232.40 | 2,379,435.54 | 1,440,232.40 |
| Compensationreceivedforcontractsviolation | 3,789,301.53 | 924,253.93 | 3,789,301.53 |
| Exemptedcurrentaccounts | 4,634,628.05 | 1,365,449.42 | 4,634,628.05 |
| Others | 8,691,953.98 | 23,634,923.98 | 8,691,953.98 |
| Total | 20,192,926.39 | 28,987,669.73 | 20,192,926.39 |
60.Non-operatingexpenses
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Externaldonations | 231,477.20 | 526,437.28 | 231,477.20 |
| Lossesonretirementofnon-currentassets | 2,984,083.67 | 7,080,879.70 | 2,984,083.67 |
| Compensation,liquidateddamagesandpenalties | - | 553,684.53 | - |
| Litigationlosses | 16,732,991.55 | 4,265,352.56 | 16,732,991.55 |
| Others | 318,905.87 | 1,897,510.20 | 318,905.87 |
| Total | 20,267,458.29 | 14,323,864.27 | 20,267,458.29 |
61.Incometaxexpenses
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Currenttaxexpenses | 553,914,215.26 | 596,520,712.86 |
| Deferredtaxexpenses | 71,729,502.16 | 46,917,882.26 |
| Total | 625,643,717.42 | 643,438,595.12 |
-120-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
61.Incometaxexpenses-continuedReconciliationofincometaxexpensestotheaccountingprofitisasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Amountincurredinthecurrentperiod |
| Accountingprofit | 5,505,627,140.65 |
| Incometaxexpensescalculatedat25% | 1,376,406,785.16 |
| Effectofnon-deductiblecost,expensesandlosses | 118,798,305.95 |
| Accruedincometaxexpenses | 217,881,366.51 |
| Effectofdeductibletemporarydifferencesanddeductiblelossesforwhichthedeferredtaxassetsarenotrecognizedincurrentyear | 70,318,343.37 |
| Effectoftax-freeincome(Note) | -381,667,668.52 |
| Effectoftaxincentivesandchangesoftaxrate | -214,945,935.09 |
| Effectofdifferenttaxratesofsubsidiariesoperatinginotherjurisdictions | -515,800,679.73 |
| Effectofutilizingdeductiblelossesforwhichthedeferredtaxassetswerenotrecognizedinpriorperiod | -45,782,521.71 |
| Effectofadjustmentstoprior-yearincometax | -2,650,876.87 |
| Changesintheopeningbalanceofdeferredtaxassets/liabilitiesduetotaxadjustments | - |
| Others | 3,086,598.35 |
| Incometaxexpenses | 625,643,717.42 |
Note:Thismainlyrepresentsthetaxeffectoninvestmentincomefromjointventureand
associates.
62.Assetswithrestrictedownershiporuseright
| Item | Closingbalance | Openingbalance |
| EquityinvestmentinCICT(Note1) | 2,396,373,362.14 | 2,026,382,103.10 |
| Fixedassets(Note2) | 272,372,129.67 | 278,015,952.68 |
| EquityinvestmentinTML(Note1) | 213,575,808.71 | 411,893,452.06 |
| Intangibleassets(Note2) | 209,640,890.21 | 212,232,642.30 |
| Cashandbankbalances(Note3) | 13,071,525.94 | 12,830,212.33 |
| Constructioninprogress(Note2) | 11,748,467.79 | 12,388,924.87 |
| Total | 3,116,782,184.46 | 2,953,743,287.34 |
Note1:DetailsofmortgagedequityandinterestsaresetoutinNote(VIII)36.Note2:YidePortmortgageditslandwithpropertyright,fixedassetsandconstructionin
progresstoobtainbankborrowings;ShenzhenHaixingmortgageditslandwithpropertyrighttoobtainbankborrowings,ZhoushanRoRoTerminalmortgageditslandwithpropertyrightandfixedassetstoobtainbankborrowings.DetailsofmortgageborrowingsaresetoutinNote(VIII)36.Note3:DetailsofrestrictedcashandbankbalancesaresetoutinNote(VIII)1.
-121-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
63.OthercomprehensiveincomeDetailsaresetoutinNote(VIII)46.
64.Itemsincashflowstatement
(1)Othercashreceiptsrelatingtooperatingactivities
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Governmentgrants | 42,016,594.20 | 271,313,303.29 |
| Interestincome | 92,837,488.11 | 75,974,603.30 |
| Guaranteesanddeposits | 26,742,477.96 | 20,852,450.76 |
| Rentals | 2,869,149.16 | 4,157,219.40 |
| Insurancecompensation | 1,210,988.68 | 1,932,522.06 |
| Harborconstructionfeeandservicechargerefund | - | 124,986.79 |
| Others | 282,982,833.45 | 229,171,279.38 |
| Total | 448,659,531.56 | 603,526,364.98 |
(2)Othercashpaymentsrelatingtooperatingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Advancepayment | 188,969,753.65 | 127,724,052.53 |
| Operatingexpensessuchasoperatingcostsandadministrationexpenseetc. | 110,138,728.88 | 76,583,283.18 |
| Guaranteesanddeposits | 15,253,990.79 | 17,586,204.25 |
| Harbourduesoncargo | 6,923,999.90 | 6,404,202.74 |
| Rentals | 13,157,361.39 | 5,187,155.54 |
| Portcharges | 3,234,003.82 | 4,837,252.74 |
| Portconstructionfee | - | 252,673.92 |
| Others | 73,444,972.12 | 169,468,219.41 |
| Total | 411,122,810.55 | 408,043,044.31 |
(3)Othercashreceiptsrelatingtoinvestingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Receiptofprojectadvanceinterest | 81,787,395.95 | 81,714,623.32 |
| Recoveryofprojectadvanceprincipal | - | 179,352,864.40 |
| Recoveryofloans | - | 9,462,511.39 |
| Others | 12,778,782.74 | 85,123,172.47 |
| Total | 94,566,178.69 | 355,653,171.58 |
-122-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
64.Itemsincashflowstatement-continued
(4)Othercashpaymentsrelatingtoinvestingactivities
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| TaxesrelatingtolandpurchaseandreservepaidtoAntongjieTerminalStorageService(Shenzhen)Co.,Ltd("Antongjie") | 947,523,385.44 | - |
| StaffrelocationcostsrelatingtolandpurchaseandreservepaidtoShantouPort | 18,761,552.44 | 11,284,795.93 |
| Others | 1,427,796.54 | 104.00 |
| Total | 967,712,734.42 | 11,284,899.93 |
(5)Othercashreceiptsrelatingtofinancingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Receiptofleasebackpayments | 50,000,000.00 | - |
| Others | 2,897,609.21 | - |
| Total | 52,897,609.21 | - |
(6)Othercashpaymentsrelatingtofinancingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Rentalpayments | 129,259,179.22 | 161,265,078.92 |
| AmountspaidbytheCompanytoacquireequityofminorityinterests | 74,787,051.66 | - |
| Paymentsforfinancingcosts | 16,628,834.22 | 982,254.76 |
| SINOSUREinsurancepremiumpaidfortheloansfromChinaDevelopmentBank | 2,352,053.94 | 1,748,638.84 |
| DalianPortLogisticsNetworkCo.,Ltd.("PortLogistics") | - | 8,748,637.26 |
| Others | 1,950,000.00 | 16,977.03 |
| Total | 224,977,119.04 | 172,761,586.81 |
-123-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
65.Supplementaryinformationtothecashflowstatement
(1)Supplementaryinformationtothecashflowstatement
CHINAMERCHANTSPORTGROUPCO.,LTD.
Supplementaryinformation
| Supplementaryinformation | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| 1.Reconciliationofnetprofittocashflowsfromoperatingactivities: | ||
| Netprofit | 4,879,983,423.23 | 4,264,261,244.83 |
| Add:Provisionforimpairmentlossesofassets | - | - |
| Provisionforimpairmentlossesofcredit | -2,882,412.61 | 2,586,332.20 |
| Depreciationoffixedassets | 993,740,407.62 | 914,300,614.45 |
| Depreciationofinvestmentproperty | 92,083,960.88 | 94,835,428.40 |
| Depreciationofright-of-useassets | 174,019,155.17 | 166,527,483.26 |
| Amortizationofintangibleassets | 319,604,700.15 | 303,613,191.00 |
| Amortizationoflong-termprepaidexpenses | 37,291,473.18 | 23,468,890.89 |
| Losses(gains)ondisposaloffixedassets,intangibleassetsandotherlong-termassets | 207,276.37 | -9,432,717.92 |
| Lossesonretirementoffixedassets,intangibleassetsandotherlong-termassets | 1,543,851.27 | 4,701,444.16 |
| Lossesonchangesinfairvalue | 38,026,112.58 | 488,532,866.45 |
| Financialexpenses | 1,456,795,942.93 | 799,077,760.88 |
| Investmentincome | -4,355,273,765.49 | -3,609,743,591.59 |
| Decrease(increase)indeferredtaxassets | 5,009,887.03 | -69,535,313.14 |
| Increaseindeferredtaxliabilities | 5,429,041.83 | 116,453,195.40 |
| Decrease(increase)ininventories | -24,682,369.59 | 4,815,029.15 |
| Increaseinoperatingreceivables | -487,958,209.89 | -1,125,312,552.90 |
| Increaseinoperatingpayables | 88,312,702.43 | 565,811,102.44 |
| Netcashflowsfromoperatingactivities | 3,221,251,177.09 | 2,934,960,407.96 |
| 2.Significantinvestingandfinancingactivitiesthatdonotinvolvecashreceiptsandpayments: | ||
| Conversionofdebtintocapital | - | - |
| Convertiblebondsduewithinoneyear | - | - |
| Fixedassetsunderfinancelease | - | - |
| 3.Netchangesincashandcashequivalents: | ||
| Closingbalanceofcash | 14,123,520,754.66 | 9,347,523,070.31 |
| Less:Openingbalanceofcash | 12,727,355,238.36 | 11,898,618,327.29 |
| Add:Closingbalanceofcashequivalents | - | - |
| Less:Openingbalanceofcashequivalents | - | - |
| Netincrease(decrease)incashandcashequivalents | 1,396,165,516.30 | -2,551,095,256.98 |
(2)Cashandcashequivalents
| Item | Closingbalance | Openingbalance |
| I.Cash | 14,123,520,754.66 | 12,727,355,238.36 |
| Including:Cashonhand | 317,164.88 | 501,446.73 |
| Bankdeposits | 13,797,566,826.58 | 12,353,104,402.58 |
| Othermonetaryfunds | 325,636,763.20 | 373,749,389.05 |
| II.Cashequivalents | - | - |
| III.Closingbalanceofcashandcashequivalents | 14,123,520,754.66 | 12,727,355,238.36 |
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
66.Foreigncurrencymonetaryitems
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Closingbalanceoforiginalcurrency | Exchangerate | ClosingamountinRMB |
| Cashandbankbalances | |||
| Including:HKD | 46,141,253.16 | 0.8517 | 39,298,505.32 |
| USD | 131,054,751.49 | 6.6850 | 876,101,013.71 |
| EUR | 116,507,279.06 | 7.0643 | 823,042,371.46 |
| RMB | 90,541,744.00 | 1.0000 | 90,541,744.00 |
| Accountsreceivable | |||
| Including:HKD | 1,125,943.66 | 0.8517 | 958,966.22 |
| USD | 6,597,534.73 | 6.6850 | 44,104,519.67 |
| EUR | 20,928,240.21 | 7.0643 | 147,843,367.32 |
| Otherreceivables | |||
| Including:HKD | 97,795,500.00 | 0.8517 | 83,292,427.35 |
| USD | 106,814,871.25 | 6.6850 | 714,057,414.31 |
| EUR | 3,579,814.27 | 7.0643 | 25,288,881.95 |
| RMB | 668,251,139.23 | 1.0000 | 668,251,139.23 |
| Othernon-currentassets | |||
| Including:EUR | 3,891,433.75 | 7.0643 | 27,490,255.44 |
| Short-termborrowings | |||
| Including:HKD | 800,000,000.00 | 0.8517 | 681,360,000.00 |
| USD | 45,000,000.00 | 6.6850 | 300,825,000.00 |
| RMB | 2,922,260,000.00 | 1.0000 | 2,922,260,000.00 |
| Accountspayable | |||
| Including:HKD | 1,366,414.90 | 0.8517 | 1,163,775.57 |
| EUR | 4,342,355.57 | 7.0643 | 30,675,702.45 |
| RMB | 300,000.00 | 1.0000 | 300,000.00 |
| Otherpayables | |||
| Including:HKD | 39,816,067.41 | 0.8517 | 33,911,344.61 |
| USD | 68,594,172.22 | 6.6850 | 458,552,041.29 |
| EUR | 130,927,404.23 | 7.0643 | 924,910,461.70 |
| RMB | 9,636,097.68 | 1.0000 | 9,636,097.68 |
| Non-currentliabilitiesduewithinoneyear | |||
| Including:USD | 9,571,030.80 | 6.6850 | 63,982,340.88 |
| Long-termborrowings | |||
| Including:USD | 209,200,000.00 | 6.6850 | 1,398,502,000.00 |
| EUR | 66,937,500.00 | 7.0643 | 472,866,581.25 |
| RMB | 670,000,000.00 | 1.0000 | 670,000,000.00 |
| Bondspayable | |||
| Including:USD | 2,489,458,194.57 | 6.6850 | 16,642,028,030.72 |
| Long-termpayables | |||
| Including:HKD | 4,204,746,793.15 | 0.8517 | 3,581,182,843.73 |
-125-
(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
67.Governmentgrants
(1)Newgovernmentgrantsfortheperiod
CHINAMERCHANTSPORTGROUPCO.,LTD.
Type
| Type | Amount | Item | Account | Amountincludedinprofitorlossfortheperiod |
| Relatedtoincome | 31,566,099.04 | Subsidyforbusinessdevelopment | Otherincome | 31,566,099.04 |
| Relatedtoincome | 8,918,543.30 | Subsidyforbusinessoperation | Otherincome | 8,918,543.30 |
| Relatedtoincome | 4,738,985.48 | Subsidyforjobstabilization | Otherincome | 4,738,985.48 |
| Relatedtoincome | 1,911,900.00 | Specialfundforinnovation | Otherincome | 1,911,900.00 |
| Relatedtoincome | 1,975,098.34 | Others | Otherincome | 1,975,098.34 |
| Relatedtoincome | 1,261,712.56 | Others | Non-operatingincome | 1,261,712.56 |
| Relatedtoassets | 418,200.00 | Governmentsubsidiesforintelligentsystem | Deferredincome | - |
| Total | 50,790,538.72 | 50,372,338.72 |
68.Lease
(1)Lessorunderoperatinglease
| Item | Amount |
| I.Revenue | |
| Leaseincome | 205,040,580.07 |
| Including:Incomerelatedtovariableleasepaymentsthatarenotincludedinleasereceipts | - |
| II.Undiscountedleasereceiptsreceivedafterthebalancesheetdate | |
| 1styear | 304,563,408.38 |
| 2ndyear | 161,760,881.59 |
| 3rdyear | 124,886,289.84 |
| 4thyear | 110,117,020.83 |
| 5thyear | 104,050,301.27 |
| Over5years | 254,322,257.57 |
Note:TheoperatingleaseswheretheGroupasthelessorarerelatedtoportandterminal
facilities,machineryequipment,vehicles,landandbuildings,withleasetermsrangingfrom1daysto50yearsandoptiontorenewtheleaseofportandterminalfacilities,machineryequipment,landandbuildings.TheGroupconsidersthatastheleasedassetsareproperlyused,theunguaranteedbalanceofsuchassetsdoesnotconstitutesmaterialriskoftheGroup.
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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
68.Lease-continued
(2)Lessee
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Amount |
| Interestexpenseonleaseliabilities | 38,284,349.10 |
| Short-termleaseexpensesthatareaccountedforusingsimplifiedapproachandincludedincostofrelatedassetsorprofitorlossfortheperiod | 29,143,920.78 |
| Expensesonleaseoflow-valueassets(exclusiveofexpensesonshort-termleaseoflow-valueassets)thatareaccountedforusingsimplifiedapproachandincludedincostofrelatedassetsorprofitorlossfortheperiod | 1,491,716.96 |
| Variableleasepaymentsthatareincludedincostofrelatedassetsorprofitorlossbutnotincludedinmeasurementofleaseliabilities | - |
| Including:theportionarisingfromsaleandleasebacktransactions | - |
| Incomefromsub-leaseofright-of-useassets | 6,965,841.44 |
| Totalcashoutflowsrelatingtolease | 135,717,792.79 |
| Profit(loss)arisingfromsaleandleasebacktransactions | 667,508.53 |
| Cashinflowsfromsaleandleasebacktransactions | 50,000,000.00 |
| Cashoutflowsfromsaleandleasebacktransactions | 110,818,330.25 |
| Others | - |
(IX)CHANGESINSCOPEOFCONSOLIDATION
1.Businesscombinationnotinvolvingenterprisesundercommoncontrol
TheGrouphasnobusinesscombinationnotinvolvingenterprisesundercommoncontrolinthecurrentperiod.
2.Businesscombinationinvolvingenterprisesundercommoncontrol
TheGrouphasnobusinesscombinationinvolvingenterprisesundercommoncontrolinthecurrentperiod.
3.Reversepurchase
TheGrouphasnoreversepurchaseinthecurrentperiod.
4.Disposalofsubsidiary
ThereisnolossofcontroloverthedisposalofsubsidiaryinvestmentintheGroupinthecurrentperiod.
5.Changesinscopeofconsolidationforotherreasons
TheGrouphasnochangesinscopeofconsolidationforotherreasonsotherthantheestablishmentofnewsubsidiariesinthecurrentperiod.
-127-
(X)EQUITYINOTHERENTITIES
1.Interestsinsubsidiaries
(1)CompositionoftheGroup
CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofthesubsidiary
| Nameofthesubsidiary | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB'0000,unlessotherwisespecified) | Proportionofownershipinterest(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| ShenzhenChiwanInternationalFreightAgencyCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 550.00 | 100.00 | - | Investmentestablishment |
| ChiwanWharf(HongKong)Co.,Ltd.("ChiwanWharf(HongKong)") | HongKong,PRC | HongKong,PRC | Investmentholding | HKD1,000,000.00 | 100.00 | - | Investmentestablishment |
| DongguanChiwanWarfCo.,Ltd. | Dongguan,PRC | Dongguan,PRC | Logisticssupportservices | 45,000.00 | 85.00 | - | Investmentestablishment |
| DongguanChiwanTerminalCo.,Ltd. | Dongguan,PRC | Dongguan,PRC | Logisticssupportservices | 40,000.00 | 100.00 | - | Investmentestablishment |
| ShenzhenChiwanHarborContainerCo.Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 28,820.00 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenChiwanPortDevelopmentCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 10,000.00 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChiwanContainerTerminalCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | USD95,300,000.00 | 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 | HKD800,000.00 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsPort(Zhoushan)RoRoLogisticsCo.,Ltd | PRC | PRC | Logisticssupportservices | 17,307.86 | 51.00 | - | Assetsacquisition |
| CMPort(Note1) | HongKong,PRC | HongKong,PRC | Investmentholding | HKD44,016,586,600.00 | 43.85 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsContainerServicesLimited | HongKong | HongKong | Logisticssupportservices | HKD500,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsInternational(China)InvestmentCo.,Ltd. | PRC | PRC | Investmentholding | USD67,400,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| QingdaoPortMerchantsInternationalContainerTerminalCo.,Ltd. | PRC | PRC | Logisticssupportservices | USD206,300,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsInternationalTerminal(Qingdao)Co.,Ltd. | PRC | PRC | Logisticssupportservices | USD44,000,000.00 | - | 90.10 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | PRC | PRC | Logisticssupportservices | 70,000.00 | 40.00 | 60.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsPortServices(Shenzhen)Co.,Ltd. | PRC | PRC | Logisticssupportservices | 55,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShekouContainerTerminalsLtd. | PRC | PRC | Logisticssupportservices | HKD618,201,200.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenLianyunjieContainerTerminalsCo.,Ltd | PRC | PRC | Logisticssupportservices | 60,854.90 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| AnxunjieContainerTerminals(Shenzhen)Co.,Ltd. | PRC | PRC | Logisticssupportservices | 127,600.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenHaiqinEngineeringManagementCo.,Ltd | PRC | PRC | Engineeringsupervisionservices | 300.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenHaixing | PRC | PRC | Logisticssupportservices | 53,072.92 | - | 67.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| MagangCangma | PRC | PRC | Logisticssupportservices | 33,500.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenMawanGanghangCo.,Ltd. | PRC | PRC | Logisticssupportservices | 20,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenZhongzhiInvestmentCo.,Ltd. | PRC | PRC | Investmentconsulting | 4,000.00 | - | 75.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
-128-
(X)EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(1)CompositionoftheGroup-continued
CHINAMERCHANTSPORTGROUPCO.,LTD.
Nameofthesubsidiary
| Nameofthesubsidiary | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB'0000,unlessotherwisespecified) | Proportionofownershipinterest(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| ShenzhenHaixingLogisticsDevelopmentCo.,Ltd. | PRC | PRC | Logisticssupportservices | 7,066.79 | - | 67.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenLianyongtongTerminalCo.,Ltd. | PRC | PRC | Logisticssupportservices | USD7,000,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenLiandaTugboatCo.,Ltd. | PRC | PRC | Logisticssupportservices | 200.00 | - | 60.29 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ZhangzhouZhongliOuterWheelTallyCo.,Ltd. | PRC | PRC | Logisticssupportservices | 200.00 | - | 84.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| XiamenwanPortAffairs(Note2) | PRC | PRC | Logisticssupportservices | 44,450.00 | - | 31.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ZhangzhouChinaMerchantsPortCo.,Ltd. | PRC | PRC | Logisticssupportservices | 116,700.00 | - | 60.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ZhangzhouChinaMerchantsTugboatCompanyLimited | PRC | PRC | Logisticssupportservices | 1,500.00 | - | 70.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsInternationalTechnologyCompanyLimited("CMIT") | PRC | PRC | ITservices | 8,784.82 | 13.18 | 43.74 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| DPN | PRC | PRC | ITservices | 3,200.00 | - | 79.03 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| YingkouGangxin | PRC | PRC | ITservices | 800.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ATJ | PRC | PRC | Preparationforwarehousingprojects | HKD100,000,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ASJ | PRC | PRC | Preparationforwarehousingprojects | HKD100,000,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| AnyunjiePortWarehousingService(Shenzhen)Co.,Ltd. | PRC | PRC | Preparationforwarehousingprojects | 6,060.00 | - | 80.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| YidePort | PRC | PRC | Logisticssupportservices | 21,600.00 | - | 51.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| MegaShekouContainerTerminalsLimited | BritishVirginIslands | BritishVirginIslands | Investmentholding | USD120.00 | - | 80.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| TML | Cyprus | Cyprus | Investmentholding | EUR5,000.00 | - | 50.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| CICT | SriLanka | SriLanka | Logisticssupportservices | USD150,000,100.00 | - | 85.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| LomeContainerTerminalS.A. | GovernmentofRepublicofTogo | GovernmentofRepublicofTogo | Logisticssupportservices | FCFA200,000,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| GainproResourcesLimited | BritishVirginIslands | BritishVirginIslands | Investmentholding | USD1.00 | - | 76.50 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenJinyuRongtaiInvestmentDevelopmentCo.,Ltd. | PRC | PRC | Leaseofpropertyetc. | 80,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenMerchantsQianhaiwanRealEstateCo.,Ltd. | PRC | PRC | Leaseofpropertyetc. | 20,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShantouPort | PRC | PRC | Logisticssupportservices | 12,500.00 | - | 60.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| HambantotaInternationalPortGroup(Private)Limited | SriLanka | SriLanka | Logisticssupportservices | USD794,000,000.00 | - | 85.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsHoldings(Djibouti)FZE | Djibouti | Djibouti | Logisticssupportservices | USD38,140,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| XindaResourcesLimited("Xinda") | BritishVirginIslands | BritishVirginIslands | Investmentholding | USD107,620,000.00 | - | 77.45 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| KongRiseDevelopmentLimited | HongKong,PRC | HongKong,PRC | Investmentholding | USD107,620,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
-129-
(X)EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(1)CompositionoftheGroup-continued
CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofthesubsidiary
| Nameofthesubsidiary | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB'0000,unlessotherwisespecified) | Proportionofownershipinterest(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| TCP | Brazil | Brazil | Logisticssupportservices | BRL68,851,600.00 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPort | PRC | PRC | Logisticssupportservices | 587,420.91 | 30.78 | 27.58 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortInternationalContainerTerminalCo.,Ltd | PRC | PRC | Logisticssupportservices | 60,000.00 | - | 80.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortPetrochemicalTerminalCo.,Ltd. | PRC | PRC | Logisticssupportservices | 18,000.00 | - | 50.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ChinaOceanShippingTallyCo.,Ltd.,Zhanjiang | PRC | PRC | Logisticssupportservices | 300.00 | - | 84.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortDonghaidaoBulkCargoTerminalCo.,Ltd. | PRC | PRC | Logisticssupportservices | 5,000.00 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| GuangdongZhanjiangPortLogisticsCo.,Ltd. | PRC | Shantou,PRC | Logisticssupportservices | 10,000.00 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortHaichuanTradingCo.,Ltd. | HongKong,PRC | HongKong,PRC | Logisticssupportservices | 200.00 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| NingboDaxie(Note3) | PRC | PRC | Logisticssupportservices | 1,20,909.00 | - | 45.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ShantouSeaportTugboatServiceCo.LTD | PRC | PRC | Logisticssupportservices | 1,000.00 | - | 100.00 | Investmentestablishment |
| GuangdongZhanjiangPortLongtengShippingCo.LTD | PRC | PRC | Logisticssupportservices | 9,000.00 | - | 70.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| DirecetAchieveInvestmentsLimited | HongKong,PRC | HongKong,PRC | Investmentholding | USD814,781,300.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| SanyaMerchantsPortDevelopmentCo.,Ltd. | PRC | PRC | Logisticssupportservices | 1,000.00 | 51.00 | - | Investmentestablishment |
| PortDevelopment(HongKong)(Note4) | HongKong,PRC | HongKong,PRC | Investmentholding | 2,768,291.56 | 100.00 | - | Investmentestablishment |
| MalaiStorage(Shenzhen)Co.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | HoldingQianhaiProperties | 139,914.10 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
Note1:On19June2018,theCompanyandChinaMerchantsGroup(HongKong)Co.,Ltd.
("CMHK")enteredinto"AgreementofConcertedActiononChinaMerchantsPortHoldingsCompanyLimited".Accordingtotheagreement,CMHKunconditionallykeepsconsistentwiththeCompanywhenvotingforthemattersdiscussedatthegeneralshareholdersmeetingofCMPortinrespectofitsvotingpowerofCMPortasentrusted,andperformsthevotingaspertheCompany'sopinion.InMarch2022,theCompanytransferredits43.00%equityinCMPorttoPortDevelopment(HongKong),awholly-ownedsubsidiaryinHongKong.Inthefirsthalfof2022,theCompanyandPortDevelopment(HongKong)purchased25,334,000ordinarysharesofCMPortviasecondarymarket.Afterthetransaction,theGroup'sordinarysharesinCMPortchangedfrom1,634,643,473sharesto1,659,977,473sharesandtheproportionofwhichtothetotalnumberofordinarysharesissuedwaschangedfrom43.18%to
43.85%.TheproportionofordinarysharesheldbyCMHKinCMPorttothetotalnumberofordinarysharesissuedwas21.98%.Therefore,theGroupholdsupto65.83%votingpowerofCMPortandisabletoexertcontroloverit.
-130-
(X)EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(1)CompositionoftheGroup-continuedNote2:TheGroupandChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.enteredinto
"EquityCustodyAgreement",accordingtowhichChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.entrustedits29.00%equityofZCMGtotheGroupforoperationandmanagement.Therefore,theGrouphas60.00%votingpowerofZCMGandincludesitinthescopeofconsolidatedfinancialstatements.Note3:CyberChicCompanyLimited,asubsidiaryoftheCompany,enteredintoaCooperation
AgreementwithNingboZhoushan,accordingtowhichCyberChicCompanyLimitedandNingboZhoushanwillnegotiateandcommunicatewitheachothertoreachaconcertedactionbeforeexercisingtheirshareholderrights.IntheeventthatbothpartiestotheAgreementfailtoreachaconsensusonmatterssuchastheoperationandmanagementofNingboDaxie,theopinionofCyberChicCompanyLimitedshallprevail.AfterthesigningoftheCooperationAgreement,CyberChicCompanyLimitedandNingboZhoushantogetherownmorethan50%equityofNingboDaxie.Therefore,theGroupisabletoexertcontroloveritandincludesitinthescopeofconsolidatedfinancialstatements.Note4:PortDevelopment(HongKong)isalimitedliabilitycompanyincorporatedbythe
Companyon16February2022inHongKong,thePRCandhasaregisteredcapitalequivalenttoRMB27,682,915,553.41.
(2)Materialnon-wholly-ownedsubsidiaries
CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofthesubsidiary
| Nameofthesubsidiary | Proportionofownershipinterestheldbytheminorityshareholders(%) | Profitorlossattributabletominorityshareholdersinthecurrentperiod | Dividendsdistributedtominorityshareholdersinthecurrentperiod | Balanceofminorityinterestsattheendoftheperiod |
| CMPort | 56.15 | 2,799,753,661.34 | 274,671,990.28 | 66,495,400,621.76 |
-131-
(X)EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(3)Significantfinancialinformationofmaterialnon-wholly-ownedsubsidiaries
CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofthesubsidiary
| Nameofthesubsidiary | Closingbalance | Openingbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| CMPort | 11,799,213,351.30 | 134,510,303,382.62 | 146,309,516,733.92 | 15,050,468,055.36 | 30,238,727,766.98 | 45,289,195,822.34 | 12,688,479,912.82 | 129,676,976,538.08 | 142,365,456,450.90 | 17,301,652,593.00 | 26,291,693,462.84 | 43,593,346,055.84 |
Nameofthesubsidiary
| Nameofthesubsidiary | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | ||||||
| Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| CMPort | 5,454,127,408.32 | 4,517,046,368.18 | 5,248,402,438.99 | 2,560,440,425.29 | 4,722,661,879.99 | 3,924,079,558.91 | 3,595,625,905.94 | 2,188,410,312.61 |
2.Transactionsresultinginchangesinownershipinterestsinsubsidiarieswithoutlosingcontroloverthesubsidiaries
(1)DescriptionofchangesinownershipinterestsinsubsidiariesSeeNote(X)1(1)fordetails.
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(X)EQUITYINOTHERENTITIES-continued
2.Transactionsresultinginchangesinownershipinterestsinsubsidiarieswithout
losingcontroloverthesubsidiaries-continued
(2)Effectoftransactiononminorityinterestsandowners'equityattributabletotheCompany
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | CMPort |
| Purchasecost | |
| -Cash | 287,664,615.60 |
| -Non-cashassets | - |
| Totalpurchasecost | 287,664,615.60 |
| Less:Shareofnetassetsofsubsidiariescalculatedaccordingtotheproportionofequityacquired | 527,510,282.18 |
| Difference | -239,845,666.58 |
| Including:Adjustedcapitalreserve | 239,845,666.58 |
| Adjustedsurplusreserve | - |
| Adjustedundistributedprofit | - |
3.Interestsinjointventuresandassociates
(1)Materialjointventuresorassociates
| Investee | Principalplaceofbusiness | Placeofregistration | Natureofbusiness | ProportionofownershipinterestsheldbytheGroup(%) | Accountingmethodofinvestmentsinassociates | |
| Direct | Indirect | |||||
| Associates | ||||||
| ShanghaiInternationalPort(Group)Co.,Ltd. | Shanghai,PRC | Shanghai,PRC | Portandcontainerterminalbusiness | - | 28.05 | Equitymethod |
-133-
(X)EQUITYINOTHERENTITIES-continued
4.Keyfinancialinformationofmaterialassociates
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | ShanghaiPortGroup | |
| Closingbalance/Amountincurredinthecurrentperiod | Openingbalance/Amountincurredinthepriorperiod | |
| Currentassets | 52,002,818,110.05 | 50,550,358,636.59 |
| Including:Cashandcashequivalents | 28,899,093,341.46 | 28,494,577,716.81 |
| Non-currentassets | 123,954,416,521.09 | 120,237,119,876.27 |
| Totalassets | 175,957,234,631.14 | 170,787,478,512.86 |
| Currentliabilities | 20,422,902,896.63 | 29,281,912,321.67 |
| Non-currentliabilities | 41,557,400,163.30 | 33,699,936,944.88 |
| Totalliabilities | 61,980,303,059.93 | 62,981,849,266.55 |
| Minorityinterests | 8,077,848,782.92 | 8,014,833,731.08 |
| EquityattributabletoshareholdersoftheCompany | 105,899,082,788.29 | 99,790,795,515.23 |
| Shareofnetassetscalculatedbasedontheproportionofownershipinterests | 29,715,282,630.39 | 26,584,267,925.26 |
| Adjustments | ||
| -Goodwill | 2,491,068,908.80 | 2,066,192,806.75 |
| -Others | -84,268,034.28 | 193,346,651.68 |
| Carryingamountsofequityinvestmentsinassociates | 32,122,083,504.91 | 28,843,807,383.69 |
| Fairvalueofpubliclyquotedequityinvestmentsinassociates | 38,077,553,886.35 | 33,990,040,779.28 |
| Operatingincome | 20,094,438,005.89 | 17,362,678,537.04 |
| Netprofit | 11,182,647,136.56 | 9,168,282,128.06 |
| Othercomprehensiveincome | -375,283,422.31 | -8,803,490.60 |
| Totalcomprehensiveincome | 10,807,363,714.25 | 9,159,478,637.46 |
| Dividendsreceivedfromassociatesinthecurrentyear | 1,240,949,440.54 | 793,927,959.22 |
5.Summarizedfinancialinformationofimmaterialassociatesandjointventures
| Closingbalance/Amountincurredinthecurrentperiod | Openingbalance/Amountincurredinthepriorperiod | |
| Jointventures: | ||
| Totalcarryingamountofinvestments | 9,490,794,161.58 | 8,540,003,758.64 |
| Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest | ||
| -Netprofit | 197,699,052.34 | 95,037,172.93 |
| -Othercomprehensiveincome | - | - |
| -Totalcomprehensiveincome | 197,699,052.34 | 95,037,172.93 |
| Associates: | ||
| Totalcarryingamountofinvestments | 32,928,324,041.67 | 32,969,640,682.19 |
| Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest | ||
| -Netprofit | 1,053,453,382.82 | 1,134,394,012.10 |
| -Othercomprehensiveincome | -96,067,083.31 | -53,669,400.39 |
| -Totalcomprehensiveincome | 957,386,299.51 | 1,080,724,611.71 |
6.TheinvesteeswheretheGroupholdslong-termequityinvestmentsarenotrestricted
totransferfundstotheGroup.
-134-
(XI)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS
1.CurrencyriskCurrencyriskistheriskthatlosseswilloccurbecauseofchangesinforeignexchangerates.TheGroup'sexposuretothecurrencyriskisprimarilyassociatedwithHKD,USDandEUR.Exceptforpartofthepurchasesandsales,theGroup'sotherprincipalactivitiesaredenominatedandsettledinRMB.Asat30June2021,thebalanceoftheGroup'sassetsandliabilitiesarebothdenominatedinfunctionalcurrency,exceptthattheassetsandliabilitiessetoutbelowarerecordedusingforeigncurrency.CurrencyriskarisingfromtheforeigncurrencybalanceofassetsandliabilitiesmayhaveimpactontheGroup'sperformance.
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Cashandbankbalances | 180,901,231.02 | 304,226,402.75 |
| Accountsreceivable | 45,066,576.46 | 37,640,821.94 |
| Otherreceivables | 741,492,337.28 | 292,001,737.01 |
| Short-termborrowings | 3,603,620,000.00 | 653,200,000.00 |
| Accountspayable | 1,463,775.57 | 3,534,444.32 |
| Otherpayables | 18,789,193.28 | 131,844,034.16 |
| Non-currentliabilitiesduewithinoneyear | - | 2,585,407,534.25 |
| Long-termborrowings | 670,000,000.00 | 670,000,000.00 |
TheGroupcloselymonitorstheeffectsofchangesintheforeignexchangeratesontheGroup'scurrencyriskexposures.Accordingtothecurrentriskexposureandjudgmentoftheexchangeratemovements,managementconsidersitisunlikelythattheexchangeratechangesinthefutureoneyearwillresultinsignificantlosstotheGroup.SensitivityanalysisoncurrencyriskTheassumptionforthesensitivityanalysisoncurrencyriskisthatallthecashflowhedgesandhedgesofanetinvestmentinaforeignoperationarehighlyeffective.Onthebasisoftheaboveassumption,whereallothervariablesareheldconstant,thereasonablypossiblechangesintheforeignexchangeratemayhavethefollowingpre-taxeffectontheprofitorlossfortheperiodandshareholders'equity:
| Item | Changesinexchangerate | Thecurrentperiod | Thepriorperiod | ||
| Effectonprofits | Effectonshareholders'equity | Effectonprofits | Effectonshareholders'equity | ||
| Allforeigncurrencies | 5%increaseagainstRMB | -142,170,160.72 | -142,170,160.72 | -37,283,559.46 | -37,283,559.46 |
| Allforeigncurrencies | 5%decreaseagainstRMB | 142,170,160.72 | 142,170,160.72 | 37,283,559.46 | 37,283,559.46 |
| Allforeigncurrencies | 5%increaseagainstUSD | 5,174,284.81 | 5,174,284.81 | 1,204,140.69 | 1,204,140.69 |
| Allforeigncurrencies | 5%decreaseagainstUSD | -5,174,284.81 | -5,174,284.81 | -1,204,140.69 | -1,204,140.69 |
| Allforeigncurrencies | 5%increaseagainstHKD | -208,703,403.25 | -208,703,403.25 | -161,772,050.17 | -161,772,050.17 |
| Allforeigncurrencies | 5%decreaseagainstHKD | 208,703,403.25 | 208,703,403.25 | 161,772,050.17 | 161,772,050.17 |
| Allforeigncurrencies | 5%increaseagainstEUR(includingFCFA) | 319,495.78 | 319,495.78 | 29,661,962.11 | 29,661,962.11 |
| Allforeigncurrencies | 5%decreaseagainstEUR(includingFCFA) | -319,495.78 | -319,495.78 | -29,661,962.11 | -29,661,962.11 |
-135-
(XI)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued
2.Interestraterisk-changesincashflowsRiskofchangesincashflowsoffinancialinstrumentsarisingfrominterestratechangesismainlyrelatedtobankloanswithfloatinginterestrate.(SeeNote(VIII)26andNote(VIII)36).TheGroupcontinuouslyandcloselymonitorstheimpactofinterestratechangesontheGroup'sinterestraterisk.TheGroup'spolicyistomaintaintheseborrowingsatfloatingrates.Presently,theGrouphasnoarrangementsuchasinterestrateswapsetc.SensitivityanalysisofinterestrateriskSensitivityanalysisofinterestrateriskisbasedonthefollowingassumptions:
?Fluctuationsofmarketinterestratecanaffecttheinterestincomeorexpenseofafinancial
instrumentwithfloatinginterestrate;?Forafinancialinstrumentatfairvaluewithfixedinterestrate,thefluctuationsofmarketinterest
ratecanonlyaffectitsinterestincomeorexpense;?Foraderivativefinancialinstrumentdesignatedashedginginstrument,thefluctuationsofmarket
interestrateaffectsitsfairvalue,andallinterestratehedgingareexpectedtobehighlyeffective;?Thechangesinfairvalueofderivativefinancialinstrumentsandotherfinancialassetsand
liabilitiesarecalculatedusingcashflowdiscountingmethodbyapplyingthemarketinterestrateat
balancesheetdate.Onthebasisofaboveassumptions,wheretheothervariablesheldconstant,thepre-taxeffectofpossibleandreasonablechangesininterestrateontheprofitorlossfortheperiodandshareholders'equityareasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Changesininterestrate | Thecurrentperiod | Thepriorperiod | ||
| Effectonprofits | Effectonshareholders'equity | Effectonprofits | Effectonshareholders'equity | ||
| Short-termborrowingsandlong-termborrowings | 1%increase | -206,916,565.57 | -206,916,565.57 | -103,396,518.44 | -103,396,518.44 |
| Short-termborrowingsandlong-termborrowings | 1%decrease | 206,916,565.57 | 206,916,565.57 | 103,396,518.44 | 103,396,518.44 |
3.LiquidityriskInthemanagementoftheliquidityrisk,theGroupmonitorsandmaintainsalevelofcashandcashequivalentsdeemedadequatebythemanagementtofinancetheGroup'soperationsandmitigatetheeffectsoffluctuationsincashflows.Themanagementmonitorstheutilizationofbankborrowingsandensurescompliancewithloancovenants.Asat30June2022,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsofRMB5,208,299,165.95.On30June2022,theGrouphadavailableandunusedlineofcreditamountingtoRMB62,195,186,155.77,whichisgreaterthanthebalanceofthenetcurrentliabilities.Therefore,theGroup'smanagementbelievesthattheGrouphasnosignificantliquidityrisk.
-136-
(XI)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued
3.Liquidityrisk-continuedThefollowingisthematurityanalysisforfinancialassetsandfinancialliabilitiesheldbytheGroupwhichisbasedonundiscountedremainingcontractualobligations:
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Carryingamount | Grossamount | Within1year | 1to5years | Over5years |
| Short-termborrowings | 15,482,279,719.62 | 15,701,949,471.86 | 15,701,949,471.86 | - | - |
| Notespayable | 9,089,940.00 | 9,089,940.00 | 9,089,940.00 | - | - |
| Accountspayable | 711,116,965.55 | 711,116,965.55 | 711,116,965.55 | - | - |
| Otherpayables | 3,485,085,782.19 | 3,485,085,782.19 | 3,485,085,782.19 | - | - |
| Non-currentliabilitiesduewithinoneyear | 2,725,550,249.97 | 2,931,506,934.63 | 2,931,506,934.63 | - | - |
| Othercurrentliabilities | 5,163,575,748.06 | 5,165,445,824.77 | 5,165,445,824.77 | - | - |
| Long-termborrowings | 7,577,041,256.64 | 8,501,656,958.55 | - | 6,691,876,951.47 | 1,809,780,007.08 |
| Bondspayable | 20,642,028,030.72 | 22,725,304,234.81 | - | 15,080,562,028.34 | 7,644,742,206.47 |
| Leaseliabilities | 1,060,180,377.44 | 1,730,589,221.49 | - | 497,661,544.57 | 1,232,927,676.92 |
| Long-termpayables | 3,669,169,313.03 | 3,718,817,760.80 | - | 321,077,054.36 | 3,397,740,706.44 |
(XII)DISCLOSUREOFFAIRVALUE
1.Closingbalanceofassetsandliabilitiesmeasuredatfairvalue
| Item | Fairvalueatclosingbalance | |||
| Level1 | Level2 | Level3 | Total | |
| Measurementsatfairvaluecontinuously | ||||
| Held-for-tradingfinancialassets | 157,609.38 | 5,272,751,702.75 | - | 5,272,909,312.13 |
| Receivablesfinancing | - | - | 191,399,515.52 | 191,399,515.52 |
| Otherequityinstrumentinvestments | - | - | 171,625,961.43 | 171,625,961.43 |
| Othernon-currentfinancialassets | 792,077,911.87 | - | 26,791,381.35 | 818,869,293.22 |
| Totalassetsmeasuredatfairvaluecontinuously | 792,235,521.25 | 5,272,751,702.75 | 389,816,858.30 | 6,454,804,082.30 |
2.Basisfordeterminingthemarketpriceofitemscontinuouslymeasuredatlevel1fair
valueThemarketpricesofheld-for-tradingfinancialassets,otherequityinstrumentinvestmentsandothernon-currentfinancialassetsaredeterminedattheclosingpriceoftheequityinstrumentatShanghaiStockExchangeandHongKongStockExchangeat30June2022.
3.Qualitativeandquantitativeinformationofvaluationtechniquesandkeyparameters
adoptedforitemscontinuouslymeasuredatlevel2fairvalue
| Item | Fairvalueattheendoftheperiod | Valuationtechniques | Inputs |
| Held-for-tradingfinancialassets | 5,272,751,702.75 | Cashflowdiscounting | Expectedrateofreturn |
Duringthevaluation,theGroupneedstomakeestimatesinrespectofmarketvolatilityandrelevanceetc.,selectappropriatediscountrateandtakeintoconsiderationofadjustmentofdiscountandpremium.
-137-
(XII)DISCLOSUREOFFAIRVALUE-continued
4.Qualitativeandquantitativeinformationofvaluationtechniquesandkeyparameters
adoptedforitemscontinuouslymeasuredatlevel3fairvalue
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Fairvalueattheendoftheperiod | Valuationtechniques | Inputs |
| Receivablesfinancing | 191,399,515.52 | Cashflowdiscounting | Discountrate |
| Otherequityinstrumentinvestments | 171,625,961.43 | Networthmethod | Carryingamount |
| Othernon-currentfinancialassets | 2,000,000.00 | Cashflowdiscounting | Discountrate |
| Othernon-currentfinancialassets | 680,887.72 | Networthmethod | Carryingamount |
| Othernon-currentfinancialassets | 24,110,493.63 | Listedcompanycomparisonapproach | Shareprice |
Thefairvalueofnon-listedequityinstrumentsincludedinequityinstrumentsatfairvaluethroughprofitorlossorothercomprehensiveincomeisdeterminedusingthevaluationtechniquessuchascashflowdiscountingmethod,networthmethod,listedcompanycomparisonapproachetc.Duringthevaluation,theGroupneedstomakeestimatesinrespectofthefuturecashflows,creditrisk,marketvolatilityandrelevanceetc.,selectappropriatediscountrateandtakeintoconsiderationofadjustmentofdiscountandpremium.
5.FairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalueThefinancialassetsandliabilitiesnotmeasuredatfairvaluemainlyinclude:notesreceivable,accountsreceivable,otherreceivables,short-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayableandlong-termpayablesetc.TheGroup'smanagementbelievesthatthecarryingamountsoffinancialassetsandfinancialliabilitiesatamortizedcostinthefinancialstatementsapproximatetheirfairvalues.Thefairvalueofbondspayabletradedinactivemarketisdeterminedatthequotedpriceintheactivemarket.Thefairvaluesoflong-termborrowings,long-termpayablesandbondspayablenottradedinactivemarketaredeterminedatthepresentvalueofcontractualfuturecashflowsdiscountedusingtheinterestrateforprovidingnearlythesamecashflowstoentitywithcomparablecreditratingunderthesameconditions.(XIII)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) |
-138-
(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
1.ParentoftheCompany-continuedNote:BroadfordGlobalLimiteddirectlyholds2.88%equityoftheCompany,andindirectly
holds19.29%and59.75%equityoftheCompanythroughthesubsidiariesChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.andChinaMerchantsPortInvestmentDevelopmentCo.,Ltd.(formerlyknownasChinaMerchantsInvestmentDevelopmentCo.,Ltd.)respectively.TheultimatecontrollingshareholderoftheCompanyisChinaMerchantsGroup.
2.SubsidiariesoftheCompanyDetailsofthesubsidiariesoftheCompanyaresetoutinNote(X)1.
3.AssociatesandjointventuresoftheCompanyDetailsoftheCompany'ssignificantjointventuresandassociatesaresetoutinNote(X)3.OtherjointventuresorjointventuresthatoccurredrelatedpartytransactionsandformedbalanceswiththeGroupthisyearareasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofjointventureorassociate
| Nameofjointventureorassociate | RelationshipwiththeCompany |
| PortofNewcastleanditssubsidiaries | Jointventure |
| GuizhouEastLandPortOperationCo.,Ltd. | Jointventure |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Jointventure |
| QingdaoQianwanNewUnitedContainerTerminalCo.,Ltd. | Jointventure |
| ChinaOceanShippingAgency(Zhanjiang)Co.,Ltd. | Jointventure |
| YantaiPortGroupLaizhouPortCo.,Ltd. | Jointventure |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Jointventure |
| QingdaoWutongCenturySupplyChainCo.,Ltd. | Jointventure |
| GreatHornDevelopmentCompanyFZCo | Associate |
| InternationalDjiboutiIndustrialParksOperationFZCo | Associate |
| PortdeDjiboutiS.A. | Associate |
| TerminalLinkSAS | Associate |
| Tin-CanIslandContainerTerminalLtd | Associate |
| GuizhouQiandongnanContinentalLandPortOperationCo.,Ltd. | Associate |
| NanshanGroupanditssubsidiaries | Associate |
| SIPG | Associate |
| ShenzhenBaohongTechnologyCo.,Ltd. | Associate |
| TianjinHaitianBondedLogisticsCo.,Ltd. | Associate |
| MerchantsPortCity | Associate |
| ZhanjiangXiagangUnitedDevelopmentCo.,Ltd. | Associate |
| ChuKongRiverTradeTerminalCo.,Ltd. | Associate |
| ShantouZhonglianTallyCo.,Ltd | Associate |
| ShantouInternationalContainerTerminalsLimited | Associate |
| ShenzhenBayElectricityIndustryCo.,Ltd. | Associate |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | Associate |
| LiaoningPortanditssubsidiaries | Associate,Controlledbythesameultimatecontrollingshareholder |
| NingboZhoushan | Associate |
| ShenzhenChiwanOrientalLogisticsCo.,Ltd. | Associate |
| DalianPortCommunicationsEngineeringCo.,Ltd. | Associate |
-139-
(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
4.OtherrelatedpartiesoftheCompany
CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofotherrelatedparties
| Nameofotherrelatedparties | RelationshipwiththeCompany |
| DjiboutiInternationalHotelCompany | Minorityshareholderofsubsidiary |
| ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd. | Minorityshareholderofsubsidiary |
| ZhoushanBlueOceanInvestmentCo.,Ltd. | Minorityshareholderofsubsidiary |
| ChinaCOSCOShippingGroupanditssubsidiaries(Note1) | Samerelatednaturalperson |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| HoiTung(Shanghai)CompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| SouthChinaSinotransSupplyChainManagementCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | Controlledbythesameultimatecontrollingshareholder |
| QingdaoBondedLogisticsParkSinotransWarehousingLogisticsCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| QingdaoSinotransSupplyChainManagementCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinotransShenzhenQianhaiSupplyChainManagementLtd. | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenWestPortSecurityServiceCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsInternationalShippingAgency(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsRealEstate(Shenzhen)Co.,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 |
| ChinaOceanShippingTallyShenzhenCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsGroupFinanceCompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinowayShippingLtd. | Controlledbythesameultimatecontrollingshareholder |
| CMPortChuangrong(Shenzhen)TechnologyCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinotransCentralChinaCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantFood(China)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinotransContainerLines(HongKong)CompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsZhangzhouDevelopmentZonePowerSupplyCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaTrafficImportandExportCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMarineShippingGuangdongCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| SinotransContainerLinesCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsHeavyIndustry(Jiangsu)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| Sinotrans(HK)ShippingLimited | Controlledbythesameultimatecontrollingshareholder |
| QingdaoSinotransMiningTechnologyCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| DalianContainerTerminalCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsSecuritiesCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsGangrongBigDataCo.,Ltd.(formerlyknownas"YingkouGangrongBigDataCo.,Ltd.") | Controlledbythesameultimatecontrollingshareholder |
| PanjinPortGroupCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaOceanShippingAgencyShenzhen | Controlledbythesameultimatecontrollingshareholder |
| ChinaMarineShippingAgencyNingboCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| LiaogangHolding(Yingkou)Co.,Ltd | Controlledbythesameultimatecontrollingshareholder |
| LiaoningElectronicPortCo.,Ltd | Controlledbythesameultimatecontrollingshareholder |
| YingkouNewPortOreTerminalCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| YingkouPortGroupanditssubsidiaries | Controlledbythesameultimatecontrollingshareholder |
| LiaoningPortGroupCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaYangtzeRiverShippingCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| YingkouPortGroupCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| DandongPortGroupCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| DalianPortContainer | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenNanyou(Holdings)Ltd. | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsApartmentDevelopment(Shenzhen)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| JifaLogistics | Controlledbythesameultimatecontrollingshareholder |
| OrientureHoldingsCompanyLimited | Controlledbythesameultimatecontrollingshareholder |
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(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
4.OtherrelatedpartiesoftheCompany-continued
CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofotherrelatedparties
| Nameofotherrelatedparties | RelationshipwiththeCompany |
| ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| DalianPortGroupCo.,Ltd. | Controlledbythesameultimatecontrollingshareholder |
| KhorAmbadoFZCo | Significantlyinfluencedbytheultimatecontrollingshareholder |
| ChinaMerchantsBankCo.,Ltd. | Significantlyinfluencedbytheultimatecontrollingshareholder |
| AntongHoldingsCo.,Ltd.anditssubordinatecompanies(Note2) | Otherrelatedparties |
Note1:TheCompany'sformerChairmanFuGangfeng(resignedon31January2020)workedas
thedirectorandgeneralmanagerofChinaCOSCOShippingCorporationLimitedwithin12monthsafterhisdeparture.Therefore,therelatedpartyrelationshipbetweentheCompanyandChinaCOSCOShippingCorporationLimitedexistsfrom31January2020to31January2021.Note2:FujianZhaohangLogisticsManagementPartnership(LimitedPartnership),whichisa
jointventureoftheCompany,isanactualcontrollerofAntongHoldingsCo.,Ltd.
5.Relatedpartytransactions
(1)Renderingandreceiptofservice
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Receiptofservice: | ||||
| ChinaMerchantsBankCo.,Ltd. | Purchaseofstructureddeposits | Negotiation | 1,000,000,000.00 | 1,000,000,000.00 |
| ShenzhenBayElectricityIndustryCo.,Ltd. | Serviceexpenditure | Negotiation | 27,561,760.64 | 23,540,775.37 |
| NanshanGroupanditssubsidiaries | Serviceexpenditure | Negotiation | 8,859,744.23 | 2,229,485.70 |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Serviceexpenditure | Negotiation | 8,365,470.62 | 7,456,011.20 |
| NingboZhoushan | Serviceexpenditure | Negotiation | 7,859,747.95 | - |
| ShenzhenWestPortSecurityServiceCo.,Ltd. | Serviceexpenditure | Negotiation | 5,661,635.33 | 4,195,429.30 |
| ShenzhenChiwanOrientalLogisticsCo.,Ltd. | Serviceexpenditure | Negotiation | 4,263,289.81 | 2,332,826.73 |
| HoiTung(Shanghai)CompanyLimited | Serviceexpenditure | Negotiation | 3,971,930.07 | 8,531,341.56 |
| YiuLianDockyardsLimited | Serviceexpenditure | Negotiation | 3,807,933.17 | 3,623,433.09 |
| ChinaMarineShippingGuangdongCo.,Ltd. | Serviceexpenditure | Negotiation | 2,578,833.07 | 1,542,016.89 |
| ChinaMerchantsZhangzhouDevelopmentZonePowerSupplyCo.,Ltd. | Serviceexpenditure | Negotiation | 2,443,269.20 | 2,166,324.95 |
| YingkouPortGroupanditssubsidiaries | Serviceexpenditure | Negotiation | 2,043,787.06 | 1,691,743.27 |
| ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd. | Serviceexpenditure | Negotiation | 1,921,021.77 | 2,679,300.52 |
| ChinaMarineShippingAgencyShenzhenCo.,Ltd. | Serviceexpenditure | Negotiation | 1,323,605.65 | 1,022,766.82 |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | Serviceexpenditure | Negotiation | 1,278,998.39 | 568,369.15 |
| ChinaOceanShippingTallyShenzhenCo.,Ltd. | Serviceexpenditure | Negotiation | 1,182,219.25 | 828,352.57 |
| ChinaMerchantFood(China)Co.,Ltd. | Serviceexpenditure | Negotiation | 219,125.15 | 1,201,759.76 |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd. | Serviceexpenditure | Negotiation | - | 1,559,726.18 |
| Otherrelatedparties | Serviceexpenditure | Negotiation | 6,018,119.16 | 6,234,466.92 |
| ChinaMerchantsGroupFinanceCompanyLimited | Interestpayments | Negotiation | 44,331,121.77 | 30,389,688.50 |
| ChinaMerchantsBankCo.,Ltd. | Interestpayments | Negotiation | 4,008,117.76 | 3,268,813.97 |
| NanshanGroupanditssubsidiaries | Propertyutilities | Negotiation | 245,927.93 | 290,902.36 |
| Total | 1,137,945,657.98 | 1,105,353,534.81 | ||
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(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(1)Renderingandreceiptofservice-continued
CHINAMERCHANTSPORTGROUPCO.,LTD.
Relatedparty
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Renderingofservice: | ||||
| ChinaMarineShippingAgencyNingboCo.,Ltd. | Servicerevenue | Negotiation | 106,096,787.01 | - |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | Servicerevenue | Negotiation | 93,854,144.35 | 88,294,684.14 |
| AntongHoldingsCo.,Ltd.anditssubordinatecompanies | Servicerevenue | Negotiation | 57,252,837.30 | 98,541,945.59 |
| LiaoningPortanditssubsidiaries | Servicerevenue | Negotiation | 50,771,513.32 | 19,864,136.94 |
| ChinaOceanShippingAgency(Zhanjiang)Co.,Ltd. | Servicerevenue | Negotiation | 29,767,054.90 | 25,067,430.42 |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | Servicerevenue | Negotiation | 28,379,378.60 | 38,552,309.99 |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Servicerevenue | Negotiation | 27,999,029.61 | 22,637,413.70 |
| YingkouPortGroupanditssubsidiaries | Servicerevenue | Negotiation | 25,735,822.73 | 16,175,416.62 |
| ChinaMerchantsInternationalShippingAgency(Shenzhen)Co.,Ltd. | Servicerevenue | Negotiation | 14,952,848.57 | 9,322,068.75 |
| YiuLianDockyards(Shekou)Limited | Servicerevenue | Negotiation | 7,624,158.50 | 7,465,890.54 |
| SinowayShippingLtd. | Servicerevenue | Negotiation | 6,695,198.11 | 51,910.38 |
| LiaoningPortGroupCo.,Ltd. | Servicerevenue | Negotiation | 4,971,803.76 | 6,851,108.81 |
| CMPortChuangrong(Shenzhen)TechnologyCo.,Ltd. | Servicerevenue | Negotiation | 4,622,170.92 | - |
| SinotransCentralChinaCo.,Ltd. | Servicerevenue | Negotiation | 4,226,183.28 | - |
| SinotransContainerLinesCo.,Ltd. | Servicerevenue | Negotiation | 4,203,154.01 | 137,305.63 |
| QingdaoBondedLogisticsParkSinotransWarehousingLogisticsCo.,Ltd. | Servicerevenue | Negotiation | 3,183,820.61 | 1,166,773.53 |
| ChinaOceanShippingAgencyShenzhen | Servicerevenue | Negotiation | 2,841,490.56 | 2,099,723.96 |
| ChinaYangtzeRiverShippingCo.,Ltd. | Servicerevenue | Negotiation | 2,750,508.20 | 2,133,440.00 |
| ChinaMarineShippingAgencyShenzhenCo.,Ltd. | Servicerevenue | Negotiation | 2,397,694.66 | 2,818,483.03 |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | Servicerevenue | Negotiation | 2,053,124.00 | 3,453,502.00 |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Servicerevenue | Negotiation | 2,006,982.68 | 1,724,078.14 |
| SinotransContainerLines(HongKong)CompanyLimited | Servicerevenue | Negotiation | 1,694,057.81 | 1,277,956.30 |
| QingdaoQianwanNewUnitedContainerTerminalCo.,Ltd. | Servicerevenue | Negotiation | 1,538,691.31 | 1,446,408.10 |
| GuizhouQiandongnanContinentalLandPortOperationCo.,Ltd. | Servicerevenue | Negotiation | 1,447,018.87 | 651,707.54 |
| ChinaMerchantsPortInvestmentDevelopmentCompanyLimited | Servicerevenue | Negotiation | 1,327,585.66 | 280,430.34 |
| ShantouZhonglianTallyCo.,Ltd | Servicerevenue | Negotiation | 1,177,326.80 | 2,033,121.99 |
| SinotransShenzhenQianhaiSupplyChainManagementLtd. | Servicerevenue | Negotiation | 1,055,634.00 | 3,679,093.79 |
| ShenzhenBaohongTechnologyCo.,Ltd.(formerlyknownas | Servicerevenue | Negotiation | 1,051,551.12 | 5,643,062.05 |
| YantaiPortGroupLaizhouPortCo.,Ltd. | Servicerevenue | Negotiation | 1,037,735.84 | 1,006,226.41 |
| SouthChinaSinotransSupplyChainManagementCo.,Ltd. | Servicerevenue | Negotiation | 886,573.85 | 1,277,958.26 |
| ShantouInternationalContainerTerminalsLimited | Servicerevenue | Negotiation | 481,962.75 | 2,257,929.61 |
| GuizhouEastLandPortOperationCo.,Ltd. | Servicerevenue | Negotiation | 423,517.06 | 2,046,879.50 |
| ChinaMerchantsGangrongBigDataCo.,Ltd. | Servicerevenue | Negotiation | 313,073.74 | 2,332,986.53 |
| ChinaMerchantsHeavyIndustry(Jiangsu)Co.,Ltd. | Servicerevenue | Negotiation | 299,871.32 | 1,494,112.80 |
| ChinaMarineShippingGuangdongCo.,Ltd. | Servicerevenue | Negotiation | 263,547.18 | 1,066,579.80 |
| Sinotrans(HK)ShippingLimited | Servicerevenue | Negotiation | 66,202.55 | 1,391,042.72 |
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(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(1)Renderingandreceiptofservice-continued
CHINAMERCHANTSPORTGROUPCO.,LTD.
Relatedparty
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Renderingofservice:-continued | ||||
| ChinaCOSCOShippingGroupanditssubsidiaries | Servicerevenue | Negotiation | - | 67,594,546.16 |
| NingboZhoushan | Servicerevenue | Negotiation | - | 6,777,410.02 |
| Otherrelatedparties | Servicerevenue | Negotiation | 5,978,857.08 | 8,010,716.33 |
| ChinaMerchantsBankCo.,Ltd. | Interestincome | Negotiation | 23,990,575.31 | 27,709,063.52 |
| ChinaMerchantsGroupFinanceCompanyLimited | Interestincome | Negotiation | 10,308,105.49 | 16,044,336.39 |
| TerminalLinkSAS | Interestincome | Negotiation | 81,787,132.97 | 83,985,071.35 |
| PortofNewcastleanditssubsidiaries | Interestincome | Negotiation | 30,137,869.75 | 32,103,266.39 |
| MerchantsPortCity | Interestincome | Negotiation | - | 1,957,067.27 |
| Otherrelatedparties | Interestincome | Negotiation | 777,053.20 | 823,676.39 |
| Total | 648,429,649.34 | 619,248,271.73 |
(2)LeaseswithrelatedpartiesTheGroupasthelessor:
| Nameofthelessee | Typeofleasedassets | Pricingmethodanddecisionproceduresofrelatedtransactions | Leaseincomerecognizedinthecurrentperiod | Leaseincomerecognizedinthepriorperiod |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Portandwharffacilities | Negotiation | 5,069,188.08 | 4,815,722.20 |
| ChinaMerchantFood(China)Co.,Ltd. | Buildings | Negotiation | 2,773,119.96 | 2,641,029.00 |
| ChinaTrafficImportandExportCo.,Ltd. | Buildings | Negotiation | 2,736,536.28 | 2,606,198.16 |
| QingdaoSinotransMiningTechnologyCo.,Ltd. | Portandwharffacilities | Negotiation | 2,375,278.56 | - |
| QingdaoBondedLogisticsParkSinotransWarehousingLogisticsCo.,Ltd. | Buildings | Negotiation | 1,914,400.91 | 2,825,722.88 |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Buildings | Negotiation | 1,453,403.34 | 1,504,168.98 |
| ChinaMerchantsSecuritiesCo.,Ltd. | Buildings | Negotiation | 1,270,897.29 | 1,239,270.84 |
| NanshanGroupanditssubsidiaries | Buildings | Negotiation | 1,135,355.02 | 1,205,711.40 |
| YiuLianDockyards(Shekou)Limited | Buildings | Negotiation | 1,091,340.94 | 1,180,174.54 |
| QingdaoSinotransSupplyChainManagementCo.,Ltd. | Buildings | Negotiation | 561,911.99 | 1,947,099.43 |
| Otherrelatedparties | Buildings,landuserights | Negotiation | 3,151,714.13 | 3,688,390.75 |
| Total | 23,533,146.50 | 23,653,488.18 |
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(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(2)Leaseswithrelatedparties-continuedTheGroupasthelessee:
CHINAMERCHANTSPORTGROUPCO.,LTD.
Nameofthelessor
| Nameofthelessor | Typeofleasedassets | Rentforshort-termleasesandleasesoflowvalueassetsthatisaccountedforusingsimplifiedapproach | Variableleasepaymentnotincludedinthemeasurementofleaseliabilities | Rentpaid | Interestexpensesonleaseliabilitiesassumed | Increaseinright-of-useassets | |||||
| Amountincurredincurrentperiod | Amountincurredinpriorperiod | Amountincurredincurrentperiod | Amountincurredinpriorperiod | Amountincurredincurrentperiod | Amountincurredinpriorperiod | Amountincurredincurrentperiod | Amountincurredinpriorperiod | Amountincurredincurrentperiod | Amountincurredinpriorperiod | ||
| DalianPortGroupCo.,Ltd. | Buildings | 71,337.12 | 66,840.00 | 71,337.12 | 66,840.00 | 74,904.00 | 70,182.00 | - | - | - | - |
| DalianPortCommunicationsEngineeringCo.,Ltd. | Buildings | - | - | - | - | 3,356,220.00 | 3,134,472.00 | 125,995.63 | 258,056.46 | - | 1,774,387.48 |
| NanshanGroupanditssubsidiaries | Buildings | - | - | - | - | - | - | 4,862.54 | 6,137.91 | - | - |
| NanshanGroupanditssubsidiaries | Portandwharffacilities | - | - | - | - | - | 3,210,410.33 | 299,721.13 | 100,375.41 | 17,330,062.14 | 16,868,278.07 |
| NanshanGroupanditssubsidiaries | Others | - | - | - | - | 32,049,532.79 | 32,049,532.79 | 2,248,991.92 | 3,577,717.89 | - | - |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | Portandwharffacilities | - | - | - | - | 18,076,245.95 | 18,973,411.00 | 2,033,491.49 | 2,938,091.59 | - | - |
| ShenzhenNanyou(Holdings)Ltd. | Landuserights | 997,776.60 | 997,776.57 | - | - | 873,054.50 | - | - | - | - | - |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd. | Buildings | - | - | - | - | - | - | - | 759,302.63 | 66,214,506.44 | - |
| ChinaMerchantsApartmentDevelopment(Shenzhen)Co.,Ltd. | Buildings | - | - | - | - | 29,249,729.17 | 30,666,305.55 | 4,141,464.12 | 5,561,951.70 | - | - |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | Buildings | 188,604.84 | 416,500.00 | - | - | 199,921.13 | 441,490.00 | - | - | - | - |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | Buildings | 3,262,409.54 | 2,557,225.48 | 1,729,077.06 | 1,057,349.26 | 1,729,077.06 | 1,653,309.75 | - | - | - | - |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | Portandwharffacilities | - | - | - | - | 29,492,822.34 | 30,956,617.95 | 3,317,801.93 | 4,793,730.40 | - | - |
| ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd. | Portandwharffacilities | - | - | - | - | - | - | 5,682.95 | 6,391.01 | - | - |
| ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd. | Machineryandequipment,portandwharffacilities | - | - | - | - | 1,773,985.94 | 1,828,611.70 | 141,650.14 | 213,576.01 | 1,079,443.53 | - |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | Portandwharffacilities | 11,040.00 | 1,599,423.42 | - | - | 242,028.00 | 29,611,475.78 | 3,915,561.44 | 3,203,467.47 | 81,529,585.77 | - |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | Portandwharffacilities | - | - | - | - | - | - | 32,692.70 | - | - | - |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | Landuserights | - | - | - | - | 7,943,326.82 | 4,306,269.69 | 298,580.40 | 298,580.40 | - | - |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | Machineryandequipment | - | - | - | - | 1,097,438.83 | 977,789.94 | 127,512.83 | 112,028.64 | 2,377,742.19 | - |
| Total | 4,531,168.10 | 5,637,765.47 | 1,800,414.18 | 1,124,189.26 | 126,158,286.53 | 157,879,878.48 | 16,694,009.22 | 21,829,407.52 | 168,531,340.07 | 18,642,665.55 | |
-144-
(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(3)RelatedpartyguaranteesTheGroupastheguarantor
CHINAMERCHANTSPORTGROUPCO.,LTD.Securedparty
| Securedparty | Creditline | Guaranteedamount | Commencementdate | Maturitydate | Theguaranteehasbeencompletedornot |
| Fortheperiodfrom1Januaryto30June2022 | |||||
| TerminalLinkSAS(Note1) | 68,508,952.47 | 68,508,952.47 | 11June2013 | 2033 | No |
| KhorAmbadoFZCo(Note2) | 192,528,000.00 | 115,901,056.33 | 24May2019 | 2032 | No |
| Total | 261,036,952.47 | 184,410,008.80 | |||
| Fortheperiodfrom1Januaryto30June2021 | |||||
| TerminalLinkSAS(Note1) | 67,144,809.51 | 67,144,809.51 | 1June2013 | 2033 | No |
| KhorAmbadoFZCo(Note2) | 186,692,802.05 | 112,388,291.40 | 24May2019 | 2032 | No |
| Total | 253,837,611.56 | 179,533,100.91 | |||
Note1:CMACGMS.A.isanothershareholderofTerminalLinkSAS,anassociateofthe
Group.TheGrouphasmadeacommitmenttoCMACGMS.A.thattheGroupwillprovidesguaranteeforitsbankloanfinancingtotheassociateTerminalLinkSASandotherliabilitiestotheextentoftheGroup's49%ownershipinterestinthecompany.TheactualguaranteedamountisRMB68,508,952.47on30June2022.Ifanyguaranteeliabilityoccurs,theGroupwillcompensateCMACGMS.A.Note2:KhorAmbadoFZCoisarelatedcompanyoftheGroup'scommonultimatecontrolling
shareholder.TheGroupprovidesguaranteeforitsbankloansandotherliabilities,withactualguaranteedamountofRMB115,901,056.33asat30June2022.
(4)Borrowingsandloanswithrelatedparties
| Relatedparty | Amount | Commencementdate | Maturitydate | Description |
| Fortheperiodfrom1Januaryto30June2022 | ||||
| Borrowings | ||||
| ChinaMerchantsGroupFinanceCompanyLimited | 40,000,000.00 | 11March2022 | 10March2023 | Fixedinterestrateof3.3500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 40,000,000.00 | 14April2022 | 14April2023 | Fixedinterestrateof3.3500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 30,030,833.33 | 15February2022 | 14February2023 | Fixedinterestrateof3.7000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 20,000,000.00 | 12May2022 | 11May2023 | Fixedinterestrateof3.3500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,070,095.89 | 4March2022 | 31August2022 | Fixedinterestrateof2.1500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,054,271.23 | 30March2022 | 26September2022 | Fixedinterestrateof2.1300% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,008,767.12 | 15June2022 | 12December2022 | Fixedinterestrateof2.0000% |
| Total | 160,163,967.57 | |||
-145-
(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(4)Borrowingsandloanswithrelatedparties-continued
CHINAMERCHANTSPORTGROUPCO.,LTD.
Relatedparty
| Relatedparty | Amount | Commencementdate | Maturitydate | Description |
| Fortheperiodfrom1Januaryto30June2021 | ||||
| Borrowings | ||||
| ChinaMerchantsGroupFinanceCompanyLimited | 197,112,248.22 | 1March2021 | 21June2024 | Fixedinterestrateof1.2000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 80,661,051.60 | 17May2021 | 12March2029 | Fixedinterestrateof4.5100% |
| ChinaMerchantsGroupFinanceCompanyLimited | 58,800,000.00 | 8April2021 | 31October2023 | Fixedinterestrateof1.2000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 50,044,968.20 | 11June2021 | 10June2022 | Fixedinterestrateof3.8500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 47,050,263.90 | 9April2021 | 8April2022 | Fixedinterestrateof3.8500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 33,029,679.02 | 25June2021 | 24June2022 | Fixedinterestrateof3.8500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 30,030,917.00 | 10May2021 | 9May2022 | Fixedinterestrateof3.7100% |
| ChinaMerchantsGroupFinanceCompanyLimited | 20,021,388.90 | 19April2021 | 18April2022 | Fixedinterestrateof3.8500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,075,542.47 | 7June2021 | 4December2021 | Fixedinterestrateof2.5500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,016,767.12 | 22March2021 | 18September2021 | Fixedinterestrateof2.7300% |
| Total | 536,842,826.43 | |||
(5)Assettransferwithrelatedparties
| RelatedParty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| HoiTung(Shanghai)CompanyLimited | Machineryandequipment | Negotiation | - | 1,371,681.42 |
(6)Compensationforkeymanagementpersonnel
| Item | Closingbalance | Openingbalance |
| Compensationforkeymanagementpersonnel | 7,241,617.16 | 8,523,459.60 |
-146-
(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
6.Amountsduefrom/torelatedparties
(1)Amountsduefromrelatedparties
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Relatedparty | Closingbalance | Openingbalance |
| Cashandbankbalances | ChinaMerchantsBankCo.,Ltd. | 3,876,849,179.07 | 2,563,011,212.30 |
| ChinaMerchantsGroupFinanceCompanyLimited | 1,553,110,447.21 | 2,178,303,655.54 | |
| Total | 5,429,959,626.28 | 4,741,314,867.84 | |
| Held-for-tradingfinancialassets | ChinaMerchantsBankCo.,Ltd. | 1,000,000,000.00 | 901,314,575.34 |
| Accountsreceivable | COSCOLogistics(Zhanjiang)Co.,Ltd. | 18,069,327.33 | 5,211,554.51 |
| DalianContainerTerminalCo.,Ltd. | 14,133,025.92 | 330,000.60 | |
| AntongHoldingsCo.,Ltd.anditssubordinatecompanies | 14,004,165.13 | 13,014,575.59 | |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | 7,929,275.99 | 1,049,999.99 | |
| YiuLianDockyards(Shekou)Limited | 7,152,087.50 | 4,414,431.20 | |
| LiaoningPortanditssubsidiaries | 7,111,862.00 | 1,414,964.00 | |
| SinowayShippingLtd. | 6,033,843.55 | 512,749.94 | |
| ChinaMerchantsInternationalShippingAgency(Shenzhen)Co.,Ltd. | 4,078,736.57 | 1,341,323.72 | |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | 4,018,282.21 | 2,315,131.88 | |
| PanjinPortGroupCo.,Ltd. | 3,207,250.15 | 1,467,000.00 | |
| KhorAmbadoFZCo | 2,983,812.58 | 2,842,053.59 | |
| LiaogangHolding(Yingkou)Co.,Ltd | 2,900,944.06 | 857,597.32 | |
| QingdaoSinotransMiningTechnologyCo.,Ltd. | 2,494,652.53 | - | |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | 2,346,438.25 | 1,970,902.79 | |
| GreatHornDevelopmentCompanyFZCo | 2,125,705.50 | 2,606,831.64 | |
| LiaoningElectronicPortCo.,Ltd | 1,900,047.95 | - | |
| YingkouNewPortOreTerminalCo.,Ltd. | 1,843,785.93 | 150,552.57 | |
| PortDeDjiboutiS.A. | 1,699,661.25 | 1,618,911.45 | |
| ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd. | 1,533,840.00 | - | |
| YingkouPortGroupCo.,Ltd. | 1,439,433.15 | 3,333,618.62 | |
| SinotransContainerLinesCo.,Ltd. | 1,379,961.75 | 1,436,388.75 | |
| ChinaOceanShippingAgencyShenzhen | 1,185,087.09 | 1,418,539.82 | |
| ChinaMarineShippingAgencyNingboCo.,Ltd. | 1,130,408.10 | 6,502,287.89 | |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd. | 1,000,608.00 | 642,585.00 | |
| Sinotrans(HK)ShippingLimited | 126,979.95 | 1,068,888.42 | |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | 47,379.74 | 1,215,660.73 | |
| Otherrelatedparties | 35,704,830.88 | 9,753,701.53 | |
| Total | 147,581,433.06 | 66,490,251.55 | |
| Dividendsreceivable | SIPG | 1,240,949,440.54 | - |
| NanshanGroupanditssubsidiaries | 314,619,000.00 | 185,070,000.00 | |
| LiaoningPortanditssubsidiaries | 73,133,008.80 | - | |
| MerchantsPortCity | 41,847,044.77 | 41,847,044.77 | |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | 18,403,959.77 | 18,403,959.77 | |
| Tin-CanIslandContainerTerminalLtd | - | 19,076,909.00 | |
| Otherrelatedparties | 485,820.79 | 277,072.09 | |
| Total | 1,689,438,274.67 | 264,674,985.63 |
-147-
(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
6.Amountsduefrom/torelatedparties-continued
(1)Amountsduefromrelatedparties-continued
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Relatedparty | Closingbalance | Openingbalance |
| Otherreceivables | ChuKongRiverTradeTerminalCo.,Ltd. | 32,953,940.00 | 32,953,940.00 |
| PortdeDjiboutiS.A. | 23,564,625.00 | 22,681,372.48 | |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd. | 6,310,000.00 | 6,000,000.00 | |
| ChinaMerchantsShenzhenRo-RoShippingCo.,Ltd. | 2,899,163.95 | 2,899,163.95 | |
| ZhoushanBlueOceanInvestmentCo.,Ltd. | 2,899,163.95 | 4,996,989.39 | |
| NanshanGroupanditssubsidiaries | 1,789,094.72 | 129,239.70 | |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | 1,439,734.12 | 1,380,231.20 | |
| InternationalDjiboutiIndustrialParksOperationFZCO | 1,356,431.95 | 377,571.40 | |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | 1,132,846.40 | 1,132,846.40 | |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | 122,122.00 | 2,190,539.40 | |
| ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd. | - | 4,907,365.06 | |
| ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd. | - | 5,000,000.00 | |
| Otherrelatedparties | 4,434,660.52 | 6,210,835.23 | |
| Total | 78,901,782.61 | 90,860,094.21 | |
| Advancepayment | Otherrelatedparties | 759,688.13 | - |
| Non-currentassetsduewithinoneyear | PortofNewcastleanditssubsidiaries | 90,299,558.08 | 60,029,243.30 |
| TerminalLinkSAS | 44,546,075.28 | 42,429,677.59 | |
| Total | 134,845,633.36 | 102,458,920.89 | |
| Long-termreceivables | ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd. | 6,200,000.00 | - |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 4,447,962.42 | 10,000,000.00 | |
| TerminalLinkSAS | 2,813,436,329.08 | 2,679,769,106.42 | |
| PortofNewcastleanditssubsidiaries | 754,563,615.00 | 750,086,910.62 | |
| TianjinHaitianBondedLogisticsCo.,Ltd. | 34,300,000.00 | 34,300,000.00 | |
| Total | 3,612,947,906.50 | 3,474,156,017.04 | |
| Othernon-currentassets | ChinaTrafficImportandExportCo.,Ltd. | 20,854,077.98 | 20,854,077.98 |
(2)Amountsduetorelatedparties
| Item | Relatedparty | Closingbalance | Openingbalance |
| Short-termborrowings | ChinaMerchantsGroupFinanceCompanyLimited | 2,291,960,833.31 | 3,393,366,381.96 |
| Othercurrentliabilities | ChinaMerchantsGroupFinanceCompanyLimited | 30,133,134.24 | 10,012,082.19 |
| Accountspayable | AntongHoldingsCo.,Ltd.anditssubordinatecompanies | 20,554,000.00 | - |
| NanshanGroupanditssubsidiaries | 11,149,297.83 | 3,154,427.56 | |
| ShenzhenBayElectricityIndustryCo.,Ltd. | 6,712,820.33 | 4,987,709.79 | |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | 5,448,274.23 | 6,742,200.79 | |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | 2,568,871.37 | 3,142,704.91 | |
| HoiTung(Shanghai)CompanyLimited | 1,676,281.00 | 72,436.00 | |
| NingboZhoushan | 1,638,149.08 | 1,159,307.43 | |
| YiuLianDockyardsLimited | 1,393,066.07 | 2,651,200.00 | |
| DjiboutiInternationalHotelCompany | 1,022,577.71 | 179,738.97 | |
| Otherrelatedparties | 3,522,506.78 | 3,483,956.79 | |
| Total | 55,685,844.40 | 25,573,682.24 | |
| Receiptsinadvance | QingdaoWutongCenturySupplyChainCo.,Ltd. | 2,885,541.70 | - |
| Otherrelatedparties | 760,032.04 | 53,057.84 | |
| Total | 3,645,573.74 | 53,057.84 |
-148-
(XIII)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
6.Amountsduefrom/torelatedparties-continued
(2)Amountsduetorelatedparties-continued
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Relatedparty | Closingbalance | Openingbalance |
| Contractliabilities | DalianContainerTerminalCo.,Ltd. | 6,118,133.20 | 3,573,179.78 |
| ShenzhenBaohongTechnologyCo.,Ltd. | 3,378,575.24 | - | |
| SinotransShenzhenQianhaiSupplyChainManagementLtd. | 3,072,517.64 | - | |
| COSCOLogistics(Zhanjiang)Co.,Ltd. | 2,016,731.30 | 346,980.78 | |
| DandongPortGroupCo.,Ltd. | 1,461,375.20 | 568,527.60 | |
| ChinaMarineShippingAgencyGuangdongCo.,Ltd. | 1,249,802.47 | - | |
| QingdaoSinotransSupplyChainManagementCo.,Ltd. | 411,914.60 | 1,578,302.00 | |
| AntongHoldingsCo.,Ltd.anditssubordinatecompanies | 132,332.60 | 1,994,209.18 | |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | 69,890.00 | 1,050,000.00 | |
| Otherrelatedparties | 2,488,115.17 | 1,981,553.30 | |
| Total | 20,399,387.42 | 11,092,752.64 | |
| DividendsPayable | NingboZhoushan | 100,465,755.99 | - |
| ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd. | 99,560,234.06 | - | |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd. | 20,000,000.00 | 20,000,000.00 | |
| DalianPortContainer | 16,549,264.69 | 18,349,264.69 | |
| ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd. | 14,474,539.30 | - | |
| JifaLogistics | 4,945,967.80 | 4,945,967.80 | |
| OrientureHoldingsCompanyLimited | 1,839,672.00 | - | |
| Total | 257,835,433.84 | 43,295,232.49 | |
| Otherpayables | ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd. | 10,079,369.00 | 10,079,369.00 |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | 7,255,835.12 | 7,839,816.47 | |
| AntongHoldingsCo.,Ltd.anditssubordinatecompanies | 4,743,266.37 | 8,077,252.00 | |
| TerminalLinkSAS | 4,105,385.52 | 3,910,337.39 | |
| ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd. | 3,727,609.61 | 7,417,802.54 | |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | 3,210,410.34 | - | |
| HoiTung(Shanghai)CompanyLimited | 1,660,600.00 | 655,300.00 | |
| SinotransShenzhenQianhaiSupplyChainManagementLtd. | 1,621,810.64 | 1,579,720.16 | |
| ZhanjiangXiagangUnitedDevelopmentCo.,Ltd. | 1,439,753.57 | 1,433,473.84 | |
| ChinaMerchantFood(China)Co.,Ltd. | 1,069,017.00 | 1,069,017.00 | |
| PortdeDjiboutiS.A. | - | 254,894,592.46 | |
| Otherrelatedparties | 6,730,409.63 | 4,763,928.21 | |
| Total | 45,643,466.80 | 301,720,609.07 | |
| Non-currentliabilitiesduewithinoneyear | ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd. | 103,754,749.25 | 104,204,701.37 |
| NanshanGroupanditssubsidiaries | 88,946,448.13 | 56,174,150.92 | |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | 52,966,076.31 | 60,639,407.07 | |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 36,421,930.07 | 32,788,124.97 | |
| ChinaMerchantsGroupFinanceCompanyLimited | 15,811,016.33 | 27,106,533.22 | |
| EuroAsiaDockyardEnterpriseandDevelopmentLimited | 6,893,253.20 | 13,030,256.95 | |
| ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd. | 3,140,860.68 | 6,029,278.06 | |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | 1,236,523.87 | 961,513.13 | |
| ChinaMerchantsBankCo.,Ltd. | 204,600.00 | 4,227,333.34 | |
| Total | 309,375,457.84 | 305,161,299.03 | |
| Othernon-currentliabilities | NanshanGroupanditssubsidiaries. | 5,948,975.01 | 1,020,381.51 |
| Leaseliabilities | ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd. | 126,666,879.79 | 177,500,213.13 |
| NanshanGroupanditssubsidiaries | 100,517,065.26 | 58,651,209.31 | |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 31,666,736.63 | 47,500,069.97 | |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | 22,603,365.11 | 44,730,575.22 | |
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd. | 20,496,911.80 | - | |
| ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited | 777,192.38 | 1,353,404.41 | |
| Otherrelatedparties | 358,612.01 | 181,987.02 | |
| Total | 303,086,762.98 | 329,917,459.06 | |
| Long-termborrowings | ChinaMerchantsGroupFinanceCompanyLimited | 540,140,693.27 | 543,744,022.45 |
| ChinaMerchantsBankCo.,Ltd. | 198,000,000.00 | 196,000,000.00 | |
| Total | 738,140,693.27 | 739,744,022.45 |
-149-
(XIV)SHARE-BASEDPAYMENTS
1.Summaryofshare-basedpayments
CHINAMERCHANTSPORTGROUPCO.,LTD.TotalnumberoftheCompany'sequityinstrumentsgrantedduringtheperiod
| TotalnumberoftheCompany'sequityinstrumentsgrantedduringtheperiod | None |
| TotalnumberoftheCompany'sequityinstrumentsvestedduringtheperiod | None |
| TotalnumberoftheCompany'sequityinstrumentslapsedduringtheperiod | None |
| RangeofexercisepricesandremainingcontractuallifeoftheCompany'sshareoptionsoutstandingattheendoftheperiod | ExercisepriceisRMB15.09toRMB17.34;remainingcontractuallifeis55months |
| RangeofexercisepricesandremainingcontractuallifeoftheCompany'sotherequityinstrumentsoutstandingattheendoftheperiod | None |
2.Equity-settledshare-basedpayments
| Themethodofdeterminingthefairvalueofequityinstrumentsatthegrantdate | TheBlack-Scholesmodelisadoptedtoestimatethecostofgrantedstockoptions |
| Themethodofdeterminingthebestestimateofthenumberofequityinstrumentsexpectedtobevested | Oneachassetandliabilitydateinthewaitingperiod,thebestestimateismadeandthenumberofequityinstrumentsexpectedtobevestedisrevisedbasedonthelatestobtainedfollow-upinformationsuchaschangesinthenumberofvestedemployees. |
| Reasonsforthesignificantdifferencebetweentheestimateinthecurrentperiodandthatinthepriorperiod | Criteriaofexercisinginexerciseperiodofbatch1arenotsatisfied |
| Amountsofequity-settledshare-basedpaymentsaccumulatedincapitalreserve | 13,405,215.31 |
| Totalexpensesrecognizedarisingfromequity-settledshare-basedpayments | 5,964,644.61 |
PursuanttotheOfficialReplyontheImplementationoftheStockOptionIncentivePlanofChinaMerchantsPortGroupCo.,Ltd.byState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil,(No.748[2019],SASAC),andwhichwasdeliberatedandapprovedbythe1stExtraordinaryGeneralMeetingoftheCompanyin2020on3February2020,theCompanygranted238incentiverecipients17,198,000stockoptionswithanexercisepriceofRMB17.80pershare.Withalockupperiodof24monthsfromthegrantingdate,theshareoptionsareexercisableuponexpiryofthe24-monthlockupperiodinthepremisethatthevestingconditionsaresatisfied.Theshareoptionsareexercisableinthreebatches,specifically40%forthefirstbatch(after24monthsbutwithin36monthssubsequenttothegrantingdate),30%forthesecondbatch(after36monthsbutwithin48monthssubsequenttothegrantingdate);30%forthethirdbatch(after48monthsbutwithin84monthssubsequenttothegrantingdate);eachshareoptionrepresentstherighttosubscribeashareofordinaryshareoftheCompany.
-150-
(XIV)SHARE-BASEDPAYMENTS-continued
2.Equity-settledshare-basedpayments-continuedAccordingtoArticle32ofStockOptionIncentivePlan,sincethegrantdateofthestockoption,iftheCompanydistributesdividendspriortotheexerciseoftheoption,theexercisepriceshallbeadjustedaccordingly.Therefore,theCompanyuniformlyadjustedtheexercisepricefromRMB17.34pershareto16.96pershareon29January2022inrespectofthefirstbatchofstockoptiongrantedunderstockoptionincentiveplan(phaseI).On5March2021,thegrantingofstockoption(reservedportion)understockoptioninventiveplan(phaseI)wascompleted.Thereservedportionofstockoptiontargetstototal3persons,granting530,000sharesofstockoptionwithexercisepriceofRMB15.09pershare.Thegrantingdateis29January2021.On29January2022,theCompanyadjustedtheexercisepriceofthereservedportionofstockoptiontoRMB14.71pershare.Withalockupperiodof24monthsfromthegrantingdate,theshareoptionsareexercisableuponexpiryofthe24-monthlockupperiodinthepremisethatthevestingconditionsaresatisfied.Theshareoptionsareexercisableintwobatches,specifically50%forthefirstbatch(after24monthsbutwithin36monthssubsequenttothegrantingdate),andtheremaining50%forthesecondbatch(after36monthsbutwithin72monthssubsequenttothegrantingdate);eachshareoptionrepresentstherighttosubscribeashareofordinaryshareoftheCompany.On14February2022,theCompanycancelled6,380,000stockoptionscorrespondingtothefirstexerciseperiodofthestockoption(initiallygrantedbatch)understockoptioninventiveplan(phaseI)oftheCompanybecausethevestingconditionsofthefirstexerciseperiodofthestockoption(initiallygrantedbatch)understockoptioninventiveplan(phaseI)oftheCompanyhavenotbeenfulfilled.Since10recipientstotheincentiveplanretiredorceasedtobeemployedbytheCompany,thecorresponding1.248millionstockoptionswerecancelled.(XV)COMMITMENTSANDCONTINGENCIES
1.Significantcommitments
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Commitmentsthathavebeenenteredintobuthavenotbeenrecognizedinthefinancialstatements | ||
| -Commitmenttoinjectcapitalininvestees | 42,747,324.72 | 211,620,680.00 |
| -Commitmenttoacquirelong-termassets | 1,863,192,595.34 | 1,755,687,773.54 |
| -Commitmenttoinvestportconstruction | 5,347,994.64 | 5,093,914.88 |
| -Others | - | - |
| Total | 1,911,287,914.70 | 1,972,402,368.42 |
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(XV)COMMITMENTSANDCONTINGENCIES-continued
2.Contingencies
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Contingentliabilitiesarisingfromlitigations(Note1) | 240,631,161.74 | 207,807,928.33 |
| Guaranteesforborrowingsofassociates(Note2) | 184,410,008.80 | 175,517,115.86 |
| Total | 425,041,170.54 | 383,325,044.19 |
Note1:Thisrepresentsthesignificantcontingentliabilitiesarisingfromthelitigationsbetween
TCPanditssubsidiariesandlocaltaxauthority,employeeorformeremployeeofTCPanditssubsidiariesinBrazilasat30June2022.AccordingtothelatestestimatesoftheGroup'smanagement,thepossiblecompensationisRMB240,631,161.74butitisnotlikelytocauseoutflowofeconomicbenefitsfromtheGroup.Therefore,thecontingentliabilitiesarisingfromtheabovependinglitigationsarenotrecognizedasprovisions.Thecounter-bonificationwheretheGroupasthebeneficiarywillbeexecutedbytheformerTCPshareholderthatdisposedtheshares.Accordingtothecounter-bonificationagreement,theformerTCPshareholderneedtomakecounter-bonificationtotheGroupinrespectoftheabovecontingentliabilities,withthecompensationamountnotexceedingpre-determinedamountandspecifiedperiod.Note2:Asof30June2022,theguaranteesprovidedbytheGrouptorelatedpartiesaresetoutin
NoteXIII5(3).Asof30June2022,theGroup'sdirectorsassessedtheriskofdefaultbyrelatedpartiesinrespectofaboveloansandotherliabilities.Thedirectorsbelievethattheriskisimmaterialandthereisminorpossibilityoflossduetotheguarantee.Asof30June2022,inadditiontoaforesaidcontingencies,theGrouphadnoothersignificantguaranteeorcontingenciesthatneedtobeexplained.(XVI)OTHERSIGNIFICANTEVENTS
1.Segmentreporting
(1)BasisfordeterminingreportingsegmentsandaccountingpoliciesThekeymanagementteamoftheCompanyisregardedastheCODM,whoreviewstheGroup'sinternalreportsinordertoassessperformance,allocateresourcesanddeterminetheoperatingsegments.IndividualoperatingsegmentsforwhichdiscretefinancialinformationisavailableareidentifiedbytheCODMandareoperatedbytheirrespectivemanagementteams.TheseindividualoperatingsegmentsareaggregatedinarrivingatthereportingsegmentsoftheGroup.Frombusinessandfinancialperspectives,managementassessestheperformanceoftheGroup'sbusinessoperationsincludingportsoperation,bondedlogisticsoperationandotheroperations.
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(XVI)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(1)Basisfordeterminingreportingsegmentsandaccountingpolicies-continuedPortsoperationPortsoperationincludescontainerterminaloperation,bulkandgeneralcargoterminaloperationoperatedbytheGroupanditsassociatesandjointventures.TheGroup'sportsoperationisreportedasfollows:
(a)MainlandChina,HongKongandTaiwan?PearlRiverDelta?YangtzeRiverDelta?BohaiRim?Others(b)OtherlocationsoutsideofMainlandChina,HongKongandTaiwanBondedlogisticsoperationBondedlogisticsoperationincludeslogisticsparkoperation,portstransportationandairportcargohandlingoperatedbytheGroupanditsassociatesandjointventures.OtheroperationsOtheroperationsmainlyincludepropertydevelopmentandinvestmentandconstructionofmodularhousingoperatedbytheGroup'sassociates,propertyinvestmentoperatedbytheGroupandcorporatefunction.Eachofthesegmentsunderportsoperationincludetheoperationsofanumberofportsinvariouslocationswithinonegeographiclocation,eachofwhichisconsideredasaseparateoperatingsegmentbytheCODM.Forthepurposeofsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedintoreportablesegmentsongeographicbasisinordertopresentamoresystematicandstructuredsegmentinformation.Togivedetailsofeachoftheoperatingsegments,intheopinionofthedirectorsoftheCompany,wouldresultinparticularsofexcessivelength.Bondedlogisticsoperationandotheroperationsincludeanumberofdifferentoperations,eachofwhichisconsideredasaseparatebutinsignificantoperatingsegmentbytheCODM.Forsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedaccordingtothenaturesoftheiroperationstogiverisetomoremeaningfulpresentation.Therearenomaterialsalesorothertransactionsbetweenthesegments.TherevenuefromamajorcustomerofportsoperationamountstoRMB792,737,726.08representing9.73%(Fortheperiodfrom1Januaryto30June2021:11.39%)oftheGroup'soperatingincomefortheperiodfrom1Januaryto30June2022.
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(XVI)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)SegmentfinancialinformationSegmentfinancialinformationfortheperiodfrom1Januaryto30June2022isasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Portsoperation | Bondedlogisticsoperation | Others | Unallocatedamount | Total | |||||
| MainlandChina,HongKongandTaiwan | Otherlocations | Sub-total | ||||||||
| PearlRiverDelta | YangtzeRiverDelta | BohaiRim | Others | |||||||
| Operatingincome | 3,437,254,973.24 | 649,729,096.28 | 33,866,877.90 | 1,822,644,054.87 | 1,929,566,724.83 | 7,873,061,727.12 | 209,325,133.72 | 68,075,506.35 | - | 8,150,462,367.19 |
| Operatingcost | 1,791,680,082.04 | 343,952,485.60 | 28,294,068.61 | 1,360,000,630.46 | 857,769,752.09 | 4,381,697,018.80 | 140,757,242.05 | 114,914,620.80 | - | 4,637,368,881.65 |
| Segmentoperatingprofit(loss) | 1,645,574,891.20 | 305,776,610.68 | 5,572,809.29 | 462,643,424.41 | 1,071,796,972.74 | 3,491,364,708.32 | 68,567,891.67 | -46,839,114.45 | - | 3,513,093,485.54 |
| Adjustments: | ||||||||||
| Taxesandlevies | 17,161,332.92 | 1,358,396.15 | 762,863.49 | 23,747,540.44 | 67,784,031.58 | 110,814,164.58 | 12,788,139.20 | 11,850,114.01 | 62,122.28 | 135,514,540.07 |
| Administrativeexpense | 270,644,263.09 | 17,935,889.67 | 4,250,850.13 | 237,984,292.95 | 122,959,475.16 | 653,774,771.00 | 21,787,475.08 | 446,314.03 | 136,494,100.44 | 812,502,660.55 |
| R&Dexpenses | 85,639,559.26 | 20,872,358.80 | - | 8,321,260.44 | - | 114,833,178.50 | - | - | - | 114,833,178.50 |
| Financialexpenses | 276,346,849.08 | 659,765.82 | 7,690,043.58 | 57,874,751.32 | 165,538,736.00 | 508,110,145.80 | 6,188,760.36 | 19,390,223.92 | 818,255,917.59 | 1,351,945,047.67 |
| Otherincome | 35,886,617.08 | 1,815,528.87 | 4,938.74 | 32,722,306.05 | - | 70,429,390.74 | 14,863,880.13 | 2,187,553.78 | - | 87,480,824.65 |
| Investmentincome(losses) | 222,407,406.65 | 3,122,887,164.02 | 154,507,069.27 | 9,989,435.08 | 767,552,861.09 | 4,277,343,936.11 | 6,389,216.81 | 60,318,392.00 | 11,222,220.57 | 4,355,273,765.49 |
| Gains(losses)fromchangesinfairvalue | 79,496,786.92 | -95,524,728.92 | -21,842,804.35 | 412.59 | - | -37,870,333.76 | - | -155,778.82 | - | -38,026,112.58 |
| Impairmentgains(losses)ofcredit | -1,942,682.66 | - | - | 4,342,920.16 | 482,175.11 | 2,882,412.61 | - | - | - | 2,882,412.61 |
| Impairmentgainsofassets | - | - | - | - | - | - | - | - | - | - |
| Gainsfromdisposalofassets | -32,342.56 | - | - | -346,988.65 | 61,853.55 | -317,477.66 | 110,201.29 | - | - | -207,276.37 |
| Operatingprofit(loss) | 1,331,598,672.28 | 3,294,128,164.21 | 125,538,255.75 | 181,423,664.49 | 1,483,611,619.75 | 6,416,300,376.48 | 49,166,815.26 | -16,175,599.45 | -943,589,919.74 | 5,505,701,672.55 |
-154-
(XVI)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)Segmentfinancialinformation-continuedSegmentfinancialinformationfortheperiodfrom1Januaryto30June2022isasfollows:-continued
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Portsoperation | Bondedlogisticsoperation | Others | Unallocatedamount | Total | |||||
| MainlandChina,HongKongandTaiwan | Otherlocations | Sub-total | ||||||||
| PearlRiverDelta | YangtzeRiverDelta | BohaiRim | Others | |||||||
| Non-operatingincome | 6,425,934.28 | 2,180,354.30 | - | 4,974,803.02 | 3,493,529.85 | 17,074,621.45 | 11,941.39 | 910,887.14 | 2,195,476.41 | 20,192,926.39 |
| Non-operatingexpenses | 250,767.85 | 476,966.36 | - | 1,129,049.42 | 18,400,674.66 | 20,257,458.29 | 10,000.00 | - | - | 20,267,458.29 |
| Grossprofit(loss) | 1,337,773,838.71 | 3,295,831,552.15 | 125,538,255.75 | 185,269,418.09 | 1,468,704,474.94 | 6,413,117,539.64 | 49,168,756.65 | -15,264,712.31 | -941,394,443.33 | 5,505,627,140.65 |
| Incometaxexpenses | 305,390,922.81 | 177,758,958.64 | 10,748,969.92 | 31,804,010.22 | 73,012,182.85 | 598,715,044.44 | 8,837,765.12 | 17,616,830.97 | 474,076.89 | 625,643,717.42 |
| Netprofit(loss) | 1,032,382,915.90 | 3,118,072,593.51 | 114,789,285.83 | 153,465,407.87 | 1,395,692,292.09 | 5,814,402,495.20 | 40,330,991.53 | -32,881,543.28 | -941,868,520.22 | 4,879,983,423.23 |
| Segmentassets | 27,200,944,019.41 | 42,754,860,411.26 | 7,681,007,278.79 | 27,461,201,359.53 | 43,427,644,360.77 | 148,525,657,429.76 | 3,186,498,586.20 | 19,088,328,467.89 | 11,638,089,677.23 | 182,438,574,161.08 |
| Totalassetsinthefinancialstatements | 182,438,574,161.08 | |||||||||
| Segmentliabilities | 11,511,357,979.79 | 1,812,382,983.01 | 159,992,555.78 | 7,366,101,644.17 | 8,063,092,335.40 | 28,912,927,498.15 | 559,051,005.65 | 1,163,813,908.80 | 38,601,130,095.90 | 69,236,922,508.50 |
| Totalliabilitiesinthefinancialstatements | 69,236,922,508.50 | |||||||||
| Supplementaryinformation: | ||||||||||
| DepreciationandAmortization | 559,603,223.95 | 100,562,353.38 | 442,056.80 | 413,612,906.24 | 388,560,970.07 | 1,462,781,510.44 | 44,104,972.79 | 95,688,815.80 | 14,164,397.97 | 1,616,739,697.00 |
| Interestincome | 49,017,244.18 | 1,761,808.44 | 241,384.75 | 13,886,086.48 | 136,859,829.48 | 201,766,353.33 | 616,620.57 | 734,545.62 | 9,703,269.85 | 212,820,789.37 |
| Interestexpense | 294,081,375.30 | 925,454.87 | - | 66,577,626.64 | 286,248,544.77 | 647,833,001.58 | 6,767,316.18 | 13,811,624.52 | 472,585,487.39 | 1,140,997,429.67 |
| Investmentincomefromlong-termequityinvestmentunderequitymethod | 137,319,816.05 | 3,085,589,502.22 | 144,254,258.27 | 9,749,433.61 | 767,552,861.09 | 4,144,465,871.24 | 6,389,216.81 | 60,318,392.00 | - | 4,211,173,480.05 |
| Long-termequityinvestmentunderequitymethod | 4,537,827,361.63 | 35,644,874,787.82 | 6,786,848,134.06 | 521,301,077.63 | 12,364,270,383.84 | 59,855,121,744.98 | 966,678,378.30 | 13,719,401,584.88 | - | 74,541,201,708.16 |
| Non-currentassetsotherthanlong-termequityinvestment | 18,589,927,373.04 | 4,126,822,152.28 | 16,269,568.95 | 21,389,451,171.39 | 24,316,735,231.09 | 68,439,205,496.75 | 1,906,626,843.14 | 4,780,752,262.04 | 476,415,762.85 | 75,603,000,364.78 |
-155-
(XVI)OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)Segmentfinancialinformation-continuedTheGroup'srevenuebygeographicalareasofoperationsandinformationaboutitsnon-currentassetsotherthanfinancialinstrumentsanddeferredtaxassetspresentedbasedonthegeographicalareasinwhichtheassetsarelocatedasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.
Revenuefromexternaltransactions
| Revenuefromexternaltransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| MainlandChina,HongKongandTaiwan | 6,200,189,217.85 | 5,552,294,281.37 |
| PearlRiverDelta | 3,622,864,022.12 | 3,181,051,472.13 |
| YangtzeRiverDelta | 649,729,096.28 | 445,352,534.85 |
| BohaiRim | 104,952,044.58 | 90,680,819.77 |
| Others | 1,822,644,054.87 | 1,835,209,454.62 |
| Otherlocations | 1,950,273,149.34 | 1,787,648,580.89 |
| Total | 8,150,462,367.19 | 7,339,942,862.26 |
Totalnon-currentassets
| Totalnon-currentassets | Closingbalance | Openingbalance |
| MainlandChina,HongKongandTaiwan | 112,655,827,248.04 | 109,645,185,780.08 |
| PearlRiverDelta | 46,892,708,473.86 | 45,414,657,732.10 |
| YangtzeRiverDelta | 36,473,533,205.13 | 34,860,356,989.30 |
| BohaiRim | 7,334,807,498.12 | 7,318,137,784.88 |
| Others | 21,954,778,070.93 | 22,052,033,273.80 |
| Otherlocations | 37,488,374,824.90 | 35,806,732,228.78 |
| Total | 150,144,202,072.94 | 145,451,918,008.86 |
(3)DegreeofrelianceonmajorcustomersThetotaloperatingincomederivedfromthetopfiveclientsoftheGroupisRMB1,873,612,820.56,accountingfor22.99%oftheGroup'stotaloperatingincome.(XVII)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS
1.Otherreceivables
(1)Summaryofotherreceivables
| Item | Closingbalance | Openingbalance |
| Dividendsreceivable | 241,273,334.61 | 177,295,422.67 |
| Otherreceivables | 1,289,050,051.27 | 1,079,447,548.34 |
| Total | 1,530,323,385.88 | 1,256,742,971.01 |
-156-
(XVII)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-
continued
1.Otherreceivables-continued
(2)Dividendsreceivable(a)Disclosureofdividendsreceivable
CHINAMERCHANTSPORTGROUPCO.,LTD.Companyname
| Companyname | Closingbalance | Openingbalance |
| ChiwanWharf(HongKong) | 147,680,363.88 | 147,680,363.88 |
| DongguanChiwanTerminalCo.,Ltd. | 51,235,537.37 | 13,691,538.79 |
| DongguanChiwanWarfCo.,Ltd. | 18,111,237.23 | - |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | 15,707,120.00 | 15,707,120.00 |
| CMPort | 8,322,676.13 | - |
| ShenzhenPetrochemicalIndustry(Group)Co.,Ltd. | 216,400.00 | 216,400.00 |
| Total | 241,273,334.61 | 177,295,422.67 |
| Less:Provisionforcreditloss | - | - |
| Carryingamount | 241,273,334.61 | 177,295,422.67 |
(b)Significantdividendsreceivableagingover1year
| Item | Closingbalance | Aging | Openingbalance | Reasonforoutstanding | Impairedornot |
| ChiwanWharf(HongKong) | 147,680,363.88 | Morethan1yearbutnotexceeding2years | 147,680,363.88 | Proceduresarebeinghandledanditisexpectedtoberecoveredin2022 | No |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | 15,707,120.00 | Over3years | 15,707,120.00 | Proceduresarebeinghandledanditisexpectedtoberecoveredin2022 | No |
| Total | 163,387,483.88 | 163,387,483.88 |
(3)Otherreceivables(a)Disclosureofotherreceivablesbyaging
| Aging | Closingbalance | ||
| Otherreceivables | Provisionforcreditloss | Proportionofprovision(%) | |
| Within1year | 286,720,001.11 | - | - |
| 1to2years | 177,643,366.12 | - | - |
| 2to3years | 358,965,341.32 | - | - |
| Over3years | 466,104,799.32 | 383,456.60 | 0.08 |
| Total | 1,289,433,507.87 | 383,456.60 | —— |
(b)ProvisionforcreditlossofotherreceivablesAspartoftheCompany'screditriskmanagement,theCompanyperformsinternalcreditratingoncustomers,anddeterminestheexpectedlossratioofotherreceivablesundereachcreditrating.Suchexpectedaveragelossratioisbasedonhistoricalactualimpairmentandtakingintoconsiderationofcurrentandexpectedfutureeconomicconditions.
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(XVII)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued
1.Otherreceivables-continued
(3)Otherreceivables-continued(b)Provisionforcreditlossofotherreceivables-continuedAt30June2022,thecreditriskandexpectedcreditlossofotherreceivablesbycategoriesofcustomersareasfollows:
CHINAMERCHANTSPORTGROUPCO.,LTD.Creditrating
| 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 | 1,289,050,051.27 | - | - | 1,289,050,051.27 | 1,079,447,548.34 | - | - | 1,079,447,548.34 |
| 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 | 1,289,050,051.27 | - | 383,456.60 | 1,289,433,507.87 | 1,079,447,548.34 | - | 383,456.60 | 1,079,831,004.94 | |
| Provisionforcreditloss | - | - | 383,456.60 | 383,456.60 | - | - | 383,456.60 | 383,456.60 | |
| Bookvalue | 1,289,050,051.27 | - | - | 1,289,050,051.27 | 1,079,447,548.34 | - | - | 1,079,447,548.34 | |
-158-
(XVII)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-
continued
1.Otherreceivables-continued
(3)Otherreceivables-continued(c)Changesinprovisionforcreditlossofotherreceivables
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Stage1 | Stage2 | Stage3 | Total |
| 12-monthECL | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | ||
| Balanceat1January2022 | - | - | 383,456.60 | 383,456.60 |
| Carryingamountofotherreceivablesat1January2022 | ||||
| --transfertostage2 | - | - | - | - |
| --transfertostage3 | - | - | - | - |
| --transferbacktostage2 | - | - | - | - |
| --transferbacktostage1 | - | - | - | - |
| Provisionfortheperiod | - | - | - | - |
| Reversal | - | - | - | - |
| Transferoutduetoderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | - | - |
| Balanceat30June2022 | - | - | 383,456.60 | 383,456.60 |
(d)Changesincarryingamountofotherreceivables
| Carryingamount | Stage1 | Stage2 | Stage3 | Total |
| 12-monthECL | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | ||
| Balanceat1January2022 | 1,079,447,548.34 | - | 383,456.60 | 1,079,831,004.94 |
| Transferinthecurrentyear: | ||||
| --transfertostage2 | - | - | - | - |
| --transfertostage3 | - | - | - | - |
| --transferbacktostage2 | - | - | - | - |
| --transferbacktostage1 | - | - | - | - |
| Increase | 209,602,502.93 | - | - | 209,602,502.93 |
| Derecognition | - | - | - | - |
| Otherchanges | - | - | - | - |
| Balanceat30June2022 | 1,289,050,051.27 | - | 383,456.60 | 1,289,433,507.87 |
(e)TheCompanyhasnorecoveryorreversalofsignificantcreditlossallowanceinthe
currentyear.
-159-
(XVII)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-
continued
1.Otherreceivables-continued
(3)Otherreceivables-continued(f)Otherreceivablesbynature
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Closingbalance | Openingbalance |
| Amountsduefromrelatedparties | 1,277,594,227.98 | 1,072,941,653.53 |
| Advances | 4,810,136.67 | 4,741,428.81 |
| Others | 7,029,143.22 | 2,147,922.60 |
| Total | 1,289,433,507.87 | 1,079,831,004.94 |
| Less:Provisionforcreditloss | 383,456.60 | 383,456.60 |
| Bookvalue | 1,289,050,051.27 | 1,079,447,548.34 |
(g)Thereisnootherreceivableswrite-offduringthisperiod.(h)Thetopfivebalancesofotherreceivablesclassifiedbydebtor
| Companyname | RelationshipwiththeCompany | Nature | Closingbalance | Aging | Proportionoftheamounttothetotalotherreceivable(%) | Closingbalanceofprovisionforcreditloss |
| ShenzhenHaixing | Subsidiary | Loantorelatedparties | 1,277,594,227.98 | Within1year;Morethan1yearbutnotexceeding2years;Morethan2yearsbutnotexceeding3years;Morethan3years | 99.08 | - |
| GuangDongUnitedAssetsandEquityExchange | Thirdparty | Others | 5,000,000.00 | Within1year | 0.39 | - |
| CMIT | Subsidiary | Temporarypayments | 2,467,600.00 | Within1year | 0.19 | - |
| Paymentofsocialsecurityandenterpriseannuityonbehalfofemployees | Thirdparty | Temporarypayments | 2,342,536.67 | Within1year | 0.18 | - |
| ShenzhenTaxService,ShekouOffice | Subsidiary | Others | 711,772.07 | Morethan3years | 0.06 | 383,456.60 |
| Total | 1,288,116,136.72 | 99.90 | 383,456.60 |
-160-
(XVII)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued
2.Long-termequityinvestments
CHINAMERCHANTSPORTGROUPCO.,LTD.
Investee
| Investee | 1/1/2022 | Changesfortheperiod | 30/6/2022 | Closingbalanceofimpairmentprovision | |||||||
| Increase | Decrease | Investmentincomeunderequitymethod | Reconcilingitemsfromothercomprehensiveincome | Otherequitymovements | Announceddistributionofcashdividendsorprofit | Impairmentprovision | Effectofchangesinforeignexchange | ||||
| 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 | - |
| ChiwanWharf(HongKong) | 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 | - |
| ShenchiwanPortAffairs | 186,525,000.00 | - | - | - | - | - | - | - | - | 186,525,000.00 | - |
| DongguanChiwanWarfCo.,Ltd. | 175,000,000.00 | - | - | - | - | - | - | - | - | 175,000,000.00 | - |
| ChiwanShipping(HongKong)Limited | 1,051,789.43 | - | - | - | - | - | - | - | - | 1,051,789.43 | - |
| CMPort(Note1) | 29,290,281,157.45 | 77,941,666.53 | -29,203,045,325.40 | - | - | - | - | - | - | 165,177,498.58 | - |
| ZhoushanRoRoTerminal | 149,709,800.00 | - | - | - | - | - | - | - | - | 149,709,800.00 | - |
| Zhanjiangport | 3,381,825,528.52 | - | - | - | - | - | - | - | - | 3,381,825,528.52 | - |
| ChinaMerchantsInternationalInformationTechnologyCo.,Ltd. | 20,561,075.02 | - | - | - | - | - | - | - | - | 20,561,075.02 | - |
| SanyaMerchantsPortDevelopmentCo.,Ltd. | 2,040,000.00 | - | - | - | - | - | - | - | - | 2,040,000.00 | - |
| PortDevelopment(HongKong)(Note2) | - | 29,203,045,326.23 | - | - | - | - | - | - | - | 29,203,045,326.23 | - |
| Sub-total | 34,115,791,361.36 | 29,280,986,992.76 | -29,203,045,325.40 | - | - | - | - | - | - | 34,193,733,028.72 | - |
| II.Associate | |||||||||||
| ChinaMerchantsBondedLogisticsCo.,Ltd. | 395,249,112.00 | - | - | 6,333,600.61 | - | - | - | - | - | 401,582,712.61 | - |
| ChinaMerchantsNortheastAsiaDevelopmentInvestmentCo.,Ltd. | 1,016,048,532.69 | - | - | 3,357,030.81 | - | - | - | - | - | 1,019,405,563.50 | - |
| NingboZhoushan | 1,792,998,234.68 | - | - | 64,801,085.35 | -1,388,999.70 | 1,337,524.70 | -39,140,468.28 | - | - | 1,818,607,376.75 | - |
| Sub-total | 3,204,295,879.37 | - | - | 74,491,716.77 | -1,388,999.70 | 1,337,524.70 | -39,140,468.28 | - | - | 3,239,595,652.86 | - |
| III.Jointventure | |||||||||||
| YantaiPortGroupLaizhouPortCo.,Ltd. | 791,515,741.44 | - | - | 22,069,427.08 | - | - | -29,259,207.08 | - | - | 784,325,961.44 | - |
| ChinaMerchantsAntongLogisticsManagementCompany | 9,727,878.94 | - | - | 67,008.50 | - | - | - | - | - | 9,794,887.44 | - |
| FujianZhaohangLogisticsManagementPartnership(LimitedPartnership) | 511,210,432.62 | - | - | 40,938,797.77 | - | - | - | - | - | 552,149,230.39 | - |
| InvestmentFund(Note3) | - | 1,085,852.21 | -1,047,401.66 | -38,450.55 | - | - | - | - | - | - | - |
| ShenzhenGangtengInternetTechnologyCo.,Ltd.(Note4) | - | 11,250,000.00 | - | -643,233.29 | - | - | - | - | - | 10,606,766.71 | - |
| Sub-total | 1,312,454,053.00 | 12,335,852.21 | -1,047,401.66 | 62,393,549.51 | - | - | -29,259,207.08 | - | - | 1,356,876,845.98 | - |
| Total | 38,632,541,293.73 | 29,293,322,844.97 | -29,204,092,727.06 | 136,885,266.28 | -1,388,999.70 | 1,337,524.70 | -68,399,675.36 | - | - | 38,790,205,527.56 | - |
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(XVII)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-
continued
2.Long-termequityinvestments-continuedNote1:DetailsaresetoutinNote(X)1.Note2:DetailsaresetoutinNote(X)1.(1).Note3:On24December2020,theCompanyestablishedanInvestmentFundjointlywithChina
MerchantsVentureInvestmentManagementCo.,Ltd.("MerchantsVenture"),arelatedpartyoftheCompany,andShenzhenChinaMerchantsInnovationInvestmentFundCenter(LimitedPartnership)("MerchantsInnovationFund"),whichwasmanagedbyMerchantsVenture,completedthefilingwiththeAssetManagementAssociationofChinaon22October2021andobtainedtheCertificateofFilingforPrivateInvestmentFund.InviewofthefactthattheInvestmentFundhasnotyetcommencedactualinvestmentactivities,andconsideringtheoverallplanningoftheCompany'scapitaloperation,on8January2022,theCompany,MerchantsVentureandMerchantsInnovationFundagreedtodissolvetheInvestmentFundandgothroughthecorrespondingliquidationandcancellationprocedures.Note4:ShenzhenGangtengInternetTechnologyCo.,Ltd.isajointventureestablishedbythe
Company,ShenzhenTencentIndustryVentureCapitalCo.,Ltd.,CMIT,ShenzhenHaixingandShenzhenZhigangBilinInternetTechnologyPartnership(LimitedPartnership)on24January2021,withacapitalcontributionofRMB11,250,000.00paidbytheCompanyon23February2022.
3.Operatingincomeandoperatingcosts
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principaloperating | - | 1,132,979.70 | - | 1,132,979.75 |
| Otheroperating | - | - | 471,974.86 | - |
| Total | - | 1,132,979.70 | 471,974.86 | 1,132,979.75 |
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(XVII)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-
continued
4.Investmentincome
(1)Detailsofinvestmentincome
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Incomefromlong-termequityinvestmentsundercostmethod | 546,403,227.17 | 912,418,115.63 |
| Long-termequityinvestmentsincomeunderequitymethod | 136,885,266.28 | 86,382,211.38 |
| Incomefromotherequityinstrumentsinvestments | - | 460,000.00 |
| Investmentincomefromdisposaloflong-termequityinvestments | -43,817.42 | - |
| Incomefromheld-for-tradingfinancialassets | 79,627,913.70 | - |
| Incomefromdebtinvestments | - | 6,017,068.48 |
| Total | 762,872,589.73 | 1,005,277,395.49 |
(2)Incomefromlong-termequityinvestmentsundercostmethod
| Investee | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Reasonforchangescomparingwithpriorperiod |
| DongguanChiwanTerminalCo.,Ltd. | 37,543,998.58 | 48,020,128.82 | Changesinprofitdistributionofinvestee |
| DongguanChiwanWarfCo.,Ltd. | 18,111,237.23 | - | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanTugboatCo.,Ltd. | 29,238,925.84 | 30,409,076.03 | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanInternationalFreightAgencyCo.,Ltd. | 231,098.94 | 89,076.85 | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanPortDevelopmentCo.,Ltd. | 20,415,654.72 | 14,577,752.63 | Changesinprofitdistributionofinvestee |
| CMPort | 8,322,676.13 | 652,351,928.94 | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanHarborContainerCo.Ltd. | 173,751,858.77 | 143,574,378.69 | Changesinprofitdistributionofinvestee |
| ZhanjiangPort(Group)Co.,Ltd | 91,862,080.91 | 23,395,773.67 | Changesinprofitdistributionofinvestee |
| ChiwanContainerTerminalCo.,Ltd. | 166,925,696.05 | - | Changesinprofitdistributionofinvestee |
| Total | 546,403,227.17 | 912,418,115.63 |
SUPPLEMENTARYINFORMATIONFORTHEPERIODFROM1JANUARYTO30JUNE2022(Unlessotherwisespecified,themonetaryunitshallbeRMB.)
1.BREAKDOWNOFNON-RECURRINGPROFITORLOSS
CHINAMERCHANTSPORTGROUPCO.,LTD.Item
| Item | Amount | Remarks |
| Lossesondisposalofnon-currentassets | -1,794,945.06 | |
| Taxrefundsorreductionswithultraviresapprovalorwithoutofficialapprovaldocuments | - | |
| Governmentgrantsrecognizedinprofitorloss(exceptforgrantsthatarecloselyrelatedtotheCompany'sbusinessandareinamountsandquantitiesfixedinaccordancewiththenationalstandard) | 73,174,992.52 | |
| Moneylendingincomeearnedfromnon-financialinstitutionsinprofitorloss | 112,701,958.95 | |
| 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 | -38,026,112.58 | |
| Reversalofprovisionforaccountsreceivablethataretestedforcreditlossindividually | 3,794,522.98 | |
| Gainsorlossesonentrustedloans | - | |
| Gainsorlossesonchangesinthefairvalueofinvestmentpropertiesthataresubsequentlymeasuredusingthefairvaluemodel | - | |
| Effectsonprofitorlossofone-offadjustmenttoprofitorlossfortheperiodaccordingtotherequirementsbytaxlawsandaccountinglawsandregulations | - | |
| Custodianfeesearnedfromentrustedoperation | - | |
| Othernon-operatingincomeorexpensesotherthanabove | 207,606.81 | |
| Otherprofitorlossthatmeetsthedefinitionofnon-recurringprofitorloss | - | |
| Taxeffects | -21,936,823.86 | |
| Effectsofminorityinterest(aftertax) | -66,809,120.74 | |
| Total | 61,312,079.02 |
SUPPLEMENTARYINFORMATIONFORTHEPERIODFROM1JANUARYTO30JUNE2022(Unlessotherwisespecified,themonetaryunitshallbeRMB.)
2.RETURNONNETASSETSANDEARNINGSPERSHARE("EPS")
ThereturnonnetassetsandEPShavebeenpreparedbyShenzhenChiwanWharfCo.,Ltd.inaccordancewithInformationDisclosureandPresentationRulesforCompaniesMakingPublicOfferingNo.9-CalculationandDisclosureofReturnonNetAssetsandEarningsperShare(revisedin2010)issuedbyChinaSecuritiesRegulatoryCommission.
CHINAMERCHANTSPORTGROUPCO.,LTD.
Item
| Item | Weightedaveragereturnonnetassets(%) | EPS | |
| BasicEPS | DilutedEPS | ||
| Netprofitattributabletoordinaryshareholders | 4.8759 | 1.0309 | 1.0309 |
| Netprofitattributabletoordinaryshareholdersafterdeductingnon-recurringprofitorloss | 4.7251 | 0.9991 | 0.9990 |