Stock Code: 001872/201872 Stock Name: CM Port Group/CM Port Group B Announcement No. 2023-027
CHINA MERCHANTS PORT GROUP CO., LTD.
ANNUAL REPORT 2022 (SUMMARY)
Part I Important Notes
This Summary is based on the full Annual Report of China Merchants Port Group Co., Ltd.(hereinafter referred to as the “Company”). In order for a full understanding of the Company’soperating results, financial position and future development plans, investors should carefully readthe aforesaid full text on the media designated by the China Securities Regulatory Commission (the“CSRC”).This Summary is prepared in both Chinese and English. Should there be any discrepancy betweenthe two versions, the Chinese version shall prevail.All the Company’s directors have attended the Board meeting for the review of this Report and itssummary.Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved final cash and/or stock dividend plan for ordinary shareholders for the ReportingPeriod:
√ Applicable □ Not applicable
Bonus issue from capital reserves:
□ Yes √ No
The Board has approved a final dividend plan as follows: based on 2,499,074,661 shares, a cashdividend of RMB4.50 (tax inclusive) per 10 shares is to be distributed to shareholders, with nobonus issue from either profit or capital reserves.Board-approved final cash and/or stock dividend plan for preferred shareholders for the ReportingPeriod :
□ Applicable √ Not applicable
Please refer to the full Annual Report for the definitions of the abbreviations mentioned in this
Summary.
Part II Key Corporate Information
1. Stock Profile
| Stock name | CM Port Group/ CM Port Group B | Stock code | 001872/ 201872 | |
| Stock exchange for stock listing | Shenzhen Stock Exchange | |||
| Contact information | Board Secretary | Securities Representative | ||
| Name | Li Yubin | Hu Jingjing | ||
| Address | 24/F, China Merchants Port Plaza, 1 Gongye 3rd Road, Zhaoshang Street, Nanshan, Shenzhen, PRC | 24/F, China Merchants Port Plaza, 1 Gongye 3rd Road, Zhaoshang Street, Nanshan, Shenzhen, PRC | ||
| Fax | +86 755 26886666 | +86 755 26886666 | ||
| Tel. | +86 755 26828888 | +86 755 26828888 | ||
| Email address | Cmpir@cmhk.com | Cmpir@cmhk.com | ||
2. Main business of the Company during the Reporting Period
(1) Principal Activities of the Company during the Reporting PeriodThe Company is principally engaged in port operations, ancillary port-related services and bondedlogistics operations. The port operations include containers and bulk cargos, with a comprehensiveport network across the hub locations along coastal China, and the terminals which the Companyinvested in or invested in and managed are located in hub locations across Hong Kong, Taiwan,Shenzhen, Ningbo, Shanghai, Qingdao, Tianjin, Dalian, Zhangzhou, Zhanjiang, and Shantou, aswell as in Asia, Africa, Europe, Oceania, South and North America, amongst others. The ancillaryport-related services mainly include smart port solutions, an open platform for smart ports, smartport technology operation and other port information technology businesses, as well as port tugservices and port trimming services, engineering supervision and management business. Thebonded logistics operations mainly include the provision of warehousing leasing, customs clearance,division or merger of cargoes, documentation and other services for customers in ShenzhenQianhaiwan Bonded Port Zone, Qingdao Qianwan Bonded Port Zone, Tianjin Dongjiang BondedPort Zone, the free trade zone in Djibouti and Hambantota industrial park.The main business segments of the Company are as follow:
| Business segments | Applications area |
| Port operations | Containers: the Company provides ship berthing, loading and unloading services for ship companies, offers container storage service to ship companies and cargo owners and provides overhead box services for tractor companies. The Company also engages in the businesses of division or merger of cargoes in containers, container leasing and container; Bulk cargoes: the Company is engaged in bulk cargo handling and |
transportation in port zones, as well as storage services in yards. The majortypes of cargoes handled include food, steel, woods.
| transportation in port zones, as well as storage services in yards. The major types of cargoes handled include food, steel, woods. | |
| Ancillary port-related services | The ancillary port-related services mainly include smart port solutions, an open platform for smart ports, smart port technology operation and other port information technology businesses, as well as port tug services and port trimming services, engineering supervision and management business. |
| Bonded logistics operations | The Company provides various services for clients (including logistics companies, trading companies or cargo owners), for example, warehouse/yard leasing, loading and unloading in warehouses/yards, customs clearance and division or merger of cargoes at terminals. It also provides documentation services for tractors arriving or leaving the bonded logistics parks. |
(2) Development stage and cyclical characteristic of the industry in which the Companyoperates and its industry position during the Reporting PeriodThe port industry is a crucial foundation of national economy and social progress, and is closelylinked to global economic and trade development. The Company is the China’s largest and globalleading port developer, investor, and operator, with a comprehensive port network across the hublocations along coastal area of China, as well as Asia, Africa, Europe, Mediterranean Sea, Oceania,South and North America, amongst others. Upholding an enterprising, steady and efficientoperating style, the Company capitalises on its global port portfolio, professional managementexperience, the self-developed state-of-the-art terminal operation system and integrated logisticsmanagement platform for exports and imports, thereby providing its customers with timely andefficient port and maritime logistics services along with comprehensive and modern integratedlogistics solutions. In addition, the Company also invests in bonded logistics business and launchesintegrated park development business, promotes the transformation and upgrade of the port industry,develops port supporting industries, and is committed to improving the industrial efficiency andcreating greater value through the synergy within existing terminal network.
3. Key Financial Information
(1) Key Financial Information of the Past Three Years
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Unit: RMB
| 31 December 2022 | 31 December 2021 | Change of 31 December 2022 over 31 December 2021 (%) | 31 December 2020 | |
| Total assets | 197,525,530,887.76 | 175,984,101,168.66 | 12.24% | 168,728,326,345.77 |
| Equity attributable to the listed company’s shareholders | 54,267,143,304.02 | 39,801,188,662.13 | 36.35% | 37,165,277,744.78 |
| 2022 | 2021 | 2022-over- 2021 change | 2020 | |
| Operating revenue | 16,230,489,127.55 | 15,283,808,174.60 | 6.19% | 12,756,744,317.91 |
| Net profit attributable to the listed company’s shareholders | 3,337,446,222.82 | 2,685,829,204.07 | 24.26% | 2,073,844,409.04 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 3,345,170,153.81 | 2,355,700,274.23 | 42.00% | 1,271,352,002.64 |
| Net cash generated from/used in operating activities | 6,920,377,390.35 | 6,510,326,570.48 | 6.30% | 5,551,289,013.01 |
| Basic earnings per share (RMB/share) | 1.61 | 1.40 | 15.00% | 1.08 |
| Diluted earnings per share (RMB/share) | 1.61 | 1.40 | 15.00% | 1.08 |
| Weighted average return on equity (%) | 7.54% | 6.99% | 0.55% | 5.67% |
(2) Key Financial Information by Quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 4,020,203,113.25 | 4,130,259,253.94 | 3,971,339,655.24 | 4,108,687,105.12 |
| Net profit attributable to the listed company’s shareholders | 859,493,121.60 | 1,122,368,203.02 | 771,042,670.19 | 584,542,228.01 |
| Net profit attributable to the listed company’s | 838,801,864.90 | 1,081,747,380.70 | 738,503,229.51 | 686,117,678.70 |
shareholders beforeexceptional gains and losses
| shareholders before exceptional gains and losses | ||||
| Net cash generated from/used in operating activities | 999,264,265.35 | 2,221,986,911.74 | 1,782,510,001.40 | 1,916,616,211.86 |
Indicate by tick mark whether any of the quarterly financial data in the table above or theirsummations differs materially from what have been disclosed in the Company’s quarterly orsemiyearly reports.
□ Yes √ No
4. Share Capital and Shareholder Information at the Period-End
(1) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed VotingRights as well as Holdings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders at the period-end | 31,210 ( 20,089 A-shareholders and 11,121 B-shareholders) | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 32,505 (21,367 A-shareholders and 11,138 B-shareholders) | Number of preferred shareholders with resumed voting rights at the period-end (if any) | 0 | Number of preferred shareholders with resumed voting rights at the month-end prior to the disclosure of this Report (if any) | 0 | |||||
| 5% or greater shareholders or top 10 shareholders | ||||||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held at the period-end | Increase/decrease in the Reporting Period | Restricted shares held | Unrestricted shares held | Shares in pledge or frozen | |||||
| CHINA MERCHANTS PORT INVESTMENT DEVELOPMENT COMPANY LIMITED | Foreign legal person | 45.96% | 1,148,648,648 | 0 | 0 | 1,148,648,648 | 0 | |||||
| ZHEJIANG PROVINCIAL SEAPORT INVESTMENT & OPERATION GROUP CO., LTD. | State-owned legal person | 23.08% | 576,709,537 | 576,709,537 | 576,709,537 | 0 | 0 | |||||
| CHINA MERCHANTS GANGTONG DEVELOPMENT (SHENZHEN) CO., LTD. | State-owned legal person | 14.84% | 370,878,000 | 0 | 0 | 370,878,000 | 0 | |||||
SHENZHENINFRASTRUCTUREINVESTMENTFUND-SHENZHENINFRASTRUCTUREINVESTMENTFUNDPARTNERSHIP(LIMITEDPARTNERSHIP)
| SHENZHEN INFRASTRUCTURE INVESTMENT FUND-SHENZHEN INFRASTRUCTURE INVESTMENT FUND PARTNERSHIP (LIMITED PARTNERSHIP) | Fund and wealth management products | 2.59% | 64,850,182 | 0 | 0 | 64,850,182 | 0 | |
| CHINA-AFRICA DEVELOPMENT FUND | State-owned legal person | 2.57% | 64,102,564 | 0 | 0 | 64,102,564 | 0 | |
| BROADFORD GLOBAL LIMITED | State-owned legal person | 2.21% | 55,314,208 | 0 | 0 | 55,314,208 | Unknown | |
| HONG KONG SECURITIES CLEARING COMPANY LTD. | Foreign legal person | 0.25% | 6,210,896 | 165,827 | 0 | 6,210,896 | Unknown | |
| ZHU HUI | Domestic natural person | 0.12% | 2,880,003 | -78,000 | 0 | 2,880,003 | Unknown | |
| CHINA MERCHANTS SECURITIES (HK) CO., LTD. | Foreign legal person | 0.10% | 2,542,455 | -21,100 | 0 | 2,542,455 | Unknown | |
| MONETARY AUTHORITY OF MACAO-SELF-OWNED FUNDS | Foreign legal person | 0.09% | 2,172,637 | 2,172,637 | 0 | 2,172,637 | Unknown | |
| Strategic investors or general legal person becoming top-ten ordinary shareholders due to placing of new shares (if any) | Among the foregoing shareholders, Shenzhen Infrastructure Investment Fund-Shenzhen Infrastructure Investment Fund Partnership (Limited Partnership) subscribed for 64,850,182 shares of the Company offered in a non-public manner in 2019 for raising supporting funds at RMB17.16 per share. The subscribed shares were floated on Shenzhen Stock Exchange on 4 November 2019, and the lock-in period lasted until 4 November 2020. China-Africa Development Fund subscribed for 64,102,564 shares of the Company offered in a non-public manner in 2019 for raising supporting funds at RMB17.16 per share. The subscribed shares were floated on Shenzhen Stock Exchange on 4 November 2019, and the lock-in period lasted until 4 November 2020. Zhejiang Provincial Seaport Investment & Operation Group Co., Ltd. subscribed for 576,709,537 shares of the Company offered in a non-public manner at RMB18.50 per share. The subscribed shares were floated on Shenzhen Stock Exchange on 12 October 2022, and the lock-in period lasts until 12 October 2025. | |||||||
| Related or acting-in-concert parties among the shareholders above | China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a majority-owned subsidiary of Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of China Merchants Port Investment Development Company Limited. The Company does not know whether the other unrestricted shareholders are related parties or not. | |||||||
| Above shareholders involved in entrusting/being entrusted and giving up voting rights | None | |||||||
| Special account for share repurchases (if any) among the top 10 shareholders (see note 10) | None | |||||||
| Top 10 unrestricted shareholders | ||||||||
| Name of shareholder | Unrestricted shares held at the period-end | Shares by type | ||||||
| Type | Shares | |||||||
| CHINA MERCHANTS PORT INVESTMENT DEVELOPMENT COMPANY LIMITED | 1,148,648,648 | RMB ordinary share | 1,148,648,648 | |||||
CHINA MERCHANTSGANGTONGDEVELOPMENT(SHENZHEN) CO., LTD.
| CHINA MERCHANTS GANGTONG DEVELOPMENT (SHENZHEN) CO., LTD. | 370,878,000 | RMB ordinary share | 370,878,000 |
| SHENZHEN INFRASTRUCTURE INVESTMENT FUND-SHENZHEN INFRASTRUCTURE INVESTMENT FUND PARTNERSHIP (LIMITED PARTNERSHIP) | 64,850,182 | RMB ordinary share | 64,850,182 |
| CHINA-AFRICA DEVELOPMENT FUND | 64,102,564 | RMB ordinary share | 64,102,564 |
| BROADFORD GLOBAL LIMITED | 55,314,208 | Domestically listed foreign share | 55,314,208 |
| HONG KONG SECURITIES CLEARING COMPANY LTD. | 6,210,896 | RMB ordinary share | 6,210,896 |
| ZHU HUI | 2,880,003 | RMB ordinary share | 2,880,003 |
| CHINA MERCHANTS SECURITIES (HK) CO., LTD. | 2,542,455 | Domestically listed foreign share | 2,542,455 |
| MONETARY AUTHORITY OF MACAO-SELF-OWNED FUNDS | 2,172,637 | RMB ordinary share | 2,172,637 |
| MAI SHUQING | 2,129,247 | RMB ordinary share | 2,129,247 |
| Related or acting-in-concert parties among top 10 unrestricted public shareholders, as well as between top 10 unrestricted public shareholders and top 10 shareholders | China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a majority-owned subsidiary of Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of China Merchants Port Investment Development Company Limited. The Company does not know whether the other unrestricted shareholders are related parties or not. | ||
| Top 10 ordinary shareholders involved in securities margin trading (if any) | N/A | ||
(2) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
(3) Ownership and Control Relations between the Actual Controller and the Company
5. Outstanding Bonds at the Date when this Report Was Authorized for Issue
(1) Bond Profile
| Bond name | Abbr. | Bond code | Issue date | Maturity | Outstanding balance (RMB’0,000) | Interest rate |
| 2020 Public Offering of Corporate Bonds of China Merchants Port Group Co., Ltd. (for qualified investors) (Phase I) | 20 CMPort 01 | 149170 | 7 July 2020 | 8 July 2023 | 200,000 | 3.36% |
| 2022 Public Offering of Corporate Bonds of China Merchants Port Group Co., Ltd. (for professional investors) (Phase I) | 22 CMPort 01 | 148052 | 29 August 2022 to 30 August 2022 | 30 August 2025 | 300,000 | 2.69% |
Bond name
| Bond name | Abbr. | Bond code | Issue date | Maturity | Outstanding balance (RMB’0,000) | Interest rate |
| 2022 Public Offering of Corporate Bonds of China Merchants Port Group Co., Ltd. (for professional investors) (Phase II) | 22 CMPort 02 | 148058 | 5 September 2022 to 6 September 2022 | 6 September 2024 | 300,000 | 2.45% |
| 2022 Public Offering of Corporate Bonds of China Merchants Port Group Co., Ltd. (for professional investors) (Phase III) | 22 CMPort 03 | 148060 | 8 September 2022 to 9 September 2022 | The maturity date of the bonds is 9 September 2023; if the issuer exercises the redemption option, the maturity date of the bonds is 8 March 2023; if the investor exercises the resale option, the maturity date of the resale portion of the bonds is 8 March 2023. | 200,000 | 1.93% |
| Interest payment during the Reporting Period | During the Reporting Period, interest on “20 CMPort 01” for the period from 8 July 2021 to 7 July 2022 was paid on 8 July 2022. | |||||
(2) Latest Rating and Rating Change
On 23 February 2023, China Chengxin International Credit Rating Co., Ltd. (CCXI) issued the2023 Credit Rating Report (CCXI-20230389M-01). CCXI granted the corporate credit rating ofAAA to the Company with a rating outlook of Stable. During the reporting period, there is no ratingdifference in the main ratings of other bonds and debt financing instruments issued by the Companyin China.
(3) The Major Accounting Data and the Financial Indicators of the Recent 2 Years of theCompany up the Period-end
| Item | 31 December 2022 | 31 December 2021 | Change |
| Current ratio | 76.93% | 75.96% | 1.28% |
| Debt/asset ratio | 35.07% | 36.91% | -1.84% |
| Quick ratio | 76.08% | 75.32% | 1.01% |
| 2022 | 2021 | Change | |
| Net profit before exceptional gains and losses (RMB ’0,000) | 334,517.02 | 235,570.03 | 42.00% |
Debt/EBITDA ratio
| Debt/EBITDA ratio | 21.47% | 21.65% | -0.18% |
| Interest cover (times) | 4.14 | 4.62 | -10.39% |
| Cash-to-interest cover (times) | 5.02 | 5.02 | 0.00% |
| EBITDA-to-interest cover (times) | 6.59 | 7.16 | -7.96% |
| Debt repayment ratio (%) | 100.00% | 100.00% | - |
| Interest payment ratio (%) | 100.00% | 100.00% | - |
Part III Significant Events
1. Implementation of business plan during the Reporting Period
During the Reporting Period, in face of the severe and complicated macro environment, theCompany spared no effort in stabilising the economy and ensuring the smooth operation of the ports,while at the same time, it captured every opportunity to expand its business and improve its qualityand efficiency, and through which, the Company’s business operated in a stable manner withenhanced quality. To continuously provide unimpeded and stable services for international supplyand industrial chain, the Company resolutely pushed forward the development of homebase portand regional leading port, sped up endogenous growth and innovation upgrading, thus strengtheningvalue creation for customers and forming a synergetic and win-win situation with partners.
(1) Creating new situation for the development of leading ports with endogenous growth. In2022, the price in the container business of ports the Company mainly controls was raised in thefirst half of the year by capitalising the situation, which enabled the Company to secure thecontainer volume against the situation and made progress in an overall stable performance in thesecond half of the year. For the domestic homebase port, the market share of West Shenzhenhomebase port in the three ports in South China increased to 19.1% by increasing 1.2 percentagepoints, making new record in the latest five years. The Company established South China BulkCargo Operation Center, opening a new development pattern of high quality for West Shenzhenhomebase port. Tonggu channel enabled ships of 200,000 tonnes to sail at night, strengthened itscapability to serve large ships at 24 hours and overall competitiveness. For the overseas homebaseport, the Company was committed to build the overseas homebase port in Sri Lanka, CICT andHIPG into an international container hub port and a reginal comprehensive leading port,respectively. Besides, the Company continued to advance the construction of the internationalshipping center in South Asia, and continued to improve the integrated operation and managementof the two ports. For the severe political and economic crisis and other challenges encountered byprojects in Sri Lanka, the Company coped with them properly, thus guaranteed the production,stabilised the supply and achieved growth regardless of the market recession.
(2) Improving asset quality by optimising asset structure. In the first half of the year, ChinaMerchants Port, a holding subsidiary of the Company, held additional shares of 329 million of SIPG.After the completion, the shareholding in SIPG held by China Merchants Port increased from 26.64%to 28.05%, which consolidated the Company's position as the second largest shareholder of SIPGand strengthened the synergetic development with SIPG. The Company completed the acquisitionof 14.6% equity of Asia Airfreight Terminal (AAT), and its shareholding increased to 34.6% afterthe completion. Besides, the Company expanded the space for airport business development, andcontinuously deepened the logistics supply chain layout in the Guangdong-Hong Kong-MacaoGreater Bay Area. In the second half of the year, Zhejiang Seaport Group subscribed for, as astrategic investor, 577 million A-shares in the private placement of the Company by capitalinjection of RMB10.669 billion, and its shareholding was 23.08% after the completion and became
the second largest shareholder of the Company. At the same time, the Company subscribed for, as astrategic investor, 3.647 billion A-shares in the private placement of the Ningbo Port by capitalinjection of RMB14.114 billion, and its shareholding increased to 23.08% after the completion andbecame the second largest shareholder of Ningbo Port. The strategic increase of shareholdings bythe two listed companies strengthened the role of both ports as an integrated hub andcomprehensively enhanced the high-quality development standard of ports. The Company increasedits shareholding of Antong Holdings to 6.83%, further expanding the influence of the port andshipping business.
(3) Inspiring new vitality of development for enterprises by deepening reform. Being listed inthe “Double-Hundred Enterprises” of the State-owned Enterprises Reform in 2022, the Companyintegrated the reform work of “Double-Hundred Action” with the new ten-year strategicdevelopment, to stimulate endogenous growth and innovation and upgrading with reform. Inaccordance with the requirements under the “1+N” series documents of the State-owned EnterprisesReform, the Company carried out general inspection on its governance mechanism, employmentmechanism and incentive mechanism, to address systematically the issues existed along theCompany’s development. The Company developed reform plan and working record by focusing onthe goal of “Five Breakthroughs and One Reinforcement” under the “Double-Hundred Action”. Areform leading group and working group were set up by the Company to establish a systematicworking mechanism. By focusing on deepening the mixed-ownership reform, the Companyimproved the governance operation efficiency, enhanced employment mechanism reform and thebuilding of international talents system, so as to comprehensively improve the standard of the partyleadership and party building of an enterprise. The steadfastly pushing forward of various worksunder the “Double-Hundred Action” injected new vitality into the development of the Company andhelped the Company in building a world-class enterprise.
(4) Building benchmark of smart port by technological innovation. According to therequirement of industry development and technological development trend, the Company continuedto revise and refine the digitalization plan, promoted the construction of three platforms, namely“CMC Chip”, “CM ePort” and “SMP” to perfect relevant implementation plan and improve level ofindustrial digitalization. “CMC Chip” carried out R&D on intelligent stowage, operationstimulation and other functions, conducted 5G private network expansion verification, andintroduced vehicle-road collaborative testing. The construction of data base of China MerchantsPort, business process platform, data indicator platform and global monitoring center has beenfinished on the “SMP” platform, and was officially applied into the operation analysis of enterprises.“CM ePort” initiated the R&D of 3.0 version, which was smoothly put into trial operation onShenzhen West Port Area and Machong Port. The Company continued to push forward theconstruction of Mawan Smart Port and Mawan autonomous driving project was successfullyselected as the first batch of intelligent transportation pilot application projects of the Ministry ofCommunications, and the smart port solution was included in the Recommendations of Scientific &Technological Innovation of Central Enterprise and won the only Special Award for Scientific andTechnological Progress issued by the China Ports Association in 2021. CMIT was approved by theMinistry of Communications for TOS project, and the smart port solution of China Merchants Portdelivered phased outcomes.
(5) Extending new node of value chain by business expansion. By continuous using its edge asthe hub of supply chain of ports, the Company expanded the supply chain extension services withtechnological revolution. With respect of domestic business, the Company increased its efforts inexpanding Combined Port in the Guangdong-Hong Kong-Macao Greater Bay Area to strengthenthe building of cargo collection, distribution and transport system, and build a collaborative alliancefeaturing multifaceted businesses with the West Shenzhen homebase port as core under thecoordinated port framework. In 2022, 12 coordinated ports have been put into operation and a totalof 25 coordinated ports have been put into operation, which served more than 4,700 import and
export enterprises in the Greater Bay Area and completed serving approximately 5,300 barges andapproximately 7,000 large vessels, and handled 0.26 million TEUs, which further strengthened thecollaborative alliance featuring multifaceted businesses with the West Shenzhen homebase port ascore. With respect of oversea business, based on the port in Djibouti, the Company opened newlogistics channel for sea and air combined transportation between China and major cities on theAfrican continent, together with its strategic partners, cutting about 50% transport time compared towhole sea transportation and about 50% transport cost compared to whole air transportation. Thisnew logistics channel has delivered goods to 16 major cities in 14 African countries, which furtherenhanced the Company’s service capability in international logistics supply chain.
(6) Exploring new industrial pattern by comprehensively development. The Companyconstantly pushed forward the innovation of business mode by leverage of the comprehensivedevelopment segment, focused on customer development and promoted industry-driven investment.HIPG Industrial Park was occupied by 40 contracted enterprises, covering many key industrialprojects such as tire factory, cement plant and yacht assembly site. It constantly provides flexibleand diversified land service mode, and continuously enriches the industrial park, thus to improvethe industrial chain in the park. Djibouti Free Trade Zone was occupied by 287 contractedenterprises, increased 91 contracted enterprises as compared to the beginning of the year. Theonline Djimart e-commerce platform was upgraded to enable online payment function throughUnionPay, which, together with offline exhibition of "Made in Liaocheng", consolidated thedevelopment of services and products of different ports, provided customized services and productsto customers and accelerated the transformation of business mode from land warehouse lease to theprovision of overall solutions for customers.
(7) Deepening management reform by smart operation. The Company steadfastly drove forwardthe digitalization development and transformation, thoroughly implemented the construction of“digital investment port” and formally initiated “SMP”. Through business process and informationsharing module along with the intelligent analysis and decision supporting modules, “SMP” built aone-stop comprehensive management platform of CMPort, supporting the business analysis of allmodules, namely containers, bulk cargos, logistics park, comprehensive development and intelligenttechnology, which satisfied the requirements of corporate management of all levels. As the coresmart tool for building of port data management system and data asset management, “SMP” takesdigital technology as the key force and applies smart tools to drive the transformation of means,modes and concepts of the operation and management of CMPort.
(8) Building new image for the port by green development. The Company deeply and thoroughlyimplements the innovative, coordinated, green, open and shared development concept, adheres tothe human-oriented and green development philosophy and sticks to the principle of mutualnegotiation, joint construction and sharing, so as to comprehensively establish the ESG system ofCMPort, push forward the green, high quality and sustainable development both home and abroadand continuously improve the Company’s ESG rating. In 2022, the Company was selected in theESG·Pioneer 50 Index of Central Enterprises from 426 central enterprises, ranking 12
th
in the indexlist, which fully demonstrated the recognition from the SASAC on the Company’s work. Besides,the Company also won the ESG Golden Bull Award·Responsible Investment Pioneer Award (ESG金牛奖·责任投资先锋奖) in 2022, fully demonstrating the high recognition from the industry onthe Company’s practice of ESG concept on port investment and operation and management.
2. Operating Division, Product Category, Operating Segment or Distribution ModelContributing over 10% of Operating Revenue or Operating Profit
Unit: RMB
| Operating revenue | Cost of sales | Gross profit | YoY change in | YoY change in | YoY change in |
margin
| margin | operating revenue (%) | cost of sales (%) | gross profit margin (%) | |||
| By operating division | ||||||
| Port operations | 15,626,802,064.84 | 9,153,516,391.90 | 41.42% | 6.77% | 6.81% | -0.02% |
| By operating segment | ||||||
| Mainland China, Hong Kong and Taiwan | 12,105,380,701.20 | 7,762,369,545.92 | 35.88% | 4.80% | 5.79% | -0.60% |
| Other countries and regions | 4,125,108,426.35 | 1,888,092,167.02 | 54.23% | 10.50% | 10.48% | 0.01% |
3. YoY Changes to the Scope of Consolidated Financial StatementsIn February 2022, CMPort established Port Development (Hongkong) Company Limited, awholly-owned subsidiary. In March 2022, CMPort invested all of its shares in CMPort Holdings(1,627,635,473 shares, accounting for 42.995% of its total share capital) as the contribution.Guangdong Shunkong Port-related Development and Construction Co., Ltd. (hereinafter referred toas "Shunkong"), established in July 2020, is a wholly-owned subsidiary of Guangdong ShunkongUrban Investment and Properties Co., Ltd. (hereinafter referred to as "Shunkong Urban Investment")with a registered capital of RMB30 million. On 30 March 2022, Shunkong Urban Investment put upfor sale a 51% interest in Shunkong with a capital increase requirement at GuangDong UnitedAssets and Equity Exchange (Zhuhai Branch), while Shunkong Urban Investment still retained theother 49% interest. In August, CMPort completed a capital injection of RMB50 million, including aregistered capital increase of RMB31.22 million, and held the 51% interest in Shunkong upon thecompletion of the capital injection. Shunkong has completed the ownership change with theindustrial and commercial administration and the amendments to its articles of association regardingshareholders' meetings in November, and CMPort has included Shunkong in its consolidatedfinancial statements since November 2022.
China Merchants Port Group Co., Ltd.Board of DirectorsDated 4 April 2023