Stock Code: 001872/201872 Stock Name: CM Port Group/CM Port Group B Announcement No. 2024-023
CHINA MERCHANTS PORT GROUP CO., LTD.
ANNUAL REPORT 2023 (SUMMARY)
Part I Important NotesThis 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 the Reporting Period:
√ Applicable □ Not applicable
Bonus issue from capital reserves:
□ Yes √ No
The Board has approved a final dividend plan as follows: based on 2,499,462,404 shares, a cashdividend of RMB5.80 (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 thisSummary.
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's core business includes major port business and comprehensive developmentbusiness, and the nurturing business includes smart technology business and ecological extensionbusiness.
The major port business includes containers and bulk cargo handling and warehousing services. TheCompany has established a comprehensive port network across the hub locations along coastalChina, and the terminals which the Company invested in or invested in and managed are located inhub locations across Hong Kong, Taiwan, Shenzhen, Ningbo, Shanghai, Qingdao, Tianjin, Dalian,Zhangzhou, Zhanjiang, and Shantou, as well as in Asia, Africa, Europe, Oceania, South and NorthAmerica, amongst others. In terms of port investment, the Company puts emphasis on its presencein global major hub locations, gateway ports and regions with huge market potential, rapideconomic growth and promising development, in order to capture investment opportunities in ports,logistics and related infrastructure and further improve the global port network.
In terms of the comprehensive development business, leveraging on the innovative park businessmodels and services, the Company conducts in-depth exploration of synergy value between portsand parks, and provides customers with diversified value-added services, including warehousingleasing, customs clearance, division or merger of cargoes, documentation services, amongst others,in Shenzhen Qianhaiwan Bonded Port Zone, Qingdao Qianwan Bonded Port Zone, TianjinDongjiang Bonded Port Zone, Djibouti International Free Trade Zone, Hambantota Industrial Park,.
In terms of the smart technology business, the Company utilizes cutting-edge digital technology tofully leverage its advantages of big data and rich application scenarios, drives its industrialdigitalization and digital industrialization, and provides customers with premium port servicesthrough smart port solutions, an open platform for smart ports and smart port technologyoperations.
In terms of the ecological extension business, which is based on ports as the core and includes porttugboat service, tallying business and engineering supervision and management business, theCompany integrates the port ecological service resources, promotes the collaboration andcooperation between the upstream and downstream of the port logistics value chain and lays a keyfocus on the openness and sharing of resources, to advance the smooth trade development as well asthe efficient operation of the logistics, information flow and capital flow of the port service chainand further help customers reduce costs and increase efficiency.
The main business segments of the Company are as follows:
| Business segments | Business content | |
| Core business | Major port business | Port investment: ●The Company puts emphasis on its presence in global major hub locations, gateway ports and regions with huge market potential, rapid economic growth and promising development, in order to capture investment opportunities in ports, logistics and related infrastructure, and further improve the global port network. Port operation: ●Containers: The Company provides ship berthing, loading and unloading services to ship companies, offers container storage service to ship companies and cargo owners and provides overhead box services to tractor companies. The Company also engages in the businesses of division or merger of cargoes in containers, container leasing and container maintenance; ●Bulk cargoes: the Company is engaged in bulk cargo handling and transportation in port zones, as well as storage services in yards. The major types of cargoes handled include food, steel, woods and sandstones. |
| Comprehensive development business | The Company provides various services, including warehouse/yard leasing, loading and unloading in warehouses/yards, customs clearance and division or merger of cargoes at terminals, intermodal transportation, logistics and transportation and value-added warehousing services for clients (including logistics companies, trading companies or cargo owners). Relying on the port-surrounding land resources, the Company conducts the comprehensive development to enhance the land value as well as the value of commercial properties, and provides its customers with quality property leasing and other related services. | |
Nurturingbusiness
| Nurturing business | Smart technology business | The Company focuses on smart port solutions, an open platform for smart ports and smart port technology operation, accelerates the industry upgrading from "digitization" to "digital intelligence", continues to empower the core businesses of port production, management, service and ecology, and injects new momentum into port enterprises through digital technology. |
| Ecological extension business | The business is based on ports as the core and includes port tugboat service, tallying business and engineering supervision and management business, and the Company integrates the port ecological service resources, promotes the collaboration and cooperation between the upstream and downstream of the port logistics value chain and lays a key focus on the openness and sharing of resources, to advance the smooth trade development as well as the efficient operation of the logistics, information flow and capital flow of the port service chain and further help customers reduce costs and increase efficiency. |
(2) Development stage and cyclical characteristic of the industry in which the Companyoperates and its industry position during the Reporting PeriodThe Company is a leading global port investor, developer and operator. As one of the top portoperators in the world, the Company has the resource endowment and unique advantages to build aworld-class comprehensive port service provider. In terms of scale, as at the end of the reportingperiod, the Company has established a relatively complete port network across major hub locationsalong coastal China, with its presence in 51 ports in 26 countries and regions including Asia, Africa,Europe, Oceania, South and North America. In 2023, according to the statistics of Alphaliner, theCompany's equity throughput of containers ranked third among the global port operators in terms ofthe growth of top 20 ports in the third quarter. In terms of quality, the master terminals controlled bythe Company have occupied various market and regional leading positions, continued to promoteESG construction, and strived to create an ESG port benchmark in the industry. In addition,leveraging on the good ground of port technology and based on the CTOS system self-developed byCMPort, the Company has worked out the worldwide first full-case, full-time, all-regime andmulti-factor traditional container terminal upgrading solution, and has built the trade facilitationplatform for the Guangdong-Hong Kong-Macao Greater Bay Area through blockchain technology,which has been extended to 30 terminals to help enhance the trade facilitation level in the GreaterBay Area. In terms of performance, the Company has continually promoted high-qualitydevelopment and has been an industry leader in terms of net profit margin and overall labourproductivity and other indicators.
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
On November 30, 2022, the Ministry of Finance promulgated the Interpretation of AccountingStandards for Business Enterprises No. 16, in which the provision that "deferred income tax relatedto assets and liabilities arising from single transactions does not apply to the accounting treatmentof initial recognition exemption" took effect on January 1, 2023. The Company has implementedthe above provisions since January 1, 2023, adopted the retrospective adjustment method foraccounting treatment, and restated the comparative annual financial statements.
Unit: RMB
| 2023 | 2022 | 2023-over- 2022 change | 2021 | |||
| Before | Restated | Restated | Before | Restated | ||
| Operating revenue (RMB) | 15,750,475,780.22 | 16,230,489,127.55 | 16,230,489,127.55 | -2.96% | 15,283,808,174.60 | 15,283,808,174.60 |
| Net profit attributable to the listed company’s shareholders (RMB) | 3,571,800,762.16 | 3,337,446,222.82 | 3,338,693,816.70 | 6.98% | 2,685,829,204.07 | 2,685,752,918.53 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 3,339,226,783.73 | 3,345,170,153.81 | 3,365,017,880.33 | -0.77% | 2,355,700,274.23 | 2,373,623,431.15 |
| Net cash generated from/used in operating activities (RMB) | 6,579,606,635.17 | 6,920,377,390.35 | 6,920,377,390.35 | -4.92% | 6,510,326,570.48 | 6,510,326,570.48 |
| Basic earnings per share (RMB/share) | 1.43 | 1.61 | 1.61 | -11.18% | 1.40 | 1.40 |
| Diluted earnings per share (RMB/share) | 1.43 | 1.61 | 1.61 | -11.18% | 1.40 | 1.40 |
| Weighted average return on equity (%) | 6.35% | 7.54% | 7.54% | -1.19% | 6.99% | 6.99% |
| 31 December 2023 | 31 December 2022 | Change of 31 December 2023 over 31 December 2022 (%) | 31 December 2021 | |||
| Before | Restated | Restated | Before | Restated | ||
| Total assets (RMB) | 198,557,296,667.26 | 197,525,530,887.76 | 197,587,102,447.31 | 0.49% | 175,984,101,168.66 | 176,040,600,182.21 |
| Equity attributabl | 58,847,592,947.55 | 54,267,143,304.02 | 54,291,425,886.65 | 8.39% | 39,801,188,662.13 | 39,822,241,022.30 |
e to thelistedcompany’sshareholders (RMB)
e to thelistedcompany’sshareholders (RMB)
(2) Key Financial Information by Quarter
Unit: RMB
| Q1 | Q2 | Q3 | Q4 | |
| Operating revenue | 3,693,584,257.97 | 4,101,677,313.02 | 3,960,045,863.71 | 3,995,168,345.52 |
| Net profit attributable to the listed company’s shareholders | 850,039,606.18 | 1,052,295,153.25 | 1,246,983,201.06 | 422,482,801.67 |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses | 724,465,592.72 | 1,076,927,780.43 | 1,201,169,655.63 | 336,663,754.95 |
| Net cash generated from/used in operating activities | 699,050,929.84 | 1,611,794,376.12 | 1,578,995,551.67 | 2,689,765,777.54 |
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 | 29,064 (17,986 A-shareholders and 11,078 B-shareholders) | Number of ordinary shareholders at the month-end prior to the disclosure of this Report | 30,312 (19,389 A-shareholders and 10,923 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 | |||||
ZHEJIANGPROVINCIALSEAPORTINVESTMENT &OPERATIONGROUP CO.,LTD.
| ZHEJIANG PROVINCIAL SEAPORT INVESTMENT & OPERATION GROUP CO., LTD. | State-owned legal person | 23.08% | 576,709,537 | 0 | 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 |
| 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 |
| BROADFORD GLOBAL LIMITED | State-owned legal person | 2.21% | 55,314,208 | 0 | 0 | 55,314,208 | 0 |
| CHINA-AFRICA DEVELOPMENT FUND | State-owned legal person | 1.69% | 42,190,151 | -21,912,413 | 0 | 42,190,151 | 0 |
| CHINA LIFE INSURANCE COMPANY LIMITED-TRADITION- GENERAL INSURANCE PRODUCTS-005L- CT001 HU | Funds, wealth management products, etc. | 0.19% | 4,734,022 | 4,734,022 | 0 | 4,734,022 | 0 |
| BASIC ENDOWMENT INSURANCE FUND 1006 PORTFOLIO | Funds, wealth management products, etc. | 0.18% | 4,556,289 | 4,556,289 | 0 | 4,556,289 | 0 |
| HONG KONG SECURITIES CLEARING COMPANY LTD. | Foreign legal person | 0.17% | 4,335,761 | -187,135 | 0 | 4,335,761 | 0 |
| CHINA MERCHANTS SECURITIES (HK) CO., LTD. | Foreign legal person | 0.11% | 2,668,175 | 125,720 | 0 | 2,668,175 | 0 |
| 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-concertparties among the shareholdersabove
| Related or acting-in-concert parties among the shareholders above | Broadford Global Limited is the controlling shareholder of China Merchants Port Investment Development Company Limited and China Merchants Gangtong Development (Shenzhen) Co., Ltd. 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 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 |
| BROADFORD GLOBAL LIMITED | 55,314,208 | Domestically listed foreign share | 55,314,208 |
| CHINA-AFRICA DEVELOPMENT FUND | 42,190,151 | RMB ordinary share | 42,190,151 |
| CHINA LIFE INSURANCE COMPANY LIMITED-TRADITION- GENERAL INSURANCE PRODUCTS-005L- CT001 HU | 4,734,022 | RMB ordinary share | 4,734,022 |
| BASIC ENDOWMENT INSURANCE FUND 1006 PORTFOLIO | 4,556,289 | RMB ordinary share | 4,556,289 |
| HONG KONG SECURITIES CLEARING COMPANY LTD. | 4,335,761 | RMB ordinary share | 4,335,761 |
| CHINA MERCHANTS SECURITIES (HK) CO., LTD. | 2,668,175 | Domestically listed foreign share | 2,668,175 |
| MAI SHUQING | 2,458,747 | RMB ordinary share | 2,458,747 |
| 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 | Broadford Global Limited is the controlling shareholder of China Merchants Port Investment Development Company Limited and China Merchants Gangtong Development (Shenzhen) Co., Ltd. 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) | At the end of the Reporting Period, the shareholder of the Company, Mai Shuqing held 2,458,747 shares through the customer credit transaction secured securities account in China Merchants Securities Co., Ltd. | ||
Top 10 shareholders involved in refinancing business through lending shares
□ Applicable √ Not applicable
Change in Top 10 shareholders compared with the last period
| Change in Top 10 shareholders compared with last period | |||||
| Name of shareholders (full name) | Add/exit in the Reporting Period | Shares lent for refinancing and not returned yet at the period-end | Shares held by shareholders through their general accounts and credit accounts and Shares lent for refinancing and not returned yet at the period-end | ||
| Total amount | % of total share capital | Total amount | % of total share capital | ||
| CHINA LIFE INSURANCE COMPANY LIMITED-TRADITION- GENERAL INSURANCE PRODUCTS-005L- CT001 HU | Add | 0 | 0.00% | 4,734,022 | 0.19% |
| BASIC ENDOWMENT INSURANCE FUND 1006 PORTFOLIO | Add | 0 | 0.00% | 4,556,289 | 0.18% |
| ZHU HUI | Exit | 0 | 0.00% | 0 | 0.00% |
| MONETARY AUTHORITY OF MACAO-SELF-OWNED FUNDS | Exit | 0 | 0.00% | 0 | 0.00% |
(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 | 0 | 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 | 300,000.00 | 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 | 300,000.00 | 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 2023 | 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. | 0 | 1.93% |
| Interest payment during the Reporting Period | During the Reporting Period, interest on “22 CMPort 03” for the period from 9 September 2022 to 7 March 2023 was paid on 8 March 2023. And interest on “20 CMPort 01” for the period from 8 July 2022 to 7 July 2023 was paid on 8 July 2023. | |||||
(2) Latest Rating and Rating Change
On 29 May 2023, China Chengxin International Credit Rating Co., Ltd. (CCXI) issued the 2023Follow-up Rating Report (XPWHZ [2023] No. 0268). CCXI granted the corporate credit rating ofAAA to the Company with a rating outlook of Stable.During the Reporting Period, there is no rating difference in the main ratings of other bonds anddebt financing instruments issued by the Company in China.
(3) The Major Accounting Data and the Financial Indicators of the Recent 2 Years of theCompany up the Period-end
| Item | 31 December 2023 | 31 December 2022 (Restated) | Change |
| Current ratio | 80.71% | 76.93% | 4.91% |
| Debt/asset ratio | 36.76% | 35.06% | 1.70% |
| Quick ratio | 79.96% | 76.08% | 5.10% |
| 2023 | 2022(Restated) | Change | |
| Net profit before exceptional gains and losses (RMB ’0,000) | 333,922.68 | 336,501.79 | -0.77% |
| EBITDA/debt ratio | 19.65% | 21.47% | -1.82% |
| Interest cover (times) | 3.85 | 4.14 | -7.00% |
| Cash-to-interest cover (times) | 4.38 | 5.02 | -12.75% |
EBITDA-to-interest cover(times)
| EBITDA-to-interest cover (times) | 6.28 | 6.59 | -4.70% |
| 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 complicated and changing situation for global supplychain, the Company adhered to the general thrust of seeking progress while maintaining stability,continued to overcome challenges and record steady growth by focusing on “high-qualitydevelopment” and endogenous growth as well as innovation and upgrade, made breakthrough in“finely developing in Southeast Asia” and progress in lean operation as well as continuouslybroke through the bottlenecks of homebase ports, and achieved better performance with higherquality with respect to construction of homebase ports, technological innovation, market expansion,operation management, deepening reform, comprehensive development, ESG construction andother aspects.
(1) As for the construction of homebase ports, strengthening regional position and extendingvalue chain. The business volume of the West Shenzhen homebase port recorded a steady growth.The container business created a record high in its market share in foreign trade in theGuangdong-Hong Kong-Macao Greater Bay Area, representing a better performance than theoverall level of the Guangdong-Hong Kong-Macao Greater Bay Area. In addition, the coordinatedports model in the Guangdong- Hong Kong-Macau Greater Bay Area has been promoted to otherregions on an ongoing basis. The Company efficiently propelled the development of the coordinatedports system covering the West Shenzhen Port Zone and the river ports in the Pearl River Deltaregion by integrating the functions of the blockchain platform of the coordinated port and the bargescheduling platform of the Pearl River Delta region, which helped significantly streamline trade andlogistics development in the Greater Bay Area; With further consolidating the leading position ofbulk cargo operations, the Company continued to rank first in terms of its domestic market share ofimported wheat, meals and compound fertilizer. For Sri Lanka homebase port, the Companycontinued to promote the construction of the international shipping hubs in South Asia. CICTcontinued to optimize the structure of shipping routes by focusing on local volume of containersand consolidating the foundation and created a record high in terms of its market share of localcontainers; the Company continued to extend its industry chain and build a logistics ecosphere.With the official initiating of trade and logistics project in South Asia, the Company made efforts totransform it into a new business growth point. HIPG continued to strengthen its corecompetitiveness by enhancing its foundation of RORO operations and actively exploring ROROvalue-added services, and also collaborated with Sinopec in joint marketing of fuel oil , whichcontributed to a new breakthrough in refueling for main channel ships and a history high in thebusiness volume of RORO vehicles and fuel oil.
(2) In terms of technological innovation, promoting digital innovation and constructing smartport. CMIT, a subsidiary of the Company, continued to increase investment in R&D oftechnologies, steadily implemented the critical task to implement the structural upgrade of theContainer Terminal Operation System (CTOS) of Ministry of Transport, continued to optimize theproposal of autonomous driving technology, sped up the R&D and promotion of products of
comprehensive service platform of “CM ePort”, and constantly promoted managementdelegation of the Smart Management Platform (SMP). In 2023, significant results were made inimplementing the critical task of CTOS; “CM ePort” succeeded in entirely covering thedomestic master terminals controlled by the Company to provide customers with one-stopintelligent services; The construction of data base of CMPort, business process platform, dataindicator platform and global monitoring center has been finished on the “SMP” platform, andwas comprehensively applied into the process management and operation analysis of enterprises.The project won the first prize in the operation management category of the first State-OwnedEnterprise Digital Scene Professional Competition by SASAC and the Special Award for Scienceand Technology Progress Award issued by the China Ports & Harbours Association in 2023.
(3) In terms of overseas expansion, implementing key projects and making breakthroughs inkey areas. In April 2023, an agreement on the South Asia Commercial and Logistics Hub inColombo Port was officially signed. The project, with a total investment of US$392 million, isimplemented by adopting the “Build-Operate-Transfer (BOT)” model, will provide a superiorlogistics and warehousing facility, and will offer the full gamut of services such as containerdisassembling and loading, bonded warehousing, free port operations, warehouse leasing andharbour trade logistics. The project will not only significantly improve the logistics services there,but will also attract more business and container volumes to Colombo Port, further strengtheningthe position of Colombo Port as an important hub in South Asia. In November 2023, ChinaMerchants Port (a holding subsidiary of the Company) acquired 51% of the shares of PT NusantaraPelabuhan Handal Tbk (NPH) at a consideration of approximately US$61.20 million and willbecome its controlling shareholder. NPH is a company listed on the Indonesia Stock Exchange andprincipally engaged in the provision of container, multipurpose and general terminal services andprovision of engineering services for port equipment. It operates two container terminals at JakartaPort, the largest port in Indonesia. This acquisition is a great progress for the Company to expand itsbusiness in Southeast Asia and will further enable the Company to share the dividends brought bythe rapid development of the RCEP region.
(4) In terms of operation management, facilitating intelligence-driven operation anddeepening lean management. By taking SMP as a starting point, the Company built a one-stopcomprehensive management platform of CMPort, supporting the business analysis of all modules,namely containers, bulk cargos, logistics park, comprehensive development and intelligenttechnology. SMP takes digital technology as the key force and applies smart tools to drive thetransformation of means, modes and concepts of the operation and management of CMPort. Atpresent, the Company has substantially realized the classification and management of informationof lifetime of assets, the standardization and online presence of major business processes. Besides,the Company also optimizes the engineering management system and strengthens lifecyclemanagement of major projects; optimizes its profitability and constantly developed measures toenhance its quality and efficiency; optimizes and reshapes its business and financial analysisframework to strictly control the increase of cost and expenses; deepens cost control to form anormalization mechanism of cost reduction and higher efficiency. The streamline operation of theCompany has achieved phased results.
(5) In terms of deepening reform, deeply implementing the “Double-Hundred Action” andstimulating Company vitality. The Company has deeply implemented the “Double-HundredAction”. By focusing on "improving the core competitiveness of the enterprise and enhancing corefunctions", the Company developed a reform implementation plan of the "Double Hundred Action"for CMPort (2023-2025) and working record, specifying the goals, tasks, timetable and road map inthe next round of reform. In 2023, the Company has achieved full coverage of tenure system and
contractual management, improved the market-oriented salary distribution mechanism, strengthenedthe performance salary dual benchmarking, and explored the construction of a diversified andinternational incentive system that combines short and medium term incentives, and supplementscash and equity incentives. In May 2023, SASAC of the State Council released the special appraisalresults of “Double-Hundred Enterprises” of 2022 and the Company received “Excellent”title for its outstanding achievements and remarkable reform results.
(6) In terms of comprehensive development, domestic parks advancing together and overseasparks developing against the trend. China Merchants Bonded has achieved effective utilization ofnew warehouses at a rate of over 95%. The export service platform for new energy vehicles hasperformed well. Qingdao Bonded has maintained a stable occupancy rate, and diversifiedself-operated business, achieving a doubled inbound logistics year-on-year. The Hambantota PortIndustrial Park has further explored the market, and realized a significant improvement on thequality of customers. In 2023, 12 new customers have signed contracts to settle in the park,contributing to a total of 51 companies settled in; the Djibouti International Free Trade Zone hassigned contracts with 351 companies, with container yard fully occupied and warehouse occupiedover 96%.
(7) In terms of ESG construction, actively implementing the ESG concept and having wonmultiple awards. In 2023, under the guidance of the ESG strategic plan, the Company furtherimproved the comprehensive ESG management system, compiled an ESG work manual andpromoted the ESG upgrade of overseas projects. By focusing on main port business and industrypriorities, the Company fully leveraged its sufficient resources to promote more distinctive ESGpractices. The Company has been selected into the "China ESG Listed Companies First 100" listand "China Top 100 ESG Listed Companies", and has also been included in the "CSI SecuritiesTimes ESG Top 100 Index". In 2023, the MSCI rating of China Merchants Port (the Company'sholding subsidiary), was upgraded by two levels from "CCC" to "BB".
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 margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
| By operating division | ||||||
| Port operations | 15,036,273,586.66 | 8,796,081,230.13 | 41.50% | -3.78% | -3.90% | 0.08% |
| By operating segment | ||||||
| Mainland China, Hong Kong and Taiwan | 10,958,608,605.93 | 7,201,809,031.78 | 34.28% | -9.47% | -7.22% | -1.60% |
| Other countries and regions | 4,791,867,174.29 | 2,116,377,675.97 | 55.83% | 16.16% | 12.09% | 1.60% |
3. YoY Changes to the Scope of Consolidated Financial StatementsThe Proposal on the Transfer of 45% Equity Interest in Ningbo Daxie China MerchantsInternational Terminals Co., Ltd. by a Majority-owned Subsidiary through Public Tender wasapproved at the Second Extraordinary Meeting of the 10th Board of Directors of the Company in2023 dated 20 March 2023. As such, Cyber Chic Company Limited (hereinafter referred to as“Cyber Chic”), a subsidiary of the Company, was approved to transfer its 45% equity interest inNingbo Daxie China Merchants International Container Terminal Co., Ltd. (hereinafter referred toas “CMICT”) through public tender on the China Beijing Equity Exchange. On 20 April 2023,Cyber Chic put its 45% equity interest in CMICT to a public tender on the China Beijing EquityExchange. On 19 May 2023, Ningbo Zhoushan Port Company Limited (hereinafter referred to as“Ningbo Zhoushan Port”) became the transferee, with a transaction price of RMB1,845 million.On 25 May 2023, CYBER CHIC and Ningbo Zhoushan Port entered into the Equity TransactionContract. On 8 August 2023, CMICT changed its registered information with the competentindustrial and commercial administration and received its new business license upon the equitytransfer, with its name changed to “Ningbo Daxie Container Terminal Co., Ltd.” (hereinafterrefer to as “Ningbo Daxie”). As such, the equity transfer has been completed and Cyber Chic nolonger holds equity interest in Ningbo Daxie, and Ningbo Daxie is no longer a subsidiary within thescope of the Company’s consolidated financial statements.On 26 September 2023, the Company held the 4th Extraordinary Meeting of the 11th the Board ofDirectors for 2023 to review and approve the Proposal on the Transfer and Acquisition of EquityInterests in Relevant Subsidiaries and Related-party Transactions (the “Transaction”).Accordingly, China Merchants International Technology Company Limited (CMIT) subordinate tothe Company, transferred 100% share of Yingkou Port Information Technology Co., Ltd. (YPIT),and 79.03% share of Dalian Port Logistics Network Co., Ltd. (DPN) to Liaoning Port Co., Ltd.(Liaoning Port). Besides, the Company acquired 22.3779%, 13.2563% and 7.4495% (43.0837% inaggregate) of the share in CMIT held respectively by Dalian Port Container Development Co., Ltd.(DPCD), Dalian Port Jifa Logistics Co., Ltd. (Jifa Logistics) and Yingkou Port Group Co., Ltd.(Yingkou Port Group). DPCD, Jifa Logistics and Yingkou Port Group are all majority-ownedsubsidiaries of the related party, Liaoning Port Group Co., Ltd. (Liaoning Port Group) Limited. InNovember 2023, YPIT and DPN completed the business registration changes in connection with theTransaction. As a result, YPIT and DPN were no longer subsidiaries included in the Company’sconsolidated financial statements.
China Merchants Port Group Co., Ltd.Board of DirectorsDated 2 April 2024