Stock Code: 001872/201872 Stock Name: CM Port Group/CM Port Group B Announcement No. 2022-043
CHINA MERCHANTS PORT GROUP CO., LTD.THE REPORT FOR THE FIRST QUARTER OF 2022
China Merchants Port Group Co., Ltd. (hereinafter referred to as the “Company”) and all the members of theCompany’s Board of Directors hereby guarantee that the contents of this Report are factual, accurate andcomplete and free of any misrepresentations, misleading statements or material omissions.Important Notes:
1. The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors andsenior management of the Company hereby guarantee the factuality, accuracy and completeness of the contents ofthis Report, and shall be jointly and severally liable for any misrepresentations, misleading statements or materialomissions therein.
2. Wang Xiufeng, the Company’s legal representative, Tu Xiaoping, the Company’s Chief Financial Officer andthe person-in-charge of the accounting organ hereby guarantee that the financial statements carried in this Reportare factual, accurate and complete.
3. Indicate by tick mark whether the financial statements herein have been audited by an independent auditor.
□Yes √ No
4. Securities Times, China Securities Journal, Shanghai Securities News, Ta Kung Pao (HK) andwww.cninfo.com.cn have been designated by the Company for information disclosure. And all information aboutthe Company shall be subject to what’s disclosed on the aforesaid media.This Report has been prepared in both Chinese and English. Should there be any discrepancies ormisunderstandings between the two versions, the Chinese version shall prevail.I Key Financial Information(I) Key Accounting Data and Financial IndicatorsIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| Q1 2022 | Q1 2021 | YoY change (%) | |
| Operating revenue (RMB) | 4,020,203,113.25 | 3,574,128,378.48 | 12.48% |
| Net profit attributable to the listed company’s shareholders (RMB) | 859,493,121.60 | 532,867,484.84 | 61.30% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 838,801,864.90 | 524,972,071.00 | 59.78% |
| Net cash generated from/used in operating activities (RMB) | 999,264,265.35 | 880,940,193.44 | 13.43% |
Basic earnings per share (RMB/share)
| Basic earnings per share (RMB/share) | 0.45 | 0.28 | 60.71% |
| Diluted earnings per share (RMB/share) | 0.45 | 0.28 | 60.71% |
| Weighted average return on equity (%) | 2.13% | 1.42% | 0.71% |
| 31 March 2022 | 31 December 2021 | Change (%) | |
| Total assets (RMB) | 182,092,449,357.11 | 175,984,101,168.66 | 3.47% |
| Equity attributable to the listed company’s shareholders (RMB) | 41,086,608,794.81 | 39,801,188,662.13 | 3.23% |
The total share capital at the end of the last trading session before the disclosure of this Report:
| Total share capital at the end of the last trading session before the disclosure of this Report (share) | 1,922,365,124 |
Fully diluted earnings per share based on the latest total share capital above:
| Dividend of preference shares paid (RMB) | No preference shares |
| Interest of perpetual bonds paid (RMB) | No perpetual bonds |
| Fully diluted earnings per share based on the latest total share capital above (RMB/share) | 0.4471 |
(II) Exceptional Gains and Losses
Unit: RMB
| Item | Q1 2022 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -959,260.23 | - |
| Tax rebates, reductions or exemptions due to approval beyond authority or the lack of official approval documents | - | |
| Government subsidies charged to current profit or loss (exclusive of government subsidies continually given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s policies and standards) | 36,589,084.26 | - |
| Capital occupation charges on non-financial enterprises that are charged to current profit or loss | 55,071,144.47 | - |
| Gains due to that the investment costs for the Company to obtain subsidiaries, associates and joint ventures are lower than the enjoyable fair value of the identifiable net assets of the investees when making the investments | - | |
| Gain/Loss on non-monetary asset swap | - | |
| Gain/Loss on entrusting others with investments or asset management | - |
Asset impairment provisions due to acts of God such as naturaldisasters
| Asset impairment provisions due to acts of God such as natural disasters | - | |
| Gain/Loss from debt restructuring | - | |
| Expenses on business reorganization, such as expenses on staff arrangements, integration, etc. | - | |
| Gain/Loss on the part over the fair value due to transactions with distinctly unfair prices | - | |
| Current profit or loss on subsidiaries obtained in business combinations involving enterprises under common control from the period-beginning to combination dates, net | - | |
| Gain/Loss incurred from contingency unrelated to the Company’s normal operating businesses. | - | |
| Gain or loss on fair-value changes in held-for-trading financial assets and liabilities & income from disposal of held-for-trading financial assets and liabilities and available-for-sale financial assets (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | -28,601,507.19 | - |
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | - | |
| Gain/loss on entrustment loans | - | |
| Gain/loss on change in fair value of investment property of which the subsequent measurement is carried out adopting fair value method | - | |
| Effect on current profit or loss when a one-off adjustment is made to current profit or loss according to requirements of taxation, accounting and other relevant laws and regulations | - | |
| Custodian fees earned from entrusted operation | - | |
| Non-operating income and expense other than the above | 2,039,713.13 | - |
| Other gains and losses that meet definition of exceptional gains and losses | - | |
| Less: Income tax effects | 9,044,805.13 | - |
| Non-controlling interests effects (net of tax) | 34,403,112.61 | - |
| Total | 20,691,256.70 | -- |
Other items that meet the definition of exceptional gain/loss:
□ Applicable √ Not applicable
No such cases.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases.(III) Changes in Key Financial Statement Line Items and Their Explanation
Unit: RMB
Balance sheet items
| Balance sheet items | 31 March 2022 | 31 December 2021 | Change (%) | Explanation of changes |
| Accounts receivable | 1,833,329,170.36 | 1,320,577,577.81 | 38.83% | Increase in revenue |
| Other current liabilities | 5,146,776,107.61 | 2,158,497,775.85 | 138.44% | New short-term financing |
| Income statement items | Q1 2022 | Q1 2021 | Change (%) | Explanation of changes |
| Investment income | 1,700,408,075.14 | 1,041,036,342.43 | 63.34% | Increased amount of the share of profits of associates and joint ventures |
| Gains from changes in fair value | -28,601,507.19 | -168,400,154.98 | 83.02% | The measurement method adopted for concession royalties liabilities of TCP Participa??es S.A. was changed to the amortized cost method. |
| Cash flow statement items | Q1 2022 | Q1 2021 | Change (%) | Explanation of changes |
| Cash receipts from disposals and recovery of investments | 16,908,644,162.50 | 1,730,000,000.00 | 877.38% | Maturity of structured deposits |
| Cash receipts from investments income | 90,541,536.09 | 1,083,443,879.50 | -91.64% | Decreased dividends from associates and joint ventures |
| Cash payments to acquire investments | 16,688,874,317.28 | 977,561,289.86 | 1607.19% | Purchase of structured deposits |
| Cash receipts from borrowings | 9,466,988,902.00 | 4,513,459,100.62 | 109.75% | Increase in short-term borrowings |
II Shareholder Information(I) Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed VotingRights as well as Holdings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders | 32,309 (20,796 A-shareholders, 11,513 B-shareholders) | Number of preferred shareholders with resumed voting rights (if any) | 0 |
Top 10 shareholders
| Top 10 shareholders | ||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Private shares held | Shares in pledge, marked or frozen | |
| CHINA MERCHANTS PORT INVESTMENT DEVELOPMENT COMPANY LIMITED | Foreign legal person | 59.75% | 1,148,648,648 | 1,148,648,648 | 0 | |
| CHINA MERCHANTS GANGTONG DEVELOPMENT (SHENZHEN) CO., LTD. | State-owned legal person | 19.29% | 370,878,000 | 0 | 0 | |
| SHENZHEN INFRASTRUCTURE INVESTMENT FUND-SHENZHEN INFRASTRUCTURE INVESTMENT FUND PARTNERSHIP (LIMITED PARTNERSHIP) | Funds, wealth management products | 3.37% | 64,850,182 | 0 | 0 | |
| CHINA-AFRICA DEVELOPMENT FUND | State-owned legal person | 3.33% | 64,102,564 | 0 | 0 | |
| BROADFORD GLOBAL LIMITED | State-owned legal person | 2.88% | 55,314,208 | 0 | 0 | |
| ZHU HUI | Domestic natural person | 0.15% | 2,958,003 | 0 | Unknown | |
| CHINA MERCHANTS SECURITIES (HK) CO., LTD. | State-owned legal person | 0.13% | 2,585,555 | 0 | Unknown | |
| ARROWSTREET EMERGING MARKET ALPHA EXTENSION TRUST FUND | Foreign legal person | 0.11% | 2,192,691 | 0 | Unknown | |
| MAI SHUQING | Domestic natural person | 0.11% | 2,129,247 | 0 | Unknown | |
| HONG KONG SECURITIES CLEARING COMPANY LTD. | Foreign legal person | 0.11% | 2,070,402 | 0 | Unknown | |
| Top 10 public shareholders | ||||||
| Name of shareholder | Public shares held | Shares by type | ||||
| Type | Shares | |||||
| CHINA MERCHANTS GANGTONG DEVELOPMENT (SHENZHEN) CO., LTD. | 370,878,000 | RMB ordinary share | 370,878,000 | |||
| SHENZHEN INFRASTRUCTURE | 64,850,182 | RMB ordinary | 64,850,182 | |||
INVESTMENT FUND-SHENZHENINFRASTRUCTUREINVESTMENT FUNDPARTNERSHIP (LIMITEDPARTNERSHIP)
| INVESTMENT FUND-SHENZHEN INFRASTRUCTURE INVESTMENT FUND PARTNERSHIP (LIMITED PARTNERSHIP) | share | ||
| 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 |
| ZHU HUI | 2,958,003 | RMB ordinary share | 2,958,003 |
| CHINA MERCHANTS SECURITIES (HK) CO., LTD. | 2,585,555 | Domestically listed foreign share | 2,585,555 |
| ARROWSTREET EMERGING MARKET ALPHA EXTENSION TRUST FUND | 2,192,691 | Domestically listed foreign share | 2,192,691 |
| MAI SHUQING | 2,129,247 | RMB ordinary share | 2,129,247 |
| HONG KONG SECURITIES CLEARING COMPANY LTD. | 2,070,402 | RMB ordinary share | 2,070,402 |
| SHEN HUAILING | 1,721,049 | Domestically listed foreign share | 1,721,049 |
| Related or acting-in-concert parties among the shareholders above | China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a controlled 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 shareholders engaged in securities margin trading (if any) | N/A | ||
(II) Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
III Other Significant Events(I) Details of the Stock Option Incentive Plan of the Company during the Reporting Period:
The 1st Extraordinary Meeting of the 10
th Board of Directors in 2022 and 1
st Extraordinary Meeting of the 10
th
Supervisory Committee in 2022 of the Company, held on 28 January 2022, reviewed and approved the Proposalon Adjusting the Exercise Prices of the Stock Option Incentive Plan (Phase I) of the Company, the Proposal onAdjusting the Numbers of Qualified Awardees and Stock Options to Be Granted of the Stock Option Incentive Plan(Phase I) of the Company, the Proposal on the Failure to Meet the Exercise Conditions for the First ExerciseSchedule of the Stock Options (the First Batch to be Granted) of the Stock Option Incentive Plan (Phase I) of theCompany, and the Proposal on Canceling Some Stock Options in the Stock Option Incentive Plan (Phase I) of theCompany. Independent directors gave independent opinions of agreement. The Supervisory Committee of theCompany verified the proposals and gave opinions. For details, see the relevant announcements disclosed by theCompany on Cninfo (www.cninfo.com.cn) (Announcement No. 2022-007, 2022-008, 2022-009, and 2022-010).On 14 February 2022, upon the review and confirmation of Shenzhen Branch of China Securities Depository andClearing Corporation Limited, the Company completed the cancellation of above stock options. For more details,please refer to the Announcement on Completing the Cancellation of Some Stock Options in the Stock OptionIncentive Plan (Phase I) of the Company (Announcement No. 2022-011) disclosed by the Company on Cninfo(www.cninfo.com.cn).(II) Progress, Influence and Solutions in respect of Significant Events
1. Index to Information Disclosure
In the Reporting Period, the Company disclosed the following significant events:
Announcement No.
| Announcement No. | Date | Title |
| 2022-001 | 8 January 2022 | Announcement on the Exit of Investment Fund |
| 2022-002 | 15 January 2022 | Announcement on Voluntary Information Disclosure of Business Volume Data of December 2021 |
| 2022-003 | 15 January 2022 | Reminder of the Issuance of 2022 Phase I Super-short-term Financing Bonds |
| 2022-004 | 20 January 2022 | Announcement on Issue Results of 2022 Phase I Super-short-term Financing Bonds |
| 2022-005 | 29 January 2022 | Announcement on Resolutions of the 1st Special Meeting of the 10th Board of Directors in 2022 |
| 2022-006 | 29 January 2022 | Announcement on Resolutions of the 1st Special Meeting of the 10th Supervisory Committee in 2022 |
| 2022-007 | 29 January 2022 | Announcement on Adjusting the Exercise Prices of the Stock Option Incentive Plan (Phase I) of the Company |
2022-008
| 2022-008 | 29 January 2022 | Announcement on Adjusting the Numbers of Qualified Awardees and Stock Options to Be Granted of the Stock Option Incentive Plan (Phase I) of the Company |
| 2022-009 | 29 January 2022 | Announcement on the Failure to Meet the Exercise Conditions for the First Exercise Schedule of the Stock Options (the First Batch to be Granted) of the Stock Option Incentive Plan (Phase I) of the Company |
| 2022-010 | 29 January 2022 | Announcement on Canceling Some Stock Options in the Stock Option Incentive Plan (Phase I) of the Company |
| 2022-011 | 15 February 2022 | Announcement on Completing the Cancellation of Some Stock Options in the Stock Option Incentive Plan (Phase I) of the Company |
| 2022-012 | 15 February 2022 | Announcement on Voluntary Information Disclosure of Business Volume Data of January 2022 |
| 2022-013 | 1 March 2022 | Announcement on Resolutions of the 2nd Special Meeting of the 10th Board of Directors in 2022 |
| 2022-014 | 1 March 2022 | Announcement on Resolutions of the 2nd Special Meeting of the 10th Supervisory Committee in 2022 |
| 2022-015 | 1 March 2022 | Announcement on Resignation of Director and Supervisor and By-election of Director and Supervisor |
| 2022-016 | 2 March 2022 | Reminder of the Issuance of 2022 Phase II Super-short-term Financing Bonds |
| 2022-017 | 5 March 2022 | Announcement on Issue Results of 2022 Phase II Super-short-term Financing Bonds |
| 2022-018 | 15 March 2022 | Announcement on the Due Payment of 2021 Phase VII Super & Short-term Commercial Paper |
| 2022-019 | 15 March 2022 | Announcement on Voluntary Information Disclosure of Business Volume Data of February 2022 |
| 2022-020 | 19 March 2022 | Announcement on Progress of Incorporation of HK Wholly-owned Subsidiary and Adjustment to Ownership Structure of the Subsidiary |
| 2022-021 | 26 March 2022 | Announcement on Online Investor Meeting on 2021 Annual Results |
| 2022-022 | 26 March 2022 | Reminder of the Issuance of 2022 Phase III Super-short-term Financing Bonds |
| 2022-023 | 31 March 2022 | Announcement on Resolutions of the 5th Meeting of the 10th Board of Directors |
| 2022-024 | 31 March 2022 | Announcement on Resolutions of the 5th Meeting of the 10th Supervisory Committee |
| 2022-025 | 31 March 2022 | Announcement on 2021 Profit Distribution Plan |
| 2022-026 | 31 March 2022 | Abstract of 2021 Annual Report (Chinese and English Versions) |
| 2022-027 | 31 March 2022 | Announcement on the Confirmation of the Continuing Related-Party |
Transactions in 2021 and the Estimation of Such Transactions in2022
| Transactions in 2021 and the Estimation of Such Transactions in 2022 | ||
| 2022-028 | 31 March 2022 | Announcement on the Related-Party Transaction Regarding Making Deposits in and Obtaining Loans from China Merchants Bank in 2022 |
| 2022-029 | 31 March 2022 | Announcement on the External Guarantee Progress of a Majority-Owned Subsidiary of the Company in 2021 and the Expected New External Guarantee Line in the Next 12 Months |
| 2022-030 | 31 March 2022 | Announcement on Renewing the Financial Service Agreement and Related Party Transactions with China Merchants Group Finance Co., Ltd. |
| 2022-031 | 31 March 2022 | Special Report on Deposit and Usage of Raised Fund in 2021 |
| 2022-032 | 31 March 2022 | Announcement on Reappointment of Accounting Firm in 2022 |
| 2022-033 | 31 March 2022 | Notice on Convening the 2021 Annual General Meeting |
| 2022-034 | 31 March 2022 | Announcement on Provision for Asset Impairment for 2021 |
| 2022-035 | 31 March 2022 | Announcement on the Voluntary Information Disclosure of the 2021 Annual Results by the Majority-Owned Subsidiary |
2. Progress of any Share Repurchase
□ Applicable √ Not applicable
3. Progress of any Reduction of the Repurchased Shares through Centralized Bidding
□ Applicable √ Not applicable
(III) Financial Investments
1. Securities Investments
Unit: RMB
| Variety of securities | Code of securities | Name of securit | Initial investment cost | Accounting measurement method | Beginning carrying value | Gain/loss on fair value changes in the Reporting Period | Cumulative fair value changes recorded into equity | Purchased in the Reporting Period | Sold in the Reporting Period | Gain/loss in the | Ending carrying value | Accounting title | Funding source |
ies
| ies | Reporting Period | ||||||||||||
| Stock | 06198 | Qingdao Port | 124,405,138.80 | Fair value method | 145,443,863.52 | -8,051,515.78 | - | - | - | - | 136,959,885.55 | Other non-current financial assets | Self-funded |
| Stock | 601298 | Qingdao Port | 331,404,250.30 | Fair value method | 637,280,000.00 | -14,560,000.00 | - | - | - | - | 622,720,000.00 | Other non-current financial assets | Self-funded |
| Stock | 600377 | Jiangsu Expressway | 1,120,000.00 | Fair value method | 8,620,000.00 | - | -7,500,000.00 | - | 1,120,000.00 | - | - | Investment in other equity instruments | Self-funded |
| Stock | 400032 | Petrochemical A1 | 3,500,000.00 | Fair value method | 382,200.00 | - | - | - | - | - | 382,200.00 | Investment in other equity instruments | Self-funded |
| Stock | 400009 | Guang | 27,500.00 | Fair value meth | 17,000.00 | - | - | - | - | - | 17,000.00 | Investment in | Self-fun |
Jian
| Jian 1 | od | other equity instruments | ded | ||||||||||
| Stock | 600179 | Antong Holdings | 391,956.73 | Fair value method | 157,196.79 | -11,965.11 | - | 50,200,000.00 | - | - | 50,345,231.68 | Held-for-trading financial assets | Self-funded |
| Total | 460,848,845.83 | -- | 791,900,260.31 | -22,623,480.89 | -7,500,000.00 | 50,200,000.00 | 1,120,000.00 | - | 810,424,317.23 | -- | -- | ||
2. Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.(IV) Progress of Projects Financed with Raised Funds
1. Funds Raised through Private Placement of Shares
Pursuant to the Reply of China Securities Regulatory Commission on the Approval of Shenzhen Chiwan WharfHoldings Limited Offering Shares to China Merchants Investment Development Company Limited for AssetAcquisition and Raising the Matching Funds (ZJXK [2018] No. 1750) dated 31 October 2018, the Companyissued, in a private placement, a total of 128,952,746 shares of RMB-denominated ordinary shares (A-shares) totwo entities including China-Africa Development Fund at RMB17.16/share, raising a total ofRMB2,212,829,121.36 (with the net amount after deducting issuance costs being RMB2,185,997,340.15).Following the arrival of the aforesaid funds, BDO China Shu Lun Pan Certified Public Accountants LLP issued aCapital Verification Report (XKSBZ [2019] No. ZI10673).As of 31 March 2022, a total of RMB9,976,754,817.17 of raised funds had been used, including: (1)RMB582,722,414.48 as the replacement for the self-financings that had been in advance input into project to befinanced by raised funds; (2) RMB1,167,200,621.48 used after the arrival of the raised funds, including aninvestment of RMB1,167,200,621.48 in the Haixing Harbor Renovation Project (Phase II) (2019:
RMB324,533,139.29; 2020: RMB424,734,590.46; 2021: RMB262,949,228.42; Q1 2022: RMB154,983,663.31);
(3) RMB26,831,781.21 for paying issuance costs; (4) RMB7,130,000,000.00 for purchasing structured deposits(2019: RMB1,200,000,000.00; 2020: RMB2,650,000,000.00; 2021: RMB3,280,000,000.00); (5)RMB1,070,000,000.00 for purchasing seven days call deposits (2021: RMB900,000,000.00; Q1 2022:
RMB170,000,000.00).
As of 31 March 2022, the interest income in the account of raised funds minus service charges stood atRMB1,673,699.03 in Q1 2022; the amount of income from structured deposits was RMB41,738,931.50 in Q12022; and the amount of income from seven days call deposits was RMB28,583.34 in Q1 2022. As of 31 March2022, the balance in the account of raised funds amounted to RMB486,724,025.07. The use and balance of theraised funds are as follows:
Unit: RMB
Item
| Item | Amount |
| Opening balance of raised funds (31 December 2021) | 640,005,406.01 |
| Less: raised funds that were directly used for project to be financed by raised funds in Q1 2022 | 154,983,663.31 |
| Add: Income from seven days call deposits in Q1 2022 | 28,583.34 |
Net interest income from raised funds in Q1 2022
| Net interest income from raised funds in Q1 2022 | 1,673,699.03 |
| Closing balance of raised funds (31 March 2022) | 486,724,025.07 |
2. Funds Raised through Corporate Bonds
On 7 July 2020, the Company issued RMB2 billion of corporate bonds at the Shenzhen Stock Exchange, with acoupon rate of 3.36% and a term of three years. The funds raised would be used to acquire 1,606,855,919 ordinaryshares in Zhanjiang Port (accounting for 27.3544% of Zhanjiang Port’s total issued shares) from the issuer’swholly-owned subsidiary Chiwan Wharf Holdings (Hong Kong) Limited. As of 31 March 2022, the handover ofthe said equity interests has been completed.(V) Communications with the Investment Community such as Researches, Inquiries andInterviews Received during the Reporting Period
| Date | Place | Way of communication | Type of communication party | Communication party | Index to basic information of researches |
| 1 January 2022 to 31 March 2022 | China Merchants Port Building | By phone, or written inquiry (the EasyIR platform of SZSE or email) | Individual | - | Basic business condition, investments and the financial condition of the Company; Materials provided: None; Index: SZSE EasyIR (http://irm.cninfo.com.cn/ircs/index) |
| Times of communications | 20 | ||||
| Number of institutions communicated with | 0 | ||||
| Number of individuals communicated with | 20 | ||||
| Number of other communication parties | 0 | ||||
| Tip-offs or leakages of substantial confidential information during the communications | No | ||||
(VI) Progress Made on Internal Control
The focuses of risk control for Q1 2022 are as follows:
1. Establishment of internal control system
As of 31 March 2022, a total of 25 units were included in the assessment of the risk control system, covering theCompany's subsidiaries. The annual risk control planning and the formulation of the work plan were completed.Additionally, the lists of members of the steering and working groups of the self-assessment of risk managementand internal control were adjusted, according to the staff turnover of the Company and its subsidiaries.
2. Further Improvement in coverage of internal control evaluation processIn 2022, the subsidiaries included in the self-assessment of the internal control system of the Company havestreamlined the procedures of all businesses and covered their respective core businesses in the scope of internalcontrol assessment. A priority task in Q1 2022 was the internal control self-assessment by all departments of theHeadquarters of the Company, during which procedure design and implementation were streamlined andinspected. In addition, procedure manuals were timely updated in line with changes in the actual business.
3. Carrying out the establishment and evaluation of internal control system on a regular basisAs of 31 March 2022, all units have renewed their internal control self-evaluation working papers in accordancewith the annual internal control evaluation plan and changes in business process and carried out the internalcontrol self-evaluation work on a quarterly basis. The internal control working group of the Company hasreviewed the internal control working papers submitted by each unit and notified the problems existing in theself-evaluation of each unit.
4. Completing the internal control as planned
The Company, as scheduled, orderly promoted 31 key risk control tasks for the year. As of 31 March 2022, itsupported external project groups of internal control audit to complete internal control audit-related tasks andobtained reports on internal control audit on time. In conformity with the "Three-year Full-Coverage" Plan for theSupervision and Inspection of the Internal Control System, the internal control inspection over the development ofthe Shenzhen Chiwan Port Development Co., Ltd. was completed, and a list of deficiencies identified through theinternal control assessment was compiled. Meanwhile, the Annual Risk Control Work Arrangement Conferencewas held. The risk control personnel of all organizations received the training of courses on corporate risk control.(VII) Deposits in and Loans Provided by a Finance CompanyThe Proposal on Signing Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd. was reviewed andapproved on the 2
nd Meeting of the 9
thBoard of Directors held by the Company on 23 August 2017, in which, theCompany was agreed to signed the Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd.(renamed China Merchants Group Finance Co., Ltd. from August 2017) with the period of three years.The Proposal on Adjusting Limit of Deposits and Loans and Signing Supplementary Agreement to FinancialService Agreement with China Merchants Group Finance Co., Ltd and the Related-party Transactions wasreviewed and approved on the 5
th Meeting of the 9
thBoard of Directors held by the Company on 28 March 2019,
in which, the Company was agreed to signed Supplementary Agreement to Financial Service Agreement withChina Merchants Group Finance Co., Ltd.The Proposal on Adjusting Limit of Deposits and Loans and Signing Supplementary Agreement II to FinancialService Agreement with China Merchants Group Finance Co., Ltd and the Related-party Transactions wasreviewed and approved on the 11
th Extraordinary Meeting of the 9
th Board of Directors in 2019 and the 4
th
Extraordinary General Meeting of 2019 held by the Company respectively on 22 November 2019 and 11December 2019, in which, the Company was agreed to signed Supplementary Agreement II to Financial ServiceAgreement with China Merchants Group Finance Co., Ltd.The Company held the 5
th Meeting of the 10
thBoard of Directors and the 2021 Annual General Meetingrespectively on 29 March and 21 April 2022, respectively, reviewing and approving the Proposal on Renewing theFinancial Service Agreement and Related Party Transactions with China Merchants Group Finance Co., Ltd. andagreeing with the renewal of the Financial Service Agreement, with a term of three years, with China MerchantsGroup Finance Co., Ltd. ("CMG Finance").At the end of the Reporting Period, deposits in and loans provided by China Merchants Group Finance Co., Ltd.were as follows:
Unit: RMB’0,000
Item
| Item | Beginning balance | Q1 Increase | Q1 Decrease | Ending balance |
| I. Deposits in China Merchants Group Finance Co., Ltd. | 217,823.09 | 520,708.57 | 622,254.54 | 116,277.12 |
| II. Loans provided by China Merchants Group Finance Co., Ltd. | 396,421.70 | 14178.37 | 114,634.80 | 295965.27 |
IV Quarterly Financial Statements(I) Financial Statements
1. Consolidated Balance Sheet
Prepared by China Merchants Port Group Co., Ltd.
31 March 2022
Unit: RMB
Item
| Item | 31 March 2022 | 31 December 2021 |
| Current assets: | ||
| Cash and bank balances | 16,297,751,964.47 | 12,772,349,406.77 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Held-for-trading financial assets | 5,162,880,867.29 | 6,921,831,502.55 |
| Derivative financial assets | ||
| Notes receivable | 4,731,611.95 | 6,081,611.95 |
| Accounts receivable | 1,833,329,170.36 | 1,320,577,577.81 |
| Receivables financing | 237,228,226.50 | 238,429,402.71 |
| Prepayments | 89,448,942.83 | 51,606,794.20 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 734,290,028.25 | 696,276,595.87 |
| Including: Interest receivable | ||
| Dividend receivable | 245,754,564.05 | 264,626,493.85 |
| Financial assets purchased under resale agreements | ||
| Inventories | 214,271,478.26 | 194,920,136.12 |
| Contract assets | ||
| Assets held for sale | 337,442,757.28 | 337,442,757.28 |
| Non-current assets due within one year | 79,799,353.24 | 102,356,461.97 |
| Other current assets | 332,074,649.22 | 339,684,297.41 |
| Total current assets | 25,323,249,049.65 | 22,981,556,544.64 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | ||
| Long-term receivables | 6,193,605,753.05 | 6,162,713,861.02 |
| Long-term equity investments | 73,613,734,189.52 | 70,353,451,824.52 |
Investments in other equity instruments
| Investments in other equity instruments | 171,625,961.43 | 180,251,798.43 |
| Other non-current financial assets | 786,471,266.90 | 809,515,244.87 |
| Investment properties | 5,252,221,130.02 | 5,298,238,414.88 |
| Fixed assets | 31,505,707,256.01 | 31,710,513,230.29 |
| Construction in progress | 2,615,862,787.57 | 2,557,584,953.92 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 8,749,843,845.04 | 8,743,077,542.19 |
| Intangible assets | 18,728,171,994.66 | 18,475,412,380.93 |
| Development expenditure | 86,214,834.04 | 82,391,225.85 |
| Goodwill | 6,441,272,105.55 | 6,024,160,942.07 |
| Long-term prepaid expenses | 973,530,705.15 | 975,994,541.52 |
| Deferred tax assets | 397,304,208.76 | 398,145,710.84 |
| Other non-current assets | 1,253,634,269.76 | 1,231,092,952.69 |
| Total non-current assets | 156,769,200,307.46 | 153,002,544,624.02 |
| Total assets | 182,092,449,357.11 | 175,984,101,168.66 |
| Current liabilities: | ||
| Short-term borrowings | 12,879,494,775.70 | 13,651,452,805.36 |
| Borrowings from the central bank | ||
| Interbank loans obtained | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 1,895,987.17 | |
| Accounts payable | 713,473,645.42 | 843,820,438.51 |
| Receipts in advance | 14,067,197.75 | 9,313,166.01 |
| Contract liabilities | 172,798,076.68 | 196,784,525.26 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and interbank deposits | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 600,080,059.05 | 820,416,415.47 |
| Taxes payable | 2,083,110,973.41 | 2,162,719,251.68 |
| Other payables | 2,010,303,559.98 | 2,140,108,341.08 |
| Including: Interest payable | ||
| Dividends payable | 194,303,033.81 | 48,803,019.31 |
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale |
Non-current liabilities due within oneyear
| Non-current liabilities due within one year | 8,391,131,832.68 | 8,268,209,284.17 |
| Other current liabilities | 5,146,776,107.61 | 2,158,497,775.85 |
| Total current liabilities | 32,011,236,228.28 | 30,253,217,990.56 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 8,135,652,014.40 | 7,144,839,870.89 |
| Bonds payable | 16,687,182,068.36 | 16,670,872,414.14 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 1,045,874,394.81 | 1,055,194,906.09 |
| Long-term payables | 3,856,207,423.67 | 3,422,179,366.40 |
| Long-term employee benefits payable | 576,393,082.40 | 588,681,492.63 |
| Provisions | 106,971,600.94 | 24,247,302.42 |
| Deferred income | 1,064,415,486.55 | 1,075,957,884.91 |
| Deferred tax liabilities | 4,692,783,872.26 | 4,550,417,470.61 |
| Other non-current liabilities | 163,355,229.36 | 163,065,578.53 |
| Total non-current liabilities | 36,328,835,172.75 | 34,695,456,286.62 |
| Total liabilities | 68,340,071,401.03 | 64,948,674,277.18 |
| Shareholders' equity: | ||
| Share capital | 1,922,365,124.00 | 1,922,365,124.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserve | 23,595,961,912.22 | 23,592,702,758.70 |
| Less: Treasury stock | ||
| Other comprehensive income | -575,458,060.07 | -890,125,318.18 |
| Special reserve | 19,162,878.66 | 9,184,429.12 |
| Surplus reserves | 961,182,562.00 | 961,182,562.00 |
| General reserve | ||
| Unappropriated profit | 15,163,394,378.00 | 14,205,879,106.49 |
| Total shareholders' equity attributable to shareholders of the parent | 41,086,608,794.81 | 39,801,188,662.13 |
| Minority interests | 72,665,769,161.27 | 71,234,238,229.35 |
| Total shareholders' equity | 113,752,377,956.08 | 111,035,426,891.48 |
| Total liabilities and shareholders' equity | 182,092,449,357.11 | 175,984,101,168.66 |
Legal Representative: Wang XiufengChief Financial Officer: Tu XiaopingHead of Accounting Department: Tu Xiaoping
2. Consolidated income statement for Q1
Unit: RMB
Item
| Item | Q1 2022 | Q1 2021 |
| 1. Operating income | 4,020,203,113.25 | 3,574,128,378.48 |
| Including: Operating income | 4,020,203,113.25 | 3,574,128,378.48 |
| Interest income | ||
| Premium income | ||
| Handling charge and commission income | ||
| 2. Costs and expenses | 3,257,382,937.14 | 2,845,927,469.64 |
| Including: Operating costs | 2,257,298,794.24 | 2,007,544,534.80 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Surrenders | ||
| Net claims paid | ||
| Net amount provided as policy reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharges | 70,163,530.02 | 41,717,436.22 |
| Selling expense | ||
| Administrative expenses | 392,572,623.71 | 377,820,396.13 |
| Research and development expenses | 52,342,387.05 | 44,463,870.59 |
| Finance expenses | 485,005,602.12 | 374,381,231.90 |
| Including: Interest expense | 557,552,810.49 | 434,147,689.21 |
| Interest income | 95,418,037.96 | 91,196,956.90 |
| Add: Other income | 37,313,921.78 | 26,409,425.41 |
| Investment income (Loss is marked with "-") | 1,700,408,075.14 | 1,041,036,342.43 |
| Including: Income from investments in associates and joint ventures | 1,632,844,747.42 | 1,036,720,640.64 |
| Income from the derecognition of financial assets at amortized cost (Loss is marked with "-") | ||
| Foreign exchange gain (Loss is marked with "-") | ||
| Net gain on exposure hedges (Loss is marked with "-") | ||
| Gains from changes in fair value (Loss | -28,601,507.19 | -168,400,154.98 |
is marked with "-" )
| is marked with "-" ) | ||
| Gains from impairment of credit (Loss is marked with "-" ) | -592,423.11 | -3,542,445.15 |
| Gains from impairment of assets (Loss is marked with "-" ) | ||
| Gains on disposal of assets (Loss is marked with "-" ) | -212,878.09 | 13,401,172.17 |
| 3. Operating profit (Loss is marked with "-") | 2,471,135,364.64 | 1,637,105,248.72 |
| Add: Non-operating income | 5,208,084.73 | 5,495,288.51 |
| Less: Non-operating expenses | 3,571,426.77 | 3,575,349.46 |
| 4. Gross profit (Loss is marked with "-") | 2,472,772,022.60 | 1,639,025,187.77 |
| Less: Income tax expenses | 304,563,099.35 | 265,348,021.64 |
| 5. Net profit (Loss is marked with "-") | 2,168,208,923.25 | 1,373,677,166.13 |
| 5.1 Categorization by continuity of operation | ||
| 5.1.1 Net profit from continuing operation (Loss is marked with "-") | 2,168,208,923.25 | 1,373,677,166.13 |
| 5.1.2 Net profit from discontinued operation (Loss is marked with "-") | ||
| 5.2 Categorization by attribution of ownership | ||
| 5.2.1 Net profit attributable to owners of the parent | 859,493,121.60 | 532,867,484.84 |
| 5.2.2 Profit or loss attributable to minority shareholders | 1,308,715,801.65 | 840,809,681.29 |
| 6. Other comprehensive income, net of tax | 667,572,753.98 | -384,544,155.52 |
| Other comprehensive income attributable to owners of the parent, net of tax | 412,689,408.02 | -100,904,072.35 |
| 6.1 Other comprehensive income that will not be reclassified to profit or loss | -101,330.09 | 555,000.00 |
| 6.1.1 Changes from remeasurement of the defined benefit plan | ||
| 6.1.2 Other comprehensive income that cannot be reclassified to profit or loss under the equity method | ||
| 6.1.3 Fair value changes of investments in other equity instruments | -101,330.09 | 555,000.00 |
| 6.1.4 Changes in the fair value of the company’s credit risks | ||
| 6.1.5 Other | ||
| 6.2 Other comprehensive income that will be reclassified subsequently to profit or loss | 412,790,738.11 | -101,459,072.35 |
6.2.1 Other comprehensive income that can be
reclassified to profit or loss under the equity method
| 6.2.1 Other comprehensive income that can be reclassified to profit or loss under the equity method | 6,527,928.11 | 4,801,689.64 |
| 6.2.2 Changes in the fair value of investments in other debt obligations | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Allowance for credit impairments in investments in other debt obligations | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Translation differences of financial statements denominated in foreign currencies | 406,262,810.00 | -106,260,761.99 |
| 6.2.7 Other | ||
| Other comprehensive income attributable to minority interests, net of tax | 254,883,345.96 | -283,640,083.17 |
| 7. Total comprehensive income attributable to | 2,835,781,677.23 | 989,133,010.61 |
| Shareholders of the parent | 1,272,182,529.62 | 431,963,412.49 |
| Minority shareholders | 1,563,599,147.61 | 557,169,598.12 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.45 | 0.28 |
| 8.2 Diluted earnings per share | 0.45 | 0.28 |
3. Consolidated Cash Flow Statement for Q1
Unit: RMB
Item
| Item | Q1 2022 | Q1 2021 |
| 1. Cash flows from operating activities: | ||
| Cash receipts from sales of goods and rendering of services | 3,599,371,273.07 | 3,264,569,109.89 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in borrowings from the central bank | ||
| Net increase in loans from other financial institutions | ||
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Interest, handling charges and commissions received | ||
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Receipts of tax refunds | 1,001,300.35 | 757,301.82 |
| Other cash receipts relating to operating activities | 244,231,744.88 | 166,292,401.99 |
| Sub-total of cash inflows | 3,844,604,318.30 | 3,431,618,813.70 |
| Cash payments for goods purchased and services received | 1,122,144,087.79 | 923,792,637.84 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and in interbank loans granted | ||
| Payments for claims on original insurance contracts | ||
| Net increase in interbank loans granted | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash payments to and on behalf of employees | 1,130,909,192.25 | 1,051,108,651.64 |
| Payments of various types of taxes | 391,860,341.00 | 396,738,259.71 |
| Other cash payments relating to operating activities | 200,426,431.91 | 179,039,071.07 |
| Sub-total of cash outflows | 2,845,340,052.95 | 2,550,678,620.26 |
| Net Cash Flows from Operating Activities | 999,264,265.35 | 880,940,193.44 |
| 2. Cash flows from investing activities: | ||
| Cash receipts from disposals and recovery of investments | 16,908,644,162.50 | 1,730,000,000.00 |
| Cash receipts from investments income | 90,541,536.09 | 1,083,443,879.50 |
Net cash receipts from disposal of fixed assets, intangible assetsand other long-term assets
| Net cash receipts from disposal of fixed assets, intangible assets and other long-term assets | 56,999.00 | 13,739,634.14 |
| Net cash receipts from disposal of subsidiaries and other operating units | ||
| Other cash receipts relating to investing activities | 92,386,492.18 | 184,258,181.77 |
| Sub-total of cash inflows | 17,091,629,189.77 | 3,011,441,695.41 |
| Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets | 542,182,983.32 | 762,007,467.39 |
| Cash payments to acquire investments | 16,688,874,317.28 | 977,561,289.86 |
| Net increase in pledged loans granted | ||
| Net cash payments for acquisitions of subsidiaries and other business units | 8,748,637.26 | |
| Other cash payments relating to investing activities | 9,373,443.62 | 5,967,866.95 |
| Sub-total of cash outflows | 17,240,430,744.22 | 1,754,285,261.46 |
| Net cash flows from investing activities | -148,801,554.45 | 1,257,156,433.95 |
| 3. Cash flows from financing activities: | ||
| Cash receipts from capital contributions | ||
| Including: Cash receipts from capital contributions from Minority shareholder of subsidiary | ||
| Cash receipts from borrowings | 9,466,988,902.00 | 4,513,459,100.62 |
| Other cash receipts relating to financing activities | ||
| Sub-total of cash inflows | 9,466,988,902.00 | 4,513,459,100.62 |
| Cash repayments of borrowings | 6,229,427,431.03 | 7,886,158,730.55 |
| Cash payments for distribution of dividends or profits or settlement of interest expenses | 484,875,519.45 | 519,589,430.57 |
| Including: Payments for distribution of dividends or profits to Minority shareholder of subsidiary | 2,881,000.00 | 37,213,769.69 |
| Other cash payments relating to financing activities | 57,936,905.74 | 1,760,847.73 |
| Sub-total of cash outflows | 6,772,239,856.22 | 8,407,509,008.85 |
| Net cash flows from financing activities | 2,694,749,045.78 | -3,894,049,908.23 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -25,315,406.26 | -4,855,902.26 |
| 5. Net increase in cash and cash equivalents | 3,519,896,350.42 | -1,760,809,183.10 |
| Add: Opening balance of Cash and Cash Equivalents | 12,727,355,238.36 | 11,899,943,358.25 |
| 6. Closing balance of cash and cash equivalents | 16,247,251,588.78 | 10,139,134,175.15 |
(II) Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of DirectorsChina Merchants Port Group Co., Ltd.
30 April 2022