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招港B：2023年年度审计报告(英文版)2 （下载公告）
公告日期:2024-04-02

CHINAMERCHANTSPORTGROUPCO.,LTD.FINANCIALSTATEMENTSANDAUDITOR'SREPORTFORTHEYEARENDED31DECEMBER2023

FINANCIALSTATEMENTSANDAUDITOR'SREPORTFORTHEYEARENDED31DECEMBER2023

CONTENTSPAGE(S)

AUDITOR'SREPORT1-6CONSOLIDATEDBALANCESHEET7-8BALANCESHEETOFTHECOMPANY9-10CONSOLIDATEDINCOMESTATEMENT11INCOMESTATEMENTOFTHECOMPANY12CONSOLIDATEDCASHFLOWSTATEMENT13CASHFLOWSTATEMENTOFTHECOMPANY14CONSOLIDATEDSTATEMENTOFCHANGESINSHAREHOLDERS'EQUITY15-16THECOMPANY'SSTATEMENTOFCHANGESIN

SHAREHOLDERS'EQUITY17-18NOTESTOTHEFINANCIALSTATEMENTS19-189

-1-

AUDITOR'SREPORT

DeShiBao(Shen)Zi(24)No.P03112

(Page1of6)ToalltheshareholdersofChinaMerchantsPortGroupCo.,Ltd.,I.AuditOpinionWehaveauditedthefinancialstatementsofChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoas"theCompany"),whichcomprisetheconsolidatedandCompany'sbalancesheetsasat31December2023,andtheconsolidatedandCompany'sincomestatements,theconsolidatedandCompany'scashflowstatementsandtheconsolidatedandCompany'sstatementsofchangesinshareholders'equityfortheyearthenended,andthenotestothefinancialstatements.Inouropinion,theaccompanyingfinancialstatementsoftheCompanyarepreparedandpresentfairly,inallmaterialrespects,theconsolidatedandCompany'sfinancialpositionasat31December2023,andtheconsolidatedandCompany'sresultsofoperationsandcashflowsfortheyearthenendedinaccordancewiththeAccountingStandardsforBusinessEnterprises.II.BasisfortheOpinionWeconductedourauditinaccordancewithChinaStandardsonAuditing.OurresponsibilitiesunderthosestandardsarefurtherdescribedintheAuditor'sResponsibilitiesfortheAuditoftheFinancialStatementssectionofourreport.WeareindependentoftheCompanyinaccordancewithChinaCodeofEthicsforCertifiedPublicAccountants,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeCode.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.III.KeyAuditMattersKeyauditmattersarethosemattersthat,inourprofessionaljudgment,wereofmostsignificanceinourauditofthefinancialstatementsofthecurrentyear.Thesematterswereaddressedinthecontextofourauditofthefinancialstatementsasawhole,andinformingouropinionthereon,wedonotprovideaseparateopiniononthesematters.Wedeterminethefollowingsarekeyauditmattersthatneedtobeaddressedinourreport.

1.Subsequentmeasurementoflong-termequityinvestmentsinassociatesAsdisclosedinNote(VIII)12totheconsolidatedfinancialstatements,asat31December2023,thecarryingamountoftheCompany'slong-termequityinvestmentsinassociatesamountstoRMB87,708,124,441.05,accountingfor69.85%ofthetotalshareholder'sequity.In2023,theinvestmentincomefromassociatesrecognizedundertheequitymethodamountstoRMB5,582,402,904.90,accountingfor74.48%oftheconsolidatednetprofit.SincetheamountofincomefrominvestmentsinassociatesrecognizedbytheCompanyfortheyearissignificant,anditscorrectnessdependsonthefinancialstatusandoperatingresultsoftheinvestee,wedeterminetheabove-mentionedsubsequentmeasurementofthelong-termequityinvestmentsinassociatesasakeyauditmatteroftheconsolidatedfinancialstatements.

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AUDITOR'SREPORT-continued

DeShiBao(Shen)Zi(24)No.P03112

(Page2of6)III.KeyAuditMatters-continued

1.Subsequentmeasurementoflong-termequityinvestmentsinassociates-continuedPrincipalauditproceduresweperformedfortheabovekeyauditmatterareasfollows:

(1)Understoodthecertifiedpublicaccountantsofmajorassociatesandevaluatedtheir

independenceandprofessionalcompetence;

(2)Identifiedandassessedtheriskofmaterialmisstatementinthefinancialstatementsofthemajor

associatesfromtheperspectiveofauditingtheconsolidatedfinancialstatementsoftheCompanybyreadingthefinancialstatementsofthemajorassociatesanddiscussingwiththemanagementaboutthefinancialperformanceofthemajorassociatesandthesignificantjudgmentsandestimatesmadeinthepreparationofthefinancialstatements;

(3)Discussedwiththecomponentcertifiedpublicaccountantsofthemajorassociatesabouttheir

assessmentofthecomponentauditrisk,theidentificationofkeyauditareasandtheimplementationofthecorrespondingauditprocedurestoevaluatewhethertheauditofthecomponentcertifiedpublicaccountantswasappropriate;

(4)Verifiedwhethertheaccountingpoliciesandaccountingperiodsadoptedbythemajor

associateswereconsistentwiththoseoftheCompany.Ifnot,checkedwhetherthefinancialstatementsofthemajorassociateshavebeenadjustedaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompany,andrecognizedtheamountofinvestmentincomeunderequitymethodonthatbasis.

2.GoodwillimpairmentAsdisclosedinNote(VIII)20totheconsolidatedfinancialstatements,asat31December2023,thegoodwillpresentedintheconsolidatedfinancialstatementsoftheCompanyisRMB6,493,002,246.44.ThemanagementoftheCompanyusesthenetamountoffairvaluelesscostsofdisposalorthepresentvalueoftheestimatedfuturecashflowstodeterminetherecoverableamountoftherelevantassetgroupwhentestingthegoodwillforimpairment,ofwhichthefairvalueassessmentisbasedonthemarketapproach,andtheforecastoffuturecashflowsandthecalculationofthepresentvalueincludekeyassumptions,suchasgrowthrateanddiscountrate.Wedeterminegoodwillimpairmentasakeyauditmatteroftheconsolidatedfinancialstatementsduetothesignificantamountofgoodwillandthatthemanagementneedstomakesignificantjudgmentsandestimateswhenconductinggoodwillimpairmenttesting.

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AUDITOR'SREPORT-continued

DeShiBao(Shen)Zi(24)No.P03112

(Page3of6)III.KeyAuditMatters-continued

2.Goodwillimpairment-continuedPrincipalauditproceduresweperformedfortheabovekeyauditmatterareasfollows:

(1)Assessedthereasonablenessofthedivisionofassetgroupandcombinationofassetgroupmade

bythemanagement;

(2)Referredtotheindustrypracticetoassesswhetherthemanagement'sapproachincashflow

forecastwasappropriateandwhethertheassumptionsusedwerereasonable;

(3)Comparedthedatausedincashflowforecastwithhistoricaldataandbudgetdataapprovedby

themanagement,andassessedthereasonablenessofthedataused;

(4)Comparedthegrowthrateofthebusinessvolumeintheforecastperiodwiththegrowthrateof

thehistoricalbusinessvolumeandevaluateditsreasonableness;

(5)Understoodthebasisadoptedbythemanagementtodeterminethegrowthrateofthebusiness

inthesubsequentforecastperiodandassesseditsreasonableness;

(6)Assessedthereasonablenessofthediscountrateadoptedbythemanagementincombination

withmarketrisk-freeinterestrates,riskfactors,etc.;

(7)Usedtheworkofinternalevaluationexpertstoevaluatetheappropriatenessofthe

management'smethodtoassesstherecoverableamountoftheassetgroup,andevaluatethereasonablenessofthediscountrateusedbythemanagementinpredictingthepresentvalueofcashflowsandthegrowthrateofthesubsequentforecastperiod;

(8)Reviewedwhetherthecalculationofthepresentvalueoffuturecashflowswascorrect;

(9)Assessedwhetherthemethodusedtodeterminethefairvaluelesscostsofdisposalwas

appropriate;

(10)Assessedtheadequacyandappropriatenessofthedisclosureofgoodwillimpairmenttesting.IV.OtherInformationThemanagementoftheCompanyisresponsiblefortheotherinformation.Theotherinformationcomprisestheinformationincludedinthe2023annualreport,butdoesnotincludetheconsolidatedfinancialstatementsandourauditor'sreport.Ouropiniononthefinancialstatementsdoesnotcovertheotherinformationandwedonotexpressanyformofassuranceconclusion.

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AUDITOR'SREPORT-continued

DeShiBao(Shen)Zi(24)No.P03112

(Page4of6)IV.OtherInformation-continuedIncombinationwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheauditorotherwiseappearstobemateriallymisstated.If,basedontheauditworkperformed,weconcludethatthereisamaterialmisstatementofthisotherinformation,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.V.ResponsibilitiesoftheManagementandThoseChargedwithGovernanceforthe

FinancialStatementsThemanagementoftheCompanyisresponsibleforthepreparationofthefinancialstatementsthatgiveatrueandfairviewinaccordancewithAccountingStandardsforBusinessEnterprises,andforthedesign,performanceandmaintenanceofsuchinternalcontrolthatisnecessarytoenablethatthepreparationoffinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror.Inpreparingthefinancialstatements,themanagementisresponsibleforassessingtheCompany'sabilitytocontinueasagoingconcern,disclosing,asapplicable,mattersrelatedtogoingconcernandusingthegoingconcernbasisofaccountingunlessthemanagementeitherintendstoliquidatetheCompanyortoceaseoperations,orhasnorealisticalternativebuttodoso.ThesechargedwithgovernanceareresponsibleforoverseeingtheCompany'sfinancialreportingprocess.VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatementsOurobjectivesaretoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor'sreportthatincludesanauditopinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithChinaStandardsonAuditingwillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorintheaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthesefinancialstatements.

-5-

AUDITOR'SREPORT-continued

DeShiBao(Shen)Zi(24)No.P03112

(Page5of6)VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatements-continuedAspartofanauditinaccordancewithChinaStandardsonAuditing,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

(1)Identifiedandassessedtherisksofmaterialmisstatementofthefinancialstatements,whether

duetofraudorerror,designedandperformedauditproceduresresponsivetothoserisks,andobtainedauditevidencethatwassufficientandappropriatetoformouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudwashigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

(2)Understoodaudit-relatedinternalcontrolinordertodesignauditproceduresthatwere

appropriateinthecircumstances.

(3)Evaluatedtheappropriatenessofaccountingpoliciesappliedandthereasonablenessof

accountingestimatesandrelateddisclosuresmadebythemanagement.

(4)Concludedontheappropriatenessofthemanagement'applicationofthegoingconcernbasisof

accounting.Basedonauditevidenceobtained,concludedonwhetherthematerialuncertaintyofeventsorconditionsthatmaycastsignificantdoubtontheCompany'sabilitytocontinueasagoingconcernexisted.Ifweconcludedthatamaterialuncertaintyexisted,wewererequiredtodrawattentioninourauditor'sreporttotherelateddisclosuresinthefinancialstatementsortomodifyouropinion,ifsuchdisclosureswereinadequate.Ourconclusionswerebasedontheauditevidenceobtaineduptothedateofourauditor'sreport.However,futureeventsorconditionsmaycausetheCompanytoceasetocontinueasagoingconcern.

(5)Evaluatedtheoverallpresentation(includingthedisclosures),structureandcontentofthe

financialstatements,andwhetherthefinancialstatementsrepresentedtheunderlyingtransactionsandeventsinamannerthatachievedfairpresentation.

(6)Obtainedsufficientappropriateauditevidenceregardingthefinancialinformationoftheentities

orbusinessactivitieswithintheCompanytoexpressanopiniononthefinancialstatements.Wewereresponsibleforthedirection,supervisionandperformanceofthegroupaudit.Weremainedsolelyresponsibleforourauditopinion.Wecommunicatedwiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifiedduringouraudit.Wealsoprovidedthosechargedwithgovernancewithastatementthatwehadcompliedwithrelevantethicalrequirementsofindependence,andcommunicatedwiththosechargedwithgovernanceoverallrelationshipsandothermattersthatmayreasonablybethoughttobearonourindependence,andwhereapplicable,relatedsafeguards.

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AUDITOR'SREPORT-continued

DeShiBao(Shen)Zi(24)No.P03112

(Page6of6)VI.Auditor'sResponsibilitiesfortheAuditoftheFinancialStatements-continuedFromthematterscommunicatedwiththosechargedwithgovernance,wedeterminedthosemattersthatwereofmostsignificanceintheauditofthefinancialstatementsofthecurrentyearandwerethereforethekeyauditmatters.Wedescribedthesemattersinourauditor'sreportunlesslaworregulationprecludedpublicdisclosureaboutthematterorwhen,inextremelyrarecircumstances,wedeterminedthatamattershouldnotbeaddressedinourreportbecausetheadverseconsequencesofdoingsowouldreasonablybeexpectedtooutweighthepublicinterestbenefitsofsuchcommunication.DeloitteToucheTohmatsuCPALLPChineseCertifiedPublicAccountant

(EngagementPartner)Shanghai,China

LiWeihuaChineseCertifiedPublicAccountant

WangHongmei29March2024Theauditor'sreportandtheaccompanyingfinancialstatementsareEnglishtranslationsoftheChineseauditor'sreportandstatutoryfinancialstatementspreparedunderaccountingprinciplesandpracticesgenerallyacceptedinthePeople'sRepublicofChina.Thesefinancialstatementsarenotintendedtopresentthefinancialpositionandresultsofoperationsandcashflowsinaccordancewithaccountingprinciplesandpracticesgenerallyacceptedinothercountriesandjurisdictions.IncasetheEnglishversiondoesnotconformtotheChineseversion,theChineseversionprevails.

-7-

AT31DECEMBER2023

ConsolidatedBalanceSheet

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemNotes31/12/202331/12/2022(Restated)
CurrentAssets:
Cashandbankbalances(VIII)116,079,646,178.2413,615,928,739.40
Held-for-tradingfinancialassets(VIII)24,568,806,108.842,998,781,599.63
Notesreceivable(VIII)3325,150,195.0936,395,000.00
Accountsreceivable(VIII)41,103,901,466.251,276,149,689.44
Receivablesfinancing(VIII)52,001,669.46163,766,913.10
Prepayments(VIII)637,664,552.3063,627,425.42
Otherreceivables(VIII)7940,014,994.01948,842,094.30
Including:Interestreceivable(VIII)7--
Dividendsreceivable(VIII)7343,386,866.06416,040,485.62
Inventories(VIII)8218,898,192.87225,122,821.48
Non-currentassetsduewithinoneyear(VIII)917,451,380.98902,225,293.93
Othercurrentassets(VIII)10189,673,500.87185,903,140.53
Totalcurrentassets23,483,208,238.9120,416,742,717.23
Non-currentAssets:
Long-termreceivables(VIII)113,856,466,116.995,661,327,499.07
Long-termequityinvestments(VIII)1296,666,117,776.2792,364,293,919.05
Investmentsinotherequityinstruments(VIII)13157,461,648.16171,945,275.02
Othernon-currentfinancialassets(VIII)14877,576,442.831,745,740,896.41
Investmentproperties(VIII)154,958,374,968.795,123,690,119.56
Fixedassets(VIII)1628,986,538,326.3532,033,326,083.50
Including:Fixedassets-cost51,987,700,820.7655,185,206,442.91
Accumulateddepreciation22,787,694,400.0923,088,313,866.49
Provisionforimpairmentoffixedassets213,504,483.0863,574,868.76
Constructioninprogress(VIII)172,909,817,281.462,413,844,407.64
Right-of-useassets(VIII)189,441,668,311.229,342,642,222.33
Intangibleassets(VIII)1918,073,062,184.7219,277,065,115.61
Developmentexpenditure(IX)250,990,153.1817,412,196.16
Goodwill(VIII)206,493,002,246.446,411,426,891.09
Long-termprepaidexpenses(VIII)21993,793,505.29986,356,904.90
Deferredtaxassets(VIII)22415,063,477.03434,498,820.95
Othernon-currentassets(VIII)231,194,155,989.621,186,789,378.79
Totalnon-currentassets175,074,088,428.35177,170,359,730.08
TOTALASSETS198,557,296,667.26197,587,102,447.31

-8-

AT31DECEMBER2023

ConsolidatedBalanceSheet-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemNotes31/12/202331/12/2022(Restated)
Currentliabilities:
Short-termborrowings(VIII)2415,714,045,288.977,164,338,366.18
Notespayable(VIII)2573,461,165.82-
Accountspayable(VIII)26691,765,137.25811,149,397.66
Receiptsinadvance(VIII)2717,387,537.369,886,531.59
Contractliabilities(VIII)28142,080,101.00141,899,551.03
Employeebenefitspayable(VIII)29917,964,606.65936,834,718.13
Including:Payrollpayable883,913,277.13897,442,262.83
Welfarepayable--
Taxespayable(VIII)30923,053,572.50917,933,169.09
Otherpayables(VIII)311,654,622,170.021,755,885,258.26
Including:Interestpayable(VIII)31--
Dividendspayable(VIII)31111,897,214.2792,374,921.29
Non-currentliabilitiesduewithinoneyear(VIII)326,817,404,289.2511,641,223,688.95
Othercurrentliabilities(VIII)332,143,842,534.533,161,147,525.96
Totalcurrentliabilities29,095,626,403.3526,540,298,206.85
Non-currentLiabilities:
Long-termborrowings(VIII)3418,227,543,954.7112,390,099,177.85
Bondspayable(VIII)3514,287,508,564.1519,088,293,099.02
Including:Preferredshares--
Perpetualbonds--
Leaseliabilities(VIII)361,001,172,206.92948,350,914.04
Long-termpayables(VIII)373,822,862,202.173,551,315,590.31
Long-termemployeebenefitspayable(VIII)38603,009,921.91639,095,931.43
Provisions(VIII)3985,590,059.4135,365,156.43
Deferredincome(VIII)401,024,776,557.731,031,273,189.74
Deferredtaxliabilities(VIII)224,659,638,104.374,855,019,835.33
Othernon-currentliabilities(VIII)41179,634,263.73186,383,117.00
Totalnon-currentliabilities43,891,735,835.1042,725,196,011.15
TOTALLIABILITIES72,987,362,238.4569,265,494,218.00
Shareholders'equity:
Sharecapital(VIII)422,499,074,661.002,499,074,661.00
Including:Statecapital--
State-ownedcorporatecapital2,264,090,797.002,283,118,870.00
Collectivecapital--
Privatecapital218,857,094.00195,001,566.00
Foreigncapital16,126,770.0020,954,225.00
Capitalreserve(VIII)4337,076,846,803.0634,751,640,835.25
Othercomprehensiveincome(VIII)44-903,626,594.35-689,553,619.86
Specialreserve(VIII)4534,003,994.4126,358,259.97
Surplusreserve(VIII)461,095,980,563.681,001,917,449.15
Unappropriatedprofit(VIII)4719,045,313,519.7516,701,988,301.14
TotalequityattributabletoshareholdersoftheCompany58,847,592,947.5554,291,425,886.65
Minorityinterests66,722,341,481.2674,030,182,342.66
TOTALSHAREHOLDERS'EQUITY125,569,934,428.81128,321,608,229.31
TOTALLIABILITIESANDSHAREHOLDERS'EQUITY198,557,296,667.26197,587,102,447.31

Theaccompanyingnotesformpartofthefinancialstatements.Thefinancialstatementsweresignedbythefollowing:

XuSongTuXiaopingHuShaode_________________________________________________________________________

LegalRepresentativeChiefFinancialOfficerHeadofAccountingDepartment

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AT31DECEMBER2023

BalanceSheetoftheCompany

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes31/12/202331/12/2022
CurrentAssets:
Cashandbankbalances3,281,038,218.843,333,936,587.44
Held-for-tradingfinancialassets1,500,517,808.221,502,601,369.86
Prepayments10,075,055.61-
Otherreceivables(XX)11,742,461,670.322,749,637,755.23
Including:Interestreceivable(XX)1--
Dividendsreceivable(XX)1167,092,526.14147,896,763.88
Othercurrentassets10,882,675.967,774,206.30
Totalcurrentassets6,544,975,428.957,593,949,918.83
Non-currentAssets:
Long-termreceivables9,391,615.509,240,200.34
Long-termequityinvestments(XX)255,168,618,338.7953,433,613,471.49
Investmentsinotherequityinstruments148,088,364.25144,700,378.28
Othernon-currentfinancialassets-950,321,309.06
Fixedassets27,343,639.2828,826,135.19
Including:Fixedassets-cost32,478,382.0431,811,887.38
Accumulateddepreciation5,134,742.762,985,752.19
Provisionforimpairmentoffixedassets--
Constructioninprogress607,774.3415,435,512.32
Intangibleassets54,876,218.7750,303,126.12
Developmentexpenditure38,923,289.236,219,670.14
Long-termprepaidexpenses665,319.42873,700.49
Deferredtaxassets928,465.21928,465.21
Totalnon-currentassets55,449,443,024.7954,640,461,968.64
TOTALASSETS61,994,418,453.7462,234,411,887.47

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AT31DECEMBER2023

BalanceSheetoftheCompany-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes31/12/202331/12/2022
CurrentLiabilities:
Receiptsinadvance5,358,074.44-
Employeebenefitspayable45,188,572.9638,763,907.88
Including:Payrollpayable45,032,983.1838,672,237.18
Welfarepayable--
Taxespayable1,046,270.661,251,923.17
Otherpayables376,323,201.93373,569,651.65
Including:Interestpayable--
Dividendspayable34,577,578.1234,577,578.12
Non-currentliabilitiesduewithinoneyear5,119,243,623.452,146,233,151.54
Othercurrentliabilities2,007,190,136.983,017,713,424.64
Totalcurrentliabilities7,554,349,880.425,577,532,058.88
Non-currentLiabilities:
Long-termborrowings7,979,000,000.004,988,000,000.00
Bondspayable3,000,000,000.008,000,000,000.00
Deferredtaxliabilities41,948,362.1341,622,256.05
Totalnon-currentliabilities11,020,948,362.1313,029,622,256.05
TOTALLIABILITIES18,575,298,242.5518,607,154,314.93
SHAREHOLDERS'EQUITY
Sharecapital2,499,074,661.002,499,074,661.00
Including:Statecapital--
State-ownedcorporatecapital2,264,090,797.002,283,118,870.00
Collectivecapital--
Privatecapital218,857,094.00195,001,566.00
Foreigncapital16,126,770.0020,954,225.00
Capitalreserve37,704,543,586.1137,749,723,642.07
Othercomprehensiveincome120,520,832.8399,525,686.03
Surplusreserve1,095,980,563.681,001,917,449.15
Unappropriatedprofit1,999,000,567.572,277,016,134.29
TOTALSHAREHOLDERS'EQUITY43,419,120,211.1943,627,257,572.54
TOTALLIABILITIESANDSHAREHOLDERS'EQUITY61,994,418,453.7462,234,411,887.47

Theaccompanyingnotesformpartofthefinancialstatements.

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FORTHEYEARENDED31DECEMBER2023

ConsolidatedIncomeStatement

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemNotes20232022(Restated)
I.Totaloperatingincome(VIII)4815,750,475,780.2216,230,489,127.55
Less:Operatingcosts(VIII)489,318,186,707.759,650,461,712.94
Taxesandsurcharges(VIII)49312,998,026.19282,249,473.46
Administrativeexpenses(VIII)501,776,641,155.381,765,094,736.51
Researchanddevelopmentexpenses(VIII)51223,739,072.07287,706,178.70
Financialexpenses(VIII)521,839,113,328.142,258,713,672.42
Including:Interestexpenses2,238,152,796.662,225,162,805.79
Interestincome497,593,921.36469,834,098.05
Netexchangeloss85,519,920.28477,004,284.27
Add:Otherincome(VIII)53224,389,260.77241,648,070.42
Investmentincome(VIII)546,348,676,940.807,377,655,506.33
Including:Incomefrominvestmentsinassociatesandjointventures(VIII)545,979,007,585.967,185,182,148.75
Gains(Losses)fromchangesinfairvalue(Lossesaremarkedwith"-")(VIII)5573,352,800.52-129,033,650.11
Gains(Losses)fromimpairmentofcredit(Lossesaremarkedwith"-")(VIII)5637,284,041.18-223,473,576.55
Lossesfromimpairmentofassets(Lossesaremarkedwith"-")(VIII)57-191,297,311.28-22,159,020.20
Gainsfromdisposalofassets(VIII)5836,759,532.6155,130,095.52
II.Operatingprofit8,808,962,755.299,286,030,778.93
Add:Non-operatingincome(VIII)5987,302,024.12279,274,452.77
Including:Governmentgrants-1,640,553.77
Less:Non-operatingexpenses(VIII)6097,072,840.72220,442,254.68
III.Grossprofit8,799,191,938.699,344,862,977.02
Less:Incometaxexpenses(VIII)631,303,579,852.931,112,959,676.75
IV.Netprofit7,495,612,085.768,231,903,300.27
(I)Categorizedbycontinuityofoperation
1.Netprofitfromcontinuingoperation7,495,612,085.768,231,903,300.27
2.Netprofitfromdiscontinuedoperation--
(II)Categorizedbyattributionofownership
1.NetprofitattributabletoshareholdersoftheCompany3,571,800,762.163,338,693,816.70
2.Profitorlossattributabletominorityshareholders3,923,811,323.604,893,209,483.57
V.Othercomprehensiveincome,netoftax(VIII)66209,856,768.771,628,631,938.02
(I)OthercomprehensiveincomeattributabletoshareholdersoftheCompany,netoftax-214,072,974.49208,085,368.23
1.Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss-73,874,071.89-22,706,023.29
(1)Changesfromremeasurementofthedefinedbenefitplan7,480,103.34-12,793,128.73
(2)Othercomprehensiveincomethatcannotbereclassifiedtoprofitorlossundertheequitymethod-83,841,725.07-11,550,762.02
(3)Changesinfairvalueofinvestmentsinotherequityinstruments2,487,549.841,637,867.46
2.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss-140,198,902.60230,791,391.52
(1)Othercomprehensiveincomethatcanbereclassifiedtoprofitorlossundertheequitymethod-366,028,318.84-110,193,707.53
(2)Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies225,829,416.24340,985,099.05
(II)Othercomprehensiveincomeattributabletominorityinterests,netoftax423,929,743.261,420,546,569.79
VI.Totalcomprehensiveincomeattributableto:7,705,468,854.539,860,535,238.29
(I)ShareholdersoftheCompany3,357,727,787.673,546,779,184.93
(II)Minorityshareholders4,347,741,066.866,313,756,053.36
VII.Earningspershare
(I)Basicearningspershare(Yuan/share)1.431.61
(II)Dilutedearningspershare(Yuan/share)1.431.61

Theaccompanyingnotesformpartofthefinancialstatements.

-12-

FORTHEYEARENDED31DECEMBER2023

IncomeStatementoftheCompany

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes20232022
I.Operatingincome(XX)317,326,885.293,669,891.36
Less:Operatingcosts(XX)33,686,411.842,276,202.60
Taxesandsurcharges2,161,621.421,126,365.82
Administrativeexpenses167,273,393.24154,023,617.71
Researchanddevelopmentexpenses14,046,526.9815,151,413.80
Financialexpenses397,006,521.97361,633,510.16
Including:Interestexpenses482,413,617.32491,933,634.55
Interestincome89,862,634.06144,120,475.54
Netexchangeloss2,296,890.143,785,346.40
Add:Otherincome206,131.06499,438.35
Investmentincome(XX)41,597,599,935.271,053,614,451.09
Including:Incomefrominvestmentsinassociatesandjointventures(XX)41,111,522,805.93384,257,363.02
Lossesfromchangesinfairvalue(Lossesaremarkedwith"-")-48,217,517.53-125,383,212.19
Lossesfromimpairmentofassets(Lossesaremarkedwith"-")-43,605,014.00-
Gainsfromdisposalofassets-237,727.99
II.Operatingprofit939,135,944.64398,427,186.51
Add:Non-operatingincome18,698.11545,089.04
Less:Non-operatingexpenses104,998.0418.84
III.Grossprofit939,049,644.71398,972,256.71
Less:Incometaxexpenses-1,581,500.55-8,376,614.77
IV.Netprofit940,631,145.26407,348,871.48
V.Othercomprehensiveincome,netoftax20,995,146.801,625,433.48
(I)Othercomprehensiveincomethatcannotbereclassifiedtoprofitorloss3,661,309.411,391,486.75
1.Changesfromremeasurementofthedefinedbenefitplan--
2.Othercomprehensiveincomethatcannotbereclassifiedtoprofitorlossundertheequitymethod1,120,319.9327,649.59
3.Changesinfairvalueofinvestmentsinotherequityinstruments2,540,989.481,363,837.16
(II)Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss17,333,837.39233,946.73
1.Othercomprehensiveincomethatcanbereclassifiedtoprofitorlossundertheequitymethod17,333,837.39233,946.73
2.Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies--
VI.Totalcomprehensiveincome961,626,292.06408,974,304.96

Theaccompanyingnotesformpartofthefinancialstatements.

-13-

FORTHEYEARENDED31DECEMBER2023

ConsolidatedCashFlowStatement

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes20232022
I.CashFlowsfromOperatingActivities:
Cashreceiptsfromsalesofgoodsandrenderingofservices16,019,658,434.9016,547,850,742.82
Receiptsoftaxrefunds53,272,648.95239,426,543.45
Othercashreceiptsrelatingtooperatingactivities(VIII)67(1)927,564,019.091,141,794,925.33
Sub-totalofcashinflows17,000,495,102.9417,929,072,211.60
Cashpaymentsforgoodspurchasedandservicesreceived4,550,256,851.254,790,513,865.61
Cashpaymentstoandonbehalfofemployees3,598,624,870.643,612,535,626.78
Paymentsofvarioustypesoftaxes1,418,779,686.671,579,320,175.46
Othercashpaymentsrelatingtooperatingactivities(VIII)67(1)853,227,059.211,026,325,153.40
Sub-totalofcashoutflows10,420,888,467.7711,008,694,821.25
NetCashFlowsfromOperatingActivities(VIII)68(1)6,579,606,635.176,920,377,390.35
II.CashFlowsfromInvestingActivities:
Cashreceiptsfromdisposalandrecoveryofinvestments28,430,740,038.1440,894,899,081.53
Cashreceiptsfrominvestmentsincome2,329,944,728.792,429,981,136.20
Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets144,845,803.8613,812,483.21
Netcashreceiptsfromdisposalsofsubsidiariesandotherbusinessunits(VIII)68(3)1,683,385,533.43-
Othercashreceiptsrelatingtoinvestingactivities(VIII)67(2)3,164,955,303.27295,064,509.34
Sub-totalofcashinflows35,753,871,407.4943,633,757,210.28
Cashpaymentstoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets1,929,374,936.212,133,837,244.47
Cashpaymentstoacquireinvestments29,974,648,554.8754,509,066,114.35
Othercashpaymentsrelatingtoinvestingactivities(VIII)67(2)82,663,303.33954,802,482.30
Sub-totalofcashoutflows31,986,686,794.4157,597,705,841.12
NetCashFlowsfromInvestingActivities3,767,184,613.08-13,963,948,630.84
III.CashFlowsfromFinancingActivities:
Cashreceiptsfromcapitalcontributions217,520,934.6110,642,126,434.50
Including:Cashreceiptsfromcapitalcontributionsfromminorityshareholdersofsubsidiaries217,520,934.61-
Cashreceiptsfromborrowings29,416,872,247.5529,859,438,534.05
Cashreceiptsfromissueofbonds6,000,000,000.0019,248,308,650.00
Othercashreceiptsrelatingtofinancingactivities(VIII)67(3)334,754,229.6356,303,169.80
Sub-totalofcashinflows35,969,147,411.7959,806,176,788.35
Cashrepaymentsofborrowings31,919,051,211.8746,432,911,425.29
Cashpaymentsfordistributionofdividendsorprofitsorsettlementofinterestexpenses5,167,695,546.014,732,910,153.42
Including:Paymentsfordistributionofdividendsorprofitstominorityshareholdersofsubsidiaries1,955,677,172.681,900,086,012.38
Othercashpaymentsrelatingtofinancingactivities(VIII)67(3)6,867,093,830.321,124,116,740.35
Sub-totalofcashoutflows43,953,840,588.2052,289,938,319.06
NetCashFlowsfromFinancingActivities-7,984,693,176.417,516,238,469.29
IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents89,206,087.64367,287,004.46
V.NetIncreaseinCashandCashEquivalents2,451,304,159.48839,954,233.26
Add:Openingbalanceofcashandcashequivalents(VIII)68(2)13,567,309,471.6212,727,355,238.36
VI.ClosingBalanceofCashandCashEquivalents(VIII)68(2)16,018,613,631.1013,567,309,471.62

Theaccompanyingnotesformpartofthefinancialstatements.

-14-

FORTHEYEARENDED31DECEMBER2023

CashFlowStatementoftheCompany

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes20232022
I.CashFlowsfromOperatingActivities:
Othercashreceiptsrelatingtooperatingactivities205,894,785.22108,295,282.75
Sub-totalofcashinflows205,894,785.22108,295,282.75
Cashpaymentsforgoodspurchasedandservicesreceived142,500.0086,280.54
Cashpaymentstoandonbehalfofemployees111,864,640.42102,305,409.21
Paymentsofvarioustypesoftaxes2,203,522.03162,077,694.07
Othercashpaymentsrelatingtooperatingactivities197,101,786.3364,738,420.24
Sub-totalofcashoutflows311,312,448.78329,207,804.06
NetCashFlowsfromOperatingActivities-105,417,663.56-220,912,521.31
II.CashFlowsfromInvestingActivities:
Cashreceiptsfromdisposalandrecoveryofinvestments11,200,000,000.0033,317,450,238.74
Cashreceiptsfrominvestmentincome934,979,575.11770,719,728.64
Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets-1,002,668.00
Othercashreceiptsrelatingtoinvestingactivities1,948,842,841.7950,285,632.68
Sub-totalofcashinflows14,083,822,416.9034,139,458,268.06
Cashpaymentstoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets23,594,300.6942,642,426.69
Cashpaymentstoacquireinvestments11,589,128,994.6945,942,721,212.13
Othercashpaymentsrelatingtoinvestingactivities890,011,664.401,523,809,248.36
Sub-totalofcashoutflows12,502,734,959.7847,509,172,887.18
NetCashFlowsfromInvestingActivities1,581,087,457.12-13,369,714,619.12
III.CashFlowsfromFinancingActivities:
Cashreceiptsfromcapitalcontributions-10,642,126,434.50
Cashreceiptsfromborrowings6,250,000,000.009,171,668,674.85
Cashreceiptsfromissueofbonds6,000,000,000.0016,000,000,000.00
Othercashreceiptsrelatingtofinancingactivities6,728,017.136,303,169.80
Sub-totalofcashinflows12,256,728,017.1335,820,098,279.15
Cashrepaymentsofborrowings12,125,000,000.0020,529,408,504.85
Cashpaymentsfordistributionofdividendsorprofitsorsettlementofinterestexpenses1,650,693,345.101,257,422,374.13
Othercashpaymentsrelatingtofinancingactivities9,832,313.9223,179,821.90
Sub-totalofcashoutflows13,785,525,659.0221,810,010,700.88
NetCashFlowsfromFinancingActivities-1,528,797,641.8914,010,087,578.27
IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents176,979.73714,582.29
V.Net(Decrease)IncreaseinCashandCashEquivalents(Lossesaremarkedwith"-")-52,950,868.60420,175,020.13
Add:Openingbalanceofcashandcashequivalents3,333,936,587.442,913,761,567.31
VI.ClosingBalanceofCashandCashEquivalents3,280,985,718.843,333,936,587.44

Theaccompanyingnotesformpartofthefinancialstatements.

-15-

FORTHEYEARENDED31DECEMBER2023

ConsolidatedStatementofChangesinShareholders'Equity

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item2023
EquityattributabletoshareholdersoftheCompanyMinorityinterestsTotalshareholders'equity
SharecapitalCapitalreserveOthercomprehensiveincomeIncluding:ForeigncurrencyconversiondifferenceSpecialreserveSurplusreserveUnappropriatedprofit
I.Closingbalanceoftheprecedingyear2,499,074,661.0034,751,640,835.25-691,536,248.44-681,788,363.0726,358,259.971,001,917,449.1516,679,688,347.0973,994,641,893.21128,261,785,197.23
Add:Changesinaccountingpolicies--1,982,628.581,982,628.58--22,299,954.0535,540,449.4559,823,032.08
Correctionsofpriorperioderrors---------
Businesscombinationinvolvingenterprisesundercommoncontrol---------
Others---------
II.Openingbalanceoftheyear2,499,074,661.0034,751,640,835.25-689,553,619.86-679,805,734.4926,358,259.971,001,917,449.1516,701,988,301.1474,030,182,342.66128,321,608,229.31
III.Changesfortheyear-2,325,205,967.81-214,072,974.49225,829,416.247,645,734.4494,063,114.532,343,325,218.61-7,307,840,861.40-2,751,673,800.50
(I)Totalcomprehensiveincome---214,072,974.49225,829,416.24--3,571,800,762.164,347,741,066.867,705,468,854.53
(II)Owners'contributionsandreductionincapital-2,325,205,967.81---317,684.31--1,883,909.97-9,190,432,492.89-6,867,428,119.36
1.Ordinarysharescontributedbyowners-------685,424,826.14685,424,826.14
2.Capitalcontributionfromholdersofotherequityinstruments--------4,222,148,460.84-4,222,148,460.84
3.Share-basedpaymentrecognizedinshareholders'equity-1,053,188.36-----523,302.321,576,490.68
4.Others-2,324,152,779.45---317,684.31--1,883,909.97-5,654,232,160.51-3,332,280,975.34
(III)Profitdistribution-----94,063,114.53-1,226,591,633.58-2,477,802,768.49-3,610,331,287.54
1.Transfertosurplusreserve-----94,063,114.53-94,063,114.53--
2.Distributiontoshareholders-------1,124,583,597.45-2,256,143,657.02-3,380,727,254.47
3.Others-------7,944,921.60-221,659,111.47-229,604,033.07
(IV)Transferswithinshareholders'equity---------
1.Capitalizationofcapitalreserve---------
2.Capitalizationofsurplusreserve---------
3.Lossoffsetbysurplusreserve---------
4.Retainedearningscarriedforwardfromothercomprehensiveincome---------
5.Others---------
(V)Specialreserve----7,963,418.75--12,653,333.1220,616,751.87
1.Transfertospecialreserveintheyear----61,589,514.21--66,309,179.08127,898,693.29
2.Amountutilizedintheyear-----53,626,095.46---53,655,845.96-107,281,941.42
(VI)Others---------
IV.Closingbalanceoftheyear2,499,074,661.0037,076,846,803.06-903,626,594.35-453,976,318.2534,003,994.411,095,980,563.6819,045,313,519.7566,722,341,481.26125,569,934,428.81

-16-

FORTHEYEARENDED31DECEMBER2023

ConsolidatedStatementofChangesinShareholders'Equity-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item2022(Restated)
EquityattributabletoshareholdersoftheCompanyMinorityinterestsTotalshareholders'equity
SharecapitalCapitalreserveOthercomprehensiveincomeIncluding:ForeigncurrencyconversiondifferenceSpecialreserveSurplusreserveUnappropriatedprofit
I.Closingbalanceoftheprecedingyear1,922,365,124.0023,592,702,758.70-890,125,318.18-1,020,790,833.549,184,429.12961,182,562.0014,205,879,106.4971,234,238,229.35111,035,426,891.48
Add:Changesinaccountingpolicies------21,052,360.1733,445,604.2954,497,964.46
Correctionsofpriorperioderrors---------
Businesscombinationinvolvingenterprisesundercommoncontrol---------
Others---------
II.Openingbalanceoftheyear1,922,365,124.0023,592,702,758.70-890,125,318.18-1,020,790,833.549,184,429.12961,182,562.0014,226,931,466.6671,267,683,833.64111,089,924,855.94
III.Changesfortheyear576,709,537.0011,158,938,076.55200,571,698.32340,985,099.0517,173,830.8540,734,887.152,475,056,834.482,762,498,509.0217,231,683,373.37
(I)Totalcomprehensiveincome--208,085,368.23340,985,099.05--3,338,693,816.706,313,756,053.369,860,535,238.29
(II)Owners'contributionsandreductionincapital576,709,537.0011,158,938,076.55------683,588,937.2611,052,058,676.29
1.Ordinarysharescontributedbyowners576,709,537.0010,055,823,793.40-----971,135,730.3111,603,669,060.71
2.Capitalcontributionfromholdersofotherequityinstruments---------
3.Share-basedpaymentrecognizedinshareholders'equity--4,365,536.60------3,266,354.51-7,631,891.11
4.Others-1,107,479,819.75------1,651,458,313.06-543,978,493.31
(III)Profitdistribution-----40,734,887.15-871,150,652.13-2,897,141,819.77-3,727,557,584.75
1.Transfertosurplusreserve-----40,734,887.15-40,734,887.15--
2.Transfertogeneralriskreserve---------
3.Distributiontoshareholders-------826,617,003.32-2,698,588,539.77-3,525,205,543.09
4.Others-------3,798,761.66-198,553,280.00-202,352,041.66
(IV)Transferswithinshareholders'equity---7,513,669.91---7,513,669.91--
1.Capitalizationofcapitalreserve---------
2.Capitalizationofsurplusreserve---------
3.Lossoffsetbysurplusreserve---------
4.Retainedearningscarriedforwardfromothercomprehensiveincome---7,513,669.91---7,513,669.91--
5.Others---------
(V)Specialreserve----17,173,830.85--29,473,212.6946,647,043.54
1.Transfertospecialreserveintheyear----62,696,039.72--86,478,912.67149,174,952.39
2.Amountutilizedintheyear-----45,522,208.87---57,005,699.98-102,527,908.85
(VI)Others---------
IV.Closingbalanceoftheyear2,499,074,661.0034,751,640,835.25-689,553,619.86-679,805,734.4926,358,259.971,001,917,449.1516,701,988,301.1474,030,182,342.66128,321,608,229.31

Theaccompanyingnotesformpartofthefinancialstatements.

-17-

FORTHEYEARENDED31DECEMBER2023

TheCompany'sStatementofChangesinShareholders'Equity

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item2023
SharecapitalCapitalreserveOthercomprehensiveincomeSpecialreserveSurplusreserveUnappropriatedprofitTotalshareholders'equity
I.Closingbalanceoftheprecedingyear2,499,074,661.0037,749,723,642.0799,525,686.03-1,001,917,449.152,277,016,134.2943,627,257,572.54
Add:Changesinaccountingpolicies-------
Correctionsofpriorperioderrors-------
Others-------
II.Openingbalanceoftheyear2,499,074,661.0037,749,723,642.0799,525,686.03-1,001,917,449.152,277,016,134.2943,627,257,572.54
III.Changesfortheyear--45,180,055.9620,995,146.80-94,063,114.53-278,015,566.72-208,137,361.35
(I)Totalcomprehensiveincome--20,995,146.80--940,631,145.26961,626,292.06
(II)Owners'contributionsandreductionincapital--45,180,055.96-----45,180,055.96
1.Ordinarysharescontributedbyowners-------
2.Share-basedpaymentrecognizedinshareholders'equity-------
3.Share-basedpaymentrecognizedinowners'equity-1,890,784.31----1,890,784.31
4.Others--47,070,840.27-----47,070,840.27
(III)Profitdistribution----94,063,114.53-1,218,646,711.98-1,124,583,597.45
1.Transfertosurplusreserve----94,063,114.53-94,063,114.53-
2Distributiontoshareholders------1,124,583,597.45-1,124,583,597.45
3.Others-------
(IV)Transferswithinshareholders'equity-------
1.Capitalizationofcapitalreserve-------
2.Capitalizationofsurplusreserve-------
3.Lossoffsetbysurplusreserve-------
4.Retainedearningscarriedforwardfromothercomprehensiveincome-------
5.Others-------
(V)Specialreserve-------
1.Transfertospecialreserveintheyear-------
2.Amountutilizedintheyear-------
(VI)Others-------
IV.Closingbalanceoftheyear2,499,074,661.0037,704,543,586.11120,520,832.83-1,095,980,563.681,999,000,567.5743,419,120,211.19

-18-

FORTHEYEARENDED31DECEMBER2023

TheCompany'sStatementofChangesinShareholders'Equity-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item2022
SharecapitalCapitalreserveOthercomprehensiveincomeSpecialreserveSurplusreserveUnappropriatedprofitTotalshareholders'equity
I.Closingbalanceoftheprecedingyear1,922,365,124.0027,594,079,596.13105,412,294.52-961,182,562.002,729,507,111.3133,312,546,687.96
Add:Changesinaccountingpolicies-------
Correctionsofpriorperioderrors-------
Others-------
II.Openingbalanceoftheyear1,922,365,124.0027,594,079,596.13105,412,294.52-961,182,562.002,729,507,111.3133,312,546,687.96
III.Changesfortheyear576,709,537.0010,155,644,045.94-5,886,608.49-40,734,887.15-452,490,977.0210,314,710,884.58
(I)Totalcomprehensiveincome--1,625,433.48--407,348,871.48408,974,304.96
(II)Owners'contributionsandreductionincapital576,709,537.0010,155,644,045.94----10,732,353,582.94
1.Ordinarysharescontributedbyowners576,709,537.0010,055,823,793.40----10,632,533,330.40
2.Share-basedpaymentrecognizedinshareholders'equity--6,388,558.75-----6,388,558.75
3.Others-106,208,811.29----106,208,811.29
(III)Profitdistribution----40,734,887.15-867,351,890.47-826,617,003.32
1.Transfertosurplusreserve----40,734,887.15-40,734,887.15-
2.Transfertogeneralriskreserve-------
3.Distributiontoshareholders------826,617,003.32-826,617,003.32
4.Others-------
(IV)Transferswithinshareholders'equity---7,512,041.97--7,512,041.97-
1.Capitalizationofcapitalreserve-------
2.Capitalizationofsurplusreserve-------
3.Lossoffsetbysurplusreserve-------
4.Retainedearningscarriedforwardfromothercomprehensiveincome---7,512,041.97--7,512,041.97-
5.Others-------
(V)Specialreserve-------
1.Transfertospecialreserveintheyear-------
2.Amountutilizedintheyear-------
(VI)Others-------
IV.Closingbalanceoftheyear2,499,074,661.0037,749,723,642.0799,525,686.03-1,001,917,449.152,277,016,134.2943,627,257,572.54

Theaccompanyingnotesformpartofthefinancialstatements.

-19-

(I)GENERALINFORMATIONOFTHECOMPANY

ChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoasthe"Company")isastocklimitedcompanyincorporatedinShenzhen,GuangdongProvince,on16January1993.TheheadquartersoftheCompanyislocatedinShenzhen,GuangdongProvince.TheCompanyanditssubsidiaries(collectivelythe"Group")areactuallyengagedintheprincipaloperatingactivitiesofportservice,bondedlogisticsserviceandotherbusinessessuchaspropertydevelopmentandinvestment.TheCompany'sandconsolidatedfinancialstatementswereapprovedbytheBoardofDirectorson29March2024.(II)BASISOFPREPARATIONOFFINANCIALSTATEMENTS

BasisofpreparationoffinancialstatementsTheGrouphasadoptedtheAccountingStandardsforBusinessEnterprises("ASBE")issuedbytheMinistryofFinance("MoF").Inaddition,theGrouphasdisclosedrelevantfinancialinformationinaccordancewithInformationDisclosureandPresentationRulesforCompaniesOfferingSecuritiestothePublicNo.15-GeneralProvisionsonFinancialReporting(Revisedin2023).GoingconcernAsat31December2023,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsbyRMB5,612,418,164.44.Asat31December2023,theGrouphadavailableandunusedlineofcreditandbondsamountingtoRMB69,439,268,355.68,whichisgreaterthanthebalanceofthenetcurrentliabilities.TheGroupcanobtainfinancialsupportfromtheavailablelineofcreditandbondswhenneeded.Therefore,thefinancialstatementshavebeenpreparedonagoingconcernbasis.(III)STATEMENTOFCOMPLIANCEWITHTHEASBE

ThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewithASBE,andpresenttrulyandcompletely,theCompany'sandconsolidatedfinancialpositionasat31December2023,andtheCompany'sandconsolidatedresultsofoperationsandcashflowsfortheyearthenended.(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES

1.AccountingyearTheGrouphasadoptedthecalendaryearasitsaccountingyear,e.g.,from1Januaryto31December.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

2.OperatingcycleAnoperatingcyclereferstotheperiodsincewhenanenterprisepurchasesassetsforprocessingpurposetilltherealizationofthoseassetsincashorcashequivalents.TheGroupisprincipallyengagedintherenderingofportservice,bondedlogisticsserviceandotherbusinessessuchaspropertydevelopmentandinvestmentwithoneyearbeinganoperatingcycle.

3.FunctionalcurrencyRenminbi("RMB")isthecurrencyoftheprimaryeconomicenvironmentinwhichtheCompanyanditsdomesticsubsidiariesoperate.Therefore,theCompanyanditsdomesticsubsidiarieschooseRMBastheirfunctionalcurrency.TheCompany'soverseassubsidiarieschoosetheirfunctionalcurrenciesonthebasisoftheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadoptsRMBtoprepareitsfinancialstatements.

4.Methodfordeterminationofmaterialitycriteriaandbasisforselection

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemMaterialitycriteria
Significantprepaymentsagedmorethan1yearTheamountexceedsRMB10millionindividually
Significantdividendsreceivableagedmorethan1yearTheamountexceedsRMB50millionindividually
SignificantotherreceivablesforwhichbaddebtprovisionisassessedonanindividualbasisTheamountexceedsRMB10millionindividually
ReversalorrecoveryofsignificantbaddebtprovisionTheamountexceedsRMB10millionindividually
Impairmenttestingofsignificantlong-termequityinvestmentsThecarryingamountofanindividuallong-termequityinvestment≥2%oftheamountoftotalassets
SignificantconstructioninprogressTheyear-endcarryingamountofanindividualconstructioninprogressrangestopten
ImpairmenttestingofsignificantconstructioninprogressThecarryingamountofanindividualconstructioninprogress≥20%oftheamountoftotalassets
Significantaccountspayableagedmorethan1yearTheamountexceedsRMB10millionindividually
Significantreceiptsinadvanceagedmorethan1yearTheamountexceedsRMB10millionindividually
Significantcontractliabilitiesagedmorethan1yearTheamountexceedsRMB10millionindividually
Significantdividendspayableagedmorethan1yearTheamountexceedsRMB50millionindividually
Significantotherpayablesagedmorethan1yearTheamountexceedsRMB10millionindividually
CashflowsfromsignificantinvestingactivitiesTheamountexceeds0.5%oftheamountoftotalassetsindividually
Significantnon-whollyownedsubsidiariesTheamountoftotalrevenueortotalassetsofsubsidiariesexceeds15%oftheamountoftotalconsolidatedrevenueortotalconsolidatedassets
SignificantjointventuresorassociatesJointventuresorassociatesinwhichthecarryingamountofalong-termequityinvestmentaccountsfor≥10%oftheamountoftotalconsolidatedassetsorinwhichtheinvestmentincomerecognizedundertheequitymethodaccountsfor≥10%oftheamountoftotalconsolidatedprofit
SignificantcommitmentsTheamountexceeds0.3%oftheamountoftotalassetsindividually,includingreorganization,mergersandacquisitions,andbuildingofconstructioninprogress,etc.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

5.BasisofaccountingandprincipleofmeasurementTheGrouphasadoptedtheaccrualbasisofaccounting.Exceptforfinancialinstrumentswhicharemeasuredatfairvalue,theGroupadoptsthehistoricalcostastheprincipleofmeasurementofthefinancialstatements.Uponbeingrestructuredintoastockcompany,thefixedassetsandintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.Wherethehistoricalcostisadoptedasthemeasurementbasis,assetsarerecordedattheamountofcashorcashequivalentspaidorthefairvalueoftheconsiderationgiventoacquirethematthetimeoftheiracquisition.Liabilitiesarerecordedattheamountofproceedsorassetsreceivedorthecontractualamountsforassumingthepresentobligation,or,attheamountsofcashorcashequivalentsexpectedtobepaidtosettletheliabilitiesinthenormalcourseofbusiness.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate,regardlessofwhetherthatpriceisdirectlyobservableorestimatedusingvaluationtechnique.Fairvaluemeasurementand/ordisclosureinthefinancialstatementsaredeterminedaccordingtotheabovebasis.Inthemeasurementofnon-financialassetsatfairvalue,marketparticipants'abilitytobestutilizesuchassetstogeneratemosteconomicbenefits,ortheabilitytosellsuchassetstoothermarketparticipantswhoareabletobestutilizetheassetstogenerateeconomicbenefitsistakenintoaccount.Forfinancialassetsofwhichtransactionpricesarethefairvalueoninitialrecognition,andofwhichvaluationtechniqueinvolvingunobservableinputisusedinsubsequentmeasurement,thevaluationtechniqueinthecourseofvaluationisadjustedtoenabletheresultofinitialrecognitionbasedonthevaluationtechniqueequaltothetransactionprice.FairvaluemeasurementsarecategorizedintoLevel1,2or3basedonthedegreetowhichtheinputstothefairvaluemeasurementsareobservableandthesignificanceoftheinputstothefairvaluemeasurementinitsentirety,whicharedescribedasfollows:

?Level1inputsareunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthat

theentitycanaccessatthemeasurementdate;?Level2inputsareinputs,otherthanquotedpricesincludedwithinLevel1,thatareobservablefortheassetorliability,eitherdirectlyorindirectly;and?Level3inputsareunobservableinputsfortheassetorliability.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

6.BusinesscombinationsBusinesscombinationsareclassifiedintobusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsnotinvolvingenterprisesundercommoncontrol.

6.1BusinesscombinationsinvolvingenterprisesundercommoncontrolAbusinesscombinationinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Assetsandliabilitiesobtainedshallbemeasuredattheirrespectivecarryingamountsasrecordedbythecombiningentitiesatthedateofthecombination.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombinationisadjustedtothesharepremiumincapitalreserve.Ifthesharepremiumisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.Coststhataredirectlyattributabletothecombinationarechargedtoprofitorlossintheperiodinwhichtheyareincurred.

6.2BusinesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwillAbusinesscombinationnotinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbeforeandafterthecombination.Thecostofcombinationistheaggregateofthefairvalues,attheacquisitiondate,oftheassetsgiven,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquiree.Whereabusinesscombinationnotinvolvingenterprisesundercommoncontrolisachievedinstagesthatinvolvemultipletransactions,thecostofcombinationisthesumoftheconsiderationpaidattheacquisitiondateandthefairvalueattheacquisitiondateoftheacquirer'spreviouslyheldinterestintheacquiree.Theintermediaryexpenses(feesinrespectofauditing,legalservices,valuationandconsultancyservices,etc.)andotheradministrativeexpensesattributabletothebusinesscombinationarerecognizedinprofitorlossintheperiodswhentheyareincurred.Theacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesacquiredbytheacquirerinabusinesscombinationthatmeettherecognitioncriteriashallbemeasuredatfairvalueattheacquisitiondate.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

6.Businesscombinations-continued

6.2Businesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwill

-continuedWhenabusinesscombinationcontractprovidesfortheacquirer'srecoveryofconsiderationpreviouslypaidcontingentononeormultiplefutureevent(s),theGrouprecognizesthecontingentconsiderationprovidedinthecontractasanasset,aspartoftheconsiderationtransferredinthebusinesscombination,andincludesitinthecostofbusinesscombinationatthefairvalueattheacquisitiondate.Within12monthsaftertheacquisition,wherethecontingentconsiderationneedstobeadjustedasneworfurtherevidencesareobtainedinrespectofthecircumstancesexistedattheacquisitiondate,theadjustmentshallberecognizedandtheamountoriginallyrecognizedingoodwillornon-operatingincomeshallbeadjusted.AchangeinoradjustmenttothecontingentconsiderationunderothercircumstancesshallbeaccountedforinaccordancewithAccountingStandardsforBusinessEnterpriseNo.22-FinancialInstruments:RecognitionandMeasurementandAccountingStandardsforBusinessEnterprisesNo.13-Contingencies.Anychangeoradjustmentisincludedinprofitorlossforthecurrentperiod.Wherethecostofcombinationexceedstheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,thedifferenceistreatedasanassetandrecognizedasgoodwill,whichismeasuredatcostoninitialrecognition.Wherethecostofcombinationislessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerreassessesthemeasurementofthefairvaluesoftheacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesandmeasurementofthecostofcombination.Ifafterthatreassessment,thecostofcombinationisstilllessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerrecognizestheremainingdifferenceimmediatelyinprofitorlossforthecurrentperiod.Ifeitherthefairvaluesofidentifiableassets,liabilitiesandcontingentliabilitiesacquiredinacombinationorthecostofbusinesscombinationcanbedeterminedonlyprovisionallybytheendoftheperiodinwhichthebusinesscombinationwasaffected,theacquirerrecognizesandmeasuresthecombinationusingthoseprovisionalvalues.Anyadjustmentstothoseprovisionalvalueswithintwelvemonthsaftertheacquisitiondatearetreatedasiftheyhadbeenrecognizedandmeasuredontheacquisitiondate.Goodwillarisingfromabusinesscombinationismeasuredatcostlessaccumulatedimpairmentlosses,andispresentedseparatelyintheconsolidatedfinancialstatements.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

7.Consolidatedfinancialstatements

7.1DeterminationcriteriaofcontrolControlexistswhentheinvestorhaspowerovertheinvestee;isexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytouseitspowerovertheinvesteetoaffectitsreturns.TheGroupreassesseswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechangesintheaboveelementsofthedefinitionofcontrol.

7.2PreparationofconsolidatedfinancialstatementsThescopeofconsolidationintheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.ConsolidationofasubsidiarybeginswhentheGroupobtainscontroloverthesubsidiaryandceaseswhentheGrouplosescontrolofthesubsidiary.ForasubsidiaryalreadydisposedofbytheGroup,theoperatingresultsandcashflowsbeforethedateofdisposal(thedatewhencontrolislost)areincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement,asappropriate.Forsubsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesnotundercommoncontrol,theoperatingresultsandcashflowsfromtheacquisitiondate(thedatewhencontrolisobtained)areincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement,asappropriate.Nomatterwhenthebusinesscombinationoccursinthereportingperiod,subsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrolorthepartybeingabsorbedundermergerbyabsorptionareincludedintheGroup'sscopeofconsolidationasiftheyhadbeenincludedinthescopeofconsolidationfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingparty.Theiroperatingresultsandcashflowsfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingpartyareincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement,asappropriate.ThesignificantaccountingpoliciesandaccountingperiodsadoptedbythesubsidiariesaredeterminedbasedontheuniformaccountingpoliciesandaccountingperiodssetoutbytheCompany.WheretheaccountingpoliciesandaccountingperiodsadoptedbysubsidiariesareinconsistentwiththoseoftheCompany,appropriateadjustmentsaremadetothesubsidiaries'financialstatementsinaccordancewiththeaccountingpoliciesoftheCompany.Allsignificantintra-groupbalancesandtransactionsareeliminatedonconsolidation.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

7.Consolidatedfinancialstatements-continued

7.2Preparationofconsolidatedfinancialstatements-continuedTheportionofsubsidiaries'equitythatisnotattributabletotheCompanyistreatedasminorityinterestsandpresentedas"minorityinterests"intheconsolidatedbalancesheetunderthelineitemofshareholders'equity.Theportionofnetprofitsorlossesofsubsidiariesfortheperiodattributabletominorityinterestsispresentedas"minorityinterests"intheconsolidatedincomestatementunderthelineitemof"netprofit".Theportionofcomprehensiveincomeofsubsidiariesfortheperiodattributabletominorityinterestsispresentedas"totalcomprehensiveincomeattributabletominorityshareholders"intheconsolidatedincomestatementunderthelineitemof"totalcomprehensiveincome".Whentheamountoflossfortheperiodattributabletotheminorityshareholdersofasubsidiaryexceedstheminorityshareholders'portionoftheopeningbalanceofowners'equityofthesubsidiary,theexcessamountisstillallocatedagainstminorityinterests.Acquisitionofminorityinterestsordisposalofinterestsinasubsidiarythatdoesnotresultinthelossofcontroloverthesubsidiaryisaccountedforasequitytransactions.ThecarryingamountsoftheCompany'sinterestsandminorityinterestsareadjustedtoreflectthechangesintheirrelativeinterestsinthesubsidiary.Thedifferencebetweentheamountbywhichtheminorityinterestsareadjustedandthefairvalueoftheconsiderationpaidorreceivedisadjustedtocapitalreserve.Ifthecapitalreserveisnotsufficienttoabsorbthedifference,theexcessisadjustedagainstretainedearnings.Forthestepwiseacquisitionofequityinteresttillacquiringcontrolafterafewtransactionsandleadingtobusinesscombinationnotinvolvingenterprisesundercommoncontrol,itshallbedealtwithbasedonwhetheritbelongsto'packagedeal':ifitbelongsto'packagedeal',itwillbeaccountedforasatransactionstoacquirecontrol;ifitdoesnotbelongto'packagedeal',itwillbeaccountedforasatransactiontoacquirecontrolonacquisitiondate,andthefairvalueofacquiree'sharesheldbeforeacquisitiondatewillberevalued,andthedifferencebetweenfairvalueandcarryingamountwillberecognizedinprofitorlossofthecurrentperiod;ifacquiree'sharesheldbeforeacquisitiondateinvolvechangesinothercomprehensiveincomeandotherchangesinowners'equityunderequitymethod,itwillbetransferredtoincomeofacquisitiondate.WhentheGrouplosescontroloverasubsidiaryduetodisposalofequityinvestmentorotherreasons,anyretainedinterestisre-measuredatitsfairvalueatthedatewhencontrolislost.Thedifferencebetween(i)theaggregateoftheconsiderationreceivedondisposalandthefairvalueofanyretainedinterestand(ii)theshareoftheformersubsidiary'snetassetscumulativelycalculatedfromtheacquisitiondateaccordingtotheoriginalproportionofownershipinterestsisrecognizedasinvestmentincomeintheperiodinwhichcontrolislost,andthegoodwillisoffsetaccordingly.Othercomprehensiveincomeassociatedwithinvestmentintheformersubsidiaryisreclassifiedtoinvestmentincomeintheperiodinwhichcontrolislost.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

7.Consolidatedfinancialstatements-continued

7.2Preparationofconsolidatedfinancialstatements-continuedWhentheGrouplosescontrolofasubsidiaryintwoormorearrangements(transactions),termsandconditionsofthearrangements(transactions)andtheireconomiceffectsareconsidered.OneormoreofthefollowingindicatethattheGroupshallaccountforthemultiplearrangementsasa'packagedeal':(i)theyareenteredintoatthesametimeorincontemplationofeachother;(ii)theyformacompletetransactiondesignedtoachieveanoverallcommercialeffect;(iii)theoccurrenceofonetransactionisdependentontheoccurrenceofatleastoneothertransaction;(iv)onetransactionaloneisnoteconomicallyjustified,butitiseconomicallyjustifiedwhenconsideredtogetherwithothertransactions.Wherethetransactionsofdisposalofequityinvestmentsinasubsidiaryuntilthelossofcontrolareassessedasapackagedeal,thesetransactionsareaccountedforasonetransactionofdisposalofasubsidiarywithlossofcontrol.Beforelosingcontrol,thedifferenceofconsiderationreceivedondisposalandtheshareofnetassetsofthesubsidiarycontinuouslycalculatedfromacquisitiondateisrecognizedasothercomprehensiveincome.Whenlosingcontrol,thecumulatedothercomprehensiveincomeistransferredtoprofitorlossoftheperiodoflosingcontrol.Ifthetransactionsofdisposalofequityinvestmentsinasubsidiaryarenotassessedasapackagedeal,thesetransactionsareaccountedforasunrelatedtransactions.

8.JointarrangementsTherearetwotypesofjointarrangements-jointoperationsandjointventures.Theclassificationisbasedontherightsandobligationsofthepartiesunderthejointventurearrangement,takingintoaccountfactorssuchasthestructure,legalformandcontractualtermsofthearrangement.Ajointoperationisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstotheassets,andobligationsfortheliabilities,relatingtothearrangement.Ajointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthearrangement.TheGroupaccountsforinvestmentsinjointventuresusingequitymethod.RefertoNote(IV),

15.3.2"Long-termequityinvestmentsaccountedforusingtheequitymethod"fordetails.Whenagroupentityundertakesitsactivitiesunderjointoperations,theGroupasajointoperatorrecognizesinrelationtoitsinterestinajointoperation:-itsassets,includingitsshareofanyassetsheldjointly;itsliabilities,includingitsshareofanyliabilitiesincurredjointly;itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;itsshareoftherevenuefromthesaleoftheoutputbythejointoperation;anditsexpenses,includingitsshareofanyexpensesincurredjointly.TheGroupaccountsfortheassets,liabilities,revenuesandexpensesrelatingtoitsinterestinajointoperationinaccordancewiththeaccountingstandardsapplicabletotheparticularassets,liabilities,revenuesandexpenses.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

9.CashandcashequivalentsCashcomprisescashonhandanddepositsthatcanbereadilywithdrawnondemand.CashequivalentsaretheGroup'sshort-term(generallyduewithin3monthssincetheacquisitiondate),highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.

10.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancial

statementsdenominatedinforeigncurrencies

10.1TransactionsdenominatedinforeigncurrenciesAforeigncurrencytransactionisrecorded,oninitialrecognition,byapplyingthespotexchangerateonthedateofthetransaction.Atthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedintofunctionalcurrencyusingthespotexchangeratesatthebalancesheetdate.Exchangedifferencesarisingfromthedifferencesbetweenthespotexchangeratesprevailingatthebalancesheetdateandthoseoninitialrecognitionoratthepreviousbalancesheetdatearerecognizedinprofitorlossfortheperiod,exceptthat(1)exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencythatqualifyforcapitalizationarecapitalizedaspartofthecostofthequalifyingassetduringthecapitalizationperiod;(2)exchangedifferencesrelatedtohedginginstrumentsforthepurposeofhedgingagainstforeigncurrencyrisksareaccountedforusinghedgeaccounting;(3)exchangedifferencesarisingfromchangesinthecarryingamounts(otherthantheamortizedcost)ofmonetaryitemsatfairvaluethroughothercomprehensiveincomearerecognizedasothercomprehensiveincome.Whentheconsolidatedfinancialstatementsincludeforeignoperation(s),ifthereisforeigncurrencymonetaryitemconstitutinganetinvestmentinaforeignoperation,exchangedifferencesarisingfromchangesinexchangeratesarerecognizedas"exchangedifferencesarisingfromtranslationoffinancialstatementsdenominatedinforeigncurrencies"inothercomprehensiveincome,andinprofitorlossfortheperiodupondisposaloftheforeignoperation.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostaretranslatedtotheamountsinfunctionalcurrencyatthespotexchangeratesonthedatesofthetransactions;theamountsinfunctionalcurrencyremainunchanged.Foreigncurrencynon-monetaryitemsmeasuredatfairvaluearere-translatedatthespotexchangerateonthedatewhenthefairvalueisdetermined.Differencebetweenthere-translatedfunctionalcurrencyamountandtheoriginalfunctionalcurrencyamountistreatedaschangesinfairvalue(includingchangesinexchangerate)andisrecognizedinprofitorlossorasothercomprehensiveincome.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

10.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancial

statementsdenominatedinforeigncurrencies-continued

10.2TranslationoffinancialstatementsdenominatedinforeigncurrenciesForthepurposeofpreparingtheconsolidatedfinancialstatements,financialstatementsofaforeignoperationaretranslatedfromtheforeigncurrencyintoRMBusingthefollowingmethod:

assetsandliabilitiesonthebalancesheetaretranslatedatthespotexchangerateprevailingatthebalancesheetdate;shareholders'equityitemsexceptforunappropriatedprofitaretranslatedatthespotexchangeratesatthedatesonwhichsuchitemsarose;allitemsintheincomestatementaswellasitemsreflectingthedistributionofprofitsaretranslatedattheaverageexchangeratesoftheaccountingperiodoftheconsolidatedfinancialstatements;theopeningbalanceofunappropriatedprofitisthetranslatedclosingbalanceofthepreviousyear'sunappropriatedprofit;theclosingbalanceofunappropriatedprofitiscalculatedandpresentedonthebasisofeachtranslatedincomestatementandprofitdistributionitem.Thedifferencebetweenthetranslatedassetsandtheaggregateofliabilitiesandshareholders'equityitemsisrecognizedasothercomprehensiveincomeandincludedinshareholders'equity.Cashflowsarisingfromatransactioninforeigncurrencyandthecashflowsofaforeignsubsidiaryaretranslatedataverageexchangerateduringtheaccountingperiodofconsolidatedfinancialstatements.Theeffectofexchangeratechangesoncashandcashequivalentsisregardedasareconcilingitemandpresentedseparatelyinthecashflowstatementas"effectofexchangeratechangesoncashandcashequivalents".Theclosingbalancesandthecomparativefiguresofpreviousyeararepresentedatthetranslatedamountsinthepreviousyear'sfinancialstatements.OndisposaloftheGroup'sentireinterestinaforeignoperation,oruponalossofcontroloveraforeignoperationduetodisposalofcertaininterestinitorotherreasons,theGrouptransferstheaccumulatedexchangedifferencesarisingfromtranslationoffinancialstatementsofthisforeignoperationattributabletotheowners'equityoftheCompanyandpresentedunderothercomprehensiveincome,toprofitorlossintheperiodinwhichthedisposaloccurs.IncaseofadisposalofpartequityinvestmentsorotherreasonleadingtolowerinterestpercentageinforeignoperationsbutdoesnotresultintheGrouplosingcontroloveraforeignoperation,theexchangedifferencesarisingfromthetranslationofforeigncurrencystatementsrelatedtothisdisposedpartarere-attributedtominorityinterestsandarenotrecognizedinprofitorloss.Forpartialdisposalsofequityinterestsinforeignoperationswhichareassociatesorjointventures,theproportionateshareoftheaccumulatedexchangedifferencesarisingfromtranslationofstatementsofforeignoperationsisreclassifiedtoprofitorloss.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.FinancialinstrumentsTheGrouprecognizesafinancialassetorafinancialliabilitywhenitbecomesapartytothecontractualprovisionsofthefinancialinstrument.Forfinancialassetspurchasedorsoldinregularways,assetstobereceivedandliabilitiestobeassumedarerecognizedonthetransactiondateorassetssoldarederecognizedonthatdate.Financialassetsandfinancialliabilitiesareinitiallymeasuredatfairvalue(themethodfordeterminingthefairvaluesofthefinancialassetsandfinancialliabilitiesissetoutinrelateddisclosuresunder"basisofaccountingandprincipleofmeasurement"innote(IV)5).Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,transactioncostsareimmediatelyrecognizedinprofitorloss.Forotherfinancialassetsandfinancialliabilities,transactioncostsareincludedintheirinitialrecognizedamounts.Uponinitialrecognitionofcontractassets,notesreceivableandaccountsreceivablethatdonotcontainsignificantfinancingcomponentorwithoutconsideringthefinancingcomponentincludedinthecontractwithatermnotexceedingoneyearundertheAccountingStandardsforBusinessEnterprisesNo.14-Revenue("RevenueStandards"),theGroupadoptsthetransactionpriceasdefinedintheRevenueStandardsforinitialmeasurement.Theeffectiveinterestmethodisamethodofcalculatingtheamortizedcostofafinancialassetorafinancialliabilityandofallocatingtheinterestincomeorinterestexpensesovertherelevantaccountingperiods.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashflowsthroughtheexpectedlifeofthefinancialassetorfinancialliabilitytothegrosscarryingamountofthefinancialassetortotheamortizedcostofthefinancialliability.Whencalculatingtheeffectiveinterestrate,theGroupestimatesfuturecashflowsconsideringallcontractualtermsofthefinancialassetorfinancialliability(suchasrepaymentinadvance,extension,calloptionorothersimilaroptionsetc.)(withoutconsideringtheexpectedcreditlosses).Theamortizedcostofafinancialassetorafinancialliabilityistheamountofafinancialassetorafinancialliabilityinitiallyrecognizednetofprincipalrepaid,plusorlessthecumulativeamortizedamountarisingfromamortizationofthedifferencebetweentheamountinitiallyrecognizedandtheamountatthematuritydateusingtheeffectiveinterestmethod,netofcumulativecreditlossallowance(onlyapplicabletofinancialassets).

11.1Classification,recognitionandmeasurementoffinancialassetsSubsequenttoinitialrecognition,theGroup'sfinancialassetsofvariouscategoriesaresubsequentlymeasuredatamortizedcost,atfairvaluethroughothercomprehensiveincomeoratfairvaluethroughprofitorloss.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.1Classification,recognitionandmeasurementoffinancialassets-continuedIfthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,andthefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbycollectingcontractualcashflows,theGroupclassifiessuchfinancialassetasfinancialassetsatamortizedcost,whichincludecashandbankbalances,notesreceivable,accountsreceivable,otherreceivables,debtinvestments,andlong-termreceivablesetc.Ifthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,andthefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandsellingthefinancialasset,theGroupclassifiessuchfinancialassetasfinancialassetsatFVTOCI.TheaccountsreceivableandnotesreceivableclassifiedasatFVTOCIuponacquisitionarepresentedunderreceivablesfinancing,whiletheremainingitemsduewithinoneyear(inclusive)uponacquisitionarepresentedunderothercurrentassets.Otherfinancialassetsofsuchtypearepresentedasotherdebtinvestmentsiftheyaredueafteroneyearsincetheacquisition,orpresentedundernon-currentassetsduewithinoneyeariftheyareduewithinoneyear(inclusive)sincethebalancesheetdate.Oninitialrecognition,theGroupmayirrevocablydesignatenon-tradingequityinstruments,otherthancontingentconsiderationrecognizedthroughbusinesscombinationnotinvolvingenterprisesundercommoncontrol,asfinancialassetsatFVTOCIonanindividualbasis.SuchfinancialassetsatFVTOCIarepresentedasinvestmentsinotherequityinstruments.Afinancialassetisclassifiedasheldfortradingifoneofthefollowingconditionsissatisfied:

?Ithasbeenacquiredprincipallyforthepurposeofsellinginthenearterm;or?Oninitialrecognition,itispartofaportfolioofidentifiedfinancialinstrumentsthattheGroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-termprofit-taking;or?Itisaderivativethatisnotafinancialguaranteecontractordesignatedandeffectiveasa

hedginginstrument.Financialassetsmeasuredatfairvaluethroughprofitorloss("FVTPL")includethoseclassifiedasfinancialassetsatFVTPLandthosedesignatedasfinancialassetsatFVTPL.?FinancialassetsnotsatisfyingthecriteriaofclassificationasfinancialassetsatamortizedcostandfinancialassetsatFVTOCIareclassifiedasfinancialassetsatFVTPL.?Uponinitialrecognition,theGroupmayirrevocablydesignatethefinancialassetsasatFVTPLifdoingsoeliminatesorsignificantlyreducesaccountingmismatch.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.1Classification,recognitionandmeasurementoffinancialassets-continuedFinancialassetsatFVTPLotherthanderivativefinancialassetsarepresentedasfinancialassetsheld-for-trading.Financialassetswithamaturityoveroneyearsincethebalancesheetdate(orwithoutafixedmaturity)andexpectedtobeheldforoveroneyeararepresentedunderothernon-currentfinancialassets.

11.1.1FinancialassetsmeasuredatamortizedcostFinancialassetsmeasuredatamortizedcostaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestmethod.Gainorlossarisingfromimpairmentorderecognitionisrecognizedinprofitorloss.Forfinancialassetsmeasuredatamortizedcost,theGrouprecognizesinterestincomeusingeffectiveinterestmethod.TheGroupcalculatesandrecognizesinterestincomethroughgrosscarryingamountoffinancialassetsmultiplyingeffectiveinterestrate,exceptforthefollowingcircumstances:

?Forpurchasedororiginatedcredit-impairedfinancialassets,theGroupcalculatesand

recognizestheinterestincomebasedonamortizedcostofthefinancialassetandtheeffectiveinterestratethroughcreditadjustmentsinceinitialrecognition.

11.1.2FinancialassetsatFVTOCIForfinancialassetsclassifiedasatFVTOCI,exceptfortheimpairmentlossesorgainsandtheinterestincomeandexchangelossesorgainscalculatedusingtheeffectiveinterestmethodwhichareincludedinprofitorlossfortheperiod,thechangesinfairvalueareincludedinothercomprehensiveincome.Theamountsincludedinprofitorlossforeachperiodareequivalenttothatasifthefinancialassetshavebeenalwaysmeasuredatamortizedcost.Uponderecognition,theaccumulatedgainsorlossespreviouslyincludedinothercomprehensiveincomearetransferredtoprofitorlossfortheperiod.Changesinfairvalueofnon-tradingequityinstrumentinvestmentsdesignatedasfinancialassetsatFVTOCIarerecognizedinothercomprehensiveincome,andthecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeallocatedtothepartderecognizedaretransferredandincludedinretainedearnings.DuringtheperiodinwhichtheGroupholdsthenon-tradingequityinstruments,revenuefromdividendsisrecognizedinprofitorlossforthecurrentperiodwhen(1)theGrouphasestablishedtherightofcollectingdividends;(2)itisprobablethattheassociatedeconomicbenefitswillflowtotheGroup;and(3)theamountofdividendscanbemeasuredreliably.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.1Classification,recognitionandmeasurementoffinancialassets-continued

11.1.3FinancialassetsatFVTPLFinancialassetsatFVTPLaresubsequentlymeasuredatfairvalue.Gainorlossarisingfromchangesinfairvalueanddividendsandinterestrelatedtothefinancialassetsarerecognizedinprofitorloss.

11.2ImpairmentoffinancialinstrumentsForfinancialassetsatamortizedcost,financialassetsclassifiedasatFVTOCI,leasereceivables,contractassets,loancommitmentsthatarenotfinancialliabilitiesatFVTPL,financialliabilitiesthatarenotatFVTPLandfinancialguaranteecontractsthatarenotqualifiedforderecognitionduetothetransferoffinancialassetsorfinancialliabilitiesarisingfromcontinuinginvolvementofthetransferredfinancialassets,theGroupaccountsfortheimpairmentandrecognizestheprovisionforlossesonthebasisofexpectedcreditloss("ECL").Forallcontractassets,notesreceivableandaccountsreceivablearisingfromtransactionsregulatedbyRevenueStandards,andleasereceivablesarisingfromtransactionsregulatedbytheAccountingStandardsforBusinessEnterprisesNo.21-Leases,theGrouprecognizestheprovisionforlossesatanamountequivalenttolifetimeECL.Forotherfinancialinstruments(otherthanpurchasedororiginatedcredit-impairedfinancialassets),theGroupassessesthechangesincreditrisksinceinitialrecognitionofrelevantfinancialinstrumentsateachbalancesheetdate.Ifthecreditriskhasincreasedsignificantlysinceinitialrecognitionofthefinancialinstruments,theGrouprecognizestheprovisionforlossesatanamountequivalenttolifetimeECL;ifthecreditriskhasnotincreasedsignificantlysinceinitialrecognitionofthefinancialinstruments,theGrouprecognizestheprovisionforlossesatanamountequivalentto12-monthECL.TheincreaseorreversalofcreditlossprovisionforfinancialassetsotherthanthoseclassifiedasatFVTOCIisrecognizedasimpairmentlossorgainandincludedinprofitorlossfortheperiod.ForfinancialassetsclassifiedasatFVTOCI,thecreditlossprovisionisrecognizedinothercomprehensiveincomeandtheimpairmentlossorgainisincludedinprofitorlossfortheperiodwithoutreducingthecarryingamountofthefinancialassetsinthebalancesheet.WheretheGrouphasmeasuredtheprovisionforlossesatanamountequivalenttolifetimeECLofafinancialinstrumentinprioraccountingperiod,butthefinancialinstrumentnolongersatisfiesthecriteriaofsignificantincreaseincreditrisksinceinitialrecognitionatthecurrentbalancesheetdate,theGrouprecognizestheprovisionforlossesofthefinancialinstrumentatanamountequivalentto12-monthECLatthecurrentbalancesheetdate,withanyresultingreversalofprovisionforlossesrecognizedasimpairmentgainsinprofitorlossfortheperiod.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.2Impairmentoffinancialinstruments-continued

11.2.1SignificantincreaseofcreditriskTheGroupusesreasonableandsupportableforward-lookinginformationtoassesswhetherthecreditriskhasincreasedsignificantlysinceinitialrecognitionbycomparingtheriskofadefaultoccurringonthefinancialinstrumentatthebalancesheetdatewiththeriskofadefaultoccurringonthefinancialinstrumentatthedateofinitialrecognition.Forloancommitmentsandfinancialguaranteecontracts,thedateonwhichtheGroupbecomesapartytotheirrevocablecommitmentisconsideredtobethedateofinitialrecognitionintheapplicationofcriteriarelatedtothefinancialinstrumentforimpairment.Inparticular,thefollowinginformationistakenintoaccountwhenassessingwhethercreditriskhasincreasedsignificantly:

(1)Significantchangesininternalpriceindicatorsresultingfromchangesincreditrisk;

(2)Significantchangesintheratesorothertermsofanexistingfinancialinstrumentifthe

instrumentwasnewlyoriginatedorissuedatthebalancesheetdate(suchasmorestringentcovenants,increasedamountsofcollateralorguarantees,orhigherrateofreturn,etc.);

(3)Significantchangesintheexternalmarketindicatorsofcreditriskofthesamefinancial

instrumentorsimilarfinancialinstrumentswiththesameexpectedduration.Theseindicatorsinclude:creditspreads,creditdefaultswappricesagainstborrower,lengthoftimeandextenttowhichthefairvalueoffinancialassetsislessthantheiramortizedcost,andothermarketinformationrelatedtotheborrower(suchastheborrower'sdebtinstrumentsorchangesinthepriceofequityinstruments);

(4)Anactualorexpectedsignificantchangeinthefinancialinstrument'sexternalcreditrating;

(5)Anactualorexpecteddecreaseintheinternalcreditratingforthedebtor;

(6)Adversechangesinbusiness,financialoreconomicconditionsthatareexpectedtocausea

significantdecreaseinthedebtor'sabilitytomeetitsdebtobligations;

(7)Anactualorexpectedsignificantchangeintheoperatingresultsofthedebtor;

(8)Significantincreaseincreditriskofotherfinancialinstrumentsissuedbythesamedebtor;

(9)Significantadversechangesintheregulatory,economic,ortechnologicalenvironmentof

thedebtor;

(10)Significantchangesinthevalueofthecollateralsorthequalityofguaranteesorcredit

enhancementsprovidedbythirdparties,whichareexpectedtoreducethedebtor'seconomicmotivestorepaywithinthetimelimitspecifiedincontractoraffecttheprobabilityofdefault;

(11)Significantchangeinthedebtor'seconomicmotivestorepaywithinthetimelimit

specifiedincontract;

(12)Expectedchangestoloancontract,includingtheexemptionorrevisionofcontractual

obligations,thegrantingofinterest-freeperiods,thejumpininterestrates,therequirementforadditionalcollateralorguarantees,orotherchangesinthecontractualframeworkforfinancialinstrumentsthatmayresultfromthebreachofcontract;

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.2Impairmentoffinancialinstruments-continued

11.2.1Significantincreaseofcreditrisk-continued

(13)Significantchangeintheexpectedperformanceandrepaymentofthedebtor;

(14)SignificantchangeinthemethodusedbytheGrouptomanagethecreditoffinancial

instruments.TheGroupassumesthatthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognitionifthefinancialinstrumentisdeterminedtohavelowercreditriskatthebalancesheetdate.Afinancialinstrumentisdeterminedtohavelowercreditriskif:i)ithasalowerriskofdefault,ii)theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandiii)adversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.

11.2.2Credit-impairedfinancialassetsWhenaneventorseveraleventsthatareexpectedtohaveadverseimpactonthefuturecashflowsofthefinancialassetshaveoccurred,thefinancialassetsbecomecredit-impaired.Theevidencesofcreditimpairmentoffinancialassetsincludethefollowingobservableinformation:

(1)Significantfinancialdifficultyoftheissuerordebtor.

(2)Abreachofcontractbythedebtor,suchasadefaultordelinquencyininterestorprincipal

payments.

(3)Thecreditor,foreconomicorlegalreasonsrelatingtothedebtor'sfinancialdifficulty,

grantingaconcessiontothedebtor.

(4)Itbecomesprobablethatthedebtorwillenterbankruptcyorotherfinancialreorganizations.

(5)Thedisappearanceofanactivemarketforthefinancialassetbecauseoffinancial

difficultiesoftheissuerorthedebtor.

(6)Purchaseororiginationofafinancialassetwithalargescaleofdiscount,whichreflects

thefactofcreditloss.BasedontheGroup'sinternalcreditriskmanagement,theGroupconsidersaneventofdefaultoccurswheninformationdevelopedinternallyorobtainedfromexternalsourcesindicatesthatthedebtorisunlikelytopayitscreditors,includingtheGroup,infull(withouttakingintoaccountanycollateralsheldbytheGroup).

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.2Impairmentoffinancialinstruments-continued

11.2.3DeterminationofexpectedcreditlossTheGroupdeterminestheECLofrelevantfinancialinstrumentsusingthefollowingmethods:

?Forfinancialassets,thecreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflowsthatareduetotheGroupunderthecontractandthecashflowsthattheGroupexpectstoreceive;?Forundrawnloancommitments(refertoNoteIV,11.4.1.3forthedetailofaccounting

policies),thecreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflowsthatareduetotheGroupiftheholderoftheloancommitmentsdrawsdowntheloan,andthecashflowsthattheGroupexpectstoreceiveiftheloanisdrawndown.TheGroup'sestimationoftheECLforloancommitmentsisconsistentwithitsexpectationoftheloancommitmentsdrawndown.?Forfinancialguaranteecontracts(refertoNoteIV,11.4.1.3forthedetailofaccounting

policies),thecreditlossisthepresentvalueoftheexpectedpaymentstoreimbursetheholderforthecreditlossincurredlessanyamountsthattheGroupexpectstoreceivefromtheholder,thedebtororanyotherparty.?Forfinancialassetscredit-impairedatthebalancesheetdate,butnotpurchasedororiginatedcredit-impaired,thecreditlossisthedifferencebetweenthegrosscarryingamountofthefinancialassetsandthepresentvalueofestimatedfuturecashflowsdiscountedattheoriginaleffectiveinterestrate.ThefactorsreflectedbytheGroup'smeasurementofECLoffinancialinstrumentsinclude:

unbiasedprobabilityweightedaverageamountrecognizedbyassessingaseriesofpossibleresults;timevalueofmoney;reasonableandsupportableinformationrelatedtohistoricalevents,currentconditionandforecastoffutureeconomicpositionthatisavailablewithoutunduecostoreffortatthebalancesheetdate.

11.2.4Write-downoffinancialassetsWhentheGroupnolongerreasonablyexpectsthatthecontractualcashflowsoffinancialassetscanbecollectedinaggregateorinpart,theGroupwilldirectlywritedownthegrosscarryingamountofthefinancialassets,whichconstitutesderecognitionofrelevantfinancialassets.

11.3TransferoffinancialassetsTheGroupwillderecognizeafinancialassetifoneofthefollowingconditionsissatisfied:(i)thecontractualrightstothecashflowsfromthefinancialassetexpire;(ii)thefinancialassethasbeentransferredandsubstantiallyalltherisksandrewardsofownershipofthefinancialassetistransferredtothetransferee;or(iii)althoughthefinancialassethasbeentransferred,theGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialassetbuthasnotretainedcontrolofthefinancialasset.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.3Transferoffinancialassets-continuedIftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofafinancialasset,anditretainscontrolofthefinancialasset,theGroupwillrecognizethefinancialassettotheextentofitscontinuinginvolvementinthetransferredfinancialassetandrecognizeanassociatedliability.TheGroupwillmeasurerelevantliabilitiesasfollows:

?Fortransferredfinancialassetscarriedatamortizedcost,thecarryingamountofrelevantliabilitiesisthecarryingamountoffinancialassetstransferredwithcontinuinginvolvementlessamortizedcostoftheGroup'sretainedrights(iftheGroupretainsrelevantrightsupontransferoffinancialassets)withadditionofamortizedcostofobligationsassumedbytheGroup(iftheGroupassumesrelevantobligationsupontransferoffinancialassets).Relevantliabilitiesarenotdesignatedasfinancialliabilitiesatfairvaluethroughprofitorloss.?Fortransferredfinancialassetscarriedatfairvalue,thecarryingamountofrelevant

liabilitiesisthecarryingamountoffinancialassetstransferredwithcontinuinginvolvementlessfairvalueoftheGroup'sretainedrights(iftheGroupretainsrelevantrightsupontransferoffinancialassets)withadditionoffairvalueofobligationsassumedbytheGroup(iftheGroupassumesrelevantobligationsupontransferoffinancialassets).Accordingly,thefairvalueofrelevantrightsandobligationsshallbemeasuredonanindividualbasis.Forthetransferofafinancialassetinitsentiretythatsatisfiesthederecognitioncriteria,thedifferencebetween(1)thecarryingamountofthefinancialassettransferredand(2)thesumoftheconsiderationreceivedfromthetransferandanycumulativegainorlossthathasbeenrecognizedinothercomprehensiveincome,isrecognizedinprofitorloss.Wherethetransferredassetsarenon-tradingequityinstrumentinvestmentsdesignatedasatFVTOCI,cumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredoutandincludedinretainedearnings.Ifapartofthetransferredfinancialassetqualifiesforderecognition,theoverallcarryingamountofthefinancialassetpriortotransferisallocatedbetweenthepartthatcontinuestoberecognizedandthepartthatisderecognized,basedontherespectivefairvalueofthosepartsatthedateoftransfer.Thedifferencebetween(1)thecarryingamountallocatedtothepartderecognizedonthedateofderecognition;and(2)thesumoftheconsiderationreceivedforthepartderecognizedandanycumulativegainorlossallocatedtothepartderecognizedwhichhasbeenpreviouslyrecognizedinothercomprehensiveincome,isrecognizedinprofitorloss.Wherethetransferredassetsarenon-tradingequityinstrumentinvestmentsdesignatedasatFVTOCI,cumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredoutandincludedinretainedearnings.Foratransferofafinancialassetinitsentiretythatdoesnotsatisfythederecognitioncriteria,theGroupcontinuestorecognizethetransferredfinancialassetinitsentirety.Theconsiderationreceivedfromtransferofassetsisrecognizedasaliabilityuponreceipt.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.4ClassificationoffinancialliabilitiesandequityinstrumentsFinancialinstrumentsissuedbytheGrouportheircomponentsareclassifiedintofinancialliabilitiesorequityinstrumentsonthebasisofthesubstanceofthecontractualarrangementsandtheeconomicnaturenotonlythelegalform,togetherwiththedefinitionoffinancialliabilityandequityinstrumentoninitialrecognition.

11.4.1Classification,recognitionandmeasurementoffinancialliabilitiesOninitialrecognition,financialliabilitiesareclassifiedintofinancialliabilitiesatFVTPLandotherfinancialliabilities.

11.4.1.1FinancialliabilitiesatFVTPLFinancialliabilitiesatFVTPLconsistoffinancialliabilitiesheldfortrading(includingderivativesclassifiedasfinancialliabilities)andthosedesignatedasatFVTPL.Exceptforderivativefinancialliabilitiespresentedseparately,thefinancialliabilitiesatFVTPLarepresentedasheld-for-tradingfinancialliabilities.Afinancialliabilityisclassifiedasheldfortradingifoneofthefollowingconditionsissatisfied:

?Ithasbeenacquiredprincipallyforthepurposeofrepurchasinginthenearterm;or?Oninitialrecognition,itispartofaportfolioofidentifiedfinancialinstrumentsthatthe

GroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-termprofit-taking;or?Itisaderivativethatisnotafinancialguaranteecontractordesignatedandeffectiveasa

hedginginstrument.AfinancialliabilitymaybedesignatedasatFVTPLoninitialrecognitionwhenoneofthefollowingconditionsissatisfied:(i)Suchdesignationeliminatesorsignificantlyreducesaccountingmismatch;or(ii)TheGroupmakesmanagementandperformanceevaluationonafairvaluebasis,inaccordancewiththeGroup'sformallydocumentedriskmanagementorinvestmentstrategy,andreportstokeymanagementpersonnelonthatbasis.(iii)Thequalifiedhybridfinancialinstrumentcombinesfinancialassetwithembeddedderivatives.Held-for-tradingfinancialliabilitiesaresubsequentlymeasuredatfairvalue.Anygainsorlossesarisingfromchangesinfairvalueandanydividendsorinterestexpensespaidonthefinancialliabilitiesarerecognizedinprofitorloss.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.4Classificationoffinancialliabilitiesandequityinstruments-continued

11.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued

11.4.1.1FinancialliabilitiesatFVTPL-continuedForafinancialliabilitydesignatedasatFVTPL,theamountofchangesinfairvalueofthefinancialliabilitythatareattributabletochangesinthecreditriskofthatliabilityshallbepresentedinothercomprehensiveincome,whileotherchangesinfairvalueareincludedinprofitorlossforthecurrentperiod.Uponthederecognitionofsuchfinancialliability,theaccumulatedamountofchangesinfairvaluethatareattributabletochangesinthecreditriskofthatliability,whichwasrecognizedinothercomprehensiveincome,istransferredtoretainedearnings.Anydividendorinterestexpenseonthefinancialliabilitiesisrecognizedinprofitorloss.Iftheaccountingtreatmentfortheimpactofthechangeincreditriskofsuchfinancialliabilityintheabovewayswouldcreateorenlargeanaccountingmismatchinprofitorloss,theGroupshallpresentallgainsorlossesonthatliability(includingtheeffectsofchangesinthecreditriskofthatliability)inprofitorlossfortheperiod.ForfinancialliabilitiesarisingfromcontingentconsiderationrecognizedbytheGroupastheacquirerinthebusinesscombinationnotinvolvingenterprisesundercommoncontrol,theGroupmeasuressuchfinancialliabilitiesatfairvaluethroughprofitorloss,andincludesthechangesinthefinancialliabilitiesinprofitorlossfortheperiod.

11.4.1.2OtherfinancialliabilitiesExceptforfinancialliabilities,financialguaranteecontractsandloancommitmentsarisingfromtransferoffinancialassetsthatdonotmeetthederecognitioncriteriaorthosearisingfromcontinuinginvolvementinthetransferredfinancialassets,otherfinancialliabilitiesaresubsequentlymeasuredatamortizedcost,withgainorlossarisingfromderecognitionoramortizationrecognizedinprofitorloss.IfthemodificationorrenegotiationforthecontractbytheGroupanditscounterpartiesdoesnotresultinderecognitionofafinancialliabilitysubsequentlymeasuredatamortizedcostbutthechangesincontractualcashflows,theGroupwillrecalculatethecarryingamountofthefinancialliability,withrelevantgainorlossrecognizedinprofitorloss.TheGroupwilldeterminethecarryingamountofthefinancialliabilitybasedonthepresentvalueofrenegotiatedormodifiedcontractualcashflowsdiscountedattheoriginaleffectiveinterestrateofthefinancialliability.Forallcostsorexpensesarisingfrommodificationorrenegotiationofthecontract,theGroupwilladjustthemodifiedcarryingamountofthefinancialliabilityandmakeamortizationduringtheremainingtermofthemodifiedfinancialliability.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.4Classificationoffinancialliabilitiesandequityinstruments-continued

11.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued

11.4.1.3FinancialguaranteecontractsandloancommitmentsAfinancialguaranteecontractisacontractthatrequirestheissuertomakespecifiedpaymentstoreimbursetheholderofthecontractforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.Subsequenttoinitialrecognition,financialguaranteecontractsthatarenotdesignatedasfinancialliabilitiesatfairvaluethroughprofitorlossorfinancialliabilitiesarisingfromtransferoffinancialassetsthatdonotmeetthederecognitioncriteriaorthosearisingfromcontinuinginvolvementinthetransferredfinancialassets,andloancommitmentstoprovidealoanatabelow-marketinterestrate,whicharenotdesignatedatfairvaluethroughprofitorloss,aremeasuredatthehigherof:(1)amountoflossprovision;and(2)theamountinitiallyrecognizedlesscumulativeamortizationamountdeterminedbasedontherevenuestandards.

11.4.2DerecognitionoffinancialliabilitiesTheGroupderecognizesafinancialliability(orpartofit)whentheunderlyingpresentobligation(orpartofit)isdischarged.AnagreementbetweentheGroup(thedebtor)andthecreditortoreplacetheoriginalfinancialliabilitywithanewfinancialliabilitywithsubstantiallydifferenttermsisaccountedforasanextinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.WhentheGroupderecognizesafinancialliabilityorapartofit,itrecognizesthedifferencebetweenthecarryingamountofthefinancialliability(orpartofthefinancialliability)derecognizedandtheconsiderationpaid(includinganynon-cashassetstransferredornewfinancialliabilitiesassumed)inprofitorloss.

11.4.3EquityinstrumentsAnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheGroupafterdeductingallofitsliabilities.Equityinstrumentsissued(includingrefinanced),repurchased,soldandcancelledbytheGrouparerecognizedaschangesinequity.ChangesinfairvalueofequityinstrumentsarenotrecognizedbytheGroup.Transactioncostsrelatedtoequitytransactionsaredeductedfromequity.TheGrouprecognizesthedistributiontoholdersoftheequityinstrumentsasdistributionofprofits,anddividendspaiddonotaffecttotalamountofshareholders'equity.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.5DerivativesandembeddedderivativesDerivativesincludeforwardexchangecontracts,currencyswaps,interestrateswapsandforeignexchangeoptions,etc.Derivativesareinitiallymeasuredatfairvalueatthedatewhenthederivativecontractsareenteredintoandaresubsequentlymeasuredatfairvalue.DerivativesembeddedinhybridcontractswithafinancialassethostarenotseparatedbytheGroup.Thehybridcontractshallapplytherelevantaccountingstandardsregardingtheclassificationoffinancialassetsasawhole.DerivativesembeddedinhybridcontractswithhoststhatarenotfinancialassetsareseparatedandtreatedasseparatederivativesbytheGroupwhentheymeetthefollowingconditions:

(1)theeconomiccharacteristicsandrisksoftheembeddedderivativearenotcloselyrelatedto

thoseofthehostcontract;

(2)aseparateinstrumentwiththesametermsastheembeddedderivativewouldmeetthe

definitionofaderivative;

(3)thehybridcontractsarenotmeasuredatfairvaluethroughprofitorloss.Fortheembeddedderivativeseparatedfromthehostcontracts,theGroupaccountsforthehostcontractsinthehybridcontractswithapplicableaccountingstandards.WhentheembeddedderivativeswhosefairvaluecannotbemeasuredreliablybytheGroupaccordingtothetermsandconditionsoftheembeddedderivatives,thefairvalueofsuchderivativesaremeasuredatthedifferencebetweenthefairvalueofthehybridcontractsandthefairvalueofthehostcontracts.Byadoptingtheabovemethod,iftheembeddedderivativecannotbemeasuredonastand-alonebasisatthetimewhenitisacquiredoratsubsequentbalancesheetdates,thehybridinstrumentisdesignatedasfinancialinstrumentsatfairvaluethroughprofitorlossasawhole.

11.6OffsettingfinancialassetsandfinancialliabilitiesWheretheGrouphasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.

11.7CompoundinstrumentsForconvertiblebondsissuedbytheGroupthatcontainbothliabilitiesandconversionoptionthatmayconverttheliabilitiestoitsownequityinstrument,uponinitialrecognition,thebondsaresplitintoliabilitiesandconversionoptionwhichareseparatelyrecognized.Therein,theconversionoptionthatexchangesafixedamountofcashorotherfinancialassetsforafixedamountofequityinstrumentsisaccountedforasanequityinstrument.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.7Compoundinstruments-continuedUponinitialrecognition,thefairvalueofliabilityportionisdeterminedbasedontheprevailingmarketpriceofthebondscontainingnoconversionoption.Theoverallissuepriceoftheconvertiblebondsnetofthefairvalueoftheliabilityportionisconsideredasthevalueoftheconversionoptionthatenablesthebondsholdertoconvertthebondstoequityinstruments,andisincludedinotherequityinstruments.Theliabilityportionoftheconvertiblebondsissubsequentlymeasuredatamortizedcostusingeffectiveinterestmethod;thevalueoftheconversionoptionclassifiedasequityinstrumentisremainedinequityinstrument.Theexpiryorconversionofconvertiblebondswillnotresultinlossorgain.Thetransactioncostsincurredforissuanceoftheconvertiblebondsareallocatedbetweentheliabilityportionandequityinstrumentportioninproportiontotheirrespectivefairvalues.Thetransactioncostrelatingtotheequityinstrumentportionisdirectlyincludedinequityinstrument;whilethetransactioncostrelatingtotheliabilityportionisincludedinthecarryingamountoftheliability,andamortizedoverthelifetimeoftheconvertiblebondsusingeffectiveinterestmethod.

11.8ReclassificationoffinancialinstrumentsWhentheGroupchangesthebusinessmodeltomanagethefinancialassets,thefinancialassetsaffectedwillbereclassifiedandnofinancialliabilitieswillbereclassified.ThefinancialassetsarereclassifiedbytheGroupandareaccountedforprospectivelysincethedateofreclassification(i.e.,thefirstdateoftheinitialreportingperiodafterthebusinessmodelofwhichthefinancialassetsarereclassifiedbytheenterpriseischanged).Whereafinancialassetatamortizedcostisreclassifiedasafinancialassetatfairvaluethroughprofitorloss("FVTPL")bytheGroup,suchfinancialassetismeasuredatfairvalueatthedateofreclassificationandthedifferencebetweentheoriginalcarryingamountandthefairvalueisrecognizedinprofitorlossfortheperiod.Whereafinancialassetatamortizedcostisreclassifiedasafinancialassetatfairvaluethroughothercomprehensiveincome("FVTOCI")bytheGroup,suchfinancialassetismeasuredatfairvalueatthedateofreclassification,andthedifferencebetweentheoriginalcarryingamountandthefairvalueisrecognizedinothercomprehensiveincome.WhereafinancialassetatFVTOCIisreclassifiedasafinancialassetatamortizedcostbytheGroup,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredoutandthefairvalueatthedateofreclassificationisadjusted.Theadjustedfairvalueisdeterminedasthenewcarryingamount,asifthefinancialassethasbeenalwaysmeasuredatamortizedcost.ThereclassificationofthefinancialassetshallnotaffectitseffectiveinterestrateorthemeasurementofECL.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.8Reclassificationoffinancialinstruments-continuedWhereafinancialassetatFVTOCIisreclassifiedasafinancialassetatFVTPLbytheGroup,suchfinancialassetcontinuestobemeasuredatfairvalue.Atthesametime,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredtoprofitorlossfortheperiod.WhereafinancialassetatFVTPLisreclassifiedasafinancialassetatamortizedcostbytheGroup,thefairvalueatthedateofreclassificationisdeterminedasthenewgrosscarryingamount.WhereafinancialassetatFVTPLisreclassifiedasafinancialassetatFVTOCIbytheGroup,suchfinancialassetcontinuestobemeasuredatfairvalue.WhereafinancialassetatFVTPLisreclassified,theeffectiveinterestrateisdeterminedonthebasisofthefairvalueofthefinancialassetatthedateofreclassification.

12.Receivables

12.1DeterminationandaccountingmethodsforexpectedcreditlossesofreceivablesTheGroupassessesthecreditriskofreceivableswithsignificantlydifferentcreditrisksonanindividualbasis,anddeterminethecreditlossesofreceivablesonaportfoliobasisusinganimpairmentmatrixforotherreceivables.Theamountofincreaseinorreversalofallowanceforexpectedcreditlossesonreceivablesisincludedinprofitorlossfortheperiodascreditimpairmentlossesorgains.

12.2Categoriesofportfoliosforwhichbaddebtprovisionisassessedonaportfoliobasis

accordingtocreditriskcharacteristicsandthebasisfordeterminationTheGroupclassifiesreceivablesintogroupsA,BandCbasedoncommonriskcharacteristics.ThecommoncreditriskcharacteristicsadoptedbytheGroupinclude:typeoffinancialinstrument,creditriskrating,typeofcollateral,initialrecognitiondate,remainingcontractualterm,industryofthedebtor,geographicallocationofthedebtor,valueofthecollateraltothefinancialasset,etc.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

12.Receivables-continued

12.2Categoriesofportfoliosforwhichbaddebtprovisionisassessedonaportfoliobasis

accordingtocreditriskcharacteristicsandthebasisfordetermination-continuedTheGroupmakesinternalcreditratingsoncustomersanddeterminesexpectedlossrateofreceivables.Basisfordeterminingratingsandtheexpectedlossratesareasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Internalcredit

rating

InternalcreditratingBasisfordeterminingportfolioExpectedaveragelossrate(%)
ACustomerscanmakerepaymentswithincredittermandhavegoodcreditrecordsbasedonhistoricalexperience.Theprobabilityofdefaultonpaymentofdueamountsisextremelylowintheforeseeablefuture.0.00-0.10
BThecustomersmayhaveoverduepaymentbasedonhistoricalexperiencebuttheycanmakerepayments.0.10-0.30
CTheevidenceindicatesthattheoverduecreditrisksofthecustomersaresignificantlyincreasedandthereisprobabilityofdefaultonpayment.0.30-50.00

12.3Determinationcriteriaforprovisionofbaddebtsonanindividualbasis

InternalcreditratingsBasistodeterminetheprovisionforbaddebtsonanindividualbasisExpectedaveragelossratio(%)
DThereisevidenceshowingthatthereceivablesfromcustomersareimpaired,orthatthecustomersareexperiencingsignificantfinancialdifficultiesandthusthereceivableswillbeirrecoverableintheforeseeablefuture.50.00-100.00

13.ReceivablesfinancingNotesreceivableclassifiedasatFVTOCIshouldbelistedasreceivablesfinancingwithinoneyear(includingoneyear)fromthedateofacquisition.Thoseoveroneyearshouldbelistedasotherdebtinvestments.Forrelatedaccountingpolicies,refertoNote(IV)11andNote(IV)12.

14.Inventories

14.1Categoriesofinventories,valuationmethodofinventoriesupondelivery,inventorycount

system,andamortizationmethodforowcostandshort-livedconsumableitemsand

packagingmaterials

14.1.1CategoriesofinventoriesTheGroup'sinventoriesmainlyincluderawmaterials,merchandiseandothers.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpendituresincurredinbringingtheinventoriestotheirpresentlocationandcondition.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

14.Inventories-continued

14.1Categoriesofinventories,valuationmethodofinventoriesupondelivery,inventorycount

system,andamortizationmethodforowcostandshort-livedconsumableitemsandpackagingmaterials-continued

14.1.2ValuationmethodofinventoriesupondeliveryTheactualcostofinventoriesupondeliveryiscalculatedusingtheweightedaveragemethodandfirst-in-first-outmethod.

14.1.3InventorycountsystemTheperpetualinventorysystemismaintainedforstocksystem.

14.1.4Amortizationmethodforlowcostandshort-livedconsumableitemsandpackaging

materialsPackagingmaterialsandlowcostandshort-livedconsumableitemsareamortizedusingtheimmediatewrite-offmethod.

14.2RecognitioncriteriaandprovisionmethodfordeclineinvalueofinventoriesAtthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Ifthecostofinventoriesishigherthanthenetrealizablevalue,aprovisionfordeclineinvalueofinventoriesismade.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Netrealizablevalueisdeterminedonthebasisofclearevidenceobtained,aftertakingintoconsiderationthepurposesofinventoriesbeingheldandeffectofpostbalancesheetevents.Provisionfordeclineinvalueofinventoriesismadebasedontheexcessofcostofinventoryoveritsnetrealizablevalueonanitem-by-itembasis.Aftertheprovisionfordeclineinvalueofinventoriesismade,ifthecircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistsothatthenetrealizablevalueofinventoriesishigherthantheircost,theoriginalprovisionfordeclineinvalueisreversedandthereversalisincludedinprofitorlossfortheperiod.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

15.Long-termequityinvestments

15.1BasisfordeterminingjointcontrolandsignificantinfluenceoverinvesteeControlisarchivedwhentheGrouphasthepowerovertheinvesteeandhasrightstovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytouseitspowertoaffectitsreturns.Jointcontrolisthecontractuallyagreedsharingofcontroloveraneconomicactivity,andexistsonlywhenthestrategicfinancialandoperatingpolicydecisionsrelatingtotheactivityrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontroloverthosepolicies.Whendeterminingwhetheraninvestingenterpriseisabletoexercisecontrolorsignificantinfluenceoveraninvestee,theeffectofpotentialvotingrightsoftheinvestee(forexample,warrantsandconvertibledebts)heldbytheinvestingenterprisesorotherpartiesthatarecurrentlyexercisableorconvertibleshallbeconsidered.

15.2DeterminationofinitialinvestmentcostForalong-termequityinvestmentacquiredthroughbusinesscombinationinvolvingenterprisesundercommoncontrol,shareofcarryingamountofowners'equityoftheacquireeintheconsolidatedfinancialstatementsofultimatecontrollingpartyisrecognizedasinitialinvestmentcostoflong-termequityinvestmentatthedateofcombination.Thedifferencebetweeninitialinvestmentcostoflong-termequityinvestmentandcashpaid,non-cashassetstransferredandcarryingamountofliabilitiesassumed,isadjustedincapitalreserve.Ifthebalanceofcapitalreserveisnotsufficienttoabsorbthedifference,anyexcessisadjustedtoretainedearnings.Iftheconsiderationofthecombinationissatisfiedbytheissueofequitysecurities,theinitialinvestmentcostofthelong-termequityinvestmentistheshareofcarryingamountofowners'equityoftheacquireeintheconsolidatedfinancialstatementsofultimatecontrollingpartyatthedateofcombination.Theaggregatefacevalueofthesharesissuedisaccountedforassharecapital.Thedifferencebetweentheinitialinvestmentcostandtheaggregatefacevalueofthesharesissuedisadjustedtocapitalreserve.Ifthebalanceofcapitalreserveisnotsufficienttoabsorbthedifference,anyexcessisadjustedtoretainedearnings.Whereequityinterestsinanacquireeareacquiredinstagesthroughmultipletransactionsultimatelyconstitutingabusinesscombinationinvolvingenterprisesundercommoncontrol,theacquirershalldetermineifthesetransactionsareconsideredtobea"packagedeal".Ifyes,thesetransactionsareaccountedforasasingletransactionwherecontrolisobtained.Ifno,theinitialinvestmentcostofthelong-termequityinvestmentistheshareofcarryingamountofowners'equityoftheacquireeintheconsolidatedfinancialstatementsofultimatecontrollingpartyatthedateofcombination.Thedifferencebetweentheinitialinvestmentcostandthesumofcarryingamountofequityinvestmentspreviouslyheldintheacquireeandthenewinvestmentcostisadjustedtocapitalreserve.Ifthebalanceofcapitalreserveisnotsufficienttoabsorbthedifference,anyexcessisadjustedtoretainedearnings.Othercomprehensiveincomerecognizedforthepreviouslyheldequityinvestmentsbyaccountingtreatmentofequitymethodornon-tradingequityinstrumentinvestmentsdesignatedasatFVTOCIisnotsubjecttoaccountingtreatmenttemporarily.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

15.Long-termequityinvestments-continued

15.2Determinationofinitialinvestmentcost-continuedForalong-termequityinvestmentacquiredthroughbusinesscombinationnotinvolvingenterprisesundercommoncontrol,theinvestmentcostofthelong-termequityinvestmentacquiredisthecostofacquisition.Theexpensesincurredbytheacquirerinrespectofauditing,legalservices,valuationandconsultancyservicesandotherassociatedadministrativeexpensesattributabletothebusinesscombinationarerecognizedinprofitorlosswhentheyareincurred.Thelong-termequityinvestmentacquiredotherwisethanthroughabusinesscombinationisinitiallymeasuredatitscost.Whentheentityisabletoexercisesignificantinfluenceorjointcontrol(butnotcontrol)overaninvesteeduetoadditionalinvestment,thecostoflong-termequityinvestmentsisthesumofthefairvalueofpreviously-heldequityinvestmentsdeterminedinaccordancewithAccountingStandardsforBusinessEnterprisesNo.22-FinancialInstruments:

RecognitionandMeasurement(ASBENo.22)andtheadditionalinvestmentcost.

15.3Subsequentmeasurementandrecognitionofprofitorloss

15.3.1Long-termequityinvestmentsaccountedforusingthecostmethodLong-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodintheCompany'sseparatefinancialstatements.AsubsidiaryisaninvesteethatiscontrolledbytheGroup.Underthecostmethod,along-termequityinvestmentismeasuredatinitialinvestmentcost.Whenadditionalinvestmentismadeortheinvestmentisrecouped,thecostofthelong-termequityinvestmentisadjustedaccordingly.Investmentincomeisrecognizedintheperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestee.

15.3.2Long-termequityinvestmentsaccountedforusingtheequitymethodExceptforinvestmentsinassociatesandjointventuresclassifiedasheld-for-salepartlyorwholly,theGroupaccountsforinvestmentinassociatesandjointventuresusingtheequitymethod.AnassociateisanentityoverwhichtheGrouphassignificantinfluenceandajointventureisajointarrangementwherebytheGrouponlyhasrightstothenetassetsofthearrangement.Undertheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,noadjustmentismadetotheinitialinvestmentcost.WheretheinitialinvestmentcostislessthantheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,thedifferenceisrecognizedinprofitorlossfortheperiod,andthecostofthelong-termequityinvestmentisadjustedaccordingly.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

15.Long-termequityinvestments-continued

15.3Subsequentmeasurementandrecognitionofprofitorloss-continued

15.3.2Long-termequityinvestmentsaccountedforusingtheequitymethod-continuedUndertheequitymethod,theGrouprecognizesitsshareofthenetprofitorlossandothercomprehensiveincomeoftheinvesteefortheperiodasinvestmentincomeandothercomprehensiveincomefortheperiod.Meanwhile,thecarryingamountoflong-termequityinvestmentisadjusted;thecarryingamountoflong-termequityinvestmentisdecreasedinaccordancewithitsshareoftheinvestee'sdeclaredprofitorcashdividends;otherchangesinowners'equityoftheinvesteeotherthannetprofitorlossandothercomprehensiveincomearecorrespondinglyadjustedtothecarryingamountofthelong-termequityinvestment,andrecognizedincapitalreserve.TheGrouprecognizesitsshareoftheinvestee'snetprofitorlossbasedonthefairvalueoftheinvestee'sindividualidentifiableassets,etc.attheacquisitiondateaftermakingappropriateadjustments.Whentheinvestee'saccountingpoliciesandaccountingperiodareinconsistentwiththoseoftheGroup,theGrouprecognizesinvestmentincomeandothercomprehensiveincomeaftermakingappropriateadjustmentstoconformtotheGroup'saccountingpoliciesandaccountingperiod.However,unrealizedgainsorlossesresultingfromtheGroup'stransactionswithitsassociatesandjointventures,whichdonotconstituteabusiness,areeliminatedbasedontheproportionattributabletotheGroupandtheninvestmentgainsorlossesarerecognized.However,unrealizedlossesresultingfromtheGroup'stransactionswithitsassociatesandjointventureswhichrepresentimpairmentlossesonthetransferredassetsarenoteliminated.TheGroupdiscontinuesrecognizingitsshareofnetlossesoftheinvesteeafterthecarryingamountofthelong-termequityinvestmenttogetherwithanylong-termintereststhatinsubstanceformpartofitsnetinvestmentintheinvesteearereducedtozero.Inaddition,iftheGrouphasincurredobligationstoassumeadditionallosses,aprovisionisrecognizedaccordingtotheobligationexpected,andrecordedintheinvestmentlossfortheperiod.Wherenetprofitsaresubsequentlymadebytheinvestee,theGroupresumesrecognizingitsshareofthoseprofitsonlyafteritsshareoftheprofitsexceedstheshareoflossespreviouslynotrecognized.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

15.Long-termequityinvestments-continued

15.4Disposaloflong-termequityinvestmentsOndisposalofalong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandreceivableandthecarryingamountisrecognizedinprofitorlossfortheperiod.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,iftheremaininginterestafterdisposalisstillaccountedforusingtheequitymethod,othercomprehensiveincomepreviouslyrecognizedusingtheequitymethodisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;owners'equityrecognizedduetootherchangesinowners'equityoftheinvestee(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.Forlong-termequityinvestmentsaccountedforusingthecostmethod,iftheremaininginterestafterdisposalisstillaccountedforusingthecostmethod,othercomprehensiveincomepreviouslyrecognizedusingtheequitymethodorinaccordancewiththestandardsfortherecognitionandmeasurementoffinancialinstrumentsbeforeobtainingthecontrolovertheinvestee,isaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;otherchangesinowners'equityintheinvestee'snetassetsrecognizedundertheequitymethod(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.WheretheGrouplosescontrolovertheinvesteeduetodisposalofpartofshares,andinpreparingtheseparatefinancialstatements,remainingsharesafterdisposalcanhavejointcontrolorsignificantinfluenceovertheinvestee,theequitymethodshallbeadoptedtoadjusttheremainingsharesastheyareaccountedforunderequitymethodsincetheacquisitiondate.Ifremainingsharesafterdisposalcannothavejointcontrolorsignificantinfluenceovertheinvestee,theyareaccountedforinaccordancewiththestandardsforrecognitionandmeasurementoffinancialinstruments,andthedifferencebetweenfairvalueondateoflosingcontrolandcarryingamountisrecognizedinprofitorlossfortheperiod.Othercomprehensiveincomerecognizedusingtheequitymethodorinaccordancewiththestandardsfortherecognitionandmeasurementoffinancialinstrumentsbeforelosingcontrolovertheinvestee,isaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilitieswhenthecontrolovertheinvesteeislost;otherchangesinowners'equityintheinvestee'snetassetsrecognizedundertheequitymethod(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.Whereremainingsharesafterdisposalareaccountedforunderequitymethod,othercomprehensiveincomeandotherowners'equityaretransferredonaproratabasis.Whereremainingsharesafterdisposalareaccountedforinaccordancewiththestandardsforrecognitionandmeasurementoffinancialinstruments,othercomprehensiveincomeandotherowners'equityarealltransferred.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

15.Long-termequityinvestments-continued

15.4Disposaloflong-termequityinvestments-continuedWheretheGrouplosesjointcontrolorsignificantinfluenceovertheinvesteeafterpartdisposalofshares,remainingsharesafterdisposalareaccountedforinaccordancewiththestandardsforrecognitionandmeasurementoffinancialinstruments,andthedifferencebetweenfairvalueatthedateoflosingjointcontrolorsignificantinfluenceandcarryingamountisrecognizedinprofitorlossfortheperiod.Othercomprehensiveincomepreviouslyrecognizedundertheequitymethod,isaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilitieswhentheequitymethodisnotadopted,andotherchangesinowners'equityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistributionaretransferredtoinvestmentincomefortheperiodwhentheequitymethodisnotadopted.TheGroupdisposesofitsequityinvestmentinsubsidiariesthroughmultipletransactionsstepbystepuntilitlosescontroloverthesubsidiaries.Ifthesetransactionsbelongto"packagedeal",alltransactionsaredeemedasonetransactionondisposalofequityinvestmentinsubsidiaries,andthedifferencebetweentheamountofdisposalandcarryingamountoflong-termequityinvestmentisrecognizedasothercomprehensiveincome,andtransferredtoprofitorlossfortheperiodwhenthecontrolislost.

16.InvestmentpropertiesInvestmentpropertyisthepropertyheldbytheGrouptoearnrentalsorforcapitalappreciationorboth.Itincludesalanduserightthatisleasedoutandabuildingthatisleasedout.Aninvestmentpropertyismeasuredinitiallyatcost.SubsequentexpendituresincurredforsuchinvestmentpropertyareincludedinthecostoftheinvestmentpropertyifitisprobablethateconomicbenefitsassociatedwiththeinvestmentpropertywillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably.Othersubsequentexpendituresarerecognizedinprofitorlossfortheperiodinwhichtheyareincurred.TheGroupusesthecostmodelforsubsequentmeasurementofinvestmentproperty,andtheinvestmentpropertiesaredepreciatedovertheirusefullivesusingthestraight-linemethod.Thedepreciationlife,estimatedresidualvaluerateandannualdepreciationrateofeachcategoryofinvestmentpropertiesareasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Category

CategoryDepreciationlife(year)Residualvaluerate(%)Annualdepreciationrate(%)
Landuserights21.25-50-2.00-4.71
Buildingsandstructures10-43.175.002.20-9.50

Aninvestmentpropertyisderecognizedupondisposalorwhentheinvestmentpropertyispermanentlywithdrawnfromuseandnofutureeconomicbenefitsareexpectedfromthedisposal.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

16.Investmentproperties-continuedWhenaninvestmentpropertyissold,transferred,retiredordamaged,theGrouprecognizestheamountofanyproceedsondisposalnetofthecarryingamountandrelatedtaxesinprofitorlossfortheperiod.

17.FixedassetsanddepreciationFixedassetsaretangibleassetsthatareheldforuseintheproductionorsupplyofgoodsorservices,forrentaltoothers,orforadministrativepurposes,andhaveusefullivesofmorethanoneaccountingyear.AfixedassetisrecognizedonlywhenitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthecostoftheassetcanbemeasuredreliably.Fixedassetsareinitiallymeasuredatcost.Uponbeingrestructuredintoastockcompany,thefixedassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.SubsequentexpendituresincurredforthefixedassetareincludedinthecostofthefixedassetifitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably.Meanwhilethecarryingamountofthereplacedpartisderecognized.Othersubsequentexpendituresarerecognizedinprofitorlossfortheperiodinwhichtheyareincurred.Afixedassetisdepreciatedoveritsusefullifeusingthestraight-linemethodstartingfromthemonthsubsequenttotheoneinwhichitisreadyforintendeduse.Thedepreciationlife,estimatednetresidualvaluerateandannualdepreciationrateofeachcategoryoffixedassetsareasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Category

CategoryDepreciationlife(year)Residualvaluerate(%)Annualdepreciationrate(%)
Portandterminalfacilities5-505.001.90-19.00
Buildingsandstructures5-305.001.90-19.00
Machineryandequipment,furnitureandfixtureandotherequipment3-205.004.75-31.67
Motorvehiclesandcargoships5-255.003.80-19.00

EstimatednetresidualvalueofafixedassetistheestimatedamountthattheGroupwouldcurrentlyobtainfromdisposaloftheasset,afterdeductingtheestimatedcostsofdisposal,iftheassetwerealreadyoftheageandintheconditionexpectedattheendofitsusefullife.Ifafixedassetisupondisposalornofutureeconomicbenefitsareexpectedtobegeneratedfromitsuseordisposal,thefixedassetisderecognized.Whenafixedassetissold,transferred,retiredordamaged,theamountofanyproceedsondisposaloftheassetnetofthecarryingamountandrelatedtaxesisrecognizedinprofitorlossfortheperiod.TheGroupreviewstheusefullifeandestimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastonceateachfinancialyear-end,andaccountsforanychangeasachangeinaccountingestimates.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

18.ConstructioninprogressConstructioninprogressismeasuredatitsactualcosts.Theactualcostsincludevariousconstructionexpendituresduringtheconstructionperiod,borrowingcostscapitalizedbeforeitisreadyforintendeduseandotherrelevantcosts.Constructioninprogressisnotdepreciated.Constructioninprogressisaccountedforbycategoriesofprojectsinitiated,andistransferredtoafixedassetwhenitisreadyforintendeduse.Thecriteriaforjudgingtheintendeduseshallbeoneofthefollowing:

(1)Thephysicalconstruction(includinginstallation)offixedassetshasbeenfullyor

substantiallycompleted;

(2)Thetrialproductionortrialoperationhasbeencarriedoutandtheresultsofwhich

indicatethattheassetiscapableofnormaloperationorproducingqualifiedproductsonastablebasis,ortheresultsofwhichindicatethatitiscapableofnormalfunctioningoroperation;

(3)Thefixedassetsandintangibleassetsacquiredandconstructedhavemetthedesignor

contractualrequirementsorarebasicallyincompliancewiththedesignorcontractualrequirements.

19.BorrowingcostsBorrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassetarecapitalizedwhenexpendituresforsuchassetandborrowingcostsareincurredandactivitiesrelatingtotheacquisition,constructionorproductionoftheassetthatarenecessarytopreparetheassetforitsintendeduseorsalehavecommenced.Capitalizationofborrowingcostsceaseswhenthequalifyingassetbeingacquired,constructedorproducedbecomesreadyforitsintendeduseorsale.Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetisinterruptedabnormallyandwhentheinterruptionisforacontinuousperiodofmorethan3months.Capitalizationissuspendeduntiltheacquisition,constructionorproductionoftheassetisresumed.Otherborrowingcostsarerecognizedasanexpenseintheperiodinwhichtheyareincurred.Wherefundsareborrowedunderaspecific-purposeborrowing,theamountofinteresttobecapitalizedistheactualinterestexpenseincurredonthatborrowingfortheperiodlessanybankinterestearnedfromdepositingtheborrowedfundsbeforebeingusedontheassetoranyinvestmentincomeonthetemporaryinvestmentofthosefunds.Wherefundsareborrowedundergeneral-purposeborrowings,theGroupdeterminestheamountofinteresttobecapitalizedonsuchborrowingsbyapplyingacapitalizationratetotheweightedaverageoftheexcessofcumulativeexpendituresontheassetovertheamountsofspecific-purposeborrowings.Thecapitalizationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Duringthecapitalizationperiod,exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencyareallcapitalized.Exchangedifferencesinconnectionwithgeneral-purposeborrowingsarerecognizedinprofitorlossfortheperiodinwhichtheyareincurred.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

20.Intangibleassets

20.1Usefullifeandthebasisfordetermination,estimates,amortizationmethodorreview

proceduresIntangibleassetsincludelanduserights,terminaloperatingrightsandothers.Anintangibleassetismeasuredinitiallyatcost.Uponbeingrestructuredintoastockcompany,theintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Exceptforterminaloperatingrights,whenanintangibleassetwithafiniteusefullifeisavailableforuse,itsoriginalcostisamortizedoveritsestimatedusefullife.Theterminaloperatingrightsundertheoutputmethodareamortizedoverperiodsaccordingtotheratiooftheestimatedminimumguaranteedthroughputtotheestimatedminimumguaranteedtotalthroughputduringtheoperationperiod.Whentheestimatedminimumguaranteedthroughputcannotbemeasuredreliably,thestraight-linemethodwillbeusedforamortization.Anintangibleassetwithindefiniteusefullifewillnotbeamortized.Theamortizationmethod,usefullifeandestimatednetresidualvaluerateofeachcategoryofintangibleassetsareasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.Category

CategoryAmortizationmethodUsefullife(year)Residualvalue(%)
LanduserightsStraight-linemethodFromthedateofthelandtransfer,itisamortizedusingthestraight-linemethodoverthelandtransferperiod-
TerminaloperatingrightOutput/Straight-linemethodOutputmethod-itisamortizedoverperiodsaccordingtotheratiooftheestimatedminimumguaranteedthroughputtotheestimatedminimumguaranteedtotalthroughput;straight-linemethod-itisamortizedusingthestraight-linemethodovertheshortestoftheestimatedusefullife,thebeneficialperiodspecifiedinthecontractandtheeffectivelifeasdefinedbylaw-
OthersStraight-linemethodItisamortizedusingthestraight-linemethodovertheshortestoftheestimatedusefullife,thebeneficialperiodspecifiedinthecontractandtheeffectivelifeasdefinedbylaw-

Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortizationmethodattheendoftheyear,andmakesadjustmentswhennecessary.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

20.Intangibleassets-continued

20.2ScopeofR&DexpenditureandmethodforaccountingtreatmentExpenditureduringtheresearchphaseisrecognizedinprofitorlossfortheperiodinwhichitisincurred.Expenditureduringthedevelopmentphasethatmeetsallofthefollowingconditionsatthesametimeisrecognizedasintangibleasset.Expenditureduringdevelopmentphasethatdoesnotmeetthefollowingconditionsisrecognizedinprofitorlossfortheperiod:

(1)itistechnicallyfeasibletocompletetheintangibleassetsothatitwillbeavailableforuse

orsale.

(2)theGrouphastheintentiontocompletetheintangibleassetanduseorsellit.

(3)theGroupcandemonstratethewaysinwhichtheintangibleassetwillgenerateeconomic

benefits,includingtheevidenceoftheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset.

(4)theavailabilityofadequatetechnical,financialandotherresourcestocompletethe

developmentandtheabilitytouseorselltheintangibleasset.

(5)theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbe

reliablymeasured.Iftheexpenditurescannotbedistinguishedbetweentheresearchphaseanddevelopmentphase,theGrouprecognizesalloftheminprofitorlossfortheyear.Thecostsofintangibleassetsgeneratedbytheinternalresearchonlyincludethetotalexpenditureincurredfortheperiodfromthetimepointofcapitalizationtothetimepointwhentheintangibleassetsarereadyforintendeduse.Fortheidenticalintangibleasset,theexpendituresrecordedasexpensesbeforetheyqualifyforcapitalizationduringthedevelopmentprocessarenotadjusted.TheGroupclassifiestheexpendituresonaninternalresearchanddevelopmentprojectintoexpendituresintheresearchphaseandexpendituresinthedevelopmentphase.ThescopeofR&DexpendituresrefertothosedirectlyrelatedtotheR&Dactivities,includingwages,salaries,andwelfareexpensesofpersonneldirectlyengagedinR&Dactivities,materialsdirectlyconsumedinR&Dactivities,depreciationexpensesforinstrumentsandequipmentusedinR&Dactivities,travel,transportation,andcommunicationexpensesrequiredforresearchandexperimentaldevelopment,etc.Technicalfeasibilityandeconomicviabilitystudiesareadoptedasspecificcriteriaforclassifyingtheresearchanddevelopmentphasesoncesuchstudieshavebeenevaluatedandapproved.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

21.Impairmentoflong-termassetsTheGroupassessesatthebalancesheetdatewhetherthereisanyindicationthatlong-termequityinvestments,investmentpropertiesmeasuredatcostmodel,fixedassets,constructioninprogress,right-of-useassets,intangibleassetswithafiniteusefullifeandassetsrelatedtocontractcostsmaybeimpaired.Ifthereisanyindicationthatsuchassetsmaybeimpaired,recoverableamountsareestimatedforsuchassets.Intangibleassetswithindefiniteusefullifeandintangibleassetsnotyetavailableforusearetestedforimpairmentannually,irrespectiveofwhetherthereisanyindicationthattheassetsmaybeimpaired.Recoverableamountisestimatedonanindividualbasis.Ifitisnotpracticaltoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheassetgrouptowhichtheassetbelongswillbeestimated.Therecoverableamountofanassetisthehigherofitsfairvaluelesscostsofdisposalandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.Iftherecoverableamountofanassetoranassetgroupislessthanitscarryingamount,thedeficitisaccountedforasanimpairmentlossandisrecognizedinprofitorloss.Goodwillistestedforimpairmentatleastattheendofeachyear.Forthepurposeofimpairmenttesting,goodwillisconsideredtogetherwiththerelatedassetsgroup(s)orportfolioofassetsgroup(s),i.e.,goodwillisreasonablyallocatedtotherelatedassetsgroup(s)orportfolioofassetsgroup(s)expectedtobenefitfromthesynergiesofthecombination.Animpairmentlossisrecognisediftherecoverableamountoftheassetsgroup(s)orportfolioofassetsgroup(s)(includinggoodwill)islessthanitscarryingamount.Theimpairmentlossisfirstlyallocatedtoreducethecarryingamountofanygoodwillallocatedtosuchassetsgroup(s)orportfolioofassetsgroup(s),andthentotheotherassetsofthegrouppro-rataonthebasisofthecarryingamountofeachasset(otherthangoodwill)inthegroup.Oncetheimpairmentlossofabove-mentionedassetsisrecognized,itshallnotbereversedinanysubsequentperiod.

22.Long-termprepaidexpensesLong-termprepaidexpensesrepresentexpensesincurredthatshouldbeborneandamortizedoverthecurrentandsubsequentperiods(togetherofmorethanoneyear).Long-termprepaidexpensesareamortizedusingthestraight-linemethodovertheexpectedperiodsinwhichbenefitsarederived.

23.ContractliabilitiesContractliabilitiesrefertotheGroup'sobligationtotransfergoodsorservicestoacustomerforconsiderationreceivedorreceivablefromthecustomer.Thecontractassetsandcontractliabilitiesunderthesamecontractarepresentedonanetbasis.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

24.Employeebenefits

24.1Short-termemployeebenefitsShort-termbenefitsrefertotheemployeebenefitsthattheGroupisrequiredtomakefullpaymentswithin12monthsaftertheannualreportingperiodduringwhichrelevantservicesareprovidedbytheemployees,exceptthepost-employmentbenefitsandterminationbenefits.Specifically,theshort-termbenefitsinclude:employeesalaries,bonuses,allowancesandsubsidies,employeebenefits,socialinsurancecontributionssuchasthemedicalinsuranceandtheworkinjuryinsurance,housingfunds,tradeunionfundsandemployeeeducationfunds,short-termpaidabsence,short-termprofitsharingplan,non-monetarywelfareandothershort-termbenefits.Short-termemployeebenefitspayablearerecognizedasliabilities,withacorrespondingchargetoprofitorlossfortheperiodorinthecostsofrelevantassetsintheaccountingperiodinwhichemployeesprovideservicestotheGroup.StaffwelfareexpensesincurredbytheGrouparerecognizedinprofitorlossfortheperiodorthecostsofrelevantassetsbasedontheactuallyoccurredamountswhentheyactuallyoccurred.Non-monetarystaffwelfareexpensesaremeasuredatfairvalue.PaymentmadebytheGroupofsocialsecuritycontributionsforemployeessuchaspremiumsorcontributionsonmedicalinsurance,workinjuryinsuranceandmaternityinsurance,etc.andpaymentsofhousingfunds,aswellasunionrunningcostsandemployeeeducationcostsprovidedinaccordancewithrelevantrequirements,arecalculatedaccordingtoprescribedbasesandpercentagesindeterminingtheamountofemployeebenefitsandrecognizedasrelevantliabilities,withacorrespondingchargetoprofitorlossfortheperiodorthecostsofrelevantassetsintheaccountingperiodinwhichemployeesprovideservices.

24.2Post-employmentbenefitsPost-employmentbenefitsrefertotherewardsandbenefitsofvariousformsprovidedbytheGroupaftertheemployeeshaveretiredorterminatedthelaborrelationshipwiththeenterprisefortheservicesrenderedbytheemployees,excepttheshort-termbenefitsandtheterminationbenefits.Thepost-employmentbenefitsconsistofthepensioninsurance,theannuity,theunemploymentinsuranceandotherpost-employmentbenefits.Post-employmentbenefitplansareclassifiedbytheGroupintodefinedcontributionplansanddefinedbenefitplans.Thepost-employmentbenefitplanreferstotheagreementstheGroupenteredintowiththeemployeesonthepost-employmentbenefitsortheregulationsormeasuresestablishedbytheGroupforprovisionsofthepost-employeebenefits,amongwhichthedefinedcontributionplansrefertothepost-employmentbenefitplanunderwhichtheGroupshallnolongerundertakeanyobligationsofpaymentsafterpayingfixedexpensestoindependentfunds;thedefinedbenefitplansrefertothepost-employmentbenefitplansotherthanthedefinedcontributionplans.DuringtheaccountingperiodinwhichemployeesrenderservicestotheGroup,theamountspayablecalculatedbasedonthedefinedcontributionplansarerecognizedasliabilitiesandincludedinprofitorlossfortheperiodorcostsofrelatedassets.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

24.Employeebenefits-continued

24.2Post-employmentbenefits-continuedFordefinedbenefitplans,theGroupattributesthewelfareobligationsarisingfromthedefinedbenefitplanstotheperiodinwhichemployeesprovideservicestotheGroupaccordingtotheformuladeterminedbasedontheprojectedcumulativebenefitunitmethod,andincludestheminprofitorlossfortheperiodorcostsofrelatedassets.Definedbenefitcostsarecategorizedasfollows:

?Servicecost(includingcurrentservicecost,pastservicecost,aswellasgainsandlosseson

settlements);?Netinterestofnetliabilitiesorassetsofdefinedbenefitplans(includinginterestincomeofplannedassets,interestexpensesofdefinedbenefitplanliabilitiesandeffectofassetceiling);and?Changesarisingfromremeasurementofnetliabilitiesornetassetsofdefinedbenefitplans.Servicecostsandnetinterestofnetliabilitiesandnetassetsofdefinedbenefitplansarerecognizedinprofitorlossfortheperiodorcostsofrelatedassets.Remeasurementofthenetdefinedbenefitliabilities(assets)(includingactuarialgainsandlosses,thereturnonplannedassets,excludingamountsincludedinnetinterestonnetdefinedbenefitliabilities(assets),andanychangesintheeffectoftheassetceiling,excludingamountsincludedinnetinterestonnetdefinedbenefitliabilities(assets))arerecognizedinothercomprehensiveincome.Thedeficitorsurplusresultingfromthepresentvalueofthedefinedbenefitplanobligationslessthefairvalueofthedefinedbenefitplanassetsisrecognizedasanetdefinedbenefitplanliabilityornetasset.

24.3TerminationbenefitsTerminationbenefitsrefertothecompensationstheGrouppaytotheemployeesforterminatingtheemploymentrelationshipwithemployeesbeforetheexpiryoftheemploymentcontractsorencouragingemployeestoacceptvoluntaryredundancy.WhentheGroupprovidesterminationbenefitstoemployees,employeebenefitliabilitiesarerecognizedforterminationbenefits,withacorrespondingchargetoprofitorlossfortheperiodattheearlierof:(1)whentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseoftheterminationplanoracurtailmentproposal;and(2)whentheGrouprecognizescostsorexpensesrelatedtorestructuringthatinvolvesthepaymentofterminationbenefits.

24.4Otherlong-termemployeebenefitsOtherlong-termemployeebenefitsrefertoallemployeebenefitsexceptforshort-termbenefits,post-employmentbenefits,andterminationbenefits.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

24.Employeebenefits-continued

24.4Otherlong-termemployeebenefits-continuedOtherlong-termemployeebenefitsthatqualifyasdefinedcontributionplansaretreatedinaccordancewiththerelevantprovisionsofthedefinedcontributionplansmentionedabove,exceptthatthenetliabilityornetassetforotherlong-termemployeebenefitsisrecognizedandmeasuredinaccordancewiththerelevantprovisionsofthedefinedbenefitplans.Attheendofthereportingperiod,employeecompensationcostsarisingfromotherlong-termemployeebenefitsarerecognizedasthreecomponents:servicecost,netinterestonnetliabilityornetassetforotherlong-termemployeebenefits,andchangesresultingfromtheremeasurementofthenetliabilityornetassetforotherlong-termemployeebenefits.Thetotalnetamountoftheseitemsisincludedinprofitorlossfortheperiodorinthecostsofrelatedassets.TheGroupprovidesinternalretirementbenefitstoemployeesacceptingtheinternalretirementarrangements.Internalretirementbenefitsrefertothepaymentsofsalariesandsocialsecuritycontributionsforemployeeswhoreachtheretirementageregulatedbythecountryandareapprovedtoquitthejobvoluntarily.Forinternalretirementbenefits,theinternalretirementbenefitstheGroupisexpectedtopayduringtheperiodfromthedatewhenemployeesstopprovidingservicestothedateofnormalretirementarerecognizedasliabilitiesatthepresentvalueandincludedinprofitorlossfortheperiodwhenrelevantrecognitionrequirementsoftheinternalretirementbenefitsaremet.

25.ProvisionsProvisionsarerecognizedwhentheGrouphasapresentobligationrelatedtoacontingency,itisprobablethatanoutflowofeconomicbenefitswillberequiredtosettletheobligation,andtheamountoftheobligationcanbemeasuredreliably.Theamountrecognizedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatthebalancesheetdate,takingintoaccountfactorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoney.Wheretheeffectofthetimevalueofmoneyismaterial,theamountoftheprovisionisdeterminedbydiscountingtherelatedfuturecashoutflows.Whereallorsomeoftheexpenditurerequiredtosettleaprovisionisexpectedtobereimbursedbyathirdparty,thereimbursementisrecognizedasaseparateassetonlywhenitisvirtuallycertainthatreimbursementwillbereceived,andtheamountofreimbursementrecognizeddoesnotexceedthecarryingamountoftheprovision.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

26.Share-basedpaymentsAshare-basedpaymentisatransactionwhichtheGroupgrantsequityinstruments,inreturnforservicesrenderedbyemployeesorotherparties.TheGroup'sshare-basedpaymentsincludeequity-settledshare-basedpayments.Equity-settledshare-basedpaymentsinexchangeforservicesrenderedbyemployeesaremeasuredatfairvalueoftheequityinstrumentsgrantedtoemployeesatthegrantdate.Suchamountisrecognizedasrelatedcostsorexpensesonastraight-linebasisoverthevestingperiod,basedonthebestestimateofthenumberofequityinstrumentsexpectedtovest/asrelatedcostsorexpensesatthegrantdate,iftheequityinstrumentscouldbevestedimmediately,withacorrespondingincreaseincapitalreserve.

27.Preferredstock,perpetualbondsandotherfinancialinstrumentsTheconsiderationreceivedbytheGroupfortheissuanceofequityinstrumentsisincludedinshareholders'equityafterdeductingtransactioncosts.RepurchasetheconsiderationandtransactioncostspaidbytheGroup'sequityinstrumentstoreduceshareholders'equity.TheGroupclassifiesfinancialinstruments,ortheircomponents,asfinancialliabilitiesorequityinstrumentsatinitialrecognitionbasedonthecontractualtermsoftheissuedperpetualbondsandtheirreflectedeconomicsubstance,combinedwiththedefinitionsoffinancialliabilitiesandequityinstruments.Forfinancialinstrumentssuchasperpetualbondsclassifiedasequityinstruments,interestexpenseordividend(dividend)distributionsaretreatedasprofitdistributionsoftheGroup,andtheirrepurchases,write-offs,etc.,aretreatedaschangesinequity,andrelatedtransactioncostsaredeductedfromequity.

28.Revenuerecognition

28.1Disclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementby

typeofbusinessTheGroup'srevenueismainlyfromportbusiness,bondedlogisticsbusinessandotherbusinesses.TheGrouprecognizesrevenuebasedonthetransactionpriceallocatedtotheperformanceobligationwhentheGroupsatisfiesaperformanceobligationinthecontract,namely,whenthecustomerobtainscontroloverrelevantgoodsorservices.AperformanceobligationisacommitmentthattheGrouptransfersadistinctgoodsorservicetoacustomerinthecontract.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

28.Revenuerecognition-continued

28.1Disclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementby

typeofbusiness-continuedItisaperformanceobligationsatisfiedduringaperiodoftimeandtheGrouprecognizesrevenueduringaperiodoftimeaccordingtotheprogressofperformanceifoneofthefollowingconditionsismet:(i)thecustomerobtainsandconsumeseconomicbenefitsatthesametimeoftheGroup'sperformance;(ii)thecustomerisabletocontrolgoodsorservicesinprogressduringtheGroup'sperformance;(iii)goodsorservicesgeneratedduringtheGroup'sperformancehaveirreplaceableutilization,andtheGroupisentitledtocollectamountsofcumulativeperformancepartwhichhavebeendoneuptonow.Otherwise,revenueisrecognizedatapointintimewhenthecustomerobtainscontrolovertherelevantgoodsorservices.TheGroupadoptsoutputmethod,i.e.,thevalueofgoodsorservicestransferredtocustomerstodeterminetheappropriateprogressofperformance.Wheretheprogresscannotbedeterminedreasonably,therevenueisrecognizedbasedontheamountofcostthatisexpectedtobecompensatedbasedonthecostalreadyincurred,untiltheprogressofperformanceisreasonablydetermined.ThetransactionpriceistheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdpartiesandamountsexpectedtoberefundedtoacustomer.Indeterminingthetransactionprice,theGroupshouldconsidertheeffectsofvariableconsideration,significantfinancingcomponentsinthecontract,non-cashconsiderationandconsiderationpayabletocustomers.Iftherearetwoormoreofperformanceobligationsincludedinthecontract,attheinceptionofthecontract,theGroupallocatesthetransactionpricetoeachsingleperformanceobligationbasedontheproportionofstand-alonesellingpriceofgoodsorservicespromisedineachstand-aloneperformanceobligation.However,ifthereisconclusiveevidenceindicatingthatthecontractdiscountorvariableconsiderationisonlyrelativewithoneormore(notthewhole)performanceobligationsinthecontract,theGroupwillallocatethecontractdiscountorvariableconsiderationtorelativeoneormoreperformanceobligations.Stand-alonesellingpricereferstothepriceofasinglesaleofgoodsorservices.Ifthestand-alonesellingpricecannotbeobserveddirectly,theGroupestimatesthestand-alonesellingpricethroughcomprehensiveconsiderationofallrelativeinformationthatcanbereasonablyacquiredandmaximumuseofobservableinputs.Incaseoftheexistenceofvariableconsideration(suchassalesdiscount)inthecontract,theGroupshalldeterminethebestestimateofvariableconsiderationbasedontheexpectedvalueorthemostprobablyoccurredamount.Thetransactionpriceincludingvariableconsiderationshallnotexceedtheamountofthecumulativelyrecognizedrevenuewhichisunlikelytobesignificantlyreversedwhenrelevantuncertaintyiseliminated.Ateachbalancesheetdate,theGroupre-estimatestheamountofvariableconsiderationwhichshouldbeincludedintransactionprice.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

28.Revenuerecognition-continued

28.1Disclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementby

typeofbusiness-continuedIfthecustomerpaysnon-cashconsideration,theGroupdeterminesthetransactionpricebasedonthefairvalueofthenon-cashconsideration.Ifthefairvalueofnon-cashconsiderationcannotbereasonablyestimated,theGroupshalldeterminethetransactionpriceindirectlybyreferencetothestand-alonesellingpriceofthegoodsorservicespromisedtotransfertothecustomer.Incaseoftheexistenceofasignificantfinancingcomponentinthecontract,theGroupshalldeterminethetransactionpriceontheassumptionthatthecustomerhaspaidtheamountpayablebycashwhenobtainingthecontroloverthegoodsorservices.Differencesbetweentransactionpriceandcontractconsiderationareamortizedusingeffectiveinterestmethodduringthecontractlife.Attheinceptionofthecontract,iftheperiodbetweenwhentheGrouptransfersapromisedgoodsorservicetoacustomerandwhenthecustomerpaysforthatgoodsorservicewillbeoneyearorless,theGroupwouldnotconsiderthesignificantcomponentinthecontract.TheGroupassesseswhetheritcontrolseachspecifiedgoodsorservicebeforethatgoodsorserviceistransferredtothecustomertodeterminewhethertheGroupisaprincipaloranagent.IftheGroupcontrolsthespecifiedgoodorservicebeforethatgoodorserviceistransferredtoacustomer,theGroupisaprincipalandrecognizesrevenueinthegrossamountofconsiderationreceivedorreceivable.Otherwise,theGroupisanagentandrecognizesrevenueintheamountofanyfeeorcommissiontowhichitexpectstobeentitled.ThefeeorcommissionisthenetamountofconsiderationthattheGroupretainsafterpayingtheotherpartytheconsiderationreceivedinexchangeforthegoodsorservicestobeprovidedbythatparty,orisdeterminedinaccordancewiththeestablishedcommissionamountorpercentage,etc.WheretheGroupreceivesreceiptsinadvancefromacustomerforsalesofgoodsorrenderingofservices,theamountisfirstrecognizedasaliabilityandthentransferredtorevenuewhentherelatedperformanceobligationhasbeensatisfied.WhentheGroup'sreceiptsinadvancearenotrequiredtoberefundedanditisprobablethatthecustomerwillwaiveallorpartofitscontractualrights,theGrouprecognizesthesaidamountsasrevenueonapro-ratabasisinaccordancewiththepatternofexerciseofthecustomer'scontractualrights,iftheGroupexpectstobeentitledtotheamountsrelatingtothecontractualrightswaivedbythecustomer;otherwise,theGroupreversestherelatedbalanceofthesaidliabilitiestorevenueonlywhenitishighlyunlikelythatthecustomerwillrequireperformanceoftheremainingperformanceobligations.Forportbusiness,therevenuefromthehandlingofcontainersandbulkcargosisrecognizedovertimebasedontheprogressofcompletedservices,andtherevenuefromthestorageofcontainersandbulkcargosisrecognizedonastraight-linebasisovertheperiodofstorage.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

28.Revenuerecognition-continued

28.1Disclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementby

typeofbusiness-continuedForbondedlogisticsbusiness,therevenueisrecognizedbasedontheprogressofservicesrendered,wheretheprogressofcompletedservicesisdeterminedbasedontheproportionofdaysonservicesprovidedtotheestimatedtotalnumberofservicedays.Asatthebalancesheetdate,theGrouphasre-estimatedtheprogressofcompletedbondedlogisticsservicesothatitreflectsthechangesinperformancestatus.

28.2Similaroperationsunderdifferentbusinessmodelswhichinvolvedifferentrevenue

recognitionandmeasurementmethodsTheGrouphasnosimilaroperationsunderdifferentbusinessmodelswhichinvolvedifferentrevenuerecognitionandmeasurementmethods.?

29.Contractcosts

29.1CostsofobtainingacontractFortheincrementalcostofobtainingthecontract(costthatwillnotoccurifthecontractisnotobtained)thatisexpectedtoberecoverable,itisrecognizedasanasset.Iftheamortizationperiodofsuchassetislessthanoneyear,itisrecognizedinprofitorlossfortheperiodwhenincurred.Otherexpensesincurredforobtainingthecontractisincludedinprofitorlossfortheperiodwhenincurred,exceptforthoseexplicitlyassumedbythecustomer.

29.2CoststofulfilacontractIfthecostsincurredinfulfillingacontractarenotwithinthescopeofanystandardsotherthanRevenueStandards,theGrouprecognizesanassetonlyifthosecostsmeetallofthefollowingcriteria:(1)thecostsrelatedirectlytoacontractortoananticipatedcontractthattheGroupcanspecificallyidentify;(2)thecostsenhanceresourcesoftheGroupthatwillbeusedinsatisfyingperformanceobligationsinthefuture;and(3)thecostsareexpectedtoberecovered.Theassetmentionedaboveshallbeamortizedonabasisthatisconsistentwiththerevenuerecognitionofthegoodsorservicestowhichtheassetrelatesandrecognizedinprofitorlossfortheperiod.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

29.Contractcosts-continued

29.3ImpairmentlossofassetsrelatedtocontractcostsIndeterminingtheimpairmentlossesofassetsrelatedtocontractcosts,theGroupfirstdeterminestheimpairmentlossesofotherassetsrelatedtocontractsrecognizedinaccordancewithotherASBE;then,forassetsrelatedtocontractcosts,ifthecarryingamountoftheassetsishigherthanthedifferencebetween:(1)theremainingconsiderationthattheGroupexpectstoobtainforthetransferofthegoodsorservicesrelatedtotheassets;and(2)theestimatedcoststobeincurredforthetransferoftherelatedgoodsorservices,anyexcessisprovidedforimpairmentandrecognizedasimpairmentlossofassets.Aftertheprovisionforimpairmentofassetsrelatedtocontractcostsismade,ifthefactorsofimpairmentinpreviousperiodschangesothatthedifferencebetweentheabovetwoishigherthanthecarryingamountoftheassets,theoriginalprovisionforimpairmentoftheassetsisreversedandrecognizedinprofitorlossfortheperiod,providedthatthecarryingamountoftheassetsafterthereversaldoesnotexceedthecarryingamountoftheassetsatthedateofreversalassumingnoprovisionforimpairmentwasmade.

30.GovernmentgrantsGovernmentgrantsaretransferofmonetaryassetsornon-monetaryassetsfromthegovernmenttotheGroupatnoconsideration.AgovernmentgrantisrecognizedonlywhentheGroupcancomplywiththeconditionsattachedtothegrantandtheGroupwillreceivethegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofanon-monetaryasset,itismeasuredatfairvalue.Ifthefairvaluecannotbereliablydetermined,itismeasuredatanominalamount.Agovernmentgrantmeasuredatanominalamountisrecognizedimmediatelyinprofitorlossfortheperiod.

30.1DeterminationbasisandaccountingtreatmentofgovernmentgrantrelatedtoassetsGovernmentgrantsoftheGroupmainlyincludegrantsforintelligentsystem,etc.,andthesegovernmentgrantsrelatetoassetsastheywillformlong-termassets.Agovernmentgrantrelatedtoanassetisrecognizedasdeferredincome,andevenlyamortizedtoprofitorlossovertheusefullifeoftherelatedasset.Agovernmentgrantmeasuredatanominalamountisrecognizedimmediatelyinprofitorlossinthecurrentperiod.Wheretherelevantassetissold,transferred,retiredordamagedpriortotheendofitsusefullife,therelatedundistributeddeferredincomeistransferredtoprofitorlossofthedisposalperiod.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

30.Governmentgrants-continued

30.2DeterminationbasisandaccountingtreatmentofgovernmentgrantrelatedtoincomeGovernmentgrantsoftheGroupmainlyincludegrantsforbusinessdevelopmentandspecializedoperations,etc.,andthesegovernmentgrantsrelatetoincomeastheywillnotformlong-termassets.TheGroupclassifiesgovernmentgrantsthataredifficulttobedistinguishedasgovernmentgrantsrelatedtoincomeaggregately.Foragovernmentgrantrelatedtoincome,ifthegrantisacompensationforrelatedexpensesorlossestobeincurredinsubsequentperiods,thegrantisrecognizedasdeferredincomeandrecognizedinprofitorlossfortheperiodinwhichtherelatedcostsorlossesarerecognized;Ifthegrantisacompensationforrelatedexpensesorlossesalreadyincurred,thegrantisrecognizedimmediatelyinprofitorloss.AgovernmentgrantrelatedtotheGroup'sdailyactivitiesisrecognizedinotherincomeorchargedagainstrelatedcostsbasedonthenatureofeconomicactivities;agovernmentgrantnotrelatedtotheGroup'sdailyactivitiesisrecognizedinnon-operatingincome.

31.IncometaxTheincometaxexpensesincludecurrentincometaxanddeferredincometax.

31.1CurrentincometaxAtthebalancesheetdate,currentincometaxliabilities(orassets)forthecurrentandpriorperiodsaremeasuredattheamountexpectedtobepaid(orrecovered)accordingtotherequirementsoftaxlaws.

31.2DeferredtaxassetsanddeferredtaxliabilitiesFortemporarydifferencesbetweenthecarryingamountsofcertainassetsorliabilitiesandtheirtaxbase,orbetweenthenilcarryingamountofthoseitemsthatarenotrecognizedasassetsorliabilitiesandtheirtaxbasethatcanbedeterminedaccordingtotaxlaws,deferredtaxassetsandliabilitiesarerecognizedusingthebalancesheetliabilitymethod.Deferredtaxliabilitiesaregenerallyrecognizedforalltaxabletemporarydifferences.Deferredtaxassetsfordeductibletemporarydifferencesarerecognizedtotheextentthatitisprobablethattaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized.However,fortemporarydifferencesassociatedwiththeinitialrecognitionofgoodwillandtheinitialrecognitionofanassetorliabilityarisingfromatransaction,whichisnotabusinesscombinationthataffectsneithertheaccountingprofitnortaxableprofits(ordeductiblelosses)andwillnotresultintaxabletemporarydifferencesanddeductibletemporarydifferencesinequivalentamountsatthetimeoftransaction,nodeferredtaxassetorliabilityisrecognized.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

31.Deferredtaxassets/deferredtaxliabilities-continued

31.2Deferredtaxassetsanddeferredtaxliabilities-continuedFordeductiblelossesandtaxcreditsthatcanbecarriedforward,deferredtaxassetsarerecognizedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductiblelossesandtaxcreditscanbeutilized.Deferredtaxliabilitiesarerecognizedfortaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandjointventures,exceptwheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifferencesanditisprobablethatthetemporarydifferenceswillnotbereversedintheforeseeablefuture.Deferredtaxassetsarisingfromdeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandjointventuresarerecognizedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilizedandtheyareexpectedtobereversedintheforeseeablefuture.Atthebalancesheetdate,deferredtaxassetsandliabilitiesaremeasuredatthetaxratesapplicableintheperiodinwhichtheassetisrealizedortheliabilityissettledaccordingtotaxlaws.Currentanddeferredtaxexpensesorincomearerecognizedinprofitorlossfortheperiod,exceptwhentheyarisefromtransactionsoreventsthataredirectlyrecognizedinothercomprehensiveincomeorshareholders'equity,inwhichcasetheyarerecognizedinothercomprehensiveincomeorshareholders'equity,andwhentheyarisefrombusinesscombinations,inwhichcasetheyadjustthecarryingamountofgoodwill.Atthebalancesheetdate,thecarryingamountofdeferredtaxassetsisreviewedandreducedifitisnolongerprobablethatsufficienttaxableprofitswillbeavailableinthefuturetoallowthebenefitofdeferredtaxassetstobeutilized.Anysuchreductioninamountisreversedwhenitbecomesprobablethatsufficienttaxableprofitswillbeavailable.

31.3IncometaxoffsettingWhentheGrouphasalegalrighttosettleonanetbasisandintendseithertosettleonanetbasisortorealizetheassetsandsettletheliabilitiessimultaneously,currenttaxassetsandcurrenttaxliabilitiesareoffsetandpresentedonanetbasis.WhentheGrouphasalegalrighttosettlecurrenttaxassetsandliabilitiesonanetbasis,anddeferredtaxassetsanddeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxassetsandliabilitiesonanetbasisortorealizetheassetsandliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxassetsorliabilitiesareexpectedtobereversed,deferredtaxassetsanddeferredtaxliabilitiesareoffsetandpresentedonanetbasis.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

32.LeasesAleaseisacontractinwhichthelessor,foracertainperiodoftime,givesthelesseetherighttousetheassetstoobtainaconsideration.Forcontractsenteredinto,theGroupassesseswhetherthecontractis,orcontains,aleaseatthecommencementdate.Suchcontractwillnotbereassessedunlessthetermsandconditionsofthecontractaresubsequentlychanged.

32.1TheGroupaslessee

32.1.1SeparatingcomponentsofaleaseForacontractthatcontainsoneormoreleasecomponentsornon-leasecomponents,theGroupseparateseachindividualleaseandnon-leasecomponentandallocatesthecontractconsiderationintherelativeproportionofthesumoftheindividualpriceofeachleasecomponentandtheindividualpriceofthenon-leasecomponent.

32.1.2Right-of-useassetsExceptforshort-termleasesandleasesoflow-valueassets,theGrouprecognizestheright-of-useassetsoftheleasesatthecommencementdate.ThecommencementdateoftheleaseisthedatefromwhichthelessorprovidestheleasedassetstomakethemavailableforusebytheGroup.Right-of-useassetsareinitiallymeasuredatcost.Thecostincludes:

?theamountoftheinitialmeasurementoftheleaseliabilities.?anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentives.?anyinitialdirectcostsincurredbytheGroup.?anestimateofcoststobeincurredbytheGroupindismantlingandremovingtheunderlying

asset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.Right-of-useassetsaredepreciatedbytheGroupinaccordancewiththeASBENo.4FixedAssets.IftheGroupisreasonablycertain,thattheleasewilltransferownershipoftheunderlyingassettotheGroupbytheendoftheleaseterm,theright-of-useassetsaredepreciatedfromthecommencementdatetotheendoftheusefullifeoftheunderlyingasset.Otherwise,theright-of-useassetsaredepreciatedfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetsortheendoftheleaseterm.TheGroupappliesASBENo.8ImpairmentofAssets,todeterminewhethertheright-of-useassetsareimpairedandtoaccountforanyimpairmentlossidentified.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

32.Leases-continued

32.1TheGroupaslessee-continued

32.1.3LeaseliabilitiesExceptforshort-termleasesandleasesoflow-valueassets,theGroupinitiallymeasuresleaseliabilitiesatthepresentvalueoftheoutstandingleasepaymentsatthecommencementdate.Incalculatingthepresentvalueoftheleasepayments,theGroupusestheimplicitinterestrateoftheleaseasthediscountrate.Ifitisnotpossibletodeterminetheimplicitinterestrateofthelease,theincrementalborrowingrateshallbeapplied.TheleasepaymentscomprisethefollowingpaymentsbytheGroupfortherighttousetheunderlyingassetduringtheleaseterm:

?fixedpayments(includingin-substancefixedpayments),lessanyleaseincentives.?variableleasepaymentsthatdependonanindexorarate.?theexercisepriceofapurchaseoptioniftheGroupisreasonablycertaintoexercisethat

option.?paymentsforterminatingthelease,iftheleasetermreflectstheGroupexercisinganoption

toterminatethelease.?amountsexpectedtobepayablebytheGroupunderresidualvalueguarantees.Variableleasepaymentsthatdependonanindexorarate,areinitiallymeasuredusingtheindexorrateasatthecommencementdate.Variableleasepaymentsnotincludedinthemeasurementoftheleaseliabilities,arerecognizedinprofitorloss,orinthecostofrelevantassets,intheperiodofthosepayments.Afterthecommencementdate,interestexpensesontheleaseliabilitiesineachperiodduringtheleasetermiscalculatedbyaconstantperiodicrateofinterest,andincludedinprofitorlossorchargedtocostofrelatedassets.Afterthecommencementdate,theGroupshallremeasuretheleaseliabilitiesandmakecorrespondingadjustmentstotherelatedright-of-useassetsinthefollowingcircumstances.Ifthecarryingamountoftheright-of-useassetsisreducedtozeroandthereisafurtherreductioninthemeasurementoftheleaseliabilities,theGroupshallrecognizethedifferenceinprofitorloss:

?wherethereisachangeintheleaseterm,orintheassessmentofanoptiontopurchasethe

underlyingasset,theGroupremeasurestheleaseliabilities,onthebasisoftherevisedlease

termandthereviseddiscountrate;

?wherethereisachangeintheamountsexpectedtobepayableunderaresidualvalue

guarantee,orinfutureleasepaymentsresultingfromachangeinanindexorarateusedto

determinethosepayments,theGroupremeasurestheleaseliabilities,onthebasisofthe

revisedleasepaymentsandtheunchangeddiscountrate,unlessthechangeinthelease

paymentsresultsfromachangeinfloatinginterestrates,inwhichcaseareviseddiscount

rateisappliedtocalculatethepresentvalue.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

32.Leases-continued

32.1TheGroupaslessee-continued

32.1.4Short-termleasesandleasesoflow-valueassetsTheGroupelectsnottorecognizeright-of-useassetsorleaseliabilitiesforshort-termleasesandleasesoflow-valueassets,i.e.,portandterminalfacilities,buildings,machineryandequipment,furniture,fixtureandotherequipment,motorvehiclesandcargoshipsandothers.Ashort-termleaseisaleasethat,atthecommencementdate,hasaleasetermof12monthsorlessanddoesnotcontainacalloption.Aleaseoflow-valueassetsisaleasethat,thevalueoftheunderlyingassetislessthanRMB50,000whenitisnew.Forshort-termleasesandleasesoflow-valueassets,theGrouprecognizestheleasepaymentsinprofitorloss,orinthecostofrelatedassetsonastraight-linebasisovereachperiodwithintheleaseterm.

32.1.5LeasemodificationsAleasemodificationshouldbeaccountedforasaseparateleaseifbothofthefollowingapply:

?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets.?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alone

pricefortheincreaseinscopeandanyappropriateadjustmentstothatstand-alonepriceaccordingtothecircumstancesoftheparticularcontract.Foraleasemedicationthatisnotaccountedforasaseparatelease,attheeffectivedateoftheleasemodification,theGroupshouldallocatetheconsiderationinthemodifiedcontract,determinetheleasetermofthemodifiedleaseandremeasuretheleaseliabilitiesbasedonthepresentvalueofthechangedleasepaymentsandthereviseddiscountrate.Forleasemodificationsthatdecreasethescopeoftheleaseorshortenthetermofthelease,theGroupshoulddecreasethecarryingamountoftheright-of-useassetswithanygainorlossrelatingtothepartialorfullterminationoftheleaserecognizedinprofitorloss.Forre-measurementofleaseliabilitiesduetootherleasemodifications,acorrespondingadjustmentismadetothecarryingamountoftheright-of-useassets.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

32.Leases-continued

32.1TheGroupaslessee-continued

32.1.6SaleandleasebacktransactionsTheGroupasseller-lesseeTheGroupappliestherequirementsofRevenueStandardtodeterminewhetherthetransferofanassetisaccountedforasasaleofthatasset.Ifthetransferofanassetdoesnotconstituteasale,theGroupshallcontinuetorecognizethetransferredassets,recognizeafinancialliabilityequaltothetransferproceedsandaccountsforsuchfinancialliabilityinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22-FinancialInstruments:RecognitionandMeasurement.Ifthetransferofanassetisasale,theGroupshallmeasuretheright-of-useassetsarisingfromtheleasebackattheproportionofthepreviouscarryingamountoftheassetthatrelatestotherightofuse,andrecognizeanygainorlossforrightstransferredtothelessoronly.

32.2TheGroupaslessor

32.2.1SeparatingcomponentsofaleaseForacontractthatcontainsleasecomponentsandnon-leasecomponents,theGroupallocatesthecontractconsiderationinaccordancewiththeRevenueStandardsonallocationoftransactionprices,basedontherespectiveindividualpricesoftheleasecomponentsandthenon-leasecomponents.

32.2.2ClassificationofleasesLeasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownership.Allotherleasesareclassifiedasoperatingleases.

32.2.2.1TheGroupaslessorunderoperatingleasesTheGrouprecognizesleasereceiptsfromoperatingleasesasrentalincomeusingastraight-linemethodovertherespectiveperiodsoftheleaseterm.TheGroup'sinitialdirectcostsincurredinconnectionwithoperatingleasesarecapitalizedwhenthecostsincurred,andareallocatedtoprofitorlossfortheperiodovertheleasetermonthesamebasisastherecognitionofrentalincome.VariableleasereceiptsacquiredbytheGroupinconnectionwithoperatingleasesthatarenotincludedintheleasereceiptsarerecognizedinprofitorlossfortheperiodwhentheyareactuallyincurred.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

32.Leases-continued

32.2TheGroupaslessor-continued

32.2.2Classificationofleases-continued

32.2.2.2TheGroupaslessorunderfinanceleasesAtthecommencementdate,theGrouprecognizesafinanceleasereceivableattheamountequaltothenetleaseinvestmentwithassetsunderfinanceleasederecognized.Thenetleaseinvestmentisthesumofanyunguaranteedresidualvalueandthepresentvalueoftheleasereceiptsovertheleasetermdiscountedattheinterestrateimplicitinlease.TheleasereceivablecomprisesthefollowingpaymentscollectedbytheGroupfromthelesseeforthetransferoftherighttousetheunderlyingassetsduringtheleaseterm:

?fixedpayments(includingin-substancefixedpayments)paidbythelessee,lessanyleaseincentives.?variableleasepaymentsthatdependonanindexorarate.?theexercisepriceofapurchaseoption,providedthatitisreasonablydeterminedthatthe

lesseewillexercisetheoption.?paymentsforterminatingthelease,providedthattheleasetermreflectsthatthelesseewill

exercisetheoptiontoterminatethelease;?residualvalueofguaranteeprovidedtotheGroupbythelessee,apartyrelatedtothelessee

andanindependentthirdpartywiththefinancialabilitytofulfiltheguaranteeobligations.Variableleasereceiptsnotincludedinthenetleaseinvestmentarerecognizedinprofitorlosswhentheyareactuallyincurred.InterestincomeforeachperiodovertheleasetermiscalculatedandrecognizedbytheGroupatafixedperiodicrate.

32.2.3SubleasesAsthelessorofasublease,theGroupaccountsfortheoriginalleasecontractandthesubleasecontractonaseparatebasis.TheGroupclassifiesthesubleasesbasedontheright-of-useassetsgeneratingfromtheoriginalleaseratherthantheunderlyingassetsoftheoriginallease.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

32.Leases-continued

32.2TheGroupaslessor-continued

32.2.4LeasemodificationsTheGroupaccountsforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyleaseadvancesorreceivablesrelatingtotheoriginalleaseastheleasereceiptsforthenewlease.Aleasemodificationshouldbeaccountedforasaseparateleaseifthereisamodificationinafinanceleaseandbothofthefollowingsapply:

?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormore

underlyingassets;and?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alonepricefortheincreaseinscopewithanyappropriateadjustmenttothatstand-aloneprice.Foramodificationtoafinanceleasethatisnotaccountedforasaseparatelease,theGroupaccountsforthemodificationasfollows:

?Iftheleasewouldhavebeenclassifiedasanoperatingleasehadthemodificationbeen

effectiveatthecommencementdate,theGroupshouldaccountfortheleasemodificationas

anewleasefromtheeffectivedateofthemodification,andmeasurethecarryingamountof

theunderlyingassetsattheamountequaltothenetleaseinvestmentbeforetheeffective

dateofthemodification;?Iftheleasewouldhavebeenclassifiedasafinanceleasehadthemodificationbeeneffective

atthecommencementdate,theGroupshouldaccountforitinaccordancewiththe

provisionsoncontractmodificationandrenegotiationunderAccountingStandardsfor

BusinessEnterprisesNo.22-FinancialInstruments:RecognitionandMeasurement.

32.2.5SaleandleasebacktransactionsTheGroupasthebuyer-lessorIfthetransferofanassetinasaleandleasebacktransactiondoesnotconstituteasale,theGroupdoesnotrecognizethetransferredassetbutafinancialassetatanamountequaltothetransferproceeds,andaccountsforsuchfinancialassetundertheAccountingStandardsforBusinessEnterprisesNo.22-FinancialInstruments:RecognitionandMeasurement.Ifthetransferofanassetconstitutesasale,theGroupaccountsforthepurchaseoftheassetinaccordancewithotherapplicableAccountingStandardsforBusinessEnterprisesandaccountsfortheleaseoftheasset.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

33.Exchangeofnon-monetaryassetsWhenthenon-monetaryassetsareofcommercialsubstanceandthefairvalueofassetsreceivedortheassetsgivenupcanbemeasuredreliably,thenon-monetarytransactionsaremeasuredatfairvalue.Fortheassetreceived,thefairvalueoftheassetgivenupandrelatedtaxespayablearerecognizedasthecostatinitialrecognition;Fortheassetgivenup,atderecognition,thedifferencebetweenthefairvalueandthecarryingamountisrecognizedinprofitorlossforthecurrentperiod.Whenthereisclearevidenceindicatingthatthefairvalueofthereceivedassetismorereliable,fortheassetreceived,thefairvalueoftheassetreceivedandrelatedtaxespayablearerecognizedasthecostatinitialrecognition;Fortheassetgivenup,atderecognition,thedifferencebetweenthefairvalueoftheassetreceivedandthecarryingamountoftheassetgivenupisrecognizedinprofitorlossforthecurrentperiod.Whenthenon-monetarytransactionsfailtomeetcriteriatobemeasuredatfairvalue,thetransactionsaremeasuredatcarryingamounts.Fortheassetreceived,thecarryingamountoftheassetgivenupandrelevanttaxespayablearerecognizedasthecostofatinitialrecognition.Fortheassetgivenup,atderecognition,noprofitorlossisrecognized.

34.SafetyproductioncostAccordingtotheAdministrativeMeasuresfortheCollectionandUtilizationofEnterpriseWorkSafetyFunds(CaiZi[2022]No.136)jointlyissuedbytheMinistryofFinanceandtheEmergencyDepartmenton13December2022,safetyproductioncostsetasidebytheGroupisdirectlyincludedinthecostofrelevantproductsorrecognizedinprofitorlossfortheperiod,andtransferredtospecialreservesimultaneously.Whensafetyproductioncostsetasideisutilized,ifthecostsincurredcanbecategorizedasexpenditure,thecostsincurredshouldbechargedagainstthespecialreserve.Ifthecostssetasideareusedtobuildupfixedassets,thecostsshouldbechargedtoconstructioninprogress,andreclassifiedtofixedassetswhenthesafetyprojectsarereadyforintendeduse.Meantime,expendituresinbuildingupfixedassetsaredirectlychargedagainstthespecialreservewiththeaccumulateddepreciationrecognizedatthesameamount.Depreciationwillnotbemadeinthefutureperiodonsuchfixedassets.(V)CRITICALJUDGMENTSINAPPLYINGACCOUNTINGPOLICIESANDKEY

ASSUMPTIONSANDUNCERTAINTIESINACCOUNTINGESTIMATESIntheapplicationofaccountingpoliciesandaccountingestimatesassetoutinNote(IV),theGroupisrequiredtomakejudgments,estimatesandassumptionsaboutthecarryingamountsofitemsinthefinancialstatementsthatcannotbemeasuredaccurately,duetotheinternaluncertaintyoftheoperatingactivities.Thesejudgments,estimatesandassumptionsarebasedonhistoricalexperienceoftheGroup'smanagementaswellasotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.

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(V)CRITICALJUDGMENTSINAPPLYINGACCOUNTINGPOLICIESANDKEY

ASSUMPTIONSANDUNCERTAINTIESINACCOUNTINGESTIMATES-continuedTheGroupregularlyreviewsthejudgments,estimatesandassumptionsonagoingconcernbasis.Changesinaccountingestimateswhichonlyaffectthecurrentperiodshouldberecognizedinthecurrentperiod;changeswhichnotonlyaffectthecurrentbutthefutureperiodsshouldberecognizedinthecurrentandfutureperiods.Atthebalancesheetdate,keyassumptionsanduncertaintiesincriticaljudgmentsandaccountingestimatesthatarelikelytoleadtosignificantadjustmentstothecarryingamountsofassetsandliabilitiesinthefutureareasfollows:

GoodwillimpairmentForthepurposeofimpairmenttesting,thepresentvalueoftheexpectedfuturecashflowsoftheassetsgrouporportfolioincludinggoodwillshallbecalculated,andsuchexpectedfuturecashflowsshallbeestimated.Meantime,arateshallbedeterminedthatshouldreflectthetimevalueofmoneyonthecurrentmarketandthespecificinterestrisks.RecognitionofdeferredincometaxTheGroupcalculatesandmakesprovisionfordeferredtaxliabilitiesaccordingtotheprofitdistributionplansofsubsidiaries,associatesandjointventuresandrelevantprovisionsoftaxlaw.Forretainedearningsoftheinvesteewhicharenotexpectedtobedistributed,sincetheprofitswillbeusedforthedailyoperationandfuturedevelopmentoftheinvestee,nodeferredtaxliabilitiesarerecognized.Iftheprofitstobeactuallydistributedinfutureyearsaremoreorlessthanthoseexpected,correspondingdeferredtaxliabilitieswillberecognizedorreversedinprofitorlossfortheperiodattheearlierofthedateonwhichtheprofitdistributionplanischangedandthedateonwhichtheprofitdistributionisdeclared.Deferredtaxassetsarerecognizedbasedonthedeductibletemporarydifferencesandthecorrespondingtaxrate,totheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized.Iftheactualtaxableincomeinfutureyearsaremoreorlessthanthatexpected,correspondingdeferredtaxassetswillberecognizedorreversedinprofitorlossfortheperiodinwhichtheyareactuallyincurred.EstimatedusefullivesandresidualvalueoffixedassetsandintangibleassetsTheGroupassessestheestimatedusefullivesandresidualvalueoffixedassetsandintangibleassets.Suchestimateismadebyreferencetothehistoricalexperienceofactualusefullivesandresidualvalueoffixedassetsandintangibleassetsofsimilarnatureandfunction,andissubjecttosignificantchangesduetotechnicalinnovationandfierceindustrycompetition.Wheretheestimatedusefullivesandresidualvalueoffixedassetsandintangibleassetsarelessthanthepreviousestimates,theGroupwillincreasethedepreciationandamortization,orwriteofforeliminatethetechnicallyobsoletefixedassetsorintangibleassets.

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(VI)CHANGESINSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING

ESTIMATES

1.Changesinsignificantaccountingpolicies

1.1InterpretationNo.16oftheAccountingStandardsforBusinessEnterprisesTheInterpretationNo.16oftheAccountingStandardsforBusinessEnterprises(the"InterpretationNo.16")wasissuedbytheMinistryofFinanceon30November2022,whichclarifiedtheaccountingtreatmentconcerningtheexemptionofinitialrecognitionofdeferredincometaxrelatingtoassetsandliabilitiesarisingfromasingletransaction.InterpretationNo.16revisedthecoverageofexemptionoftheinitialrecognitionofdeferredincometaxintheAccountingStandardsforBusinessEnterprisesNo.18–IncomeTax,andspecifiedthattherelevantprovisionsontheexemptionofinitialrecognitionofdeferredtaxliabilitiesanddeferredtaxassetsarenotapplicabletoasingletransaction(notabusinesscombination)thataffectsneithertheaccountingprofitnortaxableincome(ordeductiblelosses)atthetimeoftransaction,andwheretheassetsandliabilitiesinitiallyrecognizedgenerateequaltaxabletemporarydifferencesanddeductibletemporarydifferences.TheInterpretationbecameeffectivefrom1January2023andcouldbeearlyapplied.TheGroupstartedtoapplytheInterpretationfrom1January2023,adoptedtheretrospectiveadjustmentmethodforaccountingtreatment,andrestatedthefinancialstatementsforthecomparativeyear.Theimpactsarelistedasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item1/1/2022Adjustment1/1/2022
Assets:
Deferredtaxassets398,145,710.8456,499,013.55454,644,724.39
Liabilities:
Deferredtaxliabilities4,550,417,470.612,001,049.094,552,418,519.70
Shareholders'equity:
Unappropriatedprofit14,205,879,106.4921,052,360.1714,226,931,466.66
Minorityinterests71,234,238,229.3533,445,604.2971,267,683,833.64

Item

Item31/12/2022Adjustment31/12/2022
Assets:
Deferredtaxassets372,927,261.4061,571,559.55434,498,820.95
Liabilities:
Deferredtaxliabilities4,853,271,307.861,748,527.474,855,019,835.33
Shareholders'equity:
Othercomprehensiveincome-691,536,248.441,982,628.58-689,553,619.86
Unappropriatedprofit16,679,688,347.0922,299,954.0516,701,988,301.14
Minorityinterests73,994,641,893.2135,540,449.4574,030,182,342.66

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(VI)CHANGESINSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING

ESTIMATES-continued

1.Changesinsignificantaccountingpolicies-continued

1.1InterpretationNo.16oftheAccountingStandardsforBusinessEnterprises-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item2022Adjustment2022
Profitandloss:
Incometaxexpenses1,113,179,679.35-220,002.601,112,959,676.75
Netprofit8,231,683,297.67220,002.608,231,903,300.27
Profitorlossattributabletominorityshareholders4,894,237,074.85-1,027,591.284,893,209,483.57
OthercomprehensiveincomeattributabletoshareholdersoftheCompany,netoftax206,102,739.651,982,628.58208,085,368.23
Othercomprehensiveincomeattributabletominorityinterests,netoftax1,417,424,133.353,122,436.441,420,546,569.79

(VII)TAXES

1.Majortaxesandtaxrates

TaxesTaxbasisTaxrate
EnterpriseincometaxTaxableincome8.25%-34%(Note1)
Dividendincometax5%,10%(Note2)
Value-addedtax("VAT")(Note3)Incomefromsaleofgoods9%,13%
Incomefromtransportation,loadingandunloadingbusinessandpartofmodernserviceindustries6%
Incomefromsaleofrealestate,propertymanagement,leaseofrealestate,etc.3%,5%,9%
Incomefromleasesofmovableproperties13%
Socialcontributiontax(Note4)Income0.65%-7.6%
DeedtaxLanduserightandpropertytransferamount3%-5%
Propertytax70%ofcostofpropertyorrentalincome1.2%or12%
CitymaintenanceandconstructiontaxVATpaid1%-7%
EducationsurtaxVATpaid3%
LandusetaxLandareaactuallyoccupiedRMB1-12persquaremeter
Environmentalprotectiontax(Note5)AmountofpollutionequivalentsofthetaxableairpollutantsconvertedbasedonthequantityofpollutionsdischargedRMB1.8perpollutionequivalent

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(VII)TAXES-continued

1.Majortaxesandtaxrates-continuedNote1:TheGroup'senterpriseincometaxiscalculatedbasedonthecurrenttaxratestipulated

bylocaltaxlaws.Amongthem,theCompanyissubjecttoanenterpriseincometaxrateof25%,thesubsidiariessetupinHongKongaresubjecttoanenterpriseincometaxrateof8.25%and16.5%,themajorityofsubsidiariessetupinChinaaresubjecttoanenterpriseincometaxrateof25%andcertainothersaresubjecttothepreferentialtaxrateforsmallandmicroenterprisesof20%,certaindomesticsubsidiariesaresubjecttothepreferentialtaxrateforhigh-techenterprisesorencouragedindustrialenterprisesintheregionof15%,andtheotheroverseassubsidiariesaresubjecttoenterpriseincometaxratesbetween10%and34%.TheCompanyobtainsdividendsdistributedbyoverseassubsidiariesandshouldpayenterpriseincometaxatarateof25%inaccordancewithrelevantChinesetaxlaws.TheCompanyobtainstaxableincomeoutsideofChina,andtheamountofincometaxthathasbeenpaidabroadcanbeoffsetwiththecurrenttaxableamount.ThecreditlimitisthetaxableamountcalculatedinaccordancewiththeprovisionsoftheEnterpriseIncomeTaxLaw.Note2:ForeigninvestorswhoreceivedividendsofprofitsfromChinesesubsidiariesin2008

andthereaftergenerallyshallpaywithholdingincometaxatarateof10%inaccordancewiththerelevantprovisionsonthePRCenterpriseincometax.Forcompaniesincorporatedincertainregions(includingHongKongandSingapore),ifthecompaniesareactualownersholdingmorethan25%interestinthesubsidiariesinChina,theywillenjoyapreferentialtaxrateof5%.Note3:TheVATamountisthebalanceoftheoutputtaxlessthedeductibleinputtax,andthe

outputtaxiscalculatedinaccordancewiththesalesincomeandthecorrespondingtaxratestipulatedintherelevanttaxlawsofChina.Note4:ThesocialcontributiontaxisthetaxpaidbyTCPParticipa??esS.A.(hereinafter

referredtoas"TCP"),anoverseassubsidiaryoftheGroup,tothelocalgovernment.Note5:TheenvironmentalprotectiontaxisthetaxpaidbyZhanjiangPort(Group)Co.,Ltd.

(hereinafterreferredtoas"ZhanjiangPort"),adomesticsubsidiaryoftheGroup,tothe

government.

2.TaxpreferenceCertainsubsidiariesoftheGroupinChinaarerecognizedashigh-techenterprisesorencouragedindustrialenterprisesintheregionandaresubjecttoanenterpriseincometaxrateof15%.TheGroup'ssubsidiariesoutsideofChinamaybesubjecttoenterpriseincometaxpreferenceinaccordancewithrelevantlocaltaxpolicies.

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(VII)TAXES-continued

2.Taxpreference-continuedFrom1January2023to31December2027,theurbanlandusetaxforcertaindomesticsubsidiariesoftheGrouponthelandforbulkcommoditystoragefacilitiesisleviedatthereducedrateof50%ofthetaxamountapplicabletothegradeoftheland.CertainsubsidiariesoftheGroupinChinaaresmallandmicroenterprisesandaresubjecttoapreferentialtaxrateof20%.InaccordancewiththeAnnouncementonRelevantTaxandFeePoliciesforFurtherSupportingtheDevelopmentofMicroandSmallEnterprisesandIndividualIndustrialandCommercialHouseholds(AnnouncementNo.12oftheMinistryofFinanceandtheStateAdministrationofTaxationin2023),forsmallandmicroenterprises,thetaxableincomeiscalculatedatareducedrateof25%andtheenterpriseincometaxispaidatarateof20%from1January2023and31December2027.AsapprovedbyShekouTaxationSub-bureauofShenzhenTaxBureau,StateAdministrationofTaxationon12October2017,certainsubsidiariesoftheGroupareexemptedfromVATforauxiliarylogisticsservices(warehousingservices,excludingdeliveryservices)providedtooverseasenterprisesin2023.(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS

1.Cashandbankbalances

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Cash974,692.93726,960.10
Including:RMB2,767.602,767.60
USD225,565.3744,853.90
HKD25,259.8926,167.88
BRL8,625.456,536.63
Others712,474.62646,634.09
Bankdeposits(Note1)13,934,385,410.9211,219,776,605.37
Including:RMB8,215,456,953.088,846,763,966.57
USD3,189,067,302.341,045,085,866.19
EUR655,188,558.31745,066,787.31
BRL283,264,276.30379,062,088.91
HKD1,211,715,308.91141,668,372.90
AUD36,381,245.064,708,056.85
FCFA295,232,843.14-
Others48,078,923.7857,421,466.64
Othercashandbankbalances(Note2)54,207,918.46553,726,619.61
Including:LKR39,287,209.66-
RMB14,920,544.77340,778,819.19
HKD164.03212,571,712.02
USD-376,088.40
FundsdepositedinFinanceCompany(Note3)2,090,078,155.931,841,698,554.32
Total16,079,646,178.2413,615,928,739.40
Including:Totalamountoffundsdepositedoverseas4,143,910,318.924,012,922,744.09

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

1.Cashandbankbalances-continuedNote1:TheinterestreceivableandfundsfrozenforETCcardbusinesswhichareincludedinthe

balanceofbankdepositsattheendoftheyearamountedtoRMB13,563,157.74andRMB12,000.00,respectively.Note2:Thefundsfrozenforlitigation,thebalanceofthesecuritiesaccount,therestricted

banker'sletterofguarantee,andtherestrictedperformancebond,whichareincludedinthebalanceofothercashandbankbalancesattheendoftheyear,amountedtoRMB1,826,085.98,RMB7,684,462.32,RMB4,214,480.40,RMB40,482,889.76.Note3:ThefundsdepositedinFinanceCompanyincludedtheinterestreceivableamountingto

RMB933,933.26.

2.Held-for-tradingfinancialassets

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
FinancialassetsclassifiedasatFVTPL4,568,806,108.842,998,781,599.63
Including:Investmentsindebtinstruments450,209.48-
Investmentsinequityinvestments-135,742.11
Structureddeposits4,568,355,899.362,998,645,857.52
Total4,568,806,108.842,998,781,599.63

3.Notesreceivable

(1)Categoryofnotesreceivable

Category31/12/202331/12/2022
Bankacceptance315,150,195.09395,000.00
Commercialacceptance10,000,000.0036,000,000.00
Total325,150,195.0936,395,000.00

Note:In2023,noprovisionforbaddebtsofnotesreceivableisassessedonanindividualbasis

and,theacceptorofbankacceptanceandcommercialacceptanceforwhichprovisionforbaddebtsisassessedonaportfoliobasishashighcreditratingswithnosignificantcreditrisks,therefore,noprovisionforbaddebtsismade.

(2)Asat31December2023,theGrouphasnonotesreceivablepledged.

(3)Asat31December2023,theGrouphasnoendorsedordiscountedandnotyetmatured

notesreceivableatthebalancesheetdate.

(4)TheGrouphasnonotesreceivablewrittenoffin2023.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

4.Accountsreceivable

(1)Overallsituationofaccountsreceivable

CHINAMERCHANTSPORTGROUPCO.,LTD.Category

Category31/12/202331/12/2022
Accountsreceivable1,194,923,829.341,370,162,956.88
Les:provisionforcreditloss91,022,363.0994,013,267.44
Total1,103,901,466.251,276,149,689.44

(2)Aginganalysisofaccountsreceivable

Aging31/12/202331/12/2022
Within1year1,112,613,215.991,296,002,000.92
1-2years23,735,983.6711,157,744.62
2-3years3,139,299.7610,897,749.26
Morethan3years55,435,329.9252,105,462.08
Total1,194,923,829.341,370,162,956.88

(3)Disclosureofaccountsreceivablebycategory

CreditratingExpectedcreditlossrate(%)31/12/202331/12/2022
GrosscarryingamountBaddebtprovisionCarryingamountGrosscarryingamountBaddebtprovisionCarryingamount
A0.00-0.10622,585,699.82428,822.70622,156,877.12757,893,845.42254,506.65757,639,338.77
B0.10-0.30428,914,672.70552,173.90428,362,498.80437,329,923.88579,435.66436,750,488.22
C0.30-50.0062,942,396.679,638,519.3053,303,877.3791,915,183.3412,581,359.1679,333,824.18
D50.00-100.0080,481,060.1580,402,847.1978,212.9683,024,004.2480,597,965.972,426,038.27
Total--1,194,923,829.3491,022,363.091,103,901,466.251,370,162,956.8894,013,267.441,276,149,689.44

(4)Accountsreceivabledisclosedbymethodofbaddebtprovision:

Category31December202331December2022
GrosscarryingamountBaddebtprovisionCarryingamountGrosscarryingamountBaddebtprovisionCarryingamount
AmountProportion(%)AmountProportion(%)AmountProportion(%)AmountProportion(%)
Baddebtprovisionassessedonanindividualbasis80,481,060.156.7480,402,847.1999.9078,212.9683,024,004.246.0680,597,965.9797.082,426,038.27
Baddebtprovisionassessedonaportfoliobasis1,114,442,769.1993.2610,619,515.900.951,103,823,253.291,287,138,952.6493.9413,415,301.471.041,273,723,651.17
Total1,194,923,829.34100.0091,022,363.09——1,103,901,466.251,370,162,956.88100.0094,013,267.44——1,276,149,689.44

Baddebtprovisionassessedonanindividualbasis:

Name31December2023Reasonforprovision
GrosscarryingamountBaddebtprovisionProportion(%)
Entity124,908,308.4424,908,308.44100.00Lowprobabilityofrecovery
Entity215,228,816.6115,150,603.6799.49Lowprobabilityofrecovery
Entity37,693,327.337,693,327.33100.00Lowprobabilityofrecovery
Entity46,169,500.456,169,500.45100.00Lowprobabilityofrecovery
Entity55,923,278.205,923,278.20100.00Lowprobabilityofrecovery
Others20,557,829.1220,557,829.10100.00Lowprobabilityofrecovery
Total80,481,060.1580,402,847.19————

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

4.Accountsreceivable-continued

(4)Accountsreceivabledisclosedbymethodofbaddebtprovision:-continuedBaddebtprovisionassessedonaportfoliobasis:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Name

Name31December2023
AccountsreceivableBaddebtprovisionProportion(%)
A622,585,699.82428,822.700.07
B428,914,672.70552,173.900.13
C62,942,396.679,638,519.3015.31
Total1,114,442,769.1910,619,515.90——

(5)Measurementofexpectedcreditlossatanamountequivalenttothelifetimeexpected

creditloss

ItemLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)Total
At1January202313,415,301.4780,597,965.9794,013,267.44
Grosscarryingamountofaccountsreceivableat1January2023
-Transfertocredit-impairedaccountsreceivable---
-Reversalofaccountsreceivablethatarenotcredit-impaired---
Provisionfortheyear3,361,539.3717,614,537.4220,976,076.79
Reversalfortheyear-5,995,730.86-5,694,956.74-11,690,687.60
Effectofchangesinthescopeofconsolidation--5,662,552.89-5,662,552.89
Transfer-outduetoderecognitionoffinancialassets(includingdirectwrite-down)--8,087,700.00-8,087,700.00
Otherchanges-161,594.081,635,553.431,473,959.35
At31December202310,619,515.9080,402,847.1991,022,363.09

(6)Detailsofbaddebtprovision

Category31/12/2022Changesfortheyear31/12/2023
ProvisionRecoveryorreversalEffectofchangesinthescopeofconsolidationCharge-offorwrite-offOtherchanges
Baddebtprovisionassessedonanindividualbasis80,597,965.9717,614,537.42-5,694,956.74-5,662,552.89-8,087,700.001,635,553.4380,402,847.19
Baddebtprovisionassessedonaportfoliobasis13,415,301.473,361,539.37-5,995,730.86---161,594.0810,619,515.90
Total94,013,267.4420,976,076.79-11,690,687.60-5,662,552.89-8,087,700.001,473,959.3591,022,363.09

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

4.Accountsreceivable-continued

(7)Accountsreceivablewrittenoffintheyear

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNatureAmountReasonforwrite-offProceduresperformedArisingfromrelatedpartytransactionsornot
EntityAServicefees8,087,700.00ConfirmedasirrecoverableYesNo
Total——8,087,700.00——————

(8)Thetopfivebalancesofaccountsreceivableattheendoftheyearclassifiedbydebtor

NameofentityRelationshipwiththeGroup31/12/2023AgingProportionoftheamounttothetotalaccountsreceivable(%)Baddebtprovisionat31/12/2023
Client1Non-relatedparty259,396,393.45Within1year,1-2years21.7130,325.21
Client2Non-relatedparty68,403,654.05Within1year5.7254,946.81
Client3Non-relatedparty43,464,824.09Within1year,1-2years3.647,510.99
Client4Non-relatedparty29,747,677.62Within1year2.497,909.61
Client5Non-relatedparty29,355,671.89Within1year2.46-
Total430,368,221.1036.02100,692.62

5.Receivablesfinancing

(1)Classificationofreceivablesfinancing

Item31/12/202331/12/2022
Bankacceptancemeasuredatfairvalue2,001,669.46163,766,913.10

(2)Asat31December2023,theGrouphasnopledgedreceivablesfinancing.

(3)Attheendoftheyear,theCompany'sreceivablesfinancingthathavebeenendorsedor

discountedandhavenotyetmaturedatthebalancesheetdateareasfollows:

ItemAmountderecognizedattheendoftheyearAmountnotderecognizedattheendoftheyear
Bankacceptancemeasuredatfairvalue16,291,826.66-
Total16,291,826.66-

(4)In2023,noprovisionforbaddebtofreceivablesfinancingisassessedonanindividual

basisand,theacceptorofbankacceptanceforwhichprovisionforbaddebtsisassessedonaportfoliobasishashighcreditratingswithnosignificantcreditrisks,therefore,noprovisionforcreditlossismade.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

6.Prepayments

(1)Aginganalysisofprepayments

CHINAMERCHANTSPORTGROUPCO.,LTD.

Aging

Aging31/12/202331/12/2022
GrosscarryingamountProportion(%)ImpairmentprovisionGrosscarryingamountProportion(%)Impairmentprovision
Within1year(inclusive)36,798,888.0197.70-61,917,391.4397.31-
1-2years(inclusive)615,427.751.63-1,589,158.492.50-
2-3years(inclusive)129,361.040.34----
Morethan3years120,875.500.33-120,875.500.19-
Total37,664,552.30100.00-63,627,425.42100.00-

(2)Asat31December2023,theGrouphasnosignificantprepaymentsagedmorethanone

year.

(3)Thetopfivebalancesofprepaymentsattheendoftheyearclassifiedbyentities

NameofentityRelationshipwiththeCompany31/12/2023AgingProportionoftheclosingbalancetothetotalprepayments(%)Reasonfornotbeingsettled
Entity1Non-relatedparty14,057,775.95Within1year37.32Unsettledprepaymentforpremium
Entity2Non-relatedparty6,591,641.10Within1year,1-2years,and2-3years17.50Unsettledprepaymentforcommunicationcharges
Entity3Non-relatedparty2,298,659.10Within1year6.10Unsettledprepaymentforpremium
Entity4Non-relatedparty743,362.83Within1year1.97Unsettledprepaymentforprocurement
Entity5Non-relatedparty641,646.87Within1year1.70Unsettledprepaymentforprocurement
Total24,333,085.8564.59

7.Otherreceivables

7.1Presentationofotherreceivables

Item31/12/202331/12/2022
Dividendsreceivable343,386,866.06416,040,485.62
Otherreceivables596,628,127.95532,801,608.68
Total940,014,994.01948,842,094.30

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

7.Otherreceivables-continued

7.2Dividendsreceivable

(1)Presentationofdividendsreceivable

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofinvestee

Nameofinvestee31/12/202331/12/2022
ChinaNanshanDevelopment(Group)Incorporation("NanshanGroup")203,577,000.00240,591,000.00
ZhanjiangMerchantsPortCityInvestmentCo.,Ltd.("MerchantsPortCity")38,809,044.7741,847,044.77
DalianPortLogisticsNetworkCo.,Ltd.30,605,256.76-
YingkouGangxinTechnologyCo.,Ltd.23,881,213.75-
COSCOLogistics(Zhanjiang)Co.,Ltd.13,449,001.1618,449,001.16
ChinaOceanShippingAgency(Shenzhen)Co.,Ltd.11,232,000.00-
Tin-canIslandContainerTerminalLtd21,960,680.2265,121,449.40
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.-50,000,000.00
Others216,400.00448,447.23
Sub-total343,730,596.66416,456,942.56
Less:Baddebtprovision343,730.60416,456.94
Carryingamount343,386,866.06416,040,485.62

(2)Significantdividendsreceivableagedmorethan1year

Nameofinvestee31/12/202331/12/2022AgingReasonfornotbeingrecoveredWhetherbaddebtshavebeenincurredandthebasisfordetermination
NanshanGroup129,549,000.00111,042,000.001-2yearsUndergoingrelevantformalities,expectedtoberecoveredbytheendof2024No

(3)Changesinprovisionforcreditlossofdividendsreceivable

ItemStage1Stage2Stage3Total
12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)
At1January2023416,456.94--416,456.94
Balanceat1January2023
-TransfertoStage2----
-TransfertoStage3----
-ReversetoStage2----
-ReversetoStage1----
Provisionfortheyear----
Reversalfortheyear-72,726.34---72,726.34
Transfer-outduetoderecognitionoffinancialassets(includingdirectwrite-down)----
Otherchanges----
At31December2023343,730.60--343,730.60

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

7.Otherreceivables-continued

7.2Dividendsreceivable-continued

(4)Detailsofbaddebtprovision

CHINAMERCHANTSPORTGROUPCO.,LTD.

Category

Category31/12/2022Changesfortheyear31/12/2023
ProvisionRecoveryorreversalCharge-offorwrite-offOtherchanges
Baddebtprovisionassessedonanindividualbasis------
Baddebtprovisionassessedonaportfoliobasis416,456.94--72,726.34--343,730.60
Total416,456.94--72,726.34--343,730.60

7.3Otherreceivables

(1)Aginganalysisofotherreceivables

Aging31/12/202331/12/2022
OtherreceivablesBaddebtprovisionProportion(%)OtherreceivablesBaddebtprovisionProportion(%)
Within1year261,380,065.653,386,613.181.30487,428,214.83229,150,234.7147.01
1-2years268,634,561.16189,669,720.4870.61192,100,283.584,690,780.382.44
2-3years189,029,374.184,675,136.052.4712,444,128.529,740,862.3378.28
Morethan3years834,322,127.22759,006,530.5590.97844,098,122.57759,687,263.4090.00
Total1,553,366,128.21956,738,000.261,536,070,749.501,003,269,140.82

(2)Disclosureofotherreceivablesbynature

Item31/12/202331/12/2022
Operationcompensation(Note1)857,551,782.45859,677,826.43
Advancepayments264,603,548.43295,592,304.09
Landcompensation(Note2)89,630,000.0089,630,000.00
Guaranteesanddeposits24,853,374.4226,402,747.81
Specialsubsidy24,800,000.0031,716,257.00
Others291,927,422.91233,051,614.17
Sub-total1,553,366,128.211,536,070,749.50
Less:Baddebtprovision956,738,000.261,003,269,140.82
Total596,628,127.95532,801,608.68

Note1:ItrepresentstheoperationcompensationreceivablebyasubsidiaryoftheCompany

fromtheholdingcompanyofitsminorityshareholderinaccordancewiththeagreement.Asat31December2023,abaddebtprovisionhasbeenmadefortheaccumulatedoutstandingcompensationamountingtoRMB857,551,782.45.Note2:On9October2021,ZhanjiangPort,asubsidiaryoftheCompany,enteredintothe

AgreementonRecoveryofState-ownedLandUseRightswiththelocalgovernment.PursuanttotheAgreement,ZhanjiangPortshallreturnthelandofapproximately195.68mulocatedinZhanjiangComprehensiveBondedZoneontheeastofShugangAvenue,whichisamountingtoRMB89,630,000.00.Theabove-mentionedlandhasbeenreturnedbefore31December2021.Asat31December2023,theabove-mentionedlandcompensationofRMB89,630,000.00hasnotbeenrecoveredyet.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

7.Otherreceivables-continued

7.3Otherreceivables-continued

(3)Provisionforcreditlossofotherreceivables

CHINAMERCHANTSPORTGROUPCO.,LTD.Creditrating

CreditratingExpectedcreditlossrate(%)31/12/202331/12/2022
12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)Total12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)Total
A0.00-0.10596,631,116.95--596,631,116.95532,760,873.61--532,760,873.61
B0.10-0.30--------
C0.30-50.00--------
D50.00-100.00--956,735,011.26956,735,011.26--1,003,309,875.891,003,309,875.89
Grosscarryingamount——596,631,116.95-956,735,011.261,553,366,128.21532,760,873.61-1,003,309,875.891,536,070,749.50
Baddebtprovision——2,989.00-956,735,011.26956,738,000.2624,451.35-1,003,244,689.471,003,269,140.82
Carryingamount——596,628,127.95--596,628,127.95532,736,422.26-65,186.42532,801,608.68

Significantotherreceivablesforwhichbaddebtprovisionisassessedonanindividualbasis(creditratingofD)

Name31/12/2023BaddebtprovisionECLrate(%)Reasonforprovision
Entity1857,551,782.45857,551,782.45100.00Expectedtobeunrecoverable(Note)
Entity264,841,250.0964,841,250.09100.00Expectedtobeunrecoverable
Entity314,000,000.0014,000,000.00100.00Expectedtobeunrecoverable
Others20,341,978.7220,341,978.72100.00Expectedtobeunrecoverable
Total956,735,011.26956,735,011.26————

Note:RefertoNote(VIII)7.3(2).

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

7.Otherreceivables-continued

7.3Otherreceivables-continued

(4)Provision,reversalandwrite-offofcreditlossofotherreceivables

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemStage1Stage2Stage3Total
12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)
At1January202324,451.35-1,003,244,689.471,003,269,140.82
Balanceofotherreceivablesat1January2023
-TransfertoStage2----
-TransfertoStage3----
-ReversetoStage2----
-ReversetoStage16,000.00--6,000.00-
Provisionfortheyear36,129.03-3,459,687.183,495,816.21
Reversalfortheyear-27,462.35--47,267,828.40-47,295,290.75
Effectofchangesinthescopeofconsolidation-36,129.03--545,545.45-581,674.48
Charge-offfortheyear----
Write-offfortheyear---73,074.00-73,074.00
Otherchanges---2,076,917.54-2,076,917.54
At31December20232,989.00-956,735,011.26956,738,000.26

(5)Detailsofbaddebtprovision

Category01/01/2023Changesfortheyear31/12/2023
ProvisionRecoveryorreversalEffectofchangesinthescopeofconsolidationCharge-offorwrite-offOtherchanges
Baddebtprovisionassessedonanindividualbasis1,003,244,689.473,459,687.18-47,273,828.40-545,545.45-73,074.00-2,076,917.54956,735,011.26
Baddebtprovisionassessedonaportfoliobasis24,451.3536,129.03-21,462.35-36,129.03--2,989.00
Total1,003,269,140.823,495,816.21-47,295,290.75-581,674.48-73,074.00-2,076,917.54956,738,000.26

Amongwhich,thebaddebtprovisionrecoveredorreversedfortheperiodthatissignificantinamountislistedasbelow:

NameAmountrecoveredorreversedReasonforretrieveRecoveredthroughBasistodeterminetheoriginalproportionofbaddebtprovisionanditsreasonableness
Entity447,169,811.32Improvementindebtor'soperationsCashBasedonprioryears'financialposition
Total47,169,811.32

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

7.Otherreceivables-continued

7.3Otherreceivables-continued

(6)Write-offofotherreceivablesintheyear

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNatureAmountReasonforwrite-offProceduresperformedArisingfromrelatedpartytransactionsornot
Entity5Rentsreceivable73,074.00ThecounterpartywasunabletomakepaymentsWrite-offuponapprovalNo
Total——73,074.00——————

(7)Thetopfivebalancesofotherreceivablesattheendoftheyearclassifiedbydebtor

NameofentityRelationshipwiththeGroupNature31/12/2023AgingProportiontototalotherreceivables(%)Closingbalanceofprovisionforcreditloss
Entity1Non-relatedpartyOperationcompensation857,551,782.45Within1year,morethan3years55.21857,551,782.45
Entity2Non-relatedpartyAdvancepayments122,674,255.48Within1year,1-2years,2-3years7.90-
Entity3Non-relatedpartyLandcompensation89,630,000.002-3years5.77-
Entity4Non-relatedpartyAdvancepayments64,841,250.09Within1year,1-2years,2-3years,morethan3years4.1764,841,250.09
Entity5Non-relatedpartyAdvancepayments59,698,841.66Within1year3.84-
Total————1,194,396,129.68——76.89922,393,032.54

8.Inventories

(1)Categoryofinventories

Item31/12/202331/12/2022
GrosscarryingamountProvisionfordeclineinvalueofinventoriesCarryingamountGrosscarryingamountProvisionfordeclineinvalueofinventoriesCarryingamount
Rawmaterials217,097,512.981,234,628.38215,862,884.60196,425,573.041,326,130.64195,099,442.40
Finishedgoods2,520,205.91-2,520,205.9117,248,970.37-17,248,970.37
Others515,102.36-515,102.3612,774,408.71-12,774,408.71
Total220,132,821.251,234,628.38218,898,192.87226,448,952.121,326,130.64225,122,821.48

(2)Provisionfordeclineinvalueofinventories

Category1/1/2023IncreaseDecreaseEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies31/12/2023
ProvisionOthersReversalorcharge-offOthers
Rawmaterials1,326,130.64--99,456.13-7,953.871,234,628.38

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

8.Inventories-continued

(2)Provisionfordeclineinvalueofinventories-continuedProvisionfordeclineinvalueofinventoriesismadeonanitem-by-itembasisandnoprovisionfordeclineinvalueofinventoriesismadeonaportfoliobasis.Provisionfordeclineinvalueofinventoriesisreversedinthecurrentyearduetothereboundinvalueofinventories.

(3)Asat31December2023,theGrouphasnocapitalizedborrowingcostinthebalanceof

inventories.

9.Non-currentassetsduewithinoneyear

(1)Presentationofnon-currentassetsduewithinoneyear

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Long-termreceivablesduewithinoneyear17,468,849.83903,128,422.35
Less:Baddebtprovision17,468.85903,128.42
Carryingamount17,451,380.98902,225,293.93

(2)Provisionforbaddebts

ItemStage1Stage2Stage3Total
12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)
At1January2023903,128.42--903,128.42
Grosscarryingamountoflong-termreceivablesat1January2023
-TransfertoStage2----
-TransfertoStage3----
-ReversetoStage2----
-ReversetoStage1----
Provisionfortheyear6,200.00--6,200.00
Reversalfortheyear-891,859.57---891,859.57
Transfer-outduetoderecognitionoffinancialassets(includingdirectwrite-down)----
Otherchanges----
At31December202317,468.85--17,468.85

(3)Detailsofbaddebtprovision

Category31/12/2022Changesfortheyear31/12/2023
ProvisionRecoveryorreversalCharge-offorwrite-offOtherchanges
Baddebtprovisionassessedonaportfoliobasis903,128.426,200.00-891,859.57--17,468.85
Total903,128.426,200.00-891,859.57--17,468.85

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

10.Othercurrentassets

(1)Categoryofothercurrentassets

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Inputtaxtobedeductedandcertified115,121,766.1370,627,183.33
Prepaidtaxes71,771,659.0998,329,205.73
Others2,780,075.6516,946,751.47
Total189,673,500.87185,903,140.53

11.Long-termreceivables

(1)Detailsoflong-termreceivables

Item31/12/202331/12/2022Rangeofdiscountrateattheendofyear
GrosscarryingamountBaddebtprovisionCarryingamountGrosscarryingamountBaddebtprovisionCarryingamount
Advancestoshareholders(Note1)1,167,470,819.351,167,470.821,166,303,348.533,864,736,673.313,864,736.673,860,871,936.643.65%-8.50%
Guaranteesforfinanceleases10,695,876.0110,695.8810,685,180.1310,659,515.8810,659.5210,648,856.360-5.37%
Landcompensationreceivable(Note2)2,691,932,000.00-2,691,932,000.002,692,032,000.00-2,692,032,000.00-
Others4,996,969.31-4,996,969.31----
Total3,875,095,664.671,178,166.703,873,917,497.976,567,428,189.193,875,396.196,563,552,793.00-
Less:Long-termreceivablesduewithin1year17,468,849.8317,468.8517,451,380.98903,128,422.35903,128.42902,225,293.93-
Long-termreceivablesdueafter1year3,857,626,814.841,160,697.853,856,466,116.995,664,299,766.842,972,267.775,661,327,499.07-

Note1:ItmainlyrepresentstheaggregateprincipalandinterestreceivablefromPortof

NewcastleandTerminalLinkSAS,equivalenttoRMB921,402,438.00and211,768,361.35,respectively.On14June2018,ChinaMerchantsPortHoldingsCompany("CMPort"),asubsidiaryoftheCompany,providedalong-termloantoPortofNewcastle,whichmaturesin2023andhasbeenextendedto31December2034asstipulatedinanagreemententeredintoduringtheyear.TheloancarriesinterestatarateofweightedaverageinterestrateondebtasdeterminedbylocalauthorityofPortofNewcastleplus0.5%.On31May2023,CMPort,asubsidiaryoftheCompany,providedalong-termloantoTerminalLinkSASformakingadditionalcapitalinjectiontoSaigangprojectandchargedinteresttoTerminalLinkSASataninterestrateof6.15%.Note2:On5November2019,ShantouCMPortGroupCo.,Ltd.("ShantouPort")enteredinto

theContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately370.96mulocatedinZhuchiDeepwaterPortonthesouthofZhongshanEastRoadofShantoushouldbereturnedtoShantouLandReserveCenterbyShantouPort,whichisamountingtoRMB1,558,032,000.00.Amongthem,183.63muoflandandattachedbuildingshavebeentransferredin2019,andtheremaining187.33muoflandandattachedbuildingshavebeentransferredin2020.Asat31December2023,thelandcompensationtotallingRMB1,158,032,000.00hasnotyetbeenrecovered.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

11.Long-termreceivables-continued

(1)Detailsoflong-termreceivables-continuedNote2:-continued

On21August2020,ShantouPortenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithLandReserveCenterofShantouHaojiangDistrict.Pursuanttothecontract,thelandandattachedbuildingsofapproximately

152.34mulocatedinYutianwen,Queshi,HaojiangDistrict,Shantou,shouldbereturnedtoLandReserveCenterofShantouHaojiangDistrictbyShantouPort,whichisamountingtoRMB250,000,000.00.Thetransferofabove-mentionedlandandattachedbuildingswascompletedbefore31December2020.Asat31December2023,thelandcompensationtotallingRMB200,000,000.00hasnotyetbeenrecovered.On22December2020,ShantouPortenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately648.78mulocatedinZhuchiDeepwaterPortofShantoushouldbereturnedtoShantouLandReserveCenterbyShantouPort,whichisamountingtoRMB2,724,876,000.00.Amongthem,320muoflandandattachedbuildingsweretransferredby31December2020,whichisamountingtoRMB1,344,000,000.00,andtheremaining328.78muoflandandattachedbuildingshavenotbeentransferred.Asat31December2023,thelandcompensationtotallingRMB1,333,900,000.00hasnotyetbeenrecovered.

(2)Long-termreceivablesdisclosedbymethodofbaddebtprovision

CHINAMERCHANTSPORTGROUPCO.,LTD.Category

Category31December202331December2022
GrosscarryingamountBaddebtprovisionCarryingamountGrosscarryingamountBaddebtprovisionCarryingamount
AmountProportion(%)AmountProportion(%)AmountProportion(%)AmountProportion(%)
Baddebtprovisionassessedonaportfoliobasis3,875,095,664.67100.001,178,166.700.033,873,917,497.976,567,428,189.19100.003,875,396.190.066,563,552,793.00
Total3,875,095,664.67100.001,178,166.70——3,873,917,497.976,567,428,189.19100.003,875,396.19——6,563,552,793.00

Baddebtprovisionassessedonaportfoliobasis

Name31December2023
AccountsreceivableBaddebtprovisionProportion(%)
A3,875,095,664.671,178,166.700.03
Total3,875,095,664.671,178,166.70——

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

11.Long-termreceivables-continued

(3)Provisionforcreditlossoflong-termreceivables

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemStage1Stage2Stage3Total
12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)
At1January20233,875,396.19--3,875,396.19
Grosscarryingamountoflong-termreceivablesat1January2023
-TransfertoStage2----
-TransfertoStage3----
-ReversetoStage2----
-ReversetoStage1----
Provisionfortheyear921,438.82--921,438.82
Reversalfortheyear-3,618,668.31---3,618,668.31
Charge-offfortheyear----
Write-offfortheyear----
Otherchanges----
At31December20231,178,166.70-1,178,166.70

(4)Detailsofbaddebtprovision

Category1/1/2023Changesfortheyear31/12/2023
ProvisionRecoveryorreversalCharge-offorwrite-offEffectofchangesinthescopeofconsolidation
Advancestoshareholders3,864,736.67921,402.46-3,618,668.31--1,167,470.82
Guaranteesforfinanceleases10,659.5236.36---10,695.88
Landcompensationreceivable------
Others------
Total3,875,396.19921,438.82-3,618,668.31--1,178,166.70

(5)Therearenolong-termreceivableswrittenoffduringtheyear.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

12.Long-termequityinvestments

(1)Detailsoflong-termequityinvestments

CHINAMERCHANTSPORTGROUPCO.,LTD.

Investees

InvesteesAccountingmethod31/12/2022Changesfortheyear31/12/2023Closingbalanceofprovisionforimpairment
IncreaseDecreaseInvestmentincomeunderequitymethodReconciliationofothercomprehensiveincomeOtherequitymovementsCashdividendsorprofitsdeclaredOthersProvisionforimpairmentEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies
I.Jointventures
Euro-AsiaOceangateS.àr.l.Equitymethod2,787,204,745.37--186,208,262.73-847,649,041.64--123,177,188.28--43,254,636.782,045,841,414.96-
PortofNewcastleEquitymethod2,048,681,775.65---10,864,327.20-22,300,558.83----59,506,810.292,075,023,699.91-
OthersEquitymethod4,880,906,534.705,720,923.74-33,913,627.22221,260,745.53-9,322,791.00-1,228,997.17-239,356,160.34--13,061,592.114,837,128,220.35-
Sub-total9,716,793,055.725,720,923.74-33,913,627.22396,604,681.06-879,272,391.47-1,228,997.17-362,533,348.62--115,823,039.188,957,993,335.22-
II.Associates
ShanghaiInternationalPort(Group)Co.,Ltd.(hereinafterreferredtoas"ShanghaiPortGroup")Equitymethod34,171,898,201.17--3,700,844,097.27-15,345,010.77269,871,649.40-914,383,798.30---37,212,885,138.77-
NanshanGroupEquitymethod6,377,197,726.21--214,805,574.6643,279,577.18757,245.35-74,028,000.00---2,767,082.886,559,245,040.52-
TerminalLinkSASEquitymethod6,395,609,168.37--221,059,137.39110,006,179.63--381,826,231.04--108,192,659.856,453,040,914.20-
LiaoningPortCo.,Ltd.("LiaoningPort")（Note）Equitymethod4,021,162,878.74--151,571,456.521,605,319.832,186,919.86-47,236,402.20---5,132,381.494,124,157,791.26359,989,686.74
ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd.Equitymethod7,403,186,521.01--42,538,797.17------7,445,725,318.18-
NingboZhoushanPortCompanyLimited("NingboZhoushan")Equitymethod17,974,630,545.05--1,049,986,813.8520,609,205.32-23,196,655.58-390,875,794.33---18,631,154,114.31-
OthersEquitymethod6,303,815,822.78892,560,547.98-5,123,348.92201,597,028.04-15,914,070.05-191,087.11-128,730,841.44--33,902,072.537,281,916,123.812,344,389.02
Sub-total82,647,500,863.33892,560,547.98-5,123,348.925,582,402,904.90144,241,201.14249,428,071.92-1,937,081,067.31--134,195,268.0187,708,124,441.05362,334,075.76
Total92,364,293,919.05898,281,471.72-39,036,976.145,979,007,585.96-735,031,190.33248,199,074.75-2,299,614,415.93--250,018,307.1996,666,117,776.27362,334,075.76

Note:TheprovisionfortheimpairmentofLiaoningPortismadeinpreviousyears.Noevidenceofimpairmentwasfoundthisyear,andno

impairmenttestwasconducted.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

12.Long-termequityinvestments-continued

(2)Impairmenttestingofsignificantlong-termequityinvestmentsTherecoverableamountisdeterminedatthepresentvalueofexpectedfuturecashflows

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCarryingamountRecoverableamountProjectionperiodKeyparametersforprojectionperiodBasistodeterminetheparametersforprojectionperiodKeyparametersforsteadyperiodBasistodeterminethekeyparametersforsteadyperiod
TerminalLinkSAS(note)6,453,040,914.207,453,973,943.835yearsPre-taxdiscountrate,7.8%~12.2%Thediscountrateisapre-taxdiscountratethatreflectsthespecificrisksoftheunderlyingassetgrouporcombinationofassetgroupsPerpetualgrowthrate,1.559%~5.010%ForwardinflationratepublishedbyBNPParibas

Note:TheTerminalLinkSASAssetGroupconsistsoffiveassetgroupswhicharetestedforimpairmentduringtheyearwithnoimpairment

identified.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

13.Investmentsinotherequityinstruments

(1)Detailsofinvestmentsinotherequityinstruments

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item1/1/2023Changesfortheyear31/12/2023DividendincomerecognizedfortheyearAccumulatedgainsincludedinothercomprehensiveincomeAccumulatedlossesincludedinothercomprehensiveincomeReasonsfordesignationasatfairvaluethroughothercomprehensiveincome
AdditionReductionGainsincludedinothercomprehensiveincomefortheyearLossesincludedinothercomprehensiveincomefortheyearEffectofchangesinthescopeofconsolidation
ChinaOceanShippingAgencyShenzhenCo.,Ltd.144,301,178.28--3,387,985.97--147,689,164.2520,056,500.00134,179,164.25-Itisanon-tradingequityinstrumentinvestment
Others27,644,096.74--33,084.28-215,602.37-17,689,094.749,772,483.91-3,873,283.91-3,128,300.00Itisanon-tradingequityinstrumentinvestment
Total171,945,275.02--3,421,070.25-215,602.37-17,689,094.74157,461,648.1620,056,500.00138,052,448.16-3,128,300.00——

(2)Therearenootherequityinstrumentsderecognizedfortheyear.

ItemAccumulatedgainstransferredtoretainedearningsduetoderecognitionAccumulatedlossestransferredtoretainedearningsduetoderecognitionReasonforderecognition
Others--Changesinthescopeofconsolidation
Total--——

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

14.Othernon-currentfinancialassets

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
FinancialassetsatFVTPL877,576,442.831,745,740,896.41
Including:Investmentsinequityinstruments877,576,442.831,745,740,896.41
Including:AntongHoldingsCo.,Ltd.("AntongHoldings")(Note)-950,321,309.06
QingdaoPortInternationalCo.,Ltd.850,222,729.23767,553,775.66
Others27,353,713.6027,865,811.69

Note:Asat31December2023,theCompanyandZhanjiangZhongliOceanShippingTallyCo.,

Ltd.,asubsidiaryoftheCompany,togetherhold6.83%equityinterestinAntongHoldingsandhasappointedonedirectortoAntongHoldings.Therefore,theCompanyhassignificantinfluenceoverAntongHoldingsandhaschangeditsequityinvestmentinAntongHoldingsfromothernon-currentfinancialassetstolong-termequityinvestmentsinanassociate.

15.Investmentproperties

(1)Investmentpropertiesmeasuredatcost

ItemLanduserightsBuildingsandstructuresTotal
I.Cost
1.At1January2023128,269,825.386,177,602,852.516,305,872,677.89
2.Increasefortheyear8,388,170.3713,843,232.3222,231,402.69
(1)Purchases-1,002,852.621,002,852.62
(2)Transferfromfixedassets-12,840,379.7012,840,379.70
(3)Transferfromintangibleassets8,388,170.37-8,388,170.37
3.Decreasefortheyear---
4.At31December2023136,657,995.756,191,446,084.836,328,104,080.58
II.Accumulateddepreciationandamortization
1.At1January202343,054,991.581,139,127,566.751,182,182,558.33
2.Increasefortheyear4,514,324.10183,032,229.36187,546,553.46
(1)Provisionfortheyear2,571,200.74180,261,875.48182,833,076.22
(2)Transferfromfixedassets-2,770,353.882,770,353.88
(3)Transferfromintangibleassets1,943,123.36-1,943,123.36
3.Decreasefortheyear---
4.At31December202347,569,315.681,322,159,796.111,369,729,111.79
III.Impairmentprovision
1.At1January2023---
2.Increasefortheyear---
3.Decreasefortheyear---
4.At31December2023---
IV.Carryingamount
1.At31December202389,088,680.074,869,286,288.724,958,374,968.79
2.At1January202385,214,833.805,038,475,285.765,123,690,119.56

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

15.Investmentproperties-continued

(2)Investmentpropertieswithoutownershipcertificates

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemCarryingamountat31/12/2023Carryingamountat31/12/2022ReasonsfornotobtainingcertificateoftitleExpectedtimeofcompletion
Buildings,structures,andlanduserights24,363,424.7424,008,665.10SomebuildingsandstructureshavenotyetobtainedcertificatesoflanduserightsThecertificateoftitleisunderway

16.Fixedassets

16.1Summaryoffixedassets

Item31/12/202331/12/2022
Fixedassets28,986,501,937.5932,033,317,707.66
Disposaloffixedassets36,388.768,375.84
Total28,986,538,326.3532,033,326,083.50

16.2Fixedassets

(1)Detailsoffixedassets

ItemPortandterminalfacilitiesBuildingsandstructuresMachineryandequipment,furniture,fixtureandotherequipmentMotorvehiclesandcargoshipsTotal
I.Cost——————————
1.At1January202333,376,255,522.142,027,195,029.0617,467,174,796.882,314,581,094.8355,185,206,442.91
2.Increasefortheyear355,653,533.355,819,641.52946,224,073.2015,977,020.141,323,674,268.21
(1)Purchase37,782,655.5831,964.06322,325,677.2713,660,825.82373,801,122.73
(2)Transferfromdevelopmentexpenditure6,341,635.07-8,723,850.63-15,065,485.70
(3)Transferfromconstructioninprogress311,529,242.701,453,075.86344,378,153.652,316,194.32659,676,666.53
(4)Transferfromright-of-useassets--270,796,391.65-270,796,391.65
(5)Transferfromotheraccounts-4,334,601.60--4,334,601.60
3.Decreasefortheyear2,763,230,873.66261,672,874.021,842,920,457.1760,681,086.424,928,505,291.27
(1)Disposalorretirement42,219,921.6516,064,482.96139,255,106.9252,104,672.51249,644,184.04
(2)Transfertoinvestmentproperties-12,840,379.70--12,840,379.70
(3)Effectofchangesinthescopeofconsolidation2,720,840,274.13232,768,011.361,701,179,778.578,576,413.914,663,364,477.97
(4)Transfertoright-of-useassets170,677.88-2,485,571.68-2,656,249.56
4.Adjustmentstotheamountcarriedforward-1,058,728.12-184,445.1383,718.00-790,564.99
5.Reclassification-57,793,950.5251,434,642.276,359,308.25--
6.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies227,485,569.312,918,280.50164,288,140.6013,423,975.49408,115,965.90
7.At31December202331,137,311,072.501,825,694,719.3316,741,310,306.892,283,384,722.0451,987,700,820.76
II.Accumulateddepreciation——————————
1.At1January202310,720,998,321.19635,722,974.0010,636,302,077.501,095,290,493.8023,088,313,866.49
2.Increasefortheyear963,017,607.2378,532,518.38930,468,443.58108,868,177.012,080,886,746.20
(1)Provision963,017,607.2374,197,916.78837,465,030.34108,868,177.011,983,548,731.36
(2)Transferfromright-of-useassets--93,003,413.24-93,003,413.24
(3)Transferfromotheraccounts-4,334,601.60--4,334,601.60
3.Decreasefortheyear1,131,042,660.0790,575,216.731,243,641,341.4455,932,196.772,521,191,415.01
(1)Disposalorretirement31,267,071.5014,971,013.85121,150,414.2049,154,025.33216,542,524.88
(2)Transfertoinvestmentproperties-2,770,353.88--2,770,353.88
(3)Effectofchangesinthescopeofconsolidation1,099,775,588.5772,833,849.001,122,490,927.246,778,171.442,301,878,536.25
4.Reclassification-1,509,396.69625,422.16883,974.53--
5.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies46,017,171.79713,896.6388,553,012.494,401,121.50139,685,202.41
6.At31December202310,597,481,043.45625,019,594.4410,412,566,166.661,152,627,595.5422,787,694,400.09
III.Impairmentprovision——————————
1.At1January202357,546,986.635,985,164.8542,717.28-63,574,868.76
2.Increasefortheyear138,917,159.593,429,362.627,577,097.23-149,923,619.44
3.Disposalorretirementfortheyear-----
4.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies--5,994.88-5,994.88
5.At31December2023196,464,146.229,414,527.477,625,809.39-213,504,483.08
IV.Carryingamount——————————
1.At31December202320,343,365,882.831,191,260,597.426,321,118,330.841,130,757,126.5028,986,501,937.59
2.At1January202322,597,710,214.321,385,486,890.216,830,830,002.101,219,290,601.0332,033,317,707.66

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

16.Fixedassets-continued

16.2Fixedassets-continued

(2)TheGrouphasnofixedassetsthataretemporarilyidleasat31December2023.

(3)Fixedassetsleasedoutunderoperatingleases

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemCarryingamountat31/12/2023Carryingamountat31/12/2022
Buildingsandstructures190,979,949.85196,480,507.61
Portandterminalfacilities35,709,105.3233,260,157.31
Machineryandequipment,furniture,fixtureandotherequipment5,012,091.767,920,761.45
Total231,701,146.93237,661,426.37

(4)Fixedassetswithoutownershipcertificates

ItemCarryingamountat31/12/2023Carryingamountat31/12/2022Remark
Buildings,structures,portandterminalfacilities1,539,024,375.121,786,308,720.95Thisismainlyduetothefactthatcertainbuildingsandstructureshavenotyetobtainedthelanduserightsofthecorrespondinglandandtheapprovalprocedureshavenotyetbeencompleted.

(5)Detailsoffixedassetsdepreciatedbutstillinuseandtemporarilyidleattheendofthe

year,andfixedassetsdisposedandretiredintheyear:

ItemAmountRemark
Costoffixedassetsfullydepreciatedbutstillinuseattheendoftheyear4,947,824,713.22
Costoffixedassetstemporarilyidleattheendoftheyear-
Fixedassetsdisposedandretiredintheyear:————
Including:Costoffixedassetsdisposedandretiredintheyear249,644,184.04
Netbookvalueoffixedassetsdisposedandretiredintheyear33,101,659.16
Lossondisposalorretirementoffixedassetsintheyear18,876,795.60

(6)ThedetailsoftheGroup'sfixedassetswithrestrictedownershipasat31December2023

aresetoutinNote(VIII)64.

(7)ImpairmenttestingoffixedassetsTherecoverableamountisdeterminedatthepresentvalueofexpectedfuturecashflows

ItemCarryingamountRecoverableamountAmountofimpairmentProjectionperiodKeyparametersforprojectionperiodKeyparametersforsteadyperiodBasistodeterminethekeyparametersforsteadyperiod
ZhoushanRoRoAssetGroup(Note)397,078,829.12208,048,600.00189,030,229.1210yearsPre-taxdiscountrate,12.01%Perpetualgrowthrate,2.20%China'sforwardinflationratepublishedbytheWorldBank
Total397,078,829.12208,048,600.00189,030,229.12————————

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

16.Fixedassets-continued

16.2Fixedassets-continued

(7)Impairmenttestingoffixedassets-continuedNote:ZhoushanRoRoAssetGroupincludefixedassetsandintangibleassets,ofwhichfixed

assetsareimpairedattheamountofRMB147,557,081.15andintangibleassetsareimpairedattheamountofRMB41,473,147.97.

16.3Disposaloffixedassets

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Machineryandequipment,furniture,fixtureandotherequipment36,388.768,375.84
Total36,388.768,375.84

17.Constructioninprogress

(1)Presentationofconstructioninprogress

Item31/12/202331/12/2022
Constructioninprogress2,907,014,186.242,405,872,478.61
Materialsforconstructionoffixedassets2,803,095.227,971,929.03
Total2,909,817,281.462,413,844,407.64

(2)Detailsofconstructioninprogress

Item31/12/202331/12/2022
GrosscarryingamountProvisionforimpairmentCarryingamountGrosscarryingamountProvisionforimpairmentCarryingamount
Portandterminalfacilities2,380,800,758.33-2,380,800,758.331,991,321,268.14-1,991,321,268.14
Infrastructure252,638,193.22-252,638,193.22201,444,537.67-201,444,537.67
Berthsandyards178,174,354.90-178,174,354.9018,728,577.14-18,728,577.14
Cargoshipsunderconstruction1,726,548.68-1,726,548.68---
Others93,674,331.11-93,674,331.11194,378,095.66-194,378,095.66
Total2,907,014,186.24-2,907,014,186.242,405,872,478.61-2,405,872,478.61

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

17.Constructioninprogress-continued

(3)Thetoptenbalancesofconstructioninprogress

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemBudgetamount31/12/2022IncreasefortheyearTransfertofixedassetsOtherdecreasesfortheyearEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies31/12/2023Proportionofaccumulatedconstructioninvestmentinbudget(%)Constructionprogress(%)AmountofaccumulatedcapitalizedinterestIncluding:CapitalizedinterestfortheyearInterestcapitalizationrateforthecurrentyear(%)Capitalsource
ReconstructionprojectofHIPGcontainer,oilterminalandtankarea2,817,485,265.02817,365,084.37---13,860,209.69831,225,294.0657.6857.68942,888.05--Ownfundsandloans
PhaseIprojectforthestuffinganddestuffingserviceareaofBaomanPortArea,ZhanjiangPort683,007,100.00269,045,354.01227,860,991.66---496,906,345.6772.7572.7529,908,415.8210,355,373.623.50Ownfundsandloans
GeneralcargoterminalprojectatDonghaiIslandPortAreaofZhanjiangPort905,348,400.00448,877,835.0467,384.80---448,945,219.8449.5949.5944,364,372.49--Ownfundsandloans
PhaseIexpansionprojectforthecontainerterminalatBaomanPortArea,ZhanjiangPort2,342,775,800.00191,463,684.5737,101,454.78---228,565,139.359.769.761,011,370.6057,750.003.30Ownfundsandloans
TCPtire-typecontainercraneproject211,491,137.0816,222,603.92138,123,291.506,430,507.98-6,438,252.61154,353,640.0576.0276.02---Ownfunds
SubsequentconstructionworkinprogressatHIPGterminal84,992,400.0028,006,814.8656,051,165.8316,985,386.703,212,066.78657,829.5264,518,356.7399.6799.67---Ownfunds
BacklandreclamationprojectonHaidaganBulkYardandSupportingFacilitiesandLiquidBulkBerth82,400,000.0060,576,339.801,674,220.80---62,250,560.6075.5575.55---Ownfunds
Installationprojectofbucket-wheelstackerreclaimer,ZhanjiangPort74,800,000.0051,551,526.93837,359.25---52,388,886.1870.0470.042,671,994.44837,359.253.50Ownfundsandloans
AMPLIACAOPLATAFORMASREEFER71,524,388.49-53,555,672.306,045,103.81-1,479,878.7048,990,447.1976.9576.95---Ownfunds
DachanwanphaseIIproject918,521,317.2324,872,917.7221,319,643.76---46,192,561.485.035.03---Ownfunds
Total8,192,345,807.821,907,982,161.22536,591,184.6829,460,998.493,212,066.7822,436,170.522,434,336,451.15————78,899,041.4011,250,482.87——

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

17.Constructioninprogress-continued

(4)Materialsforconstructionoffixedassets

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/202331/12/2022
GrosscarryingamountProvisionforimpairmentCarryingamountGrosscarryingamountProvisionforimpairmentCarryingamount
Materialsforconstructionoffixedassets2,803,095.22-2,803,095.227,971,929.03-7,971,929.03

(5)ImpairmenttestingofconstructioninprogressTherecoverableamountisdeterminedatthepresentvalueofexpectedfuturecashflows

ItemCarryingamountRecoverableamountAmountofimpairmentProjectionperiodKeyparametersforprojectionperiodKeyparametersforsteadyperiodBasistodeterminethekeyparametersforsteadyperiod
HIPGAssetGroup9,116,161,496.4951,365,680,683.52-5yearsPre-taxdiscountrate,7.55%Perpetualgrowthrate,7%Consulttheexpectedgrowthrateoftheindustry
Total9,116,161,496.4951,365,680,683.52-

18.Right-of-useassets（

）Detailsofright-of-useassets

ItemPortandterminalfacilitiesBuildingsandstructuresMachineryandequipment,furniture,fixtureandotherequipmentLanduserightsMotorvehicles,cargoshipsandothersTotal
I.Cost————————————
1.At1January20237,414,725,804.49174,746,285.16361,404,132.032,833,468,093.1515,456,422.1210,799,800,736.95
2.Increasefortheyear126,996,462.1647,184,328.345,908,348.40314,033,487.985,119,357.99499,241,984.87
(1)Purchase126,825,784.2847,184,328.343,422,776.72314,033,487.985,119,357.99496,585,735.31
(2)Others170,677.88-2,485,571.68--2,656,249.56
3.Decreasefortheyear83,575,652.8014,851,420.78277,492,044.42-8,251,408.84384,170,526.84
(1)Terminationoflease83,575,652.8013,723,966.876,695,652.77-8,251,408.84112,246,681.28
(2)Decreaseduetochangeinthescopeofconsolidation-1,127,453.91---1,127,453.91
(3)Transfertofixedassets--270,796,391.65--270,796,391.65
4.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies104,207,338.952,294,309.58594,918.9549,298,269.33-156,394,836.81
5.At31December20237,562,353,952.80209,373,502.3090,415,354.963,196,799,850.4612,324,371.2711,071,267,031.79
II.Accumulateddepreciation————————————
1.At1January2023940,705,350.3059,749,857.79119,454,049.67326,945,093.9810,304,162.881,457,158,514.62
2.Increasefortheyear262,536,189.4924,038,515.6820,649,140.4046,180,031.374,099,083.51357,502,960.45
(1)Provision262,536,189.4924,038,515.6820,649,140.4046,180,031.374,099,083.51357,502,960.45
3.Decreasefortheyear80,201,819.6114,365,794.0099,372,627.07-8,251,408.84202,191,649.52
(1)Terminationoflease80,201,819.6113,538,700.806,369,213.83-8,251,408.84108,361,143.08
(2)Transfertofixedassets--93,003,413.24--93,003,413.24
(3)Decreaseduetochangeinthescopeofconsolidation-827,093.20---827,093.20
4.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies10,472,990.85495,286.98558,342.855,602,274.34-17,128,895.02
5.At31December20231,133,512,711.0369,917,866.4541,288,905.85378,727,399.696,151,837.551,629,598,720.57
III.Impairmentprovision————————————
1.At1January2023------
2.Increasefortheyear------
3.Decreasefortheyear------
4.At31December2023------
IV.Carryingamount————————————
1.At31December20236,428,841,241.77139,455,635.8549,126,449.112,818,072,450.776,172,533.729,441,668,311.22
2.At1January20236,474,020,454.19114,996,427.37241,950,082.362,506,522,999.175,152,259.249,342,642,222.33

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

19.Intangibleassets

(1)Detailsofintangibleassets

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemLanduserightsTerminalmanagementrightsOthersTotal
I.Cost————————
1.At1January202315,314,517,408.679,033,916,504.041,500,585,297.6825,849,019,210.39
2.Increasefortheyear4,829,976.8770,899,565.34210,116,533.73285,846,075.94
(1)Purchase4,707,118.8670,899,565.34204,248,227.46279,854,911.66
(2)TransferfromR&Dexpenditure--279,255.32279,255.32
(3)Otherincrease122,858.01-5,589,050.955,711,908.96
3.Decreasefortheyear1,391,040,555.28-97,786,230.031,488,826,785.31
(1)Disposal117,561,406.55-12,263,934.48129,825,341.03
(2)Effectofchangesinthescopeofconsolidation1,242,052,238.36-85,144,042.521,327,196,280.88
(3)Transfertoinvestmentproperties8,388,170.37--8,388,170.37
(4)Otherdecrease23,038,740.00-378,253.0323,416,993.03
4.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies3,238,376.56614,328,132.1555,732,509.00673,299,017.71
5.At31December202313,931,545,206.829,719,144,201.531,668,648,110.3825,319,337,518.73
II.Accumulatedamortization————————
1.At1January20234,096,452,545.661,897,700,710.79562,263,716.236,556,416,972.68
2.Increasefortheyear337,512,145.19265,684,203.8083,683,325.73686,879,674.72
(1)Provision337,512,145.19265,684,203.8083,683,325.73686,879,674.72
(2)Otherincrease----
3.Decreasefortheyear136,784,782.90-70,286,984.40207,071,767.30
(1)Disposal24,240,728.18-12,642,187.5136,882,915.69
(2)Transfertoinvestmentproperties1,943,123.36--1,943,123.36
(3)Effectofchangesinthescopeofconsolidation110,600,931.36-57,644,796.89168,245,728.25
(4)Otherdecrease----
4.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies1,454,778.05131,353,162.9220,232,242.87153,040,183.84
5.At31December20234,298,634,686.002,294,738,077.51595,892,300.437,189,265,063.94
III.Impairmentprovision————————
1.At1January202315,537,122.10--15,537,122.10
2.Increasefortheyear28,662,259.14-12,810,888.8341,473,147.97
3.Decreasefortheyear----
4.At31December202344,199,381.24-12,810,888.8357,010,270.07
IV.Carryingamount————————
1.At31December20239,588,711,139.587,424,406,124.021,059,944,921.1218,073,062,184.72
2.At1January202311,202,527,740.917,136,215,793.25938,321,581.4519,277,065,115.61

(2)Landuserightswithoutownershipcertificatesasat31December2023:

ItemCarryingamountat31/12/2023Carryingamountat31/12/2022
Landuserights(Note)2,374,139,495.632,511,195,386.58

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

19.Intangibleassets-continued

(2)Landuserightswithoutownershipcertificatesasat31December2023:-continuedNote:At31December2023,thelanduserightswithoutownershipcertificatesmainlyrepresent

thelanduserightsforberthandstorageyardwithinChiwanPortareaobtainedbytheGroupfromNanshanGroup,withanareaof691,828.56m

,andDachanwanPortareaPhaseIIlanduserightsobtainedbyASJ,thecostsofwhichareRMB1,179,949,191.44andRMB918,521,317.23respectively.ThelanduserightsforberthandstorageyardwithinChiwanPortareaobtainedbytheGroupfromNanshanGrouprepresentthecapitalcontributionfromNanshanGrouptotheCompanyuponrestructuringoftheCompany,whiletheremaininglanduserightsareobtainedfromNanshanGroupbywayoflong-termlease.Uptodate,NanshanGrouphasnotyetobtainedthelanduserightsinrespectofthelandswithinChiwanwatershed,includingaforementionedcapitalcontributionandlandleasetotheGroup,therefore,theGroupcannotobtaintheownershipcertificateforrelevantlandandbuildingsonsuchland.TheCompany'smanagementunderstoodthatNanshanGroupisnegotiatingwithrelevantgovernmentdepartmentsregardingthehistoricalissues,andthedatewhentheGroupcanobtaintheownershipcertificateofrelevantlandandbuildingsonsuchlandcannotbeestimatedreliably.ASJisnegotiatingwithrelevantgovernmentdepartmentsforhandlingtheownershipcertificatesofDachanwanPortareaPhaseIIlanduserightsobtainedbyit.

(3)Impairmenttestingofintangibleassets

RefertoNote(VIII),16.2(7)fordetails.

20.Goodwill

(1)Detailsofgoodwill

CHINAMERCHANTSPORTGROUPCO.,LTD.

Investee

InvesteeSources31/12/2022IncreaseDecreaseEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies31/12/2023
TCPAcquisitionofequity2,716,399,522.38--270,072,549.762,986,472,072.14
MegaShekouContainerTerminalsLimited("MegaSCT")Acquisitionofequity1,815,509,322.42---1,815,509,322.42
CMPortAcquisitionofequity993,992,000.00---993,992,000.00
ShantouPortAcquisitionofequity552,317,736.65---552,317,736.65
ZhanjiangPortAcquisitionofequity418,345,307.68---418,345,307.68
ShenzhenMawanProjectAcquisitionofequity408,773,001.00---408,773,001.00
NingboDaxieContainerTerminalCo.,Ltd.(formerlyknownasNingboDaxieChinaMerchantsInternationalTerminalsCo.Ltd.)("NingboDaxie")Consolidationofassociateintosubsidiary188,497,194.41-188,497,194.41--
OthersAcquisitionofequity288,255,850.88---288,255,850.88
Sub-total——7,382,089,935.42-188,497,194.41270,072,549.767,463,665,290.77
Provisionforimpairmentofgoodwill——970,663,044.33---970,663,044.33
Total——6,411,426,891.09-188,497,194.41270,072,549.766,493,002,246.44

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

20.Goodwill-continued

(2)Provisionforimpairmentofgoodwill

CHINAMERCHANTSPORTGROUPCO.,LTD.Investee

Investee31/12/2022ProvisionDecreaseEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies31/12/2023
ZhanjiangPort418,345,307.68---418,345,307.68
ShantouPort552,317,736.65---552,317,736.65
Total970,663,044.33---970,663,044.33

(3)Informationofassetgroupsorportfolioofassetgroupstowhichthegoodwillbelongs

NameCompositionofassetgroupsorportfolioofassetgroupstowhichitisallocatedanditsbasisIsitconsistentwiththatoftheprioryear?
TCPTheGroupidentifiesassetgroupsorportfolioofassetgroupsbasedontheirabilitytogeneratecashinflowsindependently,themannerinwhichtheymanagetheirproductionandoperatingactivities(primarilybygeographicregion),andtheunifieddecision-makingonuseordisposalofassets.Yes
MegaSCTYes
CMPortYes
ShantouPortYes
ZhanjiangPortYes
ShenzhenMawanProjectYes
OthersYes

Whentestingthegoodwillforimpairment,theGroupcomparesthecarryingamountofrelatedassetgroupsandportfolioofassetgroups(includinggoodwill)withtherecoverableamount.Iftherecoverableamountislessthanthecarryingamount,thedifferenceisincludedinprofitorlossfortheperiod.TheGroupdeterminestherecoverableamountoftheassetgroupsandportfolioofassetgroupsthatgenerategoodwillatfairvaluelesscostofdisposaloratpresentvalueofexpectedfuturecashflows.Thefairvalueisdeterminedusingmarketapproach.Thepresentvalueofcashflowsisestimatedbasedontheforecastofcashflowsfor5yearsto25yearsdetailedforecastperiodandsubsequentforecastperiod.Theestimatedfuturecashflowsforthedetailedforecastperiodarebasedonthebusinessplanestablishedbythemanagement;theexpectedfuturecashflowsforthesubsequentforecastperiodaredeterminedinconjunctionwiththelevelofthefinalyearofthedetailedforecastperiod,combinedwiththeGroup'sbusinessplans,industrytrendsandinflationrates.Thegrowthrateadoptedwillnotexceedthelong-termaveragegrowthrateofthecountrywheretheassetgroupsandportfolioofassetgroupsarelocated.ThekeyassumptionsusedbytheGroupinestimatingthepresentvalueoffuturecashflowsincludegrowthrateanddiscountrateetc.Thepre-taxdiscountrateandthegrowthrateforsubsequentforecastperiodadoptedin2023are10.97%-21.99%and2.20%-3.02%respectively.TheparametersofkeyassumptionsdeterminedbytheGroup'smanagementareinlinewiththeGroup'shistoricalexperienceorexternalsourceofinformation.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

20.Goodwill-continued

(4)SpecificmethodfordeterminationofrecoverableamountTherecoverableamountisdeterminedatthepresentvalueofexpectedfuturecashflows

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemProjectionperiodKeyparametersforprojectionperiodBasistodeterminethekeyparametersforprojectionperiodKeyparametersforsteadyperiodBasistodeterminethekeyparametersforsteadyperiod
MegaSCT5years1.Pre-taxdiscountrate:12.23%2.Averagerevenuegrowthrateforprojectionperiod:3.35%3.Averageprofitmarginforprojectionperiod:37.58%1.Thediscountrateisapre-taxdiscountratethatreflectsthespecificrisksoftheunderlyingassetgrouporcombinationofassetgroups.2.Averagerevenuegrowthrateforprojectionperiodandaverageprofitmarginforprojectionperiod:Takingintoaccountcomprehensivefactorssuchaseachcompany'sbusinessoperations,performance,keyfinancialindicatorsandmarketenvironment1.Pre-taxdiscountrate:12.23%2.Averagerevenuegrowthrateforsteadyperiod:2.20%3.Averageprofitmarginforsteadyperiod:42.89%1.Thediscountrateisapre-taxdiscountratethatreflectsthespecificrisksoftheunderlyingassetgrouporcombinationofassetgroups.2.Averagerevenuegrowthrateforsteadyperiod:China'sforwardinflationratepublishedbytheWorldBank(TCPreferstoBrazil'sforwardinflationratepublishedbytheWorldBank)3.Averageprofitmarginforsteadyperiod:Takingintoaccountcomprehensivefactorssuchaseachcompany'sbusinessoperations,performance,keyfinancialindicatorsandmarketenvironment
TCP25years1.Pre-taxdiscountrate:21.99%2.Averagerevenuegrowthrateforprojectionperiod:5.36%3.Averageprofitmarginforprojectionperiod:53.33%1.Pre-taxdiscountrate:21.99%2.Averagerevenuegrowthrateforsteadyperiod:3.02%3.Averageprofitmarginforsteadyperiod:54.81%

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

21.Long-termprepaidexpensesPresentationoflong-termprepaidexpenses:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2022EffectofchangesinthescopeofconsolidationIncreasefortheyearAmortizationintheyearOtherdecreases31/12/2023Reasonforotherdecreases
Tongguchannelwideningproject(Note1)455,446,696.75--14,449,031.76-440,997,664.99——
WestpublicchannelwideningprojectatWestportarea(Note2)249,437,402.87--9,919,028.641,538,430.04237,979,944.19Reclassifytodredgingproject
Dredgingproject69,760,419.37-26,871,419.2817,342,403.61-79,289,435.04——
RelocationprojectofNanhaiRescueBureau37,554,111.50--1,107,368.40-36,446,743.10——
Expendituresfortheimprovementofleasedfixedassets20,631,173.37-3,920,837.532,374,618.5882,477.8722,094,914.45Transfertoinventoryaccount
Others153,527,101.04-8,905,237.7280,141,950.8847,779,010.68-176,984,803.52——
Total986,356,904.90-8,905,237.72110,934,207.6992,971,461.671,620,907.91993,793,505.29——

Note1:ThisrepresentstheGroup'sactualexpensesonShenzhenWesternPortAreaTonggu

Channel210-270MWideningProject.AccordingtorelevantresolutionsofShenzhenMunicipalGovernment,theenterpriseandgovernmentshallbear60%and40%oftheexpensesincurredforthe210-240Mwideningproject,and50%and50%oftheexpensesincurredforthe240-270Mwideningprojectrespectively.TheCompany'ssubsidiaryhasincludedtheexpensesondeepeningthechannelintheitemof"long-termprepaidexpenses",andamortizedsuchexpensesovertheexpectedusefullivesofthetwowideningprojectsof35and40yearsusingstraight-linemethodsincethecompletionofeachprojectin2008and2019,respectively.Note2:ThisrepresentstheGroup'sactualexpensesonShenzhenWestPortAreaPublicChannel

WideningProject,ofwhichthewideningof240-270Minthefirstsectionwascompletedon1June2019andthewideningof240-270Minthesecondandthirdsectionswascompletedon5November2020.AccordingtorelevantresolutionsofShenzhenMunicipalGovernment,theenterpriseandgovernmentshallbear50%and50%oftheexpensesincurredfortheprojectrespectively.TheCompany'ssubsidiaryhasincludedtheexpensesondeepeningthechannelintheitemof"long-termprepaidexpenses",andamortizedsuchexpensesovertheexpectedusefullifeof40yearsusingstraight-linemethodsincethecompletionofeachsectionofthechannelwideningproject.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

22.Deferredincometax

(1)Deferredtaxassetsbeforeoffsetting

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/202331/12/2022(Restated)
DeductibletemporarydifferencesDeferredtaxassetsDeductibletemporarydifferencesDeferredtaxassets
Leaseliabilities812,240,581.51218,145,932.73582,736,512.28164,262,934.19
Unrealizedprofit749,254,178.80183,009,204.87756,772,558.79184,729,651.97
Terminaloperatingright714,547,999.18214,364,399.78702,633,317.13210,789,995.14
Depreciationoffixedassets162,352,087.7940,588,021.95154,724,225.4935,753,675.92
Provisionforcreditloss151,277,238.5132,071,347.97190,727,520.0335,544,695.31
Accruedandunpaidwages126,623,677.1927,883,418.55161,026,788.2935,802,355.38
Provisions85,590,059.4129,100,620.2035,365,156.4312,024,153.19
Deductiblelosses43,785,085.0910,946,271.43182,211,924.3440,193,891.36
Deferredincome39,203,663.569,101,072.4936,723,054.568,709,144.22
Amortizationofcomputersoftware7,345,031.201,836,257.809,291,532.772,322,883.19
Provisionforimpairmentofassets6,698,523.931,555,485.915,507,073.161,376,768.29
Organizationcosts1,028,867.64257,216.913,498,150.00874,537.50
Others70,987,022.4118,570,226.5157,124,137.7515,595,505.07
Total2,970,934,016.22787,429,477.102,878,341,951.02747,980,190.73

(2)Deferredtaxliabilitiesbeforeoffsetting

Item31/12/202331/12/2022(Restated)
TaxabletemporarydifferencesDeferredtaxliabilitiesTaxabletemporarydifferencesDeferredtaxliabilities
Withholdingdividendincometax41,551,214,196.812,840,377,397.2237,565,601,815.132,568,624,605.88
Leasebusiness1,017,854,192.39282,003,933.26783,000,219.10224,483,346.07
Terminaloperatingright307,617,857.0192,285,357.10302,488,503.9290,746,551.18
Fairvalueadjustmentofassetsacquiredfrombusinesscombination4,880,293,882.181,292,552,086.647,755,954,464.861,762,190,010.27
Depreciationoffixedassets975,166,842.96272,103,476.861,119,997,714.31280,579,814.18
Changesinfairvalueofothernon-currentfinancialassets408,104,042.7699,604,068.18330,012,225.7682,503,056.44
Changesinfairvalueofinvestmentsinotherequityinstruments134,179,164.2433,544,791.03130,791,178.2832,697,794.57
Valuationofheld-for-tradingfinancialassetsandliabilities2,161,643.84540,410.96--
Others1,045,132,765.59118,992,583.191,169,095,183.52126,676,026.52
Total50,321,724,587.785,032,004,104.4449,156,941,304.885,168,501,205.11

(3)Deferredtaxassetsorliabilitiesthatarepresentedatthenetamountafteroffsetting

ItemOffsetamountofdeferredtaxassetsandliabilitiesattheendofthecurrentyearBalanceofdeferredtaxassetsorliabilitiesafteroffsettingattheendofthecurrentyearOffsetamountofdeferredtaxassetsandliabilitiesattheendoftheprioryear(Restated)Balanceofdeferredtaxassetsorliabilitiesafteroffsettingattheendoftheprioryear(Restated)
Deferredtaxassets-372,366,000.07415,063,477.03-313,481,369.78434,498,820.95
Deferredtaxliabilities-372,366,000.074,659,638,104.37-313,481,369.784,855,019,835.33

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

22.Deferredincometax-continued

(4)Deductibletemporarydifferencesanddeductiblelossesforwhichdeferredtaxassetsare

notrecognized

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Deductibletemporarydifferences966,126,806.19930,204,772.41
Deductiblelosses2,334,799,700.502,112,659,943.00
Total3,300,926,506.693,042,864,715.41

TheGrouprecognizesdeferredincometaxassetstotheextentoffuturetaxableincomethatislikelytobeobtainedtooffsetthedeductibletemporarydifferencesanddeductiblelosses.Fortheexcessofdeductibletemporarydifferencesanddeductiblelossesoverfuturetaxableincome,nodeferredtaxassetsarerecognized.

(5)Deductiblelossesforwhichdeferredtaxassetsarenotrecognizedwillbeexpiredinthe

followingyears:

Year31/12/202331/12/2022
2023-515,101,493.80
2024483,200,212.68488,358,232.03
2025375,189,307.19375,208,491.05
2026110,765,532.94112,756,494.15
2027612,819,518.30600,178,442.73
2028752,825,129.39-
Deductiblelossesdueafter2029-21,056,789.24
Total2,334,799,700.502,112,659,943.00

23.Othernon-currentassets

Item31/12/202331/12/2022
Advancesforthechannelproject(Note)1,013,508,448.79989,752,762.75
Prepaymentsforfixedassets144,896,516.09117,094,834.14
Prepaymentsforterminalfranchise29,807,737.1627,493,116.21
Others5,943,287.5852,448,665.69
total1,194,155,989.621,186,789,378.79

Note:ThisrepresentsthattheCompany'ssubsidiaryZhanjiangPort,uponitsreorganizationinto

ajointstockcompanyin2007,signedtheChannelArrangementAgreementwithState-ownedAssetsSupervisionandAdministrationCommissionofZhanjiang("ZhanjiangSASAC")andChinaMerchantsInternationalTerminal(Zhanjiang)Co.,Ltd.Accordingtotheagreement,thechannelbelongstoZhanjiangSASAC,therefore,theGrouppresentedtheadvancesofchannelprojectthatshouldberepaidbyZhanjiangSASACasothernon-currentassets.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

24.Short-termborrowings

(1)Classificationofshort-termborrowings

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Creditborrowings15,593,937,427.867,149,322,782.85
Guaranteedborrowings(Note1)110,096,708.33-
Mortgageborrowings(Note2)10,011,152.7815,015,583.33
Total15,714,045,288.977,164,338,366.18

Note1:TheborrowingsareguaranteedbyGuangdongZhanjiangPortLogisticsCo.,Ltd.("Zhanjiang

PortLogistics"),asubsidiaryoftheCompany.Note2:Itrepresentstheshort-termborrowingsobtainedbyZhoushanRoRo,asubsidiaryofthe

Company,withthelanduserightsandbuildingsonthelandheldbyitasthecollateral.

(2)Asat31December2023,theGrouphasnoshort-termborrowingsthatareoverdue.

25.Notespayable

Category31/12/202331/12/2022
Bankacceptance64,280,925.21-
Commercialacceptance9,180,240.61-
Total73,461,165.82-

26.Accountspayable

Item31/12/202331/12/2022
Servicefee246,400,717.07299,350,272.24
Materialpurchasefee117,170,447.10132,460,163.17
Constructionfee100,672,753.10110,687,325.42
Equipmentpayments52,762,565.7487,445,302.02
Rentalfee13,591,518.238,304,019.32
Others161,167,136.01172,902,315.49
Total691,765,137.25811,149,397.66

(1)Agingofaccountspayable

Aging31/12/202331/12/2022
AmountProportion(%)AmountProportion(%)
Within1year617,528,837.7689.27710,976,970.2887.65
1-2years26,506,267.623.8347,038,049.655.80
2-3years30,254,034.464.3726,667,189.693.29
Morethan3years17,475,997.412.5326,467,188.043.26
Total691,765,137.25100.00811,149,397.66100.00

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

26.Accountspayable-continued

(2)Significantaccountspayableagedmorethan1year

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofentity

Nameofentity31/12/2023AgingReasonforoutstandingornotbeingcarriedforward
QuanzhouAntongLogisticsCo.,Ltd.16,948,161.452-3yearsTobepaiduponconfirmationbybothparties.

27.Receiptsinadvance

Item31/12/202331/12/2022
Rentalfeereceivedinadvance8,993,727.316,205,443.31
Managementfeereceivedinadvance2,659,217.99-
Others5,734,592.063,681,088.28
Total17,387,537.369,886,531.59

(1)Agingofreceiptsinadvance

Aging31/12/202331/12/2022
AmountProportion(%)AmountProportion(%)
Within1year17,387,537.36100.009,884,079.5999.98
1-2years----
2-3years----
Morethan3years--2,452.000.02
Total17,387,537.36100.009,886,531.59100.00

(2)Asat31December2023,theGrouphasnosignificantreceiptsinadvanceagedmorethan

oneyear.

(3)Asat31December2023,theGrouphasnoreceiptsinadvancewithsignificantchangesin

carryingamount.28Contractliabilities

(1)Detailsofcontractliabilities

Item31/12/202331/12/2022
Portchargesreceivedinadvance84,869,413.4555,045,635.27
Servicefeereceivedinadvance26,198,333.0759,729,035.75
Warehousingfeereceivedinadvance3,204,091.873,048,588.90
Others27,808,262.6124,076,291.11
Total142,080,101.00141,899,551.03

(2)Therearenosignificantchangesincarryingamountofcontractliabilitiesduringtheyear.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

28Contractliabilities-continued

(3)Asat31December2023,theGrouphasnosignificantcontractliabilitiesagedmorethan

oneyear.

(4)QualitativeanalysisofcontractliabilitiesContractliabilitiesmainlyrepresenttheamountreceivedbytheGroupfortheportservicesprovidedtocustomers.Thepaymentiscollectedaccordingtothetimeagreedinthecontract.TheGrouprecognizescontractrevenuebasedontheprogressofthecontract.ThecontractliabilitieswillberecognizedasrevenueaftertheGroupfulfilsitsperformanceobligations.

(5)Revenuerecognizedintheyearandincludedinthecarryingamountofcontractliabilities

atthebeginningoftheyearAnamountofRMB91,180,530.23includedinthecarryingamountofcontractliabilitiesatthebeginningof2023hasbeenrecognizedasrevenueinthecurrentyear,includingcontractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromthecontractofservicefeesreceivedinadvanceamountingtoRMB24,937,772.66,contractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromthecontractofportchargesreceivedinadvanceamountingtoRMB50,149,195.64,contractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromcontractofwarehousingfeereceivedinadvanceamountingtoRMB3,048,588.90,andcontractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromothercontractsamountingtoRMB13,044,973.03.

29.Employeebenefitspayable

(1)Presentationofemployeebenefitspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2022EffectofchangesinthescopeofconsolidationIncreasefortheyearDecreasefortheyear31/12/2023
1.Short-termbenefits921,533,425.99-35,636,773.693,243,766,906.073,219,390,381.18910,273,177.19
2.Post-employmentbenefits-definedcontributionplan13,383,514.93-4,201,592.85351,623,760.71352,451,682.768,354,000.03
3.Terminationbenefits2,423,282.78-5,158,916.087,582,198.86-
4.Otherbenefitsduewithin1year--4,053,449.564,053,449.56-
5.Others-505,505.57-631,121.045,145,597.174,671,541.13-662,570.57
Total936,834,718.13-40,469,487.583,609,748,629.593,588,149,253.49917,964,606.65

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

29.Employeebenefitspayable-continued

(2)Presentationofshort-termbenefits

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2022EffectofchangesinthescopeofconsolidationIncreasefortheyearDecreasefortheyear31/12/2023
1.Wagesandsalaries,bonuses,allowancesandsubsidies897,442,262.83-33,339,184.532,606,547,914.192,586,737,715.36883,913,277.13
2.Staffwelfare--169,221,198.72169,221,198.72-
3.Socialinsurancecontributions10,545,539.44-891,098.34204,136,593.97199,978,211.0413,812,824.03
Including:Medicalinsurance8,631,543.96-836,747.58173,636,271.40170,223,587.1111,207,480.67
Workinjuryinsurance53,916.77-54,350.7617,211,021.9617,210,587.97-
Others1,860,078.71-13,289,300.6112,544,035.962,605,343.36
4.Housingfunds-95,060.47274.00198,040,769.72198,042,657.10-96,673.85
5.Labourunionandemployeeeducationfunds13,642,129.96-1,406,764.8250,814,109.8750,314,255.4012,735,219.61
6.Othershort-termbenefits-1,445.77-15,006,319.6015,096,343.56-91,469.73
Total921,533,425.99-35,636,773.693,243,766,906.073,219,390,381.18910,273,177.19

(3)Presentationofdefinedbenefitplans

Item31/12/2022EffectofchangesinthescopeofconsolidationIncreasefortheyearDecreasefortheyear31/12/2023
I.Basicpension9,761,086.14-1,383,333.72258,989,715.66259,128,522.958,238,945.13
II.Unemploymentinsurance49,026.91-49,434.916,077,524.716,077,116.71-
III.Enterpriseannuity3,573,401.88-2,768,824.2286,556,520.3487,246,043.10115,054.90
Total13,383,514.93-4,201,592.85351,623,760.71352,451,682.768,354,000.03

TheCompanyanditsdomesticsubsidiariesparticipateinthepensioninsuranceandunemploymentinsuranceplanestablishedbygovernmentinstitutionsasrequired.Accordingtosuchplans,theGroupcontributesinproportiontothelocalgovernment.TheGrouphasestablishedanenterpriseannuitysystem,andaccruesandpaystheenterpriseannuityaccordingtotheenterpriseannuitysystemoftheCompanyanditsdomesticsubsidiaries.Inadditiontoabovecontributions,theGrouphasnofurtherpaymentobligations.Thecorrespondingexpensesareincludedinprofitorlossfortheperiodorthecostofrelatedassetswhenincurred.

30.Taxespayable

Item31/12/2022EffectofchangesinthescopeofconsolidationProvisionfortheyearPaymentfortheyearEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies31/12/2023
Enterpriseincometax804,846,345.79-3,002,884.361,123,434,326.281,108,672,570.983,089,589.10819,694,805.83
VAT30,032,002.80-613,554.49205,611,948.35215,161,352.07352,761.8720,221,806.46
Othertaxes83,054,820.50-4,006,342.06522,874,894.04522,097,230.123,310,817.8583,136,960.21
Total917,933,169.09-7,622,780.911,851,921,168.671,845,931,153.176,753,168.82923,053,572.50

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

31.Otherpayables

(1)Presentationofotherpayables

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Dividendspayable111,897,214.2792,374,921.29
Otherpayables1,542,724,955.751,663,510,336.97
Total1,654,622,170.021,755,885,258.26

(2)Dividendspayable

Item31/12/202331/12/2022
Ordinarysharedividends111,897,214.2792,374,921.29
Including:ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.(Note)77,734,806.4620,000,000.00
DalianPortContainerDevelopmentCo.,Ltd.("DalianPortContainer")16,160,696.6114,000,000.00
DalianPortJifaLogisticsCo.,Ltd.9,575,104.423,000,000.00
YingkouPortGroupCo.,Ltd.("YingkouPortGroup")5,372,456.78-
YiuLianDockyardsLimited2,334,150.00-
QingdaoPort(Group)Co.,Ltd.720,000.00-
ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd.-41,400,234.06
SriLankaPortsAuthority-10,446,900.00
DalianCityConstructionInvestmentGroupCo.,Ltd(formerlyknownasDalianCityInvestmentHoldingGroupCo.,Ltd.)-3,527,787.23

Note:Asat31December2023,theGrouphasnosignificantdividendspayableagedmorethan

oneyear.

(3)Otherpayables(a)Disclosureofotherpayablesbynature

Item31/12/202331/12/2022
Amountpayableforconstructionandqualitywarranty575,941,472.21643,816,817.51
Guaranteesanddeposits246,316,308.32221,628,920.81
Accruedexpenses139,920,340.25190,048,988.98
Customerdiscount129,780,042.30164,622,341.62
Portconstructionandsecurityfee27,939,655.2336,697,168.04
Balanceofpaymentfortransferoflanduserights-11,295,700.00
Others422,827,137.44395,400,400.01
Total1,542,724,955.751,663,510,336.97

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

31.Otherpayables-continued

(3)Otherpayables-continued(b)Significantotherpayablesagedmorethanoneyearorpastdue

CHINAMERCHANTSPORTGROUPCO.,LTD.Companyname

CompanynameAmountpayableAgingReasonforbeingoutstanding
TransportBureauofShenzhenMunicipality(PortsAdministrationofShenzhenMunicipality)79,679,948.231-2yearsandmorethan3yearsTobepaiduponconfirmationbybothparties
CCCCWaterTransportPlanningandDesignInstituteCo.,Ltd.58,666,012.941-2years,2-3yearsandmorethan3yearsTobepaiduponconfirmationbybothparties
LacAssalInvestmentHoldingCompanyLimited48,162,348.731-2yearsTobepaiduponconfirmationbybothparties
ShanghaiZhenhuaHeavyIndustriesCo.,Ltd.37,248,716.351-2yearsandmorethan3yearsThecontractedsettlementconditionhasnotbeenreached
ShantouTransportationBureau31,358,355.47Morethan3yearsTobepaiduponconfirmationbybothparties
WuxiHuadongHeavyMachineryCo.,Ltd.10,090,410.682-3yearsTobepaiduponconfirmationbybothparties
ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd.10,079,369.00Morethan3yearsTobepaiduponconfirmationbybothparties
GuangdongGrotonGroupCo.,Ltd.(formerlyknownasGuangdongHengtaiGuotongIndustrialCo.,Ltd.)10,000,000.00Morethan3yearsThecontractedsettlementconditionhasnotbeenreached
ShantouFinanceBureau10,000,000.00Morethan3yearsTobepaiduponconfirmationbybothparties
Total295,285,161.40————

32.Non-currentliabilitiesduewithinoneyear

Item31/12/202331/12/2022
Long-termborrowingsduewithinoneyear(NoteVIII,34)1,033,008,184.012,313,191,859.96
Including:Creditborrowings532,282,391.001,368,934,869.99
Guaranteedborrowings410,725,775.58219,564,028.82
Mortgageandpledgedborrowings30,352,589.61715,461,578.62
Guaranteedandmortgageborrowings59,647,427.829,231,382.53
Bondspayableduewithinoneyear(NoteVIII,35)5,267,490,749.328,668,651,537.27
Leaseliabilitiesduewithinoneyear(NoteVIII,36)248,634,286.86306,942,164.80
Long-termpayablesduewithinoneyear(NoteVIII,37)184,534,373.50155,665,725.85
Long-termemployeebenefitspayableduewithinoneyear(NoteVIII,38)49,730,825.2154,414,877.57
Othernon-currentliabilitiesduewithinoneyear(NoteVIII,41)34,005,870.35142,357,523.50
Total6,817,404,289.2511,641,223,688.95

33.Othercurrentliabilities

(1)Detailsofothercurrentliabilities

Item31/12/202331/12/2022
Short-termbondspayable2,007,190,136.983,017,713,424.64
Accruedprofessionalagencyfee114,638,017.33124,799,040.22
Others22,014,380.2218,635,061.10
Total2,143,842,534.533,161,147,525.96

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

33.Othercurrentliabilities-continued

(2)Changesinshort-termbondspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofbond

NameofbondFacevalueCouponrateDateofissueTermofthebondAmountofissue31/12/2022AmountissuedinthecurrentyearInterestaccruedbasedonparvalueAmortizationofpremiumsordiscountsRepaymentinthecurrentyear31/12/2023Isitinbreachofcontract?
2.43%RMB2billionSuper&Short-termCommercialPaper2,000,000,000.002.43%2023-11-790days2,000,000,000.00-2,000,000,000.007,190,136.98--2,007,190,136.98No
2.35%RMB2billionSuper&Short-termCommercialPaper2,000,000,000.002.35%2023-3-1180days2,000,000,000.00-2,000,000,000.0023,114,754.10-2,023,114,754.10-No
2.05%RMB2billionSuper&Short-termCommercialPaper2,000,000,000.002.05%2023-6-14180days2,000,000,000.00-2,000,000,000.0020,163,934.43-2,020,163,934.43-No
1.75%RMB1billionSuper&Short-termCommercialPaper1,000,000,000.001.75%2022-9-1270days1,000,000,000.001,005,657,534.24-7,287,671.24-1,012,945,205.48-No
1.93%RMB2billionSuper&Short-termCommercialPaper2,000,000,000.001.93%2022-9-8180days2,000,000,000.002,012,055,890.40-6,979,725.60-2,019,035,616.00-No
Total9,000,000,000.00——————9,000,000,000.003,017,713,424.646,000,000,000.0064,736,222.35-7,075,259,510.012,007,190,136.98

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

34.Long-termborrowings

CHINAMERCHANTSPORTGROUPCO.,LTD.

Category

Category31/12/202331/12/2022Rangeofyear-endinterestrate
Creditborrowings16,857,281,855.6012,319,883,867.051.20%-3.80%
Guaranteedborrowings(Note1)845,725,775.581,020,670,858.022.95%-12.90%
Mortgageandpledgedborrowings(Note2)314,794,387.221,082,723,114.443.40%-3.96%
Guaranteedandmortgageborrowings(Note3)1,242,750,120.32280,013,198.302.95%
Total19,260,552,138.7214,703,291,037.81——
Less:Long-termborrowingsduewithinoneyear1,033,008,184.012,313,191,859.96——
Including:Creditborrowings532,282,391.001,368,934,869.99——
Guaranteedborrowings410,725,775.58219,564,028.82——
Mortgageandpledgedborrowings30,352,589.61715,461,578.62——
Guaranteedandmortgageborrowings59,647,427.829,231,382.53
Long-termborrowingsdueafteroneyear18,227,543,954.7112,390,099,177.85——

Note1:TheborrowingsareguaranteedbyShenzhenMagangGodown&WharfCo.,Ltd.,China

MerchantsPort(Shenzhen)Co.,Ltd.andCMPort.Note2:On31December2023,theGroupobtainedthelong-termborrowingsofRMB

314,794,387.22(31December2022:RMB1,082,723,114.44)withthelandwithproperty

right,fixedassetsandconstructioninprogressofYidePortCo.,Ltd.("YidePort"),as

wellasthelandwithpropertyrightofGuangdongShunkongPortDevelopmentand

ConstructionCo.,Ltd.("ShunkongPort"),ascollaterals.Note3:On31December2023,ShenzhenHaixingHarborDevelopmentCo.,Ltd.("Shenzhen

Haixing")obtainedthelong-termborrowingsofRMB1,242,750,120.32(31December

2022:RMB280,013,198.30)withthelandwithpropertyrightascollaterals,andthe

borrowingsareguaranteedbyCMPortandSinotransSouthChinaCo.,Ltd.Detailsofmortgageandpledgedborrowingsareasfollows:

Companyname31/12/202331/12/2022Collateralandpledge
BankofChinaQianhaiShekouBranch1,242,750,120.32280,013,198.30LanduserightsofShenzhenHaixing
ChinaConstructionBankShundeBranch206,239,867.27236,479,995.32LanduserightsandfixedassetsofYidePort
BankofCommunicationsCo.,Ltd.GuangdongBranch108,554,519.95-Landuserights(PhaseII)ofShunde
ChinaDevelopmentBankCorporation-494,997,308.55TheGroup'sentireequityinCICT
InternationalFinanceCorporation-123,849,460.76TheGroup'sentireequityinTML
AfricanDevelopmentBank-56,864,864.36
NederlandseFinancierings-MaatschappijvoorOntwikkelingslandenN.V.-46,859,749.65
TheOpecFundForInternationalDevelopment-40,139,904.25
SocietedePromotionetdeParticipationpourlaCooperationEconomiqueS.A.-40,170,265.09
DeutscheInvestitions-undEntwicklungsgesellschaftMBH-33,449,920.21
ChinaMinshengBankCo.,Ltd.ZhoushanBranch-9,911,646.25LanduserightsandfixedassetsofZhoushanRoRo
Total1,557,544,507.541,362,736,312.74

Note:SeeNote(VIII)64fortheabovemortgagesandpledges.

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35.Bondspayable

(1)Bondspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
5.000%USD600millioncorporatebond4,304,565,371.234,227,154,465.35
4.750%USD500millioncorporatebond3,605,285,143.363,542,544,662.47
4.000%USD500millioncorporatebond3,544,024,689.323,482,186,896.02
2.690%RMB3billioncorporatebond3,027,415,890.403,027,415,890.40
2.450%RMB3billioncorporatebond3,023,560,273.973,023,560,273.97
3.520%RMB2billioncorporatebond2,050,147,945.192,050,147,945.19
4.375%USD900millioncorporatebond-6,371,347,105.64
3.360%RMB2billioncorporatebond-2,032,587,397.25
Total19,554,999,313.4727,756,944,636.29
Less:Bondspayableduewithinoneyear5,267,490,749.328,668,651,537.27
Bondspayabledueafteroneyear14,287,508,564.1519,088,293,099.02

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

35.Bondspayable-continued

(2)Detailsofbondspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofbonds

NameofbondsFacevalueCouponrateDateofissueTermofthebondAmountofissue31/12/2022AmountissuedinthecurrentyearInterestaccruedbasedonparvalueAmortizationofpremiumsordiscountsRepaymentincurrentyearEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies31/12/2023Isitinbreachofcontract?
4.375%USD900millioncorporatebondUSD900,000,000.004.3750%2018-8-65yearsUSD900,000,000.006,371,347,105.64-165,969,062.107,181,597.316,594,432,388.7149,934,623.66-No
5.000%USD600millioncorporatebondUSD600,000,000.005.0000%2018-8-610yearsUSD600,000,000.004,227,154,465.35-211,325,733.295,708,335.36211,183,578.2771,560,415.504,304,565,371.23No
4.750%USD500millioncorporatebondUSD500,000,000.004.7500%2015-8-310yearsUSD500,000,000.003,542,544,662.47-167,360,385.312,662,117.20167,360,385.3860,078,363.763,605,285,143.36No
3.360%RMB2billioncorporatebond2,000,000,000.003.3600%2020-7-73years2,000,000,000.002,032,587,397.25-34,612,602.75-2,067,200,000.00--No
3.520%RMB2billioncorporatebond2,000,000,000.003.5200%2021-4-143years2,000,000,000.002,050,147,945.19-70,400,000.00-70,400,000.00-2,050,147,945.19No
4.000%USD500millioncorporatebondUSD500,000,000.004.0000%2022-6-15yearsUSD500,000,000.003,482,186,896.02-140,882,105.542,781,931.67140,841,532.6759,015,288.763,544,024,689.32No
2.690%RMB3billioncorporatebond3,000,000,000.002.6900%2022-8-293years3,000,000,000.003,027,415,890.40-80,700,000.00-80,700,000.00-3,027,415,890.40No
2.450%RMB3billioncorporatebond3,000,000,000.002.4500%2022-9-52years3,000,000,000.003,023,560,273.97-73,500,000.00-73,500,000.00-3,023,560,273.97No
Total——————————27,756,944,636.29-944,749,888.9918,333,981.549,405,617,885.03240,588,691.6819,554,999,313.47No
Less:Bondspayableduewithinoneyear——————————8,668,651,537.27————————5,267,490,749.32——
Bondspayabledueafteroneyear——————————19,088,293,099.02————————14,287,508,564.15——

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36.Leaseliabilities

(1)Leaseliabilities

CHINAMERCHANTSPORTGROUPCO.,LTD.Category

Category31/12/202331/12/2022
Leasepayment2,782,133,802.801,963,098,776.36
Unrecognizedfinancingcost-1,532,327,309.02-707,805,697.52
Total1,249,806,493.781,255,293,078.84
Less:Leaseliabilitiesduewithinoneyear248,634,286.86306,942,164.80
Leaseliabilitiesdueafteroneyear1,001,172,206.92948,350,914.04

(2)Maturityofleaseliabilities

Item31/12/2023
Minimumleasepaymentsundernon-cancellableleases:
1styearsubsequenttothebalancesheetdate298,065,006.16
2ndyearsubsequenttothebalancesheetdate91,365,497.12
3rdyearsubsequenttothebalancesheetdate86,669,003.03
Subsequentyears2,306,034,296.49
Total2,782,133,802.80

TheGroupisnotexposedtoanysignificantliquidityriskassociatedwithleaseliabilities.

37.Long-termpayables

(1)Presentationoflong-termpayables

Item31/12/202331/12/2022
Long-termpayables4,001,789,922.653,698,632,219.45
Specialpayables5,606,653.028,349,096.71
Total4,007,396,575.673,706,981,316.16
Less:Long-termpayablesduewithinoneyear184,534,373.50155,665,725.85
Long-termpayablesdueafteroneyear3,822,862,202.173,551,315,590.31

(2)Long-termpayables

Item31/12/202331/12/2022
Terminalmanagementrights(Note)3,958,393,516.473,657,579,951.15
Others43,396,406.1841,052,268.30
Total4,001,789,922.653,698,632,219.45
Less:Long-termpayablesduewithinoneyear184,534,373.50155,665,725.85
Long-termpayablesdueafteroneyear3,817,255,549.153,542,966,493.60

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

37.Long-termpayables-continued

(2)Long-termpayables-continuedNote:MainlyfromCICTandTCPterminalmanagementrightspurchased.On12August2011,

theGroupreacheda35-yearbuilding,operationandtransferagreementthroughthesubsidiaryCICTandSriLankaPortAuthorityonthebuilding,operation,managementanddevelopmentofColomboPortSouthContainerTerminal(hereinafterreferredtoas"BOT").Theabove-mentionedamountpayablefortheacquisitionofterminalmanagementrightsisdeterminedbydiscountingtheamounttobepaidinthefutureusingtheprevailingmarketinterestrateaccordingtotheBOTagreement.Asat31December2023,theamountpayablefortheacquisitionofterminalmanagementrightsisRMB876,500,567.56.TCP,asubsidiaryoftheCompany,enteredintoafranchiseagreementonthePortofParanaguáwiththeAdministrationofthePortsofParanaguáandAntonina-APPA(hereinafterreferredtoas"APPA").Theagreementprovidesforaninitialtermof25yearsforthefranchisingrights.InApril2016,TCPandAPPAenteredintotheSupplementalAgreement,whichextendsthetermto50yearsandwillbeexpiredinOctober2048.On9September2021,TCP,asubsidiaryoftheCompany,enteredintoasupplementalagreementtotheLeaseAgreementwithAPPAforthefranchisingrightsofthePortsofParanaguáandAntonina,pursuanttowhichthebasefigureforthecalculationoffranchisingrightsforthePortsofParanaguáandAntoninawasadjustedfromBrazilIGP-MInflationIndex("IGP-Mindex")totheExtendedNationalConsumerPriceIndex("IPCAindex")ofBrazilianInstituteofGeographyandStatistics("IBGE").InNovember2021,TCPreadjustedthefranchisingrightsusingtheIPCAindex.Asat31December2023,theamountoffranchisingrightspayablewasRMB3,081,892,948.91.

(3)Specialpayables

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2022IncreasefortheyearDecreasefortheyearEffectofchangesinthescopeofconsolidation31/12/2023Reason
Employeehousingfund5,126,641.68480,061.3450.00-5,606,653.02Note
Innovationworkshopformodelworkers3,222,455.03---3,222,455.03-
Total8,349,096.71480,061.3450.00-3,222,455.035,606,653.02

Note:Thisrepresentstherepairingfundforpublicareasandpublicfacilitiesandequipment

establishedaftertheGroupsellsthepublic-ownedhouseonthecollectivelyallocatedlandtoemployees.Thefundiscontributedbyalltheemployeeshavingownershipofthehouseaccordingtotherulesandisspeciallymanagedandusedforspecificpurpose.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

38.Long-termemployeebenefitspayable

(1)Long-termemployeebenefitspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Post-employmentbenefits-netliabilitiesofdefinedbenefitplans509,605,071.25516,950,669.03
Terminationbenefits58,098,932.2264,274,552.96
Others(Note)85,036,743.65112,285,587.01
Total652,740,747.12693,510,809.00
Less:Long-termemployeebenefitspayableduewithinoneyear49,730,825.2154,414,877.57
Long-termemployeebenefitspayabledueafteroneyear603,009,921.91639,095,931.43

Note:ThisrepresentstheemployeerelocationcostsoftheCompany'ssubsidiaryShantouPortin

connectionwithlandacquisitionandreservation.

(2)ChangesindefinedbenefitplansPresentvalueofdefinedbenefitplanobligations:

Item20232022
I.Openingbalance516,950,669.03463,858,274.44
II.Definedbenefitcostincludedinprofitorlossfortheperiod31,630,084.7124,392,165.72
1.Currentservicecost14,097,094.5011,191,538.44
2.Pastservicecost2,420,000.00-
3.Interestadjustment15,112,990.2113,200,627.28
III.Definedbenefitcostincludedinothercomprehensiveincome-22,975,434.7550,820,198.04
1.Actuarialgains-23,856,287.1549,959,657.35
2.Effectofexchangeratechanges880,852.40860,540.69
IV.Otherchanges-16,000,247.74-22,119,969.17
1.Benefitspaid-16,000,247.74-22,119,969.17
2.Changesinthescopeofconsolidation--
V.Closingbalance509,605,071.25516,950,669.03

TheCompany'ssubsidiariesprovidetheregisteredretireesandin-servicestaffwithsupplementarypost-employmentbenefitplans.TheGrouphiredathird-partyactuarytoestimatethepresentvalueoftheabove-mentionedretirementbenefitplanobligationsinanactuarialmannerbasedontheexpectedcumulativewelfareunitmethod.TheGrouprecognizestheliabilitiesbasedontheactuarialresults.Therelevantactuarialgainsorlossesareincludedinothercomprehensiveincomeandcannotbereclassifiedintoprofitorlossinthefuture.Pastservicecostsarerecognizedinprofitorlossfortheperiodinwhichtheplanisrevised.Thenetinterestisdeterminedbymultiplyingthedefinedbenefitplannetdebtornetassetsbytheappropriatediscountrate.

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39.Provisions

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2022IncreasefortheyearDecreasefortheyearEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies31/12/2023Reason
Pendinglitigation35,365,156.4352,650,477.007,489,688.345,064,114.3285,590,059.41Note
Salesdiscount-179,125,657.39179,125,657.39--
Total35,365,156.43231,776,134.39186,615,345.735,064,114.3285,590,059.41

Note:ThisrepresentstheestimatedcompensationamountthattheCompany'ssubsidiaryTCP

mayneedtopayduetothependinglitigation.

40.Deferredincome

Item31/12/2022IncreasefortheyearDecreasefortheyear31/12/2023
Governmentgrants1,031,273,189.7441,207,834.2547,704,466.261,024,776,557.73
Total1,031,273,189.7441,207,834.2547,704,466.261,024,776,557.73

41.Othernon-currentliabilities

Item31/12/202331/12/2022
Actuarialcostforthecalculationofpensionbenefitdifferenceforthepublicsecuritybureaustaff(Note1)198,642,177.67175,742,813.67
Relatedpartyborrowings(Note2)11,945,870.353,162,000.00
Thirdpartyborrowings(Note2)-143,755,523.50
Berthprioritycallright(Note3)439,990.794,480,217.05
Others2,612,095.271,600,086.28
Total213,640,134.08328,740,640.50
Less:Othernon-currentliabilitiesduewithinoneyear34,005,870.35142,357,523.50
Including:Actuarialcostforthecalculationofpensionbenefitsdifferenceforthepublicsecuritybureaustaff22,060,000.0015,440,000.00
Relatedpartyborrowings11,945,870.353,162,000.00
Thirdpartyborrowings-123,755,523.50
Othernon-currentliabilitiesdueafteroneyear179,634,263.73186,383,117.00

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41.Othernon-currentliabilities-continuedNote1:ItrepresentsthetransferofZhanjiangPortPublicSecurityBureautothePeople's

GovernmentofZhanjiangMunicipalitybyZhanjiangPort,asubsidiaryoftheCompany,in2020inaccordancewiththeNoticeontheIssuanceoftheProgramonDeepeningtheManagementSystemReformofGanghangPublicSecurityOrgans(ZhongYangBianBanFaNo.327(2017))andtheNoticeontheIssuanceoftheImplementationPlanforDeepeningtheManagementSystemReformofGanghangPublicSecurityOrgansinGuangdongProvince(YueJiBianBanFaNo.221(2018)).Theformerin-servicepoliceofficersofZhanjiangPortPublicSecurityBureauweretransferredascivilservantsinaccordancewithstateregulations,theretiredpoliceofficerswereincludedinthescopeofpensioninsuranceofthegovernmentdepartmentsandpublicinstitutionsinZhanjiang,andthedifferencebetweenthepensionbenefitsundertheoriginalstandardandtheretirementbenefitsofZhanjiangmunicipalpoliceofficers(the"pensionbenefitdifference")wasbornebyZhanjiangPort.ShantouPort,asubsidiaryoftheCompany,transferredShantouMunicipalPublicSecurityBureauGanghangBranch(formerly,theShantouPortPublicSecurityBureau)toShantouMunicipalGovernment,andShantouMunicipalPublicSecurityBureauGanghangBranchwasfullytakenoverbyShantouMunicipalPublicSecurityBureau.Thein-servicepoliceofficersweretransferredascivilservantsinaccordancewithstateregulations,theretiredpoliceofficerswereincludedinthescopeofpensioninsuranceofthegovernmentdepartmentsandpublicinstitutionsinShantou,andthepensionbenefitdifferencewasbornebyShantouPort.Note2:ItrepresentstheprincipalandinterestonborrowingsofthesubsidiaryoftheCompany

ShunkongPortfromitsminorityshareholderGuangdongShunkongCityInvestmentRealEstateCo.,Ltd.anditsrelatedpartyGuangdongShunkongTransportationInvestmentCo.,Ltd.Note3:Itrepresentstheberthprioritycallrightasagreedinthecontractenteredintowiththe

customersin2003,withtotalamountofUSD14million.TheGroupmustgiveprioritytotheberthingrequirementsofthecontractedcustomersduringthecontractperiod.ChiwanContainerTerminalamortizedtheberthprioritycallrightover20yearsusingstraight-linemethod.

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42.Sharecapital

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2022Changesfortheyear31/12/2023
NewissueofshareBonusissueCapitalizationofsurplusreserveOthersSub-total
2023
I.Restrictedtradableshares——————————————
1.State-ownedshares-------
2.State-ownedcorporateshares576,709,537.00-----576,709,537.00
3.Otherdomesticshares7,366.00----7,366.00-7,366.00-
4.Foreignshares-------
Totalrestrictedtradableshares576,716,903.00----7,366.00-7,366.00576,709,537.00
II.Non-restrictedtradableshares——————————————
1.OrdinarysharesdenominatedinRMB1,742,468,718.00---976.00976.001,742,469,694.00
2.Foreigncapitalshareslisteddomestically179,889,040.00---6,390.006,390.00179,895,430.00
3.Foreigncapitalshareslistedoverseas-------
4.Others-------
Totalnon-restrictedtradableshares1,922,357,758.00---7,366.007,366.001,922,365,124.00
III.Totalshares2,499,074,661.00-----2,499,074,661.00

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42.Sharecapital-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2021Changesfortheyear31/12/2022
NewissueofshareBonusissueCapitalizationofsurplusreserveOthersSub-total
2022
I.Restrictedtradableshares——————————————
1.State-ownedshares-------
2.State-ownedcorporateshares-576,709,537.00---576,709,537.00576,709,537.00
3.Otherdomesticshares9,821.00----2,455.00-2,455.007,366.00
4.Foreignshares1,148,648,648.00----1,148,648,648.00-1,148,648,648.00-
Totalrestrictedtradableshares1,148,658,469.00576,709,537.00---1,148,651,103.00-571,941,566.00576,716,903.00
II.Non-restrictedtradableshares——————————————
1.OrdinarysharesdenominatedinRMB593,819,745.00---1,148,648,973.001,148,648,973.001,742,468,718.00
2.Foreigncapitalshareslisteddomestically179,886,910.00---2,130.002,130.00179,889,040.00
3.Foreigncapitalshareslistedoverseas-------
4.Others-------
Totalnon-restrictedtradableshares773,706,655.00---1,148,651,103.001,148,651,103.001,922,357,758.00
III.Totalshares1,922,365,124.00576,709,537.00---576,709,537.002,499,074,661.00

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43.CapitalReserve

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/2022IncreaseDecrease31/12/2023
2023
I.Capitalpremium34,208,812,963.502,244,317,625.22-36,453,130,588.72
Including:Capitalcontributedbyinvestors17,068,816,277.34--17,068,816,277.34
Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol13,302,937,205.73--13,302,937,205.73
Differencesarisingfromacquisitionofminorityinterests(Note1)2,165,423,814.022,242,433,715.25-4,407,857,529.27
Others1,671,635,666.411,883,909.97-1,673,519,576.38
II.Othercapitalreserve542,827,871.75104,628,733.7723,740,391.18623,716,214.34
Including:Transferfromcapitalreserveunderthepreviousaccountingsystem-2,781,133.00---2,781,133.00
Unexercisedshare-basedpayment(Note2)5,591,402.001,528,712.73475,524.376,644,590.36
Otherchangesinowners'equityoftheinvesteeunderequitymethodotherthanchangesinnetprofitorloss,profitdistributionandothercomprehensiveincome540,017,602.75103,100,021.0423,264,866.81619,852,756.98
Total34,751,640,835.252,348,946,358.9923,740,391.1837,076,846,803.06
2022
I.Capitalpremium23,189,922,809.6211,018,890,153.88-34,208,812,963.50
Including:Capitalcontributedbyinvestors7,012,992,483.9410,055,823,793.40-17,068,816,277.34
Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol13,302,937,205.73--13,302,937,205.73
Differencesarisingfromacquisitionofminorityinterests1,215,209,939.74950,213,874.28-2,165,423,814.02
Others1,658,783,180.2112,852,486.20-1,671,635,666.41
II.Othercapitalreserve402,779,949.08151,303,029.2111,255,106.54542,827,871.75
Including:Transferfromcapitalreserveunderthepreviousaccountingsystem-2,781,133.00---2,781,133.00
Unexercisedshare-basedpayment9,956,938.605,617,671.309,983,207.905,591,402.00
Otherchangesinowners'equityoftheinvesteeunderequitymethodotherthanchangesinnetprofitorloss,profitdistributionandothercomprehensiveincome395,604,143.48145,685,357.911,271,898.64540,017,602.75
Total23,592,702,758.7011,170,193,183.0911,255,106.5434,751,640,835.25

Note1:ThechangesfortheyearmainlyrepresentthedividendsattributabletoCMPortthatthe

Companychosetoacquireintheformofsharereplacementandshareholdingincrease,whichincreasedthecapitalreservebyRMB2,269,118,327.61.RefertoNote(XI)2fordetails.Note2:RefertoNote(XVI)2fordetails.

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44.Othercomprehensiveincome

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/20222023Otherchanges31/12/2023
Pre-taxamountfortheyearLess:AmountincludedinothercomprehensiveincomeinthepriorperiodbuttransferredtoprofitorlossinthecurrentperiodLess:AmountincludedinothercomprehensiveincomeinthepriorperiodbuttransferredtoretainedearningsinthecurrentperiodLess:IncometaxexpensesAttributabletotheCompany,netoftaxAttributabletominorityshareholders,netoftax
2023
I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss51,014,303.0660,755,557.83--846,996.46-73,874,071.89133,782,633.26--22,859,768.83
Including:Changesarisingfromremeasurementofdefinedbenefitplans-10,189,712.8825,003,573.00---7,480,103.3417,523,469.66--2,709,609.54
Othercomprehensiveincomethatcan'tbereclassifiedtoprofitorlossunderequitymethod-8,907,673.3432,473,509.74----83,841,725.07116,315,234.81--92,749,398.41
Changesinfairvalueofotherequityinstruments70,111,689.283,278,475.09--846,996.462,487,549.84-56,071.21-72,599,239.12
II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss-740,567,922.92149,948,207.40----140,198,902.60290,147,110.00--880,766,825.52
Including:Othercomprehensiveincomethatmaybereclassifiedtoprofitorlossunderequitymethod-60,762,188.43-767,504,700.07----366,028,318.84-401,476,381.23--426,790,507.27
Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies-679,805,734.49917,452,907.47---225,829,416.24691,623,491.23--453,976,318.25
Totalothercomprehensiveincome-689,553,619.86210,703,765.23--846,996.46-214,072,974.49423,929,743.26--903,626,594.35
2022(Restated)
I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss81,233,996.26-72,230,027.20--329,334.05-22,706,023.29-49,853,337.967,513,669.9151,014,303.06
Including:Changesarisingfromremeasurementofdefinedbenefitplans2,603,415.85-49,039,668.45----12,793,128.73-36,246,539.72--10,189,712.88
Othercomprehensiveincomethatcan'tbereclassifiedtoprofitorlossunderequitymethod2,643,088.68-25,906,733.50----11,550,762.02-14,355,971.48--8,907,673.34
Changesinfairvalueofotherequityinstruments75,987,491.732,716,374.75--329,334.051,637,867.46749,173.247,513,669.9170,111,689.28
II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss-971,359,314.441,701,191,299.27---230,791,391.521,470,399,907.75--740,567,922.92
Including:Othercomprehensiveincomethatmaybereclassifiedtoprofitorlossunderequitymethod49,431,519.10-246,633,232.89----110,193,707.53-136,439,525.36--60,762,188.43
Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies-1,020,790,833.541,947,824,532.16---340,985,099.051,606,839,433.11--679,805,734.49
Totalothercomprehensiveincome-890,125,318.181,628,961,272.07--329,334.05208,085,368.231,420,546,569.797,513,669.91-689,553,619.86

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45.Specialreserve

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/2022IncreaseDecrease31/12/2023
Safetyproductioncost26,358,259.9761,589,514.2153,943,779.7734,003,994.41

46.Surplusreserve

Item31/12/2022IncreaseDecrease31/12/2023
Statutorysurplusreserve1,001,917,449.1594,063,114.53-1,095,980,563.68

47.Unappropriatedprofit

ItemAmountProportionofappropriationorallocation
2023
Unappropriatedprofitatthebeginningoftheyearbeforeadjustment16,679,688,347.09
Add:Adjustmenttounappropriatedprofitatbeginningoftheyear22,299,954.05
Including:Changesinaccountingpolicies22,299,954.05
Unappropriatedprofitatthebeginningoftheyearafteradjustment16,701,988,301.14
Add:NetprofitoftheyearattributabletoshareholdersoftheCompany3,571,800,762.16
Unappropriatedprofitcarriedforwardfromothercomprehensiveincome-
Less:Transfertostatutorysurplusreserveinthecurrentyear94,063,114.53
Transfertodiscretionarysurplusreserveinthecurrentyear-
Ordinaryshares'dividendspayable1,124,583,597.45Note1
Ordinaryshares'dividendsconvertedintosharecapital-
Pensionbenefitdifference7,944,921.60Note2
TransfertotheNationalCouncilforSocialSecurityFundofthePRC-
Distributiontoholdersofotherequityinstruments-
Others1,883,909.97
Unappropriatedprofitattheendoftheyear19,045,313,519.75

Item

ItemAmountProportionofappropriationorallocation
2022(Restated)
Unappropriatedprofitatthebeginningoftheyearbeforeadjustment14,205,879,106.49
Add:Adjustmenttounappropriatedprofitatbeginningoftheyear21,052,360.17
Including:Changesinaccountingpolicies21,052,360.17
Unappropriatedprofitatthebeginningoftheyearafteradjustment14,226,931,466.66
Add:NetprofitoftheyearattributabletoshareholdersoftheCompany3,338,693,816.70
Unappropriatedprofitcarriedforwardfromothercomprehensiveincome7,513,669.91
Less:Transfertostatutorysurplusreserveinthecurrentyear40,734,887.15
Transfertodiscretionarysurplusreserveinthecurrentyear-
Ordinaryshares'dividendspayable826,617,003.32
Ordinaryshares'dividendsconvertedintosharecapital-
Pensionbenefitdifference3,798,761.66
Distributiontoholdersofotherequityinstruments
Others-
Unappropriatedprofitattheendoftheyear16,701,988,301.14

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

47.Unappropriatedprofit-continuedNote1:Accordingtotheresolutionofshareholders'meetingon22May2023,theCompany

distributescashdividendsofRMB4.50(inclusiveoftax)forevery10shares,totallingRMB1,124,583,597.45onthebasisofthetotalsharesof2,499,074,661attheendof2022.Note2:Thisrepresentsthedifferencebetweenthepensionbenefitsundertheoriginalstandard

andtheretirementbenefitsofShantoumunicipalpoliceofficersbornebyShantouPort.ShantouPortrecognizestherelatedliabilitiesbasedontheactuarialresults,andunappropriatedprofitofRMB7,944,921.60iseliminatedbasedontheproportionofequityinterestinShantouPort.

48.Operatingincomeandoperatingcosts

(1)Detailsofoperatingincomeandoperatingcosts

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item20232022
IncomeCostIncomeCost
Principaloperation15,568,944,030.709,085,897,544.0616,072,394,601.939,433,786,605.46
Otheroperations181,531,749.52232,289,163.69158,094,525.62216,675,107.48
Total15,750,475,780.229,318,186,707.7516,230,489,127.559,650,461,712.94

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48.Operatingincomeandoperatingcosts-continued

(2)Breakdowninformationofoperatingincomeandoperatingcosts

CHINAMERCHANTSPORTGROUPCO.,LTD.Categoryofcontracts

CategoryofcontractsPortsoperationBondedlogisticsoperationOtheroperationsTotal
OperatingincomeOperatingcostsOperatingincomeOperatingcostsOperatingincomeOperatingcostsOperatingincomeOperatingcosts
MainlandChina,HongKongandTaiwanarea10,284,643,568.106,714,915,284.62492,433,288.31254,604,583.47181,531,749.52232,289,163.6910,958,608,605.937,201,809,031.78
-PearlRiverDelta6,075,691,801.013,640,281,453.34343,594,001.79181,329,868.92181,531,749.52232,289,163.696,600,817,552.324,053,900,485.95
-YangtzeRiverDelta557,788,311.93361,926,675.75----557,788,311.93361,926,675.75
-BohaiRim76,760,801.9663,825,074.56148,839,286.5273,274,714.55--225,600,088.48137,099,789.11
-Otherareas3,574,402,653.202,648,882,080.97----3,574,402,653.202,648,882,080.97
Othercountries4,751,630,018.562,081,165,945.5140,237,155.7335,211,730.46--4,791,867,174.292,116,377,675.97
Total15,036,273,586.668,796,081,230.13532,670,444.04289,816,313.93181,531,749.52232,289,163.6915,750,475,780.229,318,186,707.75

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48.Operatingincomeandoperatingcosts-continued

(3)DescriptionofperformanceobligationsTheGroupprovidesportservice,bondedlogisticsserviceandotherservices.Theseservicesareobligationsperformedoveraperiodoftime.Forportservices,asthehandlingtimeforcontainersandbulkcargosisshort,themanagementbelievesthatitisnotnecessarytorecognizerevenueaccordingtotheprogresstowardsthecompletionofcontractanditisanappropriatemethodtorecognizethefulfilmentofperformanceobligationandrevenueuponthecompletionoftheservice.Forbondedlogisticsserviceandotherservices,thecustomersevenlyobtainandconsumetheeconomicbenefitsfromtheGroup'sperformanceofcontract,meanwhilethechargingrulesasagreedinthecontracttermsusuallyadoptdaily/month/yearlybasis.Duringtheprocessofrenderingservices,theGrouprecognizesrevenueusingstraight-linemethod.Atthesametime,theGroupisprimarilyresponsiblefortheaboveservicesandgenerallydoesnothaveanycommitmenttotheamountofmoneyexpectedtobereturnedtothecustomer.PartoftheGroup'shandlingcontractsareestablishedwithdiscountterms,i.e.,thecustomerswhosebusinessvolumereachesagreedlevel,aregrantedwithpreferentialchargerateordiscount.Attheendoftheyear,asthebusinessvolumefinallyrealizedwithinthecontractperiodisuncertain,thecontractconsiderationissubjecttovariablefactors.Themanagementincludesthispartofdiscountinotherpayablesandprovisions.Attheendoftheyear,thevariableconsiderationsarisingfromsalesdiscountaresetoutinNote(VIII)31(3)andNote(VIII)39.

(4)DescriptionsonallocationtoremainingperformanceobligationsAttheendoftheyear,theamountofrevenuecorrespondingtotheperformanceobligationswhichtheGrouphasenteredintoacontractforbuthasnotfulfilledorcompletelyfulfilledmainlyincludedthecontractliabilitiesofRMB142,080,101.00,ofwhichRMB97,512,251.80isexpectedtoberecognizedasrevenuein2024;andRMB44,567,849.20isexpectedtoberecognizedasrevenuein2025andsubsequentyears.

49.Taxesandsurcharges

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item20232022
Propertytax75,912,651.8563,233,633.53
Landusetax37,809,190.3336,260,260.97
Cityconstructionandmaintenancetax7,891,945.978,456,389.09
Educationsurchargesandlocaleducationsurcharges5,953,401.796,253,550.00
Stampduty5,057,465.358,694,943.46
Others(Note)180,373,370.90159,350,696.41
Total312,998,026.19282,249,473.46

Note:OthersmainlyrepresentthesocialcontributiontaxandtaxonservicesbornebyTCP,a

subsidiaryoftheCompany,totalledBRL120,997,445.84(equivalenttoRMB170,698,356.69)fortheyear.

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50.Administrativeexpenses

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item20232022
Employeebenefits1,297,690,387.031,280,394,043.79
Depreciationexpenses75,710,865.7979,095,275.09
Feespaidtoagencies63,693,285.4280,164,840.55
Amortizationofintangibleassets56,233,463.2554,493,578.78
Others283,313,153.89270,946,998.30
Total1,776,641,155.381,765,094,736.51

51.Researchanddevelopmentexpenses

Item20232022
Employeebenefits163,593,250.77218,783,071.72
DirectmaterialsandoutsourcedR&D41,115,107.1047,737,604.22
Depreciationandamortization11,500,358.1715,813,613.68
Others7,530,356.035,371,889.08
Total223,739,072.07287,706,178.70

52.Financialexpenses

Item20232022
Interestexpenses2,016,181,859.251,960,177,578.36
Less:Interestincome497,593,921.36469,834,098.05
Less:Capitalizedinterestexpenses45,140,959.3930,960,097.84
Exchangedifferences85,519,920.28477,004,284.27
Interestexpenses-Terminalmanagementrights(Note)206,277,567.64222,326,056.63
Interestexpensesonleaseliabilities60,834,329.1673,619,268.64
Handlingfee5,316,520.8821,148,526.03
Others7,718,011.685,232,154.38
Total1,839,113,328.142,258,713,672.42

Note:DetailsaresetoutinNote(VIII)37.

53.Otherincome

Classificationbynature20232022
Businessdevelopmentsubsidy113,983,657.9194,355,004.33
Transferfromallocationofdeferredincome(NoteVIII40)47,704,466.2645,858,732.41
AdditionaldeductionofVAT25,604,125.3645,179,805.12
Specialfundforoperation18,439,586.227,385,898.57
Steadypostsubsidies1,682,015.155,771,198.38
Others16,975,409.8743,097,431.61
Total224,389,260.77241,648,070.42

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54.Investmentincome

(1)Detailsofinvestmentincome:

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item20232022
Incomefromlong-termequityinvestmentsunderequitymethod5,979,007,585.967,185,182,148.75
Including:Incomefromlong-termequityinvestmentsofassociatesunderequitymethod5,582,402,904.906,765,840,426.95
Incomefromlong-termequityinvestmentsofjointventuresunderequitymethod396,604,681.06419,341,721.80
Investmentincomefromdisposalofsubsidiaries216,949,902.47-
Incomefromdisposaloflong-termequityinvestments(Lossesaremarkedwith"-")77,647.56-20,508.06
Investmentincomefromheld-for-tradingfinancialassets91,219,728.19152,728,622.47
Investmentincomefromothernon-currentfinancialassets41,365,576.6239,525,241.71
Dividendincomefrominvestmentsinotherequityinstruments20,056,500.00240,001.46
Total6,348,676,940.807,377,655,506.33

(2)Detailsofincomefromlong-termequityinvestmentsunderequitymethod

Investee20232022Reasonforchanges
SIPG3,700,844,097.274,762,565,562.93Changesinnetprofitofinvestee
NingboZhoushan1,049,986,813.85351,607,511.90Changesinnetprofitofinvestee
TerminalLinkSAS221,059,137.39364,965,366.44Changesinnetprofitofinvestee
NanshanGroup214,805,574.66206,680,217.04Changesinnetprofitofinvestee
Euro-AsiaOceangateS.àr.l.186,208,262.73140,072,915.26Changesinnetprofitofinvestee
LiaoningPort151,571,456.52144,196,061.13Changesinnetprofitofinvestee
ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd.42,538,797.17218,696,415.40Changesinnetprofitofinvestee
Others411,993,446.37996,398,098.65Changesinnetprofitofinvestee
Total5,979,007,585.967,185,182,148.75

55.Gains(Losses)fromchangesinfairvalue

Sourceresultingingainsfromchangesinfairvalues(Lossesaremarkedwith"-")20232022
Held-for-tradingfinancialassets49,197,662.3534,417,357.38
Othernon-currentfinancialassets24,155,138.17-163,451,007.49
Including:Financialassetsatfairvaluethroughprofitorloss24,155,138.17-163,451,007.49
Total73,352,800.52-129,033,650.11

56.Gains(Losses)fromimpairmentofcredit

Item20232022
I.Lossesfromimpairmentofcreditofaccountsreceivable-9,285,389.19-5,939,952.37
II.Gains(Losses)fromimpairmentofcreditofotherreceivables(Lossesaremarkedwith"-")43,872,200.88-217,234,842.93
III.Gains(Losses)fromimpairmentofcreditoflong-termreceivables(Lossesaremarkedwith"-")2,697,229.49-298,781.25
Total37,284,041.18-223,473,576.55

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

57.Lossesfromimpairmentofassets

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item20232022
Lossesfromimpairmentoffixedassets-149,923,619.44-6,048,776.05
Lossesfromimpairmentofintangibleassets-41,473,147.97-15,537,122.10
Gains(Losses)fromdeclineinvalueofinventories(Lossesaremarkedwith"-")99,456.13-573,122.05
Total-191,297,311.28-22,159,020.20

58.Gainsfromdisposalofassets

Item20232022Amountincludedinnon-recurringprofitorlossforthecurrentyear
Gainsfromdisposalofnon-currentassets36,759,532.6155,130,095.5236,759,532.61
Including:Gainsfromdisposalofintangibleassets35,051,791.8057,590,483.0435,051,791.80
Gains(Losses)fromdisposaloffixedassets(Lossesaremarkedwith"-")1,713,921.04-1,824,719.581,713,921.04
Otherlosses-6,180.23-635,667.94-6,180.23

59.Non-operatingincome

Item20232022Amountincludedinnon-recurringprofitorlossforthecurrentyear
Compensationreceivedforviolationofcontracts55,396,338.322,930,876.8555,396,338.32
Managementservicefeeanddirectors'remuneration11,964,440.078,190,857.4011,964,440.07
Landrentdeduction7,124,609.256,421,113.497,124,609.25
Incomefromrelocationcompensation5,558,730.176,955,000.005,558,730.17
Gainsfromretirementordamageofnon-currentassets1,966,904.663,138,573.241,966,904.66
Including:Gainsfromretirementordamageoffixedassets1,765,984.403,138,573.241,765,984.40
Exemptedcurrentaccounts197,118.0925,091,421.77197,118.09
Insuranceclaims44,269.64341,555.5844,269.64
Operationcompensation(Note)-213,574,591.16-
Governmentgrants-1,640,553.77-
Others5,049,613.9210,989,909.515,049,613.92
Total87,302,024.12279,274,452.7787,302,024.12

Note:RefertoNote(VIII),7.3(2)fordetails.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

60.Non-operatingexpenses

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item20232022Amountincludedinnon-recurringprofitorlossforthecurrentyear
Litigationloss42,689,603.9320,603,558.6142,689,603.93
Lossesonretirementofnon-currentassets24,548,001.45162,620,964.7924,548,001.45
Including:Lossesonretirementordamageoffixedassets22,356,701.0434,444,521.7322,356,701.04
Expenditureonpublicwelfaredonations11,153,329.5121,352,071.5311,153,329.51
Compensationandliquidateddamages1,195,947.8911,552,735.441,195,947.89
Administrativefinesandlatefees624,038.01-624,038.01
Others16,861,919.934,312,924.3116,861,919.93
Total97,072,840.72220,442,254.6897,072,840.72

61.Borrowingcosts

ItemCapitalizationrateAmountcapitalized
Constructioninprogress————
PhaseIprojectforthestuffinganddestuffingserviceareaofBaomanPortArea,ZhanjiangPort3.50%10,355,373.62
PhaseIIprojectfortheoperationareaterminalatLiaogeshanPortArea,FoshanPort4.19%10,134,790.48
Installationprojectofbucket-wheelstackerreclaimer,ZhanjiangPort3.50%837,359.25
PhaseIexpansionprojectforthecontainerterminalatBaomanPortArea,ZhanjiangPort3.30%57,750.00
Othernon-currentassets————
Advancesforchannels3.50%23,755,686.04
Sub-total——45,140,959.39
Interestexpensesincludedinprofitorlossfortheperiod(Excludesinterestexpenseonterminaloperatingrightsandleaseliabilities）——1,971,040,899.86
Total——2,016,181,859.25

62.Translationofforeigncurrencies

Item2023
Exchangedifferencesincludedinprofitorlossfortheperiod85,519,920.28
Total85,519,920.28

63.Incometaxexpenses

Item20232022
Currentincometaxexpenses1,129,424,872.77871,429,455.95
Deferredincometaxexpenses174,154,980.16241,530,220.80
Total1,303,579,852.931,112,959,676.75

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

63.Incometaxexpenses-continuedReconciliationofincometaxexpensestotheaccountingprofitisasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item2023
Totalprofit8,799,191,938.69
Incometaxexpensescalculatedat25%2,199,797,984.67
Effectofnon-deductiblecosts,expensesandlosses272,242,876.02
Accruedincometax384,531,164.82
Effectofdeductibletemporarydifferencesanddeductiblelossesforwhichdeferredtaxassetsarenotrecognizedintheyear232,164,986.26
Effectoftax-freeincome(Note)-1,152,685,934.75
Effectoftaxincentivesandchangesintaxrate-461,574,423.95
Effectofdifferenttaxratesofsubsidiariesoperatinginotherjurisdictions-191,471,358.38
Effectofutilizingdeductiblelossesforwhichdeferredtaxassetswerenotrecognizedinpriorperiod-47,180,168.14
Effectofadjustmentstoincometaxofprioryear-19,545,836.05
Others87,300,562.43
Incometaxexpenses1,303,579,852.93

Note:Thismainlyrepresentsthetaxeffectofincomefrominvestmentsinjointventuresand

associates.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

64.Assetswithrestrictedownershipanduseright

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/202331/12/2022
GrosscarryingamountCarryingamountTypeofrestrictionStatusofrestrictionGrosscarryingamountCarryingamountTypeofrestrictionStatusofrestriction
Cashandbankbalances(Note1)46,535,456.1446,535,456.14RestrictedguaranteePerformancebonds,frozenfunds,etc.9,309,145.949,309,145.94RestrictedguaranteesPerformancebonds,frozenfundsforcardbusinessofBankofCommunications
EquityinvestmentinCICT(Note2)--————2,115,796,097.992,115,796,097.99PledgePledgeofequity
EquityinvestmentinTML(Note2)--————1,047,063,416.301,047,063,416.30PledgePledgeofequity
Fixedassets(Note3)330,222,332.58291,001,239.59MortgageMortgageborrowings341,870,382.84341,870,382.84MortgageMortgageborrowings
Intangibleassets(Note3)457,654,685.65457,654,685.65MortgageMortgageborrowings222,040,259.68222,040,259.68MortgageMortgageborrowings
Constructioninprogress(Note3)--————4,298,598.504,298,598.50RestrictedconstructioninprogressMortgageborrowings
Total834,412,474.37795,191,381.38————3,740,377,901.253,740,377,901.25————

Note1:DetailsofrestrictedcashandbankbalancesaresetoutinNote(VIII)1.Note2:DetailsofpledgedequityaresetoutinNote(VIII)34.Note3:DetailsofmortgageborrowingsaresetoutinNote(VIII)24andNote(VIII)34.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

65.Provisionforimpairmentofassetsandprovisionforcreditloss

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2022EffectofchangesinthescopeofconsolidationProvisionfortheyearReversalfortheyearWrite-offandcharge-offfortheyearTransfer-outduetosaleinthecurrentyearOtherincreasesfortheyearOtherdecreasesfortheyearEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies31/12/2023
Provisionforcreditlossofaccountsreceivable94,013,267.44-5,662,552.8920,976,076.79-11,690,687.60-8,087,700.00---1,473,959.3591,022,363.09
Provisionforcreditlossofotherreceivables1,003,685,597.76-581,674.483,495,816.21-47,368,017.09-73,074.00----2,076,917.54957,081,730.86
Provisionfordeclineinvalueofinventories1,326,130.64---99,456.13----7,953.871,234,628.38
Provisionforcreditlossoflong-termreceivables3,875,396.19-921,438.82-3,618,668.31-----1,178,166.70
Provisionforimpairmentoflong-termequityinvestments357,168,270.27-------5,165,805.49362,334,075.76
Provisionforimpairmentoffixedassets63,574,868.76-149,923,619.44-----5,994.88213,504,483.08
Provisionforimpairmentofintangibleassets15,537,122.10-41,473,147.97------57,010,270.07
Provisionforimpairmentofgoodwill970,663,044.33--------970,663,044.33
Total2,509,843,697.49-6,244,227.37216,790,099.23-62,776,829.13-8,160,774.00---4,576,796.052,654,028,762.27

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

66.Othercomprehensiveincome,netoftaxDetailsaresetoutinNote(VIII)44.

67.Itemsincashflowstatement

(1)CashrelatingtooperatingactivitiesOthercashreceiptsrelatingtooperatingactivities

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item20232022
Interestincome316,807,536.02258,843,106.76
Governmentgrants163,169,407.30146,183,117.33
Guaranteesanddeposits59,967,562.0756,548,699.29
Insuranceindemnities11,868,450.0058,668,674.41
Rentals11,677,109.866,633,711.38
Others364,073,953.84614,917,616.16
Total927,564,019.091,141,794,925.33

Othercashpaymentsrelatingtooperatingactivities

Item20232022
Advancepayment191,928,420.03328,830,785.30
Operatingexpensessuchasoperatingcostsandadministrativeexpensesetc.167,200,604.70136,317,839.62
Guaranteesanddeposits59,616,680.6347,134,870.60
Rentals26,007,218.1422,559,158.93
Harborduesoncargo7,279,452.4614,619,372.24
Portcharges5,743,216.195,422,920.14
Others395,451,467.06471,440,206.57
Total853,227,059.211,026,325,153.40

(2)CashrelatingtoinvestingactivitiesCashreceiptsrelatingtosignificantinvestingactivities

Item20232022
Recoveredstructureddeposits28,397,000,000.0040,874,000,000.00
Recoveredlending(Note1)2,965,681,743.10-
Dividendsreceived2,186,696,975.692,239,605,794.55
Fundsfordisposalofsubsidiariesreceived(Note2)1,683,385,533.43-
Total35,232,764,252.2243,113,605,794.55

Note1:ItrepresentstherecoveryofRMB2,965,681,743.10lenttoTerminalLinkSAS.Note2:Thefundsreceivedfordisposalofsubsidiariesduringtheyearrepresenttheamount

receivedfordisposalofNingboDaxie.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

67.Itemsincashflowstatement-continued

(2)Cashrelatingtoinvestingactivities-continuedCashpaymentsrelatingtosignificantinvestingactivities

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item20232022
Purchaseofstructureddeposits29,967,000,000.0036,954,000,000.00
Investmentfunds-17,549,460,113.25
Total29,967,000,000.0054,503,460,113.25

Othercashreceiptsrelatingtoinvestingactivities

Item20232022
RecoveredlendingbyTerminalLinkSAS2,965,681,743.10-
Interestonadvancesfortheproject177,940,904.60169,844,015.81
Netcashreceiptsfromacquisitionofsubsidiariesandotherbusinessunits-74,295,900.85
Recoveredprincipalfortheadvancesoftheproject-45,535,614.18
Others21,332,655.575,388,978.50
Total3,164,955,303.27295,064,509.34

Othercashpaymentsrelatingtoinvestingactivities

Item20232022
Performanceguaranteesforprojectdevelopment39,087,797.69-
Disposalofequityofsubsidiaries35,267,442.35-
PaymentoftaxesonlandacquisitionandreservebyAnTongJieTerminalWarehouseService(Shenzhen)Co.,Ltd.("ATJ")-947,426,040.54
Others8,308,063.297,376,441.76
Total82,663,303.33954,802,482.30

(3)CashrelatingtofinancingactivitiesOthercashreceiptsrelatingtofinancingactivities

Item20232022
Saleandleasebackproceeds328,026,212.5050,000,000.00
Others6,728,017.136,303,169.80
Total334,754,229.6356,303,169.80

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

67.Itemsincashflowstatement-continued

(3)Cashrelatingtofinancingactivities-continuedOthercashpaymentsrelatingtofinancingactivities

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item20232022
Repaymentofperpetualbonds4,222,148,460.84-
PaymentfortheCompany'sacquisitionofminorityinterestsofCMPort872,848,916.41660,552,076.54
Leaseexpensespaid829,455,300.35422,373,905.31
PaymentfortheCompany'sacquisitionofminorityinterestsofOasisKingInternationalLimited818,659,106.04-
PaymentfortheCompany'sacquisitionofminorityinterestsofCMInternationalTech109,901,500.00-
Paymentfornon-publicsharesissuedbytheCompany-7,778,570.52
Others14,080,546.6833,412,187.98
Total6,867,093,830.321,124,116,740.35

Changesinliabilitiesarisingfromfinancingactivities

Item31/12/2022IncreasefortheyearDecreasefortheyear31/12/2023
CashchangesNon-cashchangesCashchangesNon-cashchanges
Short-termborrowings7,164,338,366.1818,324,960,509.40531,121,750.3910,306,375,337.00-15,714,045,288.97
Long-termborrowings12,390,099,177.8511,091,911,738.15-4,325,439,446.26929,027,515.0318,227,543,954.71
Non-currentliabilitiesduewithinoneyear11,641,223,688.95-7,930,642,448.3312,695,530,031.3158,931,816.726,817,404,289.25
Bondspayable19,088,293,099.02-199,215,465.13-5,000,000,000.0014,287,508,564.15
Leaseliabilities948,350,914.04-404,265,256.81114,686,862.61236,757,101.321,001,172,206.92
Dividendspayable92,374,921.29-2,924,344,643.642,880,173,694.9724,648,655.69111,897,214.27
Othercurrentliabilities3,017,713,424.646,328,026,212.5077,180,966.077,415,730,466.23-2,007,190,136.98
Total54,342,393,591.9735,744,898,460.0512,066,770,530.3737,737,935,838.386,249,365,088.7658,166,761,655.25

(4)TheCompanyhasnocashflowspresentedonanetbasis

(5)Significantactivitiesthatdonotinvolvecashreceiptsandpaymentforthecurrentperiod

buthaveanimpactontheenterprise'sfinancialpositionormayaffecttheenterprise'scashflowsinthefutureandtheirfinancialeffects:

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

68.Supplementaryinformationtothecashflowstatement

(1)Supplementaryinformationtothecashflowstatement

CHINAMERCHANTSPORTGROUPCO.,LTD.Supplementaryinformation

Supplementaryinformation20232022(Restated)
1.Reconciliationofnetprofittocashflowsfromoperatingactivities:————
Netprofit7,495,612,085.768,231,903,300.27
Add:Provisionforimpairmentofassets191,297,311.2822,159,020.20
Provisionforimpairmentofcredit-37,284,041.18223,473,576.55
Depreciationoffixedassets1,983,548,731.362,015,080,231.04
Depreciationofinvestmentproperties182,833,076.22184,276,397.36
Depreciationofright-of-useassets357,502,960.45349,846,619.98
Amortizationofintangibleassets686,879,674.72663,429,174.32
Amortizationoflong-termprepaidexpenses92,971,461.6784,874,394.19
Losses(Gains)fromdisposaloffixedassets,intangibleassetsandotherlong-termassets(Lossesaremarkedwith"-")-36,759,532.61-55,130,095.52
Lossesonretirementoffixedassets,intangibleassetsandotherlong-termassets22,581,096.79159,482,391.55
Losses(Gains)fromchangesinfairvalue(Lossesaremarkedwith"-")-73,352,800.52129,033,650.11
Financialexpenses2,185,350,735.702,532,320,466.47
Investmentloss(income)(Lossesaremarkedwith"-")-6,348,676,940.80-7,377,655,506.33
Decreaseindeferredtaxassets19,435,343.9220,145,903.44
Increaseindeferredtaxliabilities154,719,636.24221,384,317.36
Decrease(Increase)ininventories(Lossesaremarkedwith"-")6,316,130.87-30,798,761.65
Decrease(Increase)inoperatingreceivables(Lossesaremarkedwith"-")-132,511,582.62-245,987,914.80
Increase(Decrease)inoperatingpayables(Lossesaremarkedwith"-")-170,856,712.08-207,459,774.19
Netcashflowsfromoperatingactivities6,579,606,635.176,920,377,390.35
2.Significantinvestingandfinancingactivitiesthatdonotinvolvecashreceiptsandpayments:————
Conversionofdebtintocapital--
Convertiblebondsduewithinoneyear--
3.Netchangesincashandcashequivalents:——
Closingbalanceofcash16,018,613,631.1013,567,309,471.62
Less:Openingbalanceofcash13,567,309,471.6212,727,355,238.36
Add:Closingbalanceofcashequivalents--
Less:Openingbalanceofcashequivalents--
Netincreaseincashandcashequivalents2,451,304,159.48839,954,233.26

(2)Cashandcashequivalents

Item31/12/202331/12/2022
I.Cash16,018,613,631.1013,567,309,471.62
Including:Cashonhand974,692.93726,960.10
Bankdepositsavailableforpaymentatanytime16,009,954,475.8513,045,336,190.09
Othermonetaryfundsavailableforpaymentatanytime7,684,462.32521,246,321.43
II.Cashequivalents--
III.Balanceofcashandcashequivalentsattheendoftheyear16,018,613,631.1013,567,309,471.62

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

68.Supplementaryinformationtothecashflowstatement-continued

(3)Netcashreceiptsfromdisposalofsubsidiaries

CHINAMERCHANTSPORTGROUPCO.,LTD.Amount

Amount
Cashorcashequivalentsreceivedinthecurrentyearfromdisposalofsubsidiariesinthecurrentyear1,797,936,550.00
Including:NingboDaxie1,714,909,050.00
DalianPortLogisticsNetworkCo.,Ltd.63,716,000.00
YingkouGangxinTechnologyCo.,Ltd.19,311,500.00
Less:Cashandcashequivalentsheldbysubsidiariesonthedatewhencontrolislost149,818,458.92
Including:NingboDaxie31,523,516.57
DalianPortLogisticsNetworkCo.,Ltd.86,068,813.26
YingkouGangxinTechnologyCo.,Ltd.32,226,129.09
Add:Cashorcashequivalentsreceivedinthecurrentyearfromdisposalofsubsidiariesinpriorperiods-
Including:NingboDaxie-
DalianPortLogisticsNetworkCo.,Ltd.-
YingkouGangxinTechnologyCo.,Ltd.-
Netcashreceiptsfromdisposalofsubsidiaries1,648,118,091.08

(4)TheCompanyhasnoitemswithrestrictedusebutarestillpresentedascashandcash

equivalents.

(5)Cashandbankbalancesnotclassifiedascashandcashequivalents

Items20232022Reason
Restrictedguarantees44,697,370.169,297,145.94Restrictedscopeofuse
Interestreceivablefrombankdeposits14,497,091.0016,126,969.60Notactuallyreceived
Fundsfrozenforlitigation1,826,085.98-Notavailableforwithdrawalatanytime
GuaranteesfrozenforETC12,000.0012,000.00Notavailableforwithdrawalatanytime
Interestontimedeposit-23,183,152.24Notactuallyreceived
Total61,032,547.1448,619,267.78/

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

69.Foreigncurrencymonetaryitems

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemClosingbalanceinforeigncurrencyExchangerateClosingbalanceinRMB
Cashandbankbalances2,988,104,992.31
Including:HKD19,647,056.770.906217,804,555.79
USD317,185,988.337.08272,246,533,199.54
RMB408,295,641.991.0000408,295,641.99
EUR40,140,420.787.8592315,471,594.99
Accountsreceivable173,075,521.17
Including:HKD512,979.310.9062464,872.11
USD1,423,085.417.082710,079,287.03
EUR20,680,395.217.8592162,531,362.03
Otherreceivables799,457,535.30
Including:HKD524,271,214.690.9062475,105,060.18
USD1,343,324.847.08279,514,366.84
EUR9,691,705.647.859276,169,052.97
RMB238,669,055.311.0000238,669,055.31
Long-termreceivables282,209,825.00
Including:EUR25,995,028.127.8592204,300,125.00
Short-termborrowings6,885,485,000.00
USD550,000,000.007.08273,895,485,000.00
RMB2,990,000,000.001.00002,990,000,000.00
Accountspayable40,104,170.70
Including:HKD1,173,832.480.90621,063,750.47
USD44,617.497.0827316,012.30
EUR4,927,270.967.859238,724,407.93
Otherpayables668,048,202.56
Including:HKD32,251,917.270.906229,227,332.47
USD39,743,432.267.0827281,490,807.67
EUR13,924,592.037.8592109,436,153.68
RMB247,893,908.741.0000247,893,908.74
Non-currentliabilitiesduewithinoneyear175,706,225.87
Including:USD23,489,155.237.0827166,366,639.76
RMB9,339,586.111.00009,339,586.11
Long-termborrowings4,656,000,000.00
Including:RMB4,656,000,000.001.00004,656,000,000.00
Bondspayable11,287,508,564.15
Including:USD1,593,673,113.957.082711,287,508,564.15
Long-termpayables9,391,615.50
Including:HKD2,366,680.970.90622,144,733.63
USD1,023,180.697.08277,246,881.87

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

70.Leases

(1)Lessorunderoperatinglease

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemAmount
I.Revenue——
Leaseincome288,005,772.42
Including:Incomerelatedtovariableleasepaymentsthatarenotincludedinleasereceipts-
II.Undiscountedleasereceiptsreceivedafterthebalancesheetdate——
1styear206,915,451.16
2ndyear144,032,701.64
3rdyear118,298,471.55
4thyear83,869,818.08
5thyear45,923,854.38
Over5years121,551,555.20

Note:TheoperatingleaseswheretheGroupactsasthelessorarerelatedtoportandterminal

facilities,machineryandequipment,vehicles,landandbuildings,withleasetermsrangingfrom1monthto50yearsandoptiontorenewtheleaseofportandterminalfacilities,machineryandequipment,landandbuildings.TheGroupconsidersthattheunguaranteedbalanceofleasedassetsdoesnotconstitutesignificantriskoftheGroup,astheassetsareproperlyused.

(2)Lessee

ItemAmount
Interestexpensesonleaseliabilities60,834,329.16
Short-termleaseexpensesthatareaccountedforusingsimplifiedapproachandincludedincostofrelatedassetsorprofitorlossfortheperiod55,635,496.52
Expensesonleasesoflow-valueassets(exclusiveofexpensesonshort-termleasesoflow-valueassets)thatareaccountedforusingsimplifiedapproachandincludedincostofrelatedassetsorprofitorlossfortheperiod2,564,521.41
Variableleasepaymentsthatareincludedincostofrelatedassetsorprofitorlossbutnotincludedinmeasurementofleaseliabilities-
Including:Theportionarisingfromsaleandleasebacktransactions-
Incomefromsub-leaseofright-of-useassets11,364,199.51
Totalcashoutflowsrelatingtoleases837,856,182.83
Income(loss)fromsaleandleasebacktransactions61,743,409.02
Cashinflowsfromsaleandleasebacktransactions328,026,212.50
Cashoutflowsfromsaleandleasebacktransactions520,496,584.08
Others-

-144-

(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

70.Leases-continued

(2)Lessee-continuedSaleandleasebacktransactionsandbasisfordetermination:

Note:Forthepurposeofraisingfundsandleasingbackforuse,theCompanycarriesoutsale

andleasebacktransactionwiththelegallyownedterminalassetsasthesubjectofthetransferandtheleasedassets,foratermofthreeyears.AstheCompanyisentitledtorepurchaseattheexpiryoftheleasetermandtherepurchasepriceisnotlowerthantheoriginalsellingprice,itisconsideredasafinancingtransactionandisrecognizedasalong-termpayablewhentheamountisreceivedfromthelessor,andthedifferencebetweentheoriginalsellingpriceandtherepurchasepriceisrecognizedasinterestexpenses.(IX)R&DEXPENDITURE

1.Disclosurebynatureofexpenses

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item20232022
Employeebenefits166,273,348.83222,334,684.01
DirectmaterialsandoutsourcedR&D78,769,899.8457,140,031.23
Depreciationandamortisation11,654,856.9016,295,546.56
Others15,963,664.5423,694,839.98
Total272,661,770.11319,465,101.78
Including:R&Dexpenditurerecordedasexpenses223,739,072.07287,706,178.70
R&Dexpenditurecapitalised48,922,698.0431,758,923.08

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(IX)R&DEXPENDITURE-continued

2.DevelopmentexpenditureforR&Dprojectsthatqualifyforcapitalisation

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2022IncreaseDecrease31/12/2023
InternaldevelopmentexpenditureRecognisedasfixedassetsRecognisedasintangibleassetsTransferredtoprofitorlossfortheperiod
Eport-30,150,532.71---30,150,532.71
OtherR&Dprojects17,412,196.1619,364,847.3415,065,485.70279,255.32592,682.0120,839,620.47
Total17,412,196.1649,515,380.0515,065,485.70279,255.32592,682.0150,990,153.18

(X)CHANGESINSCOPEOFCONSOLIDATION

1.DisposalofsubsidiariesLossofcontroloversubsidiaries

NameofthesubsidiaryPointintimeoflosingcontrolDisposalconsiderationatpointintimeoflosingcontrolDisposalproportionatpointintimeoflosingcontrol(%)DisposalapproachatpointintimeoflosingcontrolDeterminationbasisforpointintimeoflosingcontrolDifferencebetweendisposalconsiderationandsharesofcorrespondingnetassetsofthesubsidiaryatconsolidatedlevelProportionofremainingequityatthedateoflosingcontrol(%)Amountofothercomprehensiveincomerelatedtoequityinvestmentsoftheoriginalsubsidiarytransferredtoinvestmentgainsorlossesorretainedearnings
NingboDaxieAugust20231,845,000,000.0045.00TransferofequityCompletionoftransactionandtransferofcontrol205,336,602.02--
DalianPortLogisticsNetworkCo.,Ltd.November202363,716,000.0079.03TransferofequityCompletionoftransactionandtransferofcontrol19,694,127.20--
GangxinTechnologyNovember202319,311,500.00100.00TransferofequityCompletionoftransactionandtransferofcontrol-8,080,826.75--

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(XI)EQUITYINOTHERENTITIES

1.Interestsinsubsidiaries

(1)CompositionoftheGroup-Majorsubsidiaries

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthesubsidiary

NameofthesubsidiaryPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessRegisteredcapital(RMB'0000,unlessotherwisespecified)ShareholdingratiooftheCompany(%)Acquisitionmethod
DirectIndirect
ShenzhenChiwanInternationalFreightAgencyCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices550.00100.00-Establishedthroughinvestment
ChiwanWharfHoldings(HongKong)Ltd.(WharfHoldingsHongKong)HKChinaHKChinaInvestmentholdingHKD1,000,000100.00-Establishedthroughinvestment
DongguanShenchiwanPortAffairsCo.,Ltd.DongguanChinaDongguanChinaLogisticssupportservices45,000.0085.00-Establishedthroughinvestment
DongguanShenchiwanWharfCo.,Ltd.DongguanChinaDongguanChinaLogisticssupportservices40,000.00100.00-Establishedthroughinvestment
ShenzhenChiwanHarborContainerCo.Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices28,820.00100.00-Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenChiwanPortDevelopmentCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices10,000.00100.00-Businesscombinationinvolvingenterprisesundercommoncontrol
ChiwanContainerTerminalCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservicesUSD95,300,00055.0020.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenChiwanTugboatCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices2,400.00100.00-Businesscombinationinvolvingenterprisesundercommoncontrol
ChiwanShipping(HongKong)LimitedHKChinaHKChinaLogisticssupportservicesHKD800,000100.00-Businesscombinationinvolvingenterprisesundercommoncontrol
CMPort(Note1)HKChinaHKChinaInvestmentholdingHKD48,730,938,8000.3848.90Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsBondedLogisticsCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices70,000.0040.0060.00Businesscombinationinvolvingenterprisesundercommoncontrol
CMInternationalTechShenzhenChinaShenzhenChinaITservice8,784.8256.2643.74Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsInternational(China)InvestmentCo.,Ltd.ShenzhenChinaShenzhenChinaInvestmentholdingUSD67,400,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsInternationalContainerTerminal(Qingdao)Co.,Ltd.QingdaoChinaQingdaoChinaLogisticssupportservicesUSD206,300,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsContainerServicesLimitedHKChinaHKChinaLogisticssupportservicesHKD500,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsPort(Shenzhen)Co.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices55,000.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenHaiqinProjectManagementCo.,Ltd.ShenzhenChinaShenzhenChinaEngineeringsupervisionservice1,000.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ATJShenzhenChinaShenzhenChinaPreparationforthewarehousingprojectHKD100,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ASJShenzhenChinaShenzhenChinaPreparationforthewarehousingprojectHKD100,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsInternationalTerminal(Qingdao)Co.,Ltd.QingdaoChinaQingdaoChinaLogisticssupportservicesUSD44,000,000-90.10Businesscombinationinvolvingenterprisesundercommoncontrol
CICTSriLankaSriLankaLogisticssupportservicesUSD150,000,100-85.00Businesscombinationinvolvingenterprisesundercommoncontrol
MagangGodown&WharfShenzhenChinaShenzhenChinaLogisticssupportservices33,500.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenMawanPortServicesCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices20,000.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ZhangzhouChinaMerchantsTugboatCo.,Ltd.ZhangzhouChinaZhangzhouChinaLogisticssupportservices1,500.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ZhangzhouChinaMerchantsPortCo.,Ltd.ZhangzhouChinaZhangzhouChinaLogisticssupportservices116,700.00-60.00Businesscombinationinvolvingenterprisesundercommoncontrol
ZhangzhouInvestmentPromotionBureauXiamenwanPortAffairsCo.,Ltd.("XiamenwanPortAffairs")(Note2)ZhangzhouChinaZhangzhouChinaLogisticssupportservices44,450.00-31.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShekouContainerTerminalsLtd.ShenzhenChinaShenzhenChinaLogisticssupportservicesHKD618,201,200-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenLianyunjieContainerTerminalsCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices60,854.90-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
AnxunjieContainerTerminals(Shenzhen)Co.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices127,600.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
AnyunjiePortWarehousingService(Shenzhen)Co.,Ltd.ShenzhenChinaShenzhenChinaPreparationforthewarehousingproject6,060.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol

-147-

(XI)EQUITYINOTHERENTITIES-continued

1.Interestsinsubsidiaries-continued

(1)CompositionoftheGroup-Majorsubsidiaries-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthesubsidiary

NameofthesubsidiaryPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessRegisteredcapital(RMB'0000,unlessotherwisespecified)ShareholdingratiooftheCompany(%)Acquisitionmethod
DirectIndirect
ShenzhenHaixingShenzhenChinaShenzhenChinaLogisticssupportservices53,072.92-67.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenLianyongtongTerminalCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservicesUSD7,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
YidePortFoshanChinaFoshanChinaLogisticssupportservices21,600.0051.00-Businesscombinationinvolvingenterprisesundercommoncontrol
MegaSCTBVIBVIInvestmentholdingUSD120.00-80.00Businesscombinationinvolvingenterprisesundercommoncontrol
OasisKingInternationalLimitedBVIBVIInvestmentholdingUSD100.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
LomeContainerTerminalS.A.(Note3)RepublicofTogoRepublicofTogoLogisticssupportservicesXOF200,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
GainproResourcesLimitedBVIBVIInvestmentholdingUSD1.00-76.47Businesscombinationinvolvingenterprisesundercommoncontrol
HambantotaInternationalPortGroup(Private)LimitedSriLankaSriLankaLogisticssupportservicesUSD1,145,480,000-85.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShantouportShantouChinaShantouChinaLogisticssupportservices12,500.00-60.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenJinyuRongtaiInvestmentDevelopmentCo.,Ltd.ShenzhenChinaShenzhenChinaPropertylease,etc.80,000.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenMerchantsQianhaiwanRealEstateCo.,LtdShenzhenChinaShenzhenChinaPropertylease,etc.20,000.00-100.00Assetacquisition
JuzhongzhiInvestment(Shenzhen)Co.,Ltd.ShenzhenChinaShenzhenChinaInvestmentconsulting4,000.00-75.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenLiandaTugboatCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices200.00-60.29Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaOceanShippingTallyZhangzhouCo.,Ltd.ZhangzhouChinaZhangzhouChinaLogisticssupportservices200.00-84.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsHoldings(Djibouti)FZEDjiboutiDjiboutiLogisticssupportservicesUSD38,140,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
XindaResourcesLimitedBVIBVIInvestmentholdingUSD107,620,000-77.45Businesscombinationinvolvingenterprisesundercommoncontrol
KongRiseDevelopmentLimitedHKChinaHKChinaInvestmentholdingUSD107,620,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
TCPBrazilBrazilLogisticssupportservicesBRL68,851,600-100.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
DirecetAchieveInvestmentsLimitedHKChinaHKChinaInvestmentholdingUSD814,781,300-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ZhoushanRoRoZhoushanChinaZhoushanChinaLogisticssupportservices17,307.8651.00-Assetacquisition
ShenzhenHaixingLogisticsDevelopmentCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices7,066.79-100.00Assetacquisition
ZhanjiangPortZhanjiangChinaZhanjiangChinaLogisticssupportservices587,420.9130.7827.58Businesscombinationnotinvolvingenterprisesundercommoncontrol
ZhanjiangPortInternationalContainerTerminalCo.,Ltd.ZhanjiangChinaZhanjiangChinaLogisticssupportservices60,000.00-80.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ZhanjiangPortPetrochemicalTerminalCo.,Ltd.(Note4)ZhanjiangChinaZhanjiangChinaLogisticssupportservices18,000.00-50.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ChinaOceanShippingTallyCo.,Ltd.,ZhanjiangZhanjiangChinaZhanjiangChinaLogisticssupportservices300.00-84.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ZhanjiangPortDonghaidaoBulkCargoTerminalCo.,Ltd.ZhanjiangChinaZhanjiangChinaLogisticssupportservices5,000.00-100.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ZhanjiangPortLogisticsZhanjiangChinaZhanjiangChinaLogisticssupportservices10,000.00-100.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
GuangdongZhanjiangPortLongtengShippingCo.,Ltd.ZhanjiangChinaZhanjiangChinaLogisticssupportservices9,000.00-51.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ShantouHarborTowageServiceCo.,Ltd.ShantouChinaShantouChinaLogisticssupportservices1,000.00-100.00Establishedthroughinvestment
SanyaMerchantsPortDevelopmentCo.,Ltd.SanyaChinaSanyaChinaLogisticssupportservices1,000.0051.00-Establishedthroughinvestment
MalaiWarehousing(Shenzhen)Co.,LtdShenzhenChinaShenzhenChinaOwningChinaQianhaipropertyHKD1,600,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
PortsDevelopment(HongKong)LimitedHongKongChinaHongKongChinaInvestmentholding2,768,291.56100.00-Establishedthroughinvestment
ShunkongPortFoshanChinaFoshanChinaPropertydevelopmentandmanagement34,489.7951.00-Assetacquisition
SouthAsiaTradeandLogisticsCenterCo.,Ltd.("SACL")(Note5)SriLankaSriLankaLogisticssupportservicesUSD37,140,000-70.00Establishedthroughinvestment

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(XI)EQUITYINOTHERENTITIES-continued

1.Interestsinsubsidiaries-continued

(1)CompositionoftheGroup-Majorsubsidiaries-continuedNote1:On19June2018,theCompanyandChinaMerchantsGroup(HongKong)Co.,Ltd.

("CMHK")enteredintoan"AgreementofConcertedActiononChinaMerchantsPortHoldingsCompanyLimited".Accordingtotheagreement,CMHKunconditionallykeepsconsistentwiththeCompanywhenvotingforthemattersdiscussedatthegeneralshareholders'meetingofCMPortinrespectofitsvotingpowerofCMPortasentrusted,andperformsthevotingaspertheCompany'sopinion.InMarch2022,theCompanytransferredits43.00%equitycontributioninChinaMerchantsPortHoldingsCompanyLimitedtothewholly-ownedsubsidiaryPortsDevelopment(HongKong)Co.,Ltd.InJuneandOctober2023,CMPortrespectivelydistributed2022dividendsand2023interimdividendstoshareholders.Theshareholdersmayselecttoreceivethedividendsallincashorshares,orreceivethedividendspartincashandpartinnewshares.TheCompanyandPortsDevelopment(HongKong)Co.,Ltd.selecttoreceivealldividendsattributabletotheirshareholdingsinCMPortintheformofshares,andCMHKselectstoreceivethe2022dividendsincashandthe2023interimdividendsattributabletoitsshareholdinginCMPortintheformofshares.In2023,PortsDevelopment(HongKong)Co.,Ltd.acquired94,702,000ordinarysharesofCMPortfromthesecondarymarket.Uponthecompletionofabovedistributionandthetransaction,theproportionoftheordinarysharesofCMPortheldbytheGrouptothetotalissuedordinarysharesofCMPortwaschangedfrom45.69%to49.28%,whiletheproportionoftheordinarysharesofCMPortheldbyCMHKtothetotalissuedordinarysharesofCMPortwaschangedfrom22.42%to21.85%.Therefore,theCompanyhas71.13%votingpoweronCMPortintotalandisabletoexercisecontroloverCMPort.Note2:TheGroupandChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.enteredinto

an"EquityCustodyAgreement",accordingtowhichChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.entrustedits29%equityofZCMGtotheGroupforoperationandmanagement.Therefore,theGrouphas60%votingpowerofZCMGandincludesitinthescopeofconsolidationoftheconsolidatedfinancialstatements.Note3:TheGroupisentitledtothenominationofmostmembersoftheexecutivecommission

andhascontroloverLomeContainerTerminalS.A.Therefore,theGroupincludesitinthescopeofconsolidationoftheconsolidatedfinancialstatements.Note4:TheGroupholds50%equityinterestinZhanjiangPortPetrochemicalTerminalCo.,Ltd.

Accordingtotheagreement,theGrouphascontroloverZhanjiangPortPetrochemicalTerminalCo.,Ltd.,andthereforeincludesitinthescopeofconsolidationoftheconsolidatedfinancialstatements.Note5:SACLisalimitedliabilitycompanyestablishedbyCMPortinSriLankaon21April

2023.

-149-

(XI)EQUITYINOTHERENTITIES-continued

1.Interestsinsubsidiaries-continued

(2)Significantnon-wholly-ownedsubsidiaries

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofthesubsidiary

NameofthesubsidiaryProportionofownershipinterestheldbytheminorityshareholders(%)ProfitorlossattributabletominorityshareholdersinthecurrentyearDividendsdistributedtominorityshareholdersinthecurrentyearBalanceofminorityinterestsattheendoftheyear
CMPort50.723,790,168,766.291,716,130,041.1461,593,070,426.41

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(XI)EQUITYINOTHERENTITIES-continued

1.Interestsinsubsidiaries-continued

(3)Majorfinancialinformationofsignificantnon-wholly-ownedsubsidiaries

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthesubsidiary

Nameofthesubsidiary31/12/202331/12/2022
CurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilitiesCurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilities
CMPort15,917,026,132.04135,313,877,243.36151,230,903,375.4018,457,977,486.5327,802,818,508.4546,260,795,994.9812,837,082,258.94137,558,098,661.09150,395,180,920.0318,761,895,893.6025,152,356,977.5043,914,252,871.10

Nameofthesubsidiary

Nameofthesubsidiary20232022
OperatingincomeNetprofitTotalcomprehensiveincomeCashflowsfromoperatingactivitiesOperatingincomeNetprofitTotalcomprehensiveincomeCashflowsfromoperatingactivities
CMPort10,503,277,811.446,466,697,575.117,608,794,449.884,852,710,141.5210,926,649,847.417,771,272,424.879,468,881,467.495,181,954,271.51

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(XI)EQUITYINOTHERENTITIES-continued

2.Transactionsresultingfromchangesinownershipinterestsinsubsidiarieswithout

losingcontroloverthesubsidiaries

(1)DescriptionofchangesinownershipinterestsinsubsidiariesDuringtheyear,theGroup'sownershipinterestsinCMPortischangedfrom45.69%to49.28%.DetailsaresetoutinNote(XI)1(1).Duringtheyear,theGroup'sownershipinterestsinCMInternationalTechischangedfrom

56.92%to100%.Duringtheyear,theGroup'sownershipinterestsinOasisKingInternationalLimitedischangedfrom70.00%to100%.

(2)Effectofthetransactionsonminorityinterestsandequityattributabletoownersofthe

Company

CHINAMERCHANTSPORTGROUPCO.,LTD.CMPort

CMPortCMInternationalTechOasisKingInternationalLimitedTotal
Acquisitioncost
-Cash880,259,262.73109,901,500.00818,659,106.041,808,819,868.77
-Fairvalueofnon-cashassets1,398,559,890.07--1,398,559,890.07
Totalacquisitioncost2,278,819,152.80109,901,500.00818,659,106.043,207,379,758.84
Less:Shareofnetassetsofsubsidiariescalculatedbasedontheproportionofequityacquired4,547,937,480.4182,775,475.48819,100,518.205,449,813,474.09
Difference-2,269,118,327.6127,126,024.52-441,412.16-2,242,433,715.25
Including:Adjustmenttocapitalreserve2,269,118,327.61-27,126,024.52441,412.162,242,433,715.25
Adjustmenttosurplusreserve----
Adjustmenttounappropriatedprofit----

3.Interestsinjointventuresandassociates

(1)Significantjointventuresorassociates

InvesteePrincipalplaceofbusinessPlaceofregistrationNatureofbusinessProportionofownershipinterestsheldbytheGroup(%)Accountingtreatmentofinvestmentsinassociates
DirectIndirect
Associate
SIPGShanghai,PRCShanghai,PRCPortandcontainerterminalbusiness-28.05Equitymethod
NingboZhoushanNingbo,PRCNingbo,PRCPortandcontainerterminalbusiness20.982.10Equitymethod

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(XI)EQUITYINOTHERENTITIES-continued

4.Keyfinancialinformationofsignificantassociate

CHINAMERCHANTSPORTGROUPCO.,LTD.SIPG

SIPG
31/12/2023/202331/12/2022/2022
Currentassets53,049,570,240.8746,525,054,810.02
Including:Cashandcashequivalents35,721,676,040.1426,843,326,028.04
Non-currentassets150,525,944,932.10135,276,650,788.84
Totalassets203,575,515,172.97181,801,705,598.86
Currentliabilities22,835,359,505.9825,863,891,496.14
Non-currentliabilities44,553,743,360.0034,770,765,671.21
Totalliabilities67,389,102,865.9860,634,657,167.35
Netassets136,186,412,306.99121,167,048,431.51
Minorityinterests13,010,972,126.118,839,640,972.54
NetassetsattributabletoownersoftheCompany123,175,440,180.88112,327,407,458.97
Shareofnetassetscalculatedbasedontheproportionofownershipinterests34,550,710,970.7431,507,837,792.24
Adjustments
-Goodwill2,427,508,397.272,427,508,397.27
-Others234,665,770.76236,552,011.66
Carryingamountofequityinvestmentsinassociates37,212,885,138.7734,171,898,201.17
Fairvalueofpubliclyquotedequityinvestmentsinassociates32,003,432,940.5034,877,210,592.30
Operatingincome37,551,570,005.5637,279,806,723.63
Netprofit14,007,787,452.3517,910,112,648.83
Othercomprehensiveincome-58,126,233.99-526,788,637.24
Totalcomprehensiveincome13,949,661,218.3617,383,324,011.59
Dividendsreceivedfromassociatesinthecurrentyear914,383,798.301,240,688,187.97

NingboZhoushan

NingboZhoushan
31/12/2023
Currentassets19,223,549,000.00
Including:Cashandcashequivalents9,635,337,000.00
Non-currentassets93,105,852,000.00
Totalassets112,329,401,000.00
Currentliabilities22,201,633,000.00
Non-currentliabilities9,429,720,000.00
Totalliabilities31,631,353,000.00
Netassets80,698,048,000.00
Minorityinterests5,828,457,000.00
NetassetsattributabletoownersoftheCompany74,869,591,000.00
Shareofnetassetscalculatedbasedontheproportionofownershipinterests17,279,901,602.80
Adjustments
-Goodwill1,231,115,756.87
-Others120,136,754.64
Carryingamountofequityinvestmentsinassociates18,631,154,114.31
Fairvalueofpubliclyquotedequityinvestmentsinassociates15,982,528,312.20
Operatingincome25,993,200,000.00
Netprofit5,156,174,000.00
Othercomprehensiveincome76,072,000.00
Totalcomprehensiveincome5,232,246,000.00
Dividendsreceivedfromassociatesinthecurrentyear390,875,794.33

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(XI)EQUITYINOTHERENTITIES-continued

4.Keyfinancialinformationofsignificantassociate-continuedNote:NingboZhoushanhasbecomeanimportantassociatethisyearandonlydisclosed

financialdataforthisyear,NingboZhoushan'sfinancialdataareaccuratetothenearestRMB1,000.00.

5.Summarizedfinancialinformationofinsignificantassociatesandjointventures

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item31/12/2023/202331/12/2022/2022(Restated)
Jointventures:————
Totalcarryingamountofinvestments8,957,993,335.229,716,793,055.72
Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest————
-Netprofit396,604,681.06419,341,721.80
-Othercomprehensiveincome-879,272,391.47175,421,702.38
-Totalcomprehensiveincome-482,667,710.41594,763,424.18
Associates:————
Totalcarryingamountofinvestments31,864,085,187.9748,475,602,662.16
Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest————
-Netprofit831,571,993.782,003,274,864.02
-Othercomprehensiveincome138,977,006.59-300,868,120.56
-Totalcomprehensiveincome970,549,000.371,702,406,743.46

6.TheinvesteeswheretheGroupholdslong-termequityinvestmentsarenotrestricted

totransferfundstotheGroup.(XII)GOVERNMENTGRANTS

1.Governmentgrantsrecognisedasreceivablesattheendofcurrentyear

Balanceofreceivablesasattheendofcurrentyear2,181,470.00

2.Liabilitiesinvolvinggovernmentgrants

Item31/12/2022NewgovernmentgrantsAmountincludedinnon-operatingincomeAmountincludedinotherincomeOtherchanges31/12/2023Relatedtoassets/income
Deferredincome1,031,273,189.7441,207,834.25-47,704,466.26-1,024,776,557.73Relatedtoassets
Total1,031,273,189.7441,207,834.25-47,704,466.26-1,024,776,557.73——

-154-

(XII)GOVERNMENTGRANTS-continued

3.Governmentgrantsincludedinprofitorloss

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item20232022
Businessdevelopmentsubsidy113,983,657.9194,355,004.33
Specialfundforoperation18,439,586.227,385,898.57
Steadypostsubsidies1,682,015.155,771,198.38
Others15,133,244.0642,331,663.35
Total149,238,503.34149,843,764.63

(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS

TheGroup'smajorfinancialinstrumentsincludecashandbankbalances,held-for-tradingfinancialassets,notesreceivable,accountsreceivable,receivablesfinancing,otherreceivables,long-termreceivables,othernon-currentfinancialassets,borrowings,notespayable,accountspayable,otherpayables,othercurrentliabilities,non-currentliabilitiesduewithinoneyear,bondspayable,long-termpayables,othernon-currentliabilities,etc.DetailsofthesefinancialinstrumentsaredisclosedinNote(VIII).Therisksassociatedwiththesefinancialinstrumentsandthepoliciesonhowtomitigatetheserisksaresetoutbelow.ManagementoftheGroupmanagesandmonitorstheseexposurestoensuretherisksaremonitoredatacertainlevel.TheGroupadoptssensitivityanalysistechniquetoanalysehowtheprofitandlossfortheperiodandshareholders'equitywouldhavebeenaffectedbyreasonablypossiblechangesintherelevantriskvariables.Asitisunlikelythatriskvariableswillchangeinanisolatedmanner,andtheinterdependenceamongriskvariableswillhavesignificanteffectontheamountultimatelyinfluencedbythechangesinasingleriskvariable,thefollowingarebasedontheassumptionthatthechangeineachriskvariableisonastand-alonebasis.

1.Riskmanagementobjectives,policiesandprocedures,andchangesfortheperiodTheGroup'sriskmanagementobjectivesaretoachieveaproperbalancebetweenrisksandyield,minimisetheadverseimpactsofrisksontheGroup'soperationperformance,andmaximisethebenefitsoftheshareholdersandotherstakeholders.Basedontheseriskmanagementobjectives,theGroup'sbasicriskmanagementstrategyistoidentifyandanalysetheGroup'sexposuretovariousrisks,establishanappropriatemaximumtolerancetorisk,implementriskmanagement,andmonitorsregularlyandeffectivelytheseexposurestoensuretherisksaremonitoredatacertainlevel.

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(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued

1.Riskmanagementobjectives,policiesandprocedures,andchangesfortheperiod

-continued

1.1Marketrisk

1.1.1CurrencyriskCurrencyriskistheriskthatlosseswilloccurbecauseofchangesinforeignexchangerates.TheGroup'sexposuretothecurrencyriskisprimarilyassociatedwithHKD,USDandEUR.Exceptforpartofthepurchasesandsales,theGroup'sotherprincipalactivitiesaredenominatedandsettledinRMB.Asat31December2023,thebalancesoftheGroup'sassetsandliabilitiesarebothdenominatedinfunctionalcurrency,exceptthattheassetsandliabilitiessetoutbelowarerecordedusingforeigncurrencies.CurrencyriskarisingfromtheforeigncurrencybalanceofassetsandliabilitiesmayhaveimpactontheGroup'sperformance.

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Cashandbankbalances487,182,682.32799,833,569.05
Accountsreceivable10,544,159.1429,766,083.42
Otherreceivables339,131,902.71360,531,571.16
Long-termreceivables204,300,125.00-
Short-termborrowings2,990,000,000.004,090,000,000.00
Accountspayable1,379,762.772,372,883.60
Otherpayables300,187,007.82246,131,122.92
Non-currentliabilitiesduewithinoneyear9,339,586.11670,000,000.00
Long-termborrowings4,656,000,000.003,669,000,000.00
Long-termpayables9,391,615.50-

TheGroupcloselymonitorstheeffectsofchangesintheforeignexchangeratesontheGroup'scurrencyriskexposures.Accordingtothecurrentriskexposureandjudgmentontheexchangeratemovements,themanagementconsidersitisunlikelythattheexchangeratechangesinthenextyearwillresultinsignificantlosstotheGroup.

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(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued

1.Riskmanagementobjectives,policiesandprocedures,andchangesfortheperiod

-continued

1.1Marketrisk-continued

1.1.1Currencyrisk-continuedSensitivityanalysisoncurrencyriskTheassumptionforthesensitivityanalysisoncurrencyriskisthatallthecashflowhedgesandhedgesofanetinvestmentinaforeignoperationarehighlyeffective.Onthebasisoftheaboveassumption,whereallothervariablesareheldconstant,thereasonablypossiblechangesintheforeignexchangeratemayhavethefollowingpre-taxeffectontheprofitorlossfortheperiodandshareholders'equity:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemChangesinexchangerate20232022
EffectonprofitEffectonshareholders'equityEffectonprofitEffectonshareholders'equity
Allforeigncurrencies5%increaseagainstRMB-362,713,439.88-362,713,439.88-383,846,068.61-383,846,068.61
Allforeigncurrencies5%decreaseagainstRMB362,713,439.88362,713,439.88383,846,068.61383,846,068.61
Allforeigncurrencies5%increaseagainstUSD-18,083,083.38-18,083,083.385,221,127.375,221,127.37
Allforeigncurrencies5%decreaseagainstUSD18,083,083.3818,083,083.38-5,221,127.37-5,221,127.37
Allforeigncurrencies5%increaseagainstHKD23,046,933.5823,046,933.583,837,255.043,837,255.04
Allforeigncurrencies5%decreaseagainstHKD-23,046,933.58-23,046,933.58-3,837,255.04-3,837,255.04
Allforeigncurrencies5%increaseagainstEUR(includingFCFA)11,592,634.5311,592,634.53419,047.06419,047.06
Allforeigncurrencies5%decreaseagainstEUR(includingFCFA)-11,592,634.53-11,592,634.53-419,047.06-419,047.06

1.1.2Interestraterisk-changesincashflowsRiskofchangesincashflowsoffinancialinstrumentsarisingfrominterestratechangesismainlyrelatedtobankloanswithfloatinginterestrate.(SeeNote(VIII)24andNote(VIII)34).TheGroupcontinuouslyandcloselymonitorstheimpactofinterestratechangesontheGroup'sinterestraterisk.TheGroup'spolicyistomaintaintheseborrowingsatfloatingrates.Presently,theGrouphasnoarrangementsuchasinterestrateswaps.

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(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued

1.Riskmanagementobjectives,policiesandprocedures,andchangesfortheperiod

-continued

1.1Marketrisk-continued

1.1.2Interestraterisk-changesincashflows-continuedSensitivityanalysisoninterestrateriskSensitivityanalysisoninterestrateriskisbasedonthefollowingassumptions:

?Fluctuationsofmarketinterestratecanaffecttheinterestincomeorexpenseofafinancial

instrumentwithfloatinginterestrate;?Forafinancialinstrumentatfairvaluewithfixedinterestrate,thefluctuationsofmarketinterest

ratecanonlyaffectitsinterestincomeorexpense;?Foraderivativefinancialinstrumentdesignatedashedginginstrument,thefluctuationsofmarket

interestrateaffectitsfairvalue,andallinterestratehedgesareexpectedtobehighlyeffective;?Thechangesinfairvalueofderivativefinancialinstrumentsandotherfinancialassetsand

liabilitiesarecalculatedusingcashflowdiscountingmethodbyapplyingthemarketinterestrateat

balancesheetdate.Onthebasisofaboveassumptions,wheretheothervariablesheldconstant,thepre-taxeffectofpossibleandreasonablechangesininterestrateontheprofitorlossfortheperiodandshareholders'equityareasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemChangesininterestrate20232022
EffectonprofitEffectonshareholders'equityEffectonprofitEffectonshareholders'equity
Short-termborrowingsandlong-termborrowings1%increase-342,406,182.88-342,406,182.88-207,621,560.74-207,621,560.74
Short-termborrowingsandlong-termborrowings1%decrease342,406,182.88342,406,182.88207,621,560.74207,621,560.74

1.2CreditriskAsat31December2023,theGroup'smaximumexposuretocreditriskwhichwillcauseafinanciallosstotheGroupduetofailuretodischargeanobligationbythecounterpartiesandfinancialguaranteesissuedbytheGroup(withoutconsideringtheavailablecollateralorothercreditenhancements)isarisingfromcashandbankbalances(Note(VIII),1),notesreceivable(Note(VIII),3),accountsreceivable(Note(VIII),4),otherreceivables(Note(VIII),7),long-termreceivables(Note(VIII),11),etc.Atthebalancesheetdate,thecarryingamountsoftheGroup'sfinancialassetsrepresentitsmaximumexposuretocreditrisk.Inaddition,theGroup'smaximumcreditriskexposuretocreditlossesincludestheamountoffinancialguaranteecontractasdisclosedinNote(XVII),2"Contingencies".

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(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued

1.Riskmanagementobjectives,policiesandprocedures,andchangesfortheperiod

-continued

1.2Creditrisk-continuedInordertominimisethecreditrisk,theGrouphasdelegatedadepartmentresponsiblefordeterminationofcreditlimits,creditapprovalsandothermonitoringprocedurestoensurethatfollow-upactionistakentorecoveroverduedebts.Inaddition,theGroupreviewstherecoverableamountoffinancialassetsateachbalancesheetdatetoensurethatadequateprovisionforcreditlossismadeforrelevantfinancialassets.Inthisregard,themanagementoftheGroupconsidersthattheGroup'screditriskissignificantlyreduced.Thecreditriskoncashandbankbalancesislimitedbecausetheyaredepositedwithfinancialinstitutionswithhighcreditratings.TheGrouphasnosignificantconcentrationofcreditrisk,withexposurespreadoveranumberofcounterpartiesandcustomers.TheGrouphasadoptedapolicytoensurethatallsalescustomershavegoodcreditrecords.

1.3LiquidityriskInthemanagementoftheliquidityrisk,theGroupmonitorsandmaintainsalevelofcashandcashequivalentsdeemedadequatebythemanagementtofinancetheGroup'soperationsandmitigatetheeffectsoffluctuationsincashflows.Themanagementmonitorstheutilisationofbankborrowingsandensurescompliancewithloancovenants.Asat31December2023,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsofRMB5,612,418,164.44.Asat31December2023,theGrouphadavailableandunusedlineofcreditandbondsamountingtoRMB69,439,268,355.68,whichisgreaterthanthebalanceofthenetcurrentliabilities.TheGroupcanobtainfinancialsupportfromtheavailablelineofcreditandbondswhenneeded.Therefore,theGroup'smanagementbelievesthattheGrouphasnosignificantliquidityrisk.ThefollowingisthematurityanalysisforfinancialassetsandfinancialliabilitiesheldbytheGroupwhichisbasedonundiscountedremainingcontractualobligations:

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCarryingamountGrossamountWithin1year1to5yearsOver5years
Short-termborrowings15,714,045,288.9716,173,813,350.9716,173,813,350.97--
Notespayable73,461,165.8273,461,165.8273,461,165.82--
Accountspayable691,765,137.25691,765,137.25691,765,137.25--
Otherpayables1,654,622,170.021,654,622,170.021,654,622,170.02--
Non-currentliabilitiesduewithinoneyear6,745,613,464.047,946,167,971.577,946,167,971.57--
Othercurrentliabilities2,143,842,534.532,153,429,383.852,153,429,383.85--
Long-termborrowings18,227,543,954.7119,240,642,199.11-17,013,554,984.112,227,087,215.00
Bondspayable14,287,508,564.1515,590,487,807.53-15,590,487,807.53-
Leaseliabilities1,001,172,206.922,484,068,796.64-282,009,548.652,202,059,247.99
Long-termpayables3,817,255,549.156,096,325,412.76-826,260,924.505,270,064,488.26
Related-partyguarantees347,437,758.18347,437,758.18114,527,259.00156,254,811.8676,655,687.32

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(XIV)DISCLOSUREOFFAIRVALUE

1.Closingbalanceofassetsandliabilitiesmeasuredatfairvalue

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemFairvalueat31/12/2023
Level1Level2Level3Total
FairvaluemeasurementFairvaluemeasurementFairvaluemeasurement
Continuouslymeasuredatfairvalue
Held-for-tradingfinancialassets-4,568,806,108.84-4,568,806,108.84
Receivablesfinancing--2,001,669.462,001,669.46
Investmentsinotherequityinstruments--157,461,648.16157,461,648.16
Othernon-currentfinancialassets850,222,729.23-27,353,713.60877,576,442.83
Totalassetscontinuouslymeasuredatfairvalue850,222,729.234,568,806,108.84186,817,031.225,605,845,869.29

2.Basisfordeterminingthemarketpriceofitemscontinuouslymeasuredatlevel1fair

valueThemarketpricesofheld-for-tradingfinancialassetsandothernon-currentfinancialassetsaredeterminedbasedontheclosingpriceoftheequityinstrumentsatStockExchangeat31December2023.

3.Qualitativeandquantitativeinformationofvaluationtechniquesandkeyparameters

adoptedforitemscontinuouslymeasuredatlevel2fairvalue

ItemFairvalueat31/12/2023ValuationtechniquesInputs
Held-for-tradingfinancialassets4,568,806,108.84CashflowdiscountingExpectedrateofreturn

Thefairvalueofdebtinstrumentsatfairvaluethroughprofitorlossisdeterminedusingthecashflowdiscountingapproach.Duringthevaluation,theGroupadoptstheexpectedreturnastheinput.

4.Qualitativeandquantitativeinformationofvaluationtechniquesandkeyparameters

adoptedforitemscontinuouslymeasuredatlevel3fairvalue

ItemFairvalueat31/12/2023ValuationtechniquesInputs
Receivablesfinancing2,001,669.46CashflowdiscountingDiscountrate
Investmentsinotherequityinstruments157,461,648.16NetworthmethodCarryingamount
Othernon-currentfinancialassets737,436.89NetworthmethodCarryingamount
Othernon-currentfinancialassets26,616,276.71ListedcompanycomparisonapproachShareprice

Thefairvalueofnon-listedequityinstrumentsincludedinequityinstrumentsatfairvaluethroughprofitorlossorothercomprehensiveincomeisdeterminedusingthevaluationtechniquessuchasnetworthmethod,listedcompanycomparisonapproachetc.

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(XIV)DISCLOSUREOFFAIRVALUE-continued

5.FairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalueThefinancialassetsandliabilitiesnotmeasuredatfairvaluemainlyincludenotesreceivable,accountsreceivable,otherreceivables,short-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayable,leaseliabilitiesandlong-termpayablesetc.TheGroup'smanagementbelievesthatthecarryingamountsoffinancialassetsandfinancialliabilitiesatamortizedcostinthefinancialstatementsapproximatetheirfairvalues.

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS

1.ParentoftheCompany

CHINAMERCHANTSPORTGROUPCO.,LTD.

NameoftheCompany

NameoftheCompanyRelatedpartyrelationshipTypeoftheentityPlaceofregistrationNatureofbusinessIssuedsharecapitalProportionofownershipinterestsheldbytheCompany(%)ProportionofvotingpowerheldbytheCompany(%)
BroadfordGlobalLimitedParentPrivatelimitedcompany(sharelimited)HongKongInvestmentholdingHKD21,120,986,2622.2163.01(Note)

Note:BroadfordGlobalLimiteddirectlyholds2.21%equityoftheCompany,andindirectlyholds14.84%and45.96%equityoftheCompany

throughthesubsidiariesChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.andChinaMerchantsPortInvestmentDevelopmentCompanyLimitedrespectively.TheultimatecontrollingshareholderoftheCompanyisChinaMerchantsGroup.

2.SubsidiariesoftheCompanyDetailsofthesubsidiariesoftheCompanyaresetoutinNote(X)1,Note(XI)1.

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

3.AssociatesandjointventuresoftheCompanyDetailsoftheCompany'ssignificantjointventuresandassociatesaresetoutinNote(XI)3.OtherjointventuresorassociatesthathaverelatedpartytransactionswiththeGroupinthecurrentyear,orformedbalancesofrelatedpartytransactionswiththeGroupintheprioryearareasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofjointventureorassociate

NameofjointventureorassociateRelationshipwiththeCompany
PortofNewcastleanditssubsidiariesJointventure
GuizhouEastLandPortOperationCo.,Ltd.Jointventure
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.Jointventure
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.Jointventure
QingdaoQianwanNewUnitedContainerTerminalCo.,Ltd.Jointventure
COSCOLogistics(Zhanjiang)Co.,Ltd.Jointventure
ChinaOceanShippingAgency(Zhanjiang)Co.,LtdJointventure
YantaiPortGroupLaizhouPortCo.,Ltd.Jointventure
QingdaoWutongCenturySupplyChainCo.,Ltd.Jointventure
ChinaMerchantsPort(Shenzhen)IndustrialInnovationPrivateEquityInvestmentFundPartnership(LimitedPartnership)("InvestmentFund")Jointventure
DoralehMulti-purposePortAssociate
GreatHornDevelopmentCompanyFZCoAssociate
InternationalDjiboutiIndustrialParksOperationFZCoAssociate
PortdeDjiboutiS.A.Associate
TerminalLinkSASAssociate
Tin-CanIslandContainerTerminalLtdAssociate
GuizhouQiandongnanContinentalLandPortOperationCo.,Ltd.Associate
NanshanGroupanditssubsidiariesAssociate
SIPGAssociate
NingboZhoushananditssubsidiariesAssociate
ShenzhenBaohongTechnologyCo.,Ltd.Associate
TianjinHaitianBondedLogisticsCo.,Ltd.Associate
MerchantsPortCityAssociate
ZhanjiangXiagangUnitedDevelopmentCo.,Ltd.Associate
ChuKongRiverTradeTerminalCo.,Ltd.Associate
ShantouZhonglianTallyCo.,LtdAssociate
ShantouInternationalContainerTerminalsLimitedAssociate
ShenzhenBayElectricityIndustryCo.,Ltd.Associate
TianjinPortContainerTerminalCo.,Ltd.Associate
LacAssalInvestmentHoldingCompanyLimitedAssociate
CMPortChuangrong(Shenzhen)TechnologyCo.,Ltd.Associate
NingboPortContainerTransportationCo.,Ltd.Associate
ShenzhenChiwanHaikeIndustrialOperationCo.,Ltd.Associate
LiaoningPortanditssubsidiariesAssociate,controlledbythesameultimatecontrollingshareholder
NewLand-SeaCorridorOperation(Zhanjiang)Co.,Ltd.Associate
AntongHoldingsanditssubordinatecompaniesAssociate

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

4.OtherrelatedpartiesoftheCompany

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofotherrelatedparties

NameofotherrelatedpartiesRelationshipwiththeCompany
ZhoushanBlueOceanInvestmentCo.,Ltd.Minorityshareholderofsubsidiary
SriLankaPortsAuthorityMinorityshareholderofsubsidiary
GuangdongShunkongCityInvestmentRealEstateCo.Ltd.Minorityshareholderofsubsidiary
ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd.Minorityshareholderofsubsidiary
DalianPortLogisticsTechnologyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
DalianPortCommunicationsEngineeringCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMarineShippingAgencyGuangdongCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
HoiTung(Shanghai)CompanyLimitedControlledbythesameultimatecontrollingshareholder
SouthChinaSinotransSupplyChainManagementCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
EuroAsiaDockyardEnterpriseandDevelopmentLimitedControlledbythesameultimatecontrollingshareholder
QingdaoBondedLogisticsParkSinotransWarehousingLogisticsCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
QingdaoSinotransSupplyChainManagementCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
PenavicoShenzhenWarehousingCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ShenzhenNanyou(Holdings)Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransShenzhenQianhaiSupplyChainManagementLtd.Controlledbythesameultimatecontrollingshareholder
ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsInternationalShippingAgency(Shenzhen)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsRealEstateCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ShenzhenMerchantstoHomeTechnologyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsShenzhenRo-RoShippingCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMarineShippingAgencyShenzhenCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
YiuLianDockyards(Shekou)LimitedControlledbythesameultimatecontrollingshareholder
YiuLianDockyardsLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsGroupFinanceCompanyLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsPortInvestmentDevelopmentCompanyLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantFood(China)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsTongshangFinanceLeaseCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsZhangzhouDevelopmentZonePowerSupplyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsSecuritiesCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaTrafficImportandExportCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransChanghangGroupLimitedControlledbythesameultimatecontrollingshareholder
ShenzhenDehanInvestmentDevelopmentCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMarineShippingAgencyGuangdongCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsHealthcare(Qichun)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaOceanShippingTallyShenzhenCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransCentralChinaCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
Sinotrans(HK)ShippingLimitedControlledbythesameultimatecontrollingshareholder
SinowayShippingLtd.Controlledbythesameultimatecontrollingshareholder

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

4.OtherrelatedpartiesoftheCompany-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofotherrelatedparties

NameofotherrelatedpartiesRelationshipwiththeCompany
ChinaMerchantsHeavyIndustry(Jiangsu)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransShantouCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchants-LogisticsShenzhenCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaOceanShippingAgencyShenzhenCo.Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMarineShippingAgencyNingboCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransContainerLines(HongKong)CompanyLimitedControlledbythesameultimatecontrollingshareholder
SinotransContainerLinesCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
YingkouPortGroupCo.,Ltd.anditssubsidiaries("YingkouPortGroup")Controlledbythesameultimatecontrollingshareholder
LiaoningPortGroupCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
LiaoningElectronicPortCo.,LtdControlledbythesameultimatecontrollingshareholder
ChinaYangtzeRiverShippingCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsGangrongBigDataCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
DalianPortConstructionSupervisionConsultingCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
DalianPortGroupCorporationLimitedControlledbythesameultimatecontrollingshareholder
DalianContainerTerminalCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ShenzhenWestPortSecurityServiceCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
DalianPortContainerControlledbythesameultimatecontrollingshareholder
ChinaMerchantsApartmentDevelopment(Shenzhen)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
DalianBondedZoneYongdexinRealEstateDevelopment&ConstructionCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
JifaLogisticsControlledbythesameultimatecontrollingshareholder
DalianJifaSouthCoastInternationalLogisticsCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
DalianJifaPortLogisticsCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
CHINAMERCHANTSSHIPPINGANDENTERPRISESCOMPANYLIMITEDControlledbythesameultimatecontrollingshareholder
NingboTransoceanInternationalForwardingAgencyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
QingdaoSinotransMiningTechnologyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
YingkouXingangKuangshiTerminalsCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
DandongPortGroupCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsPortandShippingDigitalTechnology(Liaoning)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
OceanDrillerIIILimitedControlledbythesameultimatecontrollingshareholder
DalianGanglongTechnologyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
QingdaoSinotransLogisticsCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ShenzhenWanhaiBuildingManagementCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder
ChinaMerchantsUnion(BVI)limitedSignificantlyinfluencedbytheultimatecontrollingshareholder
DatongSecuritiesCo.,LtdSignificantlyinfluencedbytheultimatecontrollingshareholder
DalianAutomobileTerminalCo.,LtdSignificantlyinfluencedbytheultimatecontrollingshareholder
DalianPortDesignResearchInstituteCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder
KhorAmbadoFZCoSignificantlyinfluencedbytheultimatecontrollingshareholder
ChinaMerchantsBankCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder
ChinaMerchants(Shenzhen)PowerSupplyCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder

-165-

(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions

(1)Renderingandreceiptofservices

CHINAMERCHANTSPORTGROUPCO.,LTD.

Relatedparty

RelatedpartyContentoftransactionPricingmethodanddecisionproceduresofrelatedtransactions20232022
Receiptofservices:
ShenzhenBayElectricityIndustryCo.,Ltd.ServiceexpenseNegotiation56,553,895.2355,476,519.62
ShenzhenNanyou(Holdings)Ltd.ServiceexpenseNegotiation37,373,052.065,764,441.32
ChinaMerchants(Shenzhen)PowerSupplyCo.,Ltd.ServiceexpenseNegotiation19,085,551.4217,893,208.32
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.ServiceexpenseNegotiation18,954,315.2518,229,532.95
ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd.ServiceexpenseNegotiation15,013,993.937,959,601.92
NanshanGroupanditssubsidiariesServiceexpenseNegotiation12,922,553.8820,553,330.63
OceanDrillerIIILimitedServiceexpenseNegotiation12,444,743.72-
ShenzhenWestPortSecurityServiceCo.,Ltd.ServiceexpenseNegotiation11,300,450.1811,952,754.94
YiuLianDockyardsLimitedServiceexpenseNegotiation8,104,140.518,489,653.19
NingboZhoushananditssubsidiariesServiceexpenseNegotiation7,569,178.7614,417,120.66
ChinaMerchantsZhangzhouDevelopmentZonePowerSupplyCo.,Ltd.ServiceexpenseNegotiation6,449,368.775,562,706.02
InternationalDjiboutiIndustrialParksOperationFZCoServiceexpenseNegotiation6,264,666.662,344,919.84
HoiTung(Shanghai)CompanyLimitedServiceexpenseNegotiation5,014,184.8519,923,373.82
ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd.ServiceexpenseNegotiation5,000,000.003,896,620.63
OtherrelatedpartiesServiceexpenseNegotiation37,272,690.4660,512,567.41
ChinaMerchantsBankCo.,Ltd.PurchaseofstructureddepositsNegotiation3,180,000,000.00900,061,111.11
ChinaMerchantsGroupFinanceCompanyLimitedInterestexpenseNegotiation26,303,900.6674,066,413.54
ChinaMerchantsBankCo.,Ltd.InterestexpenseNegotiation17,596,634.768,970,399.98
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.InterestexpenseNegotiation2,117,332.10724,437.17
Total3,485,340,653.201,236,798,713.07
Renderingofservice:
COSCOLogistics(Zhanjiang)Co.,Ltd.ServiceincomeNegotiation243,101,038.82203,783,472.45
AntongHoldingsanditssubordinatecompaniesServiceincomeNegotiation108,978,140.94124,308,389.86
LiaoningPortanditssubsidiariesServiceincomeNegotiation80,155,659.35165,608,963.82
ChinaOceanShippingAgency(Zhanjiang)Co.,LtdServiceincomeNegotiation75,114,485.5959,100,409.00
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.ServiceincomeNegotiation69,319,211.8761,896,678.04
ChinaMarineShippingAgencyGuangdongCo.,Ltd.ServiceincomeNegotiation36,263,254.2357,816,828.74
ChinaMerchantsInternationalShippingAgency(Shenzhen)Co.,Ltd.ServiceincomeNegotiation26,223,978.8429,854,035.10
YingkouPortGroupCo.,Ltd.anditssubsidiaries("YingkouPortGroup")ServiceincomeNegotiation25,600,739.5641,932,643.50
YiuLianDockyards(Shekou)LimitedServiceincomeNegotiation12,403,540.0515,088,720.57
SinotransContainerLinesCo.,Ltd.ServiceincomeNegotiation11,703,055.837,891,652.35
SinotransShenzhenQianhaiSupplyChainManagementLtd.ServiceincomeNegotiation10,684,159.255,354,930.31
NewLand-SeaCorridorOperation(Zhanjiang)Co.,Ltd.ServiceincomeNegotiation9,724,814.72-
CMPortChuangrong(Shenzhen)TechnologyCo.,Ltd.ServiceincomeNegotiation8,632,714.518,665,860.83
ShenzhenBaohongTechnologyCo.,Ltd.ServiceincomeNegotiation8,201,361.905,562,857.25
ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimitedServiceincomeNegotiation7,196,978.464,050,145.80
ChinaMerchantsPortInvestmentDevelopmentCompanyLimitedServiceincomeNegotiation6,905,698.131,907,632.07
ChinaOceanShippingAgencyShenzhenCo.Ltd.ServiceincomeNegotiation6,779,104.474,966,841.25
OtherrelatedpartiesServiceincomeNegotiation81,221,890.50141,359,228.82
TerminalLinkSASServiceincomeNegotiation138,262,807.50169,844,015.81
PortofNewcastleanditssubsidiariesServiceincomeNegotiation55,424,394.9217,721,583.77
ChinaMerchantsBankCo.,Ltd.ServiceincomeNegotiation51,248,973.95105,426,962.23
ChinaMerchantsGroupFinanceCompanyLimitedServiceincomeNegotiation33,052,458.7525,519,980.42
TianjinHaitianBondedLogisticsCo.,Ltd.ServiceincomeNegotiation1,210,342.381,558,375.91
ChinaMerchantsUnion(BVI)limitedDefaultincomeNegotiation34,137,339.48-
Total1,141,546,144.001,259,220,207.90

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(2)LeaseswithrelatedpartiesTheGroupasthelessor:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthelessee

NameofthelesseeTypeofleasedassetsPricingmethodanddecisionproceduresofrelatedtransactionsLeaseincomerecognizedinthecurrentyearLeaseincomerecognizedintheprioryear
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.BuildingsandstructuresNegotiation14,311,677.7210,222,395.86
QingdaoBondedLogisticsParkSinotransWarehousingLogisticsCo.,Ltd.PortandterminalfacilitiesNegotiation6,680,118.906,876,165.97
ChinaMerchantFood(China)Co.,Ltd.BuildingsandstructuresNegotiation5,964,675.965,683,461.66
ChinaTrafficImportandExportCo.,Ltd.BuildingsandstructuresNegotiation5,473,072.565,473,072.56
QingdaoSinotransMiningTechnologyCo.,Ltd.BuildingsandstructuresNegotiation4,750,557.124,750,557.12
QingdaoSinotransSupplyChainManagementCo.,Ltd.BuildingsandstructuresNegotiation3,438,231.483,558,552.62
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.BuildingsandstructuresNegotiation3,323,938.083,037,651.81
CMPortChuangrong(Shenzhen)TechnologyCo.,Ltd.EquipmentandstorageyardsNegotiation2,719,625.461,819,957.10
QingdaoWutongCenturySupplyChainCo.,Ltd.BuildingsandstructuresNegotiation2,705,626.502,119,296.03
ChinaMerchantsSecuritiesCo.,Ltd.BuildingsandstructuresNegotiation2,697,967.832,567,514.78
NanshanGroupanditssubsidiariesBuildingsandstructuresNegotiation2,283,922.575,065,342.55
YiuLianDockyards(Shekou)LimitedBuildingsandstructuresNegotiation2,268,270.472,195,466.64
QingdaoSinotransLogisticsCo.,Ltd.BuildingsandstructuresNegotiation2,064,723.80-
ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd.BuildingsandstructuresNegotiation-7,152,157.00
OtherrelatedpartiesBuildingsandstructures,landuserightsNegotiation5,928,324.105,600,826.68
Total64,610,732.5566,122,418.38

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(2)Leaseswithrelatedparties-continuedTheGroupasthelessee:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthelessor

NameofthelessorTypeofleasedassetsShort-termleaseexpensesorexpensesonleasesoflow-valueassetsthatareaccountedforusingsimplifiedapproachVariableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesRentalpaidInterestexpensesonleaseliabilitiesAdditiontoright-of-useassets
2023202220232022202320222023202220232022
ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd.Portandterminalfacilities,Machineryandequipment----110,343,653.60116,152,138.567,734,573.2913,517,478.02--
NanshanGroupBuildingsandstructures,Portandterminalfacilities,Landuseright,Others34,242.3228,161.16--69,881,796.9372,311,711.354,454,094.137,595,712.33-9,903,480.08
ChinaMerchantsTongshangFinanceLeaseCo.,Ltd.Machineryandequipment----46,381,918.5464,099,065.581,266,294.123,844,907.71--
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.Portandterminalfacilities----41,997,224.4238,839,274.644,035,780.924,986,303.85--
ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.Portandterminalfacilities,Landuseright----36,699,122.6236,699,122.621,209,619.983,046,636.4791,911,426.8378,187,153.30
EuroAsiaDockyardEnterpriseandDevelopmentLimitedPortandterminalfacilities----14,908,924.8214,696,367.93446,855.68440,484.8514,462,069.1414,255,883.08
ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd.Portandterminalfacilities,Landuseright7,937,320.807,892,513.32--8,175,440.388,175,440.38----
ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd.Buildingsandstructures----6,488,599.406,473,427.40471,603.69181,534.9910,920,656.12-
ShenzhenNanyou(Holdings)Ltd.Landuseright1,655,096.341,995,553.15--1,995,553.201,995,553.15----
ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimitedPortandterminalfacilities148,500.00859,290.00--1,893,762.892,782,367.7332,922.5583,666.10--
ShenzhenWanhaiBuildingManagementCo.,Ltd.Buildingsandstructures----1,881,947.001,202,209.0270,805.86106,595.461,708,272.10-

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(2)Leaseswithrelatedparties-continuedTheGroupasthelessee:-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthelessor

NameofthelessorTypeofleasedassetsShort-termleaseexpensesorexpensesonleasesoflow-valueassetsthatareaccountedforusingsimplifiedapproachVariableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesRentalpaidInterestexpensesonleaseliabilitiesAdditiontoright-of-useassets
2023202220232022202320222023202220232022
DalianBondedZoneYongdexinRealEstateDevelopment&ConstructionCo.,Ltd.Buildingsandstructures----413,854.72408,741.23---393,967.46
ChinaMerchantsApartmentDevelopment(Shenzhen)Co.,Ltd.Buildingsandstructures144,662.87142,674.30--142,674.30142,674.30----
DalianPortGroupCorporationLimitedBuildingsandstructures----80,000.0080,000.005,613.759,766.56--
DalianPortCommunicationsEngineeringCo.,Ltd.Buildingsandstructures----50,000.0050,000.008,196.7311,498.73--
ShenzhenChiwanHaikeIndustrialOperationCo.,Ltd.Buildingsandstructures-1,101,345.84---1,200,466.97---`
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.Portandterminalfacilities-----662,285.71-18,421.02-1,079,443.53
Total9,919,822.3312,019,537.77--341,334,472.82365,970,846.5719,736,360.7033,843,006.09119,002,424.19103,819,927.45

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(3)RelatedpartyguaranteesTheGroupastheguarantor

CHINAMERCHANTSPORTGROUPCO.,LTD.Securedparty

SecuredpartyCreditlineGuaranteedamountCommencementdateMaturityTheguaranteehasbeencompletedornot
2023
TerminalLinkSAS(Note1)76,655,687.3276,655,687.3211June20132033No
KhorAmbadoFZCo(Note2)203,981,760.00156,254,811.8624May20192032No
TerminalLinkSAS(Note1)114,527,259.00114,527,259.0025Jan20232030No
Total395,164,706.32347,437,758.18——————
2022
TerminalLinkSAS(Note1)66,490,102.6266,490,102.6211June20132033No
KhorAmbadoFZCo(Note2)200,580,480.00120,182,425.5924May20192032No
Total267,070,582.62186,672,528.21——————

Note1:CMACGMS.A.isanothershareholderofTerminalLinkSAS,anassociateofthe

Group.TheGrouphasmadeacommitmenttoCMACGMS.A.thattheGroupwillprovideguaranteeforitsbankloansandotherliabilitiestoTerminalLinkSAStotheextentoftheGroup's49%ownershipinterestinthecompany.TheactualguaranteedamountisRMB191,182,946.32asat31December2023.Ifanyguaranteeliabilityoccurs,theGroupwillcompensateCMACGMS.A.Note2:KhorAmbadoFZCoisarelatedpartyoftheGroup'sultimatecontrollingshareholder.

TheGroupprovidesguaranteeforitsbankloansandotherliabilities,theactualamountofwhichasat31December2023isRMB156,254,811.86.

(4)Borrowingsandloanswithrelatedparties

RelatedpartyAmountCommencementdateMaturitydateDescription
2023
Borrowings
ChinaMerchantsBankCo.,Ltd.1,150,941,725.01ActualborrowingdateAgreedrepaymentdateShort-termborrowings
ChinaMerchantsGroupFinanceCompanyLimited576,421,628.29ActualborrowingdateAgreedrepaymentdateLong-termborrowings
OceanDrillerIIILimited332,846,013.33ActualborrowingdateAgreedrepaymentdateOthercurrentliabilities
ChinaMerchantsGroupFinanceCompanyLimited207,179,377.43ActualborrowingdateAgreedrepaymentdateShort-termborrowings
ChinaMerchantsBankCo.,Ltd.68,062,333.33ActualborrowingdateAgreedrepaymentdateLong-termborrowings
Total2,335,451,077.39——————
2022
Borrowings
ChinaMerchantsGroupFinanceCompanyLimited604,990,472.82ActualborrowingdateAgreedrepaymentdateShort-termborrowings
ChinaMerchantsBankCo.,Ltd.140,139,852.77ActualborrowingdateAgreedrepaymentdateLong-termborrowings
ChinaMerchantsGroupFinanceCompanyLimited31,618,224.87ActualborrowingdateAgreedrepaymentdateLong-termborrowings
ChinaMerchantsBankCo.,Ltd.15,015,583.33ActualborrowingdateAgreedrepaymentdateShort-termborrowings
Total791,764,133.79——————

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(5)Assettransferfromrelatedparties

CHINAMERCHANTSPORTGROUPCO.,LTD.

Relatedparty

RelatedpartyContentoftransactionPricingmethodanddecisionproceduresofrelatedtransactions20232022
NingboZhoushanEquityinvestmentValuation1,845,000,000.00-
LiaoningPortEquityinvestmentValuation83,027,500.00-
DalianPortContainerEquityinvestmentValuation57,083,400.00-
JifaLogisticsEquityinvestmentValuation33,815,300.00-
YingkouPortGroupEquityinvestmentValuation19,002,800.00-
HoiTung(Shanghai)CompanyLimitedFixedassetsNegotiation-8,831,858.42
HoiTung(Shanghai)CompanyLimitedConstructioninprogressNegotiation-4,853,097.34
Total————2,037,929,000.0013,684,955.76

(6)Compensationforkeymanagementpersonnel

Item20232022
Compensationforkeymanagementpersonnel18,932,731.0320,313,774.52

6.Amountsduefrom/torelatedpartiesthathavenotsettled

(1)Amountsduefromrelatedparties

ItemRelatedparty31/12/202331/12/2022
CashandbankbalancesChinaMerchantsBankCo.,Ltd.3,778,553,414.063,387,973,124.59
ChinaMerchantsGroupFinanceCompanyLimited2,090,078,155.931,841,698,554.32
Total5,868,631,569.995,229,671,678.91
Held-for-tradingfinancialassetsChinaMerchantsBankCo.,Ltd.-900,061,111.11
AccountsreceivableAntongHoldingsanditssubordinatecompanies8,919,131.238,395,245.04
ChinaMarineShippingAgencyGuangdongCo.,Ltd.2,765,338.3817,505,768.03
SinotransContainerLinesCo.,Ltd.2,763,240.001,287,851.75
GreatHornDevelopmentCompanyFZCo2,162,941.762,157,859.50
ChinaOceanShippingAgencyShenzhenCo.Ltd.2,035,495.50758,113.05
ChinaMerchantsInternationalShippingAgency(Shenzhen)Co.,Ltd.1,750,277.361,530,505.68
DalianContainerTerminalCo.,Ltd.1,725,150.001,957,840.00
COSCOLogistics(Zhanjiang)Co.,Ltd.1,505,114.974,045,734.88
NanshanGroupanditssubsidiaries1,214,194.851,404,627.23
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.1,207,750.723,749,064.99
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.1,188,600.011,729,380.01
YiuLianDockyards(Shekou)Limited1,077,910.403,554,521.60
SinowayShippingLtd.755,606.024,564,389.71
Sinotrans(HK)ShippingLimited682,942.44375,748.78
LiaoningPort-3,680,900.00
KhorAmbadoFZCo-3,108,610.49
DalianJifaPortLogisticsCo.,Ltd.-2,220,941.63
DalianJifaSouthCoastInternationalLogisticsCo.,Ltd.-1,839,478.79
LiaoningPortGroupCo.,Ltd.-1,821,581.00
PortdeDjiboutiS.A.-1,770,749.55
SouthChinaSinotransSupplyChainManagementCo.,Ltd.-659,854.40
ChinaMarineShippingAgencyNingboCo.,Ltd.-164,981.21
YingkouPortGroupCo.,Ltd.anditssubsidiaries("YingkouPortGroup")-160,491.00
Otherrelatedparties5,733,746.6913,549,055.64
Total35,487,440.33102,283,282.02

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

6.Amountsduefrom/torelatedparties-continued

(1)Amountsduefromrelatedparties-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemRelatedparty31/12/202331/12/2022
DividendsreceivableNanshanGroup203,577,000.00240,591,000.00
MerchantsPortCity38,809,044.7741,847,044.77
DalianPortLogisticsNetworkCo.,Ltd.30,605,256.76-
YingkouGangxinTechnologyCo.,Ltd.23,881,213.75-
Tin-CanIslandContainerTerminalLtd21,960,680.2265,121,449.40
COSCOLogistics(Zhanjiang)Co.,Ltd.13,449,001.1618,449,001.16
ChinaOceanShippingAgencyShenzhenCo.Ltd.11,232,000.00-
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.-50,000,000.00
Otherrelatedparties-232,047.23
Total343,514,196.66416,240,542.56
OtherreceivablesChuKongRiverTradeTerminalCo.,Ltd.36,575,039.2036,053,588.00
ShenzhenNanyou(Holdings)Ltd.30,639,652.926,725,260.86
PortdeDjiboutiS.A.24,966,517.5024,808,664.70
ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.Ltd.6,310,000.006,310,000.00
ChinaMerchantsPortInvestmentDevelopmentCompanyLimited2,830,188.69-
EuroAsiaDockyardEnterpriseandDevelopmentLimited1,531,896.041,510,055.76
Tin-CanIslandContainerTerminalLtd1,320,562.03-
NanshanGroupanditssubsidiaries1,189,566.101,009,839.70
ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd.1,166,408.401,132,846.40
ZhoushanBlueOceanInvestmentCo.,Ltd.-4,996,989.39
ChinaMerchantsShenzhenRo-RoShippingCo.,Ltd.-2,899,163.95
Otherrelatedparties2,142,975.513,550,453.73
Total108,672,806.3988,996,862.49
PrepaymentsNanshanGroupanditssubsidiaries-9,000.00
Otherrelatedparties250,084.226,351.75
Total250,084.2215,351.75
Non-currentassetsduewithinoneyearTerminalLinkSAS7,468,849.8346,409,214.10
ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd.6,200,000.00-
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.3,800,000.003,800,000.00
PortofNewcastleanditssubsidiaries-852,919,208.25
Total17,468,849.83903,128,422.35
Long-termreceivablesPortofNewcastleanditssubsidiaries921,402,438.00-
TerminalLinkSAS204,299,511.522,931,108,250.96
TianjinHaitianBondedLogisticsCo.,Ltd.34,300,000.0034,300,000.00
ZhoushanBlueOceanInvestmentCo.,Ltd.4,996,989.39-
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.695,876.01659,515.88
ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd.-6,200,000.00
Total1,165,694,814.922,972,267,766.84

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

6.Amountsduefrom/torelatedparties-continued

(2)Amountsduetorelatedparties

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemRelatedparty31/12/202331/12/2022
Short-termborrowingsChinaMerchantsBankCo.,Ltd.1,150,880,891.6715,015,583.33
ChinaMerchantsGroupFinanceCompanyLimited200,176,534.70413,453,629.50
Total1,351,057,426.37428,469,212.83
OthercurrentliabilitiesChinaMerchantsGroupFinanceCompanyLimited-10,056,575.34
AccountspayableKhorAmbadoFZCo22,639,585.37-
AntongHoldingsanditssubordinatecompanies20,360,897.3016,948,161.45
DalianPortLogisticsTechnologyCo.,Ltd.17,607,121.00-
NingboZhoushananditssubsidiaries14,691,952.2916,725,206.29
DalianPortLogisticsNetworkCo.,Ltd.8,355,644.80-
NanshanGroupanditssubsidiaries5,968,662.374,259,215.79
ShenzhenBayElectricityIndustryCo.,Ltd.5,394,353.744,920,501.06
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.4,066,438.848,007,474.16
ChinaMerchantsPortandShippingDigitalTechnology(Liaoning)Co.,Ltd.2,905,000.00-
DalianGanglongTechnologyCo.,Ltd.2,739,450.00-
EuroAsiaDockyardEnterpriseandDevelopmentLimited2,413,589.562,363,408.70
ShenzhenMerchantstoHomeTechnologyCo.,Ltd.1,781,775.33-
ChinaMerchantsPortInvestmentDevelopmentCompanyLimited1,649,069.281,203,536.99
YiuLianDockyardsLimited1,135,115.31792,077.94
SinowayShippingLtd.-4,886,700.00
ChinaMarineShippingAgencyShenzhenCo.,Ltd.259,966.50248,149.17
Otherrelatedparties2,761,309.784,212,603.81
Total100,037,979.1864,567,035.36
ReceiptsinadvanceChinaMerchantsPortInvestmentDevelopmentCompanyLimited5,358,074.44-
QingdaoWutongCenturySupplyChainCo.,Ltd.196,301.30196,301.30
Otherrelatedparties-160,600.00
Total5,554,375.74356,901.30
ContractliabilitiesCOSCOLogistics(Zhanjiang)Co.,Ltd.4,552,313.241,275,397.28
QingdaoSinotransSupplyChainManagementCo.,Ltd.1,464,429.12368,484.60
ChinaMerchantsPortInvestmentDevelopmentCompanyLimited660,943.40-
ChinaOceanShippingAgencyShenzhenCo.Ltd.633,024.00-
ShenzhenBaohongTechnologyCo.,Ltd.459,049.11-
QingdaoSinotransLogisticsCo.,Ltd.440,727.56-
DalianContainerTerminalCo.,Ltd.-9,679,785.44
DandongPortGroupCo.,Ltd.-3,842,709.07
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.-1,556,753.55
YingkouXingangKuangshiTerminalsCo.,Ltd.-1,514,844.30
AntongHoldingsanditssubordinatecompanies-1,468,616.91
Otherrelatedparties1,021,090.852,508,480.44
Total9,231,577.2822,215,071.59
DividendspayableChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.77,734,806.4620,000,000.00
DalianPortContainer16,160,696.6114,000,000.00
JifaLogistics9,575,104.423,000,000.00
YingkouPortGroup5,372,456.78-
YiuLianDockyardsLimited2,334,150.00-
ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd.-41,400,234.06
SriLankaPortsAuthority-10,446,900.00
Total111,177,214.2788,847,134.06
OtherpayablesLacAssalInvestmentHoldingCompanyLimited64,310,900.9547,359,371.46
TerminalLinkSAS10,423,425.44-
ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd.10,079,369.0010,079,369.00
ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd.5,000,000.033,750,000.03
AntongHoldingsanditssubordinatecompanies4,743,266.3712,730,734.37
SinotransShenzhenQianhaiSupplyChainManagementLtd.1,690,130.781,628,515.12

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

6.Amountsduefrom/torelatedparties-continued

(2)Amountsduetorelatedparties-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemRelatedparty31/12/202331/12/2022
OtherpayablesChinaMerchantFood(China)Co.,Ltd.1,069,017.001,069,017.00
ChinaTrafficImportandExportCo.,Ltd.1,055,975.76-
HoiTung(Shanghai)CompanyLimited966,785.34-
ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited757,976.00-
ShenzhenBaohongTechnologyCo.,Ltd.749,269.39749,269.39
ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.-6,420,820.68
ChinaMerchantsPortInvestmentDevelopmentCompanyLimited-4,130,081.82
ChinaMerchantsRealEstateCo.,Ltd.-3,263,853.86
ZhanjiangXiagangUnitedDevelopmentCo.,Ltd.-1,439,753.57
Otherrelatedparties6,946,931.016,732,058.14
Total107,793,047.0799,352,844.44
Non-currentliabilitiesduewithinoneyearChinaMerchantsGroupFinanceCompanyLimited288,071,994.22110,838,087.45
ChinaMerchantsBankCo.,Ltd.199,326,195.8411,362,639.43
ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd.76,461,173.65103,236,707.51
NanshanGroupanditssubsidiaries63,331,699.8565,165,836.97
ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.35,719,107.9537,012,422.69
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.7,548,329.7232,339,542.44
ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd.6,396,788.04-
ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited375,528.561,050,270.17
ChinaMerchantsTongshangFinanceLeaseCo.,Ltd.-45,115,824.42
EuroAsiaDockyardEnterpriseandDevelopmentLimited-14,255,883.08
GuangdongShunkongCityInvestmentRealEstateCo.Ltd.-3,162,000.00
Otherrelatedparties-1,962,815.09
Total677,230,817.83425,502,029.25
Long-termborrowingsChinaMerchantsGroupFinanceCompanyLimited721,624,592.13445,490,692.58
ChinaMerchantsBankCo.,Ltd.158,000,000.00325,000,000.00
Total879,624,592.13770,490,692.58
LeaseliabilitiesChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.62,185,360.585,993,041.70
ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd.-75,833,546.45
NanshanGroupanditssubsidiaries-65,431,073.09
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.-15,833,403.29
ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited-253,362.41
Otherrelatedparties1,070,904.61803,148.25
Total63,256,265.19164,147,575.19
Long-termpayablesChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.33,905,690.3241,052,268.30

(XVI)SHARE-BASEDPAYMENTS

1.Equityinstruments

TypeoftargetsgrantedGrantedinthecurrentyearExercisedinthecurrentyearUnlockedinthecurrentyearLapsedinthecurrentyear
Qty.AmountQty.AmountQty.AmountQty.Amount
Management------354,7201,129,997.09

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(XVI)SHARE-BASEDPAYMENTS-continued

1.Equityinstruments-continuedOutstandingstockoptionorotherequityinstrumentsattheendofcurrentyear

CHINAMERCHANTSPORTGROUPCO.,LTD.

Typeoftargetsgranted

TypeoftargetsgrantedOutstandingstockoptionattheendofcurrentyear
RangeofexercisepricesRemainingtermofcontract
ManagementRMB14.28toRMB16.5337months

2.Equity-settledshare-basedpayments

ThemethodusedtodeterminethefairvalueofequityinstrumentsatthegrantdateThecostofgrantedstockoptionswasestimatedusingtheBlackScholesModel.
ThebasisfordeterminingthenumberofexercisableequityinstrumentsAteachbalancesheetdateinthevestingperiod,thebestestimatewasmadeandtheestimatednumberofexercisableequityinstrumentswasmodifiedaccordingtothelatestchangesinthenumberofemployeeswhocanexercisetherightsandothersubsequentinformation.
ReasonsforthesignificantdifferencebetweentheestimatesofthecurrentyearandtheestimatesofprioryearCriteriaofexercisinginvestingperiodofbatch1andbatch2arenotsatisfied
Theaggregateamountofequity-settledshare-basedpaymentsthatisincludedincapitalreserve6,644,590.36

PursuanttotheOfficialReplyontheImplementationoftheStockOptionIncentivePlanofChinaMerchantsPortGroupCo.,Ltd.byState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil(No.748[2019],SASAC),whichwasdeliberatedandapprovedbythe1

st

ExtraordinaryGeneralMeetingoftheCompanyin2020on3February2020,theCompanyimplementedastockoptionplanwitheffectfrom3February2020togrant238incentiverecipients17,198,000stockoptionswithanexercisepriceofRMB17.80pershare.Withalockupperiodof24monthsfromthegrantdate,thestockoptionsareexercisableuponexpiryofthe24-monthlockupperiodinthepremisethatthevestingconditionsaresatisfied.Thestockoptionsareexercisableinthreebatches,specifically,40%forthefirstbatch(after24monthsbutwithin36monthssubsequenttothegrantdate),30%forthesecondbatch(after36monthsbutwithin48monthssubsequenttothegrantdate)andtheremaining30%forthethirdbatch(after48monthsbutwithin84monthssubsequenttothegrantdate).EachstockoptionentitlestheholdertosubscribeforoneordinaryshareoftheCompany.On5March2021,thegrantingofstockoption(reservedportion)understockoptioninventiveplan(phaseI)wascompleted.Thereservedportionofstockoptiontargetstototal3persons,granting530,000sharesofstockoptionwithexercisepriceofRMB15.09pershare.Thegrantdateis29January2021.Withalockupperiodof24monthsfromthegrantdate,thestockoptionsareexercisableuponexpiryofthe24-monthlockupperiodinthepremisethatthevestingconditionsaresatisfied.Thestockoptionsareexercisableintwobatches,specifically,50%forthefirstbatch(after24monthsbutwithin36monthssubsequenttothegrantdate),andtheremaining50%forthesecondbatch(after36monthsbutwithin72monthssubsequenttothegrantdate).EachstockoptionentitlestheholdertosubscribeforoneordinaryshareoftheCompany.

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(XVI)SHARE-BASEDPAYMENTS-continued

2.Equity-settledshare-basedpayments-continuedAccordingtoArticle32ofStockOptionIncentivePlan,sincethegrantdateofthestockoption,iftheCompanydistributesdividendspriortotheexerciseoftheoption,theexercisepriceshallbeadjustedaccordingly.Therefore,theCompanyuniformlyadjustedtheexercisepricefromRMB17.80pershareto17.34pershareinrespectofthefirstbatchofstockoptiongrantedunderthestockoptionincentiveplan(phaseI)on30January2021;theCompanyuniformlyadjustedtheexercisepricefromRMB17.34pershareto16.96pershareinrespectofthefirstbatchofstockoptiongrantedunderthestockoptionincentiveplan(phaseI),andtheexercisepriceofthereservedportionofstockoptionfromRMB15.09pershareto14.71pershareon29January2022;theCompanyuniformlyadjustedtheexercisepricefromRMB16.96pershareto16.53pershareinrespectofthefirstbatchofstockoptiongrantedunderthestockoptionincentiveplan(phaseI),andtheexercisepriceofthereservedportionofstockoptionfromRMB14.71pershareto14.28pershareon20January2023.Asatthedateonwhichthefinancialstatementsareissued,as12oftheincentivetargetsforthefirstbatchofstockoptiongrantedunderthestockoptionincentiveplan(phaseI)haveretiredornolongerservetheCompany,theboardofdirectorsoftheCompanydecidedtocancelintotalof339,600sharesofstockoptiongrantedbutnotyetexercisedbysuchpersons;as5oftheincentivetargetsforthethirdvestingperiodofthestockoption(1

st

batch)underthestockoptionincentiveplan(phaseI)oftheCompanyhavenotsatisfiedthecriteriaofexerciseintheirperformanceassessment,theCompanyhascancelledthe20%ofthestockoption(totalling15,120shares)forthethirdvestingperiodofthestockoption(1

stbatch)underthestockoptionincentiveplan(phaseI)heldbythe5incentivetargets.Asatthedateonwhichthefinancialstatementsareissued,195incentivetargetswhocanexercisetherightsforthethirdvestingperiodofthestockoption(1

stbatch)underthestockoptionincentiveplan(phaseI)included:(1)190incentivetargetswhometthedesignatedgradesintheperformanceassessment,holding100%ofthestockoption(totalling3,471,600shares)forthethirdvestingperiodofthestockoption(1

stbatch)underthestockoptionincentiveplan(phaseI)oftheCompanyandsatisfyingthecriteriaofexercise;and(2)5incentivetargetswhometthedesignatedgradesintheperformanceassessment,holding80%ofthestockoption(totalling60,480shares)forthethirdvestingperiodofthestockoption(1

st

batch)underthestockoptionincentiveplan(phaseI)oftheCompanyandsatisfyingthecriteriaofexercise.Thesecondvestingperiodofthestockoption(reservedportion)underthestockoptionincentiveplan(phaseI)targetstototal3personswhocanexercisetherights.The3incentivetargetshavemetthedesignatedgradesintheperformanceassessment,and100%ofstockoptionforthesecondvestingperiodofthestockoption(reservedportion)underthestockoptionincentiveplan(phaseI)oftheCompanyheldbythemhavesatisfiedthecriteriaofexercise,granting265,000sharesofexercisablestockoptionforthesecondvestingperiodofthestockoption(reservedportion)underthestockoptionincentiveplan(phaseI).

3.Share-basedpaymentexpensesinthecurrentyear

CHINAMERCHANTSPORTGROUPCO.,LTD.Typeoftargetsgranted

TypeoftargetsgrantedEquity-settledshare-basedpaymentexpenses
Management4,016,693.76

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(XVII)COMMITMENTSANDCONTINGENCIES

1.Significantcommitments

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/2022
Commitmentsthathavebeenenteredintobuthavenotbeenrecognizedinthefinancialstatements
-Commitmenttomakecontributionstotheinvestees467,604,906.7638,956,185.01
-Commitmenttoacquireandconstructlong-termassets2,407,538,867.351,802,316,899.52
-Commitmenttoinvestportconstruction-5,571,690.76
-Others-383,560.31
Total2,875,143,774.111,847,228,335.60

2.Contingencies

Item31/12/202331/12/2022
Contingentliabilitiesbroughtbyexternallitigations(Note1)946,218,359.48279,438,527.06
Guaranteeforborrowingsofrelatedparties(Note2)347,437,758.18186,672,528.21
Total1,293,656,117.66466,111,055.27

Note1:Thismainlyrepresentsthesignificantcontingentliabilitiesarisingfromthelitigations

betweenTCPanditssubsidiariesandlocaltaxauthority,employeeorformeremployeeofTCPanditssubsidiariesinBrazilatastheyearend.AccordingtothelatestestimatesoftheGroup'smanagement,thepossiblecompensationisRMB946,218,359.48butitisnotlikelytocauseoutflowofeconomicbenefitsfromtheGroup.Therefore,thecontingentliabilitiesarisingfromtheabovependinglitigationsarenotrecognizedasprovisions.Thecounter-bonificationwheretheGroupasthebeneficiarywillbeexecutedbytheformerTCPshareholderthatdisposedtheshares.Accordingtothecounter-bonificationagreement,theformerTCPshareholderneedstomakecounter-bonificationtotheGroupinrespectoftheabovecontingentliabilities,withthecompensationamountnotexceedingpre-determinedamountandspecifiedperiod.ZhanjiangPort,asubsidiaryoftheCompany,enteredintoanEPCcontractfortheGeneralCargoTerminalProjectatDonghaiIslandPortAreaofZhanjiangPortwithCCCCWaterTransportPlanningandDesignInstituteCo.,Ltd.on28June2016,withtheagreedconstructionperiodfrom28June2016to8June2018.Afterthecontractwassigned,theoverallprogressoftheprojectconstructionwasdelayedduetotheoptimizationandadjustmentofthelayoutplanandprocessdesignfortheterminal.InDecember2022,CCCCWaterTransportPlanningandDesignInstituteCo.,Ltd.filedalitigationtothecourtforlossescausedbydelayinconstruction,adjustmenttoprojectscale,changesindesign,andotherreasons,andmayrequiretheZhanjiangPortforcompensation.TheclaimsofCCCCWaterTransportPlanningandDesignInstituteCo.,Ltd.wereinconsistentwiththoseagreedinthecontract,therelevantresultofthelitigationcouldnotbereasonablyestimated,andthemanagementoftheCompanybelievedthatthepossibilityoflosswasquitelow,therefore,noprovisionsweremadefortheabovependinglitigation.

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(XVII)COMMITMENTSANDCONTINGENCIES-continued

2.Contingencies-continuedNote2:Asat31December2023,theguaranteesprovidedbytheGroupforrelatedpartiesare

detailedinNoteXV5(3).Asat31December2023,thedirectorsoftheCompanyevaluatedthedefaultrisksofrelatedcompaniesontheabove-mentionedloanfinancingandotherliabilities,andbelievedthattheriskswerenotsignificantandthepossibilityofguaranteedpaymentswasverysmall.Exceptfortheabove-mentionedcontingencies,asat31December2023,theGrouphadnoothermajorguaranteesandothercontingenciesthatneedtobeexplained.(XVIII)EVENTSAFTERTHEBALANCESHEET

Accordingtotheprofitdistributionplanfor2023andasapprovedbythe7thmeetingofthe10thboardofdirectorson29March2024,theCompany,basedonthetotalsharesof2,499,074,661asat31December2023,distributescashdividendsatRMB5.80(inclusiveoftax)forevery10shares,totallingRMB1,449,463,303.38.Theaboveprofitdistributionplanhasnotyetbeenapprovedbyshareholders'meeting.(XIX)OTHERSIGNIFICANTEVENTS

1.Segmentreporting

(1)BasisfordeterminingreportingsegmentsandaccountingpoliciesThekeymanagementteamoftheCompanyisregardedastheCODM,whoreviewstheGroup'sinternalreportsinordertoassessperformance,allocateresourcesanddeterminetheoperatingsegments.TheCODMconsiderstheoperationoftheGroupintermsofbusinessandlocations.IndividualoperatingsegmentsforwhichdiscretefinancialinformationisavailableareidentifiedbytheCODMandareoperatedbytheirrespectivemanagementteams.TheseindividualoperatingsegmentsareaggregatedinarrivingatthereportingsegmentsoftheGroup.Frombusinessandlocationperspectives,themanagementassessestheperformanceoftheGroup'sbusinessoperationsincludingportsoperation,bondedlogisticsoperationandotheroperations.PortsoperationPortsoperationincludescontainerterminaloperation,bulkandgeneralcargoterminaloperationoperatedbytheGroupanditsassociatesandjointventures.

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(1)Basisfordeterminingreportingsegmentsandaccountingpolicies-continuedPortsoperation-continuedTheGroup'sportsoperationispresentedasfollows:

(a)MainlandChina,HongKongandTaiwan

?PearlRiverDelta?YangtzeRiverDelta?BohaiRim?Others(b)OtherlocationsoutsideofMainlandChina,HongKongandTaiwanBondedlogisticsoperationBondedlogisticsoperationincludeslogisticsparkoperation,portstransportationandairportcargohandlingoperatedbytheGroupanditsassociatesandjointventures.OtheroperationsOtheroperationsmainlyincludepropertydevelopmentandinvestmentandlogisticsbusinessoperatedbytheGroup'sassociates,propertyinvestmentoperatedbytheGroupandcorporatefunction.Eachofthesegmentsunderportsoperationincludestheoperationsofanumberofportsinvariouslocationswithinonegeographiclocation.Forthepurposeofsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedintoreportablesegmentsongeographicbasisinordertopresentamoresystematicandstructuredsegmentinformation.Togivedetailsofeachoftheoperatingsegments,intheopinionofthedirectorsoftheCompany,wouldresultinparticularsofexcessivelength.Bondedlogisticsoperationandotheroperationsincludeanumberofdifferentoperations,eachofwhichisconsideredasaseparatebutinsignificantoperatingsegmentbytheCODM.Forsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedaccordingtothenatureoftheiroperationstogiverisetomoremeaningfulpresentation.Therearenomaterialsalesorothertransactionsbetweenthesegments.TherevenuefromamajorcustomerofportsoperationamountstoRMB2,007,111,746.88,representing12.74%(2022:10.30%)oftheGroup'soperatingincomefor2023.

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(2)FinancialinformationofreportingsegmentsSegmentfinancialinformationfor2023isasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemPortsoperationBondedlogisticsoperationOthersUnappropriatedamountTotal
MainlandChina,HongKongandTaiwanOtherlocationsSub-total
PearlRiverDeltaYangtzeRiverDeltaBohaiRimOthers
Operatingincome6,075,691,801.01557,788,311.9376,760,801.963,574,402,653.204,751,630,018.5615,036,273,586.66532,670,444.04181,531,749.52-15,750,475,780.22
Operatingcost3,640,281,453.34361,926,675.7563,825,074.562,648,882,080.972,081,165,945.518,796,081,230.13289,816,313.93232,289,163.69-9,318,186,707.75
Segmentoperatingprofit(Lossesaremarkedwith"-")2,435,410,347.67195,861,636.1812,935,727.40925,520,572.232,670,464,073.056,240,192,356.53242,854,130.11-50,757,414.17-6,432,289,072.47

Taxesandsurcharges

Taxesandsurcharges36,973,822.232,937,337.051,126,391.1345,970,219.08174,670,480.72261,678,250.2126,757,765.4224,332,840.83229,169.73312,998,026.19
Administrativeexpense437,814,344.0126,162,000.709,644,685.03529,927,581.34289,653,304.361,293,201,915.4449,569,679.551,111,358.13432,758,202.261,776,641,155.38
R&Dexpenses176,892,569.7323,890,344.38-22,956,157.96-223,739,072.07---223,739,072.07
Financialexpenses57,700,690.4420,953,099.981,883,921.8985,621,075.6655,969,633.29222,128,421.263,129,354.5720,854,412.741,593,001,139.571,839,113,328.14
Otherincome148,491,604.9610,227,298.67203,918.2650,512,014.48-209,434,836.3714,668,272.54286,151.86-224,389,260.77
Investmentincome130,131,600.034,956,167,513.13416,731,511.2450,706,320.64454,900,989.676,008,637,934.7159,521,957.15245,264,989.0535,252,059.896,348,676,940.80
Gainsfromchanges(Lossesaremarkedwith"-")infairvalue102,777,832.55-58,125,015.2480,543,109.95-6,584,009.33-118,611,917.93-57,875,873.699,644,865.102,971,891.1873,352,800.52
Gainsfromimpairmentofcredit(Lossesaremarkedwith"-")7,327,814.78-36,129.03-3,468,262.80-7,171,766.683,588,181.8733,695,859.31--37,284,041.18
Gainsfromimpairmentofassets(Lossesaremarkedwith"-")-1,091,994.67-189,030,229.12---1,175,087.49-191,297,311.28----191,297,311.28
Gainsfromdisposalofassets(Lossesaremarkedwith"-")6,196,256.45--7,362.2234,965,994.86507,804.3141,662,693.40-602,074.20-4,253,879.72-47,206.8736,759,532.61
Operatingprofit(Lossesaremarkedwith"-")2,119,862,035.364,841,122,292.48497,751,906.58374,114,121.642,597,232,594.4910,430,082,950.55212,805,471.68153,886,100.42-1,987,811,767.368,808,962,755.29

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(2)Financialinformationofreportingsegments-continuedSegmentfinancialinformationfor2023isasfollows:-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemPortsoperationBondedlogisticsoperationOthersUnappropriatedamountTotal
MainlandChina,HongKongandTaiwanOtherlocationsSub-total
PearlRiverDeltaYangtzeRiverDeltaBohaiRimOthers
Non-operatingincome30,640,040.33206,852.93541,008.018,475,666.3041,553,418.1381,416,985.70151,072.00397,901.935,336,064.4987,302,024.12
Non-operatingexpenses7,067,285.26269,926.2889,933.4520,553,447.0859,763,043.5987,743,635.66323,424.06-9,005,781.0097,072,840.72
Totalprofit(Lossesaremarkedwith"-")2,143,434,790.434,841,059,219.13498,202,981.14362,036,340.862,579,022,969.0310,423,756,300.59212,633,119.62154,284,002.35-1,991,481,483.878,799,191,938.69
Incometaxexpenses496,377,795.59258,020,898.9444,218,770.1858,080,621.40383,193,406.851,239,891,492.9635,421,490.7027,848,029.46418,839.811,303,579,852.93
Netprofit(Lossesaremarkedwith"-")1,647,056,994.844,583,038,320.19453,984,210.96303,955,719.462,195,829,562.189,183,864,807.63177,211,628.92126,435,972.89-1,991,900,323.687,495,612,085.76
Segmentassets23,724,145,365.0957,709,896,939.079,703,687,046.0227,727,348,979.5242,500,927,378.99161,366,005,708.694,712,961,257.3119,403,999,499.2713,074,330,201.99198,557,296,667.26
Totalassetsinthefinancialstatements198,557,296,667.26
Segmentliabilities7,029,170,965.331,275,695,327.99158,452,621.026,498,242,286.207,189,272,994.1822,150,834,194.72540,614,061.66617,809,748.8949,678,104,233.1872,987,362,238.45
Totalliabilitiesinthefinancialstatements72,987,362,238.45
Supplementaryinformation:
Depreciationandamortization1,126,510,216.09113,947,562.11882,064.68875,850,774.90866,605,229.042,983,795,846.82102,034,394.34194,738,423.5323,167,239.733,303,735,904.42
Interestincome42,679,230.742,243,451.14714,733.0722,543,238.68256,085,052.61324,265,706.247,210,199.571,678,151.13164,439,864.42497,593,921.36
Interestexpense90,781,497.8910,849,293.26-107,297,773.92314,310,921.43523,239,486.508,495,591.2719,075,433.271,687,342,285.622,238,152,796.66
Investmentincomefromlong-termequityinvestmentsunderequitymethod44,963,451.524,750,830,911.12375,529,615.8247,995,671.63454,900,989.675,674,220,639.7659,521,957.15245,264,989.05-5,979,007,585.96
Long-termequityinvestmentsunderequitymethod1,764,751,439.0355,844,039,253.088,777,428,828.421,715,660,813.0812,507,306,667.4880,609,187,001.091,756,185,613.1714,300,745,162.01-96,666,117,776.27
Non-currentassetsotherthanlong-termequityinvestments18,193,324,391.19398,488,128.1614,938,012.9320,908,386,344.6026,031,938,950.6365,547,075,827.512,381,793,244.494,753,153,217.29419,380,677.7873,101,402,967.07

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(2)Financialinformationofreportingsegments-continuedSegmentfinancialinformationfor2022isasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemPortsoperationBondedlogisticsoperationOthersUnappropriatedamount(Restated)Total(Restated)
MainlandChina,HongKongandTaiwanOtherlocationsSub-total
PearlRiverDeltaYangtzeRiverDeltaBohaiRimOthers
Operatingincome6,774,045,422.661,139,944,516.6274,222,857.103,552,074,625.604,086,514,642.8615,626,802,064.84445,592,537.09158,094,525.62-16,230,489,127.55
Operatingcost3,849,914,782.32696,788,162.4562,264,300.652,691,172,225.321,853,376,921.169,153,516,391.90280,270,213.56216,675,107.48-9,650,461,712.94
Segmentoperatingprofit(Lossesaremarkedwith"-")2,924,130,640.34443,156,354.1711,958,556.45860,902,400.282,233,137,721.706,473,285,672.94165,322,323.53-58,580,581.86-6,580,027,414.61

Taxesandsurcharges

Taxesandsurcharges32,239,840.065,674,557.521,102,665.9549,561,307.23152,923,436.63241,501,807.3922,188,514.9118,305,796.73253,354.43282,249,473.46
Administrativeexpense435,544,849.3337,586,936.779,903,393.91536,045,336.65266,594,657.881,285,675,174.5446,846,479.951,356,901.51431,216,180.511,765,094,736.51
R&Dexpenses227,962,954.8140,790,798.38-18,952,425.51-287,706,178.70---287,706,178.70
Financialexpenses43,042,474.0512,623,313.3516,617,530.89105,755,359.90202,779,070.53380,817,748.7211,831,333.1742,509,881.221,823,554,709.312,258,713,672.42
Otherincome128,422,018.546,905,602.7799,278.3673,123,957.51-208,550,857.1820,996,809.222,259,661.589,840,742.44241,648,070.42
Investmentincome222,543,823.375,152,876,665.17334,188,303.0253,824,558.051,070,198,985.496,833,632,335.1094,330,245.64425,089,497.2024,603,428.397,377,655,506.33
Gainsfromchangesinfairvalue(Lossesaremarkedwith"-")34,481,879.58--28,084,576.601,009,908.14-7,407,211.12-136,440,861.23---129,033,650.11
Gainsfromimpairmentofcredit(Lossesaremarkedwith"-")-5,932,959.08-269,053.3819,276,798.42-221,119,087.29-207,506,194.57-15,967,381.98---223,473,576.55
Gainsfromimpairmentofassets(Lossesaremarkedwith"-")-573,122.05---21,585,898.15--22,159,020.20----22,159,020.20
Gainsfromdisposalofassets(Lossesaremarkedwith"-")-186,834.36---2,189,571.6161,495.66-2,314,910.31104,763.8457,352,755.05-12,513.0655,130,095.52
Operatingprofit(Lossesaremarkedwith"-")2,564,095,328.095,506,263,016.09290,807,023.86274,047,723.352,459,981,950.5211,095,195,041.9147,479,570.99363,948,752.51-2,220,592,586.489,286,030,778.93

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(2)Financialinformationofreportingsegments-continuedSegmentfinancialinformationfor2022isasfollows:-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemPortsoperationBondedlogisticsoperationOthersUnappropriatedamount(Restated)Total(Restated)
MainlandChina,HongKongandTaiwanOtherlocationsSub-total
PearlRiverDeltaYangtzeRiverDeltaBohaiRimOthers
Non-operatingincome18,342,596.092,900,356.1722,378,312.3110,237,915.83221,044,827.94274,904,008.3450,933.02992,336.453,327,174.96279,274,452.77
Non-operatingexpenses23,387,870.391,035,713.16-148,923,783.2929,888,387.79203,235,754.6310,000.00-17,196,500.05220,442,254.68
Totalprofit(Lossesaremarkedwith"-")2,559,050,053.795,508,127,659.10313,185,336.17135,361,855.892,651,138,390.6711,166,863,295.6247,520,504.01364,941,088.96-2,234,461,911.579,344,862,977.02
Incometaxexpenses517,928,967.15218,235,972.4519,104,784.4939,483,784.58224,820,817.171,019,574,325.8417,884,281.4973,694,575.331,806,494.091,112,959,676.75
Netprofit(Lossesaremarkedwith"-")2,041,121,086.645,289,891,686.65294,080,551.6895,878,071.312,426,317,573.5010,147,288,969.7829,636,222.52291,246,513.63-2,236,268,405.668,231,903,300.27
Segmentassets24,260,000,005.9658,080,072,708.019,491,073,768.1327,095,782,491.1944,382,357,967.93163,309,286,941.224,719,222,985.0619,523,260,761.9510,035,331,759.08197,587,102,447.31
Totalassetsinthefinancialstatements197,587,102,447.31
Segmentliabilities10,545,067,732.351,993,414,192.41142,428,100.057,095,951,456.647,184,350,827.7926,961,212,309.24472,931,692.54849,543,150.0740,981,807,066.1569,265,494,218.00
Totalliabilitiesinthefinancialstatements69,265,494,218.00
Supplementaryinformation:
Depreciationandamortization1,119,781,238.27214,719,968.82882,688.51851,694,182.33801,221,249.282,988,299,327.2198,440,779.50184,744,488.9126,022,221.273,297,506,816.89
Interestincome49,428,469.372,890,732.29543,508.8027,921,113.89255,001,470.66335,785,295.011,231,657.131,329,524.29131,487,621.62469,834,098.05
Interestexpense86,468,640.1310,921,214.61-128,204,357.08415,728,796.45641,323,008.2713,108,859.1426,701,866.031,544,029,072.352,225,162,805.79
Investmentincomefromlong-termequityinvestmentsunderequitymethod134,882,198.775,114,173,074.83293,371,940.2253,436,206.601,070,198,985.496,666,062,405.9194,330,245.64424,789,497.20-7,185,182,148.75
Long-termequityinvestmentsunderequitymethod1,741,189,123.5452,146,528,746.228,605,621,312.901,094,348,450.1913,193,855,158.6276,781,542,791.471,496,017,782.5814,086,733,345.00-92,364,293,919.05
Non-currentassetsotherthanlong-termequityinvestments18,338,841,436.044,203,682,076.5615,863,803.6121,159,269,860.5225,053,023,827.8368,770,681,004.562,058,218,100.735,083,564,521.74880,089,692.5576,792,553,319.58

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(2)Financialinformationofreportingsegments-continuedTheGroup'stotalrevenuefromexternaltransactionsinMainlandChinaandothercountriesandregions,andtotalnon-currentassetsotherthanfinancialassetsanddeferredtaxassetslocatedinMainlandChinaandothercountriesandregionsarepresentedasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.Revenuefromexternaltransactions

Revenuefromexternaltransactions20232022
MainlandChina,HongKongandTaiwan10,958,608,605.9312,105,380,701.20
PearlRiverDelta6,600,817,552.327,195,529,214.88
YangtzeRiverDelta557,788,311.931,139,944,516.62
BohaiRim225,600,088.48217,832,344.10
Others3,574,402,653.203,552,074,625.60
Otherlocations4,791,867,174.294,125,108,426.35
Total15,750,475,780.2216,230,489,127.55

Totalnon-currentassets

Totalnon-currentassets31/12/202331/12/2022
MainlandChina,HongKongandTaiwan128,859,143,257.19130,723,044,577.52
PearlRiverDelta40,390,524,565.5142,150,053,552.57
YangtzeRiverDelta56,242,527,381.2456,350,210,822.78
BohaiRim9,297,697,381.319,147,542,234.74
Others22,928,393,929.1323,075,237,967.43
Otherlocations40,908,377,486.1538,433,802,661.11
Total169,767,520,743.34169,156,847,238.63

(3)DegreeofrelianceonmajorcustomersThetotaloperatingincomederivedfromthetopfivecustomersoftheGroupisRMB4,146,867,314.45,accountingfor26.33%oftheGroup'soperatingincome.(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

1.Otherreceivables

1.1Summaryofotherreceivables

Item31/12/202331/12/2022
Dividendsreceivable167,092,526.14147,896,763.88
Otherreceivables1,575,369,144.182,601,740,991.35
Total1,742,461,670.322,749,637,755.23

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

1.Otherreceivables-continued

1.2Dividendsreceivable

(1)Presentationofdividendsreceivable

CHINAMERCHANTSPORTGROUPCO.,LTD.Investee

Investee31/12/202331/12/2022
WharfHoldingsHongKong147,680,363.88147,680,363.88
CMInternationalTech4,758,668.03-
ChiwanShipping(HongKong)Limited3,205,094.23-
ShenzhenPetrochemicalIndustry(Group)Co.,Ltd.216,400.00216,400.00
ChinaOceanShippingAgency(Shenzhen)Co.,Ltd.11,232,000.00-
Total167,092,526.14147,896,763.88
Less:Provisionforcreditloss--
Carryingamount167,092,526.14147,896,763.88

(2)Significantdividendsreceivableagedmorethan1year

Item31/12/202331/12/2022ReasonforoutstandingImpairedornotandthedeterminationbasis
WharfHoldingsHongKong147,680,363.88147,680,363.88Inprocessingandexpectedtoberecoveredin2024No
Total147,680,363.88147,680,363.88

1.3Otherreceivables

(1)Aginganalysisofotherreceivables

Aging31/12/2023
OtherreceivablesProvisionforcreditlossProportionofprovision(%)
Within1year910,122,251.73--
1to2years662,450,976.98--
2to3years2,467,600.00--
Morethan3years711,772.07383,456.6053.87
Total1,575,752,600.78383,456.60——

(2)Disclosureofotherreceivablesbynature

Item31/12/202331/12/2022
Amountsduefromrelatedparties1,553,447,353.902,596,356,894.67
Advances4,965,337.562,467,600.00
Others17,339,909.323,299,953.28
Total1,575,752,600.782,602,124,447.95
Less:Provisionforcreditloss383,456.60383,456.60
Carryingamount1,575,369,144.182,601,740,991.35

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

1.Otherreceivables-continued

1.3Otherreceivables-continued

(3)Provisionforcreditlossofotherreceivables

CHINAMERCHANTSPORTGROUPCO.,LTD.Creditrating

CreditratingExpectedcreditlossrate(%)31/12/202331/12/2022
12-monthECLLifetimeECL(notcredit-impaired)LifetimeECL(credit-impaired)Total12-monthECLLifetimeECL(notcredit-impaired)LifetimeECL(credit-impaired)Total
A0.00-0.101,575,369,144.18--1,575,369,144.182,601,740,991.35--2,601,740,991.35
B0.10-0.30--------
C0.30-50.00--------
D50.00-100.00--383,456.60383,456.60--383,456.60383,456.60
Grosscarryingamount1,575,369,144.18-383,456.601,575,752,600.782,601,740,991.35-383,456.602,602,124,447.95
Provisionforcreditloss--383,456.60383,456.60--383,456.60383,456.60
Carryingamount1,575,369,144.18--1,575,369,144.182,601,740,991.35--2,601,740,991.35

(4)Provision,recoveryandreversalofcreditlossofotherreceivables

ItemStage1Stage2Stage3Total
12-monthECLLifetimeECL(notcredit-impaired)LifetimeECL(credit-impaired)
At1January2023--383,456.60383,456.60
Balanceofotherreceivablesat1January2023
-TransfertoStage2----
-TransfertoStage3----
-ReversetoStage2----
-ReversetoStage1----
Provisionfortheyear----
Reversalfortheyear----
Transferoutduetoderecognitionoffinancialassets(includingdirectwrite-down)----
Otherchanges----
At31December2023--383,456.60383,456.60

(5)Detailsofbaddebtprovision

Category31/12/2022Changesfortheyear31/12/2023
ProvisionRecoveryorreversalEffectofchangesinthescopeofconsolidationCharge-offorwrite-offOtherchanges
Baddebtprovisionassessedonanindividualbasis383,456.60-----383,456.60
Baddebtprovisionassessedonaportfoliobasis-------
Total383,456.60-----383,456.60

(6)TheCompanyhasnorecoveryorreversalofsignificantprovisionforcreditlossinthe

currentyear.

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

1.Otherreceivables-continued

(7)TheGrouphasnootherreceivableswrittenoffduringtheyear.

(8)Thetopfivebalancesofotherreceivablesattheendoftheyearclassifiedbydebtor

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofentity

NameofentityRelationshipwiththeCompanyNatureClosingbalanceAgingProportiontototalotherreceivables(%)Closingbalanceofprovisionforcreditloss
ShenzhenHaixingSubsidiaryLoantorelatedparties1,541,029,169.74Within1year,1-2years97.80-
WharfHoldingsHongKongSubsidiaryLeasepayment15,189,918.60Within1year0.96-
ShunkongPortSubsidiaryLoantorelatedparties12,418,184.16Within1year,1-2years0.79-
CMInternationalTechSubsidiaryAdvances2,467,600.002-3years0.16-
ShenzhenShekouLocalTaxationBureauThirdpartyOthers711,772.07Morethan3years0.05-
Total1,571,816,644.5799.76-

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued

2.Long-termequityinvestments

(1)Breakdownoflong-termequityinvestments

CHINAMERCHANTSPORTGROUPCO.,LTD

Investee

Investee31/12/2022Changesfortheyear31/12/2023Closingbalanceofprovisionforimpairment
IncreaseDecreaseInvestmentincomeunderequitymethodReconciliationofothercomprehensiveincomeOtherequitymovementsCashdividendsorprofitdeclaredProvisionforimpairmentOthers
I.Subsidiaries
ShenzhenChiwanInternationalFreightAgencyCo.,Ltd.5,500,000.00--------5,500,000.00-
ShenzhenChiwanHarborContainerCo.Ltd.250,920,000.00--------250,920,000.00-
ShenzhenChiwanPortDevelopmentCo.,Ltd.206,283,811.09--------206,283,811.09-
WharfHoldingsHongKong1,070,000.00--------1,070,000.00-
ShenzhenChiwanTugboatCo.,Ltd.24,000,000.00--------24,000,000.00-
ChiwanContainerTerminalCo.,Ltd.421,023,199.85--------421,023,199.85-
ShenchiwanPortAffairs186,525,000.00--------186,525,000.00-
DongguanShenchiwanWharfCo.,Ltd.175,000,000.00--------175,000,000.00-
ChiwanShipping(HongKong)Limited1,051,789.43--------1,051,789.43-
CMPort(Note1)168,841,768.3512,474,393.06-------181,316,161.41-
ZhoushanRoRo149,709,800.00------43,605,014.00-106,104,786.0043,605,014.00
ZhanjiangPort3,381,825,528.52--------3,381,825,528.52-
CMInternationalTech(Note2)20,561,075.02109,901,500.00-------130,462,575.02-
SanyaMerchantsPortDevelopmentCo.,Ltd.2,040,000.00--------2,040,000.00-
PortsDevelopment(HongKong)Limited29,203,045,326.23--------29,203,045,326.23-
ShunkongPort(Note3)50,000,000.00144,673,400.00-------194,673,400.00-
GuangdongYidePortCo.,Ltd.131,866,700.00--------131,866,700.00-
Sub-total34,379,263,998.49267,049,293.06-----43,605,014.00-34,602,708,277.5543,605,014.00
II.Associates
NingboZhoushan16,228,879,526.87--966,972,107.6418,734,157.32-45,798,686.57-355,122,265.53--16,813,664,839.73-
ChinaMerchantsNortheastAsiaDevelopment&InvestmentCo.,Ltd.1,017,010,205.71--1,668,941.79--144,795.94---1,018,534,351.56-
ChinaMerchantsBondedLogisticsCo.,Ltd.412,362,918.79--54,128,341.59---84,285,525.91--382,205,734.47-
AntongHoldings(Note4)-892,445,435.37-29,869,705.60-17,223.61---922,332,364.58-
Sub-total17,658,252,651.37892,445,435.37-1,052,639,096.6218,734,157.32-45,926,258.90-439,407,791.44--19,136,737,290.34-
III.Jointventures--
YantaiPortGroupLaizhouPortCo.,Ltd.794,153,389.74--38,645,587.47-280,000.00-1,858,614.11-28,133,178.67--802,527,184.43-
FujianZhaohangLogisticsManagementPartnership(LimitedPartnership)592,134,266.75--21,878,659.99-714,032.74---614,726,959.48-
ShenzhenGangtengInternetTechnologyCo.,Ltd.(Note5)9,809,165.143,750,000.00--1,640,538.15-----11,918,626.99-
Sub-total1,396,096,821.633,750,000.0058,883,709.31-280,000.00-1,144,581.37-28,133,178.67--1,429,172,770.90-
Total53,433,613,471.491,163,244,728.43-1,111,522,805.9318,454,157.32-47,070,840.27-467,540,970.1143,605,014.00-55,168,618,338.7943,605,014.00

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

2.Long-termequityinvestments-continued

(1)Detailsoflong-termequityinvestments-continuedNote1:DetailsaresetoutinNote(XI)1.(1).Note2:DetailsaresetoutinNote(XI)2.(1).Note3:InJulyandDecember2023,theCompanyandGuangdongShunkongCityInvestment

RealEstateCo.Ltd.enteredintoacapitalincreaseagreementforShunkongPortintwoparts,wherebythetwopartiesagreedtoincreasethecapitalbyRMB218,751,400.00andRMB153,823,600.00togetherinaccordancewiththeirrespectiveshareholdingratiosof51%and49%,ofwhichtheCompanycontributedRMB111,563,200.00andRMB78,450,000.00.Accordingtothecapitalincreaseagreement,theCompanypaidatotalofRMB144,673,400.00forthecapitalincreaseattheendoftheyear.Theshareholdingratioofthetwoinvestorsremainedunchangedafterthecapitalincrease.Note4:DetailsaresetoutinNote(VIII)14.Note5:TheCompanyfulfilledtheinvestmentagreementinthecurrentyearandpaidthesecond

contributionamountingtoRMB3,750,000.00.

(2)Detailsofimpairmenttestingoflong-termequityinvestments

TheCompanyrecognizedaprovisionforimpairmentoflong-termequityinvestmentsamountingtoRMB43,605,014.00basedontheshareofZhoushanRoRo'srecoverableamount,refertoNote(VIII),16.2(7)fordetails.

3.Operatingincomeandoperatingcosts

CHINAMERCHANTSPORTGROUPCO.,LTD

Item

Item20232022
IncomeCostIncomeCost
Principaloperation----
Otheroperations17,326,885.293,686,411.843,669,891.362,276,202.60
Total17,326,885.293,686,411.843,669,891.362,276,202.60

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

4.Investmentincome

(1)Detailsofinvestmentincome

CHINAMERCHANTSPORTGROUPCO.,LTDItem

Item20232022
Incomefromlong-termequityinvestmentsundercostmethod416,405,658.26549,150,517.02
Incomefromlong-termequityinvestmentsunderequitymethod1,111,522,805.93384,257,363.02
Incomefromheld-for-tradingfinancialassets49,614,971.08120,227,079.12
Incomefrominvestmentsinotherequityinstruments20,056,500.00-
Incomefromdisposaloflong-termequityinvestments--20,508.07
Total1,597,599,935.271,053,614,451.09

(2)Incomefromlong-termequityinvestmentsundercostmethod

Investee20232022Reasonforchanges
ChiwanContainerTerminalCo.,Ltd.149,527,479.94166,925,696.05Changesinprofitdistributionofinvestee
ShenzhenChiwanHarborContainerCo.Ltd.111,712,423.41173,751,858.77Changesinprofitdistributionofinvestee
ZhanjiangPort36,552,790.1891,862,080.91Changesinprofitdistributionofinvestee
DongguanShenchiwanWharfCo.,Ltd.33,386,741.7437,543,998.58Changesinprofitdistributionofinvestee
DongguanShenchiwanPortAffairsCo.,Ltd.26,519,896.5018,111,237.23Changesinprofitdistributionofinvestee
ShenzhenChiwanTugboatCo.,Ltd.20,137,075.4429,238,925.84Changesinprofitdistributionofinvestee
CMPort11,184,689.7211,069,965.98Changesinprofitdistributionofinvestee
ShenzhenChiwanPortDevelopmentCo.,Ltd.9,751,697.7320,415,654.72Changesinprofitdistributionofinvestee
CMInternationalTech9,517,336.07-Changesinprofitdistributionofinvestee
ChiwanShipping(HongKong)Limited7,902,673.23-Changesinprofitdistributionofinvestee
ShenzhenChiwanInternationalFreightAgencyCo.,Ltd.212,854.30231,098.94Changesinprofitdistributionofinvestee
Total416,405,658.26549,150,517.02--

SUPPLEMENTARYINFORMATIONFORTHEYEARENDED31DECEMBER2023

1.BREAKDOWNOFNON-RECURRINGPROFITORLOSS

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemAmountRemark
Gainsorlossesondisposalofnon-currentassets,includingthosechargedoffforwhichprovisionforimpairmentofassetshasbeenmade231,205,985.85
Governmentgrantsrecognizedinprofitorloss(otherthangrantswhicharecloselyrelatedtotheCompany'sbusiness,inlinewiththenationalregulations,enjoyedunderestablishedstandardsandhaveacontinuousimpactontheCompany'sprofitorloss)149,238,503.34
Incomeearnedfromlendingfundstonon-financialinstitutionsandrecognizedinprofitorloss194,897,544.80
Theexcessofattributablefairvalueofidentifiablenetassetsovertheconsiderationpaidforsubsidiaries,associatesandjointventures-
Gainsorlossesonexchangeofnon-monetaryassets-
Gainsorlossesonentrustedinvestmentsorassetmanagement-
Lossesonassetsduetoforcemajeure,e.g.,naturaldisasters-
Gainsorlossesondebtrestructuring-
Lump-sumcostsincurredbytheenterprisesasaresultofthediscontinuationofrelevantbusinessactivities,e.g.,expenditureforlayoffofemployees,etc.-
Gainsfromtransactionswithunfairtransactionprice-
Netprofitorlossofsubsidiariesrecognizedasaresultofbusinesscombinationofenterprisesundercommoncontrolfromthebeginningoftheperioduptothebusinesscombinationdate-
Gainsorlossesarisingfromcontingenciesotherthanthoserelatedtonormaloperatingbusiness-
Gainsorlossesfromchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprisesotherthaneffectivehedgingoperationrelatingtotheCompany'snormaloperations,andgainsorlossesfromdisposaloffinancialassetsandfinancialliabilities73,352,800.52
Reversalofprovisionforaccountsreceivablethataretestedforimpairmentindividually52,962,785.14
Gainsorlossesonentrustedloans-
Gainsorlossesfromchangesinfairvalueofinvestmentpropertiesthataresubsequentlymeasuredusingthefairvaluemodel-
One-timeeffectofadjustmentsintaxlawsandaccountinglawsandregulationsonprofitorlossfortheperiod-
Custodianfeesearnedfromentrustedoperation-
Share-basedpaymentexpensesrecognizedonceduetothecancellationormodificationofequityincentiveplans-
Forcash-settledshare-basedpayments,gainsorlossesarisingfromchangesinfairvalueofemployeebenefitspayableafterthevestingdate-
Othernon-operatingincomeorexpensesotherthanabove12,810,280.19
Otherprofitorlossthatmeetsthedefinitionofnon-recurringprofitorloss-
Taxeffects-145,340,260.29
Effectsofminorityinterests(aftertax)-336,553,661.12
Total232,573,978.43

TherevisedExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesMakingPublicOffering-Non-recurringProfitorLoss(Revisedin2023)wasissuedbytheChinaSecuritiesRegulatoryCommissionon22December2023,andtheeffectoftherevisiononnon-recurringprofitorlossforthecomparableaccountingperiodsisreflectedasadecreaseofnon-recurringprofitorlossbyRMB18,600,132.64.

SUPPLEMENTARYINFORMATIONFORTHEYEARENDED31DECEMBER2023

2.RETURNONNETASSETSANDEARNINGSPERSHARE("EPS")ThereturnonnetassetsandEPShavebeenpreparedbytheCompanyinaccordancewithInformationDisclosureandPresentationRulesforCompaniesMakingPublicOfferingNo.9-CalculationandDisclosureofReturnonNetAssetsandEarningsperShare(revisedin2010)issuedbyChinaSecuritiesRegulatoryCommission.

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemWeightedaveragereturnonnetassets(%)EPS
BasicEPSDilutedEPS
Netprofitattributabletoordinaryshareholders6.34551.42921.4292
Netprofitattributabletoordinaryshareholdersafterdeductingnon-recurringprofitorloss5.93241.33621.3362

SUPPLEMENTARYINFORMATIONFORTHEYEARENDED31DECEMBER2023

3.SUPPLEMENTARYINFORMATIONRELATINGTOITEMSINTHEFINANCIAL

STATEMENTSDUETORETROSPECTIVEAPPLICATIONOFACCOUNTINGPOLICIES

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item31/12/202331/12/20221/1/2022Item31/12/202331/12/20221/1/2022
CurrentAssets:Currentliabilities:
Cashandbankbalances16,079,646,178.2413,615,928,739.4012,772,349,406.77Short-termborrowings15,714,045,288.977,164,338,366.1813,651,452,805.36
Held-for-tradingfinancialassets4,568,806,108.842,998,781,599.636,921,831,502.55Notespayable73,461,165.82-1,895,987.17
Notesreceivable325,150,195.0936,395,000.006,081,611.95Accountspayable691,765,137.25811,149,397.66843,820,438.51
Accountsreceivable1,103,901,466.251,276,149,689.441,320,577,577.81Receiptsinadvance17,387,537.369,886,531.599,313,166.01
Receivablesfinancing2,001,669.46163,766,913.10238,429,402.71Contractliabilities142,080,101.00141,899,551.03196,784,525.26
Prepayments37,664,552.3063,627,425.4251,606,794.20Employeebenefitspayable917,964,606.65936,834,718.13820,416,415.47
Otherreceivables940,014,994.01948,842,094.30696,276,595.87Taxespayable923,053,572.50917,933,169.092,162,719,251.68
Inventories218,898,192.87225,122,821.48194,920,136.12Otherpayables1,654,622,170.021,755,885,258.262,140,108,341.08
Assetsheld-for-sale--337,442,757.28Non-currentliabilitiesduewithinoneyear6,817,404,289.2511,641,223,688.958,268,209,284.17
Non-currentassetsduewithinoneyear17,451,380.98902,225,293.93102,356,461.97Othercurrentliabilities2,143,842,534.533,161,147,525.962,158,497,775.85
Othercurrentassets189,673,500.87185,903,140.53339,684,297.41Totalcurrentliabilities29,095,626,403.3526,540,298,206.8530,253,217,990.56
Totalcurrentassets23,483,208,238.9120,416,742,717.2322,981,556,544.64Non-currentLiabilities:
Non-currentAssets:Long-termborrowings18,227,543,954.7112,390,099,177.857,144,839,870.89
Long-termreceivables3,856,466,116.995,661,327,499.076,162,713,861.02Bondspayable14,287,508,564.1519,088,293,099.0216,670,872,414.14
Long-termequityinvestments96,666,117,776.2792,364,293,919.0570,353,451,824.52Including:Preferredshares---
Othernon-currentfinancialassets877,576,442.831,745,740,896.41809,515,244.87Perpetualbonds---
Investmentsinotherequityinstruments157,461,648.16171,945,275.02180,251,798.43Provisions1,001,172,206.92948,350,914.041,055,194,906.09
Investmentproperties4,958,374,968.795,123,690,119.565,298,238,414.88Leaseliabilities3,822,862,202.173,551,315,590.313,422,179,366.40
Fixedassets28,986,538,326.3532,033,326,083.5031,710,513,230.29Long-termpayables603,009,921.91639,095,931.43588,681,492.63
Constructioninprogress2,909,817,281.462,413,844,407.642,557,584,953.92Long-termemployeebenefitspayable85,590,059.4135,365,156.4324,247,302.42
Right-of-useassets9,441,668,311.229,342,642,222.338,743,077,542.19Deferredincome1,024,776,557.731,031,273,189.741,075,957,884.91
Intangibleassets18,073,062,184.7219,277,065,115.6118,475,412,380.93Deferredtaxliabilities4,659,638,104.374,855,019,835.334,552,418,519.70
Developmentexpenditure50,990,153.1817,412,196.1682,391,225.85Othernon-currentliabilities179,634,263.73186,383,117.00163,065,578.53
Goodwill6,493,002,246.446,411,426,891.096,024,160,942.07Totalnon-currentliabilities43,891,735,835.1042,725,196,011.1534,697,457,335.71
Long-termprepaidexpenses993,793,505.29986,356,904.90975,994,541.52TOTALLIABILITIES72,987,362,238.4569,265,494,218.0064,950,675,326.27
Deferredtaxassets415,063,477.03434,498,820.95454,644,724.39Owners'equity:
Othernon-currentassets1,194,155,989.621,186,789,378.791,231,092,952.69Sharecapital2,499,074,661.002,499,074,661.001,922,365,124.00
Totalnon-currentassets175,074,088,428.35177,170,359,730.08153,059,043,637.57Including:Preferredshares---
Perpetualbonds---
Capitalreserve37,076,846,803.0634,751,640,835.2523,592,702,758.70
Less:Treasuryshares---
Othercomprehensiveincome-903,626,594.35-689,553,619.86-890,125,318.18
Specialreserve34,003,994.4126,358,259.979,184,429.12
Surplusreserve1,095,980,563.681,001,917,449.15961,182,562.00
Unappropriatedprofit19,045,313,519.7516,701,988,301.1414,226,931,466.66
TotalequityattributabletoequityholdersoftheCompany58,847,592,947.5554,291,425,886.6539,822,241,022.30
Minorityinterests66,722,341,481.2674,030,182,342.6671,267,683,833.64
TOTALOWNERS'EQUITY125,569,934,428.81128,321,608,229.31111,089,924,855.94
TOTALASSETS198,557,296,667.26197,587,102,447.31176,040,600,182.21TOTALLIABILITIESANDOWNERS'EQUITY198,557,296,667.26197,587,102,447.31176,040,600,182.21
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