CHINAMERCHANTSPORTGROUPCO.,LTD.
INTERIMREPORT2021
DateofDisclosure:31August2021
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
PartIImportantNotes,TableofContentsandDefinitions
TheBoardofDirectors(orthe“Board”),theSupervisoryCommitteeaswellasthedirectors,supervisorsandseniormanagersofChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoasthe“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthecontentsofthisReportanditssummary,andshallbejointlyandseverallyliableforanymisrepresentations,misleadingstatementsormaterialomissionstherein.WangXiufeng,theCompany’slegalrepresentative,TuXiaoping,theCompany’sChiefFinancialOfficer,andSunLigan,theperson-in-chargeoftheaccountingorganherebyguaranteethatthefinancialstatementscarriedinthisReportarefactual,accurateandcomplete.AlltheCompany’sdirectorshaveattendedtheBoardmeetingforthereviewofthisReportanditssummary.Anyforward-lookingstatementssuchasfutureplansordevelopmentstrategiesmentionedhereinshallnotbeconsideredastheCompany’spromisestoinvestors.Andinvestorsareremindedtoexercisecautionwhenmakinginvestmentdecisions.PossiblerisksfacedbytheCompanyandcountermeasureshavebeenexplainedin“PartIIIManagementDiscussionandAnalysis”herein,whichinvestorsarekindlyremindedtopayattentionto.SecuritiesTimes,ShanghaiSecuritiesNews,TaKungPao(HK)andwww.cninfo.com.cnhavebeendesignatedbytheCompanyforinformationdisclosure.AndallinformationabouttheCompanyshallbesubjecttowhat’sdisclosedontheaforesaidmedia.TheCompanyisnotsubjecttoanyindustry-specificdisclosurerequirements.TheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.ThisReportanditssummaryhavebeenpreparedinbothChineseandEnglish.Shouldtherebeanydiscrepanciesormisunderstandingsbetweenthetwoversions,theChineseversionsshallprevail.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
TableofContents
PartIImportantNotes,TableofContentsandDefinitions ...... 1
PartIICorporateInformationandKeyFinancialInformation ...... 6
PartIIIManagementDiscussionandAnalysis ...... 10
PartIVCorporateGovernance ...... 37
PartVEnvironmentalandSocialResponsibility ...... 40
PartVISignificantEvents ...... 47
PartVIIShareChangesandShareholderInformation ...... 60
PartVIIIPreferenceShares ...... 66
PartIXBonds ...... 67
PartXFinancialStatements ...... 71
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
DocumentsAvailableforReferenceI.FinancialStatementscarryingthesignaturesandstampsoftheCompanyPrincipal,theChiefFinancialOfficerandthepersoninchargeofaccountingfirm;II.Originalcopiesofalldocumentsandtheannouncementsthereofdisclosedinthereportingperiodon“SecuritiesTimes”,“ShanghaiSecuritiesNews”and“TaKungPao”.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
Definitions
| Term | Definition |
| The“Company”,“CMPort”or“we” | ChinaMerchantsPortGroupCo.,Ltd.,formerlyknownas“ShenzhenChiwanWharfHoldingsLimited” |
| CMG | ChinaMerchantsGroupCo.,Limited |
| CMPortHoldings | ChinaMerchantsPortHoldingsCompanyLimited(00144.HK) |
| CSRC | ChinaSecuritiesRegulationCommission |
| JifaLogistics | DalianPortJifaLogisticsCo.,Ltd. |
| DPCD | DalianPortContainerDevelopmentCo.,Ltd. |
| YingkouPortGroup | YingkouPortGroupCo.,Ltd. |
| DPN | DalianPortLogisticsNetworkCo.,Ltd. |
| YPIT | YingkouPortInformationTechnologyCo.,Ltd. |
| CMIT/CMHIT | ChinaMerchantsInternationalTechnologyCo.,Ltd.,formerlyknownasChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd. |
| DongguanMachong | DongguanChiwanPortServiceCo.,Ltd. |
| ShantouPort | ShantouCMPortGroupCo.,Ltd. |
| ZhanjiangPort | ZhanjiangPort(Group)Co.,Ltd. |
| ShundeNewPort | GuangdongYidePortLimited |
| ZhangzhouPort | ZhangzhouChinaMerchantsPortCo.,Ltd. |
| CMICT | NingboDaxieChinaMerchantsInternationalContainerTerminalCo.,Ltd. |
| CICT | ColomboInternationalContainerTerminalsLtd. |
| HIPG | HambantotaInternationalPortGroup |
| LCT | LomeContainerTerminalsLtd. |
| TCP | TCPParticipa??esS.A |
| CMePort | Thewharfe-commerceplatform,i.e.theunifiedcustomerserviceplatform |
| TEU | TwentyFootEquivalentUnit |
| HaixingHarbor | ShenzhenHaixingHarborDevelopmentCo.,Ltd. |
| YingkouPort | YingkouPortCo.,Ltd. |
| LiaoningPort/DalianPort | LiaoningPortCo.,Ltd.,formerlyknownasDalianPort(PDA)CompanyLimited |
| SASACoftheStateCouncil | State-OwnedAssetsSupervisionandAdministrationCommissionoftheStateCouncil |
| SIPG | ShanghaiInternationalPort(Group)Co.,Ltd. |
| TianjinPortContainerTerminal | TianjinPortContainerTerminalCo.,Ltd. |
| QQCTU | QingdaoQianwanUnitedContainerTerminalCo.,Ltd. |
| CMCS | ChinaMerchantsContainerServicesLimited |
| ModernTerminals | ModernTerminalsLimited |
| TaiwanKaoMingContainer | KaoMingContainerTerminalCorp. |
| TL | TerminalLinkS.A.S. |
| Kumport | KumportLimanHizmetleriveLojistikSanayiveTicaretAnonimSirketi |
| PDSA | PortdeDjiboutiS.A. |
| TICT | Tin-CanIslandContainerTerminalLtd. |
| QQTU | QingdaoQianwanUnitedTerminalCo.,Ltd. |
| QingdaoDongjiakou | QingdaoPortDongjiakouOreTerminalCo.,Ltd. |
| LaizhouPort | ChinaShippingPort(Laizhou)Co.,Ltd. |
| XiamenPort | ZhangzhouChinaMerchantsXiamenPortAffairsCo.,Ltd. |
| NingboPort | NingboZhoushanPortCompanyLimited |
| Thecninfowebsite | www.cninfo.com.cn |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| COD | ChemicalOxygenDemand |
| RTG | RubberTyreGantry |
| VOC | VolatileOrganicCompounds |
| PCR | PolymeraseChainReaction |
| Pk23 | Pk23Community,DjiboutiCity |
| SZSE | ShenzhenStockExchange |
| The“ArticlesofAssociation” | TheArticlesofAssociationofChinaMerchantsPortGroupCo.,Ltd. |
| RMBRMB’0,000RMB’00,000,000 | ExpressedintheChinesecurrencyofRenminbiExpressedintensofthousandsofRenminbiExpressedinhundredsofmillionsofRenminbi(unlessotherwisespecified) |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
PartIICorporateInformationandKeyFinancialInformation
ICorporateInformation
| Stockname | CMPortGroup/CMPortGroupB | Stockcode | 001872/201872 |
| Stockexchangeforstocklisting | ShenzhenStockExchange | ||
| CompanynameinChinese | 招商局港口集团股份有限公司 | ||
| Abbr.(ifany) | 招商港口 | ||
| CompanynameinEnglish(ifany) | ChinaMerchantsPortGroupCo.,Ltd. | ||
| Abbr.(ifany) | CMPort | ||
| Legalrepresentative | WangXiufeng | ||
IIContactInformation
| BoardSecretary | SecuritiesRepresentative | |
| Name | LiYubin | HuJingjing |
| Address | 24/F,ChinaMerchantsPortPlaza,1Gongye3rdRoad,ZhaoshangStreet,Nanshan,Shenzhen,PRC | 24/F,ChinaMerchantsPortPlaza,1Gongye3rdRoad,ZhaoshangStreet,Nanshan,Shenzhen,PRC |
| Tel. | +8675526828888 | +8675526828888 |
| Fax | +8675526886666 | +8675526886666 |
| Emailaddress | Cmpir@cmhk.com | Cmpir@cmhk.com |
IIIOtherInformation
1.ContactInformationoftheCompanyIndicatebytickmarkwhetheranychangeoccurredtotheregisteredaddress,officeaddressandtheirzipcodes,websiteaddressandemailaddressoftheCompanyintheReportingPeriod.
□Applicable√NotapplicableNochangeoccurredtothesaidinformationintheReportingPeriod,whichcanbefoundinthe2020AnnualReport.
2.MediaforInformationDisclosureandPlacewherethisReportisLodgedIndicatebytickmarkwhetheranychangeoccurredtotheinformationdisclosuremediaandtheplaceforlodgingtheCompany’speriodicreportsintheReportingPeriod.
□Applicable√Notapplicable
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
ThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfordisclosingtheCompany’speriodicreportsandtheplaceforlodgingsuchreportsdidnotchangeintheReportingPeriod.Thesaidinformationcanbefoundinthe2020AnnualReport.
3.OtherRelevantInformationIndicatebytickmarkwhetheranychangeoccurredtotheotherrelevantinformationintheReportingPeriod.
□Applicable√NotapplicableIVKeyFinancialInformationIndicatebytickmarkwhetherthereisanyretrospectivelyrestateddatuminthetablebelow.
√Yes□NoReason:BusinesscombinationundercommoncontrolOn18December2020,theCompanysignedtheEquitySubscriptionandCapitalIncreaseAgreementforCMHITwiththeCompany'ssubsidiaries,CMPortHoldingsandCMHIT,JifaLogistics,DPCD,andYingkouPortGroup.AccordingtotheEquitySubscriptionandCapitalIncreaseAgreement,JifaLogisticsandDPCDwouldincreasethecapitalofCMHITwith29.40%and49.63%oftheirrespectivesharesinDPN,andYingkouPortGroupwouldincreasethecapitalofCMHITwith100%ofitsequityinYPIT.Beforeandafterthemerger,CMHIT,DPNandYPITareallsubjecttothefinalcontrolofCMG,theactualcontrolleroftheCompany,andsuchcontrolisnottemporary.Theabovecapitalincreasewascompletedon9February2021.Uponcompletionofthecapitalincrease,CMHITchangeditsnametoCMIT.TheCompany,CMPortHoldings,JifaLogistics,DPCDandYingkouPortGroupwillhold13.18%,43.74%,13.26%,22.38%and7.44%equityinCMIT,respectively.CMITremainsamajority-ownedsubsidiaryoftheCompany.CMITholds
79.03%equityinDPNand100%equityinYPITrespectively,andisabletoexercisecontroloverthelattertwocompanies.Therefore,since9February2021,theCompanywillfollowthe
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
accountingprocessingmethodforenterprisemergerunderthesamecontrolandincludeDPNandYPITintheconsolidatedscopeoftheCompany'sconsolidatedfinancialstatementsfromthebeginningofthecomparativefinancialstatementperiod.
| H12021 | H12020 | Change(%) | ||
| Original | Restated | Restated | ||
| Operatingrevenue(RMB) | 7,339,942,862.26 | 5,922,497,158.48 | 5,962,497,716.96 | 23.10% |
| Netprofitattributabletothelistedcompany’sshareholders(RMB) | 1,677,035,346.17 | 632,798,585.83 | 632,292,086.16 | 165.23% |
| Netprofitattributabletothelistedcompany’sshareholdersbeforeexceptionalgainsandlosses(RMB) | 1,644,696,060.97 | 544,591,914.54 | 544,085,414.87 | 202.29% |
| Netcashgeneratedfrom/usedinoperatingactivities(RMB) | 2,934,960,407.96 | 2,071,426,144.92 | 2,057,741,203.08 | 42.63% |
| Basicearningspershare(RMB/share) | 0.87 | 0.33 | 0.33 | 163.64% |
| Dilutedearningspershare(RMB/share) | 0.87 | 0.33 | 0.33 | 163.64% |
| Weightedaveragereturnonequity(%) | 4.43% | 1.77% | 1.76% | 2.67% |
| 30June2021 | 31December2020 | Change(%) | ||
| Original | Restated | Restated | ||
| Totalassets(RMB) | 168,701,333,012.06 | 168,543,611,777.21 | 168,728,326,345.77 | -0.02% |
| Equityattributabletothelistedcompany’sshareholders(RMB) | 38,143,327,362.51 | 37,117,806,052.18 | 37,165,277,744.78 | 2.63% |
ThetotalsharecapitalattheendofthelasttradingsessionbeforethedisclosureofthisReport:
| TotalsharecapitalattheendofthelasttradingsessionbeforethedisclosureofthisReport(share) | 1,922,365,124 |
Fullydilutedearningspersharebasedonthelatesttotalsharecapitalabove:
| Fullydilutedearningspersharebasedonthelatesttotalsharecapitalabove(RMB/share) | 0.87 |
VAccountingDataDifferencesunderChina’sAccountingStandardsforBusinessEnterprises(CAS)andInternationalFinancialReportingStandards(IFRS)andForeignAccountingStandards
1.NetProfitandEquityunderCASandIFRS
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
2.NetProfitandEquityunderCASandForeignAccountingStandards
□Applicable√NotapplicableNodifferencefortheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
3.ReasonsforAccountingDataDifferencesbetweenDomesticsandForeignAccountingPrinciple
□Applicable√NotapplicableVIExceptionalGainsandLosses
Unit:RMB
| Item | Amount | Note |
| Gainorlossondisposalofnon-currentassets(inclusiveofimpairmentallowancewrite-offs) | 4,731,273.76 | - |
| Governmentsubsidieschargedtocurrentprofitorloss(exclusiveofgovernmentsubsidiesgivenintheCompany’sordinarycourseofbusinessatfixedquotasoramountsasperthegovernment’suniformstandards) | 292,333,022.53 | - |
| Capitaloccupationchargesonnon-financialenterprisesthatarechargedtocurrentprofitorloss | 118,821,999.88 | - |
| Currentprofitorlossonsubsidiariesobtainedinbusinesscombinationsinvolvingenterprisesundercommoncontrolfromtheperiod-beginningtocombinationdates,net | -3,255,790.50 | - |
| Gainorlossonfair-valuechangesinheld-for-tradingandderivativefinancialassetsandliabilities&incomefromdisposalofheld-for-tradingandderivativefinancialassetsandliabilitiesandotherinvestmentsindebtobligations(exclusiveoftheeffectiveportionofhedgesthatariseintheCompany’sordinarycourseofbusiness) | -488,532,866.45 | - |
| Reversedportionsofimpairmentallowancesforaccountsreceivableandcontractassetswhicharetestedindividuallyforimpairment | 94,099.17 | - |
| Custodianfeesearnedfromentrustedoperation | 471,698.11 | - |
| Non-operatingincomeandexpenseotherthantheabove | 19,007,039.27 | - |
| Less:Incometaxeffects | -74,697,555.98 | - |
| Non-controllinginterestseffects(netoftax) | -13,971,253.45 | - |
| Total | 32,339,285.20 | -- |
ExplanationofwhytheCompanyreclassifiesrecurrentgain/lossasanexceptionalgain/lossitemdefinedorlistedintheExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic—ExceptionalGain/LossItems:
□Applicable√NotapplicableNosuchcasesfortheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
PartIIIManagementDiscussionandAnalysis
IPrincipalActivityoftheCompanyintheReportingPeriod
1.MainbusinessscopeandbusinessmodelsTheCompanyisprincipallyengagedinthehandling,warehousingandtransportationofcontainersandbulkcargoes,aswellastheprovisionofotherancillaryservices.Itprincipallyoperates27containerberthsand17bulkcargoberthsintheportsinWestShenzhenandDongguanMachong,9containerberths,2bulkcargoberths,10generalcargoberths,and1coal-handlingspecificberthinShantouPort,2containerberthsand33bulkcargoberthsinZhanjiangPort,4multi-purposeberthsinShundePort,2containerberthsand6bulkcargoberthsinZhangzhouPort,4containerberthsinNingboDaxie,4containerberthsinCICT,SriLanka,4multi-purposeberths,2oilberthsand4containerberthsinHIPG,SriLanka,3containerberthsinLCT,Togo,and4containerberthsinTCP,Brazil.Moreover,theCompanyinvestsincontainerhubsinShanghai,NingboandTianjinandexpandsitslayouttoportsinAsia,Africa,Europe,Oceania,SouthAmericaandNorthAmerica.ThemajorbusinesssegmentsofChinaMerchantsPortGroupCo.,Ltd.areasfollows:
| BusinessSegments | Applications |
| Cargohandlingandwarehousing | Containerhandlingandwarehousing:theCompanyprovidesshipberthing,loadinganddischargingservicestoshipcompanies,offerscontainerstorageservicetoshipcompaniesandcargoownersandprovidesoverheadboxservicestotractorcompanies.TheCompanyalsoengagesinthebusinessesofdivisionormergerofcargoesincontainers,containerleasingandcontainermaintenance;Bulkcargohandlingandwarehousing:theCompanyisengagedinbulkcargohandlingandtransportationinportzones,aswellasstorageservicesinyards.Themajortypesofcargoeshandledincludefood,steel,woodsandsandstones. |
| Ancillaryport-relatedservices | Theancillaryport-relatedservicesoftheCompanymainlyincludetugboatberthingassistanceandbargeservicesatthearrivalofshipstotheports,tallyinginthecourseofcargohandling,andsupplyofshorepowerandfreshwaterforvessels. |
| Bondedlogisticsoperations | TheCompanyprovidesvariousservicesforclients(includinglogisticscompanies,tradingcompaniesorcargoowners),forexample,warehouse/yardleasing,loadingandunloadinginwarehouses/yards,customsclearanceanddivisionormergerofcargoesatterminals.Italsoprovidesdocumentationservicesfortractorsarrivingorleavingthebondedlogisticsparks. |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
2.DevelopmentstageandcyclicalcharacteristicoftheindustryinwhichtheCompanyoperatesanditsindustrypositionduringtheReportingPeriod
(1)ExternaleconomicenvironmentInthefirsthalfof2021,majoreconomiessuchastheUnitedStatesandEuropehaveeasedthepandemicandacceleratedvaccination.DespitetherecurringpandemicsituationsinsomeEuropeanandAmericancountriesanddevelopingcountries,theglobaleconomyhasrecoveredandcontinuedtorecoveramidstfluctuationsbecauseofthefiscalandmonetarystimuluspoliciesgenerallyadoptedbyvariouscountriesandtheresumptionofindustrialproductionandconsumptionactivities.Amongthem,theproductionsidewasgraduallyapproachingthelevelbeforethepandemic,whiletheconsumptionsidewasacceleratingrecovery,withthetradeingoodsandservicescontinuedtogrowsteadily.Accordingtothe“WorldEconomicOutlook”reportpublishedbytheInternationalMonetaryFund(“IMF”)inJuly2021,theglobaleconomyin2021wasexpectedtogrowby6%,representingayear-on-yearincreaseof9.2percentagepoints.Amongthat,growthforecastsfordevelopedeconomieswereadjustedupwardsandtheywereprojectedtogrowby5.6%,upby10.2percentagepointsyear-on-year,whilegrowthprospectsinemergingmarketsanddevelopingeconomiesdeterioratedandtheywereexpectedtogrowby6.3%,upby8.4percentagepointsyear-on-year.Besides,accordingtotheforecastoftheWorldTradeOrganization(WTO)inApril,globaltradewillincreaseby8%in2021duetotherapidpromotionofvaccinesandthestronggovernmentinterventionintheeconomy.Benefitingfromthegoodresultsofpandemicpreventionandcontrolandthesupportofthe"SixStabilities"(六穩)and"SixSecurity"(六保)policies,China'smacroeconomyrecoveredsteadilyandtendedtobebalancedinthefirsthalfof2021.AccordingtotheNationalBureauofStatistics,China'sGDPwasRMB53.2167trillioninthefirsthalfof2021,upby12.7%year-on-yearatcomparableprices.Intermsofquarters,thefirstquarterincreasedby18.3%year-on-year,andthesecondquarterby7.9%.Ontheotherhand,benefitingfromtherecoveryoftheglobaleconomyinthefirsthalfof2021,China'smonthlyimportandexporthaveachievedpositiveyear-on-year
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
growthfor13consecutivemonths,furtherconsolidatingthesteadygrowthofforeigntrade.AccordingtothestatisticspublishedbytheGeneralAdministrationofCustoms,thetotalvalueofChina'simportandexportofgoodstradeinthefirsthalfof2021wasRMB18.07trillion,representinganincreaseof27.1%ascomparedtothatofthecorrespondingperiodin2020,amongwhichtheexportvaluewasRMB9.8493trillion,upby28.1%year-on-year,andtheimportvaluewasRMB8.2157trillion,upby25.9%year-on-year.Withtheexportvalueoffsettingbyimportvalue,thetradesurpluswasRMB1.6336trillion.
(2)MarketenvironmentofportandshippingindustrySince2021,withthewidespreaduseofthevaccinationagainstCOVID-19,pandemicpreventionandcontrolinUnitedStatesandEuropeancountrieshavebeensteadilyimproving,andthedemandforglobaltradeingoodshasrebounded,inceasingthedemandinthemartimetransportmarket.However,whileexportdemandcontinuestoincrease,thebackflowofemptycontainersinEuropeanandAmericanportsisslowduetotheimpactofthepandemic,coupledwiththe"blackswanevents"suchastheSuezCanalblockageandthepandemicinYantianPort,resultinginshipdelay,portcongestion,routeadjustments,etc.fromtimetotime.Thedistributionofcontainersispartiallyunbalanced,andtheeffectiveshippingcapacitycontinuestodecline,andthepriceofshippingintheinternationalmarketcontinuestorise.AccordingtotheDrewryWorldContainerIndex,shippingpriceinthefirsthalfof2021hassetthelargestincreaserecordsince2012,andthefreightratehasincreasedbymorethan300%comparedwiththatofthesameperiodin2020.Duetogradualrecoveryoftheglobaltrade,inthefirsthalfof2021,theoveralloperationsoftheportindustryareingoodcondition,andportthroughputandberthoccupancyratecontinuedtorise.Fromanationalperspective,theglobaldemandandsupplygapinthefirsthalfof2021ledtotheincreaseinChina'sexport.Thecontainerthroughputofmajorportsshowedarapidgrowthtrend.AccordingtothedatapublishedbytheMinistryofTransport,inthefirsthalfof2021,theaccumulatedcargothroughputhandledbytheChineseportsreached7.64334billiontonnes,upby
13.2%year-on-year,andtheaccumulatedcontainerthroughputhandledwas138.18millionTEUs,
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representinganincreaseof15.0%year-on-year,ofwhich,4.96313billiontonnesofcargowerehandledbycoastalports,representingayear-on-yearincreaseof10.3%,andtotally121.98millionTEUswerehandledbycoastalports,representingayear-on-yearincreaseof14.0%.Withregardtoinnovativedevelopment,newopportunitiesintheindustrycontinuetoemerge,andnewoutletssuchasdigitization,carbonneutralization,andnewinfrastructurehavebroughtnewimpetustothetransformationanddevelopmentoftheindustry.
(3)ThepositionoftheCompanyintheindustryTheportindustryisacrucialcornerstoneindustryfornationaleconomicandsocialdevelopment,andiscloselylinkedtoglobaleconomyandtrade.TheCompanyisthelargestportdeveloper,investorandoperatorinthePRCandtheleadingcomprehensiveportserviceproviderintheworld,withawell-developedportnetworkatmajorhublocationsalongcoastalChina.IthasalsosuccessfullyestablishedpresencesinAsia,Africa,Europe,Oceania,SouthAmericaandNorthAmerica.Byitsproactive,soundandefficientoperatingstyle,theCompanycapitalizesonitsglobalportportfolio,professionalmanagementexperience,theself-developedstate-of-the-artterminaloperationsystemandintegratedlogisticsmanagementplatformforexportsandimportstoprovidetimelyandefficientportandmaritimelogisticsservicesalongwithcomprehensiveandmodernintegratedlogisticssolutionstoitscustomers.Inaddition,theCompanyalsoinvestsinbondedlogisticsoperation,launchesintegratedparkdevelopmentbusiness,facilitatesthetransformationandupgradeofportindustry,anddevelopsportsupportingindustries,dedicatedtoimprovingindustryefficiencyandcreatinggreatervaluethroughthesynergiesoftheexistingterminalnetwork.II.Corecompetitivenessanalysis
1.SoundshareholderbackgroundandresourceintegrationabilityEstablishedin1872,whichis149yearsago,CMG,theactualcontrolleroftheCompany,hasbecomeanexemplarymodelforChineseenterprisesanddevelopedstrongbrandpower.Itisalsoakeystate-ownedenterpriseunderthedirectadministrationofthePRCcentralgovernment.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
HeadquarteredinHongKong,CMGisanintegratedenterprisewithdiversifiedbusinessesandoneofthefourmajorChineseenterprisesinHongKong.Currently,itismainlyengagedinthreecoreindustriesnamelycomprehensivetransportation,characteristicfinance,andcomprehensivedevelopmentandoperationofcitiesandparks,andisrealizingthetransformationfromthethreemainbusinessestothethreemajorplatformsofindustrialoperation,financialservices,investmentandcapitaloperation.CMGhasbeenratedasaGradeAenterpriseintheOperatingResultsAssessmentoftheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncilfor17consecutiveyearsandisacentralstate-ownedenterprisethatownstwoFortune500companies.Beingacrucialplayerandfacilitatorofthenational“BeltandRoad”initiative,CMGhasaccelerateditsinternationaldevelopmentandpreliminarilyformedarelativelycompletenetworkofoverseasports,logistics,finance,andparkbusiness.ThesoundshareholderbackgroundandampledomesticandoverseasresourcesintegrationabilityofCMGhaveprovidedstrongsupportforCMPorttoconstructaglobalportinvestmentandoperationplatformwithinternationalvisionandglobalexpansioncapabilitiesandtostandoutinthefierceglobalcompetition.
2.BalancedandestablishedglobalportnetworkpresenceabilityAsanimportantcarrierfordomesticandoverseasportinvestmentandoperationofCMG,theCompanygainedin-depthinsightintothecurrentstates,trendsanddrivingfactorsoftheglobalindustrialchain.Basedontheinsight,itfollowedthedevelopmentpatternsoftheglobaleconomyandtradeandtheindustry,andseizedthesignificantpolicyopportunitiesarisingfromthekey“BeltandRoad”initiativeandthedevelopmentofkeyregionssuchastheGuangdong-HongKong-MacaoGreaterBayAreaandtheintegrationofYangtzeRiverDeltatoactivelybuildaglobalportnetworkandarrangefortheinvestmentandallocationofglobalresources.Inrecentyears,throughmergers,acquisitions,reorganization,renovationofoldports,andconstructionofnewports,theCompanyhasbeenconsistentlyoptimizingitsmodernportnetwork
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withglobalcoverage,enhancingthevalueoftheportindustry,andpushingforwardbalancedregionaldevelopment.Afteryearsofoverseasdevelopment,CMPorthasestablishedglobalbusinesspresence.Itsportnetworkcomprises50portswhicharelocatedin26countriesandregionsonsixcontinents.Adheringtotheprincipleof“extensiveconsultation,jointdevelopmentandsharedbenefits”,CMPorthasdevelopedlocal-basedbusinessoperationandformedacommunityofsharedfuturewithstakeholdersfromcountriesandregionsalongthe“BeltandRoad”initiativetoexploredevelopmentopportunitieswithconcertedefforts.Atthesametime,thediversifiedinvestmentandoperationofportassetsathomeandabroadhavealsoeffectivelyenhanceditscapabilitiesofresistingrisksofindustryfluctuations,tradefictionsandunexpectedevents.
3.ContinuouslyoptimizingsupplychaincomprehensiveserviceabilityTheCompanyiscommittedtobecomingaworld-classcomprehensiveportserviceproviderandcentersonmanyaspectstocontinuetooptimizethecomprehensiveservicecapabilitiesofthesupplychain.Thefirstaspectistheadvancedcomprehensivedevelopmentcapabilities.Takingportbusinessasthecoreandleveragingthesynergyofdifferentportzonesaswellascityindustryintegration,theCompanyisactivelyexploringandfacilitatingthecomprehensiveportdevelopmentmodelof“Port-Park-City”.Basedonthetraditionalloadinganddischargingandancillaryservicesatports,itestablishedthecomprehensivedevelopmentmodelthatofferedhighvalue-addedservicestoenterprises.Currently,theCompanyhasparticipatedinpromotingtheport-orientedregionalcomprehensivedevelopmentandconstructioninvariousoverseasregionsandhasachievedphasedprogresses,fosteringnewprofitgrowthpointsfortheCompany.Thesecondaspectissoundcomprehensivelogisticsservicecapabilities.TheCompanyaimsatincreasingitsglobalpresencewithshippingroutesacrossfivecontinents.Asboththeshippingandportsectorsgraduallyshiftedtoformingalliances,theCompanyisactivelyintegratingitsdomesticandoverseassupplychainresourcesandcenteringoncustomerneedstoprovidemorecomprehensiveandeffectiveintegratedlogisticsservicesolutionsfortheglobalsupplychain,formingitsuniquecompetitivestrength.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
BasedontheWestShenzhenhomebaseportandtheShundeNewPort,itbuiltthefirstcomplexportintheGreaterBayAreatomeettheunsatisfiedcustomerneeds,promotingthedevelopmentoftheGuangdong-HongKong-MacaoGreaterBayArea.TheCompanyalsosecuredtheinternationalsupplychainandsupplyforpeople’slivelihoodinthecountrythroughservingdomesticandforeigntradebusiness,therebyacceleratingtheformationofChina’snewdevelopmentpattern,thedomesticeconomiccycleasthemainstayandthedomesticandinternationaleconomiccyclesboostingeachother.
4.IndependentandinnovativesmartportconstructionabilityGraspingthedevelopmentopportunitiesofthenewtechnologywave,theCompanyproactivelypushedforwardtheconstructionofsmartportsandpromotedthedigitaltransformationandintelligentupgradeofportsthrough“CMChip”and“CMePort”.“CMChip”isacoreportoperatingsystemindependentlydevelopedandbuiltbytheCompany,includingCTOS(ContainerTerminalOperationSystem),BTOS(BulkCargoTerminalOperationSystem),andLPOS(LogisticsParkOperationSystem).Atpresent,the“CMChip”seriesofproductsindependentlydevelopedbytheCompanyhavebeenbasicallyappliedtodomesticandoverseasterminalscontrolledbytheCompany,layingasolidfoundationfortheCompany'ssmartportconstruction.“CMePort”isadigitalintegratedserviceecologicalplatformbasedontheCompany'sglobalportnetworkandtargetedattheportlogisticsindustry,integratingports,shipping,logisticsandthird-partye-commerceplatformsandprovidingsmartlogistics,smartportsandsmartfinanceandbusinessservicestohelpbuildasmartportecosystem.TheCompanytookthetransformationprojectofHaixingHarborasapilot,andsuccessfullybuilt"MawanSmartPort"bycenteringon9smartelementssuchas“CMChip”,“CMePort”,automationtechnology,smartport,5Gnetworkapplication,blockchain,Beidousystem,artificialintelligenceapplication,andgreenandlow-carbondevelopment,and"MawanSmartPort"hasbecomeChina'sfirstautomatedterminalupgradedfromatraditionalterminal,formingacomprehensivesolutionforsmartportswith"CMPort’scharacteristics".
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
5.SoundandefficientportmanagementabilityAdheringtotheproactive,soundandefficientoperatingstyleandbenefitingfromitsglobalportassetsandresourcesportfolio,theCompanyiscommittedtoprovidingcustomerswithtimelyandefficientportandmaritimelogisticsservicesaswellasprofessionalandfirst-classsolutions,andhasbecomethepreferredpartnerforcustomersandanimportantgatewayforthecountry’sforeigntrade,therebymakingduecontributionstothecountry’sforeigntradedevelopment.Atthesametime,theCompanyalsomadeanextensiveinvestmentinbondedlogisticsbusinesstoexpanditsportvaluechainandenhanceindustrialvalue.Takingadvantagesofthesynergyofitsexistingterminalnetwork,theCompanycreatedvaluesforbothitscustomersandshareholders.TheCompanyhasearneditselfgoodreputationacrosstheindustrybyitsprofessionalmanagementexperienceaccumulatedforyears,itsself-developedgloballeadingterminaloperatingsystemandintegratedlogisticsmanagementplatformforimportandexport,itsextensivemaritimelogisticssupportsystemwithall-roundedmodernintegratedlogisticssolutions,anditshigh-qualityengineeringmanagementandreliableserviceofferings.III.CoreBusinessAnalysis
1.PortBusinessReview
(1)OverviewofportbusinessInthefirsthalfof2021,theCompany’sportshandledatotalcontainerthroughputof67.23millionTEUs,upby21.1%year-on-year.BulkcargovolumehandledbytheCompany’sportsincreasedby
40.2%year-on-yearto308milliontonnes.Withrespecttocontainerbusiness,thecontainerthroughputhandledbytheGroup’sportsinMainlandChinareached46.83millionTEUs,upby
17.5%year-on-year,whichismainlyduetostabledomesticpandemicsituationandeconomicrecovery.ThetotalcontainerthroughputhandledbytheGroup’sportsinHongKongandTaiwanreached3.77millionTEUs,upby10.6%year-on-year.TheGroup’soverseasportshandledatotalcontainerthroughputof16.63millionTEUs,representinganincreaseof35.8%year-on-year,which
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
wasmainlybenefitedfromtheinclusionoftheeightterminalsnewlyacquiredbyTLinthestatistics.Withrespecttobulkcargobusiness,totalbulkcargovolumehandledbytheGroup’sportsinMainlandChinaincreasedby40.6%year-on-yearto305milliontonnes,whichismainlyduetotheinclusionofYingkouPortbusinessinthestatisticsbytheCompanysinceFebruaryandtheoverallstrongreboundofthebulkcargobusiness.
Table3-1ThroughputoftheCompanyandchangesinthefirsthalfof2021
| Item | Thefirsthalfof2021 | Thefirsthalfof2020 | Changes |
| Containerthroughput(’0,000TEU) | 6,723 | 5,550 | 21.1% |
| Amongwhich:MainlandChina | 4,683 | 3,984 | 17.5% |
| HongKongandTaiwan | 377 | 341 | 10.6% |
| Overseas | 1,663 | 1,225 | 35.8% |
| Bulkcargothroughput(hundredmilliontonnes) | 3.08 | 2.20 | 40.2% |
| Amongwhich:MainlandChina | 3.05 | 2.17 | 40.6% |
| Overseas | 0.03 | 0.03 | 0% |
Note:1.Thestatisticsrepresentedthetotalthroughputoftheholdingsubsidiaries,associatesandjointventuresoftheCompany;2.DuetothemergerbyabsorptionthroughshareswapbetweenDalianPort(PDA)CompanyLimited,ajointstockcompanyoftheCompany,andYingkouPortLiabilityCo.,Ltd.(YingkouPort),whichwereconsolidatedasLiaoningPortCo.,Ltd.,theCompanyhasincludedYingkouPortbusinessinthestatisticssinceFebruary2021.
(2)Operationconditionofportbusinessbyregion
Table3-2ContainerthroughputoftheCompanyandchangesinthefirsthalfof2021(in’0,000TEU)
| Regionandportcompany | Thefirsthalfof2021 | Thefirsthalfof2020 | Changes | ||
| PearlRiverDelta | Holdingcompany | WestShenzhenPortZone | 650 | 517 | 25.7% |
| ShundeNewPort | 22 | 18 | 22.2% | ||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| Jointstockcompany | ChuKongRiverTradeTerminal | 55 | 48 | 14.6% | |
| YangtzeRiverDelta | Jointstockcompany | SIPGGroup | 2,294 | 2,006 | 14.4% |
| Holdingcompany | NingboDaxie | 170 | 148 | 14.9% | |
| BohaiRim | Jointstockcompany | TianjinPortContainerTerminal | 447 | 367 | 21.8% |
| QQCTU | 418 | 381 | 9.7% | ||
| LiaoningPortCo.,Ltd. | 465 | 360 | 29.2% | ||
| South-EastregionofMainlandChina | Holdingcompany | ZhangzhouPort | 12 | 16 | -25.0% |
| ShantouPort | 92 | 62 | 48.4% | ||
| South-WestregionofMainlandChina | Holdingcompany | ZhanjiangPort | 58 | 61 | -4.9% |
| HongKongandTaiwan | Holdingcompany/Jointstockcompany | CMCS/ModernTerminals | 282 | 263 | 7.2% |
| Jointstockcompany | TaiwanKaoMingContainer | 95 | 78 | 21.8% | |
| Overseas | Holdingcompany | CICT | 150 | 138 | 8.7% |
| TCP | 54 | 48 | 12.5% | ||
| LCT | 73 | 61 | 19.7% | ||
| Jointstockcompany | TL | 1,274 | 860 | 48.1% | |
| Kumport | 62 | 60 | 3.3% | ||
| PDSA | 35 | 42 | -16.7% | ||
| TICT | 15 | 16 | -6.3% | ||
| Total | 6,723 | 5,550 | 21.1% | ||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
Note:1.TheCompanyhasincludedthebusinessvolumeofeightterminalsnewlyacquiredbythejointstockcompanyTerminalLinkinthestatisticssinceApril2020;2.DuetothemergerbyabsorptionthroughshareswapbetweenDalianPort(PDA)CompanyLimited,ajointstockcompanyoftheCompany,andYingkouPortLiabilityCo.,Ltd.(YingkouPort),whichwereconsolidatedasLiaoningPortCo.,Ltd.,theCompanyhasincludedYingkouPortbusinessinthestatisticssinceFebruary2021.
Table3-3BulkcargovolumehandledbytheCompanyandchangesinthefirsthalfof2021
(in’0,000tonnes)
| Regionandportcompany | Thefirsthalfof2021 | Thefirsthalfof2020 | Changes | ||
| PearlRiverDelta | Holdingcompany | WestShenzhenPortZone | 819 | 746 | 9.8% |
| DongguanMachong | 789 | 770 | 2.5% | ||
| ShundeNewPort | 260 | 154 | 68.8% | ||
| Jointstockcompany | ChuKongRiverTradeTerminal | 142 | 121 | 17.4% | |
| YangtzeRiverDelta | Jointstockcompany | SIPGGroup | 4,464 | 3,473 | 28.5% |
| BohaiRim | Jointstockcompany | QQTU | 916 | 788 | 16.2% |
| QingdaoPortDongjiakou | 3,373 | 3,038 | 11.0% | ||
| LiaoningPortCo.,Ltd. | 12,973 | 6,794 | 90.9% | ||
| LaizhouPort | 1,244 | 978 | 27.2% | ||
| South-EastregionofMainlandChina | Holdingcompany | ZhangzhouPort | 431 | 252 | 71.0% |
| XiaMenPort | 239 | 10 | 2,290.0% | ||
| ShantouPort | 162 | 160 | 1.3% | ||
| South-WestregionofMainlandChina | Holdingcompany | ZhanjiangPort | 4,700 | 4,425 | 6.2% |
| Overseas | Holdingcompany | HIPG | 79 | 18 | 338.9% |
| Jointstockcompany | Kumport | 8 | 2 | 300.0% | |
| PDSA | 260 | 285 | -8.8% | ||
| Total | 30,859 | 22,014 | 40.2% | ||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
Note:1.HIPGhasincludedliquidbulkcargointhestatisticsofitsbusinessvolumesince2020;
2.DuetothemergerbyabsorptionthroughshareswapbetweenDalianPort(PDA)CompanyLimited,ajointstockcompanyoftheCompanyandYingkouPortLiabilityCo.,Ltd.(YingkouPort),whichwereconsolidatedasLiaoningPortCo.,Ltd.,theCompanyhasincludedYingkouPortbusinessinthestatisticssinceFebruary2021.PearlRiverDeltaregionTheGroup’sterminalsintheWestShenzhenPortZonehandledacontainerthroughputof6.50millionTEUs,upby25.7%year-on-year,whichwasmainlybenefitedfromthenewroutesinAsiaandNorthAmerica,andtheactiveeffortstoserveovertimevessels.TheGroup’sterminalsintheWestShenzhenPortZonehandledabulkcargovolumeof8.19milliontonnes,upby9.8%year-on-year,whichwasmainlyduetothesignificantincreaseinforeigntradefeedgrainbusinessvolume.GuangdongYidePortLimited(ShundeNewPort)handledacontainerthroughputof0.22millionTEUs,upby22.2%year-on-year,whichwasmainlybenefitedfromincreaseinordersfromlocalexportenterprisesandincreaseinforeigntradevolumeyear-on-year;andhandledabulkcargovolumeof2.60milliontonnes,upby68.8%year-on-year,whichwasmainlybenefitedfromthemajorcustomersstrategyandcontinuouslyoptimizationinthestructureofcustomersandcargotypes.YangtzeRiverDeltaregionBenefitingfromthegrowthofimportandexporttradedrivenbythesteadyrecoveryoftheglobaleconomy,SIPGhandledacontainerthroughputof22.94millionTEUs,upby14.4%year-on-year,andbulkcargovolumehandledincreasedby28.5%year-on-yearto44.64milliontonnes.NingboDaxiehandledacontainerthroughputof1.70millionTEUs,representinganincreaseof14.9%year-on-year,whichwasmainlybenefitedfromthesixnewroutesandtheactiveeffortstoserveovertimevessels,resultinginanincreaseincontainervolumeofdomesticandforeigntrade.BohaiRimregionQQCTUhandledacontainerthroughputof4.18millionTEUs,representinganincreaseof9.7%
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
year-on-year,whichwasmainlybenefitedfromanincreaseinforeigntradetransshipmentandcontainervolumeofdomestictrade.QQTUhandledabulkcargovolumeof9.16milliontonnes,representinganincreaseof16.2%year-on-year,whichwasmainlyattributabletoreinforcingcooperationwithkeycustomersandtheincreaseinmajorcargotypessuchaspulp.Thankstotheincreaseddemandfortheironoreintheregion,QingdaoDongjiakouhandledabulkcargovolumeof33.73milliontonnes,indicatinganincreaseof11.0%year-on-year.Benefitedfromvigorouslyexpandingthemarketandimprovingtheregionalcompetitionenvironment,LaizhouPorthandledabulkcargovolumeof12.44milliontonnes,representingayear-on-yearincreaseof27.2%.DuetothemergerbyabsorptionthroughshareswapbetweenDalianPort,ajointstockcompanyoftheCompany,andYingkouPort,whichwereconsolidatedasLiaoningPortCo.,Ltd.,theCompanyhasincludedYingkouPortbusinessinthestatisticssinceFebruary2021.Therefore,LiaoningPortCo.,Ltd.handledacontainerthroughputof4.65millionTEUs,representinganincreaseof29.2%year-on-yearascomparedtothatbeforethemerger,andhandledabulkcargovolumeof129.73milliontonnes,representinganincreaseof90.9%year-on-yearascomparedtothatbeforethemerger.TianjinPortContainerTerminalCo.,Ltd.contributedacontainerthroughputof4.47millionTEUs,representinganincreaseof21.8%year-on-year,whichwasmainlyattributabletotheincreaseindomestictradethroughputbroughtbydeepeningcooperationwithmajorcustomers.South-EastregionofMainlandChinaZhangzhouPorthandledabulkcargovolumeof4.31milliontonnes,increasedby71.0%year-on-year,whichwasmainlyduetothehigherclientdemandinthehinterland,leadingtoanincreaseinimportcargoes.XiaMenPorthandledabulkcargovolumeof2.39milliontonnes,upbynearly23timesyear-on-year,whichwasmainlybenefitedfromthegrowthindomestictradebusinessofsandstonedrivenbytheincreasedclientdemand.ShantouPorthandledacontainerthroughputof
0.92millionTEUs,upby48.4%year-on-year,mainlyduetothedevelopmentofdomesticandforeigntraderoutes,andabulkcargovolumeof1.62milliontonnes,upby1.3%year-on-year.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
South-WestregionofMainlandChinaZhanjiangPorthandledacontainerthroughputof0.58millionTEUs,downby4.9%year-on-year,mainlyduetothedecreaseinthevolumeofdomesticcontainersaffectedbythereductionofshippingroutes.Italsohandledabulkcargovolumeof47.00milliontonnes,upby6.2%year-on-year,whichwasmainlybenefitedfromtheimprovementofthemarketenvironmentandactivelyexpandingintonewmarketsonthebasisofconsolidatingexistingcustomers.HongKongandTaiwanregionsCMCSandModernTerminalsinHongKongdeliveredanaggregatecontainerthroughputof2.82millionTEUs,upby7.2%year-on-year.TaiwanKaoMingContainerinKaohsiung,Taiwanhandledatotalcontainerthroughputof0.95millionTEUs,representinganincreaseof21.8%year-on-year.ThisismainlybecauseportsintheUnitedStatesandEuropeancountriessufferedfromportcongestionduetothepandemic,withsomecargoesloadedandunloadedinKaoMingTerminalinadvance.OverseasoperationCICTinSriLankahandledacontainerthroughputof1.50millionTEUs,upby8.7%year-on-year,whichwasmainlybenefitedfromtheincreaseintransshipmentcontainervolume.HIPGhandledabulkcargovolumeof0.79milliontonnes,increasedby338.9%year-on-year,whichwasmainlyduetothecontinuationofgrowthinthecementbusinessvolumestartingfromthesecondhalfoflastyear,anditsROROterminalhandled0.281millionvehicles,upby56.2%year-on-year,mainlyattributabletothegrowthintransshipmentbusiness.ContainerthroughputhandledbyLCTinTogoincreasedby19.7%year-on-yearto0.73millionTEUs,mainlyattributabletothestablegrowthincontainervolumefrommajorcustomers.TLhandledacontainerthroughputof12.74millionTEUs,upby48.1%year-on-year,mainlybenefitedfromtheinclusionofbusinessvolumeoftheeightterminalsnewlyacquiredbyTLinthestatisticsinApril2020andtheoutstandingperformanceofitsportslocatedinEuropeanarea.Benefitedfromtheincreaseinlocalimportcontainervolume
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
drivenbytheresumptionofworkandproductionbytheenterprisesinBrazilinthefirsthalfoftheyear,TCPinBrazilhandledacontainerthroughputof0.54millionTEUs,upby12.5%year-on-year.
2.ImplementationofbusinessplanduringtheReportingPeriodDuringtheReportingPeriod,TheCompanyactivelygraspedthecontinuousupwardtrendofthecontainershippingmarket,consistentlyadheredtothebusinessstrategyof“givingdueconsiderationandimportancetobothpandemicpreventionandcontrolandresumptionofworkandproduction”,continuedtostrengthenoperationsandmanagement,andleveragedtheCompany'sglobalportnetworklayouttoprovidestrongsupportforsmoothingdomesticandforeigntradetransportationchannels.Variousbusinesseshaveachievedrapidgrowthandkeyprojectshavemadesignificantprogressandfruitfulresults.
(1)Significantgrowthinbusinessvolume.Inthefirsthalfof2021,theCompany’sportshandledatotalcontainerthroughputof67.23millionTEUs,upby21.1%year-on-year,andabulkcargovolumeof308milliontonnes,upby40.2%year-on-year.TheCompany'sbusinessvolumehasachievedsubstantialgrowth,anditsperformancewasbetterthantheoveralldomesticlevels.Amongthem,terminalsintheWestShenzhenPortZonecontrolledbytheCompanyhandledacontainerthroughputof6.50millionTEUs,upby25.7%year-on-year,higherthantheoverallgrowthrateofportsinShenzhen,anditsmarketshareincreasedfrom46.7%to47.2%,representinganincreaseof0.5percentagepoint.
(2)Givingdueconsiderationandimportancetobothpandemicpreventionandcontrolandresumptionofworkandproduction.TheCompanyhasalwayshighlyconcernedwithpandemicpreventionandcontrolandemphasizedthatitisimportantto“attachgreatattention,highstandards,efficientimplementation,makeconstantefforts,consistentpreparation,enhancepandemicpreventionplans,optimisepandemicpreventionprocesses,refinepandemicpreventionmeasures,ensurecomplianceandmakesureeverythingisinorder”inrespectofpandemicpreventionandcontrol.ThepandemicinYantianPortinMay2021disturbedthestabilityoftheSouthChina
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
regionalsupplychain.ShekouPort,ChiwanPortandMawanPortareasoftheCompany'sWestShenzhenhomebaseportstrengthenedtheoverallcoordinationofproductionandoperationandensurednormalportoperationswhilehandlingthepandemicpreventionandcontrolproperly,playinganimportantroleinguaranteeingthelogisticssupplychainintheSouthChinaregion.Theseeffortsnotonlydemonstrateitsresponsibilityasacentralstate-ownedenterprise,butalsoreflecttheadvantagesofitsstrongoperationandmanagementability.
(3)MawanSmartPortputtingintooperation.MawanSmartPortundertheCompanywasofficiallyputintooperationinlateJune2021,withtheharbourareaof983,600sq.m.,theberthscoastlineof1,930metres,and5berthsintotal,includingtwonewly-built200,000-tonclassspecializedcontainerdockberthswhicharethelargestinSouthChina.Thementionedberthsareabletomoortheworld’slargestcontainervessels,withadesignedannualcargohandlingcapacityof3millionTEUs.AsthenumberoneprojectintheCompany'ssmartterminalconstruction,MawanSmartPort,incorporatingninemajorintelligentelements,namely“CMChip”,“CMePort”,artificialintelligence,5Gnetworkapplication,Beidousystem,automation,intelligentports,blockchain,andgreenandlow-carbondevelopment,isamodelforintelligentisationupgradeoftraditionalterminalsathomeandabroad.Ascomparedwiththetraditionalports,MawanSmartPorthassignificantlyincreaseditsoperationefficiency.Itsoperationalpersonneldecreasedby80%;comprehensiveoperationalefficiencyincreasedby30%;potentialsafetyhazardsdecreasedby50%;carbonemissionsreducedby90%,andtheimportandexportclearanceefficiencyincreasedover30%.Meanwhile,thereconstructionplanreducedtheconstructioncostby50%comparedwiththatcostofanewly-builtfullyautomaticterminal,achievingconsiderableeconomicbenefits.MawanSmartPortisexpectedtohaveapositiveimpactonstabilizingthelogisticssupplychaininSouthChina,andwillfurtherenhancethecompetitivenessandinfluenceoftheWestShenzhenhomebaseportintheregionalmarket,therebyacceleratingtheconstructionof“aworld-classleadingport”.
(4)Anewstageformarketexpansion.RelyingonthesubstantialimprovementofobjectiveconditionssuchasthecommissioningofthenewberthatMawanSmartPortandtheall-weather
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
navigationofthe200,000-tonwaterway,theCompanystrengtheneditsmarketingandbusinesspromotionfortheWestShenzhenPortZone.Inthefirsthalfof2021,itaddedanumberofnewroutessuchasNorthAmericaline,AsialineandIndialine,furtherstrengtheneditsin-depthcooperationwithCMACGM(達飛輪船)andMediterraneanShipping(地中海航運),andputmoreeffortstomaintaintheexistingroutesandexpandnewroutes,andthemarketshareinSouthChinahasincreasedaccordingly.Inaddition,theCompanyacceleratedtheconstructionofthecoordinatedportsintheGuangdong-HongKong-MacaoGreaterBayAreaandofficiallylaunchedthe“ShenzhenShekou-ShundeBeijiaoCombinedPort(深圳蛇口-順德北滘組合港)”projectinthefirsthalfoftheyear,furtherexpandingthecoordinatedportsites.
(5)Comprehensivedevelopment.TheCompanyactivelyexploresandpromotescomprehensivedevelopmentbusiness,takingDjiboutiandHIPGasoverseaspilotstopromotethecomprehensivedevelopmentmodelof"Port-Park-City".Inthefirsthalfof2021,despitetheadverseimpactofthecontinuousspreadoftheglobalpandemic,thebusinessandinvestmentsolicitationinoverseasparksprogressedsteadily.ThenumberofcontractedenterprisesintheHIPGIndustrialParkreached27,andthenumberofcontractedenterprisesintheDjiboutiFreeTradeZonereached162.Comprehensivedevelopmentbusinesshasmadegoodprogress.
.Year-on-yearChangesinKeyFinancialData
Unit:RMB
| H12021 | H12020 | Change(%) | Mainreasonforchange | |
| Operatingrevenue | 7,339,942,862.26 | 5,962,497,716.96 | 23.10% | - |
| Operatingcosts | 4,198,451,164.27 | 3,743,190,504.14 | 12.16% | - |
| Administrativeexpense | 766,369,973.37 | 745,721,965.45 | 2.77% | - |
| Financecosts | 730,109,013.88 | 841,408,636.18 | -13.23% | - |
| Incometaxexpense | 643,438,595.12 | 513,167,463.70 | 25.39% | - |
| R&Dinvestments | 98,344,411.25 | 71,988,081.92 | 36.61% | Newadditiontotheconsolidationscope |
| Netcashgeneratedfrom/usedinoperatingactivities | 2,934,960,407.96 | 2,057,741,203.08 | 42.63% | Increaseinbusinessvolume |
| Netcashgeneratedfrom/usedininvestingactivities | 53,828,332.73 | -7,869,699,226.91 | 100.68% | PaymentfortheTranche1ofmandatoryconvertiblebondsofTL,PaymentfortheTranche1loanofTLandinvestmentinChinaMerchantsNortheastAsia |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| DevelopmentandInvestmentCo.,Ltd.inthesameperiodoflastyear,withnocomparablepaymentinthecurrentperiod | ||||
| Netcashgeneratedfrom/usedinfinancingactivities | -5,513,332,001.73 | 5,356,254,138.54 | -202.93% | Increaseinrepaymentofdueloans |
| Netincreaseincashandcashequivalents | -2,551,095,256.98 | -487,601,731.66 | -423.46% | Increaseinnetcashusedinfinancingactivities |
SignificantchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable√NotapplicableNosuchchangesintheReportingPeriod.Breakdownofoperatingrevenue:
Unit:RMB
| H12021 | H12020 | Change(%) | |||
| Operatingrevenue | As%oftotaloperatingrevenue(%) | Operatingrevenue | As%oftotaloperatingrevenue(%) | ||
| Total | 7,339,942,862.26 | 100% | 5,962,497,716.96 | 100% | 23.10% |
| Byoperatingdivision | |||||
| Portoperations | 7,048,459,976.64 | 96.03% | 5,698,802,943.83 | 95.58% | 23.68% |
| Bondedlogisticsservice | 204,996,959.89 | 2.79% | 191,942,345.76 | 3.22% | 6.80% |
| Propertydevelopmentandinvestment | 86,485,925.73 | 1.18% | 71,752,427.37 | 1.20% | 20.53% |
| Byoperatingsegment | |||||
| MainlandChina,HongKongandTaiwan | 5,552,294,281.37 | 75.64% | 4,255,086,509.16 | 71.36% | 30.49% |
| Othercountriesandregions | 1,787,648,580.89 | 24.36% | 1,707,411,207.80 | 28.64% | 4.70% |
Operatingdivision,productcategoryoroperatingsegmentcontributingover10%ofoperatingrevenueoroperatingprofit:
Unit:RMB
| Operatingrevenue | Costofsales | Grossprofitmargin | YoYchangeinoperatingrevenue(%) | YoYchangeincostofsales(%) | YoYchangeingrossprofitmargin(%) | |
| Byoperatingdivision | ||||||
| Portoperations | 7,048,459,976.64 | 3,968,490,374.19 | 43.70% | 23.68% | 12.85% | 5.40% |
| Byoperatingsegment | ||||||
| MainlandChina,HongKongandTaiwan | 5,552,294,281.37 | 3,359,615,909.40 | 39.49% | 30.49% | 16.86% | 7.05% |
| Othercountriesandregions | 1,787,648,580.89 | 838,835,254.87 | 53.08% | 4.70% | -3.40% | 3.94% |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
CorebusinessdatarestatedaccordingtothechangedmethodsofmeasurementthatoccurredintheReportingPeriod:
□Applicable√NotapplicableAnyover30%YoYmovementsinthedataaboveandwhy:
OperatingrevenueinMainlandChina,HongKongandTaiwanincreased30.49%year-on-year,whichwasmainlybenefitedfromthecontinuedimprovementofthecontainershippingmarket.TheCompany'sWestShenzhenPortZoneandotherterminalprojectsachievedsubstantialgrowthincontainerthroughput.IVAnalysisofNon-CoreBusinesses
Unit:RMB
| Amount | As%ofprofitbeforetax | Source/Reason | Recurrentornot | |
| Returnoninvestment | 3,609,743,591.59 | 73.55% | Shareofprofitsofjointventuresandassociates,mainlyshareofthenetprofitofSIPG | Yes |
| Gain/lossonchangesinfairvalue | -488,532,866.45 | -9.95% | Lossonchangesinthefairvalueofheld-for-tradingfinancialliabilities | No |
| Otherincome | 305,982,258.62 | 6.23% | Governmentgrantsreceived | No |
VAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
| 30June2021 | 31December2020 | Changeinpercentage(%) | Reasonforanysignificantchange | |||
| Amount | As%oftotalassets | Amount | As%oftotalassets | |||
| Accountsreceivable | 1,853,240,938.06 | 1.10% | 1,393,349,417.02 | 0.83% | 0.27% | Increaseinrevenue |
| Long-termequityinvestments | 67,429,276,231.95 | 39.97% | 66,242,411,222.90 | 39.26% | 0.71% | NewinvestmentinNingboPort,andrecognitionofinvestmentincomefromassociatesandjointventures |
| Fixedassets | 30,664,411,611.93 | 18.18% | 29,479,755,159.21 | 17.47% | 0.71% | TransferoftheHaixingintelligentharborprojecttofixedassets |
| Constructioninprogress | 4,082,810,291.73 | 2.42% | 5,381,430,606.18 | 3.19% | -0.77% | TransferoftheHaixingintelligentharborprojecttofixedassets |
| Otherreceivables | 4,580,706,082.69 | 2.72% | 3,561,292,313.98 | 2.11% | 0.61% | Increaseindividendsreceivablefromassociatesandjointventures |
| Othercurrent | 821,942,182.54 | 0.49% | 434,074,085.16 | 0.26% | 0.23% | Increaseinstructured |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| assets | deposits | |||||
| Short-termborrowings | 4,918,709,603.87 | 2.92% | 10,483,775,548.93 | 6.21% | -3.29% | Repaymentofshort-termborrowingsuponmaturity |
| Otherpayables | 3,866,179,811.31 | 2.29% | 2,481,217,568.40 | 1.47% | 0.82% | Increaseindividendspayabletoordinaryshareholders |
| Non-currentliabilitiesduewithinoneyear | 8,743,691,405.73 | 5.18% | 3,564,587,701.07 | 2.11% | 3.07% | Increaseincorporatebondsduewithinoneyear |
| Bondspayable | 17,283,407,358.74 | 10.24% | 21,090,545,845.56 | 12.50% | -2.26% | Increaseincorporatebondsduewithinoneyear,whichwerepresentedinnon-currentliabilitiesduewithinoneyear |
2.MajorAssetsOverseas
| Asset | Source | Assetvalue(RMB’0,000) | Location | Operations | Controlmeasurestoprotectassetsafety | Returngenerated(RMB’0,000) | As%oftheCompany’snetassetvalue | Materialimpairmentrisk(yes/no) |
| Equityassets | Acquiredviashareoffering | 14,004,192.38 | HongKong | Portinvestmentandoperations | Appointingdirector,supervisorandseniormanagement/Accordingtothepolitical,economicandlegalenvironmentofdifferentcountriesandregions,establishatargetedinternalcontrolsystemandearlywarningsystem. | 392,407.96 | 87.92% | No |
| Otherinformation | N/A | |||||||
3.AssetsandLiabilitiesatFairValue
Unit:RMB
| Item | Beginningamount | Gain/lossonfair-valuechangesintheReportingPeriod | Cumulativefair-valuechangesthroughequity | ImpairmentallowancemadeintheReportingPeriod | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Otherchanges | Endingamount |
| Financialassets | ||||||||
| Held-for-tradingfinancialassets(exclusiveofderivative | 850,165,448.59 | 7,839.21 | - | - | 3,580,000,000.00 | 3,430,000,000.00 | - | 1,000,173,287.80 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| financialassets) | ||||||||
| Othernon-currentfinancialassets | 910,807,452.56 | -45,536,366.63 | - | - | - | - | -1,362,000.24 | 863,909,085.69 |
| Investmentsinotherequityinstruments | 181,467,057.74 | - | 412,500.00 | - | - | - | 137,500.00 | 182,017,057.74 |
| Receivablesfinancing | 217,449,966.41 | - | - | - | - | - | 55,439,353.42 | 272,889,319.83 |
| Subtotaloffinancialassets | 2,159,889,925.30 | -45,528,527.42 | 412,500.00 | - | 3,580,000,000.00 | 3,430,000,000.00 | 54,214,853.18 | 2,318,988,751.06 |
| Financialliabilities | 2,888,395,641.53 | -443,004,339.03 | - | - | - | - | 106,758,878.13 | 3,438,158,858.69 |
SignificantchangestothemeasurementattributesofthemajorassetsintheReportingPeriod:
□Yes√No
4.RestrictedAssetRightsasatthePeriod-EndRestrictedmonetaryassetsweresecuritydepositsofRMB12,259,378.15.ThecarryingamountoffixedassetsasbankloanmortgageswasRMB341,262,588.64.ThecarryingamountofconstructioninprogressasbankloanmortgageswasRMB39,017,486.19.ThecarryingamountofintangibleassetsasbankloanmortgageswasRMB215,521,701.84.ThecarryingamountofequitiesandinterestsasbankloanmortgageswasRMB2,658,231,361.27.VIInvestmentsMade
1.TotalInvestmentAmount
| TotalinvestmentamountintheReportingPeriod(RMB) | Totalinvestmentamountinthesameperiodoflastyear(RMB) | Change(%) |
| 1,331,950,431.45 | 5,230,130,246.69 | -74.53% |
2.MajorEquityInvestmentsMadeintheReportingPeriod
□Applicable√Notapplicable
3.MajorNon-EquityInvestmentsOngoingintheReportingPeriod
Unit:RMB
| Item | Way | Fixedassets | Industryinvolved | InputamountintheReportingPeriod | Accumulativeactualinputamountasof | Capitalresource | Progress | Estimated | Accumulative | Reasonfornot |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| ofinvestment | investmentornot | theperiod-end | s | returnoninvestment | realizedrevenuesasoftheperiod-end | reachingthescheduleandanticipatedincome | ||||
| HaixingHarbor1#-4#berthsrenovationproject—waterengineering | Self-built | Yes | Supportactivitiesforwatertransportation | 475,615,870.23 | 2,019,842,686.83 | Self-fundedandloan-funded | 87.11% | 0.00 | 0.00 | N/A |
| HIPGcontainerandoilterminalsandtankzonerenovationproject | Self-built | Yes | Supportactivitiesforwatertransportation | 1,671,680.20 | 1,552,112,017.05 | Self-fundedandloan-funded | 56.19% | 0.00 | 0.00 | N/A |
| MachongPort2#and3#berthsandbulkgrainwarehousephaseIIIproject | Self-built | Yes | Supportactivitiesforwatertransportation | 20,596,884.33 | 507,647,601.58 | Self-fundedandloan-funded | 81.88% | 0.00 | 0.00 | N/A |
| ZhanjiangPortXiashanPortGeneralWharf | Self-built | Yes | Supportactivitiesforwatertransportation | 13,731,990.53 | 478,370,995.63 | Self-fundedandloan-funded | 64.84% | 0.00 | 0.00 | N/A |
| GeneralCargoprojectofZhanjiangPortDonghaiIsland | Self-built | Yes | Supportactivitiesforwatertransportation | 6,108,117.16 | 372,691,510.47 | Self-fundedandloan-funded | 41.17% | 0.00 | 0.00 | N/A |
| Total | -- | -- | -- | 517,724,542.45 | 4,930,664,811.56 | -- | -- | 0.00 | 0.00 | -- |
4.FinancialInvestments
(1)SecuritiesInvestments
Unit:RMB
| Varietyofsecurity | Codeofsecurity | Nameofsecurity | Initialinvestmentcost | Accountingmeasurementmethod | Beginningcarryingamount | Gain/lossonfairvaluechangesintheReportingPeriod | Accumulatedfairvaluechangesrecordedinequity | PurchasedintheReportingPeriod | SoldintheReportingPeriod | Gain/lossintheReportingPeriod | Endingcarryingamount | Accountingtitle | Fundingsource |
| Stock | 6198 | QingdaoPort | 124,405,138.80 | Fairvaluemethod | 166,225,139.77 | -17,536,366.63 | - | - | - | 10,822,001.31 | 147,326,772.90 | Held-for-tradingfinancialassets | Self-funded |
| Stock | 601298 | QingdaoPort | 331,404,250.30 | Fairvaluemethod | 720,160,000.00 | -28,000,000.00 | - | - | - | 29,366,400.00 | 692,160,000.00 | Held-for-tradingfinancialassets | Self-funded |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| Stock | 600377 | JiangsuExpressway | 1,120,000.00 | Fairvaluemethod | 10,786,800.00 | - | 412,500.00 | - | - | 460,000.00 | 11,336,800.00 | Investmentinotherequityinstruments | Self-funded |
| Stock | 400032 | PetrochemicalA1 | 3,500,000.00 | Fairvaluemethod | 382,200.00 | - | - | - | - | - | 382,200.00 | Investmentinotherequityinstruments | Self-funded |
| Stock | 600179 | AntongHoldings | 391,956.73 | Fairvaluemethod | 165,448.59 | 7,839.21 | - | - | - | - | 173,287.80 | Held-for-tradingfinancialassets | Self-funded |
| Stock | 400009 | GuangJian1 | 27,500.00 | Fairvaluemethod | 17,000.00 | - | - | - | - | - | 17,000.00 | Investmentinotherequityinstruments | Self-funded |
| Total | 460,848,845.83 | -- | 897,736,588.36 | -45,528,527.42 | 412,500.00 | 0.00 | 0.00 | 40,648,401.31 | 851,396,060.70 | -- | -- | ||
(2)InvestmentsinDerivativeFinancialInstruments
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VIISaleofMajorAssetsandEquityInvestments
1.SaleofMajorAssets
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
2.SaleofMajorEquityInvestments
□Applicable√NotapplicableVIIIPrincipalSubsidiariesandJointStockCompaniesPrincipalsubsidiariesandjointstockcompanieswithanover10%effectontheCompany’snetprofit:
Unit:RMB
| Name | RelationshipwiththeCompany | Principalactivity | Registeredcapital | Totalassets | Netassets | Operatingrevenue | Operatingprofit | Netprofit |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| ShanghaiInternationalPort(Group)Co.,Ltd. | Jointstockcompany | Businessrelatedtoport,containerandterminal | 23,173,674,650.00 | 165,927,983,549.06 | 101,672,988,842.61 | 17,362,678,537.04 | 10,568,397,229.38 | 9,168,282,128.06 |
| ChinaMerchantsPortHoldingsCompanyLimited | Subsidiary | Portbusiness,bondedlogisticsandpropertyinvestment | 42,521,339,893.42(HKD) | 140,041,923,765.46 | 95,197,445,432.97 | 4,722,661,879.99 | 4,301,651,669.15 | 3,924,079,558.91 |
SubsidiariesobtainedordisposedofintheReportingPeriod:
| Subsidiary | HowsubsidiarywasobtainedordisposedintheReportingPeriod | Effectsonoveralloperationsandoperatingperformance |
| YingkouPortInformationTechnologyCo.,Ltd. | Businesscombinationunderthesamecontrol | Businessintegration |
| DalianPortLogisticsNetworkCo.,Ltd. | Businesscombinationunderthesamecontrol | Businessintegration |
Otherinformationonprincipalsubsidiariesandjointstockcompanies:
ThereisnootherinformationontheCompany’sprincipalsubsidiariesandjointstockcompaniesintheReportingPeriodthatisrequiredtobedisclosed.IXStructuredBodiesControlledbytheCompany
□Applicable√NotapplicableX.RisksfacedbytheCompanyandcountermeasures
1.RiskofmacroeconomicfluctuationsInternationally,theworldeconomicsituationin2021isstillcomplexandsevere,therecoveryisunstableanduneven,andvariousderivativeriskscausedbytheimpactofthepandemiccannotbeignored.Inthefirsthalfoftheyear,thepandemicinEuropeandtheUnitedStateseasedandvaccinationwasaccelerated,butthepandemicinAsiarepeated.Theworld'stop10developedcountriespossess80%oftheworld'sCOVID-19vaccines.TheunevendistributionofglobalCOVID-19vaccineshasincreasedtheuncertaintyandimbalanceoftheglobaleconomicrecovery.Followingthepandemic,thenewroundofeasingmonetarypolicieswillincreaseglobaldebtlevelandemergingmarkets’economywillbecomemorevulnerable.Traditionalandnon-traditionalrisks,
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
suchasnaturaldisastersandgeopoliticaluncertainties,mayaggregatevolatilityintheinternationalfinancialmarket.SuchrisksofuncertaintieswillimpactChina’sforeigntrademarket,containershippingmarket,andbulkcommoditydemand,andposecertainchallengestotheCompany’soverseasinvestmentandplanning.Domestically,China’seconomicgrowthstillfacesuncertaintiesasaresultofthepandemic,theSino-USfriction,andtheeffectivenessofvaccination,andthefoundationforitseconomicrecoveryisnotthatfirm.Inthefirsthalfoftheyear,duetothecontinuedimpactofthepandemic,thedomesticconsumerindustrywasstillrelativelyweakindrivingtheeconomicgrowth,whichputacertainamountofpressureontherecoveryprocessofdomesticbusinessandtrade.Inaddition,thepandemichasacceleratedtheimplementationoftechnologicalinnovationpoliciesonnationallevelandamplifiedtheurgencyofthedigitalupgradeintheportandshippingindustry.Facingtheriskofmacroeconomicfluctuations,especiallytherisksimposedonforeigntradeandimportandexportbusinessbytheCOVID-19pandemic,exchangeratefluctuationsandotherfactors,theCompanywilltaketheinitiativetoidentifyandrespondtochanges.Firstly,itwillworkinfullswingtoimplementthenational14thFive-yearPlanandachievehigh-qualitygrowthbyfacilitatingtransformationandupgradeofportindustry.Secondly,itwillfollowthe“BeltandRoad”initiativeandthenationalstrategiesonbuildingastrongtransportationcountry,theGuangdong-HongKong-MacaoGreaterBayArea,andtheintegrateddevelopmentofYangtzeRiverDelta,soastohelpconstructthenewnationaldualcirculationdevelopmentregime.Thirdly,itwillseizetheopportunitiesarisingfromanewroundofhigh-levelopening-uppoliciestocontinuouslyimproveservicequalityofportsundertheeconomicglobalizationtrend.Fourthly,itwillenhancecapacitybuildinginrespectofriskidentification,warning,andsolving,andcontinuetoresearchandfollowuponthedevelopmenttrendintheglobalindustrialchainandtrademovementsandadjusttheCompany’sbusinessoperatingstrategiesappropriately,inordertoeffectivelyprevent,control,andreduceexternalrisks.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
2.PolicyrisksThepolicyrisksintheportindustrycanbeeitherpositiveornegativetotheindustry.Ontheonehand,underthenewregimeofdualcirculationdevelopment,policiessuchasencouragingtheexpansionofimportsareexpectedtobringnewopportunitiestothedevelopmentoftheindustry,andatthesametime,nationalstrategiessuchasthe“BeltandRoad”initiativeandtheGuangdong-HongKong-MacaoGreaterBayAreawillintroducefavorablepoliciestotheindustrialdevelopment;Ontheotherhand,policiesandinitiativesofthegovernmentforreducingcostsandimprovingefficiencyinlogistics,anti-monopoly,andenvironmentalprotectionmayputpressureontheprofitabilityoftheportindustry.Facingthepolicyrisksthatmightexist,ononehand,theCompanywillstrengthenpolicyresearchandproactivelypracticethe“BeltandRoad”initiativeandaseriesofnationalstrategiestoseizefirmlytheopportunitiesarisingfromthesepolicies;Ontheotherhand,inresponsetothenegativerisks,theCompanywillimproveitsoperationmanagementcapabilityandthesustainableprofitabilitybycontinuouslyenhancingqualityandefficiencyandstrengtheningresourceallocation.
3.OperationmanagementrisksUnderthefavorableenvironmentofdomesticandoverseasregionalportsintegration,theCompanyhasswiftlystrengtheneditsprincipalportbusinessandsuccessfullyfurtheroptimizedthenetworkofdomesticandoverseasports.However,theCompanyalsofacesunfavorableconditions,suchasincreaseddifficultiesinoperationandmanagementofportsincertainregions,relativelylowinvestmentreturns,andetc:(1)Investmentdecision-makingofsomeprojectswillcontinuetoberiskierandmoredifficultundertheincreasinglycomplicatedexternalenvironment;(2)Inthefirsthalfoftheyear,internationalexchangeratefluctuationsintensified.TheRMBexchangerateroseandfell,andthetwo-wayfluctuationcharacteristicsbecamemoreobvious.Inthisregard,theCompanyisworkinghardtoformanexchangerateriskmanagementandcontrolmechanismtotimelyadjustresponsestrategiesaccordingtoexchangeratefluctuations,thusminimizingthe
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
impactofexchangeratefluctuationsontheCompany’sperformance.(3)TheCompany’sinternationalizedoperationmanagementsystemstillneedstobeimprovedandthebenefitsofintegrationaretobeenhancedthroughmanagementoutputandotherwaystoaccommodatewiththeCompany’srapiddevelopmentandexpansion;(4)Theriskcontrolsystemneedstobecontinuouslydevelopedandoptimizedtoconstantlyimprovemanagementefficiency.IntermsoftheCompany’sinternaloperationmanagementrisks,theCompanywill:(1)increasecustomerloyaltyandseizemarketopportunitiesbasedonthreeimprovementelements,namely“market,resources,services”;(2)improveinternalcontrolsystemtotakefurtherprecautionsinriskcontrolandreinforcethestringentrestrictionsofinternalcontrol,ensuringeffectiveriskidentificationandcontrolandconsolidatingthefoundationofriskcontrol;and(3)optimizeriskwarningsystemtopreciselykeepabreastofthenewdevelopmentswithanaimtoseizetheopportunitieswhileensuringriskcontrol.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
PartIVCorporateGovernance
IAnnualandExtraordinaryGeneralMeetingsConvenedduringtheReportingPeriod
1.GeneralMeetingsConvenedduringtheReportingPeriod
| Meeting | Type | Investorparticipationratio | Dateofthemeeting | Disclosuredate | Indextodisclosedinformation |
| The2020AnnualGeneralMeeting | AnnualGeneralMeeting | 88.89% | 28May2021 | 29May2021 | Seetheresolutionannouncement(No.2021-047)onwww.cninfo.com.cn |
2.ExtraordinaryGeneralMeetingsConvenedattheRequestofPreferredShareholderswithResumedVotingRights
□Applicable√NotapplicableIIChangeofDirectors,SupervisorsandSeniorManagement
| Name | Officetitle | Typeofchange | Dateofchange | Reasonforchange |
| HuangChuanjing | ViceGM,SecretaryoftheBoard | Left | 15January2021 | Jobchange |
| SuJian | Director | Left | 5March2021 | Jobchange |
| LiYubin | SecretaryoftheBoard | Engaged | 13April2021 | Engaged |
| TuXiaoping | CFO | Engaged | 17May2021 | Engaged |
| ZhangYiming | ViceGM | Engaged | 17May2021 | Engaged |
| LiuWeiwu | Director | Elected | 28May2021 | Elected |
| ZhengYongkuan | Independentdirector | Elected | 28May2021 | Elected |
| WangZhenmin | Independentdirector | Left | 28May2021 | Personalreason |
| ZhengShaoping | ViceGM | Left | 6August2021 | Personalreason |
| LiuYingjie | ChairmanoftheSupervisoryCommittee | Left | 13August2021 | Jobchange |
| BaiJingtao | ViceChairman,CEO | Left | 20August2021 | Jobchange |
| ZhangYi | Director,COO,GM | Left | 20August2021 | Jobchange |
| WangXiufeng | CEO | Engaged | 23August2021 | Engaged |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
IIIInterimDividendPlan
□Applicable√NotapplicableTheCompanyhasnointerimdividendplan,eitherintheformofcashorstock.IVEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployeesTheCompanyisimplementingthestockoptionincentiveplan,andthereviewandapprovalprocedurescarriedoutinconnectionwiththeStockOptionIncentivePlanareasfollows:
(1)Atthe1
st
ExtraordinaryMeetingofthe10
thBoardofDirectorsin2021andthe1
stExtraordinaryMeetingofthe10
thSupervisoryCommitteein2021heldon29January2021,theProposalonAdjustingtheExercisePriceoftheFirstGrantundertheStockOptionIncentivePlan(PhaseI)andtheProposalontheGrantofStockOption(theReserved)toIncentiveObjectsoftheStockOptionIncentivePlan(PhaseI)oftheCompanywereconsideredandapprovedrespectively.TheSupervisoryCommitteereviewedthelistofincentiveobjectsforthereservedstockoptionsundertheStockOptionIncentivePlan(PhaseI)onthegrantdate,andindependentdirectorsexpressedindependentopinions.Refertotherelevantannouncements(AnnouncementNo.2021-007,No.2021-008)disclosedonwww.cninfo.com.cnfordetails.
(2)On9February2021,theCompanydisclosedtheAnnouncementonNotesoftheSupervisoryCommitteeontheReviewandPublicityoftheListofIncentiveObjectsfortheReservationundertheStockOptionIncentivePlan(PhaseI)(AnnouncementNo.2021-009).TheCompanypublishedthenamesandpositionsoftheincentiveobjectsforreservedstockoptionsinitsinternalOAsystemfrom29January2021to8February2021.Bytheendofthepublicity,theCompany’sSupervisoryCommitteehadnotreceivedanyobjectionagainsttheincentiveobjectsforreservedstockoptions.Refertotherelevantannouncement(AnnouncementNo.2021-009)disclosedon
www.cninfo.com.cnfordetails.
(3)5March2021,theCompanyhascompletedregistrationforthegrantofstockoption(thereserved)undertheStockOptionIncentivePlan(PhaseI).RefertotheAnnouncementon
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
CompletionoftheGrantofStockOption(theReserved)undertheStockOptionIncentivePlan(PhaseI)oftheCompany(AnnouncementNo.2021-013)disclosedonwww.cninfo.com.cnfordetails.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
PartVEnvironmentalandSocialResponsibility
IMajorEnvironmentalIssues
1.PollutionDischarge
| Nameofthecompanyorsubsidiarycompany | Namesofmajorandcharacteristicpollutants | Dischargemethod | Outletquantity | Outletdistribution | Dischargeconcentration | Pollutantdischargestandards | Totaldischarge | Totaldischargeapproved | Excessivedischarge |
| ThefirstbranchofZhanjiangPort(Group)Co.,Ltd. | Particulatematters | Unorganized | -- | Plantboundary | 0.055mg/m3 | DischargeLimitsofAirPollutants(DB44/27-2001) | -- | -- | Noexcessivedischarge |
| SO2 | Unorganized | -- | Plantboundary | 0.008mg/m3 | -- | -- | Noexcessivedischarge | ||
| Oxynitride | Unorganized | -- | Plantboundary | 0.007mg/m3 | -- | -- | Noexcessivedischarge | ||
| PH | Noefflux | -- | -- | 8.27 | Level-1standardsforthe2ndtimeintervalofDischargeLimitsofWaterPollutants(DB44/26-2001) | -- | -- | Noexcessivedischarge | |
| Suspendedsubstances | Noefflux | -- | -- | 6mg/L | -- | -- | Noexcessivedischarge | ||
| Chemicaloxygendemand(COD) | Noefflux | -- | -- | 8mg/L | -- | -- | Noexcessivedischarge | ||
| Five-daybiochemicaloxygendemand(BOD5) | Noefflux | -- | -- | 2.6mg/L | -- | -- | Noexcessivedischarge | ||
| Ammonia-nitrogen | Noefflux | -- | -- | 0.108mg/L | -- | -- | Noexcessivedischarge | ||
| Petroleum | Noefflux | -- | -- | 0.06mg/L | -- | -- | Noexcessivedischarge | ||
| Noise(plantboundary) | Unorganized | -- | Plantboundary | Daytime:(56.7-63.8)dBNighttime:(47.3-53.1)dB | EmissionStandardforNoiseofIndustrialEnterprisesatBoundary(GB12348-2008) | -- | -- | Noexcessivedischarge | |
| ThethirdbranchofZhanjiangPort(Group)Co.,Ltd. | Particulatematters | Unorganized | -- | Plantboundary | 0.094mg/m3 | DischargeLimitsofAirPollutants(DB44/27-2001) | -- | -- | Noexcessivedischarge |
| SO2 | Unorganized | -- | Plantboundary | 0.007mg/m3 | -- | -- | Noexcessivedischarge | ||
| Oxynitride | Unorganized | -- | Plantboundary | 0.017mg/m3 | -- | -- | Noexcessivedischarge | ||
| PH | Noefflux | -- | -- | 7.38 | Level-1standards | -- | -- | Noexcessivedischarge |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| Suspendedsubstances | Noefflux | -- | -- | 56mg/L | forthe2ndtimeintervalofDischargeLimitsofWaterPollutants(DB44/26-2001) | -- | -- | Noexcessivedischarge | |
| Chemicaloxygendemand(COD) | Noefflux | -- | -- | 89mg/L | -- | -- | Noexcessivedischarge | ||
| Ammonia-nitrogen | Noefflux | -- | -- | 3.9mg/L | -- | -- | Noexcessivedischarge | ||
| Petroleum | Noefflux | -- | -- | 0.07mg/L | -- | -- | Noexcessivedischarge | ||
| Phosphate | Noefflux | -- | -- | 0.45mg/L | -- | -- | Noexcessivedischarge | ||
| Noise(plantboundary) | Unorganized | -- | Plantboundary | Daytime:(55.8-59)dBNighttime:(46.7-48.8)dB | EmissionStandardforNoiseofIndustrialEnterprisesatBoundary(GB12348-2008) | -- | -- | Noexcessivedischarge | |
| ZhanjiangPortPetrochemicalTerminalCo.,Ltd. | Volatileorganiccompounds(plantboundary) | Unorganized | -- | Plantboundary | 0.32mg/m3 | DischargeLimitsofAirPollutants(DB44/27-2001) | -- | -- | Noexcessivedischarge |
| Volatileorganiccompounds | Discontinuousdischarge | 2 | Twoexhaustoutlets,oneforvehicleloading,anotherfortrainloading | (4.55-20.7)g/m3 | EmissionStandardofAirPollutantforBulkPetroleumTerminals(GB20950-2020) | 0.0030755tons | 233.783tons(totalapprovedamountforoneyear) | Noexcessivedischarge | |
| Volatileorganiccompounds | Unorganized | -- | Volatilizationofstoragetank(33storagetank) | -- | DischargeLimitsofAirPollutants(DB44/27-2001) | 60.67tons | Noexcessivedischarge | ||
| Volatileorganiccompounds | Unorganized | -- | Adynamicorstaticsealingpointaround21,500 | -- | DischargeLimitsofAirPollutants(DB44/27-2001) | 0.0728tons | Noexcessivedischarge | ||
| Noise(plantboundary) | Plantboundary | -- | Plantboundary | Daytime:(60.9-62.1)dBNighttime:(51.7--52.5)dB | EmissionStandardforNoiseofIndustrialEnterprisesatBoundary(GB12348-2008) | -- | -- | Noexcessivedischarge | |
| Chemicaloxygendemand(COD) | Discontinuousdischarge | 2 | Wastewateroutlet,Rainwat | Industrialwastewater:43-63mg/LRainwater: | DischargeLimitsofWaterPollutants | 0.386889495tons | -- | Noexcessivedischarge |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| eroutlet | 30-45mg/L | (DB44/26-2001)ofGuangdongProvince | ||||||
| Ammonia-nitrogen(NH3-N) | Discontinuousdischarge | 2 | Wastewateroutlet,Rainwateroutlet | Industrialwastewater:(0.23-0.325)mg/LRainwater:(0.187-0.555)mg/L | DischargeLimitsofWaterPollutants(DB44/26-2001)ofGuangdongProvince | 0.002147699tons | -- | Noexcessivedischarge |
| Petroleum | Discontinuousdischarge | 2 | Wastewateroutlet,Rainwateroutlet | Industrialwastewater:(0.06-0.45)mg/LRainwater:(0.21-0.44)mg/L | DischargeLimitsofWaterPollutants(DB44/26-2001)ofGuangdongProvince | 0.00185053tons | -- | Noexcessivedischarge |
| PH | Discontinuousdischarge | 1 | Wastewateroutlet | 7.17-7.79 | DischargeLimitsofWaterPollutants(DB44/26-2001)ofGuangdongProvince | -- | -- | Noexcessivedischarge |
| Suspendedsubstances | Discontinuousdischarge | 1 | Wastewateroutlet | 6mg/L | DischargeLimitsofWaterPollutants(DB44/26-2001)ofGuangdongProvince | -- | -- | Noexcessivedischarge |
| Totalorganiccarbon(TOC) | Discontinuousdischarge | 1 | Wastewateroutlet | 13.8mg/L | DischargeLimitsofWaterPollutants(DB44/26-2001)ofGuangdongProvince | 0.11263135tons | -- | Noexcessivedischarge |
| Volatilephenols | Discontinuousdischarge | 1 | Wastewateroutlet | 0.01g/L | DischargeLimitsofWaterPollutants(DB44/26-2001)ofGuangdongProvince | 0.00008162tons | -- | Noexcessivedischarge |
| Totalcyanide | Discontinuousdischarge | 1 | Wastewateroutlet | 0.004mg/L | DischargeLimitsofWaterPollutants(DB44/26-2001)ofGuangdongProvince | 0.00003265tons | -- | Noexcessivedischarge |
2.Constructionandoperationofpollutioncontrolfacilities
(1)Wastewatertreatment
①Atpresent,thefirstbranchofZhanjiangPort(Group)Co.,Ltd.hasoneindustrialsewagetreatmentplant,andindustrialsewageiscollectedforwateringanddustcontrolintheportarea
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
aftertreatment;whiledomesticsewageintheportareaisassignedtoaqualifiedthirdpartyfortreatmentincompliancewithrelevantstandards.②ThethirdbranchofZhanjiangPort(Group)Co.,Ltd.hasasetofrainwatercollectionfacilities,andtherainwateriscollectedforwateringanddustcontrolintheportareaaftertreatment;whiledomesticsewageintheportareaisassignedtoaqualifiedthirdpartyfortreatmentincompliancewithrelevantstandards.③ZhanjiangPortPetrochemicalTerminalCo.,Ltd.hastwosetsofwastewatertreatmentequipmentandonesetofCODtreatmentequipment.Theabove-mentionedequipmentandfacilitiesareinnormaloperation.
(2)Wastegastreatment①ThefirstandthirdbranchesofZhanjiangPort(Group)Co.,Ltd.usewaterspray,watermistspray,sprinklerandotherfacilitiestomeetthedemandfordustcontrolinmassstockpilesandworkingplaces.Toreducedustemissionstothemaximum,thestockpileisfullycovered,andthedustcontrolmanagementintheprocessofstaticstorageanddynamicoperationisstrengthened.Thefirstbranchownsadust-freeandsound-proofwallwithalengthof160metersandaheightof12metersonthenorthernboundaryoftheplant;andthethirdbranchhasadustsuppressionwall427meterslongand17metershigh,aretainingwall2.5metershighand3,100meterslong,andagreenbeltaroundtheportareacovering60,000squaremeters.②ZhanjiangPortPetrochemicalTerminalCo.,Ltd.hastwosetsofwastegastreatmentequipmenttorecovertheoilandgasgeneratedduringvehicleandtrainloading.Onesetisfortherecoveryofoilandgasofvehicles,withaprocessingcapacityof200m?/h.Theotherisfortherecoveryofoilandgasoftrains,withaprocessingcapacityof1200m?/h.Theabove-mentionedequipmentandfacilitiesareinnormaloperation.
(3)HazardouswasteThefirstandthirdbranchesofZhanjiangPort(Group)Co.,Ltd.,andZhanjiangPortPetrochemicalTerminalCo.,Ltd.providesevenspecialroomsfortemporarystorageofhazardouswasteasrequired,andassignaqualifiedthirdpartytotransportthewasteintime.Thissystemisinnormaloperation.
3.AssessmentoftheenvironmentalimpactofconstructionprojectsandotheradministrativelicensesofenvironmentalprotectionAccordingtotherequirementsofrelevantlawsandregulations,thefirstandthirdbranchesofZhanjiangPort(Group)Co.,Ltd.,andZhanjiangPortPetrochemicalTerminalCo.,Ltd.providevariousdocumentssuchastheenvironmentalimpactreport,environmentalinspectionandacceptancereport,andapprovalandlicensesofenvironmentalauthorities.Thereplydocumentsinclude:ReviewOpinionsoftheCurrentEnvironmentalImpactAssessmentReportoftheFirstBranchofZhanjiangPort(Group)Co.,Ltd.(DocumentZ.X.H.J.[2018]No.12);ReviewOpinionsoftheCurrentEnvironmentalImpactAssessmentReportoftheThirdBranchofZhanjiangPort(Group)Co.,Ltd.(DocumentZ.H.C.J.[2018]No.31);EnvironmentalImpactAssessmentReportoftheCurrentStatusofCrudeOilStorageTankFarmsofZhanjiangPortPetrochemicalTerminalCo.,Ltd.(DocumentZ.X.H.J.[2019]No.05);EnvironmentalImpactAssessmentReportof1#TankFarmProjectofZhanjiangPortPetrochemicalTerminalCo.,Ltd.(DocumentZ.H.J.X.[2021]No.
6),etc.
4.ContingencyplanforenvironmentalemergenciesInordertoearnestlyimplementtheEmergencyResponseLawofthePeople'sRepublicofChina,
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
otherrelevantlaws,regulationsanddocuments,andtoprevent,prepareforandrespondtoenvironmentalemergencies,aswellastoprotectthelivesandreducepropertylosses,ZhanjiangPort(Group)Co.,Ltd.preparesContingencyPlanforEnvironmentalEmergenciesofZhanjiangPort(Group)Co.,Ltd.(includingcontingencyplansforthefirstandthirdbranches),andZhanjiangPortPetrochemicalTerminalCo.,Ltd.preparestheContingencyPlanforEnvironmentalEmergenciesofZhanjiangPortPetrochemicalTerminalCo.,Ltd.andhascompletedthefilingofthisdocument(FilingNo.440803-2019-0010-H).
5.Environmentalself-monitoringprogramThefirstandthirdbranchesofZhanjiangPort(Group)Co.,Ltd.,andZhanjiangPortPetrochemicalTerminalCo.,Ltd.entrustenvironmentalmonitoringofwastewater,wastegasandnoisetotheinstitutionswithnationallyrecognizedqualifications.Withaccumulateddataandascientificoutlooktofurtherguideenvironmentalprotection,theCompanystrivestobeanenvironment-friendlyenterprisewhichpromotessocialharmony.
6.AdministrativepenaltiesforenvironmentalproblemsduringtheReportingPeriod
| Nameofthecompanyorsubsidiarycompany | Penaltyreason | Violationsituation | Penaltyresult | ImpactontheproductionandoperationoftheCompany | RemediationmeasuresoftheCompany |
| ShenzhenMawanPortWaterwayCo.,Ltd. | Administrativepenaltiesforenvironmentalprotectionproblems | ThelesseesofShenzhenMawanPortWaterwayCo.,Ltd.didnottaketheairtightmethodtoloadandunloadthemuck | AfineofRMB10,000 | Nosignificanceinfluence | Asrequired,ShenzhenMawanPortWaterwayCo.,Ltd.talkedwiththetwolesseesandestablishedarectificationperiod.TheOperationsDepartmentofShenzhenMawanPortWaterwayCo.,Ltd.hasimprovedthesprinklerequipmentandinstalledavehiclewashingsystemforthemuckoperationsitewithinthespecifiedperiod.TheQualityandSafetyDepartmentofChinaMerchantsPortService(Shenzhen)Co.,Ltd.hasintensifiedtheinspectionofmuskdustandmuskvehiclecleaningofShenzhenMawanPortWaterwayCo.,Ltd. |
7.Otherenvironmentalinformationthatshouldbedisclosed
□Applicable√Notapplicable
8.OtherinformationrelatedtoenvironmentalprotectionWiththeaimofbuildingagreenecologicalport,theCompanyabidesbyrelevantlawsandregulationsonenvironmentalprotection,improvesthecorporateenvironmentalprotectionsystem,assumesitsresponsibilitiesforenvironmentalprotection,andfurthersupportsthemanagementofenergyconservationandenvironmentalprotection.TheCompanyidentifiesandpreparesfortherisksposedbyclimatechange,attachesgreatimportancetotyphoonprecautionsandactivelyrespondstotheimpactofclimatechange.Italsokeepsitspacewiththestrategiesof"EmissionPeak"and"CarbonNeutrality",andinvolvesitselfintheconstructionofnational,provincialandministerial"EmissionPeak"and"CarbonNeutrality"pilotprojectsaswellasincarbonverificationandperformance.DuringtheReportingPeriod,whiletakingmeasuresinnormalizingpandemicpreventionandcontrol,theCompanyengagesitssubordinatecompaniesinthefourth"TellingStoriesonEnergyConservation"micro-video,photographyandessaycontest.Intermsofecologicalcivilizationandgreendevelopmentpublicity,theCompanyadherestotheconceptofgreenandlow-carbonproductionandlifestyle,andguidesallemployeestoparticipateinenergyconservationandemissionreduction,promotesecologicalcivilizationconstructionandthuscreates
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
abetterlivingenvironment.Moreover,theCompanyanditssubordinatecompanieshavesignedtheletterofresponsibilityforenergyconservationandenvironmentalprotectionatthebeginningofthisyearinanefforttofulfilltheresponsibilitiesforenvironmentalprotectionandtostrengthenthereviewofresponsibilities.TheCompanyfirmlyupholdsthephilosophyofgreendevelopment,advancesthereformofenergy-savingtechnologies,promotestheapplicationofgreenandlow-carbontechnologies,steadilyimprovesoperationalefficiencyandenergyefficiency,seekingtobuildagreenandlow-carbonportwhichcontributestoglobalclimategovernance.TheCompanycomplieswithnationalandlocalstandardsonenvironmentalprotection,adherestoatwo-prongedapproachofproductionandenvironmentalprotection,strengthensenvironmentalprotectiongovernance,improvesthecapacityofenvironmentalprotectionandanti-foulingperformance,andenhanceson-sitecontrolandroutineinspectiononenvironmentalprotection.Italsoadoptstheprincipleofenergy-savingtechnicaltransformation"integratingindependenttransformationwiththeassistanceofexternalprofessionalinstitutions",andpromotesnewenergy-savingtechnologiesandproductssuchas"shore-to-shippowersupply","oiltoelectricity"and"beltconveyortransformation",thusimprovingenergyutilizationefficiency.TheCompanycomplieswithnationalandlocalenergy-savingpolicies,phasesoutobsoletestoragefacilitiesandrefusestopurchaseinefficientequipment.Also,weupgradethetechnicalequipmentinoperationwithadvancedtechnologytoimprovetheperformanceofoveralltechnicalequipment.Intermsofcontainerbusinesssegment,shore-to-shippowersupplyandtheconversionofoil-usingRTGtoelectricity-drivenRTGrunsmoothly.Inrespectofthebulkcargobusinesssegment,theCompanyoptimizesthebulkcargoloadingandunloadingoperations,developsorpurchasesprofessionalequipment,promotestheconstructionofsilos,warehousesandotherstoragefacilitiestoreducedustemissions.Inthepetrochemicalbusinesssegment,theoilandgasrecoverysystemofVOCsandthedemolitionofoldstoragetankshavebeencarriedoutsteadily.IICorporateSocialResponsibility(CSR)TheCompanyhighlightsandpracticescorporatesocialresponsibilities.Whileimprovingbusinessperformanceandcreatingbenefitsforshareholders,theCompanyearnestlyperformsitssocialresponsibilitiesforemployees,societyandenvironment,andpromotesthesustainabledevelopmentoftheenterpriseandsociety.TheCompanyadherestothephilosophyofwin-winintegration,continuestohelpdrivethedevelopmentofpoorcommunities,paysattentiontogroupswithspecialneeds,andworkstogetherwithlocalgovernmentsandpeopletofighttheepidemic.Inthefirsthalfof2021,theCompanydonatedthefollowingsupplies:USD21,600totheGovernmentofSriLankaforthebuildingofCOVID-19isolationcenters;eight20-footcontainerstoahospitalinGampahaDistrict,WesternProvince,SriLanka,whichweretransformedintonucleicacidtestinglaboratories;USD4,500worthofanti-pandemicsupplies(5,000N95respiratormasks)toahospitalinHambantota;USD10,000toHambantotaZonalEducationOfficeandahospital,andadditionalUSD75,000worthofPCRdetectioninstrumentstoahospitalHambantota.ThroughtheDjiboutidevelopmentproject,theCompanymadeadonationofUSD30,000worthofsuppliesto300poverty-strickenfamiliesinPk23,DikhilandTadjourahregionsofDjibouti.Inthefirsthalfof2021,theCompanycontinuedtobuildthe"ShapingBlueDreamsTogether(C-Blue)"charitybrandandtoprovidecareforleft-behindchildrenandalleviatepovertyforrural
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
areaswiththesupportoftheCMPortGroup'steamof"C-Blue"volunteers.IntermsofactivitiesinChina,theCompanyhostedCMPortGroup's"CaringforYou,StandingbyYou"developmentcampforstudentsinWeininginthefirsthalfof2021.Thiscampwasasix-day,five-nightcampfor100teachersandstudentsinWeiningCounty,GuizhouProvinceandprovidedthemwithaplatformtoenrichthemanddeveloptheirdreams.Throughthisprogram,CMPortshoweditsloveandcareforstudentsaswellasexpressedawishtostandbythem.Inaddition,ZhanjiangPortandCMICTinitiatedcommunitycareprojectssuchasappliancerepairserviceandhaircutserviceforresidents.Asforoverseasactivities,CICThaselementarilycompletedtheconstructionof"LoveVillage"communitycenterinKalutaraDistrict,SriLanka.InApril,CICTandHIPGjointlylaunchedthesecond"LoveVillage"projectinSriLankaandconductedresearchonthisprojectinavillageofHambantotaDistrict.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
PartVISignificantEvents
ICommitmentsoftheCompany’sActualController,Shareholders,RelatedPartiesandAcquirers,aswellastheCompanyItselfandOtherEntitiesFulfilledintheReportingPeriodorOverdueatthePeriod-End
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIOccupationoftheCompany’sCapitalbytheControllingShareholderoranyofotherRelatedPartiesforNon-OperatingPurposes
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IIIIrregularitiesintheProvisionofGuarantees
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.IVEngagementandDisengagementofIndependentAuditorAretheinterimfinancialstatementsaudited?
□Yes√NoTheinterimfinancialstatementsareunaudited.VExplanationsGivenbytheBoardofDirectorsandtheSupervisoryCommitteeRegardingtheIndependentAuditor’s“ModifiedOpinion”ontheFinancialStatementsoftheReportingPeriod
□Applicable√NotapplicableVIExplanationsGivenbytheBoardofDirectorsRegardingtheIndependentAuditor’s“ModifiedOpinion”ontheFinancialStatementsofLastYear
□Applicable√NotapplicableVIIInsolvencyandReorganization
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
VIIILegalMattersMajorlawsuitsandarbitrations:
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.Otherlegalmatters:
| Basicinformation | Amountinvolved(RMB’0,000) | Whetherformedexpectedliabilities | Progress | Theresultsandinfluenceoflawsuits(arbitrations) | Executionofjudgment | Disclosuredate | Indextodisclosedinformation |
| ThesummaryofBrazilTCPcases(note) | 22,360.49 | Partly | Unsettled | Lowrisk | - | - | - |
| Thesummaryofothermattersnotmetdisclosurestandardsofmajorlawsuits(arbitrations) | 20,254 | Partly | Unsettled | Lowrisk | - | - | - |
Note:refertoNotestoFinancialStatements-CommitmentsorContingencyfordetailsofBrazilTCPcases.IXPunishmentsandRectifications
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XCreditQualityoftheCompanyaswellasItsControllingShareholderandActualController
□Applicable√NotapplicableXIMajorRelated-PartyTransactions
1.ContinuingRelated-PartyTransactions
| Relatedparty | RelationshipwiththeCompany | Typeoftransaction | Specifictransaction | Pricingprinciple | Transactionprice | Totalvalue(RMB’0,000) | As%ofthetotalvalueofallthesame-typetransactions | Approvedtransactionline(RMB’0,000) | Overtheapprovedlineornot | Wayofsettlement | Obtainablemarketpriceforsame-typetransactions | Disclosuredate | Indextodisclosedinformation |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| LiaoningPortGroupCo.,Ltd.anditssubsidiaries | Underthecontrolofultimateshareholder | Renderserviceandleasetorelatedparty,receiveserviceandleasefromrelatedparty | Lease,laborcost,informationserviceincome,etc. | Marketprice | 4,935.20 | 4,935.20 | 12.31% | 29,728.29 | No | Settledmonthly | 4,935.20 | 31March2021 | www.cninfo.com.cn(AnnouncementNo.2021-021) |
| AntongHoldingsCo.,Ltd.anditssubsidiaries | Affiliatedlegalperson | Renderservicetorelatedparty,receiveserviceandleasefromrelatedparty | Laborcost,freightforwardingagent,Portservicecharge | Marketprice | 9,854.19 | 9,854.19 | 31.36% | 13,522.24 | No | Settledmonthly | 9,854.19 | ||
| SinotransLimitedanditssubsidiaries | Underthecontrolofultimateshareholder | Renderserviceandleasetorelatedparty,receiveservicefromrelatedparty | Laborcost,demurrage,lease,etc. | Marketprice | 6,325.89 | 6,325.89 | 15.78% | 14,637.11 | No | Settledmonthly | 6,325.89 | ||
| ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.anditssubsidiaries | Underthecontrolofultimateshareholder | Renderserviceandleasetorelatedparty,receiveserviceandleasefromrelatedparty | Laborcost,leaseexpenseoflandandhouses | Marketprice | 3,577.80 | 3,577.80 | 8.93% | 9,506.17 | No | Settledmonthly | 3,577.80 | ||
| Total | -- | -- | 24,693.08 | -- | 67,393.81 | -- | -- | -- | -- | -- | |||
| Large-amountsalesreturnindetail | None | ||||||||||||
| GivetheactualsituationintheReportingPeriod(ifany)whereanestimatehadbeenmadeforthetotalvalueofcontinuingrelated-partytransactionsbytypetooccurintheReportingPeriod | TheProposalonRecognitionof2020DailyRelated-partyTransactionandtheForecastof2021DailyRelated-partyTransactionwasreviewedandapprovedonthe2020AnnualGeneralMeetingon28May2021,whichallowedtheCompanyandsubsidiariestoconductdailybusinesstransactionincludingofficeleasing,providingorreceivinglaborservices.Theamountofdailyrelated-partytransactionsin2021isestimatedtobeRMB909million.DuringtheReportingPeriod,therewasnosignificantdifferencebetweentheactualamountandtheestimatedamount. | ||||||||||||
| Reasonforanysignificantdifferencebetweenthetransactionpriceandthemarketreferenceprice(ifapplicable) | N/A | ||||||||||||
2.Related-PartyTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable√Notapplicable
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√Notapplicable
4.CreditsandLiabilitieswithRelatedPartiesCreditsreceivablewithrelatedparties
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| Relatedparty | Relatedrelationship | Formingreason | Whetherthereisoccupationonnon-operatingcapitalornot | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,000) | RecoveredintheReportingPeriod(RMB’0,000) | Interestrate | InterestintheReportingPeriod(RMB’0,000) | Endingbalance(RMB’0,000) |
| ChinaMerchantsBank | Theultimatecontrollingshareholderhasmajorinfluenceonit | Bankdeposits/Structureddeposits | No | 275,126.26 | 2,800,073.24 | 2,706,074.41 | 1.65%-3.16% | 2,770.91 | 369,125.09 |
| EffectsofcreditswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheabovecreditsreceivablewithrelatedpartiesweremainlydepositsinfinancialinstitutionswhichhasnomajorinfluenceontheCompany’soperatingresultsandfinancialconditions. | ||||||||
Liabilitiespayablewithrelatedparties:
| Relatedparty | Relatedrelationship | Formingreason | Beginningbalance(RMB’0,000) | IncreasedintheReportingPeriod(RMB’0,000) | RecoveredintheReportingPeriod(RMB’0,000) | Interestrate | InterestintheReportingPeriod(RMB’0,000) | Endingbalance(RMB’0,000) |
| ChinaMerchantsBank | Theultimatecontrollingshareholderhasmajorinfluenceonit | Borrowing | 10,903.32 | 6,581.43 | 0.00 | 3.35% | 326.88 | 17,484.75 |
| EffectsofliabilitieswithrelatedpartiesontheCompany’soperatingresultsandfinancialconditions | TheaboveliabilitiespayablewithrelatedpartiesweremainlyfinancialinstitutionloanswhichhadnomajorinfluenceontheCompany’soperatingresultsandfinancialconditions. | |||||||
5.TransactionswithRelatedFinanceCompanies,orFinanceCompaniesControlledbytheCompanyDepositbusiness
| Relatedparty | Relatedrelationship | Dailymaximumlimits(RMB’0,000) | Interestraterange | Beginningbalance(RMB’0,000) | Actualamount(RMB’0,000) | Endingbalance(RMB’0,000) |
| ChinaMerchantsGroupFinanceCo.,Ltd. | Othercompanyunderthesamecontrolofcontrollingshareholder | 500,000.00 | 1.495%-2.025% | 156,892.42 | -66,391.20 | 90,501.22 |
Loanbusiness
| Relatedparty | Relatedrelationship | Loanlimit(RMB’0,000) | Interestraterange | Beginningbalance(RMB’0,000) | Actualamount(RMB’0,000) | Endingbalance(RMB’0,000) |
| China | Othercompany | 1,000,000.00 | 3.45%-4.80% | 312,156.42 | -219,847.73 | 92,308.69 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| MerchantsGroupFinanceCo.,Ltd. | underthesamecontrolofcontrollingshareholder |
CreditorotherfinancebusinessTheCompanydidnotmakedepositsin,receiveloansorcreditfromandwasnotinvolvedinanyotherfinancebusinesswithanyrelatedfinancecompany,financecompanycontrolledbytheCompanyoranyotherrelatedparties.
6.OtherMajorRelated-PartyTransactions
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIIMajorContractsandExecutionthereof
1.Entrustment,ContractingandLeases
(1)EntrustmentDetailsofentrustmentOn13December2018,theCompanyheldthe10
th
ExtraordinaryMeetingin2018ofthe9
thBoardofDirectors,onwhichtheProposalonSigningCustodyAgreementofEquityofLiaoningPortGroupCo.,Ltd.betweentheCompanyandChinaMerchants(Liaoning)PortDevelopmentCo.,Ltd.wasreviewedandapproved.TheCompanywasallowedtosigntheCustodyAgreementofEquityofLiaoningPortGroupCo.,Ltd.withChinaMerchants(Liaoning)PortDevelopmentCo,Ltd.,theindirectwholly-ownedsubsidiaryofCMG,andmadeanappointmentthatChinaMerchants(Liaoning)PortDevelopmententrustedall49.9%sharesofLiaoningPortGroupCo.,Ltd.heldbyitasof13December2018totheCompanyformanagement.Projectwhichgeneratesprofitorlossreachingover10%oftotalprofitsoftheCompanyduringtheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
(3)Leases
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
2.MajorGuarantees
Unit:RMB'0,000
| GuaranteesprovidedbytheCompanyforexternalparties(exclusiveofthoseforsubsidiaries) | ||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| TerminalLinkSAS | N/A | 6,714.48 | 11June2013 | 6,714.48 | Generalguarantee | About20years | Not | Not |
| KHORAMBADOFZCO | 30March2019 | 18,669.28 | 24May2019 | 11,238.83 | Joint-liability | About13years | Not | Yes |
| KHORAMBADOFZCO | 31March2021 | 7,000.00 | - | - | - | - | - | - |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(A1) | 7,000.00 | TotalactualamountofsuchguaranteesintheReportingPeriod(A2) | - | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(A3) | 32,383.76 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(A4) | 17,953.31 | |||||
| GuaranteesprovidedbytheCompanyastheparentforitssubsidiaries | ||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ChiwanWharfHoldings(HongKong)Limited | 16April2020 | 150,000.00 | 28July2020 | 150,000.00 | Joint-liability | About1year | Not | Not |
| ChiwanWharfHoldings(HongKong)Limited | 31March2021 | 150,000.00 | - | - | - | - | - | - |
| ZhanjiangPort(Group)Co.,Ltd. | 31March2021 | 200,000.00 | - | - | - | - | - | - |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(B1) | 350,000.00 | TotalactualamountofsuchguaranteesintheReportingPeriod(B2) | - | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(B3) | 500,000.00 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(B4) | 150,000.00 | |||||
| Guaranteesprovidedbetweensubsidiaries | ||||||||
| Guarantee-receivingentity | Disclosuredateoftheguaranteelineannouncement | Lineofguarantee | Actualoccurrencedate(dateofagreementsigning) | Actualguaranteeamount | Typeofguarantee | Termofguarantee | Havingexpiredornot | Guaranteeforarelatedpartyornot |
| ChinaMerchantsInternationalTerminal(Qingdao)Co.,Ltd. | 16April2020 | 59,010.00 | 1January2021 | 2,830.00 | Joint-liability | N/A | Not | Not |
| ShenzhenJinyuRongtaiInvestmentDevelopmentCo.,Ltd. | N/A | 80,000.00 | 12January2017 | 68,000.00 | Joint-liability | About10years | Not | Not |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| ChinaMerchantsInternational(China)InvestmentCo.,Ltd. | N/A | 2,500.00 | 30June2016 | 2,500.00 | Joint-liability | About10years | Not | Not |
| ChinaMerchantsFinanceCompanyLimited | 4May2012 | 324,119.45 | 4May2012 | 324,119.45 | Generalguarantee | About10years | Not | Not |
| ChinaMerchantsFinanceCompanyLimited | 3August2015 | 324,119.45 | 3August2015 | 324,119.45 | Generalguarantee | About10years | Not | Not |
| CMHIFinance(BVI)Co.,Ltd | 6August2018 | 583,415.01 | 6August2018 | 583,415.00 | Generalguarantee | About5years | Not | Not |
| CMHIFinance(BVI)Co.,Ltd | 6August2018 | 388,943.34 | 6August2018 | 388,943.34 | Generalguarantee | About10years | Not | Not |
| CMHIFinance(BVI)Co.,Ltd | 26September2020 | 555,000.00 | 9October2020 | 388,943.34 | Generalguarantee | About3years | Not | Not |
| 129,647.78 | Generalguarantee | About5years | Not | Not | ||||
| COLOMBOINTERNATIONALCONTAINERTERMINALSLIMITED | N/A | 226,818.79 | 16September2012 | 5,701.36 | Generalguarantee | About13years | Not | Not |
| COLOMBOINTERNATIONALCONTAINERTERMINALSLIMITED | N/A | 9,723.58 | 16September2012 | 0.00 | Generalguarantee | Unlimited | Not | Not |
| COLOMBOINTERNATIONALCONTAINERTERMINALSLIMITED | N/A | 16,205.97 | 16September2012 | 0.00 | Generalguarantee | Unlimited | Not | Not |
| LomeContainerTerminalCo.,Ltd. | N/A | 7,732.59 | June2015 | 1,129.92 | Generalguarantee | About9years | Not | Not |
| LomeContainerTerminalCo.,Ltd. | N/A | 7,732.59 | June2015 | 1,129.92 | Generalguarantee | About9years | Not | Not |
| LomeContainerTerminalCo.,Ltd. | N/A | 7,732.59 | June2015 | 1,129.92 | Generalguarantee | About9years | Not | Not |
| ChinaMerchantsPortDevelopment(Shenzhen)Co.,Ltd. | N/A | 320,000.00 | 31July2017 | 15,334.00 | Joint-liability | About5years | Not | Not |
| TCP-TERMINALDECONTElNERESDEPARANAGUAS/A. | N/A | 39,507.00 | 19April2018 | 18,358.90 | Generalguarantee | About6years | Not | Not |
| TCP-TERMINALDECONTElNERESDEPARANAGUAS/A. | N/A | 56,369.51 | 7November2016 | 56,369.50 | Generalguarantee | About6years | Not | Not |
| ShenzhenHaixingHarborDevelopmentCo.,Ltd. | 30March2019 | 327,000.00 | 26June2019 | 19,934.51 | Joint-liability | About18years | Not | Not |
| ChinaMerchantsInternationalTerminal(Qingdao)Co.,Ltd. | 31March2021 | 60,000.00 | - | - | - | - | - | - |
| ZhanjiangPort(Group)Co.,Ltd. | 31March2021 | 80,000.00 | - | - | - | - | - | - |
| HambantotaInternationalPortGroup(Pvt)Ltd. | 31March2021 | 100,000.00 | - | - | - | - | - | - |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| CMHIFinance(BVI)Co.,Ltd | 31March2021 | 800,000.00 | - | - | - | - | - | - |
| TCP-TERMINALDECONTElNERESDEPARANAGUAS/A. | 31March2021 | 10,000.00 | - | - | - | - | - | - |
| TotalapprovedlineforsuchguaranteesintheReportingPeriod(C1) | 1,050,000.00 | TotalactualamountofsuchguaranteesintheReportingPeriod(C2) | 2,830.00 | |||||
| TotalapprovedlineforsuchguaranteesattheendoftheReportingPeriod(C3) | 4,385,929.87 | TotalactualbalanceofsuchguaranteesattheendoftheReportingPeriod(C4) | 2,331,606.41 | |||||
| Totalguaranteeamount(totalofthethreekindsofguaranteesabove) | ||||||||
| TotalguaranteelineapprovedintheReportingPeriod(A1+B1+C1) | 1,407,000.00 | TotalactualguaranteeamountintheReportingPeriod(A2+B2+C2) | 2,830.00 | |||||
| TotalapprovedguaranteelineattheendoftheReportingPeriod(A3+B3+C3) | 4,918,313.63 | TotalactualguaranteebalanceattheendoftheReportingPeriod(A4+B4+C4) | 2,499,559.72 | |||||
| Totalactualguaranteeamount(A4+B4+C4)as%oftheCompany’snetassetvalue | 65.53% | |||||||
| Ofwhich: | ||||||||
| Balanceofguaranteesprovidedforshareholders,actualcontrollerandtheirrelatedparties(D) | 11,238.83 | |||||||
| Balanceofdebtguaranteesprovideddirectlyorindirectlyforobligorswithanover70%debt/assetratio(E) | 2,392,989.60 | |||||||
| Amountbywhichthetotalguaranteeamountexceeds50%oftheCompany’snetassets(F) | 592,393.36 | |||||||
| Totalofthethreeamountsabove(D+E+F) | 2,996,621.78 | |||||||
| JointresponsibilitiespossiblyborneintheReportingPeriodforundueguarantees(ifany) | N/A | |||||||
| Provisionofexternalguaranteesinbreachoftheprescribedprocedures(ifany) | N/A | |||||||
3.CashEntrustedforWealthManagement
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
4.ContinuingMajorContracts
□Applicable√Notapplicable
5.OtherMajorContracts
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
XIIIOtherSignificantEvents
1.IndextoDisclosedInformationThesignificanteventsdisclosedbytheCompanyonSecuritiesTimes,ShanghaiSecuritiesNews,TaKungPaoandwww.cninfo.com.cnduringtheReportingPeriodareasfollows:
| AnnouncementNo. | Dateoftheannouncement | Titleoftheannouncement |
| 2021-001 | 16January2021 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofDecember2020 |
| 2021-002 | 16January2021 | AnnouncementonResignationofViceGeneralManager&SecretaryoftheBoardandtheViceGeneralManagerActingAstheSecretaryoftheBoard |
| 2021-003 | 21January2021 | ReminderoftheIssuanceof2021PhaseISuper-short-termFinancingBonds |
| 2021-004 | 26January2021 | AnnouncementonIssueResultsof2021PhaseISuper-short-termFinancingBonds |
| 2021-005 | 30January2021 | AnnouncementonResolutionsofthe1stSpecialMeetingofthe10thBoardofDirectorsin2021 |
| 2021-006 | 30January2021 | AnnouncementonResolutionsofthe1stSpecialMeetingofthe10thSupervisoryCommitteein2021 |
| 2021-007 | 30January2021 | AnnouncementonAdjustingtheExercisePriceoftheFirstGrantundertheStockOptionIncentivePlan(PhaseI) |
| 2021-008 | 30January2021 | AnnouncementontheGrantofStockOption(theReserved)toIncentiveObjectsoftheStockOptionIncentivePlan(PhaseI)oftheCompany |
| 2021-009 | 9February2021 | AnnouncementonNotesoftheSupervisoryCommitteeontheReviewandPublicityoftheListofIncentiveObjectsfortheReservationundertheStockOptionIncentivePlan(PhaseI) |
| 2021-010 | 19February2021 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofJanuary2021 |
| 2021-011 | 3March2021 | AnnouncementontheDuePaymentof2020PhaseIIISuper&Short-termCommercialPaper |
| 2021-012 | 6March2021 | AnnouncementonResignationofDirector |
| 2021-013 | 6March2021 | AnnouncementonCompletionoftheGrantofStockOption(theReserved)undertheStockOptionIncentivePlan(PhaseI)oftheCompany |
| 2021-014 | 16March2021 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofFebruary2021 |
| 2021-015 | 19March2021 | ReminderoftheIssuanceof2021PhaseIISuper-short-termFinancingBonds |
| 2021-016 | 24March2021 | AnnouncementonIssueResultsof2021PhaseIISuper-short-termFinancingBonds |
| 2021-017 | 31March2021 | AnnouncementonResolutionsofthe3rdMeetingofthe10thBoardofDirectors |
| 2021-018 | 31March2021 | AnnouncementonResolutionsofthe3rdMeetingofthe10thSupervisoryCommittee |
| 2021-019 | 31March2021 | Announcementon2020ProfitDistributionPlan |
| 2021-020 | 31March2021 | Abstractof2020AnnualReport(ChineseandEnglishVersions) |
| 2021-021 | 31March2021 | AnnouncementontheConfirmationoftheContinuingRelated-PartyTransactionsin2020andtheEstimationofSuchTransactionsin2021 |
| 2021-022 | 31March2021 | AnnouncementontheRelated-PartyTransactionRegardingMakingDepositsinandObtainingLoansfromChinaMerchantsBankin2021 |
| 2021-023 | 31March2021 |
| 2021-024 | 31March2021 | SpecialReportonDepositandUsageofRaisedFundin2020 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| 2021-025 | 31March2021 | AnnouncementonReappointmentofAccountingFirmin2021 |
| 2021-026 | 31March2021 | AnnouncementonBy-electionofDirector |
| 2021-027 | 31March2021 | AnnouncementontheDisclosureofthe2020AnnualResultsbytheMajority-OwnedSubsidiary |
| 2021-028 | 31March2021 | AnnouncementontheOnlineInvestorCommunicationonthe2020AnnualResultstoBeHeld |
| 2021-029 | 13April2021 | ReminderoftheIssuanceof2021PhaseIMediumTermNotes |
| 2021-030 | 14April2021 | AnnouncementonResolutionsofthe2ndSpecialMeetingofthe10thBoardofDirectorsin2021 |
| 2021-031 | 14April2021 | AnnouncementonAppointmentofSecretaryoftheBoard |
| 2021-032 | 15April2021 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofMarch2021 |
| 2021-033 | 15April2021 | 2021FirstQuarterPerformanceForecast |
| 2021-034 | 20April2021 | AnnouncementonIssueResultsof2021PhaseIMediumTermNotes |
| 2021-035 | 23April2021 | AnnouncementontheDuePaymentof2021PhaseISuper&Short-termCommercialPaper |
| 2021-036 | 30April2021 | AnnouncementonResolutionsofthe3rdSpecialMeetingofthe10thBoardofDirectorsin2021 |
| 2021-037 | 30April2021 | TheTextoftheFirstQuarterReport2021(ChineseandEnglishVersions) |
| 2021-038 | 30April2021 | AnnouncementonRelated-PartyTransactionregardingConductingEntrustedWealthManagementwithSelf-OwnedIdleFunds |
| 2021-039 | 30April2021 | AnnouncementonAdjustmentofProvidingFinancialAidbyMajority-ownedSubsidiaries |
| 2021-040 | 30April2021 | NoticeonConveningthe2020AnnualGeneralMeeting |
| 2021-041 | 7May2021 | ReminderofConveningthe2020AnnualGeneralMeeting |
| 2021-042 | 15May2021 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofApril2021 |
| 2021-043 | 18May2021 | AnnouncementonResolutionsofthe4thSpecialMeetingofthe10thBoardofDirectorsin2021 |
| 2021-044 | 18May2021 | AnnouncementonAppointmentofChiefFinancialOfficerandViceGeneralManager |
| 2021-045 | 18May2021 | AnnouncementonResignationofIndependentDirectorandBy-electionofIndependentDirector |
| 2021-046 | 18May2021 | AnnouncementonAddingaImpromptuProposalforthe2020AnnualGeneralMeetingandtheSupplementaryNoticeThereof |
| 2021-047 | 29May2021 | AnnouncementonResolutionsofthe2020AnnualGeneralMeeting |
| 2021-048 | 4June2021 | ReminderoftheIssuanceof2021PhaseIIISuper-short-termFinancingBonds |
| 2021-049 | 8June2021 | AnnouncementonIssueResultsof2021PhaseIIISuper-short-termFinancingBonds |
| 2021-050 | 16June2021 | AnnouncementonVoluntaryInformationDisclosureofBusinessVolumeDataofMay2021 |
2.ProgressoftheInternalControlWorkAccordingtotherequirementsofBasicRulesforEnterpriseInternalControlandrelevantregulations,theinternalcontrolworkcarriedoutbytheCompanyduringtheReportingPeriodisasfollows:
(1)Intermsofconstructionandevaluationofinternalcontrolsystem,theCompanycontinuedtopromotethebuildingofCMPort'sinternalcontrolsystemandachievedthegoaloffullcoverageof
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
internalcontrolintheCompany.Italsocarriedouttheevaluationofinternalcontrolsystem,andappraisedandreportedtheworkofsubordinateunitsonaquarterlybasis.Inthefirsthalfof2021,theCompanyconductedthesupervisionandinspectiononinternalcontrolofthreeinstitutionsasscheduled.
(2)Inrespectofcomprehensiveriskmanagement,theCompanynormalizedthetrackingofmajorriskmitigation,establishedaquantitativemonitoringmodeformajorrisks,andappliedrelevantindicatorstoidentifyandassessrisks.TheCompanyfurtherimprovedtheriskmanagementandcontrolwithmeasuressuchasoptimizingtheriskpreferenceindexsystem,enhancingthequantitativemanagementofoverseasrisks,strengtheningtheearlywarningsystemforcustomercreditrisksanddevelopingkeyriskmonitoring,etc.
3.CommunicationswiththeInvestmentCommunitysuchasResearches,InquiriesandInterviews
(1)DuringtheReportingPeriod
| Date | Place | Wayofcommunication | Typeofcommunicationparty | Objectofcommunication | Indextobasicinformationofresearches |
| 22January2021 | ChinaMerchantsPortBuilding | One-on-onemeeting | Institution | OrientSecurities | Maindiscussions:thebasicconditionofoperations,investmentsmadeandthefinancialconditionoftheCompany;Materialsprovided:NoneIndex:SZSEEasyIR(http://irm.cninfo.com.cn/ircs/index) |
| 31March2021 | ChinaMerchantsPortBuilding | Teleconferencing | Institution | ChangjiangSecurities,CICC,IndustrialSecurities,GuotaiJunanSecurities,ChinaMerchantsSecurities,GuosenSecurities,GoldenEagleFund,PingAnCapital,HwabaoWPFund,YinhuaFund,CICCCapitalManagement,GreenCourtCapital,HighGearCapital,FangyuanTiancheng,RongyuanDingfengAssetManagement,PanpeiInvestment,HonghuVentureCapital,YongAnInsurance,BeijingOptimusPrimeInvestmentManagementCo.,Ltd. | |
| 25May2021 | ChinaMerchantsPortBuilding | One-on-onemeeting | Institution | HuaChuangSecurities,CICC | |
| 1January2021to30June2021 | ChinaMerchants | Byphone,or | Individual | Individualinvestors |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| PortBuilding | writteninquiry(theEasyIRplatformofSZSEoremail) | |||
| Timesofcommunications | 49 | |||
| Numberofinstitutionscommunicatedwith | 22 | |||
| Numberofindividualscommunicatedwith | 46 | |||
| Numberofothercommunicationparties | 0 | |||
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | No | |||
(2)Period-endtoDisclosureDate
| Date | Place | Wayofcommunication | Typeofcommunicationparty | Objectofcommunication | Indextobasicinformationofresearches |
| From1July2021to31August2021 | ChinaMerchantsPortBuilding | Byphone,orwritteninquiry(theEasyIRplatformofSZSEoremail) | Individual | Individualinvestors | Maindiscussions:thebasicconditionofoperations,investmentsmadeandthefinancialconditionoftheCompany;Materialsprovided:NoneIndex:SZSEEasyIR(http://irm.cninfo.com.cn/ircs/index) |
| Timesofcommunications | 15 | ||||
| Numberofinstitutionscommunicatedwith | 0 | ||||
| Numberofindividualscommunicatedwith | 15 | ||||
| Numberofothercommunicationparties | 0 | ||||
| Tip-offsorleakagesofsubstantialsupposedly-confidentialinformationduringcommunications | No | ||||
XIVSignificantEventsofSubsidiariesOn30March2021,theCompany'smajority-ownedsubsidiaryCMPortHoldings(00144.HK)announcedthatitwoulddistributeintheformofscripdividendthefinaldividendfortheyear
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
ended31December2020,equivalenttoHKD0.51perordinaryshareofCMPortHoldings,totheshareholdersofrecordon9June2021.Theshareholdersmaychooseotherwisetoreceivethefinaldividendincashinlieuofallorpartsoftheequityinscripdividend.TheCompanyheld1,532,248,957ordinarysharesofCMPortHoldings,accountingfor41.85%ofitstotalshares.TheCompanyhaschosentocollectthedividendintheformofscripdividend.Thus,itobtained68,862,087ordinarysharesofCMPortHoldings,withitsshareholdinginCMPortHoldingsincreasingto1,601,111,044shares(representingastakeof42.77%).
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
PartVIIShareChangesandShareholderInformation
IShareChanges
1.ShareChanges
Unit:share
| Before | Increase/decreaseintheReportingPeriod(+/-) | After | |||||||
| Shares | Percentage(%) | Newissues | Sharesasdividendconvertedfromprofit | Sharesasdividendconvertedfromcapitalreserves | Other | Subtotal | Shares | Percentage(%) | |
| I.Restrictedshares | 1,148,658,144 | 59.75% | 0 | 0 | 0 | -2,130 | -2,130 | 1,148,656,014 | 59.75% |
| 1.Sharesheldbystate | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 2.Sharesheldbystate-ownedlegalperson | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 3.Sharesheldbyotherdomesticinvestors | 9,496 | 0.00% | 0 | 0 | 0 | -2,130 | -2,130 | 7,366 | 0.00% |
| Including:Sharesheldbydomesticlegalperson | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| Sharesheldbydomesticnaturalperson | 9,496 | 0.00% | 0 | 0 | 0 | -2,130 | -2,130 | 7,366 | 0.00% |
| 4.Sharesheldbyforeigninvestors | 1,148,648,648 | 59.75% | 0 | 0 | 0 | 0 | 0 | 1,148,648,648 | 59.75% |
| Including:Sharesheldbyforeignlegalperson | 1,148,648,648 | 59.75% | 0 | 0 | 0 | 0 | 0 | 1,148,648,648 | 59.75% |
| Sharesheldbyforeignnaturalperson | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| II. | 773,706,980 | 40.25% | 0 | 0 | 0 | 2,130 | 2,130 | 773,709,110 | 40.25% |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| Unrestrictedshares | |||||||||
| 1.RMBordinaryshares | 593,820,070 | 30.89% | 0 | 0 | 0 | 0 | 0 | 593,820,070 | 30.89% |
| 2.Domesticallylistedforeignshares | 179,886,910 | 9.36% | 0 | 0 | 0 | 2,130 | 2,130 | 179,889,040 | 9.36% |
| 3.Overseaslistedforeignshares | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| 4.Other | 0 | 0.00% | 0 | 0 | 0 | 0 | 0 | 0 | 0.00% |
| III.Totalshares | 1,922,365,124 | 100.00% | 0 | 0 | 0 | 0 | 0 | 1,922,365,124 | 100.00% |
Reasonsforthesharechanges:
Duringthereportingperiod,changesinrestrictedsharesheldbythethenseniormanagement.Approvalofthesharechanges:
□Applicable√NotapplicableTransferofshareownership:
□Applicable√NotapplicableProgressonanysharerepurchase:
□Applicable√NotapplicableProgressonreducingtherepurchasedsharesbymeansofcentralizedbidding:
□Applicable√NotapplicableEffectsofthesharechangesonthebasicanddilutedearningspershare,equitypershareattributabletotheCompany’sordinaryshareholdersandotherfinancialindicatorsoftheprioryearandtheprioraccountingperiod,respectively:
□Applicable√NotapplicableOtherinformationthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatortobedisclosed:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
Unit:share
| Nameofshareholders | Numberofrestrictedsharesattheperiod-begin | Numberofreleasedrestrictedshares | Numberofincreasedrestrictedshares | Numberofrestrictedsharesattheperiod-end | Reasonforrestriction | Dateofrestrictionrelease |
| ChinaMerchantsPortInvestmentDevelopmentCompanyLimited | 1,148,648,648 | 0 | 0 | 1,148,648,648 | Accordingtorelevantlawsandregulationsandtheshareholdercommitment | June2022 |
| ZhengShaoping | 9,496 | 2,130 | 0 | 7,366 | AccordingtotheArticlesofAssociationandtherelevantlaws | November2023 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| andregulations | ||||||
| Total | 1,148,658,144 | 2,130 | 0 | 1,148,656,014 | -- | -- |
IIIssuanceandListingofSecurities
□Applicable√NotapplicableIIIShareholdersandTheirHoldingsasatthePeriod-End
Unit:share
| Numberofordinaryshareholdersattheperiod-end | 31,810 | Numberofpreferredshareholderswithresumedvotingrightsattheperiod-end(ifany) | 0 | |||||
| 5%orgreaterordinaryshareholdersortop10ordinaryshareholders | ||||||||
| Nameofshareholder | Natureofshareholder | Shareholdingpercentage | Totalordinarysharesheldattheperiod-end | Increase/decreaseintheReportingPeriod | Restrictedordinarysharesheld | Unrestrictedordinarysharesheld | Sharesinpledge,markedorfrozen | |
| CHINAMERCHANTSPORTINVESTMENTDEVELOPMENTCOMPANYLIMITED | Foreignlegalperson | 59.75% | 1,148,648,648 | 0 | 1,148,648,648 | 0 | 0 | |
| CHINAMERCHANTSGANGTONGDEVELOPMENT(SHENZHEN)CO.,LTD. | State-ownedlegalperson | 19.29% | 370,878,000 | 0 | 0 | 370,878,000 | 0 | |
| SHENZHENINFRASTRUCTUREINVESTMENTFUND-SHENZHENINFRASTRUCTUREINVESTMENTFUNDPARTNERSHIP(LIMITEDPARTNERSHIP) | Funds,wealthmanagementproducts,etc. | 3.37% | 64,850,182 | 0 | 0 | 64,850,182 | 0 | |
| CHINA-AFRICADEVELOPMENTFUND | State-ownedlegalperson | 3.33% | 64,102,564 | 0 | 0 | 64,102,564 | 0 | |
| BROADFORDGLOBALLIMITED | State-ownedlegalperson | 2.88% | 55,314,208 | 0 | 0 | 55,314,208 | 0 | |
| HONGKONGSECURITIESCLEARINGCOMPANYLTD. | Foreignlegalperson | 0.24% | 4,523,430 | 1,815,529 | 0 | 4,523,430 | Unknown | |
| CHINAMERCHANTSSECURITIES(HK)CO.,LTD. | State-ownedlegalperson | 0.14% | 2,693,355 | 87,000 | 0 | 2,693,355 | Unknown | |
| ARROWSTREETEMERGINGMARKETALPHAEXTENSIONTRUSTFUND | Foreignlegalperson | 0.12% | 2,247,991 | 1,328,401 | 0 | 2,247,991 | Unknown | |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| MAISHUQING | Domesticnaturalperson | 0.11% | 2,129,247 | 0 | 0 | 2,129,247 | Unknown | ||
| ZHUHUI | Domesticnaturalperson | 0.09% | 1,807,526 | 1,807,526 | 0 | 1,807,526 | Unknown | ||
| Strategicinvestorsorgenerallegalpersonbecomingtop-tenordinaryshareholdersduetoplacingofnewshares(ifany) | N/A | ||||||||
| Relatedoracting-in-concertpartiesamongtheshareholdersabove | ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.isamajority-ownedsubsidiaryofBroadfordGlobalLimited,andBroadfordGlobalLimitedisthecontrollingshareholderofChinaMerchantsPortInvestmentDevelopmentCompanyLimited.TheCompanydoesnotknowwhethertheotherunrestrictedshareholdersarerelatedpartiesornot. | ||||||||
| Aboveshareholdersinvolvedinentrusting/beingentrustedandgivingupvotingrights | None | ||||||||
| Specialaccountforsharerepurchases(ifany)amongthetop10shareholders(seenote11) | N/A | ||||||||
| Top10unrestrictedordinaryshareholders | |||||||||
| Nameofshareholder | Unrestrictedordinarysharesheldattheperiod-end | Sharesbytype | |||||||
| Type | Shares | ||||||||
| CHINAMERCHANTSGANGTONGDEVELOPMENT(SHENZHEN)CO.,LTD. | 370,878,000 | RMBordinaryshare | 370,878,000 | ||||||
| SHENZHENINFRASTRUCTUREINVESTMENTFUND-SHENZHENINFRASTRUCTUREINVESTMENTFUNDPARTNERSHIP(LIMITEDPARTNERSHIP) | 64,850,182 | RMBordinaryshare | 64,850,182 | ||||||
| CHINA-AFRICADEVELOPMENTFUND | 64,102,564 | RMBordinaryshare | 64,102,564 | ||||||
| BROADFORDGLOBALLIMITED | 55,314,208 | Domesticallylistedforeignshare | 55,314,208 | ||||||
| HONGKONGSECURITIESCLEARINGCOMPANYLTD. | 4,523,430 | RMBordinaryshare | 4,523,430 | ||||||
| CHINAMERCHANTSSECURITIES(HK)CO.,LTD. | 2,693,355 | Domesticallylistedforeignshare | 2,693,355 | ||||||
| ARROWSTREETEMERGINGMARKETALPHAEXTENSIONTRUSTFUND | 2,247,991 | Domesticallylistedforeignshare | 2,247,991 | ||||||
| MAISHUQING | 2,129,247 | RMBordinaryshare | 2,129,247 | ||||||
| ZHUHUI | 1,807,526 | RMBordinaryshare | 1,807,526 | ||||||
| SHENHUAILING | 1,630,749 | Domesticallylistedforeignshare | 1,630,749 | ||||||
| Relatedoracting-in-concertpartiesamongtop10unrestrictedordinaryshareholders,aswellasbetweentop10unrestrictedordinaryshareholdersandtop10ordinaryshareholders | ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.isamajority-ownedsubsidiaryofBroadfordGlobalLimited.TheCompanydoesnotknowwhethertheotherunrestrictedshareholdersarerelatedpartiesornot. | ||||||||
| Top10ordinaryshareholdersinvolvedinsecuritiesmargintrading(ifany) | N/A | ||||||||
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
Indicatebytickmarkwhetheranyofthetop10ordinaryshareholdersorthetop10unrestrictedordinaryshareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yes√NoNosuchcasesintheReportingPeriod.IVChangeinShareholdingsofDirectors,SupervisorsandSeniorManagement
| Name | Officetitle | Incumbent/Former | Beginningshareholding(share) | IncreaseintheReportingPeriod(share) | DecreaseintheReportingPeriod(share) | Endingshareholding(share) | Beginningrestrictedsharesgranted(share) | RestrictedsharesgrantedduringtheReportingPeriod(share) | Endingrestrictedsharesgranted(share) |
| DengRenjie | ChairmanoftheBoard | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| YanShuai | Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LiuWeiwu | Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SongDexing | Director | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| GaoPing | Independentdirector | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| ZhengYongkuan | Independentdirector | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LiQi | Independentdirector | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| HuQin | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| YangYuntao | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| GongMan | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| XuJia | Supervisor | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| WangXiufeng | CEO | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| TuXiaoping | CFO | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LuYongxin | ViceGM | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LiYubin | ViceGMandSecretaryoftheBoard | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| ZhangYiming | ViceGM | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| XuSong | ViceGM | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LiuLibing | GeneralCounsel | Incumbent | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| BaiJingtao | FormerViceChairman,CEO | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| SuJian | FormerDirector | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| ZhangYi | FormerDirector,COO,GM | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| WangZhenmin | FormerIndependentdirector | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| LiuYingjie | FormerChairmanoftheSupervisoryCommittee | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| ZhengShaoping | FormerViceGM | Former | 9,821 | 0 | 0 | 9,821 | 0 | 0 | 0 |
| HuangChuanjing | FormerViceGMandFormerSecretaryoftheBoard | Former | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Total | -- | -- | 9,821 | 0 | 0 | 9,821 | 0 | 0 | 0 |
VChangeoftheControllingShareholderortheDeFactoControllerChangeofthecontrollingshareholderintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.ChangeofthedefactocontrollerintheReportingPeriod
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
PartVIIIPreferenceShares
□Applicable√NotapplicableNopreferencesharesintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
PartIXBonds
IEnterpriseBonds
□Applicable√NotapplicableNoenterprisebondsintheReportingPeriod.IICorporateBonds
1.BasicInformationoftheCorporateBonds
| Name | Abbr. | Code | Dateofissuance | Valuedate | Maturity | Bondsbalance(RMB) | Interestrate | Wayofredemption | Tradingplace |
| 2020PublicOfferingofCorporateBondsofChinaMerchantsPortGroupCo.,Ltd.(forqualifiedinvestors)(PhaseI) | 20CMPort01 | 149170 | 7July2020 | 7July2020 | 8July2023 | 2,000,000,000.00 | 3.36% | Simpleinterestisadoptedandcalculatedbyyear.Nocompoundinterestiscalculated.Interestsarepaidonceeveryyearandprincipalspaidinlumpsumatmaturity.Inthelastinstallment,theinterestsarepaidtogetherwithprincipalrepayment. | ShenzhenStockExchange |
| Appropriatearrangementoftheinvestors(ifany) | TheCompany'sbondsarepubliclyissuedtoeligibleinvestorswhocomplywiththeMeasuresforIssuanceandTradingofCorporateBondsandhaveopenedaneligibleA-sharesecuritiesaccountwithShenzhenBranchofChinaSecuritiesDepositoryandClearingCo.,Ltd.(CSDC). | ||||||||
| Applicabletradingmechanism | BilaterallistingtransactionsthroughthecentralizedbiddingsystemofShenzhenStockExchangeandthecomprehensiveagreementtransactionsplatform | ||||||||
| Riskofterminationoflistingtransactions(ifany)andcountermeasures | No | ||||||||
Overduebonds
□Applicable√Notapplicable
2.TheTriggerandExecutionoftheOptionClauseoftheIssuersorInvestorsandtheInvestorProtectionClause
□Applicable√Notapplicable
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
3.AdjustmentofCreditRatingResultsduringtheReportingPeriod
□Applicable√Notapplicable
4.ExecutionandChangesofGuarantee,RepaymentPlanandOtherRepaymentGuaranteeMeasuresaswellasInfluenceonEquityofBondInvestorsduringtheReportingPeriod
□Applicable√NotapplicableIIIDebtFinancingInstrumentsofNon-financialEnterprises
1.BasicInformationofDebtFinancingInstrumentsofaNon-financialEnterprise
| Name | Abbr. | Code | Dateofissuance | Valuedate | Maturity | Bondsbalance(RMB’00,000,000) | Interestrate(%) | Wayofredemption | Tradingplace |
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseIV2021) | 21CMPortSCP004 | 012102633.IB | 19July2021 | 20July2021 | 18October2021 | 10 | 2.3 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseIII2021) | 21CMPortSCP003 | 012102083.IB | 4June2021 | 7June2021 | 4December2021 | 10 | 2.55 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
| Medium-termNotesofChinaMerchantsPortGroupCo.,Ltd.(PhaseI2021) | 21CMPortMTN001 | 102100703.IB | 14April2021 | 16April2021 | 16April2024 | 20 | 3.52 | Interestspaidonceeveryyearandprincipalspaidinlumpsumontheredemptiondate | Interbankbondmarket |
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseII2021) | 21CMPortSCP002 | 012101135.IB | 19March2021 | 22March2021 | 18September2021 | 10 | 2.73 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseI2021) | 21CMPortSCP001 | 012100333.IB | 21January2021 | 22January2021 | 22April2021 | 0 | 2.3 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseIV2020) | 20CMPortSCP004 | 012003945.IB | 12November2020 | 13November2020 | 12May2021 | 0 | 2.5 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
| Super-short-termCommercialPapersofChinaMerchantsPortGroupCo.,Ltd.(PhaseIII2020) | 20CMPortSCP003 | 012002045.IB | 3June2020 | 5June2020 | 2March2021 | 0 | 1.99 | Principalsandinterestpaidinlumpsumatmaturity | Interbankbondmarket |
| Appropriatearrangementoftheinvestors(ifany) | Notapplicable | ||||||||
| Applicabletradingmechanism | Inquiry | ||||||||
| Riskofterminationoflistingtransactions(ifany)andcountermeasures | None | ||||||||
Maturedbondsunredeemed
□Applicable√Notapplicable
2.TriggeringandImplementationofIssuerorInvestorOptionClausesandInvestorProtectionClauses
□Applicable√Notapplicable
3.CreditRatingAdjustmentsduringtheReportingPeriod□Applicable√Notapplicable
4.ImplementationandChangesofGuarantees,RepaymentPlanandOtherRepaymentGuaranteeMeasuresduringtheReportingPeriod,andtheirImpactontheEquityOwnershipofbondholdersDuringtheReportingPeriod,theCompany'screditenhancementmechanismforexistingdebtfinancinginstrumentsremainedunchanged.Therepaymentplanandotherrepaymentguaranteemeasuresdidnotundergosignificantchanges.Therewasnoadverseimpactontheequityownershipofdebtfinancinginstrumentholders.IVConvertibleCorporateBonds
□Applicable√NotapplicableNosuchcasesintheReportingPeriod.
ChinaMerchantsPortGroupCo.,Ltd.InterimReport2021
VLossesofScopeofConsolidatedFinancialStatementsduringtheReportingPeriodExceeding10%ofNetAssetsupthePeriod-endofLastYear
□Applicable√NotapplicableVITheMajorAccountingDataandtheFinancialIndicatorsoftheRecent2YearsoftheCompanyupthePeriod-end
Unit:RMB’0,000
| Item | 30June2021 | 30June2020 | Increase/decrease |
| Currentratio | 78.89% | 83.48% | -4.59% |
| Debt/assetratio | 35.82% | 37.29% | -1.47% |
| Quickratio | 77.98% | 82.56% | -4.58% |
| H12021 | H12020 | Increase/decrease | |
| Netprofitafterdeductingnon-recurringprofitorloss | 164,469.61 | 54,408.54 | 202.29% |
| Debt/EBITDAratio | 12.09% | 7.68% | 4.41% |
| Interestcover(times) | 5.24 | 2.25 | 132.89% |
| Cash-to-interestcover(times) | 4.90 | 3.5 | 40.00% |
| EBITDA-to-interestcover(times) | 7.80 | 4.70 | 65.96% |
| Loanrepaymentrate | 100.00% | 100.00% | - |
| Interestcoverage | 100.00% | 100.00% | - |
PartXFinancialStatementsIIndependentAuditor’sReportTheseinterimfinancialstatementshavenotbeenauditedbyanindependentauditor.IIFinancialStatementsSeeattached.
WangXiufengLegalrepresentativeofChinaMerchantsPortGroupCo.,Ltd.
Dated31August2021
CHINAMERCHANTSPORTGROUPCO.,LTD.FINANCIALSTATEMENTSFORTHEPERIODFROM1JANUARYTO30JUNE2021
CHINAMERCHANTSPORTGROUPCO.,LTD.FINANCIALSTATEMENTSFORTHEPERIODFROM1JANUARYTO30JUNE2021
CONTENTSPAGES
THECONSOLIDATEDANDCOMPANYBALANCESHEETS1-4THECONSOLIDATEDANDCOMPANYINCOMESTATEMENTS5-6THECONSOLIDATEDANDCOMPANYCASHFLOWSTATEMENTS7-8NOTESTOTHEFINANCIALSTATEMENTS9-148
CHINAMERCHANTSPORTGROUPCO.,LTD.
-1-
AT30JUNE2021
ConsolidatedBalanceSheet
Unit:RMB
| Item | Notes | 30/6/2021 | 31/12/2020(Restated) |
| Currentassets: | |||
| Cashandbankbalances | (V)1 | 9,379,373,597.24 | 11,918,423,758.71 |
| Held-for-tradingfinancialassets | (V)2 | 1,000,173,287.80 | 850,165,448.59 |
| Notesreceivable | (V)3 | 23,664,430.98 | 5,391,994.84 |
| Accountsreceivable | (V)4 | 1,853,240,938.06 | 1,393,349,417.02 |
| Accountsreceivablefinancing | (V)5 | 272,889,319.83 | 217,449,966.41 |
| Prepayments | (V)6 | 86,414,385.31 | 51,217,870.43 |
| Otherreceivables | (V)7 | 4,580,706,082.69 | 3,561,292,313.98 |
| Inventories | (V)8 | 210,008,947.15 | 214,823,976.30 |
| Assetsheldforsale | (V)9 | 337,442,757.28 | 337,442,757.28 |
| Non-currentassetsduewithinoneyear | (V)10 | 74,802,029.68 | 67,692,473.44 |
| Othercurrentassets | (V)11 | 821,942,182.54 | 434,074,085.16 |
| Totalcurrentassets | 18,640,657,958.56 | 19,051,324,062.16 | |
| Non-currentAssets: | |||
| Long-termreceivables | (V)12 | 3,566,899,467.01 | 3,887,949,993.10 |
| Long-termequityinvestments | (V)13 | 67,429,276,231.95 | 66,242,411,222.90 |
| Otherinvestmentsinequityinstruments | (V)14 | 182,017,057.74 | 181,467,057.74 |
| Othernon-currentfinancialassets | (V)15 | 863,909,085.69 | 910,807,452.56 |
| Investmentproperties | (V)16 | 5,465,221,390.32 | 5,558,755,275.21 |
| Fixedassets | (V)17 | 30,664,411,611.93 | 29,479,755,159.21 |
| Constructioninprogress | (V)18 | 4,082,810,291.73 | 5,381,430,606.18 |
| Right-of-useassets | (V)19 | 8,890,396,679.43 | 9,087,741,812.94 |
| Intangibleassets | (V)20 | 18,508,045,341.12 | 18,772,180,542.10 |
| Developmentexpenditure | (V)21 | 83,411,622.76 | 64,237,735.23 |
| Goodwill | (V)22 | 6,802,141,621.90 | 6,675,939,930.13 |
| Long-termprepaidexpenses | (V)23 | 865,843,967.74 | 874,999,735.91 |
| Deferredtaxassets | (V)24 | 490,392,389.90 | 420,857,076.76 |
| Othernon-currentassets | (V)25 | 2,165,898,294.28 | 2,138,468,683.64 |
| Totalnon-currentassets | 150,060,675,053.50 | 149,677,002,283.61 | |
| TOTALASSETS | 168,701,333,012.06 | 168,728,326,345.77 |
CHINAMERCHANTSPORTGROUPCO.,LTD.
-2-
AT30JUNE2021
ConsolidatedBalanceSheet-continued
Unit:RMB
| Item | Notes | 30/6/2021 | 31/12/2020(Restated) |
| Currentliabilities: | |||
| Short-termborrowings | (V)26 | 4,918,709,603.87 | 10,483,775,548.93 |
| Notespayable | (V)27 | 10,456,401.57 | 7,081,772.32 |
| Accountspayable | (V)28 | 745,241,136.72 | 607,972,699.59 |
| Receiptsinadvance | (V)29 | 20,592,775.04 | 39,510,127.90 |
| Contractliabilities | (V)30 | 188,322,263.74 | 157,442,109.67 |
| Employeebenefitspayable | (V)31 | 665,604,858.00 | 726,897,125.42 |
| Taxespayable | (V)32 | 2,305,150,402.37 | 2,370,258,689.99 |
| Otherpayables | (V)33 | 3,866,179,811.31 | 2,481,217,568.40 |
| Non-currentliabilitiesduewithinoneyear | (V)34 | 8,743,691,405.73 | 3,564,587,701.07 |
| Othercurrentliabilities | (V)35 | 2,165,517,831.24 | 2,383,668,985.94 |
| Totalcurrentliabilities | 23,629,466,489.59 | 22,822,412,329.23 | |
| Non-currentLiabilities: | |||
| Long-termborrowings | (V)36 | 7,334,778,282.88 | 7,406,322,693.81 |
| Bondspayable | (V)37 | 17,283,407,358.74 | 21,090,545,845.56 |
| Including:Preferredshares | - | - | |
| Perpetualbonds | - | - | |
| Leaseliabilities | (V)38 | 1,222,109,735.26 | 1,327,850,984.08 |
| Long-termpayables | (V)39 | 1,218,295,779.86 | 1,228,461,573.69 |
| Long-termemployeebenefitspayable | (V)40 | 490,799,539.52 | 507,714,699.46 |
| Provisions | (V)41 | 137,443,350.34 | 100,406,745.66 |
| Deferredincome | (V)42 | 1,091,904,196.33 | 1,113,180,823.99 |
| Deferredtaxliabilities | (V)24 | 4,491,273,249.00 | 4,347,553,142.73 |
| Othernon-currentliabilities | (V)43 | 3,525,608,365.56 | 2,982,220,894.03 |
| Totalnon-currentliabilities | 36,795,619,857.49 | 40,104,257,403.01 | |
| TOTALLIABILITIES | 60,425,086,347.08 | 62,926,669,732.24 | |
| SHAREHOLDERS'EQUITY: | |||
| Sharecapital | (V)44 | 1,922,365,124.00 | 1,922,365,124.00 |
| Capitalreserve | (V)45 | 22,955,923,020.10 | 22,839,598,324.56 |
| Othercomprehensiveincome | (V)46 | -916,798,522.86 | -826,697,303.06 |
| Specialreserve | (V)47 | 15,490,721.24 | 10,201,178.30 |
| Surplusreserve | (V)48 | 890,690,322.28 | 890,690,322.28 |
| Unappropriatedprofit | (V)49 | 13,275,656,697.75 | 12,329,120,098.70 |
| Totalshareholders'equityattributabletoequityholdersoftheparent | 38,143,327,362.51 | 37,165,277,744.78 | |
| Totalminorityinterests | 70,132,919,302.47 | 68,636,378,868.75 | |
| TOTALSHAREHOLDERS'EQUITY | 108,276,246,664.98 | 105,801,656,613.53 | |
| TOTALLIABILITIESANDSHAREHOLDERS'EQUITY | 168,701,333,012.06 | 168,728,326,345.77 |
Theaccompanyingnotesformpartofthefinancialstatements.Thefinancialstatementsonpages1to148weresignedbythefollowing:
WangXiufengTuXiaopingSunLiganLegalRepresentativeChiefFinancialOfficerHeadofAccountingDepartment
CHINAMERCHANTSPORTGROUPCO.,LTD.
-3-
AT30JUNE2021
BalanceSheetoftheCompany
Unit:RMB
| Item | Notes | 30/6/2021 | 31/12/2020 |
| CurrentAssets: | |||
| Cashandbankbalances | 1,232,631,940.36 | 753,590,556.77 | |
| Held-for-tradingfinancialassets | 500,000,000.00 | 800,000,000.00 | |
| Accountsreceivable | 293.35 | - | |
| Prepayments | 46,244.77 | 32,236.27 | |
| Otherreceivables | (XIV)1 | 1,999,190,308.29 | 1,102,712,752.04 |
| Othercurrentassets | 2,988,850.89 | 2,574,148.83 | |
| Totalcurrentassets | 3,734,857,637.66 | 2,658,909,693.91 | |
| Non-currentAssets: | |||
| Long-termreceivables | 8,608,371.77 | 8,667,950.38 | |
| Long-termequityinvestments | (XIV)2 | 37,473,353,363.21 | 37,236,798,123.55 |
| Otherinvestmentsinequityinstruments | 156,160,830.00 | 155,610,830.00 | |
| Fixedassets | 1,270,187.24 | 748,147.75 | |
| Constructioninprogress | 4,239,077.41 | 3,502,416.12 | |
| Intangibleassets | 55,323,370.73 | 56,760,723.98 | |
| Long-termprepaidexpenses | 1,397,920.79 | 1,572,660.89 | |
| Deferredtaxassets | 2,427,747.08 | 1,846,793.34 | |
| Totalnon-currentassets | 37,702,780,868.23 | 37,465,507,646.01 | |
| TOTALASSETS | 41,437,638,505.89 | 40,124,417,339.92 |
CHINAMERCHANTSPORTGROUPCO.,LTD.
-4-
AT30JUNE2021
BalanceSheetoftheCompany-continued
Unit:RMB
| Item | Notes | 30/6/2021 | 31/12/2020 |
| Currentliabilities: | |||
| Short-termborrowings | 1,000,888,889.00 | 2,174,486,432.93 | |
| Employeebenefitspayable | 28,598,142.54 | 27,085,844.52 | |
| Taxespayable | 129,047,384.38 | 208,459,425.46 | |
| Otherpayables | 1,176,834,631.06 | 460,457,238.16 | |
| Non-currentliabilitiesduewithinoneyear | 81,485,296.82 | 33,040,000.00 | |
| Othercurrentliabilities | 2,012,802,318.59 | 2,224,519,555.57 | |
| Totalcurrentliabilities | 4,429,656,662.39 | 5,128,048,496.64 | |
| Non-currentLiabilities: | |||
| Bondspayable | 4,000,000,000.00 | 2,000,000,000.00 | |
| Deferredtaxliabilities | 43,557,026.51 | 43,419,526.51 | |
| Totalnon-currentliabilities | 4,043,557,026.51 | 2,043,419,526.51 | |
| TOTALLIABILITIES | 8,473,213,688.90 | 7,171,468,023.15 | |
| SHAREHOLDERS'EQUITY | |||
| Sharecapital | 1,922,365,124.00 | 1,922,365,124.00 | |
| Capitalreserve | 27,600,679,342.67 | 27,591,847,402.73 | |
| Othercomprehensiveincome | 105,948,722.50 | 105,536,222.50 | |
| Surplusreserve | 890,690,322.28 | 890,690,322.28 | |
| Unappropriatedprofit | 2,444,741,305.54 | 2,442,510,245.26 | |
| TOTALSHAREHOLDERS'EQUITY | 32,964,424,816.99 | 32,952,949,316.77 | |
| TOTALLIABILITIESANDSHAREHOLDERS'EQUITY | 41,437,638,505.89 | 40,124,417,339.92 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-5-
FORTHEPERIODFROM1JANUARYTO30JUNE2021
ConsolidatedIncomeStatement
Unit:RMB
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod(Restated) |
| I.Operatingincome | (V)50 | 7,339,942,862.26 | 5,962,497,716.96 |
| Less:Operatingcosts | (V)50 | 4,198,451,164.27 | 3,743,190,504.14 |
| Taxesandlevies | (V)51 | 87,671,634.48 | 77,572,744.95 |
| Administrativeexpenses | (V)52 | 766,369,973.37 | 745,721,965.45 |
| Researchanddevelopmentexpenses | 98,344,411.25 | 71,988,081.92 | |
| Financialexpenses | (V)53 | 730,109,013.88 | 841,408,636.18 |
| Including:Interestexpenses | 892,510,549.76 | 997,965,862.47 | |
| Interestincome | 183,191,011.93 | 142,692,352.77 | |
| Add:Otherincome | (V)54 | 305,982,258.62 | 56,117,166.36 |
| Investmentincome | (V)55 | 3,609,743,591.59 | 1,504,609,268.47 |
| Including:Incomefrominvestmentsinassociatesandjointventures | (V)55 | 3,557,359,417.25 | 1,393,872,651.34 |
| Gainsfromchangesinfairvalue(Lossismarkedwith"-") | (V)56 | -488,532,866.45 | -295,735,653.30 |
| Gainsonimpairmentofcredit(Lossismarkedwith"-") | (V)57 | -2,586,332.20 | -3,583,778.71 |
| Gainsonimpairmentofassets(Lossismarkedwith"-") | (V)58 | - | 947,693.77 |
| Gainsondisposalofassets(Lossismarkedwith"-") | (V)59 | 9,432,717.92 | 560,256,383.38 |
| II.Operatingprofit | 4,893,036,034.49 | 2,305,226,864.29 | |
| Add:Non-operatingincome | (V)60 | 28,987,669.73 | 27,745,365.39 |
| Less:Non-operatingexpenses | (V)61 | 14,323,864.27 | 23,110,322.51 |
| III.Grossprofit | 4,907,699,839.95 | 2,309,861,907.17 | |
| Less:Incometaxexpenses | (V)62 | 643,438,595.12 | 513,167,463.70 |
| IV.Netprofit | 4,264,261,244.83 | 1,796,694,443.47 | |
| (I)Categorizationbycontinuityofoperation | |||
| 1.Netprofitofcontinuedoperation | 4,264,261,244.83 | 1,796,694,443.47 | |
| 2.Netprofitofdiscontinuedoperation | - | - | |
| (II)Categorizationbyattributionofownership | |||
| 1.Netprofitattributabletoshareholdersoftheparent | 1,677,035,346.17 | 632,292,086.16 | |
| 2.Profitorlossattributabletominorityshareholder | 2,587,225,898.66 | 1,164,402,357.31 | |
| V.Amountofothercomprehensivenetincomeaftertax | (V)46 | -314,186,364.19 | -1,105,459,189.10 |
| Amountofothercomprehensivenetincomeaftertaxattributabletoequityholdersoftheparent | -89,607,300.16 | -379,729,287.29 | |
| (I)Othercomprehensiveincomethatwillnotbereclassifiedtoprofitorloss | 228,315.37 | -1,463,343.44 | |
| 1.Othercomprehensiveincomeundertheequitymethodthatwillnotbereclassifiedtoprofitorloss | -184,184.63 | -1,350,843.44 | |
| 2.Fairvaluechangesofotherinvestmentsinequityinstruments | 412,500.00 | -112,500.00 | |
| (II)Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss | -89,835,615.53 | -378,265,943.85 | |
| 1.Othercomprehensiveincomeundertheequitymethodthatwillbereclassifiedtoprofitorloss | -23,133,723.56 | 12,154,545.52 | |
| 2.Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | -66,701,891.97 | -390,420,489.37 | |
| Amountofothercomprehensivenetincomeaftertaxattributabletominorityshareholders | -224,579,064.03 | -725,729,901.81 | |
| VI.Totalcomprehensiveincomeattributableto: | 3,950,074,880.64 | 691,235,254.37 | |
| Shareholdersoftheparent | 1,587,428,046.01 | 252,562,798.87 | |
| Minorityshareholders | 2,362,646,834.63 | 438,672,455.50 | |
| VII.Earningspershare | |||
| (I)Basicearningspershare | 0.87 | 0.33 | |
| (II)Dilutedearningspershare | 0.87 | 0.33 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-6-
FORTHEPERIODFROM1JANUARYTO30JUNE2021
IncomeStatementoftheCompany
Unit:RMB
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod |
| I.Operatingincome | (XIV)3 | 471,974.86 | 94,339.62 |
| Less:Operatingcosts | (XIV)3 | 1,132,979.75 | 1,132,979.82 |
| Administrativeexpenses | 62,053,671.27 | 56,541,697.34 | |
| Financialexpenses | 80,011,675.00 | 1,306,524.34 | |
| Including:Interestexpenses | 103,671,335.55 | 15,828,399.34 | |
| Interestincome | 26,740,035.75 | 17,871,242.91 | |
| Add:Otherincome | 122,335.30 | 355,292.70 | |
| Investmentincome | (XIV)4 | 1,005,277,395.49 | 1,326,631,915.23 |
| Including:Incomefrominvestmentsinassociatesandjointventures | (XIV)4 | 86,382,211.38 | 28,229,153.26 |
| Gainsfromchangesinfairvalue(Lossismarkedwith"-") | - | 12,306,522.15 | |
| II.Operatingprofit | 862,673,379.63 | 1,280,406,868.20 | |
| Add:Non-operatingincome | 424,555.92 | 5,000.00 | |
| III.Grossprofit | 863,097,935.55 | 1,280,411,868.20 | |
| Less:Incometaxexpenses | 130,368,128.15 | 174,535,694.16 | |
| IV.Netprofit | 732,729,807.40 | 1,105,876,174.04 | |
| V.Amountofothercomprehensivenetincomeaftertax | 412,500.00 | -112,500.00 | |
| (I)Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss | 412,500.00 | -112,500.00 | |
| 1.Changesasaresultofremeasurementofthenetdefinedbenefitplan | - | - | |
| 2.Othercomprehensiveincomeundertheequitymethodthatwillnotbereclassifiedtoprofitorloss | - | - | |
| 3.Fairvaluechangesofotherinvestmentsinequityinstruments | 412,500.00 | -112,500.00 | |
| (II)Othercomprehensiveincomethatwillbereclassifiedtoprofitorloss | - | - | |
| 1.Othercomprehensiveincomeundertheequitymethodthatwillbereclassifiedtoprofitorloss | - | - | |
| 2.Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | - | - | |
| VI.Totalcomprehensiveincome | 733,142,307.40 | 1,105,763,674.04 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-7-
FORTHEPERIODFROM1JANUARYTO30JUNE2021
ConsolidatedCashFlowStatement
Unit:RMB
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod(Restated) |
| I.CashFlowsfromOperatingActivities | |||
| Cashreceivedfromsalesofgoodsandrenderingofservices | 6,999,276,674.02 | 5,663,032,758.45 | |
| Refundsoftaxes | 85,780,705.21 | 14,275,811.60 | |
| Cashreceivedrelatingtootheroperatingactivities | (V)65(1) | 603,526,364.98 | 426,982,722.38 |
| Sub-totalofcashinflows | 7,688,583,744.21 | 6,104,291,292.43 | |
| Cashpaidforgoodspurchasedorservicesreceived | 1,903,206,790.90 | 1,626,411,856.74 | |
| Cashpaidtoandonbehalfofemployees | 1,709,301,832.87 | 1,480,656,394.52 | |
| Taxpayments | 733,071,668.17 | 566,177,888.65 | |
| Cashpaidrelatingtootheroperatingactivities | (V)65(2) | 408,043,044.31 | 373,303,949.44 |
| Sub-totalofcashoutflows | 4,753,623,336.25 | 4,046,550,089.35 | |
| NetCashFlowsfromOperatingActivities | (V)66(1) | 2,934,960,407.96 | 2,057,741,203.08 |
| II.CashFlowsfromInvestingActivities | |||
| Cashreceivedfromdisposalandrecoveryofinvestments | 3,630,000,000.00 | 2,541,647,276.82 | |
| Cashreceivedfrominvestmentincome | 1,520,388,115.39 | 243,248,600.44 | |
| Netcashreceivedfromdisposaloffixedassets,intangibleassetsandotherlong-termassets | 21,022,377.14 | 109,636,776.06 | |
| Cashreceivedrelatingtootherinvestingactivities | (V)65(3) | 355,653,171.58 | 509,787,186.59 |
| Sub-totalofcashinflows | 5,527,063,664.11 | 3,404,319,839.91 | |
| Cashpaidtoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets | 1,124,649,979.59 | 1,082,342,987.89 | |
| Cashpaidtoacquireinvestments | 4,337,300,451.86 | 7,181,906,008.80 | |
| Cashpaidrelatingtootherinvestingactivities | (V)65(4) | 11,284,899.93 | 3,009,770,070.13 |
| Sub-totalofcashoutflows | 5,473,235,331.38 | 11,274,019,066.82 | |
| NetCashFlowsfromInvestingActivities | 53,828,332.73 | -7,869,699,226.91 | |
| III.CashFlowsfromFinancingActivities | |||
| Cashreceivedfromborrowings | 3,694,414,917.83 | 13,298,279,106.51 | |
| Cashreceivedfromissueofbonds | 4,800,000,000.00 | 700,000,000.00 | |
| Sub-totalofcashinflows | 8,494,414,917.83 | 13,998,279,106.51 | |
| Repaymentsofborrowings | 13,053,373,996.07 | 6,724,017,083.73 | |
| Dividendspaid,profitdistributedorinterestpaid | 942,876,415.60 | 1,161,435,086.07 | |
| Including:Dividendspaid,profitdistributedtominorityshareholders. | - | 162,311,700.49 | |
| Cashpaidrelatingtootherfinancingactivities | (V)65(5) | 11,496,507.89 | 756,572,798.17 |
| Sub-totalofcashoutflows | 14,007,746,919.56 | 8,642,024,967.97 | |
| NetCashFlowsfromFinancingActivities | -5,513,332,001.73 | 5,356,254,138.54 | |
| IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents | -26,551,995.94 | -31,897,846.37 | |
| V.NetDecreaseinCashandCashEquivalents | -2,551,095,256.98 | -487,601,731.66 | |
| Add:OpeningBalanceofCashandCashEquivalents | (V)66(2) | 11,898,618,327.29 | 7,787,660,214.80 |
| VI.ClosingBalanceofCashandCashEquivalents | (V)66(2) | 9,347,523,070.31 | 7,300,058,483.14 |
Theaccompanyingnotesformpartofthefinancialstatements.
CHINAMERCHANTSPORTGROUPCO.,LTD.
-8-
FORTHEPERIODFROM1JANUARYTO30JUNE2021
CashFlowStatementoftheCompany
Unit:RMB
| Item | Notes | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod |
| I.CashFlowsfromOperatingActivities | |||
| Cashreceivedrelatingtootheroperatingactivities | 218,034,986.32 | 23,510,809.16 | |
| Sub-totalofcashinflows | 218,034,986.32 | 23,510,809.16 | |
| Cashpaidforgoodspurchasedandservicesreceived | 40,000.00 | - | |
| Cashpaidtoandonbehalfofemployees | 32,829,622.92 | 25,483,852.31 | |
| Taxpayments | 209,567,259.29 | 208,942,631.96 | |
| Cashpaidrelatingtootheroperatingactivities | 33,094,186.67 | 17,929,140.00 | |
| Sub-totalofcashoutflows | 275,531,068.88 | 252,355,624.27 | |
| NetCashFlowsfromOperatingActivities | -57,496,082.56 | -228,844,815.11 | |
| II.CashFlowsfromInvestingActivities: | |||
| Cashreceivedfromdisposalsandrecoveryofinvestments | 2,480,000,000.00 | 1,400,000,000.00 | |
| Cashreceivedfrominvestmentsincome | 293,098,915.83 | 184,352,981.91 | |
| Cashreceivedrelatingtoinvestingactivities | - | 222,500,000.00 | |
| Sub-totalofcashinflows | 2,773,098,915.83 | 1,806,852,981.91 | |
| Cashpaidtoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets | 1,732,237.00 | 600,000.00 | |
| Cashpaidforinvestments | 2,386,523,799.86 | 2,409,178,988.47 | |
| Cashpaidrelatingtootherinvestingactivities | 198,583,388.96 | 137,944,110.77 | |
| Sub-totalofcashoutflows | 2,586,839,425.82 | 2,547,723,099.24 | |
| NetCashFlowsfromInvestingActivities | 186,259,490.01 | -740,870,117.33 | |
| III.CashFlowsfromFinancingActivities: | |||
| Cashreceivedfromborrowings | 5,797,840,000.00 | 2,999,433,243.33 | |
| Cashreceivedrelatingtootherfinancingactivities | 25,000,000.00 | 544,400,000.00 | |
| Sub-totalofcashinflows | 5,822,840,000.00 | 3,543,833,243.33 | |
| Repaymentsofborrowings | 5,381,742,457.36 | 715,904,918.03 | |
| Dividendspaid,profitdistributedorinterestpaid | 89,771,518.67 | 619,875.00 | |
| Cashpaidrelatingtootherfinancingactivities | 982,254.76 | 721,400,000.00 | |
| Sub-totalofcashoutflows | 5,472,496,230.79 | 1,437,924,793.03 | |
| NetCashFlowsfromFinancingActivities | 350,343,769.21 | 2,105,908,450.30 | |
| IV.EffectofForeignExchangeRateChangesonCashandCashEquivalents | -65,793.07 | 27,149.74 | |
| V.NetIncreaseinCashandCashEquivalents | 479,041,383.59 | 1,136,220,667.60 | |
| Add:OpeningbalanceofCashandCashEquivalents | 753,590,556.77 | 690,685,211.42 | |
| VI.ClosingBalanceofCashandCashEquivalents | 1,232,631,940.36 | 1,826,905,879.02 |
Theaccompanyingnotesformpartofthefinancialstatements.
-9-
I.GENERALINFORMATIONOFTHECOMPANY
ChinaMerchantsPortGroupCompanyLimitedwasastocklimitedcompanyincorporatedinShenzhen,GuangdongProvince,on16January1993.TheheadquartersoftheCompanyislocatedinShenzhen,GuangdongProvince.TheCompanyanditssubsidiaries(collectivelythe"Group")areprincipallyengagedintherenderingofportservice,bondedlogisticsservicesandotherbusinessessuchaspropertydevelopmentandinvestment.TheCompany'sandconsolidatedfinancialstatementshavebeenapprovedbytheBoardofDirectorson30August2021.SeeNote(VII)"Equityinotherentities"fordetailsofthescopeofconsolidatedfinancialstatementsinthecurrentperiod.SeeNote(VI)"Changesinscopeofconsolidation"fordetailsofchangesinthescopeofconsolidatedfinancialstatementsinthecurrentperiod.II.BASISOFPREPARATIONOFFINANCIALSTATEMENTS
BasisofpreparationoffinancialstatementsTheGrouphasadoptedtheAccountingStandardsforBusinessEnterprises("ASBE")issuedbytheMinistryofFinance("MoF").Inaddition,theGrouphasdisclosedrelevantfinancialinformationinaccordancewithInformationDisclosureandPresentationRulesforCompaniesOfferingSecuritiestothePublicNo.15-GeneralProvisionsonFinancialReporting(Revisedin2014).GoingconcernAsat30June2021,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsofRMB4,988,808,531.03.On30June2021,theGrouphadavailableandunusedlineofcreditamountingtoRMB44,924,971,453.51,whichisgreaterthanthebalanceofthenetcurrentliabilities.TheGroupcanobtainfinancialsupportfromtheavailablelineofcreditwhenneeded.Therefore,thefinancialstatementshavebeenpreparedonagoingconcernbasis.BasisofaccountingandprincipleofmeasurementTheGrouphasadoptedtheaccrualbasisofaccounting.Exceptforcertainfinancialinstrumentswhicharemeasuredatfairvalue,theGroupadoptsthehistoricalcostastheprincipleofmeasurementofthefinancialstatements.Uponbeingrestructuredintoastockcompany,thefixedassetsandintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.Wherethehistoricalcostisadoptedasthemeasurementbasis,assetsarerecordedattheamountofcashorcashequivalentspaidorthefairvalueoftheconsiderationgiventoacquirethematthetimeoftheiracquisition.Liabilitiesarerecordedattheamountofproceedsorassetsreceivedor
-10-
thecontractualamountsforassumingthepresentobligation,or,attheamountsofcashorcashequivalentsexpectedtobepaidtosettletheliabilitiesinthenormalcourseofbusiness.
-11-
II.BASISOFPREPARATIONOFFINANCIALSTATEMENTS-continued
Basisofaccountingandprincipleofmeasurement-continuedFairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate,regardlessofwhetherthatpriceisdirectlyobservableorestimatedusingvaluationtechnique.Fairvaluemeasurementand/ordisclosureinthefinancialstatementsaredeterminedaccordingtotheabovebasis.FairvaluemeasurementsarecategorizedintoLevel1,2or3basedonthedegreetowhichtheinputstothefairvaluemeasurementsareobservableandthesignificanceoftheinputstothefairvaluemeasurementinitsentirety,whicharedescribedasfollows:
?Level1inputsareunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthat
theentitycanaccessatthemeasurementdate;?Level2inputsareinputs,otherthanquotedpricesincludedwithinLevel1,thatareobservablefortheassetorliability,eitherdirectlyorindirectly;and?Level3inputsareunobservableinputsfortheassetorliability.III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATESAllthefollowingsignificantaccountingpoliciesandaccountingestimatesarebasedonAccountingStandardsforBusinessEnterprises("ASBE").
1.StatementofcompliancewiththeASBEThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewiththeASBE,andpresenttrulyandcompletely,theCompany'sandconsolidatedfinancialpositionasof30June2021,andtheCompany'sandconsolidatedresultsofoperations,theCompany'sandconsolidatedshareholders'equityandcashflowsfortheperiodfrom1January2021to30June2021.
2.AccountingperiodTheGrouphasadoptedthecalendaryearasitsaccountingyear,e.g.from1Januaryto31December.
3.OperatingcycleAnoperatingcyclereferstotheperiodsincewhenanenterprisepurchasesassetsforprocessingpurposetilltherealizationofthoseassetsincashorcashequivalents.TheGroupareprincipallyengagedintherenderingofportservice,bondedlogisticsserviceandotherbusinesssuchaspropertydevelopmentandinvestmentwithanoperatingcycleofoneyear.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
4.FunctionalcurrencyRenminbi("RMB")isthecurrencyoftheprimaryeconomicenvironmentinwhichtheCompanyanditsdomesticsubsidiariesoperate.Therefore,theCompanyanditsdomesticsubsidiarieschooseRMBastheirfunctionalcurrency.TheCompany'ssubsidiarieschoosetheirfunctionalcurrencyonthebasisoftheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadoptsRMBtoprepareitsfinancialstatements.
5.Theaccountingtreatmentofbusinesscombinationsinvolvingornotinvolving
enterprisesundercommoncontrolBusinesscombinationsareclassifiedintobusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsnotinvolvingenterprisesundercommoncontrol.
5.1BusinesscombinationsinvolvingenterprisesundercommoncontrolAbusinesscombinationinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Assetsandliabilitiesobtainedshallbemeasuredattheirrespectivecarryingamountsasrecordedbythecombiningentitiesatthedateofthecombination.Thedifferencebetweenthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombinationisadjustedtothesharepremiumincapitalreserve.Ifthesharepremiumisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstretainedearnings.Coststhataredirectlyattributabletothecombinationarechargedtoprofitorlossintheperiodinwhichtheyareincurred.
5.2BusinesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwillAbusinesscombinationnotinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbeforeandafterthecombination.Thecostofcombinationistheaggregateofthefairvalues,attheacquisitiondate,oftheassetsgiven,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquire.Whereabusinesscombinationnotinvolvingenterprisesundercommoncontrolisachievedinstagesthatinvolvemultipletransactions,thecostofcombinationisthesumoftheconsiderationpaidattheacquisitiondateandthefairvalueattheacquisitiondateoftheacquirer'spreviouslyheldinterestintheacquiree.Theintermediaryexpenses(feesinrespectofauditing,legalservices,valuationandconsultancyservices,etc.)andotheradministrativeexpensesattributabletothebusinesscombinationarerecognizedinprofitorlossintheperiodswhentheyareincurred.
-13-
III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
5.Theaccountingtreatmentofbusinesscombinationsinvolvingornotinvolving
enterprisesundercommoncontrol-continued
5.2Businesscombinationsnotinvolvingenterprisesundercommoncontrolandgoodwill-continuedTheacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesacquiredbytheacquirerinabusinesscombinationthatmeettherecognitioncriteriashallbemeasuredatfairvalueattheacquisitiondate.Whenabusinesscombinationcontractprovidesfortheacquirer'srecoveryofconsiderationpreviouslypaidcontingentononeormultiplefutureevent(s),theGrouprecognizesthecontingentconsiderationprovidedinthecontractasanasset,aspartoftheconsiderationtransferredinthebusinesscombination,andincludesitinthecostofbusinesscombinationatthefairvalueattheacquisitiondate.Within12monthsaftertheacquisition,wherethecontingentconsiderationneedstobeadjustedasneworfurtherevidencesareobtainedinrespectofthecircumstancesexistedattheacquisitiondate,theadjustmentshallberecognizedandtheamountoriginallyrecognizedingoodwillornon-operatingincomeshallbeadjusted.AchangeinoradjustmenttothecontingentconsiderationunderothercircumstancesshallbeaccountedforinaccordancewithAccountingStandardforBusinessEnterpriseNo.22-FinancialInstruments:RecognitionandMeasurementandAccountingStandardforBusinessEnterprisesNo.13-Contingencies.Anychangeoradjustmentisincludedinprofitorlossforthecurrentperiod.Wherethecostofcombinationexceedstheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,thedifferenceistreatedasanassetandrecognizedasgoodwill,whichismeasuredatcostoninitialrecognition.Wherethecostofcombinationislessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerreassessesthemeasurementofthefairvaluesoftheacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesandmeasurementofthecostofcombination.Ifafterthatreassessment,thecostofcombinationisstilllessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerrecognizestheremainingdifferenceimmediatelyinprofitorlossforthecurrentperiod.Ifeitherthefairvaluesofidentifiableassets,liabilitiesandcontingentliabilitiesacquiredinacombinationorthecostofbusinesscombinationcanbedeterminedonlyprovisionallybytheendoftheperiodinwhichthebusinesscombinationwaseffected,theacquirerrecognizesandmeasuresthecombinationusingthoseprovisionalvalues.Anyadjustmentstothoseprovisionalvalueswithintwelvemonthsaftertheacquisitiondatearetreatedasiftheyhadbeenrecognizedandmeasuredontheacquisitiondate.Goodwillarisingonabusinesscombinationismeasuredatcostlessaccumulatedimpairmentlosses,andispresentedseparatelyintheconsolidatedfinancialstatements.
-14-
III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
6.Preparationofconsolidatedfinancialstatements
6.1PreparationofconsolidatedfinancialstatementsThescopeofconsolidationintheconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlexistswhentheinvestorhaspowerovertheinvestee;isexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytouseitspowerovertheinvesteetoaffectitsreturns.TheGroupreassesseswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechangesoftheaboveelementsofthedefinitionofcontrol.ConsolidationofasubsidiarybeginswhentheGroupobtainscontroloverthesubsidiariesandceaseswhentheGrouplosescontrolofthesubsidiary.ForasubsidiaryalreadydisposedofbytheGroup,theoperatingresultsandcashflowsbeforethedateofdisposal(thedatewhencontrolislost)areincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriate.Forsubsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesnotundercommoncontrol,theoperatingresultsandcashflowsfromtheacquisitiondate(thedatewhencontrolisobtained)areincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriate.Nomatterwhenthebusinesscombinationoccursinthereportingperiod,subsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrolorthepartybeingabsorbedundermergerbyabsorptionareincludedintheGroup'sscopeofconsolidationasiftheyhadbeenincludedinthescopeofconsolidationfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingparty.Theiroperatingresultsandcashflowsfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingpartyareincludedintheconsolidatedincomestatementandconsolidatedstatementofcashflows,asappropriate.ThesignificantaccountingpoliciesandaccountingperiodsadoptedbythesubsidiariesaredeterminedbasedontheuniformaccountingpoliciesandaccountingperiodssetoutbytheCompany.Wheretheaccountingpolicies/accountingperiodsadoptedbysubsidiariesareinconsistentwiththoseoftheCompany,appropriateadjustmentsaremadetothesubsidiaries'financialstatementsinaccordancewiththeaccountingpoliciesoftheCompany.Allsignificantintra-groupbalancesandtransactionsareeliminatedonconsolidation.
-15-
III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
6.Preparationofconsolidatedfinancialstatements-continued
6.1Preparationofconsolidatedfinancialstatements-continuedTheportionofsubsidiaries'equitythatisnotattributabletotheparentistreatedasminorityinterestsandpresentedas"minorityinterests"intheconsolidatedbalancesheetundershareholders'equity.Theportionofnetprofitsorlossesofsubsidiariesfortheperiodattributabletominorityinterestsispresentedas"minorityinterests"intheconsolidatedincomestatementunderthe"netprofit"lineitem.Whentheamountoflossfortheperiodattributabletotheminorityshareholdersofasubsidiaryexceedstheminorityshareholders'portionoftheopeningbalanceofshareholders'equityofthesubsidiary,theexcessamountisstillallocatedagainstminorityinterests.Acquisitionofminorityinterestsordisposalsofinterestsinasubsidiarythatdonotresultinthelossofcontroloverthesubsidiaryareaccountedforasequitytransactions.Thecarryingamountsoftheparent'sinterestsandminorityinterestsareadjustedtoreflectthechangesintheirrelativeinterestsinthesubsidiary.Thedifferencebetweentheamountbywhichtheminorityinterestsareadjustedandthefairvalueoftheconsiderationpaidorreceivedisadjustedtocapitalreserve.Ifthecapitalreserveisnotsufficienttoabsorbthedifference,theexcessareadjustedagainstretainedearnings.Forthestepwiseacquisitionofequityinteresttillacquiringcontrolafterafewtransactionsandleadingtobusinesscombinationnotinvolvingenterprisesundercommoncontrol,thisshouldbedealtwithbasedonwhetherthisbelongsto'packagedeal':ifitbelongsto'packagedeal',transactionswillbedealtastransactionstoacquirecontrol.Ifitdoesnotbelongto'packagedeal',transactionstoacquirecontrolonacquisitiondatewillbeunderaccountingtreatment,thefairvalueofacquirees'sharesheldbeforeacquisitiondatewillberevalued,andthedifferencebetweenfairvalueandbookvaluewillberecognizedinprofitorlossofthecurrentperiod;ifacquirees'sharesheldbeforeacquisitiondateinvolveinchangesofothercomprehensiveincomeandotherequityofownersunderequitymethod,thiswillbetransferredtoincomeofacquisitiondate.WhentheGrouplosescontroloverasubsidiaryduetodisposalofequityinvestmentorotherreasons,anyretainedinterestisremeasuredatitsfairvalueatthedatewhencontrolislost.Thedifferencebetween(i)theaggregateoftheconsiderationreceivedondisposalandthefairvalueofanyretainedinterestand(ii)theshareoftheformersubsidiary'snetassetscumulativelycalculatedfromtheacquisitiondateaccordingtotheoriginalproportionofownershipinterestsisrecognizedasinvestmentincomeintheperiodinwhichcontrolislost,andthegoodwillisoffsetaccordingly.Othercomprehensiveincomeassociatedwithinvestmentintheformersubsidiaryisreclassifiedtoinvestmentincomeintheperiodinwhichcontrolislost.
-16-
III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
6.Preparationofconsolidatedfinancialstatements-continued
6.1Preparationofconsolidatedfinancialstatements-continuedWhentheGrouplosescontrolofasubsidiaryintwoormorearrangements(transactions),termsandconditionsofthearrangements(transactions)andtheireconomiceffectsareconsidered.OneormoreofthefollowingindicatethattheGroupshallaccountforthemultiplearrangementsasa'packagedeal':(i)theyareenteredintoatthesametimeorincontemplationofeachother;(ii)theyformacompletetransactiondesignedtoachieveanoverallcommercialeffect;(iii)theoccurrenceofonetransactionisdependentontheoccurrenceofatleastoneothertransaction;(iv)onetransactionaloneisnoteconomicallyjustified,butitiseconomicallyjustifiedwhenconsideredtogetherwithothertransactions.Wherethetransactionsofdisposalofequityinvestmentsinasubsidiaryuntilthelossofcontrolareassessedasapackagedeal,thesetransactionsareaccountedforasonetransactionofdisposalofasubsidiarywithlossofcontrol.Beforelosingcontrol,thedifferenceofconsiderationreceivedondisposalandtheshareofnetassetsofthesubsidiarycontinuouslycalculatedfromacquisitiondateisrecognizedasothercomprehensiveincome.Whenlosingcontrol,thecumulatedothercomprehensiveincomeistransferredtoprofitorlossoftheperiodoflosingcontrol.Ifthetransactionsofdisposalofequityinvestmentsinasubsidiaryarenotassessedasapackagedeal,thesetransactionsareaccountedforasunrelatedtransactions.
7.TypesofjointarrangementsandtheaccountingtreatmentofjointoperationTherearetwotypesofjointarrangements-jointoperationsandjointventures.Theclassificationofjointarrangementsunderisdeterminedbasedontherightsandobligationsofpartiestothejointarrangementsbyconsideringthestructure,thelegalformofthearrangements,thecontractualtermsagreedbythepartiestothearrangement.Ajointoperationisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstotheassets,andobligationsfortheliabilities,relatingtothearrangement.Ajointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthearrangement.InvestmentsinjointventuresareaccountedforusingtheequitymethodbytheGroup,whichisdetailedinNotes(III)16.3.2,Along-termequityinvestmentaccountedforusingtheequitymethodTheGroupasajointoperatorrecognizesthefollowingitemsinrelationtoitsinterestinajointoperation:(1)itssolely-heldassets,includingitsshareofanyassetsheldjointly;(2)itssolely-assumedliabilities,includingitsshareofanyliabilitiesincurredjointly;(3)itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;(4)itsshareoftherevenuefromthesaleoftheoutputbythejointoperation;and(5)itssolely-incurredexpenses,includingitsshareofanyexpensesincurredjointly.TheGroupaccountsfortherecognizedassets,liabilities,revenuesandexpensesrelatingtoitsinterestinajointoperationinaccordancewiththerequirementsapplicabletotheparticularassets,liabilities,revenuesandexpenses.
-17-
III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
8.RecognitioncriteriaofcashandcashequivalentsCashcomprisescashonhandanddepositsthatcanbereadilywithdrawnondemand.CashequivalentsaretheGroup'sshort-term(generallyduewithin3monthssincetheacquisitiondate),highlyliquidinvestmentsthatarereadilyconvertibletoknownamountsofcashandwhicharesubjecttoaninsignificantriskofchangesinvalue.
9.Foreigncurrencytransactions
9.1TransactionsdenominatedinforeigncurrenciesAforeigncurrencytransactionisrecorded,oninitialrecognition,byapplyingthespotexchangerateonthedateofthetransaction.Atthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedintofunctionalcurrencyusingthespotexchangeratesatthebalancesheetdate.Exchangedifferencesarisingfromthedifferencesbetweenthespotexchangeratesprevailingatthebalancesheetdateandthoseoninitialrecognitionoratthepreviousbalancesheetdatearerecognizedinprofitorlossfortheperiod,exceptthat(1)exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencythatqualifyforcapitalizationarecapitalizedaspartofthecostofthequalifyingassetduringthecapitalizationperiod;(2)exchangedifferencesrelatedtohedginginstrumentsforthepurposeofhedgingagainstforeigncurrencyrisksareaccountedforusinghedgeaccounting;(3)exchangedifferencesarisingfromchangesinthecarryingamounts(otherthantheamortizedcost)ofmonetaryitemsatfairvaluethroughothercomprehensiveincomearerecognizedasothercomprehensiveincome.Whentheconsolidatedfinancialstatementsincludeforeignoperation(s),ifthereisforeigncurrencymonetaryitemconstitutinganetinvestmentinaforeignoperation,exchangedifferencearisingfromchangesinexchangeratesarerecognizedas"exchangedifferencesarisingontranslationoffinancialstatementsdenominatedinforeigncurrencies"inothercomprehensiveincome,andinprofitandlossfortheperiodupondisposaloftheforeignoperation.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostaretranslatedtotheamountsinfunctionalcurrencyatthespotexchangeratesonthedatesofthetransactions;theamountsinfunctionalcurrencyremainunchanged.Foreigncurrencynon-monetaryitemsmeasuredatfairvaluearere-translatedatthespotexchangerateonthedatethefairvalueisdetermined.Differencebetweenthere-translatedfunctionalcurrencyamountandtheoriginalfunctionalcurrencyamountistreatedaschangesinfairvalue(includingchangesofexchangerate)andisrecognizedinprofitandlossorasothercomprehensiveincome.
-18-
III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
9.Foreigncurrencytransactions-continued
9.2TranslationoffinancialstatementsdenominatedinforeigncurrenciesForthepurposeofpreparingtheconsolidatedfinancialstatements,financialstatementsofaforeignoperationaretranslatedfromtheforeigncurrencyintoRMBusingthefollowingmethod:
assetsandliabilitiesonthebalancesheetaretranslatedatthespotexchangerateprevailingatthebalancesheetdate;shareholders'equityitemsexceptforunappropriatedprofitaretranslatedatthespotexchangeratesatthedatesonwhichsuchitemsarose;allitemsintheincomestatementaswellasitemsreflectingthedistributionofprofitsaretranslatedattheaverageexchangeratesoftheaccountingperiodoftheconsolidatedfinancialstatements;theopeningbalanceofunappropriatedprofitisthetranslatedclosingbalanceofthepreviousyear'sunappropriatedprofit;theclosingbalanceofunappropriatedprofitiscalculatedandpresentedonthebasisofeachtranslatedincomestatementandprofitdistributionitem.Thedifferencebetweenthetranslatedassetsandtheaggregateofliabilitiesandshareholders'equityitemsisrecognizedasothercomprehensiveincomeandincludedinshareholders'equity.Cashflowsarisingfromatransactioninforeigncurrencyandthecashflowsofaforeignsubsidiaryaretranslatedataverageexchangerateduringtheaccountingperiodofconsolidatedfinancialstatements.Theeffectofexchangeratechangesoncashandcashequivalentsisregardedasareconcilingitemandpresentedseparatelyinthecashflowstatementas"effectofexchangeratechangesoncashandcashequivalents".Theclosingbalancesandthecomparativefiguresofpreviousyeararepresentedatthetranslatedamountsinthepreviousyear'sfinancialstatements.OndisposaloftheGroup'sentireinterestinaforeignoperation,oruponalossofcontroloveraforeignoperationduetodisposalofcertaininterestinitorotherreasons,theGrouptransferstheaccumulatedexchangedifferencesarisingontranslationoffinancialstatementsofthisforeignoperationattributabletotheowners'equityoftheCompanyandpresentedunderowners'equity,toprofitorlossintheperiodinwhichthedisposaloccurs.IncaseofadisposalofpartequityinvestmentsorotherreasonleadingtolowerinterestpercentageinforeignoperationsbutdoesnotresultintheGrouplosingcontroloveraforeignoperation,theproportionateshareofaccumulatedexchangedifferencesarisingontranslationoffinancialstatementsarere-attributedtominorityinterestsandarenotrecognizedinprofitandloss.Forpartialdisposalsofequityinterestsinforeignoperationswhichareassociatesorjointventures,theproportionateshareoftheaccumulatedexchangedifferencesarisingontranslationoffinancialstatementsofforeignoperationsisreclassifiedtoprofitorloss.
-19-
III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
10.FinancialinstrumentsTheGrouprecognizesafinancialassetorafinancialliabilitywhenitbecomesapartytothecontractualprovisionsofafinancialinstrument.Allregularwaypurchasesorsalesoffinancialassetsarerecognizedandderecognizedonatradedatebasis.Financialassetsandfinancialliabilitiesareinitiallymeasuredatfairvalue.Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,relevanttransactioncostsaredirectlyrecognizedinprofitorloss;transactioncostsrelatingtoothercategoriesoffinancialassetsandfinancialliabilitiesareincludedinthevalueinitiallyrecognized.ForaccountsreceivablerecognizedthatdonotcontainasignificantfinancingcomponentorafinancingcomponentincludedinthecontractslessthanoneyearwhicharenotconsideredbytheGroup,whicharewithinthescopeofAccountingStandardforBusinessEnterprisesNo.14-Revenue(hereinafterreferredtoas"revenuestandards"),transactionpricesdefinedinthestandardsshallbeadoptedoninitialrecognition.Theeffectiveinterestmethodisamethodthatisusedinthecalculationoftheamortizedcostofafinancialassetorafinancialliabilityandintheallocationoftheinterestincomeorinterestexpenseinprofitorlossovertherelevantperiod.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashflowsthroughtheexpectedlifeofthefinancialassetorfinancialliabilitytothegrosscarryingamountofafinancialassetortotheamortizedcostofafinancialliability.Whencalculatingtheeffectiveinterestrate,theGroupestimatesfuturecashflowsbyconsideringallthecontractualtermsofthefinancialassetorfinancialliability(forexample,prepayment,extension,calloptionorsimilaroptions)butshallnotconsidertheexpectedcreditlosses.Theamortizedcostofafinancialassetorafinancialliabilityistheamountofafinancialassetorafinancialliabilityinitiallyrecognizednetofprincipalrepaid,plusorlessthecumulativeamortizedamountarisingfromamortizationofthedifferencebetweentheamountinitiallyrecognizedandtheamountatthematuritydateusingtheeffectiveinterestmethod,netofcumulativecreditlossallowance(onlyapplicabletofinancialassets).
10.1Classification,recognitionandmeasurementoffinancialassetsSubsequenttoinitialrecognition,theGroup'sfinancialassetsofvariouscategoriesaresubsequentlymeasuredatamortizedcost,atfairvaluethroughothercomprehensiveincomeoratfairvaluethroughprofitorloss.Ifcontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,andthefinancialassetisheldwithinabusinessmodelwhoseobjectiveistoholdfinancialassetsinordertocollectcontractualcashflows,suchassetisclassifiedintofinancialassetsmeasuredatamortizedcost,whichincludecashandbankbalances,notesreceivable,accountsreceivable,otherreceivables,debtinvestments,andlong-termreceivablesandetc.
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10.1Classification,recognitionandmeasurementoffinancialassets-continuedFinancialassetsthatmeetthefollowingconditionsaresubsequentlymeasuredatfairvaluethroughothercomprehensiveincome("FVTOCI"):thefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandselling;andthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding.FinancialassetsatFVTOCIarepresentedasotherdebtinvestments.Otherdebtinvestmentsduewithinoneyear(inclusive)sincethebalancesheetdatearepresentedasnon-currentassetsduewithinoneyear.Otherdebtinvestmentsduewithinoneyear(inclusive)uponacquisitionarepresentedasothercurrentassets.Oninitialrecognition,theGroupmayirrevocablydesignatenon-tradingequityinstruments,otherthancontingentconsiderationrecognizedthroughbusinesscombinationnotinvolvingenterprisesundercommoncontrol,asfinancialassetsatFVTOCIonanindividualbasis.SuchfinancialassetsatFVTOCIarepresentedasotherequityinstrument.Afinancialassetisclassifiedasheldfortradingifoneofthefollowingconditionsissatisfied:
?Ithasbeenacquiredprincipallyforthepurposeofsellinginthenearterm;or?OninitialrecognitionitispartofaportfolioofidentifiedfinancialinstrumentsthattheGroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-termprofit-taking;or?Itisaderivativethatisnotafinancialguaranteecontractordesignatedandeffectiveasahedginginstrument.Financialassetsmeasuredatfairvaluethroughprofitorloss("FVTPL")includethoseclassifiedasfinancialassetsatFVTPLandthosedesignatedasfinancialassetsatFVTPL.?AnyfinancialassetsthatdoesnotqualifyforamortizedcostmeasurementormeasurementatFVTOCIordesignatedatFVTOCIareclassifiedintofinancialassetsatFVTPL.?Uponinitialrecognition,inordertoeliminateorsignificantlyreduceaccountingmismatchand
qualifiedhybridfinancialinstrumentcombinesfinancialassetwithembeddedderivatives,theGroupwillirrevocablydesignateditasfinancialliabilitiesatFVTPL.FinancialassetsatFVTPLassetsotherthanderivativefinancialassetsarepresentedas"held-for-tradingfinancialassets".SuchfinancialassetsatFVTPLwhichmayfallduemorethanoneyear(orwithoutfixedterm)sincethebalancesheetdateandwillbeheldmorethanoneyeararepresentedasothernon-currentfinancialassets.
10.1.1Financialassetsmeasuredatamortizedcost
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Financialassetsmeasuredatamortizedcostaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestmethod.Gainorlossarisingfromimpairmentorderecognitionisrecognizedinprofitorloss.
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10.1Classification,recognitionandmeasurementoffinancialassets-continued
10.1.1Financialassetsmeasuredatamortizedcost-continuedForfinancialassetsmeasuredatamortizedcost,theGrouprecognizesinterestincomeusingeffectiveinterestmethod.TheGroupcalculatesandrecognizesinterestincomethroughbookvalueoffinancialassetsmultiplyingeffectiveinterest,exceptforthefollowingcircumstances:
?Forpurchasedororiginatedcredit-impairedfinancialassetswithcreditimpairment,theGroup
calculatesandrecognizesitsinterestincomebasedonamortizedcostofthefinancialassetandtheeffectiveinterestthroughcreditadjustmentsinceinitialrecognition.
10.1.2FinancialassetsatFVTOCIImpairmentlossesorgainsrelatedtofinancialassetsatFVTOCI,interestincomemeasuredusingeffectiveinterestmethodandexchangegainsorlossesarerecognizedintoprofitorlossforthecurrentperiod,exceptfortheabovecircumstances,changesinfairvalueofthefinancialassetsareincludedinothercomprehensiveincome.Amountschargedtoprofitorlossforeveryperiodequaltotheamountchargedtoprofitorlossasitismeasuredatamortizedcosts.Whenthefinancialassetisderecognized,thecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeshallberemovedfromothercomprehensiveincomeandrecognizedinprofitorloss.Changesinfairvalueofnon-tradingequityinstrumentinvestmentsdesignatedasfinancialassetsatFVTOCIarerecognizedinothercomprehensiveincome,andthecumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomeallocatedtothepartderecognizedaretransferredandincludedinretainedearnings.DuringtheperiodinwhichtheGroupholdsthenon-tradingequityinstrument,revenuefromdividendsisrecognizedinprofitorlossforthecurrentperiodwhen(1)theGrouphasestablishedtherightofcollectingdividends;(2)itisprobablethattheassociatedeconomicbenefitswillflowtotheGroup;and(3)theamountofdividendscanbemeasuredreliably.
10.1.3FinancialassetsatFVTPLFinancialassetsatFVTPLaresubsequentlymeasuredatfairvalue.Gainorlossarisingfromchangesinfairvaluesanddividendsandinterestsrelatedtothefinancialassetsarerecognizedinprofitorloss.
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10.2ImpairmentoffinancialinstrumentsTheGroupmakesaccountingtreatmentonimpairmentandrecognizeslossallowanceforexpectedcreditlosses("ECL")onfinancialassetsmeasuredatamortizedcost,financialassetsclassifiedasatFVTOCI,leasereceivables,contractassets,loancommitmentsthatarenotfinancialliabilitiesatFVTPL,financialliabilitiesnotmeasuredatFVTPL,financialguaranteecontractsarisingfromtransferoffinancialassetswhichdoesnotsatisfyderecognitioncriteriaorcontinuinginvolvementoftransferredfinancialassets.TheGroupmakesalossallowanceagainstamountoflifetimeECLofthecontractassets,notesreceivableandaccountsreceivablearisingfromtransactionsadoptingtheRevenueStandardaswellasleasereceivablesarisingfromtransactionsadoptingASBENo.21-Leases.Forotherfinancialinstrument,otherthanpurchasedororiginatedcredit-impairedfinancialassets,theGroupassesseschangesincreditrisksoftherelevantfinancialassetsinceinitialrecognitionateachbalancesheetdate.Ifthecreditlossofthefinancialinstrumenthasbeensignificantlyincreasedsinceinitialrecognition,theGroupwillmakealossallowanceatanamountofexpectedcreditlossduringthewholelife;ifnot,theGroupwillmakealossallowanceforthefinancialinstrumentatanamountinthefuture12-monthexpectedcreditlosses.ExceptforthefinancialassetsclassifiedasatFVTOCI,increaseinorreversalofcreditlossallowanceisincludedinprofitorlossasloss/gainonimpairment.ForthefinancialassetsclassifiedasatFVTOCI,theGrouprecognizescreditlossallowanceinothercomprehensiveincomeandrecognizestheloss/gainonimpairmentinprofitorloss,whiletheGroupdoesnotdecreasethecarryingamountofsuchfinancialassetsinthebalancesheet.TheGrouphasmakesalossallowanceagainstamountofexpectedcreditlossesduringthewholelifeintheprioraccountingperiod.However,atthebalancesheetdate,thecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognition;theGroupwillmeasurethelossallowanceforthatfinancialinstrumentatanamountinthefuture12-monthexpectedcreditlosses.Reversedamountoflossallowancearisingfromsuchcircumstancesshallbeincludedinprofitorlossasimpairmentgains.
10.2.1SignificantincreaseofcreditriskInassessingwhetherthecreditriskhasincreasedsignificantlysinceinitialrecognition,theGroupcomparestheriskofadefaultoccurringonthefinancialinstrumentasatthereportingdatewiththeriskofadefaultoccurringonthefinancialinstrumentasatthedateofinitialrecognition.Forloancommitments,thedatethattheGroupbecomesapartytotheirrevocablecommitmentisconsideredtobethedateofinitialrecognitionintheapplicationofcriteriarelatedtothefinancialinstrumentforimpairment.Inparticular,thefollowinginformationistakenintoaccountwhenassessingwhethercreditriskhasincreasedsignificantly:
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10.2.1Significantincreaseofcreditrisk-continued
(1)Significantchangesininternalpriceindicatorsofcreditriskasaresultofachangeincreditrisk;
(2)Otherchangesintheratesortermsofanexistingfinancialinstrumentthatwouldbesignificantlydifferentiftheinstrumentwasnewlyoriginatedorissuedatthebalancesheetdate(suchasmorestringentcovenants,increasedamountsofcollateralorguarantees,orhigherincomecoverage).
(3)Significantchangesinexternalmarketindicatorsofcreditriskforaparticularfinancialinstrumentorsimilarfinancialinstrumentswiththesameexpectedlife.Theseindicatorsincludethecreditspread,thecreditswappricesfortheborrower,thelengthoftimeortheextenttowhichthefairvalueofafinancialassethasbeenlessthanitsamortizedcostandothermarketinformationrelatedtotheborrower,suchaschangesinthepriceofaborrower'sdebtandequityinstruments.
(4)Significantchangesinactualorexpectedexternalcreditratingforthefinancialinstruments;
(5)Anactualorexpectedinternalcreditratingdowngradefortheborrower
(6)Adversechangesinbusiness,financialoreconomicconditionsthatareexpectedtocausea
significantchangeinthedebtor'sabilitytomeetitsdebtobligations;
(7)Anactualorexpectedsignificantchangeintheoperatingresultsofthedebtor;
(8)Significantincreasesincreditriskonotherfinancialinstrumentsofthesameborrower;
(9)Significantadversechangeintheregulatory,economic,ortechnologicalenvironmentofthedebtor;
(10)Significantchangesinthevalueofthecollateralsupportingtheobligationorinthequality
ofthird-partyguaranteesorcreditenhancements,whichareexpectedtoreducethedebtor'seconomicincentivetomakescheduledcontractualpaymentsortootherwisehaveaneffectontheprobabilityofadefaultoccurring.
(11)Significantchangesincircumstancesexpectedtoreducethedebtor'seconomicincentivetomakescheduledcontractualpayments;
(12)Expectedchangesintheloandocumentationincludinganexpectedbreachofcontractthatmayleadtocovenantwaiversoramendments,interestpaymentholidays,interestratestep-ups,requiringadditionalcollateralorguarantees,orotherchangestothecontractualframeworkofthefinancialinstrument;
(13)Significantchangesintheexpectedperformanceandbehaviorofthedebtor;
(14)Changesintheentity'screditmanagementapproachinrelationtothefinancialinstrument;
(15)Pastdueofcontractpayment.TheGroupassumesthatthecreditriskonafinancialinstrumenthasnotincreasedsignificantlysinceinitialrecognitionifthefinancialinstrumentisdeterminedtohavelowercreditriskatthebalancesheetdate.Afinancialinstrumentisdeterminedtohavelowercreditriskif:i)ithasalowerriskofdefault,ii)theborrowerhasastrongcapacitytomeetitscontractualcashflowobligationsintheneartermandiii)adversechangesineconomicandbusinessconditionsinthelongertermmay,butwillnotnecessarily,reducetheabilityoftheborrowertofulfilitscontractualcashflowobligations.
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10.2.2Credit-impairedfinancialassetsWhentheGroupexpectedoccurrenceofoneormoreeventswhichmaycauseadverseimpactonfuturecashflowsofafinancialasset,thefinancialassetwillbecomeacredit-impairedfinancialassets.Objectiveevidencethatafinancialassetisimpairedincludesbutnotlimitedtothefollowingobservableevents:
(1)Significantfinancialdifficultyoftheissuerordebtor;
(2)Abreachofcontractbythedebtor,suchasadefaultordelinquencyininterestorprincipalpayments;
(3)Thecreditor,foreconomicorlegalreasonsrelatingtothedebtor'sfinancialdifficulty,grantingaconcessiontothedebtor;
(4)Itbecomingprobablethatthedebtorwillenterbankruptcyorotherfinancialreorganizations;
(5)Thedisappearanceofanactivemarketforthatfinancialassetbecauseoffinancialdifficultiesoftheissuerorthedebtor;
(6)Purchaseororiginateafinancialassetwithalargescaleofdiscount,whichreflectsfactsofcreditlossincurred.
10.2.3DeterminationofexpectedcreditlossLeasereceivablesareassessedforECLindividuallybytheGroup.Inaddition,theGroupusesprovisionmatrixtocalculateECLfornotesreceivable,accountsreceivable,otherreceivables,contractassets,debtinvestmentsandotherdebtinvestmentsbasedonaportfoliobasis.TheGroupclassifiesfinancialinstrumentsintodifferentgroupsbasedoncommonriskcharacteristics.Commoncreditriskcharacteristicsincludecreditriskrating,thedateofinitialrecognition,remainingcontractualmaturity,industryofborrowerandgeographicallocationoftheborroweretc.TheGroupdeterminesexpectedcreditlossesofrelevantfinancialinstrumentsusingthefollowingmethods:
?Forafinancialasset,acreditlossisthepresentvalueofthedifferencebetweenthe
contractualcashflowsthatareduetotheGroupunderthecontractandthecashflowsthattheGroupexpectstoreceive;?Foraleasereceivable,acreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflowsthatareduetotheGroupunderthecontractandthecashflowsthattheGroupexpectstoreceive;
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10.2.3Determinationofexpectedcreditloss-continued?Forundrawnloancommitments(refertoNoteIII,10.4.1.3forthedetailofaccounting
policies),theECListhepresentvalueofthedifferencebetweenthecontractualcashflowsthatareduetotheGroupiftheholderoftheloancommitmentsdrawsdowntheloan,andthecashflowsthattheGroupexpectstoreceiveiftheloanisdrawndown.TheGroup'sestimationoftheECLforloancommitmentsisconsistentwithitsexpectationoftheloancommitmentsdrawndown.?Forafinancialguaranteecontract(refertoNoteIII,10.4.1.3forthedetailofaccountingpolicies),theexpectedlossesisthepresentvalueoftheexpectedpaymentstoreimbursetheholderforacreditlossthatitincurslessanyamountsthattheGroupexpectstoreceivefromtheholder,thedebtororanyotherparty.?Forafinancialassetwithcredit-impairedatthebalancesheetdate,butnotpurchasedororiginatedcredit-impaired,acreditlossesisthedifferencebetweentheasset'sgrosscarryingamountandthepresentvalueofestimatedfuturecashflowsdiscountedatthefinancialasset'soriginaleffectiveinterestrate.Thefactorsreflectedinmethodsofmeasurementofexpectedcreditlossesincludeanunbiasedandprobability-weightedamountthatisdeterminedbyevaluatingarangeofpossibleoutcomes;timevalueofmoney;reasonableandsupportableinformationaboutpastevents,currentconditionsandforecastsonfutureeconomicstatusatbalancesheetdatewithoutunnecessaryadditionalcostsorefforts.
10.2.4Write-downoffinancialassetsWhentheGroupwillnolongerreasonablyexpectthatthecontractualcashflowsoffinancialassetscanbecollectedinaggregateorinpart,theGroupwilldirectlywritedownthecarryingamountofthefinancialasset,whichconstitutesderecognitionofrelevantfinancialassets.
10.3TransferoffinancialassetsTheGroupwillderecognizeafinancialassetifoneofthefollowingconditionsissatisfied:(i)thecontractualrightstothecashflowsfromthefinancialassetexpire;(ii)thefinancialassethasbeentransferredandsubstantiallyalltherisksandrewardsofownershipofthefinancialassetistransferredtothetransferee;or(iii)althoughthefinancialassethasbeentransferred,theGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofthefinancialassetbuthasnotretainedcontrolofthefinancialasset.
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10.3Transferoffinancialassets-continuedIftheGroupneithertransfersnorretainssubstantiallyalltherisksandrewardsofownershipofafinancialasset,anditretainscontrolofthefinancialasset,theGroupwillrecognizethefinancialassettotheextentofitscontinuinginvolvementinthetransferredfinancialassetandrecognizeanassociatedliability.TheGroupwillmeasurerelevantliabilitiesasfollows:
?Fortransferredfinancialassetscarriedatamortizedcost,thecarryingamountofrelevant
liabilitiesisthecarryingamountoffinancialassetstransferredwithcontinuinginvolvementlessamortizedcostoftheGroup'sretainedrights(iftheGroupretainsrelevantrightsupontransferoffinancialassets)withadditionofamortizedcostofobligationsassumedbytheGroup(iftheGroupassumesrelevantobligationsupontransferoffinancialassets).Relevantliabilitiesarenotdesignatedasfinancialliabilitiesatfairvaluethroughprofitorloss.?Fortransferredfinancialassetscarriedatfairvalue,thecarryingamountofrelevant
financialliabilitiesisthecarryingamountoffinancialassetstransferredwithcontinuinginvolvementlessfairvalueoftheGroup'sretainedrights(iftheGroupretainsrelevantrightsupontransferoffinancialassets)withadditionoffairvalueofobligationsassumedbytheGroup(iftheGroupassumesrelevantobligationsupontransferoffinancialassets).Accordingly,thefairvalueofrelevantrightsandobligationsshallbemeasuredonanindividualbasis.Foratransferofafinancialassetinitsentiretythatsatisfiesthederecognitioncriteria,thedifferencebetween(1)thecarryingamountofthefinancialassettransferredand(2)thesumoftheconsiderationreceivedfromthetransferandaccumulatedchangesinfairvalueinitiallyrecordedinothercomprehensiveincomeisrecognizedinprofitorloss.Forthenon-tradableequityinstrumentdesignatedasfinancialassetsatFVTOCI,cumulativegainorlossthathasbeenrecognizedinothercomprehensiveincomeshouldberemovedfromothercomprehensiveincomebutberecognizedinretainedearnings.Forapartoftransferofafinancialassetthatsatisfiesthederecognitioncriteria,thecarryingamountofthetransferredfinancialassetisallocatedbetweenthepartthatisderecognizedandthepartthatiscontinuouslyinvolved,basedontherespectivefairvaluesofthosepartsontransferdate.Thedifferencebetween(1)thesumoftheconsiderationreceivedforthepartderecognizedandanycumulativegainorlossallocatedtothepartderecognizedwhichhasbeenpreviouslyrecognizedinothercomprehensiveincome;and(2)thecarryingamountallocatedtothepartderecognizedonderecognitiondate;isrecognizedinprofitorloss.Forthenon-tradableequityinstrumentdesignatedasfinancialassetsatFVTOCI,cumulativegainorlossthathasbeenrecognizedinothercomprehensiveincomeshouldberemovedfromothercomprehensiveincomebutberecognizedinretainedearnings.Foratransferofafinancialassetinitsentiretythatdoesnotsatisfythederecognitioncriteria,theGroupwillcontinuouslyrecognizethetransferredfinancialassetinitsentirety.Considerationsreceivedduetotransferofassetsshouldberecognizedasaliabilityuponreceipts.
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10.4ClassificationoffinancialliabilitiesequityinstrumentsFinancialinstrumentsissuedbytheGroupareclassifiedintofinancialliabilitiesorequityinstrumentsonthebasisofthesubstanceofthecontractualarrangementsandtheeconomicnaturenotonlyitslegalform,togetherwiththedefinitionoffinancialliabilityandequityinstrumentsoninitialrecognition.
10.4.1Classification,recognitionandmeasurementoffinancialliabilitiesOninitialrecognition,financialliabilitiesareclassifiedintofinancialliabilitiesatFVTPLandotherfinancialliabilities.
10.4.1.1FinancialliabilitiesatFVTPLFinancialliabilitiesatFVTPLconsistoffinancialliabilitiesheldfortrading(includingderivativesclassifiedasfinancialliabilities)andthosedesignatedasatFVTPL.Exceptforderivativefinancialliabilitiespresentedseparately,thefinancialliabilitiesatFVTPLarepresentedasheld-for-tradingfinancialliabilities.Afinancialliabilityisclassifiedasheldfortradingifoneofthefollowingconditionsissatisfied:
?Ithasbeenacquiredprincipallyforthepurposeofrepurchasinginthenearterm;or?Oninitialrecognitionitispartofaportfolioofidentifiedfinancialinstrumentsthatthe
GroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-termprofit-taking;or?Itisaderivativethatisnotafinancialguaranteecontractordesignatedandeffectiveasa
hedginginstrument.AfinancialliabilitymaybedesignatedasatFVTPLoninitialrecognitionwhenoneofthefollowingconditionsissatisfied:(i)Suchdesignationeliminatesorsignificantlyreducesaccountingmismatch;or(ii)TheGroupmakesmanagementandperformanceevaluationonafairvaluebasis,inaccordancewiththeGroup'sformallydocumentedriskmanagementorinvestmentstrategy,andreportstokeymanagementpersonnelonthatbasis.(iii)Thequalifiedhybridfinancialinstrumentcombinesfinancialassetwithembeddedderivatives.Transactionfinancialliabilitiesaresubsequentlymeasuredatfairvalue.Anygainsorlossesarisingfromchangesinthefairvalueandanydividendorinterestexpensespaidonthefinancialliabilitiesarerecognizedinprofitorloss.
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10.4Classificationoffinancialliabilitiesequityinstruments-continued
10.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued
10.4.1.1FinancialliabilitiesatFVTPL-continuedTheamountofchangeinthefairvalueofthefinancialliabilitythatisattributabletochangesinthecreditriskofthatliabilityshallbepresentedinothercomprehensiveincome,otherchangesinfairvaluesareincludedinprofitorlossforthecurrentperiod.Uponthederecognitionofsuchliability,theaccumulatedamountofchangeinfairvaluethatisattributabletochangesinthecreditriskofthatliability,whichisrecognizedinothercomprehensiveincome,istransferredtoretainedearnings.Anydividendorinterestincomeearnedonthefinancialliabilitiesarerecognizedinprofitorloss.Iftheimpactofthechangeincreditriskofsuchfinancialliabilitydealtwithintheabovewaywouldcreateorenlargeanaccountingmismatchinprofitorloss,theGroupshallpresentallgainsorlossesonthatliability(includingtheeffectsofchangesinthecreditriskofthatliability)inprofitorloss.FinancialliabilitiesaremeasuredatFVTPLwhenthefinancialliabilitiesisarisingfromcontingentconsiderationrecognizedbytheGroupasanacquirerinabusinesscombinationnotinvolvingenterprisesundercommoncontrol.
10.4.1.2OtherfinancialliabilitiesExceptforfinancialliabilities,financialguaranteecontractsandloancommitmentsarisingfromtransferoffinancialassetsthatdonotmeetthederecognitioncriteriaorthosearisingfromcontinuinginvolvementinthetransferredfinancialassets,otherfinancialliabilitiesaresubsequentlymeasuredatamortizedcost,withgainorlossarisingfromderecognitionoramortizationrecognizedinprofitorloss.ThattheGroupanditscounterpartymodifyorrenegotiatethecontractdoesnotresultinderecognitionofafinancialliabilitysubsequentlymeasuredatamortizedcostbutresultinchangesincontractualcashflows,theGroupwillrecalculatethecarryingamountofthefinancialliability,withrelevantgainorlossrecognizedinprofitorloss.TheGroupwilldeterminecarryingamountofthefinancialliabilitybasedonthepresentvalueofrenegotiatedormodifiedcontractualcashflowsdiscountedatthefinancialliability'soriginaleffectiveinterestrate.Forallcostsorexpensesarisingfrommodificationorrenegotiationofthecontract,theGroupwilladjustthemodifiedcarryingamountofthefinancialliabilityandmakeamortizationduringtheremainingtermofthemodifiedfinancialliability.
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10.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued
10.4.1.3FinancialguaranteecontractsandloancommitmentsAfinancialguaranteecontractisacontractthatrequirestheissuertomakespecifiedpaymentstoreimbursetheholderofthecontractforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.Subsequenttoinitialrecognition,financialguaranteecontractsthatarenotdesignatedasfinancialliabilitiesatfairvaluethroughprofitorlossorfinancialliabilitiesarisingfromtransferoffinancialassetsthatdonotmeetthederecognitioncriteriaorthosearisingfromcontinuinginvolvementinthetransferredfinancialassets,andloancommitmentstoprovidealoanatabelow-marketinterestrate,whicharenotdesignatedatfairvaluethroughprofitorloss,aremeasuredatthehigherof:(1)amountoflossprovision;and(2)theamountinitiallyrecognizedlesscumulativeamortizationamountdeterminedbasedontherevenuestandard.
10.4.2DerecognitionoffinancialliabilitiesTheGroupderecognizesafinancialliability(orpartofit)whentheunderlyingpresentobligation(orpartofit)isdischarged.AnagreementbetweentheGroup(thedebtor)andthecreditortoreplacetheoriginalfinancialliabilitywithanewfinancialliabilitywithsubstantiallydifferenttermsisaccountedforasanextinguishmentoftheoriginalfinancialliabilityandtherecognitionofanewfinancialliability.WhentheGroupderecognizesafinancialliabilityorapartofit,itrecognizesthedifferencebetweenthecarryingamountofthefinancialliability(orpartofthefinancialliability)derecognizedandtheconsiderationpaid(includinganynon-cashassetstransferredornewfinancialliabilitiesassumed)inprofitorloss.
10.4.3EquityinstrumentsAnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheGroupafterdeductingallofitsliabilities.Equityinstrumentsissued(includingrefinanced),repurchased,soldandcancelledbytheGrouparerecognizedaschangesofequity.ChangesoffairvalueofequityinstrumentsisnotrecognizedbytheGroup.Transactioncostsrelatedtoequitytransactionsaredeductedfromequity.TheGrouprecognizesthedistributiontoholdersoftheequityinstrumentsasdistributionofprofits,dividendspaiddonotaffecttotalamountofshareholders'equity.
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10.5DerivativesandembeddedderivativesDerivativesincludeforwardexchangecontracts,currencyswaps,interestrateswapsandforeignexchangeoptions,etc.Derivativesareinitiallymeasuredatfairvalueatthedatewhenthederivativecontractsareenteredintoandaresubsequentlyremeasuredatfairvalue.DerivativesembeddedinhybridcontractswithafinancialassethostarenotseparatedbytheGroup.Thehybridcontractshallapplytotherelevantaccountingstandardsregardingtheclassificationoffinancialassetsasawhole.DerivativesembeddedinhybridcontractswithhoststhatarenotfinancialassetsareseparatedandtreatedasseparatederivativesbytheGroupwhentheymeetthefollowingconditions:
(1)theeconomiccharacteristicsandrisksoftheembeddedderivativearenotcloselyrelatedtothoseofthehostcontract;
(2)aseparateinstrumentwiththesametermsastheembeddedderivativewouldmeetthedefinitionofaderivative.
(3)thehybridcontractsarenotmeasuredatfairvaluethroughprofitorloss.Fortheembeddedderivativeseparatedfromthehostcontracts,theGroupaccountsforthehostcontractsinthehybridcontractswithapplicableaccountingstandards.WhentheembeddedderivativeswhosefairvaluecannotbemeasuredreliablybytheGroupaccordingtothetermsandconditionsoftheembeddedderivatives,thefairvalueofsuchderivativesaremeasuredatthedifferencebetweenthefairvalueofthehybridcontractsandthefairvalueofthehostcontracts.Byadoptingtheabovemethod,iftheembeddedderivativecannotbemeasuredonastand-alonebasisatthetimewhenacquiredoratsubsequentbalancesheetdates,thehybridinstrumentisdesignatedasfinancialinstrumentsatfairvaluethroughprofitorlossasawhole.
10.6OffsettingfinancialassetsandfinancialliabilitiesWheretheGrouphasalegalrightthatiscurrentlyenforceabletosetofftherecognizedfinancialassetsandfinancialliabilities,andintendseithertosettleonanetbasis,ortorealizethefinancialassetandsettlethefinancialliabilitysimultaneously,afinancialassetandafinancialliabilityshallbeoffsetandthenetamountispresentedinthebalancesheet.Exceptfortheabovecircumstances,financialassetsandfinancialliabilitiesshallbepresentedseparatelyinthebalancesheetandshallnotbeoffset.
10.7ReclassificationoffinancialinstrumentsWhentheGroupchangesthebusinessmodeltomanagethefinancialassets,thefinancialassetsaffectedwillbereclassifiedandnofinancialliabilitieswillbereclassified.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
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10.Financialinstruments-continued
10.7Reclassificationoffinancialinstruments-continuedThefinancialassetsarereclassifiedbytheGroupandareaccountedforprospectivelysincethedateofreclassification(i.e.thefirstdateoftheinitialreportingperiodafterthebusinessmodelofwhichthefinancialassetsarereclassifiedbytheenterpriseischanged).Whereafinancialassetatamortizedcostisreclassifiedasafinancialassetsatfairvaluethroughprofitorloss("FVTPL")bytheGroup,suchfinancialassetismeasuredatfairvalueatthedateofreclassificationandthedifferencebetweentheoriginalcarryingamountandthefairvalueisrecognizedinprofitorlossfortheperiod.Whereafinancialassetatamortizedcostisreclassifiedasafinancialassetatfairvaluethroughothercomprehensiveincome("FVTOCI")bytheGroup,suchfinancialassetismeasuredatthefairvalueatthedateofreclassification,andthedifferencebetweentheoriginalamountandthefairvalueisrecognizedinothercomprehensiveincome.WhereafinancialassetatFVTOCIisreclassifiedasafinancialassetatamortizedcostbytheGroup,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredoutandthefairvalueisadjustedasthefairvalueatthedateofreclassification.Theadjustedfairvalueisrecognizedasthenewcarryingamount,asifthefinancialassethadbeenmeasuredatamortizedcost.WhereafinancialassetatFVTOCIisreclassifiedasafinancialassetatFVTPLbytheGroup,suchfinancialassetcontinuestobeaccountedforatfairvalue.Atthesametime,theaccumulatedgainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredtoprofitorlossfortheperiod.WhereafinancialassetatFVTPLisreclassifiedasafinancialassetatamortizedcostbytheGroup,thefairvalueatthedateofreclassificationisrecognizedasthenewaccountbalance.WhereafinancialassetatFVTPLisreclassifiedasafinancialassetatFVTOCIbytheGroup,suchfinancialassetcontinuestobemeasuredatfairvalue.WhereafinancialassetatFVTPLisreclassified,theeffectiveinterestrateisdeterminedonthebasisofthefairvalueofthefinancialassetatthedateofreclassification.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
11.AccountsreceivableTheGroupmakesinternalcreditratingsoncustomersanddeterminesexpectedlossesrateofnotesreceivable,accountsreceivableandotherreceivables.Basisfordeterminingratingsandtheexpectedlossesratesareasfollows:
| Internalcreditrating | Basisfordeterminingportfolio | Averageexpectedlossrate(%) |
| A | Customerscanmakerepaymentswithincredittermandhavegoodcreditrecordsbasedonhistoricalexperience.Theprobabilityofunpaymentofdueamountareextremelylowintheforeseeablefuture. | 0.00-0.10 |
| B | Thecustomermayhaveoverduepaymentbasedonhistoricalexperiencebuttheycanmakerepayments. | 0.10-0.30 |
| C | Theevidencesindicatethattheoverduecreditrisksofthecustomeraresignificantlyincreasedandthereisprobabilityofunpaymentanddefault. | 0.30-50.00 |
| D | Theevidencesindicatethattheaccountsreceivableareimpairedorthecustomerhassignificantfinancialdifficulty.Theamountscannotberecoveredintheforeseeablefuture. | 50.00-100.00 |
12.AccountsreceivablefinancingNotesreceivableclassifiedtohedginginstrumentsforthepurposeofhedging,shouldbelistedasaccountsreceivablefinancingwithinoneyear(includingoneyear).Ifthetermaboveoneyear,itshouldbelistedasotherinvestmentonbonds.RelatedaccountingpoliciesrefertoNoteIII10.
13.Inventories
13.1CategoriesofinventoriesInventoriesincluderawmaterials,merchandiseandothers.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpendituresincurredinbringingtheinventoriestotheirpresentlocationandcondition.
13.2ValuationmethodofinventoriesupondeliveryTheactualcostofinventoriesupondeliveryiscalculatedusingtheweightedaveragemethod.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
13.Inventories-continued
13.3Basisfordeterminingnetrealizablevalueofinventoriesandprovisionmethodsfor
declineinvalueofinventoriesAtthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Ifthecostofinventoriesishigherthanthenetrealizablevalue,aprovisionfordeclineinvalueofinventoriesismade.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Netrealizablevalueisdeterminedonthebasisofclearevidenceobtained,aftertakingintoconsiderationthepurposesofinventoriesbeingheldandeffectofpostbalancesheetevents.Provisionfordeclineinvalueofotherinventoriesismadebasedontheexcessofcostofinventoryoveritsnetrealizablevalueonanitem-by-itembasis.Aftertheprovisionfordeclineinvalueofinventoriesismade,ifthecircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistsothatthenetrealizablevalueofinventoriesishigherthantheircost,theoriginalprovisionfordeclineinvalueisreversedandthereversalisincludedinprofitorlossfortheperiod.
13.4InventorycountsystemTheperpetualinventorysystemismaintainedforstocksystem.
13.5Amortizationmethodsforlowcostandshort-livedconsumableitemsandpackaging
materialsPackagingmaterialsandlowcostandshort-livedconsumableitemsareamortizedusingtheimmediatewrite-offmethod.
14.Contractassets
14.1RecognitionandcriteriaofcontractassetsAcontractassetrepresentstheGroup'srighttoconsiderationinexchangeforgoodsorservicesthattheGrouphastransferredtoacustomer,andsuchrightdependsonfactorsotherthanthepassageoftime.TheGroup'sunconditionalright(onlythepassageoftimeisrequired)toconsiderationfromthecustomerisseparatelypresentedas"accountsreceivable".
14.2Determinationandaccountingtreatmentsofexpectedcreditlosses("ECL")forcontract
assetsRefertoNoteIII,10.2"Impairmentoffinancialinstruments"fordeterminationandaccountingtreatmentsofexpectedcreditlossesforcontractassets.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
15.AssetsheldforsaleWhentheGroupwithdrawthebookvalueofcertainassetsordisposalgroupmainlythroughdisposalinsteadofcontinualapplication,theassetsshouldbeclassifiedasheld-for-saleassets.Assetsordisposalgroupclassifiedasheld-for-saleassetsshouldmeatfollowingconditions:(1)Thecurrentstatusisavailableforimmediatedistributionaccordingtosimilartransactionsofthiscategoryofassetsordisposalgroup;(2)Thetransactionislikelytooccur,i.e.theGrouphasmadeitsresolutionoverthedistributionarrangementsandacquiredpurchasecommitment.Alsothedistributionisgoingtobefulfilledwithinayear.Iftheholdingcompanylosescontrolofitssubsidiaryforreasonslikesubsidiarydisposal,inregardlessofwhethertheholdingcompanystillkeepspartofequityinvestment,oncetheproposedinvestmentdisposalmeetstherequirementsofbeingclassifiedasavailableforsaleassetsintheholdingcompany'sindividualstatement,allassetsandliabilitiesofthesubsidiaryshouldbeclassifiedasheld-for-saleinconsolidatedfinancialstatement.Thegroup'snon-currentassetsanddisposalgrouparemeasuredatthelowerofbookvalueandthenetvalueoffairvaluelesscoststosell.Oncethebookvalueishigherthanthenetvalueoffairvaluelesscoststosell,thebookvalueshouldbeadjustedtothenetvalueandtheexcessshouldberecognizedasimpairmentlossesandprovisionforheld-for-saleassetsimpairmentshouldbemade.Againandareverseinthepreviousprovisionforheld-for-saleassetsimpairmentcanberecognizedforanyincreaseinfairvaluelesscoststosellatsubsequentbalancesheetdates,totheextentthatitisnotinexcessofthecumulativeimpairmentlossthathasbeenrecognized.Assetimpairmentlossesrecognizedbeforesuchassetsareclassifiedasheldforsalewillnotbereversed.Non-currentheld-for-saleassetsisnotsubjecttodepreciationandamortization.Thecreditorinterestandotherexpensesofdisposalgroupclassifiedasheld-for-saleassetshouldstillberecognized.Oncetheassociateorjointventureequityinvestmentiscompletelyorpartlyclassifiedasheld-for-saleassets,theclassifiedpartoftheinvestmentisnotsubjecttoequitymethodmeasurement.Ifanassetoradisposalgrouphasbeenclassifiedasheldforsalebuttherecognitioncriteriafornon-currentassetsheldforsalearenolongermet,theGroupshallceasetoclassifytheassetordisposalgroupasheldforsale.Itshallbemeasuredatthelowerof(1)thecarryingamountbeforetheassetordisposalgroupwasclassifiedasheldforsale,adjustedforanydepreciation,amortizationorimpairmentthatwouldhavebeenrecognizedhadtheassetordisposalgroupnotbeenclassifiedasheldforsale;and(2)therecoverableamountatthedateofthedecisionnottosell.Forequityinvestmentsinassociatesorjointventuresthatareclassifiedasheldforsalebuttherecognitionfornon-currentassetsheldforsalearenolongermet,suchinvestmentsareaccountedforretrospectivelyusingtheequitymethodfromthedatewhentheyclassifiedasheldforsale.Thefinancialstatementsfortheheld-for-saleperiodareadjustedaccordingly.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
16.Long-termequityinvestments
16.1BasisfordeterminingjointcontrolandsignificantinfluenceoverinvesteeControlisarchivedwhentheGrouphasthepowerovertheinvesteeandhasrightstovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytouseitspowertoaffectitsreturns.Jointcontrolisthecontractuallyagreedsharingofcontroloveraneconomicactivity,andexistsonlywhenthestrategicfinancialandoperatingpolicydecisionsrelatingtotheactivityrequiretheunanimousconsentofthepartiessharingcontrol.Significantinfluenceisthepowertoparticipateinthefinancialandoperatingpolicydecisionsoftheinvesteebutisnotcontrolorjointcontroloverthosepolicies.Whendeterminingwhetheraninvestingenterpriseisabletoexercisecontrolorsignificantinfluenceoveraninvestee,theeffectofpotentialvotingrightsoftheinvestee(forexample,warrantsandconvertibledebts)heldbytheinvestingenterprisesorotherpartiesthatarecurrentlyexercisableorconvertibleshallbeconsidered.
16.2DeterminationofinvestmentcostForalong-termequityinvestmentacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,theinvestmentcostofthelong-termequityinvestmentistheattributableshareofthecarryingamountoftheshareholders'equityoftheacquireeatthedateofcombination.Thedifferencebetweentheinitialinvestmentcostandthecarryingamountofcashpaid,non-cashassetstransferredandliabilitiesassumedshallbeadjustedtocapitalreserve.Ifthebalanceofcapitalreserveisnotsufficient,anyexcessshallbeadjustedtoretainedearnings.Iftheconsiderationofthecombinationissatisfiedbytheissueofequitysecurities,theinitialinvestmentcostofthelong-termequityinvestmentshallbetheshareofpartybeingabsorbedoftheowners'equityintheconsolidatedfinancialstatementsoftheultimatecontrollingpartyatthedateofcombination.Theaggregatefacevalueofthesharesissuedshallbeaccountedforassharecapital.Thedifferencebetweentheinitialinvestmentcostandtheaggregatefacevalueofthesharesissuedshallbeadjustedtocapitalreserve.Ifthebalanceofcapitalreserveisnotsufficient,anyexcessshallbeadjustedtoretainedearnings.Whereequityinterestsinanacquireeareacquiredinstagesthroughmultipletransactionsultimatelyconstitutingabusinesscombinationinvolvingentitiesundercommoncontrol,theacquirershalldetermineifthesetransactionsareconsideredtobea"packagedeal".Ifyes,thesetransactionsareaccountedforasasingletransactionwherecontrolisobtained.Ifno,theinitialinvestmentcostofthelong-termequityinvestmentistheshareofbookvalueofowners'equityoftheacquiredentityintheultimatecontrollingparty'sconsolidatedfinancialstatementsatthedateofcombination.Thedifferencebetweentheinitialinvestmentcostandthesumofcarryingamountofequityinvestmentspreviouslyheldintheacquireeandthenewinvestmentcostisadjustedtocapitalreserve.Ifthebalanceofcapitalreserveisnotsufficienttoabsorbthedifference,anyexcessisadjustedtoretainedearnings.Othercomprehensiveincomerecognizedforthepreviouslyheldequityinvestmentsbyaccountingtreatmentofequitymethodoravailable-for-salefinancialassetsisnotsubjecttoaccountingtreatmenttemporarily.Foralong-termequityinvestmentacquiredthroughbusinesscombinationnotinvolvingenterprisesundercommoncontrol,theinvestmentcostofthelong-termequityinvestmentacquiredisthecostofacquisition.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
16.Long-termequityinvestments-continued
16.2Determinationofinvestmentcost-continuedTheabsorbingparty'sorpurchaser'sintermediaryexpenses(feesinrespectofauditing,legalservices,valuationandconsultancyservices,etc.)andotheradministrativeexpensesattributabletothebusinesscombinationarerecognizedinprofitorlossintheperiodswhentheyareincurred.Thelong-termequityinvestmentacquiredotherwisethanthroughabusinesscombinationisinitiallymeasuredatitscost.Whentheentityisabletoexercisesignificantinfluenceorjointcontrol(butnotcontrol)overaninvesteeduetoadditionalinvestment,thecostoflong-termequityinvestmentsisthesumofthefairvalueofpreviously-heldequityinvestmentsdeterminedinaccordancewithAccountingStandardforBusinessEnterprisesNo.22-FinancialInstruments:
RecognitionandMeasurement(ASBENo.22)andtheadditionalinvestmentcost.
16.3Subsequentmeasurementandrecognitionofprofitorloss
16.3.1Along-termequityinvestmentaccountedforusingthecostmethodLong-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodintheCompany'sseparatefinancialstatements.AsubsidiaryisaninvesteethatiscontrolledbytheGroup.Underthecostmethod,along-termequityinvestmentismeasuredatinitialinvestmentcost.Additionalorwithdrawinginvestmentwouldaffectthecostoflong-termequityinvestment.Investmentincomeisrecognizedintheperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestee.
16.3.2Along-termequityinvestmentaccountedforusingtheequitymethodExceptassociateandjointventureinvestmentcompletelyorpartlyclassifiedasavailableforsale,andTheGroupaccountsforinvestmentinassociatesandjointventuresusingtheequitymethod.AnassociateisanentityoverwhichtheGrouphassignificantinfluenceandajointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthejointarrangement.Undertheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,noadjustmentismadetotheinitialinvestmentcost.WheretheinitialinvestmentcostislessthantheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,thedifferenceisrecognizedinprofitorlossfortheperiod,andthecostofthelong-termequityinvestmentisadjustedaccordingly.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
16.Long-termequityinvestments-continued
16.3Subsequentmeasurementandrecognitionofprofitorloss-continued
16.3.2Along-termequityinvestmentaccountedforusingtheequitymethod-continuedUndertheequitymethod,theGrouprecognizesitsshareoftheothercomprehensiveincomeandnetprofitorlossoftheinvesteefortheperiodasothercomprehensiveincomeandinvestmentincomeorlossrespectivelyfortheperiod,andthecarryingamountofthelong-termequityinvestmentisadjustedaccordingly.Thecarryingamountoftheinvestmentshallbereducedbytheportionofanyprofitdistributionsorcashdividendsdeclaredbytheinvesteethatisdistributedtotheinvestingenterprise.Theinvestingenterpriseshalladjustthecarryingamountofthelong-termequityinvestmentforotherchangesinowners'equityoftheinvestee(otherthannetprofitsorlosses,othercomprehensiveincomeandprofitdistribution),andincludethecorrespondingadjustmentincapitalreserve.TheGrouprecognizesitsshareoftheinvestee'snetprofitorlossbasedonthefairvalueoftheinvestee'sindividuallyidentifiableassetsattheacquisitiondateaftermakingappropriateadjustments.Wheretheaccountingpoliciesandaccountingperiodadoptedbytheinvesteearedifferentfromthoseoftheinvestingenterprise,theinvestingenterpriseshalladjustthefinancialstatementsoftheinvesteetoconformtoitsownaccountingpoliciesandaccountingperiod,andrecognizeothercomprehensiveincomeandinvestmentincomeorlossesbasedontheadjustedfinancialstatements.UnrealizedprofitsorlossesresultingfromtheGroup'stransactionsandassetsinvestedorsoldthatarenotrecognizedasbusinesstransactionswithitsassociatesandjointventuresarerecognizedasinvestmentincomeorlosstotheextentthatthoseattributabletotheGroup's,equityinterestareeliminated.However,unrealizedlossesresultingfromtheGroup'stransactionswithitsassociatesandjointventureswhichrepresentimpairmentlossesonthetransferredassetsarenoteliminated.TheGroupdiscontinuesrecognizingitsshareofnetlossesoftheinvesteeafterthecarryingamountofthelong-termequityinvestmenttogetherwithanylong-termintereststhatinsubstanceformpartofitsnetinvestmentintheinvesteearereducedtozero.ExceptthatiftheGrouphasincurredobligationstoassumeadditionallosses,aprovisionisrecognizedaccordingtotheobligationexpected,andrecordedintheinvestmentlossfortheperiod.Wherenetprofitsaresubsequentlymadebytheinvestee,theGroupresumesrecognizingitsshareofthoseprofitsonlyafteritsshareoftheprofitsexceedstheshareoflossespreviouslynotrecognized.
16.4Disposaloflong-termequityinvestmentsOndisposalofalong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandreceivableandthecarryingamountisrecognizedinprofitorlossfortheperiod.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,iftheremaininginterestafterdisposalisstillaccountedforusingtheequitymethod,othercomprehensiveincomepreviouslyrecognizedforusingtheequitymethodisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;owners'equityrecognizedduetochangesinotherowners'equityoftheinvestee(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
16.Long-termequityinvestments-continued
16.4Disposaloflong-termequityinvestments-continuedForlong-termequityinvestmentsaccountedforusingthecostmethod,iftheremaininginterestafterdisposalisstillaccountedforusingthecostmethod,othercomprehensiveincomepreviouslyrecognizedforusingtheequitymethodorinaccordancewiththestandardsfortherecognitionandmeasurementoffinancialinstrumentsbeforeobtainingthecontrolovertheinvestee,isaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;changesinotherowners'equityintheinvestee'snetassetsrecognizedundertheequitymethod(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.
17.InvestmentpropertiesInvestmentpropertyispropertyheldtoearnrentalsorforcapitalappreciationorboth.Itincludesalanduserightthatisleasedout;alanduserightheldfortransferuponcapitalappreciation;andabuildingthatisleasedout.Aninvestmentpropertyismeasuredinitiallyatcost.SubsequentexpendituresincurredforsuchinvestmentpropertyareincludedinthecostoftheinvestmentpropertyifitisprobablethateconomicbenefitsassociatedwithaninvestmentpropertywillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably,othersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.TheGroupusesthecostmodelforsubsequentmeasurementofinvestmentproperty,andadoptsadepreciationoramortizationpolicyfortheinvestmentpropertywhichisconsistentwiththatforbuildingsorlanduserights.Aninvestmentpropertyisderecognizedupondisposalorwhentheinvestmentpropertyispermanentlywithdrawfromuseandnofutureeconomicbenefitsareexpectedfromthedisposal.Whenaninvestmentpropertyissold,transferred,retiredordamaged,theGrouprecognizestheamountofanyproceedsondisposalnetofthecarryingamountandrelatedtaxesinprofitorlossfortheperiod.
18.Fixedassets
18.1RecognitioncriteriaforfixedassetsFixedassetsaretangibleassetsthatareheldforuseintheproductionorsupplyofgoodsorservices,forrentaltoothers,orforadministrativepurposes,andhaveusefullivesofmorethanoneaccountingyear.AfixedassetisrecognizedonlywhenitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthecostoftheassetcanbemeasuredreliably.Fixedassetsareinitiallymeasuredatcost.Uponbeingrestructuredintoastockcompany,thefixedassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
18.Fixedassets-continued
18.1Recognitioncriteriaforfixedassets-continuedSubsequentexpendituresincurredforthefixedassetareincludedinthecostofthefixedassetandifitisprobablethateconomicbenefitsassociatedwiththeassetwillflowtotheGroupandthesubsequentexpenditurescanbemeasuredreliably.Meanwhilethecarryingamountofthereplacedpartisderecognized.Othersubsequentexpendituresarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.
18.2DepreciationofeachcategoryoffixedassetsAfixedassetisdepreciatedoveritsusefullifeusingthestraight-linemethodstartingfromthemonthsubsequenttotheoneinwhichitisreadyforintendeduse.Theusefullife,estimatednetresidualvaluerateandannualdepreciationrateofeachcategoryoffixedassetsareasfollows:
| Category | Usefullives | Estimatedresidualvalue(%) | Annualdepreciationrate(%) |
| Portandterminalfacilities | 5-50years | 5.00 | 1.90-19.00 |
| Buildings | 10-30years | 5.00 | 3.17-9.50 |
| Machineryandequipment,furnitureandfixtureandotherequipment | 3-20years | 5.00 | 4.75-31.67 |
| Motorvehiclesandcargoships | 5-25years | 5.00 | 3.80-19.00 |
EstimatednetresidualvalueofafixedassetistheestimatedamountthattheGroupwouldcurrentlyobtainfromdisposaloftheasset,afterdeductingtheestimatedcostsofdisposal,iftheassetwerealreadyoftheageandintheconditionexpectedattheendofitsusefullife.
18.3OtherexplanationsIfafixedassetisupondisposalornofutureeconomicbenefitsareexpectedtobegeneratedfromitsuseordisposal,thefixedassetisderecognized.Whenafixedassetissold,transferred,retiredordamaged,theamountofanyproceedsondisposaloftheassetnetofthecarryingamountandrelatedtaxesisrecognizedinprofitorlossfortheperiod.TheGroupreviewstheusefullifeandestimatednetresidualvalueofafixedassetandthedepreciationmethodappliedatleastonceateachfinancialyear-end,andaccountforanychangeasachangeinanaccountingestimate.
19.ConstructioninprogressConstructioninprogressismeasuredatitsactualcosts.Theactualcostsincludevariousconstructionexpendituresduringtheconstructionperiod,borrowingcostscapitalizedbeforeitisreadyforintendeduseandotherrelevantcosts.Constructioninprogressisnotdepreciated.Constructioninprogressistransferredtoafixedassetwhenitisreadyforintendeduse.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
20.BorrowingCostsBorrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassetarecapitalizedwhenexpendituresforsuchassetandborrowingcostsareincurredandactivitiesrelatingtotheacquisition,constructionorproductionoftheassetthatarenecessarytopreparetheassetforitsintendeduseorsalehavecommenced.Capitalizationofborrowingcostsceaseswhenthequalifyingassetbeingacquired,constructedorproducedbecomesreadyforitsintendeduseorsale.Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetisinterruptedabnormallyandwhentheinterruptionisforacontinuousperiodofmorethan3months.Capitalizationissuspendeduntiltheacquisition,constructionorproductionoftheassetisresumed.Otherborrowingcostsarerecognizedasanexpenseintheperiodinwhichtheyareincurred.Wherefundsareborrowedunderaspecific-purposeborrowing,theamountofinteresttobecapitalizedistheactualinterestexpenseincurredonthatborrowingfortheperiodlessanybankinterestearnedfromdepositingtheborrowedfundsbeforebeingusedontheassetoranyinvestmentincomeonthetemporaryinvestmentofthosefunds.Wherefundsareborrowedundergeneral-purposeborrowings,theGroupdeterminestheamountofinteresttobecapitalizedonsuchborrowingsbyapplyingacapitalizationratetotheweightedaverageoftheexcessofcumulativeexpendituresontheassetovertheamountsofspecific-purposeborrowings.Thecapitalizationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Duringthecapitalizationperiod,exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencyareallcapitalized.Exchangedifferencesinconnectionwithgeneral-purposeborrowingsarerecognizedinprofitorlossintheperiodinwhichtheyareincurred.
21.Intangibleassets
21.1ValuationmethodandusefullifeofintangibleassetsAnintangibleassetismeasuredinitiallyatcost.Uponbeingrestructuredintoastockcompany,theintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Whenanintangibleassetwithafiniteusefullifeisavailableforuse,itsoriginalcostisamortizedoveritsestimatedusefullife.Intangibleassetswithuncertainservicelifewillnotbeamortize.Theterminaloperatingrightsareamortizedusingtheoutputmethod,thatis,amortizedthroughperiodsaccordingtotheratiooftheestimatedminimumguaranteedthroughputtotheestimatedminimumguaranteedtotalthroughputduringtheoperationperiod.Whentheestimatedminimumguaranteedthroughputcannotbemeasuredreliably,thestraight-linemethodwillbeusedforamortization.Anintangibleassetwithuncertainusefullifewillnotbeamortized.Theamortizationmethod,usefullifeandestimatednetresidualvalueofvariousintangibleassetsareasfollows:
| Category | AmortizationMethod | UsefulLife(year) | Residualvalue(%) |
| Landuserights | Straight-linemethod | 40-50 | - |
| Portoperatingright | Outputmethod/Straight-linemethod | 30-35 | - |
| Others | Straight-linemethod | 5-50 | - |
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Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortizationmethodattheendoftheyear,andmakesadjustmentswhennecessary.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
21.Intangibleassets-continued
21.2ResearchanddevelopmentexpenditureExpenditureduringtheresearchphaseisrecognizedasanexpenseintheperiodinwhichitisincurred.Expenditureduringthedevelopmentphasethatmeetsallofthefollowingconditionsatthesametimeisrecognizedasintangibleasset.Expenditureduringdevelopmentphasethatdoesnotmeetthefollowingconditionsisrecognizedinprofitorlossfortheperiod.
(1)Itistechnicallyfeasibletocompletetheintangibleassetsothatitwillbeavailableforuseorsale;
(2)TheGrouphastheintentiontocompletetheintangibleassetanduseorsellit;
(3)TheGroupcandemonstratethewaysinwhichtheintangibleassetwillgenerateeconomicbenefits,includingtheevidenceoftheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset;
(4)Theavailabilityofadequatetechnical,financialandotherresourcestocompletethe
developmentandtheabilitytouseorselltheintangibleasset;and
(5)Theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbe
reliablymeasured.Iftheexpenditurescannotbedistinguishedbetweentheresearchphaseanddevelopmentphase,theGrouprecognizesalloftheminprofitorlossfortheperiod.Thecostsofintangibleassetsgeneratedbytheinternalresearchonlyincludethetotalexpenditureincurredfortheperiodfromthetimepointofcapitalizationtotheintangibleassetsarereadyforintendeduse.Fortheidenticalintangibleasset,theexpendituresrecordedasexpensesbeforetheyqualifyforcapitalizationduringthedevelopmentprocessarenotadjusted.
22.Impairmentoflong-termassetsTheGroupassessesatthebalancesheetdatewhetherthereisanyindicationthatthelong-termequityinvestments,investmentpropertiesmeasuredatcostmethod,constructioninprogress,fixedassets,right-of-useassetsandintangibleassetswithafiniteusefullifemaybeimpaired.Ifthereisanyindicationthatsuchassetsmaybeimpaired,recoverableamountsareestimatedforsuchassets.Intangibleassetswithindefiniteusefullifeandintangibleassetsnotyetavailableforusearetestedforimpairmentannually,irrespectiveofwhetherthereisanyindicationthattheassetsmaybeimpaired.Recoverableamountisestimatedonindividualbasis.Ifitisnotpracticaltoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheassetgrouptowhichtheassetbelongswillbeestimated.Therecoverableamountofanassetisthehigherofitsfairvaluelesscostsofdisposalandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
22.Impairmentoflong-termassets-continuedIftherecoverableamountofanassetoranassetgroupislessthanitscarryingamount,thedeficitisaccountedforasanimpairmentlossandisrecognizedinprofitorloss.Goodwillistestedforimpairmentatleastattheendofeachyear.Forthepurposeofimpairmenttesting,goodwillisconsideredtogetherwiththerelatedassetsgroups,i.e.,goodwillisreasonablyallocatedtotherelatedassetsgroupsoreachofassetsgroupsexpectedtobenefitfromthesynergiesofthecombination.Intestinganassetsgroupwithgoodwillforimpairment,animpairmentlossisrecognizediftherecoverableamountoftheassetsgrouporsetsofassetsgroups(includinggoodwill)islessthanitscarryingamount.Theimpairmentlossisfirstlyallocatedtoreducethecarryingamountofanygoodwillallocatedtosuchassetsgrouporsetsofassetsgroups,andthentotheotherassetsofthegrouppro-ratabasisonthebasisofthecarryingamountofeachasset(otherthangoodwill)inthegroup.Oncetheimpairmentlossofabove-mentionedassetisrecognized,itshallnotbereversedinanysubsequentperiod.
23.Long-termprepaidexpensesLong-termprepaidexpensesrepresentexpensesincurredthatshouldbeborneandamortizedoverthecurrentandsubsequentperiods(togetherofmorethanoneyear).Long-termprepaidexpensesareamortizedusingthestraight-linemethodovertheexpectedperiodsinwhichbenefitsarederived.
24.ContractliabilitiesAcontractliabilityrepresentstheGroup'sobligationtotransfergoodsorservicestoacustomerforwhichtheGrouphasreceivedconsideration(oranamountofconsiderationisdue)fromthecustomer.Acontractassetandacontractliabilityrelatingtothesamecontractareaccountedforandpresentedonanetbasis.
25.Employeebenefits
25.1Theaccountingtreatmentofshort-termemployeebenefitsActuallyoccurredshort-termemployeebenefitsarerecognizedasliabilities,withacorrespondingchargetotheprofitorlossfortheperiodorinthecostsofrelevantassetsintheaccountingperiodinwhichemployeesprovideservicestotheGroup.StaffwelfareexpensesincurredbytheGrouparerecognizedinprofitorlossfortheperiodorthecostsofrelevantassetsbasedontheactuallyoccurredamountswhenitactuallyoccurred.Non-monetarystaffwelfareexpensesaremeasuredatfairvalue.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
25.Employeebenefits-continued
25.1Theaccountingtreatmentofshort-termemployeebenefits-continuedPaymentmadebytheGroupofsocialsecuritycontributionsforemployeessuchaspremiumsorcontributionsonmedicalinsurance,workinjuryinsuranceandmaternityinsurance,etc.andpaymentsofhousingfunds,aswellasunionrunningcostsandemployeeeducationcostsprovidedinaccordancewithrelevantrequirements,arecalculatedaccordingtoprescribedbasesandpercentagesindeterminingtheamountofemployeebenefitsandrecognizedasrelevantliabilities,withacorrespondingchargetotheprofitorlossfortheperiodorthecostsofrelevantassetsintheaccountingperiodinwhichemployeesprovideservices.
25.2Theaccountingtreatmentofpost-employmentbenefitsPost-employmentbenefitsareclassifiedintodefinedcontributionplansanddefinedbenefitplans.DuringtheaccountingperiodofrenderingservicetoemployeesoftheGroup,amountwhichshouldbepaidaccordingtodefinedcontributionplansisrecognizedasliabilities,andrecognizedinprofitorlossorrelatedcostsofassets.DuringtheaccountingperiodofrenderingservicetoemployeesoftheGroup,amountwhichshouldbepaidaccordingtodefinedcontributionplansisrecognizedasliabilities,andrecognizedinprofitorlossorrelatedcostsofassets.Fordefinedbenefitplans,theGroupcalculatesdefinedbenefitplanobligationsusingprojectedunitcreditmethodandtheservicecostresultingfromemployeeserviceinthecurrentperiodisrecordedinprofitorlossorthecostofrelatedassets.Definedbenefitcostsarecategorizedasfollows:
?Servicecost(includingcurrentservicecost,pastservicecost,aswellasgainsandlosseson
settlements);?Netinterestofnetliabilitiesorassetsofdefinedbenefitplan(includinginterestincomeofplannedassets,interestexpensesofdefinedbenefitplanliabilitiesandeffectofassetceiling);and?Changesarisingfromremeasurementofnetliabilitiesornetassetsofdefinedbenefitplans.Servicecostsandnetinterestofnetliabilitiesandnetassetsofdefinedbenefitplansarerecognizedinprofitorlossofcurrentperiodorcostsofrelatedassets.Remeasurementofthenetdefinedbenefitliability(asset)(includingactuarialgainsandlosses,thereturnonplanassets,excludingamountsincludedinnetinterestonthenetdefinedbenefitliability(asset),andanychangeintheeffectoftheassetceiling,excludingamountsincludedinnetinterestonthenetdefinedbenefitliability(asset))arerecognizedinothercomprehensiveincome.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
25.Employeebenefits-continued
25.3TheaccountingtreatmentofterminationbenefitsWhentheGroupprovidesterminationbenefitstoemployees,employeebenefitliabilitiesarerecognizedforterminationbenefits,withacorrespondingchargetotheprofitorlossfortheperiodattheearlierof:(1)whentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseoftheterminationplanoracurtailmentproposal;and(2)whentheGrouprecognizescostsorexpensesrelatedtorestructuringthatinvolvesthepaymentofterminationbenefits.
26.ProvisionsProvisionsarerecognizedwhentheGrouphasapresentobligationrelatedwithcontingencies,itisprobablethattheGroupwillberequiredtosettlethatobligationcausinganoutflowofeconomicbenefits,andareliableestimatecanbemadeoftheamountoftheobligation.Theamountrecognizedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatbalancesheetdate,takingintoaccounttherisks,uncertaintiesandtimevalueofmoneysurroundingtheobligation.Whenaprovisionismeasuredusingthecashflowsestimatedtosettlethepresentobligation,itscarryingamountisthepresentvalueofthosecashflowswheretheeffectofthetimevalueofmoneyismaterial.Whensomeoralloftheeconomicbenefitsrequiredtosettleaprovisionareexpectedtoberecoveredfromathirdparty,areceivableisrecognizedasanassetifitisvirtuallycertainthatreimbursementwillbereceivedandtheamountofthereceivableshouldnotexceedthecarryingamountofprovisions.
27.RevenueTheGroup'srevenueismainlyfromthefollowingbusinesstypes:
(1)Portservice;
(2)Bondedlogisticsservice
(3)Otherbusinesssuchaspropertydevelopmentandinvestment.TheGrouprecognizesrevenuebasedonthetransactionpriceallocatedtosuchperformanceobligationwhenaperformanceobligationissatisfied,i.e.when"control"ofthegoodsorservicesunderlyingtheparticularperformanceobligationistransferredtothecustomer.AperformanceobligationrepresentsthecommitmentthatagoodandservicethatisdistinctshallbetransferredbytheGrouptothecustomer.TransactionpricereferstotheconsiderationthattheGroupisexpectedtochargeduetothetransferofgoodsorservicestothecustomer,butitdoesnotincludepaymentsreceivedonbehalfofthirdpartiesandamountsthattheGroupexpectstoreturntothecustomer.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
27.Revenue-continuedIfoneofthefollowingcriteriaismetanditisaperformanceobligationperformedovertime,theGrouprecognizestherevenuewithinacertainperiodoftimeaccordingtotheprogressoftheperformance:(1)thecustomersimultaneouslyreceivesandconsumesthebenefitsprovidedbytheGroup'sperformanceastheGroupperforms;(2)thecustomerisabletocontrolthegoodsunderconstructioninthecourseoftheGroup'sperformance;(3)thegoodsproducedbytheGroupduringtheperformanceofthecontractareirreplaceableandtheGrouphastherighttochargefortheaccumulatedpartofthecontractthathasbeenperformedsofarduringthewholecontractperiod.Otherwise,theGrouprecognizesrevenueatacertainpointintimewhen"control"ofthegoodsorservicesistransferredtothecustomer.TheGroupadoptsoutputmethod,i.e.thevalueofgoodsorservicestransferredtocustomerstodeterminetheappropriateprogressofperformance.Wheretheprogresscannotbedeterminedreasonably,therevenueisrecognizedbasedontheamountofcostthatisexpectedtobecompensatedbasedonthecostalreadyincurred,untiltheprogressofperformanceisreasonablydetermined.Ifthecontractincludestwoormoreperformanceobligations,atcontractinception,theGroupallocatesthetransactionpricetosingleperformanceobligationaccordingtorelativeproportionofthestand-alonesellingpricesofthegoodsorservicespromisedbysingleperformanceobligation.However,wherethereisconclusiveevidencethatthecontractdiscountorvariableconsiderationisonlyrelatedtooneormore(notall)performanceobligationsinthecontract,theGroupshallallocatethecontractdiscountorvariableconsiderationtorelevantoneormoreperformanceobligations.Thestand-alonesellingpriceisthepriceatwhichtheGroupwouldsellapromisedgoodorserviceseparatelytoacustomer.Ifastand-alonesellingpriceisnotdirectlyobservable,theGroupshallconsiderallinformationthatisreasonablyavailabletotheGroupandmaximizetheuseofobservableinputsandapplyestimatesmethodsconsistentlyinsimilarcircumstances.Forcontractsthatcontainvariableconsideration(e.g.salesdiscount),theGroupestimatestheamountofconsiderationusingeithertheexpectedvalueorthemostlikelyamount.Thetransactionpricethatincludesvariableconsiderationisonlytotheextentthatitishighlyprobablethatsuchaninclusionwillnotresultinasignificantrevenuereversalinthefuturewhentheuncertaintyissubsequentlyresolved.Attheendofeachreportingperiod,theGroupreevaluatesthevariableconsiderationincludedinthetransactionprice.Fornon-cashconsiderationfromcustomer,theGrouprecognizesthetransactionpricebasedonthefairvalueofthenon-cashconsideration.Wherethefairvalueofthenon-cashconsiderationcannotbereasonablyestimated,theGrouprecognizesthetransactionpriceindirectlybyreferencetothestand-alonepriceofthepromisedgoodsorservicespromisedtransferredtothecustomer.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
27.Revenue-continuedIfthecontractincludessignificantfinancingcomponent,theGroupdeterminesthetransactionpricebasedontheamountpayableundertheassumptionthatthecustomerpaysthatamountpayableincashwhen"control"ofthegoodsorservicesisobtainedbythecustomer.Thedifferencebetweenthetransactionpriceandthecontractconsiderationshallbeamortizedwithinthecontractperiodusingeffectiveinterestrate.IftheGroupexpects,atcontractinception,thattheperiodbetweenwhentheGrouptransfersapromisedgoodorservicetoacustomerandwhenthecustomerpaysforthatgoodorservicewillbeoneyearorless,theGroupneedsnottoconsiderthesignificantfinancingcomponent.TheGroupdetermineswhetheritisaprincipaloranagentatthetimeofthetransactionbasedonwhetheritownsthe"control"ofthegoodsorservicesbeforethetransferofsuchgoodsorservicestothecustomer.TheGroupisaprincipalifitcontrolsthespecifiedgoodorservicebeforethatgoodorserviceistransferredtoacustomer,andtherevenueshallberecognizedbasedonthetotalconsiderationreceivedorreceivable;otherwise,theGroupisanagent,andtherevenueshallberecognizedbasedontheamountofcommissionorhandlingfeethatisexpectedtobecharged,andsuchamountisdeterminedbasedonthenetamountofthetotalconsiderationreceivedorreceivableafterdeductingthepricespayabletootherrelatedpartiesoraccordingtotheestablishedcommissionamountorproportion.Wherepaymentisreceivedinadvance,theadvancepaymentreceivedshallberecordedasaliabilityandrecognizedasrevenuewhentherelevantperformanceobligationissatisfied.Theaboveamountwillberecognizedasrevenueproportionatelyinaccordancewiththemodelofcontractualrightsexercisedbythecustomerif(1)theGroup'sadvancepaymentdoesnotneedtobereturned,(2)thecustomermaywaiveallorpartofitscontractualrights,and(3)theGroupexpectstobeentitledtotheamountrelatedtothecontractualrightswaivedbythecustomer.Otherwise,thebalanceoftheliabilitiesisrecognizedasrevenuebytheGrouponlywhenthepossibilityofthecustomerrequestingthesatisfactionoftheremainingperformanceobligationsisextremelyremote.
28.Contractcosts
28.1CoststofulfillacontractIfthecostsincurredinfulfillingacontractarenotwithinthescopeofotherstandardotherthantherevenuestandard,theGroupshallrecognizedanassetfromthecostsincurredtofulfillacontractonlyifthosecostsmeetallofthefollowingcriteria:(1)thecostsrelatedirectlytoacontractortoananticipatedcontractthattheGroupcanspecificallyidentify;(2)thecostsgenerateorenhanceresourcesoftheentitythatwillbeusedinsatisfyingperformanceobligationsinthefuture;and(3)thecostsareexpectedtoberecovered.Theassetmentionedaboveshallbeamortizedonabasisthatisconsistentwiththetransfertothecustomerofthegoodsorservicestowhichtheassetrelatesandrecognizedinprofitorlossfortheperiod.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
28.Contractcosts-continued
28.2ImpairmentofcontractcostsIndeterminationofimpairmentlossesofassetsrelatedtocontractcosts,firstlyimpairmentlossesofotherassetsrelatedtothecontractrecognizedbasedonotherrelevantaccountingstandards;secondly,theGroupshallrecognizedanimpairmentlosstotheextentthatthecarryingamountofanassetexceeds:(1)theremainingamountofconsiderationthattheGroupexpectstoreceiveinexchangeforthegoodsorservicestowhichtheassetrelates;(2)theestimatedcoststhatrelatetoprovidingthosegoodsorservices.TheGroupshall,aftertheimpairmenthasbeenprovided,recognizedinprofitorlossareversalofsomeorallofanimpairmentlosspreviouslyrecognizedwhentheimpairmentconditionsnolongerexistorhaveimproved.Theincreasedcarryingamountoftheassetshallnotexceedthecarryingamountthatwouldhavebeendeterminedifnoimpairmentlosshadbeenrecognizedpreviously.
29.TypesandaccountingmethodsofgovernmentgrantsGovernmentgrantsaretransferofmonetaryassetsornon-monetaryassetsfromthegovernmenttotheGroupatnoconsideration.AgovernmentgrantisrecognizedonlywhentheGroupcancomplywiththeconditionsattachedtothegrantandtheGroupwillreceivethegrant.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.
29.1TheaccountingtreatmentofgovernmentgrantsrelatedtoassetsGovernmentgrants,suchasspecialfundsformodernlogisticsprojectandspecialfundsforenergy-savingandemissionreductionoftransportation,aregovernmentgrantsrelatedtoassetsastheyareallrelatedtotheconstructionanduseofassets.Agovernmentgrantrelatedtoanassetisrecognizedasdeferredincome,andevenlyamortizedtoprofitorlossovertheusefullifeoftherelatedasset.
29.2TheaccountingtreatmentofgovernmentgrantsrelatedtoincomeTheGroup'sgovernmentgrant,suchasfinancialsupportfundsofbusinesstaxconvertedtoVATandrewardforenergysaving,ifusedtocompensatetherelatedexpensesorlossestobeincurredinsubsequentperiods,isdeterminedtobegovernmentgrantrelatingtoincome.Agovernmentgrantrelatingtoincome,ifusedtocompensatetherelatedcost,expensesorlossestobeincurredinsubsequentperiods,isdeterminedasdeferredincomeandrecognizedinprofitorlossovertheperiodsinwhichtherelatedcostsarerecognized;ifusedtocompensatetherelatedcost,expensesorlossesalreadyincurred,isrecognizedimmediatelyinprofitorlossfortheperiod.
-50-
AgovernmentgrantrelatingtotheGroup'sdailyactivities,isrecognizedinotherincomeinlinewiththenatureofeconomictransaction.AgovernmentgrantnotrelatingtotheGroup'sdailyactivities,isrecognizedinnon-operatingincome.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
30.Deferredtaxassets/deferredtaxliabilitiesTheincometaxexpensesincludecurrentincometaxanddeferredincometax.
30.1CurrentincometaxAtthebalancesheetdate,currentincometaxliabilities(orassets)forthecurrentandpriorperiodsaremeasuredattheamountexpectedtobepaid(orrecovered)accordingtotherequirementsoftaxlaws.
30.2DeferredtaxassetsanddeferredtaxliabilitiesFortemporarydifferencesbetweenthecarryingamountsofcertainassetsorliabilitiesandtheirtaxbase,orbetweenthenilcarryingamountofthoseitemsthatarenotrecognizedasassetsorliabilitiesandtheirtaxbasethatcanbedeterminedaccordingtotaxlaws,deferredtaxassetsandliabilitiesarerecognizedusingthebalancesheetliabilitymethod.Deferredtaxliabilitiesaregenerallyrecognizedforalltaxabletemporarydifferences.Deferredtaxassetsfordeductibletemporarydifferencesarerecognizedtotheextentthatitisprobablethattaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized.However,fortemporarydifferencesassociatedwiththeinitialrecognitionofgoodwillandtheinitialrecognitionofanassetorliabilityarisingfromatransaction(notabusinesscombination)thataffectsneithertheaccountingprofitnortaxableprofits(ordeductiblelosses)atthetimeoftransaction,nodeferredtaxassetorliabilityisrecognized.Fordeductiblelossesandtaxcreditsthatcanbecarriedforward,deferredtaxassetsarerecognizedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductiblelossesandtaxcreditscanbeutilized.Deferredtaxliabilitiesarerecognizedfortaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiariesandassociates,andinterestsinjointventures,exceptwheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifferenceanditisprobablethatthetemporarydifferencewillnotreverseintheforeseeablefuture.Deferredtaxassetsarisingfromdeductibletemporarydifferencesassociatedwithsuchinvestmentsandinterestsareonlyrecognizedtotheextentthatitisprobablethattherewillbetaxableprofitsagainstwhichtoutilizethebenefitsofthetemporarydifferencesandtheyareexpectedtoreverseintheforeseeablefuture.Atthebalancesheetdate,deferredtaxassetsandliabilitiesaremeasuredatthetaxratesapplicableintheperiodinwhichtheassetisrealizedortheliabilityissettledaccordingtotaxlaws.Currentanddeferredtaxexpensesorincomearerecognizedinprofitorlossfortheperiod,exceptwhentheyarisefromtransactionsoreventsthataredirectlyrecognizedinothercomprehensiveincomeorinequity,inwhichcasetheyarerecognizedinothercomprehensiveincomeorinequity,andwhentheyarisefrombusinesscombinations,inwhichcasetheyadjustthecarryingamountofgoodwill.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
30.Deferredtaxassets/deferredtaxliabilities-continued
30.2Deferredtaxassetsanddeferredtaxliabilities-continuedAtthebalancesheetdate,thecarryingamountofdeferredtaxassetsisreviewedandreducedifitisnolongerprobablethatsufficienttaxableprofitswillbeavailableinthefuturetoallowthebenefitofdeferredtaxassetstobeutilized.Anysuchreductioninamountisreversedwhenitbecomesprobablethatsufficienttaxableprofitswillbeavailable.
30.3OffsetofincometaxWhentheGrouphasalegalrighttosettleonanetbasisandintendseithertosettleonanetbasisortorealizetheassetsandsettletheliabilitiessimultaneously,currenttaxassetsandcurrenttaxliabilitiesareoffsetandpresentedonanetbasis.WhentheGrouphasalegalrighttosettlecurrenttaxassetsandliabilitiesonanetbasis,anddeferredtaxassetsanddeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxassetsandliabilitiesonanetbasisortorealizetheassetsandliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxassetsorliabilitiesareexpectedtobereversed,deferredtaxassetsanddeferredtaxliabilitiesareoffsetandpresentedonanetbasis.
31.LeasesLeaseisacontractthatconveystherighttouseanassetforaperiodoftimeinexchangeforconsideration.Forcontractsthataresignedormodifiedafterthedateofinitialapplication,atinception/modificationofthecontracts,theGroupassesseswhetherthecontractis,orcontains,alease.Unlessthetermsandconditionsofthecontractarechanged,theGroupdoesnotreassesswhetheracontractis,orcontains,alease.
31.1TheGroupasLessee
31.1.1SeparatingcomponentsofaleaseIfacontractcontainsaleasecomponentandoneormorenon-leasecomponents,theGroupallocatestheconsiderationinthecontracttoeachleasecomponentonthebasisoftherelativestand-alonepriceoftheleasecomponentsandtheaggregatestand-alonepriceofthenon-leasecomponents.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
31.Leases-continued
31.1TheGroupasLessee-continued
31.1.2Right-of-useassetsExceptforshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,atthecommencementdateofthelease,theGrouprecognizesaright-of-useassets.ThecommencementdateoftheleaseisthedateonwhichalessormakesanunderlyingassetavailableforusebytheGroup.TheGroupmeasurestheright-of-useassetsatcost.Thecostoftheright-of-useassetscomprises:
?theamountoftheinitialmeasurementoftheleaseliabilities;?anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentives;?anyinitialdirectcostsincurredbytheGroup;?anestimateofcoststobeincurredbythelesseeindismantlingandremovingtheunderlying
asset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.Right-of-useassetsaredepreciatedbytheGroupinaccordancewiththeASBENo.4FixedAssets.IftheGroupisreasonablycertain,thattheleasewilltransferownershipoftheunderlyingassettotheGroupbytheendoftheleaseterm,theright-of-useassetsisdepreciatedfromthecommencementdatetotheendoftheusefullifeoftheunderlyingasset.Otherwise,theright-of-useassetsisdepreciatedfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetsortheendoftheleaseterm.TheGroupappliesASBENo.8ImpairmentofAssets,todeterminewhethertheright-of-useassetsareimpairedandtoaccountforanyimpairmentlossidentified.
31.1.3LeaseliabilitiesExceptforshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,atthecommencementdateofthelease,theGroupmeasurestheleaseliabilitiesatthepresentvalueoftheleasepaymentsthatarenotpaidatthatdate.Iftheinterestrateimplicitintheleasecannotbereadilydetermined,thelesseeshallusethelessee'sincrementalborrowingrate.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
31.Leases-continued
31.1TheGroupasLessee-continued
31.1.3Leaseliabilities-continuedTheleasepaymentscomprisethefollowingpaymentsbytheGroupfortherighttousetheunderlyingassetduringtheleaseterm:
?fixedpayments(includingin-substancefixedpayments),lessanyleaseincentives;?variableleasepaymentsthatdependonanindexorarate;?theexercisepriceofapurchaseoptioniftheGroupisreasonablycertaintoexercisethat
option;?paymentsforterminatingthelease,iftheleasetermreflectstheGroupexercisingan
optiontoterminatethelease;?amountsexpectedtobepayablebytheGroupunderresidualvalueguarantees.Variableleasepaymentsthatdependonanindexorarate,areinitiallymeasuredusingtheindexorrateasatthecommencementdate.Variableleasepaymentsnotincludedinthemeasurementoftheleaseliabilities,arerecognizedinprofitorloss,orinthecostofrelevantassets,intheperiodofthosepayments.Interestontheleaseliabilitiesineachperiodduringtheleasetermiscalculatedbyaconstantperiodicrateofinterestontheremainingbalanceoftheleaseliabilities.Afterthecommencementdate,ifoneofthefollowingoccurs,theleaseliabilityisremeasuredbytheGroupwiththeadjustmenttotheright-of-useasset.Ifthecarryingamountoftheright-of-useassetisreducedtozeroandthereisfurtherreductioninthemeasurementoftheleaseliability,theremainingremeasurementshouldberecognizedinprofitorloss.?thereisachangeintheleaseterm,orintheassessmentofanoptiontopurchasethe
underlyingasset,theGroupremeasurestheleaseliabilities,onthebasisoftherevisedlease
termandthereviseddiscountrate;?thereisachangeintheamountsexpectedtobepayableunderaresidualvalueguarantee,or
infutureleasepaymentsresultingfromachangeinanindexorarateusedtodetermine
thosepayments,theGroupremeasurestheleaseliabilities,onthebasisoftherevisedlease
paymentsandtheunchangeddiscountrate,unlessthechangeintheleasepaymentsresults
fromachangeinfloatinginterestrates,inwhichcaseareviseddiscountisappliedtothe
presentvalue.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
31.Leases-continued
31.1TheGroupasLessee-continued
31.1.4Short-termleasesandleasesforwhichtheunderlyingassetisoflowvalueTheGroupelectsnottorecognizeright-of-useassetsorleaseliabilitiesforshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,i.e.portandterminalfacilities,buildings,machineryandequipment,furnitureandfixtureandotherequipment,motorvehiclesandcargoships,othershort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue.Ashorts-termleaseisaleasethat,atthecommencementdate,hasaleasetermof12monthsorless.Aleaseforwhichtheunderlyingassetisoflowvalueisthat,thevalueoftheunderlyingassetislowwhenitisnew.Forshort-termleasesandleasesforwhichtheunderlyingassetisoflowvalue,theGrouprecognizestheleasepaymentsassociatedwiththoseleasesasanexpenseorcostofrelevantassetonastraight-linebasisovertheleaseterm.
31.1.5LeasemodificationsAleasemodificationshouldbeaccountedforasaseparateleaseifbothofthefollowingapply:
?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;and?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alone
pricefortheincreaseinscopeandanyappropriateadjustmentstothatstand-alonepriceaccordingtothecircumstancesoftheparticularcontractForaleasemedicationthatisnotaccountedforasaseparatelease,attheeffectivedateoftheleasemodification,theGroupshouldallocatetheconsiderationinthemodifiedcontract,determinetheleasetermofthemodifiedleaseandremeasuretheleaseliabilitybydiscountingtherevisedpaymentsusingareviseddiscountrate.Forleasemodificationsthatdecreasethescopeoftheleaseornarrowthetermofthelease,theGroupshoulddecreasethecarryingamountoftheright-of-useassetwithanygainorlossrelatingtothepartialorfullterminationoftheleaseshouldberecognizedinprofitorloss.Forremeasurementofleaseliabilitiesfromallotherleasemodifications,acorrespondingadjustmentismadetothecarryingamountoftheright-of-useasset.
31.2TheGroupasLessor
31.2.1SeparatingcomponentsofaleaseForacontractthatcontainsleaseandnon-leasecomponents,theGroupshallallocatetheconsiderationinthecontractinaccordancewiththeallocationofthetransactionpriceundertherevenuestandard,onthebasisoftherelativestand-alonepriceoftheleasecomponentsandtheaggregatestand-alonepriceofthenon-leasecomponents.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
31.Leases-continued
31.2TheGroupasLessor-continued
31.2.2ClassificationofleasesLeasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownership.Allotherleasesareclassifiedasoperatingleases.
31.2.2.1TheGroupaslessorunderoperatingleasesTheGrouprecognizesleasepaymentsfromoperatingleasesasincomeonastraight-linebasis.TheGroupcapitalizesinitialdirectcostsincurredinobtaininganoperatingleaseandrecognizesthosecostsasanexpenseovertheleasetermonthesamebasisastheleaseincome.VariableleasereceiptsrelatingtoanoperatingleasenotincludedintheleasereceiptsarerecognizedinprofitorlossbytheGroupwhenincurred.
31.2.2.2TheGroupaslessorunderfinanceleasesAtthecommencementdate,theGrouprecognizesafinanceleasereceivableattheamountequaltothenetinvestmentintheleasewithfinanceleaseassetsderecognized.Thenetinvestmentintheleaseisthesumofanyunguaranteedresidualvalueandleasepaymentsreceivablefromthecommencementdate,discountedattheinterestrateimplicitinthelease.TheamountoftheleasepaymentsreceivablereferstotheamountthattheGroupshouldcollectfromthelesseeforthepurposeoftransferringtheleasedassetsduringtheleaseterm,including:
?fixedpayments(includingin-substancefixedpayments)paidbythelessee,lessanylease
incentives;?variableleasepaymentsthatdependonanindexorarate;?theexercisepriceofapurchaseoption,providedthatitisreasonablydeterminedthatthe
lesseewillexercisetheoption;?thelesseeexercisestheamounttobepaidfortheterminationoftheleaseoption,provided
thattheleasetermreflectsthelessee'sexerciseoftheoptiontoterminatethelease;?theresidualvalueoftheguaranteeprovidedbythelessee,thepartyconcernedwiththe
lesseeandtheindependentthirdpartywiththefinancialabilitytoperformtheguarantee
obligation.Variablepaymentsreceivablenotincludedinthenetinvestmentintheleasearerecognizedinprofitorlosswhentheyarise.InterestincomeforeachperiodovertheleasetermisrecognizedbytheGroupatthefixedperiodicrate.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
31.Leases-continued
31.2TheGroupasLessor-continued
31.2.3SubleasesAsalessorofthesublease,theGroupaccountsfortheoriginalleasecontractandthesubleasecontractastwoseparatecontracts.TheGroupclassifiesthesubleasesbasedontheright-of-useassetsgeneratingfromtheoriginalleaseratherthantheunderlyingassetsoftheoriginallease.
31.2.4LeasemodificationsTheGroupaccountsforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyleaseadvancesorreceivablesrelatingtotheoriginalleaseastheleasereceiptsforthenewlease.TheGroupshouldaccountforamodificationtoafinanceleaseasaseparateleaseifboth:
?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets;and?Theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alone
pricefortheincreaseinscopewithanyappropriateadjustmenttothatstand-aloneprice.Foramodificationtoafinanceleasethatisnotaccountedforasaseparatelease,theGroupshouldaccountforthemodificationasfollows:
?iftheleasewouldhavebeenclassifiedasanoperatingleasehadthemodificationbeeneffect
attheinceptiondate,theGroupshouldaccountfortheleasemodificationasanewlease
fromtheeffectivedateofthemodification,andmeasurethecarryingamountofthe
underlyingassetasthenetinvestmentintheleasebeforetheeffectivedateofthelease
modification.?Iftheleasewouldhavebeenclassifiedasanoperatingleaseifthemodificationhadbeenin
effectattheinceptiondate,theGroupshouldapplytherequirementsofcontract
modificationandrenegotiationundertheASBENo.22FinancialInstruments:Recognition
andMeasurement.
31.2.5Saleandleasebacktransactions
31.2.5.1TheGroupastheseller-lesseeTheGroupappliestherequirementsoftherevenuestandardtodeterminewhetherthetransferofanassetisaccountedforasasaleofthatasset.Ifthetransferofanassetdoesnotconstituteasale,theGroupshouldcontinuetorecognizethetransferredassetsandshouldrecognizeafinancialliabilityequaltothetransferproceedsapplyingASBENo.22FinancialInstruments:RecognitionandMeasurement.Ifthetransferofanassetisasale,theGroupshouldmeasuretheright-of-useassetarisingfromtheleasebackattheproportionofthepreviouscarryingamountoftheassetthatrelatestotherightofuse,andrecognizeonlytheamountofanygainorlossthatrelatestotherightstransferredtothelessor.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
32.ExchangeofNon-MonetaryAssetsWhereanon-monetaryassetstransactionsatisfiesthefollowingconditionsatthesametime,itshouldcalculatedbasedonfairvalue.Thetransactioniscommercialinnatureandthefairvalueoftheassetsreceivedorsurrenderedcanbemeasuredreliably.Thefairvalueoftheassetssurrenderedandrelevantpayabletaxesshallberegardedasthetransactioncostoftheassetsreceived.Forassetssurrendered,thedifferencebetweenthefairvalueandthecarryingvalueoftheassetsurrenderedshallberecordedintotheprofitorlossofthecurrentperiod.Ifanyexactevidenceshowingthatthefairvalueoftheassetsreceivedismorereliable,thecostofassetsreceivedandsurrenderedshallbecalculatedasdifferentway.Forassetsreceived,itscostshallbecalculatedbasedonfairvalueofassetsreceivedandrelevantpayabletaxes.Fortheassetssurrendered,thedifferencebetweenthefairvalueoftheassetsreceivedandthecarryingvalueoftheassetsurrenderedshallberecordedintotheprofitorlossofthecurrentperiod.Whereanon-monetaryassetstransactiondoesnotmeettheconditionsasprescribed,thecarryingvalueandrelevantpayabletaxesoftheassetssurrenderedshallbethecostoftheassetsreceivedandnoprofitorlossisrecognized.
33.DiscontinuedOperationDiscontinuedoperationreferstotheseparatelyidentifiablecomponentsthathavebeendisposedoforclassifiedasheldforsaleandmeetoneofthefollowingconditions:
(1)Thecomponentrepresentsanindependentmainbusinessoramajorbusinessarea;
(2)Thiscomponentisapartofarelatedplanthatintendstodisposeanindependentmainbusinessoraseparatemainoperatingarea;
(3)Thiscomponentisasubsidiaryacquiredexclusivelyforresale.Profitsorlossesfromdiscontinuedoperationsarepresentedseparatelyintheincomestatementfromcontinuingoperations.Profitsandlossesfromoperationsordisposals(e.g.impairmentlossesandreversalsofdiscontinuedoperations)arepresentedunderdiscontinuedoperations.Fordiscontinuedoperationspresentedinthecurrentperiod,theinformationpreviouslyundercontinuingoperationsispresentedunderdiscontinuedoperationsbytheGroupinthefinancialstatementsforthecomparableaccountingperiod.
34.SafetyProductionCostAccordingtotheAdministrativeRulesonProvisionandUseofEnterpriseSafetyProductionCostjointlyissuedbytheMinistryofFinanceandtheStateAdministrationofWorkSafetyon14February2012(filedasCaiQi[2012]No.16),safetyproductioncostsetasidebytheGroupisdirectlyincludedinthecostofrelevantproductsorrecognizedinprofitorlossfortheperiod,aswellasthespecialreserve.Whensafetyproductioncostsetasideisutilized,ifthecostsincurredcanbecategorizedasexpenditure,thecostsincurredshouldbechargedagainstthespecialreserve.Ifthecostssetasideareusedtobuildupfixedassets,thecostsshouldbechargedtoconstructioninprogress,andreclassifiedtofixedassetswhenthesafetyprojectsarereadyforintendeduse.Meantime,expendituresinbuildingupfixedassetsaredirectlychargedagainstthespecialreservewiththeaccumulateddepreciationrecognizedatthesameamount.Depreciationwillnotbemadeinthefutureperiodonsuchfixedassets.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
35.Criticaljudgmentsinapplyingaccountingpoliciesandkeyassumptionsand
uncertaintiesinaccountingestimatesIntheapplicationofaccountingpoliciesassetoutinNote(III),theCompanyisrequiredtomakejudgments,estimatesandassumptionsaboutthecarryingamountsofitemsinthefinancialstatementsthatcannotbemeasuredaccurately,duetotheinternaluncertaintyoftheoperatingactivities.Thesejudgments,estimatesandassumptionsarebasedonhistoricalexperiencesoftheCompany'smanagementaswellasotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.TheCompanyregularlyreviewsthejudgments,estimatesandassumptionsonagoingconcernbasis.Changesinaccountingestimateswhichonlyaffectthecurrentperiodshouldberecognizedincurrentperiod;changeswhichnotonlyaffectthecurrentbutthefutureperiodsshouldberecognizedincurrentandfutureperiods.Atthebalancesheetdate,keyassumptionsanduncertaintiesthatarelikelytoleadtosignificantadjustmentstothebookvaluesofassetsandliabilitiesinthefutureare:
GoodwillimpairmentForthepurposeofimpairmenttesting,thepresentvalueoftheexpectedfuturecashflowsoftheassetsgrouporportfolioincludinggoodwillshallbecalculated,andsuchexpectedfuturecashflowsshallbeestimated.Meantime,apre-taxrateshallbedeterminedthatshouldreflectthetimevalueofmoneyonthecurrentmarketandthespecificinterestrisks.RecognitionofdeferredtaxTheGroupcalculatesandmakesprovisionfordeferredincometaxliabilitiesaccordingtotheprofitdistributionplanofsubsidiaries,associatesandthejointventuressubjecttotherelatedlaw.Forretainedearningswhicharenotallocatedbytheinvestmentcompany,sincetheprofitswillbeusedtoinvestthecompany'sdailyoperationandfuturedevelopment,nodeferredincometaxliabilitiesarerecognized.Iftheactuallydistributedprofitsinthefuturearemoreorlessthanthoseexpected,correspondingdeferredtaxliabilitieswillberecognizedorreversedattheearlierofprofitsdistributiondateandthedeclarationdate,intheprofitandlossofthecurrentperiod.Deferredtaxassetsarerecognizedbasedonthedeductibletemporarydifferenceandthecorrespondingtaxrate,totheextentthatithasbecomeprobablethatfuturetaxableprofitwillbeavailableforthedeductibletemporarydifference.Ifinthefuturetheactualtaxableincomedoesnotcoincidewiththeamountcurrentlyexpected,thedeferredtaxassetsresultingwillberecognizedorreversedintheperiodwhenactuallyincurred,inprofitorloss.
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III.THECOMPANY'SSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING
ESTIMATES-continued
36.Changesinsignificantaccountingpolicies
(1)InterpretationNo.14ofAccountingStandardsforBusinessEnterprisesOn26January2021,theMinistryofFinancepromulgatedthe"AccountingStandardsforBusinessEnterprisesInterpretationNo.14"(CaiKuai[2021]No.1,hereinafterreferredtoas"InterpretationNo.14").InterpretationNo.14Question1"Ontheaccountingtreatmentofgovernment-privatepartnership(PPP)projectcontractsbytheprivateparty"stipulatesthattheprivatepartyprovidingconstructionservicesorcontractingtootherpartiesshallcomplywiththe"AccountingStandardsforBusinessEnterprisesNo.14——Accountingshallbecarriedoutaccordingtotheprovisionsof"Income".InterpretationNo.14Question2"Accountingtreatmentofchangesinthebasisfordeterminingcontractualcashflowscausedbythereformofthebenchmarkinterestrate"stipulatesthatthereformofthebenchmarkinterestrateleadstochangesinthebasisfordeterminingthecontractualcashflowoffinancialassetsorfinancialliabilitiesandtheresultsofthereformofthebenchmarkinterestrate.Accountingtreatmentofleasechanges.InterpretationNo.14hasnosignificantimpactonthe2021interimfinancialstatementsoftheGroupandtheCompany.
(2)ProvisionsonAccountingTreatmentofRentConcessionsRelatedtotheCOVID-19On26May2021,theMinistryofFinance("MoF")issuedtheCircularonAdjustingtheScopeofApplicationoftheProvisionsonAccountingTreatmentofRentConcessionsRelatedtotheCOVID-19(CaiKuai[2021]DocumentNo.9)(the"Doc.No.9"),adjustingthescopeofapplicationoftheProvisionsonAccountingTreatmentofRentConcessionsRelatedtotheCOVID-19(CaiKuai[2021]DocumentNo.10)(the"Doc.No.10")issuedbyMoFon19June2020.TheDoc.No.9extendedtheapplicationperiodofrentconcessionapplicabletosimplifiedmethodunderDoc.No.10,i.e.adjusting"Rentconcessionisonlyapplicabletoleasepaymentspayablebefore30June2021.Anyincreaseinleasepaymentspayableafter30June2021doesnotaffectthesatisfactionofthecriteria,butdecreaseinleasepaymentspayableafter30June2021doesnotsatisfythecriteria."to"Rentconcessionisonlyapplicabletoleasepaymentspayablebefore30June2022.Anyincreaseinleasepaymentspayableafter30June2022doesnotaffectthesatisfactionofthecriteria,butdecreaseinleasepaymentspayableafter30June2022doesnotsatisfythecriteria.".Theothercriteriaremainunchanged.TheaboveprovisionshavenosignificantimpactontheGroup'sandCompany'sfinancialstatementsfortheperiodended30June2021.
37.ChangesinsignificantaccountingestimatesTheGrouphasnosignificantchangesinaccountingestimatesinthecurrentperiod.
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IV.TAXES
1.Majortaxesandtaxrates
| Taxes | Taxbasis | Taxrate |
| Enterpriseincometax | Taxableincome | 16.5%-34%(Note1) |
| Dividendincometax | 5%,10%,25%(Note2) | |
| Value-addedTax("VAT")(Note3) | Incomefromsaleofgoods(Note4) | 9%,13% |
| Incomefromtransportation,loadingandunloadingbusinessandpartofmodernserviceindustries | 6% | |
| Incomefromsaleofrealestate,propertymanagement,realestatelease,etc. | 5%,6%,9% | |
| Socialcontributiontax(Note5) | Income | 0.65%-7.6% |
| Deedtax | Landuserightandpropertytransferamount | 3%-5% |
| Propertytax | 70%ofcostofpropertyorrentalincome | 1.2%or12% |
| Citymaintenanceandconstructiontax | VATpaid | 1%-7% |
| Educationsurtax | VATpaid | 3% |
Note1:TheGroup'senterpriseincometaxiscalculatedbasedonthecurrenttaxratestipulatedby
localtaxlaws.Amongthem,theCompanyaresubjecttoanenterpriseincometaxrateof25%,thesubsidiariessetupinHongKongaresubjecttoanenterpriseincometaxrateof
16.5%,themajorityofsubsidiariessetupinChinaaresubjecttoanenterpriseincometaxrateof25%andcertainothersaresubjecttothepreferentialtaxrateforsmallandmicroenterprisesof20%,andtheotheroverseassubsidiariesaresubjecttoenterpriseincometaxratesbetween28%and34%.Note2:ForeigninvestorswhoreceivedividendsofprofitsfromChinesesubsidiariesin2008and
thereaftergenerallyshallpaywithholdingincometaxatarateof10%inaccordancewiththerelevantprovisionsofthePRCenterpriseincometax.Forcompaniesincorporatedincertainregions(includingHongKongandSingapore),ifthecompaniesareactualownersholdingmorethan25%interestinthesubsidiariesinChina,theywillenjoyapreferentialtaxrateof5%.TheCompanyobtainsdividendsdistributedbyoverseassubsidiariesandshouldpayenterpriseincometaxatarateof25%inaccordancewithrelevantChinesetaxlaws.TheCompanyobtainstaxableincomeoutsideofChina,andtheamountofincometaxthathasbeenpaidabroadcanbeoffsetwiththecurrenttaxableamount.ThecreditlimitisthetaxableamountcalculatedinaccordancewiththeprovisionsoftheEnterpriseIncomeTaxLaw.Note3:TheVATamountisthebalanceoftheoutputtaxlessthedeductibleinputtax,andthe
outputtaxiscalculatedinaccordancewiththesalesincomeandthecorrespondingtaxratestipulatedintherelevanttaxlawsofChina.
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IV.TAXES-continued
1.Majortaxesandtaxrates-continuedNote4:PursuanttoAnnouncementofCustomsonRelevantPoliciesforDeepeningtheValue-
AddedTaxReformissuedbytheMinistryofFinance,theStateTaxationAdministrationandtheGeneralAdministration(AnnouncementNo.39[2019]oftheMinistryofFinance,theStateTaxationAdministrationandtheGeneralAdministrationofCustoms),from1April2019,thetaxrateof16%and10%applicabletotheVATtaxablesaleorimportofgoodsareadjustedto13%and9%,respectively.Note5:ThesocialcontributiontaxisthetaxpaidbytheoverseassubsidiariesoftheGrouptothe
localgovernment.
2.Taxpreference
SomesubsidiariesoftheGroupinChinaarerecognizedashigh-techenterprisesorencouragedindustrialenterprisesintheregionandaresubjecttoanenterpriseincometaxrateof15%.TheGroup'ssubsidiariesoutsideChinamaybesubjecttoenterpriseincometaxpreferenceinaccordancewithrelevantlocaltaxpolicies.V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS
1.Cashandbankbalances
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Cash | 363,642.53 | 575,797.26 |
| RMB | 51,542.58 | 37,045.02 |
| USD | 150,714.70 | 146,078.94 |
| HKD | 24,454.21 | 24,653.41 |
| BRL | 6,447.44 | 5,997.01 |
| Others | 130,483.60 | 362,022.88 |
| Bankdeposit(Note1) | 9,003,695,587.20 | 11,547,077,133.15 |
| RMB | 6,640,184,246.92 | 7,585,560,643.67 |
| USD | 842,552,750.96 | 817,495,062.65 |
| EUR | 939,406,425.46 | 770,193,517.95 |
| BRL | 418,096,134.27 | 273,701,827.77 |
| HKD | 152,384,041.68 | 2,076,664,153.73 |
| AUD | 424,576.33 | 557,797.36 |
| Others | 10,647,411.58 | 22,904,130.02 |
| Othercashandbankbalances(Note2) | 375,314,367.51 | 370,770,828.30 |
| RMB | 375,270,597.94 | 370,726,535.43 |
| HKD | 43,769.57 | 44,292.87 |
| Total | 9,379,373,597.24 | 11,918,423,758.71 |
| Including:Totalamountoffundsdepositedoverseas | 2,857,588,296.09 | 5,313,591,920.43 |
Note1:Attheendofthecurrentperiod,theGroup'sbankdepositsthatweredepositedoverseas
andrestrictedforcapitalrepatriationtotalednil(atthebeginningofthecurrentperiod:nil).
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
1.Cashandbankbalances-continuedNote2:Thestructureddepositsthatcouldbereadilywithdrawnondemandintheothercashand
bankbalancesoftheGrouptotaledRMB362,980,035.90,therestricteddeposittotaledRMB12,259,378.15,andthebalanceofthemarginmaintenanceaccountwasRMB74,953.46.
2.Held-for-tradingfinancialassets
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Financialassetsmeasuredatfairvaluethroughprofitorloss | 1,000,173,287.80 | 850,165,448.59 |
| Including:Structureddeposits | 1,000,000,000.00 | 850,000,000.00 |
| Equityinvestmentinstruments | 173,287.80 | 165,448.59 |
| Total | 1,000,173,287.80 | 850,165,448.59 |
3.Notesreceivable
(1)Classificationofnotesreceivable
Unit:RMB
| Category | Closingbalance | Openingbalance(Restated) |
| Bankacceptance | 23,664,430.98 | 2,245,000.16 |
| Commercialacceptance | - | 3,146,994.68 |
| Total | 23,664,430.98 | 5,391,994.84 |
| Less:Provisionforcreditlosses(Note) | - | - |
| Carryingamount | 23,664,430.98 | 5,391,994.84 |
Note:TheGroupbelievesthattheacceptorofitsbankacceptanceandcommercialacceptance
havehighcreditratingswithnosignificantcreditrisks;therefore,noprovisionforcreditlossismade.
(2)Asat30June2021,therearenonotesreceivablepledged.
(3)Asat30June2021,theGrouphasnonotesreceivableendorsedordiscountedbut
unmaturedatthebalancesheetdate.
(4)Asat30June2021,therearenonotesreclassifiedtoaccountsreceivableduetothe
drawers'inabilitytosettlethenote.
(5)TheGrouphasnonotesreceivablewrittenofffortheperiodfrom1Januaryto30June
2021.
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
4.Accountsreceivable
(1)Accountsreceivabledisclosedbyaging
Unit:RMB
| Aging | Closingbalance | ||
| Accountsreceivable | Provisionforcreditloss | Proportion(%) | |
| Within1year | 1,833,629,561.08 | 18,474,325.56 | 1.01 |
| Morethan1yearbutnotexceeding2years | 50,613,308.68 | 17,682,820.43 | 34.94 |
| Morethan2yearsbutnotexceeding3years | 5,082,039.70 | 2,840,927.94 | 55.90 |
| Morethan3years | 40,585,676.63 | 37,671,574.10 | 92.82 |
| Total | 1,929,910,586.09 | 76,669,648.03 | |
(2)Disclosureofaccountsreceivablebycategories
Unit:RMB
| Creditrating | Expectedcreditlossrate(%) | Closingbalance | Openingbalance(Restated) | ||||
| Carryingamount | Provisionforcreditloss | Bookvalue | Carryingamount | Provisionforcreditloss | Bookvalue | ||
| A | 0.00-0.10 | 968,715,740.70 | 641,983.99 | 968,073,756.71 | 680,599,675.12 | 658,001.13 | 679,941,673.99 |
| B | 0.10-0.30 | 545,761,792.88 | 1,529,163.25 | 544,232,629.63 | 520,087,318.71 | 639,654.91 | 519,447,663.80 |
| C | 0.30-50.00 | 347,540,479.95 | 24,250,944.08 | 323,289,535.87 | 207,630,761.65 | 23,911,382.65 | 183,719,379.00 |
| D | 50.00-100.00 | 67,892,572.56 | 50,247,556.71 | 17,645,015.85 | 60,465,077.73 | 50,224,377.50 | 10,240,700.23 |
| Total | 1,929,910,586.09 | 76,669,648.03 | 1,853,240,938.06 | 1,468,782,833.21 | 75,433,416.19 | 1,393,349,417.02 | |
(3)Changesinprovisionforcreditlossofaccountsreceivable
Unit:RMB
| Item | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | Total |
| Openingbalance(Restated) | 25,209,038.69 | 50,224,377.50 | 75,433,416.19 |
| Carryingamountofaccountsreceivableat1January2021 | |||
| --Transferredtocredit-impairedaccountsreceivables | - | - | - |
| --Reversedtonotcredit-impairedaccountsreceivable | - | - | - |
| Provisionfortheperiod | 3,416,820.67 | 232,035.00 | 3,648,855.67 |
| Reversalfortheperiod | -2,378,003.37 | -94,712.96 | -2,472,716.33 |
| Impactofforeigncurrencystatementtranslation | 174,235.33 | -114,142.83 | 60,092.50 |
| Closingbalance | 26,422,091.32 | 50,247,556.71 | 76,669,648.03 |
Therearenoaccountsreceivablewrittenoffduringthisperiod.
(4)Thetopfivebalancesofaccountreceivablesclassifiedbydebtor
Unit:RMB
| Nameofentity | Closingbalance | Aging | Proportionoftheamounttothetotalaccountsreceivable(%) | Closingbalanceofprovisionforcreditloss |
| ClientA | 177,065,984.10 | Within1year | 9.18 | 177,065.98 |
| ClientB | 84,452,452.50 | Within1year,morethan1yearbutnotexceeding2years | 4.38 | 69,700.20 |
| ClientC | 78,575,366.80 | Within1year,morethan1yearbutnotexceeding2years | 4.07 | 32,399.01 |
| ClientD | 64,839,808.72 | Within1year,morethan1yearbutnotexceeding2years | 3.36 | 10,996,831.56 |
| ClientE | 55,855,729.72 | Within1year,morethan1yearbutnotexceeding2years | 2.89 | 94,092.90 |
| Total | 460,789,341.84 | 23.88 | 11,370,089.65 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
5.Accountsreceivablefinancing
(1)Accountsreceivablefinancingclassification
Unit:RMB
| Items | Closingbalance | Openingbalance |
| Bankacceptancemeasuredatfairvalue | 272,889,319.83 | 217,449,966.41 |
(2)On30June2021,theGrouphasnopledgedaccountreceivablesfinancing.
(3)Asat30June2021,accountreceivablesfinancingendorsedordiscountedwhicharenot
yetdueatthebalancesheetdateareasfollows
Unit:RMB
| Items | Closingbalance | Openingbalance | ||
| Derecognized | Recognized | Derecognized | Recognized | |
| Bankacceptancemeasuredatfairvalue | 35,921,012.26 | - | 129,866,604.18 | - |
6.Prepayments
(1)Aginganalysisofprepayment
Unit:RMB
| Aging | Closingbalance | Openingbalance(Restated) | ||
| Amount | Proportion(%) | Amount | Proportion(%) | |
| Within1year | 86,006,306.73 | 99.53 | 50,438,796.50 | 98.48 |
| Morethan1yearbutnotexceeding2years | 313,849.85 | 0.36 | 585,435.07 | 1.14 |
| Morethan2yearsbutnotexceeding3years | 8,020.97 | 0.01 | - | - |
| Morethan3years | 86,207.76 | 0.10 | 193,638.86 | 0.38 |
| Total | 86,414,385.31 | 100.00 | 51,217,870.43 | 100.00 |
(2)Asat30June2021,theGrouphasnosignificantprepaymentsagedmorethanoneyear.
(3)Thetopfivebalancesofprepaymentsclassifiedbyentities
Unit:RMB
| Nameofentity | RelationshipwiththeCompany | Closingbalance | Proportionoftheclosingbalancetothetotalprepayments(%) |
| SahamAssuranceTogoS.A. | Non-relatedparty | 6,584,963.34 | 7.61 |
| FairfaxBrasilSegurosCorporativosS.A. | Non-relatedparty | 4,555,092.72 | 5.27 |
| JianshiConstructionCo.,Ltd. | Non-relatedparty | 3,142,057.55 | 3.64 |
| ShenyangRuilidaTechnologyCo.,Ltd. | Non-relatedparty | 3,011,882.88 | 3.49 |
| CCCCFirstHarbourConsultantsCO.,LTD | Non-relatedparty | 2,852,256.00 | 3.30 |
| Total | 20,146,252.49 | 23.31 |
7.Otherreceivables
7.1Summaryofotherreceivables
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Dividendreceivable | 1,257,817,553.23 | 258,137,208.69 |
| Otherreceivables | 3,322,888,529.46 | 3,303,155,105.29 |
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| Total | 4,580,706,082.69 | 3,561,292,313.98 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.2Dividendreceivable
(1)Presentationofdividendreceivable
Unit:RMB
| Nameofinvestee | Closingbalance | Openingbalance(Restated) |
| ShanghaiInternationalPort(Group)Co.,Ltd. | 756,630,823.35 | - |
| ChinaNanshanDevelopment(Group)Incorporation("NanshanGroup") | 316,246,500.00 | 210,831,000.00 |
| LiaoningPortCo.,Ltd. | 74,242,730.44 | - |
| QingdaoPortInternationalCo.,Ltd. | 39,116,713.02 | - |
| Tin-CanIslandContainerTerminalLtd | 22,996,441.34 | 33,289,037.77 |
| Others | 49,843,421.71 | 14,275,566.52 |
| Total | 1,259,076,629.86 | 258,395,604.29 |
| Less:Provisionforcreditloss | 1,259,076.63 | 258,395.60 |
| Bookvalue | 1,257,817,553.23 | 258,137,208.69 |
(2)Significantdividendreceivableagedmorethan1year
Unit:RMB
| Nameofinvestee | Closingbalance | Aging | Whyunrecovered | Closingbalanceofprovisionforcreditlosses |
| NanshanGroup | 140,554,000.00 | Morethan1yearbutnotexceeding2years | Relevantproceduresarebeinghandledanditisexpectedtoberecoveredbytheendof2021 | 140,554.00 |
| Total | 140,554,000.00 | 140,554.00 |
(3)Changesinprovisionforcreditlossofdividendreceivable
Unit:RMB
| Item | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| Openingbalance | 258,395.60 | - | - | 258,395.60 |
| Carryingamountofdividendreceivablesat1January2021 | ||||
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | - | - | - | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionfortheperiod | 1,000,681.03 | - | - | 1,000,681.03 |
| Reversalfortheperiod | - | - | - | - |
| Transfer-outonderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | - | - |
| Closingbalance | 1,259,076.63 | - | - | 1,259,076.63 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.3Otherreceivables
(1)Otherreceivablesdisclosedbyaging
Unit:RMB
| Aging | Closingbalance | ||
| Otherreceivables | Provisionforcreditloss | Proportion(%) | |
| Within1year | 2,572,619,131.98 | 57,240.17 | - |
| Morethan1yearbutnotexceeding2years | 431,767,085.80 | 71,268.54 | 0.02 |
| Morethan2yearsbutnotexceeding3years | 502,052,317.18 | 295,399,464.85 | 58.84 |
| Morethan3years | 321,708,078.61 | 209,730,110.55 | 65.19 |
| Total | 3,828,146,613.57 | 505,258,084.11 | |
(2)Disclosureofotherreceivablesbynature
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Landcompensation(Note1) | 2,742,032,000.00 | 2,742,032,000.00 |
| Operationcompensation(Note2) | 662,024,082.30 | 687,057,815.03 |
| Temporarypayments | 196,310,928.35 | 159,559,495.82 |
| Compensationforprofitorlossontransition | 6,654,751.43 | 38,312,376.24 |
| Deposits | 21,836,368.72 | 24,819,304.63 |
| Others | 199,288,482.77 | 173,665,086.98 |
| Total | 3,828,146,613.57 | 3,825,446,078.70 |
| Less:Provisionforcreditloss | 505,258,084.11 | 522,290,973.41 |
| Bookvalue | 3,322,888,529.46 | 3,303,155,105.29 |
Note1:On5November2019,ShantouChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferred
toas"ShantouPort")enteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately370.96mulocatedinZhuchideepwaterportonthesouthofZhongshanEastRoadofShantouwillbereturnedtoShantouLandReserveCenterbyShantouPort,amountingtoRMB1,558,032,000.00.Theabovementionedlandandattachedbuildingshavebeentransferredbefore31December2020.Asof30June2021,thelandcompensationtotalingtoRMB1,208,032,000.00hasnotbeenrecoveredyet.On21August2020,ShantouPortenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouHaojiangDistrictLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately152.34mulocatedinQueshiWutian,HaojiangDistrict,ShantouCitywillbereturnedtoShantouHaojiangDistrictLandReserveCenterbyShantouPort,amountingtoRMB250,000,000.00.Theabovementionedlandandattachedbuildingshavebeentransferredbefore31December2020.Asof30June2021,thelandcompensationofRMB200,000,000.00hasnotbeenrecoveredyet.
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.3Otherreceivables-continued
(2)Disclosureofotherreceivablesbynature-continuedNote1:-continued
On22December2020,ShantouPortenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately648.78mulocatedinZhuchideepwaterportofShantouwillbereturnedtoShantouLandReserveCenterbyShantouPort,amountingtoRMB2,724,876,000.00.320muoflandandattachedbuildingshavebeentransferredbefore31December2020.Asof30June2021,thelandcompensationofRMB1,334,000,000.00hasnotbeenrecoveredyet.Theremaining328.78muoflandandattachedbuildingshavenotbeentransferred,whichwillbepresentedasheld-for-saleassetsbytheGroup.Note2:ItreferstotheoperatingcompensationthatthesubsidiaryoftheCompanyshallcollect
fromtheholdingcompanyofitsminorityshareholdersaccordingtotheagreement,amountingtoRMB662,024,082.30.Theaboveamounthasbeenoverdue.On30June2021,thecorrespondingbalanceofimpairmentoncreditlossamountedtoRMB468,709,082.30.
(3)ProvisionforcreditlossonotherreceivablesAspartoftheGroup'screditriskmanagement,theGroupconductsinternalcreditratingsforitscustomersanddeterminestheexpectedlossrateforotherreceivablesforeachrating.Suchexpectedaveragelossratesarebasedonactualhistoricalimpairmentswhiletakingaccountofthecurrentandfutureeconomicconditions.Asat30June2021,thecreditriskandexpectedcreditlossofotherreceivablesofeachcategoryofcustomersarepresentedasbelow:
Unit:RMB
| Creditrating | Expectedcreditlossrate(%) | Closingbalance | Openingbalance(Restated) | ||||||
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | Total | Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | Total | ||
| A | 0.00-0.10 | 3,129,879,304.06 | - | - | 3,129,879,304.06 | 3,102,785,902.96 | - | - | 3,102,785,902.96 |
| B | 0.10-0.30 | - | - | - | - | - | - | - | - |
| C | 0.30-50.00 | - | - | - | - | - | - | - | - |
| D | 50.00-100.00 | - | - | 698,267,309.51 | 698,267,309.51 | - | - | 722,660,175.74 | 722,660,175.74 |
| Accountbalance | 3,129,879,304.06 | - | 698,267,309.51 | 3,828,146,613.57 | 3,102,785,902.96 | - | 722,660,175.74 | 3,825,446,078.70 | |
| Provisionforcreditloss | 332,459.65 | - | 504,925,624.46 | 505,258,084.11 | 308,222.19 | - | 521,982,751.22 | 522,290,973.41 | |
| Bookvalue | 3,129,546,844.41 | - | 193,341,685.05 | 3,322,888,529.46 | 3,102,477,680.77 | - | 200,677,424.52 | 3,303,155,105.29 | |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
7.Otherreceivables-continued
7.3Otherreceivables-continued
(4)Changesinprovisionforcreditlossofotherreceivables
Unit:RMB
| Item | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| Openingbalance(Restated) | 308,222.19 | - | 521,982,751.22 | 522,290,973.41 |
| Carryingamountofotherreceivablesat1January2021 | ||||
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | -109,558.16 | - | 109,558.16 | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionfortheperiod | 146,421.25 | - | 808,708.09 | 955,129.34 |
| Reversalfortheperiod | -12,625.63 | - | -218,736.67 | -231,362.30 |
| Impactofforeigncurrencystatementtranslation | - | - | -17,756,656.34 | -17,756,656.34 |
| Closingbalance | 332,459.65 | - | 504,925,624.46 | 505,258,084.11 |
(5)TheGrouphasnootherreceivableswrittenofffortheperiodfrom1Januaryto30June
2021.
(6)Attheendoftheyear,thetopfivebalancesofotherreceivablesclassifiedbydebtorareas
below:
Unit:RMB
| Nameofentity | Nature | Closingbalance | Aging | Proportionoftheamounttotheotherreceivables(%) | Provisionforcreditlossattheendoftheperiod |
| EntityA | Landcompensation | 2,542,032,000.00 | Within1year;Morethan1yearbutnotexceeding2years | 66.40 | 39,052.09 |
| EntityB | Operationcompensation | 662,024,082.30 | Morethan2yearsbutnotexceeding3years;Morethan3years | 17.30 | 468,709,082.30 |
| EntityC | Landcompensation | 200,000,000.00 | Within1year | 5.22 | 3,072.51 |
| EntityD | Temporarypayments | 45,174,070.15 | Within1year;Morethan3years | 1.18 | 4,355.19 |
| EntityE | Temporarypayments | 33,692,528.00 | Morethan3years | 0.88 | 3,369.25 |
| Total | 3,482,922,680.45 | 90.98 | 468,758,931.34 |
8.Inventories
(1)Categoriesofinventories
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) | ||||
| Carryingamount | Provisionfordeclineinvalueofinventories | Bookvalue | Carryingamount | Provisionfordeclineinvalueofinventories | Bookvalue | |
| Rawmaterials | 168,953,489.68 | 884,061.15 | 168,069,428.53 | 168,411,323.61 | 884,061.15 | 167,527,262.46 |
| Goodsonhand | 28,930,830.87 | - | 28,930,830.87 | 34,780,194.84 | - | 34,780,194.84 |
| Revolvingmaterials | - | - | - | - | - | - |
| Others | 13,008,687.75 | - | 13,008,687.75 | 12,516,519.00 | - | 12,516,519.00 |
| Total | 210,893,008.30 | 884,061.15 | 210,008,947.15 | 215,708,037.45 | 884,061.15 | 214,823,976.30 |
-71-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
8.Inventories-continued
(2)Provisionfordeclineinvalueofinventories
Unit:RMB
| Item | Openingbalance | Provision | Decrease | Closingbalance | |
| Reversal | Write-off | ||||
| Rawmaterials | 884,061.15 | - | - | - | 884,061.15 |
Note:Asat30June2021,theGrouphasnocapitalizedborrowingcostinthebalanceof
inventories.
9.Assetsheldforsale
| Item | Bookvalueattheendoftheperiod | Fairvalueattheendoftheperiod | Estimateddisposalexpenses | Estimateddisposaltime |
| Long-termassetsheldforsale | 337,442,757.28 | 1,380,876,000.00 | 5,608,306.69 | Therelocationwillbecompletedinthesecondhalfof2021 |
| Less:Provisionforimpairmentofassetsheldforsale | - | - | - | |
| Bookvalue | 337,442,757.28 | - | - |
Note:SeeNote(V)7.3(2)fordetails.
10.Non-currentassetsduewithinoneyear
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Long-termreceivablesduewithinoneyear | 74,876,906.59 | 67,760,233.67 |
| Less:Provisionforcreditloss | 74,876.91 | 67,760.23 |
| Bookvalue | 74,802,029.68 | 67,692,473.44 |
11.Othercurrentassets
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Structuraldeposits | 455,413,041.12 | 102,749,431.10 |
| Including:Principal | 450,000,000.00 | 100,000,000.00 |
| Interestreceivable | 5,413,041.12 | 2,749,431.10 |
| Prepaidtaxes | 69,620,382.35 | 47,556,756.97 |
| Others(Note) | 296,908,759.07 | 283,767,897.09 |
| Total | 821,942,182.54 | 434,074,085.16 |
| Less:Provisionforcreditloss | - | - |
| Bookvalue | 821,942,182.54 | 434,074,085.16 |
Note:RefertotheVATcreditsofdomesticsubsidiaries.
-72-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
12.Long-termreceivables
(1)Detailsoflong-termreceivables
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Accountbalance | Provisionforcreditloss | Bookvalue | Accountbalance | Provisionforcreditloss | Bookvalue | |
| Principalandinterestofreceivablesforcooperation | - | - | - | 286,330,144.62 | 286,330.14 | 286,043,814.48 |
| Advancestoshareholders(Note) | 3,635,346,843.54 | 3,635,346.85 | 3,631,711,496.69 | 3,663,271,923.98 | 3,663,271.92 | 3,659,608,652.06 |
| Financingleasedeposits | 10,000,000.00 | 10,000.00 | 9,990,000.00 | 10,000,000.00 | 10,000.00 | 9,990,000.00 |
| Total | 3,645,346,843.54 | 3,645,346.85 | 3,641,701,496.69 | 3,959,602,068.60 | 3,959,602.06 | 3,955,642,466.54 |
| Less:Long-termreceivablesduewithin1year | 74,876,906.59 | 74,876.91 | 74,802,029.68 | 67,760,233.67 | 67,760.23 | 67,692,473.44 |
| Long-termreceivablesdueover1year | 3,570,469,936.95 | 3,570,469.94 | 3,566,899,467.01 | 3,891,841,834.93 | 3,891,841.83 | 3,887,949,993.10 |
Note:ItreferstotheterminalacquisitionprojectfundsadvancedbytheGrouptoitsassociate
TerminalLinkSAS.Asat31June2021,theprincipalandinteresttotaledRMB2,771,361,793.06.SeeNote(V)13fordetails.
(2)Provisionforcreditlossonlong-termreceivables
Unit:RMB
| Item | Stage1 | Stage2 | Stage3 | Total |
| Expectedcreditlossin12months | Lifetimeexpectedcreditloss(notcredit-impaired) | Lifetimeexpectedcreditloss(credit-impaired) | ||
| Openingbalance | 3,959,602.06 | - | - | 3,959,602.06 |
| Carryingamountoflong-termreceivablesat1January2021 | ||||
| --TransfertoStage2 | - | - | - | - |
| --TransfertoStage3 | - | - | - | - |
| --ReversetoStage2 | - | - | - | - |
| --ReversetoStage1 | - | - | - | - |
| Provisionfortheperiod | 7,116.69 | - | - | 7,116.69 |
| Reversalfortheperiod | -321,371.90 | - | - | -321,371.90 |
| Transfer-outonderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | - | - |
| Closingbalance | 3,645,346.85 | - | - | 3,645,346.85 |
(3)Asat30June2021,therearenolong-termreceivablesderecognizedduetothetransferof
financialassets.
(4)Therearenoassetsandliabilitiesarisingfromthetransferorcontinuinginvolvementof
long-termreceivablesat30June2021.
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
13.Long-termequityinvestments
Unit:RMB
| Investees | Accountingmethod | Openingbalance(Restated) | Changesfortheyear | Closingbalance | Closingvalueofprovisionforimpairment | |||||||
| Increase | Investmentprofitorlossunderequitymethod | Reconcilingitemsfromothercomprehensiveincome | Otherequitymovements | Cashdividendsorprofitsannouncedofissuance | Others | Provisionforimpairment | Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies | |||||
| I.Jointventures | ||||||||||||
| Euro-AsiaOceangateS.àr.l. | Equitymethod | 2,533,296,561.96 | - | 35,657,835.28 | - | - | - | - | - | -16,457,622.51 | 2,552,496,774.73 | - |
| PortofNewcastle | Equitymethod | 2,149,048,944.67 | - | 4,976,890.86 | - | - | -14,535,702.56 | - | - | -47,195,626.40 | 2,092,294,506.57 | - |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Equitymethod | 1,507,359,082.53 | - | 30,849,525.86 | - | 2,892,779.72 | - | - | - | - | 1,541,101,388.11 | - |
| YantaiPortGroupLaizhouPortCo.,Ltd. | Equitymethod | 782,832,086.50 | - | 16,309,101.16 | - | - | -24,643,441.33 | - | - | - | 774,497,746.33 | - |
| FujianZhaohangLogisticsManagementPartnership(LimitedPartnership)("ZhanhangLogistics") | Equitymethod | 452,283,105.00 | - | 933,240.00 | - | - | - | - | - | - | 453,216,345.00 | - |
| Others | Equitymethod | 1,441,507,425.18 | - | 6,310,579.77 | - | 46,231.88 | -5,626,285.18 | - | - | 87,526.04 | 1,442,325,477.69 | - |
| Subtotal | Equitymethod | 8,866,327,205.84 | - | 95,037,172.93 | - | 2,939,011.60 | -44,805,429.07 | - | - | -63,565,722.87 | 8,855,932,238.43 | - |
| II.Associates | Equitymethod | |||||||||||
| ShanghaiInternationalPort(Group)Co.,Ltd. | Equitymethod | 25,361,783,181.41 | 2,327,928,232.22 | -2,048,420.87 | -55,795,954.31 | -793,927,959.22 | - | - | 128,559.17 | 26,838,067,638.40 | - | |
| NanshanGroup | Equitymethod | 5,390,946,895.65 | - | 560,718,761.21 | -25,111.72 | -11,872,718.00 | -110,922,285.34 | - | - | - | 5,828,845,541.80 | - |
| TerminalLinkSAS(Note1) | Equitymethod | 6,803,553,044.91 | 2,114,714.77 | 182,473,114.97 | -68,157,830.91 | -2,261,145.24 | -1,393,859,331.74 | - | - | -235,560,046.61 | 5,288,302,520.15 | - |
| LiaoningPortCo.,Ltd. | Equitymethod | 3,455,964,513.62 | - | 91,600,129.01 | -361,292.97 | 430,925,728.64 | -81,444,346.03 | - | - | 4,629,361.40 | 3,901,314,093.67 | 351,616,807.79 |
| ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd. | Equitymethod | 7,176,706,008.55 | - | 108,224,200.00 | - | - | - | - | - | - | 7,284,930,208.55 | - |
| ChinaMerchantsNortheastAsiaDevelopmentInvestmentCo.,Ltd. | Equitymethod | 1,007,786,285.71 | - | 6,331,456.35 | - | - | - | - | - | - | 1,014,117,742.06 | - |
| Others | Equitymethod | 8,179,344,087.21 | 207,300,447.62 | 185,046,350.56 | 14,874,835.21 | 40,666.37 | -136,978,096.10 | - | - | -31,862,041.98 | 8,417,766,248.89 | - |
| Subtotal | 57,376,084,017.06 | 209,415,162.39 | 3,462,322,244.32 | -55,717,821.26 | 361,036,577.46 | -2,517,132,018.43 | - | - | -262,664,168.02 | 58,573,343,993.52 | 351,616,807.79 | |
| Total | 66,242,411,222.90 | 209,415,162.39 | 3,557,359,417.25 | -55,717,821.26 | 363,975,589.06 | -2,561,937,447.50 | - | - | -326,229,890.89 | 67,429,276,231.95 | 351,616,807.79 | |
Note1:Asat25November2019,CMPortCo.,Ltd.(hereinafterreferredtoas"CMPort"),asubsidiaryoftheCompany,enteredintoacomprehensive
MemorandumofAgreementwithTerminalLink,anassociateoftheCompany,andCMACGMS.A.,thecontrollingshareholderofTerminalLink,pursuanttowhichtheCMPortproposestosubscribefortheUS$468millionMandatoryConvertibleBondsissuedbyTerminalLinkSAS,andtogranttheUS$500millionLoantoTerminalLinkSAStofinanceitsproposedacquisitionof10terminals.TheGroupsubscribedthemandatoryconvertiblebonds(equivalenttoRMB2,746,841,398.03)on26March2020,andofferedTerminalLinkSASalong-termloanattheinterestrateof6%tosupportitsproposedacquisitionoftheterminals.Asof30June2021,theCompany'stotalprincipalandinterestduefromTerminalLinkSASisequivalenttoRMB2,771,361,793.06.
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
14.Otherinvestmentsinequityinstruments
(1)Detailsofotherinvestmentsinequityinstruments
Unit:RMB
| Investees | Closingbalance | Openingbalance |
| ChinaOceanShippingAgency(Shenzhen)Co.,Ltd. | 144,424,830.00 | 144,424,830.00 |
| Others | 37,592,227.74 | 37,042,227.74 |
| Total | 182,017,057.74 | 181,467,057.74 |
(2)Detailsofnon-tradingequityinstruments
Unit:RMB
| Item | Dividendsincomerecognizedfortheyear | Accumulatedgains/losses | Amountstransferredtoretainedearningsfromothercomprehensiveincome | WhydesignatedasFVTOIC | Whytransferredtoretainedearningsfromothercomprehensiveincome |
| ChinaOceanShippingAgency(Shenzhen)Co.,Ltd. | - | 130,914,830.00 | - | Theintentionofholdingisneitherforsalenorprofitsinshort-term | N/A |
| Others | 460,000.00 | 9,749,796.00 | - | Theintentionofholdingisneitherforsalenorprofitsinshort-term | N/A |
| Total | 460,000.00 | 140,664,626.00 | - |
15.Othernon-currentfinancialassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| FinancialassetsatFVTPL | 863,909,085.69 | 910,807,452.56 |
| Including:Investmentsinequityinstruments | 863,909,085.69 | 910,807,452.56 |
| Including:QingdaoPortInternationalCo.,Ltd. | 839,486,772.90 | 886,385,139.77 |
| Others | 24,422,312.79 | 24,422,312.79 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
16.Investmentproperties
(1)Investmentpropertiesmeasuredundercostmethod
Unit:RMB
| Item | Landuserights | Buildings | Total |
| I.Totaloriginalcarryingamount | |||
| 1.Balanceat1January2021 | 105,727,492.82 | 6,278,220,271.05 | 6,383,947,763.87 |
| 2.Increaseinthecurrentperiod | - | 1,301,543.51 | 1,301,543.51 |
| 3.Balanceat30June2021 | 105,727,492.82 | 6,279,521,814.56 | 6,385,249,307.38 |
| II.Accumulateddepreciationandamortization | |||
| 1.Balanceat1January2021 | 33,534,616.24 | 791,657,872.42 | 825,192,488.66 |
| 2.Increaseinthecurrentperiod | 1,141,052.03 | 93,694,376.37 | 94,835,428.40 |
| 3.Balanceat30June2021 | 34,675,668.27 | 885,352,248.79 | 920,027,917.06 |
| III.Impairmentprovision | |||
| 1.Balanceat1January2021 | - | - | - |
| 2.Increaseinthecurrentperiod | - | - | - |
| 3.Decreaseinthecurrentperiod | - | - | - |
| 4.Balanceat30June2021 | - | - | - |
| IV.Bookvalue | |||
| 1.At30June2021 | 71,051,824.55 | 5,394,169,565.77 | 5,465,221,390.32 |
| 2.At1January2021 | 72,192,876.58 | 5,486,562,398.63 | 5,558,755,275.21 |
(2)Investmentpropertieswithoutownershipcertificates
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Buildingsandlanduserights | 18,481,584.41 | 19,256,400.05 |
17.Fixedassets
17.1Summaryoffixedassets
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Fixedassets | 30,663,383,834.76 | 29,478,004,411.21 |
| Disposaloffixedassets | 1,027,777.17 | 1,750,748.00 |
| Total | 30,664,411,611.93 | 29,479,755,159.21 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
17.Fixedassets-continued
17.2Fixedassets
(1)Detailsoffixedassets
Unit:RMB
| Item | Portandterminalfacilities | Buildings | Machineryandequipment,furnitureandfixtureandotherequipment | Motorvehiclesandcargoships | Total |
| I.Totaloriginalcarryingamount | |||||
| 1.Balanceat1January2021(Restated) | 29,858,213,065.80 | 1,847,328,245.18 | 15,259,298,893.86 | 2,133,169,183.60 | 49,098,009,388.44 |
| 2.Increasefortheperiod | 1,119,106,131.48 | 34,529.27 | 922,689,183.47 | 42,212,223.03 | 2,084,042,067.25 |
| (1)Purchase | 7,208,444.44 | 34,529.27 | 46,162,076.39 | 1,603,929.52 | 55,008,979.62 |
| (2)Transferfromconstructioninprogress | 1,111,897,687.04 | - | 876,527,107.08 | 40,608,293.51 | 2,029,033,087.63 |
| 3.Decreasefortheperiod | 52,003,686.97 | - | 128,369,056.74 | 19,861,149.00 | 200,233,892.71 |
| (1)Disposalorretirement | 52,003,686.97 | - | 128,369,056.74 | 19,861,149.00 | 200,233,892.71 |
| 4.Reclassificationadjustment | 15,713,152.86 | -14,125,996.90 | -1,587,155.96 | - | - |
| 5.Effectofchangesinforeignexchange | 62,874,766.83 | -773,479.99 | -18,033,622.16 | -4,577,767.79 | 39,489,896.89 |
| 6.Closingbalance | 31,003,903,430.00 | 1,832,463,297.56 | 16,033,998,242.47 | 2,150,942,489.84 | 51,021,307,459.87 |
| II.Accumulateddepreciation | |||||
| 1.Balanceat1January2021(Restated) | 8,832,870,876.12 | 468,211,667.37 | 9,319,665,495.98 | 941,729,519.54 | 19,562,477,559.01 |
| 2.Increasefortheperiod | 452,410,453.01 | 38,568,823.81 | 372,794,122.43 | 50,527,215.20 | 914,300,614.45 |
| (1)Provision | 452,410,453.01 | 38,568,823.81 | 372,794,122.43 | 50,527,215.20 | 914,300,614.45 |
| 3.Decreasefortheperiod | 44,695,567.65 | - | 117,981,301.56 | 17,139,001.83 | 179,815,871.04 |
| (1)Disposalorretirement | 44,695,567.65 | - | 117,981,301.56 | 17,139,001.83 | 179,815,871.04 |
| 4.Reclassificationadjustment | 7,053,281.89 | -6,877,372.10 | -175,909.79 | - | - |
| 5.Effectofchangesinforeignexchange | 8,041,299.17 | -273,181.04 | -3,197,969.19 | -1,136,244.47 | 3,433,904.47 |
| 6.Closingbalance | 9,255,680,342.54 | 499,629,938.04 | 9,571,104,437.87 | 973,981,488.44 | 20,300,396,206.89 |
| III.Impairmentprovision | |||||
| 1.Balanceat1January2021 | 57,419,468.96 | 63,906.47 | 44,042.79 | - | 57,527,418.22 |
| 2.Increasefortheperiod | - | - | - | - | - |
| 3.Decreasefortheperiod | - | - | - | - | - |
| 4.Closingbalance | 57,419,468.96 | 63,906.47 | 44,042.79 | - | 57,527,418.22 |
| IV.Bookvalue | |||||
| 1.Closingbookvalue | 21,690,803,618.50 | 1,332,769,453.05 | 6,462,849,761.81 | 1,176,961,001.40 | 30,663,383,834.76 |
| 2.Bookvalueat1January2021(Restated) | 20,967,922,720.72 | 1,379,052,671.34 | 5,939,589,355.09 | 1,191,439,664.06 | 29,478,004,411.21 |
(2)TheGrouphasnofixedassetsthataretemporarilyidleasat30June2021.
(3)Fixedassetsleasedoutunderoperatingleases
Unit:RMB
| Item | Closingcarryingamount | Openingcarryingamount |
| Buildings | 227,514,640.19 | 291,567,507.17 |
| Portandterminalfacilities | 20,157,074.22 | 79,578,478.13 |
| Machineryandequipment,furnitureandfixtureandotherequipment | 6,448,730.20 | 8,646,797.33 |
| Commercialandresidentialhousing | 1,478,120.99 | 4,757,652.18 |
| Total | 255,598,565.60 | 384,550,434.81 |
(4)Fixedassetswithoutownershipcertificates
Unit:RMB
| Item | Closingcarryingamount | Openingcarryingamount |
| Buildings,portandterminalfacilities | 1,704,969,754.34 | 1,751,680,587.08 |
-77-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
17.Fixedassets-continued
17.2Fixedassets-continued
(5)Otherissues
Unit:RMB
| Item | Closingbalance | Remark |
| Costoffixedassetsfullydepreciatedbutstillinuseasat30June2021 | 4,005,652,647.56 | |
| Costoffixedassetstemporarilyidleasat30June2021 | - | |
| Fixedassetsdisposedandretiredfortheperiod: | ||
| Costoffixedassetsdisposedandretired | 200,233,892.71 | |
| Netvalueoffixedassetsdisposedandretired | 20,418,021.67 | |
| Profitorlossondisposalorretirementoffixedassets | 7,938,502.51 |
17.3Disposaloffixedassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Machineryandequipment,furnitureandfixtureandotherequipment | 891,665.65 | 1,216,187.48 |
| Motorvehiclesandcargoships | 111,866.95 | 17,000.05 |
| Portandterminalfacilities | 24,244.57 | 517,560.47 |
| Total | 1,027,777.17 | 1,750,748.00 |
18.Constructioninprogress
18.1Summaryofconstructioninprogress
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Constructioninprogress | 4,062,944,531.95 | 5,366,181,331.72 |
| Materialsforconstructionoffixedassets | 19,865,759.78 | 15,249,274.46 |
| Total | 4,082,810,291.73 | 5,381,430,606.18 |
18.2Constructioninprogress
(1)Detailsofconstructioninprogress
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionforimpairment | Bookvalue | Carryingamount | Provisionforimpairment | Bookvalue | |
| Portandterminalfacilities | 3,408,458,381.00 | - | 3,408,458,381.00 | 4,662,213,617.98 | - | 4,662,213,617.98 |
| Berthsandyards | 253,837,731.30 | - | 253,837,731.30 | 336,353,712.35 | - | 336,353,712.35 |
| Infrastructure | 202,849,501.52 | - | 202,849,501.52 | 197,699,601.64 | - | 197,699,601.64 |
| Shipunderconstruction | 35,875,862.57 | - | 35,875,862.57 | 58,674,526.32 | - | 58,674,526.32 |
| Others | 161,923,055.56 | - | 161,923,055.56 | 111,239,873.43 | - | 111,239,873.43 |
| Total | 4,062,944,531.95 | - | 4,062,944,531.95 | 5,366,181,331.72 | - | 5,366,181,331.72 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
18.Constructioninprogress-continued
18.2Constructioninprogress-continued
(2)Thetoptenbalancesofconstructioninprogress
Unit:RMB
| Item | Budgetamount | Openingbalance | Increasefortheperiod | Transfertofixedassets | Otherdecreasesfortheperiod | Effectofchangesinforeignexchange | Closingbalance | Proportionofaccumulatedconstructioninvestmentinbudget(%) | Constructionprogress(%) | Amountofaccumulatedcapitalizedinterest | Including:capitalizedinterestfortheperiod | Interestcapitalizationrateforthecurrentperiod(%) | Capitalsource |
| ReconstructionprojectofBerth1#-4#,HaixingWharf | 2,315,216,765.16 | 1,544,226,816.60 | 475,615,870.23 | 1,800,807,797.76 | 3,040,699.54 | - | 215,994,189.53 | 87.11 | 87.11 | 66,037,883.84 | 25,219,359.80 | 3.87 | Self-fundingandloan |
| Reconstructionprojectofcontainer,oilterminalandtankarea,HIPG | 2,622,414,278.20 | 986,965,991.96 | 1,671,680.20 | - | - | -6,425,952.26 | 982,211,719.90 | 56.19 | 56.19 | 798,733.97 | 264,284.00 | 2.35 | Self-fundingandloan |
| ProjectofGrainDispatchWarehouseatBerth2#,3#PhaseIII,MachongPort | 620,000,000.00 | 487,050,717.25 | 20,596,884.33 | - | - | - | 507,647,601.58 | 81.88 | 81.88 | 5,821,698.43 | 3,268,813.97 | 4.19 | Self-fundingandloan |
| Xiashanportgeneralwharfproject,ZhanjiangPort | 737,792,300.00 | 464,639,005.10 | 13,731,990.53 | - | - | - | 478,370,995.63 | 64.84 | 64.84 | 21,301,444.40 | 7,282,727.04 | 4.41 | Self-fundingandloan |
| Donghaidaoportwharfprojectforbulkgrains,ZhanjiangPort | 905,348,400.00 | 366,583,393.31 | 6,108,117.16 | - | - | - | 372,691,510.47 | 41.17 | 41.17 | 37,593,000.95 | 6,108,117.16 | 4.41 | Self-fundingandloan |
| Petrifactionoldtankareareconstruction,PhaseI,ZhanjiangPort | 218,378,500.00 | 182,469,597.24 | 275,922.32 | - | - | - | 182,745,519.56 | 83.68 | 83.68 | 5,024,262.73 | - | - | Self-fundingandloan |
| BaomanPortcontainerwharfextensionproject,PhaseI,ZhanjiangPort | 2,342,775,800.00 | 156,012,479.92 | 1,458,658.08 | - | - | - | 157,471,138.00 | 6.72 | 6.72 | 964,740.46 | - | - | Self-fundingandloan |
| Baomanstuffinganddestuffingservicearea,PhaseIProject,ZhanjiangPort | 606,521,505.83 | 137,075,214.56 | - | - | - | - | 137,075,214.56 | 22.60 | 22.60 | 16,689,500.56 | - | - | Self-fundingandloan |
| Guangaostartingproject,ShantouPort | 120,120,000.00 | 99,337,616.67 | 700,420.39 | 7,766,623.83 | - | - | 92,271,413.23 | 83.28 | 83.28 | - | - | - | Self-funding |
| ReconstructionprojectofBulkcargoterminalYard16#,ZhanjiangPort | 190,000,000.00 | 68,846,809.70 | 792,954.16 | - | - | - | 69,639,763.86 | 36.65 | 36.65 | 1,091,753.38 | 792,954.16 | 4.41 | Self-fundingandloan |
| Total | 10,678,567,549.19 | 4,493,207,642.31 | 520,952,497.40 | 1,808,574,421.59 | 3,040,699.54 | -6,425,952.26 | 3,196,119,066.32 | 155,323,018.72 | 42,936,256.13 |
-79-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
18.Constructioninprogress-continued
18.3Materialsforconstructionoffixedassets
Unit:RMB
| Item | Closingbalance | Openingbalance | ||||
| Carryingamount | Provisionforimpairment | Bookvalue | Carryingamount | Provisionforimpairment | Bookvalue | |
| Materialsforconstructionoffixedassets | 19,865,759.78 | - | 19,865,759.78 | 15,249,274.46 | - | 15,249,274.46 |
19.Right-of-useassets
(1)Detailsofright-of-useassets
Unit:RMB
| Item | Portandterminalfacilities | Buildings | Machineryandequipment,furnitureandfixtureandotherequipment | Motorvehiclesandcargoships | Others | Total |
| I.Cost | ||||||
| 1.Balanceat1January2021(Restated) | 6,772,369,651.12 | 161,394,715.13 | 466,008,746.03 | 7,620,740.24 | 2,662,142,323.86 | 10,069,536,176.38 |
| 2.Increasefortheperiod | 1,011,596.29 | 15,605,749.60 | 2,498,995.66 | - | 496,541.00 | 19,612,882.55 |
| (1)Purchase | 1,011,596.29 | 15,605,749.60 | 2,498,995.66 | - | 496,541.00 | 19,612,882.55 |
| 3.Decreasefortheperiod | - | 790,335.73 | 1,112,176.23 | - | 5,875,368.95 | 7,777,880.91 |
| (1)Terminationoflease | - | 790,335.73 | 1,112,176.23 | - | 5,875,368.95 | 7,777,880.91 |
| 4.Effectofchangesinforeignexchange | -35,642,868.79 | -988,717.80 | 209,513.70 | - | -17,183,063.80 | -53,605,136.69 |
| 5.Balanceat30June2021 | 6,737,738,378.62 | 175,221,411.20 | 467,605,079.16 | 7,620,740.24 | 2,639,580,432.11 | 10,027,766,041.33 |
| II.Accumulateddepreciation | ||||||
| 1.Balanceat1January2021(Restated) | 588,760,107.94 | 30,621,557.69 | 109,303,923.22 | 3,743,305.60 | 249,365,468.99 | 981,794,363.44 |
| 2.Increasefortheperiod | 118,847,081.95 | 9,919,043.59 | 16,141,188.11 | 802,075.20 | 20,818,094.41 | 166,527,483.26 |
| (1)Provision | 118,847,081.95 | 9,919,043.59 | 16,141,188.11 | 802,075.20 | 20,818,094.41 | 166,527,483.26 |
| 3.Decreasefortheperiod | - | 782,821.60 | 1,112,176.23 | - | 5,875,368.95 | 7,770,366.78 |
| (1)Terminationoflease | - | 782,821.60 | 1,112,176.23 | - | 5,875,368.95 | 7,770,366.78 |
| 4Effectofchangesinforeignexchange | -1,783,727.14 | -118,239.26 | 192,602.23 | - | -1,472,753.85 | -3,182,118.02 |
| 5.Closingbalance | 705,823,462.75 | 39,639,540.42 | 124,525,537.33 | 4,545,380.80 | 262,835,440.60 | 1,137,369,361.90 |
| III.Impairmentprovision | ||||||
| 1.Balanceat1January2021 | - | - | - | - | - | - |
| 2.Increasefortheperiod | - | - | - | - | - | - |
| 3.Decreasefortheperiod | - | - | - | - | - | - |
| 4.Balanceat30June2021 | - | - | - | - | - | - |
| IV.Bookvalue | ||||||
| 1.Bookvalueat30June2021 | 6,031,914,915.87 | 135,581,870.78 | 343,079,541.83 | 3,075,359.44 | 2,376,744,991.51 | 8,890,396,679.43 |
| 2.Bookvalueat1January2021(Restated) | 6,183,609,543.18 | 130,773,157.44 | 356,704,822.81 | 3,877,434.64 | 2,412,776,854.87 | 9,087,741,812.94 |
-80-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
19.Right-of-useassets-continued
(2)Amountrecognizedinprofitorloss
Unit:RMB
| Category | Amountincurredinthecurrentperiod |
| Depreciationexpensesofright-of-useassets(Note1) | 166,527,483.26 |
| Interestexpensesonleaseliabilities(Note2) | 41,716,504.99 |
| Expensesforshort-termleases | 26,645,495.07 |
| Expensesforleasesoflowvalueassets | 380,593.33 |
| Variableleasepaymentsnotincludedinthemeasurementofleaseliabilities(Note3) | - |
| Revenuefromsubleaseofright-of-useassets | 9,959,795.19 |
Note1:Nodepreciationexpensesofright-of-useassetsarecapitalizedintheperiodfrom1
Januaryto30June2021.Note2:Nointerestexpensesofleaseliabilitiesarecapitalizedintheperiodfrom1Januaryto30
June2021.Note3:Novariableleasepaymentswereincludedinthemeasurementofleaseliabilitiesinthe
periodfrom1Januaryto30June2021.
(3)Thetotalcashoutflowsinrelationtoleasesfortheperiodfrom1Januaryto30June2021
amountingtoRMB163,769,387.34.
(4)LeaseassetsoftheGroupwiththeleasetermasfollows:
| Category | Leaseterm |
| Portandterminalfacilities | 1-99years |
| Buildings | 1-5years |
| Machineryandequipment,furnitureandfixtureandotherequipment | 1-6years |
| Motorvehiclesandcargoships | 5years |
| Others | 1-35years |
(5)Asat30June2021,theGroup'sportandterminalfacilitiesandmachineryandequipment
andvesselsamountingtoRMB1,006,264,593.38aresubjecttoapurchaseoptionatthe
endoftherenewalleaseatapricebelowthemarketprice.
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
20.Intangibleassets
(1)Detailsofintangibleassets
Unit:RMB
| Items | Landuserights(Note1) | Terminalmanagementrights | Others | Total |
| I.Totaloriginalcarryingamount | ||||
| 1.Balanceat1January2021(Restated) | 13,925,403,678.69 | 8,996,212,561.23 | 1,123,714,042.87 | 24,045,330,282.79 |
| 2.Increasefortheyear | 324,710.39 | 17,000,554.83 | 15,059,741.62 | 32,385,006.84 |
| (1)Purchase | - | 17,000,554.83 | 12,019,042.08 | 29,019,596.91 |
| (2)Otherincrease | 324,710.39 | - | 3,040,699.54 | 3,365,409.93 |
| 3.Decreasefortheperiod | 9,813,069.25 | - | 402,167.37 | 10,215,236.62 |
| (1)Disposal | 9,813,069.25 | - | 402,167.37 | 10,215,236.62 |
| 4.Effectofchangesinforeignexchange | 267,799.32 | 8,103,283.29 | 20,371,745.93 | 28,742,828.54 |
| 5.Balanceat30June2021 | 13,916,183,119.15 | 9,021,316,399.35 | 1,158,743,363.05 | 24,096,242,881.55 |
| II.Accumulateddepreciation | ||||
| 1.Balanceat1January2021(Restated) | 3,399,466,693.48 | 1,444,000,560.60 | 429,682,486.61 | 5,273,149,740.69 |
| 2.Increasefortheyear | 161,360,563.78 | 111,569,935.99 | 30,682,691.23 | 303,613,191.00 |
| (1)Provision | 161,360,563.78 | 111,569,935.99 | 30,682,691.23 | 303,613,191.00 |
| 3.Decreasefortheperiod | 1,400,681.08 | - | 11,171.28 | 1,411,852.36 |
| (1)Disposal | 1,400,681.08 | - | 11,171.28 | 1,411,852.36 |
| 4.Effectofchangesinforeignexchange | 214,583.93 | 8,028,047.76 | 4,603,829.41 | 12,846,461.10 |
| 5.Balanceat30June2021 | 3,559,641,160.11 | 1,563,598,544.35 | 464,957,835.97 | 5,588,197,540.43 |
| III.Impairmentprovision | ||||
| 1.Balanceat1January2021 | - | - | - | - |
| 2.Increasefortheperiod | - | - | - | - |
| 3.Decreasefortheperiod | - | - | - | - |
| 4.Balanceat30June2021 | - | - | - | - |
| IV.Bookvalue | ||||
| 1.Bookvalueat30June2021 | 10,356,541,959.04 | 7,457,717,855.00 | 693,785,527.08 | 18,508,045,341.12 |
| 2.Bookvalueat1January2021(Restated) | 10,525,936,985.21 | 7,552,212,000.63 | 694,031,556.26 | 18,772,180,542.10 |
Note1:TheGrouphasobtainedthelanduserightof1,049,946.00squaremetersofberthsand
storageyardsinChiwanPortAreafromNanshanGroup(TheseplotsareincludedwithintheChiwanwatershed,includingthe2.2squarekilometersinvestedbytheshareholderofNanshanGroup—ShenzhenInvestmentHoldingCo.,Ltd.andtheplotsformedfromlandreclamationbyNanshanGroup).ThecostwasRMB1,400,288,984.00,withausefullifeof20to50years.Amongtheplots,thelanduserightwithanareaof270,692.00squaremeters(thecostwasRMB122,623,476.00)wasinvestedbyNanshanGroupuponrestructuringoftheCompany,andtheremaininglanduserightswereobtainedbytheGroupfromNanshanGroupintheformoflong-termlease.Atpresent,sinceNanshanGrouphasnotobtainedthelanduserightofthelandwithintheChiwanwatershed,includingthelandleasedtotheGroupascapitalinvestmentmentionedabove,theGroupisunabletoobtainthepropertyrightcertificateofrelevantlandandbuildingsbuiltontheaforesaidland.
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
20.Intangibleassets-continued
(1)Detailsofintangibleassets-continuedNote1:-continued
On20March2001,18June2003,29September2004and2July2020,NanshanGroupmadeacommitmenttoallthelanduserightsobtainedbytheGroupasofthatdate:
NanshanGroupwillirrevocablyandunconditionallyagreethatsuchlanduserightsareattributedtotheGroup.NanshanGroupguaranteesthattheassigneesofsuchlanduserightsandtheirsuccessorsandtheirassigneesarefullyindemnifiedagainstanyloss,costsandliabilities,claimsorlegalproceedingsarisingoutoforinconnectionwithanyactualorpotentialillegalityandunenforceabilityofthelanduseagreementsandrelateddocumentsexecutedbytheGroupandhereaftertobeexecutedbytheGroup.Accordingly,themanagementoftheCompanyconsidersthattherelevantassetswillnothaveanysignificantimpairmentriskduetothefailuretoobtaintherelevantlandusecertificate,andtheGroupwillnothaveanysignificantcontingentliabilitiesarisingtherefrom.ThemanagementoftheCompanyunderstandsthatNanshanGroupisactivelynegotiatingwithrelevantgovernmentdepartmentsaboutthelandissuesleftoverfromthepast,butitisimpossibletoreliablyestimatethedatewhentheGroupcanobtainthepropertyrightcertificateofrelevantlandandthebuildingsthereon.Asat30June2021,theleaseagreementonthelanduserightof194,293.90squaremetersoftheabovelandwiththecostofRMB137,749,984.16hasexpired.
(2)Landuserightswithoutownershipcertificateson30June2021:
Unit:RMB
| Item | Closingcarryingamount | Openingcarryingamount |
| Landuserights | 1,033,428,561.05 | 1,051,555,795.12 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
21.Developmentexpenditure
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance | |||
| Transfertointangibleassets | Transfertoconstructioninprogress | Transfertofixedassets | Transfertoprofitorlossfortheperiod | ||||
| CTOSupgrading | - | 22,228,037.18 | - | - | - | 22,228,037.18 | - |
| Researchanddevelopmentofquaycraneauxiliaryproductionmonitoring | - | 15,857,995.47 | - | - | - | 15,857,995.47 | - |
| Researchanddevelopmentofintelligentgateentrysystem | - | 6,281,699.80 | - | - | - | 6,281,699.80 | - |
| IntegratedICTsolutionforChinaMerchantssmartcontainerterminal | - | 6,233,232.01 | - | - | - | 6,233,232.01 | - |
| Developmentandapplicationofautomaticcontrolsystemforheavyoil,diesel,gasolineandmethanolprocess | 19,689,935.13 | 6,095,701.06 | - | - | - | - | 25,785,636.19 |
| ResearchanddevelopmentofautomaticboxgraspingandplacingsysteminremoteRTGboxareabasedonvisiontechnology | - | 3,283,319.72 | - | - | - | 3,283,319.72 | - |
| Researchanddevelopmentofcraneremotemonitoringandmanagementsystembasedonfieldbusandreal-timeEthernetcommunicationtechnology | - | 2,597,904.63 | - | - | - | 2,597,904.63 | - |
| CustomizeddevelopmentofblockchaincustomsclearanceprojectinDawanDistrict | - | 2,532,946.93 | - | - | - | 2,532,946.93 | - |
| Researchanddevelopmentofintelligenttallysystembasedonmanytomanyoperationandmultienginerecognitionpattern | - | 2,344,425.68 | - | - | - | 2,344,425.68 | - |
| Crudeoilunittrainloadingequipmentkeytechnologyresearch | 20,656,125.15 | 1,218,823.23 | - | - | - | - | 21,874,948.38 |
| Others | 23,891,674.95 | 48,844,213.07 | - | - | - | 36,984,849.83 | 35,751,038.19 |
| Total | 64,237,735.23 | 117,518,298.78 | - | - | - | 98,344,411.25 | 83,411,622.76 |
22.Goodwill
(1)Originalvalueofgoodwill
Unit:RMB
| Investee | Openingbalance | Increase | Decrease | Effectofchangesinforeignexchange | Closingbalance |
| TCPParticipa??esS.A.("TCP") | 2,562,567,253.74 | - | - | 126,201,691.77 | 2,688,768,945.51 |
| MegaShekouContainerTerminalsLimited | 1,815,509,322.42 | - | - | - | 1,815,509,322.42 |
| CMPort | 993,992,000.00 | - | - | - | 993,992,000.00 |
| ShantouPort | 552,317,736.65 | - | - | - | 552,317,736.65 |
| ZhanjiangPort(Group)Co.,Ltd.("ZhanjiangPort") | 418,345,307.68 | - | - | - | 418,345,307.68 |
| ShenzhenMawanProject | 408,773,001.00 | - | - | - | 408,773,001.00 |
| NingboDaxieChinaMerchantsInternationalTerminalsCompanyLimited("NingboDaxie") | 188,497,194.41 | - | - | - | 188,497,194.41 |
| Others | 288,255,850.88 | - | - | - | 288,255,850.88 |
| Total | 7,228,257,666.78 | - | - | 126,201,691.77 | 7,354,459,358.55 |
(2)Provisionforimpairmentofgoodwill
| Investee | Openingbalance | Increase | Decrease | Effectofchangesinforeignexchange | Closingbalance |
| ShantouPort | 552,317,736.65 | - | - | - | 552,317,736.65 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
23.Long-termprepaidexpenses
Unit:RMB
| Item | Openingbalance(Restated) | Increaseinthecurrentperiod | Amortizationinthecurrentperiod | Otherchanges | Closingbalance |
| Tongguchannelwideningproject(Note1) | 491,846,986.99 | - | 9,317,926.36 | - | 482,529,060.63 |
| Westportareapublicchannelwideningproject(Note2) | 249,214,515.10 | - | 3,167,126.46 | - | 246,047,388.64 |
| RelocationprojectofNanhaiRescueBureau | 39,768,848.30 | - | 553,684.20 | - | 39,215,164.10 |
| Expendituresfortheimprovementofleasedfixedassets | 17,479,223.03 | - | 657,165.60 | - | 16,822,057.43 |
| Others | 76,690,162.49 | 14,313,122.72 | 9,772,988.27 | - | 81,230,296.94 |
| Total | 874,999,735.91 | 14,313,122.72 | 23,468,890.89 | - | 865,843,967.74 |
Note1:ThisrepresenttheGroup'sactualexpensesontheShenzhenWestPortAreaTonggu
Channel210-270MetersWideningProject.AccordingtorelevantresolutionsofShenzhenmunicipalgovernment,theexpensesincurredforthe210-240MetersWideningProjectarebornbytheenterpriseandgovernmenton60%to40%principle,andthe240-270MetersWideningProjectarebornbytheenterpriseandgovernmenton50%to50%principle.TheCompany'ssubsidiaryhasincludedtheexpensesondeepeningthechannelintheitemof"long-termprepaidexpenses",andamortizedsuchexpensesovertheexpectedusefullifeof35or40yearsusingstraight-linemethodsincethecompletionofthetwowideningprojectsin2008and2019,respectively.Note2:ThisrepresenttheGroup'sactualexpensesontheShenzhenWesternPortAreaPublic
ChannelWideningProject,ofwhichthewideningof240-270metersinthefirstsectionwascompletedon1June2019andthewideningof240-270metersinthesecondandthirdsectionswascompletedon5November2020.AccordingtorelevantresolutionsofShenzhenMunicipalGovernment,theexpensesincurredfortheprojectarebornbytheenterpriseandgovernmenton50%to50%principle.TheCompany'ssubsidiaryhasincludedtheexpensesondeepeningthechannelintheitemof"long-termprepaidexpenses",andamortizedsuchexpensesovertheexpectedusefullifeof40yearsusingstraight-linemethodsincethecompletionofeachsectionofthechannelwideningproject.
24.Deferredtaxassetsanddeferredtaxliabilities
(1)Deferredtaxassetswithoutoffsetting
Unit:RMB
| Item | Closingbalance | Openingbalance | ||
| Deductibletemporarydifferences | Deferredtaxassets | Deductibletemporarydifferences | Deferredtaxassets | |
| Unrealizedprofit | 779,690,982.52 | 190,320,514.68 | 782,637,004.71 | 190,978,844.60 |
| Depreciationoffixedassets | 121,310,030.64 | 28,712,287.01 | 121,474,197.24 | 30,363,658.82 |
| Deductiblelosses | 572,737,154.46 | 189,371,992.77 | 375,133,696.59 | 121,834,055.80 |
| Provisionforcreditloss | 44,383,253.14 | 11,664,894.56 | 44,716,751.81 | 11,155,565.87 |
| Provisions | 91,170,414.60 | 24,817,367.97 | 83,415,919.34 | 22,408,962.33 |
| Deferredincome | 36,918,962.56 | 8,713,485.37 | 40,760,480.40 | 9,289,713.04 |
| Amortizationofcomputer | 11,007,022.11 | 2,751,755.53 | 11,007,022.11 | 2,751,755.53 |
| Organizationcosts | 8,436,714.76 | 2,109,178.68 | 8,436,714.76 | 2,109,178.68 |
| Provisionforimpairmentlossesofassets | 4,012,361.15 | 1,003,090.29 | 884,061.15 | 221,015.29 |
| Others | 120,673,655.70 | 30,927,823.04 | 121,790,935.17 | 29,744,326.80 |
| Total | 1,790,340,551.64 | 490,392,389.90 | 1,590,256,783.28 | 420,857,076.76 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
24.Deferredtaxassetsanddeferredtaxliabilities-continued
(2)Deferredtaxliabilitieswithoutoffsetting
Unit:RMB
| Item | Closingbalance | Openingbalance(restated) | ||
| Taxabletemporarydifferences | Deferredtaxliabilities | Taxabletemporarydifferences | Deferredtaxliabilities | |
| Withholdingdividendincometax | 30,831,586,676.38 | 2,098,951,939.51 | 28,188,540,389.01 | 1,925,457,143.90 |
| Fairvalueadjustmentofassetsacquiredbybusinesscombination | 8,370,676,375.40 | 1,895,744,093.18 | 8,566,522,113.13 | 1,925,197,755.69 |
| Changesinfairvalueofothernon-currentfinancialassets | 1,596,786,871.29 | 218,756,520.99 | 1,625,996,080.95 | 225,877,441.96 |
| Depreciationoffixedassets | 850,552,596.25 | 226,633,992.82 | 826,231,081.71 | 217,461,491.73 |
| Changesinfairvalueofotherequityinvestments | 115,753,452.78 | 32,705,069.78 | 140,581,630.00 | 35,145,407.50 |
| Others | 87,476,715.26 | 18,481,632.72 | 87,206,887.29 | 18,413,901.95 |
| Total | 41,852,832,687.36 | 4,491,273,249.00 | 39,435,078,182.09 | 4,347,553,142.73 |
(3)Deferredtaxassetsorliabilitiespresentedatthenetamountafteroffsetting
Unit:RMB
| Item | Offsetamountofdeferredtaxassetsandliabilitiesinthecurrentperiod | Deferredtaxassetsorliabilitiesafteroffsettinginthecurrentperiod | Offsetamountofdeferredtaxassetsandliabilitiesinthepriorperiod | Deferredtaxassetsorliabilitiesafteroffsettinginthepriorperiod(restated) |
| Deferredtaxassets | - | 490,392,389.90 | - | 420,857,076.76 |
| Deferredtaxliabilities | - | 4,491,273,249.00 | - | 4,347,553,142.73 |
(4)Detailsofunrecognizeddeferredtaxassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Deductibletemporarydifferences | 470,699,766.13 | 428,572,235.55 |
| Deductiblelosses | 2,327,577,006.82 | 2,518,481,088.94 |
| Total | 2,798,276,772.95 | 2,947,053,324.49 |
TheGrouprecognizesdeferredincometaxassetstotheextentoffuturetaxableincomethatislikelytobeobtainedtooffsetthedeductibletemporarydifferencesanddeductiblelosses.Fortheexcessofdeductibletemporarydifferencesanddeductiblelossesoverfuturetaxableincome,nodeferredtaxassetsisrecognized.
(5)Deductiblelossesforunrecognizeddeferredtaxassetswillbeexpiredinthefollowing
years:
Unit:RMB
| Year | Closingbalance | Openingbalance |
| 2021 | 69,294,264.10 | 244,394,853.17 |
| 2022 | 601,982,775.30 | 630,217,470.89 |
| 2023 | 787,117,391.41 | 793,817,471.49 |
| 2024 | 506,944,165.04 | 508,391,813.28 |
| 2025 | 338,117,516.17 | 341,622,332.73 |
| 2026 | 23,382,229.62 | - |
| Noexpirationdate | 738,665.18 | 37,147.38 |
| Total | 2,327,577,006.82 | 2,518,481,088.94 |
-86-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
25.Othernon-currentassets
Unit:RMB
| Item | Closingbalance | Openingbalance |
| DachanwanportareaPhaseIIlandreplacementpayment(Note1) | 916,884,222.49 | 916,884,222.49 |
| Advancesofchannelproject(Note2) | 954,021,599.64 | 940,472,488.75 |
| Prepaymentsoflanduserights | 132,410,404.86 | 132,334,704.86 |
| Prepaymentsoffixedassets | 56,867,265.58 | 32,623,333.85 |
| Prepaymentsofterminalfranchise | 30,060,781.71 | 31,113,113.10 |
| Others | 75,654,020.00 | 85,040,820.59 |
| Total | 2,165,898,294.28 | 2,138,468,683.64 |
Note1:PrimarilythelandslocatedinShenzhenQianhaiwanLogisticsParkhasbeenreturnedto
governmentin2019bytheCompany'ssubsidiariesAntongjieTerminalServices(Shenzhen)Co.,Ltd.("ATJ")andAnsujieTerminalServices(Shenzhen)Co.,Ltd.,inwhichQianhaiAdministrationreplaced55%ofthetotallandareaofT102-0166andT102-0167heldbyATJandASJandthecorrespondingshoreline(thelandareaisapproximately531,300squaremeters)tothePhaseIIofDachanBayPortArea.Asof30June2021,thechangeproceduresforthelanduserightofPhaseIIofDachanBayPorthavenotyetbeencompleted.Note2:ThisrepresentthattheCompany'ssubsidiaryZhanjiangPort,uponitsreorganizationinto
ajointstockcompanyin2007,signedtheChannelArrangementAgreementwithState-ownedAssetsSupervisionandAdministrationCommissionofZhanjiang("ZhanjiangSASAC")andChinaMerchantsInternationalTerminal(Zhanjiang)Co.,Ltd.Accordingtotheagreement,thechannelbelongstoZhanjiangSASAC,thereforetheCompanyincludedtheadvancesofchannelprojectthatshouldberepaidbyZhanjiangSASACinothernon-currentassets.
26.Short-termborrowings
(1)Classificationofshort-termborrowings
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Creditloan | 3,411,832,103.87 | 8,976,788,882.26 |
| Guaranteedloan(Note) | 1,506,877,500.00 | 1,506,986,666.67 |
| Total | 4,918,709,603.87 | 10,483,775,548.93 |
Note:TheloanisguaranteedbytheCompany.
(2)At30June2021,theGrouphasnoshort-termborrowingsthatwereoverdue.
27.Notespayable
Unit:RMB
| Category | Closingbalance | Openingbalance |
| Bankacceptance | 3,071,689.38 | 1,600,100.00 |
| Commercialacceptance | 7,384,712.19 | 5,481,672.32 |
| Total | 10,456,401.57 | 7,081,772.32 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
28.Accountspayable
(1)Detailsofaccountspayableareasfollows:
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Servicefee | 248,936,293.62 | 146,212,519.71 |
| Constructionfee | 100,743,629.49 | 117,439,992.70 |
| Materialpurchase | 172,352,075.72 | 144,294,086.08 |
| Rentalfee | 14,113,730.16 | 7,494,989.48 |
| Equipmentpayments | 19,673,881.49 | 20,712,191.08 |
| Others | 189,421,526.24 | 171,818,920.54 |
| Total | 745,241,136.72 | 607,972,699.59 |
(2)Significantaccountspayableagedmorethanoneyear
Unit:RMB
| Item | Amount | Reasonforoutstanding |
| ShenzhenMunicipalBureauofLandandResources | 21,642,795.50 | Thegovernmentplanningprojecthasnotbeencompleted,andthecertificatesofpropertyrightshasnotbeenprocessed. |
29.Receiptsinadvance
(1)Summaryofreceiptsinadvance
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Administrativefeereceiptinadvance | 11,822,984.86 | 10,350,161.96 |
| Rentalfeereceiptinadvance | 1,926,687.04 | 2,715,835.65 |
| Equitytransferpaymentreceiptinadvance | - | 20,492,849.00 |
| Shiptransferpaymentreceiptinadvance | - | 3,450,560.00 |
| Others | 6,843,103.14 | 2,500,721.29 |
| Total | 20,592,775.04 | 39,510,127.90 |
(2)Thereisnosignificantreceiptsinadvanceagedmorethanoneyearat30June2021,
30.Contractliabilities
(1)Summaryofcontractliabilities
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Portchargesreceivedinadvance | 101,290,640.18 | 78,789,466.29 |
| Warehousingfeereceivedinadvance | 10,605,233.98 | 18,460,680.90 |
| Servicefeereceivedinadvance | 51,091,543.88 | 49,782,911.22 |
| Others | 25,334,845.70 | 10,409,051.26 |
| Total | 188,322,263.74 | 157,442,109.67 |
(2)Thereisnosignificantchangeinthebookvalueofcontractliabilitiesinthecurrentperiod.
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
30.Contractliabilities-continued
(3)Thereisnosignificantcontractliabilitiesagedmorethanoneyearattheendoftheperiod.
(4)Qualitativeandquantitativeanalysisofcontractliabilities
ThecontractliabilitymainlyrepresentstheamountreceivedbytheGrouptoprovideportservicestocustomers.Thepaymentiscollectedaccordingtothecontractualpaymenttime.TheGrouprecognizescontractrevenuebasedontheprogressofthecontract.ThecontractliabilitieswillberecognizedasincomeaftertheGroupfulfillsitsperformanceobligations.
(5)Revenuerecognizedinthecurrentperiodandincludedintheopeningcarryingamountof
contractliabilitiesAnamountofRMB128,507,666.65includedinthebookvalueofcontractliabilitiesatthebeginningof2021hasbeenrecognizedasrevenueinthecurrentperiod,includingcontractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromthecontractofreceiptofportchargesinadvanceamountingtoRMB75,071,420.10,contractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromthecontractofreceiptofservicefeeinadvanceamountingtoRMB41,265,052.90,contractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromtheothercontractsinadvanceamountingtoRMB10,770,493.42aswellascontractliabilitiesarisingfromsettledbutunfinishedconstructionresultingfromothercontractsamountingtoRMB1,400,700.23.
31.Employeebenefitspayable
(1)Detailsofemployeebenefitspayableareasfollows
Unit:RMB
| Item | Openingbalance(Restated) | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| 1.Short-termbenefits | 721,298,746.97 | 1,514,037,351.27 | 1,577,859,716.50 | 657,476,381.74 |
| 2.Post-employmentbenefits-definedcontributionplan | 6,217,684.84 | 149,016,929.25 | 147,057,080.31 | 8,177,533.78 |
| 3.Terminationbenefits | - | 3,294,150.13 | 3,294,150.13 | - |
| 4.Otherbenefitsduewithinoneyear | - | 1,887,726.57 | 1,887,726.57 | - |
| 5.Others | -619,306.39 | 3,579,963.29 | 3,009,714.42 | -49,057.52 |
| Total | 726,897,125.42 | 1,671,816,120.51 | 1,733,108,387.93 | 665,604,858.00 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
31.Employeebenefitspayable-continued
(2)Short-termbenefits
Unit:RMB
| Item | Openingbalance(Restated) | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| I.Wagesandsalaries,bonuses,allowancesandsubsidies | 688,968,854.26 | 1,267,933,479.70 | 1,336,413,637.85 | 620,488,696.11 |
| II.Staffwelfare | - | 56,281,483.93 | 53,860,289.30 | 2,421,194.63 |
| III.Socialinsurancecharges | 16,094,126.74 | 75,148,996.45 | 73,410,034.22 | 17,833,088.97 |
| Including:Medicalinsurance | 14,865,150.41 | 61,270,708.40 | 59,733,267.04 | 16,402,591.77 |
| Workinjuryinsurance | 6,258.14 | 6,264,226.00 | 6,220,517.02 | 49,967.12 |
| Maternityinsurance | 30,801.59 | 3,993,677.27 | 3,984,217.91 | 40,260.95 |
| Others | 1,191,916.60 | 3,620,384.78 | 3,472,032.25 | 1,340,269.13 |
| IV.Housingfunds | -490,321.89 | 88,201,016.89 | 87,804,379.22 | -93,684.22 |
| V.Laborunionandemployeeeducationfunds | 16,726,087.86 | 22,391,926.44 | 22,290,928.05 | 16,827,086.25 |
| VI.Othershort-termbenefits | - | 4,080,447.86 | 4,080,447.86 | - |
| Total | 721,298,746.97 | 1,514,037,351.27 | 1,577,859,716.50 | 657,476,381.74 |
(3)Definedcontributionplan
Unit:RMB
| Item | Openingbalance(Restated) | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| I.Basicpension | 6,112,958.64 | 113,229,739.45 | 111,413,897.60 | 7,928,800.49 |
| II.Unemploymentinsurance | 64,028.24 | 1,914,909.47 | 1,908,541.53 | 70,396.18 |
| III.Enterpriseannuityplan | 40,697.96 | 33,872,280.33 | 33,734,641.18 | 178,337.11 |
| Total | 6,217,684.84 | 149,016,929.25 | 147,057,080.31 | 8,177,533.78 |
TheCompanyanditssubsidiariesparticipatesinthesocialsecuritycontributionsandtheunemploymentinsuranceplanestablishedbygovernmentinstitutionsasrequired.Accordingtosuchplans,theGroupcontributesinproportiontothelocalgovernment.Exceptfortheabove-mentioneddepositfees,theGrouphavenooutstandingcontributionstobepaidtothesocialsecuritycontributionsandtheunemploymentinsuranceplan.Thecorrespondingexpensesareincludedinthecurrentprofitandlossorthecostofrelatedassetswhenincurred.
32.Taxespayable
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Enterpriseincometax | 2,202,241,094.68 | 2,320,197,283.53 |
| VAT | 20,811,984.10 | 13,239,447.16 |
| Others | 82,097,323.59 | 36,821,959.30 |
| Total | 2,305,150,402.37 | 2,370,258,689.99 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
33.Otherpayables
(1)Summaryofotherpayables
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Dividendspayable | 1,782,621,471.55 | 70,388,849.49 |
| Otherpayables | 2,083,558,339.76 | 2,410,828,718.91 |
| Total | 3,866,179,811.31 | 2,481,217,568.40 |
(2)Dividendspayable
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Ordinarysharedividends | 1,782,621,471.55 | 70,388,849.49 |
| Including:Externalentities(Publicminorityshareholders/PublicHongKongshares) | 546,522,246.55 | - |
| ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd. | 436,486,486.24 | - |
| ChinaMerchantsUnionDevelopmentCo.,Ltd. | 348,500,295.23 | - |
| ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd. | 140,933,640.00 | - |
| EconomicandTradeGuandeDevelopmentCo.,Ltd. | 75,608,046.12 | - |
| PublicAshares | 60,075,288.32 | - |
| PublicBshares | 47,340,864.36 | - |
| SriLankaPortsAuthority | 34,032,542.04 | 34,255,854.79 |
| ShenzhenInfrastructureInvestmentFundPartnership(LLP) | 24,643,069.16 | - |
| BroadfordGlobalLimited | 21,019,399.04 | - |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd. | 20,000,000.00 | 20,000,000.00 |
| DalianPortContainerDevelopmentCo.,Ltd.("DalianPortContainer") | 12,160,517.31 | 12,160,517.31 |
| SinotransShippingCo.,Ltd. | 10,049,355.79 | - |
| DalianPortCentralizedLogisticsCo.,Ltd.("CentralizedLogistics") | 3,972,477.39 | 3,972,477.39 |
| OrientureHoldingsCompanyLimited | 1,277,244.00 | - |
Asat30June2021,thedividendpayableagedoveroneyearamountstoRMB16,132,994.70,representingthedividendsnotyetreceivedbytheinvestor.
(3)Otherpayables(a)Disclosureofotherpayablesbynature
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Amountpayableforconstructionandqualitywarranty | 846,691,892.68 | 1,044,821,435.49 |
| Deposits | 438,293,530.71 | 360,604,022.08 |
| Customerdiscount | 107,997,934.21 | 119,368,121.44 |
| Accruedexpenses | 187,582,826.10 | 229,820,205.45 |
| Portconstructionandsecurityfee | 55,473,279.54 | 55,085,280.96 |
| Balanceoflanduserightstransfer | 11,295,700.00 | 11,295,700.00 |
| Others | 436,223,176.52 | 589,833,953.49 |
| Total | 2,083,558,339.76 | 2,410,828,718.91 |
-91-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
33.Otherpayables-continued
(3)Otherpayables-continued(b)Significantotherpayableswithagingover1year
Unit:RMB
| Companyname | Closingbalance | Reasonforbeingoutstandingorcarriedforward |
| ShenzhenTransportationCommittee | 65,157,128.97 | Tobepaidafterconfirmationbymutualparties |
| WuxiHDHMCo.,Ltd. | 44,295,045.47 | Tobepaidafterconfirmationbymutualparties |
| ShanghaiZhenhuaHeavyIndustriesCo.,Ltd. | 33,244,983.56 | Tobepaidafterconfirmationbymutualparties |
| ChinaFirstMetallurgicalGroupCo.,Ltd. | 31,590,351.07 | Thecontractedsettlementconditionhasnotbeenreached |
| ShantouTransportationBureau | 31,358,355.47 | Tobepaidafterconfirmationbymutualparties |
| GuangdongJiayeReserveLogisticsCo.,Ltd. | 25,000,000.00 | Thecontractedsettlementconditionhasnotbeenreached |
| CCCC-FHDIEngineeringCo.,Ltd. | 21,878,790.74 | Thecontractedsettlementconditionhasnotbeenreached |
| QingdaoMaritimeBureau | 20,713,982.12 | Tobepaidafterconfirmationbymutualparties |
| ZhanjiangTransportationBureau | 19,643,770.17 | Tobepaidafterconfirmationbymutualparties |
| ShantouFinanceBureau | 10,000,000.00 | Tobepaidafterconfirmationbymutualparties |
| HarmanTechnology(Shenzhen)Co.,Ltd. | 5,917,392.48 | Thecontractedsettlementconditionhasnotbeenreached |
| CCCCFourthHarborEngineeringCo.,Ltd. | 5,711,128.84 | Thecontractedsettlementconditionhasnotbeenreached |
| Total | 314,510,928.89 |
34.Non-currentliabilitiesduewithinoneyear
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Long-termloansduewithinoneyear | 1,411,312,342.09 | 2,074,906,728.26 |
| Including:Creditloan | 476,229,413.83 | 749,046,479.86 |
| Guaranteedloan | 315,299,410.01 | 739,805,701.02 |
| Mortgageloan | 619,783,518.25 | 586,054,547.38 |
| Bondspayableduewithinoneyear | 6,836,936,147.15 | 1,042,773,072.37 |
| Long-termpayableduewithinoneyear | 69,078,497.48 | 3,562,994.44 |
| Long-termemployeebenefitspayableduewithinoneyear | 36,811,951.00 | 36,811,951.00 |
| Leaseliabilitiesduewithinoneyear | 299,138,901.13 | 322,950,258.37 |
| Othernon-currentliabilitiesduewithinoneyear | 90,413,566.88 | 83,582,696.63 |
| Total | 8,743,691,405.73 | 3,564,587,701.07 |
35.Othercurrentliabilities
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Short-termbondspayable | 2,009,274,534.10 | 2,215,478,001.40 |
| Accruedprofessionalagencyfee | 125,942,529.78 | 138,158,158.51 |
| Others | 30,300,767.36 | 30,032,826.03 |
| Total | 2,165,517,831.24 | 2,383,668,985.94 |
-92-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
35.Othercurrentliabilities-continuedChangesofshort-termbondspayable:
Unit:RMB
| Nameofbond | Facevalue | Dateofissue | Termofthebond | Amountofissue | Openingbalance | Amountissuedinthecurrentperiod | Interestaccruedbasedonparvalue | Discountorpremiumamortization | Repaymentinthecurrentperiod | Closingbalance |
| 1.99%RMB1billion,Super&Short-termCommercialPaper | 1,000,000,000.00 | 2020-06-05 | 270days | 1,000,000,000.00 | 1,011,418,032.80 | - | 3,302,515.17 | - | 1,014,720,547.97 | - |
| 2.5%RMB1.2billionSuper&Short-term\CommercialPaper | 1,200,000,000.00 | 2020-11-13 | 180days | 1,200,000,000.00 | 1,204,059,968.60 | - | 11,340,579.32 | - | 1,215,400,547.92 | - |
| 2.30%RMB800millionSuper&Short-termCommercialPaper | 800,000,000.00 | 2021-01-22 | 90days | 800,000,000.00 | - | 800,000,000.00 | 4,593,698.63 | - | 804,593,698.63 | - |
| 2.73%RMB1billionSuper&Short-termCommercialPaper | 1,000,000,000.00 | 2021-03-22 | 180days | 1,000,000,000.00 | - | 1,000,000,000.00 | 7,581,054.65 | - | - | 1,007,581,054.65 |
| 2.55%RMB1billionSuper&Short-termCommercialPaper | 1,000,000,000.00 | 2021-06-07 | 180days | 1,000,000,000.00 | - | 1,000,000,000.00 | 1,693,479.45 | - | - | 1,001,693,479.45 |
| Total | 5,000,000,000.00 | 5,000,000,000.00 | 2,215,478,001.40 | 2,800,000,000.00 | 28,511,327.22 | - | 3,034,714,794.52 | 2,009,274,534.10 |
-93-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
36.Long-termborrowings
(1)Classificationoflong-termborrowings
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Creditborrowings | 5,232,812,170.21 | 5,258,127,800.87 |
| Guaranteedborrowings(Note1) | 1,097,904,954.91 | 1,629,960,889.64 |
| Mortgageborrowings(Note2) | 2,415,373,499.85 | 2,593,140,731.56 |
| Total | 8,746,090,624.97 | 9,481,229,422.07 |
| Less:Long-termborrowingsduewithinoneyear | 1,411,312,342.09 | 2,074,906,728.26 |
| Including:Creditborrowings | 476,229,413.83 | 749,046,479.86 |
| Guaranteedborrowings | 315,299,410.01 | 739,805,701.02 |
| Mortgageborrowings | 619,783,518.25 | 586,054,547.38 |
| Long-termborrowingsdueafteroneyear | 7,334,778,282.88 | 7,406,322,693.81 |
Duringtheperiod,theannualinterestrateoftheborrowingrangesfrom1.20%to5.78%.Note1:TheloanwasguaranteedbyShenzhenMagangCangmaCo.,Ltd,ChinaMerchantsPort
Services(Shenzhen)Co.,Ltd,CMPort.Note2:Asat30June2021,theGroupobtainedthelong-termloanofRMB2,415,373,499.85(31
December2020:RMB2,593,140,731.56)withitsentireequityinColomboInternational
ContainerTerminalsLimited(hereinafterreferredtoas"CICT"),andtheentireequityin
ThesarMaritimeLimited(hereinafterreferredtoas"TML"),,andthelanduseright,fixed
assetsandconstructioninprogressheldbyGuangdongYidePortCo.,Ltd.(hereinafter
referredtoas"YidePort"),thelanduserightsofShenzhenHaixingHarborDevelopment
Co.,Ltd.aswellastheseaareauserightsofDongguanChiwanPortServiceCo.,Ltd.
mortgagedascollaterals.Detailsofmortgageborrowingsareasfollows:
Unit:RMB
| Companyname | Closingbalance | Openingbalance | Collateral |
| ChinaDevelopmentBankCorporation | 890,910,467.90 | 1,027,981,472.96 | TheGroup'sentireequityinCICT |
| InternationalFinanceCorporation | 299,127,562.75 | 364,480,624.59 | TheGroup'sentireequityinTML |
| AfricanDevelopmentBank | 137,436,988.29 | 167,372,490.13 | |
| NederlandseFinancierings-MaatschappijvoorOntwikkelingslandenN.V. | 113,183,402.12 | 137,905,387.30 | |
| TheOpecFundForInternationalDevelopment | 97,014,344.68 | 118,146,703.89 | |
| SocietedePromotionetdeParticipationpourlaCooperationEconomiqueS.A. | 97,014,344.67 | 118,218,277.06 | |
| DeutscheInvestitions-undEntwicklungsgesellschaftMBH | 80,845,287.23 | 98,452,963.64 | |
| BankofChinaQianhaiShekouBranch | 241,341,293.92 | 241,370,822.05 | LanduserightsofShenzhenHaixingHarborDevelopmentCo.,Ltd(seeNote(V)63) |
| ChinaConstructionBankShundeBranch | 274,236,922.78 | 210,178,757.55 | Landuserights,fixedassetsandconstructioninprogressofYidePort(seeNote(V)63) |
| ChinaMerchantsBankDongguanBranch | 184,262,885.51 | 109,033,232.39 | SeaareauserightsofDongguanChiwanWarfCo.,Ltd.(seeNote(V)63) |
| Total | 2,415,373,499.85 | 2,593,140,731.56 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
37.Bondspayable
(1)Bondspayable
Unit:RMB
| Item | Closingbalance | Openingbalance |
| 4.375%,USD900millioncorporatebond | 5,913,943,487.58 | 5,948,107,858.02 |
| 5.000%,USD600millioncorporatebond | 3,926,753,639.09 | 3,950,488,734.13 |
| 4.750%,USD500millioncorporatebond | 3,293,570,634.41 | 3,314,305,348.22 |
| 5.000%,USD500millioncorporatebond | 3,262,240,035.06 | 3,280,606,167.04 |
| 4.890%,RMB2.5billioncorporatebond | 2,523,780,136.99 | 2,585,407,534.25 |
| 3.360%,RMB2billioncorporatebond | 2,066,826,666.69 | 2,033,040,000.00 |
| IPCA+7.8164%,BRL428millioncorporatebond | 709,183,317.05 | 620,162,618.74 |
| 4.980%,RMB400millioncorporatebond | 409,386,958.89 | 401,200,657.53 |
| 3.520%,RMB2billioncorporatebond | 2,014,658,630.13 | - |
| Total | 24,120,343,505.89 | 22,133,318,917.93 |
| Less:Bondspayableduewithinoneyear | 6,836,936,147.15 | 1,042,773,072.37 |
| Bondspayabledueafteroneyear | 17,283,407,358.74 | 21,090,545,845.56 |
-95-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
37.Bondspayable-continued
(2)Changesofbondspayable
Unit:RMB
| Nameofbonds | Facevalue | Dateofissue | Termofthebond | Amountofissue | Openingbalance | Amountissuedinthecurrentperiod | Interestaccruedbasedonparvalue | Discountorpremiumamortization | Repaymentinthecurrentperiod | Effectofchangesinforeignexchange | Closingbalance |
| 5.000%,USD500millioncorporatebond | USD500,000,000.00 | 2012-5-4 | 10years | USD500,000,000.00 | 3,280,606,167.04 | - | 80,620,573.99 | 1,098,021.91 | 80,900,808.50 | -19,183,919.38 | 3,262,240,035.06 |
| 4.750%,USD500millioncorporatebond | USD500,000,000.00 | 2015-8-3 | 10years | USD500,000,000.00 | 3,314,305,348.22 | - | 76,627,305.36 | 3,294,819.56 | 76,855,768.08 | -23,801,070.65 | 3,293,570,634.41 |
| IPCA+7.8164%,BRL428millioncorporatebond | BRL428,047,000.00 | 2016-11-7 | 5years/6years | BRL428,047,000.00 | 620,162,618.74 | - | 53,033,722.16 | 4,058,987.94 | - | 31,927,988.21 | 709,183,317.05 |
| 4.890%,RMB2.5billioncorporatebond | RMB2,500,000,000.00 | 2017-4-21 | 5years | RMB2,500,000,000.00 | 2,585,407,534.25 | - | 60,622,602.74 | - | 122,250,000.00 | - | 2,523,780,136.99 |
| 4.375%,USD900millioncorporatebond | USD900,000,000.00 | 2018-8-6 | 5years | USD900,000,000.00 | 5,948,107,858.02 | - | 126,980,188.62 | 5,016,087.81 | 127,269,374.99 | -38,891,271.88 | 5,913,943,487.58 |
| 5.000%,USD600millioncorporatebond | USD600,000,000.00 | 2018-8-6 | 10years | USD600,000,000.00 | 3,950,488,734.13 | - | 96,746,810.53 | 2,329,204.23 | 96,967,142.85 | -25,843,966.95 | 3,926,753,639.09 |
| 4.980%,RMB400millioncorporatebond | RMB400,000,000.00 | 2018-12-10 | 3years | RMB400,000,000.00 | 401,200,657.53 | - | 8,186,301.36 | - | - | - | 409,386,958.89 |
| 3.360%,RMB2billioncorporatebond | RMB2,000,000,000.00 | 2020-7-8 | 3years | RMB2,000,000,000.00 | 2,033,040,000.00 | - | 33,786,666.69 | - | - | - | 2,066,826,666.69 |
| 3.520%,RMB2billioncorporatebond | RMB2,000,000,000.00 | 2021-4-16 | 3years | RMB2,000,000,000.00 | - | 2,000,000,000.00 | 14,658,630.13 | - | - | - | 2,014,658,630.13 |
| Total | 22,133,318,917.93 | 2,000,000,000.00 | 551,262,801.58 | 15,797,121.45 | 504,243,094.42 | -75,792,240.65 | 24,120,343,505.89 | ||||
| Less:Bondspayableduewithinoneyear | 1,042,773,072.37 | 6,836,936,147.15 | |||||||||
| Bondspayabledueafteroneyear | 21,090,545,845.56 | 17,283,407,358.74 |
-96-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
38.Leaseliabilities
Unit:RMB
| Category | Closingbalance | Openingbalance(Restated) |
| Leasepayment | 2,278,003,192.85 | 2,452,804,794.89 |
| Unrecognizedfinancingcost | -756,754,556.46 | -802,003,552.44 |
| Total | 1,521,248,636.39 | 1,650,801,242.45 |
| Less:Leaseliabilitiesduewithinoneyear | 299,138,901.13 | 322,950,258.37 |
| Leaseliabilitiesdueafteroneyear | 1,222,109,735.26 | 1,327,850,984.08 |
39.Long-termpayables
(1)Summaryoflong-termpayables
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Long-termpayables | 1,246,617,547.37 | 1,192,028,415.01 |
| Specialpayables | 40,756,729.97 | 39,996,153.12 |
| Total | 1,287,374,277.34 | 1,232,024,568.13 |
| Less:Long-termpayablesduewithinoneyear | 69,078,497.48 | 3,562,994.44 |
| Long-termpayablesdueafteroneyear | 1,218,295,779.86 | 1,228,461,573.69 |
(2)Long-termpayables
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Terminalmanagementrights(Note1) | 810,214,400.60 | 749,658,074.16 |
| Payabletominorityshareholdersofsubsidiaries(Note2) | 431,018,385.63 | 437,238,325.33 |
| Others | 5,384,761.14 | 5,132,015.52 |
| Total | 1,246,617,547.37 | 1,192,028,415.01 |
| Less:Long-termpayablesduewithinoneyear | 69,078,497.48 | 3,562,994.44 |
| Long-termpayablesdueafteroneyear | 1,177,539,049.89 | 1,188,465,420.57 |
Note1:Asat12August2011,theGroupreacheda35-yearbuilding,operationandtransferagreement
throughthesubsidiaryCICTandtheSriLankaPortAuthorityonthebuilding,operation,managementanddevelopmentoftheColomboPortSouthContainerTerminal(hereinafterreferredtoasfor"BOT").Theabove-mentionedterminaloperatingrightspurchaseamountisdeterminedbydiscountingtheamounttobepaidinthefutureusingtheprevailingmarketinterestrateaccordingtotheBOTagreement.Asat30June2021,theamountisRMB810,214,400.60.Note2:ItisanunsecuredloanfromminorityshareholderofThesarMaritimeLimited,a
subsidiaryoftheCompany,withanannualinterestrateof4.65%.
-97-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
39.Long-termpayables-continued
(3)Specialpayables
Unit:RMB
| Item | Openingbalance | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance | Reason |
| RefundsofHarborConstructionFee | 34,271,558.30 | - | 619,171.22 | 33,652,387.08 | Note1 |
| Employeehousingfund | 3,852,825.60 | 319,748.07 | - | 4,172,573.67 | Note2 |
| Specialfundsforscientificresearch | 1,871,769.22 | 1,060,000.00 | - | 2,931,769.22 | |
| Total | 39,996,153.12 | 1,379,748.07 | 619,171.22 | 40,756,729.97 |
Note1:ThisrepresentstherefundoftheconstructionfeereceivedbytheGroupfromtheMinistry
ofTransport,ShenzhenMunicipalTransportationBureau.Accordingtothe"PortConstructionFeeManagementMeasures"promulgatedbytheMinistryofFinance,thispaymentisdedicatedtotheconstructionofwatertransportinfrastructure.Note2:Thisrepresenttherepairingfundforpublicareasandpublicfacilitiesandequipment
establishedaftertheGroup'ssellingthepublic-ownedhouseonthecollectivelyallocatedlandtoemployees.Thefundiscontributedbyalltheemployeeshavingownershipofthehouseaccordingtotherules,andisspeciallymanagedandusedforspecificpurpose.
40.Long-termemployeebenefitspayable
(1)Long-termemployeebenefitspayable
Unit:RMB
| Item | Closingbalance | Openingbalance(Restated) |
| Post-employmentbenefits-netliabilitiesofdefinedbenefitsplan | 427,481,498.24 | 429,830,989.42 |
| Terminationbenefits | 37,658,432.73 | 40,939,305.56 |
| Others(Note) | 62,471,559.55 | 73,756,355.48 |
| Total | 527,611,490.52 | 544,526,650.46 |
| Less:Long-termemployeebenefitspayableduewithinoneyear | 36,811,951.00 | 36,811,951.00 |
| Long-termemployeebenefitspayabledueafteroneyear | 490,799,539.52 | 507,714,699.46 |
Note:ItistheemployeeresettlementcostrelatedtolandacquisitionandreserveofShantouPort,
asubsidiaryoftheCompany.
-98-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
40.Long-termemployeebenefitspayable-continued
(2)ChangesofdefinedbenefitsplanPresentvalueofdefinedbenefitsplanobligation:
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepreviousperiod |
| I.Openingbalance | 429,830,989.42 | 454,383,940.25 |
| II.Definedbenefitscostincludedinprofitorlossfortheperiod | 12,698,930.72 | 12,830,961.87 |
| 1.Currentservicecost | 4,933,930.72 | 5,200,965.85 |
| 2.Interestadjustment | 7,765,000.00 | 7,629,996.02 |
| III.Definedbenefitscostincludedinothercomprehensiveincome | -200,890.65 | 84,448.42 |
| 1.Actuarialgains(losses) | - | - |
| 2.Effectofexchangeratechanges | -200,890.65 | 84,448.42 |
| IV.Otherchanges | -14,847,531.25 | -13,651,880.90 |
| 1.Benefitspaid | -14,847,531.25 | -13,651,880.90 |
| V.Closingbalance | 427,481,498.24 | 453,647,469.64 |
TheCompany'ssubsidiariesprovidetheregisteredretireesandin-servicestaffwithsupplementarypost-employmentbenefitplans.TheGrouphiredathird-partyactuarytoestimatethepresentvalueofitsabove-mentionedretirementbenefitplanobligationsinanactuarialmannerbasedontheexpectedcumulativewelfareunitmethod.TheGrouprecognizestheGroup'sliabilitiesbasedontheactuarialresults.Therelevantactuarialgainsorlossesareincludedinothercomprehensiveincomeandcannotbereclassifiedintoprofitorlossinthefuture.Pastservicecostsarerecognizedinprofitorlossfortheperiodinwhichtheplanisrevised.Thenetinterestisdeterminedbymultiplyingthedefinedbenefitplannetdebtornetassetsbytheappropriatediscountrate.
41.Provisions
Unit:RMB
| Item | Closingbalance | Openingbalance | Reason |
| EstimatedexpensesonShantouPortlandacquisitionandreservation | 66,138,336.08 | 66,138,336.08 | |
| Pendinglitigation(Note) | 22,497,381.33 | 17,277,583.26 | Note |
| Salesdiscount | 48,807,632.93 | 16,990,826.32 | |
| Total | 137,443,350.34 | 100,406,745.66 |
Note:ThisrepresentstheestimatedcompensationamountthattheCompany'ssubsidiaryTCP
mayneedtopayduetothependinglitigation.
42.Deferredincome
Unit:RMB
| Item | Openingbalance(Restated) | Increaseinthecurrentperiod | Decreaseinthecurrentperiod | Closingbalance |
| Governmentgrants | 1,112,272,684.13 | - | 21,019,719.24 | 1,091,252,964.89 |
| Unrealizedsale-and-leasebackincome | 908,139.86 | - | 256,908.42 | 651,231.44 |
| Total | 1,113,180,823.99 | - | 21,276,627.66 | 1,091,904,196.33 |
-99-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
42.Deferredincome-continuedItemsinvolvinggovernmentgrantsareasfollows:
Unit:RMB
| Liabilities | Openingbalance | Increase | Recognizedinnon-operatingincome | RecognizedinOthercomprehensiveincome | Closingbalance | Relatedtoassets/relatedtoincome |
| Refundfrommarinereclamationland | 355,820,652.47 | - | - | 9,674,583.96 | 346,146,068.51 | Relatedtoassets |
| Channelwideningproject | 483,473,225.10 | - | - | 6,248,749.92 | 477,224,475.18 | Relatedtoassets |
| Specialsubsidyforfacilitiesandequipment | 240,227,572.98 | - | - | 2,730,463.56 | 237,497,109.42 | Relatedtoassets |
| Intelligentsystemsubsidy | 14,803,742.19 | - | - | 1,590,504.95 | 13,213,237.24 | Relatedtoassets |
| Refundoflandtransfercharges | 6,568,666.65 | - | - | 133,600.02 | 6,435,066.63 | Relatedtoassets |
| Others | 11,378,824.74 | - | - | 641,816.83 | 10,737,007.91 | Relatedtoassets |
| Total | 1,112,272,684.13 | - | - | 21,019,719.24 | 1,091,252,964.89 |
43.Othernon-currentliabilities
Unit:RMB
| Item | Closingbalance | Openingbalance |
| TCPoperatingrightsliability(Note1) | 3,438,158,858.69 | 2,888,395,641.53 |
| ActuarialexpensesforpensiontreatmentofstaffinPublicSecurityBureau(Note2) | 165,709,999.98 | 162,810,000.00 |
| Berthprioritycallright(Note3) | 12,153,073.77 | 14,597,949.13 |
| Total | 3,616,021,932.44 | 3,065,803,590.66 |
| Less:Othernon-currentliabilitiesduewithinoneyear | 90,413,566.88 | 83,582,696.63 |
| Including:TCPoperatingrightsliability | 74,103,566.88 | 67,272,696.63 |
| ActuarialexpensesforpensiontreatmentofstaffinPublicSecurityBureau(Note2) | 16,310,000.00 | 16,310,000.00 |
| Othernon-currentliabilitiesdueafteroneyear | 3,525,608,365.56 | 2,982,220,894.03 |
Note1:Asat23February2018,CMPort,asubsidiaryoftheCompany,acquireda90%stakein
TCPandincorporateitintotheconsolidatedfinancialstatementsoftheGroup.TCPhasoperationrighttheportofParanaguaupto2048.At30June2021,thepaymenttoacquiretheportoperationrightsiscalculatedbasedonlocalcomprehensivepriceindex.Note2:Itreferthatin2020,ZhanjiangPort,asubsidiaryoftheCompany,wascompletelytaken
overbyZhanjiangPublicSecurityBureauwhichwastransferredtoZhanjiangMunicipalPeople'sGovernmentinaccordancewiththeNoticeonprintinganddistributingtheplanondeepeningthemanagementsystemreformofportandshippingpublicsecurityorgans(ZhongYangBianBanFa[2017]No.327)andthenoticeonprintinganddistributingtheimplementationplanondeepeningthemanagementsystemreformofportandshippingpublicsecurityorgansinGuangdongProvince(YueJiBianBanFa[2018]No.221).TherelevantassetsoftheformerZhanjiangPortPublicSecurityBureau,totalingRMB11,372,339.22,weretransferredtoZhanjiangCity.Theon-the-jobpoliceweretransformedintocivilservantsinaccordancewithnationalregulations.TheretiredpolicewereincludedinthejurisdictionofpensioninsuranceofZhanjianggovernmentorgansandinstitutions.ThedifferencebetweentheoriginalstandardofpensiontreatmentandtheretirementtreatmentofZhanjiangpolice(hereinafterreferredtoas"pensiontreatmentdifference")willbeundertakenbyZhanjiangPort.ZhanjiangPortaccruedrelevantliabilitiesofRMB165,709,999.98accordingtotheactuarialresults.
-100-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
43.Othernon-currentliabilities-continuedNote3:Thisrepresentstheberthprioritycallrightasagreedinthecontractenteredintowiththe
clientsin2003,withtotalamountofUSD14million.TheGroupmustgiveprioritytotheberthingrequirementsofthecontractedcustomersduringthecontractperiod.TheGroupamortizedtheberthpriorityrightwithin20yearsusingstraight-linemethod.Inthecurrentperiod,theamountincludedinoperatingincomeisRMB2,444,875.35.
44.Sharecapital
Unit:RMB
| Item | Openingbalance | Changesfortheperiod | Closingbalance | ||||
| Newissueofshare | Bonusissue | Capitalizationofsurplusreserve | Others | Sub-total | |||
| Fortheperiodfrom1Januaryto30June2021 | |||||||
| I.Restrictedtradableshares | |||||||
| 1.State-ownedshares | - | - | - | - | - | - | - |
| 2.State-ownedlegalpersonshares | - | - | - | - | - | - | - |
| 3.Otherdomesticshares | 9,496.00 | - | - | - | -2,130.00 | -2,130.00 | 7,366.00 |
| 4.Foreignshares | 1,148,648,648.00 | - | - | - | - | - | 1,148,648,648.00 |
| Totalrestrictedtradableshares | 1,148,658,144.00 | - | - | - | -2,130.00 | -2,130.00 | 1,148,656,014.00 |
| II.Non-restrictedtradableshares | |||||||
| 1.OrdinarysharesdenominatedinRMB | 593,820,070.00 | - | - | - | - | - | 593,820,070.00 |
| 2.Foreigncapitalshareslisteddomestically | 179,886,910.00 | - | - | - | 2,130.00 | 2,130.00 | 179,889,040.00 |
| 3.Foreigncapitalshareslistedoverseas | - | - | - | - | - | - | - |
| 4.Others | - | - | - | - | - | - | - |
| Totalnon-restrictedtradableshares | 773,706,980.00 | - | - | - | 2,130.00 | 2,130.00 | 773,709,110.00 |
| III.Totalshares | 1,922,365,124.00 | - | - | - | - | - | 1,922,365,124.00 |
Unit:RMB
| Item | Openingbalance | Changesfortheperiod | Closingbalance | ||||
| Newissueofshare | Bonusissue | Capitalizationofsurplusreserve | Others | Sub-total | |||
| Fortheyearended31December2020 | |||||||
| I.Restrictedtradableshares | |||||||
| 1.State-ownedshares | - | - | - | - | - | - | - |
| 2.State-ownedlegalpersonshares | 128,952,746.00 | - | - | - | -128,952,746.00 | -128,952,746.00 | - |
| 3.Otherdomesticshares | 169,602.00 | - | - | - | -160,106.00 | -160,106.00 | 9,496.00 |
| 4.Foreignshares | 1,148,648,648.00 | - | - | - | - | - | 1,148,648,648.00 |
| Totalrestrictedtradableshares | 1,277,770,996.00 | - | - | - | -129,112,852.00 | -129,112,852.00 | 1,148,658,144.00 |
| II.Non-restrictedtradableshares | |||||||
| 1.OrdinarysharesdenominatedinRMB | 464,858,324.00 | - | - | - | 128,961,746.00 | 128,961,746.00 | 593,820,070.00 |
| 2.Foreigncapitalshareslisteddomestically | 179,735,804.00 | - | - | - | 151,106.00 | 151,106.00 | 179,886,910.00 |
| 3.Foreigncapitalshareslistedoverseas | - | - | - | - | - | - | - |
| 4.Others | - | - | - | - | - | - | - |
| Totalnon-restrictedtradableshares | 644,594,128.00 | - | - | - | 129,112,852.00 | 129,112,852.00 | 773,706,980.00 |
| III.Totalshares | 1,922,365,124.00 | - | - | - | - | - | 1,922,365,124.00 |
-101-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
45.Capitalreserve
Unit:RMB
| Item | Openingbalance(Restated) | Increase | Decrease | Closingbalance |
| Fortheperiodfrom1Januaryto30June2021 | ||||
| Capitalpremium | 22,730,949,021.44 | 1,114,458.90 | 38,392,129.42 | 22,693,671,350.92 |
| Including:Capitalcontributedbyinvestors | 7,012,992,483.94 | - | - | 7,012,992,483.94 |
| Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol | 13,345,628,834.48 | - | 38,392,129.42 | 13,307,236,705.06 |
| Differencesarisingfromacquisitionofminorityinterests | 714,658,981.71 | - | - | 714,658,981.71 |
| Others | 1,657,668,721.31 | 1,114,458.90 | - | 1,658,783,180.21 |
| Othercapitalreserve | 108,649,303.12 | 175,022,805.88 | 21,420,439.82 | 262,251,669.18 |
| Including:Transferfromcapitalreserveunderthepreviousaccountingsystem | -2,781,133.00 | - | - | -2,781,133.00 |
| Sharebasedpaymentwithoutexercise | 10,096,607.62 | 5,859,913.77 | - | 15,956,521.39 |
| Otherchangesofowners'equityoftheinvesteeunderequitymethodotherthanchangesinnetprofitorloss,profitdistributionandothercomprehensiveincome | 101,333,828.50 | 3,627,961.64 | 21,420,439.82 | 83,541,350.32 |
| Others(Note) | - | 165,534,930.47 | - | 165,534,930.47 |
| Total | 22,839,598,324.56 | 176,137,264.78 | 59,812,569.24 | 22,955,923,020.10 |
Unit:RMB
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Fortheyearended31December2020 | ||||
| Capitalpremium | 22,218,126,884.40 | 731,489,964.17 | 218,667,827.13 | 22,730,949,021.44 |
| Including:Capitalcontributedbyinvestors | 7,012,992,483.94 | - | - | 7,012,992,483.94 |
| Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol | 13,345,628,834.48 | - | - | 13,345,628,834.48 |
| Differencesarisingfromacquisitionofminorityinterests | 419,130,116.03 | 514,196,692.81 | 218,667,827.13 | 714,658,981.71 |
| Others(Note) | 1,440,375,449.95 | 217,293,271.36 | - | 1,657,668,721.31 |
| OthercapitalReserve | 112,887,572.02 | 10,096,607.62 | 14,334,876.52 | 108,649,303.12 |
| Including:Transferfromcapitalreserveunderthepreviousaccountingsystem | -2,781,133.00 | - | - | -2,781,133.00 |
| Sharebasedpaymentwithoutexercise | - | 10,096,607.62 | - | 10,096,607.62 |
| Otherchangesofowners'equityoftheinvesteeunderequitymethodotherthanchangesinnet,profitorlossprofitdistributionandothercomprehensiveincome | 115,668,705.02 | - | 14,334,876.52 | 101,333,828.50 |
| Total | 22,331,014,456.42 | 741,586,571.79 | 233,002,703.65 | 22,839,598,324.56 |
Note:TheincreaseinthecurrentperiodwasmainlyduetothemergerofYingkouPortCo.,Ltd.
bytheshareswapofLiaoningPortCo.,Ltd.,anassociateoftheGroup.CapitalreservewasincreasedbyRMB165,534,930.47duetotheeffectofthepassivedilutionoftheGroup'sshareholdinginLiaoningPortCo.,Ltd.
-102-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
46.Othercomprehensiveincome
Unit:RMB
| Item | Openingbalance | Amountincurredintheperiod | Less:Othercomprehensiveincometransfertocapitalreserve | Closingbalance | ||||
| Pre-taxamountfortheperiod | Less:Amountincludedinothercomprehensiveincomeinthepriorperiodstransferredtoprofitorlossthisperiod | Less:Incometaxexpense | Post-taxincomeattributabletotheparentcompanyowner | Post-taxincomeattributabletominorityshareholders | ||||
| Fortheperiodfrom1Januaryto30June2021: | ||||||||
| I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss | 81,416,891.26 | 109,893.35 | - | 137,500.00 | 228,315.37 | -255,922.02 | -43,860.69 | 81,689,067.32 |
| Including:Changesarisingfromremeasurementofdefinedbenefitsplan | 11,318,269.18 | - | - | - | - | - | - | 11,318,269.18 |
| Othercomprehensiveincomethatcan'tbetransferredtoprofitorlossunderequitymethod | -6,986,086.44 | -440,106.65 | - | - | -184,184.63 | -255,922.02 | -43,860.69 | -7,126,410.38 |
| Changesinfairvalueofotherequityinstruments | 77,084,708.52 | 550,000.00 | - | 137,500.00 | 412,500.00 | - | - | 77,497,208.52 |
| II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss | -908,114,194.32 | -314,158,757.54 | - | - | -89,835,615.53 | -224,323,142.01 | 537,780.33 | -998,487,590.18 |
| Including:Othercomprehensiveincomethatmaybetransferredtoprofitorlossunderequitymethod | 31,725,280.52 | -55,277,714.61 | - | - | -23,133,723.56 | -32,143,991.05 | 537,780.33 | 8,053,776.63 |
| Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | -939,839,474.84 | -258,881,042.93 | - | - | -66,701,891.97 | -192,179,150.96 | - | -1,006,541,366.81 |
| Totalothercomprehensiveincome | -826,697,303.06 | -314,048,864.19 | - | 137,500.00 | -89,607,300.16 | -224,579,064.03 | 493,919.64 | -916,798,522.86 |
| Fortheyearended31December2020: | ||||||||
| I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss | 82,969,758.27 | 6,911,190.88 | - | -33,528.75 | -1,552,867.01 | 8,497,586.64 | - | 81,416,891.26 |
| Including:Changesarisingfromremeasurementofdefinedbenefitsplan | 1,069,722.83 | 35,016,155.14 | - | - | 10,248,546.35 | 24,767,608.79 | - | 11,318,269.18 |
| Othercomprehensiveincomethatcan'tbetransferredtoprofitorlossunderequitymethod | 4,830,921.62 | -28,307,578.26 | - | - | -11,817,008.06 | -16,490,570.20 | - | -6,986,086.44 |
| Changesinfairvalueofotherequityinstruments | 77,069,113.82 | 202,614.00 | - | -33,528.75 | 15,594.70 | 220,548.05 | - | 77,084,708.52 |
| II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss | -438,914,324.18 | -1,856,601,660.49 | - | - | -469,199,870.14 | -1,387,401,790.35 | - | -908,114,194.32 |
| Including:Othercomprehensiveincomethatmaybetransferredtoprofitorlossunderequitymethod | -58,950,164.54 | 217,642,457.56 | - | - | 90,675,445.06 | 126,967,012.50 | - | 31,725,280.52 |
| Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies | -379,964,159.64 | -2,074,244,118.05 | - | - | -559,875,315.20 | -1,514,368,802.85 | - | -939,839,474.84 |
| Totalothercomprehensiveincome | -355,944,565.91 | -1,849,690,469.61 | - | -33,528.75 | -470,752,737.15 | -1,378,904,203.71 | - | -826,697,303.06 |
-103-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
47.Specialreserve
Unit:RMB
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Fortheperiodfrom1Januaryto30June2021 | ||||
| Productionsafetyreserve | 10,201,178.30 | 23,456,646.73 | 18,167,103.79 | 15,490,721.24 |
| Fortheyearended31December2020 | ||||
| Productionsafetyreserve | 12,386,734.70 | 57,538,524.86 | 59,724,081.26 | 10,201,178.30 |
48.Surplusreserve
Unit:RMB
| Item | Openingbalance | Increase | Decrease | Closingbalance |
| Fortheperiodfrom1Januaryto30June2021 | ||||
| Statutorysurplusreserve | 890,690,322.28 | - | - | 890,690,322.28 |
| Fortheyearended31December2020 | ||||
| Statutorysurplusreserve | 630,345,307.43 | 260,345,014.85 | - | 890,690,322.28 |
49.Unappropriatedprofit
Unit:RMB
| Item | Amount | Proportionofappropriationorallocation |
| Fortheperiodfrom1Januaryto30June2021 | ||
| Unappropriatedprofitatthebeginningofperiodbeforeadjustment | 12,316,177,395.17 | |
| Add:Adjustmentofunappropriatedprofitatthebeginningoftheperiod | 12,942,703.53 | |
| Including:Changeinthescopeofcombinationscopeunderthesamecontrol | 12,942,703.53 | |
| Unappropriatedprofitatthebeginningofperiodafteradjustment | 12,329,120,098.70 | |
| Add:NetprofitattributabletoshareholdersoftheCompanyfortheperiod | 1,677,035,346.17 | |
| Less:Appropriationtostatutorysurplusreserve | - | |
| Appropriationtodiscretionarysurplusreserve | - | |
| Appropriationtogeneralriskreserve | - | |
| Ordinaryshares'dividendspayable | 730,498,747.12 | Note |
| Ordinaryshares'dividendsconvertedintosharecapital | - | |
| Unappropriatedprofitattheendoftheperiod | 13,275,656,697.75 | |
-104-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
49.Unappropriatedprofit-continued
Unit:RMB
| Item | Amount | Proportionofappropriationorallocation |
| Fortheyearended31December2020 | ||
| Unappropriatedprofitattheendofprioryearbeforeadjustment | 11,467,166,351.85 | |
| Add:Adjustmentofunappropriatedprofitatthebeginningoftheperiod | 4,421,264.15 | |
| Including:Changesinscopeofconsolidationofenterprisesundercommoncontrol | 4,421,264.15 | |
| Unappropriatedprofitatthebeginningoftheperiodafteradjustment | 11,471,587,616.00 | |
| Add:NetprofitattributabletoshareholdersoftheCompanyfortheperiod | 2,073,844,409.04 | |
| Pensiontreatmentdifference | -73,228,871.09 | |
| Others | 1,549,916.64 | |
| Less:Appropriationtostatutorysurplusreserve | 260,345,014.85 | |
| Appropriationtodiscretionarysurplusreserve | - | |
| Appropriationtogeneralriskreserve | - | |
| Ordinaryshares'dividendspayable | 884,287,957.04 | |
| Ordinaryshares'dividendsconvertedintosharecapital | - | |
| Unappropriatedprofitattheendoftheperiod | 12,329,120,098.70 | |
Note:Accordingtotheresolutionofshareholdersmeetingon28May2021,theCompany
distributedcashdividendsofRMB3.80(inclusiveoftax)forevery10shares,totalinguptoRMB730,498,747.12onthebasisofthetotalsharesof1,922,365,124sharesattheendof2020.
50.Operatingincomeandoperatingcosts
(1)Operatingincomeandoperatingcosts
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | ||
| Income | Cost | Income | Cost | |
| Principaloperating | 7,253,456,936.53 | 4,084,989,279.30 | 5,890,745,289.59 | 3,633,562,724.51 |
| Otheroperating | 86,485,925.73 | 113,461,884.97 | 71,752,427.37 | 109,627,779.63 |
| Total | 7,339,942,862.26 | 4,198,451,164.27 | 5,962,497,716.96 | 3,743,190,504.14 |
(2)Revenuefromcontracts
Unit:RMB
| Categoriesofcontracts | Portsoperation | Bondedlogisticsoperation | Otheroperation | Total |
| MainlandChina,HongKongandTaiwanarea | 5,268,414,993.63 | 197,393,362.01 | 86,485,925.73 | 5,552,294,281.37 |
| -PearlRiverDelta | 2,958,636,092.61 | 135,929,453.79 | 86,485,925.73 | 3,181,051,472.13 |
| -YangtzeRiverDelta | 445,352,534.85 | - | - | 445,352,534.85 |
| -BohaiRim | 29,216,911.55 | 61,463,908.22 | - | 90,680,819.77 |
| -Otherareas | 1,835,209,454.62 | - | - | 1,835,209,454.62 |
| Othercountries | 1,780,044,983.01 | 7,603,597.88 | - | 1,787,648,580.89 |
| Total | 7,048,459,976.64 | 204,996,959.89 | 86,485,925.73 | 7,339,942,862.26 |
-105-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
50.Operatingincomeandoperatingcosts-continued
(3)Descriptionofperformanceobligations
TheGroupprovideswharfservice,bondedlogisticsserviceandotherservices.Theseservicesareobligationsperformedoveraperiodoftime.Forwharfservices,asthehandlingtimeforcontainersandbulkcargosisshort,themanagementbelievesthatitisnotnecessarytorecognizerevenueaccordingtotheprogresstowardsthecompletionofcontractanditisanappropriatemethodtorecognizethefulfillmentofperformanceobligationandrevenueuponthecompletionoftheservice.Forbondedlogisticsserviceandotherservices,thecustomersevenlyobtainsandconsumestheeconomicbenefitsfromtheGroup'sperformanceofcontract,meanwhilethechargingrulesasagreedinthecontracttermsusuallyadoptdaily/month/yearlybasis.Duringtheprocessofrenderingservices,theGrouprecognizesrevenueusingstraight-linemethod.PartoftheGroup'shandlingcontractsareestablishedwithdiscountterms,i.e.thecustomerswhosebusinessvolumereachesagreedlevel,aregrantedwithpreferentialchargerateordiscount.Attheendoftheperiod,asthebusinessquantityfinallyrealizedwithinthecontractperiodisuncertain,thecontractconsiderationissubjecttovariablefactors.Themanagementincludedthispartofdiscountinprovisions.DetailsaresetoutinNote(V)41.TheGroup'srevenuecontractdoesnothavesignificantfinancingcomponents.
(4)Attheendoftheperiod,thevariableconsiderationofRMB48,807,632.93(31December
2020:RMB16,990,826.32)arisingfromsalesdiscountisnotincludedinthetransactionpriceduetotherestrictionrequirementsrelatingtovariableconsiderations.
51.Taxesandlevies
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod(Restated) |
| Propertytax | 34,695,044.14 | 32,845,791.16 |
| Landusetax | 18,759,104.16 | 14,571,417.76 |
| Cityconstructionandmaintenancetax | 4,645,878.43 | 3,120,385.92 |
| Educationsurchargesandlocaleducationsurcharges | 3,499,847.04 | 2,341,221.37 |
| Stampduty | 1,588,858.62 | 4,376,444.35 |
| Others(Note) | 24,482,902.09 | 20,317,484.39 |
| Total | 87,671,634.48 | 77,572,744.95 |
Note:Othersaremainly:(1)2taxes,theProgramofSocialIntegrationandContributionforthe
FinancingofSocialSecurityandTaxonServices,withtotalamountofBRL16,701,615.20(equivalenttoRMB20,068,681.78)assumedbyCompany'ssubsidiaryTCPinthecurrentperiod.Thetotalamountis;and(2)theenvironmentalprotectiontaxofRMB2,939,339.36assumedbyZhanjiangPort,asubsidiaryofthecompany,inthecurrentperiod.
-106-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
52.Administrativeexpenses
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod(Restated) |
| Employee'ssalary | 571,878,311.76 | 508,551,934.96 |
| Depreciationexpenses | 36,293,887.29 | 43,742,178.23 |
| Amortizationofintangibleassets | 31,103,215.97 | 32,131,903.34 |
| Feespaidtoagencies | 21,580,976.43 | 32,640,338.65 |
| Others | 105,513,581.92 | 128,655,610.27 |
| Total | 766,369,973.37 | 745,721,965.45 |
53.Financialexpenses
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod(Restated) |
| Interestexpenses | 894,059,966.10 | 977,499,521.99 |
| Less:Capitalizedinterestexpenses | 43,265,921.33 | 29,853,904.73 |
| Less:Interestincome | 183,191,011.93 | 142,692,352.77 |
| Interestexpensesofleaseliabilities | 41,716,504.99 | 50,320,245.21 |
| Handlingfee | 8,429,111.68 | 8,751,569.28 |
| Exchangedifferences | 8,584,164.43 | -25,043,006.36 |
| Others | 3,776,199.94 | 2,426,563.56 |
| Total | 730,109,013.88 | 841,408,636.18 |
54.Otherincome
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod(Restated) |
| Subsidyforbusinessdevelopment | 251,275,221.00 | 4,764,700.00 |
| Transferredfromdeferredincome | 21,019,719.24 | 19,070,751.25 |
| Subsidyforjobstabilization | 13,934,992.63 | 837,596.90 |
| AdditionaldeductionofVAT | 12,256,071.53 | 7,085,364.75 |
| Subsidyforbusinessoperation | 2,158,465.47 | 1,995,842.60 |
| Refundofwithholdingtax | 1,751,374.91 | 2,254,175.78 |
| Specialfundforinnovation | 1,674,200.00 | 2,520,200.00 |
| Unemploymentinsurancereimbursement | - | 15,044,277.64 |
| Others | 1,912,213.84 | 2,544,257.44 |
| Total | 305,982,258.62 | 56,117,166.36 |
-107-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
55.Investmentincome
(1)Detailsofinvestmentincome:
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod(Restated) |
| Long-termequityinvestmentsincomeunderequitymethod | 3,557,359,417.25 | 1,393,872,651.34 |
| Including:Long-termequityinvestmentsincomeofassociatedenterprisesunderequitymethod | 3,462,322,244.32 | 1,217,778,295.61 |
| Including:Long-termequityinvestmentsincomeofjointventureunderequitymethod | 95,037,172.93 | 176,094,355.73 |
| Investmentincomeonheld-for-tradingfinancialassets | 7,908,358.90 | - |
| Investmentincomeonothernon-currentfinancialassets | 40,188,401.29 | 72,554,362.03 |
| Dividendincomeonotherequityinstruments | 460,000.00 | 460,131.33 |
| Interestincomeondebtinvestments | 3,827,414.15 | 37,722,123.77 |
| Total | 3,609,743,591.59 | 1,504,609,268.47 |
ThereisnosignificantrestrictionontheremittanceoftheGroup'sinvestmentincome.
(2)Detailsoflong-termequityinvestmentsincomeunderequitymethod
Unit:RMB
| Investee | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod(Restated) | Reasonforchanges |
| ShanghaiInternationalPort(Group)Co.,Ltd. | 2,327,928,232.22 | 1,022,649,024.58 | Changesinnetprofitofinvestee |
| NanshanGroup | 560,718,761.21 | -67,388,586.72 | Changesinnetprofitofinvestee |
| TerminalLinkSAS | 182,473,114.97 | 108,374,645.14 | Changesinnetprofitofinvestee |
| ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd. | 108,224,200.00 | 12,188,400.29 | Changesinnetprofitofinvestee |
| LiaoningPortCo.,Ltd. | 91,600,129.01 | 88,081,029.71 | Changesinnetprofitofinvestee |
| Euro-AsiaOceangateS.àr.l. | 35,657,835.28 | 32,577,150.24 | Changesinnetprofitofinvestee |
| ModernTerminalsLimited | 41,893,785.31 | 19,835,459.97 | Changesinnetprofitofinvestee |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | 30,849,525.86 | 51,573,423.78 | Changesinnetprofitofinvestee |
| Others | 178,013,833.39 | 125,982,104.35 | Changesinnetprofitofinvestee |
| Total | 3,557,359,417.25 | 1,393,872,651.34 |
56.Gainsonchangesinfairvalue(lossismarkedwith"-")
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Held-for-tradingfinancialassets | 7,839.21 | - |
| Othernon-currentfinancialassets | -45,536,366.63 | -138,571,248.16 |
| Including:Financialassetsatfairvaluethroughprofitorloss | -45,536,366.63 | -138,571,248.16 |
| Othernon-currentliabilities | -443,004,339.03 | -157,164,405.14 |
| Including:Financialliabilitiesatfairvaluethroughprofitorloss | -443,004,339.03 | -157,164,405.14 |
| Total | -488,532,866.45 | -295,735,653.30 |
-108-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
57.Gainsonimpairmentofcredit(lossismarkedwith"-")
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod(Restated) |
| I.Gainsonimpairmentofcreditofaccountsreceivable(lossismarkedwith"-") | -1,176,139.34 | 102,546.48 |
| II.Gainsonimpairmentofcreditofotherreceivables(lossismarkedwith"-") | -1,724,448.07 | -967,713.09 |
| III.Gainsonimpairmentofcreditoflong-termreceivables(lossismarkedwith"-") | 314,255.21 | -2,718,612.10 |
| Total | -2,586,332.20 | -3,583,778.71 |
58.Gainsfromimpairmentofassets(lossismarkedwith"-")
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Gainsfromdeclineinvalueofinventories | - | 947,693.77 |
| Total | - | 947,693.77 |
59.Gainsondisposalofassets(lossismarkedwith"-")
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Gainsondisposalofnon-currentassets | 9,432,717.92 | 560,256,383.38 | 9,432,717.92 |
| Including:Gainsondisposaloffixedassets(Lossesareindicatedwith"-") | 12,639,946.67 | -17,221,138.93 | 12,639,946.67 |
| Gainsondisposalofintangibleassets | -3,516,976.79 | 579,800,163.81 | -3,516,976.79 |
| Others | 309,748.04 | -2,322,641.50 | 309,748.04 |
60.Non-operatingincome
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Governmentgrants | 358,210.35 | 16,416,962.22 | 358,210.35 |
| Insurancecompensationreceived | 325,396.51 | 3,485,302.26 | 325,396.51 |
| Gainsfromscrappingofnon-currentassets | 2,379,435.54 | 2,026,187.96 | 2,379,435.54 |
| Compensationreceivedforcontractsviolation | 924,253.93 | 864,126.63 | 924,253.93 |
| Exemptedcurrentaccounts | 1,365,449.42 | - | 1,365,449.42 |
| Others | 23,634,923.98 | 4,952,786.32 | 23,634,923.98 |
| Total | 28,987,669.73 | 27,745,365.39 | 28,987,669.73 |
-109-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
61.Non-operatingexpenses
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Amountincludedinnon-recurringprofitorlossforthecurrentperiod |
| Externaldonations | 526,437.28 | 433,214.18 | 526,437.28 |
| Lossesonretirementofnon-currentassets | 7,080,879.70 | 4,646,632.04 | 7,080,879.70 |
| Compensation,liquidateddamagesandpenalties | 553,684.53 | 9,383,479.78 | 553,684.53 |
| Litigationlosses | 4,265,352.56 | 6,107,367.67 | 4,265,352.56 |
| Others | 1,897,510.20 | 2,539,628.84 | 1,897,510.20 |
| Total | 14,323,864.27 | 23,110,322.51 | 14,323,864.27 |
62.Incometaxexpenses
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Currenttaxexpenses | 596,520,712.86 | 643,414,033.05 |
| Deferredtaxexpenses | 46,917,882.26 | -130,246,569.35 |
| Total | 643,438,595.12 | 513,167,463.70 |
Reconciliationofincometaxexpensestotheaccountingprofitisasfollows:
Unit:RMB
| Item | Amountincurredinthecurrentperiod |
| Accountingprofit | 4,907,699,839.95 |
| Incometaxexpensescalculatedat25% | 1,226,924,959.99 |
| Effectofnon-deductiblecost,expensesandlosses | 123,834,019.18 |
| Accruedincometaxexpenses | 393,501,986.67 |
| Effectofdeductibletemporarydifferencesanddeductiblelossesforwhichthedeferredtaxassetsarenotrecognizedincurrentyear | 36,963,410.99 |
| Effectoftax-freeincome(Note) | -598,127,300.63 |
| Effectoftaxincentivesandchangesoftaxrate | -220,096,837.55 |
| Effectofdifferenttaxratesofsubsidiariesoperatinginotherjurisdictions | -264,233,040.74 |
| Effectofutilizingdeductiblelossesforwhichthedeferredtaxassetswerenotrecognizedinpriorperiod | -27,840,036.94 |
| Effectofadjustmentstoprior-yearincometax | -30,394,194.73 |
| Changesintheopeningbalanceofdeferredtaxassets/liabilitiesduetotaxadjustments | - |
| Effectofunrecognizedtaxabletemporarydifferenceforthepurposeoftax | -347,404.28 |
| Others | 3,253,033.16 |
| Incometaxexpenses | 643,438,595.12 |
Note:Thismainlyrepresentsthetaxeffectoninvestmentincomefromjointventureand
associates.
-110-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
63.Assetswithrestrictedownershiporuseright
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Cashandbankbalances(Note1) | 12,259,378.15 | 11,528,570.90 |
| EquityinvestmentinCICT(Note2) | 1,820,922,384.09 | 1,626,554,439.58 |
| EquityinvestmentinTML(Note2) | 837,308,977.18 | 859,148,327.98 |
| Fixedassets(Note3) | 341,262,588.64 | 341,931,071.09 |
| Intangibleassets(Note3) | 215,521,701.84 | 218,825,477.36 |
| Constructioninprogress(Note3) | 39,017,486.19 | 43,751,101.60 |
| Total | 3,266,292,516.09 | 3,101,738,988.51 |
Note1:DetailsofrestrictedcashandbankbalancesaresetoutinNote(V)1.Note2:DetailsofmortgagedequityandinterestsaresetoutinNote(V)36.Note3:YidePortmortgageditslandwithpropertyright,fixedassetsandconstructioninprogress
toobtainbankborrowings;ShenzhenHaixingHarborDevelopmentCo.,Ltd.mortgageditslandwithpropertyrighttoobtainbankborrowings;DongguanChiwanWarfCo.,Ltd.mortgageditsseaareauserightwithpropertyrighttoobtainbankborrowings.DetailsofmortgageborrowingsaresetoutinNote(V)36.
64.OthercomprehensiveincomeDetailsaresetoutinNote(V)46.
65.Itemsincashflowstatement
(1)Othercashreceiptsrelatingtooperatingactivities:
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod(Restated) |
| Governmentgrants | 271,313,303.29 | 45,331,564.62 |
| Interestincome | 75,974,603.30 | 89,851,546.27 |
| Guaranteesanddeposits | 20,852,450.76 | 44,309,278.23 |
| Rentals | 4,157,219.40 | 3,840,803.19 |
| Insurancecompensation | 1,932,522.06 | 6,093,294.49 |
| Harborconstructionfeeandservicechargerefund | 124,986.79 | 161,267.76 |
| Others | 229,171,279.38 | 237,394,967.82 |
| Total | 603,526,364.98 | 426,982,722.38 |
-111-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
65.Itemsincashflowstatement-continued
(2)Othercashpaymentsrelatingtooperatingactivities
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod(Restated) |
| Advancepayment | 127,724,052.53 | 125,126,233.17 |
| Operatingexpensessuchasoperatingcostsandadministrationexpenseetc. | 76,583,283.18 | 107,164,204.34 |
| Guaranteesanddeposits | 17,586,204.25 | 20,785,228.07 |
| Harbourduesoncargo | 6,404,202.74 | - |
| Rentals | 5,187,155.54 | 9,242,133.46 |
| Portcharges | 4,837,252.74 | 2,933,172.39 |
| Portconstructionfee | 252,673.92 | 6,631,496.50 |
| Others | 169,468,219.41 | 101,421,481.51 |
| Total | 408,043,044.31 | 373,303,949.44 |
(3)Othercashreceiptsrelatingtoinvestingactivities
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Recoveryofprojectadvanceprincipal | 179,352,864.40 | 363,580,000.00 |
| Receiptofprojectadvanceinterest | 81,714,623.32 | - |
| Recoveryofloans | 9,462,511.39 | 43,282,119.52 |
| CompensationreceivedfromZhanjiangPortintransitionperiod | - | 3,803,477.07 |
| Others | 85,123,172.47 | 99,121,590.00 |
| Total | 355,653,171.58 | 509,787,186.59 |
(4)Othercashreceiptsrelatingtoinvestingactivities
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| StaffresettlementcostsrelatedtolandacquisitionandreserveinShantouPort | 11,284,795.93 | - |
| Relatedpartyborrowings | - | 3,009,744,121.38 |
| Others | 104.00 | 25,948.75 |
| Total | 11,284,899.93 | 3,009,770,070.13 |
(5)Othercashpaymentsrelatingtofinancingactivities
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Acquisitionofminorityshareholders'equitybyDalianPortLogisticsNetworkCo.,Ltd.("DPN") | 8,748,637.26 | - |
| SINOSUREpremiuminCDBloans | 1,748,638.84 | - |
| Acquisitionofminorityshareholders'equitybyCMPort | - | 755,986,916.38 |
| Others | 999,231.79 | 585,881.79 |
| Total | 11,496,507.89 | 756,572,798.17 |
-112-
V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
66.Supplementaryinformationtothecashflowstatement
(1)Supplementaryinformationtothecashflowstatement
Unit:RMB
| Supplementaryinformation | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| 1.Reconciliationofnetprofittocashflowsfromoperatingactivities: | ||
| Netprofit | 4,264,261,244.83 | 1,796,694,443.47 |
| Add:Provisionforimpairmentlossesofassets | - | -947,693.77 |
| Provisionforimpairmentlossesofcredit | 2,586,332.20 | 3,583,778.71 |
| Depreciationoffixedassets | 914,300,614.45 | 943,286,583.19 |
| Depreciationofinvestmentproperty | 94,835,428.40 | 94,989,539.23 |
| Depreciationofright-of-useassets | 166,527,483.26 | 154,716,139.25 |
| Amortizationofintangibleassets | 303,613,191.00 | 311,615,155.36 |
| Amortizationoflong-termprepaidexpenses | 23,468,890.89 | 20,891,672.06 |
| Losses(gains)ondisposaloffixedassets,intangibleassetsandotherlong-termassets | -9,432,717.92 | -560,256,383.38 |
| Lossesonretirementoffixedassets,intangibleassetsandotherlong-termassets | 4,701,444.16 | 2,620,444.08 |
| Losses(gains)onchangesinfairvalue | 488,532,866.45 | 295,735,653.30 |
| Financialexpenses | 799,077,760.88 | 972,922,856.11 |
| Investmentloss(income) | -3,609,743,591.59 | -1,504,609,268.47 |
| Decrease(increase)indeferredtaxassets | -69,535,313.14 | -16,215,090.44 |
| Increase(decrease)indeferredtaxliabilities | 116,453,195.40 | -114,085,052.68 |
| Decrease(increase)ininventories | 4,815,029.15 | -25,863,281.38 |
| Decrease(increase)inoperatingreceivables | -1,125,312,552.90 | -1,414,945,081.25 |
| Increaseinoperatingpayables | 565,811,102.44 | 1,097,606,789.69 |
| Netcashflowsfromoperatingactivities | 2,934,960,407.96 | 2,057,741,203.08 |
| 2.Significantinvestingandfinancingactivitiesthatdonotinvolvecashreceiptsandpayments: | ||
| Conversionofdebtintocapital | - | - |
| Convertiblebondsduewithinoneyear | - | - |
| Fixedassetsunderfinancelease | - | - |
| 3.Netchangesincashandcashequivalents: | ||
| Closingbalanceofcash | 9,347,523,070.31 | 7,300,058,483.14 |
| Less:Openingbalanceofcash | 11,898,618,327.29 | 7,787,660,214.80 |
| Add:Closingbalanceofcashequivalents | - | - |
| Less:Openingbalanceofcashequivalents | - | - |
| Netincrease(decrease)incashandcashequivalents | -2,551,095,256.98 | -487,601,731.66 |
(2)Cashandcashequivalents
Unit:RMB
| Item | Closingbalance | Openingbalance |
| I.Cash | 9,347,523,070.31 | 11,898,618,327.29 |
| Including:Cashonhand | 363,642.53 | 575,797.26 |
| Bankdeposits | 8,996,915,786.39 | 11,545,752,102.19 |
| Othermonetaryfunds | 350,243,641.39 | 352,290,427.84 |
| II.Cashequivalents | - | - |
| III.Closingbalanceofcashandcashequivalents | 9,347,523,070.31 | 11,898,618,327.29 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
67.Foreigncurrencymonetaryitems
| Item | Closingbalanceoforiginalcurrency | Exchangerate | ClosingamountinRMB |
| Cashandbankbalances | 1,057,715,232.68 | ||
| Including:HKD | 141,739,185.69 | 0.8348 | 118,323,872.21 |
| USD | 21,388,326.29 | 6.4824 | 138,647,686.34 |
| EUR | 71,636,730.96 | 7.7326 | 553,938,185.82 |
| RMB | 246,805,488.31 | 1.0000 | 246,805,488.31 |
| Accountsreceivable | 203,201,673.27 | ||
| Including:HKD | 2,449,551.71 | 0.8348 | 2,044,885.77 |
| USD | 3,481,663.19 | 6.4824 | 22,569,533.46 |
| EUR | 23,095,369.48 | 7.7326 | 178,587,254.04 |
| Otherreceivables | 571,706,948.69 | ||
| Including:HKD | 91,891,940.77 | 0.8348 | 76,711,392.15 |
| USD | 4,722,413.28 | 6.4824 | 30,612,571.85 |
| EUR | 32,697,154.49 | 7.7326 | 252,834,016.81 |
| RMB | 211,548,967.88 | 1.0000 | 211,548,967.88 |
| Othernon-currentassets | 30,060,781.71 | ||
| Including:EUR | 3,887,538.70 | 7.7326 | 30,060,781.71 |
| Short-termborrowings | 995,081,600.00 | ||
| Including:HKD | 1,192,000,000.00 | 0.8348 | 995,081,600.00 |
| Accountspayable | 77,510,713.84 | ||
| Including:HKD | 4,537,349.76 | 0.8348 | 3,787,779.58 |
| USD | 31,136.44 | 6.4824 | 201,838.86 |
| EUR | 9,048,429.47 | 7.7326 | 69,967,885.72 |
| RMB | 3,553,209.68 | 1.0000 | 3,553,209.68 |
| Otherpayables | 323,748,828.95 | ||
| Including:HKD | 190,686,125.70 | 0.8348 | 159,184,777.73 |
| USD | 23,834,969.36 | 6.4824 | 154,507,805.38 |
| EUR | 1,300,499.94 | 7.7326 | 10,056,245.84 |
| Non-currentliabilitiesduewithinoneyear | 5,759,290,903.74 | ||
| Including:USD | 499,122,356.96 | 6.4824 | 3,235,510,766.75 |
| RMB | 2,523,780,136.99 | 1.0000 | 2,523,780,136.99 |
| Long-termborrowings | 2,937,510,647.50 | ||
| Including:USD | 222,800,000.00 | 6.4824 | 1,444,278,720.00 |
| EUR | 106,462,500.00 | 7.7326 | 823,231,927.50 |
| RMB | 670,000,000.00 | 1.0000 | 670,000,000.00 |
| Bondspayable | 13,160,997,029.39 | ||
| Including:USD | 2,030,266,109.68 | 6.4824 | 13,160,997,029.39 |
| Long-termpayables | 1,975,705.16 | ||
| Including:HKD | 2,366,680.83 | 0.8348 | 1,975,705.16 |
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V.NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued
68.Governmentgrants
Unit:RMB
| Type | Amount | Item | Account | Amountincludedinprofitorlossfortheperiod |
| Relatedtoincome | 251,275,221.00 | Subsidyforbusinessdevelopment | Otherincome | 251,275,221.00 |
| Relatedtoincome | 13,934,992.63 | Subsidyforjobstabilization | Otherincome | 13,934,992.63 |
| Relatedtoincome | 2,158,465.47 | Subsidyforbusinessoperation | Otherincome | 2,158,465.47 |
| Relatedtoincome | 1,674,200.00 | Specialfundforinnovation | Otherincome | 1,674,200.00 |
| Relatedtoincome | 1,912,213.84 | Others | Otherincome | 1,912,213.84 |
| Relatedtoincome | 358,210.35 | Others | Non-operatingincome | 358,210.35 |
| Total | 271,313,303.29 | 271,313,303.29 |
69.LeaseUndiscountedleasereceiptssubsequenttothebalancesheetdateareasfollows:
Unit:RMB
| Maturityanalysisofundiscountedleasereceipts | Closingbalance |
| 1styearsubsequenttothebalancesheetdate | 219,249,796.09 |
| 2ndyearsubsequenttothebalancesheetdate | 136,317,870.06 |
| 3rdyearsubsequenttothebalancesheetdate | 102,450,753.00 |
| 4thyearsubsequenttothebalancesheetdate | 85,838,451.42 |
| 5thyearsubsequenttothebalancesheetdate | 81,548,526.40 |
| Subsequentyears | 302,616,011.07 |
| Total | 928,021,408.04 |
Note1:TheoperatingleaseswheretheGroupasthelessorarerelatedtoportandterminal
facilities,machineryequipment,vehicles,landandbuildings,withleasetermsrangingfrom1monthto50yearsandoptiontorenewtheleaseofportandterminalfacilities,machineryequipment,landandbuildings.TheGroupconsidersthatastheleasedassetsareproperlyused,theunguaranteedbalanceofsuchassetsdoesnotconstitutesmaterialriskoftheGroup.Note2:Fortheperiodfrom1Januaryto30June2021,therevenuerelatingtooperatinglease
amountstoRMB210,384,381.50;thereisnorevenuerelatingtovariableleasepaymentthatisnotincludedinleasereceipts.VI.CHANGESINSCOPEOFCONSOLIDATION
1.BusinesscombinationnotinvolvingenterprisesundercommoncontrolTheGrouphasnobusinesscombinationnotinvolvingenterprisesundercommoncontrolinthecurrentperiod.
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VI.CHANGESINSCOPEOFCONSOLIDATION-continued
2.Businesscombinationinvolvingenterprisesundercommoncontrol
(1)CompositionoftheGroup
Unit:RMB
| Nameofcombinedparty | Proportionofequityobtainedinbusinesscombination(%) | Basisforbusinesscombinationunderthesamecontrol | Combinationdate | Basisofcombinationdate | Incomeofthecombinedpartyfromthebeginningofthecurrentperiodtothecombinationdate | Netprofitofthecombinedpartyfromthebeginningofthecurrentperiodtothecombinationdate | Incomeofthecombinedpartyduringthecomparisonperiod | Netprofitofthecombinedpartyduringthecomparisonperiod |
| DPN | 79.03 | Controlledbythesamepartybeforeandafterthecombination,andthecontrolisnottemporary | 9February2021 | Transferofactualcontrol | 6,730,476.41 | -1,670,529.39 | 38,453,860.40 | -356,424.02 |
| YingkouGangxinTechnologyCo.,Ltd.("GangXinKeJi") | 100.00 | Controlledbythesamepartybeforeandafterthecombination,andthecontrolisnottemporary | 9February2021 | Transferofactualcontrol | - | -1,585,261.11 | 1,546,698.08 | -643,614.91 |
(2)Combinationcost
Unit:RMB
| Combinationcost | DPN | GangXinKeJi |
| Cash | - | - |
| Facevalueofequitysecuritiesissued | 66,576,790.71 | 13,918,166.22 |
| Totalcombinationcosts | 66,576,790.71 | 13,918,166.22 |
(3)Bookvalueofassetsandliabilitiesofthecombinedpartyonthecombinationdate
Unit:RMB
| Item | DPN | GangXinKeJi | ||
| Combinationdate | Openingbalance | Combinationdate | Openingbalance | |
| Assets: | ||||
| Currentassets | 131,465,942.76 | 140,838,127.92 | 18,138,156.41 | 18,319,351.22 |
| Longtermequityinvestment | 10,246,299.45 | 10,487,799.45 | - | - |
| Fixedassets | 8,102,180.97 | 8,136,170.96 | 34,046.16 | 35,363.69 |
| Right-of-useassets | 517,511.87 | 526,095.34 | - | - |
| Intangibleassets | 5,994,866.71 | 6,088,378.29 | - | - |
| Longtermdeferredexpenses | 131,052.72 | 157,263.23 | - | - |
| Deferredtaxassets | 126,018.46 | 126,018.46 | - | - |
| Liabilities: | ||||
| Currentliabilities | 84,299,499.68 | 56,894,215.88 | 2,096,139.03 | 2,410,894.10 |
| Deferredincome | 278,444.67 | 293,140.09 | - | - |
| Leaseliabilities | 444,186.06 | 427,236.03 | - | - |
| Netassets | 71,561,742.53 | 108,745,261.65 | 16,076,063.54 | 15,943,820.81 |
| Less:Minorityinterests | - | 20,332,141.71 | - | - |
| Netassetsacquired | 71,561,742.53 | 88,413,119.94 | 16,076,063.54 | 15,943,820.81 |
3.Reversepurchase
TheGrouphasnoreversepurchaseinthecurrentperiod.
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VI.CHANGESINSCOPEOFCONSOLIDATION-continued
4.Disposalofsubsidiary
ThereisnolossofcontroloverthedisposalofsubsidiaryinvestmentintheGroupinthecurrentperiod.
5.Scopeofconsolidationchangeforotherreasons
TheGrouphasnoscopeofconsolidationchangeforotherreasonsinthecurrentperiod.VII.EQUITYINOTHERENTITIES
1.Interestsinsubsidiaries
(1)CompositionoftheGroup
| Nameofthesubsidiary | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB'0000,unlessotherwisespecified) | Proportionofownershipinterest(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| ShenzhenChiwanInternationalFreightAgencyCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 550 | 100.00 | - | Investmentestablishment |
| ChiwanWharf(HongKong)Co.,Ltd.("ChiwanWharf(HongKong)") | HongKong,PRC | HongKong,PRC | Investmentholding | HKD1,000,000 | 100.00 | - | Investmentestablishment |
| DongguanChiwanWarfCo.,Ltd. | Dongguan,PRC | Dongguan,PRC | Logisticssupportservices | 45,000.00 | 85.00 | - | Investmentestablishment |
| DongguanChiwanTerminalCo.,Ltd. | Dongguan,PRC | Dongguan,PRC | Logisticssupportservices | 40,000.00 | 100.00 | - | Investmentestablishment |
| ShenzhenChiwanHarborContainerCo.Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 28,820.00 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenChiwanPortDevelopmentCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 1,500.00 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChiwanContainerTerminalCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | USD95,300,000 | 55.00 | 20.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenChiwanTugboatCo.,Ltd. | Shenzhen,PRC | Shenzhen,PRC | Logisticssupportservices | 2,400.00 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChiwanShipping(HongKong)Limited | HongKong,PRC | HongKong,PRC | Logisticssupportservices | HKD800,000 | 100.00 | - | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsPort(Zhoushan)RoRoLogisticsCo.,Ltd | PRC | PRC | Logisticssupportservices | 17,307.86 | 51.00 | - | Assetsacquisition |
| CMPort | HongKong,PRC | HongKong,PRC | Investmentholding | HKD42,521,339,900.00 | 41.85 | Businesscombinationinvolvingenterprisesundercommoncontrol | |
| ChinaMerchantsContainerServicesLimited | HongKong | HongKong | Logisticssupportservices | HKD500,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsInternational(China)InvestmentCo.,Ltd. | PRC | PRC | Investmentholding | USD30,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| QingdaoPortMerchantsInternationalContainerTerminalCo.,Ltd. | PRC | PRC | Logisticssupportservices | USD206,300,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsInternationalTerminal(Qingdao)Co.,Ltd. | PRC | PRC | Logisticssupportservices | USD44,000,000 | - | 90.10 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | PRC | PRC | Logisticssupportservices | 70,000.00 | 40.00 | 60.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsPortServices(Shenzhen)Co.,Ltd. | PRC | PRC | Logisticssupportservices | 55,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShekouContainerTerminalsLtd. | PRC | PRC | Logisticssupportservices | HKD618,201,200 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenLianyunjieContainerTerminalsCo.,Ltd | PRC | PRC | Logisticssupportservices | 60,854.90 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| AnxunjieContainerTerminals(Shenzhen)Co.,Ltd. | PRC | PRC | Logisticssupportservices | 127,600.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
-117-
VII.EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(1)CompositionoftheGroup-continued
| Nameofthesubsidiary | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB'0000,unlessotherwisespecified) | Proportionofownershipinterest(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| ShenzhenHaiqinEngineeringManagementCo.,Ltd | PRC | PRC | Engineeringsupervisionservices | 300.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenHaixingHarborDevelopmentCo.,Ltd | PRC | PRC | Logisticssupportservices | 53,072.92 | - | 67.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| MagangCangma | PRC | PRC | Logisticssupportservices | 33,500.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenMawanGanghangCo.,Ltd. | PRC | PRC | Logisticssupportservices | 20,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenZhongzhiInvestmentCo.,Ltd. | PRC | PRC | Investmentconsulting | 4,000.00 | - | 75.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenHaixingLogisticsDevelopmentCo.,Ltd. | PRC | PRC | Logisticssupportservices | 7,066.79 | - | 67.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenLianyongtongTerminalCo.,Ltd. | PRC | PRC | Logisticssupportservices | USD7,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenLiandaTugboatCo.,Ltd. | PRC | PRC | Logisticssupportservices | 200.00 | - | 60.29 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ZhangzhouZhongliOuterWheelTallyCo.,Ltd. | PRC | PRC | Logisticssupportservices | 200.00 | - | 84.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| XiamenwanPortAffairs(note2) | PRC | PRC | Logisticssupportservices | 44,450.00 | - | 31.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ZhangzhouChinaMerchantsPortCo.,Ltd. | PRC | PRC | Logisticssupportservices | 100,000.00 | - | 60.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ZhangzhouChinaMerchantsTugboatCompanyLimited | PRC | PRC | Logisticssupportservices | 1,500.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsInternationalTechnologyCompanyLimited("CMIT") | PRC | PRC | ITservices | 8,784.82 | 13.18 | 43.74 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| DPN(Note3) | PRC | PRC | ITservices | 3,200.00 | - | 79.03 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| YingkouGangxin(Note3) | PRC | PRC | ITservices | 800.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ATJ | PRC | PRC | Preparationforwarehousingprojects | HKD100,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ASJ | PRC | PRC | Preparationforwarehousingprojects | HKD100,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| AnyunjiePortWarehousingService(Shenzhen)Co.,Ltd. | PRC | PRC | Preparationforwarehousingprojects | 6,060.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| YidePort | PRC | PRC | Logisticssupportservices | 21,600.00 | - | 51.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| MegaShekouContainerTerminalsLimited | BritishVirginIslands | BritishVirginIslands | Investmentholding | USD120.00 | - | 80.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| TML | Cyprus | Cyprus | Investmentholding | EUR5,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| CICT | SriLanka | SriLanka | Logisticssupportservices | USD150,000,100 | - | 85.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| LomeContainerTerminalS.A. | GovernmentofRepublicofTogo | GovernmentofRepublicofTogo | Logisticssupportservices | FCFA200,000,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| Gainpro | BritishVirginIslands | BritishVirginIslands | Investmentholding | USD1.00 | - | 76.47 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenJinyuRongtaiInvestmentDevelopmentCo.,Ltd. | PRC | PRC | Leaseofpropertyetc. | 80,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ShenzhenMerchantsQianhaiwanRealEstateCo.,Ltd. | PRC | PRC | Leaseofpropertyetc. | 20,000.00 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
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VII.EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(1)CompositionoftheGroup-continued
| Nameofthesubsidiary | Principalplaceofbusiness | Placeofincorporation | Natureofbusiness | Registeredcapital(RMB'0000,unlessotherwisespecified) | Proportionofownershipinterest(%) | Acquisitionmethod | |
| Direct | Indirect | ||||||
| ShantouPort | PRC | PRC | Logisticssupportservices | 12,500.00 | - | 60.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| HambantotaInternationalPortGroup(Private)Limited | SriLanka | SriLanka | Logisticssupportservices | USD794,000,000 | - | 85.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| ChinaMerchantsHoldings(Djibouti)FZE | Djibouti | Djibouti | Logisticssupportservices | USD38,140,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| XindaResourcesLimited("Xinda") | BritishVirginIslands | BritishVirginIslands | Investmentholding | USD107,620,000 | - | 77.45 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| KongRiseDevelopmentLimited | HongKong,PRC | HongKong,PRC | Investmentholding | USD107,620,000 | - | 100.00 | Businesscombinationinvolvingenterprisesundercommoncontrol |
| TCP | Brazil | Brazil | Logisticssupportservices | BRL68,851,600 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPort | PRC | PRC | Logisticssupportservices | 587,420.91 | 30.78 | 27.58 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortInternationalContainerTerminalCo.,Ltd | PRC | PRC | Logisticssupportservices | 60,000.00 | - | 80.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortPetrochemicalTerminalCo.,Ltd. | PRC | PRC | Logisticssupportservices | 18,000.00 | - | 50.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ChinaOceanShippingTallyCo.,Ltd.,Zhanjiang | PRC | PRC | Logisticssupportservices | 300.00 | - | 84.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortDonghaidaoBulkCargoTerminalCo.,Ltd. | PRC | PRC | Logisticssupportservices | 5,000.00 | - | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ZhanjiangPortBondedServiceCo.,Ltd.,Guangdong | PRC | PRC | Logisticssupportservices | 300.00 | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol | |
| GuangdongZhanjiangPortLogisticsCo.,Ltd. | Shantou,PRC | Shantou,PRC | Logisticssupportservices | 10,000.00 | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol | |
| ZhanjiangPortHaichuanTradingCo.,Ltd. | HongKong,PRC | HongKong,PRC | Logisticssupportservices | 200.00 | 100.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol | |
| NingboDaxie | PRC | PRC | Logisticssupportservices | 1,20,909.00 | - | 45.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
| ShantouSeaportTugboatServiceCo.LTD | PRC | PRC | Logisticssupportservices | 1,000.00 | - | 100.00 | Investmentestablishment |
| GuangdongZhanjiangPortLongtengShippingCo.LTD | PRC | PRC | Logisticssupportservices | 9,000.00 | - | 70.00 | Businesscombinationnotinvolvingenterprisesundercommoncontrol |
Note1:On19June2018,theCompanyandChinaMerchantsGroup(HongKong)Co.,Ltd.
("CMHK")enteredinto"AgreementofConcertedActiononChinaMerchantsPortHoldingsCompanyLimited".Accordingtotheagreement,CMHKunconditionallykeepsconsistentwiththeCompanywhenvotingforthemattersdiscussedatthegeneralshareholdersmeetingofCMPortinrespectofitsvotingpowerofCMPortasentrusted,andperformsthevotingaspertheCompany'sopinion.InJulyandOctober2020,CMPortrespectivelydistributed2019dividendsand2020interimdividendstoshareholders.Theshareholdersmayselecttoreceivealldividendsincash,alldividendsinlieuofshares,orpartcashandpartnewshares.TheCompanyselecttoreceiveallitsshareofdividendsfromtheshareholdinginCMPortintheformofscripdividends.UponthecompletionofabovedistributionofCMPort,theCompany'sshareinCMPortincreasedfrom1,411,014,033sharesto1,532,248,957shares,accountingfor
41.85%(previously40.91%)ofthetotalissuedsharesofCMPort.TheproportionofsharesheldbyCMHKchangedfrom21.86%to22.36%.Therefore,theCompanyhastotal
64.21%votingpowerofCMPortandhascontroloverCMPort.
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VII.EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(1)CompositionoftheGroup-continuedNote2:TheGroupandChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.enteredinto
"EquityCustodyAgreement",accordingtowhichChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.entrustedits29%equityofZCMGtotheGroupforoperationandmanagement.Therefore,theGrouphas60%votingpowerofZCMGandincludesitinthescopeofconsolidatedfinancialstatements.Note3:On18December2020,TheCompanyhassignedtheAgreementonEquitySubscription
andCapitalIncreasewiththecompany'ssubsidiaries,ChinaMerchantsBureauPort,CMIT,CentralizedLogistics,DagangJikeandYingkouPortGroupCo.,LTD.(hereinafterreferredtoas"YingkouPortGroup").PursuanttotheEquitySubscriptionandCapitalIncreaseAgreement,CentralizedLogisticsandDalianPortContainerincreasedthecapitalofChinaMerchantsInternationalInformationwiththeir29.40%and49.63%sharesofDPNrespectively,andYingkouPortGroupincreasedthecapitalofCMITwiththeir100%sharesofGangxinTechnology.Beforeandafterthemerger,CMIT,DPNandGangxinTechnologyarefinallycontrolledbyChinaMerchantsGroup,theactualcontrolleroftheCompany,andthecontrolisnottemporary.Theabovecapitalincreasewascompletedon9February2021.Afterthecapitalincrease,theCompany,ChinaMerchantsPort,CentralizedLogistics,DalianPortContainerandYingkouPortGroupwillhold13.18%,43.74%,13.26%,22.38%and7.44%oftheequityofCMITrespectively.CMITisstilltheholdingsubsidiaryoftheCompany.CMITholds79.03%oftheequityofDPNand100%oftheequityofGangxinTechnologyrespectively,havingcontroloverDPNandGangxinTechnology.Therefore,from9February2021,theCompanyincorporatedDPNandGangxinTechnologyintotheconsolidationscopeoftheCompany'sconsolidatedfinancialstatementswithreferencetotheaccountingtreatmentmethodofbusinesscombinationunderthesamecontrolfromthecommencementofthecomparativefinancialstatements.
(2)Materialnon-wholly-ownedsubsidiaries
Unit:RMB
| Nameofthesubsidiary | Proportionofownershipinterestheldbytheminorityshareholders(%) | Profitorlossattributabletominorityshareholdersinthecurrentperiod | Dividendsdistributedtominorityshareholdersinthecurrentperiod | Balanceofminorityinterestsattheendoftheperiod |
| CMPort | 58.15 | 2,476,386,276.83 | 37,396,166.19 | 64,514,311,015.53 |
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VII.EQUITYINOTHERENTITIES-continued
1.Interestsinsubsidiaries-continued
(3)Significantfinancialinformationofmaterialnon-wholly-ownedsubsidiaries
Unit:RMB
| Nameofthesubsidiary | Closingbalance | Openingbalance | ||||||||||
| Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | Currentassets | Non-currentassets | Totalassets | Currentliabilities | Non-currentliabilities | Totalliabilities | |
| CMPort | 13,768,207,634.06 | 126,273,716,131.40 | 140,041,923,765.46 | 16,191,755,983.64 | 28,652,722,348.85 | 44,844,478,332.49 | 14,625,774,694.50 | 125,425,081,030.94 | 140,050,855,725.44 | 13,055,907,214.63 | 34,087,468,137.34 | 47,143,375,351.97 |
Unit:RMB
| Nameofthesubsidiary | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | ||||||
| Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | Operatingincome | Netprofit | Totalcomprehensiveincome | Cashflowsfromoperatingactivities | |
| CMPort | 4,722,661,879.99 | 3,924,079,558.91 | 3,595,625,905.94 | 2,188,410,312.61 | 3,692,963,958.88 | 1,592,920,984.37 | 515,475,406.96 | 1,499,234,240.53 |
2.Transactionsresultinginchangesinownershipinterestsinsubsidiarieswithoutlosingcontroloverthesubsidiaries
(1)DescriptionofchangesinownershipinterestsinsubsidiariesSeeNoteVII1(1)fordetails.
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VII.EQUITYINOTHERENTITIES-continued
2.Transactionsresultinginchangesinownershipinterestsinsubsidiarieswithout
losingcontroloverthesubsidiaries-continued
(2)Effectoftransactiononminorityinterestsandowner'sequityattributabletotheparent
company
Unit:RMB
| ITEM | CMIT |
| Purchasecost | |
| -Cash | - |
| -Non-cashassets | 21,722,727.15 |
| Totalpurchasecost | 21,722,727.15 |
| Less:Shareofnetassetsofsubsidiariescalculatedaccordingtotheproportionofequityacquired | 22,868,105.53 |
| Difference | 1,145,378.38 |
| Including:Adjustedcapitalreserve | -1,145,378.38 |
| Adjustedsurplusreserve | - |
| Adjustedundistributedprofit | - |
3.Interestsinjointventuresandassociates
(1)Materialjointventuresorassociates
Unit:RMB
| Investee | Principalplaceofbusiness | Placeofregistration | Natureofbusiness | ProportionofownershipinterestsheldbytheGroup(%) | Accountingmethodofinvestmentsinassociates | |
| Direct | Indirect | |||||
| Associates | ||||||
| ShanghaiInternationalPort(Group)Co.,Ltd. | Shanghai,PRC | Shanghai,PRC | Portandcontainerterminalbusiness | - | 26.77 | Equitymethod |
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VII.EQUITYINOTHERENTITIES-continued
4.Keyfinancialinformationofmaterialassociates
Unit:RMB
| Item | ShanghaiInternationalPort(Group)Co.,Ltd. | |
| Closingbalance/Amountincurredinthecurrentperiod | Openingbalance/Amountincurredinthepriorperiod | |
| Currentassets | 50,383,167,725.32 | 43,653,716,114.59 |
| Including:Cashandcashequivalents | 27,069,666,009.09 | 20,689,734,592.59 |
| Non-currentassets | 115,544,815,823.74 | 112,271,033,861.93 |
| Totalassets | 165,927,983,549.06 | 155,924,749,976.52 |
| Currentliabilities | 28,832,997,784.13 | 22,405,787,626.17 |
| Non-currentliabilities | 35,421,996,922.32 | 37,539,362,699.55 |
| Totalliabilities | 64,254,994,706.45 | 59,945,150,325.72 |
| Minorityinterests | 8,617,160,541.88 | 8,461,734,212.94 |
| Equityattributabletoshareholdersoftheparentcompany | 93,055,828,300.73 | 87,517,865,437.86 |
| Shareofnetassetscalculatedbasedontheproportionofownershipinterests | 24,911,045,236.11 | 23,428,532,577.72 |
| Adjustments | - | - |
| -Goodwill | 2,076,585,747.12 | 2,076,585,747.12 |
| -Others | -149,563,344.83 | -143,335,143.43 |
| Carryingamountsofequityinvestmentsinassociates | 26,838,067,638.40 | 25,361,783,181.41 |
| Fairvalueofpubliclyquotedequityinvestmentsinassociates | 29,586,221,627.22 | 28,345,709,190.02 |
| Operatingincome | 17,362,678,537.04 | 12,038,672,650.45 |
| Netprofit | 9,168,282,128.06 | 4,328,854,036.44 |
| Othercomprehensiveincome | -8,803,490.60 | 195,337,471.93 |
| Totalcomprehensiveincome | 9,159,478,637.46 | 4,524,191,508.37 |
| Dividendsreceivedfromassociatesinthecurrentyear | 793,927,959.22 | 899,371,516.97 |
5.Summarizedfinancialinformationofimmaterialassociatesandjointventures
Unit:RMB
| Closingbalance/Amountincurredinthecurrentperiod | Openingbalance/Amountincurredinthepriorperiod | |
| Jointventures: | ||
| Totalcarryingamountofinvestments | 8,855,932,238.43 | 8,866,327,205.84 |
| Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest | - | - |
| -Netprofit | 95,037,172.93 | 177,436,875.24 |
| -Othercomprehensiveincome | - | - |
| -Totalcomprehensiveincome | 95,037,172.93 | 177,436,875.24 |
| Associates: | ||
| Totalcarryingamountofinvestments | 31,735,276,355.12 | 32,014,300,835.65 |
| Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest | - | - |
| -Netprofit | 1,134,394,012.10 | 194,518,871.83 |
| -Othercomprehensiveincome | -53,669,400.39 | -23,400,026.46 |
| -Totalcomprehensiveincome | 1,080,724,611.71 | 171,118,845.37 |
6.TheinvesteeswheretheGroupholdslong-termequityinvestmentsarenotrestricted
totransferfundstotheGroup.
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VIII.RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS
TheGroup'smajorfinancialinstrumentsincludecashandbankbalances,notesreceivable,accountreceivables,otherreceivables,long-termreceivables,otherequityinstrumentinvestments,othernon-currentfinancialassets,short-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayable,long-termpayablesetc.DetailsofthesefinancialinstrumentsaredisclosedinNotes(V).Therisksassociatedwiththesefinancialinstrumentsandthepoliciesonhowtomitigatetheserisksaresetoutbelow.Managementmanagesandmonitorstheseexposurestoensuretherisksaremonitoredatacertainlevel.TheGroupadoptssensitivityanalysistechniquestoanalyzehowtheentity'sprofitorlossandfortheperiodandshareholders'equitywouldhavebeenaffectedbychangesintherelevantriskvariablesthatwerereasonablypossible.Asitisunlikelythatriskvariableswillchangeinanisolatedmanner,andtheinterdependencebetweenriskvariableswillhavesignificanteffectontheamountultimatelyinfluencedbythechangesinasingleriskvariable,thefollowingitemsarebasedontheassumptionthateachriskvariablehaschangesonastand-alonebasis.
1.RiskmanagementobjectivesandpoliciesTheGroup'sriskmanagementobjectivesaretoachieveproperbalancebetweenrisksandyield,minimizetheadverseimpactsofrisksontheGroup'soperationperformance,andmaximizethebenefitsoftheshareholdersandotherequityinvestors.Basedontheseriskmanagementobjectives,theGroup'sbasicriskmanagementstrategyistoidentifyandanalyzetheindustry'sexposuretovariousrisks,establishappropriatebottomlineforrisktolerance,implementriskmanagement,andmonitorstheseexposurestoensuretherisksaremonitoredatacertainlevel.
1.1Marketrisk
1.1.1CurrencyriskCurrencyriskistheriskthatlosseswilloccurbecauseofchangesinforeignexchangerates.TheGroup'sexposuretothecurrencyriskisprimarilyassociatedwithHKD,USDandEUR.Exceptforpartofthepurchasesandsales,theGroup'sotherprincipalactivitiesaredenominatedandsettledinRMB.Asat30June2021,thebalanceoftheGroup'sassetsandliabilitiesarebothdenominatedinfunctionalcurrency,exceptthattheassetsandliabilitiessetoutbelowarerecordedusingforeigncurrency.CurrencyriskarisingfromtheforeigncurrencybalanceofassetsandliabilitiesmayhaveimpactontheGroup'sperformance.
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Cashandbankbalances | 430,937,716.00 | 1,214,901,554.08 |
| Accountsreceivable | 24,614,419.21 | 34,261,643.29 |
| Otherreceivables | 512,277,923.68 | 1,004,843,484.23 |
| Short-termborrowings | 995,081,600.00 | 668,320,000.00 |
| Accountspayable | 7,542,828.12 | 4,286,809.14 |
| Otherpayables | 133,239,925.15 | 201,395,071.52 |
| Non-currentliabilitiesduewithinoneyear | 2,523,780,136.99 | 382,131,909.25 |
| Long-termborrowings | 670,000,000.00 | 670,000,000.00 |
| Bondspayable | - | 2,500,000,000.00 |
| Long-termpayables | 1,975,705.16 | 440,659,667.97 |
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VIII.RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued
1.Riskmanagementobjectivesandpolicies-continued
1.1Marketrisk-continued
1.1.1Currencyrisk-continuedTheGroupcloselymonitorstheeffectsofchangesintheforeignexchangeratesontheGroup'scurrencyriskexposures.Accordingtothecurrentriskexposureandjudgmentoftheexchangeratemovements,managementconsidersitisunlikelythattheexchangeratechangesinthefutureoneyearwillresultinsignificantlosstotheGroup.SensitivityanalysisoncurrencyriskTheassumptionforthesensitivityanalysisoncurrencyriskisthatallthecashflowhedgesandhedgesofanetinvestmentinaforeignoperationarehighlyeffective.Onthebasisoftheaboveassumption,whereallothervariablesareheldconstant,thereasonablypossiblechangesintheforeignexchangeratemayhavethefollowingpre-taxeffectontheprofitorlossfortheperiodandshareholders'equity:
Unit:RMB
| Item | Changesinexchangerate | Thecurrentperiod | Thepriorperiod | ||
| Effectonprofits | Effectonshareholders'equity | Effectonprofits | Effectonshareholders'equity | ||
| Allforeigncurrencies | 5%increaseagainstRMB | -37,283,559.46 | -37,283,559.46 | -21,788,739.77 | -21,788,739.77 |
| Allforeigncurrencies | 5%decreaseagainstRMB | 37,283,559.46 | 37,283,559.46 | 21,788,739.77 | 21,788,739.77 |
| Allforeigncurrencies | 5%increaseagainstUSD | 1,204,140.69 | 1,204,140.69 | 1,832,900.68 | 1,832,900.68 |
| Allforeigncurrencies | 5%decreaseagainstUSD | -1,204,140.69 | -1,204,140.69 | -1,832,900.68 | -1,832,900.68 |
| Allforeigncurrencies | 5%increaseagainstHKD | -161,772,050.17 | -161,772,050.17 | -247,590,042.34 | -247,590,042.34 |
| Allforeigncurrencies | 5%decreaseagainstHKD | -161,772,050.17 | -161,772,050.17 | 247,590,042.34 | 247,590,042.34 |
| Allforeigncurrencies | 5%increaseagainstFCFA | 29,661,962.11 | 29,661,962.11 | -59,525,285.86 | -59,525,285.86 |
| Allforeigncurrencies | 5%decreaseagainstFCFA | -29,661,962.11 | -29,661,962.11 | 59,525,285.86 | 59,525,285.86 |
1.1.2Interestraterisk-changesincashflowsRiskofchangesincashflowsoffinancialinstrumentsarisingfrominterestratechangesismainlyrelatedtobankloanswithfloatinginterestrate.(SeeNote(V)26andNote(V)36).TheGroupcontinuouslyandcloselymonitorstheimpactofinterestratechangesontheGroup'sinterestraterisk.TheGroup'spolicyistomaintaintheseborrowingsatfloatingrates.Presently,theGrouphasnoarrangementsuchasinterestrateswapsetc.
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VIII.RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued
1.Riskmanagementobjectivesandpolicies-continued
1.1Marketrisk-continued
1.1.2Interestraterisk-changesincashflows-continuedSensitivityanalysisofinterestrateriskSensitivityanalysisofinterestrateriskisbasedonthefollowingassumptions:
?Fluctuationsofmarketinterestratecanaffecttheinterestincomeorexpenseofafinancial
instrumentwithfloatinginterestrate;?Forafinancialinstrumentatfairvaluewithfixedinterestrate,thefluctuationsofmarketinterest
ratecanonlyaffectitsinterestincomeorexpense;?Foraderivativefinancialinstrumentdesignatedashedginginstrument,thefluctuationsofmarket
interestrateaffectsitsfairvalue,andallinterestratehedgingareexpectedtobehighlyeffective;?Thechangesinfairvalueofderivativefinancialinstrumentsandotherfinancialassetsand
liabilitiesarecalculatedusingcashflowdiscountingmethodbyapplyingthemarketinterestrateat
balancesheetdate.Onthebasisofaboveassumptions,wheretheothervariablesheldconstant,thepre-taxeffectofpossibleandreasonablechangesininterestrateontheprofitorlossfortheperiodandshareholders'equityareasfollows:
Unit:RMB
| Item | Changesininterestrate | Thecurrentperiod | Thepriorperiod | ||
| Effectonprofits | Effectonshareholders'equity | Effectonprofits | Effectonshareholders'equity | ||
| Short-termborrowingsandlong-termborrowings | 1%increase | -103,396,518.44 | -103,396,518.44 | -145,999,335.58 | -145,999,335.58 |
| Short-termborrowingsandlong-termborrowings | 1%decrease | 103,396,518.44 | 103,396,518.44 | 145,999,335.58 | 145,999,335.58 |
1.1.3OtherpriceriskTheGroup'spriceriskismainlyarisingfromheld-for-tradingequityinstrumentinvestmentsandotherequityinstrumentinvestments.TheGroupreducesthepriceriskofequityinstrumentinvestmentsbyholdingportfolioofmultipleequitysecurities.
1.2CreditriskAsat30June2021,theGroup'smaximumexposuretocreditriskwhichwillcauseafinanciallosstotheGroupduetofailuretodischargeanobligationbythecounterpartiesandfinancialguaranteesissuedbytheGroupisarisingfromthecarryingamountoftherespectivefinancialassetsrecognizedintheconsolidatedbalancesheet.Forfinancialinstrumentsmeasuredatfairvalue,thecarryingamountreflectstheexposuretorisksbutnotthemaximumexposuretorisks;themaximumexposuretoriskswouldvaryaccordingtothefuturechangesinfairvalue.
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VIII.RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued
1.Riskmanagementobjectivesandpolicies-continued
1.2Creditrisk-continuedInordertominimizethecreditrisk,theGrouphasdelegatedateamresponsiblefordeterminationofcreditlimits,creditapprovalsandothermonitoringprocedurestoensurethatfollow-upactionistakentorecoveroverduedebts.Inaddition,theGroupreviewstherecoverableamountoffinancialassetsateachbalancesheetdatetoensurethatadequateimpairmentlossesaremadeforirrecoverableamounts.Inthisregard,themanagementoftheGroupconsidersthattheGroup'screditriskissignificantlyreduced.Thecreditriskonliquidfundsislimitedbecausetheyaredepositedwithbankswithhighcreditratings.TheGrouphasadoptedapolicytoensurethatallsalescustomershavegoodcreditrecords.TheGroup'sriskexposurespreadsoveranumberofcounterpartiesandcustomers,thereforetheGrouphasnosignificantconcentrationofcreditrisk.At30June2021,thebalanceofaccountsreceivablefromtopfiveentitiesisRMB460,789,341.84(31December2020:
RMB446,519,920.68),accountingfor23.88%(31December2020:30.40%)oftheGroup'saccountsreceivable.Inaddition,theGrouphasnoothersignificantcreditriskexposureconcentratedonsinglefinancialassetorportfoliooffinancialassetswithsimilarcharacteristics.
1.3LiquidityriskInthemanagementoftheliquidityrisk,theGroupmonitorsandmaintainsalevelofcashandcashequivalentsdeemedadequatebythemanagementtofinancetheGroup'soperationsandmitigatetheeffectsoffluctuationsincashflows.Themanagementmonitorstheutilizationofbankborrowingsandensurescompliancewithloancovenants.Fortheperiodfrom1Januaryto30June2021,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsofRMB4,988,808,531.03.Asat30June2021,theGrouphasavailableunutilizedloanfacilityofRMB44,924,971,453.51whichismorethancurrentliabilities.Therefore,theGroup'smanagementbelievesthattheGrouphasnosignificantliquidityrisk.ThefollowingisthematurityanalysisforfinancialassetsandfinancialliabilitiesheldbytheGroupwhichisbasedonundiscountedremainingcontractualobligations:
Unit:RMB
| Item | Carryingamount | Grossamount | Within1year | 1to5years | Over5years |
| Short-termborrowings | 4,918,709,603.87 | 4,962,866,633.77 | 4,962,866,633.77 | - | - |
| Notespayable | 10,456,401.57 | 10,456,401.57 | 10,456,401.57 | - | - |
| Accountspayable | 745,241,136.72 | 745,241,136.72 | 745,241,136.72 | - | - |
| Otherpayables | 3,866,179,811.31 | 3,866,179,811.31 | 3,866,179,811.31 | - | - |
| Non-currentliabilitiesduewithinoneyear | 8,743,691,405.73 | 8,937,632,106.24 | 8,937,632,106.24 | - | - |
| Othercurrentliabilities | 2,165,517,831.24 | 2,182,300,365.49 | 2,182,300,365.49 | - | - |
| Long-termborrowings | 7,334,778,282.88 | 8,305,161,723.96 | - | 6,424,712,248.76 | 1,880,449,475.20 |
| Bondspayable | 17,283,407,358.74 | 17,369,182,093.23 | - | 13,496,709,846.86 | 3,872,472,246.37 |
| Leaseliabilities | 1,222,109,735.26 | 1,909,998,378.59 | - | 668,177,905.72 | 1,241,820,472.87 |
| Long-termpayables | 1,177,539,049.89 | 1,274,621,660.09 | - | 26,880,639.26 | 1,247,741,020.83 |
| Othernon-currentliabilities | 3,364,055,291.80 | 3,364,055,291.80 | - | 258,175,401.59 | 3,105,879,890.21 |
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IX.DISCLOSUREOFFAIRVALUE
1.Closingbalanceofassetsandliabilitiesmeasuredatfairvalue
Unit:RMB
| Item | Fairvalueatclosingbalance | |||
| Level1 | Level2 | Level3 | Total | |
| Measurementsatfairvaluecontinuously | ||||
| Held-for-tradingfinancialassets | 173,287.80 | 1,000,000,000.00 | - | 1,000,173,287.80 |
| Accountsreceivablefinancing | - | 272,889,319.83 | - | 272,889,319.83 |
| Otherequityinstrumentinvestments | 11,336,800.00 | - | 170,680,257.74 | 182,017,057.74 |
| Othernon-currentfinancialassets | 839,486,772.90 | - | 24,422,312.79 | 863,909,085.69 |
| Totalassetsmeasuredatfairvaluecontinuously | 850,996,860.70 | 1,272,889,319.83 | 195,102,570.53 | 2,318,988,751.06 |
| Othernon-currentliabilities | - | - | 3,438,158,858.69 | 3,438,158,858.69 |
| Totalliabilitiesmeasuredatfairvaluecontinuously | - | - | 3,438,158,858.69 | 3,438,158,858.69 |
2.Basisfordeterminingthemarketpriceofitemscontinuouslymeasuredatlevel1fair
valueThemarketpricesofheld-for-tradingfinancialassets,otherequityinstrumentinvestmentsandothernon-currentfinancialassetsaredeterminedattheclosingpriceoftheequityinstrumentatShanghaiStockExchangeandHongKongStockExchangeat30June2021.
3.Qualitativeandquantitativeinformationofvaluationtechniquesandkeyparameters
adoptedforitemscontinuouslymeasuredatlevel2fairvalue
Unit:RMB
| Item | Fairvalueattheendoftheperiod | Valuationtechniques | Inputs |
| Accountsreceivablefinancing | 272,889,319.83 | Cashflowdiscounting | Discountrate |
| Held-for-tradingfinancialassets | 1,000,000,000.00 | Cashflowdiscounting | Discountrate |
Duringthevaluation,theGroupneedstomakeestimatesinrespectofmarketvolatilityandrelevanceetc.,selectappropriatediscountrateandtakeintoconsiderationofadjustmentofdiscountandpremium.
4.Qualitativeandquantitativeinformationofvaluationtechniquesandkeyparameters
adoptedforitemscontinuouslymeasuredatlevel3fairvalue
Unit:RMB
| Item | Fairvalueattheendoftheperiod | Valuationtechniques | Inputs |
| Otherequityinstrumentinvestments | 170,680,257.74 | Networthmethod | Carryingamount |
| Othernon-currentfinancialassets | 2,000,000.00 | Cashflowdiscounting | Discountrate |
| Othernon-currentfinancialassets | 667,822.80 | Networthmethod | Carryingamount |
| Othernon-currentfinancialassets | 21,754,489.99 | Listedcompanycomparisonapproach | Shareprice |
| Othernon-currentliabilities | 3,438,158,858.69 | Cashflowdiscounting | Discountrate |
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IX.DISCLOSUREOFFAIRVALUE-continued
4.Qualitativeandquantitativeinformationofvaluationtechniquesandkeyparameters
adoptedforitemscontinuouslymeasuredatlevel3fairvalue-continuedThefairvalueofnon-listedequityinstrumentsincludedinequityinstrumentsatfairvaluethroughprofitorlossorothercomprehensiveincomeisdeterminedusingthevaluationtechniquessuchascashflowdiscountingmethod,networthmethod,listedcompanycomparisonapproachetc.Duringthevaluation,theGroupneedstomakeestimatesinrespectofthefuturecashflows,creditrisk,marketvolatilityandrelevanceetc.,selectappropriatediscountrateandtakeintoconsiderationofadjustmentofdiscountandpremium.
5.FairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalueThefinancialassetsandliabilitiesnotmeasuredatfairvaluemainlyinclude:notesreceivable,accountsreceivable,otherreceivables,short-termborrowings,notespayable,accountspayable,otherpayables,long-termborrowings,bondspayableandlong-termpayablesetc.TheGroup'smanagementbelievesthatthecarryingamountsoffinancialassetsandfinancialliabilitiesatamortizedcostinthefinancialstatementsapproximatetheirfairvalues.Thefairvalueofbondspayabletradedinactivemarketisdeterminedatthequotedpriceintheactivemarket.Thefairvaluesoflong-termborrowings,long-termpayablesandbondspayablenottradedinactivemarketaredeterminedatthepresentvalueofcontractualfuturecashflowsdiscountedusingtheinterestrateforprovidingnearlythesamecashflowstoentitywithcomparablecreditratingunderthesameconditions.X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS
1.ParentoftheCompany
| Nameoftheparent | Relatedpartyrelationship | Typeoftheentity | Placeofregistration | Legalrepresentative | Natureofbusiness | Issuedsharecapital | ProportionoftheCompany'sownershipinterestsheldbytheparent(%) | ProportionoftheCompany'svotingpowerheldbytheparent(%) |
| BroadfordGlobalLimited | Parentcompany | Privatelimitedcompany(sharelimited) | HongKong | DengWeidong | Investmentholding | HKD21,120,986,262 | 2.88 | 81.92（Note) |
Note:BroadfordGlobalLimiteddirectlyholds2.88%equityoftheCompany,andindirectly
holds19.29%and59.75%equityoftheCompanythroughthesubsidiariesChina
MerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.andChinaMerchantsPort
InvestmentandDevelopmentCo.,LTD.(formerlyknownasChinaMerchantsInvestment
andDevelopmentCo.,LTD.)respectively.
TheultimatecontrollingshareholderoftheCompanyisChinaMerchantsGroup.
2.SubsidiariesoftheCompanyDetailsofthesubsidiariesoftheCompanyaresetoutinNote(VII)1.
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X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
3.AssociatesandjointventuresoftheCompanyDetailsoftheCompany'ssignificantjointventuresandassociatesaresetoutinNote(VII)3.OtherjointventuresorjointventuresthatoccurredrelatedpartytransactionsandformedbalanceswiththeGroupthisyearareasfollows:
| Nameofjointventureorassociate | RelationshipwiththeCompany |
| PortofNewcastleanditssubsidiaries | Jointventure |
| GuizhouEastLandPortOperationCo.,Ltd. | Jointventure |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Jointventure |
| QingdaoQianwanNewUnitedContainerTerminalCo.,Ltd. | Jointventure |
| ChinaMerchantsAntongLogisticsManagementCo.,LTD | Jointventure |
| ChinaZhanjiangoceanShippingAgencyCo.LTD | Jointventure |
| YantaiPortGroupLaizhouPortCo.LTD | Jointventure |
| ZhanjiangCoscoShippingLogisticsCo.LTD | Jointventure |
| QingdaoQianwanUnitedContainerTerminalCo.LTD | Jointventure |
| GreatHornDevelopmentCompanyFZCO | Associate |
| InternationalDjiboutiIndustrialParksOperationFZCO | Associate |
| PortDeDjiboutiS.A. | Associate |
| TerminalLinkSAS | Associate |
| Tin-CanIslandContainerTerminalLtd | Associate |
| GuizhouQiandongnanContinentalLandPortOperationCo.,Ltd. | Associate |
| NanshanGroupanditssubsidiaries | Associate |
| ShanghaiInternationalPort(Group)Co.,Ltd. | Associate |
| ShenzhenBaohongTechnologyCo.,LTD | Associate |
| TianjinHaitianBondedLogisticsCo.,Ltd. | Associate |
| ZhanjiangMerchantsPortCityInvestmentCo.,LTD | Associate |
| ZhanjiangXiagangJointDevelopmentCo.,LTD | Associate |
| PearlRiverInlandCargoTerminalCo.LTD | Associate |
| ShantouZhongliantallyCo.,LTD | Associate |
| ShantouInternationalContainerTerminalsCo.LTD | Associate |
| ShenzhenWandianIndustrialCo.,LTD | Associate |
| LiaoningPortCo.LTD | Associate |
| NingboZhoushanPortCo.,LTD("NingboZhoushan") | Associate |
| DoralehMulti-purposePort | Associate |
| ShenzhenChiwanOrientalLogisticsCo.,LTD | Associate |
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X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
4.OtherrelatedpartiesoftheCompany
| Nameofotherrelatedparties | RelationshipwiththeCompany |
| SriLankaPortsAuthority | Minorityshareholdersofsubsidiaries |
| ZhanjiangInfrastructure | Minorityshareholdersofsubsidiaries |
| ZhoushanBlueSeaInvestmentCo.,LTD | Minorityshareholdersofsubsidiaries |
| AntongHoldingsanditssubsidiaries(Note) | Connectedperson |
| ChinaCOSCOShippingGroupanditssubsidiaries(Note) | Connectedperson |
| GuangdongSinotransshippingAgencyCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| Haitong(Shanghai)TradingCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| SouthChinaSinotransSupplyChainManagementCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| EurasiashipyardEnterpriseCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| QingdaoBondedLogisticsParkSinotransStoragelogisticsCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| QingdaoSinotransSupplyChainManagementCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenForwarderStorageCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenSouthernOil(Group)Co.LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenQianhaiSinotransSupplyChainManagementCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenWestPortSecurityServiceCompany | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenMerchantsInternationalShippingAgencyCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenMerchantsRealEstateCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenMerchantsrollertransportationCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenMerchantInvestmentCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenMerchantsPropertyManagementCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenSinotransshippingAgencyCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| YoulianShipyard(Shekou)Co.,LTD | Controlledbythesameultimatecontrollingshareholder |
| YoulianshipyardCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsHaidaInsuranceConsultantCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsInternationalColdChain(Shenzhen)Co.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsGroupFinanceCo.LTD | Controlledbythesameultimatecontrollingshareholder |
-131-
X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
4.OtherrelatedpartiesoftheCompany-continued
| Nameofotherrelatedparties | RelationshipwiththeCompany |
| ChinaMerchantsPortInvestmentandDevelopmentCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsRenheLifeInsuranceCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsFinanceleasing(Tianjin)Co.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsFood(China)Co.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsTradeFinanceleasingCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsLogisticsGroupQingdaoCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsZhangzhouDevelopmentZonePowerSupplyCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaCommunicationsImportandExportCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| GuangdongSinotransShippingCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| SinotransContainerTransportationCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsSecuritiesCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| YingkouGangrongBigDataCo.,LTD | Controlledbythesameultimatecontrollingshareholder |
| Sinotrans(HongKong)ShippingCompanylimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaShenzhenOceanShippingAgencyCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| NingboShippingAgencyCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| HaitongKechuang(Shenzhen)Co.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsHeavyIndustries(Jiangsu)Co.LTD | Controlledbythesameultimatecontrollingshareholder |
| SinotransContainerTransport(HongKong)Co.,LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchants(Liaoning)PortDevelopmentCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| YingkouPortGroup | Controlledbythesameultimatecontrollingshareholder |
| LiaoningPortGroupCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaYangtzeRiverSteamshipCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ShenzhenForwarderInternationalfreightco.,LTD | Controlledbythesameultimatecontrollingshareholder |
| SinotransSouthChinaCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,LTD | Controlledbythesameultimatecontrollingshareholder |
-132-
X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
4.OtherrelatedpartiesoftheCompany-continued
| Nameofotherrelatedparties | RelationshipwiththeCompany |
| SinotransShippingCo.LTD | Controlledbythesameultimatecontrollingshareholder |
| OrientureHoldingsCompanyLimited | Controlledbythesameultimatecontrollingshareholder |
| ChinaMerchantsFinanceleasing(Shanghai)Co.,LTD | Controlledbythesameultimatecontrollingshareholder |
| KhorAmbadoFZCo | Wheretheultimatecontrollingshareholderhassignificantinfluence |
| ChinaMerchantBankCo.,Ltd. | Wheretheultimatecontrollingshareholderhassignificantinfluence |
| ChinaMerchantsUnitedDevelopmentCo.LTD | Wheretheultimatecontrollingshareholderhassignificantinfluence |
Note:TheCompany'sformerchairmanFuGangfengresignedasthechairmanoftheCompany
on31January2020,andbecamethedirector,generalmanagerofChinaCOSCOShippingCorporationLimitedwithin12monthsafterhisresignastheCompany'schairman.AccordingtotheRulesGoverningtheListingofSharesonShenzhenStockExchange,ChinaCOSCOShippingCorporationLimitedisarelatedpartyoftheCompany;from1January2021to30June2021,theCompany'sdeputygeneralmanagerZhengShaopingworkasthedirectoroftheCompanyandthechairmanofAntongHoldingsCo.,Ltd.Therefore,therelatedpartytransactionsandbalancesfortheperiodandwithin12monthsaftertheperiodinwhichtheaforesaidtwopersonswerethedirector,seniormanagementpersonnelofChinaCOSCOShippingCorporationLimitedandAntongHoldingsCo.,Ltd.aredisclosed.
-133-
X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions
(1)Renderingandreceiptofservice
Unit:RMB
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Receiptofservice: | ||||
| ShenzhenWandianIndustrialCo.,Ltd. | Serviceexpenditure | Negotiation | 23,540,775.37 | - |
| HoiTung(Shanghai)CompanyLimited | Serviceexpenditure | Negotiation | 8,531,341.56 | 1,075,389.11 |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Serviceexpenditure | Negotiation | 7,456,011.20 | 7,457,789.57 |
| ShenzhenWestPortSecurityServiceCompany | Serviceexpenditure | Negotiation | 4,195,429.30 | - |
| YiuLianDockyardsLimited | Serviceexpenditure | Negotiation | 3,623,433.09 | 4,313,298.43 |
| ShenzhenChinaMerchantsPropertyManagementCo.,Ltd. | Serviceexpenditure | Negotiation | 2,679,300.52 | 3,753,910.42 |
| ShenzhenChiwanOrientalLogisticsCo.,Ltd. | Serviceexpenditure | Negotiation | 2,332,826.73 | - |
| ChinaNanshanDevelopment(Group)Incorporation | Serviceexpenditure | Negotiation | 2,229,485.70 | 21,754,790.42 |
| ChinaMerchantsZhangzhouDevelopmentZonePowerSupplyCo.,Ltd. | Serviceexpenditure | Negotiation | 2,166,324.95 | 1,902,146.11 |
| YingkouPortGroupCo.,Ltd. | Serviceexpenditure | Negotiation | 1,691,743.27 | - |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.,Ltd. | Serviceexpenditure | Negotiation | 1,559,726.18 | - |
| GuangdongSinotransShippingCo.,Ltd. | Serviceexpenditure | Negotiation | 1,542,016.89 | 764,449.65 |
| ChinaMerchantsFood(China)Co.,Ltd. | Serviceexpenditure | Negotiation | 1,201,759.76 | 50,676.00 |
| ChinaMarineShippingAgencyShenzhenCo.,Ltd. | Serviceexpenditure | Negotiation | 1,022,766.82 | 1,095,062.50 |
| ChinaMerchantsHaidaInsuranceConsultantCo.LTD | Serviceexpenditure | Negotiation | 243,438.98 | 2,351,146.06 |
| ChinaMerchantsBureauLogisticsGroupQingdaoCo.,Ltd | Serviceexpenditure | Negotiation | 183,960.81 | 1,011,481.25 |
| ShenzhenWestPortSecurityServiceCompany | Serviceexpenditure | Negotiation | - | 2,140,188.70 |
| ChinaMerchantsRenheLifeInsuranceCo.LTD | Serviceexpenditure | Negotiation | - | 1,828,081.51 |
| KhorAmbadoFZCo | Serviceexpenditure | Negotiation | - | 1,334,921.77 |
| Otherrelatedparty | Serviceexpenditure | Negotiation | 7,203,788.85 | 4,255,513.74 |
| ChinaMerchantsGroupFinanceCo.LTD | Interestpayments | Negotiation | 30,389,688.50 | 17,054,903.23 |
| ChinaMerchantsBankCo.LTD | Interestpayments | Negotiation | 3,268,813.97 | 1,510,507.99 |
| ChinaMerchantsFinanceleasing(Tianjin)Co.,LTD | Interestpayments | Negotiation | - | 3,463,541.67 |
| NanshanGroupanditssubsidiaries | Propertyutilities | Negotiation | 290,902.36 | 2,579,881.82 |
| ShenzhenMerchantsPropertyManagementCo.,LTD | Propertyutilities | Negotiation | - | 4,649,769.22 |
| Otherrelatedparty | Propertyutilities | Negotiation | - | 942,608.78 |
| Total | 105,353,534.81 | 85,290,057.95 | ||
-134-
X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(1)Renderingandreceiptofservice-continued
Unit:RMB
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Renderingofservice: | ||||
| AntongHoldingCo.,Ltd.anditssubsidiaries | Servicerevenue | Negotiation | 98,541,945.59 | 61,740,139.88 |
| ZhanjiangCoscoShippingLogisticsCo.LTD | Servicerevenue | Negotiation | 88,294,684.14 | 65,809,923.78 |
| ChinaCOSCOShippingGroupanditssubsidiaries | Servicerevenue | Negotiation | 67,594,546.16 | 191,399,439.67 |
| GuangdongSinotransshippingAgencyCo.LTD | Servicerevenue | Negotiation | 38,552,309.99 | 19,894,702.69 |
| ChinaZhanjiangoceanShippingAgencyCo.LTD | Servicerevenue | Negotiation | 25,067,430.42 | 26,430,608.95 |
| QingdaoQianwanUnitedContainerTerminalCo.LTD | Servicerevenue | Negotiation | 22,637,413.70 | 22,646,763.19 |
| LiaoningPortCo.LTD | Servicerevenue | Negotiation | 19,864,136.94 | - |
| YingkouPortGroupCo.LTD | Servicerevenue | Negotiation | 16,175,416.62 | - |
| ShenzhenMerchantsInternationalShippingAgencyCo.LTD | Servicerevenue | Negotiation | 9,322,068.75 | 2,941,424.71 |
| YoulianShipyard(Shekou)Co.,LTD | Servicerevenue | Negotiation | 7,465,890.54 | 2,412,855.54 |
| LiaoningPortGroupCo.LTD | Servicerevenue | Negotiation | 6,851,108.81 | - |
| NingboZhoushan | Servicerevenue | Negotiation | 6,777,410.02 | - |
| ShenzhenBaohongTechnologyCo.,LTD | Servicerevenue | Negotiation | 5,643,062.05 | - |
| ShenzhenQianhaiSinotransSupplyChainManagementCo.,LTD | Servicerevenue | Negotiation | 3,679,093.79 | 2,382,499.13 |
| ChinaMerchantsInternationalColdChain(Shenzhen)Co.,LTD | Servicerevenue | Negotiation | 3,453,502.00 | 3,358,865.70 |
| ShenzhenSinotransshippingAgencyCo.LTD | Servicerevenue | Negotiation | 2,818,483.03 | 2,259,799.79 |
| YingkouGangrongBigDataCo.,LTD | Servicerevenue | Negotiation | 2,332,986.53 | 289,466.96 |
| ShantouInternationalContainerTerminalsCo.LTD | Servicerevenue | Negotiation | 2,257,929.61 | 1,263,661.19 |
| ChinaYangtzeRiverSteamshipCo.LTD | Servicerevenue | Negotiation | 2,133,440.00 | - |
| ChinaShenzhenoceanshippingAgencyCo.LTD | Servicerevenue | Negotiation | 2,099,723.96 | 10,190,194.09 |
| EastGuizhouLandPortOperationCo.LTD | Servicerevenue | Negotiation | 2,046,879.50 | 1,643,215.08 |
| ShantouZhongliantallyCo.,LTD | Servicerevenue | Negotiation | 2,033,121.99 | 359,742.38 |
| QingdaoQianwanWestPortUnitedWharfCo.,LTD | Servicerevenue | Negotiation | 1,724,078.14 | 1,612,607.38 |
| ChinaMerchantsHeavyIndustries(Jiangsu)Co.LTD | Servicerevenue | Negotiation | 1,494,112.80 | 225,074.82 |
| QingdaoQianwanNewUnionContainerTerminalCo.LTD | Servicerevenue | Negotiation | 1,446,408.10 | 1,453,413.79 |
| Sinotrans(HongKong)ShippingCompanylimited | Servicerevenue | Negotiation | 1,391,042.72 | - |
| SouthChinaSinotransSupplyChainManagementCo.,LTD | Servicerevenue | Negotiation | 1,277,958.26 | 3,952,260.53 |
| Sinotranscontainertransport(HongKong)Co.,LTD | Servicerevenue | Negotiation | 1,277,956.30 | 304,231.20 |
-135-
X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(1)Renderingandreceiptofservice-continued
Unit:RMB
| Relatedparty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Renderingofservice:-continued | ||||
| QingdaoBondedLogisticsParkSinotransStoragelogisticsCo.LTD | Servicerevenue | Negotiation | 1,166,773.53 | 853,254.61 |
| GuangdongSinotransShippingCo.LTD | Servicerevenue | Negotiation | 1,066,579.80 | 463,819.11 |
| YantaiPortGroupLaizhouPortCo.LTD | Servicerevenue | Negotiation | 1,006,226.41 | - |
| GuizhouQiandongnanLandPortOperationCo.LTD | Servicerevenue | Negotiation | 698,145.68 | 2,170,933.76 |
| ChinaMerchantsPortInvestmentdevelopmentCo.LTD | Servicerevenue | Negotiation | 651,707.54 | 6,875,471.73 |
| QingdaoSinotransSupplyChainManagementCo.,LTD | Servicerevenue | Negotiation | 280,430.34 | 1,381,761.20 |
| DoralehMulti-purposePort | Servicerevenue | Negotiation | 241,063.92 | 1,007,325.33 |
| SinotransContainerTransportationCo.LTD | Servicerevenue | Negotiation | 137,305.63 | 1,867,447.60 |
| ShenzhenForwarderStorageCo.,LTD | Servicerevenue | Negotiation | 122,507.33 | 3,271,684.66 |
| ShenzhenBaohongTechnologyCo.,LTD | Servicerevenue | Negotiation | - | 4,043,370.07 |
| ShenzhenforwarderInternationalfreightCo.,LTD | Servicerevenue | Negotiation | - | 3,093,622.85 |
| NingboDaxie | Servicerevenue | Negotiation | - | 1,467,170.05 |
| Otherrelatedparty | Servicerevenue | Negotiation | 7,000,909.78 | 7,103,107.07 |
| TerminalLinkSAS | Interestincome | Negotiation | 83,985,071.35 | 47,175,076.70 |
| PortofNewcastleanditssubsidiaries | Interestincome | Negotiation | 32,103,266.39 | 29,765,975.26 |
| ChinaMerchantBankCo.,Ltd. | Interestincome | Negotiation | 27,709,063.52 | 14,161,811.40 |
| ChinaMerchantsGroupFinanceCompanyLimited | Interestincome | Negotiation | 16,044,336.39 | 4,840,581.56 |
| ChinaMerchantsHarborCity | Interestincome | Negotiation | 1,957,067.27 | 24,449,639.56 |
| ChinaMerchantsAntongLogisticsManagementCo.,LTD | Interestincome | Negotiation | - | 3,248,630.14 |
| Otherrelatedparty | Interestincome | Negotiation | 823,676.39 | 735,917.68 |
| Total | 619,248,271.73 | 580,547,490.79 |
-136-
X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(2)LeaseswithrelatedpartiesTheGroupasthelessor:
Unit:RMB
| Nameofthelessee | Typeofleasedassets | Pricingmethodanddecisionproceduresofrelatedtransactions | Leaseincomerecognizedinthecurrentperiod | Leaseincomerecognizedinthepriorperiod |
| QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | Portandwharffacilities | Negotiation | 4,815,722.20 | 4,663,926.38 |
| QingdaoBondedLogisticsParkSino-foreignTransportWarehousingLogisticsCo.,Ltd. | Buildings | Negotiation | 2,825,722.88 | 2,616,103.75 |
| ChinaMerchantsFood(China)Co.,Ltd. | Buildings | Negotiation | 2,641,029.00 | 2,338,264.98 |
| ChinaCommunicationsImport&ExportCo.,Ltd. | Buildings | Negotiation | 2,606,198.16 | 2,304,217.40 |
| QingdaoSinotransSupplyChainManagementCo.,Ltd. | Buildings | Negotiation | 1,947,099.43 | 1,030,172.01 |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | Buildings | Negotiation | 1,504,168.98 | - |
| ChinaMerchantsSecuritiesCo.,Ltd. | Buildings | Negotiation | 1,239,270.84 | 1,126,349.15 |
| NanshanGroupanditssubsidiaries | Buildings | Negotiation | 1,205,711.40 | 1,221,353.05 |
| YiuLianDockyards(Shekou)Limited | Buildings | Negotiation | 1,180,174.54 | 1,363,141.03 |
| SinotransSouthChinaCo.,Ltd. | Buildings | Negotiation | 733,987.15 | - |
| Otherrelatedparty | Buildings,landuserights | Negotiation | 2,954,403.60 | 2,533,033.88 |
| Total | 23,653,488.18 | 19,196,561.63 |
(3)RelatedpartyguaranteesTheGroupastheguarantor
Unit:RMB
| Securedparty | Creditline | Guaranteedamount | Commencementdate | Maturitydate | Theguaranteehasbeencompletedornot |
| Fortheperiodfrom1Januaryto30June2021 | |||||
| TerminalLinkSAS(Note1) | 67,144,809.51 | 67,144,809.51 | 1June2013 | 2033 | No |
| KhorAmbadoFZCo(Note2) | 186,692,802.05 | 112,388,291.40 | 24May2019 | 2032 | No |
| Total | 253,837,611.56 | 179,533,100.91 | |||
| Fortheperiodfrom1Januaryto30June2020 | |||||
| TerminalLinkSAS(Note1) | 80,622,102.91 | 80,622,102.91 | 1June2013 | 2033 | No |
| KhorAmbadoFZCo(Note2) | 203,198,400.00 | 122,324,592.81 | 24May2019 | 2032 | No |
| Total | 283,820,502.91 | 202,946,695.72 | |||
Note1:CMACGMS.A.isanothershareholderofTerminalLinkSAS,anassociateoftheGroup.
TheGrouphasmadeacommitmenttoCMACGMS.A.thattheGroupwillprovidesguaranteeforitsbankloanfinancingtotheassociateTerminalLinkSASandotherliabilitiestotheextentoftheGroup's49%ownershipinterestinthecompany.TheactualguaranteedamountisRMB67,144,809.51on30June2021.Ifanyguaranteeliabilityoccurs,theGroupwillcompensateCMACGMS.A.Note2:KhorAmbadoFZCoisarelatedcompanyoftheGroup'scommonultimatecontrolling
shareholder.TheGroupprovidesguaranteeforitsbankloansandotherliabilities,withactualguaranteedamountofRMB112,388,291.40asat30June2021.
-137-
X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(4)Borrowingsandloanswithrelatedparties
Unit:RMB
| Relatedparty | Amount | Commencementdate | Maturitydate | Description |
| Fortheperiodfrom1Januaryto30June2021 | ||||
| Borrowings | ||||
| ChinaMerchantsGroupFinanceCompanyLimited | 197,112,248.22 | 1March2021 | 21June2024 | Fixedinterestrateof1.2000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 80,661,051.60 | 17May2021 | 12March2029 | Fixedinterestrateof4.5100% |
| ChinaMerchantsGroupFinanceCompanyLimited | 58,800,000.00 | 8April2021 | 31October2023 | Fixedinterestrateof1.2000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 50,044,968.20 | 11June2021 | 10June2022 | Fixedinterestrateof3.8500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 47,050,263.90 | 9April2021 | 8April2022 | Fixedinterestrateof3.8500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 33,029,679.02 | 25June2021 | 24June2022 | Fixedinterestrateof3.8500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 30,030,917.00 | 10May2021 | 9May2022 | Fixedinterestrateof3.7100% |
| ChinaMerchantsGroupFinanceCompanyLimited | 20,021,388.90 | 19April2021 | 18April2022 | Fixedinterestrateof3.8500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,075,542.47 | 7June2021 | 4December2021 | Fixedinterestrateof2.5500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,016,767.12 | 22March2021 | 18September2021 | Fixedinterestrateof2.7300% |
| Total | 536,842,826.43 | |||
| Fortheperiodfrom1Januaryto30June2020 | ||||
| Borrowings | ||||
| ChinaMerchantsGroupFinanceCompanyLimited | 200,225,000.00 | 14April2020 | 13April2021 | Fixedinterestrateof4.0500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 50,051,527.78 | 21May2020 | 20May2021 | Fixedinterestrateof3.7100% |
| ChinaMerchantsGroupFinanceCompanyLimited | 47,000,000.00 | 6January2020 | 7October2024 | Fixedinterestrateof4.5125% |
| ChinaMerchantsGroupFinanceCompanyLimited | 29,032,625.00 | 10April2020 | 24December2020 | Fixedinterestrateof4.0500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 20,022,500.00 | 7April2020 | 6April2021 | Fixedinterestrateof4.0500% |
| ChinaMerchantsGroupFinanceCompanyLimited | 14,033,425.02 | 13March2020 | 12March2029 | Fixedinterestrateof4.5050% |
| ChinaMerchantsGroupFinanceCompanyLimited | 10,000,000.00 | 19June2020 | 31October2023 | Fixedinterestrateof1.2000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 6,109,400.45 | 22June2020 | 21June2024 | Fixedinterestrateof1.2000% |
| ChinaMerchantsGroupFinanceCompanyLimited | 5,045,500.00 | 25March2020 | 12March2029 | Fixedinterestrateof4.5050% |
| ChinaMerchantsGroupFinanceCompanyLimited | 3,758,844.48 | 22April2020 | 12March2029 | Fixedinterestrateof4.5050% |
| ChinaMerchantsGroupFinanceCompanyLimited | 2,659,474.10 | 5June2020 | 12March2029 | Fixedinterestrateof4.5050% |
| Total | 387,938,296.83 | |||
| Lending | ||||
| TerminalLinkSAS | 3,016,715,205.48 | 26March2020 | 26March2028 | Fixedinterestrateof6.0000% |
| PortofNewcastleanditssubsidiaries | 811,518,975.10 | 30May2020 | 23July2023 | Fixedinterestrateof8.0000% |
| TianjinHaitianBondedLogisticsCo.,Ltd. | 34,300,000.00 | 3January2020 | 2January2023 | Fixedinterestrateof4.7500% |
| Total | 3,862,534,180.58 | |||
-138-
X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
5.Relatedpartytransactions-continued
(5)Assettransferwithrelatedparties
| RelatedParty | Contentoftransaction | Pricingmethodanddecisionproceduresofrelatedtransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| HoiTung(Shanghai)CompanyLimited | Machineryandequipment | Negotiation | 1,371,681.42 | 8,202,477.87 |
| HoiTungInnotek(Shenzhen)CompanyLimited | Machineryandequipment | Negotiation | - | 1,946,000.00 |
| Otherrelatedparty | Generalofficeequipment | Negotiation | - | 83,584.00 |
| Total | 1,371,681.42 | 10,232,061.87 |
(6)Compensationforkeymanagementpersonnel
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Compensationforkeymanagementpersonnel | 8,523,459.60 | 12,350,017.98 |
6.Amountsduefrom/torelatedparties
(1)Amountsduefromrelatedparties
Unit:RMB
| Item | Relatedparty | Closingbalance | Openingbalance |
| Cashandbankbalances | ChinaMerchantBankCo.,Ltd. | 2,691,250,944.82 | 1,901,262,575.44 |
| ChinaMerchantsGroupFinanceCompanyLimited | 905,012,170.44 | 1,568,924,175.58 | |
| Total | 3,596,263,115.26 | 3,470,186,751.02 | |
| Held-for-tradingfinancialassets | ChinaMerchantBankCo.,Ltd. | 1,000,000,000.00 | 850,000,000.00 |
| Accountsreceivable | ZhanjiangCoscoShippingLogisticsCo.LTD | 19,342,270.90 | 4,326,223.02 |
| LiaoningPortCo.LTD | 16,493,768.48 | - | |
| AntongHoldingCo.,Ltd.anditssubsidiaries | 15,653,452.72 | 10,508,254.42 | |
| GuangdongSinotransshippingAgencyCo.LTD | 9,678,632.47 | 7,777,640.18 | |
| QingdaoQianwanUnitedContainerTerminalCo.LTD | 6,905,264.80 | - | |
| QingdaoQianwanWestPortUnitedWharfCo.,LTD | 4,772,120.07 | 2,007,669.18 | |
| ShenzhenMerchantsInternationalShippingAgencyCo.LTD | 3,543,875.73 | 590,901.89 | |
| KhorAmbadoFZCo | 2,893,383.20 | 2,774,015.84 | |
| YoulianShipyard(Shekou)Co.,LTD | 1,837,823.70 | 725,330.10 | |
| SinotransContainerTransportationCo.LTD | 1,781,312.75 | 1,148,569.75 | |
| PortDeDjiboutiS.A | 1,648,150.20 | 1,497,611.83 | |
| NingboShippingAgencyCo.LTD | 822,263.98 | 7,773,568.86 | |
| ShenzhenBaohongTechnologyCo.,LTD | 641,391.13 | 2,641,391.12 | |
| GreatHornDevelopmentCompanyFzco | 437,535.62 | 1,427,020.52 | |
| EastGuizhouLandPortOperationCo.LTD | 44,900.00 | 3,612,221.02 | |
| SouthChinaSinotransSupplyChainManagementCo.,LTD | 40,116.00 | 1,035,675.13 | |
| GuizhouQiandongnanLandPortOperationCo.LTD | 11,260.00 | 1,061,604.20 | |
| ChinaOceanShippingGroupCompanyLimitedanditssubsidiaries | - | 120,615,548.37 | |
| Otherrelatedparty | 13,265,812.48 | 7,890,241.86 | |
| Total | 99,813,334.23 | 177,413,487.29 |
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X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
6.Amountsduefrom/torelatedparties-continued
(1)Amountsduefromrelatedparties-continued
Unit:RMB
| Item | Relatedparty | Closingbalance | Openingbalance |
| Otherreceivables | ShanghaiInternationalPort(Group)Co.LTD | 756,630,823.35 | - |
| NanshanGroupanditssubsidiaries | 316,246,500.00 | 210,831,000.00 | |
| LiaoningPortCo.LTD | 74,242,730.44 | - | |
| QingdaoPortInternationalCo.,LTD | 39,116,713.02 | - | |
| PearlRiverInlandCargoTerminalCo.LTD | 33,692,528.00 | 57,607,520.00 | |
| PortDeDjiboutiS.A | 23,097,175.98 | 23,248,597.69 | |
| Tin-CanIslandContainerTerminalLtd | 22,996,441.34 | 33,289,037.77 | |
| ZhanjiangCoscoShippingLogisticsCo.LTD | 13,378,666.52 | 13,378,666.52 | |
| ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.,LTD | 6,000,000.00 | 4,000,000.00 | |
| ZhanjiangInfrastructureConstructioninvestmentGroupCo.LTD | 4,907,365.06 | 31,513,558.60 | |
| ZhoushanBlueSeaInvestmentCo.,LTD | 2,899,163.95 | 4,996,989.39 | |
| ShenzhenMerchantsrollertransportationCo.,LTD | 2,899,163.95 | 2,899,163.95 | |
| ChinaMerchants(Liaoning)PortDevelopmentCo.LTD | 2,500,000.00 | 2,000,000.00 | |
| YingkouPortGroupCo.LTD | 2,379,512.33 | - | |
| EurasiashipyardEnterpriseCo.,LTD | 1,411,165.96 | 1,422,660.84 | |
| InternationalDjiboutiIndustrialParksOperationFZCo | 1,142,084.99 | 922,676.08 | |
| ShenzhenMerchantInvestmentCo.,LTD | 1,132,846.40 | 1,068,658.39 | |
| Otherrelatedparty | 53,398,607.28 | 3,258,884.44 | |
| Total | 1,358,071,488.57 | 390,437,413.67 | |
| Advancepayment | Otherrelatedparty | 215,094.29 | 244,729.25 |
Unit:RMB
| Item | Relatedparty | Closingbalance | Openingbalance |
| Non-currentassetsduewithinoneyear | TerminalLinkSAS | 43,195,959.11 | 51,286,674.10 |
| PortofNewcastleanditssubsidiaries | 31,680,947.48 | 16,473,559.57 | |
| Total | 74,876,906.59 | 67,760,233.67 | |
| Long-termreceivables | TerminalLinkSAS | 2,728,165,833.95 | 2,746,067,386.31 |
| PortofNewcastleanditssubsidiaries | 798,004,103.00 | 815,144,304.00 | |
| TianjinHaitianBondedLogisticsCo.,Ltd. | 34,300,000.00 | 34,300,000.00 | |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 10,000,000.00 | 10,000,000.00 | |
| ZhanjiangChinaMerchantsHarborCityInvestmentCo.,Ltd. | - | 286,330,144.62 | |
| Total | 3,570,469,936.95 | 3,891,841,834.93 |
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X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
6.Amountsduefrom/torelatedparties-continued
(2)Amountsduetorelatedparties
Unit:RMB
| Item | Relatedparty | Closingbalance | Openingbalance |
| Short-termborrowings | ChinaMerchantsGroupFinanceCompanyLimited | 360,460,315.17 | 2,707,459,283.70 |
| Othercurrentliabilities | NanshanGroupanditssubsidiaries | - | 60,606,027.37 |
| Accountspayable | QingdaoQianwanWestPortUnitedWharfCo.,Ltd. | 5,766,560.89 | 6,381,033.57 |
| CHINANANSHANDEVELOPMENT(GROUP)INCORPORATION | 5,764,127.70 | 9,220,434.36 | |
| ShenzhenWandianIndustrialCo.,Ltd. | 5,474,619.51 | - | |
| EuroAsiaDockyardEnterpriseanddevelopmentLtd. | 2,289,297.08 | 2,994,548.16 | |
| YiuLianDockyardsLimited | 1,497,917.12 | 2,271,520.48 | |
| HoiTung(Shanghai)CompanyLimited | 1,197,676.00 | 55,666.09 | |
| ShenzhenNanyou(Holdings)Ltd. | 1,047,665.40 | - | |
| ChinaMarineShippingAgencyShenzhenCo.,Ltd. | 650,625.00 | 1,264,544.50 | |
| Otherrelatedparty | 2,651,952.36 | 524,734.79 | |
| Total | 26,340,441.06 | 22,712,481.95 | |
| Receiptsinadvance | PortdeDjiboutiS.A. | - | 10,350,122.63 |
| Otherrelatedparty | 710,488.75 | 606,631.45 | |
| Total | 710,488.75 | 10,956,754.08 | |
| Contractliabilities | COSCOLogistics(Zhanjiang)Co.,Ltd. | 2,508,813.10 | 922,080.60 |
| LiaoningPortGroupCo.,Ltd. | 1,528,447.50 | - | |
| QingdaoQianwanUnitedContainerTerminalCo.,Ltd. | 1,504,168.97 | - | |
| GuangdongSinotransShippingAgencyCo.,Ltd. | 763,011.94 | 2,304,015.01 | |
| Otherrelatedparty | 4,193,080.78 | 9,116,598.19 | |
| Total | 10,497,522.29 | 12,342,693.80 |
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X.RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued
6.Amountsduefrom/torelatedparties-continued
(2)Amountsduetorelatedparties-continued
Unit:RMB
| Item | Relatedparty | Closingbalance | Openingbalance |
| Otherpayables | ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd. | 436,486,486.24 | 26,418,918.90 |
| ChinaMerchantsUnionDevelopmentCo.,Ltd. | 348,500,295.23 | - | |
| PORTDEDJIBOUTIS.A | 259,498,179.18 | 175,497,252.70 | |
| ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd. | 140,933,640.00 | - | |
| EconomicandtradecrowndedevelopmentCo.,LTD | 75,608,046.12 | - | |
| SriLankaPortsAuthority | 34,032,542.04 | 34,255,854.79 | |
| LiaoningPortCo.,Ltd. | 29,428,227.19 | - | |
| ShenzhenInfrastructureInvestmentFundPartnershipEnterprise(limitedpartnership) | 24,643,069.16 | - | |
| ZhanjiangChinaMerchantsHarborCityInvestmentCo.,Ltd. | 24,500,000.00 | - | |
| BroadfordGlobalLimited | 21,019,399.04 | - | |
| ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd. | 20,000,000.00 | 20,000,000.00 | |
| ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd. | 14,305,122.78 | 14,305,122.78 | |
| DalianPortContainerDevelopmentCo.LTD | 12,160,517.31 | 12,160,517.31 | |
| SinotransShippingCo.,Ltd. | 10,049,355.79 | - | |
| ShenzhenMerchantsCommercialPropertyInvestmentCo.,Ltd. | 9,255,975.41 | 8,447,512.23 | |
| TerminalLink | 3,980,965.01 | 89,905,681.62 | |
| CentralizedLogistics | 3,972,477.39 | 3,972,477.39 | |
| ShenzhenQianhaiSinotransSupplyChainManagementCo.,Ltd. | 1,565,999.68 | 1,013,738.40 | |
| ZhanjiangXiagangUnitedDevelopmentCo.,Ltd. | 1,433,473.84 | 1,433,730.78 | |
| ORIENTUREHOLDINGSCOMPANYLIMITED | 1,277,244.00 | - | |
| ChinaMerchantsFood(China)Co.,Ltd. | 997,560.14 | 1,161,179.14 | |
| ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd. | 943,526.47 | 2,910,544.27 | |
| ShenzhenBaohongE-CommerceIntegratedServicesCo.,Ltd. | 746,226.77 | 2,634,014.09 | |
| ShenzhenPenavicoWarehousingCo.,Ltd. | - | 1,127,339.68 | |
| Otherrelatedparty | 5,720,463.79 | 2,819,966.38 | |
| Total | 1,481,058,792.58 | 398,063,850.46 | |
| Non-currentliabilitiesduewithinoneyear | ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd. | 104,738,787.19 | - |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | 59,482,964.07 | 58,348,704.99 | |
| NanshanGroupanditssubsidiaries | 50,410,822.69 | 54,030,933.00 | |
| ChinaMerchantsGroupFinanceCompanyLimited | 48,469,321.15 | 51,423,306.47 | |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 33,034,721.43 | 138,409,402.75 | |
| Otherrelatedparty | - | 53,267,076.87 | |
| Total | 296,136,616.53 | 355,479,424.08 | |
| Othernon-currentliabilities | NanshanGroupanditssubsidiaries | 1,067,982.93 | 944,011.06 |
| Leaseliabilities | ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd. | 228,333,546.47 | - |
| NanshanGroupanditssubsidiaries | 86,656,750.22 | 114,304,842.23 | |
| ChinaMerchantsTongshangFinanceLeaseCo.,Ltd. | 75,010,061.94 | 104,616,135.92 | |
| ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd. | 63,333,403.31 | 358,333,616.46 | |
| Otherrelatedparty | 4,304,459.38 | - | |
| Total | 457,638,221.32 | 577,254,594.61 | |
| Long-termborrowings | ChinaMerchantsGroupFinanceCompanyLimited | 514,157,284.53 | 426,100,835.53 |
| ChinaMerchantBankCo.,Ltd. | 174,847,500.00 | 109,033,232.39 | |
| Total | 689,004,784.53 | 535,134,067.92 |
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XI.SHARE-BASEDPAYMENTS
1.Summaryofshare-basedpayments
| TotalnumberoftheCompany'sequityinstrumentsgrantedduringtheperiod | 530,000shares |
| TotalnumberoftheCompany'sequityinstrumentsvestedduringtheperiod | N/A |
| TotalnumberoftheCompany'sequityinstrumentslapsedduringtheperiod | N/A |
| RangeofexercisepricesandremainingcontractuallifeoftheCompany'sshareoptionsoutstandingattheendoftheperiod | ExercisepriceisRMB17.80;remainingcontractuallifeis67months;ExercisepriceisRMB15.09;remainingcontractuallifeis67months |
| RangeofexercisepricesandremainingcontractuallifeoftheCompany'sotherequityinstrumentsoutstandingattheendoftheperiod | N/A |
2.Equity-settledshare-basedpayments
Unit:RMB
| Themethodofdeterminingthefairvalueofequityinstrumentsatthegrantdate | TheBlack-Scholesmodelisadoptedtoestimatethecostofgrantedstockoptions |
| Themethodofdeterminingthebestestimateofthenumberofequityinstrumentsexpectedtobevested | Oneachassetandliabilitydateinthewaitingperiod,thebestestimateismadeandthenumberofequityinstrumentsexpectedtobevestedisrevisedbasedonthelatestobtainedfollow-upinformationsuchaschangesinthenumberofvestedemployees. |
| Reasonsforthesignificantdifferencebetweentheestimateinthecurrentperiodandthatinthepriorperiod | N/A |
| Amountsofequity-settledshare-basedpaymentsaccumulatedincapitalreserve | 15,956,521.39 |
| Totalexpensesrecognizedarisingfromequity-settledshare-basedpayments | 10,800,221.18 |
Accordingtothe"ApprovalontheImplementationoftheStockOptionIncentivePlanofChinaMerchantsPortGroupCo.,Ltd."(GuoZiKaoFen[2019]No.748)oftheState-ownedAssetsSupervisionandAdministrationCommissionoftheStateCouncil,approvedbytheCompany'sfirstextraordinarygeneralmeetingofshareholderson3February2020,theCompanywillimplementastockoptionplanon3February2020(grantingdate),granting17.198millionstockoptionsto238incentiveobjectsatanexercisepriceofRMB17.80pershare.Thelockupperiodis24monthssincethedateonwhichtheoptionisgranted.Inthepremisethatvestingconditionsaresatisfied,theoptionsmaybeexercisedafter24monthssincethegrantingdate.Theoptionsareexercisedinthreetranches,including40%exercisableafter24monthsbutbefore36monthssubsequenttothegrantingdate;30%exercisableafter36monthsbutbefore48monthssubsequenttothegrantingdate;and30%exercisableafter48monthssubsequenttothegrantingdate.EachoptionrepresentstherightstosubscribeoneordinaryshareoftheCompany.
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XI.SHARE-BASEDPAYMENTS-continued
2.Equity-settledshare-basedpayments-continuedOnJanuary29,2021,approvedbythetenthBoardofDirectorsatthefirstextraordinarygeneralmeetingofshareholdersoftheyear2021,theCompanyimplementedastockoptionplaneffectiveJanuary29,2021,granting530,000stockoptionstothreeincentivetargetsattheexercisepriceofRMB15.09pershareandthegrantdateofJanuary29,2021.Stockoptionsarelockedupfor24monthsfromthedateofgrant,andcanbeexercisedafter24monthsofgrant,subjecttothesatisfactionofexerciseconditions.Theexercisewillbeintwotranches,50%ofthefirsttranche(24monthsfromthegrantdateto36monthsfromthegrantdate)and50%ofthesecondtranche(36monthsto72monthsfromthegrantdate);Eachstockoptiongivestheholdertherighttosubscribeforonecommonstockofthecompany.XII.COMMITMENTSANDCONTINGENCIES
1.Significantcommitments
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Commitmentsthathavebeenenteredintobuthavenotbeenrecognizedinthefinancialstatements | ||
| -Commitmenttoinjectcapitalininvestees | 16,600,000.00 | 11,500,000.00 |
| -Commitmenttoacquirelong-termassets | 2,035,035,538.99 | 2,682,977,514.73 |
| -Commitmenttoinvestportconstruction | 998,409,375.73 | 1,004,960,692.18 |
| -Others | - | 20,831,652.14 |
| Total | 3,050,044,914.72 | 3,720,269,859.05 |
2.Contingencies
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Contingentliabilitiesarisingfromlitigations(Note1) | 223,604,924.98 | 213,109,668.45 |
| Guaranteesforborrowingsofassociates(Note2) | 179,533,100.91 | 184,129,723.74 |
| Total | 403,138,025.89 | 397,239,392.19 |
Note1:Thisrepresentsthesignificantcontingentliabilitiesarisingfromthelitigationsbetween
TCPanditssubsidiariesandlocaltaxauthority,employeeorformeremployeeofTCPanditssubsidiariesinBrazilatastheyearend.AccordingtothelatestestimatesoftheGroup'smanagement,thepossiblecompensationisRMB223,604,924.98butitisnotlikelytocauseoutflowofeconomicbenefitsfromtheGroup.Therefore,thecontingentliabilitiesarisingfromtheabovependinglitigationsarenotrecognizedasprovisions.Thecounter-bonificationwheretheGroupasthebeneficiarywillbeexecutedbytheformerTCPshareholderthatdisposedtheshares.Accordingtothecounter-bonificationagreement,theformerTCPshareholderneedtomakecounter-bonificationtotheGroupinrespectoftheabovecontingentliabilities,withthecompensationamountnotexceedingpre-determinedamountandspecifiedperiod.Note2:Asof30June2021,theguaranteesprovidedbytheGrouptorelatedpartiesaresetoutin
NoteX5(3).
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XII.COMMITMENTSANDCONTINGENCIES-continued
2.Contingencies-continuedAsof30June2021,theGroup'sdirectorsassessedtheriskofdefaultbyrelatedpartiesinrespectofaboveloansandotherliabilities.Thedirectorsbelievethattheriskisimmaterialandthereisminorpossibilityoflossduetotheguarantee.Asof30June2021,inadditiontoaforesaidcontingencies,theGrouphadnoothersignificantguaranteeorcontingenciesthatneedtobeexplained.XIII.OTHERSIGNIFICANTEVENTS
1.Segmentreporting
(1)BasisfordeterminingreportingsegmentsandaccountingpoliciesThekeymanagementteamoftheCompanyisregardedastheCODM,whoreviewstheGroup'sinternalreportsinordertoassessperformance,allocateresourcesanddeterminetheoperatingsegments.TheCODMmanagestheGroup'soperationsbydivisionsfrombothbusinessandgeographicperspectives.Inrespectofbusinesssegments,managementassessestheperformanceoftheGroup'sbusinessoperationsincludingportsoperation,bondedlogisticsoperationandotheroperations.PortsoperationPortsoperationincludescontainerterminaloperation,bulkandgeneralcargoterminaloperationoperatedbytheGroupanditsassociatesandjointventures.TheGroup'sreportablesegmentsoftheportsoperationareasfollows:
(a)MainlandChina,HongKongandTaiwan?PearlRiverDelta?YangtzeRiverDelta?BohaiRim?Others(b)OtherlocationsoutsideofMainlandChina,HongKongandTaiwanBondedlogisticsoperationBondedlogisticsoperationincludeslogisticsparkoperation,portstransportationandairportcargohandlingoperatedbytheGroupanditsassociatesandjointventures.
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XIII.OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(1)Basisfordeterminingreportingsegmentsandaccountingpolicies-continued(b)OtherlocationsoutsideofMainlandChina,HongKongandTaiwan-continuedOtheroperationsOtheroperationsmainlyincludespropertydevelopmentandinvestmentandlogisticsbusiness,propertyinvestmentoperatedbytheGroupandcorporatefunction.Eachofthesegmentsunderportsoperationincludetheoperationsofanumberofportsinvariouslocationswithinonegeographiclocation,eachofwhichisconsideredasaseparateoperatingsegmentbytheCODM.Forthepurposeofsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedintoreportablesegmentsongeographicbasisinordertopresentamoresystematicandstructuredsegmentinformation.Togivedetailsofeachoftheoperatingsegments,intheopinionofthedirectorsoftheCompany,wouldresultinparticularsofexcessivelength.Bondedlogisticsoperationandotheroperationsincludeanumberofdifferentoperations,eachofwhichisconsideredasaseparatebutinsignificantoperatingsegmentbytheCODM.Forsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedaccordingtothenaturesoftheiroperationstogiverisetomoremeaningfulpresentation.Therearenomaterialsalesorothertransactionsbetweenthesegments.Asat30June2021,around74%ofTheGroup'snon-currentassetsotherthanfinancialinstrumentsanddeferredtaxassetsarelocatedinMainlandChina.
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XIII.OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)SegmentfinancialinformationSegmentfinancialinformationfortheperiodfrom1Januaryto30June2021isasfollows:
Unit:RMB
| Item | Portsoperation | Bondedlogisticsoperation | Others | Unallocatedamount | Total | |||||
| MainlandChina,HongKongandTaiwan | Otherlocations | Sub-total | ||||||||
| PearlRiverDelta | YangtzeRiverDelta | BohaiRim | Others | |||||||
| Operatingincome | 2,958,636,092.61 | 445,352,534.85 | 29,216,911.55 | 1,835,209,454.62 | 1,780,044,983.01 | 7,048,459,976.64 | 204,996,959.89 | 86,485,925.73 | - | 7,339,942,862.26 |
| Operatingcost | 1,463,264,383.33 | 294,515,383.40 | 24,262,314.83 | 1,357,822,363.64 | 828,625,928.99 | 3,968,490,374.19 | 116,498,905.11 | 113,461,884.97 | - | 4,198,451,164.27 |
| Segmentoperatingprofit(loss) | 1,495,371,709.28 | 150,837,151.45 | 4,954,596.72 | 477,387,090.98 | 951,419,054.02 | 3,079,969,602.45 | 88,498,054.78 | -26,975,959.24 | - | 3,141,491,697.99 |
| Adjustments: | ||||||||||
| Taxesandlevies | 14,236,877.98 | 4,434,038.81 | 804,172.44 | 22,100,637.68 | 21,478,264.65 | 63,053,991.56 | 12,585,134.87 | 11,962,498.86 | 70,009.19 | 87,671,634.48 |
| Administrativeexpense | 184,243,456.42 | 18,532,917.24 | 4,506,885.61 | 234,916,150.46 | 110,937,648.90 | 553,137,058.63 | 21,077,687.84 | 500,756.95 | 191,654,469.95 | 766,369,973.37 |
| R&Dexpenses | 78,300,758.52 | 17,746,269.79 | - | 2,297,382.94 | - | 98,344,411.25 | - | - | - | 98,344,411.25 |
| Financialexpenses | 29,725,717.45 | 8,678,428.13 | -777,466.39 | 63,808,478.07 | 56,277,939.54 | 157,713,096.80 | 7,761,420.36 | 12,483,780.77 | 552,150,715.95 | 730,109,013.88 |
| Otherincome | 261,485,766.57 | 3,756,131.01 | 5,469.40 | 35,096,987.85 | - | 300,344,354.83 | 5,384,761.18 | 253,142.61 | - | 305,982,258.62 |
| Investmentincome(losses) | 160,123,605.49 | 2,359,088,694.76 | 166,101,087.00 | -125,284.28 | 232,031,348.91 | 2,917,219,451.88 | 5,357,126.04 | 685,388,257.49 | 1,778,756.18 | 3,609,743,591.59 |
| Gains(losses)fromchangesinfairvalue | - | - | -45,536,366.63 | 7,839.22 | -443,004,339.04 | -488,532,866.45 | - | - | - | -488,532,866.45 |
| Impairmentgains(losses)ofcredit | -3,259,224.54 | - | - | 1,028,795.37 | -356,511.85 | -2,586,941.02 | 608.82 | - | - | -2,586,332.20 |
| Impairmentgainsofassets | - | - | - | - | - | - | - | - | - | - |
| Gainsfromdisposalofassets | 3,341,383.58 | - | 6,676,633.08 | -1,025,646.41 | -7,563.09 | 8,984,807.16 | 474,861.45 | - | -26,950.69 | 9,432,717.92 |
| Operatingprofit(loss) | 1,610,556,430.01 | 2,464,290,323.25 | 127,667,827.91 | 189,247,133.58 | 551,388,135.86 | 4,943,149,850.61 | 58,291,169.20 | 633,718,404.28 | -742,123,389.60 | 4,893,036,034.49 |
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XIII.OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)Segmentfinancialinformation-continuedSegmentfinancialinformationfortheperiodfrom1Januaryto30June2021isasfollows:-continued
Unit:RMB
| Item | Portsoperation | Bondedlogisticsoperation | Others | Unallocatedamount | Total | |||||
| MainlandChina,HongKongandTaiwan | Otherlocations | Sub-total | ||||||||
| PearlRiverDelta | YangtzeRiverDelta | BohaiRim | Others | |||||||
| Non-operatingincome | 5,880,047.84 | 222,001.00 | 117.74 | 5,665,939.99 | 14,120,880.19 | 25,888,986.76 | 16,057.97 | 7,500.52 | 3,075,124.48 | 28,987,669.73 |
| Non-operatingexpenses | 2,607,728.49 | 520,306.61 | - | 2,859,851.13 | 8,335,822.20 | 14,323,708.43 | - | - | 155.84 | 14,323,864.27 |
| Grossprofit(loss) | 1,613,828,749.36 | 2,463,992,017.64 | 127,667,945.65 | 192,053,222.44 | 557,173,193.85 | 4,954,715,128.94 | 58,307,227.17 | 633,725,904.80 | -739,048,420.96 | 4,907,699,839.95 |
| Incometaxexpenses | 445,759,645.96 | 127,856,225.71 | 2,651,491.03 | 35,828,242.11 | -34,288,062.34 | 577,807,542.47 | 16,258,079.87 | 42,355,973.99 | 7,016,998.79 | 643,438,595.12 |
| Netprofit(loss) | 1,168,069,103.40 | 2,336,135,791.93 | 125,016,454.62 | 156,224,980.33 | 591,461,256.19 | 4,376,907,586.47 | 42,049,147.30 | 591,369,930.81 | -746,065,419.75 | 4,264,261,244.83 |
| Segmentassets | 31,419,667,673.20 | 37,048,877,827.99 | 7,821,876,057.03 | 25,610,960,074.80 | 43,304,350,785.30 | 145,205,732,418.32 | 3,127,111,154.80 | 18,920,556,283.34 | 1,447,933,155.60 | 168,701,333,012.06 |
| Totalassetsinthefinancialstatements | 168,701,333,012.06 | |||||||||
| Segmentliabilities | 15,881,739,330.71 | 1,604,929,487.56 | 168,535,261.21 | 7,085,779,290.05 | 9,789,776,859.51 | 34,530,760,229.04 | 512,242,308.80 | 1,367,896,065.98 | 24,014,187,743.26 | 60,425,086,347.08 |
| Totalliabilitiesinthefinancialstatements | 60,425,086,347.08 | |||||||||
| Supplementaryinformation: | ||||||||||
| DepreciationandAmortization | 413,217,286.57 | 97,809,276.72 | 576,581.77 | 453,985,137.11 | 390,400,077.86 | 1,355,988,360.03 | 48,120,450.03 | 87,627,524.99 | 11,009,272.95 | 1,502,745,608.00 |
| Interestincome | 58,372,755.01 | 1,901,649.27 | 203,076.80 | 16,018,660.30 | 120,871,526.13 | 197,367,667.51 | 551,704.45 | 1,250,580.78 | -15,978,940.81 | 183,191,011.93 |
| Interestexpense | 34,508,206.53 | 4,866,262.52 | - | 79,738,998.15 | 153,574,206.66 | 272,687,673.86 | 8,253,482.58 | 15,433,783.96 | 596,135,609.36 | 892,510,549.76 |
| Investmentincomefromlong-termequityinvestmentunderequitymethod | 126,099,863.96 | 2,359,088,694.75 | 126,123,636.71 | 23,270,489.39 | 232,031,348.91 | 2,866,614,033.72 | 5,357,126.04 | 685,388,257.49 | - | 3,557,359,417.25 |
| Long-termequityinvestmentunderequitymethod | 4,221,992,878.44 | 30,182,199,522.01 | 6,729,096,972.51 | 594,343,756.26 | 11,747,365,977.54 | 53,474,999,106.76 | 702,501,030.64 | 13,251,776,094.55 | - | 67,429,276,231.95 |
| Non-currentassetsotherthanlong-termequityinvestment | 21,560,411,415.88 | 4,161,624,530.36 | 15,156,855.04 | 19,227,483,637.89 | 24,803,854,837.76 | 69,768,531,276.93 | 2,181,301,447.05 | 5,158,578,410.79 | 419,769,686.44 | 77,528,180,821.21 |
-148-
XIII.OTHERSIGNIFICANTEVENTS-continued
1.Segmentreporting-continued
(2)Segmentfinancialinformation-continuedTheGroup'srevenuebygeographicalareasofoperationsandinformationaboutitsnon-currentassetsotherthanfinancialinstrumentsanddeferredtaxassetspresentedbasedonthegeographicalareasinwhichtheassetsarelocatedasfollows:
Unit:RMB
| Revenuefromexternaltransactions | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| MainlandChina,HongKongandTaiwan | 5,552,294,281.37 | 4,255,086,509.16 |
| PearlRiverDelta | 3,181,051,472.13 | 2,616,336,283.54 |
| YangtzeRiverDelta | 445,352,534.85 | - |
| BohaiRim | 90,680,819.77 | 86,840,044.42 |
| Others | 1,835,209,454.62 | 1,551,910,181.20 |
| Otherlocations | 1,787,648,580.89 | 1,707,411,207.80 |
| Total | 7,339,942,862.26 | 5,962,497,716.96 |
Unit:RMB
| Totalnon-currentassets | Closingbalance | Openingbalance |
| MainlandChina,HongKongandTaiwan | 107,559,680,059.35 | 105,111,642,513.71 |
| PearlRiverDelta | 46,020,200,068.06 | 45,459,155,093.97 |
| YangtzeRiverDelta | 34,343,824,052.38 | 32,716,973,145.44 |
| BohaiRim | 7,335,410,610.59 | 6,903,596,351.63 |
| Others | 19,860,245,328.32 | 20,031,917,922.67 |
| Otherlocations | 37,397,776,993.81 | 39,164,278,189.74 |
| Total | 144,957,457,053.16 | 144,275,920,703.45 |
(3)DegreeofrelianceonmajorcustomersThetotaloperatingincomederivedfromthetopfiveclientsoftheGroupisRMB1,839,867,457.34,accountingfor25.07%oftheGroup'stotaloperatingincome.XIV.NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS
1.Otherreceivables
(1)Summaryofotherreceivables
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Dividendsreceivable | 987,547,283.67 | 311,297,793.86 |
| Otherreceivables | 1,011,643,024.62 | 791,414,958.18 |
| Total | 1,999,190,308.29 | 1,102,712,752.04 |
-149-
XIV.NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-
continued
1.Otherreceivables-continued
(2)Dividendsreceivable(a)Disclosureofdividendsreceivable
Unit:RMB
| Companyname | Closingbalance | Openingbalance |
| CMPort | 652,351,928.94 | - |
| ChiwanWharf(HongKong) | 147,680,363.88 | 147,680,363.88 |
| DongguanChiwanTerminalCo.,Ltd. | 135,254,038.80 | 147,233,909.98 |
| NingboPortCompanyLimited | 35,328,355.20 | - |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | 15,707,120.00 | 15,707,120.00 |
| JiangsuNinghuExpresswayCo.,LTD | 920,000.00 | 460,000.00 |
| ShenzhenPetrochemicalIndustry(Group)Co.,Ltd. | 216,400.00 | 216,400.00 |
| ShenzhenChiwanInternationalFreightAgencyCo.,Ltd. | 89,076.85 | - |
| Total | 987,547,283.67 | 311,297,793.86 |
| Less:Provisionforcreditloss | - | - |
| Carryingamount | 987,547,283.67 | 311,297,793.86 |
(b)Significantdividendsreceivableagingover1year
Unit:RMB
| Item | Closingbalance | Reasonforoutstanding | Impairedornot |
| DongguanChiwanTerminalCo.,Ltd. | 135,254,038.80 | Inprocessingandexpectedtobereceivedin2021 | No |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | 15,707,120.00 | Inprocessingandexpectedtobereceivedin2021 | No |
| Total | 150,961,158.80 |
(3)Otherreceivables(a)Disclosureofotherreceivablesbyaging
Unit:RMB
| Aging | Closingbalance | ||
| Otherreceivables | Provisionforcreditloss | Proportionofprovision(%) | |
| Within1year | 247,415,841.53 | - | - |
| 1to2years | 763,898,867.62 | - | - |
| 2to3years | - | - | - |
| Over3years | 711,772.07 | 383,456.60 | 53.87 |
| Total | 1,012,026,481.22 | 383,456.60 | |
(b)ProvisionforcreditlossofotherreceivablesAspartoftheCompany'screditriskmanagement,theCompanyperformsinternalcreditratingoncustomers,anddeterminestheexpectedlossratioofotherreceivablesundereachcreditrating.Suchexpectedaveragelossratioisbasedonhistoricalactualimpairmentandtakingintoconsiderationofcurrentandexpectedfutureeconomicconditions.
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XIV.NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued
1.Otherreceivables-continued
(3)Otherreceivables-continued(b)Provisionforcreditlossofotherreceivables-continuedAt30June2021,thecreditriskandexpectedcreditlossofotherreceivablesbycategoriesofcustomersareasfollows:
Unit:RMB
| Creditrating | Expectedcreditlossratio(%) | Closingbalance | Openingbalance | ||||||
| 12-monthECL | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | Total | 12-monthECL | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | Total | ||
| A | 0.00-0.10 | 1,011,643,024.62 | - | - | 1,011,643,024.62 | 791,414,958.18 | - | - | 791,414,958.18 |
| B | 0.10-0.30 | - | - | - | - | - | - | - | - |
| C | 0.30-50.00 | - | - | - | - | - | - | - | - |
| D | 50.00-100.00 | - | - | 383,456.60 | 383,456.60 | - | - | 383,456.60 | 383,456.60 |
| Carryingamount | 1,011,643,024.62 | - | 383,456.60 | 1,012,026,481.22 | 791,414,958.18 | - | 383,456.60 | 791,798,414.78 | |
| Provisionforcreditloss | - | - | 383,456.60 | 383,456.60 | - | - | 383,456.60 | 383,456.60 | |
| Bookvalue | 1,011,643,024.62 | - | - | 1,011,643,024.62 | 791,414,958.18 | - | - | 791,414,958.18 | |
-151-
XIV.NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-
continued
1.Otherreceivables-continued
(3)Otherreceivables-continued(c)Changesinprovisionforcreditlossofotherreceivables
Unit:RMB
| Item | StageI | StageII | StageIII | Total |
| 12-monthECL | LifetimeECL(notcredit-impaired) | LifetimeECL(credit-impaired) | ||
| Balanceat1January2021 | - | - | 383,456.60 | 383,456.60 |
| Carryingamountofotherreceivablesat1January2021 | ||||
| --transfertostageII | - | - | - | - |
| --transfertostageIII | - | - | - | - |
| --transferbacktostageII | - | - | - | - |
| --transferbacktostageI | - | - | - | - |
| Provisionfortheperiod | - | - | - | - |
| Reversal | - | - | - | - |
| Transferoutduetoderecognitionoffinancialassets(includingdirectwrite-down) | - | - | - | - |
| Otherchanges | - | - | - | - |
| Balanceat30June2021 | - | - | 383,456.60 | 383,456.60 |
(d)Otherreceivablesbynature
Unit:RMB
| Item | Closingbalance | Openingbalance |
| Amountsduefromrelatedparties | 1,004,888,834.74 | 785,752,325.78 |
| Advances | 4,402,998.69 | 3,862,191.69 |
| Others | 2,734,647.79 | 2,183,897.31 |
| Total | 1,012,026,481.22 | 791,798,414.78 |
| Less:Provisionforcreditloss | 383,456.60 | 383,456.60 |
| Bookvalue | 1,011,643,024.62 | 791,414,958.18 |
(e)Thereisnootherreceivableswrite-offduringthisperiod.(f)Thetopthreebalancesofotherreceivablesclassifiedbydebtor
Unit:RMB
| Companyname | Nature | Closingbalance | Aging | Proportionoftheamounttothetotalotherreceivable(%) | Closingbalanceofprovisionforcreditloss |
| ShenzhenHaixingHarborDevelopmentCo.,Ltd. | Loantorelatedparties | 1,002,001,734.69 | Within1year,2-3years | 99.01 | - |
| ChinaMerchantsInternationalTechnologyCompanyLimited | Loantorelatedparties | 2,887,100.05 | Within1year | 0.29 | - |
| ChinaMerchants(Liaoning)PortDevelopmentCo.,Ltd. | Advancepaymentsforaccountcurrent | 2,500,000.00 | Within1year,1-2years | 0.25 | - |
| Total | 1,007,388,834.74 | 99.55 | - |
-152-
XIV.NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued
2.Long-termequityinvestments
Unit:RMB
| Investee | 1/1/2021 | Changesfortheperiod | 30/6/2021 | Closingbalanceofimpairmentprovision | |||||||
| Increase | Decrease | Investmentincomeunderequitymethod | Reconcilingitemsfromothercomprehensiveincome | Otherequitymovements | Announceddistributionofcashdividendsorprofit | Impairmentprovision | Others | ||||
| I.Subsidiary | |||||||||||
| ShenzhenChiwanInternationalFreightAgencyCo.,Ltd. | 5,500,000.00 | - | - | - | - | - | - | - | - | 5,500,000.00 | - |
| ShenzhenChiwanHarborContainerCo.Ltd. | 250,920,000.00 | - | - | - | - | - | - | - | - | 250,920,000.00 | - |
| ShenzhenChiwanPortDevelopmentCo.,Ltd. | 206,283,811.09 | - | - | - | - | - | - | - | - | 206,283,811.09 | - |
| ChiwanWharf(HongKong) | 1,070,000.00 | - | - | - | - | - | - | - | - | 1,070,000.00 | - |
| ShenzhenChiwanTugboatCo.,Ltd. | 24,000,000.00 | - | - | - | - | - | - | - | - | 24,000,000.00 | - |
| ChiwanContainerTerminalCo.,Ltd. | 421,023,199.85 | - | - | - | - | - | - | - | - | 421,023,199.85 | - |
| DongguanChiwanWarfCo.,Ltd. | 186,525,000.00 | - | - | - | - | - | - | - | - | 186,525,000.00 | - |
| DongguanChiwanTerminalCo.,Ltd. | 175,000,000.00 | - | - | - | - | - | - | - | - | 175,000,000.00 | - |
| ChiwanShipping(HongKong)Limited | 1,051,789.43 | - | - | - | - | - | - | - | - | 1,051,789.43 | - |
| CMPort(Note1) | 28,272,939,139.99 | 6,508,125.00 | - | - | - | - | - | - | - | 28,279,447,264.99 | - |
| ChinaMerchantsPort(Zhoushan)RoRoLogisticsCo.,Ltd. | 149,709,800.00 | - | - | - | - | - | - | - | - | 149,709,800.00 | - |
| Zhanjiangport(Note2) | 3,381,825,528.52 | - | - | - | - | - | - | - | - | 3,381,825,528.52 | - |
| ChinaMerchantsInternationalInformationTechnologyCo.,Ltd. | 23,451,570.97 | -2,890,495.95 | - | - | - | - | - | - | 20,561,075.02 | - | |
| Sub-total | 33,075,848,268.88 | 29,959,695.97 | -2,890,495.95 | - | - | - | - | - | - | 33,102,917,468.90 | - |
| II.Associate | |||||||||||
| ChinaMerchantsNortheastAsiaDevelopmentInvestmentCo.,Ltd.(Note3) | 1,007,786,285.71 | - | - | 6,331,456.35 | - | - | - | - | - | 1,014,117,742.06 | - |
| ChinaMerchantsBondedLogisticsCo.,Ltd. | 384,647,157.60 | - | - | 10,012,000.00 | 394,659,157.60 | ||||||
| InternationalInformationTechnologyCo.,Ltd | 23,833,710.97 | - | -1,875,000.00 | -385,535.90 | -35,889,379.28 | - | 14,316,222.97 | - | -18.76 | - | - |
| Others | 1,500,464,520.87 | 206,523,799.86 | - | 52,613,117.10 | - | - | -35,328,355.20 | - | - | 1,724,273,082.63 | - |
| Sub-total | 2,916,731,675.15 | 206,523,799.86 | -1,875,000.00 | 68,571,037.55 | -35,889,379.28 | - | -21,012,132.23 | - | -18.76 | 3,133,049,982.29 | - |
| III.Jointventure | - | ||||||||||
| YantaiPortGroupLaizhouPortCo.,Ltd. | 782,832,086.50 | - | - | 16,309,101.16 | - | - | -24,643,441.33 | - | - | 774,497,746.33 | - |
| ChinaMerchantsAntongLogisticsManagementCompany | 9,102,988.02 | - | - | 568,832.67 | - | - | - | - | - | 9,671,820.69 | - |
| FujianZhaohangLogisticsManagementPartnership(LimitedPartnership)(Note3) | 452,283,105.00 | - | - | 933,240.00 | - | - | - | - | - | 453,216,345.00 | - |
| Sub-total | 1,244,218,179.52 | - | - | 17,811,173.83 | - | - | -24,643,441.33 | - | - | 1,237,385,912.02 | - |
| Total | 37,236,798,123.55 | 236,483,495.83 | -4,765,495.95 | 86,382,211.38 | -35,889,379.28 | - | -45,655,573.56 | - | -18.76 | 37,473,353,363.21 | - |
Note1:SeeNoteVII.1fordetails.Note2:SeeNoteVII.1fordetails.
-153-
XIV.NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-
continued
3.Operatingincomeandoperatingcosts
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | ||
| Revenue | Cost | Revenue | Cost | |
| Principaloperating | - | 1,132,979.75 | - | 1,132,979.82 |
| Otheroperating | 471,974.86 | - | 94,339.62 | - |
| Total | 471,974.86 | 1,132,979.75 | 94,339.62 | 1,132,979.82 |
4.Investmentincome
(1)Detailsofinvestmentincome
Unit:RMB
| Item | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod |
| Incomefromlong-termequityinvestmentsundercostmethod | 912,418,115.63 | 1,286,567,145.53 |
| Long-termequityinvestmentsincomeunderequitymethod | 86,382,211.38 | 28,229,153.26 |
| Incomefromotherequityinstrumentsinvestments | 460,000.00 | 460,000.00 |
| Incomefromdebtinvestments | 6,017,068.48 | 11,375,616.44 |
| Total | 1,005,277,395.49 | 1,326,631,915.23 |
(2)Incomefromlong-termequityinvestmentsundercostmethod
Unit:RMB
| Investee | Amountincurredinthecurrentperiod | Amountincurredinthepriorperiod | Reasonforchangescomparingwithpriorperiod |
| CMPort | 652,351,928.94 | 745,060,561.87 | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanHarborContainerCo.Ltd. | 143,574,378.69 | 121,071,884.15 | Changesinprofitdistributionofinvestee |
| DongguanChiwanTerminalCo.,Ltd. | 48,020,128.82 | 59,036,979.32 | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanTugboatCo.,Ltd. | 30,409,076.03 | 25,604,356.23 | Changesinprofitdistributionofinvestee |
| ZhanjiangPort(Group)Co.,Ltd | 23,395,773.67 | - | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanPortDevelopmentCo.,Ltd. | 14,577,752.63 | - | Changesinprofitdistributionofinvestee |
| ShenzhenChiwanInternationalFreightAgencyCo.,Ltd. | 89,076.85 | 245,148.61 | Changesinprofitdistributionofinvestee |
| ChiwanContainerTerminalCo.,Ltd. | - | 275,313,936.56 | Changesinprofitdistributionofinvestee |
| DongguanChiwanWarfCo.,Ltd. | - | 60,234,278.79 | Changesinprofitdistributionofinvestee |
| Total | 912,418,115.63 | 1,286,567,145.53 |
CHINAMERCHANTSPORTGROUPCO.,LTD.SUPPLEMENTARYINFORMATIONFORTHEPERIODFROM1JANUARYTO30JUNE2021
1.BREAKDOWNOFNON-RECURRINGPROFITORLOSS
Unit:RMB
| Item | Amount | Remarks |
| Lossesondisposalofnon-currentassets | 4,731,273.76 | |
| Taxrefundsorreductionswithultraviresapprovalorwithoutofficialapprovaldocuments | - | |
| Governmentgrantsrecognizedinprofitorloss(exceptforgrantsthatarecloselyrelatedtotheCompany'sbusinessandareinamountsandquantitiesfixedinaccordancewiththenationalstandard) | 292,333,022.53 | |
| Moneylendingincomeearnedfromnon-financialinstitutionsinprofitorloss | 118,821,999.88 | |
| Theexcessofattributablefairvalueofidentifiablenetassetsovertheconsiderationpaidforsubsidiaries,associatesandjointventures | - | |
| Gainsorlossesonexchangeofnon-monetaryassets | - | |
| Gainsorlossesonentrustedinvestmentsorassetsmanagement | - | |
| Provisionofimpairmentlossesforeachassetduetoforcemajeure,e.g.naturaldisasters | - | |
| Gainsorlossesondebtrestructuring | - | |
| Businessrestructuringexpenses,e.g.,expenditureforlayoffofemployees,integrationexpenses,etc. | - | |
| Gainsorlossesrelatingtotheunfairportionintransactionswithunfairtransactionprice | - | |
| Netprofitorlossofsubsidiariesrecognizedasaresultofbusinesscombinationofenterprisesundercommoncontrolfromthebeginningoftheperioduptothebusinesscombinationdate | -3,255,790.50 | |
| Gainsorlossesarisingfromcontingenciesotherthanthoserelatedtonormaloperatingbusiness | - | |
| Gainsfromchangesoffairvalueofheld-for-tradingfinancialassets,derivativefinancialassets,othernon-currentfinancialassets,held-for-tradingfinancialliabilities,derivativefinancialliabilitiesotherthaneffectivehedgingoperationrelatingtotheCompany'snormaloperations,andtheinvestmentincomefromdisposaloftheaboveheld-for-tradingfinancialassets/financialliabilitiesandotherdebtinvestments | -488,532,866.45 | |
| Reversalofprovisionforaccountsreceivablethataretestedforcreditlossindividually | 94,099.17 | |
| Gainsorlossesonentrustedloans | - | |
| Gainsorlossesonchangesinthefairvalueofinvestmentpropertiesthataresubsequentlymeasuredusingthefairvaluemodel | - | |
| Effectsonprofitorlossofone-offadjustmenttoprofitorlossfortheperiodaccordingtotherequirementsbytaxlawsandaccountinglawsandregulations | - | |
| Custodianfeesearnedfromentrustedoperation | 471,698.11 | |
| Othernon-operatingincomeorexpensesotherthanabove | 19,007,039.27 | |
| Otherprofitorlossthatmeetsthedefinitionofnon-recurringprofitorloss(Note) | - | |
| Taxeffects | 74,697,555.98 | |
| Effectsofminorityinterest(aftertax) | 13,971,253.45 | |
| Total | 32,339,285.20 |
CHINAMERCHANTSPORTGROUPCO.,LTD.SUPPLEMENTARYINFORMATIONFORTHEPERIODFROM1JANUARYTO30JUNE2021
2.RETURNONNETASSETSANDEARNINGSPERSHARE("EPS")ThereturnonnetassetsandEPShavebeenpreparedbyShenzhenChiwanWharfCo.,Ltd.inaccordancewithInformationDisclosureandPresentationRulesforCompaniesMakingPublicOfferingNo.9-CalculationandDisclosureofReturnonNetAssetsandEarningsperShare(revisedin2010)issuedbyChinaSecuritiesRegulatoryCommission.
Unit:RMB
| Item | Weightedaveragereturnonnetassets(%) | EPS | |
| BasicEPS | DilutedEPS | ||
| Netprofitattributabletoordinaryshareholders | 4.4252 | 0.8724 | 0.8724 |
| Netprofitattributabletoordinaryshareholdersafterdeductingnon-recurringprofitorloss | 4.3383 | 0.8556 | 0.8556 |