China Merchants Port Group Co., Ltd. Annual Report 2018 CHINA MERCHANTS PORT GROUP CO., LTD. ANNUAL REPORT 2018
Date of Disclosure: 30 March 2019
China Merchants Port Group Co., Ltd. Annual Report 2018Chairman’s Statement
Dear shareholders,
I hereby present to you the annual report of China Merchants Port Group Co., Ltd. and its subsidiaries (the “Company”) for the year ended 31 December 2018. On behalf of the Board, I would like to express my sincere gratitude to all of you for your long-term support to the Company. On 26 December 2018, the Company completed the assets restructuring, the change of company name and its listing on the SZSE. Following the change of name to “China Merchants Port Group Co., Ltd.”, its strategic positioning underwent remarkable transformation and enhancement, and it evolved from a port operator in Chiwan Wharf, West Shenzhen Port Zone, to a globally leading port developer, investor and operator. As a result of the restructuring, the Company became a crucial vehicle for CMG to implement the “Belt and Road” Initiative promoted by China and the “Guangdong-Hong Kong-Macao Greater Bay Area” strategy. Serving not only as the headquarters ofCMG’s port sector, the Company is also the operating and management platform for the port assets and tier one capital of CMG, hence playing a key role in the consolidation and synergistic development ofCMG’s port assets.
Looking ahead, the Company aims to become a world-class integrated port service provider. With a focus on core port businesses, it will take part in international port investment, development and operation under the development model for the port ecosystem. Meanwhile, it will continue to expand along the value chain and establish an integrated port network service system that connects the world, so as to achieve scientific planning and balanced development on a global level. By offering top-notch and professional solutions, it will becomecustomers’ partner of choice for cooperation, which will create greater value for the Company, enhance return for shareholders, support local economies and global trade, and contribute to the healthy development of the port industry.
Review for the year
Since 2018, the global economy has in general maintained its growth momentum but on a shaky ground. The economic and political conditions have been increasingly complicated. Trade frictions provoked by the United States against numerous countries and regions worldwide have impacted corporate operating environment and financial market confidence, threatening the development of global economy and trade. In view of the macroeconomic condition with growing uncertainties over the development of global economy and trade, the Company has adhered to its
China Merchants Port Group Co., Ltd. Annual Report 2018 strategic directives, acted under the overall operation philosophy of “enhancing core capability, insisting on both quality and efficiency, capitalising on opportunities of this era and striving to become a global leading enterprise”, focused on the “five key priorities”, namely, homebase port development, ports consolidation, overseas expansion, integration of industry and finance and business innovation, pursued various designated tasks in a comprehensive and pragmatic manner, and basically achieved its operating indicators formulated at the beginning of last year.
In 2018, the overall operating performance of the Company was satisfactory with steady growth of business. In terms of port operation, the port projects of the Company delivered a container throughput totalled 109.73 million TEUs, up6.6% over last year. Looking into the regional performance, container throughput handled by theGroup’s ports in Mainland China totaled 81.39 million TEUs, up5.5% year-on-year. Ports in Hong Kong and Taiwan handled a combined container throughput of 7.67 million TEUs, up2.5% year-on-year, while overseas operations delivered a container throughput of 20.66 million TEUs, up12.9% year-on-year. Bulk cargo volume handled by theGroup’s ports increased by1.5% year-on-year to 540 million tonnes, among which theGroup’s ports in Mainland China handled a total bulk cargo volume of 530 million tonnes, representing an increase of1.6% year-on-year, while that of overseas ports decreased by7.7% from 2017 to 4.99 million tonnes. Among the major ports, SIPG handled a container throughput of 42.01 million TEUs, representing a year-on-year increase of4.4%, making it the largest port in the world for the ninth consecutive year. Container throughput handled in West Shenzhen Port Zone was 11.35 million TEUs, up1.5% year-on-year. In the overseas arena, Colombo International Container Terminals Limited (“CICT”) in Sri Lanka delivered a year-on-year growth of12.0% by handling a container throughput of 2.68 million TEUs.Lomé Container Terminal S.A. (“LCT”) in Togo handled a container throughput of 1.05 million TEUs, representing a growth of18.3% year-on-year. Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret AnonimŞirketi (“Kumport”) in Turkey handled a container throughput of 1.26 million TEUs, representing a growth of18.3% year-on-year. Terminal Link SAS acquired the port of Thessaloniki in Greece at the beginning of this year and it handled a container throughput of 13.64 million TEUs in the year, up8.6% year-on-year. From March to December 2018, TCPParticipações S.A. (“TCP”) in Brazil, the transaction of which was completed in February 2018, handled a container throughput of 0.69 million TEUs.
In terms of key priorities, significant progress has been made in overseas expansion. The delivery of overseas port projects, including TCP inParanaguá, Brazil and Port of Newcastle in Australia (the “Newcastle Port”), has been completed. The Djibouti International Free Trade Zone has successfully opened and garnered positive feedbacks. The consolidation of domestic ports has achieved remarkable breakthroughs. The Company has completed restructuring and is listed under a
China Merchants Port Group Co., Ltd. Annual Report 2018 new name. It has also been entrusted for the management of Liaoning Port Group Limited*(辽宁港口集团有限公司), which opened up for further in-depth cooperation in various aspects. The Company has been pursuing innovation development on multiple fronts as well. With regard to business innovation, the establishment of phase II of “E-port” has been completed and the commencement of various platforms integration and service building, such as the Electronic Data Interchange (“EDI”) platform system, call center , the big data platform and visualization platform, has enabled the full coverage of shipping companies, ship agents, customs brokers and tractor drivers. For technology innovation, the Company has been actively pushing forward projects, including RTG remote control, digitalized port construction and big data analysis for global containers. These projects have further improved the technological edges of the port industry. With respect to the cooperation between the industrial and financial sectors, the Company planned the establishment of the China Port Innovation Investment Fund(中国港口创新投资基金) which aimed to coordinate with the domestic influential port groups, innovate cooperation model for the industrial and financial sectors, and explore new technologies, models and mechanisms for the port ecosystem, thereby achieving collaboration and financial resource matching between various port groups and industries.
Outlook
In 2019, CMPort will commence the journey to become a world-class enterprise from a new starting point. The Company will firmly maintain a steady growth and at the same time achieve improvement with the focus on the strategic principle of “leveraging on its long-term strategy, tapping the current edges, driving through technology and embracing changes”. It will strengthen synergic cooperation externally and accelerate integrated development internally, make efforts to enhance various capabilities, improve risk prevention and control, establish quality development models and stay committed to becoming a globally leading enterprise. In 2019, the Company will focus on the following tasks:
Firstly, for the construction of homebase port, the Company will continue to strengthen its efforts in the construction of domestic and overseas homebase ports, striving to build the West Shenzhen homebase port into a world-class leading port. Furthermore, the Company will accelerate the enhancement of the hardware and software environment of its homebase port, plus theCMG’s internal and external resources, to establish a comprehensive service platform for the Pearl River Delta, thus strengthening the construction of fully automated and intelligent port. In addition, the Company will further promote the integration of operations with a view to improving quality and efficiency effectively and enhancing cost management. In terms of overseas homebase port, the
China Merchants Port Group Co., Ltd. Annual Report 2018 Company will leverage the synergic advantages of CICT and Hambantota port to create a leading regional port and international shipping centre in South Asia.
Secondly, for the consolidation of domestic ports, the Company will actively incorporate national strategies in its operation, with emphasis on opportunities brought about by the “Belt and Road” initiative, the coordinated development of Beijing, Tianjin and Hebei Province, the Yangtze River Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area, the opening up of Hainan, the revitalization of Northeast China and the integrated development of the Yangtze River Delta Zone.
Thirdly, for overseas business layout, the Company will strictly comply with assessment dimensions and principles for overseas ports projects. The Company will set out clear project priorities and conduct studies on its overseas network along the “East-West route, South-North route, regions along the Belt and Road Initiative”. It will continue to put more efforts in the study of global regional market and to establish and improve the regional market development and research database for East Africa, West Africa, South Asia, Europe, Latin America and Southeast Asia. It will also tap into the growth of the“China+” industry after shifting to the “Port-Park-City” model. Fourthly, for comprehensive port development, the Company will actively push ahead with the transformation from a terminal operator to a comprehensive port service provider. It will step up its efforts in promoting the “Port-Park-City” business model, and actively push forward the construction and development of the Djibouti International Free Trade Zone. The Company will continue to proactively explore the relevant comprehensive development cooperation projects in Togo; while for the Hambantota industrial port project, the Company will facilitate the preliminary work in relation to the introduction of investment and capital based on the improvement of the park development plan. Capitalizing development opportunities arising from of the Guangdong-Hong Kong-Macao Greater Bay Area, the Company will actively make progress on its land preparatory works in the Qianhai-Shekou Free Trade Zone by participating in the overall development thereof. Fifthly, for technology innovation, the Company will attach further importance to the unique role and fundamental position of technology-driven and innovation-oriented development. Also, the Company will create a top-tier port innovation ecosystem. Smart upgrade of terminals of which the Company is a controlling shareholder will be gradually achieved through technological innovation, enabling the Company to formulate a proposal for implementation of “RTG Remote Control” with its own features so as to support the transformation of Shenzhen Haixing Harbor Development Co., Ltd. ("Haixing")and smart upgrade of various terminals in the future.
Sixthly, for active quality and efficiency enhancement, the Company will continuously optimize its internal procedures and mechanisms to promote management reform and process
China Merchants Port Group Co., Ltd. Annual Report 2018 reengineering. The Company will focus its efforts on enhancing the level of refined operation and management of terminals of which it is a controlling shareholder, increasingly benchmarking its terminal management, reducing cost and improving efficiency, and generating income by saving costs, thereby creating values for shareholders.
In 2019, the risk of declining cyclical recovery momentum of the global economy will increase. Due to trade investment policies on “reverse globalization” and macroeconomic policy adjustments such as interest rate hike and tax reduction in developed countries, the growth of global trade will be under the intensifying pressure of an overall slowdown in the future. The Company will respond positively to challenges like the downshift of growth in global container seaborne freight volume, the subdued profitability of domestic ports, the increased competition for investment between the ports in emerging countries. Moreover, it will seize the opportunities presented by the Chinesegovernment’s support for import, accelerating consumption upgrade, the continuous promotion of policies regarding the development of the Guangdong-Hong Kong-Macao Greater Bay Area and the free trade port, the growth in regional trade, the relocation of the“China+” industry and port consolidation. By the above means, the Company will spare no effort to enhance operating results and reward shareholders with better investment return.
Fu Gangfeng Chairman
China Merchants Port Group Co., Ltd. Annual Report 2018 Part I Important Notes, Table of Contents and Definitions The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of China Merchants Port Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein.
Bai Jingtao, theCompany’s legal representative, Wen Ling, theCompany’s Chief Financial Officer, and Sun Ligan, the person-in-charge of the accounting organ hereby guarantee that the financial statements carried in this Report are factual, accurate and complete.
This Report has been approved at the 5th Meeting of the 9th Board of Directors of the Company. Due to other company affairs, Vice Chairman of the Board Deng Renjie and Director Song Dexing did not attend the meeting in person. But they have expressed their consent to this Report and authorized Director Bai Jingtao to attend the meeting on behalf of them, as well as to express opinion and sign the relevant documents.
Possible risks faced by the Company and countermeasures have been explained in “Part IV Operating Performance Discussion and Analysis” herein, which investors are kindly reminded to pay attention to. Any forward-looking statements such as future plans or development strategies mentioned herein shall not be considered as theCompany’s promises to investors. And investors are reminded to exercise caution when making investment decisions.
Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn have been designated by the Company for information disclosure. And all information about the Company shall be subject towhat’s disclosed on the aforesaid media. Investors are reminded to exercise caution when making investment decisions.
The Board has approved a final dividend plan as follows: based on theCompany’s total shares of 1,793,412,378, a cash dividend of RMB1.14 (tax inclusive) per 10 shares is to be distributed to shareholders, with no bonus issue from either profit or capital reserves.
This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail.
China Merchants Port Group Co., Ltd. Annual Report 2018 Table of Contents
Chairman’s Statement ................................................................................................ 1 Part I Important Notes, Table of Contents and Definitions .................................... 6 Part II Corporate Information and Key Financial Information ............................ 4 Part III. Business Highlights .................................................................................... 10 PART IV Performance Discussion and Analysis .................................................... 19 Part V Significant Events .......................................................................................... 45 Part VI Share Changes and Shareholder Information ........................................ 103 Part VII Preferred Shares ...................................................................................... 114 Part VIII Directors, Supervisors, Senior Management and Staff ...................... 114 Part IX Corporate Governance ............................................................................. 128 Part X Corporate Bonds ......................................................................................... 144 Section XI.Auditor’s Report (See attached) ......................................................... 145 Section XII. Documents Available for Reference ................................................. 146
China Merchants Port Group Co., Ltd. Annual Report 2018 Definitions
||||
|-|-|-|
|Term|Definition||
||China Merchants Port Group Co., Ltd., formerly known as||
|The “Company”, “CMPort” or “we”|||
||“Shenzhen Chiwan Wharf Holdings Limited”||
||Shenzhen Chiwan Wharf Holdings Limited (stock name: Chiwan||
|Chiwan Wharf|||
||Wharf, Chiwan Wharf-B; stock code: 000022, 200022)||
|CMG|China Merchants Group Co., Limited||
||China Merchants Group (H.K.) Limited, a CMG wholly-owned||
|CMG Hong Kong|||
||subsidiary in Hong Kong||
|CMID|China Merchants Investment Development Company Limited||
|CMPort Holdings|China Merchants Port Holdings Company Limited (00144.HK)||
|CMU|China Merchants Union(BVI) Limited||
||Broadford Global Limited, a wholly-owned subsidiary of CMG||
|Broadford Global|||
||Hong Kong||
||China Merchants Gangtong Development (Shenzhen) Co., Ltd., a||
|CMGD|||
||Broadford Global wholly-owned subsidiary in Shenzhen||
|CND Group|China Nanshan Development (Group) Inc.||
|CMSK|China Merchants Shekou Industrial Zone Holdings Co., Ltd.||
|Malai Storage|Shenzhen Malai Storage Co., Ltd.||
|KFEL|Keen Field Enterprises Limited||
||China Merchants Port (Zhoushan) RoRo Logistics Co., Ltd., with the||
|Zhoushan RoRo|name changed from “Zhoushan Archipelago New Area SinoTrans &||
||CSC RoRo Logistics Co., Ltd.” on 29 August 2018||
|Xinghai Terminal|Zhoushan Archipelago New Area Xinghai RoRo Terminal Co., Ltd.||
|SIPG|Shanghai International Port (Group) Co., Ltd.||
||Chiwan Container Terminal Co., Ltd.|, a majority-owned subsidiary|
|CCT|||
||of the Company||
||Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret Anonim||
|Kumport|||
||Şirketi||
|TCP|TCP Participações S.A.||
|CICT|Colombo International Container Terminals Ltd.||
|HIPG|Hambantota International Port Group||
|Haixing Harbor|Shenzhen Haixing Harbor Development Co., Ltd.||
|The “Assets Purchase via Share Offering”|Chiwan Wharf’s purchase of 1,313,541,560 ordinary CMPort||
|or the “Acquisition”|Holdings shares from CMID via share offering||
||The transaction plan includes three parts: (1) Chiwan Wharf intends||
||to issue A-shares to CMID for the acquisition of the 1,313,541,560||
||CMPort Holdings ordinary shares that CMID holds (approximately||
||39.51% of CMPort Holdings’ outstanding ordinary shares). (2) CMG||
|The “Transaction” or “Restructuring”|||
||Hong Kong and Chiwan Wharf signs an Acting in Concert||
||Agreement. According to the agreement, upon the completion of the||
||assets purchase via share offering, CMG Hong Kong shall vote||
||according to Chiwan Wharf’s opinion unconditionally on matters to||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||
|-|-|
||be voted on at CMPort Holdings’ general meetings in regard with the|
||voting right of the 753,793,751 CMPort Holdings ordinary shares|
||(approximately 22.67% of CMPort Holdings’ outstanding ordinary|
||shares) that CMG Hong Kong has been entrusted to exercise. (3)|
||Chiwan Wharf intends to raise matching funds of no more than|
||RMB4 billion from no more than 10 certain investors via an offering|
||of no more than 128,952,746 A-shares through enquiry.|
||State-Owned Assets Supervision and Administration Commission of|
|SASAC of the State Council||
||the State Council|
|CSRC|China Securities Regulation Commission|
|Shenzhen CSRC|Shenzhen Bureau of China Securities Regulatory Commission|
|SZSE|Shenzhen Stock Exchange|
|The “Company Law”|The Company Law of the People’s Republic of China|
|The “Securities Law”|The Securities Law of the People’s Republic of China|
|The “Articles of Association”|The Articles of Association of China Merchants Port Group Co., Ltd.|
|The “Stock Listing Rules”|The Stock Listing Rules of the Shenzhen Stock Exchange|
|The cninfo website|www.cninfo.com.cn|
|RTG|Rubber Tyre Gantry|
|E-Port|The unified electronic customer service platform|
|EDI|Electronic Data Interchange|
|The “Reporting Period” or “Current Period”|T he period from 1 January 2018 to 31 December 2018|
|TEU|Twenty Foot Equivalent Unit|

China Merchants Port Group Co., Ltd. Annual Report 2018 Part II Corporate Information and Key Financial Information I Corporate Information
|||||
|-|-|-|-|
||CM Port Group, CM Port|||
|Stock name||Stock code|001872, 201872|
||Group B|||
|Stock exchange for stock listing|Shenzhen Stock Exchange|||
|Company name in Chinese|招商局港口集团股份有限公司|||
|Abbr.|招商港口|||
|Company name in English (if any)|China Merchants Port Group Co., Ltd.|||
|Abbr. (if any)|CMPort|||
||Bai Jingtao|||
|Legal representative||||
||23-25/F, China Merchants Port Plaza, 1 Gongye 3rd Road, Zhaoshang|||
|Registered address||||
||Street, Nanshan, Shenzhen, PRC|||
|Zip code|518067|||
||23-25/F, China Merchants Port Plaza, 1 Gongye 3rd Road, Zhaoshang|||
|Office address||||
||Street, Nanshan, Shenzhen, PRC|||
|Zip code|518067|||
|Company website|http://www.cmp1872.com|||
|Email address|Cmpir@cmhk.com|||

II Contact Information
||||
|-|-|-|
||Board Secretary|Securities Representative|
|Name|Huang Chuanjing|Hu Jingjing and Chen Dan|
|Address|24/F, China Merchants Port Plaza, 1 Gongye 3rd Road, Zhaoshang Street,||
||Nanshan, Shenzhen, PRC||
|Tel.|+86 755 26828888|+86 755 26828888|
|Fax|+86 755 26886666|+86 755 26886666|
|Email address|Cmpir@cmhk.com|Cmpir@cmhk.com|

III Media for Information Disclosure and Place where this Report Is Lodged
|||
|-|-|
|Newspapers designated by the Company for information||
||Securities Times, Ta Kung Pao|
|disclosure||
|Website designated by CSRC for publication of this Report|http://www.cninfo.com.cn|
|Place where this Report is lodged|Board Office|

China Merchants Port Group Co., Ltd. Annual Report 2018 IV Change to Company Registered Information
|||
|-|-|
|Unified social credit code|9 1440300618832968J|
||On 14 December 2018, the Company changed its business scope registered with the|
||industrial and commercial administration. The new business scope includes:|
||construction, management and operation of ports and wharves; bonded warehousing|
||of various goods for import and export; development, construction and operation of|
||supporting parks in ports; loading, unloading, transshipment, warehousing and|
||transportation of international and domestic goods and processing of goods;|
||devanning and LCL operations, cleaning, repair, manufacturing and leasing of|
||containers; international freight forwarding; vehicle and ship leasing; the provision|
|Change to principal||
||of ship and port services including the provision of fuels, supplies and daily|
|activity of the Company||
||necessities for ships; ship towing (no operation using foreign ships); leasing and|
|since going public (if||
||repair services of port facilities, equipment and machinery; import and export of|
|any)||
||various goods and technologies on a self-operation or agency basis, excluding the|
||goods and technologies restricted or forbidden for import and export by the state;|
||port logistics and port information technology consulting services; technical|
||development and services in respect of modern logistics information systems; supply|
||chain management and related services; design of logistics plans; engineering project|
||management; development, research and consulting services in respect of port|
||engineering technologies. (In respect of any operations that require approval|
||according to law, the approval must be obtained before operation).|
||1. On 8 June 2018, as the ownership of 209,687,067 Chiwan Wharf shares formerly|
||held by CND Group and 161,190,933 Chiwan Wharf shares formerly held by Malai|
||Storage was officially transferred to CMGD, CMGD, holding 57.52% of the|
||Company’s outstanding share capital, became the controlling shareholder of the|
||Company. Meanwhile, CMG remains the actual controller of the Company.|
|Every change of||
|controlling shareholder|2. On 26 December 2018, the Company issued RMB-denominated ordinary shares|
|since incorporation (if|(A-shares) at RMB21.46/share to CMID for the acquisition of the 1,313,541,560|
|any)|CMPort Holdings ordinary shares that it held. Upon the Acquisition, the Company’s|
||total share capital has become 1,793,412,378 shares. Meanwhile, as Broadford|
||Global controls an 87.81% aggregated voting right in the Company (direct interests|
||and interests through CMID and CMGD), it is the direct controlling shareholder of|
||the Company. Meanwhile, CMG remains the actual controller of the Company.|

China Merchants Port Group Co., Ltd. Annual Report 2018 V Other Information
The independent audit firm hired by the Company:
|||
|-|-|
|Name|Deloitte Touche Tohmatsu Certified Public Accountants LLP|
|Office address|30/F, 222 Yan An Road East, Huangpu District, Shanghai, P.R.C.|
|Accountants writing||
||Huang Yue and Jiang Qishen|
|signatures||

The independent sponsor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
□ Applicable√ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in the Reporting Period:
|||
|-|-|
|Name|CITIC Securities Co., Ltd.|
||19/F, CITIC Securities Tower, 8 Zhongxin 3rd Road, Futian District, Shenzhen,|
|Office address||
||China|
|Participant representative|Chen Jianjian, Yang Jun and Huang Zihua|
|Period of supervision|From 26 December 2018 to 31 December 2019|

VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes□ No
The retrospective restatements in the table below are caused by changes to the accounting policies and a business combination under common control. For further information, please refer to “VI YoY Changes to Accounting Policies, Estimates and Methods” and “VIII YoY Changes to the Scope of the Consolidated Financial Statements” under “Part V Significant Events” in this Report.
|||||||||
|-|-|-|-|-|-|-|-|
||||||2018-over-201|||
||2018||2017|||2016||
||||||7 change|||
||Original|Restated|Original|Restated|Restated|Original|Restated|
|Operating revenue|2,274,934,530.82|9,703,394,622.58||7,544,635,284.96||||
||||2,456,218,834.63||28.61%|2,381,483,399.94|6,828,528,929.02|
|(RMB)||||||||
|Net profit attributable|403,711,043.83|1,090,418,910.77||2,365,214,907.45||||
|to the listed||||||||
||||504,495,064.39||-53.90%|532,376,492.97|2,041,683,125.35|
|company’s||||||||
|shareholders (RMB)||||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||||
|-|-|-|-|-|-|-|-|
|Net profit attributable||||||||
|to the listed||||||||
|company’s||||||||
||510,911,565.95|516,155,803.81|497,361,340.01|498,373,377.67|3.57%|529,198,593.98|526,660,998.71|
|shareholders before||||||||
|exceptional items||||||||
|(RMB)||||||||
|Net cash generated|737,784,730.57|4,288,575,424.84||3,475,037,036.28||||
|from/used in operating|||1,162,281,754.31||23.41%|1,121,032,625.07|3,049,363,117.24|
|activities (RMB)||||||||
|Basic earnings per|0.63|0.61||1.32||||
||||0.782||-53.79%|0.826|1.14|
|share (RMB/share)||||||||
|Diluted earnings per|0.63|0.61||1.32||||
||||0.782||-53.79%|0.826|1.14|
|share (RMB/share)||||||||
|Weighted average||||||||
||8.82%|3.88%|10.45%|10.24%|-6.36%|11.57%|9.21%|
|return on equity (%)||||||||
||||||Change of 31|||
||||||December|||
||31 December 2018||31 December 2017||2018 over 31|31 December 2016||
||||||December|||
||||||2017|||
||Original|Restated|Original|Restated|Restated|Original|Restated|
||8,036,053,848.17|128,018,084,415.68||109,135,164,260.01||||
|Total assets (RMB)|||7,975,470,563.32||17.30%|7,792,570,272.01|91,437,459,066.10|
|Equity attributable to|4,831,911,547.56|30,760,475,412.93||28,474,748,165.25||||
|the listed company’s|||4,922,969,405.92||8.03%|4 ,736,680,543.81|22,680,840,458.42|
|shareholders (RMB)||||||||

The total share capital at the end of the last trading session before the disclosure of this Report:
|||
|-|-|
|Total share capital at the end of the last trading session before the|1,793,412,378|
|disclosure of this Report (share)||
|Fully diluted earnings per share based on the latest total share capita|l0.608|
|above (RMB/share)||

Indicate by tick mark whether there are corporate bonds.
□ Yes√ No
Indicate by tick mark whether the past two years have both seen a deficit.
□ Yes√ No
China Merchants Port Group Co., Ltd. Annual Report 2018 VII Accounting Data Differences underChina’s Accounting Standards for Business Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign Accounting Standards
1. Net Profit and Equity under CAS and IFRS
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
No difference for the Reporting Period.
3. Reasons for Accounting Data Differences Above
□ Applicable√ Not applicable
VIII Key Financial Information by Quarter
Unit: RMB
||||||
|-|-|-|-|-|
||Q1|Q2|Q3|Q4|
|Operating revenue|2,172,750,441.44|2,499,587,599.28|2,589,330,353.39|2,441,726,228.47|
|Net profit attributable to the listed|||||
||381,903,088.64|238,135,317.01|276,846,536.50|193,533,968.62|
|company’s shareholders|||||
|Net profit attributable to the listed|||||
|company’s shareholders before|129,600,674.09|187,764,097.52|135,978,133.47|62,812,898.73|
|exceptional items|||||
|Net cash generated from/used in|||||
||488,161,711.35|1,312,573,007.36|1,315,345,336.41|1,172,495,369.72|
|operating activities|||||

The quarterly financial data in the table above or their summations differ from what have been disclosed in theCompany’s Q1, interim and Q3 reports, primarily because the financial data in those reports have been restated due to a business combination under common control.
IX Exceptional Gains and Losses
√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
|Item|2018|2017|2016|Note|
|Gain or loss on disposal of non-current assets|6,512,480.64||||
|||324,387.87|-123,667.77||
|(inclusive of impairment allowance write-offs)|||||
|Government subsidies charged to current profit|14,050,544.16||||
|or loss (exclusive of government subsidies|||||
|given in the Company’s ordinary course of||1,843,431.75|1,046,444.12||
|business at fixed quotas or amounts as per the|||||
|government’s uniform standards)|||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||
|-|-|-|-|-|
|Current profit or loss on subsidiaries obtained in|2,685,592,888.44|||Effect of abusinesscombination undercommon control|
|business combinations involving enterprises|||||
|||4,928,289,403.49|4,127,265,578.70||
|under common control from the|||||
|period-beginning to combination dates, net|||||
|Reversed portion of impairment allowance for|||||
|accounts receivable which are tested||4,238,993.78|||
|individually for impairment|||||
|Non-operating income and expense other than|-3,767,817.73||||
|||1,002,589.66|1,487,253.84||
|the above|||||
||-121,311,211.59|||Restructuringcosts in theCurrent Period|
|Other gains and losses that meet the definition|||||
|of exceptional gain/loss|||||
||3,010,149.89|||--|
|Less: Income tax effects||802,116.53|595,892.67||
|Non-controlling interests effects (net of|2,003,803,627.07||||
|||3,068,055,160.24|2,614,057,589.58||
|tax)|||||
||574,263,106.96|||--|
|Total||1,866,841,529.78|1,515,022,126.64||

 For the Reporting Period, the Company does not reclassify as recurrent any exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items.
China Merchants Port Group Co., Ltd. Annual Report 2018 Part III. Business Highlights
I. Main business of the Company during the reporting period
1. Main business scope and business models
The Company is principally engaged in the handling, warehousing and transportation of containers and bulk cargoes, as well as the provision of other ancillary services. It principally operates 24 container berths and 15 bulk cargo berths in the ports in West Shenzhen, 9
multi-purpose berths, 2 container berths, 2 bulk cargo berths and a berth for roll-on-roll-off vessels in Shantou Port, 4 multi-purpose berths in Shunde Port, 2 container berths and 6 bulk cargo berths in Zhangzhou Port, Xiamen, 3 container berths in Port of Colombo, Sri Lanka, 4 multi-purpose berths, 2 oil berths and 4 container berths in Hambantota Port, 3 container berths in Port ofLomé, Togo, and 3 container berths inParanaguá Port, Brazil. Moreover, the Company invests in container hubs in Shanghai and Ningbo and expands its layout to ports in South Asia, Africa, Europe, South America and Oceania.
The major business segments of China Merchants Port Group Co., Ltd. are as follows:
|||
|-|-|
|Businesssegments|Applications|
|Cargohandling andwarehousing|Container handling and warehousing: the Company provides ship berthing,loading and unloading services to ship companies, offers container storageservice to ship companies and cargo owners and provides overhead boxservices to tractor companies. The Company also engages in the businesses ofdivision or merger of cargoes in containers, container leasing and containermaintenance;Bulk cargo handling and warehousing: the Company is engaged in bulk cargohandling and transportation in port zones, as well as storage services in yards.The major types of cargoes handled include food, steel, woods andsandstones.|
|Ancillaryport-relatedservices|The ancillary port-related services of the Company mainly include tugboatberthing assistance and barge services at the arrival of ships to the ports,tallying in the course of cargo handling, and supply of shore power andfreshwater for vessels.|

China Merchants Port Group Co., Ltd. Annual Report 2018
|||
|-|-|
|Bondedlogisticsoperations|The Company provides various services for clients (including logisticscompanies, trading companies or cargo owners), for example, warehouse/yardleasing, loading and unloading in warehouses/yards, customs clearance anddivision or merger of cargoes at terminals. It also provides documentationservices for tractors arriving or leaving the bonded logistics parks.|

2. Development stage and cyclical characteristic of the industry in which the Company operates and its industry position during the reporting period
The port industry is a crucial cornerstone for national economic and social progress, and is closely linked to global economic and trade development. In 2018, the global economy maintained its growth in general. Nonetheless, the Company faced challenges arising from the divergence in recovery between various countries, trade frictions aggravated by trade protectionism, restructuring of global trade pattern, the slowdown in growth of global container shipping, the downshift of domestic port business, intensifying market competition, severe competition for investment in emerging markets overseas, technology advancement in the port and shipping industry and evolving business models.
In light of the increasing uncertainty in the global economic and trade environment, the growth of global container throughput slowed down in 2018. According to the statistics of Clarkson Research Services Limited, a maritime consulting firm, the global container throughput for coastal ports amounted to 201 million TEUs in 2018, representing a year-on-year increase of4.46%, which was down 0.66 percentage points as compared with 2017. Growing uncertainties in global trade development and rising fuel costs in general reduced the profitability of shipping companies. The performance of different shipping routes varied. The shipping volume of Asia-Europe routes decreased slightly due to the sluggish economies in the United Kingdom and other European countries. The Sino-US trade friction resulted in cargo delivery before schedule and supported the rapid growth of shipping volume of Trans-Pacific routes at5.88%. Driven by booming economic development in emerging Asian economies, the shipping volume of routes in the region maintained a relatively remarkable year-on-year increase of6.45%. With concentrated delivery of large vessels, the average scale of single ship expanded continuously. While Asia-Europe routes were dominated
by the three largest shipping alliances, the container feeder market saw development opportunities.
The growth rate of global port container throughput declined in 2018. According to the
China Merchants Port Group Co., Ltd. Annual Report 2018 statistics of Drewry Shipping Consultants Ltd., a maritime consulting firm, the global container port throughput amounted to 7.86 billion TEUs in 2018, up5.3% year-on-year, while the growth rate decreased by 1.2percentage points as compared with 2017. In terms of market share by container throughput, the top 3 regions in order are China (including Hong Kong), Europe and Southeast Asia, and the top 3 fastest growing regions in order are South Asia, Southeast Asia and Oceania. The growth rate of PRC container port throughput decreased and the development of different ports varied. According to the statistics from National Bureau of Statistics of China, the container throughput handled by PRC ports of significant scale was 249.55 million TEUs in 2018, representing a growth of5.2% compared with the same period last year , growing slower than the same period in 2017.
The Company is the largest global leading port developer, investor and operator in the PRC, with a comprehensive port network at major hub locations along coastal China. It has also established presence in South Asia, Africa, Europe, Mediterranean, Oceania and South America. By its proactive, sound and efficient operating style, the Company capitalises on its global port portfolio, professional management experience, the self-developed state-of-the-art terminal operation system and integrated logistics management platform for exports and imports, thereby providing its customers with timely and efficient port and maritime logistics services along with comprehensive and modern integrated logistics solutions. In addition, the Company also invests in bonded logistics operation and launches integrated park development business for the extension of the port value chain, which allows it to create greater value through the synergies of the existing terminal network.
China Merchants Port Group Co., Ltd. Annual Report 2018 II Significant Changes in Major Assets
1. Significant Changes in Major Assets
|||||
|-|-|-|-|
||Major assets||Main reason for significant changes|
|Equity assets||1. On 26 January 2018, the Second Extraordinary Meeting of the Ninth Board of Directors ofthe Company approved the Proposal on Capital Increase to Zhoushan Archipelago New AreaSinoTrans & CSC RoRo Logistics Co., Ltd. On the same day, the Company together withZhoushan Blue Ocean Investment Co., Ltd. (hereafter referred to as “Blue OceanInvestment”), CSC RoRo Logistics Company Limited (hereafter referred to as “CSC”),China Merchants Port (Zhoushan) RoRo Logistics Co., Ltd. (hereafter referred to as“Zhoushan RoRo”) and Zhoushan Archipelago New Area Xinghai RoRo Terminal Co., Ltd.( hereafter referred to as “Xinghai Terminal”) signed the Agreement on Capital Increase toZhoushan Archipelago New Area SinoTrans & CSC RoRo Logistics Co., Ltd.. According tothe agreement, the Company contributed RMB149.7098 million in cash to hold 51% equityin Zhoushan RoRo, and the registered capital of Zhoushan RoRo increased from RMB60million to RMB173.0786 million, and Zhoushan RoRo owned 100% stake of XinghaiTerminal, which made Xinghai Terminal a wholly owned subsidiary of Zhoushan RoRo. InMay 2018, the Company paid all the increased capital to Zhoushan RoRo. On 29 August2018, Zhoushan RoRo completed the formalities for the change of its directors, supervisorsand senior management with the industrial and commercial administration. As such,Zhoushan RoRo has officially become a majority-owned subsidiary of the Company. Forfurther information, see the Announcement on an External Investment & Related-PartyTransaction (Announcement No.: 2018-007) published on the Securities Times, Ta Kun Pao(HK) and www.cninfo.com.cn on 27 January 2018.2. On 5 February 2018, the Proposal on Signing the Supplementary Agreement II to theMedia Port Investments Limited Shareholder Agreement was approved at the 3rdExtraordinary Meeting of the Company’s 9th Board of Directors of 2018. On the same day,the Supplementary Agreement II was signed by Chiwan Wharf, CMPort Holdings, FattenInvestments Limited and Media Port Investments Limited as a further supplement to theMedia Port Investments Limited Shareholder Agreement signed on 30 September 2002.According to the Supplementary Agreement II, upon the completion of the transfer of acombined stake of 66.10% in Chiwan Wharf from CND Group, Malai Storage and KFEL toCMGD and Broadford Global, the Company’s control over Media Port Investments Limitedwill cease. On 8 June 2018, when the relevant equity transfer formalities were completed, theCompany excluded Shenzhen Mawan Port Services Co., Ltd., Shenzhen Mawan Wharf Co.,Ltd. and Shenzhen Mawan Warehouse & Terminals Co., Ltd. from its consolidated financialstatements. The announcement (No. 2018-013) on the related-party transactions arising fromthe signed Supplementary Agreement II has been disclosed on Securities Times, Ta Kung Pao||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|||and www.cninfo.com.cn on 7 February 2018.3. On 6 February 2018, CMPort Holdings, China Merchants Union (BVI) Limited (“CMU”,a major shareholder of CMPort Holdings and the liaison of CMG) and Gold NewcastleProperty Pty Holding Limited (“Gold Newcastle”, a wholly-owned subsidiary of CMU)entered into an acquisition agreement. According to the agreement, CMU and GoldNewcastle agreed to sell, for the total consideration of AUD607.5 million (approximatelyHK$3.809 billion), their aggregate interests of 50% in the Port of Newcastle (includingshareholder loans of AUD162.5 million) to CMPort Holdings or its wholly-owned subsidiary.And the remaining 50% interest in the Port of Newcastle would be held by a third-party, TIFInvestment Trust.4. On 13 December 2018, the Proposal on the Incorporation of China Merchants HainanDevelopment & Investment Co., Ltd. together with Related Parties was approved at theSecond Extraordinary General Meeting of 2018. Chiwan Wharf Holdings (Hong Kong)Limited (a wholly-owned subsidiary of the Company), together with related parties of ChinaMerchants Holdings (Hong Kong) Company Limited, Jumbo Pacific Holdings Limited,China Merchants Expressway Network Technology Holdings Co., Ltd., China MerchantsIndustry Investment Limited and SinoTrans (HK) Logistics Limited, incorporated ChinaMerchants Hainan Development & Investment Co., Ltd. as an important investment platformin the Hainan Province for all the parties. The new joint venture has a registered capital ofRMB3.5 billion, of which Chiwan Wharf Holdings (Hong Kong) Limited subscribes forRMB525 million, representing a stake of 15%.5. On 24 December 2018, the Company disclosed the Report on the Implementation Progressof the Assets Purchase via Share Offering and the Matching Fund Raising & theRelated-Party Transaction & the Listing of the New Shares. The Company issued A-shares toCMID for the acquisition of the 1,313,541,560 ordinary CMPort Holdings shares that it held(accounting for approximately 39.45% of CMPort Holdings’ outstanding ordinary shares),with the transaction price being RMB24.65 billion. According to the offering price ofRMB21.46/share, the Company issued a total of 1,148,648,648 A-shares to CMID. On 26December, the Company held the Restructuring & Name Change Ceremony at the ShenzhenStock Exchange, changing its stock name from “Chiwan Wharf, Chiwan Wharf-B” to “CM PortGroup, CM Port Group B”, its stock code from “000022, 200022” to “001872, 201872”.|
|Constructionin progress||Construction in progress amounted to RMB5.499 billion as at 31 December 2018, up byRMB3.191 billion from the beginning amount of RMB2.308 billion, primarily driven by theadding of new subsidiaries to the consolidated financial statements and a higher expense onwharf projects. To be specific, the HIPG wharf construction project contributed an increase ofRMB1.334 billion, the TCP berth expansion project contributed RMB0.59 billion and theShantou Port Guangdong-Macau Phase II project RMB0.524 billion.|
||Entrusted|1. On 23 August 2017, the Proposal on Signing The Agreement on Equity Management|

China Merchants Port Group Co., Ltd. Annual Report 2018
|||
|-|-|
|assets|Entrustment with China Merchants Port Holdings Company Limited (CMPort Holdings) wasapproved at the 2nd Meeting of the 9th Board of Chiwan Wharf. On the same day, theagreement was signed to let Chiwan Wharf manage, in CMPort Holdings’ trust, part of theshareholder and other rights in relation to the 80% stake in Mega Shekou ContainerTerminals Limited, which is held directly by CMPort Holdings. As CMPort Holdings hasceased its control over Chiwan Wharf from 8 June 2018, as per the aforesaid entrustmentagreement, Chiwan Wharf’s custodianship of the shareholder and other rights in relation tothe 80% stake in Mega Shekou Container Terminals Limited has automatically ended. Theannouncement (No. 2017-035) on the related transaction arising from the signed entrustmentcontract has been disclosed on Securities Times, Ta Kung Pao and www.cninfo.com.cn on 25August 2017.2. On 13 December 2018, the Proposal on the Company and China Merchants (Liaoning)Port Development Co., Ltd. Signing the Custody Agreement Regarding Equity Interests inLiaoning Port Group Co., Ltd. was approved at the 10th Extraordinary Meeting of the 9thBoard of Directors of 2018 of the Company. As such, the Company was agreed to sign thesaid agreement with China Merchants (Liaoning) Port Development Co., Ltd., an indirectlywholly-owned subsidiary of CMG. According to the agreement, the Company will manage,in the trust of China Merchants (Liaoning) Port Development Co., Ltd., the 49.9% interest inLiaoning Port Group Co., Ltd. that China Merchants (Liaoning) Port Development Co., Ltd.is currently holding.|

2. Major Assets Overseas
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Asset||Source|Asset value(RMB’0,000)|Location|Mana|Controlmeasures toprotect assetsafety|Returngenerated(RMB’0,000)|As % oftheCompany’s equity|Materialimpairment risk(yes/no)|
||||||geme|||||
||||||nt|||||
||||||mode|||||
||||||l|||||
|Equityassets||Acquired viashareoffering|12,236,421.18|HongKong|Majo|Appointingdirectors,supervisorsand seniormanagement|650,649.71|93.16%|No|
||||||rity-o|||||
||||||wned|||||
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||Other|N/A||||||||
||inform|||||||||
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China Merchants Port Group Co., Ltd. Annual Report 2018 III. Core competitiveness analysis
1.Active implementation of the key “Belt and Road” initiative with leverage on its global port network
As an important carrier for domestic and overseas port investment and operation of CMG, the Company seized the policy opportunities of the key elopment Co., Ltd., an indirectly o actively build a global port network and make investments in global resources. In recent years, through mergers, acquisitions and restructuring, along with the renovation of old ports and construction of new ports, the Company has become a modern port chain with global coverage and actively pushed forward the establishment of the “Silk Road Economic Belt” and “21st-Century Maritime Silk Road”.
After years of overseas development, CMPort has developed the port industries across Southeast Asia, South Asia, Africa, Europe, Oceania, etc. Among which, its port network spreads over 18 countries with most ports locating in important port areas of countries along the “Belt and Road” initiative.
The Company aims at eas development, CMPort has developed the port iive continents”. As both the shipping and port sectors gradually shifted to forming alliances, the Company actively integrated its domestic and overseas port assets and capitalised on its relatively complete global port network to provide customers with comprehensive port logistics service solutions, which created its unique competitive strength. At the same time, the diversified investment and operation of port assets have also effectively enhanced its capabilities to resist risks of industry fluctuations and trade fictions.
2. Sound shareholder background
CMG is a key state-owned enterprise under the direct administration of the PRC central government. Headquartered in Hong Kong, it is an integrated enterprise with diversified businesses and one of the four major Chinese enterprises in Hong Kong. Currently, CMG is mainly engaged in three core industries namely transportation, finance and real estate, while focusing on four key sectors including infrastructure and equipment manufacturing, logistics and shipping, integrated finance and comprehensive development of cities and parks. CMG has been rated as a Grade A enterprise in
China Merchants Port Group Co., Ltd. Annual Report 2018 the Operating Results Assessment of the State-owned Assets Supervision and Administration Commission of the State Council for 14 consecutive years and is a central state-owned enterprise that owns two Fortune 500 companies.
Being a crucial player and facilitator of the national State-owned Assets Supervision and Administration Commission of the State Council for 14 consecutive years atively complete network of overseas port, logistics, finance and park business. The sound shareholder background and ample domestic and overseas resources of CMG have provided strong support to CMPort for creating a global port cooperation platform with international vision and global expansion capabilities.
3. Innovative business development model
Taking port business as the core and leveraging the synergy of different port zones as well as city-industry integration, the Company is actively exploring and facilitating the comprehensive port development model of “Port-Park-City”. Based on the traditional loading and unloading and ancillary services for ports, the Company further expanded various value-added port services to the ports and port cities in which it operates. By gathering talents, information, funds and commodities, the Company continued to expand its business development and regional coverage, thereby driving urban upgrade and development.
Currently, the Company has participated in and pushed forwarded integrated regional development and construction in various overseas regions under the port-oriented approach, where it has made some progress with initial achievements. The innovative business development model helps foster new profit growth points for the Company.
4. Extensive experience in professional port management with sound and efficient operating style The Company always adheres to the proactive, sound and efficient operating style. Capitalising on its global portfolio for port asset and resource allocation, it is committed to providing customers with timely and efficient port and maritime logistics services and thus becoming an important gateway for thecountry’s foreign trade. At the same time, the Company also made an extensive investment in bonded logistics business to expand its port value chain. Taking advantages of the synergies of its existing terminal network, the Company created values for both its customers and
China Merchants Port Group Co., Ltd. Annual Report 2018 shareholders.
The Company has earned itself good reputation across the industry by leveraging the professional management experience accumulated for years, its self-developed global leading port operating system and integrated logistics management platform for import and export, its extensive maritime logistics support system and all-rounded modern integrated logistics solutions, its high-quality engineering management and reliable service offerings.
China Merchants Port Group Co., Ltd. Annual Report 2018 PART IV Performance Discussion and Analysis
I. Summary
1. External Environment Analysis
In 2018, the global economy continued to grow at a moderate pace. However, the growth rates of major economies have almost peaked while certain emerging markets and countries were facing financial instability, demonstrating intensified uneven growth trend among different economies. Currently, with the setback in multilateral trading system, the landscape of international trade is restructuring, which has facilitated rapid development of regional trade agreements. According to the latest “atest , the global economy continued to grow at a mornational Monetary Fund (“IMF” MFest , the global economy continued to grow at a mornational Monetary Fund (“growth rates of major economies have almost peaked while certain emerging markets and countries were facing f, down by 0.1 percentage point as compared to that of 2017, while emerging markets and developing economies grew at4.6%, respectively, down by 0.1 percentage point as compared to that of 2017. Total global trade volume (including goods and services) grew by4.0%, representing a decrease of 1.3 percentage points as compared to that of 2017.
In 2018,China’s economic growth was6.6%, representing a decrease of 0.2 percentage point over 2017. Despite the complicated international environment, China insisted on pursuing progress while maintaining stability and the overall economic development remained stable within a reasonable range. While strenuously promoting the supply-side structural reform, the PRC government continued to innovate and improve its macroeconomic control policies, striving to cultivate and develop innovative industries. The Chinese economy has shifted from the rapid growth phase to quality development phase with the driving force of innovation further increased and the upgrade and development of consumption and industry structures progressed at a faster pace. Amid the overall global trade growth, according to the statistics of the General Administration of Customs,China’s total foreign trade import and export value amounted to RMB30.51 trillion in 2018, representing a year-on-year increase of9.7%, among which the total export value was RMB16.42 trillion, indicating a7.1% year-on-year increase, while total import value was RMB14.09 trillion, reflecting a year-on-year increase of12.9%. In particular, the potential of trade cooperation between China and those countries along the “Belt and Road” initiative is unleashing, leading to an increase in import and export value of13.3%, which is higher than the overall growth rate.
China Merchants Port Group Co., Ltd. Annual Report 2018 Driven by the growth in global economy and trade, the global port business generally showed moderate growth in 2018; and the growth rate of port business in China remained steady since the first quarter. According to the data published by National Bureau of Statistics of China, the container throughput handled by Chinese ports of significant scale totalled 250 million TEUs in 2018, representing an increase of5.2% year-on-year.
2. Port Business Review
In 2018, theCompany’s ports handled a total container throughput of 109.73 million TEUs, up by6.6% year-on-year, among which the ports in Mainland China contributed container throughput of 81.39 million TEUs, indicating an increase of5.5% year-on-year, which was mainly driven by steady recovery of the MainlandChina’s economy and improvement of import and export trade. TheCompany’s operations in Hong Kong and Taiwan contributed an aggregate container throughput of 7.67 million TEUs, representing a growth of2.5% as compared with the same period last year. Benefited from the rapid growth of the ports operation of CICT in Sri Lanka, LCT in Togo and Kumport in Turkey, a total container throughput handled by theCompany’s overseas ports grew by12.9% year-on-year to 20.66 million TEUs. Bulk cargo volume handled by theGroup’s ports increased by1.5% year-on-year to 504 million tonnes, of which theGroup’s ports in Mainland China handled a total bulk cargo volume of 530 million tonnes, representing an increase of1.6% year-on-year.
Pearl River Delta region
In the Pearl River Delta region, theGroup’s terminals in West Shenzhen Port Zone handled a container throughput of 11.35 million TEUs, up by1.5% year-on-year. Chu Kong River Trade Terminal Co., Ltd. handled a total container throughput of 1.17 million TEUs, down by13.3% year-on-year. Bulk cargo volume handled by the West Shenzhen Port Zone amounted to 18.03 million tonnes, down by17.3% year-on-year, mainly due to the decrease in business volume as a result of the upgrade and renovation project of Haixing Port. With further release of production capacity, Dongguan Machong Terminal handled bulk cargo volume of 13.23 million tonnes during the period, representing an increase of3.4% year-on-year.
Yangtze River Delta region
Shanghai International Port (Group) Co., Ltd. (eSIPG”IPGghai International Port (Group) Co., Ltd. (eon TEUs, up by4.4% year-on-year, which was mainly driven by the increase in number of shipping routes due to reorganisation of shippingcompanies’ alliances, and the release of production capacity from the commencement of operation of phase IV ofSIPG’s fully automated port in Yangshan since December 2017. Bulk cargo volume handled during the year decreased by
China Merchants Port Group Co., Ltd. Annual Report 20188.3% year-on-year to 150 million tonnes, mainly attributed to the decrease in coal unloaded amount after adjustments made against the structure of bulk cargo source by SIPG. Ningbo Daxie China Merchants International Terminals Co., Ltd. handled a container throughput of 3.16 million TEUs, representing an increase of5.1% year-on-year, which was mainly benefited from the adjustment of certain shipping routes.
Bohai Rim region
Dalian Port (PDA) Company Limited handled a container throughput of 11.11 million TEUs and bulk cargo volume of 135 million tonnes, representing an increase of3.3% and4.3% year-on-year respectively. Qingdao Qianwan United Container Terminal Co., Ltd. handled a container throughput of 6.93 million TEUs, representing an increase of11.1% year-on-year. Qingdao Qianwan West Port United Terminal Co., Ltd. handled bulk cargo volume of 15.54 million tonnes, representing an increase of18.4% year-on-year. Qingdao Port Dongjiakou Ore Terminal Co., Ltd. handled bulk cargo volume of 57.36 million tonnes, indicating an increase of3.6% year-on-year. Laizhou Harbour Affairs(莱州港务) handled bulk cargo volume of 22.75 million TEUs, representing an increase of4.7% year-on-year. Tianjin Five Continents International Container Terminals Co., Ltd. handled a total container throughput of 2.72 million TEUs, representing an increase of3.4% year-on-year.
South-East region of Mainland China
Zhangzhou China Merchants Port Co., Ltd. (“ZCMP”), located in Xiamen Bay Economic Zone, handled a container throughput of 0.457 million TEUs, increased by13.9% year-on-year, which was mainly benefited from the increase in domestic shipping routes. With the recovery of the production capacity of wood processing and iron ore fines industries in the hinterland of ZCMP, bulk cargo volume handled by ZCMP amounted to 14.32 million tonnes, up by37.4% year-on-year. Shantou China Merchants Port Group Co., Ltd., which was acquired in August 2017, handled a container throughput of 1.29 million TEUs and bulk cargo volume of 9.23 million tonnes.
South-West region of Mainland China
Zhanjiang Port (Group) Co., Ltd. handled a container throughput of 0.98 million TEUs, up by9.7% year-on-year; and a bulk cargo volume of 91.87 million tonnes, up by1.8% year-on-year. Hong Kong and Taiwan
The total container throughput handled by ports in Hong Kong dropped by5.7% year-on-year, of which the container throughput handled by the ports in Kwai Tsing area decreased by4.7% year-on-year. Modern Terminals Limited and China Merchants Container Services Limited delivered an aggregate container throughput of 5.93 million TEUs, up by2.5% year-on-year, which
China Merchants Port Group Co., Ltd. Annual Report 2018 outperformed the overall market of Hong Kong. Kao Ming Container Terminal Corporation in Kaohsiung handled a total container throughput of 1.75 million TEUs, representing an increase of2.8% year-on-year.
Overseas operation
In 2018, a total container throughput handled by theCompany’s overseas operations increased by12.9% year-on-year to 20.66 million TEUs, among which container throughput handled by CICT in Sri Lanka rose by12.0% year-on-year to 2.68 million TEUs. Container throughput handled by LCT in Togo increased by18.3% year-on-year to 1.05 million TEUs. Container throughput handled by Tin-Can Island Container Terminal Limited (referred to as TICT) in Nigeria was 0.48 million TEUs, representing an increase of2.4% year-on-year. Container throughput handled by Port de Djibouti S.A. (referred to as PDSA) in Djibouti amounted to 0.86 million TEUs, down by7.5% year-on-year, mainly attributed to the decrease in transshipment volume to Ethiopia. Terminal Link SAS, which acquired the port of Thessaloniki in Greece at the beginning of the year, handled container throughput of 13.64 million TEUs, representing an increase of8.6% year-on year. Container throughput handled by Kumport in Turkey increased by18.3% year-on-year to 1.26 million TEUs. In February 2018, the acquisition of TCP in Brazil was officially completed. TCP handled a container throughput of 0.69 million TEUs from March to December.
3. Implementation of business plan during the reporting period
During the reporting period, adhering to the working principles of “farsighted and down-to-earth” and “establishing integrated systems and building core competitiveness”, the Company continued to maintain its strategic strength and remained committed to the strategic focus of domestic and overseas development and innovation and achieved major breakthroughs in five aspects, namely the development of homebase port, port consolidation, overseas expansion, comprehensive development and business innovation. Over the past year, the Company actively implemented its key tasks and maintained a steady growth in the core business and operating results of theCompany’s ports.
Regarding the development of its homebase ports, Tonggu Channel project in West Shenzhen Port Zone was completed which enabled 200,000-tonnes mega vessels to call. Moreover, the renovation project of Haixing Port progressed as scheduled while the construction proposal of “Smart Port” has been proved and already entered into the implementation stage. In accordance with the concept of “strong synergy for high throughput”, the Group has facilitated the cooperation between West Shenzhen Port Zone and river terminals in the Pearl River Delta and achieved
China Merchants Port Group Co., Ltd. Annual Report 2018 preliminary results.
In terms of port consolidation, the Company has established a strategic layout with a focus on one was completed which enang Kong-Macao Bay Area, connecting regions along Belt and Road Initiatives with a broad global network coverage” through strategic reconstruction, which has become the platform for managing theCMG’s port business and capital operation. In Bohai Rim, the entrusted management arrangement of Liaoning Port Group was completed.
As for overseas expansion, by seizing the opportunities arising from the major initiative of “Belt and Road” and the transfer of international production, the Company actively grasped the investment opportunities in ports, logistics and related infrastructure. The Company completed the acquisitions of TCP Terminal in Brazil, South America and Port of Newcastle in Australia, Oceania in 2018, realising its full coverage in six continents and further optimising its global port network. In terms of comprehensive development, the Company actively explored and promoted the “Port-Park-City” comprehensive development model and achieved milestone progress. Djibouti International Free Trade Zone was officially opened in July 2018 and received good response. The comprehensive development project of Hambantota Port in Sri Lanka has completed the initial overall conceptual planning and has been actively developing the wheeled and bulk cargo business, demonstrating a sound business development trend.
With regard to innovative development, the Group actively pushed forward the “digitalised strategy” through the philosophy of “bringing influence through technology innovation, facilitating expansion by business innovation, enhancing quality and efficiency by integration innovation, and planning future by mechanism innovation” in exploring the construction of the port ecosystem. In 2018, the Company completed the E-Port project, RTG Remote Control project and Pearl River Delta (“PRD”) NETWORK project in West Shenzhen Port Zone with the utilisation of digital port technology, automated terminal technology, artificial intelligence application and big data analysis application. In terms of integrated cooperation model of industry with elements of finance, the Company planned for the establishment of the China Port Innovation Investment Fund(中国港口创新投资基金) which aimed to coordinate with the domestic influential port groups, innovate integrated cooperation model of industry with elements of finance, and explore new technologies, models and mechanisms for the port ecosystem, thereby achieving collaboration and resource matching between various port groups and the invested industries.
China Merchants Port Group Co., Ltd. Annual Report 2018 II Core Business Analysis
1. Overview
Changes in key financial indicators in the Reporting Period are as follows:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item||2018|2017||Change|Reason for the change|
||||||(%)||
|Operating revenue||9,703,394,622.58|7,544,635,284.96|28.61%||The adding of CMPort Holdings tothe consolidated financial statementsfor the current year|
|Cost of sales||5,739,241,395.87|4,710,312,660.51|21.84%||The adding of CMPort Holdings tothe consolidated financial statementsfor the current year|
|Administrative expense||1,251,865,675.45|853,900,889.90|46.61%||The restructuring costs and the addingof CMPort Holdings to theconsolidated financial statements forthe current year|
|Finance costs||1,643,418,102.95|955,406,648.46|72.01%||A higher interest expense as a resultof more interest-bearing debt, as wellas a greater exchange loss, net causedby exchange rate fluctuations|
||Net cash generated|4,288,575,424.84|3,475,037,036.28|23.41%||-|
||from/used in operating||||||
||activities||||||

2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
|||||||
|-|-|-|-|-|-|
||2018||2017|||
|||As % of total||As % of total||
||||||Change (%)|
||Operating revenue|operating revenue|Operating revenue|operating revenue||
|||(%)||(%)||
|Total|9,703,394,622.58|100%|7,544,635,284.96|100%|28.61%|
|By operating division||||||
|Port operations|9,184,527,309.09|94.65%|7,105,017,045.51|94.17%|29.27%|
|Bonded logistics service|386,269,027.02|3.98%|355,133,637.25|4.71%|8.77%|
|Other|132,598,286.47|1.37%|84,484,602.20|1.12%|56.95%|
|By operating segment||||||
|Mainland China, Hong Kong||||||
||6,635,924,788.34|68.39%|6,036,330,920.53|80.01%|9.93%|
|and Taiwan||||||
|Other countries and regions|3,067,469,834.24|31.61%|1,508,304,364.43|19.99%|103.37%|

 (2) Operating Division, Product Category or Operating Segment Contributing over10% of Operating Revenue or Operating Profit
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||Gross|YoY change|YoY change|YoY change in|
||Operating revenue|Cost of sales|profit|in operating|in cost of|gross profit|
||||margin|revenue (%)|sales (%)|margin (%)|
|By operating division|||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|Port operations|9,184,527,309.09|5,303,286,893.31|42.26%|29.27%|23.38%|5.81%|
|By operating segment|||||||
|Mainland China, Hong Kong|6,635,924,788.34|4,216,939,216.81|36.45%|9.93%|6.56%|2.90%|
|and Taiwan|||||||
|Other countries and regions|3,067,469,834.24|1,522,302,179.06|50.37%|103.37%|102.15%|0.30%|

 (3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□ Yes√ No
(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period
□ Applicable√ Not applicable
(5) Breakdown of Cost of Sales
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||2018||2017|||
|||||||Change|
|Operating division|Item||As % of total cost||As % of total cost||
|||Cost of sales||Cost of sales||(%)|
||||of sales (%)||of sales (%)||
||Loading||||||
|Port operations|and|5,303,286,893.31|92.40%|4,298,197,269.65|91.25%|23.38%|
||unloading||||||
||services||||||
||Logistics||||||
|Bonded logistics service||214,495,776.55|3.74%|201,919,562.78|4.29%|6.23%|
||service||||||
|Other|Properties|221,458,726.01|3.86%|210,195,828.08|4.46%|5.36%|
|Total||5,739,241,395.87|100.00%|4,710,312,660.51|100.00%|21.84%|

 (6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period√ Yes□ No
China Merchants Port (Zhoushan) RoRo Logistics Co., Ltd. has been added to the consolidated financial statements of the Reporting Period due to an asset purchase via capital increase; China Merchants Port Holdings Company Limited (“CMPort Holdings”) has been added as a result of a business combination under common control involving the Company; TCP has been added due to a business combination not under common control involving CMPort Holdings, a subsidiary of the Company; and Shenzhen Haixing Onoda Logistics Development Co., Ltd. has been added due to an asset purchase of CMPort Holdings.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period□ Applicable√ Not applicable
(8) Major Customers and Suppliers
Major customers:
|||
|-|-|
||2,771,538,285.20|
|Total sales to top five customers (RMB)||
|Total sales to top five customers as % of total sales of the Reporting Period|28.56%|
|(%)||
||0%|
|Total sales to related parties among top five customers as % of total sales||

China Merchants Port Group Co., Ltd. Annual Report 2018
||
|-|
|of the Reporting Period (%)|

Top five customers:
|||||
|-|-|-|-|
|||Sales revenue contributed||
|No.|Customer|for the Reporting Period|As % of total sales revenue (%)|
|||(RMB)||
|1|Customer A|1,185,119,294.05|12.21%|
||Customer B|||
|2||468,009,461.45|4.82%|
||Customer C|||
|3||454,654,929.72|4.69%|
|4|Customer D|362,165,543.53|3.73%|
|5|Customer E|301,589,056.45|3.11%|
|Total|--|2,771,538,285.20|28.56%|

 Other information about major customers:
□ Applicable√ Not applicable
Major suppliers:
|||
|-|-|
|Total purchases from top five suppliers (RMB)|969,354,243.89|
|Total purchases from top five suppliers as % of total purchases of theReporting Period (%)||
||21.47%|
|Total purchases from related parties among top five suppliers as % of totalpurchases of the Reporting Period (%)||
||0%|

Top five suppliers:
|||||
|-|-|-|-|
|||Purchase in the Reporting||
|No.|Supplier||As % of total purchases (%)|
|||Period (RMB)||
|1|Supplier A|345,775,896.27|7.66%|
|2|Supplier B|338,102,927.61|7.49%|
|3|Supplier C|113,117,715.82|2.51%|
|4|Supplier D|88,859,558.97|1.97%|
|5|Supplier E|83,498,145.22|1.85%|
|Total|--|969,354,243.89|21.47%|

 Other information about major suppliers:
□ Applicable√ Not applicable
China Merchants Port Group Co., Ltd. Annual Report 2018 3. Expense
Unit: RMB
||||||
|-|-|-|-|-|
||2018|2017|Change (%)|Reason for any significant change|
||1,251,865,675.45|853,900,889.90||The restructuring costs and the|
|Administrati|||||
|||||adding of CMPort Holdings to the|
||||46.61%||
|ve expense||||consolidated financial statements for|
|||||the current year|
||1,643,418,102.95|955,406,648.46||A higher interest expense as a result|
|||||of more interest-bearing debt, as well|
|Finance costs|||72.01%||
|||||as a greater exchange loss, net caused|
|||||by exchange rate fluctuations|
|R&D|121,989,097.82|95,247,274.67||Higher expenses on various R&D|
||||28.08%||
|expense||||projects|

4.R&D Expense
In 2018, adhering to the strategic principle of “Have a Long-Term Vision and Grasp Current Opportunities”, the Company made great efforts to promote standardization, digitization and automation in port operations, which has produced certain results and laid a solid foundation for the building of intelligent ports with ChinaMerchants’ characteristics.
The progress of theCompany’s majorR&D projects in the Reporting Period is as follows: The E-Port system has started running upon the completion of construction and acceptance; the Shenzhen Western Ports Command and Control Center has been upgraded comprehensively; the Mawan Wharf has successfully completed the remote control modification of all the 36 RTG, with the handling volume exceeding 1 million TEU; and the global container AI project, the AI-based port decision-making system and the intra-port driverless vehicle project have been launched and on track.
Details aboutR&D expense:
|||||
|-|-|-|-|
||2018|2017|Change (%)|
|Number of R&D personnel|428|425|0.71%|
|R&D personnel as % of total employees|4.47%|5.29%|-0.82%|
|R&D expense (RMB)|121,989,097.82|95,247,274.67|28.08%|
|R&D expense as % of operating revenue|1.26%|1.26%|0.00%|
|Capitalized R&D expense (RMB)|-|-||
|Capitalized R&D expense as % of total||||
||0.00%|0.00%||
|R&D expense||||

China Merchants Port Group Co., Ltd. Annual Report 2018 Reasons for any significant YoY change in the percentage ofR&D expense in operating revenue:□ Applicable√ Not applicable
Reason for any sharp variation in the percentage of capitalizedR&D expense and rationale:
□ Applicable√ Not applicable
5. Cash Flows
Unit: RMB
|||||
|-|-|-|-|
|Item|2018|2017|Change (%)|
|Subtotal of cash generated from|10,551,620,379.77|8,121,339,982.14||
||||29.92%|
|operating activities||||
|Subtotal of cash used in operating|6,263,044,954.93|4,646,302,945.86||
||||34.80%|
|activities||||
|Net cash generated from/used in|4,288,575,424.84|3,475,037,036.28||
||||23.41%|
|operating activities||||
|Subtotal of cash generated from|1,989,829,350.62|9,831,224,130.57||
||||-79.76%|
|investing activities||||
|Subtotal of cash used in investing|17,138,391,838.98|7,747,352,982.62||
||||121.22%|
|activities||||
|Net cash generated from/used in|-15,148,562,488.36|2,083,871,147.95||
||||-826.94%|
|investing activities||||
|Subtotal of cash generated from|36,557,170,707.26|10,486,329,575.00||
||||248.62%|
|financing activities||||
|Subtotal of cash used in financing|27,681,971,449.91|11,274,819,013.90||
||||145.52%|
|activities||||
|Net cash generated from/used in|8,875,199,257.35|-788,489,438.90||
||||1225.60%|
|financing activities||||
|Effect of exchange rate fluctuations|-371,390,771.83|-294,425,747.23||
||||26.14%|
|on cash||||
|Net increase in cash and cash|-2,356,178,578.00|4,475,992,998.10||
||||-152.64%|
|equivalents||||

Explanation of why any of the data above varies significantly on a year-on-year basis:
Subtotal of cash generated from operating activities rose29.92% year-on-year, primarily driven by higher proceeds from sale of commodities and rendering of services.
Subtotal of cash used in operating activities rose34.80% year-on-year, primarily driven by more payments for commodities and services and more cash used in other operating activities.
Subtotal of cash generated from investing activities declined79.76% year-on-year, primarily driven by a smaller amount of net proceeds from disposal of subsidiaries or other business units.
Subtotal of cash used in investing activities rose121.22% year-on-year, primarily driven by a
higher amount of net payments for acquisition of subsidiaries and other business units.
Net cash generated from investing activities declined826.94% year-on-year, primarily driven by
China Merchants Port Group Co., Ltd. Annual Report 2018 less cash generated from and more cash used in investing activities.
Subtotal of cash generated from financing activities rose248.62% year-on-year, primarily driven by a higher amount of borrowings obtained.
Subtotal of cash used in financing activities rose145.52% year-on-year, primarily driven by a higher amount of repayments of borrowings.
Net cash generated from financing activities rose1225.60% year-on-year, primarily driven by a higher amount of net inflow calculated by borrowings obtained minus repayments of borrowings. Explanation of why net cash generated from/used in operating activities varies significantly from net profit of the Reporting Period:
√ Applicable□ Not applicable
For the Reporting Period, net cash generated from operating activities was RMB4,288,575,424.84, while net profit was RMB2,885,914,753.96. The gap was primarily caused by the changes in the fair value of financial assets as a result of the adoption of the new accounting standards governing financial instruments for the current year.
III Analysis of Non-Core Businesses
The non-core business operations with a significant impact on theCompany’s profit are as follows: Unit: RMB
||||||
|-|-|-|-|-|
|||||Exceptional or|
||Amount|As % of total profit|Main source/reason||
|||||recurrent|
||||Share of the profit of joint||
|Investment income|3,967,828,149.48|109.78%|ventures and associates,|Recurrent|
||||mainly Shanghai Port||
||||Loss on changes in the fair||
|Gain/loss on changes|||||
||-1,074,406,837.68|-29.73%|value of trading financial|Exceptional|
|in fair value|||||
||||assets||

IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||31 December 2018||1 January 2018||||
||||||Change in|Reason for any|
|||||As % of|||
||||||percentage|significant|
|||As % of|||||
||Amount||Amount|total|||
||||||(%)|change|
|||total assets|||||
|||||assets|||
|Monetary|7,070,308,704.75||7,729,460,082.75||||
|||5.52%||7.08%|-1.56%|-|
|capital|||||||
||1,109,230,503.08||892,415,771.49||||
|Accounts||0.87%||0.82%|0.05%|-|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|receivable|||||||
||108,567,270.02||82,789,282.22|||The adding of|
|||||||new subsidiaries|
|||||||to the|
|Inventory||0.08%||0.08%|0.00%||
|||||||consolidated|
|||||||financial|
|||||||statements|
|Investment|5,890,146,989.51||6,060,625,982.13||||
|||4.60%||5.55%|-0.95%|-|
|property|||||||
|Long-term|50,176,577,263.40||43,160,849,807.48||||
|equity||39.19%||39.55%|-0.36%|-|
|investments|||||||
||22,994,190,880.43||23,167,393,454.86||||
|Fixed assets||17.96%||21.23%|-3.27%|-|
||5,499,426,090.06||2,308,007,330.50|||The adding of|
|||||||new subsidiaries|
|||||||to the|
|||||||consolidated|
|Construction in|||||||
|||4.30%||2.11%|2.19%|financial|
|progress|||||||
|||||||statements and a|
|||||||higher wharf|
|||||||construction|
|||||||expense|
|Short-term|3,425,291,312.62||2,580,000,000.00||||
|||2.68%||2.36%|0.32%|-|
|borrowings|||||||
|Long-term|6,971,479,842.18||7,670,516,491.15||||
|||5.45%||7.03%|-1.58%|-|
|borrowings|||||||

2. Assets and Liabilities at Fair Value
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||Impairmen||||
|||Gain/loss on|Cumulative|t|Purchase|Sold in||
|||fair-value changes|fair-value|allowance|d in the|the||
|Item|Beginning amount||||||Ending amount|
|||in the Reporting|changes charged|for the|Reportin|Reportin||
|||Period|to equity|Reporting|g Period|g Period||
|||||Period||||
|Financial assets||||||||
|Financial assets at fair value||||||||
|through profit or loss||||||||
||2,982,466,950.23|-948,440,538.45|-|-|-|-|2,087,872,081.94|
|(exclusive of derivative||||||||
|financial assets) (note)||||||||
|Investments in other equity||||||||
||233,483,968.79|-|10,304,221.16|-|-|-|247,848,314.30|
|instruments (note)||||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||||
|-|-|-|-|-|-|-|-|
|Subtotal of financial assets|3,215,950,919.02|-948,440,538.45|10,304,221.16|-|-|-|2,335,720,396.24|
|Total of the above|3,215,950,919.02|-948,440,538.45|10,304,221.16|-|-|-|2,335,720,396.24|
|Financial liabilities|-|-|-|-|-|-|-|

 Note: The Company adopts the new accounting standards governing financial instruments starting from 1 January 2018, transferring certain equity instrument investments recorded in available-for-sale financial assets at the end of last year to financial assets at fair value through profit or loss.
Significant changes to the measurement attributes of the major assets in the Reporting Period:□ Yes√ No
3. Restricted Asset Rights as at the Period-End
There are structured deposits at the carrying amount of RMB1,697,027,200.00 that are kept overseas with restricted repatriation and are not withdrawable on demand; fixed assets in financial leases at the carrying amount of RMB5,516,393,451.13 and fixed assets as bank loan mortgages at the carrying amount of RMB308,813,888.44; construction in progress as bank loan mortgages at the carrying amount of RMB43,352,104.92; intangible assets as bank loan mortgages at the carrying amount of RMB161,408,030.71; and equities and interests as bank loan mortgages at the carrying amount of RMB2,293,573,691.13.
V Investments Made
1. Total Investment Amount
√ Applicable□ Not applicable
|||||
|-|-|-|-|
||Amount in 2018 (RMB)|Amount in 2017 (RMB)|Change (%)|
|Equity investments||||
||13,015,203,804.01|4,177,797,893.03|211.53%|
|Non-equity investments|2,437,080,643.74|2,511,160,012.03|-2.95%|

 2. Major Equity Investments Made in the Reporting Period
√ Applicable□ Not applicable
Unit:RMB’0,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Investm|||||
|||||||||||Return||||
||||||||||ent||Any|||
|||||The||||Type||on||||
|||Way of|||||Term of||progress||legal|Disclos||
||Principal||Investmen|Compa|Funding|Joint||of||investme|||Index to disclosed|
|Investee||investm|||||investm||as at the||matter|ure||
||activity||t amount|ny’s|source|investor||produ||nt in the|||information|
|||ent|||||ent||balance||involv|date||
|||||interest||||cts||Reportin||||
||||||||||sheet||ed|||
|||||||||||g Period||||
||||||||||date|||||
|CMPort|Operation||||Self-ow|Zhoushan|||Equity|||27|Refer to|
|||Capital|||||Perman|Equit||||||
|(Zhousha|of freight||14,970.98|51%|ned|Lanhai|||has|-212.42|Not|January|http://www.cninfo.|
|||increase|||||ent|y||||||
|n) RoRo|station||||funds|Investme|||been|||2018|com.cn for details|

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Logistics|(yard)|||||nt Co.,|||transferr||||of relevant|
|Co., Ltd.|(freight|||||Ltd.,|||ed||||announcement on|
||forwardin|||||CSC|||||||resolutions|
||g and|||||RoRo|||||||(announcement|
||storage|||||Logistics|||||||No. 2018-007)|
||and|||||Company||||||||
||tallying)|||||Limited,||||||||
|||||||Zhoushan||||||||
|||||||Archipela||||||||
|||||||go New||||||||
|||||||Area||||||||
|||||||SinoTran||||||||
|||||||s & CSC||||||||
|||||||RoRo||||||||
|||||||Logistics||||||||
|||||||Co., Ltd.||||||||
|||||||and||||||||
|||||||Zhoushan||||||||
|||||||Archipela||||||||
|||||||go New||||||||
|||||||Area||||||||
|||||||Xinghai||||||||
|||||||RoRo||||||||
|||||||Terminal||||||||
|||||||Co., Ltd.||||||||
|||||||China||||||||
||||||||||||||Refer to|
|||||||Merchant||||||||
|China|||||||||||||http://www.cninfo.|
|||||||s|||Equity|||||
|Merchant|||||||||||||com.cn for details|
||||||Additio|Investme|||has|||||
|s Port|Port|Acquisit|2,465,000.||||Perman|Equit||256,681||21 June|of relevant|
|||||39.45%|nal|nt|||been||Not|||
|Holdings|operations|i on|00||||ent|y||.31||2018|announcement on|
||||||shares|Develop|||transferr|||||
|Company|||||||||||||resolutions|
|||||||ment|||ed|||||
|Limited|||||||||||||(announcement|
|||||||Company||||||||
||||||||||||||No. 2018-062)|
|||||||Limited||||||||
||Land|||||China||||||||
|China||||||||||||||
||developm|||||Merchant|||||||Refer to|
|Merchant||||||||||||||
||ent,|||||s Group|||||||http://www.cninfo.|
|s Hainan||||||||||||||
||operation|||||(H.K.)||||||1|com.cn for details|
|Develop|||||Self-ow|||||||||
||of parks|New||||Limited,|Perman|Equit|Establis|||Decem|of relevant|
|ment &|||52,500.00|15%|ned|||||-|Not|||
||and|set up||||Jumbo|ent|y|hed|||ber|announcement on|
|Investme|||||funds|||||||||
||properties|||||Pacific||||||2018|resolutions|
|nt Co.,||||||||||||||
||,|||||Holdings|||||||(announcement|
|Ltd.||||||||||||||
||constructi|||||Limited,|||||||No. 2018-108)|
||on and|||||China||||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||investmen|||||Merchant||||||||
||t of|||||s||||||||
||municipal|||||Expressw||||||||
||infrastruct|||||ay||||||||
||ure, water|||||Network||||||||
||and|||||&||||||||
||power|||||Technolo||||||||
||supply for|||||gy||||||||
||parks,|||||Holdings||||||||
||urban|||||Co., Ltd.,||||||||
||renewal,|||||China||||||||
||investmen|||||Merchant||||||||
||t and|||||s||||||||
||managem|||||Industrial||||||||
||ent of|||||Investme||||||||
||projects,|||||nt Co.,||||||||
||etc.|||||Ltd. and||||||||
|||||||Sinotrans||||||||
|||||||(HK)||||||||
|||||||Logistics||||||||
|||||||Limited||||||||
||||2,532,470.|||||||233,071.||||
|Total|--|--||--|--|--|--|--|--||--|--|--|
||||98|||||||89||||

3. Major Non-Equity Investments Ongoing in the Reporting Period
Unit:RMB’0,000
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item||Wayofinvestment|Fixedassetsinvestment ornot|Industryinvolved||Inputamountin theReporting Period||Accumu|Capitalresources|Progress||Estimated returnoninvestment|Accumulative realizedrevenues asof theperiod-end|
|||||||||lative||||||
|||||||||actual||||||
|||||||||input||||||
|||||||||amount||||||
|||||||||as of the||||||
|||||||||period-e||||||
|||||||||nd||||||
|MachongIII silo||Self-build|Yes||Suppor|4,200|4,231||Self-owned fundsand loans|The civil work completed30%, the purchase andinstallment of equipmentcompleted the bid.||10.5%|Not carryover|
||||||t|||||||||
||||||activiti|||||||||
||||||es of|||||||||
||||||water|||||||||
||||||transpo|||||||||
||||||rtation|||||||||
||Building|Self-build|Yes||Suppor|5|5||Self-owned funds||Not yet start and is|10.0%|Not carryover|
||of||||t|||||||||
||||||||||||working out the|||
||Shantou||||activiti|||||||||
||Port’s||||es of||||||construction plan with|||
||headquart||||water|||||||||
||||||||||||China Merchants Shekou|||
||ers||||transpo|||||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||rtation|||||||Industrial Zone Holdings|||
||||||||||||Co., Ltd.|||
|Bulkgrainverticalsilo inMachongTerminal||Self-build|Yes||Suppor|3,163|24,096|Self-owned fundsand loans||Has been completed andput into operation in June2018||8.0%|Not carryover|
||||||t|||||||||
||||||activiti|||||||||
||||||es of|||||||||
||||||water|||||||||
||||||transpo|||||||||
||||||rtation|||||||||
|Project ofberth inXiamenPortHoushiPort||Self-build|Yes||Suppor|11,459|99,083|Self-owned fundsand loans||The physical constructionof the project has beenbasically completed||8.0%|Not carryover|
||||||t|||||||||
||||||activiti|||||||||
||||||es of|||||||||
||||||water|||||||||
||||||transpo|||||||||
||||||rtation|||||||||
|Buildingproject ofLegeshanterminalin shunde,Foshan||Self-build|Yes|Supportactivities ofwatertransportation||4,743|51,889|Self-owned fundsand loans|||The physical construction|8.1%|Not carryover|
||||||||||||of the project has been|||
||||||||||||basically completed and|||
||||||||||||currently in the settlement|||
||||||||||||process of each item of|||
||||||||||||the project|||
|Transformationproject ofMawanSmartPort ofHaixingHarbor||Self-build|Yes|Supportactivities ofwatertransportation||18,642|71,286|Self-owned fundsand loans|||Construction of the|8.4%|Not carryover|
||||||||||||hydraulic channel reactor|||
||||||||||||completed 41.1%. The|||
||||||||||||supporting equipment will|||
||||||||||||be landed in late 2019 and|||
||||||||||||early 2020. It is expected|||
||||||||||||to be completed by June|||
||||||||||||2020|||
|ShantouPortGuangaoPortPhase IIproject||Self-build|Yes||Suppor|71,904|150,228|Self-owned fundsand loans||Expected to be completedand put into operation on30 June 2019||8.8%|Not carryover|
||||||t|||||||||
||||||activiti|||||||||
||||||es of|||||||||
||||||water|||||||||
||||||transpo|||||||||
||||||rtation|||||||||
||Djibouti|Self-build|Yes|Supportactivities ofwatertransportation||33,714|34,514|Self-owned funds||Has been completed andcurrently in the process ofhandling the certificate ofland||14.2%|Not carryover|
||internatio|||||||||||||
||nal Free|||||||||||||
||Trade|||||||||||||
||Zone|||||||||||||
||Phase I|||||||||||||
||Warehous|||||||||||||
||e|||||||||||||
|MachongProject II||Self-build|Yes|Supportactivities ofwatertransportation||378|90,901|Self-owned funds|||At the present stage, the|22.8%|Not carryover|
||||||||||||main construction content|||
||||||||||||of the project is 50.86|||
||||||||||||meters of shoreline and|||
||||||||||||rear construction, and|||
||||||||||||85% of the wharf has been|||
||||||||||||backfilled.|||
|TCP||Self-b|Yes|Suppor||91,993|91,993||Self-owne||The overall project was|10.0%|Not carry|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|expansionproject||uild|||t|t|||d funds||completed 66% ahead ofschedule, with equipment36% completed|||over|
|||||||activiti|||||||||
|||||||es of|||||||||
|||||||water|||||||||
|||||||ranspo|||||||||
|||||||rtation|||||||||
||Total||--|--||--|240,201|618,226||--||--|--|--|

 4. Financial Investments
(1) Securities Investments
√ Applicable□ Not applicable
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Cumul|||||||
|||||||Gain/loss|ative|||||||
|||||||||Purcha||||||
|Variet|Code||Initial|Account||on fair|fair|sed in|Sold|Gain/loss||||
|||||ing|Beginning|value|value||in the||Ending|Accoun|Capital|
|y of|of|Name of|i nvestmen|measure|carrying|changes in|change|the|Repor|in the|carrying|ting|resourc|
|securi|securi|securities||||||Report||Reportin||||
|ties|ties||t cost|ment|value|the|s|ing|ting|g Period|value|item|es|
|||||model||Reporting|recorde||Period|||||
|||||||Period|d into|Period||||||
||||||||equity|||||||
|||||||||||||Trading||
|||||Fair||||||||||
||60101|Ningbo||||||||||financi||
|Stock|||592,183,0|value|2,164,404,44|-873,891,271||||32,107,779|1,361,414,47||Self-o|
||||||||0|0|0|||||
||8|Port|95.14||9.06|.63||||.07|4.58|al|wned|
|||||method||||||||||
|||||||||||||assets||
|||||||||||||Trading||
|||||Fair||||||||||
|||Qingdao||||||||||financi||
|Stock|06198||124,405,1|value|180,609,703.||||||190,401,046.||Self-o|
|||||||1,043,921.18|0|0|0|0||||
|||Port|38.80||14||||||01|al|wned|
|||||method||||||||||
|||||||||||||assets||
|||||||||||||Other||
|||||||||||||equity||
|||Jiangsu||Fair||||||||||
||60037||1,120,000|||||||||instrum|Self-o|
|Stock||Express||value|||-50,000.|||||||
||||||9,850,000.00|0||0|0|440,000.00|9,800,000.00|||
||7||.00||||00|||||ent|wned|
|||way||method||||||||||
|||||||||||||invest||
|||||||||||||ment||
|||||||||||||Other||
|||||||||||||equity||
|||||Fair||||||||||
||40003|Petroche|3,500,000|||||||||instrum|Self-o|
|Stock||||value||||||||||
||||||382,200.00|0|0|0|0|0|382,200.00|||
||2|mical A1|.00|||||||||ent|wned|
|||||method||||||||||
|||||||||||||invest||
|||||||||||||ment||
|||||||||||||Other||
|||||||||||||equity||
|||||Fair||||||||||
||40000|||||||||||instrum|Self-o|
|Stock||Guang|27,500.00|value||||||||||
||||||17,000.00|0|0|0|0|0|17,000.00|||
||9|Jian 1||||||||||ent|wned|
|||||method||||||||||
|||||||||||||invest||
|||||||||||||ment||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||721,235,7|||||||||||
|Total||--|2,355,263,35|-872,847,350|-50,000.|||32,547,779|1,562,014,72|--|--|
|||||||0|0|||||
||33.94||2.20|.45|00|||.07|0.59|||

(2) Investments in Derivative Financial Instruments
No such cases in the Reporting Period.
5. Use of Funds Raised
No such cases in the Reporting Period
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
On 5 February 2018, China Merchants Gangtong Development (Shenzhen) Co., Ltd., the subsidiary of China Merchants Group Co., Limited, and its persons acting in concert Broadford Global Limited, Shenzhen Malai Storage Co., Ltd. and Keen Field Enterprises Limited (all wholly-owned subsidiaries of China Merchants Port Holdings Company Limited) and China Nanshan Development (Group) Inc. signed the share transfer agreement. China Merchants Gangtong Development (Shenzhen) Co., Ltd. would receive 209,687,067 Chiwan Wharf A-shares held by China Nanshan Development (Group) Inc. by agreement at RMB25.47 per share and 161,190,933 Chiwan Wharf A-shares held by China Merchants Port Holdings Company Limited via Shenzhen Malai Storage Co., Ltd., for which all shares involved totaled 370,878,000, accounting for57.52% of the total outstanding shares of Shenzhen Chiwan Wharf Holdings Limited with total amount involved of RMB9,446,262,660. Broadford Global Limited would receive 55,314,208 Chiwan Wharf-B shares held by China Merchants Port Holdings Company Limited via Keen Field Enterprises Limited, accounting for a stake of8.58%, at HKD13.35 per share by agreement with total amount involved of HKD738,444,676.80. The transfer procedure for above-mentioned shares has been completed on 8 June 2018.
VII Major Subsidiaries
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over10%
effect on theCompany’s net profit
China Merchants Port Group Co., Ltd. Annual Report 2018 Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Relationship||Registeredcapital||||||
|||||||Operating|Operating||
|||Principal|||||||
|Name||||Total assets|Net assets|||Net profit|
||with the||||||||
|||activity|||||||
|||||||revenue|profit||
||Company||||||||
|China||Port|||||||
|Merchants||business,|||||||
|Port||bonded|HKD39,070,|122,364,211,|76,860,856,8|8,573,857,38|7,652,557,34|6,506,497,08|
||Subsidiary||||||||
|Holdings||logistics and|126,258.00|826.33|2 3 .5 9|4.94|8 .8 2|6 .1 5|
|Company||property|||||||
|Limited||investment|||||||
|||Business|||||||
|Shanghai|||||||||
|||related to|RMB23,173,||||||
|International|Joint stock|||144,367,034,|82,350,314,4|38,042,544,6|14,261,140,5|11,472,021,1|
|||port,|674,650.00||||||
|Port (Group)|company|||015.90|5 0 .2 5|2 1 .3 7|8 3 .9 3|0 3 .1 6|
|||container and|||||||
|Co., Ltd.|||||||||
|||terminal|||||||
|China|||||||||
|Nanshan|Joint stock|Holding via|RMB900,000|45,189,124,2|15,431,558,3|13,783,861,9|4,441,542,81|2,853,690,74|
|Development|company|investment|, 000.00|67.24|64.91|95.28|4.51|4.34|
|(Group) Inc.|||||||||
|Dalian Port|||||||||
|(PDA)|Joint stock|port and|RMB12,894,|35,315,583,1|20,860,237,2|6,754,444,90|859,395,678.|681,981,351.|
|Company|company|logistics|535,999.00|72.89|0 6 .4 5|2 .3 8|8 3|0 2|
|Limited|||||||||

Subsidiaries obtained or disposed in the Reporting Period
||||
|-|-|-|
|Subsidiary|How subsidiary was obtained or|Effects on overall operations and|
||disposed in the Reporting Period|operating performance|
|China Merchants Port Holdings|Business combination under the||
|||Business integration|
|Company Limited|same control||
|Shenzhen Haixing Onoda LogisticsDevelopment Co., Ltd.||Cooperate with berth transformation|
||Obtained by other method||
|||of the wharf|
|TCP Participações S.A.|Business combination not under the||
|||Container terminal newly added|
||same control||
|CMPort (Zhoushan) RoRo LogisticsCo., Ltd.||Newly added services of loading and|
||Obtained by other method|unloading at ro-ro terminal and|
|||warehousing|

There is no information on major holding companies and joint stock companies for the Company to disclose during the Reporting Period.
VIII Structured Bodies Controlled by the Company
□ Applicable√ Not applicable
China Merchants Port Group Co., Ltd. Annual Report 2018 IX. Outlook of the Companyblelled by the Compan
1. Outlook and trends of the industry
Looking forward to 2019, after the strong recovery in the last two years, the global economy will face the risk of slower growth. Trade protectionism will lead to more friction in the circulation of key elements and geopolitical issues will continue to dampen global recovery. With the weakening marginal utility of the stimulation policies, coupled with the effect of continuous interest rate hike, the United States will be facing increased debt and financial pressure; while the European economies will continue to recover at a slow pace with the prevailing uncertainties associated with political risks. Meanwhile, as affected by capital outflow, currency depreciation and geopolitical issues, the emerging and developing economies demonstrated diverging growth trends. According to IMF, it is expected that the global economy will grow at a lower rate of3.5% in 2019, down 0.2 percentage point as compared to that of 2018, among which, developed economies are expected to grow by2.0%, down 0.3 percentage point as compared to that of 2018; emerging and developing economies will grow by4.5%, down 0.1 percentage point as compared to that of 2018, and the total global trade volume (including goods and services) will grow by4.0%, flat with 2018.
Chinang forward to 2019, after the strong recovery in the last two years, the global economy will face the risk of slower growth. Trade protectionism will lead to gradually stabilise under more vigorous fiscal expansion whilst income tax reform will help to stabilise consumption. The constant promulgation of supportive policies for private enterprises will restore the confidence of the enterprises. Fiscal and monetary policies aiming to stabilise overall demand will be more relaxed, and a more moderate and flexible approach will be adopted in addressing complicated international issues such as Sino-US trade friction. All of the above will be conducive to economic and trade growth. According to the IMF,China’s economy is projected to grow by6.2% in 2019, down 0.4 percentage point over 2018.
Affected by the trade investment policy of 019, down 0.4 percentage point over 2018. economy will face the risk of slower growtt rate hike and tax reduction of developed countries, the risk of declining cyclical recovery momentum of the global economy will increase. In 2019, the global container transportation market will be under recovery and adjustment with the pressure of overcapacity. Under the influence of the Sino-US trade friction, the centralized export in 2018 by certain cargo owners of Trans-Pacific shipping routes will have a certain impact on their seaborne volume in 2019; while the shipping price of Asia-Europe shipping routes is under pressure as affected by the economic slowdown in Europe. However, the industrial transfer will bring more
China Merchants Port Group Co., Ltd. Annual Report 2018 rooms for the development of shipping routes in Southeast Asia. Meanwhile, under the influence of trade friction and industrial transfer, the port investment of emerging economies will be facing intensified competition. The port price of developed countries continued to rise, creating great pressure for the acquisition and expansion strategy of port operators.
The current policies in China encouraging imports and acceleration of consumption upgrade will drive the growth of domestic import. Through measures such as organizing Import Expo, the Chinese government has been vigorously driving consumption. In the future, the government will focus on both export and import in China and the consumption import market will certainly provide great support for the port operation in China. The continued implementation of Guangdong-Hong Kong-Macao Greater Bay Area and free-trade port policy is expected to promote port development. With enhancing trading activities in the region, there will be opportunities for the development of regional shipping hubs. The integration of domestic regional ports has also brought opportunities to tap into major coastal cities and realise comprehensive development. Under the new development trend of domestic and overseas economy and trade as well as ports and the shipping industry, the Company will be playing an increasingly important role as a major player among global comprehensive port service providers.
2. Development strategy of the Company
The Company is striving to become a world imports and acceleration of consumption upgrade will drive the growth of domestic import. Through measures such as organizing Import Expo,ology-driven and flexible” and the goal of quality development to accelerate the technology-powered innovation, thereby realizing a scientific global layout with balanced development, providing first-class professional solutions and seeking more returns for shareholders, which will in turn support the development of local economy and industries and promote positive development of the port industry.
Firstly, in respect of domestic strategies, the Company will, by seizing the opportunity arising from the supply-side reform and based on “regional consolidation and enhancement of synergy”, seek for opportunities for consolidation and cooperation on an ongoing basis across the five main coastal regions with a view to further expanding and improving the ports network layout within China. The Group will lead a new direction for the consolidation of regional ports with a key focus on constantly improving the quality of port development with its best efforts. Secondly, in respect of overseas strategies, the Company will continue to capitalize on the opportunities arising from the “Belt and Road” initiative promoted by China and the international industrial transfers, at the same time adapting to the trend of deploying mega-vessels and forming shipping alliances. Emphasis will be placed on the development of global major hub ports and gateway ports as well as areas with
China Merchants Port Group Co., Ltd. Annual Report 2018 high market potential, fast-growing economy and promising development prospect. The Company will grasp opportunities in port, logistics and related infrastructures investment for the on-going enhancement of its global port network.
Thirdly, in respect of innovation strategies, the Company will adhere to dhere tony will ct of innovation strategies, ogistics and related infrastructuresze on the opportunitiesnnovation and holding the technology high ground. By means of technological innovation and innovative management, it will significantly enhance the efficiency and effectiveness of port operation and become a leading enterprise in the automation transformation of traditional ports. It will also enrich the comprehensive port services through business model innovation.
3. Business plans for 2019
In 2019, under the strategic principle of being del innovation.ted infrastructuresze on the opportunitiesnnovatioCompany will strengthen synergic cooperation externally and accelerate integrated development internally, make efforts to enhance various capabilities, improve risk prevention and control, establish quality development models and be committed to the vision of being a “will strengthen synergic cooperation externally and.
Regarding the development of homebase port, the Company will promote the West Shenzhen Port Zone as a world-class leading port by pushing forward the dredging project of West Shenzhen Port Zone and the completion and acceptance of the Tonggu Channel project as soon as possible and thus offering protection to the mega vessels to call at West Shenzhen Port Zone. Meanwhile, the Company will strengthen the construction of smart ports, facilitate the construction of “PRD NETWORK” platform, expand the network scope and resource docking depth of the Pearl River Delta, enhance the transformation of the smart safety monitoring and on-shore smart container identification system of CCT Port Zone by the use of various technologies such as LBS system, Internet of Things, big data, etc. and therefore contributing to the construction of smart ports. In addition, accelerating the promotion of innovative applications, implementation of innovative projects including ngystem for safety protection and operation support in RTGs” and “RTG Remote Control” will improve operational efficiency, reduce operating costs, strengthen trade facilitation and improve the overall competitiveness of the homebase port. In terms of overseas homebase port, the Company will leverage the synergic advantages of CICT and Hambantota port to create a leading regional port and international shipping centre in South Asia.
Regarding overseas expansion, the Company will further improve its global ports network, focus on gateway ports and conduct in-depth research regarding its overseas layout. Also, the Company will identify priorities in strict compliance with assessment dimensions and principles for overseas ports projects. The Group will conduct studies on its overseas network along the “East-West route,
China Merchants Port Group Co., Ltd. Annual Report 2018 South-North route, regions along the Belt and Road Initiatives”. Furthermore, the Company will continue to put more efforts in the study of global regional market to establish and improve the regional market development and research database for the East Africa, West Africa, South Asia, Europe, Latin America and Southeast Asia.
In terms of comprehensive development, leveraging the opportunities brought by the shift towards ve the regional market devel will step up its efforts in promoting the “Port-Park-City” business model, and actively push forward the construction and development of the Djibouti Free Trade Zone for the comprehensive development project in Djibouti. For the comprehensive development project in Togo, the Group will continue to proactively promote the relevant comprehensive development cooperation projects; while for the Hambantota Port project, the Group will facilitate the preliminary work in relation to introduction of investment and capital based on the improvement of the park development plan. Capitalizing development opportunities arising from of the Guangdong-Hong Kong-Macao Greater Bay Area, the Company will actively make progress on its land preparatory works in the Qianhai-Shekou Free Trade Zone by participating in the overall development thereof.
Regarding operation management, the Company will continuously optimise internal procedures and mechanisms to promote management reform and process reengineering. The Company will focus its efforts on enhancing the level of refined operation and management of terminals for which it is a controlling shareholder, benchmarking its terminal management, reducing cost and improving efficiency, and generating income by saving costs so as to establish a governance structure of globalised operation and management headquarter, optimise overall management system and enable operating mechanism to be in line with project operation. The Company will also enhance its investment management and amend and improve relevant systems and procedures.
In terms ofM&A integration, the Company will actively incorporate national strategies in its operation, with a focus on the policy opportunities arising from the Belt and Road Initiativei, coordinated development of Beijing, Tianjin and Hebei Province, the Yangtze River Economic Belt, the Guangdong-Hong Kong-Macao Greater Bay Area, the opening-up of Hainan trade zone, the revitalisation of Northeast China and the integrated development of the Yangtze River Delta Zone. The Company will also form a set of effective operational procedures to develop world-classM&A integration capability. Moreover, when the Company manages the assets of Liaoning Port, it will explore the potential for integration, focus on its core business and implement the integration of operational models through optimising the port zone layout, thereby creating business synergies. Regarding innovative development, the Company will continue to enhance informatisation, upgrade and promote its core IT products, i.e. “TOS” series. Taking “E-Port” as a pivot, the Company will
China Merchants Port Group Co., Ltd. Annual Report 2018 set up the establishment of top-tier port platform for providing excellent customer services. On the one hand, the Company will attach further importance to the unique role and fundamental position of technology-driven and innovation-oriented development. Also, the Company will create a top-tier port innovation ecosystem. Smart upgrade of controlling terminals of the Company will be gradually achieved through technological innovation. The Company will learn from the experience of implementing to enhance informatisation, upgrade and promote its core IT products, i.e. “TOS” series. Taking “E-Port” as a pivot, the Company will set up the establishment of top-tier port platform for providif various terminals in the future.
Capital needs and use plan
In 2019, the Company will formulate capital expenditure plans according to business development needs. Key investment projects include Haixing Harbor upgrading and reconstruction project, Machong Port bulk grain project, Zhanjiang Port Xiashan Port General Terminal Project, Shantou Port Guangao Port Phase II project and TCP terminal expansion project, etc.
4. Possible risks and counter measures
(1)External risks
The external risks mainly come from the combined impact of international political environment and consolidation of domestic port groups. As for international political risks, the rise of populism around the globe has led to challenges in the globalization trend. The change in geopolitical and economy trade landscape, as highlighted by Sino-US trade friction, has caused changes in global trade structure and resulted in certain impacts on global economy trade and port shipping sector. Shipping routes in various regions across the globe may be affected and changed accordingly, causing adverse impacts on containers and bulk cargo businesses of the Company. As for consolidation of domestic port groups, with an ever-deepening consolidation of various regions in China, the port competition landscape will change correspondingly, causing uncertainty to the business and operation earnings of the Company.
By enhancing the build-up of risk identification, warning and mitigation ability, the Company has prevented, controlled and reduced external risks. The Company has continued to pay attention to changes in external policies and market environment specific to international political environment risk, especially Sino-US trade friction. On one hand, the Company can improve risk warning and monitoring measures and ensure proper work on customer credit status so as to reduce the risk of accounts receivable. On the other hand, the Company can notice the changes in the trade market structure and flow of resources, formulate and adjust strategies for business development in time so as to enhance collaboration and close connection between ports at home and abroad, improve service quality and related services, and stabilize import and export business and customer base.
China Merchants Port Group Co., Ltd. Annual Report 2018 (2) Internal risks
The internal risks mainly come from the risks of shortage of outsourced labour, increased cost and legal compliance of overseas investment projects. In the context of economic transformation and upgrade in Shenzhen, wharf operation as a traditional industry faced significant labour shortage for the outsourced business due to the current working conditions and remuneration packages. Remarkable trends such as staff turnover and aging staff will affect production efficiency and posed safety risks. When the Company expands its overseas business, the requirement on compliance with legal policies in invested countries will pose the risk of uncertainty on the investment and operation of the Company.
The Company has proactively studied the outsourced staffing policy and formulated corresponding responsive strategies to diminish the impacts of outsourced staffing risk on the business of the Company, including enhancing the working environment of outsourced staff and improving their remuneration packages by increasing labor productivity, accelerating technological upgrade and innovation of techniques to raise the level of mechanization, reduce manual labor input and lower the use of manpower. Regarding the legal compliance risk of overseas investment projects, the Company will step up its efforts in establishing and enforcing compliance management system and ensure proper work on management and control throughout the process, i.e. before, during, and after overseas investment project investment and operation, so as to strictly prevent legal compliance risks.
X Communications with the Investment Community such as Researches, Inquiries and Interviews
1. During the Reporting Period
|||||
|-|-|-|-|
||Way of|Type of||
|Date|||Index to main information communicated|
||communication|communication party||
|4 January 2018|One-on-one meeting|Institution||
|6 February 2018|One-on-one meeting|Institution||
||||Main discussion: basic business condition,|
|12 March 2018|One-on-one meeting|Institution|investments and financial condition of the|
|10 May 2018|One-on-one meeting|Institution|Company; Materials provided: brochure of|
|25 May 2018|One-on-one meeting|Institution|the Company;|
|13 November 2018|One-on-one meeting|Institution|Index: SZSE EasyIR|
||||(http://irm.cninfo.com.cn/ssessgs/S001872|
||By phone or written|||
||||/index.html)|
|1 January 2018-31||||
||inquiry (EasyIR|Individual||
|December 2018||||
||platform of SZSE)|||
|Times of communications|||195|
|Number of institutions communicated with|||7|

China Merchants Port Group Co., Ltd. Annual Report 2018
|||
|-|-|
|Number of individuals communicated with|188|
|Number of other communication parties|0|
|Tip-offs or leakages of substantial supposedly-confidential information||
||No|
|during communications||

2. Period-end to Disclosure Date
|||||
|-|-|-|-|
|||Type of||
||Way of|||
|Date||communication|Index to main information communicated|
||communication|||
|||party||
||By phone or||Main discussion: basic business condition,|
||written inquiry||investments and financial condition of the Company;|
|1 January 2019-30||||
||(EasyIR|Individual|Materials provided: brochure of the Company;|
|March 2019||||
||platform of||Index: SZSE EasyIR|
||SZSE)||(http://irm.cninfo.com.cn/ssessgs/S001872/index.html)|
|Times of communications|||55|
|Number of institutions communicated with|||0|
|Number of individuals communicated with|||55|
|Number of other communication parties|||0|
|Tip-offs or leakages of substantial supposedly-confidential||||
||||No|
|information during communications||||

China Merchants Port Group Co., Ltd. Annual Report 2018 Part V Significant Events
I Profit Distributions to Ordinary Shareholders (in the Form of Cash and/or Stock)
Formulation, execution or adjustments of profit distribution policy for ordinary shareholders, especially cash dividend policy, in Reporting Period
Pursuant to the CSRC Guideline for Listed Companies No.3-Cash Dividends of Listed Companies and the Notice of CSRC on Further Implement ting Matters Related to Cash Dividends of Listed Companies, the Articles of Association clarifies the specific profit distribution policy, decision-making procedures and mechanism, adjustment of profit distribution policy, implementation of profit distribution plan and profit distribution for foreign shares. During the Reporting Period, the Company executed the profit distribution policy in strict compliance with the Articles of Association.
|||
|-|-|
|Special statement about the cash dividend policy||
|In compliance with the Company’s Articles of Association and resolution of general meeting|Yes|
|Specific and clear dividend standard and ratio|Yes|
|Complete decision-making procedure and mechanism|Yes|
|Independent directors faithfully performed their duties and played their due role|Yes|
|Non-controlling interests are able to fully express their opinion and desire and their legal rights||
||Yes|
|and interests are fully protected||
|In case of adjusting or changing the cash dividend policy, the conditions and procedures involved||
||Yes|
|are in compliance with applicable regulations and transparent||

The profit distributions to ordinary shareholders, either in the form of cash or stock, in the past three years (including the Reporting Period) are summarized as follows:
1. Dividend Payout Plan for 2016
As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the Company as the parent for 2016 stood at RMB195,474,231.11, and the cumulative distributable profit at RMB634,765,399.86.
(1) According to the Company Law and the Articles of Association of the Company, the Company may stop making statutory surplus reserve when its accumulative amount reaches50% of the registered capital. The accumulative statutory surplus reserve of the Company as the parent stood at RMB520,074,434.56 for 2016, equal to80.66% of the registered capital. Therefore, the Company
did not plan to draw surplus reserve from retained earnings for 2016;
China Merchants Port Group Co., Ltd. Annual Report 2018 (2) Based on the total 644,763,730 shares as at the end of 2016, a cash dividend of RMB4.96 (tax included) was to be distributed for every 10 shares, with a total of RMB319,802,810.08 being distributed.
The Board of Directors of the Company published the implementation announcement on dividend payout for 2016 on Securities Times and Ta Kung Pao (HK) dated 25 July 2017, and completed the dividend payout for the A-share and B-share holders on 1 August 2017 and 3 August 2017 respectively.
2. Dividend Payout Plan for 2017
As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the Company as the parent for 2017 stood at RMB731,510,588.25 and the cumulative distributable profit at RMB1,046,473,178.03.
(1) According to the Company Law and the Articles of Association of the Company, the Company may stop making statutory surplus reserve when its accumulative amount reaches50% of the registered capital. The accumulative statutory surplus reserve of the Company as the parent stood at RMB520,074,434.56 for 2017, equal to80.66% of the registered capital. Therefore, the Company intends not to draw surplus reserve from retained earnings for 2017.
(2) Based on the total 644,763,730 shares as at the end of 2017, a cash dividend of RMB13.19 (tax included) was to be distributed for every 10 shares, with a total of RMB850,443,359.87 being distributed.
The Board of Directors of the Company published the implementation announcement on dividend payout for 2017 on Securities Times and Ta Kung Pao (HK) dated 16 May 2018, and completed the dividend payout for the A-share and B-share holders on 23 May 2018 and 25 May 2018 respectively.
3. Dividend Payout Plan for 2018
As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the consolidated net profit attributable to the Company as the parent for 2018 stood at RMB1,090,418,910.77 and the net profit of the Company as the parent at RMB71,014,741.10.
(1) According to the Company Law and the Articles of Association of the Company, the Company withdrew RMB7,101,474.11 of profit as statutory reserve. The accumulative distributable profit of
China Merchants Port Group Co., Ltd. Annual Report 2018 the Company as the parent at the end of 2018 was RMB259,943,085.16.
(2) Base on the total 1,793,412,378 shares as at the end of 2018, a cash dividend of RMB1.14 (tax included) is to be distributed for every 10 shares, totaling RMB204,449,011.09.
After the above-mentioned distribution, the retained earnings of the Company as the parent will be RMB55,494,074.07.
The above profit distribution plan still needs to be submitted to the 2018 Annual General Meeting for approval.
Cash dividend for ordinary shareholders in the past three years (including the Reporting Period)
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Cash||
|||Net profit attributable to||||
|||||dividends in||
|||ordinary shareholders of||||
||Cash dividends|||other forms|C as % of|
|Year||the listed company in|A as % of B (%)|(such as||
||(tax inclusive) (A)||||B (%)|
|||consolidated statements||share||
|||||repurchase)||
|||for the year (B)||||
|||||(C)||
||204,449,011.09|1,090,418,910.77|18.75%|0|0%|
|2018||||||
|2017|850,443,359.87|504,495,064.39|168.57%|0|0%|
|||532,376,492.97||||
|2016|319,802,810.08||60.07%|0|0%|

 The net profit attributable to the ordinary shareholders of the listed company in the 2018 consolidated statement is the data of the Company after the retrospective adjustment for business combination under the same control. The net profit attributable to the ordinary shareholders of the listed company in the 2016 and 2017 consolidated statements is the data of the Company before the retrospective adjustment for business combination under the same control.
II Final Dividend Plan for the Reporting Period
|||
|-|-|
|Cash dividend/10 shares (RMB) (tax inclusive)|1.14|
|Bonus issue from capital reserves (share/10 shares)|0|
|Share base (share)||
||1,793,412,378|
|Total cash dividends (RMB) (tax inclusive)|204,449,011.09|
|Distributable profits (RMB)|259,943,085.16|
|Cash dividends as % of total profits to be distributed (%)||
||100%|
|Details about the final dividend plan||

China Merchants Port Group Co., Ltd. Annual Report 2018
||
|-|
|As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the consolidated net profit attributable|
|to the Company as the parent for 2018 stood at RMB1,090,418,910.77 and the net profit of the Company as the|
|parent at RMB71,014,741.10.|
|1. According to the Company Law and the Articles of Association of the Company, the Company withdrew|
|RMB7,101,474.11 of profit as statutory reserve. The accumulative distributable profit at the end of 2018 was|
|RMB259,943,085.16.|
|2. Base on the total 1,793,412,378 shares as at the end of 2018, a cash dividend of RMB1.14 (tax included) is to be|
|distributed for every 10 shares, totaling RMB204,449,011.09.|
|After the above-mentioned distribution, the retained earnings of the Company as the parent will be|
|RMB55,494,074.07.|
|The above profit distribution plan still needs to be submitted to the 2018 Annual General Meeting for approval.|

China Merchants Port Group Co., Ltd. Annual Report 2018 III Fulfillment of Commitments
1. Commitments of theCompany’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
||||||||
|-|-|-|-|-|-|-|
|||Type of||Date of|||
||Promiso||||Term of||
|Commitment||commitme|Details of commitment|commitment||Fulfillment|
||r||||commitment||
|||nt||making|||
|||||||Fulfilled|
|||||||On 8 June 2018, China Nanshan|
|||||||Development (Group) Inc.|
|||||||transferred 209,687,067 shares|
|||||||of Chiwan Wharf held by it to|
||||||Effective until||
||||In order to enhance the shareholding confidence of tradable|||CMGD. For relevant details,|
||||||no-longer to||
||China||shareholders, and encourage the core management and key personnel|||please refer to the|
||||||be the||
||Nanshan||so that the interests of the management and all the shareholders can|||Announcement on Completion of|
|Commitment||Other|||||
||||||shareholder of||
||Develop||coincide, CND Group made a commitment to entrust, through the|||Share Transfer of Shareholders|
|s made in||commitme||5 April 2006|||
||||||the Company||
||ment||general meeting of the Company, the Board of Directors of the|||and Changes in Controlling|
|share reform||nt|||||
||(Group)||Company to formulate and carry out an equity incentive plan at a|||Shareholders (announcement|
||Inc.||proper timing after the completion of the share division reform|||No.: 2018-060) disclosed on|
||||according to applicable laws and regulations.|||cninfo.com.cn on 12 June 2018.|
|||||||The above commitment is|
|||||||effective until China Nanshan|
|||||||Development (Group) Inc. no|
|||||||longer holds shares of the|
|||||||Company.|
|Commitment|CMPort|Commitme|1. Commitment on share custody|17|Effective until|Fulfilled|
|s made in|Holding|nts on|2. Commitment on safeguarding independence of CMPort|September|16 September|On 5 February 2018, China|
|acquisition|s|horizontal|3. Commitment on horizontal competition|2012|2020 for|Nanshan Development (Group)|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||
|-|-|-|-|-|
|documents|competitio|4. Commitment on regulating related-party transactions|commitment|Inc. signed the Termination|
|or|n,||on horizontal|Agreement on the Share Custody|
|shareholding|related-part||competition|Agreement of Shenzhen Chiwan|
|alteration|y||and CMPort|Wharf Holdings Limited with|
|documents|transaction||is the|CMPort Holdings; the aforesaid|
||and capital||controlling|termination agreement of share|
||occupation||shareholder of|custody agreement was|
||||the Company;|approved on the general meeting|
||||effective in|of CMPort Holdings on 19|
||||the share|March 2018. So far, CMPort|
||||custody term|Holdings would no longer be|
||||for other three|entrusted to manage shares of|
||||commitments|Chiwan Wharf held by China|
|||||Nanshan Development (Group)|
|||||Inc. For more details, please|
|||||refer to the relevant|
|||||announcement disclosed by the|
|||||Company on 3 May 2018. On 8|
|||||June 2018, Malai Storage and|
|||||KFEL transferred their shares of|
|||||Chiwan Wharf respectively to|
|||||CMGD and Broadford Global.|
|||||For more details, please refer to|
|||||the Announcement on|
|||||Completion of Share Transfer of|
|||||Shareholders and Changes in|
|||||Controlling Shareholders|
|||||(announcement No.:2018-060)|
|||||disclosed on cninfo.com.cn by|
|||||the Company on 12 June 2018.|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|||||||So far, CMPort Holdings was no|
|||||||longer the controlling|
|||||||shareholder of the Company and|
|||||||the terms of above commitments|
|||||||were ended.|
|||||||Fulfilled|
|||||||On 8 June 2018, Malai Storage|
|||||||transferred 161,190,933 shares|
|||Commitme||||of Chiwan Wharf held by it to|
|Commitment||nts on||||CMGD. For relevant details,|
|s made in||horizontal||||please refer to the|
||||||Effective until||
|acquisition||competitio||||Announcement on Completion of|
||||1. Commitment on safeguarding independence of CMPort|27|no-longer to||
|documents|Malai|n,||||Share Transfer of Shareholders|
||||2. Commitment on horizontal competition|December|be the||
|or|Storage|related-part||||and Changes in Controlling|
||||3. Commitment on regulating related-party transactions|2012|shareholder of||
|shareholding||y||||Shareholders (announcement|
||||||the Company||
|alteration||transaction||||No.: 2018-060) disclosed on|
|documents||and capital||||cninfo.com.cn on 12 June 2018.|
|||occupation||||The above commitment is|
|||||||effective until Malai Storage no|
|||||||longer holds shares of the|
|||||||Company.|
|||Commitme|||The||
||||Commitment on safeguarding independence of CMPort made by||||
|Commitment|||||||
|||nts on|||commitment||
||||CMGD and its person acting in concert Broadford Global: to||||
|s made in|||||||
||CMGD|horizontal|||on||
||||safeguard the independence of finance, institutions, business and||||
|acquisition|||||||
||and|competitio|||safeguarding||
||||personnel of CMPort as well as independence and integrity of assets||||
|documents||||15 March|||
||Broadfo|n,|||independence|Ongoing|
||||of CMPort||||
|or||||2018|||
||rd|related-part|||of CMPort is||
|shareholding|||||||
||Global|y|||effective for a||
|alteration|||||||
|||transaction|||long time; the||
|documents|||||||
|||and capital|||commitment||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|||occupation|||on regulating||
||||||related-party||
||||||transactions is||
||||||effective||
||||||during the||
||||||period when||
||||||CMGD and||
||||||its persons||
||||||acting in||
||||||concert||
||||||possess||
||||||control power||
||||||over the||
||||||Company||
||||Commitment on regulating related-party transaction made by CMGD||The||
||||and corresponding persons acting in concert- Broadford Global:||commitment||
||||1. CMGD/Broadford Global will make a great effort to reduce||on||
|||Commitme|related-party transaction between CMGD/Broadford Global and its||safeguarding||
|Commitment||nts on|related parties as well as CMPort. Inevitable business dealings or||independence||
|s made in||horizontal|transactions shall be conducted as per marketization principle and fair||of CMPort is||
||CMGD||||||
|acquisition||competitio|price and the obligation of information disclosure shall be fulfilled||effective for a||
||and||||||
|documents||n,|pursuant to provisions;|15 March|long time; the||
||Broadfo|||||Ongoing|
|or||related-part|2. CMGD/Broadford Global and its related parties ensure they will|2018|commitment||
||rd||||||
|shareholding||y|strictly observe related stipulations of laws, regulations, normative||on regulating||
||Global||||||
|alteration||transaction|documents and Articles of Association of CMPort and equally||related-party||
|documents||and capital|execute shareholders' rights and fulfill shareholders' obligations||transactions is||
|||occupation|together with other shareholders in line with legal program as well as||effective||
||||won't seek improper interest with actual controller's status or damage||during the||
||||legitimate interest of CMPort and other shareholders;||period when||
||||3. The above commitment is continuously effective during the period||CMGD and||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||when CMGD/Broadford Global has the right to control CMPort. In||its persons||
||||case of losses incurred by CMGD/Broadford Global failing to fulfill||acting in||
||||the above commitment to CMPort, CMGD will bear corresponding||concert||
||||compensation responsibility.||possess||
||||||control power||
||||||over the||
||||||Company||
||||Commitment on regulating related-party transaction:||||
||||1. China Merchants Group will try its best to reduce related-party||||
||||transaction between it and its related parties and CMPort. Inevitable||||
||||business dealings or transactions shall be conducted as per||||
|||Commitme|marketization principle and fair price and the obligation of||||
|Commitment||nts on|information disclosure shall be fulfilled pursuant to provisions;||||
|s made in||horizontal|2. China Merchants Group ensure they will strictly observe related||||
||||||Effective until||
|acquisition||competitio|stipulations of laws, regulations, normative documents and Articles of||||
||||||no-longer to||
|documents||n,|Association of CMPort and equally execute shareholders' rights and|15 March|||
||CMG||||be the actual|Ongoing|
|or||related-part|fulfill shareholders' obligations together with other shareholders in|2018|||
||||||controller of||
|shareholding||y|line with legal program as well as won't seek improper interest with||||
||||||the Company||
|alteration||transaction|actual controller's status or damage legitimate interest of CMPort and||||
|documents||and capital|other shareholders;||||
|||occupation|3. The above commitment is continuously effective during the period||||
||||when China Merchants Group has the right to control CMPort. In||||
||||case of losses incurred by China Merchants Group failing to fulfill||||
||||the above commitment to CMPort, China Merchants Group will bear||||
||||corresponding compensation responsibility.||||
|Commitment||Commitme|Commitment on horizontal competition:|||Fulfilled|
|s made in||nts on|1. On account of horizontal competition in the aspect of port business|||On 26 December 2018, the|
|||||15 March|16 September||
|acquisition|CMG|horizontal|between China Merchants Group and CMPort, China Merchants|||Company purchased|
|||||2018|2020||
|documents||competitio|Group promises to completely solve horizontal competition problem|||1,313,541,560 ordinary shares of|
|or||n,|by asset restructuring before 16 September 2020;|||CMPort Holdings held by CMID|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|shareholding||related-part|2. China Merchants Group confirms the commitment letter is aimed|||and CMPort Holdings starts to|
|alteration||y|at guaranteeing rights and interests of all the shareholders of CMPort|||be involved into the combination|
|documents||transaction|as well as such clauses and commitments are reasonable. China|||financial statements of the|
|||and capital|Merchants Group won't carry out operation activities damaging|||Company. The commitment was|
|||occupation|benefits of CMPort and all the shareholders from China Merchants|||fulfilled.|
||||Group based on its control against CMPort.||||
||||3. Each commitment carried in his commitment letter shall be||||
||||independently executed by China Merchants Group confirmed. It||||
||||shall not influence the effectiveness of the other commitments in case||||
||||any commitment is deemed invalid or terminated;||||
||||4. Provision, explanation, fulfillment and execution of the||||
||||commitment letter apply to provisions of related laws and regulations||||
||||of the People's Republic of China (excluding Hong Kong Special||||
||||Administrative Region, Macao Special Administrative Region and||||
||||Taiwan for the purpose of the commitment letter);||||
||||5. The commitment letter takes effect as of the date of official||||
||||signature by China Merchants Group;||||
||||6. Above-mentioned various promises are continuously effective||||
||||during the period when China Merchants Group controls CMPort.||||
||||1. CMPort shares obtained by purchasing assets with shares issued||||
||||this time are forbidden to be transferred or transacted in the market||||
||||before the latter one between the date arising 36 months after the date||||
|||Commitme|when CMPort shares gained by CMID based on this transaction are||||
|Commitment|||||||
|||nt on|registered under the name of CMID and the date when fulfillment of|26|||
|s made in|||||||
||CMID|restriction|compensation obligations set forth in the Impairment Compensation|December|25 June 2022|Ongoing|
|time of asset|||||||
|||on share|Agreement for Issuing Shares To Purchase Assets signed by and|2018|||
|restructuring|||||||
|||trading|between CMID and CMPort, separately and its supplementary||||
||||agreement (if any) is over (except for repurchasing or presenting||||
||||shares pursuant to Impairment Compensation Agreement for Issuing||||
||||Shares To Purchase Assets and its supplementary agreement (if any));||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||2. In case of closing price of CMPort stocks being lower than issue||||
||||price for consecutive 20 transaction days within 6 months after||||
||||completion of the transaction or such closing price being lower than||||
||||issue price at the end of the 6th month after completion of the||||
||||transaction, the lockup period of CMPort stocks held by CMID will||||
||||be automatically lengthened for at least 6 months;||||
||||3. CMPort shares which derive from consideration shares obtained by||||
||||CMID based on the transaction during the lockup period due to||||
||||CMPort distributing stock dividend and capital reserve converted into||||
||||increased capital shall be subject to the commitment regarding the||||
||||above restricted stock trade period;||||
||||4. In case that the transaction is placed on file for investigation and||||
||||prosecution by judiciary authorities as well as registered and||||
||||investigated by CSRC because false record, misleading statement or||||
||||important omission happens to provided or disclosed information,||||
||||CMID won't transfer its shares with rights and interests at CMPort||||
||||before case investigation conclusion is drawn;||||
||||5. In case that lockup period set forth in the commitment is||||
||||inconsistent with regulatory opinions from securities market||||
||||supervision department or lockup period required by related||||
||||provisions, CMID shall adjust the above lockup period pursuant to||||
||||regulatory opinions from relevant securities market supervision||||
||||department and related provisions.||||
||||6. After the above lockup period expires, CMID Port shall observe||||
||||provisions of laws and regulations, related rules of Shenzhen Stock||||
||||Exchange as well as Articles of Association of CMPort in case of||||
||||reducing shares held by it.||||
|Commitment|CMGD|Commitme|1. Before completion of the transaction, CMPort shares held by|26|||
||||||25 December||
|s made in|and|nt on|CMGD and Broadford Global (include increased shares because|December||Ongoing|
||||||2019||
|time of asset|Broadfo|restriction|allotment of shares, giving bonus and capital reserve converted into|2018|||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|restructuring|rd|on share|increased capital occurs to CMPort) shall not be transferred within 12||||
||Global|trading|months as of the date when the transaction is over (the registration||||
||||date of new shares by purchasing assets with shares issued this time);||||
||||2. In case that lockup period set forth in the commitment is||||
||||inconsistent with regulatory opinions from securities market||||
||||supervision department or lockup period required by related||||
||||provisions, CMGD shall adjust the above lockup period pursuant to||||
||||regulatory opinions from relevant securities market supervision||||
||||department and related provisions.||||
||||3. In case that the transaction is placed on file for investigation and||||
||||prosecution by judiciary authorities as well as registered and||||
||||investigated by CSRC because false record, misleading statement or||||
||||important omission happens to provided or disclosed information,||||
||||CMGD and Broadford Global won't transfer its shares with rights and||||
||||interests at CMPort before case investigation conclusion is drawn.||||
||||In case of losses incurred by CMGD and Broadford Global violate||||
||||fulfill the above promise to CMPort, CMGD will bear corresponding||||
||||compensation responsibility.||||
||||Share reduction plan during the period from the date of resumption of||||
||||trading of CMPort to the date of completing reorganization;||||
||||1. CMGD and Broadford Global have no share reduction plan during||||
||CMGD||||||
|Commitment||Commitme|the period from the date of resumption of trading of the transaction to||Effective until||
||and||||||
|s made in||nt on|the date of completing the transaction;|26 July|completion of||
||Broadfo|||||Fulfilled|
|time of asset||shareholdin|2. Above-mentioned shares include original CMPort shares held by|2018|the asset||
||rd||||||
|restructuring||g reduction|CMGD and Broadford Global as well as shares deriving from||restructuring||
||Global||||||
||||original shares held during the above period due to participation in||||
||||profit and presenting shares by CMPort as well as capital reserve||||
||||converted into increased capital.||||
|Commitment||Commitme|Commitment on avoiding horizontal competition:|26 July|Effective until||
||CMID|||||Ongoing|
|s made in||nts on|1. CMID and other enterprise controlled by CMID fail to engage in or|2018|no-longer to||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||
|-|-|-|-|
|time of asset|horizontal|participate in business or activity which is similar with and|be the largest|
|restructuring|competitio|constitutes or likely constitutes competitive relation with main|shareholder of|
||n,|business conducted by CMPort and the enterprise controlled by it|the Company|
||related-part|now;||
||y|2. CMID will try its best to promote CMID and other enterprise||
||transaction|controlled by CMID not to directly or indirectly engage in or||
||and capital|participate in or assist to engage in or participate in any business or||
||occupation|activity which constitutes or likely constitutes competitive relation||
|||with main business conducted by CMPort and the enterprise||
|||controlled by it now and in the future independently or together with||
|||others;||
|||3. In case of discovering any new business opportunity which||
|||constitutes or likely constitutes direct or indirect competitive relation||
|||with main business of CMPort or the enterprise controlled by it,||
|||CMID or CMID and other enterprise controlled by it will||
|||immediately notify CMPort in written as well as make a great effort||
|||to promote such business opportunity to be provided to CMPort or||
|||the enterprise controlled by it firstly according to reasonable and fair||
|||terms and conditions;||
|||4. In case of CMPort or the enterprise controlled by it waiving such||
|||competitive new business opportunity and CMID or/and other||
|||enterprise controlled by it engaging in such competitive business,||
|||CMPort or the enterprise controlled by it will have the right to||
|||purchase any stock rights, assets or other rights and interests in the||
|||above competitive business from CMID or/and other enterprise||
|||controlled by it once or several times at any moment, or CMPort will||
|||select entrusted operation, leasing or contract operation of assets or||
|||businesses of CMID or/and other enterprise controlled by it in the||
|||above competitive business as per the mode permitted by national||
|||laws and regulations;||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||5. When CMID and other enterprise controlled by it plans to transfer,||||
||||sell, rent out, conduct licensed use of or transfer or allow to use assets||||
||||and businesses which constitutes or likely constitutes direct or||||
||||indirect competitive relationship with main business of CMPort or the||||
||||enterprise controlled by it in other way, CMID and other enterprise||||
||||controlled by it will provide the right of priority assignment to||||
||||CMPort or the enterprise controlled by it and promise to make a great||||
||||effort to promote other enterprise controlled by CMID provide||||
||||CMPort or the enterprise controlled by it with the right of priority||||
||||assignment under the above situation;||||
||||6. As of the date when the commitment letter is provided, CMID||||
||||promises to compensate all actual losses, damages and expenses||||
||||arising from violation of any clause in the commitment letter by||||
||||CMID or the enterprise controlled by it to CMPort or the enterprise||||
||||controlled by it.||||
||||Commitment on regulating related-party transaction:||||
||||1. CMID and other enterprise controlled by it will make a great effort||||
||||to avoid and reduce related-party transaction between CMPort and||||
|||Commitme|||||
||||economic entity controlled by it;||||
|||nts on|||||
||||2. CMID and other enterprise controlled by it will exercise||||
|||horizontal|||||
||||stockholder's rights in accordance with related provisions of relevant||Effective until||
|Commitment||competitio|||||
||||laws and regulations as well as Articles of Association of CMPort and||no-longer to||
|s made in||n,||26 July|||
||CMID||fulfill the obligation of vote avoidance at the moment of voting for||be the largest|Ongoing|
|time of asset||related-part||2018|||
||||related-party transactions involved by CMID and other enterprise||shareholder of||
|restructuring||y|||||
||||controlled by it at the stockholders' meeting;||the Company||
|||transaction|||||
||||3. As for related-party transaction which is inevitable or occurs due to||||
|||and capital|||||
||||reasonable reason, CMID will carry out transaction pursuant to the||||
|||occupation|||||
||||principle of openness, fairness and justice for market transaction and||||
||||based on fair and reasonable market price, perform related-party||||
||||transaction decision-making process and legally fulfill information||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||disclosure obligation to safeguard benefits of CMPort and other||||
||||shareholders of CMPort in line with provisions of laws, regulations,||||
||||normative documents and Articles of Association of CMPort;||||
||||4. It's ensured that no legitimate interest of CMPort and other||||
||||shareholders of CMPort is damaged by related-party transaction||||
||||based on status and influence of CMPort;||||
||||5. CMID will promote other enterprise controlled by it to observe the||||
||||commitment of Subparagraph 1-4;||||
||||6. In case of CMID and other enterprise controlled by it violating the||||
||||above commitment, causing rights and interests of CMPort and its||||
||||shareholders are damaged, CMID will take corresponding||||
||||compensation responsibility according to law.||||
||||Commitment about keeping independence of CMPort:||||
||||1. After the transaction is completed, CMID will strictly observe||||
||||related provisions regarding independence of listed Companies from||||
||||CSRC and won't violate standard operating procedures of CMPort||||
|||Commitme|based on the first majority shareholder, conduct excessive||||
|||nts on|intervention of operation and management activities of CMPort and||||
|||horizontal|its subsidiary, embezzle benefits of CMPort and its subsidiary or||||
||||||Effective until||
|Commitment||competitio|damage legitimate interest of CMPort and other shareholders;||||
||||||no-longer to||
|s made in||n,|2. CMID will ensure CMPort is independent from CMID and related|26 July|||
||CMID||||be the largest|Ongoing|
|time of asset||related-part|parties in the aspects of business, asset, finance, personnel and|2018|||
||||||shareholder of||
|restructuring||y|institution;||||
||||||the Company||
|||transaction|3. CMID ensures independence of CMPort, CMID and other||||
|||and capital|enterprise controlled by it fail to occupy capitals and resources of||||
|||occupation|CMPort based on violation in any way and will strictly observe||||
||||provisions of rules and regulations for avoiding occupation of related||||
||||party funds from CMPort as well as related laws, regulations and||||
||||normative documents;||||
||||4. The commitment letter takes effect as of the signature date of||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||CMID as well as is legally binding upon CMID. CMID ensures it will||||
||||strictly fulfill various commitments in the commitment letter and will||||
||||take corresponding legal responsibility for losses incurred to CMPort||||
||||due to violation of related commitment.||||
||||Commitment on avoiding horizontal competition:||||
||||1. China Merchants Group and the enterprise controlled by it||||
||||(excluding CMPort Holdings and the enterprise controlled it) fail to||||
||||engage in or participate in any business or activity which is similar||||
||||with and constitutes or likely constitute direct or indirect competitive||||
||||relationship with main business conducted by CMPort and the||||
||||enterprise controlled by it now;||||
||||2. China Merchants Group will try its best to promote enterprises||||
|||Commitme|controlled by it(except for CMPort and the enterprise controlled by it)||||
|||nts on|not to directly or indirectly engage in or participate in or assist to||||
|||horizontal|engage in or participate in any business or activity which constitutes||||
||||||Effective until||
|Commitment||competitio|or likely constitutes competitive relation with main business||||
||||||no-longer to||
|s made in||n,|conducted by CMPort and the enterprise controlled by it now and in|26 July|||
||CMG||||be the actual|Ongoing|
|time of asset||related-part|the future independently or together with others;|2018|||
||||||controller of||
|restructuring||y|3. In case of discovering any new business opportunity which||||
||||||the Company||
|||transaction|constitutes and likely constitutes direct or indirect competitive||||
|||and capital|relation with main business of CMPort or the enterprise controlled by||||
|||occupation|it, China Merchants Group or enterprise controlled by it(except for||||
||||CMPort and the enterprise controlled by it) will immediately notify||||
||||CMPort in written as well as make a great effort to promote such||||
||||business opportunity to be provided to CMPort or the enterprise||||
||||controlled by it firstly according to reasonable and fair terms and||||
||||conditions;||||
||||4. In case of CMPort or the enterprise controlled by it waives such||||
||||competitive new business opportunity and China Merchants Group or||||
||||the enterprise controlled by it (except for CMPort and the enterprise||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||controlled by it) engaging in such competitive business, CMPort or||||
||||the enterprise controlled by it will be entitled to purchase any||||
||||equities, assets and other rights and interests in the above competitive||||
||||business from China Merchants Group or the enterprise controlled by||||
||||it (except for CMPort and the enterprise controlled by it) once or||||
||||several times at any moment or CMPort will select entrusted||||
||||operation, leasing or contract operation of assets or businesses of||||
||||China Merchants Group or the enterprise controlled by it (except for||||
||||CMPort and the enterprise controlled by it) in the above competitive||||
||||business according to the mode permitted by national laws and||||
||||regulations;||||
||||5. When China Merchants Group and the enterprise controlled by it||||
||||(except for CMPort and the enterprise controlled by it) plans to||||
||||transfer, sell, lease, allow to use or transfer or allow to use asset and||||
||||business which constitutes or likely constitutes direct or indirect||||
||||competitive relationship with main business of CMPort or the||||
||||enterprise controlled by it in other way, China Merchants Group and||||
||||the enterprise controlled by it (except for CMPort and the enterprise||||
||||controlled by it) will provide the right of priority assignment for||||
||||CMPort or the enterprise controlled by it and promise to make a great||||
||||effort to promote the enterprise controlled by China Merchants Group||||
||||to provide the of priority assignment for CMPort or the enterprise||||
||||controlled by it under the above situation;||||
||||6. As of the date when the commitment letter is provided, China||||
||||Merchants Group promises to compensate all actual losses, damages||||
||||and expenses arising from violation of any clause in the commitment||||
||||letter by China Merchants Group or the enterprise controlled by it to||||
||||CMPort or the enterprise controlled by it.||||
|Commitment||Commitme|Commitment on regulating related-party transaction:|26 July|Effective until||
||CMG|||||Ongoing|
|s made in||nts on|1. China Merchants Group and other enterprise controlled by it will|2018|no-longer to||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|time of asset||horizontal|make a great effort to avoid and reduce related-party transaction||be the actual||
|restructuring||competitio|between CMPort and economic entity controlled by it;||controller of||
|||n,|2. China Merchants Group and other enterprise controlled by it will||the Company||
|||related-part|exercise stockholder's rights in accordance with related provisions of||||
|||y|relevant laws and regulations as well as Articles of Association of||||
|||transaction|CMPort and fulfill the obligation of vote avoidance at the moment of||||
|||and capital|voting for related-party transactions involved by CMID and other||||
|||occupation|enterprise controlled by it at the stockholders' meeting;||||
||||3. As for related transaction which is inevitable or occurs due to||||
||||reasonable reason, China Merchants Group will carry out transaction||||
||||pursuant to the principle of openness, fairness and justice for market||||
||||transaction and based on fair and reasonable market price, perform||||
||||related-party transaction decision-making process and legally fulfill||||
||||information disclosure obligation to safeguard benefits of CMPort||||
||||and other shareholders of CMPort in line with provisions of laws,||||
||||regulations, normative documents and Articles of Association of||||
||||CMPort;||||
||||4. It's ensured that no legitimate interest of CMPort and other||||
||||shareholders of CMPort is damaged by related-party transaction||||
||||based on status and influence of CMPort;||||
||||5. China Merchants Group promotes other enterprise controlled by it||||
||||to observe the commitment set forth in Subparagraph 1-4 above;||||
||||6. In case of China Merchants Group and other enterprise controlled||||
||||by it violating the above commitment, causing rights and interests of||||
||||CMPort and its shareholders are damaged, China Merchants Group||||
||||will take corresponding compensation responsibility according to||||
||||law.||||
|Commitment||Commitme|Commitment about keeping independence of CMPort:||Effective until||
|||||26 July|||
|s made in|CMG|nts on|1. After the transaction is completed, China Merchants Group will||no-longer to|Ongoing|
|||||2018|||
|time of asset||horizontal|strictly observe related provisions regarding independence of listed||be the actual||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|restructuring||competitio|companies from CSRC and won't violate standard operating||controller of||
|||n,|procedures of CMPort based on actual controller's status, conduct||the Company||
|||related-part|excessive intervention of operation and management activities of||||
|||y|CMPort and its subsidiary, embezzle benefits of CMPort and its||||
|||transaction|subsidiary or damage legitimate interest of CMPort and other||||
|||and capital|shareholders;||||
|||occupation|2. China Merchants Group will ensure CMPort is independent from||||
||||China Merchants Group and related parties in the aspects of business,||||
||||asset, finance, personnel and institution;||||
||||3. China Merchants Group ensures independence of CMPort, China||||
||||Merchants Group and other enterprise controlled by it fail to occupy||||
||||capitals and resources of CMPort based on violation in any way and||||
||||will strictly observe provisions of rules and regulations for avoiding||||
||||occupation of related party funds from CMPort as well as related||||
||||laws, regulations and normative documents;||||
||||4. The commitment letter takes effect as of the signature date of||||
||||China Merchants Group as well is legally binding upon China||||
||||Merchants Group. China Merchants Group ensures it will strictly||||
||||fulfill various commitments in the commitment letter and will take||||
||||corresponding legal responsibility for losses incurred to listed||||
||||Company due to violation of related commitment.||||
||||1. Before completion of the transaction, CMPort shares held by or||||
|||Commitme|indirectly controlled by China Merchants Group (include increased||||
|||nts on|shares because allotment of shares, giving bonus and capital reserve||||
|Commitment|||||||
|||lock-up of|converted into increased capital occurs to CMPort) shall not be||||
|s made in||||26 July|25 December||
||CMG|shares and|transferred within 12 months as of the date when the transaction is|||Ongoing|
|time of asset||||2018|2019||
|||shareholdin|over (the registration date of new shares by purchasing assets with||||
|restructuring|||||||
|||g reduction|shares issued this time);||||
|||plan|2. In case that lockup period set forth in the commitment is||||
||||inconsistent with regulatory opinions from securities market||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||supervision department or lockup period required by related||||
||||provisions, China Merchants Group shall adjust the above lockup||||
||||period pursuant to regulatory opinions from relevant securities||||
||||market supervision department and related provisions.||||
||||3. In case that the transaction is placed on file for investigation and||||
||||prosecution by judiciary authorities as well as registered and||||
||||investigated by CSRC because false record, misleading statement or||||
||||important omission happens to provided or disclosed information,||||
||||China Merchants Group won't transfer its shares with rights and||||
||||interests at listed Company before case investigation conclusion is||||
||||drawn;||||
||||4. During the period from the date of resumption of trading of the||||
||||transaction to the date when the transaction is over, China Merchants||||
||||Group has no share reduction plan. The above shares include original||||
||||CMPort shares directly held or indirectly controlled by China||||
||||Merchants Group as well as derivative shares of original shares||||
||||directly held or indirectly controlled during the above period due to||||
||||participation in profit and presenting shares by CMPort as well as||||
||||capital reserve converted into increased capital.||||
||||Commitment letter about perfecting the property ownership||||
||||certificate for land and house property of CMPort Holdings and the||||
||||enterprise subordinate to it:||||
||||1. China Merchants Group will spare no effort to assist, promote and||Effective until||
|Commitment|||||||
|||Other|drive CMPort Holdings and the enterprise subordinate to it to||no-longer to||
|s made in||||26 July|||
||CMG|commitme|standardize, perfect and solve ownership defects of properties such as||be the actual|Ongoing|
|time of asset||||2018|||
|||nt|land and house property;||controller of||
|restructuring|||||||
||||2. The following situations happen to CMPort Holdings and the||the Company||
||||enterprise subordinate to it before completion of the transaction: (1)||||
||||Land use right of ownership certificate which is being handled, the||||
||||house property failing to be timely handled (except for results||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||incurred by force majeure, law, policy, government administration||||
||||behavior and change in planned use of the land instead of CMPort||||
||||Holdings and the enterprise subordinate to it); Or (2) Land use right||||
||||of ownership certificate, the property ownership certificate failing to||||
||||be handled (except for results incurred by force majeure, law, policy,||||
||||government administration behavior and change in planned use of the||||
||||land of CMPort Holdings and the enterprise subordinate to it); Or (3)||||
||||In case of nonstandard other land use right and house property||||
||||(except for results incurred by force majeure, law, policy, government||||
||||administration behavior and change in planned use of the land instead||||
||||of CMPort Holdings and the enterprise subordinate to it) and||||
||||encountering actual losses (including but not limited to||||
||||compensation, fine, expenditure and benefit lost), China Merchants||||
||||Group will timely and fully compensate CMPort.||||
||||Commitment letter about real estate leased by CMPort Holdings and||||
||||the enterprise subordinate to it:||||
||||In case of nonstandard situation of the leased property significantly||||
||||influencing use of CMPort Holdings and the Company subordinate to||||
||||it to engage in operation of normal business, China Merchants Group||||
||||will actively take effective measures (including but not limited to||||
||||||Effective until||
|Commitment|||arranging to provide the property with identical or similar conditions||||
|||Other|||no-longer to||
|s made in|||to be used for operation of related Company) to promote business|26 July|||
||CMG|commitme|||be the actual|Ongoing|
|time of asset|||operation of related Company to be conducted normally and alleviate|2018|||
|||nt|||controller of||
|restructuring|||or eliminate adverse effect; In case of nonstandard of the leased||||
||||||the Company||
||||property causing CMPort Holdings and the enterprise subordinate to||||
||||it produce actual additional expenditures or losses (such as third-party||||
||||compensation), China Merchants Group will actively coordinate and||||
||||negotiate with other related party to support normal operation of||||
||||CMPort Holdings and the enterprise subordinate to it to the great||||
||||extent and avoid or control continuous enlargement of the damage; At||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||the same time, China Merchants Group agrees compensate CMPort||||
||||Holdings and the enterprise subordinate to it in cash for actual losses||||
||||incurred to CMPort Holdings and the enterprise subordinate to it for||||
||||this reason to relieve or eliminate adverse effect.||||
||||Commitment letter about allotted land of the enterprise subordinate to||||
||||China Merchants Port Holdings Company Limited from China||||
||||Merchants Group:||||
||||In case that the above allotted land is withdrawn or needs to be||||
||||translated into assignment land due to policy adjustment in the future||||
||||after the transaction is completed, China Merchants Group will||||
||||actively coordinate with CMPort and related companies such as||Effective until||
|Commitment|||||||
|||Other|China Merchants Group International Port (Qingdao) Co., Ltd. and||no-longer to||
|s made in||||26 July|||
||CMG|commitme|Shantou CMPort Group Co., Ltd. to handle the transfer procedure or||be the actual|Ongoing|
|time of asset||||2018|||
|||nt|take other feasible countermeasures. In case of any actual loss||controller of||
|restructuring|||||||
||||(excluding land-transferring fees or rent, fees paid for taking rural||the Company||
||||land, ownership registration fees, taxes and dues and other related||||
||||expenses to be paid by Chiwan Wharf or above-mentioned related||||
||||companies according to provisions of laws and regulations) incurred||||
||||to CMPort or above-mentioned related companies for this reason,||||
||||China Merchants Group will timely and fully compensate actual loss||||
||||incurred to CMPort or above-mentioned related companies.||||
||||Commitment letter about undertaking the accreditation fees of||||
||||property ownership certificate for the perfection of the land and||||
||||house property of CMPort Holdings and the enterprise subordinate to||Effective until||
|Commitment|||||||
|||Other|it:|14|no-longer to||
|s made in|||||||
||CMG|commitme|In case of defective land use right and house property involved by the|September|be the actual|Ongoing|
|time of asset|||||||
|||nt|Company subordinate to CMPort Holdings on account of operation|2018|controller of||
|restructuring|||||||
||||(namely land use right and house property of the Company||the Company||
||||subordinate to CMPort Holdings without complete ownership||||
||||certificate existing before the transaction is completed), incurring||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||registration fees such as taxes and dues, compensation and fine in the||||
||||process of perfecting legal procedures of defective land use right and||||
||||house property by the subordinate to CMPort Holdings, China||||
||||Merchants Group will timely and fully compensate to the Company||||
||||subordinate to CMPort Holdings for undertaking.||||
||||Commitment letter about related matters of CMPort after the||||
||||transaction is completed:||||
||||After the transaction is completed, Chiwan Wharf will become port||||
||||||Three to five||
||||business asset management headquarters and domestic capital||||
||||||years and||
||||operation platform of China Merchants Group, deeply participate in||||
||||||CMG is the||
||||integration of domestic regional port assets and enlarge the scale of||||
|Commitment|||||||
||||||actual||
|||Other|domestic listed assets to make net profit of CMPort Holdings|30|||
|s made in|||||||
||||||controller of||
||CMG|commitme|(00144.HK) enjoyed as per the rights and interests in the consolidated|September||Ongoing|
|time of asset|||||||
||||||the Company||
|||nt|statement of listed Company in recent one fiscal year fail to exceed|2018|||
|restructuring|||||||
||||50% net profit of consolidated statement of the listed Company and||||
||||net asset of CMPort Holdings (00144.HK) enjoyed in light of rights||||
||||and interests in the consolidated statement of listed Company in||||
||||recent one fiscal year fail to exceed 30% net asset in the consolidated||||
||||statement of the listed Company within 3-5 years after the transaction||||
||||is completed.||||
||||China Merchants Group and all its directors, supervisors and||||
||||administrative officers ensure the transaction report, its abstract, other||||
||||information provided for the transaction and application document||||
|Commitment|||are true, accurate and complete without false record, misleading||||
|||Other|||||
|s made in|||statement or important omission as well as take individual and joint|26 July|Effective||
||CMG|commitme||||Ongoing|
|time of asset|||legal liability for false record, misleading statement or important|2018|continuously||
|||nt|||||
|restructuring|||omission.||||
||||If the information provided or disclosed by this transaction is||||
||||suspected of false records, misleading statements or major omissions,||||
||||and is investigated by the judicial authorities or investigated by the||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||China Securities Regulatory Commission (CSRC), the directors,||||
||||supervisors or senior managers of China Merchants Group do not||||
||||transfer the shares that have interests in listed Company, and submit||||
||||the written application and stock account of the suspension of the||||
||||transfer to the Board of Directors of the CMPort within two trading||||
||||days after receiving the filing inspection notice, and the Board of||||
||||Directors shall apply for lock-up on behalf of the CMG Hong Kong||||
||||to the Stock Exchange and Registration and Settlement Company.||||
||||In case of failing to file a locking application within two transaction||||
||||days and after the Board of Directors is authorized for verification,||||
||||identity information and account information on directors,||||
||||supervisors or administrative officers of China Merchants Group will||||
||||be directly submitted to Stock Exchange and Registration and||||
||||Settlement Company with locking applied; In case of Board of||||
||||Directors failing to submit identity information and account||||
||||information on directors, supervisors or administrative officers of||||
||||China Merchants Group to Stock Exchange and Registration and||||
||||Settlement Company, Stock Exchange and Registration and||||
||||Settlement Company will be authorized to directly lock related||||
||||shares. In case that the situation of violating laws and rules is found||||
||||upon investigation conclusion, directors, supervisors or||||
||||administrative officers of China Merchants Group promise locked||||
||||shares are voluntarily used for compensating related investors.||||
||||Share reduction plan during the period from the date of resumption of||||
||||trading of CMPort to the date of completing reorganization;||||
|Commitment||Commitme|||Effective until||
||CMG||1. CMG Hong Kong and Broadford Global have no share reduction||||
|s made in||nt on||26 July|completion of||
||Hong||plan during the period from the date of resumption of trading of the|||Fulfilled|
|time of asset||shareholdin||2018|the asset||
||Kong||transaction to the date of completing the transaction;||||
|restructuring||g reduction|||restructuring||
||||2. Above-mentioned shares include original CMPort shares held by||||
||||CMG Hong Kong as well as shares deriving from original shares held||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||during the above period due to participation in profit and presenting||||
||||shares by CMPort as well as capital reserve converted into increased||||
||||capital.||||
||||1. CMG Hong Kong ensures related information provided for the||||
||||transaction is true, accurate and complete without false record,||||
||||misleading statement or important omission;||||
||||2. CMG Hong Kong ensures the data provided to CMPort and all||||
||||intermediary organs participating in the transaction is true, accurate||||
||||and complete original written data or data copy. Data copy is||||
||||consistent with original data and signature and seal of all the||||
||||documents are true. The signatory of such documents is legally||||
||||authorized and effectively signs such documents without any false||||
||||record, misleading statement or important omission;||||
||||3. CMG Hong Kong ensures descriptions and confirmations issued||||
||||for the transaction is true, accurate and complete without false record,||||
|Commitment|||||||
||CMG|Other|misleading statement or important omission;||||
|s made in||||26 July|Effective||
||Hong|commitme|4. CMG Hong Kong ensures that statutory disclosure and report|||Ongoing|
|time of asset||||2018|continuously||
||Kong|nt|obligation has been performed, and no contracts, agreements,||||
|restructuring|||||||
||||arrangements or miscellaneous that should have been disclosed||||
||||exists;||||
||||5. The CMG Hong Kong made the commitment that if the||||
||||information provided or disclosed by this transaction is suspected of||||
||||false records, misleading statements or major omissions, and is||||
||||investigated by the judicial authorities or investigated by the China||||
||||Securities Regulatory Commission (CSRC), it does not transfer the||||
||||shares that have interests in listed Company, and submit the written||||
||||application and stock account of the suspension of the transfer to the||||
||||Board of Directors of the CMPort within two trading days after||||
||||receiving the filing inspection notice, and the Board of Directors shall||||
||||apply for lock-up on behalf of the CMG Hong Kong to the Stock||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||Exchange and Registration and Settlement Company. In case of||||
||||failing to file a locking application within two transaction days and||||
||||after the Board of Directors is authorized for verification, identity||||
||||information and account information on CMG Hong Kong will be||||
||||directly submitted to Stock Exchange and Registration and||||
||||Settlement Company with locking applied; In case of Board of||||
||||Directors failing to submit identity information and account||||
||||information on CMG Hong Kong to Stock Exchange and Registration||||
||||and Settlement Company, Stock Exchange and Registration and||||
||||Settlement Company will be authorized to directly lock related||||
||||shares. If the investigation finds that there is a violation of the law,||||
||||CMG Hong Kong committed to lock the shares voluntarily for the||||
||||relevant investor compensation;||||
||||6. If CMG Hong Kong promises to related document, data and||||
||||information provided in the reorganization process aren't true,||||
||||accurate or complete or are with false record, misleading statement or||||
||||important omission, CMG Hong Kong is willing to legally bear||||
||||corresponding legal responsibility;||||
||||7. In case of CMG Hong Kong violating the above promise, incurring||||
||||losses to CMPort, CMG Hong Kong will take corresponding||||
||||compensation responsibility.||||
||||1.CMID ensures related information provided for the transaction is||||
||||true, accurate and complete without false record, misleading||||
||||statement or important omission;||||
|Commitment|||||||
|||Other|2. CMID ensures the data provided to CMPort and all intermediary||||
|s made in||||26 July|Effective||
||CMID|commitme|organs participating in the transaction is true, accurate and complete|||Ongoing|
|time of asset||||2018|continuously||
|||nt|original written data or data copy. Data copy is consistent with||||
|restructuring|||||||
||||original data and signature and seal of all the documents are true. The||||
||||signatory of such documents is legally authorized and effectively||||
||||signs such documents without any false record, misleading statement||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||
|-|
|or important omission;|
|3. CMID ensures description and confirmation provided for the|
|transaction are true, accurate and complete without any false record,|
|misleading statement or important omission;|
|4. CMID ensures that statutory disclosure and report obligation has|
|been performed, and no contracts, agreements, arrangements or|
|miscellaneous that should have been disclosed exists;|
|5. The CMID made the commitment that if the information provided|
|or disclosed by this transaction is suspected of false records,|
|misleading statements or major omissions, and is investigated by the|
|judicial authorities or investigated by the China Securities Regulatory|
|Commission (CSRC), it does not transfer the shares that have|
|interests in CMPort, and submit the written application and stock|
|account of the suspension of the transfer to the Board of Directors of|
|the CMPort within two trading days after receiving the filing|
|inspection notice, and the Board of Directors shall apply for lock-up|
|on behalf of the CMG Hong Kong to the Stock Exchange and|
|Registration and Settlement Company. If the application for lock-up|
|is not submitted within two transaction days, the Board of Directors|
|is authorized to verify and submit the identity information and|
|account information of CMID directly to the Stock Exchange and|
|Registration and Settlement Company and apply for lock-up; If the|
|Board of Directors fails to submit the identity information and|
|account information of the CMID to the Stock Exchange and|
|Registration and Settlement Company, then the Stock Exchange and|
|Registration and Settlement Company shall be authorized to directly|
|lock the relevant shares. If the investigation finds that there is a|
|violation of the law, CMID committed to lock the shares voluntarily|
|for the relevant investor compensation;|
|6. If CMID promises to related document, data and information|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||provided in the reorganization process aren't true, accurate or||||
||||complete or are with false record, misleading statement or important||||
||||omission, CMID is willing to legally bear corresponding legal||||
||||responsibility;||||
||||7. In case of CMID violating the above commitment, incurring losses||||
||||to CMPort, CMID will take corresponding compensation||||
||||responsibility.||||
||||1.CMID ensures related information provided for the transaction is||||
||||true, accurate and complete without false record, misleading||||
||||statement or important omission;||||
||||2. CMID ensures the data provided to CMPort and all intermediary||||
||||organs participating in the transaction is true, accurate and complete||||
||||original written data or data copy. Data copy is consistent with||||
||||original data and signature and seal of all the documents are true. The||||
||||signatory of such documents is legally authorized and effectively||||
||||signs such documents without any false record, misleading statement||||
||||or important omission;||||
|Commitment|||||||
||CMPort|Other|3. CMID ensures description and confirmation provided for the||||
|s made in||||26 July|Effective||
||Holding|commitme|transaction are true, accurate and complete without any false record,|||Ongoing|
|time of asset||||2018|continuously||
||s|nt|misleading statement or important omission;||||
|restructuring|||||||
||||4. CMID ensures that statutory disclosure and report obligation has||||
||||been performed, and no contracts, agreements, arrangements or||||
||||miscellaneous that should have been disclosed exists;||||
||||5. The CMID made the commitment that if the information provided||||
||||or disclosed by this transaction is suspected of false records,||||
||||misleading statements or major omissions, and is investigated by the||||
||||judicial authorities or investigated by the China Securities Regulatory||||
||||Commission (CSRC), it does not transfer the shares that have||||
||||interests in CMPort, and submit the written application and stock||||
||||account of the suspension of the transfer to the Board of Directors of||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||the CMPort within two trading days after receiving the filing||||
||||inspection notice, and the Board of Directors shall apply for lock-up||||
||||on behalf of the CMG Hong Kong to the Stock Exchange and||||
||||Registration and Settlement Company. If the application for lock-up||||
||||is not submitted within two transaction days, the Board of Directors||||
||||is authorized to verify and submit the identity information and||||
||||account information of CMID directly to the Stock Exchange and||||
||||Registration and Settlement Company and apply for lock-up; If the||||
||||Board of Directors fails to submit the identity information and||||
||||account information of the CMID to the Stock Exchange and||||
||||Registration and Settlement Company, then the Stock Exchange and||||
||||Registration and Settlement Company shall be authorized to directly||||
||||lock the relevant shares. If the investigation finds that there is a||||
||||violation of the law, CMID committed to lock the shares voluntarily||||
||||for the relevant investor compensation;||||
||||6. If CMID promises to related document, data and information||||
||||provided in the reorganization process aren't true, accurate or||||
||||complete or are with false record, misleading statement or important||||
||||omission, CMID is willing to legally bear corresponding legal||||
||||responsibility;||||
||||7. In case of CMID violating the above commitment, incurring losses||||
||||to CMPort, CMID will take corresponding compensation||||
||||responsibility.||||
||||1. China Merchants Group ensures related information provided for||||
||||the transaction is true, accurate and complete without false record,||||
|Commitment|||||||
|||Other|misleading statement or important omission;||||
|s made in||||26 July|Effective||
||CMG|commitme|2. China Merchants Group ensures the data provided to CMPort and|||Ongoing|
|time of asset||||2018|continuously||
|||nt|all intermediary organs participating in the transaction is true,||||
|restructuring|||||||
||||accurate and complete original written data or data copy. Data copy is||||
||||consistent with original data and signature and seal of all the||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||
|-|
|documents are true. The signatory of such documents is legally|
|authorized and effectively signs such documents without any false|
|record, misleading statement or important omission;|
|3. China Merchants Group ensures descriptions and confirmations|
|issued for the transaction is true, accurate and complete without false|
|record, misleading statement or important omission;|
|4. China Merchants Group ensures that statutory disclosure and|
|report obligation has been performed, and no contracts, agreements,|
|arrangements or miscellaneous that should have been disclosed|
|exists;|
|5. China Merchants Group made the commitment that if the|
|information provided or disclosed by this transaction is suspected of|
|false records, misleading statements or major omissions, and is|
|investigated by the judicial authorities or investigated by the China|
|Securities Regulatory Commission (CSRC), it does not transfer the|
|shares that have interests in CMPort, and submit the written|
|application and stock account of the suspension of the transfer to the|
|Board of Directors of the CMPort within two trading days after|
|receiving the filing inspection notice, and the Board of Directors shall|
|apply for lock-up on behalf of the CMG Hong Kong to the Stock|
|Exchange and Registration and Settlement Company. In case of|
|failing to file a locking application within two transaction days and|
|after the Board of Directors is authorized for verification, identity|
|information and account information of China Merchants Group will|
|be directly submitted to Stock Exchange and Registration and|
|Settlement Company with locking applied; In case of Board of|
|Directors failing to submit identity information and account|
|information of China Merchants Group to Stock Exchange and|
|Registration and Settlement Company, Stock Exchange and|
|Registration and Settlement Company will be authorized to directly|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||lock related shares. If the investigation finds that there is a violation||||
||||of the law, China Merchants Group committed to lock the shares||||
||||voluntarily for the relevant investor compensation;||||
||||6. If China Merchants Group promises to related document, data and||||
||||information provided in the reorganization process aren't true,||||
||||accurate or complete or are with false record, misleading statement or||||
||||important omission, China Merchants Group is willing to legally bear||||
||||corresponding legal responsibility;||||
||||In case of China Merchants Group violating the above promise,||||
||||incurring losses to CMPort, China Merchants Group will take||||
||||corresponding compensation responsibility.||||
||||Chiwan Wharf and all its directors, supervisors and administrative||||
||||officers ensure the transaction report, its abstract, other information||||
||||provided for the transaction and application document are true,||||
||||accurate and complete without false record, misleading statement or||||
||||important omission as well as take individual and joint legal liability||||
||Chiwan||||||
||||for false record, misleading statement or important omission.||||
||Wharf||||||
||||If the information provided or disclosed by this transaction is||||
||and all||||||
||||suspected of false records, misleading statements or major omissions,||||
|Commitment|directors||||||
|||Other|and is investigated by the judicial authorities or investigated by the||||
|s made in|,|||26 July|Effective||
|||commitme|China Securities Regulatory Commission (CSRC), the directors,|||Ongoing|
|time of asset|supervis|||2018|continuously||
|||nt|supervisors, or senior managers of Chiwan Wharf do not transfer the||||
|restructuring|ors and||||||
||||shares that have interests in listed Company, and submit the written||||
||senior||||||
||||application and stock account of the suspension of the transfer to the||||
||manage||||||
||||Board of Directors of the CMPort within two trading days after||||
||ment||||||
||||receiving the filing inspection notice, and the Board of Directors shall||||
||||apply for lock-up on behalf of the CMG Hong Kong to the Stock||||
||||Exchange and Registration and Settlement Company. In case of||||
||||failing to file a locking application within two transaction days and||||
||||after the Board of Directors is authorized for verification, identity||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
||||information and account information on directors, supervisors or||||
||||administrative officers of Chiwan Wharf will be directly submitted to||||
||||Stock Exchange and Registration and Settlement Company with||||
||||locking applied; In case of Board of Directors failing to submit||||
||||identity information and account information on directors,||||
||||supervisors or administrative officers of Chiwan Wharf to Stock||||
||||Exchange and Registration and Settlement Company, Stock||||
||||Exchange and Registration and Settlement Company will be||||
||||authorized to directly lock related shares. In case that the situation of||||
||||violating laws and rules is found upon investigation conclusion,||||
||||directors, supervisors or administrative officers of Chiwan Wharf||||
||||promise locked shares are voluntarily used for compensating related||||
||||investors||||
||Chiwan||Share reduction plan during the period from the date of resumption of||||
||Wharf||trading of CMPort to the date of completing reorganization;||||
||and all||1. I have no share reduction plan during the period from the date of||||
|Commitment|directors|Commitme|resumption of trading of the transaction to the date when the||Effective until||
|s made in|,|nt on|transaction is over.|26 July|completion of||
|||||||Fulfilled|
|time of asset|supervis|shareholdin|2. Above-mentioned shares include original shares of listed Company|2018|the asset||
|restructuring|ors and|g reduction|held by me as well as derivative shares of original shares caused by||restructuring||
||senior||participation in profit and presenting shares by listed Company as||||
||manage||well as capital reserve converted into increased capital during the||||
||ment||above period.||||
||||China Nanshan Development(group) Incorporation will irrevocably||||
||China|||20 March|||
|Other|||and unconditionally agrees it will ensure transferee of such land use||||
||Nanshan|||2001, 18|||
|commitment||Other|right and its successor and assignee will be fully exempted from||||
||Develop|||June 2003,|Effective||
|s made to||commitme|responsibility for the above matters in case of CMPort encountering|||Ongoing|
||ment|||29|continuously||
|minority||nt|losses, needing to bear expenses and liabilities, undergoing claim for||||
||(Group)|||September|||
|shareholders|||compensation or needing to file a lawsuit due to any actual or||||
||Inc.|||2004|||
||||potential illegal and unenforceable issues incurred by land use||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|||agreement and relevant documents signed and to be signed by it.|
|Specific|||
|reasons for|||
|failing to|||
|fulfill|||
|commitment|N/A||
|s on time and|||
|plans for|||
|next step|||
|(if any)|||

2. Where there Had Been an Earnings Forecast for an Asset or Project and the Reporting Period Was still within the Forecast Period, Explain why the Forecast Has Been Reached for the Reporting Period.
□Applicable√ Not applicable
China Merchants Port Group Co., Ltd. Annual Report 2018 IV Occupation of theCompany’s Capital by the Controlling Shareholder or Its Related Parties for Non-Operating Purposes
During the Reporting Period, the controlling shareholder or its related parties did not occupy capital for non-operating purposes or repay such capital. Deloitte Touche Tohmatsu Certified Public Accountants LLP issued the “Special Report on Capital Occupation by the Controlling Shareholder and Other Related Parties of China Merchants Port Group Co., Ltd. For the detailed report, see the website www.cninfo.com.cn.
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial Statements of the Reporting Period
□ Applicable√ Not applicable
VI YoY Changes to Accounting Policies, Estimates and Methods
The changes in accounting policies of the Company are as follows: on 31 March 2017, the Ministry of Finance issued Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments (hereinafter referred to as “Revised Standards No.22”), Accounting Standards for Business Enterprises No.23-Transfer of Financial Assets (hereinafter referred to as “Revised Standards No.23”), Accounting Standards for Business Enterprises No.24-Hedge Accounting (hereinafter referred to as “Revised Standards No.24”); on 2 May 2017, the Ministry of Finance issued Accounting Standards for Business Enterprises No.37-Presentation of Financial Instruments (hereinafter referred to as “Revised Standards No.37”); on 5 July 2017, the Ministry of Finance issued Accounting Standards for Business Enterprises No.14-Income (hereinafter referred to as “Revised Standards No.14”). The Company starts to implement the Revised Standards No.22, No.23, No.24, No.37 and No.14 in accordance with requirements stipulated in documents of the Ministry of Finance since 1 January 2018. For more details, please refer to the Announcement on Changes in Accounting Policies (announcement No.: 2018-025) disclosed on cninfo.com.cn by the Company on 7 March 2018.
On 27 November 2018, the Company held the 8th Extraordinary Meeting of the 9th Directors of the
China Merchants Port Group Co., Ltd. Annual Report 2018 Board in 2018 and the 5th Extraordinary Meeting of the 9th Supervisory Committee in 2018, on which the Proposal on Changes in Accounting Estimate of Fixed Assets was reviewed and approved. In line with the Accounting Standards for Business Enterprises No.4-Fixed Assets and relevant regulations of the Company, the Company rechecked the estimated useful life and expected net residual value of fixed assets based on the current performance and service condition of fixed assets and decided to adjust the depreciation life of partial fixed assets and net residual value of total fixed assets so as to make it more reasonable and reflect theCompany’s financial condition and operating results more objectively and fairly. For more details, please refer to the Announcement on Changes in Accounting Estimate of Fixed Assets (announcement No.: 2018-104) disclosed on cninfo.com.cn by the Company on 28 November 2018.
For further information, please refer to (III) Changes in Main Accounting Policies and Estimates in Part XI Financial Statements for details.
VII Retrospective Restatements due to Correction of Material Accounting Errors in the Reporting Period
No such cases in the Reporting Period.
VIII YoY Changes to the Scope of the Consolidated Financial Statements
During the year under review, the Company acquired a51% interest in China Merchants Port (Zhoushan) RoRo Logistics Co., Ltd. (“Zhoushan RoRo”). Zhoushan RoRo changed its directors, supervisors and senior management with the industrial and commercial administration on 29 August 2018 and officially became a majority-owned subsidiary of the Company. From that day on, the Company includes Zhoushan RoRo into the consolidated financial statements. The above-mentioned acquisition fits the definition of an assets acquisition, and does not constitute business or a business combination. Thus, it is recognized as a change to the consolidation scope caused by other reasons.
The Company and China Merchants Investment Development Company Limited (hereinafter referred to as “CMID”) signed the Agreement on Asset Acquisition through the Issue of Shares on 19 June 2018, which was approved by China Securities Regulatory Commission through the Reply on the Approval of the Issue of Shares by Shenzhen Chiwan Wharf Holdings Limited to China
China Merchants Port Group Co., Ltd. Annual Report 2018 Merchants Investment Development Company Limited for Asset Acquisition and Raising of Supporting Funds (ZJXK[2018] No. 1750). The Company issued shares to CMID to acquire 1,313,541,560 ordinary shares (hereinafter referred to as “the target assets”) of China Merchants Port Holdings Company Limited (hereinafter referred to as CMPort Holdings) held by CMID. According to the transaction bills affixed with the stamp duty of Hong Kong dated 15 November 2018 and the Daily Settlement Book of ChiwanWharf’s stock account produced on 16 November 2018 by China Merchants Securities (HK) Co., Ltd., the stock agent in Hong Kong, the 1,313,541,560 CMPort Holdings ordinary shares have been registered under the name of the Company, marking that the procedures for the registration of the ownership transfer in respect of the target assets has been completed. As at 25 December 2018, the procedures for the registration of the shares issued by the Company to the counterparty CMID had been completed in CSDCC Shenzhen. Thus, the Company has controlled and consolidated CMPort Holdings. For more details, please refer to the Announcement of Shenzhen Chiwan Wharf Holdings Limited on the Issue of Shares to Acquire Assets and Raise Supporting Funds and the Attainment of the Approval from CSRC for Related-party Transactions (Announcement No. 2018-094), and the Report of China Merchants Port Group Co., Ltd. on the Issue of Shares to Acquire Assets and Raise Supporting Funds and the Implementation of Related-party Transactions and the Listing of New Shares published on CNINFO (http://www.cninfo.com.cn) on 1 November 2018 and 24 December 2018 respectively.
On 25 December 2018, the Company completed the issue of shares to the counterparty CMID and achieved the control over CMPort Holdings in form and nature. In accordance with the related provisions in the Accounting Standards for Business Enterprises No. 33 - Consolidated Financial Statements, the Company started to consolidate the financial statements of CMPort Holdings from December 2018, and adjusted the beginning and last year data in the comparative financial statements according to the rules governing business combinations under common control.
IX Engagement and Disengagement of Independent Auditor
Current independent auditor
|||
|-|-|
||Deloitte Touche Tohmatsu Certified Public AccountantsLLP|
|Name of the domestic independent auditor||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||
|-|-|
|The Company’s payment to the domestic independent||
||1,236.25|
|auditor (RMB’0,000)||
|How many consecutive years the domestic independent||
||7|
|auditor has provided audit service for the Company||
|Names of the certified public accountants from the||
|domestic independent auditor writing signatures on the|Huang Yue and Jiang Qishen|
|auditor’s report||
|How many consecutive years the certified public||
|accountants have provided audit service for the|2|
|Company||
|Name of the overseas independent auditor (if any)|Deloitte Touche Tohmatsu|
|The Company’s payment to the overseas independent||
||945.63|
|auditor (RMB’0,000) (if any)||
|How many consecutive years the overseas independent||
|auditor has provided audit service for the Company (if|7|
|any)||
|Names of the certified public accountants from the||
|overseas independent auditor writing signatures on the|Zhong Zhiwen|
|auditor’s report (if any)||
|How many consecutive years the certified public||
|accountants have provided audit service for the|2|
|Company (if any)||

Indicate by tick mark whether the independent auditor was changed for the Reporting Period.□ Yes√ No
Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:
Approved by the 2017 Annual General Meeting of the Company, the Company was allowed to continuously engage Deloitte Touche Tohmatsu Certified Public Accountants LLP as the 2018 independent auditor for the audit of annual financial statements and internal control in the current year. The audit price for 2018 annual financial statements was RMB1.64 million and the price for internal control was RMB0.3 million. The total expense on aforesaid two audit work was RMB1.94 million.
Since the business consolidation under the same control occurred for the Company in 2018, the consolidation scope increased CMPort Holdings whose financial statements of 2018 were audited by Deloitte Touche Tohmatsu. The total audit expenses (including financial statements audit of
subsidiaries) were RMB1,2,201,800, among which, RMB9,456,300 paid for Deloitte Touche
China Merchants Port Group Co., Ltd. Annual Report 2018 Tohmatsu, and RMB2,745,500 for Deloitte Touche Tohmatsu Certified Public Accountants LLP. Considering the asset restructuring occurring in 2018, the Company needs to engage the agency to audit the financial statements for the Company with 31 March 2018 as the base date for companies involved in the restructuring. As for the audit expenses on engagement of independent auditors, RMB7.677 million was paid to Deloitte Touche Tohmatsu Certified Public Accountants LLP, RMB1.46 million to Ernst& Young Global Limited, RMB3.7 million to BDO China Shu Lun Pan Certified Public Accountants LLP, RMB163,300 to Klynveld Peat Marwick Goerdeler (KPMG) and Price waterhouse Coopers (PWC).
The expenses on financial advisors was RMB49 million for engagement of CITIC Securities Co., Ltd. and China Merchants Securities Co. Ltd.
X Possibility of Listing Suspension or Termination after Disclosure of this Report
□ Applicable√ Not applicable
XI Insolvency and Reorganization
□ Applicable√ Not applicable
XII Major Legal Matters
□ Applicable√ Not applicable
XIII Punishments and Rectifications
□ Applicable√ Not applicable
XIV Credit Quality of the Company as well as Its Controlling Shareholder and Actual Controller
□ Applicable√ Not applicable
XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for Employees
□ Applicable√ Not applicable
China Merchants Port Group Co., Ltd. Annual Report 2018 XVI Major Related-Party Transactions
1. Continuing Related-Party Transactions
U Unit:RMB’0,000
||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Related party||RelationshipwiththeCompany|Typeoftransaction|Specifictransaction|Pricingprinciple||Transactionprice|Totalvalue|||As %|Approvedtransactionline|Overtheapprovedlineornot|Method ofsettlement||Obtai|Disclosuredate|Index todisclosedinformation|
||||||||||||of|||||nable|||
||||||||||||total|||||marke|||
||||||||||||value|||||t price|||
||||||||||||of all|||||for|||
||||||||||||same-|||||same-|||
||||||||||||type|||||type|||
||||||||||||transa|||||transa|||
||||||||||||ctions|||||ctions|||
||China|OriginalshareholderofChiwanWharf|Services|Servicesrelated toterminal|Bilateralnegotiation||6,887.75|6,887.75||17.37%||10,000.00|No|Settledaccordingtotimes|6,887.75||7February2018|Refer toAnnouncement on ForecastofRelated-partyTransactionsfor 2018(Announcement No.2018-012)published onhttp://www.cninfo.com.cnfor details.|
||Merch||||||||||||||||||
||ants||||||||||||||||||
||Port||||||||||||||||||
||Holdin||||||||||||||||||
||gs||||||||||||||||||
||Compa||||||||||||||||||
||ny||||||||||||||||||
||Limite||||||||||||||||||
||d and||||||||||||||||||
||its||||||||||||||||||
||affiliat||||||||||||||||||
||ed||||||||||||||||||
||compa||||||||||||||||||
||nies||||||||||||||||||
||China|Affiliatedlegalperson|Lease|Landlease|Bilateralnegotiation||6,523.02|6,523.02||40.02%||7,500.00|No|Settledmonthly|6,523.02||7February2018||
||Nansha||||||||||||||||||
||n||||||||||||||||||
||Develo||||||||||||||||||
||pment||||||||||||||||||
||(Group||||||||||||||||||
||)||||||||||||||||||
||Incorp||||||||||||||||||
||oration||||||||||||||||||
|Total|||||--||--||13,4|--||17,500.00|--|--|--||--|--|
||||||||||10.7||||||||||
||||||||||7||||||||||
||Large-amount sales return in detail|||||N/A|||||||||||||
||Give the actual situation in the|||||N/A|||||||||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||
|-|-|
|Reporting Period (if any) where an||
|estimate had been made for the||
|total value of continuing||
|related-party transactions by type||
|to occur in the Reporting Period||
|Reason for any significant|N/A|
|difference between the transaction||
|price and the market reference||
|price (if applicable)||

* The original director of the Company Zhang Jianguo (left for less than 12 months) is the vice general manager and CFO of China Nanshan Development (Group) Inc.. In line with provisions of Shenzhen Stock Exchange Stock Listing Regulations, China Nanshan Development (Group) is the affiliated legal person of the Company.
Related-party transaction of providing daily operation of labor service between CMPort Holdings (00144.HK) and related party-QQCTU occurs and actual amount is RMB59.87 million. Besides, the daily related-party transaction of leased land between CMPort Holdings and CMSK happens and actual amount is RMB43.46 million. Related-party transactions such as providing labor service and accepting labor service as well as providing lease and accepting lease between CMPort Holdings and other related parties occur and actual amount is RMB0.336 billion. As for related-party transactions occurring before reorganization of CMPort Holdings and the Company, corresponding procedures have been completed in accordance with rules of stock exchange Company. (Note: small total of above-mentioned other related parties covers labor service provided by related parties such as China Ocean Shipping Tally Shenzhen Co., Ltd., Merchants Property Management (Qingdao) Co., Ltd. and CM Houlder Insurance Brokers Limited to the Company as well as related parties (including Qingdao Sinotrans Supply Chain Management Co., Ltd., Guangzhou Hangshang International Shipping Agency Co., Ltd. and China Overseas Harbour Affairs (Laizhou) Co., Ltd. accepting the labor service provided by the Company; Related parties such as Youlian Dockyards (Shekou) Ltd., Nanyou (Holdings), CIESCO Shenzhen, and Shenzhen Branch of China Communications Import& Export Co., Ltd. lease the house from the Company; Related parties such as Shenzhen Merchants Venture Co., Ltd., China Merchants Commercial Property Investment (Shenzhen) Co., Ltd. and CMGWT provide the rental service for the Company.
Based on the above, no situation that transaction amount exceeds0.5% of audited net asset of the
Company during the last period occurs to single related party. Combination and listing are
China Merchants Port Group Co., Ltd. Annual Report 2018 conducted here due to small amount and large quantity. )
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests In 2018, CMPort Holdings (00144.HK) made the related-party transaction on equity investment with CMGD with actual amount of RMB3.346 billion.
For details about the related-party transaction on theCompany’s capital increase in CMPort (Zhoushan) RoRo Logistics Co., Ltd., please refer to 2. Major Equity Investments Made in the Reporting Period in V Investment Made in Part IV Operating Performance Discussion and Analysis. 3. Related Transactions Regarding Joint Investments in Third Parties
Unit:RMB’0,000
|||||||||
|-|-|-|-|-|-|-|-|
|||||Registere||||
||Related||||Total|Net|Net|
|||||d capital||||
|Joint investors|relation|investee|Principal activities of investee||assets of|assets of|profit of|
|||||of||||
||ship||||investee|investee|investee|
|||||investee||||
|China Merchants||||||||
|Group (H.K.)||||||||
|Limited, Jumbo||||||||
|Pacific Holdings||||||||
|||China||||||
|Limited, China||||||||
|||Merchan|Land development, operation of|||||
|Merchants|The|||||||
|||ts|parks and properties, construction|||||
|Expressway|same|||||||
|||Hainan|and investment of municipal|||||
|Network &|ultimat|||||||
|||Develop|infrastructure, water and power|350,000|350,000|350,000|-191|
|Technology|e actual|||||||
|||ment &|supply for parks, urban renewal,|||||
|Holdings Co., Ltd.,|control|||||||
|||Investm|investment and management of|||||
|China Merchants|ler|||||||
|||ent Co.,|projects, etc.|||||
|Industrial||||||||
|||Ltd.||||||
|Investment Co.,||||||||
|Ltd. and Sinotrans||||||||
|(HK) Logistics||||||||
|Limited||||||||
|Progress of major programs||||||||
|in progress of investee (if||N/A||||||
|any)||||||||

4. Credits and Liabilities with Related Parties
√ Applicable□ Not applicable
China Merchants Port Group Co., Ltd. Annual Report 2018 Credits receivable with related parties
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Whether|||||||
||||||Increased in|||Interest in||
||||there is|||||||
|||||Beginning|the|Recovered in||the|Ending|
||||occupation|||||||
|Related|Related|Forming||balance|Reporting|the Reporting|Interest|Reporting|balance|
||||on|||||||
|party|relationship|reason||(RMB’0,00|Period|Period|rate|Period|(RMB’0,000|
||||non-operati|||||||
|||||0)|(RMB’0,00|(RMB’0,000)||(RMB’0,00|)|
||||ng capital or|||||||
||||||0)|||0)||
||||not|||||||
||Under|||||||||
|China||||||||||
||common|||||||||
|Merchants||||||||||
||control of|Bank||||||||
|Group|||Not|60,540.28|9 7 5 , 6 5 3 .9 7|9 8 6 , 7 8 1 .1 3|2 . 3 7 %|1 , 404.25|4 9 ,4 1 3 . 1 2|
||ultimate|deposits||||||||
|Finance||||||||||
||controlling|||||||||
|Co., Ltd.||||||||||
||shareholder|||||||||
||The|||||||||
||ultimate|||||||||
|China|controlling|||||||||
|||Bank|||1,615,797.3|||||
|Merchants|shareholder||Not|92,893.47||1,581,237.14|1 . 8 4 %|3 , 4 6 2 .9 5|1 2 7 , 4 5 3 . 6 5|
|||deposits|||2|||||
|Bank|has major|||||||||
||influence|||||||||
||on it|||||||||
|Effects of credits with||||||||||
|related parties on the||||||||||
|||The above credits receivable with related parties were mainly deposits in financial institutions which has||||||||
|Company’s operating||||||||||
|||no major influence on the Company’s operating results and financial conditions.||||||||
|results and financial||||||||||
|conditions||||||||||

Liabilities payable with related parties
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Increased in|Recovered in||Interest in||
||||Beginning|||||Ending|
||Related|Forming||the Reporting|the Reporting||the Reporting||
|Related party|||balance|||Interest rate||balance|
||relationship|reason||Period|Period||Period||
||||(RMB’0,000)|||||(RMB’0,000)|
|||||(RMB’0,000)|(RMB’0,000)||(RMB’0,000)||
||Under||||||||
|China|common||||||||
|Merchants|control of||||||||
|||Borrowing|189,000.00|1 0 4 , 5 0 0 .00|2 1 6 , 0 0 0 .0 0|4 . 5 4 %|5,157.41|7 7 ,5 0 0 . 00|
|Group Finance|ultimate||||||||
|Co., Ltd.|controlling||||||||
||shareholder||||||||
||The ultimate||||||||
|China|||||||||
||controlling||||||||
|Merchants||Borrowing|4,000.00|-|4 , 0 0 0 .0 0|4 .3 5 %|10.44|-|
||shareholder||||||||
|Bank|||||||||
||has major||||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
||influence on||
||it||
|Effects of liabilities with|||
|related parties on the||The above liabilities payable with related parties were mainly financial institution loans which had|
|Company’s operating results||no major influence on the Company’s operating results and financial conditions.|
|and financial conditions|||

The interest rate of the above claims and debts shall be the average interest rate.
5. Other Major Related-Party Transactions
Refer to the Notes to financial statements.
XVII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
On 13 December 2018, the Company held the 10th Extraordinary Meeting of the 9th Directors of the Board, on which the Proposal on Signing Custody Agreement of Equity of Liaoning Port Group Co., Ltd. between the Company and China Merchants (Liaoning) Port Development Co., Ltd. was reviewed and approved. The Company was allowed to sign the Custody Agreement of Equity of Liaoning Port Group Co., Ltd. with China Merchants (Liaoning) Port Development Co, Ltd., the indirect wholly-owned subsidiary of CMG, and made an appointment that China Merchants (Liaoning) Port Development entrusted all49.9% shares of Liaoning Port Group Co., Ltd. held by it as of 13 December 2018 to the Company for management.
Project which generates profit or loss reaching over10% of total profits of the Company during the Reporting Period
□ Applicable√ Not applicable
(2) Contracting
□ Applicable√ Not applicable
(3) Leases
There were no leases with a10% or greater impact on theCompany’s gross profit in the Reporting
Period.
China Merchants Port Group Co., Ltd. Annual Report 2018 2. Major guarantees
(1) Guarantees
Unit:RMB’0,000
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)|||||||||||||||||||||||||
|Obligor||||Disclosur||Line ofguarantee|||Actualoccurrencedate|||Actualguaranteeamount|||Type ofguarantee|||Term ofguarantee|||Havingexpiredor not|||Guarantee forarelatedpartyor not||
|||||e date of||||||||||||||||||||||
|||||the||||||||||||||||||||||
|||||guarantee||||||||||||||||||||||
|||||line||||||||||||||||||||||
|||||announce||||||||||||||||||||||
|||||ment||||||||||||||||||||||
|CMA CGM SA|||N/A||||||11 June 2013|||||||G e n e r a l|||A b o u t 6||No|||Not||
||||||||2,498.21||||||1,224.12|||guarantee|||years|||||||
|CMA CGM SA|||N/A||||||11 June 2013|||||||G e n e r a l|||A b o u t 2 0||No|||Not||
||||||||8,219.58||||||8,219.58|||guarantee|||years|||||||
|PORT DEDJIBOUTI S.A.,|||N/A||||||14 June 2016|||2,419.28|||G e n er a lguarantee|||A b o u t 3years|||No|||Yes||
||||||||34,316.0|||||||||||||||||||
||||||||0|||||||||||||||||||
||Total approved line for such|||||-|||||||Total actual amount of|||||-||||||||
||guarantees in the Reporting||||||||||||such guarantees in the|||||||||||||
||Period (A1)||||||||||||Reporting Period (A2)|||||||||||||
|Total approved line for suchguarantees at the end of theReporting Period (A3)||||||45,033.79|||||||Total actual balance of|||||11,862.98||||||||
||||||||||||||such guarantees at the|||||||||||||
||||||||||||||end of the Reporting|||||||||||||
||||||||||||||Period (A4)|||||||||||||
||Guarantee between the company to its subsidiaries|||||||||||||||||||||||||
|Obligor||Disclosure|||Line ofguarantee|||Actualoccurrencedate|||Actualguaranteeamount|||Type ofguarantee|||Term ofguarantee|||Havingexpired ornot|||Guaranteefor arelatedparty or not|||
|||date of the||||||||||||||||||||||||
|||guarantee||||||||||||||||||||||||
|||line||||||||||||||||||||||||
|||announcem||||||||||||||||||||||||
|||ent||||||||||||||||||||||||
||Total approved line for such|||||0|||||||Total actual amount of|||||0||||||||
||guarantees in the Reporting||||||||||||such guarantees in the|||||||||||||
||Period (B1)||||||||||||Reporting Period (B2)|||||||||||||
|Total approved line for suchguarantees at the end of theReporting Period (3)||||||0|||||||Total actual balance of|||||0||||||||
||||||||||||||such guarantees at the|||||||||||||
||||||||||||||end of the Reporting|||||||||||||
||||||||||||||Period (B4)|||||||||||||
||Guarantees provided between subsidiaries|||||||||||||||||||||||||
|Obligor||||Disclosur||Line ofguarantee||||Actual|||Actual||Type ofguarantee|||Term ofguarantee||||Having|||Guaran|
|||||e date of||||||occurrence|||guarantee|||||||||expired|||tee for|
|||||the||||||date|||amount|||||||||or not|||a|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||guarantee|||||||||||||relatedpartyor not||
|||line|||||||||||||||
|||announce|||||||||||||||
|||ment|||||||||||||||
|China Merchants|N/A||10,000.00||N/A||-||Generalguarantee||N/A||No||No||
|International|||||||||||||||||
|Terminal (Qingdao)|||||||||||||||||
|Co., Ltd.|||||||||||||||||
|Shenzhen Jinyu|N/A||80,000.00||12 January2017||50,000.00||Joint-liability||About 10years||No||No||
|Rongtai Investment|||||||||||||||||
|Development Co.,|||||||||||||||||
|Ltd.|||||||||||||||||
|Shenzhen Jinyu|N/A||50,000.00||25 June 2014||37,800.00||Joint-liability||About 5years||No||No||
|Rongtai Investment|||||||||||||||||
|Development Co.,|||||||||||||||||
|Ltd.|||||||||||||||||
|China Merchants|N/A||2,500.00||30 June 2016||2,500.00||Joint-liability||About 10years||No||No||
|International|||||||||||||||||
|(China) Investment|||||||||||||||||
|Co., Ltd.|||||||||||||||||
|China Merchants|N/A||343,160.00||4 May 2012||343,160.00||Generalguarantee||About 10years||No||No||
|Finance Company|||||||||||||||||
|Limited|||||||||||||||||
|China Merchants|N/A||343,160.00||3 August 2015||343,160.00||Generalguarantee||About 10years||No||Not||
|Finance Company|||||||||||||||||
|Limited|||||||||||||||||
|China Merchants|N/A||137,264.00||3 August 2015||137,264.00||Generalguarantee||About 5years||No||No||
|Finance Company|||||||||||||||||
|Limited|||||||||||||||||
|CMHI Finance|N/A|||617,688.|6 August 2018||617,688.00|||General||About 5|No||No||
|(BVI) Co., Ltd||||00||||||guarantee||years|||||
|CMHI Finance|N/A|||411,792.|6 August 2018||411,792.00|||General||About 10|No||No||
|(BVI) Co., Ltd||||00||||||guarantee||years|||||
|COLOMBO|N/A||240,143.37||16 September2012||15,456.61||Generalguarantee||About 13years||No||No||
|INTERNATIONAL|||||||||||||||||
|CONTAINER|||||||||||||||||
|TERMINALS|||||||||||||||||
|LIMITED|||||||||||||||||
|COLOMBO|N/A||10,294.80||16 September2012||10,294.80||Generalguarantee||Infinite||No||No||
|INTERNATIONAL|||||||||||||||||
|CONTAINER|||||||||||||||||
|TERMINALS|||||||||||||||||
|LIMITED|||||||||||||||||
|COLOMBO||N/A||17,158.0||16 September||17,158.00||General||Infinite||No||No|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||INTERNATIONAL||0|2012|||guarantee||||||
||CONTAINER||||||||||||
||TERMINALS||||||||||||
||LIMITED||||||||||||
||Lome Container|N/A|7,847.30|1 June 2015|2,004.99|||General||About 9|No|No|
||Terminal Co., Ltd.|||||||guarantee||years|||
||Lome Container|N/A|7,847.30|1 June 2015|2,004.99|||General||About 9|No|No|
||Terminal Co., Ltd.|||||||guarantee||years|||
||Lome Container|N/A|7,847.30|1 June 2015|2,004.99|||General||About 9|No|No|
||Terminal Co., Ltd.|||||||guarantee||years|||
||China Merchants|N/A|320,000.00|31 July 2017|218,000.00||Joint-liability||About 5years||No|No|
||Port Development||||||||||||
||(Shenzhen) Co.,||||||||||||
||Ltd.||||||||||||
||TCP - TERMINAL|N/A|53,169.00|19 April 2018|47,437.38||Generalguarantee||About 6years||No|No|
||DE||||||||||||
||CONTElNERES||||||||||||
||DE PARANAGUA||||||||||||
||S/A.||||||||||||
||TCP - TERMINAL|N/A|75,862.77|19 Nov7 2016|75,862.77||Generalguarantee||About 6years||No|No|
||DE||||||||||||
||CONTElNERES||||||||||||
||DE PARANAGUA||||||||||||
||S/A.||||||||||||
||Total approved line for such||1,082,649.00|||Total actual amount of|||1,076,917.38||||
||guarantees in the Reporting|||||such guarantees in the|||||||
||Period (C1)|||||Reporting Period (C2)|||||||
|Total approved line for suchguarantees at the end of theReporting Period (C3)|||2,735,733.84|||Total actual balance of|||2,333,588.52||||
|||||||such guarantees at the|||||||
|||||||end of the Reporting|||||||
|||||||Period (C4)|||||||
||Total guarantee amount (total of the three kinds of guarantees above)||||||||||||
||Total guarantee line approved in||1,082,649.00|||Total actual guarantee|||1,076,917.38||||
||the Reporting Period|||||amount in the Reporting|||||||
||(A1+B1+C1)|||||Period (A2+B2+C2)|||||||
|Total approved guarantee line atthe end of the Reporting Period(A3+B3+C3)|||2,704,904.86|||Total actual guarantee|||2,345,451.50||||
|||||||balance at the end of the|||||||
|||||||Reporting Period|||||||
|||||||(A4+B4+C4)|||||||
||Total actual guarantee amount (A4+B4+C4) as % of the||||76.25%||||||||
||Company’s net assets||||||||||||
||Of which:||||||||||||
||Balance of guarantees provided for shareholders, actual||||||||||||
||controller and their related parties (D)||||||||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
||Balance of debt guarantees provided directly or indirectly for|2,202,879.11|
||obligors with an over 70% debt/asset ratio (E)||
||Amount by which the total guarantee amount exceeds 50% of|807,427.73|
||the Company’s net assets (F)||
|Total of the three amounts above (D+E+F)||3,010,306.84|
||Joint responsibilities possibly borne in the Reporting Period for|None|
||undue guarantees (if any)||
||Provision of external guarantees in breach of the prescribed|None|
||procedures (if any)||

The above-mentioned guarantees are provided before CMPort Holdings and its subsidiaries being involved into the consolidated financial statements of the Company. And CMPort Holdings has performed all procedures regarding aforesaid guarantees completely as required by HKEX.
(2) Irregularities in Provision of Guarantees
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable√ Not applicable
(2) Entrusted Loans
Overview of entrusted loans in the Reporting Period
Unit:RMB’0,000
|||||
|-|-|-|-|
|Amount|Capital resources|Undue balance|Overdue amount|
|3,430.00|Self-owned funds|3,430.00||

Particulars of cash entrusted for wealth management with single significant amount or low security, bad liquidity, and no capital preservation
□ Applicable√ Not applicable
Whether there is the case where the principal cannot be recovered at maturity or other case which may cause impairment of cash entrusted for wealth management
□ Applicable√ Not applicable
4. Other Major Contracts
□ Applicable√ Not applicable
XVIII. Social responsibilities
As a responsible enterprise, the Company leverages its own professional strengths to participate in
charitable activities such as urban renewal, targeted poverty alleviation and reconstruction
assistance to disaster-stricken areas, with an aim to safeguarding the rights and interests of its
China Merchants Port Group Co., Ltd. Annual Report 2018 employees, attaching importance to occupational health development, promoting urban and rural economic development and improvingpeople’s living standards. We also actively participate in various social organisations and political parties and strengthen our communication with the
government and the industries to make use of our well-earned influence.
1. Fulfillment of social responsibilities
The Company is always committed to take on historical missions and has a strong sense of social responsibilities. During our journey of growth and development, we never steer away from the original goal. We take the lead to address social problems, continue to seek for the matching point for mutual development with the society and explore appropriate models for conducting charitable business that meets the needs of the current generation. By leveraging our core strengths to launch professional charitable activities, support regional development and preserve fine cultures, we will incorporate social development needs into our daily operation activities and join hands with even more partners to create a harmonious society and promote social progress.
In 2018, the Company adhered to the theme of “Shaping Blue Dreams Together(共铸蓝色梦想)” for its charitable activities, striving to fulfil its corporate social responsibilities through engagement in social charitable activities, at the same time building the charity brand of its own. Large-scaled public welfare activities included “C Blue Summer Camp for Children(C Blue儿童夏令营)” and “Shaping Blue Dreams Together– C Blue Training Programme in the 21st Century(共铸蓝色梦想－21世纪海上丝绸之路优才计划)” (C Blue Training Programme).
The “C Blue Summer Camp for Children” charitable event invited the left-behind children of theport’s frontline staff to reunite with their parents in Shenzhen and participate in a summer camp. A total of 50 families of the constructors stationed in Shenzhen had joined the event. The event not only obtained positive feedback from the society, but also created a sound corporate image of the Company to contribute to the society on a continuous basis. This project represented China Merchants Group in the o theedeams Together (arrvice Project Competition of State-owned Enterprises” and was awarded the Gold Winner.
Sponsored by China Merchants Charitable Foundation and hosted by China Merchants Port, “C Blue Training Programme (CBlue优才计划)” is a corporate social responsibility project to practice the mission of “promoting social progress through commercial success” extensively in countries along the “21st Century Maritime Silk Road” by adhering to the concept of promoting value sharing worldwide under the theme of “Shaping Blue Dreams Together (C Blue)”. The purpose of this project is to train more leading talents in port and shipping industry for countries along the Silk Road and to offer high-end port and shipping industry-related training courses to various countries.
China Merchants Port Group Co., Ltd. Annual Report 2018 The success of this programme further enhanced ChinaMerchants’ influence on countries along the “Belt and Road” initiative and better explicated China MerchantsPort’s corporate goal of “We Connect the World(天涯若比邻)”, at the same time deepening the school-enterprise cooperation with Shenzhen Polytechnic. Through systematic study of theories and diversified visits and practices, trainees will be able to utilize the extensive knowledge and experience gained to promote the development of port and shipping industry and to strengthen the implementation of the “Belt and Road” initiative and thus promote the economic development of their respective countries. Environmental protection
The Company embeds environmental elements into corporate development. During the whole life cycle of projects, the Company adheres to green ecological development philosophy and practice, and continuously pursues sustainable development in economic, environmental and social aspects as a whole by leveraging innovative green development models, strengthening development and application of energy conservation technologies, optimizing green industry network and promoting green culture among its staff. Meanwhile, the Company strives to develop a green accountability chain and a green ecosystem with joint efforts of the community. With the concerted efforts of various parties, the Company is able to develop innovative solutions for sustainable environmental development and play its part in pushing forward ecocivilisation.
XIX Other Significant Events
1. Significant Events of Asset Restructuring
On 19 June 2018, the Proposal on theCompany’s Plan to Issue Shares to Specific Targets to Acquire Assets was reviewed and approved at the 5th Special Meeting of theCompany’s 9th Board of Directors of 2018.
On 28 June 2018, SASAC issued the Reply to the Issues in Respect of the Private Placement of A-Shares by Shenzhen Chiwan Wharf Holdings Limited (GZCQ[2018] No. 360). In principle, the approval was granted for theCompany’s plan to acquire the share considerations of China Merchants Port Holdings Co., Ltd. through a private placement of no more than 1,148,648,648 A-shares and to issue no more than 128,952,746 A-shares to raise supporting funds. On 26 July 2018, the Proposal on theCompany’s Plan to Issue Shares to Specific Targets to Acquire Assets was reviewed and approved at the 2nd Extraordinary General Meeting of 2018 of the Company.
The Company obtained the Notice on the Filing of Overseas Investment Projects (FGBWZB[2018] No. 690) issued by NDRC and the Certificate of Corporate Overseas Investment (JWTZZ No. N1000201800487) issued by the Ministry of Commerce respectively on 20 September 2018 and 28 September 2018.
On 30 October 2018, the transaction was approved by China Securities Regulatory Commission through the document of ZJXK[2018] No. 1750.
China Merchants Port Group Co., Ltd. Annual Report 2018 On 5 November 2018, the Company received the Reply to the Filing of Changes in Foreign-Funded Enterprises (YSWZB 201800004) issued by the Bureau of Industry and Information Technology of Shenzhen on November 2.
On 15 November 2018, 1,313,541,560 ordinary shares of China Merchants Port Holdings Company Limited were registered in the name of the Company and the procedures for the registration of ownership transfer of the underlying assets were completed.
On 25 December 2018, the procedures for the registration of the shares issued by the Company to the counterparty CMID were completed in CSDCC Shenzhen.
2. Changes in theCompany’s Stock Name and Stock Code
On 27 November 2018, the Company held the 8th Special Meeting of the 9th Board of Directors of 2018. The Proposal on Changing theCompany’s Name, Stock Name and Stock Code was reviewed and approved at the Meeting. According to the Proposal, theCompany’s stock name would change from “CHIWAN WHARF/CHIWAN WHARF-B” to “CM PORT GROUP/CM PORT GROUP B”, and its stock code would change from “000022/200022” to “001872/201872”. On 13 December 2018, the Company held the 3rd Extraordinary General Meeting of 2018, and the Proposal on Changing theCompany’s Name, Stock Name and Stock Code was reviewed and approved. In accordance with the provisions of the Rules of Shenzhen Stock Exchange for Stock Listing and relevant business processing requirements, the Company applied with Shenzhen Stock Exchange and the revised stock name and code were officially applied from 26 December 2018.
3. Description of the Events of Share Trading Suspension and Resumption
Due to the planning and demonstration of the actual controller China Merchants Group on significant events in respect of the Company, theCompany’s stock was suspended from the opening on 20 November 2017. Through the negotiation and demonstration of related parties thereafter, the Company recognized the aforementioned significant events as significant asset reorganization, with its stock transferred into significant asset reorganization and continuing to be suspended from 4 December 2017. During the stock suspension, the Company duly performed its obligations of information disclosure in accordance with relevant laws and regulations and released an announcement on the progress at least every five working days. On 9 July 2018, in accordance with regulations, the Company disclosed the Report of Shenzhen Chiwan Wharf Holdings Limited on the Issue of Shares to Acquire Assets and Raise Supporting Funds and Connected Transactions (Draft) (Revision) and related announcements. On 10 July 2018, theCompany’s stock was resumed through its application.
Due to theCompany’s application for changes in its stock name and stock code, theCompany’s stock was suspended consecutively for three trading days in total from 21 December 2018 to 25 December 2018 during the implementation of the changes. From 26 December 2018, trading in theCompany’s shares was resumed and traded in the revised stock name and code.
4. Information Disclosure Index
In the Reporting Period, the Company disclosed the following significant events on Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn:
||||
|-|-|-|
|Announcement No.|Date|Title|
|2018-001|4 January 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|2018-002|6 January 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of December 2017|
|2018-003|11 January 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-004|20 January 2018|Announcement on Resolutions of the 1st Special Meeting of the9th Board of Directors in 2018|
|2018-005|20 January 2018|Announcement on Application for Continuing the Suspension dueto the Expiration of Significant Assets Restructuring Delisting|
|2018-006|27 January 2018|Announcement on Resolutions of the 2nd Special Meeting of the9th Board of Directors in 2018|
|2018-007|27 January 2018|Announcement on the Related-party Transaction regardingForeign Investments|
|2018-008|27 January 2018|Announcement on Convening Shareholders Meeting for Approvalof Matters Related to Continuous Suspension|
|2018-009|27 January 2018|Notice on Convening the 1st Extraordinary General Meeting of2018|
|2018-010|3 February 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-011|7 February 2018|Announcement on Resolutions of the 3rd Special Meeting of the9th Board of Directors in 2018|
|2018-012|7 February 2018|Announcement on Expected Routine Related-Party Transactionsfor 2018|
|2018-013|7 February 2018|Announcement on Related-party Transaction regarding SigningSupplementary Agreement to the MEDIA PORT INVESTMENTSLIMITED Shareholder Agreement II|
|2018-014|7 February 2018|Reminder of Changes in Controlling Shareholders|
|2018-015|7 February 2018|Reminder of Convening the 1st Extraordinary General Meeting of2018|
|2018-016|8 February 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of January 2018|
|2018-017|10 February 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-018|14 February 2018|Announcement on Resolutions of the 1st Extraordinary GeneralMeeting of 2018|
|2018-019|14 February 2018|Announcement on Application for Continuing the Suspension dueto the Expiration of Significant Assets Restructuring Delisting|
|2018-020|28 February 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-021|7 March 2018|Announcement on Resolutions of the 3rd Meeting of the 9th Boardof Directors|
|2018-022|7 March 2018|Announcement on Resolutions of the 3rd Meeting of the 9thSupervisory Committee|
|2018-023|7 March 2018|Abstract of Annual Report 2017 of Shenzhen Chiwan WharfHoldings Limited|
|2018-024|7 March 2018|Announcement on Plan of Profit Distribution and DividendPayout in 2017|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|2018-025|7 March 2018|Announcement on Changes in Accounting Policy|
|2018-026|7 March 2018|Announcement on Termination of Joint Investment in HaixingOnoda Project with Related Parties|
|2018-027|7 March 2018|Notice of Convening the 2017 Annual General Meeting|
|2018-028|7 March 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-029|8 March 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of February 2018|
|2018-030|8 March 2018|Correction Notice|
|2018-031|14 March 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-032|20 March 2018|Reminder of the Progress of Changes in ControllingShareholders|
|2018-033|21 March 2018|Reminder of Convening the 2017 Annual General Meeting|
|2018-034|21 March 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-035|27 March 2018|Reminder of the Progress of Changes in Controlling Shareholders|
|2018-036|28 March 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-037|29 March 2018|Announcement on Resolutions of the 2017 Annual GeneralMeeting|
|2018-038|4 April 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-039|10 April 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of March 2018|
|2018-040|13 April 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-041|20 April 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-042|24 April 2018|Reminder of Issuance of 2018 Phase I Super-short-term FinancingBonds|
|2018-043|27 April 2018|Announcement on Resolutions of the 4th Special Meeting of the9th Board of Directors in 2018|
|2018-044|27 April 2018|The Text of the First Quarter Report 2018|
|2018-045|27 April 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-046|28 April 2018|Announcement on Issue Results of 2018 Phase I Super-short-termFinancing Bonds|
|2018-047|3 May 2018|Announcement on China Securities Regulatory Commission’sConsent for the Exemption of China Merchants GangtongDevelopment (Shenzhen) Co., Ltd. and its Acting-in-concert|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|||Parties from the Tender Offer Obligation|
|2018-048|8 May 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-049|9 May 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of April 2018|
|2018-050|15 May 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-051|15 May 2018|Announcement on Convening Investor Conference regardingSignificant Assets Restructuring|
|2018-052|17 May 2018|Announcement on the Execution of the 2017 Dividend Plan|
|2018-053|18 May 2018|Announcement on Application for Continuing the Suspension dueto the Expiration of Significant Assets Restructuring Delisting|
|2018-054|19 May 2018|Announcement on Particulars of Investors Conference Convenedregarding Significant Assets Restructuring|
|2018-055|22 May 2018|Announcement on the Due Payment of 2017 Phase ISuper-short-term Financing Bonds|
|2018-056|25 May 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-057|1 June 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-058|8 June 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-059|9 June 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of May 2018|
|2018-060|12 June 2018|Announcement on Completion of Share Transfer and Changes inControlling Shareholders|
|2018-061|15 June 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|
|2018-062|21 June 2018|Announcement on Resolutions of the 5th Special Meeting of the9th Board of Directors in 2018|
|2018-063|21 June 2018|Announcement on Resolutions of the 2nd Special Meeting of the9th Supervisory Committee in 2018|
|2018-064|21 June 2018|Announcement on Related-party Transaction regarding SigningSupplementary Agreement to the Financial Service Agreementwith China Merchants Group Finance Co., Ltd.|
|2018-065|21 June 2018|Announcement on Disclosure of Related-party Transaction Reporton Assets Purchase via Share Offering and Matching FundRaising and on Temporary not Resumption|
|2018-066|21 June 2018|Reminder of General Risk of Significant Assets Restructuring|
|2018-067|28 June 2018|Announcement on the Progress of Share Trading Suspension ofSignificant Assets Restructuring|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|2018-068|4 July 2018|Announcement on Approval of Relevant Issues of SignificantAssets Restructuring by State-owned Assets Supervision andAdministration Commission|
|2018-069|5 July 2018|Announcement on the Delay in Reply to the Enquiry Letter ofRestructuring of Shenzhen Stock Exchange and Continuous ShareTrading Suspension|
|2018-070|7 July 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of June 2018|
|2018-071|10 July 2018|Announcement on Resolutions of the 6th Special Meeting of the9th Board of Directors in 2018|
|2018-072|10 July 2018|Announcement on Resolutions of the 3rd Special Meeting of the9th Supervisory Committee in 2018|
|2018-073|10 July 2018|Announcement on Signing Termination of Agreement to theFinancial Service Agreement with China Development FinanceCompany Ltd.|
|2018-074|10 July 2018|Notice on Convening the 2nd Extraordinary General Meeting of2018|
|2018-075|10 July 2018|Announcement on the Share Trading Resumption of SignificantAssets Restructuring|
|2018-076|19 July 2018|Reminder of Convening the 2nd Extraordinary General Meeting of2018|
|2018-077|24 July 2018|Announcement on Execution of 2017 Equities Distribution fromthe Company’s Significant Assets Restructuring of Intending toPurchase the Target Company China Merchants Port HoldingsCompany Limited|
|2018-078|27 July 2018|Announcement on Resolutions of the 2nd Extraordinary GeneralMeeting of 2018|
|2018-079|9 August 2018|Announcement on the Assets Purchase Offering and MatchingFund Raising of Shenzhen Chiwan Wharf Holdings Limited andthe Revision of Relevant Documents of Related-PartyTransactions|
|2018-080|10 August 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of July 2018|
|2018-081|11 August 2018|Announcement on Receiving the Acceptance Form of Applicationfor Administrative license of China Securities RegulatoryCommission|
|2018-082|31 August 2018|Announcement on Resolutions of the 4th Meeting of the 9th Boardof Directors|
|2018-083|31 August 2018|Abstract of Interim Report 2018|
|2018-084|31 August 2018|Announcement on the Progress of Foreign Investment andRelated-party Transactions|
|2018-085|6 September 2018|Announcement on Receiving a Feedback Notification of ProjectReview for Administrative license of China Securities Regulatory|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|||Commission|
|2018-086|11 September 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of August 2018|
|2018-087|14 September 2018|Announcement on the Reply to the Feedback Notification ofProject Review for Administrative license of China SecuritiesRegulatory Commission|
|2018-088|28 September 2018|Announcement on Share Trading Suspension about theExamination of the Company’sAssets Purchase via Share Offering and Matching Fund Raisingand the Related-party Transactions by Audit Committee of ChinaSecurities Regulatory Commission for Listed Companies’acquisition and Reorganization|
|2018-089|10 October 2018|Announcement on Conditional Approval of theAssets Purchase via Share Offering and Matching Fund Raisingthe Related-party Transactions by Audit Committee of ChinaSecurities Regulatory Commission for Listed Companies’acquisition and Reorganization and the Share Trading Resumptionof the Company|
|2018-090|16 October 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of September 2018|
|2018-091|18 October 2018|Announcement on Receiving the Notification of ForeignInvestment Project Filing from National Development andReform Commission and Certificate for Foreign Investment ofEnterprises from Ministry of Commerce regarding theAssets Purchase via Share Offering and Matching Fund Raisingand Related-party Transactions|
|2018-092|31 October 2018|Announcement on Resolutions of the 7th Special Meeting of the9th Board of Directors in 2018|
|2018-093|31 October 2018|The Text of the Third Quarter Report 2018|
|2018-094|1 November 2018|Announcement on Receiving the Approval of China SecuritiesRegulatory Commission regarding theAssets Purchase via Share Offering and Matching Fund Raisingand Related-party Transactions|
|2018-095|1 November 2018|Announcement on Notice for the Revision of the Report ofAssets Purchase via Share Offering and Matching Fund Raisingand Related-party Transactions|
|2018-096|6 November 2018|Announcement on Receiving the Reply to the Filing of Changesin Foreign-invested Enterprises from Shenzhen Commission ofEconomy and Information Technology regarding theAssets Purchase via Share Offering and Matching Fund Raisingand Related-party Transactions|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|2018-097|9 November 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of October 2018|
|2018-098|20 November 2018|Announcement on Execution of 2018 Interim EquitiesDistribution from the Company’s Significant Assets Restructuringof Intending to Purchase the Target Company China MerchantsPort Holdings Company Limited|
|2018-099|21 November 2018|Announcement on Resignation of Directors|
|2018-100|21 November 2018|Announcement on Resignation of Supervisors|
|2018-101|22 November 2018|Announcement on Completion of the Transfer of UnderlyingAssets regarding the Assets Purchase via Share Offeringand Matching Fund Raising and Related-party Transactions|
|2018-102|28 November 2018|Announcement on Resolutions of the 8th Special Meeting of the9th Board of Directors in 2018|
|2018-103|28 November 2018|Announcement on Resolutions of the 5th Special Meeting of the9th Supervisory Committee in 2018|
|2018-104|28 November 2018|Announcement on Accounting Estimate Change of Fixed Assets|
|2018-105|28 November 2018|Announcement on Related-party Transaction regarding SigningSupplementary Agreement to the Financial Service Agreementwith China Merchants Group Finance Co., Ltd.|
|2018-106|28 November 2018|Notice on Convening the 3rd Extraordinary General Meeting of2018|
|2018-107|1 December 2018|Announcement on Resolutions of the 9th Special Meeting of the9th Board of Directors in 2018|
|2018-108|1 December 2018|Announcement on Related-party Transaction regarding JointlyInvesting and Establishing China Merchants Hainan Developmentand Investment Co., Ltd with Related Parties|
|2018-109|3 December 2018|Announcement on Adding Temporary Proposal in the 3rdExtraordinary General Meeting of 2018 and SupplementaryNotice on Convening the 3rd Extraordinary General Meeting of2018|
|2018-110|6 December 2018|Reminder of Convening the 3rd Extraordinary General Meeting of2018|
|2018-111|8 December 2018|Announcement on Resignation of Chairman of the Board|
|2018-112|8 December 2018|Announcement on Resignation of Senior Executives|
|2018-113|8 December 2018|Announcement on Voluntary Information Disclosure of BusinessVolume Data of November 2018|
|2018-114|14 December 2018|Announcement on Resolutions of the 3rd Extraordinary GeneralMeeting of 2018|
|2018-115|14 December 2018|Announcement on Resolutions of the 10th Special Meeting of the9th Board of Directors in 2018|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|2018-116|14 December 2018|Announcement on Resolutions of the 6th Special Meeting of the9th Supervisory Committee in 2018|
|2018-117|14 December 2018|Announcement on Signing Trusteeship of the Stock RightAgreement with China Merchants (Liaoning) Port DevelopmentCo., Ltd and Related-party Transactions|
|2018-118|14 December 2018|Reminder of Intending to Change the Company’s Name, StockName and Stock Code and Share Trading Suspension of theCompany|
|2018-119|15 December 2018|Announcement on Completion of Changes in Industrial andCommercial Registration|
|2018-120|21 December 2018|Reminder of Share Trading Suspension of the Company andIntending to Change Stock Name and Stock Code|
|2018-121|24 December 2018|Announcement on Changes in Shareholdings of Directors,Supervisors and Senior Executives of the China Merchants PortGroup Co., Ltd.|
|2018-122|24 December 2018|Announcement on Commitment Made by Related Parties ofthe Assets Purchase via Share Offering|
|2018-123|25 December 2018|Announcement on Signing the Qianhai Land Service Agreementby the Wholly-owned Subordinate Company of Majority-ownedSubsidiary Namely China Merchants Port Holdings CompanyLimited|
|2018-124|26 December 2018|Announcement on Share Trading Suspension of the Company andChanges in Stock Name and Stock Code|

XX Significant Events of Subsidiaries
On 25 February 2018, China Merchants Port Holdings Company Limited had purchased90% stock of TCP.
On 20 March 2018, Board of Directors of China Merchants Port Holdings Company Limited announced that it appointed Mr. Fu Gangfeng as the Executive Director and Chairman of the Board of China Merchants Port Holdings Company Limited.
14 June 2018, China Merchants Port Holdings Company Limited had purchased all50% stock of Port of Newcastle of Australia from the shareholder of CMU. Thus the global port layout of China Merchants Port Holdings Company Limited had covered six continents.
6 August 2018, China Merchants Port Holdings Company Limited had issued a total amount of RMB1.5 billon guaranteed notes with fixed interests, and it was traded on the Stock Exchange of Hong Kong Ltd.
On 24 December 2018, China Merchants Port Holdings Company Limited made land service
agreement with Shenzhen Urban Planning and Land Resources Committee, Shenzhen Qianhai
China Merchants Port Group Co., Ltd. Annual Report 2018 Shengang Modern Service Industry Cooperation Zone Authority, CMG, Shenzhen Qianhai Square Park Development Co., Ltd, China Merchants Shekou Industrial Zone Holdings Co., Ltd, CMSK, several subsidiary companies of China Merchants Shekou, and Shenzhen China Merchants Qianhai Chidi Industry Co., Ltd to further manage the various land equities held by CMG in Qianhai, Shenzhen, China at present.
China Merchants Port Group Co., Ltd. Annual Report 2018 Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before||Increase/decrease in the Reporting Period (+/-)|||||After||
|||||Shar|Shares|||||
|||||es as|as|||||
|||||divi|dividen|||||
|||||dend|d|||||
|||Percentag|||||||Percentag|
||Shares||New issues|conv|convert|Other|Subtotal|Shares||
|||e (%)|||||||e (%)|
|||||erted|ed from|||||
|||||from|capital|||||
|||||profi|reserve|||||
|||||t|s|||||
|I. Restricted shares|160,106|0.02%|1,148,648,648|0|0|1,148,700,698|1,148,700,698|1,148,860,804|64.06%|
|1. Shares held by state|0|0.00%|0|0|0|0|0|0|0.00%|
|2. Shares held by|0|0.00%|0|0|0|0|0|0|0.00%|
|state-owned legal person||||||||||
|3. Shares held by other|160,106|0.02%|0|0|0|52,050|52,050|212,156|0.01%|
|domestic investors||||||||||
|Including: Shares held by|0|0.00%|0|0|0|0|0|0|0.00%|
|domestic legal person||||||||||
|Shares held||||||||||
|by domestic natural|160,106|0.02%|0|0|0|52,050|52,050|212,156|0.01%|
|person||||||||||
|4. Shares held by foreign|0|0.00%|1,148,648,648|0|0|0|1,148,648,648|1,148,648,648|64.05%|
|investors||||||||||
|Including: Shares held by|0|0.00%|1,148,648,648|0|0|0|1,148,648,648|1,148,648,648|64.05%|
|foreign legal person||||||||||
|Shares held|0|0.00%|0|0|0|0|0|0|0.00%|
|by foreign natural person||||||||||
|II. Unrestricted shares|644,603,624|99.98%|0|0|0|-52,050|-52,050|644,551,574|35.94%|
||464,859,300|72.10%||0|0|-3,976|-3,976|464,855,324|25.92%|
|1. RMB ordinary shares||||||||||
|2. Domestically listed|179,744,324|27.88%|0|0|0|-48,074|-48,074|179,696,250|10.02%|
|foreign shares||||||||||
|3. Overseas listed foreign|0|0.00%|0|0|0|0|0|0|0.00%|
|shares||||||||||
||0|0.00%|0|0|0|0|0|0|0.00%|
|4. Other||||||||||
||||1,148,648,648|||||||
|III. Total shares|644,763,730|100.00%||0|0|0|1,148,648,648|1,793,412,378|100.00%|

 Reasons for share changes:
1. Share issuance of the Company; 2. Changes in directors, supervisors, and senior executives of the Company
Approval of share changes:
On 19 June and 9 July 2018, the Company held the 5th and 6th Special Meetings of the 9th Board of
Directors of 2018 respectively. The proposals in respect of the transaction were reviewed and
China Merchants Port Group Co., Ltd. Annual Report 2018 approved at the meetings, including the Proposal on theCompany’s Eligibility for the Issue of Shares to Acquire Assets and Raise Supporting Funds, the Proposal on theCompany’s Plan to Issue Shares to Specific Targets to Acquire Assets, the Proposal on theCompany’s Entering into the Agreement on the Concerted Action of China Merchants Port Holdings Co., Ltd. with China Merchants Group (HK) Co., Ltd., the Proposal on theCompany’s Raising of Supporting Funds, the Proposal on the Report of Shenzhen Chiwan Wharf Holdings Limited on the Issue of Shares to Acquire Assets and Raise Supporting Funds and Connected Transactions (Draft) and the Abstract, the Proposal on the Entering with Specific Targets into the Agreement on the Issue of Shares to Acquire Assets and the Agreement on the Impairment Compensation Effective with Conditions, the Proposal on the Entering with Specific Targets into the Supplementary Agreement to the Agreement on the Impairment Compensation of the Agreement on the Issue of Shares to Acquire Assets Effective with Conditions, and the Proposal on the Application for the Approval of theCompany’s Annual General Meeting for the Exemption of Increased Shareholding of China Merchants Investment Development Company Limited by Offer.
On 28 June 2018, SASAC issued the Reply to the Issues in Respect of the Private Placement of A-Shares by Shenzhen Chiwan Wharf Holdings Limited (GZCQ[2018] No. 360). In principle, the approval was granted for the private placement of no more than 1,148,648,648 A-shares by China Merchants Port to acquire the share considerations of China Merchants Port Holdings Co., Ltd. and the issue of no more than 128,952,746 A-shares to raise supporting funds.
On 26 July 2018, the issues in respect of the transaction were reviewed and approved at the 2nd Extraordinary General Meeting of 2018, and non-related shareholders reviewed and approved the Proposal on the Application for the Approval of theCompany’s Annual General Meeting for the Exemption of Increased Shareholding of China Merchants Investment Development Company Limited by Offer and agreed to the exemption of increasing the holding of shares of China Merchants Port by CMID through offer.
On 20 September 2018, pursuant to the Filing of Overseas Investment Projects (FGBWZB[2018] No. 690) issued by NDRC, NDRC agreed to file the project of acquisition of partial equity of China Merchants Port Holdings by China Merchants Port.
On 28 September 2018, pursuant to the Certificate of Corporate Overseas Investment (JWTZZ No.N1000201800487) issued by the Ministry of Commerce, the filing with the Ministry of Commerce in respect of the overseas investment involved in the acquisition was completed.
On 30 October 2018, CSRC issued the Reply on the Approval of the Issue of Shares by Shenzhen Chiwan Wharf Holdings Limited to China Merchants Investment Development Company Limited for Asset Acquisition and Raising of Supporting Funds (ZJXK[2018] No. 1750) to approval the
China Merchants Port Group Co., Ltd. Annual Report 2018 transaction.
On 2 November 2018, pursuant to the Reply to the Filing of Changes in Foreign-Funded Enterprises (Number: YSWZB 201800004) issued by the Bureau of Industry and Information Technology of Shenzhen, China Merchants Port completed the procedures for the filing of changes in foreign-funded enterprises in respect of the strategic investment in listed companies by foreign investors involved in the acquisition.
Transfer of share ownership:
On 25 December 2018, the registration of the 1,148,648,648 A-shares issued by China Merchants Port Holdings Company Limited to CMID with China Securities Depository and Clearing Co., Ltd. Shenzhen Branch. On 26 December 2018, some of the shares were listed for trading on Shenzhen Stock Exchange.
Progress on any share repurchases:
□ Applicable√ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable√ Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to theCompany’s ordinary shareholders and other financial indicators of the prior year and the prior accounting period, respectively:
At the beginning of the Reporting Period, the Company had 645 million capital shares, which increased to 1,793 million upon the additional issue. Pursuant to the Information Disclosure and Presentation Rules for Companies Making Public Offering No. 9 - Calculation and Disclosure of Return on Net Assets and Earnings per Share, the Company used the 1,793 capital shares as the base in the calculation of the earnings per share and net asset value per share for 2016 and 2017. Therefore, the changes in the capital shares from theCompany’s reorganization do not have any effect on the financial indicators including earnings per share and net asset value per share presented in the comparative financial statements.
The Company completed the asset acquisition through issue of shares on 26 December 2018, from when the Company included China Merchants Port Holdings Company Limited into the consolidated financial statements. Based on the net profits attributable to the listed company in the latest restated consolidated financial statements for 2017 and the latest total capital shares, the earnings per share was RMB1.32. The diluted earnings per share was RMB1.32, and the net asset value per share attributable to ordinary shareholders of the Company was RMB15.88.
To provide investors with comparable financial information, the Company disclosed the financial
China Merchants Port Group Co., Ltd. Annual Report 2018 indicators before and after the restatement for the recent two years, including basic earnings per share, diluted earnings per share and net assets attributable to the common shareholders of the Company. The details can be found in “VI. Key Financial Information” under “Section II Corporate Information and Key Financial Information”.
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable√ Not applicable
2. Changes in Restricted Shares
Unit: share
||||||||
|-|-|-|-|-|-|-|
||Number of||||||
||restricted|Number of|||||
||||Number of|Number of|||
|Name of|shares at|released|||Reason for|Date of restriction|
||||increased|restricted shares|||
|shareholders|the|restricted|||restriction|release|
||||restricted shares|at the period-end|||
||period-beg|shares|||||
||in||||||
||||||During the||
||||||Reporting Period,||
||||||the Company||
||||||issued||
||||||1,148,648,648 A||
||||||shares to CMID||
|China|||||||
||||||who made the||
|Merchants|||||||
||||||commitment to||
|Investment|||||||
||0|0|1,148,648,648|1,148,648,648|restrict the shares|25 June 2022|
|Development|||||||
||||||when the new||
|Company|||||||
||||||shares went public.||
|Limited|||||||
||||||For details, see III.||
||||||Fulfillment of||
||||||commitments in||
||||||Part V Significant||
||||||Events of this||
||||||report||
|Zhang Jianguo|55,712|0|18,570|74,282||12 May 2019|
|Yuan Yuhui|10,530|0|0|10,530||-|
||||||According to the||
|Ni Keqin|21,909|0|0|21,909|Articles of|-|
|Zhao|||||Association and||
||48,716|0|16,238|64,954||5 May 2019|
||||||the relevant laws||
|Chaoxiong|||||||
||||||and regulations||
|Wang Yongli|3,739|0|1,246|4,985||12 May 2019|
|Yao Shenglan|0|0|6,500|26,000||5 May 2019|

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||
|-|-|-|-|-|-|
|Zheng||||||
||0|0|9,496|9,496|-|
|Shaoping||||||
|Total|160,106|0|1,148,700,698|1,148,860,804|--|

 II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
√ Applicable□ Not applicable
||||||||
|-|-|-|-|-|-|-|
|Name of stock|||||||
|||Issuing price|||Approved|Expiry date|
|and its|||||||
||Issuing date|(or interest|Numbers|Listing date|numbers for|of the|
|derivative|||||||
|||rate)|||trading|trading|
|securities|||||||
|Stock|||||||
|Issuing A|25 December|RMB21.46||26 December|||
||||1,148,648,648||1,148,648,648|-|
|shares|2018|per share||2018|||

Explanation for securities (exclusive of preferred shares) issued in the Reporting Period
On 25 December 2018, the 1,148,648,648 A shares issued by the Company was registered on Shenzhen Branch of China Securities Depository and Clearing Corporation Limited. Those shares was traded on Shenzhen Stock Exchange on 26 December 2018
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
The Company acquired 1,313,541,560 ordinary shares of China Merchants Port Holdings Company Limited (approximately39.45% of the total ordinary shares issued by China Merchants Port Holdings Company Limited) held by CMID at a transaction amount of RMB24,650,000,000. Based on the share price of RMB21.46/share, the number of A-shares issued by the Company to CMID was 1,148,648,648. The registration of those shares was completed in China Securities Depository and Clearing Co., Ltd. Shenzhen Branch on 25 December 2018 and listed on 26 December 2018. The details can be found on the Report of China Merchants Port Group Co., Ltd. on the Issue of Shares to Acquire Assets and Raise Supporting Funds and the Implementation of Connected Transactions and the Listing of New Shares published on 24 December 2018.
Upon the completion of the transaction, the Company included China Merchants Port Holdings Company Limited into the consolidation scope, which resulted in an evident increase in the asset scale in the consolidated financial statements without changing theCompany’s asset-liabilities structure.
3. Existing Staff-Held Shares
□ Applicable√ Not applicable
China Merchants Port Group Co., Ltd. Annual Report 2018 III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Number of|||
|||||||||||||preferred|||
||||Number of||||||||||||
||35,642 (including|||||35,972 (including||Number of preferred||||shareholders|||
|Number of|||ordinary||||||||||||
||24,924|||||25,184||shareholders with||||with resumed|||
|ordinary|||shareholders at the||||||||||||
||A-shareholders,|||||A-shareholders, and||resumed voting||0||voting rights at||0|
|shareholders at|||month-end prior to||||||||||||
||and 10,718|||||10,788||rights at the||||the month-end|||
|the period-end|||the disclosure of||||||||||||
||B-shareholders)|||||B-shareholders)||period-end (if any)||||prior to the|||
||||this Report||||||||||||
|||||||||||||disclosure of this|||
|||||||||||||Report (if any)|||
|5% or greater shareholders or top 10 shareholders|||||||||||||||
|||||Sharehold|||||||||||
||||||||Increase/decrease||||||||
|||Nature of||ing|Total shares held||||Restricted||Unrestricted||||
|Name of shareholder|||||||in the Reporting||||||Pledged or||
|||shareholder||percentag|at the period-end||||shares held||shares held||frozen shares||
||||||||Period||||||||
|||||e|||||||||||
|CHINAMERCHANTSINVESTMENTDEVELOPMENTCOMPANYLIMITED||Foreign legalperson||64.05%|1,148,648,648||1,148,648,648||1,148,648,648||0||||
||||||||||||||0||
|CHINAMERCHANTSGANGTONGDEVELOPMENT(SHENZHEN) CO.,LTD.||Domesticgeneral legalperson||20.68%|370,878,000||370,878,000||0||370,878,000||||
||||||||||||||0||
|BROADFORDGLOBAL LIMITED||Foreign legalperson||3.08%|55,314,208||55,314,208||0||55,314,208||||
||||||||||||||0||
|CMBLSA RE FTIFTEMPLETONASIAN GRW FD GTI5496||Foreign legalperson||2.42%|43,445,204||-4,469,750||0||43,445,204||||
||||||||||||||Unknown||
|NORGES BANK||Foreign legalperson||0.16%|2,802,863||0||0||2,802,863||||
||||||||||||||Unknown||
|CHINAMERCHANTSSECURITIES (HK)CO., LTD.||State-ownedlegal person||0.15%|2,641,020||514,998||0||2,641,020||||
||||||||||||||Unknown||
|MAI SHUQING||Domesticnatural person||0.13%|2,361,047||122,700||0||2,361,047||||
||||||||||||||Unknown||
|VANGUARDEMERGINGMARKETS STOCKINDEX FUND||Foreign legalperson||0.12%|2,229,700||-387,818||0||2,229,700||||
||||||||||||||Unknown||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|CHINACONSTRUCTIONBANK—INVESCOGREAT WALLQUANTITATIVEAND SELECTEDSTOCKSECURITIESINVESTMENTFUNDS|Fund, wealthmanagementinstrument, etc.|0.08%|1,495,654||735,993|0|1,495,654|||
||||||||||Unknown|
|CANADA POSTCORPORATIONREGISTEREDPENSION PLAN|Foreign legalperson|0.08%|1,446,906||-132,190|0|1,446,906|||
||||||||||Unknown|
|Strategic investors or general legal||||||||||
|person becoming top-ten shareholders||N/A||||||||
|due to placing of new shares (if any)||||||||||
|||China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a wholly-owned subsidiary of||||||||
|Related or acting-in-concert parties||Broadford Global Limited, and Broadford Global Limited is the controlling shareholder of China||||||||
|among the shareholders above||Merchants Investment Development Company Limited. The Company does not know whether the||||||||
|||other unrestricted shareholders are related parties or not.||||||||
|Top 10 unrestricted shareholders||||||||||
|||||||||Shares by type||
|Name of shareholder||||Unrestricted shares held at the period-end||||||
|||||||||Type|Shares|
|CHINA MERCHANTS GANGTONG DEVELOPMENT(SHENZHEN) CO., LTD.||||370,878,000||||A share|370,878,000|
|BROADFORD GLOBAL LIMITED||||55,314,208||||B share|55,314,208|
|CMBLSA RE FTIF TEMPLETON ASIAN GRW FD GTI5496||||43,445,204||||B share|43,445,204|
|NORGES BANK||||2,802,863||||B share|2,802,863|
|CHINA MERCHANTS SECURITIES (HK) CO., LTD.||||2,641,020||||B share|2,641,020|
|MAI SHUQING||||2,361,047||||A share|2,361,047|
|VANGUARD EMERGING MARKETS STOCK INDEXFUND||||2,229,700||||B share||
||||||||||2,229,700|
|CHINA CONSTRUCTION BANK—INVESCO GREATWALL QUANTITATIVE AND SELECTED STOCKSECURITIES INVESTMENT FUNDS||||1,495,654||||||
|||||||||A share|1,495,654|
|CANADA POST CORPORATION REGISTEREDPENSION PLAN||||1,446,906||||B share||
||||||||||1,446,906|
|CHEN ZEHONG||||1,240,000||||A share|1,240,000|
|Related or acting-in-concert parties among the top ten||||China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a||||||
|unrestricted public shareholders and between the top ten||||wholly-owned subsidiary of Broadford Global Limited. The Company does||||||
|unrestricted public shareholders and the top ten shareholders||||not know whether the other unrestricted shareholders are related parties or||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||
|-|-|
||not.|
|Top ten ordinary shareholders conducting securities margin||
||N/A|
|trading (if any)||

The top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company did not conduct any promissory repo during the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a central state-owned legal person
Type of the controlling shareholder: legal person
||||||
|-|-|-|-|-|
||Legal||||
|Name of controlling|representative|Date of|||
||||Unified social credit code|Principal activity|
|shareholder|/person in|establishment|||
||charge||||
|||||Port services,|
|||||bonded logistic and|
|BROADFORD GLOBAL|||||
||Deng|||cold chain services,|
|||27 November 2017|68550019-000-11-17-2||
|LIMITED|Weidong|||property|
|||||development and|
|||||investment|
|Equities held by the|||||
|controlling shareholder in|||||
|other listed companies at|||||
|home or overseas by|N/A||||
|holding shares or|||||
|participating in shares|||||
|during the Reporting Period|||||

For details about changes in all previous controlling shareholders, see IV. Changes in the registered information in Part II Corporate Information and Key Financial Information of this report
3. Actual Controller
Nature of the actual controller: Central institution for state-owned assets management
Type of the actual controller: legal person
||||||
|-|-|-|-|-|
||Legal||||
|Name of actual|representative|Date of|Unified social||
|||||Principal activity|
|controller|/person in|establishment|credit code||
||charge||||
|||||Lease and agency of water/land|
|||||passenger-cargo transportation, water/land|
|||||conveyance and facilities; investment and|
|China Merchants||||management of port and storage business;|
||Li Jianhong|14 October 1986|10000522-0||
|Group||||salvage, refloatation and tugboat; industrial|
|||||production; construction, repairing,|
|||||checking and marketing of shipping|
|||||offshore petroleum drilling equipment;|

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||
|-|-|-|-|
||||repairing and checking of drilling platform|
||||and drilling container; overall contracting of|
||||water/land construction projects and the|
||||related offshore petroleum development|
||||projects, and their construction organization|
||||and logistic services; procurement, supply|
||||and sale of water/land communication and|
||||transportation equipment; export and import|
||||business of transportation; investment and|
||||management of finance, insurance, trust,|
||||securities, futures business; investment and|
||||management of tourism, hotels, catering|
||||services and relevant service; real estate|
||||development, management and consultancy|
||||of property; investment and management of|
||||petroleum and chemical industry;|
||||investment and operation of infrastructure of|
||||communication; overseas assets|
||||management. Development and|
||||management of Shenzhen Shekou Industrial|
||||Zone and Fujian Zhangzhou Development|
||||Zone.|
||China Merchants Group holds:|||
||62.09% shares of China Merchants Port Holdings Company Limited;|||
||27.86% shares of China Merchants Bank Co., Ltd;|||
||54.28% shares of China Merchants Energy Shipping Co., Ltd;|||
||72.36% shares of China Merchants Shekou Industrial Zone Holdings Co., Ltd.;|||
||74.35% shares of China Merchants Land Limited;|||
||26.77% shares of Shanghai International Port (Group) Co., Ltd;|||
||24.58% shares of China International Marine Containers (Group) Ltd;|||
||87.81% shares of China Merchants Port Group Co., Ltd;|||
||3.09% shares of Ningbo Zhoushan Port Company Limited;|||
||2.54% shares of Qingdao Port International Co., Ltd;|||
||44.09% shares of China Merchants Securities Co. Ltd.;|||
||27.59% shares of China Merchants China Direct Investments Limited;|||
|Equities of the||||
||68.72% shares of China Merchants Expressway Network&Technology Holdings Co., Ltd;|||
|other listed||||
||16.52% shares of Heilongjiang Transport Development Co., Ltd;|||
|companies at||||
||14.04% shares of Jilin Expressway Co., Ltd;|||
|home or overseas||||
||16.02% shares of Shangdong Hi-speed Co., Ltd;|||
|controlled by the||||
||17.75% shares of Fujian Expressway Development Co., Ltd;|||
|actual controller||||
||24.05% shares of Sichuan Expressway Company Limited;|||
|during the||||
||29.94% shares of Anhui Expressway Company Limited;|||
|Reporting Period||||
||13.86% shares of|Guangxi Wuzhou Communications Co., Ltd;||
||4.02% shares of Shenzhen Expressway Co., Ltd;|||
||11.69% shares of Jiangsu Expressway Company Limited;|||
||15.21% shares of|Hubei Chutian Expressway Co., Ltd;||
||15.43% shares of Henan Zhongyuan Expressway Co., Ltd;|||
||66.31% shares of Sinotrans Limited;|||
||60.95% shares of Sinotrans Air Transportation Development Co., Ltd.;|||
||68.70% shares of Sinotrans Shipping Ltd.;|||
||7.04% shares of Xiandai Touzi Co., Ltd;|||
||21.05% shares of Dalian Port (PDA) Company Limited;|||
||0.37% shares of Hunan Sunward Intelligent Machine Co., Ltd;|||
||0.16% shares of CMMB Vision Holdings Limited;|||
||1.20% shares of Oriental Times Media Co., Ltd;|||

There was no change of the actual controller of the Company during the reporting period.
China Merchants Port Group Co., Ltd. Annual Report 2018 Ownership and control relations between the actual controller and the Company:
State-Owned Assets Supervision and Administration Commission of the State Council
100%
China Merchants Group
100%
Broadford Global Limited
3.08% 100%
74.66%
China Merchants Gangtong
CMID
Development (Shenzhen) Co., Ltd.
20.68% 64.05%
||
|-|
|Public A-shareholders|
|Public B-shareholders|

Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset management.
□ Applicable√ Not applicable
4. Other10% or Greater Corporate Shareholders
||||||
|-|-|-|-|-|
||Legal||||
|Name of corporate|representative|Date of|Registered|Business scope or management|
|shareholders|/person in|establishment|capital|activities|
||charge||||
|China Merchants|||||
|Investment and|||HKD28,287,98|Investment management of equities|
||Fu Gangfeng|15 November 2013|||
|Development Co.,|||9,241|and others|
|Ltd|||||
|||||Provision of management services for|
|||||ports (without involving special|
|||||administrative measures on the access|
|||||of foreign investment); port|
|||||information inquiries, economic|
|China Merchants||||information consultation, economic|
|Gangtong|Deng||RMB9,446|information consultation, corporate|
|||16 January 2018|||
|Development|Weidong||million|management consultation, business|
|(Shenzhen) Co., Ltd.||||information consultation, brand|
|||||management consultation and|
|||||logistics information consultation|
|||||(excluding restricted items in each|
|||||case); technical development and|
|||||sales of ship machinery and|

China Merchants Port Group Co., Ltd. Annual Report 2018
||
|-|
|equipment; technical services in|
|respect of port loading and unloading|
|equipment; supporting businesses in|
|respect of the design, sales, import|
|and export of loading and unloading|
|tools, mechanical and electrical|
|products and non-ferrous metal|
|products (excluding precious metals)|
|(Commodities that involve state|
|trading, quota, license and special|
|administrative regulations shall be|
|operated through the application|
|pursuant to related state regulations);|
|technical development and technical|
|services in respect of modern|
|logistics information systems; supply|
|chain management and related|
|supporting services; design of|
|logistics plans; planning of corporate|
|image; planning of cultural exchange|
|activities (without involving special|
|administrative measures on the access|
|of foreign investment); marketing|
|planning; and planning of brand|
|image. (In each case, any item|
|forbidden by laws, administrative|
|regulations and the State Council|
|shall be excluded and restricted items|
|shall be operated upon the attainment|
|of the permission)|

5. Limitations on Shareholding Decrease by theCompany’s Controlling Shareholder, Actual Controller, Reorganizer and Other Commitment Makers
√ Applicable□ Not applicable
For details, see III. Fulfillment of commitments in Part V Significant Events of this report
China Merchants Port Group Co., Ltd. Annual Report 2018 Part VII Preferred Shares
□ Applicable√ Not applicable
No preferred shares in the Reporting Period.
Part VIII Directors, Supervisors, Senior Management and Staff I Change in Shareholdings of Directors, Supervisors and Senior Management
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Shares||Decreas|Other|Shares|
||||||||Increased||||
|||||||held at||ed|increa|held at|
||||||||shares of||||
|||Current/|||Starting and ending dates of|the||shares|se/dec|the|
|Name|Office title||Sex|Age|||the||||
|||former|||office term|period-b||of the|rease|period-e|
||||||||period||||
|||||||egin||period|(share|nd|
||||||||(share)||||
|||||||(share)||(share)|)|(share)|
||Chairman of|Incumbe|||||||||
|Fu Gangfeng|||Male|52|December 2018 to June 2020|0|0|0|0|0|
||the Board||||||||||
|||nt|||||||||
||Vice||||||||||
|||Incumbe|||||||||
|Deng Renjie|Chairman of||Male|48|December 2018 to June 2020|0|0|0|0|0|
||the Board|nt|||||||||
|||Incumbe|||||||||
|Bai Jingtao|Director||Male|53|September 2017 to June 2020|0|0|0|0|0|
|||nt|||||||||
|||Incumbe|||||||||
|Yan Shuai|Director||Male|46|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
|||Incumbe|||||||||
|Su Jian|Director||Male|46|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
|||Incumbe|||||||||
|Song Dexing|Director||Male|55|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
||Independent|Incumbe|||||||||
|Yuan Yuhui|||Male|68|June 2017 to June 2020|14,040|0|0|0|14,040|
||director||||||||||
|||nt|||||||||
||Independent|Incumbe|||||||||
|Su Qiyun|||Male|55|June 2017 to June 2020|0|0|0|0|0|
||director||||||||||
|||nt|||||||||
|Li|Independent|Incumbe|||||||||
||||Male|51|June 2017 to June 2020|0|0|0|0|0|
||director||||||||||
|Changqing||nt|||||||||
||Chairman of||||||||||
||the|Incumbe|||||||||
|Liu Yingjie|||Male|46|December 2018 to June 2020|0|0|0|0|0|
||Supervisory||||||||||
|||nt|||||||||
||Committee||||||||||
|||Incumbe|||||||||
|Hu Qin|Supervisor||Female|52|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
|||Incumbe|||||||||
|Yang Yuntao|Supervisor||Male|52|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
|||Incumbe|||||||||
|Ni Keqin|Supervisor||Female|54|June 2017 to June 2020|29,211|0|0|0|29,211|
|||nt|||||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Zheng||Incumbe|||||||||
||Supervisor||Male|48|June 2017 to June 2020|0|0|0|0|0|
|Linwei||nt|||||||||
|||Incumbe|||||||||
|Bai Jingtao|CEO||Male|53|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
||GM and|Incumbe|||||||||
|Zhang Yi|||Male|48|December 2018 to June 2020|0|0|0|0|0|
||COO|nt|||||||||
|Zheng||Incumbe|||||||||
||Vice GM||Male|56|December 2018 to June 2020|0|12,661|0|0|12,661|
|Shaoping||nt|||||||||
|||Incumbe|||||||||
|Yan Gang|Vice GM||Male|47|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
||Vice GM||||||||||
|Huang||Incumbe|||||||||
||and Board||Male|36|December 2018 to June 2020|0|0|0|0|0|
|Chuanjing||nt|||||||||
||Secretary||||||||||
|||Incumbe|||||||||
|Lu Yongxin|Vice GM||Male|50|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
|||Incumbe|||||||||
|Li Yubin|Vice GM||Male|47|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
|||Incumbe|||||||||
|Wen Ling|CFO||Female|53|December 2018 to June 2020|0|0|0|0|0|
|||nt|||||||||
||Chairman of||||September 2017 to December||||||
|Bai Jingtao||Former|Male|53||0|0|0|0|0|
||the Board||||||||||
||||||2018||||||
||Vice||||||||||
|Zhou|||||September 2017 to December||||||
||Chairman of|Former|Male|55||0|0|0|0|0|
|Qinghong|the Board||||2018||||||
|Lv|||||||||||
||Director|Former|Male|54|June 2017 to December 2018|0|0|0|0|0|
|Shengzhou|||||||||||
|Li Yubin|Director|Former|Male|47|June 2017 to December 2018|0|0|0|0|0|
||Managing||||||||||
|Liu Bin||Former|Male|49|June 2017 to December 2018|0|0|0|0|0|
||Director||||||||||
|Zhang|||||||||||
||Director|Former|Male|54|June 2017 to December 2018|74,282|0|0|0|74,282|
|Jianguo|||||||||||
||Chairman of||||||||||
||the||||||||||
|Zhao Jianli||Former|Female|55|June 2017 to December 2018|0|0|0|0|0|
||Supervisory||||||||||
||Committee||||||||||
|Sun Ligan|Supervisor|Former|Male|51|June 2017 to December 2018|0|0|0|0|0|
|Wen Ling|Supervisor|Former|Female|54|June 2017 to December 2018|0|0|0|0|0|
|Zhao|||||||||||
||Vice GM|Former|Male|53|June 2017 to December 2018|64,954|0|0|0|64,954|
|Chaoxiong|||||||||||
||Vice GM||||||||||
||and||||||||||
|Wang Yongli||Former|Male|51|June 2017 to December 2018|4,985|0|0|0|4,985|
||Secretary of||||||||||
||the Board||||||||||

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Lin Cong|Vice GM|Former|Male|60|June 2017 to December 2018||0|0|0|0|0|
|Yao|||||September 2017 to December|||||||
||CFO|Former|Female|52|||26,000|0|0|0|26,000|
|Shenglan|||||2018|||||||
|Total|--|--|--|--|--|--|432,045|0|0|0|432,045|

 II Change of Directors, Supervisors and Senior Management
||||||
|-|-|-|-|-|
|Name|Office title|Type of change|Date of change|Reason for change|
||Chairman of the||||
|Bai Jingtao||Left|6 December 2018|Job change|
||Board||||
|Zhou|Vice Chairman of|Left|||
||||13 December 2018|Job change|
||the Board||||
|Qinghong|||||
|Lv Shengzhou|Director|Left|13 December 2018|Job change|
|Li Yubin|Director|Left|13 December 2018|Job change|
||Managing|Left|||
|Liu Bin|||13 December 2018|Job change|
||Director||||
|Zhang||Left|||
||Director||13 December 2018|Job change|
|Jianguo|||||
||Chairman of the|Left|||
|Zhao Jianli|Supervisory||13 December 2018|Job change|
||Committee||||
|Sun Ligan|Supervisor|Left|13 December 2018|Job change|
|Wen Ling|Supervisor|Left|13 December 2018|Job change|
|Zhao||Left|||
||Vice GM||6 December 2018|Job change|
|Chaoxiong|||||
||Vice GM and|Left|||
|Wang Yongli|Secretary of the||13 December 2018|Job change|
||Board||||
|Lin Cong|Vice GM|Left|6 December 2018|Job change|
|Yao Shenglan|CFO|Left|6 December 2018|Job change|

 III Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors, supervisors and senior management:
Fu Gangfeng, Chairman of the Board, graduated from College of Highway,Chang’an University, majoring in accounting of Department of Economics and in management engineering of Department of Management, and obtainedbachelor’s degree andmaster’s degree respectively. Fu Gangfeng now holds the post of Director, General Manager of China Merchants Group Company Limited. Fu Gangfeng holds concurrent posts of Executive Director and Chairman of the Board of China Merchants Port Holdings Company Limited (CM Port Holdings), Vice President of China Merchants Bank Company Limited, Chief Supervisor of China Merchants Life Insurance Company
Limited. Fu Gangfeng has successively held the posts of Staff of ShekouZhonghua Accounting
Firm, Staff of Division of Chief Accountant of Shekou Industrial Zone, Deputy Director of
ShekouZhonghua Accounting Firm, Director of Division of Chief Accountant of Shekou Industrial
China Merchants Port Group Co., Ltd. Annual Report 2018 Zone, Deputy Chief Accountant of Shekou Industrial Zone, Financial Controller of Shekou Holdings, Financial Controller of Shekou Industrial Zone, General Manager of Finance Department of China Merchants Group, Deputy Financial Controller of China Merchants Group and Chief Accountant of China Merchants Group. Fu Gangfeng has been being the President of the Company since December 2018.
Deng Renjie, Vice Chairman of the Board, graduated from Dalian Maritime University, majoring in international economic law, and obtainedmaster’s degree. Deng Renjie now holds the post of Deputy General Manager of China Merchants Group Company Limited, President of Liaoning Port Group Co., Ltd. Deng Renjie has successively held the posts of Researcher of General Office of Ministry of Communications, Deputy Director of General Office of Hunan Provincial Party Committee, Deputy Secretary General of Hunan Provincial Party Committee, Deputy Secretary General of Party Committee of Xinjiang Autonomous Region, Assistant General Manager of China Merchants Group Company Limited and Director of General Manager. Deng Renjie holds concurrent posts of Executive Director, Vice Chairman of the 8th Council of China Highway and Transportation Society. Deng Renjie has been being the Vice Chairman of the Board of the Company since December 2018.
Bai Jingtao, Director and Chief Executive Officer, Professor Level Senior Engineer, graduated from Department of Water Conservancy of Tianjin University and obtainedbachelor’s degree in port and waterway engineering. Later Bai Jingtao studied at Graduate School of Wuhan University of Technology, Graduate School of Shanghai Maritime University and obtainedmaster’s degree in management science and engineering,doctor’s degree in transportation planning and management respectively. Bai Jingtao now holds the post of Managing Director of China Merchants Port Holdings Company Limited (CM Port Holdings). Bai Jingtao has successively held the posts of Assistant Engineer of CCCC Water Transportation Consultants Co., Ltd, Principal Staff of Division of Engineering Management and Division of Infrastructure Management of Ministry of Communications, Deputy Director and Director of Division of Infrastructure Management and Division of Water Transport of Ministry of Communications, Deputy General Manager of China Merchants Zhangzhou Development Zone Co., Ltd and Director of Zhangzhou Port Authority, Deputy Director of Xiamen Port Authority and Executive Deputy Commander of Construction Headquarters of Xiamen Haicang Bonded Port Area, Deputy General Manager of China Merchants International Company Limited, Secretary of the Party Committee of China Merchants Zhangzhou Economic and Technological Development Zone and Executive Deputy Director of Management Committee, Secretary of the Party Committee and General Manager of China Merchants Zhangzhou Economic and Technological Development Zone Company Limited. Bai Jingtao has been being the Director of the Company since September 2017 and Chief Executive Officer of the Company since December 2018.
Yan Shuai, Director, graduated from Harbin Engineering University, majoring in industrial automation, and obtainedbachelor’s degree in engineering. Later Yan Huai obtainedmaster’s degree in management at Beijing University of Aeronautics and Astronautics. Yan Shuai now holds the posts of Director of Human Resources Department, Director of Party Committee Office, Director of Organization Department of Party Committee and Director of Department of Party-Mass Work of China Merchants Group. Yan Shuai has successively held the posts of Deputy Researcher of General Office of the State Council of thePeople’s Republic of China Second Secretariat, Member of Party Committee, Deputy General Manager and Secretary of Committee of Discipline Inspection of China Merchants Group Finance Co., Ltd., Deputy Director (principal person) of Human Resources Department of China Merchants Group Company Limited. Yan Shuai has been being the Director of the Company since December 2018.
Su Jian, Director, Non-Practicing Member of The Chinese Institute of Certified Public
China Merchants Port Group Co., Ltd. Annual Report 2018 Accountants, Intermediate Accountant, graduated from Department of Economics of Shanghai University of Finance and Economics, and obtainedbachelor’s degree in economics. Li Jian now holds the post of Director of Finance Department (Property Right Department) of China Merchants Group Company Limited. Li Jian has successively held the post of Financial Manager of China Merchants International Travel Co., Ltd., Senior Manager of Finance Department of China Merchants Shekou Industrial Zone, Senior Manager of Finance Department of China Merchants Group Company Limited, Assistant Director of Finance Department, Deputy Director of Finance Department, Deputy Director of Human Resources Department, Deputy Director of Party Committee Office, Deputy Director of Organization Department of Party Committee, Deputy Director of Property Right Department (principal person), Secretary of Party Committee, Secretary of Committee for Discipline Inspection, Deputy General Manager of China Merchants Industrial Group Company Limited. Li Jian has been being the Director of the Company since December 2018.
Song Dexing, Director, Senior Engineer, graduated from Department of Mechanics of Wuhan University of Technology (former name is Wuhan Institute of Water Transportation Engineering), and obtainedbachelor’s degree in engineering. Later Song Dexing obtainedmaster’s degree, majoring in transportation planning at Wuhan University of Technology anddoctor’s degree in management, majoring in administrative management at Huazhong University of Science and Technology. Song Dexing now holds the posts of Director of Transportation& Logistics Business Department/Beijing Headquarters of China Merchants Group Company Limited, Executive Director, General Manager, Secretary of Party Committee ofSINOTRANS&CSC. Song Dexing has successively held the posts of Secretary of Youth League Committee, Engineer of Water Transport Planning& Design Institute of Ministry of Communications, Principal Staff of Division of Transport of Ministry of Communications, Deputy Director, Director of Container Office of Division of Water Transport of Ministry of Communications, Deputy Mayor of Luoyang MunicipalPeople’s Government (temporary post), Deputy Director of China Waterborne Transport Research Institute, Deputy Director, Director of Yangtze Three Gorges Navigation Administration, Deputy Director, Director of Division of Water Transport of Ministry of Communications, Director of Bureau of Water Transport of Ministry of Transport (Director of Taiwanese Affairs Office of the ministry), Vice President, Member of Party Committee, Deputy Secretary of Party Committee, Secretary of Committee for Discipline Inspection ofSINOTRANS&CSC, General Manager ofSINOTRANS&CSC, Director of Department of Comprehensive Logistics Business of China Merchants Group Company Limited. Song Dexing has been being the Director of the Company since December 2018.
Yuan Yuhui, Independent Director, MBA, now acts as the Director of Shenzhen Riland Industrial Co., Ltd. He once acted as the Vice GM, Vice Director of China Nanshan Development (Group) Incorporation and the Director of the Company. And he has been being the Independent Director of the Company since August 2015.
Su Qiyun, Independent Director, graduated from Xiamen University of Department of Law with a master degree of Civil and Commercial Law and a doctor degree of Wuhan University of Law. He now is the founding partner of Beijing Deheng Law Office. He used to serve as Manager of Investment Department of Ping An Insurance Company of China, as Cadres of Shenzhen Industry and Commerce Administration. And he has been an Independent Director of the Company since May 2014.
Li Changqing, Independent Director, graduated from Xiamen University with a doctor degree of Accounting, and also is a CPA, an excellent talent of new century of Ministry of Department, a prominent talent of Xiamen as well as a guide tutor of Postdoctoral Center of SSE. He now is the Director of Senior Business Administration Education Center, professor and doctoral supervisor of
China Merchants Port Group Co., Ltd. Annual Report 2018 Xiamen University. And he has been being an Independent Director of the Company since May 2014.
Liu Yingjie, Chairman of the Supervisory Committee, graduated from Capital University of Economics and Business, majoring in accounting, and obtainedbachelor’s degree in economics. Liu Yingjie now holds the post of Director of Risk Control Department/Law and Compliance Department of China Merchants Group. Liu Yingjie has successively held the posts of Deputy Director, Director of Division of Comprehensive Audit of Supervision Department of COSCO, Director of Division of Computer Audit, Assistant Director, Deputy Director of Risk Control Department/Audit Department of China Merchants Group. Liu Yingjie has been being the Chairman of the Supervisory Committee of the Company since December 2018.
Hu Qin, Supervisor, graduated from Peking University, majoring in international law, and obtainedmaster’s degree in law. Later Hu Qin studied at NUS Business School and obtainedmaster’s degree in management. Hu Qin now holds the post of Deputy Director of Risk Control Department/Law&Compliance of China Merchants Group. Hu Qin has successively held the posts of Deputy General Manager of Planning Department of China Merchants Shekou Industrial Zone Company Limited, General Manager and General Counsel of Department of Legal Affairs, General Counsel of China Merchants Shekou Industrial Zone Holdings Co., Ltd., Deputy Director of Risk Control Department of China Merchants Group, Deputy Director of Legal Department. Hu Qin has been being the Supervisor of the Company Since December 2018.
Yang Yuntao, Supervisor, graduated from Jilin University, majoring in international law, and obtainedbachelor’s degree in law. Later Yang Yuntao studied at School of Law, University of International Business and Economics, and obtaineddoctor’s degree in law. Yang Yuntao now holds the posts of Deputy Director of Transportation& Logistics Business Department/Beijing Headquarters of China Merchants Group Company Limited, Deputy General Manager and General Counsel ofSINOTRANS&CSC, Member of Party Committee. Yang Yuntao has successively held the posts of Deputy General Manager of Port Business Department of Sino-Trans China National Foreign Trade Transportation Corporation, General Manager of Law Department, Director, Deputy General Manager (principal person) of SINOTRANS (Hong Kong) Group Company Limited, Non-Executive Director of SINOTRANS Limited, General Manager of Law Department of Sino-Trans China Foreign Trade Transportation (Group) Corporation, General Manager, Deputy General Counsel, General Counsel of Law Department of SINOTRANS& CSC. Yang Yuntao has been being the Supervisor of the Company since December 2018.
Ni Keqin, Supervisor, is the Deputy GM of Chiwan Container Terminal Co., Ltd. now. She took the positions of Manager Assistant, Deputy Manager as well as Manager of the Operation Department and GM Assistant of CCT successively. She has been being the Supervisor of the Company since May 2008.
Zheng Linwei, Supervisor, graduated from NJAU, with a bachelor degree of Agricultural Foreign Trade and graduated from Shanghai Maritime University with MBA in 2004. He now serves as Vice GM of the Harbor Division, Dongguan Shenzhen Chiwan Wharf Holdings Limited and Dongguan Shenzhen Chiwan Terminal Co., Ltd. He has been being worked at the Harbor Division of the Company from August 1993. He once acted as Director of Operation Room of Department II of Commercial Freight of the Harbor Division of the Company, Manager Assistant, Vice Manager, and Manager of Department II of Commercial Freight. And he has been being the Supervisor of the Company since May 2014.
Zhang Yi, General Manager and Chief Operational Officer, graduated from Wuhan Institute of Water Transportation Engineering and obtainedbachelor’s degree in transportation management engineering. Later Zhang Yi obtaineddoctor’s degree in engineering at Wuhan University of
China Merchants Port Group Co., Ltd. Annual Report 2018 Technology. Zhang Yi now holds the post of Deputy General Manager of China Merchants Port Holdings Company Limited (CM Port Holdings). Zhang Yi has successively held the posts of Planner of Planning Division of Zhanjiang Port Authority, Deputy Director of Planning Development Division of Zhanjiang Port Authority, Assistant Director of Zhanjiang Port Authority, Director, President, Secretary of Party Committee of Zhanjiang Port Group Company Limited. Zhang Yi has been being the GeneralManager&COO of the Company since December 2018. Zheng Shaoping, Vice General Manager, graduated from Dalian Maritime University for postgraduate, majoring in international maritime law. Later Zheng Shaoping obtainedmaster’s degree in business administration at The University of Wales. Zheng Shaoping now holds the posts of Executive Director and Deputy General Manager of China Merchants Port Holdings Company Limited (CM Port Holdings). Zheng Shaoping has successively held the posts of Vice President of China Merchants Bonded Logistics Co., Ltd., President of Shekou Container Terminals Ltd., General Manager and President of Chiwan Container Terminal Co., Ltd. (CCT), General Manager and President of Shenzhen Chiwan Container Co., Ltd., Managing Director and President of Shenzhen Chiwan Wharf Holdings Limited (CWH). Zheng Shaoping has been being the Deputy General Manager of the Company since December 2018.
Yan Gang, Vice General Manager, graduated from Xiamen University, and obtainedbachelor’s degree in international trade. Later Yan Gang obtainedmaster’s degree in business administration jointly run by MSM and Shanghai Maritime University. Yan Gang now holds the post of Deputy General Manager of China Merchants Port Holdings Company Limited (CM Port Holdings). Yan Gang has successively held the posts of Logistics General Manager in Pearl River Delta of Hong Kong Air Cargo Terminals Limited (HACTL) dispatched by Swire Group, Deputy General Manager, Executive Deputy General Manager, General Manager of Shekou Container Terminals Ltd., Chief Business Officer of China Merchants Port Holdings Company Limited (CM Port Holdings). Yan Gang has been being the Deputy General Manager of the Company since December 2018.
Huang Chuanjing, Vice General Manager and Board Secretary, graduated from the English Department of Shandong University of Science and Technology with abachelor’s degree in arts. Later, he obtained amaster’s degree in business administration at The University of Wales. He once was the Director of Wharf Operation Department of China Merchants International Qingdao Wharf Company Limited, Assistant of GeneralManager’s Office, Director of Administration Department of China Merchants International Company Limited, Assistant Director of General Office of China Merchants Group, Senior Manager, Assistant General Manager of General Office of China Merchants Group Company Limited, Assistant Director of General Office and secretary of the board of China Merchants Group Company Limited, Assistant Director of Board of Directors Office, Chief of Board Secretariat of General Office, Deputy Director of Board of Directors Office of China Merchants Group Company Limited. Huang Chuanjing has been acting as the Vice General Manager of the Company since December 2018.
Lu Yongxin, Vice General Manager, graduated from Dalian University of Technology, and obtainedbachelor’s degree in English for science and technology. Later Lu Yongxin graduated from Curtin University and obtainedmaster’s degree in project management. Lu Yongxin now holds the post of Deputy General Manager of China Merchants Port Holdings Company Limited (CM Port Holdings). Lu Yongxin has successively held the posts of Assistant General Manager of Zhenhua Construction Co. Ltd., Deputy Director of CHEC (Beijing) Head Office, Deputy General Manager of Research& Development Department of China Merchants Port Holdings Company Limited (CM Port Holdings), General Manager of Overseas Business Department, Assistant General Manager. Lu Yongxin has been dispatched to Terminal Link in France to act as CFO and Senior Vice President. Lu Yongxin has been as the Vice General Manager of the Company since December 2018.
China Merchants Port Group Co., Ltd. Annual Report 2018 Li Yubin, Vice General Manager, graduated from Tianjin University, majoring in engineering management, and obtainedmaster’s degree. Later Li Yubin graduated from The University of Hong Kong and obtaineddoctor’s degree in real estate and construction. Li Yubin now holds the post of Deputy General Manager of China Merchants Port Holdings Company Limited (CM Port Holdings) and General Manager of China Merchants Bonded Logistics Co., Ltd. Li Yubin has successively held the posts of Deputy General Manager of Road and Bridge Project of China Harbor Company in Bangladeshi Office, Project Director of Overseas Business Department of CHEC, Assistant General Manager of Planning and Commerce Department of China Merchants Port Holdings Company Limited (CM Port Holdings), General Manager, Deputy General Economist of Strategy and Operation Management Department, General Manager, Deputy General Economist of Strategy and Operation Department, General Manager of China Merchants Bonded Logistics Co., Ltd. Li Yubin has been acting the Vice General Manager of the Company since December 2018.
Wen Ling, Chief Financial Officer, graduated from Finance Dept. in Southwestern University of Finance and Economics with a master degree. Wen is now the CFO of China Merchants Port Holdings Company Limited. Wen was once the Deputy Financial Manager of China Merchants Port Service (Shenzhen) Co., Ltd., the Financial Manager of Shenzhen Mawan Port Services Co., Ltd. and the Vice Financial Manager, Senior Vice Financial Manager, and GM of Capital Operation Dept. in China Merchants Port Holdings Company Limited. And Wen has been acting as the CFO of the Company since December 2018.
Offices held concurrently in shareholding entities:
||||||
|-|-|-|-|-|
|||||Remuneration|
|||||or allowance|
|||Office held in the shareholding|||
|Name|Shareholding entity||Term of office|from the|
|||entity|||
|||||shareholding|
|||||entity|
|Fu|China Merchants Investment and||||
|||Director|August 2014 to now|No|
|Gangfeng|Development Co., Ltd||||

Offices held concurrently in other entities:
||||||
|-|-|-|-|-|
|||||Remuneration or|
|||Office held in the|||
|Name|Other entity||Term of office|allowance from|
|||entity|||
|||||the entity|
|||Director|||
||China Merchants Shipping Co., Ltd||August 2014 to now|No|
|||Director|||
||China Merchants Group (H.K.) Limited||August 2003 to now|No|
|||Chairman of the|||
||China Merchants Port Holdings Company Limited||March 2018 to now|No|
|||Board|||
|Fu|||||
|Gangfeng||Vice Chairman of|||
||China Merchants Bank Co.,Ltd||August 2010 to now|No|
|||the Board|||
|||Chairman of the|||
||China Merchants Life Insurance Co., Ltd|Supervisory|July 2017 to now|No|
|||Committee|||

Punishments imposed in the recent three years by the securities regulator on the incumbent directors,
supervisors and senior management as well as those who left in the Reporting Period:
China Merchants Port Group Co., Ltd. Annual Report 2018□ Applicable√ Not applicable
IV Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors and senior management:
Decision-making procedure for the remuneration of directors, supervisors and senior management: Remunerations for theCompany’s directors, supervisors and senior management shall be nominated by the Board of Directors and determined upon review of the Remuneration and Appraisal Committee. Allowance for Independent Directors is RMB100,000/year (tax included), which has been approved at the 2016 Annual General Meeting
Determining basis for the remuneration of directors, supervisors and senior management: The modes and amounts of the remuneration for directors, supervisors and senior management are determined according to the market levels with the post value, responsibilities, etc. taken into account.
Actual payment for the remuneration of directors, supervisors and senior management: Salaries and independent director allowances were paid to directors, supervisors and senior executives on a monthly basis. And the other bonuses were paid all at one time according to the performance of each of them.
Unit:RMB’0,000
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Name|Office title||Gender|Age|Incumbent/Former||Total|Any remunerationfrom related party||
||||||||before-tax|||
||||||||remuneratio|||
||||||||n from the|||
||||||||Company|||
|Fu Gangfeng|Chairman ofthe Board||Male|52|Incumbent|0|||Get paid from|
||||||||||China Merchants|
||||||||||Group|
|Deng Renjie||Vice|Male|48|Incumbent|0|||Get paid from|
|||Chairman of|||||||China Merchants|
|||the Board||||||||
||||||||||Group|
|Bai Jingtao|Director andCEO||Male|53|Incumbent|247||||
|Yan Shuai|Director||Male|46|Incumbent|0|||Get paid from|
||||||||||China Merchants|
||||||||||Group|
|Su Jian|Director||Male|46|Incumbent|0|||Get paid from|
||||||||||China Merchants|
||||||||||Group|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||||
|-|-|-|-|-|-|-|-|-|
|Song Dexing|Director||Male|55|Incumbent|0||Get paid from|
|||||||||China Merchants|
|||||||||Group|
|Yuan Yuhui|Independentdirector||Male|68|Incumbent|10|||
|Su Qiyun|Independentdirector||Male|55|Incumbent|10|||
|LiChangqing|Independentdirector||Male|51|Incumbent|10|||
|Liu Yingjie||Chairman of|Male|46|Incumbent|0|Get paid fromChina MerchantsGroup||
|||the|||||||
|||Supervisory|||||||
|||Committee|||||||
|Hu Qin|Supervisor||Female|52|Incumbent|0||Get paid from|
|||||||||China Merchants|
|||||||||Group|
|Yang Yuntao|Supervisor||Male|52|Incumbent|0||Get paid from|
|||||||||China Merchants|
|||||||||Group|
|Ni Keqin|Supervisor|||54|Incumbent|124|||
|ZhengLinwei|Supervisor||Male|48|Incumbent|108|||
|Zhang Yi|GM andCOO||Male|48|Incumbent|16|||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||
|-|-|-|-|-|-|-|
|ZhengShaoping|Vice GM|Male|56|Incumbent|18||
|Yan Gang|Vice GM|Male|47|Incumbent|14||
|HuangChuanjing|Vice GM andBoardSecretary|Male|36|Incumbent|9||
|Lu Yongxin|Vice GM|Male|50|Incumbent|14||
|Li Yubin|Vice GM|Male|47|Incumbent|144||
|Wen Ling|CFO|Female|53|Incumbent|129||
|ZhouQinghong|ViceChairman ofthe Board|Male|53|Former|162||
|LvShengzhou|Director|Male|55|Former|140||
|Liu Bin|ManagingDirector|Male|47|Former|127||
|ZhangJianguo|Director|Male|49|Former|0|Get paid from|
|||||||China Nanshan|
|||||||Development|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||(Group)|
|||||||||||||Incorporation|
|Zhao Jianli||Chairman oftheSupervisoryCommittee||Female||54||Former||112|||
|Sun Ligan||Supervisor||Male||55||Former||92|||
|ZhaoChaoxiong||Vice GM||Male||53||Former||111|||
|Wang Yongli||Vice GM andSecretary ofthe Board||Male||51||Former||110|||
|Lin Cong||Vice GM||Male||60||Former||108|||
|YaoShenglan||CFO||Female||52||Former||79|||
||Total||--||--||--||--||1,894|--|

Equity incentives for directors, supervisors and senior management in the Reporting Period:
□ Applicable√ Not applicable
V Employees
1. Number, Functions and Educational Backgrounds of Employees
||||
|-|-|-|
|Number of in-service employees of the Company as|284||
|the parent|||
|Number of in-service employees of major subsidiaries||9284|
|Total number of in-service employees||9568|
|Total number of paid employees in the Reporting|9568||
|Period|||

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|Number of retirees to whom the Company as the|2231||
|parent or its major subsidiaries need to pay retirement|||
|pensions|||
|Functions|||
|Function||Employees|
|Production and operation||5635|
|Business||536|
|Technical||1983|
|Financial||455|
|Administrative||959|
|Total|9568||
|Educational backgrounds|||
|Educational background||Employees|
|Master’s degree and above||311|
|Bachelor’s degree||1923|
|Junior college||2405|
|Technical secondary school and below||4929|
|Total|9568||

 2. Employee Remuneration Policy
The Company observes the principle of efficiency first with the consideration given to fairness and sustainable development for its remuneration system, determines the general remuneration level according to its strategic goals and market competitiveness, defines the remuneration grade according to the principles of internal fairness and performances with the priority given to employees with excellent performance, and establishes a structured broadband remuneration system. Based on its medium- and long-term development planning and key performance goals, the Company dynamically adjusts its remuneration strategies and implementation policies and exerts control over the total remuneration.
The Company keeps exploring diverse remuneration incentive mechanisms, promotes medium- and long-term incentive schemes, enhances the motivation of remuneration, attracts and retains excellent employees and builds a talent team matching the development of the Company.
3. Employee Training Plans
The Company is dedicated to creating a platform for the development and promotion of global port professionals, provides domestic and foreign employees with learning opportunities, opens channels for global career development and helps employees to keep improving themselves with the development of the Company. Meanwhile, it provides its peers with opportunities of coming to China for exchange to share knowledge and values. In 2018, the Company further optimized the training system, integrated internal and external training resources, and established a series of key training projects at different levels with different categories, including the project series on strategic leadership of senior executive project series, the project series on enhancement of global management and implementation of middle-level key leaders and the projects on the enhancement
of professional and general abilities for junior employees. The Company shall, based on the
network platform, develop terminal learning APP, and share training resources openly, enlarging
the learning timely and effectively at a low cost. Strengthening the communications and
China Merchants Port Group Co., Ltd. Annual Report 2018 collaboration between various units, it shall achieve the comprehensive integration of talents training under the guidance of the Company. The Company actively fulfilled the social responsibility, carrying out the “Co-creating Blue Dream-21th Century Maritime Silk Road Talents Plan” of China Merchants Port, which cultivate professionals of port and shipping for countries along the One Belt and One Road. As of the end of 2018, the project had cultivated 110 young backbone talents from 19 countries on 4 continents. Meanwhile, the Company participated in “Zhangqian project” of Hongkong sea silk association and other practical projects for students, providing Hongkong university students with meaningful overseas internship opportunity, and actively promoting the cooperation of the university and enterprises.
4. Labor Outsourcing
□ Applicable√ Not applicable
China Merchants Port Group Co., Ltd. Annual Report 2018 Part IX Corporate Governance
I General Information of Corporate Bonds
Ever since its establishment, the Company has been in strict compliance with the company law and securities law, as well as relevant laws and regulations issued by CSRC. And it has timely formulated and amended its relevant management rules according to the Code of Corporate Governance for Listed Companies, which are conscientiously and carefully executed. An effective system of internal control has thus taken shape in the Company. Details about corporate governance within the reporting period are set out as below:
1. During the Reporting Period, the Company included Party building work in its Articles of Incorporation pursuant to the requirements of the Notice on the Inclusion of Party Building Work into the Articles of Incorporation issued by the superior Party committee. The revision was reviewed and approved at the 3rd Meeting of the 9th Board of Directors held on 3 March 2018. Subsequently, it was reviewed and approved at theCompany’s 2017 Annual General Meeting held on 28 March 2018.
2. During the Reporting Period, to further refine theCompany’s governance structure and promote standard operations within the Company, pursuant to the Stock Listing Rules of Shenzhen Stock Exchange, the Rules of Shenzhen Stock Exchange for Stock Listing on ChiNext, the CSRC Releases No. 3 Guideline for the Supervision of Listed Companies - Cash Dividend Distribution of Listed Companies, the Notice on Further Implementing Matters in Respect of the Cash Dividend Distribution of Listed Companies, the Opinions of the General Office of the State Council on Further Strengthening the Protection of the Legitimate Rights and Interests of Minority Investors in the Capital Market, the Rules of Annual General Meeting of Listed Companies, the Guidance Opinions on the Establishment of the Director System in Listed Companies, the Rules on the Report of the Use of Previously Raised Fund, the CSRC Releases No. 2 Guideline for the Supervision of Listed Companies - Administration of Funds Raised by Listed Companies and Applicable Supervision Requirements, the Management Rules on the Shares of the Company Held by Directors, Supervisors and Senior Management of Listed Companies and the Changes, the Rules on Decreased Shareholding of Shareholders, Directors, Supervisors and Senior Management of Listed Companies and the Implementation Rules of Shenzhen Stock Exchange for Decreased Shareholding of Shareholders, Directors, Supervisors and Senior Management of Listed Companies, the Company revised the Articles of Incorporation, the Rules of Procedures for the Annual General Meeting, the Rules of Procedures for the Board of Directors, the Work Policy for Independent Directors, the Management Policies for Raised Funds, and the Management Policies for the Shares of the Company Held by Directors, Supervisors and Senior Management and the Changes. The revisions were reviewed and approved at the 5th Special Meeting of the 9th Board of Directors of 2018 held on 19 June 2018. The Articles of Incorporation, the Rules of Procedures for the Annual General Meeting, the Rules of Procedures for the Board of Directors, the Work Policy for Independent Directors and the Management Policies for Raised Funds were reviewed and approved subsequently at the 2nd Extraordinary General Meeting of 2018 held on 26 July 2018.
3. During the Reporting Period, based on the change in theCompany’s name as well as theCompany’s plan to change its address and increase the number of deputy general managers according to the operational management requirements and pursuant to the Decision of NPSCS on the Amendment to the Company Law of thePeople’s Republic of China published and
China Merchants Port Group Co., Ltd. Annual Report 2018 implemented on 26 October 2018, considering its actual status of development, the Company revised the Articles of Incorporation, which was reviewed and approved at the 8th Special Meeting of the 9th Board of Directors of 2018 held on 27 November 2018, and subsequently reviewed and approved at the 3rd Extraordinary General Meeting of 2018 held on 13 December 2018.
4. Shareholders andshareholders’ general meeting: the Company ensures that all the shareholders, especially minority shareholders, are equal and could enjoy their full rights. The Company called and heldshareholders’ general meeting strictly in compliance with the Rules forShareholders’ General Meeting.
5. Relationship between the controlling shareholder and the Company: controlling shareholder of the Company acted in line with rules during the reporting period, did not intervened the decisions, productions or operations of the Company directly or indirectly in exceeding the authority of theshareholders’ general meeting, and did not appropriate any funds of the Company.
6. Directors and the Board of Directors: the Company elected directors in strict accordance with the Articles of Association. Number and composition of members of the Board were in compliance with relevant laws and regulations; all Directors attend Board meetings andshareholders’ general meeting in a serious and responsible manner and participated enthusiastically relevant training so as to know better about laws and regulations as well as the rights, obligations and liabilities of Directors. The Company The Company set up the Audit Committee as approved by The 1st Extraordinary General Meeting of 2004 and the Nomination, Remuneration and Evaluation Committee and Strategy Committee as approved by the 2005 Annual General Meeting, with a view to ensuring the efficient operation and scientific decision-making of the Board of Directors.
7. Supervisors and the Supervisory Committee: number and composition of the members of the Supervisory Committee were in compliance with the requirements of laws and regulations. The supervisors diligently and seriously performed their duties and obligations, took responsible attitudes to all shareholders and supervised the financial affair as well as the performance by theCompany’s Directors, managers and other senior executives of their duties in compliance with the laws and regulations.
8. Stakeholders: the Company fully respected and safeguarded the legal rights and interests of the banks and other creditors, staff, clients and other stakeholders so as to develop the Company in a consistent and healthy way.
9. Information disclosure and transparency: the Company authorized the Board Secretary to take charge of information disclosure, and the Chairman as well as related Directors to meet with shareholders. The Company disclosed relevant information in a true, accurate, complete and timely way in strict accordance with the requirements of laws, regulations and the Articles of Association, formulated the Management Rules on Information Disclosure, the Management System on Inside Information and Insiders and the Rules on the Management of Investors Relations, and designated Securities Times, Ta Kung Pao and http://www.cninfo.com.cn as its newspaper and website for information disclosure, so as to ensure all shareholders have equal opportunity to obtain the information.
10. Corporate governance mechanisms and rules that the Company already established:
Articles of Association of the Company, Rules of Procedure for General Meetings, Working Articles
China Merchants Port Group Co., Ltd. Annual Report 2018 of Audit Committee of the Board of Directors, Working Rules of Annual Report for Audit Committee of the Board of Directors, Working Articles for Nomination, Remuneration and Evaluation Committee of the Board of Directors; Working Articles of Strategy Committee of the Board of Directors, Working System for Independent Directors, Working Rules of Annual Report for Independent Directors, Rules of Procedure for Supervisory Board, Working Articles of General Manager, Management System for Company Shares held by Directors, Supervisors and Senior Executives and Its Changes, Management System of Foreign Investment, Decision-making Mechanism of Related Transactions, Management System of Fund-raising, Management Rules on Information Disclosure, Rules of Accountability for Significant Mistakes in Annual Report Information Disclosure, Management System on Inside Information and Insiders, Internal Audit System, Management System ofInvestors’ Relations, Specific System for Engaging Accountants, Management Method of Financial Tools, Management System on Person in Charge of Finance and CFO, Information Disclosure Management Rules for the Inter-bank Debt Financing Instrument, etc. Thereisn’t difference between the actual circumstances of the Company and all established systems.
Since the foundation, the Company was consistently in strict accordance with Company Law and relevant laws and regulations to make a standard operation, continued business-running in line with relevant requirements of Corporate Governance Principle for Listed Companies and earnestly made effort to protect profit and interests of shareholders and stakeholders.
Indicate by tick market whether there is any material incompliance with the regulatory documents issued by the CSRC governing the governance of listed companies.
□ Yes√ No
II TheCompany’s Independence from Its Controlling Shareholder in Business, Personnel, Asset, Organization and Financial Affairs
The Company is absolutely independent in business, personnel, assets, finance and organization from its controlling shareholder. Details are set out as follows.
Separation in business: The Company has its own assets, personnel, qualifications and ability to carry out operating activities and is able to operate independently in the market. Separation in personnel: The Company has basically separated its staff from its controlling shareholder. No senior management staff of the Company holds positions at controlling shareholder of the Company. Separation in assets: The Company possesses its own self-governed assets and domicile. Separation in organization: The Company has established and improved the corporate governance structure according to law and has an independent and complete organizational structure. Separation in finance: The Company has set up its own financial department as well as normative accounting system and the financial management system on its subsidiaries. The Company has its own bank accounts and does not share the same bank account with its controlling shareholder. The Company has been paying tax in accordance with the laws and regulations on its own behalf.
III Horizontal Competition
□ Applicable√ Not applicable
China Merchants Port Group Co., Ltd. Annual Report 2018 IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
|||||||
|-|-|-|-|-|-|
|||Investor||||
||||||Index to disclosed|
|Meeting|Type|participati|Date of the meeting|Disclosure date||
||||||information|
|||on ratio||||
||||||For the resolution|
|The 1st||||||
||Extraordinary||||announcement (No.|
|Extraordinary||||||
||General|75.04%|13 February 2018|14 February 2018|2018-018), see|
|General Meeting of||||||
||Meeting||||http://www.cninfo.co|
|2018||||||
||||||m.cn|
||||||For the resolution|
||Annual||||announcement (No.|
|The 2017 Annual||||||
||General|75.49%|28 March 2018|29 March 2018|2018-037), see|
|General Meeting||||||
||Meeting||||http://www.cninfo.co|
||||||m.cn|
||||||For the resolution|
|The 2nd||||||
||Extraordinary||||announcement (No.|
|Extraordinary||||||
||General|75.50%|26 July 2018|27 July 2018|2018-078), see|
|General Meeting of||||||
||Meeting||||http://www.cninfo.co|
|2018||||||
||||||m.cn|
||||||For the resolution|
|The 3rd||||||
||Extraordinary||||announcement (No.|
|Extraordinary||||||
||General|75.22%|13 December 2018|14 December 2018|2018-114), see|
|General Meeting of||||||
||Meeting||||http://www.cninfo.co|
|2018||||||
||||||m.cn|

2. Extraordinary General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting Rights
□ Applicable√ Not applicable
V Performance of Duty by Independent Directors in the Reporting Period
1. Attendance of Independent Directors at Board Meetings and General Meetings
|||||||||
|-|-|-|-|-|-|-|-|
|Attendance of independent directors at board meetings and general meetings||||||||
|||||||The||
||Total|||||||
|||||||independent||
||number of||Board||Board|||
|||||Board||director||
||board|Board|meetings||meetings the|||
|||||meetings||failed to|General|
|Independent|meetings the|meetings|attended by||independent|||
|||||attended||attend two|meetings|
|director|independent|attended on|way of||director|||
|||||through a||consecutive|attended|
||director was|site|telecommuni||failed to|||
|||||proxy||board||
||eligible to||cation||attend|||
|||||||meetings||
||attend|||||||
|||||||(yes/no)||
|Yuan Yuhui|12|4|8|0|0|No|1|

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||||||
|-|-|-|-|-|-|-|-|
|Su Qiyun|12|4|8|0|0|No|4|
|Li Changqing|12|4|8|0|0|No|2|

 Why any independent director failed to attend two consecutive board meetings:
Not applicable.
2. Objections Raised by Independent Directors on Matters of the Company
No independent directors raised any objections on any matter of the Company during the Reporting Period.
3. Other Information about the Performance of Duty by Independent Directors
Indicate by tick mark whether any suggestions from independent directors were adopted by the Company.
√ Yes□ No
Suggestions from independent directors adopted or not adopted by the Company:
During the reporting period, all independent directors of the Company probity and self-discipline, fulfill their duties in line with their expertise and experience; earnestly and diligently perform their duties. The independent directors actively known about theCompany’s business and operation, protected the interests of minority shareholders, brought their roles as independent directors into full play by participating in discussions on reports reviewed at board sessions and other issues of the Company, and proposed professional suggestions on standard governance and production operation which had been adopted by the Company. They carefully reviewed and issued independent opinions in written form on significant events such as material related-party transactions in accordance with relevant requirements and had play a important role in scientific decision-making of the Board. In accordance with the requirements of CSRC and Shenzhen Stock Exchange, the “Working Rules for Independent Directors” and the “Working Rules for Independent Directors Concerning Annual Reports, they performed their obligations with due diligence and fully oversaw the preparation and disclosure of the Annual Report of the Company. For details of performance by independent directors of their duties, please refer to the work report of independent directors for 2017 as disclosed at http://www.cninfo.com.cn.
VI Performance of Duty by Specialized Committees under the Board in the Reporting Period (I) Performance of the Audit Committee of the Board of Directors
The members of Audit Committee include independent director Li Changqing (convener), director Su Jian, and independent director Su Qiyun. During the Reporting Period, the Audit Committee of the Board in line with the requirements of CSRC and Shenzhen Stock Exchange, Articles of Association, Working Rules for the Audit Committee of the Board (“Working Rules”) and the Working Practices for the Audit Committee of the Board on Annual Report (“Working Practices”) performed their duties, and give full play to their expertise and experience, earnestly examine the Company's annual audit, reviewing of financial statement, internal control, and other significant financial information, providing the Board ofDirectors’ scientific and efficient decision-making
with professional support.
1. Particulars about the Meetings
China Merchants Port Group Co., Ltd. Annual Report 2018 During the Reporting Period, the Audit Committee of the Board held a total of five meetings, with details as follows:
(1) The 1st Meeting of the Audit Committee of the 9th Board of Directors for 2018
On 5 March 2018, it held at Conference Room 2, 11/F., Chiwan Haiyun Building, Shenzhen, at which the following proposals were reviewed and approved unanimously:
1) “Internal Auditing Report of the Company for 2017”;
2) Internal Control and Audit Office's Auditing Report of the Company for 2017 No. 01-04”; 3) “Anti-fraud Risk Assessment Report for 2017”;
4) “Internal Auditing Plan of the Company for 2018”;
5) “Working Report of the Audit Committee of the Board in 2017”;
6) “The Financial Statements of 2017 of the Company” was reviewed and approved and was submitted to the Board of Directors of the Company for approval;
7) “The Work Report of Accounting Firm for 2017” was reviewed and approved and was submitted to the Board of Directors of the Company for approval;
8) “Proposal on the Employment of the Accounting Firm for 2018” was reviewed and approved. The Audit Committee continue employ Deloitte Touche Tohmatsu Certified Public Accountants LLP to shoulder the audit of the annual financial statements and the internal audit for 2018. This proposal was submitted to the Board of Directors of the Company for approval.
(2) The 2nd Meeting of the Audit Committee of the 9th Board of Directors for 2018
On 25 April 2018, it was held by communication voting at which the Internal Auditing Report of the Company for the First Quarter of 2018 was reviewed and approved unanimously.
(3) The 3rd Meeting of the Audit Committee of the 9th Board of Directors for 2018
On 29 August 2018, it was held at Conference Room 2, 11/F., Chiwan Haiyun Building, Shenzhen, at which the following Proposals were reviewed and approved unanimously:
1) “The Interim Financial Statements for 2018 of the Company” was reviewed and approved and was submitted to the Board of Directors of the Company for approval;
2) “Internal Auditing Report of the Company for the Second Quarter of 2018”
3) Internal Control and Audit Office's Auditing Report of the Company for 2018 No. 1
(4) The 4th Meeting of the Audit Committee of the 9th Board of Directors for 2018
On 29 October 2018, it was held by communication voting at which the following proposals were reviewed and approved unanimously:
1) “Internal Auditing Report of the Company for the Third Quarter of 2018”
2) Internal Control and Audit Office's Auditing Report of the Company for 2018 No. 2
(5) The 5th Meeting of the Audit Committee of the 9th Board of Directors for 2018
On 26 December 2018, it was held at Conference Room 25B, China Merchants Port Plaza, Shekou Industry Third Road, Shenzhen, at which the Audit Report on theCompany’s Finance and Internal Control by Deloitte Touche Tohmatsu Certified Public Accountants LLP for 2018 were debriefed
China Merchants Port Group Co., Ltd. Annual Report 2018 by the Committee members.
2. Performance of Duties to the Audit Work of Financial Statements of the Company
In accordance with relevant requirements of CSRC and Shenzhen Stock Exchange, the specific working rules and procedure for the Audit Committee, during the reporting period, the Audit Committee of the Board of the Company oversaw the audit work of Financial Statements of the Company for 2017 with due diligence, details of which are as follows:
(1) Before the auditors started their work, the Audit Committee discussed with the principal auditor of the accounting firm and determined, inter alia, the timing schedule for the auditing work of the financial statements for the year.
(2) The Audit Committee expressed its audit opinions two times on the financial statements of the Company for 2017.
During the reporting period, the Audit Committee expressed its audit opinions two times on the financial statements of the Company for 2017 in accordance with relevant requirements from CSRC.
The Audit Committee reviewed the Financial Statements prepared by the Company and issued the following opinions before the Auditors started their work: the Company was in full compliance with relevant laws, regulations and the Articles of Association of the Company, the units and items of the Company's financial statements to be consolidated were complete, and the consolidation basis thereof was accurate and the information included in the Financial Statements submitted by the Company was objective, comprehensive and true. The Company's accounting policies were properly adopted and the accounting estimates made were reasonable. No significant mistake or omission has been identified so far. Due to the time-lag between this review of Financial Statements and the dates of the Auditors' Report, we suggest the Finance Department focus on and deal with subsequent events properly in accordance with the New Enterprises Accounting Standards to ensure the fairness, truthfulness and completeness of the Financial Statements.
After the Auditors issued their preliminary audit opinions, the Audit Committee reviewed the Financial Statements again and issued the following opinions: the Company prepared the Financial Statement in full compliance with the New Enterprise Accounting Standards and relevant provisions of the financial control system of the Company, the procedures for the preparation of the Financial Statements were reasonable and proper, which gave a true and fair view of the Company's assets, liabilities, equity interests and operation results as at 31 December 2017. Information included in the Financial Statements was objective and complete. Financial Statements for 2017 which was preliminarily audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP may be submitted for review at the 3rd Meeting of the 9th Board of Directors.
(3) Supervision over the Auditing Work of the Accounting firm
During the Reporting Period, the Audit Committee issued letters to Deloitte Touche Tohmatsu Certified Public Accountants LLP to urge them to produce their audit recommendation on the financial statements and the summary statement of adjusting events in a timely manner to help our financial staff finish the preparation of financial statements and related notes for 2017 as soon as possible, so as to ensure the annual audit and information disclosure proceed as scheduled.
(4) Opinions on the Auditing Work Performed by the Accountants for the previous year
During the auditing period, the Audit Committee of the Board focused on the problems discovered in process of audit, urged auditors to finish the preparation of their report within a prescribed period
China Merchants Port Group Co., Ltd. Annual Report 2018 of time and ensured the truthfulness, accuracy and completeness of the annual report. The Certified Public Accountants issued a standard unqualified audit report on 5 March 2018. The Audit Committee considered that the Certified Public Accountants conducted the audit work of 2017 in accordance withChina’s Independent Auditing Standards, the audit time was sufficient, the deployment of the auditors was appropriate and their practicing capability was excellent, and that the audit report issued sufficiently reflected the Company's financial condition as at 31 December 2017 and its operation results and cash flows for the year 2017 and the audit conclusion made was in line with the actual situation of the Company.
3. Paying attention to the Internal Control and Internal Audit Work of the Company
During the reporting period, the Audit Committee made standards and requirements to the Audit Office's report submitted, fully understood the sound establish and implementation of internal control system, focused on problems and suggestions provided by the Audit Office. In addition, the Audit Committee advised on the improvement for the work of the Audit Department and the Company relating to internal control for the next year.
(II) Performance of the Nomination, Remuneration and Evaluation Committee
The members of Nomination, Remuneration and Evaluation Committee include independent director Yuan Yuhui (Convener), director Yan Shuai, and independent director Su Qiyun During the Reporting Period, the Nomination, Remuneration and Evaluation Committee earnestly performed their duties, investigated the candidate of the manager and the directors, and examined the remuneration of directors, supervisors and senior executives in term of the requirements and stipulations of CSRC, Articles of Association, Working Rules of the Nomination, Remuneration and Evaluation Committee and responsibilities and obligations empowered by the Board of Directors.
During the Reporting Period, the Nomination, Remuneration and Evaluation Committee under the Board of Directors held a total of three meetings, details of which are as follows:
1. On 5 March 2018, the 1st Meeting of the Nomination, Remuneration and Evaluation Committee of the 9th Board of Directors for 2018 was held at Conference Room 2, 11/F., Chiwan Haiyun Building, Shenzhen, at which the following proposals were reviewed and approved unanimously: (1) “The Working Report of the Nomination, Remuneration and Evaluation Committee of the Board for 2017”;
(2) “The Report on the Remuneration of the Directors, Supervisors and Senior Management Staff for 2017”.
2. On 27 November 2018, the 2nd Meeting of the Nomination, Remuneration and Evaluation Committee of the 9th Board of Directors for 2018 was held by communication voting at which the Proposal on Examining Director Candidates was reviewed and approved unanimously. Upon review by the Board, these director candidates would be elected at a meeting of shareholders.
3. On 13 December 2018, the 3rd Meeting of the Nomination, Remuneration and Evaluation Committee of the 9th Board of Directors for 2018 was held at Conference Room 24D, China Merchants Port Plaza, Shekou Industry Third Road, Shenzhen, at which the following Proposals were reviewed and approved unanimously and was submitted to the Board for review.
(1) “The Proposal on Hiring CEO, COO, and General Manager of the Company”;
(2) “The Proposal on Hiring Deputy General Manager of the Company”;
(3) “The Proposal on Hiring CFO of the Company”;
China Merchants Port Group Co., Ltd. Annual Report 2018 (4) “The Proposal on Hiring Board Secretary”.
(III) Performance of the Strategy Committee
The members of Strategy Committee include vice Chairman of the Board Deng Renjie (Convener), director and CEO Bai Jingtao, director Song Dexing, independent director Yuan Yuhui, and independent director Li Changqing. During the Reporting Period, members of the Strategy Committee in line with the requirements of CSRC, Article of Association, and the stipulation of Working Rules of the Strategy Committee earnestly performed their duties, conducted research and advised on the investment plans and assets operation projects related to the medium to long term development strategy of the Company.
During the Reporting Period, the Strategy Committee under the Board of Directors held a total of four meetings, details of which are as follows:
1. On 26 January 2018, the 1st Meeting of the Strategy Committee of the 9th Board of Directors for 2018 was held by communication voting at which the Proposal on Capital Increase to Zhoushan Archipelago New Area SinoTrans& CSC RoRo Logistics Co., Ltd. was reviewed and approved unanimously and was submitted to the Board for review.
2. On 5 March 2018, the 2nd Meeting of the Strategy Committee of the 9th Board of Directors for 2018 was held at Conference Room 1, 11/F, Chiwan Haiyun Building, Shenzhen, at which the Proposal on 2017 Performance Report of Strategy Committee of the Board of Directors and Five-year Business Development Planning from 2018-2022 were reviewed and approved unanimously.
1. On 30 November 2018, the 3rd Meeting of the Strategy Committee of the 9th Board of Directors for 2018 was held by communication voting at which the Proposal on Joint Investment and Establishment of China Merchants Hainan Development Investment Co., Ltd was reviewed and approved unanimously and was submitted to the Board for review.
4. On 13 December 2018, the 4th Meeting of the Strategy Committee of the 9th Board of Directors for 2018 was held at Conference Room 24D, China Merchants Port Plaza, Shekou Industry Third Road, Shenzhen, at which the Proposal on Election of Convener for the Strategy Committee under the 9th Board of Directors was reviewed and approved unanimously and was submitted to the Board for review.
VII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in the Reporting Period.
□ Yes√ No
The Supervisory Committee raised no objections in the Reporting Period.
VIII Appraisal of and Incentive for Senior Management
The Company has a mature assessment mechanism and system covering all senior management personnel. The annual comprehensive assessment combines qualitative and quantitative methods with the dimensions including performance, competence, self-discipline, etc. The assessment results of senior management serve as an important basis for appointment and motivation. The Company adjusts and determines the post salary of senior managers based on the factors including operation status, position served and assessment results, and determines the performance bonus of managers
China Merchants Port Group Co., Ltd. Annual Report 2018 through the factors including annual comprehensive ability assessment, annual key performance indicators appraisal and three-year strategic appraisal results.
IX Internal Control
1. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes√ No
2. Internal Control Self-Evaluation Report
||||||
|-|-|-|-|-|
|Disclosure date of the internal|||||
||30 March 2019||||
|control self-evaluation report|||||
|Index to the disclosed internal|||||
||For details, see www.cninfo.com.cn||||
|control self-evaluation report|||||
|Evaluated entities’ combined|||||
|assets as % of consolidated total|98%||||
|assets|||||
|Evaluated entities’ combined|||||
|operating revenue as % of|94%||||
|consolidated operating revenue|||||
|Identification standards for internal control weaknesses|||||
||Weaknesses in internal||||
|||Weaknesses in internal control not related to|||
|Type|control over financial||||
|||financial reporting|||
||reporting||||
||If a defect or defect group||Significant||
|||Great defect||Common defect|
||||defect||
||give rise to the following||||
|||Development|Development|Development|
||events which cannot be||||
|||direction|direction partly|direction|
||prevented or found and||||
|||substantially|deviates from|slightly deviates|
||made rectification, the|deviates from|the strategic|from the|
||defect or defect group are|the strategic|goals,|strategic goals,|
|||goals,|investment|investment|
||recognized as significant||||
|||investment|direction, and|direction, and|
||defects:||||
|||direction, and|business|business|
||(1) Malpractices of|business|structure,|structure,|
||directors, supervisors and|structure,|commercial|commercial|
|||commercial|modeled. which|m odeled. which|
||senior management:||||
|||modeled. which|unable to|completely can't|
|Nature standard|(2) The Company make||||
|||completely|support the|fully support|
||correction to the financial|unable to|realization of|the realization|
||report issued;|support the|strategic goals|of strategic|
|||realization of|at a larger|goals|
||(3) Certified Public||||
|||strategic goals|extent||
||Accountant find that there||||
|||Strategy|Strategy|Strategy|
||is a significant error in the||||
|||implementation|implementation|implementation|
||financial report, however,||||
|||is blocked,|is blocked, most|is blocked, part|
||the internal control did not||||
|||almost all|of indicators of|of indicators of|
||discover it when||||
|||indicators of|strategy|strategy|
||conducting internal control;||||
|||strategy|implementation|implementation|
||(4) The Audit Committee||||
|||implementation|cannot|cannot|
||under the Board and||||
|||cannot|completed as|completed as|

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||
|-|-|-|-|
|Internal Audit Service's|completed as|planned|planned|
|supervision to the internal|planned|||
|control is invalid.|Lead to break|Lead to break|Some daily|
||off of common|off of common|business is|
||business/service|business/service|influenced, lead|
||or it takes half|or it takes three|to break off of|
||year or above to|months or half|common|
||recover the|year below to|business/service|
||break off of|recover the|or it takes three|
||common|break off of|months below|
||business/service|common|to recover the|
|||business/service|break off of|
||||common|
||||business/service|
||Badly damage|In a large|damage the|
||the working|extent, damage|working|
||enthusiasm of|the working|enthusiasm of|
||all the|enthusiasm of|all the|
||employees, will|all the|employees,|
||give rise to|employees,|reduce work|
||large scale|reduce work|efficiency, have|
||group events or|efficiency, have|some adverse|
||heavy damage|greatly adverse|effect to|
||to enterprises|effect to|enterprises|
||culture and|enterprises|culture and|
||enterprises|culture and|enterprises|
||cohesion|enterprises|cohesion|
|||cohesion||
||The employee's|The employee's|The employee's|
||ability and|ability and|ability and|
||professional|professional|professional|
||skills|skills in some|skills in some|
||universally|significant|fields cannot|
||cannot meet the|fields cannot|m eet the|
||enterprise|meet the|enterprise|
||development|enterprise|development|
||needs by a large|development||
||margin|needs||
||Negative news|Negative news|Negative news|
||spread in the|spread in the|spread in the|
||field of the|field of the|field of the|
||entire business|entire business,|entire business,|
||(including|or was paid|have small|
||extending to|attention or|damage to the|
||industry|reported by the|reputation of|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||||
|-|-|-|-|-|
|||chain),or was|local media the|the enterprise,|
|||paid attention|recovery of|the recovery of|
|||by the national|reputation will|reputation will|
|||media or public|take three to six|take three|
|||media, the|months|months below|
|||recovery of|||
|||reputation will|||
|||take more than|||
|||six months|||
|||The enterprise's|The enterprise's|The enterprise's|
|||internal|internal|internal|
|||confidential|confidential|confidential|
|||information|information|information|
|||leakage which|leakage which|leakage which|
|||badly affect the|affect the|affect the|
|||enterprise's|enterprise's|enterprise's|
|||competitive|competitive|competitive|
|||capacity in the|capacity in the|capacity in the|
|||market, or|market, or|market, or|
|||affect the|affect the|affect the|
|||competitive|competitive|competitive|
|||capacity in|capacity in|capacity in|
|||management|management in|management in|
||||a large extent|a general|
|||||extent|
|||The judging standard was the net profits|||
|||attributable to the parent Company's shareholders|||
||The judging standard was||||
|||in the consolidated financial statements audited in|||
||the net profits attributable||||
|||last year.|||
||to the parent Company's||||
||||Significant||
||shareholders in the|Great defect||Common defect|
||||defect||
||consolidated financial||||
|||Have a|Have a greater|Have an|
||statements audited in last||||
|||significant|adverse impact|adverse impact|
||year. Misstatement amount||||
|||adverse impact|on the asset|on the asset|
||≥ 5% above of judging||||
|Quantitative standard||on the asset|turnover ability,|turnover ability,|
||standard was great defect;||||
|||turnover ability,|which lead to|which lead to|
||5% judging standard ＞1%||||
|||which lead to|total asset|total asset|
||misstatement amount was||||
|||total asset|turnover rate|turnover rate|
||significant defect;||||
|||turnover rate|lowed10% to|lowed10%|
||misstatement amount ＜||||
|||lowed 20%|20% (Including|below|
||1% below of judging||||
|||above|10%）||
||standard was general||||
|||(Including|||
||standard.||||
|||20％）|||
|||Had significant|Had larger|Had adverse|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|adverse impact|a dverse impact|impact to the|
|to the annual|to the annual|annual|
|operation|operation|operation|
|profits or cause|profits or cause|profits or cause|
|decrease of|decrease of|decrease of|
|annual|annual|annual|
|operation|operation|operation|
|profits when at|profits when at|profits when at|
|5% (including|1% (including|1% below of|
|5%) above of|1%) to 5%|judging|
|judging|judging|standard|
|standard|standard||
|Had significant|Had larger|Had adverse|
|adverse impact|adverse impact|impact to|
|to decrease of|to decrease of|decrease of|
|inflow of total|inflow of total|inflow of total|
|cash flow or|c ash flow or|c ash flow or|
|increase of|increase of|increase of|
|outflow total|outflow total|outflow total|
|cash flow when|cash flow when|cash flow when|
|at 10%|at 5%|at 5% below of|
|(including 10%)|(including 5%)|judging|
|above of|to 10% above of|standard|
|judging|judging||
|standard|standard||
|Great|Larger|Great|
|investment|investment|investment|
|mistake|mistake|mistake|
|incurred which|incurred which|incurred which|
|cause direct|cause direct|cause direct|
|economy losses|economy losses|economy losses|
|when at 5%|when at 1%|when at 1%|
|(including 5%)|(including|below of|
|above of|1%)to 5% of|judging|
|judging|judging|standard or the|
|standard or the|standard or the|return on|
|return on|return on|investment less|
|investment|investment less|than 30% lower|
|more than 40%|than|than expected|
|lower than|30%(including||
|expected|30% to 40%)||
||lower than||
||expected||
|10 death or|3 deaths above|less than 3|
|above , or 50|to 10 deaths|deaths or|
|people serious|below , or more|above , or less|

China Merchants Port Group Co., Ltd. Annual Report 2018
||||
|-|-|-|
|injury, or direct|than 10 people|than 10 people|
|economy losses|but less than 50|serious injury,|
|when at 5%|people serious|or direct|
|(including 5%)|injury, or direct|economy losses|
|above of|economy losses|when at 1%|
|judging|when at 1%|below of|
|standard|(including 1%)|judging|
||to 5% of|standard|
||judging||
||standard||
|Asset integrity|Asset integrity|Asset integrity|
|cannot be|cannot be|cannot be|
|ensured, when|ensured, when|ensured, when|
|assets losses at|assets losses at|a ssets losses at|
|5% (including|1% (including|1% below of|
|5%) above of|1%)to 5% of|judging|
|judging|judging|standard|
|standard|standard||
|A large number|Several|Irreconcilable|
|of great|commercial|commercial|
|commercial|disputes, civil|disputes, civil|
|disputes, civil|lawsuits, and|lawsuits|
|lawsuits and|had obviously|happened|
|negative|influence in a|sometimes,|
|influences can't|certain area and|cause a certain|
|eliminate in a|period, may pay|influences in|
|short period of|compensation at|local, may pay|
|time, may pay|1% (including|compensation|
|compensation at|1%) to 5% of|at 1% below of|
|5% (including|judging|judging|
|5%) above of|standard|standard|
|judging|||
|standard|||
|A serious|A serious|Violation of|
|violation of|violation of|laws and|
|laws and|laws and|regulations,|
|regulations,|regulations,|investigated by|
|investigated by|i nvestigated by|g overnment|
|government|government|department and|
|department and|department and|legal|
|legal|legal|department,|
|department,|department,|may pay|
|cause|may pay|compensation|
|prosecution and|compensation|at 0.5% below|
|class action,|at 0.5%|of judging|
|may pay|(including|standard|

China Merchants Port Group Co., Ltd. Annual Report 2018
|||||
|-|-|-|-|
|||compensation|0.5%) to 2% of|
|||at 2%|judging|
|||(including 2%)|standard|
|||above of||
|||judging||
|||standard||
|Number of material weaknesses||||
|in internal control over financial|0|||
|reporting||||
|Number of material weaknesses||||
|in internal control not related to|0|||
|financial reporting||||
|Number of serious weaknesses||||
|in internal control over financial|0|||
|reporting||||
|Number of serious weaknesses||||
|in internal control not related to|0|||
|financial reporting||||

Notes: The Company acquired the actual control over CM Port (Zhoushan) RoRo Logistics Co., Ltd. and its subsidiaries in August 2018 and over China Merchants Port Holdings Company Ltd. and its subsidiaries in December 2018. The aforementioned companies (hereinafter referred to as “the acquirees”) are all included in the consolidated financial statements for 2018. The Company does not include the acquirees into the range of internal control evaluation pursuant to the relevant waiver provisions in the Answers to Questions Regarding the Regulation of the Implementation of Corporate Internal Control Standardization System of Listed Companies (Issue 1, 2011, General Issue 1) issued by China Securities Regulatory Commission.
The financial data of the acquires was deducted for the percentage of evaluatedentities’ total assets and operating revenue to the total assets and operating revenue in consolidated financial statements X IndependentAuditor’s Report on Internal Control
√ Applicable□ Not applicable
|||
|-|-|
|Opinion paragraph in the independent auditor’s report on internal control||
|We believe that China Merchants Port Group Co., Ltd. has maintained effective internal control over financial||
|reporting in all material respects as of 31 December 2018 as per the Basic Rules for Enterprise Internal Control||
|and relevant regulations.||
|Independent auditor’s report||
|on internal control disclosed|Disclosed|
|or not||
|Disclosure date|30 March 2019|
|Index to such report disclosed|For details, see www.cninfo.com.cn|
|Type of the auditor’s opinion|Unmodified unqualified opinion|
|Material weaknesses in||
|internal control not related to|None|
|financial reporting||

Indicate by tick mark whether any modified opinion is expressed in the independentauditor’s report
China Merchants Port Group Co., Ltd. Annual Report 2018 on theCompany’s internal control.
□ Yes√ No
Indicate by tick mark whether the independentauditor’s report on theCompany’s internal control is consistent with the internal control self-evaluation report issued by theCompany’s Board.
√ Yes□ No
China Merchants Port Group Co., Ltd. Annual Report 2018 Part X Corporate Bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding before the date of thisReport’s approval or were due but could not be redeemed in full? No.
China Merchants Port Group Co., Ltd. Annual Report 2018 Section XI.Auditor’s Report (See attached)
|||
|-|-|
|Type of audit opinion|Standard and unqualified auditor's report|
|Date of signing audit report|29 March 2019|
|Audit agency|Deloitte Touche Tohmatsu Certified Public Accountants LLP|
|No. of audit report|De Shi Bao (Shen) Zi (19) No. P01937|
|Name of CPA|Huang Yue, Jiang Qishen|

China Merchants Port Group Co., Ltd. Annual Report 2018 Section XII. Documents Available for Reference
I. Financial Statements carrying the signatures and stamps of the Company Principal, the Chief Financial Officer and the person in charge of accounting firm;
II. Original copy of the Auditor's Report stamped by the accounting firm and signed and stamped by registered accountants;
III. Original copies of all documents and the announcements thereof disclosed in the reporting period on “Securities Times” and “Ta Kung Pao”;
For and on behalf of the Board
Bai Jingtao
Legal representative of
China Merchants Port Group Co., Ltd. Dated 30 March 2019
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN
WHARF HOLDINGS LIMITED")
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2018
CONTENTS Pages
AUDITOR'S REPORT 1 - 6
THE CONSOLIDATED AND COMPANY BALANCE SHEETS 7 - 10
THE CONSOLIDATED AND COMPANY INCOME STATEMENTS 11 - 13
THE CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS 14 - 15
THE CONSOLIDATED AND COMPANY STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY 16 - 19
NOTES TO THE FINANCIAL STATEMENTS 20 - 153
AUDITOR'S REPORT
De Shi Bao (Shen) Zi (19) No. P01937 (Page 1, 6 pages) To the Shareholders of China Merchants Port Group Co., Ltd.:
I. Audit Opinion
We have audited the accompanying financial statements of China Merchants Port Group Co., Ltd. (formerly known as "Shenzhen Chiwan Wharf Holdings Limited", hereinafter referred to as "the Company"), which comprise the consolidated and company balance sheets as at 31 December 2018, and the consolidated and company income statements, the consolidated and company cash flow statements and the consolidated and company statements of changes in shareholders' equity for the year then ended, and the notes to the financial statements.
In our opinion, the accompanying financial statements of the Company present fairly, in all material respects, the consolidated and company's financial position as of 31 December 2018, the consolidated and company's results of operations and cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises.
II. Basis for Opinion
We conducted our audit in accordance with the Auditing Standards for the Chinese Certified Public Accountants. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with the Auditing Standards for the Chinese Certified Public Accountants, and we have fulfilled our other ethical responsibilities in accordance with the standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We determine the followings are key audit matters that need to be addressed in our report.
1. Subsequent measurement of long-term equity investment in associates and joint ventures As disclosed in Notes (V) 9 to the consolidated financial statements, the Company has made equity investment in several enterprises, over which the Company exercises joint control or has significant influence. In 2018, the Company's income from investment in associates/joint ventures under equity method amounts to RMB 3,913,864,538.60. As at 31 December 2018, the carrying amount of long-term equity investment of the Company in associates/joint ventures amounts to RMB
50,176,577,263.40. Since the investment income from long-term equity investment in associates/joint ventures is significant, with its accuracy depending on the investee's financial status and operation results, we identified the aforesaid subsequent measurement of long-term equity investment in
associates/joint ventures as a key audit matter of the consolidated financial statements.
AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (19) No. P01937 (Page 2, 6 pages) III. Key Audit Matters - continued
1. Subsequent measurement of long-term equity investment in associates and joint ventures - continued
Principal audit procedures we performed for key audit matters are as follows:
(1) Understood the major associates/joint ventures and their environment, and identified whether the major associates/joint ventures were significant components in terms of financial importance and business nature;
(2) Understood the certified public accountants of major associates/joint ventures and evaluated their independence and professional competence;
(3) Identified and assessed the risk of material misstatement in the financial statements of the major associates/joint ventures from the perspective of auditing the consolidated financial statements of the Company by reading the financial statements of the major associates/joint ventures and discussing with the management the financial performance of the major associates/joint ventures and the significant judgments and estimates made in the preparation of the financial statements; (4) Discussed with the component certified public accountants of the major associates/joint ventures their assessment of the component audit risk, the identification of key audit areas and the implementation of the corresponding audit procedures to evaluate whether the audit of the component certified public accountants was appropriate;
(5) Evaluated whether the audit evidence obtained by the component certified public accountants was sufficient and appropriate by reviewing the audit documents of the component certified public accountants of the major associates/joint ventures when we deemed necessary.
(6) Verified whether the accounting policies and accounting periods adopted by the associates/joint ventures were consistent with the Company's. If not, checked whether the financial statements of the associates/joint ventures have been adjusted according to the accounting policies and accounting period of the Company, and recognized the amount of investment income under equity method on that basis.
AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (19) No. P01937 (Page 3, 6 pages) III. Key Audit Matters - continued
2. Accounting treatment of business combinations involving enterprises not under common control
As disclosed in Notes (VI) 1 to the consolidated financial statements, on 23 February 2018, the Company acquired90% of the shares of TCPParticipações SA (hereinafter referred to as "TCP") at a price of BRL 2,811,941,923.95 (equivalent to RMB 5,468,066,151.65), and the consideration paid in excess of the fair value of identifiable net assets of TCP on the acquisition date equivalent to RMB 3,969,374,954.86 was recognized as goodwill. Since the business combinations not involving enterprises under common control involves significant judgments and estimates in determining the fair value of identifiable net assets on the acquisition date, the calculation of goodwill, etc., we identified the accounting treatment of the business combinations involving enterprises not under common control as a key audit matter of the consolidated financial statements.
Principal audit procedures we performed for key audit matters are as follows:
(1) Evaluated the independence, objectiveness and professional competence of the third-party evaluation organization hired by the management through interviews and quriers;
(2) Based on our understanding of the industry and business, judged whether the management's methods and assumptions used in assessing the fair value of the identifiable net assets at the acquisition date were reasonable; compared the gross profit margin of forecast period and the historical gross profit margin, the income growth rate of forecast period and the historical income growth rate, and the development planning of TCP, etc. to evaluate the reasonableness of forecasted financial data and its evaluation results.
(3) Utilized the work of internal evaluation experts to assess the rationality of evaluation methods and key assumptions used by third-party evaluation organization in the assessment of the fair value of identifiable net assets at the acquisition date, the rationality of the discount rate used, and the accuracy of calculation of the net present value of expected future cash flows.
3. Goodwill impairment
As disclosed in Notes (V) 16 to the consolidated financial statements, as at 31 December 2018, the goodwill in the consolidated financial statements of the Company was RMB 8,335,895,842.35. The management of the Company used the present value of the estimated future cash flows to determine the recoverable amount of the relevant asset group when testing the goodwill for impairment, and the forecast of future cash flows included key assumptions, such as income growth rate, gross profit margin, discount rate, etc. We identified the goodwill impairment as a key audit matter of the consolidated financial statements due to the significant amount of goodwill and that the management needs to make significant judgments and estimates when conducting goodwill impairment testing.
AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (19) No. P01937 (Page 4, 6 pages) III. Key Audit Matters - continued
3. Goodwill impairment - continued
Principal audit procedures we performed for key audit matters are as follows:
(1) Tested the operation effectiveness of internal controls related to goodwill impairment;
(2) Referred to industry practice to assess whether the management's approach in cash flows forecast is appropriate and whether the assumptions used are reasonable;
(3) Compared the data used in cash flow forecast with historical data and budget data approved by the management, and assessed the reasonableness of the data used;
(4) Compared the growth rate of the business volume in the forecast period with the growth rate of the historical business volume and evaluated its appropriateness.
(5) Compared the gross profit margin of the forecast period with the actual gross profit margin of previous years to assess its appropriateness in combination with the business plan and industry development trend;
(6) Understood the basis for management to determine the growth rate of the business in the subsequent forecast period and assessed its appropriateness;
(7) Assessed the appropriateness of the discount rate adopted by the management in combination with market risk-free interest rates, risk factors, etc.;
(8) Reviewed whether the calculation of the present value of future cash flows was correct. IV. Other Information
The Company is responsible for the other information. The other information comprises the information included in the annual report, but does not include the consolidated financial statements and our auditor's report.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion.
In combination with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the audit work performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (19) No. P01937 (Page 5, 6 pages) V. Responsibilities of the Management and Those Charged with Governance for the Financial Statements
The Company is responsible for the preparation of the financial statements that give a true and fair view in accordance with Accounting Standards for Business Enterprises, and for the design, performance and maintenance of such internal control that is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the management is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.
These charged with governance are responsible for overseeing the Company's financial reporting process.
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes an audit opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Auditing Standards for the Chinese Certified Public Accountants will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could expected influence the economic decisions taken based on these financial statements by reasonable users.
As part of an audit in accordance with Auditing Standards for the Chinese Certified Public
Accountants, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
(1) Identified and assessed the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that was sufficient and appropriate to form our opinion. The risk of not detecting a material misstatement resulting from fraud was higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
(2) Understood audit related internal control in order to design audit procedures that were appropriate in the circumstances.
(3) Evaluated the appropriateness of accounting policies applied and the reasonableness of accounting estimates and related disclosures made by the management.
AUDITOR'S REPORT - continued
De Shi Bao (Shen) Zi (19) No. P01937 (Page 6, 6 pages) VI. Auditor's Responsibilities for the Audit of the Financial Statements - continued
(4) Concluded on the appropriateness of the directors' application of the going concern basis of accounting. Based on audit evidence obtained, concluded on whether the material uncertainty of events or conditions that may cause cast significant doubt on the Company's ability to continue as a going concern existed. If we concluded that a material uncertainty existed, we were required to draw attention in our auditor's report to the related disclosures in the financial statements or to modify our opinion, if such disclosures were inadequate. Our conclusions were based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluated the overall presentation, structure and content of the financial statements (including the disclosures), and whether the financial statements represented the underlying transactions and events in a manner that achieved fair presentation.
(6) Obtained sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the financial statements. We were responsible for the direction, supervision and performance of the group audit. We remained solely responsible for our audit opinion.
We communicated with those charged with governance over audit scope, time arrangement and significant audit findings, including any significant deficiencies of internal control that we identified through audit.
We also provided the those charged with governance with a statement that we had complied with relevant ethical requirements of independence, and communicated with those charged with governance over all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of the financial statements of the current period and were therefore the key audit matters. We described these matters in our auditor's report unless law or regulation precluded public disclosure about the matter or when, in extremely rare circumstances, we determined that a matter should not be addressed in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Deloitte Touche Tohmatsu CPA LLP Chinese Certified Public Accountant (Engagement Partner)
Shanghai, China
Huang Yue
Chinese Certified Public Accountant Jiang Qishen
29 March 2019
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Consolidated Balance Sheet
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Notes|31/12/2018|01/01/2018 (restated)|31/12/2017 (restated)|
|Current assets:|||||
|Cash and bank balances|(V)1|7,070,308,704.75|7,729,460,082.75|7,729,460,082.75|
|Notes and accounts|(V)2|1,120,839,172.51|909,326,662.63|871,370,660.21|
|receivable|||||
|Prepayments|(V)3|124,404,862.87|71,668,202.51|71,668,202.51|
|Other receivables|(V)4|799,559,226.45|938,579,424.96|938,786,831.94|
|Inventories|(V)5|108,567,270.02|82,789,282.22|82,789,282.22|
|Assets held for sale|(V)6|115,356,162.94|-|-|
|Other current assets|(V)7|1,195,421,189.12|1,199,446,613.69|1,200,476,091.74|
|Total current assets||10,534,456,588.66|10,931,270,268.76|10,894,551,151.37|
|Non-current Assets:|||||
|Available-for-sale financial||||3,083,581,935.68|
|assets|||||
|Long-term receivables|(V)8|793,046,240.11|9,659,365.32|9,669,034.35|
|Long-term equity|(V)9|50,176,577,263.40|43,160,849,807.48|43,160,849,807.48|
|investments|||||
|Other investments in equity|(V)10|247,848,314.30|233,483,968.79||
|instruments|||||
|Other non-current financial|(V)11|2,087,872,081.94|2,982,466,950.23||
|assets|||||
|Investment properties|(V)12|5,890,146,989.51|6,060,625,982.13|6,060,625,982.13|
|Fixed assets|(V)13|22,994,190,880.43|23,167,393,454.86|23,167,393,454.86|
|Construction in progress|(V)14|5,499,426,090.06|2,308,007,330.50|2,308,007,330.50|
|Intangible assets|(V)15|20,761,018,044.54|15,873,713,338.91|15,873,713,338.91|
|Goodwill|(V)16|8,335,895,842.35|4,051,665,903.24|4,051,665,903.24|
|Long-term prepaid expenses|(V)17|235,706,437.21|254,930,584.77|254,930,584.77|
|Deferred tax assets|(V)18|66,708,157.19|42,425,905.07|42,425,905.07|
|Other non-current assets|(V)19|395,191,485.98|227,749,831.65|227,749,831.65|
|Total non-current assets||117,483,627,827.02|98,372,972,422.95|98,240,613,108.64|
|TOTAL ASSETS||128,018,084,415.68|109,304,242,691.71|109,135,164,260.01|

 The accompanying notes form part of the financial statements.
The financial statements on pages 7 to 153 were signed by the following:
Bai Jingtao Wen Ling Sun Ligan
Legal Representative Chief Financial Officer Head of Accounting Department
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Consolidated Balance Sheet - continued
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Notes|31/12/2018|01/01/2018 (restated)|31/12/2017 (restated)|
|Current liabilities:|||||
|Short-term borrowings|(V)20|3,425,291,312.62|2,580,000,000.00|2,580,000,000.00|
|Notes and accounts payable|(V)21|429,120,690.97|331,606,335.81|331,606,335.81|
|Receipts in advance|(V)22|29,170,709.86|31,959,751.17|106,944,420.75|
|Contract liabilities|(V)23|49,993,895.50|43,926,190.25||
|Employee benefits payable|(V)24|433,489,555.40|379,770,098.40|379,770,098.40|
|Taxes payable|(V)25|345,183,422.42|258,555,167.79|258,555,167.79|
|Other payables|(V)26|2,245,670,528.89|6,570,561,586.96|6,544,589,530.18|
|Non-current liabilities due|(V)27|2,349,849,449.96|2,393,237,748.47|2,393,237,748.47|
|within one year|||||
|Other current liabilities|(V)28|602,659,721.80|385,472,328.45|385,472,328.45|
|Total current liabilities||9,910,429,287.42|12,975,089,207.30|12,980,175,629.85|
|Non-current Liabilities:|||||
|Long-term borrowings|(V)29|6,971,479,842.18|7,670,516,491.15|7,670,516,491.15|
|Bonds payable|(V)30|22,097,467,096.40|10,591,709,808.16|10,591,709,808.16|
|Long-term payables|(V)31|1,294,190,118.18|1,290,782,441.94|1,290,782,441.94|
|Projected benefits obligation|(V)32|375,325,127.65|350,750,123.90|350,750,123.90|
|Provisions|(V)33|34,951,392.27|50,577,924.97|-|
|Deferred income|(V)34|228,658,214.64|186,491,676.05|222,857,800.33|
|Deferred tax liabilities|(V)18|2,911,074,941.27|2,015,175,104.46|1,984,303,944.46|
|Other non-current liabilities|(V)35|3,777,582,522.86|83,594,525.96|54,763,901.68|
|Total non-current liabilities||37,690,729,255.45|22,239,598,096.59|22,165,684,511.62|
|TOTAL LIABILITIES||47,601,158,542.87|35,214,687,303.89|35,145,860,141.47|
|SHAREHOLDERS'|||||
|EQUITY:|||||
|Share capital|(V)36|1,793,412,378.00|644,763,730.00|644,763,730.00|
|Capital reserve|(V)37|19,426,912,957.05|18,845,899,356.20|18,845,899,356.20|
|Other comprehensive|(V)38|88,925,978.57|(729,621,208.40)|(7,064,646.43)|
|income|||||
|Special reserve|(V)39|8,231,080.43|4,767,373.45|4,767,373.45|
|Surplus reserve|(V)40|527,175,908.67|520,074,434.56|520,074,434.56|
|Unappropriated profit|(V)41|8,915,817,110.21|9,282,631,255.64|8,466,307,917.47|
|Total shareholders' equity||30,760,475,412.93|28,568,514,941.45|28,474,748,165.25|
|attributable to equity holders of|||||
|the parent|||||
|Minority interests||49,656,450,459.88|45,521,040,446.37|45,514,555,953.29|
|TOTAL SHAREHOLDERS'||80,416,925,872.81|74,089,555,387.82|73,989,304,118.54|
|EQUITY|||||
|TOTAL LIABILITIES AND||128,018,084,415.68|109,304,242,691.71|109,135,164,260.01|
|SHAREHOLDERS'|||||
|EQUITY|||||

The accompanying notes form part of the financial statements.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Balance Sheet of the Company
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Notes|31/12/2018|01/01/2018 (restated)|31/12/2017|
|Current Assets:|||||
|Cash and bank balances||389,841,854.93|230,039,345.73|230,039,345.73|
|Notes and accounts|(XIV)1|23,444,175.65|12,987,394.84|12,987,394.84|
|receivable|||||
|Other receivables|(XIV)2|651,050,233.08|1,172,569,336.18|1,172,569,336.18|
|Inventories||165,553.46|415,163.18|415,163.18|
|Other current assets||1,563,111.61|2,210,653.66|2,210,653.66|
|Total current assets||1,066,064,928.73|1,418,221,893.59|1,418,221,893.59|
|Non-current Assets:|||||
|Available-for-sale||||23,759,200.00|
|financial assets|||||
|Long-term receivables||11,004,284.75|11,004,284.75|11,004,284.75|
|Long-term equity|(XIV)3|28,544,261,576.96|2,215,952,842.62|2,215,952,842.62|
|investments|||||
|Other investments in||151,746,700.00|147,243,840.00||
|equity instruments|||||
|Investment properties||12,685,959.06|13,116,783.72|13,116,783.72|
|Fixed assets||190,804,655.63|204,839,343.34|204,839,343.34|
|Construction in progress||2,500,843.87|10,631,762.77|10,631,762.77|
|Intangible assets||57,755,603.44|59,954,618.20|59,954,618.20|
|Long-term prepaid||3,785,801.32|3,976,969.45|3,976,969.45|
|expenses|||||
|Total non-current assets||28,974,545,425.03|2,666,720,444.85|2,543,235,804.85|
|TOTAL ASSETS||30,040,610,353.76|4,084,942,338.44|3,961,457,698.44|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Balance Sheet of the Company - continued
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Notes|31/12/2018|01/01/2018 (restated)|31/12/2017|
|Current Liabilities:|||||
|Short-term borrowings||377,716,000.00|-|-|
|Notes and accounts payable||13,125,624.29|18,376,556.53|18,376,556.53|
|Receipts in advance||-|-|98,400.00|
|Contract liabilities||92,003.00|98,400.00||
|Employee benefits payable||26,605,190.52|51,689,614.60|51,689,614.60|
|Taxes payable||18,826,587.50|1,578,674.01|1,578,674.01|
|Other payables||717,536,924.18|880,542,349.29|880,542,349.29|
|Non-current liabilities due||299,531,506.81|-|-|
|within one year|||||
|Other current liabilities||200,000,000.00|100,000,000.00|100,000,000.00|
|Total current liabilities||1,653,433,836.30|1,052,285,594.43|1,052,285,594.43|
|Non-current Liabilities:|||||
|Bonds payable||-|298,931,506.83|298,931,506.83|
|Long-term payables||151,710,000.00|150,098,000.00|150,098,000.00|
|Deferred tax liabilities||34,179,375.00|33,053,660.00|2,182,500.00|
|Total non-current liabilities||185,889,375.00|482,083,166.83|451,212,006.83|
|TOTAL LIABILITIES||1,839,323,211.30|1,534,368,761.26|1,503,497,601.26|
|SHAREHOLDERS'|||||
|EQUITY|||||
|Share capital||1,793,412,378.00|644,763,730.00|644,763,730.00|
|Capital reserve||25,517,647,180.04|240,001,254.59|240,001,254.59|
|Other comprehensive income||102,638,125.00|99,260,980.00|6,647,500.00|
|Special reserve||470,465.59|-|-|
|Surplus reserve||527,175,908.67|520,074,434.56|520,074,434.56|
|Unappropriated profit||259,943,085.16|1,046,473,178.03|1,046,473,178.03|
|TOTAL SHAREHOLDERS'||28,201,287,142.46|2,550,573,577.18|2,457,960,097.18|
|EQUITY|||||
|TOTAL LIABILITIES AND||30,040,610,353.76|4,084,942,338.44|3,961,457,698.44|
|SHAREHOLDERS'|||||
|EQUITY|||||

The accompanying notes form part of the financial statements.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Consolidated Income Statement
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Notes||Amount incurred in||Amount incurred in the|
|||||the current period||previous period (restated)|
||I. Operating income|(V)42|9,703,394,622.58||7,544,635,284.96||
||Less: Operating costs|(V)42|5,739,241,395.87||4,710,312,660.51||
||Business taxes and levies|(V)43|235,953,803.51||71,984,283.55||
||Administrative expenses|(V)44|1,251,865,675.45||853,900,889.90||
||Research and development expenses||121,989,097.82||95,247,274.67||
||Financial expenses|(V)45|1,643,418,102.95||955,406,648.46||
||Including: Interest expense||1,634,101,331.80||1,129,672,527.80||
||Investment income||272,453,293.86||116,797,403.30||
||Impairment losses of assets|(V)46|-||632,741,768.60||
||Impairment losses of credit|(V)47|7,528,580.60||||
||Add: Other income|(V)48|56,180,127.64||44,158,463.01||
||Investment income|(V)49|3,967,828,149.48||5,771,294,706.67||
||Including: Income from investments in|(V)49|3,913,864,538.60||4,681,582,632.76||
||associates and joint ventures||||||
||Gains (losses) from changes in fair value|(V)50|(1,074,406,837.68)||-||
||Gains (losses) on disposal of assets|(V)51|19,258,495.33||(391,053.09)||
||II. Operating profit||3,672,257,901.15||6,040,103,875.86||
||Add: Non-operating income|(V)52|67,128,689.98||23,505,578.15||
||Less: Non-operating expenses|(V)53|125,031,298.57||45,601,286.22||
||III. Gross profit||3,614,355,292.56||6,018,008,167.79||
||Less: Income tax expenses|(V)54|728,440,538.60||580,458,478.80||
||IV. Net profit||2,885,914,753.96||5,437,549,688.99||
||(I) Categorization by continuity of operation||||||
||1. Net profit of continued operation||2,885,914,753.96||5,437,549,688.99||
||2. Net profit of discontinued operation||-||-||
||(II) Categorization by attribution of ownership||||||
||1. Net profit attributable to shareholders of the||1,090,418,910.77||2,365,214,907.45||
||parent||||||
||2. Profit or loss attributable to minority shareholder||1,795,495,843.19||3,072,334,781.54||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Consolidated Income Statement - continued
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Notes||Amount incurred in||Amount incurred in the|
|||||the current period||previous period (restated)|
||V. Amount of other comprehensive net income after|(V)56|204,602,785.68||642,605,602.46||
||tax||||||
||Amount of other comprehensive net income after tax||41,778,087.02||242,204,762.79||
||attributable to equity holders of the parent||||||
||(I) Other comprehensive income that will not be||(48,671,312.79)||65,863,882.85||
||reclassified to profit or loss||||||
||1. Change as a result of remeasurement of the net||(7,943,999.30)||5,313,793.20||
||defined benefit plan||||||
||2. Other comprehensive income under the equity||(46,138,662.23)||60,550,089.65||
||method that will not be reclassified to profit or loss||||||
||3. Fair value changes of other investments in equity||5,411,348.74||||
||instruments||||||
||(II) Other comprehensive income that will be||90,449,399.81||176,340,879.94||
||reclassified subsequently to profit or loss||||||
||1. Other comprehensive income under the equity||(7,952,099.73)||175,630,117.53||
||method that will be reclassified to profit or loss||||||
||2. Gains or losses on changes in fair value of||||87,348,744.15||
||available-for-sale financial assets||||||
||3. Translation differences of financial statements||98,401,499.54||(86,637,981.74)||
||denominated in foreign currencies||||||
||Amount of other comprehensive net income after tax||162,824,698.66||400,400,839.67||
||attributable to minority shareholders||||||
||VI. Total comprehensive income attributable to:||3,090,517,539.64||6,080,155,291.45||
||Shareholders of the parent||1,132,196,997.79||2,607,419,670.24||
||Minority shareholders||1,958,320,541.85||3,472,735,621.21||
||VII. Earnings per share||||||
||(I) Basic earnings per share||0.61||1.32||
||(II) Diluted earnings per share||0.61||1.32||

 Business combination involving enterprises under common control occurred during 2018, and the net profit of the acquiree generated before the business combination is RMB 2,685,592,888.44. The net profit of the acquiree generated in 2017 is RMB 4,928,289,403.49.
The accompanying notes form part of the financial statements.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Income Statement of the Company
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Notes||Amount incurred in||Amount incurred in|
|||||the current period||the previous period|
||I. Operating income|(XIV)4|243,899,253.07||262,128,083.88||
||Less: Operating costs|(XIV)4|160,065,451.42||147,940,894.54||
||Business taxes and levies||47,542,310.81||2,028,572.84||
||Administrative expenses||122,905,018.75||70,514,131.56||
||Research and development expenses||742,954.48||264,150.94||
||Financial expenses||34,174,062.13||(8,048,217.56)||
||Including: Interest expense||36,872,089.57||23,359,008.38||
||Interest income||20,843,903.27||25,260,320.71||
||Impairment losses of assets||-||(7,730.22)||
||Impairment losses of credit||-||||
||Add: Other income||271,927.46||-||
||Investment income|(XIV)5|193,138,161.44||648,579,235.35||
||Including: Income from investments in|(XIV)5|63,015,142.10||49,683,858.86||
||associates and||||||
||joint ventures||||||
||Gains (losses) on disposal of assets||(937,948.47)||304,464.57||
||II. Operating profit||70,941,595.91||698,319,981.70||
||Add: Non-operating income||1,336,230.70||33,035,528.92||
||Less: Non-operating expenses||867,312.18||241,366.11||
||III. Gross profit||71,410,514.43||731,114,144.51||
||Less: Income tax expenses||395,773.33||(396,443.74)||
||IV. Net profit||71,014,741.10||731,510,588.25||
||V. Amount of other comprehensive net income after tax||3,377,145.00||975,000.00||
||(I) Other comprehensive income that will not be reclassified||3,377,145.00||-||
||subsequently to profit or loss||||||
||1. Change as a result of remeasurement of the net defined||-||-||
||benefit plan||||||
||2. Other comprehensive income under the equity method||-||-||
||that will not be reclassified to profit or loss||||||
||3. Fair value changes of other investments in equity||3,377,145.00||||
||instruments||||||
||(II) Other comprehensive income that will be reclassified to||-||975,000.00||
||profit or loss||||||
||1. Other comprehensive income under the equity method||-||-||
||that will be reclassified to profit or loss||||||
||2. Gains or losses on changes in fair value of||||975,000.00||
||available-for-sale financial assets||||||
||3. Translation differences of financial statements||-||-||
||denominated in foreign currencies||||||
||VI. Total comprehensive income||74,391,886.10||732,485,588.25||

 The accompanying notes form part of the financial statements.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Consolidated Cash Flow Statement
Unit: RMB
|||||
|-|-|-|-|
||||Amount incurred in|
|||Amount incurred in||
|Item|Notes||the previous period|
|||the current period||
||||(restated)|
|I. Cash Flows from Operating Activities:||||
|Cash receipts from sales of goods and rendering of services||9,581,481,387.06|7,491,616,295.63|
|Receipts of tax refunds||6,203,721.12|2,026,413.44|
|Other cash receipts relating to operating activities|(V)57(1)|963,935,271.59|627,697,273.07|
|Sub-total of cash inflows||10,551,620,379.77|8,121,339,982.14|
|Cash payments for goods purchased and services received||2,647,715,026.47|2,127,952,256.75|
|Cash payments to and on behalf of employees||1,808,824,527.76|1,415,998,152.93|
|Payments of all types of taxes||762,131,488.97|514,231,751.73|
|Other cash payments relating to operating activities|(V)57(2)|1,044,373,911.73|588,120,784.45|
|Sub-total of cash outflows||6,263,044,954.93|4,646,302,945.86|
|Net Cash Flows from Operating Activities|(V)58(1)|4,288,575,424.84|3,475,037,036.28|
|II. Cash Flows from Investing Activities:||||
|Cash receipts from disposals and recovery of investments||200,000.00|342,998,439.88|
|Cash receipts from investments income||1,813,166,370.38|1,632,392,218.45|
|Net cash receipts from disposal of fixed assets, intangible||19,846,988.10|19,718,639.98|
|assets and other long-term assets||||
|Net cash receipts from disposal of subsidiary and other||-|7,617,940,434.09|
|operating units||||
|Other cash receipts relating to investing activities|(V)57(3)|156,615,992.14|218,174,398.17|
|Sub-total of cash inflows||1,989,829,350.62|9,831,224,130.57|
|Cash payments to acquire or construct fixed assets, intangible||2,437,080,643.74|2,511,160,012.03|
|assets and other long-term assets||||
|Cash payments to acquire investments||4,084,107,008.20|2,290,174,234.90|
|Net cash payment to acquire subsidiary and other operating|(V)57(5)|8,931,096,795.81|1,887,623,658.13|
|units||||
|Other cash payments relating to investing activities|(V)57(4)|1,686,107,391.23|1,058,395,077.56|
|Sub-total of cash outflows||17,138,391,838.98|7,747,352,982.62|
|Net Cash Flows from Investing Activities||(15,148,562,488.36)|2,083,871,147.95|
|III. Cash Flows from Financing Activities:||||
|Cash receipts from capital contributions||296,363,615.57|166,540,000.00|
|Including: cash receipts from capital contributions from||40,100,000.00|166,540,000.00|
|minority owners of subsidiary||||
|Cash receipts from borrowings||21,763,411,408.42|7,719,939,575.00|
|Cash receipts from issue of bonds||10,621,000,000.00|2,599,850,000.00|
|Other cash receipts relating to financing activities|(V)57(6)|3,876,395,683.27|-|
|Sub-total of cash inflows||36,557,170,707.26|10,486,329,575.00|
|Cash repayments of borrowings||23,593,666,839.99|6,729,078,966.70|
|Cash payments for distribution of dividends or profit or||3,942,108,074.86|4,462,491,329.19|
|interest||||
|Including: Payments for distribution of dividends or profit to||1,929,962,094.72|349,393,736.16|
|minorities||||
|Other cash payments relating to financing activities|(V)57(7)|146,196,535.06|83,248,718.01|
|Sub-total of cash outflows||27,681,971,449.91|11,274,819,013.90|
|Net Cash Flows from Financing Activities||8,875,199,257.35|(788,489,438.90)|
|IV. Effect of Foreign Exchange Rate Changes on Cash and||(371,390,771.83)|(294,425,747.23)|
|Cash Equivalents||||
|V. Net Increase (Decrease) in Cash and Cash Equivalents||(2,356,178,578.00)|4,475,992,998.10|
|Add: Opening balance of Cash and Cash Equivalents|(V)58(2)|7,729,460,082.75|3,253,467,084.65|
|VI. Closing Balance of Cash and Cash Equivalents|(V)58(2)|5,373,281,504.75|7,729,460,082.75|

The accompanying notes form part of the financial statements.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Cash Flow Statement of the Company
Unit: RMB
|||||
|-|-|-|-|
|||Amount incurred in|Amount incurred in|
|Item|Notes|||
|||the current period|the previous period|
|I. Cash Flows from Operating Activities:||||
|Cash receipts from sales of goods and rendering of services||229,302,378.14|269,045,995.41|
|Other cash receipts relating to operating activities||29,331,866.91|716,765,626.94|
|Sub-total of cash inflows||258,634,245.05|985,811,622.35|
|Cash payments for goods purchased and services received||74,086,330.85|78,023,594.34|
|Cash payments to and on behalf of employees||121,661,642.64|111,426,044.20|
|Payments of all types of taxes||9,401,709.94|10,127,012.26|
|Other cash payments relating to operating activities||279,797,604.56|247,511,704.35|
|Sub-total of cash outflows||484,947,287.99|447,088,355.15|
|Net Cash Flows from Operating Activities||(226,313,042.94)|538,723,267.20|
|II. Cash Flows from Investing Activities:||||
|Cash receipts from investments income||445,875,054.92|63,576,674.42|
|Net cash receipts from disposal of fixed assets, intangible assets||766,830.38|2,693,776.59|
|and other long-term assets||||
|Other cash receipts relating to investing activities||635,013,754.63|683,875,000.00|
|Sub-total of cash inflows||1,081,655,639.93|750,145,451.01|
|Cash payments to acquire or construct fixed assets, intangible||162,248,840.21|19,183,612.16|
|assets and other long-term assets||||
|Other cash payments relating to investing activities||374,513,229.40|685,067,880.47|
|Sub-total of cash outflows||536,762,069.61|704,251,492.63|
|Net Cash Flows from Investing Activities||544,893,570.32|45,893,958.38|
|III. Cash Flows from Financing Activities:||||
|Cash receipts from capital contributions||256,263,615.57|-|
|Cash receipts from borrowings||566,016,000.00|163,436,000.00|
|Cash receipts from issue of bonds||200,000,000.00|99,850,000.00|
|Sub-total of cash inflows||1,022,279,615.57|263,286,000.00|
|Cash repayments of borrowings||300,000,000.00|380,000,000.00|
|Cash payments for distribution of dividends or profit or interest||873,011,086.61|333,589,040.71|
|Other cash payments relating to financing activities||1,497,344.37|402,325.25|
|Sub-total of cash outflows||1,174,508,430.98|713,991,365.96|
|Net Cash Flows from Financing Activities||(152,228,815.41)|(450,705,365.96)|
|IV. Effect of Foreign Exchange Rate Changes on Cash and||(6,549,202.77)|(1,274,170.98)|
|Cash Equivalents||||
|V. Net Increase (Decrease) in Cash and Cash Equivalents||159,802,509.20|132,637,688.64|
|Add: Opening balance of Cash and Cash Equivalents||230,039,345.73|97,401,657.09|
|VI. Closing Balance of Cash and Cash Equivalents||389,841,854.93|230,039,345.73|

 The accompanying notes form part of the financial statements.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Consolidated Statement of Changes in Shareholders' Equity
Unit: RMB
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2018||||||||||||||
||||Attributable to shareholders of the parent|||||||||||Minorityinterests||Total|
|||Share capital||Capital reserve||Other comprehensive||Special||Surplus||Unappropriated|Others|||shareholders'|
|||||||income||reserve||reserve||profit||||equity|
|I|. Closing balance of the preceding year|644,763,730.00||167,480,381.24|19,800,344.49||4,767,373.45||520,074,434.56||3,566,083,142.17||-|1,644,073,503.71|6,567,042,909.62||
||Add: Changes in accounting policies|-||-|(722,556,561.97)||-||-||816,323,338.17||-|6,484,493.08|100,251,269.28||
||Corrections of prior period errors|-||-|-||-||-||-||-|-|-||
||Business combination involving|-||18,678,418,974.96|(26,864,990.92)||||-||4,900,224,775.30||-|43,870,482,449.58|67,422,261,208.92||
||enterprises under common control||||||||||||||||
||Others|-||-|-||-||-||-||-|-|-||
|I|I. Opening balance of the year|644,763,730.00||18,845,899,356.20|(729,621,208.40)||4,767,373.45||520,074,434.56||9,282,631,255.64||-|45,521,040,446.37|74,089,555,387.82||
|I|II. Changes for the year|1,148,648,648.00||581,013,600.85|818,547,186.97||3,463,706.98||7,101,474.11||(366,814,145.43)||-|4,135,410,013.51|6,327,370,484.99||
|(|I) Total comprehensive income|-||-|41,778,087.02||-||-||1,090,418,910.77||-|1,958,320,541.85|3,090,517,539.64||
|(|II) Owners' contributions and reduction in capital|1,148,648,648.00||581,013,600.85|776,769,099.95||-||-||-||-|3,092,504,057.82|5,598,935,406.62||
|1|．Capital contribution from|1,148,648,648.00||-|-||-||-||-||-|1,594,806,295.50|2,743,454,943.50||
||shareholders||||||||||||||||
|2|．Capital contribution from other equity|-||-|-||-||-||-||-|-|-||
||investment holder||||||||||||||||
|3|．Share-based payment recognized in|-||-|-||-||-||-||-|-|-||
||shareholders' equity||||||||||||||||
|4|．Business combination involving|-||(583,183,507.54)|776,769,099.95||-||-||-||-|-|193,585,592.41||
||enterprises under common control||||||||||||||||
|5|．Others|-||1,164,197,108.39|-||-||-||-||-|1,497,697,762.32|2,661,894,870.71||
|(|III) Profit distribution|-||-|-||-||7,101,474.11||(1,457,233,056.20)||-|(920,434,015.30)|(2,370,565,597.39)||
|1|．Transfer to surplus reserve|-||-|-||-||7,101,474.11||(7,101,474.11)||-|-|-||
|2|．Transfer to general reserve|-||-|-||-||-||-||-|-|-||
|3|．Distributions to shareholders|-||-|-||-||-||(850,443,359.86)||-|-|(850,443,359.86)||
|4|．Others|-||-|-||-||-||(599,688,222.23)||-|(920,434,015.30)|(1,520,122,237.53)||
|(|IV) Transfers within shareholders' equity|-||-|-||-||-||-||-|-|-||
|1|．Capitalization of capital reserve|-||-|-||-||-||-||-|-|-||
|2|．Capitalization of surplus reserve|-||-|-||-||-||-||-|-|-||
|3|．Loss made up by surplus reserve|-||-|-||-||-||-||-|-|-||
|4|．Others|-||-|-||-||-||-||-|-|-||
|(|V) Special reserve|-||-|-||3,463,706.98||-||-||-|5,019,429.14|8,483,136.12||
|1|．Withdrawn in the period|-||-|-||24,165,961.75||-||-||-|49,870,501.76|74,036,463.51||
|2|．Utilized in the period|-||-|-||(20,702,254.77)||-||-||-|(44,851,072.62)|(65,553,327.39)||
|(|VI) Others|-||-|-||-||-||-||-|-|-||
|I|V. Closing balance of the year|1,793,412,378.00||19,426,912,957.05|88,925,978.57||8,231,080.43||527,175,908.67||8,915,817,110.21||-|49,656,450,459.88|80,416,925,872.81||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Consolidated Statement of Changes in Shareholders' Equity - continued
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2017||||||||||
||||Attributable to shareholders of the parent||||||||Minority interests|Total shareholders'equity|
|||Share capital||Capital reserve||Other|Special reserve|Surplus reserve|Unappropriatedprofit|Others|||
|||||||comprehensive|||||||
|||||||income|||||||
|I|. Closing balance of the preceding year|644,763,730.00||167,480,381.25|(8,039,646.43)||4,145,765.65|520,074,434.56|3,381,390,887.86|-|927,178,183.53|5,636,993,736.42|
||Add: Changes in accounting policies|-||-|-||-|-|-|-|-|-|
||Corrections of prior period errors|-||-|-||-|-|-|-|-|-|
|B|usiness combination involving enterprises under|-||13,716,765,033.15|-||-|-|4,254,259,872.38|-|41,705,041,719.67|59,676,066,625.20|
||common control||||||||||||
||Others|-||-|-||-|-|-|-|-|-|
|I|I. Opening balance of the year|644,763,730.00||13,884,245,414.40|(8,039,646.43)||4,145,765.65|520,074,434.56|7,635,650,760.24|-|42,632,219,903.20|65,313,060,361.62|
|I|II. Changes for the year|-||4,961,653,941.80|975,000.00||621,607.80|-|830,657,157.23|-|2,882,336,050.09|8,676,243,756.92|
|(|I) Total comprehensive income|-||-|242,204,762.79||-|-|2,365,214,907.45|-|3,472,735,621.21|6,080,155,291.45|
|(|II) Owners' contributions and reduction in capital|-||4,961,653,941.80|(241,229,762.79)||-|-|-|-|1,551,760,081.00|6,272,184,260.01|
|1|．Capital contribution from|-|||-||-|-|-|-|131,153,105.53|131,153,105.53|
||shareholders||||||||||||
|2|．Capital contribution from other equity|-||4,790,837,053.25|-||-|-|-|-|(4,790,837,053.25)|-|
||investment holder||||||||||||
|3|．Share-based payment recognized in|-||-|-||-|-|-|-|-|-|
||shareholders' equity||||||||||||
|4|．Business combination involving|-||170,816,888.55|(241,229,762.79)||-|-|-|-|-|(70,412,874.24)|
||enterprises under common control||||||||||||
|5|．Others|-||-|-||-|-|-|-|6,211,444,028.72|6,211,444,028.72|
|(|III) Profit distribution|-||-|-||-|-|(1,534,557,750.22)|-|(2,145,447,695.86)|(3,680,005,446.08)|
|1|．Transfer to surplus reserve|-||-|-||-|-|-|-|-|-|
|2|．Transfer to general reserve|-||-|-||-|-|-|-|-|-|
|3|．Distributions to shareholders|-||-|-||-|-|(319,802,810.08)|-|(280,975,918.30)|(600,778,728.38)|
|4|．Others|-||-|-||-|-|(1,214,754,940.14)|-|(1,864,471,777.56)|(3,079,226,717.70)|
|(|IV) Transfers within shareholders' equity|-||-|-||-|-|-|-|-|-|
|1|．Capitalization of capital reserve|-||-|-||-|-|-|-|-|-|
|2|．Capitalization of surplus reserve|-||-|-||-|-|-|-|-|-|
|3|．Loss made up by surplus reserve|-||-|-||-|-|-|-|-|-|
|4|．Others|-||-|-||-|-|-|-|-|-|
|(|V) Special reserve|-||-|-||621,607.80|-|-|-|3,288,043.74|3,909,651.54|
|1|．Withdrawn in the period|-||-|-||17,456,696.76|-|-|-|33,537,670.52|50,994,367.28|
|2|．Utilized in the period|-||-|-||(16,835,088.96)|-|-|-|(30,249,626.78)|(47,084,715.74)|
|(|VI) Others|-||-|-||-|-|-|-|-|-|
|I|V. Closing balance of the year|644,763,730.00||18,845,899,356.20|(7,064,646.43)||4,767,373.45|520,074,434.56|8,466,307,917.47|-|45,514,555,953.29|73,989,304,118.54|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Statement of Changes in Shareholders' Equity of the Company
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2018||||||||
|||Share capital||Capital reserve||Other comprehensive|Special reserve|Surplus reserve|Unappropriated profit|Total shareholders' equity|
|||||||income|||||
||I. Closing balance of the preceding year|644,763,730.00||240,001,254.59|6,647,500.00||-|520,074,434.56|1,046,473,178.03|2,457,960,097.18|
||Add: Changes in accounting policies|-||-|92,613,480.00||-|-|-|92,613,480.00|
||Corrections of prior period|-||-|-||-|-|-|-|
||errors||||||||||
||Others|-||-|-||-|-|-|-|
||II. Opening balance of the year|644,763,730.00||240,001,254.59|99,260,980.00||-|520,074,434.56|1,046,473,178.03|2,550,573,577.18|
||III. Changes for the year|1,148,648,648.00||25,277,645,925.45|3,377,145.00||470,465.59|7,101,474.11|(786,530,092.87)|25,650,713,565.28|
||(I) Total comprehensive income|-||-|3,377,145.00||-|-|71,014,741.10|74,391,886.10|
||(II) Owners' contributions and|1,148,648,648.00||25,277,645,925.45|-||-|-|-|26,426,294,573.45|
||reduction in capital||||||||||
||1．Capital contribution from|1,148,648,648.00||25,276,764,780.38|-||-|-|-|26,425,413,428.38|
||shareholders||||||||||
||2．Share-based payment recognized in|-||-|-||-|-|-|-|
||shareholders' equity||||||||||
||3．Others|-||881,145.07|-||-|-|-|881,145.07|
||(III) Profit distribution|-||-|-||-|7,101,474.11|(857,544,833.97)|(850,443,359.86)|
||1．Transfer to surplus reserve|-||-|-||-|7,101,474.11|(7,101,474.11)|-|
||2．Transfer to general reserve|-||-|-||-|-|-|-|
||3．Distributions to shareholders|-||-|-||-|-|(850,443,359.86)|(850,443,359.86)|
||4．Others|-||-|-||-|-|-|-|
||(IV) Transfers within shareholders'|-||-|-||-|-|-|-|
||equity||||||||||
||1．Capitalization of capital reserve|-||-|-||-|-|-|-|
||2．Capitalization of surplus reserve|-||-|-||-|-|-|-|
||3．Loss made up by surplus reserve|-||-|-||-|-|-|-|
||4．Others|-||-|-||-|-|-|-|
||(V) Special reserve|-||-|-||470,465.59|-|-|470,465.59|
||1．Withdrawn in the period|-||-|-||2,621,280.84|-|-|2,621,280.84|
||2．Utilized in the period|-||-|-||(2,150,815.25)|-|-|(2,150,815.25)|
||(VI) Others|-||-|-||-|-|-|-|
||IV. Closing balance of the year|1,793,412,378.00||25,517,647,180.04|102,638,125.00||470,465.59|527,175,908.67|259,943,085.16|28,201,287,142.46|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
Statement of Changes in Shareholders' Equity of the Company - continued
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item|||2017||||||||
|||Share capital||Capital reserve||Other comprehensive|Special reserve|Surplus reserve|Unappropriated profit|Total shareholders' equity|
|||||||income|||||
||I. Closing balance of the preceding year|644,763,730.00||240,001,254.59|5,672,500.00||1,027,543.25|520,074,434.56|634,765,399.86|2,046,304,862.26|
||Add: Changes in accounting policies|-||-|-||-|-|-|-|
||Corrections of prior period|-||-|-||-|-|-|-|
||errors||||||||||
||Others|-||-|-||-|-|-|-|
||II. Opening balance of the year|644,763,730.00||240,001,254.59|5,672,500.00||1,027,543.25|520,074,434.56|634,765,399.86|2,046,304,862.26|
||III. Changes for the year|-||-|975,000.00||(1,027,543.25)|-|411,707,778.17|411,655,234.92|
||(I) Total comprehensive income|-||-|975,000.00||-|-|731,510,588.25|732,485,588.25|
||(II) Owners' contributions and|-||-|-||-|-|-|-|
||reduction in capital||||||||||
||1．Capital contribution from|-||-|-||-|-|-|-|
||shareholders||||||||||
||2．Share-based payment recognized in|-||-|-||-|-|-|-|
||shareholders' equity||||||||||
||3．Others|-||-|-||-|-|-|-|
||(III) Profit distribution|-||-|-||-|-|(319,802,810.08)|(319,802,810.08)|
||1．Transfer to surplus reserve|-||-|-||-|-|-|-|
||2．Transfer to general reserve|-||-|-||-|-|-|-|
||3．Distributions to shareholders|-||-|-||-|-|(319,802,810.08)|(319,802,810.08)|
||4．Others|-||-|-||-|-|-|-|
||(IV) Transfers within shareholders'|-||-|-||-|-|-|-|
||equity||||||||||
||1．Capitalization of capital reserve|-||-|-||-|-|-|-|
||2．Capitalization of surplus reserve|-||-|-||-|-|-|-|
||3．Loss made up by surplus reserve|-||-|-||-|-|-|-|
||4．Others|-||-|-||-|-|-|-|
||(V) Special reserve|-||-|-||(1,027,543.25)|-|-|(1,027,543.25)|
||1．Withdrawn in the period|-||-|-||2,239,851.36|-|-|2,239,851.36|
||2．Utilized in the period|-||-|-||(3,267,394.61)|-|-|(3,267,394.61)|
||(VI) Others|-||-|-||-|-|-|-|
||IV. Closing balance of the year|644,763,730.00||240,001,254.59|6,647,500.00||-|520,074,434.56|1,046,473,178.03|2,457,960,097.18|

The accompanying notes form part of the financial statements.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(I) GENERAL INFORMATION OF THE COMPANY
China Merchants Port Holdings Company Limited (formerly known as "Shenzhen Chiwan Wharf Holdings Limited", hereinafter referred to as the "Company") was a stock limited company incorporated in Shenzhen, Guangdong Province, on 16 January 1993.
On 30 October 2018, as approved by the Reply on Approving Issuance of Shares to Purchase Assets and Collection of Funds from Shenzhen Chiwan Wharf Holdings Limited to China Merchants Investment Development Company Limited (Zheng Jian Xu Ke[2018] No. 1750) issued by China Securities Regulatory Commission ("CSRC"), the Company issued
1,148,648,648 shares of A-stock to China Merchants Investment Development Company Limited ("CMID") to acquire39.45% equity of China Merchants Port Holdings Company Limited ("CMPORT"). The Company has adopted this name since completion of the acquisition. The headquarters of the Company is located in Shenzhen, Guangdong Province. The Company and its subsidiaries (collectively the "Group") are principally engaged in the rendering of port service, bonded logistics service and other business such as property development and investment. The Company's and consolidated financial statements have been approved by the Board of Directors on 28 March 2019.
See Notes (VII) "Equity in other entities" for details of the scope of consolidated financial statements in the current period are subsidiaries acquired through business combination under common control. See Note (VI) "Changes in the consolidated scope" for details of changes in the scope of consolidated financial statements in the current period.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises ("ASBE") issued by the Ministry of Finance ("MoF"). In addition, the Group has disclosed relevant financial information in accordance with Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in 2014).
Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for certain financial instruments which are measured at fair value, the Group adopts the historical cost as the principle of measurement of the financial statements. Upon being restructured into a stock company, the fixed assets and intangible assets initially contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department. Where assets are impaired, provisions for asset impairment are made in accordance with the
relevant requirements.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS - continued
Basis of accounting and principle of measurement - continued
Where the historical cost is adopted as the measurement basis, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or the contractual amounts for assuming the present obligation, or, at the amounts of cash or cash equivalents expected to be paid to settle the liabilities in the normal course of business. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using valuation technique. Fair value measurement and/or disclosure in the financial statements are determined according to the above basis. Fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
• Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
Going Concern
The Group assessed its ability to continue as a going concern for the 12 months from 31 December 2018 and did not notice any events or circumstances that may cast significant doubt upon its ability to continue as a going concern. Therefore, the financial statements have been prepared on a going concern basis.
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
All the following significant accounting policies and accounting estimates are based on Accounting Standards for Business Enterprises ("ASBE").
1. Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with the ASBE, and present truly and completely, theCompany’s and consolidated financial position as of 31 December 2018, and theCompany’s and consolidated results of operations and cash flows for the year then ended.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
2. Accounting period
The Group has adopted the calendar year as its accounting year, e.g. from 1 January to 31 December.
3. Operating cycle
An operating cycle refers to the period since when an enterprise purchases assets for processing purpose till the realization of those assets in cash or cash equivalents. The Group are principally engaged in the rendering of port service, bonded logistics service and other business such as property development and investment with an operating cycle of one year.
4. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company operates. Therefore, the Company chooses RMB as their functional currency. The Company's subsidiaries chooses their functional currency on the basis of the primary economic environment in which they operate. The Company adopts RMB to prepare its financial statements.
5. The accounting treatment of business combinations involving or not involving enterprises under common control
Business combinations are classified into business combinations involving enterprises under common control and business combinations not involving enterprises under common control. 5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded by the combining entities at the date of the combination. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are incurred.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
5. The accounting treatment of business combinations involving or not involving enterprises under common control - continued
5.2 Business combinations not involving enterprises under common control and goodwill A business combination not involving enterprises under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of the acquire. Where a business combination not involving enterprises under common control is achieved in stages that involve multiple transactions, the cost of combination is the sum of the consideration paid at the acquisition date and the fair value at the acquisition date of the acquirer's previously held interest in the acquiree. The intermediary expenses (fees in respect of auditing, legal services, valuation and consultancy services, etc.) and other administrative expenses attributable to the business combination are recognized in profit or loss in the periods when they are incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired by the acquirer in a business combination that meet the recognition criteria shall be measured at fair value at the acquisition date.
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the difference is treated as an asset and recognized as goodwill, which is measured at cost on initial recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment losses, and is presented separately in the consolidated financial statements.
6. Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control exists when the investor has power over the investee; is exposed, or has rights, to variable returns from its involvement with the investee; and has the ability to use its power over the investee to affect its returns. The Group reassesses whether or not it controls an investee if
facts and circumstances indicate that there are changes of the above elements of the definition of
control.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Preparation of consolidated financial statements - continued
Consolidation of a subsidiary begins when the Group obtains control over the subsidiaries and ceases when the Group loses control of the subsidiary.
For a subsidiary already disposed of by the Group, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
For subsidiaries acquired through a business combination involving enterprises not under common control, the operating results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
No matter when the business combination occurs in the reporting period, subsidiaries acquired through a business combination involving enterprises under common control or the party being absorbed under merger by absorption are included in the Group's scope of consolidation as if they had been included in the scope of consolidation from the date when they first came under the common control of the ultimate controlling party. Their operating results and cash flows from the date when they first came under the common control of the ultimate controlling party are included in the consolidated income statement and consolidated statement of cash flows, as appropriate. The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the uniform accounting policies and accounting periods set out by the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the parent is treated as minority interests and presented as "minority interests" in the consolidated balance sheet under
shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable to minority interests is presented as "minority interests" in the consolidated income statement under the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders' portion of the opening balance of shareholders' equity of the subsidiary, the excess amount is still allocated against minority interests.
Acquisition of minority interests or disposals of interests in a subsidiary that do not result in the loss of control over the subsidiary are accounted for as equity transactions. The carrying amounts of the parent's interests and minority interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the amount by which the minority interests are
adjusted and the fair value of the consideration paid or received is adjusted to capital reserve. If
the capital reserve is not sufficient to absorb the difference, the excess are adjusted against
retained earnings.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Preparation of consolidated financial statements - continued
For the stepwise acquisition of equity interest till acquiring control after a few transactions and leading to business combination not involving enterprises under common control, this should be dealt with based on whether this belongs to 'package deal': if it belongs to 'package deal', transactions will be dealt as transactions to acquire control. If it does not belong to 'package deal', transactions to acquire control on acquisition date will be under accounting treatment, the fair value of acquirees' shares held before acquisition date will be revalued, and the difference between fair value and book value will be recognized in profit or loss of the current period; if acquirees' shares held before acquisition date involve in changes of other comprehensive income and other equity of owners under equity method, this will be transferred to income of acquisition date.
When the Group loses control over a subsidiary due to disposal of equity investment or other reasons, any retained interest is re-measured at its fair value at the date when control is lost. The difference between (i) the aggregate of the consideration received on disposal and the fair value of any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated from the acquisition date according to the original proportion of ownership interests is recognized as investment income in the period in which control is lost, and the goodwill is offset accordingly. Other comprehensive income associated with investment in the former subsidiary is reclassified to investment income in the period in which control is lost.
When the Group loses control of a subsidiary in two or more arrangements (transactions), terms and conditions of the arrangements (transactions) and their economic effects are considered. One or more of the following indicate that the Group shall account for the multiple arrangements as a 'package deal': (i) they are entered into at the same time or in contemplation of each other; (ii) they form a complete transaction designed to achieve an overall commercial effect; (iii) the occurrence of one transaction is dependent on the occurrence of at least one other transaction; (iv) one transaction alone is not economically justified, but it is economically justified when considered together with other transactions. Where the transactions of disposal of equity investments in a subsidiary until the loss of control are assessed as a package deal, these transactions are accounted for as one transaction of disposal of a subsidiary with loss of control. Before losing control, the difference of consideration received on disposal and the share of net assets of the subsidiary continuously calculated from acquisition date is recognized as other comprehensive income. When losing control, the cumulated other comprehensive income is transferred to profit or loss of the period of losing control. If the transactions of disposal of equity investments in a subsidiary are not assessed as a package deal, these transactions are accounted for as unrelated transactions.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7. Types of joint arrangements and the accounting treatment of joint operation There are two types of joint arrangements - joint operations and joint ventures. The classification of joint arrangements under is determined based on the rights and obligations of parties to the joint arrangements by considering the structure, the legal form of the arrangements, the contractual terms agreed by the parties to the arrangement. A joint operation is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.
Investments in joint ventures are accounted for using the equity method by the Group, which is detailed in Notes (III) 14.3.2, a long-term equity investment is subject to for using the equity method.
The Group as a joint operator recognizes the following items in relation to its interest in a joint operation: (1) its solely-held assets, including its share of any assets held jointly; (2) its solely-assumed liabilities, including its share of any liabilities incurred jointly; (3) its revenue from the sale of its share of the output arising from the joint operation; (4) its share of the revenue from the sale of the output by the joint operation; and (5) its solely-incurred expenses, including its share of any expenses incurred jointly. The Group accounts for the recognized assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the requirements applicable to the particular assets, liabilities, revenues and expenses.
8. Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are the Group's short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 9. Foreign currency transactions
9.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into functional currency using the spot exchange rates at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet date are recognized in profit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset during the capitalization period; (2) exchange differences related to hedging
instruments for the purpose of hedging against foreign currency risks are accounted for using
hedge accounting.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Foreign currency transactions - continued
9.1 Transactions denominated in foreign currencies - continued
When the consolidated financial statements include foreign operation(s), if there is foreign currency monetary item constituting a net investment in a foreign operation, exchange difference arising from changes in exchange rates are recognized as "exchange differences arising on translation of financial statements denominated in foreign currencies " in other comprehensive income, and in profit and loss for the period upon disposal of the foreign operation.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot exchange rates on the dates of the transactions; the amounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange rate on the date the fair value is determined. Difference between the re-translated functional currency amount and the original functional currency amount is treated as changes in fair value (including changes of exchange rate) and is recognized in profit and loss or as other comprehensive income.
9.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a foreign operation are translated from the foreign currency into RMB using the following method: assets and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the balance sheet date; shareholders' equity items are translated at the spot exchange rates at the dates on which such items arose; all items in the income statement as well as items reflecting the distribution of profits are translated at exchange rates that approximate the actual spot exchange rates on the dates of the transactions; The difference between the translated assets and the aggregate of liabilities and shareholders' equity items is recognized as other comprehensive income and included in shareholders' equity.
Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary are translated at average exchange rate during the accounting period of consolidated financial statements. The effect of exchange rate changes on cash and cash equivalents is regarded as a reconciling item and presented separately in the cash flow statement as "effect of exchange rate changes on cash and cash equivalents".
The opening balances and the comparative figures of previous year are presented at the translated amounts in the previous year's financial statements.
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a foreign operation due to disposal of certain interest in it or other reasons, the Group transfers the accumulated exchange differences arising on translation of financial statements of this foreign operation attributable to the owners' equity of the Company and presented under owners' equity,
to profit or loss in the period in which the disposal occurs.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Foreign currency transactions - continued
9.2 Translation of financial statements denominated in foreign currencies - continued In case of a disposal of part equity investments or other reason leading to lower interest percentage in foreign operations but does not result in the Group losing control over a foreign operation, the proportionate share of accumulated exchange differences arising on translation of financial statements are re-attributed to minority interests and are not recognized in profit and loss. For partial disposals of equity interests in foreign operations which are associates or joint ventures, the proportionate share of the accumulated exchange differences arising on translation of financial statements of foreign operations is reclassified to profit or loss.
10. Financial instruments
The Group recognizes a financial asset or a financial liability when it becomes a party to the contractual provisions of a financial instrument.
All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
Financial assets and financial liabilities are initially measured at fair value. For financial assets and financial liabilities at fair value through profit or loss, relevant transaction costs are directly recognized in profit or loss; transaction costs relating to other categories of financial assets and financial liabilities are included in the value initially recognized. For accounts receivable recognized that do not contain a significant financing component or a financing component included in the contracts less than one year which are not considered by the Group, which are within the scope of Accounting Standard for Business Enterprises No.14 - Revenue (hereinafter referred to as "new standards for revenue"), transaction prices defined in the standards shall be adopted on initial recognition.
The effective interest method is a method that is used in the calculation of the amortized cost of a financial asset or a financial liability and in the allocation of the interest income or interest expense in profit or loss over the relevant period.
The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or financial liability to the gross carrying amount of a financial asset or to the amortized cost of a financial liability. When calculating the effective interest rate, the Group estimates future cash flows by considering all the contractual terms of the financial asset or financial liability (for example, prepayment, extension, call option or similar options) but shall not consider the expected credit losses.
The amortized cost of a financial asset or a financial liability is the amount of a financial asset or a financial liability initially recognized net of principal repaid, plus or less the cumulative amortized amount arising from amortization of the difference between the amount initially recognized and the amount at the maturity date using the effective interest method, net of cumulative credit loss
allowance (only applicable to financial assets).
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.1 Classification, recognition and measurement of financial assets
Subsequent to initial recognition, the Group's financial assets of various categories are subsequently measured at amortized cost, at fair value through other comprehensive income or at fair value through profit or loss.
If contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding, and the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows, such asset is classified into financial assets measured at amortized cost, which include cash and bank balances, notes receivable and accounts receivable and other receivables and etc..
Financial assets that meet the following conditions are subsequently measured at fair value through other comprehensive income ("FVTOCI"): the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling; and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Financial assets at FVTOCI are presented as other debt investments. Other debt investments due within one year (inclusive) since the balance sheet date are presented as non-current assets due within one year. Other debt investments due within one year (inclusive) upon acquisition are presented as other current assets.
On initial recognition, the Group may irrevocably designate non-trading equity instruments, other than contingent consideration recognized through business combination not involving enterprises under common control, as financial assets at FVTOCI on an individual basis. Such financial assets at FVTOCI are presented as other equity instrument.
Financial assets measured at fair value through profit or loss ("FVTPL") include those classified as financial assets at FVTPL and those designated as financial assets at FVTPL, which are presented as held-for-trading financial assets other than derivative financial assets. Such financial assets at FVTPL which may fall due more than one year since the balance sheet date and will be held more than one year are presented as other non-current financial assets.
• Any financial assets that does not qualify for amortized cost measurement or measurement at FVTOCI or designated at FVTOCI are classified into financial assets at FVTPL.
• Upon initial recognition, in order to eliminate or significantly reduce accounting mismatch and qualified hybrid financial instrument combines financial asset with embedded derivatives, the Group will irrevocably designated it as financial liabilities at FVTPL.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.1 Classification, recognition and measurement of financial assets -continued
A financial asset is classified as held for trading if one of the following conditions is satisfied:• It has been acquired principally for the purpose of selling in the near term; or
• On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or
• It is a derivative that is not a financial guarantee contract or designated and effective as a hedging instrument.
10.1.1 Financial assets measured at amortized cost
Financial assets measured at amortized cost are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from impairment or derecognition is recognized in profit or loss.
For financial assets measured at amortized cost, the Group recognizes interest income using effective interest method. The Group calculates and recognizes interest income through book value of financial assets multiplying effective interest, except for the following circumstances:• For purchased or originated credit-impaired financial assets with credit impairment, the Group calculates and recognizes its interest income based on amortized cost of the financial asset and the effective interest through credit adjustment since initial recognition. 10.1.2 Financial assets at FVTOCI
Impairment losses or gains related to financial assets at FVTOCI, interest income measured using effective interest method and exchange gains or losses are recognized into profit or loss for the current period, except for the above circumstances, changes in fair value of the financial assets are included in other comprehensive income. Amounts charged to profit or loss for every period equal to the amount charged to profit or loss as it is measured at amortized costs. When the financial asset is derecognized, the cumulative gains or losses previously recognized in other
comprehensive income shall be removed from other comprehensive income and recognized in profit or loss.
Non-trading equity instrument investments are designated as financial assets at FVTOCI, the cumulative gains or losses previously recognized in other comprehensive income allocated to the part derecognized are transferred and included in retained earnings. During the period in which the Group holds the non-trading equity instrument, revenue from dividends is recognized in profit
or loss for the current period when (1) the Group has established the right of collecting dividends;
(2) it is probable that the associated economic benefits will flow to the Group; and (3) the amount
of dividends can be measured reliably.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.1 Classification, recognition and measurement of financial assets -continued
10.1.3 Financial assets at FVTPL
Financial assets at FVTPL are subsequently measured at fair value. Gain or loss arising from changes in fair values and dividends and interests related to the financial assets are recognized in profit or loss.
10.2 Impairment of financial instruments
The Group makes accounting treatment on impairment and recognizes loss allowance for expected credit losses ("ECL") on financial instruments measured at amortized cost, financial instruments classified as at FVTOCI, lease receivables and contract assets.
The Group makes a loss allowance against amount of lifetime ECL of the contract assets and accounts receivable that exclude significant financing component or do not consider the financing component in the contract within one year arising from transactions adopting New Standards for Revenue, contract assets and accounts receivable that include significant financing component and lease receivables arising from transactions adopting New Standards for Lease.
For other financial instrument, other than purchased or originated credit-impaired financial assets, the Group assesses changes in credit risks of the relevant financial asset since initial recognition at each balance sheet date. If the credit loss of the financial instrument has been significantly increased since initial recognition, the Group will make a loss allowance at an amount of expected credit loss during the whole life; if not, the Group will make a loss allowance for the financial instrument at an amount in the future 12-month expected credit losses. Except for the financial assets classified as at FVTOCI, increase in or reversal of credit loss allowance is included in profit or loss as loss/gain on impairment. For the financial assets classified as at FVTOCI, the Group recognizes credit loss allowance in other comprehensive income and recognizes the loss/gain on impairment in profit or loss, while the Group does not decrease the carrying amount of such financial assets in the balance sheet.
The Group has makes a loss allowance against amount of expected credit losses during the whole life in the prior accounting period. However, at the balance sheet date, the credit risk on a financial instrument has not increased significantly since initial recognition; the Group will measure the loss allowance for that financial instrument at an amount in the future 12-month expected credit losses. Reversed amount of loss allowance arising from such circumstances shall be included in profit or loss as impairment gains.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2 Impairment of financial instruments - continued
10.2.1 Significant increase of credit risk
In assessing whether the credit risk has increased significantly since initial recognition, the Group compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on the financial instrument as at the date of initial recognition. For loan commitments, the date that the Group becomes a party to the irrevocable commitment is considered to be the date of initial recognition in the application of criteria related to the financial instrument for impairment.
In particular, the following information is taken into account when assessing whether credit risk has increased significantly:
(1) Significant changes in internal price indicators of credit risk as a result of a change in credit risk;
(2) Other changes in the rates or terms of an existing financial instrument that would be significantly different if the instrument was newly originated or issued at the balance sheet date (such as more stringent covenants, increased amounts of collateral or guarantees, or higher income coverage).
(3) Significant changes in external market indicators of credit risk for a particular financial instrument or similar financial instruments with the same expected life. These indicators include the credit spread, the credit swap prices for the borrower, the length of time or the extent to which the fair value of a financial asset has been less than its amortized cost and other market information related to the borrower, such as changes in the price of aborrower’s debt and equity instruments.
(4) Significant changes in actual or expected external credit rating for the financial instruments; (5) An actual or expected internal credit rating downgrade for the borrower
(6) Adverse changes in business, financial or economic conditions that are expected to cause a significant change in thedebtor’s ability to meet its debt obligations;
(7) An actual or expected significant change in the operating results of the debtor;
(8) Significant increases in credit risk on other financial instruments of the same borrower; (9) Significant adverse change in the regulatory, economic, or technological environment of the debtor;
(10) Significant changes in the value of the collateral supporting the obligation or in the quality of third-party guarantees or credit enhancements, which are expected to reduce thedebtor’s economic incentive to make scheduled contractual payments or to otherwise have an effect on the probability of a default occurring.
(11) Significant changes in circumstances expected to reduce thedebtor’s economic incentive to make scheduled contractual payments;
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2.1 Significant increase of credit risk - continued
(12) Expected changes in the loan documentation including an expected breach of contract that may lead to covenant waivers or amendments, interest payment holidays, interest rate step-ups, requiring additional collateral or guarantees, or other changes to the contractual framework of the financial instrument;
(13) Significant changes in the expected performance and behavior of the debtor;
(14) Changes in theentity’s credit management approach in relation to the financial instrument; (15) Past due of contract payment.
At balance sheet date, if the Group judges that the financial instrument solely has lower credit risk, the Group will assume that the credit risk of the financial instrument has not been significantly increased since initial recognition.
10.2.2 Credit-impaired financial assets
When the Group expected occurrence of one or more events which may cause adverse impact on future cash flows of a financial asset, the financial asset will become a credit-impaired financial assets. Objective evidence that a financial asset is impaired includes but not limited to the following observable events:
(1) Significant financial difficulty of the issuer or debtor;
(2) A breach of contract by the debtor, such as a default or delinquency in interest or principal payments;
(3) The creditor, for economic or legal reasons relating to thedebtor’s financial difficulty, granting a concession to the debtor;
(4) It becoming probable that the debtor will enter bankruptcy or other financial
reorganizations;
(5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer or the debtor;
(6) Purchase or originate a financial asset with a large scale of discount, which reflects facts of credit loss incurred.
10.2.3 Determination of expected credit loss
The Group uses a provision matrix to determine the credit losses for accounts receivable, contract assets and debt investment based on a portfolio basis. The Group classifies financial instruments into different groups based on common risk characteristics. Common credit risk characteristics include credit risk rating, the date of initial recognition, remaining contractual maturity, industry of borrower and geographical location of the borrower etc.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2 Impairment of financial assets - continued
10.2.3 Determination of expected credit loss - continued
The Group determines expected credit losses of relevant financial instruments using the following methods:
• For a financial asset, a credit loss is the present value of the difference between the contractual cash flows that are due to the Group under the contract and the cash flows that the Group expects to receive;
• For a lease receivable, a credit loss is the present value of the difference between the contractual cash flows that are due to the Group under the contract and the cash flows that the Group expects to receive;
• For a financial asset with credit-impaired at the balance sheet date, but not purchased or originated credit-impaired, a credit losses is the difference between theasset’s gross carrying amount and the present value of estimated future cash flows discounted at the financialasset’s original effective interest rate.
The factors reflected in methods of measurement of expected credit losses include an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes; time value of money; reasonable and supportable information about past events, current conditions and forecasts on future economic status at balance sheet date without unnecessary additional costs or efforts.
10.2.4 Write-down of financial assets
When the Group will no longer reasonably expect that the contractual cash flows of financial assets can be collected in aggregate or in part, the Group will directly write down the carrying amount of the financial asset, which constitutes derecognition of relevant financial assets. 10.3 Transfer of financial assets
The Group will derecognize a financial asset if one of the following conditions is satisfied: (i) the contractual rights to the cash flows from the financial asset expire; (ii) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; or (iii) although the financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.3 Transfer of financial assets - continued
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and it retains control of the financial asset, the Group will recognize the financial asset to the extent of its continuing involvement in the transferred financial asset and recognize an associated liability. The Group will measure relevant liabilities as follows:
• For transferred financial assets carried at amortized cost, the carrying amount of relevant liabilities is the carrying amount of financial assets transferred with continuing involvement less amortized cost of the Group's retained rights (if the Group retains relevant rights upon transfer of financial assets) with addition of amortized cost of obligations assumed by the Group (if the Group assumes relevant obligations upon transfer of financial assets). Relevant liabilities are not designated as financial liabilities at fair value through profit or loss.• For transferred financial assets carried at fair value, the carrying amount of relevant financial liabilities is the carrying amount of financial assets transferred with continuing involvement less fair value of the Group's retained rights (if the Group retains relevant rights upon transfer of financial assets) with addition of fair value of obligations assumed by the Group (if the Group assumes relevant obligations upon transfer of financial assets). Accordingly, the fair value of relevant rights and obligations shall be measured on an individual basis. For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, for financial asset categorized into those measured at amortized cost and financial asset categorized into those measured at FVTOCI, the difference between (1) the carrying amount of the financial asset transferred and (2) the sum of the consideration received from the transfer and accumulated changes in fair value initially recorded in other comprehensive income is recognized in profit or loss. For the non-tradable equity instrument designated as financial assets at FVTOCI, cumulative gain or loss that has been recognized in other comprehensive income should be removed from other comprehensive income but be recognized in retained earnings.
For a part of transfer of a financial asset that satisfies the derecognition criteria, the carrying amount of the transferred financial asset is allocated between the part that is derecognized and the part that is continuously involved, based on the respective fair values of those parts on transfer date. The difference between (1) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other comprehensive income; and (2) the carrying amount allocated to the part derecognized on derecognition date; is recognized in profit or loss. For the non-tradable equity instrument designated as financial assets at FVTOCI, cumulative gain or loss that has been recognized in other comprehensive income should be removed from other comprehensive income but be recognized in retained earnings.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.3 Transfer of financial assets - continued
For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria, the Group will continuously recognize the transferred financial asset in its entirety. Considerations received due to transfer of assets should be recognized as a liability upon receipts.
10.4 Classification of financial liabilities equity instruments
Financial instruments issued by the Group are classified into financial liabilities or equity instruments on the basis of the substance of the contractual arrangements and the economic nature not only its legal form, together with the definition of financial liability and equity instruments on initial recognition.
10.4.1 Classification, recognition and measurement of financial liabilities
On initial recognition, financial liabilities are classified into financial liabilities at FVTPL and other financial liabilities.
10.4.1.1 Financial liabilities at FVTPL
Financial liabilities at FVTPL consist of financial liabilities held for trading (including derivatives classified as financial liabilities) and those designated as at FVTPL. Except for derivative financial liabilities presented separately, the financial liabilities at FVTPL are presented as held-for-trading financial liabilities.
A financial liability is classified as held for trading if one of the following conditions is satisfied:• It has been acquired principally for the purpose of repurchasing in the near term; or
• On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or
• It is a derivative that is not a financial guarantee contract or designated and effective as a hedging instrument.
A financial liability may be designated as at FVTPL on initial recognition when one of the following conditions is satisfied: (i) Such designation eliminates or significantly reduces accounting mismatch; or (ii) The Group makes management and performance evaluation on a fair value basis, in accordance with the Group's formally documented risk management or investment strategy, and reports to key management personnel on that basis. (iii) The qualified hybrid financial instrument combines financial asset with embedded derivatives.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.4 Classification of financial liabilities equity instruments - continued
10.4.1 Classification, recognition and measurement of financial liabilities - continued 10.4.1.1 Financial liabilities at FVTPL - continued
Transaction financial liabilities are subsequently measured at fair value. Any gains or losses arising from changes in the fair value and any dividend or interest expenses paid on the financial liabilities are recognized in profit or loss.
The amount of change in the fair value of the financial liability that is attributable to changes in the credit risk of that liability shall be presented in other comprehensive income, other changes in fair values are included in profit or loss for the current period. Upon the derecognition of such liability, the accumulated amount of change in fair value that is attributable to changes in the credit risk of that liability, which is recognized in other comprehensive income, is transferred to retained earnings. Any dividend or interest income earned on the financial liabilities are recognized in profit or loss. If the impact of the change in credit risk of such financial liability dealt with in the above way would create or enlarge an accounting mismatch in profit or loss, the Group shall present all gains or losses on that liability (including the effects of changes in the credit risk of that liability) in profit or loss.
10.4.1.2 Other financial liabilities
Other financial liabilities, except for financial liabilities arising from transfer of financial assets does not satisfy derecognition criteria or continue involvement of transferred financial assets, are subsequently measured at amortized cost, with gain or loss arising from derecognition or amortization recognized in profit or loss.
That the Group and its counterparty modify or renegotiate the contract does not result in derecognition of a financial liability subsequently measured at amortized cost but result in changes in contractual cash flows, the Group will recalculate the carrying amount of the financial liability, with relevant gain or loss recognized in profit or loss. The Group will determine carrying amount of the financial liability based on the present value of renegotiated or modified contractual cash flows discounted at the financial liability's original effective interest rate. For all costs or expenses arising from modification or renegotiation of the contract, the Group will adjust the modified carrying amount of the financial liability and make amortization during the remaining term of the modified financial liability.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.4 Classification of financial liabilities equity instruments - continued
10.4.1 Classification, recognition and measurement of financial liabilities - continued 10.4.1.3 Financial guarantee contracts
A financial guarantee contract is a contract that requires the issuer to make specified payments to reimburse the holder of the contract for a loss it incurs because a specified debtor fails to make payment when due in accordance with the original or modified terms of a debt instrument. Subsequent to initial recognition, financial guarantee contracts that are not designated as financial liabilities at fair value through profit or loss are measured at the higher of: (1) amount of loss provision; and (2) the amount initially recognized less cumulative amortization amount determined based on new standards for revenue.
10.4.2 Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation (or part of it) is discharged. An agreement between the Group (the debtor) and the creditor to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
When the Group derecognizes a financial liability or a part of it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
10.4.3 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments issued (including refinanced), repurchased, sold and cancelled by the Group are recognized as changes of equity. Changes of fair value of equity instruments is not recognized by the Group. Transaction costs related to equity transactions are deducted from equity.
The Group recognizes the distribution to holders of the equity instruments as distribution of profits, dividends paid do not affect total amount of shareholders' equity.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.5 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
11. Accounts receivable
The Group makes internal credit ratings on customers and determines expected losses rate of accounts receivable. Basis for determining ratings and methods for bad debt provision are as follows:
|||||
|-|-|-|-|
|Internal credit rating|Basis for determining portfolio||Average expected loss|
||||rate (%)|
|A|Customers can make repayments withincredit term and have good credit recordsbased on historical experience. Theprobability of unpayment of due amount areextremely low in the foreseeable future.|0.00-0.10||
|B|The customer may have overdue paymentbased on historical experience but they canmake repayments.|0.10-0.30||
|C|The evidences indicate that the overduecredit risks of the customer are significantlyincreased and there is probability ofunpayment and default.|0.30-50.00||
|D|The evidences indicate that the accountsreceivable are impaired and the customerhas significant financial difficulty. Theamounts cannot be recovered in theforeseeable future.|50.00-100.00||

12. Inventories
12.1 Categories of inventories
Inventories include raw materials, merchandise and reusable materials and etc. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
12. Inventories - continued
12.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method. 12.3 Basis for determining net realizable value of inventories and provision methods for decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the cost of inventories is higher than the net realizable value, a provision for decline in value of inventories is made. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes. Net realizable value is determined on the basis of clear evidence obtained, after taking into consideration the purposes of inventories being held and effect of post balance sheet events.
Provision for decline in value of other inventories is made based on the excess of cost of inventory over its net realizable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realizable value of inventories is higher than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss for the period.
12.4 Inventory count system
The perpetual inventory system is maintained for stock system.
12.5 Amortization methods for low cost and short-lived consumable items and packaging materials
Packaging materials and low cost and short-lived consumable items are amortized using the immediate write-off method.
13. Assets held for sale
When the Group withdraw the book value of certain assets or disposal group mainly through disposal instead of continual application, the assets should be classified as held-for-sale assets. Assets or disposal group classified as held-for-sale assets should meat following conditions: (1) The current status is available for immediate distribution according to similar transactions of this category of assets or disposal group; (2) The transaction is likely to occur, i.e. the Group has made
its resolution over the distribution arrangements and acquired purchase commitment. Also the
distribution is going to be fulfilled within a year.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
13. Assets held for sale - continued
If the holding company loses control of its subsidiary for reasons like subsidiary disposal, in regardless of whether the holding company still keeps part of equity investment, once the proposed investment disposal meets the requirements of being classified as available for sale assets in the holding company's individual statement, all assets and liabilities of the subsidiary should be classified as held-for-sale in consolidated financial statement.
The group's non-current assets and disposal group are measured at the lower of book value and the net value of fair value less costs to sell. Once the book value is higher than the net value of fair value less costs to sell, the book value should be adjusted to the net value and the excess should be recognized as impairment losses and provision for held-for-sale assets impairment should be made. A gain and a reverse in the previous provision for held-for-sale assets impairment can be recognized for any increase in fair value less costs to sell at subsequent balance sheet dates, to the extent that it is not in excess of the cumulative impairment loss that has been recognized.
Non-current held-for-sale assets is not subject to depreciation and amortization. The creditor interest and other expenses of disposal group classified as held-for-sale asset should still be recognized.
Once the associate or joint venture equity investment is completely or partly classified as held-for-sale assets, the classified part of the investment is not subject to equity method measurement.
14. Long-term equity investments
14.1 Basis for determining joint control and significant influence over investee
Control is archived when the Group has the power over the investee and has rights to variable returns from its involvement with the investee; and has the ability to use its power to affect its returns. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating policy decisions relating to the activity require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. When determining whether an investing enterprise is able to exercise control or significant influence over an investee, the effect of potential voting rights of the investee (for example, warrants and convertible debts) held by the investing enterprises or other parties that are currently exercisable or convertible shall be considered.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.2 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control, the investment cost of the long-term equity investment is the attributable share of the carrying amount of the shareholders' equity of the acquiree at the date of combination. The difference between the initial investment cost and the carrying amount of cash paid, non-cash assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to retained earnings. If the consideration of the combination is satisfied by the issue of equity securities, the initial investment cost of the long-term equity investment shall be the share of party being absorbed of the owners' equity in the consolidated financial statements of the ultimate controlling party at the date of combination. The aggregate face value of the shares issued shall be accounted for as share capital. The difference between the initial investment cost and the aggregate face value of the shares issued shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to retained earnings.
For a long-term equity investment acquired through business combination not involving enterprises under common control, the investment cost of the long-term equity investment acquired is the cost of acquisition.
The absorbing party's or purchaser's intermediary expenses (fees in respect of auditing, legal services, valuation and consultancy services, etc.) and other administrative expenses attributable to the business combination are recognized in profit or loss in the periods when they are incurred. The long-term equity investment acquired otherwise than through a business combination is initially measured at its cost. When the entity is able to exercise significant influence or joint control (but not control) over an investee due to additional investment, the cost of long-term equity investments is the sum of the fair value of previously-held equity investments determined in accordance with Accounting Standard for Business Enterprises No.22 - Financial Instruments: Recognition and Measurement of (ASBE No. 22) and the additional investment cost.
14.3 Subsequent measurement and recognition of profit or loss
14.3.1 A long-term equity investment accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the Company's separate financial statements. A subsidiary is an investee that is controlled by the Group.
Under the cost method, a long-term equity investment is measured at initial investment cost. Additional or withdrawing investment would affect the cost of long-term equity investment. Investment income is recognized in the period in accordance with the attributable share of cash
dividends or profit distributions declared by the investee.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.3 Subsequent measurement and recognition of profit or loss - continued
14.3.2 A long-term equity investment accounted for using the equity method
Except associate and joint venture investment completely or partly classified as available for sale, and The Group accounts for investment in associates and joint ventures using the equity method. An associate is an entity over which the Group has significant influence and a joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost. Where the initial investment cost is less than the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, the difference is recognized in profit or loss for the period, and the cost of the long-term equity investment is adjusted accordingly.
Under the equity method, the Group recognizes its share of the other comprehensive income and net profit or loss of the investee for the period as other comprehensive income and investment income or loss respectively for the period, and the carrying amount of the long-term equity investment is adjusted accordingly. The carrying amount of the investment shall be reduced by the portion of any profit distributions or cash dividends declared by the investee that is distributed to the investing enterprise. The investing enterprise shall adjust the carrying amount of the long-term equity investment for other changes in owners' equity of the investee (other than net profits or losses, other comprehensive income and profit distribution), and include the corresponding adjustment in capital reserve. The Group recognizes its share of the investee's net profit or loss based on the fair value of the investee's individually identifiable assets at the acquisition date after making appropriate adjustments. Where the accounting policies and accounting period adopted by the investee are different from those of the investing enterprise, the investing enterprise shall adjust the financial statements of the investee to conform to its own accounting policies and accounting period, and recognize other comprehensive income and investment income or losses based on the adjusted financial statements. Unrealized profits or losses resulting from the Group's transactions and assets invested or sold that are not recognized as business transactions with its associates and joint ventures are recognized as investment income or loss to the extent that those attributable to the Group's, equity interest are eliminated. However, unrealized losses resulting from the Group's transactions with its associates and joint ventures which represent impairment losses on the transferred assets are not eliminated.
The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of its net investment in the investee are reduced to zero. Except that if the Group has incurred obligations to assume additional losses, a provision is recognized according to the obligation expected, and recorded in the investment loss for the period. Where net profits are
subsequently made by the investee, the Group resumes recognizing its share of those profits only
after its share of the profits exceeds the share of losses previously not recognized.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Long-term equity investments - continued
14.4 Disposal of long-term equity investments
On disposal of a long-term equity investment, the difference between the proceeds actually received and receivable and the carrying amount is recognized in profit or loss for the period. For long-term equity investments accounted for using the equity method, if the remaining interest after disposal is still accounted for using the equity method, other comprehensive income previously recognized for using the equity method is accounted for on the same basis as would have been required if the investee had directly disposed of related assets or liabilities, and transferred to profit or loss for the period on a pro rata basis; owners' equity recognized due to changes in other owners' equity of the investee (other than net profit or loss, other comprehensive income and profit distribution) is transferred to profit or loss for the period on a pro rata basis. For long-term equity investments accounted for using the cost method, if the remaining interest after disposal is still accounted for using the cost method, other comprehensive income previously recognized for using the equity method or in accordance with the standards for the recognition and measurement of financial instruments before obtaining the control over the investee, is accounted for on the same basis as would have been required if the investee had directly disposed of related assets or liabilities, and transferred to profit or loss for the period on a pro rata basis; changes in other owners' equity in the investee's net assets recognized under the equity method (other than net profit or loss, other comprehensive income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.
15. Investment properties
Investment property is property held to earn rentals or for capital appreciation or both. It includes a land use right that is leased out; a land use right held for transfer upon capital appreciation; and a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such investment property are included in the cost of the investment property if it is probable that economic benefits associated with an investment property will flow to the Group and the subsequent expenditures can be measured reliably, other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment property, and adopts a depreciation or amortization policy for the investment property which is consistent with that for buildings or land use rights.
When an investment property is sold, transferred, retired or damaged, the Group recognizes the amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss for the period.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
16. Fixed assets
16.1 Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and have useful lives of more than one accounting year. A fixed asset is recognized only when it is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost. Upon being restructured into a stock company, the fixed assets initially contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable that economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
16.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method starting from the month subsequent to the one in which it is ready for intended use. The useful life, estimated net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
|Category|||Estimated||Estimated||Annual|
||||useful lives||residual value (%)||depreciation rate (%)|
||Port and terminal facilities|8 - 99 years||5.00||0.96 - 11.88||
||Buildings|10 - 50 years||5.00||1.90 - 9.50||
||Machinery and equipment, furniture|3 - 20 years||5.00||4.75 - 31.67||
||and fixture and other equipment|||||||
||Motor vehicles and cargo ships|5 - 25 years||5.00||3.80 - 19.00||

 Estimated net residual value of a fixed asset is the estimated amount that the Group would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. 16.3 Other explanations
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal, the fixed asset is derecognized. When a fixed asset is sold, transferred, retired or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and
related taxes is recognized in profit or loss for the period.
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least once at each financial year-end, and account for any change
as a change in an accounting estimate.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
17. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various construction expenditures during the construction period, borrowing costs capitalized before it is ready for intended use and other relevant costs. Construction in progress is not depreciated. Construction in progress is transferred to a fixed asset when it is ready for intended use. 18. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are capitalized when expenditures for such asset and borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted abnormally and when the interruption is for a continuous period of more than 3 months. Capitalization is suspended until the acquisition, construction or production of the asset is resumed. Other borrowing costs are recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed under general-purpose borrowings, the Group determines the amount of interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings. During the capitalization period, exchange differences related to a specific-purpose borrowing denominated in foreign currency are all capitalized. Exchange differences in connection with general-purpose borrowings are recognized in profit or loss in the period in which they are incurred.
19. Intangible assets
Intangible assets include land use rights and port operating right.
An intangible asset is measured initially at cost. Upon being restructured into a stock company, the intangible assets initial contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department. When an intangible asset with a finite useful life is available for use, its original cost is amortized over its estimated useful life.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
19. Intangible assets - continued
|||||||
|-|-|-|-|-|-|
|Category||Amortization method||Estimated useful lives|Residual value (%)|
|||||(years)||
||Land use rights|Straight-line method|40 - 99||-|
||Port operating right|Straight-line method|30 - 35||-|
||Others|Straight-line method|5 - 50||-|

For an intangible asset with a finite useful life, the Group reviews the useful life and amortization method at the end of the period, and makes adjustments when necessary.
20. Impairment of long-term assets
The Group assesses at the balance sheet date whether there is any indication that the long-term equity investments, investment properties measured at cost method, construction in progress, fixed assets and intangible assets with a finite useful life may be impaired. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. Intangible assets with indefinite useful life and intangible assets not yet available for use are tested for impairment annually, irrespective of whether there is any indication that the assets may be impaired.
Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the future cash flows expected to be derived from the asset.
If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognized in profit or loss.
Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment testing, goodwill is considered together with the related assets groups, i.e., goodwill is reasonably allocated to the related assets groups or each of assets groups expected to benefit from the synergies of the combination. In testing an assets group with goodwill for impairment, an impairment loss is recognized if the recoverable amount of the assets group or sets of assets groups (including goodwill) is less than its carrying amount. The impairment loss is firstly allocated to reduce the carrying amount of any goodwill allocated to such assets group or sets of assets groups, and then to the other assets of the group pro-rata basis on the basis of the carrying amount of each asset (other than goodwill) in the group.
Once the impairment loss of above-mentioned asset is recognized, it shall not be reversed in any
subsequent period.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
21. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over the current and subsequent periods (together of more than one year). Long-term prepaid expenses are amortized using the straight-line method over the expected periods in which benefits are derived.
22. Employee benefits
22.1 The accounting treatment of short-term employee benefits
Actually occurred short-term employee benefits are recognized as liabilities, with a corresponding charge to the profit or loss for the period or in the costs of relevant assets in the accounting period in which employees provide services to the Group. Staff welfare expenses incurred by the Group are recognized in profit or loss for the period or the costs of relevant assets based on the actually occurred amounts when it actually occurred. Non-monetary staff welfare expenses are measured at fair value.
Payment made by the Group of social security contributions for employees such as premiums or contributions on medical insurance, work injury insurance and maternity insurance, etc. and payments of housing funds, as well as union running costs and employee education costs provided in accordance with relevant requirements, are calculated according to prescribed bases and percentages in determining the amount of employee benefits and recognized as relevant liabilities, with a corresponding charge to the profit or loss for the period or the costs of relevant assets in the accounting period in which employees provide services.
22.2 The accounting treatment of post-employment benefits
Post-employment benefits are classified into defined contribution plans and defined benefit plans. During the accounting period of rendering service to employees of the Group, amount which should be paid according to defined contribution plans is recognized as liabilities, and recognized in profit or loss or related costs of assets.
For defined benefit plans, the Group calculates defined benefit plan obligations using projected unit credit method and the service cost resulting from employee service in the current period is recorded in profit or loss or the cost of related assets. Defined benefit costs are categorized as follows:
• Service cost (including current service cost, past service cost, as well as gains and losses on settlements);
• Net interest of net liabilities or assets of defined benefit plan (including interest income of planned assets, interest expenses of defined benefit plan liabilities and effect of asset ceiling); and
• Changes arising from remeasurement of net liabilities or net assets of defined benefit plans
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22.2 The accounting treatment of post-employment benefits - continued
Service costs and net interest of net liabilities and net assets of defined benefit plans are recognized in profit or loss of current period or costs of related assets. Remeasurement of the net defined benefit liability (asset) (including actuarial gains and losses, the return on plan assets, excluding amounts included in net interest on the net defined benefit liability (asset), and any change in the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability (asset)) are recognized in other comprehensive income.
22.3 The accounting treatment of termination benefits
When the Group provides termination benefits to employees, employee benefit liabilities are recognized for termination benefits, with a corresponding charge to the profit or loss for the period at the earlier of: (1) when the Group cannot unilaterally withdraw the offer of termination benefits because of the termination plan or a curtailment proposal; and (2) when the Group recognizes costs or expenses related to restructuring that involves the payment of termination benefits.
23. Provisions
Provisions are recognized when the Group has a present obligation related with contingencies, it is probable that the Group will be required to settle that obligation causing an outflow of economic benefits, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at balance sheet date, taking into account the risks, uncertainties and time value of money surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows where the effect of the time value of money is material.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable should not exceed the carrying amount of provisions.
24. Revenue
The Group's revenue is mainly from the following business types:
(1) Port service;
(2) Bonded logistics service
(3) Other business such as property development and investment.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Revenue - continued
The Group recognizes revenue based on the transaction price allocated to such performance obligation when a performance obligation is satisfied, i.e. when "control" of the goods or services underlying the particular performance obligation is transferred to the customer. A performance obligation represents the commitment that a good and service that is distinct shall be transferred by the Group to the customer. Transaction price refers to the consideration that the Group is expected to charge due to the transfer of goods or services to the customer, but it does not include payments received on behalf of third parties and amounts that the Group expects to return to the customer.
If one of the following criteria is met and it is a performance obligation performed over time, the Group recognizes the revenue within a certain period of time according to the progress of the performance: (1) the customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs; (2) the customer is able to control the goods under construction in the course of the Group's performance; (3) the goods produced by the Group during the performance of the contract are irreplaceable and the Group has the right to charge for the accumulated part of the contract that has been performed so far during the whole contract period. Otherwise, the Group recognizes revenue at a certain point in time when "control" of the goods or services is transferred to the customer.
The Group adopts input method, i.e. the value of goods or services transferred to customers to determine the appropriate progress of performance. Where the progress cannot be determined reasonably, the revenue is recognized based on the amount of cost that is expected to be compensated based on the cost already incurred, until the progress of performance is reasonably determined.
Contract asset refers to the Group's right to consideration in exchange for goods or services that the Group has transferred to a customer when that right is conditioned on something other than the passage of time. The Group's unconditional (i.e., depending on the passage of time only) right to receive consideration from the customer is separately presented as receivables. Contract liabilities refers to the Group's obligation to transfer goods or services to a customer for which the Group has received consideration from the customer. Contract assets and contract liabilities under the same contract are set out on a net basis.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Revenue - continued
If the contract includes two or more performance obligations, at contract inception, the Group allocates the transaction price to single performance obligation according to relative proportion of the stand-alone selling prices of the goods or services promised by single performance obligation. However, where there is conclusive evidence that the contract discount or variable consideration is only related to one or more (not all) performance obligations in the contract, the Group shall allocate the contract discount or variable consideration to relevant one or more performance obligations. The stand-alone selling price is the price at which the Group would sell a promised good or service separately to a customer. If a stand-alone selling price is not directly observable, the Group shall consider all information that is reasonably available to the Group and maximize the use of observable inputs and apply estimates methods consistently in similar circumstances. If the contract includes significant financing component, the Group determines the transaction price based on the amount payable under the assumption that the customer pays that amount payable in cash when "control" of the goods or services is obtained by the customer. The difference between the transaction price and the contract consideration shall be amortized within the contract period using effective interest rate. If the Group expects, at contract inception, that the period between when the Group transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less, the Group needs not to consider the significant financing component.
Principal and agent
The Group determines whether it is a principal or an agent at the time of the transaction based on whether it owns the "control" of the goods or services before the transfer of such goods or services to the customer. The Group is a principal if it controls the specified good or service before that good or service is transferred to a customer, and the revenue shall be recognized based on the total consideration received or receivable; otherwise, the Group is an agent, and the revenue shall be recognized based on the amount of commission or handling fee that is expected to be charged, and such amount is determined based on the net amount of the total consideration received or receivable after deducting the prices payable to other related parties or according to the established commission amount or proportion.
Costs to fulfill a contract
If the costs incurred in fulfilling a contract are not within the scope of other standard other than new standards for revenue, the Group shall recognized an asset from the costs incurred to fulfill a contract only if those costs meet all of the following criteria: (1) the costs relate directly to a contract or to an anticipated contract that the Group can specifically identify; (2) the costs generate or enhance resources of the entity that will be used in satisfying performance obligations in the future; and (3) the costs are expected to be recovered. The asset mentioned
above shall be amortized on a basis that is consistent with the transfer to the customer of the
goods or services to which the asset relates and recognized in profit or loss for the period.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
24. Revenue - continued
Impairment of contract costs
In determination of impairment losses of assets related to contract costs, firstly impairment losses of other assets related to the contract recognized based on other relevant accounting standards; secondly, the Group shall recognized an impairment loss to the extent that the carrying amount of an asset exceeds: (1) the remaining amount of consideration that the Group expects to receive in exchange for the goods or services to which the asset relates; less; the estimated costs that relate to providing those goods or services.
The Group shall, after the impairment has been provided, recognized in profit or loss a reversal of some or all of an impairment loss previously recognized when the impairment conditions no longer exist or have improved. The increased carrying amount of the asset shall not exceed the carrying amount that would have been determined if no impairment loss had been recognized previously.
25. Government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at no consideration. A government grant is recognized only when the Group can comply with the conditions attached to the grant and the Group will receive the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable.
25.1 The accounting treatment of government grants related to assets
Government grants, such as special funds for modern logistics project and special funds for energy-saving and emission reduction of transportation, are government grants related to assets as they are all related to the construction and use of assets.
A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss over the useful life of the related asset.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Government grants - continued
25.2 The accounting treatment of government grants related to income
The Group's government grant, such as financial support funds of business tax converted to VAT and reward for energy saving, if used to compensate the related expenses or losses to be incurred in subsequent periods, is determined to be government grant relating to income.
A government grant relating to income, if used to compensate the related cost, expenses or losses to be incurred in subsequent periods, is determined as deferred income and recognized in profit or loss over the periods in which the related costs are recognized; if used to compensate the related cost, expenses or losses already incurred, is recognized immediately in profit or loss for the period.
A government grant relating to the Group's daily activities, is recognized in other income in line with the nature of economic transaction. A government grant not relating to the Group's daily activities, is recognized in non-operating income.
26. Deferred tax assets/ deferred tax liabilities
The income tax expenses include current income tax and deferred income tax.
26.1 Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
26.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognized as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognized using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets for deductible temporary differences are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized. However, for temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognized.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
26. Deferred tax assets/ deferred tax liabilities - continued
26.2 Deferred tax assets and deferred tax liabilities - continued
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates applicable in the period in which the asset is realized or the liability is settled according to tax laws.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except when they arise from transactions or events that are directly recognized in other comprehensive income or in equity, in which case they are recognized in other comprehensive income or in equity, and when they arise from business combinations, in which case they adjust the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it is no longer probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to be utilized. Any such reduction in amount is reversed when it becomes probable that sufficient taxable profits will be available.
26.3 Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected
to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net
basis.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
27. Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. 27.1 The accounting treatment of operating leases
27.1.1 The Group as lessee under operating leases
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for the period. Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are charged to profit or loss in the period in which they are actually incurred.
27.1.2 The Group as lessor under operating leases
Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs with more than an insignificant amount are capitalized when incurred, and are recognized in profit or loss on the same basis as rental income over the lease term. Other initial direct costs with an insignificant amount are charged in profit or loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the period in which they actually arise.
28. Discontinued operation
Discontinued operation refers to the separately identifiable components that have been disposed of or classified as held for sale and meet one of the following conditions:
(1) The component represents an independent main business or a major business area; (2) This component is a part of a related plan that intends to dispose an independent main business or a separate main operating area;
(3) This component is a subsidiary acquired exclusively for resale.
29. Safety Production Cost
According to the Administrative Rules on Provision and Use of Enterprise Safety Production Cost jointly issued by the Ministry of Finance and the State Administration of Work Safety on 14 February 2012 (filed as Cai Qi[2012] No. 16), safety production cost set aside by the Group is directly included in the cost of relevant products or recognized in profit or loss for the period, as well as the special reserve. When safety production cost set aside is utilized, if the costs incurred can be categorized as expenditure, the costs incurred should be charged against the special reserve. If the costs set aside are used to build up fixed assets, the costs should be charged to construction in progress, and reclassified to fixed assets when the safety projects are ready for intended use. Meantime, expenditures in building up fixed assets are directly charged against the special reserve
with the accumulated depreciation recognized at the same amount. Depreciation will not be made
in the future period on such fixed assets.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
30. Critical judgments in applying accounting policies and key assumptions and uncertainties in accounting estimates
In the application of accounting policies as set out in Note (III), the Company is required to make judgments, estimates and assumptions about the carrying amounts of items in the financial statements that cannot be measured accurately, due to the internal uncertainty of the operating activities. These judgments, estimates and assumptions are based on historical experiences of the Company's management as well as other factors that are considered to be relevant. Actual results may differ from these estimates.
The Company regularly reviews the judgments, estimates and assumptions on a going concern basis. Changes in accounting estimates which only affect the current period should be recognized in current period; changes which not only affect the current but the future periods should be recognized in current and future periods. At the balance sheet date, key assumptions and uncertainties that are likely to lead to significant adjustments to the book values of assets and liabilities in the future are:
Goodwill impairment
For the purpose of impairment testing, the present value of the expected future cash flows of the assets group or portfolio including goodwill shall be calculated, and such expected future cash flows shall be estimated. Meantime, a pre-tax rate shall be determined that should reflect the time value of money on the current market and the specific interest risks.
Recognition of deferred tax
The Group calculates and makes provision for deferred income tax liabilities according to the profit distribution plan of subsidiaries, associates and the joint ventures subject to the related law. For retained earnings which are not allocated by the investment company, since the profits will be used to invest the company's daily operation and future development, no deferred income tax liabilities are recognized. If the actually distributed profits in the future are more or less than those expected, corresponding deferred tax liabilities will be recognized or reversed at the earlier of profits distribution date and the declaration date, in the profit and loss of the current period. Deferred tax assets are recognized based on the deductible temporary difference and the corresponding tax rate, to the extent that it has become probable that future taxable profit will be available for the deductible temporary difference. If in the future the actual taxable income does not coincide with the amount currently expected, the deferred tax assets resulting will be recognized or reversed in the period when actually incurred, in profit or loss.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Changes in significant accounting policies and accounting estimates
The Group has adopted the Accounting Standards for Business Enterprises No.22– Recognition and Measurement of Financial Instruments (Cai Kuai[2017] No. 7), the Accounting Standards for Business EnterprisesNo.23—Transfer of Financial Assets (Cai Kuai[2017] No. 8), the Accounting Standards for Business Enterprises No.24– Hedging Accounting (Cai Kuai[2017] No. 9) and the Accounting Standards for Business Enterprises No.37– Presentation of Financial Instruments (Cai Kuai[2017] No. 14) (the four standards mentioned above are collectively referred to as "New Standards of Financial Instruments" while the "Original Revenue Standard" refers to the standards of financial instruments prior to amendment.) since 1 January 2018. At the same time, the Group has adopted the New Revenue Standards revised by MoF in 2017 since 1 January 2018.
(1) New Standards for Revenue
The New Standards for Revenue have introduced the 5-step method for recognition and measurement of revenue and added more instructions on specific transactions (or events). The accounting policies for recognition and measurement of revenue is referred to Note III 24. The New Standards for Revenue require the entity to adjust the retained earnings at the beginning of initial adoption (i.e. 1 January 2018) of the new standards for the cumulative affected figures and amounts of other relative items in the financial statements, and not to adjust information in comparable period. At the adoption of New Standards Revenue, the Group solely adjusts the cumulative affected figures in contract not yet been completed at the initial adoption date. Compared to Original Standards for Revenue, effects of implementation of New Standards for Revenue on relevant items of the consolidated financial statements for the year are as follows: Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item||31 December 2017||Reclassification|1 January 2018|
|Current assets:||||||
|Notes and accounts receivable|871,370,660.21||37,956,002.42||909,326,662.63|
|Current liabilities:||||||
|Receipts in advance|106,944,420.75||(74,984,669.58)||31,959,751.17|
|Contract liabilities|||43,926,190.25||43,926,190.25|
|Other payables|6,544,589,530.18||25,972,056.78||6,570,561,586.96|
|Non-current liabilities:||||||
|Provisions|-||50,577,924.97||50,577,924.97|
|Deferred income|222,857,800.33||(36,366,124.28)||186,491,676.05|
|Other non-current liabilities|54,763,901.68||28,830,624.28||83,594,525.96|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 31. Changes in significant accounting policies and accounting estimates - continued (1) New Standards for Revenue - continued
Compared to Original Standards for Revenue, effects of implementation of New Standards for Revenue on relevant items of the Company's financial statements for the year are as follows: RMB
|||||||
|-|-|-|-|-|-|
|Item||31 December 2017||Reclassification|1 January 2018|
|Current liabilities:||||||
|Receipts in advance|98,400.00||(98,400.00)||-|
|Contract liabilities|||98,400.00||98,400.00|

 (2) New Standards of Financial Instruments
In terms of the classification and measurement of financial assets, in accordance with the New Standards of Financial Instruments, an entity shall classify financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss on the basis of the contractual cash flow characteristics of the financial assets and the entity's business model for managing the financial assets. The original classifications of financial assets, such as loans and receivables, held-to-maturity investments and-available-for-sale financial assets in the Original Standards of Financial Instruments are no longer adopted. For investments in non-tradable equity instruments, the entity shall generally classify them as measured at fair value through profit or loss, and for investments in unquoted equity instruments, the entity is allowed to designate them as measured at fair value through other comprehensive income provided that such designation is irrevocable and the accumulated changes in fair value initially recorded in other comprehensive income cannot be charged forward to profit or loss at disposal.
In terms of the impairment of financial assets, financial assets classified as at amortized cost, financial assets classified as at fair value through other comprehensive profit, and contract assets are within the scope of New Standards of Financial Instruments. The New Standards of Financial Instruments require to replace the previous incurred credit loss model with the expected credit loss model. As required by the new impairment model, a three-phase model shall be adopted, so that provisions for credit losses will be recognized as the expected credit losses within 12 months or over the entire duration based on whether credit risks of relevant financial instruments have been increased significantly from the initial recognition. Provisions for impairments of accounts receivable, contract assets, and leasing receivables can be calculated at the expected credit losses over the entire duration.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Changes in significant accounting policies and accounting estimates - continued (2) New Standards of Financial Instruments - continued
The Group made retrospective adjustment according to the New Standards of Financial Instruments for the recognition and measurement of financial instruments prior to 1 January 2018. The Group has not adjusted the comparative financial information. For the differences between the original carrying amount of financial instruments and the carrying amount of financial instruments measured by the New Standards of Financial Instruments, the Group adjusted the retained earnings or other comprehensive income at 1 January 2018. As at 1 January 2018, impacts of the New Standards of Financial Instruments to the consolidated financial statements are set out as follows.
Summary of effects on the Group's initial implementation of New Standards of Financial Instruments since 1 January 2018
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item||Cbstin2|arrying amount impact||Effects of implementation of New Standards for Financial Instruments on consolidated balance sheet|||||Carrying amount impact onthe New Standards ofFinancial Instruments (1January 2018)|
||||ased on the original||Reclassification||Remeasurement||||
||||andards of financial||||||||
||||struments (31 December||Transferred from available-for-sale||Expected credit||From measured at cost to||
||||017)||financial assets||losses||measured at fair value||
||Other receivables|938,786,831.94||-||(207,406.98)||-||938,579,424.96|
||Other current assets|1,200,476,091.74||-||(1,029,478.05)||-||1,199,446,613.69|
||Available-for-sale|3,083,581,935.68||(3,083,581,935.68)||-||-||-|
||financial assets (Note)||||||||||
||Long-term receivables|9,669,034.35||-||(9,669.03)||-||9,659,365.32|
||Investments in other|-||109,999,328.79||-||123,484,640.00||233,483,968.79|
||equity instruments||||||||||
||(Note)||||||||||
||Other non-current|-||2,973,582,606.89||-||8,884,343.34||2,982,466,950.23|
||financial assets (Note)||||||||||
||Deferred tax liabilities|1,984,303,944.46||-||-||30,871,160.00||2,015,175,104.46|
||Other comprehensive|(7,064,646.43)||(815,170,041.97)||-||92,613,480.00||(729,621,208.40)|
||income||||||||||
||Retained profits|8,466,307,917.47||815,170,041.97||(1,246,554.06)||2,399,850.26||9,282,631,255.64|
||Minority interest|45,514,555,953.29||-||-||6,484,493.08||45,521,040,446.37|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Changes in significant accounting policies and accounting estimates - continued (2) New Standards of Financial Instruments - continued
Summary of effects on the Company's initial implementation of New Standards of Financial Instruments since 1 January 2018
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item||Carrying amount impactbased on the originalstandards of financialinstruments (31 December2017)|Ef|fects of implementation of New Standards for Financial Instruments on consolidated balance sheet|||||Carrying amount impact on theNew Standards of FinancialInstruments (1 January 2018)|
|||||Reclassification||Remeasurement||||
||||Transferred from available-for-salefinancial assets||Expected creditlosses|||Transferred from||
|||||||||available-for-sale financial||
|||||||||assets||
||Available-for-sale|23,759,200.00|(23,759,200.00)||-||-||-|
||financial assets|||||||||
||Investments in other|-|23,759,200.00||-||123,484,640.00||147,243,840.00|
||equity instruments|||||||||
||(Note)|||||||||
||Deferred tax liabilities|2,182,500.00|-||-||30,871,160.00||33,053,660.00|
||Other comprehensive|6,647,500.00|-||-||92,613,480.00||99,260,980.00|
||income|||||||||

Note: The Group has implemented the New Standards of Financial Instruments since 1 January 2018. The original available-for-sale financial assets are reclassified as financial assets at fair value through other comprehensive income, and are remeasured at fair value on 1 January, thereby adjusting the investments in other equity instruments by RMB
147,243,840.00.
Reconciliation of the Group's credit loss provision at 1 January 2018
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item|||Provision for credit loss|Remeasurement ofexpected lossprovision||Impairment provision|
||||recognized based on|||recognized based on|
||||Original Standards of|||New Standards of|
||||Financial Instruments|||Financial Instruments|
||Provision for credit loss for financial assets:||||||
||Provision for credit loss for other receivables|24,816,684.83||207,406.98|25,024,091.81||
||Including: Provision for credit loss for|-||14,145.23|14,145.23||
||interest receivable||||||
||Provision for credit loss for dividend|-||193,261.75|193,261.75||
||receivable||||||
||Provision for credit loss for other receivable|24,816,684.83||-|24,816,684.83||
||Provision for credit loss for other current|-||1,029,478.05|1,029,478.05||
||assets||||||
||Provision for credit loss for long-term|-||9,669.03|9,669.03||
||receivables||||||
||Total|24,816,684.83||1,246,554.06|26,063,238.89||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
31. Changes in significant accounting policies and accounting estimates - continued (3) Presentation of financial statements
The Group started adopting the Notice of the Revised Format of 2018 Financial Statements for General Business Enterprise (Cai Kuai (2018) No. 15, hereinafter referred to as the "Cai Kuai No.15 Document") released by the MoF on 15 June 2018 since the preparation of financial statements for the year of 2018. Cai Kuai No.15 Document revised the presenting accounts in the balance sheet and income statement, added line items of "Notes and Accounts Receivable", "Notes and Accounts Payable" and "Research and Development Expenses", revised the presenting contents of the line items of "Other Receivables", "Fixed Assets", "Construction in Progress", "Other Payables", "Long-term Payables" and "Administrative Expenses", removed the line items of "Notes Receivable", "Accounts Receivable", "Dividends Receivable", "Interest Receivable", "Disposal of Fixed Assets", "Engineering Materials", "Notes Payable", "Accounts Payable", "Interest Payable", "Dividends Payable" and "Special Payables", added line items of "Including: Interest Expenses" and "Interest Income" under "Financial Expenses", and adjusted the presenting location of some accounts in the income statement. The Company has accounted for the above changes in presenting accounts retrospectively, and adjusted comparable data for prior year. Above changes in accounting policies are approved in the 3rd session of the 9th board of directors meeting of the Company.
32． Changes in significant accounting estimates
(1) Changes in accounting estimates and reasons
As at 27 November 2018, the Company held the 8th temporary session of the 9th board of directors meeting in 2018 and the 5th temporary session of the 9th board of supervisors meeting in 2018, and reviewed and approved the Proposal on Changes in Accounting Estimates of Fixed Assets. The Company reviewed the estimated useful life and estimated net residual value of fixed assets based on the current performance and use status of fixed assets. In order to more objectively and fairly reflect the financial position and operating results of the Group, it is decided to adjust the depreciation years of the Group's fixed assets and the net residual value rate of all fixed assets within the scope of the Group's consolidation(expected new subsidiaries which changes in the scope of consolidation). The details of adjustments are as follows:
(a) Adjustments of fixed assets in depreciation years
||||
|-|-|-|
|Category|Useful life before adjustment|Useful life after adjustment|
|Port and wharf equipment|5 – 50 years|5 - 40 years|
|Buildings|5 - 40 years|10 - 30 years|
|Machinery equipment, furniture and other equipment|5 - 15 years|3 - 20 years|
|Vehicles and vessels|5 - 20 years|5 - 25 years|

(b) The net residual value of fixed assets is adjusted from10% to5%.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
III. SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued32． Changes in significant accounting estimates - continued
(2) Financial effect of changes in accounting estimates
The above adjustments of fixed assets in depreciation years and net residual rate have been implemented since December 1, 2018.
According to the "Accounting Standards for Business Enterprises No. 28 - Changes in Accounting Policies and Accounting Estimates, and Corrections of Errors", the adjustments of fixed assets in the depreciation years and the net residual value rate are changes in accounting estimates, and shall be treated using the prospective approach, which is not required to make retrospective adjustments. Financial positions and operating results of the Group in prior years will not be affected.
The Group increased the depreciation expense of fixed assets in 2018 by RMB 41,405,189.48, reduced the consolidated net profit in 2018 by RMB 38,076,037.04, and reduced the
unconsolidated net assets by RMB 20,076,037.04 in the end of 2018, due to the above changes in accounting estimates.
IV. TAXES
1. Major taxes and tax rates
||||
|-|-|-|
|Taxes|Tax basis|Tax rate|
||Taxable income|16.5%-34% (Note1)|
|Enterprise income tax|||
||Dividend income tax|5%, 10%, 25% (Note2)|
||Income from sale of goods (Note 4)|10%-17%|
||Income from transportation, loading and unloading business andpart of modern service industries|6%|
|Value-added Tax|||
|("VAT") (Note 3)|||
||Income from sale of real estate, property management, real estatelease, etc.|5%|
|Social contribution|Income|0.65%-7.6%|
|tax (Note 5)|||
|Deed tax|Land use right and property transfer amount|3%-5%|
|Property tax|70% of cost of property or rental income|1.2% or 12%|
|City maintenance and|VAT paid|1%-7%|
|construction tax|||
|Education surtax|VAT paid|3%|

 Note 1: The Group's enterprise income tax is calculated based on the current tax rate stipulated by local tax laws. Among them, the Company are subject to an enterprise income tax rate of
25%, the subsidiaries set up in Hong Kong are subject to an enterprise income tax rate of
16.5%, the subsidiaries set up in China are subject to an enterprise income tax rate of25%,
and the other overseas subsidiaries are subject to enterprise income tax rates between28%
and34%.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
IV. TAXES - continued
1. Major taxes and tax rates - continued
Note 2: Foreign investors who receive dividends of profits from Chinese subsidiaries in 2008 and thereafter generally shall pay withholding income tax at a rate of10% in accordance with the relevant provisions of the PRC enterprise income tax. For companies incorporated in certain regions (including Hong Kong and Singapore), if the companies are actual owners holding more than25% interest in the subsidiaries in China, they will enjoy a preferential tax rate of5%.
The Company obtains dividends distributed by overseas subsidiaries and should pay enterprise income tax at a rate of25% in accordance with relevant Chinese tax laws. The Company obtains taxable income outside of China, and the amount of income tax that has been paid abroad can be offset with the current taxable amount. The credit limit is the taxable amount calculated in accordance with the provisions of the Enterprise Income Tax Law.
Note 3: The VAT amount is the balance of the output tax less the deductible input tax, and the output tax is calculated in accordance with the sales income and the corresponding tax rate stipulated in the relevant tax laws of China.
Note 4: Pursuant to the Notice of the Ministry of Finance and the State Administration of Taxation on the Adjustment of VAT issued by the Ministry of Finance and the State Administration of Taxation (Cai Shui[2018] No. 32 Document), effective from 1 May 2018, the taxable sales or imports of goods at original applicable VAT rate of17% and11% shall be subject to a VAT rate of16% and10% respectively.
Note 5: The social contribution tax is the tax paid by the overseas subsidiaries of the Group to the local government.
2. Tax preference
Some subsidiaries of the Group in China are subject to tax preference of "3-year exemption followed by 3-year half reduction".
Some subsidiaries of the Group in China are recognized as high-tech enterprises or encouraged industrial enterprises in the region and are subject to an enterprise income tax rate of15%. The Group's subsidiaries outside China may be subject to enterprise income tax preference in accordance with relevant local tax policies.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Cash|349,650.07|598,357.70|
|RMB|77,877.30|124,499.32|
|USD|29,909.14|35,736.85|
|HKD|57,342.60|45,542.09|
|BRL|11,402.34|-|
|Others|173,118.69|392,579.44|
|Bank deposit (Note1)|6,118,508,644.13|7,716,378,695.65|
|RMB|3,401,709,911.75|4,349,905,231.94|
|USD|1,326,034,833.97|795,546,066.36|
|HKD|432,603,546.37|2,330,366,650.86|
|EUR|359,682,134.06|218,799,953.75|
|BRL|539,493,644.44|-|
|Others|58,984,573.54|21,760,792.74|
|Other cash and bank balances (Note 2)|951,450,410.55|12,483,029.40|
|RMB|951,450,410.55|12,483,029.40|
|Total|7,070,308,704.75|7,729,460,082.75|
|Including: The total amount of funds deposited overseas|2,809,011,079.47|3,108,783,498.70|

 Note 1: The bank deposits of the Group deposited overseas and restricted for remittance to China at the end of the year totaled RMB 1,002,027,200.00.
Note 2: The structured deposits that cannot be readily withdrawn on demand in the other cash and bank balances of the Group totaled RMB 695,000,000.00, the structured deposits that can be readily withdrawn on demand totaled RMB 240,119,139.15, the deposit totaled RMB 15,458,463.23, and the balance of the margin maintenance account was RMB 872,808.17. 2. Notes and accounts receivable
(1) Summary of notes and accounts receivable
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|||||(restated)|
||Notes receivable|11,608,669.43|16,910,891.14||
||Accounts receivable|1,109,230,503.08|892,415,771.49||
||Total|1,120,839,172.51|909,326,662.63||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 2. Notes and accounts receivable - continued
(2) Notes receivable
(a) Classification of notes receivable
Unit: RMB
||||||
|-|-|-|-|-|
|Category||Closing balance||Opening balance(restated)|
||Bank acceptance|11,608,669.43|16,910,891.14||
||Less: Provision for credit losses|-|-||
||Carrying amount|11,608,669.43|16,910,891.14||

 (b) As at 31 December 2018, there are no notes receivable pledged.
(c) As at 31 December 2018, there are no notes receivable endorsed or discounted which are not yet due at the balance sheet date.
(d) As at 31 December 2018, there are no notes reclassified to accounts receivable due to the drawers' inability to settle the note.
(3) Accounts receivable
(a) Disclosure of accounts receivable by categories
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Credit rating||Expected creditloss rate (%)|||Closing balance|||||
||||||Carrying amount||Provision||Book value|
||A||0.00-0.10|323,319,258.26||32,331.93||323,286,926.33||
||B||0.10-0.30|614,037,476.13||1,144,038.38||612,893,437.75||
||C||0.30-50.00|155,462,941.77||2,079,476.01||153,383,465.76||
||D||50.00-100.00|59,928,872.52||40,262,199.28||19,666,673.24||
||Total|||1,152,748,548.68||43,518,045.60||1,109,230,503.08||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 2. Notes and accounts receivable - continued
(3) Accounts receivable - continued
(b) Changes in provision for credit loss of accounts receivable
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item|||2018||||
|||L|ifetime expected credit loss||Lifetime expected credit loss|Total|
||||(not credit-impaired)||(credit-impaired)||
||At 31 December 2017|-||43,295,671.74||43,295,671.74|
|e|Remeasurement of provision for|-||-||-|
||xpected credit loss||||||
||At 1 January 2018|-||43,295,671.74||43,295,671.74|
|f|Provision for expected credit loss|3,895,740.28||289,954.60||4,185,694.88|
||or the year||||||
|t|Reversal of expected credit loss for|(3,780,327.65)||(3,507,559.23)||(7,287,886.88)|
||he year||||||
|c|Effect of changes in the scope of|3,572,789.46||-||3,572,789.46|
||onsolidation||||||
|e|Effect of changes in foreign|(432,355.77)||184,132.17||(248,223.60)|
||xchange||||||
||At 31 December 2018|3,255,846.32||40,262,199.28||43,518,045.60|

 (c) The top five balances of accounts receivable classified by debtor
Unit: RMB
|||||
|-|-|-|-|
||||Proportion of|
||||the amount to|
|Name of customer|Carrying amount|Aging|the total|
||||accounts|
||||receivable (%)|
||90,579,511.81|More than 1 year but notexceeding 2 years and more than3 years|7.86|
|Client A||||
||69,081,097.25|More than 1 year but notexceeding 2 years, more than 2year but not exceeding 3 years|5.99|
|Client B||||
||45,161,278.00|More than 1 year but notexceeding 2 years, more than 2year but not exceeding 3 years,more than 3 years|3.92|
|Client C||||
||38,820,531.88|More than 1 year but notexceeding 2 years|3.37|
|Client D||||
||34,756,078.85|More than 1 year but notexceeding 2 years|3.02|
|Client E||||
|Total|278,398,497.79||24.16|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 3. Prepayments
(1) Aging analysis of prepayment
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance (restated)||
|Aging||Proportion||Proportion|
||Amount|(%)|Amount|(%)|
|Within 1 year|124,276,781.51|99.90|71,176,428.52|99.32|
|More than 1 year but not exceeding 2 years|4,000.00|-|367,773.99|0.51|
|More than 2 years but not exceeding 3 years|81.36|-|-|-|
|More than 3 years|124,000.00|0.10|124,000.00|0.17|
|Total|124,404,862.87|100.00|71,668,202.51|100.00|

 (2) The Group has no significant prepayments aged more than one year.
(3) The top five balances of prepayments classified by entities
Unit: RMB
|||||
|-|-|-|-|
||||Proportion of the closing|
||Relationship with the|||
|Entities|||balance to the total|
||Company|||
|||Closing balance|prepayments (%)|
|Sri Lanka Ports Authority|Non-related party|35,488,756.51|28.53|
|Judicial Insurance|Non-related party|8,694,880.32|6.99|
|Shenzhen Administration of Transportation and|Non-related party|6,030,000.00|4.85|
|Public Services||||
|Saham Assurance Togo S.A.|Non-related party|4,571,510.40|3.67|
|Shenzhen Jet Technology Co., Ltd.|Non-related party|3,829,746.60|3.08|
|Total||58,614,893.83|47.12|

 4. Other receivables
(1) Summary of other receivables
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|||||(restated)|
||Interest receivable|33,041,147.73|14,131,083.11||
||Dividend receivable|259,804,145.16|193,068,488.25||
||Other receivables|506,713,933.56|731,379,853.60||
||Total|799,559,226.45|938,579,424.96||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 4. Other receivables - continued
(2) Interest receivable
(a) Classification of interest receivable
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|||||(restated)|
||Interest receivable from related parties|25,986,030.98|7,002,104.12||
||Others|7,088,190.97|7,143,124.22||
||Total|33,074,221.95|14,145,228.34||
||Less: Provision for credit loss|33,074.22|14,145.23||
||Book value|33,041,147.73|14,131,083.11||

 (b) As at 31 December 2018, the Group has no significant overdue interest.
(3) Dividend receivable
(a) Presentation of dividend receivable
Unit: RMB
||||||
|-|-|-|-|-|
|Name of investee||Closing balance||Opening balance|
|||||(restated)|
||China Nanshan Development (Group) Incorporation|175,692,500.00|193,261,750.00||
||("Nanshan Group")||||
||Shanghai International Port (Group) Co., Ltd.|50,118,027.14|-||
||Qingdao Qianwan United Container Terminal Co., Lt.|25,000,000.00|-||
||Zhanjiang Port (Group) Co., Ltd.|9,253,682.23|-||
||Total|260,064,209.37|193,261,750.00||
||Less: Provision for credit loss|260,064.21|193,261.75||
||Book value|259,804,145.16|193,068,488.25||

 (b) Significant dividend receivable aged more than 1 year
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Name of investee||Closing balance||Aging||Why unrecovered||Impaired or not|
|Nanshan Group||70,277,000.00||More than 1 yearbut not exceeding 2years||Undergoing relevantformalities andexpected to berecovered at the endof 2019||Not||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 4. Other receivables - continued
(4) Other receivables
(a) Disclosure of other receivables by categories
As part of the Group's credit risk management, the Group conducts internal credit ratings for its customers and determines the expected loss rate for other receivables for each rating. Such expected average loss rates are based on actual historical impairments and taking into account the current and future economic conditions.
As at 31 December 2018, the credit risk and expected credit loss of other receivables of each category of customers are presented as below:
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Credit rating||Expectedcredit lossrate (%)|Closing balance|||||
||||Expected creditloss in 12 months||Lifetime expected|Lifetime expected creditloss (credit-impaired)|Total|
||||||credit loss (not|||
||||||credit-impaired)|||
||A|0.00-0.10|-|-||-|-|
||B|0.10-0.30|506,719,623.66|-||-|506,719,623.66|
||C|0.30-50.00|-|-||-|-|
||D|50.00-100.00|-|-||35,596,931.73|35,596,931.73|
||Carrying amount||506,719,623.66|-||35,596,931.73|542,316,555.39|
||Provision for||5,690.10|-||35,596,931.73|35,602,621.83|
||credit loss|||||||
||Book value||506,713,933.56|-||-|506,713,933.56|

 (b) Changes in provision for credit loss of other receivables
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item|||2018||||||
|||Expected credit lossin 12 months|||Lifetime expectedcredit loss (notcredit-impaired)||Lifetime expected|Total|
||||||||credit loss||
||||||||(credit-impaired)||
||At 31 December 2017|-||-||24,816,684.83||24,816,684.83|
|f|Remeasurement of provision|-||-||-||-|
||or expected credit loss||||||||
||At 1 January 2018|-||-||24,816,684.83||24,816,684.83|
|Pl|rovision for expected credit|5,690.10||-||9,955,180.00||9,960,870.10|
||oss for the year||||||||
|f|Reversal of expected credit loss|-||-||(200,000.00)||(200,000.00)|
||or the year||||||||
|o|Effect of changes in the scope|-||-||1,020,000.00||1,020,000.00|
||f consolidation||||||||
|e|Effect of changes in foreign|-||-||5,066.90||5,066.90|
||xchange||||||||
||At 31 December 2018|5,690.10||-||35,596,931.73||35,602,621.83|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 4. Other receivables - continued
(4) Other receivables– continued
(c) Other payables presented by the nature
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance (restated)|
|Operation compensation(Note)|176,625,857.32||400,848,897.19||
|Temporary payments|187,153,302.95||130,219,643.59||
|Deposits|39,657,003.56||14,149,471.86||
|Others|138,880,391.56||210,978,525.79||
|Total|542,316,555.39||756,196,538.43||
|Less: Provision for credit loss|35,602,621.83||24,816,684.83||
|Book value|506,713,933.56||731,379,853.60||

 Note: It is the compensation paid by the holding company of the non-controlling shareholder of the non-wholly owned subsidiary of the Group for the operation of the subsidiary. (d) There are no other receivables that have been written off in 2018.
(e) The top five balances of other receivable classified by debtor
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of theamount to theother receivable(%)||
||||||Bad debt|
|Name of customer|Nature|Closing balance|Aging|||
||||||provision|
||Operationcompensation|175,997,722.02|More than 2 yearsbut not exceeding3 years (inclusive)|32.45|-|
|Global Terminal Limited||||||
||Temporarypayments|59,975,890.00|More than 3 years|11.06|-|
|Chu Kong River Trade Terminal Co., Ltd.||||||
||Temporarypayments|43,796,162.41|More than 3 years|8.08|-|
|Shenzhen Qianhaiwan Bonded Port Area||||||
||Temporarypayments|34,300,000.00|More than 3 years|6.32|-|
|Tianjin Haitian Bonded Logistics Co., Ltd.||||||
||Temporarypayments|24,411,770.72|More than 3 years|4.50|-|
|Port de Djibouti S.A.||||||
|Total||338,481,545.15||62.41|-|

 5. Inventories
(1) Categories of inventories
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance (restated)|||
|||Provision for||Carryingamount|Provision for||
|Item|Carrying||||||
|||decline in value|Book value||decline in value|Book value|
||amount||||||
|||of inventories|||of inventories||
|Raw materials|89,572,663.06|2,584,953.53|86,987,709.53|68,729,097.33|2,793,815.04|65,935,282.29|
|Finished goods|4,629,610.81|-|4,629,610.81|100,509.49|-|100,509.49|
|Others|16,949,949.68|-|16,949,949.68|16,753,490.44|-|16,753,490.44|
|Total|111,152,223.55|2,584,953.53|108,567,270.02|85,583,097.26|2,793,815.04|82,789,282.22|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 5. Inventories - continued
(2) Provision for decline in value of inventories
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Opening balance||DecreaseReversal Write-off||Closing|
|Item||Provision||||
||(restated)|||Write-off|balance|
|Raw materials|2,793,815.04|-|-|208,861.51|2,584,953.53|

 (3) As at 31 December 2018, the Group has no capitalized borrowing cost in the balance of inventories.
6. Assets held for sale
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Carrying amount at||Fair value at||Estimated|Schedule|
|||the end of the||the end of the||disposal||
|||year||year||expenses||
|Long-term assets held for sale|115,356,162.94||216,379,774.36||-||Removal before 29June 2019|
|Less: Provision for impairment of|-|||||||
|assets held for sale||||||||
|Carrying amount|115,356,162.94|||||||

Note: It is the land with an area about 133.61 mu and the attached buildings on the east side of Zhuchi Deepwater Port on the south side of Zhongshan East Road in Shantou City held by the Company's subsidiary Shantou CMPort Group Co., Ltd. (hereinafter referred to as "Shantou CMPort"). On 29 December 2018, Shantou Land Reserve Center signed a land acquisition agreement with Shantou CMPort, which stipulated that Shantou CMPort should transfer the above-mentioned land and attached buildings to Shantou Land Reserve Center at RMB 216,379,774.36, and the transfer of the above-mentioned land and attached buildings should be completed within 6 months after the agreement is signed.
7. Other current assets
Unit: RMB
||||
|-|-|-|
|||Opening|
|Item|Closing balance||
|||balance(restated)|
|Loan to the associates of related parties (Note 1)|1,029,478,047.00|980,134,545.00|
|Prepaid taxes|7,872,157.38|978,566.31|
|Entrusted loans|-|120,000,000.00|
|Others (Note 2)|159,100,462.79|99,362,980.43|
|Total|1,196,450,667.17|1,200,476,091.74|
|Less: Provision for credit loss|1,029,478.05|1,029,478.05|
|Book value|1,195,421,189.12|1,199,446,613.69|

 Note 1: The closing balance is the Group's loan to Khor Ambado FZCo, an associate of China
Merchants Group Co., Ltd. (hereinafter referred to as "China Merchants Group"), which
is a floating rate loan due within one year, and is secured with the interests of associates
of the holding shareholder of Khor Ambado FZCo.
Note 2: Mainly for the year-end retained VAT amount of subsidiaries in China.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 8. Long-term receivables
(1) Long-term receivables
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance (restated)|||
|Item||Provision for||Carrying|Provision for||
||Carrying amount||Book value|||Book value|
|||credit loss||amount|credit loss||
|Advances to|793,840,080.19|793,840.08|793,046,240.11|9,669,034.35|9,669.03|9,659,365.32|
|shareholders|||||||

(2) There are no long-term receivables derecognized due to the transfer of financial assets at the end of the year.
(3) There are no assets and liabilities arising from the transfer and further involvement of long-term receivables at the end of the year.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
9. Long-term equity investments
Unit: RMB
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investees||Accounting method|1 January 2018(restated)|Effect ofchanges inthe scope ofconsolidation||Changes of this year|||||||||31 December 2018|Closing value ofprovision forimpairment|
||||||Increase||Decrease|Investment profitor loss under equitymethod|Reconcilingitems from othercomprehensiveincome|Other equitymovements|Cash dividends orprofits announcedof issuance|Provisionforimpairment||Effect oftranslation offinancial|||
|||||||||||||||statementsdenominated in|||
|||||||||||||||foreign|||
|||||||||||||||currencies|||
|I.|Joint ventures||||||||||||||||
|Euro-Asia Oceangate S.à r.l.||Equitymethod|2,543,905,022.59|-|-||-|108,552,693.45|31,873.27|-|111,712,525.45|-|128,082,970.46||2,668,860,034.32|-|
|Port of Newcastle (Note1)||Equitymethod|-|-|2,160,442,453.52||-|8,870,390.98|(5,640,777.39)|-|44,549,625.54|-|3,231,523.18||2,122,353,964.75|-|
|Zhanjiang Port（Group) Co., Ltd.||Equitymethod|2,053,843,683.66|-|-||-|(36,596,428.75)|-|-|9,740,718.14|-|-||2,007,506,536.77|-|
|QT|ingdao Qianwan United Container|Equitymethod|1,523,008,583.00|-|-||-|141,704,248.41|-|(2,550,500.00)|150,000,000.00|-|-||1,512,162,331.41|-|
||erminal Co., Lt.||||||||||||||||
|Laizhou Laiyin Port Business Co., Ltd.||Equitymethod|783,668,303.84|-|-||-|48,450,765.57|-|-|38,562,004.83|-|-||793,557,064.58|-|
|Others||Equitymethod|2,029,488,434.19|-|6,964,120.00||-|158,922,580.81|-|-|76,500,000.00|-|6,987,087.43||2,125,862,222.43|-|
|S|ubtotal||8,933,914,027.28|-|2,167,406,573.52||-|429,904,250.47|(5,608,904.12)|(2,550,500.00)|431,064,873.96|-|138,301,581.07||11,230,302,154.26|-|
|II|. Associates||||||||||||||||
|SL(|hanghai International Port (Group) Co.,|Equitymethod|20,140,460,412.59|-|453,700,695.53||-|2,571,370,986.64|(99,859,568.82)|180,954,063.75|1,059,194,508.74|-|127,990.00||22,187,560,070.95|-|
||td.||||||||||||||||
||A Share) (Note 2)||||||||||||||||
|Nanshan Group||Equitymethod|3,437,393,142.72|-|-||-|220,478,175.60|(16,230,971.37)|1,530,681,674.94|111,041,999.99|-|-||5,061,280,021.90|-|
|Terminal Link SAS||Equitymethod|3,563,936,186.34|-|-||-|357,885,181.99|2,954,661.32|1,505,998.13|15,671,554.15|-|22,649,011.63||3,933,259,485.26|-|
|DS|alian Port Co., Ltd.(A Share and H|Equitymethod|3,188,107,183.18|-|-||-|112,882,708.11|(4,941,315.60)|47,470.88|62,438,928.00|-|(29,775,775.90)||3,203,881,342.67|647,382,998.60|
||hare)||||||||||||||||
|CI|hina Merchants Hainan Development|Equitymethod|-|-|525,000,000.00||-|-|-|-|-|-|-||525,000,000.00|-|
||nvestment Co., Ltd. (Note 3)||||||||||||||||
|Others||Equitymethod|3,897,038,855.37|-|1,000,000.00||-|221,343,235.79|(13,426,099.03)|26,900,981.70|290,453,065.22|-|192,890,279.75||4,035,294,188.36|-|
|S|ubtotal||34,226,935,780.20|-|979,700,695.53||-|3,483,960,288.13|(131,503,293.50)|1,740,090,189.40|1,538,800,056.10|-|185,891,505.48||38,946,275,109.14|647,382,998.60|
|T|otal||43,160,849,807.48|-|3,147,107,269.05||-|3,913,864,538.60|(137,112,197.62)|1,737,539,689.40|1,969,864,930.06|-|324,193,086.55||50,176,577,263.40|647,382,998.60|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
V. NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 9. Long-term equity investments - continued
Note 1: As at 6 February 2018, China Merchants Union (BVI) Limited (hereinafter referred to as "CMU"), a joint venture between the Group and China Merchants Group (Hong Kong) Co., Ltd. (hereinafter referred to as "CMHK"), and its wholly-owned subsidiary Gold Newcastle Property Holding Pty Limited (hereinafter referred to as "Gold Newcastle") signed an acquisition agreement. The agreement stipulates that the Group will purchase from CMU its wholly-owned subsidiaries Gold Newcastle and Gold Newcastle's joint ventures Port of Newcastle Investments (Holdings) Pty Limited, Port of Newcastle Investments (Property Holdings) Pty Limited, Port of Newcastle Investments ( Holdings) Trust, Port of Newcastle Investments (Property Holdings) Trust (hereinafter collectively referred to as "Port of Newcastle") is a50% interest, and thus Port of Newcastle becomes a joint venture of the Group.
Port of Newcastle is made up of several entities and trusts, and has acquired all the rights and interests of the largest port on the east coast of Australia for about 98 years since 30 May 2014 via lease and sublease. Gold Newcastle is an entity established in Australia by CMU in order to hold a number of assets, including Port of Newcastle. The remaining50% equity of Port of Newcastle is held by independent third parties.
The transaction was completed this year with a final consideration of AUD 605 million (RMB 2,944,265,945.15), including an interest-bearing shareholder loan of AUD 162.5 million (RMB 783,823,491.63) from CMU to Port of Newcastle.
The Group believes that the Group and other joint venture parties jointly control Port of Newcastle. Therefore, the Group accounts for Port of Newcastle as a joint venture. Note 2: In 2018, the Group purchased 72,199,132 shares of Shanghai International Port (Group) Co., Ltd. directly from the open market. As of 31 December 2018, the equity held by the Group in Shanghai International Port (Group) Co., Ltd. has increased from26.45% to26.77%.
Note 3: It was jointly established on 18 December 2018 by theCompany’s subsidiary Chiwan Wharf Holdings (Hong Kong) Limited and related parties CMHK, Jumbo Pacific Holdings Limited, China Merchants Expressway Network& Technology Holdings Co., Ltd., China Merchants Industrial Investment Co., Ltd., and Sinotrans(HK)Logistics Co., Ltd. The registered capital is RMB 3,500 million, among which Chiwan Wharf Holdings (Hong Kong) Limited subscribed and contributed RMB 525 million with shareholding proportion of15%.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 10. Other investments in equity instruments
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Investees||Closing balance||Opening balance|Nature||Cash dividends|
|||||(restated)|||for this year|
|China Ocean Shipping Agency(Shenzhen) Co., Ltd||141,547,500.00|136,994,640.00||The intention ofholding is neither forsale nor profits inshort-term|7,788,975.00||
|Others||106,300,814.30|96,489,328.79||The intention ofholding is neither forsale nor profits inshort-term|440,000.00||
||Total|247,848,314.30|233,483,968.79|||8,228,975.00||

 Note: The Group implemented the new financial instruments standard from 1 January 2018, and reclassified some of the equity instrument investments listed in available-for-sale financial assets at the end of the previous year to this item.
(1) Investment in equity instruments
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item||Closing balance||Opening balance (restated|)|
|Cost of equity instruments|108,289,950.79||104,397,628.79|||
|Increase in the current year|3,892,322.00|||||
|Fair value|247,848,314.30||233,483,968.79|||
|Changes of fair value included in OCI|139,558,363.51||129,086,340.00|||

 11. Other non-current financial assets
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Item||Closing balance||Opening balance (restated|)|
||Financial assets measured at fair values and changes of|2,087,872,081.94||2,982,466,950.23|||
||which are recorded into current period profit or loss||||||
|I|ncluding: Equity instrument investment|2,087,872,081.94||2,982,466,950.23|||

 Note: The Group implemented the new financial instruments standard from 1 January 2018, and reclassified some of the equity instrument investments listed in available-for-sale financial assets at the end of the previous year to this item.
(1) Investment in equity instruments
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item||Closing balance||Opening balance (restated|)|
|Cost of equity instruments|1,173,690,773.13||1,158,810,992.06|||
|Fair value|2,087,872,081.94||2,982,466,950.23|||
|Changes of fair value included in profit or loss of the|914,181,308.81||1,823,655,958.17|||
|current period||||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 12. Investment properties
(1) Investment properties measured under cost method
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Item||Land use rights||Buildings||Total|
|a|I. Total original carrying|||||||
||mount|||||||
||1.Opening balance (restated)|28,632,130.84||6,278,583,514.39||6,307,215,645.23||
||2.Increase in the current year|-||14,022,292.33||14,022,292.33||
||(1)Purchase|-||12,229,350.87||12,229,350.87||
||(2)Other increase|-||1,792,941.46||1,792,941.46||
||3.Decrease in the current year|-||-||-||
||4.Closing balance|28,632,130.84||6,292,605,806.72||6,321,237,937.56||
||II. Total accumulated|||||||
||depreciation|||||||
||1.Opening balance (restated)|14,982,319.41||231,607,343.69||246,589,663.10||
||2.Increase in the current year|513,472.44||183,987,812.51||184,501,284.95||
||(1)Accrual of depreciation|513,472.44||182,734,964.93||183,248,437.37||
||(2)Other increase|-||1,252,847.58||1,252,847.58||
||3.Decrease in the current year|-||-||-||
||4.Closing balance|15,495,791.85||415,595,156.20||431,090,948.05||
||III. Total accumulated amount of|||||||
||provision for impairment losses|||||||
||of investment property|||||||
||1.Opening balance (restated)|-||-||-||
||2.Increase in the current year|-||-||-||
||3.Decrease in the current year|-||-||-||
||4.Closing balance|-||-||-||
||IV. Total book value of|||||||
||investment property|||||||
||1.Closing balance|13,136,338.99||5,877,010,650.52||5,890,146,989.51||
||2.Opening balance (restated)|13,649,811.43||6,046,976,170.70||6,060,625,982.13||

 (2) Investment properties without ownership certificates
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance(restated)|
|Buildings and land use rights|43,119,291.89||37,101,489.68||

 13. Fixed assets
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance (restated)|
|Fixed assets|22,994,155,151.43||23,167,379,576.44||
|Disposal of fixed assets|35,729.00||13,878.42||
|Total|22,994,190,880.43||23,167,393,454.86||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 13. Fixed assets - continued
(1) Fixed assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||Mechanical|||
||Port and terminal|||Motor vehicles, cargo||
|Item||Buildings|equipment, furniture||Total|
||facilities|||ships and tugboats||
||||and others|||
|I. Total original carrying amount||||||
|1.Opening balance (restated)|21,717,431,562.53|1,109,711,967.12|9,556,587,164.50|1,202,757,027.75|33,586,487,721.90|
|2. Increase in the current year|1,444,412,678.73|49,885,407.01|1,268,003,739.58|186,161,101.23|2,948,462,926.55|
|(1)Purchase|17,188,457.11|1,525,213.89|92,428,334.50|26,960,609.63|138,102,615.13|
|(2)Transfer from construction in|71,825,427.47|42,131,895.04|358,429,373.77|148,125,344.43|620,512,040.71|
|progress||||||
|(3)Effect of changes in the scope|1,355,398,794.15|6,228,298.08|817,146,031.31|11,075,147.17|2,189,848,270.71|
|of consolidation||||||
|3.Decrease in the current year|1,619,698,235.98|22,009,112.14|234,172,039.22|49,119,866.78|1,924,999,254.12|
|(1)Disposal or retire|143,249,072.49|634,179.50|234,172,039.22|49,119,866.78|427,175,157.99|
|(2)Transfer to construction in|1,476,449,163.49|19,581,991.18|-|-|1,496,031,154.67|
|progress||||||
|(3)Transfer to investment|-|1,792,941.46|-|-|1,792,941.46|
|properties||||||
|4.Effect of changes in foreign|293,091,861.70|11,378,173.47|1,737,493.30|28,467,389.87|334,674,918.34|
|exchange||||||
|5.Closing balance|21,835,237,866.98|1,148,966,435.46|10,592,156,358.16|1,368,265,652.07|34,944,626,312.67|
|II. Total accumulated depreciation||||||
|1.Opening balance (restated)|4,286,051,154.44|208,977,381.63|5,392,312,327.64|474,303,769.96|10,361,644,633.67|
|2.Increase in the current year|854,950,356.83|39,456,897.49|977,003,813.94|73,149,393.38|1,944,560,461.64|
|(1)Accrual of depreciation|585,606,826.05|39,456,897.49|606,453,094.44|67,154,391.45|1,298,671,209.43|
|(2)Effect of changes in the scope|269,343,530.78|-|370,550,719.50|5,995,001.93|645,889,252.21|
|of consolidation||||||
|3.Decrease in the current year|182,416,870.31|2,837,281.84|169,430,690.69|35,400,272.26|390,085,115.10|
|(1)Disposal or retire|95,233,231.01|566,086.84|169,430,690.69|35,400,272.26|300,630,280.80|
|(2)Transfer to construction in|87,183,639.30|1,018,347.42|-|-|88,201,986.72|
|progress||||||
|(3)Transfer to investment|-|1,252,847.58|-|-|1,252,847.58|
|properties||||||
|4.Effect of changes in foreign|(11,415,084.52)|1,583,244.14|(16,454,108.66)|3,173,617.91|(23,112,331.13)|
|exchange||||||
|5.Closing balance|4,947,169,556.44|247,180,241.42|6,183,431,342.23|515,226,508.99|11,893,007,649.08|
|III. Total accumulated amount of||||||
|provision for impairment losses of||||||
|investment property||||||
|1.Opening balance (restated)|57,419,468.96|-|44,042.83|-|57,463,511.79|
|2.Increase in the current year|-|-|0.37|-|0.37|
|3.Decrease in the current year|-|-|-|-|-|
|4.Closing balance|57,419,468.96|-|44,043.20|-|57,463,512.16|
|IV. Total book value of||||||
|investment property||||||
|(1) Closing balance|16,830,648,841.58|901,786,194.04|4,408,680,972.73|853,039,143.08|22,994,155,151.43|
|(2) Opening balance (restated)|17,373,960,939.13|900,734,585.49|4,164,230,794.03|728,453,257.79|23,167,379,576.44|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 13. Fixed assets - continued
(2) Fixed assets leased in through financial leasing
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item||Carrying amount||Accumulated|Book value|
|||||depreciation||
||Port and terminal facilities|5,318,357,246.96|85,260,010.27||5,233,097,236.69|
||Buildings|133,330,273.37|6,028,470.75||127,301,802.62|
||Mechanical equipment, furniture and|360,238,863.33|214,493,738.80||145,745,124.53|
||others|||||
||Motor vehicles, cargo ships and tugboats|38,350,000.00|28,100,712.71||10,249,287.29|
||Total|5,850,276,383.66|333,882,932.53||5,516,393,451.13|

 (3) Fixed assets leased out through finance leasing
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance (restated)|
|Port and terminal facilities|844,843,802.95||971,151,561.19||
|Buildings|242,804,849.53||289,588,337.69||
|Mechanical equipment, furniture and others|139,712.96||255,687.15||
|Total|1,087,788,365.44||1,260,995,586.03||

 (4) Fixed assets without ownership certificates
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance (restated)|
|Buildings, Port and terminal facilities|1,590,990,468.38||1,746,684,998.44||

 (5) Other issues
Unit: RMB
||||||
|-|-|-|-|-|
||Item||Amount|Note|
|b|The original amounts of fixed assets fully depreciated|1,680,807,123.39|||
||ut still in use at 31 December 2018||||
||Closing original amount of temporary idle fixed assets|-|||
|F|ixed assets disposed or retired in the current period||||
||Original amount of fixed assets disposed or retired in the|427,175,157.99|||
||current period||||
||Net book value of fixed assets disposed or retired in the|126,544,877.19|||
||current period||||
||Gains or losses on disposal or retire of fixed assets|(13,944,505.56)|||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 14. Construction in progress
(1) Summary of construction in progress
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance(restated)|||
|Item||Provision for|||Provision for||
||Carrying amount|impairment|Book value|Carrying amount|impairment|Book value|
|Port and terminal facilities|4,104,748,962.75|-|4,104,748,962.75|1,772,774,735.44|-|1,772,774,735.44|
|Berths and yards|1,023,331,798.30|-|1,023,331,798.30|12,388,194.50|-|12,388,194.50|
|Infrastructure|40,000,912.00|-|40,000,912.00|35,095,018.11|-|35,095,018.11|
|Ship under construction|22,985,373.73|-|22,985,373.73|142,411,112.12|-|142,411,112.12|
|Equipment|-|-|-|213,801,119.70|-|213,801,119.70|
|Others|308,359,043.28|-|308,359,043.28|131,537,150.63|-|131,537,150.63|
|Total|5,499,426,090.06|-|5,499,426,090.06|2,308,007,330.50|-|2,308,007,330.50|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
14. Construction in progress - continued
(2) The top ten balances of construction in progress
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Proportion of||||||
|||||||Effect of||accumulated|Constructi|||Interest||
|||||Effect of|Decrease in|changes in||construction|on|Amount of|Including:|capitalizati||
|Item|||||||Closing balance|||||||
|||||changes in scope|the current|foreign||investment in|progress|accumulated|capitalized|on rate for||
|||Opening|Increase in the|of consolidation|period|exchange||budget|(%)|capitalized|interest for the|the current|Capital|
||Budget amount|balance(restated)|current period|||||(%)||interest|current period|period (%)|source|
|Reconstruction Project of container, oil|2,776,464,530.76|-|1,334,002,333.13|-|-|50,259,451.57|1,384,261,784.70|49.86|49.86|-|-|-|Self-funding|
|terminal and tank area, HIPG||||||||||||||
||2,875,500,000.00|726,456,652.38|523,789,103.07|-|-|-|1,250,245,755.45|43.48|43.48|-|-|-|Self-funding|
|Guangao project Phase II, Shantou Port||||||||||||||
||1,071,009,228.80|-|590,710,536.81|456,392,978.15|-|(80,506,818.84)|966,596,696.12|90.25|90.25|8,473,403.78|8,473,403.78|7.44|Self-funding and loan|
|TCP berth expansion project||||||||||||||
|Berth 3 of Houshigang District, Xiamen|1,000,000,000.00|679,113,997.53|58,742,500.98|-|97,650.00|-|737,758,848.51|73.78|98.78|56,757,132.89|17,491,904.90|4.77|Self-funding and loan|
|Port||||||||||||||
|Reconstruction project of Berth 1#-4#,|1,174,090,000.00|210,348,590.96|206,977,637.18|-|-|-|417,326,228.14|35.54|35.54|-|-|-|Self-funding|
|Haixing Wharf||||||||||||||
|Logistics park project Phase I, Djibouti|255,311,040.00|33,958,350.80|165,744,909.11|-|-|5,684,437.02|205,387,696.93|80.45|85.00|-|-|-|Self-funding|
|international free trade zone||||||||||||||
||57,855,731.00|-|56,809,343.00|-|-|-|56,809,343.00|98.19|98.00|-|-|-|Self-funding|
|Reclamation project, Zhangzhou Wharf||||||||||||||
|Project of Grain Dispatch Warehouse at|680,000,000.00|1,760,873.59|53,039,774.09|-|-|-|54,800,647.68|8.06|8.06|-|-|-|Self-funding|
|Berth2#,3# Phase III , Machong Port||||||||||||||
|Liaogeshou project, Guangdong Yide|105,357,118.22|4,499,011.90|39,495,974.81|-|642,881.78|-|43,352,104.93|41.15|41.15|880,381.52|880,381.52|4.66|Bank loan|
|Port||||||||||||||
|RTG remote control system Phase III,|34,726,400.00|24,057,992.68|6,544,920.51|-|-|-|30,602,913.19|88.13|88.13|-|-|-|Self-funding|
|Mawan Wharf||||||||||||||
||10,030,314,048.78|1,680,195,469.84|3,035,857,032.69|456,392,978.15|740,531.78|(24,562,930.26)|5,147,142,018.65|||66,110,918.19|26,845,690.20|||
|Total||||||||||||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 15. Intangible assets
(1) Summary of intangible assets
Unit: RMB
||||||
|-|-|-|-|-|
|||Terminal management|||
||Land use rights||Others|Total|
|||rights|||
|I. Total original carrying amount|||||
|1.Opening balance (restated)|13,012,429,380.15|5,171,928,708.25|356,221,955.06|18,540,580,043.46|
|2.Increase in the current year|198,446,998.71|5,682,157,733.65|761,163,308.23|6,641,768,040.59|
|(1)Purchase|-|20,653,099.07|38,786,280.95|59,439,380.02|
|(2)Effect of changes in the scope of|198,446,998.71|5,661,504,634.58|649,313,168.73|6,509,264,802.02|
|consolidation|||||
|(3)Other increase|-|-|73,063,858.55|73,063,858.55|
|3.Decrease in the current year|213,014,868.97|-|4,347,166.59|217,362,035.56|
|(1)Disposal|711,000.00|-|3,961,765.86|4,672,765.86|
|(2)Other decrease|212,303,868.97|-|385,400.73|212,689,269.70|
|4.Effect of changes in foreign|100,017,007.56|(342,565,782.79)|11,031,872.58|(231,516,902.65)|
|exchange|||||
|5.Closing balance|13,097,878,517.45|10,511,520,659.11|1,124,069,969.28|24,733,469,145.84|
|II. Accumulated amortization|||||
|1.Opening balance (restated)|2,180,627,622.16|336,212,844.34|150,026,238.05|2,666,866,704.55|
|2.Increase in the current year|276,118,161.35|1,023,071,295.99|133,128,803.32|1,432,318,260.66|
|(1)Accrual of amortization|256,213,827.21|217,063,102.49|53,717,661.08|526,994,590.78|
|(2)Effect of changes in the scope of|19,895,447.17|806,008,193.50|73,484,560.81|899,388,201.48|
|consolidation|||||
|(3)Other increase|8,886.97|-|5,926,581.43|5,935,468.40|
|3.Decrease in the current year|31,916,438.47|-|3,959,215.55|35,875,654.02|
|(1)Disposal|228,249.74|-|3,959,215.55|4,187,465.29|
|(2)Other decrease|31,688,188.73|-|-|31,688,188.73|
|4.Effect of changes in foreign|9,068,369.38|(90,587,828.63)|(9,338,750.64)|(90,858,209.89)|
|exchange|||||
|5.Closing balance|2,433,897,714.42|1,268,696,311.70|269,857,075.18|3,972,451,101.30|
|III. Total provision for impairment losses|||||
|1.Opening balance|-|-|-|-|
|2.Increase in the current year|-|-|-|-|
|3.Decrease in the current year|-|-|-|-|
|4.Closing balance|-|-|-|-|
|IV. Total book value|||||
|1.Closing balance|10,663,980,803.03|9,242,824,347.41|854,212,894.10|20,761,018,044.54|
|2.Opening balance (restated)|10,831,801,757.99|4,835,715,863.91|206,195,717.01|15,873,713,338.91|

(2) Land use rights without ownership certificates on 31 December2018：
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance (restated)|
|Land use rights|1,383,494,095.83|2,202,883,733.38|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 16. Goodwill
(1) Carrying amount of goodwill
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Effect of changes||
||Opening balance|||||
|Investee||Increase|Decrease|in foreign|Closing balance|
||(restated)|||||
|||||exchange||
|TCP Participações S.A.(hereinafter referred|-|3,969,374,954.86|-|314,854,984.25|4,284,229,939.11|
|as "TCP")(Note1)||||||
|Mega Shekou Container Terminals Limited|1,815,509,322.42|-|-|-|1,815,509,322.42|
|(Note2)||||||
|China Merchants Port Holdings Co.,|993,992,000.00|-|-|-|993,992,000.00|
|Ltd(Note3)||||||
|Shantou CMPort Group Co., Ltd. (Note4)|552,317,736.65|-|-|-|552,317,736.65|
|Shenzhen Mawan Project(Note5)|408,773,001.00|-|-|-|408,773,001.00|
|Others|281,073,843.17|-|-|-|281,073,843.17|
|Total|4,051,665,903.24|3,969,374,954.86|-|314,854,984.25|8,335,895,842.35|

 Note1: TCP is incorporated in Brazil, were included in the scope of consolidation from February 2018, refer to the details in Notes (VI) 1.
Note2: The goodwill recognized at the time of company reorganization consisting of Shekou Container Terminals Limited., Shenzhen United Express Container Terminal Co., Ltd and Anxun Express Container Terminal (Shenzhen) Co., Ltd by China Merchants Port Holdings Co., Ltd.
Note3: In December 2018, the Group had the ownership of the goodwill formed when the ultimate controlling shareholder merges with China Merchants Port Holdings based on requirements of business combination involving enterprises under common control. Note4: The goodwill formed in August 2018, when the Group merged with Shantou CMPort Group Co., Ltd. under non common control.
Note5: Shenzhen Mawan Project including Shenzhen Mawan Wharf Co., Ltd., Shenzhen Mawan Port Co., Ltd. and Shenzhen Mawan Terminals Co., Ltd.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 16. Goodwill - continued
(2) Details of goodwill impairment
The Group conducts impairment testing on the entire group of subsidiaries that generate goodwill as an asset group. The recoverable amount of each subsidiary that generates goodwill is determined by the present value of the estimated future cash flows of each subsidiary. The management of the Group estimates the future cash flows based on the 5-year detailed forecast period and the subsequent forecast period. The estimated future cash flows for the detailed forecast period are based on the business plan established by the management; the expected future cash flows for the subsequent forecast period are determined in conjunction with the level of the final year of the detailed forecast period, combined with the Group's business plans, industry trends and inflation rates. The key assumptions used by the Group in estimating future cash flows include growth in business volume, gross profit margin and discount rate. After the impairment test, the management of the Group believes that any reasonable change in the above assumptions will not result in the book value of the net assets of the subsidiaries generating the goodwill being lower than the recoverable amount.
17. Long-term prepaid expenses
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Opening balance|Effect of changes in the|Increase in the|Amortization in the|||
|Item|||||Other decrease|Closing balance|
||(restated)|scope of consolidation|current period|curren period|||
|Construction expenditure of Tonggu|177,084,607.57|-|-|12,517,222.60|-|164,567,384.97|
|sea-route|||||||
|Relocation project of Nanhai Rescue|41,165,331.01|-|-|1,057,781.52|-|40,107,549.49|
|Bureau|||||||
|Expenditures for the improvement of|21,819,104.34|-|1,812,481.57|2,468,047.74|-|21,163,538.17|
|leased fixed assets|||||||
||14,861,541.85|-|4,193,305.83|3,002,422.89|6,184,460.21|9,867,964.58|
|Others|||||||
||254,930,584.77|-|6,005,787.40|19,045,474.75|6,184,460.21|235,706,437.21|
|Total|||||||

 18. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets without offsetting
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item|||Closing balance||Opening balance(restated)||
||||Deductible temporary|Deferred tax assets|Deductible temporarydifferences|Deferred tax assets|
||||differences||||
||Deductible losses|86,136,992.42||23,604,794.05|23,413,934.04|5,853,483.51|
||Deferred income|50,033,346.52||11,382,687.30|53,396,038.93|12,048,346.61|
||Provision for credit loss|32,805,128.88||8,213,219.45|31,601,788.61|7,859,088.01|
||Depreciation of fixed assets|22,036,522.49||4,514,995.56|8,969,515.16|2,236,628.81|
||Provisions|19,470,820.00||6,620,078.85|-|-|
||Amortization of computer software|16,453,443.95||4,113,360.99|16,552,962.31|4,138,240.58|
||Organization costs|14,386,394.26||3,287,938.27|17,866,660.19|3,849,377.27|
||Provision for impairment losses of|2,258,081.96||481,468.22|4,319,993.78|811,641.14|
||assets||||||
||Others|17,635,287.26||4,489,614.50|26,630,589.20|5,629,099.14|
||Total|261,216,017.74||66,708,157.19|182,751,482.22|42,425,905.07|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 18. Deferred tax assets and deferred tax liabilities - continued
(2) Deferred tax liabilities without offsetting
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item||Closing balance||||Opening balance(restated)|||
||||Taxable temporary||Deferred taxliabilities|Taxable temporarydifferences||Deferred tax|
||||differences|||||liabilities|
||Withholding dividend income tax|17,819,027,902.41||1,138,273,886.12||13,476,065,349.28|730,874,825.97||
||Fair value adjustment of assetsacquired by business combination|6,415,001,869.22||1,431,954,458.35||4,836,948,279.07|874,093,308.95||
||Changes in fair value of other equityinvestments|136,717,500.00||34,179,375.00||132,214,640.00|33,053,660.00||
||Changes in fair value of othernon-current financial assets|930,040,371.21||105,285,399.58||1,814,771,615.06|190,566,523.96||
||Depreciation of fixed assets|754,359,502.42||174,592,634.60||749,768,170.23|183,301,560.91||
||Others|114,027,794.35||26,789,187.62||13,140,901.85|3,285,224.67||
||Total|26,169,174,939.61||2,911,074,941.27||21,022,908,955.49|2,015,175,104.46||

 (3) Deferred tax assets or liabilities that are presented at the net amount after offsetting Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Closing amount ofdeferred tax assetsand liabilities thatare offset|Closing amount ofdeferred tax assetsor liabilities afteroffsetting|Opening amount ofdeferred tax assetsand liabilities thatare offset||Opening amount of|
|||||||deferred tax assets|
|||||||or liabilities after|
|||||||offsetting|
|||||||(restated)|
||Deferred tax assets|-|66,708,157.19|-|42,425,905.07||
||Deferred tax liabilities|-|2,911,074,941.27|-|2,015,175,104.46||

 (4) Details of unrecognized deferred tax assets
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|||||(restated)|
||Deductible temporary differences|237,418,074.51|264,023,276.51||
||Deductible losses|1,291,865,454.88|674,971,756.09||
||Total|1,529,283,529.39|938,995,032.60||

 Note: The Group recognizes deferred income tax assets based on the future taxable income that is probable to be used to offset the deductible temporary differences and deductible losses, deferred income tax assets that are deductible for temporary differences and deductible losses that exceed future taxable income.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 18. Deferred tax assets and deferred tax liabilities - continued
(5) Deductible losses for unrecognized deferred tax assets will be expired in the following years Unit: RMB
||||||
|-|-|-|-|-|
|Year|Closing balance||Opening balance|Note|
||||(restated)||
|2018|-|145,446,400.54|||
|2019|132,642,333.11|168,593,695.34|||
|2020|110,359,740.81|136,937,771.64|||
|2021|151,793,398.29|97,773,769.06|||
|2022|320,679,566.41|126,192,766.36|||
|2023|576,351,741.67|-|||
|No expiration date|38,674.59|27,353.15|||
|Total|1,291,865,454.88|674,971,756.09|||

19. Other non-current assets
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Prepayments of land use rights|175,908,026.15|175,807,391.86|
|Prepayments of fixed assets|174,039,051.91|14,666,643.64|
|Prepayments of terminal franchise|30,383,609.79|29,974,884.20|
|Others|14,860,798.13|7,300,911.95|
|Total|395,191,485.98|227,749,831.65|

 20. Short-term borrowings
(1) Classification of short-term borrowings
Unit: RMB
||||
|-|-|-|
|Item||Opening balance|
||Closing balance||
|||(restated)|
|Credit loan|3,425,291,312.62|2,540,000,000.00|
|Credit guaranteed loan (Note)|-|40,000,000.00|
|Total|3,425,291,312.62|2,580,000,000.00|

 Note: The loan was guaranteed by Qingdao Port Merchants International Container Terminal Co., Ltd., which is a subsidiary of the Group.
(2) As at 31 December 2018, the Group has no short-term loans that were overdue.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 21. Notes and accounts payable
(1) Summary of notes and accounts payable
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Notes payable|-|-|
|Accounts payable|429,120,690.97|331,606,335.81|
|Total|429,120,690.97|331,606,335.81|

 (2) Accounts payable
(a) Details of accounts payable are as follows:
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Service fee|132,946,488.81|63,471,208.22|
|Construction fee|115,371,240.88|120,248,846.99|
|Material purchase|76,365,058.49|81,737,391.88|
|Rental fee|10,564,893.93|18,658,503.66|
|Equipment payments|659,317.15|11,756,211.33|
|Others|93,213,691.71|35,734,173.73|
|Total|429,120,690.97|331,606,335.81|

 (b) Significant accounts payable aged more than one year
Unit: RMB
||||||
|-|-|-|-|-|
||Item||Amount|Reason for outstanding|
|CCCC Third Harbor Engineering Co., Ltd.||36,262,727.66|||
|Shenzhen Land and Resources Bureau||21,642,795.50|||

 22. Receipts in advance
(1) Summary of receipts in advance
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Service fee receipt in advance|23,038,672.44|29,458,721.86|
|Rental fee receipt in advance|5,536,804.56|1,669,309.14|
|Other|595,232.86|831,720.17|
|Total|29,170,709.86|31,959,751.17|

(2) There is no significant receipts in advance aged more than one year at the end of the year.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 23. Contract liabilities
(1) Summary of contract liabilities
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Service fee received in advance|24,353,966.50|17,336,038.22|
|Port charges received in advance|11,657,235.81|13,053,987.04|
|Warehousing fee received in advance|8,705,589.57|9,628,695.56|
|Other|5,277,103.62|3,907,469.43|
|Total|49,993,895.50|43,926,190.25|

 (2) There is no significant contract liabilities aged more than one year at the end of the year. (3) Statement of material changes in the contract liabilities:
The amount of revenue recognized in the book value of contract liabilities at the beginning of 2018 is RMB 43,926,190.25, including contract liabilities arising from settled unfinished funds resulting from the advance payment of labor contracts amounted to RMB
13,053,987.04, the contractual liabilities arising from the settled unfinished funds formed by the pre-collection warehousing fee contract amounted to RMB 9,628,695.56, and the contractual liabilities arising from the settlement of unfinished funds formed by other contracts amounted to RMB 3,907,469.43.
(4) Qualitative and quantitative analysis of Contract liabilities
The contract liability is mainly the amount received by the Group to provide port services to customers. The payment is collected according to the contract payment time. The Group recognizes contract revenue based on the progress of the contract. The contract liabilities will be recognized as income after the Group fulfills its performance obligations. 24. Employee benefits payable
(1) Details of employee benefits payable are as follows
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Opening balance(restated)||Effect of changes in|Increase in thecurrent year|Decrease in thecurrent year|Closing balance|
|||||the scope of||||
|||||consolidation||||
||1.Short-term benefits|379,876,734.70|30,144,586.64||1,758,280,674.14|1,736,587,857.25|431,714,138.23|
||2.Post-employment benefits -|299,320.00|2,131,376.20||146,194,303.52|146,338,349.81|2,286,649.91|
||Projected benefits|||||||
||obligation|||||||
||3.Termination benefits|-|-||15,538,374.32|15,538,374.32|-|
||4.Others|(405,956.30)|-||4,113,746.06|4,219,022.50|(511,232.74)|
||Total|379,770,098.40|32,275,962.84||1,924,127,098.04|1,902,683,603.88|433,489,555.40|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 24. Employee benefits payable - continued
(2) Short-term benefits
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Opening balance(restated)||Effect of changes in|Increase in thecurrent year|Decrease in thecurrent year|Closing balance|
|||||the scope of||||
|||||consolidation||||
||I. Wages and salaries, bonuses,|356,127,716.69|29,532,679.53||1,519,476,886.86|1,495,746,353.47|409,390,929.61|
||allowances and subsidies|||||||
|II. Staff welfare|II. Staff welfare|-|-||50,293,470.22|50,293,470.22|-|
|III. Social insurance charges||2,284,921.87|558,496.86||76,887,740.31|74,585,632.47|5,145,526.57|
|Including: Medical insurance||2,256,946.66|-||57,578,876.98|55,417,484.38|4,418,339.26|
|Work injury insurance||-|-||6,929,715.22|6,929,715.22|-|
|Maternity insurance||-|-||3,430,651.30|3,430,651.30|-|
||Others|27,975.21|558,496.86||8,948,496.81|8,807,781.57|727,187.31|
||IV. Housing funds|-|-||82,135,287.67|82,135,287.67|-|
||V. Labor union and employee|21,464,096.14|43,396.64||23,379,295.45|27,720,114.47|17,166,673.76|
||education funds|||||||
||VI. Others|-|10,013.61||6,107,993.63|6,106,998.95|11,008.29|
||Total|379,876,734.70|30,144,586.64||1,758,280,674.14|1,736,587,857.25|431,714,138.23|

 (3) Projected benefits obligation
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Opening balance||Effect of changes in|Increase in the currentyear|Decrease in thecurrent year|Closing balance|
|||||the scope of||||
|||||consolidation||||
||I. Basic pension|-|1,614,246.59||106,347,884.56|106,341,694.26|1,620,436.89|
||II. Unemployment|-|517,129.61||2,197,297.41|2,163,268.90|551,158.12|
||insurance|||||||
||III. Enterprise|299,320.00|-||37,649,121.55|37,833,386.65|115,054.90|
||annuity plan|||||||
||Total|299,320.00|2,131,376.20||146,194,303.52|146,338,349.81|2,286,649.91|

 Note: The Company and its subsidiaries participates in the social security contributions and the unemployment insurance plan established by government institutions as required. According to such plans, the Group contributes in proportion to the local government. Except for the above-mentioned deposit fees, the Group have no outstanding
contributions to be paid to the social security contributions and the unemployment insurance plan. The corresponding expenses are included in the current profit and loss or the cost of related assets when incurred.
25. Taxes payable
Unit: RMB
||||
|-|-|-|
||Closing balance|Opening balance|
|Item|||
|||(restated)|
|Enterprise income tax|271,954,754.74|218,660,609.24|
|VAT|8,200,265.65|9,363,588.24|
|Others|65,028,402.03|30,530,970.31|
|Total|345,183,422.42|258,555,167.79|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 26. Other payables
(1) Other payables
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Interest payable|555,545,627.60|248,861,288.63|
|Dividends payable|66,052,207.09|207,240,883.54|
|Other payables|1,624,072,694.20|6,114,459,414.79|
|Total|2,245,670,528.89|6,570,561,586.96|

 (2) Interest payable
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Corporate bond interest|492,300,138.05|213,605,656.91|
|Long-term loan interest|57,176,593.29|29,371,285.14|
|Short-term loan interest|2,074,199.59|3,400,732.73|
|Others|3,994,696.67|2,483,613.85|
|Total|555,545,627.60|248,861,288.63|

 As at 31 December 2018, there is no significant other overdue interest payables.
(3) Dividends payable
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Ordinary share dividends|66,052,207.09|207,240,883.54|
|Including：Yihai Kerry Investment Co., Ltd. ("Yihai Kerry")|37,402,426.09|37,402,426.09|
|Sinotrans South China Co., Ltd|25,949,781.00|25,949,781.00|
|Qingdao Port (Group) Co., Ltd|2,700,000.00|15,336,000.00|
|Payable to Hongkong International Enterprise Co., Ltd.|-|128,552,676.45|
|("HK International")|||

As at 31 December 2018, the dividend payable for more than one year is RMB 63,352,207.09, dividends not yet received by the investor.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 26. Other payables - continued
(4) Other payables
(a) Disclosure of other payables by nature
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Amount payable for construction and quality warranty|660,870,685.70|737,770,664.40|
|Deposits|149,705,612.54|111,475,378.58|
|Prepaid expenses|140,305,423.54|63,222,555.07|
|Customer discount|128,787,894.63|130,349,250.94|
|Balance of land use rights transfer|93,258,350.90|93,258,350.90|
|Port construction and security fee|62,255,593.38|62,730,234.66|
|Equity acquisition(Note)|-|4,473,272,642.90|
|Others|388,889,133.51|442,380,337.34|
|Total|1,624,072,694.20|6,114,459,414.79|

 Note: The amount at the beginning of the year was an unpaid purchase due to the acquisition of the equity interest in Hambantota International Port Group (Private) Limited (hereinafter referred to as "HIPG").
(b) Significant Other payables aged more than one year
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Company name||Closing balance||Nature|
||China Merchants Zhangzhou Co.,|93,258,350.90||Payments to be paid after confirmation by bothparties||
||Ltd.|||||
||Shanghai Zhenhua Heavy Industries|75,414,386.66||Payments to be paid after confirmation by bothparties||
||Co., Ltd. (ZPMC)|||||
||CCCC Third Harbor Engineering|37,743,418.00||The contracted settlement condition has notbeen reached||
||Co., Ltd.|||||
||CCCC Fourth Harbor Engineering|32,307,249.00||The contracted settlement condition has notbeen reached||
||Co., Ltd.|||||
|Shantou Transportation Bureau||31,358,355.47||Payments to be paid after confirmation by bothparties||
||Shenzhen Merchants Construction|28,223,077.10||The contracted settlement condition has notbeen reached||
||Co., Ltd.|||||
||Qingdao Maritime Bureau|20,713,982.12||Outstanding port construction fee||
||China Merchants property Co., Ltd.|12,090,083.93||Outstanding property management fee||
|Shantou Finance Bureau||10,000,000.00||Payments to be paid after confirmation by bothparties||
||Guangdong Hengtai Tong Industrial|10,000,000.00||The contracted settlement condition has notbeen reached||
||Co., Ltd.|||||
||China First Metallurgical Group|8,175,706.55||The contracted settlement condition has notbeen reached||
||Co., Ltd|||||
||Harman Technology (Shenzhen)|5,884,632.48||The contracted settlement condition has notbeen reached||
||Co., Ltd.|||||
||Ningbo Communications|5,633,275.00||The contracted settlement condition has notbeen reached||
||Engineering Construction Group|||||
||Co., Ltd.|||||
||Total|370,802,517.21||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 27. Non-current liabilities due within one year
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Long-term loans due within one year|1,913,116,720.26|773,035,147.51|
|Including：Credit loan|375,382,058.46|127,230,000.00|
|Guaranteed loan|1,090,500,000.00|338,000,000.00|
|Mortgage loan|447,234,661.80|307,805,147.51|
|Bonds payable due within one year|299,531,506.81|1,555,654,132.52|
|Long-term payable due within one year|30,635,607.84|45,068,468.44|
|Long-term employee benefits payable due within one year|19,100,000.00|19,480,000.00|
|Other non-current liabilities due within one year|87,465,615.05|-|
|Total|2,349,849,449.96|2,393,237,748.47|

 28. Other current liabilities
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance||
|||(restated)|
|Joint venture loan|241,927,341.05|230,331,618.08|
|Short-term bonds payable|200,000,000.00|100,000,000.00|
|Accrued professional agency fee|116,064,056.75|38,342,089.20|
|Others|44,668,324.00|16,798,621.17|
|Total|602,659,721.80|385,472,328.45|

 Changes of short-term bonds payable
Unit: RMB Name of bond Face value Date of issue
oT
bf
oe tr nhm
de Amount of issue
O bap le an ni cn eg
A inm to
h
pu
e
en rct
u
oi
r
ds rs eu ne td
ac dc
uI
r
pn
u
eit
e
ne
rd
ir
e
a
dts
t
ht
p
ar
D
p ar
mi es
tom
ioc oro
r
i
uu
zmn at
R te hp
e
pa ey
c
rum
ir
oe
r
den nt ti n
Closing balance
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of bond4.740%, RMB 100million, Super &Short-term CommercialPaper|||Face value100,000,000.00|Date of issue21/08/2017|of thebond270days|Amount of issue100,000,000.00|balance100,000,000.00|in the currentperiod-|during theperiod1,805,095.90|premiumamortization-|the currentperiod100,000,000.00|Closing balance-|
||illion, Super &||||||||||||
||hort-term Commercia||||||||||||
||aper||||||||||||
|4.mSP|730%, RMB 200|l|200,000,000.00|24/04/2018|267days|200,000,000.00|-|200,000,000.00|6,349,863.00|-|-|200,000,000.00|
||illion, Super &||||||||||||
||hort-term Commercia||||||||||||
||aper||||||||||||
|to|tal||300,000,000.00|||300,000,000.00|100,000,000.00|200,000,000.00|8,154,958.90|-|100,000,000.00|200,000,000.00|

 29. Long-term borrowings
(1) Classification of long-term loans
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|||||(restated)|
||Credit borrowings|2,032,494,533.83|741,493,000.00||
||Guaranteed borrowings (Note1)|3,657,846,864.58|4,121,000,000.00||
||Mortgage borrowings (Note2)|3,194,255,164.03|3,581,058,638.66||
||Total|8,884,596,562.44|8,443,551,638.66||
||Less: Long-term borrowings due within one year|1,913,116,720.26|773,035,147.51||
||Including: Credit borrowings|375,382,058.46|127,230,000.00||
||Guaranteed borrowings|1,090,500,000.00|338,000,000.00||
||Mortgage borrowings|447,234,661.80|307,805,147.51||
||Long-term borrowings due after one year|6,971,479,842.18|7,670,516,491.15||

During the year, the annual interest rate of the borrowing is1.20% to8.29%.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 29. Long-term borrowings - continued
(1) Classification of long-term loans - continued
Note1: The loan was guaranteed by Shenzhen Mawan Terminals Co., Ltd., China Merchants Port Services (Shenzhen) Co., Ltd. ("CMPS"), and China Merchants Port Holdings Co., Ltd ("CMPH").
Note2: As at 31 December 2018, the Group obtained the long-term loan amounted to RMB 3,194,255,164.03 is firm subject to the entire share capital of Colombo International Container Terminals Limited and the entire interest of Thesar Maritime Limited, and the land use rights, fixed assests and construction in progress held by Guangdong Yide Port Co., Ltd. (hereinafter referred to as "Yide Port")(31 December 2017:RMB
3,581,058,638.66).
Details of mortgage loan are as follows:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Company name||Closing balance||Opening balance|collateral|
|||||(restated)||
|China Development Bank Corporation||1,543,473,787.28|1,839,649,776.16||The entire equity of Colombo InternationalContainer Terminals Limited held by theGroup|
||International Finance Corporation|529,891,283.72|595,413,018.76||The entire equity of Thesar MaritimeLimited held by the Group|
||African Development Bank|243,463,562.79|273,568,143.76|||
||Nederlandse Financierings-Maatschappij voor|200,499,404.66|225,291,412.50|||
||Ontwikkelingslanden N.V.|||||
||The Opec Fund For International Development|171,856,632.57|193,106,925.00|||
||Societe de Promotion et de Participation pour la|171,856,632.55|193,106,925.00|||
||Cooperation Economique S.A|||||
||Deutsche Investitions-und Entwicklungsgesellschaft|143,213,860.46|160,922,437.48|||
||MBH|||||
|China Construction Bank Shunde Branch||190,000,000.00|100,000,000.00||Yide Port fixed assets and construction inprogress (refer to the details in Notes (V) 55).|
||Total|3,194,255,164.03|3,581,058,638.66|||

30. Bonds payable
(1) Bonds payable
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Program|Closing balance||
|||(restated)|
|4.375%, USD 900 million corporate bond|6,126,655,733.91|-|
|5.000%, USD 600 million corporate bond|4,062,553,267.60|-|
|4.750%, USD 500 million corporate bond|3,414,652,244.84|3,249,996,583.73|
|5.000%, USD 500 million corporate bond|3,408,446,692.17|3,240,255,080.35|
|4.890%, RMB 2.5 billion corporate bond|2,500,000,000.00|2,500,000,000.00|
|3.500%, USD 200 million corporate bond|1,369,419,343.41|1,302,526,637.25|
|IPCA + 7.8164%,BRL 428 million corporate bond|715,739,814.47|-|
|5.150%, RMB 500 million corporate bond|500,000,000.00|-|
|2.970%, RMB 300 million corporate bond|299,531,506.81|298,931,506.83|
|7.125%, USD 200 million corporate bond|-|1,305,654,132.52|
|6.380%, RMB 250 million corporate bond|-|250,000,000.00|
|Total|22,396,998,603.21|12,147,363,940.68|
|Deduct :Bonds payable due within one year|299,531,506.81|1,555,654,132.52|
|Bonds payable due after one year|22,097,467,096.40|10,591,709,808.16|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
30. Bonds payable - continued
(2) Changes of bonds payable
Unit: RMB
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of bonds||Face value|Date ofissue|Term ofthe bond|Amount of issue|Opening balance(restated)||Effect of|Amount issuedin the currentperiod||Interest|Discount orpremiumamortization|Discount orpremiumamortization||Effect of|Closing balance|
|||||||||changes in|||accrued at par||||changes in||
|||||||||scope of|||during the||||foreign||
|||||||||consolidation|||period||||exchange||
|4c|.375%, USD 900 million|USD 900,000,000.00|06/08/2018|5|USD 900,000,000.00|-|-||5,901,408,380.77|104,784,513.81||3,708,529.28|-|221,538,823.86||6,126,655,733.91|
||orporate bond||||||||||||||||
|5c|.000%, USD 600 million|USD 600,000,000.00|06/08/2018|10|USD 600,000,000.00|-|-||3,913,954,048.05|79,835,819.95||1,697,641.11|-|146,901,578.44||4,062,553,267.60|
||orporate bond||||||||||||||||
|4c|.750%, USD 500 million|USD 500,000,000.00|03/08/2015|10|USD 500,000,000.00|3,249,996,583.73|-||-|157,143,889.47||1,969,224.45|-|162,686,436.66||3,414,652,244.84|
||orporate bond||||||||||||||||
|5c|.000%, USD 500 million|USD 500,000,000.00|04/05/2012|10|USD 500,000,000.00|3,240,255,080.35|-||-|165,413,763.15||5,848,608.07|-|162,343,003.75||3,408,446,692.17|
||orporate bond||||||||||||||||
|4c|.890%, RMB 2.5 billion|RMB 2,500,000,000.00|21/04/2017|5|RMB 2,500,000,000.00|2,500,000,000.00|-||-|122,743,557.86||-|-|-||2,500,000,000.00|
||orporate bond||||||||||||||||
|3c|.500%, USD 200 million|USD 200,000,000.00|03/08/2015|5|USD 200,000,000.00|1,302,526,637.25|-||-|46,316,093.76||1,659,288.43|-|65,233,417.73||1,369,419,343.41|
||orporate bond||||||||||||||||
|I|PCA + 7.8164%,BRL 428|BRL 428,047,000.00|07/11/2016|6|BRL 428,047,000.00|-|794,778,392.21||-|76,470,918.04||10,826,025.73|-|(89,864,603.47)||715,739,814.47|
||million corporate bond||||||||||||||||
|5c|.150%, RMB 500 million|RMB 500,000,000.00|06/02/2018|3|RMB 500,000,000.00|-|-||500,000,000.00|23,561,925.18||-|-|-||500,000,000.00|
||orporate bond||||||||||||||||
|2c|.970%, RMB 300 million|RMB 300,000,000.00|11/10/2016|3|RMB 300,000,000.00|298,931,506.83|-||-|8,910,000.04||599,999.98|-|-||299,531,506.81|
||orporate bond||||||||||||||||
|7c|.125%, USD 200 million|USD 200,000,000.00|18/06/2008|10|USD 200,000,000.00|1,305,654,132.52|-||-|43,833,617.64||1,392,506.05|1,322,800,000.00|15,753,361.43||-|
||orporate bond||||||||||||||||
|6c|.380%, RMB 250 million|RMB 250,000,000.00|24/03/2015|3|RMB 250,000,000.00|250,000,000.00|-||-|3,636,600.00||-|250,000,000.00|-||-|
||orporate bond||||||||||||||||
||CDI + 3.40%, BRL 100|BRL 100,000,000.00|07/11/2016|3|BRL 100,000,000.00|-|196,567,218.72||-|8,854,671.29||2,899,768.68|187,090,000.00|(12,376,987.40)||-|
||million corporate bond||||||||||||||||
|c|CDI + 3.90%, BRL 60 million|BRL 60,095,000.00|07/11/2016|5|BRL 60,095,000.00|-|117,291,020.45||-|7,124,061.79||2,526,023.19|112,431,735.50|(7,385,308.14)||-|
||orporate bond||||||||||||||||
||Total|||||12,147,363,940.68|1,108,636,631.38||10,315,362,428.82|848,629,431.98||33,127,614.97|1,872,321,735.50|664,829,722.86||22,396,998,603.21|
||Less: Bonds payable due|||||1,555,654,132.52||||||||||299,531,506.81|
||within one year||||||||||||||||
|y|Bonds payable due after one|||||10,591,709,808.16||||||||||22,097,467,096.40|
||ear||||||||||||||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 31. Long-term payables
(1) Summary of long-term payables
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|||||(restated)|
||Long-term payables|1,285,984,226.34|1,292,874,742.87||
||Special payables|38,841,499.68|42,976,167.51||
||Total|1,324,825,726.02|1,335,850,910.38||
||Less: Long-term payables due within one year|30,635,607.84|45,068,468.44||
||Long-term payables due after one year|1,294,190,118.18|1,290,782,441.94||

 (2) Details of long-term payables
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|||||(restated)|
||Terminal management rights (Note1)|823,360,554.03|788,587,599.72||
||Payable to minority shareholders of subsidiaries (Note2)|390,658,146.52|371,899,413.63||
||Financing lease payments|71,965,525.79|116,052,229.49||
||Rental of port land|-|16,335,500.03||
||Total|1,285,984,226.34|1,292,874,742.87||
||Deduct :long-term payable due within one year|30,635,607.84|45,068,468.44||
||long-term payable due after one year|1,255,348,618.50|1,247,806,274.43||

 Note 1: As at 12 August 2011, the Group reached a 35-year construction, operation and transfer agreement through the subsidiary Colombo International Container Terminals Limited and the Sri Lanka Port Authority on the construction, operation, management and development of the Colombo Port South Container Terminal (hereinafter referred to as for "BOT"). The above-mentioned terminal operating rights purchase amount is determined by discounting the amount to be paid in the future according to the current market interest rate according to the BOT agreement. As at 31 December 2018 and 31 December 2017, the amount was RMB 823,360,554.03 and RMB 788,587,599.72 respectively.
Note2: It is an unsecured loan from minority shareholder of Thesar Maritime Limited, a subsidiary of the Company, which has an annual interest rate of4.65%.
(3) Special payables
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|||||(restated)|
||Refunds of Harbor Construction Fee(Note)|36,061,435.67|40,491,828.56||
||Employee housing fund|2,780,064.01|2,484,338.95||
||Total|38,841,499.68|42,976,167.51||

Note: According to the "Port Construction Fee Management Measures" promulgated by the
Ministry of Finance, this payment is dedicated to the construction of water transport
infrastructure. The refund of the construction fee collected by the Group from the
Shenzhen Municipal Transportation Bureau.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 32. Long-term employee benefits payable
(1) Summary of long-term employee benefits payable
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|||||(restated)|
||Post-employment benefits-|385,323,310.21|358,010,123.90||
||net debt of projected benefits obligation(Note)||||
||Termination benefits|9,101,817.44|12,220,000.00||
||Total|394,425,127.65|370,230,123.90||
||Less:|19,100,000.00|19,480,000.00||
||Long-term employee benefits payable due within one year||||
||Long-term employee benefits payable due after one year|375,325,127.65|350,750,123.90||

 (2) Changes in projected benefits obligation
Present value of projected benefitsobligation：
Unit: RMB
||||||
|-|-|-|-|-|
|Item||2018||2017|
|I. Opening balance(restated)|358,010,123.90||835,963.38||
|II. Benefit cost included in current period income|10,313,678.43||10,084,051.60||
|1.Current service cost|2,163,678.43||3,934,051.60||
|2.Post service cost|(7,460,000.00)||-||
|3.Interest adjustment|15,610,000.00||6,150,000.00||
|III. Benefit cost included in other comprehensive income|34,693,502.67||(23,529,891.08)||
|1.Acturial gains (losses)|34,562,392.88||(23,510,000.00)||
|2.Effect of currency rate changes|131,109.79||(19,891.08)||
|IV. Others changes|(17,693,994.79)||370,620,000.00||
|1.Benefits paid|(17,693,994.79)||(6,560,000.00)||
|2.Changes in the scope of consolidation|-||377,180,000.00||
|V. Closing balance|385,323,310.21||358,010,123.90||

 Note: Shantou China Merchants Port Co., Ltd., a subsidiary of the Company, provides supplementary post-employment benefit plans for retirees on 31 October 2016. The Group hired a third-party actuary to estimate the present value of its above-mentioned retirement benefit plan obligations in an actuarial manner based on the expected cumulative welfare unit method. The Group recognizes the Group's liabilities based on the actuarial results. The relevant actuarial gains or losses are included in other comprehensive income and cannot be reclassified into profit or loss in the future. Past service costs are
recognized in profit or loss for the period in which the plan is revised. The net interest is
determined by multiplying the defined benefit plan net debt or net assets by the
appropriate discount rate.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 33. Provisions
Unit: RMB
|||||
|-|-|-|-|
|||Opening balance||
|Item|Closing balance||Reason|
|||(restated)||
|Pending litigation (Note)|19,470,820.72|-|Note|
|Sales discount|15,480,571.55|50,577,924.97||
|Total|34,951,392.27|50,577,924.97||

Note： Is the estimated amount of compensation expected by TCP, the company's subsidiary, due to pending obligation.
34. Deferred income
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||Effect of changes|||
||Opening balance|||||
|Item||Increase|in the scope of|Decrease|Closing balance|
||(restated)|||||
||||consolidation|||
|Government grants|186,491,676.05|3,534,716.00|48,183,333.33|9,551,510.74|228,658,214.64|

 Related to governmentgrants：
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Opening||Effect of|Recognized in||Related to assets|
||||changes in|Other|Closing||
|Liabilities|balance|Increase||||/Related to|
||||the scope of|comprehensive|balance||
||(restated)|||||income|
||||consolidation|income|||
|Modern logistics special funds|116,000,000.00|-|-|639,999.96|115,360,000.04|Related to assets|
|Ro-ro terminal subsidy|-|-|48,183,333.33|408,333.33|47,775,000.00|Related to assets|
|Qianwan Bonded Logistics Park Project|16,057,853.92|202,466.00|-|956,018.84|15,304,301.08|Related to assets|
|Subsidized grain transfer project subsidy|8,428,571.41|-|-|285,714.29|8,142,857.12|Related to assets|
|Central budgetary support for bulk grain|7,685,416.67|-|-|212,500.00|7,472,916.67|Related to assets|
|transfer terminal projects|||||||
|AMPI|7,709,657.14|-|-|961,620.72|6,748,036.42|Related to assets|
|Oil to electricity project|6,801,927.59|-|-|784,837.92|6,017,089.67|Related to assets|
|Automated terminal operation and|3,802,263.98|3,300,000.00|-|1,939,793.67|5,162,470.31|Related to assets|
|dispatching system special support project|||||||
|Research and development of fully|3,984,700.64|-|-|1,247,677.57|2,737,023.07|Related to assets|
|automated intelligent terminal|||||||
|information investment based on cloud|||||||
|platform architecture|||||||
|Warfare gate subsidy|2,117,903.97|-|-|262,008.73|1,855,895.24|Related to assets|
|Green low carbon port project|1,825,070.02|-|-|421,170.00|1,403,900.02|Related to assets|
|Others|12,078,310.71|32,250.00|-|1,431,835.71|10,678,725.00|Related to assets|
|Total|186,491,676.05|3,534,716.00|48,183,333.33|9,551,510.74|228,658,214.64|Related to assets|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 35. Other non-current liabilities
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balances||Opening|
|||||balance(restated)|
||TCP Operating rights liability (Note1)|3,260,547,002.45|-||
||Obligation to minority shareholders due to acquisition (Note2)|579,195,304.56|-||
||Berth priority call right (Note3)|25,305,830.90|28,830,624.28||
||Others|-|54,763,901.68||
||Total|3,865,048,137.91|83,594,525.96||
||Less: Other non-current liabilities due in one year|87,465,615.05|-||
||Including: TCP Operating rights liability|87,465,615.05|-||
||Other non-current liabilities due after one year|3,777,582,522.86|83,594,525.96||

 Note1: As Notes (VI) 1, As at 23 February 2018, CMPH, a subsidiary of the Company, acquired a90% stake in TCP and incorporate it into the consolidated financial statements of the Group. TCP has right to operate the port of paranagua The relevant concession arrangement allows for operations in the relevant port for up to 2048. At the year end, with the relevant authority, concession payment is payable on a monthly basis and is adjusted from time to time, among other conditions, with reference to an official inflation index in Brazil.
Note2: As Notes (VI) 1, in February 2018, CMPH, a subsidiary of the Company, acquired a90% stake in TCP. According to the agreement, TCP minority shareholders can choose to sell their10% stake in TCP to China Merchants Port Holdings at a higher price than the market price or the BRL 320 million two years later. The Group recognizes the total amount of obligations related to the purchase of minority interests as liabilities. Note3: According to the berth priority call right agreed in the contract signed with the customer in 2003, the total amount is USD 14 million. The Group must give priority to the berthing requirements of the contract customers during the contract period. The Group amortized the berth priority right within 20 years. In 2018, the amount includes in operating income is RMB 3,524,793.38.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 36. Share capital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changes for the period||||||
|Item|Opening balance|New issue of|Bonus|Capitalization of|||Closing balance|
|||share|issue|surplus reserve|Others|Subtotal||
|2018||||||||
|I. Restricted tradable shares||||||||
||-|-|-|-|-|-|-|
|1 State-owned shares||||||||
||-|-|-|-|-|-|-|
|2. State-owned legal person shares||||||||
||160,106.00|-|-|-|-|-|160,106.00|
|3. Other domestic shares||||||||
||-|1,148,648,648.00|-|-|52,050.00|1,148,700,698.00|1,148,700,698.00|
|4. Other foreign shares||||||||
||160,106.00|1,148,648,648.00|-|-|52,050.00|1,148,700,698.00|1,148,860,804.00|
|Total restricted tradable shares||||||||
|II. Non-restricted tradable shares||||||||
|1. Ordinary shares denominated in|464,859,300.00|-|-|-|(3,976.00)|(3,976.00)|464,855,324.00|
|RMB||||||||
|2. Foreign capital shares listed|179,744,324.00|-|-|-|(48,074.00)|(48,074.00)|179,696,250.00|
|domestically||||||||
|3. Foreign capital shares listed|-|-|-|-|-|-|-|
|overseas||||||||
||-|-|-|-|-|-|-|
|4. Others||||||||
||644,603,624.00|-|-|-|(52,050.00)|(52,050.00)|644,551,574.00|
|Total non-restricted tradable shares||||||||
||644,763,730.00|1,148,648,648.00|-|-|-|1,148,648,648.00|1,793,412,378.00|
|III. Total shares||||||||
|2017||||||||
|I. Restricted tradable shares||||||||
||-|-|-|-|-|-|-|
|1 State-owned shares||||||||
||-|-|-|-|-|-|-|
|2. State-owned legal person shares||||||||
||305,100.00|-|-|-|(144,994.00)|(144,994.00)|160,106.00|
|3. Other domestic shares||||||||
||-|-|-|-|-|-|-|
|4. Other foreign shares||||||||
||305,100.00|-|-|-|(144,994.00)|(144,994.00)|160,106.00|
|Total restricted tradable shares||||||||
|II. Non-restricted tradable shares||||||||
|1. Ordinary shares denominated in|464,866,050.00|-|-|-|(6,750.00)|(6,750.00)|464,859,300.00|
|RMB||||||||
|2. Foreign capital shares listed|179,592,580.00|-|-|-|151,744.00|151,744.00|179,744,324.00|
|domestically||||||||
|3. Foreign capital shares listed|-|-|-|-|-|-|-|
|overseas||||||||
||-|-|-|-|-|-|-|
|4. Others||||||||
||644,458,630.00|-|-|-|144,994.00|144,994.00|644,603,624.00|
|Total non-restricted tradable shares||||||||
||644,763,730.00|-|-|-|-|-|644,763,730.00|
|III. Total shares||||||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS– continued 37. Capital Reserve
Unit: RMB
||||||
|-|-|-|-|-|
||Opening balance||||
|Item||Increase|Decrease|Closing balance|
||(restated)||||
|2018|||||
|Capital premium|18,848,680,489.20|1,164,197,108.39|583,183,507.54|19,429,694,090.05|
|Including：Capital contributed by investors|4,954,397,136.25|-|-|4,954,397,136.25|
|Differences arising from business|13,894,283,352.95|-|583,183,507.54|13,311,099,845.41|
|combination involving enterprises under common control|||||
|Others(Note)|-|1,164,197,108.39|-|1,164,197,108.39|
|Other capital reserve|(2,781,133.00)|-|-|(2,781,133.00)|
|Including: Transfer from capital reserve under the previous|(2,781,133.00)|-|-|(2,781,133.00)|
|accounting system|||||
|Total|18,845,899,356.20|1,164,197,108.39|583,183,507.54|19,426,912,957.05|

 Note: The income generated by China Merchants Port Holdings in the disposal of the company's equity in June 2018, referred to Notes (VI) 2.
Unit: RMB
||||||
|-|-|-|-|-|
||Opening balance||||
|Item||Increase|Decrease|Closing balance|
||(restated)||||
|2017|||||
|Capital premium|13,887,026,547.40|4,961,653,941.80|-|18,848,680,489.20|
|Including: Capital contributed by investors|163,560,083.00|4,790,837,053.25|-|4,954,397,136.25|
|Differences arising from business|13,723,466,464.40|170,816,888.55|-|13,894,283,352.95|
|combination involving enterprises under common control|||||
|Other capital reserve|(2,781,133.00)|-|-|(2,781,133.00)|
|Including: Transfer from capital reserve under the previous|(2,781,133.00)|-|-|(2,781,133.00)|
|accounting system|||||
|Total|13,884,245,414.40|4,961,653,941.80|-|18,845,899,356.20|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Other comprehensive income
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item||Opening balance(restated)|Amount incurred in current year|||||||Closingbalance|
||||Amount beforeincome taxincurred in currentyear||Less: Amount|Less: Incometax expense|After-taxincomeattributable tothe parentcompany owner|After-tax incomeattributable tominorityshareholders|The impact ofbusinesscombinationunder commoncontrol||
||||||included in othercomprehensive||||||
||||||income in theprior periods that||||||
||||||is transferred to||||||
||||||profit or loss for||||||
||||||the period||||||
||2018:||||||||||
||I. Other comprehensive income that will not be|(742,874,052.89)|(127,586,823.04)|-||1,125,715.00|(48,671,312.79)|(80,041,225.25)|867,218,499.76|75,673,134.08|
||reclassified subsequently to profit or loss||||||||||
||Including: Change as a result of remeasurement of the|-|(20,136,880.35)|-||-|(7,943,999.30)|(12,192,881.05)|7,943,999.30|-|
||net defined benefit plan liability or asset||||||||||
||Share of other comprehensive income of the investee|-|(116,954,783.85)|-||-|(46,138,662.23)|(70,816,121.62)|46,138,662.23|-|
||under the equity method that will not be reclassified to||||||||||
||profit or loss||||||||||
||Changes in fair value of other equity instruments|(742,874,052.89)|9,504,841.16|-||1,125,715.00|5,411,348.74|2,967,777.42|813,135,838.23|75,673,134.08|
||II. Other comprehensive income that will be reclassified|13,252,844.49|333,315,323.72|-||-|90,449,399.81|242,865,923.91|(90,449,399.81)|13,252,844.49|
||subsequently to profit or loss||||||||||
||Including: Share of other comprehensive income of the|100,000.00|(20,157,413.77)|-||-|(7,952,099.73)|(12,205,314.04)|7,952,099.73|100,000.00|
||investee under the equity method that will be reclassified||||||||||
||to profit or loss||||||||||
||Translation differences of financial statements|13,152,844.49|353,472,737.49|-||-|98,401,499.54|255,071,237.95|(98,401,499.54)|13,152,844.49|
||denominated in foreign currencies||||||||||
||Total|(729,621,208.40)|205,728,500.68|-||1,125,715.00|41,778,087.02|162,824,698.66|776,769,099.95|88,925,978.57|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Other comprehensive income– continued
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item||Opening balance(restated)|Amount incurred in current year|||||||Closing balance|
||||Amount beforeincome taxincurred incurrent year||Less: Amount|Less: Incometax expense|After-taxincomeattributable tothe parentcompany owner|After-tax incomeattributable tominorityshareholders|The impact ofbusinesscombinationunder commoncontrol||
||||||included in othercomprehensive||||||
||||||income in theprior periods that||||||
||||||is transferred to||||||
||||||profit or loss for||||||
||||||the period||||||
||2017:||||||||||
||I. Other comprehensive income that will not be|-|176,570,902.51|-||-|65,863,882.85|110,707,019.66|(65,863,882.85)|-|
||reclassified subsequently to profit or loss||||||||||
||Including: Change as a result of remeasurement of the|-|23,085,250.68|-||-|5,313,793.20|17,771,457.48|(5,313,793.20)|-|
||net defined benefit plan liability or asset||||||||||
||Share of other comprehensive income of the investee|-|153,485,651.83|-||-|60,550,089.65|92,935,562.18|(60,550,089.65)|-|
||under the equity method that will not be reclassified to||||||||||
||profit or loss||||||||||
||II. Other comprehensive income that will be reclassified|(8,039,646.43)|759,286,170.35|265,589,702.16||27,661,768.24|176,340,879.94|289,693,820.01|(175,365,879.94)|(7,064,646.43)|
||subsequently to profit or loss||||||||||
||Including: Share of other comprehensive income of the|100,000.00|445,196,749.12|-||-|175,630,117.53|269,566,631.59|(175,630,117.53)|100,000.00|
||investee under the equity method that will be reclassified||||||||||
||to profit or loss||||||||||
||Gains or losses on change in fair value of|5,572,500.00|514,409,289.75|265,589,702.16||27,661,768.24|87,348,744.15|133,809,075.20|(86,373,744.15)|6,547,500.00|
||available-for-sale financial assets||||||||||
||Translation differences of financial statements|(13,712,146.43)|(200,319,868.52)|-||-|(86,637,981.74)|(113,681,886.78)|86,637,981.74|(13,712,146.43)|
||denominated in foreign currencies||||||||||
||Total|(8,039,646.43)|935,857,072.86|265,589,702.16||27,661,768.24|242,204,762.79|400,400,839.67|(241,229,762.79)|(7,064,646.43)|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 40. Special reserve
Unit: RMB
||||||
|-|-|-|-|-|
||Opening balance||||
|Item|(restated)|Increase|Decrease|Closing balance|
|2018：|||||
|Production safety reserve|4,767,373.45|24,165,961.75|20,702,254.77|8,231,080.43|
|2017：|||||
|Production safety reserve|4,145,765.65|17,456,696.76|16,835,088.96|4,767,373.45|

 41. Surplus reserve
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|2018：|||||
|Statutory surplus reserve|520,074,434.56|7,101,474.11|-|527,175,908.67|
|2017：|||||
|Statutory surplus reserve|520,074,434.56|-|-|520,074,434.56|

Note：In accordance with the Company Law of the PRC and the Company's Articles of Association, the Company should appropriate10% of net profit for the year to the statutory surplus reserve, and the Company can cease appropriation when the statutory surplus reserve accumulates to more than50% of the registered capital. The statutory surplus reserve can be used to make up for the loss or increase the paid-in capital after approval.
According to the resolution of the board of directors, the company appropriates a statutory surplus reserve of RMB 7,101,474.11 based on10% of net profit for 2018 (2017: zero appropriation to surplus reserve).
42. Unappropriated profit
Unit: RMB
||||
|-|-|-|
|||Proportion of|
|Item|Amount|appropriation or|
|||allocation|
|2018:|||
|Unappropriated profit at the end of prior year before adjustment|3,566,083,142.17||
|Adjustment of total unappropriated profit at the beginning of year|5,716,548,113.47|Note1|
|Unappropriated profit at the beginning of year after adjustment|9,282,631,255.64||
|Add: Net profit attributable to shareholders of the Company for the year|1,090,418,910.77||
|Less: Appropriation to statutory surplus reserve|7,101,474.11|Note2|
|Appropriation to discretionary surplus reserve|-||
|Appropriation to risk preparation|-||
|Ordinary shares' dividends payable|850,443,359.86|Note3|
|Ordinary shares' dividends converted into share capital|-||
|Others|599,688,222.23|Note4|
|Unappropriated profit at the end of the year|8,915,817,110.21||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 41. Unappropriated profit - continued
Unit: RMB
||||
|-|-|-|
|||Proportion of|
|Item|Amount||
|||appropriation or allocation|
|2017:|||
|Unappropriated profit at the end of prior year before adjustment|3,381,390,887.86||
|Adjustment of total unappropriated profit at the beginning of year|4,254,259,872.38|Note1|
|Unappropriated profit at the beginning of year after adjustment|7,635,650,760.24||
|Add: Net profit attributable to shareholders of the Company for the year|2,365,214,907.45||
|Less: Appropriation to statutory surplus reserve|-||
|Appropriation to discretionary surplus reserve|-||
|Appropriation to risk preparation|-||
|Ordinary shares' dividends payable|319,802,810.08||
|Ordinary shares' dividends converted into share capital|-||
|Others|1,214,754,940.14|Note4|
|Unappropriated profit at the end of the year|8,466,307,917.47||

Note1: Details of adjustment to total unappropriated profit at the beginning ofyear：
As Notes (III) 31, due to the impact of changes in accounting policies, the Group increased the unappropriated profit at the beginning of the year by RMB 816,323,338.17. As Notes (VI) 2, due to the impact of business combination under common control, the unappropriated profit at the beginning of the year was increased by RMB
4,900,224,775.30, and the unappropriated profit at the beginning of the previous year was RMB 4,254,259,872.38.
Note2: Appropriation to statutory surplus reserve
According to the Articles of Association, the Company is required to transfer10% of its net profit to the statutory surplus reserve. The Company can cease appropriation when the statutory surplus reserve accumulated to more than50% of the register capital.
Note3: Profit distribution decided after the balance sheet date
According to the resolution of the shareholders' meeting of March 28, 2018, the company will distribute cash dividends of RMB 13.19 (including tax) for every 10 shares based on the total shares of 644,763,730 shares as of the end of 2017, and a total cash dividend of RMB 850,443,359.86.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 41. Unappropriated profit - continued
Note4: As Notes (VI) 2, on 25 December 2018, the Company acquired39.45% equity of China Merchants Port Holdings and included it as a subsidiary of the business combination under the same control. The Group included the corresponding financial statements in the preparation of the consolidated financial statements. The proportion of its shareholding of39.45% is calculated and the amount of the profit distribution of the China Merchants Port Holdings is calculated and reported.
Note5: Resolution of profit distribution after the balance sheet date
According to the 2018 annual profit distribution plan adopted by the Company at the 5th meeting of the 9th Board of Directors held on March 28, 2019, the company distributed cash dividends based on the total shares of 1,793,412,378 shares as of December 31, 2018. RMB 204,449,011.09. The above dividend distribution plan has yet to be reviewed and approved by the shareholders meeting.
43. Operating income and operating costs
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|||2018||||2017(restated)|||
||||Income||Cost||Income||Cost|
||Principal operating|9,570,796,336.11||5,517,782,669.86||7,460,150,682.76||4,481,568,589.16||
|Other operating||132,598,286.47||221,458,726.01||84,484,602.20||228,744,071.35||
||Total|9,703,394,622.58||5,739,241,395.87||7,544,635,284.96||4,710,312,660.51||

 44. Taxes and levies
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Property tax|50,993,199.89|28,897,407.11|
|Stamp duty|45,775,414.65|350,759.93|
|Land holding tax|15,095,001.85|13,874,451.73|
|City construction and maintenance tax|5,258,434.33|6,155,605.48|
|Education surcharges|4,059,161.54|4,014,776.21|
|Others(Note)|114,772,591.25|18,691,283.09|
|Total|235,953,803.51|71,984,283.55|

 Note: Others including: 1. Contribution for the financing of social security, a tax based on the corporation's income, the amount is BRL 28,039,842.78; 2. Tax for service based on services provided, the amount is BRL 23,229,627.12.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 45. Administrative expenses
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Employee's salary|702,986,443.49|534,635,252.36|
|Fees paid to agencies|233,972,825.17|38,630,088.41|
|Depreciation expenses|42,634,581.68|28,699,209.39|
|Amortization of intangible assets|14,013,965.69|14,109,534.56|
|Others|258,257,859.42|237,826,805.18|
|Total|1,251,865,675.45|853,900,889.90|

 46. Financial expenses
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Interest expense|1,672,764,416.74|1,159,304,941.02|
|Less: Capitalized interest expenses|38,663,084.94|29,632,413.22|
|Less: Interest income|272,453,293.86|116,797,403.30|
|Exchange differences|235,825,068.78|(74,223,354.90)|
|Handling fee|37,531,206.16|9,788,095.70|
|Others|8,413,790.07|6,966,783.16|
|Total|1,643,418,102.95|955,406,648.46|

 47. Impairment losses of assets
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|I. Bad debt losses||(7,843,782.40)|
|II. Impairment on long-term equity investments|-|640,585,551.00|
|Total|-|632,741,768.60|

 48. Impairment credit loss
Unit: RMB
||||
|-|-|-|
|Item|2018|2017|
|I. Impairment of credit loss on notes receivable and accounts|(3,102,192.00)||
|receivable|||
|II. Impairment of credit loss on other receivables|9,760,870.10||
|III. Impairment of credit loss on long-term receivables|784,171.05||
|IV. Others|85,731.45||
|Total|7,528,580.60||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 49. Other income
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item||2018|2017(restated)||Related to assets|
||||||/ related to|
||||||income|
||Recognition of deferred income|9,551,510.74|13,023,645.38|Related to assets||
||Shenzhen Municipal Finance Committee policy subsidy|5,767,400.00|-|Related to income||
||2017 annual port business support subsidy|5,602,326.79|-|Related to income||
||Central Infrastructure Investment--Brazil TCP Terminal Item|5,161,467.89|-|Related to income||
||(Previous Work Part) Grant Fund|||||
||Electricity subsidy|4,040,714.30|-|Related to income||
||2017 Port Container Throughput Business Increase Subsidy|3,500,000.00|-|Related to income||
||Special fund for the development of modern logistics industry in|3,000,000.00|-|Related to income||
||Shenzhen|||||
||Refund of withholding tax payment|2,334,770.36||Related to income||
||Financial subsidy of Container Throughput Trade|1,999,631.00|-|Related to income||
||Shenzhen Economic, Trade and Information Technology|1,904,900.00|-|Related to income||
||Committee 2017 Foreign Economic and Trade Development|||||
||Special funds (cross-border e-commerce) subsidies (trade|||||
||clearance facilitation platform)|||||
||Enterprise subsidy of Shenzhen Science and Technology|1,685,000.00|-|Related to income||
||Innovation Committee (the first batch of the fourth batch)|||||
||Shenzhen Science and Technology Innovation Committee 2017|1,450,000.00|-|Related to income||
||Corporate Research and Development Funding Fund|||||
||Research and development funding|1,239,000.00|881,000.00|Related to income||
||Shenzhen Science and Technology Innovation Committee - the|1,037,000.00|-|Related to income||
||third batch of enterprise funding in the high-tech zone|||||
||Fujian Provincial Port and Shipping Development Special Fund|1,029,000.00|-|Related to income||
||2017 International Capacity Cooperation Grant Fund|-|15,000,000.00|Related to income||
||2016 port business subsidy funds|-|5,058,295.00|Related to income||
||Qianhai cross-border e-commerce support funds|-|4,920,000.00|Related to income||
||Funding for cross-border e-commerce projects for special funds|-|2,040,000.00|Related to income||
||for central foreign trade and economic development|||||
||Others|6,877,406.56|3,235,522.63|Related to income||
||Total|56,180,127.64|44,158,463.01|||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 50. Investment income
(1) Details of investment income
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Long-term equity investments income under equity method|3,913,864,538.60|4,681,582,632.76|
|Investment income on sale of long-term equity investments|-|750,788,928.68|
|Investment income on sale of available-for-sale financial assets||265,589,701.73|
|Investment income on available-for-sale financial assets||73,333,443.50|
|Investment income on other equity instruments|8,228,975.00||
|Investment income on other non-current financial assets|45,661,915.63||
|Others|72,720.25|-|
|Total|3,967,828,149.48|5,771,294,706.67|

 There are no major restrictions on the remittance of the Group's investment income.
(2) Details of long-term equity investments income under equity method
Unit: RMB
|||||
|-|-|-|-|
|||2017||
|Investee|2018||Reason for changes|
|||(restated)||
|Shanghai International Port (Group) Co.,|2,571,370,986.64|2,986,681,299.47|Changes in net profit of investee|
|Ltd.||||
|Terminal Link SAS|357,885,181.99|304,871,290.69|Changes in net profit of investee|
|Nanshan Group|220,478,175.60|380,486,882.72|Changes in net profit of investee|
|Qingdao Qianwan United Container|141,704,248.41|163,655,930.56|Changes in net profit of investee|
|Terminal Co., Ltd.||||
|Dalian Port Co., Ltd.|112,882,708.11|105,414,178.27|Changes in net profit of investee|
|Euro-Asia Oceangate, S.a` r.l.|108,552,693.45|74,107,255.10|Changes in net profit of investee|
|COHA (Laizhou)|48,450,765.57|42,846,672.03|Changes in net profit of investee|
|Port of Newcastle|8,870,390.98|-|Changes in net profit of investee|
|China International Marine Containers|-|165,369,876.99|Sales of long-term equityinvestment|
|(Group) Shares Limited||||
|Zhanjiang Port (Group) Co., Ltd.|(36,596,428.75)|(32,515,588.04)|Changes in net profit of investee|
|Others|380,265,816.60|490,664,834.97|Changes in net profit of investee|
|Total|3,913,864,538.60|4,681,582,632.76||

51. Gains(losses) on changes in fair value
Unit: RMB
||||||
|-|-|-|-|-|
||Item||2018|2017(restated)|
||Other non-current financial assets|(948,440,538.45)|||
||Including: Financial assets measured at fair value through|(948,440,538.45)|||
||profit or loss||||
||other non-current liabilities|(125,966,299.23)|||
|t|Including: Financial liabilities measured at fair value|(125,966,299.23)|||
||hrough profit or loss||||
||Total|(1,074,406,837.68)|||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 52. Gains (losses) on disposal of assets
Unit: RMB
|||||
|-|-|-|-|
|Item|2018|2017(restated)|Amount recognized as|
||||non-recurring gain and|
||||loss in the current|
||||period|
|Gains (losses) on disposal of non-current assets|19,258,495.33|(391,053.09)||
|Including: Gains (losses) on disposal of fixed|18,151,195.97|(3,719,537.83)||
|assets||||
|Others|1,107,299.36|3,328,484.74||

 53. Non-operating income
Unit: RMB
|||||
|-|-|-|-|
||||Amount recognized as|
|||2017|non-recurring gain and|
|Item|2018|||
|||(restated)|loss in the current|
||||period|
|Compensation received for contracts|945,809.03|633,155.24|945,809.03|
|violation||||
|Insurance compensation received|540,000.00|-|540,000.00|
|Government grants|634,505.42|482,082.82|634,505.42|
|Others|65,008,375.53|22,390,340.09|65,008,375.53|
|Total|67,128,689.98|23,505,578.15|67,128,689.98|

 53. Non-operating expenses
Unit: RMB
|||||
|-|-|-|-|
||||Amount recognized as|
|||2017|non-recurring gain and|
|Item|2018|||
|||(restated)|loss in the current|
||||period|
|Penalties|49,204,874.59|276,000.00|49,204,874.59|
|Losses on retirement of non-current assets|32,095,701.53|44,424.51|32,095,701.53|
|Donation|12,070,408.91|42,165,120.27|12,070,408.91|
|Others|31,660,313.54|3,115,741.44|31,660,313.54|
|Total|125,031,298.57|45,601,286.22|125,031,298.57|

 54. Income tax expenses
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Current tax expenses|510,367,919.37|488,899,010.45|
|Deferred income tax|218,072,619.23|91,559,468.35|
|Total|728,440,538.60|580,458,478.80|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 54. Income tax expenses - continued
Reconciliation of income tax expenses to the accounting profit is as follows:
Unit: RMB
||||
|-|-|-|
|||2017|
|Item|2018||
|||(restated)|
|Accounting profit|3,614,355,292.56|6,018,008,167.79|
|Income tax expenses calculated at 25%|903,588,823.14|1,504,502,041.95|
|Effect of non-deductible expenses and losses|317,900,855.16|252,110,058.94|
|Accrued income tax expenses|509,742,164.89|337,151,647.63|
|Effect of previous deductible losses and deductible temporary|118,205,066.38|78,120,672.31|
|differences unrecognized as deferred tax assets|||
|Effect of tax-free income (Note)|(682,015,134.39)|(898,437,828.02)|
|Effect of tax preference policy|(309,855,093.00)|(325,608,548.39)|
|Effect of different tax rates of subsidiaries operating in other|(137,300,892.53)|(325,633,891.21)|
|jurisdictions|||
|Effect of recognition of deductible losses of|(44,825,432.51)|(26,783,743.21)|
|previously-unrecognized deferred tax assets|||
|Effect of adjustments to previous year income tax|(3,138,487.61)|95,154.17|
|Tax adjustments result in changes in the opening deferred tax assets|-|395,301.67|
|/ liabilities balance|||
|Others|56,138,669.07|(15,452,387.04)|
|Income tax expenses|728,440,538.60|580,458,478.80|

Note： Effect of tax-free income is mainly effect on income tax on gain of investments in joint venture and associates.
55. Assets with restricted ownership or usage right
Unit: RMB
|||||
|-|-|-|-|
|Item||Closing balance|Opening|
||||balance(restated)|
||Cash and bank balances (Note 1)|1,697,027,200.00||
||Fixed assets (Note 2.Note 3)|5,825,207,339.57||
||Equity investment in Colombo International Container Terminals|1,526,241,901.61||
||Limited (Note 4)|||
||Equity investment in Thesar Maritime Limited (Note 4)|767,331,789.70||
||Intangible assets (Note 3)|161,408,030.71||
||Construction in process (Note 3)|43,352,104.93||
||Total|10,020,568,366.52||

 Note1: See Notes (V) 1 for restrict cash.
Note2: See Notes (V) 13 financial leased fixed assets.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 55. Assets with restricted ownership or usage right - continued
Note3: Guangdong Yide Port Co. Ltd. acquired mortgage loans by pledged land with use right and property right, fixed assets and construction in process, details referred to notes (V) 29. As at December 31, 2018, the book value of the mortgage land use right in the Port of Suide was RMB 161,408,030.71, the book value of the mortgaged fixed assets was RMB 307,836,672.27, and the book value of the mortgaged construction in progress was RMB 43,352,104.93. TCP purchases fixed assets by way of a mortgage, and the book value of the fixed assets is RMB 977,216.17.
Note4: See notes (V) 29 pledged equity and equity investment.
56. Other comprehensive income
See notes (V) 38.
57. Notes to items in cash flow statement
(1) Operating cash inflow
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Contract compensation received|218,843,719.69|-|
|Interest income|214,787,250.36|114,433,142.20|
|Government grants|50,797,838.32|126,835,841.58|
|Guarantees and deposits|27,953,110.71|20,857,890.37|
|Insurance compensation received|16,320,537.80|7,700,961.48|
|Rentals|13,313,831.31|15,735,989.64|
|Refunds of harbor construction fee|96,876,815.04|91,598,931.94|
|Refunds of river channel occupation fee|-|14,469,500.00|
|Others|325,042,168.36|236,065,015.86|
|Total|963,935,271.59|627,697,273.07|

 (2) Operating cash outflow
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Administration expense and other operating expenses|255,069,427.76|110,684,200.65|
|Advance payment|155,172,493.64|40,679,722.24|
|Port construction fee|83,269,723.00|96,836,232.93|
|Berth dredging fee|73,263,986.30|15,853,578.00|
|Rentals|70,806,355.26|28,980,691.46|
|Port expenses|53,236,125.23|37,680,224.61|
|Guarantees and deposits|16,514,731.00|9,835,356.07|
|Cargo fee|2,668,097.85|3,006,275.75|
|Others|334,372,971.69|244,564,502.74|
|Total|1,044,373,911.73|588,120,784.45|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 57. Notes to items in cash flow statement - continued
(3) Investment cash inflow
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Cash borrowings repayment received|120,500,000.00|96,868,451.25|
|Interests received from structured deposit|36,115,992.14|-|
|Cash received from acquisition of subsidiaries|-|121,305,946.92|
|Total|156,615,992.14|218,174,398.17|

 (4) Investment cash outflow
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Restricted cash due to acquisition of HIPG|965,644,000.00|-|
|Structured cash deposit|695,000,000.00|-|
|Income tax expenses on disposal of other equity|25,463,391.23|44,950,077.56|
|instruments|||
|Cash borrowings|-|1,013,445,000.00|
|Total|1,686,107,391.23|1,058,395,077.56|

 (5) Net cash payment for acquisition of subsidiaries
Unit: RMB
|||
|-|-|
|Item|2018|
|Cash and cash equivalents paid for merge and acquisition in current period|5,468,066,151.65|
|Including: TCP|5,468,066,151.65|
|Less: Cash and cash equivalents of subsidiaries on acquisition date|896,117,055.37|
|Including: TCP|896,117,055.37|
|Add: Cash and cash equivalents paid this year for previous merge and|4,359,147,699.53|
|acquisition||
|Including: HIPG|4,359,147,699.53|
|Net cash payment for acquisition of subsidiaries|8,931,096,795.81|

 (6) Financing cash inflow
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|CMPH disposes stock equity of the company|3,876,395,683.27|-|

Note：See Notes (VI) 2.
(7) Financing cash outflow
Unit: RMB
||||
|-|-|-|
|Item|2018|2017(restated)|
|Debt issue costs|104,284,657.11|3,788,342.21|
|Payment for financial lease|39,828,477.15|28,196,148.11|
|Repayment to stock holders|1,833,400.80|51,264,227.69|
|Others|250,000.00|-|
|Total|146,196,535.06|83,248,718.01|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 58. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Supplementary information|Closing balance||
|||(restated)|
|1. Reconciliation of net profit to cash flows from operating|||
|activities:|||
|Net profit|2,885,914,753.96|5,437,549,688.99|
|Add: Provision for impairment losses of assets|-|632,741,768.60|
|Impairment of credit loss|7,528,580.60||
|Depreciation of fixed assets|1,298,671,209.43|997,765,905.13|
|Depreciation of investment property|183,248,437.37|196,198,784.24|
|Amortization of intangible assets|526,994,590.78|334,246,119.42|
|Amortization of long-term prepaid expenses|19,045,474.75|19,088,228.38|
|Losses (Gains) on disposal of fixed assets , intangible assets and|(19,258,495.33)|391,053.09|
|other long-term assets|||
|Losses on retirement of fixed assets , intangible assets and|32,095,701.53|44,424.51|
|other long-term assets|||
|Losses on changes in fair value|1,074,406,837.68|-|
|Financial expenses|1,869,926,400.58|1,080,537,549.18|
|Losses (Gains) arising from investments|(3,967,828,149.48)|(5,771,294,706.67)|
|Decrease (Increase) in deferred tax assets|(24,282,252.12)|1,398,127.04|
|Increase in deferred tax liabilities|242,354,871.34|378,486,734.05|
|Decrease in inventories|(25,110,483.47)|2,771,127.20|
|Decrease(Increase) in operating receivables|(261,424,216.35)|(19,560,328.96)|
|Increase in operating payables|446,292,163.57|184,672,562.08|
|Net cash flows from operating activities|4,288,575,424.84|3,475,037,036.28|
|2．Significant investing and financing activities that do not involve|||
|cash receipts and payments:|||
|Conversion of debt into capital|-|-|
|Convertible bonds due within one year|-|-|
|Fixed assets acquired under finance leases|-|-|
|3．Net changes in cash and cash equivalents:|||
|Closing balance of cash|5,373,281,504.75|7,729,460,082.75|
|Less: Opening balance of cash|7,729,460,082.75|3,253,467,084.65|
|Add: Closing balance of cash equivalents|-|-|
|Less: Opening balance of cash equivalents|-|-|
|Net increase (Decrease) in cash and cash equivalents|(2,356,178,578.00)|4,475,992,998.10|

 (2) Composition of cash and cash equivalents
Unit: RMB
||||
|-|-|-|
|||Openingbalance(restated)|
|Item|Closing balance||
|I. Cash|5,373,281,504.75|7,729,460,082.75|
|Including: Cash on hand|349,650.07|598,357.70|
|Bank deposits|5,116,481,444.13|7,716,378,695.65|
|Other monetary funds|256,450,410.55|12,483,029.40|
|II. Cash equivalents|-|-|
|III. Closing balance of cash and cash equivalents|5,373,281,504.75|7,729,460,082.75|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 59. Foreign currency monetary items
||||||||
|-|-|-|-|-|-|-|
|Item|||Closing balance of|Exchange rate||Closing amount in|
||||foreign currency|||RMB|
||Cash and bank balances||||2,134,538,905.15||
||Including: HKD|388,017,311.40||0.8762|339,980,768.25||
||USD|181,063,964.19||6.8632|1,242,678,199.03||
||EUR|45,380,138.82||7.8473|356,111,563.36||
||RMB|195,768,374.51||1.0000|195,768,374.51||
||Accounts receivable||||159,141,161.37||
||Including: HKD|10,874,226.31||0.8762|9,527,997.09||
||USD|7,793,262.71||6.8632|53,486,720.63||
||EUR|12,249,620.08||7.8473|96,126,443.65||
||Other receivables||||574,646,768.14||
||Including: HKD|1,980,078.38||0.8762|1,734,944.68||
||USD|2,868,796.66||6.8632|19,689,125.24||
||EUR|27,528,800.67||7.8473|216,026,757.50||
||RMB|337,195,940.72||1.0000|337,195,940.72||
||Short-term borrowings||||1,825,358,000.00||
||Including: HKD|830,000,000.00||0.8762|727,246,000.00||
||USD|160,000,000.00||6.8632|1,098,112,000.00||
||Notes and accounts payables||||45,071,940.89||
||Including: HKD|1,614,214.78||0.8762|1,414,374.99||
||USD|98,070.00||6.8632|673,074.02||
||EUR|5,477,615.47||7.8473|42,984,491.88||
||Other payables||||512,625,788.26||
||Including: HKD|20,347,108.99||0.8762|17,828,136.90||
||USD|44,990,560.79||6.8632|308,779,216.81||
||EUR|9,864,946.28||7.8473|77,413,192.94||
||RMB|108,605,241.61||1.0000|108,605,241.61||
||Non-current liabilities due within one year||||220,116,765.00||
||EUR|28,050,000.00||7.8473|220,116,765.00||
||Long-term borrowings||||1,926,978,130.00||
||USD|100,000,000.00||6.8632|686,320,000.00||
||EUR|158,100,000.00||7.8473|1,240,658,130.00||
||Bonds payable||||21,384,578,670.28||
||RMB|3,000,000,000.00||1.0000|3,000,000,000.00||
||USD|2,678,718,188.35||6.8632|18,384,578,670.28||
||Long-term payables||||423,754,200.00||
||EUR|54,000,000.00||7.8473|423,754,200.00||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VI) CHANGES IN SCOPE OF CONSOLIDATION
1. Business combination involving enterprises not under common control
(1) Business combination involving enterprises not under common control
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Name ofacquiree|Acquisition Date|Acquisition Cost|Pabct|ropor|tidsa)|AcquisitionMethod|Purchase Date|Basis fordetermining theacquisition date|Revenue from thebeginning of theperiod to thecombination date|Net profit fromthe beginning ofthe period to thecombination date|
|||||on of|||||||
|||||equity|||||||
|||||cquire|||||||
|||||by|||||||
|||||usines|||||||
|||||ombin|||||||
|||||ion (%|||||||
|TCP|23 February 2018|5,622,128,181.38|90.00|||CashPayment|23 February 2018|Transfer ofcontrol|1,256,737,392.95|69,660,138.47|

Note： As at 4 September 2017, the Group signed an agreement with TCP and its subsidiaries ("TCP Group") and multiple independent third parties who were former TCP shareholders. Pursuant to the agreement, the Group subscribed for90% of the issued share capital of TCP at a price of BRL 2,811,941,923.95 (equivalent to RMB 5,468,066,151.65), and the Group issued a put option to the minority shareholders of the TCP group (hereinafter referred to as "option holders"). The relevant rights may be exercised two years after February 23, 2018. The option holder has the right to sell the stocks of TCP Group it holds in cash during the exercise period and to require the Group to purchase all remaining shares of the TCP Group it holds. At recognition, the fair value of the put option on the date of purchase is equivalent to RMB 154,062,029.73. The Group also acquires call options to purchase the entire remaining equity of the TCP Group held by the option holder. The above transaction was completed on February 23, 2018. Since then, the Group has been authorized to assign most of the board members of the TCP Board of Directors, and the Board of Directors is the authority that dominates the TCP-related business. Therefore, the Group is able to control TCP and incorporate it into the consolidated financial statements of the Group.
(2) Acquisition cost and goodwill
Unit: RMB
||||
|-|-|-|
|Acquisition cost||TCP|
|Consideration|5,622,128,181.38||
|Less: Fair value per share of acquired net identifiable assets|1,652,753,226.52||
|Goodwill|3,969,374,954.86||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VI) CHANGES IN SCOPE OF CONSOLIDATION - continued
1. Business combination involving enterprises not under common control - continued (3) Carrying amount of the acquiree's assets and liabilities on the combination date
Unit: RMB
|||||
|-|-|-|-|
|||TCP||
|||Fair Value on|Book Value onCombination Date|
|||Combination Date||
|Assets:||||
|Current Assets|1,136,212,899.49||1,136,212,899.49|
|Fixed Assets|1,405,437,560.59||1,195,347,281.14|
|Construction in progress|468,950,467.03||468,950,467.03|
|Intangible assets|5,386,643,891.15||3,830,786,653.38|
|Deferred tax assets|31,600,449.30||31,600,449.30|
|Liabilities:||||
|Current liabilities|686,328,006.23||686,328,006.23|
|Long-term borrowings|763,828,636.10||763,828,636.10|
|Bonds payable|1,108,636,631.38||1,108,636,631.38|
|Long-term payables|3,425,767,336.76||3,425,767,336.76|
|Provisions|20,880,330.98||20,880,330.98|
|Deferred tax liabilities|587,011,852.20||126,850,494.80|
|Net assets|1,836,392,473.91||530,606,314.09|
|Less: Minority interests|183,639,247.39||53,060,631.41|
|Net assets acquired|1,652,753,226.52||477,545,682.68|

 2. Business combination involving enterprises under common control
(1) Business combination involving enterprises under common control
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Basis for||Basis for|||||
||||||Revenue from the|Net profit from the|||
|||formation of||determining|||||
||Acquired Equity||||beginning of the|beginning of the|Revenue in the|Net profit in the|
|Name of merged party||combination|Combination date|the|||||
||in proportion||||period to the|period to the|comparative period|comparative period|
|||under the same||combinatio|||||
||||||combination date|combination date|||
|||control||n date|||||
|CMPH|39.45|Note 1|25 December 2018|Note 1|7,729,738,537.45|2,685,592,888.44|5,668,455,620.87|4,928,289,403.4|

 Note: The Company and the acquiree are ultimately controlled by China Merchants Group Limited ("CMG") both before and after the combination, and that control is not transitory. Prior to June 8, 2018, CMPH indirectly held33.58% of the company's shares, and at the same time entrusted to manage32.52% of the shares held by Nanshan Group, and held a total of66.10% of the voting rights of the company, which can control the company. Due to the existence of a certain degree of horizontal competition between CMPH and the
Company, in order to completely solve the problem of horizontal competition, the
Company, CMPH and related parties implemented major asset restructuring transactions
during the year.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VI) CHANGES IN SCOPE OF CONSOLIDATION - continued
2. Business combination involving enterprises under common control - continued (1) Business combination involving enterprises under common control - continued
As at 5 February 2018, CMPH and its wholly-owned subsidiary Malai warehousing (Shenzhen) Co., Ltd. (hereinafter referred to as "Malai warehousing") and China Merchants Port Development (Shenzhen) Co., Ltd. signed a share transfer agreement, sale of 161,190,933 shares of A common stock shares of the Company held by China Merchants Holdings Limited (Shenzhen) Co., Ltd., representing approximately25% of the total issued shares of the Company on the date of the agreement; CMPH has a
wholly-owned subsidiary Feng Enterprise Co., Ltd. and Broadford International Co., Ltd. signed a share transfer agreement to sell 55,314,208 shares of B common stock shares of the Company to Broadford International Co., Ltd., accounting for8.58% of the total issued shares of the company on the date of the agreement; Nanshan Group, a joint venture of the Port Holdings, signed a share transfer agreement with China Merchants Kongtong Development (Shenzhen) Co., Ltd., and sold 209,687,067 A common stock shares of its shares to China Merchants Gangtong Development (Shenzhen) Co., Ltd.32.52% of all issued shares of the company on the date of signing the agreement. On the same day, CMPH and Nanshan Group signed an agreement to terminate the agreement to host the A common stock shares of the Company held by Nanshan Group. As at June 8, 2018, the above equity transaction was completed, and CMPH was no longer the parent company of the company.
As at 19 June 2018, the company and CMID signed the "issuing shares to purchase assets agreement", according to the agreement. The company purchased 1,313,541,560 ordinary shares of CMPH held by CMID, representing approximately39.45% of the issued shares of CMPH (hereinafter referred to as "Target assets"), the transaction amount is RMB 246.50 million. On 16 November 2018, the company's shares issued to CMID were completed in China Securities Depository and Clearing Co., Ltd. Shenzhen Branch, and CMID officially became a shareholder of the Company. On the same day, the "Consensus Action Agreement on China Merchants Port Holdings Limited" signed by the Company and CMHK came into effect. According to the agreement, CMHK has voting rights on22.64% of CMPH, which it is entrusted to exercise. China Merchants Port Controlling Shareholders' Meeting held unanimous agreement with the Company when voting on the deliberation matters, and voted based on the opinions of the Company. After the completion of the above transaction, CMID acquired64.05% of the shares of the Company; the Company holds a total of62.09% of the voting rights of CMPH, which can control it. Therefore, starting from December 25, 2018, the Company refers to the accounting treatment method of business combination under the common control, and incorporates CMPH into the consolidated scope of the Company's consolidated financial statements from the beginning of the comparative financial statements.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VI) CHANGES IN SCOPE OF CONSOLIDATION - continued
2. Business combination involving enterprises under common control - continued (2) Acquisition cost
Unit: RMB
|||
|-|-|
|Acquisition cost|CMPH|
|Face value of issued equity securities|1,148,648,648.00|
|Contingent consideration|-|
|Total|1,148,648,648.00|

 (3) Contingent consideration
As at 19 June 2018 and 9 July 2018, the Company and CMID signed the "Compensation Agreement for the Issuance of Shares to Purchase Assets" and the "Supplemental Agreement for the Issuance of Assets for Impairment Compensation Agreement". It is agreed that the company will conduct an impairment test in the year of completion of the transaction of the CMPH Shares held by CMID by way of issuance of shares (hereinafter referred to as "impairment compensation period"). During the period of the value compensation period, the value at the end of any accounting year is less than the purchase price, and CMID compensates the company for the impairment of the company's shares.
The valuation method of the underlying asset value adopts the comparable company method and the comparable transaction method, and combines the value of the underlying asset's net asset value and asset status, profit level, and industry status as reference.
As at 31 December 2018, after calculation and estimation, the management of the Company considered that there was no impairment of the underlying assets during the year and the fair value of the contingent consideration was zero.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VI) CHANGES IN SCOPE OF CONSOLIDATION - continued
2. Business combination involving enterprises under common control - continued (4) Carrying amount of the acquiree's assets and liabilities on the combination date
Unit: RMB
||||||
|-|-|-|-|-|
|||Combining date||At the end of last year|
|Assets:|||||
|Cash and bank balances|6,286,625,388.23||7,010,046,720.27||
|Notes and accounts receivable|886,192,452.65||687,058,097.67||
|Prepayments|120,136,139.67||68,274,723.92||
|Other receivables|784,384,329.86||1,102,454,504.60||
|Inventories|94,885,983.62||67,967,109.18||
|Assets held for sale|115,356,162.94||-||
|Other current assets|1,165,966,118.29||1,169,773,192.59||
|Available-for-sale financial assets|||3,059,822,735.68||
|Long-term receivables|793,840,080.19||9,669,034.35||
|Long-term equity investments|49,203,721,619.70||42,671,121,909.29||
|Other equity investments|96,101,614.30||||
|Other non-current financial assets|2,087,872,081.94||||
|Investment properties|5,868,106,799.88||6,037,804,900.44||
|Fixed assets|19,873,743,830.72||19,999,622,807.44||
|Construction in progress|5,323,807,106.87||2,256,101,893.73||
|Intangible assets|19,631,243,508.67||14,899,396,341.07||
|Goodwill|7,331,044,944.18||3,046,815,005.07||
|Long-term prepaid expenses|184,721,499.76||202,064,891.53||
|Deferred tax assets|52,289,927.47||31,672,836.18||
|Other non-current assets|247,632,416.27||95,415,126.79||
|Liabilities:|||||
|Short-term borrowings|2,478,045,312.62||2,580,000,000.00||
|Notes and accounts payable|347,093,777.13||236,483,248.53||
|Receipts in advance|28,185,109.50||61,659,604.71||
|Contract liabilities|47,581,489.59||||
|Employee benefits payable|379,272,707.40||295,466,425.37||
|Taxes payable|256,463,960.76||168,341,559.91||
|Other payables|2,075,705,657.54||6,357,346,447.29||
|Non-current liabilities due within one year|2,002,817,943.15||2,393,237,748.47||
|Other current liabilities|402,659,721.80||285,472,328.45||
|Long-term borrowings|6,971,479,842.18||7,670,516,491.15||
|Bonds payable|22,097,467,096.40||10,292,778,301.33||
|Long-term payable|1,266,057,088.66||1,247,806,274.43||
|Long-term employee benefits payable|375,325,127.65||350,750,123.90||
|Provisions|28,276,275.75||-||
|Deferred income|55,520,260.40||66,808,802.84||
|Special payables|-||10,412,745.10||
|Deferred tax liabilities|2,666,838,286.93||1,982,121,444.46||
|Other non-current liabilities|3,752,276,691.95||54,763,901.68||
|Net assets|74,916,605,655.80||68,361,116,382.18||
|Less: Minority interests|49,740,467,883.87||45,770,803,019.72||
|Net assets acquired|25,176,137,771.93||22,590,313,362.46||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VI) CHANGES IN SCOPE OF CONSOLIDATION - continued
3. Changes in scope of consolidation due to other reasons
(1) New subsidiaries due to assets acquisition in this period
Unit: RMB
|||
|-|-|
|Name of subsidiaries|Closing balance of net assets|
|Shenzhen Haixing Xiaoyetian Logistics Development Co., Ltd.|10,378,526.33|
|China Merchants Port (Zhoushan) RoRo Terminal Co., Ltd.|49,755,188.46|
|China Merchants Port (Zhoushan) RoRo Logistics Co., Ltd.|24,178,813.68|

 Note: As at 23 July 2018, Shenzhen Haixing Port Development Co., Ltd., a subsidiary of the Company, acquired79.57% equity of Shenzhen Haixing Xiaoyetian Logistics
Development Co., Ltd. for RMB 132,453,913.00.
As at 29 August 2018, the Company acquired51% equity of China Merchants Port (Zhoushan) RoRo Logistics Co., Ltd. and100% equity of China Merchants Port (Zhoushan) RoRo Terminal Co., Ltd. for RMB 149,709,800.00.
The above acquisitions are asset acquisitions and do not form a business combination.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VII) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group
|||||||||
|-|-|-|-|-|-|-|-|
||Principal place of|Place of|||Proportion of||Proportion of ownership Interest|
|||||Registered Capital (in ten|ownership Interest (%)|||
|Full name of the subsidiary|business|incorporation|Nature of business|thousand Yuan unless|Direct|Direct|(%)|
|||||otherwise stated)|ownership|ownership||
||||||interest|interest||
|Shenzhen Chiwan International Freight Agency Co.,|Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|550.00|100.00|-|Established through investment|
|Ltd.||||||||
||Hong Kong SAR,PRC|Hong Kong SAR,PRC|Investment|HKD 1,000,000.00|100.00|-|Established through investment|
|Chiwan Wharf Holdings (Hong Kong) Limited.||||||||
||Dongguan, PRC|Dongguan, PRC|Logistics supportservices|45,000.00|85.00|-|Established through investment|
|Dongguan Chiwan Warf Co., Ltd. ("DGW")||||||||
||Dongguan, PRC|Dongguan, PRC|Logistics supportservices|40,000.00|100.00|-|Established through investment|
|DGT.||||||||
||Hong Kong SAR,PRC|Hong Kong SAR,PRC|Investment|HKD 10,000.00|100.00|-|Established through investment|
|Hinwin Development Limited||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|28,820.00|100.00|-|Combination involving enterprisesunder common control|
|CHCC||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|1,500.00|100.00|-|Combination involving enterprisesunder common control|
|Shenzhen Chiwan Transportation Co., Ltd.||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|USD 95,300,000.00|55.00|20.00|Combination involving enterprisesunder common control|
|CCT||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|2,400.00|100.00|-|Combination involving enterprisesunder common control|
|Shenzhen Chiwan Tugboat Co., Ltd.||||||||
||Hong Kong SAR,PRC|Hong Kong SAR,PRC|Logistics supportservices|HKD 800,000.00|100.00|-|Combination involving enterprisesunder common control|
|Chiwan Shipping (Hong Kong) Limited||||||||
||Hong Kong SAR,PRC|Hong Kong SAR,PRC|Investment|HKD39,070.13million|39.45|-|Combination involving enterprisesunder common control|
|China Merchants Port Holdings (Note 1)||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|70,000.00|40.00|60.00|Combination involving enterprisesunder common control|
|CMBL.||||||||
|China Merchants International Information|Shenzhen, PRC|Shenzhen, PRC|InformationTechnology|5,000.00|23.16|76.84|Combination involving enterprisesunder common control|
|Technology Co., Ltd.||||||||
|China Merchants International (China) Investment|Shenzhen, PRC|Shenzhen, PRC|Investment|USD 30,000,000.00|-|100.00|Combination involving enterprisesunder common control|
|Co., Ltd.||||||||
||Qingdao PRC|Qingdao PRC|Logistics supportservices|USD 206.30 million|-|100.00|Combination involving enterprisesunder common control|
|CMT||||||||
||Hong Kong SAR,PRC|Hong Kong SAR,PRC|Logistics supportservices|HKD 500,000.00|-|100.00|Combination involving enterprisesunder common control|
|CMHIT||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|55,000.00|-|100.00|Combination involving enterprisesunder common control|
|China Merchants Port (Shenzhen) Co., Ltd.||||||||
||Shenzhen, PRC|Shenzhen, PRC|Engineeringsupervision|300.00|-|100.00|Combination involving enterprisesunder common control|
|SZHQ.||||||||
||Shenzhen, PRC|Shenzhen, PRC|Storage|HKD 100.00 million|-|100.00|Combination involving enterprisesunder common control|
|ATJ||||||||
||Shenzhen, PRC|Shenzhen, PRC|Storage|HKD 100.00 million|-|100.00|Combination involving enterprisesunder common control|
|ASJ||||||||
|China Merchants International Terminal (Qingdao)|Qingdao PRC|Qingdao PRC|Logistics supportservices|USD 44.00 million|-|90.10|Combination involving enterprisesunder common control|
|Co., Ltd.||||||||
||Sri Lanka|Sri Lanka|Logistics supportservices|USD 150.00 million|-|85.00|Combination involving enterprisesunder common control|
|Colombo International Container Terminals Limited||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|20,000.00|-|100.00|Combination involving enterprisesunder common control|
|SMPS||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|33,500.00|-|100.00|Combination involving enterprisesunder common control|
|SMTC||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|20,000.00|-|100.00|Combination involving enterprisesunder common control|
|SMWC||||||||
||Zhangzhou, PRC|Zhangzhou, PRC|Logistics supportservices|1,500.00|-|70.00|Combination involving enterprisesunder common control|
|Zhangzhou China Merchants Tugboat Co Ltd.||||||||
||Zhangzhou, PRC|Zhangzhou, PRC|Logistics supportservices|100,000.00|-|60.00|Combination involving enterprisesunder common control|
|Zhangzhou China Merchants Port Co Ltd.||||||||
||Zhangzhou, PRC|Zhangzhou, PRC|Logistics supportservices|44,450.00|-|31.00|Combination involving enterprisesunder common control|
|ZCMG(Note2)||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|HKD 618.20 million|-|80.00|Combination involving enterprisesunder common control|
|China Merchants (SCT) Holdings Company Limited||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|60,854.90|-|80.00|Combination involving enterprisesunder common control|
|Shekou Container Terminals (Phase II) Co., Ltd.||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|127,600.00|-|80.00|Combination involving enterprisesunder common control|
|SCT3||||||||
||Shenzhen, PRC|Shenzhen, PRC|Storage|6,060.00|-|80.00|Combination involving enterprisesunder common control|
|AYJ||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|53,072.92|-|67.00|Combination involving enterprisesunder common control|
|Shenzhen Haixing Port Development Co., Ltd.||||||||
||Foshan, PRC|Foshan, PRC|Logistics supportservices|21,600.00|-|51.00|Combination involving enterprisesunder common control|
|YDG||||||||
||British VirginIslands|British VirginIslands|Investment|USD 120.00|-|85.42|Combination involving enterprisesunder common control|
|Mega Shekou Container Terminals Limited||||||||
||Cyprus|Cyprus|Investment|EUR 5,000.00|-|50.00|Combination involving enterprisesunder common control|
|Thesar Maritime Limited||||||||
||Togolese Republic|Togolese Republic|Logistics supportservices|FCFA 200.00 million|-|35.00|Combination involving enterprisesunder common control|
|Lomé Container Terminal S. A. (Note3)||||||||
||Sri Lanka|Sri Lanka|Logistics supportservices|USD 794.00 million|-|85.00|Combination involving enterprisesunder common control|
|HIPG||||||||
||Shantou, PRC|Shantou, PRC|Logistics supportservices|12,500.00|-|60.00|Combination involving enterprisesunder common control|
|Shantou China Merchants Port Co., Ltd.||||||||
||Shenzhen, PRC|Shenzhen, PRC|Property rentalservices|80,000.00|-|100.00|Combination involving enterprisesunder common control|
|JYRT||||||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VII) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(1) Composition of the Group - continued
|||||||||
|-|-|-|-|-|-|-|-|
||Principal place of|Place of|||Proportion of||Proportion of ownership Interest|
|||||Registered Capital (in ten|ownership Interest (%)|||
|Full name of the subsidiary|business|incorporation|Nature of business|thousand Yuan unless|Direct|Direct|(%)|
|||||otherwise stated)|ownership|ownership||
||||||interest|interest||
||Shenzhen, PRC|Shenzhen, PRC|Property rentalservices|20,000.00|-|100.00|Combination involving enterprisesunder common control|
|QHW||||||||
||Shenzhen, PRC|Shenzhen, PRC|InvestmentConsulting|4,000|-|75.00|Combination involving enterprisesunder common control|
|JZZ||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|200|-|60.29|Combination involving enterprisesunder common control|
|Shenzhen Lianda Tugboat Co., Ltd.||||||||
||Zhangzhou, PRC|Zhangzhou, PRC|Logistics supportservices|200|-|84.00|Combination involving enterprisesunder common control|
|Zhangzhou Zhongli Outer Wheel Tally Co., Ltd||||||||
|China Merchants Holdings|Djibouti|Djibouti|Logistics supportservices|USD 38.14 million|-|100.00|Combination involving enterprisesunder common control|
|(Djibouti) FZE||||||||
||Brazil|Brazil|Logistics supportservices|BRL 68.85 million|-|90.00|Combination involving enterprisesnot under common control|
|TCP(Note1)||||||||
|China Merchants Port (Zhoushan) RoRo Logistics|Shantou, PRC|Shantou, PRC|Logistics supportservices|17,307.86|51.00|-|Assets Acquisition|
|Co., Ltd. (Note1)||||||||
|China Merchants Port (Zhoushan) RoRo Terminal|Shantou, PRC|Shantou, PRC|Logistics supportservices|5,000.00|-|51.00|Assets Acquisition|
|Co., Ltd. (Note1)||||||||
|Shenzhen Haixing Xiaoyetian Logistics|Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|7,066.79|-|79.57|Assets Acquisition|
|Development Co., Ltd. (Note1)||||||||

Note 1: See notes (VI).
Note 2: The Group and China Merchants Zhangzhou Development Zone Co., Ltd. signed the "Equity Custody Agreement". China Merchants Zhangzhou Development Zone Co., Ltd. entrusted29% of its equity in ZCMG to the Group's operations and management. Therefore, the Group's voting rights to ZCMG is60%, which included in the
consolidation scope of the Group.
Note 3: The Group has the right to appoint the majority of Executive Committee members ofLomé Container Terminal S.A., so the Group has included the company in the consolidated financial statements.
(2) Material non-wholly-owned subsidiaries
Unit: RMB
||||||
|-|-|-|-|-|
|Name of the subsidiary||Proportion of|Profit or lossattributable tominorityshareholders atthe end of theperiod|Payments fordividends tominorityshareholders inthe current period|
|||ownership|||
|||interest held|||
|||by the|||
|||minority|||
|||shareholders|||
|||(%)|||
|CMPH|60.55||1,795,466,614.72|1,801,409,418.27|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VII). EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(3) Significant financial information of material non-wholly-owned subsidiaries
Unit: RMB
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of thesubsidiary||Closing balance||||||||||Opening balance||||||||
||Current assets|Current assets||Non-current|Total assets|Current liabilities||Non-current|Total liabilities|Total liabilities|Current assets|Current assets|Non-current assets|Total assets|Current liabilities||Non-current|Total liabilities|Total liabilities|
|||||assets||||liabilities|||||||||liabilities|||
|CMPH|9,453,546,575.26||110,694,125,429.95||120,147,672,005.21|8,017,825,679.49|37,213,240,669.92||45,231,066,349.41||10,105,574,348.23||92,309,507,481.57|102,415,081,829.80|12,378,007,362.73|21,675,958,084.89||34,053,965,447.62||

 Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of the subsidiary|||2018||||||2017|||||
|||Operating income||Net profit|Total comprehensive income||Cash flows from operating|Operating income||Net profit||Total comprehensive income|Operating cash flows|
||||||||activities||||Net profit|||
||CMPH|7,729,738,537.45||2,685,592,888.44|2,886,818,529.12|3,595,234,888.15||5,668,455,620.87||4,928,289,403.49||5,569,920,005.94|2,495,218,955.91|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VII) EQUITY IN OTHER ENTITIES - continued
2. Interests in joint ventures and associates
(1) Material joint ventures or associates
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Investee||||Proportion of ownership interests held by|||
|||||the Group (%)||Accounting method ofinvestments in joint|
||Principal place of|Place of||Directly|Indirectly|ventures and associates|
||business|incorporation|Nature of business||||
|Joint ventures|||||||
||Shanghai, PRC|Shanghai, PRC|Port and containerterminal business|-|26.77|Equity method|
|Shanghai International Port (Group) Co., Ltd.|||||||

(2) Financial information of material joint venture
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|||Shanghai International Port (Group) Co., Ltd.|||
||||Closing balance/2018||Opening balance/2017|
||Current assets|47,842,620,837.32||50,265,638,309.88||
|I|ncluding: cash and cash equivalent|27,935,157,994.83||20,246,034,398.90||
||Non-current assets|96,524,413,178.58||90,969,266,684.14||
|T|otal assets|144,367,034,015.90||141,234,904,994.02||
||Current liabilities|31,676,398,710.35||38,083,862,202.13||
||Non-current liabilities|30,340,320,855.30||26,094,575,871.54||
|T|otal liabilities|62,016,719,565.65||64,178,438,073.67||
||Minority interests|6,802,318,747.82||7,572,086,010.64||
|T|otal equity attributable to shareholders of the parent company|75,547,995,702.43||69,484,380,909.71||
|i|Net assets calculated based on the proportion of ownership|20,216,643,649.97||18,378,618,750.62||
||nterest|||||
||Adjustments|||||
|-|Goodwill|2,076,585,747.12||1,834,571,145.21||
|-|Others|(105,669,326.14)||(72,729,483.24)||
||Carrying amounts of equity investments in Joint Ventures|22,187,560,070.95||20,140,460,412.59||
|Fq|air value of joint venture equity investment with public|32,129,272,123.48||40,766,914,309.10||
||uotation|||||
|I|ncome tax expenses|38,042,544,621.37||37,423,946,226.91||
||Net profit|11,472,021,103.16||12,846,413,455.93||
||Other comprehensive income|(954,348,960.96)||1,525,862,566.50||
|T|otal comprehensive income|10,517,672,142.20||14,372,276,022.43||
||Dividends received from joint ventures in the current year|1,059,194,508.74||913,488,707.16||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VII) EQUITY IN OTHER ENTITIES - continued
2. Interests in joint ventures and associates - continued
(3) Summarized financial information of immaterial associates and joint ventures
Unit: RMB
||||||
|-|-|-|-|-|
|||Closing balance/2018||Opening balance/2017|
|Joint ventures:|||||
|Total carrying amounts of investment|11,230,302,154.26||8,933,914,027.28||
|Aggregate of following items calculated based on|||||
|the proportion of ownership interest|||||
|- Net profit|429,904,250.47||376,916,082.57||
|- Other comprehensive income|(5,608,904.12)||22,002,683.51||
|- Total comprehensive income|424,295,346.35||398,918,766.08||
|Associates:|||||
|Total carrying amounts of investment|16,758,715,038.19||14,086,475,367.61||
|Aggregate of following items calculated based on|||||
|the proportion of ownership interest|||||
|- Net profit|912,589,301.49||1,317,985,250.72||
|- Other comprehensive income|(31,643,724.68)||77,536,453.90||
|- Total comprehensive income|880,945,576.81||1,395,521,704.62||

 (4) As at 31 December 2018, the long-term equity investments of the Group were not subject to restriction on disposal or remittance of return on investments.
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Group's major financial instruments include cash and bank balances, notes receivable, account receivables, interest receivable, other receivables, available-for-sale financial assets, account payables, interest payable, dividends payable, other payables, other current liabilities, bonds payable and long-term payables. Details of these financial instruments are disclosed in Notes (V). The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure the risks are monitored at a certain level.
The Group adopts sensitivity analysis techniques to analyze how the entity's profit or loss and for the period and shareholders' equity would have been affected by changes in the relevant risk variables that were reasonably possible. As it is unlikely that risk variables will change in an isolated manner, and the interdependence between risk variables will have significant effect on the amount ultimately influenced by the changes in a single risk variable, the following items are based on the assumption that each risk variable has changes on a stand-alone basis.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1．Risk management objectives and policies
The Group's risk management objectives are to achieve proper balance between risks and yield, minimize the adverse impacts of risks on the Group's operation performance, and maximize the benefits of the shareholders and other equity investors. Based on these risk management objectives, the Group's basic risk management strategy is to identify and analyze the industry's exposure to various risks, establish appropriate bottom line for risk tolerance, implement risk management, and monitors these exposures to ensure the risks are monitored at a certain level. 1.1 Market risk
1.1.1 Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The Group's exposure to the currency risk is primarily associated with FCFA and HKD. Several of the Group's subsidiaries have purchases and sales denominated in HKD while the Group's other principal activities are denominated and settled in RMB. As at 31 December 2018, the balance of the Group's assets and liabilities are both denominated in functional currency, except that balance of assets set out below is in HKD and USD. Currency risk arising from the foreign currency balance of assets and liabilities may have impact on the Group's performance.
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening|
|||||balance(restated)|
||Cash and bank balances|2,134,538,905.15|900,731,401.82||
||Notes and accounts receivable|159,141,161.37|24,592,272.50||
||Other receivables|574,646,768.14|3,446,717,477.66||
||Short-term borrowings|1,825,358,000.00|-||
||Notes and accounts payable|45,071,940.89|6,767,235.27||
||Other payables|512,625,788.26|53,024,698.55||
||Non-current liabilities due within one year|220,116,765.00|-||
||Long-term borrowings|1,926,978,130.00|-||
||Bonds payable|21,384,578,670.28|2,500,000,000.00||
||Long-term payables|423,754,200.00|423,754,200.00||

 The Group closely monitors the effects of changes in the foreign exchange rates on the Group's currency risk exposures. According to the current risk exposure and judgment of the exchange rate movements, management considers the probable heavy loss resulted from foreign exchange rate fluctuation to be fairly low.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1．Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.1 Currency risk - continued
Sensitivity analysis on currency risk
The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and hedges of a net investment in a foreign operation are highly effective. On the basis of the above assumption, where all other variables are held constant, the reasonably possible changes in the foreign exchange rate may have the following pre-tax effect on the profit or loss for the period or equity:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item||Changes in exchange rate||Closing balance||||Opening balance (restated)|||
||||Effect on profits|||Effect on shareholders'|Effect on profits|||Effect on shareholders'|
|||||||equity||||equity|
||All foreign|5% increase against RMB|(11,394,591.45)||(11,394,591.45)||23,982,328.89||23,982,328.89||
||currencies||||||||||
||All foreign|5% decrease against RMB|11,394,591.45||11,394,591.45||(23,982,328.89)||(23,982,328.89)||
||currencies||||||||||
||All foreign|5% increase against USD|17,324.20||17,324.20||322,074.56||322,074.56||
||currencies||||||||||
||All foreign|5% decrease against USD|(17,324.20)||(17,324.20)||(322,074.56)||(322,074.56)||
||currencies||||||||||
||All foreign|5% increase against HKD|(1,098,658,981.68)||(1,098,658,981.68)||(67,627,776.68)||(67,627,776.68)||
||currencies||||||||||
||All foreign|5% decrease against HKD|1,098,658,981.68||1,098,658,981.68||67,627,776.68||67,627,776.68||
||currencies||||||||||
||All foreign|5% increase against FCFA|(63,413,556.92)||(63,413,556.92)||1,410,777.82||1,410,777.82||
||currencies||||||||||
||All foreign|5% decrease against FCFA|63,413,556.92||63,413,556.92||(1,410,777.82)||(1,410,777.82)||
||currencies||||||||||

1.1.2 Interest rate risk - changes in cash flows
Risk derived from changes in cash flows of financial instruments is mainly related to bank loans with floating interest rate. (See Notes (V) 20 and Notes (V) 29). This Group takes the measure of maintaining the floating interest rate of the bank loans, as a way to reduce the interest rate risk arising from changes in fair value.
Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
• Fluctuations of market interest rate can affect the interest income or expense of a financial instrument with floating interest rate.
• For a financial instrument at fair value with fixed interest rate, the fluctuations of market interest
rate can only affect its interest income or expense.
• For a derivative financial instrument recognized as hedging instrument, the fluctuations of market
interest rate affects its fair value and interest rate hedging estimation are effective and efficient.
• Market interest rate at the balance sheet date is adopted to calculate fair value changes of derivative
financial instruments and other financial assets and liabilities under discounted cash flow method.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1．Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.2 Interest rate risk - changes in cash flows - continued
Given that other variables unchanged on the basis of above assumptions, the pre-tax effect on the profit or loss for the current period from possible and reasonable changes of interest rate are as follows:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item||Changes ininterest rate||Closing balance||||Opening balance (restated)|||
||||Effect on profits|||Effect on shareholders'|Effect on profits|||Effect on|
||Item|||||equity||||shareholders' equity|
||Short-term & Long-term|1% increase|(119,061,442.29 )||(119,061,442.29 )||(102,505,164.91)||(102,505,164.91)||
||borrowings||||||||||
||Short-term & Long-term|1% decrease|119,061,442.29||119,061,442.29||102,505,164.91||102,505,164.91||
||borrowings||||||||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.3 Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group's operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilization of bank loans and ensures compliance with loans covenants.
The following is the maturity analysis for financial assets and financial liabilities held by the Group which is based on undiscounted remaining contractual obligations:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Carrying amount|Total amount|Within 1 year|1-5 years|More than 5 years|
|The non-derivative financial liabilities||||||
|Short-term borrowings|3,425,291,312.62|3,478,169,207.83|3,478,169,207.83|-|-|
|Notes and accounts payable|429,120,690.97|429,120,690.97|429,120,690.97|-|-|
|Other payables|2,245,670,528.89|2,245,670,528.89|2,245,670,528.89|-|-|
|Non-current liabilities due|2,243,283,834.91|2,660,121,708.86|2,660,121,708.86|-|-|
|within one year||||||
|Other current liabilities|602,659,721.80|608,495,040.88|608,495,040.88|-|-|
|Long-term borrowings|6,971,479,842.18|7,796,930,369.38|-|6,538,562,313.75|1,258,368,055.63|
|Bonds payable|22,097,467,096.40|27,296,882,971.12|605,139,169.55|18,009,414,364.38|8,682,329,437.19|
|Long-term payables|431,988,064.47|433,111,346.10|-|42,453,199.58|390,658,146.52|
|The derivative financial liabilities||||||
|Other non-current liabilities|579,195,304.56|579,195,304.56|-|579,195,304.56|-|

 (IX) FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Unit: RMB
||||||
|-|-|-|-|-|
||Closing Balance||||
|Item|||||
||Level 1|Level 2|Level 3|Total|
|Measurements at fair value|||||
|continuously|||||
|Other investments in equity instruments|9,800,000.00|-|238,048,314.30|247,848,314.30|
|Other non-current financial assets|1,551,815,520.48|-|536,056,561.46|2,087,872,081.94|
|Total assets measured at fair value|1,561,615,520.48|-|774,104,875.76|2,335,720,396.24|
|continuously|||||
|Other non-current liabilities|-||3,839,742,307.01|3,839,742,307.01|
|Total liabilities measured at fair value|-||3,839,742,307.01|3,839,742,307.01|
|continuously|||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(IX) FAIR VALUE - continued
2. Basis for determining the market price measured at fair value at level I continuously The market price of assets and liabilities measured at fair value at level I continuously is determined by the Shanghai stock exchange and the Stock Exchange of Hong Kong Ltd. closing price of equity instruments at 29 December 2018.
3. Level 3 continuously fair value measure instruments, using valuation method and qualitative and quantitative information on important parameters.
Unit: RMB
||||||
|-|-|-|-|-|
||Closing Balance Fair|Opening Balance Fair|||
|Item|||Valuation method|Input|
||Value|Value|||
|Other investments in|238,048,314.30|223,633,968.79|Net assets method|Net asset value|
|equity instruments|||||
|Other non-current|2,000,000.00|-|Discounted cashflow method|Discount rate|
|financial assets|||||
|Other non-current|689,901.07|644,549.67|Net assets method|Net asset value|
|financial assets|||||
|Other non-current|533,366,660.39|602,632,149.19|Comparative methodof listed company|Stock Price|
|financial assets|||||
|Other non-current|3,260,547,002.45|-|Discounted cashflow method|Discount rate|
|liabilities|||||
||579,195,304.56|-|Option pricingmethod|Executive price,expected volatility,etc.|
|Other non-current|||||
|liabilities|||||

 The fair value of other investments in equity instruments that are measured at fair value through profit or loss or other comprehensive income is determined using valuation methods such as discounted cash flow method, net assets method, and comparative method of listed company. At the time of valuation, the Group needs to estimate future cash flows, credit risk, market volatility and correlation, select an appropriate discount rate and consider the discount premium adjustment. 4. Information of financial assets and financial liabilities that are not measured at fair value
Financial assets and financial liabilities that are not measured at fair value include notes and accounts receivable, other receivables, Short-term borrowings, notes and accounts payable, other receivables, long-term borrowings, bonds payable, long-term payables.
The management considers that the carrying amount of financial assets and liabilities measured at amortized cost is approximately equal to the fair value of financial assets and liabilities. The fair value of note payable which has active market price should be determined by the active market price. The fair value of long-term borrowings, long-term payable and note payable without active market price, should be determined by the net present value of cash flow stated in contract
and the discount rate which has the same rank of credit.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
||||||||||
|-|-|-|-|-|-|-|-|-|
|Name of the parent|||||||||
||||||||Proportion of the entity's|Proportion of the entity's|
||Related party|Type of the|Place of|Legal|Nature of||ownership interests held by|voting power held by the|
||relationship|entity|incorporation|representative|business|Issued share capital|the parent (%)|parent (%)|
|Broadford GlobalLimited|Parent company|Private limitedcompany (sharelimited)|Hong Kong|Deng Weidong|Investmentholding|HKD21,120,986,262|3.08%-|87.81 (Note)|

Note: Broadford directly obtained3.08% equity of the Company,20.68% equity via its subsidiary China Merchants Port Development (Shenzhen) Co., Ltd., and obtained another64.05% ( details in Notes (VI) 6) equity by its subsidiary CMID, as at 28 December 2018, CMID entrusts its rights on the board of directors to through agreement arrangements. Therefore, Broadford totally held the Company's87.81% of the voting shares, becoming the parent company of the Company.
The ultimate actual controller of the Company is CMG.
2． Subsidiaries of the Company
The general background and other related information of subsidiaries are set out in Notes (VII) 1. 3. Associates and joint ventures of the Company
The general background and other related information of the significant associates and joint ventures are set out in Notes (VII) 2.
Other joint ventures or joint ventures that occurred related party transactions and formed balances with the Group this year are as follows:
||||
|-|-|-|
|Name of other related parties||Relationships between other related|
|||parties and the Company|
|Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret Anonim Şirketi|Joint venture||
|Port of Newcastle and its subsidiaries|Joint venture||
|Ningbo Daxie Merchants International Wharf Co., Ltd.|Joint venture||
|Qingdao Qianwan United Container Terminal Co., Ltd.|Joint venture||
|Qingdao Qianwan West Port United Wharf Co., Ltd.|Joint venture||
|Qingdao Qianwan New United Container Terminal Co., Ltd.|Joint venture||
|Zhanjiang Port (Group) Co., Ltd.|Joint venture||
|China Overseas Harbour Affaris (Laizhou) Co., Ltd.|Joint venture||
|Great Horn Development Company FZCO|Associate Company||
|International Djibouti Industrial Parks Operation FZCO|Associate Company||
|Port de Djibouti S.A.|Associate Company||
|Terminal Link SAS|Associate Company||
|Nanshan Group and its subsidiaries|Associate Company||
|Shanghai International Port (Group) Co., Ltd.|Associate Company||
|Shenzhen Globex e-Service Inc|Associate Company||
|Shenzhen Baohong Trade Service Co., Ltd.|Associate Company||
|Tianjin Haitian Bonded Logistics Co., Ltd.|Associate Company||
|Modern Terminals Limited|Associate Company||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company
Unit: RMB
|||
|-|-|
||Relationships between other related|
|Name of other related parties||
||parties and the Company|
|Zhangzhou COSCO Shipping Agency Co., Ltd|Associate Company|
|COFCO Merchants Bureau (Shenzhen) Grain Electronic Trading Center Co., Ltd.|Associate Company|
|CHU KONG RIVER TRADE TERMINAL CO. LTD.|Associate Company|
|Qingdao Port International Co., Ltd|minority shareholders of subsidiaries|
|Hong Kong International Enterprises Limited|minority shareholders of subsidiaries|
|YiHai Kerry Investment Company Limited|minority shareholders of subsidiaries|
|CMHK|Controlled by the same ultimate actual controller|
|Sinotrans(NZ)Limited|Controlled by the same ultimate actual controller|
|Sinoway Shipping Limited|Controlled by the same ultimate actual controller|
|Guangzhou International Ocean Shipping Agency Co., Ltd.|Controlled by the same ultimate actual controller|
|Hoi Tung (Shanghai) Co., Ltd.|Controlled by the same ultimate actual controller|
|EuroAsia Dockyard Enterprise and development Ltd|Controlled by the same ultimate actual controller|
|Qingdao Bonded Logistics Park Sino-foreign Transport Warehousing Logistics Co., Ltd.|Controlled by the same ultimate actual controller|
|Qingdao Sino-foreign Transport Supply Chain Management Co., Ltd|Controlled by the same ultimate actual controller|
|Shenzhen Science and Technology University Phase II Real Estate Management Co., Ltd|Controlled by the same ultimate actual controller|
|Shenzhen Nanyou (Holdings) Ltd|Controlled by the same ultimate actual controller|
|Shenzhen Waidai Warehousing Co., Ltd.|Controlled by the same ultimate actual controller|
|China Merchants Landmark (Shenzhen) Co ., Ltd|Controlled by the same ultimate actual controller|
|China Merchants Ocean Shipping Agency Shenzhen|Controlled by the same ultimate actual controller|
|Shenzhen Merchants Qianhai Industrial Development Co., Ltd.|Controlled by the same ultimate actual controller|
|CSC RoRo Logistics Co., Ltd|Controlled by the same ultimate actual controller|
|China Merchants (Shenzhen) Power Supply., Ltd|Controlled by the same ultimate actual controller|
|Shenzhen Merchants Construction Co., Ltd.|Controlled by the same ultimate actual controller|
|Shenzhen Merchants Commercial Property Investment Co., Ltd|Controlled by the same ultimate actual controller|
|Shenzhen Merchants Culture Industry Co., Ltd.|Controlled by the same ultimate actual controller|
|Shenzhen Investment Promotion Real Estate Management Co., Ltd..|Controlled by the same ultimate actual controller|
|China Ocean Shipping Tally Shenzhen CO., Ltd|Controlled by the same ultimate actual controller|
|China Marine Shipping Agency,Shenzhen Company Limited|Controlled by the same ultimate actual controller|
|Yiu Lian Dockyards (Shekou) Limited|Controlled by the same ultimate actual controller|
|Yiu Lian Dockyards Limited|Controlled by the same ultimate actual controller|
|Cm Houlder Insurance Brokers Limited|Controlled by the same ultimate actual controller|
|Investment Promotion Bureau Zhangzhou Development Zone Power Supply Co., Ltd..|Controlled by the same ultimate actual controller|
|China Merchants Godown, Wharf Transportation Company Limited|Controlled by the same ultimate actual controller|
|Huanan Refrigeration Ice Making(Shenzhen)Co., Ltd..|Controlled by the same ultimate actual controller|
|China Merchants Group Finance Company Limited|Controlled by the same ultimate actual controller|
|China Merchants Steam Navigation Company Limited|Controlled by the same ultimate actual controller|
|China Merchants Shekou Industrial Zone Holdings Co., Ltd.|Controlled by the same ultimate actual controller|
|China Merchants Bureau Logistics Group Fujian Co., Ltd.|Controlled by the same ultimate actual controller|
|China Merchants Bureau Logistics Group Qingdao Co., Ltd|Controlled by the same ultimate actual controller|
|China Merchants Property Management Co., Ltd..|Controlled by the same ultimate actual controller|
|China Merchants Bureau Zhangzhou Development Zone Co., Ltd.|Controlled by the same ultimate actual controller|
|China Merchants Bureau Zhongbai Commercial Logistics Co., Ltd.|Controlled by the same ultimate actual controller|
|China Merchants Securities Co., Ltd.|Controlled by the same ultimate actual controller|
|China Communications Import & Export Co., Ltd|Controlled by the same ultimate actual controller|
|China Ocean Shipping Agency Shenzhen|Controlled by the same ultimate actual controller|
|Sinotrans Co., Ltd..|Controlled by the same ultimate actual controller|
|China Outbound Air Transport Co., Ltd.|Controlled by the same ultimate actual controller|
|Sinotrans Container Lines (Hong Kong) Company Limited|Controlled by the same ultimate actual controller|
|Sinotrans Container Lines Co., Ltd..|Controlled by the same ultimate actual controller|
|China Merchants Bureau Food (Shenzhen) Co., Ltd|Controlled by the same ultimate actual controller|
|China Merchants Union (BVI) Limited|Controlled by the same ultimate actual controller|
|Khor Ambado FZCo|Controlled by the same ultimate actual controller|
|China Merchants Bank Company Limited|Controlled by the same ultimate actual controller|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transaction
(1) Provision and receipt of services
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and|||
||Content of related|decision-making||Opening balance|
|Related party|||Closing balance||
||party transaction|procedures of related party||(restated)|
|||transactions|||
|Receipt of services：|||||
|China Merchants Securities Co., Ltd|Service expenditure|Negotiation|22,641,509.43|-|
|Qingdao Qianwan West Port United Terminal Co.,|Service expenditure|Negotiation|15,358,571.88|16,832,662.07|
|Ltd|||||
|Shenzhen China Merchants Shangzhi Investment|Service expenditure|Negotiation|10,707,148.03|15,012,063.63|
|Co., Ltd|||||
|Yiu Lian Dockyards Limited|Service expenditure|Negotiation|10,019,922.18|9,182,821.83|
|China Merchants Bureau Zhangzhou Development|Service expenditure|Negotiation|5,681,278.30|5,395,042.75|
|Zone Co., Ltd.|||||
|China Merchants Bureau Logistics Group Qingdao|Service expenditure|Negotiation|3,751,785.75|2,015,655.27|
|Co., Ltd|||||
|China Ocean Shipping Agency Shenzhen|Service expenditure|Negotiation|3,539,104.80|4,072,313.14|
|Hoi Tung (Shanghai) Co., Ltd.|Service expenditure|Negotiation|3,461,147.79|1,432,378.81|
|China Merchants (Shenzhen) Power Supply Co.,|Service expenditure|Negotiation|2,908,847.34|-|
|Ltd.|||||
|China Outbound Air Transport Co., Ltd.|Service expenditure|Negotiation|2,199,064.60|-|
|Cm Houlder Insurance Brokers Limited|Service expenditure|Negotiation|2,102,764.12|1,903,741.43|
|China Merchants Property Management Co., Ltd.|Service expenditure|Negotiation|1,764,315.36|2,015,655.27|
|China Ocean Shipping Tally Shenzhen CO., Ltd|Service expenditure|Negotiation|1,240,537.34|1,126,870.35|
|Nanshan Group and Its Subsidiary|Service expenditure|Negotiation|1,080,269.25|2,288,324.92|
|Sinoway Shipping Limited|Service expenditure|Negotiation|760,244.19|7,861,796.11|
|Shenzhen Merchants Culture Industry Co., Ltd.|Service expenditure|Negotiation|461,390.46|1,824,228.26|
|Other related parties|Service expenditure|Negotiation|3,695,383.53|3,818,846.42|
|China Merchants Group Finance Company Limited|Interest expense|Negotiation|51,574,070.78|43,521,750.00|
|Port de Djibouti S.A.|Interest expense|Negotiation|24,719,148.38|2,364,694.82|
|China Merchants Steam Navigation Company|Interest expense|Negotiation|3,961,479.45|8,246,884.93|
|Limited|||||
|China Merchant Bank Co., Ltd|Interest expense|Negotiation|104,400.00|5,762,005.73|
|China Merchants Group|Interest expense|Negotiation|-|4,318,767.12|
|Total|||171,732,382.96|138,996,502.86|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transaction - continued
(1) Provision and receipt of services - continued
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and|||
||Content of related|decision-making||Opening balance|
|Related party|||Closing balance||
||party transaction|procedures of related party||(restated)|
|||transactions|||
|Provision of service：|||||
|Qingdao Qianwan United Container Terminal Co., Ltd|Service revenue|Negotiation|59,871,312.19|52,831,836.74|
|China Ocean Shipping Agency Shenzhen|Service revenue|Negotiation|26,678,580.24|25,783,328.94|
|Khor Ambado FZCo|Service revenue|Negotiation|22,976,552.15|-|
|Qingdao Qianwan West Port United Terminal Co., Ltd.|Service revenue|Negotiation|14,667,866.59|15,378,330.78|
|Globex e-Services Co., Ltd.|Service revenue|Negotiation|13,954,183.68|8,174,128.49|
|China Marine Shipping Agency,Shenzhen Company Limited|Service revenue|Negotiation|11,339,084.02|8,393,115.04|
|Sinotrans Container Lines Co., Ltd.|Service revenue|Negotiation|10,699,341.99|3,489,366.88|
|Huanan Refrigeration Ice Making (Shenzhen) Co., Ltd.|Service revenue|Negotiation|6,422,615.01|6,226,134.87|
|Zhangzhou COSCO Shipping Agency Co., Ltd|Service revenue|Negotiation|5,804,690.70|5,417,274.27|
|Zhanjiang Port (Group) Co., Ltd|Service revenue|Negotiation|5,568,651.21|1,356,499.96|
|Qingdao Bonded Logistics Park Sino-foreign Transport|Service revenue|Negotiation|5,085,762.32|3,154,879.91|
|Warehousing Logistics Co., Ltd.|||||
|Port de Djibouti S.A.|Service revenue|Negotiation|4,640,763.43|5,686,674.06|
|Great Horn Development Company FZCO|Service revenue|Negotiation|3,985,900.36|9,947,871.61|
|Ningbo Daxie Merchants International Wharf Co., Ltd|Service revenue|Negotiation|3,929,015.11|4,537,052.85|
|Qingdao Qianwan New United Container Terminal Co., Ltd.|Service revenue|Negotiation|3,411,057.43|3,179,265.03|
|Yiu Lian Dockyards (Shekou) Limited|Service revenue|Negotiation|3,319,608.63|1,274,969.05|
|International Djibouti Industrial Parks Operation|Service revenue|Negotiation|3,054,612.36|5,725,098.14|
|FZCO|||||
|China Merchants Ocean Shipping Agency Shenzhen|Service revenue|Negotiation|3,013,980.25|4,402,744.18|
|China Merchants Shekou Industrial Zone Holdings Co., Ltd|Service revenue|Negotiation|2,496,490.06|3,140,643.98|
|China Merchants Bureau Zhongbai Commercial Logistics Co., Ltd.|Service revenue|Negotiation|2,484,304.00|1,764,574.00|
|Sinotrans Container Lines (Hong Kong) Company Limited|Service revenue|Negotiation|2,182,888.92|1,809,539.25|
|China Outbound Air Transport Co., Ltd.|Service revenue|Negotiation|1,993,291.26|-|
|CMHK|Service revenue|Negotiation|1,600,000.00|20,274.29|
|Shanghai International Port (Group) Co., Ltd.|Service revenue|Negotiation|1,588,035.85|1,331,677.32|
|Laizhou Laiyin Port Business Co., Ltd.|Service revenue|Negotiation|1,574,244.92|1,776,636.76|
|Terminal Link SAS|Service revenue|Negotiation|1,378,437.57|1,315,926.11|
|Guangzhou International Ocean Shipping Agency Co., Ltd|Service revenue|Negotiation|1,312,017.95|1,049,904.69|
|Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret Anonim|Service revenue|Negotiation|1,119,436.15|1,693,185.98|
|Şirketi|||||
|Qingdao Qianwan West Port United Wharf Co., Ltd.|Service revenue|Negotiation|1,071,100.78|-|
|Shenzhen Waidai Warehousing Co., Ltd.|Service revenue|Negotiation|690,687.40|2,581,013.80|
|China Merchants Group|Service revenue|Negotiation|407,655.62|1,173,935.66|
|COFCO Merchants Bureau (Shenzhen) Grain Electronic Trading|Service revenue|Negotiation|17,134.90|1,529,032.53|
|Center Co., Ltd.|||||
|Shenzhen Baohong Trade Service Co., Ltd|Service revenue|Negotiation|-|11,018,134.42|
|Sinotrans(NZ)Limited|Service revenue|Negotiation|-|8,994,813.95|
|Other related parties|Service revenue|Negotiation|7,990,585.72|15,969,731.66|
|Khor Ambado FZCo|Interest income|Negotiation|51,599,386.03|7,097,464.46|
|Port of Newcastle and its Subsidiaries|Interest income|Negotiation|34,416,578.56|-|
|China Merchant Bank Co., Ltd|Interest income|Negotiation|34,629,531.08|31,155,058.39|
|China Merchants Group Finance Company Limited|Interest income|Negotiation|14,042,476.82|3,299,729.55|
|Morden Terminals Limited|Interest income|Negotiation|1,193,424.67|736,667.48|
|Other related parties|Interest income|Negotiation|1,443,994.71|7,181,287.74|
|Total|||373,655,280.64|269,597,802.82|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transaction - continued
(2) Leases with related parties
The Group as thelessor：
Unit：RMB
||||||
|-|-|-|-|-|
|||Pricing and|||
||||Lease income|Lease income|
|||decision-making|||
||||recognized in|recognized in the|
|Name of lessee|Type of leased assets|procedures of|||
||||the current|previous year|
|||related party|||
||||year|(restated)|
|||transactions|||
|Nanshan Group and its Subsidiaries|Buildings|Negotiation|3,506,398.00|-|
|China Merchants Bureau Food|Buildings|Negotiation|3,393,457.47|143,124.29|
|(Shenzhen) Co., Ltd|||||
|China Communications Import and|Buildings|Negotiation|2,699,223.60|1,965,231.30|
|Export Co., Ltd.|||||
|Shenzhen Nanyou (Holdings) Ltd|Buildings|Negotiation|2,400,571.43|2,400,571.43|
|Yiu Lian Dockyards (Shekou) Limited|Buildings|Negotiation|2,025,218.14|2,439,540.40|
||Buildings andLand use right|Negotiation|1,573,182.07|3,355,566.56|
|Other related parties|||||
|Total|||15,598,050.71|10,304,033.98|

 The Group as the lessee:
Unit：RMB
||||||
|-|-|-|-|-|
|||Pricing and||Lease payment|
||||Lease payment||
|||decision-making||recognized in the|
|Name of lessor|Type of leased assets||recognized in||
|||procedures of related||previous year|
||||the current year||
|||party transactions||(restated)|
|Nanshan Group and its Subsidiaries|Buildings|Negotiation|70,044,701.50|71,986,357.12|
|China Merchants Bureau Shekou|Buildings|Negotiation|40,961,038.60|41,973,260.20|
|Industrial Zone Holding Co., Ltd.|||||
|China Merchants Property Management|Buildings|Negotiation|13,814,358.72|20,284,937.94|
|Co., Ltd.|||||
|Euro Asia Dockyard Enterprise and|Buildings andLand use right|Negotiation|13,057,843.61|12,938,008.64|
|development Ltd|||||
|Shenzhen China Merchants Shangzhi|Buildings|Negotiation|8,342,789.84|9,905,500.99|
|Investment Co., Ltd|||||
|Shenzhen Nanyou (Holdings) Ltd|Buildings|Negotiation|3,558,233.30|1,978,376.12|
|Shenzhen Science and Technology|Buildings|Negotiation|3,541,404.00|3,305,310.00|
|University Phase II Real Estate|||||
|Management Co., Ltd.|||||
|China Merchants Property Management|Buildings|Negotiation|3,250,687.11|-|
|Co., Ltd|||||
|China Merchants Godown, Wharf &|Other equipment|Negotiation|1,395,479.12|1,433,677.44|
|Transportation Company Limited|||||
|China Merchants Landmark (Shenzhen)|Buildings|Negotiation|1,147,441.22|1,038,371.81|
|Co., Ltd|||||
|China Merchants Bureau Logistics|Buildings|Negotiation|731,132.08|4,386,792.48|
|Group Fujian Co., Ltd|||||
||Buildings,Land use right andothers|Negotiation|3,142,604.46|2,100,185.74|
|Other related parties|||||
|Total|||162,987,713.56|171,330,778.48|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transaction - continued
(3) The Group as the guarantor
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||Guarantee Starting|Guarantee maturity|The guarantee has been|
|Warrantee|Credit Line|Guarantee amount||||
||||Date|date|completed|
|2018 year||||||
|CMA CGM S.A.(Note)|82,195,789.24|82,195,789.24|June 2013|2033|No|
|CMA CGM S.A.(Note)|24,982,114.97|12,241,236.33|June 2013|2033|No|
|Port de Djibouti S.A.|343,160,000.00|24,192,780.00|14 June 2016|14 June 2019|No|
|Total|450,337,904.21|118,629,805.57||||
|2017 year||||||
|CMA CGM S.A.|81,962,196.99|81,962,196.99|June 2013|2033|No|
|CMA CGM S.A.|27,941,438.37|27,941,438.37|June 2013|2033|No|
|Port de Djibouti S.A.|76,776,850.00|53,743,795.00|14 June 2016|14 June 2019|No|
|Total|186,680,485.36|163,647,430.36||||

Note: CMA CGM S.A. is the other shareholder of Terminal Link SAS which is our group's associate. Our group has made a commitment for CMA CGM S.A. according to the guarantee made by CMA CGM S.A to Terminal Link SAS's bank loan and other debt. The commitment is limited to the49% interest that our group has in Terminal Link SAS and the commitment amount is RMB 94,437,025.57. If any other guarantee fees occurred, our group would make the an compensation.
(4) Relevant party funds borrowing
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Related parties||Loan Amount||Starting date||Due date||Instructions|
|2018 Year||||||||||
||Borrowings|||||||||
||China Merchants Group|270,000,000.00||23 April 2018||22 April 2019||Fixed Annual InterestRate4.35%||
||Finance Company Limited|||||||||
||China Merchants Group|220,000,000.00||17 May 2018||16 May 2019||Fixed Annual InterestRate4.35%||
||Finance Company Limited|||||||||
||China Merchants Group|80,000,000.00||11 December 2018||10 December 2028||Fixed Annual InterestRate4.802%||
||Finance Company Limited|||||||||
||China Merchants Group|60,000,000.00||19 June 2018||20 June 2019||Fixed Annual InterestRate4.35%||
||Finance Company Limited|||||||||
||China Merchants Group|40,000,000.00||20 May 2018||21 May 2019||Fixed Annual InterestRate4.35%||
||Finance Company Limited|||||||||
||China Merchants Group|30,000,000.00||7 December 2018||6 December 2019||Fixed Annual InterestRate4.35%||
||Finance Company Limited|||||||||
||China Merchants Group|30,000,000.00||20 December 2018||19 December 2021||Fixed Annual InterestRate4.275%||
||Finance Company Limited|||||||||
||China Merchants Group|25,000,000.00||6 December 2018||5 October 2021||Fixed Annual InterestRate4.75%||
||Finance Company Limited|||||||||
||China Merchants Group|20,000,000.00||17 December 2018||16 December 2019||Fixed Annual InterestRate4.35%||
||Finance Company Limited|||||||||
||Total|775,000,000.00||||||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transaction - continued
(4) Relevant Party Funds Borrowing - continued
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Related Parties||Amount||From|To|Remarks|
|Lending money to||||||||
||Port of Newcastle and subsidiaries|784,057,712.75||14 June 2018||29 May 2020|Fixed rate at 8.00%|
||Year 2017|||||||
||Borrowing money from|||||||
||CMFC|1,000,000,000.00||24 March 2017||23 March 2018|Fixed rate at 3.83%|
||CMFC|300,000,000.00||21 April 2017||20 April 2018|Fixed rate at 4.35%|
||Port de Djibouti S.A.|230,331,618.08||12 November 2017||11 June 2019|Floating rate|
||CMFC|200,000,000.00||29 September 2017||28 September 2018|Fixed rate at 4.35%|
|CMFC|CMFC|150,000,000.00||16 November 2017||15 November 2018|Fixed rate at 4.35%|
|CMFC||100,000,000.00||14 September 2017||13 September 2018|Fixed rate at 4.35%|
|CMFC||80,000,000.00||18 December 2017||18 December 2018|Fixed rate at 4.35%|
|CMFC||30,000,000.00||18 December 2017||18 December 2018|Fixed rate at 4.35%|
|CMFC||30,000,000.00||22 June 2017||21 June 2018|Fixed rate at 4.35%|
||Total|2,120,331,618.08||||||
||Lending money to|||||||
||Khor Ambado FZCo|980,134,545.00||10 November 2017||9 November 2018|Floating rate|

 (5) Compensation for key management personnel
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance|(restated)|
|Compensation for key management personnel|19,243,010.16|19,437,529.56|

 6. Amounts due from/to related parties
(1) Amounts due from related parties
Unit: RMB
|||||
|-|-|-|-|
||||Opening balance|
|Item|Related parties|Closing balance|(restated)|
|Cash and bank|CMB|1,274,536,476.91|928,934,746.51|
|balances|CMFC|494,131,151.34|605,402,768.43|
||Nanshan Group and Its Subsidiary|-|1,192,728.52|
||Total|1,768,667,628.25|1,535,530,243.46|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(1) Amounts due from related parties - continued
Unit: RMB
|||||
|-|-|-|-|
||||Opening balance|
|Item|Related parties|Closing balance|(restated)|
|Notes and accounts|Shenzhen Globex e-service Inc.|7,222,351.10|3,508,011.61|
|receivable|Port de Djibouti S.A.|6,387,923.40|1,423,786.05|
||Qingdao Qianwan United Container Terminal Co., Ltd.|5,112,134.91|4,929,217.77|
||Ocean Shipping Agency|4,678,761.75|4,983,931.70|
||China Overseas Harbor Affaris(LAIZHOU) Co., Ltd|1,490,941.09|-|
||Sinotrans Container Lines Co., Ltd.|1,156,769.47|817,413.49|
||Great Horn Development Company FZCO|1,486,615.75|2,315,470.86|
||China Marine Shipping Agency,Shenzhen Company Limited|1,115,972.50|1,350,887.20|
||China Merchants Shekou Industrial Zone Holdings Co., Ltd.|1,029,573.58|115,180.72|
||Qingdao Qianwan West Port United Wharf Co., Ltd.|74,485.74|4,371,957.66|
||Nanshan Group and its subsidiaries|-|279,645.50|
||Other related parties|4,564,416.46|6,137,476.38|
||Total|34,319,945.75|30,232,978.94|
|Other receivables|Nanshan Group and its subsidiaries|175,976,941.31|194,710,379.10|
||CHU KONG RIVER TRADE TERMINAL CO., LTD.|59,975,890.00|57,217,355.00|
||Shanghai International Port (Group) Co., Ltd|50,118,027.14|-|
||Tianjin Haitian Bonded Logistics Co., Ltd.|34,300,000.00|34,300,000.00|
||Qingdao Qianwan United Container Terminal Co., Ltd.|25,000,000.00|-|
||Port de Djibouti S.A|24,411,770.72|23,197,515.92|
||Port of Newcastle and its subsidiaries|15,858,848.40|-|
||Zhanjiang Port (Group) Co., Ltd.|9,253,682.23|-|
||Khor Ambado FZCo|7,332,144.82|6,848,478.86|
||CSC RoRo Logistics Co., Ltd.|2,899,163.95|-|
||CMFC|2,565,333.33|-|
||Euro Asia Dockyard Enterprise and development Ltd.|1,481,149.51|1,413,025.42|
||Shenzhen Merchants Commercial Property Investment Co.,Ltd.|1,051,801.58|1,206,519.60|
||Terminal Link SAS|346,490.00|1,210,417.79|
||Other related parties|3,293,911.53|4,131,562.24|
||Total|413,865,154.52|324,235,253.93|
|Other current assets|Khor Ambado FZCo|1,029,478,047.00|980,134,545.00|
||Modern Terminals Limited|-|120,000,000.00|
||Total|1,029,478,047.00|1,100,134,545.00|
|Long-term|Port of Newcastle and its subsidiaries|784,057,712.75|-|
|receivables|Terminal Link SAS|9,782,367.44|9,669,034.35|
||Total|793,840,080.19|9,669,034.35|
|Other non-current|China Merchants Shekou Industrial Zone Holdings Co., Ltd.|43,472,687.00|43,472,687.00|
|assets||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
(2) Amounts due to related parties
Unit: RMB
|||||
|-|-|-|-|
||||Opening balance|
|Item|Related parties|Closing balance|(restated)|
|Short-term borrowings|CMFC|640,000,000.00|1,890,000,000.00|
|Notes and accounts payable|Nanshan Group and Its Subsidiary|11,631,575.13|16,968,830.09|
||Qingdao Qianwan United Container TerminalCo., Ltd.|5,196,134.76|4,069,171.94|
||Euro Asia Dockyard Enterprise anddevelopment Ltd.|3,698,897.16|3,265,979.26|
||Yiu Lian Dockyards Limited|2,204,328.63|1,619,449.67|
||Other related parties|3,252,253.36|2,521,076.36|
||Total|25,983,189.04|28,444,507.32|
|Contract liabilities|Zhanjiang Port (Group) Co., Ltd.|1,287,452.83||
||Other related parties|803,584.16||
||Total|2,091,036.99||
|Receipts in advance|Other related parties|66,799.01|917,915.58|
|Other payables|China Merchants Zhangzhou|93,258,350.90|93,258,350.90|
||Terminal Link SAS|46,506,416.54|57,593,466.16|
||Yihai Kerry investment Co., Ltd.|37,402,426.09|37,402,426.09|
||Shenzhen Merchants Construction Co., Ltd.|28,379,667.10|36,991,325.43|
||Sinotrans Co., Ltd.|25,949,781.00|25,949,781.00|
||Sinotrans Co., Ltd.|22,641,509.43|-|
||Shenzhen Investment Promotion Real EstateManagement Co., Ltd.|18,294,814.64|12,999,683.93|
||Shenzhen Merchants Commercial PropertyInvestment Co., Ltd.|9,355,392.43|9,786,880.69|
||Port de Djibouti S.A.|2,951,170.40|2,286,980.61|
||Qingdao Port International Co., Ltd.|2,700,000.00|15,336,000.00|
||Modern Terminals Limited|1,286,962.56|409,256.64|
||China Merchants Bureau Food (Shenzhen) Co.,Ltd.|1,254,271.10|-|
||CMFC|1,043,521.17|2,304,775.02|
||China Communications Import & Export Co.,Ltd.|495,944.18|1,246,375.78|
||Hong Kong International Enterprises Limited|-|128,552,676.45|
||Shenzhen Merchants Qianhai IndustrialDevelopment Co., Ltd.|-|1,255,800.00|
||Other related parties|5,840,795.87|5,708,791.51|
||Total|297,361,023.41|431,082,570.21|
|Non-current liabilities within|China Merchants Steam Navigation CompanyLimited|-|100,000,000.00|
|one year||||
|Other current liabilities|Port de Djibouti S.A.|241,927,341.05|230,331,618.08|
|Long-term borrowings|China Merchants Steam Navigation CompanyLimited|-|50,000,000.00|
||CMFC|135,000,000.00|-|
||Total|135,000,000.00|50,000,000.00|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
7. Other related parties transactions
As Notes (V) 9 stated, the Group signed acquisition agreement with CMU and Gold Newcastle, the associated company and wholly-owned subsidiary of CMHK respectively. The agreement stipulates that the Group will purchase from CMU a50% interest in Gold Newcastle and Gold Newcastle's joint venture Port of Newcastle, with a final consideration of 605 million Australian dollars (equivalent to RMB 2,944,265,945.15), including CMU providing the principal to Port of Newcastle. Interest-bearing shareholder loans of 162.5 million Australian dollars (equivalent to RMB 788,823,491.63).
(XI) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
(1) Capital commitments
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance|(restated)|
|Capital commitments that have been entered into but have not been|||
|recognized in the financial statements:|||
|-Commitment to acquisition of long-term assets|3,971,730,917.34|2,635,299,294.22|
|-Commitment to port construction investment|5,490,560.00|6,047,217,548.20|
|-Other|26,115,744.09|50,882,109.61|
|Total|4,003,337,221.43|8,733,398,952.03|

 (2) Operating lease commitments
As of the balance sheet date, the Group had the following commitments in respect of
non-cancellable operating leases:
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance|(restated)|
|Minimum lease payments under non-cancellable operating|1,756,853,448.93|1,851,844,563.15|
|leases:|||
|1st year subsequent to the balance sheet date|125,780,272.12|185,070,168.27|
|2nd year subsequent to the balance sheet date|51,145,934.81|118,949,570.41|
|3rd year subsequent to the balance sheet date|43,017,965.02|43,589,813.97|
|More than 3 years|1,536,909,276.98|1,504,235,010.50|
|Total|1,756,853,448.93|1,851,844,563.15|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
（XI) COMMITMENTS AND CONTINGENCIES– continued
2. Contingencies
Unit: RMB
||||
|-|-|-|
|||Opening balance|
|Item|Closing balance|(restated)|
|Contingent liabilities (Note 1)|323,559,335.68|-|
|Guarantees for associates (Note 2)|118,629,805.57|163,647,430.36|
|Total|442,189,141.25|163,647,430.36|

 Note 1: As at 31 December 2018, the TCP Group had significant contingent liabilities arising from pending legal proceedings in Brazil in respect of disputes with local tax authorities, employees or former employees of TCP Group and other parties, amounting to RMB323,559,335.68 (31 December 2017: nil), which, based on the latest estimates of the management of the Group, is not probable that outflows of resources embodying economic benefits will be required to settle these obligations. Accordingly, no provision for litigation claims in respect of the above cases has been made in the condensed
consolidated interim financial information. A counter indemnity in favor of the Group is executed by the Selling Shareholders pursuant to which the latter indemnify to the Group for the above contingent liabilities for and up to predetermined amounts and specified length of time.
Note 2: As at 31 December 2018, the other shareholder of an associate of which the Group held as to49% of its issued share capital provided corporate guarantees to the full amount for certain loan facilities granted by banks to and other obligations borne by the relevant associate. A counter indemnity in favor of the other shareholder of the associate is executed pursuant to which the Group undertakes to indemnify the other shareholder49% of the liabilities in the aggregate amount of RMB 94,437,025.00 arising from the above loan facilities and other obligations.
In addition to above, the Group also provides guarantees for banking facilities granted to and other obligations borne by associates of the Group. The total amount guaranteed by the Group is RMB 343,160,000.00 and the aggregate amount utilized by the relevant associates amounted to RMB 24,192,780.00 specified in Notes (V) 9.
During the year ended 31 December 2018, the directors assessed the risk of default of the associates in serving the aforesaid loan facilities and other obligations at the end of the reporting period and considered the risk to be insignificant and it is not likely that any guaranteed amount will be claimed.
In addition to above, no material contingencies that should be disclosed by the Group as at 31 December 2018.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XII) EVENTS AFTER THE BALANCE SHEET
1. Profit appropriation
Unit: RMB
|||
|-|-|
|Item|Amount|
|Proposed distribution of profits or dividends (Note)|204,449,011.09|
||Subject to approval by shareholders'general meeting|
|Profits or dividends declared to be distributed||

Note: Please refer to Notes (V) 41.
2. Qianhai land restructuring and Joint venture issues
In order to comprehensively promote the industrial development, institutional innovation and new city construction of Qianhai Shekou Free Trade Zone, the ultimate controlling shareholder of China Merchants Group signed a framework agreement with Shenzhen-Hong Kong Modern Services Commission on June 18, 2016. The agreement was established on the formation of a joint venture to promote the innovation of the management system and mechanism of the Qianhai Shekou Free Trade Zone, and establishing a cooperation platform to promote the construction of the free trade zone.
As at 24 December 2018, Shenzhen Urban Planning, Land and Resources Commission, Shenzhen Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone Administration, China Merchants Group and other related parties signed the Land Restructuring Agreement, which clarified the Qianhai Land Specific content such as the implementation scheme, compensation value, and land use property exchange plan. The Land Restructuring Agreement shall take effect after being approved by the relevant shareholders' meeting.
An extraordinary meeting of the shareholders of the Company was held on 25 February 2019 and has approved the disposal of certain parts of the land in Qianhai, Shenzhen, the PRC, which is held by two subsidiaries of the Group for the purpose of developing the Qianhai-Shekou Free Trade Zone with affiliates of Shenzhen Qianhai Shenzhen-Hong Kong Modern Services Commission through the establishment of another joint venture company. The consideration for the disposal is approximately RMB 5,693,000,000.00.
Up to date of this report, the disposal has not yet been completed.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XII) EVENTS AFTER THE BALANCE SHEET - continued
3. Merge under non-identical control issues
As at 2 January 2019, the Company and Guangdong Sinotrans Co., Ltd. signed the "Share Transfer Agreement on Zhanjiang Port (Group) Co., Ltd." and transferred the shares of Zhanjiang Port (Group) held by Guangdong Sinotrans Co., Ltd. 201,034,548 common shares of the company, accounting for5% of the total number of issued shares of Zhanjiang Port (Group) Co., Ltd. on the date of signing the agreement, the consideration for the conversion is RMB 375,334,390.00. As at 8 January2019, Chiwan Port (Hong Kong) Co., Ltd., a subsidiary of the Company, and Zhanjiang Infrastructure Construction Investment Group Co., Ltd. and Zhanjiang Port (Group) Co., Ltd. signed the "Zhejiang Port (Group) Co., Ltd. Limited The Capital Increase Agreement of the Company (Group) Co., Ltd., the agreement stipulates that Zhanjiang Port (Group) Co., Ltd. intends to issue 1,853,518,190 common shares at a price of RMB 1.867 per share or equivalent foreign currency (determined according to the capital exchange rate). Its registered capital increased to RMB 5,874,209,145.00. Among them, Chiwan Port (Hong Kong) Co., Ltd. intends to subscribe for 1,606,855,919 ordinary shares, accounting for27.73544% of the issued shares of Zhanjiang Port (Group) Co., Ltd. on the date of issue of the subscription shares. The total is RMB 3,000,000,000.77 or the equivalent foreign currency (determined according to the capital contribution rate).
The above transaction was completed on February 3, 2019. After the transaction, the company directly holds3.4223% of the shares of Zhanjiang Port (Group) Co., Ltd., and indirectly holds Zhanjiang Port through the subsidiary China Merchants International Terminal (Zhanjiang) Co., Ltd.27.5782% of the shares of the Group Co., Ltd., indirectly through the subsidiary Chiwan Port (Hong Kong) Co., Ltd., holding27.3544% of Zhanjiang Port (Group) Co., Ltd., and enjoying a total of58.3549% of Zhanjiang Port (Group) Co., Ltd. Voting rights.
Except for the subsequent events that need to be disclosed above, the Group has no other significant issues after the balance sheet date.
(XIII) OTHER SIGNIFICANT EVENTS
1．Significant equity entrusted management matters
As at 13 December 2018, the 10th Extraordinary Meeting of the 9th Board of Directors of the Company reviewed and approved the signing of the "Equity Custody Agreement of Liaoning Port Group Co., Ltd." with the China Merchants (Liaoning) Port Development Co., Ltd. The "Proposal" agrees that the China Merchants Group (Liaoning) Port Development Co., Ltd., a wholly-owned subsidiary of China Merchants Group, entrusts its49.9% stake in Liaoning Port Group Co., Ltd. to the company for management. The China Merchants (Liaoning) Port Development Co., Ltd. The company pays the company a fixed custodian fee of RMB 1,000,000.00 per year.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIII) OTHER SIGNIFICANT EVENTS - continued
2． Segment reporting
(1) Basis for determining and accounting treatments of reporting segments
The key management team of the Company is regarded as the CODM, who reviews the Group's internal reports in order to assess performance, allocate resources and determine the operating segments.
The CODM manages the Group's operations by divisions from both business and geographic perspectives.
From business and financial perspectives, management assesses the performance of the Group's business operations including ports operation, bonded logistics operation, port-related
manufacturing operation and other operations.
Ports operation
Ports operation includes container terminal operation, bulk and general cargo terminal operation operated by the Group and its associates and joint ventures.
The Group's reportable segments of the ports operation are as follows:
(a) Mainland China, Hong Kong and Taiwan
• Pearl River Delta
• Yangtze River Delta
• Bohai Rim
• Others
(b) Other locations outside of Mainland China, Hong Kong and Taiwan
Bonded logistics operation
Bonded logistics operation includes logistic park operation, ports transportation and airport cargo handling operated by the Group and its associates.
Other operations
Other operations mainly includes property development and investment and construction of modular housing operated by the Group's associate, property investment operated by the Group and corporate function.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting - continued
(1) Basis for determining and accounting treatments of reporting segments - continued Each of the segments under ports operation include the operations of a number of ports in various locations within the geographic locations, each of which is considered as a separate operating segment by the CODM. For the purpose of segment reporting, these individual operating segments have been aggregated into reportable segments on geographic basis in order to present a more systematic and structured segment information. To give details of each of the operating segments, in the opinion of the directors of the Company, would result in particulars of excessive length.
Bonded logistics operation and other operations include a number of different operations, each of which is considered as a separate but insignificant operating segment by the CODM. For segment reporting, these individual operating segments have been aggregated according to the natures of their operations to give rise to more meaningful presentation.
There are no material sales or other transactions between the segments.
As at 31 December 2018, around64% of The Group's non-current assets other than financial instruments and deferred tax assets are located in Mainland China.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIII) OTHER SIGNIFICANT EVENTS - continued
2 Segment reporting - continued
(2) Segment financial information
Segment financial information in 2018 as following:
Unit：RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||Ports operation|||||||||Unallocated|Total|
||||Mainland China, Hong Kong and Taiwan|||||Other locations|Sub-total|Bonded logisticsoperation|Others|||
||||Pearl River Delta||Yangtze RiverDelta|Bohai Rim|Others|||||||
||Revenue||5,303,465,225.60|-||69,907,311.12|747,571,785.87|3,063,582,986.50|9,184,527,309.09|386,269,027.02|132,598,286.47|-|9,703,394,622.58|
||Cost||3,093,917,475.00|-||55,661,268.67|631,405,970.58|1,522,302,179.06|5,303,286,893.31|214,495,776.55|221,458,726.01|-|5,739,241,395.87|
|Sp|egment operating||2,209,547,750.60|-||14,246,042.45|116,165,815.29|1,541,280,807.44|3,881,240,415.78|171,773,250.47|(88,860,439.54)|-|3,964,153,226.71|
||rofit (loss)|||||||||||||
||Adjustment：|||||||||||||
|T|axes and levies||71,372,197.96|284,627.70||1,160,781.85|10,778,344.95|112,983,856.21|196,579,808.67|32,621,484.27|6,211,213.84|541,296.73|235,953,803.51|
||Administrative expense|s|390,753,695.03|3,749,372.10||9,930,005.82|97,317,524.40|193,183,913.13|694,934,510.48|36,924,775.16|28,852.77|519,977,537.04|1,251,865,675.45|
|d|Research and||118,865,768.66|-||-|-|-|118,865,768.66|-|-|3,123,329.16|121,989,097.82|
||evelopment expenses|||||||||||||
|F|inancial expenses||33,812,457.43|82,614,789.19||(406,546.82)|19,344.58|419,088,994.19|535,129,038.57|38,623,819.16|51,653,121.27|1,018,012,123.95|1,643,418,102.95|
|Ia|mpairment losses of||-|-||-|-|-|-|-|-|-|-|
||ssets|||||||||||||
|Il|mpairment of credit||10,760,473.33|-||-|10,616.21|(3,410,788.03)|7,360,301.51|168,279.09|-|-|7,528,580.60|
||oss|||||||||||||
||Other income||32,901,021.72|408,333.33||113,998.17|12,684,291.81|-|46,107,645.03|1,411,014.72|-|8,661,467.89|56,180,127.64|
|I|nvestment income||143,206,331.48|2,706,435,143.32||322,968,785.89|(21,733,692.03)|592,367,561.64|3,743,244,130.30|17,758,667.43|207,255,360.07|(430,008.32)|3,967,828,149.48|
|c|Gains (losses) from||45,351.40|(873,891,271.63)||(74,594,618.22)|-|(125,966,299.23)|(1,074,406,837.68)|-|-|-|(1,074,406,837.68)|
||hanges in fair value|||||||||||||
|a|Gains on disposal of||9,216,008.49|-||-|(418,481.28)|10,450,227.43|19,247,754.64|26,746.03|-|(16,005.34)|19,258,495.33|
||ssets|||||||||||||
||Operating profit||1,769,351,871.28|1,746,303,416.03||252,049,967.44|(1,427,896.35)|1,296,286,321.78|5,062,563,680.18|82,631,320.97|60,501,732.65|(1,533,438,832.65)|3,672,257,901.15|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting - continued
(2) Segment financial information - continued
Segment financial information in 2018 as following:
Unit：RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||Ports operation||||||||Bonded logisticsoperation|Others|Unallocated|Total|
|||||Mainland China, Hong Kong and Taiwan|||||Other locations|Sub-total|||||
||||Pearl River Delta|||Yangtze River|Bohai Rim|Others|||||||
|||||||Delta|||||||||
||Non-operating income||34,351,337.85||-||424,231.58|1,931,244.58|24,074,268.10|60,781,082.11|1,216,591.28|943,208.69|4,187,807.90|67,128,689.98|
||Non-operating expense|s|40,405,962.28||4,010.31||400,000.00|1,057,097.28|65,315,693.08|107,182,762.95|6,240,627.54|200,000.00|11,407,908.08|125,031,298.57|
||Gross profit||1,763,297,246.85||1,746,299,405.72||252,074,199.02|(553,749.05)|1,255,044,896.80|5,016,161,999.34|77,607,284.71|61,244,941.34|(1,540,658,932.83)|3,614,355,292.56|
|I|ncome tax expenses||294,544,209.66||43,364,189.75||12,909,324.23|16,064,881.66|94,332,207.91|461,214,813.21|14,785,763.43|49,933,513.49|202,506,448.47|728,440,538.60|
||Net profit||1,468,753,037.19||1,702,935,215.97||239,164,874.79|(16,618,630.71)|1,160,712,688.89|4,554,947,186.13|62,821,521.28|11,311,427.85|(1,743,165,381.30)|2,885,914,753.96|
|S|egment assets||24,361,542,350.83||24,738,700,129.24||6,498,939,975.26|11,975,384,175.20|43,137,915,507.68|110,712,482,138.21|2,768,799,649.68|10,986,223,834.86|3,550,578,792.93|128,018,084,415.68|
|T|otal assets in the financial statements|||||||||||||128,018,084,415.68|
||Segment liabilities||3,716,328,520.15||620,013,763.67||108,999,946.50|2,399,865,586.89|11,874,203,103.78|18,719,410,920.99|809,775,291.61|1,161,920,752.31|26,910,051,577.96|47,601,158,542.87|
||Total liabilities in the financial statements|||||||||||||47,601,158,542.87|
|Si|upplementary||||||||||||||
||nformation:||||||||||||||
|A|Depreciation and||777,378,984.84||-||2,030,173.13|287,332,851.66|698,620,897.88|1,765,362,907.51|80,463,924.42|165,229,175.14|16,903,705.26|2,027,959,712.33|
||mortization||||||||||||||
|I|nterest income||21,954,329.37||508,539.88||438,043.11|40,225,269.81|84,159,789.64|147,285,971.81|1,052,104.99|828,268.56|123,286,948.50|272,453,293.86|
|I|nterest expense||44,507,286.38||1,009,944.96||-|39,664,933.55|398,730,346.09|483,912,510.98|32,382,213.72|39,755,069.06|1,078,051,538.04|1,634,101,331.80|
|Ifi|nvestment income|y|134,907,307.68||2,674,327,364.23||309,435,330.98|(21,882,199.10)|592,062,707.31|3,688,850,511.10|17,758,667.43|207,255,360.07|-|3,913,864,538.60|
||rom long-term equity||||||||||||||
||nvestment under equit||||||||||||||
||method||||||||||||||
|Li|ong-term equity|y|2,629,326,400.75||23,003,406,812.98||5,696,221,052.02|2,540,719,065.34|10,818,356,531.61|44,688,029,862.70|340,969,759.95|5,147,577,640.75|-|50,176,577,263.40|
||nvestment under equit||||||||||||||
||method||||||||||||||
|oe|Non-current assets||18,136,739,566.92||296,477,731.85||29,099,361.17|7,816,817,366.31|29,571,968,313.58|55,851,102,339.83|2,206,436,654.13|5,573,444,649.09|480,592,127.03|64,111,575,770.08|
||ther than long-term||||||||||||||
||quity investment||||||||||||||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting - continued
(2) Segment financial information - continued
The Group's revenue by geographical areas of operations and information about its non-current assets other than financial instruments and deferred tax assets presented based on the geographical areas in which the assets are located as follows:
Unit：RMB
|||||
|-|-|-|-|
|Revenue from external transactions||Closing balance|Opening balance(restated)|
||Mainland China, Hong Kong and Taiwan|6,635,924,788.34|6,036,330,920.53|
||Pearl River Delta|5,705,075,363.71|5,408,964,837.46|
||Yangtze River Delta|-|-|
||Bohai Rim|183,277,638.76|172,188,112.13|
||Others|747,571,785.87|455,177,970.94|
||Other locations|3,067,469,834.24|1,508,304,364.43|
||Total|9,703,394,622.58|7,544,635,284.96|

Unit：RMB
|||||
|-|-|-|-|
|Non-current assets||Closing balance|Opening balance(restated)|
||Mainland China, Hong Kong and Taiwan|73,602,488,004.01|69,066,842,626.11|
||Pearl River Delta|33,618,069,629.60|31,673,369,539.45|
||Yangtze River Delta|23,299,884,544.83|21,204,548,605.13|
||Bohai Rim|6,316,574,360.92|6,271,516,876.96|
||Others|10,367,959,468.66|9,917,407,604.57|
||Other locations|40,685,665,029.47|26,038,093,607.43|
||Total|114,288,153,033.48|95,104,936,233.54|

 (3) Degree of reliance on major customers
The total operating income derived from the top five clients of the Group is RMB
2,771,538,285.20, occupying28.56% of the Group's total operating income.
(XIV). NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS 1. Notes and Accounts receivable
(1) Total of notes and accounts receivable
Unit: RMB
|||||
|-|-|-|-|
|Item||Closing balance|Opening balance(restated)|
||Notes receivable|-|-|
||Accounts receivable|23,444,175.65|12,987,394.84|
||Total|23,444,175.65|12,987,394.84|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIV). NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
1. Notes and Accounts receivable - continued
(2) Accounts receivable
(a) Disclosure of accounts receivable by categories - continued
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Categories||Expected credit loss rate(%)|||Closing balance|||||
||||||Carrying amount||Provision||Book value|
||A||0.00-0.10|23,444,175.65||-||23,444,175.65||
||B||0.10-0.30|-||-||-||
||C||0.30-50.00|-||-||-||
||D||50.00-100.00|-||-||-||
||Total|||23,444,175.65||-||23,444,175.65||

 (b) In year 2018, the company has no actual write-off of accounts receivable.
(c) The top five balances of accounts receivable classified by debtor
Unit: RMB
|||||
|-|-|-|-|
||||Proportion of the|
||||amount to the total|
|Name of customer|Amount|Aging||
||||accounts receivable|
||||(%)|
|Client F|5,566,248.78|Within 1 year|23.74|
|Client G|3,872,340.00|Within 1 year|16.52|
|Client H|3,056,777.34|Within 1 year|13.04|
|Client I|2,910,036.03|Within 1 year|12.41|
|Client J|1,502,541.05|Within 1 year|6.41|
|Total|16,907,943.20||72.12|

 2. Other receivables
(1) Disclosure of other receivables by nature
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening|
|||||balance(restated)|
||Interest receivable|34,899.02|-||
||Dividends receivable|329,153,465.74|589,478,376.49||
||Other receivables|321,861,868.32|583,090,959.69||
||Total|651,050,233.08|1,172,569,336.18||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS– continued
2. Other receivables– continued
(2) Interest receivable
(a) Disclosure of interest receivable by categories
Unit: RMB
||||||
|-|-|-|-|-|
|Category||Closing balance||Opening balance|
|||||(restated)|
||Fixed term deposit|34,899.02|-||

 (b) As at 31 December 31 2018, the Group has no significant overdue interest.
(3) Dividend receivable
(a) Disclosure of dividend receivable by categories
Unit: RMB
||||||
|-|-|-|-|-|
|Entities||Closing balance||Opening balance (restated)|
|Dongguan Chiwan Warf Co., Ltd. ("DGW")|103,355,370.74||103,355,370.74||
|CHCC|96,378,106.61||97,455,574.40||
|DGT|88,196,930.66||88,196,930.66||
|Shenzhen Chiwan Tugboat Co., Ltd|21,929,842.24||21,606,823.62||
|CMBL|15,707,120.00||-||
|Shenzhen Chiwan Transportation Co., Ltd|3,299,252.31||2,619,884.81||
|Shenzhen Chiwan International Freight Agency|286,843.18||193,834.42||
|Co., Ltd|||||
|CCT|-||276,049,957.84||
|Total|329,153,465.74||589,478,376.49||
|Net: provision of credit loss|-||-||
|Book value|329,153,465.74||589,478,376.49||

 (b) Significant dividend receivable aging more than one year
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Category||Closing balance||Outstanding Reason||Provision or not|
||Dongguan Chiwan Warf|103,355,370.74||Working on and expected to be received bythe end of 2019||No||
||Co., Ltd. ("DGW")|||||||
|DGT||88,196,930.66||Working on and expected to be received bythe end of 2019||No||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS– continued
2. Other receivables - continued
(4) Other receivables
(a) Disclosure of other receivables by categories
As a part of cooperate credit risk management, the company rank the credit risk of its client, and determine theaverage expected loss rate of each internal credit rating level. These average expected loss rates are determined by considering the historical actual loss and the current and future economic situation.
As at 31 December 2018, the credit risk and expected credit loss of other receivables of each category of customers are presented as below:
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Internal credit rating|Expected LossRate (% )|Closing balance||||||||
||||Expected credit loss||Lifetime expected credit loss||Lifetime expected credit loss||Total|
||||in 12 months||(not credit-impaired)||(credit-impaired)|||
|A|0.00-0.10|321,861,868.32||-||-||321,861,868.32||
|B|0.10-0.30|-||-||-||-||
|C|0.30-50.00|-||-||-||-||
|D|50.00-100.00|-||-||383,456.60||383,456.60||
|Carrying amount||321,861,868.32||-||383,456.60||322,245,324.92||
|Provision of credit loss||-||-||383,456.60||383,456.60||
|Book value||321,861,868.32||-||-||321,861,868.32||

 (a) Changes in provision for credit loss of other receivables
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Category|||2018||||||
||||Expected credit loss in 12||Lifetime expected credit loss(not credit-impaired)||Lifetime expected credit loss|Total|
||||months||||(credit-impaired)||
|3|1 Dec 2017|-||-||383,456.60||383,456.60|
|R|emeasurement of provision for|-||-||-||-|
||expected credit loss||||||||
|1|Jan 2018|-||-||383,456.60||383,456.60|
|Pf|rovision for expected credit loss|-||-||-||-|
||or the year||||||||
|Rt|eversal of expected credit loss for|-||-||-||-|
||he year||||||||
|Ec|ffect of changes in the scope of|-||-||-||-|
||onsolidation||||||||
|Ee|ffect of changes in foreign|-||-||-||-|
||xchange||||||||
|3|1 Dec 2018|-||-||383,456.60||383,456.60|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS– continued
2. Other receivables - continued
(3) Other receivables - continued
(b) Disclosure of other receivables by nature
Unit: RMB
||||||
|-|-|-|-|-|
|Nature||Closing balance||Opening balance (restated)|
|Amounts due from related parties|316,567,355.24||482,067,880.47||
|Temporary payments|4,785,167.82||4,360,323.59||
|Deposits|372,042.31||1,571,309.30||
|Others|520,759.55||95,474,902.93||
|Total|322,245,324.92||583,474,416.29||
|Net: provision of credit loss|383,456.60||383,456.60||
|Book value|321,861,868.32||583,090,959.69||

 (c) There is no other receivables write-off during this year.
(d) The top five balances of other receivables classified by debtor
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Closing|
||Nature of the|||Proportion of the|balance of|
|Entities||Closing balance|Aging|amount to the total||
||fund||||provision for|
|||||other receivable (%)||
||||||credit loss|
|DGT|Loan to relatedparties|165,500,000.00|Within 1 year|51.36|-|
|Dongguan Chiwan Warf Co., Ltd.|Loan to relatedparties|151,067,355.24|Within 1 year|46.88|-|
|("DGW")||||||
|Chiwan Wharf Holdings (Hong|Temporarypayments|2,955,962.35|Within 1 year to 2 year andover 3 year|0.92|-|
|Kong) Limited||||||
|CCT|Temporarypayments|736,080.69|Within 1 year|0.23|-|
|CHCC|Temporarypayments|320,239.46|Within 1 year|0.10|-|
|Total||320,579,637.74||99.49|-|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS– continued
3. Long-term equity investments
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investees||Opening balance|Changes||||||||||Closing balance|Closing balance ofprovision forimpairment|
||||Increase|Decrease|Investment incomeunder equitymethod||Reconciling item|s|Other equitymovements|Cash dividends orprofits announcedof issuance|Provision forimpairment|Others|||
||||||||from other||||||||
||||||||comprehensive||||||||
||||||||income||||||||
|I. Subsidiaries|||||||||||||||
|SA|henzhen Chiwan International Freight|5,500,000.00|-|-|-|-|||-|-|-|-|5,500,000.00|-|
||gency Co., Ltd||||||||||||||
|CHCC||250,920,000.00|-|-|-|-|||-|-|-|-|250,920,000.00|-|
|Shenzhen Chiwan Transportation Co., Ltd||7,000,000.00|-|-|-|-|||-|-|-|-|7,000,000.00|-|
|CL|hiwan Wharf Holdings (Hong Kong)|1,070,000.00|-|-|-|-|||-|-|-|-|1,070,000.00|-|
||imited||||||||||||||
|Shenzhen Chiwan Tugboat Co., Ltd||24,000,000.00|-|-|-|-|||-|-|-|-|24,000,000.00|-|
|CCT||421,023,199.85|-|-|-|-|||-|-|-|-|421,023,199.85|-|
|Dongguan Chiwan Warf Co., Ltd. ("DGW")||186,525,000.00|-|-|-|-|||-|-|-|-|186,525,000.00|-|
|DGT||175,000,000.00|-|-|-|-|||-|-|-|-|175,000,000.00|-|
|Chiwan Shipping (Hong Kong) Limited||1,051,789.43|-|-|-|-|||-|-|-|-|1,051,789.43|-|
|CMPORT (note)||-|26,170,129,771.99|-|-|-|||-|-|-|-|26,170,129,771.99|-|
|Cl|hina merchants port (zhoushan) roller|-|149,709,800.00|-|-|-|||-|-|-|-|149,709,800.00|-|
||oading logistics co. LTD||||||||||||||
|Subtotal||1,072,089,989.28|26,319,839,571.99|-|-|-|||-|-|-|-|27,391,929,561.27|-|
|II. Associates|||||||||||||||
|CI|hina Merchants Holdings (International)|16,875,997.65|-|-|2,556,570.73|-|||-|1,158,000.00|-|-|18,274,568.38|-|
||nformation Technology Co., Ltd||||||||||||||
|CMBL||343,318,551.85|-|-|12,007,805.81|-|||881,145.07|15,707,120.00|-|-|340,500,382.73|-|
|Subtotal||360,194,549.50|-|-|14,564,376.54|-|||881,145.07|16,865,120.00|-|-|358,774,951.11|-|
|III. Joint ventures|||||||||||||||
|COHA (Laizhou)||783,668,303.84|-|-|48,450,765.57|-|||-|38,562,004.83|-|-|793,557,064.58|-|
|Total||2,215,952,842.62|26,319,839,571.99|-|63,015,142.11|-|||881,145.07|55,427,124.83|-|-|28,544,261,576.96|-|

CHINA MERCHANTS PORT GROUP CO., LTD.
(FORMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
4. Operating income and operating costs
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|||2018||||2017|||
||||Income||Cost||Income||Cost|
||Principal operating|211,782,804.61||158,561,191.30||230,376,600.39||147,184,443.19||
||Other operating|32,116,448.46||1,504,260.12||31,751,483.49||756,451.35||
||Total|243,899,253.07||160,065,451.42||262,128,083.88||147,940,894.54||

 5. Investment income
(1) Details of investment income
Unit: RMB
||||
|-|-|-|
|Item|2018|2017|
|Income from long-term equity investments under cost method|121,894,044.34|589,478,376.49|
|Income from long-term equity investments under equity|63,015,142.10|49,683,858.86|
|method|||
|Income from Other investments in equity instruments|8,228,975.00||
|Investment income on available-for-sale financial assets, etc.||9,417,000.00|
|Total|193,138,161.44|648,579,235.35|

 (2) Income from long-term equity investments under cost method
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Investment||2018|2017||Reasons for increases or decreases|
||||||in the current compared to the prior|
||||||period|
|CHCC||96,378,106.61|97,455,574.40|The profits distributed byinvestee fluctuate||
|Shenzhen Chiwan Tugboat Co., Ltd||21,929,842.24|21,606,823.62|The profits distributed byinvestee fluctuate||
||Shenzhen Chiwan Transportation Co.,|3,299,252.31|2,619,884.81|The profits distributed byinvestee fluctuate||
||Ltd|||||
||Shenzhen Chiwan International|286,843.18|193,834.42|The profits distributed byinvestee fluctuate||
||Freight Agency Co., Ltd|||||
|CCT||-|276,049,957.84|The profits distributed byinvestee fluctuate||
||Dongguan Chiwan Warf Co., Ltd.|-|103,355,370.74|The profits distributed byinvestee fluctuate||
||("DGW")|||||
|DGT||-|88,196,930.66|The profits distributed byinvestee fluctuate||
||Total|121,894,044.34|589,478,376.49|||

CHINA MERCHANTS PORT GROUP CO., LTD.
(FOMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2018
1. BREAKDOWN OF EXTRAORDINARY GAINS AND LOSSES
Unit: RMB
||||
|-|-|-|
|Item|Amounts|Remarks|
|Gains or losses on disposal of non-current assets|6,512,480.64||
|Tax refunds or reductions with ultra vires approval or without official approval|-||
|documents|||
|Government grants recognized in profit or loss (except for grants that are closely|14,050,544.16||
|related to the Company's business and are in amounts and quantities fixed in|||
|accordance with the national standard)|||
|Money lending income earned from non-financial institutions in profit or loss|-||
|The excess of attributable fair value of identifiable net assets over the|-||
|consideration paid for subsidiaries, associates and joint ventures|||
|Gains or losses on exchange of non-monetary assets|-||
|Gains or losses on entrusted investments or assets management|-||
|Provision of impairment losses for each asset due to force majeure, e.g. natural|-||
|disasters|||
|Gains or losses on debt restructuring|-||
|Business restructuring expenses, e.g., expenditure for layoff of employees,|-||
|integration expenses, etc.|||
|Gains or losses relating to the unfair portion in transactions with unfair transaction|-||
|price|||
|Net profit or loss of subsidiaries recognized as a result of business combination of|2,685,592,888.44||
|enterprises under common control from the beginning of the period up to the|||
|business combination date (Note)|||
|Gains or losses arising from contingencies other than those related to normal|-||
|operating business|||
|Gains or losses on changes in the fair value of financial assets and financial|-||
|liabilities held for trading and investment income on disposal of held-for-trading|||
|financial assets, held-for-trading financial liabilities and available-for-sale|||
|financial assets, other than the effective hedging activities relating to normal|||
|operating business|||
|Reversal of provision for accounts receivable that are tested for credit loss|-||
|individually|||
|Gains or losses on entrusted loans|-||
|Gains or losses on changes in the fair value of investment properties that are|-||
|subsequently measured using the fair value model|||
|Effects on profit or loss of one-off adjustment to profit or loss for the period|-||
|according to the requirements by tax laws and accounting laws and regulations|||
|Custodian fees earned from entrusted operation|-||
|Other non-operating income or expenses other than above|(3,767,817.73)||
|Other profit or loss that meets the definition of non-recurring profit or loss(note)|(121,311,211.59)||
|Tax effects|(3,010,149.89)||
|Effects of minority interest (after tax)|(2,003,803,627.07)||
|Total|574,263,106.96||

Note: The main amount is the agent fees of China Merchants Port Group Co., Ltd. (formally known as "Shenzhen Chiwan Wharf Holdings Limited" (hereinafter referred to as "the company"), resulted from business combination of enterprises under common control.
CHINA MERCHANTS PORT GROUP CO., LTD.
(FOMERLY KNOWN AS "SHENZHEN CHIWAN WHARF HOLDINGS LIMITED")
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2018
2. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
The return on net assets and EPS have been prepared by Shenzhen Chiwan Wharf Co., Ltd. in accordance with Information Disclosure and Presentation Rules for Companies Making Public Offering No. 9 - Calculation and Disclosure of Return on Net Assets and Earnings per Share (revised in 2010) issued by China Securities Regulatory Commission.
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Category|||Weighted average||ESP|||
||||return on net assets (%)||Basic ESP||Diluted EPS|
||Net profit for the current period attributable to ordinary|3.8830||0.6080||0.6080||
||shareholders|||||||
||Net profit attributable to ordinary shareholders after|1.8380||0.2878||0.2878||
||deducting extraordinary gains and losses|||||||