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招商港口(001872)_公司公告_招港B：2025年半年度财务报告(英文版)

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招港B：2025年半年度财务报告(英文版)（下载公告）
公告日期:2025-08-30

CHINAMERCHANTSPORTGROUPCO.,LTD.FINANCIALSTATEMENTSFORTHEPERIODFROM1JANUARYTO30JUNE2025

FINANCIALSTATEMENTSFORTHEPERIODFROM1JANUARYTO30JUNE2025

CONTENTSPAGE(S)

CONSOLIDATEDBALANCESHEET1-3BALANCESHEETOFTHECOMPANY4-6CONSOLIDATEDINCOMESTATEMENT7–8INCOMESTATEMENTOFTHECOMPANY9CONSOLIDATEDCASHFLOWSTATEMENT10CASHFLOWSTATEMENTOFTHECOMPANY11CONSOLIDATEDSTATEMENTOFCHANGESINSHAREHOLDERS'EQUITY12-13THECOMPANY'SSTATEMENTOFCHANGESINSHAREHOLDERS'EQUITY14-15NOTESTOTHEFINANCIALSTATEMENTS16-202

-1-

AT30JUNE2025

ConsolidatedBalanceSheet

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes30/06/202531/12/2024
CurrentAssets:
Cashandbankbalances(VIII)114,996,290,255.1616,630,400,701.13
Including:Cashdepositedinthefinancecompany(XV)6(1)2,904,541,481.794,745,991,554.35
Financialassetsheldfortrading(VIII)24,833,561,128.785,685,135,472.01
Derivativefinancialassets--
Billsreceivable(VIII)3181,745,578.07270,127,883.63
Accountsreceivable(VIII)42,241,182,255.011,193,408,383.78
Receivablesunderfinancing--
Prepayments(VIII)592,525,839.8559,177,117.22
Fundsreceivableundercentralisedmanagement--
Otherreceivables(VIII)61,851,417,043.981,166,499,343.90
Including:Dividendsreceivable(VIII)61,247,854,681.90554,387,723.94
Inventories(VIII)7315,904,888.70269,958,020.34
Including:Rawmaterials309,985,649.99260,819,412.56
Goodsinstock(finishedproducts)4,740,217.774,683,965.30
Contractassets--
Assetsheldforsale--
Non-currentassetsduewithinoneyear(VIII)834,998,540.2534,997,992.08
Othercurrentassets(VIII)9235,896,898.97251,697,812.77
Totalcurrentassets24,783,522,428.7725,561,402,726.86
Non-currentAssets:
Debtinvestments--
Otherdebtinvestments--
Long-termreceivables(VIII)103,862,586,894.193,777,373,574.70
Long-termequityinvestments(VIII)11101,775,373,381.96100,018,029,894.96
Investmentsinotherequityinstruments(VIII)12139,451,887.05139,451,887.05
Othernon-currentfinancialassets(VIII)1328,524,600.3128,524,600.31
Investmentproperties(VIII)143,225,253,829.563,288,690,070.60
Fixedassets(VIII)1530,161,818,167.7730,689,217,791.45
Including:Costoffixedassets56,440,763,406.1555,832,500,023.64
Accumulateddepreciation26,065,839,227.7724,930,618,296.33
Provisionforimpairmentoffixedassets213,367,342.81213,290,383.06
Constructioninprogress(VIII)163,792,648,711.733,311,109,996.59
Right-of-useassets(VIII)178,901,865,474.398,957,352,063.54
Intangibleassets(VIII)1817,824,133,457.0417,335,082,422.84
Developmentcosts(IX)228,975,366.1963,395,053.69
Goodwill(VIII)196,233,179,553.365,933,310,929.34
Long-termdeferredexpenses(VIII)20924,598,080.29940,404,479.94
Deferredtaxassets(VIII)21371,891,788.29365,481,207.77
Othernon-currentassets(VIII)221,090,229,540.251,109,025,181.81
Totalnon-currentassets178,360,530,732.38175,956,449,154.59
TOTALASSETS203,144,053,161.15201,517,851,881.45

Theaccompanyingnotesformpartofthefinancialstatements.

-2-

AT30JUNE2025

ConsolidatedBalanceSheet-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes30/06/202531/12/2024
Currentliabilities:
Short-termborrowings(VIII)2312,304,605,732.7012,791,242,141.69
Financialliabilitiesheldfortrading--
Derivativefinancialliabilities--
Billspayable(VIII)24-1,536,194.00
Accountspayable(VIII)25675,684,712.35785,830,532.33
Advancepaymentsreceived(VIII)2616,210,810.2114,576,237.84
Contractliabilities(VIII)27349,057,215.91267,888,272.62
Employeebenefitspayable(VIII)281,077,454,686.931,168,592,349.15
Including:Payrollpayable1,025,617,254.271,126,682,376.20
Welfarepayable5,222,103.31-
Taxespayable(VIII)29840,396,207.20725,165,726.32
Including:Taxespayable834,255,502.34714,248,068.55
Otherpayables(VIII)303,101,766,024.671,923,980,312.98
Including:Dividendspayable(VIII)301,451,609,827.45132,334,744.28
Liabilitiesheldforsale--
Non-currentliabilitiesduewithinoneyear(VIII)3111,125,777,985.0110,506,682,795.60
Othercurrentliabilities(VIII)322,202,056,590.494,061,201,760.72
Totalcurrentliabilities31,693,009,965.4732,246,696,323.25
Non-currentLiabilities:
Long-termborrowings(VIII)3312,769,621,270.5115,582,593,255.65
Bondspayable(VIII)3415,856,475,119.7513,875,559,119.52
Including:Preferenceshares--
Perpetualbonds--
Leaseliabilities(VIII)351,481,774,029.971,387,206,990.51
Long-termpayables(VIII)363,666,248,761.373,204,582,672.75
Long-termemployeebenefitspayable(VIII)37652,014,350.46655,658,044.98
Provisions(VIII)3878,916,799.59159,435,795.50
Deferredincome(VIII)391,248,228,496.501,268,975,316.61
Deferredtaxliabilities(VIII)214,932,616,591.294,795,985,333.59
Othernon-currentliabilities(VIII)40177,475,262.01182,720,254.84
Totalnon-currentliabilities40,863,370,681.4541,112,716,783.95
TOTALLIABILITIES72,556,380,646.9273,359,413,107.20

Theaccompanyingnotesformpartofthefinancialstatements.

-3-

AT30JUNE2025

ConsolidatedBalanceSheet-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes30/06/202531/12/2024
Shareholders'equity:
Sharecapital(VIII)412,501,508,381.002,501,308,481.00
Including:Statecapital--
State-ownedcorporatecapital2,236,042,522.002,236,269,506.00
Collectivecapital--
Privatecapital238,070,596.00240,947,591.00
Foreigncapital27,395,263.0024,091,384.00
Otherequityinstruments--
Including:Preferenceshares--
Perpetualbonds--
Capitalreserve(VIII)4237,225,842,521.6537,362,981,831.67
Less:Treasuryshares319,823,707.3650,559,789.14
Othercomprehensiveincome(VIII)43-912,631,681.30-1,558,381,237.45
Including:Translationdifferenceoffinancialstatementsdenominatedinforeigncurrencies-618,526,427.60-1,030,995,258.63
Specificreserve(VIII)4458,981,586.6340,074,647.27
Surplusreserve(VIII)451,249,537,330.501,249,537,330.50
Including:Legalreserve1,249,537,330.501,249,537,330.50
Arbitraryaccumulationfund--
Retainedearnings(VIII)4622,745,034,528.3321,957,778,579.11
TotalequityattributabletoshareholdersoftheCompany62,548,448,959.4561,502,739,842.96
Non-controllinginterests68,039,223,554.7866,655,698,931.29
TOTALSHAREHOLDERS'EQUITY130,587,672,514.23128,158,438,774.25
TOTALLIABILITIESANDSHAREHOLDERS'EQUITY203,144,053,161.15201,517,851,881.45

Theaccompanyingnotesformpartofthefinancialstatements.Thefinancialstatementsweresignedbythefollowing:

XuSongHuangZhenzhouLiuShixia_________________________________________________________________________

LegalRepresentativeChiefFinancialOfficerHeadofAccountingDepartment

-4-

AT30JUNE2025

BalanceSheetoftheCompany

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes30/06/202531/12/2024
CurrentAssets:
Cashandbankbalances2,573,380,351.304,051,544,937.38
Including:Cashdepositedinthefinancecompany854,002,764.442,738,121,884.17
Financialassetsheldfortrading1,700,419,178.082,902,402,602.73
Derivativefinancialassets--
Billsreceivable--
Accountsreceivable--
Receivablesunderfinancing--
Prepayments-879,205.65
Fundsreceivableundercentralisedmanagement--
Otherreceivables(XX)12,073,806,770.802,413,442,661.68
Including:Dividendsreceivable(XX)1633,862,578.90965,690,879.89
Inventories--
Including:Rawmaterials--
Goodsinstock(finishedproducts)--
Contractassets--
Assetsheldforsale--
Non-currentassetsduewithinoneyear141,372.83-
Othercurrentassets8,449,435.948,783,543.80
Totalcurrentassets6,356,197,108.959,377,052,951.24
Non-currentAssets:
Debtinvestments--
Otherdebtinvestments--
Long-termreceivables217,225,160.369,546,673.32
Long-termequityinvestments(XX)256,177,017,105.1756,009,282,172.30
Investmentsinotherequityinstruments130,125,719.67130,125,719.67
Othernon-currentfinancialassets--
Investmentproperties--
Fixedassets25,167,038.1525,785,696.83
Including:Costoffixedassets33,875,597.8433,196,561.49
Accumulateddepreciation8,708,559.697,410,864.66
Provisionforimpairmentoffixedassets--
Constructioninprogress607,774.34607,774.34
Right-of-useassets--
Intangibleassets93,452,310.8755,685,403.63
Developmentcosts9,629,737.6553,435,391.51
Goodwill--
Long-termdeferredexpenses625,774.36287,141.10
Deferredtaxassets--
Othernon-currentassets--
Totalnon-currentassets56,653,850,620.5756,284,755,972.70
TOTALASSETS63,010,047,729.5265,661,808,923.94

Theaccompanyingnotesformpartofthefinancialstatements.

-5-

AT30JUNE2025

BalanceSheetoftheCompany-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes30/06/202531/12/2024
CurrentLiabilities:
Short-termborrowings272,439,931.95136,552,893.75
Financialliabilitiesheldfortrading--
Derivativefinancialliabilities--
Billspayable--
Accountspayable--
Advancepaymentsreceived--
Contractliabilities2,804,653.86-
Employeebenefitspayable58,883,505.0457,295,154.90
Including:Payrollpayable58,801,429.2457,135,815.24
Welfarepayable--
Taxespayable236,735.712,967,430.48
Including:Taxespayable236,735.712,967,430.48
Otherpayables508,330,169.20413,758,779.36
Including:Dividendspayable34,577,578.1234,577,578.12
Liabilitiesheldforsale--
Non-currentliabilitiesduewithinoneyear4,180,908,570.873,126,770,180.31
Othercurrentliabilities2,010,009,532.924,020,214,246.58
Totalcurrentliabilities7,033,613,099.557,757,558,685.38
Non-currentLiabilities:
Long-termborrowings6,959,000,000.007,966,000,000.00
Bondspayable6,000,000,000.006,000,000,000.00
Including:Preferenceshares--
Perpetualbonds--
Leaseliabilities--
Long-termpayables--
Long-termemployeebenefitspayable--
Provisions--
Deferredincome9,900,000.0211,000,000.00
Deferredtaxliabilities36,504,578.2337,000,434.40
Othernon-currentliabilities--
Totalnon-currentliabilities13,005,404,578.2514,014,000,434.40
TOTALLIABILITIES20,039,017,677.8021,771,559,119.78

Theaccompanyingnotesformpartofthefinancialstatements.

-6-

AT30JUNE2025

BalanceSheetoftheCompany-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemNotes30/06/202531/12/2024
Shareholders’equity
Sharecapital2,501,508,381.002,501,308,481.00
Including:Statecapital--
State-ownedcorporatecapital2,236,042,522.002,236,269,506.00
Collectivecapital--
Privatecapital238,070,596.00240,947,591.00
Foreigncapital27,395,263.0024,091,384.00
Otherequityinstruments--
Including:Preferenceshares--
Perpetualbonds--
Capitalreserve37,830,209,400.5137,773,833,882.62
Less:Treasuryshares319,823,707.3650,559,789.14
Othercomprehensiveincome121,180,807.14130,414,442.07
Including:Translationdifferenceoffinancialstatementsdenominatedinforeigncurrencies--
Specificreserve--
Surplusreserve1,249,537,330.501,249,537,330.50
Including:Legalreserve1,249,537,330.501,249,537,330.50
Arbitraryaccumulationfund--
Retainedearnings1,588,417,839.932,285,715,457.11
Totalshareholders’equity42,971,030,051.7243,890,249,804.16
TOTALLIABILITIESANDSHAREHOLDERS'EQUITY63,010,047,729.5265,661,808,923.94

Theaccompanyingnotesformpartofthefinancialstatements.

-7-

FORTHEPERIODFROM1JANUARYTO30JUNE2025

ConsolidatedIncomeStatement

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemNotesForthesixmonthsended30June
20252024
I.Totaloperatingincome(VIII)478,468,491,376.087,975,193,083.64
Including:Operatingincome8,468,491,376.087,975,193,083.64
II.Totaloperatingcosts6,475,255,491.566,443,577,275.01
Including:Operatingcosts(VIII)474,596,264,092.504,390,869,294.96
Taxesandsurcharges(VIII)48176,215,156.49163,583,488.76
Sellinganddistributionexpenses--
Generalandadministrativeexpenses(VIII)49759,073,109.44808,178,756.18
Researchanddevelopmentexpenses(VIII)50107,131,146.5584,732,961.30
Financialexpenses(VIII)51836,571,986.58996,212,773.81
Including:Interestexpenses1,015,802,958.421,148,465,132.44
Interestincome200,788,693.82240,157,542.78
Netexchangeloss(“-”forgains)16,212,019.9784,715,364.32
Add:Otherincome(VIII)52125,162,556.03108,396,207.87
Investmentincome(“-”forlosses)(VIII)533,652,835,333.373,437,849,898.46
Including:Incomefrominvestmentsinassociatesandjointventures(VIII)533,606,506,212.053,357,745,272.28
Incomearisingfromderecognitionoffinancialassetsmeasuredatamortisedcost--
Netexposurehedgingincome(“-”forlosses)--
Gainsfromchangesinfairvalue(“-”forlosses)(VIII)5421,035,446.60465,852,896.11
Reversalofcreditimpairment(“-”forlosses)(VIII)554,693,801.77315,726,501.93
Impairmentlosses(“-”forlosses)(VIII)561,621.20-
Gainsfromassetdisposals(“-”forlosses)(VIII)576,688,854.69884,468.18

Theaccompanyingnotesformpartofthefinancialstatements.

-8-

FORTHEPERIODFROM1JANUARYTO30JUNE2025

ConsolidatedIncomeStatement-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemNotesForthesixmonthsended30June
20252024
III.Operatingprofit5,803,653,498.185,860,325,781.18
Add:Non-operatingincome(VIII)5817,571,993.9917,538,434.73
Including:Governmentgrants--
Less:Non-operatingexpenses(VIII)5912,789,299.8333,699,628.09
IV.Profitbeforeincometax5,808,436,192.345,844,164,587.82
Less:Incometaxexpenses(VIII)62728,408,809.32804,518,878.51
V.Netprofit5,080,027,383.025,039,645,709.31
(I)Netprofitclassifiedbycontinuityofoperations
1.Netprofitfromcontinuingoperation5,080,027,383.025,039,645,709.31
2.Netprofitfromdiscontinuedoperation--
(II)Netprofitclassifiedbyownership
1.AttributabletoshareholdersoftheCompany2,626,638,199.472,546,828,456.08
2.Non-controllinginterests2,453,389,183.552,492,817,253.23
VI.Othercomprehensiveincome,netoftax(VIII)431,602,339,066.79-738,931,293.40
(I)Othercomprehensiveincome(netoftax)attributabletoshareholdersoftheCompany645,540,659.01-299,629,708.56
1.Itemsthatwillnotbereclassifiedtoprofitorloss3,712,517.742,419,297.96
(1)Remeasurementofdefinedbenefitplan--
(2)Othercomprehensiveincomerecognisedundertheequitymethod3,712,517.742,419,297.96
(3)Changesinfairvalueofinvestmentsinotherequityinstruments--
(4)Changesinfairvalueofentity’sowncreditrisk--
(5)Others--
2.Itemthatreclassifiedtoprofitorloss641,828,141.27-302,049,006.52
(1)Othercomprehensiveincomerecognisedundertheequitymethod229,359,310.24-42,117,286.47
(2)Changesinfairvalueofotherdebtinvestments--
(3)Amountoffinancialassetsreclassifiedintoothercomprehensiveincome--
(4)Creditlossesofotherdebtinvestments--
(5)Cashflowhedgereserve(effectivepartofcashflowhedgingprofitandloss)--
(6)Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements412,468,831.03-259,931,720.05
(7)Others--
(II)Othercomprehensiveincome(netoftax)attributabletonon-controllinginterests956,798,407.78-439,301,584.84
VII.Totalcomprehensiveincomefortheperiod6,682,366,449.814,300,714,415.91
(I)AttributabletoshareholdersoftheCompany3,272,178,858.482,247,198,747.52
(II)Attributabletonon-controllinginterests3,410,187,591.332,053,515,668.39
VIII.Earningspershare
(I)Basicearningspershare(RMB/share)1.051.02
(II)Dilutedearningspershare(RMB/share)1.051.02

Theaccompanyingnotesformpartofthefinancialstatements.

-9-

FORTHEPERIODFROM1JANUARYTO30JUNE2025

IncomeStatementoftheCompany

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemNotesForthesixmonthsended30June
20252024
I.Totaloperatingincome(XX)310,468,785.488,997,504.49
Less:Operatingcosts(XX)31,869,721.921,869,721.92
Taxesandsurcharges40,139.06121,516.02
Sellinganddistributionexpenses--
Generalandadministrativeexpenses68,889,403.1963,984,932.28
Researchanddevelopmentexpenses4,901,396.855,232,425.72
Financialexpenses202,419,199.24205,245,017.72
Including:Interestexpenses230,132,141.74242,938,818.40
Interestincome31,430,097.0637,911,483.72
Netexchangeloss(“-”forgains)3,423,695.95-12,932.54
Add:Otherincome1,308,142.76214,855.53
Investmentincome(“-”forlosses)(XX)41,407,966,977.76976,137,968.37
Including:Incomefrominvestmentsinassociatesandjointventures(XX)4616,975,745.63509,529,672.39
Incomearisingfromderecognitionoffinancialassetsmeasuredatamortisedcost--
Netexposurehedgingincome(“-”forlosses)--
Gainsfromchangesinfairvalue(“-”forlosses)419,178.082,597,260.27
Reversalofcreditimpairment(“-”forlosses)--
Impairmentlosses(“-”forlosses)--
Gainsfromassetdisposals(“-”forlosses)--9,551.52
II.Operatingprofit1,142,043,223.82711,484,423.48
Add:Non-operatingincome0.01-
Including:Governmentgrants--
Less:Non-operatingexpenses--
III.Profitbeforeincometax1,142,043,223.83711,484,423.48
Less:Incometaxexpenses-495,856.17519,863.01
IV.Netprofit1,142,539,080.00710,964,560.47
Netprofitfromcontinuingoperations(“-”fornetloss)1,142,539,080.00710,964,560.47
Netprofitfromdiscontinuedoperations(“-”fornetloss)--
V.Othercomprehensiveincome,netoftax-9,233,634.9311,720,178.46
(I)Itemsthatwillnotbereclassifiedtoprofitorloss--
1.Remeasurementofthedefinedbenefitplan--
2.Othercomprehensiveincomerecognisedundertheequitymethod--
3.Changesinfairvalueofinvestmentsinotherequityinstruments--
4.Changesinfairvalueofentity’sowncreditrisk--
5.Others--
(II)Itemsthatmaybereclassifiedtoprofitorloss-9,233,634.9311,720,178.46
1.Othercomprehensiveincomerecognisedundertheequitymethod-9,233,634.9311,720,178.46
2.Changesinfairvalueofotherdebtinvestments--
3.Amountoffinancialassetsreclassifiedintoothercomprehensiveincome--
4.Creditlossesofotherdebtinvestments--
5.Cashflowhedgereserve(effectivepartofcashflowhedgingprofitandloss)--
6.Translationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatements--
7.Others--
VI.Totalcomprehensiveincomefortheperiod1,133,305,445.07722,684,738.93

Theaccompanyingnotesformpartofthefinancialstatements.

-10-

FORTHEPERIODFROM1JANUARYTO30JUNE2025

ConsolidatedCashFlowStatement

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemNotesForthesixmonthsended30June
20252024
I.Cashflowsfromoperatingactivities:
Proceedsfromsaleofgoodsandrenderingofservices7,857,539,602.927,311,373,521.74
Refundoftaxes22,625,702.0741,020,468.74
Proceedsfromotheroperatingactivities(VIII)65(1)434,331,435.71758,800,617.46
Sub-totalofcashinflows8,314,496,740.708,111,194,607.94
Paymentforgoodsandservices2,213,195,912.821,997,624,016.80
Paymenttoandforemployees1,920,159,455.081,827,233,164.62
Paymentofvarioustaxes779,324,979.56779,954,861.85
Paymentforotheroperatingactivities(VIII)65(1)393,123,076.45383,998,859.64
Sub-totalofcashoutflows5,305,803,423.914,988,810,902.91
Netcashinflowfromoperatingactivities(VIII)66(1)3,008,693,316.793,122,383,705.03
II.Cashflowsfrominvestingactivities:
Proceedsfromdisposalofinvestments22,390,000,000.0011,200,000,000.00
Investmentreturnsreceived1,400,094,606.452,049,095,054.18
Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets92,000,595.104,259,742.53
Netproceedsfromdisposalofsubsidiariesandotherbusinessunits--
Proceedsfromotherinvestingactivities(VIII)65(2)193,281,858.34-
Sub-totalofcashinflows24,075,377,059.8913,253,354,796.71
Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets1,057,042,867.97915,709,052.44
Paymentforacquisitionofinvestments21,608,606,292.729,970,468,537.76
Netpaymentforacquisitionofsubsidiariesandotherbusinessunits13,185,876.35293,538,608.94
Paymentforotherinvestingactivities(VIII)65(2)125,708,873.81260,079,588.44
Sub-totalofcashoutflows22,804,543,910.8511,439,795,787.58
Netcashinflowfrominvestingactivities1,270,833,149.041,813,559,009.13
III.Cashflowsfromfinancingactivities:
Proceedsfrominvestors4,628,001.4025,266,119.97
Including:Proceedsfromnon-controllingshareholdersofsubsidiaries-10,000,000.00
Proceedsfromborrowings9,304,432,954.5012,027,711,156.20
Proceedsfromotherfinancingactivities(VIII)65(3)255,592,133.4140,308,276.99
Sub-totalofcashinflows9,564,653,089.3112,093,285,553.16
Repaymentsofborrowings11,894,107,127.5814,254,925,680.86
Paymentfordividends,profitdistributionsorinterests(VIII)66(3)3,230,960,884.511,110,413,413.55
Including:Dividendsandprofitspaidtonon-controllingshareholdersofsubsidiaries572,192,997.59132,165,604.67
Paymentforotherfinancingactivities(VIII)65(3)381,049,285.64291,254,795.48
Sub-totalofcashoutflows15,506,117,297.7315,656,593,889.89
Netcashoutflowfromfinancingactivities-5,941,464,208.42-3,563,308,336.73
IV.Effectofforeignexchangeratechangesoncashandcashequivalents51,426,294.43-85,035,447.73
V.Netincreaseincashandcashequivalents-1,610,511,448.161,287,598,929.70
Add:Cashandcashequivalentsatthebeginningoftheperiod(VIII)66(1)16,515,069,554.9116,018,613,631.10
VI.Cashandcashequivalentsattheendoftheperiod(VIII)66(2)14,904,558,106.7517,306,212,560.80

Theaccompanyingnotesformpartofthefinancialstatements.

-11-

FORTHEPERIODFROM1JANUARYTO30JUNE2025

CashFlowStatementoftheCompany

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemNotesForthesixmonthsended30June
20252024
I.Cashflowsfromoperatingactivities:
Proceedsfromsaleofgoodsandrenderingofservices--
Refundsoftaxes220,631.354,719,888.38
Proceedsfromotheroperatingactivities129,026,795.99111,793,289.71
Sub-totalofcashinflows129,247,427.34116,513,178.09
Paymentforgoodsandservices3,450,000.00-
Paymenttoandforemployees53,334,144.1954,465,051.41
Paymentofvarioustaxes176,611.04135,871.68
Paymentforotheroperatingactivities16,200,899.1131,628,988.51
Sub-totalofcashoutflows73,161,654.3486,229,911.60
Netcashinflowfromoperatingactivities56,085,773.0030,283,266.49
II.Cashflowsfrominvestingactivities:
Proceedsfromdisposalofinvestments12,900,000,000.003,400,000,000.00
Investmentreturnsreceived1,615,238,889.61842,543,860.33
Netproceedsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets-4,620.00
Netproceedsfromdisposalsofsubsidiariesandotherbusinessunits--
Proceedsfromotherinvestingactivities1,455,335,973.181,097,124,093.96
Sub-totalofcashinflows15,970,574,862.795,339,672,574.29
Paymentforacquisitionoffixedassets,intangibleassetsandotherlong-termassets1,390,143.4713,173,117.25
Paymentforacquisitionofinvestments11,700,000,000.002,910,408,200.00
Netpaymentforacquisitionofsubsidiariesandotherbusinessunits--
Paymentforotherinvestingactivities1,645,739,266.801,990,006,067.51
Sub-totalofcashoutflows13,347,129,410.274,913,587,384.76
Netcashinflowfrominvestingactivities2,623,445,452.52426,085,189.53
III.Cashflowsfromfinancingactivities:
Proceedsfrominvestors4,628,001.4015,266,119.97
Proceedsfromborrowings2,152,406,452.286,081,483,943.48
Proceedsfromotherfinancingactivities7,586,443.41308,276.99
Sub-totalofcashinflows2,164,620,897.096,097,058,340.44
Repaymentsofborrowings4,008,000,000.004,178,000,000.00
Paymentfordividends,profitdistributionsorinterests2,031,554,308.07203,207,855.76
Paymentforotherfinancingactivities272,507,639.181,383,669.41
Sub-totalofcashoutflows6,312,061,947.254,382,591,525.17
Netcash(outflow)/inflowfromfinancingactivities-4,147,441,050.161,714,466,815.27
IV.Effectofforeignexchangeratechangesoncashandcashequivalents-267,786.5696,546.12
V.Netincreaseincashandcashequivalents(“-”fornetdecrease)-1,468,177,611.202,170,931,817.41
Add:Cashandcashequivalentsatthebeginningoftheperiod4,016,283,989.903,280,985,718.84
VI.Cashandcashequivalentsattheendoftheperiod2,548,106,378.705,451,917,536.25

Theaccompanyingnotesformpartofthefinancialstatements.

-12-

FORTHEPERIODFROM1JANUARYTO30JUNE2025

ConsolidatedStatementofChangesinShareholders'Equity

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemForthesixmonthsended30June2025
EquityattributabletoshareholdersoftheCompanyNon-controllinginterestsTotal
SharecapitalOtherequityinstrumentsCapitalreserveLess:TreasurysharesOthercomprehensiveincomeIncluding:TranslationdifferenceoffinancialstatementsdenominatedinforeigncurrenciesSpecificreserveSurplusreserveRetainedearningsSubtotal
PreferencesharesPerpetualbondsothers
I.Balanceattheendofthepreviousyear2,501,308,481.00---37,362,981,831.6750,559,789.14-1,558,381,237.45-1,030,995,258.6340,074,647.271,249,537,330.5021,957,778,579.1161,502,739,842.9666,655,698,931.29128,158,438,774.25
Add:Changesinaccountingpolicies--------------
Correctionsofpriorperioderrors--------------
Businesscombinationinvolvingentitiesundercommoncontrol--------------
Others--------------
II.Balanceatthebeginningoftheperiod2,501,308,481.00---37,362,981,831.6750,559,789.14-1,558,381,237.45-1,030,995,258.6340,074,647.271,249,537,330.5021,957,778,579.1161,502,739,842.9666,655,698,931.29128,158,438,774.25
III.Changesfortheperiod199,900.00----137,139,310.02269,263,918.22645,749,556.15412,468,831.0318,906,939.36-787,255,949.221,045,709,116.491,383,524,623.492,429,233,739.98
(I)Totalcomprehensiveincome------645,540,659.01412,468,831.03--2,626,638,199.473,272,178,858.483,410,187,591.336,682,366,449.81
(II)Shareholders’contributionsofcapital199,900.00----137,139,310.02269,263,918.22208,897.14-33,514.19-454,446.93-405,506,469.98-197,643,127.49-603,149,597.47
1.Contributionbyordinaryshareholders199,900.00---3,341,011.41------3,540,911.41-3,540,911.41
2.Contributionbyholdersofotherequityinstruments--------------
3.Equity-settledshare-basedpayments-----442,650.00-------442,650.00-211,470.30-654,120.30
4.Others-----140,037,671.43269,263,918.22208,897.14-33,514.19-454,446.93-408,604,731.39-197,431,657.19-606,036,388.58
(III)Appropriationofprofits-----------1,839,836,697.18-1,839,836,697.18-1,845,390,388.42-3,685,227,085.60
1.Appropriationforsurplusreserve--------------
Including:Legalreserve--------------
Arbitraryaccumulationfund--------------
2.Distributiontoshareholders-----------1,839,836,697.18-1,839,836,697.18-1,873,154,898.22-3,712,991,595.40
3.Others------------27,764,509.8027,764,509.80
(IV)Transferswithinequity--------------
1.Sharecapitalincreasedbycapitalreservetransfer--------------
2.Sharecapitalincreasedbysurplusreservetransfer--------------
3.Transferofsurplusreservetooffsetlosses--------------
4.Changesarisingfromdefinedbenefitplantransferredtoretainedearnings--------------
5.Transferofothercomprehensiveincometoretainedearnings--------------
6.Others--------------
(V)Specificreserve--------18,873,425.17--18,873,425.1716,370,548.0735,243,973.24
1.Appropriationduringtheperiod--------29,389,276.80--29,389,276.8028,395,051.0157,784,327.81
2.Utilisationduringtheperiod---------10,515,851.63---10,515,851.63-12,024,502.94-22,540,354.57
(VI)Others--------------
IV.Balanceattheendoftheperiod2,501,508,381.00---37,225,842,521.65319,823,707.36-912,631,681.30-618,526,427.6058,981,586.631,249,537,330.5022,745,034,528.3362,548,448,959.4568,039,223,554.78130,587,672,514.23

-13-

FORTHEPERIODFROM1JANUARYTO30JUNE2025

ConsolidatedStatementofChangesinShareholders'Equity-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemForthesixmonthsended30June2024
EquityattributabletoshareholdersoftheCompanyNon-controllinginterestsTotal
SharecapitalOtherequityinstrumentsCapitalreserveLess:TreasurysharesOthercomprehensiveincomeIncluding:TranslationdifferenceoffinancialstatementsdenominatedinforeigncurrenciesSpecificreserveSurplusreserveRetainedearningsSubtotal
Preferencesharesperpetualbondsothers
I.Balanceattheendofthepreviousyear2,499,074,661.00---37,076,846,803.06--903,626,594.35-453,976,318.2534,003,994.411,095,980,563.6819,045,313,519.7558,847,592,947.5566,722,341,481.26125,569,934,428.81
Add:Changesinaccountingpolicies--------------
Correctionsofpriorperioderrors--------------
Businesscombinationinvolvingentitiesundercommoncontrol--------------
Others--------------
II.Balanceatthebeginningoftheperiod2,499,074,661.00---37,076,846,803.06--903,626,594.35-453,976,318.2534,003,994.411,095,980,563.6819,045,313,519.7558,847,592,947.5566,722,341,481.26125,569,934,428.81
III.Changesfortheperiod1,207,820.00---252,130,900.32--299,629,708.56-259,931,720.0515,647,281.73-1,096,664,617.101,066,020,910.59337,802,759.811,403,823,670.40
(I)Totalcomprehensiveincome-------299,629,708.56-259,931,720.05--2,546,828,456.082,247,198,747.522,053,515,668.394,300,714,415.91
(II)Shareholders’contributionsofcapital1,207,820.00---252,130,900.32------253,338,720.32-121,000,479.19132,338,241.13
1.Contributionbyordinaryshareholders1,207,820.00---21,539,187.16------22,747,007.1610,000,000.0032,747,007.16
2.Contributionbyholdersofotherequityinstruments--------------
3.Equity-settledshare-basedpayments-----3,219,134.56-------3,219,134.56-1,037,221.12-4,256,355.68
4.Others----233,810,847.72------233,810,847.72-129,963,258.07103,847,589.65
(III)Appropriationofprofits-----------1,450,163,838.98-1,450,163,838.98-1,608,593,994.12-3,058,757,833.10
1.Appropriationforsurplusreserve--------------
Including:Legalreserve--------------
Arbitraryaccumulationfund--------------
2.Distributiontoshareholders-----------1,450,163,838.98-1,450,163,838.98-1,581,056,078.83-3,031,219,917.81
3.Others-------------27,537,915.29-27,537,915.29
(IV)Transferswithinequity--------------
1.Sharecapitalincreasedbycapitalreservetransfer--------------
2.Sharecapitalincreasedbysurplusreservetransfer--------------
3.Transferofsurplusreservetooffsetlosses--------------
4.Changesarisingfromdefinedbenefitplantransferredtoretainedearnings--------------
5.Transferofothercomprehensiveincometoretainedearnings--------------
6.Others--------------
(V)Specificreserve--------15,647,281.73--15,647,281.7313,881,564.7329,528,846.46
1.Appropriationduringtheperiod--------26,486,147.83--26,486,147.8327,203,210.1853,689,358.01
2.Utilisationduringtheperiod---------10,838,866.10---10,838,866.10-13,321,645.45-24,160,511.55
(VI)Others--------------
IV.Balanceattheendoftheperiod2,500,282,481.00---37,328,977,703.38--1,203,256,302.91-713,908,038.3049,651,276.141,095,980,563.6820,141,978,136.8559,913,613,858.1467,060,144,241.07126,973,758,099.21

Theaccompanyingnotesformpartofthefinancialstatements.

-14-

FORTHEPERIODFROM1JANUARYTO30JUNE2025

TheCompany'sStatementofChangesinShareholders'Equity

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemForthesixmonthsended30June2025
SharecapitalOtherequityinstrumentsCapitalreserveLess:TreasurysharesOthercomprehensiveincomeIncluding:TranslationdifferenceoffinancialstatementsdenominatedinforeigncurrenciesSpecificreserveSurplusreserveRetainedearningsTotal
Preferencesharesperpetualbondsothers
I.Balanceattheendofthepreviousyear2,501,308,481.00---37,773,833,882.6250,559,789.14130,414,442.07--1,249,537,330.502,285,715,457.1143,890,249,804.16
Add:Changesinaccountingpolicies------------
Correctionsofpriorperioderrors------------
Others------------
IIBalanceatthebeginningoftheperiod2,501,308,481.00---37,773,833,882.6250,559,789.14130,414,442.07--1,249,537,330.502,285,715,457.1143,890,249,804.16
III.Changesfortheperiod199,900.00---56,375,517.89269,263,918.22-9,233,634.93----697,297,617.18-919,219,752.44
(I)Totalcomprehensiveincome-------9,233,634.93---1,142,539,080.001,133,305,445.07
(II)Shareholders’contributionsofcapital199,900.00---56,375,517.89269,263,918.22------212,688,500.33
1.Contributionbyordinaryshareholders199,900.00---3,341,011.41------3,540,911.41
2.Contributionbyholdersofotherequityinstruments------------
3.Equity-settledshare-basedpayments-----442,650.00-------442,650.00
4.Others----53,477,156.48269,263,918.22------215,786,761.74
(III)Appropriationofprofits-----------1,839,836,697.18-1,839,836,697.18
1.Appropriationforsurplusreserve------------
Including:Legalreserve------------
Arbitraryaccumulationfund------------
2.Distributiontoshareholders-----------1,839,836,697.18-1,839,836,697.18
3.Others------------
(IV)Transferswithinequity------------
1.Sharecapitalincreasedbycapitalreservetransfer------------
2.Sharecapitalincreasedbysurplusreservetransfer------------
3.Transferofsurplusreservetooffsetlosses------------
4.Changesarisingfromdefinedbenefitplantransferredtoretainedearnings------------
5.Transferofothercomprehensiveincometoretainedearnings------------
6.Others------------
(V)Specificreserve------------
1.Appropriationduringtheperiod------------
2.Utilisationduringtheperiod------------
(VI)Others------------
IV.Balanceattheendoftheperiod2,501,508,381.00---37,830,209,400.51319,823,707.36121,180,807.14--1,249,537,330.501,588,417,839.9342,971,030,051.72

-15-

FORTHEPERIODFROM1JANUARYTO30JUNE2025

TheCompany'sStatementofChangesinShareholders'Equity-continued

RMB

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemForthesixmonthsended30June2024
SharecapitalOtherequityinstrumentsCapitalreserveLess:TreasurysharesOthercomprehensiveincomeIncluding:TranslationdifferenceoffinancialstatementsdenominatedinforeigncurrenciesSpecificreserveSurplusreserveRetainedearningsTotal
Preferencesharesperpetualbondsothers
I.Balanceattheendofthepreviousyear2,499,074,661.00---37,704,543,586.11-120,520,832.83--1,095,980,563.681,999,000,567.5743,419,120,211.19
Add:Changesinaccountingpolicies------------
Correctionsofpriorperioderrors------------
Others------------
II.Balanceatthebeginningoftheperiod2,499,074,661.00---37,704,543,586.11-120,520,832.83--1,095,980,563.681,999,000,567.5743,419,120,211.19
III.Changesfortheperiod1,207,820.00---20,433,816.31-11,720,178.46----739,199,278.51-705,837,463.74
(I)Totalcomprehensiveincome------11,720,178.46---710,964,560.47722,684,738.93
(II)Shareholders’contributionsofcapital1,207,820.00---20,433,816.31------21,641,636.31
1.Contributionbyordinaryshareholders1,207,820.00---21,539,187.16------22,747,007.16
2.Contributionbyholdersofotherequityinstruments------------
3.Equity-settledshare-basedpayments-----3,253,422.05-------3,253,422.05
4.Others----2,148,051.20------2,148,051.20
(III)Appropriationofprofits-----------1,450,163,838.98-1,450,163,838.98
1.Appropriationforsurplusreserve------------
Including:Legalreserve------------
Arbitraryaccumulationfund------------
2.Distributiontoshareholders-----------1,450,163,838.98-1,450,163,838.98
3.Others------------
(IV)Transferswithinequity------------
1.Sharecapitalincreasedbycapitalreservetransfer------------
2.Sharecapitalincreasedbysurplusreservetransfer------------
3.Transferofsurplusreservetooffsetlosses------------
4.Changesarisingfromdefinedbenefitplantransferredtoretainedearnings------------
5.Transferofothercomprehensiveincometoretainedearnings------------
6.Others------------
(V)Specificreserve------------
1.Appropriationduringtheperiod------------
2.Utilisationduringtheperiod------------
(VI)Others------------
IV.Balanceattheendoftheperiod2,500,282,481.00---37,724,977,402.42-132,241,011.29--1,095,980,563.681,259,801,289.0642,713,282,747.45

Theaccompanyingnotesformpartofthefinancialstatements.

-16-

(I)GENERALINFORMATIONOFTHECOMPANY

ChinaMerchantsPortGroupCo.,Ltd.(hereinafterreferredtoasthe"Company")isajoint-stockcompanyincorporatedinShenzhen,GuangdongProvince,on16January1993.TheheadquartersoftheCompanyislocatedinShenzhen,GuangdongProvince.TheCompanyanditssubsidiaries(collectivelythe"Group")areactuallyengagedintheprincipaloperatingactivitiesofportservices,bondedlogisticsservicesandotherbusinessessuchaspropertydevelopmentandinvestment.TheCompany'sandconsolidatedfinancialstatementswereapprovedbytheBoardofDirectorson28August2025.(II)BASISOFPREPARATIONOFFINANCIALSTATEMENTS

BasisofpreparationoffinancialstatementsTheGrouphasadoptedtheAccountingStandardsforBusinessEnterprises(hereinafterreferredtoas"ASBE")issuedbytheMinistryofFinance.Inaddition,theGrouphasdisclosedrelevantfinancialinformationinaccordancewithInformationDisclosureandPresentationRulesforCompaniesOfferingSecuritiestothePublicNo.15--GeneralProvisionsonFinancialReporting(Revisedin2023).GoingconcernAsat30June2025,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsbyRMB6,909,487,536.70.Asat30June2025,theGrouphadavailableandunusedcreditfacilitiesandbondsamountingtoRMB67,193,291,009.55,whichisgreaterthanthebalanceofthenetcurrentliabilities,areexpectedtobeaccessiblebeyondtwelvemonthsfromthedateofthebalancesheet.TheGroupcanobtainfinancialsupportfromtheavailablelineofcreditandbondswhenneeded.Therefore,thefinancialstatementshavebeenpreparedonagoingconcernbasis.(III)STATEMENTOFCOMPLIANCEWITHTHEASBE

ThefinancialstatementspreparedbytheCompanycomplywiththerequirementsoftheAccountingStandardsforBusinessEnterprises,andtrulyandcompletelyreflecttheconsolidatedandCompany'sfinancialpositionasat30June2025,andtheconsolidatedandCompany'soperatingresults,shareholders’equity,andcashflowfortheperiodfrom1Januaryto30June2025.(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES

1.AccountingyearThefinancialyearoftheGroupisfrom1Januaryto31DecemberoftheGregoriancalendaryear.

-17-

(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

2.OperatingcycleBusinesscyclereferstotheperiodfromthepurchaseofassetsforprocessingtotherealizationofcashorcashequivalents.TheGroupisactuallyengagedintheprincipaloperatingactivitiesofportservices,bondedlogisticsservicesandotherbusinessessuchaspropertydevelopmentandinvestment.

3.FunctionalcurrencyTheCompany’sfunctionalcurrencyisRenminbi(hereinafterreferredtoas"RMB"),andthesefinancialstatementsarepresentedinRMB.TheCompanyanditsdomesticsubsidiariesuseRMBastheirbookkeepingbasecurrency.TheCompany'soverseassubsidiariesdeterminetheirfunctionalcurrencyaccordingtothecurrencyintheprimaryeconomicenvironmentinwhichtheyoperate.TheCompanyadoptsRMBtoprepareitsfinancialstatements.

4.BasisofaccountingandprincipleofmeasurementTheGrouphasadoptedtheaccrualbasisofaccounting.Exceptforfinancialinstrumentswhicharemeasuredatfairvalue,theGroupadoptsthehistoricalcostastheprincipleofmeasurementofthefinancialstatements.Uponbeingrestructuredintoastockcompany,thefixedassetsandintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Whereassetsareimpaired,provisionsforassetimpairmentaremadeinaccordancewiththerelevantrequirements.Wherethehistoricalcostisadoptedasthemeasurementbasis,assetsarerecordedattheamountofcashorcashequivalentspaidorthefairvalueoftheconsiderationgiventoacquirethematthetimeoftheiracquisition.Liabilitiesarerecordedattheamountofproceedsorassetsreceivedorthecontractualamountsforassumingthepresentobligation,or,attheamountsofcashorcashequivalentsexpectedtobepaidtosettletheliabilitiesinthenormalcourseofbusiness.Fairvalueisthepricethatwouldbereceivedtosellanassetorpaidtotransferaliabilityinanorderlytransactionbetweenmarketparticipantsatthemeasurementdate,regardlessofwhetherthatpriceisdirectlyobservableorestimatedusingvaluationtechnique.Fairvaluemeasurementanddisclosureinthefinancialstatementsaredeterminedaccordingtotheabovebasis.Inthemeasurementofnon-financialassetsatfairvalue,marketparticipants'abilitytobestutilizesuchassetstogeneratemosteconomicbenefits,ortheabilitytosellsuchassetstoothermarketparticipantswhoareabletobestutilizetheassetstogenerateeconomicbenefitsistakenintoaccount.Forfinancialassetsofwhichtransactionpricesarethefairvalueoninitialrecognition,andofwhichvaluationtechniqueinvolvingunobservableinputisusedinsubsequentmeasurement,thevaluationtechniqueinthecourseofvaluationisadjustedtoenabletheresultofinitialrecognitionbasedonthevaluationtechniqueequaltothetransactionprice.

-18-

(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

4.Basisofaccountingandprincipleofmeasurement-continuedFairvaluemeasurementsarecategorizedintoLevel1,2or3basedonthedegreetowhichtheinputstothefairvaluemeasurementsareobservableandthesignificanceoftheinputstothefairvaluemeasurementinitsentirety,whicharedescribedasfollows:

?Level1inputsareunadjustedquotedpricesinactivemarketsforidenticalassetsorliabilitiesthat

theentitycanaccessatthemeasurementdate;?Level2inputsareinputs,otherthanquotedpricesincludedwithinLevel1,thatare

observablefortheassetorliability,eitherdirectlyorindirectly;and?Level3inputsareunobservableinputsfortheassetorliability.

5.Methodfordeterminationofmaterialitycriteriaandbasisforselection

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemMaterialitycriteria
Significantprepaymentsagedmorethan1yearTheamountexceedsRMB10millionindividually
Significantdividendsreceivableagedmorethan1yearTheamountexceedsRMB5millionindividually
SignificantotherreceivablesforwhichbaddebtprovisionisassessedonanindividualbasisTheamountexceedsRMB10millionindividually
ReversalorrecoveryofsignificantbaddebtprovisionTheamountexceedsRMB10millionindividually
Impairmenttestingofsignificantlong-termequityinvestmentsThecarryingamountofanindividuallong-termequityinvestment≥2%oftheamountoftotalassets
SignificantconstructioninprogressTheperiod-endcarryingamountofanindividualconstructioninprogressrangestopten
ImpairmenttestingofsignificantconstructioninprogressThecarryingamountofanindividualconstructioninprogress≥20%oftheamountoftotalconstructioninprogress
Significantaccountspayableagedmorethan1yearTheamountexceedsRMB10millionindividually
Significantadvancepaymentsreceivedagedmorethan1yearTheamountexceedsRMB10millionindividually
Significantcontractliabilitiesagedmorethan1yearTheamountexceedsRMB10millionindividually
Significantdividendspayableagedmorethan1yearTheamountexceedsRMB50millionindividually
Significantotherpayablesagedmorethan1yearTheamountexceedsRMB30millionindividually
CashflowsfromsignificantinvestingactivitiesTheamountexceeds0.5%oftheamountoftotalassetsindividually
Significantnon-whollyownedsubsidiariesTheamountoftotalrevenueortotalassetsofsubsidiariesexceeds15%oftheamountoftotalconsolidatedrevenueortotalconsolidatedassets
SignificantjointventuresorassociatesJointventuresorassociatesinwhichthecarryingamountofalong-termequityinvestmentaccountsfor≥10%oftheamountoftotalconsolidatedassetsandinwhichtheinvestmentincomerecognizedundertheequitymethodaccountsfor≥10%oftheamountoftotalconsolidatedprofit
SignificantcommitmentsTheamountexceeds0.3%oftheamountoftotalassetsindividually,includingreorganization,mergersandacquisitions,andbuildingofconstructioninprogress,etc.

-19-

(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

6.BusinesscombinationsBusinesscombinationsareclassifiedintobusinesscombinationsinvolvingenterprisesundercommoncontrolandbusinesscombinationsnotinvolvingenterprisesundercommoncontrol.

6.1BusinesscombinationsinvolvingenterprisesundercommoncontrolAbusinesscombinationinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesareultimatelycontrolledbythesamepartyorpartiesbothbeforeandafterthecombination,andthatcontrolisnottransitory.Assetsandliabilitiesobtainedbythecombiningpartyshallbemeasuredattheirrespectivecarryingamountsasrecordedbythefinalcontrollingpartyintheconsolidatedfinancialstatementsatthedateofthecombination.Thedifferencebetweenshareofthecarryingamountofthenetassetsobtainedandthecarryingamountoftheconsiderationpaidforthecombination(ortotalparvalueofissuedshares)isadjustedtothesharepremiumincapitalreserve.Ifthesharepremiumisnotsufficienttoabsorbthedifference,anyexcessshallbeadjustedagainstsurplusreserveandretainedearningsinturn.Coststhataredirectlyattributabletothecombinationarechargedtoprofitorlossintheperiodinwhichtheyareincurred.Themergerdateisthedateonwhichthecombiningpartyactuallyobtainscontroloverthecombinedparty.

6.2BusinesscombinationsnotinvolvingenterprisesundercommoncontrolAbusinesscombinationnotinvolvingenterprisesundercommoncontrolisabusinesscombinationinwhichallofthecombiningenterprisesarenotultimatelycontrolledbythesamepartyorpartiesbeforeandafterthecombination.Thecostofcombinationistheaggregateofthefairvalues,attheacquisitiondate,oftheassetsgiven,liabilitiesincurredorassumed,andequitysecuritiesissuedbytheacquirer,inexchangeforcontroloftheacquiree.Theintermediaryexpenses(feesinrespectofauditing,legalservices,valuationandconsultancyservices,etc.)andothergeneralandadministrativeexpensesattributabletothebusinesscombinationarerecognizedinprofitorlossintheperiodswhentheyareincurred.Theacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesacquiredbytheacquirerinabusinesscombinationthatmeettherecognitioncriteriashallbemeasuredatfairvalueattheacquisitiondate.Theacquisitiondatereferstothedateonwhichtheacquireractuallyobtainscontrolovertheacquiree.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

6.Businesscombinations-continued

6.2Businesscombinationsnotinvolvingenterprisesundercommoncontrol-continuedWherethecostofcombinationexceedstheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,afterconsideringtheimpactofrelevantdeferredincometax,thedifferenceistreatedasanassetandrecognizedasgoodwill,whichismeasuredatcostoninitialrecognition.Wherethecostofcombinationislessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerreassessesthemeasurementofthefairvaluesoftheacquiree'sidentifiableassets,liabilitiesandcontingentliabilitiesandmeasurementofthecostofcombination.Ifafterthatreassessment,thecostofcombinationisstilllessthantheacquirer'sinterestinthefairvalueoftheacquiree'sidentifiablenetassets,theacquirerrecognizestheremainingdifferenceimmediatelyinprofitorlossforthecurrentperiod.

7.GoodwillGoodwillarisingfromabusinesscombinationismeasuredatcostlessaccumulatedimpairmentlosses,andispresentedseparatelyintheconsolidatedfinancialstatements.Goodwillshallbesubjecttoimpairmenttestingatleastattheendofeachyear.Theimpairmenttestingofgoodwillshallbeconductedincombinationwiththerelevantassetsgrouporassetsgroupcombination.Thatis,sincethepurchasedate,thebookvalueofgoodwillisapportionedtotheassetsgrouporcombinationofassetsgroupsthatcanbenefitfromthesynergisticeffectofbusinesscombinationinareasonableway.Iftherecoverableamountoftheassetsgrouporcombinationofassetsgroupscontainingapportionedgoodwillislowerthanitsbookvalue,thecorrespondingimpairmentlossisrecognized.Theamountofimpairmentlossshallfirstoffsetthebookvalueofgoodwillapportionedtotheassetsgrouporassetsgroupportfolio,andthenoffsetthebookvalueofotherassetsinproportiontotheproportionofthebookvalueofotherassetsotherthangoodwillintheassetsgrouporassetsgroupportfolio.Therecoverableamountisthehigherofthenetamountofthefairvalueoftheassetsminusthedisposalexpensesandthepresentvalueoftheestimatedfuturecashflowoftheassets.Theimpairmentlossofgoodwillshallbeincludedinthecurrentprofitandlosswhenitoccurs,andshallnotbereversedinfutureaccountingperiods.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

8.ConsolidatedfinancialstatementsTheconsolidationscopeofconsolidatedfinancialstatementsisdeterminedonthebasisofcontrol.Controlexistswhentheinvestorhaspowerovertheinvestee;isexposed,orhasrights,tovariablereturnsfromitsinvolvementwiththeinvestee;andhastheabilitytouseitspowerovertheinvesteetoaffectitsreturns.TheGroupreassesseswhetherornotitcontrolsaninvesteeiffactsandcircumstancesindicatethattherearechangesintheaboveelementsofthedefinitionofcontrol.ConsolidationofasubsidiarybeginswhentheGroupobtainscontroloverthesubsidiaryandceaseswhentheGrouplosescontrolofthesubsidiary.ForasubsidiaryalreadydisposedofbytheGroup,theoperatingresultsandcashflowsbeforethedateofdisposal(thedatewhencontrolislost)areincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement,asappropriate.Forsubsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesnotundercommoncontrol,whenpreparingtheconsolidatedfinancialstatementsofthecurrentperiod,thepurchasedsubsidiarywillbeincludedintheconsolidationscopeoftheCompanyfromtheacquisitiondateonthebasisofthefairvalueoftheidentifiableassetsandliabilitiesofthepurchasedsubsidiarydeterminedontheacquisitiondate.Theoperatingresultsandcashflowsfromtheacquisitiondate(thedatewhencontrolisobtained)areincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement,asappropriate.Nomatterwhenthebusinesscombinationoccursinthereportingperiod,subsidiariesacquiredthroughabusinesscombinationinvolvingenterprisesundercommoncontrol,whenpreparingtheconsolidatedfinancialstatementsofthecurrentperiod,thebookvalueofeachassetsandliabilityoftheconsolidatedsubsidiaryinthefinalcontroller'sfinancialstatementsistakenasthebasis,asiftheyhadbeenincludedinthescopeofconsolidationfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingparty.Theiroperatingresultsandcashflowsfromthedatewhentheyfirstcameunderthecommoncontroloftheultimatecontrollingpartyareincludedintheconsolidatedincomestatementandconsolidatedcashflowstatement,asappropriate.ThesignificantaccountingpoliciesandaccountingperiodsadoptedbythesubsidiariesaredeterminedbasedontheuniformaccountingpoliciesandaccountingperiodssetoutbytheCompany.WheretheaccountingpoliciesandaccountingperiodsadoptedbysubsidiariesareinconsistentwiththoseoftheCompany,appropriateadjustmentsaremadetothesubsidiaries'financialstatementsinaccordancewiththeaccountingpoliciesoftheCompany.Allsignificantintra-groupbalancesandtransactionsareeliminatedonconsolidation.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

8.Consolidatedfinancialstatements-continuedTheportionofsubsidiaries'equitythatisnotattributabletotheCompanyistreatedasnon-controllinginterestsandpresentedas"non-controllinginterests"intheconsolidatedbalancesheetunderthelineitemofshareholders'equity.Theportionofnetprofitsorlossesofsubsidiariesfortheperiodattributabletonon-controllinginterestsispresentedas"non-controllinginterests"intheconsolidatedincomestatementunderthelineitemof"netprofit".Theportionofcomprehensiveincomeofsubsidiariesfortheperiodattributabletonon-controllinginterestsispresentedas"attributabletonon-controllinginterests"intheconsolidatedincomestatementunderthelineitemof"totalcomprehensiveincome".Whentheamountoflossfortheperiodattributabletothenon-controllingshareholdersofasubsidiaryexceedsthenon-controllingshareholders'portionoftheopeningbalanceofowners'equityofthesubsidiary,theexcessamountisstillallocatedagainstnon-controllinginterests.Acquisitionofnon-controllinginterestsordisposalofinterestsinasubsidiarythatdoesnotresultinthelossofcontroloverthesubsidiaryisaccountedforasequitytransactions.ThecarryingamountsoftheCompany'sinterestsandnon-controllinginterestsareadjustedtoreflectthechangesintheirrelativeinterestsinthesubsidiary.Thedifferencebetweentheamountbywhichthenon-controllinginterestsareadjustedandthefairvalueoftheconsiderationpaidorreceivedisadjustedtocapitalreserve.Ifthecapitalreserveisnotsufficienttoabsorbthedifference,surplusreserveandretainedearningsshallbeoffsetinturn.Forthestepwiseacquisitionofequityinteresttillacquiringcontrolafterafewtransactionsandleadingtobusinesscombinationnotinvolvingenterprisesundercommoncontrol,itshallbedealtwithbasedonwhetheritbelongsto'packagedeal':ifitbelongsto'packagedeal',itwillbeaccountedforasatransactionstoacquirecontrol;ifitdoesnotbelongto'packagedeal',itwillbeaccountedforasatransactiontoacquirecontrolonacquisitiondate,andthefairvalueofacquiree'sharesheldbeforeacquisitiondatewillberevalued,andthedifferencebetweenfairvalueandcarryingamountwillberecognizedinprofitorlossofthecurrentperiod;ifacquiree'sharesheldbeforeacquisitiondateinvolvechangesinothercomprehensiveincomeandotherchangesinowners'equityunderequitymethod,itwillbetransferredtoincomeofacquisitiondate.WhentheGrouplosescontroloverasubsidiaryduetodisposalofequityinvestmentorotherreasons,anyretainedinterestisre-measuredatitsfairvalueatthedatewhencontrolislost.Thedifferencebetweenthesumoftheconsiderationobtainedfromthedisposalofequityandthefairvalueoftheremainingequity,lesstheshareofthenetassetsoftheparentcompanythatshouldbecontinuouslycalculatedfromthepurchasedatebasedontheoriginalshareholdingratio,isincludedintheinvestmentincomeofthecurrentperiodwhenthecontrolrightislost,andatthesametime,thegoodwillisoffset.Othercomprehensiveincomeassociatedwithinvestmentintheformersubsidiaryisreclassifiedtoinvestmentincomeintheperiodinwhichcontrolislost.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

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

9.JointarrangementsJointventurearrangementreferstoanarrangementjointlycontrolledbytwoormoreparticipants.ThejointventurearrangementoftheGrouphasthefollowingcharacteristics:(1)allparticipantsareboundbythearrangement;(2)Twoormoreparticipantsexercisejointcontroloverthearrangement.Noneoftheparticipantscancontrolthearrangementalone,andnoneoftheparticipantswithjointcontroloverthearrangementcanpreventotherparticipantsoracombinationofparticipantsfromcontrollingthearrangementalone.Jointcontrolreferstothecommoncontroloveranarrangementaccordingtorelevantagreements,andtherelevantactivitiesofthearrangementmustbeagreedbytheparticipantssharingthecontrolrightbeforemakingdecisions.Therearetwotypesofjointarrangements-jointoperationsandjointventures.Theclassificationisbasedontherightsandobligationsofthepartiesunderthejointventurearrangement,takingintoaccountfactorssuchasthestructure,legalformandcontractualtermsofthearrangement.Ajointoperationisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstotheassets,andobligationsfortheliabilities,relatingtothearrangement.Ajointventureisajointarrangementwherebythepartiesthathavejointcontrolofthearrangementhaverightstothenetassetsofthearrangement.TheGroupaccountsforinvestmentsinjointventuresusingequitymethod.RefertoNoteIV,

14.3.2Long-termequityinvestmentsaccountedforusingtheequitymethodfordetails.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

9.Jointarrangements-continuedWhenagroupentityundertakesitsactivitiesunderjointoperations,theGroupasajointoperatorrecognizesinrelationtoitsinterestinajointoperation:-itsassets,includingitsshareofanyassetsheldjointly;itsliabilities,includingitsshareofanyliabilitiesincurredjointly;itsrevenuefromthesaleofitsshareoftheoutputarisingfromthejointoperation;itsshareoftherevenuefromthesaleoftheoutputbythejointoperation,anditsexpenses,includingitsshareofanyexpensesincurredjointly.TheGroupaccountsfortheassets,liabilities,revenuesandexpensesrelatingtoitsinterestinajointoperationinaccordancewiththeaccountingstandardsapplicabletotheparticularassets,liabilities,revenuesandexpenses.

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

11.FinancialinstrumentsTheGrouprecognizesafinancialassetorafinancialliabilitywhenitbecomesapartytothecontractualprovisionsofthefinancialinstrument.Forfinancialassetspurchasedorsoldinregularways,assetstobereceivedandliabilitiestobeassumedarerecognizedonthetransactiondateorassetssoldarederecognizedonthatdate.Financialassetsandfinancialliabilitiesareinitiallymeasuredatfairvalue(themethodfordeterminingthefairvaluesofthefinancialassetsandfinancialliabilitiesissetoutinrelateddisclosuresunder"basisofaccountingandprincipleofmeasurement"innoteIV.4).Forfinancialassetsandfinancialliabilitiesatfairvaluethroughprofitorloss,transactioncostsareimmediatelyrecognizedinprofitorloss.Forotherfinancialassetsandfinancialliabilities,transactioncostsareincludedintheirinitialrecognizedamounts.Uponinitialrecognitionofcontractassets,billsreceivableandaccountsreceivablethatdonotcontainsignificantfinancingcomponentorwithoutconsideringthefinancingcomponentincludedinthecontractwithatermnotexceedingoneyearundertheAccountingStandardsforBusinessEnterprisesNo.14--Revenue(hereinafterreferredtoas"RevenueStandards"),theGroupadoptsthetransactionpriceasdefinedintheRevenueStandardsforinitialmeasurement.Whenthereisadifferencebetweenthefairvalueoffinancialassetsorfinancialliabilitiesinitiallyrecognizedandthetransactionprice,ifthefairvalueisnotdeterminedbasedonthequotationofthesameassetsorliabilitiesintheactivemarketorbasedonthevaluationtechnologyonlyusingobservablemarketdata,nogainsorlosseswillberecognizedwhenthefinancialassetsorfinancialliabilitiesareinitiallyrecognized.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continuedTheeffectiveinterestmethodisamethodofcalculatingtheamortizedcostofafinancialassetorafinancialliabilityandofallocatingtheinterestincomeorinterestexpensesovertherelevantaccountingperiods.Theeffectiveinterestrateistheratethatexactlydiscountsestimatedfuturecashflowsthroughtheexpectedlifeofthefinancialassetorfinancialliabilitytothebookvalueofthefinancialassetortotheamortizedcostofthefinancialliability.Whencalculatingtheeffectiveinterestrate,theGroupestimatesfuturecashflowsconsideringallcontractualtermsofthefinancialassetorfinancialliability(suchasrepaymentinadvance,extension,calloptionorothersimilaroptionsetc.)withoutconsideringtheexpectedcreditlosses.Theamortizedcostofafinancialassetorafinancialliabilityistheamountofafinancialassetorafinancialliabilityinitiallyrecognizednetofprincipalrepaid,plusorlessthecumulativeamortizedamountarisingfromamortizationofthedifferencebetweentheamountinitiallyrecognizedandtheamountatthematuritydateusingtheeffectiveinterestmethod,netofcumulativecreditlossallowance(onlyapplicabletofinancialassets).

11.1Classification,recognitionandmeasurementoffinancialassetsSubsequenttoinitialrecognition,theGroup'sfinancialassetsofvariouscategoriesaresubsequentlymeasuredatamortizedcost,atfairvaluethroughothercomprehensiveincomeoratfairvaluethroughprofitorloss.Ifthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,andthefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbycollectingcontractualcashflows,theGroupclassifiessuchfinancialassetasfinancialassetsatamortizedcost,whichincludecashandbankbalances,billsreceivable,accountsreceivable,otherreceivables,andlong-termreceivablesetc.Ifthecontractualtermsofthefinancialassetgiveriseonspecifieddatestocashflowsthataresolelypaymentsofprincipalandinterestontheprincipalamountoutstanding,andthefinancialassetisheldwithinabusinessmodelwhoseobjectiveisachievedbybothcollectingcontractualcashflowsandsellingthefinancialasset,theGroupclassifiessuchfinancialassetasfinancialassetsatFVTOCI.TheaccountsreceivableandbillsreceivableclassifiedasatFVTOCIuponacquisitionarepresentedunderreceivablesunderfinancing,whiletheremainingitemsduewithinoneyear(inclusive)uponacquisitionarepresentedunderothercurrentassets.Otherfinancialassetsofsuchtypearepresentedasotherdebtinvestmentsiftheyaredueafteroneyearsincetheacquisition,orpresentedundernon-currentassetsduewithinoneyeariftheyareduewithinoneyear(inclusive)sincethebalancesheetdate.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.1Classification,recognitionandmeasurementoffinancialassets-continuedOninitialrecognition,theGroupmayirrevocablydesignatenon-tradingequityinstruments,otherthancontingentconsiderationrecognizedthroughbusinesscombinationnotinvolvingenterprisesundercommoncontrol,asfinancialassetsatFVTOCIonanindividualbasis.SuchfinancialassetsatFVTOCIarepresentedasinvestmentsinotherequityinstruments.Afinancialassetisclassifiedasheldfortradingifoneofthefollowingconditionsissatisfied:

?Ithasbeenacquiredprincipallyforthepurposeofsellinginthenearterm;or?Oninitialrecognition,itispartofaportfolioofidentifiedfinancialinstrumentsthatthe

GroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-termprofit-taking;or?Relatedfinancialassetsarederivatives.However,thederivativesmeetingthedefinitionof

financialguaranteecontractandthosedesignatedaseffectivehedginginstrumentsareexcluded.Financialassetsmeasuredatfairvaluethroughprofitorloss(hereinafterreferredtoas"FVTPL")includethoseclassifiedasfinancialassetsatFVTPLandthosedesignatedasfinancialassetsatFVTPL:

?Financialassetsnotsatisfyingthecriteriaofclassificationasfinancialassetsatamortized

costandfinancialassetsatFVTOCIareclassifiedasfinancialassetsatFVTPL.?Uponinitialrecognition,theGroupmayirrevocablydesignatethefinancialassetsatFVTPLifdoingsoeliminatesorsignificantlyreducesaccountingmismatch.FinancialassetsatFVTPLotherthanderivativefinancialassetsarepresentedasfinancialassetsheldfortrading.Financialassetswithamaturityoveroneyearsincethebalancesheetdate(orwithoutafixedmaturity)andexpectedtobeheldforoveroneyeararepresentedunderothernon-currentfinancialassets.

11.1.1FinancialassetsmeasuredatamortizedcostFinancialassetsmeasuredatamortizedcostaresubsequentlymeasuredatamortizedcostusingtheeffectiveinterestmethod.Gainorlossarisingfromimpairmentorderecognitionisrecognizedinprofitorloss.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.1Classification,recognitionandmeasurementoffinancialassets-continued

11.1.1Financialassetsmeasuredatamortizedcost-continuedForfinancialassetsmeasuredatamortizedcost,theGrouprecognizesinterestincomeusingeffectiveinterestmethod.TheGroupcalculatesandrecognizesinterestincomethroughbookvalueoffinancialassetsmultiplyingeffectiveinterestrate,exceptforthefollowingcircumstances:

?Forpurchasedororiginatedcredit-impairedfinancialassets,theGroupcalculatesandrecognizestheinterestincomebasedonamortizedcostofthefinancialassetandtheeffectiveinterestratethroughcreditadjustmentsinceinitialrecognition.?Forfinancialassetsthathavenotsufferedfromcreditimpairmentbuthavebecomecredit

impairmentinsubsequentperiods,theGroupwillcalculateanddeterminetheirinterestincomeaccordingtotheamortizedcostandeffectiveinterestrateofthefinancialassetsinsubsequentperiods.Ifthefinancialinstrumentsnolongerhascreditimpairmentduetotheimprovementofitscreditriskinthesubsequentperiod,andthisimprovementcanberelatedtoaneventthatoccursaftertheapplicationoftheaboveprovisions,theGroupwillcalculateanddetermineinterestincomebymultiplyingtheactualinterestratebythebookvalueofthefinancialasset.

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

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.1Classification,recognitionandmeasurementoffinancialassets-continued

11.1.3FinancialassetsatFVTPLFinancialassetsatFVTPLaresubsequentlymeasuredatfairvalue.Gainorlossarisingfromchangesinfairvalueanddividendsandinterestrelatedtothefinancialassetsarerecognizedinprofitorloss.

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

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.2Impairmentoffinancialinstruments-continued

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

(1)Significantchangesininternalpriceindicatorsresultingfromchangesincreditrisk;

(2)Significantchangesintheratesorothertermsofanexistingfinancialinstrumentifthe

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

(3)Significantchangesintheexternalmarketindicatorsofcreditriskofthesamefinancial

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

(4)Anactualorexpectedsignificantchangeinthefinancialinstrument'sexternalcreditrating;

(5)Anactualorexpecteddecreaseintheinternalcreditratingforthedebtor;

(6)Adversechangesinbusiness,financialoreconomicconditionsthatareexpectedtocausea

significantdecreaseinthedebtor'sabilitytomeetitsdebtobligations;

(7)Anactualorexpectedsignificantchangeintheoperatingresultsofthedebtor;

(8)Significantincreaseincreditriskofotherfinancialinstrumentsissuedbythesamedebtor;

(9)Significantadversechangesintheregulatory,economic,ortechnologicalenvironmentof

thedebtor;

(10)Significantchangesinthevalueofthecollateralsorthequalityofguaranteesorcredit

enhancementsprovidedbythirdparties,whichareexpectedtoreducethedebtor'seconomicmotivestorepaywithinthetimelimitspecifiedincontractoraffecttheprobabilityofdefault;

(11)Significantchangeinthedebtor'seconomicmotivestorepaywithinthetimelimit

specifiedincontract;

(12)Expectedchangestoloancontract,includingtheexemptionorrevisionofcontractual

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

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.2Impairmentoffinancialinstruments-continued

11.2.1Significantincreaseofcreditrisk-continued

(13)Significantchangeintheexpectedperformanceandrepaymentofthedebtor;

(14)SignificantchangeinthemethodusedbytheGrouptomanagethecreditoffinancial

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

11.2.2Credit-impairedfinancialassetsWhenaneventorseveraleventsthatareexpectedtohaveadverseimpactonthefuturecashflowsofthefinancialassetshaveoccurred,thefinancialassetsbecomecredit-impaired.Theevidencesofcreditimpairmentoffinancialassetsincludethefollowingobservableinformation:

(1)Significantfinancialdifficultyoftheissuerordebtor.

(2)Abreachofcontractbythedebtor,suchasadefaultordelinquencyininterestorprincipal

paymentsetc..

(3)Thecreditor,foreconomicorlegalreasonsrelatingtothedebtor'sfinancialdifficulty,

grantingaconcessiontothedebtor.

(4)Itbecomesprobablethatthedebtorwillenterbankruptcyorotherfinancialreorganizations.

(5)Thedisappearanceofanactivemarketforthefinancialassetbecauseoffinancial

difficultiesoftheissuerorthedebtor.

(6)Purchaseororiginationofafinancialassetwithalargescaleofdiscount,whichreflects

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

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.2Impairmentoffinancialinstruments-continued

11.2.3DeterminationofexpectedcreditlossTheGroupdeterminesthecreditlossofleasesreceivablesonthebasisofsingleassets,anddeterminesthecreditlossofrelatedfinancialinstrumentsonthebasisofcombinationofcashatbankandonhand,billsreceivable,accountsreceivable,otherreceivables,long-termreceivables,etc.withimpairmentmatrix.TheGroupdividesfinancialinstrumentsintodifferentgroupsbasedoncommonriskcharacteristics.CommoncreditriskcharacteristicsadoptedbytheGroupinclude:

typeoffinancialinstruments,creditriskrating,typeofcollateral,initialrecognitiondate,remainingcontractperiod,industryofthedebtor,geographicallocationofthedebtor,valueofcollateralrelativetofinancialassets,etc.TheGroupdeterminestheECLofrelevantfinancialinstrumentsusingthefollowingmethods:

?Forfinancialassets,thecreditlossisthepresentvalueofthedifferencebetweenthecontractualcashflowsthatareduetotheGroupunderthecontractandthecashflowsthattheGroupexpectstoreceive.?Forfinancialguaranteecontracts(refertoNoteIV.11.4.1.3forthedetailofaccountingpolicies),thecreditlossisthepresentvalueoftheexpectedpaymentstoreimbursetheholderforthecreditlossincurredlessanyamountsthattheGroupexpectstoreceivefromtheholder,thedebtororanyotherparty.?Forfinancialassetscredit-impairedatthebalancesheetdate,butnotpurchasedororiginatedcredit-impaired,thecreditlossisthedifferencebetweenthebookvalueofthefinancialassetsandthepresentvalueofestimatedfuturecashflowsdiscountedattheoriginaleffectiveinterestrate.ThefactorsreflectedbytheGroup'smeasurementofECLoffinancialinstrumentsinclude:

unbiasedprobabilityweightedaverageamountrecognizedbyassessingaseriesofpossibleresults;timevalueofmoney;reasonableandsupportableinformationrelatedtohistoricalevents,currentconditionandforecastoffutureeconomicpositionthatisavailablewithoutunduecostoreffortatthebalancesheetdate.

11.2.4Write-offoffinancialassetsWhentheGroupnolongerreasonablyexpectsthatthecontractualcashflowsoffinancialassetscanbecollectedinaggregateorinpart,theGroupwilldirectlywritedownthebookvalueofthefinancialassets,whichconstitutesderecognitionofrelevantfinancialassets.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

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

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

liabilitiesisthecarryingamountoffinancialassetstransferredwithcontinuinginvolvementlessfairvalueoftheGroup'sretainedrights(iftheGroupretainsrelevantrightsupontransferoffinancialassets)withadditionoffairvalueofobligationsassumedbytheGroup(iftheGroupassumesrelevantobligationsupontransferoffinancialassets).Accordingly,thefairvalueofrelevantrightsandobligationsshallbemeasuredonanindividualbasis.Forthetransferofafinancialassetinitsentiretythatsatisfiesthederecognitioncriteria,thedifferencebetween(1)thecarryingamountofthefinancialassettransferredand(2)thesumoftheconsiderationreceivedfromthetransferandanycumulativegainorlossthathasbeenrecognizedinothercomprehensiveincome,isrecognizedinprofitorloss.Wherethetransferredassetsarenon-tradingequityinstrumentinvestmentsdesignatedasatFVTOCI,cumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredoutandincludedinretainedearnings.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.3Transferoffinancialassets-continuedIfapartofthetransferredfinancialassetqualifiesforderecognition,theoverallcarryingamountofthefinancialassetpriortotransferisallocatedbetweenthepartthatcontinuestoberecognizedandthepartthatisderecognized,basedontherespectivefairvalueofthosepartsatthedateoftransfer.Thedifferencebetween(1)thecarryingamountallocatedtothepartderecognizedonthedateofderecognition;and(2)thesumoftheconsiderationreceivedforthepartderecognizedandanycumulativegainorlossallocatedtothepartderecognizedwhichhasbeenpreviouslyrecognizedinothercomprehensiveincome,isrecognizedinprofitorloss.Wherethetransferredassetsarenon-tradingequityinstrumentinvestmentsdesignatedasatFVTOCI,cumulativegainsorlossespreviouslyrecognizedinothercomprehensiveincomearetransferredoutandincludedinretainedearnings.Foratransferofafinancialassetinitsentiretythatdoesnotsatisfythederecognitioncriteria,theGroupcontinuestorecognizethetransferredfinancialassetinitsentirety.Theconsiderationreceivedfromtransferofassetsisrecognizedasafinancialliabilityuponreceipt.

11.4ClassificationoffinancialliabilitiesandequityinstrumentsFinancialinstrumentsissuedbytheGrouportheircomponentsareclassifiedintofinancialliabilitiesorequityinstrumentsonthebasisofthesubstanceofthecontractualarrangementsandtheeconomicnaturenotonlythelegalform,togetherwiththedefinitionoffinancialliabilityandequityinstrumentoninitialrecognition.

11.4.1Classification,recognitionandmeasurementoffinancialliabilitiesOninitialrecognition,financialliabilitiesareclassifiedintofinancialliabilitiesatFVTPLandotherfinancialliabilities.

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

?Ithasbeenacquiredprincipallyforthepurposeofrepurchasinginthenearterm;or?Oninitialrecognition,itispartofaportfolioofidentifiedfinancialinstrumentsthatthe

GroupmanagestogetherandthereisobjectiveevidencethattheGrouphasarecentactualpatternofshort-termprofit-taking;or?Itisaderivativethatisnotafinancialguaranteecontractordesignatedandeffectiveasa

hedginginstrument.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.4Classificationoffinancialliabilitiesandequityinstruments-continued

11.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued

11.4.1.1FinancialliabilitiesatFVTPL-continuedAfinancialliabilitymaybedesignatedasatFVTPLoninitialrecognitionwhenoneofthefollowingconditionsissatisfied:(i)Suchdesignationeliminatesorsignificantlyreducesaccountingmismatch;or(ii)TheGroupmakesmanagementandperformanceevaluationonafairvaluebasis,inaccordancewiththeGroup'sformallydocumentedriskmanagementorinvestmentstrategy,andreportstokeymanagementpersonnelonthatbasis.(iii)Thequalifiedhybridfinancialinstrumentcombinesfinancialassetwithembeddedderivatives.Held-for-tradingfinancialliabilitiesaresubsequentlymeasuredatfairvalue.Anygainsorlossesarisingfromchangesinfairvalueandanydividendsorinterestexpensespaidonthefinancialliabilitiesarerecognizedinprofitorloss.ForafinancialliabilitydesignatedasatFVTPL,theamountofchangesinfairvalueofthefinancialliabilitythatareattributabletochangesinthecreditriskofthatliabilityshallbepresentedinothercomprehensiveincome,whileotherchangesinfairvalueareincludedinprofitorlossforthecurrentperiod.Uponthederecognitionofsuchfinancialliability,theaccumulatedamountofchangesinfairvaluethatareattributabletochangesinthecreditriskofthatliability,whichwasrecognizedinothercomprehensiveincome,istransferredtoretainedearnings.Anydividendorinterestexpenseonthefinancialliabilitiesisrecognizedinprofitorloss.Iftheaccountingtreatmentfortheimpactofthechangeincreditriskofsuchfinancialliabilityintheabovewayswouldcreateorenlargeanaccountingmismatchinprofitorloss,theGroupshallpresentallgainsorlossesonthatliability(includingtheeffectsofchangesinthecreditriskofthatliability)inprofitorlossfortheperiod.ForfinancialliabilitiesarisingfromcontingentconsiderationrecognizedbytheGroupastheacquirerinthebusinesscombinationnotinvolvingenterprisesundercommoncontrol,theGroupmeasuressuchfinancialliabilitiesatfairvaluethroughprofitorloss,andincludesthechangesinthefinancialliabilitiesinprofitorlossfortheperiod.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.4Classificationoffinancialliabilitiesandequityinstruments-continued

11.4.1Classification,recognitionandmeasurementoffinancialliabilities-continued

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

11.4.1.3FinancialguaranteecontractsAfinancialguaranteecontractisacontractthatrequirestheissuertomakespecifiedpaymentstoreimbursetheholderofthecontractforalossitincursbecauseaspecifieddebtorfailstomakepaymentwhendueinaccordancewiththeoriginalormodifiedtermsofadebtinstrument.Subsequenttoinitialrecognition,financialguaranteecontractsthatarenotdesignatedasfinancialliabilitiesatfairvaluethroughprofitorlossorfinancialliabilitiesarisingfromtransferoffinancialassetsthatdonotmeetthederecognitioncriteriaorthosearisingfromcontinuinginvolvementinthetransferredfinancialassets,aremeasuredatthehigherofamountoflossprovision;andtheamountinitiallyrecognizedlesscumulativeamortizationamountdeterminedbasedontherevenuestandards.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

11.4Classificationoffinancialliabilitiesandequityinstruments-continued

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

11.4.3EquityinstrumentsAnequityinstrumentisanycontractthatevidencesaresidualinterestintheassetsoftheGroupafterdeductingallofitsliabilities.Equityinstrumentsissued(includingrefinanced),repurchased,soldandcancelledbytheGrouparerecognizedaschangesinequity.TheGroup'sissuanceofequityinstrumentsisrecordedintheowner'sequityattheactualissueprice,andtherelevanttransactioncostsaredeductedfromtheowner'sequity(capitalreserve).Ifthecapitalreserveisinsufficienttooffset,thesurplusreserveandretainedearningsareoffsetinturn.TheconsiderationandtransactioncostspaidforrepurchasingtheCompany'sequityinstrumentsreducetheowner'sequity.TheGrouprecognizesthedistributiontoholdersoftheequityinstrumentsasdistributionofprofits,anddividendspaiddonotaffecttotalamountofshareholders'equity.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

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

(1)theeconomiccharacteristicsandrisksoftheembeddedderivativearenotcloselyrelatedto

thoseofthehostcontract;

(2)aseparateinstrumentwiththesametermsastheembeddedderivativewouldmeetthe

definitionofaderivative;

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

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

11.7CompoundinstrumentsForconvertiblebondsissuedbytheGroupthatcontainbothliabilitiesandconversionoptionthatmayconverttheliabilitiestoitsownequityinstrument,uponinitialrecognition,thebondsaresplitintoliabilitiesandconversionoptionwhichareseparatelyrecognized.Therein,theconversionoptionthatexchangesafixedamountofcashorotherfinancialassetsforafixedamountofequityinstrumentsisaccountedforasanequityinstrument.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

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

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

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

11.Financialinstruments-continued

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

12.Receivables

12.1DeterminationandaccountingmethodsforexpectedcreditlossesofreceivablesTheGroupassessesthecreditriskofreceivableswithsignificantlydifferentcreditrisksonanindividualbasis,anddeterminethecreditlossesofreceivablesonaportfoliobasisusinganimpairmentmatrixforotherreceivables.Theamountofincreaseinorreversalofallowanceforexpectedcreditlossesonreceivablesisincludedinprofitorlossfortheperiodascreditlossesorgains.

12.2Categoriesofportfoliosforwhichprovisionforbaddebtsisassessedonaportfoliobasis

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

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

12.Receivables-continued

12.2Categoriesofportfoliosforwhichprovisionforbaddebtsisassessedonaportfoliobasis

accordingtocreditriskcharacteristicsandthebasisfordetermination-continuedTheGroupmakesinternalcreditratingsoncustomersanddeterminesexpectedlossrateofreceivables.Basisfordeterminingratingsandtheexpectedlossratesareasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Internalcreditrating

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

12.3Determinationcriteriaforprovisionforbaddebtsonanindividualbasis

InternalcreditratingsBasistodeterminetheprovisionforbaddebtsonanindividualbasisExpectedaveragelossratio(%)
DThereisevidenceshowingthatthereceivablesfromcustomersareimpaired,orthatthecustomersareexperiencingsignificantfinancialdifficultiesandthusthereceivableswillbeirrecoverableintheforeseeablefuture.50.00-100.00

13.Inventories

13.1Categoriesofinventories,measurementmethodofcostofinventories,inventorycount

system,amortizationmethodoflow-valueconsumablesandpackagingmaterials

13.1.1CategoriesofinventoriesTheGroup'sinventoriesmainlyincluderawmaterials,merchandiseandothers.Inventoriesareinitiallymeasuredatcost.Costofinventoriescomprisesallcostsofpurchase,costsofconversionandotherexpendituresincurredinbringingtheinventoriestotheirpresentlocationandcondition.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

13.Inventories-continued

13.1Categoriesofinventories,measurementmethodofcostofinventories,inventorycount

system,amortizationmethodoflow-valueconsumablesandpackagingmaterials-continued

13.1.2MeasurementmethodofcostofinventoriesCostofinventoriesrecognisediscalculatedusingthefirst-in-first-outandweightedaveragemethod.

13.1.3InventorycountsystemTheperpetualinventorysystemisperpetualinventorysystem.

13.1.4Amortizationmethodforlowcostandlow-valueconsumablesitemsandpackaging

materialsPackagingmaterialsandlowcostandshort-livedconsumableitemsareamortizedusingtheimmediatewrite-offmethod.

13.2RecognitioncriteriaandprovisionmethodfordeclineinvalueofinventoriesAtthebalancesheetdate,inventoriesaremeasuredatthelowerofcostandnetrealizablevalue.Ifthecostofinventoriesishigherthanthenetrealizablevalue,aprovisionfordeclineinvalueofinventoriesismade.Netrealizablevalueistheestimatedsellingpriceintheordinarycourseofbusinesslesstheestimatedcostsofcompletion,theestimatedcostsnecessarytomakethesaleandrelevanttaxes.Netrealizablevalueisdeterminedonthebasisofclearevidenceobtained,aftertakingintoconsiderationthepurposesofinventoriesbeingheldandeffectofpostbalancesheetevents.Provisionfordeclineinvalueofinventoriesismadebasedontheexcessofcostofinventoryoveritsnetrealizablevalueonanitem-by-itembasis.Aftertheprovisionfordeclineinvalueofinventoriesismade,ifthecircumstancesthatpreviouslycausedinventoriestobewrittendownbelowcostnolongerexistsothatthenetrealizablevalueofinventoriesishigherthantheircost,theoriginalprovisionfordeclineinvalueisreversedandthereversalisincludedinprofitorlossfortheperiod.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

14.Long-termequityinvestments

14.1BasisfordeterminingjointcontrolandsignificantinfluenceoverinvesteeControlmeansthattheinvestorhasthepowerovertheinvestee,enjoysvariablereturnsbyparticipatingintherelevantactivitiesoftheinvestee,andhastheabilitytousethepowerovertheinvesteetoaffectitsreturnamount.Jointcontrolreferstothecommoncontroloveranarrangementaccordingtorelevantagreements,andtherelevantactivitiesofthearrangementmustbeagreedbytheparticipantssharingthecontrolrightbeforemakingdecisions.Significantinfluencereferstohavingtherighttoparticipateinthedecision-makingoftheinvestee'sfinancialandoperatingpolicies,butnotbeingabletocontrolorjointlycontroltheformulationofthesepolicieswithotherparties.Whendeterminingwhetheritispossibletocontrolorexertsignificantinfluenceontheinvestee,theconvertiblecorporatebonds,executablewarrantsandotherpotentialvotingrightsoftheinvesteeheldbytheinvestorandotherpartieshavebeenconsidered.

14.2DeterminationofinitialinvestmentcostForalong-termequityinvestmentacquiredthroughbusinesscombinationinvolvingenterprisesundercommoncontrol,shareofcarryingamountofowners'equityoftheacquireeintheconsolidatedfinancialstatementsofultimatecontrollingpartyisrecognizedasinitialinvestmentcostoflong-termequityinvestmentatthedateofcombination.Thedifferencebetweeninitialinvestmentcostoflong-termequityinvestmentandcashpaid,non-cashassetstransferredandcarryingamountofliabilitiesassumed,isadjustedincapitalreserve.Ifthebalanceofcapitalreserveisnotsufficienttoabsorbthedifference,surplusreserveandretainedearningsshallbeoffsetinturn.Iftheconsiderationofthecombinationissatisfiedbytheissueofequitysecurities,theinitialinvestmentcostofthelong-termequityinvestmentistheshareofcarryingamountofowners'equityoftheacquireeintheconsolidatedfinancialstatementsofultimatecontrollingpartyatthedateofcombination.Theaggregatefacevalueofthesharesissuedisaccountedforassharecapital.Thedifferencebetweentheinitialinvestmentcostandtheaggregatefacevalueofthesharesissuedisadjustedtocapitalreserve.Ifthebalanceofcapitalreserveisnotsufficienttoabsorbthedifference,surplusreserveandretainedearningsshallbeoffsetinturn.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

14.Long-termequityinvestments-continued

14.2Determinationofinitialinvestmentcost-continuedForalong-termequityinvestmentacquiredthroughbusinesscombinationnotinvolvingenterprisesundercommoncontrol,theinitialinvestmentcostofthelong-termequityinvestmentacquiredisthecostofacquisition.Theexpensesincurredbytheacquirerinrespectofauditing,legalservices,valuationandconsultancyservicesandotherassociatedgeneralandadministrativeexpensesattributabletothebusinesscombinationarerecognizedinprofitorlosswhentheyareincurred.Thelong-termequityinvestmentacquiredotherwisethanthroughabusinesscombinationisinitiallymeasuredatitscost.Whentheentityisabletoexercisesignificantinfluenceorjointcontrol(butnotcontrol)overaninvesteeduetoadditionalinvestment,thecostoflong-termequityinvestmentsisthesumofthefairvalueofpreviously-heldequityinvestmentsdeterminedinaccordancewithAccountingStandardsforBusinessEnterprisesNo.22--FinancialInstruments:

RecognitionandMeasurement(ASBENo.22)andtheadditionalinvestmentcost.

14.3Subsequentmeasurementandrecognitionofprofitorloss

14.3.1Long-termequityinvestmentsaccountedforusingthecostmethodLong-termequityinvestmentsinsubsidiariesareaccountedforusingthecostmethodinCompany'sseparatefinancialstatements.AsubsidiaryisaninvesteethatiscontrolledbytheGroup.Underthecostmethod,along-termequityinvestmentismeasuredatinitialinvestmentcost.Whenadditionalinvestmentismadeortheinvestmentisrecouped,thecostofthelong-termequityinvestmentisadjustedaccordingly.Investmentincomeisrecognizedintheperiodinaccordancewiththeattributableshareofcashdividendsorprofitdistributionsdeclaredbytheinvestee.

14.3.2Long-termequityinvestmentsaccountedforusingtheequitymethodExceptforinvestmentsinassociatesandjointventuresclassifiedasheld-for-salepartlyorwholly,theGroupaccountsforinvestmentinassociatesandjointventuresusingtheequitymethod.AnassociateisanentityoverwhichtheGrouphassignificantinfluenceandajointventureisajointarrangementwherebytheGrouponlyhasrightstothenetassetsofthearrangement.Undertheequitymethod,wheretheinitialinvestmentcostofalong-termequityinvestmentexceedstheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,noadjustmentismadetotheinitialinvestmentcost.WheretheinitialinvestmentcostislessthantheGroup'sshareofthefairvalueoftheinvestee'sidentifiablenetassetsatthetimeofacquisition,thedifferenceisrecognizedinprofitorlossfortheperiod,andthecostofthelong-termequityinvestmentisadjustedaccordingly.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

14.Long-termequityinvestments-continued

14.3Subsequentmeasurementandrecognitionofprofitorloss-continued

14.3.2Long-termequityinvestmentsaccountedforusingtheequitymethod-continuedUndertheequitymethod,theGrouprecognizesitsshareofthenetprofitorlossandothercomprehensiveincomeoftheinvesteefortheperiodasinvestmentincomeandothercomprehensiveincomefortheperiod.Meanwhile,thecarryingamountoflong-termequityinvestmentisadjusted;thecarryingamountoflong-termequityinvestmentisdecreasedinaccordancewithitsshareoftheinvestee'sdeclaredprofitorcashdividends;otherchangesinowners'equityoftheinvesteeotherthannetprofitorloss,othercomprehensiveincomedandprofitdistributionarecorrespondinglyadjustedtothecarryingamountofthelong-termequityinvestment,andrecognizedincapitalreserve.TheGrouprecognizesitsshareoftheinvestee'snetprofitorlossbasedonthefairvalueoftheinvestee'sindividualidentifiableassets,etc.attheacquisitiondateaftermakingadjustments.Whentheinvestee'saccountingpoliciesandaccountingperiodareinconsistentwiththoseoftheGroup,theGrouprecognizesinvestmentincomeandothercomprehensiveincomeaftermakingappropriateadjustmentstoconformtotheGroup'saccountingpoliciesandaccountingperiod.However,unrealizedgainsorlossesresultingfromtheGroup'stransactionswithitsassociatesandjointventuresandassetsinvestedorsold,whichdonotconstituteabusiness,areeliminatedbasedontheproportionattributabletotheGroupandtheninvestmentgainsorlossesarerecognized.However,unrealizedlossesresultingfromtheGroup'stransactionswithitsassociatesandjointventureswhichrepresentimpairmentlossesonthetransferredassetsarenoteliminated.Whenrecognizingthenetlossoftheinvesteethatshouldbeshared,thebookvalueofthelong-termequityinvestmentsandotherlong-termintereststhatsubstantiallyconstitutethenetinvestmentintheinvesteeshouldbewrittendowntozero.Inaddition,iftheGrouphasincurredobligationstoassumeadditionallosses,aprovisionisrecognizedaccordingtotheobligationexpected,andrecordedintheinvestmentlossfortheperiod.Wherenetprofitsaresubsequentlymadebytheinvestee,theGroupresumesrecognizingitsshareofthoseprofitsonlyafteritsshareoftheprofitsexceedstheshareoflossespreviouslynotrecognized.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

14.Long-termequityinvestments-continued

14.4Disposaloflong-termequityinvestmentsOndisposalofalong-termequityinvestment,thedifferencebetweentheproceedsactuallyreceivedandreceivableandthecarryingamountisrecognizedinprofitorlossfortheperiod.Forlong-termequityinvestmentsaccountedforusingtheequitymethod,iftheremaininginterestafterdisposalisstillaccountedforusingtheequitymethod,othercomprehensiveincomepreviouslyrecognizedusingtheequitymethodisaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;owners'equityrecognizedduetootherchangesinowners'equityoftheinvestee(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.Forlong-termequityinvestmentsaccountedforusingthecostmethod,iftheremaininginterestafterdisposalisstillaccountedforusingthecostmethod,othercomprehensiveincomepreviouslyrecognizedusingtheequitymethodorinaccordancewiththestandardsfortherecognitionandmeasurementoffinancialinstrumentsbeforeobtainingthecontrolovertheinvestee,isaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilities,andtransferredtoprofitorlossfortheperiodonaproratabasis;otherchangesinowners'equityintheinvestee'snetassetsrecognizedundertheequitymethod(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiodonaproratabasis.WheretheGrouplosescontrolovertheinvesteeduetodisposalofpartofshares,andinpreparingtheseparatefinancialstatements,remainingsharesafterdisposalcanhavejointcontrolorsignificantinfluenceovertheinvestee,theequitymethodshallbeadoptedtoadjusttheremainingsharesastheyareaccountedforunderequitymethodsincetheacquisitiondate.Ifremainingsharesafterdisposalcannothavejointcontrolorsignificantinfluenceovertheinvestee,theyareaccountedforinaccordancewiththestandardsforrecognitionandmeasurementoffinancialinstruments,andthedifferencebetweenfairvalueondateoflosingcontrolandcarryingamountisrecognizedinprofitorlossfortheperiod.Othercomprehensiveincomerecognizedusingtheequitymethodorinaccordancewiththestandardsfortherecognitionandmeasurementoffinancialinstrumentsbeforelosingcontrolovertheinvestee,isaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilitieswhenthecontrolovertheinvesteeislost;otherchangesinowners'equityintheinvestee'snetassetsrecognizedundertheequitymethod(otherthannetprofitorloss,othercomprehensiveincomeandprofitdistribution)istransferredtoprofitorlossfortheperiod.Whereremainingsharesafterdisposalareaccountedforunderequitymethod,othercomprehensiveincomeandotherowners'equityaretransferredonaproratabasis.Whereremainingsharesafterdisposalareaccountedforinaccordancewiththestandardsforrecognitionandmeasurementoffinancialinstruments,othercomprehensiveincomeandotherowners'equityarealltransferred.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

14.Long-termequityinvestments-continued

14.4Disposaloflong-termequityinvestments-continuedWheretheGrouplosesjointcontrolorsignificantinfluenceovertheinvesteeafterpartdisposalofshares,remainingsharesafterdisposalareaccountedforinaccordancewiththestandardsforrecognitionandmeasurementoffinancialinstruments,andthedifferencebetweenfairvalueatthedateoflosingjointcontrolorsignificantinfluenceandcarryingamountisrecognizedinprofitorlossfortheperiod.Othercomprehensiveincomepreviouslyrecognizedundertheequitymethod,isaccountedforonthesamebasisaswouldhavebeenrequirediftheinvesteehaddirectlydisposedofrelatedassetsorliabilitieswhentheequitymethodisnotadopted,andotherchangesinowners'equityotherthannetprofitorloss,othercomprehensiveincomeandprofitdistributionaretransferredtoinvestmentincomefortheperiodwhentheequitymethodisnotadopted.TheGroupdisposesofitsequityinvestmentinsubsidiariesthroughmultipletransactionsstepbystepuntilitlosescontroloverthesubsidiaries.Ifthesetransactionsbelongto"packagedeal",alltransactionsaredeemedasonetransactionondisposalofequityinvestmentinsubsidiaries,andthedifferencebetweentheamountofdisposalandcarryingamountoflong-termequityinvestmentisrecognizedasothercomprehensiveincomebeforethelossofcontrol,andtransferredtoprofitorlossfortheperiodwhenthecontrolislost.

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

CHINAMERCHANTSPORTGROUPCO.,LTD.

Category

CategoryDepreciationlife(year)Residualvaluerate(%)Annualdepreciationrate(%)
Landuserights21.25-50.00-2.00-4.71
Buildingsandstructures10.00-43.175.002.20-9.50

Aninvestmentpropertyisderecognizedupondisposalorwhentheinvestmentpropertyispermanentlywithdrawnfromuseanditisestimatedthatnoeconomicbenefitscanbeobtainedfromitsdisposal,theinvestmentpropertiesisderecognized.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

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

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

CHINAMERCHANTSPORTGROUPCO.,LTD.

Category

CategoryDepreciationlife(year)Residualvaluerate(%)Annualdepreciationrate(%)
Portandterminalfacilities5-505.001.90-19.00
Buildingsandstructures5-305.003.17-19.00
Machineryandequipment,furnitureandfixtureandotherequipment3-205.004.75-31.67
Motorvehiclesandcargoships5-255.003.80-19.00

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

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

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

(1)Thephysicalconstruction(includinginstallation)offixedassetshasbeenfullyor

substantiallycompleted;

(2)Thetrialproductionortrialoperationhasbeencarriedoutandtheresultsofwhich

indicatethattheassetiscapableofnormaloperationorproducingqualifiedproductsonastablebasis,ortheresultsofwhichindicatethatitiscapableofnormalfunctioningoroperation;

(3)Thefixedassetsandintangibleassetsacquiredandconstructedhavemetthedesignor

contractualrequirementsorarebasicallyincompliancewiththedesignorcontractualrequirements.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

18.Intangibleassets

18.1Usefullifeandthebasisfordetermination,estimates,amortizationmethodorreview

proceduresIntangibleassetsincludelanduserights,terminaloperatingrights,dataresourcesandothers.Anintangibleassetismeasuredinitiallyatcost.Uponbeingrestructuredintoastockcompany,theintangibleassetsinitiallycontributedbythestate-ownedshareholdersarerecognizedbasedonthevaluationamountsconfirmedbythestate-ownedassetsadministrationdepartment.Exceptforterminaloperatingrights,whenanintangibleassetwithafiniteusefullifeisavailableforuse,itsoriginalcostminustheexpectednetresidualvalueandtheaccumulatedamountofimpairmentprovisionisamortizedoveritsestimatedusefullifebyusingstraight-linemethod.Theterminaloperatingrightsundertheoutputmethodareamortizedoverperiodsaccordingtotheratiooftheestimatedminimumguaranteedthroughputtotheestimatedminimumguaranteedtotalthroughputduringtheoperationperiod.Whentheestimatedminimumguaranteedthroughputcannotbemeasuredreliably,thestraight-linemethodwillbeusedforamortization.Anintangibleassetwithindefiniteusefullifewillnotbeamortized.Theamortizationmethod,usefullifeandestimatednetresidualvaluerateofeachcategoryofintangibleassetsareasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.Category

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

Foranintangibleassetwithafiniteusefullife,theGroupreviewstheusefullifeandamortizationmethodattheendoftheyear,andmakesadjustmentswhennecessary.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

18.Intangibleassets-continued

18.2ScopeofR&DexpenditureandmethodforaccountingtreatmentExpenditureduringtheresearchphaseisrecognizedinprofitorlossfortheperiodinwhichitisincurred.Expenditureduringthedevelopmentphasethatmeetsallofthefollowingconditionsatthesametimeisrecognizedasintangibleasset.Expenditureduringdevelopmentphasethatdoesnotmeetthefollowingconditionsisrecognizedinprofitorlossfortheperiod:

(1)itistechnicallyfeasibletocompletetheintangibleassetsothatitwillbeavailableforuse

orsale.

(2)theGrouphastheintentiontocompletetheintangibleassetanduseorsellit.

(3)theGroupcandemonstratethewaysinwhichtheintangibleassetwillgenerateeconomic

benefits,includingtheevidenceoftheexistenceofamarketfortheoutputoftheintangibleassetortheintangibleassetitselfor,ifitistobeusedinternally,theusefulnessoftheintangibleasset.

(4)theavailabilityofadequatetechnical,financialandotherresourcestocompletethe

developmentandtheabilitytouseorselltheintangibleasset.

(5)theexpenditureattributabletotheintangibleassetduringitsdevelopmentphasecanbe

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

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

19.Long-termdeferredexpensesLong-termdeferredexpensesrefertovariousexpensesthathavebeenincurredbutshouldbeborneinthecurrentandsubsequentperiodswithanapportionmentperiodofmorethanoneyear.Long-termdeferredexpensesareamortizedusingthestraight-linemethodovertheexpectedperiodsinwhichbenefitsarederived.

20.Impairmentofnon-financialassetsotherthangoodwillOneachbalancesheetdate,theGroupcheckswhetherthereisanysignofpossibleimpairmentoflong-termequityinvestments,investmentpropertiesmeasuredbycostmodel,fixedassets,constructioninprogress,right-of-useassets,long-termdeferredexpenses,andintangibleassetswhoseservicelifeisdetermined.Ifthereisanyindicationthatsuchassetsmaybeimpaired,recoverableamountsareestimatedforsuchassets.Intangibleassetswithindefiniteusefullifeandintangibleassetsnotyetavailableforusearetestedforimpairmentannually,irrespectiveofwhetherthereisanyindicationthattheassetsmaybeimpaired.Recoverableamountisestimatedonanindividualbasis.Ifitisnotpracticaltoestimatetherecoverableamountofanindividualasset,therecoverableamountoftheassetgrouptowhichtheassetbelongswillbeestimated.Therecoverableamountofanassetorassetsgroupisthehigherofitsfairvaluelesscostsofdisposalandthepresentvalueofthefuturecashflowsexpectedtobederivedfromtheasset.Thepresentvalueoftheestimatedfuturecashflowoftheassetsisdeterminedaccordingtotheestimatedfuturecashflowgeneratedduringthecontinuoususeandfinaldisposaloftheassets,andtheamountdiscountedwhichisdeterminedbyselectinganappropriatepretaxdiscountrate.Iftherecoverableamountofanassetislessthanitscarryingamount,thedeficitisaccountedforasanimpairmentlossesandisrecognizedinprofitorloss.Oncetheimpairmentlossesofabove-mentionedassetsisrecognized,itshallnotbereversedinanysubsequentperiod.Whendeterminingtheimpairmentlossesofassetsrelatedtocontractcosts,firstdeterminetheimpairmentlossesofotherassetsrelatedtocontractsthatarerecognizedinaccordancewithotherrelevantaccountingstandardsforbusinessenterprises;Then,ifthebookvalueoftheassetsrelatedtothecontractcostsishigherthanthedifferencebetweenthefollowingtwoitems,theexcesspartoftheprovisionforimpairmentshallberecognizedasimpairmentlosses:(i)theGroup'sexpectedremainingconsiderationforthetransferofgoodsorservicesrelatedtotheassets;(ii)Estimatethecosttobeincurredforthetransferoftherelevantgoodsorservices.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

20.Impairmentofnon-financialassetsotherthangoodwill-continuedExceptfortheimpairmentlossesrelatedtothecontractcosts,oncetheaboveimpairmentlossesisrecognized,itwillnotbereversedinfutureaccountingperiods.Aftertheprovisionforimpairmentofassetsrelatedtocontractcostshasbeenmade,ifthefactorsofimpairmentinpreviousperiodshavechangedresultingintheabovetwodifferencesarehigherthanthebookvalueoftheassets,theprovisionforimpairmentoftheassetsthathasbeenmadeisreversedandincludedinthecurrentprofitsandlosses,butthebookvalueoftheassetsafterreversaldoesnotexceedthebookvalueoftheassetsonthereversaldateassumingthatnoprovisionforimpairmentismade.

21.ProvisionsProvisionsarerecognizedwhentheGrouphasapresentobligationrelatedtoacontingency,itisprobableresultinanoutflowofeconomicbenefitstosettletheobligation,andtheamountoftheobligationcanbemeasuredreliably.Theamountrecognizedasaprovisionisthebestestimateoftheconsiderationrequiredtosettlethepresentobligationatthebalancesheetdate,takingintoaccountfactorspertainingtoacontingencysuchastherisks,uncertaintiesandtimevalueofmoney.Wheretheeffectofthetimevalueofmoneyismaterial,theamountoftheprovisionisdeterminedbydiscountingtherelatedfuturecashoutflows.Ifallorpartoftheexpensesrequiredtosettletheestimatedliabilitiesareexpectedtobecompensatedbyathirdparty,thecompensationamountwillbeseparatelyrecognizedasassetswhenitisbasicallydeterminedthatitcanbereceived,andtherecognizedcompensationamountwillnotexceedthebookvalueoftheestimatedliabilities.

22.Employeebenefits

22.1Short-termemployeebenefitsShort-termbenefitsrefertotheemployeebenefitsthattheGroupisrequiredtomakefullpaymentswithin12monthsaftertheannualreportingperiodduringwhichrelevantservicesareprovidedbytheemployees,exceptthepost-employmentbenefitsandterminationbenefits.Specifically,theshort-termbenefitsinclude:employeesalaries,bonuses,allowancesandsubsidies,employeebenefits,socialinsurancecontributionssuchasthemedicalinsuranceandtheworkinjuryinsurance,housingfunds,tradeunionfundsandemployeeeducationfunds,short-termpaidabsence,short-termprofitsharingplan,non-monetarywelfareandothershort-termbenefits.Short-termemployeebenefitspayablearerecognizedasliabilities,withacorrespondingchargetoprofitorlossfortheperiodorinthecostsofrelevantassetsaccordingtothebeneficiariesofservicesprovidedbyemployeesintheaccountingperiodinwhichemployeesprovideservicestotheGroup.StaffwelfareexpensesincurredbytheGrouparerecognizedinprofitorlossforthe

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periodorthecostsofrelevantassetsbasedontheactuallyoccurredamountswhentheyactuallyoccurred.Non-monetarystaffwelfareexpensesaremeasuredatfairvalue.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

22.Employeebenefits-continued

22.1Short-termemployeebenefits-continuedPaymentmadebytheGroupofsocialsecuritycontributionsforemployeessuchaspremiumsorcontributionsonmedicalinsurance,workinjuryinsuranceandmaternityinsurance,etc.andpaymentsofhousingfunds,aswellasunionrunningcostsandemployeeeducationcostsprovidedinaccordancewithrelevantrequirements,arecalculatedaccordingtoprescribedbasesandpercentagesindeterminingtheamountofemployeebenefitsandrecognizedasrelevantliabilities,withacorrespondingchargetoprofitorlossfortheperiodorthecostsofrelevantassetsintheaccountingperiodinwhichemployeesprovideservices.

22.2Post-employmentbenefitsPost-employmentbenefitsrefertotherewardsandbenefitsofvariousformsprovidedbytheGroupaftertheemployeeshaveretiredorterminatedthelaborrelationshipwiththeenterprisefortheservicesrenderedbytheemployees,excepttheshort-termbenefitsandtheterminationbenefits.Thepost-employmentbenefitsconsistofthepensioninsurance,theannuity,theunemploymentinsuranceandotherpost-employmentbenefits.Post-employmentbenefitplansareclassifiedbytheGroupintodefinedcontributionplansanddefinedbenefitplans.Thepost-employmentbenefitplanreferstotheagreementstheGroupenteredintowiththeemployeesonthepost-employmentbenefitsortheregulationsormeasuresestablishedbytheGroupforprovisionsofthepost-employeebenefits,amongwhichthedefinedcontributionplansrefertothepost-employmentbenefitplanunderwhichtheGroupshallnolongerundertakeanyobligationsofpaymentsafterpayingfixedexpensestoindependentfunds;thedefinedbenefitplansrefertothepost-employmentbenefitplansotherthanthedefinedcontributionplans.DuringtheaccountingperiodinwhichemployeesrenderservicestotheGroup,theamountspayablecalculatedbasedonthedefinedcontributionplansarerecognizedasliabilitiesandincludedinprofitorlossfortheperiodorcostsofrelatedassets.Fordefinedbenefitplans,theGroupattributesthewelfareobligationsarisingfromthedefinedbenefitplanstotheperiodinwhichemployeesprovideservicestotheGroupaccordingtotheformuladeterminedbasedontheprojectedcumulativebenefitunitmethod,andincludestheminprofitorlossfortheperiodorcostsofrelatedassets.Definedbenefitcostsarecategorizedasfollows:

?Servicecost(includingcurrentservicecost,pastservicecost,aswellasgainsandlosseson

settlements);?Netinterestofnetliabilitiesorassetsofdefinedbenefitplans(includinginterestincomeof

plannedassets,interestexpensesofdefinedbenefitplanliabilitiesandeffectofassetceiling);

and?Changesarisingfromremeasurementofnetliabilitiesornetassetsofdefinedbenefitplans.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

22.Employeebenefits-continued

22.2Post-employmentbenefits-continuedServicecostsandnetinterestofnetliabilitiesandnetassetsofdefinedbenefitplansarerecognizedinprofitorlossfortheperiodorcostsofrelatedassets.Remeasurementofthenetdefinedbenefitliabilities(assets)(includingactuarialgainsandlosses,thereturnonplannedassets,excludingamountsincludedinnetinterestonnetdefinedbenefitliabilities(assets),andanychangesintheeffectoftheassetceiling,excludingamountsincludedinnetinterestonnetdefinedbenefitliabilities(assets))arerecognizedinothercomprehensiveincome.Thedeficitorsurplusresultingfromthepresentvalueofthedefinedbenefitplanobligationslessthefairvalueofthedefinedbenefitplanassetsisrecognizedasanetdefinedbenefitplanliabilityornetasset.

22.3TerminationbenefitsTerminationbenefitsrefertothecompensationstheGrouppaytotheemployeesforterminatingtheemploymentrelationshipwithemployeesbeforetheexpiryoftheemploymentcontractsorencouragingemployeestoacceptvoluntaryredundancy.WhentheGroupprovidesterminationbenefitstoemployees,employeebenefitliabilitiesarerecognizedforterminationbenefits,withacorrespondingchargetoprofitorlossfortheperiodattheearlierof:(1)whentheGroupcannotunilaterallywithdrawtheofferofterminationbenefitsbecauseoftheterminationplanoracurtailmentproposal;and(2)whentheGrouphasadetailedandformalrestructuringplaninvolvingthepaymentofdismissalbenefit;Inaddition,therestructuringplanhasbeenimplementedorthemaincontentsoftheplanhavebeennotifiedtotheaffectedparties,sothatallpartieshaveformedareasonableexpectationthattheGroupwillimplementtherestructuring.

22.4Otherlong-termemployeebenefitsOtherlong-termemployeebenefitsrefertoallemployeebenefitsexceptforshort-termbenefits,post-employmentbenefits,andterminationbenefits.Otherlong-termemployeebenefitsthatqualifyasdefinedcontributionplansaretreatedinaccordancewiththerelevantprovisionsofthedefinedcontributionplansmentionedabove,exceptthatthenetliabilityornetassetforotherlong-termemployeebenefitsisrecognizedandmeasuredinaccordancewiththerelevantprovisionsofthedefinedbenefitplans.Attheendofthereportingperiod,employeecompensationcostsarisingfromotherlong-termemployeebenefitsarerecognizedasthreecomponents:servicecost,netinterestonnetliabilityornetassetforotherlong-termemployeebenefits,andchangesresultingfromtheremeasurementofthenetliabilityornetassetforotherlong-termemployeebenefits.Thetotalnetamountoftheseitemsisincludedinprofitorlossfortheperiodorinthecostsofrelatedassets.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

22.Employeebenefits-continued

22.4Otherlong-termemployeebenefits-continuedTheGroupprovidesinternalretirementbenefitstoemployeesacceptingtheinternalretirementarrangements.Internalretirementbenefitsrefertothepaymentsofsalariesandsocialsecuritycontributionsforemployeeswhohavenotreachedtheretirementageregulatedbythecountryandareapprovedtoquitthejobvoluntarily.Forinternalretirementbenefits,theinternalretirementbenefitstheGroupisexpectedtopayduringtheperiodfromthedatewhenemployeesstopprovidingservicestothedateofnormalretirementarerecognizedasliabilitiesatthepresentvalueandincludedinprofitorlossfortheperiodwhenrelevantrecognitionrequirementsoftheinternalretirementbenefitsaremet.

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

24.BondspayableTheGroup'sbondspayablearemeasuredatfairvaluewheninitiallyrecognized,andrelevanttransactioncostsareincludedintheinitiallyrecognizedamount.Itissubsequentlymeasuredatamortizedcost.Thedifferencebetweenthebondissuepriceandthetotalfacevalueofthebondsisregardedasthebondpremiumordiscount,whichisamortizedatthetimeofinterestaccrualaccordingtotheeffectiveinterestmethodduringthedurationofthebonds,andistreatedaccordingtotheprincipleofhandlingborrowingcosts.

25.Preferenceshares,perpetualbondsandotherfinancialinstrumentsTheactualissuepricefortheissuanceofequityinstrumentsisincludedinshareholders'equityafterdeductingrelevanttransactioncostsfromshareholders’equity(capitalreserve).Ifthecapitalreserveisinsufficienttooffset,surplusreserveandretainedearningswillbeoffsetinturn.TheconsiderationandtransactioncostspaidforrepurchasingtheGroup'sequityinstrumentsreduceshareholders’equity.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

25.Preferenceshares,perpetualbondsandotherfinancialinstruments-continuedTheGroupclassifiesfinancialinstruments,ortheircomponents,asfinancialliabilitiesorequityinstrumentsatinitialrecognitionbasedonthecontractualtermsoftheissuedperpetualbondsandtheirreflectedeconomicsubstance,combinedwiththedefinitionsoffinancialliabilitiesandequityinstruments.Forfinancialinstrumentssuchasperpetualbondsclassifiedasequityinstruments,interestexpenseordividend(dividend)distributionsaretreatedasprofitdistributionsoftheGroup,andtheirrepurchases,write-offs,etc.,aretreatedaschangesinequity,andrelatedtransactioncostsaredeductedfromequity.

26.Revenuerecognition

26.1Disclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementby

typeofbusinessRevenuereferstothetotalinflowofeconomicbenefitsformedinthedailyactivitiesoftheGroup,whichwillleadtotheincreaseofowner'sequityandhasnothingtodowiththecapitalinvestedbyowners.TheGroup'srevenueismainlyfromportbusiness,bondedlogisticsbusinessandotherbusinesses.TheGrouprecognizesrevenuebasedonthetransactionpriceallocatedtotheperformanceobligationwhentheGroupsatisfiesaperformanceobligationinthecontract,namely,whenthecustomerobtainscontroloverrelevantgoodsorservices.AperformanceobligationisacommitmentthattheGrouptransfersadistinctgoodsorservicetoacustomerinthecontract.ThetransactionpriceistheamountofconsiderationtowhichtheGroupexpectstobeentitledinexchangefortransferringpromisedgoodsorservicestoacustomer,excludingamountscollectedonbehalfofthirdpartiesandamountsexpectedtoberefundedtoacustomer.ThetransactionpricerecognizedbytheGroupdoesnotexceedtheamountofaccumulatedrecognizedrevenuethatisunlikelytobesignificantlyreversedwhentherelevantuncertaintyiseliminated.TheGroupevaluatesthecontractonthecontractstartdate,identifieseachindividualperformanceobligationcontainedinthecontract,anddetermineswhethereachindividualperformanceobligationisperformedwithinacertainperiodoratacertaintimepoint.ItisaperformanceobligationsatisfiedduringaperiodoftimeandtheGrouprecognizesrevenueduringaperiodoftimeaccordingtotheprogressofperformanceifoneofthefollowingconditionsismet:(i)thecustomerobtainsandconsumeseconomicbenefitsatthesametimeoftheGroup'sperformance;(ii)thecustomerisabletocontrolgoodsorservicesinprogressduringtheGroup'sperformance;(iii)goodsorservicesgeneratedduringtheGroup'sperformancehaveirreplaceableutilization,andtheGroupisentitledtocollectamountsofcumulativeperformancepartwhichhavebeendoneuptonow.Otherwise,revenueisrecognizedatapointintimewhenthecustomerobtainscontrolovertherelevantgoodsorservices.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

26.Revenuerecognition-continued

26.1Disclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementby

typeofbusiness-continuedTheGroupadoptsoutputmethod,i.e.,thevalueofgoodsorservicestransferredtocustomerstodeterminetheappropriateprogressofperformance.Wheretheprogresscannotbedeterminedreasonably,therevenueisrecognizedbasedontheamountofcostthatisexpectedtobecompensatedbasedonthecostalreadyincurred,untiltheprogressofperformanceisreasonablydetermined.ContractassetsrefertotherightthattheGrouphastransferredgoodsorservicestocustomersandisentitledtoreceiveconsideration,andtherightdependsonotherfactorsotherthanthepassageoftime.PleaserefertoNoteIV.11fordetailsoftheaccountingpoliciesfortheimpairmentofcontractassets.TheGroup'sunconditional(thatis,onlydependingonthepassageoftime)righttocollectconsiderationfromcustomersisseparatelylistedasreceivables.ContractliabilitiesrefertotheGroup'sobligationtotransfergoodsorservicestoacustomerforconsiderationreceivedorreceivablefromthecustomer.Contractassetsandcontractliabilitiesunderthesamecontractarepresentedinnetamount.Iftherearetwoormoreofperformanceobligationsincludedinthecontract,attheinceptionofthecontract,theGroupallocatesthetransactionpricetoeachsingleperformanceobligationbasedontheproportionofstand-alonesellingpriceofgoodsorservicespromisedineachstand-aloneperformanceobligation.However,ifthereisconclusiveevidenceindicatingthatthecontractdiscountorvariableconsiderationisonlyrelativewithoneormore(notthewhole)performanceobligationsinthecontract,theGroupwillallocatethecontractdiscountorvariableconsiderationtorelativeoneormoreperformanceobligations.Stand-alonesellingpricereferstothepriceofasinglesaleofgoodsorservices.Ifthestand-alonesellingpricecannotbeobserveddirectly,theGroupestimatesthestand-alonesellingpricethroughcomprehensiveconsiderationofallrelativeinformationthatcanbereasonablyacquiredandmaximumuseofobservableinputs.Incaseoftheexistenceofvariableconsideration(suchassalesdiscount)inthecontract,theGroupshalldeterminethebestestimateofvariableconsiderationbasedontheexpectedvalueorthemostprobablyoccurredamount.Thetransactionpriceincludingvariableconsiderationshallnotexceedtheamountofthecumulativelyrecognizedrevenuewhichisunlikelytobesignificantlyreversedwhenrelevantuncertaintyiseliminated.Ateachbalancesheetdate,theGroupre-estimatestheamountofvariableconsiderationwhichshouldbeincludedintransactionprice.Ifthecustomerpaysnon-cashconsideration,theGroupdeterminesthetransactionpricebasedonthefairvalueofthenon-cashconsideration.Ifthefairvalueofnon-cashconsiderationcannotbereasonablyestimated,theGroupshalldeterminethetransactionpriceindirectlybyreferencetothestand-alonesellingpriceofthegoodsorservicespromisedtotransfertothecustomer.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

26.Revenuerecognition-continued

26.1Disclosureofaccountingpoliciesadoptedforrevenuerecognitionandmeasurementby

typeofbusiness-continuedIncaseoftheexistenceofasignificantfinancingcomponentinthecontract,theGroupshalldeterminethetransactionpriceontheassumptionthatthecustomerhaspaidtheamountpayablebycashwhenobtainingthecontroloverthegoodsorservices.Differencesbetweentransactionpriceandcontractconsiderationareamortizedusingeffectiveinterestmethodduringthecontractlife.Attheinceptionofthecontract,iftheperiodbetweenwhentheGrouptransfersapromisedgoodsorservicetoacustomerandwhenthecustomerpaysforthatgoodsorservicewillbeoneyearorless,theGroupwouldnotconsiderthesignificantcomponentinthecontract.TheGroupassesseswhetheritcontrolseachspecifiedgoodsorservicebeforethatgoodsorserviceistransferredtothecustomertodeterminewhethertheGroupisaprincipaloranagent.IftheGroupcontrolsthespecifiedgoodorservicebeforethatgoodorserviceistransferredtoacustomer,theGroupisaprincipalandrecognizesrevenueinthegrossamountofconsiderationreceivedorreceivable.Otherwise,theGroupisanagentandrecognizesrevenueintheamountofanyfeeorcommissiontowhichitexpectstobeentitled.ThefeeorcommissionisthenetamountofconsiderationthattheGroupretainsafterpayingtheotherpartytheconsiderationreceivedinexchangeforthegoodsorservicestobeprovidedbythatparty,orisdeterminedinaccordancewiththeestablishedcommissionamountorpercentage,etc.WheretheGroupreceivesreceiptsinadvancefromacustomerforsalesofgoodsorrenderingofservices,theamountisfirstrecognizedasaliabilityandthentransferredtorevenuewhentherelatedperformanceobligationhasbeensatisfied.WhentheGroup'sadvancepaymentsreceivedarenotrequiredtoberefundedanditisprobablethatthecustomerwillwaiveallorpartofitscontractualrights,theGrouprecognizesthesaidamountsasrevenueonapro-ratabasisinaccordancewiththepatternofexerciseofthecustomer'scontractualrights,iftheGroupexpectstobeentitledtotheamountsrelatingtothecontractualrightswaivedbythecustomer;otherwise,theGroupreversestherelatedbalanceofthesaidliabilitiestorevenueonlywhenitishighlyunlikelythatthecustomerwillrequireperformanceoftheremainingperformanceobligations.Forportbusiness,therevenuefromthehandlingofcontainersandbulkcargosisrecognizedovertimebasedontheprogressofcompletedservices,andtherevenuefromthestorageofcontainersandbulkcargosisrecognizedonastraight-linebasisovertheperiodofstorage.Forbondedlogisticsbusiness,therevenueisrecognizedbasedontheprogressofservicesrendered,wheretheprogressofcompletedservicesisdeterminedbasedontheproportionofdaysonservicesprovidedtotheestimatedtotalnumberofservicedays.Asatthebalancesheetdate,theGrouphasre-estimatedtheprogressofcompletedbondedlogisticsservicesothatitreflectsthechangesinperformancestatus.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

26.Revenuerecognition-continued

26.2Similaroperationsunderdifferentbusinessmodelswhichinvolvedifferentrevenue

recognitionandmeasurementmethodsTheGrouphasnosimilaroperationsunderdifferentbusinessmodelswhichinvolvedifferentrevenuerecognitionandmeasurementmethods.

26.3CostsofobtainingacontractFortheincrementalcostofobtainingthecontract(costthatwillnotoccurifthecontractisnotobtained)thatisexpectedtoberecoverable,itisrecognizedasanasset.Iftheamortizationperiodofsuchassetislessthanoneyear,itisrecognizedinprofitorlossfortheperiodwhenincurred.Otherexpensesincurredforobtainingthecontractisincludedinprofitorlossfortheperiodwhenincurred,exceptforthoseexplicitlyassumedbythecustomer.

26.4CoststofulfilacontractIfthecostsincurredinfulfillingacontractarenotwithinthescopeofanystandardsotherthanRevenueStandards,theGrouprecognizesanassetonlyifthosecostsmeetallofthefollowingcriteria:(1)thecostsrelatedirectlytoacontractortoananticipatedcontractthattheGroupcanspecificallyidentify;(2)thecostsenhanceresourcesoftheGroupthatwillbeusedinsatisfyingperformanceobligationsinthefuture;and(3)thecostsareexpectedtoberecovered.Theassetmentionedaboveshallbeamortizedonabasisthatisconsistentwiththerevenuerecognitionofthegoodsorservicestowhichtheassetrelatesandrecognizedinprofitorlossfortheperiod.

27.GovernmentgrantsGovernmentgrantsrefertomonetaryassetsandnon-monetaryassetsobtainedbytheGroupfromthegovernmentfreeofcharge.Governmentgrantsarerecognizedwhentheycanmeettheconditionsattachedtogovernmentgrantsandcanbereceived.Ifagovernmentgrantisintheformofatransferofamonetaryasset,itismeasuredattheamountreceivedorreceivable.Ifagovernmentgrantisintheformofanon-monetaryasset,itismeasuredatfairvalue.Ifthefairvaluecannotbereliablydetermined,itismeasuredatanominalamount.Agovernmentgrantmeasuredatanominalamountisrecognizedimmediatelyinprofitorlossfortheperiod.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

27.Governmentgrants-continued

27.1DeterminationbasisandaccountingtreatmentofgovernmentgrantrelatedtoassetsGovernmentgrantsoftheGroupmainlyincludegrantsforintelligentsystem,etc.,andthesegovernmentgrantsrelatetoassetsastheywillformlong-termassets.Agovernmentgrantrelatedtoanassetisrecognizedasdeferredincome,andincludedinprofitorlossbystagesovertheusefullifeoftherelatedassetinareasonableandsystematicway.Agovernmentgrantmeasuredatanominalamountisrecognizedimmediatelyinprofitorlossinthecurrentperiod.Wheretherelevantassetissold,transferred,retiredordamagedpriortotheendofitsusefullife,therelatedundistributeddeferredincomeistransferredtoprofitorlossofthedisposalperiod.

27.2DeterminationbasisandaccountingtreatmentofgovernmentgrantrelatedtoincomeGovernmentgrantsoftheGroupmainlyincludegrantsforbusinessdevelopmentandspecializedoperations,etc.,andthesegovernmentgrantsrelatetoincomeastheywillnotformlong-termassets.TheGroupclassifiesgovernmentgrantsthataredifficulttobedistinguishedasgovernmentgrantsrelatedtoincomeaggregately.Foragovernmentgrantrelatedtoincome,ifthegrantisacompensationforrelatedexpensesorlossestobeincurredinsubsequentperiods,thegrantisrecognizedasdeferredincomeandrecognizedinprofitorlossfortheperiodinwhichtherelatedcostsorlossesarerecognized;ifthegrantisacompensationforrelatedexpensesorlossesalreadyincurred,thegrantisrecognizedimmediatelyinprofitorloss.AgovernmentgrantrelatedtotheGroup'sdailyactivitiesisrecognizedinotherincome;agovernmentgrantnotrelatedtotheGroup'sdailyactivitiesisrecognizedinnon-operatingincome.

28.BorrowingcostsBorrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofqualifyingassetarecapitalizedwhenexpendituresforsuchassetandborrowingcostsareincurredandactivitiesrelatingtotheacquisition,constructionorproductionoftheassetthatarenecessarytopreparetheassetforitsintendeduseorsalehavecommenced.Capitalizationofborrowingcostsceaseswhenthequalifyingassetbeingacquired,constructedorproducedbecomesreadyforitsintendeduseorsale.Capitalizationofborrowingcostsissuspendedduringperiodsinwhichtheacquisition,constructionorproductionofaqualifyingassetisinterruptedabnormallyandwhentheinterruptionisforacontinuousperiodofmorethan3months.Capitalizationofborrowingcostsissuspendeduntiltheacquisition,constructionorproductionoftheassetisresumed.Otherborrowingcostsarerecognizedasanexpenseintheperiodinwhichtheyareincurred.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

28.Borrowingcosts-continuedWherefundsareborrowedunderaspecific-purposeborrowing,theamountofinteresttobecapitalizedistheactualinterestexpenseincurredonthatborrowingfortheperiodlessanybankinterestearnedfromdepositingtheborrowedfundsbeforebeingusedontheassetoranyinvestmentincomeonthetemporaryinvestmentofthosefunds.Wherefundsareborrowedundergeneral-purposeborrowings,theGroupdeterminestheamountofinteresttobecapitalizedonsuchborrowingsbyapplyingacapitalizationratetotheweightedaverageoftheexcessofcumulativeexpendituresontheassetovertheamountsofspecific-purposeborrowings.Thecapitalizationrateistheweightedaverageoftheinterestratesapplicabletothegeneral-purposeborrowings.Duringthecapitalizationperiod,exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencyareallcapitalized.Exchangedifferencesinconnectionwithgeneral-purposeborrowingsarerecognizedinprofitorlossfortheperiodinwhichtheyareincurred.

29.IncometaxTheincometaxexpensesincludecurrentincometaxanddeferredincometax.

29.1CurrentincometaxAtthebalancesheetdate,currentincometaxliabilities(orassets)forthecurrentandpriorperiodsaremeasuredattheamountexpectedtobepaid(orrecovered)accordingtotherequirementsoftaxlaws.

29.2DeferredtaxassetsanddeferredtaxliabilitiesFortemporarydifferencesbetweenthecarryingamountsofcertainassetsorliabilitiesandtheirtaxbase,orbetweenthenilcarryingamountofthoseitemsthatarenotrecognizedasassetsorliabilitiesandtheirtaxbasethatcanbedeterminedaccordingtotaxlaws,deferredtaxassetsandliabilitiesarerecognizedusingthebalancesheetliabilitymethod.Deferredincometaxaregenerallyrecognizedforalltaxabletemporarydifferences.Deferredtaxassetsfordeductibletemporarydifferencesarerecognizedtotheextentthatitisprobablethattaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized.However,fortemporarydifferencesassociatedwiththeinitialrecognitionofgoodwillandtheinitialrecognitionofanassetorliabilityarisingfromatransaction,whichisnotabusinesscombinationthataffectsneithertheaccountingprofitnortaxableprofits(ordeductiblelosses)andwillnotresultintaxabletemporarydifferencesanddeductibletemporarydifferencesinequivalentamountsatthetimeoftransaction,nodeferredtaxassetorliabilityisrecognized.Fordeductiblelossesandtaxcreditsthatcanbecarriedforward,deferredtaxassetsarerecognizedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductiblelossesandtaxcreditscanbeutilized.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

29.Deferredtaxassets/deferredtaxliabilities-continued

29.2Deferredtaxassetsanddeferredtaxliabilities-continuedDeferredtaxliabilitiesarerecognizedfortaxabletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandjointventures,exceptwheretheGroupisabletocontrolthetimingofthereversalofthetemporarydifferencesanditisprobablethatthetemporarydifferenceswillnotbereversedintheforeseeablefuture.Deferredtaxassetsarisingfromdeductibletemporarydifferencesassociatedwithinvestmentsinsubsidiaries,associatesandjointventuresarerecognizedtotheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilizedandtheyareexpectedtobereversedintheforeseeablefuture.Atthebalancesheetdate,deferredtaxassetsandliabilitiesaremeasuredatthetaxratesapplicableintheperiodinwhichtheassetisrealizedortheliabilityissettledaccordingtotaxlaws.Currentanddeferredtaxexpensesorincomearerecognizedinprofitorlossfortheperiod,exceptwhentheyarisefromtransactionsoreventsthataredirectlyrecognizedinothercomprehensiveincomeorshareholders'equity,inwhichcasetheyarerecognizedinothercomprehensiveincomeorshareholders'equity,andwhentheyarisefrombusinesscombinations,inwhichcasetheyadjustthecarryingamountofgoodwill.Atthebalancesheetdate,thecarryingamountofdeferredtaxassetsisreviewedandreducedifitisnolongerprobablethatsufficienttaxableprofitswillbeavailableinthefuturetoallowthebenefitofdeferredtaxassetstobeutilized.Anysuchreductioninamountisreversedwhenitbecomesprobablethatsufficienttaxableprofitswillbeavailable.

29.3IncometaxoffsettingWhentheGrouphasalegalrighttosettleonanetbasisandintendseithertosettleonanetbasisortorealizetheassetsandsettletheliabilitiessimultaneously,currenttaxassetsandcurrenttaxliabilitiesareoffsetandpresentedonanetbasis.WhentheGrouphasalegalrighttosettlecurrenttaxassetsandliabilitiesonanetbasis,anddeferredtaxassetsanddeferredtaxliabilitiesrelatetoincometaxesleviedbythesametaxationauthorityoneitherthesametaxableentityordifferenttaxableentitieswhichintendeithertosettlecurrenttaxassetsandliabilitiesonanetbasisortorealizetheassetsandliabilitiessimultaneously,ineachfutureperiodinwhichsignificantamountsofdeferredtaxassetsorliabilitiesareexpectedtobereversed,deferredtaxassetsanddeferredtaxliabilitiesareoffsetandpresentedonanetbasis.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

30.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancial

statementsdenominatedinforeigncurrencies

30.1TransactionsdenominatedinforeigncurrenciesAforeigncurrencytransactionisrecorded,oninitialrecognition,byapplyingthespotexchangerateonthedateofthetransaction.Atthebalancesheetdate,foreigncurrencymonetaryitemsaretranslatedintofunctionalcurrencyusingthespotexchangeratesatthebalancesheetdate.Exchangedifferencesarisingfromthedifferencesbetweenthespotexchangeratesprevailingatthebalancesheetdateandthoseoninitialrecognitionoratthepreviousbalancesheetdatearerecognizedinprofitorlossfortheperiod,exceptthat(1)exchangedifferencesrelatedtoaspecific-purposeborrowingdenominatedinforeigncurrencythatqualifyforcapitalizationarecapitalizedaspartofthecostofthequalifyingassetduringthecapitalizationperiod;(2)exchangedifferencesrelatedtohedginginstrumentsforthepurposeofhedgingagainstforeigncurrencyrisksareaccountedforusinghedgeaccounting;(3)exchangedifferencesarisingfromchangesinthecarryingamounts(otherthantheamortizedcost)ofmonetaryitemsatfairvaluethroughothercomprehensiveincomearerecognizedasothercomprehensiveincome.Whentheconsolidatedfinancialstatementsincludeforeignoperation(s),ifthereisforeigncurrencymonetaryitemconstitutinganetinvestmentinaforeignoperation,exchangedifferencesarisingfromchangesinexchangeratesarerecognizedas"exchangedifferencesarisingfromtranslationoffinancialstatementsdenominatedinforeigncurrencies"inothercomprehensiveincome,andinprofitorlossfortheperiodupondisposaloftheforeignoperation.Foreigncurrencynon-monetaryitemsmeasuredathistoricalcostaretranslatedtotheamountsinfunctionalcurrencyatthespotexchangeratesonthedatesofthetransactions.Foreigncurrencynon-monetaryitemsmeasuredatfairvaluearere-translatedatthespotexchangerateonthedatewhenthefairvalueisdetermined.Differencebetweenthere-translatedfunctionalcurrencyamountandtheoriginalfunctionalcurrencyamountistreatedaschangesinfairvalue(includingchangesinexchangerate)andisrecognizedinprofitorlossorasothercomprehensiveincome.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

30.Transactionsdenominatedinforeigncurrenciesandtranslationoffinancial

statementsdenominatedinforeigncurrencies-continued

30.2TranslationoffinancialstatementsdenominatedinforeigncurrenciesForthepurposeofpreparingtheconsolidatedfinancialstatements,financialstatementsofaforeignoperationaretranslatedfromtheforeigncurrencyintoRMBusingthefollowingmethod:

assetsandliabilitiesonthebalancesheetaretranslatedatthespotexchangerateprevailingatthebalancesheetdate;shareholders'equityitemsexceptfortranslationdifferencesarisingfromtranslationofforeigncurrencyfinancialstatementsitemsinretainedearningsandothercomprehensiveincomearetranslatedatthespotexchangeratesatthedatesonwhichsuchitemsarose;allitemsintheincomestatementaswellasitemsreflectingthedistributionofprofitsaretranslatedattheaverageexchangeratesoftheaccountingperiodoftheconsolidatedfinancialstatements;retainedearningsatthebeginningoftheyeararetheconvertedyear-endretainedearningsofthepreviousyear.Theyear-endretainedearningsarecalculatedandpresentedinaccordancewiththeitemsofprofitdistributionafterconversion.Thedifferencebetweenthetranslatedassetsandtheaggregateofliabilitiesandshareholders'equityitemsisrecognizedasothercomprehensiveincomeandincludedinshareholders'equity.Cashflowsarisingfromatransactioninforeigncurrencyandthecashflowsofaforeignsubsidiaryaretranslatedataverageexchangerateduringtheaccountingperiodofconsolidatedfinancialstatements.Theeffectofexchangeratechangesoncashandcashequivalentsisregardedasareconcilingitemandpresentedseparatelyinthecashflowstatementas"effectofexchangeratechangesoncashandcashequivalents".Theamountattheendoflastyearandthecomparativefiguresofpreviousyeararepresentedatthetranslatedamountsinthepreviousyear'sfinancialstatements.OndisposaloftheGroup'sentireinterestinaforeignoperation,oruponalossofcontroloveraforeignoperationduetodisposalofcertaininterestinitorotherreasons,theGrouptransferstheaccumulatedexchangedifferencesarisingfromtranslationoffinancialstatementsofthisforeignoperationattributabletotheowners'equityoftheCompanyandpresentedunderothercomprehensiveincome,toprofitorlossintheperiodinwhichthedisposaloccurs.IncaseofadisposalofpartequityinvestmentsorotherreasonleadingtolowerinterestpercentageinforeignoperationsbutdoesnotresultintheGrouplosingcontroloveraforeignoperation,theexchangedifferencesarisingfromthetranslationdifferenceoffinancialstatementsdenominatedinforeigncurrenciesrelatedtothisdisposedpartarere-attributedtonon-controllinginterestsandarenotrecognizedinprofitorloss.Forpartialdisposalsofequityinterestsinforeignoperationswhichareassociatesorjointventures,theproportionateshareoftheaccumulatedexchangedifferencesarisingfromtranslationdifferenceoffinancialstatementsdenominatedinforeigncurrenciesisreclassifiedtoprofitorloss.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

31.LeasesAleaseisacontractinwhichthelessor,foracertainperiodoftime,givesthelesseetherighttousetheassetstoobtainaconsideration.Onthecontractstartdate,theGroupassesseswhetherthecontractisaleaseorincludesalease.Ifonepartyinthecontracttransferstherighttocontroltheuseofoneormoreidentifiedassetswithinacertainperiodinexchangeforconsideration,thecontractisaleaseorincludesalease.Unlessthecontracttermsandconditionschange,theGroupwillnotre-evaluatewhetherthecontractisaleaseorincludesalease.

31.1TheGroupaslessee

31.1.1SeparatingcomponentsofaleaseForacontractthatcontainsoneormoreleasecomponentsornon-leasecomponents,theGroupseparateseachindividualleaseandnon-leasecomponentandallocatesthecontractconsiderationintherelativeproportionofthesumoftheindividualpriceofeachleasecomponentandtheindividualpriceofthenon-leasecomponent.

31.1.2Right-of-useassetsExceptforshort-termleasesandleasesoflow-valueassets,theGrouprecognizestheright-of-useassetsoftheleasesatthecommencementdate.ThecommencementdateoftheleaseisthedatefromwhichthelessorprovidestheleasedassetstomakethemavailableforusebytheGroup.Right-of-useassetsareinitiallymeasuredatcost.Thecostincludes:

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

asset,restoringthesiteonwhichitislocatedorrestoringtheunderlyingassettotheconditionrequiredbythetermsandconditionsofthelease.Right-of-useassetsaredepreciatedbytheGroupinaccordancewiththeASBENo.4--FixedAssets.IftheGroupisreasonablycertain,thattheleasewilltransferownershipoftheunderlyingassettotheGroupbytheendoftheleaseterm,theright-of-useassetsaredepreciatedfromthecommencementdatetotheendoftheusefullifeoftheunderlyingasset.Otherwise,theright-of-useassetsaredepreciatedfromthecommencementdatetotheearlieroftheendoftheusefullifeoftheright-of-useassetsortheendoftheleaseterm.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

31.Leases-continued

31.1TheGroupaslessee-continued

31.1.3LeaseliabilitiesExceptforshort-termleasesandleasesoflow-valueassets,theGroupinitiallymeasuresleaseliabilitiesatthepresentvalueoftheoutstandingleasepaymentsatthecommencementdate.Incalculatingthepresentvalueoftheleasepayments,theGroupusestheimplicitinterestrateoftheleaseasthediscountrate.Ifitisnotpossibletodeterminetheimplicitinterestrateofthelease,theincrementalborrowingrateshallbeapplied.TheleasepaymentscomprisethefollowingpaymentsbytheGroupfortherighttousetheunderlyingassetduringtheleaseterm:

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

option.?paymentsforterminatingthelease,iftheleasetermreflectstheGroupexercisinganoption

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

?wherethereisachangeintheleaseterm,orintheassessmentofanoptiontopurchasethe

underlyingasset,theGroupremeasurestheleaseliabilities,onthebasisoftherevisedleases

paymentsandthereviseddiscountrate.?wherethereisachangeintheamountsexpectedtobepayableunderaresidualvalue

guarantee,orinfutureleasepaymentsresultingfromachangeinanindexorarateusedto

determinethosepayments,theGroupremeasurestheleaseliabilities,onthebasisofthe

revisedleasepaymentsandtheunchangeddiscountrate,unlessthechangeinthelease

paymentsresultsfromachangeinfloatinginterestrates,inwhichcaseareviseddiscount

rateisappliedtocalculatethepresentvalue.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

31.Leases-continued

31.1TheGroupaslessee-continued

31.1.4Short-termleasesandleasesoflow-valueassetsTheGroupelectsnottorecognizeright-of-useassetsorleaseliabilitiesforshort-termleasesandleasesoflow-valueassets,i.e.,portandterminalfacilities,buildings,machineryandequipment,furniture,fixtureandotherequipment,motorvehiclesandcargoshipsandothers.Ashort-termleaseisaleasethat,atthecommencementdate,hasaleasetermof12monthsorlessanddoesnotcontainacalloption.Aleaseoflow-valueassetsisaleasethat,thevalueoftheunderlyingassetislowerwhenitisnew.Forshort-termleasesandleasesoflow-valueassets,theGrouprecognizestheleasepaymentsinprofitorloss,orinthecostofrelatedassetsonastraight-linebasisovereachperiodwithintheleaseterm.

31.1.5LeasemodificationsAleasemodificationshouldbeaccountedforasaseparateleaseifbothofthefollowingapply:

?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormoreunderlyingassets.?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alone

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

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

31.Leases-continued

31.1TheGroupaslessee-continued

31.1.6SaleandleasebacktransactionsTheGroupasseller-lesseeTheGroupappliestherequirementsofRevenueStandardtodeterminewhetherthetransferofanassetisaccountedforasasaleofthatasset.Ifthetransferofanassetdoesnotconstituteasale,theGroupshallcontinuetorecognizethetransferredassets,recognizeafinancialliabilityequaltothetransferproceedsandaccountsforsuchfinancialliabilityinaccordancewiththeAccountingStandardsforBusinessEnterprisesNo.22--FinancialInstruments:RecognitionandMeasurement.Ifthetransferofanassetisasale,theGroupshallmeasuretheright-of-useassetsarisingfromtheleasebackattheproportionofthepreviouscarryingamountoftheassetthatrelatestotherightofuse,andrecognizeanygainorlossforrightstransferredtothelessoronly.

31.2TheGroupaslessor

31.2.1SeparatingcomponentsofaleaseForacontractthatcontainsleasecomponentsandnon-leasecomponents,theGroupallocatesthecontractconsiderationinaccordancewiththeRevenueStandardsonallocationoftransactionprices,basedontherespectiveindividualpricesoftheleasecomponentsandthenon-leasecomponents.

31.2.2ClassificationofleasesLeasesareclassifiedasfinanceleaseswheneverthetermsoftheleasetransfersubstantiallyalltherisksandrewardsofownership.Allotherleasesareclassifiedasoperatingleases.

31.2.2.1TheGroupaslessorunderoperatingleasesTheGrouprecognizesleasereceiptsfromoperatingleasesasrentalincomeusingastraight-linemethodovertherespectiveperiodsoftheleaseterm.TheGroup'sinitialdirectcostsincurredinconnectionwithoperatingleasesarecapitalizedwhenthecostsincurred,andareallocatedtoprofitorlossfortheperiodovertheleasetermonthesamebasisastherecognitionofrentalincome.VariableleasereceiptsacquiredbytheGroupinconnectionwithoperatingleasesthatarenotincludedintheleasereceiptsarerecognizedinprofitorlossfortheperiodwhentheyareactuallyincurred.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

31.Leases-continued

31.2TheGroupaslessor-continued

31.2.2Classificationofleases-continued

31.2.2.2TheGroupaslessorunderfinanceleasesAtthecommencementdate,theGrouprecognizesafinanceleasereceivableattheamountequaltothenetleaseinvestmentwithassetsunderfinanceleasederecognized.Thenetleaseinvestmentisthesumofanyunguaranteedresidualvalueandthepresentvalueoftheleasereceiptsovertheleasetermdiscountedattheinterestrateimplicitinlease.TheleasereceivablecomprisesthefollowingpaymentscollectedbytheGroupfromthelesseeforthetransferoftherighttousetheunderlyingassetsduringtheleaseterm:

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

lesseewillexercisetheoption.?paymentsforterminatingthelease,providedthattheleasetermreflectsthatthelesseewill

exercisetheoptiontoterminatethelease;?residualvalueofguaranteeprovidedtotheGroupbythelessee,apartyrelatedtothelessee

andanindependentthirdpartywiththefinancialabilitytofulfiltheguaranteeobligations.Variableleasereceiptsnotincludedinthenetleaseinvestmentarerecognizedinprofitorlosswhentheyareactuallyincurred.InterestincomeforeachperiodovertheleasetermiscalculatedandrecognizedbytheGroupatafixedperiodicrate.

31.2.3SubleasesAsthelessorofasublease,theGroupaccountsfortheoriginalleasecontractandthesubleasecontractonaseparatebasis.TheGroupclassifiesthesubleasesbasedontheright-of-useassetsgeneratingfromtheoriginalleaseratherthantheunderlyingassetsoftheoriginallease.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

31.Leases-continued

31.2TheGroupaslessor-continued

31.2.4LeasemodificationsTheGroupaccountsforamodificationtoanoperatingleaseasanewleasefromtheeffectivedateofthemodification,consideringanyleaseadvancesorreceivablesrelatingtotheoriginalleaseastheleasereceiptsforthenewlease.Aleasemodificationshouldbeaccountedforasaseparateleaseifthereisamodificationinafinanceleaseandbothofthefollowingsapply:

?themodificationincreasesthescopeoftheleasebyaddingtherighttouseoneormore

underlyingassets;and?theconsiderationfortheleaseincreasesbyanamountcommensuratewiththestand-alone

pricefortheincreaseinscopewithanyappropriateadjustmenttothatstand-aloneprice.Foramodificationtoafinanceleasethatisnotaccountedforasaseparatelease,theGroupaccountsforthemodificationasfollows:

?Iftheleasewouldhavebeenclassifiedasanoperatingleasehadthemodificationbeen

effectiveatthecommencementdate,theGroupshouldaccountfortheleasemodificationas

anewleasefromtheeffectivedateofthemodification,andmeasurethecarryingamountof

theunderlyingassetsattheamountequaltothenetleaseinvestmentbeforetheeffective

dateofthemodification;?Iftheleasewouldhavebeenclassifiedasafinanceleasehadthemodificationbeeneffective

atthecommencementdate,theGroupshouldaccountforitinaccordancewiththe

provisionsoncontractmodificationandrenegotiationunderAccountingStandardsfor

BusinessEnterprisesNo.22--FinancialInstruments:RecognitionandMeasurement.

31.2.5SaleandleasebacktransactionsTheGroupasthebuyer-lessorIfthetransferofanassetinasaleandleasebacktransactiondoesnotconstituteasale,theGroupdoesnotrecognizethetransferredassetbutafinancialassetatanamountequaltothetransferproceeds,andaccountsforsuchfinancialassetundertheAccountingStandardsforBusinessEnterprisesNo.22--FinancialInstruments:RecognitionandMeasurement.Ifthetransferofanassetconstitutesasale,theGroupaccountsforthepurchaseoftheassetinaccordancewithotherapplicableAccountingStandardsforBusinessEnterprisesandaccountsfortheleaseoftheasset.

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(IV)SIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTINGESTIMATES-continued

32.SafetyproductioncostAccordingtotheAdministrativeMeasuresfortheCollectionandUtilizationofEnterpriseWorkSafetyFunds(CaiZi[2022]No.136)jointlyissuedbytheMinistryofFinanceandtheEmergencyDepartmenton13December2022,safetyproductioncostsetasidebytheGroupisdirectlyincludedinthecostofrelevantproductsorrecognizedinprofitorlossfortheperiod,andtransferredtospecificreservesimultaneously.Whensafetyproductioncostsetasideisutilized,ifthecostsincurredcanbecategorizedasexpenditure,thecostsincurredshouldbechargedagainstthespecificreserve.Ifthecostssetasideareusedtobuildupfixedassets,thecostsshouldbechargedtoconstructioninprogress,andreclassifiedtofixedassetswhenthesafetyprojectsarereadyforintendeduse.Meantime,expendituresinbuildingupfixedassetsaredirectlychargedagainstthespecificreservewiththeaccumulateddepreciationrecognizedatthesameamount.Depreciationwillnotbemadeinthefutureperiodonsuchfixedassets.

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

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(V)CRITICALJUDGMENTSINAPPLYINGACCOUNTINGPOLICIESANDKEY

ASSUMPTIONSANDUNCERTAINTIESINACCOUNTINGESTIMATESIntheapplicationofaccountingpoliciesandaccountingestimatesassetoutinNoteIV,theGroupisrequiredtomakejudgments,estimatesandassumptionsaboutthecarryingamountsofitemsinthefinancialstatementsthatcannotbemeasuredaccurately,duetotheinternaluncertaintyoftheoperatingactivities.Thesejudgments,estimatesandassumptionsarebasedonhistoricalexperienceoftheGroup'smanagementaswellasotherfactorsthatareconsideredtoberelevant.Actualresultsmaydifferfromtheseestimates.TheGroupregularlyreviewsthejudgments,estimatesandassumptionsonagoingconcernbasis.Changesinaccountingestimateswhichonlyaffectthecurrentperiodshouldberecognizedinthecurrentperiod;changeswhichnotonlyaffectthecurrentbutthefutureperiodsshouldberecognizedinthecurrentandfutureperiods.

1.Keyassumptionsanduncertaintiesusedinimportantjudgmentsandaccounting

estimatesAtthebalancesheetdate,keyassumptionsanduncertaintiesincriticaljudgmentsandaccountingestimatesthatarelikelytoleadtosignificantadjustmentstothecarryingamountsofassetsandliabilitiesinthefutureareasfollows:

1.1GoodwillimpairmentThebookvalueofgoodwillon30June2025is6,233,179,553.36.TheGroupwillconductimpairmenttestingongoodwillatleastannually.Forthepurposeofimpairmenttesting,therecoverableamountofeachassetsgroupandcombinationofassetsgroupsthatgenerategoodwilloftheGroupisdeterminedbyfairvaluelessestimateddisposalexpensesandbythepresentvalueofestimatedfuturecashflows,whichinvolvethejudgmentofmanagement.

1.2RecognitionofdeferredincometaxTheGroupcalculatesandmakesprovisionfordeferredtaxliabilitiesaccordingtotheprofitdistributionplansofsubsidiaries,associatesandjointventuresandrelevantprovisionsoftaxlaw.Forretainedearningsoftheinvesteewhicharenotexpectedtobedistributed,sincetheprofitswillbeusedforthedailyoperationandfuturedevelopmentoftheinvestee,nodeferredtaxliabilitiesarerecognized.Iftheprofitstobeactuallydistributedinfutureyearsaremoreorlessthanthoseexpected,correspondingdeferredtaxliabilitieswillberecognizedorreversedinprofitorlossfortheperiodattheearlierofthedateonwhichtheprofitdistributionplanischangedandthedateonwhichtheprofitdistributionisdeclared.Deferredtaxassetsarerecognizedbasedonthedeductibletemporarydifferencesandthecorrespondingtaxrate,totheextentthatitisprobablethatfuturetaxableprofitswillbeavailableagainstwhichthedeductibletemporarydifferencescanbeutilized.Iftheactualtaxableincomeinfutureyearsaremoreorlessthanthatexpected,correspondingdeferredtaxassetswillberecognizedorreversedinprofitorlossfortheperiodinwhichtheyareactuallyincurred.

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(V)CRITICALJUDGMENTSINAPPLYINGACCOUNTINGPOLICIESANDKEY

ASSUMPTIONSANDUNCERTAINTIESINACCOUNTINGESTIMATES-continued

1.Keyassumptionsanduncertaintiesusedinimportantjudgmentsandaccounting

estimates-continued

1.3EstimatedusefullivesandresidualvalueoffixedassetsandintangibleassetsTheGroupassessestheestimatedusefullivesandresidualvalueoffixedassetsandintangibleassets.Suchestimateismadebyreferencetothehistoricalexperienceofactualusefullivesandresidualvalueoffixedassetsandintangibleassetsofsimilarnatureandfunction,andissubjecttosignificantchangesduetotechnicalinnovationandfierceindustrycompetition.Wheretheestimatedusefullivesandresidualvalueoffixedassetsandintangibleassetsarelessthanthepreviousestimates,theGroupwillincreasethedepreciationandamortization,orwriteofforeliminatethetechnicallyobsoletefixedassetsorintangibleassets.(VI)CHANGESINSIGNIFICANTACCOUNTINGPOLICIESANDACCOUNTING

ESTIMATESTherearenosignificantaccountingpoliciesoraccountingchangesfortheperiod.

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(VII)TAXES

1.Majortaxesandtaxrates

CHINAMERCHANTSPORTGROUPCO.,LTD.Taxes

TaxesTaxbasisTaxrate
EnterpriseincometaxTaxableincome8.25%-34%(Note1)
Dividendincometax5%,10%(Note2)
Value-addedtax(Note3)(hereinafterreferredtoas"VAT")Incomefromsaleofgoods9%,13%
Incomefromtransportation,loadingandunloadingbusinessandpartofmodernserviceindustries6%
Incomefromsaleofrealestate,propertymanagement,leaseofrealestate,etc.3%,5%,9%
Incomefromleasesofmovableproperties13%
Socialcontributiontax(Note4)Income0.65%-7.6%
DeedtaxLanduserightandpropertytransferamount3%-5%
Propertytax70%ofcostofpropertyorrentalincome1.2%or12%
CitymaintenanceandconstructiontaxVATpaid5%-7%
EducationsurtaxVATpaid3%
LandusetaxLandareaactuallyoccupiedRMB1-8persquaremeter
EnvironmentalprotectiontaxAmountofpollutionequivalentsofthetaxableairpollutantsconvertedbasedonthequantityofpollutionsdischargedRMB1.2-RMB1.8perpollutionequivalent

Note1:TheGroup'senterpriseincometaxiscalculatedbasedonthecurrenttaxratestipulated

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

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

outputtaxiscalculatedinaccordancewiththesalesincomeandthecorrespondingtaxratestipulatedintherelevanttaxlawsofChina.

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(VII)TAXES-continued

1.Majortaxesandtaxrates-continuedNote4:ThesocialcontributiontaxisthetaxpaidbyTCPParticipa??esS.A.(hereinafter

referredtoas"TCP"),anoverseassubsidiaryoftheGroup,tothelocalgovernment.

2.TaxpreferenceandapprovaldocumentsCertainsubsidiariesoftheGroupinChinaarerecognizedashigh-techenterprisesorencouragedindustrialenterprisesintheregionandaresubjecttoanenterpriseincometaxrateof15%.SomeofGroup'ssomesubsidiariesinsideofChinamaypaycorporateincometaxattherateof15%accordingtothepreferentialpoliciesofQianhaiShenzhenHongKongModernServiceIndustryCooperationZone.CertainsubsidiariesoftheGroupinChinaaresmallandmicroenterprisesandaresubjecttoapreferentialtaxrateof20%.InaccordancewiththeAnnouncementonRelevantTaxandFeePoliciesforFurtherSupportingtheDevelopmentofMicroandSmallEnterprisesandIndividualIndustrialandCommercialHouseholds(AnnouncementNo.12oftheMinistryofFinanceandtheStateAdministrationofTaxationin2023),forsmallandmicroenterprises,thetaxableincomeiscalculatedatareducedrateof25%andtheenterpriseincometaxispaidatarateof20%from1January2023and31December2027.SomesubsidiariesoftheGroupoutsideChinacanreduceorexemptcorporateincometaxaccordingtorelevantlocaltaxpolicies.From1January2023to31December2027,theurbanlandusetaxforcertaindomesticsubsidiariesoftheGrouponthelandforbulkcommoditystoragefacilitiesisleviedatthereducedrateof50%ofthetaxamountapplicabletothegradeoftheland.AsapprovedbyTaxServiceofShenzhenQianhaiShenzhen-HongKongModernServiceIndustryCooperationZone,StateTaxationAdministration(formerly"ShekouTaxService,ShenzhenTaxService,StateTaxationAdministration")on12October2017,certainsubsidiariesoftheGroupareexemptedfromVATforauxiliarylogisticsservices(excludingwarehousingservicesanddeliveryservices)providedtooverseasenterprises.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS

1.Cashandbankbalances

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item30/06/202531/12/2024
OriginalCurrencyExchangerateRMBOriginalCurrencyExchangerateRMB
Cash————179,448.28————457,486.90
Including:RMB-1.0000-300.001.0000300.00
USD1,377.637.16689,873.221,327.587.18849,543.18
HKD3,954.100.91303,610.026,354.100.92605,884.15
Others117,839,980.72-165,965.04161,212,970.72-441,759.57
Bankdeposits————11,972,224,908.99————11,769,350,938.86
Including:RMB7,578,130,790.741.00007,578,130,790.747,922,930,866.841.00007,922,930,866.84
USD512,333,387.477.16683,671,790,921.74328,306,260.167.18842,359,996,720.94
HKD243,994,307.900.9130222,761,923.21764,174,676.630.9260707,656,317.54
EUR5,091,028.138.322442,369,572.503,955,241.687.525729,765,962.32
GBP60,694.099.7545592,040.5068,592.099.0765622,576.10
AUD2,250,221.564.651010,465,780.484,590,999.434.507020,691,634.43
Others376,177,501,442.89-446,113,879.82340,388,882,836.85-727,686,860.69
Othercashandbankbalances————119,344,416.10————114,600,721.02
Including:RMB79,590,451.171.000079,590,451.1774,726,938.791.000074,726,938.79
HKD283.500.9130258.83283.500.9260262.53
Others1,622,193,641.17-39,753,706.101,622,193,641.17-39,873,519.70
Cashdepositedinthefinancecompany2,904,541,481.791.00002,904,541,481.794,745,991,554.351.00004,745,991,554.35
Total————14,996,290,255.16————16,630,400,701.13
Including:Totalamountoffundsdepositedoverseas6,508,541,644.945,449,122,430.53

(1)TheinterestreceivableattheendoftheperiodamountedtoRMB33,585,496.90.

(2)Cashdepositedinthefinancecompanyincludedtheinterestreceivableamountingto

RMB8,141,591.81.

(3)Restricteduseofcashatbankandonhandattheendoftheperiod.

Item30/06/202531/12/2024Reasonsforrestricteduse
Interestreceivable41,727,088.7170,691,916.54Notactuallyreceived
Performancebond40,440,906.1041,064,199.70Notavailableforwithdrawalatanytime
Litigationfreezingfunds9,351,403.601,826,085.98Notavailableforwithdrawalatanytime
Guaranteedeposit200,000.00200,000.00Notavailableforwithdrawalatanytime
ETCcardfrozenfunds12,750.0012,750.00Notavailableforwithdrawalatanytime
Billdeposit-1,536,194.00Notavailableforwithdrawalatanytime
Total91,732,148.41115,331,146.22

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

2.Financialassetsheldfortrading

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
FinancialassetsclassifiedasatFVTPL4,833,561,128.785,685,135,472.01
Including:Structureddeposits4,833,561,128.785,685,135,472.01
Total4,833,561,128.785,685,135,472.01

3.Billsreceivable

(1)Categoryofbillsreceivable

Category30/06/202531/12/2024
Bankacceptance181,745,578.07263,127,883.63
Commercialacceptance-7,000,000.00
Total181,745,578.07270,127,883.63

Note:Fortheperiodfrom1Januaryto30June2025,noprovisionforbaddebtsofbills

receivableisassessedonanindividualbasisand,theacceptorofbankacceptanceandcommercialacceptanceforwhichprovisionforbaddebtsisassessedonaportfoliobasishashighcreditratingswithnosignificantcreditrisks,therefore,noprovisionforbaddebtsismade.

(2)Asat30June2025,theGrouphasnobillsreceivablepledged.

(3)Asat30June2025,billsreceivableendorsedordiscountedbytheGroupandnotyetdue

onthebalancesheetdate.

ItemAmountderecognizedattheendoftheperiodUnrecognizedamountattheendoftheperiod
Bankacceptance105,963,512.855,183,481.26

(4)Asat30June2025,theGrouphasnobillstransferredtoaccountsreceivableduetothe

drawer'sfailuretoperform.

(5)Fortheperiodfrom1Januaryto30June2025,therewerenonotesreceivablewrittenoff.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

4.Accountsreceivable

(1)Overallsituationofaccountsreceivable

CHINAMERCHANTSPORTGROUPCO.,LTD.Category

Category30/06/202531/12/2024
Accountsreceivable2,326,006,308.481,282,371,828.87
Less:Provisionforbaddebts84,824,053.4788,963,445.09
Total2,241,182,255.011,193,408,383.78

(2)Aginganalysisofaccountsreceivable

Aging30/06/202531/12/2024
BookvalueProportion(%)ProvisionforbaddebtsBookvalueProportion(%)Provisionforbaddebts
Within1year(Including1year)2,229,699,788.5095.863,139,736.921,184,171,645.4592.343,052,874.64
1-2years(Including2years)20,811,914.160.899,706,947.2125,773,736.312.0115,217,006.15
2-3years(Including3years)19,283,838.140.8316,074,997.3618,788,751.531.4717,375,034.32
Morethan3years56,210,767.682.4255,902,371.9853,637,695.584.1853,318,529.98
Total2,326,006,308.48100.0084,824,053.471,282,371,828.87100.0088,963,445.09

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

4.Accountsreceivable-continued

(3)Disclosureofaccountsreceivablebycategory

CHINAMERCHANTSPORTGROUPCO.,LTD.

Creditrating

CreditratingExpectedcreditlossrate(%)BookvalueProvisionforbaddebtsCarryingamountReasonforprovision
AgingTotalAgingTotal
Within1year1-2years2-3yearsMorethan3yearsWithin1year1-2years2-3yearsMorethan3years
A0.00-0.101,565,532,354.805,493,143.72114,795.64113,842.131,571,254,136.29146,907.37385,135.6829,486.38113,842.13675,371.561,570,578,764.73Accruedaccordingtotheexpectedlossrateofeachrating
B0.10-0.30567,560,749.974,036,096.701,247,066.84297,562.97573,141,476.4841,659.77186,340.72186,935.27292,162.97707,098.73572,434,377.75Accruedaccordingtotheexpectedlossrateofeachrating
C0.30-50.0091,913,836.682,764,467.38109,670.65574,343.8395,362,318.54397,552.331,227,962.7627,935.29574,343.832,227,794.2193,134,524.33Accruedaccordingtotheexpectedlossrateofeachrating
D50.00-100.004,692,847.058,518,206.3617,812,305.0155,225,018.7586,248,377.172,553,617.457,907,508.0515,830,640.4254,922,023.0581,213,788.975,034,588.20Lowprobabilityofrecovery
Total2,229,699,788.5020,811,914.1619,283,838.1456,210,767.682,326,006,308.483,139,736.929,706,947.2116,074,997.3655,902,371.9884,824,053.472,241,182,255.01

Including:Provisionforbaddebtsattheendoftheperiodassessedonanindividualbasis:

Name30June2025Reasonforprovision
BookvalueProvisionforbaddebtsExpectedcreditlossrate(%)
Client124,908,308.4424,908,308.44100.00Lowprobabilityofrecovery
Client214,965,689.9814,965,689.98100.00Lowprobabilityofrecovery
Client36,215,522.196,215,522.19100.00Lowprobabilityofrecovery
Client45,700,298.865,700,298.86100.00Lowprobabilityofrecovery
Client54,828,983.864,828,983.86100.00Lowprobabilityofrecovery
Others29,629,573.8424,594,985.6483.01——
Total86,248,377.1781,213,788.97——

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

4.Accountsreceivable-continued

(4)Measurementofexpectedcreditlossatanamountequivalenttothelifetimeexpected

creditloss

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)Total
Asat1January20252,504,836.6886,458,608.4188,963,445.09
Bookvalueofaccountsreceivableasat1January2025
-Transfertocredit-impairedaccountsreceivable---
-Reversalofaccountsreceivablethatarenotcredit-impaired---
Provisionfortheperiod1,419,529.15-1,419,529.15
Reversalfortheperiod-603,439.71-6,556,669.83-7,160,109.54
Effectofchangesinthescopeofconsolidation---
Transfer-outduetoderecognitionoffinancialassets(includingdirectwrite-down)---
Otherchanges289,338.381,311,850.391,601,188.77
Asat30June20253,610,264.5081,213,788.9784,824,053.47

(5)Fortheperiodfrom1Januaryto30June2025,theGrouphasnosignificantprovisionfor

baddebtsrecoveredorreversedthisperiod.

(6)Fortheperiodfrom1Januaryto30June2025,theGrouphasnowritten-offofaccounts

receivableinthisperiod.

(7)Thetopfivebalancesofaccountsreceivableattheendoftheperiodclassifiedbydebtor

NameofentityRelationshipwiththeGroupBookvalueAgingProvisionforbaddebtsProportionoftheamounttothetotalaccountsreceivable(%)
Client6Thirdparty732,884,774.43Within1year,1-2years141,682.4131.51
Client7Thirdparty149,524,160.90Within1year,1-2years176,186.636.43
Client8Thirdparty79,696,696.25Within1year39,820.463.43
Client9Thirdparty64,686,721.60Within1year-2.78
Client10Thirdparty50,855,496.64Within1year66,162.102.19
Total1,077,647,849.82423,851.6046.34

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

5.Prepayments

(1)Aginganalysisofprepayments

CHINAMERCHANTSPORTGROUPCO.,LTD.

Aging

Aging30/06/202531/12/2024
BookvalueProportion(%)ImpairmentprovisionBookvalueProportion(%)Impairmentprovision
Within1year(including1year)91,742,618.8299.15-58,397,947.0198.69-
1-2years(including2year)516,113.310.56-620,707.851.05-
2-3years(including3year)196,252.770.21-8,000.000.01-
Morethan3years70,854.950.08-150,462.360.25-
Total92,525,839.85100.00-59,177,117.22100.00-

(2)Asat30June2025,theGrouphasnosignificantprepaymentsagedmorethanoneyear.

(3)Thetopfivebalancesofprepaymentsattheendoftheperiodclassifiedbyentities

NameofentityRelationshipwiththeCompany30/06/2025AgingProportionintotalprepayments(%)Provisionforbaddebts
Supplier1Thirdparty16,057,439.85Within1year17.35Unsettledprepaymentforlegalfees
Supplier2Thirdparty12,842,302.68Within1year13.88Unsettledprepaymentforpremium
Supplier3Thirdparty5,240,732.18Within1year5.66Unsettledprepaymentformaterials
Supplier4Thirdparty4,913,349.78Within1year5.31Unsettledprepaymentforpremium
Supplier5Thirdparty3,285,000.04Within1year3.55Unsettledadvancepurchasepayment
Total42,338,824.5345.75

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

6.Otherreceivables

6.1Presentationofotherreceivables

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
Dividendsreceivable1,247,854,681.90554,387,723.94
Otherreceivables603,562,362.08612,111,619.96
Total1,851,417,043.981,166,499,343.90

6.2Dividendsreceivable

(1)Presentationofdividendsreceivablebyaging

Nameofinvestee30/06/202531/12/2024Reasonfornon-recoveryWhetherthereisimpairmentanditsjudgmentbasis
Dividendsreceivablewithanagingwithin1year1,057,022,340.92436,240,220.68————
Including:————————
ShanghaiInternationalPort(Group)Co.,Ltd.(hereinafterreferredtoas"ShanghaiPortGroup")947,040,362.53326,565,642.25——No
LiaoningPortCo.,Ltd.(hereinafterreferredtoas"LiaoningPort")64,862,336.45-——No
ChinaNanshanDevelopment(Group)Incorporation(hereinafterreferredtoas"NanshanGroup")37,014,000.0074,028,000.00——No
TianjinPortContainerTerminalCo.,Ltd.4,277,111.77-——No
Tin-canIslandContainerTerminalLtd.2,638,420.91-——No
Euro-AsiaOceangateS.àr.l..-23,881,469.17————
ChinaOceanShippingAgencyShenzhenCo.,Ltd.-10,575,000.00————
Others1,190,109.261,190,109.26——No
Dividendsreceivablewithanagingofmorethanoneyear192,081,444.77118,702,445.93————
Including:————————
NanshanGroup148,056,000.0074,028,000.00RelevantproceduresarebeinghandledandpastdividendsarebeingpaidinsuccessionNo
ZhanjiangMerchantsPortCityInvestmentCo.,Ltd.(hereinafterreferredtoas"MerchantsPortCity")38,809,044.7738,809,044.77LackoffundsNo
COSCOLogistics(Zhanjiang)Co.,Ltd.5,000,000.005,649,001.16Lackoffunds,andpaymentismadeininstallmentsNo
Others216,400.00216,400.00LackoffundsNo
Sub-total1,249,103,785.69554,942,666.61————
Less:Provisionforbaddebts1,249,103.79554,942.67————
Total1,247,854,681.90554,387,723.94————

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

6.Otherreceivables-continued

6.2Dividendsreceivable-continued

(2)Changesinprovisionforcreditlossofdividendsreceivable

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemStage1Stage2Stage3Total
12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)
Asat1January2025554,942.67--554,942.67
Balanceat1January2025
-TransfertoStage2----
-TransfertoStage3----
-ReversetoStage2----
-ReversetoStage1----
Provisionfortheperiod694,161.12--694,161.12
Reversalfortheperiod----
Asat30June20251,249,103.79--1,249,103.79

(3)Detailsofprovisionforbaddebts

Category31/12/2024Changesfortheperiod30/06/2025
ProvisionRecoveryorreversalCharge-offorwrite-offOtherchanges
Provisionforbaddebtsassessedonanindividualbasis------
Provisionforbaddebtsassessedonaportfoliobasis554,942.67694,161.12---1,249,103.79
Total554,942.67694,161.12---1,249,103.79

6.3Otherreceivables

(1)Aginganalysisofotherreceivables

Aging30/06/202531/12/2024
BookvalueProportion(%)ProvisionforbaddebtsBookvalueProportion(%)Provisionforbaddebts
Within1year(including1year)284,105,426.0023.23278,269.39270,686,270.9223.005,873.33
1-2years(including2year)10,977,961.440.901,417,276.3934,852,514.762.961,639,836.84
2-3years(including3year)65,698,137.855.372,931,409.20254,724,777.7421.64182,279,617.60
Morethan3years862,423,395.1770.50615,015,603.40616,886,752.7752.40381,113,368.46
Total1,223,204,920.46100.00619,642,558.381,177,150,316.19100.00565,038,696.23

(2)Disclosureofotherreceivablesbynature

Item30/06/202531/12/2024
Operationcompensation(Note1)566,875,166.05512,608,434.72
Advancepayment272,423,254.79227,885,870.03
Landcompensation(Note2)147,262,369.00197,262,369.00
Securitydeposit38,315,601.3328,631,566.40
Specialsubsidiescollectedonbehalf19,779,450.0019,779,450.00
Others178,549,079.29190,982,626.04
Sub-total1,223,204,920.461,177,150,316.19
Less:Provisionforbaddebts619,642,558.38565,038,696.23
Total603,562,362.08612,111,619.96

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

6.Otherreceivables-continued

6.3Otherreceivables-continued

(2)Disclosureofotherreceivablesbynature-continuedNote1:ItistheoperatingcompensationthatthesubsidiaryoftheCompanyshallcollectfrom

theholdingcompanyofitsnon-controllingshareholdersaccordingtotheagreement.Asat30June2025,theGrouphasaccumulatedthecompensationthathasnotbeenreceived,whichisequivalenttoRMB566,875,166.05.Theprovisionforbaddebtshavebeenfullywithdrawn.Note2:On9October2021,ZhanjiangPort(Group)Co.,Ltd.(hereinafterreferredtoas

"ZhanjiangPort"),asubsidiaryoftheCompany,signedtheAgreementontheRecoveryofStateownedLandUseRightswithlocalgovernmentagencies,whichstipulatesthatZhanjiangPortwillreturn195.68muoflandlocatedinZhanjiangComprehensiveBondedZone,eastofShugangAvenue,tolocalgovernmentagenciesatapriceofRMB89,630,000.00.Theabovelandhasbeenhandedoverbefore31December2021.Asat30June2025,theabovelandcompensationofRMB89,630,000.00hasnotbeenrecovered.On4September2024,ZhanjiangPortsignedtheAgreementontheRecoveryofStateownedLandUseRightswithlocalgovernmentagencies,whichstipulatesthatZhanjiangPortwillreturn146,970.20squaremetersoflandandassetsonthegroundlocatedinthenorthofXiashanPortDistrictofZhanjiangtolocalgovernmentagenciesatapriceofRMB107,632,369.00.Theabovelandandabovegroundassetshavebeentransferredbefore18September2024.Asat30June2025,theabovelandcompensationofRMB50,000,000.00hasbeenrecovered,theremaininglandcompensationofRMB57,632,369.00hasnotbeenrecoveredyet.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

6.Otherreceivables-continued

6.3Otherreceivables-continued

(3)Provisionforcreditlossofotherreceivables

CHINAMERCHANTSPORTGROUPCO.,LTD.Creditrating

CreditratingExpectedcreditlossrate(%)30/06/202531/12/2024
12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)Total12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)Total
A0.00-0.10490,765,708.77--490,765,708.77499,361,668.36--499,361,668.36
B0.10-0.30--------
C0.30-50.00--------
D50.00-100.00--732,439,211.69732,439,211.69--677,788,647.83677,788,647.83
Bookvalue490,765,708.77-732,439,211.691,223,204,920.46499,361,668.36-677,788,647.831,177,150,316.19
Provisionforbaddebts8,890.83-619,633,667.55619,642,558.3813,957.42-565,024,738.81565,038,696.23
Carryingamount490,756,817.94-112,805,544.14603,562,362.08499,347,710.94-112,763,909.02612,111,619.96

Significantotherreceivablesforwhichprovisionforbaddebtsisassessedonanindividualbasis(creditratingofD)

Nameofentity30/06/2025ProvisionforbaddebtsECLrate(%)Reasonforprovision
Entity11566,875,166.05566,875,166.05100.00Expectedtobeunrecoverable(Note)
Entity12122,569,018.039,854,263.088.04Nospecificpaymentplan
Entity1314,000,000.0014,000,000.00100.00Expectedtobeunrecoverable
Total703,444,184.08590,729,429.13

Note:RefertoNoteVIII.6.3(2).

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

6.Otherreceivables-continued

6.3Otherreceivables-continued

(4)Provisionforbaddebts

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemStage1Stage2Stage3Total
12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)
Asat1January202513,957.42-565,024,738.81565,038,696.23
Balanceofotherreceivablesat1January2025
-TransfertoStage2----
-TransfertoStage3----
-ReversetoStage2----
-ReversetoStage1----
Provisionfortheperiod137.50-272,367.56272,505.06
Reversalfortheperiod-5,186.72---5,186.72
Effectofchangesinthescopeofconsolidation----
Charge-offfortheperiod----
Write-offfortheperiod----
Otherchanges-17.37-54,336,561.1854,336,543.81
Asat30June20258,890.83-619,633,667.55619,642,558.38

(5)TheGrouphasnosignificantprovisionforbaddebtsrecoveredorreversedthisperiod.

(6)TheGrouphasnootherreceivablesactuallywrittenoffthisperiod.

(7)Thetopfivebalancesofotherreceivablesattheendoftheperiodclassifiedbydebtor

NameofentityRelationshipwiththeGroupBookvalueAgingProportiontototalotherreceivables(%)ProvisionforcreditimpairmentattheendoftheperiodNature
Entity11Non-relatedparty566,875,166.05Morethan3years46.34566,875,166.05Operationcompensation
Entity14Non-relatedparty147,262,369.00Within1year,morethan3years12.04-Landcompensation
Entity12Non-relatedparty122,569,018.032-3years,morethan3years10.029,854,263.08Advancedpayments
Entity15Associatedenterprise36,847,872.801-2years,morethan3years3.01-Loan
Entity16Relatedparty28,124,753.36Within1year,2-3years2.30-Advancedpayments
Total901,679,179.2473.71576,729,429.13

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

7.Inventories

(1)Inventoriesbycategory

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
BookvalueProvisionforimpairmentofinventoriesCarryingamountBookvalueProvisionforimpairmentofinventoriesCarryingamount
Rawmaterials311,130,210.011,144,560.02309,985,649.99261,972,849.281,153,436.72260,819,412.56
Finishedgoods4,740,217.77-4,740,217.774,683,965.30-4,683,965.30
Others1,179,020.94-1,179,020.944,454,642.48-4,454,642.48
Total317,049,448.721,144,560.02315,904,888.70271,111,457.061,153,436.72269,958,020.34

(2)Provisionforimpairmentofinventories

Category1/1/2025IncreaseDecreaseEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025
ProvisionOthersReversalorcharge-offOthers
Rawmaterials1,153,436.72--1,621.20--7,255.501,144,560.02

Provisionfordeclineinvalueofinventoriesismadeonanitem-by-itembasisandnoprovisionfordeclineinvalueofinventoriesismadeonaportfoliobasis.Thereasonforthewrite-offofprovisionforimpairmentofinventoriesinthisperiodistherecoveryofvalue.

(3)Asat30June2025,theGrouphasnocapitalizedborrowingcostinthebalanceof

inventories.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

8.Non-currentassetsduewithinoneyear

(1)Presentationofnon-currentassetsduewithinoneyear

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
Long-termreceivablesduewithinoneyear35,033,573.8235,033,025.11
Less:Provisionforbaddebts35,033.5735,033.03
Carryingamount34,998,540.2534,997,992.08

9.Othercurrentassets

Item30/06/202531/12/2024
Prepaidtaxes134,541,661.39140,440,401.53
InputVATtobedeductedandcertified101,311,382.93110,187,182.64
Others43,854.651,070,228.60
Sub-total235,896,898.97251,697,812.77
Less:Provisionforimpairment--
Total235,896,898.97251,697,812.77

10.Long-termreceivables

(1)Detailsoflong-termreceivables

Item30/06/202531/12/2024Rangeofdiscountrateattheendofperiod
BookvalueProvisionforbaddebtsCarryingamountBookvalueProvisionforbaddebtsCarryingamount
Landcompensationreceivable(Note2)2,641,932,000.00-2,641,932,000.002,641,932,000.00-2,641,932,000.00
Advancestoshareholders(Note1)1,255,266,775.791,255,266.781,254,011,509.011,169,988,750.651,169,988.751,168,818,761.903.00%-8.42%
Guaranteesforfinanceleases1,474,337.361,474.331,472,863.031,453,195.681,453.201,451,742.484.4%
Others169,062.40-169,062.40169,062.40-169,062.40
Total3,898,842,175.551,256,741.113,897,585,434.443,813,543,008.731,171,441.953,812,371,566.78
Less:Long-termreceivablesduewithin1year35,033,573.8235,033.5734,998,540.2535,033,025.1135,033.0334,997,992.08
Long-termreceivablesdueafter1year3,863,808,601.731,221,707.543,862,586,894.193,778,509,983.621,136,408.923,777,373,574.70

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

10.Long-termreceivables-continuedNote1:ItmainlyrepresentstheaggregateprincipalandinterestreceivablefromPortof

NewcastleandTerminalLinkSAS,equivalenttoRMB985,036,038.69andRMB234,709,770.32,respectively.On14June2018,ChinaMerchantsPortHoldingsCompany(hereinafterreferredtoas"CMPort"),asubsidiaryoftheCompany,providedalong-termloantoPortofNewcastle,whichsignedin2023andhasbeenextendedto31December2034.TheloancarriesinterestatarateofweightedaverageinterestrateondebtasdeterminedbylocalauthorityofPortofNewcastleplus0.5%.On31May2023,CMPort,asubsidiaryoftheCompany,providedalong-termloantoTerminalLinkSASformakingadditionalcapitalinjectiontoSaigangprojectandchargedinteresttoTerminalLinkSASataninterestrateof6.15%.Note2:On5November2019,ShantouCMPortGroupCo.,Ltd.(hereinafterreferredtoas

"ShantouPort"),asubsidiaryoftheCompanyenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately

370.96mulocatedinZhuchiDeepwaterPortonthesouthofZhongshanEastRoadofShantoushouldbereturnedtoShantouLandReserveCenterbyShantouPort,whichisamountingtoRMB1,558,032,000.00.Amongthem,183.63muoflandandattachedbuildingshavebeentransferredin2019,andtheremaining187.33muoflandandattachedbuildingshavebeentransferredin2020.Asat30June2025,thelandcompensationofRMB1,158,032,000.00hasnotyetbeenrecovered.On21August2020,ShantouPortandShantouHaojiangDistrictLandReserveCentersignedtheShantouCityStateownedLandUseRightPurchaseContract,whichstipulatesthatShantouPortwillhandback152.34muoflandandattachedbuildingslocatedinWutianFarm,Yushi,HaojiangDistrict,ShantouCitytoShantouHaojiangDistrictLandReserveCenteratapriceofRMB250,000,000.00.Theabovelandandattachedbuildingshavebeenhandedoverbefore31December2020.Asat30June2025,thelandcompensationofRMB200,000,000.00hasnotyetbeenrecovered.On22December2020,ShantouPortenteredintotheContractfortheAcquisitionofState-OwnedLandUseRightsinShantouwithShantouLandReserveCenter.Pursuanttothecontract,thelandandattachedbuildingsofapproximately648.78mulocatedinZhuchiDeepwaterPortofShantoushouldbereturnedtoShantouLandReserveCenterbyShantouPort,whichisamountingtoRMB2,724,876,000.00.Amongthem,320muoflandandattachedbuildingsweretransferredby31December2020,whichisamountingtoRMB1,344,000,000.00,andtheremaining328.78muoflandandattachedbuildingshavenotbeentransferred.Asat30June2025,thelandcompensationofRMB1,283,900,000.00hasnotyetbeenrecovered.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

10.Long-termreceivables-continued

(2)Long-termreceivablesdisclosedbymethodofprovisionforbaddebts

CHINAMERCHANTSPORTGROUPCO.,LTD.Category

Category30June202531December2024
BookvalueProvisionforbaddebtsCarryingamountBookvalueProvisionforbaddebtsCarryingamount
AmountProportion(%)AmountProportion(%)AmountProportion(%)AmountProportion(%)
Provisionforbaddebtsassessedonaportfoliobasis3,898,842,175.55100.001,256,741.110.033,897,585,434.443,813,543,008.73100.001,171,441.950.033,812,371,566.78
Total3,898,842,175.55100.001,256,741.113,897,585,434.443,813,543,008.73100.001,171,441.953,812,371,566.78

Provisionforbaddebtsassessedonaportfoliobasis

Creditrating30June2025
AccountsreceivableProvisionforbaddebtsProportion(%)
A3,898,842,175.551,256,741.110.03
Total3,898,842,175.551,256,741.11

(3)Provisionforbaddebtsoflong-termreceivables

ItemStage1Stage2Stage3Total
12-monthexpectedcreditlossLifetimeexpectedcreditloss(notcredit-impaired)Lifetimeexpectedcreditloss(credit-impaired)
Asat1January20251,171,441.95--1,171,441.95
Bookvalueoflong-termreceivablesasat1January2025
-TransfertoStage2----
-TransfertoStage3----
-ReversetoStage2----
-ReversetoStage1----
Provisionfortheperiod85,311.89--85,311.89
Reversalfortheperiod-12.73---12.73
Charge-offfortheperiod----
Write-offfortheperiod----
Otherchanges----
Asat30June20251,256,741.11--1,256,741.11

(4)Detailsofprovisionforbaddebts

Category01/01/2025Changesfortheperiod30/06/2025
ProvisionRecoveryorreversalCharge-offorwrite-offEffectofchangesinthescopeofconsolidation
Advancestoshareholders1,169,988.7585,278.03---1,255,266.78
Guaranteesforfinanceleases1,453.2033.86-12.73--1,474.33
Landcompensationreceivable------
Others------
Total1,171,441.9585,311.89-12.73--1,256,741.11

(5)Therearenolong-termreceivableswrittenoffduringtheperiod.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

11.Long-termequityinvestments

(1)Classificationoflong-termequityinvestments

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025EffectofchangesinthescopeofconsolidationIncreaseininvestmentsDecreaseininvestmentsOtherincrease(decreaseexpressedwith"-")Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025
Investmentinjointventures9,315,986,527.94---119,473,373.7682,547,661.589,518,007,563.28
Investmentinassociates91,037,465,629.64-52,224,356.69-1,027,011.501,572,908,221.21-68,816,900.9392,592,754,295.11
Sub-total100,353,452,157.58-52,224,356.69-1,027,011.501,692,381,594.9713,730,760.65102,110,761,858.39
Less:provisionforimpairmentoflong-termequityinvestments335,422,262.62-----33,786.19335,388,476.43
Total100,018,029,894.96-52,224,356.69-1,027,011.501,692,381,594.9713,764,546.84101,775,373,381.96

(2)Detailsoflong-termequityinvestments

Investees01/01/2025Changesfortheperiod30/06/2025Provisionforimpairmentattheendoftheperiod
IncreaseininvestmentsDecreaseininvestmentsInvestmentincomeunderequitymethodShareofothercomprehensiveincomeShareofotherchangesinequityCashdividendsorprofitsdeclaredProvisionforimpairmentEffectoftranslationoffinancialstatementsdenominatedinforeigncurrenciesOthers
I.Jointventures
Euro-AsiaOceangateS.àr.l.2,275,132,823.96--70,196,770.59-----7,010,170.05-2,338,319,424.50-
PortofNewcastle1,939,252,174.56--17,546,382.691,925,795.27---65,231,465.91-2,023,955,818.43-
Others5,093,488,046.78--70,512,931.33-2,366,521.68-43,075,027.80-24,326,365.72-5,147,618,837.718,113,482.64
Sub-total9,307,873,045.30--158,256,084.611,925,795.272,366,521.68-43,075,027.80-82,547,661.58-9,509,894,080.648,113,482.64
II.Associates
ShanghaiPortGroup40,042,373,774.56--2,252,615,996.3020,081,602.53-401,614,813.34-947,040,362.54---40,966,416,197.51-
NingboZhoushanPortCompanyLimited(hereinafterreferredtoas"NingboZhoushan")19,421,486,011.70--599,442,861.88-10,157,802.9357,452,918.48-484,863,218.46---19,583,360,770.67-
ShenzhenChinaMerchantsQianhaiIndustrialDevelopmentCo.,Ltd.7,409,920,859.08--7,525,682.72------7,417,446,541.80-
TerminalLinkSAS6,168,712,893.68--282,658,056.13469,511,729.70--442,163,972.28--19,300,192.76-6,459,418,514.47-
NanshanGroup6,033,520,232.11--66,520,500.72102,203.13--37,014,000.00---6,063,128,935.96-
LiaoningPort4,250,226,314.79--108,535,869.92-1,966,554.513,449,621.95-64,882,190.15---4,295,363,062.00324,913,116.66
Others7,383,916,763.7452,224,356.69-1,027,011.50130,951,159.771,462.00-509,094.19-33,701,401.34--49,482,921.98-2,028,034.287,480,345,278.912,361,877.13
Sub-total90,710,156,849.6652,224,356.69-1,027,011.503,448,250,127.44477,572,639.92-341,221,367.10-2,009,665,144.77--68,783,114.74-2,028,034.2892,265,479,301.32327,274,993.79
Total100,018,029,894.9652,224,356.69-1,027,011.503,606,506,212.05479,498,435.19-338,854,845.42-2,052,740,172.57-13,764,546.84-2,028,034.28101,775,373,381.96335,388,476.43

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

11.Long-termequityinvestments-continued

(3)Changesinprovisionforimpairmentoflong-termequityinvestmentsareasfollows

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025EffectofchangesinthescopeofconsolidationIncreaseDecreaseEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025
DecreaseReasonsforreduction
LiaoningPort324,913,116.66-----324,913,116.66
SilkRoadYishangInformationTechnologyCo.,Ltd.8,113,482.64-----8,113,482.64
HOATHUONGCORPORATION2,395,663.32-----33,786.192,361,877.13
Total335,422,262.62-----33,786.19335,388,476.43

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

12.Investmentsinotherequityinstruments

(1)Detailsofinvestmentsinotherequityinstruments

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item30/06/202531/12/2024DividendincomerecognizedfortheperiodOthercomprehensiveincomeduringtheperiodOthercomprehensiveincomeattheendoftheperiodReasonsfordesignationatfairvaluethroughothercomprehensiveincomeAmounttransferredfromothercomprehensiveincometoretainedearningsReasonsfortransferringothercomprehensiveincometoretainedearnings
ChinaOceanShippingAgencyShenzhenCo.,Ltd.129,726,519.67129,726,519.67---Itisanon-tradingequityinstrumentinvestment-——
Others9,725,367.389,725,367.38120,000.00--Itisanon-tradingequityinstrumentinvestment-——
Total139,451,887.05139,451,887.05120,000.00---

(2)Therearenootherequityinstrumentsderecognizedfortheperiod.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

13.Othernon-currentfinancialassets

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
FinancialassetsatFVTPL28,524,600.3128,524,600.31
Including:Investmentsinequityinstruments28,524,600.3128,524,600.31
Total28,524,600.3128,524,600.31

14.Investmentproperties

(1)Investmentpropertiesmeasuredatcost

ItemLanduserightsBuildingsandstructuresTotal
I.Cost
1.Asat1January2025136,657,995.754,319,416,172.194,456,074,167.94
2.Effectofchangesinthescopeofconsolidation---
3.Increasefortheperiod---
(1)Otherincrease---
4.Decreasefortheperiod-552,235.00552,235.00
(1)Transferfrominvestmentpropertiestofixedassets---
(2)Otherdecreases-552,235.00552,235.00
5.Asat30June2025136,657,995.754,318,863,937.194,455,521,932.94
II.Accumulateddepreciationandamortization
1.Asat1January202550,135,665.571,117,248,431.771,167,384,097.34
2.Increasefortheperiod1,275,561.6561,769,732.0763,045,293.72
(1)Chargefortheperiod1,275,561.6561,769,732.0763,045,293.72
3.Decreasefortheperiod-161,287.68161,287.68
(1)Transferfrominvestmentpropertiestofixedassets---
(2)Otherdecreases-161,287.68161,287.68
4.Asat30June202551,411,227.221,178,856,876.161,230,268,103.38
III.Impairmentprovision
1.Asat1January2025---
2.Increasefortheperiod---
3.Decreasefortheperiod---
4.Asat30June2025---
IV.Carryingamount
1.Asat30June202585,246,768.533,140,007,061.033,225,253,829.56
2.Asat1January202586,522,330.183,202,167,740.423,288,690,070.60

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

14.Investmentproperties-continued

(2)Investmentpropertieswithoutownershipcertificates

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemBookvalueReasonsfornotobtainingcertificateoftitleExpectedtimeofcompletion
Buildings,structures,andlanduserights19,572,190.99SomebuildingsandstructureshavenotyetobtainedcertificatesoflanduserightsIntheprocessofnegotiatingandprocessingthepropertytitlecertificate

15.Fixedassets

15.1Summaryoffixedassets

Item30/06/202531/12/2024
Fixedassets30,161,556,835.5730,688,591,344.25
Disposaloffixedassets261,332.20626,447.20
Total30,161,818,167.7730,689,217,791.45

15.2Fixedassets

(1)Detailsoffixedassets

ItemPortandterminalfacilitiesBuildingsandstructuresMachineryandequipment,furniture,fixtureandotherequipmentMotorvehiclesandcargoshipsTotal
I.Cost
1.Asat1January202532,465,773,556.563,694,135,032.5217,385,378,609.692,287,212,824.8755,832,500,023.64
2.Effectofchangesinthescopeofconsolidation--215,249.81516,249.00731,498.81
3.Increasefortheperiod132,853,815.05-99,563,657.404,800,835.50237,218,307.95
(1)Purchase22,320,937.89-54,911,735.603,911,968.2681,144,641.75
(2)Transferfromdevelopmentcosts--1,014,917.78-1,014,917.78
(3)Transferfromconstructioninprogress110,532,877.16-43,637,004.02888,867.24155,058,748.42
(4)Transferfromright-of-useassets-----
(5)Transferfrominvestmentproperties-----
(6)Others-----
4.Decreasefortheperiod1,934,490.13-42,730,487.973,680.9144,668,659.01
(1)Disposalorretirement1,934,490.13-42,242,137.173,680.9144,180,308.21
(2)Others--488,350.80-488,350.80
5.Settlementvarianceadjustments-1,182,232.22--31,142.23--1,213,374.45
6.Reclassification-2,943,454.14-3,125,164.77-181,710.63-
7.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies212,978,526.71-1,184,424.87206,158,029.54-1,756,522.17416,195,609.21
8.Asat30June202532,805,545,721.833,692,950,607.6517,651,679,081.012,290,587,995.6656,440,763,406.15
II.Accumulateddepreciation
1.Asat1January202511,530,007,770.511,078,040,229.0811,097,200,518.481,225,369,778.2624,930,618,296.33
2.Effectofchangesinthescopeofconsolidation--215,249.81516,249.00731,498.81
3.Increasefortheperiod497,449,874.7264,748,343.36398,501,303.9954,325,396.891,015,024,918.96
(1)Chargefortheperiod497,449,874.7264,748,343.36398,501,303.9954,325,396.891,015,024,918.96
(2)Transferfromright-of-useassets-----
(3)Transferfrominvestmentproperties-----
(4)Others-----
4.Decreasefortheperiod1,463,529.95-37,445,858.152,143,805.3041,053,193.40
(1)Disposalorretirement1,463,529.95-37,024,089.03-38,487,618.98
(2)Others--421,769.122,143,805.302,565,574.42
5.Reclassification-997,007.60-2,225.26-6,218,170.777,217,403.63-
6.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies47,884,562.02-751,905.50113,586,951.61-201,901.06160,517,707.07
7.Asat30June202512,072,881,669.701,142,034,441.6811,565,839,994.971,285,083,121.4226,065,839,227.77
III.Impairmentprovision
1.Asat1January2025196,464,146.229,414,527.477,411,709.37-213,290,383.06
2.Increasefortheperiod-----
3.Decreasefortheperiod--42,717.28-42,717.28
4.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies--119,677.03-119,677.03
5.Asat3130June2025196,464,146.229,414,527.477,488,669.12-213,367,342.81
IV.Carryingamount
1.Asat30June202520,536,199,905.912,541,501,638.506,078,350,416.921,005,504,874.2430,161,556,835.57
2.Asat1January202520,739,301,639.832,606,680,275.976,280,766,381.841,061,843,046.6130,688,591,344.25
Including:Carryingamountoffixedassetspledgedattheendoftheperiod298,296,450.401,967,919.77326,328,155.81758,784.23627,351,310.21

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

15.Fixedassets-continued

15.2Fixedassets-continued

(2)TheGrouphasnofixedassetsthataretemporarilyidleasat30June2025.

(3)Fixedassetsleasedoutunderoperatingleases

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemCarryingamountasat30/06/2025Carryingamountasat31/12/2024
Buildingsandstructures172,948,620.54185,465,560.82
Portandterminalfacilities17,936,791.7341,979,439.95
Machineryandequipment,furniture,fixtureandotherequipment1,389,101.0710,203,232.09
Total192,274,513.34237,648,232.86

(4)Detailsoffixedassetsdepreciatedbutstillinuseandtemporarilyidleattheendofthe

period,andfixedassetsdisposedandretiredintheperiod:

ItemAmountRemark
I.Costoffixedassetsfullydepreciatedbutstillinuseattheendoftheperiod4,839,552,339.54
II.Costoffixedassetstemporarilyidleattheendoftheperiod-
III.Fixedassetsdisposedandretiredintheperiod:
Including:Costoffixedassetsdisposedandretiredintheperiod44,180,308.21
Netbookvalueoffixedassetsdisposedandretiredintheperiod5,692,689.23
Lossondisposalorretirementoffixedassetsintheperiod(“-”forloss)-1,226,124.74

(5)Fixedassetswithoutownershipcertificates

ItemCarryingamountasat30/06/2025Carryingamountasat31/12/2024Remark
Buildings,structures,portandterminalfacilities1,318,564,715.491,357,929,730.13Thisismainlyduetothefactthatcertainbuildingsandstructureshavenotyetobtainedthelanduserightsofthecorrespondinglandandtheapprovalprocedureshavenotyetbeencompleted.

(6)ThedetailsoftheGroup'sfixedassetswithrestrictedownershipasat30June2025areset

outinNoteVIII.63.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

15.Fixedassets-continued

15.3Disposaloffixedassets

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
Machineryandequipment,furniture,fixtureandotherequipment261,332.20626,447.20
Total261,332.20626,447.20

16.Constructioninprogress

(1)Presentationofconstructioninprogress

Item30/06/202531/12/2024
Constructioninprogress3,789,449,907.723,296,562,213.14
Materialsforconstructioninprogress3,198,804.0114,547,783.45
Total3,792,648,711.733,311,109,996.59

(2)Detailsofconstructioninprogress

Item30/06/202531/12/2024
BookvalueProvisionforimpairmentCarryingamountBookvalueProvisionforimpairmentCarryingamount
Portandterminalfacilities2,070,411,080.59-2,070,411,080.591,950,072,409.34-1,950,072,409.34
Infrastructure854,040,770.80-854,040,770.80608,560,125.43-608,560,125.43
Berthsandyards641,668,645.57-641,668,645.57475,884,349.47-475,884,349.47
Cargoshipsunderconstruction34,821,101.34-34,821,101.3421,073,474.73-21,073,474.73
Others189,275,809.02767,499.60188,508,309.42241,750,332.70778,478.53240,971,854.17
Total3,790,217,407.32767,499.603,789,449,907.723,297,340,691.67778,478.533,296,562,213.14

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

16.Constructioninprogress-continued

(3)Changesofsignificantconstructioninprogress

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemBudgetamount01/01/2025IncreasefortheperiodTransfertofixedassetsOtherdecreasesfortheperiodEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025Proportionofaccumulatedconstructioninvestmentinbudget(%)Constructionprogress(%)AmountofaccumulatedcapitalizedinterestIncluding:CapitalizedinterestfortheperiodInterestcapitalizationrateforthecurrentperiod(%)Capitalsource
ZhanjiangPortBaomanPortAreaContainerTerminalPhaseIExpansionProject2,342,775,800.00597,781,190.31245,245,026.69---843,026,217.0035.9835.987,986,884.103,833,013.502.65Ownfundsandloans
ReconstructionprojectofHIPGcontainer,oilterminalandtankarea2,899,284,007.32843,680,056.40----2,535,124.54841,144,931.8650.0350.03---Ownfunds
ZhanjiangPortDonghaiIslandPortAreaGroceryWharfProject905,348,400.00480,001,315.0433,994,899.72---513,996,214.7661.6761.6744,364,372.49--Ownfundsandloans
PhaseIofthesecondphaseofthewharfprojectinthelocaloperationareaofGoshanPortAreaiscontrolledinsequence746,878,600.00331,708,848.9947,906,302.42---379,615,151.4184.0184.0127,278,822.865,803,008.282.78Ownfundsandloans
SubsequentconstructioninprogressofHIPGwharf1,144,779,481.16347,651,856.2024,445,986.3529,799,127.47--1,031,442.96341,267,272.1232.4132.411,777,492.821,781,885.217.08Ownfundsandloans
PhaseIIofthesecondphaseprojectofthewharfinthelocaloperationareaoftheportareaofGoshanPortiscontrolledinsequence512,745,400.00136,728,384.61116,966,302.52---253,694,687.1349.4849.481,011,974.991,011,974.992.78Ownfundsandloans
DachanwanphaseIIproject6,201,904,300.0094,110,621.2315,795,438.98---109,906,060.211.771.77---Ownfunds
PhaseIIIExpansionProjectofBulkGrainWarehouseat2#and3#BerthsinXinshananOperationAreaofMachongPort1,070,060,466.8055,590,989.3149,112,189.71---104,703,179.0210.0010.001,138,413.55643,272.542.40Ownfundsandloans
BacklandreclamationprojectonHaidaganBulkYardandSupportingFacilitiesandLiquidBulkBerth82,400,000.0063,924,781.40418,555.20---64,343,336.6078.0078.00---Ownfunds
TheProjectofZhanjiangPort21#WarehouseandSubstationRenovationandExpansion117,110,000.0019,044,357.5720,196,457.04---39,240,814.6134.0034.00---Ownfunds
PhaseIIwarehouseofDjiboutiFreeTradeZoneBondedLogisticsPark88,388,418.3273,109,774.2315,536,625.5188,606,836.42--39,563.32-100.00100.00---Ownfunds
Total16,111,674,873.603,043,332,175.29569,617,784.14118,405,963.89--3,606,130.823,490,937,864.72————83,557,960.8113,073,154.52————

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

16.Constructioninprogress-continued

(4)Materialsforconstructioninprogress

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item30/06/202531/12/2024
BookvalueProvisionforimpairmentCarryingamountBookvalueProvisionforimpairmentCarryingamount
Materialsforconstructioninprogress3,198,804.01-3,198,804.0114,547,783.45-14,547,783.45

17.Right-of-useassets（

）Detailsofright-of-useassets

ItemPortandterminalfacilitiesBuildingsandstructuresMachineryandequipment,furniture,fixtureandotherequipmentLanduserightsMotorvehicles,cargoshipsandothersTotal
I.Cost
1.Asat1January20256,494,856,616.10154,067,861.905,409,429.143,718,797,951.136,177,384.7310,379,309,243.00
2.Increasefortheperiod296,669.10--115,058,088.683,115,026.16118,469,783.94
(1)Increase296,669.10--115,058,088.683,115,026.16118,469,783.94
3.Decreasefortheperiod629,562.498,873,024.95-2,408,655.71-11,911,243.15
(1)Changeorterminationoflease629,562.498,873,024.95-2,408,655.71-11,911,243.15
(2)Transfertofixedassets------
4.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies-20,452,001.31-419,619.69-2,643.37-18,088,963.04--38,963,227.41
5.Asat30June20256,474,071,721.40144,775,217.265,406,785.773,813,358,421.069,292,410.8910,446,904,556.38
II.Accumulateddepreciation
1.Asat1January2025928,160,476.7937,043,873.944,164,300.68448,828,617.903,759,910.151,421,957,179.46
2.Increasefortheperiod90,519,865.005,368,155.56839,531.4334,904,485.73868,801.50132,500,839.22
(1)Chargefortheperiod90,519,865.005,368,155.56839,531.4334,904,485.73868,801.50132,500,839.22
3.Decreasefortheperiod517,458.68883,087.55-2,306,514.00-3,707,060.23
(1)Changeorterminationoflease517,458.68883,087.55-2,306,514.00-3,707,060.23
(2)Transfertofixedassets------
4.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies-4,000,971.31-123,658.16-1,428.43-1,585,818.56--5,711,876.46
5.Asat30June20251,014,161,911.8041,405,283.795,002,403.68479,840,771.074,628,711.651,545,039,081.99
III.Impairmentprovision
1.Asat1January2025------
2.Increasefortheperiod------
3.Decreasefortheperiod------
4.Asat30June2025------
IV.Carryingamount
1.Asat30June20255,459,909,809.60103,369,933.47404,382.093,333,517,649.994,663,699.248,901,865,474.39
2.Asat1January20255,566,696,139.31117,023,987.961,245,128.463,269,969,333.232,417,474.588,957,352,063.54

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

18.Intangibleassets

(1)Detailsofintangibleassets

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemLanduserightsTerminalmanagementrightsDataresourcesOthersTotal
I.Cost
1.Asat1January202514,063,421,368.779,319,595,026.356,339,622.621,581,490,047.4024,970,846,065.14
2.Effectofchangesinthescopeofconsolidation---18,846.0218,846.02
3.Increasefortheperiod194,153,308.62282,605.85-62,668,982.70257,104,897.17
(1)Purchase194,153,308.62282,605.85-16,393,379.74210,829,294.21
(2)Transferfromdevelopmentcosts---45,378,503.6445,378,503.64
(3)Otherincrease---897,099.32897,099.32
4.Decreaseforperiod99,134,626.99--790,408.8699,925,035.85
(1)Disposal99,134,626.99--790,408.8699,925,035.85
5.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies-3,275,177.58848,584,242.51-68,039,570.38913,348,635.31
6.Asat30June202514,155,164,872.8210,168,461,874.716,339,622.621,711,427,037.6426,041,393,407.79
II.Accumulatedamortization
1.Asat1January20254,605,959,694.012,356,430,281.0688,502.35616,274,894.817,578,753,372.23
2.Effectofchangesinthescopeofconsolidation---10,051.2010,051.20
3.Increasefortheperiod164,366,555.57154,245,394.96316,981.0344,570,813.81363,499,745.37
(1)Chargefortheperiod164,366,555.57154,245,394.96316,981.0344,159,809.19363,088,740.75
(2)Otherincrease---411,004.62411,004.62
4.Decreasefortheperiod23,385,539.76--754,444.9824,139,984.74
(1)Disposal23,385,539.76--754,444.9824,139,984.74
5.Effectoftranslationoffinancialstatementsdenominatedinforeigncurrencies-1,620,785.91215,383,164.94-28,321,400.31242,083,779.34
6.Asat30June20254,745,319,923.912,726,058,840.96405,483.38688,422,715.158,160,206,963.40
III.Impairmentprovision
1.Asat1January202544,199,381.24--12,810,888.8357,010,270.07
2.Increasefortheperiod---42,717.2842,717.28
3.Decreasefortheperiod-----
4.Asat30June202544,199,381.24--12,853,606.1157,052,987.35
IV.Carryingamount
1.Asat30June20259,365,645,567.677,442,403,033.755,934,139.241,010,150,716.3817,824,133,457.04
2.Asat1January20259,413,262,293.526,963,164,745.296,251,120.27952,404,263.7617,335,082,422.84

(2)Landuserightswithoutownershipcertificatesasat30June2025:

ItemCarryingamountasat30/06/2025Carryingamountasat31/12/2024
Landuserights(Note)1,698,512,573.871,889,916,568.77

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

18.Intangibleassets-continued

(2)Landuserightswithoutownershipcertificatesasat30June2025:-continuedNote:Asat30June2025,thelanduserightswithoutownershipcertificatesmainlyrepresentthe

landuserightsforberthandstorageyardwithinChiwanPortareaobtainedbytheGroupfromNanshanGroup,withanareaof690,161.97m

,andDachanwanPortareaPhaseIIlanduserightsobtainedbyAnsujiePortWarehousingServices(Shenzhen)Co.,Ltd.(hereinafterreferredtoas"ASJ"),thecostsofwhichareRMB1,179,194,226.17andRMB918,521,317.23respectively.ThelanduserightsforberthandstorageyardwithinChiwanPortareaobtainedbytheGroupfromNanshanGrouprepresentthecapitalcontributionfromNanshanGrouptotheCompanyuponrestructuringoftheCompany,whiletheremaininglanduserightsareobtainedfromNanshanGroupbywayoflong-termlease.Uptodate,NanshanGrouphasnotyetobtainedthelanduserightsinrespectofthelandswithinChiwanwatershed,includingaforementionedcapitalcontributionandlandleasetotheGroup,therefore,theGroupcannotobtaintheownershipcertificateforrelevantlandandbuildingsonsuchland.TheCompany'smanagementunderstoodthatNanshanGroupisnegotiatingwithrelevantgovernmentdepartmentsregardingthehistoricalissues,andthedatewhentheGroupcanobtaintheownershipcertificateofrelevantlandandbuildingsonsuchlandcannotbeestimatedreliably.ThepropertyrightscertificateforthesecondphaselanduserightofDachanwanPortAreaobtainedbyASJwillbeprocessedafterthecompletionofseareclamation.

(3)ThedetailsoftheGroup'sintangibleassetswithrestrictedownershipasat30June2025

aresetoutinNoteVIII.63.

19.Goodwill

(1)Detailsofgoodwill

CHINAMERCHANTSPORTGROUPCO.,LTD.

Investee

InvesteeSources01/01/2025IncreasethisperiodDecreaseEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025
Businesscombination(Note)Otherincrease
TCPAcquisitionofequity2,369,714,257.24---293,283,800.982,662,998,058.22
MegaShekouContainerTerminalsLimited(hereinafterreferredtoas"MegaSCT")Acquisitionofequity1,815,509,322.42----1,815,509,322.42
CMPortAcquisitionofequity993,992,000.00----993,992,000.00
ShantouPortAcquisitionofequity552,317,736.65----552,317,736.65
ZhanjiangPortAcquisitionofequity418,345,307.68----418,345,307.68
ShenzhenMawanProjectAcquisitionofequity408,773,001.00----408,773,001.00
OthersAcquisitionofequity345,322,348.686,718,413.80--133,590.76351,907,171.72
Sub-total——6,903,973,973.676,718,413.80--293,150,210.227,203,842,597.69
Provisionforimpairmentofgoodwill——970,663,044.33----970,663,044.33
Total——5,933,310,929.346,718,413.80--293,150,210.226,233,179,553.36

Note:SeeNoteX.1fordetails.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

19.Goodwill-continued

(2)Provisionforimpairmentofgoodwill

CHINAMERCHANTSPORTGROUPCO.,LTD.Investee

Investee31/12/2024EffectofchangesinthescopeofconsolidationProvisionEffectoftranslationoffinancialstatementsdenominatedinforeigncurrenciesDecrease30/06/2025
ShantouPort552,317,736.65----552,317,736.65
ZhanjiangPort418,345,307.68----418,345,307.68
Total970,663,044.33----970,663,044.33

(3)Informationofassetgroupsorportfolioofassetgroupstowhichthegoodwillbelongs

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

(4)SpecificmethodfordeterminationofrecoverableamountWhenconductingimpairmenttestsongoodwill,theGroupcomparesthecarryingamountofrelatedassetgroupsandportfolioofassetgroups(includinggoodwill)withtherecoverableamount.Iftherecoverableamountislessthanthecarryingamount,thedifferenceisincludedinprofitorlossfortheperiod.TheGroupdeterminestherecoverableamountoftheassetgroupsandportfolioofassetgroupsthatgenerategoodwillatfairvaluelesscostofdisposaloratpresentvalueofexpectedfuturecashflows.Thefairvalueisdeterminedusingmarketapproach.Thepresentvalueofcashflowsisestimatedbasedontheforecastofcashflowsfortheprojectionperiodbetween5yearsto25yearsandsteadyperiod.Theestimatedfuturecashflowsfortheprojectionperiodarebasedonthebusinessplanestablishedbythemanagement;theexpectedfuturecashflowsforthesteadyperiodaredeterminedinconjunctionwiththelevelofthefinalyearoftheprojectionperiod,combinedwiththeGroup'sbusinessplans,industrytrendsandinflationrates.Thegrowthrateadoptedwillnotexceedthelong-termaveragegrowthrateofthecountrywheretheassetgroupsandportfolioofassetgroupsarelocated.ThekeyassumptionsusedbytheGroupinestimatingthepresentvalueoffuturecashflowsincludegrowthrateanddiscountrateetc.TheparametersofkeyassumptionsdeterminedbytheGroup'smanagementareinlinewiththeGroup'shistoricalexperienceorexternalsourceofinformation.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

20.Long-termdeferredexpensesPresentationoflong-termdeferredexpenses:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025EffectofchangesinthescopeofconsolidationIncreasefortheperiodAmortizationintheperiodOtherdecreases30/06/2025Reasonforotherdecreases
Tongguchannelwideningproject(Note1)426,358,457.19--7,310,063.39-419,048,393.80
WestpublicchannelwideningprojectatWestportarea(Note2)229,677,161.96--3,301,813.08-226,375,348.88
Dredgingproject65,783,053.94-8,015,464.2112,301,834.253,393.8161,493,290.09SettlementVariance
RelocationprojectofNanhaiRescueBureau35,339,374.70--553,684.20-34,785,690.50
Expendituresfortheimprovementofleasedfixedassets20,416,797.88-6,777,558.751,322,306.66623,271.5225,248,778.45SettlementVariance
Others162,829,634.27-20,142,105.8525,271,238.5653,922.99157,646,578.57SettlementVariance
Total940,404,479.94-34,935,128.8150,060,940.14680,588.32924,598,080.29

Note1:ThisrepresentstheGroup'sactualexpensesonShenzhenWesternPortAreaTonggu

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

WideningProject,ofwhichthewideningof240-270Minthefirstsectionwascompletedon1June2019andthewideningof240-270Minthesecondandthirdsectionswascompletedon5November2020.AccordingtorelevantresolutionsofShenzhenMunicipalGovernment,theenterpriseandgovernmentshallbear50%and50%oftheexpensesincurredfortheprojectrespectively.TheCompany'ssubsidiaryhasincludedtheexpensesondeepeningthechannelintheitemof“long-termdeferredexpenses”,andamortizedsuchexpensesovertheexpectedusefullifeof40yearsusingstraight-linemethodsincethecompletionofeachsectionofthechannelwideningproject.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

21.Deferredincometax

(1)Deferredtaxassetsbeforeoffsetting

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item30/06/202531/12/2024
DeductibletemporarydifferencesDeferredtaxassetsDeductibletemporarydifferencesDeferredtaxassets
Leaseliabilities627,617,310.30156,776,788.22666,428,741.59163,857,577.86
Unrealizedprofit739,765,524.18180,875,763.07742,725,529.54181,536,190.45
Terminaloperatingright723,032,577.53216,909,773.26725,211,723.54217,563,517.06
Depreciationoffixedassets179,598,025.2038,582,177.33180,532,470.2638,716,737.33
Provisionforbaddebts80,025,017.6117,393,010.9384,382,905.1018,830,890.39
Accruedandunpaidwages105,359,124.0822,406,171.63104,332,100.7721,864,895.76
Estimatedliabilities80,725,953.3127,103,084.9272,335,644.4124,250,379.90
Deductiblelosses64,026,865.929,637,384.9435,370,822.195,384,926.28
Deferredincome35,658,563.878,502,777.4036,119,190.538,571,871.40
Amortizationofcomputersoftware6,227,033.911,225,537.166,236,548.441,226,964.34
Provisionforimpairmentofassets3,578,012.68705,208.693,477,996.67690,206.29
Others102,451,566.1423,601,492.7098,150,808.9422,429,487.85
Total2,748,065,574.73703,719,170.252,755,304,481.98704,923,644.91

(2)Deferredtaxliabilitiesbeforeoffsetting

Item30/06/202531/12/2024
TaxabletemporarydifferencesDeferredtaxliabilitiesTaxabletemporarydifferencesDeferredtaxliabilities
Withholdingdividendincometax47,247,414,699.933,236,526,740.4245,628,599,622.343,127,746,150.78
Right-of-useassets935,153,783.61250,005,104.27972,527,705.73257,345,925.13
Terminaloperatingright272,832,750.1281,849,825.04273,655,040.0482,096,512.01
Fairvalueadjustmentofassetsacquiredfrombusinesscombination5,029,117,381.761,271,087,866.824,861,662,497.661,254,384,068.52
Depreciationoffixedassets989,000,597.42272,332,032.13934,419,445.82257,210,035.67
Changesinfairvalueofinvestmentsinotherequityinstruments116,216,519.6429,054,129.91116,216,519.6429,054,129.91
Valuationoffinancialassetsheldfortrading1,018,630.12254,657.533,019,863.08754,965.77
Others1,085,407,084.74123,333,617.131,026,333,384.24126,835,982.94
Total55,676,161,447.345,264,443,973.2553,816,434,078.555,135,427,770.73

(3)Deferredtaxassetsorliabilitiesthatarepresentedatthenetamountafteroffsetting

ItemOffsetamountofdeferredtaxassetsandliabilitiesattheendofthecurrentperiodBalanceofdeferredtaxassetsorliabilitiesafteroffsettingattheendofthecurrentperiodOffsetamountofdeferredtaxassetsandliabilitiesattheendoftheprioryearBalanceofdeferredtaxassetsorliabilitiesafteroffsettingattheendoftheprioryear
Deferredtaxassets-331,827,381.96371,891,788.29-339,442,437.14365,481,207.77
Deferredtaxliabilities-331,827,381.964,932,616,591.29-339,442,437.144,795,985,333.59

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

21.Deferredincometax-continued

(4)Deductibletemporarydifferencesanddeductiblelossesforwhichdeferredtaxassetsare

notrecognized

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
Deductibletemporarydifferences1,104,362,401.321,126,951,677.30
Deductiblelosses1,935,788,353.261,637,807,708.04
Total3,040,150,754.582,764,759,385.34

TheGrouprecognizesdeferredincometaxassetstotheextentoffuturetaxableincomethatislikelytobeobtainedtooffsetthedeductibletemporarydifferencesanddeductiblelosses.Fortheexcessofdeductibletemporarydifferencesanddeductiblelossesoverfuturetaxableincome,nodeferredtaxassetsarerecognized.

(5)Deductiblelossesforwhichdeferredtaxassetsarenotrecognizedwillbeexpiredinthe

followingyears:

Year30/06/202531/12/2024
2025375,181,018.80375,181,018.80
2026105,089,811.43105,089,811.43
2027309,663,870.29332,432,966.78
2028738,506,040.01753,239,633.32
202965,740,049.2071,864,277.71
2030341,607,563.53-
Total1,935,788,353.261,637,807,708.04

22.Othernon-currentassets

Item30/06/202531/12/2024
Advancesforthechannelproject(Note1)1,045,135,133.811,037,329,218.89
Prepaymentsforlong-termassets87,316,496.13117,351,349.97
Prepaymentsforterminaloperatingright31,564,524.6128,542,865.38
Others14,737,557.1414,325,919.01
Sub-total1,178,753,711.691,197,549,353.25
Less:provisionforimpairment(Note2)88,524,171.4488,524,171.44
Total1,090,229,540.251,109,025,181.81

Note1:ThisrepresentsthattheCompany'ssubsidiaryZhanjiangPort,uponitsreorganizationinto

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

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

22.Othernon-currentassets-continuedNote2:Asat30June2025,basedonthecreditriskratingresults,theGroupaccruedthe

correspondingcreditimpairmentofRMB88,524,171.44fortheadvancesforthechannelproject.

23.Short-termborrowings

(1)Classificationofshort-termborrowings

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
Creditborrowings12,262,578,509.3712,771,225,106.96
Mortgageborrowings(Note1)42,027,223.3320,017,034.73
Total12,304,605,732.7012,791,242,141.69

Note1:Itrepresentstheshort-termborrowingsobtainedbyGuangdongYidePortCo.,Ltd.

(hereinafterreferredtoas"YidePort"),asubsidiaryoftheCompany,withthelanduserightsandbuildingsonthelandheldbyitasthecollateral.

(2)Asat30June2025,theGrouphasnoshort-termborrowingsthatareoverdue.

24.Billspayable

Category30/06/202531/12/2024
Bankacceptance-1,536,194.00
Total-1,536,194.00

Note:Asat30June2025,theGrouphasnobillspayabledueandunpaid.

25.Accountspayable

Item30/06/202531/12/2024
Servicefee216,705,683.30177,881,786.24
Materialpurchasefee139,056,545.71147,233,743.30
Constructionfee76,683,576.3297,723,911.20
Equipmentpayments39,496,833.8979,246,916.34
Rentalfee21,513,841.8819,621,514.17
Others182,228,231.25264,122,661.08
Total675,684,712.35785,830,532.33

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

25.Accountspayable-continued

(1)Agingofaccountspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.

Aging

Aging30/06/202531/12/2024
AmountProportion(%)AmountProportion(%)
Within1year(Including1year)604,467,055.5889.46694,992,359.2788.44
1-2years(Including2years)31,481,230.384.6646,762,212.215.95
2-3years(Including3years)9,034,930.031.3411,450,482.241.46
Morethan3years30,701,496.364.5432,625,478.614.15
Total675,684,712.35100.00785,830,532.33100.00

(2)Significantaccountspayableagedmorethan1year

Nameofentity30/06/2025AgingReasonforoutstanding
QuanzhouAntongLogisticsCo.,Ltd.17,869,057.611-2yearsandmorethan3yearsTobepaiduponconfirmationbybothparties
SinopecGroupAssetsOperationManagementCo.,Ltd.GuangdongPetroleumBranch11,143,700.001-2years,2-3yearsandmorethan3yearsTobepaiduponconfirmationbybothparties

26.Advancepaymentsreceived

Item30/06/202531/12/2024
Rentalfeereceivedinadvance16,007,441.9814,371,546.45
Others203,368.23204,691.39
Total16,210,810.2114,576,237.84

(1)Agingofadvancepaymentsreceived

Aging30/06/202531/12/2024
AmountProportion(%)AmountProportion(%)
Within1year(Including1year)15,973,953.1198.5313,621,118.4893.45
1-2years(Including2years)99,801.050.62955,119.366.55
2-3years(Including3years)137,056.050.85--
Morethan3years----
Total16,210,810.21100.0014,576,237.84100.00

(2)Asat30June2025,theGrouphasnosignificantadvancepaymentsreceivedagedmore

thanoneyear.

(3)Fortheperiodended30June2025,theGrouphasnoadvancepaymentsreceivedwith

significantchangesincarryingamount.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

27Contractliabilities

(1)Detailsofcontractliabilities

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
Portandservicefeescollectedinadvance199,678,001.02123,282,437.42
Unusedsalesdiscounts129,583,924.79123,329,461.62
Storagefeescollectedinadvance2,792,782.495,407,746.76
Others17,002,507.6115,868,626.82
Total349,057,215.91267,888,272.62

(2)Revenuerecognizedinthecurrentperiodthatwasincludedinthebookvalueofcontract

liabilitiesatthebeginningofthecurrentperiod.AnamountofRMB148,550,363.21withinthebookvalueofcontractliabilitiesatthebeginningofthecurrentperiodhasbeenrecognizedasrevenueduringthecurrentperiod,includingcontractliabilitiesarisingfromsettledanduncompletedaccountsformedbycontractsforunusedsalesdiscountsandadvancecollectionofportandservicefees,advancecollectionofstoragefeesandothercontracts.

(3)Asat30June2025,theGrouphasnosignificantcontractliabilitiesagedmorethanone

year.

(4)QualitativeanalysisofcontractliabilitiesContractliabilitiesmainlyrefertounusedsalesdiscountsandfeescollectedbytheGroupforprovidingportservicestocustomers.UnusedsalesdiscountreferstothesalesdiscountwithdrawnbytheGrouponthedateoffinancialstatementsforthesalescontractthathasfulfilledtheperformanceobligationandisusedtodeductfutureservicefees.Advanceportandservicefeesshallbecollectedaccordingtothepaymenttimeagreedinthecontract.TheGrouprecognizescontractrevenueaccordingtotheperformanceschedule,andcontractliabilitieswillberecognizedasrevenueaftertheGroupperformsitsperformanceobligations.

(5)Fortheperiodfrom1Januaryto30June2025,theGrouphasnocontractliabilitieswith

significantchangesinbookvalue.

28.Employeebenefitspayable

(1)Presentationofemployeebenefitspayable

Item01/01/2025EffectofchangesinthescopeofconsolidationIncreasefortheperiodDecreasefortheperiod30/06/2025
1.Short-termbenefits1,159,571,782.03888,451.871,661,401,315.501,758,891,848.851,062,969,700.55
2.Post-employmentbenefits-definedcontributionplan8,520,567.12-197,611,565.70191,671,648.4414,460,484.38
3.Terminationbenefits500,000.00-2,048,935.422,548,935.42-
4.Otherbenefitsduewithin1year--55,312.9155,312.91-
5.Others--2,564,051.052,539,549.0524,502.00
Total1,168,592,349.15888,451.871,863,681,180.581,955,707,294.671,077,454,686.93

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

28.Employeebenefitspayable-continued

(2)Presentationofshort-termbenefits

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025EffectofchangesinthescopeofconsolidationIncreasefortheperiodDecreasefortheperiod30/06/2025
1.Wagesandsalaries,bonuses,allowancesandsubsidies1,126,682,376.2093,380.001,354,094,900.731,455,253,402.661,025,617,254.27
2.Staffwelfare--73,249,736.2868,027,632.975,222,103.31
3.Socialinsurancecontributions21,283,662.81-102,882,867.51106,555,686.9317,610,843.39
Including:Medicalinsurance17,671,866.66-81,443,790.7685,191,603.6113,924,053.81
Workinjuryinsurance--12,636,449.5312,636,449.53-
Others3,611,796.15-8,802,627.228,727,633.793,686,789.58
4.Housingfunds0.01-98,474,290.5898,365,157.84109,132.75
5.Labourunionandemployeeeducationfunds11,605,743.01795,071.8724,409,627.0124,787,172.0712,023,269.82
6.Othershort-termbenefits--8,289,893.395,902,796.382,387,097.01
Total1,159,571,782.03888,451.871,661,401,315.501,758,891,848.851,062,969,700.55

(3)Presentationofdefinedbenefitplans

Item01/01/2025EffectofchangesinthescopeofconsolidationIncreasefortheperiodDecreasefortheperiod30/06/2025
1.Basicpension7,459,654.22-147,665,865.44145,031,381.8410,094,137.82
2.Unemploymentinsurance--6,040,104.216,040,104.21-
3.Enterpriseannuity1,060,912.90-43,905,596.0540,600,162.394,366,346.56
Total8,520,567.12-197,611,565.70191,671,648.4414,460,484.38

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

29.Taxespayable

Item30/06/202531/12/2024
Enterpriseincometax669,737,068.29576,840,455.26
VAT25,771,043.9733,120,467.83
Othertaxes144,888,094.94115,204,803.23
Total840,396,207.20725,165,726.32

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

30.Otherpayables

(1)Presentationofotherpayables

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
Dividendspayable1,451,609,827.45132,334,744.28
Otherpayables1,650,156,197.221,791,645,568.70
Total3,101,766,024.671,923,980,312.98

(2)Dividendspayable

Item30/06/202531/12/2024
Ordinarysharedividends1,451,609,827.45132,334,744.28
Including:CHINAMERCHANTSUNION(BVI)LIMITED532,521,852.44-
ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.105,526,928.2379,792,513.04
SINOMARTKTSDEVELOPMENTLIMITED64,125,000.00-
ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd.37,094,597.3552,542,231.24
ChinaMerchantsInnovationandTechnology(HongKong)Co.,Ltd.13,705,787.23-
YiuLianDockyardsLimited10,389,914.81-
QingdaoPort(Group)Co.,Ltd.3,204,909.14-
ShantouInvestmentHoldingsGroupCo.,Ltd.2,483,123.14-
QingdaoQingbaoInvestmentHoldingCo.,Ltd.2,029,695.52-
ORIENTUREHOLDINGSCOMPANYLIMITED1,741,965.84-
Others678,786,053.75-

Note:Asat30June2025,TheGrouphasatotalofRMB57,734,806.46ofimportantdividends

payablewithanagingofmorethanoneyear,allofwhicharedividendspayabletoChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.Thereasonforthenon-disbursementisthatthepaymentmethodhasnotyetbeenarranged.

(3)Otherpayables(a)Disclosureofotherpayablesbynature

Item30/06/202531/12/2024
Amountpayableforconstructionandqualitywarranty780,469,716.20769,762,433.76
Guaranteesanddeposits202,142,551.69271,312,443.95
Customerdiscount70,557,691.15125,850,513.80
Portconstructionandsecurityfee22,570,668.9226,454,133.47
Accruedexpenses-164,709,813.36
Others574,415,569.26433,556,230.36
Total1,650,156,197.221,791,645,568.70

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

30.Otherpayables-continued

(3)Otherpayables-continued(b)Aginganalysisofotherpayables

CHINAMERCHANTSPORTGROUPCO.,LTD.

Aging

Aging30/06/202531/12/2024
AmountProportion（%）AmountProportion（%）
Within1year(including1year)1,012,416,655.5761.351,181,359,579.9665.94
1-2years(including2years)186,757,369.3911.32100,163,555.985.59
2-3years(including3years)125,218,616.837.59144,116,749.008.04
Morethan3years325,763,555.4319.74366,005,683.7620.43
Total1,650,156,197.22100.001,791,645,568.70100.00

(c)Significantotherpayablesagedmorethanoneyear

CompanynameAmountpayableAgingReasonforbeingoutstanding
TransportBureauofShenzhenMunicipality(PortsAdministrationofShenzhenMunicipality)79,679,948.791-2years,2-3yearsandmorethan3yearsTobepaiduponconfirmationbybothparties
LacAssalInvestmentHoldingCompanyLimited65,074,559.452-3yearsTobepaiduponconfirmationbybothparties
NingboDaxieContainerTerminalCo.,Ltd.36,010,817.141-2yearsTobepaiduponconfirmationbybothparties
SriLankaPortsAuthority35,551,347.861-2years,2-3yearsandmorethan3yearsTobepaiduponconfirmationbybothparties
ShantouTransportationBureau31,358,355.47morethan3yearsTobepaiduponconfirmationbybothparties
Total247,675,028.71

31.Non-currentliabilitiesduewithinoneyear

Item30/06/202531/12/2024
Long-termborrowingsduewithinoneyear(NoteVIII.33)3,798,735,502.793,271,899,155.70
Including:Creditborrowings3,615,773,655.923,083,776,769.64
Mortgageborrowings105,900,871.93110,904,933.53
Guaranteedandmortgageborrowings77,060,974.9477,217,452.53
Bondspayableduewithinoneyear(NoteVIII.34)6,922,216,731.996,866,623,467.03
Leaseliabilitiesduewithinoneyear(NoteVIII.35)91,582,039.86101,402,045.53
Long-termpayablesduewithinoneyear(NoteVIII.36)253,075,146.09206,012,716.21
Long-termemployeebenefitspayableduewithinoneyear(NoteVIII.37)44,308,564.2844,885,411.13
Othernon-currentliabilitiesduewithinoneyear(NoteVIII.40)15,860,000.0015,860,000.00
Total11,125,777,985.0110,506,682,795.60

32.Othercurrentliabilities

(1)Detailsofothercurrentliabilities

Item30/06/202531/12/2024
Short-termbondspayable2,003,475,068.494,020,214,246.58
Accruedexpenses182,106,665.5312,367,064.92
Others16,474,856.4728,620,449.22
Total2,202,056,590.494,061,201,760.72

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

32.Othercurrentliabilities-continued

(2)Changesinshort-termbondspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofbond

NameofbondFacevalueCouponrateDateofissueTermofthebondAmountofissue01/01/2025AmountissuedinthecurrentperiodInterestaccruedbasedonparvalueAmortizationofpremiumsordiscountsRepaymentinthecurrentperiod30/06/2025Isitinbreachofcontract?
1.51%RMB2billionSupershort-termCommercialPaper2,000,000,000.001.51%2025-05-19180days2,000,000,000.00-2,000,000,000.003,475,068.49--2,003,475,068.49No
1.95%RMB2billionSupershort-termCommercialPaper2,000,000,000.001.95%2024-07-31270days2,000,000,000.002,016,347,945.21-12,501,369.86-2,028,849,315.07-No
1.96%RMB2billionSupershort-termCommercialPaper2,000,000,000.001.96%2024-11-25180days2,000,000,000.002,003,866,301.37-15,465,205.48-2,019,331,506.85-No
Total6,000,000,000.006,000,000,000.004,020,214,246.582,000,000,000.0031,441,643.83-4,048,180,821.922,003,475,068.49

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

33.Long-termborrowings

CHINAMERCHANTSPORTGROUPCO.,LTD.

Category

Category30/06/202531/12/2024Rangeofperiod-endinterestrate
Creditborrowings14,613,351,496.4216,987,277,281.491.20%-3.00%
Mortgageborrowings(Note1)809,335,418.34683,224,190.762.66%-8.25%
Guaranteedandmortgageborrowings(Note2)1,145,669,858.541,183,990,939.102.25%
Total16,568,356,773.3018,854,492,411.35
Less:Long-termborrowingsduewithinoneyear3,798,735,502.793,271,899,155.70——
Including:Creditborrowings3,615,773,655.923,083,776,769.64——
Mortgageborrowings105,900,871.93110,904,933.53——
Guaranteedandmortgageborrowings77,060,974.9477,217,452.53——
Long-termborrowingsdueafteroneyear12,769,621,270.5115,582,593,255.65——

Note1:On30June2025,theGroupobtainedlong-termloansofRMB644,572,019.75(31

December2024:RMB499,583,188.96)withthelandandfixedassetsheldbyGuangdongYidePortCo.,Ltd.(hereinafterreferredtoas"YidePort")andthelandheldbyGuangdongShunkongLingangDevelopmentandConstructionCo.,Ltd.(hereinafterreferredtoas"ShunkongPort")ascollateral;ZhoushanRoRo,asubsidiaryoftheCompany,obtainedalong-termloanofRMB120,529,402.35(31December2024:

RMB124,053,435.96)bymortgagingitslanduserightandbuildingsonground;PTNusantaraPelabuhanHandalTbk(hereinafterreferredtoas"NPH")obtainedalong-termloanofRMB44,233,996.24(31December2024:RMB59,587,565.84)withfixedassetsascollateral.Note2:On30June2025,ShenzhenHaixingPortDevelopmentCo.,Ltd.(hereinafterreferredto

as"ShenzhenHaixing")obtainedalong-termloanofRMB1,145,669,858.54(31December2024:RMB1,183,990,939.10)withthelandholdingpropertyrightsascollateralandguaranteedbyChinaMerchantsPortHoldingsandSinotransSouthChinaCo.,Ltd.Detailsofmortgageandpledgedborrowingsareasfollows:

Companyname30/06/202531/12/2024Collateralandpledge
BankofChinaQianhaiShekouBranch1,145,669,858.541,183,990,939.10LanduserightsofShenzhenHaixing
BankofCommunicationsCo.,Ltd.GuangdongBranch、ShenzhenBranchofChinaMerchantsGroupFinanceCo.,Ltd.484,445,353.10323,411,100.05LanduserightsofShunkongPort
ChinaConstructionBankShundeBranch160,126,666.65176,172,088.91LanduserightsandfixedassetsofYidePort
ChinaMerchantsGroupFinanceCompanyLimited.120,529,402.35124,053,435.96LanduserightandbuildingsongroundofZhoushanRoRo
PTBankMandiri(Persero)Tbk44,233,996.2459,587,565.84FixedassetsofNPH
Total1,955,005,276.881,867,215,129.86

Note:SeeNoteVIII.63fortheabovemortgagesandpledges.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

34.Bondspayable

(1)Bondspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
5.000%USD600millioncorporatebond4,364,608,546.854,374,939,570.06
4.750%USD500millioncorporatebond3,652,409,254.323,661,941,770.15
4.000%USD500millioncorporatebond3,589,768,023.183,599,756,588.81
2.690%RMB3billioncorporatebond3,067,434,246.553,027,415,890.40
2.180%RMB2billioncorporatebond2,037,269,041.082,015,648,219.17
1.980%RMB2billionmediumtermnotes2,010,632,328.77-
2.800%RMB1500millionmediumtermnotes1,510,241,095.891,531,413,698.63
2.300%RMB1200millionmediumtermnotes1,226,768,219.181,213,081,643.84
2.100%RMB800millionmediumtermnotes816,293,698.67807,962,739.75
2.680%RMB500millionmediumtermnotes503,267,397.25510,022,465.74
Total22,778,691,851.7420,742,182,586.55
Less:Bondspayableduewithinoneyear6,922,216,731.996,866,623,467.03
Bondspayabledueafteroneyear15,856,475,119.7513,875,559,119.52

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

34.Bondspayable-continued

(2)Detailsofbondspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofbonds

NameofbondsFacevalueCouponrateDateofissueTermofthebondAmountofissue01/01/2025AmountissuedinthecurrentperiodInterestaccruedbasedonparvalueAmortizationofpremiumsordiscountsRepaymentincurrentperiodEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025Isitinbreachofcontract?
5.000%USD600millioncorporatebondUSD600,000,000.005.0000%2018-08-0610yearsUSD600,000,000.004,374,939,570.06-107,234,302.883,167,404.00107,760,882.81-12,971,847.284,364,608,546.85No
4.750%USD500millioncorporatebondUSD500,000,000.004.7500%2015-08-0310yearsUSD500,000,000.003,661,941,770.15-85,316,064.831,473,350.5885,316,064.83-11,005,866.413,652,409,254.32No
4.000%USD500millioncorporatebondUSD500,000,000.004.0000%2022-06-015yearsUSD500,000,000.003,599,756,588.81-71,132,294.321,419,395.2571,691,564.25-10,848,690.953,589,768,023.18No
2.690%RMB3billioncorporatebond3,000,000,000.002.6900%2022-08-293years3,000,000,000.003,027,415,890.40-40,018,356.15---3,067,434,246.55No
2.180%RMB2billioncorporatebond2,000,000,000.002.1800%2024-08-225years2,000,000,000.002,015,648,219.17-21,620,821.91---2,037,269,041.08No
1.980%RMB2billionmediumtermnotes2,000,000,000.001.9800%2025-03-243years2,000,000,000.00-2,000,000,000.0010,632,328.77---2,010,632,328.77No
2.800%RMB1500millionmediumtermnotes1,500,000,000.002.8000%2024-04-0110years1,500,000,000.001,531,413,698.63-20,827,397.26-42,000,000.00-1,510,241,095.89No
2.300%RMB1200millionmediumtermnotes1,200,000,000.002.3000%2024-07-105years1,200,000,000.001,213,081,643.84-13,686,575.34---1,226,768,219.18No
2.100%RMB800millionmediumtermnotes800,000,000.002.1000%2024-07-103years800,000,000.00807,962,739.75-8,330,958.92---816,293,698.67No
2.680%RMB500millionmediumtermnotes500,000,000.002.6800%2024-04-015years500,000,000.00510,022,465.74-6,644,931.51-13,400,000.00-503,267,397.25No
Total——————————20,742,182,586.552,000,000,000.00385,444,031.896,060,149.83320,168,511.89-34,826,404.6422,778,691,851.74
Less:Bondspayableduewithinoneyear——————————6,866,623,467.03——————————6,922,216,731.99
Bondspayabledueafteroneyear——————————13,875,559,119.52——————————15,856,475,119.75

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

35.Leaseliabilities

(1)Leaseliabilities

CHINAMERCHANTSPORTGROUPCO.,LTD.Category

Category30/06/202531/12/2024
Leasepayment3,446,779,494.453,388,957,333.56
Less:Unrecognizedfinancingcost1,873,423,424.621,900,348,297.52
Total1,573,356,069.831,488,609,036.04
Less:Leaseliabilitiesduewithinoneyear91,582,039.86101,402,045.53
Netleasesliabilities1,481,774,029.971,387,206,990.51

(2)Maturityofleaseliabilities

Item30/06/2025
Minimumleasepaymentsundernon-cancellableleases:
1styearsubsequenttothebalancesheetdate169,000,424.64
2ndyearsubsequenttothebalancesheetdate141,402,853.90
3rdyearsubsequenttothebalancesheetdate124,010,608.19
Subsequentyears3,012,365,607.72
Total3,446,779,494.45

TheGroupisnotexposedtoanysignificantliquidityriskassociatedwithleaseliabilities.

36.Long-termpayables

(1)Presentationoflong-termpayables

Item30/06/202531/12/2024
Long-termpayables3,913,043,091.173,404,462,444.72
Specialpayables6,280,816.296,132,944.24
Total3,919,323,907.463,410,595,388.96
Less:Long-termpayablesduewithinoneyear253,075,146.09206,012,716.21
Long-termpayablesdueafteroneyear3,666,248,761.373,204,582,672.75

(2)Long-termpayables

Item30/06/202531/12/2024
Terminalmanagementrights(Note)3,651,773,112.663,330,284,743.90
Sale-leasebackpayment145,113,492.82-
Others116,156,485.6974,177,700.82
Total3,913,043,091.173,404,462,444.72
Less:Long-termpayablesduewithinoneyear253,075,146.09206,012,716.21
Long-termpayablesdueafteroneyear3,659,967,945.083,198,449,728.51

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

36.Long-termpayables-continued

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

theGroupreacheda35-yearbuilding,operationandtransferagreementthroughthesubsidiaryCICTandSriLankaPortAuthorityonthebuilding,operation,managementanddevelopmentofColomboPortSouthContainerTerminal(hereinafterreferredtoas"BOT").Theabove-mentionedamountpayablefortheacquisitionofterminalmanagementrightsisdeterminedbydiscountingtheamounttobepaidinthefutureusingtheprevailingmarketinterestrateaccordingtotheBOTagreement.Asat30June2025,theamountpayablefortheacquisitionofterminalmanagementrightsisRMB878,846,345.38.TCP,asubsidiaryoftheCompany,enteredintoafranchiseagreementonthePortofParanaguáwiththeAdministrationofthePortsofParanaguáandAntonina-APPA(hereinafterreferredtoas"APPA").Theagreementprovidesforaninitialtermof25yearsforthefranchisingrights.InApril2016,TCPandAPPAenteredintotheSupplementalAgreement,whichextendsthetermto50yearsandwillbeexpiredinOctober2048.Asat30June2025,theamountoffranchisingrightspayablewasRMB2,772,926,767.28.

(3)Specialpayables

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025EffectofchangesinthescopeofconsolidationIncreasefortheperiodDecreasefortheperiod30/06/2025Reason
Employeehousingfund6,132,944.24-147,872.05-6,280,816.29Note
Total6,132,944.24-147,872.05-6,280,816.29

Note:Thisrepresentstherepairingfundforpublicareasandpublicfacilitiesandequipment

establishedaftertheGroupsellsthepublic-ownedhouseonthecollectivelyallocatedlandtoemployees.Thefundiscontributedbyalltheemployeeshavingownershipofthehouseaccordingtotherulesandisspeciallymanagedandusedforspecificpurpose.

(4)Topfivelong-termpayablesattheendoftheperiod

Item30/06/202531/12/2024
APPAPortAuthority2,772,926,767.282,448,789,645.79
SriLankaPortsAuthority886,146,533.07883,466,471.81
OceanOffshore2403Limited145,113,492.82-
ChinaMerchantsFinanceLeasing(Tianjin)Co.,Ltd.72,172,850.4472,206,327.12
YihaiKerryArawanaHoldingsCo.,Ltd.36,683,447.56-
Total3,913,043,091.173,404,462,444.72

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

37.Long-termemployeebenefitspayable

(1)Long-termemployeebenefitspayable

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025EffectofchangesinthescopeofconsolidationIncreasefortheperiodPaymentincurrentperiodActuarialadjustmentInterestadjustmentEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025
Post-employmentbenefits-netliabilitiesofdefinedbenefitplans593,762,038.304,149,405.807,218,603.8312,206,350.55-6,834,800.021,548,050.47601,306,547.87
Terminationbenefits49,564,258.85-239,999.965,111,426.47-199,200.00-44,892,032.34
Otherlong-termbenefit(note)57,217,158.96-2,758,395.199,851,219.62---50,124,334.53
Total700,543,456.114,149,405.8010,216,998.9827,168,996.64-7,034,000.021,548,050.47696,322,914.74
Less:Long-termemployeebenefitspayableduewithinoneyear44,885,411.13————————————44,308,564.28
Long-termemployeebenefitspayabledueafteroneyear655,658,044.98————————————652,014,350.46

Note:ThisrepresentstheemployeerelocationcostsoftheCompany'ssubsidiaryShantouPortinconnectionwithlandacquisitionandreservation.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

37.Long-termemployeebenefitspayable-continued

(2)ChangesindefinedbenefitplansPresentvalueofdefinedbenefitplanobligations:

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
I.Openingbalance593,762,038.30509,605,071.25
II.Definedbenefitcostincludedinprofitorlossfortheperiod14,053,403.856,202,972.98
1.Currentservicecost7,218,603.83132,972.96
2.Pastservicecost--
3.Interestadjustment6,834,800.026,070,000.02
III.Definedbenefitcostincludedinothercomprehensiveincome1,548,050.47-295,564.04
1.Actuarialgains--
2.Effectofexchangeratechanges1,548,050.47-295,564.04
IV.Otherchanges-8,056,944.754,877,999.72
1.Benefitspaid-12,206,350.55-12,308,871.63
2.Changesinthescopeofconsolidation4,149,405.8017,186,871.35
V.Attheendoftheperiod601,306,547.87520,390,479.91

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

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38.Provisions

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025IncreasefortheperiodDecreasefortheperiodEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025Reason
Pendinglitigation159,435,795.502,663,832.8891,896,139.878,713,311.0878,916,799.59Note
Total159,435,795.502,663,832.8891,896,139.878,713,311.0878,916,799.59

Note:ThisrepresentstheestimatedcompensationamountRMB78,916,799.59thatthe

Company'ssubsidiaryTCPmayneedtopayduetothependinglitigation.

39.Deferredincome

Item01/01/2025EffectofchangesinthescopeofconsolidationIncreasefortheperiodDecreasefortheperiod30/06/2025
Governmentgrants1,268,975,316.61-4,587,059.6025,333,879.711,248,228,496.50
Total1,268,975,316.61-4,587,059.6025,333,879.711,248,228,496.50

(1)Governmentgrantsincludedindeferredincome

Categoryofgovernmentgrants30/06/2025AmountincludedincurrentprofitandlossAmountrefundedthisperiodReasonforreturn
Governmentgrants1,248,228,496.5025,333,879.71-Notapplicable
Total1,248,228,496.5025,333,879.71-Notapplicable

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

40.Othernon-currentliabilities

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025IncreaseduetochangeofconsolidationscopeIncreasefortheperiodDecreasefortheperiodEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025
Actuarialcostforthecalculationofpensionbenefitdifferenceforthepublicsecuritybureaustaff(Note1)194,879,858.67--5,819,141.01-189,060,717.66
Others3,700,396.17-574,148.18--4,274,544.35
Total198,580,254.84-574,148.185,819,141.01-193,335,262.01
Less:Othernon-currentliabilitiesduewithinoneyear15,860,000.00-————-15,860,000.00
Including:Actuarialcostforthecalculationofpensionbenefitsdifferenceforthepublicsecuritybureaustaff15,860,000.00-————-15,860,000.00
Relatedpartyborrowings--————--
Othernon-currentliabilitiesdueafteroneyear182,720,254.84-————-177,475,262.01

Note1:ItrepresentsthetransferofZhanjiangPortPublicSecurityBureautothePeople'sGovernmentofZhanjiangMunicipalitybyZhanjiangPort,asubsidiaryofthe

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

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

41.Sharecapital

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofinvestor

Nameofinvestor01/01/2025IncreasefortheperiodDecreasefortheperiod30/06/2025
InvestmentamountProportion（%）InvestmentamountProportion（%）
ChinaMerchantsPortInvestmentDevelopmentCompanyLimited1,148,648,648.0045.92--1,148,648,648.0045.92
ZhejiangSeaportInvestmentandOperationGroupCo.,Ltd.576,709,537.0023.06--576,709,537.0023.05
ChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.370,878,000.0014.83--370,878,000.0014.83
InfrastructureInvestmentFundManagementCo.,Ltd.–infrastructureInvestmentFundPartnership(LimitedPartnership)64,850,182.002.59--64,850,182.002.59
BroadfordInternationalLimited55,314,208.002.21--55,314,208.002.21
ChinaAfricaDevelopmentFundCo.,Ltd.15,610,368.000.62--15,610,368.000.62
Others269,297,538.0010.77199,900.00-269,497,438.0010.78
Total2,501,308,481.00100.00199,900.00-2,501,508,381.00100.00

42.CapitalReserve

ItemAmountatthebeginningoftheperiodIncreaseDecreaseAmountattheendoftheperiod
Fortheperiodfrom1Januaryto30June2025
I.Capitalpremium36,709,528,363.443,341,011.41-36,712,869,374.85
Including:Capitalcontributedbyinvestors17,108,331,780.583,341,011.41-17,111,672,791.99
Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol13,302,937,205.73--13,302,937,205.73
Differencesarisingfromacquisitionnon-controllinginterests4,624,739,800.75--4,624,739,800.75
Others1,673,519,576.38--1,673,519,576.38
II.Othercapitalreserve653,453,468.23-140,480,321.43512,973,146.80
Including:Transferfromcapitalreserveunderthepreviousaccountingrules-2,781,133.00---2,781,133.00
Unexercisedshare-basedpayment(Note)506,305.80-442,650.0063,655.80
Others655,728,295.43-140,037,671.43515,690,624.00
Total37,362,981,831.673,341,011.41140,480,321.4337,225,842,521.65
2024
I.Capitalpremium36,453,130,588.72256,397,774.72-36,709,528,363.44
Including:Capitalcontributedbyinvestors17,068,816,277.3439,515,503.24-17,108,331,780.58
Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol13,302,937,205.73--13,302,937,205.73
Differencesarisingfromacquisitionnon-controllinginterests4,407,857,529.27216,882,271.48-4,624,739,800.75
Others1,673,519,576.38--1,673,519,576.38
II.Othercapitalreserve623,716,214.3436,140,304.896,403,051.00653,453,468.23
Including:Transferfromcapitalreserveunderthepreviousaccountingrules-2,781,133.00---2,781,133.00
Unexercisedshare-basedpayment6,644,590.36264,766.446,403,051.00506,305.80
Others619,852,756.9835,875,538.45-655,728,295.43
Total37,076,846,803.06292,538,079.616,403,051.0037,362,981,831.67

Note:RefertoNoteXVI.fordetails.

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43.Othercomprehensiveincome

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025ChangesfortheperiodOtherchanges30/06/2025
Pre-taxamountfortheperiodLess:AmountincludedinothercomprehensiveincomeinthepriorperiodbuttransferredtoprofitorlossinthecurrentperiodLess:AmountincludedinothercomprehensiveincomeinthepriorperiodbuttransferredtoretainedearningsinthecurrentperiodLess:IncometaxexpensesAttributabletotheCompany,netoftaxAttributabletonon-controllingshareholders,netoftax
Fortheperiodfrom1Januaryto30June2025
I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss-125,708,734.9710,733,832.29---3,921,414.886,812,417.41--121,787,320.09
Including:Changesarisingfromremeasurementofdefinedbenefitplans-27,162,681.923,260,000.00---208,897.143,051,102.86--26,953,784.78
Othercomprehensiveincomethatcan'tbereclassifiedtoprofitorlossunderequitymethod-157,659,266.077,473,832.29---3,712,517.743,761,314.55--153,946,748.33
Changesinfairvalueofotherequityinstruments59,113,213.02-------59,113,213.02
II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss-1,432,672,502.481,594,865,234.50---641,828,141.27953,037,093.23--790,844,361.21
Including:Othercomprehensiveincomerecognisedundertheequitymethod-401,677,243.85472,024,602.90---229,359,310.24242,665,292.66--172,317,933.61
Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies-1,030,995,258.631,122,840,631.60---412,468,831.03710,371,800.57--618,526,427.60
Totalothercomprehensiveincome-1,558,381,237.451,605,599,066.79---645,749,556.15959,849,510.64--912,631,681.30
2024
I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss-22,859,768.83-221,412,074.80---4,502,591.44-102,848,966.14-114,060,517.22--125,708,734.97
Including:Changesarisingfromremeasurementofdefinedbenefitplans-2,709,609.54-70,324,586.90---11,930.28-24,453,072.38-45,859,584.24--27,162,681.92
Othercomprehensiveincomethatcan'tbereclassifiedtoprofitorlossunderequitymethod-92,749,398.41-133,077,726.79----64,909,867.66-68,167,859.13--157,659,266.07
Changesinfairvalueofotherequityinstruments72,599,239.12-18,009,761.11---4,490,661.16-13,486,026.10-33,073.85-59,113,213.02
II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss-880,766,825.52-1,312,433,197.04----551,905,676.96-760,527,520.08--1,432,672,502.48
Including:Othercomprehensiveincomerecognisedundertheequitymethod-426,790,507.2723,077,622.64---25,113,263.42-2,035,640.78--401,677,243.85
Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies-453,976,318.25-1,335,510,819.68----577,018,940.38-758,491,879.30--1,030,995,258.63
Totalothercomprehensiveincome-903,626,594.35-1,533,845,271.84---4,502,591.44-654,754,643.10-874,588,037.30--1,558,381,237.45

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

44.Specificreserve

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item01/01/2025IncreaseDecrease30/06/2025
Safetyproductioncost40,074,647.2729,422,790.9910,515,851.6358,981,586.63

45.SurplusreserveTheperiodfrom1Januaryto30June2025

Item01/01/2025IncreaseDecrease30/06/2025
Statutorysurplusreserve1,249,537,330.50--1,249,537,330.50

2024

Item01/01/2024IncreaseDecrease31/12/2024
Statutorysurplusreserve1,095,980,563.68153,556,766.82-1,249,537,330.50

Note1:AccordingtotheCompanyLawofthePeople'sRepublicofChinaandtheArticlesoftheCompany,theCompanywithdrawsthestatutorysurplusreserveat10%oftheannualnetprofit.Whentheaccumulatedamountofthestatutorysurplusreservereachesmorethan50%oftheregisteredcapital,itcannolongerbewithdrawn.Thestatutorysurplusreservecanbeusedtocoverlossesorincreasesharecapitalafterapproval.Asof30June2025,theCompany'saccumulatedstatutorysurplusreservehasreached50%ofitsregisteredcapital.

46.Retainedearnings

ItemAmountProportionofappropriationorallocation
Fortheperiodfrom1Januaryto30June2025
Retainedearningsatthebeginningoftheyearbeforeadjustment21,957,778,579.11
Add:AdjustmenttoRetainedearningsatbeginningoftheyear-
Including:Changesinaccountingpolicies-
Retainedearningsatthebeginningoftheyearafteradjustment21,957,778,579.11
Add:NetprofitoftheperiodattributabletoshareholdersoftheCompany2,626,638,199.47
Retainedearningscarriedforwardfromothercomprehensiveincome-
Others454,446.93
Less:Transfertostatutorysurplusreserveinthecurrentperiod-
Transfertodiscretionarysurplusreserveinthecurrentperiod-
Ordinaryshares'dividendspayable1,839,836,697.18Note1
Ordinaryshares'dividendsconvertedintosharecapital-
Pensionbenefitdifference-
TransfertotheNationalCouncilforSocialSecurityFundofthePRC-
Distributiontoholdersofotherequityinstruments-
Others-
Retainedearningsattheendoftheperiod22,745,034,528.33

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

46.Retainedearnings-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemAmountProportionofappropriationorallocation
Fortheyearended31December2024
Retainedearningsatthebeginningoftheyearbeforeadjustment19,045,313,519.75
Add:AdjustmenttoRetainedearningsatbeginningoftheyear-
Including:Changesinaccountingpolicies-
Retainedearningsatthebeginningoftheyearafteradjustment19,045,313,519.75
Add:NetprofitoftheyearattributabletoshareholdersoftheCompany4,516,301,317.16
Retainedearningscarriedforwardfromothercomprehensiveincome-
Less:Transfertostatutorysurplusreserveinthecurrentyear153,556,766.82
Transfertodiscretionarysurplusreserveinthecurrentyear-
Ordinaryshares'dividendspayable1,450,279,490.98
Ordinaryshares'dividendsconvertedintosharecapital-
Pensionbenefitdifference-
TransfertoNationalCouncilofSocialSecurityFund-
Distributiontoholdersofotherequityinstruments-
Others-
Retainedearningsattheendoftheyear21,957,778,579.11

Note1:Accordingtotheresolutionofshareholders'meetingon23May2025,theCompany

planstodistributecashdividendsofRMB7.40(inclusiveoftax)forevery10shares,totallingRMB1,842,769,687.18onthebasisof2,490,229,307shares,whichexcluded11,155,474sharesheldinthesharerepurchasespecialaccountfromthelatesttotalsharecapitalof2,501,384,781shares.Asof30June2025,duetotheexerciseofstockoptionsgrantedundertheequityincentiveplan,thetotalsharecapitaloftheCompanyhasbeenchangedto2,501,508,381shares.Afterdeductingthe15,242,574sharesheldintherepurchasespecialaccount,thetotalis2,486,265,807sharesandbasedonthat,thecashdividenddistributedhasbeenchangedtoRMB1,839,836,697.18.

47.Operatingincomeandoperatingcosts

(1)Detailsofoperatingincomeandoperatingcosts

ItemCurrentperiodPriorperiod
IncomeCostsIncomeCosts
Principaloperation8,382,712,282.794,487,845,467.237,883,718,886.494,278,633,923.81
Otheroperations85,779,093.29108,418,625.2791,474,197.15112,235,371.15
Total8,468,491,376.084,596,264,092.507,975,193,083.644,390,869,294.96

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47.Operatingincomeandoperatingcosts-continued

(2)Breakdowninformationofoperatingincomeandoperatingcosts

CHINAMERCHANTSPORTGROUPCO.,LTD.Categoryofcontracts

CategoryofcontractsPortsoperationBondedlogisticsoperationOtheroperationsTotal
OperatingincomeOperatingcostsOperatingincomeOperatingcostsOperatingincomeOperatingcostsOperatingincomeOperatingcosts
MainlandChina,HongKongandTaiwanarea5,037,474,559.533,065,854,248.06270,611,726.06151,724,369.6985,779,093.29108,418,625.275,393,865,378.883,325,997,243.02
-PearlRiverDelta3,519,011,226.801,776,103,190.68193,338,185.68114,524,391.7285,779,093.29108,418,625.273,798,128,505.771,999,046,207.67
-YangtzeRiverDelta137,755.214,251,608.20----137,755.214,251,608.20
-BohaiRim13,986,156.156,844,764.0977,273,540.3837,199,977.97--91,259,696.5344,044,742.06
-Otherareas1,504,339,421.371,278,654,685.09----1,504,339,421.371,278,654,685.09
Othercountries3,040,042,023.221,246,331,683.0334,583,973.9823,935,166.45--3,074,625,997.201,270,266,849.48
Total8,077,516,582.754,312,185,931.09305,195,700.04175,659,536.1485,779,093.29108,418,625.278,468,491,376.084,596,264,092.50

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

47.Operatingincomeandoperatingcosts-continued

(3)DescriptionofperformanceobligationsTheGroupprovidesportservice,bondedlogisticsserviceandotherservices.Theseservicesareobligationsperformedoveraperiodoftime.Forbondedlogisticsserviceandotherservices,thecustomersevenlyobtainandconsumetheeconomicbenefitsfromtheGroup'sperformanceofcontract,meanwhilethechargingrulesasagreedinthecontracttermsusuallyadoptdaily/monthly/yearlybasis.Duringtheprocessofrenderingservices,theGrouprecognizesrevenueusingstraight-linemethod.Atthesametime,theGroupisprimarilyresponsiblefortheaboveservicesandgenerallydoesnothaveanycommitmenttotheamountofmoneyexpectedtobereturnedtothecustomer.PartoftheGroup'shandlingcontractsareestablishedwithdiscountterms,i.e.,thecustomerswhosebusinessvolumereachesagreedlevel,aregrantedwithpreferentialchargerateordiscount.Attheendoftheperiod,asthebusinessvolumefinallyrealizedwithinthecontractperiodisuncertain,thecontractconsiderationissubjecttovariablefactors.Themanagementincludesthispartofdiscountincontractliabilities,othercurrentliabilitiesandprovisions.Attheendoftheperiod,thevariableconsiderationsarisingfromsalesdiscountaresetoutinNoteVIII.27、NoteVIII.32andNoteVIII.38.

(4)DescriptionsonallocationtoremainingperformanceobligationsAttheendoftheperiod,theamountofrevenuecorrespondingtotheperformanceobligationswhichtheGrouphasenteredintoacontractforbuthasnotfulfilledorcompletelyfulfilledmainlyincludedthecontractliabilitiesofRMB349,057,215.91,ofwhichRMB121,733,239.76isexpectedtoberecognizedasrevenuein2025;andRMB227,323,976.15isexpectedtoberecognizedasrevenuein2026andsubsequentyears.

48.Taxesandsurcharges

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Propertytax38,685,303.2437,432,602.44
Landusetax17,434,069.6417,922,726.00
Cityconstructionandmaintenancetax4,696,513.645,333,385.15
Educationsurchargesandlocaleducationsurcharges3,534,408.663,987,112.95
Stampduty1,572,336.141,772,162.02
Others(Note)110,292,525.1797,135,500.20
Total176,215,156.49163,583,488.76

Note:OthersmainlyrepresentthesocialcontributiontaxandtaxonservicesbornebyTCP,a

subsidiaryoftheCompany,totalledBRL83,744,490.70(equivalenttoRMB104,316,324.84)fortheperiod.

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49.Generalandadministrativeexpenses

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Employeebenefits576,990,389.64620,704,850.52
Depreciationexpenses37,655,932.9635,571,367.42
Feespaidtoagencies16,517,711.1118,415,907.98
Amortizationofintangibleassets16,989,576.2727,872,655.34
Others110,919,499.46105,613,974.92
Total759,073,109.44808,178,756.18

50.Researchanddevelopmentexpenses

ItemCurrentperiodPriorperiod
Employeebenefits74,754,807.7559,561,003.92
DirectmaterialsandoutsourcedR&D22,485,452.9922,767,018.47
Depreciationandamortization2,138,974.741,956,675.62
Others7,751,911.07448,263.29
Total107,131,146.5584,732,961.30

51.Financialexpenses

ItemCurrentperiodPriorperiod
Interestexpenses1,036,682,027.861,169,402,497.01
Including:Bankandotherborrowings392,666,154.34593,824,100.83
Bondinterestandbilldiscount422,786,996.38387,426,105.66
Interestexpensesofterminalmanagementright(Note)131,215,913.75118,016,249.69
Interestexpensesofleaseliabilities55,654,549.5126,893,252.91
Otherinterestexpenses13,479,344.4422,305,423.35
Less:Capitalizedinterestexpenses20,879,069.4420,937,364.57
Less:Interestincome200,788,693.82240,157,542.78
Netexchangeloss16,212,019.9784,715,364.32
Others5,345,702.013,189,819.83
Total836,571,986.58996,212,773.81

Note:DetailsaresetoutinNoteVIII.36.

52.Otherincome

ItemCurrentperiodPriorperiodWhetheritisgovernmentsubsidy
Businessdevelopmentsubsidy94,882,937.7378,537,483.56Yes
Transferfromdeferredincome(NoteVIII.39)25,333,879.7125,422,775.68Yes
Others4,945,738.594,435,948.63——
Total125,162,556.03108,396,207.87——
Including:Governmentgrants123,816,690.60106,509,287.41——

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

53.Investmentincome

(1)Detailsofinvestmentincome:

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Incomefromlong-termequityinvestmentsunderequitymethod3,606,506,212.053,357,745,272.28
Including:Incomefromlong-termequityinvestmentsofassociatesunderequitymethod3,448,250,127.443,173,207,222.52
Incomefromlong-termequityinvestmentsofjointventuresunderequitymethod158,256,084.61184,538,049.76
Investmentincomefromfinancialassetsheldfortrading42,352,582.8235,265,732.57
Dividendincomefrominvestmentsinotherequityinstruments120,000.00-
Investmentincomefromothernon-currentfinancialassets-44,838,893.61
Others3,856,538.50-
Total3,652,835,333.373,437,849,898.46

54.Gainsfromchangesinfairvalue

ItemCurrentperiodPriorperiod
Financialassetsheldfortrading21,035,446.6022,475,938.61
Othernon-currentfinancialassets-443,376,957.50
Including:Financialassetsatfairvaluethroughprofitorloss-443,376,957.50
Total21,035,446.60465,852,896.11

55.Reversalofcreditimpairment

ItemCurrentperiodPriorperiod
I.Creditimpairmentofaccountsreceivable(“-”forlosses)5,740,580.39-461,759.95
II.Creditimpairmentofotherreceivables(“-”forlosses)-961,479.46316,195,849.66
III.Creditimpairmentoflong-termreceivables(“-”forlosses)-85,299.16-7,587.78
Total4,693,801.77315,726,501.93

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56.Impairmentlosses

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Reversalofimpairmentlossesofinventories1,621.20-
Total1,621.20-

57.Gainsfromassetdisposals

ItemCurrentperiodPriorperiodAmountincludedinnon-recurringprofitorlossforthecurrentperiod
Gainsfromdisposalofnon-currentassets6,688,854.69884,468.186,688,854.69
Including:Gainsfromdisposalofintangibleassets6,084,102.84-6,084,102.84
Gainsfromdisposaloffixedassets571,354.19679,465.46571,354.19
Others33,397.66205,002.7233,397.66
Total6,688,854.69884,468.186,688,854.69

58.Non-operatingincome

ItemCurrentperiodPriorperiodAmountincludedinnon-recurringprofitorlossforthecurrentperiod
Compensationreceivedforviolationofcontracts5,238,732.171,173,484.755,238,732.17
Gainsfromretirementordamageofnon-currentassets1,760,337.511,566,507.261,760,337.51
Including:Gainsfromretirementordamageoffixedassets1,760,337.511,566,507.261,760,337.51
Exemptedcurrentaccounts429,567.31824,983.50429,567.31
Insuranceclaims-800,133.81-
Landrentdeduction-52,700.54-
Others10,143,357.0013,120,624.8710,143,357.00
Total17,571,993.9917,538,434.7317,571,993.99

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59.Non-operatingexpenses

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemCurrentperiodPriorperiodAmountincludedinnon-recurringprofitorlossforthecurrentperiod
Litigationloss3,589,845.46-3,589,845.46
Lossesonretirementofnon-currentassets3,586,928.264,703,003.883,586,928.26
Including:Lossesonretirementordamageoffixedassets3,586,928.264,703,003.883,586,928.26
Expenditureonpublicwelfaredonations543,413.08340,995.85543,413.08
Compensationandliquidateddamages242,399.771,801,256.48242,399.77
Others4,826,713.2626,854,371.884,826,713.26
Total12,789,299.8333,699,628.0912,789,299.83

60.Borrowingcosts

ItemCapitalizationrateAmountcapitalized
Constructioninprogress
PhaseIofthesecondphaseofthewharfprojectinthelocaloperationareaofShunkongPortLiaogeMountainPortArea2.78%6,814,983.27
ZhanjiangPortBaomanPortAreaContainerTerminalPhaseIExpansionProject2.65%3,833,013.50
HambantotaPortsubsequentongoingconstructionprojects7.08%1,781,885.21
MachongPortAreaBerth2#and3#ProjectBulkGrainWarehousePhaseIIIExpansionProject2.40%643,272.54
Othernon-currentassets
Advancesforchannels4.35%7,805,914.92
Sub-total20,879,069.44
Interestexpensesincludedinprofitorlossfortheperiod(Excludesinterestexpenseonterminaloperatingrightsandleaseliabilities）828,932,495.16
Total849,811,564.60

Note:Thecapitalizationrateiscalculatedanddeterminedaccordingtotheweightedaverageinterestrateofgeneralborrowings

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61.Translationofforeigncurrencies

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiod
Exchangedifferencesincludedinprofitorlossfortheperiod16,212,019.97
Total16,212,019.97

62.Incometaxexpenses

ItemCurrentperiodPriorperiod
Currentincometaxexpenses686,714,642.78576,566,050.41
Deferredincometaxexpenses41,694,166.54227,952,828.10
Total728,408,809.32804,518,878.51

Reconciliationbetweenincometaxexpenseandaccountingprofitisasfollows:

ItemCurrentperiod
Totalprofit5,808,436,192.34
Incometaxexpensescalculatedat25%1,452,109,048.09
Effectofnon-deductiblecosts,expensesandlosses174,019,153.40
Accruedincometax257,250,626.34
Effectofdeductibletemporarydifferencesanddeductiblelossesforwhichdeferredtaxassetsarenotrecognizedintheyear73,441,412.05
Effectoftax-freeincome(Note)-704,718,084.55
Effectoftaxincentivesandchangesintaxrate-375,207,351.41
Effectofdifferenttaxratesofsubsidiariesoperatinginotherjurisdictions-157,401,218.45
Effectofutilizingdeductiblelossesforwhichdeferredtaxassetswerenotrecognizedinpriorperiod-4,593,569.74
Effectofadjustmentstoincometaxofprioryear722,942.70
Others12,785,850.89
Incometaxexpenses728,408,809.32

Note:Thismainlyrepresentsthetaxeffectofincomefrominvestmentsinjointventuresand

associates.

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63.Assetswithrestrictedownershipanduseright

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item30/06/202531/12/2024
BookvalueCarryingamountTypeofrestrictionStatusofrestrictionBookvalueCarryingamountTypeofrestrictionStatusofrestriction
Cashandbankbalances(Note1)91,732,148.4191,732,148.41Restrictedmargin,interestreceivablenotactuallyreceivedInterestreceivable,performancebond,frozenfunds,etc115,331,146.22115,331,146.22Restrictedmargin,interestreceivablenotactuallyreceivedInterestreceivable,performancebond,frozenfunds,etc
Fixedassets(Note2)942,892,996.29627,351,310.21MortgageMortgageborrowings551,053,503.71467,531,821.78MortgageMortgageborrowings
Intangibleassets(Note3)751,650,703.62611,776,115.79MortgageMortgageborrowings624,297,693.92624,297,693.92MortgageMortgageborrowings
Total1,786,275,848.321,330,859,574.411,290,682,343.851,207,160,661.92————

Note1:DetailsofrestrictedcashandbankbalancesaresetoutinNoteVIII.1.Note2:DetailsofmortgageborrowingsaresetoutinNoteVIII.23andNoteVIII.33.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

.Provisionforimpairmentofassetsandprovisionforbaddebts

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025EffectofchangesinthescopeofconsolidationProvisionfortheperiodReversalfortheperiodWrite-offandcharge-offfortheperiodTransfer-outduetosaleinthecurrentperiodOtherincreasesfortheperiodOtherdecreasesfortheperiodEffectoftranslationoffinancialstatementsdenominatedinforeigncurrencies30/06/2025
Provisionforbaddebtsofaccountsreceivable88,963,445.09-1,419,529.15-7,160,109.54----1,601,188.7784,824,053.47
Provisionforbaddebtsofotherreceivables565,593,638.90-966,666.18-5,186.72----54,336,543.81620,891,662.17
Provisionfordeclineinvalueofinventories1,153,436.72---1,621.20-----7,255.501,144,560.02
Provisionforbaddebtsoflong-termreceivables1,171,441.95-85,311.89-12.73-----1,256,741.11
Provisionforimpairmentoflong-termequityinvestments335,422,262.62--------33,786.19335,388,476.43
Provisionforimpairmentoffixedassets213,290,383.06------42,717.28119,677.03213,367,342.81
Provisionforimpairmentofconstructioninprogress778,478.53--------10,978.93767,499.60
Provisionforimpairmentofintangibleassets57,010,270.07-----42,717.28--57,052,987.35
Provisionforimpairmentofgoodwill970,663,044.33--------970,663,044.33
Othernon-currentassets88,524,171.44--------88,524,171.44
Total2,322,570,572.71-2,471,507.22-7,166,930.19--42,717.2842,717.2856,005,388.992,373,880,538.73

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65.Itemsincashflowstatement

(1)CashrelatingtooperatingactivitiesProceedsfromotheroperatingactivities

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Interestincome187,103,044.10179,018,389.54
Guaranteesanddeposits17,300,555.9321,859,387.49
Governmentgrants13,699,206.4321,136,532.52
Rentals772,764.052,021,910.78
Insuranceindemnities36,776.08932,383.16
Receiptofoperatingcompensation-316,356,000.00
Others215,419,089.12217,476,013.97
Total434,331,435.71758,800,617.46

Paymentforotheroperatingactivities

ItemCurrentperiodPriorperiod
Paymentofoperatingcostsandmanagementexpensesandotherdailyoperatingrelatedexpenditures86,994,106.72101,884,227.23
Advancepayment24,805,804.4272,413,451.97
Guaranteesanddeposits18,129,368.7517,564,575.29
Rentals3,229,287.5513,477,881.80
Portcharges-950,402.70
Others259,964,509.01177,708,320.65
Total393,123,076.45383,998,859.64

(2)CashrelatingtoinvestingactivitiesCashreceiptsrelatingtosignificantinvestingactivities

ItemCurrentperiodPriorperiod
Recoveredstructureddeposits22,390,000,000.0011,200,000,000.00
Dividendsreceived1,340,132,233.831,992,633,200.33
Total23,730,132,233.8313,192,633,200.33

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

65.Itemsincashflowstatement-continued

(2)Cashrelatingtoinvestingactivities-continuedCashpaymentsrelatingtosignificantinvestingactivities

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Purchaseofstructureddeposits21,535,000,000.009,810,000,000.00
Purchaseoflong-termassets1,057,042,867.97915,709,052.44
Total22,592,042,867.9710,725,709,052.44

Proceedsfromotherinvestingactivities

ItemCurrentperiodPriorperiod
CollectionofmarineareausagefeebyShantouPortonbehalfofotherpaties123,815,461.48-
CollectionofmarineareausagefeebyDongguanShenchiwanPortAffairsCo.,Ltd.60,469,329.00-
Others8,997,067.86-
Total193,281,858.34-

Paymentforotherinvestingactivities

ItemCurrentperiodPriorperiod
PaymentofmarineareausagefeebyShantouPort123,613,360.00-
PaymentoftaxesonlandacquisitionbyASJ-259,533,828.27
Others2,095,513.81545,760.17
Total125,708,873.81260,079,588.44

(3)CashrelatingtofinancingactivitiesProceedsfromotherfinancingactivities

ItemCurrentperiodPriorperiod
Saleandleasebackproceeds136,505,690.0040,000,000.00
ReceiptsfromShantouPortshareholder'sadvancepaymentofmarineareausagefees111,500,000.00-
Others7,586,443.41308,276.99
Total255,592,133.4140,308,276.99

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

65.Itemsincashflowstatement-continued

(3)Cashrelatingtofinancingactivities-continuedPaymentforotherfinancingactivities

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
RepurchasesharesoftheCompany269,263,918.22-
PaymentfortheCompany'sacquisitionofnon-controllinginterestsofCMPort-147,607,116.30
Paymentforlease55,860,789.66142,264,009.77
Others55,924,577.761,383,669.41
Total381,049,285.64291,254,795.48

Changesinliabilitiesarisingfromfinancingactivities

Item01/01/2025IncreasefortheperiodDecreasefortheperiod30/06/2025
CashchangesNon-cashchangesCashchangesNon-cashchanges
Short-termborrowings12,791,242,141.694,286,935,768.40197,008,333.794,819,817,641.56150,762,869.6212,304,605,732.70
Long-termborrowings15,582,593,255.65980,838,686.7028,223,006.66-3,822,033,678.5012,769,621,270.51
Non-currentliabilitiesduewithinoneyear10,506,682,795.60-4,593,200,578.393,952,580,509.5421,524,879.4411,125,777,985.01
Bondspayable13,875,559,119.522,000,000,000.00--19,083,999.7715,856,475,119.75
Leaseliabilities1,387,206,990.51-157,797,414.22-63,230,374.761,481,774,029.97
Long-termpayables3,204,582,672.75173,164,189.40342,292,965.26-53,791,066.043,666,248,761.37
Dividendspayable132,334,744.28-3,731,376,497.762,412,101,414.59-1,451,609,827.45
Othercurrentliabilities4,020,214,246.582,000,000,000.0031,441,643.834,048,180,821.92-2,003,475,068.49
Total61,500,415,966.589,440,938,644.509,081,340,439.9115,232,680,387.614,130,426,868.1360,659,587,795.25

(4)TheGrouphasnosignificantcashflowspresentedonanetbasis.

(5)TheGrouphasnosignificantactivitiesthatdonotinvolvecashreceiptsandpaymentfor

thecurrentperiodbuthaveanimpactontheenterprise'sfinancialpositionormayaffecttheenterprise'scashflowsinthefutureandtheirfinancialeffects.

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(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

66.Supplementaryinformationtothecashflowstatement

(1)Supplementaryinformationtothecashflowstatement

CHINAMERCHANTSPORTGROUPCO.,LTD.Supplementaryinformation

SupplementaryinformationCurrentperiodPriorperiod
1.Reconciliationofnetprofittocashflowsfromoperatingactivities:
Netprofit5,080,027,383.025,039,645,709.31
Add:Impairmentlosses-1,621.20-
Reversalofcreditimpairment("-"forgains)-4,693,801.77-315,726,501.93
Depreciationoffixedassets1,015,024,918.96954,005,882.47
Depreciationofinvestmentproperties63,045,293.7291,661,825.39
Depreciationofright-of-useassets132,500,839.22170,714,405.05
Amortizationofintangibleassets363,088,740.75336,084,653.13
Amortizationoflong-termdeferredexpenses50,060,940.1450,836,674.54
Gainsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets-6,688,854.69-884,468.18
Lossesonretirementoffixedassets,intangibleassetsandotherlong-termassets1,826,590.753,136,496.62
Lossesrisingfromchangesinfairvalue("-"forgains)-21,035,446.60-465,852,896.11
Financialexpenses1,026,273,978.911,219,468,426.80
Investmentloss("-"forincome)-3,652,835,333.37-3,437,849,898.46
Decreaseindeferredtaxassets("-"forincrease)-6,410,580.529,960,366.69
Increaseindeferredtaxliabilities48,104,747.06217,992,461.41
Decreaseininventories("-"forincrease)-45,929,114.96-78,955,004.79
Decreaseinoperatingreceivables("-"forincrease)-1,041,823,983.84-697,580,401.64
Increaseinoperatingpayables("-"fordecrease)8,158,621.2125,725,974.73
Netcashinflowfromoperatingactivities3,008,693,316.793,122,383,705.03
2.Significantinvestingandfinancingactivitiesthatdonotinvolvecashreceiptsandpayments:
Conversionofdebtintocapital--
Convertiblebondsduewithinoneyear--
3.Netchangesincashandcashequivalents:
Cashattheendoftheperiod14,904,558,106.7517,306,212,560.80
Less:Openingbalanceofcash16,515,069,554.9116,018,613,631.10
Add:Cashequivalentsattheendoftheperiod--
Less:Openingbalanceofcashequivalents--
Netincreaseincashandcashequivalents-1,610,511,448.161,287,598,929.70

(2)Cashandcashequivalentsattheendoftheperiod

Item30/06/202531/12/2024
I.Cash14,904,558,106.7516,515,069,554.91
Including:Cashonhand179,448.28457,486.90
Bankdepositsavailableforpaymentatanytime14,835,039,302.0716,444,638,576.67
Othermonetaryfundsavailableforpaymentatanytime69,339,356.4069,973,491.34
II.Cashequivalents--
III.Balanceofcashandcashequivalentsattheendoftheperiod14,904,558,106.7516,515,069,554.91

-141-

(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

66.Supplementaryinformationtothecashflowstatement-continued

(3)Paymentfordividends,profitdistributionsorinterest

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Profitdistributions1,839,908,417.00-
Cashpaidforinterestrepayment818,859,469.92978,247,808.88
Dividendsandprofitspaidtonon-controllingshareholdersofsubsidiaries572,192,997.59132,165,604.67
Total3,230,960,884.511,110,413,413.55

(4)TheGrouphasnolimitedscopeofusebutisstilllistedascashandcashequivalents.

(5)SeeNoteVIII.1(3)fordetailsofcashatbankandonhandnotbelongingtocashandcash

equivalents.

-142-

(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

67.Foreigncurrencymonetaryitems

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemForeigncurrencyattheendoftheperiodExchangerateRMBattheendoftheperiod
Cashandbankbalances3,587,379,401.28
Including:HKD27,360,974.330.913024,980,022.34
USD382,712,835.687.16682,742,826,350.75
RMB560,779,913.111.0000560,779,913.11
EUR29,839,857.378.3224248,339,228.98
AUD2,247,664.184.651010,453,886.10
Accountsreceivable619,374,759.99
Including:USD3,934,311.127.166828,196,420.93
EUR71,034,598.088.3224591,178,339.06
Otherreceivables1,749,321,619.39
Including:HKD12,919,725.930.913011,795,451.38
USD85,313,183.337.1668611,422,522.29
EUR3,175,548.298.322426,428,183.09
RMB1,099,625,609.721.00001,099,625,609.72
AUD10,718.754.651049,852.91
Long-termreceivables1,209,684,199.11
Including:HKD2,366,680.970.91302,160,732.39
USD1,023,180.697.16687,332,931.37
EUR25,732,630.818.3224214,157,246.65
AUD212,004,577.234.6510986,033,288.70
Short-termborrowings1,870,000,000.00
Including:RMB1,870,000,000.001.00001,870,000,000.00
Accountspayable48,390,381.98
Including:HKD1,972,327.510.91301,800,695.57
USD589,732.677.16684,226,496.10
EUR5,090,261.268.322442,363,190.31
Otherpayables561,027,218.98
Including:HKD48,618,572.160.913044,387,784.01
USD51,217,584.397.1668367,066,183.81
EUR14,902,959.558.3224124,028,390.56
RMB25,544,860.601.000025,544,860.60
Non-currentliabilitiesduewithinoneyear4,732,557,871.26
Including:USD523,289,432.477.16683,750,310,704.60
RMB982,247,166.661.0000982,247,166.66
Long-termborrowings980,000,000.00
Including:RMB980,000,000.001.0000980,000,000.00
Bondspayable7,856,475,119.75
Including:USD1,096,231,947.287.16687,856,475,119.75
Long-termpayables2,160,732.39
Including:HKD2,366,680.970.91302,160,732.39

-143-

(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

68.Leases

(1)Lessorunderoperatinglease

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemAmount
I.Operatingincome
Leaseincome144,880,756.97
Including:Incomerelatedtovariableleasepaymentsthatarenotincludedinleasereceipts-
II.Undiscountedleasereceiptsreceivedafterthebalancesheetdate551,776,970.32
1styear183,437,222.16
2ndyear114,240,256.82
3rdyear90,420,575.47
4thyear54,337,961.11
5thyear24,157,183.89
Over5years85,183,770.87

Note:TheoperatingleaseswheretheGroupactsasthelessorarerelatedtoportandterminal

facilities,machineryandequipment,vehicles,landandbuildings,withleasetermsrangingfrom0.5yearsto38.5yearsandoptiontorenewtheleaseofportandterminalfacilities,machineryandequipment,landandbuildings.TheGroupconsidersthattheunguaranteedbalanceofleasedassetsdoesnotconstitutesignificantriskoftheGroup,astheassetsareproperlyused.

(2)Lessee

ItemAmount
Interestexpensesonleaseliabilities55,654,549.51
Short-termleaseexpensesthatareaccountedforusingsimplifiedapproachandincludedincostofrelatedassetsorprofitorlossfortheperiod67,888,428.11
Expensesonleasesoflow-valueassets(exclusiveofexpensesonshort-termleasesoflow-valueassets)thatareaccountedforusingsimplifiedapproachandincludedincostofrelatedassetsorprofitorlossfortheperiod-
Variableleasepaymentsthatareincludedincostofrelatedassetsorprofitorlossbutnotincludedinmeasurementofleaseliabilities-
Including:Theportionarisingfromsaleandleasebacktransactions-
Incomefromsub-leaseofright-of-useassets4,048,971.86
Totalcashoutflowsrelatingtoleases83,228,331.74
Lossesfromsaleandleasebacktransactions1,514,667.72
Cashinflowsfromsaleandleasebacktransactions136,505,690.00
Cashoutflowsfromsaleandleasebacktransactions1,569,286.11
Others-

-144-

(VIII)NOTESTOITEMSINTHECONSOLIDATEDFINANCIALSTATEMENTS-continued

68.Leases-continued

(2)Lessee-continuedSaleandleasebacktransactionsandbasisfordetermination:

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

1.Disclosurebynatureofexpenses

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Employeebenefits77,372,354.8760,963,940.03
DirectmaterialsandoutsourcedR&D28,784,861.1930,948,150.57
Depreciationandamortisation2,276,229.671,989,207.01
Others10,671,434.741,209,359.37
Total119,104,880.4795,110,656.98
Including:R&Dexpenditurerecordedasexpenses107,131,146.5584,732,961.30
R&Dexpenditurecapitalised11,973,733.9210,377,695.68

-145-

(IX)R&DEXPENDITURE-continued

2.ExpendituresonR&Dprojectswhichareeligibleforcapitalisation

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item01/01/2025IncreaseDecrease30/06/2025
InternaldevelopmentcostsRecognisedasfixedassetsRecognisedasintangibleassetsTransferredtoprofitorlossfortheperiod
ePortcomprehensiveserviceplatform43,805,653.86--43,805,653.86--
OtherR&Dprojects19,589,399.8312,125,318.891,014,917.781,572,849.78151,584.9728,975,366.19
Total63,395,053.6912,125,318.891,014,917.7845,378,503.64151,584.9728,975,366.19

-146-

(X)CHANGESINSCOPEOFCONSOLIDATION

1.BusinesscombinationnotinvolvingenterprisesundercommoncontrolInJanuary2025,ChinaUnitedTallyCo.,Ltd.Shantou(hereinafterreferredtoas'ChinaTally'),anassociateoftheCompany’ssubsidiaryShantouPort,absorbedShantouZhongliWailuntallyCo.,Ltd.(hereinafterreferredtoas'ShantouZhongli'),asubsidiaryofShantouPort.Afterthetransaction,ShantouPortholds62.50%sharesofChinaTally,whichcontributstobusinesscombinationnotinvolvingenterprisesundercommoncontrol.Consequently,ChinaTallyhasbeeninthescopeofconsolidationforthecurrentperiod.ShantouZhongliwasderegisteredon14February2025afterthetransaction.

2.BusinesscombinationunderthecommoncontrolThereisnobusinesscombinationunderthecommoncontroloftheGroupinthecurrentperiod.

3.ReversepurchaseTheGrouphasnoreversepurchaseinthecurrentperiod.

4.DisposalofsubsidiariesTheGrouphasnodisposalofsubsidiariesinthecurrentperiod.

5.ChangeinconsolidationscopeforotherreasonsTheGrouphasnotchangedtheconsolidationscopeforotherreasonsinthecurrentperiod.

-147-

(XI)EQUITYINOTHERENTITIES

1.Interestsinsubsidiaries

(1)CompositionoftheGroup-Majorsubsidiaries

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthesubsidiary

NameofthesubsidiaryPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessRegisteredcapital(RMB'0000,unlessotherwisespecified)ShareholdingratiooftheCompany(%)Acquisitionmethod
DirectIndirect
ShenzhenChiwanInternationalFreightAgencyCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices550.00100.00-Establishedthroughinvestment
ChiwanPortandShipping(HongKong)Co.,Ltd.(hereinafterreferredtoas"WharfHoldingsHongKong")HKChinaHKChinaInvestmentholdingHKD1,000,000100.00-Establishedthroughinvestment
DongguanShenchiwanPortAffairsCo.,Ltd.DongguanChinaDongguanChinaLogisticssupportservices45,000.0085.00-Establishedthroughinvestment
DongguanShenchiwanWharfCo.,Ltd.DongguanChinaDongguanChinaLogisticssupportservices40,000.00100.00-Establishedthroughinvestment
ShenzhenChiwanHarborContainerCo.Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices28,820.00100.00-Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenChiwanPortDevelopmentCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices10,000.00100.00-Businesscombinationinvolvingenterprisesundercommoncontrol
ChiwanContainerTerminalCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservicesUSD95,300,00055.0020.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenChiwanTugboatCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices2,400.00100.00-Businesscombinationinvolvingenterprisesundercommoncontrol
ChiwanShipping(HongKong)LimitedHKChinaHKChinaLogisticssupportservicesHKD800,000100.00-Businesscombinationinvolvingenterprisesundercommoncontrol
CMPort(Note1)HKChinaHKChinaInvestmentholdingHKD48,730,938,8000.3749.30Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsBondedLogisticsCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices70,000.0040.0060.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsInternationalTechnologyCo.,Ltd.(hereinafterreferredtoas‘CMInternationalTech')ShenzhenChinaShenzhenChinaITservice8,784.8256.2643.74Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsInternational(China)InvestmentCo.,Ltd.ShenzhenChinaShenzhenChinaInvestmentholdingUSD67,400,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsInternationalContainerTerminal(Qingdao)Co.,Ltd.QingdaoChinaQingdaoChinaLogisticssupportservicesUSD206,300,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsContainerServicesLimitedHKChinaHKChinaLogisticssupportservicesHKD500,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsPort(Shenzhen)Co.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices55,000.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenHaiqinProjectManagementCo.,Ltd.ShenzhenChinaShenzhenChinaEngineeringsupervisionservice1,000.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
AntonjeWharfStorageService(Shenzhen)Co.,Ltd.ShenzhenChinaShenzhenChinaPreparationforthewarehousingprojectHKD100,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ASJShenzhenChinaShenzhenChinaPreparationforthewarehousingprojectHKD520,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsInternationalTerminal(Qingdao)Co.,Ltd.QingdaoChinaQingdaoChinaLogisticssupportservicesUSD44,000,000-90.10Businesscombinationinvolvingenterprisesundercommoncontrol
CICTSriLankaSriLankaLogisticssupportservicesUSD150,000,100-85.00Businesscombinationinvolvingenterprisesundercommoncontrol
MagangGodown&WharfShenzhenChinaShenzhenChinaLogisticssupportservices33,500.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ZhangzhouChinaMerchantsTugboatCo.,Ltd.ZhangzhouChinaZhangzhouChinaLogisticssupportservices1,500.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ZhangzhouChinaMerchantsPortCo.,Ltd.ZhangzhouChinaZhangzhouChinaLogisticssupportservices122,700.000-60.00Businesscombinationinvolvingenterprisesundercommoncontrol
ZhangzhouInvestmentPromotionBureauXiamenwanPortAffairsCo.,Ltd.(hereinafterreferredtoas"XiamenwanPortAffairs")(Note2)ZhangzhouChinaZhangzhouChinaLogisticssupportservices44,450.00-31.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShekouContainerTerminalsLtd.ShenzhenChinaShenzhenChinaLogisticssupportservicesHKD618,201,200-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenLianyunjieContainerTerminalsCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices60,854.90-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
AnxunjieContainerTerminals(Shenzhen)Co.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices127,600.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
AnyunjiePortWarehousingService(Shenzhen)Co.,Ltd.ShenzhenChinaShenzhenChinaPreparationforthewarehousingproject6,060.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol

-148-

(XI)EQUITYINOTHERENTITIES-continued

1.Interestsinsubsidiaries-continued

(1)CompositionoftheGroup-Majorsubsidiaries-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthesubsidiary

NameofthesubsidiaryPrincipalplaceofbusinessPlaceofincorporationNatureofbusinessRegisteredcapital(RMB'0000,unlessotherwisespecified)ShareholdingratiooftheCompany(%)Acquisitionmethod
DirectIndirect
ShenzhenHaixingShenzhenChinaShenzhenChinaLogisticssupportservices53,072.92-67.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenLianyongtongTerminalCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservicesUSD7,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
YidePortFoshanChinaFoshanChinaLogisticssupportservices21,600.0051.00-Businesscombinationinvolvingenterprisesundercommoncontrol
MegaSCTBVIBVIInvestmentholdingUSD120.00-80.00Businesscombinationinvolvingenterprisesundercommoncontrol
OasisKingInternationalLimitedBVIBVIInvestmentholdingUSD100.00-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
LomeContainerTerminalS.A.(Note3)RepublicofTogoRepublicofTogoLogisticssupportservicesXOF200,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
GainproResourcesLimitedBVIBVIInvestmentholdingUSD1.00-76.47Businesscombinationinvolvingenterprisesundercommoncontrol
HambantotaInternationalPortGroup(Private)LimitedSriLankaSriLankaLogisticssupportservicesUSD1,145,480,000-85.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShantouportShantouChinaShantouChinaLogisticssupportservices12,500.00-60.00Businesscombinationinvolvingenterprisesundercommoncontrol
ShenzhenJinyuRongtaiInvestmentDevelopmentCo.,Ltd.ShenzhenChinaShenzhenChinaPropertylease,etc.80,000.00-100.00Assetacquisition
ShenzhenMerchantsQianhaiwanRealEstateCo.,Ltd.ShenzhenChinaShenzhenChinaPropertylease,etc.20,000.00-100.00Assetacquisition
JuzhongzhiInvestment(Shenzhen)Co.,Ltd.ShenzhenChinaShenzhenChinaInvestmentconsulting4,000.00-75.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaTallyShantouChinaShantouChinaLogisticssupportservices380.00-62.50Businesscombinationnotinvolvingenterprisesundercommoncontrol
ShenzhenLiandaTugboatCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices3,000.00-60.29Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaOceanShippingTallyZhangzhouCo.,Ltd.ZhangzhouChinaZhangzhouChinaLogisticssupportservices200.00-84.00Businesscombinationinvolvingenterprisesundercommoncontrol
ChinaMerchantsHoldings(Djibouti)FZEDjiboutiDjiboutiLogisticssupportservicesUSD38,140,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
XindaResourcesLimitedBVIBVIInvestmentholdingUSD107,620,000-77.45Businesscombinationinvolvingenterprisesundercommoncontrol
KongRiseDevelopmentLimitedHKChinaHKChinaInvestmentholdingUSD107,620,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
TCPBrazilBrazilLogisticssupportservicesBRL68,851,600-100.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
DirecetAchieveInvestmentsLimitedHKChinaHKChinaInvestmentholdingUSD814,781,300-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
ZhoushanRoRoZhoushanChinaZhoushanChinaLogisticssupportservices17,307.8651.00-Assetacquisition
ShenzhenHaixingLogisticsDevelopmentCo.,Ltd.ShenzhenChinaShenzhenChinaLogisticssupportservices7,066.79-100.00Assetacquisition
ZhanjiangPortZhanjiangChinaZhanjiangChinaLogisticssupportservices587,420.9130.7827.58Businesscombinationnotinvolvingenterprisesundercommoncontrol
ZhanjiangPortInternationalContainerTerminalCo.,Ltd.ZhanjiangChinaZhanjiangChinaLogisticssupportservices60,000.00-80.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ZhanjiangPortPetrochemicalTerminalCo.,Ltd.(Note4)ZhanjiangChinaZhanjiangChinaLogisticssupportservices18,000.00-50.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ChinaOceanShippingTallyCo.,Ltd.,ZhanjiangZhanjiangChinaZhanjiangChinaLogisticssupportservices300.00-84.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ZhanjiangPortDonghaidaoBulkCargoTerminalCo.,Ltd.ZhanjiangChinaZhanjiangChinaLogisticssupportservices5,000.00-100.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ZhanjiangPortLogisticsZhanjiangChinaZhanjiangChinaLogisticssupportservices10,000.00-100.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
GuangdongZhanjiangPortLongtengShippingCo.,Ltd.ZhanjiangChinaZhanjiangChinaLogisticssupportservices9,000.00-51.00Businesscombinationnotinvolvingenterprisesundercommoncontrol
ShantouHarborTowageServiceCo.,Ltd.ShantouChinaShantouChinaLogisticssupportservices1,000.00-100.00Establishedthroughinvestment
SanyaMerchantsPortDevelopmentCo.,Ltd.SanyaChinaSanyaChinaLogisticssupportservices1,000.0051.00-Establishedthroughinvestment
ChinaMerchantsHarborModernLogisticsTechnology(Shenzhen)Co.,Ltd.(Originalname:ChinaDivisionofMalaiWarehousing(Shenzhen)Co.,Ltd.)ShenzhenChinaShenzhenChinaOwningChinaQianhaipropertyHKD1,600,000,000-100.00Businesscombinationinvolvingenterprisesundercommoncontrol
PortsDevelopment(HongKong)LimitedHongKongChinaHongKongChinaInvestmentholding2,768,291.56100.00-Establishedthroughinvestment
ShunkongPortFoshanChinaFoshanChinaLogisticssupportservices27,997.5951.00-Assetacquisition
SouthAsiaTradeandLogisticsCenterCo.,Ltd.SriLankaSriLankaLogisticssupportservicesUSD37,140,000-70.00Establishedthroughinvestment
NPHIndonesiaIndonesiaLogisticssupportservicesIDR281,394,199,00051.00-Businesscombinationnotinvolvingenterprisesundercommoncontrol

-149-

(XI)EQUITYINOTHERENTITIES-continued

1.Interestsinsubsidiaries-continued

(1)CompositionoftheGroup-Majorsubsidiaries-continuedNote1:ChinaMerchantsGroup(HongKong)Co.,Ltd.(hereinafterreferredtoas"CMHK")

accountsfor21.85%ofthetotalissuedordinarysharesofChinaMerchantsPortHoldings.On19June2018,theCompanysignedtheAgreementonConcertedActionofChinaMerchantsPortHoldingsLimitedwithCMHK.Accordingtotheagreement,CMHKhasthevotingrightofChinaMerchantsPortHoldingsentrustedtoexercise,whenvotingonthematterstobeconsideredattheGeneralMeetingofPortHoldingShareholdersofChinaMerchantsGroup,theyareunconditionallyconsistentwiththeCompany,andtheopinionsoftheCompanyshallprevail.InMarch2022,theCompanytransferred43.00%ofthesharesheldbyChinaMerchantsGroupPortHoldingstoitsHongKongwholly-ownedsubsidiaryPortDevelopment(HongKong)Co.,Ltd.Therefore,theGroupholds71.52%ofthevotingrightsofChinaMerchantsGroupPortHoldingsintotal,andcancontrolit.Note2:TheGroupsignedtheEquityCustodyAgreementwithChinaMerchantsZhangzhou

DevelopmentZoneCo.,Ltd.,whichagreedthatChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.entrustedits29%equityofXiamenwanPortAffairstotheGroupforoperationandmanagement.Therefore,theGrouphas60%ofthevotingrightsinXiamenwanPortAffairs,whichcanbecontrolledandincludedintheconsolidationscopeoftheGroup'sconsolidatedfinancialstatements.Note3:TheGrouphastherighttocontrolLomeContainerTerminalS.A.byappointingmost

membersoftheExecutiveCommittee,sotheGroupincludesthecompanyintotheconsolidationscopeoftheconsolidatedfinancialstatements.Note4:TheGroupholds50%equityinterestinZhanjiangPortPetrochemicalTerminalCo.,Ltd.

Accordingtotheagreement,theGrouphascontroloverZhanjiangPortPetrochemicalTerminalCo.,Ltd.,andthereforeincludesitinthescopeofconsolidationoftheconsolidatedfinancialstatements.

-150-

(XI)EQUITYINOTHERENTITIES-continued

1.Interestsinsubsidiaries-continued

(2)Significantnon-wholly-ownedsubsidiariesFortheperiodfrom1Januaryto30June2025

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofthe

subsidiary

NameofthesubsidiaryProportionofownershipinterestheldbythenon-controllingshareholders(%)Profitorlossattributabletonon-controllingshareholdersinthecurrentperiodDividendsdistributedtonon-controllingshareholdersinthecurrentperiodBalanceofnon-controllinginterestsattheendoftheperiod
CMPort50.332,449,708,871.88440,068,548.3663,381,939,753.07

Year2024

NameofthesubsidiaryProportionofownershipinterestheldbythenon-controllingshareholders(%)Profitorlossattributabletonon-controllingshareholdersinthecurrentyearDividendsdistributedtonon-controllingshareholdersinthecurrentyearBalanceofnon-controllinginterestsattheendoftheyear
CMPort50.334,277,480,912.411,774,966,740.9261,825,440,800.08

-151-

(XI)EQUITYINOTHERENTITIES-continued

1.Interestsinsubsidiaries-continued

(3)Majorfinancialinformationofsignificantnon-wholly-ownedsubsidiaries

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthesubsidiary

Nameofthesubsidiary30/06/202531/12/2024
CurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilitiesCurrentassetsNon-currentassetsTotalassetsCurrentliabilitiesNon-currentliabilitiesTotalliabilities
CMPort17,880,665,738.12136,980,632,635.58154,861,298,373.7023,112,888,817.3222,781,346,144.5645,894,234,961.8815,225,606,631.78135,382,012,965.53150,607,619,597.3122,281,042,457.0721,803,874,037.9644,084,916,495.03

Nameofthesubsidiary

NameofthesubsidiaryCurrentperiodPriorperiod
OperatingincomeNetprofitTotalcomprehensiveincomeCashflowsfromoperatingactivitiesOperatingincomeNetprofitTotalcomprehensiveincomeCashflowsfromoperatingactivities
CMPort6,057,106,986.044,239,037,402.685,736,186,323.652,357,593,864.345,358,500,426.444,328,318,286.063,762,456,581.362,326,973,972.98

-152-

(XI)EQUITYINOTHERENTITIES-continued

2.Transactionsresultingfromchangesinownershipinterestsinsubsidiarieswithout

losingcontroloverthesubsidiariesDuringthisperiod,therewerenochangesoftheGroupinownershipinterestsinsubsidiarieswithoutlosingcontroloverthesubsidiaries.

3.Interestsinjointventuresandassociates

(1)Significantjointventuresorassociates

CHINAMERCHANTSPORTGROUPCO.,LTD.Investee

InvesteePrincipalplaceofbusinessPlaceofregistrationNatureofbusinessProportionofownershipinterestsheldbytheGroup(%)Proportionofvotingrights(%)Accountingtreatmentofinvestmentsinassociates
DirectIndirect
Associate
SIPGShanghai,ChinaShanghai,ChinaPortandcontainerterminalbusiness-28.0528.05Equitymethod
NingboZhoushanNingbo,ChinaNingbo,ChinaPortandcontainerterminalbusiness20.982.1023.08Equitymethod

-153-

(XI)EQUITYINOTHERENTITIES-continued

4.Keyfinancialinformationofsignificantassociate

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemSIPG
30/06/2025/Currentperiod31/12/2024/Priorperiod
Currentassets54,790,920,877.1548,744,038,847.45
Including:Cashandcashequivalents38,796,420,230.1932,830,782,585.55
Non-currentassets167,734,778,677.29163,311,502,225.58
Totalassets222,525,699,554.44212,055,541,073.03
Currentliabilities29,941,589,303.0923,068,287,468.52
Non-currentliabilities41,639,203,435.1241,578,448,514.91
Totalliabilities71,580,792,738.2164,646,735,983.43
Netassets150,944,906,816.23147,408,805,089.60
Non-controllinginterests14,334,443,094.8714,101,913,028.59
NetassetsattributabletoownersoftheCompany136,610,463,721.36133,306,892,061.01
Shareofnetassetscalculatedbasedontheproportionofownershipinterests38,319,235,073.8437,392,583,223.11
Adjustments
-Goodwill2,427,508,397.272,427,508,397.27
-Others219,672,726.40222,282,154.18
Carryingamountofequityinvestmentsinassociates40,966,416,197.5140,042,373,774.56
Fairvalueofpubliclyquotedequityinvestmentsinassociates37,293,796,344.9539,971,634,611.40
Operatingincome19,569,225,716.5419,837,572,517.98
Netprofit8,744,512,925.739,027,010,146.72
Netprofitattributabletotheowneroftheparentcompanyoftheinvesteeinthecurrentperiod8,039,559,323.218,415,622,120.68
Othercomprehensiveincome66,040,994.7823,253,380.05
Totalcomprehensiveincome8,810,553,920.519,050,263,526.77
Dividendsreceivedfromassociatesinthecurrentperiod947,040,362.541,123,385,809.34

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(XI)EQUITYINOTHERENTITIES-continued

4.Keyfinancialinformationofsignificantassociate-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemNingboZhoushan
30/06/2025/Currentperiod31/12/2024/Priorperiod
Currentassets19,815,599,000.0015,453,223,000.00
Including:Cashandcashequivalents9,902,297,000.004,586,107,000.00
Non-currentassets98,492,046,000.0097,445,761,000.00
Totalassets118,307,645,000.00112,898,984,000.00
Currentliabilities22,924,560,000.0017,449,594,000.00
Non-currentliabilities8,872,462,000.009,899,823,000.00
Totalliabilities31,797,022,000.0027,349,417,000.00
Netassets86,510,623,000.0085,549,567,000.00
Non-controllinginterests7,510,343,000.007,256,126,000.00
NetassetsattributabletoownersoftheCompany79,000,280,000.0078,293,441,000.00
Shareofnetassetscalculatedbasedontheproportionofownershipinterests18,233,264,624.0018,070,126,182.80
Adjustments
-Goodwill1,231,115,756.871,231,115,756.87
-Others118,980,389.80120,244,072.03
Carryingamountofequityinvestmentsinassociates19,583,360,770.6719,421,486,011.70
Fairvalueofpubliclyquotedequityinvestmentsinassociates16,431,475,736.7017,284,475,843.25
Operatingincome14,914,506,000.0014,442,173,000.00
Netprofit2,911,104,000.002,502,531,000.00
Netprofitattributabletotheowneroftheparentcompanyoftheinvesteeinthecurrentperiod2,597,046,000.002,233,429,000.00
Othercomprehensiveincome-44,008,000.0055,859,000.00
Totalcomprehensiveincome2,867,096,000.002,558,390,000.00
Dividendsreceivedfromassociatesinthecurrentperiod484,863,218.46408,578,523.82

Note:NingboZhoushan'sfinancialdataareaccuratetothenearestRMB1,000.00.

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(XI)EQUITYINOTHERENTITIES-continued

5.Summarizedfinancialinformationofinsignificantassociatesandjointventures

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item30/06/2025/Currentperiod31/12/2024/Priorperiod
Jointventures:
Totalcarryingamountofinvestments9,509,894,080.649,307,873,045.30
Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest
-Netprofit158,256,084.61184,538,049.76
-Othercomprehensiveincome1,925,795.27-
-Totalcomprehensiveincome160,181,879.88184,538,049.76
Associates:
Totalcarryingamountofinvestments31,715,702,333.1431,246,297,063.40
Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest
-Netprofit594,163,234.98297,969,374.46
-OthercomprehensiveIncome467,648,840.32-113,060,474.11
-Totalcomprehensiveincome1,061,812,075.30184,908,900.35

6.TheinvesteeswheretheGroupholdslong-termequityinvestmentsarenotrestricted

totransferfundstotheGroup.(XII)GOVERNMENTGRANTS

1.Governmentgrantsrecognisedasreceivablesattheendofcurrentperiod

Balanceofreceivablesattheendofcurrentperiod-

2.Liabilitiesinvolvinggovernmentgrants

Item01/01/2025NewgovernmentgrantsAmountincludedinnon-operatingincomeAmountincludedinotherincomeOtherchanges30/06/2025Relatedtoassets/income
Deferredincome1,268,975,316.614,587,059.60-25,333,879.71-1,248,228,496.50Relatedtoassets
Total1,268,975,316.614,587,059.60-25,333,879.71-1,248,228,496.50——

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(XII)GOVERNMENTGRANTS-continued

3.Governmentgrantsincludedinprofitorloss

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Businessdevelopmentsubsidy94,882,937.7378,537,483.56
Earmarkedfundsforinnovation2,609,378.802,004,500.00
Others990,494.36544,528.17
Total98,482,810.8981,086,511.73

(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS

TheGroup'smajorfinancialinstrumentsincludecashandbankbalances,financialassetsheldfortrading,billsreceivable,accountsreceivable,otherreceivables,long-termreceivables,othernon-currentfinancialassets,borrowings,billspayable,accountspayable,otherpayables,othercurrentliabilities,non-currentliabilitiesduewithinoneyear,bondspayable,long-termpayables,othernon-currentliabilities,etc.DetailsofthesefinancialinstrumentsaredisclosedinNoteVIII.Therisksassociatedwiththesefinancialinstrumentsandthepoliciesonhowtomitigatetheserisksaresetoutbelow.ManagementoftheGroupmanagesandmonitorstheseexposurestoensuretherisksaremonitoredatacertainlevel.TheGroupadoptssensitivityanalysistechniquetoanalysehowtheprofitandlossfortheperiodandshareholders'equitywouldhavebeenaffectedbyreasonablypossiblechangesintherelevantriskvariables.Asitisunlikelythatriskvariableswillchangeinanisolatedmanner,andtheinterdependenceamongriskvariableswillhavesignificanteffectontheamountultimatelyinfluencedbythechangesinasingleriskvariable,thefollowingarebasedontheassumptionthatthechangeineachriskvariableisonastand-alonebasis.

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

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(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued

1.Riskmanagementobjectives,policiesandprocedures,andchangesfortheperiod

-continued

1.1Marketrisk

1.1.1CurrencyriskCurrencyriskistheriskthatlosseswilloccurbecauseofchangesinforeignexchangerates.TheGroup'sexposuretothecurrencyriskisprimarilyassociatedwithHKD,USD,EURandAUS.Exceptforpartofthepurchasesandsales,theGroup'sotherprincipalactivitiesaredenominatedandsettledinRMB.Asat30June2025,thebalancesoftheGroup'sassetsandliabilitiesarebothdenominatedinfunctionalcurrency,exceptthattheassetsandliabilitiessetoutbelowarerecordedusingforeigncurrencies.CurrencyriskarisingfromtheforeigncurrencybalanceofassetsandliabilitiesmayhaveimpactontheGroup'sperformance.

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

Item30/06/202531/12/2024
Cashandbankbalances693,872,833.201,234,472,138.05
Accountsreceivable28,196,420.9310,116,992.50
Otherreceivables1,879,265,519.88697,525,377.19
Long-termreceivables1,202,351,267.741,097,372,535.36
Short-termborrowings1,870,000,000.002,480,000,000.00
Accountspayable6,027,191.673,693,796.53
Otherpayables384,906,471.02282,056,319.78
Non-currentliabilitiesduewithinoneyear982,247,166.661,998,687,491.69
Long-termborrowings980,000,000.002,350,000,000.00
Long-termpayables2,160,732.39-

TheGroupcloselymonitorstheeffectsofchangesintheforeignexchangeratesontheGroup'scurrencyriskexposures.Accordingtothecurrentriskexposureandjudgmentontheexchangeratemovements,themanagementconsidersitisunlikelythattheexchangeratechangesinthenextyearwillresultinsignificantlosstotheGroup.

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(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued

1.Riskmanagementobjectives,policiesandprocedures,andchangesfortheperiod

-continued

1.1Marketrisk-continued

1.1.1Currencyrisk-continuedSensitivityanalysisoncurrencyriskOnthebasisoftheaboveassumption,whereallothervariablesareheldconstant,thereasonablypossiblechangesintheforeignexchangeratemayhavethefollowingpre-taxeffectontheprofitorlossfortheperiodandshareholders'equity:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemChangesinexchangerateCurrentperiodPriorperiod
EffectonprofitEffectonshareholders'equityEffectonprofitEffectonshareholders'equity
Allforeigncurrencies5%increaseagainstRMB-109,869,325.22-109,869,325.22-256,433,226.39-256,430,949.87
Allforeigncurrencies5%decreaseagainstRMB109,869,325.22109,869,325.22256,433,226.39256,430,949.87
Allforeigncurrencies5%increaseagainstUSD2,588,238.112,588,238.112,864,804.012,864,804.01
Allforeigncurrencies5%decreaseagainstUSD-2,588,238.11-2,588,238.11-2,864,804.01-2,864,804.01
Allforeigncurrencies5%increaseagainstHKD23,432,819.1523,432,819.15-300,129.36-300,129.36
Allforeigncurrencies5%decreaseagainstHKD-23,432,819.15-23,432,819.15300,129.36300,129.36
Allforeigncurrencies5%increaseagainstEUR(includingFCFA)12,938,640.5712,938,640.5711,613,515.1911,613,515.19
Allforeigncurrencies5%decreaseagainstEUR(includingFCFA)-12,938,640.57-12,938,640.57-11,613,515.19-11,613,515.19
Allforeigncurrencies5%increaseagainstAUD49,826,851.3949,826,851.3950,495,271.6450,495,271.64
Allforeigncurrencies5%decreaseagainstAUD-49,826,851.39-49,826,851.39-50,495,271.64-50,495,271.64

1.1.2Interestraterisk-changesincashflowsRiskofchangesincashflowsoffinancialinstrumentsarisingfrominterestratechangesismainlyrelatedtobankloanswithfloatinginterestrate.(SeeNoteVIII.23andNoteVIII.33).TheGroupcontinuouslyandcloselymonitorstheimpactofinterestratechangesontheGroup'sinterestraterisk.TheGroup'spolicyistomaintaintheseborrowingsatfloatingrates.Presently,theGrouphasnoarrangementsuchasinterestrateswaps.

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(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued

1.Riskmanagementobjectives,policiesandprocedures,andchangesfortheperiod

-continued

1.1Marketrisk-continued

1.1.2Interestraterisk-changesincashflows-continuedSensitivityanalysisoninterestrateriskSensitivityanalysisoninterestrateriskisbasedonthefollowingassumptions:

?Fluctuationsofmarketinterestratecanaffecttheinterestincomeorexpenseofafinancial

instrumentwithfloatinginterestrate;?Forafinancialinstrumentatfairvaluewithfixedinterestrate,thefluctuationsofmarketinterest

ratecanonlyaffectitsinterestincomeorexpense;?Foraderivativefinancialinstrumentdesignatedashedginginstrument,thefluctuationsofmarket

interestrateaffectitsfairvalue,andallinterestratehedgesareexpectedtobehighlyeffective;?Thechangesinfairvalueofderivativefinancialinstrumentsandotherfinancialassetsand

liabilitiesarecalculatedusingcashflowdiscountingmethodbyapplyingthemarketinterestrateat

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

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemChangesininterestrateCurrentperiodPriorperiod
EffectonprofitEffectonshareholders'equityEffectonprofitEffectonshareholders'equity
Short-termborrowingsandlong-termborrowings1%increase-288,393,208.38-288,393,208.38-311,872,062.49-311,872,062.49
Short-termborrowingsandlong-termborrowings1%decrease288,393,208.38288,393,208.38311,872,062.49311,872,062.49

1.2CreditriskAsat30June2025,theGroup'smaximumexposuretocreditriskwhichmaycauseafinanciallosstotheGroupduetofailuretodischargeanobligationbythecounterpartiesandfinancialguaranteesissuedbytheGroup(withoutconsideringtheavailablecollateralorothercreditenhancements)isarisingfromcashandbankbalances(NoteVIII.1),billsreceivable(NoteVIII.

3),accountsreceivable(NoteVIII.4),otherreceivables(NoteVIII.6),long-termreceivables(NoteVIII.10),etc.Atthebalancesheetdate,thecarryingamountsoftheGroup'sfinancialassetsrepresentitsmaximumexposuretocreditrisk.Inaddition,theGroup'smaximumcreditriskexposuretocreditlossesincludestheamountoffinancialguaranteecontractasdisclosedinNoteXVII.2"Contingencies".Forfinancialinstrumentsmeasuredatfairvalue,thebookvaluereflectsitsriskexposure,butnotthemaximumriskexposure,anditsmaximumriskexposurewillchangewiththechangeoffuturefairvalue.

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(XIII)RISKSASSOCIATEDWITHFINANCIALINSTRUMENTS-continued

1.Riskmanagementobjectives,policiesandprocedures,andchangesfortheperiod

-continued

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

1.3LiquidityriskInthemanagementoftheliquidityrisk,theGroupmonitorsandmaintainsalevelofcashandcashequivalentsdeemedadequatebythemanagementtofinancetheGroup'soperationsandmitigatetheeffectsoffluctuationsincashflows.Themanagementmonitorstheutilisationofbankborrowingsandensurescompliancewithloancovenants.Asat30June2025,theGrouphadtotalcurrentliabilitiesinexcessoftotalcurrentassetsofRMB6,909,487,536.70.Asat30June2025,theGrouphadavailableandunusedlineofcreditandbondsamountingtoRMB67,193,291,009.55,whichisgreaterthanthebalanceofthenetcurrentliabilities.TheGroupcanobtainfinancialsupportfromtheavailablelineofcreditandbondswhenneeded.Therefore,theGroup'smanagementbelievesthattheGrouphasnosignificantliquidityrisk.ThefollowingisthematurityanalysisforfinancialfinancialliabilitiesheldbytheGroupwhichisbasedonundiscountedremainingcontractualobligations:

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCarryingamountWithin1year1to5yearsOver5yearsTotal
Short-termborrowings12,304,605,732.7012,438,627,969.48--12,438,627,969.48
Accountspayable675,684,712.35675,684,712.35--675,684,712.35
Otherpayables3,101,766,024.673,101,766,024.67--3,101,766,024.67
Non-currentliabilitiesduewithinoneyear11,065,609,420.7312,062,420,043.91--12,062,420,043.91
Othercurrentliabilities2,202,056,590.492,213,557,412.41--2,213,557,412.41
Long-termborrowings12,769,621,270.51-11,216,820,125.332,293,087,944.5613,509,908,069.89
Bondspayable15,856,475,119.75-15,479,296,706.721,657,873,972.6017,137,170,679.32
Leaseliabilities1,481,774,029.97-576,288,655.222,701,490,414.593,277,779,069.81
Long-termpayables3,659,967,945.08-912,345,492.054,835,108,741.405,747,454,233.45

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(XIV)DISCLOSUREOFFAIRVALUE

1.Assetsandliabilitiesmeasuredatfairvalueattheendoftheperiod

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemFairvalueasat30/06/2025
Level1Level2Level3Total
FairvaluemeasurementFairvaluemeasurementFairvaluemeasurement
Continuouslymeasuredatfairvalue
Financialassetsheldfortrading-4,833,561,128.78-4,833,561,128.78
Investmentsinotherequityinstruments--139,451,887.05139,451,887.05
Othernon-currentfinancialassets--28,524,600.3128,524,600.31
Totalassetscontinuouslymeasuredatfairvalue-4,833,561,128.78167,976,487.365,001,537,616.14

2.Qualitativeandquantitativeinformationofvaluationtechniquesandkeyparameters

adoptedforitemscontinuouslymeasuredatlevel2fairvalue

ItemFairvalueasat30/06/2025ValuationtechniquesInputs
Financialassetsheldfortrading4,833,561,128.78CashflowdiscountingExpectedrateofreturn

Thefairvalueofdebtinstrumentsatfairvaluethroughprofitorlossisdeterminedusingthecashflowdiscountingapproach.Duringthevaluation,theGroupadoptstheexpectedreturnastheinput.

3.Qualitativeandquantitativeinformationofvaluationtechniquesandkeyparameters

adoptedforitemscontinuouslymeasuredatlevel3fairvalue

ItemFairvalueasat30/06/2025ValuationtechniquesInputs
Investmentsinotherequityinstruments139,451,887.05NetAssetMethodCarryingamount
Othernon-currentfinancialassets28,524,600.31NetAssetMethodCarryingamount

Thefairvalueofnon-listedequityinstrumentsincludedinequityinstrumentsatfairvaluethroughprofitorlossorothercomprehensiveincomeisdeterminedusingthenetassetmethod.

-162-

(XIV)DISCLOSUREOFFAIRVALUE-continued

4.FairvalueoffinancialassetsandfinancialliabilitiesnotmeasuredatfairvalueThefinancialassetsandliabilitiesnotmeasuredatfairvaluemainlyincludebillsreceivable,accountsreceivable,otherreceivables,non-currentassetsduewithinoneyear,long-termreceivables,short-termborrowings,billspayable,accountspayable,otherpayables,non-currentliabilitiesduewithinoneyear,othercurrentliabilities,leaseliabilities,long-termborrowings,bondspayableandlong-termpayablesetc.TheGroup'smanagementbelievesthatthecarryingamountsoffinancialassetsandfinancialliabilitiesatamortizedcostinthefinancialstatementsapproximatetheirfairvalues.

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS

1.ParentoftheCompany

CHINAMERCHANTSPORTGROUPCO.,LTD.NameoftheCompany

NameoftheCompanyRelatedpartyrelationshipTypeoftheentityPlaceofregistrationNatureofbusinessIssuedsharecapitalProportionofownershipinterestsheldbytheCompany(%)ProportionofvotingpowerheldbytheCompany(%)
BroadfordGlobalLimitedParentPrivatelimitedcompany(sharelimited)HongKongInvestmentholdingHKD21,120,986,2622.2162.96(Note)

Note:BroadfordInternationalCo.,Ltd.directlyholds2.21%oftheCompany'sequity,andholds14.83%oftheCompany'sequitythroughits

subsidiaryChinaMerchantsGangtongDevelopment(Shenzhen)Co.,Ltd.Fortheyearended31December2024,thecontrollingshareholderBroadfordInternationalCo.,Ltd.transferredits74.66%sharesofHonghui(HongKong)Co.,Ltd.toCMHK,andCMHKentrustedthe

74.66%sharesofHonghui(HongKong)Co.,Ltd.obtainedfromtheabovetransfertoBroadfordInternationalCo.,Ltd.formanagement.Afterthecompletionofthissharetransferandsharecustody,thecontrollingshareholderofthecompanywillstillbeBroadfordInternationalCo.,Ltd.,TheultimatecontrollingshareholderoftheCompanyisChinaMerchantsGroupCo.,Ltd..

2.SubsidiariesoftheCompanyDetailsofthesubsidiariesoftheCompanyaresetoutinNoteXandNoteXI.1.

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

3.AssociatesandjointventuresoftheCompanyDetailsoftheCompany'ssignificantjointventuresandassociatesaresetoutinNoteXI.3.JointventuresorassociatesthathaverelatedpartytransactionswiththeGroupinthecurrentperiod,orformedbalancesofrelatedpartytransactionswiththeGroupinthepriorperiodareasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofjointventureorassociate

NameofjointventureorassociateRelationshipwiththeCompany
PortofNewcastleanditssubsidiariesJointventure
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.(hereinafterreferredtoas"QingdaoQianwanUnited")anditssubsidiariesJointventure
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.Jointventure
COSCOLogistics(Zhanjiang)Co.,Ltd.Jointventure
ChinaOceanShippingAgencyZhanjiangCo.,Ltd.Jointventure
YantaiPortGroupLaizhouPortCo.,Ltd.Jointventure
QingdaoWutongCenturySupplyChainCo.,Ltd.Jointventure
Euro-AsiaOceangateS.àr.l.Jointventure
GreatHornDevelopmentCompanyFZCoAssociate
InternationalDjiboutiIndustrialParksOperationFZCoAssociate
PortdeDjiboutiS.A.Associate
TerminalLinkSASAssociate
Tin-CanIslandContainerTerminalLtd.Associate
GuizhouQiandongnanContinentalLandPortOperationCo.,Ltd.Associate
NanshanGroupanditssubsidiariesAssociate
ShanggangGroupanditssubsidiariesAssociate
NingboZhoushananditssubsidiariesAssociate
ShenzhenBaohongTechnologyCo.,Ltd.Associate
TianjinHaitianBondedLogisticsCo.,Ltd.Associate
ChuKongRiverTradeTerminalCo.,Ltd.Associate
ShantouInternationalContainerTerminalsLimitedAssociate
ShenzhenChiwanIndustrialDevelopmentCo.,LtdanditssubsidiariesAssociate
CMPortChuangrong(Shenzhen)TechnologyCo.,Ltd.Associate
NewLand-SeaCorridorOperation(Zhanjiang)Co.,Ltd.Associate
AntongHoldingsCo.,Ltd.(hereinafterreferredtoas"AntongHoldings")anditssubsidiariesAssociate
TianjinPortContainerTerminalCo.,Ltd.Associate
LiaoningPortanditssubsidiariesAssociate,controlledbythesameultimatecontrollingshareholder
ZhanjiangSinotransChemicalInternationalLogisticsCo.,Ltd.Associate,controlledbythesameultimatecontrollingshareholder
LacAssalInvestmentHoldingCompanyLimitedAssociate,controlledbythesameultimatecontrollingshareholder
ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd.Minorityinterestsofthesubsidiary
YihaiKerryArawanaHoldingsCo.,Ltd.Minorityinterestsofthesubsidiary

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

4.OtherrelatedpartiesoftheCompany

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofotherrelatedparties

NameofotherrelatedpartiesRelationshipwiththeCompany
ChinaMarineShippingAgencyGuangdongCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
HoiTung(Shanghai)CompanyLimitedControlledbythesameultimatecontrollingshareholder
SouthChinaSinotransSupplyChainManagementCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
EuroAsiaDockyardEnterpriseandDevelopmentLimitedControlledbythesameultimatecontrollingshareholder
QingdaoBondedLogisticsParkSinotransWarehousingLogisticsCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
QingdaoSinotransSupplyChainManagementCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
PenavicoShenzhenWarehousingCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ShenzhenForeignForwardingInternationalFreightCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ShenzhenNanyou(Holdings)Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransShenzhenQianhaiSupplyChainManagementLtd.Controlledbythesameultimatecontrollingshareholder
ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsOceanShippingAgencyShenzhenControlledbythesameultimatecontrollingshareholder
ChinaMerchantsRealEstate(Shenzhen)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsRealEstateCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ShenzhenMerchantstoHomeTechnologyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsShenzhenRo-RoShippingCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMarineShippingAgencyShenzhenCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
YiuLianDockyards(Shekou)LimitedControlledbythesameultimatecontrollingshareholder
YiuLianDockyardsLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsGroupFinanceCompanyLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsInvestmentDevelopmentCompanyLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantFood(China)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsTongshangFinanceLeaseCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsZhangzhouDevelopmentZoneElectricitySupplyLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsSecuritiesCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaTrafficImportandExportCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransChanghangGroupLimitedControlledbythesameultimatecontrollingshareholder
ShenzhenDehanInvestmentDevelopmentCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
GuangdongSinotransShippingCo.,LtdControlledbythesameultimatecontrollingshareholder
ChinaMerchantsHealthcare(Qichun)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaOceanShippingTallyShenzhenCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransCentralChinaCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
Sinotrans(HK)ShippingLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsGroup(HongKong)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

4.OtherrelatedpartiesoftheCompany-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofotherrelatedparties

NameofotherrelatedpartiesRelationshipwiththeCompany
SinowayShippingLtd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsHeavyIndustry(Jiangsu)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransShantouCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchants-LogisticsShenzhenCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaOceanShippingAgencyShenzhenCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMarineShippingAgencyNingboCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransContainerLines(HongKong)CompanyLimitedControlledbythesameultimatecontrollingshareholder
SinotransContainerLinesCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaYangtzeRiverShippingCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
DalianPortGroupCorporationLimitedControlledbythesameultimatecontrollingshareholder
ShenzhenWestPortSecurityServiceCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsApartmentDevelopment(Shenzhen)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
DalianBondedZoneYongdexinRealEstateDevelopment&ConstructionCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsShippingandEnterprisesCompanyLimitedControlledbythesameultimatecontrollingshareholder
NingboTransoceanInternationalForwardingAgencyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
QingdaoSinotransMiningTechnologyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
DandongPortGroupCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
OceanDrillerIIILimitedControlledbythesameultimatecontrollingshareholder
QingdaoSinotransLogisticsCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransContainerTransportationOverseasCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsHaidaInsuranceBrokerageCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransGuangxiCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ZhejiangYoulianShipbuildingRepairCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsXinzhiTechnologyCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsSurplusPropertyManagementCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsJinlingDinghengShip(Yangzhou)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsIndustrialIntelligenceTechnology(Jiangsu)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ChinaMerchantsInnovationandTechnology(Group)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
HongKongHaitongCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
SinotransSouthChinaCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
DalianUnitedKingPortAutoTradeCo.,LtdControlledbythesameultimatecontrollingshareholder
SinotransContainerTransportation(Hainan)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
CIAOInternationalLimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsLogisticsGroup(Tianjin)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
Haitong(Shenzhen)TradeCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
ORIENTUREHOLDINGSCOMPANYLIMITEDControlledbythesameultimatecontrollingshareholder
OceanOffshore2403LimitedControlledbythesameultimatecontrollingshareholder
ChinaMerchantsInnovationandTechnology(HongKong)Co.,Ltd.Controlledbythesameultimatecontrollingshareholder
ShenzhenLongshengIndustrialCo.,Ltd.Controlledbythesameultimatecontrollingshareholder
MerchantsPortCityControlledbythesameultimatecontrollingshareholder

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

4.OtherrelatedpartiesoftheCompany-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.Nameofotherrelatedparties

NameofotherrelatedpartiesRelationshipwiththeCompany
ShenzhenWanhaiBuildingManagementCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder
ChinaMerchantsUnion(BVI)limitedSignificantlyinfluencedbytheultimatecontrollingshareholder
DatongSecuritiesCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder
DalianAutomobileTerminalCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder
DalianPortDesignResearchInstituteCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder
KhorAmbadoFZCoSignificantlyinfluencedbytheultimatecontrollingshareholder
ChinaMerchantsBankCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder
ChinaMerchants(Shenzhen)PowerSupplyCo.,Ltd.Significantlyinfluencedbytheultimatecontrollingshareholder

5.Relatedpartytransactions

(1)Renderingandreceiptofservices

RelatedpartyContentoftransactionPricingmethodanddecisionproceduresofrelatedtransactionsCurrentperiodPriorperiod
Renderingofservices:
COSCOLogistics(Zhanjiang)Co.,Ltd.ServicerevenueNegotiation110,228,256.70129,725,425.39
AntongHoldingsanditssubsidiariesServicerevenueNegotiation89,840,767.0279,402,988.48
ChinaOceanShippingAgencyZhanjiangCo.,Ltd.ServicerevenueNegotiation33,337,936.4139,896,986.31
SinotransContainerTransportation(Hainan)Co.,Ltd.ServicerevenueNegotiation13,650,615.631,124,778.29
SinotransContainerLinesCo.,Ltd.ServicerevenueNegotiation11,537,722.487,788,611.36
ChinaMerchantsOceanShippingAgencyShenzhenServicerevenueNegotiation10,997,593.489,584,350.77
CIAOInternationalLimitedServicerevenueNegotiation10,813,742.62-
ChinaMarineShippingAgencyGuangdongCo.,Ltd.ServicerevenueNegotiation10,306,458.6617,120,465.09
QingdaoQianwanUnitedanditssubsidiariesServicerevenueNegotiation8,463,521.6629,516,987.91
SouthChinaSinotransSupplyChainManagementCo.,Ltd.ServicerevenueNegotiation6,691,248.7840,823.27
YiuLianDockyards(Shekou)LimitedServicerevenueNegotiation5,736,511.055,789,639.47
SinotransShenzhenQianhaiSupplyChainManagementLtd.ServicerevenueNegotiation4,434,880.365,514,141.96
ChinaOceanShippingAgencyShenzhenCo.,Ltd.ServicerevenueNegotiation4,122,229.714,512,358.45
ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited.ServicerevenueNegotiation3,659,918.003,617,926.00
ShenzhenBaohongTechnologyCo.,Ltd.ServicerevenueNegotiation2,536,064.262,788,710.48
LiaoningPortanditssubsidiariesServicerevenueNegotiation2,516,207.842,164,982.97
QingdaoSinotransMiningTechnologyCo.,Ltd.ServicerevenueNegotiation2,488,783.05269,617.93
NewLand-SeaCorridorOperation(Zhanjiang)Co.,Ltd.ServicerevenueNegotiation2,236,211.881,379,772.34
SinowayShippingLtd.ServicerevenueNegotiation2,131,032.522,027,083.04
OtherrelatedpartiesServicerevenueNegotiation14,991,546.2223,204,587.70
PortofNewcastleanditssubsidiariesInterestincomeNegotiation38,788,955.9434,832,183.27
ChinaMerchantsGroupFinanceCompanyLimitedInterestincomeNegotiation30,809,751.9619,216,790.25
ChinaMerchantsBankCo.,Ltd.InterestincomeNegotiation23,563,438.3416,828,019.29
TerminalLinkSASInterestincomeNegotiation5,729,902.576,269,446.51
TianjinHaitianBondedLogisticsCo.,Ltd.InterestincomeNegotiation511,219.19569,824.03

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(1)Renderingandreceiptofservices-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Relatedparty

RelatedpartyContentoftransactionPricingmethodanddecisionproceduresofrelatedtransactionsCurrentperiodPriorperiod
Receiptofservices:
ShenzhenChiwanIndustrialDevelopmentCo.,LtdanditssubsidiariesServiceexpenditureNegotiation29,247,703.2418,364,365.64
ShenzhenNanyou(Holdings)Ltd.ServiceexpenditureNegotiation18,407,462.4617,899,824.44
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.ServiceexpenditureNegotiation6,684,470.009,441,654.65
ShenzhenWestPortSecurityServiceCo.,Ltd.ServiceexpenditureNegotiation6,474,552.855,934,502.97
ChinaMerchantsInvestmentDevelopmentCompanyLimited.ServiceexpenditureNegotiation4,189,133.273,320,897.00
ZhanjiangCOSCOShippingLogisticsCo.,Ltd.ServiceexpenditureNegotiation4,166,843.523,076,054.16
YiuLianDockyardsLimitedServiceexpenditureNegotiation3,591,125.693,546,037.61
DalianUnitedKingPortAutoTradeCo.,Ltd.ServiceexpenditureNegotiation3,478,584.05236,640.63
ChinaMerchants(Shenzhen)PowerSupplyCo.,Ltd.ServiceexpenditureNegotiation2,855,653.245,121,162.21
ChinaMerchants-LogisticsShenzhenCo.,Ltd.ServiceexpenditureNegotiation2,687,110.98362,695.31
InternationalDjiboutiIndustrialParksOperationFZCoServiceexpenditureNegotiation2,636,668.182,006,556.55
ChinaMerchantsZhangzhouDevelopmentZoneElectricitySupplyLimited.ServiceexpenditureNegotiation2,234,982.312,806,920.55
ChinaMerchantsPropertyManagement(Shenzhen)Co.,Ltd.ServiceexpenditureNegotiation2,136,619.532,914,842.28
LiaoningPortanditssubsidiariesServiceexpenditureNegotiation2,131,847.37539,827.07
OtherrelatedpartiesServiceexpenditureNegotiation18,612,453.1517,688,193.59
ChinaMerchantsBankCo.,Ltd.PurchaseofstructureddepositsNegotiation7,400,000,000.002,320,000,000.00
ChinaMerchantsBankCo.,Ltd.InterestexpenseNegotiation31,819,776.0128,544,630.32
ChinaMerchantsGroupFinanceCompanyLimitedInterestexpenseNegotiation17,363,440.7816,832,904.93
OceanOffshore2403LimitedInterestexpenseNegotiation1,777,492.82-
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.InterestexpenseNegotiation1,543,321.181,653,973.16
ChinaMerchantsFinanceLease(Shanghai)Co.,Ltd.InterestexpenseNegotiation-1,707,016.51

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(2)LeaseswithrelatedpartiesTheGroupasthelessor:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthelessee

NameofthelesseeTypeofleasedassetsPricingmethodanddecisionproceduresofrelatedtransactionsLeaseincomerecognizedinthecurrentperiodLeaseincomerecognizedinthepriorperiod
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.PortandterminalfacilitiesNegotiation8,466,125.947,147,337.58
QingdaoBondedLogisticsParkSinotransWarehousingLogisticsCo.,Ltd.PortandterminalfacilitiesNegotiation2,501,982.372,883,944.28
QingdaoSinotransSupplyChainManagementCo.,Ltd.PortandterminalfacilitiesNegotiation2,379,976.012,393,117.24
QingdaoSinotransMiningTechnologyCo.,Ltd.PortandterminalfacilitiesNegotiation2,375,278.562,375,278.56
ChinaTrafficImportandExportCo.,Ltd.BuildingsandstructuresNegotiation1,918,396.562,589,835.38
QingdaoQianwanUnitedanditssubsidiariesBuildingsandstructuresNegotiation1,661,969.041,666,134.78
QingdaoWutongCenturySupplyChainCo.,Ltd.PortandterminalfacilitiesNegotiation1,285,631.821,349,106.93
QingdaoSinotransLogisticsCo.,Ltd.BuildingsandstructuresNegotiation1,238,853.331,238,834.28
Haitong(Shenzhen)TradeCo.,Ltd.BuildingsandstructuresNegotiation1,231,266.301,112,769.54
ChinaMerchantsSecuritiesCo.,Ltd.BuildingsandstructuresNegotiation1,214,641.351,275,298.17
CMPortChuangrong(Shenzhen)TechnologyCo.,Ltd.PortandterminalfacilitiesNegotiation1,203,393.721,288,713.18
YiuLianDockyards(Shekou)LimitedBuildingsandstructuresNegotiation1,082,476.851,064,638.09
OtherrelatedpartiesBuildingsandstructures,PortandterminalfacilitiesNegotiation3,832,692.656,317,985.41
Total————30,392,684.5032,702,993.42

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions–continued

(2)Leaseswithrelatedparties–continuedTheGroupasthelessee:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofthelessor

NameofthelessorTypeofleasedassetsShort-termleaseexpensesorexpensesonleasesoflow-valueassetsthatareaccountedforusingsimplifiedapproachVariableleasepaymentsthatarenotincludedinthemeasurementofleaseliabilitiesRentalpaidInterestexpensesonleaseliabilitiesAdditiontoright-of-useassets
CurrentperiodPriorperiodCurrentperiodPriorperiodCurrentperiodPriorperiodCurrentperiodPriorperiodCurrentperiodPriorperiod
ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.Portandterminalfacilities,Landuseright----16,835,592.5119,893,126.15917,751.661,366,247.62-35,053,682.62
EuroAsiaDockyardEnterpriseandDevelopmentLimitedPortandterminalfacilities----7,585,747.557,504,804.84332,662.65331,040.40--
ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.,Ltd.Portandterminalfacilities,Landuseright7,139,140.973,216,192.69--3,890,831.834,206,780.00----
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.Portandterminalfacilities----1,569,286.1121,519,888.101,543,321.181,704,729.75--
NanshanGroupanditssubsidiariesBuildingsandstructures,Portandterminalfacilities,Others31,258,610.94114,010.98--1,126,992.9633,839,758.2950,922.081,099,787.96294,720.921,018,879.00
OtherrelatedpartiesBuildingsandstructures,Portandterminalfacilities,mechanicalequipment,Landuseright,Others1,071,148.621,002,577.19--2,405,119.4558,986,238.6586,991.761,876,737.11-5,501,535.02
Total39,468,900.534,332,780.86--33,413,570.41145,950,596.032,931,649.336,378,542.84294,720.9241,574,096.64

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(3)RelatedpartyguaranteesTheGroupastheguarantor:

CHINAMERCHANTSPORTGROUPCO.,LTD.Securedparty

SecuredpartyCreditlineGuaranteedamountCommencementdateMaturityTheguaranteehasbeencompletedornot
30/06/2025
TerminalLinkSAS(Note1)58,778,985.0858,778,985.0811June20132033No
KhorAmbadoFZCo(Note3)206,167,680.00166,801,451.7524May20192032No
TerminalLinkSAS(Note2)236,233,800.00115,754,562.0025Jan20232030No
Total501,180,465.08341,334,998.83——————
31/12/2024
TerminalLinkSAS(Note1)58,245,642.5958,245,642.5911June20132033No
KhorAmbadoFZCo(Note3)207,025,920.00167,923,750.9224May20192032No
TerminalLinkSAS(Note2)237,217,200.00116,236,428.0025Jan20232030No
Total502,488,762.59342,405,821.51——————

Note1:Inpreviousyears,CMACGMS.A.,anothershareholderofTerminalLinkSAS,an

associateoftheGroup,provided100%guaranteeforthebankloanfinancingandotherliabilitiesofTerminalLinkSAS.TheGroupmakesacommitmenttoCMACGMS.A.toprovideguaranteeforthebankloanfinancingandotherliabilitiestoTerminalLinkSASinaccordancewiththe49%equityratioofTerminalLinkSASheldbytheGroup.TheactualguaranteedamountisRMB58,778,985.08asat30June2025.Ifanyguaranteeliabilityoccurs,theGroupwillcompensateCMACGMS.A..Note2:TheGroupandCMACGMS.A.provideguaranteeforbankloanfinancingandother

liabilitiesoftheassociatedcompanyTerminalLinkSASaccordingtotheirshareholdingratio.Theactualguaranteeamounton30June2025isRMB115,754,562.00.Note3:KhorAmbadoFZCoisarelatedpartyoftheGroup'sultimatecontrollingshareholder.

TheGroupandothershareholdersofKhorAmbadoFZCoprovideguaranteeforitsbankloansandotherliabilities,theactualamountofwhichasat30June2025isRMB166,801,451.75.

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(4)Borrowingsandloanswithrelatedparties

CHINAMERCHANTSPORTGROUPCO.,LTD.Relatedparty

RelatedpartyAmountCommencementdateMaturitydateDescription
Fortheperiodfrom1Januaryto30June2025
Borrowings
ChinaMerchantsBankCo.,Ltd.711,200,662.22ActualborrowingdateAgreedrepaymentdateShort-termborrowings
ChinaMerchantsBankCo.,Ltd.400,154,273.45ActualborrowingdateAgreedrepaymentdateLong-termborrowings
ChinaMerchantsGroupFinanceCompanyLimited229,054,383.34ActualborrowingdateAgreedrepaymentdateShort-termborrowings
OceanOffshore2403Limited145,113,492.82ActualborrowingdateAgreedrepaymentdateLong-termpayables
ChinaMerchantsGroupFinanceCompanyLimited85,770,617.58ActualborrowingdateAgreedrepaymentdateLong-termborrowings
YihaiKerryArawanaHoldingsCo.,Ltd.36,658,499.40ActualborrowingdateAgreedrepaymentdateLong-termpayables
Total1,607,951,928.81——————
Fortheyearended31December2024
Borrowings
ChinaMerchantsBankCo.,Ltd.1,298,369,781.25ActualborrowingdateAgreedrepaymentdateShort-termborrowings
ChinaMerchantsBankCo.,Ltd.1,336,953,012.50ActualborrowingdateAgreedrepaymentdateLong-termborrowings
ChinaMerchantsGroupFinanceCompanyLimited268,456,381.95ActualborrowingdateAgreedrepaymentdateShort-termborrowings
ChinaMerchantsGroupFinanceCompanyLimited59,158,045.05ActualborrowingdateAgreedrepaymentdateLong-termborrowings
Total2,962,937,220.75——————

Note1:Asat30June2025,thetotalcreditlinesoftheGroupfromtherelatedpartiesChina

MerchantsBankCo.,Ltd.andChinaMerchantsGroupFinanceCompanyLimitedareRMB5,188,300,000.00andRMB10,000,000,000.00respectively.

(5)Assettransferfromrelatedparties

RelatedpartyContentoftransactionPricingmethodanddecisionproceduresofrelatedtransactionsCurrentperiodPriorperiod
ZhanjiangSinotransChemicalInternationalLogisticsCo.,Ltd.ContributionoflanduserightValuation52,122,355.00-
ZhanjiangSinotransChemicalInternationalLogisticsCo.,Ltd.TransferoflanduserightValuation43,972,744.00-
DalianUnitedKingPortAutoTradeCo.,Ltd.AcquisitionofconstructioninprogressNegotiation2,541,946.88-
OceanOffshore2403LimitedAcquisitionofconstructioninprogressNegotiation1,777,492.82-
HongKongHaitongCo.,Ltd.AcquisitionofconstructioninprogressNegotiation1,572,861.85-
DalianUnitedKingPortAutoTradeCo.,Ltd.AcquisitionoffixedassetsNegotiation936,637.17234,513.27
HoiTung(Shanghai)CompanyLimitedAcquisitionoffixedassetsNegotiation-2,876,106.19
OtherrelatedpartiesAcquisitionofconstructioninprogressNegotiation821,594.29871,613.11
Total————103,745,632.013,982,232.57

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

5.Relatedpartytransactions-continued

(6)Compensationforkeymanagementpersonnel

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Compensationforkeymanagementpersonnel11,171,413.158,080,998.82

6.Amountsduefrom/torelatedpartiesthathavenotsettled

(1)Amountsduefromrelatedparties

ItemRelatedparty30/06/202531/12/2024
CashandbankbalancesChinaMerchantsGroupFinanceCompanyLimited2,904,541,481.794,745,991,554.35
ChinaMerchantsBankCo.,Ltd.2,373,210,607.843,404,002,420.98
Total5,277,752,089.638,149,993,975.33
AccountsreceivableCOSCOLogistics(Zhanjiang)Co.,Ltd.47,756,326.7312,222,891.71
AntongHoldingsanditssubsidiaries28,444,004.359,901,450.77
SinotransContainerTransportation(Hainan)Co.,Ltd.6,761,004.982,350,603.78
YiuLianDockyards(Shekou)Limited4,598,782.00355,728.00
SinotransContainerLinesCo.,Ltd.3,060,872.754,496,476.26
ChinaMarineShippingAgencyGuangdongCo.,Ltd.2,504,823.281,641,276.39
LiaoningPortanditssubsidiaries2,413,368.232,358,141.87
QingdaoQianwanUnitedContainerTerminalCo.,Ltd.2,229,255.003,600.00
GreatHornDevelopmentCompanyFZCo2,195,190.842,201,806.92
ChinaOceanShippingAgencyShenzhenCo.,Ltd.2,053,879.203,778,789.25
CIAOInternationalLimited2,039,404.947,428.36
NewLand-SeaCorridorOperation(Zhanjiang)Co.,Ltd.1,814,329.041,328,516.60
Sinotrans(HK)ShippingLimited1,694,473.851,188,868.03
ChinaMerchantsInternationalShippingAgency(Shenzhen)Co.,Ltd.1,684,570.361,860,650.90
YantaiPortGroupLaizhouPortCo.,Ltd.1,650,000.00550,000.00
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.1,610,945.48174,715.79
NanshanGroupanditssubsidiaries1,410,636.16337,492.97
SinowayShippingLtd.1,244,060.18744,465.30
ChinaMerchantsInvestmentDevelopmentCompanyLimited1,079,600.003,439,600.00
ChinaMarineShippingAgencyShenzhenCo.,Ltd.894,676.831,124,282.95
MerchantsPortCity559,541.291,404,084.82
ChinaMerchantsLogisticsGroup(Tianjin)Co.,Ltd.-3,109,502.50
Otherrelatedparties6,585,508.595,077,516.26
Total124,285,254.0859,657,889.43

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

6.Amountsduefrom/torelatedparties-continued

(1)Amountsduefromrelatedparties-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemRelatedparty30/06/202531/12/2024
DividendsreceivableShanghaiPortGroupanditssubsidiaries947,040,362.53326,565,642.25
NanshanGroupanditssubsidiaries185,070,000.00148,056,000.00
LiaoningPortanditssubsidiaries64,862,336.45-
MerchantsPortCity38,809,044.7738,809,044.77
COSCOLogistics(Zhanjiang)Co.,Ltd.5,000,000.005,649,001.16
TianjinPortContainerTerminalCo.,Ltd.4,277,111.77-
Tin-CanIslandContainerTerminalLtd.2,638,420.91-
QingdaoWutongCenturySupplyChainCo.,Ltd.1,190,109.261,190,109.26
ChinaOceanShippingAgencyShenzhenCo.,Ltd.-10,575,000.00
Euro-AsiaOceangateS.àr.l.-23,881,469.17
Total1,248,887,385.69554,726,266.61
OtherreceivablesChuKongRiverTradeTerminalCo.,Ltd.36,847,872.8037,374,974.40
ShenzhenNanyou(Holdings)Ltd.anditssubsidiaries28,784,753.3631,299,652.92
PORTDEDJIBOUTIS.A.25,262,970.00-
OceanOffshore2403Limited7,166,800.00-
ShenzhenQianhaiShekouFreeTradeInvestmentDevelopmentCo.,Ltd.6,310,000.006,310,000.00
ChinaMerchantsInvestmentDevelopmentCompanyLimited4,991,722.733,837,775.52
ZhanjiangSinotransChemicalInternationalLogisticsCo.,Ltd.3,972,744.00-
ChinaMerchantsGroup(HongKong)Co.,Ltd.2,576,322.842,300,860.48
InternationalDjiboutiIndustrialParksOperationFZCo1,549,749.26293,452.73
EuroAsiaDockyardEnterpriseandDevelopmentLimited1,543,323.301,565,400.24
ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd.1,166,408.401,166,408.40
MerchantsPortCity1,015,035.42-
Tin-CanIslandContainerTerminalLtd.761,638.871,056,415.05
CMPortChuangrong(Shenzhen)TechnologyCo.,Ltd.558,758.461,929,055.32
Otherrelatedparties3,928,659.03968,918.60
Total126,436,758.4788,102,913.66
PrepaymentsLiaoningPortanditssubsidiaries1,183,872.6479,471.70
Otherrelatedparties554,033.63226,860.75
Total1,737,906.27306,332.45
Non-currentassetsduewithinoneyearTianjinHaitianBondedLogisticsCo.,Ltd.34,300,000.0034,300,000.00
Otherrelatedparties733,573.82733,025.11
Total35,033,573.8235,033,025.11
Long-termreceivablesPortofNewcastleanditssubsidiaries986,022,060.75920,674,796.27
TerminalLinkSAS234,944,715.04215,013,954.38
Otherrelatedparties909,825.941,058,295.37
Total1,221,876,601.731,136,747,046.02

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

6.Amountsduefrom/torelatedparties-continued

(2)Amountsduetorelatedparties

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemRelatedparty31/06/202531/12/2024
Short-termborrowingsChinaMerchantsBankCo.,Ltd.887,798,030.281,298,369,781.25
ChinaMerchantsGroupFinanceCompanyLimited309,187,299.99180,132,916.65
Total1,196,985,330.271,478,502,697.90
AccountspayableNanshanGroupanditssubsidiaries40,896,946.197,757,550.49
AntongHoldingsanditssubsidiaries17,869,057.6117,869,057.61
ChinaMerchants(Shenzhen)PowerSupplyCo.,Ltd.7,346,780.037,491,614.83
ShenzhenChiwanIndustrialDevelopmentCo.,Ltdanditssubsidiaries4,988,256.055,886,136.82
LiaoningPortanditssubsidiaries2,235,992.695,020,956.61
YiuLianDockyardsLimited1,799,933.221,831,651.56
EuroAsiaDockyardEnterpriseandDevelopmentLimited1,410,405.191,562,589.15
ShenzhenWestPortSecurityServiceCo.,Ltd.1,032,907.00991,318.88
QingdaoQianwanWestPortUnitedWharfCo.,Ltd.933,891.192,302,401.72
ChinaMerchantsXinzhiTechnologyCo.,Ltd.770,000.002,695,000.00
ChinaMerchantsPortInvestmentDevelopmentCo.,Ltd.29,445.291,916,766.44
KhorAmbadoFZCo-14,376,800.00
SinotransSouthChinaCo.,Ltd.-7,731,300.00
Otherrelatedparties4,971,017.152,111,683.58
Total84,284,631.6179,544,827.69
AdvancepaymentsreceivedQingdaoQianwanUnitedanditssubsidiaries1,600,791.49-
Otherrelatedparties1,705,403.651,020,627.96
Total3,306,195.141,020,627.96
ContractliabilitiesAntongHoldingsanditssubsidiaries3,219,488.00400.00
Otherrelatedparties1,356,669.02990,269.32
Total4,576,157.02990,669.32
DividendspayableChinaMerchantsZhangzhouDevelopmentZoneCo.,Ltd.105,526,928.2379,792,513.04
ZhanjiangInfrastructureConstructionInvestmentGroupCo.,Ltd.37,094,597.3552,542,231.24
ChinaMerchantsInnovationandTechnology(HongKong)Co.,Ltd.13,705,787.23-
YiuLianDockyardsLimited10,389,914.81-
ORIENTUREHOLDINGSCOMPANYLIMITED1,741,965.84-
Total168,459,193.46132,334,744.28
OtherpayablesLacAssalInvestmentHoldingCompanyLimited81,522,369.3681,768,095.74
ChinaMerchantsInvestmentDevelopmentCompanyLimited7,896,553.343,559,625.15
AntongHoldingsanditssubsidiaries6,340,341.844,743,266.37
ChinaMerchantsCommercialPropertyInvestment(Shenzhen)Co.,Ltd.4,650,713.652,975,713.65
CIAOInternationalLimited2,999,920.002,999,920.00
TerminalLinkSAS1,944,173.67-
NanshanGroupanditssubsidiaries1,495,646.951,487,524.53
SinotransShenzhenQianhaiSupplyChainManagementLtd.1,220,440.541,744,765.30
ChinaOceanShippingAgencyZhanjiangCo.,Ltd.1,000,000.00700,000.00
LiaoningPortanditssubsidiaries195,191.521,752,579.27
ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.-6,930,409.58
Otherrelatedparties10,233,663.2310,162,873.36
Total119,499,014.10118,824,772.95

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(XV)RELATEDPARTYRELATIONSHIPSANDTRANSACTIONS-continued

6.Amountsduefrom/torelatedparties-continued

(2)Amountsduetorelatedparties-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemRelatedparty31/06/202531/12/2024
Non-currentliabilitiesduewithinoneyearChinaMerchantsGroupFinanceCompanyLimited303,346,606.20153,940,240.06
ChinaMerchantsBankCo.,Ltd.212,584,693.22115,025,994.45
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.48,207,798.3240,241,960.67
ChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.34,284,571.4637,080,955.45
OceanOffshore2403Limited28,667,200.00-
NanshanGroupanditssubsidiaries2,116,520.35-
ShenzhenWanhaiBuildingManagementCo.,Ltd.1,606,884.25-
Otherrelatedparties824,569.51843,949.71
EuroAsiaDockyardEnterpriseandDevelopmentLimited-14,776,413.72
Total631,638,843.31361,909,514.06
Long-termborrowingsChinaMerchantsBankCo.,Ltd.1,521,882,969.111,316,000,000.00
ChinaMerchantsGroupFinanceCompanyLimited524,536,390.38658,012,389.53
Total2,046,419,359.491,974,012,389.53
LeaseliabilitiesChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.15,182,190.8332,067,795.24
ChinaMerchantsInternationalColdChain(Shenzhen)CompanyLimited682,813.711,182,801.92
Total15,865,004.5433,250,597.16
Long-termpayablesOceanOffshore2403Limited116,446,292.82-
YihaiKerryArawanaHoldingsCo.,Ltd.36,658,499.40-
ChinaMerchantsFinanceLease(Tianjin)Co.,Ltd.23,965,052.1231,964,366.45
Total177,069,844.3431,964,366.45
Othernon-currentliabilitiesShenzhenWanhaiBuildingManagementCo.,Ltd.1,211,217.90-
NanshanGroupanditssubsidiaries1,154,702.12-
Total2,365,920.02-

(XVI)SHARE-BASEDPAYMENTS

1.Equityinstruments

TypeoftargetsgrantedGrantedinthecurrentperiodExercisedinthecurrentperiodUnlockedinthecurrentperiodLapsedinthecurrentperiod
Qty.AmountQty.AmountQty.AmountQty.Amount
Management--199,900.00649,675.00----

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(XVI)SHARE-BASEDPAYMENTS-continued

1.Equityinstruments-continuedOutstandingstockoptionorotherequityinstrumentsattheendofcurrentperiod

CHINAMERCHANTSPORTGROUPCO.,LTD.

Typeoftargetsgranted

TypeoftargetsgrantedOutstandingstockoptionattheendofcurrentperiod
RangeofexercisepricesRemainingtermofcontract
ManagementRMB13.25toRMB15.5019months

2.Equity-settledshare-basedpayments

ThemethodusedtodeterminethefairvalueofequityinstrumentsatthegrantdateThecostofgrantedstockoptionswasestimatedusingtheBlackScholesModel.
ThebasisfordeterminingthenumberofexercisableequityinstrumentsAteachbalancesheetdateinthevestingperiod,thebestestimatewasmadeandtheestimatednumberofexercisableequityinstrumentswasmodifiedaccordingtothelatestchangesinthenumberofemployeeswhocanexercisetherightsandothersubsequentinformation.
ReasonsforthesignificantdifferencebetweentheestimatesofthecurrentperiodandtheestimatesofprioryearNothing
Theaggregateamountofequity-settledshare-basedpaymentsthatisincludedincapitalreserve63,655.80

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

st

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

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(XVI)SHARE-BASEDPAYMENTS-continued

2.Equity-settledshare-basedpayments-continuedAccordingtoArticle32ofStockOptionIncentivePlan,sincethegrantdateofthestockoption,iftheCompanydistributesdividendspriortotheexerciseoftheoption,theexercisepriceshallbeadjustedaccordingly.Therefore,theCompanyuniformlyadjustedtheexercisepricefromRMB17.80pershareto17.34pershareinrespectofthefirstbatchofstockoptiongrantedunderthestockoptionincentiveplan(phaseI)on30January2021;theCompanyuniformlyadjustedtheexercisepricefromRMB17.34pershareto16.96pershareinrespectofthefirstbatchofstockoptiongrantedunderthestockoptionincentiveplan(phaseI),andtheexercisepriceofthereservedportionofstockoptionfromRMB15.09pershareto14.71pershareon29January2022;theCompanyuniformlyadjustedtheexercisepricefromRMB16.96pershareto16.53pershareinrespectofthefirstbatchofstockoptiongrantedunderthestockoptionincentiveplan(phaseI),andtheexercisepriceofthereservedportionofstockoptionfromRMB14.71pershareto14.28pershareon20January2023.CompanyuniformlyadjustedtheexercisepricefromRMB16.53pershareto16.08pershareinrespectofthefirstbatchofstockoptiongrantedunderthestockoptionincentiveplan(phaseI),andtheexercisepriceofthereservedportionofstockoptionfromRMB14.28pershareto13.83pershareon16January2024.CompanyuniformlyadjustedtheexercisepricefromRMB16.08pershareto15.50pershareinrespectofthefirstbatchofstockoptiongrantedunderthestockoptionincentiveplan(phaseI),andtheexercisepriceofthereservedportionofstockoptionfromRMB13.83pershareto13.25pershareon31August2024.Asatthedateonwhichthefinancialstatementsareissued,193incentivetargetswhocanexercisetherightsforthethirdvestingperiodofthestockoption(1

stbatch)underthestockoptionincentiveplan(phaseI)included:(1)188incentivetargetswhometthedesignatedgradesintheperformanceassessment,holding100%ofthestockoption(totalling3,422,400shares)forthethirdvestingperiodofthestockoption(1

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

st

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

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(XVI)SHARE-BASEDPAYMENTS-continued

3.Share-basedpaymentexpensesinthecurrentperiod

CHINAMERCHANTSPORTGROUPCO.,LTD.Typeoftargetsgranted

TypeoftargetsgrantedEquity-settledshare-basedpaymentexpenses
Management-

(XVII)COMMITMENTSANDCONTINGENCIES

1.Significantcommitments

Item30/06/202531/12/2024
Commitmentsthathavebeenenteredintobuthavenotbeenrecognizedinthefinancialstatements
-Commitmenttoacquireandconstructlong-termassets2,366,741,451.712,891,660,439.17
-Commitmenttomakecontributionstotheinvestees16,756,625.9168,882,165.47
Total2,383,498,077.622,960,542,604.64

2.Contingencies

Item30/06/202531/12/2024
Contingentliabilitiesbroughtbyexternallitigations(Note1)916,194,745.22804,570,710.82
Guaranteeforborrowingsofrelatedparties(Note2)341,334,998.83342,405,821.51
Total1,257,529,744.051,146,976,532.33

Note1:Thismainlyrepresentsthesignificantcontingentliabilitiesarisingfromthelitigations

betweenTCPanditssubsidiariesandlocaltaxauthority,employeeorformeremployeeofTCPanditssubsidiariesinBrazilatastheperiodend.TheamountinvolvedinthependinglitigationisRMB916,194,745.22.Atthesametime,forthependinglitigationexistingbeforetheGroup'sacquisitionofTCP,thecountercompensationagreementinfavouroftheGroupwillbeexecutedbytheoriginalTCPshareholderswhosellshares.Accordingtothecountercompensationagreement,theoriginalTCPshareholdersneedtocompensatetheGroupforcontingentliabilities,andtheamountofcompensationshouldnotexceedthepredeterminedamountandthespecifiedperiod.AccordingtothelatestestimatesofthemanagementoftheCompany,theabovependinglitigationisunlikelytoleadtotheoutflowofeconomicbenefitsfromtheenterprise.Therefore,theGrouphasnotrecognizedtheestimatedliabilitiesforthecontingentliabilitiescausedbytheabovependinglitigation.

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(XVII)COMMITMENTSANDCONTINGENCIES-continued

2.Contingencies-continuedNote2:Asat30June2025,theguaranteesprovidedbytheGroupforrelatedpartiesaredetailed

inNoteXV.5.Asat30June2025,thedirectorsoftheCompanyevaluatedthedefaultrisksofrelatedcompaniesontheabove-mentionedloanfinancingandotherliabilities,andbelievedthattheriskswerenotsignificantandthepossibilityofguaranteedpaymentswasverylow.Note3:ChinaMerchantsPortHoldings,asubsidiaryoftheCompany,isinvolvedinalegal

lawsuitrelatedtoanoverseasinvestment.BasedontheopinionsoflegaladvisorsandtheinformationavailabletotheCompany,themanagementoftheCompanybelievesthatthepossibilityofaclaimcannotbedeterminedatpresentandthattheabove-mentionedlegallawsuitisunlikelytoresultintheoutflowofeconomicbenefitsfromtheCompany.Therefore,theGrouphasnotrecognizedanyestimatedliabilitiesforthecontingentliabilitiescausedbytheabove-mentionedlegallawsuit.Exceptfortheabove-mentionedcontingencies,Asat30June2025,theGrouphadnoothermajorguaranteesandothercontingenciesthatneedtobeexplained.(XVIII)EVENTSAFTERTHEBALANCESHEET

TheCompanyhadnosignificanteventsafterthebalancesheetdate.(XIX)OTHERSIGNIFICANTEVENTS

1.Segmentreporting

(1)Basisfordeterminingreportingsegmentsandaccountingpolicies

ThekeymanagementteamoftheCompanyisregardedastheCODM,whoreviewstheGroup's

internalreportsinordertoassessperformance,allocateresourcesanddeterminetheoperating

segments.TheCODMconsiderstheoperationoftheGroupintermsofbusinessandlocations.

Individualoperatingsegmentsforwhichdiscretefinancialinformationisavailableareidentified

bytheCODMandareoperatedbytheirrespectivemanagementteams.Theseindividualoperating

segmentsareaggregatedinarrivingatthereportingsegmentsoftheGroup.

Frombusinessandlocationperspectives,themanagementassessestheperformanceofthe

Group'sbusinessoperationsincludingportsoperation,bondedlogisticsoperationandother

operations.

Portsoperation

Portsoperationincludescontainerterminaloperation,bulkandgeneralcargoterminaloperation

operatedbytheGroupanditsassociatesandjointventures.

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(1)Basisfordeterminingreportingsegmentsandaccountingpolicies-continuedPortsoperation-continuedTheGroup'sportsoperationispresentedasfollows:

(a)MainlandChina,HongKongandTaiwan?PearlRiverDelta?YangtzeRiverDelta?BohaiRim?Others(b)OtherlocationsoutsideofMainlandChina,HongKongandTaiwanBondedlogisticsoperationBondedlogisticsoperationincludeslogisticsparkoperation,portstransportationandairportcargohandlingoperatedbytheGroupanditsassociatesandjointventures.OtheroperationsOtheroperationsmainlyincludepropertydevelopmentandinvestmentandlogisticsbusinessoperatedbytheGroup'sassociates,propertyinvestmentoperatedbytheGroupandcorporatefunction.Eachofthesegmentsunderportsoperationincludestheoperationsofanumberofportsinvariouslocationswithinonegeographiclocation.Forthepurposeofsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedintoreportablesegmentsongeographicbasisinordertopresentamoresystematicandstructuredsegmentinformation.Togivedetailsofeachoftheoperatingsegments,intheopinionofthedirectorsoftheCompany,wouldresultinparticularsofexcessivelength.Bondedlogisticsoperationandotheroperationsincludeanumberofdifferentoperations,eachofwhichisconsideredasaseparatebutinsignificantoperatingsegmentbytheCODM.Forsegmentreporting,theseindividualoperatingsegmentshavebeenaggregatedaccordingtothenatureoftheiroperationstogiverisetomoremeaningfulpresentation.Therearenomaterialsalesorothertransactionsbetweenthesegments.TherevenuefromamajorcustomerofportsoperationamountstoRMB1,309,565,463.81,representing15.46%(from1Januaryto30June2024:13.86%).

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(2)FinancialinformationofreportingsegmentsSegmentfinancialinformationfortheperiodfrom1Januaryto30June2025isasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemPortsoperationBondedlogisticsoperationOthersUnallocatedamountTotal
MainlandChina,HongKongandTaiwanOtherlocationsSub-total
PearlRiverDeltaYangtzeRiverDeltaBohaiRimOthers
Operatingincome3,519,011,226.80137,755.2113,986,156.151,504,339,421.373,040,042,023.228,077,516,582.75305,195,700.0485,779,093.29-8,468,491,376.08
Operatingcosts1,776,103,190.684,251,608.206,844,764.091,278,654,685.091,246,331,683.034,312,185,931.09175,659,536.14108,418,625.27-4,596,264,092.50
Segmentoperatingprofit(“-”forlosses)1,742,908,036.12-4,113,852.997,141,392.06225,684,736.281,793,710,340.193,765,330,651.66129,536,163.90-22,639,531.98-3,872,227,283.58

Taxesandsurcharges

Taxesandsurcharges17,442,155.96540,767.29802,751.3824,536,380.63107,439,669.29150,761,724.5513,201,806.8612,127,437.32124,187.76176,215,156.49
Administrativeexpense188,686,909.492,049,151.104,386,966.47179,692,735.64162,792,311.25537,608,073.9521,269,978.32557,559.24199,637,497.93759,073,109.44
R&Dexpenses87,599,302.90--9,601,570.86-97,200,873.76--9,930,272.79107,131,146.55
Financialexpenses11,765,190.14-6,792,779.77-302,546.1729,787,830.3631,834,271.5566,291,966.1119,346,593.181,387,004.79749,546,422.50836,571,986.58
Otherincome109,044,715.55612,956.5027,504.0314,871,263.19-124,556,439.27471,126.18134,990.58-125,162,556.03
Investmentincome(“-”forlosses)44,936,641.432,852,058,858.18144,794,869.0125,160,853.01420,512,592.253,487,463,813.8886,442,141.0671,470,297.697,459,080.743,652,835,333.37
Including:Investmentincomefromassociatesandjointventures14,317,096.322,852,058,858.18144,794,869.0116,910,357.54420,512,592.253,448,593,773.3086,442,141.0671,470,297.69-3,606,506,212.05
Gainsfromchangesinfairvalue(“-”forlosses)20,435,994.54----20,435,994.54--599,452.0621,035,446.60
Reversalof/(Losseson)creditimpairment-1,082,814.66---267,318.346,043,934.774,693,801.77---4,693,801.77
Impairmentlosses(“-”forlosses)1,621.20----1,621.20---1,621.20
Gainsfromassetdisposals(“-”forlosses)155,798.25--6,123,427.04436,493.976,715,719.26-26,864.57--6,688,854.69
Operatingprofit(“-”forlosses)1,610,906,433.942,852,760,823.07147,076,593.4227,954,443.691,918,637,109.096,557,335,403.21162,604,188.2134,893,754.94-951,179,848.185,803,653,498.18

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(2)Financialinformationofreportingsegments-continuedSegmentfinancialinformationfortheperiodfrom1Januaryto30June2025isasfollows:-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemPortsoperationBondedlogisticsoperationOthersUnallocatedamountTotal
MainlandChina,HongKongandTaiwanOtherlocationsSub-total
PearlRiverDeltaYangtzeRiverDeltaBohaiRimOthers
Non-operatingincome3,105,946.98--3,363,354.496,420,131.9712,889,433.44795,708.4655,846.133,831,005.9617,571,993.99
Non-operatingexpenses669,964.79--2,162,237.609,920,328.3012,752,530.6936,000.00324.74444.4012,789,299.83
Totalprofit(“-”forlosses)1,613,342,416.132,852,760,823.07147,076,593.4229,155,560.581,915,136,912.766,557,472,305.96163,363,896.6734,949,276.33-947,349,286.625,808,436,192.34
Incometaxexpenses312,664,239.11100,224,893.1214,055,305.663,610,305.52270,138,271.25700,693,014.6614,845,642.5512,223,552.71646,599.40728,408,809.32
Netprofit(“-”forlosses)1,300,678,177.022,752,535,929.95133,021,287.7625,545,255.061,644,998,641.515,856,779,291.30148,518,254.1222,725,723.62-947,995,886.025,080,027,383.02
Segmentassets27,457,115,682.0163,388,170,894.229,227,896,192.7026,401,352,335.5243,415,116,836.52169,889,651,940.974,460,588,751.2817,462,132,059.6811,331,680,409.22203,144,053,161.15
Totalassetsinthefinancialstatements203,144,053,161.15
Segmentliabilities7,821,323,407.221,505,698,679.47154,366,674.607,111,488,954.536,687,551,490.4123,280,429,206.23503,670,780.37406,188,893.2348,366,091,767.0972,556,380,646.92
Totalliabilitiesinthefinancialstatements72,556,380,646.92
Supplementaryinformation:
Depreciationandamortization545,355,993.293,058,262.56479,621.58445,311,243.17497,330,751.341,491,535,871.9447,469,967.9266,549,567.1018,165,325.831,623,720,732.79
Interestincome21,198,875.55108,734.73101,094.805,545,923.0282,917,894.26109,872,522.36377,103.06739,935.2389,799,133.17200,788,693.82
Interestexpense34,185,481.963,609,959.66-35,164,581.41176,627,472.00249,587,495.0317,770,104.894,068,318.83744,377,039.671,015,802,958.42
Investmentincomefromlong-termequityinvestmentsunderequitymethod14,317,096.322,852,058,858.18144,794,869.0116,910,357.54420,512,592.253,448,593,773.3086,442,141.0671,470,297.69-3,606,506,212.05
Long-termequityinvestmentsunderequitymethod1,776,764,425.4760,549,776,968.189,103,163,477.771,690,650,980.2112,887,806,822.9186,008,162,674.541,847,134,007.4413,920,076,699.98-101,775,373,381.96
Non-currentassetsotherthanlong-termequityinvestments19,398,049,772.13389,968,844.8113,853,058.2219,579,109,524.2426,280,047,117.9265,661,028,317.322,347,236,475.393,263,212,028.52911,225,359.3572,182,702,180.58

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(2)Financialinformationofreportingsegments-continuedSegmentfinancialinformationfortheperiodfrom1Januaryto30June2024isasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemPortsoperationBondedlogisticsoperationOthersUnallocatedamountTotal
MainlandChina,HongKongandTaiwanOtherlocationsSub-total
PearlRiverDeltaYangtzeRiverDeltaBohaiRimOthers
Operatingincome3,219,936,922.801,029,435.6039,308,697.491,714,301,249.692,644,011,210.957,618,587,516.53265,131,369.9691,474,197.15-7,975,193,083.64
Operatingcosts1,685,168,257.935,842,912.7033,142,932.271,253,584,489.471,157,898,462.564,135,637,054.93142,996,868.88112,235,371.15-4,390,869,294.96
Segmentoperatingprofit(“-”forlosses)1,534,768,664.87-4,813,477.106,165,765.22460,716,760.221,486,112,748.393,482,950,461.60122,134,501.08-20,761,174.00-3,584,323,788.68

Taxesandsurcharges

Taxesandsurcharges17,244,195.32535,050.52821,769.6325,037,360.2494,328,417.32137,966,793.0313,249,160.2212,119,726.59247,808.92163,583,488.76
Administrativeexpense196,933,278.401,612,493.404,359,371.33248,105,996.41126,398,428.69577,409,568.2333,030,856.52549,225.95197,189,105.48808,178,756.18
R&Dexpenses75,295,632.42--9,437,328.88-84,732,961.30---84,732,961.30
Financialexpenses26,926,418.033,725,670.57-94,890.3138,170,354.37134,100,453.57202,828,006.23-3,209,663.687,731,837.05788,862,594.21996,212,773.81
Otherincome82,479,124.76612,942.5526,641.9414,188,876.02-97,307,585.2710,880,170.75208,451.85-108,396,207.87
Investmentincome(“-”forlosses)43,658,873.092,875,237,848.06202,338,251.969,197,560.90298,146,789.223,428,579,323.2320,421,144.80-27,371,992.9616,221,423.393,437,849,898.46
Including:Investmentincomefromassociatesandjointventures27,015,306.722,875,237,848.06157,499,358.356,796,818.08298,146,789.233,364,696,120.4420,421,144.80-27,371,992.96-3,357,745,272.28
Gainsfromchangesinfairvalue(“-”forlosses)20,980,499.73-443,376,957.50101,333.89-464,458,791.12-206,159.781,187,945.21465,852,896.11
Reversalof/(Losseson)creditimpairment-214,532.10---1,286,581.85316,819,722.85315,318,608.90407,893.03--315,726,501.93
Impairmentlosses(“-”forlosses)----------
Gainsfromassetdisposals(“-”forlosses)1,147,053.63-4,304.65-110,309.93-2,124.0211,603.211,041,918.24-155,995.83--1,454.23884,468.18
Operatingprofit(“-”forlosses)1,366,420,159.812,865,159,794.37646,711,056.04162,164,785.261,746,263,564.096,786,719,359.57110,617,360.77-68,119,344.92-968,891,594.245,860,325,781.18

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

(2)Financialinformationofreportingsegments-continuedSegmentfinancialinformationfortheperiodfrom1Januaryto30June2024isasfollows:-continued

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemPortsoperationBondedlogisticsoperationOthersUnallocatedamountTotal
MainlandChina,HongKongandTaiwanOtherlocationsSub-total
PearlRiverDeltaYangtzeRiverDeltaBohaiRimOthers
Non-operatingincome8,082,316.61--4,261,287.731,978,420.6814,322,025.0242,240.8349,439.703,124,729.1817,538,434.73
Non-operatingexpenses1,279,860.60--1,371,370.3130,938,243.7833,589,474.6918,742.918,251.6383,158.8633,699,628.09
Totalprofit(“-”forlosses)1,373,222,615.822,865,159,794.37646,711,056.04165,054,702.681,717,303,740.996,767,451,909.90110,640,858.69-68,078,156.85-965,850,023.925,844,164,587.82
Incometaxexpenses292,334,020.67102,522,933.56115,122,672.4139,662,238.21233,122,011.23782,763,876.0816,402,878.587,906,087.89-2,553,964.04804,518,878.51
Netprofit(“-”forlosses)1,080,888,595.152,762,636,860.81531,588,383.63125,392,464.471,484,181,729.765,984,688,033.8294,237,980.11-75,984,244.74-963,296,059.885,039,645,709.31
Segmentassets25,159,648,144.6159,053,667,162.3010,290,478,652.5427,605,130,841.7943,895,539,823.77166,004,464,625.014,385,458,318.0619,461,526,772.4810,893,681,899.76200,745,131,615.31
Totalassetsinthefinancialstatements200,745,131,615.31
Segmentliabilities8,054,756,474.591,342,738,444.87168,738,974.836,396,356,667.728,043,590,852.5824,006,181,414.59548,164,250.29582,804,155.8948,634,223,695.3373,771,373,516.10
Totalliabilitiesinthefinancialstatements73,771,373,516.10
Supplementaryinformation:
Depreciationandamortization649,214,097.154,429,200.35441,032.34426,072,123.12445,805,837.981,525,962,290.9452,670,505.1912,591,960.0212,078,684.431,603,303,440.58
Interestincome16,953,957.00285,724.46304,556.648,849,103.1397,732,626.85124,125,968.082,947,476.59478,816.47112,605,281.64240,157,542.78
Interestexpense44,968,925.364,005,717.95-46,286,600.74158,527,211.05253,788,455.104,228,352.926,619,216.67883,829,107.751,148,465,132.44
Investmentincomefromlong-termequityinvestmentsunderequitymethod27,015,306.722,875,237,848.06157,499,358.356,796,818.08298,146,789.233,364,696,120.4420,421,144.80-27,371,992.96-3,357,745,272.28
Long-termequityinvestmentsunderequitymethod1,778,239,596.8857,238,687,511.418,854,531,448.951,714,256,379.5512,321,801,119.5281,907,516,056.311,712,129,148.1014,359,020,060.75-97,978,665,265.16
Non-currentassetsotherthanlong-termequityinvestments18,020,380,466.47394,157,415.1214,385,806.3519,882,238,102.8025,993,279,320.5964,304,441,111.332,367,078,133.194,707,807,383.481,182,623,518.6072,561,950,146.60

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(XIX)OTHERSIGNIFICANTEVENTS-continued

1.Segmentreporting-continued

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

CHINAMERCHANTSPORTGROUPCO.,LTD.Revenuefromexternaltransactions

RevenuefromexternaltransactionsCurrentperiodPriorperiod
MainlandChina,HongKongandTaiwan5,393,865,378.885,310,331,280.78
PearlRiverDelta3,798,128,505.773,479,997,279.58
YangtzeRiverDelta137,755.211,029,435.60
BohaiRim91,259,696.53115,003,315.91
Others1,504,339,421.371,714,301,249.69
Otherlocations3,074,625,997.202,664,861,802.86
Total8,468,491,376.087,975,193,083.64

Totalnon-currentassets

Totalnon-currentassets30/06/202531/12/2024
MainlandChina,HongKongandTaiwan132,589,177,184.03131,164,149,562.93
PearlRiverDelta39,736,284,190.1938,760,830,551.24
YangtzeRiverDelta60,939,670,150.3559,856,917,512.96
BohaiRim9,596,169,528.819,537,186,598.85
Others22,317,053,314.6823,009,214,899.88
Otherlocations41,368,898,378.5140,481,468,321.83
Total173,958,075,562.54171,645,617,884.76

(3)DegreeofrelianceonmajorcustomersThetotaloperatingincomederivedfromthetopfivecustomersoftheGroupisRMB2,681,539,552.17,accountingfor31.66%oftheGroup'soperatingincome.(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

1.Otherreceivables

1.1Summaryofotherreceivables

Item30/06/202531/12/2024
Dividendsreceivable633,862,578.90965,690,879.89
Otherreceivables1,439,944,191.901,447,751,781.79
Total2,073,806,770.802,413,442,661.68

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

1.Otherreceivables-continued

1.2Dividendsreceivable

(1)Dividendsreceivablelistedbyaging

CHINAMERCHANTSPORTGROUPCO.,LTD.

Investee

Investee30/06/202531/12/2024ReasonforoutstandingImpairedornotandthedeterminationbasis
Dividendreceivableagedlessthan1year485,756,018.86816,439,596.16————
Including:PortDevelopment(HongKong)Co.,Ltd.456,490,000.00805,654,800.00——No
ShenzhenChiwanHarborContainerCo.Ltd.20,000,000.00-——No
CMPort9,163,078.84-——No
CMInternationalTech102,940.02-——No
ChiwanShipping(HongKong)Limited-209,796.16——No
ChinaOceanShippingAgencyShenzhenCo.,Ltd.-10,575,000.00——No
Dividendreceivableagedmorethan1year148,106,560.04149,251,283.73————
Including:WharfHoldingsHongKong147,680,363.88147,680,363.88RelevantproceduresarebeinghandledandpastdividendsarebeingpaidinsuccessionNo
ChiwanShipping(HongKong)Limited209,796.161,354,519.85RelevantproceduresarebeinghandledandpastdividendsarebeingpaidinsuccessionNo
Others216,400.00216,400.00LackoffundsNo
Sub-total633,862,578.90965,690,879.89————
Less:Provisionforbaddebts--————
Total633,862,578.90965,690,879.89————

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

1.Otherreceivables-continued

1.3Otherreceivables

(1)Aginganalysisofotherreceivables

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

Item30/06/202531/12/2024
BookvalueProportion(%)ProvisionforbaddebtsBookvalueProportion(%)Provisionforbaddebts
Within1year(including1year)1,439,597,708.9399.95-1,447,405,298.8299.95-
1to2years(including2years)18,167.50--18,167.50--
2to3years(including3years)------
Morethan3years711,772.070.05383,456.60711,772.070.05383,456.60
Total1,440,327,648.50100.00383,456.601,448,135,238.39100.00383,456.60

(2)Disclosureofotherreceivablesbynature

Item30/06/202531/12/2024
Amountsduefromrelatedparties1,422,029,387.331,438,029,807.71
Advancepayments7,002,187.245,779,708.72
Others11,296,073.934,325,721.96
Sub-total1,440,327,648.501,448,135,238.39
Less:Provisionforbaddebts383,456.60383,456.60
Total1,439,944,191.901,447,751,781.79

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued

1.Otherreceivables-continued

1.3Otherreceivables-continued

(3)Provisionforbaddebtsofotherreceivables

CHINAMERCHANTSPORTGROUPCO.,LTD.Creditrating

CreditratingExpectedcreditlossrate(%)BookvalueProvisionforbaddebtsCarryingamountReasonforprovision
AgingAging
Within1year1-2years2-3yearsMorethan3yearsTotalWithin1year1-2years2-3yearsMorethan3yearsTotal
A0.00-0.101,439,597,708.9318,167.50-328,315.471,439,944,191.90-----1,439,944,191.90——
B0.10-0.30-----------——
C0.30-50.00-----------——
D50.00-100.00---383,456.60383,456.60---383,456.60383,456.60-Notexpectedtoberecovered
Total1,439,597,708.9318,167.50-711,772.071,440,327,648.50---383,456.60383,456.601,439,944,191.90

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

1.Otherreceivables-continued

1.3Otherreceivables-continued

(4)Provision,recoveryandreversalofcreditimpairmentofotherreceivables

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemStage1Stage2Stage3Total
12-monthECLLifetimeECL(notcredit-impaired)LifetimeECL(credit-impaired)
Asat1January2025--383,456.60383,456.60
Balanceofotherreceivablesasat1January2025
-TransfertoStage2---
-TransfertoStage3----
-ReversetoStage2----
-ReversetoStage1----
Provisionfortheperiod----
Reversalfortheperiod----
Transferoutduetoderecognitionoffinancialassets(includingdirectwrite-down)----
Otherchanges----
Asat30June2025--383,456.60383,456.60

(5)Detailsofbaddebtprovision

Category01/01/2025Changesfortheperiod30/06/2025
ProvisionRecoveryorreversalEffectofchangesinthescopeofconsolidationCharge-offorwrite-offOtherchanges
Provisionforbaddebtsassessedonanindividualbasis383,456.60-----383,456.60
Provisionforbaddebtsassessedonaportfoliobasis-------
Total383,456.60-----383,456.60

(6)TheCompanyhasnorecoveryorreversalofsignificantprovisionforbaddebtsinthe

currentperiod.

-191-

(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

1.Otherreceivables-continued

1.3Otherreceivables-continued

(7)TheCompanyhasnootherreceivableswrittenoffduringtheperiod.

(8)Thetopfivebalancesofotherreceivablesattheendoftheperiodclassifiedbydebtor

CHINAMERCHANTSPORTGROUPCO.,LTD.

Nameofentity

NameofentityRelationshipwiththeCompanyNatureCarryingamountAgingProportiontototalotherreceivables(%)Provisionforbaddebtsattheendoftheperiod
WharfHoldingsHongKongSubsidiaryLoantorelatedparties1,422,029,387.33Within1year98.73-
ShenzhenChiwanPortDevelopmentCo.,Ltd.SubsidiaryOthers8,353,903.44Within1year0.58-
ChinaMerchantsInvestmentDevelopmentCompanyLimitedRelatedPartyAdvancepayments4,991,722.73Within1year0.35-
StateAdministrationofTaxationShenzhenQianhaiShenzhenHongKongModernServiceIndustryCooperationZoneTaxationBureauThirdpartyOthers711,772.07Morethan3years0.05383,456.60
ChinaSecuritiesDepositoryandClearingCorporationLimitedShenzhenBranchThirdpartyOthers619,960.00Within1year0.04-
Total————1,436,706,745.57——99.75383,456.60

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(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS-continued

2.Long-termequityinvestments

(1)Breakdownoflong-termequityinvestments

CHINAMERCHANTSPORTGROUPCO.,LTD.

Investee

Investee01/01/2025Changesfortheperiod30/06/2025Provisionforimpairmentattheendoftheperiod
IncreaseDecreaseInvestmentincomeunderequitymethodOthercomprehensiveincomeOtherequitymovementsCashdividendsorprofitdeclaredProvisionforimpairmentOthers
I.Subsidiaries
PortsDevelopment(HongKong)Limited29,203,045,326.23--------29,203,045,326.23-
ZhanjiangPort3,381,825,528.52--------3,381,825,528.52-
ChiwanContainerTerminalCo.,Ltd.421,023,199.85--------421,023,199.85-
ShenzhenChiwanHarborContainerCo.Ltd.250,920,000.00--------250,920,000.00-
ShunkongPort(Note1)240,013,200.00--------240,013,200.00-
ShenzhenChiwanPortDevelopmentCo.,Ltd.206,283,811.09--------206,283,811.09-
DongguanShenchiwanPortAffairsCo.,Ltd.186,525,000.00--------186,525,000.00-
CMPort181,479,422.23--------181,479,422.23-
DongguanShenchiwanWharfCo.,Ltd.175,000,000.00--------175,000,000.00-
YidePort131,866,700.00--------131,866,700.00-
CMInternationalTech130,462,575.02--------130,462,575.02-
ZhoushanRoRo106,104,786.00--------106,104,786.0043,605,014.00
ShenzhenChiwanTugboatCo.,Ltd.24,000,000.00--------24,000,000.00-
ShenzhenChiwanInternationalFreightAgencyCo.,Ltd.5,500,000.00--------5,500,000.00-
SanyaMerchantsPortDevelopmentCo.,Ltd.2,040,000.00--------2,040,000.00-
WharfHoldingsHongKong1,070,000.00--------1,070,000.00-
ChiwanShipping(HongKong)Limited1,051,789.43--------1,051,789.43-
Sub-total34,648,211,338.37--------34,648,211,338.3743,605,014.00
II.Associates
NingboZhoushan17,532,047,355.93--544,904,895.88-9,233,634.9353,477,156.48-440,841,433.07--17,680,354,340.29-
ChinaMerchantsNortheastAsiaDevelopment&InvestmentCo.,Ltd.1,021,905,232.79--1,060,844.26-----1,022,966,077.05-
AntongHoldings963,996,902.74--36,492,704.25-----1,000,489,606.99-
ChinaMerchantsBondedLogisticsCo.,Ltd.393,184,304.83--15,896,000.00---52,642,901.24--356,437,403.59-
Sub-total19,911,133,796.29--598,354,444.39-9,233,634.9353,477,156.48-493,484,334.31--20,060,247,427.92-
III.Jointventures
YantaiPortGroupLaizhouPortCo.,Ltd.803,852,105.71--15,193.39-----803,867,299.10-
FujianZhaohangLogisticsManagementPartnership(LimitedPartnership)637,858,949.05--20,282,666.67-----658,141,615.72-
ShenzhenGangtengInternetTechnologyCo.,Ltd.8,225,982.88---1,676,558.82-----6,549,424.06-
Sub-total1,449,937,037.64--18,621,301.24-----1,468,558,338.88-
Total56,009,282,172.30--616,975,745.63-9,233,634.9353,477,156.48-493,484,334.31--56,177,017,105.1743,605,014.00

SUPPLEMENTARYINFORMATIONFORTHEPERIODFROM1JANUARYTO30JUNE2025(Unlessotherwisespecified,themonetaryunitshallbeRMB)

-201-

(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

3.Operatingincomeandoperatingcosts

CHINAMERCHANTSPORTGROUPCO.,LTD.

Item

ItemCurrentperiodPriorperiod
IncomeCostIncomeCost
Principaloperation----
Otheroperations10,468,785.481,869,721.928,997,504.491,869,721.92
Total10,468,785.481,869,721.928,997,504.491,869,721.92

SUPPLEMENTARYINFORMATIONFORTHEPERIODFROM1JANUARYTO30JUNE2025(Unlessotherwisespecified,themonetaryunitshallbeRMB)

-202-

(XX)NOTESTOTHEKEYITEMSINTHECOMPANY'SFINANCIALSTATEMENTS

-continued

4.Investmentincome

(1)Detailsofinvestmentincome

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemCurrentperiodPriorperiod
Incomefromlong-termequityinvestmentsundercostmethod766,106,108.72450,574,980.92
Incomefromlong-termequityinvestmentsunderequitymethod616,975,745.63509,529,672.39
Disposalincomefromfinancialassetsheldfortrading24,885,123.4116,033,315.06
Total1,407,966,977.76976,137,968.37

(2)Incomefromlong-termequityinvestmentsundercostmethod

InvesteeCurrentperiodPriorperiodReasonforchanges
WharfHoldingsHongKong230,000,000.00-Changesinprofitdistributionofinvestee
ChiwanContainerTerminalCo.,Ltd.211,732,266.55124,392,799.44Changesinprofitdistributionofinvestee
ShenzhenChiwanHarborContainerCo.Ltd.177,558,005.36143,167,589.81Changesinprofitdistributionofinvestee
DongguanShenchiwanWharfCo.,Ltd.43,578,585.8642,509,038.50Changesinprofitdistributionofinvestee
ShenzhenChiwanTugboatCo.,Ltd.38,497,207.4228,061,835.33Changesinprofitdistributionofinvestee
ZhanjiangPort34,498,416.9483,925,753.46Changesinprofitdistributionofinvestee
DongguanShenchiwanPortAffairsCo.,Ltd.12,928,614.7313,703,850.69Changesinprofitdistributionofinvestee
CMPort9,267,859.396,875,839.88Changesinprofitdistributionofinvestee
ShenzhenChiwanPortDevelopmentCo.,Ltd.4,824,079.973,409,806.03Changesinprofitdistributionofinvestee
ShenzhenChiwanInternationalFreightAgencyCo.,Ltd.2,133,637.28957,771.62Changesinprofitdistributionofinvestee
SanyaMerchantsPortDevelopmentCo.,Ltd.984,495.203,360,900.00Changesinprofitdistributionofinvestee
CMInternationalTech102,940.02-Changesinprofitdistributionofinvestee
ChiwanShipping(HongKong)Limited-209,796.16Changesinprofitdistributionofinvestee
Total766,106,108.72450,574,980.92

1.RETURNONNETASSETSANDEARNINGSPERSHARE("EPS")InaccordancewiththeChinaSecuritiesRegulatoryCommission'sCompilationRulesforInformationDisclosureandPresentationRulesforCompaniesMakingPublicOfferingNo.9--CalculationandDisclosureofReturnonNetAssetsandEarningsperShare(revisedin2010),theweightedaveragereturnonnetassets,basicearningspershareanddilutedearningspershareoftheGroupfortheperiodended30June2025areasfollows:

ProfitinreportingperiodWeightedaveragereturnonnetassets(%)EPS
BasicEPSDilutedEPS
Netprofitattributabletoordinaryshareholders4.1932%1.05421.0541
Netprofitattributabletoordinaryshareholdersafterdeductingnon-recurringprofitorloss4.0208%1.01091.0107

SUPPLEMENTARYINFORMATIONFORTHEPERIODFROM1JANUARYTO30JUNE2025(Unlessotherwisespecified,themonetaryunitshallbeRMB)

2.BREAKDOWNOFNON-RECURRINGPROFITORLOSSInaccordancewiththeprovisionsofChinaSecuritiesRegulatoryCommission'sExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesMakingPublicOffering--Non-recurringProfitorLoss(Revisedin2023),theGroup'snon-recurringprofitandlossfortheperiodended30June2025isasfollows:

CHINAMERCHANTSPORTGROUPCO.,LTD.Item

ItemAmountRemark
Gainsorlossesondisposalofnon-currentassets,includingthosechargedoffforwhichprovisionforimpairmentofassetshasbeenmade8,718,802.44
Governmentgrantsrecognizedinprofitorloss(otherthangrantswhicharecloselyrelatedtotheCompany'sbusiness,inlinewiththenationalregulations,enjoyedunderestablishedstandardsandhaveacontinuousimpactontheCompany'sprofitorloss)98,482,810.89
Incomeearnedfromlendingfundstonon-financialinstitutionsandrecognizedinprofitorloss45,030,077.70
Theexcessofattributablefairvalueofidentifiablenetassetsovertheconsiderationpaidforsubsidiaries,associatesandjointventures-
Gainsorlossesonexchangeofnon-monetaryassets-
Gainsorlossesonentrustedinvestmentsorassetmanagement-
Lossesonassetsduetoforcemajeure,e.g.,naturaldisasters-
Gainsorlossesondebtrestructuring-
Lump-sumcostsincurredbytheenterprisesasaresultofthediscontinuationofrelevantbusinessactivities,e.g.,expenditureforlayoffofemployees,etc.-
Gainsfromtransactionswithunfairtransactionprice-
Netprofitorlossofsubsidiariesrecognizedasaresultofbusinesscombinationofenterprisesundercommoncontrolfromthebeginningoftheyearuptothebusinesscombinationdate-
Gainsorlossesarisingfromcontingenciesotherthanthoserelatedtonormaloperatingbusiness-
Gainsorlossesfromchangesinfairvalueoffinancialassetsandfinancialliabilitiesheldbynon-financialenterprisesotherthaneffectivehedgingoperationrelatingtotheCompany'snormaloperations,andgainsorlossesfromdisposaloffinancialassetsandfinancialliabilities63,388,029.42
Reversalofprovisionforaccountsreceivablethataretestedforimpairmentindividually6,556,669.83
Gainsorlossesonentrustedloans-
Gainsorlossesfromchangesinfairvalueofinvestmentpropertiesthataresubsequentlymeasuredusingthefairvaluemodel-
One-timeeffectofadjustmentsintaxlawsandaccountinglawsandregulationsonprofitorlossfortheperiod-
Custodianfeesearnedfromentrustedoperation-
Share-basedpaymentexpensesrecognizedonceduetothecancellationormodificationofequityincentiveplans-
Forcash-settledshare-basedpayments,gainsorlossesarisingfromchangesinfairvalueofemployeebenefitspayableafterthevestingdate-
Othernon-operatingincomeorexpensesotherthanabove6,609,284.91
Otherprofitorlossthatmeetsthedefinitionofnon-recurringprofitorloss-
Sub-total228,785,675.19
Taxeffects-25,102,147.29
Effectsofnon-controllinginterests(aftertax)-95,731,364.63
Total107,952,163.27

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