CHINA MERCHANTS PORT GROUP CO., LTD.
FINANCIAL STATEMENTS
FOR THE YEAR FROM 1 JANUARY TO 31 DECEMBER 2025
CHINA MERCHANTS PORT GROUP CO., LTD.
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2025
CONTENTS PAGE(S)
AUDITOR'S REPORT
CONSOLIDATED BALANCE SHEET 1- 3
BALANCE SHEET OF THE COMPANY 4-6
CONSOLIDATED INCOME STATEMENT 7-8
INCOME STATEMENT OF THE COMPANY 9
CONSOLIDATED CASH FLOW STATEMENT 10
CASH FLOW STATEMENT OF THE COMPANY 11
CONSOLIDATED STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 12 - 13
THE COMPANY'S STATEMENT OF CHANGES IN
SHAREHOLDERS' EQUITY 14 - 15
NOTES TO THE FINANCIAL STATEMENTS 16 - 200
AUDITOR'S REPORT
毕马威华振审字第 2607559 号
To all the shareholders of China Merchants Port Group Co., Ltd.,
I. Audit Opinion
We have audited the accompanying financial statements of China Merchants Port Group Co., Ltd.
("China Merchants Port Group"), which comprise the consolidated and company balance sheets as at 31
December 2025, the consolidated and company income statements, the consolidated and company cash
flow statements, the consolidated and company statements of changes in shareholders' equity for the
year then ended, and notes to the financial statements.
In our opinion, the accompanying financial statements present fairly, in all material respects, the
consolidated and company financial position of China Merchants Port Group as at 31 December 2025,
and the consolidated and company financial performance and cash flows of China Merchants Port Group
for the year then ended in accordance with Accounting Standards for Business Enterprises issued by the
Ministry of Finance of the People’s Republic of China.
II. Basis for the Opinion
We conducted our audit in accordance with China Standards on Auditing for Certified Public
Accountants (“CSAs”). Our responsibilities under those standards are further described in the Auditor's
Responsibilities for the Audit of the Financial Statements section of our report. We are independent of
China Merchants Port Group in accordance with the Independence Standards for Chinese Certified
Public Accountants No. 1 – Independence Requirements for Audit and Review Engagements, as
applicable to audits of financial statements of public interest entities and the China Code of Ethics for
Certified Public Accountants (“the Code”), and we have fulfilled our other ethical responsibilities in
accordance with the Code. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
-1-
AUDITOR'S REPORT - continued
毕马威华振审字第 2607559 号
III. Key Audit Matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial statements of the current period. These matters were addressed in the context of
our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Subsequent measurement of long-term equity investments in associates
Refer to Note (IV) 14 accounting policy to the financial statements, Note (VIII) 12 to the consolidated financial
statements, and Note (XX) 2 to China Merchants Port Group's financial statements.
How the matter was addressed in our
The Key Audit Matter
audit
As at 31 December 2025, the carrying amount of China Our audit procedures to the key audit matter included
Merchants Port Group's long-term equity investments in the following:
associates amounts to RMB 93,811,201,555.24 ,
accounting for 71.45% of the total shareholder's equity. • Understand and evaluate the design and operation
For the year ended 31 December 2025, the investment effectiveness of internal control over key financial
income from associates recognised under the equity statements related to the subsequent measurement
method amounts to RMB 6,035,646,183.31, accounting for of long-term equity investments of associated
Since the amount of income from investments in associates • Evaluate the independence and professional
recognised by China Merchants Port Group for the year is competence of auditors of important joint
significant, we determine the above-mentioned subsequent ventures;
measurement of the long-term equity investments in • Participate in the risk assessment process of
associates as a key audit matter of the consolidated important joint venture auditors based on the
financial statements. purpose of group audit, and evaluate whether the
audit evidence obtained by the risk assessment
procedures implemented by them can provide an
appropriate basis for identifying and evaluating the
risk of material misstatement (RMM) of the
group's financial statements;
• Communicate with important joint venture
auditors on matters related to the assessment of
risk of material misstatement (RMM) of the
Group's financial statements, and evaluate the
appropriateness of further audit procedures they
have implemented to address risk of material
misstatement (RMM) of the Group's financial
statements;
-2-
AUDITOR'S REPORT - continued
毕马威华振审字第 2607559 号
III. Key Audit Matters - continued
How the matter was addressed in our
The Key Audit Matter
audit
• Communicate with the auditors of important joint
ventures about the important matters that may
affect the consolidated financial statements found
during the audit, the procedures implemented and
the conclusions reached;
• Evaluate the appropriateness of the management's
consolidated adjustment to the financial
information of the joint venture based on the
accounting policies of China Merchants Port
Group, including checking the supporting
documents of the relevant difference adjustment
and the accuracy of the subsequent measurement
of the long-term equity investments of the joint
venture based on the adjustment.
Goodwill impairment
Refer to Note (IV) 7 accounting policy to the financial statements, Note (VIII) 20 to the consolidated financial
statements.
How the matter was addressed in our
The Key Audit Matter
audit
As at 31 December 2025, the carrying amount of the Our audit procedures to the key audit matter included
goodwill presented in the consolidated financial statements the following:
of China Merchants Port Group is RMB 6,176,416,050.77.
• Understand and evaluate the design and operation
effectiveness of internal control over key financial
statements related to goodwill impairment;
• Evaluate whether the management's identification
of assets groups, the method of allocating goodwill
to assets groups or assets group portfolios, and the
method used to determine the recoverable amount
meet the requirements of the Accounting
Standards for Business Enterprises;
-3-
AUDITOR'S REPORT - continued
毕马威华振审字第 2607559 号
III. Key Audit Matters - continued
How the matter was addressed in our
The Key Audit Matter
audit
The management of China Merchants Port Group conducts • Based on our understanding of the Based on our
impairment testing on goodwill at the end of each year. understanding of the industry in which China
Management compares the book value of the assets group Merchants Port Group is located, and taking into
or assets group combination containing the apportioned account the historical operation of relevant asset
goodwill with its recoverable amount to determine whether groups and other external information, evaluate
it is necessary to withdraw the impairment. The the rationality of the revenue growth rate adopted
recoverable amount is the higher of the net amount of the by management in determining the present value
fair value of the assets group or the combination of assets of the expected future cash flow;
groups minus the disposal expenses and the present value
of the estimated future cash flow. The determination of the • Use the work of our valuation experts to evaluate
present value of expected future cash flows involves the appropriateness of the valuation method and
significant management judgments, especially the the reasonableness of the discount rate used by
estimation of key assumptions such as revenue growth rate the management to determine the present value of
and discount rate. the estimated future cash flow of the relevant
asset group;
Since the book value of goodwill is materiality to the
financial statements, and the impairment testing of • Carry out sensitivity analysis on the key
goodwill involves management's major judgments and assumptions of revenue growth rate and discount
estimates, these judgments are inherently uncertain, and rate adopted by management, evaluate the possible
may be affected by management bias's bias, we recognise impact of changes in key assumptions on the
the impairment of goodwill as a key audit matter. evaluation results of goodwill impairment, and
whether there is any sign of management bias;
• Compare the key assumptions adopted by
management when preparing the present value of
estimated cash flow in the previous year with the
actual situation of the current year to evaluate
whether there is any sign of management bias;
• Evaluate whether the disclosure of goodwill
impairment and key assumptions adopted in the
financial statements meet the requirements of the
Accounting Standards for Business Enterprises.
-4-
AUDITOR'S REPORT - continued
毕马威华振审字第 2607559 号
IV. Other Information
China Merchants Port Group’s management is responsible for the other information. The other
information comprises all the information included in 2025 annual report of China Merchants Port Group,
other than the financial statements and our auditor's report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
V. Responsibilities of the Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with the Accounting Standards for Business Enterprises, and for the design, implementation
and maintenance of such internal control necessary to enable that the financial statements are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing China Merchants Port
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless management either intends to liquidate China
Merchants Port Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing China Merchants Port Group’s financial
reporting process.
-5-
AUDITOR'S REPORT - continued
毕马威华振审字第 2607559 号
VI. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with CSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with CSAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on China Merchants Port Group’s ability to continue as a
going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause China Merchants Port Group to cease
to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events in a
manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within China Merchants Port Group to express an opinion on the financial statements.
We are responsible for the direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
-6-
AUDITOR'S REPORT - continued
毕马威华振审字第 2607559 号
VI. Auditor's Responsibilities for the Audit of the Financial Statements - continued
We communicate with those charged with governance regarding, among other matters, the planned
scope and timing of the audit and significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence and, where applicable, related
safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in extremely rare circumstances, we determine
that a matter should not be communicated in our report because the adverse consequences of doing so
would reasonably be expected to outweigh the public interest benefits of such communication.
KPMG Huazhen LLP Certified Public Accountants
Registered in the People’s
Republic of China
吴惠煌(Engagement Partner)
Beijing, China 李丹
-7-
CHINA MERCHANTS PORT GROUP CO., LTD.
As at 31 DECEMBER 2025
Consolidated Balance Sheet
RMB
Item Notes Closing Balance Opening Balance
Current Assets:
Cash and bank balances (VIII)1 15,374,846,360.79 16,630,400,701.13
Including: Cash deposited in the finance company (XV)6(1) 4,733,188,415.27 4,745,991,554.35
Financial assets held for trading (VIII)2 7,578,824,365.75 5,685,135,472.01
Derivative financial assets - -
Bills receivable (VIII)3 151,029,884.15 270,127,883.63
Accounts receivable (VIII)4 1,297,166,857.70 1,193,408,383.78
Receivables under financing (VIII)5 114,680,738.25 -
Prepayments (VIII)6 82,819,198.95 59,177,117.22
Funds receivable under centralised management - -
Other receivables (VIII)7 1,012,655,278.64 1,166,499,343.90
Including: Dividends receivable (VIII)7 576,943,449.36 554,387,723.94
Inventories (VIII)8 307,216,425.15 269,958,020.34
Including: Raw materials 288,311,631.73 260,819,412.56
Goods in stock (finished products) 9,419,494.95 4,683,965.30
Data resources - -
Contract assets - -
Assets held for sale - -
Non-current assets due within one year (VIII)9 - 34,997,992.08
Other current assets (VIII)10 158,947,975.17 251,697,812.77
Total current assets 26,078,187,084.55 25,561,402,726.86
Non-current Assets:
Debt investments - -
Other debt investments - -
Long-term receivables (VIII)11 3,874,516,647.46 3,777,373,574.70
Long-term equity investments (VIII)12 103,073,100,064.87 100,018,029,894.96
Investments in other equity instruments (VIII)13 141,766,365.15 139,451,887.05
Other non-current financial assets (VIII)14 28,768,810.95 28,524,600.31
Investment properties (VIII)15 3,157,951,323.78 3,288,690,070.60
Fixed assets (VIII)16 30,442,884,297.82 30,689,217,791.45
Including: Cost of fixed assets 57,478,268,295.87 55,832,500,023.64
Accumulated depreciation 26,823,319,777.57 24,930,618,296.33
Provision for impairment of fixed assets 212,280,683.43 213,290,383.06
Construction in progress (VIII)17 3,403,583,431.48 3,311,109,996.59
Right-of-use assets (VIII)18 8,965,304,928.17 8,957,352,063.54
Intangible assets (VIII)19 17,643,855,579.95 17,335,082,422.84
Including: Data resources 5,616,273.79 6,251,120.27
Development costs (IX)2 34,234,599.73 63,395,053.69
Including: Data resources - -
Goodwill (VIII)20 6,176,416,050.77 5,933,310,929.34
Long-term deferred expenses (VIII)21 919,719,245.18 940,404,479.94
Deferred tax assets (VIII)22 355,487,521.84 365,481,207.77
Other non-current assets (VIII)23 718,921,542.98 1,109,025,181.81
Total non-current assets 178,936,510,410.13 175,956,449,154.59
TOTAL ASSETS 205,014,697,494.68 201,517,851,881.45
The accompanying notes form part of the financial statements.
-1-
CHINA MERCHANTS PORT GROUP CO., LTD.
As at 31 DECEMBER 2025
Consolidated Balance Sheet - continued
RMB
Item Notes Closing Balance Opening Balance
Current liabilities:
Short-term borrowings (VIII)24 19,775,820,831.32 12,791,242,141.69
Financial liabilities held for trading - -
Derivative financial liabilities - -
Bills payable (VIII)25 - 1,536,194.00
Accounts payable (VIII)26 739,900,492.35 785,830,532.33
Advance payments received (VIII)27 12,191,454.52 14,576,237.84
Contract liabilities (VIII)28 446,822,948.79 267,888,272.62
Employee benefits payable (VIII)29 1,297,834,679.20 1,168,592,349.15
Including: Payroll payable 1,252,447,318.40 1,126,682,376.20
Welfare payable - -
Taxes payable (VIII)30 913,284,472.54 725,165,726.32
Including: Taxes payable 904,515,326.51 714,248,068.55
Other payables (VIII)31 2,034,923,078.95 1,923,980,312.98
Including: Dividends payable (VIII)31 135,169,470.79 132,334,744.28
Liabilities held for sale - -
Non-current liabilities due within one year (VIII)32 6,042,522,685.33 10,506,682,795.60
Other current liabilities (VIII)33 2,199,301,417.02 4,061,201,760.72
Total current liabilities 33,462,602,060.02 32,246,696,323.25
Non-current Liabilities:
Long-term borrowings (VIII)34 7,439,956,123.50 15,582,593,255.65
Bonds payable (VIII)35 20,709,787,532.29 13,875,559,119.52
Including: Preference shares - -
Perpetual bonds - -
Lease liabilities (VIII)36 1,690,860,832.08 1,387,206,990.51
Long-term payables (VIII)37 3,721,605,292.07 3,204,582,672.75
Long-term employee benefits payable (VIII)38 546,386,377.62 655,658,044.98
Provisions (VIII)39 185,493,182.45 159,435,795.50
Deferred income (VIII)40 923,349,449.41 1,268,975,316.61
Deferred tax liabilities (VIII)22 4,869,165,969.03 4,795,985,333.59
Other non-current liabilities (VIII)41 164,442,477.36 182,720,254.84
Total non-current liabilities 40,251,047,235.81 41,112,716,783.95
TOTAL LIABILITIES 73,713,649,295.83 73,359,413,107.20
The accompanying notes form part of the financial statements.
-2-
CHINA MERCHANTS PORT GROUP CO., LTD.
As at 31 DECEMBER 2025
Consolidated Balance Sheet - continued
RMB
Item Notes Closing Balance Opening Balance
Shareholders' equity:
Share capital (VIII)42 2,481,842,185.00 2,501,308,481.00
Including: State capital - -
State-owned corporate capital 2,235,944,258.00 2,236,269,506.00
Collective capital - -
Private capital 227,577,129.00 240,947,591.00
Foreign capital 18,320,798.00 24,091,384.00
Other equity instruments - -
Including: Preference shares - -
Perpetual bonds - -
Capital reserve (VIII)44 36,816,586,615.98 37,362,981,831.67
Less: Treasury shares (VIII)43 - 50,559,789.14
Other comprehensive income (VIII)45 -969,163,426.51 -1,558,381,237.45
Including: Translation difference of financial statements
-708,485,813.50 -1,030,995,258.63
denominated in foreign currencies
Specific reserve (VIII)46 57,278,650.39 40,074,647.27
Surplus reserve (VIII)47 1,249,537,330.50 1,249,537,330.50
Including: Legal reserve 1,249,537,330.50 1,249,537,330.50
Arbitrary accumulation fund - -
Retained earnings (VIII)48 24,729,748,576.84 21,957,778,579.11
Total equity attributable to shareholders of the Company 64,365,829,932.20 61,502,739,842.96
Non-controlling interests 66,935,218,266.65 66,655,698,931.29
TOTAL SHAREHOLDERS' EQUITY 131,301,048,198.85 128,158,438,774.25
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 205,014,697,494.68 201,517,851,881.45
The accompanying notes form part of the financial statements.
The financial statements were signed by the following:
Xu Song
_______________________ Huang Zhenzhou
_______________________ Liu Shixia
___________________________
Legal Representative Chief Financial Officer Head of Accounting Department
-3-
CHINA MERCHANTS PORT GROUP CO., LTD.
As at 31 DECEMBER 2025
Balance Sheet of the Company
RMB
Item Notes Closing Balance Opening Balance
Current Assets:
Cash and bank balances 2,754,342,020.39 4,051,544,937.38
Including: Cash deposited in the finance company 1,739,063,279.42 2,738,121,884.17
Financial assets held for trading 3,253,363,657.53 2,902,402,602.73
Derivative financial assets - -
Bills receivable - -
Accounts receivable - -
Receivables under financing - -
Prepayments 339,344.00 879,205.65
Funds receivable under centralised management - -
Other receivables (XX)1 1,176,102,035.60 2,413,442,661.68
Including: Dividends receivable (XX)1 148,813,646.87 965,690,879.89
Inventories - -
Including: Raw materials - -
Goods in stock (finished products) - -
Data resources - -
Contract assets - -
Assets held for sale - -
Non-current assets due within one year 155,510.11 -
Other current assets 10,184,446.02 8,783,543.80
Total current assets 7,194,487,013.65 9,377,052,951.24
Non-current Assets:
Debt investments - -
Other debt investments - -
Long-term receivables 217,060,862.62 9,546,673.32
Long-term equity investments (XX)2 56,471,842,754.45 56,009,282,172.30
Investments in other equity instruments 130,399,200.00 130,125,719.67
Other non-current financial assets - -
Investment properties - -
Fixed assets 24,431,510.36 25,785,696.83
Including: Fixed assets - cost 34,337,104.85 33,196,561.49
Accumulated depreciation 9,905,594.49 7,410,864.66
Provision for impairment of fixed assets - -
Construction in progress 1,014,339.62 607,774.34
Right-of-use assets - -
Intangible assets 87,413,564.25 55,685,403.63
Including: Data resources - -
Development costs 9,629,737.65 53,435,391.51
Including: Data resources - -
Goodwill - -
Long-term deferred expenses 554,450.68 287,141.10
Deferred tax assets - -
Other non-current assets - -
Total non-current assets 56,942,346,419.63 56,284,755,972.70
TOTAL ASSETS 64,136,833,433.28 65,661,808,923.94
The accompanying notes form part of the financial statements.
-4-
CHINA MERCHANTS PORT GROUP CO., LTD.
As at 31 DECEMBER 2025
Balance Sheet of the Company - continued
RMB
Item Notes Closing Balance Opening Balance
Current Liabilities:
Short-term borrowings - 136,552,893.75
Financial liabilities held for trading - -
Derivative financial liabilities - -
Bills payable - -
Accounts payable - -
Advance payments received - -
Contract liabilities - -
Employee benefits payable 68,938,370.19 57,295,154.90
Including: Payroll payable 68,787,532.24 57,135,815.24
Welfare payable - -
Taxes payable 4,410,347.86 2,967,430.48
Including: Taxes payable 4,410,347.86 2,967,430.48
Other payables 864,340,142.41 413,758,779.36
Including: Dividends payable 34,577,578.12 34,577,578.12
Liabilities held for sale - -
Non-current liabilities due within one year 4,107,494,323.34 3,126,770,180.31
Other current liabilities 2,037,223,115.04 4,020,214,246.58
Total current liabilities 7,082,406,298.84 7,757,558,685.38
Non-current Liabilities:
Long-term borrowings 2,242,804,000.00 7,966,000,000.00
Bonds payable 11,000,000,000.00 6,000,000,000.00
Including: Preference shares - -
Perpetual bonds - -
Lease liabilities - -
Long-term payables - -
Long-term employee benefits payable - -
Provisions - -
Deferred income - 11,000,000.00
Deferred tax liabilities 37,309,068.19 37,000,434.40
Other non-current liabilities - -
Total non-current liabilities 13,280,113,068.19 14,014,000,434.40
TOTAL LIABILITIES 20,362,519,367.03 21,771,559,119.78
The accompanying notes form part of the financial statements.
-5-
CHINA MERCHANTS PORT GROUP CO., LTD.
As at 31 DECEMBER 2025
Balance Sheet of the Company - continued
RMB
Item Notes Closing Balance Opening Balance
Shareholders’ equity
Share capital 2,481,842,185.00 2,501,308,481.00
Including: State capital - -
State-owned corporate capital 2,235,944,258.00 2,236,269,506.00
Collective capital - -
Private capital 227,577,129.00 240,947,591.00
Foreign capital 18,320,798.00 24,091,384.00
Other equity instruments - -
Including: Preference shares - -
Perpetual bonds - -
Capital reserve 37,426,664,891.68 37,773,833,882.62
Less: Treasury shares - 50,559,789.14
Other comprehensive income 108,754,933.18 130,414,442.07
Including: Translation difference of financial statements
- -
denominated in foreign currencies
Specific reserve - -
Surplus reserve 1,249,537,330.50 1,249,537,330.50
Including: Legal reserve 1,249,537,330.50 1,249,537,330.50
Arbitrary accumulation fund - -
Retained earnings 2,507,514,725.89 2,285,715,457.11
Total shareholders’ equity 43,774,314,066.25 43,890,249,804.16
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 64,136,833,433.28 65,661,808,923.94
The accompanying notes form part of the financial statements.
-6-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Income Statement
RMB
For the year ended 31 December
Item Notes
Current Year Prior Year
I. Total operating income (VIII)49 17,246,382,527.85 16,130,778,028.24
Including: Operating income 17,246,382,527.85 16,130,778,028.24
II. Total operating costs 13,239,243,126.94 13,409,015,440.91
Less: Operating costs (VIII)49 9,656,187,248.28 9,196,016,692.35
Taxes and surcharges (VIII)50 367,073,400.66 332,333,763.15
Selling and distribution expenses - -
General and administrative expenses (VIII)51 1,533,391,292.39 1,821,544,282.18
Research and development expenses (VIII)52 177,750,273.52 201,755,066.36
Financial expenses (VIII)53 1,504,840,912.09 1,857,365,636.87
Including: Interest expenses 1,910,007,525.81 2,215,219,118.52
Interest income 379,520,826.85 477,430,320.41
Net exchange loss (“-” for gains) -44,557,295.34 109,256,513.08
Add: Other income (VIII)54 172,426,753.42 185,410,303.29
Investment income (“-” for losses) (VIII)55 6,421,520,127.75 6,546,996,531.50
Including: Income from investments in associates
(VIII)55 6,324,208,650.73 6,441,005,613.25
and joint ventures
Income arising from derecognition of
- -
financial assets measured at amortised cost
Net exposure hedging income (“-” for losses) - -
Gains from changes in fair value (“-” for losses) (VIII)56 42,374,127.06 390,232,365.15
Reversal of credit impairment (VIII)57 -290,616,620.93 272,994,309.08
Impairment losses (“-” for losses) (VIII)58 -10,072,860.74 -8,880,788.88
Gains from asset disposals (“-” for losses) (VIII)59 7,391,759.06 34,062,395.75
The accompanying notes form part of the financial statements.
-7-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Income Statement - continued
RMB
For the year ended 31 December
Item Notes
Current Year Prior Year
III. Operating profit 10,350,162,686.53 10,142,577,703.22
Add: Non-operating income (VIII)60 83,919,649.43 59,018,655.32
Including: Government grants - -
Less: Non-operating expenses (VIII)61 57,795,398.52 70,252,101.73
IV. Profit before income tax 10,376,286,937.44 10,131,344,256.81
Less: Income tax expenses (VIII)64 1,470,295,014.95 1,252,837,946.90
V. Net profit for the year 8,905,991,922.49 8,878,506,309.91
(I) Net profit classified by continuity of operations
(II) Net profit classified by ownership
VI. Other comprehensive income, net of tax (VIII)45 1,426,044,252.93 -1,529,342,680.40
(I) Other comprehensive income (net of tax) attributable to
shareholders of the Company
(1) Remeasurement of defined benefit plan 23,088,562.44 -24,453,072.38
(2) Other comprehensive income recognised under the equity
method
(3) Changes in fair value of investments in other equity
instruments
(4) Changes in fair value of entity’s own credit risk - -
(5) Others - -
(1) Other comprehensive income recognised under the equity
method
(2) Changes in fair value of other debt investments - -
(3) Amount of financial assets reclassified into other
comprehensive income
- -
(4) Credit losses of other debt investments - -
(5) Cash flow hedge reserve (effective part of cash flow
hedging profit and loss)
- -
(6) Translation differences arising from translation of foreign
currency financial statements
(7) Others - -
(II) Other comprehensive income (net of tax) attributable to
non-controlling interests
VII. Total comprehensive income for the year 10,332,036,175.42 7,349,163,629.51
(I) Attributable to shareholders of the Company 5,200,361,161.78 3,861,546,674.06
(II) Attributable to non-controlling interests 5,131,675,013.64 3,487,616,955.45
VIII. Earnings per share
(I) Basic earnings per share (RMB/share) 1.85 1.81
(II) Diluted earnings per share (RMB/share) 1.85 1.81
The accompanying notes form part of the financial statements.
-8-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2025
Income Statement of the Company
RMB
For the year ended 31 December
Item Notes
Current Year Prior Year
I. Total operating income (XX)3 21,190,068.20 18,456,183.80
Including: Operating costs (XX)3 3,739,443.84 3,739,443.84
Taxes and surcharges 1,195,169.13 1,304,373.74
Selling and distribution expenses - -
General and administrative expenses 185,237,799.33 157,158,232.51
Research and development expenses 8,137,624.92 17,042,748.71
Financial expenses 393,541,343.52 406,958,438.88
Including: Interest expenses 435,895,067.88 483,982,034.35
Interest income 54,998,360.11 85,684,756.27
Net exchange loss (“-” for losses) 8,468,483.63 2,351,741.58
Add: Other income 302,422.78 397,379.05
Investment income (“-” for losses) (XX)4 2,626,531,594.62 2,453,196,389.65
Including: Income from investments in associates
and joint ventures
(XX)4 1,227,350,189.01 1,154,581,593.08
Income arising from derecognition of
financial assets measured at amortised cost
- -
Net exposure hedging income (“-” for losses) - -
Gains from changes in fair value (“-” for losses) 3,782,835.61 4,999,863.00
Reversal of credit impairment (“-” for losses) - -
Impairment losses (“-” for losses) - -
Gains from asset disposals (“-” for losses) - -9,551.52
II. Operating profit 2,059,955,540.47 1,890,837,026.30
Add: Non-operating income 1,920,689.20 185,319.67
Including: Government grants -
Less: Non-operating expenses - -
III. Profit before income tax 2,061,876,229.67 1,891,022,345.97
Less: Income tax expenses 240,263.71 471,198.63
IV. Net profit for the year 2,061,635,965.96 1,890,551,147.34
Net profit from continuing operations (“-” for net loss) 2,061,635,965.96 1,890,551,147.34
Net profit from discontinued operations (“-” for net loss) - -
V. Other comprehensive income, net of tax -21,659,508.89 9,893,609.24
(I) Items that will not be reclassified to profit or loss 427,516.47 -14,557,437.08
under the equity method
instruments
(II) Items that may be reclassified to profit or loss -22,087,025.36 24,451,046.32
under the equity method
-22,087,025.36 24,451,046.32
comprehensive income
- -
profit and loss)
- -
currency financial statements
- -
VI. Total comprehensive income for the year 2,039,976,457.07 1,900,444,756.58
The accompanying notes form part of the financial statements.
-9-
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Cash Flow Statement
RMB
For the year ended 31 December
Item Notes
Current Year Prior Year
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services 17,599,258,943.33 16,589,207,291.70
Refund of taxes 28,876,015.22 180,073,212.01
Proceeds from other operating activities (VIII)67(1) 979,067,512.74 1,413,169,094.11
Sub-total of cash inflows 18,607,202,471.29 18,182,449,597.82
Payment for goods and services 4,540,007,962.94 4,334,345,500.75
Payment to and for employees 3,655,492,281.56 3,464,632,790.50
Payment of various taxes 1,615,413,653.01 1,594,215,474.70
Payment for other operating activities (VIII)67(1) 621,856,184.73 776,043,007.47
Sub-total of cash outflows 10,432,770,082.24 10,169,236,773.42
Net cash inflow from operating activities (VIII)68(1) 8,174,432,389.05 8,013,212,824.40
II. Cash flows from investing activities:
Proceeds from disposal of investments 48,319,800,000.00 27,563,331,868.18
Investment returns received 3,124,782,018.71 2,945,983,531.55
Net proceeds from disposal of fixed assets, intangible assets and
other long-term assets
Net proceeds from disposal of subsidiaries and other business
- -
units
Proceeds from other investing activities (VIII)67(2) 243,876,733.40 16,260,626.10
Sub-total of cash inflows 51,892,517,216.85 30,588,744,503.01
Payment for acquisition of fixed assets, intangible assets and
other long-term assets
Payment for acquisition of investments 50,171,806,292.72 27,610,855,675.82
Net payment for acquisition of subsidiaries and other business
units
Payment for other investing activities (VIII)67(2) 198,813,248.05 261,140,547.34
Sub-total of cash outflows 52,560,803,164.93 30,110,416,048.42
Net cash inflow from investing activities -668,285,948.08 478,328,454.59
III. Cash flows from financing activities:
Proceeds from investors 7,225,165.59 76,758,234.49
Including: Proceeds from non-controlling shareholders of
- 43,561,800.00
subsidiaries
Proceeds from borrowings 34,549,428,532.14 26,764,844,974.84
Proceeds from other financing activities (VIII)67(3) 296,545,809.81 55,862,550.05
Sub-total of cash inflows 34,853,199,507.54 26,897,465,759.38
Repayments of borrowings 34,753,648,649.24 27,301,766,289.39
Payment for dividends, profit distributions or interest (VIII)68(3) 6,676,591,884.69 6,961,913,964.29
Including: Dividends and profits paid to
non-controlling shareholders of subsidiaries
Payment for other financing activities (VIII)67(3) 2,194,782,463.37 539,924,528.35
Sub-total of cash outflows 43,625,022,997.30 34,803,604,782.03
Net cash outflow from financing activities -8,771,823,489.76 -7,906,139,022.65
IV. Effect of foreign exchange rate changes on cash
-5,034,844.08 -88,946,332.53
and cash equivalents
V. Net increase in cash and cash equivalents (VIII)68(1) -1,270,711,892.87 496,455,923.81
Add: Cash and cash equivalents at the beginning of the year 16,515,069,554.91 16,018,613,631.10
VI. Cash and cash equivalents at the end of the year (VIII)68(2) 15,244,357,662.04 16,515,069,554.91
The accompanying notes form part of the financial statements.
- 10 -
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2025
Cash Flow Statement of the Company
RMB
For the year ended 31 December
Item Notes
Current Year Prior Year
I. Cash flows from operating activities:
Proceeds from sale of goods and rendering of services - -
Refunds of taxes 220,631.35 4,722,220.72
Proceeds from other operating activities 157,346,724.18 465,774,682.36
Sub-total of cash inflows 157,567,355.53 470,496,903.08
Payment for goods and services 3,418,230.00 105,600.00
Payment to and for employees 106,957,419.23 99,220,574.59
Payment of various taxes 580,390.65 548,632.16
Payment for other operating activities 137,691,009.08 420,429,917.05
Sub-total of cash outflows 248,647,048.96 520,304,723.80
Net cash outflow from operating activities -91,079,693.43 -49,807,820.72
II. Cash flows from investing activities:
Proceeds from disposal of investments 21,124,800,000.00 10,500,000,000.00
Investment returns received 2,845,845,933.27 922,093,300.17
Net proceeds from disposal of fixed assets, intangible assets and
- 4,620.00
other long-term assets
Net proceeds from disposals of subsidiaries and
- -
other business units
Proceeds from other investing activities 2,157,923,095.86 2,105,669,483.62
Sub-total of cash inflows 26,128,569,029.13 13,527,767,403.79
Payment for acquisition of fixed assets, intangible assets and
other long-term assets
Payment for acquisition of investments 21,350,000,000.00 11,945,339,800.00
Net payment for acquisition of subsidiaries and other
- -
business units
Payment for other investing activities 1,645,853,857.02 1,990,013,432.08
Sub-total of cash outflows 22,997,692,561.89 13,953,553,654.52
Net cash inflow/(outflow) from investing activities 3,130,876,467.24 -425,786,250.73
III. Cash flows from financing activities:
Proceeds from investors 7,225,165.59 33,196,434.49
Proceeds from borrowings 9,453,406,452.28 14,361,983,943.48
Proceeds from other financing activities 11,831,089.81 11,034,623.06
Sub-total of cash inflows 9,472,462,707.68 14,406,215,001.03
Repayments of borrowings 11,160,273,000.00 11,207,000,000.00
Payment for dividends, profit distributions or interests 2,296,327,290.40 1,920,172,028.00
Payment for other financing activities 354,268,537.81 68,463,301.09
Sub-total of cash outflows 13,810,868,828.21 13,195,635,329.09
Net cash (outflow)/inflow from financing activities -4,338,406,120.53 1,210,579,671.94
IV. Effect of foreign exchange rate changes on cash
-614,028.81 312,670.57
and cash equivalents
V. Net (decrease)/increase in cash and cash equivalents
-1,299,223,375.53 735,298,271.06
(“-” for net decrease)
Add: Cash and cash equivalents at the beginning of the year 4,016,283,989.90 3,280,985,718.84
VI. Cash and cash equivalents at the end of the year 2,717,060,614.37 4,016,283,989.90
The accompanying notes form part of the financial statements.
- 11 -
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Statement of Changes in Shareholders' Equity
RMB
Current Year
Equity attributable to shareholders of the Company
Including:
Other equity instruments Translation
Item difference of
Less: Other Non-controlling
financial Total
Share capital Capital reserve Treasury comprehensive Specific reserve Surplus reserve Retained earnings Subtotal interests
statements
Preference Perpetual shares income
Others denominated in
shares bonds foreign
currencies
I. Balance at the end of the previous year 2,501,308,481.00 - - - 37,362,981,831.67 50,559,789.14 -1,558,381,237.45 -1,030,995,258.63 40,074,647.27 1,249,537,330.50 21,957,778,579.11 61,502,739,842.96 66,655,698,931.29 128,158,438,774.25
Add: Changes in accounting policies - - - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - - - -
Business combination involving entities
- - - - - - - - - - - - - -
under common control
Others - - - - - - - - - - - - - -
II. Balance at the beginning of the year 2,501,308,481.00 - - - 37,362,981,831.67 50,559,789.14 -1,558,381,237.45 -1,030,995,258.63 40,074,647.27 1,249,537,330.50 21,957,778,579.11 61,502,739,842.96 66,655,698,931.29 128,158,438,774.25
III. Changes in equity during the year -19,466,296.00 - - - -546,395,215.69 -50,559,789.14 589,217,810.94 322,509,445.13 17,204,003.12 - 2,771,969,997.73 2,863,090,089.24 279,519,335.36 3,142,609,424.60
(I) Total comprehensive income - - - - - - 589,008,913.80 322,509,445.13 - - 4,611,352,247.98 5,200,361,161.78 5,131,675,013.64 10,332,036,175.42
(II) Shareholders’ contributions of capital -19,466,296.00 - - - -546,395,215.69 -50,559,789.14 208,897.14 - - 454,446.93 -514,604,864.28 -1,661,668,210.63 -2,176,273,074.91
- - - - - - - - - - - - - -
instruments
(III) Appropriation of profits - - - - - - - - - - -1,839,836,697.18 -1,839,836,697.18 -3,202,040,013.42 -5,041,876,710.60
Including: Legal reserve - - - - - - - - - - - - - -
Arbitrary accumulation fund - - - - - - - - - - - - - -
(IV) Transfers within equity - - - - - - - - - - - - - -
- - - - - - - - - - - - - -
transfer
- - - - - - - - - - - - - -
transfer
- - - - - - - - - - - - - -
transferred to retained earnings
- - - - - - - - - - - - - -
to retained earnings
(V) Specific reserve - - - - - - - - 17,170,488.92 - - 17,170,488.92 11,552,545.77 28,723,034.69
(VI) Others - - - - - - - - - - - - - -
IV. Balance at the end of the year 2,481,842,185.00 - - - 36,816,586,615.98 - -969,163,426.51 -708,485,813.50 57,278,650.39 1,249,537,330.50 24,729,748,576.84 64,365,829,932.20 66,935,218,266.65 131,301,048,198.85
- 12 -
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2025
Consolidated Statement of Changes in Shareholders' Equity - continued
RMB
Prior Year
Equity attributable to shareholders of the Company
Including:
Other equity instruments Translation
Item difference of
Less: Other Non-controlling
financial Retained Total
Share capital Capital reserve Treasury comprehensive Specific reserve Surplus reserve Subtotal interests
statements earnings
Preference perpetual shares income
others denominated in
shares bonds foreign
currencies
I. Balance at the end of the previous year 2,499,074,661.00 - - - 37,076,846,803.06 - -903,626,594.35 -453,976,318.25 34,003,994.41 1,095,980,563.68 19,045,313,519.75 58,847,592,947.55 66,722,341,481.26 125,569,934,428.81
Add: Changes in accounting policies - - - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - - - -
Business combination involving entities
- - - - - - - - - - - - - -
under common control
Others - - - - - - - - - - - - - -
II. Balance at the beginning of the year 2,499,074,661.00 - - - 37,076,846,803.06 - -903,626,594.35 -453,976,318.25 34,003,994.41 1,095,980,563.68 19,045,313,519.75 58,847,592,947.55 66,722,341,481.26 125,569,934,428.81
III. Changes in equity during the year 2,233,820.00 - - - 286,135,028.61 50,559,789.14 -654,754,643.10 -577,018,940.38 6,070,652.86 153,556,766.82 2,912,465,059.36 2,655,146,895.41 -66,642,549.97 2,588,504,345.44
(I) Total comprehensive income - - - - - - -654,754,643.10 -577,018,940.38 - - 4,516,301,317.16 3,861,546,674.06 3,487,616,955.45 7,349,163,629.51
(II) Shareholders’ contributions of capital 2,233,820.00 - - - 286,135,028.61 50,559,789.14 - - - - - 237,809,059.47 56,472,428.06 294,281,487.53
- - - - - - - - - - - - - -
other equity instruments
(III) Appropriation of profits - - - - - - - - - 153,556,766.82 -1,603,836,257.80 -1,450,279,490.98 -3,609,778,395.68 -5,060,057,886.66
Including: Legal reserve - - - - - - - - - 153,556,766.82 -153,556,766.82 - - -
Arbitrary accumulation fund - - - - - - - - - - - - - -
(IV) Transfers within equity - - - - - - - - - - - - - -
- - - - - - - - - - - - - -
capital reserve transfer
- - - - - - - - - - - - - -
transfer
- - - - - - - - - - - - - -
transferred to retained earnings
- - - - - - - - - - - - - -
retained earnings
(V) Specific reserve - - - - - - - - 6,070,652.86 - - 6,070,652.86 -953,537.80 5,117,115.06
(VI) Others - - - - - - - - - - - - - -
IV. Balance at the end of the year 2,501,308,481.00 - - - 37,362,981,831.67 50,559,789.14 -1,558,381,237.45 -1,030,995,258.63 40,074,647.27 1,249,537,330.50 21,957,778,579.11 61,502,739,842.96 66,655,698,931.29 128,158,438,774.25
The accompanying notes form part of the financial statements.
- 13 -
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company's Statement of Changes in Shareholders' Equity
RMB
For the year ended 31 December 2025
Other equity instruments Including: Translation
difference of financial
Item Other comprehensive
Share capital Capital reserve Less: Treasury shares statements Specific reserve Surplus reserve Retained earnings Total
Preference perpetual income
others denominated in foreign
shares bonds
currencies
I. Balance at the end of the previous year 2,501,308,481.00 - - - 37,773,833,882.62 50,559,789.14 130,414,442.07 - - 1,249,537,330.50 2,285,715,457.11 43,890,249,804.16
Add: Changes in accounting policies - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - -
Others - - - - - - - - - - - -
II. Balance at the beginning of the year 2,501,308,481.00 - - - 37,773,833,882.62 50,559,789.14 130,414,442.07 - - 1,249,537,330.50 2,285,715,457.11 43,890,249,804.16
III. Changes in equity during the year -19,466,296.00 - - - -347,168,990.94 -50,559,789.14 -21,659,508.89 - - - 221,799,268.78 -115,935,737.91
(I) Total comprehensive income - - - - - - -21,659,508.89 - - - 2,061,635,965.96 2,039,976,457.07
(II) Shareholders’ contributions of capital -19,466,296.00 - - - -347,168,990.94 -50,559,789.14 - - - - - -316,075,497.80
(III) Appropriation of profits - - - - - - - - - - -1,839,836,697.18 -1,839,836,697.18
Including: Legal reserve - - - - - - - - - - - -
Arbitrary accumulation fund - - - - - - - - - - - -
(IV) Transfers within equity - - - - - - - - - - -
- - - - - - - - - - - -
transferred to retained earnings
- - - - - - - - - - -
to retained earnings
(V) Specific reserve - - - - - - - - - - -
(VI) Others - - - - - - - - - - -
IV. Balance at the end of the year 2,481,842,185.00 - - - 37,426,664,891.68 - 108,754,933.18 - - 1,249,537,330.50 2,507,514,725.89 43,774,314,066.25
- 14 -
CHINA MERCHANTS PORT GROUP CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2025
The Company's Statement of Changes in Shareholders' Equity - continued
RMB
Prior Year
Other equity instruments Including: Translation
difference of financial
Item Other comprehensive
Share capital Capital reserve Less: Treasury shares statements Specific reserve Surplus reserve Retained earnings Total
Preference perpetual income
others denominated in foreign
shares bonds
currencies
I. Balance at the end of the previous year 2,499,074,661.00 - - - 37,704,543,586.11 - 120,520,832.83 - - 1,095,980,563.68 1,999,000,567.57 43,419,120,211.19
Add: Changes in accounting policies - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - -
Others - - - - - - - - - - - -
II. Balance at the beginning of the year 2,499,074,661.00 - - - 37,704,543,586.11 - 120,520,832.83 - - 1,095,980,563.68 1,999,000,567.57 43,419,120,211.19
III. Changes in equity during the year 2,233,820.00 - - - 69,290,296.51 50,559,789.14 9,893,609.24 - - 153,556,766.82 286,714,889.54 471,129,592.97
(I) Total comprehensive income - - - - - - 9,893,609.24 - - - 1,890,551,147.34 1,900,444,756.58
(II) Shareholders’ contributions of capital 2,233,820.00 - - - 69,290,296.51 50,559,789.14 - - - - - 20,964,327.37
(III) Appropriation of profits - - - - - - - - - 153,556,766.82 -1,603,836,257.80 -1,450,279,490.98
Including: Legal reserve - - - - - - - - - 153,556,766.82 -153,556,766.82 -
Arbitrary accumulation fund - - - - - - - - - - - -
(IV) Transfers within equity - - - - - - - - - - - -
- - - - - - - - - - - -
transferred to retained earnings
- - - - - - - - - - - -
retained earnings
(V) Specific reserve - - - - - - - - - - - -
(VI) Others - - - - - - - - - - - -
IV. Balance at the end of the year 2,501,308,481.00 - - - 37,773,833,882.62 50,559,789.14 130,414,442.07 - - 1,249,537,330.50 2,285,715,457.11 43,890,249,804.16
The accompanying notes form part of the financial statements.
- 15 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(I) GENERAL INFORMATION OF THE COMPANY
China Merchants Port Group Co., Ltd. (hereinafter referred to as the "Company") is a joint-stock
company incorporated in Shenzhen, Guangdong Province, on 16 January 1993.
The headquarters of the Company is located in Shenzhen, Guangdong Province. The Company and
its subsidiaries (collectively the "Group") are actually engaged in the principal operating activities
of port services, bonded logistics services and other businesses such as property development and
investment.
The Company's and consolidated financial statements were approved by the Board of Directors on
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises (hereinafter referred to
as "ASBE") issued by the Ministry of Finance. In addition, the Group has disclosed relevant
financial information in accordance with Information Disclosure and Presentation Rules for
Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting
(Revised in 2023).
Going concern
As at 31 December 2025, the Group had total current liabilities in excess of total current assets by
RMB 7,384,414,975.47. As at 31 December 2025, the Group had available and unused credit
facilities and bonds amounting to RMB 49,239,851,263.83 , which is greater than the balance of
the net current liabilities. The Group can obtain financial support from the available line of credit
and bonds when needed. Therefore, the financial statements have been prepared on a going concern
basis.
(III) STATEMENT OF COMPLIANCE WITH THE ASBE
The financial statements prepared by the Company comply with the requirements of the Accounting
Standards for Business Enterprises, and truly and completely reflect the consolidated and
Company's financial position as at 31 December 2025, and the consolidated and Company's
operating results, consolidated and Company's shareholders’ equity, and consolidated and
Company's cash flow for the year ended 31 December 2025.
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
The financial year of the Group is from 1 January to 31 December of the Gregorian calendar year.
- 16 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Business cycle refers to the period from the purchase of assets for processing to the realization of
cash or cash equivalents. The Group is actually engaged in the principal operating activities of port
services, bonded logistics services and other businesses such as property development and
investment.
The Company’s functional currency is Renminbi (hereinafter referred to as "RMB"), and these
financial statements are presented in RMB. The Company and its domestic subsidiaries use RMB
as their bookkeeping base currency. The Company's overseas subsidiaries determine their
functional currency according to the currency in the primary economic environment in which they
operate. The Company adopts RMB to prepare its financial statements.
The Group has adopted the accrual basis of accounting. Except for financial instruments which are
measured at fair value, the Group adopts the historical cost as the principle of measurement of the
financial statements. Upon being restructured into a stock company, the fixed assets and intangible
assets initially contributed by the state-owned shareholders are recognised based on the valuation
amounts confirmed by the state-owned assets administration department. Where assets are impaired,
provisions for asset impairment are made in accordance with the relevant requirements.
Where the historical cost is adopted as the measurement basis, assets are recorded at the amount of
cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time
of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or the
contractual amounts for assuming the present obligation, or, at the amounts of cash or cash
equivalents expected to be paid to settle the liabilities in the normal course of business.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether that
price is directly observable or estimated using valuation technique. Fair value measurement and
disclosure in the financial statements are determined according to the above basis.
In the measurement of non-financial assets at fair value, market participants' ability to best utilize
such assets to generate most economic benefits, or the ability to sell such assets to other market
participants who are able to best utilize the assets to generate economic benefits is taken into
account.
For financial assets of which transaction prices are the fair value on initial recognition, and of which
valuation technique involving unobservable input is used in subsequent measurement, the valuation
technique in the course of valuation is adjusted to enable the result of initial recognition based on
the valuation technique equal to the transaction price.
- 17 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Fair value measurements are categorized into Level 1, 2 or 3 based on the degree to which the inputs
to the fair value measurements are observable and the significance of the inputs to the fair value
measurement in its entirety, which are described as follows:
• Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that
the entity can access at the measurement date;
• Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable
for the asset or liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs for the asset or liability.
Item Materiality criteria
Significant prepayments aged more than 1 year The amount exceeds RMB 10 million individually
Significant dividends receivable aged more than
The amount exceeds RMB 5 million individually
Significant other receivables for which bad debt
The amount exceeds RMB 10 million individually
provision is assessed on an individual basis
Reversal or recovery of significant bad debt
The amount exceeds RMB 10 million individually
provision
Impairment testing of significant long-term equity The carrying amount of an individual long-term equity investment ≥2%
investments of the amount of total assets
The year-end carrying amount of an individual construction in progress
Significant construction in progress
ranges top ten
Impairment testing of significant construction The carrying amount of an individual construction in progress ≥20% of
in progress the amount of construction in progress
Significant accounts payable aged more than 1 year The amount exceeds RMB 10 million individually
Significant advance payments received aged
The amount exceeds RMB 10 million individually
more than 1 year
Significant contract liabilities aged more than
The amount exceeds RMB 10 million individually
Significant dividends payable aged more than
The amount exceeds RMB 50 million individually
Significant other payables aged more than 1 year The amount exceeds RMB 30 million individually
Cash flows from significant investing activities The amount exceeds 0.5% of the amount of total assets individually
The amount of total revenue or total assets of subsidiaries exceeds 15% of
Significant non-wholly owned subsidiaries
the amount of total consolidated revenue or total consolidated assets
Joint ventures or associates in which the carrying amount of a long-term
equity investment accounts for ≥10% of the amount of total consolidated
Significant joint ventures or associates
assets and in which the investment income recognised under the equity
method accounts for ≥10% of the amount of total consolidated profit
The amount exceeds 0.3% of the amount of total assets individually,
Significant commitments including reorganization, mergers and acquisitions, and building of
construction in progress, etc.
- 18 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
A business combination involving enterprises under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory.
Assets and liabilities obtained by the combining party shall be measured at their respective carrying
amounts as recorded by the final controlling party in the consolidated financial statements at the
date of the combination. The difference between share of the carrying amount of the net assets
obtained and the carrying amount of the consideration paid for the combination (or total par value
of issued shares) is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference, any excess shall be adjusted against surplus reserve and retained
earnings in turn.
Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred. The merger date is the date on which the combining party actually obtains
control over the combined party.
A business combination not involving enterprises under common control is a business combination
in which all of the combining enterprises are not ultimately controlled by the same party or parties
before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets
given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for
control of the acquiree. The intermediary expenses (fees in respect of auditing, legal services,
valuation and consultancy services, etc.) and other general and administrative expenses attributable
to the business combination are recognised in profit or loss in the periods when they are incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired by the acquirer in a
business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date. The acquisition date refers to the date on which the acquirer actually obtains
control over the acquiree.
- 19 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's
identifiable net assets, after considering the impact of relevant deferred income tax, the difference
is treated as an asset and recognised as goodwill, which is measured at cost on initial recognition.
Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's
identifiable net assets, the acquirer reassesses the measurement of the fair values of the acquiree's
identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination.
If after that reassessment, the cost of combination is still less than the acquirer's interest in the fair
value of the acquiree's identifiable net assets, the acquirer recognises the remaining difference
immediately in profit or loss for the current period.
Goodwill arising from a business combination is measured at cost less accumulated impairment
losses, and is presented separately in the consolidated financial statements. Goodwill shall be
subject to impairment testing at least at the end of each year.
The impairment testing of goodwill shall be conducted in combination with the relevant assets
group or assets group combination. That is, since the purchase date, the book value of goodwill is
apportioned to the assets group or combination of assets groups that can benefit from the synergistic
effect of business combination in a reasonable way. If the recoverable amount of the assets group
or combination of assets groups containing apportioned goodwill is lower than its book value, the
corresponding impairment loss is recognised. The amount of impairment loss shall first offset the
book value of goodwill apportioned to the assets group or assets group portfolio, and then offset the
book value of other assets in proportion to the proportion of the book value of other assets other
than goodwill in the assets group or assets group portfolio.
The recoverable amount is the higher of the net amount of the fair value of the assets minus the
disposal expenses and the present value of the estimated future cash flow of the assets.
The impairment loss of goodwill shall be included in the current profit and loss when it occurs, and
shall not be reversed in future accounting periods.
- 20 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The consolidation scope of consolidated financial statements is determined on the basis of control.
Control exists when the investor has power over the investee; is exposed, or has rights, to variable
returns from its involvement with the investee; and has the ability to use its power over the investee
to affect its returns. The Group reassesses whether or not it controls an investee if facts and
circumstances indicate that there are changes in the above elements of the definition of control.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases
when the Group loses control of the subsidiary.
For a subsidiary already disposed of by the Group, the operating results and cash flows before the
date of disposal (the date when control is lost) are included in the consolidated income statement
and consolidated cash flow statement, as appropriate.
For subsidiaries acquired through a business combination involving enterprises not under common
control, when preparing the consolidated financial statements of the current period, the purchased
subsidiary will be included in the consolidation scope of the Company from the acquisition date on
the basis of the fair value of the identifiable assets and liabilities of the purchased subsidiary
determined on the acquisition date. The operating results and cash flows from the acquisition date
(the date when control is obtained) are included in the consolidated income statement and
consolidated cash flow statement, as appropriate.
No matter when the business combination occurs in the reporting period, subsidiaries acquired
through a business combination involving enterprises under common control, when preparing the
consolidated financial statements of the current period, the book value of each assets and liability
of the consolidated subsidiary in the final controller's financial statements is taken as the basis, as
if they had been included in the scope of consolidation from the date when they first came under
the common control of the ultimate controlling party. Their operating results and cash flows from
the date when they first came under the common control of the ultimate controlling party are
included in the consolidated income statement and consolidated cash flow statement, as appropriate.
The significant accounting policies and accounting periods adopted by the subsidiaries are
determined based on the uniform accounting policies and accounting periods set out by the
Company.
Where the accounting policies and accounting periods adopted by subsidiaries are inconsistent with
those of the Company, appropriate adjustments are made to the subsidiaries' financial statements in
accordance with the accounting policies of the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
- 21 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The portion of subsidiaries' equity that is not attributable to the Company is treated as non-
controlling interests and presented as " non-controlling interests " in the consolidated balance sheet
under the line item of shareholders' equity. The portion of net profits or losses of subsidiaries for
the period attributable to non-controlling interests is presented as " non-controlling interests " in the
consolidated income statement under the line item of "net profit". The portion of comprehensive
income of subsidiaries for the period attributable to non-controlling interests is presented as "
attributable to non-controlling interests " in the consolidated income statement under the line item
of "total comprehensive income".
When the amount of loss for the period attributable to the non-controlling shareholders of a
subsidiary exceeds the non-controlling shareholders' portion of the opening balance of owners'
equity of the subsidiary, the excess amount is still allocated against non-controlling interests.
Acquisition of non-controlling interests or disposal of interests in a subsidiary that does not result
in the loss of control over the subsidiary is accounted for as equity transactions. The carrying
amounts of the Company's interests and non-controlling interests are adjusted to reflect the changes
in their relative interests in the subsidiary. The difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is adjusted
to capital reserve. If the capital reserve is not sufficient to absorb the difference, surplus reserve and
retained earnings shall be offset in turn.
For the stepwise acquisition of equity interest till acquiring control after a few transactions and
leading to business combination not involving enterprises under common control, it shall be dealt
with based on whether it belongs to 'package deal': if it belongs to 'package deal', it will be
accounted for as a transactions to acquire control; if it does not belong to 'package deal', it will be
accounted for as a transaction to acquire control on acquisition date, and the fair value of acquiree'
shares held before acquisition date will be revalued, and the difference between fair value and
carrying amount will be recognised in profit or loss of the current period; if acquiree' shares held
before acquisition date involve changes in other comprehensive income and other changes in
owners' equity under equity method, it will be transferred to income of acquisition date.
When the Group loses control over a subsidiary due to disposal of equity investment or other
reasons, any retained interest is re-measured at its fair value at the date when control is lost. The
difference between the sum of the consideration obtained from the disposal of equity and the fair
value of the remaining equity, less the share of the net assets of the parent company that should be
continuously calculated from the purchase date based on the original shareholding ratio, is included
in the investment income of the current period when the control right is lost, and at the same time,
the goodwill is offset. Other comprehensive income associated with investment in the former
subsidiary is reclassified to investment income in the period in which control is lost.
- 22 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
When the Group loses control of a subsidiary in two or more arrangements (transactions), terms
and conditions of the arrangements (transactions) and their economic effects are considered. One
or more of the following indicate that the Group shall account for the multiple arrangements as a
'package deal': (i) they are entered into at the same time or in contemplation of each other; (ii) they
form a complete transaction designed to achieve an overall commercial effect; (iii) the occurrence
of one transaction is dependent on the occurrence of at least one other transaction; (iv) one
transaction alone is not economically justified, but it is economically justified when considered
together with other transactions. Where the transactions of disposal of equity investments in a
subsidiary until the loss of control are assessed as a package deal, these transactions are accounted
for as one transaction of disposal of a subsidiary with loss of control. Before losing control, the
difference of consideration received on disposal and the share of net assets of the subsidiary
continuously calculated from acquisition date is recognised as other comprehensive income. When
losing control, the cumulated other comprehensive income is transferred to profit or loss of the
period of losing control. If the transactions of disposal of equity investments in a subsidiary are not
assessed as a package deal, these transactions are accounted for as unrelated transactions.
Joint venture arrangement refers to an arrangement jointly controlled by two or more participants.
The joint venture arrangement of the Group has the following characteristics: (1) all participants
are bound by the arrangement; (2) Two or more participants exercise joint control over the
arrangement. None of the participants can control the arrangement alone, and none of the
participants with joint control over the arrangement can prevent other participants or a combination
of participants from controlling the arrangement alone.
Joint control refers to the common control over an arrangement according to relevant agreements,
and the relevant activities of the arrangement must be agreed by the participants sharing the control
right before making decisions.
There are two types of joint arrangements - joint operations and joint ventures. The classification is
based on the rights and obligations of the parties under the joint venture arrangement, taking into
account factors such as the structure, legal form and contractual terms of the arrangement. A joint
operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is
a joint arrangement whereby the parties that have joint control of the arrangement have rights to the
net assets of the arrangement.
The Group accounts for investments in joint ventures using equity method. Refer to Note (IV)
- 23 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
When a group entity undertakes its activities under joint operations, the Group as a joint operator
recognises in relation to its interest in a joint operation: - its assets, including its share of any assets
held jointly; its liabilities, including its share of any liabilities incurred jointly; its revenue from the
sale of its share of the output arising from the joint operation; its share of the revenue from the sale
of the output by the joint operation, and its expenses, including its share of any expenses incurred
jointly. The Group accounts for the assets, liabilities, revenues and expenses relating to its interest
in a joint operation in accordance with the accounting standards applicable to the particular assets,
liabilities, revenues and expenses.
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents are the Group's short-term (generally due within 3 months since the acquisition date),
highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
The Group recognises a financial asset or a financial liability when it becomes a party to the
contractual provisions of the financial instrument.
For financial assets purchased or sold in regular ways, assets to be received and liabilities to be
assumed are recognised on the transaction date or assets sold are derecognised on that date.
Financial assets and financial liabilities are initially measured at fair value (the method for
determining the fair values of the financial assets and financial liabilities is set out in related
disclosures under "basis of accounting and principle of measurement" in Note (IV) 4. For financial
assets and financial liabilities at fair value through profit or loss, transaction costs are immediately
recognised in profit or loss. For other financial assets and financial liabilities, transaction costs are
included in their initial recognised amounts. Upon initial recognition of contract assets, bills
receivable and accounts receivable that do not contain significant financing component or without
considering the financing component included in the contract with a term not exceeding one year
under the Accounting Standards for Business Enterprises No. 14 - Revenue (hereinafter referred to
as "Revenue Standards"), the Group adopts the transaction price as defined in the Revenue
Standards for initial measurement.
When there is a difference between the fair value of financial assets or financial liabilities initially
recognised and the transaction price, if the fair value is not determined based on the quotation of
the same assets or liabilities in the active market or based on the valuation technology only using
observable market data, no gains or losses will be recognised when the financial assets or financial
liabilities are initially recognised.
- 24 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The effective interest method is a method of calculating the amortised cost of a financial asset or a
financial liability and of allocating the interest income or interest expenses over the relevant
accounting periods.
The effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability to the book value of the financial asset or to
the amortised cost of the financial liability. When calculating the effective interest rate, the Group
estimates future cash flows considering all contractual terms of the financial asset or financial
liability (such as repayment in advance, extension, call option or other similar options etc.) (without
considering the expected credit losses).
The amortised cost of a financial asset or a financial liability is the amount of a financial asset or a
financial liability initially recognised net of principal repaid, plus or less the cumulative amortised
amount arising from amortisation of the difference between the amount initially recognised and the
amount at the maturity date using the effective interest method, net of cumulative credit loss
allowance (only applicable to financial assets).
Subsequent to initial recognition, the Group's financial assets of various categories are subsequently
measured at amortised cost, at fair value through other comprehensive income or at fair value
through profit or loss.
If the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding, and the financial asset is
held within a business model whose objective is achieved by collecting contractual cash flows, the
Group classifies such financial asset as financial assets at amortised cost, which include cash and
bank balances, bills receivable, accounts receivable, other receivables, and long-term receivables
etc.
If the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding, and the financial asset is
held within a business model whose objective is achieved by both collecting contractual cash flows
and selling the financial asset, the Group classifies such financial asset as financial assets at
FVTOCI. The accounts receivable and bills receivable classified as at FVTOCI upon acquisition
are presented under receivables under financing, while the remaining items due within one year
(inclusive) upon acquisition are presented under other current assets. Other financial assets of such
type are presented as other debt investments if they are due after one year since the acquisition, or
presented under non-current assets due within one year if they are due within one year (inclusive)
since the balance sheet date.
- 25 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
On initial recognition, the Group may irrevocably designate non-trading equity instruments, other
than contingent consideration recognised through business combination not involving enterprises
under common control, as financial assets at FVTOCI on an individual basis. Such financial assets
at FVTOCI are presented as investments in other equity instruments.
A financial asset is classified as held for trading if one of the following conditions is satisfied:
• It has been acquired principally for the purpose of selling in the near term; or
• On initial recognition, it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or
• Related financial assets are derivatives. However, the derivatives meeting the definition of
financial guarantee contract and those designated as effective hedging instruments are
excluded.
Financial assets measured at fair value through profit or loss (hereinafter referred to as "FVTPL")
include those classified as financial assets at FVTPL and those designated as financial assets at
FVTPL.
• Financial assets not satisfying the criteria of classification as financial assets at amortised cost
and financial assets at FVTOCI are classified as financial assets at FVTPL.
• Upon initial recognition, the Group may irrevocably designate the financial assets at FVTPL
if doing so eliminates or significantly reduces accounting mismatch.
Financial assets at FVTPL other than derivative financial assets are presented as financial assets
held for trading. Financial assets with a maturity over one year since the balance sheet date (or
without a fixed maturity) and expected to be held for over one year are presented under other non-
current financial assets.
Financial assets measured at amortised cost are subsequently measured at amortised cost using the
effective interest method. Gain or loss arising from impairment or derecognition is recognised in
profit or loss.
- 26 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
For financial assets measured at amortised cost, the Group recognises interest income using
effective interest method. The Group calculates and recognises interest income through book value
of financial assets multiplying effective interest rate, except for the following circumstances:
• For purchased or originated credit-impaired financial assets, the Group calculates and
recognises the interest income based on amortised cost of the financial asset and the effective
interest rate through credit adjustment since initial recognition.
• For financial assets that have not suffered from credit impairment but have become credit
impairment in subsequent periods, the Group will calculate and determine their interest
income according to the amortised cost and effective interest rate of the financial assets in
subsequent periods. If the financial instruments no longer has credit impairment due to the
improvement of its credit risk in the subsequent period, and this improvement can be related
to an event that occurs after the application of the above provisions, the Group will calculate
and determine interest income by multiplying the actual interest rate by the book value of the
financial asset.
For financial assets classified as at FVTOCI, except for the impairment losses or gains and the
interest income and exchange losses or gains calculated using the effective interest method which
are included in profit or loss for the period, the changes in fair value are included in other
comprehensive income. The amounts included in profit or loss for each period are equivalent to that
as if the financial assets have been always measured at amortised cost. Upon derecognition, the
accumulated gains or losses previously included in other comprehensive income are transferred to
profit or loss for the period.
Changes in fair value of non-trading equity instrument investments designated as financial assets at
FVTOCI are recognised in other comprehensive income, and the cumulative gains or losses
previously recognised in other comprehensive income allocated to the part derecognised are
transferred and included in retained earnings. During the period in which the Group holds the non-
trading equity instruments, revenue from dividends is recognised in profit or loss for the current
period when (1) the Group has established the right of collecting dividends; (2) it is probable that
the associated economic benefits will flow to the Group; and (3) the amount of dividends can be
measured reliably.
- 27 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Financial assets at FVTPL are subsequently measured at fair value. Gain or loss arising from
changes in fair value and dividends and interest related to the financial assets are recognised in
profit or loss.
For financial assets at amortised cost, financial assets classified as at FVTOCI, lease receivables,
contract assets, loan commitments that are not financial liabilities at FVTPL, financial liabilities
that are not at FVTPL and financial guarantee contracts that are not qualified for derecognition due
to the transfer of financial assets or financial liabilities arising from continuing involvement of the
transferred financial assets, the Group accounts for the impairment and recognises the provision for
losses on the basis of expected credit loss (hereinafter referred to as "ECL").
For all contract assets, bills receivable and accounts receivable arising from transactions regulated
by Revenue Standards, and lease receivables arising from transactions regulated by the Accounting
Standards for Business Enterprises No. 21 - Leases, the Group recognises the provision for losses
at an amount equivalent to lifetime ECL.
For other financial instruments (other than purchased or originated credit-impaired financial assets),
the Group assesses the changes in credit risk since initial recognition of relevant financial
instruments at each balance sheet date. If the credit risk has increased significantly since initial
recognition of the financial instruments, the Group recognises the provision for losses at an amount
equivalent to lifetime ECL; if the credit risk has not increased significantly since initial recognition
of the financial instruments, the Group recognises the provision for losses at an amount equivalent
to 12-month ECL. The increase or reversal of credit impairment for financial assets other than those
classified as at FVTOCI is recognised as impairment loss or gain and included in profit or loss for
the period. For financial assets classified as at FVTOCI, the provision for bad debts is recognised
in other comprehensive income and the impairment loss or gain is included in profit or loss for the
period without reducing the carrying amount of the financial assets in the balance sheet.
Where the Group has measured the provision for losses at an amount equivalent to lifetime ECL of
a financial instrument in prior accounting period, but the financial instrument no longer satisfies the
criteria of significant increase in credit risk since initial recognition at the current balance sheet date,
the Group recognises the provision for losses of the financial instrument at an amount equivalent to
recognised as impairment gains in profit or loss for the period.
- 28 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group uses reasonable and supportable forward-looking information to assess whether the
credit risk has increased significantly since initial recognition by comparing the risk of a default
occurring on the financial instrument at the balance sheet date with the risk of a default occurring
on the financial instrument at the date of initial recognition. For loan commitments and financial
guarantee contracts, the date on which the Group becomes a party to the irrevocable commitment
is considered to be the date of initial recognition in the application of criteria related to the financial
instrument for impairment.
In particular, the following information is taken into account when assessing whether credit risk has
increased significantly:
(1) Significant changes in internal price indicators resulting from changes in credit risk;
(2) Significant changes in the rates or other terms of an existing financial instrument if the
instrument was newly originated or issued at the balance sheet date (such as more stringent
covenants, increased amounts of collateral or guarantees, or higher rate of return, etc.);
(3) Significant changes in the external market indicators of credit risk of the same financial
instrument or similar financial instruments with the same expected duration. These
indicators include: credit spreads, credit default swap prices against borrower, length of time
and extent to which the fair value of financial assets is less than their amortised cost, and
other market information related to the borrower (such as the borrower's debt instruments
or changes in the price of equity instruments);
(4) An actual or expected significant change in the financial instrument's external credit rating;
(5) An actual or expected decrease in the internal credit rating for the debtor;
(6) Adverse changes in business, financial or economic conditions that are expected to cause a
significant decrease in the debtor's ability to meet its debt obligations;
(7) An actual or expected significant change in the operating results of the debtor;
(8) Significant increase in credit risk of other financial instruments issued by the same debtor;
(9) Significant adverse changes in the regulatory, economic, or technological environment of
the debtor;
(10) Significant changes in the value of the collaterals or the quality of guarantees or credit
enhancements provided by third parties, which are expected to reduce the debtor's economic
motives to repay within the time limit specified in contract or affect the probability of default;
(11) Significant change in the debtor's economic motives to repay within the time limit specified
in contract;
(12) Expected changes to loan contract, including the exemption or revision of contractual
obligations, the granting of interest-free periods, the jump in interest rates, the requirement
for additional collateral or guarantees, or other changes in the contractual framework for
financial instruments that may result from the breach of contract;
- 29 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
(13) Significant change in the expected performance and repayment of the debtor;
(14) Significant change in the method used by the Group to manage the credit of financial
instruments.
The Group assumes that the credit risk on a financial instrument has not increased significantly
since initial recognition if the financial instrument is determined to have lower credit risk at the
balance sheet date. A financial instrument is determined to have lower credit risk if: i) it has a lower
risk of default, ii) the borrower has a strong capacity to meet its contractual cash flow obligations
in the near term and iii) adverse changes in economic and business conditions in the longer term
may, but will not necessarily, reduce the ability of the borrower to fulfil its contractual cash flow
obligations.
When an event or several events that are expected to have adverse impact on the future cash flows
of the financial assets have occurred, the financial assets become credit-impaired. The evidences of
credit impairment of financial assets include the following observable information:
(1) Significant financial difficulty of the issuer or debtor.
(2) A breach of contract by the debtor, such as a default or delinquency in interest or principal
payments.
(3) The creditor, for economic or legal reasons relating to the debtor's financial difficulty,
granting a concession to the debtor.
(4) It becomes probable that the debtor will enter bankruptcy or other financial reorganizations.
(5) The disappearance of an active market for the financial asset because of financial difficulties
of the issuer or the debtor.
(6) Purchase or origination of a financial asset with a large scale of discount, which reflects the
fact of credit loss.
Based on the Group's internal credit risk management, the Group considers an event of default
occurs when information developed internally or obtained from external sources indicates that the
debtor is unlikely to pay its creditors, including the Group, in full (without taking into account any
collaterals held by the Group).
- 30 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group determines the credit loss of leases receivables on the basis of single assets, and
determines the credit loss of related financial instruments on the basis of combination of cash at
bank and on hand, bills receivable, accounts receivable, other receivables, long-term receivables,
etc. with impairment matrix. The Group divides financial instruments into different groups based
on common risk characteristics. Common credit risk characteristics adopted by the Group include:
type of financial instruments, credit risk rating, type of collateral, initial recognition date, remaining
contract period, industry of the debtor, geographical location of the debtor, value of collateral
relative to financial assets, etc.
The Group determines the ECL of relevant financial instruments using the following methods:
• For financial assets, the credit loss is the present value of the difference between the
contractual cash flows that are due to the Group under the contract and the cash flows that the
Group expects to receive;
• For financial guarantee contracts (refer to Note (IV) 11.4.1.3 for the detail of accounting
policies), the credit loss is the present value of the expected payments to reimburse the holder
for the credit loss incurred less any amounts that the Group expects to receive from the holder,
the debtor or any other party.
• For financial assets credit-impaired at the balance sheet date, but not purchased or originated
credit-impaired, the credit loss is the difference between the book value of the financial assets
and the present value of estimated future cash flows discounted at the original effective
interest rate.
The factors reflected by the Group's measurement of ECL of financial instruments include: unbiased
probability weighted average amount recognised by assessing a series of possible results; time value
of money; reasonable and supportable information related to historical events, current condition
and forecast of future economic position that is available without undue cost or effort at the balance
sheet date.
When the Group no longer reasonably expects that the contractual cash flows of financial assets
can be collected in aggregate or in part, the Group will directly write down the book value of the
financial assets, which constitutes derecognition of relevant financial assets.
- 31 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group will derecognise a financial asset if one of the following conditions is satisfied: (i) the
contractual rights to the cash flows from the financial asset expire; (ii) the financial asset has been
transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (iii) although the financial asset has been transferred, the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset, and it retains control of the financial asset, the Group will recognise the financial
asset to the extent of its continuing involvement in the transferred financial asset and recognise an
associated liability. The Group will measure relevant liabilities as follows:
• For transferred financial assets carried at amortised cost, the carrying amount of relevant
liabilities is the carrying amount of financial assets transferred with continuing involvement
less amortised cost of the Group's retained rights (if the Group retains relevant rights upon
transfer of financial assets) with addition of amortised cost of obligations assumed by the
Group (if the Group assumes relevant obligations upon transfer of financial assets). Relevant
liabilities are not designated as financial liabilities at fair value through profit or loss.
• For transferred financial assets carried at fair value, the carrying amount of relevant liabilities
is the carrying amount of financial assets transferred with continuing involvement less fair
value of the Group's retained rights (if the Group retains relevant rights upon transfer of
financial assets) with addition of fair value of obligations assumed by the Group (if the Group
assumes relevant obligations upon transfer of financial assets). Accordingly, the fair value of
relevant rights and obligations shall be measured on an individual basis.
For the transfer of a financial asset in its entirety that satisfies the derecognition criteria, the
difference between (1) the carrying amount of the financial asset transferred and (2) the sum of the
consideration received from the transfer and any cumulative gain or loss that has been recognised
in other comprehensive income, is recognised in profit or loss. Where the transferred assets are non-
trading equity instrument investments designated as at FVTOCI, cumulative gains or losses
previously recognised in other comprehensive income are transferred out and included in retained
earnings.
- 32 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
If a part of the transferred financial asset qualifies for derecognition, the overall carrying amount of
the financial asset prior to transfer is allocated between the part that continues to be recognised and
the part that is derecognised, based on the respective fair value of those parts at the date of transfer.
The difference between (1) the carrying amount allocated to the part derecognised on the date of
derecognition; and (2) the sum of the consideration received for the part derecognised and any
cumulative gain or loss allocated to the part derecognised which has been previously recognised in
other comprehensive income, is recognised in profit or loss. Where the transferred assets are non-
trading equity instrument investments designated as at FVTOCI, cumulative gains or losses
previously recognised in other comprehensive income are transferred out and included in retained
earnings.
For a transfer of a financial asset in its entirety that does not satisfy the derecognition criteria, the
Group continues to recognise the transferred financial asset in its entirety. The consideration
received from transfer of assets is recognised as a financial liability upon receipt.
Financial instruments issued by the Group or their components are classified into financial liabilities
or equity instruments on the basis of the substance of the contractual arrangements and the economic
nature not only the legal form, together with the definition of financial liability and equity
instrument on initial recognition.
On initial recognition, financial liabilities are classified into financial liabilities at FVTPL and other
financial liabilities.
Financial liabilities at FVTPL consist of financial liabilities held for trading (including derivatives
classified as financial liabilities) and those designated as at FVTPL. Except for derivative financial
liabilities presented separately, the financial liabilities at FVTPL are presented as held-for-trading
financial liabilities.
A financial liability is classified as held for trading if one of the following conditions is satisfied:
• It has been acquired principally for the purpose of repurchasing in the near term; or
• On initial recognition, it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or
• It is a derivative that is not a financial guarantee contract or designated and effective as a
hedging instrument.
- 33 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
A financial liability may be designated as at FVTPL on initial recognition when one of the following
conditions is satisfied: (i) Such designation eliminates or significantly reduces accounting mismatch;
or (ii) The Group makes management and performance evaluation on a fair value basis, in
accordance with the Group's formally documented risk management or investment strategy, and
reports to key management personnel on that basis. (iii) The qualified hybrid financial instrument
combines financial asset with embedded derivatives.
Held-for-trading financial liabilities are subsequently measured at fair value. Any gains or losses
arising from changes in fair value and any dividends or interest expenses paid on the financial
liabilities are recognised in profit or loss.
For a financial liability designated as at FVTPL, the amount of changes in fair value of the financial
liability that are attributable to changes in the credit risk of that liability shall be presented in other
comprehensive income, while other changes in fair value are included in profit or loss for the current
period. Upon the derecognition of such financial liability, the accumulated amount of changes in
fair value that are attributable to changes in the credit risk of that liability, which was recognised in
other comprehensive income, is transferred to retained earnings. Any dividend or interest expense
on the financial liabilities is recognised in profit or loss. If the accounting treatment for the impact
of the change in credit risk of such financial liability in the above ways would create or enlarge an
accounting mismatch in profit or loss, the Group shall present all gains or losses on that liability
(including the effects of changes in the credit risk of that liability) in profit or loss for the period.
For financial liabilities arising from contingent consideration recognised by the Group as the
acquirer in the business combination not involving enterprises under common control, the Group
measures such financial liabilities at fair value through profit or loss, and includes the changes in
the financial liabilities in profit or loss for the period.
- 34 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Except for financial liabilities, financial guarantee contracts and loan commitments arising from
transfer of financial assets that do not meet the derecognition criteria or those arising from
continuing involvement in the transferred financial assets, other financial liabilities are
subsequently measured at amortised cost, with gain or loss arising from derecognition or
amortisation recognised in profit or loss.
If the modification or renegotiation for the contract by the Group and its counterparties does not
result in derecognition of a financial liability subsequently measured at amortised cost but the
changes in contractual cash flows, the Group will recalculate the carrying amount of the financial
liability, with relevant gain or loss recognised in profit or loss. The Group will determine the
carrying amount of the financial liability based on the present value of renegotiated or modified
contractual cash flows discounted at the original effective interest rate of the financial liability. For
all costs or expenses arising from modification or renegotiation of the contract, the Group will adjust
the modified carrying amount of the financial liability and make amortisation during the remaining
term of the modified financial liability.
A financial guarantee contract is a contract that requires the issuer to make specified payments to
reimburse the holder of the contract for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the original or modified terms of a debt instrument.
Subsequent to initial recognition, financial guarantee contracts that are not designated as financial
liabilities at fair value through profit or loss or financial liabilities arising from transfer of financial
assets that do not meet the derecognition criteria or those arising from continuing involvement in
the transferred financial assets, are measured at the higher of amount of loss provision; and the
amount initially recognised less cumulative amortisation amount determined based on the revenue
standards.
- 35 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group derecognises a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged. An agreement between the Group (the debtor) and the creditor to replace
the original financial liability with a new financial liability with substantially different terms is
accounted for as an extinguishment of the original financial liability and the recognition of a new
financial liability.
When the Group derecognises a financial liability or a part of it, it recognises the difference between
the carrying amount of the financial liability (or part of the financial liability) derecognised and the
consideration paid (including any non-cash assets transferred or new financial liabilities assumed)
in profit or loss.
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. Equity instruments issued (including refinanced), repurchased,
sold and cancelled by the Group are recognised as changes in equity. The Group's issuance of
equity instruments is recorded in the owner's equity at the actual issue price, and the relevant
transaction costs are deducted from the owner's equity (capital reserve). If the capital reserve is
insufficient to offset, the surplus reserve and retained earnings are offset in turn. The consideration
and transaction costs paid for repurchasing the Company's equity instruments reduce the owner's
equity.
The Group recognises the distribution to holders of the equity instruments as distribution of profits,
and dividends paid do not affect total amount of shareholders' equity.
- 36 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Derivatives include forward exchange contracts, currency swaps, interest rate swaps and foreign
exchange options, etc. Derivatives are initially measured at fair value at the date when the derivative
contracts are entered into and are subsequently measured at fair value.
Derivatives embedded in hybrid contracts with a financial asset host are not separated by the Group.
The hybrid contract shall apply the relevant accounting standards regarding the classification of
financial assets as a whole.
Derivatives embedded in hybrid contracts with hosts that are not financial assets are separated and
treated as separate derivatives by the Group when they meet the following conditions:
(1) the economic characteristics and risks of the embedded derivative are not closely related to
those of the host contract;
(2) a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative;
(3) the hybrid contracts are not measured at fair value through profit or loss.
For the embedded derivative separated from the host contracts, the Group accounts for the host
contracts in the hybrid contracts with applicable accounting standards. When the embedded
derivatives whose fair value cannot be measured reliably by the Group according to the terms and
conditions of the embedded derivatives, the fair value of such derivatives are measured at the
difference between the fair value of the hybrid contracts and the fair value of the host contracts. By
adopting the above method, if the embedded derivative cannot be measured on a stand-alone basis
at the time when it is acquired or at subsequent balance sheet dates, the hybrid instrument is
designated as financial instruments at fair value through profit or loss as a whole.
Where the Group has a legal right that is currently enforceable to set off the recognised financial
assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial
asset and settle the financial liability simultaneously, a financial asset and a financial liability shall
be offset and the net amount is presented in the balance sheet. Except for the above circumstances,
financial assets and financial liabilities shall be presented separately in the balance sheet and shall
not be offset.
For convertible bonds issued by the Group that contain both liabilities and conversion option that
may convert the liabilities to its own equity instrument, upon initial recognition, the bonds are split
into liabilities and conversion option which are separately recognised. Therein, the conversion
option that exchanges a fixed amount of cash or other financial assets for a fixed amount of equity
instruments is accounted for as an equity instrument.
- 37 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Upon initial recognition, the fair value of liability portion is determined based on the prevailing
market price of the bonds containing no conversion option. The overall issue price of the convertible
bonds net of the fair value of the liability portion is considered as the value of the conversion option
that enables the bonds holder to convert the bonds to equity instruments, and is included in other
equity instruments.
The liability portion of the convertible bonds is subsequently measured at amortised cost using
effective interest method; the value of the conversion option classified as equity instrument is
remained in equity instrument. The expiry or conversion of convertible bonds will not result in loss
or gain.
The transaction costs incurred for issuance of the convertible bonds are allocated between the
liability portion and equity instrument portion in proportion to their respective fair values. The
transaction cost relating to the equity instrument portion is directly included in equity instrument;
while the transaction cost relating to the liability portion is included in the carrying amount of the
liability, and amortised over the lifetime of the convertible bonds using effective interest method.
When the Group changes the business model to manage the financial assets, the financial assets
affected will be reclassified and no financial liabilities will be reclassified.
The financial assets are reclassified by the Group and are accounted for prospectively since the date
of reclassification (i.e., the first date of the initial reporting period after the business model of which
the financial assets are reclassified by the enterprise is changed).
Where a financial asset at amortised cost is reclassified as a financial asset at fair value through
profit or loss by (hereinafter referred to as "FVTPL") the Group, such financial asset is measured
at fair value at the date of reclassification and the difference between the original carrying amount
and the fair value is recognised in profit or loss for the period.
Where a financial asset at amortised cost is reclassified as a financial asset at fair value through
other comprehensive income (hereinafter referred to as "FVTOCI") by the Group, such financial
asset is measured at fair value at the date of reclassification, and the difference between the original
carrying amount and the fair value is recognised in other comprehensive income.
Where a financial asset at FVTOCI is reclassified as a financial asset at amortised cost by the Group,
the accumulated gains or losses previously recognised in other comprehensive income are
transferred out and the fair value at the date of reclassification is adjusted. The adjusted fair value
is determined as the new carrying amount, as if the financial asset has been always measured at
amortised cost. The reclassification of the financial asset shall not affect its effective interest rate
or the measurement of ECL.
- 38 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Where a financial asset at FVTOCI is reclassified as a financial asset at FVTPL by the Group, such
financial asset continues to be measured at fair value. At the same time, the accumulated gains or
losses previously recognised in other comprehensive income are transferred to profit or loss for the
period.
Where a financial asset at FVTPL is reclassified as a financial asset at amortised cost by the Group,
the fair value at the date of reclassification is determined as the new book value.
Where a financial asset at FVTPL is reclassified as a financial asset at FVTOCI by the Group, such
financial asset continues to be measured at fair value.
Where a financial asset at FVTPL is reclassified, the effective interest rate is determined on the
basis of the fair value of the financial asset at the date of reclassification.
The Group assesses the credit risk of receivables with significantly different credit risks on an
individual basis, and determine the credit losses of receivables on a portfolio basis using an
impairment matrix for other receivables. The amount of increase in or reversal of allowance for
expected credit losses on receivables is included in profit or loss for the period as credit losses or
gains.
according to credit risk characteristics and the basis for determination
The Group classifies receivables into groups A, B and C based on common risk characteristics. The
common credit risk characteristics adopted by the Group include: type of financial instrument,
credit risk rating, initial recognition date, remaining contractual term, industry of the debtor,
geographical location of the debtor, etc.
- 39 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
according to credit risk characteristics and the basis for determination - continued
The Group makes internal credit ratings on customers and determines expected loss rate of
receivables. Basis for determining ratings and the expected loss rates are as follows:
Internal credit Expected average
Basis for determining portfolio
rating loss rate (%)
Customers can make repayments within credit term and have good credit
A records based on historical experience. The probability of default on 0.00-0.10
payment of due amounts is extremely low in the foreseeable future.
The customers may have overdue payment based on historical experience
B 0.10-0.30
but they can make repayments.
The evidence indicates that the overdue credit risks of the customers are
C 0.30-50.00
significantly increased and there is probability of default on payment.
Internal credit Expected average
Basis to determine the provision for bad debts on an individual basis
ratings loss ratio (%)
There is evidence showing that the receivables from customers are
impaired, or that the customers are experiencing significant financial
D 50.00-100.00
difficulties and thus the receivables will be irrecoverable in the
foreseeable future.
system, amortisation method of low-value consumables and packaging materials
The Group's inventories mainly include raw materials, merchandise and others. Inventories are
initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion
and other expenditures incurred in bringing the inventories to their present location and condition.
- 40 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
system, amortisation method of low-value consumables and packaging materials -
continued
Cost of inventories recognised is calculated using the first-in-first-out and weighted average method
at the end of the month.
The perpetual inventory system is perpetual inventory system.
materials
Packaging materials and low cost and short-lived consumable items are amortised using the
immediate write-off method.
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If
the cost of inventories is higher than the net realizable value, a provision for decline in value of
inventories is made.
Net realizable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes.
Net realizable value is determined on the basis of clear evidence obtained, after taking into
consideration the purposes of inventories being held and effect of post balance sheet events.
Provision for decline in value of inventories is made based on the excess of cost of inventory over
its net realizable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previously
caused inventories to be written down below cost no longer exist so that the net realizable value of
inventories is higher than their cost, the original provision for decline in value is reversed and the
reversal is included in profit or loss for the period.
- 41 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Control means that the investor has the power over the investee, enjoys variable returns by
participating in the relevant activities of the investee, and has the ability to use the power over the
investee to affect its return amount. Joint control refers to the common control over an arrangement
according to relevant agreements, and the relevant activities of the arrangement must be agreed by
the participants sharing the control right before making decisions. Significant influence refers to
having the right to participate in the decision-making of the investee's financial and operating
policies, but not being able to control or jointly control the formulation of these policies with other
parties. When determining whether it is possible to control or exert significant influence on the
investee, the convertible corporate bonds, executable warrants and other potential voting rights of
the investee held by the investor and other parties have been considered.
For a long-term equity investment acquired through business combination involving enterprises
under common control, share of carrying amount of owners' equity of the acquiree in the
consolidated financial statements of ultimate controlling party is recognised as initial investment
cost of long-term equity investment at the date of combination. The difference between initial
investment cost of long-term equity investment and cash paid, non-cash assets transferred and
carrying amount of liabilities assumed, is adjusted in capital reserve. If the balance of capital reserve
is not sufficient to absorb the difference, surplus reserve and retained earnings shall be offset in
turn. If the consideration of the combination is satisfied by the issue of equity securities, the initial
investment cost of the long-term equity investment is the share of carrying amount of owners' equity
of the acquiree in the consolidated financial statements of ultimate controlling party at the date of
combination. The aggregate face value of the shares issued is accounted for as share capital. The
difference between the initial investment cost and the aggregate face value of the shares issued is
adjusted to capital reserve. If the balance of capital reserve is not sufficient to absorb the difference,
surplus reserve and retained earnings shall be offset in turn.
- 42 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
For a long-term equity investment acquired through business combination not involving enterprises
under common control, the initial investment cost of the long-term equity investment acquired is
the cost of acquisition.
The expenses incurred by the acquirer in respect of auditing, legal services, valuation and
consultancy services and other associated general and administrative expenses attributable to the
business combination are recognised in profit or loss when they are incurred.
The long-term equity investment acquired otherwise than through a business combination is initially
measured at its cost. When the entity is able to exercise significant influence or joint control (but
not control) over an investee due to additional investment, the cost of long-term equity investments
is the sum of the fair value of previously - held equity investments determined in accordance with
Accounting Standards for Business Enterprises No.22 - Financial Instruments: Recognition and
Measurement (ASBE No. 22) and the additional investment cost.
Long-term equity investments in subsidiaries are accounted for using the cost method in Company's
separate financial statements. A subsidiary is an investee that is controlled by the Group.
Under the cost method, a long-term equity investment is measured at initial investment cost. When
additional investment is made or the investment is recouped, the cost of the long-term equity
investment is adjusted accordingly. Investment income is recognised in the period in accordance
with the attributable share of cash dividends or profit distributions declared by the investee.
Except for investments in associates and joint ventures classified as held-for-sale partly or wholly,
the Group accounts for investment in associates and joint ventures using the equity method. An
associate is an entity over which the Group has significant influence and a joint venture is a joint
arrangement whereby the Group only has rights to the net assets of the arrangement.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds
the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition,
no adjustment is made to the initial investment cost. Where the initial investment cost is less than
the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition,
the difference is recognised in profit or loss for the period, and the cost of the long-term equity
investment is adjusted accordingly.
- 43 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Under the equity method, the Group recognises its share of the net profit or loss and other
comprehensive income of the investee for the period as investment income and other
comprehensive income for the period. Meanwhile, the carrying amount of long-term equity
investment is adjusted; the carrying amount of long-term equity investment is decreased in
accordance with its share of the investee's declared profit or cash dividends; other changes in
owners' equity of the investee other than net profit or loss, other comprehensive incomed and profit
distribution are correspondingly adjusted to the carrying amount of the long-term equity investment,
and recognised in capital reserve. The Group recognises its share of the investee's net profit or loss
based on the fair value of the investee's individual identifiable assets, etc. at the acquisition date
after making adjustments. When the investee's accounting policies and accounting period are
inconsistent with those of the Group, the Group recognises investment income and other
comprehensive income after making appropriate adjustments to conform to the Group's accounting
policies and accounting period. However, unrealized gains or losses resulting from the Group's
transactions with its associates and joint ventures and assets invested or sold, which do not
constitute a business, are eliminated based on the proportion attributable to the Group and then
investment gains or losses are recognised. However, unrealized losses resulting from the Group's
transactions with its associates and joint ventures which represent impairment losses on the
transferred assets are not eliminated.
When recognising the net loss of the investee that should be shared, the book value of the long-term
equity investments and other long-term interests that substantially constitute the net investment in
the investee should be written down to zero. In addition, if the Group has incurred obligations to
assume additional losses, a provision is recognised according to the obligation expected, and
recorded in the investment loss for the period. Where net profits are subsequently made by the
investee, the Group resumes recognising its share of those profits only after its share of the profits
exceeds the share of losses previously not recognised.
- 44 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
On disposal of a long-term equity investment, the difference between the proceeds actually received
and receivable and the carrying amount is recognised in profit or loss for the period. For long-term
equity investments accounted for using the equity method, if the remaining interest after disposal
is still accounted for using the equity method, other comprehensive income previously recognised
using the equity method is accounted for on the same basis as would have been required if the
investee had directly disposed of related assets or liabilities, and transferred to profit or loss for the
period on a pro rata basis; owners' equity recognised due to other changes in owners' equity of the
investee (other than net profit or loss, other comprehensive income and profit distribution) is
transferred to profit or loss for the period on a pro rata basis. For long-term equity investments
accounted for using the cost method, if the remaining interest after disposal is still accounted for
using the cost method, other comprehensive income previously recognised using the equity method
or in accordance with the standards for the recognition and measurement of financial instruments
before obtaining the control over the investee, is accounted for on the same basis as would have
been required if the investee had directly disposed of related assets or liabilities, and transferred to
profit or loss for the period on a pro rata basis; other changes in owners' equity in the investee's net
assets recognised under the equity method (other than net profit or loss, other comprehensive
income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.
Where the Group loses control over the investee due to disposal of part of shares, and in preparing
the separate financial statements, remaining shares after disposal can have joint control or
significant influence over the investee, the equity method shall be adopted to adjust the remaining
shares as they are accounted for under equity method since the acquisition date. If remaining shares
after disposal cannot have joint control or significant influence over the investee, they are accounted
for in accordance with the standards for recognition and measurement of financial instruments, and
the difference between fair value on date of losing control and carrying amount is recognised in
profit or loss for the period. Other comprehensive income recognised using the equity method or in
accordance with the standards for the recognition and measurement of financial instruments before
obtaining control over the investee, is accounted for on the same basis as would have been required
if the investee had directly disposed of related assets or liabilities when the control over the investee
is lost; other changes in owners' equity in the investee's net assets recognised under the equity
method (other than net profit or loss, other comprehensive income and profit distribution) is
transferred to profit or loss for the period. Where remaining shares after disposal are accounted for
under equity method, other comprehensive income and other owners' equity are transferred on a
pro rata basis. Where remaining shares after disposal are accounted for in accordance with the
standards for recognition and measurement of financial instruments, other comprehensive income
and other owners' equity are all transferred.
- 45 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Where the Group loses joint control or significant influence over the investee after part disposal of
shares, remaining shares after disposal are accounted for in accordance with the standards for
recognition and measurement of financial instruments, and the difference between fair value at the
date of losing joint control or significant influence and carrying amount is recognised in profit or
loss for the period. Other comprehensive income previously recognised under the equity method,
is accounted for on the same basis as would have been required if the investee had directly disposed
of related assets or liabilities when the equity method is not adopted, and other changes in owners'
equity other than net profit or loss, other comprehensive income and profit distribution are
transferred to investment income for the period when the equity method is not adopted.
The Group disposes of its equity investment in subsidiaries through multiple transactions step by
step until it loses control over the subsidiaries. If these transactions belong to "package deal", all
transactions are deemed as one transaction on disposal of equity investment in subsidiaries, and the
difference between the amount of disposal and carrying amount of long-term equity investment is
recognised as other comprehensive income before the loss of control, and transferred to profit or
loss for the period when the control is lost.
Investment property is the property held by the Group to earn rentals or for capital appreciation or
both. It includes a land use right that is leased out and a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such
investment property are included in the cost of the investment property if it is probable that
economic benefits associated with the investment property will flow to the Group and the
subsequent expenditures can be measured reliably. Other subsequent expenditures are recognised
in profit or loss for the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment property, and the
investment properties are depreciated over their useful lives using the straight-line method. The
depreciation life, estimated residual value rate and annual depreciation rate of each category of
investment properties are as follows:
Annual depreciation rate
Category Depreciation life (year) Residual value rate (%)
(%)
Land use rights 21.25-50.00 - 2.00-4.71
Buildings and structures 10.00-43.17 5.00 2.20-9.50
An investment property is derecognised upon disposal or when the investment property is
permanently withdrawn from use and it is estimated that no economic benefits can be obtained from
its disposal, the investment properties is derecognised.
- 46 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
When an investment property is sold, transferred, retired or damaged, the Group recognises the
amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss
for the period.
Fixed assets are tangible assets that are held for use in the production or supply of goods or services,
for rental to others, or for administrative purposes, and have useful lives of more than one
accounting year. A fixed asset is recognised only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.
Fixed assets are initially measured at cost, taking into account the impact of abandonment cost.
Upon being restructured into a stock company, the fixed assets initially contributed by the state-
owned shareholders are recognised based on the valuation amounts confirmed by the state-owned
assets administration department.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset if it
is probable that economic benefits associated with the asset will flow to the Group and the
subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced
part is derecognised. Other subsequent expenditures are recognised in profit or loss for the period
in which they are incurred.
A fixed asset is depreciated over its useful life using the straight-line method starting from the
month subsequent to the one in which it is ready for intended use. The depreciation life, estimated
net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
Depreciation life Residual value Annual
Category
(year) rate (%) depreciation rate (%)
Port and terminal facilities 5-50 5.00 1.90-19.00
Buildings and structures 5-30 5.00 3.17-19.00
Machinery and equipment, furniture
and fixture and other equipment
Motor vehicles and cargo ships 5-25 5.00 3.80-19.00
Estimated net residual value of a fixed asset is the estimated amount that the Group would currently
obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were
already of the age and in the condition expected at the end of its useful life.
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from
its use or disposal, the fixed asset is derecognised. When a fixed asset is sold, transferred, retired or
damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and related
taxes is recognised in profit or loss for the period.
- 47 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least once at each financial year-end, and accounts for any change
as a change in accounting estimates.
Construction in progress is measured at its actual costs. The actual costs include various
construction expenditures during the construction period, borrowing costs capitalized before it is
ready for intended use and other relevant costs. Construction in progress is not depreciated.
Construction in progress is accounted for by categories of projects initiated, and is transferred to a
fixed asset when it is ready for intended use. The criteria for judging the intended use shall be one
of the following:
(1) The physical construction (including installation) of fixed assets has been fully or
substantially completed;
(2) The trial production or trial operation has been carried out and the results of which indicate
that the asset is capable of normal operation or producing qualified products on a stable
basis, or the results of which indicate that it is capable of normal functioning or operation;
(3) The fixed assets and intangible assets acquired and constructed have met the design or
contractual requirements or are basically in compliance with the design or contractual
requirements.
- 48 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Intangible assets include land use rights, terminal operating rights, data resources and others.
An intangible asset is measured initially at cost. Upon being restructured into a stock company, the
intangible assets initially contributed by the state-owned shareholders are recognised based on the
valuation amounts confirmed by the state-owned assets administration department. Except for
terminal operating rights, when an intangible asset with a finite useful life is available for use, its
original cost minus the expected net residual value and the accumulated amount of impairment
provision is amortised over its estimated useful life by using straight-line method. The terminal
operating rights under the output method are amortised over periods according to the ratio of the
estimated minimum guaranteed throughput to the estimated minimum guaranteed total throughput
during the operation period. When the estimated minimum guaranteed throughput cannot be
measured reliably, the straight-line method will be used for amortisation. An intangible asset with
indefinite useful life will not be amortised.
The amortisation method, useful life and estimated net residual value rate of each category of
intangible assets are as follows:
Category Amortisation method Useful life (year) and recognition Residual value (%)
From the date of the land transfer, it
Land use rights Straight-line method is amortised using the straight-line -
method over the land transfer period
Output method - it is amortised over
periods according to the ratio of the
estimated minimum guaranteed
throughput to the estimated
minimum guaranteed total
Terminal operating
Output/Straight-line method throughput; straight-line method - it -
right
is amortised using the straight-line
method over the shortest of the
estimated useful life, the beneficial
period specified in the contract and
the effective life as defined by law
It is amortised using the straight-
line method over the shortest of the
Data resources and
Straight-line method estimated useful life, the beneficial -
others
period specified in the contract and
the effective life as defined by law
For an intangible asset with a finite useful life, the Group reviews the useful life and amortisation
method at the end of the year, and makes adjustments when necessary.
- 49 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Expenditure during the research phase is recognised in profit or loss for the period in which it is
incurred.
Expenditure during the development phase that meets all of the following conditions at the same
time is recognised as intangible asset. Expenditure during development phase that does not meet
the following conditions is recognised in profit or loss for the period:
(1) it is technically feasible to complete the intangible asset so that it will be available for use
or sale.
(2) the Group has the intention to complete the intangible asset and use or sell it.
(3) the Group can demonstrate the ways in which the intangible asset will generate economic
benefits, including the evidence of the existence of a market for the output of the intangible
asset or the intangible asset itself or, if it is to be used internally, the usefulness of the
intangible asset.
(4) the availability of adequate technical, financial and other resources to complete the
development and the ability to use or sell the intangible asset.
(5) the expenditure attributable to the intangible asset during its development phase can be
reliably measured.
If the expenditures cannot be distinguished between the research phase and development phase, the
Group recognises all of them in profit or loss for the year. The costs of intangible assets generated
by the internal research only include the total expenditure incurred for the period from the time
point of capitalization to the time point when the intangible assets are ready for intended use. For
the identical intangible asset, the expenditures recorded as expenses before they qualify for
capitalization during the development process are not adjusted.
The Group classifies the expenditures on an internal research and development project into
expenditures in the research phase and expenditures in the development phase. The scope of R&D
expenditures refer to those directly related to the R&D activities, including wages, salaries, and
welfare expenses of personnel directly engaged in R&D activities, materials directly consumed in
R&D activities, depreciation expenses for instruments and equipment used in R&D activities, travel,
transportation, and communication expenses required for research and experimental development,
etc. Technical feasibility and economic viability studies are adopted as specific criteria for
classifying the research and development phases once such studies have been evaluated and
approved.
- 50 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Long-term deferred expenses refer to various expenses that have been incurred but should be borne
in the current and subsequent periods with an apportionment period of more than one year. Long-
term deferred expenses are amortised using the straight-line method over the expected periods in
which benefits are derived.
On each balance sheet date, the Group checks whether there is any sign of possible impairment of
long-term equity investments, investment properties measured by cost model, fixed assets,
construction in progress, right-of-use assets, long-term deferred expenses, and intangible assets
whose service life is determined. If there is any indication that such assets may be impaired,
recoverable amounts are estimated for such assets. Intangible assets with indefinite useful life and
intangible assets not yet available for use are tested for impairment annually, irrespective of whether
there is any indication that the assets may be impaired.
Recoverable amount is estimated on an individual basis. If it is not practical to estimate the
recoverable amount of an individual asset, the recoverable amount of the asset group to which the
asset belongs will be estimated. The recoverable amount of an asset or assets group is the higher of
its fair value less costs of disposal and the present value of the future cash flows expected to be
derived from the asset.
The present value of the estimated future cash flow of the assets is determined according to the
estimated future cash flow generated during the continuous use and final disposal of the assets, and
the amount discounted which is determined by selecting an appropriate pre tax discount rate.
If the recoverable amount of an asset is less than its carrying amount, the deficit is accounted for as
an impairment losses and is recognised in profit or loss.
Once the impairment losses of above-mentioned assets is recognised, it shall not be reversed in any
subsequent period.
When determining the impairment losses of assets related to contract costs, first determine the
impairment losses of other assets related to contracts that are recognised in accordance with other
relevant accounting standards for business enterprises; Then, if the book value of the assets related
to the contract costs is higher than the difference between the following two items, the excess part
of the provision for impairment shall be recognised as impairment losses: (i) the Group's expected
remaining consideration for the transfer of goods or services related to the assets; (ii) Estimate the
cost to be incurred for the transfer of the relevant goods or services.
- 51 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Except for the impairment losses related to the contract costs, once the above impairment losses is
recognised, it will not be reversed in future accounting periods. After the provision for impairment
of assets related to contract costs has been made, if the factors of impairment in previous periods
have changed resulting in the above two differences are higher than the book value of the assets,
the provision for impairment of the assets that has been made is reversed and included in the current
profits and losses, but the book value of the assets after reversal does not exceed the book value of
the assets on the reversal date assuming that no provision for impairment is made.
Provisions are recognised when the Group has a present obligation related to a contingency, it is
probable result in an outflow of economic benefits to settle the obligation, and the amount of the
obligation can be measured reliably.
The amount recognised as a provision is the best estimate of the consideration required to settle the
present obligation at the balance sheet date, taking into account factors pertaining to a contingency
such as the risks, uncertainties and time value of money. Where the effect of the time value of money
is material, the amount of the provision is determined by discounting the related future cash
outflows.
If all or part of the expenses required to settle the estimated liabilities are expected to be
compensated by a third party, the compensation amount will be separately recognised as assets
when it is basically determined that it can be received, and the recognised compensation amount
will not exceed the book value of the estimated liabilities.
Employee benefits refers to various forms of 'remuneration' or compensation provided by the Group
for the services provided by employees or the termination of labor relations. Employee benefits
includes short-term compensation, post employment benefit, termination benefits and other long-
term employee benefits.
Except for compensation for termination of labor relationship with employees, the Group
recognises employee benefits payable as liability during the accounting period when employees
provide services.
- 52 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group shall participate in the employee social security system established by government
agencies in accordance with regulations, including basic endowment insurance, medical insurance,
housing provident fund and other social security systems, and the corresponding expenses shall be
included in relevant asset costs or current 'profit and loss' when incurred.
Short-term benefits refer to the employee benefits that the Group is required to make full payments
within 12 months after the annual reporting period during which relevant services are provided by
the employees, except the post-employment benefits and termination benefits. Specifically, the
short-term benefits include: employee salaries, bonuses, allowances and subsidies, employee
benefits, social insurance contributions such as the medical insurance and the work injury insurance,
housing funds, trade union funds and employee education funds, short-term paid absence, short-
term profit sharing plan, non-monetary welfare and other short-term benefits.
Short-term employee benefits payable are recognised as liabilities, with a corresponding charge to
profit or loss for the period or in the costs of relevant assets according to the beneficiaries of services
provided by employees in the accounting period in which employees provide services to the Group.
Staff welfare expenses incurred by the Group are recognised in profit or loss for the period or the
costs of relevant assets based on the actually occurred amounts when they actually occurred. Non-
monetary staff welfare expenses are measured at fair value.
Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance, work injury insurance and maternity insurance, etc. and
payments of housing funds, as well as union running costs and employee education costs provided
in accordance with relevant requirements, are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognised as relevant liabilities,
with a corresponding charge to profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
- 53 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Post-employment benefits refer to the rewards and benefits of various forms provided by the Group
after the employees have retired or terminated the labor relationship with the enterprise for the
services rendered by the employees, except the short-term benefits and the termination benefits.
The post-employment benefits consist of the pension insurance, the annuity, the unemployment
insurance and other post-employment benefits.
Post-employment benefit plans are classified by the Group into defined contribution plans and
defined benefit plans. The post-employment benefit plan refers to the agreements the Group entered
into with the employees on the post-employment benefits or the regulations or measures established
by the Group for provisions of the post-employee benefits, among which the defined contribution
plans refer to the post-employment benefit plan under which the Group shall no longer undertake
any obligations of payments after paying fixed expenses to independent funds; the defined benefit
plans refer to the post-employment benefit plans other than the defined contribution plans. During
the accounting period in which employees render services to the Group, the amounts payable
calculated based on the defined contribution plans are recognised as liabilities and included in profit
or loss for the period or costs of related assets.
For defined benefit plans, the Group attributes the welfare obligations arising from the defined
benefit plans to the period in which employees provide services to the Group according to the
formula determined based on the projected cumulative benefit unit method, and includes them in
profit or loss for the period or costs of related assets. Defined benefit costs are categorized as follows:
• Service cost (including current service cost, past service cost, as well as gains and losses on
settlements);
• Net interest of net liabilities or assets of defined benefit plans (including interest income of
planned assets, interest expenses of defined benefit plan liabilities and effect of asset ceiling);
and
• Changes arising from remeasurement of net liabilities or net assets of defined benefit plans.
- 54 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Service costs and net interest of net liabilities and net assets of defined benefit plans are recognised
in profit or loss for the period or costs of related assets. Remeasurement of the net defined benefit
liabilities (assets) (including actuarial gains and losses, the return on planned assets, excluding
amounts included in net interest on net defined benefit liabilities (assets), and any changes in the
effect of the asset ceiling, excluding amounts included in net interest on net defined benefit
liabilities (assets)) are recognised in other comprehensive income.
The deficit or surplus resulting from the present value of the defined benefit plan obligations less
the fair value of the defined benefit plan assets is recognised as a net defined benefit plan liability
or net asset.
Termination benefits refer to the compensations the Group pay to the employees for terminating the
employment relationship with employees before the expiry of the employment contracts or
encouraging employees to accept voluntary redundancy. When the Group provides termination
benefits to employees, employee benefit liabilities are recognised for termination benefits, with a
corresponding charge to profit or loss for the period at the earlier of: (1) when the Group cannot
unilaterally withdraw the offer of termination benefits because of the termination plan or a
curtailment proposal; and (2) when the Group has a detailed and formal restructuring plan involving
the payment of dismissal benefit; In addition, the restructuring plan has been implemented or the
main contents of the plan have been notified to the affected parties, so that all parties have formed
a reasonable expectation that the Group will implement the restructuring.
Other long-term employee benefits refer to all employee benefits except for short-term benefits,
post-employment benefits, and termination benefits.
Other long-term employee benefits that qualify as defined contribution plans are treated in
accordance with the relevant provisions of the defined contribution plans mentioned above, except
that the net liability or net asset for other long-term employee benefits is recognised and measured
in accordance with the relevant provisions of the defined benefit plans. At the end of the reporting
period, employee compensation costs arising from other long-term employee benefits are
recognised as three components: service cost, net interest on net liability or net asset for other long-
term employee benefits, and changes resulting from the remeasurement of the net liability or net
asset for other long-term employee benefits. The total net amount of these items is included in profit
or loss for the period or in the costs of related assets.
- 55 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group provides internal retirement benefits to employees accepting the internal retirement
arrangements. Internal retirement benefits refer to the payments of salaries and social security
contributions for employees who have not reached the retirement age regulated by the country and
are approved to quit the job voluntarily. For internal retirement benefits, the internal retirement
benefits the Group is expected to pay during the period from the date when employees stop
providing services to the date of normal retirement are recognised as liabilities at the present value
and included in profit or loss for the period when relevant recognition requirements of the internal
retirement benefits are met.
A share-based payment is a transaction which the Group grants equity instruments, in return for
services rendered by employees or other parties. The Group's share-based payments include equity-
settled share-based payments.
Equity-settled share-based payments in exchange for services rendered by employees are measured
at fair value of the equity instruments granted to employees at the grant date. Such amount is
recognised as related costs or expenses on a straight-line basis over the vesting period, based on the
best estimate of the number of equity instruments expected to vest/ as related costs or expenses at
the grant date, if the equity instruments could be vested immediately, with a corresponding increase
in capital reserve.
The Group's bonds payable are measured at fair value when initially recognised, and relevant
transaction costs are included in the initially recognised amount. It is subsequently measured at
amortised cost.
The difference between the bond issue price and the total face value of the bonds is regarded as the
bond premium or discount, which is amortised at the time of interest accrual according to the
effective interest method during the duration of the bonds, and is treated according to the principle
of handling borrowing costs.
The actual issue price for the issuance of equity instruments is included in shareholders' equity after
deducting relevant transaction costs from shareholders’ equity (capital reserve). If the capital
reserve is insufficient to offset, surplus reserve and retained earnings will be offset in turn. The
consideration and transaction costs paid for repurchasing the Group's equity instruments reduce
shareholders’ equity.
- 56 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group classifies financial instruments, or their components, as financial liabilities or equity
instruments at initial recognition based on the contractual terms of the issued perpetual bonds and
their reflected economic substance, combined with the definitions of financial liabilities and equity
instruments.
For financial instruments such as perpetual bonds classified as equity instruments, interest expense
or dividend (dividend) distributions are treated as profit distributions of the Group, and their
repurchases, write-offs, etc., are treated as changes in equity, and related transaction costs are
deducted from equity.
of business
Revenue refers to the total inflow of economic benefits formed in the daily activities of the Group,
which will lead to the increase of owner's equity and has nothing to do with the capital invested by
owners. The Group's revenue is mainly from port business, bonded logistics business and other
businesses.
The Group recognises revenue based on the transaction price allocated to the performance
obligation when the Group satisfies a performance obligation in the contract, namely, when the
customer obtains control over relevant goods or services. A performance obligation is a
commitment that the Group transfers a distinct goods or service to a customer in the contract. The
transaction price is the amount of consideration to which the Group expects to be entitled in
exchange for transferring promised goods or services to a customer, excluding amounts collected
on behalf of third parties and amounts expected to be refunded to a customer. The transaction price
recognised by the Group does not exceed the amount of accumulated recognised revenue that is
unlikely to be significantly reversed when the relevant uncertainty is eliminated.
The Group evaluates the contract on the contract start date, identifies each individual performance
obligation contained in the contract, and determines whether each individual performance
obligation is performed within a certain period or at a certain time point. It is a performance
obligation satisfied during a period of time and the Group recognises revenue during a period of
time according to the progress of performance if one of the following conditions is met: (i) the
customer obtains and consumes economic benefits at the same time of the Group's performance; (ii)
the customer is able to control goods or services in progress during the Group's performance; (iii)
goods or services generated during the Group's performance have irreplaceable utilization, and the
Group is entitled to collect amounts of cumulative performance part which have been done up to
now. Otherwise, revenue is recognised at a point in time when the customer obtains control over
the relevant goods or services.
- 57 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
of business - continued
The Group adopts output method, i.e., the value of goods or services transferred to customers to
determine the appropriate progress of performance. Where the progress cannot be determined
reasonably, the revenue is recognised based on the amount of cost that is expected to be
compensated based on the cost already incurred, until the progress of performance is reasonably
determined.
Contract assets refer to the right that the Group has transferred goods or services to customers and
is entitled to receive consideration, and the right depends on other factors other than the passage of
time. Please refer to Note (IV) 11 for details of the accounting policies for the impairment of
contract assets. The Group's unconditional (that is, only depending on the passage of time) right to
collect consideration from customers is separately listed as receivables.
Contract liabilities refer to the Group's obligation to transfer goods or services to a customer for
consideration received or receivable from the customer.
Contract assets and contract liabilities under the same contract are presented in net amount.
If there are two or more of performance obligations included in the contract, at the inception of the
contract, the Group allocates the transaction price to each single performance obligation based on
the proportion of stand-alone selling price of goods or services promised in each stand-alone
performance obligation. However, if there is conclusive evidence indicating that the contract
discount or variable consideration is only relative with one or more (not the whole) performance
obligations in the contract, the Group will allocate the contract discount or variable consideration
to relative one or more performance obligations. Stand-alone selling price refers to the price of a
single sale of goods or services. If the stand-alone selling price cannot be observed directly, the
Group estimates the stand-alone selling price through comprehensive consideration of all relative
information that can be reasonably acquired and maximum use of observable inputs.
In case of the existence of variable consideration (such as sales discount) in the contract, the Group
shall determine the best estimate of variable consideration based on the expected value or the most
probably occurred amount. The transaction price including variable consideration shall not exceed
the amount of the cumulatively recognised revenue which is unlikely to be significantly reversed
when relevant uncertainty is eliminated. At each balance sheet date, the Group re-estimates the
amount of variable consideration which should be included in transaction price.
- 58 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
of business - continued
If the customer pays non-cash consideration, the Group determines the transaction price based on
the fair value of the non-cash consideration. If the fair value of non-cash consideration cannot be
reasonably estimated, the Group shall determine the transaction price indirectly by reference to the
stand-alone selling price of the goods or services promised to transfer to the customer.
For any consideration payable to a customer in a contract, unless such payment is made in exchange
for a distinct good or service obtained from the customer, the Group accounts for the consideration
payable as a reduction of the transaction price. The resulting reduction in revenue is recognised at
the later of when the related revenue is recognised and when the Group pays or promises to pay the
consideration.
In case of the existence of a significant financing component in the contract, the Group shall
determine the transaction price on the assumption that the customer has paid the amount payable
by cash when obtaining the control over the goods or services. Differences between transaction
price and contract consideration are amortised using effective interest method during the contract
life. At the inception of the contract, if the period between when the Group transfers a promised
goods or service to a customer and when the customer pays for that goods or service will be one
year or less, the Group would not consider the significant component in the contract.
The Group assesses whether it controls each specified goods or service before that goods or service
is transferred to the customer to determine whether the Group is a principal or an agent. If the Group
controls the specified good or service before that good or service is transferred to a customer, the
Group is a principal and recognises revenue in the gross amount of consideration received or
receivable. Otherwise, the Group is an agent and recognises revenue in the amount of any fee or
commission to which it expects to be entitled. The fee or commission is the net amount of
consideration that the Group retains after paying the other party the consideration received in
exchange for the goods or services to be provided by that party, or is determined in accordance with
the established commission amount or percentage, etc.
Where the Group receives receipts in advance from a customer for sales of goods or rendering of
services, the amount is first recognised as a liability and then transferred to revenue when the related
performance obligation has been satisfied. When the Group's advance payments received are not
required to be refunded and it is probable that the customer will waive all or part of its contractual
rights, the Group recognises the said amounts as revenue on a pro-rata basis in accordance with the
pattern of exercise of the customer's contractual rights, if the Group expects to be entitled to the
amounts relating to the contractual rights waived by the customer; otherwise, the Group reverses
the related balance of the said liabilities to revenue only when it is highly unlikely that the customer
will require performance of the remaining performance obligations.
- 59 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
of business - continued
For port business, the revenue from the handling of containers and bulk cargos is recognised over
time based on the progress of completed services, and the revenue from the storage of containers
and bulk cargos is recognised on a straight-line basis over the period of storage.
For bonded logistics business, the revenue is recognised based on the progress of services rendered,
where the progress of completed services is determined based on the proportion of days on services
provided to the estimated total number of service days. As at the balance sheet date, the Group has
re-estimated the progress of completed bonded logistics service so that it reflects the changes in
performance status.
recognition and measurement methods
The Group has no similar operations under different business models which involve different
revenue recognition and measurement methods.
For the incremental cost of obtaining the contract (cost that will not occur if the contract is not
obtained) that is expected to be recoverable, it is recognised as an asset. If the amortisation period
of such asset is less than one year, it is recognised in profit or loss for the period when incurred.
Other expenses incurred for obtaining the contract is included in profit or loss for the period when
incurred, except for those explicitly assumed by the customer.
If the costs incurred in fulfilling a contract are not within the scope of any standards other than
Revenue Standards, the Group recognises an asset only if those costs meet all of the following
criteria: (1) the costs relate directly to a contract or to an anticipated contract that the Group can
specifically identify; (2) the costs enhance resources of the Group that will be used in satisfying
performance obligations in the future; and (3) the costs are expected to be recovered. The asset
mentioned above shall be amortised on a basis that is consistent with the revenue recognition of the
goods or services to which the asset relates and recognised in profit or loss for the period.
- 60 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Government grants refer to monetary assets and non-monetary assets obtained by the Group from
the government free of charge. Government grants are recognised when they can meet the
conditions attached to government grants and can be received.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount
received or receivable. If a government grant is in the form of a non-monetary asset, it is measured
at fair value. If the fair value cannot be reliably determined, it is measured at a nominal amount. A
government grant measured at a nominal amount is recognised immediately in profit or loss for the
period.
Government grants of the Group mainly include grants for intelligent system, etc., and these
government grants relate to assets as they will form long-term assets.
A government grant related to an asset is recognised as deferred income, and included in profit or
loss by stages over the useful life of the related asset in a reasonable and systematic way. A
government grant measured at a nominal amount is recognised immediately in profit or loss in the
current period. Where the relevant asset is sold, transferred, retired or damaged prior to the end of
its useful life, the related undistributed deferred income is transferred to profit or loss of the disposal
period.
Government grants of the Group mainly include grants for business development and specialized
operations, etc., and these government grants relate to income as they will not form long-term assets.
The Group classifies government grants that are difficult to be distinguished as government grants
related to income aggregately.
For a government grant related to income, if the grant is a compensation for related expenses or
losses to be incurred in subsequent periods, the grant is recognised as deferred income and
recognised in profit or loss for the period in which the related costs or losses are recognised; If the
grant is a compensation for related expenses or losses already incurred, the grant is recognised
immediately in profit or loss.
A government grant related to the Group's daily activities is recognised in other income; a
government grant not related to the Group's daily activities is recognised in non-operating income.
- 61 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
asset are capitalized when expenditures for such asset and borrowing costs are incurred and
activities relating to the acquisition, construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired, constructed or produced becomes ready for its
intended use or sale. Capitalization of borrowing costs is suspended during periods in which the
acquisition, construction or production of a qualifying asset is interrupted abnormally and when the
interruption is for a continuous period of more than 3 months. Capitalization is suspended until the
acquisition, construction or production of the asset is resumed. Other borrowing costs are
recognised as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned from depositing the borrowed funds before being used on the asset or any investment
income on the temporary investment of those funds. Where funds are borrowed under general-
purpose borrowings, the Group determines the amount of interest to be capitalized on such
borrowings by applying a capitalization rate to the weighted average of the excess of cumulative
expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization rate
is the weighted average of the interest rates applicable to the general-purpose borrowings. During
the capitalization period, exchange differences related to a specific-purpose borrowing denominated
in foreign currency are all capitalized. Exchange differences in connection with general-purpose
borrowings are recognised in profit or loss for the period in which they are incurred.
- 62 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The income tax expenses include current income tax and deferred income tax.
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods
are measured at the amount expected to be paid (or recovered) according to the requirements of tax
laws.
For temporary differences between the carrying amounts of certain assets or liabilities and their tax
base, or between the nil carrying amount of those items that are not recognised as assets or liabilities
and their tax base that can be determined according to tax laws, deferred tax assets and liabilities
are recognised using the balance sheet liability method.
Deferred income tax are generally recognised for all taxable temporary differences. Deferred tax
assets for deductible temporary differences are recognised to the extent that it is probable that
taxable profits will be available against which the deductible temporary differences can be utilized.
However, for temporary differences associated with the initial recognition of goodwill and the
initial recognition of an asset or liability arising from a transaction, which is not a business
combination that affects neither the accounting profit nor taxable profits (or deductible losses) and
will not result in taxable temporary differences and deductible temporary differences in equivalent
amounts at the time of transaction, no deferred tax asset or liability is recognised.
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognised
to the extent that it is probable that future taxable profits will be available against which the
deductible losses and tax credits can be utilized.
- 63 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Deferred tax liabilities are recognised for taxable temporary differences associated with investments
in subsidiaries, associates and joint ventures, except where the Group is able to control the timing
of the reversal of the temporary differences and it is probable that the temporary differences will
not be reversed in the foreseeable future. Deferred tax assets arising from deductible temporary
differences associated with investments in subsidiaries, associates and joint ventures are recognised
to the extent that it is probable that future taxable profits will be available against which the
deductible temporary differences can be utilized and they are expected to be reversed in the
foreseeable future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates applicable
in the period in which the asset is realized or the liability is settled according to tax laws.
Current and deferred tax expenses or income are recognised in profit or loss for the period, except
when they arise from transactions or events that are directly recognised in other comprehensive
income or shareholders' equity, in which case they are recognised in other comprehensive income
or shareholders' equity, and when they arise from business combinations, in which case they adjust
the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it
is no longer probable that sufficient taxable profits will be available in the future to allow the benefit
of deferred tax assets to be utilized. Any such reduction in amount is reversed when it becomes
probable that sufficient taxable profits will be available.
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis
or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax
liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle
current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously,
in each future period in which significant amounts of deferred tax assets or liabilities are expected
to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net basis.
- 64 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
statements denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange
rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into functional currency
using the spot exchange rates at the balance sheet date. Exchange differences arising from the
differences between the spot exchange rates prevailing at the balance sheet date and those on initial
recognition or at the previous balance sheet date are recognised in profit or loss for the period,
except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign
currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset
during the capitalization period; (2) exchange differences related to hedging instruments for the
purpose of hedging against foreign currency risks are accounted for using hedge accounting; (3)
exchange differences arising from changes in the carrying amounts (other than the amortised cost)
of monetary items at fair value through other comprehensive income are recognised as other
comprehensive income.
When the consolidated financial statements include foreign operation(s), if there is foreign currency
monetary item constituting a net investment in a foreign operation, exchange differences arising
from changes in exchange rates are recognised as "exchange differences arising from translation of
financial statements denominated in foreign currencies" in other comprehensive income, and in
profit or loss for the period upon disposal of the foreign operation.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in
functional currency at the spot exchange rates on the dates of the transactions. Foreign currency
non-monetary items measured at fair value are re-translated at the spot exchange rate on the date
when the fair value is determined. Difference between the re-translated functional currency amount
and the original functional currency amount is treated as changes in fair value (including changes
in exchange rate) and is recognised in profit or loss or as other comprehensive income.
- 65 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
statements denominated in foreign currencies - continued
For the purpose of preparing the consolidated financial statements, financial statements of a foreign
operation are translated from the foreign currency into RMB using the following method: assets
and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the balance
sheet date; shareholders' equity items except for translation differences arising from translation of
foreign currency financial statements items in retained earnings and other comprehensive income
are translated at the spot exchange rates at the dates on which such items arose; all items in the
income statement as well as items reflecting the distribution of profits are translated at the average
exchange rates of the accounting period of the consolidated financial statements; retained earnings
at the beginning of the year are the converted year-end retained earnings of the previous year. The
year-end retained earnings are calculated and presented in accordance with the items of profit
distribution after conversion. The difference between the translated assets and the aggregate of
liabilities and shareholders' equity items is recognised as other comprehensive income and included
in shareholders' equity.
Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary
are translated at average exchange rate during the accounting period of consolidated financial
statements. The effect of exchange rate changes on cash and cash equivalents is regarded as a
reconciling item and presented separately in the cash flow statement as "effect of exchange rate
changes on cash and cash equivalents".
The amount at the beginning of the year and the comparative figures of previous year are presented
at the translated amounts in the previous year's financial statements.
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a
foreign operation due to disposal of certain interest in it or other reasons, the Group transfers the
accumulated exchange differences arising from translation of financial statements of this foreign
operation attributable to the owners' equity of the Company and presented under other
comprehensive income, to profit or loss in the period in which the disposal occurs.
In case of a disposal of part equity investments or other reason leading to lower interest percentage
in foreign operations but does not result in the Group losing control over a foreign operation, the
exchange differences arising from the translation difference of financial statements denominated in
foreign currencies related to this disposed part are re-attributed to non-controlling interests and are
not recognised in profit or loss. For partial disposals of equity interests in foreign operations which
are associates or joint ventures, the proportionate share of the accumulated exchange differences
arising from translation difference of financial statements denominated in foreign currencies is
reclassified to profit or loss.
- 66 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
A lease is a contract in which the lessor, for a certain period of time, gives the lessee the right to
use the assets to obtain a consideration.
On the contract start date, the Group assesses whether the contract is a lease or includes a lease. If
one party in the contract transfers the right to control the use of one or more identified assets within
a certain period in exchange for consideration, the contract is a lease or includes a lease. Unless the
contract terms and conditions change, the Group will not re-evaluate whether the contract is a lease
or includes a lease.
For a contract that contains one or more lease components or non-lease components, the Group
separates each individual lease and non-lease component and allocates the contract consideration
in the relative proportion of the sum of the individual price of each lease component and the
individual price of the non-lease component.
Except for short-term leases and leases of low-value assets, the Group recognises the right-of-use
assets of the leases at the commencement date. The commencement date of the lease is the date
from which the lessor provides the leased assets to make them available for use by the Group. Right-
of-use assets are initially measured at cost. The cost includes:
• the amount of the initial measurement of the lease liabilities.
• any lease payments made at or before the commencement date, less any lease incentives.
• any initial direct costs incurred by the Group.
• an estimate of costs to be incurred by the Group in dismantling and removing the underlying
asset, restoring the site on which it is located or restoring the underlying asset to the condition
required by the terms and conditions of the lease.
Right-of-use assets are depreciated by the Group in accordance with the ASBE No.4 Fixed Assets.
If the Group is reasonably certain, that the lease will transfer ownership of the underlying asset to
the Group by the end of the lease term, the right-of-use assets are depreciated from the
commencement date to the end of the useful life of the underlying asset. Otherwise, the right-of-
use assets are depreciated from the commencement date to the earlier of the end of the useful life
of the right-of-use assets or the end of the lease term.
- 67 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Except for short-term leases and leases of low-value assets, the Group initially measures lease
liabilities at the present value of the outstanding lease payments at the commencement date. In
calculating the present value of the lease payments, the Group uses the implicit interest rate of the
lease as the discount rate. If it is not possible to determine the implicit interest rate of the lease, the
incremental borrowing rate shall be applied.
The lease payments comprise the following payments by the Group for the right to use the
underlying asset during the lease term:
• fixed payments (including in-substance fixed payments), less any lease incentives.
• variable lease payments that depend on an index or a rate.
• the exercise price of a purchase option if the Group is reasonably certain to exercise that
option.
• payments for terminating the lease, if the lease term reflects the Group exercising an option
to terminate the lease.
• amounts expected to be payable by the Group under residual value guarantees.
Variable lease payments that depend on an index or a rate, are initially measured using the index or
rate as at the commencement date. Variable lease payments not included in the measurement of the
lease liabilities, are recognised in profit or loss, or in the cost of relevant assets, in the period of
those payments.
After the commencement date, interest expenses on the lease liabilities in each period during the
lease term is calculated by a constant periodic rate of interest and included in profit or loss or
charged to cost of related assets.
After the commencement date, the Group shall remeasure the lease liabilities and make
corresponding adjustments to the related right-of-use assets in the following circumstances. If the
carrying amount of the right-of-use assets is reduced to zero and there is a further reduction in the
measurement of the lease liabilities, the Group shall recognise the difference in profit or loss:
• where there is a change in the lease term, or in the assessment of an option to purchase the
underlying asset, the Group remeasures the lease liabilities, on the basis of the revised leases
payments and the revised discount rate.
• where there is a change in the amounts expected to be payable under a residual value guarantee,
or in future lease payments resulting from a change in an index or a rate used to determine
those payments, the Group remeasures the lease liabilities, on the basis of the revised lease
payments and the unchanged discount rate, unless the change in the lease payments results
from a change in floating interest rates, in which case the revised discount rate is applied.
- 68 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group elects not to recognise right-of-use assets or lease liabilities for short-term leases and
leases of low-value assets, i.e., port and terminal facilities, buildings, machinery and equipment,
furniture, fixture and other equipment, motor vehicles and cargo ships and others. A short-term
lease is a lease that, at the commencement date, has a lease term of 12 months or less and does not
contain a call option. A lease of low-value assets is a lease that, the value of the underlying asset is
lower when it is new. For short-term leases and leases of low-value assets, the Group recognises
the lease payments in profit or loss, or in the cost of related assets on a straight-line basis over each
period within the lease term.
A lease modification should be accounted for as a separate lease if both of the following apply:
• the modification increases the scope of the lease by adding the right to use one or more
underlying assets.
• the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope and any appropriate adjustments to that stand-alone price
according to the circumstances of the particular contract.
For a lease medication that is not accounted for as a separate lease, at the effective date of the lease
modification, the Group should allocate the consideration in the modified contract, determine the
lease term of the modified lease and remeasure the lease liabilities based on the present value of the
changed lease payments and the revised discount rate.
For lease modifications that decrease the scope of the lease or shorten the term of the lease, the
Group should decrease the carrying amount of the right-of-use assets with any gain or loss relating
to the partial or full termination of the lease recognised in profit or loss. For re-measurement of
lease liabilities due to other lease modifications, a corresponding adjustment is made to the carrying
amount of the right-of-use assets.
- 69 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
For a contract that contains lease components and non-lease components, the Group allocates the
contract consideration in accordance with the Revenue Standards on allocation of transaction prices,
based on the respective individual prices of the lease components and the non-lease components.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership. All other leases are classified as operating leases.
The Group recognises lease receipts from operating leases as rental income using a straight-line
method over the respective periods of the lease term. The Group's initial direct costs incurred in
connection with operating leases are capitalized when the costs incurred, and are allocated to profit
or loss for the period over the lease term on the same basis as the recognition of rental income.
Variable lease receipts acquired by the Group in connection with operating leases that are not
included in the lease receipts are recognised in profit or loss for the period when they are actually
incurred.
- 70 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
At the commencement date, the Group recognises a finance lease receivable at the amount equal to
the net lease investment with assets under finance lease terminal recognised. The net lease
investment is the sum of any unguaranteed residual value and the present value of the lease receipts
over the lease term discounted at the interest rate implicit in lease.
The lease receivable comprises the following payments collected by the Group from the lessee for
the transfer of the right to use the underlying assets during the lease term:
• fixed payments (including in-substance fixed payments) paid by the lessee, less any lease
incentives.
• variable lease payments that depend on an index or a rate.
• the exercise price of a purchase option, provided that it is reasonably determined that the
lessee will exercise the option.
• payments for terminating the lease, provided that the lease term reflects that the lessee will
exercise the option to terminate the lease;
• residual value of guarantee provided to the Group by the lessee, a party related to the lessee
and an independent third party with the financial ability to fulfil the guarantee obligations.
Variable lease receipts not included in the net lease investment are recognised in profit or loss when
they are actually incurred.
Interest income for each period over the lease term is calculated and recognised by the Group at a
fixed periodic rate.
As the lessor of a sublease, the Group accounts for the original lease contract and the sublease
contract on a separate basis. The Group classifies the subleases based on the right-of-use assets
generating from the original lease rather than the underlying assets of the original lease.
- 71 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
The Group accounts for a modification to an operating lease as a new lease from the effective date
of the modification, considering any lease advances or receivables relating to the original lease as
the lease receipts for the new lease.
A lease modification should be accounted for as a separate lease if there is a modification in a
finance lease and both of the followings apply:
• the modification increases the scope of the lease by adding the right to use one or more
underlying assets; and
• the consideration for the lease increases by an amount commensurate with the stand-alone
price for the increase in scope with any appropriate adjustment to that stand-alone price.
For a modification to a finance lease that is not accounted for as a separate lease, the Group accounts
for the modification as follows:
• If the lease would have been classified as an operating lease had the modification been
effective at the commencement date, the Group should account for the lease modification as
a new lease from the effective date of the modification, and measure the carrying amount of
the underlying assets at the amount equal to the net lease investment before the effective date
of the modification;
• If the lease would have been classified as a finance lease had the modification been effective
at the commencement date, the Group should account for it in accordance with the provisions
on contract modification and renegotiation under Accounting Standards for Business
Enterprises No. 22 - Financial Instruments: Recognition and Measurement.
If the transfer of an asset in a sale and leaseback transaction does not constitute a sale, the Group
does not recognise the transferred asset but a financial asset at an amount equal to the transfer
proceeds, and accounts for such financial asset under the Accounting Standards for Business
Enterprises No. 22 - Financial Instruments: Recognition and Measurement. If the transfer of an
asset constitutes a sale, the Group accounts for the purchase of the asset in accordance with other
applicable Accounting Standards for Business Enterprises and accounts for the lease of the asset.
- 72 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IV) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
According to the Administrative Measures for the Collection and Utilization of Enterprise Work
Safety Funds (Cai Zi [2022] No. 136) jointly issued by the Ministry of Finance and the Emergency
Department on 13 December 2022, safety production cost set aside by the Group is directly included
in the cost of relevant products or recognised in profit or loss for the period, and transferred to
specific reserve simultaneously. When safety production cost set aside is utilized, if the costs
incurred can be categorized as expenditure, the costs incurred should be charged against the specific
reserve. If the costs set aside are used to build up fixed assets, the costs should be charged to
construction in progress, and reclassified to fixed assets when the safety projects are ready for
intended use. Meantime, expenditures in building up fixed assets are directly charged against the
specific reserve with the accumulated depreciation recognised at the same amount. Depreciation
will not be made in the future period on such fixed assets.
When the non-monetary assets are of commercial substance and the fair value of assets received or
the assets given up can be measured reliably, the non-monetary transactions are measured at fair
value. For the asset received, the fair value of the asset given up and related taxes payable are
recognised as the cost at initial recognition; For the asset given up, at derecognition, the difference
between the fair value and the carrying amount is recognised in profit or loss for the current period.
When there is clear evidence indicating that the fair value of the received asset is more reliable, for
the asset received, the fair value of the asset received and related taxes payable are recognised as
the cost at initial recognition; For the asset given up, at derecognition, the difference between the
fair value of the asset received and the carrying amount of the asset given up is recognised in profit
or loss for the current period.
When the non-monetary transactions fail to meet criteria to be measured at fair value, the
transactions are measured at carrying amounts. For the asset received, the carrying amount of the
asset given up and relevant taxes payable are recognised as the cost of at initial recognition. For the
asset given up, at derecognition, no profit or loss is recognised.
- 73 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES
In the application of accounting policies and accounting estimates as set out in Note (IV), the Group
is required to make judgments, estimates and assumptions about the carrying amounts of items in
the financial statements that cannot be measured accurately, due to the internal uncertainty of the
operating activities. These judgments, estimates and assumptions are based on historical experience
of the Group's management as well as other factors that are considered to be relevant. Actual results
may differ from these estimates.
The Group regularly reviews the judgments, estimates and assumptions on a going concern basis.
Changes in accounting estimates which only affect the current period should be recognised in the
current period; changes which not only affect the current but the future periods should be recognised
in the current and future periods.
estimates
At the balance sheet date, key assumptions and uncertainties in critical judgments and accounting
estimates that are likely to lead to significant adjustments to the carrying amounts of assets and
liabilities in the future are as follows:
The book value of goodwill on 31 December 2025 is RMB 6,176,416,050.77. The Group will
conduct impairment testing on goodwill at least annually. For the purpose of impairment testing,
the recoverable amount of each assets group and combination of assets groups that generate
goodwill of the Group is determined by fair value less estimated disposal expenses and by the
present value of estimated future cash flows, which involve the judgment of management.
The Group calculates and makes provision for deferred tax liabilities according to the profit
distribution plans of subsidiaries, associates and joint ventures and relevant provisions of tax law.
For retained earnings of the investee which are not expected to be distributed, since the profits will
be used for the daily operation and future development of the investee, no deferred tax liabilities
are recognised. If the profits to be actually distributed in future years are more or less than those
expected, corresponding deferred tax liabilities will be recognised or reversed in profit or loss for
the period at the earlier of the date on which the profit distribution plan is changed and the date on
which the profit distribution is declared.
Deferred tax assets are recognised based on the deductible temporary differences and the
corresponding tax rate, to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences can be utilized. If the actual taxable income in
future years are more or less than that expected, corresponding deferred tax assets will be recognised
or reversed in profit or loss for the period in which they are actually incurred.
- 74 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(V) CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY
ASSUMPTIONS AND UNCERTAINTIES IN ACCOUNTING ESTIMATES - continued
estimates - continued
The Group assesses the estimated useful lives and residual value of fixed assets and intangible assets.
Such estimate is made by reference to the historical experience of actual useful lives and residual
value of fixed assets and intangible assets of similar nature and function, and is subject to significant
changes due to technical innovation and fierce industry competition. Where the estimated useful
lives and residual value of fixed assets and intangible assets are less than the previous estimates,
the Group will increase the depreciation and amortisation, or write off or eliminate the technically
obsolete fixed assets or intangible assets.
(VI) CHANGES IN SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES
There are no significant changes in accounting policies or accounting estimates of the Group this
year.
- 75 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VII) TAXES
Taxes Tax basis Tax rate
Taxable income 8.25%-34% (Note 1)
Enterprise income tax
Dividend income tax 5%,10% (Note 2)
Income from sale of goods 9%,13%
Income from transportation, loading and
Value-added tax (Note 3) unloading business and part of modern 6%
(hereinafter referred to as service industries
"VAT") Income from sale of real estate, property
management, lease of real estate, etc.
Income from leases of movable properties 13%
Social contribution tax (Note 4) Income 0.65%-7.6%
Deed tax Land use right and property transfer amount 3%-5%
Property tax 70% of cost of property or rental income 1.2% or 12%
City maintenance and
VAT paid 1%-7%
construction tax
Education surtax VAT paid 3%
Land use tax Land area actually occupied RMB 1-12 per square meter
Amount of pollution equivalents of the
RMB 1.2-1.8 per pollution
Environmental protection tax taxable air pollutants converted based on the
equivalent
quantity of pollutions discharged
- 76 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VII) TAXES - continued
Note 1: The Group's enterprise income tax is calculated based on the current tax rate stipulated by
local tax laws. Among them, the Company is subject to an enterprise income tax rate of
income tax rate of 25%, and the other overseas subsidiaries are subject to enterprise
income tax rates between 10% and 34%.
The Company obtains dividends distributed by overseas subsidiaries and should pay
enterprise income tax at a rate of 25% in accordance with relevant Chinese tax laws. The
Company obtains taxable income outside of China, and the amount of income tax that has
been paid abroad can be offset with the current taxable amount. The credit limit is the
taxable amount calculated in accordance with the provisions of the Enterprise Income Tax
Law.
Note 2: Foreign investors who receive dividends of profits from Chinese subsidiaries in 2008 and
thereafter generally shall pay withholding income tax at a rate of 10% in accordance with
the relevant provisions on the PRC enterprise income tax. For companies incorporated in
certain regions (including Hong Kong and Singapore), if the companies meet relevant
conditions, they will enjoy a preferential tax rate of 5%.
Note 3: The VAT amount is the balance of the output tax less the deductible input tax, and the
output tax is calculated in accordance with the sales income and the corresponding tax rate
stipulated in the relevant tax laws of China.
Note 4: The social contribution tax is the tax paid by TCP Participa??es S.A. (hereinafter referred
to as "TCP"), an overseas subsidiary of the Group, and Colombo International Container
Terminals Limited (hereinafter referred to as “CICT”) to the local government.
Certain subsidiaries of the Group in China are recognised as high-tech enterprises or encouraged
industrial enterprises in the region and are subject to an enterprise income tax rate of 15%. Some of
Group's subsidiaries inside of China may pay corporate income tax at the rate of 15% according to
the preferential policies of Qianhai Shenzhen Hong Kong Modern Service Industry Cooperation
Zone.
- 77 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VII) TAXES - continued
Certain subsidiaries of the Group in China are small and micro enterprises and are subject to a
preferential tax rate of 20%. In accordance with the Announcement on Relevant Tax and Fee
Policies for Further Supporting the Development of Micro and Small Enterprises and Individual
Industrial and Commercial Households (Announcement No. 12 of the Ministry of Finance and the
State Administration of Taxation in 2023), for small and micro enterprises, the taxable income is
calculated at a reduced rate of 25% and the enterprise income tax is paid at a rate of 20% from 1
January 2023 and 31 December 2027.
Some subsidiaries of the Group outside China can reduce or exempt corporate income tax according
to relevant local tax policies.
From 1 January 2023 to 31 December 2027, the urban land use tax for certain domestic subsidiaries
of the Group on the land for bulk commodity storage facilities is levied at the reduced rate of 50%
of the tax amount applicable to the grade of the land.
As approved by State Taxation Administration Shenzhen Qianhai Shenzhen-Hong Kong Modern
Service Industry Cooperation Zone Taxation Bureau (formerly, Shekou Taxation Sub-bureau of
Shenzhen Tax Bureau), State Administration of Taxation on 12 October 2017, certain subsidiaries
of the Group are exempted from VAT for auxiliary logistics services (excluding warehousing
services and delivery services) provided to overseas enterprises.
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
Item Closing Balance Opening Balance
Cash 191,636.31 457,486.90
Bank deposits 10,403,337,125.34 11,769,350,938.86
Other cash and bank balances 238,129,183.87 114,600,721.02
Cash deposited in the finance company 4,733,188,415.27 4,745,991,554.35
Total 15,374,846,360.79 16,630,400,701.13
Including: Total amount of funds deposited overseas 6,289,654,047.38 5,449,122,430.53
- 78 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Note 1: The interest receivable at the end of the year amounted to RMB 42,029,709.64 (31
December 2024 : RMB 35,470,534.89).
Note 2: Cash deposited in the finance company included the interest receivable amounting to
RMB 14,222,500.39 (31 December 2024 : RMB 35,221,381.65).
Note 3: As of the year-end, other cash and bank balances included term deposits amounting to
RMB 30,000,000.00 that are unrestricted and have maturities exceeding three months. (31
December 2024 : none).
Note 4: Restricted use of cash at bank and on hand at the end of the year.
Item Closing Balance Opening Balance
Interest receivable 56,252,210.03 70,691,916.54
Performance bond 41,023,738.72 41,064,199.70
Litigation frozen funds 3,000,000.00 1,826,085.98
Guarantee deposit 200,000.00 200,000.00
ETC card frozen funds 12,750.00 12,750.00
Bill deposit - 1,536,194.00
Total 100,488,698.75 115,331,146.22
Item Closing Balance Opening Balance
Financial assets classified as at FVTPL 7,578,824,365.75 5,685,135,472.01
Including: Structured deposits 7,578,824,365.75 5,685,135,472.01
Total 7,578,824,365.75 5,685,135,472.01
(1) Category of bills receivable
Category Closing Balance Opening Balance
Bank acceptance 122,029,884.15 263,127,883.63
Commercial acceptance 29,000,000.00 7,000,000.00
Total 151,029,884.15 270,127,883.63
Note: For the year ended 31 December 2025, no provision for bad debts of bills receivable is
assessed on an individual basis and, the acceptor of bank acceptance and commercial
acceptance for which provision for bad debts is assessed on a portfolio basis has high credit
ratings with no significant credit risks, therefore, no provision for bad debts is made.
(2) As at 31 December 2025, the Group has no bills receivable pledged.
- 79 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(3) As at 31 December 2025, bills receivable endorsed or discounted by the Group and not yet
due on the balance sheet date.
Amount Unrecognised
Item derecognised at amount at the end
the end of the year of the year
Bank acceptance 21,462,114.63 32,870,944.50
(4) As at 31 December 2025, the Group has no bills transferred to accounts receivable due to
the drawer's failure to perform.
(5) The Group has no bills receivable written off for the year ended 31 December 2025.
(1) Overall situation of accounts receivable
Category Closing Balance Opening Balance
Accounts receivable 1,362,653,229.32 1,282,371,828.87
Less: Provision for bad debts 65,486,371.62 88,963,445.09
Total 1,297,166,857.70 1,193,408,383.78
(2) Aging analysis of accounts receivable
Closing Balance Opening Balance
Aging Proportion Provision for Proportion Provision for
Book value Book value
(%) bad debts (%) bad debts
Within 1 year
(Including 1 year)
(Including 2 years)
(Including 3 years)
More than 3 years 32,416,934.61 2.38 31,833,424.57 53,637,695.58 4.18 53,318,529.98
Total 1,362,653,229.32 100.00 65,486,371.62 1,282,371,828.87 100.00 88,963,445.09
- 80 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(3) Disclosure of accounts receivable by category
Closing Balance Opening Balance
Book value Provision for bad debts Book value Provision for bad debts
Item Reason for provision
Percentage Proportion Carrying amount Percentage Proportion Carrying amount
Value Value Value Value
(%) (%) (%) (%)
Accrued according to
A 816,089,512.92 59.89 220,906.31 0.03 815,868,606.61 736,270,226.13 57.41 384,388.87 0.05 735,885,837.26 the expected loss rate
of each rating
Accrued according to
B 405,297,310.13 29.74 872,676.19 0.22 404,424,633.94 370,318,170.34 28.88 631,601.25 0.17 369,686,569.09 the expected loss rate
of each rating
Accrued according to
C 78,476,799.95 5.76 4,725,227.39 6.02 73,751,572.56 84,232,990.43 6.57 1,488,846.56 1.77 82,744,143.87 the expected loss rate
of each rating
Low probability of
D 62,789,606.32 4.61 59,667,561.73 95.03 3,122,044.59 91,550,441.97 7.14 86,458,608.41 94.44 5,091,833.56
recovery
Total 1,362,653,229.32 100.00 65,486,371.62 4.81 1,297,166,857.70 1,282,371,828.87 100.00 88,963,445.09 6.94 1,193,408,383.78 ——
Including: Provision for bad debts assessed on an individual basis at the end of the year
Closing Balance
Name Expected credit loss Reason for provision
Book value Provision for bad debts
rate (%)
Client 1 14,166,889.98 14,166,889.98 100.00 Low probability of recovery
Client 2 6,387,379.34 6,387,379.34 100.00 Low probability of recovery
Client 3 5,700,298.86 5,700,298.86 100.00 Low probability of recovery
Client 4 4,828,983.86 4,828,983.86 100.00 Low probability of recovery
Client 5 3,792,704.25 3,790,012.45 99.93 Low probability of recovery
Others 27,913,350.03 24,793,997.24 88.82 ——
Total 62,789,606.32 59,667,561.73 95.03 ——
- 81 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(4) For the year ended 31 December 2025, the Group has no significant provision for bad debts
recovered or reversed this year.
(5) Accounts receivable written off this year
Arising from
Name of Procedures
Nature Amount Reason for write-off related party
entity performed
transactions or not
Client 6 Service fees 24,955,108.44 Confirmed as irrecoverable Yes No
Client 7 Service fees 6,237,239.55 Confirmed as irrecoverable Yes No
Client 8 Service fees 1,590,646.16 Confirmed as irrecoverable Yes No
Total —— 32,782,994.15 —— —— ——
(6) The top five balances of accounts receivable at the end of the year classified by debtor
Relationship Proportion of the
Name of Provision for bad
with the Book value Aging amount to the total
entity debts
Group accounts receivable (%)
Within 1 year,1-2
Client 9 Third party 332,580,919.70 2,721,810.79 24.41
years,2-3years
Client 10 Third party 53,575,185.60 Within 1 year 1,324,615.32 3.93
Within 1 year,1-2
Client 11 Third party 53,374,060.50 37,576.95 3.92
years
Client 12 Third party 45,701,172.74 Within 1 year 18,877.32 3.35
Client 13 Third party 44,222,826.59 Within 1 year 28,530.89 3.25
Total —— 529,454,165.13 —— 4,131,411.27 38.86
- 82 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Classification of receivables under financing
Item Closing Balance Opening Balance
Bank acceptance measured at fair value 114,680,738.25 -
(2) As at 31 December 2025, the Group has no pledged receivables under financing.
(3) At the end of the year, there is no Company's receivables under financing that have been
endorsed or discounted and have not yet matured at the balance sheet date.
(1) Aging analysis of prepayments
Closing Balance Opening Balance
Book value Book value
Aging Impairment Impairment
Proportion provision Proportion provision
Value Value
(%) (%)
Within 1 year (including 1 year) 79,429,482.24 91.21 - 58,397,947.01 98.69 -
More than 3 years 60,400.00 0.07 - 150,462.36 0.25 -
Total 87,079,817.21 100.00 4,260,618.26 59,177,117.22 100.00 -
(2) As at 31 December 2025, the Group has no significant prepayments aged more than one
year.
(3) The top five balances of prepayments at the end of the year
Proportion in total Provision for
Name of entity Closing Balance
prepayments(%) bad debts
Supplier 1 12,141,359.50 13.94 -
Supplier 2 5,778,006.01 6.64 -
Supplier 3 3,663,263.21 4.21 -
Supplier 4 3,423,600.00 3.93 -
Supplier 5 3,126,654.88 3.59 -
Total 28,132,883.60 32.31 -
- 83 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Item Closing Balance Opening Balance
Dividends receivable 576,943,449.36 554,387,723.94
Other receivables 435,711,829.28 612,111,619.96
Total 1,012,655,278.64 1,166,499,343.90
(1) Presentation of dividends receivable by aging
Whether there is
Opening Reason for non-
Name of investee Closing Balance impairment and
Balance recovery
its judgment basis
Dividends receivable with an aging within 1 year 467,505,525.56 436,240,220.68 —— ——
Including: —— —— —— ——
Shanghai International Port (Group) Co., Ltd.
(hereinafter referred to as "Shanghai Port Group")
Qingdao Port Dongjiakou Ore Terminal Co., Ltd. 68,175,602.27 - —— No
China Nanshan Development (Group) Incorporation
(hereinafter referred to as "Nanshan Group")
Euro-Asia Oceangate S.à r.l. 28,485,290.83 23,881,469.17 —— No
PORT OF NEWCASTLE INVESTMENTS
(PROPERTY HOLDINGS) PTY LIMITED
China Ocean Shipping Agency Shenzhen Co., Ltd. - 10,575,000.00 —— ——
Others - 1,190,109.26 —— ——
Dividends receivable with an aging of more than one
year
Including: —— —— —— ——
Relevant procedures are
being handled and past
Nanshan Group 74,028,000.00 74,028,000.00 No
dividends are being paid
in succession
Zhanjiang Merchants Port City Investment Co., Ltd.
(hereinafter referred to as "Merchants Port City")
COSCO Logistics (Zhanjiang) Co., Ltd. - 5,649,001.16 —— No
Others 216,400.00 216,400.00 Lack of funds No
Sub-total 577,520,970.33 554,942,666.61 —— ——
Less: Provision for bad debts 577,520.97 554,942.67 —— ——
Total 576,943,449.36 554,387,723.94 —— ——
- 84 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Aging analysis of other receivables
Closing Balance Opening Balance
Aging Proportion Provision for bad Proportion Provision for
Book value Book value
(%) debts (%) bad debts
Within 1 year
(including 1 year)
(including 2 year)
(including 3 year)
More than 3 years 813,057,695.18 75.76 626,156,320.99 616,886,752.77 52.40 381,113,368.46
Total 1,073,296,382.50 100.00 637,584,553.22 1,177,150,316.19 100.00 565,038,696.23
- 85 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Disclosure of other receivables by nature
Item Closing Balance Opening Balance
Operation compensation (Note 1) 560,956,025.90 512,608,434.72
Advance payment 233,561,792.45 227,885,870.03
Land compensation (Note 2) 58,262,369.00 197,262,369.00
Special subsidies collected on behalf 19,779,450.00 19,779,450.00
Security deposit 33,170,963.31 28,631,566.40
Others 167,565,781.84 190,982,626.04
Sub-total 1,073,296,382.50 1,177,150,316.19
Less: Provision for bad debts 637,584,553.22 565,038,696.23
Total 435,711,829.28 612,111,619.96
Note 1: It is the operating compensation that the subsidiary of the Company shall collect from the
holding company of its non-controlling shareholders according to the agreement. As at 31
December 2025, the Group has accumulated the compensation that has not been received,
which is equivalent to RMB 560,956,025.90. The allowance for bad debts has been fully
accrued.
Note 2: On 9 October 2021, Zhanjiang Port (Group) Co., Ltd. (hereinafter referred to as
"Zhanjiang Port"), a subsidiary of the Company, signed the Agreement on the Recovery of
State owned Land Use Rights with local government agencies, which stipulates that
Zhanjiang Port will return 195.68 mu of land located in Zhanjiang Comprehensive Bonded
Zone, east of Shugang Avenue, to local government agencies at a price of RMB
December 2025, the above land compensation of RMB 89,000,000.00 has been recovered,
and the remaining RMB 630,000.00 of land compensation has not been recovered.
On 4 September 2024, Zhanjiang Port signed the Agreement on the Recovery of State
owned Land Use Rights with local government agencies, which stipulates that Zhanjiang
Port will return 146,970.20 square meters of land and assets on the ground located in the
north of Xiashan Port District of Zhanjiang to local government agencies at a price of
RMB 107,632,369.00. The above land and above ground assets have been transferred
before 18 September 2024. As at 31 December 2025, Zhanjiang Port has recovered land
compensation of RMB 50,000,000.00, the above land compensation of RMB
- 86 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(3) Provision for credit loss of other receivables
Closing Balance Opening Balance Reason for provision
Book balance Provision for bad debts Book balance Provision for bad debts
Item
Proportion Provision Book value Proportion Provision Book value
Amount Amount Amount Amount
（%） rate（%） （%） rate（%）
Accrued based on the
A 328,840,429.56 30.64 43,549.74 0.01 328,796,879.82 499,361,668.36 42.42 13,957.42 - 499,347,710.94 expected loss rate of
each rating
B - - - - - - - - - - ——
C - - - - - - - - - - ——
Expected to be
D 744,455,952.94 69.36 637,541,003.48 85.64 106,914,949.46 677,788,647.83 57.58 565,024,738.81 83.36 112,763,909.02
unrecoverable
Total 1,073,296,382.50 100.00 637,584,553.22 59.40 435,711,829.28 1,177,150,316.19 100.00 565,038,696.23 48.00 612,111,619.96 ——
Including significant other receivables for which provision for bad debts is assessed on an individual basis (credit rating of D)
Name of entity Closing Balance Provision for bad debts ECL rate (%) Reason for provision
Client 14 560,956,025.90 560,956,025.90 100.00 Expected to be unrecoverable (Note)
Client 15 122,569,018.03 28,156,519.86 22.97 No specific payment plan
Client 16 14,000,000.00 14,000,000.00 100.00 Expected to be unrecoverable
Total 697,525,043.93 603,112,545.76 —— ——
Note: Refer to Note (VIII) 7.3(2).
- 87 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(4) Movements of provisions for bad and doubtful debts
Stage 1 Stage 2 Stage 3
Lifetime expected Lifetime expected
Item 12-month expected Total
credit loss (not credit loss (credit-
credit loss
credit-impaired) impaired)
As at 1 January 2025 13,957.42 - 565,024,738.81 565,038,696.23
Balance of other receivables at 1 January 2025
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 -5,781.70 - 5,781.70 -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year 40,572.74 - 29,960,339.38 30,000,912.12
Reversal for the year -5,198.72 - -3,931,866.01 -3,937,064.73
Effect of changes in the scope of
- - - -
consolidation
Charge-off for the year - - - -
Write-off for the year - - -1,682,741.75 -1,682,741.75
Other changes - - 48,164,751.35 48,164,751.35
As at 31 December 2025 43,549.74 - 637,541,003.48 637,584,553.22
(5) Other receivables written off during the year
Other
Nature of Approval receivables
Name of entity other Written-off amount Reason for write-off procedures arising from
receivables performed related-party
transactions
Confirming that accounts
Advance
Client 17 1,634,741.75 receivable cannot be Yes No
payment
recovered
Confirming that accounts
Employee
Client 18 48,000.00 receivable cannot be Yes No
loans
recovered
Total —— 1,682,741.75 —— —— ——
- 88 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(6) The top five balances of other receivables at the end of the year classified by debtor
Relationship Proportion to Provision for credit
Name of entity with the Book value Aging total other impairment at the Nature
Group receivables (%) end of the year
GLOBAL TERMINAL Operation
Third party 560,956,025.90 More than 3 years 52.26 560,956,025.90
LIMITED S.A.R.L. compensation
Committee of China
Advance payment
Seamen's Union Zhanjiang Third party 122,569,018.03 More than 3 years 11.42 28,156,519.86
for transactions
Port (Group) Co., Ltd
Zhanjiang Land Reserve 1-2 years, more
Third party 58,262,369.00 5.43 - Land compensation
Management Center than 3 years
CHU KONG RIVER
TRADE TERMINAL 2-3 years, more
Related party 32,841,079.20 3.06 - Loan
than 3 years
CO.，LTD.
Port de Djibouti S.A. Related party 24,776,520.00 More than 3 years 2.31 - Loan
Total —— 799,405,012.13 —— 74.48 589,112,545.76 ——
(1) Inventories by category
Closing Balance Opening Balance
Provision for Provision for
Item Carrying Carrying
Book value impairment of Book value impairment of
amount amount
inventories inventories
Raw materials 288,836,266.55 524,634.82 288,311,631.73 261,972,849.28 1,153,436.72 260,819,412.56
Finished goods 9,419,494.95 - 9,419,494.95 4,683,965.30 - 4,683,965.30
Others 9,485,298.47 - 9,485,298.47 4,454,642.48 - 4,454,642.48
Total 307,741,059.97 524,634.82 307,216,425.15 271,111,457.06 1,153,436.72 269,958,020.34
(2) Provision for impairment of inventories
Increase Decrease Effect of
translation of
financial
Category Opening Balance Reversal or Closing Balance
Provision Others Others statements
charge-off
denominated in
foreign currencies
Raw materials 1,153,436.72 - - 510,114.09 113,192.30 -5,495.51 524,634.82
- 89 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Provision for impairment of inventories - continued
Provision for impairment inventories is made on an item-by-item basis and no provision for
impairment of inventories is made on a portfolio basis. The reason for the write off of provision for
impairment of inventories in this year is requisition and consumption.
(3) As at 31 December 2025, the Group has no capitalised borrowing cost in the balance of
inventories.
Item Closing Balance Opening Balance
Long-term receivables due within one year - 35,033,025.11
Less: Provision for bad debts - 35,033.03
Carrying amount - 34,997,992.08
Item Closing Balance Opening Balance
Input VAT to be deducted and certified 107,448,766.71 110,187,182.64
Prepaid taxes 51,499,208.46 140,440,401.53
Others - 1,070,228.60
Sub-total 158,947,975.17 251,697,812.77
Less: Provision for impairment - -
Total 158,947,975.17 251,697,812.77
(1) Details of long-term receivables
Closing Balance Opening Balance Range of
discount rate
Item Provision for Carrying Provision for Carrying
Book value Book value at the end of
bad debts amount bad debts amount
year
Advances to
Shareholders 1,306,312,715.28 1,306,312.72 1,305,006,402.56 1,135,688,750.65 1,135,688.75 1,134,553,061.90 3.00%-8.36%
(Note 1)
Land
compensation
receivable
(Note 2)
Others 708,784.63 539.73 708,244.90 889,232.97 720.17 888,512.80
Total 3,938,953,499.91 64,436,852.45 3,874,516,647.46 3,778,509,983.62 1,136,408.92 3,777,373,574.70
- 90 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Note 1: It mainly represents the aggregate principal and interest receivable from Port of Newcastle
and Terminal Link SAS, equivalent to RMB 1,032,950,257.96 and RMB 239,062,457.32,
respectively.
On 14 June 2018, China Merchants Port Holdings Company (hereinafter referred to as
"CM Port"), a subsidiary of the Company, provided a long-term loan to Port of Newcastle,
which signed in 2023 and has been extended to 31 December 2034. The loan carries
interest at a rate of weighted average interest rate on debt as determined by local authority
of Port of Newcastle plus 0.5%.
On 31 May 2023, CM Port, a subsidiary of the Company, provided a long-term loan to
Terminal Link SAS for making additional capital injection to Saigang project and charged
interest to Terminal Link SAS at an interest rate of 6.15%.
Note 2: On 5 November 2019, Shantou CM Port Group Co., Ltd. (hereinafter referred to as
"Shantou Port"), a subsidiary of the Company entered into the Contract for the Acquisition
of State-Owned Land Use Rights in Shantou with Shantou Land Reserve Center. Pursuant
to the contract, the land and attached buildings of approximately 370.96 mu located in
Zhuchi Deepwater Port on the south of Zhongshan East Road of Shantou should be
returned to Shantou Land Reserve Center by Shantou Port, which is amounting to
RMB1,558,032,000.00. Among them, 183.63 mu of land and attached buildings have been
transferred in 2019, and the remaining 187.33 mu of land and attached buildings have
been transferred in 2020. As at 31 December 2025, the land compensation of RMB
On 21 August 2020, Shantou Port and Shantou Haojiang District Land Reserve Center
signed the Shantou City State owned Land Use Right Purchase Contract, which stipulates
that Shantou Port will hand back 152.34 mu of land and attached buildings located in
Wutian Farm, Yushi, Haojiang District, Shantou City to Shantou Haojiang District Land
Reserve Center at a price of RMB 250,000,000.00. The above land and attached buildings
have been handed over before 31 December 2020. As at 31 December 2025, the land
compensation of RMB 200,000,000.00 has not yet been recovered.
On 22 December 2020, Shantou Port entered into the Contract for the Acquisition of State-
Owned Land Use Rights in Shantou with Shantou Land Reserve Center. Pursuant to the
contract, the land and attached buildings of approximately 648.78 mu located in Zhuchi
Deepwater Port of Shantou should be returned to Shantou Land Reserve Center by
Shantou Port, which is amounting to RMB 2,724,876,000.00. Among them, 320 mu of
land and attached buildings were transferred by 31 December 2020, which is amounting
to RMB 1,344,000,000.00, and the remaining 328.78 mu of land and attached buildings
have not been transferred. As at 31 December 2025, the land compensation of RMB
- 91 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Note 2-continued: The Group taking into account the historical repayment situation and future
outlook, the Group estimates the difference between the present value of the cash flows expected
to be received and the book value as a whole, and accordingly makes provision for credit
impairment loss. As of 31 December 2025, the Group has accrued corresponding credit impairment
losses of RMB 63,130,000.00.
(2) Long-term receivables disclosed by method of provision for bad debts
Closing Balance Opening Balance
Book value Provision for bad debts Book value Provision for bad debts
Category Carrying Carrying
Proportion Proportion Proportion Proportion
Amount Amount amount Amount Amount amount
(%) (%) (%) (%)
Provision for bad
debts assessed on 3,938,953,499.91 100.00 64,436,852.45 1.64 3,874,516,647.46 3,778,509,983.62 100.00 1,136,408.92 0.03 3,777,373,574.70
a portfolio basis
Total 3,938,953,499.91 100.00 64,436,852.45 1.64 3,874,516,647.46 3,778,509,983.62 100.00 1,136,408.92 0.03 3,777,373,574.70
(3) Details of provision for bad debts
Changes for the year
Effect of
Opening Closing
Category Recovery or Charge-off or changes in the
Balance Provision Balance
reversal write-off scope of
consolidation
Advances to shareholders 1,135,688.75 170,623.97 - - - 1,306,312.72
Guarantees for finance
leases
Land compensation
- 63,130,000.00 - - - 63,130,000.00
receivable
Total 1,136,408.92 63,300,623.97 180.44 - - 64,436,852.45
(4) There are no long-term receivables written off during the year.
- 92 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Classification of long-term equity investments
Effect of translation
Other increase of financial
Item Opening Balance Increase Decrease (decrease expressed statements Closing Balance
with "-") denominated in
foreign currencies
Investment in joint ventures 9,315,986,527.94 - - -70,925,588.03 24,951,052.36 9,270,011,992.27
Investment in associates 91,037,465,629.64 65,424,356.69 -136,244,155.23 3,441,694,812.60 -269,889,343.76 94,138,451,299.94
Sub-total 100,353,452,157.58 65,424,356.69 -136,244,155.23 3,370,769,224.57 -244,938,291.40 103,408,463,292.21
Less: provision for impairment of
long-term equity investments
Total 100,018,029,894.96 65,424,356.69 -136,244,155.23 3,370,769,224.57 -244,879,256.12 103,073,100,064.87
- 93 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Details of long-term equity investments
Changes for the year
Effect of
translation of Provision for
Investment Share of other Share of other Cash dividends financial impairment at
Investees Investment cost Opening Balance Increase in Decrease in Provision for Closing Balance
income under comprehensiv changes in or profits statements Other the end of the
investments investments impairment
equity method e income equity declared denominated in year
foreign
currencies
I. Joint ventures
Euro-Asia Oceangate S.à r.l. 2,425,579,513.09 2,275,132,823.96 - - 119,622,314.51 34,069,994.14 - -129,199,356.07 - -50,543,475.84 - 2,249,082,300.70 -
Port of Newcastle 2,228,913,892.38 1,939,252,174.56 - - 40,887,494.82 17,051,668.46 - -21,886,886.16 - 83,135,610.92 - 2,058,440,062.60 -
Others 3,840,805,612.09 5,093,488,046.78 - - 138,570,683.60 9,270,900.18 1,159,124.17 -280,471,525.68 - -7,641,082.72 - 4,954,376,146.33 8,113,482.64
Sub-total 8,495,299,017.56 9,307,873,045.30 - - 299,080,492.93 60,392,562.78 1,159,124.17 -431,557,767.91 - 24,951,052.36 - 9,261,898,509.63 8,113,482.64
II. Associates
Shanghai Port Group 10,907,913,439.36 40,042,373,774.56 - 3,803,684,721.55 3,120,383.06 -393,064,045.30 -1,273,606,004.78 - - - 42,182,508,829.09 -
Ningbo Zhoushan Port Company Limited
(hereinafter referred to as "Ningbo 16,958,018,515.43 19,421,486,011.70 - - 1,191,694,841.30 -23,906,992.04 28,414,378.80 -619,547,445.81 - - - 19,998,140,793.95 -
Zhoushan")
Shenzhen China Merchants Qianhai
Industrial Development Co., Ltd.
Terminal Link SAS 5,980,765,880.26 6,168,712,893.68 - - 492,759,579.32 463,349,744.07 - -439,601,892.73 - -145,209,814.85 - 6,540,010,509.49 -
Nanshan Group 2,182,780,419.00 6,033,520,232.11 - - 33,928,156.72 -532,286.23 -7,074,950.35 -37,014,000.00 - - - 6,022,827,152.25 -
Liaoning Port 3,731,548,568.95 4,250,226,314.79 - - 148,400,755.75 -2,066,959.60 -27,185,456.84 -64,882,190.40 - - - 4,304,492,463.70 324,913,116.66
Others 7,743,563,248.32 7,383,916,763.74 65,424,356.69 -136,244,155.23 223,516,166.60 28,862,479.03 -364,789.63 -226,823,307.68 - -124,620,493.63 -2,028,034.28 7,211,638,985.61 2,336,628.04
Sub-total 54,351,170,361.93 90,710,156,849.66 65,424,356.69 -136,244,155.23 6,035,646,183.31 468,826,368.29 -399,274,863.32 -2,661,474,841.40 - -269,830,308.48 -2,028,034.28 93,811,201,555.24 327,249,744.70
Total 62,846,469,379.49 100,018,029,894.96 65,424,356.69 -136,244,155.23 6,334,726,676.24 529,218,931.07 -398,115,739.15 -3,093,032,609.31 - -244,879,256.12 -2,028,034.28 103,073,100,064.87 335,363,227.34
- 94 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(3) Changes in provision for impairment of long-term equity investments are as follows
Decrease Effect of
translation of
Effect of changes financial
Item Opening Balance in the scope of Increase Reasons for statements Closing Balance
consolidation Decrease denominated in
reduction
foreign
currencies
Liaoning Port 324,913,116.66 - - - - - 324,913,116.66
Silk Road Yishang Information Technology
Co., Ltd.
HOA THUONG CORPORATION 2,395,663.32 - - - - -59,035.28 2,336,628.04
Total 335,422,262.62 - - - - -59,035.28 335,363,227.34
- 95 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Details of investments in other equity instruments4
Dividend income Other comprehensive Amount transferred from Reasons for transferring
Closing Opening Other comprehensive
Item recognised income at the end of Reasons for designation other comprehensive income other comprehensive income
Balance Balance income during the year
during the year the year to retained earnings to retained earnings
China Ocean Shipping It is a non-trading equity
Agency Shenzhen Co., Ltd. instrument investment
It is a non-trading equity
Others 11,766,365.15 9,725,367.38 120,000.00 2,040,997.77 2,738,865.15 - ——
instrument investment
Total 141,766,365.15 139,451,887.05 9,784,500.00 2,314,478.10 119,228,865.15 -
(2) There are no other equity instruments derecognised for the year.
- 96 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Item Closing Balance Opening Balance
Financial assets at FVTPL 28,768,810.95 28,524,600.31
Including: Investments in equity instruments 28,768,810.95 28,524,600.31
Total 28,768,810.95 28,524,600.31
(1) Investment properties measured at cost
Buildings and
Item Land use rights Total
structures
I. Cost —— —— ——
As at 1 January 2025 136,657,995.75 4,319,416,172.19 4,456,074,167.94
Decrease for the year - -552,235.00 -552,235.00
Other decreases -6,404,821.25 - -6,404,821.25
As at 31 December 2025 130,253,174.50 4,318,863,937.19 4,449,117,111.69
II. Accumulated depreciation
—— —— ——
and amortisation
As at 1 January 2025 50,135,665.57 1,117,248,431.77 1,167,384,097.34
Increase for the year 2,498,871.95 123,539,464.13 126,038,336.08
Transfer from investment
- -161,287.68 -161,287.68
properties to fixed assets
Other decreases -2,095,357.83 - -2,095,357.83
As at 31 December 2025 50,539,179.69 1,240,626,608.22 1,291,165,787.91
III. Impairment provision —— —— ——
As at 1 January 2025 - - -
As at 31 December 2025 - - -
IV. Carrying amount —— —— ——
As at 1 January 2025 86,522,330.18 3,202,167,740.42 3,288,690,070.60
As at 31 December 2025 79,713,994.81 3,078,237,328.97 3,157,951,323.78
- 97 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Investment properties without ownership certificates
Item Book value Reasons for not obtaining certificate of title
Buildings, structures,
and land use rights
Item Closing Balance Opening Balance
Fixed assets 30,442,667,834.87 30,688,591,344.25
Disposal of fixed assets 216,462.95 626,447.20
Total 30,442,884,297.82 30,689,217,791.45
(1) Details of fixed assets
Machinery and
Port and terminal equipment, furniture, Motor vehicles and
Item Buildings and structures Total
facilities fixture and other cargo ships
equipment
I. Cost —— —— —— —— ——
As at 1 January 2025 32,465,773,556.56 3,694,135,032.52 17,385,378,609.69 2,287,212,824.87 55,832,500,023.64
Effect of changes in the scope of
- - 215,249.81 516,249.00 731,498.81
consolidation
Purchase 22,456,341.77 280,278.30 250,090,443.99 30,375,360.77 303,202,424.83
Transfer from construction in progress 742,467,838.37 18,967,065.64 580,239,918.77 38,919,621.37 1,380,594,444.15
Other increase 7,786,816.62 714,111.14 2,056,584.47 - 10,557,512.23
Decrease for the year -44,538,254.20 -1,289,366.12 -197,852,670.99 -7,006,759.47 -250,687,050.78
Reclassification -18,633,509.76 - 18,304,489.76 329,020.00 -
Others decreases -2,143,215.25 -25,287.94 -1,207,735.94 - -3,376,239.13
Effect of translation of financial statements
denominated in foreign currencies
As at 31 December 2025 33,277,988,553.01 3,709,278,075.43 18,157,238,030.56 2,333,763,636.87 57,478,268,295.87
II. Accumulated depreciation —— —— —— —— ——
As at 1 January 2025 11,530,007,770.51 1,078,040,229.08 11,097,200,518.48 1,225,369,778.26 24,930,618,296.33
Effect of changes in the scope of
- - 215,249.81 516,249.00 731,498.81
consolidation
Increase for the year 982,069,480.63 128,812,339.20 830,998,991.83 107,657,947.53 2,049,538,759.19
Others increase - 714,111.14 - - 714,111.14
Decrease for the year -39,422,062.24 -1,086,506.44 -179,829,413.57 -6,710,140.16 -227,048,122.41
Reclassification -3,892,300.23 - 3,762,063.23 130,237.00 -
Other decreases -155,801.87 -15,045.48 -1,166,961.65 - -1,337,809.00
Effect of translation of financial statements
denominated in foreign currencies
As at 31 December 2025 12,482,177,493.56 1,204,790,144.49 11,815,544,282.41 1,320,807,857.11 26,823,319,777.57
III. Impairment provision —— —— —— —— ——
As at 1 January 2025 196,464,146.22 9,414,527.47 7,411,709.37 - 213,290,383.06
As at 31 December 2025 196,464,146.22 9,414,527.47 6,402,009.74 - 212,280,683.43
IV. Carrying amount —— —— —— —— ——
As at 1 January 2025 20,739,301,639.83 2,606,680,275.97 6,280,766,381.84 1,061,843,046.61 30,688,591,344.25
As at 31 December 2025 20,599,346,913.23 2,495,073,403.47 6,335,291,738.41 1,012,955,779.76 30,442,667,834.87
Including: Carrying amount of fixed assets
pledged at the end of the year
- 98 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) The Group has no fixed assets that are temporarily idle as at 31 December 2025.
(3) Fixed assets leased out under operating leases
Carrying amount of Carrying amount of
Item
closing balance opening balance
Buildings and structures 180,145,890.02 185,465,560.82
Port and terminal facilities 30,385,645.46 41,979,439.95
Machinery and equipment, furniture, fixture and other equipment 1,346,838.39 10,203,232.09
Total 211,878,373.87 237,648,232.86
(4) Fixed assets without ownership certificates
Carrying amount of Carrying amount of
Item Remark
closing balance opening balance
This is mainly due to the fact that certain buildings
Buildings, structures,
and structures have not yet obtained the land use
port and terminal 1,264,731,872.19 1,357,929,730.13
rights of the corresponding land and the approval
facilities
procedures have not yet been completed.
(5) The details of the Group's fixed assets with restricted ownership as at 31 December 2025
are set out in Note (VIII) 65.
Item Closing Balance Opening Balance
Machinery and equipment, furniture, fixture
and other equipment
Total 216,462.95 626,447.20
(1) Presentation of construction in progress
Item Closing Balance Opening Balance
Construction in progress 3,399,698,342.95 3,296,562,213.14
Materials for construction in progress 3,885,088.53 14,547,783.45
Total 3,403,583,431.48 3,311,109,996.59
- 99 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Details of construction in progress
Closing Balance Opening Balance
Item Provision for Carrying Provision for Carrying
Book value Book value
impairment amount impairment amount
Port and terminal
facilities
Infrastructure 1,172,459,051.94 - 1,172,459,051.94 608,560,125.43 - 608,560,125.43
Berths and yards 20,857,215.96 - 20,857,215.96 475,884,349.47 - 475,884,349.47
Cargo ships under
construction
Others 199,645,516.48 3,505,830.33 196,139,686.15 241,750,332.70 778,478.53 240,971,854.17
Total 3,406,110,590.02 6,412,247.07 3,399,698,342.95 3,297,340,691.67 778,478.53 3,296,562,213.14
- 100 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(3) Changes of significant construction in progress
Effect of
translation of Proportion of Interest
Amount of Including:
Other financial accumulated capitalization
Opening Increase for the Transfer to Construction accumulated Capitalised Capital
Item Budget amount decreases for statements Closing Balance construction rate for the
Balance year fixed assets progress (%) capitalised interest for source
the year denominated investment in current year
interest the year
in foreign budget (%) (%)
currencies
Zhanjiang Port Baoman Port Area
Own funds
Container Terminal Phase I 2,342,775,800.00 597,781,190.31 577,145,482.11 - 6,808,148.28 - 1,168,118,524.14 50.15 50.15 14,579,765.90 10,425,895.30 2.60
and loans
Expansion Project
Zhanjiang Port Donghai Island Port Own funds
Area Grocery Wharf Project and loans
Reconstruction project of HIPG
container, oil terminal and tank area
Subsequent construction in progress of
HIPG wharf
Phase III Expansion Project of Bulk
Grain Warehouse at 2 # and 3 # Own funds
Berths in Xinshanan Operation Area and loans
of Machong Port
Dachanwan phase II project 6,201,904,300.00 94,110,621.23 69,570,517.25 - - - 163,681,138.48 2.64 2.64 - - - Own funds
The Project of Zhanjiang Port 21#
Own funds
Warehouse and Substation 117,110,000.00 19,044,357.57 50,105,982.72 - - - 69,150,340.29 59.05 59.05 - - -
and loans
Renovation and Expansion
Back land reclamation project on
Haidagan Bulk Yard and Supporting 82,400,000.00 63,924,781.40 1,674,220.80 - - - 65,599,002.20 79.61 79.61 - - - Own funds
Facilities and Liquid Bulk Berth
Guang'ao Phase III Project 3,573,290,000.00 21,015,693.05 34,358,992.00 46,398.23 - - 55,328,286.82 1.55 1.55 - - - Own funds
Full rotation tugboat construction
project
Phase II of the second phase of the
wharf project in the local operation Own funds
area of the port area of Goshan Port is and loans
controlled in sequence
Phase I of the second phase of the
wharf project in the local operation Own funds
area of Goshan Port Area is controlled and loans
in sequence
Phase II warehouse of Djibouti Free
Trade Zone Bonded Logistics Park
Total 19,647,262,628.92 3,064,347,868.34 1,356,935,700.77 1,184,600,569.41 22,511,892.53 -21,326,347.15 3,192,844,760.02 —— —— 93,108,021.05 22,618,822.37 —— ——
- 101 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
（1） Details of right-of-use assets
Machinery and
Motor
Port and equipment,
Buildings and vehicles, cargo
Item terminal furniture, Land use rights Total
structures ships and
facilities fixture and
others
other equipment
I. Cost —— —— —— —— —— ——
As at 1 January 2025 6,494,856,616.10 154,067,861.90 5,409,429.14 3,718,797,951.13 6,177,384.73 10,379,309,243.00
Increase for the year 549,439,446.27 159,501.39 - - 5,544,571.44 555,143,519.10
Decrease for the year 21,169,292.10 22,590,971.87 4,074,353.01 2,408,655.71 2,429,545.28 52,672,817.97
Effect of translation of financial
statements denominated in foreign -141,921,453.30 -2,989,569.29 -35,450.47 -99,894,244.63 - -244,840,717.69
currencies
As at 31 December 2025 6,881,205,316.97 128,646,822.13 1,299,625.66 3,616,495,050.79 9,292,410.89 10,636,939,226.44
II. Accumulated depreciation —— —— —— —— —— ——
As at 1 January 2025 928,160,476.79 37,043,873.94 4,164,300.68 448,828,617.90 3,759,910.15 1,421,957,179.46
Increase for the year 243,359,988.66 11,539,278.06 1,040,297.77 68,752,784.95 4,182,723.44 328,875,072.88
Decrease for the year 21,169,292.10 15,153,130.14 4,074,353.01 2,306,514.00 2,429,545.28 45,132,834.53
Effect of translation of financial
statements denominated in foreign -22,000,310.91 -863,353.80 -29,607.19 -11,171,847.64 - -34,065,119.54
currencies
As at 31 December 2025 1,128,350,862.44 32,566,668.06 1,100,638.25 504,103,041.21 5,513,088.31 1,671,634,298.27
III. Impairment provision —— —— —— —— —— ——
As at 1 January 2025 - - - - - -
As at 31 December 2025 - - - - - -
IV. Carrying amount —— —— —— —— —— ——
As at 1 January 2025 5,566,696,139.31 117,023,987.96 1,245,128.46 3,269,969,333.23 2,417,474.58 8,957,352,063.54
As at 31 December 2025 5,752,854,454.53 96,080,154.07 198,987.41 3,112,392,009.58 3,779,322.58 8,965,304,928.17
- 102 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Details of intangible assets
Effect of translation
Effect of
of financial
changes in the Increases for the Decreases for
Item Opening Balance statements Closing Balance
scope of year the year
denominated in
consolidation
foreign currencies
I. Total cost 24,970,846,065.14 18,846.02 570,374,124.84 113,959,773.04 734,394,696.81 26,161,673,959.77
Including: Land use rights 14,063,421,368.77 - 209,593,892.64 99,171,492.17 -5,935,472.08 14,167,908,297.16
Terminal operating right 9,319,595,026.35 - 21,629,345.87 - 688,165,407.41 10,029,389,779.63
Self developed data
resources
Other 1,581,490,047.40 18,846.02 339,150,886.33 14,788,280.87 52,164,761.48 1,958,036,260.36
II. Total accumulated 8,460,808,109.75
amortisation
Including: Land use rights 4,605,959,694.01 - 333,999,630.84 23,422,404.94 -3,073,440.05 4,913,463,479.86
Terminal operating right 2,356,430,281.06 - 310,988,454.55 - 162,685,538.12 2,830,104,273.73
Self developed data
resources
Other 616,274,894.81 10,051.20 92,324,418.36 14,639,430.31 22,547,073.27 716,517,007.33
III. Total impairment provision 57,010,270.07 - - - - 57,010,270.07
Including: Land use rights 44,199,381.24 - - - - 44,199,381.24
Terminal operating right - - - - - -
Self developed data
- - - - - -
resources
Other 12,810,888.83 - - - - 12,810,888.83
IV. Total carrying amount 17,335,082,422.84 —— —— —— —— 17,643,855,579.95
Including: Land use rights 9,413,262,293.52 —— —— —— —— 9,210,245,436.06
Terminal operating right 6,963,164,745.29 —— —— —— —— 7,199,285,505.90
Self developed data
resources
Other 952,404,263.76 —— —— —— —— 1,228,708,364.20
(2) Land use rights without ownership certificates as at 31 December 2025
Carrying amount Carrying amount
Item
of closing balance of opening balance
Land use rights (Note) 1,643,722,609.93 1,889,916,568.77
- 103 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Land use rights without ownership certificates as at 31 December 2025 - continued
Note: As at 31 December 2025, the land use rights without ownership certificates mainly represent
the land use rights for berth and storage yard within Chiwan Port area obtained by the Group
from Nanshan Group, with an area of 690,161.97 m2, and Dachanwan Port area Phase II
land use rights obtained by Ansujie Port Warehousing Services (Shenzhen) Co., Ltd.
(hereinafter referred to as "ASJ") , the costs of which are RMB 1,179,538,483.36 and RMB
The land use rights for berth and storage yard within Chiwan Port area obtained by the
Group from Nanshan Group represent the capital contribution from Nanshan Group to the
Company upon restructuring of the Company, while the remaining land use rights are
obtained from Nanshan Group by way of long-term lease. Up to date, Nanshan Group has
not yet obtained the land use rights in respect of the lands within Chiwan watershed,
including aforementioned capital contribution and land lease to the Group, therefore, the
Group cannot obtain the ownership certificate for relevant land and buildings on such land.
The Company's management understood that Nanshan Group is negotiating with relevant
government departments regarding the historical issues, and the date when the Group can
obtain the ownership certificate of relevant land and buildings on such land cannot be
estimated reliably.
The property rights certificate for the second phase land use right of Dachanwan Port Area
obtained by ASJ will be processed after the completion of sea reclamation.
(3) The details of the Group's intangible assets with restricted ownership as at 31 December
(1) Details of goodwill
Effect of translation of
financial statements
Investee Sources Opening Balance Increase Decrease Closing Balance
denominated in foreign
currencies
TCP Acquisition of equity 2,369,714,257.24 - - 237,924,336.90 2,607,638,594.14
Mega Shekou Container
Terminals Limited (hereinafter Acquisition of equity 1,815,509,322.42 - - - 1,815,509,322.42
referred to as "Mega SCT")
CM Port Acquisition of equity 993,992,000.00 - - - 993,992,000.00
Shantou Port Acquisition of equity 552,317,736.65 - - - 552,317,736.65
Zhanjiang Port Acquisition of equity 418,345,307.68 - - - 418,345,307.68
Shenzhen Mawan Project Acquisition of equity 408,773,001.00 - - - 408,773,001.00
Others Acquisition of equity 345,322,348.68 6,718,413.80 - -1,537,629.27 350,503,133.21
Sub-total —— 6,903,973,973.67 6,718,413.80 - 236,386,707.63 7,147,079,095.10
Provision for impairment of goodwill —— 970,663,044.33 - - - 970,663,044.33
Total —— 5,933,310,929.34 6,718,413.80 - 236,386,707.63 6,176,416,050.77
- 104 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Provision for impairment of goodwill
Effect of
translation of
Effect of changes
Opening financial
Investee in the scope of Provision Decrease Closing Balance
Balance statements
consolidation
denominated in
foreign currencies
Shantou Port 552,317,736.65 - - - - 552,317,736.65
Zhanjiang Port 418,345,307.68 - - - - 418,345,307.68
Total 970,663,044.33 - - - - 970,663,044.33
(3) Information of asset groups or portfolio of asset groups to which the goodwill belongs
Composition of asset groups or portfolio of asset Is it consistent with that of the
Name
groups to which it is allocated and its basis prior year?
TCP Yes
Mega SCT The Group identifies asset groups or portfolio of asset Yes
CM Port groups based on their ability to generate cash inflows Yes
Shantou Port independently, the manner in which they manage their Yes
Zhanjiang Port production and operating activities, and the unified Yes
Shenzhen Mawan Project decision-making on use or disposal of assets. Yes
Others Yes
When testing the goodwill for impairment, the Group compares the carrying amount of related asset
groups and portfolio of asset groups (including goodwill) with the recoverable amount. If the
recoverable amount is less than the carrying amount, the difference is included in profit or loss for
the period. The Group determines the recoverable amount of the asset groups and portfolio of asset
groups that generate goodwill at fair value less cost of disposal or at present value of expected future
cash flows. The fair value is determined using market approach. The present value of cash flows is
estimated based on the forecast of cash flows for the projection period between 5 years to 23 years
and steady period. The estimated future cash flows for the projection period are based on the
business plan established by the management; the expected future cash flows for the steady period
are determined in conjunction with the level of the final year of the projection period, combined
with the Group's business plans, industry trends and inflation rates. The growth rate adopted will
not exceed the long-term average growth rate of the country where the asset groups and portfolio
of asset groups are located. The key assumptions used by the Group in estimating the present value
of future cash flows include growth rate and discount rate etc. The pre-tax discount rate and the
growth rate adopted are 9.44%-23.25% and 1.89%-2.52% respectively. The parameters of key
assumptions determined by the Group's management are in line with the Group's historical
experience or external source of information.
- 105 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(4) Specific method for determination of recoverable amount
The recoverable amount is determined at the present value of expected future cash flows
Key parameters for projection Basis to determine the key parameters Key parameters for steady Basis to determine the key parameters for steady
Item Projection period
period for projection period period period
reflects the specific risks of the underlying asset
Mega SCT 5 years projection period: 0.01% underlying asset group or combination for steady period: 1.89%
group or combination of asset groups
projection period: 41.16% 2. Average revenue growth rate for steady period: 40.17%
China's forward inflation rate published by the
projection period and average profit 1. Pre-tax discount rate: Not
margin for projection period: Taking applicable
into account comprehensive factors such 2. Average revenue growth rate
TCP 23 years (Note) projection period: 5.01% account comprehensive factors such as each
as each company's business operations, for steady period: Not applicable
performance, key financial indicators 3. Average profit margin for
projection period: 59.67% financial indicators and market environment
and market environment steady period: Not applicable
Note: The franchise right of TCP, a subsidiary of the Group, to Paranagua Port will expire in October 2048. TCP predicts the future cash flow based
on the remaining years of the franchise right.
- 106 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Presentation of long-term deferred expenses:
Opening Increase for Amortisation Other
Item Closing Balance Reason for other decreases
Balance the year in the year decreases
Tonggu channel widening project
(Note 1)
West public channel widening
project at West port area (Note 2)
Dredging project 65,783,053.94 8,380,006.13 24,458,611.73 5,534.99 49,698,913.35 Settlement Variance
Relocation project of Nanhai Rescue
Bureau
Expenditures for the improvement of
leased fixed assets
Others 162,829,634.27 65,638,880.70 50,942,876.60 90,556.97 177,435,081.40 Settlement Variance
Total 940,404,479.94 81,005,670.22 100,971,541.50 719,363.48 919,719,245.18
Note 1: This represents the Group's actual expenses on Shenzhen Western Port Area Tonggu
Channel 210-270M Widening Project. According to relevant resolutions of Shenzhen
Municipal Government, the enterprise and government shall bear 60% and 40% of the
expenses incurred for the 210-240M widening project, and 50% and 50% of the expenses
incurred for the 240-270M widening project respectively. The Company's subsidiary has
included the expenses on deepening the channel in the item of " long-term deferred
expenses ", and amortised such expenses over the expected useful lives of the two
widening projects of 35 and 40 years using straight-line method since the completion of
each project in 2008 and 2019, respectively.
Note 2: This represents the Group's actual expenses on Shenzhen West Port Area Public Channel
Widening Project, of which the widening of 240-270M in the first section was completed
on 1 June 2019 and the widening of 240-270M in the second and third sections was
completed on 5 November 2020. According to relevant resolutions of Shenzhen Municipal
Government, the enterprise and government shall bear 50% and 50% of the expenses
incurred for the project respectively. The Company's subsidiary has included the expenses
on deepening the channel in the item of " long-term deferred expenses ", and amortised
such expenses over the expected useful life of 40 years using straight-line method since
the completion of each section of the channel widening project.
- 107 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Deferred tax assets before offsetting
Closing Balance Opening Balance
Deductible Deductible
Item Deferred tax Deferred tax
temporary temporary
assets assets
differences differences
Lease liabilities 295,871,432.32 1,367,303,811.47 163,857,577.86 666,428,741.59
Unrealized profit 179,593,057.91 734,475,385.57 181,536,190.45 742,725,529.54
Terminal operating right 223,733,018.15 745,776,727.15 217,563,517.06 725,211,723.54
Depreciation of fixed assets 40,471,835.50 191,301,536.12 38,716,737.33 180,532,470.26
Provision for bad debts 9,161,395.67 41,122,248.17 18,830,890.39 84,382,905.10
Accrued and unpaid wages 15,275,295.00 73,422,009.38 21,864,895.76 104,332,100.77
Estimated liabilities 28,614,938.41 90,185,667.85 24,250,379.90 72,335,644.41
Deductible losses 15,925,668.89 106,171,125.93 5,384,926.28 35,370,822.19
Deferred income 7,151,504.28 30,286,075.45 8,571,871.40 36,119,190.53
Amortisation of computer software 2,269,985.97 13,606,231.50 1,226,964.34 6,236,548.44
Provision for impairment of assets 673,227.45 3,364,804.44 690,206.29 3,477,996.67
Others 41,142,857.64 165,309,874.90 22,429,487.85 98,150,808.94
Total 859,884,217.19 3,562,325,497.93 704,923,644.91 2,755,304,481.98
(2) Deferred tax liabilities before offsetting
Closing Balance Opening Balance
Item Deferred tax Taxable temporary Deferred tax Taxable temporary
liabilities differences liabilities differences
Withholding dividend income tax 3,258,707,299.23 48,419,673,418.17 3,127,746,150.78 45,628,599,622.34
Right-of-use assets 377,554,058.21 1,607,827,870.66 257,345,925.13 972,527,705.73
Terminal operating right 80,273,769.35 267,579,231.18 82,096,512.01 273,655,040.04
Fair value adjustment of assets acquired
from business combination
Depreciation of fixed assets 281,321,320.16 1,004,405,641.73 257,210,035.67 934,419,445.82
Changes in fair value of investments in
other equity instruments
Valuation of financial assets held for
trading
Others 119,049,568.27 1,060,609,222.61 126,835,982.94 1,026,333,384.24
Total 5,373,562,664.38 57,332,718,389.98 5,135,427,770.73 53,816,434,078.55
(3) Deferred tax assets or liabilities that are presented at the net amount after offsetting
Offset amount of Balance of deferred Offset amount of Balance of deferred
deferred tax assets tax assets or deferred tax assets tax assets or
Item and liabilities at the liabilities after and liabilities at the liabilities after
end of the current offsetting at the end end of the prior offsetting at the end
year of the current year year of the prior year
Deferred tax assets -504,396,695.35 355,487,521.84 -339,442,437.14 365,481,207.77
Deferred tax liabilities -504,396,695.35 4,869,165,969.03 -339,442,437.14 4,795,985,333.59
- 108 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(4) Details of unrecognised deferred tax assets
Item Closing Balance Opening Balance
Deductible temporary differences 1,088,193,612.07 1,126,951,677.30
Deductible losses 1,247,132,283.40 1,637,807,708.04
Total 2,335,325,895.47 2,764,759,385.34
The Group recognises deferred income tax assets to the extent of future taxable income that is likely
to be obtained to offset the deductible temporary differences and deductible losses. For the excess
of deductible temporary differences and deductible losses over future taxable income, no deferred
tax assets are recognised.
(5) Deductible losses for which deferred tax assets are not recognised will be expired in the
following years:
Year Closing Balance Opening Balance
Total 1,247,132,283.40 1,637,807,708.04
Item Closing Balance Opening Balance
Advances for the channel project (Note 1) 793,174,860.33 1,037,329,218.89
Prepayments for fixed assets 67,035,987.35 117,351,349.97
Prepayments for terminal operating right 32,437,050.53 28,542,865.38
Others 637,756.68 14,325,919.01
Sub-total 893,285,654.89 1,197,549,353.25
Less: provision for impairment (Note 1, Note 2) 174,364,111.91 88,524,171.44
Total 718,921,542.98 1,109,025,181.81
Note 1: This represents that the Company's subsidiary Zhanjiang Port, upon its reorganization into
a joint stock company in 2007, signed the Channel Arrangement Agreement with State-
owned Assets Supervision and Administration Commission of Zhanjiang (hereinafter
referred to as "Zhanjiang SASAC") and China Merchants International Terminal
(Zhanjiang) Co., Ltd. According to the agreement, the channel belongs to Zhanjiang
SASAC, therefore, the Group presented the advances of channel project that should be
repaid by Zhanjiang SASAC as other non-current assets.
- 109 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Note 1: - continued
In 2025, Zhanjiang Port received a prepayment of RMB 267,849,800.00 from Zhanjiang
Port and Navigation Affairs Center for the waterway.
Note 2: Zhanjiang Port, a subsidiary of the Company, comprehensively considers the reasonable
and reliable information related to the credit risk status of the debtor, including the
payment period agreed in the contract, actual settlement period, the financial status of the
debtor, etc., estimates the present value of the difference between the contractual cash
flows of the waterway advance payment fee and the expected cash flow collected, and
makes provision for bad debts accordingly. As of 31 December 2025, the Group has
accrued corresponding credit impairment losses of RMB 174,364,111.91 (31 December
(1) Classification of short-term borrowings
Item Closing Balance Opening Balance
Credit borrowings 19,724,784,577.14 12,771,225,106.96
Mortgage borrowings (Note) 51,036,254.18 20,017,034.73
Total 19,775,820,831.32 12,791,242,141.69
Note: It is obtained by Guangdong Yide Port Co., Ltd. (hereinafter referred to as "Yide Port"), a
subsidiary of the Company, by mortgaging the land and fixed assets held by it.
(2) As at 31 December 2025, the Group has no short-term borrowings that are overdue.
Category Closing Balance Opening Balance
Bank acceptance - 1,536,194.00
Total - 1,536,194.00
- 110 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Item Closing Balance Opening Balance
Service fee 238,195,011.65 177,881,786.24
Material purchase fee 125,891,873.15 147,233,743.30
Construction fee 85,951,478.75 97,723,911.20
Equipment payments 40,330,021.94 79,246,916.34
Rental fee 15,440,269.10 19,621,514.17
Others 234,091,837.76 264,122,661.08
Total 739,900,492.35 785,830,532.33
(1) Aging of accounts payable
Closing Balance Opening Balance
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year (Including 1 year) 621,757,239.35 84.03 694,992,359.27 88.44
More than 3 years 35,866,478.91 4.85 32,625,478.61 4.15
Total 739,900,492.35 100.00 785,830,532.33 100.00
(2) Significant accounts payable aged more than 1 year
Name of entity Closing Balance Reason for outstanding
Shenzhen Nanshan District Treasury Payment Center 28,414,768.94 To be paid upon confirmation by both parties.
Quanzhou Antong Logistics Co., Ltd. 17,869,057.61 To be paid upon confirmation by both parties.
Sinopec Group Assets Operation Management
Co., Ltd.
Item Closing Balance Opening Balance
Rental fee received in advance 11,781,611.38 14,371,546.45
Others 409,843.14 204,691.39
Total 12,191,454.52 14,576,237.84
(1) Aging of advance payments received
Closing Balance Opening Balance
Aging Proportion Proportion
Amount Amount
(%) (%)
Within 1 year (Including 1 year) 11,444,067.35 93.87 13,621,118.48 93.45
Total 12,191,454.52 100.00 14,576,237.84 100.00
(2) As at 31 December 2025, the Group has no significant advance payments received aged
more than one year.
(3) For the year ended 31 December 2025, the Group has no advance payments received with
significant changes in carrying amount.
- 111 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Details of contract liabilities
Item Closing Balance Opening Balance
Unused sales discounts 264,529,928.79 123,329,461.62
Port and service fees collected in advance 167,813,038.98 123,282,437.42
Storage fees collected in advance 2,310,969.36 5,407,746.76
Others 12,169,011.66 15,868,626.82
Total 446,822,948.79 267,888,272.62
(2) Revenue recognised in the current year, including the book value of contract liabilities at
the beginning of the year
At the beginning of this year, the book value of contract liabilities was RMB 248,300,041.60, which
was recognised as revenue in this year, including unused sales discounts, advance collection of port
and service fees, advance collection of warehousing fees contracts, and advance collection for other
contracts that have been settled but not completed
(3) As at 31 December 2025, the Group has no significant contract liabilities aged more than
one year.
(4) Qualitative analysis of contract liabilities
Contract liabilities mainly refer to unused sales discounts and fees collected by the Group for
providing port services to customers. Unused sales discount refers to the sales discount withdrawn
by the Group on the date of financial statements for the sales contract that has fulfilled the
performance obligation and is used to deduct future service fees. Advance port and service fees
shall be collected according to the payment time agreed in the contract. The Group recognises
contract revenue according to the performance schedule, and contract liabilities will be recognised
as revenue after the Group performs its performance obligations.
(1) Employee benefits payable classification
Effect of changes
Opening Increase for the Decrease for the
Item in the scope of Closing Balance
Balance year year
consolidation
defined contribution plan
Total 1,168,592,349.15 888,451.87 3,802,393,211.02 3,674,039,332.84 1,297,834,679.20
- 112 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Presentation of short-term benefits
Effect of
Opening changes in the Increase for the Decrease for the
Item Closing Balance
Balance scope of year year
consolidation
allowances and subsidies
Including: Medical insurance and
maternity insurance 17,671,866.66 - 135,489,244.58 132,971,144.56 20,189,966.68
premiums
Work injury insurance - - 24,315,059.55 24,315,059.55 -
Others 3,611,796.15 - 21,404,234.77 22,043,738.62 2,972,292.30
education funds
Total 1,159,571,782.03 888,451.87 3,367,598,242.18 3,241,039,456.31 1,287,019,019.77
(3) Presentation of defined benefit plans
Effect of
Opening changes in the Increase for the Decrease for the
Item Closing Balance
Balance scope of year year
consolidation
Total 8,520,567.12 - 418,356,144.43 416,061,052.12 10,815,659.43
The Company and its domestic subsidiaries participate in the pension insurance and unemployment
insurance plan established by government institutions as required. According to such plans, the
Group contributes in proportion to the local government. The Group has established an enterprise
annuity system, accrues and pays the enterprise annuity according to the enterprise annuity system
of the Company and its domestic subsidiaries. In addition to above contributions, the Group has no
further payment obligations. The corresponding expenses are included in profit or loss for the period
or the cost of related assets when incurred.
Item Closing Balance Opening Balance
Enterprise income tax 758,576,333.33 576,840,455.26
VAT 24,055,651.28 33,120,467.83
Other taxes and surcharges 130,652,487.93 115,204,803.23
Total 913,284,472.54 725,165,726.32
- 113 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Presentation of other payables
Item Closing Balance Opening Balance
Dividends payable 135,169,470.79 132,334,744.28
Other payables 1,899,753,608.16 1,791,645,568.70
Total 2,034,923,078.95 1,923,980,312.98
(2) Dividends payable
Item Closing Balance Opening Balance
Ordinary share dividends 135,169,470.79 132,334,744.28
Including: China Merchants Zhangzhou Development
Zone Co., Ltd.
Yiu Lian Dockyards Limited 22,924,685.89 -
Qingdao Port (Group) Co., Ltd. 6,717,856.67 -
Zhanjiang Infrastructure Construction Investment
- 52,542,231.24
Group Co., Ltd.
Note: As at 31 December 2025, The Group has a total of RMB 79,792,513.04 of important
dividends payable with an aging of more than one year, all of which are dividends payable
to China Merchants Zhangzhou Development Zone Co., Ltd. The reason for the non-
disbursement is that the funding plan has not yet been arranged.
(3) Other payables
(a) Disclosure of other payables by nature
Item Closing Balance Opening Balance
Amount payable for construction and
quality warranty
Guarantees and deposits 207,608,168.44 271,312,443.95
Port construction and security fee 22,421,347.69 26,454,133.47
Others 838,858,240.51 724,116,557.52
Total 1,899,753,608.16 1,791,645,568.70
- 114 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(3) Other payables - continued
(b) Aging analysis of other payables
Closing Balance Opening Balance
Aging
Amount Proportion（%） Amount Proportion（%）
Within 1 year
(including 1 year)
More than 3 years 406,540,674.80 21.40 366,005,683.76 20.43
Total 1,899,753,608.16 100.00 1,791,645,568.70 100.00
(c) Significant other payables aged more than one year
Company name Amount payable Aging Reason for being outstanding
Lac Assal Investment Holding Company Limited 79,952,643.76 To be paid upon confirmation by both parties
more than 3 years
Transport Bureau of Shenzhen Municipality
(Ports Administration of Shenzhen Municipality)
Shanghai Zhenhua Heavy Industries Co., Ltd. 39,072,403.74 To be paid upon confirmation by both parties
years
Shantou Bureau of Communications 31,358,355.47 More than 3 years To be paid upon confirmation by both parties
China Communications Fourth Navigation Engineering 1-2 years、2-3 years and
Bureau Co., Ltd more than 3 years
Total 255,021,131.54 —— ——
Item Closing Balance Opening Balance
Long-term borrowings due within one year 5,429,113,410.54 3,271,899,155.70
Including: Credit borrowings 5,305,704,329.05 3,083,776,769.64
Mortgage borrowings 33,593,973.27 110,904,933.53
Guaranteed and mortgage borrowings 89,815,108.22 77,217,452.53
Bonds payable due within one year 229,971,569.71 6,866,623,467.03
Lease liabilities due within one year 211,853,235.22 101,402,045.53
Long-term payables due within one year 114,496,507.83 206,012,716.21
Long-term employee benefits payable due within one year 42,037,962.03 44,885,411.13
Other non-current liabilities due within one year 15,050,000.00 15,860,000.00
Total 6,042,522,685.33 10,506,682,795.60
(1) Details of other current liabilities
Item Closing Balance Opening Balance
Short-term bonds payable 2,004,242,191.78 4,020,214,246.58
Others 195,059,225.24 40,987,514.14
Total 2,199,301,417.02 4,061,201,760.72
- 115 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Changes in short-term bonds payable
Interest accrued Amortisation Is it in
Coupon Term of Amount issued in Repayment in
Name of bond Face value Date of issue Amount of issue Opening Balance based on par of premiums Closing Balance breach of
rate the bond the current year the current year
value or discounts contract?
Short-term Commercial Paper
Short-term Commercial Paper
Short-term Commercial Paper
Short-term Commercial Paper
Total 8,000,000,000.00 8,000,000,000.00 4,020,214,246.58 4,000,000,000.00 47,101,917.80 - 6,063,073,972.60 2,004,242,191.78
- 116 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Range of year-end
Category Closing Balance Opening Balance
interest rate
Credit borrowings 5,677,716,492.69 13,903,500,511.85 1.70%-3.00%
Mortgage borrowings (Note 1) 744,516,884.53 572,319,257.23 2.66%-3.50%
Guaranteed and mortgage borrowings (Note 2) 1,017,722,746.28 1,106,773,486.57 2.25%
Total 7,439,956,123.50 15,582,593,255.65
Note 1: On 31 December 2025, the Company's subsidiary, Yide Port obtained long-term
borrowings of RMB 660,846,067.18 (31 December 2024: RMB 459,116,477.34) secured
by its proprietary land and fixed assets, as well as the proprietary land of Guangdong
Shunkong Lingang Development and Construction Co., Ltd. (hereinafter referred to as
"Shunkong Lingang"). The Company's subsidiary, China Merchants Port (Zhoushan)
RoRo Terminal Co., Ltd. (hereinafter referred to as "Zhoushan RoRo"), obtained a long-
term loan of RMB 83,670,817.35 (31 December 2024: RMB 88,919,018.23) with its land
use right and mortgage of above ground buildings.
Note 2: On 31 December 2025, Shenzhen Haixing Port Development Co., Ltd. (hereinafter
referred to as "Shenzhen Haixing") obtained a long-term loan of RMB 1,017,722,746.28
(31 December 2024: RMB 1,106,773,486.57) with the land holding property rights as
collateral and guaranteed by China Merchants Port Holdings and Sinotrans South China
Co., Ltd.
Details of mortgage borrowings are as follows:
Company name Closing Balance Opening Balance Collateral and pledge
Bank of China Qianhai Shekou Branch 1,017,722,746.28 1,106,773,486.57 Land use rights of Shenzhen Haixing
Land use rights and fixed assets of
China Construction Bank Shunde Branch 112,000,000.00 136,000,000.00
Yide Port
Bank of Communications Co., Ltd. Guangdong
Branch, Shenzhen Branch of China Merchants 548,846,067.18 323,116,477.34 Land use rights of Shunkong Port
Group Finance Co., Ltd.
Land use right and buildings on
China Merchants Group Finance Co., Ltd. 83,670,817.35 88,919,018.23
ground of Zhoushan RoRo
PT Bank Mandiri (Persero) Tbk - 24,283,761.66 Fixed assets of NPH
Total 1,762,239,630.81 1,679,092,743.80
Note: See Note (VIII) 65 for the above mortgages and pledges.
- 117 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Bonds payable
Item Closing Balance Opening Balance
Total 20,709,787,532.29 13,875,559,119.52
- 118 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Statement of changes in bonds payable
Effect of
translation of
Interest accrued Amortisation
Coupon Term of Amount issued in Repayment in financial Default or
Name of bonds Face value Date of issue Amount of issue Opening Balance based on par of premiums Closing Balance
rate the bond the current year current year statements not
value or discounts
denominated in
foreign currencies
USD 600,000,000.00 5.0000% 2018-08-06 10 years USD 600,000,000.00 4,374,939,570.06 - 214,269,350.00 6,411,040.00 214,936,230.51 -96,569,514.75 4,284,114,214.80 No
bond
USD 500,000,000.00 4.7500% 2015-08-03 10 years USD 500,000,000.00 3,661,941,770.15 - 100,372,388.81 1,960,115.12 3,759,572,002.72 -4,702,271.36 - No
bond
USD 500,000,000.00 4.0000% 2022-06-01 5 years USD 500,000,000.00 3,599,756,588.81 - 142,846,505.50 2,821,179.22 142,484,682.36 -80,330,320.40 3,522,609,270.77 No
bond
bond
Bond
term notes
bond
term notes
medium term notes
medium term notes
term notes
term notes
Total —— —— —— —— —— 20,742,182,586.55 7,000,000,000.00 709,079,203.21 11,192,334.34 7,341,092,915.59 -181,602,106.51 20,939,759,102.00 ——
Less: Bonds payable due within
—— —— —— —— —— 6,866,623,467.03 —— —— —— —— —— 229,971,569.71 ——
one year
Bonds payable due after one year —— —— —— —— —— 13,875,559,119.52 —— —— —— —— —— 20,709,787,532.29 ——
- 119 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Lease liabilities
Category Closing Balance Opening Balance
Lease payment 3,748,343,293.15 3,388,957,333.56
Less: Unrecognised financing cost 1,845,629,225.85 1,900,348,297.52
Total 1,902,714,067.30 1,488,609,036.04
Less: Lease liabilities due within one year 211,853,235.22 101,402,045.53
Net leases liabilities 1,690,860,832.08 1,387,206,990.51
(2) Maturity of lease payments
Item Closing Balance
Subsequent years 3,073,810,921.90
Total 3,748,343,293.15
The Group is not exposed to any significant liquidity risk associated with lease liabilities.
Item Closing Balance Opening Balance
Terminal management rights (Note) 3,552,952,940.93 3,330,284,743.90
Sale and leaseback payment 237,923,089.53 72,206,327.12
Shareholder loans 36,685,942.36 -
Special payables 6,461,237.03 6,132,944.24
Other 2,078,590.05 1,971,373.70
Total 3,836,101,799.90 3,410,595,388.96
Less: Long-term payables due within one year 114,496,507.83 206,012,716.21
Long-term payables due after one year 3,721,605,292.07 3,204,582,672.75
- 120 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Note : Mainly from CICT and TCP terminal management rights purchased. On 12 August 2011, the
Group reached a 35-year building, operation and transfer agreement through the subsidiary CICT
and Sri Lanka Port Authority on the building, operation, management and development of
Colombo Port South Container Terminal (hereinafter referred to as "BOT"). The above-
mentioned amount payable for the acquisition of terminal management rights is determined by
discounting the amount to be paid in the future using the prevailing market interest rate according
to the BOT agreement. As at 31 December 2025, the amount payable for the acquisition of
terminal management rights is RMB 879,962,116.70.
TCP, a subsidiary of the Company, entered into a franchise agreement on the Port of
Paranaguá with the Administration of the Ports of Paranaguá and Antonina- APPA
(hereinafter referred to as "APPA"). The agreement provides for an initial term of 25 years
for the franchising rights. In April 2016, TCP and APPA entered into the Supplemental
Agreement, which extends the term to 50 years and will be expired in October 2048.As at
(1) Top five long-term payables at the end of the year
Item Closing Balance Opening Balance
APPA 2,672,990,824.23 2,448,789,645.79
Sri Lanka Ports Authority 882,040,706.75 883,466,471.81
Ocean Offshore 2403 Limited 128,076,334.57 -
China Merchants Finance Lease (Tianjin) Co., Ltd. 109,846,754.96 72,206,327.12
Yihai Kerry Arawana Holdings Co., Ltd. 36,685,942.36 -
Total 3,829,640,562.87 3,404,462,444.72
(2) Special payables
Effect of
Opening changes in the Increase for Decrease for Closing
Item Reason
Balance scope of the year the year Balance
consolidation
Employee housing fund 6,132,944.24 - 328,292.79 - 6,461,237.03 Note
Total 6,132,944.24 - 328,292.79 - 6,461,237.03
Note : This represents the repairing fund for public areas and public facilities and equipment
established after the Group sells the public-owned house on the collectively allocated land
to employees. The fund is contributed by all the employees having ownership of the house
according to the rules and is specially managed and used for specific purpose.
- 121 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Long-term employee benefits payable
Increase for Decrease for
Item Opening Balance Closing Balance
the year the year
Post-employment benefits - net liabilities of
defined benefit plans
Termination benefits 40,614,858.86 2,891,637.36 11,157,508.74 32,348,987.48
Other long-term benefit (note) 38,364,643.44 14,907,600.66 17,828,704.69 35,443,539.41
Total 655,658,044.98 83,337,417.94 192,609,085.30 546,386,377.62
Note : This represents the employee relocation costs of the Company's subsidiary Shantou Port in connection with land acquisition and reservation.
- 122 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Changes in defined benefit plans
Present value of defined benefit plan obligations:
Item Current Year Prior Year
I. Opening balance 593,762,038.30 509,605,071.25
II. Defined benefit cost included in profit or loss for the period -37,583,274.19 26,128,322.32
III. Defined benefit cost included in other comprehensive income -37,489,668.78 65,169,223.46
IV. Other changes -22,994,582.57 -7,140,578.73
V. At the end of the year 495,694,512.76 593,762,038.30
The Company's subsidiaries provide the registered retirees and in-service staff with supplementary
post-employment benefit plans.
The Group hired a third-party actuary to estimate the present value of the above-mentioned
retirement benefit plan obligations in an actuarial manner based on the expected cumulative welfare
unit method. The Group recognises the liabilities based on the actuarial results. The relevant
actuarial gains or losses are included in other comprehensive income and cannot be reclassified into
profit or loss in the future. Past service costs are recognised in profit or loss for the period in which
the plan is revised. The net interest is determined by multiplying the defined benefit plan net debt
or net assets by the appropriate discount rate.
- 123 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Effect of
translation of
Opening Increase for Decrease for financial
Item Closing Balance Reason
Balance the year the year statements
denominated in
foreign currencies
Pending litigation 159,435,795.50 1,800,205.62 88,909,304.78 7,079,118.97 79,405,815.31 Note1
External guarantees
- 107,608,404.55 - -1,521,037.41 106,087,367.14 Note2
provided
Total 159,435,795.50 109,408,610.17 88,909,304.78 5,558,081.56 185,493,182.45
Note 1:This represents the estimated compensation amount RMB 79,405,815.31 that the
Company's subsidiary TCP may need to pay due to the pending litigation.
The decrease in this year is due to the compensation amount of RMB 88,909,304.78
transferred backed by Zhanjiang Port, a subsidiary of the Company, resulting from the
settlement of outstanding litigation
Note 2:As of 31 December 2025, the Board of the Group assessed the default risk of related parties
based on the actual operation of the related parties, which is equivalent to RMB
Effect of changes
Increase for Decrease for
Item Opening Balance in the scope of Closing Balance
the year the year
consolidation
Government grants 1,268,975,316.61 - 8,876,921.27 354,502,788.47 923,349,449.41
Total 1,268,975,316.61 - 8,876,921.27 354,502,788.47 923,349,449.41
(1) Government grants included in deferred income
Category of Amount included in Amount refunded
Closing Balance Reason for return
government grants current profit or loss this year
Government grants 923,349,449.41 51,963,816.21 - Not applicable
Total 923,349,449.41 51,963,816.21 - Not applicable
- 124 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Item Opening Balance Closing Balance
Actuarial cost for the calculation of pension benefit
difference for the public security bureau staff (Note 1)
Other 4,869,460.69 3,700,396.17
Total 164,442,477.36 182,720,254.84
Note 1: It represents the transfer of Zhanjiang Port Public Security Bureau to the People's
Government of Zhanjiang Municipality by Zhanjiang Port, a subsidiary of the Company,
in 2020 in accordance with the Notice on the Issuance of the Program on Deepening the
Management System Reform of Ganghang Public Security Organs (Zhong Yang Bian Ban
Fa No. 327 (2017)) and the Notice on the Issuance of the Implementation Plan for
Deepening the Management System Reform of Ganghang Public Security Organs in
Guangdong Province (Yue Ji Bian Ban Fa No. 221 (2018)). The former in-service police
officers of Zhanjiang Port Public Security Bureau were transferred as civil servants in
accordance with state regulations, the retired police officers were included in the scope of
pension insurance of the government departments and public institutions in Zhanjiang,
and the difference between the pension benefits under the original standard and the
retirement benefits of Zhanjiang municipal police officers (hereinafter referred to as the
"pension benefit difference") was borne by Zhanjiang Port.
Shantou Port, a subsidiary of the Company, transferred Shantou Municipal Public Security
Bureau Ganghang Branch (formerly, the Shantou Port Public Security Bureau) to Shantou
Municipal Government, and Shantou Municipal Public Security Bureau Ganghang Branch
was fully taken over by Shantou Municipal Public Security Bureau. The in-service police
officers were transferred as civil servants in accordance with state regulations, the retired
police officers were included in the scope of pension insurance of the government
departments and public institutions in Shantou, and the pension benefit difference was
borne by Shantou Port.
- 125 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Opening Balance Closing Balance
Increase for the Decrease for the
Name of investor Proportion Proportion
Investment amount year year Investment amount
（%） （%）
China Merchants Port Investment
Development Company Limited
Zhejiang Seaport Investment and
Operation Group Co., Ltd.
China Merchants Gangtong
Development (Shenzhen) 370,878,000.00 14.83 - - 370,878,000.00 14.94
Co., Ltd.
Infrastructure Investment Fund
Management Co., Ltd. –
infrastructure Investment Fund 64,850,182.00 2.59 - - 64,850,182.00 2.61
Partnership (Limited
Partnership)
Broadford International Limited
(hereinafter referred to as 55,314,208.00 2.21 - - 55,314,208.00 2.23
"Broadford")
China Africa Development Fund
Co., Ltd.
Others (Note) 269,297,538.00 10.77 351,400.00 19,817,696.00 249,831,242.00 10.07
Total 2,501,308,481.00 100.00 351,400.00 19,817,696.00 2,481,842,185.00 100.00
Note1: The increased share capital this year is generated by equity incentives, as detailed in Note
(XVI).
Note2: During the current year, the Company repurchased 17,347,289.00 shares (2024:
centralized bidding, with a total of 19,817,696.00 shares repurchased. Payments totaling
RMB 338,393,205.04 were made during the year for the repurchases (2024: RMB
October 2025, the Company completed the cancellation procedures for the
aforementioned 19,817,696.00 repurchased shares (2024: 0.00 share) with the Shenzhen
Branch of China Securities Depository and Clearing Corporation Limited.
Decrease for the Closing
Item Opening Balance Increase for the year
year Balance
Share repurchase (VIII）42 50,559,789.14 338,393,205.04 388,952,994.18 -
Total 50,559,789.14 338,393,205.04 388,952,994.18 -
- 126 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Item Opening Balance Increase Decrease Closing Balance
For the year of 2025
I. Capital premium 36,709,528,363.44 5,489,164.28 369,135,298.18 36,345,882,229.54
Including: Capital contributed by investors 17,108,331,780.58 5,489,164.28 - 17,113,820,944.86
Differences arising from business combination
involving enterprises under common control
Differences arising from acquisition
non-controlling interests
Others 1,673,519,576.38 - 369,135,298.18 1,304,384,278.20
II. Other capital reserve 653,453,468.23 951,302.21 183,700,384.00 470,704,386.44
Including: Transfer from capital reserve under the previous
-2,781,133.00 - - -2,781,133.00
accounting rules
Unexercised share-based payment 506,305.80 - 506,305.80 -
Other 655,728,295.43 951,302.21 183,194,078.20 473,485,519.44
Total 37,362,981,831.67 6,440,466.49 552,835,682.18 36,816,586,615.98
For the year of 2024
I. Capital premium 36,453,130,588.72 256,397,774.72 - 36,709,528,363.44
Including: Capital contributed by investors 17,068,816,277.34 39,515,503.24 - 17,108,331,780.58
Differences arising from business combination
involving enterprises under common control
Differences arising from acquisition
non-controlling interests
Others 1,673,519,576.38 - - 1,673,519,576.38
II. Other capital reserve 623,716,214.34 36,140,304.89 6,403,051.00 653,453,468.23
Including: Transfer from capital reserve under the previous
-2,781,133.00 - - -2,781,133.00
accounting rules
Unexercised share-based payment 6,644,590.36 264,766.44 6,403,051.00 506,305.80
Other 619,852,756.98 35,875,538.45 - 655,728,295.43
Total 37,076,846,803.06 292,538,079.61 6,403,051.00 37,362,981,831.67
- 127 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Items of OCI and their impact on income taxes and transfer to profit or loss
Less: Amount Less: Amount
included in other included in other
comprehensive comprehensive Attributable to non-
Item Opening Balance Pre-tax amount for the income in the prior income in the prior Less: Income Attributable to the controlling Other changes Closing Balance
year year but period but tax expenses Company, net of tax shareholders, net of
transferred to profit transferred to tax
or loss in the retained earnings in
current year the current year
For the year of 2025
I. Other comprehensive income that will not be reclassified
-125,708,734.97 92,020,131.46 - - 192,928.31 36,036,304.99 55,790,898.16 - -89,672,429.98
subsequently to profit or loss
Including: Changes arising from remeasurement of defined
-27,162,681.92 49,464,273.41 - - 124,558.23 23,297,459.58 26,042,255.60 - -3,865,222.34
benefit plans
Other comprehensive income that can't be
-157,659,266.07 40,241,379.95 - - - 11,925,433.55 28,315,946.40 - -145,733,832.52
reclassified to profit or loss under equity method
Changes in fair value of other equity instruments 59,113,213.02 2,314,478.10 - - 68,370.08 813,411.86 1,432,696.16 - 59,926,624.88
II. Other comprehensive income that will be reclassified
-1,432,672,502.48 1,334,425,946.92 - - - 553,181,505.95 781,244,440.97 - -879,490,996.53
subsequently to profit or loss
Including: Other comprehensive income recognised under the
-401,677,243.85 488,977,551.12 - - - 230,672,060.82 258,305,490.30 - -171,005,183.03
equity method
Translation differences of financial statements
-1,030,995,258.63 845,448,395.80 - - - 322,509,445.13 522,938,950.67 - -708,485,813.50
denominated in foreign currencies
Total other comprehensive income -1,558,381,237.45 1,426,446,078.38 - - 192,928.31 589,217,810.94 837,035,339.13 - -969,163,426.51
For the year of 2024
I. Other comprehensive income that will not be reclassified
-22,859,768.83 -221,412,074.80 - - -4,502,591.44 -102,848,966.14 -114,060,517.22 - -125,708,734.97
subsequently to profit or loss
Including: Changes arising from remeasurement of defined
-2,709,609.54 -70,324,586.90 - - -11,930.28 -24,453,072.38 -45,859,584.24 - -27,162,681.92
benefit plans
Other comprehensive income that can't be
-92,749,398.41 -133,077,726.79 - - - -64,909,867.66 -68,167,859.13 - -157,659,266.07
reclassified to profit or loss under equity method
Changes in fair value of other equity instruments 72,599,239.12 -18,009,761.11 - - -4,490,661.16 -13,486,026.10 -33,073.85 - 59,113,213.02
II. Other comprehensive income that will be reclassified
-880,766,825.52 -1,312,433,197.04 - - - -551,905,676.96 -760,527,520.08 - -1,432,672,502.48
subsequently to profit or loss
Including: Other comprehensive income recognised under the
-426,790,507.27 23,077,622.64 - - - 25,113,263.42 -2,035,640.78 - -401,677,243.85
equity method
Translation differences of financial statements
-453,976,318.25 -1,335,510,819.68 - - - -577,018,940.38 -758,491,879.30 - -1,030,995,258.63
denominated in foreign currencies
Total other comprehensive income -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
- 128 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Item Opening Balance Increase Decrease Closing Balance
Safety production cost 40,074,647.27 64,416,940.44 47,212,937.32 57,278,650.39
Item Opening Balance Increase Decrease Closing Balance
Statutory surplus reserve 1,249,537,330.50 - - 1,249,537,330.50
Item Opening Balance Increase Decrease Closing Balance
Statutory surplus reserve 1,095,980,563.68 153,556,766.82 - 1,249,537,330.50
Note 1: According to the Company Law of the People's Republic of China and the Articles of the
Company, the Company withdraws the statutory surplus reserve at 10% of the annual net
profit. When the accumulated amount of the statutory surplus reserve reaches more than
can be used to cover losses or increase share capital after approval. As of 31 December
Proportion of
Item Amount appropriation or
allocation
For the year of 2025
Retained earnings at the beginning of the year before adjustment 21,957,778,579.11
Add: Adjustment to Retained earnings at beginning of the year -
Including: Changes in accounting policies -
Retained earnings at the beginning of the year after adjustment 21,957,778,579.11
Increase for the year 4,611,806,694.91
Including: Net profit of the year attributable to shareholders of the Company 4,611,352,247.98
Retained earnings carried forward from other comprehensive
income
Other 454,446.93
Decrease for the year 1,839,836,697.18
Including: Transfer to statutory surplus reserve in the current year -
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 1,839,836,697.18 Note 1
Ordinary shares' dividends converted into share capital -
Pension benefit difference -
Transfer to National Council of Social Security Fund -
Distribution to holders of other equity instruments -
Others -
Retained earnings at the end of the year 24,729,748,576.84
- 129 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Proportion of
Item Amount appropriation or
allocation
For the year of 2024
Retained earnings at the beginning of the year before adjustment 19,045,313,519.75
Add: Adjustment to Retained earnings at beginning of the year -
Including: Changes in accounting policies -
Retained earnings at the beginning of the year after adjustment 19,045,313,519.75
Increase for the year 4,516,301,317.16
Including: Net profit of the year attributable to shareholders of the Company 4,516,301,317.16
Retained earnings carried forward from other comprehensive income -
Other -
Decrease for the year 1,603,836,257.80
Including: Transfer to statutory surplus reserve in the current year 153,556,766.82
Transfer to discretionary surplus reserve in the current year -
Ordinary shares' dividends payable 1,450,279,490.98
Ordinary shares' dividends converted into share capital -
Pension benefit difference -
Transfer to National Council of Social Security Fund -
Distribution to holders of other equity instruments -
Others -
Retained earnings at the end of the year 21,957,778,579.11
Note 1: According to the resolution of the shareholders' meeting on 23 May 2025, the total share
capital of the company on the previous trading day (16 June 2025) prior to the application
for dividend distribution was 250,150,8381 shares. After excluding the 15,242,574 shares
held in the repurchase special account, the total was 2,486,265,807 shares. Based on this,
the company distributed a cash dividend of RMB 7.40 (including tax) per ten shares,
totaling RMB 1,839,836,697.18.
(1) Details of operating income and operating costs
Current Year Prior Year
Item
Income Costs Income Costs
Principal operation 17,071,898,673.29 9,466,243,393.64 15,943,748,346.43 8,972,147,936.19
Other operations 174,483,854.56 189,943,854.64 187,029,681.81 223,868,756.16
Total 17,246,382,527.85 9,656,187,248.28 16,130,778,028.24 9,196,016,692.35
- 130 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Breakdown information of operating income and operating costs
Ports operation Bonded logistics operation Other operations Total
Category of contracts Operating Operating Operating Operating
Operating costs Operating costs Operating costs Operating costs
income income income income
Mainland China, Hong Kong
and Taiwan area
- Pearl River Delta 6,846,460,971.70 3,759,872,234.74 428,931,723.67 229,625,961.36 174,483,854.56 189,943,854.64 7,449,876,549.93 4,179,442,050.74
- Yangtze River Delta 624,606.56 8,518,229.88 - - - - 624,606.56 8,518,229.88
- Bohai Rim 28,724,541.44 14,775,255.63 154,392,599.38 76,161,626.90 - - 183,117,140.82 90,936,882.53
- Other areas 3,102,625,214.92 2,602,356,247.42 - - - - 3,102,625,214.92 2,602,356,247.42
Other countries 6,448,810,395.23 2,713,413,778.81 61,328,620.39 61,520,058.90 - - 6,510,139,015.62 2,774,933,837.71
Total 16,427,245,729.85 9,098,935,746.48 644,652,943.44 367,307,647.16 174,483,854.56 189,943,854.64 17,246,382,527.85 9,656,187,248.28
- 131 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(3) Description of performance obligations
The Group provides port service, bonded logistics service and other services. These services are
obligations performed over a period of time. For bonded logistics service and other services, the
customers evenly obtain and consume the economic benefits from the Group's performance of
contract, meanwhile the charging rules as agreed in the contract terms usually adopt
daily/monthly/yearly basis. During the process of rendering services, the Group recognises revenue
using straight-line method. At the same time, the Group is primarily responsible for the above
services and generally does not have any commitment to the amount of money expected to be
returned to the customer.
Part of the Group's handling contracts are established with discount terms, i.e., the customers whose
business volume reaches agreed level, are granted with preferential charge rate or discount. At the
end of the year, as the business volume finally realized within the contract period is uncertain, the
contract consideration is subject to variable factors. The management includes this part of discount
in contract liabilities. At the end of the year, the variable considerations arising from sales discount
are set out in Note (VIII) 28.
(4) Descriptions on allocation to remaining performance obligations
At the end of the year, the amount of revenue corresponding to the performance obligations which
the Group has entered into a contract for but has not fulfilled or completely fulfilled mainly included
the contract liabilities of RMB 446,822,948.79, of which RMB 343,637,873.41 is expected to be
recognised as revenue in 2026 and RMB 103,185,075.38 is expected to be recognised as revenue
in 2027 and subsequent years.
Item Current Year Prior Year
Property tax 83,197,668.69 79,101,136.67
Land use tax 37,103,559.80 36,984,937.58
City construction and maintenance tax 9,376,376.49 10,881,226.12
Education surcharges and local education surcharges 7,088,205.63 8,081,655.86
Stamp duty 8,552,973.22 3,673,318.12
Others (Note) 221,754,616.83 193,611,488.80
Total 367,073,400.66 332,333,763.15
Note: Others mainly represent the social contribution tax and tax on services borne by TCP, a
subsidiary of the Company, equivalent to RMB 208,731,946.30 (2024: RMB
- 132 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Item Current Year Prior Year
Employee benefits 1,136,560,493.96 1,352,143,332.57
Depreciation expenses 82,623,922.67 69,734,482.97
Fees paid to agencies 59,744,373.10 76,667,277.58
Amortisation of intangible assets 31,615,270.95 57,062,967.74
Others 222,847,231.71 265,936,221.32
Total 1,533,391,292.39 1,821,544,282.18
Item Current Year Prior Year
Employee benefits 138,539,706.69 127,706,303.07
Direct materials and outsourced R&D 31,546,990.32 67,418,187.58
Depreciation and amortisation 4,793,904.80 4,454,711.92
Others 2,869,671.71 2,175,863.79
Total 177,750,273.52 201,755,066.36
Item Current Year Prior Year
Interest expenses 1,956,321,789.62 2,255,372,593.38
Including: Bank and other borrowings 817,585,732.95 1,084,714,767.25
Bond interest and bill discount 767,246,124.59 800,626,160.05
Interest expenses of terminal operation rights (note) 222,936,588.04 203,047,018.99
Interest expenses of lease liabilities 109,991,536.83 70,660,449.69
Other interest expenses 38,561,807.21 56,170,722.54
Less: Capitalized interest expenses 46,314,263.81 40,153,474.86
Less: Interest income 379,520,826.85 477,430,320.41
Net exchange loss (“-” for income) -44,557,295.34 109,256,513.08
Others 18,911,508.47 10,320,325.68
Total 1,504,840,912.09 1,857,365,636.87
Note: Details are set out in Note (VIII) 37.
Whether it is
Item Current Year Prior Year
government subsidy
Business development subsidy 106,275,887.50 75,662,052.93 Yes
Transfer from deferred income
(Note VIII 40)
Subsidy funds for Qianhai
- 45,939,617.40 Yes
Comprehensive Bonded Zone
Others 14,187,049.71 12,306,141.84 ——
Total 172,426,753.42 185,410,303.29 ——
Including: Government grants 170,950,037.14 183,382,851.80 ——
- 133 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Details of investment income:
Item Current Year Prior Year
Long-term equity investments income 6,324,208,650.73 6,441,005,613.25
Including: Income from long-term equity investments under
equity method
Investment income generated from disposal of long-term equity
-10,518,025.51 -
investments (loss expressed with "-")
Investment income from financial assets held for trading 83,692,880.64 59,078,998.12
Investment income from other non-current financial assets 161,136.85 36,181,898.66
Dividend income from investments in other equity instruments 9,784,500.00 10,815,000.00
Investment from equity remeasurement at fair value upon
acquisition of control
Others -183,578.97 -84,978.53
Total 6,421,520,127.75 6,546,996,531.50
Item Current Year Prior Year
Financial assets held for trading 42,129,916.42 40,176,493.90
Other non-current financial assets 244,210.64 350,055,871.25
Including: Financial assets at fair value through profit or loss 244,210.64 350,055,871.25
Total 42,374,127.06 390,232,365.15
Item Current Year Prior Year
Credit impairment of accounts receivable -7,816,439.72 -1,772,048.18
Reversal of impairment of other receivables -26,086,425.69 363,283,803.95
Reversal of impairment of long-term receivables -63,300,443.53 -10,839.43
Impairment reversal of non-current assets due within one year 35,033.03 17,564.18
Credit impairment of other non-current assets -85,839,940.47 -88,524,171.44
Others (Note) -107,608,404.55 -
Total -290,616,620.93 272,994,309.08
Note: The Group has made provision for credit impairment loss for the provision of guarantees to
the related parties, the ultimate controlling shareholder of the Group this year, as detailed in
Note (VIII) 39.
- 134 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Item Current Year Prior Year
Impairment loss on prepayments -4,329,769.64 -
Reversal of impairment losses of inventories 1,610.64 -
Impairment losses of long-term equity investments - -8,113,482.64
Impairment losses of construction in progress -5,744,701.74 -767,306.24
Total -10,072,860.74 -8,880,788.88
Amount included in non-
Item Current Year Prior Year recurring profit or loss
for the current year
Gains from disposal of non-current assets 4,071,461.15 34,062,395.75 4,071,461.15
Including: Gains from disposal of intangible
assets
Gains from disposal of
fixed assets
Others 557,199.46 282,391.27 557,199.46
Income from non-monetary asset exchange 3,320,297.91 - 3,320,297.91
Total 7,391,759.06 34,062,395.75 7,391,759.06
Amount included in
non-recurring profit or
Item Current Year Prior Year
loss for the current
year
Compensation received for violation of
contracts
Income from relocation compensation 900,000.00 9,072,904.37 900,000.00
Gains from retirement or damage of
non-current assets
Including: Gains from retirement
or damage of fixed assets
Exempted current accounts 11,586,548.10 2,087,824.66 11,586,548.10
Others 24,088,136.18 18,191,026.74 24,088,136.18
Total 83,919,649.43 59,018,655.32 83,919,649.43
- 135 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Amount included in
non-recurring profit
Item Current Year Prior Year
or loss for the
current year
Litigation loss 4,866,567.86 8,725,469.87 4,866,567.86
Losses on retirement of non-current
assets
Including: Losses on retirement
or damage of fixed assets
Expenditure on public welfare
donations
Compensation and liquidated damages 1,423,460.17 689,548.54 1,423,460.17
Others 14,282,428.48 30,680,393.15 14,282,428.48
Total 57,795,398.52 70,252,101.73 57,795,398.52
Capitalisation
Item Capitalisation rate
amount
Construction in progress —— ——
Phase I and II of the second phase of the second phase of the dock
project in the local operation area of the Lingang Liaogeshan 2.81% 11,512,126.95
Port Area of Shunkong Port
Zhanjiang Port Baoman Port Area Container Terminal
Phase I Expansion Project
Dongguan Machong Port Area Berth 2 # and 3 # Project Bulk
Grain Warehouse Phase III Expansion Project
Other non-current assets —— ——
Advances for channels 4.35% 23,695,441.44
Sub-total —— 46,314,263.81
Interest expenses included in profit or loss for the year
(Excludes interest expense on terminal operating rights and —— 1,577,079,400.94
lease liabilities）
Total —— 1,623,393,664.75
Note: The capitalization rate is calculated and determined according to the weighted average
interest rate of general borrowings.
- 136 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Item Current Year
Exchange differences included in profit or loss for the year
-44,557,295.34
(Net income is represented with "-")
Total -44,557,295.34
Item Current Year Prior Year
Current income tax expenses 1,354,611,167.06 1,056,743,121.95
Adjustment of deferred income tax expenses 115,683,847.89 196,094,824.95
Total 1,470,295,014.95 1,252,837,946.90
Reconciliation between income tax expense and accounting profit is as follows:
Item Current Year
Total profit 10,376,286,937.44
Income tax expenses calculated at 25% 2,594,071,734.36
Effect of non-deductible costs, expenses and losses 267,665,831.62
Accrued income tax 551,983,778.92
Effect of deductible temporary differences and deductible losses
for which deferred tax assets are not recognised in the year
Effect of non-tax-free income (Note) -1,035,854,082.87
Effect of tax incentives and changes in tax rate -767,372,012.47
Effect of different tax rates of subsidiaries operating in other jurisdictions -191,183,279.55
Effect of utilizing deductible losses for which deferred tax assets
-57,110,867.98
were not recognised in prior year
Effect of adjustments to income tax of prior year 12,555,217.01
Others 26,566,908.38
Income tax expenses 1,470,295,014.95
Note: This mainly represents the tax effect of income from investments in joint ventures and
associates.
- 137 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Closing Balance Opening Balance
Item
Book value Carrying amount Type of restriction Status of restriction Book value Carrying amount Type of restriction Status of restriction
Restricted margin, Interest receivable, Restricted margin, Interest receivable,
Cash and bank balances
(Note 1)
actually received frozen funds, etc actually received frozen funds, etc
Fixed assets (Note 2) 1,440,293,745.49 1,124,374,793.46 Mortgage Mortgage borrowings 551,053,503.71 467,531,821.78 Mortgage Mortgage borrowings
Intangible assets
(Note 2)
Total 2,296,800,044.85 1,828,763,529.88 1,290,682,343.85 1,207,160,661.92
Note 1: Details of restricted cash and bank balances are set out in Note (VIII) 1.
Note 2: Details of mortgage borrowings are set out in Note (VIII) 24 and Note (VIII) 34.
- 138 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Effect of translation
Effect of Transfer-out
Write-off and Other Other of financial
changes in the Provision for the Reversal for the due to sale in
Item Opening Balance charge-off for increases decreases statements Closing Balance
scope of year year the current
the year for the year for the year denominated in
consolidation year
foreign currencies
Provision for bad debts of accounts
receivable
Provision for bad debts of other receivables 565,593,638.90 30,023,490.42 -3,937,064.73 -1,682,741.75 - - - 48,164,751.35 638,162,074.19
Provision for impairment of prepayments 4,329,769.64 - - - - - -69,151.38 4,260,618.26
Provision for decline in value of inventories 1,153,436.72 - -1,610.64 -508,503.45 - - -113,192.30 -5,495.51 524,634.82
Provision for impairment of long-term
receivables
Provision for non-current assets due
within one year
Provision for impairment of long-term equity
investments
Provision for impairment of fixed assets 213,290,383.06 - - - -960,859.00 - -42,717.28 -6,123.35 212,280,683.43
Provision for impairment of construction in
progress
Provision for impairment of intangible assets 57,010,270.07 - - - - - 57,010,270.07
Provision for impairment of goodwill 970,663,044.33 - - - - - - - 970,663,044.33
Provision for impairment of other
non-current assets
Other credit impairment provision 107,608,404.55 - - - - - -1,521,037.41 106,087,367.14
Total 2,322,570,572.71 312,503,700.69 -11,814,219.02 -34,974,239.35 -960,859.00 - -155,909.58 47,882,456.18 2,635,051,502.63
- 139 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Cash relating to operating activities
Proceeds from other operating activities
Item Current Year Prior Year
Interest income 283,779,032.24 307,426,299.38
Advance payment for waterway 267,849,800.00 -
Government grants 125,437,909.69 420,033,639.31
Guarantees and deposits 37,157,549.08 49,702,895.76
Insurance indemnities 16,600,093.92 5,913,248.16
Operation compensation received - 337,185,774.00
Others 248,243,127.81 292,907,237.50
Total 979,067,512.74 1,413,169,094.11
Payments for other operating activities
Item Current Year Prior Year
Payment of operating costs and management expenses and other
daily operating related expenditures
Advance payment 68,588,791.17 123,589,342.34
Guarantees and deposits 47,900,153.15 34,887,031.26
Others 308,930,096.55 488,214,418.74
Total 621,856,184.73 776,043,007.47
(2) Cash relating to investing activities
Cash receipts relating to significant investing activities
Item Current Year Prior Year
Recovered structured deposits 48,195,000,000.00 26,450,000,000.00
Dividends received 3,002,508,159.17 2,843,360,904.43
Proceeds from disposal of investments (Note 1) 124,800,000.00 1,113,331,868.18
Total 51,322,308,159.17 30,406,692,772.61
Note1: The investment received this year mainly refers to the disposal of shares of Anton
Holdings Co., Ltd. (hereinafter referred to as "Anton Holdings"). The investment
received last year mainly consisted of disposal of shares of Qingdao Port International
Co., Ltd.
- 140 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Cash relating to investing activities - continued
Cash payments relating to significant investing activities
Item Current Year Prior Year
Purchase of structured deposits 50,085,000,000.00 27,450,000,000.00
Purchase and construction of long-term assets 2,177,197,094.25 1,945,061,261.66
Total 52,262,197,094.25 29,395,061,261.66
Proceeds from other investing activities
Item Current Year Prior Year
Collection of marine area usage fee on behalf of other parties 166,565,821.29 -
Collection of marine area usage fee by Dongguan
Shenchiwan Port Affairs Co.,Ltd
Others 16,841,583.11 16,260,626.10
Total 243,876,733.40 16,260,626.10
Payments for other investing activities
Item Current Year Prior Year
Payment of marine area usage fee Shantou Port 166,565,821.29 -
Payment of taxes on land acquisition by ASJ - 259,533,828.27
Others 32,247,426.76 1,606,719.07
Total 198,813,248.05 261,140,547.34
Proceeds from other financing activities
Item Current Year Prior Year
Sale and leaseback proceeds 173,214,720.00 40,000,000.00
Receipts from Shantou Port shareholder’s advance payment
of marine area usage fees
Others 11,831,089.81 15,862,550.05
Total 296,545,809.81 55,862,550.05
- 141 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(3) Cash relating to financing activities - continued
Payment for other financing activities
Item Current Year Prior Year
Repayment of perpetual bonds 1,432,284,747.07 -
Payment for lease and franchise fee 398,027,533.94 316,100,576.04
Repurchase shares of China Merchants Port Group
Co., Ltd.
Payment for the Company's acquisition of non-controlling
- 148,276,411.09
interests of CM Port
Others 26,076,977.32 24,987,752.08
Total 2,194,782,463.37 539,924,528.35
Changes in liabilities arising from financing activities
Increase for the year Decrease for the year
Item Opening Balance Non-cash Non-cash Closing Balance
Cash changes Cash changes
changes changes
Short-term borrowings 12,791,242,141.69 21,573,023,304.86 430,550,682.90 14,376,211,891.72 642,783,406.41 19,775,820,831.32
Long-term borrowings 15,582,593,255.65 1,939,746,727.88 292,778,799.12 4,822,075,965.73 5,553,086,693.42 7,439,956,123.50
Non-current liabilities
due within one year
Bonds payable 13,875,559,119.52 7,000,000,000.00 - - 165,771,587.23 20,709,787,532.29
Lease liabilities 1,387,206,990.51 - 566,013,255.05 - 262,359,413.48 1,690,860,832.08
long-term payables 3,204,582,672.75 209,873,219.40 528,747,976.77 2,491,841.67 219,106,735.18 3,721,605,292.07
Dividends payable 132,334,744.28 - 4,951,478,517.33 4,948,643,790.82 - 135,169,470.79
Other current liabilities 4,020,214,246.58 4,000,000,000.00 47,101,917.80 6,063,073,972.60 - 2,004,242,191.78
Total 61,500,415,966.58 34,722,643,252.14 13,992,818,292.58 41,773,794,838.07 6,922,117,714.07 61,519,964,959.16
(4) The Group has no significant cash flows presented on a net basis.
(5) The Group has no significant activities that do not involve cash receipts and payment for
the current year but have an impact on the enterprise's financial position or may affect the
enterprise's cash flows in the future and their financial effects.
- 142 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Supplementary information to the cash flow statement
Supplementary information Current Year Prior Year
Net profit 8,905,991,922.49 8,878,506,309.91
Add: Impairment losses 10,072,860.74 8,880,788.88
Provision of credit impairment 290,616,620.93 -272,994,309.08
Depreciation of fixed assets 2,049,538,759.19 1,953,338,801.43
Depreciation of investment properties 126,038,336.08 181,519,507.74
Depreciation of right-of-use assets 328,875,072.88 343,623,899.63
Amortisation of intangible assets 711,080,186.01 688,356,905.31
Amortisation of long-term deferred expenses 100,971,541.50 100,433,522.79
Gains from disposal of fixed assets, intangible assets
-7,391,759.06 -34,062,395.75
and other long-term assets
Losses on retirement of fixed assets, intangible assets
and other long-term assets
Gains rising from changes in fair value ("-" for gains) -42,374,127.06 -390,232,365.15
Financial expenses 1,769,754,811.67 2,311,915,401.98
Investment income ("-" for income) -6,421,520,127.75 -6,546,996,531.50
Decrease in deferred tax assets ("-" for increase) 9,993,685.93 49,582,269.26
Increase in deferred tax liabilities 104,370,111.36 146,512,555.69
Increase in inventories ("-" for increase) -36,629,602.91 -50,978,635.81
Decrease in operating receivables ("-" for increase) 192,696.25 146,070,761.75
Increase in operating payables ("-" for decrease) 263,180,904.97 485,894,971.69
Net cash inflow from operating activities 8,174,432,389.05 8,013,212,824.40
cash receipts and payments:
Conversion of debt into capital - -
Convertible bonds due within one year - -
Cash at the end of the year 15,244,357,662.04 16,515,069,554.91
Less: Opening balance of cash 16,515,069,554.91 16,018,613,631.10
Add: Cash equivalents at the end of the year - -
Less: Opening balance of cash equivalents - -
Net (decrease)/increase in cash and cash equivalents -1,270,711,892.87 496,455,923.81
(2) Cash and cash equivalents at the end of the year
Item Closing Balance Opening Balance
I. Cash 15,244,357,662.04 16,515,069,554.91
Including: Cash on hand 191,636.31 457,486.90
Bank deposits available for payment at any time 15,050,273,330.58 16,444,638,576.67
Other monetary funds available for payment at any time 193,892,695.15 69,973,491.34
II. Cash equivalents - -
III. Balance of cash and cash equivalents at the end of the year 15,244,357,662.04 16,515,069,554.91
- 143 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(3) Payment for dividends, profit distributions or interest
Item Current Year Prior Year
Dividends and profits paid to non-controlling shareholders
of subsidiaries
Cash paid for interest repayment 1,673,474,864.06 1,955,539,593.93
Profit distributions 1,839,908,417.00 1,452,793,553.86
Total 6,676,591,884.69 6,961,913,964.29
(4) The Group has no limited scope of use but is still listed as cash and cash equivalents.
(5) See Note (VIII) 1 (3) for details of cash at bank and on hand not belonging to cash and cash
equivalents.
- 144 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
Closing Balance of
Item Exchange rate Closing Balance of RMB
Foreign currency
Cash and bank balances 3,315,013,093.30
Including: HKD 6,950,166.79 0.9032 6,277,390.64
USD 200,558,290.59 7.0288 1,409,684,112.90
RMB 1,863,532,961.33 1.0000 1,863,532,961.33
EUR 2,968,362.12 8.2355 24,445,946.24
AUD 2,361,315.83 4.6892 11,072,682.19
Accounts receivable 40,457,946.36
Including: USD 5,215,880.50 7.0288 36,661,380.86
EUR 461,000.00 8.2355 3,796,565.50
Other receivables 522,662,772.46
Including: HKD 667,661.36 0.9032 603,031.74
USD 2,196,642.72 7.0288 15,439,762.35
EUR 16,727.30 8.2355 137,757.68
RMB 506,482,220.69 1.0000 506,482,220.69
Long-term receivables 1,281,362,958.94
Including: HKD 2,366,680.97 0.9032 2,137,586.25
USD 1,023,180.69 7.0288 7,191,732.43
EUR 29,029,189.56 8.2355 239,069,890.62
AUD 220,285,709.64 4.6892 1,032,963,749.64
Short-term borrowings 1,240,000,000.00
Including: RMB 1,240,000,000.00 1.0000 1,240,000,000.00
Accounts payable 18,446,717.71
Including: HKD 2,642,487.52 0.9032 2,386,694.73
USD 2,186,561.90 7.0288 15,368,906.28
EUR 68,423.01 8.2355 563,497.70
RMB 127,619.00 1.0000 127,619.00
Other payables 301,958,314.85
Including: HKD 39,807,256.57 0.9032 35,953,914.13
USD 31,343,525.45 7.0288 220,307,371.68
EUR 102,570.00 8.2355 844,715.24
RMB 44,852,313.80 1.0000 44,852,313.80
Non-current liabilities due
within one year
Including: USD 13,791,252.17 7.0288 96,935,953.25
RMB 30,595,068.49 1.0000 30,595,068.49
Bonds payable 9,709,787,532.30
Including: USD 1,096,885,319.30 7.0288 7,709,787,532.30
RMB 2,000,000,000.00 1.0000 2,000,000,000.00
- 145 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(1) Lessor under operating lease
Item Amount
I. Operating income
Lease income 327,825,231.69
Including: Income related to variable lease payments that are not included
in lease receipts
II. Undiscounted lease receipts received after the balance sheet date
Over 5 years 72,037,928.73
Note: The operating leases where the Group acts as the lessor are related to port and terminal
facilities, machinery and equipment, vehicles, land and buildings, with lease terms ranging
from 1 years to 38.5 years and option to renew the lease of port and terminal facilities,
machinery and equipment, land and buildings. The Group considers that the unguaranteed
balance of leased assets does not constitute significant risk of the Group, as the assets are
properly used.
(2) Lessee
Item Amount
Interest expenses on lease liabilities 109,991,536.83
Short-term lease expenses that are accounted for using simplified approach
and included in cost of related assets or profit or loss for the year
Expenses on leases of low-value assets (exclusive of expenses on short-term leases
of low-value assets) that are accounted for using simplified approach and included in -
cost of related assets or profit or loss for the year
Variable lease payments that are included in cost of related assets or profit or loss
but not included in measurement of lease liabilities
Including: The portion arising from sale and leaseback transactions -
Income from sub-lease of right-of-use assets 5,116,445.28
Total cash outflows relating to leases 226,981,079.86
Losses from sale and leaseback transactions 10,224,962.17
Cash inflows from sale and leaseback transactions 173,214,720.00
Cash outflows from sale and leaseback transactions 21,941,578.19
Others -
- 146 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(VIII) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
(2) Lessee - continued
Sale and leaseback transactions and basis for determination:
For the purpose of raising funds and leasing back for use, the Company carries out sale and
leaseback transaction with the legally owned terminal assets as the subject of the transfer and the
leased assets, for a term of 2-5 years. As the Company is entitled to repurchase at the expiry of the
lease term and the repurchase price is not lower than the original selling price, it is considered as a
financing transaction and is recognised as a long-term payable when the amount is received from
the lessor, and the difference between the original selling price and the repurchase price is
recognised as interest expenses.
(IX) R&D EXPENDITURE
Item Current Year Prior Year
Employee benefits 144,725,172.10 130,912,466.55
Direct materials and outsourced R&D 41,040,415.17 82,743,846.15
Depreciation and amortisation 5,025,793.67 4,568,822.85
Others 21,743,509.89 31,884,552.82
Total 212,534,890.83 250,109,688.37
Including: R&D expenditure recorded as expenses 177,750,273.52 201,755,066.36
R&D expenditure capitalised 34,784,617.31 48,354,622.01
- 147 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(IX) R&D EXPENDITURE - continued
Increase Decrease
Item Opening Balance Internal Recognised as Recognised as fixed Transferred to profit Closing Balance
development costs intangible assets assets or loss for the year
Digital Petrochemical Terminal
(Phase II)
ePort comprehensive service
platform
Other R&D projects 13,508,535.14 42,099,794.03 2,645,976.64 17,493,440.77 14,246,037.15 21,222,874.61
Total 63,395,053.69 49,030,654.46 46,451,630.50 17,493,440.77 14,246,037.15 34,234,599.73
Including: Data resources - - - - - -
- 148 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION
In January 2025, China United Tally Co., Ltd. Shantou (hereinafter referred to as 'China Tally'),
an associate of the Company’s subsidiary Shantou Port, absorbed Shantou Zhongli Wailun tally
Co., Ltd. (hereinafter referred to as 'Shantou Zhongli'), a subsidiary of Shantou Port. After the
transaction, Shantou Port holds 62.50% shares of China Tally, which contributs to business
combination not involving enterprises under common control. Consequently, China Tally has
been in the scope of consolidation for the current year. Shantou Zhongli was deregistered on 14
February 2025 after the transaction.
There is no business combination under the common control of the Group in the current year.
The Group has no reverse purchase in the current year.
The Group has no disposal of subsidiaries in the current year.
- 149 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(X) CHANGES IN SCOPE OF CONSOLIDATION - continued
The Group has not changed the consolidation scope for other reasons this year.
(XI) EQUITY IN OTHER ENTITIES
(1) Composition of the Group - Major subsidiaries
Registered capital Shareholding ratio
Principal
Place of Nature of (RMB'0000, of the Company
Name of the subsidiary place of Acquisition method
incorporation business unless otherwise (%)
business
specified) Direct Indirect
Shenzhen Chiwan International Freight Agency Shenzhen Logistics support
Shenzhen China 550.00 100.00 - Established through investment
Co., Ltd. China services
Chiwan Port and Shipping (Hong Kong) Co., Ltd.
(hereinafter referred to as "Wharf Holdings HK China HK China Investment holding HKD 1,000,00.00 100.00 - Established through investment
Hong Kong ")
Dongguan Shenchiwan Port Affairs Co., Ltd. Dongguan Logistics support
Dongguan China 45,000.00 85.00 - Established through investment
(hereinafter referred to as "Dongguan Port Affairs") China services
Dongguan Shenchiwan Wharf Co., Ltd. Dongguan Logistics support
Dongguan China 40,000.00 100.00 - Established through investment
(hereinafter referred to as "Dongguan Wharf") China services
Shenzhen Logistics support Business combination involving
Shenzhen Chiwangang Container Co. Ltd. Shenzhen China 28,820.00 100.00 -
China services enterprises under common control
Shenzhen Chiwan Port Development Co., Ltd.
Shenzhen Logistics support Business combination involving
(hereinafter referred to as "Shenchiwan Shenzhen China 10,000.00 100.00 -
China services enterprises under common control
Development")
Shenzhen Logistics support Business combination involving
Chiwan Container Terminal Co., Ltd. Shenzhen China USD 95,300,000.00 55.00 20.00
China services enterprises under common control
Shenzhen Chiwan Tugboat Co., Ltd. Shenzhen Logistics support Business combination involving
Shenzhen China 2,400.00 100.00 -
(hereinafter referred to as "Shenchiwan Tugboat") China services enterprises under common control
Chiwan Shipping (Hong Kong) Limited Logistics support Business combination involving
HK China HK China HKD 800,000.00 100.00 -
(hereinafter referred to as "Chiwan Shipping") services enterprises under common control
HKD Business combination involving
CM Port (Note 1) HK China HK China Investment holding 0.37 49.30
Shenzhen Logistics support Business combination involving
China Merchants Bonded Logistics Co., Ltd. Shenzhen China 70,000.00 40.00 60.00
China services enterprises under common control
China Merchants Holdings (International)
Shenzhen Business combination involving
Information Technology Co. Ltd. (hereinafter Shenzhen China IT service 8,784.82 56.26 43.74
China enterprises under common control
referred to as " CM International Tech ")
China Merchants International (China) Shenzhen Business combination involving
Shenzhen China Investment holding USD 67,400,000.00 - 100.00
Investment Co., Ltd. China enterprises under common control
China Merchants International Container Terminal Logistics support Business combination involving
Qingdao China Qingdao China USD 206,300,000.00 - 100.00
(Qingdao) Co., Ltd. services enterprises under common control
Logistics support Business combination involving
China Merchants Container Services Limited HK China HK China HKD 500,000.00 - 100.00
services enterprises under common control
Shenzhen Logistics support Business combination involving
China Merchants Port (Shenzhen) Co., Ltd. Shenzhen China 55,000.00 - 100.00
China services enterprises under common control
Shenzhen Engineering Business combination involving
Shenzhen Haiqin Project Management Co., Ltd. Shenzhen China 1,000.00 - 100.00
China supervision service enterprises under common control
Preparation for the
Antonje Wharf Storage Service (Shenzhen) Shenzhen HKD Business combination involving
Shenzhen China warehousing - 100.00
Co., Ltd. China 100,000,000.00 enterprises under common control
project
Preparation for the
Shenzhen HKD Business combination involving
ASJ Shenzhen China warehousing - 100.00
China 520,000,000.00 enterprises under common control
project
China Merchants International Terminal Logistics support Business combination involving
Qingdao China Qingdao China USD 44,000,000.00 - 90.10
(Qingdao) Co., Ltd. services enterprises under common control
Logistics support Business combination involving
CICT Sri Lanka Sri Lanka USD 150,000,100.00 - 85.00
services enterprises under common control
Shenzhen Logistics support Business combination involving
Magang Godown & Wharf Shenzhen China 33,500.00 - 100.00
China services enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
Zhangzhou China Merchants Tugboat Co., Ltd. 1,500.00 - 100.00
China China services enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
Zhangzhou China Merchants Port Co., Ltd. 122,700.00 - 60.00
China China services enterprises under common control
Zhangzhou Investment Promotion Bureau
Zhangzhou Zhangzhou Logistics support Business combination involving
Xiamenwan Port Affairs Co., Ltd. (hereinafter 44,450.00 - 31.00
China China services enterprises under common control
referred to as "Xiamenwan Port Affairs") (Note 2)
Shenzhen Logistics support HKD Business combination involving
Shekou Container Terminals Co., Ltd. Shenzhen China - 100.00
China services 618,201,200.00 enterprises under common control
Shenzhen Logistics support Business combination involving
Shenzhen Lianyunjie Container Terminals Co., Ltd. Shenzhen China 60,854.90 - 100.00
China services enterprises under common control
Anxunjie Container Terminals (Shenzhen) Shenzhen Logistics support Business combination involving
Shenzhen China 127,600.00 - 100.00
Co., Ltd. China services enterprises under common control
Preparation for the
Anyunjie Port Warehousing Service (Shenzhen) Shenzhen Business combination involving
Shenzhen China warehousing 6,060.00 - 100.00
Co., Ltd. China enterprises under common control
project
- 150 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
(1) Composition of the Group - Major subsidiaries - continued
Shareholding ratio
Principal Registered capital
Place of Nature of of the Company
Name of the subsidiary place of (RMB'0000, unless Acquisition method
incorporation business (%)
business otherwise specified)
Direct Indirect
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Haixing 53,072.92 - 67.00
China China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Lianyongtong Terminal Co., Ltd. USD 7,000,000.00 - 100.00
China China services enterprises under common control
Logistics support Business combination involving
Yide Port Foshan China Foshan China 21,600.00 51.00 -
services enterprises under common control
Investment Business combination involving
Mega SCT BVI BVI USD 120.00 - 80.00
holding enterprises under common control
Investment Business combination involving
Oasis King International Limited BVI BVI USD 100.00 - 100.00
holding enterprises under common control
Republic of Republic of Logistics support Business combination involving
Lome Container Terminal S.A. (Note 3) XOF 200,000,000.00 - 100.00
Togo Togo services enterprises under common control
Investment Business combination involving
Gainpro Resources Limited BVI BVI USD1.00 - 76.47
holding enterprises under common control
Hambantota International Port Group (Private) Logistics support USD Business combination involving
Sri Lanka Sri Lanka - 85.00
Limited services 1,145,480,000.00 enterprises under common control
Shantou Logistics support Business combination involving
Shantou port Shantou China 12,500.00 - 60.00
China services enterprises under common control
Shenzhen Jinyu Rongtai Investment Development Shenzhen Shenzhen Property lease,
Co., Ltd. China China etc.
Shenzhen Merchants Qianhaiwan Real Estate Shenzhen Shenzhen Property lease,
Co., Ltd. China China etc.
Shenzhen Shenzhen Investment Business combination involving
Juzhongzhi Investment (Shenzhen) Co., Ltd. 4,000.00 - 75.00
China China consulting enterprises under common control
Shantou Logistics support Business combination not involving
Shantou Zhonglian Shantou China 380.00 - 62.50
China services enterprises under common control
Shenzhen Shenzhen Logistics support Business combination involving
Shenzhen Lianda Tugboat Co., Ltd. 3,000.00 - 60.29
China China services enterprises under common control
Zhangzhou Zhangzhou Logistics support Business combination involving
China Ocean Shipping Tally Zhangzhou Co., Ltd. 200.00 - 84.00
China China services enterprises under common control
Logistics support Business combination involving
China Merchants Holdings (Djibouti) FZE Djibouti Djibouti USD 38,140,000.00 - 100.00
services enterprises under common control
Investment Business combination involving
Xinda Resources Limited BVI BVI USD 107,620,000.00 - 77.45
holding enterprises under common control
Investment Business combination involving
Kong Rise Development Limited HK China HK China USD 107,620,000.00 - 100.00
holding enterprises under common control
Logistics support Business combination not involving
TCP Brazil Brazil BRL 68,851,600.00 - 100.00
services enterprises under common control
Investment Business combination involving
Direct Achieve Investments Limited HK China HK China USD 814,781,300.00 - 100.00
holding enterprises under common control
Zhoushan Zhoushan Logistics support
Zhoushan RoRo 17,307.86 51.00 - Asset acquisition
China China services
Zhanjiang Zhanjiang Logistics support Business combination not involving
Zhanjiang Port 587,420.91 30.78 27.58
China China services enterprises under common control
Zhanjiang Port International Container Terminal Zhanjiang Zhanjiang Logistics support Business combination not involving
Co., Ltd. China China services enterprises under common control
Zhanjiang Port Petrochemical Terminal Co., Ltd. Zhanjiang Zhanjiang Logistics support Business combination not involving
(Note 4) China China services enterprises under common control
Zhanjiang Zhanjiang Logistics support Business combination not involving
China Ocean Shipping Tally Co., Ltd., Zhanjiang 300.00 - 84.00
China China services enterprises under common control
Zhanjiang Port Donghaidao Bulk Cargo Terminal Zhanjiang Zhanjiang Logistics support Business combination not involving
Co., Ltd. China China services enterprises under common control
Zhanjiang Zhanjiang Logistics support Business combination not involving
Zhanjiang Port Logistics 10,000.00 - 100.00
China China services enterprises under common control
Guangdong Zhanjiang Port Longteng Shipping Zhanjiang Zhanjiang Logistics support Business combination not involving
Co., Ltd. China China services enterprises under common control
Shantou Logistics support
Shantou Port Tugboat Service Co., Ltd. Shantou China 1,000.00 - 100.00 Established through investment
China services
Logistics support
Sanya Merchants Port Development Co., Ltd. Sanya China Sanya China 1,000.00 51.00 - Established through investment
services
China Merchants Port Modern Logistics
Technology (Shenzhen) Co., Ltd. (Original name: Shenzhen Shenzhen Owning China HKD Business combination involving
- 100.00
China Division of Malai Warehousing (Shenzhen) China China Qianhai property 1,600,000,000.00 enterprises under common control
Co., Ltd.)
Hong Kong Hong Kong Investment
Ports Development (Hong Kong) Limited 2,768,291.56 100.00 - Established through investment
China China holding
Property
Shunkong Port Foshan China Foshan China development and 43,379.95 51.00 - Asset acquisition
management
Logistics support USD
South Asia Commercial and Logistic Hub Limited Sri Lanka Sri Lanka - 70.00 Established through investment
services 37,140,000.00
Logistics support IDR Business combination not involving
NPH Indonesia Indonesia 51.00 -
services 281,394,199,000.00 enterprises under common control
- 151 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
(1) Composition of the Group - Major subsidiaries - continued
Note 1: China Merchants Group (Hong Kong) Co., Ltd. (hereinafter referred to as "CMHK")
accounts for 21.85% of the total issued ordinary shares of China Merchants Port Holdings.
On 19 June 2018, the Company signed the Agreement on Concerted Action of China
Merchants Port Holdings Limited with CMHK. According to the agreement, CMHK has
the voting right of China Merchants Port Holdings entrusted to exercise, when voting on
the matters to be considered at the General Meeting of Port Holding Shareholders of China
Merchants Group, they are unconditionally consistent with the Company, and the opinions
of the Company shall prevail. In March 2022, the Company transferred 43.00% of the
shares held by China Merchants Group Port Holdings to its Hong Kong wholly-owned
subsidiary Port Development (Hong Kong) Co., Ltd. Therefore, the Group holds 71.52%
of the voting rights of China Merchants Group Port Holdings in total, and can control it.
Note 2: The Group signed the Equity Custody Agreement with China Merchants Zhangzhou
Development Zone Co., Ltd., which agreed that China Merchants Zhangzhou
Development Zone Co., Ltd. entrusted its 29% equity of Xiamenwan Port Affairs to the
Group for operation and management. Therefore, the Group has 60% of the voting rights
in Xiamenwan Port Affairs, which can be controlled and included in the consolidation
scope of the Group's consolidated financial statements.
Note 3: The Group has the right to control Lome Container Terminal S.A. by appointing most
members of the Executive Committee, so the Group includes the company into the
consolidation scope of the consolidated financial statements.
Note 4: The Group holds 50% equity interest in Zhanjiang Port Petrochemical Terminal Co., Ltd.
According to the agreement, the Group has control over Zhanjiang Port Petrochemical
Terminal Co., Ltd., and therefore includes it in the scope of consolidation of the
consolidated financial statements.
- 152 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
(2) Significant non-wholly-owned subsidiaries
For the year of 2025
Proportion of Profit or loss
Dividends distributed Closing balance of
ownership interest attributable to non-
Name of the to non-controlling non-controlling
held by the non- controlling
subsidiary shareholders in the interests at the end
controlling shareholders in the
current year of the year
shareholders (%) current year
CM Port 50.33 4,353,804,976.08 1,168,378,259.06 62,386,045,963.64
For the year of 2024
Proportion of Profit or loss
Dividends distributed Closing balance of
ownership interest attributable to non-
Name of the to non-controlling non-controlling
held by the non- controlling
subsidiary shareholders in the interests at the end
controlling shareholders in the
current year of the year
shareholders (%) current year
CM Port 50.33 4,277,480,912.41 1,774,966,740.92 61,825,440,800.08
- 153 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
(3) Major financial information of significant non-wholly-owned subsidiaries
Closing Balance Opening Balance
Name of the
Non-current Current Non-current Non-current Current Non-current
subsidiary Current assets Total assets Total liabilities Current assets Total assets Total liabilities
assets liabilities liabilities assets liabilities liabilities
CM Port 16,951,536,855.85 137,055,044,454.74 154,006,581,310.59 23,735,547,354.21 21,470,010,459.46 45,205,557,813.67 15,225,606,631.78 135,382,012,965.53 150,607,619,597.31 22,281,042,457.07 21,803,874,037.96 44,084,916,495.03
Current Year Prior Year
Name of the
Total Cash flows from Total Cash flows from
subsidiary Operating income Net profit Operating income Net profit
comprehensive income operating activities comprehensive income operating activities
CM Port 12,441,209,669.47 7,443,789,947.75 8,736,642,698.20 6,368,687,421.03 10,990,023,251.60 7,477,357,716.48 6,371,332,629.59 5,708,869,820.55
- 154 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
losing control over the subsidiaries
During this year, there were no changes of the Group in ownership interests in subsidiaries without
losing control over the subsidiaries.
(1) Significant joint ventures or associates
Proportion of ownership
Principal place Place of interests held by the Proportion of voting Accounting treatment of
Investee Nature of business
of business registration Group (%) rights (%) investments in associates
Direct Indirect
Associate
Port and container
SIPG Shanghai, China Shanghai, China - 28.06 28.06 Equity method
terminal business
Port and container
Ningbo Zhoushan Ningbo, China Ningbo, China 20.98 2.10 23.08 Equity method
terminal business
- 155 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
SIPG
Item Closing Balance / Opening Balance /
Current Year Prior Year
Current assets 47,413,401,186.78 48,744,038,847.45
Including: Cash and cash equivalents 31,597,464,469.62 32,830,782,585.55
Non-current assets 174,322,241,805.95 163,311,502,225.58
Total assets 221,735,642,992.73 212,055,541,073.03
Current liabilities 27,825,518,945.32 23,068,287,468.52
Non-current liabilities 37,978,516,336.38 41,578,448,514.91
Total liabilities 65,804,035,281.70 64,646,735,983.43
Net assets 155,931,607,711.03 147,408,805,089.60
Non-controlling interests 14,990,095,964.43 14,101,913,028.59
Net assets attributable to owners of the Company 140,941,511,746.60 133,306,892,061.01
Share of net assets calculated based on the proportion of
ownership interests
Adjustments
- Goodwill 2,427,508,397.27 2,427,508,397.27
- Others 213,133,462.53 222,282,154.18
Carrying amount of equity investments in associates 42,182,508,829.09 40,042,373,774.56
Fair value of publicly quoted equity investments in associates 35,399,715,619.90 39,971,634,611.40
Operating income 39,611,497,351.53 38,116,972,285.82
Financial expenses 630,411,404.37 504,486,954.24
Income tax expenses 3,257,029,262.19 2,652,365,896.79
Net profit 14,953,696,046.09 16,063,786,892.13
Net profit attributable to the owner of the parent company of
the investee in the current year
Other comprehensive income 178,319.65 281,406,740.21
Total comprehensive income 14,953,874,365.74 16,345,193,632.34
Dividends received from associates in the current year 1,273,606,004.78 1,449,951,451.59
- 156 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
Ningbo Zhoushan
Item Closing Balance / Opening Balance/
Current Year Prior Year
Current assets 23,642,829,000.00 15,453,223,000.00
Including: Cash and cash equivalents 7,454,715,000.00 4,586,107,000.00
Non-current assets 99,776,714,000.00 97,445,761,000.00
Total assets 123,419,543,000.00 112,898,984,000.00
Current liabilities 24,178,804,000.00 17,449,594,000.00
Non-current liabilities 9,131,706,000.00 9,899,823,000.00
Total liabilities 33,310,510,000.00 27,349,417,000.00
Net assets 90,109,033,000.00 85,549,567,000.00
Non-controlling interests 9,361,536,000.00 7,256,126,000.00
Net assets attributable to owners of the Company 80,747,497,000.00 78,293,441,000.00
Share of net assets calculated based on the proportion of
ownership interests
Adjustments
- Goodwill 1,231,115,756.87 1,231,115,756.87
- Others 130,502,729.48 120,244,072.03
Carrying amount of equity investments in associates 19,998,140,793.95 19,421,486,011.70
Fair value of publicly quoted equity investments in associates 16,296,791,509.35 17,284,475,843.25
Operating income 31,020,365,000.00 28,702,311,000.00
Financial expenses 105,974,000.00 203,921,000.00
Income tax expenses 1,541,350,000.00 1,509,655,000.00
Financial expenses 105,974,000.00 203,921,000.00
Income tax expenses 1,541,350,000.00 1,509,655,000.00
Net profit 5,667,764,000.00 5,408,738,000.00
Net profit attributable to the owner of the parent company of
the investee in the current year
Other comprehensive income -102,098,000.00 110,866,000.00
Total comprehensive income 5,565,666,000.00 5,519,604,000.00
Dividends received from associates in the current year 619,547,445.81 408,578,523.82
Note: Ningbo Zhoushan's financial data are accurate to the nearest RMB 1,000.00.
- 157 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XI) EQUITY IN OTHER ENTITIES - continued
Closing Balance / Opening Balance/
Item
Current Year Prior Year
Joint ventures:
Total carrying amount of investments 9,261,898,509.63 9,307,873,045.30
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 299,080,492.93 367,446,997.79
- Other comprehensive income 60,392,562.78 161,730,408.57
- Total comprehensive income 359,473,055.71 529,177,406.36
Associates:
Total carrying amount of investments 31,630,551,932.20 31,246,297,063.40
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 1,038,238,586.18 757,730,103.41
- Other comprehensive losses (Income) ("-" for losses) 489,612,977.27 -375,707,391.94
- Total comprehensive income 1,527,851,563.45 382,022,711.47
to transfer funds to the Group.
(XII) GOVERNMENT GRANTS
Balance of receivables at the end of current year -
Amount
New Amount
Opening included in Related to
Item government included in Other changes Closing Balance
Balance non-operating assets/income
grants other income
income
Deferred income 1,268,975,316.61 8,876,921.27 - 51,963,816.21 -302,538,972.26 923,349,449.41 Related to assets
Total 1,268,975,316.61 8,876,921.27 - 51,963,816.21 -302,538,972.26 923,349,449.41 ——
- 158 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XII) GOVERNMENT GRANTS - continued
Item Current Year Prior Year
Business development subsidy 106,275,887.50 75,662,052.93
Subsidy fund for Qianhai Comprehensive Bonded Zone - 45,939,617.40
Special operation subsidy 1,300,000.00 3,184,128.00
Others 11,410,333.43 7,094,562.35
Total 118,986,220.93 131,880,360.68
(XIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS
The Group's major financial instruments include cash and bank balances, financial assets held for
trading, bills receivable, accounts receivable, receivables under financing, other receivables, long-
term receivables, other non-current financial assets, borrowings, bills payable, accounts payable,
other payables, other current liabilities, non-current liabilities due within one year, bonds payable,
long-term payables, other non-current liabilities, etc. Details of these financial instruments are
disclosed in Note (VIII). The risks associated with these financial instruments and the policies on
how to mitigate these risks are set out below. Management of the Group manages and monitors
these exposures to ensure the risks are monitored at a certain level.
The Group adopts sensitivity analysis technique to analyse how the profit or loss for the period and
shareholders' equity would have been affected by reasonably possible changes in the relevant risk
variables. As it is unlikely that risk variables will change in an isolated manner, and the
interdependence among risk variables will have significant effect on the amount ultimately
influenced by the changes in a single risk variable, the following are based on the assumption that
the change in each risk variable is on a stand-alone basis.
The Group's risk management objectives are to achieve a proper balance between risks and yield,
minimise the adverse impacts of risks on the Group's operation performance, and maximise the
benefits of the shareholders and other stakeholders. Based on these risk management objectives, the
Group's basic risk management strategy is to identify and analyse the Group's exposure to various
risks, establish an appropriate maximum tolerance to risk, implement risk management, and
monitors regularly and effectively these exposures to ensure the risks are monitored at a certain
level.
- 159 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIII) FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - continued
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The
Group's exposure to the currency risk is primarily associated with HKD, USD, EUR and AUD.
Except for part of the purchases and sales, the Group's other principal activities are denominated
and settled in RMB. As at 31 December 2025, the balances of the Group's assets and liabilities are
both denominated in functional currency, except that the assets and liabilities set out below are
recorded using foreign currencies. Currency risk arising from the foreign currency balance of assets
and liabilities may have impact on the Group's performance.
Assets Liabilities
Item
Closing Balance Opening Balance Closing Balance Opening Balance
HKD 35,333,835.31 506,851,221.94 456,993,404.43 36,479,381.62
USD 90,451,325.27 73,334,708.12 235,676,277.96 217,821,536.39
RMB (Note) 2,370,015,182.02 1,305,729,601.40 3,315,575,001.29 6,858,128,218.76
EUR 269,524,555.00 231,125,613.67 1,408,212.94 2,008,471.23
AUD 1,044,036,431.83 922,445,897.97 - -
Total 3,809,361,329.43 3,039,487,043.10 4,009,652,896.62 7,114,437,608.00
Note: It refers to RMB financial assets and financial liabilities held by subsidiaries with non RMB
currency as functional currency.
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's
currency risk exposures. According to the current risk exposure and judgment on the exchange rate
movements, the management considers it is unlikely that the exchange rate changes in the next year
will result in significant loss to the Group.
- 160 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIII) FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - continued
Sensitivity analysis on currency risk
The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and
hedges of a net investment in a foreign operation are highly effective. On the basis of the above
assumption, where all other variables are held constant, the reasonably possible changes in the
foreign exchange rate may have the following pre-tax effect on the profit or loss for the period and
shareholders' equity:
Current Year Prior Year
Effect on Effect on
Item Changes in exchange rate Effect Effect
shareholders' shareholders'
on profit on profit
equity equity
All foreign currencies 5% increase against RMB -47,277,990.96 -47,277,990.96 -277,619,930.87 -277,619,930.87
All foreign currencies 5% decrease against RMB 47,277,990.96 47,277,990.96 277,619,930.87 277,619,930.87
All foreign currencies 5% increase against USD -7,261,247.63 -7,261,247.63 -7,224,341.41 -7,224,341.41
All foreign currencies 5% decrease against USD 7,261,247.63 7,261,247.63 7,224,341.41 7,224,341.41
All foreign currencies 5% increase against HKD -21,082,978.46 -21,082,978.46 23,518,592.02 23,518,592.02
All foreign currencies 5% decrease against HKD 21,082,978.46 21,082,978.46 -23,518,592.02 -23,518,592.02
All foreign currencies 13,405,817.10 13,405,817.10 11,455,857.12 11,455,857.12
(including FCFA)
All foreign currencies -13,405,817.10 -13,405,817.10 -11,455,857.12 -11,455,857.12
(including FCFA)
All foreign currencies 5% increase against AUD 52,201,821.59 52,201,821.59 46,122,294.90 46,122,294.90
All foreign currencies 5% decrease against AUD -52,201,821.59 -52,201,821.59 -46,122,294.90 -46,122,294.90
Risk of changes in cash flows of financial instruments arising from interest rate changes is mainly
related to bank loans with floating interest rate. (See Note (VIII) 24 and Note (VIII) 34). The Group
continuously and closely monitors the impact of interest rate changes on the Group's interest rate
risk. The Group's policy is to maintain these borrowings at floating rates. Presently, the Group has
no arrangement such as interest rate swaps.
- 161 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIII) FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - continued
Sensitivity analysis on interest rate risk
Sensitivity analysis on interest rate risk is based on the following assumptions:
• Fluctuations of market interest rate can affect the interest income or expense of a financial
instrument with floating interest rate;
• For a financial instrument at fair value with fixed interest rate, the fluctuations of market interest rate
can only affect its interest income or expense;
• For a derivative financial instrument designated as hedging instrument, the fluctuations of market
interest rate affect its fair value, and all interest rate hedges are expected to be highly effective;
• The changes in fair value of derivative financial instruments and other financial assets and liabilities
are calculated using cash flow discounting method by applying the market interest rate at balance
sheet date.
On the basis of above assumptions, where the other variables held constant, the pre-tax effect of
possible and reasonable changes in interest rate on the profit or loss for the year and shareholders'
equity are as follows:
Current Year Prior Year
Changes in Effect on Effect on
Item
interest rate Effect on profit shareholders' Effect on profit shareholders'
equity equity
Short-term borrowings and
long-term borrowings
Short-term borrowings and
long-term borrowings
As at 31 December 2025, the Group's maximum exposure to credit risk which may cause a financial
loss to the Group due to failure to discharge an obligation by the counterparties and financial
guarantees issued by the Group (without considering the available collateral or other credit
enhancements) is arising from cash and bank balances (Note (VIII) 1), bills receivable (Note (VIII)
(Note (VIII) 11), etc. At the balance sheet date, the carrying amounts of the Group's financial assets
represent its maximum exposure to credit risk. In addition, the Group's maximum credit risk
exposure to credit losses includes the amount of financial guarantee contract as disclosed in (Note
(XVII) 2) "Contingencies". For financial instruments measured at fair value, the book value reflects
its risk exposure, but not the maximum risk exposure, and its maximum risk exposure will change
with the change of future fair value.
- 162 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIII) FINANCIAL INSTRUMENTS AND RISKS MANAGEMENT - continued
In order to minimise the credit risk, the Group has delegated a department responsible for
determination of credit limits, credit approvals and other monitoring procedures to ensure that
follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable
amount of financial assets at each balance sheet date to ensure that adequate provision for bad debts
is made for relevant financial assets. In this regard, the management of the Group considers that the
Group's credit risk is significantly reduced.
The credit risk on cash and bank balances is limited because they are deposited with financial
institutions with high credit ratings.
The Group has no significant concentration of credit risk, with exposure spread over a number of
counterparties and customers.
The Group has adopted a policy to ensure that all sales customers have good credit records.
In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash
equivalents deemed adequate by the management to finance the Group's operations and mitigate
the effects of fluctuations in cash flows. The management monitors the utilisation of bank
borrowings and ensures compliance with loan covenants.
As at 31 December 2025, the Group had total current liabilities in excess of total current assets of
RMB 7,384,414,975.47. As at 31 December 2025, the Group had available and unused line of credit
and bonds amounting to RMB 49,239,851,263.83, among which the amount available for the Group
to withdraw and use exceeds the balance of net current liabilities by more than twelve months after
the balance sheet date. The Group can obtain financial support from the available line of credit and
bonds when needed. Therefore, the Group's management believes that the Group has no significant
liquidity risk.
The following is the maturity analysis for financial assets and financial liabilities held by the Group
which is based on undiscounted remaining contractual obligations:
Item Carrying amount Within 1 year 1 to 5 years Over 5 years Total
Short-term borrowings 19,775,820,831.32 20,352,475,904.75 - - 20,352,475,904.75
Accounts payable 739,900,492.35 739,900,492.35 739,900,492.35
Other payables 2,034,923,078.95 2,034,923,078.95 2,034,923,078.95
Non-current liabilities due
within one year
Other current liabilities 2,199,301,417.02 2,218,261,417.02 - - 2,218,261,417.02
Long-term borrowings 7,439,956,123.50 - 5,655,365,514.96 2,343,604,818.11 7,998,970,333.07
Bonds payable 20,709,787,532.29 - 20,113,151,565.97 1,636,701,369.86 21,749,852,935.83
Lease liabilities 1,690,860,832.08 - 731,079,098.61 2,719,341,503.38 3,450,420,601.99
Long-term payables 3,715,144,055.04 - 891,844,488.69 4,790,769,972.72 5,682,614,461.41
- 163 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE
Fair value of closing balanceof closing balance
Level 1 Level 2 Level 3
Item
Fair value Fair value Fair value Total
measurement measurement measurement
Continuously measured at fair value - - - -
Financial assets held for trading - 7,578,824,365.75 - 7,578,824,365.75
Investments in other equity instruments - - 141,766,365.15 141,766,365.15
Receivables under financing - - 114,680,738.25 114,680,738.25
Other non-current financial assets - - 28,768,810.95 28,768,810.95
Total assets continuously measured
- 7,578,824,365.75 285,215,914.35 7,864,040,280.10
at fair value
adopted for items continuously measured at level 2 fair value
Fair value of
Item Valuation techniques Inputs
closing balance
Financial assets held for trading 7,578,824,365.75 Cash flow discounting Expected rate of return
The fair value of debt instruments at fair value through profit or loss is determined using the cash
flow discounting approach. During the valuation, the Group adopts the expected return as the input.
adopted for items continuously measured at level 3 fair value
Fair value of
Item Valuation techniques Inputs
closing balance
expected profit distribution,
Investments in other equity Income approach,
instruments Net asset method
amount
Receivables under financing 114,680,738.25 Cash flow discounting expected rate of return
Other non-current financial assets 28,768,810.95 Net asset method carrying amount
The fair value of non-listed equity instruments included in equity instruments at fair value through
profit or loss or other comprehensive income is determined using the income approach and net asset
method. The fair value of debt investments is determined using the valuation method of the
discounted cash flow method.
- 164 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIV) DISCLOSURE OF FAIR VALUE - continued
The financial assets and liabilities not measured at fair value mainly include bills receivable,
accounts receivable, other receivables, non-current assets due within one year, long-term
receivables, short-term borrowings, bills payable, accounts payable, other payables, non-current
liabilities due within one year, other current liabilities, lease liabilities, long-term borrowings, bonds
payable and long-term payables etc.
The Group's management believes that the carrying amounts of financial assets and financial
liabilities at amortised cost in the financial statements approximate their fair values.
- 165 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
Proportion of
Proportion of voting
Related party Place of ownership interests
Name of the Company Type of the entity Nature of business Issued share capital power held by the
relationship registration held by the Company
Company (%)
(%)
Broadford Parent Private limited company (share limited) Hong Kong Investment holding HKD 21,120,986,262 2.21 62.96 (Note)
Note: Broadford directly holds 2.21% of the Company's equity, and holds 14.83% of the Company's equity through its subsidiary China Merchants
Gangtong Development (Shenzhen) Co., Ltd. For the year ended 31 December 2024, the controlling shareholder Broadford transferred its 74.66%
shares of Honghui (Hong Kong) Co., Ltd. to CMHK, and CMHK entrusted the 74.66% shares of Honghui (Hong Kong) Co., Ltd. obtained
from the above transfer to Broadford for management. After the completion of this share transfer and share custody, the controlling shareholder
of the company will still be Broadford, The ultimate controlling shareholder of the Company is China Merchants Group Co., Ltd..
Details of the subsidiaries of the Company are set out in Note (X) 1and Note (XI) 1.
- 166 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
Details of the Company's significant joint ventures and associates are set out in Note (XI) 3.
Other joint ventures or associates that have related party transactions with the Group in the current
year, or formed balances of related party transactions with the Group in the prior year are as follows:
Name of joint venture or associate Relationship with the Company
Port of Newcastle and its subsidiaries Joint venture
Qingdao Qianwan West Port United Wharf Co., Ltd. Joint venture
Qingdao Qianwan United Container Terminal Co., Ltd. (hereinafter referred to as "
Joint venture
Qingdao Qianwan United ") and its subsidiaries
COSCO Logistics (Zhanjiang) Co., Ltd. Joint venture
China Ocean Shipping Agency (Zhanjiang) Co., Ltd. Joint venture
Yantai Port Group Laizhou Port Co., Ltd. Joint venture
Qingdao Wutong Century Supply Chain Co., Ltd. Joint venture
Qingdao Port Dongjiakou Ore Terminal Co., Ltd. Joint venture
Euro-Asia Oceangate S.à r.l. Joint venture
GREAT HORN DEVELOPMENT COMPANY FZCO Associate
International Djibouti Industrial Parks Operation FZCo Associate
Port de Djibouti S.A. Associate
Terminal Link SAS Associate
Nanshan Group and its subsidiaries Associate
Shanggang Group and its subsidiaries Associate
Shenzhen Baohong Technology Co., Ltd. Associate
Tianjin Haitian Bonded Logistics Co., Ltd. Associate
Chu Kong River Trade Terminal Co., Ltd. Associate
Shantou International Container Terminals Limited Associate
Shenzhen Chiwan Industrial Development Co., Ltd and its subsidiaries Associate
CM Port Chuangrong (Shenzhen) Technology Co., Ltd. Associate
New Land-Sea Corridor Operation (Zhanjiang) Co., Ltd. Associate
Antong Holdings Associate
RED SEA WORLD S.A. Associate
Associate, controlled by the same
Liaoning Port and its subsidiaries
ultimate controlling shareholder
Associate, controlled by the same
Zhanjiang Sinotrans Chemical International Logistics Co., Ltd.
ultimate controlling shareholder
Associate, controlled by the same
Lac Assal Investment Holding Company Limited
ultimate controlling shareholder
Zhanjiang Infrastructure Construction Investment Group Co., Ltd. Minority shareholders of subsidiary
Yihai Kerry Arawana Holdings Co., Ltd. Minority shareholders of subsidiary
- 167 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
Name of other related parties Relationship with the Company
China Marine Shipping Agency Guangdong Co., Ltd. Controlled by the same ultimate controlling shareholder
Hoi Tung (Shanghai) Company Limited Controlled by the same ultimate controlling shareholder
South China Sinotrans Supply Chain Management Co., Ltd. Controlled by the same ultimate controlling shareholder
EuroAsia Dockyard Enterprise and Development Limited Controlled by the same ultimate controlling shareholder
Qingdao Bonded Logistics Park Sinotrans Warehousing Logistics
Controlled by the same ultimate controlling shareholder
Co., Ltd.
Qingdao Sinotrans Supply Chain Management Co., Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Foreign Forwarding International Freight Co., Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Nanyou (Holdings) Ltd. and its subsidiaries Controlled by the same ultimate controlling shareholder
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Qianhai Shekou Free Trade Investment Development Co. Ltd. Controlled by the same ultimate controlling shareholder
China Merchants International Shipping Agency (Shenzhen) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Real Estate Co., Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen Merchants to Home Technology Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shenzhen Ro-Ro Shipping Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Commercial Property Investment (Shenzhen) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Property Management (Shenzhen) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Marine Shipping Agency Shenzhen Co., Ltd. Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards (Shekou) Limited Controlled by the same ultimate controlling shareholder
Yiu Lian Dockyards Limited Controlled by the same ultimate controlling shareholder
China Merchants International Cold Chain (Shenzhen) Company
Controlled by the same ultimate controlling shareholder
Limited
China Merchants Group Finance Company Limited Controlled by the same ultimate controlling shareholder
China Merchants Investment Development Company Limited Controlled by the same ultimate controlling shareholder
China Merchants Finance Lease (Shanghai) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Finance Lease (Tianjin) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Shekou Industrial Zone Holdings Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchant Food (China) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Power Supply Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Securities Co., Ltd. Controlled by the same ultimate controlling shareholder
China Traffic Import and Export Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Changhang Group Limited Controlled by the same ultimate controlling shareholder
Guangdong Sinotrans Shipping Co., Ltd Controlled by the same ultimate controlling shareholder
Sinotrans Central China Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans (HK) Shipping Limited Controlled by the same ultimate controlling shareholder
Sinotrans (Djibouti) Bonded Logistics Co., Ltd Controlled by the same ultimate controlling shareholder
CMHK Controlled by the same ultimate controlling shareholder
- 168 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
Name of other related parties Relationship with the Company
Sinoway Shipping Ltd. Controlled by the same ultimate controlling shareholder
China Merchants-Logistics Shenzhen Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Zhangzhou Development Zone Co., Ltd. Controlled by the same ultimate controlling shareholder
China Ocean Shipping Agency Shenzhen Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Lines Co., Ltd. Controlled by the same ultimate controlling shareholder
Dalian Port Construction Supervision Consulting Co., Ltd. Controlled by the same ultimate controlling shareholder
Shenzhen West Port Security Service Co., Ltd. Controlled by the same ultimate controlling shareholder
Qingdao Sinotrans Mining Technology Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Surplus Property Management Co., Ltd. Controlled by the same ultimate controlling shareholder
Hong Kong Haitong Co., Ltd. Controlled by the same ultimate controlling shareholder
Haitong Haihui (Shanghai) Technology Co., Ltd Controlled by the same ultimate controlling shareholder
Dalian Jingang United Auto International Trade Co., Ltd. Controlled by the same ultimate controlling shareholder
Sinotrans Container Transportation (Hainan) Co., Ltd. Controlled by the same ultimate controlling shareholder
CIAO International Limited Controlled by the same ultimate controlling shareholder
China Merchants Logistics Group (Tianjin) Co., Ltd. Controlled by the same ultimate controlling shareholder
China Merchants Life Insurance Company Limited Controlled by the same ultimate controlling shareholder
Ocean Offshore 2403 Limited Controlled by the same ultimate controlling shareholder
Zhangzhou Development Zone China Merchants Water Service Co.,
Controlled by the same ultimate controlling shareholder
Ltd.
Qingdao Sinotrans Logistics Co., Ltd. Controlled by the same ultimate controlling shareholder
Haitong (Shenzhen) Trade Co., Ltd. Controlled by the same ultimate controlling shareholder
Significantly influenced by the ultimate controlling
Khor Ambado FZCo
shareholder
Significantly influenced by the ultimate controlling
China Merchants Bank Co., Ltd.
shareholder
Significantly influenced by the ultimate controlling
China Merchants (Shenzhen) Power Supply Co., Ltd.
shareholder
Significantly influenced by the ultimate controlling
Merchants Port City
shareholder
- 169 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(1) Rendering and receipt of services
Pricing method
and decision
Related party Content of transaction procedures of Current Year Prior Year
related
transactions
Rendering of services:
Antong Holdings and its subsidiaries Service income Negotiation 183,425,922.18 176,859,159.34
COSCO Logistics (Zhanjiang) Co., Ltd. Service income Negotiation 160,059,105.02 225,947,824.45
China Ocean Shipping Agency (Zhanjiang) Co.,
Service income Negotiation 65,253,354.03 79,233,370.18
Ltd.
Sinotrans Container Transportation (Hainan) Co.,
Service income Negotiation 30,360,054.63 6,131,576.11
Ltd.
China Merchants International Shipping Agency
Service income Negotiation 26,896,356.56 21,010,835.23
(Shenzhen) Co., Ltd.
CIAO International Limited Service income Negotiation 24,410,550.76 8,880,824.63
China Marine Shipping Agency Guangdong Co.,
Service income Negotiation 21,188,065.75 35,584,126.70
Ltd.
Sinotrans Container Lines Co., Ltd. Service income Negotiation 19,881,157.88 17,893,748.17
Qingdao Qianwan United and its subsidiaries Service income Negotiation 17,532,172.80 24,252,170.73
Yiu Lian Dockyards (Shekou) Limited Service income Negotiation 15,731,288.81 11,901,121.11
China Ocean Shipping Agency Shenzhen Co., Ltd. Service income Negotiation 8,960,748.62 11,097,445.63
South China Sinotrans Supply Chain Management
Service income Negotiation 8,706,595.03 1,719,316.58
Co., Ltd.
Sinotrans Shenzhen Qianhai Supply Chain
Service income Negotiation 7,735,941.43 10,909,073.38
Management Ltd.
China Merchants International Cold Chain
Service income Negotiation 7,313,064.96 7,292,368.68
(Shenzhen) Company Limited
New Land-Sea Corridor Operation (Zhanjiang) Co.,
Service income Negotiation 5,944,398.23 4,288,394.23
Ltd.
Liaoning Port and its subsidiaries Service income Negotiation 5,540,080.74 5,172,690.67
China Merchants Investment Development
Service income Negotiation 5,487,311.33 6,943,066.05
Company Limited
Shenzhen Baohong Technology Co., Ltd. Service income Negotiation 5,362,761.39 5,383,991.91
Qingdao Sinotrans Mining Technology Co., Ltd. Service income Negotiation 5,241,046.33 1,862,160.41
Shenzhen Foreign Forwarding International Freight
Service income Negotiation 4,976,416.56 1,076,981.63
Co., Ltd.
Sinoway Shipping Ltd. Service income Negotiation 4,513,120.66 3,896,159.47
Qingdao Bonded Logistics Park Sinotrans
Service income Negotiation 4,260,105.97 3,816,815.84
Warehousing Logistics Co., Ltd.
China Marine Shipping Agency Shenzhen Co., Ltd. Service income Negotiation 2,917,185.25 4,232,109.18
Qingdao Qianwan West Port United Wharf Co.,
Service income Negotiation 2,431,065.71 2,266,358.07
Ltd.
Shanghai Port Group Service income Negotiation 2,361,696.23 2,265,469.82
Yantai Port Group Laizhou Port Co., Ltd. Service income Negotiation 2,075,471.70 2,075,471.68
Other related parties Service income Negotiation 21,108,956.42 51,267,351.32
Port of Newcastle and its subsidiaries Interest income Negotiation 81,538,614.85 74,581,122.68
China Merchants Group Finance Company Limited Interest income Negotiation 58,333,565.48 50,639,773.00
China Merchants Bank Co., Ltd. Interest income Negotiation 35,222,580.54 42,250,797.70
Terminal Link SAS Interest income Negotiation 12,136,959.77 12,543,736.17
Tianjin Haitian Bonded Logistics Co., Ltd. Interest income Negotiation 1,020,955.28 1,137,311.05
- 170 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(1) Rendering and receipt of services - continued
Pricing method
and decision
Related party Content of transaction procedures of Current Year Prior Year
related
transactions
Receipt of services:
Shenzhen Chiwan Industrial Development Co., Ltd
Service expenditure Negotiation 63,437,864.16 60,383,382.87
and its subsidiaries
Shenzhen Nanyou (Holdings) Ltd. and its subsidiaries Service expenditure Negotiation 27,626,951.49 36,049,247.11
Qingdao Qianwan West Port United Wharf Co., Ltd. Service expenditure Negotiation 14,027,138.61 20,836,557.33
China Merchants Investment Development Company
Service expenditure Negotiation 13,278,955.07 5,407,766.54
Limited
Shenzhen West Port Security Service Co., Ltd. Service expenditure Negotiation 13,262,603.30 12,075,631.88
COSCO Logistics (Zhanjiang) Co., Ltd. Service expenditure Negotiation 9,776,026.07 3,833,081.95
International Djibouti Industrial Parks Operation
Service expenditure Negotiation 7,017,008.60 10,914,744.17
FZCo
Yiu Lian Dockyards Limited Service expenditure Negotiation 6,972,981.32 7,591,973.82
China Merchants-Logistics Shenzhen Co., Ltd. Service expenditure Negotiation 5,864,244.69 2,342,750.95
China Merchants (Shenzhen) Power Supply Co., Ltd. Service expenditure Negotiation 5,405,707.68 8,934,659.73
China Merchants Zhangzhou Development Zone
Service expenditure Negotiation 4,773,226.73 5,339,186.66
Power Supply Co., Ltd.
China Merchants Property Management (Shenzhen)
Service expenditure Negotiation 4,453,957.21 2,668,909.49
Co., Ltd.
Shenzhen Merchants to Home Technology Co., Ltd. Service expenditure Negotiation 4,687,477.54 2,380,710.29
Liaoning Port and its subsidiaries Service expenditure Negotiation 4,135,993.38 11,984,893.16
China Merchants Surplus Property Management Co.,
Service expenditure Negotiation 3,425,914.92 1,349,520.67
Ltd.
China Merchants Shenzhen Ro-Ro Shipping Co., Ltd. Service expenditure Negotiation 3,115,797.45 3,400,014.78
Sinotrans (Djibouti) Bonded Logistics Co., Ltd Service expenditure Negotiation 2,760,536.83 647,189.51
China Merchants Life Insurance Company Limited Service expenditure Negotiation 2,620,060.12 -
Guangdong Sinotrans Shipping Co., Ltd Service expenditure Negotiation 2,539,165.13 1,017,209.17
China Merchant Food (China) Co., Ltd. Service expenditure Negotiation 2,346,484.64 2,650,674.80
Zhangzhou Development Zone China Merchants
Service expenditure Negotiation 2,289,168.30 -
Water Service Co., Ltd.
China Merchants Bank Co., Ltd. Service expenditure Negotiation 2,223,229.30 3,728,413.83
Haitong Haihui (Shanghai) Technology Co., Ltd Service expenditure Negotiation 2,135,015.05 296,918.61
Other related parties Service expenditure Negotiation 24,181,425.24 69,599,130.06
Purchase of structured
China Merchants Bank Co., Ltd. Negotiation 12,210,000,000.00 7,260,000,000.00
deposits
China Merchants Bank Co., Ltd. Interest expense Negotiation 60,658,343.65 72,154,609.27
China Merchants Group Finance Company Limited Interest expense Negotiation 32,877,199.14 36,451,832.93
Ocean Offshore 2403 Limited Interest expense Negotiation 6,747,197.02 -
China Merchants Finance Lease (Tianjin) Co., Ltd. Interest expense Negotiation 3,536,983.75 3,483,279.42
China Merchants Finance Lease (Shanghai) Co., Ltd. Interest expense Negotiation - 2,356,009.46
- 171 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(2) Leases with related parties
The Group as the lessor:
Pricing method
and decision Lease income Lease income
Name of the lessee Type of leased assets procedures of recognised in the recognised in the
related current year prior year
transactions
Qingdao Qianwan West Port United Wharf Co., Ltd. Port and terminal facilities Negotiation 17,168,242.49 14,351,518.19
Qingdao Bonded Logistics Park Sinotrans
Port and terminal facilities Negotiation 5,088,364.64 5,375,787.11
Warehousing Logistics Co., Ltd.
Qingdao Sinotrans Supply Chain Management
Buildings and structures Negotiation 4,797,960.58 4,811,101.79
Co., Ltd.
China Traffic Import and Export Co., Ltd. Buildings and structures Negotiation 3,869,907.41 5,179,670.76
Qingdao Sinotrans Mining Technology Co., Ltd. Port and terminal facilities Negotiation 3,562,917.83 4,750,557.12
Qingdao Qianwan United and its subsidiaries Buildings and structures Negotiation 3,499,481.46 3,508,252.92
Qingdao Wutong Century Supply Chain Co., Ltd. Buildings and structures Negotiation 2,565,010.92 2,713,039.19
Qingdao Sinotrans Logistics Co., Ltd. Port and terminal facilities Negotiation 2,477,691.42 2,477,668.56
Haitong (Shenzhen) Trade Co., Ltd. Buildings and structures Negotiation 2,462,532.60 2,811,192.84
China Merchants Securities Co., Ltd Buildings and structures Negotiation 2,458,235.85 2,460,986.37
CM Port Chuangrong (Shenzhen) Technology
Port and terminal facilities Negotiation 2,321,467.98 2,577,426.36
Co., Ltd.
Yiu Lian Dockyards (Shekou) Limited Buildings and structures Negotiation 2,052,603.46 2,149,478.11
Buildings and structures,
Other related parties Negotiation 9,344,668.62 10,106,892.93
Port and terminal facilities
Total —— —— 61,669,085.26 63,273,572.25
- 172 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(2) Leases with related parties - continued
The Group as the lessee:
Short-term lease expenses or Variable lease payments that
expenses on leases of low-value are not included in the Interest expenses on lease
Rental paid Addition to right-of-use assets
Name of the lessor Type of leased assets assets that are accounted for using measurement of lease liabilities
simplified approach liabilities
Current Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Prior Year Current Year Prior Year
China Merchants Shekou
Port and terminal facilities,
Industrial Zone Holdings 306,224.00 - - - 44,066,799.39 33,671,185.02 1,587,229.84 2,627,207.77 - 6,841,334.09
Land use right
Co., Ltd
EuroAsia Dockyard
Enterprise and Port and terminal facilities - - - 15,072,619.95 16,267,717.80 383,677.34 452,003.87 - -
Development Limited
Shenzhen Qianhai Shekou
Free Trade Investment Land use right 14,277,045.89 7,718,862.46 - - 7,780,990.03 8,413,560.00 - - - -
Development Co., Ltd
Buildings and structures,
Nanshan Group and its
Port and terminal facilities, 122,873.40 458,524.82 - - 4,548,686.64 72,495,152.94 9,439,152.47 1,549,113.49 373,165,903.84 -
subsidiaries
Land use right, Others
China Merchants Finance
Port and terminal facilities - - - - 2,491,841.67 25,037,299.24 3,536,983.75 3,627,216.64 - -
Lease (Tianjin) Co., Ltd.
Machinery and equipment,
Buildings and structures,
Others 2,142,297.24 2,213,002.01 - - 5,138,359.72 90,570,525.17 153,444.84 2,707,383.66 5,583,342.98
Port and terminal facilities,
Land use right, Others
Total 16,848,440.53 10,390,389.29 - - 79,099,297.40 246,455,440.17 15,100,488.24 10,962,925.43 373,165,903.84 12,424,677.07
- 173 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(3) Related party guarantees
The Group as the guarantor:
Guaranteed Maturity The guarantee has
Secured party Credit line Commencement date
amount date been completed or not
For the year of 2025
Terminal Link SAS (Note 1) 57,247,051.41 57,247,051.41 11 June 2013 2033 No
Khor Ambado FZCo (Note 3) 202,429,440.00 158,095,856.92 24 May 2019 2032 No
Terminal Link SAS (Note 2) 231,950,400.00 113,655,696.00 25 January 2023 2030 No
Total 491,626,891.41 328,998,604.33 —— —— ——
For the year of 2024
Terminal Link SAS (Note 1) 58,245,642.59 58,245,642.59 11 June 2013 2033 No
Khor Ambado FZCo (Note 3) 207,025,920.00 167,923,750.92 24 May 2019 2032 No
Terminal Link SAS (Note 2) 237,217,200.00 116,236,428.00 25 January 2023 2030 No
Total 502,488,762.59 342,405,821.51 —— —— ——
Note 1: In previous years, CMA CGM S.A., another shareholder of Terminal Link SAS, an
associate of the Group, provided 100% guarantee for the bank loan financing and other
liabilities of Terminal Link SAS. The Group makes a commitment to CMA CGM S.A. to
provide guarantee for the bank loan financing and other liabilities to Terminal Link SAS
in accordance with the 49% equity ratio of Terminal Link SAS held by the Group. The
actual guaranteed amount is RMB 57,247,051.41 as at 31 December 2025. If any
guarantee liability occurs, the Group will compensate CMA CGM S.A..
Note 2: The Group and CMA CGM S.A. provide guarantee for bank loan financing and other
liabilities of the associated company Terminal Link SAS according to their shareholding
ratio. The actual guarantee amount on 31 December 2025 is RMB 113,655,696.00.
Note 3: Khor Ambado FZCo is a related party of the ultimate controlling shareholder of the Group.
The Group and other shareholders of Khor Ambado FZCo provide guarantees for its bank
loan financing and other liabilities in proportion to their shareholding. The actual
guarantee amount on 31 December 2025 is RMB 158,095,856.92.
Note 4: For the related guarantees provided by the Group, please refer to Note (VIII) 39 for the
details of credit impairment losses for this year.
The Group as the guaranteed party:
The guarantee
Guaranteed Commencement
Guarantor Credit line Maturity date has been
amount date
completed or not
For the year of 2025
SINOTRANS SOUTH CHINA
COMPANY LIMITED (Note 5)
For the year of 2024
SINOTRANS SOUTH CHINA
COMPANY LIMITED (Note 5)
Note 5: Refer to Note (VIII) 34.
- 174 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(4) Borrowings and loans with related parties
Related party Amount Commencement date Maturity date Description
Borrowings
China Merchants Bank Co., Ltd. 1,672,217,483.07 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co., Ltd. 786,838,830.68 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Group Finance Company Limited 276,992,067.79 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Group Finance Company Limited 421,567,628.72 Actual borrowing date Agreed repayment date Long-term borrowings
Ocean Offshore 2403 Limited 135,714,720.00 Actual borrowing date Agreed repayment date Long-term payables
Yihai Kerry Arawana Holdings Co., Ltd. 36,658,499.40 Actual borrowing date Agreed repayment date Long-term payables
Total 3,329,989,229.66 —— —— ——
Borrowings
China Merchants Bank Co., Ltd. 1,298,369,781.25 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Bank Co., Ltd. 1,336,953,012.50 Actual borrowing date Agreed repayment date Long-term borrowings
China Merchants Group Finance Company Limited 268,456,381.95 Actual borrowing date Agreed repayment date Short-term borrowings
China Merchants Group Finance Company Limited 59,158,045.05 Actual borrowing date Agreed repayment date Long-term borrowings
Total 2,962,937,220.75 —— —— ——
Note 1: As at 31 December 2025, the total credit lines of the Group from the related parties China
Merchants Bank Co., Ltd. and China Merchants Group Finance Co., Ltd. are RMB
(5) Asset transfer from related parties
Pricing method and
Related party Content of transaction decision procedures of Current Year Prior Year
related transactions
Transfer of equity
Sinotrans Container Lines Co., Ltd. Negotiation 124,800,000.00 -
investment
Zhanjiang Sinotrans Chemical Contribution of land use
Valuation 52,122,355.00 -
International Logistics Co., Ltd. right
Zhanjiang Sinotrans Chemical
Transfer of land use right Valuation 43,972,744.00 -
International Logistics Co., Ltd.
Shantou International Container Reduce of registered
Registered capital - 120,000,000.00
Terminals Limited capital
RED SEA WORLD S.A. Equity investment Fair value - 160,855,674.82
Hoi Tung (Shanghai) Company Limited Fixed assets Negotiation 4,373,097.35 2,876,106.19
Dalian Jingang United Auto
Fixed assets Negotiation 1,526,353.98 2,454,981.76
International Trade Co., Ltd.
Dalian Jingang United Auto
Construction in progress Negotiation 6,368,176.96 -
International Trade Co., Ltd.
Dalian Jingang United Auto
International Trade Co., Ltd. and its Construction in progress Negotiation 7,806,951.99 1,651,790.19
subsidiary
Ocean Offshore 2403 Limited Construction in progress Negotiation 3,437,294.42 -
Hong Kong Haitong Co., Ltd. Construction in progress Negotiation 1,572,861.85 15,893,828.70
Other related parties Construction in progress Negotiation 401,512.05 3,518,918.32
Total —— —— 246,381,347.60 307,251,299.98
- 175 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(6) Compensation for key management personnel
Item Current Year Prior Year
Compensation for key management personnel 19,426,155.25 17,310,521.40
(1) Amounts due from related parties
Item Related party Closing Balance Opening Balance
China Merchants Bank Co., Ltd. 1,859,504,299.96 3,404,002,420.98
Cash and bank balances China Merchants Group Finance Company Limited 4,733,188,415.27 4,745,991,554.35
Total 6,592,692,715.23 8,149,993,975.33
COSCO Logistics (Zhanjiang) Co., Ltd. 20,909,052.72 12,222,891.71
Antong Holdings and its subsidiaries 14,331,644.37 9,901,450.77
Sinotrans Container Transportation (Hainan) Co., Ltd. 5,490,141.47 2,350,603.78
Sinotrans (HK) Shipping Limited 4,192,924.81 1,188,868.03
Sinotrans Container Lines Co., Ltd. 2,759,474.70 4,496,476.26
Liaoning Port and its subsidiaries 2,270,387.91 2,358,141.87
GREAT HORN DEVELOPMENT COMPANY FZCO 2,152,921.44 2,201,806.92
Accounts receivable China Ocean Shipping Agency Shenzhen Co., Ltd. 2,038,931.07 3,778,789.25
Yiu Lian Dockyards (Shekou) Limited 1,409,897.20 355,728.00
Sinotrans Central China Co., Ltd. 1,247,021.25 27,768.35
China Merchants Investment Development Company Limited 1,220,166.04 3,439,600.00
Nanshan Group and its subsidiaries 1,288,469.27 337,492.97
China Merchants Logistics Group (Tianjin) Co., Ltd. - 3,109,502.50
Other related parties 9,712,084.91 13,888,769.02
Total 69,023,117.16 59,657,889.43
- 176 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(1) Amounts due from related parties - continued
Item Related party Closing Balance Opening Balance
Shanggang Group and its subsidiaries 326,565,642.25 326,565,642.25
Nanshan Group and its subsidiaries 111,042,000.00 148,056,000.00
Qingdao Port Dongjiakou Ore Terminal Co., Ltd. 68,175,602.27 -
Merchants Port City 35,771,044.77 38,809,044.77
Euro-Asia Oceangate S.à r.l. 28,485,290.83 23,881,469.17
Dividends receivable
Port of Newcastle and its subsidiaries 7,264,990.21 -
China Ocean Shipping Agency Shenzhen Co., Ltd. - 10,575,000.00
COSCO Logistics (Zhanjiang) Co., Ltd. - 5,649,001.16
Qingdao Wutong Century Supply Chain Co., Ltd. - 1,190,109.26
Total 577,304,570.33 554,726,266.61
Chu Kong River Trade Terminal Co., Ltd. 32,841,079.20 37,374,974.40
Port de Djibouti S.A. 24,776,520.00 -
Shenzhen Qianhai Shekou Free Trade Investment Development
Co., Ltd.
Ocean Offshore 2403 Limited 7,028,800.00 -
China Merchants Investment Development Company Limited 5,710,073.55 3,837,775.52
Shenzhen Nanyou (Holdings) Ltd. and its subsidiaries 3,994,120.74 31,299,652.92
Other receivables
International Djibouti Industrial Parks Operation FZCo 1,891,143.64 293,452.73
EuroAsia Dockyard Enterprise and Development Limited 1,526,824.77 1,565,400.24
China Merchants Commercial Property Investment (Shenzhen)
Co., Ltd.
CMHK 1,059,673.20 2,300,860.48
Other related parties 2,668,491.95 3,954,388.97
Total 89,885,465.45 88,102,913.66
China Merchants Life Insurance Company Limited 3,126,654.88 -
Prepayments Other related parties 1,095,819.45 306,332.45
Total 4,222,474.33 306,332.45
Tianjin Haitian Bonded Logistics Co., Ltd. - 34,300,000.00
Non-current assets due
China Merchants Finance Lease (Tianjin) Co., Ltd. - 733,025.11
within one year
Total - 35,033,025.11
Port of Newcastle and its subsidiaries 1,032,950,257.96 920,674,796.27
Terminal Link SAS 239,062,457.32 215,013,954.38
Long-term receivables Tianjin Haitian Bonded Logistics Co., Ltd. 34,300,000.00 -
Other related parties 539,722.23 1,058,295.37
Total 1,306,852,437.51 1,136,747,046.02
- 177 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(2) Amounts due to related parties
Item Related party Closing Balance Opening Balance
China Merchants Bank Co., Ltd. 1,093,426,099.97 1,298,369,781.25
Short-term borrowings China Merchants Group Finance Company Limited 191,124,984.44 180,132,916.65
Total 1,284,551,084.41 1,478,502,697.90
Antong Holdings and its subsidiaries 17,869,057.61 17,869,057.61
Nanshan Group and its subsidiaries 9,459,413.49 7,793,894.49
China Merchants (Shenzhen) Power Supply Co., Ltd. 7,849,882.40 7,491,614.83
Shenzhen Chiwan Industrial Development Co., Ltd and its
subsidiaries
COSCO Logistics (Zhanjiang) Co., Ltd. 3,959,010.47 111,854.40
Liaoning Port and its subsidiaries 2,956,796.42 5,020,956.61
Accounts payable Yiu Lian Dockyards Limited 2,304,412.28 1,831,651.56
EuroAsia Dockyard Enterprise and Development Limited 2,275,716.26 1,562,589.15
International Djibouti Industrial Parks Operation FZCo 2,013,472.16 -
Qingdao Qianwan West Port United Wharf Co., Ltd. 1,709,239.56 2,302,401.72
China Merchants Investment Development Company Limited 1,603,085.74 1,916,766.44
Shenzhen West Port Security Service Co., Ltd. 1,227,570.98 991,318.88
Other related parties 11,585,506.37 27,129,981.41
Total 70,696,227.64 79,908,223.92
Advance payments
Other related parties 641,753.44 1,020,627.96
received
CIAO International Limited 1,500,000.00 -
Contract liabilities Other related parties 1,909,613.77 990,669.32
Total 3,409,613.77 990,669.32
China Merchants Zhangzhou Development Zone Co., Ltd. 105,526,928.23 79,792,513.04
Yiu Lian Dockyards Limited 22,924,685.89 -
Dividends payable Zhanjiang Infrastructure Construction Investment Group Co.,
- 52,542,231.24
Ltd.
Total 128,451,614.12 132,334,744.28
CMHK 309,403,432.24 3,518.95
Lac Assal Investment Holding Company Limited 79,952,643.76 81,768,095.74
Antong Holdings and its subsidiaries 6,340,341.84 4,743,266.37
Nanshan Group and its subsidiaries 4,667,248.90 1,487,524.53
Liaoning Port and its subsidiaries 4,050,509.93 1,752,579.27
China Merchants Shekou Industrial Zone Holdings Co., Ltd. 3,465,204.79 6,930,409.58
Other payables CIAO International Limited 2,999,920.00 2,999,920.00
Sinotrans Shenzhen Qianhai Supply Chain Management Ltd. 1,220,440.54 1,744,765.30
China Merchants Commercial Property Investment (Shenzhen)
Co., Ltd.
China Merchants Investment Development Company Limited - 3,559,625.15
Other related parties 11,382,893.37 14,317,754.41
Total 423,639,415.00 122,283,172.95
- 178 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XV) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
(2) Amounts due to related parties - continued
Item Related party Closing Balance Opening Balance
China Merchants Investment Development Company Limited 12,922,678.94 -
Liaoning Port and its subsidiaries 755,883.15 -
Other current liabilities China Merchants Bank Co., Ltd. 596,666.67
Other related parties 943,076.91 -
Total 15.218.305.67 -
China Merchants Group Finance Company Limited 307,767,555.63 153,940,240.06
China Merchants Bank Co., Ltd. 251,962,126.24 115,025,994.45
Nanshan Group and its subsidiaries 126,190,230.53 -
China Merchants Shekou Industrial Zone Holdings Co., Ltd. 32,080,134.08 37,080,955.45
Non-current liabilities
Ocean Offshore 2403 Limited 28,115,200.00 -
due within one year
China Merchants Finance Lease (Tianjin) Co., Ltd. - 40,241,960.67
EuroAsia Dockyard Enterprise and Development Limited - 14,776,413.72
Other related parties 1,581,487.09 2,585,085.02
Total 747,696,733.57 363,650,649.37
China Merchants Bank Co., Ltd. 968,696,138.04 1,316,000,000.00
Long-term borrowings China Merchants Group Finance Company Limited 725,208,087.03 658,012,389.53
Total 1,693,904,225.07 1,974,012,389.53
Nanshan Group and its subsidiaries 253,660,100.77 -
China Merchants International Cold Chain (Shenzhen)
Lease liabilities Company Limited
China Merchants Shekou Industrial Zone Holdings Co., Ltd. - 32,067,795.24
Total 253,936,592.53 33,250,597.16
China Merchants Finance Lease (Tianjin) Co., Ltd. 109,846,754.96 31,964,366.45
Ocean Offshore 2403 Limited 99,961,134.57 -
Long-term payables
Yihai Kerry Arawana Holdings Co., Ltd. 36,658,499.40 -
Total 246,466,388.93 31,964,366.45
- 179 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS
Type of Granted in the current Exercised in the current Unlocked in the current
Lapsed in the current year
targets year year year
granted Qty. Amount Qty. Amount Qty. Amount Qty. Amount
Management - - 351,400.00 1,142,050.00 - - 13,500.00 43,875.00
Outstanding stock option or other equity instruments at the end of current year
Outstanding stock option at the end of current year
Type of targets granted
Range of exercise prices Remaining term of contract
Management RMB 12.51 to RMB 14.76 13 months
- 180 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
The method used to determine the fair value of equity The cost of granted stock options was estimated using the
instruments at the grant date Black Scholes Model.
At each balance sheet date in the vesting period, the best
estimate was made and the estimated number of exercisable
The basis for determining the number of exercisable equity
equity instruments was modified according to the latest
instruments
changes in the number of employees who can exercise the
rights and other subsequent information.
Reasons for the significant difference between the estimates
Nothing
of the current year and the estimates of prior year
The aggregate amount of equity-settled share-based payments
that is included in capital reserve
Pursuant to the Official Reply on the Implementation of the Stock Option Incentive Plan of China
Merchants Port Group Co., Ltd. by State-owned Assets Supervision and Administration
Commission of the State Council (No. 748 [2019], SASAC), which was deliberated and approved
by the 1st Extraordinary General Meeting of the Company in 2020 on 3 February 2020, the Company
implemented a stock option plan with effect from 3 February 2020 to grant 238 incentive recipients
period in the premise that the vesting conditions are satisfied. The stock options are exercisable in
three batches, specifically, 40% for the first batch (after 24 months but within 36 months subsequent
to the grant date), 30% for the second batch (after 36 months but within 48 months subsequent to
the grant date) and the remaining 30% for the third batch (after 48 months but within 84 months
subsequent to the grant date). Each stock option entitles the holder to subscribe for one ordinary
share of the Company.
On 5 March 2021, the granting of stock option (reserved portion) under stock option inventive plan
(phase I) was completed. The reserved portion of stock option targets to total 3 persons, granting
January 2021. With a lockup period of 24 months from the grant date, the stock options are
exercisable upon expiry of the 24-month lockup period in the premise that the vesting conditions
are satisfied. The stock options are exercisable in two batches, specifically, 50% for the first batch
(after 24 months but within 36 months subsequent to the grant date), and the remaining 50% for the
second batch (after 36 months but within 72 months subsequent to the grant date). Each stock option
entitles the holder to subscribe for one ordinary share of the Company.
- 181 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
According to Article 32 of Stock Option Incentive Plan, since the grant date of the stock option, if
the Company distributes dividends prior to the exercise of the option, the exercise price shall be
adjusted accordingly. Therefore, the Company uniformly adjusted the exercise price from
RMB17.80 per share to 17.34 per share in respect of the first batch of stock option granted under
the stock option incentive plan (phase I) on 30 January 2021; the Company uniformly adjusted the
exercise price from RMB 17.34 per share to 16.96 per share in respect of the first batch of stock
option granted under the stock option incentive plan (phase I), and the exercise price of the reserved
portion of stock option from RMB 15.09 per share to 14.71 per share on 29 January 2022; the
Company uniformly adjusted the exercise price from RMB 16.96 per share to 16.53 per share in
respect of the first batch of stock option granted under the stock option incentive plan (phase I), and
the exercise price of the reserved portion of stock option from RMB 14.71 per share to 14.28 per
share on 20 January 2023. Company uniformly adjusted the exercise price from RMB 16.53 per
share to 16.08 per share in respect of the first batch of stock option granted under the stock option
incentive plan (phase I), and the exercise price of the reserved portion of stock option from RMB
price from RMB 16.08 per share to 15.50 per share in respect of the first batch of stock option
granted under the stock option incentive plan (phase I), and the exercise price of the reserved portion
of stock option from RMB 13.83 per share to 13.25 per share on 31 August 2024. The Company
uniformly adjusted the exercise price from RMB 15.50 per share to 14.76 per share in respect of
the first batch of stock option granted under the stock option incentive plan (phase I), and the
exercise price of the reserved portion of stock option from RMB 13.25 per share to 12.51 per share
on 31 August 2025.
As at 31 December 2025, as 1 of the incentive targets for the first batch of stock option granted
under the stock option incentive plan (phase I) have lost the qualification to participate in the
company's incentive plan, the board of directors of the Company decided to cancel in total of 13,500
shares of stock option granted but not yet exercised by such persons.
As at the date on which the financial statements are issued, 192 incentive targets who can exercise
the rights for the third vesting period of the stock option (1st batch) under the stock option incentive
plan (phase I) included: (1) 187 incentive targets who met the designated grades in the performance
assessment, holding 100% of the stock option (totalling 3,408,900 shares) for the third vesting
period of the stock option (1st batch) under the stock option incentive plan (phase I) of the Company
and satisfying the criteria of exercise; and (2) 5 incentive targets who met the designated grades in
the performance assessment, holding 80% of the stock option (totalling 60,480 shares) for the third
vesting period of the stock option (1st batch) under the stock option incentive plan (phase I) of the
Company and satisfying the criteria of exercise. The second vesting period of the stock option
(reserved portion) under the stock option incentive plan (phase I) targets to total 3 persons who can
exercise the rights. The 3 incentive targets have met the designated grades in the performance
assessment, and 100% of stock option for the second vesting period of the stock option (reserved
portion) under the stock option incentive plan (phase I) of the Company held by them have satisfied
the criteria of exercise, granting 265,000 shares of exercisable stock option for the second vesting
period of the stock option (reserved portion) under the stock option incentive plan (phase I).
- 182 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XVI) SHARE-BASED PAYMENTS - continued
Type of targets granted Equity-settled share-based payment expenses
Management -
(XVII) COMMITMENTS AND CONTINGENCIES
Item Closing Balance Opening Balance
Commitments that have been entered into but have not
been recognised in the financial statements
- Commitment to make contributions to the investees 2,469,326,880.09 68,882,165.47
- Commitment to acquire and construct long-term assets 3,381,159,873.68 2,891,660,439.17
Total 5,850,486,753.77 2,960,542,604.64
Item Closing Balance Opening Balance
Contingent liabilities brought by external litigations (Note 1) 963,662,048.81 804,570,710.82
Guarantee for borrowings of related parties (Note 2) 222,911,237.19 342,405,821.51
Total 1,186,573,286.00 1,146,976,532.33
Note 1: This mainly represents the significant contingent liabilities arising from the litigations
between TCP and its subsidiaries and local tax authority, employee or former employee
of TCP and its subsidiaries in Brazil at as the year end. The amount involved in the pending
litigation is RMB 881,304,260.01. At the same time, for the pending litigation existing
before the Group's acquisition of TCP, the counter compensation agreement in favour of
the Group will be executed by the original TCP shareholders who sell shares. According
to the counter compensation agreement, the original TCP shareholders need to compensate
the Group for contingent liabilities, and the amount of compensation should not exceed
the predetermined amount and the specified period. According to the latest estimates of
the management of the Company, the above pending litigation is unlikely to lead to the
outflow of economic benefits from the enterprise. Therefore, the Group has not recognised
the estimated liabilities for the contingent liabilities caused by the above pending litigation.
- 183 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XVII) COMMITMENTS AND CONTINGENCIES - continued
Note 2: As at 31 December 2025, the guarantees provided by the Group for related parties are
detailed in Note (XV) 5.
Except for the above-mentioned contingencies, as at 31 December 2025, the Group had no other
major guarantees and other contingencies that need to be explained.
(XVIII) EVENTS AFTER THE BALANCE SHEET
According to the profit distribution plan for the year 2025 passed at the 6th meeting of the 11th
Board held by the Company on 31 March 2026, the Company distributed cash dividends of RMB
special account deducted from the total share capital as of 24 March 2025, totaling RMB
approved by the shareholders' meeting.
(XIX) OTHER SIGNIFICANT EVENTS
(1) Basis for determining reporting segments and accounting policies
The key management team of the Company is regarded as the CODM, who reviews the Group's
internal reports in order to assess performance, allocate resources and determine the operating
segments. The CODM considers the operation of the Group in terms of business and locations.
Individual operating segments for which discrete financial information is available are identified
by the CODM and are operated by their respective management teams. These individual operating
segments are aggregated in arriving at the reporting segments of the Group.
From business and location perspectives, the management assesses the performance of the Group's
business operations including ports operation, bonded logistics operation and other operations.
Ports operation
Ports operation includes container terminal operation, bulk and general cargo terminal operation
operated by the Group and its associates and joint ventures.
- 184 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
(1) Basis for determining reporting segments and accounting policies - continued
Ports operation - continued
The Group's ports operation is presented as follows:
(a) Mainland China, Hong Kong and Taiwan
• Pearl River Delta
• Yangtze River Delta
• Bohai Rim
• Others
(b) Other locations outside of Mainland China, Hong Kong and Taiwan
Bonded logistics operation
Bonded logistics operation includes logistics park operation, ports transportation and airport cargo
handling operated by the Group and its associates and joint ventures.
Other operations
Other operations mainly include property development and investment and logistics business
operated by the Group's associates, property investment operated by the Group and corporate
function.
Each of the segments under ports operation includes the operations of a number of ports in various
locations within one geographic location. For the purpose of segment reporting, these individual
operating segments have been aggregated into reportable segments on geographic basis in order to
present a more systematic and structured segment information. To give details of each of the
operating segments, in the opinion of the directors of the Company, would result in particulars of
excessive length.
Bonded logistics operation and other operations include a number of different operations, each of
which is considered as a separate but insignificant operating segment by the CODM. For segment
reporting, these individual operating segments have been aggregated according to the nature of their
operations to give rise to more meaningful presentation.
There are no material sales or other transactions between the segments.
The revenue from a major customer of ports operation amounts to RMB 2,909,072,284.64,
representing 16.87% (2024: 14.25%) of the Group's operating income for 2025.
- 185 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
(2) Financial information of reporting segments
Segment financial information for 2025 is as follows:
Ports operation
Mainland China, Hong Kong and Taiwan Bonded logistics
Item Others Unallocated amount Total
Yangtze River Other locations Sub-total operation
Pearl River Delta Bohai Rim Others
Delta
Operating income 6,846,460,971.70 624,606.56 28,724,541.44 3,102,625,214.92 6,448,810,395.23 16,427,245,729.85 644,652,943.44 174,483,854.56 - 17,246,382,527.85
Operating costs 3,759,872,234.74 8,518,229.88 14,775,255.63 2,602,356,247.42 2,713,413,778.81 9,098,935,746.48 367,307,647.16 189,943,854.64 - 9,656,187,248.28
Segment operating profit (“-” for
losses)
Taxes and surcharges 38,873,568.46 1,075,744.28 1,089,548.48 53,520,036.21 216,311,120.77 310,870,018.20 26,387,183.19 24,342,004.60 5,474,194.67 367,073,400.66
Administrative expense 390,397,339.80 4,144,076.00 10,548,678.67 269,300,696.08 345,726,287.70 1,020,117,078.25 55,153,639.32 1,124,950.94 456,995,623.88 1,533,391,292.39
R&D expenses 153,732,534.35 - - 24,017,739.17 - 177,750,273.52 - - - 177,750,273.52
Financial expenses 55,546,113.57 -6,720,778.10 -1,179,741.20 49,383,507.07 77,987,521.81 175,016,623.15 28,646,078.40 3,620,138.27 1,297,558,072.27 1,504,840,912.09
Other income 128,492,668.02 1,225,456.48 46,094.81 30,416,158.41 - 160,180,377.72 12,008,552.31 237,823.39 - 172,426,753.42
Investment income (“-” for losses) 88,917,035.64 4,995,379,562.85 203,431,537.60 26,182,460.37 730,228,943.85 6,044,139,540.31 166,126,606.46 188,011,112.87 23,242,868.11 6,421,520,127.75
Including: Investment income from
associates and joint ventures
Gains from changes in fair value
(“-” for losses)
Losses on
-502,737.37 - - -170,485,159.21 -12,559,983.11 -183,547,879.69 -107,068,741.24 - - -290,616,620.93
credit impairment(“-” for losses)
Impairment losses (“-” for losses) 1,610.64 - - - -4,329,769.64 -4,328,159.00 -5,744,701.74 - - -10,072,860.74
Gains from asset disposals (“-” for
losses)
Operating profit (“-” for losses) 2,705,841,315.09 4,990,212,353.83 206,968,432.27 -3,088,142.74 3,809,326,033.18 11,709,259,991.63 232,457,809.06 143,701,842.37 -1,735,256,956.53 10,350,162,686.53
- 186 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
(2) Financial information of reporting segments - continued
Segment financial information for 2025 is as follows: - continued
Ports operation
Mainland China, Hong Kong and Taiwan Bonded logistics
Item Others Unallocated amount Total
Yangtze River Other locations Sub-total operation
Pearl River Delta Bohai Rim Others
Delta
Non-operating income 19,256,372.65 - 501,000.72 6,305,235.57 48,982,118.65 75,044,727.59 2,335,316.32 1,234,449.91 5,305,155.61 83,919,649.43
Non-operating expenses 8,469,920.94 - 318,381.18 10,079,391.06 25,144,753.70 44,012,446.88 39,632.50 324.74 13,742,994.40 57,795,398.52
Total profit (“-” for losses) 2,716,627,766.80 4,990,212,353.83 207,151,051.81 -6,862,298.23 3,833,163,398.13 11,740,292,272.34 234,753,492.88 144,935,967.54 -1,743,694,795.32 10,376,286,937.44
Income tax expenses 511,549,622.08 171,299,444.75 23,315,315.43 19,061,016.86 686,607,741.29 1,411,833,140.41 33,376,875.90 24,961,456.88 123,541.76 1,470,295,014.95
Net profit (“-” for losses) 2,205,078,144.72 4,818,912,909.08 183,835,736.38 -25,923,315.09 3,146,555,656.84 10,328,459,131.93 201,376,616.98 119,974,510.66 -1,743,818,337.08 8,905,991,922.49
Segment assets 27,957,368,640.78 64,378,877,385.23 9,053,291,782.90 26,858,430,038.04 42,154,538,054.25 170,402,505,901.20 4,625,899,703.24 16,104,573,524.32 13,881,718,365.92 205,014,697,494.68
Total assets in the financial statements 205,014,697,494.68
Segment liabilities 7,988,185,415.44 1,528,571,908.42 153,535,028.20 6,949,241,867.46 6,489,715,269.73 23,109,249,489.25 502,211,469.97 405,870,077.64 49,696,318,258.97 73,713,649,295.83
Total liabilities in the financial statements 73,713,649,295.83
Supplementary information:
Depreciation and amortisation 1,130,965,853.52 6,156,013.81 958,604.59 867,941,806.96 1,028,266,510.30 3,034,288,789.18 94,867,041.17 154,302,489.89 33,045,575.42 3,316,503,895.66
Interest income 37,407,017.36 183,144.94 205,273.19 12,285,000.71 164,893,257.45 214,973,693.65 1,632,212.09 951,685.61 161,963,235.50 379,520,826.85
Interest expense 80,502,888.97 7,531,845.28 - 61,436,579.58 316,813,564.59 466,284,878.42 25,465,633.19 7,434,952.02 1,410,822,062.18 1,910,007,525.81
Investment income from
long-term equity investments 34,016,486.64 4,995,379,562.85 203,431,537.60 17,532,425.97 730,228,943.85 5,980,588,956.91 166,126,606.46 188,011,112.87 - 6,334,726,676.24
under equity method
Long-term equity investments
under equity method
Non-current assets other than
long-term equity investments
- 187 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
(2) Financial information of reporting segments - continued
Segment financial information for 2024 is as follows:
Ports operation
Mainland China, Hong Kong and Taiwan Bonded logistics Unallocated
Item Others Total
Yangtze River Other locations Sub-total operation amount
Pearl River Delta Bohai Rim Others
Delta
Operating income 6,431,616,103.24 1,244,488.00 35,429,691.48 3,443,761,318.55 5,450,560,759.22 15,362,612,360.49 581,135,985.94 187,029,681.81 - 16,130,778,028.24
Operating costs 3,643,704,953.94 7,879,940.23 21,554,240.31 2,549,974,747.42 2,427,214,953.44 8,650,328,835.34 321,819,100.85 223,868,756.16 - 9,196,016,692.35
Segment operating profit (“-” for
losses)
Taxes and surcharges 36,099,143.56 1,108,732.05 1,142,301.89 53,246,818.52 188,035,503.59 279,632,499.61 26,824,541.00 24,354,678.99 1,522,043.55 332,333,763.15
Administrative expense 441,642,697.27 3,306,900.14 13,422,831.03 528,149,064.56 300,139,650.63 1,286,661,143.63 75,409,818.29 1,125,717.14 458,347,603.12 1,821,544,282.18
R&D expenses 175,109,423.61 - - 26,645,642.75 - 201,755,066.36 - - - 201,755,066.36
Financial expenses 37,387,836.75 7,762,806.23 -299,175.51 88,123,829.70 254,737,267.23 387,712,564.40 -4,790,361.01 14,653,358.03 1,459,790,075.45 1,857,365,636.87
Other income 143,256,859.08 1,225,442.53 26,641.94 29,233,233.29 - 173,742,176.84 11,444,551.72 223,574.73 - 185,410,303.29
Investment income (“-” for
losses)
Including: Investment income
from associates and joint 54,377,294.47 5,315,828,512.05 308,915,198.02 443,732,105.49 592,968,393.40 6,715,821,503.43 99,910,880.05 -374,726,770.23 - 6,441,005,613.25
ventures
Gains from changes in fair value
(“-” for losses)
Reversal of/(Losses on) credit
-2,173,136.38 - - -96,866,918.68 309,219,962.77 210,179,907.71 63,614,401.37 -800,000.00 - 272,994,309.08
impairment
Impairment losses (“-” for
-767,306.24 - - - - -767,306.24 - -8,113,482.64 - -8,880,788.88
losses)
Gains from asset disposals (“-”
for losses)
Operating profit (“-” for losses) 2,408,757,485.32 5,260,942,913.05 693,341,464.87 615,737,487.05 3,179,567,044.85 12,158,346,395.14 336,895,794.08 -458,216,519.07 -1,894,447,966.93 10,142,577,703.22
- 188 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
(2) Financial information of reporting segments - continued
Segment financial information for 2024 is as follows: - continued
Ports operation
Mainland China, Hong Kong and Taiwan Bonded logistics Unallocated
Item Others Total
Yangtze River Other locations Sub-total operation amount
Pearl River Delta Bohai Rim Others
Delta
Non-operating income 14,854,852.86 56,603.78 494,224.01 12,062,080.43 25,247,186.94 52,714,948.02 123,746.37 958,639.58 5,221,321.35 59,018,655.32
Non-operating expenses 7,303,147.15 8,273.40 - 11,096,299.32 41,686,171.97 60,093,891.84 18,742.91 12,929.40 10,126,537.58 70,252,101.73
Total profit (“-” for losses) 2,416,309,191.03 5,260,991,243.43 693,835,688.88 616,703,268.16 3,163,128,059.82 12,150,967,451.32 337,000,797.54 -457,270,808.89 -1,899,353,183.16 10,131,344,256.81
Income tax expenses 365,999,294.40 201,089,604.04 93,283,248.35 58,529,808.00 498,880,170.41 1,217,782,125.20 40,781,729.30 -5,407,160.82 -318,746.78 1,252,837,946.90
Net profit (“-” for losses) 2,050,309,896.63 5,059,901,639.39 600,552,440.53 558,173,460.16 2,664,247,889.41 10,933,185,326.12 296,219,068.24 -451,863,648.07 -1,899,034,436.38 8,878,506,309.91
Segment assets 26,481,857,320.70 61,773,227,599.24 9,089,898,859.40 27,215,990,680.75 41,379,476,385.11 165,940,450,845.20 4,728,601,803.38 17,454,804,395.36 13,393,994,837.51 201,517,851,881.45
Total assets in the financial statements 201,517,851,881.45
Segment liabilities 7,005,450,645.63 1,432,965,514.91 155,616,589.06 6,879,752,045.97 6,573,177,512.48 22,046,962,308.05 520,327,840.86 478,408,300.92 50,313,714,657.37 73,359,413,107.20
Total liabilities in the financial statements 73,359,413,107.20
Supplementary information:
Depreciation and amortisation 1,101,974,370.36 5,227,042.20 909,172.37 880,034,559.48 953,267,886.64 2,941,413,031.05 94,938,612.00 194,188,349.73 36,732,644.12 3,267,272,636.90
Interest income 44,376,828.93 528,801.58 435,955.95 15,351,650.68 191,275,463.28 251,968,700.42 4,716,104.32 1,208,189.24 219,537,326.43 477,430,320.41
Interest expense 84,380,450.90 8,265,931.82 - 103,358,149.34 292,588,128.85 488,592,660.91 7,626,009.14 12,338,219.71 1,706,662,228.76 2,215,219,118.52
Investment income from
long-term equity investments 54,377,294.47 5,315,828,512.05 308,915,198.02 443,732,105.49 592,968,393.40 6,715,821,503.43 99,910,880.05 -374,726,770.23 - 6,441,005,613.25
under equity method
Long-term equity investments
under equity method
Non-current assets other than
long-term equity investments
- 189 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XIX) OTHER SIGNIFICANT EVENTS - continued
(3) Degree of reliance on major customers
The total operating income derived from the top five customers of the Group is RMB
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
Item Closing Balance Opening Balance
Dividends receivable 148,813,646.87 965,690,879.89
Other receivables 1,027,288,388.73 1,447,751,781.79
Total 1,176,102,035.60 2,413,442,661.68
- 190 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
(1) Dividends receivable listed by aging
Impaired or not
Reason for and the
Investee Closing Balance Opening Balance
outstanding determination
basis
Dividend receivable aged less than 1 year 707,086.83 816,439,596.16 —— ——
Including: Port Development (Hong Kong) Co., Ltd. - 805,654,800.00 —— No
Chiwan Shipping (Hong Kong) Limited 707,086.83 209,796.16 —— No
China Ocean Shipping Agency Shenzhen
- 10,575,000.00 —— No
Co., Ltd.
Dividend receivable aged more than 1 year 148,106,560.04 149,251,283.73 —— ——
Relevant procedures
are being handled
Including: Wharf Holdings Hong Kong 147,680,363.88 147,680,363.88 and past dividends No
are being paid in
succession
Relevant procedures
are being handled
Chiwan Shipping (Hong Kong) Limited 209,796.16 1,354,519.85 and past dividends No
are being paid in
succession
Others 216,400.00 216,400.00 Lack of funds No
Sub-total 148,813,646.87 965,690,879.89 —— ——
Less: Provision for bad debts - - —— ——
Total 148,813,646.87 965,690,879.89 —— ——
- 191 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
(1) Aging analysis of other receivables
Closing Balance Opening Balance
Item Proportion Provision for Proportion Provision for
Book value Book value
(%) bad debts (%) bad debts
Within 1 year
(including 1 year)
(including 2 years)
- - - - - -
(including 3 years)
More than 3 years 711,772.07 0.07 383,456.60 711,772.07 0.05 383,456.60
Total 1,027,671,845.33 100.00 383,456.60 1,448,135,238.39 100.00 383,456.60
(2) Disclosure of other receivables by nature
Item Closing Balance Opening Balance
Amounts due from related parties 1,016,519,073.17 1,438,029,807.71
Advance payments 8,755,449.49 5,779,708.72
Others 2,397,322.67 4,325,721.96
Sub-total 1,027,671,845.33 1,448,135,238.39
Less: Provision for bad debts 383,456.60 383,456.60
Total 1,027,288,388.73 1,447,751,781.79
- 192 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
(3) Disclose by bad debt provision method
Closing Balance Opening Balance
Credit Book value Provision for bad debts Book value Provision for bad debts Reason for
Carrying Carrying
rating Proportion Proportion Proportion Proportion provision
Amount Amount amount Amount Amount amount
(%) (%) (%) (%)
A 1,027,288,388.73 99.96 - - 1,027,288,388.73 1,447,751,781.79 99.97 - - 1,447,751,781.79 ——
B - - - - - - - - - - ——
C - - - - - - - - - - ——
Not expected
D 383,456.60 0.04 383,456.60 100.00 - 383,456.60 0.03 383,456.60 100.00 -
to be recovered
Total 1,027,671,845.33 100.00 383,456.60 0.04 1,027,288,388.73 1,448,135,238.39 100.00 383,456.60 0.03 1,447,751,781.79 ——
- 193 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
(4) Movements of provisions for bad and doubtful debts
Stage 1 Stage 2 Stage 3
Item Lifetime ECL Lifetime ECL Total
(not credit-impaired) (credit-impaired)
As at 1 January 2025 - - 383,456.60 383,456.60
Balance of other receivables as at 1 January 2025
- Transfer to Stage 2 - - - -
- Transfer to Stage 3 - - - -
- Reverse to Stage 2 - - - -
- Reverse to Stage 1 - - - -
Provision for the year - - - -
Reversal for the year - - - -
Transfer out due to derecognition of
financial assets (including direct - - - -
write-down)
Other changes - - - -
As at 31 December 2025 - - 383,456.60 383,456.60
(5) Details of bad debt provision
Changes for the year
Effect of
Opening Charge-off Closing
Category Recovery or changes in Other
Balance Provision or write- Balance
reversal the scope of changes
off
consolidation
Provision for bad debts
assessed on an 383,456.60 - - - - - 383,456.60
individual basis
Provision for bad debts
assessed on a portfolio - - - - - - -
basis
Total 383,456.60 - - - - - 383,456.60
(6) The Company has no recovery or reversal of significant provision for bad debts in the
current year.
- 194 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
(7) The Company has no other receivables written off during the year.
(8) The top five balances of other receivables at the end of the year classified by debtor
Proportion to Provision for credit
Name of entity Book value Aging total other impairment at the Nature
receivables (%) end of the year
Wharf Holdings Hong Within 1 year
Kong (including 1 year)
Within 1 year
Dongguan Port Affairs 283,298,800.00 27.57 - Loan to related parties
(including 1 year)
China Merchants Within 1 year
Advance payment for
Investment Development 5,710,073.55 (including 1 year), 0.56 -
transactions
Company Limited 1-2 years
Shekou Container Within 1 year
Terminal Co., Ltd. (including 1 year)
Chiwan Container Within 1 year
Terminal Co.,Ltd (including 1 year)
Total 1,016,057,954.72 —— 98.87 - ——
- 195 -
CHINA MERCHANTS PORT GROUP CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
(Unless otherwise specified, the monetary unit shall be RMB)
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
(1) Breakdown of long-term equity investments
Changes for the year Provision for
Investment income Other impairment
Investee Investment cost Opening Balance Other equity Cash dividends or Provision for Closing Balance
Increase Decrease under equity comprehensive Others at the closing
movements profit declared impairment
method income balance
I. Subsidiaries
Shenzhen Chiwan Port Development
Co., Ltd. (Note 1)
Zhanjiang Port 3,381,825,528.52 3,381,825,528.52 - - -- -- -- -- -- -- 3,381,825,528.52 -
Chiwan Container Terminal Co., Ltd. 421,023,199.85 421,023,199.85 - - -- - -- -- -- - 421,023,199.85 -
Sanya Merchants Port Development
Co., Ltd.
Shenzhen Chiwan International Freight
Agency Co., Ltd. (Note 1)
Wharf Holdings Hong Kong (Note 1) 1,070,000.00 1,070,000.00 - -329,991.42 -- -- -- -- - -- 740,008.58 -
CM International Tech 130,462,575.02 130,462,575.02 - - -- -- -- -- -- - 130,462,575.02 -
Dongguan Shenchiwan Port Affairs
Co., Ltd. (Note 1)
Chiwan Shipping (Hong Kong) Limited
(Note 1)
Shenzhen Chiwangang Container
Co. Ltd.
CM Port 181,479,422.23 181,479,422.23 - - -- -- -- - -- - 181,479,422.23 -
Dongguan Shenchiwan Wharf
Co., Ltd.(Note 1)
Shenzhen Chiwan Tugboat Co.,
Ltd.(Note 1)
Ports Development (Hong Kong)
Limited
Guangdong Yide Port Co., Ltd. 131,866,700.00 131,866,700.00 - - - - -- - - - 131,866,700.00 -
Zhoushan RoRo 193,314,814.00 106,104,786.00 - - - - - - -- - 106,104,786.00 43,605,014.00
Shunkong Port 240,013,200.00 240,013,200.00 - - - -- - - - -- 240,013,200.00 -
Sub-total 34,735,421,366.37 34,648,211,338.37 392,406,780.85 -392,406,780.85 -- -- -- -- -- -- 34,648,211,338.37 43,605,014.00
II. Associates - - - - -- - - -- -
China Merchants Bonded Logistics
Co., Ltd.
China Merchants Northeast Asia
Development & Investment Co., Ltd.
Ningbo Zhoushan Port Company
Limited
Antong Holdings 771,935,435.37 963,996,902.74 - -135,217,143.73 69,159,085.92 -83,346.28 - -- - - 897,855,498.65 -
Sub-total 17,897,238,268.06 19,911,133,796.29 - -135,217,143.73 1,197,201,208.21 -21,795,019.32 16,641,133.21 -615,940,287.94 -- - 20,352,023,686.72 -
III. Joint ventures - - - - - -
Fujian Zhaohang Logistics Management
Partnership (Limited Partnership)
Shenzhen Gangteng Internet
Technology Co., Ltd.
Yantai Port Group Laizhou Port
Co., Ltd.
Sub-total 1,214,655,300.00 1,449,937,037.64 - - 40,667,006.31 -69,599.82 344,641.31 -19,271,356.08 - - 1,471,607,729.36 -
Total 53,847,314,934.43 56,009,282,172.30 392,406,780.85 -527,623,924.58 1,237,868,214.52 -21,864,619.14 16,985,774.52 -635,211,644.02 - -- 56,471,842,754.45 43,605,014.00
- 196 -
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2025
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
(1) Breakdown of long-term equity investments - continued
Note 1: This year, our company will transfer 90% equity of Shenchiwan Tugboat, 43.75% equity
of Dongguan Wharf, 41.45% equity of Dongguan Port Affairs, 100% equity of Chiwan
Shipping, and 100% equity of Shenchiwan Freight Agency to Shenchiwan Development
for free. The subsidiary of our company, Wharf Holdings Hong Kong, transferred its 43.55%
equity in Dongguan Wharf, 56.25% equity in Dongguan Port Affairs, 10% equity in
Shenchiwan Tugboat, and 4% equity in Chiwan Container Terminal Co.,Ltd. To
Shenchiwan Development.
Current Year Prior Year
Item
Income Cost Income Cost
Principal operation - - - -
Other operations 21,190,068.20 3,739,443.84 18,456,183.80 3,739,443.84
Total 21,190,068.20 3,739,443.84 18,456,183.80 3,739,443.84
- 197 -
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2025
(XX) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
- continued
(1) Details of investment income
Item Current Year Prior Year
Income from long-term equity investments 2,573,422,379.01 2,414,410,688.27
Including: Income from long-term equity investments
accounted for using the equity method
Income from long-term equity investments
accounted for using the cost method
Income from disposal of equity -10,518,025.51 -
Investment income from disposal of financial assets held
for trading
Income from investments in other equity instruments 9,664,500.00 10,575,000.00
Total 2,626,531,594.62 2,453,196,389.65
- 198 -
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2025
In accordance with Regulation on the Preparation of Information Disclosures by Companies Issuing
Securities No. 9 – Calculation and Disclosure of Return on Net Assets and Earnings Per Share (2010
revised) issued by the CSRC and relevant accounting standards, the Group’s weighted average return on
net assets, earnings per share and diluted earnings per share for the year of 2025 are calculated as follows:
Weighted average EPS
Profit in reporting period
return on net assets (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders 7.3513% 1.8540 1.8537
Net profit attributable to ordinary shareholders after
deducting non-recurring profit or loss
- 199 -
CHINA MERCHANTS PORT GROUP CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2025
In accordance with the provisions of China Securities Regulatory Commission's Explanatory
Announcement No. 1 on Information Disclosure for Companies Making Public Offering - Non-recurring
Profit or Loss (Revised in 2023), the Group's non-recurring profit or loss for the year ended 31 December
Item Amount Remark
Gains or losses on disposal of non-current assets, including those charged off for
-18,117,060.19
which provision for impairment of assets has been made
Government grants recognised in profit or loss (other than grants which are
closely related to the Company's business, in line with the national regulations,
enjoyed under established standards and have a continuous impact
on the Company's profit or loss)
Income earned from lending funds to non-financial institutions and recognised
in profit or loss
The excess of attributable fair value of identifiable net assets over the
consideration paid for subsidiaries, associates and joint ventures
Gains or losses on exchange of non-monetary assets 3,320,297.91
Gains or losses on entrusted investments or asset management -
Losses on assets due to force majeure, e.g., natural disasters -
Gains or losses on debt restructuring -
Lump-sum costs incurred by the enterprises as a result of the discontinuation of
-14,869,617.41
relevant business activities, e.g., expenditure for layoff of employees, etc.
Gains from transactions with unfair transaction price -
Net profit or loss of subsidiaries recognised as a result of business combination of
enterprises under common control from the beginning of the year up to the -
business combination date
Gains or losses arising from contingencies other than those related
to normal operating business
Gains or losses from changes in fair value of financial assets and financial
liabilities held by non-financial enterprises other than effective hedging operation
relating to the Company's normal operations, and gains or losses from disposal of
financial assets and financial liabilities
Reversal of provision for accounts receivable that are tested for
impairment individually
Gains or losses on entrusted loans -
Gains or losses from changes in fair value of investment properties that are
subsequently measured using the fair value model
One-time effect of adjustments in tax laws and accounting laws and regulations
on profit or loss for the period
Custodian fees earned from entrusted operation -
Share-based payment expenses recognised once due to the cancellation or
modification of equity incentive plans
For cash-settled share-based payments, gains or losses arising from changes
in fair value of employee benefits payable after the vesting date
Other non-operating income or expenses other than above 37,794,746.74
Other profit or loss that meets the definition of non-recurring profit or loss 3,856,538.50
Sub-total 363,189,785.04
Tax effects -41,848,650.46
Effects of non-controlling interests (after tax) -147,536,278.02
Total 173,804,856.56
- 200 -
首页
微信公众号
证券之星APP
