招港B：2023年年度报告（英文版）

CHINA MERCHANTS PORT GROUP CO., LTD. ANNUAL REPORT 2023 Date of disclosure: 2 April 2024 China Merchants Port Group Co., Ltd. Annual Report 2023 1 Chairman’s Statement Dear Shareholders, I hereby present to you the annual report of China Merchants Port Group Co., Ltd. and its subsidiaries (the Company or CMPort) for the year ended 31 December 2023. On behalf of the Board, I would like to express my sincere gratitude to all of you for your long-term support to the Company. The Company is a crucial vehicle for China Merchants Group to implement the development tasks of the "14th Five-Year Plan" and the strategy of Guangdong-Hong Kong-Macao Greater Bay Area. Serving not only as the core enterprise of China Merchants Group's port sector, the Company is also the capital operation and management platform for the group's global port assets, hence playing a key role in the consolidation and synergistic development of China Merchants Group’s port assets. The Company has become a world-leading port investor, developer and operator. By implementing new development concepts based on the new development stage and building a new development pattern, CMPort will strive to promote its high-quality development and become a high-quality worldclass comprehensive port service provider. While cultivating innovative businesses with a focus on core port businesses, strengthening the supporting role of scientific and technological innovation and building an independent and controllable terminal operating system, it will strive to build a smart and diverse port ecosystem. By actively exploring and participating in global port resource integration opportunities, optimizing the port network system on a continuous basis and strengthening external and internal coordination, we will provide customers with more economical, higher-quality, and more efficient service solutions and deepen strategic cooperation with customers, thus creating greater value for the Company and more returns for shareholders, and making an important contribution to maintaining the safety, stability, and smoothness of the supply chain. REVIEW FOR THE YEAR In 2023, the global economy continued to step a slow recovery from the influence of geopolitics and the conflict between Russia and Ukraine, showing some resilience. Extreme situations such as economic recession and deep-seated financial crisis that the international community was worried about have not occurred, but economic activity remains at a weak level and sluggish economic recovery still plagues most countries. Global economic growth has been keeping up a slower and uneven development as divergence among nations was increasingly intensifying, especially in emerging markets and developing economies. With the differentiation between regions becoming apparent and uncertainties increasing, which brought great challenges to the daily operation and management of enterprises. Facing the complicated external environment, the Company took "high-quality development" as its central task and "lean operation and global layout" as its guidance, to solidly advance endogenous growth as well as innovation and upgrading and give a strong and effective respond to the impact of unexpected factors, hence successfully completed various business tasks and enjoyed a good situation of high-quality development. Financial performance: In 2023, the Company achieved operating income of RMB15.75 billion and a total profit of RMB8.8 billion. The net profit attributable to the parent company was RMB3.57 billion, up by 6.98% year-on-year, and the operating performance increased steadily, handing over a China Merchants Port Group Co., Ltd. Annual Report 2023 2 satisfactory answer. Business performance: In terms of container business, the Company handled a total container throughput of 180.195 million TEUs in 2023, up by 23.5% year-on-year, of which the container throughput handled by mainland port projects was 140.306 million TEUs, up by 33.4% year-on year; In terms of bulk cargo business, the Company handled a bulk cargo volume of 1,250 million tonnes in 2023, representing an increase of 69.6% year-on-year, mainly because the Company, as a strategic investor, completed the subscription for the A Shares of Ningbo Port issued under the non-public issuance of A Shares in 2021, and the business volume of Ningbo Port has been included in the Company's statistics from October 2022, bringing 31.374 million TEUs of containers and 490 million tonnes of bulk cargo increments in 2023. In terms of key priorities, first, we achieved new breakthroughs in overseas expansion. The Company invested in the construction of the South Asia Commercial and Logistics Hub to further enhance the core competitiveness of overseas homebase ports. China Merchants Port, the holding subsidiary of the Com