Annual Report 2019

Report of the Directors 100 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED The Company’s auditor was engaged to report on the Group’s continuing connected transactions in accordance with Hong Kong Standard on Assurance Engagements 3000 (Revised)“Assurance Engagements Other Than Audits or Reviews of Historical Financial Information” and with reference to Practice Note 740 “Auditor’s Letter on Continuing Connected Transactions under the Hong Kong Listing Rules” issued by the Hong Kong Institute of Certified Public Accountants. The auditor has issued their unqualified letter containing their findings and conclusions in respect of the continuing connected transactions disclosed by the Group in paragraph (j) of this section in pages 93 to 97 of the Annual Report in accordance with Rule 14A.56 of the Listing Rules. A copy of the auditor’s letter has been provided by the Company to the Stock Exchange. MANAGEMENT CONTRACTS No contract concerning the management and administration of the whole or any substantial part of the business of the Company had been entered into or existed during the year. MAJOR CUSTOMERS AND SUPPLIERS The aggregate amount of sales and purchases attributable to the Group’s five largest customers and suppliers represented less than 30% of the Group’s total sales and purchases in 2019, respectively. The Group has strived to maintain a good relationship with its major customers and suppliers. At no time during the year had the Directors, their close associates or any shareholder (whom to the knowledge of the Directors own(s) more than 5% of the Company’s issued shares) had any interest in these major customers and suppliers. EMPLOYEES The Group’s key relationships with its employees are set out in the Management Discussion and Analysis on pages 14 to 29 of this Annual Report. PUBLIC FLOAT Based on the information that is publicly available to the Company and within the knowledge of its Directors, as at the date of this report, there is sufficient public float of not less than 25% of the Company’s issued shares as required under Rule 8.08 of the Listing Rules. AUDITOR The financial statements have been audited by Deloitte Touche Tohmatsu who would retire and, being eligible, offer themselves for re-appointment at the forthcoming annual general meeting. There has been no change in the Company's auditor in any of the preceding three years. On behalf of the Board Deng Renjie Chairman Hong Kong, 15 April 2020