Annual Report 2019

Management Discussion and Analysis 26 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED ASSETS CHARGE As at 31 December 2019, bank loans of HK$474 million (2018: HK$217 million) borrowed by subsidiaries of the Company were secured by property, plant and equipment with carrying value of HK$417 million (2018: HK$413 million) and right-of-use assets with carrying value of HK$221 million (2018: land use rights of HK$184 million). Loan from a fellow subsidiary borrowed by a subsidiary of the Company amounting to HK$167 million (2018: Nil) was secured by right-of-use assets with carrying value of HK$135 million (2018: Nil). In addition, the entire shareholdings in two subsidiaries owned by the Company and its subsidiary were pledged to various banks for bank loans of HK$2,884 million (2018: HK$3,429 million). EMPLOYEES AND REMUNERATION As at 31 December 2019, the Group employed 7,947 full- time staff, of which 234 worked in Hong Kong, 5,131 worked in Mainland China, and the remaining 2,582 worked overseas. The remuneration paid by the Group for the year amounted to HK$1,777 million, representing 26.9% of the total operating expenses of the Group. Centred on the established development strategy, the Group formulated and continued to optimise its salary and incentive system based on the concept of refined management on human resources. Adjustments to individual’s remuneration were reviewed annually with reference to the Group’s results, individual’s performance, human resources market and the general economy. Moreover, the Group offers discretionary year-end bonus as a reward to its staff for their contribution and efforts to the Group. The Group also operates a share option scheme, under which qualified staff may exercise their options at an agreed price to subscribe for shares of the Company. The remuneration of directors has been determined with reference to the individual’s duties and responsibilities in the Company, experience and the prevailing market conditions. The Group also attaches importance to employees’ continuing development. Considering the business development and the requirements of the position, the Group has invited experts and professional institutions to provide various online and offline training courses that were up-to-date, abundant and diversified for employees in different positions and levels. Continuous improvement of the required skills of employees in various positions provided support to the Group’s development from the perspective of human resources. The Group at all times strives to maintain good relationships with its employees and is committed to complying with the Employment Ordinance, the Minimum Wage Ordinance and ordinances relating to the occupational safety of employees of the Group, so as to safeguard the interests and well-being of its employees. CORPORATE SOCIAL RESPONSIBILITY The Group values and actively takes up corporate social responsibilities. While improving its operating results and generating returns for shareholders, the Group also effectively fulfils its social responsibilities towards its employees, the society and the environment to facilitate sustainable development of the business and society. The Group aims to build green ports, and has formulated rules and regulations to manage energy conservation and environmental protection, which further clarified the work content and mechanism of comprehensive supervision and management of energy conservation and environmental protection, identified and responded to risks brought by climate change, and strengthened assessment and management of environmental risks. The Group continued to develop and apply new energy-saving and environmentally- friendly technologies and products. New energy conservation technologies and products, such as “Shore-Powered Supply for Vessels ( 船舶岸基供電 )” and “Substitution of Fuel- Powered Equipment with Electricity-Powered Equipment ( 油 改電 )”, continued to expand the scope of their applications. Meanwhile, the Group particularly monitored, regulated and handled, among others, general and hazardous wastes, air pollution, dust pollution, water pollution and noise pollution, in compliance with specific laws and regulations. While encouraging green office and organising various green social welfare activities, the Group has promoted the construction of green supply chains with improving results of energy conservation and emission reduction, as well as environmental management capabilities.