Annual Report 2021

ANNUAL REPORT 2021 125 4. REVENUE The principal activities of the Group comprise ports operation, bonded logistics operation and property investment. The following is an analysis of the Group’s revenue from its major services offered during the year. 2021 2020 HK$’million HK$’million Terminal handling charge, representing loading of cargos and containers on and off vessels at the Group’s port terminals, stevedoring and the auxiliary services 11,069 8,304 Warehousing services income, representing temporary storage of cargos and containers, customs clearance services and the auxiliary services 560 469 Revenue from contracts with customers 11,629 8,773 Gross rental income from investment properties (Note) 221 172 11,850 8,945 Note: Direct operating expenses incurred for gross rental income from investment properties amounted to HK$55 million (2020: HK$54 million) during the year ended 31 December 2021. Performance obligations for contracts with customers Terminal handling services The Group provides terminal handling services as described above. Such services are recognised as a performance obligation satisfied over time as the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs. Revenue is recognised for these services based on the contract prices, net of discounts, if any. Refund liabilities are recognised at the end of each reporting period for expected discounts payable to customers in relation to sales. Warehousing services The Group provides warehousing services as described above. Such services are recognised as a performance obligation satisfied over time as the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs. Revenue is recognised for these services based on the contract prices.