Annual Report 2021

Chairman’s Statement CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 8 build a value-creating operation management system through digital methods such as smart management platform. With regard to marketing and commerce, the Group further strengthened in-depth cooperation with major shipping companies, and meanwhile jointly formulated service strategies with various subordinate units to provide “one- stop” services for major cargo owners. OPERATING RESULTS In 2021, the Group’s revenue reached HK$11,850 million, representing an increase of 32.5% year-on-year, which was mainly due to the high business volume of ports operation. Profit attributable to equity holders of the Company amounted to HK$8,144 million, representing an increase of 58.1% over 2020. Of this amount, recurrent profit Note 1 was HK$7,537 million, increased by 81.3% over 2020. DIVIDENDS The Board of Directors of the Company has resolved to propose at the forthcoming Annual General Meeting the payment of a final dividend of 72 HK cents per ordinary share. Together with the interim dividend of 22 HK cents per share, the total dividend for the year amounted to 94 HK cents per ordinary share, representing a full-year payout ratio of 43.6%. Subject to the approval by shareholders at the forthcoming Annual General Meeting, the final dividend for ordinary shares will be payable on or around 22 July 2022 to shareholders whose names appear on the register of members of the Company on 13 June 2022. REVIEW FOR THE YEAR In 2021, the global situation of COVID-19 pandemic was complex and severe. In the first half of the year, the pandemic in Europe and the United States was eased thanks to the accelerated vaccination process, which led to a recovery of consumption side in global trade. However, in the second half of the year, the epidemic situation resumed. In addition to the global rebound of COVID-19 arising from the spread of COVID-19 Delta variant to various countries worldwide, the COVID-19 Omicron variant also spurred another wave of outbreaks in major regions around the world at the end of the year, increasing the uncertainties of global economic recovery significantly. During the year, due to repeated epidemics, inflation, extreme weather and other factors, the supply capacity on the production side was under pressure and supply disruptions generally lasted longer than expected, while the recovery on the consumption side was differentiated in different regions and sub-segments. According to the “World Economic Outlook” report published by the International Monetary Fund (“ IMF ”) in January 2022, the global economy was expected to increase by 5.9% year- on-year in 2021. Developed economies, emerging economies and developing economies were expected to increase by 5.0% and 6.5%. In 2021, in the face of the complicated and challenging international environment, China organised and promoted pandemic prevention and control along with economic and social development. Its efforts effectively facilitated the restoration of normal production and everyday life, and realised significant strategic results in pandemic prevention and control. In the meantime, China accelerated the establishment of the new development model with internal circulation in the domestic market as the mainstay and the dual circulation in domestic and international market facilitating each other. As a result, China’s economy recovered steadily. The Group’s ports operation recorded a total container throughput of 135.04 million TEUs, representing a 12.0% year-on-year growth, and bulk cargo volume of 567 million tonnes, representing an increase of 38.0% year- on-year. Looking into the regional performance, Mainland China, Hong Kong and Taiwan contributed an aggregate Note 1 Profit attributable to equity holders of the Company net of non-recurrent gains after tax. Non-recurrent gains include: for 2021, net change in fair value of financial assets and liabilities at fair value through profit or loss, net change in fair value of investment properties, gain on modification of contract terms for a concession arrangement, net gain on deemed disposal of a subsidiary partial interest in associates; while for 2020, net change in fair value of financial assets and liabilities at fair value through profit or loss, net change in fair value of investment properties, net gain on resumption of certain land parcels at Shantou, goodwill impairment loss of a subsidiary and gain on discontinuance of equity accounting for a joint venture.