Annual Report 2021

Chairman’s Statement CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 10 As for comprehensive development, the Group committed to improving the global network layout and business synergies in overseas projects, and deepened the implementation of “Port-Park-City” model in overseas regions. In 2021, under the adverse impact of the continuous spread of the pandemic, the promotion activities of induction of business and investment in overseas logistic parks steadily progressed. The number of contracted enterprises in the HIPG industrial zone and Djibouti International Free Trade Zone reached 35 and 196 respectively. The comprehensive development made sound progress. With regard to innovative development, the Group actively explored model innovation, created an innovative and dynamic development platform, and cooperated closely with relevant partners to jointly build an international hydrogen energy industry demonstration port. The Group actively accelerated industrial digitalisation, and established a smart port technology innovation laboratory. The Group continued to promote the construction of Mawan Smart Port which was completed during the year and officially put into operation. The Group continued to explore the coordinated ports in the Greater Bay Area, which greatly enhanced the efficiency of both the terminals and container turnover. Regarding capital operation, the Group continued to promote the two-wheel drive model of “asset operation + capital operation” and enhance the efficiency of its assets by improving the medium and long-term capital operation plan, starting from optimising the dual platform structure, market value management and asset restructuring. The Group promoted the transformation, upgrading of existing terminals and the extension of its industrial chain, and further enhanced the Company’s influence In respect of operation management, the Group continued to uphold its strategy, following the direction of “empowerment, professionalism and value” and aiming at five core elements, namely “management standard, teams of experts, closed- loop procedure, information system and benchmarking enhancement”, so as to promote the development of a global operation and control system. During the year, the intelligent management platform had been put into trial operation. The subsystem of the lifecycle asset management system launched to further optimise the overall management system through digitalisation. The Group improved institutional systems and internal control system to enhance risk management and controls. As for marketing and commerce, the Group kept cooperating with major shipping companies and improved the port conditions to ensure routes stability. During the year, a number of intra-Asia and trans-Pacific shipping routes were newly added to the West Shenzhen Port Zone. The Group put more efforts to maintain the existing routes and expand new routes. At the same time, the Group set up a major customer service team and worked with various subordinate units to formulate service strategies, starting with “customized services”, focusing on large cargo owners with large container throughput volume, strong representation of cargo types and strong influence on routes connection, and providing “one-stop” services to enhance customer stickiness. The Group improved the system of cargo transportation and logistics, and fully enhanced and expanded the hinterland of supply sources.