Annual Report 2021

Management Discussion and Analysis 20 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Taiwan Kao Ming Container Terminal Corp. in Kaohsiung, handled a total container throughput of 2.03 million TEUs, representing an increase of 26.9% year-on-year, which was mainly driven by additional volume of containers in other regions suffering from severe port congestion due to the pandemic. Overseas operation In 2021, a total container throughput handled by the Group’s overseas projects increased by 16.3% year-on- year to 33.57 million TEUs. Among which, CICT in Sri Lanka handled a container throughput of 3.06 million TEUs, up by 4.4% year-on-year. Hambantota International Port Group (Private) Limited (“ HIPG ”)’s RORO and bulk cargo operations are well developed, and its RORO terminal handled 0.54 million vehicles, up by 38.0% year-on-year. The bulk cargo throughput reached 1.56 million tonnes, up by 25.6% year-on-year, which was mainly benefitted from the growing import throughput volume of raw materials by major customers as the cement market demand was rebounded. Container throughput handled by LCT in Togo increased by 19.2% year-on-year to 1.63 million TEUs, which was mainly attributable to the stable growth in container throughput volume from major customers. Benefitted from the increase in local imported container volume driven by the resumption of work and production of the local enterprises in Brazil, TCP in Brazil handled a container throughput of 1.10 million TEUs for the year, up by 12.0% year-on-year. Container throughput handled by Tin-Can Island Container Terminal Ltd. in Nigeria was 0.32 million TEUs, representing an increase of 5.6% year-on-year. Affected by the economic downturn due to political instability, Port de Djibouti S.A. in Djibouti handled a container throughput of 0.69 million TEUs, down by 19.4% year-on-year, and a bulk cargo volume of 4.55 million tonnes, up by 0.4% year-on-year. Container throughput handled by Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret Anonim Ş irketi in Turkey was 1.25 million TEUs, representing an increase of 2.5% year-on-year; while bulk cargo volume handled was 0.11 million tonnes, up by 62.1% year-on-year, which was mainly due to the increase in export of construction materials. As Terminal Link completed the new acquisition of eight terminals since the end of March 2020, it handled a container throughput of 25.52 million TEUs, up by 20.3% year-on-year. Strategic deployments in the ports operation In 2021, by continuing to adhere to the general tone of making progress while remaining stable, embarking on a new development stage, being committed to a new development philosophy, building a new pattern of development as well as insisting on the improvement of quality and efficiency, the Group strived for breakthroughs in seven key aspects, namely the development of homebase port, overseas business, comprehensive development, innovative development, capital operation, operation management, and marketing and commerce. During the year, there were three highlights on the Group’s business operation. First of all, the overall volume of the Group, both containers and bulk cargos, recorded a significant increase. With the overall positive trend of the port industry, the volume of the Group’s West Shenzhen and overseas homebase port hit record high again. Secondly, the Group has always been highly concerned with pandemic prevention and control, and grasped the bottom line to safeguard China under the severe and complex situation of pandemic. The Group was able to maintain a high standard for the daily pandemic prevention and control, ensuring a stable and safe situation with no infection in Mainland China as well as a situation that the pandemic can be controlled at overseas locations. Meanwhile, the joint prevention and