Annual Report 2021

Management Discussion and Analysis 22 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED continued to be steadily progressed. As of the end of 2021, 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. As for innovative development, the Group continued to revise and improve its digitalisation plan in accordance with the requirements of industry development and technological development trends, promoted the construction of the CMCore platform, the CM ePort platform and the Smart Management platform, and improved the relevant implementation plans, enhanced the digitalisation level of the industry and continued to promote the construction of Mawan Smart Port. Since its operations, the Mawan Smart Port had received unanimous praise from the industry and had won a number of awards, including the Gold Award in the 4th “Blossom Cup” 5G Application Competition Benchmarking Competition organized by the Ministry of Industry and Information Technology of China and the Sustainability Award from the International Association of Ports and Harbours. The Group actively explored model innovation, worked with relevant partners to build a demonstration port for the international hydrogen energy industry and set up a smart port technology innovation laboratory. The Group continued to expand the combined ports in the Greater Bay Area to ten feeder terminals such as Shunde and Beijiao in order to continuously boost trade facilitation in the Greater Bay Area. In terms of capital operation, the Group continued to promote the two-wheel drive model of “asset operation + capital operation” and continue to enhance the efficiency of the assets by improving medium and long-term capital operation plan, starting from optimizing the dual platform structure, market value management and asset restructuring. It promoted the transformation and upgrading of existing terminals and the extension of its industrial chain, further enhanced the Company’s influence through its capital and internationalisation platforms. In respect of operation management, the Group continued to uphold its strategy, following the direction of “empowerment, professionalism and value”. The Group developed 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, establish an operation management system with sustainable value creation, link the improvement of quality and efficiency with performance appraisal and greatly integrated the improvement of quality and efficiency with strategic goals. The intelligent management platform was put into trial operation. The subsystem of the lifecycle asset management system was put into trial operation to further optimize the overall management system through digitalisation. The Group improved institutional systems and optimized its control model, promoted the construction of a risk management information platform, and improved the internal control system continuously with optimizing risk preference indicators to complete overseas risk quantitative management reports and establish risk warnings to enhance risks control level. With respect to marketing and commerce, the Group kept cooperating with major shipping companies to improve the port conditions and ensure the stability of shipping routes. In 2021, the Group continuously strengthened its marketing and business promotion in the West Shenzhen Port Zone, a number of intra-Asia and trans-Pacific shipping routes were newly added, and further strengthened its in-depth cooperation with major shipping companies 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 cargo volumes, strong representation of product types and strong influence on route connection, and providing “one-stop” services to enhance customer stickiness. The Group promoted the improvement of the collection and transportation system, earnestly consolidated and expanded the hinterland of supply courses, and expanded network of combined seaports and inland dry ports in the Pearl River Delta.