Annual Report 2021

23 ANNUAL REPORT 2021 Bonded logistics operation In 2021, the Group’s bonded logistics business continued to pursue the development direction of diversifying integrated services and enhanced the utilisation rate of resources at the existing warehouses and yards so as to respond to market changes and the unstable situation under the pandemic. The average utilisation rate of the warehouses of China Merchants Bonded Logistics Co., Ltd. in Shenzhen was 98%, as a result of active exploration of new clients and business models. China Merchants International Terminal (Qingdao) Co., Ltd. stabilized major customers and reduced the impact of the pandemic, and accordingly, its average utilisation rate of the warehouses reached 80%. Tianjin Haitian Bonded Logistics Co., Ltd., which is an associate of the Group, recorded an average utilisation rate of 85% of its warehouses. In Djibouti International Free Trade Zone, the wholly-owned bonded warehouse recorded an average utilisation rate of 100%, and the average utilisation rate of the bonded warehouse, which the Group invested in, was 100%. In 2021, the total cargo volume handled at the three major air cargo terminals in Hong Kong amounted to 4.24 million tonnes, up by 11.0% as compared with last year. Asia Airfreight Terminal Company Limited, which is an associate of the Group, handled a total cargo volume of 0.86 million tonnes, representing an increase of 11.3% year-on-year and a market share of 20.3%, up by 0.2 percentage point as compared with last year. FINANCIAL REVIEW For the year ended 31 December 2021, the Group recorded revenue of HK$11,850 million, up 32.5% year-on-year, which was mainly due to the high business volume of ports operation. Profits attributable to equity holders of the Company amounted to HK$8,144 million, representing an increase of 58.1% year-on-year, which included a net gain on deemed disposal of partial interest in associates of HK$407 million (net of tax) during the year, while the amount for last year included a net gain of HK$775 million (net of tax) recognised by the Group from the resumption of certain land parcels at Shantou by the government, the gain on discontinuance of equity accounting for a joint venture of HK$912 million (net of tax) and goodwill impairment loss of a subsidiary of HK$621 million. The recurrent profit Note 1 increased by 81.3% year-on-year to HK$7,537 million, which was due to the Group’s increase in revenue and share of profits of associates. Total assets of the Group increased by 5.1% from HK$170,064 million as at 31 December 2020 to HK$178,690 million as at 31 December 2021, which was mainly due to the increase in share of profits in associates. In addition, the total liabilities of the Group decreased by 4.5% from HK$56,429 million as at 31 December 2020 to HK$53,892 million as at 31 December 2021 due to repayment of bank loans. As at 31 December 2021, net assets attributable to equity holders of the Company was HK$98,262 million, up 11.8% as compared to that as at 31 December 2020. This was mainly attributed to the increase in profits attributable to equity holders of the Company. The financial statements of the Group’s foreign investments are in Renminbi, Euro, United States dollar or Brazilian Real and any exchange difference so arising from retranslation of these financial statements has been recognised in the reserve of the Group. The Group has developed a sound foreign exchange rate risk management mechanism to prevent the impact arising from foreign exchange rate fluctuation on the Group, and has maintained foreign exchange risk at a manageable level. Note 1 Profits 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 and 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.