Annual Report 2023

Notes to the Consolidated Financial Statements For the year ended 31 December 2023 132 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 4. REVENUE (CONTINUED) Performance obligations for contracts with customers and revenue recognition policies Terminal handling services The Group provides terminal handling services as described above. Such services are recognised as a performance obligation satisfied over time as the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs. Revenue is recognised for these services based on the contract prices, net of discounts, if any. Refund liabilities are recognised at the end of each reporting period for expected discounts payable to customers in relation to sales. Warehousing services The Group provides warehousing services as described above. Such services are recognised as a performance obligation satisfied over time as the customer simultaneously receives and consumes the benefits provided by the Group’s performance as the Group performs. Revenue is recognised for these services based on the contract prices. 5. SEGMENT INFORMATION The key management team of the Company is regarded as the CODM, who reviews the Group’s internal reports in order to assess performance, allocate resources and determine the operating segments. The CODM manages the Group’s operations by divisions from both business and geographic perspectives. Individual operating segments for which discrete financial information is available are identified by the CODM and are operated by their respective management teams. These individual operating segments are aggregated in arriving at the reporting segments of the Group. From business and financial perspectives, management assesses the performance of the Group’s business operations including ports operation, bonded logistics operation and other operations. (i) Ports operation includes container terminal operation, bulk and general cargo terminal operation operated by the Group and its associates and joint ventures. The Group’s ports operation are presented as follows: (a) Mainland China, Hong Kong and Taiwan ‧ Pearl River Delta ‧ Yangtze River Delta ‧ Bohai Rim ‧ Others (b) Other locations outside of Mainland China, Hong Kong and Taiwan