Annual Report 2023

Chairman’s Statement CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 10 In 2024, the imbalance between supply and demand in the shipping market will become more prominent, and freight rates are expected to remain weak. Coupled with the continued tension in the Red Sea region forcing ships to be rerouted around the Cape of Good Hope and the declining navigation capacity of the Panama Canal due to extreme weather, as well as the continuous disturbance of shipping capacity control, cost reduction measures and alliance cooperation changes of shipping companies, the container shipping market may enter a new normal of complex and volatile situation with a slow growth. In 2024, the Group will actively integrate into the overall development of the country, seize the development opportunities of China to accelerate the construction of an internal and external connectivity, safe and efficient logistics network, implement the new development concept, and implement the requirements of high-quality development. The Group will focus on digital and intelligent technology and green technology to improve its core competitiveness, bear the responsibilities and missions on the new journey, give full play to the industrial control and security support, and enhance core functions. First, we will adhere to the original aspiration and be consistent to it with a firm belief to build strategic strength. The Group will strengthen the capacity building of the headquarters, enhance the expansion capacity of overseas terminals, and continue to promote the implementation of various strategies. Second, we will consolidate the foundation for new development, adapt to changes, and promote reform with strong innovation to create a leading force. The Group will build differentiated competitive advantages of digital intelligence technology, seize the development trend of green technology, and strengthen collaborative innovation to realize the transformation and upgrading of the main port business. Third, we will cultivate professionally through intensive cultivation, continuous optimization, and lean operations. Adhering to the improvement of quality and efficiency, the Group will improve the working mechanism and team building of the Center of Excellence (COE), comprehensively implement lean management, strengthen cost control, focus on reducing costs and increasing efficiency, and establish a professional, efficient and strong operation and management headquarters. Fourth, we will keep on pioneering and enterprising, coordinate development, and create a supporting force for high-quality development. By coordinating the construction of a strong port, key projects and safe production, promoting the high-quality development of the Group, building itself into a “world’s leading comprehensive port service provider with high quality”, the Group is committed to creating greater value for itself and bringing more returns to the shareholders. APPRECIATION In 2023, facing the severe external situation and a series of risks and challenges, the Group adhered to strategic leadership, focused on “endogenous growth” and “innovation and upgrade”, significantly improved its lean operation capability, accelerated the pace of its global deployment, and successfully implemented various key tasks, resulting in a stable performance with steady growth. All of these could not be accomplished without the dedication of all staff of the Group and the support from our shareholders and investors, business partners and those in the society who have taken to heart the Group’s interest. For this, I would like to extend my most sincere appreciation and deepest gratitude. Chairman Feng Boming Hong Kong, 28 March, 2024