Annual Report 2023

Management Discussion and Analysis CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED 16 In respect of operation management, the Group leveraged on SMP to build a one-stop integrated management platform to support the business analysis of container, bulk cargo, logistics parks, comprehensive development and smart technology. With digital technology as the key force, the Group made use of the smart tools to drive the reform of its operation and management methods, models and concepts. At present, the Group has basically realized the collection and management of full life-cycle information of assets, as well as the standardization and online operation of major business processes. In addition, the Group also optimized the engineering management system and strengthened the life-cycle supervision of major projects. The Group kept on optimizing profitability and continuously initiated measures to improve quality and efficiency. The business financial analysis framework was improved and reshaped, while the growth of costs and expenses was strictly controlled. By deepening the cost control to form a normalized mechanism for cost reduction and efficiency enhancement, the Group has achieved phased results in its lean operation. As for marketing and commerce, the Group is committed to promoting synergy, optimizing products, attaching importance to commercial activities and upgrading the systems. The innovation and upgrading of the digital service platform were completed. With the concept of unified architecture and unified structure, the Group completed the new upgrade of the “CM ePort” comprehensive service platform, and launched it in the Group’s controlled terminals in Mainland China to promote the online, paperless and self- service of port-related services, so as to meet the business demand of customers on the mobile and computer ends. As for the ESG construction, under the guidance of the ESG strategic planning, the Group further improved the comprehensive ESG management system, compiled the ESG work manual, and carried out the ESG upgrade for the overseas projects. Focusing on the main line of port business and industry priorities, the Group fully capitalized on its resources advantages and continuously expanded the characteristic ESG practices. In the meantime, the content of ESG information disclosure and the disclosure channels were improved. The Group was honored with rating upgrade and ESG awards by various ESG rating agencies in 2023. BUSINESS REVIEW Ports operation In 2023, the Group’s ports handled a total container throughput of 137.48 million TEUs, up by 0.7% year-on- year. Among which, the Group’s ports in Mainland China, Hong Kong and Taiwan contributed an aggregate container throughput of 103.41 million TEUs, representing an increase of 0.7% year-on-year, which was mainly benefitted from the increase in container volume in West Shenzhen Port Zone, the Yangtze River Delta region and the Bohai Rim region in Mainland China. A total container throughput handled by the Group’s overseas ports grew by 0.6% year-on-year to 34.06 million TEUs, which was mainly benefitted from the growth of container throughput of TCP Participações S.A. (“ TCP ”) in Brazil, Port de Djibouti S.A. (“ PDSA ”) in Djibouti and Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret Anonim Ş irketi (“ Kumport ”) in Turkey. Bulk cargo volume handled by the Group’s ports increased by 2.0% year-on- year to 557 million tonnes, among which the Group’s ports in Mainland China handled a total bulk cargo volume of 551 million tonnes, representing an increase of 1.8% year-on- year.