China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

CHINA MERCHANTS PORT GROUP CO., LTD.

THE REPORT FOR THE FIRST QUARTER OF 2019

Date of Disclosure: 30 April 2019

China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Part I Important Notes

The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors, supervisors and senior management of China Merchants Port Group Co., Ltd. (hereinafter referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report and its summary, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions therein. All the Company’s directors have attended the Board meeting for the review of this Report and its summary. Bai Jingtao, the Company’s legal representative, Wen Ling, the Company’s Chief Financial Officer, and Sun Ligan, the person-in-charge of the accounting organ hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete. This Report and its summary have been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese versions shall prevail.

1 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Definitions

Term Definition

The “Company”, “CMPort” or “we” China Merchants Port Group Co., Ltd.

Sinotrans Sinotrans Guangdong Co., Ltd.

Zhanjiang Port Port (Group) Co., Ltd.

Zhanjiang Infrastructure Investment Zhanjiang Infrastructure Construction Investment Group Co., Ltd.

CMG China Merchants Group Co., Limited

CWH (H.K.) Wharf Holdings () Limited

CMID China Merchants Investment Development Company Limited

SZPL Urban Planning and Land Resources Committee The Authority of Shenzhen-Hongkong Modern Service SZQH Industry Cooperation Zone of Shenzhen Qianhai Investment Holdings Shenzhen Qianhai Development Investment Holdings Co., Ltd.

CM Qianhai Industrial Shenzhen China Merchants Qianhai Industrial Development Co., Ltd.

CM Chidi Shenzhen China Merchants Qianhai Chidi Industrial Co., Ltd. CMPort Holdings China Merchants Port Holdings Company Limited (00144.HK) Ansujie Terminal Services (Shenzhen) Co., Ltd., a wholly-owned Ansujie subsidiary of CMPort Holdings Antongjie Terminal Services (Shenzhen) Co., Ltd., a wholly-owned Antongjie subsidiary of CMPort Holdings Qianhai Hongyu Shenzhen Qianhai Hongyu Industrial Investment Co., Ltd. Asset Management Shenzhen China Merchants Shekou Asset Management Co., Ltd. CMI China Merchants Investment Limited Lac Assal Lac Assal Investment Holding Company Limited Cheer Signal Cheer Signal Investment Limited Khor Ambado Fzco Khor Ambado Free Trade Zone Co., Ltd. CMHD China Merchants Holdings (Djibouti) Fze The cninfo website www.cninfo.com.cn Expressed in the Chinese currency of RMB Expressed in tens of thousands of Renminbi RMB’0,000 Expressed in hundreds of millions of Renminbi RMB’00,000,000 (unless otherwise specified)

2 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Part II Key Corporate Information

I Key Accounting Data and Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below. √ Yes □ No Reasons for the retrospective adjustments or restatements: 1. Changes to accounting policies. For details, please refer to “XII YoY Changes to Accounting Policies, Estimates and Methods” under “Part III Significant Events” in this report; 2. A business combination under common control. The Company completed the issuance of shares to the trading counterpart CMID on 25 December 2018 and took control of CMPort Holdings in form and in nature. In accordance with the Accounting Standards for Business Enterprises No. 33-Consolidated Financial Statements, the Company starts to include CMPort Holdings into the consolidated financial statements since December 2018. Therefore, the Company adjusted the comparative financial data in the table below as required by the rules governing business combinations under common control.

Q1 2018 Change (%) Q1 2019 Original Restated Restated

Operating revenue (RMB) 2,702,894,522.99 615,757,667.14 2,172,750,441.44 24.40% Net profit attributable to the listed 814,944,249.12 146,662,116.72 381,903,088.64 113.39% company’s shareholders (RMB) Net profit attributable to the listed company’s shareholders before 262,409,245.18 147,400,980.09 129,600,674.09 102.48% exceptional items (RMB) Net cash generated from/used in 1,148,963,121.64 105,464,496.51 488,161,711.35 135.37% operating activities (RMB) Basic earnings per share (RMB/share) 0.454 0.227 0.213 113.15%

Diluted earnings per share (RMB/share) 0.454 0.227 0.213 113.15%

Weighted average return on equity (%) 2.62% 2.91% 1.33% 1.29%

31 December 2018 Change (%) 31 March 2019 Original Restated Restated

Total assets (RMB) 145,187,177,118.55 8,147,257,790.54 128,018,084,415.68 13.41% Equity attributable to the listed 31,440,401,822.20 4,313,532,059.53 30,760,475,412.93 2.21% company’s shareholders (RMB)

Exceptional gains and losses: √ Applicable □ Not applicable Unit: RMB

Item Q1 2019 Note Gain or loss on disposal of non-current assets (inclusive of 779,531.18 impairment allowance write-offs) Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course 21,086,769.01 of business at fixed quotas or amounts as per the government’s uniform standards)

3 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Capital occupation charges on non-financial enterprises that are 12,811,302.12 recorded into current profit or loss The Company took control of Gains due to that the investment costs for the Company to obtain Zhanjiang Port in the current period, subsidiaries, associates and joint ventures are lower than the and return on investment was 723,737,741.50 enjoyable fair value of the identifiable net assets of the investees recognized and measured on the when making the investments long-term equity investment in Zhanjiang Port formerly at fair value Gain or loss on fair-value changes in trading financial assets and liabilities, as well as derivative financial assets and liabilities & Gain or loss on fair-value changes in income from disposal of trading financial assets and liabilities, 803,969,789.43 financial assets and liabilities at fair derivative financial assets and liabilities, as well as investments in value through profit or loss other debt obligations (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) Non-operating income and expense other than the above 2,586,527.25

Less: Income tax effects 169,501,960.70

Minority interests effects (after tax) 842,934,695.85

Total 552,535,003.94 --

Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items: □ Applicable √ Not applicable

II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019

1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders

Unit: share Number of preferred Number of ordinary shareholders 34,074 (including 23,247 A-shareholders and shareholders with resumed 0 at the period-end 10,827 B-shareholders) voting rights at the period-end (if any) Top 10 shareholders Shares in Nature of Shareholding Restricted Name of shareholder Total shares held pledge or shareholder percentage shares held frozen China Merchants Investment Development Foreign legal 64.05% 1,148,648,648 1,148,648,648 0 Company Limited person China Merchants Gangtong Development Domestic 20.68% 370,878,000 0 0 (Shenzhen) Co., Ltd. legal person Foreign legal Broadford Global Limited 3.08% 55,314,208 0 0 person CMBLSA RE FTIF TEMPLETON ASIAN GRW Foreign legal 2.16% 38,708,339 0 Unknown FD GTI 5496 person Fund, wealth management National Social Security Fund 101 Portfolio 0.18% 3,304,101 0 Unknown instrument, etc. Foreign legal NORGES BANK 0.16% 2,802,863 0 Unknown person

4 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

State-owned China Merchants Securities (HK) Co., Ltd. 0.14% 2,590,937 0 Unknown legal person Domestic Mai Shuqing 0.13% 2,350,247 0 Unknown natural person Foreign legal Vanguard Emerging Markets Stock Index Fund 0.10% 1,763,746 0 Unknown person Foreign legal Canada Post Corporation Registered Pension Plan 0.07% 1,292,406 0 Unknown person Top 10 unrestricted shareholders

Shares by type Name of shareholder Unrestricted shares held Type Shares China Merchants Gangtong Development RMB-denominated 370,878,000 370,878,000 (Shenzhen) Co., Ltd. ordinary stock Domestically listed Broadford Global Limited 55,314,208 55,314,208 foreign stock CMBLSA RE FTIF TEMPLETON ASIAN GRW Domestically listed 38,708,339 38,708,339 FD GTI 5496 foreign stock RMB-denominated National Social Security Fund 101 Portfolio 3,304,101 3,304,101 ordinary stock Domestically listed Norges Bank 2,802,863 2,802,863 foreign stock Domestically listed China Merchants Securities (HK) Co., Ltd. 2,590,937 2,590,937 foreign stock RMB-denominated Mai Shuqing 2,350,247 2,350,247 ordinary stock Domestically listed Vanguard Emerging Markets Stock Index Fund 1,763,746 1,763,746 foreign stock Domestically listed Canada Post Corporation Registered Pension Plan 1,292,406 1,292,406 foreign stock RMB-denominated Chen Zehong 1,240,000 1,240,000 ordinary stock China Merchants Gangtong Development (Shenzhen) Co., Ltd. is a wholly-owned subsidiary of Broadford Global Limited, and Broadford Global Related or acting-in-concert parties among the Limited is the controlling shareholder of China Merchants Investment shareholders above Development Company Limited. The Company does not know whether the other unrestricted shareholders are related parties or not. Top 10 ordinary shareholders involved in securities N/A margin trading (if any)

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory repo during the Reporting Period. □ Yea √ No

2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them

□ Applicable √ Not applicable

5 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Part III Significant Events

I Changes in Major Accounting Data and Financial Indicators for the Reporting Period，As Well As Reasons for Such Changes

√ Applicable □ Not applicable Unit: RMB

Item 31 March 2019 1 January 2019 Change (%) Explanation of Change

The inclusion of Zhanjiang Port as a new Notes receivable 182,523,102.29 11,608,669.43 1472.30% entity into the consolidated financial statements of the current period The inclusion of Zhanjiang Port as a new Accounts receivable 1,640,858,015.96 1,109,230,503.08 47.93% entity into the consolidated financial statements of the current period Increase in the prepayments by subsidiaries Prepayments 201,216,459.84 81,845,182.30 145.85% for machinery equipment, and the effect of the accounting rules governing leases The inclusion of Zhanjiang Port as a new Inventories 161,659,512.30 108,567,270.02 48.90% entity into the consolidated financial statements of the current period Other non-current Changes in the fair value of investments in 2,939,477,551.93 2,087,872,081.94 40.79% financial assets Port and Port Right-of-use assets recognized as per the new Right-of-use assets 6,505,658,114.64 6,549,564,031.55 -0.67% accounting standards governing leases The inclusion of Zhanjiang Port as a new entity into the consolidated financial statements of the current period, normal Fixed assets 26,540,880,013.69 17,477,797,429.30 51.85% depreciation allowances, exchange rate fluctuations and the effect of the new accounting standards governing leases The inclusion of Zhanjiang Port as a new Deferred income tax 120,520,020.83 66,708,157.19 80.67% entity into the consolidated financial assets statements of the current period The inclusion of Zhanjiang Port as a new Other non-current assets 2,119,736,766.29 395,191,485.98 436.38% entity into the consolidated financial statements of the current period The inclusion of Zhanjiang Port as a new entity into the consolidated financial Short-term borrowings 7,669,361,618.42 3,425,291,312.62 123.90% statements of the current period, and increase in short-term bank loans for investment purposes The inclusion of Zhanjiang Port as a new Long-term payables 2,027,482,133.04 1,252,860,200.23 61.83% entity into the consolidated financial statements of the current period Lease liabilities recognized according to the Lease liabilities 989,868,412.75 1,020,239,824.73 -2.98% new accounting standards governing leases

Item Q1 2019 Q1 2018 Change (%) Explanation of Change

Increase in interest expense due to an increase Financial expense 431,930,403.64 275,761,221.02 56.63% in the average balance of interest-bearing liabilities

6 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

The Company took control of Zhanjiang Port in the current period, and return on investment investment income 1,491,659,164.10 684,366,403.71 117.96% was recognized and measured on the long-term equity investment in Zhanjiang Port formerly at fair value

Gain on changes in fair 803,456,059.74 137,919,530.28 482.55% Increase in the net gain on changes in the fair value value of trading financial assets Increase in deferred income tax liabilities due Income tax expense 428,680,888.19 196,407,949.26 118.26% to an increase in the gain on changes in the fair value of equity interests held

Item Q1 2019 Q1 2018 Change (%) Explanation of Change

The inclusion of Zhanjiang Port as a new entity into the consolidated financial Cash received from sale statements of the current period, and the of commodities and 2,647,510,819.37 1,819,094,588.96 45.54% inclusion of TCP as a new entity in the rendering of services consolidation financial statements in February 2018

Cash received from other 437,792,411.01 163,911,046.96 167.09% A government subsidy for the western channel operating activities in the current year The inclusion of Zhanjiang Port as a new entity into the consolidated financial statements of the current period, and the Taxes paid 225,198,426.64 126,141,464.22 78.53% inclusion of TCP as a new entity in the consolidation financial statements in February 2018 Net proceeds from the The security deposit received last year for the disposal of subsidiaries - 1,411,633,655.68 -100.00% transfer of equity interests in China Merchants and other business units Gangtong Development (Shenzhen) Co., Ltd. The balance of monetary capital of Zhanjiang Cash received from other Port, which is included as a new entity into the 1,315,937,327.03 - - investing activities consolidated financial statements of the current period The inclusion of Zhanjiang Port as a new Cash paid for the entity into the consolidated financial acquisition of fixed statements of the current period, and the assets, intangible assets 650,139,928.72 481,958,576.95 34.90% inclusion of TCP as a new entity in the and other long-term consolidation financial statements in February assets 2018

Cash paid for investing 415,845,100.00 63,458,839.54 555.30% The acquisition of a 3.4223% interest in activities Zhanjiang Port in the current period Net payments for the acquisition of - 4,844,558,474.75 -100.00% The acquisition of TCP last year subsidiaries and other business units

Cash paid for other 255,659,104.33 25,463,391.23 904.03% The purchase of structured deposits not repaid investing activities on demand in the current period Equity funds received by Zhanjiang Port from Cash received from 460,518,459.96 15,950,000.00 2787.26% its non-controlling shareholders in the current capital contributions period

Increase in cash 5,720,896,211.18 9,562,436,640.00 -40.17% Decrease in borrowings obtained in the borrowings obtained current period Cash paid for interest Increase in interest expense due to an increase expenses and distribution 575,131,285.06 231,250,932.71 148.70% in the average balance of interest-bearing od dividends or profit liabilities The inclusion of Zhanjiang Port as a new Cash paid in other 114,109,500.00 31,028,691.80 267.75% entity into the consolidated financial financing activities statements of the current period

7 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

II Progress, Influence and Solutions with regard to Significant Events

√ Applicable □ Not applicable

Index to the related Summary of the significant event Disclosure date announcement

The acquisition of assets and related-party transactions On 2 January 2019, the Company and Sinotrans Guangdong signed the Share Transfer Agreement of Zhanjiang Port (Group) Co., Ltd. in Shenzhen. By the signing of the Refer to Agreement, the Company was granted 201,034,548 ordinary shares of Zhanjiang Port http://www.cninfo.com held by Sinotrans Guangdong, which accounted for 5% of the total shares issued by .cn for details of Zhanjiang Port on the date of signing the Agreement, with a consideration valued at relevant RMB375,334,390. On 2 January 2019, the Proposal on the Signing of Share Transfer 3 January 2019 announcements on Agreement of Zhanjiang Port (Group) Co., Ltd. between the Company and Sinotrans 5 January 2019 resolutions Guangdong was deliberated and approved by the 1st Extraordinary Meeting of the 9th (announcement No. Board of Directors of the Company in 2019. 2019-002 and As of 4 January 2019, the share purchase has completed the registration changing announcement No. procedures and changing filing procedures for foreign-invested enterprises. And the 5% 2019-003) of shares of Zhanjiang Port held by Sinotrans Guangdong has registered under the Company.

Foreign investment of wholly-owned subsidiaries and related-party transactions On 8 January 2019, the wholly-owned subsidiary of the Company CWH (H.K.) signed the Agreement on Capital Increase of Zhanjiang Port (Group) Co., Ltd. with Zhanjiang Infrastructure Investment and Zhanjiang Port (hereinafter referred to as the “Capital Increase Agreement”). According to the provisions of the Capital Increase Agreement, Zhanjiang Port intends to issue 1,853,518,190 additional common shares at the price of RMB1.867 per share or equivalent foreign currency to increase its registered capital to Refer to RMB5,874,209,145. CWH (H.K.) proposed to subscribe for 1,606,855,919 common http://www.cninfo.com shares, accounting for 27.3544% of the shares issued by Zhanjiang Port on the date of .cn for details of issuance of the subscribed shares, with a total amount up to RMB3,000,000,000.77 or relevant equivalent foreign currency (hereinafter referred to as "the transaction"); Zhanjiang announcements on 9 January 2019 Infrastructure Investment proposed to subscribe 246,662,271 common shares, resolutions 25 January 2019 accounting for 4.1991% of the shares issued by Zhanjiang Port on the date of issuance (announcement No. 12 February 2019 of the subscribed shares, with a total amount up to RMB460,518,459.96. 2019-005, The Proposal on Capital Increase of Wholly-owned Subsidiary to Zhanjiang Port announcement No. (Group) Co., Ltd. was deliberated and approved by the 2nd Extraordinary Meeting of 2019-013 and the 9th Board of Directors held by the Company on 8 January 2019 and the 1st announcement No. Extraordinary General Meeting of 2019 held on 24 January 2019 respectively. 2019-018) On 2 February 2019, CWH (H.K.) received the Decision on the Non-implementation of Further Investigation on Anti-Monopoly Review on Enterprise Centralization (Decision No. [2019]56) issued by the State Administration of Market Regulation. The State Administration of Market Regulation, after investigation, decided not to carry out further investigation on this transaction, and CWH (H.K.) might implement concentration of undertakings from the date of issuance of the decision. As of 3

8 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

February 2019, the registration and filing procedures of the transaction for business change was finished, and the capital increase to Zhanjiang Port by the Company's wholly-owned subsidiary CWH (H.K.) was completed.

Land integration and reorganization in Qianhai by wholly-owned subsidiary of majority-owned subsidiary and related-party transactions In order to implement the Comprehensive Planning for Qianhai Shenzhen Hongkong Modern Service Industry Cooperation Zone of Shenzhen and the Comprehensive Planning for Shekou in Qianhai and the surrounding Nanshan District in China (Guangdong) Pilot Free Trade Zone, which are made by the State Council and Shenzhen Municipal Government, to promote the development of Qianhai-Shenzhen-Hong Kong Cooperation Zone and Qianhai Shekou Free Trade Zone, the Company signed the Agreement on Land Integration and Reorganization with SZPL, SZQH and CMG, and CMG, Qianhai Investment Holdings, and CM Qianhai Industrial and other relevant parties signed the Joint Venture Cooperation Agreement, to clarify the implementation plans for land integration and reorganization and the joint venture cooperation in Qianhai. To realize the implementation plans of land integration and reorganization and the joint venture cooperation in Qianhai, SZQH recovered all the land use rights under the original plan of 19 land-holding companies within the scope and in accordance with the Refer to Agreement on Land Integration and Reorganization, and evaluated the land http://www.cninfo.com compensation amount of about RMB43.21 billion by calculation (the base date of .cn for details of evaluation is 1 January 2015); and then SZQH replaced the land-use rights under the relevant new plan whose value equals the compensation value of the land mentioned above with 12 January 2019 announcements on CM Chidi (with 14% of shares held by Ansujie and Antongjie) (the base date of 26 February 2019 resolutions evaluation is 1 January 2015, hereinafter referred to as the “land for replacement with (announcement No. China Merchants”); SZQH invested part of the land invested by Qianhai into Qianhai 2019-008 and Investment Holdings to become one of its shareholders, and then the land use right were announcement No. invested into Qianhai Hongyu by Qianhai Investment Holdings, who became a 2019-020) shareholder of Qianhai Hongyu; CM Qianhai Industrial and Qianhai Investment Holdings increased the capital of the joint venture company with the 100% equity of CM Chidi and Qianhai Hongyu respectively, and the party with insufficient equity made up for the cash consideration to ensure that CM Qianhai Industrial and Qianhai Investment Holdings holds 50% equity of the joint venture company respectively after the capital increase. In order to harmonize the economic interest relationships between CM Chidi and the 19 land-holding companies due to the acquisition of land for investment replacement, CM Chidi signed the Agreement on Confirmation of Compensation for Creditor’s Rights with the 19 land-holding companies to determine the amount and proportion of land compensation for creditor’s rights of the 19 land-holding companies. Ansujie and Antongjie will receive about RMB5.693 billion from CM Chidi as compensation for the land use rights of about 471,800 square meters, accounting for 13.1758% of the total amount of land compensation for creditor’s rights. In order to keep the proportion of land compensation for creditor's rights in line with the proportion of 14% equity held indirectly by CMPort Holdings, Antongjie, Shekou Asset Management and CM Chidi

9 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019 signed the Agreement on Transfer of Creditor’s Rights, to stipulate that Antongjie will purchase 0.8242% of land compensation for creditor’s rights from Shekou Asset Management, with an amount of creditor's rights up to about RMB356 million. In addition, 55% of the total area of T102-0166 and T102-0167 plots owned by Ansujie and Antongjie and the corresponding shorelines (about 5313,000 square meters of land area) are replaced to Phase II of Dachanwan Port Area according to the principle of equal area (including corresponding shorelines). Ansujie and Antongjie no longer enjoy the compensation of land value under the new and original planning conditions for the above-mentioned land area. The specific replacement scheme shall be determined by SZPL, CMG, Antongjie and Ansujie after further consultation with relevant departments. In order to pay off the above-mentioned land compensation debts, CM Qianhai Industrial signed the Agreement on Capital Increase to CM Qianhai Industrial with 19 land-holding companies, to stipulate that the former 19 land-holding companies will increase their investment to CM Qianhai Industrial by about RMB43.210 billion in cash, of which about RMB6.049 billion would be raised by Ansujie and Antongjie. With these increased capital funds, CM Qianhai Industrial will increase its investment in cash to its wholly-owned subsidiary CM Chidi, who will pay off the land compensation debts to the 19 land-holding companies with such increased capital funds. In addition, in order to raise funds for cooperative cash consideration, the 19 land-holding companies will increase their investment to CM Qianhai Industrial by no more than RMB15 billion with the same proportion of cash, of which, the incremental funds of Ansujie and Antongjie will not exceed RMB2.1 billion. CM Qianhai Industrial will increase investment to its wholly-owned subsidiary CM Chidi with such increased capital funds to pay for the cash consideration for the joint venture (including but not limited to advance payment and sincerity deposit, etc.), or pay the joint venture cash consideration directly to the joint venture company (including but not limited to advance payment and sincerity deposit, etc.). The cash consideration for the joint venture shall be determined by the evaluation agency entrusted by CM Qianhai Industrial and Qianhai Investment Holdings, who will evaluate the 100% equity of CM Chidi and Qianhai Hongyu in accordance with the Joint Venture Cooperation Agreement. As the specific amount has not been determined yet, investors should notice to the investment risk. The Proposal on Land Integration and Reorganization in Qianhai by Wholly-owned Subsidiary of Majority-owned Subsidiary was deliberated and approved by the 3rd Extraordinary Meeting of the 9th Board of Directors held by the Company on 11 January 2019 and the 2nd Extraordinary General Meeting of 2019 held on 25 February 2019 respectively.

Related-party transactions of Majority-owned subsidiaries Refer to On 22 January 2019, the Company's majority-owned subsidiaries, CMPort Holdings, http://www.cninfo.com CMI, Cheer Signal Investment Limited and Lac Assal signed the Supplementary .cn for details of Agreement II on Shareholder Agreement of Lac Assal (hereinafter referred to as the 23 January 2019 relevant announcement “Capital Increase Agreement”) to stipulate that the ports of CMPort Holdings, CMI and on resolutions Cheer Signal Investment Limited shall increase the capital of Lac Assal by means of (announcement No. cash contribution according to the proportion of their shareholder’s equity. The total 2019-012)

10 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019 amount of capital to increase is USD30,000,000, including USD12,000,000 to be increased by CMPort Holdings, USD12,000,000 to be increased by CMI and USD6,000,000 to be increased by Cheer Signal Investment Limited (hereinafter referred to as the “capital increase”). After the capital increase, the registered capital of Lac Assal will increase to USD60,060,000. The proportion of shares of CMPort Holdings, CMI and Cheer Signal Investment Limited will remained unchanged as 40%, 40% and 20% respectively. The Proposal on Joint Capital Increase of Majority-owned Subsidiaries and Related Parties to Lake Asaler was deliberated and approved by the 4th Extraordinary Meeting of the 9th Board of Directors held by the Company on 22 January 2019.

Related-party guarantee provided by majority-owned subsidiary for its shareholding subsidiary Khor Ambado Fzco, a shareholding subsidiary of the Company’s majority-owned subsidiary CMPort Holdings, is planning to apply for a loan of USD240 million from Refer to the National Development Bank for the construction project in Djibouti Free Trade http://www.cninfo.com Zone with a term of 13 years. CMPort Holdings intends to provide joint and several .cn for details of liability guarantee for the loan according to the proportion of its shareholding in KHOR relevant AMBADO FZCO. The guaranteed amount includes the principal of the loan (USD240 30 March 2019 announcements on million*12%=USD228.8 million) and the corresponding interest, expenses (if any), 16 April 2019 resolutions penalty (if any) and so on. The term of guarantee shall be from the effective date of the (announcement No. guaranty contract to the expiration date of the performance period of the debt under the 2019-028 and main contract. announcement No. The Proposal on Related-party Guarantee Provided by Majority-owned Subsidiary for 2019-038) Its Shareholding Subsidiary was deliberated and approved by the 5th Meeting of the 9th Board of Directors held by the Company on 28 March 2019 and the 3rd Extraordinary General Meeting of 2019 held on 15 April 2019 respectively.

The Signature of land lease agreement by wholly-owned subsidiary of majority-owned subsidiary and related-party transactions CMHD, a wholly-owned subsidiary of the Company’s majority-owned subsidiary CMPort Holdings, and Khor Ambado Fzco, a shareholding subsidiary of CMPort Refer to Holdings, signed the Land Lease Agreement (hereinafter referred to as the “Land http://www.cninfo.com Leasing Agreement”) on 28 March 2019 to stipulate that CMHD shall lease the land in .cn for details of B06/B07 plot owned by Khor Ambado Fzco in Djibouti Free Trade Zone, which covers 30 March 2019 relevant announcement an area of 137,801.63 square meters, with a total rent of USD27,756,004.31 for a lease on resolutions period from the date of entry into force of the Land Lease Agreement to 14 August (announcement No. 2116. 2019-029) The Proposal on the Signature of Land Lease Agreement by Wholly-owned Subsidiary of Majority-owned Subsidiary and Related-party Transactions was deliberated and approved by the 5th Meeting of the 9th Board of Directors held by the Company on 28 March 2019.

Progress of any share repurchase: □ Applicable √ Not applicable Progress of any reduction of the repurchased shares through centralized bidding:

11 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

□ Applicable √ Not applicable

III Commitments that the Company’s Actual Controller, Shareholders, Related Parties, Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the Reporting Period

□ Applicable √ Not applicable

IV Operating Performance Forecast for January-June 2019

Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of January-June 2019, as well as explanation of why: □ Applicable √ Not applicable

V Securities Investments

√ Applicable □ Not applicable Unit: RMB

Sol Gain Cumulati Purch d in /loss Accoun Gain/loss on ve fair ased Capi Variety Code Nam the in ting fair value value in the Accou tal of of e of Initial Beginning Rep the Ending carrying measur changes in the changes Repor nting reso securiti securiti secur investment cost carrying value orti Repo value ement Reporting recorded ting item urce es es ities ng rting model Period into Perio s Peri Perio equity d od d Trading Ning Fair Self- financi Stock 601018 bo 592,183,095.14 value 1,361,414,474.58 441,455,106.93 0 0 0 0 1,773,099,689.84 own al Port method ed assets Trading Qing Fair Self- financi Stock 06198 dao 124,405,138.80 value 190,401,046.01 8,511,687.22 0 0 0 0 194,891,593.44 own al Port method ed assets Trading Qing Fair Self- financi Stock 601298 dao 331,404,250.30 value 413,280,000.00 437,920,000.00 0 0 0 0 851,200,000.00 own al Port method ed assets Other Jiang invest su Fair ments Self- Stock 600377 Expr 1,120,000.00 value 9,800,000.00 0 75,000.00 0 0 0 9,900,000.00 in own essw method equity ed ay instrum ents Other invest Petro Fair ments Self- che Stock 400032 3,500,000.00 value 382,200.00 0 0 0 0 0 382,200.00 in own mica method equity ed l A1 instrum ents Other invest Guan Fair ments Self- Stock 400009 g Jian 27,500.00 value 17,000.00 0 0 0 0 0 17,000.00 in own 1 method equity ed instrum ents

Total 1,052,639,984.24 -- 1,975,294,720.59 887,886,794.15 75,000.00 0 0 0 2,829,490,483.28 -- --

12 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

VI Investments in Derivative Financial Instruments

√ Applicable □ Not applicable Unit: RMB’0,000 Proportion of ending Actual Purchase Impairm Ending investment Relationsh Related Initial Beginning Sold in the gain/loss Type of Starting Ending d in the ent investme amount in Operator ip with the transact investment investmen Reporting in the derivative date date Reporting provision nt the Company ion amount t amount Period Reporting Period (if any) amount Company’s Period ending net assets Forward 28 Financing Non-relate foreign 9 March No 4,961.18 February 4,961.18 0 4,961.18 0 0 0.00% -332.39 institution d party exchange 2018 2019 purchasing 29 Financing Non-relate Currency 26 March No 20,177.33 March 20,177.33 0 20,177.33 0 0 0.00% -1,496.24 institution d party swap 2019 2018 Forward Financing Non-relate foreign 4 April 26 March No 173.63 173.63 0 173.63 0 0 0.00% institution d party exchange 2018 2019 purchasing Forward Financing Non-relate foreign 15 June 21 March No 42.88 42.88 0 42.88 0 0 0.00% institution d party exchange 2018 2019 purchasing Forward Financing Non-relate foreign 15 June 8 May No 4,885.98 4,885.98 0 0 4,885.98 0.06% -102.24 institution d party exchange 2018 2019 purchasing

Total 30,241.00 -- -- 30,241.00 0 25,355.02 4,885.98 0.06% -1,930.87

Source of money used for investment All from the Company’s own funds

Legal matters involved (if applicable) N/A

Analysis of risks and control measures In order to reduce the risks resulted from changes in exchange rate of foreign currency loans, the Company associated with derivative investments held locked the principal and interests exchange rate of US$46.65 million foreign currency loans. Within the time in Reporting Period (including but not limit and scope of foreign currency loans, risks of changes in exchange rate can be reduced by locking the limited to market risk, liquidity risk, credit forward exchange rate. risk, operational risk, legal risk, etc.) Changes in market prices or fair value of derivative investments in Reporting Period (fair value analysis should include Gain and loss on forward financial contracts was RMB-19.3087 million in the Reporting Period. measurement method and related assumptions and parameters) Significant changes in accounting policies and specific accounting principles adopted N/A for derivative investments in Reporting Period compared to last reporting period Opinion of independent directors on N/A derivative investments and risk control

13 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

VII Communications with the Investment Community such as Researches, Inquiries and Interviews during the Reporting Period

√ Applicable □ Not applicable

Type of Date Way of communication Index to main information communicated communication party Main inquiry: basic business condition, investments and By phone and written inquiry financial condition of the Company; Materials provided: brochure of the Company; January-March 2019 (through the EasyIR platform of Individual Index: SZSE EasyIR SZSE) (http://irm.cninfo.com.cn/ssessgs/S001872/index.html)

VIII Irregularities in the Provision of Guarantees

□ Applicable √ Not applicable

IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties for Non-Operating Purposes

□ Applicable √ Not applicable

X Progress Made on Internal Control

In the first quarter of 2019, according to the results of the work flow combing of internal control for 2018, the sample test of drafts, internal control defect sheet and the rectification report on internal control, the Company produced the 2018 annual internal control self-evaluation report, which was disclosed after review and approval at the 5th Meeting of the 9th Board of Directors and the 5th Meeting of the 9th Supervisory Committee.

The Company engaged Deloitte Touche Tohmatsu Certified Public Accountants LLP to audit the effectiveness of its 2018 financial reporting internal control. A standard auditor’s report with unqualified opinion was issued by DDT and later disclosed by the Company.

Currently, the Company has conducted its internal control activities in 2019, including 1) renewed the list of the internal control task group members; 2) formulated the work plan and schedule for internal control in 2019; 3) determined the working range of the internal control (China Merchants Port Group Co., Ltd. and its 24 subordinate companies have been brought into the scope of evaluation of internal control system) and self-assessment procedures of internal control in 2019; 4) conducted self-assessment of internal control; 5) finished the updating of basic data of risk control.

The Company has completed the internal control work in 2018 according to the schedule in the internal control work plan for 2018, as well as the preparations for its internal control activities in 2019 according to the schedule in the internal control work plan for 2019, with no deviation or delay.

XI Deposits in and Loans Provided by a Finance Company

The Proposal on Signing Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd. was reviewed and approved on the Second Meeting of the 9th Board of Directors held by the Company on 23 August 2017, in which, the Company was agreed to signed

14 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019 the Financial Service Agreement with Sinotrans & CSC Finance Co., Ltd. (renamed China Merchants Group Finance Co., Ltd. from August 2017) with the period of three years. The Proposal on Adjusting Limit of Deposits and Loans and Signing Supplementary Agreement to Financial Service Agreement with China Merchants Group Finance Co., Ltd and the Related-party Transactions was reviewed and approved on the 5th Meeting of the 9th Board of Directors held by the Company on 28 March 2019, in which, the Company was agreed to signed Supplementary Agreement to Financial Service Agreement with China Merchants Group Finance Co., Ltd. At the end of the Reporting Period, deposits in and loans provided by China Merchants Group Finance Co., Ltd. were as follows:

Unit: RMB’0,000

Item Beginning balance Increase Decrease Ending balance

I. Deposits in China Merchants Group Finance Co., Ltd. 3,838.72 6,072.36 6,782.81 3,128.28 II. Loans provided by China Merchants Group Finance Co 77,500.00 31,500.00 5,500.00 103,500.00 Ltd.

XII Explain Change of the Accounting Policy, Accounting Estimate and Measurement Methods as Compared with the Financial Reporting of Last Year

The Accounting Standards for Business Enterprises No. 21 – Lease (hereinafter referred to as “New lease standard”) revised and issued by Ministry of Finance on 7 December 2018 required that enterprises listed both domestically and overseas and enterprises listed overseas who prepare the financial statements by International Financial Reporting Standards or Accounting Standards for Business Enterprises shall implement it form 1 January 2019, and other enterprises implementing the Accounting Standards for Business Enterprises shall implement it from 1 January 2021. According to the requirements of Ministry of Finance, enterprises whose subsidiaries are listed overseas and prepare the financial statements by International Financial Reporting Standards or Accounting Standards for Business Enterprises can implement the new lease standard in advance. The Company, in accordance with the requirements of Ministry of Finance, implemented the new lease standard from 1 January 2019. For details, see Announcement on Changes in Accounting Policies (Announcement No.: 2019-031) published by the Company on http://www.cninfo.com.cn dated 30 March 2019. According to the regulations of the new standards, the Company did not adjust the information during comparative period, executed the accumulative influence number of the standard for the first time, and adjusted the beginning retained earnings and the amount of other related items in financial statements. The Group has disclosed the balance sheet with new standards being implemented for the first day of 1 January 2019 in financial statements of this Report.

15 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Part IV Financial Statements

I Financial Statements 1. Consolidated Balance Sheet

Unit: RMB

Item 31 March 2019 31 December 2018 Current assets: Cash and bank balances 7,102,589,101.27 7,070,308,704.75 Trading financial assets 1,903,946.25 - Notes and accounts receivable 1,823,381,118.25 1,120,839,172.51 Including: Notes receivable 182,523,102.29 11,608,669.43 Accounts receivable 1,640,858,015.96 1,109,230,503.08 Prepayments 201,216,459.84 124,404,862.87 Other receivables 964,603,462.54 799,559,226.45 Including: Interest receivable 48,103,769.74 33,041,147.73 Dividends receivable 256,425,082.10 259,804,145.16 Inventories 161,659,512.30 108,567,270.02 Assets classified as held for sale 115,356,162.94 115,356,162.94 Other current assets 1,259,804,522.04 1,195,421,189.12 Total current assets 11,630,514,285.43 10,534,456,588.66 Non-current assets: Long-term receivables 783,360,606.40 793,046,240.11 Long-term equity investments 48,700,421,740.20 50,176,577,263.40 Investments in other equity instruments 261,319,162.27 247,848,314.30 Other non-current financial assets 2,939,477,551.93 2,087,872,081.94 Investment property 5,907,911,884.65 5,890,146,989.51 Fixed assets 26,540,880,013.69 22,994,190,880.43 Construction in progress 6,844,559,662.45 5,499,426,090.06 Engineering material 13,911,742.66 - Right-of-use assets 6,505,658,114.64 - Intangible assets 23,888,348,682.74 20,761,018,044.54 R&D expense 14,968,306.82 - Goodwill 8,681,769,583.92 8,335,895,842.35 Long-term prepaid expense 233,818,993.63 235,706,437.21 Deferred income tax assets 120,520,020.83 66,708,157.19 Other non-current assets 2,119,736,766.29 395,191,485.98 Total non-current assets 133,556,662,833.12 117,483,627,827.02 Total assets 145,187,177,118.55 128,018,084,415.68

16 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Item 31 March 2019 31 December 2018 Current liabilities: Short-term borrowings 7,669,361,618.42 3,425,291,312.62 Notes and accounts payable 639,804,961.10 429,120,690.97 Receipts in advance 47,368,404.19 29,170,709.86 Accrued payroll 370,791,975.36 433,489,555.40 Taxes payable 374,233,431.53 345,183,422.42 Other payables 2,705,463,803.57 2,245,670,528.89 Including: Interest payable 498,029,824.08 555,545,627.60 Dividends payable 66,052,207.09 66,052,207.09 Contractual liabilities 71,046,766.16 49,993,895.50 non-current liabilities due within one year 3,213,270,461.80 2,349,849,449.96 Other current liabilities 686,341,705.75 602,659,721.80 Total current liabilities 15,777,683,127.88 9,910,429,287.42 Non-current liabilities: Long-term borrowings 8,422,809,110.33 6,971,479,842.18 Bonds payable 21,643,668,439.19 22,097,467,096.40 Lease liabilities 989,868,412.75 - Long-term payables 2,027,482,133.04 1,294,190,118.18 Long-term payroll payable 374,926,420.15 375,325,127.65 Provisions 34,769,055.75 34,951,392.27 Deferred income 1,034,504,773.94 228,658,214.64 Deferred income tax liabilities 3,780,247,583.66 2,911,074,941.27 Other non-current liabilities 3,815,123,370.42 3,777,582,522.86 Total non-current liabilities 42,123,399,299.23 37,690,729,255.45 Total liabilities 57,901,082,427.11 47,601,158,542.87 Shareholders’equity: Share capital 1,793,412,378.00 1,793,412,378.00 Capital reserves 19,471,423,274.62 19,426,912,957.05 Other comprehensive income -58,102,973.53 88,925,978.57 Special reserves 13,590,332.54 8,231,080.43 Surplus reserves 527,175,908.67 527,175,908.67 Retained earnings 9,692,902,901.90 8,915,817,110.21 Total equity attributable to parent company 31,440,401,822.20 30,760,475,412.93 shareholders’ Minority interests 55,845,692,869.24 49,656,450,459.88 Total shareholders’ equity 87,286,094,691.44 80,416,925,872.81 Total liabilities and shareholders’ equity 145,187,177,118.55 128,018,084,415.68

The financial statements from Page 19 to Page 30 have been signed by: Legal representative: Bai Jingtao Chief Financial Officer: Wen Ling Person-in-charge of the accounting organ: Sun Ligan

17 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

2. Parent Company Balance Sheet

Unit: RMB

Item 31 March 2019 31 December 2018

Current assets: Cash and bank balances 142,886,668.11 389,841,854.93 Notes and accounts receivable 11,179,233.40 23,444,175.65

Accounts receivable 11,179,233.40 23,444,175.65

Other receivables 609,568,742.31 651,050,233.08

Including: Interest receivable 4,438.52 34,899.02

Dividends receivable 329,153,465.74 329,153,465.70

Inventories 137,993.08 165,553.46 Other current assets -178,648.79 1,563,111.61 Total current assets 763,593,988.11 1,066,064,928.73 Non-current assets: Long-term receivables 11,004,284.75 11,004,284.75 Long-term equity investments 28,513,487,952.33 28,544,261,576.96

Investments in other equity instruments 527,181,090.00 151,746,700.00

Investment property 13,805,209.81 12,685,959.06 Fixed assets 185,001,423.89 190,804,655.63 Construction in progress 2,986,692.93 2,500,843.87

Right-of-use assets 10,445,577.65 -

Intangible assets 57,082,209.88 57,755,603.44 Long-term prepaid expense 3,746,365.90 3,785,801.32 Total non-current assets 29,324,740,807.14 28,974,545,425.03 Total assets 30,088,334,795.25 30,040,610,353.76 Current liabilities: Short-term borrowings 604,404,000.00 377,716,000.00 Notes and accounts payable 10,059,547.81 13,125,624.29

Contractual liabilities 59,603.00 92,003.00

Accrued payroll 12,524,410.54 26,605,190.52 Taxes payable 1,797,946.21 18,826,587.50 Other payables 765,968,033.25 717,536,924.18

Including: Interest payable 14,501,258.56 15,011,119.82

Dividends payable 37,608,540.65 37,608,540.65

Current portion of non-current liabilities 305,423,684.85 299,531,506.81 Other current liabilities - 200,000,000.00 Total current liabilities 1,700,237,225.66 1,653,433,836.30

18 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Item 31 March 2019 31 December 2018

Non-current liabilities:

Lease liabilities 5,167,625.19 -

Long-term payables 150,974,000.00 151,710,000.00 Deferred income tax liabilities 34,204,375.00 34,179,375.00 Total non-current liabilities 190,346,000.19 185,889,375.00 Total liabilities 1,890,583,225.85 1,839,323,211.30 Shareholders’ equity: Share capital 1,793,412,378.00 1,793,412,378.00 Capital reserves 25,517,679,153.52 25,517,647,180.04 Other comprehensive income 102,713,125.00 102,638,125.00 Special reserves 219,439.38 470,465.59 Surplus reserves 527,175,908.67 527,175,908.67 Retained earnings 256,551,564.83 259,943,085.16 Total shareholders’ equity 28,197,751,569.40 28,201,287,142.46 Total liabilities and shareholders’ equity 30,088,334,795.25 30,040,610,353.76

19 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

3. Consolidated Income Statement Unit: RMB Item Q1 2019 Q1 2018 1. Revenue 2,702,894,522.99 2,172,750,441.44 Including: Operating revenue 2,702,894,522.99 2,172,750,441.44 2. Costs and expenses 2,457,671,031.93 1,883,168,620.16 Including: Cost of sales 1,660,826,958.58 1,305,238,877.12 Taxes and surcharges 45,674,668.50 45,863,744.88 Administrative expense 287,367,055.02 231,226,325.01 R&D expense 30,052,292.96 24,392,333.00 Finance costs 431,930,403.64 275,761,221.02 Including: Interest expense 512,196,697.85 370,157,265.19 Interest income 59,236,488.39 56,758,131.14 Asset impairment loss -25,031.28 - Credit impairment loss 1,844,684.51 686,119.13 Add: Other income 20,798,769.01 13,529,113.16 Return on investment (“-” for loss) 1,491,659,164.10 684,366,403.71 Including: Share of profit or loss of joint ventures and associates 759,492,112.86 684,366,403.71 Gain on changes in fair value (“-” for loss) 803,456,059.74 137,919,530.28 Asset disposal income (“-” for loss) 779,531.17 -3,211,017.91 3. Operating profit (“-” for loss) 2,561,917,015.08 1,122,185,850.52 Add: Non-operating income 5,833,763.89 7,741,312.94 Less: Non-operating expense 2,959,236.62 1,607,303.64 4. Total profit (“-” for loss) 2,564,791,542.35 1,128,319,859.82 Less: Income tax expense 428,680,888.19 196,407,949.26 5. Net profit (“-” for net loss) 2,136,110,654.16 931,911,910.56 5.1 Categorization by continuity of operation 5.1.1 Net profit of continuing operation (“-” for net loss) 2,136,110,654.16 931,911,910.56 5.1.2 Net profit of discontinued operation (“-” for net loss) - - 5.2 Categorization by attribution of ownership 5.2.1 Net profit attributable to parent company owners 814,944,249.12 381,903,088.64 5.2.2 Net profit attributable to minority interests 1,321,166,405.04 550,008,821.92 6. Other comprehensive income, net of tax -185,440,397.65 -439,706,681.57 Attributable to parent company owners 147,028,952.60 -135,541,068.56 6.1 Items that will not be reclassified to profit or loss -74,999.61 -232,500.00 6.1.1 Other comprehensive income that will not be reclassified to - - profit or loss under the equity method 6.1.2 Changes in the fair value of investments in other equity -74,999.61 -232,500.00 instruments 6.2 Items that will be reclassified to profit or loss 147,103,952.21 -135,308,568.56 6.2.1 Other comprehensive income that will be reclassified to profit 5,312,466.40 1,593,391.45 or loss under the equity method 6.2.2 Differences arising from the translation of foreign 141,791,485.81 -136,901,960.01 currency-denominated financial statements Attributable to minority interests -332,469,350.25 -304,165,613.01 7. Total comprehensive income 1,950,670,256.51 492,205,228.99 Attributable to parent company owners 961,973,201.72 246,362,020.08 Attributable to minority interests 988,697,054.79 245,843,208.91 8. Earnings per share 8.1 Basic earnings per share 0.454 0.213 8.2 Diluted earnings per share 0.454 0.213 20 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

4. Parent Company Income Statement

Unit: RMB

Item Q1 2019 Q1 2018

1. Operating revenue 44,067,273.73 44,714,453.31

Less: Cost of sales 34,142,026.25 30,942,499.65

Taxes and surcharges 767,603.79 457,736.06

Administrative expense 17,391,388.67 17,526,593.90

Finance costs 7,602,897.36 -4,335,368.90

Including: Interest expense 11,494,411.09 6,181,659.53

Interest income 3,408,108.16 6,643,296.49

Return on investment (“-” for loss) 12,832,064.39 16,605,846.24

Including: Share of profit or loss of joint ventures and 12,832,064.39 16,605,846.24 associates

Asset disposal income (“-” for loss) - -934,006.99

2. Operating profit (“-” for loss) -3,004,577.95 15,794,831.85

Add: Non-operating income 6,680.14 3,113.00

Less: Non-operating expense 68,028.29 108.95

3. Total profit (“-” for loss) -3,065,926.10 15,797,835.90

4. Net profit (“-” for net loss) -3,065,926.10 15,797,835.90

4.1 Net profit of continuing operation (“-” for net loss) -3,065,926.10 15,797,835.90

4.2 Net profit of discontinued operation (“-” for net loss) - -

5. Other comprehensive income, net of tax 75,000.00 -232,500.00

5.1 Items that will not be reclassified to profit or loss 75,000.00 -232,500.00

5.1.1 Other comprehensive income that will not be reclassified to - - profit or loss under the equity method 5.1.2 Changes in the fair value of investments in other equity 75,000.00 -232,500.00 instruments

5.2 Items that will be reclassified to profit or loss - -

5.2.1 Other comprehensive income that will be reclassified to - - profit or loss under the equity method 5.2.2 Differences arising from the translation of foreign - - currency-denominated financial statements

6. Total comprehensive income -2,990,926.10 15,565,335.90

21 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

5. Consolidated Cash Flow Statement Unit: RMB Item Q1 2019 Q1 2018 1. Cash flows from operating activities: Cash received from sale of commodities and rendering of services 2,647,510,819.37 1,819,094,588.96 Receipts of tax refunds 23.44 1,486,219.30 Cash received from other operating activities 437,792,411.01 163,911,046.96 Subtotal of cash received from operating activities 3,085,303,253.82 1,984,491,855.22 Payments for commodities and services 736,317,677.30 573,837,504.91 Cash paid to and on behalf of employees 727,281,690.78 570,853,953.70 Taxes paid 225,198,426.64 126,141,464.22 Cash paid in other operating activities 247,542,337.46 225,497,221.04 Subtotal of cash paid in operating activities 1,936,340,132.18 1,496,330,143.87 Net cash received from/used in operating activities 1,148,963,121.64 488,161,711.35 2. Cash flows from investing activities: Return on investment 78,044,109.23 64,600,205.42 Cash received from the disposal of fixed assets, intangible assets and other 23,992,441.00 2,400,042.15 long-lived assets Cash recevied from the disposal of subsidiaries and other business units - 1,411,633,655.68 Cash received from other investing activities 1,315,937,327.03 - Subtotal of cash received from investing activities 1,417,973,877.26 1,478,633,903.25 Payments for the acquisition of fixed assets, intangible assets and other 650,139,928.72 481,958,576.95 long-lived assets Payments for investments 415,845,100.00 63,458,839.54 Net payments for the acquisition of subsidiaries and other business units - 4,844,558,474.75 Cash used in other investing activities 255,659,104.33 25,463,391.23 Subtotal of cash used in investing activities 1,321,644,133.05 5,415,439,282.47 Net cash received from/used in investing activities 96,329,744.21 -3,936,805,379.22 3. Cash flows from financing activities: Cash received from capital contributions 460,518,459.96 15,950,000.00 Including: Capital contributions by minority interests to subsidiaries 460,518,459.96 15,950,000.00 Borrowings obtained 5,720,896,211.18 9,562,436,640.00 Subtotal of cash received from financing activities 6,181,414,671.14 9,578,386,640.00 Repayments of borrowings 6,241,679,082.60 6,483,722,640.00 Payments for interest and dividends 575,131,285.06 231,250,932.71 Including: Dividends paid by subsidiaries to minority interests 24,360,440.28 9,307,713.92 Cash used in other financing activities 114,109,500.00 31,028,691.80 Subtotal of cash used in financing activities 6,930,919,867.66 6,746,002,264.51 Net cash received from/used in financing activities -749,505,196.52 2,832,384,375.49 4. Effect of foreign exchange rate changes on cash and cash equivalents -39,571,072.82 -64,787,995.88 5. Net increase in cash and cash equivalents 456,216,596.51 -681,047,288.26 Add: Cash and cash equivalents, beginning of the period 5,373,281,504.75 7,729,460,082.75 6. Cash and cash equivalents, end of the period 5,829,498,101.26 7,048,412,794.49

22 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

6. Parent Company Cash Flow Statement

Unit: RMB

Item Q1 2019 Q1 2018

1. Cash flows from operating activities:

Cash received from sale of commodities and rendering of services 51,258,278.89 47,824,975.82

Cash received from other operating activities 236,323,914.96 212,220,080.47

Subtotal of cash received from operating activities 287,582,193.85 260,045,056.29

Payments for commodities and services 15,108,762.13 14,411,768.08

Cash paid to and on behalf of employees 40,097,735.78 45,449,193.68

Taxes paid 18,735,502.45 1,361,330.99

Cash used in other operating activities 183,200,592.57 188,998,993.20

Subtotal of cash used in operating activities 257,142,592.93 250,221,285.95

Net cash received from/used in operating activities 30,439,600.92 9,823,770.34

2. Cash flows from investing activities:

Return on investment 43,605,689.02 38,562,004.83 Cash received from the disposal of fixed assets, intangible assets and other - 178,876.00 long-lived assets Cash received from other investing activities 228,867,355.24 -

Subtotal of cash received from investing activities 272,473,044.26 38,740,880.83 Payments for the acquisition of fixed assets, intangible assets and other 1,715,483.68 2,438,533.25 long-lived assets Payments for investments 375,334,390.00 -

Cash used in other investing activities 185,800,000.00 -

Subtotal of cash used in investing activities 562,849,873.68 2,438,533.25

Net cash received from/used in investing activities -290,376,829.42 36,302,347.58

3. Cash flows from financing activities:

Borrowings obtained 280,000,000.00 -

Subtotal of cash received from financing activities 280,000,000.00 -

Repayments of borrowings 250,000,000.00 -

Payments for interest and dividends 11,647,054.79 -

Cash used in other financing activities 1,413,599.00 -

Subtotal of cash used in financing activities 263,060,653.79 -

Net cash received from/used in financing activities 16,939,346.21 -

4. Effect of foreign exchange rate changes on cash and cash equivalents -3,957,304.53 -403,905.95

5. Net increase in cash and cash equivalents -246,955,186.82 45,722,211.97

Add: Cash and cash equivalents, beginning of the period 389,841,854.93 230,039,345.73

6. Cash and cash equivalents, end of the period 142,886,668.11 275,761,557.70

23 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

II Adjustments to the Financial Statements

1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New Standards Governing Financial Instruments, Revenue or Leases

√ Applicable □ Not applicable Consolidated Balance Sheet Unit: RMB

Item 31 December 2018 1 January 2019 Adjustment

Current assets:

Cash and bank balances 7,070,308,704.75 7,070,308,704.75 -

Notes and accounts receivable 1,120,839,172.51 1,120,839,172.51

Including: Notes receivable 11,608,669.43 11,608,669.43 -

Accounts receivable 1,109,230,503.08 1,109,230,503.08 -

Prepayments 124,404,862.87 81,845,182.30 -42,559,680.57

Other receivables 799,559,226.45 799,559,226.45 -

Including: Interest receivable 33,041,147.73 33,041,147.73 -

Dividends receivable 259,804,145.16 259,804,145.16 -

Inventories 108,567,270.02 108,567,270.02 -

Assets classified as held for sale 115,356,162.94 115,356,162.94 -

Other current assets 1,195,421,189.12 1,195,421,189.12 -

Total current assets 10,534,456,588.66 10,491,896,908.09 -42,559,680.57

Non-current assets:

Long-term receivables 793,046,240.11 793,046,240.11 -

Long-term equity investments 50,176,577,263.40 50,176,577,263.40 -

Investments in other equity instruments 247,848,314.30 247,848,314.30 -

Other non-current financial assets 2,087,872,081.94 2,087,872,081.94 -

Investment property 5,890,146,989.51 5,890,146,989.51 -

Fixed assets 22,994,190,880.43 17,477,797,429.30 -5,516,393,451.13 -

Construction in progress 5,499,426,090.06 5,499,426,090.06 -

Right-of-use assets N/A 6,549,564,031.55 6,549,564,031.55

Intangible assets 20,761,018,044.54 20,761,018,044.54 -

Goodwill 8,335,895,842.35 8,335,895,842.35 -

Long-term prepaid expense 235,706,437.21 235,706,437.21 -

Deferred income tax assets 66,708,157.19 66,708,157.19 -

Other non-current assets 395,191,485.98 395,191,485.98 -

Total non-current assets 117,483,627,827.02 118,516,798,407.44 1,033,170,580.42

Total assets 128,018,084,415.68 129,008,695,315.53 990,610,899.85

24 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Item 31 December 2018 1 January 2019 Adjustment Current liabilities:

Short-term borrowings 3,425,291,312.62 3,425,291,312.62 -

Notes and accounts payable 429,120,690.97 429,120,690.97 -

Receipts in advance 29,170,709.86 29,170,709.86 -

Accrued payroll 433,489,555.40 433,489,555.40 -

Taxes payable 345,183,422.42 345,183,422.42 -

Other payables 2,245,670,528.89 2,245,670,528.89 -

Including: Interest payable 555,545,627.60 555,545,627.60 -

Dividends payable 66,052,207.09 66,052,207.09 -

Contractual liabilities 49,993,895.50 49,993,895.50 -

Current portion of non-current liabilities 2,349,849,449.96 2,473,888,817.84 124,039,367.88

Other current liabilities 602,659,721.80 602,659,721.80 -

Total current liabilities 9,910,429,287.42 10,034,468,655.30 124,039,367.88

Non-current liabilities:

Long-term borrowings 6,971,479,842.18 6,971,479,842.18 -

Bonds payable 22,097,467,096.40 22,097,467,096.40 -

Lease liabilities N/A 1,020,239,824.73 1,020,239,824.73

Long-term payables 1,294,190,118.18 1,252,860,200.23 -41,329,917.95

Long-term payroll payable 375,325,127.65 375,325,127.65 -

Provisions 34,951,392.27 34,951,392.27 -

Deferred income 228,658,214.64 228,658,214.64 -

Deferred income tax liabilities 2,911,074,941.27 2,911,074,941.27 -

Other non-current liabilities 3,777,582,522.86 3,777,582,522.86 -

Total non-current liabilities 37,690,729,255.45 38,669,639,162.23 978,909,906.78

Total liabilities 47,601,158,542.87 48,704,107,817.53 1,102,949,274.66

Shareholders’ equity:

Share capital 1,793,412,378.00 1,793,412,378.00 -

Capital reserves 19,426,912,957.05 19,426,912,957.05 -

Other comprehensive income 88,925,978.57 88,925,978.57 -

Special reserves 8,231,080.43 8,231,080.43 -

Surplus reserves 527,175,908.67 527,175,908.67 -

Retained earnings 8,915,817,110.21 8,877,958,652.78 -37,858,457.43 Total equity attributable parent company 30,760,475,412.93 30,722,616,955.50 -37,858,457.43 owners Minority interests 49,656,450,459.88 49,581,970,542.50 -74,479,917.38

Total shareholders’ equity 80,416,925,872.81 80,304,587,498.00 -112,338,374.81

Total liabilities and shareholders’ equity 128,018,084,415.68 129,008,695,315.53 990,610,899.85

25 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Balance Sheet of parent company Unit: RMB

Item 31 December 2018 1 January 2019 Adjustment

Current assets:

Cash and bank balances 389,841,854.93 389,841,854.93 -

Notes and accounts receivable 23,444,175.65 23,444,175.65 -

Accounts receivable 23,444,175.65 - -

Other receivables 651,050,233.08 651,050,233.08 -

Including: Interest receivable 34,899.02 34,899.02 -

Dividends receivable 329,153,465.70 329,153,465.70 -

Inventories 165,553.46 165,553.46 -

Other current assets 1,563,111.61 1,563,111.61 -

Total current assets 1,066,064,928.73 1,066,064,928.73 -

Non-current assets:

Long-term receivables 11,004,284.75 11,004,284.75 -

Long-term equity investments 28,544,261,576.96 28,544,261,576.96 -

Investments in other equity instruments 151,746,700.00 151,746,700.00 -

Investment property 12,685,959.06 12,685,959.06 -

Fixed assets 190,804,655.63 190,804,655.63 -

Construction in progress 2,500,843.87 2,500,843.87 -

Right-of-use assets N/A 11,966,380.80 11,966,380.80

Intangible assets 57,755,603.44 57,755,603.44 -

Long-term prepaid expense 3,785,801.32 3,785,801.32 -

Total non-current assets 28,974,545,425.03 28,986,511,805.83 11,966,380.80

Total assets 30,040,610,353.76 30,052,576,734.56 11,966,380.80

Current liabilities:

Short-term borrowings 377,716,000.00 377,716,000.00 -

Notes and accounts payable 13,125,624.29 13,125,624.29 -

Contractual liabilities 92,003.00 92,003.00 -

Accrued payroll 26,605,190.52 26,605,190.52 -

Taxes payable 18,826,587.50 18,826,587.50 -

Other payables 717,536,924.18 717,536,924.18 -

Including: Interest payable 15,011,119.82 15,011,119.82 -

Dividends payable 37,608,540.65 37,608,540.65 -

Current portion of non-current liabilities 299,531,506.81 305,454,311.08 5,922,804.27

Other current liabilities 200,000,000.00 200,000,000.00 -

Total current liabilities 1,653,433,836.30 1,659,356,640.57 5,922,804.27

26 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

Item 31 December 2018 1 January 2019 Adjustment

Non-current liabilities:

Lease liabilities N/A 6,369,170.76 6,369,170.76

Long-term payables 151,710,000.00 151,710,000.00 -

Deferred income tax liabilities 34,179,375.00 34,179,375.00 -

Total non-current liabilities 185,889,375.00 192,258,545.76 6,369,170.76

Total liabilities 1,839,323,211.30 1,851,615,186.33 12,291,975.03

Shareholders’ equity:

Share capital 1,793,412,378.00 1,793,412,378.00 -

Capital reserves 25,517,647,180.04 25,517,647,180.04 -

Other comprehensive income 102,638,125.00 102,638,125.00 -

Special reserves 470,465.59 470,465.59 -

Surplus reserves 527,175,908.67 527,175,908.67 -

Retained earnings 259,943,085.16 259,617,490.93 -325,594.23

Total shareholders’ equity 28,201,287,142.46 28,200,961,548.23 -325,594.23

Total liabilities and shareholders’ equity 30,040,610,353.76 30,052,576,734.56 11,966,380.80

Note for adjustment: The Company began to implement the new lease standards 1 January 2019. On that implementation date, the Company conducted financial accounting treatment in situations where lease liabilities shall be measured by the present value discounted by lessee’s incremental borrowing rate on the first execution day or right-of-use assets shall be measured by new lease standards if it’s from the beginning date of lease term. In the balance sheet, assets and liabilities increased at the same time due to the existence of operational lease contract, but it did not have significant impacts on the Company’s financial situations.

2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New Standards Governing Financial Instruments or Leases

□ Applicable √ Not applicable

27 China Merchants Port Group Co., Ltd. The Report for the First Quarter of 2019

III、Auditor’s report

Is this report audited? □ Yes √ No

For and on behalf of the Board

Bai Jingtao

Legal representative of

China Merchants Port Group Co., Ltd.

Dated 30 April 2019

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