Interim Report 2023

Management Discussion and Analysis 20 CHINA MERCHANTS PORT HOLDINGS COMPANY LIMITED Based on the above analysis and judgements, in the second half of 2023, the Group will adhere to the keynote of seeking progress while maintaining stability, tapping the new trends and implementing the new concepts. The Group will steadily promote the world-class construction with high quality and enhance the comprehensive service capabilities of supply chain. The Group will strive to realize its strategic goal of becoming a “world’s leading comprehensive port service provider” with high quality by well-performing on digitalization, marketization, internationalization, platformization and refinement. With respect to the construction of homebase ports, the West Shenzhen Port Zone will strictly adhere to the strategic goal of strong transportation country. The Group will continue to promote the construction of leading port, including the continuous optimization of cargo transportation system of West Shenzhen homebase port, the enhancement of container handling capacity, improving the waterway channel condition, with an aim to, creating favorable conditions for the continuous strengthening and expansion of West Shenzhen homebase port. In respect of overseas business, the Group will continue to optimize its overseas presence, as well as stabilize the development of overseas business, strengthen the business expansion, and enhance the geographical advantage of each overseas terminals. The Group will also improve the establishment of overseas management and control system through optimizing the management systems of overseas projects. In face of the current complicated international situation, the Group will deeply focus on key overseas area and continue to pay attention to the regional situation, thus exploring new investment opportunities. In terms of comprehensive development, the Group will keep abreast of the change in the global trade pattern, and focus on business model innovation and comprehensive extension of service value. Through the extension of port ecosystem, the Group will progressively extend to other sectors of the supply chain, in an effort to creating a regional supply chain ecosystem that can match with the port ecosystem. Regarding innovative development, the Group will stick to innovation-driven development and technology empowerment for industrial transformation and upgrade. To extend the first growth curve, the Group will put greater efforts in making breakthroughs for core technologies with great importance, so as to enhance the quality and efficiency of main business with the aid of technologies. To cultivate the second growth curve, the Group will push forward the innovation of business models and will make its presence in emerging industries and actively explore new technology-related business with high growth, so as to form an investment presence in green ports and smart ports, and transform from “volume economy” into “value economy” with the port-related supply chain services to be developed. In respect of capital operation, the Group will explore its value through “high quality development”, which focuses on exploring core assets values, and devote to enhance the return on investment through reshaping the asset allocation and optimizing the asset portfolio. In terms of operation management, the Group will continue to optimize the management system for various business lines to enhance its overall operation and management. The Group has optimized the operation and management system and has established a value-oriented management headquarters to facilitate its world-class operation and management system that sustainably creates value to a new level. With regard to marketing and commerce, the Group will comprehensively extend the services values, take more efforts on the location expansion of the coordinated composition ports, and facilitate the research and development of bonded, commerce and trade related extension platforms. The Group will continue to explore business opportunities, enhance the market competitiveness of new shipping routes, and strengthen the connectivity with shipping companies and enterprises at different levels.