China Merchants Port : INSIDE INFORMATION - ANNUAL REPORT OF THE SUBSTANTIAL SHAREHOLDER - CHINA MERCHANTS PORT GROUP CO., LTD. FOR T...

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(Incorporated in Hong Kong with limited liability under the Companies Ordinance)

(Stock Code: 00144)

INSIDE INFORMATION

ANNUAL REPORT OF THE SUBSTANTIAL SHAREHOLDER

CHINA MERCHANTS PORT GROUP CO., LTD. FOR THE YEAR ENDED 31 DECEMBER 2018

This announcement is made by China Merchants Port Holdings Company Limited (the "Company", together with its subsidiaries the "Group") pursuant to Rule 13.09 of the Listing Rules and the Inside Information Provisions (as defined under the Listing Rules) under Part XIVA of the Securities and Futures Ordinance (Chapter 571, the Laws of Hong Kong).

China Merchants Port Group Co., Ltd. (formerly known as Shenzhen Chiwan Wharf Holdings Limited) ("CMPG") is a substantial shareholder of the Company whose A shares and B shares are listed on the Shenzhen Stock Exchange. As at the date of this announcement, CMPG is interested in approximately 39.45% of the total issued shares of the Company.

Pursuant to the relevant listing rules of the Shenzhen Stock Exchange, CMPG is required to publish its annual report for the year ended 31 December 2018 (the "CMPG Annual Report") which contains financial information and certain operating statistics about the operations of the Group.

On 29 March 2019, CMPG released the CMPG Annual Report, details of which are appended to this announcement. The CMPG Annual Report is also available in the public domain (www.cninfo.com.cn).

Shareholders and potential investors should note that the CMPG Annual Report has been prepared in accordance with the Auditing Standards for Chinese Certified Public Accountants which are different from the accounting standards the Company adopts to prepare and present its financial information. As a result, the information contained in the CMPG Annual Report may differ

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substantially from the data disclosed in the interim and annual reports previously published by the Company. Public investors are hereby reminded of the risks which may result from inappropriate reliance upon the relevant information. Holders of securities issued by the Company and the public investors should exercise caution when dealing in the securities of the Company.

By Order of the Board

China Merchants Port Holdings Company Limited

Fu Gangfeng

Chairman

Hong Kong, 29 March 2019

As at the date of this announcement, the Board comprises Mr. Fu Gangfeng, Mr. Su Jian, Mr. Xiong Xianliang, Mr. Bai Jingtao, Mr. Wang Zhixian and Mr. Zheng Shaoping as executive directors; and Mr. Kut Ying Hay, Mr. Lee Yip Wah Peter, Mr. Li Kwok Heem John, Mr. Li Ka Fai David and Mr. Bong Shu Ying Francis as independent non-executive directors.

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China Merchants Port Group Co., Ltd.

Annual Report 2018

CHINA MERCHANTS PORT GROUP CO., LTD.

ANNUAL REPORT 2018

Date of Disclosure: 30 March 2019

China Merchants Port Group Co., Ltd.

Annual Report 2018

Chairman's Statement

Dear shareholders,

I hereby present to you the annual report of China Merchants Port Group Co., Ltd. and its subsidiaries (the "Company") for the year ended 31 December 2018. On behalf of the Board, I would like to express my sincere gratitude to all of you for your long-term support to the Company.

On 26 December 2018, the Company completed the assets restructuring, the change of company name and its listing on the SZSE. Following the change of name to "China Merchants Port Group Co., Ltd.", its strategic positioning underwent remarkable transformation and enhancement, and it evolved from a port operator in Chiwan Wharf, West Shenzhen Port Zone, to a globally leading port developer, investor and operator. As a result of the restructuring, the Company became a crucial vehicle for CMG to implement the "Belt and Road" Initiative promoted by China and the "Guangdong-HongKong-Macao Greater Bay Area" strategy. Serving not only as the headquarters of CMG's port sector, the Company is also the operating and management platform for the port assets and tier one capital of CMG, hence playing a key role in the consolidation and synergistic development of CMG's port assets.

Looking ahead, the Company aims to become a world-class integrated port service provider. With a focus on core port businesses, it will take part in international port investment, development and operation under the development model for the port ecosystem. Meanwhile, it will continue to expand along the value chain and establish an integrated port network service system that connects the world, so as to achieve scientific planning and balanced development on a global level. By offering top-notch and professional solutions, it will become customers' partner of choice for cooperation, which will create greater value for the Company, enhance return for shareholders, support local economies and global trade, and contribute to the healthy development of the port industry.

Review for the year

Since 2018, the global economy has in general maintained its growth momentum but on a shaky ground. The economic and political conditions have been increasingly complicated. Trade frictions provoked by the United States against numerous countries and regions worldwide have impacted corporate operating environment and financial market confidence, threatening the development of global economy and trade. In view of the macroeconomic condition with growing uncertainties over the development of global economy and trade, the Company has adhered to its

China Merchants Port Group Co., Ltd.

Annual Report 2018

strategic directives, acted under the overall operation philosophy of "enhancing core capability, insisting on both quality and efficiency, capitalising on opportunities of this era and striving to become a global leading enterprise", focused on the "five key priorities", namely, homebase port development, ports consolidation, overseas expansion, integration of industry and finance and business innovation, pursued various designated tasks in a comprehensive and pragmatic manner, and basically achieved its operating indicators formulated at the beginning of last year.

In 2018, the overall operating performance of the Company was satisfactory with steady growth of business. In terms of port operation, the port projects of the Company delivered a container throughput totalled 109.73 million TEUs, up 6.6% over last year. Looking into the regional performance, container throughput handled by the Group's ports in Mainland China totaled

81.39million TEUs, up 5.5% year-on-year. Ports in Hong Kong and Taiwan handled a combined container throughput of 7.67 million TEUs, up 2.5% year-on-year, while overseas operations delivered a container throughput of 20.66 million TEUs, up 12.9% year-on-year. Bulk cargo volume handled by the Group's ports increased by 1.5% year-on-year to 540 million tonnes, among which the Group's ports in Mainland China handled a total bulk cargo volume of 530 million tonnes, representing an increase of 1.6% year-on-year, while that of overseas ports decreased by 7.7% from 2017 to 4.99 million tonnes. Among the major ports, SIPG handled a container throughput of 42.01 million TEUs, representing a year-on-year increase of 4.4%, making it the largest port in the world for the ninth consecutive year. Container throughput handled in West Shenzhen Port Zone was

11.35million TEUs, up 1.5% year-on-year. In the overseas arena, Colombo International Container Terminals Limited ("CICT") in Sri Lanka delivered a year-on-year growth of 12.0% by handling a container throughput of 2.68 million TEUs. Lomé Container Terminal S.A. ("LCT") in Togo handled a container throughput of 1.05 million TEUs, representing a growth of 18.3% year-on-year. Kumport Liman Hizmetleri ve Lojistik Sanayi ve Ticaret Anonim Şirketi ("Kumport") in Turkey handled a container throughput of 1.26 million TEUs, representing a growth of 18.3% year-on-year. Terminal Link SAS acquired the port of Thessaloniki in Greece at the beginning of this year and it handled a container throughput of 13.64 million TEUs in the year, up 8.6% year-on-year. From March to December 2018, TCP Participações S.A. ("TCP") in Brazil, the transaction of which was completed in February 2018, handled a container throughput of 0.69 million TEUs.

In terms of key priorities, significant progress has been made in overseas expansion. The delivery of overseas port projects, including TCP in Paranaguá, Brazil and Port of Newcastle in Australia (the "Newcastle Port"), has been completed. The Djibouti International Free Trade Zone has successfully opened and garnered positive feedbacks. The consolidation of domestic ports has achieved remarkable breakthroughs. The Company has completed restructuring and is listed under a