The China Merchants Group's "14th Five-Year Plan" High-Quality Development Achievements Exhibition recently opened, systematically reviewing and centrally displaying the high-quality development results achieved during the "14th Five-Year Plan" period. This installment introduces the new progress made by the Group in optimizing and upgrading its traditional industries. During the "14th Five-Year Plan" period, the Group actively promoted the high-end, intelligent, green, and international transformation of its traditional industries, focusing on the "two shifts" in growth model from quantity to quality and in business structure from heavy to light, while coordinating the advancement, retreat, consolidation, and integration of traditional businesses to continuously enhance the value creation capacity for high-quality development. The Group has consolidated its core business advantages: China Merchants Energy Shipping strategically positioned itself in the gas transportation business, while its ro-ro business accelerated its strategic transformation from domestic to international focus; China Merchants Shipbuilding successfully entered the LNG carrier construction sector, currently ranking sixth globally in terms of order book; China Merchants Tonggu successfully acquired Hong Kong's leading leisure food company, 360 Degrees; China Merchants Financial Control, in collaboration with China Merchants Leasing, acquired and established China Merchants Factoring, creating a composite advantage. New growth drivers are being cultivated: China Nanshan acquired equity in China Nuclear Energy Technology, formally entering the new energy industry; Huagi Investment, under China Merchants Expressway Network, expanded its investment and operation in clean energy, adding 52.38 megawatts of new energy installed capacity. The pace of exiting non-core businesses has been accelerated: China Merchants Shekou's development business withdrew from non-core cities and exited the cruise ship and hospital operation businesses; China Merchants Shipbuilding disposed of the historical burden of offshore equipment; China Merchants Tonggu proactively exited the bulk commodity trade business; China Merchants Leasing reduced its urban investment-type business; China Merchants Renhe Life Insurance shifted its product structure towards protection-type and other non-interest-rate-sensitive products. Asset management quality and efficiency have been enhanced: The Group launched a special campaign to revitalize assets, recovering a cumulative total of 36.9 billion yuan in funds in 2024, with a completion rate of 111.5%; China Merchants Chuangke conducted a comprehensive review of companies invested in by its investment platform, strengthening asset cleanup and exit efforts. Business integration in the shipping and logistics sector has been promoted: China Merchants Energy Shipping integrated Sinotrans Container Lines and increased its stake through the acquisition of Antong Holdings, aiming to build a leading Chinese container shipping enterprise; Changjiang Shipping Group integrated China Merchants Nanjing Tanker, achieving a leap in profitability; By integrating the advantageous resources of Changjiang Shipping Group and Sinotrans, a specialized platform for Yangtze River shipping and logistics was established. Integration of Hong Kong financial businesses has been advanced: The business integration of China Merchants Bank Wing Lung Bank and China Merchants Bank Hong Kong Branch led to an improvement in total asset ranking; The merger of China Merchants Bank Wing Lung Insurance and China Merchants Insurance resulted in an improved premium income ranking; Bosera International's integration of China Merchants Asset Management (Hong Kong) kept its AUM steadily among the top three Chinese-funded institutions in Hong Kong. A Group-level platform for managing existing assets has been established: Sinotrans & CSC was designated as the Group's specialized asset management platform, generating revenue of 2.64 billion yuan through asset disposal and revitalization. A breakthrough has been achieved in synergistic integration through a "holistic warfare" approach: The Group systematically advanced the construction of "One China Merchants Group"; It implemented a list-based management approach for synergy projects, characterized by a "holistic synergy integration plan + specialized plans + specific matters" framework. The effectiveness of strategic cooperation has become more pronounced: A strategic customer management system featuring "a combination of centralized and decentralized management, with grading and layering" was established, and a key customer management team mechanism was implemented, leading to a continuous enhancement in the cooperation level with major key clients; Ties with universities such as Tsinghua University and The University of Hong Kong have become closer. In high-end marine equipment manufacturing: In November 2025, the first 180,000 cubic meter LNG carrier built by China Merchants Shipbuilding left the dock for sea trials. In July 2024, the Group delivered the world's largest 460,000-ton Floating Production Storage and Offloading unit (FPSO) in a one-stop process, referred to as a colossal offshore refinery factory. Four shipyards under China Merchants Shipbuilding, including Nanjing Jinling, were rated as "National Manufacturing Single Champions"; they hold the top global market share in order books for car carriers, handy-sized chemical tankers, and high-end ro-pax ferries. The Group delivered a 1600T wind turbine installation platform with a localization rate of 98.43%, the world's largest 460,000-ton FPSO, and saw the successful undocking of its self-developed and designed 180,000 cubic meter LNG carrier. In 2025, it successively delivered a 9,200-car dual-fuel PCTC and the world's largest currently 9,500-car methanol-ready PCTC. In technology finance: China Merchants Bank has built a full lifecycle financial service system for technology enterprises, positioning technology finance as a leading, strategic direction for serving the real economy and setting an excellent benchmark within the industry. Leveraging the Group's flywheel synergy advantages, it creates value by supporting the development of tech finance, contributing to the advancement of new quality productive forces. The "China Merchants Good House" initiative: The Changsha Tianqing Mansion project, a benchmark for product strength under the "China Merchants Good House" initiative, has achieved catch-up and advancement in product capability. China Merchants Shekou, in collaboration with authoritative industry institutions, developed the "China Merchants Good House" system, establishing a new paradigm for quality housing based on 7 dimensions, 28 scenario modules, and 485 technical points. In the CRIC product strength rankings, China Merchants Shekou's residential product strength ranking rose from 10th in 2020 to 4th in 2024; in the first half of 2025, three of its projects entered the top 20 in CRIC's "China Good House" evaluation. In green living environments: The Shanghai Brilliant City Exhibition Center is Shanghai's first pilot zero-energy consumption building. China Merchants Shekou focuses on enhancing capabilities in green building and green operations, leading the industry's low-carbon transformation through benchmark projects. It has cumulatively developed over 530 green building projects, with a total floor area exceeding 63 million square meters. Among these, there are over 35 ultra-low/near-zero/zero energy consumption projects, with a total floor area exceeding 2.8 million square meters. In AI+Logistics: Sinotrans has built smart logistics service capabilities covering all business scenarios, comprehensively exploring the upgrade to "AI+". Its "Document Connect" solution has increased the generalization accuracy for long-tail logistics documents by 30%. Through centralized customs declaration operations combined with technologies like AI and RPA, document preparation efficiency under the shared customs affairs center model has improved by over 4 times compared to traditional manual methods. It pioneered the launch of an L4 clean energy autonomous driving logistics trunk line in the industry, accumulating over 3.5 million kilometers in mileage, making it the largest autonomous driving trunk transport fleet in China; it has built 27 smart warehouses domestically and internationally, achieving automated and intelligent efficient operation of logistics storage. In AI+Finance: China Merchants Bank has invested a cumulative total of over 50 billion yuan in its digital-intelligent transformation, successfully building the "CMB on Cloud" infrastructure. Big data services cover over 65% of its business personnel. It is systematically advancing the goal of building an intelligent bank, aiming to create a world-leading smart bank. Programming assistants cover 100% of its R&D staff. It has implemented over 900 intelligent scenarios, with a daily total throughput of 11.5 billion tokens, and various intelligent indicators are at a leading level in the industry. In AI+Pharmaceuticals: The application scenario "Animal-Human Data Conversion AI Model Accelerates New Drug Evaluation" from China Merchants Chuangke's Tianjin Institute of Pharmaceutical Sciences was selected among the first batch of central state-owned enterprises' strategic high-value AI scenarios. Relying on the national scientific research platform for drug developability assessment and systemic translation, it innovatively applies "big data + AI technology" to break through the bottleneck of converting animal data to human data, significantly shortening the new drug R&D cycle and improving the success rate. This represents another major AI application breakthrough for the Group following "AI+Logistics" and "AI+Finance". In smart ports: The Mawan Smart Port successfully commenced operations, achieving a 30% improvement in comprehensive operational efficiency. It became the fourth port in China to receive the highest five-star rating for smart ports, with a comprehensive paperless cargo release ratio exceeding 90%. The Container Terminal Operating System "CTOS" is being continuously promoted to overseas terminals, while the Bulk Terminal Operating System "BTOS" has achieved full coverage of the main bulk terminals. In smart shipbuilding: China Merchants Shipbuilding's Jiangsu Heavy Industry's smart manufacturing for high-tech ships covers five major links: factory construction, R&D design, production management, production operations, and operational management. It focuses on building 29 typical application scenarios and has completed AI applications for 10 high-value scenarios. By integrating over 2,300 intelligent production equipment units, more than 40 digital systems, and over 30 professional design software tools, it has achieved intelligent coverage of the entire shipbuilding process and the entire business chain, providing a practical model for the digital-intelligent transformation and upgrading of the Group and even the shipbuilding industry. In smart shipping: China Merchants Energy Shipping took the lead in the industry by releasing the Shipping GPT large language model and developing the "Marvelous Boat AI" intelligent system, building a visual operations management platform covering the entire fleet. It participates in the digital transformation of international shipping trade, launching the "Silk Road Cloud Chain" platform. Led by the electronic bill of lading platform, it provides digital-intelligent platform services for parties in the shipping trade ecosystem, including document digitization, financial and insurance innovation, and data factor circulation. In green finance innovation products: China Merchants Bank has established a "3+1" green development system, supported by the pillars of a green finance business system, a green risk management system, and green CMB operations, with a green development guarantee system as the foundation, and has launched a series of green innovation products. In green finance reform and innovation: China Merchants Leasing's cumulative scale of green leasing assets has exceeded 11 billion yuan. It issued the first innovative green bond product, a blue bond, on the Shenzhen Stock Exchange, which was selected as a promotion case for Guangdong's green finance reform and innovation. In comprehensive green logistics services: Sinotrans is committed to becoming a "practitioner and innovator in building a green logistics ecosystem", providing customers with high value-added comprehensive green logistics services and contributing to the green and low-carbon development of the logistics industry. In new energy ship design: Changjiang Shipping Group's key technologies for designing large inland river cruise ships have reached internationally leading levels. It has developed and designed the hydrogen fuel cell-powered demonstration vessel "Three Gorges Hydrogen Boat 1" and the domestic first inland river liquid ammonia carrier "Xin Tongda", among other new energy vessels. In green and low-carbon demonstration ports: China Merchants Port added 12.3 MW of photovoltaic power generation in 2024, reducing annual carbon emissions by approximately 3,600 tons. It took the lead in applying pure electric front-end loaders and pure electric empty container handlers. The Shenzhen West Home Port was the first in China to propose creating a "hydrogen energy demonstration port". It achieved full coverage of shore power construction tasks for five types of specialized berths. In green shipping: The global first dual-wing sail-assisted VLCC "New Aden", operated by China Merchants Energy Shipping, is equipped with two pairs of new-generation large rigid wing sails, achieving an average annual fuel saving rate of 7.4%. It is considered an outstanding representative of new energy-saving and environmentally friendly VLCCs, with comprehensive performance indicators reaching world-class levels.
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