SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
2015 Semi-annual Report
Date of disclosure: 27 August 2015
2015 Semi-annual Report
Section I. Important Reminders, Contents & Definition
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred to as “the
Company”) warrant that this report is factual, accurate and complete without any false record,
misleading statement or material omission. And they shall be jointly and severally liable for that.
This report has been reviewed and approved at the Fourth Meeting of the Eighth Board of Directors.
Director Ma Yong was unable to attend the Meeting for his own reason, but he had expressed his
consent to all proposals for the Meeting and authorized Deputy Chairman Wang Zhixian to attend
the Meeting, express opinions and sign relevant meeting documents on behalf of him.Independent
Director Su Qiyun was unable to attend the Meeting for his own reason, but he had expressed his
consent to all proposals for the Meeting and authorized Independent Director Li Changqing to
attend the Meeting, express opinions and sign relevant meeting documents on behalf of him.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
Mr. Zheng Shaoping, chairman of the Board of Directors, Mr. Zhang Fang, CFO, and Ms. Ma
Zhihong, financial manager, hereby confirm that the Financial Report enclosed in this report is
factual, accurate and complete.
The future plans, development strategies and some other forward-looking statements mentioned in
this report shall not be considered as virtual promises of the Company to investors. And investors
are kindly reminded to pay attention to possible risks.
This report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
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2015 Semi-annual Report
Contents
Section I. Important Reminders, Contents & Definition .............................................. 1
Section II. Company Profile .......................................................................................... 4
Section III. Highlights of Accounting Data & Financial Indicators ............................. 6
Section IV. Report of the Board of Directors ................................................................ 7
Section V. Significant Events ...................................................................................... 14
Section VI. Changes in Shares & Particulars about Shareholders .............................. 24
Section VII. Directors, Supervisors & Senior Management Staff .............................. 27
Section VIII. Financial Report .................................................................................... 29
Section IX. Documents Available for Reference ........................................................ 29
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2015 Semi-annual Report
Definition
Term Refers to Definition
Company, the Company or Chiwan
Refers to Shenzhen Chiwan Wharf Holdings Limited
Wharf
China Merchants Holdings (International) Company
CMHI Refers to
Limited
CND Group Refers to China Nanshan Development (Group) Inc.
Malai Storage Refers to Shenzhen Malai Storage Co., Ltd.
Keen Field Enterprises Limited, a wholly-funded
KFEL Refers to
subsidiary of China Merchants Holdings (International)
“the Company Law” Refers to “the Company Law of the People’s Republic of China”
“the Securities Law” Refers to “the Securities Law of the People’s Republic of China”
“the Articles of Association of Shenzhen Chiwan
“the Articles of Association” Refers to
Wharf Holdings Limited”
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2015 Semi-annual Report
Section II. Company Profile
I. Basic information of the Company
Stock abbreviation SCWA, SCWB Stock code 000022, 200022
Stock exchange listed with Shenzhen Stock Exchange
Chinese name of the Company 深圳赤湾港航股份有限公司
Abbr. of the Chinese name of
深赤湾
the Company
English name of the Company Shenzhen Chiwan Wharf Holdings Limited
Abbr. of the English name of
Chiwan Wharf
the Company
Legal representative of the
Mr. Zheng Shaoping, chairman
Company
II. Contact information
Company Secretary Securities Affairs Representative
Name Mr. Wang Yongli Ms. Hu Jingjing
8/F, Chiwan Petroleum Building, 8/F, Chiwan Petroleum Building,
Contact address
Shenzhen, PRC Shenzhen, PRC
Tel. +86 755 26694222 +86 755 26694222
Fax +86 755 26684117 +86 755 26684117
E-mail cwh@cndi.com cwh@cndi.com
III. Other information
1. Ways to contact the Company
The registered address, office address and their postal codes, website address and email address of
the Company did not change during the reporting period.
Registered address Chiwan, Shenzhen, PRC
Zip code for the
518067
registered address
Office address 8/F, Chiwan Petroleum Building, Shenzhen, PRC
Zip code for the office
518067
address
Internet website of the
http://www.szcwh.com
Company
Email address cwh@cndi.com
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2015 Semi-annual Report
2. About information disclosure and where this report is placed
The newspapers designated by the Company for information disclosure, the website designated by
CSRC for disclosing this report and the location where this report is placed did not change during
the reporting period.
Newspapers designated by the Company for information
Securities Times, Ta Kung Pao (HK)
disclosure
Internet website designated by CSRC for disclosing this
http://www.cninfo.com.cn
report
Where this report is placed Company Secretary Office
3. Changes in the registered information
The registration date and place of the Company, its business license No., taxation registration No.
and organizational code did not change during the reporting period. The said information can be
found in the 2014 Annual Report.
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2015 Semi-annual Report
Section III. Highlights of Accounting Data & Financial Indicators
I. Major accounting data and financial indicators
Unit: RMB Yuan
Item Jan.-Jun. 2015 Jan.-Jun. 2014 YoY +/-（％）
Operating revenues 880,788,008.78 875,981,241.59 0.55%
Net profit attributable to
241,977,372.34 235,338,598.71 2.82%
shareholders of the Company
Net profit attributable to
shareholders of the Company after 243,763,081.71 233,093,807.14 4.58%
extraordinary gains and losses
Net cash flows from operating
365,522,514.71 282,633,209.75 29.33%
activities
Basic EPS (RMB Yuan/share) 0.375 0.365 2.74%
Diluted EPS (RMB Yuan/share) 0.375 0.365 2.74%
Weighted average ROE (%) 5.76% 5.85% -0.09%
Item 30 Jun. 2015 31 Dec. 2014 +/-（％）
Total assets 6,711,610,325.63 6,935,824,199.68 -3.23%
Net assets attributable to
4,151,427,960.76 4,115,298,831.59 0.88%
shareholders of the Company
Number of the Company’s total shares in the trading day before disclosure:
Number of the Company’s total shares in the trading
644,763,730
day before disclosure
II. Differences between accounting data under domestic and overseas accounting standards
Unit: RMB Yuan
Net profit attributable to shareholders of Net assets attributable to shareholders of
the Company the Company
Jan.-Jun. 2015 Jan.-Jun. 2014 30 Jun. 2015 31 Dec. 2014
According to Chinese
241,977,372.34 235,338,598.71 4,151,427,960.76 4,115,298,831.59
accounting standards
According to international
and overseas accounting Inapplicable
standards
III. Items and amounts of extraordinary gains and losses
Unit: RMB Yuan
Item Amount
Gain/loss on the disposal of non-current assets 112,281.70
Government grants recognized in current gains and losses 338,012.74
Non-operating income and expense other than the above 466,751.63
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2015 Semi-annual Report
Less: Income tax effects 763,056.12
Minority interests effects 1,939,699.32
Total (1,785,709.37)
In the reporting period, the Company did not turn any item that should be considered as an
extraordinary gain/loss item according to the definition and examples in into a recurrent gain/loss item.
Section IV. Report of the Board of Directors
I. Overview
The Company is principally engaged in the handling, warehousing and transportation of containers
and bulk cargoes, as well as the provision of related services. We have 13 container and bulk cargo
berths in Chiwan Wharf in Shenzhen, 3 container berths in Mawan Wharf in Shenzhen and 5 bulk
cargo berths in Machong Wharf in Dongguan of Guangdong Province. We also have an investment
in Laizhou Wharf in Shandong Province.
In the reporting period, the global economy continued with its modest recovery and growth in
China’s economy slowed down to 7.0%. With sluggish demand, China’s total volume of foreign
trade dropped 6.9% from the same period of last year. Growth in the wharf industry further shrank.
The cargo throughput of China’s coastal wharfs above the designated size went up 1.6% year on
year, representing a decrease of 5.1 percentage points in growth. We achieved a cargo throughput of
31.956 million tons, a year-on-year increase of 3.7%, higher than the national average.
1. Container handling business
With falling freight rates due to the growing imbalance between global container shipping capacity
supply and demand, liner companies failed to achieve fundamental improvement in profitability. In
the reporting period, the container throughput of main wharfs in South China was almost the same
with that in the same period of last year. Affected by the slow recovery of the American and
European economies as well as the liner alliances’ adjustments to their shipping routes, we saw
more fluctuations in our container handling business which mainly relies on international transit. In
the reporting period, we achieved a container throughput of 2.316 million TEU, down 3.3% on the
year-on-year basis.
In the reporting period, we materialized a unified customs clearance and business model for Chiwan
Wharf and Mawan Wharf, which has significantly increased the efficiency. We also actively
attracted new shipping routes while keeping our main profitable shipping routes steady. By the end
of June 2015, we had a total of 49 international liner routes to work with, an increase of 9 routes
from the same period of last year. In the meantime, we made full use of our information service
platform—“Smart Wharf”—to strive to develop our barge service business, resulting in a solid
growth in the TEU volume of containers in this business.
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2015 Semi-annual Report
2. Bulk cargo handling business
We mainly handle imports of grain and feedstuff as well as chemical fertilizers for our bulk cargo
handling business. In the reporting period, China’s total imports of grain and feedstuff continued to
increase considerably with more diversified sources and the main increment from grain and
feedstuff varieties with no import quota limits. Meanwhile, the total imports of chemical fertilizers
witnessed a slight drop from the same period of last year.
Keeping a watchful eye on market hot trends, we achieved a remarket result in our efforts to expand
the imported grain and feedstuff handling business, with some growth in our stable share in the
imported grain and feedstuff handling market of the Pearl River Delta as well as relatively steady
rates. In the reporting period, we achieved a bulk cargo throughput of 8.758 million tons,
representing a year-on-year growth of 12.0%. To be specific, Chiwan Wharf achieved a bulk cargo
throughput of 3.356 million tons, an increase of 9.1% from the same period of last year due to the
effectively improved efficiency and business performance as a result of our great efforts for
resource optimization; and Machong Wharf achieved a bulk cargo throughput of 5.401 tons, up
13.8% year on year on the back of the strong performance of the Phase II Wharf and the
warehousing resources.
Business highlights of the Company are set out as follows:
Reporting period Same period of last year
Main business indicator YoY +/-%
(Jan.-Jun. 2015) (Jan.-Jun. 2014)
Total throughput (thousand tons) 31956 30821 3.7%
Among which:
2316 2395 -3.3%
Container throughput (thousand TEU)
Chiwan Wharf 1687 1775 -5.0%
Mawan Wharf (joint venture) 629 621 1.3%
Bulk cargo throughput (thousand tons) 8758 7823 12.0%
Chiwan Wharf 3356 3075 9.1%
Machong Wharf 5401 4748 13.8%
Hours charged for tow trucks (thousand 539 543 -0.7%
hours)
Hours charged for tugboats (hour) 15609 14581 7.1%
In the reporting period, we continued with our efforts in delicacy management, further improving
our business performance through optimizing our debt structure, introducing a contractor
competitive mechanism, the massive commercialization of our technical innovation results, the
innovation in our project management model, etc. Meanwhile, due to our effective control over the
controllable costs despite rising land rents and labor cost, our operating costs grew slower than our
business volume.
The global economy will still encounter various uncertainties in the second half of 2015. The
Chinese economy will be running steadily as a string of growth stabilization policies are unveiled,
though the situation of foreign trade is still severe. We will closely cooperate with the government
to expand the Tonggu Channel to cater for increasingly large ships. To deal with changes in the
liner market, we will vigorously seek for new shipping routes and cargo sources. We will also refine
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2015 Semi-annual Report
our client service to keep stability in our main cooperating shipping routes and business. In order to
keep a balance between resource allocation and business growth, we will try to maintain the steady
growth trend in our bulk cargo handling business and continue to push forward the construction of
warehousing facilities at the back of Machong Wharf as well as the upgrading of resources at
Chiwan Wharf. We will also enhance business solicitation, adjust our competitive strategy and keep
clients and rates relatively stable. With the purpose of increasing our business performance, we will
focus on the application of delicacy management tools, the innovation in our business model and
technique and energy saving & consumption reduction.
II. Main business analysis
Unit: RMB Yuan
Item Jan.-Jun. 2015 Jan.-Jun. 2014 YoY +/-% Main reasons for movements
Operating
880,788,008.78 875,981,241.59 0.55% -
revenues
Operating costs 463,427,511.59 462,666,123.14 0.16% -
Administrative
84,201,871.92 77,865,679.19 8.14% -
expenses
Financial
34,170,800.29 37,195,762.94 -8.13% -
expenses
Chiwan Container Terminal
Co., Ltd., one of the
Company’s controlled
Income tax subsidiaries, passed the hi-
34,458,531.16 53,240,327.00 -35.28%
expenses tech enterprise examination in
2015 and has thus been
entitled to a preferential
income tax rate of 15%.
Net cash flows
from operating 365,522,514.71 282,633,209.75 29.33% -
activities
The construction of the recent
Net cash flows Machong Wharf project was
from investing (12,068,746.10) (57,419,206.24) 78.98% basically completed and the
activities relevant fixed asset inputs
decreased.
Borrowings decreased and the
Net cash flows controlled subsidiary Chiwan
from financing (514,366,523.61) (158,429,813.22) -224.67% Container Terminal Co., Ltd.
activities paid dividends to minority
shareholders.
Net increase in
cash and cash (160,462,810.25) 67,291,599.59 -338.46% Due to the factors above.
equivalents
No major changes occurred to the profit structure or sources of the Company during the reporting
period.
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2015 Semi-annual Report
III. Breakdown of main business
Unit: RMB Yuan
Increase/decrea Increase/decrea
Increase/decrea
se of operating se of gross
se of operating
Gross profit revenues over profit rate over
Operating revenues Operating costs costs over the
rate (%) the same the same
same period of
period of last period of last
last year (%)
year (%) year (%)
Classified by industry:
Cargo handling 828,088,736.37 437,699,046.25 47.14% 0.37% 0.57% -0.23%
Classified by region:
Mainland
878,925,546.75 463,427,511.59 47.27% 0.61% 1.13% -0.56%
China
IV. Core competitiveness analysis
Important changes in our core competitiveness in the reporting period: In June 2015, we obtained
the acceptance inspection certificate from the Transport Commission of Shenzhen Municipality on
our container berth upgrading project at Chiwan Wharf and Mawan Wharf. In April 2015, the
Machong Phase II Wharf with a coastline of 675 meters was approved for business by the reply of
the Guangdong Provincial Government, and its provision of handling services for foreign trade
ships has normalized. In May, the Machong Phase I Wharf was approved by the reply of the
Transport Office of Guangdong Province to upgrade from 50,000-ton berths to conditional 70,000-
ton berths. In the meantime, Chiwan Wharf has initiated an upgrading project for Berth 7# and the
construction of mechanized horizontal warehouses at Machong Wharf advances steadily. The
aforesaid improvements in resources and capability will further strengthen our market
competitiveness and provide guarantee for the steady development of our wharf service business.
V. Investment analysis
1. Investments in equities of external parties
（1） Investments in external parties
The Company did not invest in any external party during the reporting period.
（2）Equity-holdings in financial enterprises
The Company did not have any equity-holding in any financial enterprise during the reporting
period.
（3）Securities investments
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2015 Semi-annual Report
Unit: RMB Yuan
Shareho Shareh
Variety Number of lding Number of olding Gain/loss
Initial
of Code of Name of shares held percent shares held percent Closing book for Accounti
investment Source of stock
securiti securities securities at period- age at at period- age at value reporting ng title
cost
es begin period- end period- period
begin end
Available Corporate shares
Ninghu
-for-sale allowed for
Stock 600377 Expressw 1,120,000 1,000,000 0.02% 1,000,000 0.02% 9,680,000 380,000
financial circulation after
ay
assets share reform
Available
Petro-
-for-sale
Stock 400032 chemical 3,500,000 780,000 0.26% 780,000 0.26% 382,200 - Corporate shares
financial
A1
assets
Available
Guang -for-sale
Stock 400009 27,500 20,000 0.02% 20,000 0.02% 17,000 - Corporate shares
Jian 1 financial
assets
Total 4,647,500 1,800,000 -- 1,800,000 -- 10,079,200 380,000 -- --
（4）Shareholdings in other listed companies
No such cases in the reporting period.
2. Wealth management entrustment, derivative investments and entrustment loans
（1）Wealth management entrustment
No such cases in the reporting period.
（2）Derivatives investment
No such cases in the reporting period.
（3）Entrustment loans
No such cases in the reporting period.
3. Use of raised funds
No such cases in the reporting period.
4. Analysis to main subsidiaries and shareholding companies
Unit: RMB Yuan
Main Registe
Company Company Operating Operating
Industry products/ser red Total assets Net assets Net profit
name variety revenues profit
vices capital
Chiwan
USD
Container Transpo Container
Subsidiary 95.3 1,933,342,685.54 1,613,813,942.28 373,974,452.10 139,405,069.79 139,373,231.82
Terminal rtation handling
million
Co., Ltd.
Shenzhen
Chiwan RMB
Transpo Container
Harbor Subsidiary 288.2 783,105,539.48 537,380,181.25 145,186,096.47 64,515,961.52 55,405,182.45
rtation handling
Container million
Co. Ltd.
Dongguan
Handling
Chiwan RMB
Transpo and storage
Wharf Subsidiary 450 992,647,748.35 663,307,573.68 139,526,952.33 41,964,712.17 36,768,241.63
rtation of bulk
Company million
cargos
Limited
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2015 Semi-annual Report
Handling
Dongguan
and RMB
Chiwan Transpo
Subsidiary warehousing 400 936,419,968.66 416,104,423.31 78,702,445.50 33,515,075.19 33,516,258.35
Terminal rtation
of bulk million
Co., Ltd.
cargoes
5. Significant projects of investments with non-raised funds
No such cases in the reporting period.
VI. Implementation of profit allocation during the reporting period
Pursuant to the guiding spirit of the Notice of CSRC on Further Implementing Matters Related to
Cash Dividends of Listed Companies, the Notice of CSRC Shenzhen Bureau on Fully
Implementing the Notice of CSRC on Further Implementing Matters Related to Cash Dividends of
Listed Companies (Shen-Zheng-Ju-Gong-Si-Zi (2012) No. 43), the Company has revised some
articles in its Articles of Association in relation to the profit distribution policy, which involves the
specific policy, the decision-making procedure and mechanism, the adjustment and implementation
of the profit distribution policy, profit distributed to foreign shareholders and other aspects (for the
revised Articles of Association of the Company, see www.cninfo.com.cn). The revised Articles of
Association of the Company was reviewed and approved on the 5th Special Session of the 7th Board
of Directors for 2012 on 3 Aug. 2012, and later on the 1st Special Shareholders’ General Meeting
for 2012 on 21 Aug. 2012. During the reporting period, the Company executed the profit allocation
policy in strict compliance with the revised Articles of Association, and it did not again alter the
profit allocation policy, especially the cash dividend policy.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of
Association and the resolution of the general Yes
meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and
Yes
mechanism
Independent directors fulfilled their
Yes
responsibilities and played their due role.
Minority shareholders have the chance to fully
express their opinion and desire and their legal Yes
rights and interests were fully protected.
In adjustment or alteration of the cash dividend
policy, the conditions and procedure were in Yes
compliance with regulations and transparent.
As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the
Company (without subsidiaries) for 2014 stood at RMB 268,153,919.27 and the cumulative
distributable profit at RMB 648,306,530.85.
1) According to the Company Law and the Articles of Association of the Company, the Company
may stop making statutory surplus reserve when its accumulative amount reaches 50% of the
registered capital. The accumulative statutory surplus reserve of the Company (without subsidiaries)
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2015 Semi-annual Report
stood at RMB 520,074,434.56 for 2014, equal to 80.66% of the registered capital. Therefore, the
Company did not draw surplus reserve from retained profit for 2014.
2) Based on the total 644,763,730 shares as at the end of 2014, a cash dividend of RMB 3.24 (tax
included) was to be distributed for every 10 shares, with a total of RMB 208,903,448.52 being
distributed.
After the aforesaid allocations, the retained profit of the Company (without subsidiaries) stood at
RMB 439,403,082.33.
Implementation of the said profit allocation plan was completed on 24 July 2015, with the book
closure date for A-shares and the last trading date for B-shares both on 21 July 2015 and the ex-
dividend date on 22 July 2015.
VII. Preplan for profit distribution and turning capital reserve into share capital for the
reporting period
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into
share capital for the reporting period.
VIII. Particulars about researches, visits and interviews received in this reporting period
Place of Way of Main discussion and materials
Time of reception Visitor type Visitor
reception reception provided by the Company
Telephone Basic operation situation of the
Company Individual
January-June 2015 communic Individual Company, investments made and its
Office investors
ation financial position
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2015 Semi-annual Report
Section V. Significant Events
I. Corporate governance
Ever since its establishment, the Company has been in strict compliance with the company law and
securities law, as well as relevant laws and regulations issued by CSRC. And it has timely
formulated and amended its relevant management rules according to the Code of Corporate
Governance for Listed Companies, which are conscientiously and carefully executed. An effective
system of internal control has thus taken shape in the Company.
In the reporting period, according to our business development and operational needs, we revised
the Working Rules for General Manager under the Company’s Articles of Association, which was
reviewed and approved at the Third Meeting of the Eighth Board of Directors for 2015 on 25 March
2015.
II. Significant lawsuits or arbitrations
No such cases in the reporting period.
III. Media’s queries
No such cases in the reporting period.
IV. Bankruptcy reorganization
No such cases in the reporting period.
V. Asset transactions
1. Purchase of assets
No such cases in the reporting period.
2. Sale of assets
No such cases in the reporting period.
3. Business combination
The “Proposal on the Company Absorbing Shenzhen Chiwan Terminal Co., Ltd. and Shenzhen
Chiwan Trans-Grains Terminal Limited” was reviewed and approved at the 5th Special Session of
the 7th Board of Directors for 2013 on 23 Apr. 2013 and later at the 2012 Annual Shareholders’
General Meeting on 21 May 2013, agreeing the Company to absorb Shenzhen Chiwan Terminal Co.,
Ltd. (“SCT”) and Shenzhen Chiwan Trans-Grains Terminal Limited (“Trans-Grains Terminal”) to
operate the bulk cargo handing business in Chiwan Wharf under unified management. After the
merge, Shenzhen Chiwan Terminal Co., Ltd. and Shenzhen Chiwan Trans-Grains Terminal Limited
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2015 Semi-annual Report
will be crossed off and the Company will become the main operating unit of the bulk cargo
handling business in Chiwan Port. For the relevant resolution announcements, see the
announcements (No. 2013-027 and 2013-034) disclosed on Securities Times, Ta Kung Pao (HK)
and www.cninfo.com.cn dated 24 Apr. 2013 and 22 May 2013.
In Nov. 2013, the Company received the “Reply of the Economy, Trade and Information
Commission of Shenzhen Municipality about Preliminary Approval to the Merge of Shenzhen
Chiwan Terminal Co., Ltd. into Shenzhen Chiwan Wharf Holdings Limited” (SJMXXZZ [2013]
No. 1883). And the relevant progress announcement (No. 2013-059) was disclosed on Securities
Times, Ta Kung Pao (HK) and www.cninfo.com.cn dated 22 Nov. 2013.
In Jan. 2014, the Company received the “Reply of the Economy, Trade and Information
Commission of Shenzhen Municipality about Approval to the Merger between Shenzhen Chiwan
Wharf Holdings Limited and Shenzhen Chiwan Terminal Co., Ltd.” (SJMXXZZ [2014] No. 109),
approving the combination of the two companies in the form of a merger. The Company survived
the merger; and SCT was dissolved in the merger and all its creditor’s rights, liabilities and
properties were assumed by the Company. After the merger, the total share capital and registered
capital of the Company remained the same. And the relevant announcement (No. 2014-005) was
disclosed on Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn dated 14 Feb. 2014.
In Feb. 2014, SCT canceled its registration with the Market Supervision Administration Bureau of
Shenzhen Municipality and received the “Enterprise Cancellation Notice” issued by the Bureau.
And the relevant announcement (No. 2014-007) was disclosed on Securities Times, Ta Kung Pao
(HK) and www.cninfo.com.cn dated 28 Feb. 2014.
On 24 Oct. 2014, the Company announced its receipt of the “Reply of the Economy, Trade and
Information Commission of Shenzhen Municipality about the Preliminarily Approval to the Merger
between Shenzhen Chiwan Wharf Holdings Limited and Shenzhen Chiwan Trans-Grains Terminal
Limited”. For details, see Announcement No. 2014-043 disclosed on Securities Times, Ta Kung
Pao (HK) and www.cninfo.com.cn.
On 17 Jan. 2015, the Company announced its receipt of the “Reply of the Economy, Trade and
Information Commission of Shenzhen Municipality about Approval to the Merger between
Shenzhen Chiwan Wharf Holdings Limited and Shenzhen Chiwan Trans-Grains Terminal Limited”
which approved the Shenzhen Chiwan Trans-Grains Terminal Limited to combine by merger. And
the Company was the surviving company while the Shenzhen Chiwan Trans-Grains Terminal
Limited dissolved as combined of which the creditor's rights, debts and property be inherited by
the Company. After the merger, the total share capital, registered capital and the operation scope
remained unchanged. For details, see Announcement No. 2015-002 disclosed on Securities Times,
Ta Kung Pao (HK) and www.cninfo.com.cn.
In Jan. 2015, the Shenzhen Chiwan Trans-Grains Terminal Limited had completed the cancellation
of registration formalities at Shenzhen Market Supervisory Authority and received the Enterprise
Cancellation Notice. The relevant announcement (No. 2015-006) was disclosed on Securities Times,
Ta Kung Pao (HK) and www.cninfo.com.cn dated 30 Jan. 2015.
VI. Implementation of equity incentive and its influence
The Company did not make or carry out any equity incentive plan during the reporting period.
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2015 Semi-annual Report
VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
Proportion
Relate Transacti Approved Obtainable
Type Content in the total
d Pricing Transaction on transactio Over market price for
Relati of the s of the amounts of Mode of Disclosure Disclosure
transa principl price (RMB amount n line approved the transaction
on transac transacti transactions settlement date index
ction e Yuan) (RMB (RMB line or not of the same kind
tion on of the same
party ’000) ’000) (RMB Yuan)
kind (%)
See
http://www.cni
Mutual Rent nfo.com.cn for
CND Shareh Land 27 March
Lease negotiat 31,962,834 31,962 83% 70,000 No payment 31,962,834 the relevant
Group older use fee 2015
ion by month announcement
(No. 2015-
020)
Total -- -- 31,962 -- -- -- -- -- -- --
2. Related-party transactions arising from acquisition and sale of assets
No such cases in the reporting period.
3. Related-party transactions arising from joint investment in external parties
No such cases in the reporting period.
4. Credits and liabilities with related parties
No such cases in the reporting period.
5. Other significant related-party transactions
Disclosure date of the Website where the interim
Title of the interim announcement
interim announcement announcement was disclosed
Announcement on Expected Routine See http://www.cninfo.com.cn for the
27 March 2015
Related-Party Transactions for 2015 relevant announcement (No. 2015-020)
VIII. Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
No such cases in the reporting period.
IX. Significant contracts and fulfillment thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
No such cases in the reporting period.
16
2015 Semi-annual Report
(2) Contracting
No such cases in the reporting period.
(3) Leasing
No such cases in the reporting period.
2. Guarantees provided by the Company
No such cases in the reporting period.
3. Other significant contracts
No such cases in the reporting period.
4. Other significant transactions
No such cases in the reporting period.
X. Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period, or such commitments carried down into the reporting period
Time of Period of
Commit Commitmen
Contents making commitme Fulfillment
ment t maker
commitment nt
CND Group had put forward the
Report of the Formulation and
Execution of the Equity Incentive
Plan of Shenzhen Chiwan Wharf
Holdings Limited in Mar. 2009 and
the Annual General Meeting of the
Company held in May 2009 had
reviewed and approved the report as
well as had agreed to authorize the
CND Group committed to formulate and Board of Directors to formulate and
execute the equity incentive plan through the execute the equity incentive plan at
entrusted Board of Directors by the Annual an appropriate time according to
General Meeting of Shenzhen Chiwan relevant laws and regulations.
according to the relevant laws and regulations In Jun. 2014, the Company contrasted
Commit at an appropriate time after the completion of the Trail Method of Executing the
ments of the equity division reform for strengthening the Equity Incentive Trail of the State
CND Group Apr. 2006 Standing
share share-holding confidence of the shareholders of Holding Listed Companies jointly
reform circulation stock, encouraging the enthusiasm issued by SASAC and Ministry of
of the core management level and core business Finance and the Equity Incentive
backbone of the Company as well as leading Management Method of Listed
the mutual unification between the interests of Companies (Trail) issued by CSRC,
the management level and the whole and through the special session
shareholders. discussion of the Board of Directors
of the Company, the equity incentive
plan of the Company could not be
formulated owning to the changes of
the policies and regulations as well as
the relevant conditions restriction, so
that the Company decided not to
formulate and execute the equity
incentive plan for the time being. The
Board of Directors will continue to
17
2015 Semi-annual Report
study as well as pay attention on the
relevant policies and regulations, and
will reconsider to formulate and
execute the equity incentive plan
depend on the actual situation of the
Company after the decision-making
process.
It is
promised
1. Commitments made by China Merchants
that the
Holdings (International) about share custody;
horizontal
2. Commitment made by China Merchants
China competitio
Holdings (International) about guaranteeing the
Merchants n issue will
independency of the Company;
Commit Holdings be solved
3. Commitment made by China Merchants 17 Sep. 2012 In the process of execution
ments (Internationa through
Holdings (International) about horizontal
made in l) Company ways such
competition; and
acquisiti Limited as asset
4. Commitment made by China Merchants
on report reorganizat
Holdings (International) about regulating
or in ion in the
related-party transactions
report on coming 3-5
changes years.
of equity 1. Commitment made by Malai Storage about
Whenever
guaranteeing the independency of the
Malai
Company;
Malai Storage
2. Commitment made by Malai Storage about 27 Dec. 2012 In the process of execution
Storage holds the
horizontal competition; and
Company’s
3. Commitment made by Malai Storage about
shares
regulating related-party transactions
CND Group irrevocably and unconditionally
agrees that if Chiwan Wharf suffers from any
loss, expense, liability, demanded
compensation or law suit due to any actual or
potential illegality or unenforceability in any 20 Mar. 2001;
CND Group land use agreement or relevant documents 18 Jun. 2003; Standing In the process of execution
signed or to be signed by CND Group or other 29 Sept. 2004
related problems, CND Group promises to give
Other
full immunity to the recipient party of the land
commit
use right and its inheritor and the recipient
ments
person regarding the aforesaid matters.
made to
If the Company cannot pay interest on time,
minority
pay principals upon maturity or is involved in
sharehol
any violation, it shall at least take the following Whenever
ders
measures: the
1. Not to distribute profit to shareholders; corporate
The
2. Suspend capital outlay projects such as 18 Oct. 2013 bond of In the process of execution
Company
significant outward investments or mergers; “13
3. Reduce or stop salaries and bonuses for Chiwan
directors and senior management staff; and 01” exists
4. Not to remove the persons held chiefly
responsible.
Executed
in time Yes
or not?
Specific
reason
for
failing to
fulfill the
commit N/A
ment and
plan for
the next
step (if
any)
18
2015 Semi-annual Report
XI. Engagement and disengagement of the CPAs firm
This semi-annual report has not been audited by a CPAs firm.
XII. Punishments and rectifications
No such cases in the reporting period.
XIII. Delisting risk due to violation of laws or regulations
No such cases in the reporting period.
XIV. Changes in the consolidation scope when compared with that of last year
Grossalan Investments Limited, a subsidiary of the Company registered in the British Virgin Islands,
has been deconsolidated in the reporting period. For details, see “Changes in the Consolidation
Scope”, Note (7) to the Consolidated Financial Statements in “Section VIII Financial Report”.
XV. Other significant events
In the reporting period, the Company disclosed the following significant events on Securities Times,
Ta Kung Pao (HK) and www.cninfo.com.cn:
Announcement
Title Date
No.
2015-001 Announcement on the Business Volume in December 2014 9 January 2015
Progress Announcement on the Company’s Absorption of Wholly-
2015-002 17 January 2015
Funded Subsidiary Shenzhen Chiwan Trans-Grains Terminal Limited
Announcement on Resolutions Made at the First Special Meeting of the
2015-003 30 January 2015
8th Board of Directors for 2015
2015-004 Notice of Convening the First General Meeting for 2015 30 January 2015
2015-005 Announcement on Supervisor Resignation 30 January 2015
Announcement on Completion of Commercial Registration
2015-006 Cancellation of Wholly-Funded Subsidiary Shenzhen Chiwan Trans- 30 January 2015
Grains Terminal Limited
2015-007 Announcement on the Business Volume in January 2015 10 February 2015
2015-008 Announcement on the Business Volume in February 2015 11 March 2015
Announcement on Resolutions Made at the Second Special Meeting of
2015-009 13 March 2015
the Eighth Board of Directors for 2015
First Indicative Announcement on Exercise of Issuer Redemption
2015-010 13 March 2015
Option on the 2011 Corporate Bonds (Phase I)
2015-011 Announcement on Director Resignation 14 March 2015
19
2015 Semi-annual Report
2015-012 Announcement on Name Change of Wholly-Funded Subsidiary 14 March 2015
Second Indicative Announcement on Exercise of Issuer Redemption
2015-013 17 March 2015
Option on the 2011 Corporate Bonds (Phase I)
Indicative Announcement on Convening the First General Meeting for
2015-014 18 March 2015
2015
Third Indicative Announcement on Exercise of Issuer Redemption
2015-015 19 March 2015
Option on the 2011 Corporate Bonds (Phase I)
Announcement on Resolutions Made at the First General Meeting for
2015-016 25 March 2015
2015
Announcement on Resolutions Made at the Third Meeting of the Eighth
2015-017 27 March 2015
Board of Directors
Announcement on Resolutions Made at the Third Meeting of the Eighth
2015-018 27 March 2015
Supervisory Committee
2015-019 Abstract of 2014 Annual Report 27 March 2015
Announcement on Expected Routine Related-Party Transactions for
2015-020 27 March 2015
2015
2015-021 Announcement on Accounting Policy Changes 27 March 2015
Announcement on Purchase of Bank Wealth Management Products
2015-022 27 March 2015
with the Company’s Own Idle Funds
Indicative Announcement on Issue of 2015 Phase I Short-term
2015-023 7 April 2015
Financing Bonds
2015-024 Announcement on the Business Volume in March 2015 10 April 2015
Announcement on Issue Results of 2015 Phase I Short-term Financing
2015-025 14 April 2015
Bonds
2015-026 Announcement on Share Trading Suspension due to Significant Event 23 April 2015
Announcement on Follow-up Rating Result of Corporate Bond “13
2015-027 24 April 2015
Chiwan 01”
Announcement on Resolutions Made at the Third Special Meeting of
2015-028 25 April 2015
the 8th Board of Directors for 2015
2015-029 Abstract of Report on First Quarter of 2015 25 April 2015
2015-030 Notice of Convening the 2014 Annual General Meeting 25 April 2015
Announcement on Redemption Result and Delisting of 2011 Corporate
2015-031 25 April 2015
Bonds (Phase I)
Progress Announcement on Share Trading Suspension due to
2015-032 30 April 2015
Significant Event
Progress Announcement on Share Trading Suspension due to
2015-033 8 May 2015
Significant Event
Progress Announcement on Share Trading Suspension due to
2015-034 15 May 2015
Significant Event
Announcement on Resignation of Independent Director and Company
2015-035 19 May 2015
Secretary
20
2015 Semi-annual Report
2015-036 Indicative Notice of Convening the 2014 Annual General Meeting 22 May 2015
Announcement on Share Trading Suspension due to Material Asset
2015-037 22 May 2015
Reorganization
2015-038 Announcement on the Business Volume in April 2015 23 May 2015
Progress Announcement on Share Trading Suspension due to Material
2015-039 29 May 2015
Asset Reorganization
Announcement on Resolutions Made at the 2014 Annual General
2015-040 30 May 2015
Meeting
Announcement on Resolutions Made at the Fourth Special Meeting of
2015-041 30 May 2015
the 8th Board of Directors for 2015
Announcement on Resolutions Made at the Second Special Meeting of
2015-042 30 May 2015
the 8th Supervisory Committee for 2015
Announcement on Super-short-term Financing Bonds Approved for
2015-043 5 June 2015
Registration
Progress Announcement on Share Trading Suspension due to Material
2015-044 5 June 2015
Asset Reorganization
2015-045 Announcement on the Business Volume in May 2015 12 June 2015
Progress Announcement on Share Trading Suspension due to Material
2015-046 12 June 2015
Asset Reorganization
Indicative Announcement on Issue of 2015 Phase I Super-short-term
2015-047 15 June 2015
Financing Bonds
Announcement on Application for Continuous Share Trading
2015-048 Suspension upon Expiration of Share Trading Suspension due to 19 June 2015
Reorganization in Planning
Announcement on Issue Results of 2015 Phase I Super-short-term
2015-049 19 June 2015
Financing Bonds
Progress Announcement on Share Trading Suspension due to Material
2015-050 26 June 2015
Asset Reorganization
XVI. Internal control progress
Pursuant to the “Internal Control Rules for Enterprises” and the mating guidelines, the Company
officially implemented internal control, with details as follows:
1. The Company updated the name list of the members of internal control task groups. The
chairman of the board was the head of the internal control project, with divisional leaders and
departmental leaders as the members for the internal control steering committee. At the Company
level, important professionals of all functional departments were the members for the task group. At
the level of a subsidiary, the task group was headed by the general manager of the subsidiary, with
important professionals in the subsidiary as the members for the task group.
2. The work plan for internal control of 2015 was worked out.
3. The subjects and internal control processes included in the internal control improvement task for
2015 were determined. According to its own business characteristics and importance and based on
the internal control process improvement results of the previous years, subjects included in the
internal control improvement task for 2015 were: the Company, Chiwan Container Terminal Co.,
Ltd., Shenzhen Chiwan Harbor Container Co. Ltd., Dongguan Chiwan Wharf Company Limited
21
2015 Semi-annual Report
and Dongguan Chiwan Terminal Company Limited. Internal control processes included in the
internal control improvement and self-evaluation task for 2015 were: the organizational structure,
development strategy, human resources, social responsibilities, corporate culture, capital operation,
procurement, asset management, marketing, R&D, engineering projects, guarantees, outsourcing,
financial reporting, overall budget, contract management, internal information transmission and the
information system.
4. Work flow charts were sent down and work schedules were confirmed.
5. External and internal trainings were organized for members of the internal control task groups.
6. The internal control task groups of the Headquarters and the subsidiaries are reviewing the flow
chart risk assessment of last year and redescribe work flows within the internal control
improvement scope according to business changes this year.
As reviewed and approved at the Third Meeting of the Eighth Board of Directors on 25 March 2015
and later at the 2014 Annual Shareholders’ General Meeting on 29 May 2015, Deloitte Touche
Tohmatsu Certified Public Accountants LLP has been hired as the internal control auditor for the
Company for 2015.
In line with the schedule for the internal control improvement plan for 2015, the Company has
finished all the preparation work. The internal control project is right on schedule, with no
derivation or delay.
22
2015 Semi-annual Report
Section VI. Changes in Shares & Particulars about Shareholders
I. Changes in shares
Unit: share
Before the change Increase/decrease (+, -) After the change
Capital
ization
Percent New Bonus Percenta
Number of Other Subtotal Number
age shares shares ge
capital
reserve
367,401 0.06% 0 0 367,401 0.06%
I. Restricted shares
1. Shares held by the
State
2. Share held by state-
owned corporations
3. Shares held by other
367,401 0.06% 0 0 367,401 0.06%
domestic investors
Among which: Shares
held by domestic
corporations
Shares held by
domestic natural 367,401 0.06% 0 0 367,401 0.06%
persons
4. Shares held by
foreign investors
Among which: Shares
held by foreign
corporations
Shares held by foreign
natural persons
II. Non-restricted
644,396,329 99.94% 0 0 644,396,329 99.94%
shares
1. Renminbi ordinary
464,867,324 72.10% 0 0 464,867,324 72.10%
shares
2. Domestically listed
179,529,005 27.84% 0 0 179,529,005 27.84%
foreign shares
3. Overseas listed
foreign shares
4. Others
III. Total shares 644,763,730 100% 644,763,730 100%
23
2015 Semi-annual Report
II. Total number of shareholders and their shareholdings
Unit: share
Total number of preferred
Total number of
35,935 shareholders, including share holders who had
shareholders at the
26,373 A-share holders and resumed their voting right at 0
end of the reporting
9,562 B-share holders the end of the reporting
period
period (if any)
Shareholdings of top ten shareholders (all being non-restricted share holders)
Number of
Percent Increase/decrea Shares Type of
non-restricted
Nature of age of se in the pledged or shares
Name of shareholder shares held at
shareholder shareho reporting frozen (A, B, H
the period-
lding period (share) or other)
end
CHINA NANSHAN
32.52% 0 209,687,067 0 A share
DEVELOPMENT (GROUP) INC.
SHENZHEN MALAI STORAGE
25% 0 161,190,933 0 A share
CO., LTD.
KEEN FIELD ENTERPRISES Foreign
8.58% 0 55,314,208 0 B share
LIMITED shareholder
CMBLSA RE FTIF TEMPLETON Foreign
7.43% 0 47,914,954 Unknown B share
ASIAN GRW FD GTI 5496 shareholder
DEUTSCHE BANK Foreign
0.62% 1,150,748 3,996,830 Unknown A share
AKTIENGESELLSCHAFT shareholder
CMBNA/STICHTING PENS FND Foreign
0.54% 0 3,463,503 Unknown B share
ABP shareholder
Foreign
GIC PRIVATE LIMITED 0.52% 0 3,360,777 Unknown B share
shareholder
TEMPLETON ASIAN GROWTH Foreign
0.41% 0 2,657,852 Unknown B share
FUND shareholder
BBH A/C VANGUARD EMERGING Foreign
0.40% 0 2,595,918 Unknown B share
MARKETS STOCK INDEX FUND shareholder
KUMPULAN WANG PERSARAAN Foreign
0.37% 0 2,368,067 Unknown B share
(DIPERBADANKAN) shareholder
China Merchants Holdings (International) Company Limited
was a shareholder of China Nanshan Development (Group)
Inc., Shenzhen Malai Storage Co., Ltd. was a wholly-funded
Explanation on associated relationship or/and subsidiary of China Merchants Holdings (International)
persons acting in concert among the above- Company Limited, and Keen Field Enterprises Limited was
mentioned shareholders: also a wholly-funded subsidiary of China Merchants Holdings
(International) Company Limited. Other than that, the
Company does not know whether the other non-restricted
shareholders are related parties or not.
None of the top ten shareholders of the Company carried out any agreed buy-back in the reporting
period.
III. Change of the controlling shareholder or the actual controller
No such cases in the reporting period.
24
2015 Semi-annual Report
IV. Any shareholding increase plan proposed or implemented by any shareholder or its act-
in-concert party during the reporting period
No such cases in the reporting period to the best knowledge of the Company.
25
2015 Semi-annual Report
Section VII. Directors, Supervisors & Senior Management Staff
I. Changes in shareholdings of directors, supervisors and senior management staff
No changes occurred to the shareholdings of the Company’s directors, supervisors or senior
management staff. See the 2014 Annual Report for details.
II. Changes in directors, supervisors and senior management staff
Name Position Type Date Reason
Chairman of the
Mr. Yu Liming Supervisory Outgoing 29 January 2015 Change of job
Committee
Mr. Zhang Rizhong Director Outgoing 13 March 2015 Change of job
Mr. Deng Weidong Director Outgoing 13 March 2015 Change of job
Independent
Mr. Yin Kesheng Outgoing 18 May 2015 Personal reasons
Director
Company
Ms. Bu Dan Outgoing 18 May 2015 Personal reasons
Secretary
Mr. Yu Shixin Director Elected 29 May 2015 -
Mr. Ma Yong Director Elected 29 May 2015 -
Mr. Zhang Rizhong Supervisor Elected 29 May 2015 -
Chairman of the
Mr. Zhang Rizhong Supervisory Elected 29 May 2015 -
Committee
26
2015 Semi-annual Report
Section VIII. Financial Report
I. Auditor’s report
The semi-annual financial report has not been audited by a CPAs firm.
II. Financial statements (see attached)
Section IX. Documents Available for Reference
I. 2015 Semi-Annual Report carrying the signature of Chairman of the Board;
II. 2015 Semi-Annual Financial Report carrying the signatures of the Company’s Legal
Representative, Chief Financial Officer and Financial Manager; and
III. Original copies of all documents and public notices thereof disclosed during the reporting
period on Securities Times and Ta Kung Pao.
For and on behalf of the Board
Zheng Shaoping
Chairman
Shenzhen Chiwan Wharf Holdings Limited
Dated 27 August 2015
27
SHENZHEN CHIWAN
WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
Contents Pages
The Company and Consolidated balance sheets 1-2
The Company and Consolidated income statements 3-4
The Company and Consolidated cash flow statements 5-6
The Company and Consolidated statements of changes in
shareholders' equity 7-8
Notes to the financial statements 9 - 103
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
AT 30 JUNE 2015
Consolidated Balance Sheet
Unit: RMB
LIABILITIES AND
ASSETS Notes 30 Jun. 2015 31 Dec. 2014 SHAREHOLDERS' EQUITY Notes 30 Jun. 2015 31 Dec. 2014
Current Assets: Current Liabilities:
Currency funds (VI)1 308,172,676.22 468,635,486.47 Short-term borrowings (VI)21 133,294,087.68 -
Notes receivable (VI)2 - 2,500,000.00 Accounts payable (VI)22 79,898,367.91 77,447,853.13
Accounts receivable (VI)3 232,985,841.73 203,641,944.62 Advances (VI)23 7,036,209.89 31,818,775.21
Prepayments (VI)4 941,661.40 1,984,932.73 Employee benefits payable (VI)24 57,158,066.69 69,425,249.36
Interest receivable (VI)5 56,147.20 183,213.50 Taxes payable (VI)25 42,110,345.29 66,374,211.86
Dividends receivable (VI)6 380,000.00 - Interest payable (VI)26 23,147,210.76 33,775,342.43
Other receivables (VI)7 40,805,056.79 42,321,002.73 Dividends payable (VI)27 208,903,448.33 199,830,762.29
Inventories (VI)8 19,358,609.72 19,090,168.61 Other payables (VI)28 85,912,500.32 85,558,954.41
Other current assets (VI)9 11,432,546.10 16,893,412.98 Non-current liabilities due within one year (VI)29 5,011,361.68 4,997,419.52
Total current assets 614,132,539.16 755,250,161.64 Other current liabilities (VI)30 500,000,000.00 400,000,000.00
Non-current Assets: Total current liabilities 1,142,471,598.55 969,228,568.21
Available-for-sale financial assets (VI)10 23,589,200.00 21,209,200.00 Non-current Liabilities:
Long-term equity investments (VI)11 1,511,009,595.85 1,493,340,275.05 Bonds payable (VI)31 497,361,095.91 995,110,137.02
Investment property (VI)12 33,494,572.86 31,031,939.45 Special payables (VI)32 45,127,669.50 47,002,997.66
Fixed assets (VI)13 3,223,380,389.13 3,319,843,271.66 Deferred income (VI)33 45,234,200.09 47,337,896.36
Construction in progress (VI)14 51,922,078.91 34,582,369.45 Deferred tax liabilities (VI)18 2,140,000.00 1,545,000.00
Intangible assets (VI)15 1,065,959,868.19 950,021,585.10 Total non-current liabilities 589,862,965.50 1,090,996,031.04
Goodwill (VI)16 10,858,898.17 10,858,898.17 TOTAL LIABILITIES 1,732,334,564.05 2,060,224,599.25
Long-term prepaid expenses (VI)17 56,699,745.94 58,077,245.85 SHAREHOLDERS' EQUITY:
Deferred tax assets (VI)18 11,112,385.98 26,941,859.72 Share capital (VI)34 644,763,730.00 644,763,730.00
Other non-current assets (VI)19 109,451,051.44 234,667,393.59 Capital reserve (VI)35 162,698,555.65 162,698,555.65
Total non-current assets 6,097,477,786.47 6,180,574,038.04 Other Comprehensive Income (VI)36 (7,192,146.43) (8,977,146.43)
Special reserve (VI)37 3,489,982.87 2,219,777.52
Surplus reserve (VI)38 520,074,434.56 520,074,434.56
Unappropriated profit (VI)39 2,827,593,404.11 2,794,519,480.29
Total shareholders' equity attributable to equity
4,151,427,960.76 4,115,298,831.59
holders of the parent
Minority interests 827,847,800.82 760,300,768.84
TOTAL SHAREHOLDERS' EQUITY: 4,979,275,761.58 4,875,599,600.43
TOTAL LIABILITIES AND
TOTAL ASSETS 6,711,610,325.63 6,935,824,199.68 6,711,610,325.63 6,935,824,199.68
SHAREHOLDERS' EQUITY
The accompanying notes form an integral part of the financial statements.
The financial statements on pages 1 to 103 were signed by the following:
Legal Representative：Zheng Shaoping
Chief Financial Officer：Zhang Fang
Head of Accounting Department：Li Li
-1-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
AT 30 JUNE 2015
Balance Sheet of the Company
Unit: RMB
LIABILITIES AND
ASSETS Notes 30 Jun. 2015 31 Dec. 2014 SHAREHOLDERS' EQUITY Notes 30 Jun. 2015 31 Dec. 2014
Current Assets: Current Liabilities:
Currency funds 123,860,697.56 281,427,034.32 Accounts payable 15,827,428.83 14,948,575.64
Accounts receivable (XV)1 32,375,956.46 12,114,724.37 Advances 2,272,387.94 1,214,888.00
Prepayments 175,000.00 175,000.00 Employee benefits payable 38,445,002.50 41,375,574.26
Interest receivable - 152,533.34 Taxes payable 3,281,814.67 359,758.06
Dividends receivable 109,185,886.23 218,805,886.23 Interest payable 24,115,957.00 36,181,574.83
Other receivables (XV)2 758,756,824.96 826,175,209.04 dividend payable 208,903,448.52
Inventories 1,104,495.13 824,171.90 Other payables 318,643,413.18 266,554,498.30
Other current assets 271,504.80 98,303.47 Other current liabilities 500,000,000.00 400,000,000.00
Total current assets 1,025,730,365.14 1,339,772,862.67 Total current liabilities 1,111,489,452.64 760,634,869.09
Non-current Assets: Non-current Liabilities:
Available-for-sale financial assets 23,589,200.00 21,209,200.00 Bonds payable 497,361,095.91 995,110,137.02
Long-term receivables 11,004,284.75 11,004,284.75 Deferred tax liabilities 2,140,000.00 1,545,000.00
Long-term equity investments (XV)3 2,122,566,265.60 2,124,318,151.59 Total non-current liabilities 499,501,095.91 996,655,137.02
Investment property 23,207,001.64 23,668,903.59 TOTAL LIABILITIES 1,610,990,548.55 1,757,290,006.11
Fixed assets 177,447,295.39 184,439,928.48 SHAREHOLDERS' EQUITY
Construction in progress 4,258,473.11 3,621,969.65 Share capital 644,763,730.00 644,763,730.00
Intangible assets 65,078,678.84 66,559,896.74 Capital reserve 204,296,719.24 204,296,719.24
Long-term prepaid expenses 4,494,416.16 4,871,223.29 Other Comprehensive Income 6,520,000.00 4,735,000.00
Total non-current assets 2,431,645,615.49 2,439,693,558.09 Special reserve 599,960.67 -
Surplus reserve 520,074,434.56 520,074,434.56
Unappropriated profit 470,130,587.61 648,306,530.85
TOTAL SHAREHOLDERS'
1,846,385,432.08 2,022,176,414.65
EQUITY
TOTAL LIABILITIES AND
TOTAL ASSETS 3,457,375,980.63 3,779,466,420.76 3,457,375,980.63 3,779,466,420.76
SHAREHOLDERS' EQUITY
The accompanying notes form an integral part of the financial statements.
-2-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR SIX MONTHS ENDED 30 JUNE 2015
Consolidated Income Statement
Unit: RMB
ITEM Notes Jan.-Jun. 2015 Jan.-Jun. 2014
I. Revenue 880,788,008.78 875,981,241.59
Including: Operating income (VI)40 880,788,008.78 875,981,241.59
Less: Operating costs (VI)40 463,427,511.59 462,666,123.14
Business taxes and surcharges (VI)41 3,917,496.88 3,795,898.11
General and administrative expenses (VI)42 84,201,871.92 77,865,679.19
Financial expenses (VI)43 34,170,800.29 37,195,762.94
Impairment losses of assets (VI)44 153,277.43 752,168.91
Add: Investment income (VI)45 48,834,997.32 44,428,745.69
Including: Income from investments in associates
(VI)45 48,454,997.32 42,846,690.90
and joint ventures
II. Operating profit 343,752,047.99 338,134,354.99
Add: Non-operating income (VI)46 1,012,630.77 4,605,897.52
Including: Gains from disposal of non-current assets (VI)46 166,790.00 -
Less: Non-operating expenses (VI)47 95,584.70 93,766.65
Including: Losses from disposal of non-current assets (VI)47 54,508.30 74,463.56
III. Gross profit 344,669,094.06 342,646,485.86
Less: Income tax expenses (VI)48 34,458,531.16 53,240,327.00
IV. Net profit 310,210,562.90 289,406,158.86
Net profit attributable to shareholders of the parent 241,977,372.34 235,338,598.71
Profit or loss attributable to minority shareholders 68,233,190.56 54,067,560.15
V. Amount of Other Comprehensive Net Income After Tax: (VI)49 1,785,000.00 (29,576.94)
Amount of other comprehensive net income after tax attributable
1,785,000.00 (29,576.94)
to equity holders of the parent
(I) Other comprehensive income that will not be reclassified
- -
subsequently to profit or loss
(i) Change as a result of remeasurement of the net defined
- -
benefit plan liability or asset
(ii) Share of other comprehensive income of the investee under
the equity method that will not be reclassified to profit or - -
loss
(II) Other comprehensive income that will be reclassified
1,785,000.00 (29,576.94)
subsequently to profit or loss
(i) Share of other comprehensive income of the investee under
- -
the equity method that will be reclassified to profit or loss
(ii) Gains or losses on changes in fair value of available-for-
1,785,000.00 (30,000.00)
sale financial assets
(iii) Translation differences of financial statements denominated
- 423.06
in foreign currencies
Amount of other comprehensive net income after tax attributable
- -
to minority shareholders
VI. Total comprehensive income attributable to: 311,995,562.90 289,376,581.92
Shareholders of the parent 243,762,372.34 235,309,021.77
Minority shareholders 68,233,190.56 54,067,560.15
VII. Earnings per share:
(I) Basic earnings per share 0.375 0.365
(II) Diluted earnings per share 0.375 0.365
The accompanying notes form an integral part of the financial statements.
-3-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR SIX MONTHS ENDED 30 JUNE 2015
Income Statement of the Company
Unit: RMB
ITEM Notes Jan.-Jun. 2015 Jan.-Jun. 2014
I. Revenue (XV)4 127,147,838.62 109,434,020.21
Less: Operating costs (XV)4 69,660,728.99 83,646,144.42
Business taxes and surcharges 2,555,308.33 2,488,858.22
General and administrative expenses 36,261,079.80 29,956,969.45
Financial expenses 17,668,038.66 14,516,111.20
Impairment loss of assets - -
Add: Investment income (XV)5 29,413,790.50 21,214,832.83
Including: Income from investments in associates
(XV)5 29,033,790.50 19,632,778.04
and joint ventures
II. Operating profit 30,416,473.34 40,769.75
Add: Non-operating income 323,108.34 42,486.53
Including: Gains from disposal of non-current assets 166,790.00 -
Less: Non-operating expenses 12,076.40 2,424.22
Including: Losses from disposal of non-current assets - 2,374.22
III. Gross profit 30,727,505.28 80,832.06
Less: Income tax expenses - 3,282,922.15
IV. Net profit 30,727,505.28 (3,202,090.09)
V. Amount of Other Comprehensive Net Income After Tax: 1,785,000.00 (30,000.00)
(I) Other comprehensive income that will not be
reclassified subsequently to profit or loss
(i) Change as a result of remeasurement of the net
defined benefit plan liability or asset
(ii) Share of other comprehensive income of the investee
under the equity method that will not be reclassified to
profit or loss
(II) Other comprehensive income that will be reclassified
1,785,000.00 (30,000.00)
subsequently to profit or loss
(i) Share of other comprehensive income of the investee
under the equity method that will be reclassified to - -
profit or loss
(ii) Gains or losses on changes in fair value of available-
1,785,000.00 (30,000.00)
for-sale financial assets
(iii) Translation differences of financial statements
- -
denominated in foreign currencies
VI. Total comprehensive income 32,512,505.28 (3,232,090.09)
The accompanying notes form an integral part of the financial statements.
-4-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR SIX MONTHS ENDED 30 JUNE 2015
Consolidated Cash Flow Statement
Unit: RMB
ITEM Notes Jan.-Jun. 2015 Jan.-Jun. 2014
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 845,675,647.07 829,743,109.26
Other cash receipts relating to operating activities (VI)51(1) 16,046,584.93 15,211,286.07
Sub-total of cash inflows 861,722,232.00 844,954,395.33
Cash payments for goods purchased and services received 237,838,796.37 279,171,309.61
Cash payments to and on behalf of employees 176,748,169.75 166,096,320.88
Payments of all types of taxes 63,929,640.40 79,061,745.05
Other cash payments relating to operating activities (VI)51(2) 17,683,110.77 37,991,810.04
Sub-total of cash outflows 496,199,717.29 562,321,185.58
Net Cash Flows from Operating Activities (VI)52(1) 365,522,514.71 282,633,209.75
II. Cash Flows from Investing Activities:
Cash receipts from investments income 30,785,676.52 20,526,225.41
Net cash receipts from disposal of fixed assets, intangible assets
229,408.50 -
and other long-term assets
Sub-total of cash inflows 31,015,085.02 20,526,225.41
Cash payments to acquire or construct fixed assets, intangible
43,083,831.12 77,945,431.65
assets and other long-term assets
Sub-total of cash outflows 43,083,831.12 77,945,431.65
Net Cash Flows from Investing Activities (12,068,746.10) (57,419,206.24)
III. Cash Flows from Financing Activities:
Cash receipts from borrowings 133,294,087.68 436,590,000.00
Cash receipts from issue of bonds 499,000,000.00 398,800,000.00
Sub-total of cash inflows 632,294,087.68 835,390,000.00
Cash repayments of borrowings 900,000,000.00 936,590,000.00
Cash payments for distribution of dividends or profit or interest 246,532,314.98 57,028,389.22
Including: Payments for distribution of dividends or profit to minorities 199,874,053.12 -
Other cash payments relating to financing activities (VI)51(3) 128,296.31 201,424.00
Sub-total of cash outflows 1,146,660,611.29 993,819,813.22
Net Cash Flows from Financing Activities (514,366,523.61) (158,429,813.22)
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash
449,944.75 507,409.30
Equivalents
V. Net Increase in Cash and Cash Equivalents (160,462,810.25) 67,291,599.59
Add: Opening balance of Cash and Cash Equivalents (VI)52(2) 468,635,486.47 715,539,516.48
VI. Closing Balance of Cash and Cash Equivalents (VI)52(2) 308,172,676.22 782,831,116.07
The accompanying notes form an integral part of the financial statements.
-5-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR SIX MONTHS ENDED 30 JUNE 2015
Cash Flow Statement of the Company
Unit: RMB
ITEM Notes Jan.-Jun. 2015 Jan.-Jun. 2014
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 114,925,818.68 111,374,977.13
Other cash receipts relating to operating activities 571,999,822.81 505,306,823.76
Sub-total of cash inflows 686,925,641.49 616,681,800.89
Cash payments for goods purchased and services received 30,481,597.43 48,039,436.15
Cash payments to and on behalf of employees 63,956,603.14 57,196,202.74
Payments of all types of taxes 7,002,326.88 5,354,354.96
Other cash payments relating to operating activities 436,136,465.42 226,206,469.30
Sub-total of cash outflows 537,576,992.87 336,796,463.15
Net Cash Flows from Operating Activities (XV)8 149,348,648.62 279,885,337.74
II. Cash Flows from Investing Activities:
Cash receipts from investments income 140,785,676.52 17,188,296.41
Net cash receipts from disposal of fixed assets, intangible assets
96,842.47 -
and other long-term assets
Sub-total of cash inflows 140,882,518.99 17,188,296.41
Cash payments to acquire or construct fixed assets,
373,900.00 698,229.50
intangible assets and other long-term assets
Sub-total of cash outflows 373,900.00 698,229.50
Net Cash Flows from Investing Activities 140,508,618.99 16,490,066.91
III. Cash Flows from Financing Activities:
Cash receipts from issue of bonds 499,000,000.00 398,800,000.00
Sub-total of cash inflows 499,000,000.00 398,800,000.00
Cash repayments of borrowings 900,000,000.00 500,000,000.00
Cash payments for distribution of dividends or profit or interest 46,400,000.00 49,400,000.00
Other cash payments relating to financing activities 128,296.31 201,424.00
Sub-total of cash outflows 946,528,296.31 549,601,424.00
Net Cash Flows from Financing Activities (447,528,296.31) (150,801,424.00)
IV. Effect of Foreign Exchange Rate Changes on Cash
104,691.94 450,165.92
and Cash Equivalents
V. Net Increase in Cash and Cash Equivalents (157,566,336.76) 146,024,146.57
Add: Opening balance of Cash and Cash Equivalents (XV)8 281,427,034.32 465,329,241.75
VI. Closing Balance of Cash and Cash Equivalents (XV)8 123,860,697.56 611,353,388.32
The accompanying notes form an integral part of the financial statements.
-6-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR SIX MONTHS ENDED 30 JUNE 2015
Consolidated Statement of Changes in Shareholders' Equity
Unit: RMB
Amount of Jan.-Jun.2015 Amount of last year
Attributable to shareholders of the parent Attributable to shareholders of the parent
Other Total Other Total
comprehensive Special Unappropriated Minority shareholders' comprehensive Special Unappropriated Minority shareholders'
ITEM Share capital Capital reserve income reserve Surplus reserve profit Others interests equity Share capital Capital reserve income reserve Surplus reserve profit Others interests equity
I. Closing balance of the preceding year 644,763,730.00 162,698,555.65 (8,977,146.43) 2,219,777.52 520,074,434.56 2,794,519,480.29 - 760,300,768.84 4,875,599,600.43 644,763,730.00 166,143,555.65 - 2,194,178.40 483,685,708.52 2,664,771,789.70 (13,712,569.50) 780,229,789.10 4,728,076,181.87
Add: Changes in accounting policies - - - - - - - - - - (3,445,000.00) (10,267,569.50) - - - 13,712,569.50 - -
Corrections of prior period errors - - - - - - - - - - - - - - - - - -
Others - - - - - - - - - - - - - - - - - -
II. Opening balance of the year 644,763,730.00 162,698,555.65 (8,977,146.43) 2,219,777.52 520,074,434.56 2,794,519,480.29 - 760,300,768.84 4,875,599,600.43 644,763,730.00 162,698,555.65 (10,267,569.50) 2,194,178.40 483,685,708.52 2,664,771,789.70 - 780,229,789.10 4,728,076,181.87
III. Changes for the year - - 1,785,000.00 1,270,205.35 - 33,073,923.82 - 67,547,031.98 103,676,161.15 - - 1,290,423.07 25,599.12 36,388,726.04 129,747,690.59 - (19,929,020.26) 147,523,418.56
(I) Total comprehensive income - - 1,785,000.00 - - 241,977,372.34 - 68,233,190.56 311,995,562.90 - - 1,290,423.07 - - 417,594,271.33 - 112,196,228.61 531,080,923.01
(II) Contributions and reduction in capital - - - - - - - - - - - - - - - - - -
1. Capital contribution from shareholders - - - - - - - - - - - - - - - - - -
2. Share-based payment recognised in
- - - - - - - - - - - - - - - - - -
shareholders' equity
3. Others - - - - - - - - - - - - - - - - - -
(III) Profit distribution - - - - - (208,903,448.52) - - (208,903,448.52) - - - - 36,388,726.04 (287,846,580.74) - (132,168,078.54) (383,625,933.24)
1. Transfer to surplus reserve - - - - - - - - - - - - - 36,388,726.04 (36,388,726.04) - - -
2. Transfer to general reserve - - - - - - - - - - - - - - - - - -
3. Distributions to shareholders - - - - - (208,903,448.52) - - (208,903,448.52) - - - - - (251,457,854.70) - (132,168,078.54) (383,625,933.24)
4. Others - - - - - - - - - - - - - - - - - -
(IV) Transfers within shareholders' equity - - - - - - - - - - - - - - - - - -
1. Capitalisation of capital reserve - - - - - - - - - - - - - - - - - -
2. Capitalisation of surplus reserve - - - - - - - - - - - - - - - - - -
3. Loss made up by surplus reserve - - - - - - - - - - - - - - - - - -
4. Others - - - - - - - - - - - - - - - - - -
(V) Special reserve - - - 1,270,205.35 - - - (686,158.58) 584,046.77 - - - 25,599.12 - - - 42,829.67 68,428.79
1. Withdrawn in the period - - - 7,623,302.62 - - - 1,995,959.24 9,619,261.86 - - - 15,335,522.96 - - - 4,177,359.95 19,512,882.91
2. Utilized in the period - - - (6,353,097.27) - - - (2,682,117.82) (9,035,215.09) - - - (15,309,923.84) - - - (4,134,530.28) (19,444,454.12)
(VI) Others - - - - - - - - - - - - - - - - - -
IV. Closing balance of the year 644,763,730.00 162,698,555.65 (7,192,146.43) 3,489,982.87 520,074,434.56 2,827,593,404.11 - 827,847,800.82 4,979,275,761.58 644,763,730.00 162,698,555.65 (8,977,146.43) 2,219,777.52 520,074,434.56 2,794,519,480.29 - 760,300,768.84 4,875,599,600.43
The accompanying notes form an integral part of the financial statements.
-7-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR SIX MONTHS ENDED 30 JUNE 2015
Statement of Changes in Shareholders' Equity of the Company
Unit: RMB
Amount of Jan.-Jun.2015 Amount of last year
Other Total Other Total
Capital comprehensive Special Surplus Unappropriated shareholders' comprehensive Unappropriated shareholders'
ITEM Share capital reserve income reserve reserve profit equity Share capital Capital reserve income Special reserve Surplus reserve profit equity
I. Closing balance of the preceding year 644,763,730.00 204,296,719.24 4,735,000.00 - 520,074,434.56 648,306,530.85 2,022,176,414.65 644,763,730.00 153,355,827.18 - 120,437.30 483,685,708.52 667,999,192.32 1,949,924,895.32
Add: Changes in accounting policies - - - - - - - - (3,445,000.00) 3,445,000.00 - - - -
Corrections of prior period errors - - - - - - - - - - - - - -
Others - - - - - - - - - - - - - -
II. Opening balance of the year 644,763,730.00 204,296,719.24 4,735,000.00 - 520,074,434.56 648,306,530.85 2,022,176,414.65 644,763,730.00 149,910,827.18 3,445,000.00 120,437.30 483,685,708.52 667,999,192.32 1,949,924,895.32
III. Changes for the year - - 1,785,000.00 599,960.67 - (178,175,943.24) (175,790,982.57) - 54,385,892.06 1,290,000.00 (120,437.30) 36,388,726.04 (19,692,661.47) 72,251,519.33
(I) Total comprehensive income - - 1,785,000.00 - - 30,727,505.28 32,512,505.28 - - 1,290,000.00 - - 268,153,919.27 269,443,919.27
(II) Contributions and reduction in capital - - - - - - - - - - - - - -
1. Capital contribution from shareholders - - - - - - - - - - - - - -
2. Share-based payment recognised in
- - - - - - - - - - - - - -
shareholders' equity
3. Others - - - - - - - - - - - - - -
(III) Profit distribution - - - - - (208,903,448.52) (208,903,448.52) - - - - 36,388,726.04 (287,846,580.74) (251,457,854.70)
1. Transfer to surplus reserve - - - - - - - - - - - 36,388,726.04 (36,388,726.04) -
2. Transfer to general reserve - - - - - - - - - - - - - -
3. Distributions to shareholders - - - - - (208,903,448.52) (208,903,448.52) - - - - - (251,457,854.70) (251,457,854.70)
4. Others - - - - - - - - - - - - - -
(IV) Transfers within shareholders' equity - - - - - - - - - - - - - -
1. Capitalisation of capital reserve - - - - - - - - - - - - - -
2. Capitalisation of surplus reserve - - - - - - - - - - - - - -
3. Loss made up by surplus reserve - - - - - - - - - - - - - -
4. Others - - - - - - - - - - - - - -
(V) Special reserve - - - 599,960.67 - - 599,960.67 - - - (120,437.30) - - (120,437.30)
1. Withdrawn in the period - - - 1,432,849.49 - - 1,432,849.49 - - - 2,362,146.80 - - 2,362,146.80
2. Utilized in the period - - - (832,888.82) - - (832,888.82) - - - (2,482,584.10) - - (2,482,584.10)
(VI) Others - - - - - - - - 54,385,892.06 - - - - 54,385,892.06
IV. Closing balance of the year 644,763,730.00 204,296,719.24 6,520,000.00 599,960.67 520,074,434.56 470,130,587.61 1,846,385,432.08 644,763,730.00 204,296,719.24 4,735,000.00 - 520,074,434.56 648,306,530.85 2,022,176,414.65
The accompanying notes form an integral part of the financial statements.
-8-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(I) GENERAL INFORMATION OF THE COMPANY
Shenzhen Chiwan Wharf Holdings Limited (the "Company") was a joint stock limited company
reorganized from Shenzhen Chiwan Wharf Co., Ltd on 16 January 1993 as approved by General
Office of Shenzhen Municipal People's Government (filed as Shen Fu Ban Fu [1993] No. 357).
On 18 February 1993, under the approval released by People's Bank of China Shenzhen Branch
(filed as Shen Ren Yin Fu Zi [1993] No.038), the Company issued, by public offering, the
ordinary shares of 310,470,000 shares, including the domestic shares ("A shares") of 46,000,000
shares, and domestically listed foreign shares ("B shares") of 40,000,000 shares. Both shares were
listed on Shenzhen Stock Exchange on 5 May 1993.
As of 31 December 2005, the total shares of the Company amounted to 644,763,730, after several
times of capitalization of capital reserves and additional issuances during the period between 1993
and 2005.
On 26 May 2006, the stockholders' meeting of the Company approved the spilt-share reform
under which a consideration comprising of every 1 A-share, cash of RMB11.5 and 8 put warrants
was granted by China Nanshan Development (Group) Incorporation ("Nanshan Group"), the non-
circulating shareholder of the Company, to each circulating shareholder holding 10 A-shares of
the Company. After implementation of the split-share reform, the total number of A-shares
remained unchanged with 370,802,900 shares held by Nanshan Group, occupying 57.51% of the
total shares.
On 13 July 2011, Nanshan Group obtained 75,100 shares of A shares in the secondary market; as
a result, the number of A-shares held by Nanshan Group arrived at 370,878,000, occupying
57.52% of the total shares.
On 17 September 2012, China Merchants Holdings International Company Limited (the "CMHI")
signed a shareholding entrustment agreement with Nanshan Group, subject to which Nanshan
Group entrusted CMHI with its holding in Shenzhen Chiwan Wharf of A-shares of 370,878,000
shares (57.52% of the total shares). Additionally, 55,314,200 B-shares (8.58% of the total shares)
indirectly held by CMHI via Jing Feng Co., Ltd, a subsidiary of CMHI, plus the voting rights
obtained via entrustment, make up of 66.10% of the voting right of the Company.
On 1 November 2012, the China Securities Regulatory Commission ("CSRC") approved the
Announcement of China Merchants Holdings International Company Limited Concerning the
Purchase Report of Shenzhen Chiwan Wharf Holding Limited and the Exemption of the Offer
Obligation (filed as Zhen Jian Xu Ke [2012] No.1428), exempting CMHI from the offer
obligation resulted from the fact of controlling Shenzhen Chiwan Wharf's 370,878,000 shares
through stock custody.
On 27 December 2012, Nanshan Group signed an equity transfer agreement with Shenzhen Malai
Warehouse Co., Ltd, a subsidiary of CMHI, subject to which Nanshan Group would transfer
161,190,933 A-shares of the Company to Shenzhen Malai Warehouse Co., Ltd.
-9-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(I) GENERAL INFORMATION OF THE COMPANY - continued
On 6 March 2013, the Company received the Reply on Certain Issues Regarding Agreed Transfer
of State-owned Shares of Shenzhen Chiwan Wharf Holdings Ltd. released by the State-owned
Assets Supervision and Administration Commission (filed as Guo Zi Chan Quan [2013] No. 94),
which approved Nanshan Group to transfer 161,190,933 A-shares of the Company to Shenzhen
Malai Warehouse Co., Ltd. The transfer procedures of registration of the above shares have been
completed on April 25th, 2013.
The headquarters of the Company is located in Shenzhen Guangdong Province. The Company
and its subsidiaries (collectively the "Group") are principally engaged in the provision of cargo
handling, warehousing, land and sea transportation services, cargo packing, agency business and
the other services.
The scope of consolidated financial statements in the current period involves 11 subsidiaries. See
Note (VIII) "Equity in other entities" for details. The consolidation scope has changed from that
of last year because Grossalan Investments Limited, a subsidiary of the Company registered in the
British Virgin Islands, has been cancelled and thus deconsolidated in the current period. See Note
(VII) "Changes of consolidation scope" for details.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises issued by the Ministry
of Finance (MoF) including the new and modified ones in 2014. In addition, the Group has
disclosed relevant financial information in accordance with Information Disclosure and
Presentation Rules for Companies Offering Securities to the Public No. 15-General Provisions on
Financial Reporting (Revised in 2014).
Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for certain financial instruments
which are measured at fair value, the Group adopts the historical cost as the principle of
measurement of the financial statements. Upon being restructured into a stock company, the fixed
assets and intangible assets initially contributed by the state-owned shareholders are recognized
based on the valuation amounts confirmed by the state-owned assets administration department.
Where assets are impaired, provisions for asset impairment are made in accordance with the
relevant requirements.
Where the historical cost is adopted as the measurement basis, assets are recorded at the amount
of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the
time of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or
the contractual amounts for assuming the present obligation, or, at the amounts of cash or cash
equivalents expected to be paid to settle the liabilities in the normal course of business.
- 10 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS - continued
Basis of accounting and principle of measurement - continued
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using valuation technique. Fair value measurement
and/or disclosure in the financial statements are determined according to the above basis.
Fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the
inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that
the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for
the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
Going Concern
The Group evaluated its going concern ability within 12 months since 30 June 2015. No events or
circumstances are noted, which could cause significant doubt upon the entity's ability to continue
as going concern. Hence, the financial statements have been prepared on a going concern basis.
(III) STATEMENT OF COMPLIANCE WITH THE ACCOUNTING STANDARDS FOR
BUSINESS ENTERPRISES
The financial statements of the Company have been prepared in accordance with the Accounting
Standards for Business Enterprises, and present truly and completely, the Company's and
consolidated financial position as of 30 June 2015, and the Company's and consolidated results of
operations and cash flows for six months ended 30 June 2015.
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES
All the following significant accounting policies and accounting estimates are based on
Accounting Standards for Business Enterprises.
1. Accounting period
The Group has adopted the calendar year as its accounting year, e.g. from 1 January to 31
December.
- 11 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
2. Operating cycle
Buginese cycle is referred to the period from which an enterprise buys assets to manufacture to
the date it achieves cash or cash equivalents.
3. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company
and its domestic subsidiaries operate. Therefore, the Company and its domestic subsidiaries
choose RMB as their functional currency. The Company's foreign subsidiary chooses RMB or
Hong Kong dollars ("HKD") as its functional currency on the basis of the primary economic
environment in which it operates. The Group adopts RMB to prepare its financial statements.
4. The accounting treatment of business combinations involving or not involving enterprises
under common control
Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
4.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded
by the combining entities at the date of the combination. The difference between the carrying
amount of the net assets obtained and the carrying amount of the consideration paid for the
combination is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred.
4.2 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same
party or parties before and after the combination.
- 12 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
4. The accounting treatment of business combinations involving or not involving enterprises
under common control - continued
4.2 Business combinations not involving enterprises under common control and goodwill -
continued
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets
given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for
control of the acquiree, the intermediary expenses (fees in respect of auditing, legal services,
valuation and consultancy services, etc.) and other administrative expenses attributable to the
business combination are recognized in profit or loss in the periods when they are incurred.
Where a business combination not involving enterprises under common control is achieved in
stages that involve multiple transactions, the cost of combination is the sum of the consideration
paid at the acquisition date and the fair value of the equity in the acquiree held before the
acquisition. The equity held in the acquiree before the acquisition date is remeasured at its fair
value at the acquisition date, with any difference between its fair value and its carrying amount
being recognized as investment income, and the other comprehensive income relating to the
equity held in the acquiree before the acquisition date being transferred to investment income.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired by the acquirer in a
business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date.
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's
identifiable net assets, the difference is treated as an asset and recognized as goodwill, which is
measured at cost on initial recognition. Where the cost of combination is less than the acquirer's
interest in the fair value of the acquiree's identifiable net assets, the acquirer reassesses the
measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent
liabilities and measurement of the cost of combination. If after that reassessment, the cost of
combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable
net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the
current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment
losses, and is presented separately in the consolidated financial statements.
5. Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of
control. Control exists when the investor has power over the investee; is exposed, or has rights, to
variable returns from its involvement with the investee; and has the ability to use its power over
the investee to affect its returns. The Group reassesses whether or not it controls an investee if
facts and circumstances indicate that there are changes of the above elements of the definition of
control.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiaries and
ceases when the Group loses control of the subsidiary.
- 13 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
5. Preparation of consolidated financial statements - continued
For a subsidiary already disposed of by the Group, the operating results and cash flows before the
date of disposal (the date when control is lost) are included in the consolidated income statement
and consolidated statement of cash flows, as appropriate.
For subsidiaries acquired through a business combination involving enterprises not under
common control, the operating results and cash flows from the acquisition date (the date when
control is obtained) are included in the consolidated income statement and consolidated statement
of cash flows, as appropriate, and no adjustment is made to the opening balances and comparative
figures in the consolidated financial statements.
No matter when the business combination occurs in the reporting period, subsidiaries acquired
through a business combination involving enterprises under common control are included in the
Group's scope of consolidation as if they had been included in the scope of consolidation from the
date when they first came under the common control of the ultimate controlling party. Their
operating results and cash flows from the date when they first came under the common control of
the ultimate controlling party are included in the consolidated income statement and consolidated
statement of cash flows, as appropriate.
The significant accounting policies and accounting periods adopted by the subsidiaries are
determined based on the uniform accounting policies and accounting periods set out by the
Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the parent is treated as minority
interests and presented as "minority interests" in the consolidated balance sheet under
shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable
to minority interests is presented as "minority interests" in the consolidated income statement
under the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders' portion of the opening balance of shareholders' equity of the
subsidiary, the excess amount is still allocated against minority interests.
Acquisition of minority interests or disposals of interests in a subsidiary that do not result in the
loss of control over the subsidiary are accounted for as equity transactions. The carrying amounts
of the parent's interests and minority interests are adjusted to reflect the changes in their relative
interests in the subsidiary. The difference between the amount by which the minority interests are
adjusted and the fair value of the consideration paid or received is adjusted to shareholders' equity
(capital reserve). If the capital reserve is not sufficient to absorb the difference, the excess are
adjusted against retained earnings.
- 14 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
5. Preparation of consolidated financial statements - continued
When the Group loses control over a subsidiary due to disposal of equity investment or other
reason, any retained interest is re-measured at its fair value at the date when control is lost. The
difference between (i) the aggregate of the consideration received on disposal and the fair value of
any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated
from the acquisition date according to the original proportion of ownership interests is recognized
as investment income in the period in which control is lost, and the goodwill is offset accordingly.
Other comprehensive income associated with investment in the former subsidiary is reclassified to
investment income in the period in which control is lost.
6、Types of joint arrangements and the accounting treatment of joint operation
There are two types of joint arrangements - joint operations and joint ventures. The classification
of joint arrangements under is determined based on the rights and obligations of parties to the
joint arrangements by considering the structure, the legal form of the arrangements, the
contractual terms agreed by the parties to the arrangement. A joint operation is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to
the net assets of the arrangement.
Investments in joint ventures are accounted for using the equity method by the Group, which is
detailed in Note(IV) 12.3.2 A long-term equity investment accounted for using the equity method.
The Group as a joint operator recognizes the following items in relation to its interest in a joint
operation: (1) its solely-held assets, including its share of any assets held jointly; (2) its solely-
assumed liabilities, including its share of any liabilities incurred jointly; (3) its revenue from the
sale of its share of the output arising from the joint operation; (4) its share of the revenue from the
sale of the output by the joint operation; and (5) its solely-incurred expenses, including its share of
any expenses incurred jointly. The Group accounts for the recognised assets, liabilities, revenues
and expenses relating to its interest in a joint operation in accordance with the requirements
applicable to the particular assets, liabilities, revenues and expenses.
7. Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents are the Group's short-term, highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
- 15 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
8. Translation of transactions and financial statements denominated in foreign currencies
8.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange
rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot
exchange rates at the balance sheet date. Exchange differences arising from the differences
between the spot exchange rates prevailing at the balance sheet date and those on initial
recognition or at the previous balance sheet date are recognized in profit or loss for the period,
except that (1) exchange differences related to a specific-purpose borrowing denominated in
foreign currency that qualify for capitalization are capitalized as part of the cost of the qualifying
asset during the capitalization period; (2) exchange differences related to hedging instruments for
the purpose of hedging against foreign currency risks are accounted for using hedge accounting;
(3) exchange differences arising from change in the carrying amounts other than the amortized
cost of available-for-sale monetary items are included in other comprehensive income.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in
functional currency at the spot exchange rates on the dates of the transactions; the amounts in
functional currency remain unchanged. Foreign currency non-monetary items measured at fair
value are re-translated at the spot exchange rate on the date the fair value is determined.
Difference between the re-translated functional currency amount and the original functional
currency amount is treated as changes in fair value including changes of exchange rate and is
recognized in profit and loss or included in other comprehensive income.
8.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a
foreign operation are translated from the foreign currency into RMB using the following method:
assets and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the
balance sheet date; shareholders' equity items are translated at the spot exchange rates at the dates
on which such items arose; all items in the income statement as well as items reflecting the
amount of profit distributed are translated at the spot exchange rates on the dates of the
transactions. The difference between the translated assets and the aggregate of liabilities and
shareholders' equity items is presented as other comprehensive income included in shareholders'
equity in the balance sheet.
Cash flows arising from transaction in a foreign currency and the cash flows of a foreign
subsidiary are translated at the spot exchange rate on the date of the cash flows. The effect of
exchange rate changes on cash and cash equivalents is regarded as a reconciling item and
presented separately in the cash flow statement as "effect of exchange rate changes on cash and
cash equivalents".
The opening balances and the comparative figures of previous year are presented at the translated
amounts of previous year's financial statements.
- 16 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
8. Translation of transactions and financial statements denominated in foreign currencies
- continued
8.2 Translation of financial statements denominated in foreign currencies - continued
On disposal of the Group's entire interest in a foreign operation, or disposal of certain interest or
due to other reasons resulting in a loss of control over a foreign operation, the Group transfers the
accumulated translation differences attributable to the shareholders' equity of the parent that
relating to translation of the financial statements of that foreign operation, presented under
shareholders' equity, to profit or loss in the period in which the disposal occurs.
In case of a disposal or other reason that does not result in the Group losing control over a foreign
operation, the proportionate share of accumulated translation differences are re-attributed to non-
controlling interests and are not recognized in profit and loss. For partial disposals of associates or
joint ventures, the proportionate share of the accumulated translation differences is reclassified to
profit or loss.
9. Financial instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to the
contractual provisions of the instrument. Financial assets and financial liabilities are initially
measured at fair value. For financial assets and financial liabilities at fair value through profit or
loss, transaction costs are immediately recognized in profit or loss. For other financial assets and
financial liabilities, transaction costs are included in their initial recognized amounts.
9.1 Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability (or a group of financial assets or financial liabilities) and of allocating the
interest income or interest expense over the relevant period, using the effective interest rate. The
effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability or, where appropriate, a shorter period to
the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group estimates future cash flows considering all
contractual terms of the financial asset or financial liability (without considering future credit
losses), and also considers all fees paid or received between the parties to the contract giving rise
to the financial asset and financial liability that are an integral part of the effective interest rate,
transaction costs, and premiums or discounts etc.
9.2 Classification, recognition and measurement of financial assets
On initial recognition, the Group's financial assets are classified into one of the four categories,
including financial assets at fair value through profit or loss ("FVTPL"), held-to-maturity
investments, loans and receivables, and available-for-sale financial assets. All regular way
purchases or sales of financial assets are recognized and derecognized on a trade date basis.
- 17 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
9. Financial instruments - continued
9.2 Classification, recognition and measurement of financial assets - continued
9.2.1 Financial Assets at Fair Value through Profit or Loss ("FVTPL")
Financial assets at fair value through profit or loss ("FVTPL") include financial assets held for
trading and those designated as at fair value through profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (1)
it has been acquired principally for the purpose of selling in the near term; or (2) on initial
recognition it is part of a portfolio of identified financial instruments that the Group manages
together and there is objective evidence that the Group has a recent actual pattern of short-term
profit-taking; or (3) it is a derivative that is not designated and effective as a hedging instrument,
or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery
of an unquoted equity instrument (without a quoted price in an active market) whose fair value
cannot be reliably measured.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the
following conditions is satisfied: (1) such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise result from measuring assets or
recognizing the gains or losses on them on different bases; or (2) the financial asset forms part of
a group of financial assets or a group of financial assets and financial liabilities, which is managed
and its performance is evaluated on a fair value basis, in accordance with the Group's documented
risk management or investment strategy, and information about the grouping is reported to key
management personnel on that basis; or (3) eligible hybrid instruments that contain embedded
derivatives.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising
from changes in the fair value and any dividend or interest income earned on the financial assets
are recognized in profit or loss.
9.2.2 Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturity dates that the Group's management has the positive intention and
ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost using the effective
interest method. Gain or loss arising from derecognition, impairment or amortization is
recognized in profit or loss.
9.2.3 Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Financial assets classified as loans and receivables by the
Group include notes receivable, accounts receivable, interest receivable, dividends receivable, and
other receivables.
- 18 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
9. Financial instruments - continued
9.2 Classification, recognition and measurement of financial assets - continued
9.2.3 Loans and receivables - continued
Loans and receivables are subsequently measured at amortized cost using the effective interest
method. Gain or loss arising from derecognition, impairment or amortization is recognized in
profit or loss.
9.2.4 Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on
initial recognition as available for sale, and financial assets that are not classified as financial
assets at fair value through profit or loss, loans and receivables or held-to-maturity investments.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses
arising from changes in the fair value are recognized as other comprehensive income and included
in the capital reserve, except that impairment losses and exchange differences related to amortized
cost of financial assets are recognized in profit or loss, until the financial assets are derecognized,
at which time the gains or losses are released and recognized in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the
available-for-sale financial assets are held, are recognized in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and
whose fair value cannot be reliably measured, and derivative financial assets that are linked to and
must be settled by delivery of such unquoted equity instruments are measured at cost.
9.3 Impairment of financial assets
The Group assesses at each balance sheet date the carrying amounts of financial assets other than
those at fair value through profit or loss. If there is objective evidence that a financial asset is
impaired, the Group determines the amount of any impairment loss. Objective evidence that a
financial asset is impaired is evidence that, arising from one or more events that occurred after the
initial recognition of the asset, the estimated future cash flows of the financial asset, which can be
reliably measured, have been affected.
Objective evidence that a financial asset is impaired includes the following observable events:
(1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal
payments;
(3) The Group, for economic or legal reasons relating to the borrower's financial difficulty,
granting a concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial
reorganizations;
(5) The disappearance of an active market for that financial asset because of financial difficulties
of the issuer;
- 19 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
9. Financial instruments - continued
9.3 Impairment of financial assets - continued
(6) Upon an overall assessment of a group of financial assets, observable data indicates that there
is a measurable decrease in the estimated future cash flows from the group of financial assets
since the initial recognition of those assets, although the decrease cannot yet be identified
with the individual financial assets in the group. Such observable data includes:
- Adverse changes in the payment status of borrower in the group of assets;
- Economic conditions in the country or region of the borrower which may lead to a failure to
pay the group of assets;
(7) Significant adverse changes in the technological, market, economic or legal environment in
which the issuer of equity instruments operates, indicating that the cost of the investment in
the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument
below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortized cost
If financial assets carried at cost or amortized cost are impaired, the carrying amounts of the
financial assets are reduced to the present value of estimated future cash flows (excluding future
credit losses that have not been incurred) discounted at the financial asset's original effective
interest rate. The amount of reduction is recognized as an impairment loss in profit or loss. If,
subsequent to the recognition of an impairment loss on financial assets carried at amortized cost,
there is objective evidence of a recovery in value of the financial assets which can be related
objectively to an event occurring after the impairment is recognized, the previously recognized
impairment loss is reversed. However, the reversal does not result in a carrying amount of the
financial asset that exceeds what the amortized cost would have been had the impairment not been
recognized at the date the impairment is reversed.
For a financial asset that is individually significant, the Group assesses the asset individually for
impairment. For a financial asset that is not individually significant, the Group assesses the asset
individually for impairment or includes the asset in a group of financial assets with similar credit
risk characteristics and collectively assesses them for impairment. If the Group determines that no
objective evidence of impairment exists for an individually assessed financial asset (whether
significant or not), it includes the asset in a group of financial assets with similar credit risk
characteristics and collectively assesses them for impairment. Assets for which an impairment
loss is individually recognized are not included in a collective assessment of impairment.
- 20 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
9. Financial instruments - continued
9.3 Impairment of financial assets - continued
- Impairment of available-for-sale financial assets
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in
fair value previously recognized directly in other comprehensive income is reclassified from the
capital reserve to profit or loss. The amount of the cumulative loss that is reclassified from capital
reserve to profit or loss is the difference between the acquisition cost (net of any principal
repayment and amortization) and the current fair value, less any impairment loss on that financial
asset previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there
is objective evidence of a recovery in value of the financial assets which can be related
objectively to an event occurring after the impairment is recognized, the previously recognized
impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale
equity instruments is recognized as other comprehensive income and included in the capital
reserve, while the amount of reversal of impairment loss on available-for-sale debt instruments is
recognized in profit or loss.
- Impairment of financial assets measured at cost
If an impairment loss has been incurred on an investment in unquoted equity instrument (without
a quoted price in an active market) whose fair value cannot be reliably measured, or on a
derivative financial asset that is linked to and must be settled by delivery of such an unquoted
equity instrument, the carrying amount of the financial asset is reduced to the present value of
estimated future cash flows discounted at the current market rate of return for a similar financial
asset. The amount of reduction is recognized as an impairment loss in profit or loss. The
impairment loss on such financial asset is not reversed once it is recognized.
9.4 Transfer of financial assets
The Group derecognizes a financial asset if one of the following conditions is satisfied: (1) the
contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has
been transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (3) although the financial asset has been transferred, the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset, and it retains control of the financial asset, it recognizes the financial asset to the
extent of its continuing involvement in the transferred financial asset and recognizes an associated
liability. The extent of the Group's continuing involvement in the transferred asset is the extent to
which it is exposed to changes in the value of the transferred asset.
- 21 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
9. Financial instruments - continued
9.4 Transfer of financial assets - continued
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the
difference between (1) the carrying amount of the financial asset transferred; and (2) the sum of
the consideration received from the transfer and any cumulative gain or loss that has been
recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the
transferred financial asset is allocated between the part that continues to be recognized and the
part that is derecognized, based on the respective fair values of those parts. The difference
between (1) the carrying amount allocated to the part derecognized; and (2) the sum of the
consideration received for the part derecognized and any cumulative gain or loss allocated to the
part derecognized which has been previously recognized in other comprehensive income, is
recognized in profit or loss
9.5 Classification and recognition of financial liabilities
Debt and equity instruments issued by the Group are classified into financial liabilities or equity
on the basis of the substance of the contractual arrangements and definitions of financial liability
and equity instrument.
On initial recognition, financial liabilities are classified into financial liabilities at fair value
through profit or loss and other financial liabilities.
9.5.1 Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL consist of financial liabilities held for trading and those designated
as at FVTPL on initial recognition.
A financial liability is classified as held for trading if one of the following conditions is satisfied:
(1) It has been acquired principally for the purpose of repurchasing in the near term; or (2) On
initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or (3) It is a derivative, except for a derivative that is a designated and
effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and
must be settled by delivery of an unquoted equity instrument (without a quoted price in an active
market) whose fair value cannot be reliably measured.
- 22 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
9. Financial instruments - continued
9.5 Classification and recognition of financial liabilities - continued
9.5.1 Financial liabilities at fair value through profit or loss - continued
A financial liability may be designated as at FVTPL upon initial recognition only when one of the
following conditions is satisfied: (1) such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise result from measuring liabilities
or recognizing the gains or losses on them on different bases; or (2) the financial liability forms
part of a group of financial liabilities or a group of financial assets and financial liabilities, which
is managed and its performance is evaluated on a fair value basis, in accordance with the Group's
documented risk management or investment strategy, and information about the grouping is
reported to key management personnel on that basis; or (3) eligible hybrid instruments that
contain embedded derivatives.
Financial liabilities at FVTPL are subsequently measured at fair value, and any gains or losses
arising from changes in the fair value or any dividend or interest expense related with the
financial liabilities are recognized in profit or loss.
9.5.2 Other financial liabilities
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity
instrument (without a quoted price in an active market) whose fair value cannot be reliably
measured, it is subsequently measured at cost. Other financial liabilities are subsequently
measured at amortized cost using the effective interest method, with gains or losses arising from
derecognition or amortization recognized in profit or loss.
9.5.3 Financial guarantee contracts
A financial guarantee contract is a contract by which the guarantor and the lender agree that the
guarantor would settle the debts or bear obligations in accordance with terms of the contract in
case the borrower fails to settle the debts. Financial guarantee contracts that are not designated as
financial liabilities at fair value through profit or loss, are initially measured at their fair values
less the directly attributable transaction costs. Subsequent to initial recognition, they are measured
at the higher of: (i) the amount determined in accordance with Accounting Standard for Business
Enterprises No. 13 - Contingencies; and (ii) the amount initially recognized less cumulative
amortization recognized in accordance with the principles set out in Accounting Standard for
Business Enterprises No. 14 - Revenue.
9.6 Derecognition of Financial Liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged. An agreement between the Group (an existing borrower) and an
existing lender to replace the original financial liability with a new financial liability with
substantially different terms is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability.
- 23 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
9. Financial instruments – continued
9.6 Derecognition of Financial Liabilities – continued
When the Group derecognizes a financial liability or a part of it, it recognizes the difference
between the carrying amount of the financial liability (or part of the financial liability)
derecognized and the consideration paid (including any non-cash assets transferred or new
financial liabilities assumed) in profit or loss.
9.7 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized amounts,
and intends either to settle on a net basis, or to realize the financial asset and settle the financial
liability simultaneously, a financial asset and a financial liability shall be offset with the net
amount presented in the balance sheet. Except for the circumstances above, financial assets and
financial liabilities shall be presented separately in the balance sheet and shall not be offset.
9.8 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. The issuance including refinancing, repurchase, sale or
cancellation of equity instrument of the Group is recognized as movement of shareholders' equity.
The Group does not recognize any changes in the fair value of equity instruments. Transaction
costs associated with equity transactions are deducted from shareholders' equity.
The distributions made by the Group to holders of the equity instruments are recognized as profit
distribution. Any issuance of stock dividends do not affect the shareholders' equity.
10. Receivables
10.1 Receivables that are individually significant and for which bad debt provision is individually
assessed
Basis or monetary criteria for Top five balances of receivables are deemed as
determining individually individually significant receivables by the Group.
significant receivables
For receivables that are individually significant, the Group
assesses the receivables individually for impairment; for a
Provision methods for receivables financial asset that is not impaired individually, the Group
that are individually significant includes the asset in a group of financial assets with
and for which bad debt provision similar credit risk characteristics and collectively assesses
is individually assessed them for impairment. Receivables for which an
impairment loss is individually recognized are not
included in a collective assessment of impairment.
- 24 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
10. Receivables - continued
10.2 Receivables for which bad debt provision is collectively assessed
Basis for determining a portfolio
Portfolio 1 The portfolio primarily includes amounts due from related
parties of the Group, deposits and petty cash etc.
Portfolio 2 This portfolio excludes amounts due from related parties of
the Group, deposits and petty cash etc.
Bad debt provision methods for a portfolio
Portfolio 1 Specific Identification Method
Portfolio 2 Aging Analysis Method
Portfolios that use aging analysis for bad debt provision:
Provision proportion Provision proportion
for accounts for other receivables
Aging receivable (%) (%)
Within 90 days (inclusive) 0 0
More than 91 days but not exceeding 183 days 0-3 0-3
More than 184 days but not exceeding year 5 5
More than 1 year but not exceeding 2 years 20 20
More than 2 years but not exceeding 3 years 50 50
More than 3 years 100 100
10.3 Accounts receivable that are not individually significant but for which individual bad debt
provision is individually assessed:
Reasons for making individual As objective evidence indicates the Group is unable to
bad debt provision collect the receivables under original terms, the company
makes individual bad debt provision.
Bad debt provision methods Under bad debt provision method, the provision is
recognized by the differences between the expected present
value of future cash flows and carrying value.
- 25 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
11. Inventories
11.1 Categories of inventories
Inventories include spare parts, fuel, and low value consumables. Inventories are initially
measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and
other expenditures incurred in bringing the inventories to their present location and condition.
11.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method.
11.3 Basis for determining net realizable value of inventories and provision methods for decline
in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If
the cost of inventories is higher than the net realizable value, a provision for decline in value of
inventories is made. Net realizable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion, the estimated costs necessary to make the sale and
relevant taxes. Net realizable value is determined on the basis of clear evidence obtained, after
taking into consideration the purposes of inventories being held and effect of post balance sheet
events.
Provision for decline in value of other inventories is made based on the excess of cost of
inventory over its net realizable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that
previously caused inventories to be written down below cost no longer exist so that the net
realizable value of inventories is higher than their cost, the original provision for decline in value
is reversed and the reversal is included in profit or loss for the period.
11.4 Inventory count system
The perpetual inventory system is maintained for stock system.
11.5 Amortization methods for low cost and short-lived consumable items and packaging
materials
Packaging materials and low cost and short-lived consumable items are amortized using the
immediate write-off method.
- 26 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
12. Long-term equity investments
12.1 Basis for determining joint control and significant influence over investee
Control is archived when the Group has the power over the investee and has rights to variable
returns from its involvement with the investee; and has the ability to use its power to affect its
returns. Joint control is the contractually agreed sharing of control over an economic activity, and
exists only when the strategic financial and operating policy decisions relating to the activity
require the unanimous consent of the parties sharing control. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies. When determining whether an investing enterprise is able to exercise
control or significant influence over an investee, the effect of potential voting rights of the
investee (for example, warrants and convertible debts) held by the investing enterprises or other
parties that are currently exercisable or convertible shall be considered.
12.2 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises
under common control, the investment cost of the long-term equity investment is the attributable
share of the carrying amount of the shareholders' equity of the acquiree at the date of combination.
The difference between the initial investment cost and the carrying amount of cash paid, non-cash
assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of
capital reserve is not sufficient, any excess shall be adjusted to retained earnings. If the
consideration of the combination is satisfied by the issue of equity securities, the initial
investment cost of the long-term equity investment shall be the share of party being absorbed of
the owners' equity in the consolidated financial statements of the ultimate controlling party at the
date of combination. The aggregate face value of the shares issued shall be accounted for as share
capital. The difference between the initial investment cost and the aggregate face value of the
shares issued shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient,
any excess shall be adjusted to retained earnings.
For a long-term equity investment acquired through business combination not involving
enterprises under common control, the investment cost of the long-term equity investment
acquired is the cost of acquisition.
The absorbing party's or purchaser's intermediary expenses (fees in respect of auditing, legal
services, valuation and consultancy services, etc.) and other administrative expenses attributable
to the business combination are recognized in profit or loss in the periods when they are incurred.
- 27 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
12. Long-term equity investments - continued
12.2 Determination of investment cost - continued
The long-term equity investment acquired otherwise than through a business combination is
initially measured at its cost. When the entity is able to exercise significant influence or joint
control (but not control) over an investee due to additional investment, the cost of long-term
equity investments is the sum of the fair value of previously-held equity investments determined
in accordance with Accounting Standard for Business Enterprises No.22–Financial Instruments:
Recognition and Measurement of (CAS 22) and the additional investment cost.
12.3 Subsequent measurement and recognition of profit or loss
12.3.1 A long-term equity investment accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the
Company's separate financial statements. A subsidiary is an investee that is controlled by the
Group.
Under the cost method, a long-term equity investment is measured at initial investment cost.
Additional or withdrawing investment would affect the cost of long-term equity investment.
Investment income is recognized in the period in accordance with the attributable share of cash
dividends or profit distributions declared by the investee.
12.3.2 A long-term equity investment accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An
associate is an entity over which the Group has significant influence and a joint venture is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint arrangement.
Under the equity method, where the initial investment cost of a long-term equity investment
exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition, no adjustment is made to the initial investment cost. Where the initial investment cost
is less than the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition, the difference is recognized in profit or loss for the period, and the cost of the long-
term equity investment is adjusted accordingly.
- 28 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
12. Long-term equity investments - continued
12.3 Subsequent measurement and recognition of profit or loss - continued
12.3.2 A long-term equity investment accounted for using the equity method - continued
Under the equity method, the Group recognizes its share of the other comprehensive income and
net profit or loss of the investee for the period as other comprehensive income and investment
income or loss respectively for the period, and the carrying amount of the long-term equity
investment is adjusted accordingly. The carrying amount of the investment shall be reduced by the
portion of any profit distributions or cash dividends declared by the investee that is distributed to
the investing enterprise. The investing enterprise shall adjust the carrying amount of the
long-term equity investment for other changes in owners' equity of the investee (other
than net profits or losses, other comprehensive income and profit distribution), and include the
corresponding adjustment in capital reserve. The Group recognizes its share of the investee's net
profit or loss based on the fair value of the investee's individually identifiable assets at the
acquisition date after making appropriate adjustments. Where the accounting policies and
accounting period adopted by the investee are different from those of the investing enterprise, the
investing enterprise shall adjust the financial statements of the investee to conform to its own
accounting policies and accounting period, and recognise other comprehensive income and
investment income or losses based on the adjusted financial statements. Unrealized profits or
losses resulting from the Group's transactions and assets invested or sold that are not recognized
as business transactions with its associates and joint ventures are recognized as investment income
or loss to the extent that those attributable to the Group's, equity interest are eliminated. However,
unrealized losses resulting from the Group's transactions with its associates and joint ventures
which represent impairment losses on the transferred assets are not eliminated.
The Group discontinues recognizing its share of net losses of the investee after the carrying
amount of the long-term equity investment together with any long-term interests that in substance
form part of its net investment in the investee are reduced to zero. Except that if the Group has
incurred obligations to assume additional losses, a provision is recognized according to the
obligation expected, and recorded in the investment loss for the period. Where net profits are
subsequently made by the investee, the Group resumes recognizing its share of those profits only
after its share of the profits exceeds the share of losses previously not recognized.
- 29 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
12. Long-term equity investments - continued
12.4 Disposal of long-term equity investments
On disposal of a long-term equity investment, the difference between the proceeds actually
received and receivable and the carrying amount is recognized in profit or loss for the period.
For long-term equity investments accounted for using the equity method, if the remaining interest
after disposal is still accounted for using the equity method, other comprehensive income
previously recognised for using the equity method is accounted for on the same basis as would
have been required if the investee had directly disposed of related assets or liabilities, and
transferred to profit or loss for the period on a pro rata basis; owners' equity recognised due to
changes in other owners' equity of the investee (other than net profit or loss, other comprehensive
income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.
For long-term equity investments accounted for using the cost method, if the remaining interest
after disposal is still accounted for using the cost method, other comprehensive income previously
recognised for using the equity method or in accordance with the standards for the recognition and
measurement of financial instruments before obtaining the control over the investee, is accounted
for on the same basis as would have been required if the investee had directly disposed of related
assets or liabilities, and transferred to profit or loss for the period on a pro rata basis; changes in
other owners' equity in the investee's net assets recognised under the equity method (other than
net profit or loss, other comprehensive income and profit distribution) is transferred to profit or
loss for the period on a pro rata basis.
13. Investment properties
Investment property is property held to earn rentals or for capital appreciation or both. It includes
a land use right that is leased out; a land use right held for transfer upon capital appreciation; and
a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such
investment property are included in the cost of the investment property if it is probable that
economic benefits associated with an investment property will flow to the Group and the
subsequent expenditures can be measured reliably, other subsequent expenditures are recognized
in profit or loss in the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment property, and adopts a
depreciation or amortization policy for the investment property which is consistent with that for
buildings or land use rights.
When an investment property is sold, transferred, retired or damaged, the Group recognizes the
amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss
for the period.
- 30 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
14. Fixed assets
14.1 Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or
services, for rental to others, or for administrative purposes, and have useful lives of more than
one accounting year. A fixed asset is recognized only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.
Fixed assets are initially measured at cost. Upon being restructured into a stock company, the
fixed assets initially contributed by the state-owned shareholders are recognized based on the
valuation amounts confirmed by the state-owned assets administration department.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and
if it is probable that economic benefits associated with the asset will flow to the Group and the
subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the
replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss in
the period in which they are incurred.
14.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method starting from the
month subsequent to the one in which it is ready for intended use. The useful life, estimated net
residual value rate and annual depreciation rate of each category of fixed assets are as follows:
Estimated Estimated Annual
Category useful lives residual value depreciation rate
Port and terminal facilities 5 - 50 years 10% 1.8%-18%
Container yards and buildings 5 - 40 years 10% 2.25%-18%
Mechanical equipment 5 - 15 years 10% 6%-18%
Motor vehicles, cargo ships and
5 - 20 years 10% 4.5%-18%
tugboats
Other equipment 5 years 10% 18%
Estimated net residual value of a fixed asset is the estimated amount that the Group would
currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the
asset were already of the age and in the condition expected at the end of its useful life.
- 31 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
14. Fixed assets - continued
14.3 Other explanations
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from
its use or disposal, the fixed asset is derecognized. When a fixed asset is sold, transferred, retired
or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and
related taxes is recognized in profit or loss for the period.
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least once at each financial year-end, and account for any change
as a change in an accounting estimate.
15. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various
construction expenditures during the construction period, borrowing costs capitalized before it is
ready for intended use and other relevant costs. Construction in progress is not depreciated.
Construction in progress is transferred to a fixed asset when it is ready for intended use.
16. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
asset are capitalized when expenditures for such asset and borrowing costs are incurred and
activities relating to the acquisition, construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired, constructed or produced becomes ready for its
intended use or sale. Capitalization of borrowing costs is suspended during periods in which the
acquisition, construction or production of a qualifying asset is interrupted abnormally and when
the interruption is for a continuous period of more than 3 months. Capitalization is suspended
until the acquisition, construction or production of the asset is resumed. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned from depositing the borrowed funds before being used on the asset or any
investment income on the temporary investment of those funds. Where funds are borrowed under
general-purpose borrowings, the Group determines the amount of interest to be capitalized on
such borrowings by applying a capitalization rate to the weighted average of the excess of
cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The
capitalization rate is the weighted average of the interest rates applicable to the general-purpose
borrowings.
- 32 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
16. Borrowing Costs - continued
During the capitalization period, exchange differences related to a specific-purpose borrowing
denominated in foreign currency are all capitalized. Exchange differences in connection with
general-purpose borrowings are recognized in profit or loss in the period in which they are
incurred.
17. Intangible assets
Intangible assets include land use rights, coastal line use rights and computer software.
An intangible asset is measured initially at cost. Upon being restructured into a stock company,
the intangible assets initial contributed by the state-owned shareholders are recognized based on
the valuation amounts confirmed by the state-owned assets administration department. When an
intangible asset with a finite useful life is available for use, its original cost is amortized over its
estimated useful life.
Amortization Residual
Category method Estimated useful lives(year) value (%)
Land use rights Straight-line method 20-50 -
Computer software Straight-line method 5 -
Sea area use rights Straight-line method 5-50 -
Shore line use rights Straight-line method 50 -
For an intangible asset with a finite useful life, the Group reviews the useful life and amortization
method at the end of the period, and makes adjustments when necessary.
18. Impairment of long-term assets
The Group assesses at the balance sheet date whether there is any indication that the long-term
equity investments, investment properties measured at cost method, construction in progress,
fixed assets and intangible assets with a finite useful life may be impaired. If there is any
indication that such assets may be impaired, recoverable amounts are estimated for such assets.
Intangible assets with indefinite useful life and intangible assets not yet available for use are
tested for impairment annually, irrespective of whether there is any indication that the assets may
be impaired.
Recoverable amount is estimated on individual basis. If it is not practical to estimate the
recoverable amount of an individual asset, the recoverable amount of the asset group to which the
asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair value
less costs of disposal and the present value of the future cash flows expected to be derived from
the asset.
If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit
is accounted for as an impairment loss and is recognized in profit or loss.
- 33 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
18. Impairment of long-term assets - continued
Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment
testing, goodwill is considered together with the related assets groups, i.e., goodwill is reasonably
allocated to the related assets groups or each of assets groups expected to benefit from the
synergies of the combination. In testing an assets group with goodwill for impairment, an
impairment loss is recognized if the recoverable amount of the assets group or sets of assets
groups (including goodwill) is less than its carrying amount. The impairment loss is firstly
allocated to reduce the carrying amount of any goodwill allocated to such assets group or sets of
assets groups, and then to the other assets of the group pro-rata basis on the basis of the carrying
amount of each asset (other than goodwill) in the group.
Once the impairment loss of above-mentioned asset is recognized, it shall not be reversed in any
subsequent period.
19. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over
the current and subsequent periods (together of more than one year). Long-term prepaid expenses
are amortized using the straight-line method over the expected periods in which benefits are
derived.
20. Employee benefits
20.1 The accounting treatment of short-term employee benefits
Actually occurred short-term employee benefits are recognised as liabilities, with a corresponding
charge to the profit or loss for the period or in the costs of relevant assets in the accounting period
in which employees provide services to the Group. Staff welfare expenses incurred by the Group
are recognised in profit or loss for the period or the costs of relevant assets based on the actually
occurred amounts when it actually occurred. Non-monetary staff welfare expenses are measured
at fair value.
Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance, work injury insurance and maternity insurance, etc. and
payments of housing funds, as well as union running costs and employee education costs provided
in accordance with relevant requirements, are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognised as relevant liabilities,
with a corresponding charge to the profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
20.2 The accounting treatment of post-employment benefits
All the post-employment benefits are defined contribution plans.
The contribution payable to the defined contribution plan is recognised as liabilities, with a
corresponding charge to the profit or loss for the period or in the costs of relevant assets in the
accounting period in which employees provide services to the Group.
- 34 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
20、Employee benefits - continued
20.3 The accounting treatment of termination benefits
When the Group provides termination benefits to employees, employee benefit liabilities are
recognised for termination benefits, with a corresponding charge to the profit or loss for the
period at the earlier of: (1) when the Group cannot unilaterally withdraw the offer of termination
benefits because of the termination plan or a curtailment proposal; and (2) when the Group
recognizes costs or expenses related to restructuring that involves the payment of termination
benefits.
21. Provisions
Provisions are recognised when the Group has a present obligation related with contingencies, it is
probable that the Group will be required to settle that obligation causing an outflow of economic
benefits, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at balance sheet date, taking into account the risks, uncertainties and time
value of money surrounding the obligation. When a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash
flows where the effect of the time value of money is material.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable should not exceed the carrying
amount of provisions.
22. Revenue
22.1 Revenue from rendering of services
The Group provides load and unload services, tugboat and trailer services, logistics agency and
other related harbor services to customers. Revenue from rendering of services is recognized
when (1) the amount of revenue can be measured reliably; (2) it is probable that the associated
economic benefits will flow to the enterprise; and (3) the associated costs incurred or to be
incurred can be measured reliably.
22.2 Rental income
The operating lease income of investment property should be recognized in the lease term at the
price stated in contract or agreements using the straight-line method.
22.3 Interest income
Interest income is calculated based on the length of time for which the Group's cash is used by
others and the applicable interest rate.
- 35 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
23. Government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to
the Group at no consideration. A government grant measured at a nominal amount is recognized
immediately in profit or loss for the period.
A government grant is recognized only when the Group can comply with the conditions attached
to the grant and the Group will receive the grant. If a government grant is in the form of a transfer
of a monetary asset, it is measured at the amount received or receivable.
23.1 The accounting treatment of government grants related to assets
A government grant related to an asset is recognized as deferred income, and evenly amortized to
profit or loss over the useful life of the related asset.
23.2 The accounting treatment of government grants related to income
A government grant relating to income, if used to compensate the related expenses or losses to be
incurred in subsequent periods, is determined as deferred income and recognised in profit or loss
over the periods in which the related costs are recognized; if used to compensate the related
expenses or losses already incurred, is recognised immediately in profit or loss for the period.
24. Deferred tax assets/ deferred tax liabilities
The income tax expenses include current income tax and deferred income tax.
24.1 Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods
are measured at the amount expected to be paid (or recovered) according to the requirements of
tax laws.
24.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their
tax base, or between the nil carrying amount of those items that are not recognized as assets or
liabilities and their tax base that can be determined according to tax laws, deferred tax assets and
liabilities are recognized using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred
tax assets for deductible temporary differences are recognized to the extent that it is probable that
taxable profits will be available against which the deductible temporary differences can be utilized.
However, for temporary differences associated with the initial recognition of goodwill and the
initial recognition of an asset or liability arising from a transaction (not a business combination)
that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of
transaction, no deferred tax asset or liability is recognized.
- 36 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
24. Deferred tax assets/ deferred tax liabilities - continued
24.2 Deferred tax assets and deferred tax liabilities - continued
For deductible losses and tax credits that can be carried forward, deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against
which the deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the Group
is able to control the timing of the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from
deductible temporary differences associated with such investments and interests are only
recognized to the extent that it is probable that there will be taxable profits against which to utilize
the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates
applicable in the period in which the asset is realized or the liability is settled according to tax
laws.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except
when they arise from transactions or events that are directly recognized in other comprehensive
income or in equity, in which case they are recognized in other comprehensive income or in
equity, and when they arise from business combinations, in which case they adjust the carrying
amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it
is no longer probable that sufficient taxable profits will be available in the future to allow the
benefit of deferred tax assets to be utilized. Any such reduction in amount is reversed when it
becomes probable that sufficient taxable profits will be available.
24.3 Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis
or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax
liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle
current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously,
in each future period in which significant amounts of deferred tax assets or liabilities are expected
to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net
basis.
- 37 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
25. Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
25.1 The accounting treatment of operating leases
25.1.1 The Group as lessee under operating leases
Operating lease payments are recognized on a straight-line basis over the term of the relevant
lease, and are either included in the cost of related asset or charged to profit or loss for the period.
Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are
charged to profit or loss in the period in which they are actually incurred.
25.1.2 The Group as lessor under operating leases
Rental income from operating leases is recognized in profit or loss on a straight-line basis over the
term of the relevant lease. Initial direct costs with more than an insignificant amount are
capitalized when incurred, and are recognized in profit or loss on the same basis as rental income
over the lease term. Other initial direct costs with an insignificant amount are charged in profit or
loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the
period in which they actually arise.
26. Safety Production Cost
According to the Administrative Rules on Provision and Use of Enterprise Safety Production Cost
jointly issued by the Ministry of Finance and the State Administration of Work Safety on 14
February 2012 (filed as Cai Qi [2012] No. 16), safety production cost set aside by the Group is
directly included in the cost of relevant products or recognized in profit or loss for the period, as
well as the special reserve. When safety production cost set aside is utilized, if the costs incurred
can be categorized as expenditure, the costs incurred should be charged against the special reserve.
If the costs set aside are used to build up fixed assets, the costs should be charged to construction
in progress, and reclassified to fixed assets when the safety projects are ready for intended use.
Meantime, expenditures in building up fixed assets are directly charged against the special reserve
with the accumulated depreciation recognized at the same amount. Depreciation will not be made
in the future period on such fixed assets.
- 38 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IV) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
27. Critical judgments in applying accounting policies and key assumptions and
uncertainties in accounting estimates
In the application of accounting policies as set out in Note (IV), the Company is required to make
judgments, estimates and assumptions about the carrying amounts of items in the financial
statements that cannot be measured accurately, due to the internal uncertainty of the operating
activities. These judgments, estimates and assumptions are based on historical experiences of the
Company's management as well as other factors that are considered to be relevant. Actual results
may differ from these estimates.
The Company regularly reviews the judgments, estimates and assumptions on a going concern
basis. Changes in accounting estimates which only affect the current period should be recognized
in current period; changes which not only affect the current but the future periods should be
recognized in current and future periods. At the balance sheet date, key assumptions and
uncertainties that are likely to lead to significant adjustments to the book values of assets and
liabilities in the future are:
Goodwill impairment
For the purpose of impairment testing, the present value of the expected future cash flows of the
assets group or portfolio including goodwill shall be calculated, and such expected future cash
flows shall be estimated. Meantime, a pre-tax rate shall be determined that should reflect the time
value of money on the current market and the specific asset risks.
Recognition of deferred tax
The Group calculates and makes provision for deferred income tax liabilities according to the
profit distribution plan of subsidiaries, associates and the joint ventures subject to the related law.
For retained earnings which are not allocated by the investment company, since the profits will be
used to invest the company's daily operation and future development, no deferred income tax
liabilities are recognized. If the actually distributed profits in the future are more or less than those
expected, corresponding deferred tax liabilities will be recognized or reversed at the earlier of
profits distribution date and the declaration date, in the profit and loss of the current period.
Deferred tax assets are recognized based on the deductible temporary difference and the
corresponding tax rate, to the extent that it has become probable that future taxable profit will be
available for the deductible temporary difference. If in the future the actual taxable income does
not coincide with the amount currently expected, the deferred tax assets resulting will be
recognized or reversed in the period when actually incurred, in profit or loss.
- 39 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(V) TAXES
1. Major taxes and tax rates
Taxes Tax basis Tax rate
Enterprise income tax Taxable income 25%
Load and unload income, tugboat income, trailer income,
6% (Note 1)
warehousing income and agency income
Taxable income from vehicle maintenance and utilities supplies
Value-add Tax 13% and17%
on ships in shore
Taxable income from sales of scraps and rental income from
3%
tangible property
Taxable rental income from intangible property and labor
Business tax 5%
dispatching income
Urban maintenance and 5% and 7 %
VAT and Business tax paid
construction tax (Note 2)
Education surplus VAT and Business tax paid 3%
Regional education surplus VAT and Business tax paid 2%
Entities using different enterprise income tax rate:
Name of entity Enterprise income tax rate
Chiwan Wharf Holdings (HK) Limited 16.5%
Chiwan Shipping (HK) Company Limited 16.5%
- 40 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(V) TAXES - continued
1. Major taxes and tax rates - continued
Note 1: According to the Notice on Taxable Services Subject to "VAT" Tax Rate of Zero and
Exemption issued by the Ministry of Finance and State Administration of Taxation (filed
as Cai Shui [2011] No.131), and approvals released by Shekou National Taxation Bureau
in Shenzhen (filed as Jian Mian Bei [2012] No.0686, No.0693, No.0834 and .Jian Mian
Bei [2013] No.0136 respectively), Chiwan Container Terminal Company Limited,
Shenzhen Chiwan Harbor Container Company Limited and Shenzhen Chiwan Tugboat
Company Limited, Shenzhen Chiwan International Freight Agency Company Limited, the
subsidiaries of the Company, are exempt from "VAT" when providing logistics support
service (except for warehousing service).
Note 2: The subsidiaries set up in Shenzhen are subject to an urban maintenance and construction
tax rate of 7%, and those set up in Dongguan are subject to an urban maintenance and
construction tax rate of 5%.
2. Tax preference
On 21 February 2012, Machong Branch of National Taxation Bureau in Dongguan City approved
that Dongguan Chiwan Wharf Co., Ltd (DGW), a subsidiary of the Group, was subjected to tax
preference of "3-year exemption followed by 3-year half reduction" commencing from 2010.
2015 is its third year with tax preference of half reduction; hence, DGW has calculated its income
tax at a rate of 12.5% (2014: 12.5%).
On 8 July 2014, Machong Branch of National Taxation Bureau in Dongguan City approved that
Dongguan Chiwan Terminal Co., Ltd (DGT), a subsidiary of the Group, was subjected to tax
preference of "3-year exemption followed by 3-year half reduction" commencing from 2014.
2015 is the second year of exemption; hence, DGT is exempted from income tax in 2015 (2014:
Exempted from income tax).
According to Doc. [2013] No.3 issued by Shekou Local Taxation Bureau In Shenzhen, the profits
derived from berth #13A of Shenzhen Chiwan Harbour Container Company Limited(CHCC), is
entitled to tax preference of "3-year exemption followed by 3-year half reduction" commencing
from 1 January 2012. 2015 is the forth profit-making year of berth #13A; hence, CHCC has
calculated its income tax at a rate of 12.5%(2014: Exempted from income tax).
Chiwan Container Terminal Co., Ltd., a subsidiary of the Group, has been recognized as a state-
level hi-tech enterprise (license No.: GR201444201516) for a term of three years since 2014 upon
the approval from the Technological Innovation Commission of Shenzhen Municipality, the
Finance Commission of Shenzhen Municipality, the Shenzhen Municipal Office of the State
Administration of Taxation and the Shenzhen Local Taxation Bureau as well as upon the further
approval from the National Ministry of Science and Technology, the National Ministry of Finance
and the State Administration of Taxation. With 2015 being the second accounting year of the hi-
tech enterprise term, Chiwan Container Terminal Co., Ltd. enjoys a preferential corporate income
tax rate of 15%.
- 41 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Currency Funds
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Exchange Exchange
Item Original currency rate Amount in RMB Original currency rate Amount in RMB
Cash:
RMB 10,618.14 1.0000 10,618.14 9,981.65 1.0000 9,981.65
USD 71.00 6.1136 434.07 71.00 6.1190 434.45
HKD 848.60 0.7886 669.21 983.70 0.7889 776.04
Subtotal 11,721.42 11,192.14
Bank deposit:
RMB 202,972,649.13 1.0000 202,972,649.13 330,799,996.02 1.0000 330,799,996.02
USD 1,426,273.56 6.1136 8,719,666.04 6,764,220.95 6.1190 41,390,267.99
HKD 122,219,395.46 0.7886 96,382,215.27 119,150,317.66 0.7889 93,997,685.60
Subtotal 308,074,530.44 466,187,949.61
Other currency funds
(Note)
RMB 86,424.36 1.0000 86,424.36 2,436,344.72 1.0000 2,436,344.72
USD - 6.1136 - - 6.1190 -
HKD - 0.7886 - - 0.7889 -
Subtotal 86,424.36 2,436,344.72
Total 308,172,676.22 468,635,486.47
Note: The balance of other currency funds is mainly the amount deposited in the securities
settlement account of China Merchants Securities Co., Ltd.
2. Notes receivable
Unit: RMB
Category 30 Jun. 2015 31 Dec. 2014
Bank acceptance bills - 2,500,000.00
3. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Carrying amount Bad debt provision Carrying amount Bad debt provision
Proportion Proportion Proportion Proportion
Item Amount (%) Amount (%) Book value Amount (%) Amount (%) Book value
Accounts receivable that
are individually
significant and for which
- - - - - - - - - -
bad debt provision has
been assessed
individually
Accounts receivable for which bad debt provision has been assessed by credit risk portfolios
Portfolio 1 20,352,907.81 8.72 - - 20,352,907.81 9,713,134.41 4.76 - - 9,713,134.41
Portfolio 2 213,109,108.27 91.28 476,174.35 0.22 212,632,933.92 194,290,803.68 95.24 361,993.47 0.19 193,928,810.21
Subtotal of portfolios 233,462,016.08 100.00 476,174.35 0.20 232,985,841.73 204,003,938.09 100.00 361,993.47 0.18 203,641,944.62
Accounts receivable that
are not individually
significant but for which
- - - - - - - - - -
bad debt provision has
been assessed
individually
Total 233,462,016.08 100.00 476,174.35 0.20 232,985,841.73 204,003,938.09 100.00 361,993.47 0.18 203,641,944.62
- 42 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
3. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued
Accounts receivable portfolios for which bad debt provision has been assessed using the
aging analysis approach:
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Bad debt Proportion Carrying Bad debt Proportion
Aging Carrying amount provision (%) Book value amount provision (%) Book value
Within 1 year 212,203,758.27 10,496.35 0.00 212,193,261.92 193,242,566.45 109,535.22 0.06 193,133,031.23
More than 1 year
12,320.00 2,464.00 20.00 9,856.00 964,041.23 192,808.25 20.00 771,232.98
but not exceeding 2 years
More than 2 years
859,632.00 429,816.00 50.00 429,816.00 49,092.00 24,546.00 50.00 24,546.00
but not exceeding 3 years
More than 3 years 33,398.00 33,398.00 100.00 - 35,104.00 35,104.00 100.00 -
Total 213,109,108.27 476,174.35 0.22 212,632,933.92 194,290,803.68 361,993.47 0.19 193,928,810.21
(2) Aging of accounts receivable
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Carrying Proportion Bad debt Carrying Proportion Bad debt
Aging amount (%) provision Book value amount (%) provision Book value
Within 1 year 232,556,666.08 99.61 10,496.35 232,546,169.73 202,955,700.86 99.49 109,535.22 202,846,165.64
More than 1 year
12,320.00 0.01 2,464.00 9,856.00 964,041.23 0.47 192,808.25 771,232.98
but not exceeding 2 years
More than 2 years
859,632.00 0.37 429,816.00 429,816.00 49,092.00 0.02 24,546.00 24,546.00
but not exceeding 3 years
More than 3 years 33,398.00 0.01 33,398.00 - 35,104.00 0.02 35,104.00 -
Total 233,462,016.08 100.00 476,174.35 232,985,841.73 204,003,938.09 100.00 361,993.47 203,641,944.62
(3) Top five balances of accounts receivable
Unit: RMB
Proportion of the
amount to the total
Relationship with accounts receivable
Name of customer the Company Amount (%) Bad debt provision
Customer A Customer 45,525,938.52 19.50 39,167.35
Customer B Customer 18,543,296.62 7.94 -
Customer C Customer 15,291,146.24 6.55 -
Customer D Customer 12,161,815.87 5.21 -
Customer E Customer 12,087,001.03 5.18 212.00
Total 103,609,198.28 44.38 39,379.35
(4) Increase, reverse and write-off of bad debt provision
Unit: RMB
Decrease
Item 31 Dec. 2014 Increase Reversal Write-off 30 Jun. 2015
Accounts receivable 361,993.47 114,180.88 - - 476,174.35
(5) As at 30 June 2015, no balances included in above accounts receivable are due from the
shareholders of the Company who hold over 5% voting right. Please see Note (XI) 6 for
receivables from related parties.
- 43 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Prepayments
(1) Prepayments presented by aging
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Item Amount Proportion (%) Amount Proportion (%)
Within 1 year 941,661.40 100.00 1,884,932.73 94.96
More than 1 year
- - 100,000.00 5.04
but not exceeding 2 years
Total 941,661.40 100.00 1,984,932.73 100.00
(2) Top five balances of prepayments
Unit: RMB
Proportion of
the amount to
the total
Relationship with accounts
Name of Supplier the Company Amount receivable (%)
Chinese People's Property Insurance Co., Ltd. Shenzhen
Supplier 512,694.33 54.45
Branch Merlin branch
Beijing Aaopeng Science and Technology Development
Supplier 175,000.00 18.58
Co., Ltd.
Shenzhen Port China Travel Service Co., Ltd. Supplier 110,112.00 11.69
International Insurance Dept. of the Guangdong branch of
Supplier 90,321.96 9.59
PICC Property and Casualty Co., Ltd.
Rolls-Royce Marine (Shanghai) Limited Supplier 16,107.21 1.71
Total 904,235.50 96.03
(3) The Group has no significant aging over one year prepayment.
(4) As at 30 June 2015, no balances included in above prepayments are due from the shareholders
of the Company who hold over 5% voting right.
5. Interest receivable
(1) Interest receivable
Unit: RMB
Category 30 Jun. 2015 31 Dec. 2014
Fixed term deposit 56,147.20 183,213.50
(2) The Group has no significant overdue interest.
- 44 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
6. Dividends receivable
(1) Dividends receivable
Unit: RMB
Impairment
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015 appeared or not
China Overseas Harbor Affairs
- 30,785,676.52 30,785,676.52 - No
(Laizhou) Co., Ltd.
Jiang Su Ninghu Expressway Company
- 380,000.00 - 380,000.00 No
Limited
Total - 31,165,676.52 30,785,676.52 380,000.00
(2) The Group has no dividends receivable aging more than one year.
7. Other receivables
(1) Disclosure of other receivables by categories:
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Carrying amount Bad debt provision Carrying amount Bad debt provision
Proportion Proportion Proportion Proportion
Category Amount (%) Amount (%) Book value Amount (%) Amount (%) Book value
Other receivables that are
individually significant and
for which bad debt provision - - - - - - - - - -
has been assessed
individually
Other receivables for which bad debt provision has been assessed by credit risk portfolios
Portfolio 1 22,216,081.66 53.74 100,000.00 0.45 22,116,081.66 25,553,830.02 59.68 100,000.00 0.39 25,453,830.02
Portfolio 2 19,122,783.07 46.26 433,807.94 2.27 18,688,975.13 17,261,884.10 40.32 394,711.39 2.29 16,867,172.71
Subtotal of portfolios 41,338,864.73 100.00 533,807.94 1.29 40,805,056.79 42,815,714.12 100.00 494,711.39 1.16 42,321,002.73
Other receivables that are not
individually significant but
for which bad debt provision - - - - - - - - - -
has been assessed
individually
Total 41,338,864.73 100.00 533,807.94 1.29 40,805,056.79 42,815,714.12 100.00 494,711.39 1.16 42,321,002.73
Other receivables portfolios for which bad debt provision has been assessed using the aging
analysis
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Bad debt Proportion Bad debt Proportion
Aging Carrying amount provision (%) Book value Carrying amount provision (%) Book value
Within 1 year 18,555,483.36 12,354.78 0.07 18,543,128.58 16,867,331.00 9,035.49 0.05 16,858,295.51
More than 1 year
179,750.00 35,950.00 20.00 143,800.00 11,096.50 2,219.30 20.00 8,877.20
but not exceeding 2 years
More than 2 years
4,093.11 2,046.56 50.00 2,046.56 - - - -
but not exceeding 3 years
More than 3 years 383,456.60 383,456.60 100.00 - 383,456.60 383,456.60 100.00 -
Total 19,122,783.07 433,807.94 2.27 18,688,975.13 17,261,884.10 394,711.39 2.29 16,867,172.71
- 45 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
(2) Aging of other receivables
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Proportion Bad debt Carrying Proportion Bad debt
Aging Carrying amount (%) provision Book value amount (%) provision Book value
Within 1 year 36,560,177.19 88.44 12,354.78 36,547,822.41 36,877,560.35 86.13 9,035.49 36,868,524.86
More than 1 year
213,867.26 0.52 35,950.00 177,917.26 111,311.71 0.26 2,219.30 109,092.41
but not exceeding 2 years
More than 2 years
12,120.11 0.03 10,073.56 769,684.50 1.80 - 769,684.50
but not exceeding 3 years 2,046.56
More than 3 years 4,552,700.17 11.01 483,456.60 4,069,243.57 5,057,157.56 11.81 483,456.60 4,573,700.96
Total 41,338,864.73 100.00 533,807.94 40,805,056.79 42,815,714.12 100.00 494,711.39 42,321,002.73
(3) Disclosure of other receivables by nature
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Temporary payments 18,052,771.12 21,840,184.60
Deposits 6,763,649.65 6,363,552.37
Others 16,522,443.96 14,611,977.15
Total 41,338,864.73 42,815,714.12
(4) Top five balances of other receivables
Unit: RMB
Proportion of the
amount to the total Bad debt
Name of company Nature of the fund Amount Aging accounts receivable (%) provision
Dongguan Municipal
Others 12,175,000.00 Within one year 29.45 -
Finance Bureau
Shenzhen Mawan Temporary payments
10,656,205.04 Within one year 25.78 -
Terminals Co., Ltd. from related parties
Temporary payments
CMBL 2,467,672.00 Within one year 5.97 -
from related parties
Shenzhen Mawan Port Temporary payments
1,157,893.12 Within one year 2.80 -
Co., Ltd. from related parties
Mediterranean Shipping
Company (Hong Kong) Temporary payments 1,151,435.69 Within one year 2.79 -
Limited
Total 27,608,205.85 66.79 -
(5) Increase, reverse and write-off of bad debt provision
Unit: RMB
Decrease Translate
foreign currency
Item 31 Dec. 2014 Increase Reversal Write-off statements 30 Jun. 2015
Other receivable 494,711.39 48,340.61 9,244.06 - - 533,807.94
(6) As at 30 June 2015, no balances included in above other receivables are due from the
shareholders of the Company who hold over 5% voting right except that from the Nanshan Group.
Please see Note (XI) 6 for receivables from Nanshan Group and other related parties.
- 46 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
8. Inventories
(1) Categories of inventories
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Provision for Provision for
decline in value of decline in value of
Item Carrying amount inventories Book value Carrying amount inventories Book value
Spare parts 19,399,339.18 972,744.93 18,426,594.25 18,866,392.87 972,744.93 17,893,647.94
Fuel 932,015.47 - 932,015.47 1,196,520.67 - 1,196,520.67
Low value consumables - - - - - -
Total 20,331,354.65 972,744.93 19,358,609.72 20,062,913.54 972,744.93 19,090,168.61
(2) Provision for decline in value of inventories
Unit: RMB
Decrease
Item 31 Dec. 2014 Increase Reversal Write-off 30 Jun. 2015
Spare parts 972,744.93 - - - 972,744.93
9、Other current assets
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Added-value tax to be certified and deducted 11,432,546.10 16,893,412.98
10. Available-for-sale financial assets
(1) Available-for-sale financial assets
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Carrying Provision for Carrying Provision for
Item amount impairment Book value amount impairment Book value
Available-for-sale cost of equity
26,717,500.00 3,128,300.00 23,589,200.00 24,337,500.00 3,128,300.00 21,209,200.00
instruments
Measured at fair value 9,680,000.00 - 9,680,000.00 7,300,000.00 - 7,300,000.00
Measured at cost 17,037,500.00 3,128,300.00 13,909,200.00 17,037,500.00 3,128,300.00 13,909,200.00
Total 26,717,500.00 3,128,300.00 23,589,200.00 24,337,500.00 3,128,300.00 21,209,200.00
(2) Available-for-sale financial assets measured at fair value at 30 June 2015
Unit: RMB
Available-for-sale
Classification of available-for-sale financial assets equity instruments
Cost of equity instruments 1,120,000.00
Fair value 9,680,000.00
Accumulated amount of changes in fair value included in the other comprehensive income 8,560,000.00
Provision amount for impairment -
Note: The available-for-sale financial assets held by the Company represent the fair value of the
circulating shares of Jiang Su Ninghu Expressway Company Ltd 30 June 2015.
- 47 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
10. Available-for-sale financial assets - continued
(3) Available-for-sale financial assets measured at cost 30 June 2015
Unit: RMB
Carrying amount Provision for impairment Proportion of Cash
ownership dividends
interests in the for the
Investees 31 Dec. 2014 Increase Decrease 30 Jun. 2015 31 Dec. 2014 Increase Decrease 30 Jun. 2015 investee (%) period
Shenzhen Petro-chemical
Industry (Group) Company 3,500,000.00 3,500,000.00 3,117,800.00 3,117,800.00 0.26
- - - -
Limited
Guangdong Guang Jian
27,500.00 - - 27,500.00 10,500.00 - - 10,500.00 0.02
Group Company Limited
China Ocean Shipping
Agency (Shenzhen) 13,510,000.00 - - 13,510,000.00 - - - - 15.00
Company Limited
Total 17,037,500.00 - - 17,037,500.00 3,128,300.00 - - 3,128,300.00 -
Note: The available-for-sale financial assets measured at cost are equity investments of Shenzhen
Petro-chemical Industry (Group) Company Limited, Guangdong Guang Jian Group
Company Limited and China Ocean Shipping Agency (Shenzhen) Company Limited. None
of the stocks of above-mentioned companies are traded in market or fair value could be
measured reliably, hence, the Group measures these equity investments under cost method.
(4) Movements of available-for-sale financial assets in the reporting period
Unit: RMB
Available-for-sale equity
Category instruments
Provision amount for impairment at the beginning of the year 3,128,300.00
Increase in the current period -
Decrease in the current period -
Provision amount for impairment at 30 June 2015 3,128,300.00
- 48 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term equity investments
Unit: RMB
Changes
Reconciling
Investment items from
profit or loss other Cash dividends Provision Closing value of
Accounting under equity comprehensive Other equity announced of for provision for
Investee method Investment cost 31 Dec. 2014 Increase Decrease method income movements issuance impairment Others 30 Jun. 2015 impairment
I. Joint ventures
China Overseas Harbor Affairs
Equity method 749,655,300.00 761,613,322.04 - - 23,873,557.00 - - 30,785,676.52 - - 754,701,202.52 -
(Laizhou) Co., Ltd.(Note 1)
II. Associates
China Merchants Holdings
(International) Information Technology Equity method 1,875,000.00 14,654,011.40 - - 440,040.00 - - - - - 15,094,051.40 -
C Ld
CMBL Equity method 280,000,000.00 312,082,144.78 - - 3,864,439.94 - - - - - 315,946,584.72 -
MediaPortInvestmentsLimited("MPIL")
Equity method 139,932.00 299,788,762.52 - - 17,488,986.85 - - - - - 317,277,749.37 -
(Note 2)
China Development Finance Co., Ltd. Equity method 100,000,000.00 105,202,034.31 - - 2,787,973.53 - - - - - 107,990,007.84 -
Subtotal 382,014,932.00 731,726,953.01 - - 24,581,440.32 - - - - - 756,308,393.33 -
Total 1,131,670,232.00 1,493,340,275.05 - - 48,454,997.32 - - 30,785,676.52 - - 1,511,009,595.85 -
Note 1: The Company holds 40% equity interests in China Overseas Harbor Affairs (Laizhou) Co., Ltd. (hereinafter "COHA (Laizhou)"). According
to the investment agreement with shareholders of COHA (Laizhou) and its constitutions, significant matters such as operating decisions can
be passed only when approved by directors of the Company and the other ventures. Therefore, COHA (Laizhou) is deemed to be under
common control of Chiwan Wharf and the other shareholders; accordingly COHA (Laizhou) is accounted for as a joint venture.
Note 2: On 30 September 2002, China Merchants Holdings (International) Company Limited (the "CMHI", a listed company in Hong Kong) and
Shenzhen South Oil (Group) Company Limited (the "SSOG") entered into an agreement called "Agreement on Cooperation and
Development of Mawan Port" (the "Development Agreement") to incorporate three joint ventures, namely SMW, SMP and Shenzhen
Mawan Terminals Co., Ltd. ("SMT") (together referred to as "Mawan Companies"), to construct and operate the berth 0#, 5#, 6#, 7# and 8#
in Mawan Port. According to the Development Agreement, CMHI and the Group will jointly set up Media Port Investments Limited (the
"MPIL") with equal percentage of equity held respectively. MPIL then incorporates the abovementioned three joint ventures together with
SSOG, and MPIL has 60% equity in each of the three joint ventures.
- 49 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Investment properties
(1) Investment properties measured under cost method
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
I. Total original carrying amount 65,028,138.00 3,276,838.39 1,425,200.00 66,879,776.39
1. Buildings 33,519,173.00 3,276,838.39 - 36,796,011.39
2. Land use right 31,508,965.00 - 1,425,200.00 30,083,765.00
II. Total accumulated depreciation and
33,996,198.55 814,204.98 1,425,200.00 33,385,203.53
amortization
1. Buildings 18,496,095.59 525,137.53 - 19,021,233.12
2. Land use right 15,500,102.96 289,067.45 1,425,200.00 14,363,970.41
III. Total net book value of investment
31,031,939.45 33,494,572.86
property
1. Buildings 15,023,077.41 17,774,778.27
2. Land use right 16,008,862.04 15,719,794.59
IV. Total accumulated amount of
provision for impairment losses of - - - -
investment property
1. Buildings - - - -
2. Land use right - - - -
V. Total carrying value of investment
31,031,939.45 33,494,572.86
property
1. Buildings 15,023,077.41 17,774,778.27
2. Land use right 16,008,862.04 15,719,794.59
Note: Depreciation and amortization for the current period is RMB 814,204.98.
(2) Investment properties without ownership certificates
As of 30 June 2015, the Group has not obtained any ownership certificates of investment
properties. Please see the Note (VI) 15 for the reasons and management countermeasures.
- 50 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
13. Fixed assets
(1) Fixed assets
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
I. Total original carrying amount 5,456,487,930.26 5,721,699.19 4,303,930.28 5,457,905,699.17
Including: Port and terminal facilities 1,964,933,409.57 2,108,028.31 - 1,967,041,437.88
Container yards and
1,015,842,646.42 (1,861,783.50) 1,755,549.39 1,012,225,313.53
buildings
Mechanical equipment 2,053,341,346.04 4,018,831.55 2,054,384.74 2,055,305,792.85
Motor vehicles, cargo ships
299,281,377.32 806,330.36 453,200.00 299,634,507.68
and tugboats
Other equipment 123,089,150.91 650,292.47 40,796.15 123,698,647.23
II. Total accumulated depreciation 2,075,949,277.19 100,505,346.54 2,624,695.10 2,173,829,928.63
Including: Port and terminal facilities 388,113,614.13 19,942,214.65 - 408,055,828.78
Container yards and
234,896,097.66 11,733,261.35 224,128.99 246,405,230.02
buildings
Mechanical equipment 1,207,206,921.85 58,253,431.09 2,052,511.06 1,263,407,841.88
Motor vehicles, cargo ships
155,607,578.23 6,817,269.45 313,392.00 162,111,455.68
and tugboats
Other equipment 90,125,065.32 3,759,170.00 34,663.05 93,849,572.27
III. Total net book value of fixed assets 3,380,538,653.07 3,284,075,770.54
Including: Port and terminal facilities 1,576,819,795.44 1,558,985,609.10
Container yards and
780,946,548.76 765,820,083.51
buildings
Mechanical equipment 846,134,424.19 791,897,950.97
Motor vehicles, cargo ships
143,673,799.09 137,523,052.00
and tugboats
Other equipment 32,964,085.59 29,849,074.96
IV. Total provision for impairment
60,695,381.41 - - 60,695,381.41
losses
Including: Port and terminal facilities 7,537,511.93 - - 7,537,511.93
Container yards and
53,157,869.48 - - 53,157,869.48
buildings
Mechanical equipment - - - -
Motor vehicles, cargo ships
- - - -
and tugboats
Other equipment - - - -
V. Total carrying value of fixed assets 3,319,843,271.66 3,223,380,389.13
Including: Port and terminal facilities 1,569,282,283.51 1,551,448,097.17
Container yards and
727,788,679.28 712,662,214.03
buildings
Mechanical equipment 846,134,424.19 791,897,950.97
Motor vehicles, cargo ships
143,673,799.09 137,523,052.00
and tugboats
Other equipment 32,964,085.59 29,849,074.96
Note 1: New acquisition of fixed assets during the period amounted to RMB5,157,513.96 and
construction in progress transferred to fixed assets during the period was RMB
（236,434.86）, which composed the total increase in original carrying amount. Disposal
of fixed assets during the period amounted to RMB489,258.29, which composed the total
decrease in original carrying amount.
- 51 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
13. Fixed assets - continued
(1) Fixed assets - continued
Note 2: Of the increase in accumulated depreciation, depreciation of RMB100,505,346.54 was
made during the period. And decrease in accumulated depreciation during the period was
composed of RMB347,912.39, resulted from disposal of fixed assets .
Note 3: As of 30 June 2015, there are no fixed assets that are used as collateral.
Note 4: As of 30 June 2015, ownership certificates for certain buildings of the Group with net
book value of RMB290,713,857.90 (cost: RMB399,252,693.46) have not yet been
obtained. Among them, fixed assets with net book value of RMB31,399,474.34 (cost:
RMB119,204,302.62) are located within the scope of Chiwan watershed. Please refer to
Note (VI) 15 for the reasons and management countermeasures; the ownership certificate
for the remainder is under the process of application.
(2) Other issues
Unit: RMB
Item Amount Note
The original amounts of fixed assets fully depreciated but still in use at 30
644,775,256.64
June 2015
Closing original amount of temporary idle fixed assets
Fixed assets disposed or scrapped in the current year
Original amount of fixed assets disposed or scrapped in the current year 489,258.29
Net book value of fixed assets disposed or scrapped in the current year 141,345.90
Gain or loss on disposal or scrap of fixed assets (54,508.30)
14. Construction in progress
(1) Construction in progress is as follows
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Provision for Provision for
Item Carrying amount impairment Book value Carrying amount impairment Book value
Mechanized Flat warehouse 23,756,917.15 - 23,756,917.15 14,216,401.54 - 14,216,401.54
Hydraulic structure
engineering of Berth 4#-5#, 4,993,524.28 - 4,993,524.28 4,968,524.28 - 4,968,524.28
Machong Port
Others 23,171,637.48 - 23,171,637.48 15,397,443.63 - 15,397,443.63
Total 51,922,078.91 - 51,922,078.91 34,582,369.45 - 34,582,369.45
- 52 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
14. Construction in progress - continued
(2) Changes in significant construction in progress
Unit: RMB
Proportion of Amount of Including: Interest
Transfer to fixed accumulated accumulated capitalised capitalisation
Budget and intangible construction Construction capitalised interest for the rate for the Capital
Item amount 31 Dec. 2014 Increase assets Decrease 30 Jun. 2015 investment in budget progress interest period period (%) source
Self-
Mechanized Flat warehouse 38,931,326.50 14,216,401.54 9,611,549.50 71,033.89 - 23,756,917.15 61.21% 61.21% 115,474.47 112,363.36 5.35% Funding
and loan
Hydraulic structure engineering of Self-
8,819,228.81 4,968,524.28 25,000.00 - - 4,993,524.28 56.62% 56.62% - - -
Berth 4#-5#, Machong Port Funding
Self-
Others 69,574,419.10 15,397,443.63 7,768,525.10 (307,468.75) 301,800.00 23,171,637.48 33.30% 33.30% - - -
Funding
Total 117,324,974.41 34,582,369.45 17,405,074.60 (236,434.86) 301,800.00 51,922,078.91 115,474.47 112,363.36
- 53 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Intangible assets
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
I. Total original carrying amount 1,507,125,392.66 135,552,094.31 2,178,418.00 1,640,499,068.97
Land use rights - prepaid under lease - -
(Note 2) 1,237,013,503.76 1,237,013,503.76
Land use rights - prepaid under - -
investment (Note 2) 122,623,476.00 122,623,476.00
Land use rights - purchased 41,150,418.28 75,552,094.31 - 116,702,512.59
Computer software 33,451,857.62 - 2,178,418.00 31,273,439.62
Sea area use rights 72,886,137.00 - - 72,886,137.00
Shore line use rights - 60,000,000.00 - 60,000,000.00
II. Total accumulated amortization 557,103,807.56 19,613,811.22 2,178,418.00 574,539,200.78
Land use rights - prepaid under lease -
(Note 2) 467,553,650.97 15,150,574.30 482,704,225.27
Land use rights - prepaid under -
investment (Note 2) 54,976,191.74 1,226,234.76 56,202,426.50
Land use rights - purchased 4,089,392.68 1,193,113.08 - 5,282,505.76
Computer software 22,589,134.97 850,301.96 2,178,418.00 21,261,018.93
Sea area use rights 7,895,437.20 731,080.20 - 8,626,517.40
Shore line use rights - 462,506.92 - 462,506.92
III. Total net book value of intangible assets 950,021,585.10 1,065,959,868.19
Land use rights - prepaid under lease
(Note 2) 769,459,852.79 754,309,278.49
Land use rights - prepaid under
investment (Note 2) 67,647,284.26 66,421,049.50
Land use rights - purchased 37,061,025.60 111,420,006.83
Computer software 10,862,722.65 10,012,420.69
Sea area use rights 64,990,699.80 64,259,619.60
Shore line use rights 59,537,493.08
IV. Total provision for impairment - - - -
Land use rights - prepaid under lease - - - -
Land use rights - prepaid under - - - -
investment
Land use rights - purchased - - - -
Computer software - - - -
Sea area use rights - - - -
Shore line use rights - - - -
V. Total carrying value of intangible assets 950,021,585.10 1,065,959,868.19
Land use rights - prepaid under lease
(Note 2) 769,459,852.79 754,309,278.49
Land use rights - prepaid under
investment (Note 2) 67,647,284.26 66,421,049.50
Land use rights - purchased 37,061,025.60 111,420,006.83
Computer software 10,862,722.65 10,012,420.69
Sea area use rights 64,990,699.80 64,259,619.60
Shore line use rights - 59,537,493.08
Note 1: Amortization for the current period is RMB19,613,811.22.
- 54 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
15. Intangible assets - continued
Note 2: The Group has obtained the land use right from Nanshan Group in connection with
several plots of land with a total area of 1,049,946.00 square meters within Chiwan port
for a use term ranging between 20 - 50 years with original amount of
RMB1,400,288,984.00. The lands are located within the scope of Chiwan watershed,
comprising of a land of 2.2 square kilometers invested by Shenzhen Investment Holding
Corporation, a stockholder of Nanshan Group, and a land arising from marine reclamation
by Nanshan Group.
An area of 270,692 sq. meters (RMB122,623,476.00) was injected by Nanshan Group as
capital contribution at the moment of corporate restructuring. The rest land use right was
obtained from Nanshan Group by long-term leasing.
Until now, no official certificates for above lands were obtained by Nanshan Group.
Correspondingly, the buildings located on such lands have not obtained relevant real
estate certificates.
On 20 March 2001, 18 June 2003 and 29 September 2004, Nanshan Group committed on
all the land use right obtained by the Group from it. Per the commitment, Nanshan Group
has no right to withdraw and will agree in any condition that, when the Group suffers
loss, bears expense and liability, is claimed for compensation or runs into lawsuit, caused
by any actually or potentially illegal and unconductable issues generated by land use right
agreements and their relevant documents, signed or will be signed by Nanshan Group,
Nanshan group will guarantee that the acquiring party and its inheritor of those land use
right will be fully exempted from above issues mentioned. Based on the situations above,
directors of the Company believe there is no significant impairment risk to be caused by
the absence of land use right certificate and no significant contingency exists.
The management is aware that Nanshan Group is active in process of resolving the
historical problem with relevant government department; however, it cannot predict the
exact time of obtaining legal certificates of land and relevant real estate certificates.
The land use right agreement with an area of 79,861.40sq. meters (original carrying
amount: RMB51,604,409.24) was expired on 30 April 2014. Except for land with an area
of 6,118.50 square meters ( 8 # storeroom) , the remaining land has been subjected to
continue renting, but the land contract is under way.
At 30th September 2014 , land with an area of 9,897.70sq. meters mentioned above
(original carrying amount: RMB7,918,160.00) is part of land of Chiwan Village which
was required by the government to return to Shenzhen Chiwan Shekou Industrial Co., Ltd.
Therefore, the above-mentioned land use rights lease agreements terminated in advance
and reclaimed by Nanshan Group.
- 55 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
16. Goodwill
Unit: RMB
Investee 31 Dec. 2014 Increase Decrease 30 Jun. 2015
Chiwan Container Terminal
10,858,898.17 - - 10,858,898.17
Company Limited
Note: The goodwill arose from the acquisition of the minority interests in Chiwan Container
Terminal Company Limited, being the difference of the additional cost of investment and
the Group's share of the fair value of the identifiable net assets in Chiwan Container
Terminal Company Limited. Based on past years operation relating to these assets groups
and the forecast of the Company, the management holds the opinion that these is no need to
allocate impairment to goodwill arising from Chiwan Container Terminal Company
Limited investment.
17. Long-term prepaid expenses
Unit: RMB
Residual
useful
Item 31 Dec. 2014 Increase Amortization Other reductions 30 Jun. 2015 Original Cost period
Construction expenditure of
56,543,474.43 - 993,063.60 - 55,550,410.83 69,514,455.56 28 years
Tonggu sea-route (Note )
Golf membership 1,243,731.62 - 124,439.52 - 1,119,292.10 2,443,549.00 1 - 7 years
Building decoration 290,039.80 - 259,996.79 - 30,043.01 2,214,040.47 1 years
Total 58,077,245.85 - 1,377,499.91 - 56,699,745.94 74,172,045.03
Note 1: In 2007, Shenzhen municipal government commenced the construction work of the
public sea route connecting Tonggu sea route, Shekou port area, Chiwan port area,
Mawan port area, Qianhaiwan port area and Dachanwan port area ("Tonggu Sea Route").
As required by a decision by the government, 60% of construction expenditure would be
allocated to the port operators while the remaining 40% born by the government. The
port operators in Western Shenzhen port areas were allocated 35% of the total
expenditure, and subsequently agreed the portion to each operator, taking into account
the factors including the function, waterfront length, berthing ship of each porter etc.
The total expenditure of RMB64,560,000.00 was allocated to the Group and accounted
for as long-term prepaid expenses, being amortized on a straight-line basis over 35 years
which is the expected useful lives of Tonggu Sea Route starting from 2008 when the
Tonggu Sea Route is ready for use.
Added construction expenditure with an amount of RMB 29,726,733.33 was allocated to
the Group in 2014, RMB 24,772,277.77 of which was allocated against special payables
and RMB 4,954,455.56 of which was recognized as long-term prepaid expenses
amortized within the remaining useful lives of Tonggu Sea Route.
- 56 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
18. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets that are presented at the amount without offsetting
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Deductible temporary Deductible temporary
Item differences Deferred tax assets differences Deferred tax assets
Provision for impairment losses of
4,721,905.64 1,172,391.76 62,141,374.60 15,527,259.00
assets
Depreciation of fixed assets and
151,714.28 37,928.57 151,714.27 37,928.57
amortization of intangible assets
Deductible losses - - - -
Accrued expenses - - 20,583,566.32 4,584,505.56
Pre-operational expenses 29,748,694.69 4,790,028.26 29,748,694.69 4,790,028.26
Others 32,610,372.90 5,112,037.39 32,625,205.59 5,115,745.53
Total 67,232,687.51 11,112,385.98 145,250,555.47 30,055,466.92
(2) Deferred tax liabilities that are presented at the net amount without offsetting
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Deductible temporary Deductible temporary
Item differences Deferred tax assets differences Deferred tax assets
Depreciation of fixed assets and
- - 12,454,428.92 3,113,607.20
amortization of intangible assets
Change in fair value of available-for-
8,560,000.00 2,140,000.00 6,180,000.00 1,545,000.00
sale financial assets
Total 8,560,000.00 2,140,000.00 18,634,428.92 4,658,607.20
(3) Deferred tax assets or liabilities that are presented at the net amount after offsetting
Unit: RMB
Closing amount of Closing amount of Opening amount of Opening amount of
deferred tax assets and deferred tax assets or deferred tax assets and deferred tax assets or
liabilities that are liabilities after liabilities that are liabilities after
Item offset offsetting offset offsetting
Deferred tax assets - 11,112,385.98 3,113,607.20 26,941,859.72
Deferred tax liabilities - 2,140,000.00 3,113,607.20 1,545,000.00
(4) Details of unrecognized deferred tax assets
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Deductible temporary differences 130,499,699.72 83,413,757.90
Deductible losses 187,531,220.19 187,859,648.89
Total 318,030,919.91 271,273,406.79
Note: Deferred tax assets are not recognized for the above-mentioned deductible temporary
differences and deductible losses due to uncertainty on whether sufficient taxable profits
will be available in the future.
- 57 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
18. Deferred tax assets and deferred tax liabilities- continued
(5) Deductible losses for which no deferred tax assets are recognized will expire in the following
years
Unit: RMB
Year 30 Jun. 2015 31 Dec. 2014 Note
2015 15,378,101.19 15,706,529.89
2016 16,885,955.11 16,885,955.11
2017 30,345,268.82 30,345,268.82
2018 75,300,266.59 75,300,266.59
2019 49,621,628.48 49,621,628.48
2020 - -
Total 187,531,220.19 187,859,648.89
19. Other non-current assets
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Shore Line Use Right (Note) - 48,187,500.00
Land Use Right (Note) 108,024,617.48 183,565,126.79
Advances on construction 1,426,433.96 2,914,766.80
Total 109,451,051.44 234,667,393.59
Note: The Company entered into Frame Contract for Cooperation on Usage of Quay and Land
for Berth 2#- 5# at Machong Port in Dongguan and its supplements with Dongguan
Humen Port Administration Commission to purchase a land with an area of 800,000 square
meters and area of water with depth of 700 meters from the front of terminal, together with
the use right of 1,200 meters coast line, for berth 2# to berth 5# in Dongguan Machong
Port at a consideration of RMB260,000,000, respectively in March 2006, October 2006,
November 2007 and September 2014. As the Group has not obtained some of the land use
right certificate, the relevant payments were therefore recognized as other non-current
assets.
- 58 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
20. Details of provision for impairment losses of assets
Unit: RMB
Decrease Foreign
exchange
translation
Item 31 Dec. 2014 Increase Reversals Others differences 30 Jun. 2015
I. Bad debts provision 856,704.86 162,521.49 9,244.06 - - 1,009,982.29
Including: Provision for accounts - - -
361,993.47 114,180.88 476,174.35
receivable
Including: Provision for other receivables 494,711.39 48,340.61 9,244.06 - - 533,807.94
II.Provision for decline in value of - - - -
972,744.93 972,744.93
inventories
III.Provision for impairment losses of - - - -
3,128,300.00 3,128,300.00
available-for-sale financial assets
IV.Provision for impairment losses of - - - - -
-
held-to-maturity investments
V. Provision for impairment losses of - - - - -
-
long-term equity investments
VI. Provision for impairment losses of - - - - -
-
investment properties
VII. Provision for impairment losses of - - - -
60,695,381.41 60,695,381.41
fixed assets
Total 65,653,131.20 162,521.49 9,244.06 - - 65,806,408.63
21. Short-term borrowings
Unit:RMB
Item 30 Jun. 2015 31 Dec. 2014
Credit loans 133,294,087.68 -
22. Accounts payable
(1) Details of accounts payable
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Service 41,897,529.83 44,373,840.63
Material purchase 14,602,938.26 18,596,880.54
Construction 8,345,529.07 8,098,608.44
Rental 14,338,167.35 5,242,675.11
Equipment 714,203.40 1,135,848.41
Total 79,898,367.91 77,447,853.13
(2) Aging of accounts payable
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Aging Amount Proportion (%) Amount Proportion (%)
Within 1 year 70,465,340.25 88.19 68,246,615.24 88.11
More than 1 year but not exceeding 2 years 1,619,068.14 2.03 871,325.76 1.13
More than 2 years but not exceeding 3 years 1,837,638.98 2.30 2,004,445.20 2.59
More than 3 years 5,976,320.54 7.48 6,325,466.93 8.17
Total 79,898,367.91 100.00 77,447,853.13 100.00
- 59 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
22. Accounts payable - continued
(3) Details of significant accounts payable aged more than one year
Unit: RMB
Name of entity 30 Jun. 2015 Aging Reasons for unpayment
Tonggu sea-route Construction Office 2,560,000.00 Over 3 years Remaining construction costs
Shenzhen IB Technologies Development
1,641,000.00 2-3 years Remaining construction costs
CO.,Ltd
Total 4,201,000.00
(4) As at 30 June 2015, no balances in above accounts payable are due to parties having 5% or
above voting rights in the Company except for the amount due to Nanshan Group. Payables to
Nanshan Group or other related parties are specified in (XI) 6.
23. Advances
(1) Details of advances
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Service fee receipt in advance 7,036,209.89 31,818,775.21
(2) Aging of advances
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Aging
Amount Proportion (%) Amount Proportion (%)
Within 1 year 7,036,209.89 100.00 31,818,775.21 100.00
(3) As at 30 June 2015, the Group did not have any advance from shareholders or related parties
having 5% or above voting rights in the Company.
24. Employee benefits payable
(1) Employee benefits payable
Unit:RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
I. Short-term benefits 69,425,249.36 153,841,379.32 166,108,561.99 57,158,066.69
II. Post-employment benefit -
- 15,971,900.30 15,971,900.30 -
defined contribution plans
III. Termination benefits - - - -
Total 69,425,249.36 169,813,279.62 182,080,462.29 57,158,066.69
- 60 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
24. Employee benefits payable - continued
(2) Short-term benefits
Unit:RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
I. Wages and salaries, bonuses, allowances
56,438,493.07 127,442,007.02 140,512,675.43 43,367,824.66
and subsidies
II. Staff welfare - 3,002,700.04 3,002,700.04 -
III. Social insurance charges 535.54 4,316,381.12 4,316,381.12 535.54
Including: Premiums or contributions on
- 3,372,583.74 3,372,583.74 -
medical insurance
Work injury insurance 535.54 377,942.07 377,942.07 535.54
Maternity insurance - 565,855.31 565,855.31 -
IV. Housing funds - 7,263,691.22 7,263,691.22 -
V. Labor union and employee education
12,986,220.75 3,726,325.99 2,915,490.25 13,797,056.49
funds
VI. Others - 8,090,273.93 8,097,623.93 (7,350.00)
Total 69,425,249.36 153,841,379.32 166,108,561.99 57,158,066.69
Note: There are no amounts in arrears under the employee benefits payable.
(3) Defined contribution plans
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
I. Basic pension (Note 1) - 11,277,331.36 11,277,331.36 -
II. Unemployment insurance (Note 1) - 338,221.02 338,221.02 -
III. Supplementary pension (Note 2) - 4,356,347.92 4,356,347.92 -
Total - 15,971,900.30 15,971,900.30 -
Note 1: The Group participates in the social security contributions and the unemployment
insurance plan established by government institutions as required. According to such
plans, the Group contributes 14% ( 13% for staffs without Shenzhen householder
register ) , 2% (0.5% for staffs in Dongguan City) respectively to such plans based on the
employee's basic salary each month.
During the year, the Group shall contribute RMB 11,277,331.36 and RMB 338,221.02
respectively to the social security contributions and the unemployment insurance plan
(2014: RMB 10,181,656.14 and RMB 315,243.24). As at 30 June 2015, the Group have
no outstanding contributions to be paid to the social security contributions and the
unemployment insurance plan.
Note 2: On 3 June 2008, the Group participated in a group defined contribution plan of Nanshan
Group approved by Shenzhen government. The above supplementary pension
contributions were paid into the plan through Nanshan Group.
- 61 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
25. Taxes payable
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
Enterprise income tax 46,001,742.96 18,629,057.42 31,317,003.55 33,313,796.83
Withholding tax (Note) 16,086,356.11 - 14,783,886.87 1,302,469.24
Business tax 491,213.54 2,039,575.42 2,020,122.40 510,666.56
Value-added-tax 2,980,055.19 10,767,128.12 11,301,865.37 2,445,317.94
Others 814,844.06 15,445,377.11 11,722,126.45 4,538,094.72
Total 66,374,211.86 50,814,074.09 75,077,940.66 42,110,345.29
Note: The amount represents the withholding tax provided by the Group at the rate of 5% or 10%
when paying out dividends to foreign shareholders and Chiwan Wharf Holdings (H.K.)
Limited located in Hong Kong.
26. Interest payable
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Interest on debentures 23,094,039.20 33,775,342.43
Interest on short-term borrowings 53,171.56 -
Total 23,147,210.76 33,775,342.43
27. Dividends payable
Unit: RMB
Name of entity 30 Jun. 2015 31 Dec. 2014
Common stock dividends 208,903,448.33 199,830,762.29
Including: Payable to International Enterprise Co., Ltd. - 146,963,530.87
Payable to Hidoney Developments Co., Ltd. - 52,867,231.42
Nanshan Group 67,938,609.71 -
Shenzhen Malai Warehouse Co., Ltd. 52,225,862.29 -
Public A Shares 30,453,278.72 -
Public B Shares 58,285,697.61 -
28. Other payables
(1) Presented other payables by the nature
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Construction and quality margin 45,526,544.76 49,895,534.66
Temporary receipts 10,722,940.05 19,482,137.94
Security expense payable 8,561,163.93 3,951,002.85
Deposits received 4,714,964.61 3,181,017.63
Others 16,386,886.97 9,049,261.33
Total 85,912,500.32 85,558,954.41
- 62 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
28. Other payables - continued
(2) The aging of other payables
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Proportion Proportion
Aging Amount (%) Amount (%)
Within 1 year 54,218,888.53 63.11 77,519,128.97 90.60
More than 1 year but not exceeding 2 years 27,064,187.63 31.50 3,598,190.51 4.21
More than 2 years but not exceeding 3 years 1,585,514.18 1.85 842,222.99 0.98
More than 3 years 3,043,909.98 3.54 3,599,411.94 4.21
Total 85,912,500.32 100.00 85,558,954.41 100.00
(3) Details of significant other payables aged more than one year
Unit: RMB
Name of entity 30 Jun. 2015 Aging Reasons for unpayment
CCCC Third Harbor Engineering Co., Balance payment and quality
20,793,248.22 1-2 years
Ltd. assurance money
(4) As at 30 June 2015, no balances included in above other payables are due to parties having 5%
or above voting rights in the Company except for the amount due to Nanshan Group.. Payables to
related parties are specified in (XI) 6.
29. Current portion of non-current liabilities
(1) Details of current portion of non-current liabilities are as follows:
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Current portion of deferred income 5,011,361.68 (Note) 4,997,419.52
Note: Please refer to (VI) 33.
30、Other current liabilities
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Short-term bonds payable 500,000,000.00 400,000,000.00
Changes of Short-term bonds payable:
Unit: RMB
Bond Amount issued in the Interest accrued at Discount or premium Repayment in the
Name of bond Par value Date of issue period Amount of issue 31 Dec. 2014 current period par during the year amortization current year 30 Jun. 2015
14 Chiwan port CP001 400,000,000.00 26/06/2014 365days 400,000,000.00 400,000,000.00 - 9,698,630.12 - 400,000,000.00 -
15 Chiwan port CP001 300,000,000.00 10/04/2015 366days 300,000,000.00 - 300,000,000.00 3,172,950.82 - - 300,000,000.00
15 Chiwan port
200,000,000.00 16/06/2015 90days 200,000,000.00 - 200,000,000.00 282,732.24 - - 200,000,000.00
SCP001
Total 900,000,000.00 400,000,000.00 500,000,000.00 13,154,313.18 - 400,000,000.00 500,000,000.00
- 63 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
30、Other current liabilities - continued
Note: According to Notice of Registration Acceptance (Zhong Shi Xie Zhu [2013] No. CP171)
issued by China's Interbank Market Dealers Association received by the Company on May
7th, 2013, Market Dealers Association agrees with the Company's RMB 1.6 billion yuan of
short-term financing registration and the valid period of registration limit is two years from
the acceptance of Notice of Registration Acceptance. On April 10th 2015, the Company
issued the third short-term financing bill with an amount of RMB 300 million at the interest
rate of 4.90%. The principle should be repaid with interest when the bill is due within one
year.
Pursuant to the notification letter of registration accepted (ZSXZ [2015] Document No.
SCP121) from the National Association of Financial Market Institutional Investors received
by the Company on 14 May 2015, the Company has been approved to register super-short-
term financing bonds under the line of RMB 1.6 billion, with the registered line effective
within two years of the receipt of the said notification letter. On 16 June 2015, the Company
issued the first phase of the super-short-term financing bonds of RMB 200 million at an
interest rate of 3.98% and for a term of 90 days. The principals and the interest shall be
repaid in a lump sum upon maturity.
31. Bonds payable
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Corporate bonds 497,361,095.91 995,110,137.02
Changes of bonds payable:
Unit: RMB
Amount
issued in the Interest accrued Discount or
Term of the current at par during the premium Repayment in
Name of bonds Par value Issue date bond Issue amount 31 Dec. 2014 period year amortization the current year 30 Jun. 2015
11 ChiWan 01 500,000,000.00 26/04/2012 Five years 500,000,000.00 498,145,753.44 - 8,679,452.09 - 500,000,000.00 -
13 ChiWan 01 500,000,000.00 18/10/2013 Five years 500,000,000.00 496,964,383.58 - 13,884,931.50 - - 497,361,095.91
Total 1,000,000,000.00 1,000,000,000.00 995,110,137.02 - 22,564,383.59 - 500,000,000.00 497,361,095.91
Note: On 25 November 2011, the Company received the Approval from CSRC (filed as Zhen Jian
Xu Ke [2011] No.1889) and hence issued corporate bonds with no more than 100 million in
par value. On 26 April 2012, the Company's actual issue amounted to RMB500,000,000
with the term of five years. The bond interests should be calculated on simple interest basis
at a nominal fixed interest rate of 5.28% on a yearly basis.
On 18 October 2013, the Company's actual issue amounted to RMB500,000,000 with the
term of five years. The bond interests should be calculated on simple interest basis at a
nominal fixed interest rate of 5.60% on a yearly basis.
According to the bond prospectus, the Company should make an announcement on whether
to exercise the redemption option on the information disclosure media designated by CSRC
at the 30th trading date before the interest payment date in the third interest-bearing year. If
the decision of exercising the redemption option is made, the bond would be regarded as to
be matured in the third year and the payment mode of redemption would be the same as that
of principal and interests of bonds due in the period. If the decision of not exercising the
- 64 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
redemption of option is made, the Company should make an announcement on whether to
raise the interest rate and the extent of variation, which ranges from zero to 100 base points.
If the company chooses to exercise the option of raising the stated interest rate, the stated
interest rate of the portion of non-put-back bond due in two years after the remaining period
equals to the stated interest rate due in three years prior to the remaining period plus the
increased base point. And the stated interest rate of the bond due in two years after the
remaining period would be fixed. If the company chooses not to exercise the option of
raising the stated interest rate, the original stated interest rate remains the same for the
portion of non-put-back bond due in two years after the remaining period.
Investors have the option to sell bonds back to the Company at the interest payment date in
the third interest-bearing year at the par value wholly or in partially, after the Company
makes the announcement on whether to raise the stated interest rate and the extent of
variation.
If the Company abandons the redemption option and the bondholder s abandon the put back
option wholly or partially, the rest of the principal would be paid back in advance. Namely,
30% proportion of the principal should be paid back at the end of the fourth year since the
bond issued and the rest should be paid back at the end of the fifth year.
The Proposal for Redemption of 2011 Corporate Bonds (Phase I) was reviewed and
approved at the Second Special Meeting of the Eighth Board of Directors on 12 March 2015,
deciding to exercise the issuer redemption option on the 2011 Corporate Bonds (Phase I)
and redeem all the corporate bonds of “11 Chiwan 01” at the book closure date.
As per the Prospectus, the Company redeemed all the corporate bonds of “11 Chiwan 01”
on the mature date of 27 April 2015, paying a lump sum of par value and interest of RMB
526,400,000.00. As such, the corporate bonds of “11 Chiwan 01” (112082) have been
delisted from the Shenzhen Stock Exchange since 27 April 2015.
32. Special payables
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015 Note
Refunds of Harbor Construction Fee 47,002,997.66 - 1,875,328.16 45,127,669.50 Note
Note: The item is refunds of harbor construction fee to the Company and its subsidiary Chiwan
Container Terminal Company Limited from Shenzhen Traffic Bureau. According to
Measures of Harbor Construction Fee Management released by Ministry of Finance, the
funds should be managed in separate account and can be only used on fundamental
facilities' construction of marine transportation.
- 65 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
33. Deferred income
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015 Notes
Deferred income 52,335,315.88 648,576.65 2,738,330.76 50,245,561.77
Including: Berth priority right 40,308,244.84 148576.65 2,400,318.02 38,056,503.47 Note 1
Government grant related 12,027,071.04 500,000.00 338,012.74 12,189,058.30 Note 2
to asset
Total 52,335,315.88 648,576.65 2,738,330.76 50,245,561.77
Less: Non-current liabilities due
4,997,419.52 5,011,361.68
within one year
Including: Berth priority right 4,436,275.00 4,432,360.00
Government grant related
to asset 561,144.52 579,001.68
Deferred income 47,337,896.36 45,234,200.09
Note 1: Berth priority right represents that agreed in the contract signed in 2003, which amounts
to USD14,000,000. The Group should satisfy the berthing requirement of contracted
customers in priority during the contract period. According to the contract, the berth
priority right should be amortized over twenty years on the straight-line basis.
Note 2: The item is government grants received which is based on the Announcement Released by
National Development and Reform Commission about 2010 Investment Plans within
Budget of Grains and Modern Logistics Program (NDRC[2010] No.1263) and the
Announcement Released by Guangdong Provincial Department of Finance about 2012
Provincial Special Funds to Guide the Development of Modern Service Project
(Guangdong Production Letter [2012] No. 621) and Transportation of energy saving
special funds Interim Measures (Finance Building [2011] No. 374) and Nanshan District,
Shenzhen, energy saving projects funded sub contract and the Administrative Measures of
Dongguan Municipality Regarding Mating Subsidies for Projects with Special Funds for
National and Provincial Industry Development (DFB [2013]No. 162),and it shall be
amortized on the straight-line basis over the useful life of the related asset.
Programs related with government grants:
Unit: RMB
The amount
included in Related to
New subsidy of operating income assets/Related to
Liability Program 31 Dec. 2014 the year of the year Other changes 30 Jun. 2015 income
Modern logistics project special
7,526,956.96 - 83,478.24 - 7,443,478.72 Related to assets
funds
Special funds for the development
960,114.08 - 17,094.00 - 943,020.08 Related to assets
of modern service guide
Special funds for energy-saving
and emission reduction of 3,540,000.00 - 230,000.00 - 3,310,000.00 Related to assets
transportation
2014 mating subsidies for the
special funds to promote national
- 500,000.00 7,440.50 - 492,559.50 Related to assets
and provincial commerce
circulation
Total 12,027,071.04 500,000.00 338,012.74 - 12,189,058.30
- 66 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Share capital
Unit: RMB
Changes for the period
New issue of Capitalisation of
Item 31 Dec. 2014 share Bonus issue surplus reserve Others Subtotal 30 Jun. 2015
2015:
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned legal person
- - - - - - -
shares
3. Other domestic shares 367,401.00 - - - - - 367,401.00
4. Other foreign shares - - - - - - -
Total restricted tradable shares 367,401.00 - - - - - 367,401.00
II. Tradable shares - - - - - -
1. Ordinary shares denominated
464,867,324.00 - - - - - 464,867,324.00
in RMB
2. Foreign capital shares listed
179,529,005.00 - - - - - 179,529,005.00
domestically
3. Foreign capital shares listed
- - - - - - -
overseas
4. Others - - - - - - -
Total tradable shares 644,396,329.00 - - - - - 644,396,329.00
III. Total shares 644,763,730.00 - - - - - 644,763,730.00
Changes for the period
New issue of Capitalisation of
Item 31 Dec. 2013 share Bonus issue surplus reserve Others Subtotal 31 Dec. 2014
2014:
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned legal person
- - - - - - -
shares
3. Other domestic shares 387,509.00 - - - (20,108.00) (20,108.00) 367,401.00
4. Other foreign shares - - - - - - -
Total restricted tradable shares 387,509.00 - - - (20,108.00) (20,108.00) 367,401.00
II. Tradable shares
1. Ordinary shares denominated
464,867,324.00 - - - - - 464,867,324.00
in RMB
2. Foreign capital shares listed
179,508,897.00 - - - 20,108.00 20,108.00 179,529,005.00
domestically
3. Foreign capital shares listed
- - - - - - -
overseas
4. Others - - - - - - -
Total tradable shares 644,376,221.00 - - - 20,108.00 20,108.00 644,396,329.00
III. Total shares 644,763,730.00 - - - - - 644,763,730.00
- 67 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Capital reserve
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
2015:
Capital premium 163,560,083.00 - - 163,560,083.00
Including: Capital contributed by investors 163,560,083.00 - - 163,560,083.00
Conversion option of convertible corporate bonds is
- - - -
exercised
Debt converted into capital - - - -
Differences arising from business combination involving
- - - -
enterprises under common control
Equity acquisition from minority shareholders of
- - - -
subsidiaries
Capital reserve converted into capital - - - -
Other capital reserve (861,527.35) - - (861,527.35)
Including: Equity component split from convertible corporate bonds - - - -
Fair value of equity-settled share-based equity instrument - - - -
Surplus of compensation granted by government for
- - - -
relocation in the public interests
Transfer from capital reserve under the previous
(2,781,133.00) - - (2,781,133.00)
accounting system
Others 1,919,605.65 - - 1,919,605.65
Total 162,698,555.65 - - 162,698,555.65
Item 31 Dec. 2013 Increase Decrease 31 Dec. 2014
2014:
Capital premium 163,560,083.00 - - 163,560,083.00
Including: Capital contributed by investors 163,560,083.00 - - 163,560,083.00
Conversion option of convertible corporate bonds is
- - - -
exercised
Debt converted into capital - - - -
Differences arising from business combination involving
- - - -
enterprises under common control
Equity acquisition from minority shareholders of
- - - -
subsidiaries
Capital reserve converted into capital - - - -
Other capital reserve (861,527.35) - - (861,527.35)
Including: Equity component split from convertible corporate bonds - - - -
Fair value of equity-settled share-based equity instrument - - - -
Surplus of compensation granted by government for
- - - -
relocation in the public interests
Transfer from capital reserve under the previous
(2,781,133.00) - - (2,781,133.00)
accounting system
Others 1,919,605.65 - - 1,919,605.65
Total 162,698,555.65 - - 162,698,555.65
- 68 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS – continued
36. Other comprehensive income
Unit: RMB
Amount incurred in current year
Less: Amount
included in other
comprehensive
income in the
Amount before prior periods that Amount Amount
income tax is transferred to attributable to attributable to
incurred in current profit or loss for Less: shareholders of the minority
Item Opening balance year the period income tax parent holders Closing balance
2015
I. Other comprehensive income that will
not be reclassified subsequently to profit - - - - - - -
or loss
Including: Change as a result of
remeasurement of the net defined - - - - - - -
benefit plan liability or asset
Share of other comprehensive income of
the investee under the equity method
- - - - - - -
that will not be reclassified to profit or
loss
II. Other comprehensive income that
will be reclassified subsequently to (8,977,146.43) 2,380,000.00 - 595,000.00 1,785,000.00 - (7,192,146.43)
profit or loss
Including: Share of other
comprehensive income of the investee
100,000.00 - - - - - 100,000.00
under the equity method that will be
reclassified to profit or loss
Gains or losses on changes in fair value
4,635,000.00 2,380,000.00 595,000.00 1,785,000.00 - 6,420,000.00
of available-for-sale financial assets
Gains or losses on reclassification of
held-to-maturity investments to - - - - - - -
available-for-sale financial assets
Effective portion of gains or losses on
- - - - - - -
cash flow hedges
Translation differences of financial
statements denominated in foreign (13,712,146.43) - - - - - (13,712,146.43)
currencies
Total (8,977,146.43) 2,380,000.00 - 595,000.00 1,785,000.00 - (7,192,146.43)
2014
I. Other comprehensive income that will
not be reclassified subsequently to profit - - - - - - -
or loss
Including: Change as a result of
remeasurement of the net defined - - - - - - -
benefit plan liability or asset
Share of other comprehensive income of
the investee under the equity method
- - - - - - -
that will not be reclassified to profit or
loss
II. Other comprehensive income that
will be reclassified subsequently to (10,267,569.50) 1,720,423.07 - 430,000.00 1,290,423.07 - (8,977,146.43)
profit or loss
Including: Share of other
comprehensive income of the investee
100,000.00 - - - - - 100,000.00
under the equity method that will be
reclassified to profit or loss
Gains or losses on changes in fair value
3,345,000.00 1,720,000.00 - 430,000.00 1,290,000.00 - 4,635,000.00
of available-for-sale financial assets
Gains or losses on reclassification of
held-to-maturity investments to - - - - - - -
available-for-sale financial assets
Effective portion of gains or losses on
- - - - - - -
cash flow hedges
Translation differences of financial
statements denominated in foreign (13,712,569.50) 423.07 - - 423.07 - (13,712,146.43)
currencies
Total (10,267,569.50) 1,720,423.07 - 430,000.00 1,290,423.07 - (8,977,146.43)
37. Special reserve
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
2015:
Production safety fee 2,219,777.52 7,623,302.62 6,353,097.27 3,489,982.87
31 Dec. 2013 Increase Decrease 31 Dec. 2014
2014:
Production safety fee 2,194,178.40 15,335,522.96 15,309,923.84 2,219,777.52
- 69 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Surplus reserve
Unit: RMB
Item 31 Dec. 2014 Increase Decrease 30 Jun. 2015
2015:
Statutory surplus reserve 520,074,434.56 - - 520,074,434.56
31 Dec. 2013 Increase Decrease 31 Dec. 2014
2014:
Statutory surplus reserve 483,685,708.52 36,388,726.04 - 520,074,434.56
Note: In accordance with the Company Law and the Company's Articles of Association, the
Company should appropriate 10% of net profit for the year to the statutory surplus reserve,
and the Company can cease appropriation when the statutory surplus reserve accumulated
to more than 50% of the paid in capital. The statutory surplus reserve can be used to make
up for the loss or increase the paid in capital after approval.
39. Unappropriated profit
Unit: RMB
Proportion of
appropriation or
Item Amount allocation
2015:
Before adjustment: Unappropriated profit at the end of prior year 2,794,519,480.29
Adjustment: Total unappropriated profit at the beginning of year -
After adjustment: Unappropriated profit at the beginning of year 2,794,519,480.29
Add: Net profit attributable to shareholders of the parent company
241,977,372.34
for the period
Less: Appropriation to statutory surplus reserve -
Appropriation to discretionary surplus reserve -
Appropriation to general risk reserve -
Ordinary shares' dividends payable 208,903,448.52 Note 1
Ordinary shares' dividends converted into share capital -
Unappropriated profit at the end of the period 2,827,593,404.11
2014:
Before adjustment: Unappropriated profit at the end of prior year 2,664,771,789.70
Adjustment: Total unappropriated profit at the beginning of year -
After adjustment: Unappropriated profit at the beginning of year 2,664,771,789.70
Add: Net profit attributable to shareholders of the parent company
for the period 417,594,271.33
Less: Appropriation to statutory surplus reserve 36,388,726.04
Appropriation to discretionary surplus reserve -
Appropriation to general risk reserve -
Ordinary shares' dividends payable 251,457,854.70
Ordinary shares' dividends converted into share capital -
Unappropriated profit at the end of the period 2,794,519,480.29
Note 1: Cash dividends approved by shareholders' meeting during the year
Pursuant to the board resolution on 29 May 2015, on the basis of 644,763,730 issued
shares for the year ended 31 December 2014, dividends of RMB3.24 for every 10 shares
were distributed to all the shareholders, which amounted to RMB208,903,448.52.
- 70 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
Note 2: Appropriation to surplus reserve that has been made by subsidiaries
As at 30 June 2015, the balance of the Group's unappropriated profit included
appropriation to surplus reserve that has been made by subsidiaries amounting to
RMB547,756,504.18 (31 December 2014: RMB547,756,504.18).
40. Operating income and operating costs
Unit: RMB
Jan.-Jun. 2015 Jan.-Jun. 2014
Item Income Cost Income Cost
Principal operating 861,386,432.47 461,451,632.41 850,479,957.68 460,676,083.26
Other operating 19,401,576.31 1,975,879.18 25,501,283.91 1,990,039.88
Total 880,788,008.78 463,427,511.59 875,981,241.59 462,666,123.14
41. Business taxes and surcharges
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Business tax 2,039,575.42 2,284,910.67
Urban maintenance and construction tax 835,195.38 752,008.61
Education surcharges 643,055.12 568,777.54
Others 399,670.96 190,201.29
Total 3,917,496.88 3,795,898.11
42. General and administrative expenses
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Employee benefits 60,392,774.99 52,197,018.44
Taxes 3,578,849.23 3,013,179.76
Depreciation expenses 1,499,541.41 3,087,842.28
Amortization of intangible assets 472,849.08 1,386,848.53
Others 18,257,857.21 18,180,790.18
Total 84,201,871.92 77,865,679.19
- 71 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
43. Financial expenses
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Interest expense 36,000,388.69 45,153,008.94
Less: Capitalized interest expenses 112,363.36 8,392,657.02
Less: Interest income 3,075,844.58 5,861,902.78
Exchange differences (2,121,677.17) 3,575,938.85
Less: Capitalized exchange differences - -
Others 3,480,296.71 2,721,374.95
Total 34,170,800.29 37,195,762.94
44. Impairment losses of assets
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
I. Bad debt losses 153,277.43 754,295.12
II. Write-down of inventories - (2,126.21)
III. Impairment on available-for-sale financial assets - -
IV. Impairment on held-to-maturity investments - -
V. Impairment on long-term equity investments - -
VI. Impairment on investment properties - -
VII. Impairment on fixed assets - -
VIII. Impairment on construction materials - -
IX. Impairment on construction in progress - -
X. Impairment on bearer biological assets - -
XI. Impairment on oil and gas assets - -
XII. Impairment on intangible assets - -
XIII. Impairment on goodwill - -
XIV. Others - -
Total 153,277.43 752,168.91
45. Investment income
(1) Details of investment income
Unit: RMB
Jan.-Jun. 2015 Jan.-Jun. 2014
Long-term equity investments income under equity method 48,454,997.32 42,846,690.90
Investment income on available-for-sale financial assets 380,000.00 380,000.00
Others - 1,202,054.79
Total 48,834,997.32 44,428,745.69
(2) Long-term equity investments income under equity method
Unit: RMB
Reasons for increases or
decreases in the current
Investee Jan.-Jun. 2015 Jan.-Jun. 2014 compared to the prior period
MPIL 17,488,986.85 22,087,996.12 Net profit of investee fluctuates.
China Overseas Harbor Affairs (Laizhou) Co.,Ltd 23,873,557.00 18,909,226.32 Net profit of investee fluctuates.
CMBL 3,864,439.94 2,251,833.48 Net profit of investee fluctuates.
China Merchants Holdings (international ) Information
440,040.00 (1,669,712.31) Net profit of investee fluctuates.
Technology Co.,Ltd
China Development Finance Co., Ltd 2,787,973.53 1,267,347.29 Net profit of investee fluctuates.
Total 48,454,997.32 42,846,690.90
- 72 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
46. Non-operating income
(1) Non-operating income
Unit: RMB
Amount recognized
as non-recurring
gain and loss in the
Item Jan.-Jun. 2015 Jan.-Jun. 2014 current period
Total gains on disposal of non-current assets 166,790.00 - 166,790.00
Including: Gains on disposal of fixed assets 166,790.00 - 166,790.00
Government grants 338,012.74 4,290,189.30 338,012.74
Insurance compensation income - - -
Income derived from settlement of the payables
- - -
that cannot be paid
Others 507,828.03 315,708.22 507,828.03
Total 1,012,630.77 4,605,897.52 1,012,630.77
(2) Details of government grants
Unit: RMB
Related to
assets/Related to
Item Jan.-Jun. 2015 Jan.-Jun. 2014 income
Financial support funds of business tax converted to
- 589,616.66 Related to income
VAT
Reward for energy saving - - Related to income
Modern logistics project special funds 83,478.24 83,478.64 Related to assets
Special funds for the development of modern service
17,094.00 17,094.00 Related to assets
guide
Special funds for energy-saving and emission reduction
230,000.00 3,600,000.00 Related to assets
of transportation
2014 mating subsidies for the special funds to promote
7,440.50 - Related to assets
national and provincial commerce circulation
Total 338,012.74 4,290,189.30
47. Non-operating expenses
Unit: RMB
Amount recognized as
non-recurring gain and
loss in the current
Item Jan.-Jun. 2015 Jan.-Jun. 2014 period
Total losses on disposal of non-current assets 54,508.30 74,463.56 54,508.30
Including: Losses on disposal of fixed assets 54,508.30 74,463.56 54,508.30
Donations contributed 10,000.00 13,000.00 10,000.00
Amercement outlay 19,000.00 6,302.57 19,000.00
Others 12,076.40 0.52 12,076.40
Total 95,584.70 93,766.65 95,584.70
- 73 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Income tax expenses
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Current tax expense 18,629,057.42 44,672,049.81
Deferred income tax 15,829,473.74 8,568,277.19
Total 34,458,531.16 53,240,327.00
Reconciliation of income tax expenses to the accounting profit is as follows:
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Accounting profit 344,669,094.06 342,646,485.86
Income tax expenses calculated at 25% (the prior year: 25 %) 86,167,273.52 85,661,621.47
Effect of expenses that are not deductible for tax purposes 1,180,562.47 1,464,117.43
Effect of tax-free income (12,208,749.33) (10,806,672.73)
Effect of unrecognized deductible losses and deductible temporary
11,244,968.18 9,052,259.72
differences for tax purposes
Effect of different tax rates of subsidiaries operating in other jurisdictions (46,005.42) (11,120.79)
Effect of tax preference policy (51,551,089.56) (32,119,878.10)
Withholding tax (Note) - -
Effect of previous unrecognized deductible temporary differences of
(328,428.70) -
deferred income tax
Income tax expense 34,458,531.16 53,240,327.00
Note: Withholding income tax was accrued at the rate of 5% or 10% for dividend payable to
Chiwan Wharf Holdings (H.K.) Limited for the year ended 31 December 2013, declared by
those Group's PRC subsidiaries of which Chiwan Wharf Holdings (H.K.) Limited is a
shareholder.
49. Other comprehensive income
Please refer to Note (VI) 36.
50. Borrowing cost
Unit: RMB
Jan.-Jun. 2015 Jan.-Jun. 2014
Amount of Amount of
borrowing costs borrowing costs
capitalised during Capitalisation capitalised during Capitalisation
Name of Project the year rate the year rate
Construction in progress 112,363.36 5.35% 8,392,657.02 5.96%
Sub-total of borrowing costs
112,363.36 8,392,657.02
capitalised during the year
Borrowing costs recognised in profit
35,888,025.33 36,760,351.92
or loss during the year
Total of borrowing costs during the
36,000,388.69 45,153,008.94
year
- 74 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
51. Notes to items in the cash flow statement
(1) Other cash receipts relating to operating activities
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Interest income 3,202,124.92 6,614,240.27
Refunds of Harbor Construction Fee received 10,733.06 534,310.99
Government grants 500,000.00 4,189,617.06
Receipt of advance for desilting of Tonggu sea-route 9,908,911.11 -
Others 2,424,815.84 3,873,117.75
Total 16,046,584.93 15,211,286.07
(2) Other cash payments relating to operating activities
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Office expenses & utilities 2,576,154.17 2,913,245.64
Port expenses 2,867,426.20 2,615,958.33
Entertainment 1,697,115.27 2,006,290.96
Car expenses 979,883.44 2,073,744.86
Asset insurance 1,045,455.63 860,976.14
Consulting & auditing 910,186.68 1,598,050.91
Travel & accommodation 721,228.46 912,859.50
Advertisements & exhibition - 222,831.33
Others 6,885,660.92 24,787,852.37
Total 17,683,110.77 37,991,810.04
(3) Other cash payments relating to financing activities
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Debt issue costs 128,296.31 201,424.00
Total 128,296.31 201,424.00
- 75 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
52. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary Jan.-Jun. 2015 Jan.-Jun. 2014
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 310,210,562.90 289,406,158.86
Add: Provision for impairment losses of assets 153,277.43 752,168.91
Depreciation of fixed assets 100,491,851.39 93,731,499.37
Depreciation and amortization of investment property 590,075.99 607,891.20
Amortization of intangible assets 19,613,811.22 21,836,668.85
Amortization of long-term prepaid expenses 1,377,499.91 1,434,809.29
Losses on disposal of fixed assets , intangible assets and other
54,508.30 74,463.56
long-term assets
Financial expenses 36,017,307.05 36,760,351.92
Gains arising from investments (48,834,997.32) (44,428,745.69)
Decrease(Increase) in deferred tax assets 15,829,473.74 8,568,277.19
Decrease in inventories (268,441.11) (611,854.99)
Decrease(Increase) in operating receivables (10,684,097.89) (80,832,478.39)
Increase(Decrease) in operating payables (59,028,316.90) (44,666,000.33)
Net cash flows from operating activities 365,522,514.71 282,633,209.75
2. Significant investing and financing activities that do not involve cash
receipts and payments:
Conversion of debt into capital - -
Convertible bonds due within one year - -
Fixed assets acquired under finance leases - -
3. Net changes in cash and cash equivalents:
Closing balance of cash 308,172,676.22 782,831,116.07
Less: Opening balance of cash 468,635,486.47 715,539,516.48
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase(Decrease) in cash and cash equivalents (160,462,810.25) 67,291,599.59
(2) Composition of cash and cash equivalents
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
I. Cash 308,172,676.22 468,635,486.47
Including: Cash on hand 11,721.42 11,192.14
Bank deposits 308,074,530.44 466,187,949.61
Other monetary funds 86,424.36 2,436,344.72
II. Cash equivalents - -
III. Closing balance of cash and cash equivalents 308,172,676.22 468,635,486.47
53. Asset with ownership or right restricted
The Group has no assets with ownership or right restricted.
- 76 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
54. Foreign currency monetary items
Unit: RMB
Closing balance of Exchange
Item original currency rate Closing amount in RMB
Currency Funds 105,102,984.57
Including: HKD 122,220,244.06 0.7886 96,382,884.47
USD 1,426,344.56 6.1136 8,720,100.10
Interest Receivable 56,147.20
Including: HKD 71,198.58 0.7886 56,147.20
Accounts Receivable 12,830,651.06
Including: HKD 7,962,371.99 0.7886 6,279,126.55
USD 1,071,631.20 6.1136 6,551,524.51
Other Receivables 10,959,963.91
Including: HKD 6,119,059.64 0.7886 4,825,490.43
USD 1,003,414.27 6.1136 6,134,473.48
Short-term borrowings 133,294,087.68
Including: HKD 169,026,233.43 0.7886 133,294,087.68
Accounts Payable 2,030,059.41
Including: HKD 2,574,257.43 0.7886 2,030,059.41
Other Payable 31,691,303.66
Including: HKD 6,740,756.56 0.7886 5,315,760.62
USD 4,314,240.88 6.1136 26,375,543.04
Interest payable 53,171.56
Including: HKD 67,425.26 0.7886 53,171.56
(VII) CHANGES IN THE CONSOLIDATION SCOPE
1. Cancellation of subsidiary
Pursuant to Chapter 213 of the Companies Act (2004) of the British Virgin Islands, BVI Financial
Services Commission announced on 5 June 2015 that Grossalan Investments Limited, a subsidiary
of the Group, has been dismissed since 30 April 2014. As such, it has been excluded from the
consolidated financial statements of the Group since 1 January 2015.
- 77 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VIII) INTERESTS IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group
Unit: RMB
Registered Balance of other items Proportion of ownership Interest (%)
Capital(in ten Actual capital substantively constituting Proportion of
Principal place of Place of Nature of thousand Yuan unless contribution at the net investments in the Direct ownership Indirect ownership voting power Consolidated or
Full name of the subsidiary business incorporation business otherwise stated) end of the period subsidiary interest interest (%) not Approach of acquiring
Shenzhen Chiwan International Freight Logistics support Established through
Shenzhen, PRC Shenzhen, PRC 550.00 5,500,000.00 - 100.00 - 100.00 Y
Agency Company Limited services investment
Shenzhen Chiwan Trains-Grains Logistics support Established through
Shenzhen, PRC Shenzhen, PRC 4,500.00 45,000,000.00 - 100.00 - 100.00 Y
Terminal Company Limited services investment
Hong Kong SAR, Established through
Chiwan Wharf Holdings (H.K.) Limited Hong Kong Investment HKD 1,000,000.00 1,070,000.00 11,004,285.00 100.00 - 100.00 Y
PRC investment
Dongguan Chiwan Wharf Company Logistics support Established through
Dongguan, PRC Dongguan, PRC 45,000.00 382,500,000.00 - 85.00 - 85.00 Y
Limited services investment
Dongguan Chiwan Terminal Company Logistics support Established through
Dongguan, PRC Dongguan, PRC 40,000.00 400,000,000.00 - 100.00 - 100.00 Y
Limited services investment
Hong Kong SAR, Hong Kong SAR, Established through
Hinwin Development Company Limited Investment HKD 10,000.00 6,278,500.00 94,014,181.00 100.00 - 100.00 Y
PRC PRC investment
Combination involving
Shenzhen Chiwan Harbor Container Co., Logistics support
Shenzhen, PRC Shenzhen, PRC 28,820.00 250,920,000.00 - 100.00 - 100.00 Y enterprises under
Ltd services
common control
Combination involving
Shenzhen Chiwan Transportation Co., Logistics support
Shenzhen, PRC Shenzhen, PRC 1,500.00 7,000,000.00 - 100.00 - 100.00 Y enterprises under
Ltd services
common control
Combination involving
Logistics support
Chiwan Container Terminal Co., Ltd Shenzhen, PRC Shenzhen, PRC USD 95,300,000.00 485,990,004.00 - 55.00 - 55.00 Y enterprises under
services
common control
Combination involving
Shenzhen Chiwan Shipping Service for
Shenzhen, PRC Shenzhen, PRC 2,400.00 24,000,000.00 - 100.00 - 100.00 Y enterprises under
Transportation Co., Ltd. supporting logistics
common control
Combination involving
Hong Kong SAR, Hong Kong SAR, Service for
Chiwan Shipping (Hong Kong) Ltd. HKD 800,000.00 856,000.00 - 100.00 - 100.00 Y enterprises under
PRC PRC supporting logistics
common control
- 78 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VIII) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(2) Material non-wholly-owned subsidiaries
Unit: RMB
Proportion of Profit or loss Payments for
ownership interest attributable to dividends to Closing balance of
held by the minority minority ownership interest
minority shareholders at the shareholders in the of minority
Name of the subsidiary shareholders end of the period current period shareholders
2015
Dongguan Chiwan Wharf
15% 5,550,583.64 - 101,631,569.71
Company Limited
Chiwan Container
45% 61,996,448.34 199,874,053.12 726,216,231.11
Terminal Co., Ltd
Total 67,547,031.98 199,874,053.12 827,847,800.82
2014
Dongguan Chiwan Wharf
15% 16,575,261.72 - 96,080,986.07
Company Limited
Chiwan Container
45% 95,620,966.89 - 664,219,782.77
Terminal Co., Ltd
Total 112,196,228.61 - 760,300,768.84
- 79 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VIII) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries- continued
(3) Significant financial information of material non-wholly-owned subsidiaries
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Name of the subsidiary Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total liabilities
Dongguan Chiwan Wharf Company Limited 46,671,009.88 945,976,738.47 992,647,748.35 320,680,118.45 8,660,056.22 329,340,174.67 37,943,459.17 962,412,902.08 1,000,356,361.25 365,766,466.31 8,285,926.12 374,052,392.43
Chiwan Container Terminal Co., Ltd 215,695,997.47 1,717,646,688.07 1,933,342,685.54 238,826,929.89 80,701,813.37 319,528,743.26 279,041,182.69 1,780,636,820.51 2,059,678,003.20 498,579,073.59 85,054,967.90 583,634,041.49
Unit: RMB
Jan.-Jun. 2015 Jan.-Jun. 2014
Cash Flows from operating Cash Flows from Operating
Name of the subsidiary Operating income Net profit Total comprehensive income activities Operating income Net profit Total comprehensive income Activities
Dongguan Chiwan Wharf Company Limited 139,526,952.33 36,768,241.63 36,768,241.63 29,889,975.87 169,746,878.36 60,286,671.00 60,286,671.00 86,430,850.63
Chiwan Container Terminal Co., Ltd 373,974,452.10 139,373,231.82 139,373,231.82 179,623,649.87 367,234,854.43 100,054,576.66 100,054,576.66 105,692,295.15
(4) No entities are added to the scope of consolidation in the current period.
- 80 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VIII) EQUITY IN OTHER ENTITIES- continued
2. Interests in joint ventures and associates
(1) Material joint ventures or associates
Unit: RMB
Proportion of ownership Proportion of voting power in the Accounting method
Principal interests held by the Group (%) investee held by the Group (%) of investments in
place of Place of Nature of joint ventures and
Investee business incorporation business 30 Jun. 2015 31 Dec. 2014 30 Jun. 2015 31 Dec. 2014 associates
China Overseas Harbor Affairs Warehousing
Laizhou Laizhou 40.00 40.00 40.00 40.00 Equity method
(Laizhou) Co., Ltd and logistics
MPIL Shenzhen British Virgin Islands Investments 50.00 50.00 50.00 50.00 Equity method
(2) Financial information of material joint venture
Unit: RMB
China Overseas Harbor Affairs (Laizhou) Co., Ltd
30 Jun. 2015/ 31 Dec. 2014/
Jan.-Jun. 2015 Jan.-Jun. 2014
Current assets 389,291,992.26 375,987,736.38
Including: cash and cash equivalent 275,331,311.14 293,859,343.15
Non-current assets 1,746,122,595.97 1,760,795,958.65
Total assets 2,135,414,588.23 2,136,783,695.03
Current liabilities 250,101,139.11 54,944,241.94
Non-current liabilities - 179,732,000.00
Total liabilities 250,101,139.11 234,676,241.94
Minority interests (1,439,557.18) 1,244,496.84
Total shareholders' equity attributable to equity holders of the
1,886,753,006.30 1,900,862,956.25
parent
Net assets calculated based on the proportion of ownership
754,701,202.52 760,345,182.50
interest
Adjustments
- Goodwill - -
- Unrealized Profits Resulting from Intragroup Transactions - -
- Others - 1,268,139.54
Carrying amounts of equity investments in Joint Venture 754,701,202.52 761,613,322.04
Operating income 158,924,417.57 145,188,671.76
Financial expenses (1,553,240.62) (9,316,667.18)
Tax expenses 14,430,488.27 6,598,391.48
Net profit 59,691,034.49 46,860,030.68
Other comprehensive income - -
Total comprehensive income 59,691,034.49 46,860,030.68
Dividends received from joint ventures in the current year 30,785,676.52 15,606,241.62
- 81 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(VIII) EQUITY IN OTHER ENTITIES- continued
2. Interests in joint ventures and associates - continued
(3) Financial information of material associates
Unit: RMB
MPIL
30 Jun. 2015/ 31 Dec. 2014/
Jan.-Jun. 2015 Jan.-Jun. 2014
Current assets 242,559,214.91 307,430,988.64
Including: cash and cash equivalent 61,484,255.00 32,538,087.04
Non-current assets 1,403,110,963.95 1,452,397,920.94
Total assets 1,645,670,178.85 1,759,828,909.58
Current liabilities 227,829,591.69 401,036,031.53
Non-current liabilities 260,919,314.61 259,378,043.73
Total liabilities 488,748,906.30 660,414,075.26
Minority interests 465,221,411.68 441,372,770.60
Total shareholders' equity attributable to equity holders of
691,699,861.39 658,042,063.71
the parent
Net assets calculated based on the proportion of
345,849,930.70 329,021,031.85
ownership interest
Adjustments
- Goodwill - -
- Unrealized Profits Resulting from Intragroup
- -
Transactions
- Others (28,572,181.33) (29,232,269.33)
Carrying amounts of equity investments in Joint Venture 317,277,749.37 299,788,762.52
Operating income 240,694,935.93 264,505,726.76
Financial expenses 5,827,239.30 12,673,886.15
Tax expenses 10,534,440.73 12,291,848.83
Net profit 57,150,453.65 70,430,608.67
Other comprehensive income - -
Total comprehensive income 57,150,453.65 70,430,608.67
Dividends received from joint ventures in the current year - -
(4) Summarized financial information of immaterial associates
Unit: RMB
30 Jun. 2015/ 31 Dec. 2014/
Jan.-Jun. 2015 Jan.-Jun. 2014
Associates:
Total carrying amounts of investment 439,030,643.96 431,938,190.49
Aggregate of following items calculated based on the
i
- Net profit f hi i 7,018,404.58 6,083,461.17
- Other comprehensive income - -
- Total comprehensive income 7,018,404.58 6,083,461.17
(5) As at 30 June 2015, the long-term equity investments of the Group were not subject to
restriction on disposal or remittance of return on investments.
- 82 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IX) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Group's major financial instruments include currency funds, available-for-sale financial assets,
borrowings, equity investments, account receivables, account payables, bond payables etc. Details
of these financial instruments are disclosed in Note (VI). The risks associated with these financial
instruments and the policies on how to mitigate these risks are set out below. Management
manages and monitors these exposures to ensure the risks are monitored at a certain level.
The Group adopts sensitivity analysis techniques to analyze how the entity's profit or loss and for
the period and shareholders' equity would have been affected by changes in the relevant risk
variables that were reasonably possible. As it is unlikely that risk variables will change in an
isolated manner, and the interdependence between risk variables will have significant effect on
the amount ultimately influenced by the changes in a single risk variable, the following items are
based on the assumption that each risk variable has changes on a stand-alone basis.
1. Risk management objectives and policies
The Group's risk management objectives are to achieve proper balance between risks and yield,
minimize the adverse impacts of risks on the Group's operation performance, and maximize the
benefits of the shareholders and other equity investors. Based on these risk management
objectives, the Group's basic risk management strategy is to identify and analyze the industry's
exposure to various risks, establish appropriate bottom line for risk tolerance, implement risk
management, and monitors these exposures to ensure the risks are monitored at a certain level.
1.1 Market risk
1.1.1 Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The
Group's exposure to the currency risk is primarily associated with USD and HKD. Several of the
Group's subsidiaries have purchases and sales denominated in HKD while the Group's other
principal activities are denominated and settled in RMB. As at 30 June 2015, the balance of the
Group's assets and liabilities are both denominated in functional currency, except that balance of
assets set out below is in HKD and USD. Currency risk arising from the foreign currency balance
of assets and liabilities may have impact on the Group's performance.
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Currency funds 105,102,984.57 135,389,164.08
- HKD 96,382,884.47 93,998,461.64
- USD 8,720,100.10 41,390,702.44
Accounts receivable 23,790,614.97 12,150,030.98
- HKD 11,104,616.98 7,072,686.27
- USD 12,685,997.99 5,077,344.71
Short-term borrowings 133,294,087.68 -
- HKD 133,294,087.68 -
Accounts payable 33,721,363.07 2,738,005.02
- HKD 7,345,820.03 2,726,471.14
- USD 26,375,543.04 11,533.88
- 83 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IX) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.1.1 Currency risk - continued
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's
currency risk exposures, to minimize the company's currency risk. According to the current risk
exposure and judgment of the exchange rate movements, management considers the probable
heavy loss resulted from foreign exchange rate fluctuation to be fairly low.
Sensitivity analysis on currency risk
The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and
hedges of a net investment in a foreign operation are highly effective. On the basis of the above
assumption, where all other variables are held constant, the reasonably possible changes in the
foreign exchange rate may have the following pre-tax effect on the profit or loss for the period or
equity:
Unit: RMB
Jan.-Jun. 2015 Jan.-Jun. 2014
Effect on Effect on
Changes in shareholders' shareholders'
Item exchange rate Effect on profits equity Effect on profits equity
All foreign 5% appreciation
(1,906,092.56) (1,906,092.56) (15,596,704.42) (15,596,704.42)
currencies against RMB
All foreign 5% depreciation
1,906,092.56 1,906,092.56 15,596,704.42 15,596,704.42
currencies against RMB
1.1.2 Interest rate risk - changes in cash flow
Risk derived from changes in cash flow of financial instruments is mainly related to bank loan
with floating interest rate. At 30 June 2015, the Group has no bank loan with floating interest rate,
therefore, the management believes that the risk derived from changes in cash flow of financial
instrument is relatively low.
1.1.3 Other price risk
Available-for-sale financial assets are measured at fair value by the Group at the balance sheet
date. Hence the Group takes risk of changes in the securities market. The Group closely monitors
the effects of changes in the foreign exchange prices on the Group's equity investment securities.
The Group has not taken any measures to reduce prices risk of equity investment securities.
1.2 Credit risk
As at 30 June 2015, the Group's maximum exposure to credit risk which will cause a financial
loss to the Group due to failure to discharge an obligation by the counterparties and financial
guarantees issued by the Group is arising from the carrying amount of the respective recognized
financial assets as stated in the consolidated balance sheet. For financial instruments measured at
fair value, the carrying amount reflects the exposure to risks but not the maximum exposure to
risks; the maximum exposure to risks would vary according to the future changes in fair value.
- 84 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(IX) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.2 Credit risk - continued
In order to minimize the credit risk, the Group has delegated a team responsible for determination
of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action
is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each
individual trade debt at each balance sheet date to ensure that adequate impairment losses are
made for irrecoverable amounts. In this regard, the management of the Group considers that the
Group's credit risk is significantly reduced.
The credit risk on liquid funds is limited because the counterparties are banks with high credit
ratings.
The Company adopted necessary policies to make sure that all clients and customers are attributed
with merit credit records.
1.3 Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and
cash equivalents deemed adequate by the management to finance the Group's operations and
mitigate the effects of fluctuations in cash flows. The management monitors the utilization of
bank borrowings and ensures compliance with loan covenants.
As at 30 June 2015, the Group has net current liabilities of RMB528,339,059.39 (2014:
RMB213,978,406.57). The Group has available unutilized bank loan facilities of approximately
RMB 3,091,450,000.00 (2014: RMB3,155,005,000.00). Consequently, the management believes
that the Group is not exposed to significant liquidity risks.
The following is the maturity analysis for financial assets and financial liabilities held by the
Group which is based on undiscounted remaining contractual obligations:
Unit: RMB
More than 5
Item Book value Total amount Within one year 1-5 years years
The non-derivative financial assets
Currency funds 308,172,676.22 308,172,676.22 308,172,676.22 - -
Notes receivable - - - - -
Accounts receivable 232,985,841.73 232,985,841.73 232,985,841.73 - -
Interest receivable 56,147.20 56,147.20 56,147.20 - -
Other receivables 40,805,056.79 40,805,056.79 40,805,056.79 - -
Available-for-sale financial
23,589,200.00 23,589,200.00 23,589,200.00 - -
assets
The non-derivative financial liabilities
Accounts payable 79,898,367.91 79,898,367.91 79,898,367.91 - -
Interest payable 23,147,210.76 23,147,210.76 23,147,210.76 - -
Dividends payable 208,903,448.33 208,903,448.33 208,903,448.33 - -
Other payable 85,912,500.32 85,912,500.32 85,912,500.32 - -
Other current liabilities 500,000,000.00 513,201,693.99 513,201,693.99 - -
Bonds payable 497,361,095.91 584,038,356.16 28,000,000.00 556,038,356.16 -
- 85 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(X) FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Unit: RMB
30 Jun. 2015
Item Level 1 Level 2 Level 3 Total
Measurements at fair value
continuously
Available-for-sale financial assets: 9,680,000.00 - - 9,680,000.00
- Equity instruments (Note) 9,680,000.00 - - 9,680,000.00
Total assets measured at fair value
9,680,000.00 - - 9,680,000.00
continuously
Note: The available-for-sale financial assets held by the Company represent the fair value of the
circulating shares of Jiang Su Ninghu Expressway Company Ltd at 30 June 2015.
1. Basis for determining the market price measured at fair value at level I continuously
The market price of assets and liabilities measured at fair value at level I continuously is
determined by the Shanghai stock exchange closing price of equity instruments at 30 June 2015.
3. Information of financial assets and financial liabilities that are not measured at fair value
The management considers that the book value of financial assets and liabilities measured at
amortized cost is approximately equal to the fair value of financial assets and liabilities.
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Unit: RMB
Proportion of the entity's Proportion of the entity's
Related party Type of the Place of Legal Nature of ownership interests held voting power held by the
Name of the parent relationship entity incorporation representative business Issued share capital by the parent (%) parent (%)
Listed in
CMHI Parent company Hong Kong Li Jiang Hong Port shipping HKD17,917,534,313 - 66.10(Note)
Hong Kong
Note: CMHI obtained 8.58% equity via its subsidiary Jing Feng Company, 25% of the shares via
its subsidiaries Shenzhen Malai Warehouse Co., Ltd., and obtained another 32.52% equity by
entrustment of Nanshan Group's stock, accordingly holding totally 66.10% of the voting shares.
So CMHI is the parent company of the company.
2. Subsidiaries of the Company
The general background and other related information of the subsidiaries are set out in Note (VIII)
1.
- 86 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
3. Associates and joint ventures of the Company
The general background and other related information of the associates and joint ventures are set
out in Note (VIII) 2.
Other joint venture or associates, which have been transacted with the Group for the period or the
prior period are as follows:
Associates name Relationship with the Company
China Development Finance Company LTD. The Group's associates
4. Other related parties of the Company
Relationships between other related
Name of other related parties parties and the Company
Haiqin Engineering Controlled by the same parent company
Shenzhen Mawan Terminals Co., Ltd. ("SMT") Controlled by the same parent company
Shenzhen Mawan Port Co., Ltd. ("SMP) Controlled by the same parent company
China Merchants Port Services (Shenzhen) Co., Ltd ("CMPS") Controlled by the same parent company
Shekou Container Terminals Limited ("SCT") Controlled by the same parent company
An Xunjie Container Terminals Limited Controlled by the same parent company
Shenzhen Lian Yunjie Container Terminals Limited Controlled by the same parent company
Shenzhen Haixing Harbor Development Co.,Ltd("Haixing") Controlled by the same parent company
Shenzhen Huxing Tug Service Co., Ltd. Controlled by the same parent company
Shenzhen Lianda Tug Service Co., Ltd. Controlled by the same parent company
China Ocean Shipping Agency (Shenzhen) Company Limited Controlled by the same parent company
Shenzhen Malai Warehouse Co., Ltd. Controlled by the same parent company
China Merchants Container Services Ltd. Controlled by the same parent company
Shenzhen Mawan Wharf Co., Ltd. ("SMW") Controlled by the same parent company
Hidoney Developments Co., Ltd. ("Hidoney ") Controlled by the same parent company
Laizhou Hairun of Port Management Co. Ltd. A subsidiary of the associate
China Merchants International Cold Chain (Shenzhen) Company Limited ("CMCCL") Controlled by the same ultimate actual controller
Shenzhen China Merchants Shangzhi Investment Co., Ltd. Controlled by the same ultimate actual controller
Shenzhen China Merchants Qianhaiwan Property Co., Ltd. Controlled by the same ultimate actual controller
Shenzhen China Merchants International Shipping Agency Co., Ltd. Controlled by the same ultimate actual controller
Youlian shipyard Shekou Co. Ltd. Controlled by the same ultimate actual controller
Shenzhen China Merchants Property Management Co., Ltd. Controlled by the same ultimate actual controller
Guangzhou International Ocean Shipping Agency Co., Ltd. Controlled by the same ultimate actual controller
China Shenzhen Ocean Shipping Tally Shenzhen Co., Ltd. Controlled by the same ultimate actual controller
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. ("Chiwan Base ") Influenced significantly by parent company
Zengcheng Xinkang property Co., Ltd. Influenced significantly by parent company
Shenzhen Baowan international logistics Co., Ltd. Influenced significantly by parent company
Shenzhen Chiwan Property Management Co., Ltd. Influenced significantly by parent company
Shenzhen Xuqin Industrial Development Co., Ltd.(“Xuqin”) Influenced significantly by parent company
Invetsor that has significance influence on the
Nanshan Group
company
Influenced significantly by the ultimate actual
China Merchant Bank Co., Ltd.("CMB")
controller
- 87 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions
(1) Provision and receipt of services
Unit: RMB
Pricing and decision-
Jan.-Jun. 2015 Jan.-Jun. 2014
Content of related party making procedures of
Related parties transaction related party transactions
Receipt of services :
Haixing Load and unload service Negotiation 2,141,837.73 2,383,755.00
China Merchants Holdings (International) Information Technology
Technical service fee Negotiation 1,261,894.33 1,078,561.44
Company Ltd
Shenzhen Chiwan Property Management Co., Ltd. Property management fee Negotiation 999,432.50 1,149,854.30
Xuqin Construction Negotiation 525,992.00 1,022,902.10
Zengcheng Xinkang property Co., Ltd. Property management fee Negotiation 335,901.20 285,936.00
Haiqin Engineering Project management Negotiation 257,194.15 -
China Merchants Container Services Ltd. Transport Service Negotiation 245,915.12 -
CMBL Load and unload service Negotiation 240,067.00 -
China Ocean Shipping Agency (Shenzhen) Company Limited Agency service Negotiation 107,955.00 17,640.00
Shenzhen Lianda Tug Service Co., Ltd. Tugboat service Negotiation 84,476.25 201,044.50
Shenzhen China Merchants Property Management Co., Ltd. Property management fee Negotiation 74,088.90 467,768.56
SMW Load and unload service Negotiation 39,456.60 -
Shenzhen Huxing Tug Service Co., Ltd. Tugboat service Negotiation 11,686.42 11,097.00
Shenzhen China Merchants International Shipping Agency Co., Ltd. Agency service Negotiation 4,925.51 199,313.14
SCT Load and unload service Negotiation - 47,616.00
Chiwan Base Property management fee Negotiation - 19,930.50
SMP Load and unload service Negotiation - 13,228.80
Total 7,340,502.50 6,898,647.34
Rendering of services:
SMT Trailer service etc. Negotiation 6,701,000.23 5,480,569.05
SCT Trailer service etc. Negotiation 6,215,150.37 708,850.00
SMP Trailer service etc. Negotiation 5,019,970.32 1,929,582.33
China Ocean Shipping Agency (Shenzhen) Company Limited Tugboat service Negotiation 3,990,159.84 2,406,443.34
Shenzhen China Merchants International Shipping Agency Co., Ltd. Tugboat service Negotiation 1,068,751.71 1,150,437.60
Shenzhen Lianda Tug Service Co., Ltd. Tugboat service Negotiation 689,351.72 89,230.25
CMBL Trailer service etc. Negotiation 636,094.34 2,882,059.68
Youlian shipyard Shekou Co. Ltd. Shipping service Negotiation 334,232.40 -
Guangzhou International Ocean Shipping Agency Co., Ltd. Berthage fee Negotiation 282,226.00 -
CMCCL Load and unload service Negotiation 273,894.66 216,777.00
Shenzhen Huxing Tug Service Co., Ltd. Tugboat service Negotiation 45,788.21 12,282.00
China Shenzhen Ocean Shipping Tally Shenzhen Co., Ltd. Dispatch income Negotiation 32,790.00 -
Zengcheng Xinkang property Co., Ltd. Others Negotiation 3,302.51 3,112.63
Total 25,292,712.31 14,879,343.88
- 88 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties
The Group as the lessor:
Unit: RMB
Lease income Lease income
recognised in the recognised in the
Name of lessee Type of leased assets current year previous year
Chiwan Base Coastal line, packing yards and road lighting 6,095,250.00 5,982,634.64
CMBL Crane 932,038.86 960,000.00
Total 7,027,288.86 6,942,634.64
The Group as the lessee:
Unit: RMB
Lease payment
Lease payment recognised in
recognised in the previous
Name of lessor Type of leased assets the current year year
Land, Office and
Nanshan Group 31,962,834.21 29,420,925.56
packing yard
Shenzhen Malai Warehouse Co., Ltd. Office 3,613,869.00 3,613,869.00
CMPS Former Bay port lands 1,584,900.00 1,679,994.00
Chiwan Base Office 734,456.40 715,691.90
SCT Crane 341,616.00 360,000.00
Shenzhen China Merchants Qianhaiwan Property
Staff dormitory 131,522.50 182,652.00
Co., Ltd.
Shenzhen China Merchants Shangzhi Investment
Buildings 89,568.00 579,475.00
Co., Ltd.
Shenzhen Baowan international logistics Co., Ltd. Warehouse 54,954.23 54,673.53
Total 38,513,720.34 36,607,280.99
(3) Compensation for key management personnel
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Compensation for key management personnel 4,269,210.00 5,817,400.00
- 89 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties
Unit: RMB
Item Related parties 30 Jun. 2015 31 Dec. 2014
Cash and bank China Merchants Bank 94,554,623.24 100,147,455.36
China Development Finance Company LTD. 944,428.25 50,520,314.97
Total 95,499,051.49 150,667,770.33
Accounts receivable SCT 8,365,700.00 5,438,480.00
Chiwan Base 6,095,250.00 93,393.09
SMP 1,948,514.66 821,332.45
China Ocean Shipping Agency (Shenzhen)
1,766,161.40 867,728.60
Company Limited
SMT 1,537,916.75 1,429,055.00
CMBL 338,588.00 207,090.00
Shenzhen China Merchants International
131,338.00 122,789.00
Shipping Agency Co., Ltd.
China Overseas Harbour Affairs (Laizhou)
- 559,663.44
Co., Ltd
Shenzhen Lianda Tug Service Co., Ltd. - 65,591.25
Others 169,439.00 108,011.58
Total 20,352,907.81 9,713,134.41
Other receivables SMP 10,656,205.04 5,008,548.13
CMBL 2,467,672.00 3,041,907.46
SMT 1,157,893.12 10,053,588.97
Nanshan Group 1,073,272.09 1,523,561.88
Shenzhen China Merchants Qianhaiwan
654,480.00 448,820.00
Property Co., Ltd.
Xuqin 320,000.00 320,000.00
Chiwan Base 135,621.91 135,621.91
Shenzhen China Merchants Shangzhi
63,964.00 62,482.00
Investment Co., Ltd.
Shenzhen China Merchants Property
12,452.00 12,452.00
Management Co., Ltd.
Others 128,181.76 92,863.00
Total 16,669,741.92 20,699,845.35
Accounts payable Nanshan Group 17,854,269.10 9,718,184.39
Xuqin 459,242.00 1,353,465.08
China Merchants Container Services Ltd. 160,098.18 -
Zengcheng Xinkang property Co., Ltd. 150,810.50 138,310.50
China Merchants Holdings (International)
13,850.00 13,850.00
Information Technology Company Ltd.
SMW - 1,399,460.00
Others 168,258.00 144,735.98
Total 18,806,527.78 12,768,005.95
Dividends payable Nanshan Group 67,938,609.71 -
Shenzhen Malai Warehouse Co., Ltd. 52,225,862.29 -
Hidoney - 52,867,231.42
Total 120,164,472.00 52,867,231.42
- 90 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
Unit: RMB
Item Related parties 30 Jun. 2015 31 Dec. 2014
Other payables China Merchants Container Services Ltd. 1,671,198.18 288,320.00
Haiqin Engineering 1,084,865.00 381,740.00
Shenzhen Malai Warehouse Co., Ltd. 734,456.40 -
China Merchants Holdings
(International) Information Technology 608,156.15 488,963.00
Company Ltd.
SMP 409,211.00 409,211.00
Nanshan Group 384,246.25 61,472.00
SCT 282,492.61 855,383.21
CMBL 181,291.78 88,186.88
SMT 44,776.00 76,456.00
Xuqin 15,558.60 180,252.32
Chiwan Base 10,000.00 55,436.00
Others 7,495.14 18,233.00
Total 5,433,747.11 2,903,653.41
(XII) COMMITMENTS
1. Capital commitments
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Capital commitments that have been entered into but have not
been recognised in the financial statements:
- Commitment for acquisition of long-term assets 47,867,928.88 72,245,147.93
2. Operating lease commitments
As of the balance sheet date, the Group had the following commitments in respect of non-
cancellable operating leases:
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Minimum lease payments under non-cancellable operating leases:
1st year subsequent to the balance sheet date 17,486,603.45 22,600,904.11
2nd year subsequent to the balance sheet date 389,361.36 507,861.36
3rd year subsequent to the balance sheet date 280,341.36 280,341.36
More than 3 years 884,035.36 1,023,822.01
Total 19,040,341.53 24,412,928.84
3. Contingencies
No material contingencies that should be disclosed by the Group.
- 91 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XIII) EVENTS AFTER THE BALANCE SHEET
1. Profit appropriation
Unit: RMB
Item Amount
Proposed distribution of profits or dividends (Note) 208,903,448.52
Note: Please refer to Note (VI) 39.
2. Merger by absorbing subsidiary
According to a proposal made at the fifth session of the seventh Board of Directors held on 23
April 2013 and 2012 Annual Shareholders' General Meeting held on 21 May 2013, the Company
is approved to merge Shenzhen Chiwan Trains-Grains Terminal Company Limited and Shenzhen
Chiwan Terminal Company Limited by absorption.
On 7 January 2015, Economy, Trade and Information Commission of Shenzhen Municipality
released Reply to the Company's Proposed Merge of Shenzhen Chiwan Trains-Grains Terminal
Company Limited (filed as Shen Jing Mao Xin xi [2015]No.24), agreeing the merger of the
Company and Shenzhen Chiwan Trains-Grains Terminal Company Limited by absorption.
On 22 January 2015, Shenzhen Chiwan Trains-Grains Terminal Company Limited completed the
procedure of cancellation of registration at Economy, Trade and Information Commission of
Shenzhen Municipality.
3. To exercise the redemption option of issuer for corporate bond issued in 2011(Phase one)
According to a proposal , Bill for redeeming the bond issued in 2011,made at second
extraordinary session of the eighth Board of Directors held on 12 March 2015, the company made
a decision to exercise the redemption option of issuer for corporate bond issued in 2011(Phase
one). The company would redeem all the corporate bond of 11 Chiwan 01 registered at
registration date of redemption at par value plus interests for the current period, at the agreed
maturity date stated in bond prospectus, 27 April 2015.
(XIV) OTHER SIGNIFICANT EVENTS
1. Supplementary pension plan
At 3th June 2008, the Group participated in the supplementary pension plan of Nanshan Group
approved by Shenzhen government. Funds involved were deposited in the managed account
coordinated by Nanshan Group. Staffs would be qualified if the following requirements are met
simultaneously.(i)Staff with labor contracts signed. (ii)Staff with basic pension participated in.
(iii)On-the job and in-service staff with probation expired. (iv)Voluntarily participated in the plan
and perform the obligation of payment.The Group and staffs share the payment of the
supplementary pension. Excess payment would not be allowed so as to keep the payment made by
the Group and total payment made by the Group and the individual under the limit of one-twelfth
and the one-sixth of the prior year's gross payroll respectively.
- 92 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XIV) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting
(1) Basis for determining and accounting treatments of reporting segments
Subject to the Group's in-house infrastructure, management requirements and internal reporting
system, the operation businesses of the Group are classified into three reporting segments
determined based on the nature of business. The Group's management periodically evaluates the
operating results of these reporting segments to make decisions about resources to be allocated to
the segments and assess their performance. Major products and services delivered or provided by
each of the reporting segments are load and unload services, trailer and tugboat business, agency
services and other segments.
Segment information is disclosed in accordance with the accounting policies and measurement
standards adopted by each segment when reporting to management. The measurement basis is
consistent with the accounting and measurement basis in the preparation of the financial
statements.
- 93 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XIV) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting - continued
(2) Segment financial information
Unit: RMB
Load and unload services Trailer and tugboat business Agency services Unappropriated items Inter-segment deduction Total
Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014
Operating income
Revenue arising from external
829,240,305.95 825,037,404.52 45,315,696.51 42,229,355.84 6,232,006.32 8,714,481.23 - - 880,788,008.78 875,981,241.59
transactions
Revenue arising from inter-segment
- - 29,234,240.41 29,613,140.88 - - - - (29,234,240.41) (29,613,140.88) - -
transactions
Total operating income 829,240,305.95 825,037,404.52 74,549,936.92 71,842,496.72 6,232,006.32 8,714,481.23 - - (29,234,240.41) (29,613,140.88) 880,788,008.78 875,981,241.59
Reconciling items:
Operating Income in the financial statements 880,788,008.78 875,981,241.59
Operating cost 438,850,615.83 435,215,993.40 53,470,195.84 56,639,023.46 340,940.33 424,247.16 - - (29,234,240.41) (29,613,140.88) 463,427,511.59 462,666,123.14
Segment operating profits 390,389,690.12 389,821,411.12 21,079,741.08 15,203,473.26 5,891,065.99 8,290,234.07 - - - - 417,360,497.19 413,315,118.45
Reconciling items:
Business taxes and surcharges 2,529,104.09 2,255,440.28 86,179.31 17,399.20 1,302,213.48 1,523,058.63 - - - - 3,917,496.88 3,795,898.11
General and administrative expenses 59,508,690.44 53,719,550.44 6,202,442.16 5,550,019.53 3,344,646.80 4,249,932.21 15,146,092.52 14,346,177.01 - - 84,201,871.92 77,865,679.19
Financial expenses 15,837,290.68 22,579,184.95 (529,678.06) (445,377.43) (29,532.12) 5,662.10 18,892,719.79 15,056,293.32 - - 34,170,800.29 37,195,762.94
Impairment losses of assets 153,277.43 777,550.40 - - - (25,381.49) - - - - 153,277.43 752,168.91
Investment Income - - - - - - 48,834,997.32 44,428,745.69 - - 48,834,997.32 44,428,745.69
Operating profit 312,361,327.48 310,489,685.05 15,320,797.67 10,081,431.96 1,273,737.83 2,536,962.62 14,796,185.01 15,026,275.36 - - 343,752,047.99 338,134,354.99
Non-operating income 1,012,630.77 4,605,897.44 - 0.08 - - - - - - 1,012,630.77 4,605,897.52
Non-operating expenses 47,076.40 87,464.08 46,970.40 6,252.57 1,537.90 50.00 - - - - 95,584.70 93,766.65
Gross profit 313,326,881.85 315,008,118.41 15,273,827.27 10,075,179.47 1,272,199.93 2,536,912.62 14,796,185.01 15,026,275.36 - - 344,669,094.06 342,646,485.86
Income tax expenses 30,881,924.19 48,340,625.19 3,399,706.82 2,518,785.87 176,900.15 408,193.79 1,972,722.15 - - 34,458,531.16 53,240,327.00
Net profit 282,444,957.66 266,667,493.22 11,874,120.45 7,556,393.60 1,095,299.78 2,128,718.83 14,796,185.01 13,053,553.21 - - 310,210,562.90 289,406,158.86
- 94 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XIV) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting - continued
(2) Segment financial information - continued
Unit: RMB
Load and unload services Trailer and tugboat business Agency services Unappropriated items Inter-segment deduction Total
Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014 Jan.-Jun. 2015 Jan.-Jun. 2014
Total segment assets
Total assets in the financial
5,204,261,977.63 4,991,991,603.94 214,256,543.39 172,748,616.55 36,769,361.05 40,322,870.71 7,240,499,230.08 7,804,234,381.96 (5,984,176,786.52) (5,538,870,859.79) 6,711,610,325.63 7,470,426,613.37
statements
Total segment liabilities
Total liabilities in the financial
1,503,160,043.11 1,235,680,553.70 117,545,119.39 115,183,687.62 27,417,898.60 31,794,400.13 1,876,227,583.15 2,590,738,397.08 (1,792,016,080.20) (1,269,782,761.47) 1,732,334,564.05 2,703,614,277.06
statements
Supplementary information
Depreciation 94,945,527.24 88,518,473.94 5,688,138.37 5,355,948.27 358,281.40 375,822.75 89,980.37 89,145.61 - - 101,081,927.38 94,339,390.57
Amortization 20,579,906.06 22,582,683.48 8,748.12 8,748.12 - - 402,656.15 680,046.54 - - 20,991,310.33 23,271,478.14
Interest income 422,535.25 1,945,599.49 46,382.11 2,699.22 2,746.98 4,992.16 2,604,180.24 3,908,611.91 - - 3,075,844.58 5,861,902.78
Interest expense 169,328.56 7,653,282.94 - - - - 35,718,696.77 29,107,068.98 - - 35,888,025.33 36,760,351.92
Investment income from long-
term equity investment under - - - - - - 48,454,997.32 42,846,690.90 - - 48,454,997.32 42,846,690.90
equity method
Long-term equity investment - - - - - - 1,511,009,595.85 1,587,928,734.31 - - 1,511,009,595.85 1,587,928,734.31
Non-current assets other than
4,419,526,451.64 4,519,642,193.21 129,617,569.96 139,772,769.20 16,849,555.39 17,561,091.18 183,240,200.52 207,304,061.95 (162,765,586.89) (157,909,567.98) 4,586,468,190.62 4,726,370,547.56
long-term equity investment
- 95 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XIV) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting – continued
(3) Segment revenue from external transactions by source and non-current assets by geographical
location
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Revenue from external transactions with domestic customers 878,925,546.75 873,585,381.02
Revenue from external transactions with Hong Kong customers 1,862,462.03 2,395,860.57
Total 880,788,008.78 875,981,241.59
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Non-current assets located in local country 4,551,743,208.58 4,639,052,749.99
Non-current assets located in Hong Kong 23,396.06 29,953.28
Total 4,551,766,604.64 4,639,082,703.27
(4) Degree of reliance on major customers
The revenue derived from the top two clients of the Group in load and unload services is
RMB268,103,571.39, occupying 30.44% of the Group's total revenue.
(XV) NOTES TO THE FINANCIAL STATEMENTS
1. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Carrying amount Bad debt provision Carrying amount Bad debt provision
Proportion Proportion Proportion
Item Amount (%) Amount (%) Book value Amount (%) Amount Proportion (%) Book value
Accounts receivable
that are individually
significant and for
which bad debt - - - - - - - - - -
provision has been
assessed
individually(Note 1)
Accounts receivable for which bad debt provision has been assessed by credit risk portfolios
Portfolio 1 (Note 2) 7,038,029.81 21.74 - - 7,038,029.81 695,656.53 5.74 - - 695,656.53
Portfolio 2 25,337,926.65 78.26 - - 25,337,926.65 11,419,067.84 94.26 - - 11,419,067.84
Subtotal of portfolios 32,375,956.46 100.00 - - 32,375,956.46 12,114,724.37 100.00 - - 12,114,724.37
Accounts receivable
that are not
individually
significant but for - - - - - - - - - -
which bad debt
provision has been
assessed individually
Total 32,375,956.46 100.00 - - 32,375,956.46 12,114,724.37 100.00 - - 12,114,724.37
- 96 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XV) NOTES TO THE FINANCIAL STATEMENTS - continued
1. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued
Accounts receivable portfolios for which bad debt provision has been assessed using the aging
analysis approach:
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Carrying Bad debt Proportion Bad debt Proportion
Aging amount provision (%) Book value Carrying amount provision (%) Book value
Within 1 year 25,337,926.65 - - 25,337,926.65 11,419,067.84 - - 11,419,067.84
(2) Top five balances of accounts receivable
Unit: RMB
Proportion of
the amount to
Relationship the total
with the accounts Bad debt
Name of entity Company Amount receivable (%) provision
Fuzhiyuan Feedstuff Protein
Customer 8,771,245.99 27.09 -
Development Co.,Ltd.Dongguan
Shenzhen Chiwan Petroleum Supply
Customer 6,095,250.00 18.83 -
Base Co., Ltd.
COFCO Trading Co., Ltd. Customer 3,168,288.70 9.79 -
Jiangsu Suliang Wheat Co., Ltd. Customer 2,159,533.67 6.67 -
Xiamen Mingsui Grains&Oils
Customer 1,719,320.82 5.31 -
Trading Co., Ltd.
Total 21,913,639.18 67.69 -
2. Other receivables
(1) Disclosure of other receivables by categories
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Carrying amount Bad debt provision Carrying amount Bad debt provision
Proportion Proportion Proportion Proportion
Category Amount (%) Amount (%) Book value Amount (%) Amount (%) Book value
Other receivables that are
individually significant and for which
- - - - - - - - - -
bad debt provision has been assessed
individually
Other receivables for which bad debt provision has been assessed by credit risk portfolios
Portfolio 1 757,504,972.92 99.78 - - 757,504,972.92 825,995,030.84 99.93 - - 825,995,030.84
Portfolio 2 1,635,308.64 0.22 383,456.60 23.45 1,251,852.04 563,634.80 0.07 383,456.60 68.03 180,178.20
Subtotal of portfolios 759,140,281.56 100.00 383,456.60 0.05 758,756,824.96 826,558,665.64 100.00 383,456.60 0.05 826,175,209.04
Other receivables that are not
individually significant but for which
bad debt provision has been assessed - - - - - - - - - -
individually
Total 759,140,281.56 100.00 383,456.60 0.05 758,756,824.96 826,558,665.64 100.00 383,456.60 0.05 826,175,209.04
- 97 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XV) NOTES TO THE FINANCIAL STATEMENTS - continued
2. Other receivables - continued
(1) Disclosure of other receivables by categories - continued
Other receivables portfolios for which bad debt provision has been assessed using the aging
analysis
Unit: RMB
30 Jun. 2015 31 Dec. 2014
Carrying Bad debt Proportion Carrying Bad debt Proportion Book
Aging amount provision (%) Book value amount provision (%) value
Within 1 year 1,251,852.04 - - 1,251,852.04 180,178.20 - - 180,178.20
More than 1 year - - - - - - - -
More than 2 years but
- - - - - - - -
not exceeding 3 years
More than 3 years 383,456.60 383,456.60 100.00 - 383,456.60 383,456.60 100.00 -
Total 1,635,308.64 383,456.60 23.45 1,251,852.04 563,634.80 383,456.60 68.03 180,178.20
(2) Disclosure of other receivables by nature
Unit: RMB
Item 30 Jun. 2015 31 Dec. 2014
Temporary payments 1,227,103.22 4,407,604.66
Deposits 594,650.38 554,934.56
Others 757,318,527.96 821,596,126.42
Including: amounts due from subsidiaries 753,957,526.50 820,189,909.43
Total 759,140,281.56 826,558,665.64
(3) Top five balances of other receivables
Unit: RMB
Proportion of the
amount to the total
accounts receivable
Name of entity Nature of the fund Amount Aging (%) Bad debt provision
Temporary
Dongguan Chiwan Terminal
payment due from 469,389,909.43 Within one year 61.83 -
Company Limited
subsidiaries
Temporary
Dongguan Chiwan Wharf Co.,
payment due from 281,500,000.00 Within one year 37.08 -
Ltd.
subsidiaries
Temporary
Chiwan Wharf Holdings (H.K.)
payment due from 2,842,822.38 Within one year 0.37 -
Limited
subsidiaries
Other payments
Nanshan Group from Related 1,022,760.39 Within one year 0.13 -
parties
Temporary
Fuzhiyuan Feedstuff Protein
payment due from 685,077.00 Within one year 0.09 -
Development Co.,Ltd.Dongguan
Customer
Total 755,440,569.20 99.50 -
- 98 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XV) NOTES TO THE FINANCIAL STATEMENTS - continued
3. Long-term equity investments
Unit: RMB
Changes
Reconciling items
Investment income from other Closing value of
under equity comprehensive Other equity Cash dividends Provision for provision for
Investee 31 Dec. 2014 Increase Decrease method income movements announced of issuance impairment Others 30 Jun. 2015 impairment
I. Subsidiaries
Shenzhen Chiwan International Freight
5,500,000.00 - - N/A N/A N/A N/A - - 5,500,000.00 -
Agency Company Limited
Shenzhen Chiwan Harbor Container
250,920,000.00 - - N/A N/A N/A N/A - - 250,920,000.00 -
Company Limited
Shenzhen Chiwan Transportation
7,000,000.00 - - N/A N/A N/A N/A - - 7,000,000.00 -
Company Limited
Chiwan Wharf Holdings (H.K.) Limited 1,070,000.00 - - N/A N/A N/A N/A - - 1,070,000.00 -
Shenzhen Chiwan Tugboat Co., Ltd. 24,000,000.00 - - N/A N/A N/A N/A - - 24,000,000.00 -
Shenzhen Chiwan Trains-Grains Terminal
33,750,000.00 - - N/A N/A N/A N/A - - 33,750,000.00 -
Company Limited
Chiwan Container Terminal Company
421,023,199.85 - - N/A N/A N/A N/A - - 421,023,199.85 -
Limited
Dongguan Chiwan Wharf Company
186,525,000.00 - - N/A N/A N/A N/A - - 186,525,000.00 -
Limited
Dongguan Chiwan Terminal Company
175,000,000.00 - - N/A N/A N/A N/A - - 175,000,000.00 -
Limited
Subtotal 1,104,788,199.85 - - 1,104,788,199.85 -
II. Associates
China Merchants Holdings (International)
14,654,011.40 - - 440,040.00 - - - - - 15,094,051.40 -
Information Technology Company Ltd.
CMBL 138,060,583.99 - - 1,932,219.97 - - - - - 139,992,803.96 -
China Development Finance Co., Ltd. 105,202,034.31 - - 2,787,973.53 - - - - - 107,990,007.84 -
Subtotal 257,916,629.70 - - 5,160,233.50 - - - - - 263,076,863.20 -
III. Joint ventures
China Overseas Harbor Affairs (Laizhou)
761,613,322.04 - - 23,873,557.00 - - 30,785,676.49 - - 754,701,202.55 -
Co., Ltd
Total 2,124,318,151.59 - - 29,033,790.50 - - 30,785,676.49 - - 2,122,566,265.60 -
- 99 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XV) NOTES TO THE FINANCIAL STATEMENTS - continued
4. Operating income and operating costs
Unit: RMB
Jan.-Jun. 2015 Jan.-Jun. 2014
Item Income Cost Income Cost
Principal operating 110,629,730.60 69,165,463.86 94,236,110.67 83,067,572.46
Other operating 16,518,108.02 495,265.13 15,197,909.54 578,571.96
Total 127,147,838.62 69,660,728.99 109,434,020.21 83,646,144.42
5. Investment income
(1) Details of investment income
Unit: RMB
Item Jan.-Jun. 2015 Jan.-Jun. 2014
Income of long-term equity investments under cost method - -
Income of long-term equity investments under equity method 29,033,790.50 19,632,778.04
Investment income on available-for-sale financial assets, etc. 380,000.00 380,000.00
Others - 1,202,054.79
Total 29,413,790.50 21,214,832.83
6. Related party transactions
(1) Provision and receipt of services
Unit: RMB
Pricing and decision-
making procedures
Jan.-Jun. 2015 Jan.-Jun. 2014
Content of related party of related party
Related parties transaction transactions
Receipt of services :
Xuqin Landscape engineering Negotiation 264,907.00 344,228.60
China Merchants Container Services Ltd. Transport services Negotiation 245,915.12 -
Shenzhen Chiwan Transportation Company Limited Transport services Negotiation 217,933.96 2,007,456.60
Shenzhen Chiwan Property Management Co., Ltd. Property management Negotiation 202,133.70 270,276.40
Haixing Load and unload service Negotiation 60,828.30 -
China Merchants Holdings (International) Information Technology
Technical service Negotiation 36,226.44 36,226.44
Company Ltd.
SMW Load and unload service Negotiation 30,400.00 -
Shenzhen China Merchants International Shipping Agency Co., Ltd. Agency service Negotiation 4,925.51 199,313.14
Total 1,063,270.03 2,857,501.18
Rendering of services:
Dongguan Chiwan Wharf Company Limited Dispatch income Negotiation 7,149,956.00 5,144,081.58
China Ocean Shipping Agency (Shenzhen) Company Limited Berthage fee Negotiation 53,372.64 352,827.74
China Shenzhen Ocean Shipping Tally Shenzhen Co., Ltd. Load and unload service Negotiation 32,790.00 -
Shenzhen China Merchants International Shipping Agency Co., Ltd. Berthage fee Negotiation 27,983.71 -
SCT Load and unload service Negotiation 17,264.15 358,679.25
SMP Load and unload service Negotiation 11,320.75 2,830.20
SMT Load and unload service Negotiation 9,056.60 1,037.74
Total 7,301,743.85 5,859,456.51
- 100 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XV) NOTES TO THE FINANCIAL STATEMENTS - continued
6. Related party transactions - continued
(2) Leases with related parties
The company as the lessor:
Unit: RMB
Lease income Lease income
recognised in the recognised in the
Name of lessee Type of leased assets current period previous period
Coastal line, packing yards and
Chiwan Base 6,095,250.00 5,982,634.64
road lighting
The company as the lessee:
Unit: RMB
Lease payment Lease payment
recognised in the recognised in the
Name of lessor Type of leased assets current period previous period
Nanshan Group Land, Office and packing yard
Shenzhen Malai Warehouse Co., Ltd. Office
Chiwan Base Office
SCT Crane
Total
(3) Guarantee with related parties
The company as a guarantor：
Unit: RMB
Inception date of Expiration date of Whether guarantee has
The principal Guaranteed amount guarantee guarantee been fulfilled
Dongguan Chiwan Terminal Company Limited 100,000,000.00 26/04/2012 07/02/2015 Yes
Shenzhen Chiwan Harbor Container Company Limited 100,000,000.00 26/04/2012 07/02/2015 Yes
Total 200,000,000.00
Note: At 7 February 2015, the loans under the above guarantees amount to zero.
- 101 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XV) NOTES TO THE FINANCIAL STATEMENTS - continued
7. Amounts due from/to related parties
Unit: RMB
Item Related parties 30 Jun. 2015 31 Dec. 2014
Accounts receivable Chiwan Base 6,095,250.00 93,393.09
Dongguan Chiwan Wharf Company Limited 911,908.81 -
China Ocean Shipping Agency (Shenzhen) Company Limited 30,871.00 1,683.00
China Overseas Harbour Affairs (Laizhou) Co., Ltd - 559,663.44
SCT - 34,300.00
Shenzhen China Merchants International Shipping Agency Co., Ltd. - 6,617.00
Total 7,038,029.81 695,656.53
Other receivables Dongguan Chiwan Terminal Company Limited 469,389,909.43 478,689,909.43
Dongguan Chiwan Wharf Company Limited 281,500,000.00 300,000,000.00
Chiwan Wharf Holdings (H.K.) Limited 2,842,822.38 2,842,827.10
Nanshan Group 1,022,760.39 1,022,760.39
Shenzhen Chiwan Tugboat Co., Ltd. 178,562.52 3,500,000.00
Chiwan Base 135,621.91 135,621.91
Shenzhen Chiwan International Freight Agency Company Limited 14,833.05 -
Chiwan Container Terminal Company Limited - 38,000,000.00
Shenzhen Chiwan Trains-Grains Terminal Company Limited - 213,519.54
Others 31,549.12 31,549.12
Total 755,116,058.80 824,436,187.49
Long-term receivables Chiwan Wharf Holdings (H.K.) Limited 11,004,284.75 11,004,284.75
Dividend payable Nanshan Group 67,938,609.71 -
Shenzhen Malai Warehouse Co., Ltd. 52,225,862.29 -
Total 131,168,756.75 -
Accounts payable Nanshan Group 2,270,337.82 2,729,340.60
Xuqin 448,242.00 703,242.00
China Merchants Container Services Ltd. 160,098.18 -
Chiwan Container Terminal Company Limited 107,600.00 215,200.00
SCT 60,000.00 135,660.96
Shenzhen Chiwan Transportation Company Limited 40,950.00 163,236.00
SMW - 1,399,460.00
Total 3,087,228.00 5,346,139.56
Other payables Shenzhen Chiwan Harbour Container Company Limited 150,338,765.40 88,200,907.40
Shenzhen Chiwan Trains-Grains Terminal Company Limited 82,915,646.43 80,645,134.77
Shenzhen Chiwan Transportation Company Limited 44,896,553.88 43,706,556.61
Dongguan Chiwan Terminal Company Limited 12,010,791.30 5,267,541.71
Chiwan Container Terminal Company Limited 7,859,013.71 30,125,977.04
Dongguan Chiwan Wharf Company Limited 5,083,948.54 6,799,553.27
Shenzhen Chiwan Tugboat Co., Ltd. 3,195,778.05 429,181.32
Shenzhen Chiwan International Freight Agency Company Limited 864,493.35 698,090.93
Chiwan Base 734,456.40 -
Chiwan Shipping (HK) Company Limited 463,332.81 596,461.77
China Merchants Container Services Ltd. 282,492.61 855,383.21
Nanshan Group 20,064.25 163,673.95
Xuqin 10,000.00 -
China Merchants Holdings (International) Information Technology
6,400.00 6,400.00
Company Ltd.
Total 308,681,736.73 257,494,861.98
Interests payable Shenzhen Chiwan Harbour Container Company Limited 609,468.48 549,835.65
Shenzhen Chiwan Transportation Company Limited 352,926.04 353,917.27
Shenzhen Chiwan Trains-Grains Terminal Company Limited 59,523.28 1,502,479.48
Total 1,021,917.80 2,406,232.40
Note: The Company collectively manages and coordinates the use of the capital within the Group.
Various subsidiaries save their money with the Company, or apply for fund when needed.
The Company collects fund usage expenses based on the actual financing costs incurred.
- 102 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR SIX MONTHS ENDED 30 JUNE 2015
(XV) NOTES TO THE FINANCIAL STATEMENTS - continued
8. Supplementary information to the cash flow statement
Unit: RMB
Supplementary information Jan.-Jun. 2015 Jan.-Jun. 2014
1. Reconciliation of net profit to cash flows from operating activities:
Net profits 30,727,505.28 (3,202,090.09)
Add: Provision for impairment losses of assets - -
Depreciation of fixed assets 7,015,924.80 4,868,979.65
Depreciation and amortization of investment property 461,901.95 479,717.16
Amortization of intangible assets 1,481,217.90 1,741,518.11
Amortization of long-term prepaid expenses 376,807.13 439,712.16
Losses on disposal of fixed assets, intangible assets and
(75,111.88) 2,374.22
other long-term assets
Financial expenses 41,219,487.75 44,014,951.18
Loss (Gains) arising from investments (29,413,790.50) (21,214,832.83)
Decrease (Increase) in deferred tax assets - 3,282,922.15
Decrease in inventories 280,323.23 33,375.24
Decrease (Increase) in operating receivables 261,291,135.82 (14,874,558.13)
Increase (Decrease) in operating payables (54,016,752.86) 264,313,268.92
Net cash flows from operating activities 259,348,648.62 279,885,337.74
2. Net changes in cash and cash equivalents:
Closing balance of cash 123,860,697.56 611,353,388.32
Less: Opening balance of cash 281,427,034.32 465,329,241.75
Net increase in cash and cash equivalents (157,566,336.76) 146,024,146.57
- 103 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION TO THE CASH FLOW STATEMENT
FOR SIX MONTHS ENDED 30 JUNE 2015
1. BREAKDOWN OF EXTRAORDINARY GAINS AND LOSSES
Unit: RMB
Item Amounts Description
Profit or loss on disposal of non-current assets 112,281.70
Tax refunds or reductions with ultra vires approval or without official approval
-
documents
Government grants recognized in profit or loss (except for grants that are closely related
to the Company's business and are in amounts and quantities fixed in accordance with 338,012.74
the national standard)
Money lending income earned from non-financial institutions in profit or loss -
The excess of attributable fair value of identifiable net assets over the consideration paid
-
for subsidiaries, associates and joint ventures
Profit or loss on exchange of non-monetary assets -
Profit or loss on entrusted investments or assets management -
Impairment losses provided for each asset due to force majeure, e.g. acts of God -
Profit or loss on debt restructuring -
Business restructuring expenses, e.g., expenditure for layoff of employees, integration
-
expenses, etc.
Profit or loss relating to the unfair portion in transactions with unfair transaction price -
Net profit or loss of subsidiaries recognized as a result of business combination of
enterprises under common control from the beginning of the period up to the business -
combination date
Profit or loss arising from contingencies other than those related to normal operating
-
business
Profit or loss on changes in the fair value of financial assets and financial liabilities held
for trading and investment income on disposal of held-for-trading financial assets, held-
-
for-trading financial liabilities and available-for-sale financial assets, other than the
effective hedging activities relating to normal operating business
Reversal of provision for accounts receivable that are tested for impairment losses
-
individually
Profit or loss on entrusted loans -
Profit or loss on changes in the fair value of investment properties that are subsequently
-
measured using the fair value model
Effects on profit or loss of one-off adjustment to profit or loss for the period according to
-
the requirements by tax laws and accounting laws and regulations
Custodian fees earned from entrusted operation -
Other non-operating income or expenses other than above 466,751.63
Other profit or loss that meets the definition of non-recurring profit or loss -
Tax effects (763,056.12)
Effects of minority interest (after tax) (1,939,699.32)
Total (1,785,709.37)
2. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
The return on net assets and EPS have been prepared by Shenzhen Chiwan Wharf Co., Ltd in accordance with
Information Disclosure and Presentation Rules for Companies Making Public Offering No. 9 - Calculation
and Disclosure of Return on Net Assets and Earnings per Share (Revised 2010) issued by China Securities
Regulatory Commission.
Unit: RMB
Weighted average EPS
Profits incurred in the current period return on net assets (%) Basic EPS Diluted EPS
Net profit for the current period attributable to ordinary shareholders 5.757 0.375 0.375
Net profit attributable to ordinary shareholders after extraordinary
5.800 0.378 0.378
gains and losses
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