Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-Annual Report 2017
Stock code: 000022/200022 Stock name: Chiwan Wharf A/Chiwan Wharf B Announcement No. 2017-033
Shenzhen Chiwan Wharf Holdings Limited
Abstract of Semi-Annual Report 2017
I Important information
This Abstract is based on the full text of the Semi-Annual Report. In order for a full understanding of the
operating results, financial condition and future development planning of the Company, investors are kindly
reminded to read the full text carefully on the media designated by the China Securities Regulatory Commission.
Non-standard auditor’s opinion
□ Applicable √ Not applicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share
capital for the reporting period, which has been reviewed and approved at the board meeting
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into share capital.
Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been
reviewed and approved at the board meeting
□ Applicable √ Not applicable
This Abstract has been prepared in both Chinese and English. Should there be any discrepancies or
misunderstandings between the two versions, the Chinese version shall prevail.
II Company profile
1. Stock profile
Stock name Chiwan Wharf A, Chiwan Wharf B Stock code 000022, 200022
Stock exchange Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Mr. Wang Yongli Ms. Hu Jingjing and Ms. Chen Dan
Office address 8/F, Chiwan Petroleum Building, Shenzhen, PRC
Tel. +86 755 26694222 +86 755 26694222
E-mail address cwh@szcwh.com cwh@szcwh.com
2. Major accounting data and financial indicators
Does the Company need to adjust retrospectively or restate accounting data?
□ Yes √ No
Reporting period Same period of last year YoY +/-（％）
Operating revenues (RMB) 929,608,498.91 904,809,652.24 2.74%
Net profit attributable to
276,407,832.70 266,535,506.97 3.70%
shareholders of the Company(RMB)
1
Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-Annual Report 2017
Net profit attributable to
shareholders of the Company before
275,545,048.09 264,716,384.31 4.09%
extraordinary gains and losses
(RMB)
Net cash flows from operating
419,531,779.91 368,657,243.80 13.80%
activities (RMB)
Basic EPS (RMB/share) 0.429 0.413 3.87%
Diluted EPS (RMB/share) 0.429 0.413 3.87%
Weighted average ROE (%) 5.76% 5.88% -0.12%
As at the end of the
As at the end of last year +/-（％）
reporting period
Total assets (RMB) 6,784,421,548.53 6,620,476,709.79 2.48%
Net assets attributable to
4,671,374,937.86 4,709,815,552.89 -0.82%
shareholders of the Company (RMB)
3. Shareholders and their holdings at period-end
Unit: share
Total number of
preference shareholders
Total number of common 45,296 (34,647 A-shareholders and 10,649
with resumed voting 0
shareholders at period-end B-shareholders)
rights at period-end (if
any)
Top 10 shareholders
Shareholdi
Nature of Total shares
Name of shareholder ng Restricted shares held Pledged or frozen shares
shareholder held
percentage
CHINA NANSHAN
State-owned
DEVELOPMENT 32.52% 209,687,067 0 0
corporation
(GROUP) INC.
Domestic
SHENZHEN MALAI non-state-o
25.00% 161,190,933 0 0
STORAGE CO., LTD. wned
corporation
KEEN FIELD
Foreign
ENTERPRISES 8.58% 55,314,208 0 0
corporation
LIMITED
CMBLSA RE FTIF
Foreign
TEMPLETON ASIAN 7.43% 47,914,954 0 Unknown
corporation
GRW FD GTI 5496
Foreign
NORGES BANK 0.43% 2,802,863 0 Unknown
corporation
BBH A/C VANGUARD
EMERGING Foreign
0.41% 2,617,518 0 Unknown
MARKETS STOCK corporation
INDEX FUND
CHINA MERCHANTS
State-owned
SECURITIES (HK) 0.38% 2,479,573 0 Unknown
corporation
CO., LTD.
2
Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-Annual Report 2017
SINO-ITALY ASSETS
MANAGEMENT-ICBC
-STRATEGIC
Other 0.27% 1,772,663 0 Unknown
SELECTION ASSETS
MANAGEMENT
PRODUCTS NO. 55
CANADA POST
CORPORATION Foreign
0.25% 1,631,396 0 Unknown
REGISTERED corporation
PENSION PLAN
TEMPLETON ASIAN Foreign
0.25% 1,628,170 0 Unknown
GROWTH FUND corporation
China Merchants Port Holdings Company Limited (CMPort) is a
shareholder of China Nanshan Development (Group) Inc., and Shenzhen
Related or acting-in-concert parties Malai Storage Co., Ltd. and Keen Field Enterprises Limited are both
among shareholders above wholly-funded subsidiaries of CMPort. Other than that, the Company does
not know whether the other non-restricted shareholders are related parties
or not.
Shareholders conducting securities
N/A
margin trading (if any)
4. Change of controlling shareholder or actual controller in reporting period
Change of the controlling shareholder in the reporting period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the reporting period.
Change of the actual controller in the reporting period:
□ Applicable √ Not applicable
The actual controller remained the same in the reporting period.
5. Number of preference shareholders and shareholdings of top 10 of them
□ Applicable √ Not applicable
No preference shareholders in the reporting period.
6. Corporate bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the
approval date of this Report or were due but could not be redeemed in full?
No.
3
Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-Annual Report 2017
III Performance discussion and analysis
1. Performance review for reporting period
Is the Company subject to any disclosure requirements for special industries?
No.
In the first half of 2017, the global economy continued to pick up, prices of bulk commodities were generally on
the rise and recovery of international trade accelerated, but the global economy lacked momentum in recovery and
there was still no sign of strong structural growth. China furthered its supply-side structural reform and its
innovation-driven development strategy, and was able to bring its economic growth up to 6.9%. Its foreign trade
was improving, with the total volume up 19.6% compared to the same period of last year. As a result, the
country’s port industry saw faster growth in handling. The country’s coastal ports above the designated size
registered a cargo throughput of 4.31 billion metric tons, representing a year-on-year growth of 7.3% (5.6
percentage points higher than the same period of last year), and a container throughput of 0.1 billion TEU, up
7.8% from a year earlier (5.4 percentage points higher than the same period of last year).
In the reporting period, having the big picture in mind, the Company seized market opportunities and forged
ahead, and this was rewarded by increases in its main operating indicators. To be specific, the Company achieved
a cargo throughput of 34.99 million metric tons, a year-on-year increase of 7.4%, which generated operating
revenues of RMB0.93 billion, up 2.7% from the same period of last year, and net profits attributable to the
Company (as the parent company) of RMB0.28 billion, representing a 3.7% growth from a year earlier.
1. Container handling business
In the reporting period, growth in international trade stimulated transport demand; growth in container handling
capacity slowed down but overcapacity still existed; and there were increasing large ships, with 8,000 TEU and
greater ships accounting for 47% of container ships. Freighters witnessed increasing integration and federation.
The three major shipping federations have officially begun operation in this April, with their combined container
shipping capacity taking up as much as 74% of the global capacity. As a result, the shipping industry would be
more centralized and the freight rates would generally remain stable.
In the Pearl River Delta, competition in container handling has intensified and shipping federations have
re-adjusted their shipping routes. All ports in Shenzhen combined achieved a container throughput of 11.865
million TEU, up 3.8% from the same period of last year, lower than the national average. Under such
circumstances, the Company adopted effective measures to cope with adjustments in freighters’ shipping routes in
order to ensure stability in its business. It strengthened business solicitation and tried to establish relationship with
new shipping routes to offset the decline in its cargo transit business caused by the freighters’ federations’
adjustments to their shipping routes. As a result, at the end of the reporting period, the shipping routes in
cooperation with the Company increased by 21 on a year-on-year basis, all Asian routes. Meanwhile, the
Company continued to improve its logistics service and wharf services to attract cargo sources from the hinterland,
which helped increase the handled local container volume by 6.4% from a year earlier. In the fierce local
competition, the Company realized a container throughput of 2.488 million TEU, increasing 1.8% compared to
the same period of last year, which accounted for 21% of the Shenzhen market, flat with the same period of last
year.
2. Bulk cargo handling business
Along with the recovery of China’s economy in the reporting period, the domestic imports of both grain and
fertilizer showed signs of increase, creating market opportunities for stable growth in the Company’s bulk cargo
handling business. In the period, the Company achieved a bulk cargo throughput of 11.233 million metric tons, a
31.1% year-on-year growth.
The Company adopted a business strategy of working on both domestic and foreign trade. Due to the Company’s
efforts in expanding its domestic corn handling business and its international grain and feedstuff handling
4
Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-Annual Report 2017
business, its grain and feedstuff throughput was up 28% compared to the same period of last year, of which the
international throughput went up 22% while the domestic throughput increased by 1.7 times, securing its leading
position in the field of grain and feedstuff handling, as well as its position as a preferred discharge port for
international grain and feedstuff, in the Pearl River Delta. In the meantime, in order to ensure sustained growth in
the grain and feedstuff handling business, the Company vigorously tried to attract new clients from nearby
businesses, solidify quality cargo sources, improve its comprehensive port services, further cooperation with
clients and satisfy various needs of clients.
By paying close attention to changes in the fertilizer market and staying in close contact with fertilizer clients, the
Company’s fertilizer throughput increased significantly by 62.1% compared to the same period of last year, of
which the imported compound fertilizer handled by the Company accounting for over 50% of the national total,
keeping the Company in a leading position in this respect. In the meanwhile, the Company’s fertilizer handling
business registered stable growth due to its efforts in, among other things, expanding the exported urea and
imported pure sodium carbonate handling business, widening and extending channels and providing various
value-added port services.
3. Support services and investment management
The Company’s business of support tow truck, tugboat, customs clearance and barge services operated smoothly,
with a year-on-year profit increase. Meanwhile, the Company’s main joint ventures, including China Overseas
Harbour Affairs (Laizhou) Co., Ltd., China Merchants Bonded Logistics Co., Ltd. and China Merchants Holdings
(International) Information Technology Co., Ltd., contributed flat returns to the Company compared to the same
period of last year.
The Company’s business results are set out as follows:
Reporting period Same period of last year
Main business indicator YoY +/-%
(January-June 2017) ( January-June 2016)
Total throughput (thousand tons) 34,990 32,585 7.4%
Among which:
2,488 2,444 1.8%
Container throughput (thousand TEU)
Bulk cargo throughput (thousand tons) 11,233 8,567 31.1%
Hours charged for tow trucks (thousand 588 547 7.5%
hours)
Hours charged for tugboats (hour) 17,152 16,790 2.2%
During the reporting period, the Company carried out the tasks set for the year, with the focus on internal
management improvement, better service quality and efficiency increase. It completed management restructuring
of the Headquarters for more professional division of functions; strengthened budgetary management for more
effective operational control; optimized operating procedures using the internet technology to increase the
operating efficiency; encouraged innovations in process and procedure and finished multiple technical alterations;
and optimized the capital and debt structure to reduce finance costs.
In the second half of 2017, the world economy is expected to continue to recover, and China’s economy and
foreign trade are likely to see more stability and improvement. However, risks still exist, including inflation
pressure, changes in the monetary policies of main economies and trade protectionism. These uncertainties may
cause more volatility in the port industry and pose certain challenges to the Company. In container handling, the
regional competition and freighters’ adjustments to their shipping routes exert pressure on the Company’s
business growth. To deal with that, the Company will pay close attention to certain clients’ merger and acquisition
progress, be more flexible in business negotiation, try to attract new shipping routes, and be as cooperative as it
can in the Tonggu Channel widening and dredging program conducted to improve the channel conditions, so as to
maintain stability in the Company’s container handling business. In bulk cargo handling, the Company will keep
an eye on market and policy changes, maintain an aggressive business strategy, secure and increase the
Company’s market position, and accelerate the berth and warehouse alteration at the Chiwan Wharf, as well as the
5
Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-Annual Report 2017
building of support warehousing facilities at the Machong Wharf, so as to improve the Company’s overall
resource capability to seize more and better opportunities for business growth. As for internal management, the
Company will continue to work on lean management, innovation, resource integration, organizational
construction and risk control, and carry out various tasks according to its annual plan, trying to achieve its annual
targets.
No major changes occurred to the profit structure or sources of the Company during the reporting period.
YoY movements in financial highlights:
Unit: RMB
Main reasons for
Reporting period Same period of last year YoY +/-%
movements
Operating revenues 929,608,498.91 904,809,652.24 2.74%
Operating costs 535,972,835.46 492,158,524.59 8.90%
Administrative expenses 72,324,731.18 81,947,868.71 -11.74%
Interest cost decreased
as the average balance
Finance costs 10,152,388.82 14,253,614.35 -28.77%
of interest-bearing debts
decreased
Corporate income tax expenses 58,896,433.80 49,661,006.76 18.60%
R&D expenses 17,130,145.36 15,986,053.06 7.16%
Net cash flows from operating
419,531,779.91 368,657,243.80 13.80%
activities
Net cash flows from investing Higher payments for
7,493,810.29 16,665,254.18 -55.03%
activities engineering
Net cash flows from financing
-254,949,011.51 -664,817,669.11 61.65% Lower debt repayments
activities
Net increase in cash and cash Loans and repayments
167,505,798.54 -277,266,096.67 -39.59%
equivalents decreased
2. Matters related to financial report
(1) Changes in accounting policies, accounting estimations and measurement methods compared to last
accounting period
□ Applicable √ Not applicable
No such cases.
(2) Retroactive restatements due to correction of significant accounting errors in reporting period
□ Applicable √ Not applicable
No such cases.
6
Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-Annual Report 2017
(3) Changes in scope of consolidated financial statements compared to last accounting period
□ Applicable √ Not applicable
No such cases.
For and on behalf of the Board
Liu Bin
Managing Director
Shenzhen Chiwan Wharf Holdings Limited
Dated 25 August 2017
7
