Abstract of the 2013 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
Stock code: 000022/200022 Stock abbreviation: Chiwan Wharf A / Chiwan Wharf B Announcement No.: 2014-012
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
ABSTRACT OF THE 2013 ANNUAL REPORT
1. Important reminders
This abstract is based on the full text of the annual report. For more details, investors are suggested to read the full text disclosed at
the same time with this abstract on the website of Shenzhen Stock Exchange or any other website designated by China Securities
Regulatory Commission.
The Annual Report is written in both English and Chinese. In case of any discrepancy between the two versions, Chinese version
prevails.
According to certain regulations issued by China Securities Regulatory Commission, the Company needn't to prepare Financial
Statements under International Financial Reporting Standards, and thus all the financial data disclosed in this report were prepared
under Chinese Accounting Standards.
Company profile:
Stock abbreviation Chiwan Wharf A, Chiwan Wharf B Stock code 000022, 200022
Stock exchange listed with Shenzhen Stock Exchange
For contact Company Secretary Securities Affairs Representative
Name Ms. Bu Dan Ms. Hu Jingjing
Tel. +86 755 26694222 +86 755 26694222
Fax +86 755 26684117 +86 755 26684117
E-mail cwh@cndi.com cwh@cndi.com
2. Financial highlights and change of shareholders
（1）Financial highlights
Unit: RMB
Increase or decrease of
2013 2012 2011
this year over last year
Total operating income 1,780,774,836.30 1,783,846,134.76 -0.17% 1,708,136,899.00
Net profit attributable to shareholders of
502,894,547.79 467,103,270.43 7.66% 505,645,137.00
the parent
Net profit attributable to shareholders of
the parent after extraordinary gains and 502,469,158.84 464,592,323.43 8.15% 505,629,810.00
losses
Net cash flows from operating activities 897,178,297.23 698,472,452.71 28.45% 746,190,596.00
Basic EPS (RMB Yuan/share) 0.780 0.724 7.73% 0.784
Diluted EPS (RMB Yuan/share) 0.780 0.724 7.73% 0.784
ROE (%) 13.26% 13.15% 0.11% 15.19%
Increase or decrease of
As at 31 Dec. 2013 As at 31 Dec. 2012 this year-end than last As at 31 Dec. 2011
year-end
Total assets 7,346,529,214.70 6,781,130,451.10 8.34% 6,540,228,435.00
Tatal shareholder’s equity attributable to 3,947,846,392.77 3,678,032,085.18 7.34% 3,467,796,751.00
equity holders of the parent
1
Abstract of the 2013 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
（2） Shareholdings of the top 10 shareholders
Total number of shareholders at
Total number of 37,120 shareholders, with 29,087 35,762 shareholders, with 27,490
the end of the fifth trading day
shareholders at the end being A-share holders, and 8,033 being being A-share holders, and 8,272
before the disclosure date of the
of the reporting period B-share holders being B-share holders
annual report
Shareholdings of top ten shareholders (all being shareholders holding shares not subject to trading moratorium)
Percentage of Shares not subject Shares Type of
Nature of
Name of shareholder (full name) shareholding to trading pledged or shares (A, B,
shareholder
(%) moratorium (share) frozen (share) H or other)
CHINA NANSHAN DEVELOPMENT
32.52% 209,687,067 0 A share
(GROUP) INC.
SHENZHEN MALAI STORAGE CO., LTD. 25% 161,190,933 0 A share
KEEN FIELD ENTERPRISES LIMITED Foreign-funded 8.58% 55,314,208 Unknown B share
CMBLSA RE FTIF TEMPLETON ASIAN
Foreign-funded 7.43% 47,914,954 Unknown B share
GRW FD GTI 5496
GOVERNMENT OF SINGAPORE INV.
Foreign-funded 0.66% 4,275,390 Unknown B share
CORP.- A/C "C"
BAYVK A2-FONDS Foreign-funded 0.58% 3,732,089 Unknown B share
EMPLOYEES PROVIDENT FUND Foreign-funded 0.56% 3,586,266 Unknown B share
TEMPLETON ASIAN GROWTH FUND Foreign-funded 0.41% 2,657,852 Unknown B share
BBH A/C VANGUARD EMERGING
Foreign-funded 0.4% 2,595,918 Unknown B share
MARKETS STOCK INDEX FUND
CMBNA/STICHTING PENS FND ABP Foreign-funded 0.39% 2,504,856 Unknown B share
China Merchants Holdings (International) Co., Ltd. (“CMHI”) was a shareholder of China
Nanshan Development (Group) Inc. (“CND Group”), Shenzhen Malai Storage Co., Ltd.
Explanation on associated relationship or/and
(Malai Storage) was a wholly-funded subsidiary of CMHI, and Keen Field Enterprises
persons acting in concert among the
Limited (KFEL ) was also a wholly-funded subsidiary of CMHI. Other than that, the
above-mentioned shareholders:
Company does not know whether the other non-restricted shareholders are related parties
or not.
（3）Relation between the Company and its actual controller in the form of diagram
State-Owned Assets Supervision and
Administration Commission of the State Council
100%
China Merchants Group
55.10%
China Merchants Holdings (International)
Company Limited
entrusted to
manage 100% 100% 37.02%
32.52% of the
Company's Shenzhen Malai Keen Field Enterprises China Nanshan Development
shares held by Storage Co., Ltd. Limited (Group) Incorporation
CND
25% 8.58% 32.52%
Shenzhen Chiwan Wharf Holdings Limited
2
Abstract of the 2013 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
Note 1: On 17 Sept. 2012, CMHI and CND Group signed the “Agreement of China Merchants Holdings
(International) Co., Ltd. and China Nanshan Development (Group) Inc. Concerning Custody of Shares of
Shenzhen Chiwan Wharf Holdings Limited”. According to the Agreement, CND Group would entrust CMHI as a
custodian with its 370,878,000 A-shares in the Company (representing a shareholding percentage of 57.52%). The
custody announcement (No. 2012-035) was released on 20 Sept. 2012 on Securities Times, Ta Kung Pao (HK)
and www.cninfo.com.cn. Meanwhile, CMHI indirectly holds 55,314,200 B-shares of the Company (representing a
shareholding percentage of 8.58%) via its wholly-funded subsidiary KFEL. As such, CMHI controls 66.10%
equity interests of the Company.
On 1 Nov. 2012, China Securities Regulatory Commission issued the ZJXK [2012] No. 1428 Document—“Reply
on Approving China Merchants Holdings (International) Company Limited to Disclose the Acquisition Report on
Shenzhen Chiwan Wharf Holdings Limited and Exempting It from the Tender Offer Duty”, exempting its tender
offer duty due to being the custodian of 370,878,000 shares of the Company, which made it the controller of the
Company’s 426,192,200 shares in all, accounting for 66.10% of the Company’s total shares.
The actual controller of the Company remained China Merchants Group after the entrustment.
Note 2: On 27 Dec. 2012, CND Group and Malai Storage signed the “Agreement between China Nanshan
Development (Group) Inc. and Shenzhen Malai Storage Co., Ltd. Concerning Transferring Shares of Shenzhen
Chiwan Wharf Holdings Limited”. According to the Agreement, CND Group transferred a number of 161,190,933
RMB ordinary shares of the Company (representing a shareholding percentage of 25%) to Malai Storage. The said
transaction was approved by SASAC of the State Council and the transfer registration formalities were finished,
with the relevant announcements (No. 2013-019 and No. 2013-030) disclosed Securities Times, Ta Kung Pao (HK)
and www.cninfo.com.cn dated 12 Mar. 2013 and 27 Apr. 2013 respectively. After the equity transfer, CMHI
indirectly held 161,190,933 A-shares of the Company (a stake of 25%) via its wholly-funded subsidiary Malai
Storage, and held 55,314,208 B-shares of the Company (a stake of 8.58%) via its wholly-funded subsidiary KFEL,
representing a combined stake of 33.58% in the Company. Meanwhile, CMHI was entrusted to manage the
209,687,067 A-shares of the Company (a stake of 32.52%) held by CND Group, which meant that CMHI
controlled a stake of 66.10% in the Company. The actual controller of the Company remained China Merchants
Group.
3. Discussion and analysis by the management
(1) Review of operation in the reporting period
The Company is principally engaged in the handling, warehousing and transportation of containers and bulk
cargoes, as well as the provision of related services.
The global economy saw a gradual and non equilibrium recovery in 2013. Stimulated by quite a few rounds of
quantitative easing and the re-industrialization progress, the U.S. economy kept recovering. Euro-zone economies
bottomed out and showed a slight growth. Japan saw a strong rebound upon a series of economic stimulus policies,
with the deflation situation improved. Emerging economies commenced re-structuring and slowed down in the
overall growth. And China’s economy was stable and recorded a GDP growth of 7.7% for 2013, with foreign trade
showing a growth of 7.6% from last year. Meanwhile, International Monetary Fund (IMF) estimated a growth of
3.0% and 2.7% in 2013 for the global economy and trade respectively.
Overcapacity still existed in the container shipping market and liner companies generally suffered from gloomy
earnings. Due to a weak foreign demand and increasing competition among wharfs, the container business of the
Company was under a lot of pressure. However, the Company still managed to maintain relative stability of its
container throughput and market share through proactively expanding local import and export cargo resources,
near-sea shipping routes, liner branch routes and emerging business. As for the bulk cargo business, in view of a
sluggish demand in foreign trade, the Company adapted itself to the said market change and proactively sought for
more needs in inner trade, which offset the drop in the cargo volume caused by the declining foreign trade. In
addition, the operation rates for main cargos were effectively increased.
For the reporting year, the Company achieved a container throughput of 5,346 thousand TEU, representing a small
YoY increase of 0.7%, slightly lower than the 1.7% growth of the average container throughput of all Shenzhen
wharfs. The container throughput of the Company represented a 23% market share of Shenzhen wharfs, almost
the same as last year. Chiwan port achieved a throughput of 3,990 thousand TEU, a 1.1% increase over last year.
Throughout the year, the bulk cargo throughput achieved by the Company was 13,311 thousand tons, up 24.4%
over last year. To be specific, Chiwan Port optimized its business structure and achieved a throughput growth of
10.6% over last year despite limited resources. And Machong Port saw the gradual release of new resource
3
Abstract of the 2013 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
capacity, which resulted in a considerable throughput growth of 46.2% over last year.
For the year 2013, the Company achieved a total throughput of 65.894 million tons, representing an increase of
7.1% over 2012, of which Chiwan Port achieved 59.806 million tons, up 4.2% over 2012, accounting for 25.6% of
the overall throughput at Shenzhen ports, up by 40 basic points as compared with 2012.
Business highlights of the Company for the past three years are set out as follows:
Business highlight 2013 2012 2011
Total throughput (thousand tons) 65,894 61,533 63,840
Among which: Container throughput (thousand TEU) 5,346 5,311 5,793
Chiwan Port 3,990 3,946 4,122
Mawan Port 1,356 1,365 1,671
Throughput of bulk cargos (thousand tons) 13,311 10,699 9,251
Chiwan Port 7,223 6,534 6,532
Machong Port 6,088 4,165 2,719
Hours charged for tow trucks (thousand hours) 1,230 1,179 1,231
Hours charged for tugboats (hour) 30,247 31,707 32,121
In 2013, the Company attached importance to and continued improving customer service to stabilize core
customers. Meanwhile, it proactively sought for new customers and adopted more flexible business strategies to
enhance customers’ reliance on it and its routes. It also enhanced exchange and cooperation with other wharfs in
the region to maintain a good order in market competition.
The Company pushed forward R&D innovation and lean management; increased operation efficiency and
resource utilization efficiency through operation process improvement, work flow optimization and technical
innovation; and eased the pressure brought by limited resources and rising labor cost. In 2013, the Company
accelerated the transition from technical innovation achievements to actual productivity, which produced an
excellent result. It also vigorously carried forward innovation in organization, management and mechanism.
Through a series of lean management measures such as optimization of the organizational structure, IT application
in management and cost control, the Company successfully reduced costs, increased efficiency and greatly
improved the overall management capability.
(2) Outlook of the Company’s future development
1) Development trends and competition status of the industry in which the Company is engaged
In 2014, the global economy will keep the moderate recovery trend with the overall situation expected to be better
than 2013. However, there will still be challenges such as withdrawal of American QE, the weak European
economy and re-structuring of emerging markets. It will be difficult to see a fundamental improvement of the
supply and demand imbalance in the shipping market, and the freight rates may fluctuate more frequently. “Allied
container shipping” of liner companies will keep upgrading and the global map of liner routes may be re-drawn.
New opportunities and challenges are ahead for container wharfs.
Thanks to more and more in-transit containers, the container throughput of Shenzhen surpassed Hong Kong and
became No. 3 in the world in 2013. But in the long run, the declining foreign demand and the ongoing industry
relocation from the Pearl River Delta will lead to a limited growth of containerizable goods in the hinterland, and
the container throughput of Shenzhen wharfs will enter a period of steady growth at a low speed.
In terms of its container business in the long run, the Company will devote itself to maintaining stable core clients
and main shipping routes through increasing the wharf operation efficiency and carrying out a quality service
strategy. Meanwhile, along with the upgrading of the berths, there will still be some room for the throughput to
grow. As for the bulk cargo business, the overall resource capability of the Company improves significantly as the
wharf of Machong Phase II is put into use. The Company becomes a stronger competitor in the traditional cargo
market and there is room for it to expand the emerging cargo market. In the future, the bulk cargo business of the
Company will keep growing steadily.
4
Abstract of the 2013 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
2) Business plan for 2014
The Company will pay close attention to developments in the macro-economy and social changes, proactively
study the industry situation and market changes, and adjust operating strategies based on its actual situation so as
to maximize operating earnings.
In terms of the container business, the Company will proactively deal with more and more larger ships and allied
liner companies, as well as push forward the upgrading of berths. It will take the initiative to seize market
opportunities and expand local cargo sources and near-sea shipping routes. And it will also continue to optimize
the port environment and increase the customs clearance efficiency.
As for the bulk cargo business, the Company will put the wharf of Machong Port Phase II into use as scheduled,
input great efforts in business expansion, and accelerate market cultivation. It will also carry forward the
relocation of the fertilizer business to Machong Port step by step as planned. At the same time, it will try to
achieve the optimal resource allocation and a coordinative development between Chiwan Port and Machong Port.
The Company will continue to provide quality and efficient comprehensive port services for clients, and maintain
a steady growth of the overall business scale. Meanwhile, it will seek for cooperation with other wharfs in the
region to keep competition in a healthy state. It will also deepen R&D innovation and lean management; improve
resource utilization efficiency and the overall management capability; and carry on with its various tasks such as
reducing costs and increasing efficiency, saving energy and reducing emission, and building green wharfs.
3) Capital needs and expenditure plan for 2014
To implement our future development strategies and achieve business goals we have set, a capital expenditure of
RMB 334.68 million is planned for 2014, of which RMB 193.11 million will be invested in wharf warehouses,
RMB 106.32 million in equipments and ships, RMB 15.80 million in IT and RMB 19.45 million in administration
and offices. The above capital expenditures will be mainly funded by cash inflows from operating activities of the
Company and bank borrowings.
(3) No significant change occurred to the structures of main business lines and profit during the reporting
period, and operating revenue was almost the same as that of last year. Main financial indicators
are as follows:
Item 2013 2012 +/-
Total operating income 1,780,774,836.30 1,783,846,134.76 -0.17%
Operating profit 759,282,870.84 737,084,907.08 3.01%
Net profits attributable to shareholders of the parent 502,894,547.79 467,103,270.43 7.66%
Operating profit went up by 3.01% mainly because ① business tax and surtaxes recorded a considerable drop of
89% when VAT replaced business tax; ② RMB appreciation generated exchange earnings; and ③ jointly-run and
associated companies recorded YoY growth in profit due to the macro market environment, bringing up the
relevant investment earnings by 22% on the year-on-year basis. Net profit attributable to shareholders of the
Company (without subsidiaries) recorded a growth of 7.66% mainly because ① the extension of Berth 13# was
put into use in Aug. 2012, which enabled the Company to enjoy a preferential treatment of relevant income tax
reduction or exemption; and ② interest expenses decreased, RMB appreciated and financial expenses decreased.
4. Matters in relation to financial reporting
(1) Explain any change of the accounting policies, accounting estimates or accounting methods as compared
with the financial reporting of last year
According to “Motion to change the provision method and proportion of accounts receivables” considered and
approved on the 4th Special Session of the 7th Board of Directors for 2013 on 8 Mar. 2013. The announcement on
the said change of accounting estimates (announcement No.: 2013-018) was released on Securities Times, Ta
Kung Pao (HK) and www.cninfo.com.cn dated 12 Mar. 2013.
The changes in accounting estimates reduced the consolidated net profit for the year 2013 by RMB 295,850.01, of
which RMB 216,791.16 attributable to shareholders of the parent company's net profit.
5
Abstract of the 2013 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
(2) Explain any retrospective restatement due to correction of any significant accounting error in the
reporting period
N/A
(3) Explain change of the consolidation scope as compared with the financial reporting of last year
Unchanged
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard
audit report” issued by the CPAs firm for the reporting period
N/A
For and on behalf of the Board
Zheng Shaoping
Chairman
Shenzhen Chiwan Wharf Holdings Limited
Dated 29 March 2014
6
