The Abstract of the 2015 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
Stock Code: 000022/200022 Stock Abbr.: Chiwan Wharf A / Chiwan Wharf B Public Announcement No.: 2016-012
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
THE ABSTRACT OF THE 2015 ANNUAL REPORT
I. Important information
This Abstract is based on the full text of the 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.
This Abstract is prepared in both Chinese and English. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
Non-standard auditor’s opinion
□ Applicable √ Inapplicable
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 □ Inapplicable
Share capital increase from the capital reserve
□ Yes √ No
Preliminary plan for profit distribution to the common shareholders for the reporting period which has been
reviewed and approved at the board meeting: Based on the total shares of 644,763,730, a cash dividend of
RMB4.10 (tax included) will be distributed to all the shareholders for every 10 shares that they hold. No bonus
shares will be granted and no capital reserve will be turned 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 √ Inapplicable
Company profile
Stock abbr. Chiwan Wharf A, Chiwan Wharf B Stock code 000022, 200022
Stock exchange Shenzhen Stock Exchange
Contact information Company Secretary Securities Affairs Representative
Name Mr.Wang Yongli Ms.Hu Jingjing &Ms. Chen Dan
8/F, Chiwan Petroleum Building, Zhaoshang Street, Nanshan District,
Office address
Shenzhen, PRC
Fax +86 755 26684117 +86 755 26684117
Tel. +86 755 26694222 +86 755 26694222
E-mail address cwh@szcwh.com cwh@szcwh.com
II. Brief introduction to the main business or products 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 Company has 6 container berths and 7 bulk cargo berths
in Chiwan Port (Shenzhen), 3 container berths in Mawan Port (Shenzhen) and 5 bulk cargo berths in Machong
Port (Dongguan). The Company also have an investment in Laizhou Wharf in Shandong Province.
In the reporting period, shrinking growth in port transportation demand caused by low international trade demand
as well as fiercer competition due to overcapacity urged faster transformation by upgrading and integration of
regional resources. New technology such as the Internet and the Internet of Things boosted the shift of port
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The Abstract of the 2015 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
enterprises to a comprehensive service provider. As a regional hub for container and bulk cargo carriers, the
Company enjoyed sound business results as well as a firm and improving market position.
III. Accounting and financial highlights
1. Accounting and financial highlights for the past three years
Does the Company adjust retrospectively or restate the accounting data of previous years due to changes in the
accounting policy or corrections of accounting errors?
□ Yes √ No
Unit: RMB Yuan
Increase/decrease of
Item 2015 2014 current year over last 2013
year
Operating revenues 1,872,608,596.16 1,804,766,176.31 3.76% 1,780,774,836.30
Net profits attributable to
527,751,492.42 417,594,271.33 26.38% 502,894,547.79
shareholders of the parent
Net profits attributable to
shareholders of the parent after 528,043,530.88 417,628,589.12 26.44% 502,469,158.84
extraordinary gains and losses
Net cash flows from operating
977,850,737.45 818,315,147.74 19.50% 897,178,297.23
activities
Basic EPS (RMB Yuan/share) 0.819 0.648 26.39% 0.780
Diluted EPS (RMB Yuan/share) 0.819 0.648 26.39% 0.780
Weighted average ROE (%) 12.34% 10.36% 1.98% 13.26%
Increase/decrease of
Item As at 31 Dec. 2015 As at 31 Dec. 2014 current year-end than As at 31 Dec. 2013
last year-end
Total assets 6,913,772,876.99 6,935,824,199.68 -0.32% 7,346,529,214.70
Net assets attributable to
4,439,600,537.05 4,115,298,831.59 7.88% 3,947,846,392.77
shareholders of the Company
2. Accounting highlights by quarter
Unit: RMB Yuan
Item Q1 Q2 Q3 Q4
Operating revenues 407,974,820.55 472,813,188.23 509,817,001.86 482,003,585.52
Net profits attributable to
102,580,695.58 139,396,676.76 175,532,433.81 110,241,686.27
shareholders of the parent
Net profits attributable to
shareholders of the parent after 104,753,391.40 139,009,690.31 175,272,326.54 109,008,122.63
extraordinary gains and losses
Net cash flows from operating
161,160,849.20 204,361,665.51 279,497,564.39 332,830,658.35
activities
Any material differences between the financial indicators above or their summations and those which have been
disclosed in quarterly or semi-annual reports?
□ Yes √ No
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The Abstract of the 2015 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
IV. Share capital and shareholders
1. Numbers of the common shareholders and the preference shareholders with resumed voting rights as
well as the shareholdings of the top 10 shareholders
Unit: share
Total number of
Total number of 36,676, Total number of preference
37,528,
Total number common including preference shareholders with
including 28,103
of common shareholders at 27,174 shareholders with resumed voting
A-shareholders 0 0
shareholders at pervious month-end A-shareholders resumed voting rights at pervious
and 9,425
period-end of this Report’s and 9,502 rights at period-end month-end of this
B-shareholders
disclosure B-shareholders (if any) Report’s
disclosure (if any)
Shareholdings of shareholders with a stake over 5% or top 10 shareholders
Number
+/- in of Number of
Name of Nature of Shareholding Total shares held at
reporting restricted non-restricted Pledged or frozen shares
shareholder shareholder percentage period-end
period shares shares held
held
CHINA NANSHAN
DEVELOPMENT 32.52% 209,687,067 0 0 209,687,067 0
(GROUP) INC.
SHENZHEN
MALAI STORAGE 25.00% 161,190,933 0 0 161,190,933 0
CO., LTD.
KEEN FIELD
ENTERPRISES Foreign-funded 8.58% 55,314,208 0 0 55,314,208 Unknown
LIMITED
CMBLSA RE FTIF
TEMPLETON
Foreign-funded 7.43% 47,914,954 0 0 47,914,954 Unknown
ASIAN GRW FD
GTI 5496
CMBNA/STICHTI
NG PENS FND Foreign-funded 0.54% 3,463,503 0 0 3,463,503 Unknown
ABP
GIC PRIVATE
Foreign-funded 0.52% 3,360,777 0 0 3,360,777 Unknown
LIMITED
TEMPLETON
ASIAN GROWTH Foreign-funded 0.41% 2,657,852 0 0 2,657,852 Unknown
FUND
BBH A/C
VANGUARD
EMERGING Foreign-funded 0.41% 2,617,518 21,600 0 2,617,518 Unknown
MARKETS STOCK
INDEX FUND
KUMPULAN
WANG
PERSARAAN Foreign-funded 0.37% 2,368,067 0 0 2,368,067 Unknown
(DIPERBADANKA
N)
TEMPLETON
EMERGING MKTS Foreign-funded 0.33% 2,126,967 0 0 2,126,967 Unknown
FUND INC
Shareholdings of top 10 non-restricted share holders
Number of non-restricted shares held at Type of shares
Name of shareholder
period-end Type Number
CHINA NANSHAN DEVELOPMENT
209,687,067 A share 209,687,067
(GROUP) INC.
SHENZHEN MALAI STORAGE CO.,
161,190,933 A share 161,190,933
LTD.
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The Abstract of the 2015 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
KEEN FIELD ENTERPRISES
55,314,208 B share 55,314,208
LIMITED
CMBLSA RE FTIF TEMPLETON B share
47,914,954 47,914,954
ASIAN GRW FD GTI 5496
CMBNA/STICHTING PENS FND B share
3,463,503 3,463,503
ABP
B share
GIC PRIVATE LIMITED 3,360,777 3,360,777
TEMPLETON ASIAN GROWTH B share
2,657,852 2,657,852
FUND
BBH A/C VANGUARD EMERGING B share
2,617,518 2,617,518
MARKETS STOCK INDEX FUND
KUMPULAN WANG PERSARAAN B share
2,368,067 2,368,067
(DIPERBADANKAN)
TEMPLETON EMERGING MKTS B share
2,126,967 2,126,967
FUND INC
China Merchants Holdings (International) Company Limited (“CMHI”) is a shareholder of
China Nanshan Development (Group) Inc. (“CND Group”), Shenzhen Malai Storage Co., Ltd.
Related or acting-in-concert parties (“Malai Storage”) is a wholly-funded subsidiary of China Merchants Holdings (International)
among top 10 shareholders Company Limited, and Keen Field Enterprises Limited is 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.
Top 10 common shareholders
conducting securities margin trading (if Inapplicable
any)
2. Number of the preference shareholders and the shareholdings of the top 10 of them
□ Applicable √ Inapplicable
No preference shareholders in the reporting period
3. Relationship 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
54.95%
China Merchants Holdings
Entrusted to (International) Company Limited
manage
32.52%
shares held 100% 100% 37.02%
by CND
Group
Malai Storage Keen Field Enterprises CND Group
25% 8.58% 32.52%
14.58% Public Share A
Shenzhen Chiwan Wharf Holdings Limited
19.32% Public Share B
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The Abstract of the 2015 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
V. Discussion and analysis by the management
1. Business review for the reporting period
In 2015, the global economy developed slowly amid polarization and adjustments, leading to falling commodity
prices and weak international trade demand. With its economic structure in an upgrade period, China’s economic
growth in the year slowed down to 6.9%. Its gross value of imports and exports went down by 7.0% due to
multiple factors such as low foreign demand, fading conventional competitive edges and trade protectionism.
Substantial development of the Belt and Road Initiative, start of the supply-front structural reform as well as
implementation and spread of the free trade zone policies caused a shrinking growth in port transportation demand
and urged a faster pace in resource integration in the port industry. Meanwhile, new technology such as the
Internet and the Internet of Things boosted the shift of port enterprises to a comprehensive service provider.
In 2015, strictly following the principle of “Recognize the Situation, Solidify What We Have and Innovate for
Breakthroughs”, the Company overcame difficulties and forged ahead. As a result, the business plan for the year
has been fully accomplished.
(1) Continuous growth in business results
Affected by the sluggish macro-economy, growth in the throughput of China’s ports kept falling. In 2015,
throughput of China’s coastal wharfs above the designated size stood at 7.84 billion tons, only 1.0% higher than
that of last year. In the reporting period, the Company achieved a throughput of 66.618 million tons, a
year-on-year increase of 5.7%, higher than the national average, which generated operating revenues of RMB1.87
billion, up 3.8% from last year; total profits of RMB730 million, up 8.3% on a year-on-year basis; and net profits
attributable to the Company (excluding subsidiaries) of RMB530 million, representing a 26.4% growth from the
year earlier.
The container handling business remained relatively stable. In 2015, shipping prices dropped further since the
supply and demand imbalance in shipping was not improving with low international container shipping demand.
To deal with the depression, shipping companies were trying to cut down their operating costs through shipping
route adjustment and alliance cooperation. In 2015, container throughput of main ports in South China declined
1.4% year on year. Ports in Shenzhen achieved a container throughput of 24.21 million TEU, up 0.7% from the
year earlier, staying No. 3 in the global ranking. As the Company mainly handled international containers and its
clients were relatively centralized, the shipping route adjustments by its core clients caused more fluctuations in
its business. In the reporting period, the Company handled 4.76 million TEU of containers, down 4.0% from last
year, accounting for approximately 20% of the Shenzhen market, about the same with last year. Meanwhile, we
made full use of our information platform—“Smart Port”—to vigorously promote the barge sideline. As a result,
the 15.4% throughput growth in the barge business from containers from the Pearl River Delta effectively offset
the decline in the international transit business. The company also attracted 16 new shipping routes. By the end of
2015, we had a total of 54 international liner routes to work with. In addition, we have applied the same customs
clearance procedure for Chiwan Wharf and Mawan Wharf and effectively improved the wharf environment.
The bulk cargo handling business continued to grow. In 2015, China imported a lot more fertilizer and grain from
quite many countries and regions. We seized the opportunity, closely followed hot trends in the market, adopted
flexible business strategies in dealing with the fierce market competition and immediately responded to clients’
needs. As a result, we achieved a remarkable result in market expansion, stabilizing the rates and further
optimizing our business mix. In the reporting period, the Company achieved a bulk cargo throughput of 19.283
million tons, up 27.4% year on year, including 7.49 million tons from Chiwan Wharf (a year-on-year increase of
36.1%) as well as 11.793 million tons from Machong Wharf (a year-on-year increase of 22.4%). The Company
saw a steadily expanding market share in its bulk cargo handling business, with a leading position in the Pearl
River Delta in regard to handling exported grain and feedstuff as well as a leading position in the country
regarding handling imported compound fertilizer.
Business highlights of the Company for the past three years are set out as follows:
Business highlight 2015 2014 2013
Total throughput (thousand tons) 66,618 63,002 65,894
Among which: Container throughput 4,760 4,958 5,346
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The Abstract of the 2015 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
(thousand TEU)
Chiwan Wharf 3,414 3,712 3,990
Mawan Wharf (joint venture) 1,346 1,246 1,356
Bulk cargo throughput (thousand tons) 19,283 15,139 13,311
Chiwan Wharf 7,490 5,502 7,223
Machong Wharf 11,793 9,637 6,088
Hours charged for tow trucks (thousand 1,129 1,170 1,230
hours)
Hours charged for tugboats (hour) 34,098 28,642 30,247
(2) Continuous optimization of resource allocation
Pursuant to our development strategy, we pushed forward container berth upgrade, launched a berth upgrade and
storage yard alteration project for Chiwan Wharf, and accelerated the construction in Machong Wharf. These
effective improvements in our resource capacity have laid a solid foundation for our future business development.
In the reporting period, container berths 12# and 13# in Chiwan Wharf and container berths 6# and 7# in Mawan
Wharf finished upgrading and were put into use; bulk cargo storage yard 14# in Chiwan Wharf finished expansion
and went into operation, the Chiwan Wharf bulk cargo berth 7# alteration project entered the construction phase
and the silo technique continued to improve; in Machong Wharf, berths 2# and 3# were upgraded upon approval
to conditional 70,000-ton-level berths, the 100,000-ton mechanized horizontal warehouse was completed and put
into use in November, construction started for the expansion of the 225,000-ton bulk grain warehouse, and
preparations for the bulk grain silo phase III project proceeded smoothly as scheduled.
(3) Effective increase of our management capability
In the reporting period, we continued to push forward lean management and enhanced the application of the
statistic analysis tool in management via theoretical training and practice. Our management capability was further
increased through our efforts in adjusting our management architecture, optimizing our debt structure, bringing in
a competitive mechanism for contractors, spreading our technical innovation achievements, etc. Innovative
measures such as encouraging innovation of our business models, technical innovation and optimizing operation
procedures helped increase our input-output efficiency and achieve improvement in efficiency, quality and
earnings. Despite rising land rents and labor cost, controllable costs were effectively controlled and operating
costs grew slower than the business volume did.
2. Outlook of the Company’s future development
(1) Outlook and trends of the industry
2016 is expected to continue to see a faltering recovery in the global economy as well as a slow development pace
in global shipping. In the opening year for the 13th Five Year Plan for National Economic and Social Development,
China continues to carry forward its market-oriented reform on its economy and shifts its economic growth to a
medium and high speed. China’s port industry is still under the pressure of overcapacity. In the meantime, costs
are rising due to the government’s adjustment to the policy governing port rates, rigid growth in labor cost,
increasing requirements for port functions, etc. Competition among ports will become fiercer. All these are
accelerating resource allocation in ports.
In terms of container handling, container throughput in the Pearl River Delta is expected to remain stable, the
trend of larger ships and shipping alliances has become normal, and the risk of business fluctuations may become
higher as clients have become more centralized. As a local hub port for container carriers, our market position and
throughput will remain relatively stable and may grow as we enhance market expansion.
As for bulk cargo handling, regional demand is growing steadily and resource capacity of Chiwan Port and
Machong Port has increased steadily. Meanwhile, due to operation for both foreign and domestic trade with a
large and balanced variety of cargo, we enjoy strong competitiveness in the market. Therefore, throughput of our
bulk cargo handling business will expectedly keep growing.
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The Abstract of the 2015 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
(2) Development strategy
With our main goal being “Based on Main Business of Port Service, Be a Local Standard; Expand Comprehensive
Service for Business Upgrade”, we strive to build a company featuring excellent management, great efficiency,
potential for sustained development and the ability to create constant value for its shareholders, employees, clients
and the society.
1) Main business of port service: We will consolidate our position as a hub port for container carries and a priority
port for handling imported and exported grain and feedstuff in the Pearl River Delta, build a local standard,
increase our brand value, ensure a steady and growing market share and solidify the foundation for development.
2) Comprehensive service: Leveraging on the Internet and Internet of Things technology, seizing opportunities in
the transformation of traditional ports and making use of our existing competitive edges, we will expand to the
upstream and downstream of the industrial chain and value chain, cultivate new profit growth points and try to
transform from a wharf operator to a comprehensive service provider.
3) Investment: Seizing opportunities in the reform of state-owned enterprises and the integration of local ports, we
will give full play to our function as a capital operation platform, obtain other resources through asset
reorganization and integration, and further expand and improve our port network so as to increase return on our
assets.
(3) Business plans for 2016
In face of the complex and changeable market in 2016, we will adhere to the guideline of “Recognize the
Situation, Based on the Main Business and Create a Bright Future” and vigorously respond to challenges so as to
achieve sound growth in our business results. Our main business plans are as follows:
1) To ensure development of our main business of port services and consolidate our competitive business lines
In order for a steady growth in our business scale, we will actively deal with changes in the shipping market,
enhance business expansion, improve our anti-risk capability, maintain flexible business strategies as well as
solidify and increase our local market position.
2) To accelerate construction projects so as to increase our resource capability
We will actively work with the government in expansion of Tonggu Channel Phase II to cater for bigger ships.
Meanwhile, upon completion of the upgrade on Berth 7# in Chiwan Port, we will continue to push forward
alteration of the storage yards in the port. As for Machong Port, we will speed up construction of supporting
facilities such as Phase II Silo and Phase III Silo so as to fully improve the economy of resources as well as the
market competitiveness.
3) To enhance lean management and innovation to drive growth
Lean management and innovation will be pushed forward in the form of projects and we will also attach
importance to application of the Internet technology in our port business. Meanwhile, we will set up an innovation
system and incentive mechanism to encourage innovation and enhance application and spread of our innovation
achievements in our actual operation.
4) To look for investment and cooperation opportunities for synergistic effect
In the current reform of state-owned enterprises as well as integration in the industry, we will keep looking for
opportunities for resource integration and business expansion so as to expand our business network, achieve
synergistic effect and even a leap-frog development.
(4) Capital needs and expenditure plan for 2016
To implement our future development strategies and achieve the business goals we have set, a capital expenditure
of RMB477,809,700 is planned for 2016, of which RMB372,631,000 will be invested in wharfs and warehouses,
RMB70,883,000 in mechanical equipment and technical improvement projects, RMB30,267,200 in computer
projects and RMB4,028,500 in administration and other. The said capital expenditures will be mainly funded by
cash inflows from operating activities of the Company and bank borrowings.
3. Significant changes in the main business in the reporting period
□ Yes √ No
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The Abstract of the 2015 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
4. Products contributing over 10% of the main business revenue or profit
□ Applicable √ Inapplicable
5. Seasonal or periodic characteristics in the operating performance that need special attention
□ Yes √ No
6. Significant YoY changes in the operating revenues, operating costs and net profits attributable to the
common shareholders or their composition
□ Applicable √ Inapplicable
7. Listing suspension or termination
□ Applicable √ Inapplicable
VI. Issues related to the financial report
1. YoY changes in the accounting policy, accounting estimation and measurement methods
□ Applicable √ Inapplicable
No changes
2. Retrospective restatements due to correction of significant accounting errors in the reporting period
□ Applicable √ Inapplicable
No such cases
3. YoY changes in the consolidation scope
√ Applicable □ Inapplicable
The consolidation scope narrowed for the Company merged in subsidiary. For details, see Note (VI) “Changes in
consolidation scope” to the consolidated financial statements in “Section X. Auditor’s Report”.
4. Explanation by the Board of Directors and the Supervisory Committee concerning the “non-standard
auditor’s report” issued by the CPAs firm for the reporting period
□ Applicable √ Inapplicable
For and on behalf of the Board
Shi Wei
Chairman
Shenzhen Chiwan Wharf Holdings Limited
Dated 28 March 2016
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