2011 SEMI-ANNUAL REPORT
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
Important Note
The Board of Directors, the Supervisory Committee as well as the directors,
supervisors and senior management staff of Shenzhen Chiwan Wharf Holdings
Limited (hereinafter referred to as “the Company”) hereby confirm that there
exists no omission, misstatement, or misleading information in this report, and
accept, individually and collectively, the responsibility for the factuality,
accuracy and completeness of the contents of this report.
This Semi-Annual Report has been reviewed and approved at the Second
Session of the Seventh Board of Directors of the Company. Director Wang Fen
did not attend the meeting due to business reason and appointed Chairman of the
Board Mr. Zheng Shaoping, as her proxy to attend and speak at the meeting on
his behalf. Director Wang Fen has given her consents to the full contents of this
semi-annual report.
Chairman of the Board Mr. Zheng Shaoping, as well as Chief Financial Officer
The Semi-Annual Jianguo and both English and Ms.
of the Company Mr. ZhangReport is written inFinancial ManagerChinese.Ma Zhihong
hereby confirm that the financial report contained herein is true and complete.
In case of any discrepancy between the two versions, Chinese version prevails.
The financial report contained herein has not been audited.
The Semi-Annual Report is written in both English and Chinese.
In case of any discrepancy between the two versions, Chinese version prevails.
Table of Contents
PART Ⅰ COMPANY PROFILE .............................................................................................1
PART II CHANGES IN SHARE CAPITAL AND SHAREHOLDERS...............................3
PART Ⅲ DIRECTORS, SUPERVISORS & SENIOR MANAGEMENT STAFF..............4
PART Ⅳ REPORT OF THE BOARD OF DIRECTORS......................................................5
PART Ⅴ SIGNIFICANT EVENTS .........................................................................................9
PART Ⅵ FINANCIAL REPORT (SEE ATTACHED, UN-AUDITED) ............................15
PART Ⅶ DOCUMENTS AVAILABLE FOR REFERENCE .............................................15
Semi-Annual Report 2011－Chiwan Wharf
PART Ⅰ COMPANY PROFILE
I. Corporate Information
A. Company's Name in Chinese 深圳赤湾港航股份有限公司（深赤湾）
Company's Name in English Shenzhen Chiwan Wharf Holdings Limited (Chiwan Wharf)
B. Legal Representative Mr. Zheng Shaoping, Chairman
C. Company Secretary Ms. Pei Jiangyuan
Securities Affairs Representative Ms. Hu Jingjing
Address 13/F., Chiwan Petroleum Building, Shenzhen, PRC
Tel +86 755 26694222
Fax +86 755 26684117
E-mail cwh@cndi.com
D. Place of Registration Chiwan, Shenzhen, PRC
Office address 13/F., Chiwan Petroleum Building, Chiwan, Shenzhen, PRC
Postal Code 518067
E-mail address cwh@cndi.com
Internet Website http://www.szcwh.com
E. Newspaper for Information "Securities Times" and "Ta Kung Pao”
Disclosure
Website for Annual Report http://www.cninfo.com.cn
Annual Report Preparation Secretariat of the Board of Directors
F. Stock Exchange Shenzhen Stock Exchange
Stock Short Name Chiwan Wharf A/Chiwan Wharf B
Stock Code 000022/200022
G. Other information
Date of Original Registration 19 July 1990
Place of Registration Chiwan, Shenzhen
Business Registration Number 440301501124494
Tax Registration Number Shen-Guo-Shui-Deng-Zi No. 440300618832968
Shen-Di-Shui-Deng-Zi No. 440301618832968
Organization Code 61883296-8
Accounting Firm PricewaterhouseCoopers Zhong Tian Certified Public
Accountants
Room 3706, Di Wang Commercial Centre
5002 Shennan Road East
Shenzhen, 518068, PRC
1
Semi-Annual Report 2011－Chiwan Wharf
II. Major Financial Highlights U n i t : R M B
As at 30 Jun. 2011 As at 31 Dec. 2010 +/- (%)
Total assets 6,773,160,926 6,202,184,742 9.21%
Total equity attributable to equity holders of the Company 3,222,886,079 3,239,549,058 -0.51%
Share capital 644,763,730 644,763,730 0.00%
Net assets per share attributable to equity holders of the Company 4.999 5.024 -0.50%
Jan.-Jun. 2011 Jan.-Jun. 2010 +/- (%)
Revenue 844,983,574 833,761,885 1.35%
Operating profit 403,107,347 491,087,919 -17.92%
Total profit 403,297,147 493,451,736 -18.27%
Net profit attributable to equity holders of the Company 258,357,428 308,963,482 -16.38%
Net profit attributable to equity holders of the Company after
258,193,085 307,126,626 -15.93%
extraordinary gains and losses
Earnings per share-Basic 0.401 0.479 -16.28%
Earnings per share -Diluted 0.401 0.479 -16.28%
Return on equity 8.02% 10.47% -2.45%
Net cash flows from operating activities 301,380,845 377,587,237 -20.18%
Net cash flows per share from operating activities 0.467 0.586 -20.31%
E x t r a o r d i n a r y g a i n s a n d l o s s e s
●
Items Amount
Net gains/(losses) on disposal of non-current assets 3,010
Non-operating income (expense) - net 186,790
Tax effects on extraordinary gains and losses (35,120)
Minority interests on extraordinary gains and losses 9,663
Total 164,343
III. Returns on equity and earnings per share calculated in accordance with the requirements
of the Rules for the Compilation of Information Disclosure by the Companies Publicly
Issuing Securities (No. 9) promulgated by CSRC
Return on equity Earnings per share
Profit for the reporting period
Fully diluted Weighted average Basic Diluted
Net profit attributable to equity
8.02% 7.78% 0.401 0.401
holders of the Company
Net profit attributable to equity
holders of the Company after 8.01% 7.78% 0.400 0.400
extraordinary gains and losses
2
Semi-Annual Report 2011－Chiwan Wharf
PART II CHANGES IN SHARE CAPITAL AND SHAREHOLDERS
Ⅰ. Changes in Share Capital U n i t : s h a r e
Before the change Increase(+)/decrease(-) After the change
Issue of
Bonus Reserves
Number Percentage additional Other Sub-total Number Percentage
issue to stocks
shares
1. Shares subject to trading moratorium 673,252 0.10% +131,666 +131,666 804,918 0.12%
a. State-owned shares
b. State-owned legal person shares
c. Other domestic shares 0 0.00% +13,988 +13,988 13,988 0.00%
Including:
Shares held by domestic non-state-owned
legal persons
Shares held by domestic individuals 0 0.00% +13,988 +13,988 13,988 0.00%
d. Shares held by overseas shareholders
Including:
Shares held by overseas legal persons
Shares held by overseas individuals
e. Shares held by senior management staff 673,252 0.10% +117,678 +117,678 790,930 0.12%
2. Shares not subject to trading moratorium 644,090,478 99.90% -131,666 -131,666 643,958,812 99.88%
a. Ordinary shares denominated in RMB 464,789,805 72.09% 0 0 464,789,805 72.09%
b. Domestically listed foreign shares 179,300,673 27.81% -131,666 -131,666 179,169,007 27.79%
c. Overseas listed foreign shares
d. Others
3. Total shares 644,763,730 100.00% 644,763,730 100.00%
※Shares held by domestic individuals were changed with ex-director Mr. Han Guimao’s leaving the position in
Jun. 2011. According to the regulations of “Rules on Stock Listing” issued by Shenzhen Stock Exchange,
shares held by Mr. Han Guimao cannot be traded within the half year after his demission. Meanwhile, restricted
shares held by senior management staff were changed due to such shares held by incoming new senior
management personnel.
Ⅱ. Number of shareholders and particulars about shares held by them (as at 30 Jun.inUt : 2011)ahs r e
38,676, among which 29,552 being shareholders of A shares and
Total number of shareholders
9,124 being shareholders of B shares
Shareholdings of top ten shareholders (all being shareholders holding shares not subject to trading moratorium)
Percentage Shares Shares Type of
Nature of of Total shares subject to pledged shares (A, B,
Name of shareholders
shareholders shareholding held trading or H or other
(%) moratorium frozen shares)
CHINA NANSHAN
57.51 370,802,900 0 0 A shares
DEVELOPMENT (GROUP) INC.
KEEN FIELD ENTERPRISES Holder of B
7.98 51,475,773 0 N/A B shares
LIMITED shares
CMBLSA RE FTIF TEMPLETON Holder of B
6.99 45,069,081 0 N/A B shares
ASIAN GRW FD GTI 5496 shares
GOVERNMENT OF SINGAPORE Holder of B
0.92 5,907,699 0 N/A B shares
INV. CORP.- A/C "C" shares
3
Semi-Annual Report 2011－Chiwan Wharf
Holder of B
EMPLOYEES PROVIDENT FUND 0.55 3,545,534 0 N/A B shares
shares
OMERS ADMINISTRATION Holder of B
0.46 2,956,444 0 N/A B shares
CORPORATION (SC03) shares
TEMPLETON CANADA Holder of B
0.41 2,671,924 0 N/A B shares
EMERGING MKTS FUND shares
FTIF-TEMPLETON EMERGING
Holder of B
MKT SMALLER COMPANIES 0.39 2,522,279 0 N/A B shares
shares
FUND
MIRAE ASSET ASIA PACIFIC
Holder of B
INFRA SECTOR EQTY INVSTMT 0.34 2,171,544 0 N/A B shares
shares
TRS 1
TEMPLETON EMERGING MKTS Holder of B
0.33 2,126,967 0 N/A B shares
FUND INC shares
China Nanshan Development (Group) Inc. (hereinafter referred to as “CND”) does
Explanation on associated
not have any relations with the shareholders holding shares not subject to trading
relationship among the top ten
moratorium. The Company does not know if there are any inter-relations among
shareholders:
other shareholders holding shares not subject to trading moratorium.
III. Within the reporting period, the controlling shareholder of the Company remained
unchanged, so did the shares held by CND.
PART Ⅲ DIRECTORS, SUPERVISORS & SENIOR MANAGEMENT STAFF
Ⅰ. Changes in shares held by the Company’s directors, supervisors and senior management
staff
Number of Number of Number of Number of Shares Number of
shares shares shares shares subject to stock options
Reason for
Name Title held at increased in decreased in held at trading held at
changes
year-begin reporting reporting period-end moratorium period-end
(share) period (share) period (share) (share) (share) (share)
Chairman of
Zheng Shaoping 212,652 0 0 212,652 159,489 0 Unchanged
the Board
Wang Fen Director 82,632 0 0 82,632 61,974 0 Unchanged
Fan Zhaoping Director 53,877 0 0 53,877 40,407 0 Unchanged
Yuan Yuhui Director 14,040 0 0 14,040 10,530 0 Unchanged
Director &
Executive
Zhang Ning 146,991 0 0 146,991 110,243 0 Unchanged
Deputy General
Manager
Zhao Chaoxiong Supervisor 64,954 0 0 64,954 48,716 0 Unchanged
Ni Keqin Supervisor 38,772 0 0 38,772 29,079 0 Unchanged
Deputy General
Qu Jiandong 112,265 0 0 112,265 84,199 0 Unchanged
Manager
Deputy General
Zhao Qiang 84,948 0 0 84,948 63,711 0 Unchanged
Manager
Deputy General
Zhang Jianguo 98,782 0 0 98,782 74,087 0 Unchanged
Manager, CFO
Deputy General
Xiong Haiming 93,807 0 0 93,807 70,355 0 Unchanged
Manager
Company
Pei Jiangyuan 50,852 0 0 50,852 38,139 0 Unchanged
Secretary
4
Semi-Annual Report 2011－Chiwan Wharf
Ⅱ. Changes of directors, supervisors and senior management staff during the reporting
period
The office terms of the Sixth Board of Directors and the Sixth Supervisory Committee as well as
senior management staff all came to expiration in May 2011.
The 2010 Annual General Meeting held on 27 May 2011, re-elected members for the Board of
Directors and the Supervisory Committee. At the meeting, the Report on Re-election of the Board
of Directors, the Report on Re-election of Independent Directors and the Report on Re-election of
the Supervisory Committee were reviewed and approved, electing Zheng Shaoping, Tian Junyan,
Wang Fen, Fan Zhaoping, Yuan Yuhui and Zhang Ning as directors for the Seventh Board of
Directors; Li Wuzhou, Hao Zhujiang and Zhang Jianjun as independent directors for the Seventh
Board of Directors; and Yu Liming, Mary-Jean Wong and Guo Songhua as supervisors for the
Seventh Supervisory Committee. Meanwhile, the Workers’ Representative Assembly on 4 Mar.
2011 elected Mr. Zhao Chaoxiong and Ms. Ni Keqin as staff-representative supervisors for the
Seventh Supervisory Committee. The new office term of directors and supervisors mentioned above
will last till May 2014.
The First Session of the Seventh Board of Directors was held on 27 May 2011, electing Mr. Zheng
Shaoping as the Chairman for the Seventh Board of Directors; Mr. Zhang Ning as the Executive
Deputy General Manager; Mr. Qu Jiandong, Mr. Zhao Qiang, Mr. Zhang Jianguo and Mr. Xiong
Haiming as deputy general managers; Mr. Zhang Jianguo as CFO; and Ms. Pei Jiangyuan as the
Company Secretary for the Seventh Board of Directors. The new office term of senior management
staff mentioned above will also last till May 2014.
The First Session of the Seventh Supervisory Committee was held on 27 May 2011, at which Mr.
Yu Liming was elected as the Chairman for the Seventh Supervisory Committee.
PART Ⅳ REPORT OF THE BOARD OF DIRECTORS
Ⅰ. Business Performance
A. Core business scope and business performance
The Company is principally engaged in handling, warehousing and transportation of containers
and bulk cargoes, as well as the provision of related services.
During the reporting period, China’s import and export trading volume grew 25.8% from a year
earlier, with a year-on-year rise of 12.9% in container throughput. The container throughput in
Shenzhen Port, living on foreign trade, was up 1.8% when compared with the same period of last
year. Affected by weak economic recovery in American and European countries, the relocation of
manufacturing businesses in hinterland and the adjustment of shipping lines by shipping
companies, the Company’s container throughput suffered a slight decrease of 5% on a year-on-
year basis. In terms of the bulk cargo handling business, the throughput in Machong Port grew
substantially and Chiwan Port also adjusted its cargo source structure to increase resource
utilization efficiency and earnings. As a result, the combined bulk cargo throughput in the said
two ports in the first half of 2011 went down 6.1% over the corresponding period of last year, but
5
Semi-Annual Report 2011－Chiwan Wharf
the combined earnings rose significantly by 32% on a year-on-year basis. Meanwhile, business in
relation to port trailer service, tugboat service and other supporting services saw declines at
different degrees due to the throughput. Specific business indexes were as follows:
Business Highlights Jan.-Jun. 2011 Jan.-Jun. 2010 +/-
Total throughput of cargo (’000 tons) 30,922 31,505 -1.9%
Including: container (’000 TEU) 2,805 2,951 -4.9%
Chiwan Port 1,967 1,986 -1%
Joint venture in Mawan Port 838 949 -11.7%
Bulk cargoes (’000 tons) 4,734 5,041 -6.1%
Chiwan Port 3,387 4,203 -19.4%
Machong Port 1,347 839 60.5%
Hours charged for trailer service (’000 hours) 584 614 -4.9%
Hours charged for tugboat service (hour) 16,377 16,489 -0.7%
B. Year-on-year changes in revenue, operating profit and net profit : U n i t : R M B
Item Jan.-Jun. 2011 Jan.-Jun. 2010 +/-
Revenue 844,983,574 833,761,885 1.35%
Operating profit 403,107,347 491,087,919 -17.92%
Net profit attributable to equity holders of the Company 258,357,428 308,963,482 -16.38%
No substantial change took place in the structures of core business and profit breakdown during the
reporting period.
Revenue was slightly increased by 1.35% compared with the same period of last year. Operating
profit and net profit attributable to equity holders of the Company went down 17.92% and 16.38%
respectively, a larger decrease than that of the business volume, which was mainly due to the
substantial rise in prices of various raw materials, labor cost, loan interest and so on from a year
earlier.
C. Core business accounting for 10% or above of the revenue for the reporting period: U n i t : R M B
Operating +/- of operating
+/- of revenue +/- of operating
Business Revenue Operating cost profit margin profit margin
YoY (%) cost YoY (%)
(%) YoY (%)
Cargo handling 790,369,518 334,992,667 57.62% 1.22% 5.06% -1.55%
D. Profit breakdown, core business structure and profitability of the Company did not have
significant changes during the reporting period.
E. The Company conducted no other business, which exerted significant influence on the
Company’s profit during the reporting period.
F. Media Port Investments Limited (hereinafter referred to as “MPIL”) is jointly incorporated at
the British Virgin Islands by Chiwan Wharf Holdings (HK) Ltd. (a wholly-owned subsidiary
company of the Company hereinafter referred to as “CWHK”) and China Merchants Holdings
6
Semi-Annual Report 2011－Chiwan Wharf
(International) Company Limited as an investment controlling company. The said two
companies hold its 50% equity separately. MPIL holds 60% equity of Shenzhen Mawan Wharf
Co., Ltd., Shenzhen Mawan Port Service Co., Ltd. and Shenzhen Mawan Terminals Co., Ltd. in
total. During the reporting period, MPIL gained net profit of RMB84,088,692 through the
above-mentioned three companies.
For the reporting period, the Company earned investment income amounting to RMB42,044,346
from MPIL, accounting for 16.27% of net profit attributable to equity holders of the Company
for the reporting period.
Ⅱ. Financial Status
A. Asset breakdown and reasons for significant changes year-on-year:
U n i t : R M B
Item As at 30 Jun. 2011 As at 31 Dec. 2010 +/- (%)
Dividend payable 511,876,650 213,351,043 139.92%
Reasons for significant changes:
The dividend payable increased because it was declared at the Annual General Meeting in May that
a cash dividend was to be distributed in July.
B. Profit breakdown and reasons for significant year-on-year changes:
U n i t : R M B
Item Jan.-Jun. 2011 Jan.-Jun. 2010 +/- (%)
Administrative expenses 76,912,960 55,387,647 38.86%
Investment income 58,444,197 84,416,791 -30.77%
Reasons for significant changes:
Administrative expenses increased due to the rise of labor cost.
Investment income decreased because the Company sold some equity of an associated company in
the same period of last year while there was no such event in the reporting period.
C. Cash flow breakdown:
Unit: RMB
Item Jan.-Jun. 2011 Jan.-Jun. 2010 +/- (%)
Net cash flows from operating activities 301,380,845 377,587,237 -20.18%
Net cash flows from investing activities (335,089,746) (59,614,883) 462.09%
Net cash flows from financing activities 175,174,443 48,940,109 257.94%
Net increase in cash and cash equivalents 141,465,542 366,912,463 -61.44%
7
Semi-Annual Report 2011－Chiwan Wharf
Reasons for significant changes:
Net cash inflows from operating activities decreased due to the drop of operating profit for the
reporting period.
Net cash outflows from investing activities increased mainly because ⑴ construction expenses on
the Berth 13 extension project and the Dongguan Machong Port project increased from a year
earlier; and ⑵the Company purchased Hinwin Development Limited in the reporting period.
Net cash inflows from financing activities increased mainly because ⑴ the Company received the
capital contribution from Yihai Kerry Investment Company Limited; and ⑵ more borrowings were
obtained in the reporting period.
Ⅲ. Investments in reporting period
A. The Company did not raise any funds in the reporting period, and the latest funds raised by the
Company had been used up by the end of 1996.
B. Significant investment projects with non-raised funds
In the reporting period, the Company made a total investment of RMB335.83 million, of which
RMB110.58 million was invested in fixed assets at Chiwan Port, mainly referring to the Berth
13 extension project; RMB124.96 million was invested in Dongguan Machong Port project; and
RMB100.29 million was paid to acquire 100% equity of Hinwin Development Limited.
Ⅳ. Outlook for future development of the Company
A. Development trend of the industry in which the Company is engaged
It will be difficult for American and European economies to pick up in the second half of this
year, and the imbalance in shipping demand and supply will continue. As such, container
throughput is expected to grow at a slower pace in the coming six months. And ports in the Pearl
River Delta, living on export-oriented economy, will take the first hit. However, as the
traditional peak season for containers is nearer and the Company puts more effort in improving
business, the container handling business of the Company is expected to stop the decline and
pull a slight rise.
The bulk cargo handling business of the Company will remain stable as a whole. Throughput
usually depends on resources. Increasing resources is not the only way to achieve business
growth, improving resource allocation efficiency can also achieve the same purpose.
B. Main problems and risks encountered by the Company
The Company will be confronted with much higher labor, fuel and material costs caused by a
rising inflation in China. It will also face the pressure on port resources and operations resulting
from the growing ship size and the imbalanced ship arrival.
8
Semi-Annual Report 2011－Chiwan Wharf
C. Business plan for the second half of the year, as well as countermeasures against risks
Keeping an eye on the changeable market, the Company will adjust its annual business plan
responsively, tap internal and external resources in depth, and make itself more responsive to the
market. It will also adjust its business strategies and structure in a timely manner and expand
business with clear targets. Meanwhile, it will try to make breakthroughs in all business
segments by continuing to improve service quality and supporting services while at the same
time strengthening internal management and cost control.
PART 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. Along with the
development of the Company, it will, as always, keep perfecting its corporate governance and
protecting the interests of all shareholders and stakeholders.
Non-compliance of corporate governance standards by the Company during the reporting period:
according to the Accounting Standards for Business Enterprises No.33—Consolidated Financial
Statements, the Financial Department of the Company should submit the Company’s monthly
financial statements around the 10th day of each month to CND, the main shareholder holding
57.51% of the Company’s shares, for the need of the latter’s preparing its consolidated
statements.
At the Fifth Session of the Fifth Board of Directors of the Company held on 17 April 2007, the
Report Concerning the Submission of Monthly Financial Statements to the Substantial
Shareholder was reviewed and approved, and it was agreed that Financial Department shall
provide the company’s monthly financial statements to CND. On 25 August 2007, the Company
disclosed the details of submitting the financial statements to substantial shareholders in the
Self-inspection Report and Rectification Plan for Corporate Governance in 2007 of Shenzhen
Chiwan Wharf Holding Co., Ltd. In compliance with the requirements of the Shenzhen
Securities Regulatory Bureau, the Company delivered “Undisclosed Information Provided by
the Company to its Substantial Shareholders and Actual Controllers” to the Shenzhen Securities
Regulatory Bureau before the tenth day every month since September 2007, including the name
list of relevant parties and relevant information. The above-mentioned matters did not affect the
Company’s independence. In the future, the Company will disclose the relevant information in
due course at the request of the regulatory authorities.
Ⅱ. Internal control progress
As required by the Circular on Doing a Good Job in Pilot Internal Control Regulation in Listed
Companies of Shenzhen (Shen-Zheng-Ju-Gong-Si-Zi 2011 No. 31), the Company has
〔
〕
completed all the preparing work, with details as follows:
9
Semi-Annual Report 2011－Chiwan Wharf
A. An internal control work team has been formulated within the Company, with the chairman as
the leader.
B. A plan for carrying out internal control regulations has been worked out, which has been put
into practice after it was reviewed and approved at the First Special Session of the Audit
Committee under the Sixth Board of Directors for 2011 and the Fourth Special Session of the
Sixth Board of Directors for 2011 on 27 Apr. 2011. And it has been disclosed as required.
C. Scope and business cycles for the internal control’s implementation were set. Subsidiaries
within the application scope have all formed their own internal control teams to work with the
Company’s internal control work team in carrying out the project.
The Company is now in the phase of benchmarking. Internal control work teams of the
Company and subsidiaries within the application scope review their existing internal control
documents, amend them according to the guidelines for internal control of listed companies,
examine the internal control rules on financial report preparation by way of interviews and
enquiries, then produce internal control documentation.
In line with the schedule for internal control improvement for 2011, the Company has finished
the first phase of the internal control project (preparation) and started the second phase (gap
analysis). The internal control project is right on schedule, with no derivation or delay.
As resolved at the Fourth Special Session of the Sixth Board of Directors for 2011 held on 27
Apr. 2011 and the 2010 Annual General Meeting held on 27 May 2011,
PricewaterhouseCoopers Zhong Tian Certified Public Accountants has been appointed by the
Company as its internal control audit agency for 2011. And the Company’s internal control
work teams, together with the audit agency, have drawn up a preliminary plan for internal
control audit for 2011.
III. Profit and dividend distribution plan for 2010 and its implementation
As audited by PricewaterhouseCoopers Zhong Tian Certified Public Accountants Co., Ltd., the
net profit of the Company for 2010 was RMB381,220,010, and the accumulative attributable
profit was RMB574,774,541.
1. In accordance with the Company Law and the Articles of Association of the Company,
RMB38,122,001, i.e. 10% of the Company’s net profit as audited for the year 2010 was to
be withdrawn as statutory surplus reserve;
2. It was planned that a cash dividend of RMB4.63 per ten shares (tax included) totaling
RMB298,525,607 would be paid based on the total share capital of 644,763,730 shares as at
the end of 2010.
After the aforesaid distribution, the retained profit of the Company was RMB238,126,933.
The said profit distribution plan was completed on 26 Jul. 2011, with the day of record for A
shares and the last trading day for B shares both being 21 Jul. 2011, and the ex-dividend day
being 22 Jul. 2011.
IV. For year 2011, no interim profit distribution will be conducted and no reserves will be
transferred into shares.
10
Semi-Annual Report 2011－Chiwan Wharf
V. During the reporting period, the Company was not involved in any significant lawsuits or
arbitrations.
VI. During the reporting period, the Company did not conduct any significant asset
acquisition, sale or reorganization.
VII. During the reporting period, no shareholders holding over 30% shares of the Company
put forward and implemented plans of increasing the shares held by them.
VIII. During the reporting period, there existed no new securities investments. The Company
did not acquire equity of financial enterprises such as commercial banks, securities
companies, insurance companies, trust companies and futures companies, or equity of
the companies to be listed.
Set out below was the equity of other listed companies held by the Company, which was
acquired by the Company in the previous periods and carried down to the current period.
Unit: RMB
Shareholding Gains/ Changes in
Initial Book value owners’ equity
Stock percentage in (losses) in
Short name of the stock investment at period- during reporting
code the listed reporting
amount end period
company period
600377 JiangSu Expressway 1,120,000 0.02% 5,410,000 - (934,800)
Shenzhen Petrochemical
400032 3,500,000 0.26% 382,200 - -
Industry (Group) Co., Ltd.
Guangdong Guang Jian
400009 27,500 0.02% 17,000 - -
Group Limited Company
Total 4,647,500 - 5,809,200 - (934,800)
IX. Special explanation and independent opinion by independent directors
In accordance with the Circular on Relevant Issues Concerning Regulating Capital Flows between
Listed Companies and Related Parties and Provision of External Guaranty By Listed Companies
(ZJF [2003] No.56) and the Circular on Regulating Provision of Guarantees for Outside Parties by
Listed Companies (ZJF (2005) No.120) (hereinafter referred to as “the Circulars”), as well as the
Circular on Doing a Good Job in 2011 Semi-Annual Report Disclosure by Listed Companies (SZS
2011 No. 193), Mr. Li Wuzhou, Mr. Hao Zhujiang and Mr. Zhang Jianjun, all independent
〔
〕
directors of the Company, have carefully and responsibly examined the Company’s provision of
guarantees for other parties and the capital occupation by its controlling shareholder and other
related parties during the first six months of 2011, under the principle of being responsible to the
Company, all its shareholders and investors and the principle of seeking truth from facts. Upon the
examination, they made the relevant explanation as follows:
1. The Company strictly abided by the requirements of the Circulars. No funds occupation by its
controlling shareholder had been found by 30 Jun. 2011; nor were such cases incurred in the
previous periods and carried down to the reporting period. The funds flows between the
Company and its related parties during the reporting period were considered normal operational
funds flows.
11
Semi-Annual Report 2011－Chiwan Wharf
2. As at 30 Jun. 2011, the balance of guarantee provided to outside parties by the Company was
zero.
3. As at 30 Jun. 2011, the accumulative guarantee amount provided by the Company for its
wholly-owned and controlled subsidiaries reached RMB130,930,000, accounting for 4.06% of
the Company’s net assets as at 30 Jun. 2011, The aforesaid guarantees were in line with
relevant laws and regulations concerning the provision of guarantees for other parties by listed
companies, which were detailed as follows:
Relationship between the guaranteed
Guaranteed party Guarantee amount
party and the Company
Chiwan Wharf (Hong Kong) Limited A wholly-owned subsidiary RMB79,050,000
Dongguan Chiwan Wharf Company Limited A controlled subsidiary RMB51,880,000
To sum up, the independent directors were of the opinion that the Company effectively controlled
its financial risks during the reporting period, without doing any harm to the interests of investors.
X. Significant related transactions
A. Related transactions arising from routine operation
Payment of Land use fees
Jan.-Jun. 2011 Jan.-Jun. 2010
CND RMB 21,169,725 RMB 20,997,382
Due to the need of routine operation, the Harbor Division of the Company and Chiwan Container
Terminal Co., Ltd. (CCT), in which the Company held a total of 55% equity directly and indirectly,
rented lands from CND for bulk cargo and container stacking. Recognized as frequent transactions
of the Company, the said transactions occurred in the previous years and will continue to occur in
the future.
Almost as same as the land rents in the western Shenzhen ports in 2011, the transaction price was a
fair market price decided through negotiation between transaction parties at RMB3.5—12.5/ sq.m..
According to the contract signed, the rent was paid by month and a penalty would be charged at a
ratio of 0.5% of the monthly rental fee for each day overdue.
During the reporting period, the aforesaid rents accounted for 88.12% of the Company’s total rental
expenses for stacking yards and offices, which caused expenses of RMB21.17 million.
B. Creditor’s rights and liabilities with related parties
Cash at bank and on hand As at 30 Jun. 2011 As at 31 Dec. 2010
China Merchants Bank Co., Ltd. RMB 99,294,153 RMB 123,853,303
As at 30 Jun. 2011, the account above accounted for 10.76% of the Company’s total monetary funds
(15.84% in the year of 2010).
Other receivables As at 30 Jun. 2011 As at 31 Dec. 2010
Media Port Investments Ltd RMB 44,879,120 RMB 44,879,120
12
Semi-Annual Report 2011－Chiwan Wharf
As at 30 Jun. 2011, the account above accounted for 80.75% of the Company’s total other
receivables (85.05% in the year of 2010).
Short-term borrowing As at 30 Jun. 2011 As at 31 Dec. 2010
China Merchants Bank Co., Ltd. RMB 50,000,000 RMB 50,000,000
As at 30 Jun. 2011, the account above accounted for 3.42% of the Company’s total short-term
borrowings (4.08% in the year of 2010).
XI. Significant contracts
A. During the reporting period, the Company did not hold in trust, contract or lease any significant
assets of other companies, nor vice versa.
B. During the reporting period, the Company did not provide any guarantee for external parties.
By the end of the reporting period, the Company provided guarantees only for the bank loans
granted to a wholly-owned subsidiary Chiwan Wharf (Hong Kong) Limited and a controlled
（
）
subsidiary Dongguan Chiwan Wharf Company Limited) of the Company. Details are as
（
follows:
Subsisting
Decision-making
Guaranteed Amount of guarantee Type of
Term of guarantee procedures for
party guarantee liability or guarantee
guarantee
not
Reviewed and
Chiwan
Guarantee approved at the Tenth
Wharf (Hong HKD93
2010.11.23-2012.5.21 Yes with joint Special Session of the
Kong) million
liability Sixth Board of
Limited
Directors for 2010
First reviewed and
approved at the Sixth
Dongguan RMB1.88 Special Session of the
Chiwan 2011.2.25-2011.8.25 Guarantee Sixth Board of
million
Wharf Yes with joint Directors for 2009,
Company liability then at the First
Limited Special Shareholders’
RMB 50 General Meeting for
2010.9.13-2011.9.13
million 2009
By the end of the reporting period, the Company had provided guarantees for external parties
totaling RMB130.93 million, accounting for 4.06% of the Company’s net assets.
C. During the reporting period, the Company did not entrust others to manage its cash assets.
XII. Particulars about investor relations reception, investigation, communication, interview,
etc., in the reporting period
During the reporting period, the Company handled warm-heartedly investors’ phone calls and held
one-on-one meetings with investors. The Company disclosed relevant information to investors in
accordance with the Company Law, the Securities Law, the Rules on the Management of Investors
13
Semi-Annual Report 2011－Chiwan Wharf
Relations and other laws and regulations. During the reporting period, the Company received in
aggregate 24 visits. The Company gave visitors an introduction to the profile of the Company and
the development of its business, and made reasonable disclosures regarding the operations,
investments and financial status of the Company that the investors were interested in. The Company
did not disclose, reveal or divulge to any specific visitors any material information not generally
available to the public. Details of such interviews and visits are as follows:
Topics discussed
Type Time Location Means Investor and information
provided
UBS Basic information
Jan. 2011 Shanghai Clients of UBS of operations,
Conference
Promotional investments and
Conference by the financial status
activities
China of the Company
launched Jun. 2011 Shenzhen Clients of China Merchants Securities
Merchants
by security
Securities Information
firms
UBS provided:
Jun. 2011 Hong Kong Clients of UBS Brochure of the
Conference
Company
One-on-one
China Merchants Securities, UBS SDIC
meeting
Jan. 2011
Tel conference Goldman Sachs (Asia) L.L.C.
Changjiang Securities, Lion Fund Management
Co., Ltd., Dacheng Fund Management Co.,
Ltd., SWS Research Co., Ltd., Bank of China
Investment Management, Matthews
International Capital Management llc, Guosen
Securities, China AMC, First State
One-on-one
Investments, Haitong Securities, E Fund
meeting
Feb. 2011 Management Co., Ltd., China Merchants Fund
Management Co., Ltd., Industrial Securities
Co., Ltd. , Rongtong Fund, Essence Securities,
SYWG BNP Paribas Asset Management Co.,
Ltd., Minsheng Royal Fund Management Co.,
Ltd., Mizuho Corporate Bank Ltd.
Tel conference Guosen Securities
Receiving Conference One-on-one
visits from Mar. 2011 room of the Theleme Partners LLP
meeting
investors Company
Apr. 2011 Tel conference Templeton Emerging Markets
Morgan Stanley Huaxin Funds, China
Merchants Fund, Sinolink Securities, China
Merchants Securities, Jefferies, Shenyin
Wanguo Securities, CICC, Shanghai Yuanhao
Investment Management Co., Ltd., United
Innovation Capital Ltd., CP Capital, Hangseng
One-on-one
Capital, Shenzhen Huaqiang Dingxin
meeting
May 2011 Investment Co., Ltd., Shenzhen Huaqiang
Investment & Guaranty Co., Ltd., Cowin
Investment, Huatai Securities, Aisawa
Securities, The Capital Group, Macquarie,
Guosen Securities, UBS Securities Company
Limited, Citic Securities
Tel conference Theleme Partners LLP、Kelusa Capital
One-on-one
Jun. 2011 RBS Securities, CLSA Asia-Pacific Markets
meeting
14
Semi-Annual Report 2011－Chiwan Wharf
PART Ⅵ FINANCIAL REPORT (SEE ATTACHED, UN-AUDITED)
PART Ⅶ DOCUMENTS AVAILABLE FOR REFERENCE
I. 2011 Semi-Annual Report carrying the signature of Chairman of the Board;
II. 2011 Semi-Annual Financial Report carrying the signatures of the Company’s Legal
Representative, Chief Financial Officer and Financial Manager;
III. Original copies of all documents and public notices thereof disclosed during the reporting
period on Securities Times and Ta Kung Pao; and
IV. Other relevant materials.
For and on behalf of the Board
Zheng Shaoping
Chairman
Shenzhen Chiwan Wharf Holdings Limited
Dated 18th August, 2011
15
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS AND REPORT
FOR THE SIX MONTHS ENDED 30 JUNE 2011
[English Translation for Reference Only. Should there be any inconsistency between the
Chinese and English versions, the Chinese version shall prevail.]
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
[English translation for reference only]
Contents Page
Financial Statements and Report for the six months ended 30 June 2011
Consolidated and Company’s balance sheets 1-2
Consolidated and Company’s income statements 3
Consolidated and Company’s cash flow statements 4
Consolidated statement of changes in owners’ equity 5
Company’s statement of changes in owners’ equity 6
Notes to financial statements 7 - 107
Supplementary information to financial statements 108 -110
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 30 JUNE 2011
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
30-Jun-11 31-Dec-10 30-Jun-11 31-Dec-10
ASSETS Notes The Group The Group The Company The Company
Current assets
Cash at bank and
on hand 5(1) 923,185,625 781,720,083 619,059,211 494,364,355
Notes receivable 5(2) - 4,640,000 - 1,700,000
Accounts receivable 5(4),13(1) 246,557,343 179,772,755 21,754,200 9,336,968
Advances to
suppliers 5(6) 32,375,332 31,256,172 2,247,500 316,780
Interests receivable 5(3) 123,333 1,318,202 215,235 91,902
Dividends
receivable 1,224,863 - 261,845,299 304,203,089
Other receivables 5(5),13(2) 55,579,859 52,765,361 183,661,430 365,862,136
Inventories 5(7) 25,385,346 23,888,526 1,068,313 1,099,168
Total current assets 1,284,431,701 1,075,361,099 1,089,851,188 1,176,974,398
Non-current assets
Available-for-sale
financial assets 5(8) 5,410,000 6,640,000 5,410,000 6,640,000
Long-term
receivables - - 11,004,304 11,004,304
Long-term equity
investments 5(9),13(3) 1,302,679,505 1,149,921,886 1,923,233,743 1,589,644,572
Investment
properties 5(11) 36,592,257 29,379,544 28,332,003 20,991,116
Fixed assets 5(12) 2,568,332,792 2,652,957,915 144,457,606 156,903,932
Construction in
progress 5(13) 268,749,180 14,593,516 261,394 450,900
Intangible assets 5(14) 1,055,003,337 1,074,247,819 66,808,518 68,371,761
Goodwill 5(15) 15,244,795 10,858,898 - -
Long-term prepaid
expenses 5(16) 63,543,552 63,848,189 5,209,856 5,299,666
Deferred tax assets 5(18) 51,502,881 52,083,662 23,183,838 21,221,357
Other non-current
assets 5(17) 121,670,926 72,292,214 - -
Total non-current
assets 5,488,729,225 5,126,823,643 2,207,901,262 1,880,527,608
TOTAL ASSETS 6,773,160,926 6,202,184,742 3,297,752,450 3,057,502,006
-1-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED AND COMPANY BALANCE SHEETS
AS AT 30 JUNE 2011 (CONTINUED)
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
LIABILITIES AND 30-Jun-11 31-Dec-10 30-Jun-11 31-Dec-10
OWNERS’ EQUITY Notes The Group The Group The Company The Company
Current liabilities
Short-term borrowings 5(20) 1,463,550,000 1,225,550,000 606,050,000 478,550,000
Notes payable 5(21) 1,875,000 1,895,750 - -
Accounts payable 5(22) 282,212,391 214,723,251 11,292,359 16,221,238
Advances from customers 5(23) 5,163,375 4,769,320 4,140,817 3,643,835
Employee benefits payable 5(24) 31,769,196 36,929,912 23,931,950 15,275,662
Taxes payable 5(25) 62,057,172 100,583,520 (1,375,900) 605,756
Interests payable 5(26) 3,291,127 2,958,406 2,035,434 1,829,970
Dividends payable 5(27) 511,876,650 213,351,043 298,525,607 -
Other payables 5(28) 48,758,621 45,027,806 807,149,224 570,336,042
Current portion of non- 5(29,31)
current liabilities 285,451,750 412,951,750 85,000,000 212,500,000
Total current liabilities 2,696,005,282 2,258,740,758 1,836,749,491 1,298,962,503
Non-current liabilities
Special payable 5(30) 76,528,850 69,119,645 - -
Deferred tax liabilities 5(18) 1,029,600 1,324,800 1,029,600 1,324,800
Other non-current liabilities 5(31) 63,455,081 65,841,707 - -
Total non-current liabilities 141,013,531 136,286,152 1,029,600 1,324,800
Total liabilities 2,837,018,813 2,395,026,910 1,837,779,091 1,300,287,303
Owners' equity
Share capital 5(32) 644,763,730 644,763,730 644,763,730 644,763,730
Capital surplus 5(33) 169,624,955 144,909,755 153,171,228 154,106,028
Surplus reserves 5(34) 421,692,405 383,570,404 421,692,405 383,570,404
Undistributed profits 5(35) 2,000,224,292 2,079,724,472 240,345,996 574,774,541
Foreign exchange
translation differences (13,419,303) (13,419,303) - -
Total equity attributable to
equity holders of the
Company 3,222,886,079 3,239,549,058 1,459,973,359 1,757,214,703
Minority interests 5(36) 713,256,034 567,608,774 - -
Total owners' equity 3,936,142,113 3,807,157,832 1,459,973,359 1,757,214,703
TOTAL LIABILITIES AND
OWNERS’ EQUITY 6,773,160,926 6,202,184,742 3,297,752,450 3,057,502,006
The accompanying notes form an integral part of these financial statements.
-2-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED AND COMPANY INCOME STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Jan.-Jun. 2011 Jan.-Jun. 2010 Jan.-Jun. 2011 Jan.-Jun. 2010
Items Notes Consolidated Consolidated Company Company
Revenue 5(37),13(4) 844,983,574 833,761,885 93,475,369 83,968,138
Less: Cost of sales 5(37),13(4) (359,809,074) (336,890,090) (62,270,145) (62,927,819)
Tax and levies on operations 5(38) (34,992,446) (29,897,320) (3,935,057) (3,155,974)
General and administrative
expenses (76,912,960) (55,387,647) (34,237,253) (19,877,921)
Financial (expenses) /income - 5(39)
net (28,605,944) (4,915,700) (19,525,431) (2,920,881)
Asset impairment
reversals/(losses) - - - -
Add: Investment income 5(41),13(5) 58,444,197 84,416,791 24,181,344 32,906,831
Including: share of results of 5(41)
associates 58,084,197 84,106,791 15,614,034 27,706,685
Operating profit 403,107,347 491,087,919 (2,311,173) 27,992,374
Add: Non-operating income 5(42) 287,103 2,469,174 209,757 352,045
Less: Non-operating expenses 5(43) (97,303) (105,357) (23,195) (17,939)
Including: Loss on disposals of
non-current assets (67,124) (57,458) (23,175) (12,939)
Total profit 403,297,147 493,451,736 (2,124,611) 28,326,480
Less: Income tax (expenses)/ income 5(44) (66,792,459) (65,939,121) 4,343,674 (2,295,068)
Net profit 336,504,688 427,512,615 2,219,063 26,031,412
Attributable to equity holders of
the Company 258,357,428 308,963,482
Minority interests 78,147,260 118,549,133
Earnings per share
(attributable to equity holders of
the Company)
Basic earnings per share 5(45) 0.401 0.479
Diluted earnings per share 5(45) 0.401 0.479
Other comprehensive income 5(46) (934,800) (818,718) (934,800) (819,000)
Total comprehensive income 335,569,888 426,693,897 1,284,263 25,212,412
Attributable to equity holders of
the Company 257,422,628 308,144,764
Minority interest 78,147,260 118,549,133
The accompanying notes form an integral part of these financial statements.
-3-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED AND COMPANY INCOME STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Jan.-Jun. 2011 Jan.-Jun. 2010 Jan.-Jun. 2011 Jan.-Jun. 2010
Items Notes Consolidated Consolidated Company Company
1. Cash flows from operating activities
Cash received from rendering of services 776,977,795 794,087,904 82,842,309 68,736,435
Cash received relating to other operating
activities 5(47) 13,260,433 8,177,173 238,196,844 236,820,327
Sub-total of cash inflows 790,238,228 802,265,077 321,039,153 305,556,762
Cash paid for goods and services (198,385,053) (161,385,911) (47,999,210) (45,053,251)
Cash paid to and on behalf of employees (113,064,057) (105,080,062) (31,366,176) (29,882,464)
Payments of taxes and levies (143,455,455) (117,713,056) (4,601,568) (5,059,624)
Cash paid relating to other operating activities 5(47) (33,952,818) (40,498,811) (90,814,629) (67,976,214)
Sub-total of cash outflows (488,857,383) (424,677,840) (174,781,583) (147,971,553)
Net cash flows from operating activities 5(47) 301,380,845 377,587,237 146,257,570 157,585,209
2. Cash flows from investing activities
Cash received from disposals of investments - - 270,300,000 10,000,000
Cash received from returns on investments 360,000 310,000 52,149,964 63,611,777
Net cash received from disposals of fixed
assets and intangible assets 384,000 10,681,289 169,500 -
Sub-total of cash inflows 744,000 10,991,289 322,619,464 73,611,777
Cash paid to purchase fixed assets, intangible
assets and other long-term assets (235,549,565) (70,606,172) (3,389,647) (3,341,851)
Net cash received from subsidiaries and other
operational units (100,284,181) - - -
Cash paid relating to other investing activities - - (319,200,000) (30,000,000)
Sub-total of cash outflows (335,833,746) (70,606,172) (322,589,647) (33,341,851)
Net cash flows from investing activities (335,089,746) (59,614,883) 29,817 40,269,926
3. Cash flows from financing activities
Cash received as investment 91,940,000 - - -
Cash received from borrowings 521,050,000 374,880,000 266,050,000 143,440,000
Sub-total of cash infllows 612,990,000 374,880,000 266,050,000 143,440,000
Cash repayments of borrowings (410,550,000) (319,440,000) (266,050,000) (143,440,000)
Cash payments for interest expenses and
distribution of dividends or profits (26,224,557) (5,902,112) (20,772,531) (3,822,428)
Cash paid relating to other activities (1,041,000) (597,779) (820,000) (298,207)
Sub-total of cash outflows (437,815,557) (325,939,891) (287,642,531) (147,560,635)
Net cash flows from financing activities 175,174,443 48,940,109 (21,592,531) (4,120,635)
4. Effect of foreign exchange rate changes on
cash and cash equivalents - - - -
5. Net increase in cash and cash equivalents 141,465,542 366,912,463 124,694,856 193,734,500
Add: Cash and cash equivalents at beginning
of year 5(48) 781,720,083 741,096,267 494,364,355 453,407,958
6. Cash and cash equivalent at 30 June 2011 5(48) 923,185,625 1,108,008,730 619,059,211 647,142,458
The accompanying notes form an integral part of these financial statements.
-4-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN OWNERS’ EQUITY
For The Six Months Ended 30 June 2011
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Items Notes Attributable to equity holders of the Company
Share Capital Surplus Undistributed Translation Total owners'
capital surplus reserves profits difference Minority interest equity
Balance at 1 January 2010 644,763,730 145,410,155 355,134,736 1,721,028,196 (13,354,061) 567,608,774 3,420,591,530
Movement for the year ended 31
December 2010
Net profit - - - 596,680,156 - 229,959,208 826,639,364
Other comprehensive income 5(34) - (500,400) - - (65,242) - (565,642)
Profit appropriation
- appropriation to surplus reserves 5(35) - - 28,435,668 (28,435,668) - - -
- profit distribution to equity owners 5(36) - - - (209,548,212) - (229,959,208) (439,507,420)
Balance at 31 December 2010 644,763,730 144,909,755 383,570,404 2,079,724,472 (13,419,303) 567,608,774 3,807,157,832
Balance at 1 January 2011 644,763,730 144,909,755 383,570,404 2,079,724,472 (13,419,303) 567,608,774 3,807,157,832
Movement for the six months ended
June 30 2011
Net profit - - - 258,357,428 - 78,147,260 336,504,688
Other comprehensive income 5(34) - (934,800) - - - - (934,800)
Input and reduced capital of owners
-Input capital of owners - - - - - 67,500,000 67,500,000
Profit appropriation
- appropriation to surplus reserves 5(35) - - 38,122,001 (38,122,001) - - -
- profit distribution to equity owners 5(36) - - - (298,525,607) - - (298,525,607)
Others 25,650,000 - （1,210,000） - - 24,440,000
Balance at 30 June 2011 644,763,730 169,624,955 421,692,405 2,000,224,292 (13,419,303) 713,256,034 3,936,142,113
The accompanying notes form an integral part of these financial statements.
-5-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN OWNERS’ EQUITY
For The Six Months Ended 30 June 2011
(All amounts in RMB Yuan unless otherwise stated)
[English translation for reference only]
Items Notes Share capital Capital surplus Surplus reserves Undistributed profits Total owners' equity
Balance at 1 January 2010 644,763,730 154,606,428 355,134,736 431,538,411 1,586,043,305
Movement for the year ended 31 December 2010
Net profit - - - 381,220,010 381,220,010
Other comprehensive income 5(34) - (500,400) - - (500,400)
Profit appropriation -
- appropriation to surplus reserves 5(35) - - 28,435,668 (28,435,668) -
- profit distribution to equity owners 5(36) - - - (209,548,212) (209,548,212)
Balance at 31 December 2010 644,763,730 154,106,028 383,570,404 574,774,541 1,757,214,703
Balance at 1 January 2011 644,763,730 154,106,028 383,570,404 574,774,541 1,757,214,703
Movement for the six months ended June 30 2011
Net profti - - - 2,219,063 2,219,063
Other comprehensive income 5(34) - (934,800) - - (934,800)
Profit appropriation
- appropriation to surplus reserves 5(35) - - 38,122,001 (38,122,001) -
- profit distribution to equity owners 5(36) - - - (298,525,607) (298,525,607)
Balance at 30 June 2011 644,763,730 153,171,228 421,692,405 240,345,996 1,459,973,359
The accompanying notes form an integral part of these financial statements.
-6-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
1. General information
Shenzhen Chiwan Wharf Holdings Limited (the “Company”) was incorporated in September 1982
in Shenzhen, the People’s Republic of China (the “PRC”), by China Nanshan Development (Group)
Ltd (the “Nanshan Group”), and was registered a sino-foreign joint venture enterprise in July 1990.
In January 1993, as approved by the Shenzhen municipal government with document SFBF
(1993)357, the Company was reorganized into a joint stock limited company. In February 1993, the
Company issued, by public offering, 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 in
Shenzhen Stock Exchange in May 1993.
In June 1994, 31,047,000 bonus shares were issued in a proportion of “one bonus share for every
ten shares”. In June, the bonus A shares and bonus B shares held by Nanshan Group were listed
in Shenzhen Stock Exchange. In December 1995, the Company issued additional 40,000,000 B
shares, consequently, the total volume of the Company’s shares rose to 381,517,000.
In June 2004, the directors of the Company resolved to increase the share capital by means of
capitalization of the share premium and capital reserves of the Company to the extent that 3
additional ordinary shares were issued to each shareholder holding 10 shares of the Company.
As the result, the total volume of shares was increased from 381,517,000 to 495,972,100.
In July 2005, again the directors of the Company resolved to increase the share capital by means
of capitalization of the share premium and capital reserves of the Company to the extent that 3
additional ordinary shares were issued to each shareholder holding 10 shares of the Company.
Consequently, the total volume of shares was increased from 495,972,100 to 644, 763, 700.
The Company and its subsidiaries (collectively the “Group”) are principally engaged in the provision
of cargo packing, cargo handling, container terminal, warehousing, land and sea transportation
services.
These consolidated financial statements have been approved for issue by the Board of Directors
on 20 Augest 2011.
2. Significant accounting policies and accounting estimates
(1) Basis of preparation
The Group prepared financial statements in accordance with the Basic Standard and 38 specific
standards of Accounting Standards for Business Enterprises issued by Ministry of Finance of the
PRC on 15 February 2006, Application Guidance of Accounting Standard for Business Enterprises,
Interpretation of Accounting Standards for Business Enterprises and other regulations issued
thereafter (hereafter referred to as “the Accounting Standard for Business Enterprises”, “China
Accounting Standards” or “CAS”), Rules for Preparation Convention of Disclosure of Public
Offering Companies No.15 – General Regulations for Financial Reporting (revised in 2010) by
China Securities Regulatory Commission.
-7-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(2) Statement of compliance with the Accounting Standards for Business Enterprises
The consolidated and the Company’s financial statements for the six months ended 30 June 2011
truly and completely present the financial position as of 30 June 2011 and the operating results,
cash flows and other information for the first half of the year of the Group and Company in
compliance with the Accounting Standards for Business Enterprises.
(3) Accounting year
The Company’s accounting year starts on 1 January and ends on 31 December.
(4) Recording currency
The recording currency is Renminbi (RMB)
(5) Business Combinations
(a) A business combination under common control
The cost of combination and net asset obtained by the combining party shall be measured at their
book value and the difference shall adjust the capital surplus – capital premium. If the balance of
capital premium is not sufficient to be offset, the retained earning shall be adjusted.
The direct expense for the combination shall be booked into current P&L when it happens.
(b) A business combination does not under common control
The cost of combination and net asset obtained by the combining party shall be measured at fair
value on acquisition day. If the cost is higher than the proportion of net assets’ fair value of
combined party at acquisition day the difference shall be recognized as good will. If the cost is
lower, the difference should be booked into current P&L.
The direct expense for the combination shall be booked into current P&L when it happens.
(6) Preparation of consolidated financial statements
The consolidated financial statements comprise the financial statements of the Company and its
subsidiaries.
-8-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(6) Preparation of consolidated financial statements(continued)
Subsidiaries are fully consolidated from the date on which the Group obtains control and are de-
consolidated from the date that such control ceases. For a subsidiary acquired in a business
combination involving enterprises under common control, it is included in the consolidated financial
statements from the date when it, together with the Company, came under common control of the
ultimate controlling party. The portion of the net profits realized before the combination date is
presented separately in the consolidated income statement.
The financial statements of subsidiaries are adjusted in accordance with the accounting policies
and accounting period of the Company during the preparation of the consolidated financial
statements, where the accounting policies and the accounting periods are inconsistent between the
Company and subsidiaries. For subsidiaries acquired from a business combination involving
enterprises not under common control, the individual financial statements of the subsidiaries are
adjusted based on the fair value of the identifiable net assets at the acquisition date.
All significant inter-group balances, transactions and unrealised profits are eliminated in the
consolidated financial statements. The portion of a subsidiary’s equity and the portion of a
subsidiary’s net profits and losses for the period not held by the Company are recognized as
minority interests and presented separately in the consolidated balance sheet within equity and net
profits respectively.
(7) Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents comprise cash in hand,
deposits held at call with bank and short-term and highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.
(8) Foreign currency translation
(a) Transactions and balances
Foreign currency transactions are translated into RMB using the exchange rates prevailing at the
dates of the transactions.
-9-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(8) Foreign currency translation(continued)
(a) Transactions and balances(continued)
At the balance sheet date, monetary items denominated in foreign currency are translated into
RMB using the spot exchange rate at the balance sheet date. Exchange differences arising from
these translations are recognised in profit or loss for the current period, except for those
attributable to foreign currency borrowings that have been taken out specifically for the acquisition
or construction of qualifying assets, which are capitalised as part of the cost of those assets. Non-
monetary items denominated in foreign currency that are measured in terms of historical cost are
translated at the balance sheet date using the spot exchange rate at the date of the transaction.
The effect of exchange rate changes on cash is presented separately in the cash flow statement.
(b) Translation of foreign currency financial statements
The asset and liability items in the balance sheets for overseas businesses are translated at the
spot exchange rate on the balance sheet date. Among the owner’s equity items, the items other
than “undistributed profits” are translated at the spot exchange rate of the transaction date. The
income and expense items in the income statements of overseas businesses are translated at the
spot exchange rate of the transaction date. The differences arising from the above translation are
presented separately in the owner’s equities. The cash flows of overseas businesses are translated
at the spot exchange rate on the date of the cash flows. The effect of exchange rate changes on
cash is presented separately in the cash flow statement.
(9) Financial instruments
(a) Financial assets
(i) Classification of financial assets
Financial assets are classified into the following categories at initial recognition: financial assets at
fair value through profit or loss, loans and receivables, available-for-sale financial assets and held-
to-maturity investments. The classification of financial assets depends on the Group’s intention and
ability to hold the financial assets.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include financial assets held for the purpose of
selling in the short term, which are presented as financial assets held for trading on the balance
sheet.
- 10 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(9) Financial instruments (continued)
(i) Classification of financial assets(continued)
Receivables
Receivables are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are either designated in
this category or not classified in any of the other categories at initial recognition. Available-for-sale
financial assets are included in other current assets in the balance sheet if management intends to
dispose of them within 12 months of the balance sheet date.
Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed maturity and fixed or
determinable payments that management has the positive intention and ability to hold to maturity.
Held-to-maturity investments with maturities over 12 months when the investments were made but
are due within 12 months at the balance sheet date are included in current portion of non-current
assets; held-to maturity investments with maturities no more than 12 months when the investments
were made are included in other current assets.
(ii) Recognition and measurement
Financial assets are recognised at fair value on the balance sheet when the Group becomes a
party to the contractual provisions of the financial instrument. In the case of financial assets at fair
value through profit or loss, the related transaction costs occurred at the time of acquisition is
recognised in profit or loss for the current period. For other financial assets, transaction costs that
are attributable to the acquisition of the financial assets are included in their initial recognition
amounts. Financial assets are derecognised when the contractual rights to receive the cash flows
from the financial assets have expired, or all substantial risks and rewards of ownership of the
financial assets have been transferred.
Financial assets at fair value through profit or loss and available-for-sale financial assets are
subsequently measured at fair value. Investments in equity instruments are measured at cost when
they do not have a quoted market price in an active market and whose fair value cannot be reliably
measured. Receivables and held-to-maturity investments are measured at amortised cost using the
effective interest method.
- 11 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(9) Financial instruments (continued)
(ii) Recognition and measurement (continued)
A gain or loss arising from a change in the fair value of financial assets at fair value through profit
or loss is recognised in profit or loss. Interests and cash dividends received during the period in
which such financial assets are held, as well as the gains or losses arising from the disposal of the
assets are recognised in profit or loss for the current period.
A gain or loss arising from a change in fair value of an available-for-sale financial asset is
recognised directly in equity, except for impairment losses and foreign exchange gains and losses
arising from the translation of monetary financial assets. When such financial asset is derecognised,
the cumulative gain or loss previously recognised in equity is recognised in profit or loss for the
current period. Interests on available-for-sale investments in debt instruments are calculated using
the effective interest method during the period in which such investments are held and cash
dividends declared by the investee on available-for-sale investments in equity instruments are
recognised as investment income in profit or loss.
(iii) Impairment of financial assets
The Group assesses the carrying amount of a financial asset other than that at fair value through
profit or loss at each balance sheet date. If there is objective evidence that the financial asset is
impaired, the Group shall determine the amount of any impairment loss.
If an impairment loss on a financial asset carried at amortised cost has been incurred, the amount
of loss is measured as the difference between the asset’s carrying amount and the present value of
estimated future cash flows (excluding future credit losses that have not been incurred). If there is
objective evidence that the value of the financial asset recovered and the recovery is related
objectively to an event occurring after the impairment was recognised, the previously recognised
impairment loss is reversed and the amount of reversal is recognised in profit or loss.
In the case of a significant or prolonged decline in the fair value of an available-for-sale financial
asset, the cumulative loss arising from the decline in fair value that had been recognised directly in
equity is removed from equity and recognised in impairment loss. For an investment in debt
instrument classified as available-for-sale on which impairment losses have been recognised, if, in
a subsequent period, its fair value increases and the increase can be objectively related to an
event occurring after the impairment loss was recognised in profit or loss, the previously
recognised impairment loss is reversed and recognised in profit or loss for the current period. For
an investment in an equity instrument classified as available-for-sale on which impairment losses
have been recognised, if, in a subsequent period, its fair value increases and the increase can be
objectively related to an event occurring after the impairment loss was recognised in profit or loss,
the previously recognised impairment loss is reversed and directly recognised in equity.
- 12 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(9) Financial instruments (continued)
(iv) Derecognition of financial assets
Financial assets are derecognised when: i) the contractual rights to receive the cash flows from the
financial assets have expired; or ii) all substantial risks and rewards of ownership of the financial
assets have been transferred; or iii) the control over the financial asset has been waived even if the
Group does not transfer or retain nearly all of the risks and rewards relating to the ownership of a
financial asset.
On derecognition of a financial asset, the difference between the carrying amount and the
aggregate of consideration received and the accumulative amount of the changes of fair value
originally recorded in the owner’s equity, is recognised in the income statement.
(b) Financial liabilities
Financial liabilities are classified into the following categories at initial recognition: the financial
liabilities at fair value through profit or loss and other financial liabilities. The financial liabilities in the
Group mainly comprise other financial liabilities, including payables and borrowings.
Payables comprise accounts payable and other payables, which are recognised initially at fair
value and measured subsequently at amortised cost using the effective interest method. Accounts
payable are classified as current liabilities if payment is due within one year or less. If not, they are
presented as non-current liabilities.
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently
carried at amortised costs using the effective interest method.
Other financial liabilities are classified as current liabilities if they mature within one year (one year
included); others are classified as noncurrent liabilities; long-term borrowings due for repayment
within one year since the balance sheet day are classified as current portion of non-current
liabilities.
A financial liability (or a part of financial liability) is derecognised when and only when the obligation
specified in the contract is discharged or cancelled. The difference between the carrying amount of
a financial liability (or a part of financial liability) extinguished and the consideration paid is
recognised in the income statement.
- 13 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(9) Financial instruments (continued)
(c) Determination of fair value of financial instruments
The fair value of a financial instrument that is traded in an active market is determined at the
quoted price in the active market. The fair value of a financial instrument for which the market is not
active is determined by using a valuation technique. Valuation techniques include using recent
market transactions between knowledgeable, willing parties, reference to the current fair value of
another instrument that is substantially the same with this instrument, and discounted cash flow
analysis. When a valuation technique is used to establish the fair value of a financial instrument,
management use observable market data as much as possible and relies as little as possible on
the Group specific inputs.
(10) Receivables
Receivables comprise accounts receivable and other receivables. Accounts receivables arising
from rendering of services are initially recognised at fair value of the contractual payments from the
customer.
(a) The receivables that are individually significant and the provision is individually provided for
Receivables that are individually significant are subject to separate impairment assessment. If
there is objective evidence that the Group will not be able to collect the full amount under the
original terms, a provision for impairment of that receivable is established.
The method for providing bad debt provision of the receivables that are individually significant and
the provision is individually provided for is at the difference between the carrying amount of that
receivable and the present value of its estimated future cash flows.
(b) The receivables that are grouped for providing bad debt provision
Receivables that are not individually significant are grouped on the basis of similar credit risk. The
impairment losses are determined by considering the current conditions and the experience of bad
debt for the groups of receivables with the similar credit risk.
The basis of similar credit risk group: the aging of receivables
Provision by credit risk portfolio – Aging analysis
- 14 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(10) Receivables(continued)
Aging analysis method for the bad debt provision for the groups of receivables
Provision for Provision for other
receivables (%) receivables (%)
Within 1 year 0 0
1 to 2 years 0-10 0-10
2 to 3 years 0-30 0-30
3 to 4 years 0-60 0-60
4 to 5 years 0-60 0-60
Over 5 years 50-100 50-100
(c) The receivables that are not individually significant but the provision is individually provided for
The reason for individually bad debt provision is there is objective evidence that the Group will not
be able to collect the full amount under the original terms. The method for providing the bad debt
provision is based on the difference between the carrying amount of that receivable and the
present value of its estimated future cash flows.
(d) When the Group transfers the accounts receivable to financial institutions without recourse, the
difference between proceeds derived from the transaction, net of the carrying amounts of the
accounts receivable and relevant taxes is recognized in profit or loss for the current period.
(11) Inventories
(a) Categories
Inventories include spare parts, fuel and low cost consumables, and are presented at the lower of
cost and net realisable value.
(b) Measurement upon issuance
Cost of spare parts and fuel is determined on the weighted average method.
(c) Determination of net realisable value and the method of provisions for impairment of inventories
Provisions for declines in the value of inventories are determined at the carrying value of the
inventories net of their net realisable value. Net realisable value is determined based on the
estimated selling price in the ordinary course of business, less the estimated costs to completion
and estimated costs necessary to make the sale and relevant taxes.
- 15 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(11) Inventories
(d) The Group adopts the perpetual inventory system
(e) Amortisation of low cost consumables
Low cost consumables are expensed upon issuance.
Designated accounting period
(12) Long-term equity investments
Long-term equity investments comprise the Company’s equity investments in its subsidiaries, the
Group’s long-term equity investments in its associates as well as the long-term equity investments
where the Group does not have control, joint control or significant influence over the investees, and
which are not quoted in an active market and whose fair value cannot be reliably measured.
Subsidiaries are all investees over which the Company is able to control. Associates are all
investees that the Group has significant influence on their financial and operating policies.
Investments in subsidiaries are measured using the cost method in the Company’s financial
statements, and adjusted using the equity method when preparing the consolidated financial
statements. Investments in associates are accounted for using the equity method. Other long-term
equity investments where the Group does not have control, joint control or significant influence over
the investee, and which are not quoted in an active market and whose fair value cannot be reliably
measured are accounted for using the cost method.
(a) Determining initial investment cost
Long-term equity investments accounted for using the cost method are measured at the initial
investment cost. Long-term equity investments accounted for using the equity method, where the
initial investment cost exceeds the Group’s share of the fair value of the investee’s identifiable net
assets at the time of acquisition, the investment is initially measured at 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 included in profit or loss for the current period and
the cost of the long-term equity investment is adjusted accordingly.
- 16 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(12) Long-term equity investments (continued)
(b) Subsequent accounting and recognition of profit or loss
For long-term equity investments accounted for using the cost method, investment income is
recognised in profit or loss for the cash dividends or profit declared by the investee.
When using the equity method of accounting, the Group recognised the investment income based
on its share of net profit or loss of the investee. The Group discontinues recognising its share of net
losses of an investee after the carrying amount of the long-term equity investment together with
any long-term interests that, in substance, form part of the investor’s net investment in the investee
are reduced to zero. However, if the Group has obligations for additional losses and the conditions
on recognition of provision are satisfied in accordance with the accounting standards on
contingencies, the Group continues to recognise the investment losses and the provision. For
changes in owner’s equity of the investee other than those arising from its net profit or loss, the
Group record directly in capital surplus its proportion, provided that the Group’s proportion of
shareholding in the investee remains unchanged. The carrying amount of the investment is
reduced by the Group’s share of the profit or cash dividends declared by an investee. The
unrealised profits or losses arising from the intra-group transactions between the Group and its
investees are eliminated to the extent of the Group’s interest in the investees, on the basis of which
the investment gain or losses are recognised. The loss on the intra-group transaction between the
Group and its investees, of which the nature is asset impairment, is recognised in full amount, and
the relevant unrealised gain or loss is not allowed to be eliminated.
(c) Determining control, joint control, significant influence over investees
Control means that the investor has the power to govern the financial and operating policies so as
to obtain benefits from their operating activities. The existence and effect of potential voting rights
(including that derived from the convertible bonds and warrants that are currently convertible or
exercisable) are considered to determine whether the Group has control over the investee.
Joint control means that the investor has contractual obligation to control a certain economic
activity, while such control only exists when the significant financial and operating policies relating
to that activity are agreed upon by all investors sharing that control.
Significant influence means that the investor has the right to participate in the determination of the
investee’s financial and operating policies, but cannot control or joint control with other parties on
the determination of these policies.
- 17 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(12) Long-term equity investments (continued)
(d) Impairment of long-term equity investments
The carrying amount of long-term equity investments in subsidiaries and associates is reduced to
the recoverable amount when the recoverable amount is less than the carrying amount (Note
2(19)). When the long term investments which are not quoted in an active market and whose fair
value cannot be reliably measured have impairment, the impairment loss is recognised at the
differences between carrying amounts and the present value of future cash flow discounted using
the prevailing market return rate on similar financial assets. Once the impairment loss is recognised,
it is not allowed to be reversed for the value recovered in the subsequent periods.
(13) Investment property
Investment property, including land use rights that have already been leased out and buildings that
held for the purpose of lease and buildings that is being constructed or developed for future use for
leasing, is measured initially at the cost. Subsequent expenditures incurred for an investment
property is included in the cost of the investment property when it is probable that economic
benefits associated with the investment property will flow to the Group and the cost can be reliably
measured, otherwise the expenditure is recognised in income statement in the period in which they
are incurred.
The Group adopts the cost model for subsequent measurement of the investment property.
Buildings and land use rights are depreciated or amortised to allocate the costs of these assets to
their estimated net residual values over their estimated useful lives. The estimated useful lives, the
estimated net residual values expressed as a percentage of cost and the annual depreciation
(amortisation) rates of the investment properties are as follows:
Estimated Annual depreciation
Estimated useful lives residual value (amortization) rate
Buildings 25 - 33 years 10% 2.7% to 3.6%
Land use rights 8 - 38 years - 2.6% to 12.5%
When an investment property is changed to an owner-occupied property, it is transferred to fixed
assets or intangible assets at the date of such change. When an owner-occupied property is
changed to be held to earn rental or for capital appreciation, the fixed asset or intangible asset is
transferred to investment property at the date of such change at the carrying amount of the
property.
The estimated useful life, net residual value of an investment property and the depreciation
(amortisation) method applied are reviewed, and adjusted as appropriate at each financial year end.
- 18 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(13) Investment property (continued)
An investment property is derecognised on disposal or when the investment property is
permanently withdrawn from use and no future economic benefits are expected from its disposal.
The amount of proceeds on sale, transfer, retirement or damage of an investment property less its
carrying amount and related taxes and expenses is recognised in income statement for the current
period.
The carrying amount of investment property is reduced to the recoverable amount when the
recoverable amount is less than the carrying amount (Note 2 (19)).
(14) Fixed assets
(a) Fixed assets recognition and initial measurement
Fixed assets comprise harbor facilities, warehouses, container yards and buildings, machinery and
equipment, motor vehicles, cargo ships and tugboats, and other equipments.
Fixed assets purchased or constructed by the Group are initially measured at cost at the time of
acquisition. Fixed assets contributed by the State-owned shareholders at the incorporation of a
limited company are initially recorded at the valuation amount recognized by the State-owned
assets supervision and administration department.
Subsequent expenditures incurred for a fixed asset are included in the cost of the fixed asset when
it is probable that economic benefits associated with the fixed asset will flow to the Group and its
cost can be reliably measured. The carrying amount of those parts that are replaced is
derecognized and all other subsequent expenditures are recognised in profit or loss in the period in
which it is incurred.
(b) Fixed assets depreciation
Fixed assets are depreciated using the straight-line method to allocate the cost of the assets to
their estimated residual values over their estimated useful lives. For the fixed assets being provided
for impairment loss, the related depreciation charge is prospectively determined based upon the
adjusted carrying amounts over their remaining useful lives.
\
- 19 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(14) Fixed assets (continued)
(c) Fixed assets depreciation
The estimated useful lives, the estimated residual values expressed as a percentage of cost and
the annual depreciation rates are as follows:
Estimated Estimated Annual
useful lives residual value depreciation rate
Harbor facilities 5 - 50 years 10% 1.8%-18%
warehouses, container yards and buildings 5 - 40 years 10% 2.25%-18%
machinery and equipments 5 - 15 years 10% 6%-18%
motor vehicles, cargo ships and tugboats 5 - 20 years 10% 4.5%-18%
other equipments 5 years 10% 18%
The estimated useful life, the estimated net residual value of a fixed asset and the depreciation
method applied to the asset are reviewed, and adjusted as appropriate at least at each financial
year-end.
(d) The carrying amount of fix assets is reduced to the recoverable amount when the recoverable
amount is less than the carrying amount (Note 2(19).
(e) Fixed assets disposal
A fixed asset is derecognized on disposal or when no future economic benefits are expected from
its use or disposal. The amount of proceeds on sale, transfer, retirement or damage of a fixed
asset net of its carrying amount and related taxes and expenses is recognised in profit or loss for
the current period.
(15) Construction in progress
Construction in progress is measured at actual cost. Actual cost comprises construction
costs, ,installation cost, borrowing costs that are eligible for capitalization and other costs
necessary to bring the fixed assets ready for their intended use. Construction in progress is
transferred to fixed assets when the assets are ready for their intended use, and depreciation
begins from the following month. The carrying amount of construction in progress is reduced to the
recoverable amount when the recoverable amount is less than the carrying amount (Note 2(19)).
- 20 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(16) Borrowing costs
The borrowing costs that are directly attributable to the acquisition and construction of a fixed asset
that needs a substantially long period of time of acquisition and construction for its intended use
commence to be capitalised and recorded as part of the cost of the asset when expenditures for
the asset and borrowing costs have been incurred, and the activities relating to the acquisition and
construction that are necessary to prepare the asset for its intended use have commenced. The
capitalisation of borrowing costs ceases when the asset under acquisition or construction becomes
ready for its intended use, the borrowing costs incurred thereafter are recognised in profit or loss
for the current period. Capitalisation of borrowing costs is suspended during periods in which the
acquisition or construction of a fixed asset is interrupted abnormally and the interruption lasts for
more than 3 months, until the acquisition or construction is resumed.
For a borrowing specific for the acquisition, construction or production activities for preparing an
asset eligible for capitalisation, the to-be-capitalised borrowing costs shall be determined according
to the actual borrowing costs incurred less any income earned on the unused borrowing fund as a
deposit in the bank or as a temporary investment.
For the other borrowings related to acquisition, construction and production of a qualifying asset,
the amount of to-be-capitalised borrowing costs shall be the lower of the actual borrowing costs
incurred and the amount of qualifying asset not financed by specific borrowings multiplying
capitalisation rate. The capitalisation rate is the weighted average interest rate of these borrowings.
(17) Intangible assets
Intangible assets including land use rights, coastal line use rights and computer software are
measured at actual cost. Fixed assets contributed by the state-owned shareholders at the
incorporation of a limited company are initially recorded at the valuation amount recognized by the
state-owned assets supervision and administration department.
(a) Land use rights
Land use rights are amortised on the straight-line basis over their estimated useful lives of 20 - 50
years. If the purchase costs of land use rights and attached buildings cannot be reliably allocated
between the land use rights and buildings, for the purchase costs are recognised as fixed assets.
(b) Coastal line use rights
Coastal line use rights are amortised on the straight-line basis over periods of 5 - 50 years.
(c) Computer software
Computer software is amortised on a straight-line basis over periods of 3 - 5 years.
- 21 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(17) Intangible assets (continued)
(d) Periodical review of useful life and amortisation method
For an intangible asset with a finite useful life, review and adjustment on useful life and
amortization method are performed at each year-end.
A provision for impairment and an impairment loss are recognized when the recoverable amount of
an intangible assets is less than its carrying amount (2(19)).
(18) Long-term prepaid expenses
Long-term prepaid expenses include the expenditure for improvements to fixed assets under
operating lease and other prepayments incurred but should be borne by the current and
subsequent periods and amortised over more than one year. Long-term prepaid expenses are
amortised on the straight-line basis over the expected beneficial period and are presented at cost
net of accumulated amortisation.
(19) Impairment of long-term assets
Fixed assets, construction in progress, intangible assets with finite useful lives, investment
properties measured using the cost model and long-term equity investments in subsidiaries, joint
ventures and associates are tested for impairment if there is any indication that an asset may be
impaired at the balance date. If the result of the impairment test indicates that the recoverable
amount of the asset is less than its carrying amount, a provision for impairment and an impairment
loss are recognised for the amount by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and the
present value of the future cash flows expected to be derived from the asset. A provision for asset
Impairment is determined and recognised on an individual asset basis. If it is not possible to
estimate the recoverable amount of an individual asset, the recoverable amount of the group of
assets to which the asset belongs is determined. A group of assets is the smallest group of assets
that is able to generate independent cash inflows.
Separately recognised goodwill is tested at least annually for impairment, irrespective of whether
there is any indication that the asset may be impaired. During the test, the carrying value of
goodwill is allocated to the related asset group or groups of asset group which is expected to
benefit from the synergies of the business combination. If the result of the test indicates that the
recoverable amount of an asset group or groups of asset group including the goodwill allocated is
lower than its carrying amount, the corresponding impairment loss is recognized. The impairment
loss is first deducted from the carrying amount of goodwill allocated to the asset group or groups of
asset group, and then deducted from the carrying amount of the remaining assets of the asset
group or groups of asset group pro rata with goodwill.
- 22 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(19) Impairment of long-term assets (continued)
Once the asset impairment loss mentioned above is recognised, it is not allowed to be reversed
even if the value is recovered in the subsequent periods.
(20) Employee benefits
Employee benefits mainly include wages or salaries, bonuses, allowances and subsidies, staff
welfare, social security contributions, housing funds, labour union funds, employee education funds
and other expenditures incurred in exchange for service rendered by employees.
The Group has established a pension scheme for employees which is a defined contribution plan.
The Group pays contributions at 5.5% to 6% of employees’ salary into the plan. The Group has no
further obligations once the contributions have been paid. The contributions are recognised as
employee benefit expense when they are due. The pension assets are hold by a trustee and are
managed separately from the Group’s assets.
(21) Profit distribution
Proposed profit distribution is recognised as a liability in the period in which it is approved by the
shareholders’ meeting.
(22) Revenue recognition
The amount of revenue is determined in accordance with the fair value of the consideration
received or receivable for services in the ordinary course of the Group’s activities. Revenue is
shown net of value-added tax, rebates, discounts and returns.
Revenue is recognised when the economic benefits associated with the transaction will flow to the
Group, the relevant revenue can be reliably measured and specific revenue recognition criteria
have been met for each of the Group’s activities as described below:
(a) Rendering of services
The Group provides loading/unloading, transportation, logistic agency and other related harbor
services to external customers. Revenue arising from provision of services is re ognised when
services are completed and the amount of revenue and cost can be reliably measured .
- 23 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(22) Revenue recognition (continued)
(b) Transfer of asset use rights
Interest income is recognised on a time-proportion basis using the effective interest method.
Lease income from an operating lease is recognised on a straight-line basis over the period of the
lease.
(23) Government subsidies
Government subsidy means the monetary or non-monetary assets obtained freely by an enterprise
from the government, including tax returns, financial subsidies.
Government subsidy is recognized unless the additional condition can be met and the subsidy can
be received by the corporation. If the government subsidy is a monetary asset, it will be measured
in the light of the received or receivable amount, if the government subsidy is a non-monetary asset,
it shall be measured at its fair value. If its fair value cannot be obtained in a reliable way, it will be
measured at its nominal amount.
The government subsidies pertinent to assets will be recognized as other non-current debt-
deferred income, equally amortized within the useful lives of the relevant assets and recognized as
profit and loss at the same time. The government subsidies measured at their nominal amounts will
be directly recognized as profit and loss in the current period.
The government subsidies pertinent to incomes, those subsidies used for compensating related
future expenses or losses will be recognized as deferred income and recognized as profit and loss
during the period when the relevant expenses are recognized; those subsidies used for
compensating related expenses or losses already existed will be directly recognized as income or
cost in the current period.
(24) Deferred revenue
Deferred revenue is the advance from customers which should be amortised on a straight-line
basis over the expected beneficial period and presented at cost net of accumulated amortization.
- 24 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(25) Deferred tax assets and deferred tax liabilities
Deferred tax assets and deferred tax liabilities are calculated and recognised based on the
differences arising between the tax base of assets and liabilities and their carrying amount
(temporary differences). Deferred tax asset is recognized for the deductible losses that can be
carried forward to subsequent years for deduction of the taxable profit in accordance with the tax
law. No deferred tax liability is recognised for a temporary difference arising from the initial
recognition of goodwill. No deferred tax asset or deferred tax liability is recognized for the
temporary differences resulting from the initial recognition of assets or liabilities due to a
transaction other than a business combination, which affects neither accounting profit nor taxable
profit (or deductible loss) At the balance sheet date, deferred tax assets and deferred tax liabilities
are measured at the tax rates that are expected to apply to the period when the asset is realised or
the liability is settled.
Deferred tax assets are only recognised for deductible temporary differences, deductible losses
and tax credits to the extent that it is probable that taxable profit will be available in the future
against which the deductible temporary differences, deductible losses and tax credits can be
utilised.
Deferred tax liabilities are recognised for temporary differences arising from investments in joint
ventures, subsidiaries and associates, 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. When it is probable that the temporary differences arising from
investments in subsidiaries, joint ventures and associates will be reversed in the foreseeable
future and that the taxable profit will be available in the future against which the temporary
differences can be utilized, the corresponding deferred tax assets are recognized.
Deferred tax assets and liabilities are offset and presented on net basis when:
The deferred taxes are relate to the same taxable entity and same taxation authority, and;
That taxable entity has a legally enforceable right to offset current tax assets against current
tax liabilities.
(26) Leases
A finance lease is a lease that transfers substantially all the risks and rewards incidental to
ownership of an asset. An operating lease is a lease other than a finance lease.
Lease payments under an operating lease are recognised on a straight-line basis over the period of
the lease, and are either capitalized as part of the cost of related assets, or charged as an expense
for the current period.
- 25 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
2 Significant accounting policies and accounting estimates (continued)
(27) Held for sale and discontinuing operations
Non-current asset or components of the corporation which meet all three conditions below can be
classified as hold for sale: (1) The agreement of disposal is made. (2) The contract which can not
withdraw is signed by both corporation and the transferee. (3) The transfer will be completed with in
a year.
A non-current asset classified as an asset held for sale is presented as other current asset at the
lower of the carrying amount and the fair value less costs to sell. Any excess of the carrying
amount over the fair value less the costs to sell is recognised as asset impairment loss.
Discontinuing operations are disposed or classified as hold for sale components which can be
respectively identified from both operating and preparing the financial statements of the corporation.
(28) Segment information
The Group identifies operating segments based on the internal organization structure,
management requirement and internal reporting, then discloses segment information of reportable
segments which is based on operating segments.
An operating segment is the component of the Group that all of the following conditions are
satisfied: (1) that component can earn revenues and incur expenses from ordinary activities; (2)
whose operating results are regularly reviewed by the Group’s management in order to make
decisions about resources being allocated to the segment and assess its performance, and (3) for
which the information of financial position, operating results and cash flows are available to the
Group. If two or more operating segments have similar economic characteristics, and certain
conditions are satisfied, they may be aggregated into one operating segment.
(29) Critical accounting estimates and judgments
The Group continually evaluates the critical accounting estimates and key judgements applied
based on historical experience and other factors, including expectations of future events that are
believed to be reasonable under the circumstances.
There are no critical accounting estimates or key judgments of the Group in current year that will
cause significant adjustments to the book value of assets and liabilities in next year.
- 26 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
3 Taxation
The types and rates of taxes applicable to the Group are set out below.
Type Taxable basis Tax rate
Enterprise income tax Taxable income 16.5%, 24% and 25%
Value added tax (“VAT”) Taxable income from vehicle maintenance and utilities supplies on 17%
ships in shore (tax payable represents output VAT calculated using
the taxable sales amount multiplied by the effective tax rate less
deductible input VAT)
Taxable income from sales of scraps 3%
Taxable income from transfer of fixed asset (tax inclusive) 4% (levied by half)
Business tax Taxable loading/unloading and transportation income 3%
Taxable warehousing, logistic agency and rental income 5%
Urban maintenance and VAT and Business tax paid 7%
construction tax
Education surplus VAT and Business tax paid 3%and2%
The applicable enterprise income tax rate for the Company and the subsidiaries located in
Shenzhen Special Economic Zone had been 15%. Under the new CIT Law, the CIT income tax
rate applicable to the Company and these subsidiaries will increase gradually to 25% within 5 years
from 2009 to 2012. The applicable income tax rate for 2011 is 24%. (2010: 22%)
The applicable enterprise income tax rate for the subsidiaries located in Dongguan city is 25%.
(2010: 25%)
Chiwan Wharf Holdings (H.K.) Limited (the “WHK”) and Chiwan Shipping (H.K.) Company Limited
are subject to Hong Kong CIT income tax rate at 16.5% (2010: 16.5%).
- 27 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
3 Taxation (continued)
For the six months ended 30 June 2011, several subsidiaries of the Company are still in the tax
holiday of “5 year exemption and 5 year half reduction”. The details are set out below.
(a) The profit derived from berth #12 of CCT is entitled to full exemption from income tax for five years
commencing from its first profit making year and a 50% exemption for the following five years. 2011
is the eighth profit-making year of berth #12, CIT has been provided at a rate of 12% (2010: 11%).
(b) The profit derived from berth #13 of CCT is entitled to full exemption from income tax for five years
commencing from its first profit making year and a 50% exemption for the following five years when
certain requirement met. 2011 is the seventh profit-making year of berth #13, CIT has been
provided at a rate of 12% (2010: 11%).
- 28 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
4. Business combination and consolidation of financial statements
(1) Particulars of the subsidiaries
(a) Subsidiaries established or invested by the Group
Registered capital
Type of Place of Nature of Legal Organization
Full name of investees (in ten thousand Yuan Principal activities Type of enterprise
subsidiaries registration business representatives code
unless otherwise stated)
Shenzhen Chiwan International Freight Agency Domestically-funded
Company Limited Direct Shenzhen, PRC Logistics 550 Shipping agency service enterprise Qu Jiandong 61885111-4
Shenzhen Chiwan Terminal Company Limited Direct and Shenzhen, PRC Logistics Domestically-funded
indirect
5,000 Port services enterprise Zhao Qiang 19231989-1
Shenzhen Chiwan Trains-Grains Terminal Direct and Shenzhen, PRC Logistics Warehousing of grains Chinese-Foreign equity
Company Limited indirect 4,500 joint venture Zhang Jianguo 61893398-8
Chiwan Wharf Holdings (H.K.) Limited Direct Hong Kong SAR, Investments Shipping agency service Foreign company
PRC HKD1,000,000 NA NA
Dongguan Chiwan Wharf Company Limited Direct and Dongguan, PRC Logistics Port services, warehousing and other logistic Chinese-Foreign equity
indirect 45,000 services joint venture Zhang Ning 79123972-X
Dongguan Chiwan Terminal Company Limited Direct and Dongguan, PRC Logistics Port services, warehousing and other logistic Chinese-Foreign equity
indirect 30,000 services joint venture Wang Fen 67307267-4
Hong Kong SAR, Investments
Hinwin Development Limited Indirect PRC HKD10,000 NA Foreign company NA NA
British Virgin
Grossalan Investments Limited Indirect Islands Investments USD 1 Investment holding Foreign company NA NA
- 29 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
4 Business combination and consolidation of financial statements (continued)
(1) Particulars of the subsidiaries (continued)
(a) Subsidiaries established or invested by the Group (continued)
Substantial net investment on the
Name of subsidiaries Year end actual investment subsidiaries recorded in other items Interest held (%) Voting right held (%) Consolidated
Shenzhen Chiwan International Freight Agency 5,500,000 - 100% 100% Yes
Company Limited
Shenzhen Chiwan Terminal Company Limited 50,000,000 - 100% 100% Yes
Shenzhen Chiwan Trains-Grains Terminal 45,000,000 - 100% 100% Yes
Company Limited
Chiwan Wharf Holdings (H.K.) Limited 1,070,000 11,004,285 100% 100% Yes
Dongguan Chiwan Wharf Company Limited 382,500,000 - 85% 85% Yes
Dongguan Chiwan Terminal Company Limited 300,000,000 - 100% 100% Yes
Hinwin Development Limited 6,278,500 94,014,181 100% 100% Yes
Grossalan Investments Limited 8 - 100% 100% Yes
790,348,508 105,018,466
- 30 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
4 Business combination and consolidation of financial statements (continued)
(1) Particulars of the subsidiaries (continued)
(b) Subsidiaries acquired under common control
Registered capital
Full name of investees Type of Nature of (in ten thousand Yuan unless Legal
subsidiaries Place of registration business otherwise stated) Principal activities Type of enterprise representatives Organization code
Shenzhen Chiwan Harbour Container Direct and indirect Shenzhen, PRC Logistics 28,820 Container handling and Chinese-Foreign
Company Limited other port services Equity joint venture Zhang Ning 61881729-0
Shenzhen Chiwan Transportation Direct and indirect Shenzhen, PRC Logistics 1,500 container transportation, Chinese-Foreign
Company Limited vehicle and port machinery Equity joint venture
maintenance Zhang Ning 61883349-3
Chiwan Container Terminal Company Direct and indirect Shenzhen, PRC Logistics USD 95,300,000 Container handling and Chinese-Foreign Zheng
Limited other port services Equity joint venture Shaoping 61881700-4
Shenzhen Chiwan Shipping and Direct and indirect Shenzhen, PRC Logistics 2,400 Cargo shipping Chinese-Foreign
Transportation Company Limited Equity joint venture Zhang Ning 61881638-6
Chiwan Shipping (H.K.) Company Indirect Hong Kong, PRC Logistics HKD 800,000 Shipping agency service Foreign company
Limited NA NA
- 31 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
4 Business combination and consolidation of financial statements (continued)
(1) Particulars of the subsidiaries (continued)
(b) Subsidiaries acquired under common control (continued)
Substantial net
investment on the Reversal of minority profit /
Year end actual subsidiaries recorded in Minority equity loss interest from minority
Name of subsidiaries investment other items Interest held (%) Voting right held (%) Consolidated interest equity interest
Shenzhen Chiwan Harbour Container Company
Limited 250,920,000 - 100% 100% Yes - -
Shenzhen Chiwan Transportation Company
Limited 7,000,000 19 100% 100% Yes - -
Chiwan Container Terminal Company Limited 485,990,004 - 55% 55% Yes 645,756,034 -
Shenzhen Chiwan Shipping and Transportation
Company Limited 24,000,000 - 100% 100% Yes - -
Chiwan Shipping (H.K.) Company Limited 856,000 - 100% 100% Yes - -
Shenzhen Chiwan Harbour Container Company
Limited
768,766,004 19 645,756,034 -
All above subsidiaries and the Company had been under common control by Nanshan Group before and after the acquisition.
- 32 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
4 Business combination and consolidation of financial statements (continued)
(1) Particulars of the subsidiaries (continued)
(c) Subsidiaries acquired not under common control :
Place of Registered
registration capital Principal activities Interest held (%) Voting right held (%)
Hong Kong SAR,
Hinwin Development Limited PRC HKD10,000 NA 100% 100%
(2) Entities newly or no longer included in the consolidation scope
Entities newly in the consolidation scope is Hinwin Development Limited.
(3) There is no loss of subsidiary due to disposal of shares and loss of control during the year.
(4) Exchange rates adopted on the translation of major financial statement items of the foreign
operating entities
Balance Sheet Item Revenue, expense
30 June 2011 31 December 2010 and cash flow item
Chiwan Shipping (H.K.) 1HKD = 0.85RMB 1HKD = 0.85RMB Current exchange rate of the
Company Limited transaction
Grossalan Investments Limited 1HKD = 0.85RMB 1HKD = 0.85RMB Current exchange rate of the
transaction
- 33 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements
(1) Cash at bank and on hand
30 June 2011 31 December 2010
Original Exchang RMB Original Exchang RMB
currency e rate equivalent currency e rate equivalent
Cash on hand-
RMB - - 12,334 - - 8,829
HKD 1,861 0.85 1,582 2,557 0.85 2,174
USD 71 6.62 470 71 6.62 470
14,386 11,473
Cash at bank-
RMB - - 747,524,500 - - 605,086,621
HKD 165,607,468 0.85 140,766,348 196,006,858 0.85 166,605,829
USD 4,981,897 6.62 32,980,158 1,336,616 6.62 8,848,399
921,271,006 780,540,849
Other cash balances-
RMB - - 1,885,913 - - 1,066,932
HKD 16,847 0.85 14,320 116,847 0.85 99,320
USD - 6.62 - 228 6.62 1,509
1,900,233 1,167,761
923,185,625 781,720,083
(2) Notes receivable
30 June 2011 31 December 2010
Bank acceptance notes - 4,640,000
(3) Interest receivable
31 December Current year Current year 30 June
2010 additions decreases
2011
Interest receivables 1,318,202 535,000 (1,729,869) 123,333
There was no interest overdue as at 30 June 2011 and 31 December 2010.
- 34 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(4) Accounts receivable
30 June 2011 31 December 2010
Accounts receivable 246,607,337 179,822,749
Less: provision for bad debts （49,994） (49,994)
246,557,343 179,772,755
(a) The ageing of accounts receivable is analysed below:
30 June 2011 31 December 2010
Within 1 year 246,524,014 179,739,426
Over 3 year 83,323 83,323
246,607,337 179,822,749
(b) Accounts receivable are analysed by categories as follows:
30 June 2011 31 December 2010
Book amount Provision for bad debts Book amount Provision for bad debts
% of total Provision for % of % of total Provision for % of
Amount balance bad debts balance Amount balance bad debts balance
Receivables that are
individually significant 171,126,329 69% - - 135,313,207 75% - -
Others 75,481,008 31% (49,994) 0% 44,509,542 25% (49,994) 0%
246,607,337 100% (49,994) 0% 179,822,749 100% (49,994) 0%
The management classified the five largest accounts receivable as “receivables that are
individually significant”.
(c) As at 30 June 2011, receivables that are individually significant and impaired are analysed as
follows:
% of the balance
Provision for bad and reason of
Amount debt impairment
Customer A 74,288,026 - Not applicable
Customer B 43,273,723 - Not applicable
Customer C 22,710,438 - Not applicable
Customer D 21,112,381 - Not applicable
Customer E 9,741,761 - Not applicable
171,126,329 -
- 35 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(4) Accounts receivable (continued)
(d) The aging analysis of the receivables that are grouped and impaired is as follows:
30 June 2011 31 December 2010
Book amount Provision for bad debts Book amount Provision for bad debts
% of total Provision for % of % of total Provision for % of
Amount balance bad debts balance Amount balance bad debts balance
Within 1 year
75,397,685 31% - 44,426,219 25% - -
Over 3 years 83,323 0% (49,994) 60% 83,323 0% (49,994) 60%
75,481,008 31% (49,994) 0% 44,509,542 25% (49,994) 0%
(e) As at 30 June 2011, no balances included in above accounts receivable are due from the
shareholders of the Company who hold over 5% shares with voting rights (31 December 2010:
Nil).
(f) As at 30 June 2011, the Group’s five largest accounts receivable balances are analysed as
follows:
Relationship % of total accounts
with the Group Amount Duration receivable balance
Within 1 year and
Customer A Third party 74,288,026 1 to 2 years 30%
Customer B Third party 43,273,723 Within 1 year 17%
Customer C Third party 22,710,438 Within 1 year 9%
Customer D Third party 21,112,381 Within 1 year 9%
Customer E Third party 9,741,761 Within 1 year 4%
171,126,329 69%
- 36 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(4) Accounts receivable (continued)
(g) Accounts receivable due from related parties are analysed as follows：
30 June 2011 31 December 2010
Provision Provision
Relationship with the % of total for bad % of total for bad
Group Amount balance debts Amount balance debts
China Merchants Maritime Notes7(4) 1,655,720 0.7% - 344,900 0.2% -
Logistics(Shenzhen)Co.,Ltd(“
CMML”)
Shenzhen Southsea Grains Notes7(4) 1,107,347 0.4% - 110,521 0.1% -
Industries Limited (“Southsea
Grains”)
CPSB Notes7(4) 1,050,490 0.4% -
Notes7(4)
Shenzhen Mawan Port Co., Ltd. 1,017,088 0.4% - 998,942 0.6% -
(“SMP”)
Notes7(4)
Shenzhen Mawan Wharf Co, 413,293 0.2% - 397,090 0.2% -
Ltd.(“SMW”)
Notes7(4)
Shekou Container Terminals 107,050 0.1% - 907,600 0.5% -
Limited
Notes7(4)
COCL 50,000 0.0% - - - -
Notes7(4)
Haiqin Engineering 29,040 0.0% - - - -
Notes7(4)
Nantian Oilmills 9,519 0.0% - 562,957 0.3% -
5,439,547 2.2% - 3,322,010 1.9% -
(h) The following accounts receivable are denominated in foreign currencies:
30 June 2011 31 December 2010
Original Exchang RMB Original Exchang RMB
currency e rate equivalent currency e rate equivalent
USD 5,615,833 6.62 37,176,814 4,025,498 6.62 26,648,794
HKD 1,638,811 0.85 1,392,989 1,551,068 0.85 1,318,408
38,569,803 27,967,202
- 37 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(5) Other receivables
30 June 2011 31 December 2010
Current accounts with counterparties 50,304,853 49,746,197
Staff advances 3,063,415 1,066,432
Deposits 3,256,176 2,427,356
Others 166,060 736,021
56,790,504 53,976,006
Less: Provision for bad debts (1,210,645) (1,210,645)
55,579,859 52,765,361
(a) The ageing of other receivables is analysed below:
30 June 2011 31 December 2010
Within 1 year 54,168,267 52,147,049
1 to 2 years 1,163,858 158,164
2 to 3 years 444,742 418,316
3 to 4 years 428,694 475,805
4 to 5 years - 130,563
Over 5 years 584,943 646,109
56,790,504 53,976,006
(b) Other receivables are analysed by categories as follows:
30 June 2011 31 December 2010
Book amount Provision for bad debts Book amount Provision for bad debts
% of total Provision for % of % of total Provision for % of
Amount balance bad debts balance Amount balance bad debts balance
Receivables that are
individually significant
and individually provided
for bad debt 47,066,017 83% (874,000) 1.9% 47,492,149 88% (520,000) 1.1%
Receivables that are
grouped and provided for
bad debt 9,724,487 17% (336,645) 3.5% 6,483,857 12% (690,645) 10.7%
56,790,504 100% (1,210,645) 2.1% 53,976,006 100% (1,210,645) 2.2%
- 38 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(5) Other receivables (continued)
(c) As at 30 June 2011, the bad debt provision for other receivables that are individually significant
or individually insignificant but subject to separate impairment assessment is made as follows:
Provision for
Book amount bad debts % of balance Reason
Media Port Investments Limited 44,879,120 - - NA
CMML 1,046,897 - - NA
Beijing Tonggang Ltd 520,000 (520,000) 100% (i)
Shenzhen Xuqin Industrial Development Co., The ageing of
Ltd.(“Xuqin”) 320,000 (192,000) 60% other receivables
The ageing of
Petro china（ShenZhen）Oil Products Supply Co.,Ltd 300,000 (162,000) 54% other receivables
47,066,017 (874,000)
(i) As at 30 June 2011 this item aged above 3 years, and the counterparty was already bankrupted.
The Group is of the view that the receivable is fully irrecoverable, thus full provision has been
made for this.
(d) The aging analysis for other receivables that are grouped and provided for bad debt is as
follows:
30 June 2011 31 December 2010
Book amount Provision for bad debts Book amount Provision for bad debts
% of % of
total Provision for % of total Provision for % of
Amount balance bad debts balance Amount balance bad debts balance
Within 1 year 5,718,134 10.0% - - 4,778,114 8.9% - -
1 to 2 years 2,589,487 4.6% (15,816) 0.6% 158,164 0.2% (15,816) 10.0%
2 to 3 years 430,426 0.8% (83,663) 19.4% 418,316 0.8% (83,663) 20.0%
Over 3 years 986,440 1.7% (237,166) 24.0% 1,129,263 2.1% (591,166) 52.3%
9,724,487 17.1% (336,645) 3.5% 6,483,857 12.0% (690,645) 10.7%
(e) As at 30 June 2011, the Group did not have any balances which were due to parties having 5%
or above shareholdings in the Company (31 December 2010: Nil).
- 39 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(5) Other receivables (continued)
(f) As at 30 June 2011, the Group’s five largest other receivables balances are analysed as follows:
% of total
accounts
Relationship with the receivable
Group Amount Duration balance
Associate of the Group
Media Port Investment Limited(i) 44,879,120 Over 3 years 79%
Associate of the Group
CMML 1,046,897 Within 1 year 2%
Beijing Tonggang Ltd Third party 520,000 Over 3 years 1%
Shenzhen Xuqin Industrial Development Co., Controlled by the same
Ltd.(“Xuqin”) parent company 320,000 Over 3 years 1%
Petrochina（ShenZhen）Oil Products Supply Co.,Ltd Third party 300,000 Over 3 years 0%
47,066,017 83%
(i) 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 the “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 incorporate an associated
corporation (Note 5 (10)) Media Port Investments Limited (the “MPIL”) first with equal
percentage of equity held respectively. MPIL then incorporates the abovementioned three joint
ventures together with SSOG, at 60% and 40% equity interest therein respectively. The total
investment by the shareholders in these three Mawan joint ventures amounts to RMB
1,200,000,000.
In 2003, according to the arrangement under the Development Agreement, WHK, a subsidiary
of the Company, provided an interest free shareholder’s loan of HKD 169,815,000 to MPIL, and
MPIL then injected the amount to the three Mawan companies as their paid-in capital. In 2006,
the interest free shareholder’s loan was increased by HKD 39,320,388 and the increment was
paid to the three companies by MPIL as paid-in capital. During year 2010, pursuant to meeting
of board of directors of MPIL, such shareholders’ loans were decided to be partially repaid by
portion according to the operation and funding situation of the Mawan companies. Therefore,
the balance reduced to RMB 44,879,120 as at 30 June 2011 and the group estimated the
receivable will be recovered within one year and recorded it as current asset.
- 40 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(5) Other receivables (continued)
(g) Other receivables due from related parties are analysed as follows:
30 June 2011 31 December 2010
Relationship with % of total % of total
the Group accounts accounts
receivable Provision for receivabl Provision for
Amount s bad debt Amount es bad debt
Media Port Investment Limited Notes7(4) 44,879,120 79.0% - 44,879,120 83.1% -
Notes7(4)
CMML 1,065,147 1.8% - 57,821 0.1% -
Notes7(4)
Xuqin 320,000 0.6% (192,000) 320,000 0.6% (192,000)
Notes7(4)
CPSB 135,622 0.2% - 135,622 0.3% -
Notes7(4)
Shekou Container Terminals
Limited 58,071 0.1% - - - -
Notes7(4)
SMW 40,409 0.1% - 79,083 0.1% -
Notes7(4)
SMP 28,290 0.1% - 20,961 0.1% -
46,526,659 81.9% (192,000) 45,492,607 84.3% (192,000)
(h) The following other receivables are denominated in foreign currencies:
30 June 2011 31 December 2010
Foreign currency Original Exchang RMB Original Exchang RMB
currency e rate equivalent currency e rate equivalent
USD 137,410 6.62 909,654 125,650 6.62 831,801
HKD 470,417 0.85 399,854 196,519 0.85 167,041
1,309,508 998,842
(6) Advance to suppliers
(a) The ageing of advance to suppliers is analysed below:
30 June 2011 31 December 2010
% of total % of total
Amount balance Amount balance
Within 1 year 32,299,796 99.8% 31,256,172 100%
1 to 2 years 75,536 0.2% - -
32,375,332 100% 31,256,172 100%
- 41 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(6) Advance to suppliers (continued)
(b) As at 30 June 2011, the Group’s five largest advance to suppliers balances are analysed as
follows:
Relationship % of total
with the advance to Time of
Group Amount suppliers prepayment Unsettled reason
Relevant goods or services
Tianjin Dredging Co., Ltd Third party 13,740,000 42.4% Year2010 were not provided
Year2011 Relevant goods or services
Huidong construction engineering Co.,
LTD Third party 7,480,141 23.1% were not provided
Relevant goods or services
Wuhan construction first construction
Co., LTD. Of shenzhen branch Third party 6,275,200 19.4% Year2011 were not provided
Year2011 Relevant goods or services
The Shanghai machinery equipment
Co., LTD Third party 2,235,000 6.9% were not provided
The People’s Insurance Company Relevant goods or services
(Group) of China Limited Third party 841,972 2.6% Year2011 were not provided
30,572,313 94.4%
(c) As at 30 June 2011, no balances of advance to suppliers were with related parties (31
December 2010: Nil).
(d) As at 30 June 2011, no balances of advance to suppliers were with related parties (31
December 2010: Nil).
(7) Inventories
(a) Inventories by categories are analysed as follows:
30 June 2011 31 December 2010
Provision for Provision for
declines in the declines in the
value of Net book value of Net book
Cost inventories value Cost inventories value
Spare parts 27,450,930 (3,396,128) 24,054,802 26,001,106 (3,396,128) 22,604,978
Fuel 1,287,014 - 1,287,014 1,281,346 - 1,281,346
Low cost consumables 43,530 - 43,530 2,202 - 2,202
28,781,474 (3,396,128) 25,385,346 27,284,654 (3,396,128) 23,888,526
- 42 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(7) Inventories（continued）
(b) Provision for declines in the value of inventories is analysed as follows:
31 December Current year 30 June 2011
2010 provisions Current year decreases
Reversals Written-off
Spare parts (3,396,128) - - - (3,396,128)
(3,396,128) - - - (3,396,128)
(c) Details about provision for declines in the value of inventories is as follows:
% of current year reversals to
Basis of provision Reason of current year reversals stock year end balance
Net realizable value lower
than the book value of spare
Spare parts parts Not applicable Not applicable
(8) Available-for-sale financial assets
30 June 2011 31 December 2010
Available-for-sale equity investments 5,410,000 6,640,000
Available-for-sale financial asset represented 1,000,000 PRC legal person shares of Jiangsu
Expressway (the “Jiangsu Expressway”) held by the Company. As at 30 June 2011, the market
value of the stocks in Shanghai Stock Exchange per the closing market price of the last trading
day of the first half of the year 2011 was RMB 5,410,000. Fair value change of RMB 934,800
has been debited to capital surplus.
- 43 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(9) Long-term equity investments
30 June 2011 31 December 2010
Joint ventures (a) 779,055,546 763,011,159
Associates (b) 509,714,759 373,001,527
Other long-term equity investment (c) 17,037,500 17,037,500
1,305,807,805 1,153,050,186
Less: Provision for impairment of long-term equity
investments (d) (3,128,300) (3,128,300)
1,302,679,505 1,149,921,886
As at 30 June 2011, the long-term equity investments of the Group were not subject to
restriction on disposal or remittance of return on investments.
- 44 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated and the Company’s financial statements (continued)
(9) Long-term equity investments (continued)
(a) Joint venture
Current year additions / decreases
Provision
for
Cash Provision impairment
Initial Share of net dividends Other Reason of for
made in
Accounting investment 31 December Additional profit or loss of announced by equity 30 June Interest Voting inconsistent interest impairment
method cos 2010 investment associates associates changes 2011 % right % % and voting right balance current year
China Overseas Harbour Equity
Affairs (Laizhou) Co., Ltd * method 749,655,300 763,011,159 - 16,044,387 - - 779,055,546 40% 40% Not applicable - -
* According to the investment agreement with shareholders of COHA and its constitutions, operating and other significant affairs should be effective
after the approval of director from our side, therefore the company is under common control of our company and other shareholders and will be
consolidated as joint venture.
- 45 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated and the Company’s financial statements (continued)
(9) Long-term equity investments (continued)
(b) Associates
Current year additions / decreases
Provision
Cash Provision for
Initial Share of net dividends Other Reason of for impairment
Accounting investment 31 December Additional profit or loss announced by equity 30 June Interest Voting inconsistent interest impairment made in
method cost 2010 investment of associates associates changes 2011 % right % % and voting right balance current year
Shenzhen Cyber-harbour
Network Co., Ltd.(“Cyber Equity
Network”) method 1,875,000 12,869,241 - (296,450) (1,224,863) - 11,347,928 23.16% 23.16% Not applicable - -
Equity
CMML method 80,000,000 66,766,772 95,898,285 291,914 - - 162,956,971 40% 40% Not applicable - -
Equity
MPIL* method 139,932 293,365,514 - 42,044,346 - - 335,409,860 50% 50% Not applicable - -
373,001,527 95,898,285 42,039,810 (1,224,863) - 509,714,759 - -
* The Company held 50% equity in MPIL, but has no control over it. Thus MPIL was treated as an associate of the Company. As stated in Note 5(9),
the Company held 30% equity of the three Mawan Companies through MPIL.
- 46 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(9) Long-term equity investments (continued)
(c) Other long-term equity investment
Initial Current year Reason of Provision Provision Current year
Accounting investment additions / Interest Voting inconsistent interest for impairment for impairment made declared cash
method cost 31 December 2010 decreases 30 June 2011 % right % % and voting right balance in current year dividend
China Ocean Shipping Agency Cost
(Shenzhen) Company Limited method 13,510,000 13,510,000 - 13,510,000 15% 15% Not applicable - - -
Shenzhen Petro-chemical Industry Cost
(Group) Company Limited. method 3,500,000 3,500,000 - 3,500,000 0.26% 0.26% Not applicable (3,117,800) - -
Guangdong Guang Jian Group Cost
Company Limited method 27,500 27,500 - 27,500 0.02% 0.02% Not applicable (10,500) - -
17,037,500 - 17,037,500 (3,128,300) - -
(d) Provision for impairment of long-term equity investments
Current year Current year
31 December 2010 additions decreases 30 June 2011
Other long-term equity investment
-Shenzhen Petro-chemical Industry (Group) Company Limited (3,117,800) - - (3,117,800)
-Guangdong Guang Jian Group Company Limited (10,500) - - (10,500)
(3,128,300) - - (3,128,300)
- 47 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(10) Investment in joint ventures and associates
Voting right
Interest held held 30 June 2011 For the six Months Ended June 30 2011
Total assets Total liabilities Net assets Operating revenue Net profit / (loss)
Joint venture –
China Overseas Harbour Affairs
(Laizhou) Co., Ltd 40% 40% 1,895,115,164 139,242,538 1,755,872,626 149,222,893 39,788,459
Associates –
China Merchants Holdings (international)
information technology company Ltd 23.16% 23.16% 64,288,693 12,933,127 51,355,566 22,548,876 (1,280,010)
CMML 40% 40% 1,309,030,133 975,865,786 333,164,347 67,665,988 (669,515)
MPIL 50% 50% HKD 481,344,703 HKD 105,892,865 HKD 375,451,838 - HKD (1,300)
All above summary financial information of the joint venture and associates are extracted from their statutory financial statements or management
accounts. The Group has applied the accounting policy of the Group to the results of the joint venture and associates in equity accounting of the share
of results of the joint venture and associates.
- 48 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(11) Investment properties
31 December Current year Current year
2010 additions decreases 30 June 2011
Cost totals 50,658,833 20,013,200 - 70,672,033
Buildings / properties 19,149,868 20,013,200 - 39,163,068
Land use right 31,508,965 - - 31,508,965
Accumulated depreciation /
amortization totals 21,279,289 12,800,487 - 34,079,776
Buildings / properties 8,234,247 12,493,604 - 20,727,851
Land use right 13,045,042 306,883 - 13,351,925
Book value totals 29,379,544 - - 36,592,257
Buildings / properties 10,915,621 - - 18,435,217
Land use right 18,463,923 - - 18,157,040
In the first half of 2011, investment properties depreciation / amortisation was RMB 699,235
(Jan.-Jun 2010: RMB453,552).
In the first half of 2011, the previously self occupied properties with net book value RMB
7,911,949 (Cost of RMB20,013,200) was leased out in current year, and therefore, such assets
were transferred from fixed assets and intangible assets to investment properties at the dates of
transfers.
As at 30 June 2011 and 31 December 2010, none of the investment properties have obtained
Building and Land Ownership Certificate. Please refer to Note 5(14) for the reason and
measures taken by management.
- 49 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(12) Fixed assets
31 December Current year Current year 30 June
2010 additions decreases 2011
Cost totals 4,236,465,750 4,678,032 (23,419,019) 4,217,724,763
Harbor facilities 1,315,344,468 - (17,147,200) 1,298,197,268
Warehouses, container yards and buildings 700,915,560 142,696 (3,342,092) 697,716,164
Machinery and equipments 1,874,315,547 982,769 - 1,875,298,316
Motor vehicles, cargo ships and tugboats 254,367,036 2,664,105 (2,382,800) 254,648,341
Other equipments 91,523,139 888,462 (546,927) 91,864,674
Accumulated depreciation totals 1,522,787,834 80,579,340 (14,695,204) 1,588,671,970
Harbor facilities 227,871,832 12,032,249 (9,537,665) 230,366,416
Warehouses, container yards and buildings 199,385,996 6,615,637 (2,579,400) 203,422,233
Machinery and equipments 907,292,082 51,916,431 - 959,208,513
Motor vehicles, cargo ships and tugboats 120,599,575 7,047,723 (2,142,486) 125,504,812
Other equipments 67,638,349 2,967,300 (435,653) 70,169,996
Net book amount totals 2,713,677,916 - - 2,629,052,793
Harbor facilities 1,087,472,636 - - 1,067,830,852
Warehouses, container yards and buildings 501,529,564 - - 494,293,931
Machinery and equipments 967,023,465 - - 916,089,803
Motor vehicles, cargo ships and tugboats 133,767,461 - - 129,143,529
Other equipments 23,884,790 - - 21,694,678
Provision for impairment loss totals 60,720,001 - - 60,720,001
Harbor facilities - - - -
Warehouses, container yards and
- -
buildings* 60,695,381 60,695,381
Machinery and equipments - - - -
Motor vehicles, cargo ships and tugboats 24,620 - - 24,620
Other equipments - - - -
Net book value totals 2,652,957,915 - 2,568,332,792
Harbor facilities 1,087,472,636 - - 1,067,830,852
Warehouses, container yards and buildings 440,834,183 - - 433,598,550
Machinery and equipments 967,023,465 - - 916,089,803
Motor vehicles, cargo ships and tugboats 133,742,841 - - 129,118,909
Other equipments 23,884,790 - - 21,694,678
- 50 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(12) Fixed assets (continued)
(*) In 2007, the Group planned to relocate part of the general cargo business and facilities to
Dongguan Machong Port, and made certain impairment provision of certain demolition for
related warehouses, container yards and buildings accordingly. As at 30 June 2011, the
management of the Group considered that impairment provision against the fixed assets were
sufficient.
Depreciation charge in the first half of 2011 amounted to RMB 80,579,340(Jan.-Jun.2010: RMB
89,525,942). In the first half of 2011, depreciation expenses of RMB 76,874,148 (Jan.-Jun.2010:
RMB86,107,646) and RMB3,705,192 (Jan.-Jun.2010: RMB 3,418,296) were charged to cost of
revenue and general and administrative expenses, respectively.
Fixed assets amounted to RMB 661,400(Jan.-Jun.2010: RMB46,085,622) were transferred from
construction in progress in the first half of year.
(a) Temporary idle fixed assets
As at 30 June 2011, buildings, machinery and equipment with a net book amount of
approximately RMB 1,940,528 (cost: RMB 28,298,184) were temporary idle (31 December 2010:
net book amount: RMB 1,994,990 (cost: RMB 28,738,184)), due to that management has not
designated their usage. Details are as follows:
Accumulated Net book
Cost depreciation Impairment amount
Warehouses, container yards and buildings 28,298,184 (26,357,656) - 1,940,528
Management is of the view that such idle fixed assets are expected to put into use in the future,
or the recoverable amount is larger than the net book value, thus no impairment provision is
needed.
(b) Fixed assets with ownership certificates to be obtained
As at 30 June 2011, ownership certificates of buildings (“Buildings and Land Ownership
Certificates”) for certain buildings of the Group with net book value of approximately RMB
85,502,427 (cost: RMB 212,427,825) had not yet been obtained (31 December 2010: carrying
amount: RMB 62,095,750 (cost: RMB 128,793,948). For fixed assets with which book value of
RMB 28,360,473(cost: RMB 94,282,156), please refer to Note 5(14) for the reason and
response from management and the rest is on the process of getting ownership certificates.
- 51 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(13) Construction in progress
30 June 2011 31 December 2010
Provision for Net Provision for Net
Book value impairment book value Book value impairment book value
13 berths of the coastline of
extended 144,669,558 - 144,669,558 1,380,600 - 1,380,600
Berth 4#-5#, Machong Port 42,513,499 - 42,513,499 7,222,455 - 7,222,455
Tug 2 27,008,939 - 27,008,939 5,060,834 - 5,060,834
Berth 2#-3#, Machong Port 20,490,332 - 20,490,332 64,129 - 64,129
Quay crane 19,575,000 - 19,575,000 - - -
CTOS System 11,499,413 - 11,499,413 - - -
Others 2,992,439 - 2,992,439 865,498 - 865,498
268,749,180 - 268,749,180 14,593,516 - 14,593,516
- 52 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(13) Construction in progress (continued)
(a) Movement of significant construction in progress
Perce
% of ntage Accumulated Borrowing
Transfer to fixed actual of capitalised cost capitalised Weighted
31 December Current year assets during the cost to compl borrowing In Jan.- average Sources of
Name of projects Budget 2010 additions current year Other reduction 30 June 2011 budget etion cost Jun.2011 interest rate fund
13 berths of the coastline of
Self Funding
extended 373,080,000 1,380,600 143,288,958 - - 144,669,558 39% 39% - - - and loan
Self Funding
Berth 4#-5#, Machong Port 194,965,171 7,222,455 35,291,044 - - 42,513,499 22% 22% - - - and loan
Self Funding
Berth 2#-3#, Machong Port 331,850,000 64,129 20,426,203 - - 20,490,332 6% 6% - - - and loan
Self Funding
Tug 2 38,000,000 5,060,834 21,948,105 - - 27,008,939 71% 71% 228,388 194,609 5.679% and loan
Self Funding
Quay crane 130,500,000 - 19,575,000 - - 19,575,000 15% 15% - - - and loan
Self
CTOS System 31,040,542 - 11,499,413 - - 11,499,413 37% 37% - - - Funding
Self
Others 174,704,988 865,498 2,788,341 (661,400) - 2,992,439 2% 2% - - - Funding
14,593,516 254,817,064 (661,400) - 268,749,180 228,388 194,609
- 53 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(13) Construction in progress (continued))
(b) As at 30 June 2011, the progresses for significant constructions are analysed as below:
Progress Notes
Progress is estimated based on
In survey and site the percentage of injection vs.
13 berths of the coastline of extended preparation budget
Progress is estimated based on
In survey and site the percentage of injection vs.
Berth 4#-5#, Machong Port preparation budget
Progress is estimated based on
In survey and site the percentage of injection vs.
Berth 2#-3#, Machong Port preparation budget
(14) Intangible assets
31 December Current year Current year
2010 additions reductions 30 June 2011
Original cost totals 1,531,257,503 - - 1,531,257,503
Land use rights – prepaid under lease (a) 1,419,159,549 - - 1,419,159,549
Land use rights– purchased 19,343,189 - - 19,343,189
Computer software 19,868,628 - - 19,868,628
Coastal line use rights 72,886,137 - - 72,886,137
Accumulated amortization totals (457,009,684) (19,244,482) - (476,254,166)
Land use rights – prepaid under lease (a) (436,282,005) (16,524,485) - (452,806,490)
Land use rights– purchased (1,456,075) (1,952,356) - (3,408,431)
Computer software (17,763,788) (355,995) - (18,119,783)
Coastal line use rights (1,507,816) (411,646) - (1,919,462)
Net book value totals 1,074,247,819 - - 1,055,003,337
Land use rights – prepaid under lease (a) 982,877,544 - - 966,353,059
Land use rights– purchased 17,887,114 - - 15,934,758
Computer software 2,104,840 - - 1,748,845
Coastal line use rights 71,378,321 - - 70,966,675
In the first half of 2011, the amortisation of intangible assets amounted to RMB 19,244,482 (Jan.-
Jun.2010: RMB 18,880,351).
- 54 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(14) Intangible assets(continued)
(a) Group has leased from Nanshan Group several plots of land with a total area of 752,699 sq.
meters within Chiwan port for a lease term of 20 - 50 years with up-front payments of RMB
684,453,783 made. The lands were injected by Shenzhen Investment Holding Corporation in 1982
as part of the consideration in acquiring the equity interests of Nanshan Group. As the PRC laws
prevailing at that time did not provide for a mechanism for the issuance of official certificates of the
land use rights, Nanshan Group has not obtained the land use right certificates of the leased land
so far.
In June 2003 and September 2004, CCT entered into a land use agreement with Nanshan Group
and leased two plots of land, one with an area of 117,827.2 square meters for 40.5 years and the
other with an area of 171,089.478 square meters for 39 years, at the consideration of RMB
271,002,558 and RMB 444,832,643 respectively. Also no official certificates for such lands were
obtained by Nanshan Group. Correspondingly, the buildings located on such lands have not
obtained relevant real estate certificates.
Nanshan Group issued irrevocable and unconditional letters of indemnity to the Group in March
2001, June 2003 and September 2004, undertaking to indemnify the Group against any losses
arising from or in connection with the leased land use rights.
Based on the situations above, directors of the company believed there is no significant impairment
risk will be caused by the absence of land use right certificate and no significant contingency exist.
The company notice that Nanshan Group is actively settling the historical problem with relevant
government department and it is just not possible to predict exact time of obtaining relevant legal
certificates.
(15) Goodwill
31 December Current year Current year 30 June
2010 additions decreases 2011
CCT (a) 10,858,898 - - 10,858,898
Hinwin Development Limited (b) - 4,385,897 - 4,385,897
10,858,898 4,385,897 - 15,244,795
(a) The goodwill arose from the acquisition of the minority interests in CCT, being the difference of
the additional cost of investment and the Group’s share of the fair value of the identifiable net
assets in CCT.
(b) The goodwill arose from the acquisition of the shareowner in Hinwin Development Limited in
May 2010,being the difference of the cost of investment and the Group’s share of the fair value of
the identifiable net assets in Hinwin Development Limited.
- 55 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(15) Goodwill (continued)
(a) Impairment
Goodwill allocated to the asset groups or compositions of asset groups of the Group at impairment
tests are summarized by operating segments as follows:
30 June 2011 31 December 2010
Loading and unloading business -
Mainland China 10,858,898 10,858,898
The recoverable amount of the asset groups and compositions of asset groups was determined
according to the 5-year budget approved by the management, and calculated per cash flow
forecasts. Estimated growth rate in cash flow above this 5-year was calculated as follows.
Major assumptions applied in the future cash flow forecast method:
Loading and unloading
business – Mainland China
Growth rate 0%
Gross margin 57%
Discount rate 13.2%
The weighted average growth rate that management adopted is consistent with forecasts in
relevant industry analysis reports, and did not exceed the long-term average growth rate of various
services. Management developed a budgeted gross profit margin according to experience and
forecast in market development, as well as the pre-tax interest rate that can reflect the specific risk
of relevant asset group or combination of asset group, as discount rate. Such assumptions are
applied to analyse the asset group or combination of asset group within relevant operating segment.
（16） Long-term prepaid expenses
31 December Current year Current year Other 30 June
2010 additions amortisations decreases 2011
Construction expenditure of Tonggu
sea-route (a) 59,026,284 - (922,285) - 58,103,999
Foresea packing ground 3,624,552 - (604,092) - 3,020,460
Improvement to fixed assets under
operating leases 710,553 1,380,000 (86,771) - 2,003,782
Golf membership 486,800 - (71,489) - 415,311
63,848,189 1,380,000 (1,684,637) - 63,543,552
- 56 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
（16） Long-term prepaid expenses(continued)
(a)In 2007, the 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 accounts of the factors including the function, waterfront length, berthing ship of each porter etc.
The total expenditure of RMB 64,560,000 were 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 live of Tonggu Sea Route starting from 2008 when the Tonggu Sea Route was ready for use.
（17） Other non-current assets
In March 2006, the Company entered into the agreement of “Frame contract for cooperation on
usage of quay and land for berth 2# & 5# at Machong Port in Dongguan” with Dongguan Humen
Port Administration Commission to purchase the use right of 1,200 meters coast line for berth 2# to
5# in Dongguan Machong Port, extending 700 meters from the front of terminal , equal to an area
of 800,000 square meters at a consideration of RMB 260,000,000. Up to 30 June 2011, the
Company has paid the first four installments of the consideration. As the Group has not obtain the
land use right certificate, the relevant payments were therefore recognized as other non-current
assets.
（18） Deferred tax assets and deferred tax liabilities
(a) Deferred tax assets before offsetting
30 June 2011 31 December 2010
Deductible Deductible
temporary temporary
Deferred tax difference and difference and
assets losses Deferred tax assets losses
Provision for asset impairment 15,485,248 65,587,348 15,485,248 65,587,348
Deductible losses 14,580,112 67,326,990 14,580,112 67,326,990
Depreciation of fixed assets
and amortization of intangible
assets 12,495,066 50,145,172 12,495,066 50,145,172
Accrued expenses 5,582,196 25,714,331 6,162,977 28,134,252
Pre-operational expenses 1,390,282 9,100,033 1,390,282 9,100,033
Others 1,969,977 8,758,878 1,969,977 8,757,878
51,502,881 226,632,752 52,083,662 229,051,673
- 57 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(18) Deferred tax assets and deferred tax liabilities (continued)
(b) Deferred tax liabilities before offsetting
30 June 2011 31 December 2010
Deferred tax Taxable temporary Deferred tax Taxable temporary
liabilities difference liabilities difference
Change in fair value of available for
sale equity financial assets
recorded in capital surplus 1,029,600 4,290,000 1,324,800 5,520,000
(c) Analysis about deductible temporary differences and losses that the Group did not recognise
deferred tax assets for is as follows:
30 June 2011 31 December 2010
Deductible losses 5,170,629 5,170,629
Deductible temporary differences - -
5,170,629 5,170,629
(d) The above deductible losses that no deferred tax assets have been provided for will expire in the
following years:
30 June 2011 31 December 2010
2013 83,654 83,654
2014 379,817 379,817
2015 4,707,158 4,707,158
5,170,629 5,170,629
(e) As at 30 June 2011, there were no offsets between deferred tax assets and liabilities (31
December 2010: Nil).
- 58 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
（19） Provision for impairment of assets
31 December Current year Current year 30 June
2010 addition reduction 2011
Reverse Utilized Foreign exchange
translation
differences
Bad debt provisions 1,260,639 - - - - 1,260,639
Bad debt provision for accounts
receivable 49,994 - - - - 49,994
Bad debt provision for other receivable 1,210,645 - - - - 1,210,645
Provision for declines in the value of
inventories(Note 5(7)) 3,396,128 - - - - 3,396,128
Provision for impairment of long-term
equity investments (Note 5(9)) 3,128,300 - - - - 3,128,300
Provision for impairment of fixed assets
(Note 5(12)) 60,720,001 - - - - 60,720,001
68,505,068 - - - - 68,505,068
（20） Short-term borrowings
30 June 2011 31 December 2010
Bank loans - unsecured 1,463,550,000 1,225,550,000
The above bank loans includes 577,000,000 denominated in RMB(31 December 2010:
390,000,000) and 1,043,000,000 denominated in HKD(31 December 2010: 983,000,000), the latter
is equivalent to RMB 886,550,000 (31 December 2010: 835,550,000).
As at 30 June 2011, the weighted average interest rate of the short-term borrowings was 3.95%per
annum (2010: 3.68%).
（21） Notes payable
30 June 2011 31 December 2010
Bank acceptance notes 1,875,000 1,895,750
As at 30 June 2011, RMB 1,875,000 had an expected maturity within 1 year (31 December 2010:
RMB 1,895,750).
- 59 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
（22） Accounts payable
30 June 2011 31 December 2010
Construction amounts payable 236,219,323 160,673,611
Service amounts payable 28,293,021 20,810,343
Material purchase amounts payable 9,538,728 23,131,022
Rental payables 5,745,552 5,238,273
Machinery procurement amounts payable 2,415,767 4,870,002
282,212,391 214,723,251
(a) As at 30 June 2011, the Group did not have any accounts payable balances which were due to
parties having 5% or above shareholdings in the Company except for the amount due to Nanshan
Group below. (31 December 2010: nil).
(b) Accounts payable due to related parties:
30 June 31 December
2011 2010
Nanshan Group 6,586,827 8,583,552
Shenzhen Haiqin Engineering Supervision Co. Ltd.
(“Haiqin Engineering”) 5,062,227 9,972,227
China Merchants Holdings (international) information
technology company Ltd 703,812 -
Nantian Youpo 202,409 202,361
Xuqin 140,950 1,760,479
12,696,225 20,518,619
(c) As at 30 June 2011, accounts payable with aging over 1 year amounting to RMB 136,346,284 (31
December 2010: RMB 148,390,794) were mainly payable for construction. As the related
construction projects have not been completed yet, the accounts have not been settled. Up to the
approval date of these financial statements, RMB46,569,225 was paid.
(d) The following accounts payable balances are denominated in foreign currency:
30 June 2011 31 December 2010
Original currency Exchange rate RMB equivalent Original currency Exchange rate RMB equivalent
USD 5,644 6.62 37,363 7,433 6.62 49,208
HKD 1,081,827 0.85 919,553 1,359,449 0.85 1,155,532
956,916 1,204,740
- 60 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(23) Advances from customers
30 June 2011 31 December 2010
Service fee receipt in advance 5,163,375 4,769,320
(a) As at 30 June 2011, the Group did not have any advance from customers balances which were due
to parties having 5% or above shareholdings in the Company (31 December 2010: Nil).
(b) As at 30 June 2011, no balances of advance from customers were from related parties (31
December 2010: Nil).
(c) As at 30 June 2011, no balances of advance from customers were aged above 1 year (31
December 2010: 1,100,684).
(24) Employee benefits payable
31 December Current year Current year 30 June
2010 additions reductions 2011
Wages and salaries, bonuses, allowances
and subsidies 27,253,030 89,071,040 (95,249,514) 21,074,556
Staff welfare - 2,409,406 (2,409,406) -
Social security contributions 10,256 8,159,864 (8,160,306) 9,814
Including: Medical insurance - 1,279,510 (1,279,510) -
Basic pension - 6,456,075 (6,456,075) -
Unemployment insurance - 122,122 (122,122) -
Employment injury insurance 10,256 130,970 (131,412) 9,814
Generational insurance - 171,187 (171,187) -
Defined contribution plan * 125,952 1,400,251 (1,526,203) -
Housing funds 11,810 5,518,648 (5,530,458) -
Labor union and employee education funds 9,528,864 3,937,864 (2,781,902) 10,684,826
Others - 96,240 (96,240) -
36,929,912 110,593,313 115,754,029 31,769,196
* On 3 June 2008, the Group participated in a group defined contribution plan of Nanshan Group
approved by Shenzhen government. The above pension contributions were paid into the plan
through Nanshan Group.
As at 30 June 2011, employee benefits payable balance did not include default items (31
December 2010: Nil).
- 61 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(24) Employee benefits payable (continued)
Pursuant to the resolution of 2004 general meeting of shareholders on 17 May 2005, it s resolved
that the management team will be granted a performance reward scheme basing on the current
year net profit and yearly net asset return ratio. The Company has provided RMB 14,917,004 of
management reward in the first half of 2011 (Jan.-Jun.2010: 2,932,054), which was debited to
general and administrative expenses.
(25) Taxes payable
30 June 2011 31 December 2010
Enterprise income tax payable 29,006,918 69,788,458
Withholding tax payable 23,736,008 23,736,008
Business tax payable 5,745,215 4,834,815
Value-added-tax payable 49,934 95,738
Others 3,519,097 2,128,501
62,057,172 100,583,520
(26) Interest payable
30 June 2011 31 December 2010
Interest payable for long-term
borrowings that interests are payable
by installment and principal at maturity 905,272 769,567
Interest payable for short-term
borrowings 2,385,855 2,188,839
3,291,127 2,958,406
(27) Dividends payable
30 June 2011 31 December 2010
Payable to International Enterprise Co., Ltd. 121,367,360 121,367,360
Payable to Hidoney Developments Co., Ltd. 91,983,683 91,983,683
Nanshan Group 171,681,743 -
Public A Shares 43,552,280 -
Public B Shares 83,291,584 -
511,876,650 213,351,043
- 62 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(27) Dividends payable(continued)
As at 30 June 2011, the balances were payable to the minority shareholders of CCT, one of the
subsidiaries of the Company, being dividends declared for 2010,and The company in July 2011
assigned 2010 dividend.
(28) Other payables
30 June 2011 31 December 2010
Security expense payable 18,111,185 16,713,645
Temporary receipts 9,300,759 14,143,124
Due to employees 5,248,250 819,218
Deposits received 2,515,822 1,944,902
Service fees 1,748,152 951,137
Due to Nanshan Group 1,557,047 28,278
Insurance indemnity 1,365,425 1,386,919
Audit fee payable - 1,680,000
Others 8,911,981 7,360,583
48,758,621 45,027,806
(a) As at 30 June 2011, except for the amount due to Nanshan Group, the Group did not have any
other payables which were due to parties having 5% or above shareholdings in the Company.
(b) Other payables due to related parties:
30 June 2011 31 December 2010
Nanshan Group 1,557,047 48,304
China Merchants International Cold Chain
(Shenzhen)Co.,Ltd(“CMICCL”) 253,800 253,800
CMML 53,380 -
SMP 41,633 20,894
1,906,220 322,998
(c) As at 30 June 2011, other payables with aging over 1 year amounting to RMB 7,961,443 (31
December 2010: RMB8,435,721) are mainly deposits. As the relevant business keeps running, the
amounts have not been settled. Up to the approval date of these financial statements, there was no
significant repayment.
- 63 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(28) Other payables (continued)
(d) The following other payable balances are dominated in foreign currency:
30 June 2011 31 December 2010
Original Exchang RMB Original Exchan RMB
currency e rate equivalent currency ge rate equivalent
USD - 6.62 - 533,500 6.62 3,531,770
HKD 417,311 0.85 354,714 327,518 0.85 278,390
354,714 3,810,160
(29) Current portion of non-current liabilities
30 June 2011 31 December 2010
Current portion of long-term borrowings (a) 280,500,000 408,000,000
Current portion of deferred revenue(Note 5(31)) 4,951,750 4,951,750
285,451,750 412,951,750
(a) Current portion of long-term borrowings
30 June 2011 31 December 2010
Bank borrowings - unsecured 280,500,000 408,000,000
As at 30 June 2011, the balance of current portion of long- term borrowings represented the
borrowing of HKD 100,000,000 by the Company and the borrowings by the Company’s subsidiary
Chiwan container terminals Co.,Ltd(“CCT”) of HKD 230,000,000.
- 64 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(29) Current portion of non-current liabilities (continued)
Top five current portion of long-term borrowings:
Borrowing Curren
beginning Borrowing ending cy Interest rate (%) 30 June 2011 31 December 2010
Original RMB Original RMB
currency equivalent currency equivalent
Nanyang 19 October 19 October 2011 HKD 1.13%-1.57% 150,000,000 127,500,000 150,000,000 127,500,000
Commercial Bank 2009
Nanyang 22 July 2008 25 June 2011 HKD 1.079%-1.523% - - 139,000,000 118,150,000
Commercial Bank
Nanyang 17 September 17 September HKD 1.69%-2.23% 100,000,000 85,000,000 100,000,000 85,000,000
Commercial Bank 2009 2011
Nanyang 31 July 2008 25 July 2011)) HKD 1.29%-2.03% 80,000,000 68,000,000 80,000,000 68,000,000
Commercial Bank
Nanyang 25 June 2008 25 June 2011 HKD 1.079%-1.523% - - 11,000,000 9,350,000
Commercial Bank
330,000,000 280,500,000 480,000,000 408,000,000
(30) Special Payables
30 June 2011 31 December 2010
Refunds of Harbor Construction Fee 76,528,850 69,119,645
The item is refunds of harbor construction fee to the company and its subsidiary CCT from
Shenzhen traffic bureau. According to
released by Ministry of Finance, the fund should be managed in separate account and can be only
used on fundamental facilities’ construction of marine transportation.
(31) Other non-current liabilities
30 June 2011 31 December 2010
Deferred revenue
- Business Contract (a) 55,455,081 57,841,707
- Government grant related to asset (b) 8,000,000 8,000,000
63,455,081 65,841,707
- 65 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(31) Other non-current liabilities(continued)
(a) Business Contract
31 December 2010
- the portion of current liabilities 4,951,750
- the portion of non-current liabilities 57,841,707
62,793,457
Current year reduction (2,386,626)
Less: the portion of current liabilities (4,951,750)
30 June 2011 55,455,081
Residual useful years 12-13 年
Deferred revenue is amortised on a straight-line basis over the expected beneficial period of 20
years and is presented at cost net of accumulated amortisation.
(b) Government grant related to asset
The item is government subsidies received which based on (NDRC[2010] No.1263). The total received amount is 8
million yuan.
- 66 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(32) Share capital
31 December 2010 Current year additions / decreases 30 June 2011
Issuance of Presented Shares converted from
new shares shares accumulation fund Others Sub-total
Shares with restriction on disposal -
State shares - - - - - - -
PRC legal person shares - - - - - - -
Other domestic shares 673,252 - - - 161,862 161,862 835,114
Including: Domestic shares of legal
person other than the State - - - - - - -
Natural person shares 673,252 - - - 161,862 161,862 835,114
Foreign shares - - - - - - -
Including: Foreign legal person shares - - - - - - -
Natural person shares - - - - - - -
673,252 - - - 161,862 161,862 835,114
Shares without restriction on disposal -
Common shares in RMB 464,789,805 - - - - - 464,789,805
Domestically listed foreign shares 179,300,673 - - - (161,862) (161,862) 179,138,811
644,090,478 - - - (161,862) (161,862) 643,928,616
644,763,730 - - - - - 644,763,730
- 67 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(32) Share capital(continued)
Since the share reformation scheme came into effect on 30 May 2006, the non tradable shares became tradable in 1 to 3 years. Up to 30 June 2011, all the
shares held by Nanshan Group have become tradable.
31 December 2009 Current year additions / decreases 31 December 2010
Issuance of Presented Shares converted from
new shares shares accumulation fund Others Sub-total
Shares with restriction on disposal -
State shares - - - - - - -
PRC legal person shares - - - - - - -
Other domestic shares 361,942 - - - 311,310 311,310 673,252
Including: Domestic shares of legal person
other than the State - - - - - - -
Natural person shares 361,942 - - - 311,310 311,310 673,252
Foreign shares - - - - - - -
Including: Foreign legal person shares - - - - - - -
Natural person shares - - - - - - -
361,942 - - - 311,310 311,310 673,252
Shares without restriction on disposal -
Common shares in RMB 464,789,805 - - - - - 464,789,805
Domestically listed foreign shares 179,611,983 - - - (311,310) (311,310) 179,300,673
644,401,788 - - - (311,310) (311,310) 644,090,478
644,763,730 - - - - - 644,763,730
- 68 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(33) Capital surplus
31 December Current year Current year
2010 additions reductions 30 June 2011
Share premium 142,786,083 24,440,000 - 167,226,083
Other capital surplus—
Change in fair value of available-for-sale financial
assets
- Total (Note 5(8)) 5,520,000 - (1,230,000) 4,290,000
- Deferred tax liabilities (Note 5(18)) (1,324,800) 295,200 - (1,029,600)
Transfer from the balance of capital surplus -
recognised under previous accounting system (a) (2,781,133) - (2,781,133)
Others 709,605 1,210,000 - 1,919,605
144,909,755 25,945,200 (1,230,000) 169,624,955
31 December Current year Current year 31 December
2009 additions reductions 2010
Share premium 142,786,083 - - 142,786,083
Other capital surplus—
Change in fair value of available-for-sale financial
assets
- Total (Note 5(8)) 6,020,000 (500,000) - 5,520,000
- Deferred tax liabilities (Note 5(18)) (1,324,400) (400) - (1,324,800)
Transfer from the balance of capital surplus -
recognised under previous accounting system (a) (2,781,133) - (2,781,133)
Others 709,605 - - 709,605
145,410,155 (500,400) - 144,909,755
(a) Balances of capital surplus recognized under previous accounting system mainly include:
-During 2003 to 2005, the Group provided shareholder’s loan of RMB 100,000,000 to Mawan
companies. According to related circular CK(2001)64 regarding accounting treatment of sales of
assets between related parties issued by the Ministry of Finance, that part of interest received
that exceeded the market interest rate of RMB 7,124,745 was recorded in capital surplus.
-On 1 January 2006, CCT changed its recording currency from Hong Kong dollar to Renminbi
yuan. According to the relevant PRC regulations, the exchange differences arising from
translation of foreign capital and other equity accounts are recorded in capital surplus. The
Group debited the portion of CCT’s capital and other equity accounts of RMB 10,086,842,
calculated based on the proportion of equity interest the Group held in CCT, to capital surplus.
- 69 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(34) Surplus reserve
Current year Current year
31 December 2010 additions reductions 30 June 2011
Statutory surplus reserve 383,570,404 38,122,001 - 421,692,405
Current year Current year 31 December
31 December 2009 additions reductions 2010
Statutory surplus reserve 355,134,736 28,435,668 - 383,570,404
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, 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.
The Company appropriates discretionary surplus reserve after shareholders’ meeting approves
the Board of Director’s proposal. The discretionary surplus reserve can be used to make up for
the loss or increase the paid in capital after approval.
Pursuant to the board resolution, the Company appropriates 10% of net profit to statutory
surplus reserve, namely RMB 38,122,001 (2010: 28,435,668), no appropriation to discretionary
reserve is provided.
(35) Retained earnings
Jan.-Jun.2011 2010
Amount Appropriate or Amount Appropriate or
distribution % distribution %
Opening retained earnings 2,079,724,472 - 1,721,028,196 -
Add: Current year net profit attributable to the
equity owners of the parent company 258,357,428 - 596,680,156 -
Less: Appropriation of statutory reserves (38,122,001) 10% (28,435,668) 10%
Common share dividends payable (298,525,607) 50% (209,548,212) 50%
Closing retained earnings (1,210,000) - - -
Opening retained earnings 2,000,224,292 2,079,724,472
- 70 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(35) Retained earnings (continued)
As at 30 June 2011, included in the undistributed profits, the amount of RMB 466,088,790 is
subsidiaries’ surplus reserve attributable to the Company (31 December 2010: RMB
466,088,790), among which nothing is appropriated for the first half year (Jan.-Jun.2010: nil).
In accordance with a resolution at the Board of Directors meeting dated 11 June 2010, the
Board of Directors proposed dividend of RMB 3.25 for each 10 shares of the issued shares of
644,763,730 in total, with an aggregated amount of RMB 209,548,212(2009 proposed:
RMB322,381,865).
In accordance with the resolution at the Shareholder’s meeting dated on 27 May 2011, the
Board of Directors proposed dividend of RMB 4.63 for each 10 shares of the issued shares of
644,763,730 in total, with an aggregated amount of RMB298,525,607 and has been recorded
as liability as at 30 June 2011.
(36) Minority interests
30 June 2011 31 December 2010
CCT 645,756,034 567,608,774
Dongguan Chiwan Wharf Company
Limited 67,500,000 -
713,256,034 567,608,774
(37) Revenue and cost of sales
Jan.-Jun.2011 Jan.-Jun.2010
Revenue from main operations 813,668,717 809,922,098
Revenue from other operations 31,314,857 23,839,787
844,983,574 833,761,885
Jan.-Jun.2011 Jan.-Jun.2010
Cost of main operations 354,204,083 333,013,099
Cost of other operations 5,604,991 3,876,991
359,809,074 336,890,090
- 71 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(37) Revenue and cost of sales (continued)
(a) Revenue and cost from main operations
Analysis by business is as follows:
Jan.-Jun.2011 Jan.-Jun.2010
Revenue from Cost from Revenue from
main main main Cost from main
operations operations operations operations
Loading and unloading services 759,054,661 329,387,676 757,020,116 314,985,173
Transportation service 68,602,368 43,857,182 70,188,863 38,870,144
Agency and others services 5,052,463 - 3,555,337 -
Elimination (19,040,775) (19,040,775) (20,842,218) (20,842,218)
813,668,717 354,204,083 809,922,098 333,013,099
Analysis by geographic area is as follows:
Jan.-Jun.2011 Jan.-Jun.2010
Revenue from Cost from
Revenue from Cost from main main main
main operations operations operations operations
Mainland China
810,804,713 354,204,083 808,068,595 333,013,099
Hong Kong 2,864,004 - 1,853,503 -
813,668,717 354,204,083 809,922,098 333,013,099
(b) Other revenue and cost
Jan.-Jun.2011 Jan.-Jun.2010
Revenue from Cost from other Revenue from Cost from other
other operations operations other operations operations
Lease income 11,866,087 1,090,971 7,769,043 1,265,627
Security fee 8,268,912 1,244,159 3,782,631 223,312
Other logistic services in port 5,227,930 - 5,592,274 -
Agency fee 2,455,045 1,616,614 2,236,507 1,183,204
Sales of material 1,065,715 - 690,565 -
Documentation fee 456,991 - 300,535 -
Containers management fee 1,974,177 1,653,247 3,468,232 1,204,848
31,314,857 5,604,991 23,839,787 3,876,991
- 72 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(37) Revenue and cost of sales (continued)
(c) Particulars of revenue from the top five customers of the Group
Revenue from the top 5 customers with aggregate amount of RMB 519,367,626 (Jan.-Jun.2010:
RMB 521,509,348) accounted for 61% (Jan.-Jun.2010: 63%) of the Group’s total revenue in
Jan.-Jun.2011. Details are as follows:
% of total revenue
Revenue of the Group
Customer A 243,295,867 29%
Customer B 171,032,864 20%
Customer C 39,843,705 5%
Customer G 34,429,950 4%
Customer F 30,765,240 3%
519,367,626 61%
(38) Tax and surcharges
Jan.-Jun.2011 Jan.-Jun.2010 Accrual basis
Business tax 31,161,389 28,739,075 See Note 3
City maintenance and
construction tax 2,188,931 994,959 See Note 3
Educational surcharge 1,404,818 46,444 See Note 3
Others 237,308 116,842
34,992,446 29,897,320
- 73 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(39) General and administration expenses
Jan.-Jun.2011 Jan.-Jun.2010
Staff cost 45,991,777 26,829,760
Depreciation and amortisation 4,723,026 4,051,919
Utilities and property management 4,051,958 4,296,732
Entertainment 3,083,598 2,426,333
Decoration and maintenance 2,554,029 1,451,377
Insurance 2,532,314 1,950,801
Professional service 2,300,184 1,742,810
Transportation 2,022,448 2,305,026
Communication 1,741,015 1,478,855
Rental 804,083 856,163
Others 7,108,528 7,997,871
76,912,960 55,387,647
(40) Financial (income)/expenses - net
Jan.-Jun.2011 Jan.-Jun.2010
Interest expenses - Interests on 26,557,236 6,132,898
borrowings
Less: interest income (3,144,709) (2,825,461)
Exchange gains 4,009,335 668,086
- Exchange gains from operating 4,009,335 668,086
activities
Others 1,184,082 940,177
28,605,944 4,915,700
(41) Investment income
Jan.-Jun.2011 Jan.-Jun.2010
Investment income from investments under
cost method accounting - -
Investment income from investments under
equity method accounting (Note 5
(9)(a)(b)) 58,084,197 54,339,534
Loss from disposal of long-term investment - 29,767,257
Income from available-for-sale financial
assets 360,000 310,000
58,444,197 84,416,791
- 74 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(41) Investment income(continued)
There is no significant restriction in receipt in remittance for investment income.
(a) Investment income from long-term equity investments under cost method accounting
Investment income from top five investees or individually accounted to over 5% of total profit are
analysed as below:
Jan.-Jun.2011 Jan.-Jun.2010 Reason of fluctuation
42,044,346 56,400,106 Decrease in performance
MPIL
COHA(Laizhou) 16,044,387 - Newly joint venture in Jule 2010
Cyber Network (296,450) 939,805 Decrease in performance
CMML 291,914 (3,000,377) Decrease in performance
58,084,197 54,339,534
（42） Non-operating income
Jan.-Jun.2011 Jan.-Jun.2010
Gain on disposal of non-current assets 70,135 2,008,173
Including: disposal of fixed assets 70,135 2,008,173
Government grant (a) - 344,690
Others 216,968 116,311
287,103 2,469,174
(a) Details of government grants
Jan.-Jun.2011 Jan.-Jun.2010
Special award of water saving - 344,690
- 344,690
- 75 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(43) Non-operating expenses
Jan.-Jun.2011 Jan.-Jun.2010
Losses on disposal of non-current assets 67,125 57,458
Including: disposal of fixed assets 67,125 57,458
Donation 17,000 6,000
Penalty expenditure 290 -
Others 12,888 41,899
97,303 105,357
(44) Income tax expenses
Jan.-Jun.2011 Jan.-Jun.2010
Current income tax 66,211,679 55,289,972
Deferred income tax 580,780 10,649,149
66,792,459 65,939,121
The reconciliation from income tax calculated based on applicable tax rate and total profit
presented in the consolidated financial statements to the income tax expenses is as follows:
Jan.-Jun.2011 Jan.-Jun.2010
Profit before income tax 403,297,147 493,451,736
Income tax calculated at the applicable
tax rate of 24% (2010: 22%) 96,791,315 108,559,382
Effect of tax holidays (15,972,249) (27,093,995)
Income not subject to tax (14,026,607) (15,491,694)
Effect of different tax rate in other tax
jurisdictions - (34,572)
Income tax expenses 66,792,459 65,939,121
- 76 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(45) Earning per share
(a) Earnings per share - basic
Basic earning’s per share is calculated by dividing the profit attributable to shareholders of the
Company by the weighted average number of ordinary shares in issue during the year.
Jan.-Jun.2011 Jan.-Jun.2010
Consolidated profit attributable to
shareholders of the Company 258,357,428 308,963,482
Weighted average number of ordinary
shares in issue 644,763,730 644,763,730
Basic earnings per share 0.401 0.479
Includes:
- Basic earnings per share from 0.401 0.479
continuing operations:
(b) Earnings per share - diluted
The Company had not potential dilutive outstanding equity instruments issued as at Jan.-Jun.
2011 and 2010, accordingly the diluted earnings per share are the same as the basic ones.
(46) Other comprehensive income
Jan.-Jun.2011 Jan.-Jun.2010
Gain/(loss) arising from available-for-sale financial
assets (1,230,000) (1,050,000)
Less: Income tax relating to available-for-sale
financial assets 295,200 231,000
Subtotal (934,800) (819,000)
Exchange differences arising from translating
foreign operations - 282
Subtotal - 282
(934,800) (818,718)
- 77 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(47) Notes to consolidated cash flow statements
(a) Cash received relating to other operating activities
Jan.-Jun.2011 Jan.-Jun.2010
Refunds of Harbour Construction Fee
received 7,458,725 (981,521)
Intrest income 5,419,544 3,059,031
Government grant - 344,690
Others 382,164 5,754,973
13,260,433 8,177,173
(b) Cash paid relating to other operating activities
Jan.-Jun.2011 Jan.-Jun.2010
Office expenses & utilities 6,892,098 7,450,339
Lease expenses 192,721 172,853
Entertainment expenses 2,918,335 2,430,689
Asset insurance fee 2,861,214 1,954,592
Car expenses 2,344,176 1,991,373
Consulting & auditing fee 1,856,663 2,076,638
Port expenses 1,800,919 3,143,587
Collection and payment on others behalf 1,205,094 8,645,922
Travel & accommodation 1,073,977 1,559,967
Advertisements & exhibition expense 80,383 319,691
Others 12,727,238 10,753,160
33,952,818 40,498,811
- 78 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(48) Notes to consolidated cash flow statements
(a) Notes to consolidated cash flow statements
Reconciliation from the net profit to the cash flows from operating activities
Jan.-Jun.2011 Jan.-Jun.2010
Net profit 336,504,688 427,512,615
Add: (Provisions for)/reversal of assets
impairment - -
Depreciation of fixed assets 80,579,340 89,525,942
Depreciation/amortization of
investment property 658,922 453,552
Amortization of intangible assets 19,244,482 18,880,351
Amortization of long-term prepaid
expenses 1,684,637 2,009,038
Gains on disposal of fixed assets and
intangible assets (70,135) (1,950,715)
Losses on scrapping of fixed assets - -
Finance expenses/(income) 26,557,236 5,703,729
Investment (income)/lose (58,444,197) (84,416,791)
Increase in deferred tax assets 580,781 10,469,149
Decrease/(increase) in inventories (1,496,820) 754,301
(Increase)/decrease in operating
receivables (88,047,570) (34,928,208)
Increase/(decrease) in operating
payables (16,370,519) (56,425,726)
Net cash flows from operating activities 301,380,845 377,587,237
Net increase/(decrease) in cash and cash equivalents
Jan.-Jun.2011 Jan.-Jun.2010
Cash at end of year 923,185,625 1,108,008,730
Less: cash at beginning of year 781,720,083 741,096,267
Net increase/(decrease) in cash 141,465,542 366,912,463
- 79 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
5 Notes to the consolidated financial statements (continued)
(b) Cash and cash equivalents
30 June 2011 31 December 2010
Cash
Including: Cash on hand 14,386 11,473
Cash at bank without restriction 921,271,006 780,540,849
Other cash balance without restriction 1,900,233 1,167,761
Cash and cash equivalents at end of year 923,185,625 781,720,083
6 Segment information
The reportable segments of the Group are the business units that provide different products or
service, or operate in the different areas. Different businesses or areas require different
technologies and marketing strategies, the Group, therefore, separately manages the
production and operation of each reportable segment and evaluates their operating results
respectively, in order to make decisions about resources to be allocated to these segments and
to assess their performance.
The Group identified 3 reportable segments namely loaded and unloaded operation,
transportation and agency service and other services respectively.
The management of the Company identifies reviews the group internal reports regularly in order
to assess their performance and make decisions of resources being allocated to the segment,
which is the foundation of the Group identifying operation segments.
Inter-segment transfers are measured by reference to sales to third parties.
The assets are allocated based on the operations of the segment and the physical location of
the asset. The liabilities are allocated based on the operations of the segment. Expenses
indirectly attributable to each segment are allocated to the segments based on the proportion of
each segment’s revenue.
- 80 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
6 Segment information (continued)
(a) Segment information as at and for the period ended 30 June 2011 is as follows :
Load and unload Agency service and
operation Transportation others Unallocated Elimination Total
Revenue from external customers 790,369,518 49,561,593 5,052,463 - - 844,983,574
Inter-segment revenue - 19,040,775 - - (19,040,775) -
Interest income 750,865 7,737 3,618 2,382,489 - 3,144,709
Interest expenses (12,066,630) - - (14,490,606) - (26,557,236)
Share of profit of associates and joint venture 58,088,733 - (4,536) - - 58,084,197
Asset impairment loss - - - - - -
Depreciation and amortisation (96,337,685) (5,750,116) (79,580) - - (102,167,381)
Total profit 419,432,460 18,841,428 2,474,542 (37,451,283) - 403,297,147
Income tax expenses (70,238,489) (4,521,943) (196,952) 8,164,925 - (66,792,459)
Net profit 349,193,971 14,319,485 2,277,590 (29,286,358) - 336,504,688
Total assets 6,469,955,935 222,019,979 198,029,531 (81,167,401) (35,677,118) 6,773,160,926
Total liabilities 706,338,734 51,439,834 10,780,347 2,104,137,017 (35,677,118) 2,837,018,813
Non-cash expenses other than depreciation and amortisation - - - - - -
Long-term equity investments in associates and joint ventures 1,114,465,406 - 174,304,899 - - 1,288,770,305
Additions to non-current assets other than long-term equity
investments 237,812,934 22,230,454 79,865 48,250 - 260,171,503
- 81 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
6 Segment information (continued)
(b) Segment information as at and for the period ended 30 June 2010 is as follows:
Load and unload Agency service and
operation Transportation others Unallocated Elimination Total
Revenue from external customers 780,859,901 49,346,646 3,555,338 - - 833,761,885
Inter-segment revenue - 20,842,218 - - (20,842,218) -
Interest income 254,477 24,107 2,551 2,554,326 - 2,825,461
Interest expenses (3,623,924) - - (2,508,974) - (6,132,898)
Share of profit of associates and joint venture 56,400,106 - 27,736,685 - - 84,136,791
Asset impairment loss - - - - - -
Depreciation and amortisation (102,805,827) (8,000,228) (62,828) - - (110,868,883)
Total profit 445,785,249 26,987,128 29,184,929 (8,505,570) - 493,451,736
Income tax expenses (59,055,943) (5,975,168) (188,294) (719,716) - (65,939,121)
Net profit 386,729,306 21,011,960 28,996,635 (9,225,286) - 427,512,615
Total assets 5,324,871,355 198,893,451 98,679,915 337,440,899 (27,098,676) 5,932,786,944
Total liabilities 836,946,275 53,519,717 10,579,091 1,421,103,322 (27,098,676) 2,295,049,729
Non-cash expenses other than depreciation and amortisation - - - - - -
Long-term equity investments in associates and joint ventures 244,490,196 - 77,769,333 - - 322,259,529
Additions to non-current assets other than long-term equity
investments 46,451,889 346,141 7,898 47,299 - 46,853,227
- 82 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
6 Segment information (continued)
The Group’s revenue from external customers of Mainland China and other countries or
geographical areas for the first half of 2011, and the total non-current assets other than financial
assets and deferred tax assets located in the Mainland China and other countries or geographical
areas as at 30 June 2011 are as follows:
Revenue from external customers Jan.-Jun.2011 Jan.-Jun.2010
Mainland PRC 842,119,570 831,908,382
Hong Kong 2,864,004 1,853,503
844,983,574 833,761,885
Total non-current assets other than 30 June 2011 31 December 2010
financial assets and deferred tax assets
Mainland PRC 5,431,792,752 5,068,071,718
Hong Kong 23,592 28,263
5,431,816,344 5,068,099,981
The revenue from Load and unload operation segment of RMB 519,367,626 is derived from a
single customer, accounting for 61% of the Group’s total revenue
7 Related parties and related party transactions
(1) The parent company
(a) General information of the parent company
Entity type Place of Legal Nature of business Organisation
registration representative code
Nanshan Group Sino-foreign Shenzhen Fu Yuning Land development, port 61883297-6
invested service and transportation,
enterprise industry and commerce,
tour, real estate and others
China Merchants (Nanshan) Holdings Ltd (an indirect subsidy of China Merchants Group Co.,
Ltd)，Shenzhen Investment Holdings Co.ltd and Guangdong Guangye Investment Holdings Ltd
holds 36.52% ， 26.1% and 23.49% share of Nanshan Group respectively, there is no other
shareholders’ share over 10%.
- 83 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (continued)
(1) The parent company (continued)
(b) Registered capital and changes in registered capital of the parent company
31 December Current year Current year 30 June
2010 additions decreases 2011
Nanshan Group 500,000,000 - - 500,000,000
(c) The proportion of interests and voting rights in the Company held by the parent company
30 June 31 December
2011 2010
% interest held % voting rights % interest held % voting rights
Nanshan Group 57.51% 57.51% 57.51% 57.51%
(2) Subsidiaries
The general background and other related information of the subsidiaries is set out in Note 4.
(3) Associates
The general background and other related information of the associates is set out in Note 5(10).
Entity type Place of Legal Nature of Registered capital Interest Voting right oganisation code
incorporation presentative business held held
Joint venture –
China Overseas Harbour Affairs Sino-foreign Shandong, Li Chuan Harbour USD176,407.7 40% 40% 61344937-X
(Laizhou)Co.,Ltd invested enterprise China service thousand
Associates –
China Merchants Holdings Sino-foreign Shenzhen, Luo Huilai Network 50 million 23.16% 23.16% 73207614-X
(international ) Information invested enterprise China service
Technology Co.,Ltd(Previous
name：Shenzhen Cyber-Harbour
Network Co Ltd)
CMML Sino-foreign Shenzhen, Hu Jianhua Warehousi 400 million 40% 40% 75045115-0
invested enterprise China ng service
MPIL Foreign British Not Investment USD 10 50% 50% Not applicable
enterprise Virgin Islands applicable
- 84 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (continued)
(4) Other related parties
Relationship with the Group Organisation
code
CPSB Controlled by the same parent company 61883389-9
Shenzhen Chixiao Engineering Construction Co. Controlled by the same parent company
Ltd. (“Chixiao Engineering”) 61883136-7
Xuqin Controlled by the same parent company 70845749-5
COCL Controlled by the same parent company 72616516-2
Shenzhen Nanshan Real Estate development Controlled by the same parent company
Ltd.(Nanshan Development) 75046859-3
Haiqin Engineering Common key connected person with the Company 61888000-1
Shenzhen Mawan Port Co., Ltd. (“SMP”) Indirect associates of the Company, and common 74322579-6
key management personnel with the Company
Shenzhen Mawan Wharf Co, Ltd.(“SMW”) Indirect associates of the Company, and common 74322582-5
key management personnel with the Company
Shenzhen Mawan Wharf Holdings Ltd Indirect associates of the Company, and common
key management personnel with the Company 74322581-7
China Merchants Holdings (international ) Associate of the Company
Information Technology Co.,Ltd(“
Cyber Network”) 73207614-X
MPIL Indirect associate of the Company Not applicable
Nantian Oilmills Common key connected person with the Company 61881614-0
CMML Associate of the Company 75045115-0
Shenzhen Southsea Grains Industries Limited Common key connected person with the Company
(“Southsea Grains”) 61883769-7
China Merchants Port Services (Shenzhen) Co Ltd
(“CMPS”) Note 19244179-0
Shekou Container Terminals Limited (“SCT”) Note 61883279X
China Merchants International Cold Chain Note
(Shenzhen) Company Limited (“CMCCL”) 61889222-3
Hinwin Development Ltd. Note Not applicable
China Merchant Bank Lt d(CMB) Note 10001686-X
Note: As at 30 June 2010, one of the Company’s parent company Nanshan Group’s indirect share
holder China Merchants Group Co., Ltd(which belongs to State-owned Assets Supervision and
Administration Commission of the State Council) via the arrangement of another share holder
Guangdong Guangye Investment Holdings ltd, obtained 23.49% share of Nanshan Group it holds
under trust, brought the Nanshan Group into the scope of the consolidation. These companies are
all subsidiaries of China Merchants Group Co., Ltd except China Merchants Bank which is an
associate of it.
- 85 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (continued)
(5) Related party transactions
Saved for disclosed in above, other major related party transactions are as follows:
(a) Saving or Purchasing goods, providing or receiving service
Saving or Purchasing goods:
Pricing Policies Jan.-Jun.2011 Jan.-Jun.2010
and determination Amount % of same Amount % of same
Related party Type of transaction Nature of transaction procedures transaction transaction
Haiqin Service received Project management Negotiation 4,910,000 100% - -
Engineering
Cyber Network Service received Network service Negotiation 3,014,971 100% 1,921,430 100%
Purchase of goods Purchase cement Negotiation 827,000 100% - -
Xuqin baffle plate
Xuqin Service received Building projec Negotiation 346,913 0.2% 360,000 5%
Service received
Load and unload Negotiation 4,560 0.0% - -
SCT service
Service received
Nantian Load and Negotiation - - 1,453,185 0.6%
Oilmills unload service
Poviding or receiving service：
Pricing Policies Jan.-Jun.2011 Jan.-Jun.2010
and determination Amount % of same Amount % of same
Related party Type of transaction Nature of transaction procedures transaction transaction
Nantian Oilmills Service provided Load and unload Negotiation 7,040,072 1.0% 5,375,660 0.8%
service
SMP Service provided Land Transportation Negotiation 6,795,332 14.0% 5,715,949 11.6%
and others
SMW Service provided Land Transportation Negotiation 3,439,489 7.0% 2,299,132 4.6%
and others
CMML Service provided Land Transportation Negotiation 1,606,240 3.0% - -
and others
Southsea grains Service provided Load and unload Negotiation 792,553 0.1% 1,067,316 0.2%
service
SCT Service provided Land Transportation Negotiation 120,200 0.2% 96,217 0.0%
and others
- 86 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (continued)
(5) Related party transactions (continued)
(b) Lease
The Group as the leaser:
Lease income Lease
Lessor Lessee Leased assets Start date Ending date recognition basis income
The Company CPSB Port packing January 2011 December 2011 Negotiation 4,701,910
yards
CCT Southsea Grains Office land January 2010 December 2011 Negotiation 2,132,690
Negotiation
CCT CMML Crane May 2006 Not applicable 960,000
Negotiation
The Company CPSB Landand packing August 2010 December 2011 832,320
yards
The Company Haiqin Building January 2011 December 2011 Negotiation 174,240
Engineering
8,801,160
The Group as the lessee:
Lease income Lease
Lessor Lessee Leased assets Start date Ending date recognition basis income
Nanshan Entities of the Land, Office and Various N Various Negotiation 18,917,836
Development Group others
Nanshan Entities of the Land, buildings and Various Respective expiry of Negotiation 2,251,889
Group Group packing yards operation of the group
companies
CMPS CCT Packing yards January 2010 December 2012 Negotiation 1,200,000
Nantian CGCL Packing yards January 2010 December 2011 Negotiation
Oilmills 1,068,723
CPSB The Company Land and buildings January 2010 December 2011 Negotiation 710,333
24,148,781
(c) The purchase of shares
At 4 may 2011 the group purchased its stock equity (100%) of Hinwin Development Ltd. with the
amount of HKD 119,856,506.
- 87 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (continued)
(6) Receivables from and payables to related parties
Receivables from related parties
30 June 2011 31 December 2010
Book amount Provision for bad Book amount Provision for bad
debt debt
Cash and bank China Merchants Bank 99,294,153 - 123,853,303 -
Accounts receivable CMML 1,655,720 - 344,900 -
Southsea Grains 1,107,347 - 110,521 -
CPSB 1,050,490 - - -
SMP 1,017,088 - 998,942 -
SMW 413,293 - 397,090 -
SCT 107,050 - 907,600 -
COCL 50,000 - - -
Haiqin Engineering 29,040 - - -
Nantian Oilmill 9,519 562,957
5,439,547 - 3,322,010 -
Other receivables MPIL 44,879,120 - 44,879,120 -
CMML 1,065,147 - 57,821 -
Xuqin 320,000 (192,000) 320,000 (192,000)
CPSB 135,622 - 135,622 -
SCT 58,071 - - -
SMW 40,409 - 79,083 -
SMP 28,290 - 20,961 -
46,526,659 (192,000) 45,492,607 (192,000)
- 88 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (continued)
(6) Receivables from and payables to related parties(continued)
Payables to related parties:
30 June 2011 31 December 2010
Short tem borrowings China Merchants Bank 50,000,000 50,000,000
Accounts payable Nanshan Group (a) 6,586,827 8,583,552
Haiqin Engineering 5,062,227 9,972,227
CMIT 703,812 -
Nantian Oilmill 202,409 202,361
Xuqin 140,950 1,760,479
12,696,225 20,518,619
Other payables Nanshan Group 1,557,407 48,304
CMCCCL 253,800 253,800
CMML 53,380 -
SMP (b) 41,633 20,894
1,906,220 322,998
(a) This item mainly includes the balance which Nanshan group collects electricity fees from
the group and pays to power supply bureau at almost the same price. Nanshan group also
pay the emoluments of key management and collect them from the company.
(b) The Company cooperates with Mawan companies in marketing promotion activities. Some
common expenses incurred in the cooperation are allocated to both parties based on
certain reasonable criteria. For those payments and receipts made on behalf, the Company
and Mawan companies recorded the amounts in other receivables or other payables.
- 89 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
7 Related parties and related party transactions (continued)
(7) Commitments in relation to the related parties
30 June 2011 31 December 2010
Rental
- Rental expense Nanshan Group 8,330,313 3,083,751
CPSB 856,783 1,713,566
9,187,096 4,797,317
- Rental income
CPSB 5,534,230 10,819,640
Southsea Grains 2,132,928 4,265,856
Haiqin engineering 174,240 348,480
7,841,398 15,433,976
8 Commitments
(1) Capital commitments
Capital expenditures contracted for by the Group at the balance sheet date but not yet necessary
to be recognised on the balance sheet are as follows:
30 June 2011 31 December 2010
Land and coastal line use rights 379,870,489 159,405,361
Machinery and equipments 121,730,470 168,291,373
Buildings 119,315,339 33,050,780
Harbour facilities - -
Others 5,478,858 -
626,395,156 360,747,514
The Group’s share of the joint ventures’ own commitments for capital expenditure at the balance
sheet date are nil.
- 90 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
8 Commitments (continued)
(2) Operating lease commitments
The future aggregate minimum lease payments due under the signed irrevocable operating leases
contracts are summarized as follows:
30 June 2011 31 December 2010
Within one year 25,298,569 5,614,470
Between 1 and 2 years 3,786,505 1,607,499
Between 2 and 3 years 1,708,105 830,341
More than 3 years 1,708,105 3,111,783
32,501,284 11,164,093
(3) Investment commitments
The company committed to inject RMB121,200,000 to increase the capital of Dongguan Wharf Ltd.
As at publishing day of the financial statement, the process of capital increment iscompleted.
(4) Fulfillment of prior period commitments
The Group has fulfilled the capital and operating lease commitments as of 30 June 2011 according
to the relevant contracts.
9 Events after the balance sheet date
(1) Significant events after balance sheet date
Nothing
(2) Proposed dividends
Nothing
10 Financial instrument and risk
The Group's activities expose it to a variety of financial risks: market risk (primarily currency risk
and interest rate risk), credit risk and liquidity risk. The Group's overall risk management
programme focuses on the unpredictability of financial markets and seeks to minimise potential
adverse effects on the Group's financial performance.
- 91 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (continued)
(1) Market risk (continued)
(a) Foreign exchange risk
The Group’s major operational activities are carried out in Mainland China and a majority of the
transactions are denominated in RMB. The Group is exposed to foreign exchange risk arising from
the recognized assets and liabilities, and future transactions denominated in foreign currencies
(recognized assets and liabilities are primarily with respect to Hong Kong dollars, foreign currency
transaction is mainly with respect of HK and US dollars). The Group’s finance department at its
headquarters is responsible for monitoring the amount of assets and liabilities, and transactions
denominated in foreign currencies.
According to current risk exposure and the trend of exchange rate fluctuation, management
believed that the risk caused by the fluctuation of foreign currency exchange rate is low in the
coming year.
As at 30 June 2011 and 2010, the carrying amounts in RMB equivalent of the Group’s assets and
liabilities denominated in foreign currencies are summarized below:
30 June 2011
HKD USD Total
Financial assets denominated in foreign currency -
Cash at bank and on hand 140,782,250 32,980,628 173,762,878
Receivables 1,792,843 38,086,468 39,879,311
142,575,093 71,067,096 213,642,189
Financial liabilities denominated in foreign currency -
Short-term borrowings 886,550,000 - 886,550,000
Payables 1,274,267 37,363 1,311,630
Long-term borrowings 280,500,000 - 280,500,000
1,168,324,267 37,363 1,168,361,630
31 December 2010
HKD USD Total
Financial assets denominated in foreign currency -
Cash at bank and on hand 166,707,323 8,850,378 175,557,701
Receivables 2,803,651 27,480,595 30,284,246
169,510,974 36,330,973 205,841,947
Financial liabilities denominated in foreign currency -
Short-term borrowings 835,550,000 - 835,550,000
Payables 4,392,328 3,580,977 7,973,305
Long-term borrowings 408,000,000 - 408,000,000
1,247,942,328 3,580,977 1,251,523,305
- 92 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (continued)
(1) Market risk (continued)
(a) Foreign exchange risk (continued)
As at 30 June 2011, if the currency had strengthened by 5 % against the HKD while all other
variables had been held constant, the Group’s net profit for the year would have been
approximately RMB 48,270,549 (2010: RMB 84,034,038).
(b) Interest rate risk
The Group's interest rate risk arises from bank borrowings including long-term borrowings and
debentures payable. Financial liabilities issued at floating rates expose the Group to cash flow
interest rate risk. Financial liabilities issued at fixed rates expose the Group to fair value interest
rate risk. The Group determines the relative proportions of its fixed rate and floating rate contracts
depending on the prevailing market conditions. As at 30 June 2011, all the Group’s interest bearing
borrowings were with floating rates.
Increases in interest rates will increase the cost of new borrowing and the interest expenses with
respect to the Group’s outstanding floating rate borrowings, and therefore could have a material
adverse effect on the Group’s financial position. The Group’s finance department at its
headquarters continuously monitors the interest rate position of the Group and makes decisions
with reference to the latest market conditions including turning to fixed interest financial liabilities or
adjusting the ratio of financial leverage.
For the first half of the year 2011, if interest rates on the floating rate borrowings had been 10%
higher/lower while all other variables had been held constant, the Group’s net profit would have
decreased/increased by approximately RMB 2,018,350 (Jan.-Jun.2010: approximately RMB
2,683,386).
(2) Credit risk
Credit risk is managed on a Group basis. Credit risk mainly arises from cash at bank and on hand,
accounts receivable, other receivables, notes receivable etc.
The Group expects that there is no significant credit risk associated with cash at bank since they
are deposited at state-owned banks and other medium or large size listed banks. Management
does not expect that there will be any significant losses from non-performance by these
counterparties.
- 93 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (continued)
(2) Credit risk (continued)
In addition, the Group has policies to limit the credit exposure on accounts receivable, other
receivables and notes receivable. The Group assesses the credit quality of and sets credit limits on
its customers by taking into account their financial position, the availability of guarantee from third
parties, their credit history and other factors such as current market conditions. The credit history of
the customers is regularly monitored by the Group. In respect of customers with a poor credit
history, the Group will use written payment reminders, or shorten or cancel credit periods, to
ensure the overall credit risk of the Group is limited to a controllable extent.
(3) Liquidity risk
Cash flow forecasting is performed by each subsidiary of the Group and aggregated by the Group’s
finance department in its headquarters. The Group’s finance department at its headquarters
monitors rolling forecasts of the Group's short-term and long-term liquidity requirements to ensure it
has sufficient cash and securities that are readily convertible to cash to meet operational needs,
while maintaining sufficient headroom on its undrawn committed borrowing facilities from major
financial institution so that the Group does not breach borrowing limits or covenants on any of its
borrowing facilities to meet the short-term and long-term liquidity requirements(Notes5 (31)).
The financial assets and liabilities of the Group at the balance sheet date are analysed by their
maturity date below at their undiscounted contractual cash flows :
30 June 2011
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial assets denominated
in foreign currency -
Cash at bank and on hand 923,185,625 - - - 923,185,625
Receivables 303,485,398 - - - 303,485,398
Available-for-sale financial 5,410,000 - - - 5,410,000
assets
1,232,081,023 - - - 1,232,081,023
Financial liabilities
denominated in foreign
currency -
Short-term borrowings 1,463,550,000 - - - 1,463,550,000
Payables 905,741,844 - - - 905,741,844
Long-term borrowings 280,500,000 - - - 280,500,000
2,649,791,844 - - - 2,649,791,844
- 94 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (continued)
(3) Liquidity risk (continued)
31 December 2010
Within 1 year 1 to 2 years 2 to 5 years Over 5 years Total
Financial assets denominated
in foreign currency -
Cash at bank and on hand 781,720,083 - - - 781,720,083
Receivables 238,496,318 - - - 238,496,318
Available-for-sale financial 6,640,000 - - - 6,640,000
assets
1,026,856,401 - - - 1,026,856,401
Financial liabilities
denominated in foreign
currency -
Short-term borrowings 1,225,550,000 - - - 1,225,550,000
Payables 507,567,419 - - - 507,567,419
Long-term borrowings 408,000,000 - - - 408,000,000
2,141,117,419 - - - 2,141,117,419
The borrowings of the group are mainly short term bank loans and therefore the net current liability
of the group was RMB1,411,573,581at 30 June 2011.
As at 30 June 2011, the internal undrawn bank facilities of the group are listed as below :
Within a year 2,299,900,000
1 year to 2 years 1,803,620,000
2 year to 3 years 400,000,000
Over 3 years 14,300,000
4,517,820,000
Undrawn facilities above can be used on the committed capital payment in the future (Notes 8)
Directors of the company confirmed that the group is able to extend the time limits of short term
borrowings and adequate facilities including facilities over a year and other financing resources to
refund existed short term borrowings, and adequate working capital for the need of operation.
Therefore the first half of the year 2011 financial statements have been prepared on going concern
basis by directors.
- 95 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
10 Financial instrument and risk (continued)
(4) Fair value
(a) Financial instruments not measured at fair value
Financial assets and liabilities not measured at fair value mainly represent receivables, short-term
borrowings, payables and Long-term borrowings.
The difference between the book value and fair value of the financial assets and liabilities not
measured at fair value is immaterial.
The fair value of long-term borrowings not quoted in an active market is the present value of the
contractually determined stream of future cash flows discounted at the rate of interest applied at
that time by the market to instruments of comparable credit status and providing substantially the
same cash flows on the same terms.
(b) Financial instruments measured at fair value
Based on the lowest level input that is significant to the fair value measurement in its entirety, the
fair value hierarchy has the following levels:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or
liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (that is,
unobservable inputs)
As at 30 June 2011 and 31 December 2010, the financial assets of the Group are all measured at
Level 1:
30 June 2011 31 December 2010
Financial assets -
Available- for- sale financial assets 5,410,000 6,640,000
11 Assets and liabilities denominated of fair value
Impairment
Current year fair Current year fair provision
31 December value changes in value changes in made during
2010 profit or loss equity the year 30 June 2011
Financial assets -
Available-for-sale financial assets 6,640,000 - (1,230,000) - 5,410,000
- 96 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
12 Financial assets and liabilities denominated in foreign currency
Impairment provision
31 December 2010 madeduring the year 30 June 2011
Financial assets -
Loans and receivables 205,841,947 - 213,642,189
Financial liabilities 1,251,523,305 Not applicable 1,168,361,630
13 Notes to the Company’s financial statements
(1) Accounts receivable
30 June 2011 31 December 2010
Accounts receivable 21,754,200 9,336,968
(a) The ageing of accounts receivable is analysed below:
30 June 2011 31 December 2010
Within 1 year 21,754,200 9,336,968
(b) Accounts receivable are analysed by categories as follows:
30 June 2011 31 December 2010
Book amount Provision for bad debts Book amount Provision for bad debts
% of total Provision for % of % of total Provision for % of
Amount balance bad debts balance Amount balance bad debts balance
Receivables that are individually
significant and individually
provided for bad debt 14,948,203 69% - - 6,608,924 71% - -
Receivables that are grouped
and provided for bad debt 6,805,997 31% - - 2,728,044 29% - -
21,754,200 100% - - 9,336,968 100% - -
The management classified the five largest accounts receivable as “receivables that are
individually significant”. They are all aged within one year and the management considered no
provision for bad debts is needed.
(c) As at 30 June 2011, no bad debt provision has been made for accounts receivable that are
individually significant or individually insignificant but subject to separate impairment assessment.
- 97 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(1) Accounts receivable (continued)
(d) The aging analysis of the receivables that are grouped and impaired is as follows:
30 June 2011 31 December 2010
Book amount Provision for bad debts Book amount Provision for bad debts
% of total Provision for % of % of total Provision for % of
Amount balance bad debts balance Amount balance bad debts balance
Within 1 year 6,805,997 31% - - 2,728,044 29% - -
(e) There are no receivables which are fully provided for bad debt or with significant impairment but
fully received or recoverable or with significant portion of received or recoverable during the year.
(f) No accounts receivable have been written off during the year.
(g) As at 30 June 2011, no balances included in above accounts receivable are due from the
shareholders of the Company who hold over 5% shares with voting rights (31 December 2010: Nil)
(h) As at 30 June 2011, the Group’s five largest accounts receivable balances are analysed as follows:
% of total
Relationship accounts
with the Group Amount Duration receivable balance
Customer F Third party 7,547,622 Within 1 year 35%
Customer G Third party 2,502,899 Within 1 year 12%
Customer H Third party 2,183,654 Within 1 year 10%
Customer I Third party 1,439,080 Within 1 year 7%
Customer J Third party 1,274,948 Within 1 year 5%
14,948,203 69%
(i) As at 30 June 2011 and 31 December 2010, there were no balances due from related parties.
(2) Other receivables
30 June 2011 31 December 2010
Loans to subsidiaries 179,246,932 364,704,313
Others 5,037,625 1,780,950
184,284,557 366,485,263
Less: Provision for bad debts (623,127) (623,127)
183,661,430 365,862,136
- 98 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(2) Other receivables (continued)
(a) The ageing of other receivables is analysed below:
30 June 2011 31 December 2010
Within 1 year 181,963,779 364,164,485
1 to 2 years 150 150
2 to 3 years 108,221 108,221
Over 3 years 2,212,407 2,212,407
184,284,557 366,485,263
(b) Other receivables are analysed by categories as follows:
30 June 2011 31 December 2010
Book amount Provision for bad debts Book amount Provision for bad debts
% of total Provision for % of % of total Provision for % of
Amount balance bad debts balance Amount balance bad debts balance
Receivables that are individually
significant and individually
provided for bad debt 181,397,398 98% (520,000) 0.3% 365,224,313 99.7% (520,000) 0.1%
Receivables that are grouped
and provided for bad debt 2,887,159 2% (103,127) 4% 1,260,950 0.3% (103,127) 8.2%
184,284,557 100% (623,127) 0.3% 366,485,263 100% (623,127) 0.2%
The management classified the five largest accounts receivable as “receivables that are
individually significant”. They are all aged within one year.
(c) As at 30 June 2011, the bad debt provision for other receivables that are individually significant or
individually insignificant but comparatively risky when grouped on the basis of similar credit risk
characteristics is made as follows:
Provision for bad
Book amount debts % of balance
Beingjing Tonggang Limited 520,000 (520,000) 100% (i)
(i) As at 30 June 2011, the above items were all aged above 3 years and bankrupted, thus full
provision has been made against them.
- 99 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(2) Other receivables (continued)
(d) The aging analysis for other receivables that are grouped and provided for bad debt is as follows:
30 June 2011 31 December 2010
Book amount Provision for bad debts Book amount Provision for bad debts
% of total Provision for % of % of total Provision for % of
Amount balance bad debts balance Amount balance bad debts balance
1 to 2 years 1,618,139 0.9% - - 150 0.0% (15) 10.0%
2 to 3 years 8,220 0.0% (15) 0.2% 108,221 0.0% (21,644) 20.0%
3 to 4 years 1,260,800 0.7% (103,112) 8.2% 1,152,579 0.3% (81,468) 7.1%
2,887,159 1.6% (103,127) 3.6% 1,260,950 0.3% (103,127) 8.2%
(e) There are no receivables which are fully provided for bad debt or with significant impairment but
fully received or recoverable or with significant portion of received or recoverable during the year.
(f) None of other receivables were written off during the year.
(g) As at 30 June 2011, the Company did not have any balances which were due to parties having 5%
or above shareholdings in the Company (31 December 2010: Nil).
(h) As at 30 June 2011, the Company’s five largest other receivable balances are analysed as follows:
Relationship with the % of total other
Group Amount Duration receivables balance
DGW Subsidiary of the Group 143,000,000 Within 1 year 77.6%
CSTC Subsidiary of the Company 35,186,932 Within 1 year 19%
WHK Subsidiary of the Company 1,630,466 Over 1 year 0.9%
CIFA Subsidiary of the Company 1,060,000 Within 1 year 0.6%
Beijing Tonggang Ltd Third party 520,000 Over 5 years 0.3%
181,397,398 98.4%
- 100 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(2) Other receivables (continued)
(i) Other receivables due from related parties are analysed as follows:
30 June 2011 31 December 2010
Relationship % of total Provision % of total
with the Group accounts for bad accounts Provision for
Amount receivables debt Amount receivables bad debt
DGW Subsidiary of the Group 143,000,000 77.6% - 325,800,000 88.9% -
Subsidiary of the - -
CSTC Company 35,186,932 19.1% 36,363,777 9.9%
WHK Subsidiary of the - -
Company 1,630,466 0.9% 1,480,536 0.4%
Subsidiary of the - -
CIFA Company 1,060,000 0.6% 1,060,000 0.3%
Controlled by the same
CPSB parent company 135,622 0.0% - 135,622 0.1% -
181,013,020 98.2% 364,839,935 99.6% -
(3) Long-term equity investments
30 June 2011 31 December 2010
Subsidiaries (a) 1,052,288,200 733,088,200
Joint venture(b) 779,055,546 763,011,159
Associates (c)- without quoted price 77,980,797 79,636,013
Other long-term equity investments (d) 17,037,500 17,037,500
1,926,362,043 1,592,772,872
Less: provision for impairment loss (e) (3,128,300) (3,128,300)
1,923,233,743 1,589,644,572
The long-term equity investments of the Company are not subject to restriction on conversion into
cash.
- 101 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(3) Long-term equity investments (continued)
(a) Subsidiaries
Provision Provision
Reason of for for impairment Current year
Accounting Investment 31 December Current year 30 June Interest Voting inconsistent interest impairment made in declared cash
method costs 2010 changes 2011 % right % % and voting right balance current year dividend
Shenzhen Chiwan Terminal Company - -
Limited Cost method 47,500,000 47,500,000 - 47,500,000 95% 95% Not applicable -
Shenzhen Chiwan International Freight - -
Agency Company Limited Cost method 5,500,000 5,500,000 - 5,500,000 100% 100% Not applicable -
Shenzhen Chiwan Harbour Container - -
Company Limited Cost method 70,920,000 70,920,000 180,000,000 250,920,000 60% 60% Not applicable -
Shenzhen Chiwan Transportation Company - -
Limited Cost method 7,000,000 7,000,000 - 7,000,000 75% 75% Not applicable -
Chiwan Wharf Holdings (H.K.) Limited Cost method 1,070,000 1,070,000 - 1,070,000 100% 100% Not applicable - - -
Shenzhen Chiwan Shipping and - -
Transportation Company Limited Cost method 6,000,000 6,000,000 18,000,000 24,000,000 60% 60% Not applicable -
Shenzhen Chiwan Trains-Grains Terminal - -
Company Limited Cost method 33,750,000 33,750,000 - 33,750,000 75% 75% Not applicable -
Chiwan Container Terminal Company - -
Limited Cost method 421,023,199 421,023,200 - 421,023,200 51% 51% Not applicable -
Dongguan Chiwan Wharf Company Limited Cost method 186,525,000 65,325,000 121,200,000 186,525,000 41.45% 41.45% Not applicable - - -
Dongguan Chiwan Terminal Company - -
Limited Cost method 75,000,000 75,000,000 - 75,000,000 25% 25% Not applicable -
733,088,200 319,200,000 1,052,288,200 - - -
- 102 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(3) Long-term equity investments (continued)
(b) Joint venture
Current year additions / decreases
Reason of Provision Provision
Share of net Cash dividends Other inconsistent for for impairment
Accounting nitial investment 31 December Additional profit or loss of announced by equity Interest Voting interest % and impairment made in current
method cos 2010 investment associates associates changes 30 June 2011 % right % voting right balance year
China Overseas Harbour Equity
Affairs(Laizhou)Co.,Ltd method 749,655,300 763,011,159 - 16,044,387 - - 779,055,546 40% 40% Not applicable - -
(c) Associates
Current year additions / decreases
Reason of Provision Provision
Initial Share of net Cash dividends Other inconsistent for for impairment
Accounting investment 31 December Additional profit or loss announced by equity Interest Voting interest % and impairment made in current
method cost 2010 investment of associates associates changes 30 June 2011 % right % voting right balance year
Cyber Network Equity method 1,875,000 12,869,241 - (296,450) (1,224,863) - 11,347,928 23.16% 23.16% Not applicable - -
CMML Equity method 80,000,000 66,766,772 - (133,903) - - 66,632,869 20% 20% Not applicable - -
79,636,013 - (430,353) (1,224,863) - 77,980,797 - -
- 103 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(3) Long-term equity investments (continued)
(d) Other long-term equity investment
Initial Current year Reason of Provision for Provision for Current year
Accounting investment 31 December additions / Interest Voting inconsistent interest impairment impairment made declared cash
method cost 2010 decreases 30 June 2011 % right % % and voting right balance in current year dividend
China Ocean Shipping Agency - -
(Shenzhen) Company Limited Cost method 13,510,000 13,510,000 13,510,000 15% 15% Not applicable - -
Shenzhen Petro-chemical Industry - -
(Group) Company Limited. Cost method 3,500,000 3,500,000 3,500,000 0.26% 0.26% Not applicable (3,117,800) -
Guangdong Guang Jian Group - -
Company Limited Cost method 27,500 27,500 27,500 0.02% 0.02% Not applicable (10,500) -
17,037,500 - 17,037,500 (3,128,300) - -
(e) Provision for impairment of long-term equity investments
31 December 2010 Current year additions Current year decreases 30 June 2011
Other long-term equity investment
-Shenzhen Petro-chemical Industry (Group) Company Limited (3,117,800) - - (3,117,800)
-Guangdong Guang Jian Group Company Limited (10,500) - - (10,500)
(3,128,300) - - (3,128,300)
- 104 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(4) Operating income and operating cost
Jan.-Jun.2011 Jan.-Jun.2010
Revenue from main operations 83,182,415 79,131,875
Revenue from other operations 10,292,954 4,836,263
93,475,369 83,968,138
Jan.-Jun.2011 Jan.-Jun.2010
Cost from main operations 61,435,910 62,573,536
Cost from other operations 834,235 354,283
62,270,145 62,927,819
(a) Revenue and cost from main operations
Jan.-Jun.2011 Jan.-Jun.2010
Revenue from Cost from main Revenue from Cost from main
main operations operations main operations operations
Load and unload operation 83,182,415 61,435,910 79,131,875 62,573,536
(b) Other revenue and cost
Jan.-Jun.2011 Jan.-Jun.2010
Revenue from Cost from Revenue from Cost from
other operations other operations other operations other operations
Lease income 6,108,217 834,235 1,999,985 354,283
Labor management income 2,543,920 - 1,862,704 -
Sales of materials 508,509 - 290,374 -
Documentation fee 314,264 - 300,229 -
Other logistic services in port 221,559 - 82,540 -
others 596,485 - 300,431 -
10,292,954 834,235 4,836,263 354,283
- 105 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(4) Operating income and operating cost (continued)
(c) Particulars of the top five customers in revenue
Revenue from top five customers of the Company totaled RMB48,376,291(Jan.-Jun.2010:
26,310,353), which accounted for 52% (Jan.-Jun.2010: 31%) of the total revenue from main
operations. Details are showed as below:
Revenue % of total revenue
from main operations
of the Company
Customer K 19,101,830 20%
Customer F 15,031,558 16%
Customer L 5,553,483 6%
Customer G 5,263,772 6%
Customer H 3,516,648 4%
48,467,291 52%
(5) Investment income
Jan.-Jun.2011 Jan.-Jun.2010
Investment income from investments under cost method of accounting - -
Investment income from investments under equity method of
accounting (a) 15,614,034 (2,060,572)
Loss from disposal of long-term investment - 29,767,257
Income from available-for-sale financial assets 360,000 310,000
Interest income for short-term loans to subsidiaries 8,207,310 4,890,146
24,181,344 32,906,831
(a) Investment income from long-term investment under equity method of accounting
Investment income from top five investees or individually accounted to over 5% of total profit are
analysed as below:
Jan.-Jun.2011 Jan.-Jun.2010 Reason of fluctuation
COHA(Laizhou) 16,044,387 - Newly joint venture in Jule 2010
CMIT (296,450) 939,805 Decrease in performance and Investment was
down
CMML (133,903) (3,000,377) Decrease in performance and Investment was
down
15,614,034 (2,060,572)
- 106 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
13 Notes to the Company’s financial statements (continued)
(6) Supplementary information to cash flow statements
(a) Reconciliation from the net profit to the cash flows from operating activities
Jan.-Jun.2011 Jan.-Jun.2010
Net profit 2,219,063 26,031,412
Add: Provisions for assets impairment - -
Depreciation of fixed assets 6,222,570 7,887,155
Depreciation/amortisation of investment
property 529,528 325,378
Amortisation of intangible assets 1,563,242 1,465,775
Amortisation of long-term prepaid expenses 89,810 135,324
Gains on disposal of fixed assets and
intangible assets (69,642) 15,735
Finance (income)/expenses 20,308,106 6,819,649
Investment income (24,181,344) (32,906,831)
(Increase)/decrease in deferred tax assets (1,962,481) 8,926,411
(Increase)/decrease in inventories 30,855 (26,316)
(Increase)/decrease in operating receivables (97,548,055) (58,601,495)
Increase/(decrease) in operating payables 239,055,918 197,513,012
Net cash flows from operating activities 146,257,570 157,585,209
(b) Net changes in cash and cash equivalents
Jan.-Jun.2011 Jan.-Jun.2010
Cash at end of year 619,059,211 647,142,458
Less: cash at beginning of year 494,364,355 453,407,958
Net increase/(decrease) in cash 124,694,856 193,734,500
- 107 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
1. Breakdown of extraordinary gains and losses
Jan.-Jun.2011 Jan.-Jun.2010
Net gain on disposal of non-current assets 3,010 1,950,715
Government grants in current year profit - 344,690
Receivables impairment reversal by individual - -
assessment
Other non-operating (expenses)/income, net 186,790 68,412
189,800 2,363,817
Tax effects (35,120) (518,077)
Minority interests effects (after tax) 9,663 (8,884)
164,343 1,836,856
The basis of preparation of net profit before extraordinary gains and losses reconciliation
According to the Interpretation Bulletin on Information Disclosure by Public Companies No [2008]
1 – Extraordinary gains and losses, extraordinary gain and losses are the gain and losses
resulted from the transactions/events which are not incurred by the operation of the entity, or,
though incurred by the operation, the nature, amounts or the frequency of such
transactions/events will lead to a misleading presentation of the normal performance and
profitability of the operation of the entity.
2. Return on equity and earnings per share
Weighted average return on Earnings per share
equity (%) Basic earnings per share Diluted earnings per share
Jan.-Jun.2011 Jan.-Jun.2010 Jan.-Jun.2011 Jan.-Jun.2010 Jan.-Jun.2011 Jan.-Jun.2010
Consolidated net profit attributable to
shareholders of the Company 7.78% 10.27% 0.401 0.479 0.401 0.479
Consolidated net profit excluding non-
routine items attributable to
shareholders of the Company 7.78% 10.21% 0.400 0.476 0.400 0.476
- 108 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
3 Notes for significant fluctuation of major accounts in financial statements
The following represents analysis to financial statements line items with a fluctuation above 30%
(inclusive), or take up 5% of total assets as at balance sheet date (inclusive) or 10% of net profit
for the reported period (inclusive):
Increase /
30 June 2011 31 December 2010 (decrease)(%)
Cash at bank and on hand 1 923,185,625 781,720,083 18%
Notes receivable 2 - 4,640,000 -100%
Accounts receivable 3 246,557,343 179,772,755 37%
Interest receivable 4 123,333 1,318,202 -91%
Dividends receivable 5 1,224,863 - 100%
Long-term equity
13%
investments 6 1,302,679,505 1,149,921,886
Fixed assets 7 2,568,332,792 2,652,957,915 -3%
Construction in progress 8 268,749,180 14,593,516 1742%
Intangible assets 9 1,055,003,337 1,074,247,819 -2%
Goodwill 10 15,244,795 10,858,898 40%
Other non-current assets 11 121,670,926 72,292,214 68%
Short-term borrowings 12 1,463,550,000 1,225,550,000 19%
Accounts payable 13 282,212,391 214,723,251 31%
Taxes payable 14 62,057,172 100,583,520 -38%
Dividends payable 15 511,876,650 213,351,043 140%
Current portion of non-
-31%
current liabilities 16 285,451,750 412,951,750
Jan.-Jun.2011 Jan.-Jun.2010
Revenue 17 844,983,574 833,761,885 1%
Cost of sales 18 (359,809,074) (336,890,090) 7%
General and administrative
39%
expenses 19 (76,912,960) (55,387,647)
Financial (expenses)/income
482%
- net 20 (28,605,944) (4,915,700)
Investment income 21 58,444,197 84,416,791 -31%
Non-operating income 22 287,103 2,469,174 -88%
Income tax expense 23 (66,792,459) (65,939,121) 1%
1. The major reason for the increase was net cash flows from operating activities and financing
activities were larger than net cash flows from investing activities.
2. It was mainly due to notes receivable were accepted.
3. It was mainly due to the credit term was extended.
4. It was due to interest on bank deposits was received.
5. It was due to dividend receivable by the Company for the year 2010 was recognized according to
the resolution of the Board of Directors of CMCCL.
- 109 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION TO FINANCIAL STATEMENTS
For The Six Months Ended 30 June 2011
(All amounts in RMB unless otherwise stated)
[English translation for reference only]
3 Notes for significant fluctuation of major accounts in financial statements(continued)
6. It was mainly due to the increase of investment income from joint ventures and associates.
7. Fixed assets were depreciated and the net value of fixed assets decreased as a result.
8. It was mainly due to berths of subsidiary CHCC were in construction.
9. Intangible assets were amortized and the net value of intangible assets decreased as a result.
10. It arose from the acquisition of the share in Hinwin Development Limited in May 2010,being the
difference of the cost of investment and the Group’s share of the fair value of the identifiable net
assets in Hinwin Development Limited.
11. DCTC paid for the use right of the land and coastline of Berth 4# and 5#.
12. The major reason was short-term loans were obtained to repay long-term loans.
13. It was mainly due to the increased accounts payable for berth construction of CHCC.
14. It was mainly due to the income tax of 2010 was paid .
15. The increase was due to dividends payable for A-share and B-share holders according to the
resolution of the Shareholders’ General Meeting.
16. The reason of fluctuation was the same as (12).
17. It was mainly due to the increase of operating renenue from normal operation of the subsidiary
DGW this year.
18. Expenses on material consumption increased as the labor cost and material prices rised up.
19. It was mainly due to the increased labor cost.
20. The significant increase was due to the increased loan interest rates and the loan principal .
21. It was mainly due to the company obtained gains on selling shares of an associated company in
the same period of last year .
22. The reason was CTCL disposed some fixed assets and recognized gains in the same period of
last year.
23. It was mainly due to the income tax rate increased and income tax preference to some berths
came to expiration in 2010.
- 110 -
