Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016
Stock code: 000022/200022 Stock name: Chiwan Wharf A/Chiwan Wharf B Announcement No. 2016-033
Shenzhen Chiwan Wharf Holdings Limited
Abstract of Semi-annual Report 2016
1. Important reminders
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read
the full text disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Shenzhen
Stock Exchange or any other website designated by the CSRC.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
Company profile
Stock name Chiwan Wharf A, Chiwan Wharf B Stock code 000022, 200022
Stock exchange Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Mr. Wang Yongli Ms. Hu Jingjing and Ms. Chen Dan
Tel. +86 755 26694222 +86 755 26694222
Fax +86 755 26684117 +86 755 26684117
E-mail cwh@szcwh.com cwh@szcwh.com
2. Financial highlights and change of shareholders
（1）Financial highlights
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the
accounting policy or correction of any accounting error?
□ Yes √ No
Reporting period Same period of last year YoY +/-（％）
Operating revenues (RMB) 904,809,652.24 880,788,008.78 2.73%
Net profit attributable to shareholders of the
266,535,506.97 241,977,372.34 10.15%
Company (RMB)
Net profit attributable to shareholders of the
Company after excluding extraordinary gains 264,716,384.31 243,763,081.71 8.60%
and losses (RMB)
Net cash flows from operating activities
368,657,243.80 365,522,514.71 0.86%
(RMB)
Basic EPS (RMB/share) 0.413 0.375 10.13%
Diluted EPS (RMB/share) 0.413 0.375 10.13%
Weighted average ROE (%) 5.88% 5.76% 0.12%
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Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016
As at the end of the
As at the end of last year +/-（％）
reporting period
Total assets (RMB) 6,626,761,280.09 6,913,772,876.99 -4.15%
Net assets attributable to shareholders of the
4,445,203,535.69 4,439,600,537.05 0.13%
Company (RMB)
（2） Shareholdings of the top 10 common shareholders
Unit: share
Total number of Total number of preference shareholders who
36,261 shareholders, including 26,079 A-share holders and 10,182
shareholders at the end had resumed their voting right at the end of the 0
B-share holders
of the reporting period reporting period (if any)
Shareholdings of top ten shareholders (all being non-restricted shareholders)
Percentag Number of Increase/decre Number of Type of
Pledged or
Nature of e of common shares ase in the common shares shares (A,
Name of shareholder frozen
shareholder shareholdi held at the reporting held at the B, H or
shares
ng period-end period period-end other)
CHINA NANSHAN DEVELOPMENT State-owned
32.52% 209,687,067 0 0 209,687,067 A-share
(GROUP) INC. corporation
Common
SHENZHEN MALAI STORAGE CO., LTD. domestic 25% 161,190,933 0 0 161,190,933 A-share
corporation
Foreign
KEEN FIELD ENTERPRISES LIMITED 8.58% 55,314,208 0 0 55,314,208 B-share
corporation
CMBLSA RE FTIF TEMPLETON ASIAN Foreign
7.43% 47,914,954 0 Unknown 47,914,954 B-share
GRW FD GTI 5496 corporation
3,769,399 A-share
Domestic
ZHU WUGUANG 0.62% 3,973,723 3,781,499 Unknown
individual
204,324 B-share
Foreign
CMBNA/STICHTING PENS FND ABP 0.54% 3,463,503 0 Unknown 3,463,503 B-share
corporation
BBH A/C VANGUARD EMERGING Foreign
0.41% 2,617,518 0 Unknown 2,617,518 B-share
MARKETS STOCK INDEX FUND corporation
Foreign
TEMPLETON ASIAN GROWTH FUND 0.39% 2,534,858 -122,994 Unknown 2,534,858 B-share
corporation
CHINA MERCHANTS SECURITIES (HK) State-owned
0.33% 2,111,462 175,886 Unknown 2,111,462 B-share
CO., LTD. corporation
Foreign
NORGES BANK 0.26% 1,660,562 579,100 Unknown 1,660,562 B-share
corporation
China Merchants Holdings (International) Company Limited (CMHI)* is a shareholder
of China Nanshan Development (Group) Inc.. Shenzhen Malai Storage Co., Ltd. and
Explanation on associated relationship or/and persons acting
Keen Field Enterprises Limited are both wholly-funded subsidiaries of CMHI. Other
in concert among the above-mentioned shareholders:
than that, the Company does not know whether the other non-restricted shareholders
are related parties or not.
* China Merchants Holdings (International) Company Limited has officially changed its name to “China Merchants Port Holdings
Company Limited” (“CMPort” for short) on 10 August 2016.
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Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016
（3）Shareholdings of the top 10 preference shareholders
□ Applicable √ Not applicable
We had no preference shares during the reporting period.
（4）Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable √ Not applicable
Our controlling shareholder did not change during the reporting period.
Change of the actual controller in the reporting period
□ Applicable √ Not applicable
Our actual controller did not change during the reporting period.
3. Discussion and analysis by the management
We are principally engaged in the handling, warehousing and transportation of containers and bulk cargoes, as
well as the provision of related services. We have 6 container berths and 7 bulk cargo berths in Chiwan Port
(Shenzhen), 3 container berths in Mawan Port (Shenzhen) and 5 bulk cargo berths in Machong Port (Dongguan).
We also have an investment in Laizhou Wharf in Shandong Province.
The first half of 2016 saw a weak recovery of the global economy and increased volatility in the financial market.
As China steadily pushed forward its supply-side structural reform and transformation, its economic growth
further slowed down to 6.7%. With sluggish demand, China’s total volume of foreign trade dropped 8.7% from
the same period of last year. Growth in the wharf industry was at a slow pace. The cargo throughput of China’s
coastal wharfs above the designated size went up 1.7% year on year.
The main indicators of our production and operation in the reporting period all registered growth: a cargo
throughput of 32.585 million tons (a year-on-year increase of 2.0%, slightly higher than the national average),
operating revenues of RMB905 million (a year-on-year increase of 2.73%), total profit of RMB384 million (a
year-on-year increase of 11.54%), and net profit attributable to the Company of RMB267 million (a year-on-year
increase of 10.15%).
1. Container handling business
Growth in the global container capacity significantly slowed down to 3.9%, but overcapacity remained. With
lower earnings for shipping companies, the shipping alliances were on the verge of a reshuffle. In the reporting
period, container throughput of main ports in South China declined 2.7% year on year. Ports in Shenzhen
achieved a container throughput of 11.436 million TEU, down 1.2% from a year earlier. Thanks to our efforts in
strengthening business expansion and looking for new shipping routes to minimize the impact of the alliance
reshuffle, we managed to maintain a stable number of shipping routes. Meanwhile, we upgraded our logistics
service by developing our barge business to attract cargos from the hinterland. As a result, the number of transit
containers from the Pearl River Delta rose 9.7% as compared to the same period of last year. Amid increasing
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Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016
local competition, we handled 2.444 million TEU of containers, up 5.5% on a year-on-year basis, accounting for
21% of the Shenzhen port market, 1 percentage point higher than the same period of last year.
2. Bulk cargo handling business
Due to a weak market and the government’s de-stocking policy, China’s imports of grain and fertilizer both
decreased in the first half of the year. We had to work hard to expand our inbound grain and feedstuff handling
business. And our effort was rewarded by a 2.0% increase in our grain and feedstuff throughput despite a 6.7%
decrease in the region’s total inbound grain and feedstuff, which means we are still a leader in the Pearl River
Delta in this respect. Meanwhile, due to a weak demand and high port capacity, our throughput of fertilizer
dropped 16.6% on a year-on-year basis. To sum up, we achieved a bulk cargo throughput of 8.567 million tons in
the reporting period, down 2.2% from a year earlier.
3. Supporting services and investment management
Our supporting services of tow truck, tugboat, customs clearance, barge and the like went on smoothly.
Meanwhile, our main investees such as China Overseas Harbour Affairs (Laizhou) Co., Ltd., China Merchants
Bonded Logistics Co., Ltd. and China Merchants Holdings (International) Information Technology Co., Ltd.
achieved greatly improved business results, producing much higher returns on our investments from a year earlier.
Our business highlights are set out as follows:
Reporting period Same period of last year
Main business indicator YoY +/-%
(January-June 2016) ( January-June 2015)
Total throughput (thousand tons) 32,585 31,956 2.0%
Among which:
2,444 2,316 5.5%
Container throughput (thousand TEU)
Bulk cargo throughput (thousand tons) 8,567 8,758 -2.2%
Hours charged for tow trucks (thousand hours) 547 539 1.5%
Hours charged for tugboats (hour) 16,790 15,609 7.6%
In the reporting period, we continued to push forward lean management by launching a management information
platform. We encouraged technique and process reform and accomplished multiple projects of technical
innovation. The internal control system was further improved in quality and efficiency. In addition, cost control
was strengthened. As a result, operating costs grew slower than the business volume did and our operating
efficiency was further increased.
In the second half of the year, recovery of the global economy is expected to continue to slow down, with more
downward pressure on China’s economy. Meanwhile, due to weak demand and currency pressure, China’s foreign
trade may remain sluggish, posing a great challenge to our business development. In terms of our container
handling business, growth is difficult because of the local competition and lower transit demand as a result of
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Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016
customers’ business adjustments. We will keep a watchful eye on new adjustments of liner alliances and adopt
flexible, effective business tactics to look for opportunities amid route adjustments. In the meantime, we will
upgrade our berths to cater for bigger and bigger ships and maintain stable business. Concerning our bulk cargo
handling business, we closely follow market and policy changes, push forward strategic coordination with other
local wharfs and try to maintain stability in key clients and rates. Meanwhile, we will accelerate the resource
upgrade of our Chiwan Wharf and the construction of warehousing facilities in our Machong Wharf so as to
increase the overall resource capability of our wharfs and help seek opportunities for business growth in the
second half of the year. As for internal management, we will strengthen control of operating risks, push forward
all the work as planned and focus on maintaining the level of earnings by increasing our resource use efficiency
and effective cost control.
No major changes occurred to the profit structure or sources of the Company during the reporting period.
YoY movements in financial highlights:
Unit: RMB
Reporting period Same period of last year YoY +/-% Main reasons for movements
Operating revenues 904,809,652.24 880,788,008.78 2.73% -
Operating costs 492,158,524.59 463,427,511.59 6.20% -
Administrative
81,947,868.71 84,201,871.92 -2.68% -
expenses
Interest cost decreased as the
average balance of
Financial costs 14,253,614.35 34,170,800.29 -58.29%
interest-bearing debts and the
average loan rate decreased
Expiration of the income tax
preferential policy (exemption for
first three years and half
Corporate income
49,661,006.76 34,458,531.16 44.12% reduction for second three years)
tax expenses
of subsidiary Dongguan Chiwan
Wharf Company Limited from
this year
R&D expenses 15,986,053.06 15,445,960.91 3.50% -
Net cash flows
from operating 368,657,243.80 365,522,514.71 0.86% -
activities
Net cash flows
Increase in dividends from joint
from investing 16,665,254.18 -12,068,746.10 238.09%
ventures and associates
activities
Net cash flows
from financing -664,817,669.11 -514,366,523.61 -29.25% Increase in debt repayments-net
activities
Net increase in
Decrease in cash flows from
cash and cash -277,266,096.67 -160,462,810.25 -272.79%
financing activities
equivalents
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Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016
4. Matters related to financial reporting
(1) Explain any changes in the accounting policies, accounting estimates and measurement methods as
compared with the financial reporting of last year
□ Applicable √ Not applicable
No such cases.
(2) Explain any retrospective restatement due to correction of significant accounting errors in the reporting
period
□ Applicable √ Not applicable
No such cases in the reporting period.
(3) Explain any changes in the consolidation scope as compared with the financial reporting of last year
□ Applicable √ Not applicable
No such cases in the reporting period.
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard
audit report” issued by the CPAs firm for the reporting period
□ Applicable √ Not applicable
For and on behalf of the Board
Shi Wei
Chairman
Shenzhen Chiwan Wharf Holdings Limited
Dated 26 August 2016
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