Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SEMI-ANNUAL REPORT 2016
Date of disclosure: 26 August 2016
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section I Important Reminders, Contents & Definitions
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior
management staff of Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred to as “the
Company”) warrant that this report is factual, accurate and complete without any false record,
misleading statement or material omission. And they shall be jointly and severally liable for that.
This report has been reviewed and approved at the Sixth Meeting of the Eighth Board of Directors.
Independent Director Su Qiyun was unable to attend the Meeting for his own reason, but he had
expressed his consent to all proposals for the Meeting and authorized Independent Director Li
Changqing to attend the Meeting, express opinions and sign relevant meeting documents on behalf
of him.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
Shi Wei, chairman of the Board of Directors, Zhang Fang, CFO, and Li Li, financial manager,
hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete.
The future plans, development strategies and some other forward-looking statements mentioned in
this report shall not be considered as virtual promises of the Company to investors. And investors
are kindly reminded to pay attention to possible risks.
Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn have been designated by the
Company for information disclosure. And all information about the Company shall be subject to
what’s disclosed on the aforesaid media. Investors are kindly reminded to pay attention to possible
risks.
This report is prepared in both Chinese and English. Should there be any discrepancy between the
two versions, the Chinese version shall prevail.
1
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Contents
Section I Important Reminders, Contents & Definitions .............................................. 1
Section II Company Profile ........................................................................................... 4
Section III Highlights of Accounting Data & Financial Indicators .............................. 6
Section IV Report of the Board of Directors................................................................. 8
Section V Significant Events ....................................................................................... 16
Section VI Changes in Shares & Particulars about Shareholders ............................... 27
Section VII Preference Shares ..................................................................................... 30
Section VIII Directors, Supervisors & Senior Management Staff .............................. 31
Section IX Financial Report ........................................................................................ 32
Section X Documents Available for Reference ........................................................... 32
2
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Definitions
Term Refers to Definition
Company, the Company or
Refers to Shenzhen Chiwan Wharf Holdings Limited
Chiwan Wharf
China Merchants Holdings (International) Company
CMHI or CMPort* Refers to Limited or China Merchants Port Holdings Company
Limited
CND Group Refers to China Nanshan Development (Group) Inc.
Malai Storage Refers to Shenzhen Malai Storage Co., Ltd.
Keen Field Enterprises Limited, a wholly-funded
KFEL Refers to subsidiary of China Merchants Holdings
(International)
The CSRC Refers to China Securities Regulation Commission
Shenzhen Bureau of China Securities Regulatory
Shenzhen CSRC Refers to
Commission
The Company Law Refers to The Company Law of the People’s Republic of China
The Securities Law of the People’s Republic of
The Securities Law Refers to
China
The Articles of Association of Shenzhen Chiwan
The Articles of Association Refers to
Wharf Holdings Limited
The cninfo website Refers to www.cninfo.com.cn
* 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.
3
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section II Company Profile
I Basic information about the Company
Stock name Chiwan Wharf A, Chiwan Wharf B Stock code 000022, 200022
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 深圳赤湾港航股份有限公司
Abbreviation (if any) 深赤湾
Company name in English
Shenzhen Chiwan Wharf Holdings Limited
(if any)
Abbreviation (if any) Chiwan Wharf
Legal representative Shi Wei
II Contact information
Board Secretary Securities Representative
Name Mr. Wang Yongli Ms. Hu Jingjing and Ms. Chen Dan
Address 8/F, Chiwan Petroleum Building, Shenzhen, PRC
Tel. +86 755 26694222 +86 755 26694222
Fax +86 755 26684117 +86 755 26684117
E-mail cwh@szcwh.com cwh@szcwh.com
III Other information
1. Ways to contact the Company
The registered address, office address and their zip codes, website address and email address of the
Company did not change during the reporting period. The said information can be found in the 2015
Annual Report.
2. About information disclosure and the place where this report is kept
The newspapers designated by the Company for information disclosure, the website designated by
the CSRC for disclosing this report and the place where this report is kept did not change during the
reporting period. The said information can be found in the 2015 Annual Report.
4
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
3. Changes in the registered information
The registration date and place of the Company, its business license No., taxation registration No.
and organizational code did not change during the reporting period. The said information can be
found in the 2015 Annual Report.
5
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section III Highlights of Accounting Data & Financial Indicators
I Major accounting data and financial indicators
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
Unit: RMB
Reporting period Same period of last year YoY +/-（％）
Operating revenues 904,809,652.24 880,788,008.78 2.73%
Net profit attributable to shareholders
266,535,506.97 241,977,372.34 10.15%
of the Company
Net profit attributable to shareholders
of the Company after excluding 264,716,384.31 243,763,081.71 8.60%
extraordinary gains and losses
Net cash flows from operating
368,657,243.80 365,522,514.71 0.86%
activities
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%
As at the end of the
As at the end of last year +/-（％）
reporting period
Total assets 6,626,761,280.09 6,913,772,876.99 -4.15%
Net assets attributable to shareholders
4,445,203,535.69 4,439,600,537.05 0.13%
of the Company
Number of the Company’s total shares of the trading day before the disclosure of this report:
The Company’s total shares of the trading day before the disclosure of this report (share) 644,763,730
Fully diluted EPS based on the latest total shares above (RMB/share) 0.413
II Differences between accounting data under domestic and overseas accounting standards
1. Differences of net profit and net assets disclosed in financial reports prepared under
international and Chinese accounting standards
No such differences
2. Differences of net profit and net assets disclosed in financial reports prepared under
overseas and Chinese accounting standards
No such differences
6
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
III Items and amounts of extraordinary gains and losses
Unit: RMB
Item Amount
Gains/losses on the disposal of non-current assets (including the offset part of the
-176,169.44
asset impairment provisions)
Government grants recognized in the current period, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to the 419,197.16
government’s unified standards
Non-operating income and expense other than the above 1,894,720.46
Less: Income tax effects 144,553.92
Minority interests effects (after tax) 174,071.60
Total 1,819,122.66
The Company did not shift in the reporting period any extraordinary gain/loss item as defined and
listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Extraordinary Gains and Losses to a recurrent gain/loss item.
7
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section IV Report of the Board of Directors
I Overview
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 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.
8
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
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 547 539 1.5%
hours)
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 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.
9
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
II Main business analysis
YoY movements in financial highlights
Unit: RMB
Same period of last
Reporting period YoY +/-% Main reasons for movements
year
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 interest-
Financial costs 14,253,614.35 34,170,800.29 -58.29%
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
No major changes occurred to the profit structure or sources of the Company during the reporting
period.
No future development planning stated in the Company’s prospectuses, asset reorganization reports
or other disclosed documents lasts till the reporting period.
Progress of previously disclosed operating plans in the reporting period:
In the reporting period, we adhered to the guideline of “Recognize the Situation, Based on the Main
Business and Create a Bright Future”, vigorously responded to challenges, and are rewarded by
sound growth in our business and earnings.
1. Main business of wharf services: Despite a severe environment, we tried our best to expand our
business and adopted proactive, flexible business tactics to deal with market changes. As a result,
our business volume has further increased as a percentage in the local wharf market.
2. Construction projects: All our construction projects went on as scheduled and have produced
stage results, laying a foundation for the improvement of our market competitiveness.
10
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
3. Management and innovation: We pushed forward delicacy management and innovative
management as a project and drew up an overall plan for informatization to strengthen the use of
the internet technology in our management step by step.
4. Investment and cooperation progress: We are now applying for approval for the cooperation
project between our Machong Wharf and Onoda, and at the same time looking for opportunities for
resource integration and business expansion as a way to optimize our business structure.
III Breakdown of main business
Unit: RMB
Increase/decrea Increase/decre
Increase/decrea
se of operating ase of gross
Gross se of operating
revenues over profit rate
Operating revenues Operating costs profit rate costs over the
the same over the same
(%) same period of
period of last period of last
last year (%)
year (%) year (%)
Classified by industry:
Cargo
844,465,634.31 458,877,279.34 45.66% 1.84% 4.56% -3.15%
handling
Classified by region:
Mainland
903,301,572.23 482,155,336.11 46.62% 2.77% 4.04% -1.38%
China
IV Core competitiveness analysis
Upon more than three decades of development, we have gathered a pool of experienced
professionals and an excellent managerial team, with our business management highly spoken of by
our shareholders and clients. With stable client sources and efficient business process flows, we are
considered a leader in the sector in terms of operating efficiency. As a mature listed port company
in China, we enjoy excellent brand recognition and a good market reputation.
Container berths: A R&D project of smart quayside handling has been set up and four quay cranes
have been put into trial operation in May 2016.
Bulk cargo berths: In June 2016, State I of Machong Wharf II was granted the Acceptance
Certificate of Completed Wharf Project by the Department of Transportation of Guangdong
Province. In the same month, Machong Wharf obtained an administrative permit from Huangpu
Customs to build bonded warehouses for public use with an area of 15,700 ㎡, available for
immediate use upon the Customs’ check and acceptance. In addition, the bulk grain silo expansion
project of Machong Wharf has started construction.
These improvements in our resource capacity will further increase our competitiveness and provide
guarantee for the continuous stability in our performance.
11
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
V Investment analysis
1. Investments in equities of external parties
（1） Investments in external parties
The Company did not invest in any external party during the reporting period.
（2）Equity-holdings in financial enterprises
The Company did not have any equity-holding in any financial enterprise during the reporting
period.
（3）Securities investments
Unit: RMB
Shareholdin
Number of Shareholdin Number of Gain/los
Variety Code of Initial g Closing
Name of shares held g percentage shares held s for Accountin Source of
of securitie investment percentage book
securities cost at period- at period- at period- reporting g title stock
securities s at period- value
begin begin end period
end
Corporate
Available-
shares allowed
Jiangsu for-sale
Stock 600377 1,120,000 1,000,000 0.02% 1,000,000 0.02% 8,340,000 400,000 financial for circulation
Expressway after share
assets
reform
Available-
Petrochemic for-sale Corporate
Stock 400032 3,500,000 780,000 0.26% 780,000 0.26% 382,200 - financial shares
al A1
assets
Available-
for-sale Corporate
Stock 400009 Guang Jian 1 27,500 20,000 0.02% 20,000 0.02% 17,000 - financial shares
assets
Total 4,647,500 1,800,000 -- 1,800,000 -- 8,739,200 400,000 -- --
（4）Shareholdings in other listed companies
No such cases in the reporting period.
2. Wealth management entrustment, derivative investments and entrustment loans
（1）Wealth management entrustment
No such cases in the reporting period.
（2）Derivatives investment
No such cases in the reporting period.
（3）Entrustment loans
No such cases in the reporting period.
12
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
3. Use of raised funds
No such cases in the reporting period.
4. Analysis to main subsidiaries and shareholding companies
Unit: RMB
Main
Company Company Registered Operating
Industry products Total assets Net assets Operating profit Net profit
name variety capital revenues
/services
Chiwan
Container Container USD95.3
Subsidiary Transportation 2,051,540,573.39 1,657,941,334.39 374,877,558.79 163,036,982.70 140,636,274.86
Terminal handling million
Co., Ltd.
Shenzhen
Chiwan
Container RMB288.2
Harbor Subsidiary Transportation 812,267,200.33 557,444,934.04 160,292,499.85 74,152,084.48 63,790,618.83
handling million
Container
Co. Ltd.
Dongguan
Chiwan Handling and
RMB450
Wharf Subsidiary Transportation storage of 1,005,139,221.34 730,874,263.97 137,362,432.71 43,763,939.53 32,992,167.94
million
Company bulk cargos
Limited
Dongguan Handling and
Chiwan warehousing RMB400
Subsidiary Transportation 967,207,126.88 507,822,895.26 92,866,618.38 20,270,052.29 20,275,070.03
Terminal of bulk million
Co., Ltd. cargoes
5. Significant projects of investments with non-raised funds
No such cases in the reporting period.
VI Performance forecast for January-September 2016
Not applicable
VII Explanation given by the Board of Directors and the Supervisory Committee regarding
any “non-standard auditor’s report” issued by the CPAs firm for the reporting period
Not applicable
VIII Explanation given by the Board of Directors regarding any “non-standard auditor’s
report” issued for last year
Not applicable
IX Implementation of profit allocation during the reporting period
Pursuant to the guiding spirit of the Notice of CSRC on Further Implementing Matters Related to
Cash Dividends of Listed Companies, the Notice of CSRC Shenzhen Bureau on Fully
Implementing the Notice of CSRC on Further Implementing Matters Related to Cash Dividends of
Listed Companies (Shen-Zheng-Ju-Gong-Si-Zi (2012) No. 43), the Company has revised some
13
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
articles in its Articles of Association in relation to the profit distribution policy, which involves the
specific policy, the decision-making procedure and mechanism, the adjustment and implementation
of the profit distribution policy, profit distributed to foreign shareholders and other aspects. The
revised Articles of Association of the Company was reviewed and approved on the 5th Special
Session of the 7th Board of Directors for 2012 on 3 Aug. 2012, and later on the 1st Special
Shareholders’ General Meeting for 2012 on 21 Aug. 2012. During the reporting period, the
Company executed the profit allocation policy in strict compliance with the revised Articles of
Association, and it did not again alter the profit allocation policy, especially the cash dividend
policy.
As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the
Company (without subsidiaries) for 2015 stood at RMB264,241,215.72 and the cumulative
distributable profit at RMB703,644,298.05.
1) According to the Company Law and the Articles of Association of the Company, the Company
may stop making statutory surplus reserve when its accumulative amount reaches 50% of the
registered capital. The accumulative statutory surplus reserve of the Company (without subsidiaries)
stood at RMB520,074,434.56 for 2015, equal to 80.66% of the registered capital. Therefore, the
Company did not plan to draw surplus reserve from retained profit for 2015.
2) As planned, based on the total 644,763,730 shares as at the end of 2015, a cash dividend of
RMB4.10 (tax included) was to be distributed for every 10 shares, with a total of
RMB264,353,129.30 being distributed.
After the aforesaid allocations, the retained profit of the Company (without subsidiaries) stood at
RMB439,291,168.75.
Implementation of the said profit allocation plan was completed on 1 August 2016, with the book
closure date for A-shares and the last trading date for B-shares both on 27 July 2016 and the ex-
dividend date on 28 July 2016.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and the resolution of
Yes
the general meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors fulfilled their responsibilities and played their due role. Yes
Minority shareholders have the chance to fully express their opinion and desire and
Yes
their legal rights and interests were fully protected.
In adjustment or alteration of the cash dividend policy, the conditions and
Yes
procedure were in compliance with regulations and transparent.
X Preplan for profit distribution and turning capital reserve into share capital for the
reporting period
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into
share capital for the reporting period.
14
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
XI Particulars about researches, visits and interviews received in this reporting period
Place of Way of Main discussion and materials
Time of reception Visitor type Visitor
reception reception provided by the Company
Basic operation situation of the
Company Individual
January-June 2016 By phone Individual Company, investments made and its
Office investors
financial position
15
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section 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. There is no difference between the
actual circumstances of the Company and the Company Law and the CSRC rules.
II Lawsuits
No significant lawsuits or arbitrations in the reporting period.
III Media’s queries
No such cases in the reporting period.
IV Bankruptcy reorganization
No such cases in the reporting period.
V Asset transactions
1. Purchase of assets
No such cases in the reporting period.
2. Sale of assets
No such cases in the reporting period.
3. Business combination
No such cases in the reporting period.
VI Implementation of equity incentive and its influence
The Company did not make or carry out any equity incentive plan during the reporting period.
16
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
VII Significant related-party transactions
1. Related-party transactions concerning routine operation
Proportion Appro
Obtainable
in the total ved
Content Transactio Over market price
Related amountsof transa Mode of Disclo
Type of the s of the Pricing Transaction n amount approv for the Disclosu
transacti Relation transaction ction settleme sure
transaction transacti principle price (RMB) (RMB’000 ed line transaction of re date
on party s of the line nt index
on ) or not the same kind
same kind (RMB
(RMB)
(%) ’000)
See
Rent
http://
CND Shareho Land Mutual payment 2016-
Lease 32,410,191.19 32,410.19 76.67% 80,000 No 32,410,191.19 www.c
Group lder use fee negotiation by 03-28
ninfo.c
month
om.cn
Total -- -- 32,410.19 -- 80,000 -- -- -- -- --
Details about return of large-amount sales N/A
Where the Company classifies and estimates the total amount of routine related-party transactions for the
N/A
reporting period, explain the actual implementation during the reporting period (if any)
Explain why the transaction price is greatly different from the market price (if applicable) N/A
2. Related-party transactions arising from acquisition and sale of assets
No such cases in the reporting period.
3. Related-party transactions arising from joint investment in external parties
No such cases in the reporting period.
4. Credits and liabilities with related parties
No such cases in the reporting period.
5. Other significant related-party transactions
Unit: RMB’000
Whether
there was Increase Decrease
Type of Reason for non- Opening in the in the Closing
Related party Relation
credit/liability credit/liability operating balance reporting reporting balance
capital period period
occupation
Director of
China
the Credit
Development
Company receivable
Finance Bank deposits No 55,649.1 54,310.1 109,700.00 259.2
as its vice from the
Company
board related party
Ltd.
chairman
17
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Website index to the interim announcement on the related transaction above
Disclosure date of the Website where the interim announcement
Title of the interim announcement
interim announcement was disclosed
Announcement on Expected Routine
2016-03-28 http://www.cninfo.com.cn
Related-Party Transactions for 2016
VIII Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
No such cases in the reporting period.
IX Significant contracts and fulfillment thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
No such cases in the reporting period.
(2) Contracting
No such cases in the reporting period.
(3) Leasing
No such cases in the reporting period.
2. Guarantees provided by the Company
No such cases in the reporting period.
3. Other significant contracts
No such cases in the reporting period.
4. Other significant transactions
No such cases in the reporting period.
18
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
X Commitments made by the Company or shareholders holding over 5% of the Company’s
shares in the reporting period, or such commitments carried down into the reporting period
Time of Period of
Commitme Commitme
Contents making commitme Fulfillment
nt type nt maker
commitment nt
CND Group proposed in Mar. 2009
to the Company ,
which was reviewed and approved
in the general meeting of the
Company in May 2009. The Board
of Directors of the Company was
authorized to formulate and carry
out an equity incentive plan at a
proper timing according to
applicable laws and regulations.
In Jun. 2014, according to jointly
personnel so that the interests of the
promulgated by the State-owned
management and all the shareholders can
Share Assets Supervision and
coincide, CND made a commitment to
reform CND Administration Commission of the
entrust, through the general meeting of the April 2006 Standing
commitmen Group State Council and the Ministry of
Company, the Board of Directors of the
t Finance, as well as promulgated by CSRC,
reform according to applicable laws and
the equity incentive plan could not
regulations.
be successfully formulated due to
policy and regulation changes, as
well as some restrictions. Therefore,
the Company has decided not to
formulate and carry out the equity
incentive plan for now. The Board
of Directors will continue to follow
and study relevant policies and
regulations, and reconsider
formulating and carrying out a new
equity incentive plan according to
the actual situation of the Company
and executing the decision-making
procedure.
19
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Concerning
horizontal
competitio
n, it is
promised
that the
horizontal
1. Commitments made by China Merchants
competitio
Holdings (International) about share
n issue will
custody;
China be solved
2. Commitment made by China Merchants
Merchants through
Holdings (International) about guaranteeing
Holdings ways such
the independency of the Company;
(Internatio 2012-09-17 as asset In the process of execution
Commitment nal) 3. Commitment made by China Merchants
reorganizat
in the Company Holdings (International) about horizontal ion in the
acquisition competition; and
Limited coming 3-5
report or the 4. Commitment made by China Merchants
report on years. And
Holdings (International) about regulating
equity the other
related-party transactions
changes three
commitme
nts are
subject to
the share
custody
period.
1. Commitment made by Malai Storage
Whenever
about guaranteeing the independency of the
Malai
Company;
Malai Storage
2. Commitment made by Malai Storage 2012-12-27 In the process of execution
Storage holds the
about horizontal competition; and
Company’s
3. Commitment made by Malai Storage
shares
about regulating related-party transactions
CND Group irrevocably and
unconditionally agrees that if Chiwan
Wharf suffers from any loss, expense,
liability, demanded compensation or law
suit due to any actual or potential illegality 2001-03-20;
CND or unenforceability in any land use 2003-06-18;
Standing In the process of execution
Group agreement or relevant documents signed or 2004-09-29
to be signed by CND Group or other related
problems, CND Group promises to give full
Other
immunity to the recipient party of the land
commitmen
use right and its inheritor and the recipient
ts made to
person regarding the aforesaid matters.
minority
If the Company cannot pay interest on time,
shareholder
pay principals upon maturity or is involved
s
in any violation, it shall at least take the Whenever
following measures: any of the
1. Not to distribute profit to shareholders; corporate
The 2013-10-18
2. Suspend capital outlay projects such as bonds of In the process of execution
Company
significant outward investments or mergers; “13
3. Reduce or stop salaries and bonuses for Chiwan
directors and senior management staff; and 01” exists
4. Not to remove the persons held chiefly
responsible.
Executed on time or not Yes
Explain in detail specific reasons for failing to fulfill commitment and plan for
N/A
next step in case of commitment unfulfilled on time
20
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
XI Engagement and disengagement of the CPAs firm
This semi-annual report has not been audited by a CPAs firm.
XII Punishments and rectifications
No such cases in the reporting period.
XIII Delisting risk due to violation of laws or regulations
No such cases in the reporting period.
XIV Other significant events
In the reporting period, the Company disclosed the following significant events on Securities Times,
Ta Kung Pao (HK) and www.cninfo.com.cn:
Announcement
Title Date
No.
Announcement on Resolutions of the First Special Meeting of the Eighth
2016-001 2016-01-06
Board of Directors in 2016
2016-002 Notice of the First Special General Meeting in 2016 2016-01-06
2016-003 Announcement on Business Volume Data of December 2015 2016-01-09
Indicative Announcement on Convening the First Special General Meeting in
2016-004 2016-01-18
2016
2016-005 Announcement on Resolutions of the First Special General Meeting in 2016 2016-01-23
Announcement on Resolutions of the Second Special Meeting of the Eighth
2016-006 2016-01-23
Board of Directors in 2016
2016-007 Announcement on Business Volume Data of January 2016 2016-02-05
2016-008 Announcement on Abnormality of Stock Price 2016-02-19
2016-009 Announcement on Business Volume Data of February 2016 2016-03-10
Announcement on Resolutions of the Fifth Meeting of the Eighth Board of
2016-010 2016-03-28
Directors
Announcement on Resolutions of the Fifth Meeting of the Eighth Supervisory
2016-011 2016-03-28
Committee
2016-012 Abstract of Annual Report 2015 2016-03-28
2016-013 Announcement on Expected Routine Related-Party Transactions for 2016 2016-03-28
21
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
2016-014 Announcement on Business Volume Data of March 2016 2016-04-08
Announcement on the Due Payment of 2015 Phase I Short-term Financing
2016-015 2016-04-15
Bonds
Announcement on Follow-up Rating Result of Corporate Bond “13 Chiwan
2016-016 2016-04-23
01”
Announcement on Resolutions of the Third Special Meeting of the Eighth
2016-017 2016-04-27
Board of Directors in 2016
2016-018 Quarter One Report 2016 2016-04-27
Announcement on Joint Investment with Related Party in Haixing Onoda
2016-019 2016-04-27
Project
2016-020 Notice of Annual General Meeting 2015 2016-04-27
2016-021 Announcement on Business Volume Data of April 2016 2016-05-10
2016-022 Indicative Announcement on Convening Annual General Meeting 2015 2016-05-28
2016-023 Announcement on Resolutions of Annual General Meeting 2015 2016-06-07
Announcement on the Due Payment of 2015 Phase III Short-term Financing
2016-024 2016-06-08
Bonds
2016-025 Announcement on Business Volume Data of May 2016 2016-06-13
XV Corporate bonds
Corporate bonds publicly offered and listed on a stock exchange, which were undue before the
approval date of this report or were due but could not be redeemed in full: Yes
1. Basic information about the corporate bonds
Outstanding
Interest Way of principal and
Name Abbr. Code Issue date Due date balance
rate interest payment
(RMB’000)
Interest payment once a
Corporate Bonds
year, principal
2013 (Phase I) of
13 Chiwan repayment in lump sum
Shenzhen 112192 2013-10-18 2018-10-18 500,000 5.60%
01 upon maturity together
Chiwan Wharf
with the last payment of
Holdings Limited
interest
Shenzhen Stock Exchange
Exchange place for the listing or transfer of the corporate bonds
Arrangements regarding investor eligibility N/A
Still before the interest payment day
Interest and principal payment during the reporting period
of the year
Execution of special terms added to the corporate bonds such as the
issuer/investor option terms, the convertible terms, etc. in the reporting period N/A
(if applicable)
22
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
2. Bonds trustee manager and credit rating agency
Bonds trustee manager:
38-45/F, Tower A,
China Jiangsu Building, Xiao Diheng,
Merchants Office Yitian Rd., Futian Contact Zhan 0755-
Name Tel.
Securities address District, Shenzhen, person Haiming, 82943666
Co. Ltd. Guangdong Xiao Zhe
Province, P.R.China
Credit rating agency that tracked and rated the corporate bonds during the reporting period:
Office 8/F, Anji Building, 760 Xizang South Rd.,
Name China Chengxin Securities Rating Co., Ltd.
address Huangpu District, Shanghai
If the bonds trustee manager or the credit rating agency was changed in
the reporting period, give the reason for change, executed procedure, N/A
influence on investors’ interests, etc. (if applicable)
3. Use of funds raised through the corporate bonds
RMB500 million was raised through these corporate bonds, of which
Use of funds raised through the RMB281 million was used to repay HK dollar bank loans of the
corporate bonds and the procedure Company and its wholly-owned subsidiary—Shenzhen Chiwan Wharf
executed Container Co., Ltd., and the rest was used to supplement the working
capital.
Closing balance (RMB’000) 0
Operation of the raised funds special The special account has been canceled when the raised funds was used
account up.
Whether the use of the raised funds is
in line with the usage, use plan and Yes
other terms promised in the prospectus
4. Rating of the corporate bonds
On 23 April 2016, China Chengxin Securities Rating Co., Ltd. carried out tracking rating on the
credit condition of Corporate Bonds “13 Chiwan 01” issued by the Company and issued the
Tracking Rating Report of the Corporate Bonds 2013 (Phase I) of Shenzhen Chiwan Wharf
Holdings Limited (2016) (No.: XPWHZ [2016] Tracking No. 031), maintaining the credit rating of
“13 Chiwan 01” at “AA+” and the main body credit rating of the Company at “AA+” with a stable
outlook.
5. Credit enhancement mechanism, debt repayment plan and other debt repayment
safeguards for the corporate bonds
Not applicable
6. Bond holders’ meetings convened in the reporting period
In the first half of 2016, no such events occurred that required a bond holders’ meeting.
7. Duty performance of the bonds trustee manager in the reporting period
China Merchants Securities Co. Ltd. is the trustee manager of the Company’s Bond “13 Chiwan
01”. During the reporting period, it disclosed the Report on Trustee Management of Corporate Bond
23
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
“13 Chiwan 01” (2015) in June 2016. For details, please refer to the relevant Company
announcement disclosed on www.cninfo.com.cn dated 22 June 2016.
8. Accounting and financial highlights of the Company as at the end of the reporting period
and last year (or as of the reporting period and the same period of last year)
Unit: RMB’000
As at the end of the As at the end of
Item +/- (%) Reason for movement
reporting period last year
Liquidity ratio 100.16% 84.86% 15.30% -
Asset-liability ratio 19.98% 24.36% -4.38% -
Quick ratio 97.70% 83.27% 14.43% -
Same period of last
Reporting period +/- (%)
year
Interest cost decreased as
the average balance of
Times interest earned
243.00 140.00 73.57% interest-bearing debts and
(EBITDA)
the average loan rate
decreased
Loan repayment ratio 100.00% 100.00% - -
Interest coverage ratio 100.00% 100.00% - -
9. Asset right limitations at the end of the reporting period
Not applicable
10. Overdue debts
Not applicable
11. Interest and principal payment for other bonds and debt financing instruments in the
reporting period
We offered our 2015 Phase I short-term financing bonds to the public via the national inter-bank
bond market on 10 April 2015, with an amount of RMB0.3 billion, a term of 366 days, an interest
rate of 4.9% and lump-sum payment terms of the interest and principal upon maturity. And the
interest and principal have been paid on time on the due date of 13 April 2016.
We offered our 2015 Phase III SCP to the public via the national inter-bank bond market on 8
September 2015, with an amount of RMB0.2 billion, a term of 268 days, an interest rate of 3.44%
and lump-sum payment terms of the interest and principal upon maturity. And the interest and
principal have been paid on time on the due date of 4 June 2016.
12. Bank credit lines and their use and repayment in the reporting period
As at the end of the first half of 2016, we had bank credit lines of RMB990.94 million in total. We
enjoy a good reputation and repay our bank loans on time, with no such cases as loan extension,
reduction or exemption.
24
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
13. Execution of agreements and promises in the bond prospectus in the reporting period
Not applicable
14. Relevant significant events in the reporting period
See “XIV Other significant events” in “Section V Significant Events”.
15. Guarantor for the corporate bonds
Not applicable
XVI Internal control progress
Pursuant to the “Internal Control Rules for Enterprises” and the mating guidelines, the Company
officially implemented internal control, with details as follows:
1. The Company updated the name list of the members of internal control task groups. The
chairman of the board was the head of the internal control project, with divisional leaders and
departmental leaders as the members for the internal control steering committee. At the Company
level, important professionals of all functional departments were the members for the task group. At
the level of a subsidiary, the task group was headed by the general manager of the subsidiary, with
important professionals in the subsidiary as the members for the task group.
2. The work plan for internal control of 2016 was worked out.
3. The subjects and internal control processes included in the internal control improvement task for
2016 were determined. According to its own business characteristics and importance and based on
the internal control process improvement results of the previous years, subjects included in the
internal control improvement task for 2016 were: the Company, Chiwan Container Terminal Co.,
Ltd., Shenzhen Chiwan Wharf Container Co. Ltd., Dongguan Chiwan Wharf Company Limited and
Dongguan Chiwan Terminal Company Limited. Internal control processes included in the internal
control improvement and self-evaluation task for 2016 were: the organizational structure,
development strategy, human resources, social responsibilities, corporate culture, capital operation,
procurement, asset management, marketing, R&D, engineering projects, guarantees, outsourcing,
financial reporting, overall budget, contract management, internal information transmission and the
information system.
4. Work flow charts were sent down to confirm the specific work and schedules for the members of
the internal control task groups.
5. External and internal trainings were organized for members of the internal control task groups.
6. The internal control task groups of the Headquarters and the subsidiaries have reviewed the flow
chart risk matrix assessment of last year, and have re-described work flows within the internal
control improvement scope according to business changes this year so as to formulate an internal
control risk matrix and a core flow chart for the Company for 2016.
7. The internal control task groups of the Headquarters and the subsidiaries have carried out a walk-
through test on the effectiveness of the internal control design to look for defects.
25
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
As reviewed and approved at the Fifth Meeting of the Eighth Board of Directors on 24 March 2016
and later at the 2015 Annual Shareholders’ General Meeting on 6 June 2016, Deloitte Touche
Tohmatsu Certified Public Accountants LLP has been hired as the internal control auditor for the
Company for 2016.
In line with the schedule for the internal control improvement plan for 2016, the Company has
finished all the preparation work. The internal control project is right on schedule, with no
derivation or delay.
26
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section VI Changes in Shares & Particulars about Shareholders
I Changes in shares
Unit: share
Before Increase/decrease (+, -) After
Capitalization
New Bonus
Number Percentage of capital Other Subtotal Number Percentage
shares shares
reserve
- -
431,094 0.07% 0 0 0 305,100 0.05%
I Restricted shares 125,994 125,994
1. Shares held by
0 0% 0 0 0 0 0 0 0%
the State
2. Share held by
state-owned 0 0% 0 0 0 0 0 0 0%
corporations
3. Shares held by
- -
other domestic 431,094 0.07% 0 0 0 305,100 0.05%
125,994 125,994
investors
Among which:
Shares held by
0 0% 0 0 0 0 0 0 0%
domestic
corporations
Shares held by
- -
domestic 431,094 0.07% 0 0 0 305,100 0.05%
125,994 125,994
individuals
4. Shares held by
0 0% 0 0 0 0 0 0 0%
foreign investors
Among which:
Shares held by
0 0% 0 0 0 0 0 0 0%
foreign
corporations
Sha
res held by foreign 0 0% 0 0 0 0 0 0 0%
individuals
II Non-restricted
644,332,636 99.93% 0 0 0 125,994 125,994 644,458,630 99.95%
shares
1. Renminbi
464,866,999 72.10% 0 0 0 -949 -949 464,866,050 72.10%
common shares
2. Domestically
listed foreign 179,465,637 27.83% 0 0 0 126,943 126,943 179,592,580 27.85%
shares
3. Overseas listed
0 0% 0 0 0 0 0 0 0%
foreign shares
4. Others 0 0% 0 0 0 0 0 0 0%
III Total shares 644,763,730 100% 0 0 0 0 0 644,763,730 100%
Reasons for share changes:
1. Director changes: changes in the shareholdings of director who left and newly appointed director;
2. Increase in the shareholding of senior executive.
27
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
II Total number of shareholders and their shareholdings
Unit: share
Total number of
Total number of preference shareholders
shareholders at the 36,261 shareholders, including 26,079 A-share holders and
who had resumed their voting right at the 0
end of the reporting 10,182 B-share holders
end of the reporting period (if any)
period
Shareholdings of top ten shareholders (all being non-restricted share holders)
Percenta Number of Increase/dec Number of Type of
Pledged
Nature of ge of common rease in the common shares shares (A,
Name of shareholder or frozen
shareholder sharehold shares held at reporting held at the B, H or
shares
ing the period-end period period-end other)
State-
CHINA NANSHAN DEVELOPMENT
owned 32.52% 209,687,067 0 0 209,687,067 A-share
(GROUP) INC.
corporation
Common
SHENZHEN MALAI STORAGE CO.,
domestic 25% 161,190,933 0 0 161,190,933 A-share
LTD.
corporation
KEEN FIELD ENTERPRISES Foreign
8.58% 55,314,208 0 0 55,314,208 B-share
LIMITED corporation
CMBLSA RE FTIF TEMPLETON Foreign
7.43% 47,914,954 0 Unknown 47,914,954 B-share
ASIAN 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
TEMPLETON ASIAN GROWTH Foreign
0.39% 2,534,858 -122,994 Unknown 2,534,858 B-share
FUND corporation
State-
CHINA MERCHANTS SECURITIES
owned 0.33% 2,111,462 175,886 Unknown 2,111,462 B-share
(HK) 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
Explanation on associated relationship or/and persons shareholder of China Nanshan Development (Group) Inc.. Shenzhen Malai
acting in concert among the above-mentioned Storage Co., Ltd. and Keen Field Enterprises Limited are both wholly-funded
shareholders: subsidiaries of CMHI. Other than that, the Company does not know whether
the other non-restricted shareholders are related parties or not.
None of the top ten shareholders of the Company carried out any agreed buy-back in the reporting
period.
III Change of the controlling shareholder or the actual controller
No such cases in the reporting period.
IV Any shareholding increase plan proposed or implemented by any shareholder or its act-in-
concert party during the reporting period
No such cases in the reporting period to the best knowledge of the Company.
28
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section VII Preference Shares
□ Applicable √ Not applicable
The Company had no preference shares in the reporting period.
29
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section VIII Directors, Supervisors & Senior Management Staff
I Changes in the shareholdings of directors, supervisors and senior management staff
Unit: share
Increased Decrease Restricted
Opening Closing Opening Closing
Incumbent/ shares of d shares shares
Name Office title shares shares restricted restricted
former the of the granted in
held held shares held shares held
period period the period
Board
Shi Wei Incumbent 0 0 0 0 0 0 0
Chairman
Lv
Director Incumbent 0 0 0 0 0 0 0
Shengzhou
Li Yubin Director Incumbent 0 0 0 0 0 0 0
Pan Ke Director Incumbent 0 0 0 0 0 0 0
Qu Jiandong Director Incumbent 112,544 0 0 112,544 0 0 0
Zhang
Director Incumbent 74,282 0 0 74,282 0 0 0
Jianguo
Independent
Yuan Yuhui Incumbent 14,040 0 0 14,040 0 0 0
Director
Independent
Su Qiyun Incumbent 0 0 0 0 0 0 0
Director
Li Independent
Incumbent 0 0 0 0 0 0 0
Changqing Director
Supervisory
Yu Shixin Board Incumbent 0 0 0 0 0 0 0
Chairman
Wen Ling Supervisor Incumbent 0 0 0 0 0 0 0
Zhao Jianli Supervisor Incumbent 0 0 0 0 0 0 0
Ni Keqin Supervisor Incumbent 29,211 0 0 29,211 0 0 0
Zheng
Supervisor Incumbent 0 0 0 0 0 0 0
Linwei
General
Zhao Qiang Incumbent 15,103 0 0 15,103 0 0 0
Manager
Vice
Nie Qi General Incumbent 85,409 3,000 0 88,409 0 0 0
Manager
Vice
Zhao
General Incumbent 64,954 0 0 64,954 0 0 0
Chaoxiong
Manager
Vice
General
Wang
Manager Incumbent 4,985 0 0 4,985 0 0 0
Yongli
and Board
Secretary
Zhang Fang CFO Incumbent 3,267 0 0 3,267 0 0 0
30
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
II Changes in directors, supervisors and senior management staff
Type of
Name Position Date of change Reason for change
change
The Proposal on Director Adding was considered and
approved at the First Special General Meeting 2016 and Ms.
Shi Wei was elected with cumulative votes as a director for the
Eighth Board of Directors of the Company.
Board
Shi Wei Elected 2016-01-22 The Proposal on Election of Chairman for the Eighth Board of
Chairman
Directors was considered and approved at the Second Special
Meeting the Eighth Board of Directors in 2016 and Director
Shi Wei was elected as the Chairman for the Eighth Board of
Directors of the Company.
The Proposal on Director Adding was considered and
Lv approved at the First Special General Meeting 2016 and Mr.
Director Elected 2016-01-22
Shengzhou Lv Shengzhou was elected with cumulative votes as a director
for the Eighth Board of Directors of the Company.
The Proposal on Director Adding was considered and
approved at the First Special General Meeting 2016 and Mr.
Qu Jiandong Director Elected 2016-01-22
Qu Jiandong was elected with cumulative votes as a director
for the Eighth Board of Directors of the Company.
31
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section IX Financial Report
I Auditor’s report
The semi-annual financial report has not been audited by a CPAs firm.
II Financial statements (see the attached)
Section X Documents Available for Reference
I The 2016 Semi-Annual Report carrying the signature of the Board Chairman;
II The 2016 Semi-Annual Financial Report carrying the signatures of the Company’s Legal
Representative, Chief Financial Officer and Financial Manager; and
III Original copies of all documents and announcements disclosed during the reporting period on
Securities Times, Ta Kung Pao and www.cninfo.com.cn.
For and on behalf of the Board
Shi Wei
Chairman
Shenzhen Chiwan Wharf Holdings Limited
Dated 26 August 2016
32
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
Contents Pages
The Company and consolidated balance sheets 2-3
The Company and consolidated income statements 4-5
The Company and consolidated cash flow statements 6-7
The Company and consolidated statements of changes in
shareholders' equity 8-9
Notes to the financial statements 10 - 99
-1-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
AT 30 JUNE 2016
Consolidated Balance Sheet
Unit: RMB
LIABILITIES AND
ASSETS Notes 30 Jun. 2016 31 Dec. 2015 SHAREHOLDERS' EQUITY Notes 30 Jun. 2016 31 Dec. 2015
Current Assets: Current Liabilities:
Cash and bank balances (V)1 405,872,026.99 683,138,123.66 Short-term borrowings (V)20 - 141,610,178.37
Notes receivable (V)2 700,000.00 3,327,000.00 Accounts payable (V)21 104,297,915.81 91,453,838.66
Accounts receivable (V)3 243,122,948.05 189,016,564.86 Receipts in advance (V)22 76,107,732.84 40,504,130.84
Prepayments (V)4 3,332,334.70 2,678,775.41 Employee benefits payable (V)23 59,500,565.06 77,084,662.63
Interest receivable (V)5 - 72,773.05 Taxes payable (V)24 59,461,002.25 48,134,602.74
Dividends receivable (V)6 - - Interest payable (V)25 19,715,068.47 18,519,838.93
Other receivables (V)7 45,731,255.62 14,908,748.44 Dividends payable (V)26 353,068,137.47 88,715,008.17
Inventories (V)8 17,882,080.33 17,300,307.66 Other payables (V)27 50,513,413.29 76,713,923.82
Non-current liabilities due
Other current assets (V)9 12,584,516.23 12,889,208.71 (V)28 5,405,618.17 5,306,254.17
within one year
Total current assets 729,225,161.92 923,331,501.79 Other current liabilities (V)29 - 500,000,000.00
Non-current Assets: Total current liabilities 728,069,453.36 1,088,042,438.33
Available-for-sale financial assets (V)10 22,249,200.00 22,659,200.00 Non-current Liabilities:
Long-term equity investments (V)11 1,439,244,037.52 1,447,024,975.16 Bonds payable (V)30 498,163,287.70 497,764,383.59
Investment property (V)12 26,286,805.06 26,747,795.38 Long-term payables (V)31 1,027,725.60 -
Fixed assets (V)13 3,118,183,948.02 3,213,180,964.08 Special payables (V)32 34,990,596.50 34,990,596.50
Construction in progress (V)14 42,297,498.37 22,222,084.78 Deferred income (V)33 59,661,550.43 61,757,528.45
Intangible assets (V)15 1,029,095,706.17 1,046,896,621.98 Deferred tax liabilities (V)18 1,805,000.00 1,907,500.00
Goodwill (V)16 10,858,898.17 10,858,898.17 Total non-current liabilities 595,648,160.23 596,420,008.54
Long-term prepaid expenses (V)17 55,983,868.34 57,241,809.97 TOTAL LIABILITIES 1,323,717,613.59 1,684,462,446.87
Deferred tax assets (V)18 11,274,320.82 11,274,320.82 SHAREHOLDERS' EQUITY:
Other non-current assets (V)19 142,061,835.70 132,334,704.86 Share capital (V)34 644,763,730.00 644,763,730.00
Total non-current assets 5,897,536,118.17 5,990,441,375.20 Capital reserve (V)35 167,480,381.25 165,564,739.15
Other comprehensive income (V)36 (8,197,146.43) (7,889,646.43)
Special reserve (V)37 5,532,234.45 3,719,755.58
Surplus reserve (V)38 520,074,434.56 520,074,434.56
Unappropriated profit (V)39 3,115,549,901.86 3,113,367,524.19
Total shareholders' equity attributable to
4,445,203,535.69 4,439,600,537.05
equity holders of the parent
Minority interests 857,840,130.81 789,709,893.07
TOTAL SHAREHOLDERS' EQUITY: 5,303,043,666.50 5,229,310,430.12
TOTAL LIABILITIES AND
TOTAL ASSETS 6,626,761,280.09 6,913,772,876.99 6,626,761,280.09 6,913,772,876.99
SHAREHOLDERS' EQUITY
The accompanying notes form part of the financial statements.
The financial statements on pages 2 to 100 were signed by the following:
Legal Representative：Shi Wei
Chief Financial Officer：Zhang Fang
Head of Accounting Department：Li Li
-2-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
AT 30 JUNE 2016
Balance Sheet of the Company
Unit: RMB
LIABILITIES AND
ASSETS Notes 30 Jun. 2016 31 Dec. 2015 SHAREHOLDERS' EQUITY Notes 30 Jun. 2016 31 Dec. 2015
Current Assets: Current Liabilities:
Cash and bank balances 190,393,031.45 331,615,767.60 Accounts payable 14,364,592.18 15,487,513.65
Accounts receivable (XIV)1 15,508,498.87 20,084,782.32 Receipts in advance - 152,681.00
Prepayments 1,879,438.00 489,500.00 Employee benefits payable 40,481,033.69 47,533,873.50
Interest receivable - - Taxes payable 4,461,191.36 1,571,813.93
Dividends receivable 108,370,429.14 217,818,690.44 Interest payable 20,813,087.68 20,381,890.98
Other receivables (XIV)2 650,841,057.71 679,107,748.88 Dividend payable 301,961,669.95 37,608,540.65
Inventories 990,235.94 1,026,023.04 Other payables 381,896,614.98 327,263,528.94
Other current assets 694,528.41 487,860.51 Other current liabilities - 500,000,000.00
Total current assets 968,677,219.52 1,250,630,372.79 Total current liabilities 763,978,189.84 949,999,842.65
Non-current Assets: Non-current Liabilities:
Available-for-sale financial assets 22,249,200.00 22,659,200.00 Bonds payable 498,163,287.70 497,764,383.59
Long-term receivables 11,004,284.75 11,004,284.75 Long-term payables 116,662,000.00 -
Long-term equity investments (XIV)3 2,007,724,536.83 2,000,153,426.29 Deferred tax liabilities 1,805,000.00 1,907,500.00
Investment property 16,068,823.21 16,358,585.53 Total non-current liabilities 616,630,287.70 499,671,883.59
Fixed assets 185,019,059.64 192,230,359.90 TOTAL LIABILITIES 1,380,608,477.54 1,449,671,726.24
Construction in progress 3,894,286.37 1,945,894.40 SHAREHOLDERS' EQUITY
Intangible assets 63,626,977.11 65,112,021.93 Share capital 644,763,730.00 644,763,730.00
Long-term prepaid expenses 4,246,400.47 4,391,427.41 Capital reserve 240,001,254.59 239,043,433.54
Total non-current assets 2,313,833,568.38 2,313,855,200.21 Other Comprehensive Income 5,515,000.00 5,822,500.00
Special reserve 1,060,510.78 1,465,450.61
Surplus reserve 520,074,434.56 520,074,434.56
Unappropriated profit 490,487,380.43 703,644,298.05
TOTAL SHAREHOLDERS'
1,901,902,310.36 2,114,813,846.76
EQUITY
TOTAL LIABILITIES AND
TOTAL ASSETS 3,282,510,787.90 3,564,485,573.00 3,282,510,787.90 3,564,485,573.00
SHAREHOLDERS' EQUITY
The accompanying notes form part of the financial statements.
-3-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2016
Consolidated Income Statement
Unit: RMB
ITEM Notes Jan.-Jun. 2016 Jan.-Jun. 2015
I. Total operating income (V)40 904,809,652.24 880,788,008.78
Less: Operating costs (V)40 492,158,524.59 463,427,511.59
Business taxes and levies (V)41 3,167,942.41 3,917,496.88
Administrative expenses (V)42 81,947,868.71 84,201,871.92
Financial expenses (V)43 14,253,614.35 34,170,800.29
Impairment losses of assets (V)44 288,044.16 153,277.43
Add: Investment income (V)45 69,300,256.41 48,834,997.32
Including: Income from investments in associates
(V)45 63,008,068.56 48,454,997.32
and joint ventures
II. Operating profit 382,293,914.43 343,752,047.99
Add: Non-operating income (V)46 2,639,213.81 1,012,630.77
Including: Gains from disposal of non-current assets (V)46 321,539.16 166,790.00
Less: Non-operating expenses (V)47 501,465.63 95,584.70
Including: Losses from disposal of non-current assets (V)47 497,708.60 54,508.30
III. Gross profit 384,431,662.61 344,669,094.06
Less: Income tax expenses (V)48 49,661,006.76 34,458,531.16
IV. Net profit 334,770,655.85 310,210,562.90
Net profit attributable to shareholders of the parent 266,535,506.97 241,977,372.34
Profit or loss attributable to minority shareholders 68,235,148.88 68,233,190.56
V. Amount of Other Comprehensive Net Income After Tax: (V)49 (307,500.00) 1,785,000.00
Amount of other comprehensive net income after tax attributable
(307,500.00) 1,785,000.00
to equity holders of the parent
(I) Other comprehensive income that will not be reclassified
- -
subsequently to profit or loss
(i) Change as a result of remeasurement of the net defined
- -
benefit plan liability or asset
(ii) Share of other comprehensive income of the investee under
the equity method that will not be reclassified to profit or - -
loss
(II) Other comprehensive income that will be reclassified
(307,500.00) 1,785,000.00
subsequently to profit or loss
(i) Share of other comprehensive income of the investee under
- -
the equity method that will be reclassified to profit or loss
(ii) Gains or losses on changes in fair value of available-for-sale
(307,500.00) 1,785,000.00
financial assets
(iii) Translation differences of financial statements denominated
- -
in foreign currencies
Amount of other comprehensive net income after tax attributable
- -
to minority shareholders
VI. Total comprehensive income attributable to: 334,463,155.85 311,995,562.90
Shareholders of the parent 266,228,006.97 243,762,372.34
Minority shareholders 68,235,148.88 68,233,190.56
VII. Earnings per share:
(I) Basic earnings per share 0.413 0.375
(II) Diluted earnings per share 0.413 0.375
The accompanying notes form part of the financial statements.
-4-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2016
Income Statement of the Company
Unit: RMB
ITEM Notes Jan.-Jun. 2016 Jan.-Jun. 2015
I. Total operating income (XIV)4 105,710,030.13 127,147,838.62
Less: Operating costs (XIV)4 64,949,950.84 69,660,728.99
Business taxes and levies 1,547,777.62 2,555,308.33
Administrative expenses 33,379,091.02 36,261,079.80
Financial expenses 5,094,574.72 17,668,038.66
Impairment loss of assets 1,895.24 -
Add: Investment income (XIV)5 49,037,666.37 29,413,790.50
Including: Income from investments in associates
(XIV)5 42,745,478.52 29,033,790.50
and joint ventures
II. Operating profit 49,774,407.06 30,416,473.34
Add: Non-operating income 1,631,374.22 323,108.34
Including: Gains from disposal of non-current assets 171,539.16 166,790.00
Less: Non-operating expenses 232,526.52 12,076.40
Including: Losses from disposal of non-current assets 232,526.52 -
III. Gross profit 51,173,254.76 30,727,505.28
Less: Income tax expenses (22,956.92) -
IV. Net profit 51,196,211.68 30,727,505.28
V. Amount of Other Comprehensive Net Income After Tax: (307,500.00) 1,785,000.00
(I) Other comprehensive income that will not be
reclassified subsequently to profit or loss - -
(i) Change as a result of remeasurement of the net
defined benefit plan liability or asset - -
(ii) Share of other comprehensive income of the investee
under the equity method that will not be reclassified to - -
profit or loss
(II) Other comprehensive income that will be reclassified
subsequently to profit or loss (307,500.00) 1,785,000.00
(i) Share of other comprehensive income of the investee
under the equity method that will be reclassified to - -
profit or loss
(ii) Gains or losses on changes in fair value of available-
for-sale financial assets (307,500.00) 1,785,000.00
(iii) Translation differences of financial statements
denominated in foreign currencies - -
VI. Total comprehensive income 50,888,711.68 32,512,505.28
The accompanying notes form part of the financial statements.
-5-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2016
Consolidated Cash Flow Statement
Unit: RMB
ITEM Notes Jan.-Jun. 2016 Jan.-Jun. 2015
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 909,202,402.61 845,675,647.07
Other cash receipts relating to operating activities (V)51(1) 5,778,446.67 16,046,584.93
Sub-total of cash inflows 914,980,849.28 861,722,232.00
Cash payments for goods purchased and services received 257,633,025.65 237,838,796.37
Cash payments to and on behalf of employees 184,930,609.51 176,748,169.75
Payments of all types of taxes 57,624,012.99 63,929,640.40
Other cash payments relating to operating activities (V)51(2) 46,135,957.33 17,683,110.77
Sub-total of cash outflows 546,323,605.48 496,199,717.29
Net Cash Flows from Operating Activities (V)52(1) 368,657,243.80 365,522,514.71
II. Cash Flows from Investing Activities:
Cash receipts from investments income 77,197,846.38 30,785,676.52
Net cash receipts from disposal of fixed assets, intangible assets
1,916,084.08 229,408.50
and other long-term assets
Sub-total of cash inflows 79,113,930.46 31,015,085.02
Cash payments to acquire or construct fixed assets, intangible
62,448,676.28 43,083,831.12
assets and other long-term assets
Sub-total of cash outflows 62,448,676.28 43,083,831.12
Net Cash Flows from Investing Activities 16,665,254.18 (12,068,746.10)
III. Cash Flows from Financing Activities:
Cash receipts from borrowings 100,000,000.00 133,294,087.68
Cash receipts from issue of bonds - 499,000,000.00
Sub-total of cash inflows 100,000,000.00 632,294,087.68
Cash repayments of borrowings 744,466,721.71 900,000,000.00
Cash payments for distribution of dividends or profit or interest 20,324,960.51 246,532,314.98
Including: Payments for distribution of dividends or profit to
- 199,874,053.12
minorities
Other cash payments relating to financing activities (V)51(3) 25,986.89 128,296.31
Sub-total of cash outflows 764,817,669.11 1,146,660,611.29
Net Cash Flows from Financing Activities (664,817,669.11) (514,366,523.61)
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash
2,229,074.46 449,944.75
Equivalents
V. Net Increase (Decrease)in Cash and Cash Equivalents (277,266,096.67) (160,462,810.25)
Add: Opening balance of Cash and Cash Equivalents (V)52(2) 683,138,123.66 468,635,486.47
VI. Closing Balance of Cash and Cash Equivalents (V)52(2) 405,872,026.99 308,172,676.22
The accompanying notes form part of the financial statements.
-6-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2016
Cash Flow Statement of the Company
Unit: RMB
ITEM Notes Jan.-Jun. 2016 Jan.-Jun. 2015
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 115,849,225.53 114,925,818.68
Other cash receipts relating to operating activities 462,768,621.77 571,999,822.81
Sub-total of cash inflows 578,617,847.30 686,925,641.49
Cash payments for goods purchased and services received 31,533,042.73 30,481,597.43
Cash payments to and on behalf of employees 63,282,140.23 63,956,603.14
Payments of all types of taxes 4,088,453.58 7,002,326.88
Other cash payments relating to operating activities 368,439,595.82 436,136,465.42
Sub-total of cash outflows 467,343,232.36 537,576,992.87
Net Cash Flows from Operating Activities (XIV)8 111,274,614.94 149,348,648.62
II. Cash Flows from Investing Activities:
Cash receipts from investments income 151,872,638.18 140,785,676.52
Net cash receipts from disposal of fixed assets, intangible assets
1,677,137.08 96,842.47
and other long-term assets
Cash receipts from disposal of subsidiaries and other business units - -
Sub-total of cash inflows 153,549,775.26 140,882,518.99
Cash payments to acquire or construct fixed assets,
2,409,879.75 373,900.00
intangible assets and other long-term assets
Sub-total of cash outflows 2,409,879.75 373,900.00
Net Cash Flows from Investing Activities 151,139,895.51 140,508,618.99
III. Cash Flows from Financing Activities:
Cash receipts from borrowings 219,658,000.00 -
Cash receipts from issue of bonds - 499,000,000.00
Sub-total of cash inflows 219,658,000.00 499,000,000.00
Cash repayments of borrowings 600,000,000.00 900,000,000.00
Cash payments for distribution of dividends or profit or interest 19,798,230.88 46,400,000.00
Other cash payments relating to financing activities 25,986.89 128,296.31
Sub-total of cash outflows 619,824,217.77 946,528,296.31
Net Cash Flows from Financing Activities (400,166,217.77) (447,528,296.31)
IV. Effect of Foreign Exchange Rate Changes on Cash
(3,471,028.83) 104,691.94
and Cash Equivalents
V. Net Increase(Decrease) in Cash and Cash Equivalents (141,222,736.15) (157,566,336.76)
Add: Opening balance of Cash and Cash Equivalents 331,615,767.60 281,427,034.32
VI. Closing Balance of Cash and Cash Equivalents 190,393,031.45 123,860,697.56
The accompanying notes form part of the financial statements.
-7-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2016
Consolidated Statement of Changes in Shareholders' Equity
Unit: RMB
Amount of Jan.-Jun.2016 Amount of last year
Attributable to shareholders of the parent Attributable to shareholders of the parent
Other Total Other Total
comprehensive Special Unappropriated Minority shareholders' comprehensive Special Unappropriated Minority shareholders'
ITEM Share capital Capital reserve income reserve Surplus reserve profit Others interests equity Share capital Capital reserve income reserve Surplus reserve profit Others interests equity
I. Closing balance of the preceding year 644,763,730.00 165,564,739.15 (7,889,646.43) 3,719,755.58 520,074,434.56 3,113,367,524.19 789,709,893.07 5,229,310,430.12 644,763,730.00 162,698,555.65 (8,977,146.43) 2,219,777.52 520,074,434.56 2,794,519,480.29 760,300,768.84 4,875,599,600.43
Add: Changes in accounting policies - - - - - - - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - - - - - - - -
Others - - - - - - - - - - - - - - - - - -
II. Opening balance of the year 644,763,730.00 165,564,739.15 (7,889,646.43) 3,719,755.58 520,074,434.56 3,113,367,524.19 - 789,709,893.07 5,229,310,430.12 644,763,730.00 162,698,555.65 (8,977,146.43) 2,219,777.52 520,074,434.56 2,794,519,480.29 - 760,300,768.84 4,875,599,600.43
III. Changes for the year - 1,915,642.10 (307,500.00) 1,812,478.87 - 2,182,377.67 - 68,130,237.74 73,733,236.38 - 2,866,183.50 1,087,500.00 1,499,978.06 - 318,848,043.90 - 29,409,124.23 353,710,829.69
(I) Total comprehensive income - - (307,500.00) - - 266,535,506.97 - 68,235,148.88 334,463,155.85 - 1,087,500.00 - - 527,751,492.42 - 124,966,166.19 653,805,158.61
(II) Owners’ contributions and reduction in
- 1,915,642.10 - - - - - - 1,915,642.10 2,866,183.50 - - - - - - 2,866,183.50
capital
1. Capital contribution from shareholders - - - - - - - - - - - - - - - - - -
2. Share-based payment recognised in
- - - - - - - - - - - - - - - - - -
shareholders' equity
3. Others - 1,915,642.10 - - - - - - 1,915,642.10 - 2,866,183.50 - - - - - - 2,866,183.50
(III) Profit distribution - - - - - (264,353,129.30) - - (264,353,129.30) - - - - (208,903,448.52) (95,620,966.90) (304,524,415.42)
1. Transfer to surplus reserve - - - - - - - - - - - - - - - - - -
2. Transfer to general reserve - - - - - - - - - - - - - - - - - -
3. Distributions to shareholders - - - - - (264,353,129.30) - - (264,353,129.30) (208,903,448.52) (95,620,966.90) (304,524,415.42)
4. Others - - - - - - - - - - - - - - - - - -
(IV) Transfers within shareholders' equity - - - - - - - - - - - - - - - - - -
1. Capitalisation of capital reserve - - - - - - - - - - - - - - - - - -
2. Capitalisation of surplus reserve - - - - - - - - - - - - - - - - - -
3. Loss made up by surplus reserve - - - - - - - - - - - - - - - - - -
4. Others - - - - - - - - - - - - - - - - - -
(V) Special reserve - - - 1,812,478.87 - - - (104,911.14) 1,707,567.73 - - - 1,499,978.06 - - - 63,924.94 1,563,903.00
1. Withdrawn in the period - - - 7,938,679.84 - - - 1,921,430.61 9,860,110.44 - - - 15,469,088.95 - - - 4,006,535.26 19,475,624.21
2. Utilized in the period - - - (6,126,200.97) - - - (2,026,341.74) (8,152,542.71) - - - (13,969,110.89) - - - (3,942,610.32) (17,911,721.21)
(VI) Others - - - - - - - - - - - - - - - - -
IV. Closing balance of the year 644,763,730.00 167,480,381.25 (8,197,146.43) 5,532,234.45 520,074,434.56 3,115,549,901.86 857,840,130.81 5,303,043,666.50 644,763,730.00 165,564,739.15 (7,889,646.43) 3,719,755.58 520,074,434.56 3,113,367,524.19 - 789,709,893.07 5,229,310,430.12
The accompanying notes form part of the financial statements.
-8-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2016
Statement of Changes in Shareholders' Equity of the Company
Unit: RMB
Amount of Jan.-Jun.2016 Amount of last year
Other Other
comprehensive Unappropriated Total shareholders' comprehensive Unappropriated Total shareholders'
ITEM Share capital Capital reserve income Special reserve Surplus reserve profit equity Share capital Capital reserve income Special reserve Surplus reserve profit equity
I. Closing balance of the preceding year 644,763,730.00 239,043,433.54 5,822,500 1,465,450.61 520,074,434.56 703,644,298.05 2,114,813,846.76 644,763,730.00 204,296,719.24 4,735,000.00 - 520,074,434.56 648,306,530.85 2,022,176,414.65
Add: Changes in accounting policies - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - - - -
Others - - - - - - - - - - - - - -
II. Opening balance of the year 644,763,730.00 239,043,433.54 5,822,500.00 1,465,450.61 520,074,434.56 703,644,298.05 2,114,813,846.76 644,763,730.00 204,296,719.24 4,735,000.00 - 520,074,434.56 648,306,530.85 2,022,176,414.65
III. Changes for the year - 957,821.05 (307,500.00) (404,939.83) (213,156,917.62) (212,911,536.40) - 34,746,714.30 1,087,500.00 1,465,450.61 - 55,337,767.20 92,637,432.11
(I) Total comprehensive income - - (307,500.00) 51,196,211.68 50,888,711.68 - - 1,087,500.00 - - 264,241,215.72 265,328,715.72
(II) Owners’ contributions and reduction
- - - - - - - - - - - - - -
in capital
1. Capital contribution from shareholders - - - - - - - - - - - - - -
2. Share-based payment recognised in
- - - - - - - - - - - - - -
shareholders' equity
3. Others - - - - - - - - - - - - - -
(III) Profit distribution - - - - - (264,353,129.30) (264,353,129.30) - - - - - (208,903,448.52) (208,903,448.52)
1. Transfer to surplus reserve - - - - - - - - - - - - -
2. Transfer to general reserve - - - - - - - - - - - - - -
3. Distributions to shareholders - - - - - (264,353,129.30) (264,353,129.30) - - - - - (208,903,448.52) (208,903,448.52)
4. Others - - - - - - - - - - - - - -
(IV) Transfers within shareholders' equity - - - - - - - - - - - - - -
1. Capitalisation of capital reserve - - - - - - - - - - - - - -
2. Capitalisation of surplus reserve - - - - - - - - - - - - - -
3. Loss made up by surplus reserve - - - - - - - - - - - - - -
4. Others - - - - - - - - - - - - - -
(V) Special reserve - - - (404,939.83) - - (404,939.83) - - - 1,296,180.48 - - 1,296,180.48
1. Transfer to special reserve in the period - - - 1,310,805.30 - - 1,310,805.30 - - - 2,927,499.53 - - 2,927,499.53
2. Utilized in the period - - - (1,715,745.13) - - (1,715,745.13) - - - (1,631,319.05) - - (1,631,319.05)
(VI) Others - 957,821.05 - - - - 957,821.05 - 34,746,714.30 - 169270.13 - - 34,915,984.43
IV. Closing balance of the year 644,763,730.00 240,001,254.59 5,515,000.00 1,060,510.78 520,074,434.56 490,487,380.43 1,901,902,310.36 644,763,730.00 239,043,433.54 5,822,500.00 1,465,450.61 520,074,434.56 703,644,298.05 2,114,813,846.76
The accompanying notes form part of the financial statements.
-9-
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(I) GENERAL INFORMATION OF THE COMPANY
Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred to as the "Company") was a
stock limited company incorporated on 16 January 1993.
The headquarters of the Company is located in Shenzhen Guangdong Province. The Company
and its subsidiaries (collectively the "Group") are principally engaged in the provision of cargo
handling, warehousing, land and sea transportation services, cargo packing, agency business and
other services.
The scope of consolidated financial statements in the current period involves 10 subsidiaries. See
Note (VII) "Equity in other entities" for details.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises issued by the Ministry
of Finance (MoF) including the new and modified ones in 2014. In addition, the Group has
disclosed relevant financial information in accordance with Information Disclosure and
Presentation Rules for Companies Offering Securities to the Public No. 15-General Provisions on
Financial Reporting (Revised in 2014).
Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for certain financial instruments
which are measured at fair value, the Group adopts the historical cost as the principle of
measurement of the financial statements. Upon being restructured into a stock company, the fixed
assets and intangible assets initially contributed by the state-owned shareholders are recognized
based on the valuation amounts confirmed by the state-owned assets administration department.
Where assets are impaired, provisions for asset impairment are made in accordance with the
relevant requirements.
Where the historical cost is adopted as the measurement basis, assets are recorded at the amount
of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the
time of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or
the contractual amounts for assuming the present obligation, or, at the amounts of cash or cash
equivalents expected to be paid to settle the liabilities in the normal course of business.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date, regardless of whether
that price is directly observable or estimated using valuation technique. Fair value measurement
and/or disclosure in the financial statements are determined according to the above basis.
- 10 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS - continueed
Fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the
inputs to the fair value measurements are observable and the significance of the inputs to the fair
value measurement in its entirety, which are described as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that
the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for
the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
Going Concern
The Group evaluated its going concern ability within 12 months since 30 Jun. 2016. No events or
circumstances are noted, which could cause significant doubt upon the entity's ability to
continue as going concern. Hence, the financial statements have been prepared on a going concern
basis.
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES
All the following significant accounting policies and accounting estimates are based on
Accounting Standards for Business Enterprises.
1.Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with ASBE, and present truly and
completely, the Company's and consolidated financial position as of 30 June 2016, and the Company's and
consolidated results of operations and cash flows for six months ended 30 June 2016.
2. Accounting period
The Group has adopted the calendar year as its accounting year, e.g. from 1 January to 31
December.
.
3. Operating cycle
Buginese cycle is referred to the period from which an enterprise buys assets to manufacture to
the date it achieves cash or cash equivalents.
4. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company
and its subsidiaries operate. Therefore, the Company and its subsidiaries choose RMB as their
functional currency. The Group adopts RMB to prepare its financial statements.
- 11 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
5. The accounting treatment of business combinations involving or not involving enterprises
under common control
Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded
by the combining entities at the date of the combination. The difference between the carrying
amount of the net assets obtained and the carrying amount of the consideration paid for the
combination is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred.
5.2 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same
party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets
given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for
control of the acquire. Where a business combination not involving enterprises under common control is
achieved in stages that involve multiple transactions, the cost of combination is the sum of the consideration
paid at the acquisition date and the fair value at the acquisition date of the acquirer's previously held interest in
the acquiree. The intermediary expenses (fees in respect of auditing, legal services, valuation and
consultancy services, etc.) and other administrative expenses attributable to the business
combination are recognized in profit or loss in the periods when they are incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired by the acquirer in a
business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date.
- 12 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
5. The accounting treatment of business combinations involving or not involving enterprises
under common control - continued
5.2 Business combinations not involving enterprises under common control and goodwill -
continued
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's
identifiable net assets, the difference is treated as an asset and recognized as goodwill, which is
measured at cost on initial recognition. Where the cost of combination is less than the acquirer's
interest in the fair value of the acquiree's identifiable net assets, the acquirer reassesses the
measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent
liabilities and measurement of the cost of combination. If after that reassessment, the cost of
combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable
net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the
current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment
losses, and is presented separately in the consolidated financial statements.
6. Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of
control. Control exists when the investor has power over the investee; is exposed, or has rights, to
variable returns from its involvement with the investee; and has the ability to use its power over
the investee to affect its returns. The Group reassesses whether or not it controls an investee if
facts and circumstances indicate that there are changes of the above elements of the definition of
control.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiaries and
ceases when the Group loses control of the subsidiary.
For a subsidiary already disposed of by the Group, the operating results and cash flows before the
date of disposal (the date when control is lost) are included in the consolidated income statement
and consolidated statement of cash flows, as appropriate.
For subsidiaries acquired through a business combination involving enterprises not under
common control, the operating results and cash flows from the acquisition date (the date when
control is obtained) are included in the consolidated income statement and consolidated statement
of cash flows, as appropriate.
- 13 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
6. Preparation of consolidated financial statements - continued
No matter when the business combination occurs in the reporting period, subsidiaries acquired
through a business combination involving enterprises under common control are included in the
Group's scope of consolidation as if they had been included in the scope of consolidation from the
date when they first came under the common control of the ultimate controlling party. Their
operating results and cash flows from the date when they first came under the common control of
the ultimate controlling party are included in the consolidated income statement and consolidated
statement of cash flows, as appropriate.
The significant accounting policies and accounting periods adopted by the subsidiaries are
determined based on the uniform accounting policies and accounting periods set out by the
Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the parent is treated as minority
interests and presented as "minority interests" in the consolidated balance sheet under
shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable
to minority interests is presented as "minority interests" in the consolidated income statement
under the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders' portion of the opening balance of shareholders' equity of the
subsidiary, the excess amount is still allocated against minority interests.
Acquisition of minority interests or disposals of interests in a subsidiary that do not result in the
loss of control over the subsidiary are accounted for as equity transactions. The carrying amounts
of the parent's interests and minority interests are adjusted to reflect the changes in their relative
interests in the subsidiary. The difference between the amount by which the minority interests are
adjusted and the fair value of the consideration paid or received is adjusted to shareholders' equity
(capital reserve). If the capital reserve is not sufficient to absorb the difference, the excess are
adjusted against retained earnings.
When the Group loses control over a subsidiary due to disposal of equity investment or other
reason, any retained interest is re-measured at its fair value at the date when control is lost. The
difference between (i) the aggregate of the consideration received on disposal and the fair value of
any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated
from the acquisition date according to the original proportion of ownership interests is recognized
as investment income in the period in which control is lost, and the goodwill is offset accordingly.
Other comprehensive income associated with investment in the former subsidiary is reclassified to
investment income in the period in which control is lost.
- 14 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
7.Types of joint arrangements and the accounting treatment of joint operation
There are two types of joint arrangements - joint operations and joint ventures. The classification
of joint arrangements under is determined based on the rights and obligations of parties to the
joint arrangements by considering the structure, the legal form of the arrangements, the
contractual terms agreed by the parties to the arrangement. A joint operation is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the
assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to
the net assets of the arrangement.
Investments in joint ventures are accounted for using the equity method by the Group, which is
detailed in Note(III) 13.3.2 A long-term equity investment accounted for using the equity method.
The Group as a joint operator recognizes the following items in relation to its interest in a joint
operation: (1) its solely-held assets, including its share of any assets held jointly; (2) its solely-
assumed liabilities, including its share of any liabilities incurred jointly; (3) its revenue from the
sale of its share of the output arising from the joint operation; (4) its share of the revenue from the
sale of the output by the joint operation; and (5) its solely-incurred expenses, including its share of
any expenses incurred jointly. The Group accounts for the recognised assets, liabilities, revenues
and expenses relating to its interest in a joint operation in accordance with the requirements
applicable to the particular assets, liabilities, revenues and expenses.
8. Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents are the Group's short-term, highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
9. Foreign currency transactions
9.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange
rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot
exchange rates at the balance sheet date. Exchange differences arising from the differences
between the spot exchange rates prevailing at the balance sheet date and those on initial
recognition or at the previous balance sheet date are recognized in profit or loss for the period,
except that (1) exchange differences related to a specific-purpose borrowing denominated in
foreign currency that qualify for capitalization are capitalized as part of the cost of the qualifying
asset during the capitalization period; (2) exchange differences related to hedging instruments for
the purpose of hedging against foreign currency risks are accounted for using hedge accounting;
(3) exchange differences arising from change in the carrying amounts other than the amortized
cost of available-for-sale monetary items are included in other comprehensive income.
- 15 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
9. Foreign currency transactions- continued
9.1 Transactions denominated in foreign currencies - continued
Foreign currency non-monetary items measured at historical cost are translated to the amounts in
functional currency at the spot exchange rates on the dates of the transactions; the amounts in
functional currency remain unchanged. Foreign currency non-monetary items measured at fair
value are re-translated at the spot exchange rate on the date the fair value is determined.
Difference between the re-translated functional currency amount and the original functional
currency amount is treated as changes in fair value including changes of exchange rate and is
recognized in profit and loss or included in other comprehensive income.
10. Financial instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to the
contractual provisions of the instrument. Financial assets and financial liabilities are initially
measured at fair value. For financial assets and financial liabilities at fair value through profit or
loss, transaction costs are immediately recognized in profit or loss. For other financial assets and
financial liabilities, transaction costs are included in their initial recognized amounts.
10.1 Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability (or a group of financial assets or financial liabilities) and of allocating the
interest income or interest expense over the relevant period, using the effective interest rate. The
effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability or, where appropriate, a shorter period to
the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group estimates future cash flows considering all
contractual terms of the financial asset or financial liability (without considering future credit
losses), and also considers all fees paid or received between the parties to the contract giving rise
to the financial asset and financial liability that are an integral part of the effective interest rate,
transaction costs, and premiums or discounts etc.
10.2 Classification, recognition and measurement of financial assets
On initial recognition, the Group's financial assets are classified into one of the four categories,
including financial assets at fair value through profit or loss ("FVTPL"), held-to-maturity
investments, loans and receivables, and available-for-sale financial assets. All regular way
purchases or sales of financial assets are recognized and derecognized on a trade date basis.
- 16 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
10. Financial instruments - continued
10.2 Classification, recognition and measurement of financial assets - continued
10.2.1 Financial Assets at Fair Value through Profit or Loss ("FVTPL")
Financial assets at fair value through profit or loss ("FVTPL") include financial assets held for
trading and those designated as at fair value through profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (1)
it has been acquired principally for the purpose of selling in the near term; or (2) on initial
recognition it is part of a portfolio of identified financial instruments that the Group manages
together and there is objective evidence that the Group has a recent actual pattern of short-term
profit-taking; or (3) it is a derivative that is not designated and effective as a hedging instrument,
or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery
of an unquoted equity instrument (without a quoted price in an active market) whose fair value
cannot be reliably measured.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the
following conditions is satisfied: (1) such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise result from measuring assets or
recognizing the gains or losses on them on different bases; or (2) the financial asset forms part of
a group of financial assets or a group of financial assets and financial liabilities, which is managed
and its performance is evaluated on a fair value basis, in accordance with the Group's documented
risk management or investment strategy, and information about the grouping is reported to key
management personnel on that basis; or (3) eligible hybrid instruments that contain embedded
derivatives.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising
from changes in the fair value and any dividend or interest income earned on the financial assets
are recognized in profit or loss.
10.2.2 Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturity dates that the Group's management has the positive intention and
ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost using the effective
interest method. Gain or loss arising from derecognition, impairment or amortization is
recognized in profit or loss.
- 17 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
10. Financial instruments - continued
10.2 Classification, recognition and measurement of financial assets - continued
10.2.3 Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Financial assets classified as loans and receivables by the
Group include notes receivable, accounts receivable, interest receivable, dividends receivable, and
other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest
method. Gain or loss arising from derecognition, impairment or amortization is recognized in
profit or loss.
10.2.4 Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on
initial recognition as available for sale, and financial assets that are not classified as financial
assets at fair value through profit or loss, loans and receivables or held-to-maturity investments.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses
arising from changes in the fair value are recognized as other comprehensive income and included
in the capital reserve, except that impairment losses and exchange differences related to amortized
cost of financial assets are recognized in profit or loss, until the financial assets are derecognized,
at which time the gains or losses are released and recognized in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the
available-for-sale financial assets are held, are recognized in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and
whose fair value cannot be reliably measured, and derivative financial assets that are linked to and
must be settled by delivery of such unquoted equity instruments are measured at cost.
10.3 Impairment of financial assets
The Group assesses at each balance sheet date the carrying amounts of financial assets other than
those at fair value through profit or loss. If there is objective evidence that a financial asset is
impaired, the Group determines the amount of any impairment loss. Objective evidence that a
financial asset is impaired is evidence that, arising from one or more events that occurred after the
initial recognition of the asset, the estimated future cash flows of the financial asset, which can be
reliably measured, have been affected.
- 18 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
10. Financial instruments - continued
10.3 Impairment of financial assets - continued
Objective evidence that a financial asset is impaired includes the following observable events:
(1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal
payments;
(3) The Group, for economic or legal reasons relating to the borrower's financial difficulty,
granting a concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial
reorganizations;
(5) The disappearance of an active market for that financial asset because of financial difficulties
of the issuer;
(6) Upon an overall assessment of a group of financial assets, observable data indicates that there
is a measurable decrease in the estimated future cash flows from the group of financial assets
since the initial recognition of those assets, although the decrease cannot yet be identified
with the individual financial assets in the group. Such observable data includes:
- Adverse changes in the payment status of borrower in the group of assets;
- Economic conditions in the country or region of the borrower which may lead to a failure to
pay the group of assets;
(7) Significant adverse changes in the technological, market, economic or legal environment in
which the issuer of equity instruments operates, indicating that the cost of the investment in
the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument
below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortized cost
If financial assets carried at cost or amortized cost are impaired, the carrying amounts of the
financial assets are reduced to the present value of estimated future cash flows (excluding future
credit losses that have not been incurred) discounted at the financial asset's original effective
interest rate. The amount of reduction is recognized as an impairment loss in profit or loss. If,
subsequent to the recognition of an impairment loss on financial assets carried at amortized cost,
there is objective evidence of a recovery in value of the financial assets which can be related
objectively to an event occurring after the impairment is recognized, the previously recognized
impairment loss is reversed. However, the reversal does not result in a carrying amount of the
financial asset that exceeds what the amortized cost would have been had the impairment not been
recognized at the date the impairment is reversed.
- 19 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
10. Financial instruments - continued
10.3 Impairment of financial assets - continued
- Impairment of financial assets measured at amortized cost - continued
For a financial asset that is individually significant, the Group assesses the asset individually for
impairment. For a financial asset that is not individually significant, the Group assesses the asset
individually for impairment or includes the asset in a group of financial assets with similar credit
risk characteristics and collectively assesses them for impairment. If the Group determines that no
objective evidence of impairment exists for an individually assessed financial asset (whether
significant or not), it includes the asset in a group of financial assets with similar credit risk
characteristics and collectively assesses them for impairment. Assets for which an impairment
loss is individually recognized are not included in a collective assessment of impairment.
- Impairment of available-for-sale financial assets
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in
fair value previously recognized directly in other comprehensive income is reclassified from the
capital reserve to profit or loss. The amount of the cumulative loss that is reclassified from capital
reserve to profit or loss is the difference between the acquisition cost (net of any principal
repayment and amortization) and the current fair value, less any impairment loss on that financial
asset previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there
is objective evidence of a recovery in value of the financial assets which can be related
objectively to an event occurring after the impairment is recognized, the previously recognized
impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale
equity instruments is recognized as other comprehensive income and included in the capital
reserve, while the amount of reversal of impairment loss on available-for-sale debt instruments is
recognized in profit or loss.
- Impairment of financial assets measured at cost
If an impairment loss has been incurred on an investment in unquoted equity instrument (without
a quoted price in an active market) whose fair value cannot be reliably measured, or on a
derivative financial asset that is linked to and must be settled by delivery of such an unquoted
equity instrument, the carrying amount of the financial asset is reduced to the present value of
estimated future cash flows discounted at the current market rate of return for a similar financial
asset. The amount of reduction is recognized as an impairment loss in profit or loss. The
impairment loss on such financial asset is not reversed once it is recognized.
- 20 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
10. Financial instruments - continued
10.4 Transfer of financial assets
The Group derecognizes a financial asset if one of the following conditions is satisfied: (1) the
contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has
been transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (3) although the financial asset has been transferred, the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset, and it retains control of the financial asset, it recognizes the financial asset to the
extent of its continuing involvement in the transferred financial asset and recognizes an associated
liability. The extent of the Group's continuing involvement in the transferred asset is the extent to
which it is exposed to changes in the value of the transferred asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the
difference between (1) the carrying amount of the financial asset transferred; and (2) the sum of
the consideration received from the transfer and any cumulative gain or loss that has been
recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the
transferred financial asset is allocated between the part that continues to be recognized and the
part that is derecognized, based on the respective fair values of those parts. The difference
between (1) the carrying amount allocated to the part derecognized; and (2) the sum of the
consideration received for the part derecognized and any cumulative gain or loss allocated to the
part derecognized which has been previously recognized in other comprehensive income, is
recognized in profit or loss
10.5 Classification, recognition and measurement of financial liabilities
Debt and equity instruments issued by the Group are classified into financial liabilities or equity
on the basis of the substance of the contractual arrangements and definitions of financial liability
and equity instrument.
On initial recognition, financial liabilities are classified into financial liabilities at fair value
through profit or loss and other financial liabilities.
- 21 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
10. Financial instruments - continued
10.5.1 Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL consist of financial liabilities held for trading and those designated
as at FVTPL on initial recognition.
A financial liability is classified as held for trading if one of the following conditions is satisfied:
(1) It has been acquired principally for the purpose of repurchasing in the near term; or (2) On
initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or (3) It is a derivative, except for a derivative that is a designated and
effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and
must be settled by delivery of an unquoted equity instrument (without a quoted price in an active
market) whose fair value cannot be reliably measured.
A financial liability may be designated as at FVTPL upon initial recognition only when one of the
following conditions is satisfied: (1) such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise result from measuring liabilities
or recognizing the gains or losses on them on different bases; or (2) the financial liability forms
part of a group of financial liabilities or a group of financial assets and financial liabilities, which
is managed and its performance is evaluated on a fair value basis, in accordance with the Group's
documented risk management or investment strategy, and information about the grouping is
reported to key management personnel on that basis; or (3) eligible hybrid instruments that
contain embedded derivatives.
Financial liabilities at FVTPL are subsequently measured at fair value, and any gains or losses
arising from changes in the fair value or any dividend or interest expense related with the
financial liabilities are recognized in profit or loss.
10.5.2 Other financial liabilities
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity
instrument (without a quoted price in an active market) whose fair value cannot be reliably
measured, it is subsequently measured at cost. Other financial liabilities are subsequently
measured at amortized cost using the effective interest method, with gains or losses arising from
derecognition or amortization recognized in profit or loss.
- 22 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
10. Financial instruments - continued
10.5 Classification and recognition of financial liabilities - continued
10.5.3 Financial guarantee contracts
A financial guarantee contract is a contract by which the guarantor and the lender agree that the
guarantor would settle the debts or bear obligations in accordance with terms of the contract in
case the borrower fails to settle the debts. Financial guarantee contracts that are not designated as
financial liabilities at fair value through profit or loss, are initially measured at their fair values
less the directly attributable transaction costs. Subsequent to initial recognition, they are measured
at the higher of: (i) the amount determined in accordance with Accounting Standard for Business
Enterprises No. 13 - Contingencies; and (ii) the amount initially recognized less cumulative
amortization recognized in accordance with the principles set out in Accounting Standard for
Business Enterprises No. 14 - Revenue.
10.6 Derecognition of Financial Liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation
(or part of it) is discharged. An agreement between the Group (an existing borrower) and an
existing lender to replace the original financial liability with a new financial liability with
substantially different terms is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability.
When the Group derecognizes a financial liability or a part of it, it recognizes the difference
between the carrying amount of the financial liability (or part of the financial liability)
derecognized and the consideration paid (including any non-cash assets transferred or new
financial liabilities assumed) in profit or loss.
10.7 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized amounts,
and intends either to settle on a net basis, or to realize the financial asset and settle the financial
liability simultaneously, a financial asset and a financial liability shall be offset with the net
amount presented in the balance sheet. Except for the circumstances above, financial assets and
financial liabilities shall be presented separately in the balance sheet and shall not be offset.
10.8 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. The issuance including refinancing, repurchase, sale or
cancellation of equity instrument of the Group is recognized as movement of shareholders' equity.
The Group does not recognize any changes in the fair value of equity instruments. Transaction
costs associated with equity transactions are deducted from shareholders' equity.
The distributions made by the Group to holders of the equity instruments are recognized as profit
distribution. Any issuance of stock dividends do not affect the shareholders' equity.
- 23 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
11. Receivables
11.1 Receivables that are individually significant and for which bad debt provision is individually
assessed
Basis or monetary criteria for Top five balances of receivables are deemed as individually significant
determining individually significant receivables by the Group.
receivables
For receivables that are individually significant, the Group assesses the
Provision methods for receivables that receivables individually for impairment; for a financial asset that is not
are individually significant and for impaired individually, the Group includes the asset in a group of
financial assets with similar credit risk characteristics and collectively
which bad debt provision is assesses them for impairment. Receivables for which an impairment
individually assessed loss is individually recognized are not included in a collective
assessment of impairment.
11.2 Receivables for which bad debt provision is collectively assessed on a credit risk portfolio
basis
Basis for determining a portfolio
Portfolio 1 The portfolio primarily includes amounts due from related parties of
the Group, deposits and petty cash etc.
Portfolio 2 This portfolio excludes amounts due from related parties of the Group,
deposits and petty cash etc.
Bad debt provision methods for a portfolio
Portfolio 1 Specific Identification Method
Portfolio 2 Aging Analysis Method
Portfolios that use aging analysis for bad debt provision:
Provision proportion for Provision proportion for
Aging accounts receivable (%) other receivables (%)
Within 90 days (inclusive) 0 0
More than 91 days but not exceeding 183 days 0-3 0-3
More than 184 days but not exceeding year 5 5
More than 1 year but not exceeding 2 years 20 20
More than 2 years but not exceeding 3 years 50 50
More than 3 years 100 100
11.3 Accounts receivable that are not individually significant but for which individual bad debt
provision is individually assessed:
Reasons for making individual bad debt provision As objective evidence indicates the Group is unable to
collect the receivables under original terms, the
company makes individual bad debt provision.
Bad debt provision methods Under bad debt provision method, the provision is
recognized by the differences between the expected
present value of future cash flows and carrying value.
- 24 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
12. Inventories
12.1 Categories of inventories
Inventories include spare parts, fuel, and low value consumables. Inventories are initially
measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and
other expenditures incurred in bringing the inventories to their present location and condition.
12.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method.
12.3 Basis for determining net realizable value of inventories and provision methods for decline
in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If
the cost of inventories is higher than the net realizable value, a provision for decline in value of
inventories is made. Net realizable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion, the estimated costs necessary to make the sale and
relevant taxes. Net realizable value is determined on the basis of clear evidence obtained, after
taking into consideration the purposes of inventories being held and effect of post balance sheet
events.
Provision for decline in value of other inventories is made based on the excess of cost of
inventory over its net realizable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that
previously caused inventories to be written down below cost no longer exist so that the net
realizable value of inventories is higher than their cost, the original provision for decline in value
is reversed and the reversal is included in profit or loss for the period.
12.4 Inventory count system
The perpetual inventory system is maintained for stock system.
12.5 Amortization methods for low cost and short-lived consumable items and packaging
materials
Packaging materials and low cost and short-lived consumable items are amortized using the
immediate write-off method.
- 25 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
13. Long-term equity investments
13.1 Basis for determining joint control and significant influence over investee
Control is archived when the Group has the power over the investee and has rights to variable
returns from its involvement with the investee; and has the ability to use its power to affect its
returns. Joint control is the contractually agreed sharing of control over an economic activity, and
exists only when the strategic financial and operating policy decisions relating to the activity
require the unanimous consent of the parties sharing control. Significant influence is the power to
participate in the financial and operating policy decisions of the investee but is not control or joint
control over those policies. When determining whether an investing enterprise is able to exercise
control or significant influence over an investee, the effect of potential voting rights of the
investee (for example, warrants and convertible debts) held by the investing enterprises or other
parties that are currently exercisable or convertible shall be considered.
13.2 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises
under common control, the investment cost of the long-term equity investment is the attributable
share of the carrying amount of the shareholders' equity of the acquiree at the date of combination.
The difference between the initial investment cost and the carrying amount of cash paid, non-cash
assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of
capital reserve is not sufficient, any excess shall be adjusted to retained earnings. If the
consideration of the combination is satisfied by the issue of equity securities, the initial
investment cost of the long-term equity investment shall be the share of party being absorbed of
the owners' equity in the consolidated financial statements of the ultimate controlling party at the
date of combination. The aggregate face value of the shares issued shall be accounted for as share
capital. The difference between the initial investment cost and the aggregate face value of the
shares issued shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient,
any excess shall be adjusted to retained earnings.
For a long-term equity investment acquired through business combination not involving
enterprises under common control, the investment cost of the long-term equity investment
acquired is the cost of acquisition.
The absorbing party's or purchaser's intermediary expenses (fees in respect of auditing, legal
services, valuation and consultancy services, etc.) and other administrative expenses attributable
to the business combination are recognized in profit or loss in the periods when they are incurred.
The long-term equity investment acquired otherwise than through a business combination is
initially measured at its cost. When the entity is able to exercise significant influence or joint
control (but not control) over an investee due to additional investment, the cost of long-term
equity investments is the sum of the fair value of previously-held equity investments determined
in accordance with Accounting Standard for Business Enterprises No.22–Financial Instruments:
Recognition and Measurement of (CAS 22) and the additional investment cost.
- 26 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
13. Long-term equity investments - continued
13.3 Subsequent measurement and recognition of profit or loss
13.3.1 A long-term equity investment accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the
Company's separate financial statements. A subsidiary is an investee that is controlled by the
Group.
Under the cost method, a long-term equity investment is measured at initial investment cost.
Additional or withdrawing investment would affect the cost of long-term equity investment.
Investment income is recognized in the period in accordance with the attributable share of cash
dividends or profit distributions declared by the investee.
13.3.2 A long-term equity investment accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An
associate is an entity over which the Group has significant influence and a joint venture is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the net
assets of the joint arrangement.
Under the equity method, where the initial investment cost of a long-term equity investment
exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition, no adjustment is made to the initial investment 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 recognized in profit or loss for the period, and the cost of the long-
term equity investment is adjusted accordingly.
Under the equity method, the Group recognizes its share of the other comprehensive income and
net profit or loss of the investee for the period as other comprehensive income and investment
income or loss respectively for the period, and the carrying amount of the long-term equity
investment is adjusted accordingly. The carrying amount of the investment shall be reduced by the
portion of any profit distributions or cash dividends declared by the investee that is distributed to
the investing enterprise. The investing enterprise shall adjust the carrying amount of the
long-term equity investment for other changes in owners' equity of the investee (other
than net profits or losses, other comprehensive income and profit distribution), and include the
corresponding adjustment in capital reserve. The Group recognizes its share of the investee's net
profit or loss based on the fair value of the investee's individually identifiable assets at the
acquisition date after making appropriate adjustments. Where the accounting policies and
accounting period adopted by the investee are different from those of the investing enterprise, the
investing enterprise shall adjust the financial statements of the investee to conform to its own
accounting policies and accounting period, and recognise other comprehensive income and
investment income or losses based on the adjusted financial statements. Unrealized profits or
losses resulting from the Group's transactions and assets invested or sold that are not recognized
as business transactions with its associates and joint ventures are recognized as investment income
or loss to the extent that those attributable to the Group's, equity interest are eliminated. However,
unrealized losses resulting from the Group's transactions with its associates and joint ventures
which represent impairment losses on the transferred assets are not eliminated.
- 27 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
13. Long-term equity investments - continued
13.3 Subsequent measurement and recognition of profit or loss - continued
13.3.2 A long-term equity investment accounted for using the equity method - continued
The Group discontinues recognizing its share of net losses of the investee after the carrying
amount of the long-term equity investment together with any long-term interests that in substance
form part of its net investment in the investee are reduced to zero. Except that if the Group has
incurred obligations to assume additional losses, a provision is recognized according to the
obligation expected, and recorded in the investment loss for the period. Where net profits are
subsequently made by the investee, the Group resumes recognizing its share of those profits only
after its share of the profits exceeds the share of losses previously not recognized.
13.4 Disposal of long-term equity investments
On disposal of a long-term equity investment, the difference between the proceeds actually
received and receivable and the carrying amount is recognized in profit or loss for the period.
For long-term equity investments accounted for using the equity method, if the remaining interest
after disposal is still accounted for using the equity method, other comprehensive income
previously recognised for using the equity method is accounted for on the same basis as would
have been required if the investee had directly disposed of related assets or liabilities, and
transferred to profit or loss for the period on a pro rata basis; owners' equity recognised due to
changes in other owners' equity of the investee (other than net profit or loss, other comprehensive
income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.
For long-term equity investments accounted for using the cost method, if the remaining interest
after disposal is still accounted for using the cost method, other comprehensive income previously
recognised for using the equity method or in accordance with the standards for the recognition and
measurement of financial instruments before obtaining the control over the investee, is accounted
for on the same basis as would have been required if the investee had directly disposed of related
assets or liabilities, and transferred to profit or loss for the period on a pro rata basis; changes in
other owners' equity in the investee's net assets recognised under the equity method (other than
net profit or loss, other comprehensive income and profit distribution) is transferred to profit or
loss for the period on a pro rata basis.
14. Investment properties
Investment property is property held to earn rentals or for capital appreciation or both. It includes
a land use right that is leased out; a land use right held for transfer upon capital appreciation; and
a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such
investment property are included in the cost of the investment property if it is probable that
economic benefits associated with an investment property will flow to the Group and the
subsequent expenditures can be measured reliably, other subsequent expenditures are recognized
in profit or loss in the period in which they are incurred.
- 28 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
14. Investment properties - continued
The Group uses the cost model for subsequent measurement of investment property, and adopts a
depreciation or amortization policy for the investment property which is consistent with that for
buildings or land use rights.
When an investment property is sold, transferred, retired or damaged, the Group recognizes the
amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss
for the period.
15. Fixed assets
15.1 Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or
services, for rental to others, or for administrative purposes, and have useful lives of more than
one accounting year. A fixed asset is recognized only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.
Fixed assets are initially measured at cost. Upon being restructured into a stock company, the
fixed assets initially contributed by the state-owned shareholders are recognized based on the
valuation amounts confirmed by the state-owned assets administration department.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and
if it is probable that economic benefits associated with the asset will flow to the Group and the
subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the
replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss in
the period in which they are incurred.
15.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method starting from the
month subsequent to the one in which it is ready for intended use. The useful life, estimated net
residual value rate and annual depreciation rate of each category of fixed assets are as follows:
Estimated Estimated Annual
Category useful lives residual value depreciation rate
Port and terminal facilities 5 - 50 years 10% 1.8%-18%
Container yards and buildings 5 - 40 years 10% 2.25%-18%
Mechanical equipment 5 - 15 years 10% 6%-18%
Motor vehicles, cargo ships and tugboats 5 - 20 years 10% 4.5%-18%
Other equipment 5 years 10% 18%
Estimated net residual value of a fixed asset is the estimated amount that the Group would
currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the
asset were already of the age and in the condition expected at the end of its useful life.
- 29 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
15. Fixed assets - continued
15.3 Other explanations
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from
its use or disposal, the fixed asset is derecognized. When a fixed asset is sold, transferred, retired
or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and
related taxes is recognized in profit or loss for the period.
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least once at each financial year-end, and account for any change
as a change in an accounting estimate.
16. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various
construction expenditures during the construction period, borrowing costs capitalized before it is
ready for intended use and other relevant costs. Construction in progress is not depreciated.
Construction in progress is transferred to a fixed asset when it is ready for intended use.
17. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
asset are capitalized when expenditures for such asset and borrowing costs are incurred and
activities relating to the acquisition, construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired, constructed or produced becomes ready for its
intended use or sale. Capitalization of borrowing costs is suspended during periods in which the
acquisition, construction or production of a qualifying asset is interrupted abnormally and when
the interruption is for a continuous period of more than 3 months. Capitalization is suspended
until the acquisition, construction or production of the asset is resumed. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be
capitalized is the actual interest expense incurred on that borrowing for the period less any bank
interest earned from depositing the borrowed funds before being used on the asset or any
investment income on the temporary investment of those funds. Where funds are borrowed under
general-purpose borrowings, the Group determines the amount of interest to be capitalized on
such borrowings by applying a capitalization rate to the weighted average of the excess of
cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The
capitalization rate is the weighted average of the interest rates applicable to the general-purpose
borrowings.
- 30 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
17. Borrowing Costs - continued
During the capitalization period, exchange differences related to a specific-purpose borrowing
denominated in foreign currency are all capitalized. Exchange differences in connection with
general-purpose borrowings are recognized in profit or loss in the period in which they are
incurred.
18. Intangible assets
Intangible assets include land use rights, sea area use rights and computer software.
An intangible asset is measured initially at cost. Upon being restructured into a stock company,
the intangible assets initial contributed by the state-owned shareholders are recognized based on
the valuation amounts confirmed by the state-owned assets administration department. When an
intangible asset with a finite useful life is available for use, its original cost is amortized over its
estimated useful life.
Residual
Category Amortization method Estimated useful lives(year) value (%)
Land use rights Straight-line method 20-50 -
Computer software Straight-line method 5 -
Sea area use rights Straight-line method 5-50 -
Coastal line use rights Straight-line method 41.9-44.3 -
For an intangible asset with a finite useful life, the Group reviews the useful life and amortization
method at the end of the period, and makes adjustments when necessary.
19. Impairment of long-term assets
The Group assesses at the balance sheet date whether there is any indication that the long-term
equity investments, investment properties measured at cost method, construction in progress,
fixed assets and intangible assets with a finite useful life may be impaired. If there is any
indication that such assets may be impaired, recoverable amounts are estimated for such assets.
Intangible assets with indefinite useful life and intangible assets not yet available for use are
tested for impairment annually, irrespective of whether there is any indication that the assets may
be impaired.
Recoverable amount is estimated on individual basis. If it is not practical to estimate the
recoverable amount of an individual asset, the recoverable amount of the asset group to which the
asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair value
less costs of disposal and the present value of the future cash flows expected to be derived from
the asset.
If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit
is accounted for as an impairment loss and is recognized in profit or loss.
- 31 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
19. Impairment of long-term assets - continued
Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment
testing, goodwill is considered together with the related assets groups, i.e., goodwill is reasonably
allocated to the related assets groups or each of assets groups expected to benefit from the
synergies of the combination. In testing an assets group with goodwill for impairment, an
impairment loss is recognized if the recoverable amount of the assets group or sets of assets
groups (including goodwill) is less than its carrying amount. The impairment loss is firstly
allocated to reduce the carrying amount of any goodwill allocated to such assets group or sets of
assets groups, and then to the other assets of the group pro-rata basis on the basis of the carrying
amount of each asset (other than goodwill) in the group.
Once the impairment loss of above-mentioned asset is recognized, it shall not be reversed in any
subsequent period.
20. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over
the current and subsequent periods (together of more than one year). Long-term prepaid expenses
are amortized using the straight-line method over the expected periods in which benefits are
derived.
21. Employee benefits
21.1 The accounting treatment of short-term employee benefits
Actually occurred short-term employee benefits are recognised as liabilities, with a corresponding
charge to the profit or loss for the period or in the costs of relevant assets in the accounting period
in which employees provide services to the Group. Staff welfare expenses incurred by the Group
are recognised in profit or loss for the period or the costs of relevant assets based on the actually
occurred amounts when it actually occurred. Non-monetary staff welfare expenses are measured
at fair value.
Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance, work injury insurance and maternity insurance, etc. and
payments of housing funds, as well as union running costs and employee education costs provided
in accordance with relevant requirements, are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognised as relevant liabilities,
with a corresponding charge to the profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
- 32 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
21、Employee benefits - continued
21.2 The accounting treatment of post-employment benefits
All the post-employment benefits are defined contribution plans.
The contribution payable to the defined contribution plan is recognised as liabilities, with a
corresponding charge to the profit or loss for the period or in the costs of relevant assets in the
accounting period in which employees provide services to the Group.
21.3 The accounting treatment of termination benefits
When the Group provides termination benefits to employees, employee benefit liabilities are
recognised for termination benefits, with a corresponding charge to the profit or loss for the
period at the earlier of: (1) when the Group cannot unilaterally withdraw the offer of termination
benefits because of the termination plan or a curtailment proposal; and (2) when the Group
recognizes costs or expenses related to restructuring that involves the payment of termination
benefits.
22. Provisions
Provisions are recognised when the Group has a present obligation related with contingencies, it is
probable that the Group will be required to settle that obligation causing an outflow of economic
benefits, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at balance sheet date, taking into account the risks, uncertainties and time
value of money surrounding the obligation. When a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash
flows where the effect of the time value of money is material.
When some or all of the economic benefits required to settle a provision are expected to be
recovered from a third party, a receivable is recognised as an asset if it is virtually certain that
reimbursement will be received and the amount of the receivable should not exceed the carrying
amount of provisions.
23. Revenue
23.1 Revenue from rendering of services
The Group provides load and unload services, tugboat and trailer services, logistics agency and
other related harbor services to customers. Revenue from rendering of services is recognized
when (1) the amount of revenue can be measured reliably; (2) it is probable that the associated
economic benefits will flow to the enterprise; and (3) the associated costs incurred or to be
incurred can be measured reliably.
- 33 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
23. Revenue - continued
23.2 Rental income - continued
The operating lease income of investment property should be recognized in the lease term at the
price stated in contract or agreements using the straight-line method.
23.3 Interest income
Interest income is calculated based on the length of time for which the Group's cash is used by
others and the applicable interest rate.
24. Government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to
the Group at no consideration. A government grant measured at a nominal amount is recognized
immediately in profit or loss for the period.
A government grant is recognized only when the Group can comply with the conditions attached
to the grant and the Group will receive the grant. If a government grant is in the form of a transfer
of a monetary asset, it is measured at the amount received or receivable.
24.1 The accounting treatment of government grants related to assets
A government grant, such as special funds for modern logistics project and special funds for
energy-saving and emission reduction of transportation, related to an asset is recognized as
deferred income, and evenly amortized to profit or loss over the useful life of the related asset.
24.2 The accounting treatment of government grants related to income
A government grant relating to income, if used to compensate the related expenses or losses to be
incurred in subsequent periods, such as financial support funds of business tax converted to VAT
and reward for energy saving, is determined as deferred income and recognised in profit or loss
over the periods in which the related costs are recognized; if used to compensate the related
expenses or losses already incurred, is recognised immediately in profit or loss for the period.
25. Deferred tax assets/ deferred tax liabilities
The income tax expenses include current income tax and deferred income tax.
25.1 Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods
are measured at the amount expected to be paid (or recovered) according to the requirements of
tax laws.
- 34 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
25. Deferred tax assets/ deferred tax liabilities - continued
25.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their
tax base, or between the nil carrying amount of those items that are not recognized as assets or
liabilities and their tax base that can be determined according to tax laws, deferred tax assets and
liabilities are recognized using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred
tax assets for deductible temporary differences are recognized to the extent that it is probable that
taxable profits will be available against which the deductible temporary differences can be utilized.
However, for temporary differences associated with the initial recognition of goodwill and the
initial recognition of an asset or liability arising from a transaction (not a business combination)
that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of
transaction, no deferred tax asset or liability is recognized.
For deductible losses and tax credits that can be carried forward, deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against
which the deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, 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. Deferred tax assets arising from
deductible temporary differences associated with such investments and interests are only
recognized to the extent that it is probable that there will be taxable profits against which to utilize
the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates
applicable in the period in which the asset is realized or the liability is settled according to tax
laws.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except
when they arise from transactions or events that are directly recognized in other comprehensive
income or in equity, in which case they are recognized in other comprehensive income or in
equity, and when they arise from business combinations, in which case they adjust the carrying
amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it
is no longer probable that sufficient taxable profits will be available in the future to allow the
benefit of deferred tax assets to be utilized. Any such reduction in amount is reversed when it
becomes probable that sufficient taxable profits will be available.
- 35 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
25. Deferred tax assets/ deferred tax liabilities - continued
25.3 Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis
or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax
liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and
deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation
authority on either the same taxable entity or different taxable entities which intend either to settle
current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously,
in each future period in which significant amounts of deferred tax assets or liabilities are expected
to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net
basis.
26. Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the
risks and rewards of ownership to the lessee. All other leases are classified as operating leases.
26.1 The accounting treatment of operating leases
26.1.1 The Group as lessee under operating leases
Operating lease payments are recognized on a straight-line basis over the term of the relevant
lease, and are either included in the cost of related asset or charged to profit or loss for the period.
Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are
charged to profit or loss in the period in which they are actually incurred.
26.1.2 The Group as lessor under operating leases
Rental income from operating leases is recognized in profit or loss on a straight-line basis over the
term of the relevant lease. Initial direct costs with more than an insignificant amount are
capitalized when incurred, and are recognized in profit or loss on the same basis as rental income
over the lease term. Other initial direct costs with an insignificant amount are charged in profit or
loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the
period in which they actually arise.
- 36 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
27. Safety Production Cost
According to the Administrative Rules on Provision and Use of Enterprise Safety Production Cost
jointly issued by the Ministry of Finance and the State Administration of Work Safety on 14
February 2012 (filed as Cai Qi [2012] No. 16), safety production cost set aside by the Group is
directly included in the cost of relevant products or recognized in profit or loss for the period, as
well as the special reserve. When safety production cost set aside is utilized, if the costs incurred
can be categorized as expenditure, the costs incurred should be charged against the special reserve.
If the costs set aside are used to build up fixed assets, the costs should be charged to construction
in progress, and reclassified to fixed assets when the safety projects are ready for intended use.
Meantime, expenditures in building up fixed assets are directly charged against the special reserve
with the accumulated depreciation recognized at the same amount. Depreciation will not be made
in the future period on such fixed assets.
28. Critical judgments in applying accounting policies and key assumptions and
uncertainties in accounting estimates
In the application of accounting policies as set out in Note (III), the Company is required to make
judgments, estimates and assumptions about the carrying amounts of items in the financial
statements that cannot be measured accurately, due to the internal uncertainty of the operating
activities. These judgments, estimates and assumptions are based on historical experiences of the
Company's management as well as other factors that are considered to be relevant. Actual results
may differ from these estimates.
The Company regularly reviews the judgments, estimates and assumptions on a going concern
basis. Changes in accounting estimates which only affect the current period should be recognized
in current period; changes which not only affect the current but the future periods should be
recognized in current and future periods. At the balance sheet date, key assumptions and
uncertainties that are likely to lead to significant adjustments to the book values of assets and
liabilities in the future are:
Goodwill impairment
For the purpose of impairment testing, the present value of the expected future cash flows of the
assets group or portfolio including goodwill shall be calculated, and such expected future cash
flows shall be estimated. Meantime, a pre-tax rate shall be determined that should reflect the time
value of money on the current market and the specific asset risks.
- 37 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING
ESTIMATES - continued
28. Critical judgments in applying accounting policies and key assumptions and
uncertainties in accounting estimates - continued
Recognition of deferred tax
The Group calculates and makes provision for deferred income tax liabilities according to the
profit distribution plan of subsidiaries, associates and the joint ventures subject to the related law.
For retained earnings which are not allocated by the investment company, since the profits will be
used to invest the company's daily operation and future development, no deferred income tax
liabilities are recognized. If the actually distributed profits in the future are more or less than those
expected, corresponding deferred tax liabilities will be recognized or reversed at the earlier of
profits distribution date and the declaration date, in the profit and loss of the current period.
Deferred tax assets are recognized based on the deductible temporary difference and the
corresponding tax rate, to the extent that it has become probable that future taxable profit will be
available for the deductible temporary difference. If in the future the actual taxable income does
not coincide with the amount currently expected, the deferred tax assets resulting will be
recognized or reversed in the period when actually incurred, in profit or loss.
(IV) TAXES
1. Major taxes and tax rates
Taxes Tax basis Tax rate
Enterprise income tax Taxable income 25%
Load and unload income, tugboat income, trailer income,
6% (Note 1)
warehousing income and agency income
Taxable income from vehicle maintenance and utilities supplies
Value-add Tax 13% and17%
on ships in shore
Taxable income from sales of scraps and rental income from
3%
tangible property
Taxable rental income from intangible property and labor
Business tax 5 %(Note 2)
dispatching income
Urban maintenance and 5% and 7 %
VAT and Business tax paid
construction tax (Note 3)
Education surcharges VAT and Business tax paid 3%
Regional education surcharges VAT and Business tax paid 2%
Entities using different enterprise income tax rate:
Name of entity Enterprise income tax rate
Chiwan Wharf Holdings (HK) Limited 16.50%
Chiwan Shipping (HK) Company Limited 16.50%
Xuanyun Development Company Limited 16.50%
- 38 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(IV) TAXES - continued
1. Major taxes and tax rates - continued
Note 1: According to the Notice on Taxable Services Subject to "VAT" Tax Rate of Zero and
Exemption issued by the Ministry of Finance and State Administration of Taxation (filed
as Cai Shui [2011] No.131), and approvals released by Shekou National Taxation Bureau
in Shenzhen (filed as Jian Mian Bei [2012] No.0686, No.0693, No.0834 and .Jian Mian
Bei [2013] No.0136 respectively), Container Terminal Company Limited, Shenzhen
Chiwan Harbor Container Company Limited and Shenzhen Chiwan Tugboat Company
Limited, the subsidiaries of the Company, are exempt from "VAT" when providing
logistics support service (except for warehousing service).
Note 2: As per the Notice of the Ministry of Finance on Full Trial Implementation of Business
Tax to VAT (Document MOF [2016] No. 36), the Group shall pay business tax on its real
estate rental income and labor dispatch income for January-April 2016, and pay VAT on
these items from May 2016.
Note 3: The subsidiaries set up in Shenzhen are subject to an urban maintenance and construction
tax rate of 7%, and those set up in Dongguan are subject to an urban maintenance and
construction tax rate of 5%.
2. Tax preference
On 21 February 2012, Machong Branch of National Taxation Bureau in Dongguan City approved
that Dongguan Chiwan Wharf Co., Ltd (DGW), a subsidiary of the Group, was subject to tax
preference of "3-year exemption followed by 3-year half reduction" commencing from 2010.
2015 is its third year with tax preference of half reduction; hence, DGW has calculated its income
tax at a rate of 12.5% (2014: 12.5%). The corporate income tax preferential policy of “exemption
for the first three years and half reduction for the second three years” has come to an end in 2016.
On 8 July 2014, Machong Branch of National Taxation Bureau in Dongguan City approved that
Dongguan Chiwan Terminal Co., Ltd (DGT), a subsidiary of the Group, was subject to tax
preference of "3-year exemption followed by 3-year half reduction" commencing from 2014.
DGT is exempted from income tax in 2016 (2015: exempted from enterprise income tax).
According to Doc. [2013] No.3 issued by Shekou Local Taxation Bureau In Shenzhen, the profits
derived from berth #13A of Shenzhen Chiwan Harbour Container Company Limited, are entitled
to full exemption from income tax for three years commencing from its first profit making year
and 50% exemption for the following three year when certain requirements are met. 2016 is the
fifth profit-making year of berth #13A; hence, the tax rate of 12.5% was adopted to calculate its
enterprise income tax. (2015: 12.5%).
According to the joint verification by Science and Technology Innovation Commission of
Shenzhen Municipality, Finance Commission of Shenzhen Municipality, Shenzhen Provincial
Office, SAT and Shenzhen Local Taxation Bureau , the DGT, a subsidiary of the Group, is a high-
tech enterprise, subject to tax preference of 3-year enterprise income tax rate of 15%
commencing in 2014. Hence, Chiwan Container Terminal Company Limited has calculated its
income tax at a rate of 15% in 2016 (2015: 15%).
- 39 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Unit: RMB
Item Closing balance Opening balance
Cash:
RMB 18,371.96 24,361.90
USD 470.82 461.05
HKD 1,376.49 3,824.97
Subtotal 20,219.27 28,647.92
Bank deposit:
RMB 271,047,140.42 409,906,378.32
USD 108,645,822.77 164,610,997.05
HKD 25,292,497.89 108,138,907.80
Subtotal 404,985,461.08 682,656,283.17
Other cash and bank balances (Note)
RMB 866,346.64 453,192.57
USD - -
HKD - -
Subtotal 866,346.64 453,192.57
Total 405,872,026.99 683,138,123.66
Including: The total amount of funds deposited in overseas 621,2991.61 88,863,245.66
Note: The balance of other cash and bank balances is mainly the amount deposited in the
securities settlement account of China Merchants Securities Co., Ltd.
2. Notes receivable
Unit: RMB
Category Closing balance Opening balance
Bank acceptance bills 700,000.00 3,327,000.00
Note: No notes receivable pledged, endorsed or discounted at the year end.
3. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: RMB
Closing balance Opening balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Proportion Proportion Proportion Proportion
Item Amount (%) Amount (%) Book value Amount (%) Amount (%) Book value
Accounts receivable that are individually
significant and for which bad debt provision has - - - - - - - - - -
been assessed individually
Accounts receivable for which bad debt provision has been assessed by credit risk portfolios
Portfolio 1 7,270,290.07 2.98 - - 7,270,290.07 12,418,434.10 6.56 - - 12,418,434.10
Portfolio 2 236,335,708.38 97.02 483,050.40 0.20 235,852,657.98 176,789,459.37 93.44 191,328.62 0.11 176,598,130.76
Subtotal of portfolios 243,605,998.45 100.00 483,050.40 0.20 243,122,948.05 189,207,893.47 100.00 191,328.62 0.10 189,016,564.86
Accounts receivable that are not individually
significant but for which bad debt provision has -
been assessed individually
Total 243,605,998.45 100.00 483,050.40 0.20 243,122,948.05 189,207,893.47 100.00 191,328.62 0.10 189,016,564.86
- 40 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
3. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued
Accounts receivable portfolios for which bad debt provision has been assessed using the
aging analysis approach:
Unit: RMB
Closing balance Opening balance
Carrying Bad debt Proportion Carrying Bad debt Proportion
Aging amount provision (%) Book value amount provision (%) Book value
Within 1 year 234,757,667.60 134,666.47 0.06 234,623,001.12 176,739,529.66 142,974.91 0.08 176,596,554.76
More than 1 year but not
1,537,071.07 307,414.21 20.00 1,229,656.85 1,970.00 394.00 20.00 1,576.00
exceeding 2 years
More than 2 years but not
- - - - - - - -
exceeding 3 years
More than 3 years 40,969.71 40,969.71 100.00 - 47,959.71 47,959.71 100.00 -
Total 236,335,708.38 483,050.39 0.20 235,852,657.97 176,789,459.37 191,328.62 0.11 176,598,130.76
(2) Bad debt provision, reversal and written-off
Unit: RMB
bad debt Decrease
Item Opening balance provision Reversal Write-off Closing balance
Accounts receivable 191,328.62 291,721.78 - - 483,050.40
(3) There are no accounts receivables that have been written off during the year.
(4) Top five balances of accounts receivable classified by debtor:
Unit: RMB
Proportion of the
amount to the
Relationship with total accounts
Name of customer the Company Amount receivable (%) Bad debt provision
Customer A Customer 29,464,326.68 12.10 -
Customer B Customer 29,124,355.80 11.96 237,941.20
Customer C Customer 25,793,208.00 10.59 -
Customer D Customer 22,826,987.28 9.37 -
Customer E Customer 7,147,512.59 2.93 210.00
Total 114,356,390.35 46.95 238,151.20
4. Prepayments
(1) Prepayments presented by aging
Unit: RMB
Closing balance Opening balance
Aging Amount Proportion (%) Amount Proportion (%)
Within 1 year 3,157,334.70 94.75 2,503,775.41 93.47
More than 1 year
175,000.00 5.25 175,000.00 6.53
but not exceeding 2 years
Total 3,332,334.70 100.00 2,678,775.41 100.00
- 41 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
4. Prepayments - continued
(2) Top five balances of prepayments classified by entities
Unit: RMB
Proportion of
the closing
balance to the
total
Relationship with prepayments
Entities the Company Closing balance (%)
China State Construction Harbour Construction Co., Ltd. Supplier 1,383,738.00 41.52
Shenzhen branch of China Life Insurance Co., Ltd. Supplier 497,585.07 14.93
Shenzhen MMatch Novel Materials Co., Ltd. Supplier 231,200.00 6.94
Beijing Aopeng Technology Development Co., Ltd. Supplier 175,000.00 5.25
Shenzhen branch of China Life Insurance Co., Ltd. Supplier 90,000.00 2.70
Total 2,377,523.07 71.34
(3) The Group has no significant aging over one year prepayment.
5. Interest receivable
(1) Interest receivable
Unit: RMB
Category Closing balance Opening balance
Fixed term deposit - 72,773.05
(2) The Group has no significant overdue interest.
6. Dividends receivable
(1) Dividends receivable
Unit: RMB
Impairment
Opening Closing appeared or
Item balance Increase Decrease balance not
China Overseas Harbor Affairs
- 36,132,189.03 36,132,189.03 - No
(Laizhou) Co., Ltd.
China Ocean Shipping Agency
- 5,892,187.85 5,892,187.85 - No
(Shenzhen) Company Limited
Jiang Su Ninghu Expressway
- 400,000.00 400,000.00 - No
Company Limited
MEDIA PORT INVESTMENTS
LIMITED
- 34,085,893.00 34,085,893.00 - No
Total - 76,510,269.88 76,510,269.88 -
(2) The Group has no dividends receivable aging more than one year.
- 42 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables
(1) Disclosure of other receivables by categories:
Unit: RMB
Closing balance Opening balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Proportion Proportion Proportion Proportion
Category Amount (%) Amount (%) Book value Amount (%) Amount (%) Book value
Other receivables that are individually
significant and for which bad debt - - - - - - - - - -
provision has been assessed individually
Other receivables for which bad debt provision has been assessed by credit risk portfolios
Portfolio 1
24,649,075.50 53.23 100,000.00 0.41 24,549,075.50 12,390,252.83 80.02 100,000.00 0.81 12,290,252.83
Portfolio 2
21,654,409.34 46.77 472,229.22 2.18 21,182,180.12 3,094,402.45 19.98 475,906.84 15.38 2,618,495.61
Subtotal of portfolios
46,303,484.84 100.00 572,229.22 1.24 45,731,255.62 15,484,655.28 100.00 575,906.84 3.72 14,908,748.44
Other receivables that are not individually
significant but for which bad debt provision - - - - - - - - - -
has been assessed individually
Total
46,303,484.84 100.00 572,229.22 1.24 45,731,255.62 15,484,655.28 100.00 575,906.84 3.72 14,908,748.44
Other receivables portfolios for which bad debt provision has been assessed using the aging
analysis
Unit: RMB
Closing balance Opening balance
Carrying Bad debt Proportion Carrying Bad debt Proportion
Aging amount provision (%) Book value amount provision (%) Book value
Within 1 year 21,178,250.05 3,434.53 0.02 21,174,815.52 2,622,437.97 10,265.61 0.39 2,612,172.36
More than 1 year
6,794.81 1,358.96 20.00 5,435.85 2,600.00 520.00 20.00 2,080.00
but not exceeding 2 years
More than 2 years
3,857.50 1,928.75 50.00 1,928.75 8,486.50 4,243.25 50.00 4,243.25
but not exceeding 3 years
More than 3 years 465,506.98 465,506.98 100.00 - 460,877.98 460,877.98 100.00 -
Total 21,654,409.34 472,229.22 2.18 21,182,180.12 3,094,402.45 475,906.84 15.38 2,618,495.61
(2) Increase, reverse and write-off of bad debt provision
Unit: RMB
Decrease Translate
foreign currency
Item Opening balance Increase Reversal Write-off statements Closing balance
Other receivable 575,906.84 22,089.34 25,766.96 - - 572,229.22
(3) Other receivable has not been written off during the year.
(4) Disclosure of other receivables by nature
Unit: RMB
Item Closing balance Opening balance
Temporary payments 16,545,528.12 4,789,080.04
Deposits 4,438,902.44 4,469,460.16
Others 25,319,054.28 6,226,115.08
Total 46,303,484.84 15,484,655.28
- 43 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
7. Other receivables - continued
(5) Top five balances of other receivables classified by creditors
Unit: RMB
Proportion of the
amount to the total
accounts receivable
Name of company Nature of the fund Amount Aging (%) Bad debt provision
Watercourse occupancy
Dongguan Finance Bureau 14,469,500.00 Within one year 31.25 -
fee
Shenzhen Mawan Port Temporary payments
9,004,511.91 Within one year 19.45 -
Co., Ltd.("SMP") from related parties
ShenzhenMawan Terminals Temporary payments
5,816,232.37 Within one year 12.56 -
Co., Ltd.("SMT") from related parties
Temporary payments
CMBL 1,957,705.47 Within one year 4.23 -
from related parties
Shenzhen Nanhai Grain
Land rents 1,066,345.10 Within one year 2.30 -
Industrial Co., Ltd.
Total 32,314,294.85 69.79 -
8. Inventories
(1) Categories of inventories
Unit: RMB
30 Jun. 2016 31 Dec. 2015
Provision for Provision for
decline in value of decline in value of
Item Carrying amount inventories Book value Carrying amount inventories Book value
Spare parts 18,108,961.97 972,744.93 17,136,217.04 17,569,310.18 972,744.93 16,596,565.25
Fuel 745,863.29 - 745,863.29 703,742.41 - 703,742.41
Total 18,854,825.26 972,744.93 17,882,080.33 18,273,052.59 972,744.93 17,300,307.66
(2) Provision for decline in value of inventories
Unit: RMB
Decrease
Item Opening balance Increase Reversal Write-off Closing balance
Spare parts 972,744.93 - - - 972,744.93
9、Other current assets
Unit: RMB
Item Closing balance Opening balance
Added-value tax to be certified and deducted 12,584,516.23 12,889,208.71
- 44 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
10. Available-for-sale financial assets
(1) Available-for-sale financial assets
Unit: RMB
Closing balance Opening balance
Carrying Provision for Carrying Provision for
Item amount impairment Book value amount impairment Book value
Available-for-sale
25,377,500.00 3,128,300.00 22,249,200.00 25,787,500.00 3,128,300.00 22,659,200.00
equity instruments
Measured at fair value 8,340,000.00 - 8,340,000.00 8,750,000.00 - 8,750,000.00
Measured at cost 17,037,500.00 3,128,300.00 13,909,200.00 17,037,500.00 3,128,300.00 13,909,200.00
Total 25,377,500.00 3,128,300.00 22,249,200.00 25,787,500.00 3,128,300.00 22,659,200.00
(2) Available-for-sale financial assets measured at fair value at the end of the year
Unit: RMB
Classification of available-for-sale financial assets Available-for-sale equity instruments
Cost of equity instruments 1,120,000.00
Fair value 8,340,000.00
Accumulated amount of changes in fair value included in the other
7,220,000.00
comprehensive income
Provision amount for impairment -
Note: The available-for-sale financial assets held by the Company represent the circulating shares
of Jiang Su Ninghu Expressway Company Ltd at the end of the year.
(3) Available-for-sale financial assets measured at cost at the end of the year
Unit: RMB
Carrying amount Provision for impairment Proportion of
ownership Cash
interests in dividends
Opening Closing Opening Closing the investee for the
Investees balance Increase Decrease balance balance Increase Decrease balance (%) period
Shenzhen Petro-chemical
3,500,000.00 - - 3,500,000.00 3,117,800.00 - - 3,117,800.00 0.26 -
Industry (Group) Company Limited
Guangdong Guang Jian
27,500.00 - - 27,500.00 10,500.00 - - 10,500.00 0.02 -
Group Company Limited
China Ocean Shipping
Agency (Shenzhen) 13,510,000.00 - - 13,510,000.00 - - - - 15.00 5,892,187.85
Company Limited
Total 17,037,500.00 - - 17,037,500.00 3,128,300.00 - - 3,128,300.00 5,892,187.85
Note: The available-for-sale financial assets measured at cost are equity investments of Shenzhen
Petro-chemical Industry (Group) Company Limited, Guangdong Guang Jian Group
Company Limited and China Ocean Shipping Agency (Shenzhen) Company Limited. None
of the stocks of above-mentioned companies are traded in market or fair value could be
measured reliably, hence, the Group measures these equity investments under cost method.
(4) Movements of available-for-sale financial assets in the reporting period
Unit: RMB
Category Available-for-sale equity instruments
Provision amount for impairment at the beginning of the year 3,128,300.00
Increase in the current year -
Decrease in the current year -
Provision amount for impairment at the end of the year 3,128,300.00
- 45 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term equity investments
Unit: RMB
Changes
Investment profit Reconciling items from Cash dividends or Closing value
Accounting or loss under equity other comprehensive Other equity profits announced of Provision for of provision
Investee method Investment cost Opening balance Increase Decrease method income movements issuance impairment Others Closing balance for impairment
I. Joint ventures
China Overseas Harbor Affairs (Laizhou) Co., Ltd.(Note 1) Equity method 749,655,300.00 770,930,325.06 - - 37,197,754.16 - - （36,132,189.03) - - 771,995,890.19 -
II. Associates
China Merchants Holdings (International) Information Technology
Equity method 1,875,000.00 12,833,857.95 - - 1,674,220.38 - - - - - 14,508,078.33 -
Company Ltd.
CMBL Equity method 280,000,000.00 326,663,063.66 - - 7,747,007.96 - 1,915,642.10 - - - 336,325,713.72 -
MediaPortInvestmentsLimited("MPIL") (Note 2) Equity method 139,932.00 336,597,728.49 - - 16,389,086.06 - - (36,572,459.27) - - 316,414,355.28 -
Subtotal 282,014,932.00 676,094,650.10 - - 25,810,314.40 - 1,915,642.10 (36,572,459.27) - - 667,248,147.33 -
Total 1,031,670,232.00 1,447,024,975.16 - - 63,008,068.56 - 1,915,642.10 (72,704,648.30) - - 1,439,244,037.52 -
Note 1: The Company holds 40% equity interests in China Overseas Harbor Affairs (Laizhou) Co., Ltd. (hereinafter "COHA (Laizhou)"). According
to its articles of incorporation, significant matters such as operating decisions can be passed only when jointly approved by directors of the
Company and the other ventures. Therefore, COHA (Laizhou) is deemed to be under common control of Chiwan Wharf and the other
shareholders; accordingly COHA (Laizhou) is accounted for as a joint venture.
Note 2: 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 "Agreement on Cooperation and
Development of Mawan Port" (the "Development Agreement") to incorporate three joint ventures, namely Shenzhen Mawan Wharf Co.,
Ltd.("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 jointly set up
Media Port Investments Limited (the "MPIL") with equal percentage of equity held respectively. MPIL then incorporates the
abovementioned three joint ventures together with SSOG, and MPIL has 60% equity in each of the three joint ventures.
- 46 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Investment properties
(1) Investment properties measured under cost method
Unit: RMB
Opening Closing
carrying carrying
Item amount Increase Decrease amount
I. Total original carrying amount 47,138,271.09 - - 47,138,271.09
1. Buildings 17,054,506.09 - - 17,054,506.09
2. Land use right 30,083,765.00 - - 30,083,765.00
II. Total accumulated depreciation
20,390,475.71 460,990.32 - 20,851,466.03
and amortization
1. Buildings 5,755,252.68 188,410.86 - 5,943,663.54
2. Land use right 14,635,223.03 272,579.46 - 14,907,802.49
III. Total net book value of investment
26,747,795.38 - - 26,286,805.06
property
1. Buildings 11,299,253.41 - - 11,110,842.55
2. Land use right 15,448,541.97 - - 15,175,962.51
IV. Total accumulated amount of
provision for impairment losses of - - - -
investment property
1. Buildings - - - -
2. Land use right - - - -
V. Total carrying value of
26,747,795.38 - - 26,286,805.06
investment property
1. Buildings 11,299,253.41 - - 11,110,842.55
2. Land use right 15,448,541.97 - - 15,175,962.51
Note: Depreciation and amortization for the current period is RMB460,990.32.
(2) Investment properties without ownership certificates
As of 30 Jun. 2016, the Group has not obtained any ownership certificates of investment
properties. For buildings located within the scope of Chiwan watershed with net book value of
RMB22,918,774.71 (original carrying amount: RMB43,589,738.00), the underlying reasons and
management's resolutions for obtaining certificates of title are set out in Note (V) 15, and the rest
certificates of title are under the process of application.
- 47 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
13. Fixed assets
(1) Fixed assets
Unit: RMB
Opening carrying Closing carrying
Item amount Increase Decrease amount
I. Total original carrying amount 5,521,417,273.83 3,869,647.61 10,235,844.25 5,515,051,077.19
Including: Port and terminal facilities 1,991,233,464.06 198,717.94 220,458.31 1,991,211,723.69
Container yards and buildings 1,062,056,772.68 203,264.90 540,523.32 1,061,719,514.26
Mechanical equipment 2,070,831,567.49 724,837.69 5,339,776.29 2,066,216,628.89
Motor vehicles, cargo ships
286,170,237.48 - 2,547,096.02 283,623,141.46
and tugboats
Other equipment 111,125,232.12 2,742,827.08 1,587,990.31 112,280,068.89
II. Total accumulated depreciation 2,250,816,840.79 96,908,007.22 8,277,187.80 2,339,447,660.21
Including: Port and terminal facilities 436,187,670.38 20,661,414.61 80,275.25 456,768,809.74
Container yards and buildings 260,763,251.13 12,300,780.94 486,756.44 272,577,275.63
Mechanical equipment 1,317,849,657.09 52,790,102.66 4,001,207.75 1,366,638,552.00
Motor vehicles, cargo ships
153,286,793.39 6,895,959.30 2,292,866.59 157,889,886.10
and tugboats
Other equipment 82,729,468.80 4,259,749.71 1,416,081.77 85,573,136.74
III. Total net book value of fixed assets 3,270,600,433.04 - - 3,175,603,416.98
Including: Port and terminal facilities 1,555,045,793.68 - - 1,534,442,913.95
Container yards and buildings 801,293,521.55 - - 789,142,238.63
Mechanical equipment 752,981,910.40 - - 699,578,076.89
Motor vehicles, cargo ships
132,883,444.09 - - 125,733,255.36
and tugboats
Other equipment 28,395,763.32 - - 26,706,932.15
IV. Total provision for impairment losses 57,419,468.96 - - 57,419,468.96
Including: Port and terminal facilities 4,261,599.48 - - 4,261,599.48
Container yards and buildings 53,157,869.48 - - 53,157,869.48
Mechanical equipment - - - -
Motor vehicles, cargo ships
- - - -
and tugboats
Other equipment - - - -
V. Total carrying value of fixed assets 3,213,180,964.08 - - 3,118,183,948.02
Including: Port and terminal facilities 1,550,784,194.20 - - 1,530,181,314.47
Container yards and buildings 748,135,652.07 - - 735,984,369.15
Mechanical equipment 752,981,910.40 - - 699,578,076.89
Motor vehicles, cargo ships
132,883,444.09 - - 125,733,255.36
and tugboats
Other equipment 28,395,763.32 - - 26,706,932.15
Note 1: The increase of total original carrying amount for current period consists of new
acquisition of RMB1,204,535.79, an increase of RMB2,665,111.82 of amount transferred
from construction in progress. The decrease of total original carrying amount for current
period consists of a decrease of RMB10,104,580.48 resulting from disposal of fixed
assets.
- 48 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
13. Fixed assets - continued
Note 2: The increase in accumulated depreciation for current period consists of charge for the
current year of RMB96,908,007.22. The decrease in accumulated depreciation for current
period consists of a decrease of RMB8,277,187.28 resulting from disposal of fixed assets .
Note 3: As of 30 Jun. 2016, the Group has no fixed assets that used as collateral.
Note 4: As of 30 Jun. 2016, the certificates of title for the Group's buildings with a net book value
of RMB325,250,949.13 (total original carrying amount: RMB439,065,086.69) have not
yet been obtained. For buildings located within the scope of Chiwan watershed with net
book value of RMB29,344,505.38 (original carrying amount: RMB119,204,302.62), the
underlying reasons and management's solutions for obtaining certificates of title are set
out in Note (V) 15, and the rest certificates of title are under the process of application.
(2) Other issues
Unit: RMB
Item Amount Note
The original amounts of fixed assets fully depreciated but still
686,411,348.15
in use at 30 Jun. 2016
Closing original amount of temporary idle fixed assets -
Fixed assets disposed or retired in the current year -
Original amount of fixed assets disposed or retired
10,104,580.48
in the current year
Net book value of fixed assets disposed or retired
1,827,873.35
in the current year
Gain or loss on disposal or retire of fixed assets (252,117.45)
14. Construction in progress
(1) Details of construction in progress are as follows:
Unit: RMB
Closing Balance Opening Balance
Provision for Provision for
Item Carrying amount impairment Book value Carrying amount impairment Book value
Relavent construction work
of 50.86 meters coastline, 4,994,656.36 - 4,994,656.36 4,994,656.36 - 4,994,656.36
Machong Port
Supporting equipment & facilities
renovation project, 5,938,912.87 - 5,938,912.87 4,802,731.27 - 4,802,731.27
Chiwan Port terminal
Bulk grain warehouses
19,549,290.82 - 19,549,290.82 2,526,814.00 - 2,526,814.00
Phase II,Machong Port
Technological transformation of
3,894,286.37 - 3,894,286.37 1,447,719.40 - 1,447,719.40
Berth 7# , Chiwan Port
Others 7,920,351.95 - 7,920,351.95 8,450,163.75 - 8,450,163.75
Total 42,297,498.37 - 42,297,498.37 22,222,084.78 - 22,222,084.78
- 49 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
14. Construction in progress - continued
(2) Changes in significant construction in progress
Unit: RMB
Proportion of Interest
accumulated Amount of Including: capitalisation
Transfer to fixed Decrease in construction accumulated capitalised rate for the
Budget Opening Increase in the and intangible the current investment in Construction capitalised interest for the currentperiod
Item amount balance current period assets period Closing balance budget progress interest current period (%) Capital source
Relavent construction work of 50.86 meters
8,819,228.91 4,994,656.36 - - - 4,994,656.36 56.63% 56.63% - - 0.00% Self-funding
coastline, Machong Port
Supporting equipment & facilities
30,500,000.00 4,802,731.27 1,136,181.60 - - 5,938,912.87 19.47% 27.31% - - 0.00% Self-funding
renovation project, Chiwan Port terminal
Bulk grain warehouses Phase II,
320,000,000.00 2,526,814.00 17,022,476.82 - - 19,549,290.82 6.11% 6.11% - - 0.00% Self-funding
Machong Port
Technological transformation of
29,500,000.00 1,447,719.40 2,446,566.97 - - 3,894,286.37 13.20% 13.20% - - 0.00% Self-funding
Berth 7# , Chiwan Port
Others 37,266,722.40 8,450,163.75 2,255,708.34 2,665,111.82 120,408.32 7,920,351.95 28.73% 28.73% - - 0.00% Self-funding
Total 426,085,951.31 22,222,084.78 22,860,933.73 2,665,111.82 120,408.32 42,297,498.37 - - - - -
- 50 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Intangible assets
Unit: RMB
Opening carrying Closing carrying
Item amount Increase Decrease amount
I. Total original carrying amount 1,603,264,701.83 1,432,215.08 116,787.00 1,604,580,129.91
Land use rights - prepaid under lease (Note 2) 1,198,990,903.76 - - 1,198,990,903.76
Land use rights - prepaid under investment (Note 2) 122,623,476.00 - - 122,623,476.00
Land use rights - purchased 116,702,512.59 - - 116,702,512.59
Computer software 32,061,672.48 381,132.08 - 32,442,804.56
Sea area use rights 72,886,137.00 1,051,083.00 116,787.00 73,820,433.00
Coast line use rights 60,000,000.00 - - 60,000,000.00
II. Total accumulated amortization 556,368,079.85 19,233,130.89 116,787.00 575,484,423.74
Land use rights - prepaid under lease (Note 2) 459,820,965.73 14,188,775.46 - 474,009,741.19
Land use rights - prepaid under investment (Note 2) 57,428,661.26 1,226,234.76 - 58,654,896.02
Land use rights - purchased 6,475,618.84 1,193,113.08 - 7,668,731.92
Computer software 22,130,915.57 1,198,195.28 - 23,329,110.85
Sea area use rights 9,355,651.15 733,051.93 116,787.00 9,971,916.08
Coast line use rights 1,156,267.30 693,760.38 - 1,850,027.68
III.Total net carrying amount of intangible assets 1,046,896,621.98 1,029,095,706.17
Land use rights - prepaid under lease (Note 2) 739,169,938.03 724,981,162.57
Land use rights - prepaid under investment (Note 2) 65,194,814.74 63,968,579.98
Land use rights - purchased 110,226,893.75 109,033,780.67
Computer software 9,930,756.91 9,113,693.71
Sea area use rights 63,530,485.85 63,848,516.92
Coast line use rights 58,843,732.70 58,149,972.32
IV.Total provision for impairment - - - -
Land use rights - prepaid under lease - - - -
Land use rights - prepaid under investment - - - -
Land use rights - purchased - - - -
Computer software - - - -
Sea area use rights - - - -
Coast line use rights - - - -
V.Total carrying value of intangible assets 1,046,896,621.98 1,029,095,706.17
Land use rights - prepaid under lease (Note 2) 739,169,938.03 724,981,162.57
Land use rights - prepaid under investment (Note 2) 65,194,814.74 63,968,579.98
Land use rights - purchased 110,226,893.75 109,033,780.67
Computer software 9,930,756.91 9,113,693.71
Sea area use rights 63,530,485.85 63,848,516.92
Coast line use rights 58,843,732.70 58,149,972.32
Note 1: The amortization for the current period is RMB19,233,130.89.
- 51 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
15. Intangible assets - continued
Note 2: The Group has obtained the land use right for berth and container yard located in Chiwan
watershed area with original amount of RMB1,400,288,984.00 from Nanshan Group. The
tenure ranging between 20 - 50 years. The land with a total area of 1,049,946.00 square
meters consists of an area of 2.2 square kilometers invested by Shenzhen Investment
Holding Corporation, a stockholder of Nanshan Group, and a land arising from marine
reclamation by Nanshan Group.
The land use rights for the plot of 270,692 sq. meters (original amount:
RMB122,623,476.00) was contributed by Nanshan Group as capital injection at corporate
restructuring of the Company. The rest land use rights were obtained from Nanshan Group
by long-term leasing.
Since Nanshan Group has yet obtained official certificates of land use rights for the above
lands so far, the Group has no certificates of title for relevant land and buildings either.
On 20 March 2001, 18 June 2003 and 29 September 2004, Nanshan Group made
commitments on all the land use rights obtained by the Group from it as of the
commitment date respectively: Nanshan Group has no right to withdraw the commitment
and will unconditionally consent that, if the Group suffers loss, bears expense and liability,
is claimed for compensation or runs into lawsuit, for any actually or potentially illegal and
non-executable issues arising from land use right agreements and their relevant documents
which signed or will be signed by the Group, Nanshan Group guarantees that the acquiring
party and its inheritor of those land use right will be fully exempted from above issues.
Hence, directors of the Company believe there is no significant impairment risk in respect
of the absence of land use right certificate and no significant contingent liability.
The management notes that Nanshan Group is positively approaching relevant government
authorities to solve the above historical land problem; however, it cannot predict the exact
time to obtain legal certificates of title for above land and relevant building property
ownership certificates.
As of 30 Jun. 2016, lease agreements for land use rights with total original carrying
amount of RMB99,320,299.24 mentioned above have expired. The underlying land with
an area of 146,613.00 m2 consists of: a returned cultivated land of Chiwan Village with an
area of 9,897.70 m2 (original carrying amount: RMB7,918,160.00) being returned to
Shenzhen Chiwan Shekou Industrial Co., Ltd; 8 # storeroom with an area of 6,118.50 m2
not being renewal any more, and the remaining land being subject to renewal, but the
renewal of land contracts for the remaining land are under way.
- 52 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
16. Goodwill
Unit: RMB
Increase for the Decrease for the
Investee Opening balance current period current period Closing balance
Chiwan Container Terminal
10,858,898.17 - - 10,858,898.17
Company Limited
Note: The goodwill arose from the acquisition of the minority interests in Chiwan Container
Terminal Company Limited in prior years, being the difference of the additional cost of
investment and the Group's share of the fair value of the identifiable net assets in Chiwan
Container Terminal Company Limited. Based on past years' operation performance and
development forecast of the Company, the management holds the opinion that these is no
need to allocate impairment to goodwill arising from the investment of Chiwan Container
Terminal Company Limited.
17. Long-term prepaid expenses
Unit: RMB
Residual
useful
Item Opening balance Increase Amortization Other decreases Closing balance Original Cost life
Construction expenditure of
56,946,077.44 - 1,028,451.80 - 55,917,625.64 69,514,455.56 27 years
Tonggu sea-route (Note )
Golf membership 295,732.53 - 16,773.24 212,716.59 66,242.70 2,443,549.00 1-6 years
Total 57,241,809.97 - 1,045,225.04 212,716.59 55,983,868.34 71,958,004.56
Note 1: In 2007, Shenzhen municipal government launched 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 ("Connecting Sea Route"). In
compliance with the government resolution, 60% of dredging expenditure would be born
by the investee companies while the remaining 40% born by the government. 35% of
the expenditure born by the investee companies was assumed by the port operators in
Western Shenzhen port , and the allocation portion to each operator was determined on
the basis of function, waterfront length, and berthing ship of each port operator. The
Tonggu sea route construction expenses allocated to the Group is amortized on a
straight-line basis over 35 years of the expected useful lives of Connecting Sea Route
starting from 2008 when the Tonggu Sea Route is put into use.
18. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets that are presented at the net amount without offsetting
Unit: RMB
Closing balance Opening balance
Deductible temporary Deductible temporary Deferred tax
Item differences Deferred tax assets differences assets
Deferred income 24,769,557.06 6,192,389.27 24,769,557.06 6,192,389.27
Provision for impairment losses of assets 1,256,892.70 199,181.44 1,256,892.70 199,181.44
Depreciation of fixed assets and amortization
186,560.41 46,640.11 186,560.41 46,640.11
of intangible assets
Organization costs 24,827,835.78 4,663,638.92 24,827,835.78 4,663,638.92
Others 959,082.56 172,471.08 959,082.56 172,471.08
Total 51,999,928.51 11,274,320.82 51,999,928.51 11,274,320.82
- 53 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
18. Deferred tax assets and deferred tax liabilities - continued
(2) Deferred tax liabilities that are presented at the net amount without offsetting
Unit: RMB
Closing balance Opening balance
Taxable temporary Deferred tax Taxable temporary
Item differences liabilities differences Deferred tax liabilities
Depreciation of fixed assets and
- - - -
amortization of intangible assets
Change in fair value of available-
7,220,000.00 1,805,000.00 7,630,000.00 1,907,500.00
for-sale financial assets
Total 7,220,000.00 1,805,000.00 7,630,000.00 1,907,500.00
(3) Deferred tax assets or liabilities that are presented at the net amount after offsetting
Unit: RMB
Closing amount of Closing amount of Opening amount of Opening amount of
deferred tax assets and deferred tax assets or deferred tax assets and deferred tax assets or
Item liabilities that are offset liabilities after offsetting liabilities that are offset liabilities after offsetting
Deferred tax assets - 11,274,320.82 - 11,274,320.82
Deferred tax liabilities - 1,805,000.00 - 1,907,500.00
(4) Details of unrecognized deferred tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary differences 103,403,311.37 109,232,919.92
Deductible losses 175,298,730.79 175,298,730.79
Total 278,702,042.16 284,531,650.70
Note: Deferred tax assets are not recognized for the above-mentioned deductible temporary
differences and deductible losses due to uncertainty whether sufficient taxable profits will
be available in the future.
(5) Deductible losses for unrecognized deferred tax assets will be expired in the following years
Unit: RMB
Year Closing balance Opening balance Note
2015 - -
2016 16,885,955.11 16,885,955.11
2017 30,345,268.82 30,345,268.82
2018 75,300,266.59 75,300,266.59
2019 49,621,628.48 49,621,628.48
2020 3,145,611.79 3,145,611.79
Total 175,298,730.79 175,298,730.79
- 54 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
19. Other non-current assets
Unit: RMB
Item Closing balance Opening balance
Land Use Right (Note) 132,334,704.86 132,334,704.86
Prepayments on construction 9,727,130.84 -
Total 142,061,835.70 132,334,704.86
Note: On March and October 2006, November 2007 and September 2014, the Company entered
into Cooperation Framework Agreement on Usage of Coastline and Land for 2#- 5# Berth
at Machong Port in Dongguan and its supplementary agreements with Dongguan Humen
Port Administration Commission. The Company purchased use rights of coastline and land
with a total area of 800,000 square meters, including waters with depth of 700 meters from
the front of terminal, and coastline from berth 2# to berth 5# with a total length of 1,200
meters at Dongguan Machong Port at a consideration of RMB260,000,000. As the Group
has not obtained the use right certificates for the above land, the relevant prepayments were
therefore recognized as other non-current assets.
20. Short-term borrowings
Unit:RMB
Item Closing balance Opening balance
Credit loan - 141,610,178.37
21. Accounts payable
(1) Details of accounts payable
Unit: RMB
Item Closing balance Opening balance
Service 51,292,905.18 51,543,398.18
Material purchase 24,047,284.92 17,995,475.96
Rental 23,214,497.23 14,693,668.47
Construction 5,445,725.82 7,029,001.36
Equipment 297,502.66 192,294.70
Total 104,297,915.81 91,453,838.66
(2) There is no significant accounts payable agaed more than one year at the end of the year.
- 55 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
22. Receipts in advance
Unit: RMB
Item Closing balance Opening balance
Service fee receipt in advance 76,107,732.84 40,504,130.84
23. Employee benefits payable
(1) Employee benefits payable
Unit:RMB
Increase for the Decrease for the
Item Opening balance current period current period Closing balance
I. Short-term benefits 77,084,662.63 152,940,280.60 170,524,378.17 59,500,565.06
II. Post-employment benefits - defined
contribution plans
- 16,824,818.52 16,824,818.52 -
III. Termination benefits - 2,479,242.00 2,479,242.00 -
Total 77,084,662.63 172,244,341.12 189,828,438.69 59,500,565.06
(2) Short-term benefits
Unit:RMB
Increase for the Decrease for the
Item Opening balance current period current period Closing balance
I. Wages and salaries, bonuses, allowances
64,209,436.41 130,219,071.25 147,983,499.99 46,445,007.67
and subsidies
II. Staff welfare - 2,983,391.11 2,983,391.11 -
III. Social insurance charges 535.54 4,175,860.19 4,175,860.19 535.54
Including:
- 3,567,689.17 3,567,689.17 -
Medical insurance
Work injury insurance 535.54 194,577.30 194,577.30 535.54
Maternity insurance - 413,593.72 413,593.72 -
IV. Housing funds - 9,439,595.82 9,439,595.82 -
V. Labor union and employee education funds 12,874,690.68 3,404,369.55 3,224,038.38 13,055,021.85
VI. Others - 2,717,992.68 2,717,992.68 -
Total 77,084,662.63 152,940,280.60 170,524,378.17 59,500,565.06
Note: There are no amounts in arrears under the employee benefits payable.
(3) Post-employement benefits - defined contribution plans
Unit: RMB
Increase for the Decrease for the
Item Opening balance current period current period Closing balance
I. Basic pension (Note 1) - 11,945,008.55 11,945,008.55 -
II. Unemployment insurance (Note 1) - 208,267.51 208,267.51 -
III. Enterprise annuity plan (Note 2) - 4,671,542.46 4,671,542.46 -
Total - 16,824,818.52 16,824,818.52 -
- 56 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
23. Employee benefits payable - continued
(3) Post-employement benefits - defined contribution plans - continued
Note 1: The Group participates in the social security contributions and the unemployment
insurance plan established by government institutions as required. According to such
plans, the Group contributes 14% ( 13% for staffs without Shenzhen householder
register ) , 2% (1% for staffs in Dongguan City) respectively to such plans based on the
employee's basic salary each month.
During the year, the Group is obliged to contribute RMB 11,945,008.55 and RMB
208,267.51 respectively to the social security contributions and the unemployment
insurance plan (2015: RMB 11,277,331.36 and RMB 338,221.02). As at 30 Jun. 2016,
the Group have no outstanding contributions to be paid to the social security
contributions and the unemployment insurance plan.
Note 2: On 3 June 2008, the Group participated in a group defined enterprise annuity plan of
Nanshan Group approved by Shenzhen municipal government. This supplementary
pension contributions were paid into a managed account through Nanshan Group.
24. Taxes payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Enterprise income tax 16,077,966.04 49,661,006.76 40,831,185.27 24,907,787.53
Withholding tax (Note) 26,779,214.63 - - 26,779,214.63
Business tax 187,545.59 1,225,080.84 1,412,626.43 -
Value-added-tax 1,957,048.39 14,825,265.79 14,934,235.69 1,848,078.49
Others 3,132,828.09 15,723,042.46 12,929,948.95 5,925,921.60
Total 48,134,602.74 81,434,395.85 70,107,996.34 59,461,002.25
Note: The amount represents the withholding tax provided by the Group at the rate of 5% or 10%
when paying out dividends to foreign shareholders and Chiwan Wharf Holdings (H.K.)
Limited located in Hong Kong.
25. Interest payable
Unit: RMB
Item Closing balance Opening balance
Interest on corperate debentures 19,715,068.47 18,440,692.42
Interest on short-term borrowings - 79,146.51
Total 19,715,068.47 18,519,838.93
- 57 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
26. Dividends payable
Unit: RMB
Item Closing balance Opening balance
Ordinary share dividends 353,068,137.47 88,715,008.17
Including: Payable to International Enterprise Co., Ltd. 50,466,621.41 50,466,621.41
Payable to Hidoney Developments Co., Ltd. 38,248,386.76 38,248,386.76
Nanshan Group 85,971,697.47 -
Shenzhen Malai Warehouse Co., Ltd. 66,088,282.53 -
Public A Shares 38,536,023.00 -
Public B Shares 73,757,126.30 -
27. Other payables
(1) Other payables presented by the nature of amount
Unit: RMB
Item Closing balance Opening balance
Amount payable for construction and quality warranty 13,287,619.63 40,593,200.80
Temporary receipts 8,342,777.66 4,584,940.63
Security expense payable 5,416,043.56 13,871,671.22
Deposits received 4,102,463.02 5,903,230.85
Others 19,364,509.42 11,760,880.32
Total 50,513,413.29 76,713,923.82
(2) Significant other payables aged more than one year
There is no significant other payables agaed more than one year at the end of the year.
28. Non-current liabilities due within one year
Unit: RMB
Item Closing balance Opening balance
Deferred income due within one year 5,405,618.17 5,306,254.17
29.Other current liabilities
(1) Short-term bonds payable
Unit: RMB
Item Closing balance Opening balance
Short-term bonds payable - 500,000,000.00
- 58 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
29.Other current liabilities - continued
(2) Changes in short-term bonds payable:
Unit: RMB
Interest
Amount issued accrued at par Discount or
Term of in the current during the premium Repayment in
Name of bond Face value Date of issue the bond Amount of issue Opening balance period year amortization the current year Closing balance
15 Chiwan port CP001(note1) 300,000,000.00 10/04/2015 366days 300,000,000.00 300,000,000.00 - - 300,000,000.00 -
15 Chiwan port SCP003(note2) 200,000,000.00 08/09/.2015 268days 200,000,000.00 200,000,000.00 - - 200,000,000.00 -
Total 500,000,000.00 500,000,000.00 - - 500,000,000.00 -
Note1: According to Notice of Registration Acceptance (Zhong Shi Xie Zhu [2013] No. CP171)
issued by China's Interbank Market Dealers Association received by the Company on 7
May 2013, the Interbank Market Dealers Association approved the Company's short-term
financing registration of RMB 1.6 billion with valid period of two years with effect from
the acceptance of Notice of Registration Acceptance. On 10 April, 2015, the Company
issued the second short-term financing bill with an amount of RMB 300 million at the
interest rate of 4.90%. The principle should be repaid with interest when the bill is due
within 366 days, which has been repaid in this period.
Note2: According to Notice of Registration Acceptance (Zhong Shi Xie Zhu [2013] No. CP171)
issued by China's Interbank Market Dealers Association received by the Company on 14
May 30 Jun. 2016, the Interbank Market Dealers Association approved the Company's
super short-term financing registration of RMB 1.6 billion with valid period of two years
with effect from the acceptance of Notice of Registration Acceptance. On 8 September
2015, the Company issued the third phase of super short-term financing bills with an
amount of RMB 200 million at the interest rate of 3.44%. The principle should be repaid
with interest accrued when the bills are due in 268 days, which has been repaid in this
period.
30. Bonds payable
(1) Bonds payable
Unit: RMB
Item Closing balance Opening balance
Corporate bonds 498,163,287.70 497,764,383.59
(2) Changes of bonds payable:
Unit: RMB
Amount Discount or
Term of the issued in the Interest accrued at premium Repayment in the
Name of bonds Face value Date of issue bond Amount of issue Opening balance current year par during the year amortization current year closing balance
13 ChiWan 01 500,000,000.00 18/10/2013 Fiveyears 500,000,000.00 497,764,383.59 - 13,961,643.82 - - 498,163,287.70
Total 500,000,000.00 497,764,383.59 - 13,961,643.82 - - 498,163,287.70
- 59 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
30. Bonds payable - continued
(2) Changes of bonds payable: - continued
Note: On 25 November 2011, the Company received the Approval from CSRC (filed as Zhen
Jian Xu Ke [2011] No.1889) to issue corporate bonds with face value no more than 1
billion.
On 18 October 2013, the Company's actual issue amounted to RMB500,000,000 with the
term of five years. The bond interests should be calculated on simple interest basis at a
nominal fixed interest rate of 5.60% on a yearly basis and repaid once annually.
According to the bond prospectus, the Company should make an announcement on
whether to exercise the redemption option at the 30th trading date before the interest
payment date in the third interest-bearing year. If the decision of exercising the
redemption option is made, the bond would be regarded as to be matured in the third year.
If the decision of not exercising the redemption of option is made, the Company should
make an announcement on whether to raise the interest rate and the extent of variation,
which ranges from zero to 100 base points. If the company chooses to exercise the option
of raising the stated interest rate, the stated interest rate of the portion of non-put-back
bond due in two years after the remaining period equals to the stated interest rate due in
three years prior to the remaining period plus the increased base point, and the stated
interest rate of the bond due in two years after the remaining period would be fixed. If the
company chooses not to exercise the option of raising the stated interest rate, the original
stated interest rate remains the same for the portion of non-put-back bond due in two years
after the remaining period.
Investors have the option to sell bonds back to the Company at the interest payment date
in the third interest-bearing year at the par value wholly or in partially, after the Company
makes the announcement on whether to raise the stated interest rate and the extent of
variation.
If the Company abandons the redemption option and the bondholders abandon the put
back option wholly or partially, the rest of the principal would be paid back in advance.
Namely, 30% proportion of the principal should be paid back at the end of the fourth year
since the bond issued and the rest should be paid back at the end of the fifth year.
31. Long-term payables
Item Closing balance Opening balance
Sea area use rights 1,027,725.60 -
- 60 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
32. Special payables
Unit: RMB
Item Opening balance Increase Decrease Closing Balance Reason
Refunds of Harbor Construction Fee 34,990,596.50 - - 34,990,596.50 Note
Note: The item is refunds of harbor construction fee from Shenzhen Traffic Bureau. According
to Measures of Harbor Construction Fee Management released by Ministry of Finance,
the funds should be managed in separate account and can be only used on fundamental
facilities' construction of marine transportation.
33. Deferred income
Unit: RMB
Closing
Item Opening balance Increase Decrease Balance Reason
Deferred income 67,063,782.62 938,560.76 2,935,174.78 65,067,168.60
Including: Berth priority right 38,067,281.42 938,560.76 2,535,977.62 36,469,864.56 Note 1
Government grants related
28,996,501.20 - 399,197.16 28,597,304.04 Note 2
to assets
Total 67,063,782.62 938,560.76 2,935,174.78 65,067,168.60
Less: Non-current liabilities due within - -
5,306,254.17 5,405,618.17
one year
Including: Berth priority right 4,707,860.00 - - 4,807,620.00
Government grants related - -
598,394.17 597,998.17
to assets
Deferred income 61,757,528.45 - - 59,661,550.43
Note 1: This item represents berth priority right with total amounts to USD14,000,000 that agreed
in the contract signed in 2003. The Group should satisfy the berthing requirement of
contracted customers in priority during the contract period. According to the contract, the
berth priority right should be amortized over twenty years on the straight-line basis.
Note 2: The item represents the government grants received by the Group which is based on the
Announcement Released by National Development and Reform Commission about 2010
Investment Plans within Budget of Grains and Modern Logistics Program (NDRC[2010]
No.1263), the Announcement Released by Guangdong Provincial Department of Finance
about 2012 Provincial Special Funds to Guide the Development of Modern Service
Project (Guangdong Production Letter [2012] No. 621) and Transportation of energy
saving special funds Interim Measures (Finance Building [2011] No. 374),Nanshan
District, Shenzhen, energy saving projects funded sub contract, Announcement Released
by Reform and Development Commission of Guangdong Province and the Grain Bureau
of Guangdong Province about 2015 Investment Plans within Budget of Grains and
Modern Logistics Program (GDRC[2015] No.521), Measures Released by Dongguan
Government about Grants Management to Special Fund Program for the Development of
National and Provincial Industries (DGM[2013]No.162), Interim Measures Released by
Shenzhen Government about the Management to Special Fund used in Recycling
Economy and Energy Savings, and the Reply of Ministry of Transport to Implementation
Program of Building 19 Regional Projects such as the Construction of a Green Recycling
Low-carbon Transportation City by Beijing Government (Transportation Law
Letter[2014]No.499) . The government grants shall be amortized on the straight-line basis
over the useful life of the related assets.
- 61 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
33. Deferred income - continued
Programs related with government grants:
Unit: RMB
The amount included Related to
New subsidy of in operating income Other assets/Related to
Liability Program Opening balance the year of the year changes Closing Balance income
Special funds for modern
23,360,000.54 - 83,478.24 - 23,276,522.30 Related to assets
logistics project
Special funds for the
development of modern 1,409,557.00 - 26,022.60 - 1,383,534.40 Related to assets
service guide
Special funds for energy-
saving and emission 4,136,666.66 - 280,000.02 - 3,856,666.64 Related to assets
reduction of transportation
Green carbon harbor thematic
projects subsidy granted by 90,277.00 - 9,696.30 - 80,580.70 Related to assets
central government
Total 28,996,501.20 - 399,197.16 - 28,597,304.04
- 62 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
34. Share capital
Unit: RMB
Changes for the period
New issue of Capitalisation of
Opening balance share Bonus issue surplus reserve Others Subtotal Closing balance
2016:
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned legal person
- - - - - - -
shares
3. Other domestic shares 431,094.00 - - - (125,994.00) (125,994.00) 305,100.00
4. Other foreign shares - - - - - -
Total restricted tradable shares 431,094.00 - - - (125,994.00) (125,994.00) 305,100.00
II. Non-restricted tradable shares
1. Ordinary shares denominated
464,866,999.00 - - - (949.00) (949.00) 464,866,050.00
in RMB
2. Foreign capital shares listed
179,465,637.00 - - - 126,943.00 126,943.00 179,592,580.00
domestically
3. Foreign capital shares listed
- - - - - -
overseas
4. Others - - - - - -
Total non-restricted tradable
644,332,636.00 - - - 125,994.00 125,994.00 644,458,630.00
shares
III. Total shares 644,763,730.00 - - - - - 644,763,730.00
2015:
I. Restricted tradable shares
1. State-owned shares - - - - - - -
2. State-owned legal person
- - - - - - -
shares
3. Other domestic shares 367,401.00 - - - 63,693.00 63,693.00 431,094.00
4. Other foreign shares - - - - - - -
Total restricted tradable shares 367,401.00 - - - 63,693.00 63,693.00 431,094.00
II. Non-restricted tradable shares
1. Ordinary shares denominated
464,867,324.00 - - - (325.00) (325.00) 464,866,999.00
in RMB
2. Foreign capital shares listed
179,529,005.00 - - - (63,368.00) (63,368.00) 179,465,637.00
domestically
3. Foreign capital shares listed
- - - - - - -
overseas
4. Others - - - - - - -
Total non-restricted tradable
644,396,329.00 - - - (63,693.00) (63,693.00) 644,332,636.00
shares
III. Total shares 644,763,730.00 - - - - - 644,763,730.00
- 63 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
35. Capital reserve
Unit: RMB
Items Opening balance Increase Decrease Closing balance
2016:
Capital premium 163,560,083.00 - - 163,560,083.00
Including: Capital contributed by investors 163,560,083.00 - - 163,560,083.00
Exercised conversion option of convertible corporate
- - - -
bonds
Debt converted into capital - - - -
Differences arising from business combination involving
- - - -
enterprises under common control
Equity acquisition from minority shareholders
- - - -
of subsidiaries
Capital reserve converted into capital - - - -
Other capital reserve 2,004,656.15 1,915,642.10(Note) - 3,920,298.25
Including: Equity split from convertible corporate bonds - - - -
Fair value of equity-settled share-based equity instrument - - - -
Surplus of compensation granted by government for
- - - -
relocation in the public interests
Transfer from capital reserve under the
(2,781,133.00) - - (2,781,133.00)
previous accounting system
Others 4,785,789.15 1,915,642.10 - 6,701,431.25
Total 165,564,739.15 1,915,642.10 - 167,480,381.25
2015:
Capital premium 163,560,083.00 - - 163,560,083.00
Including: Capital contributed by investors 163,560,083.00 - - 163,560,083.00
Excised conversion option of convertible corporate bonds - - - -
Debt converted into capital - - - -
Differences arising from business combination involving
- - - -
enterprises under common control
Equity acquisition from minority shareholders of
- - - -
subsidiaries
Capital reserve converted into capital - - - -
Other capital reserve (861,527.35) 2,866,183.50 - 2,004,656.15
Including: Equity split from convertible corporate bonds - - - -
Fair value of equity-settled share-based equity instrument - - - -
Surplus of compensation granted by government for
- - - -
relocation in the public interests
Transfer from capital reserve under the previous
(2,781,133.00) - - (2,781,133.00)
accounting system
Others 1,919,605.65 2,866,183.50 - 4,785,789.15
Total 162,698,555.65 2,866,183.50 - 165,564,739.15
Note：This is the capital reserve recoginized on pro rata basis of ownership interest held by the
Group due to the changes of other equity of the associate of the Group, China Merchant
Bonded Logistics.
- 64 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
36. Other comprehensive income
Unit: RMB
Amount incurred in current year
Less: Amount
included in other Post-tax
comprehensive amount Post-tax
Amount before income in the prior attributable to amount
income tax periods that is shareholders attributable to
Opening incurred in transferred to profit Less: income of the minority Closing
Item balance current year or loss for the period tax expenses Company holders balance
2016
I. Other comprehensive income that will not be
- - - - - - -
reclassified subsequently to profit or loss
Including: Change as a result of remeasurement of
- - - - - - -
the net defined benefit plan liability or asset
Share of other comprehensive income of the
investee under the equity method that will not be - - - - - - -
reclassified to profit or loss
II. Other comprehensive income that will be
(7,889,646.43) (410,000.00) - (102,500.00) (307,500.00) - (8,197,146.43)
reclassified subsequently to profit or loss
Including: Share of other comprehensive income
of the investee under the equity method that will 100,000.00 - - - - - 100,000.00
be reclassified to profit or loss
Gains or losses on changes in fair value of
5,722,500.00 (410,000.00) (102,500.00) (307,500.00) - 5,415,000.00
available-for-sale financial assets
Gains or losses on reclassification of held-to-
maturity investments to available-for-sale - - - - -
- -
financial assets
Effective portion of gains or losses on
- - - - -
cash flow hedges - -
Translation differences of financial statements
(13,712,146.43) - - - - - (13,712,146.43)
denominated in foreign currencies
Total (7,889,646.43) (410,000.00) - (102,500.00) (307,500.00) - (8,197,146.43)
2015
I. Other comprehensive income that will not be
- - - - - - -
reclassified subsequently to profit or loss
Including: Change as a result of remeasurement of
- - - - - - -
the net defined benefit plan liability or asset
Share of other comprehensive income of the
investee under the equity method that will not - - - - - - -
be reclassified to profit or loss
II. Other comprehensive income that will be
(8,977,146.43) 1,450,000.00 - 362,500.00 1,087,500.00 - (7,889,646.43)
reclassified subsequently to profit or loss
Including: Share of other comprehensive income
of the investee under the equity method that will 100,000.00 - - - - - 100,000.00
be reclassified to profit or loss
Gains or losses on changes in fair value of
4,635,000.00 1,450,000.00 - 362,500.00 1,087,500.00 - 5,722,500.00
available-for-sale financial assets
Gains or losses on reclassification of held-to-
maturity investments to available-for-sale - - - - - - -
financial assets
Effective portion of gains or losses on
- - - - - - -
cash flow hedges
Translation differences of financial statements
(13,712,146.43) - - - - - (13,712,146.43)
denominated in foreign currencies
Total (8,977,146.43) 1,450,000.00 - 362,500.00 1,087,500.00 - (7,889,646.43)
37. Special reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
2016:
Production safety fee 3,719,755.58 7,938,679.84 6,126,200.97 5,532,234.45
2015:
Production safety fee 2,219,777.52 15,469,088.96 13,969,110.90 3,719,755.58
- 65 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
38. Surplus reserve
Unit: RMB
Item Opening balance Increase Decrease Closing balance
2016:
Statutory surplus reserve 520,074,434.56 - - 520,074,434.56
2015:
Statutory surplus reserve 520,074,434.56 - - 520,074,434.56
Note: In accordance with the Company Law of the PRC and the Company's Articles of
Association, the Company should appropriate 10% of net profit for the year to the statutory
surplus reserve, and the Company can cease appropriation when the statutory surplus
reserve accumulates to more than 50% of the registered capital. The statutory surplus
reserve can be used to make up for the loss or increase the paid-in capital after approval.
39. Unappropriated profit
Unit: RMB
Proportion of
appropriation or
Item Amount allocation
2016:
Before adjustment: Unappropriated profit at the end of prior year 3,113,367,524.19
Adjustment: Total unappropriated profit at the beginning of year -
After adjustment: Unappropriated profit at the beginning of year 3,113,367,524.19
Add: Net profit attributable to shareholders
266,535,506.97
of the Company for the year
Less: Appropriation to statutory surplus reserve - Note1
Appropriation to discretionary surplus reserve -
Appropriation to general risk reserve -
Ordinary shares' dividends payable 264,353,129.30 Note2
Ordinary shares' dividends converted into share capital -
Unappropriated profit at the end of the year 3,115,549,901.86
2015:
Before adjustment: Unappropriated profit at the end of prior year 2,794,519,480.29
Adjustment: Total unappropriated profit at the beginning of year -
After adjustment: Unappropriated profit at the beginning of year 2,794,519,480.29
Add: Net profit attributable to shareholders
527,751,492.42
of the parent company for the year
Less: Appropriation to statutory surplus reserve - Note1
Appropriation to discretionary surplus reserve -
Appropriation to general risk reserve -
Ordinary shares' dividends payable 208,903,448.52
Ordinary shares' dividends converted into share capital -
Unappropriated profit at the end of the year 3,113,367,524.19
Note 1: Appropriation to statutory surplus reserve
According to the Articles of Association, the Company is required to transfer 10% of its
net profit to the statutory surplus reserve. The Company can cease appropriation when the
statutory surplus reserve accumulated to more than 50% of the register capital.
- 66 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
39. Unappropriated profit - continued
Note 2: Cash dividends approved by shareholders' meeting during the year
Pursuant to the resolution of shareholders’ meeting on 6 June 2016, on the basis of
644,763,730 issued shares for the year ended 31 December 2015, dividends of RMB3.24
for every 10 shares were distributed to all shareholders, which amounted to RMB
264,353,129.30.
Note 3: Appropriation to surplus reserve made by subsidiaries
As of 30 Jun. 2016, the balance of the Group's unappropriated profit included
appropriation to surplus reserve made by subsidiaries amounting to RMB575,268,020.18
(31 December 2015: RMB575,268,020.18).
40. Operating income and operating costs
Unit: RMB
Jan.-Jun. 2016 Jan.-Jun. 2015
Item Income Cost Income Cost
Principal operating 892,403,001.57 490,985,319.24 862,834,671.10 461,451,632.41
Other operating 12,406,650.67 1,173,205.35 17,953,337.68 1,975,879.18
Total 904,809,652.24 492,158,524.59 880,788,008.78 463,427,511.59
41. Business taxes and levies
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Business tax 1,499,967.15 2,039,575.42
City construction and maintenance tax 861,254.66 835,195.38
Education surcharges 718,325.63 643,055.12
Others 88,394.97 399,670.96
Total 3,167,942.41 3,917,496.88
42. Administrative expenses
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Employee benefits 60,212,414.71 60,392,774.99
Taxes 2,893,986.34 3,578,849.23
Depreciation expenses 1,436,738.38 1,499,541.41
Amortization of intangible assets 426,838.44 472,849.08
Others 16,977,890.84 18,257,857.21
Total 81,947,868.71 84,201,871.92
- 67 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
43. Financial expenses
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Interest expense 21,509,775.01 36,000,388.69
Less: Capitalized interest expenses - 112,363.36
Less: Interest income 3,395,655.74 3,075,844.58
Exchange differences (4,428,671.94) (2,121,677.17)
Less: Capitalized exchange differences - -
Others 568,167.02 3,480,296.71
Total 14,253,614.35 34,170,800.29
44. Impairment losses of assets
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
I. Bad debt losses 288,044.16 153,277.43
II. Write-down of inventories - -
III. Impairment on available-for-sale financial assets - -
IV. Impairment on held-to-maturity investments - -
V. Impairment on long-term equity investments - -
VI. Impairment on investment properties - -
VII. Impairment on fixed assets - -
VIII. Impairment on construction materials - -
IX. Impairment on construction in progress - -
X. Impairment on bearer biological assets - -
XI. Impairment on oil and gas assets - -
XII. Impairment on intangible assets - -
XIII. Impairment on goodwill - -
XIV. Others - -
Total 288,044.16 153,277.43
45. Investment income
(1) Details of investment income
Unit: RMB
Jan.-Jun. 2016 Jan.-Jun. 2015
Long-term equity investments income under equity method 63,008,068.56 48,454,997.32
Investment income on available-for-sale financial assets 6,292,187.85 380,000.00
Total 69,300,256.41 48,834,997.32
(2) Details of long-term equity investments income under equity method
Unit: RMB
Reasons for increases or
decreases in the current
Investee Jan.-Jun. 2016 Jan.-Jun. 2015 compared to the prior period
MPIL 16,389,086.06 17,488,986.85 Net profit of investee fluctuates.
China Overseas Harbor Affairs (Laizhou) Co.,Ltd 37,197,754.16 23,873,557.00 Net profit of investee fluctuates.
CMBL 7,747,007.96 3,864,439.94 Net profit of investee fluctuates.
China Merchants Holdings (international )
Information Technology Co.,Ltd
1,674,220.38 440,040.00 Net profit of investee fluctuates
The stake in the investee has
China Development Finance Co., Ltd - 2,787,973.53
been sold
Total 63,008,068.56 48,454,997.32
- 68 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
46. Non-operating income
(1) Non-operating income
Unit: RMB
Amount recognized
as non-recurring
gain and loss in the
Item Jan.-Jun. 2016 Jan.-Jun. 2015 current period
Government grants 419,197.16 338,012.74 419,197.16
Gains on disposal of non-current assets 321,539.16 166,790.00 321,539.16
Including: Gains on disposal of fixed assets 140,891.16 166,790.00 140,891.16
Insurance compensation income 1,421,480.12 - 1,421,480.12
Others 476,997.37 507,828.03 476,997.37
Total 2,639,213.81 1,012,630.77 2,639,213.81
(2) Government grants
Unit: RMB
Related to
assets/Related to
Item Jan.-Jun. 2016 Jan.-Jun. 2015 income
Local government subsidy for new-energy vehicles 20,000.00 - Related to income
Special funds for modern logistics project 83,478.24 83,478.24 Related to assets
Special funds for guiding the development of the
17,094.00 17,094.00 Related to assets
modern service sector
Special funds for energy saving and emission
280,000.02 230,000.00 Related to assets
reduction in transportation
2015 annual special fund for supporting national
8,928.60 7,440.50 Related to assets
and provincial commerce circulation projects
Central government subsidy for low-carbon green
9,696.30 - Related to assets
port project
Total 419,197.16 338,012.74
47. Non-operating expenses
Unit: RMB
Amount recognized as
non-recurring gain and
loss in the current
Item Jan.-Jun. 2016 Jan.-Jun. 2015 period
Total losses on disposal of non-current assets 497,708.60 54,508.30 497,708.60
Including: Losses on disposal of fixed assets 393,008.61 54,508.30 393,008.61
Donations contributed - 10,000.00 -
Amercement outlay 862.00 19,000.00 862.00
Others 2,895.03 12,076.40 2,895.03
Total 501,465.63 95,584.70 501,465.63
- 69 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
48. Income tax expenses
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Current tax expense 49,661,006.76 18,629,057.42
Deferred income tax - 15,829,473.74
Total 49,661,006.76 34,458,531.16
Reconciliation of income tax expenses to the accounting profit is as follows:
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Accounting profit 384,431,662.61 344,669,094.06
Income tax expenses calculated at 25% (the prior year: 25 %) 96,107,915.65 86,167,273.52
Effect of expenses that are not deductible for tax purposes 1,056,319.90 1,180,562.47
Effect of tax-free income (17,325,064.10) (12,208,749.33)
Effect of unrecognized deductible losses and deductible temporary
(31,720.53) 11,244,968.18
differences for tax purposes
Effect of different tax rates of subsidiaries operating in other jurisdictions (153,427.70) (46,005.42)
Effect of tax preference policy (31,303,251.96) (51,551,089.56)
Withholding income tax (Note) 1,844,132.60 -
Effect of previous unrecognized deductible temporary differences
(533,897.10) (328,428.70)
of deferred income tax
Income tax expenses 49,661,006.76 34,458,531.16
Note: Withholding income tax was accrued at the rate of 5% or 10% for dividend payable to
Chiwan Wharf Holdings (H.K.) Limited, declared by those PRC subsidiaries of which
Chiwan Wharf Holdings (H.K.) Limited is a shareholder.
49. Other comprehensive income
Please refer to Note (V) 36.
50. Borrowing cost
Unit: RMB
Jan.-Jun. 2016 Jan.-Jun. 2015
Amount of borrowing Amount of borrowing
costs capitalized Capitalization costs capitalized Capitalization
Item during the year rate during the year rate
Construction in progress - - 112,363.36 5.35%
Sub-total of borrowing costs capitalized
during the year
- - 112,363.36 -
Borrowing costs recognized in profit
or loss during the year
21,509,775.01 - 35,888,025.33 -
Total of borrowing costs during the year 21,509,775.01 - 36,000,388.69 -
- 70 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
51. Notes to items in the cash flow statement
(1) Other cash receipts relating to operating activities
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Government grants 20,000.00 500,000.00
Tonggu sea-route expenses - 9,908,911.11
Interest income 3,480,587.17 3,202,124.92
Insurance indemnity 589,702.77 -
Refunds of harbor construction fee 187,255.90 10,733.06
Others 1,500,900.83 2,424,815.84
Total 5,778,446.67 16,046,584.93
(2) Other cash payments relating to operating activities
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Port expenses 3,110,545.07 2,867,426.20
Office expenses & utilities 3,452,774.73 2,576,154.17
Consulting & auditing 958,941.16 910,186.68
Entertainment 1,286,439.91 1,697,115.27
Verhicles 1,384,524.03 979,883.44
Property insurance 961,760.89 1,045,455.63
Travel & accommodation 990,291.95 721,228.46
River channel occupation fee 14,469,500.00 -
Others 19,521,179.59 6,885,660.92
Total 46,135,957.33 17,683,110.77
(3) Other cash payments relating to financing activities
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Debt issue costs 25,986.89 128,296.31
- 71 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
52. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
Supplementary Jan.-Jun. 2016 Jan.-Jun. 2015
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 334,770,655.85 310,210,562.90
Add: Provision for impairment losses of assets 288,044.16 153,277.43
Depreciation of fixed assets 96,908,007.22 100,491,851.39
Depreciation and amortization of investment property 460,990.32 590,075.99
Amortization of intangible assets 19,233,130.89 19,613,811.22
Amortization of long-term prepaid expenses 1,045,225.04 1,377,499.91
Losses on disposal of fixed assets , intangible assets and other
176,169.44 54,508.30
long-term assets
Financial expenses 17,480,007.18 36,017,307.05
Losses (gains) arising from investments (69,300,256.41) (48,834,997.32)
Decrease(Increase) in deferred tax assets - 15,829,473.74
Decrease(Increase) in inventories (581,772.67) (268,441.11)
Decrease(Increase) in operating receivables (46,999,409.75) (10,684,097.89)
Increase(Decrease) in operating payables 15,176,452.53 (59,028,316.90)
Net cash flows from operating activities 368,657,243.80 365,522,514.71
2. Significant investing and financing activities that do not involve
cash receipts and payments:
Conversion of debt into capital - -
Convertible bonds due within one year - -
Fixed assets acquired under finance leases - -
3. Net changes in cash and cash equivalents:
Closing balance of cash 405,872,026.99 308,172,676.22
Less: Opening balance of cash 683,138,123.66 468,635,486.47
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase(Decrease) in cash and cash equivalents (277,266,096.67) (160,462,810.25)
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 405,872,026.99 683,138,123.66
Including: Cash on hand 20,219.27 28,647.92
Bank deposits 404,985,461.08 682,656,283.17
Other monetary funds 866,346.64 453,192.57
II. Cash equivalents - -
III. Closing balance of cash and cash equivalents 405,872,026.99 683,138,123.66
53. Asset with restricted ownership or use right
The Group has no assets with restricted ownership or use right.
- 72 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
54. Foreign currency monetary items
Unit: RMB
Closing balance of original Exchange
Item currency rate Closing amount in RMB
Cash and bank balances 45,977,970.11 133,940,167.97
Including: HKD 29,593,862.62 0.8547 25,293,874.38
USD 16,384,107.49 6.6312 108,646,293.59
Accounts Receivable 9,914,373.15 40,006,394.79
Including: HKD 4,455,603.99 0.8547 3,808,204.73
USD 5,458,769.16 6.6312 36,198,190.06
Other Receivables 364,287.45 311,356.48
Including: HKD 364,287.45 0.8547 311,356.48
Accounts Payable 2,041,743.79 1,745,078.42
Including: HKD 2,041,743.79 0.8547 1,745,078.42
Other Payable (136,728.99) (396,446.31)
Including: HKD (88,328.74) 0.8547 (75,494.57)
USD (48,400.25) 6.6312 (320,951.74)
(VI) CHANGES IN CONSOLIDATION SCOPE
There is no change in consolidation scope during the year.
- 73 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VII) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group
Unit: RMB
Registered Balance of other items Proportion of ownership Interest (%)
Capital(in ten Actual capital substantively constituting Indirect Proportion of
Principal place of Place of Nature of thousand Yuan unless contribution at the net investments in the Direct ownership ownership voting power Consolidated
Full name of the subsidiary business incorporation business otherwise stated) end of the period subsidiary interest interest (%) or not Approach of acquiring
Shenzhen Chiwan International Freight Logistics support Established through
Shenzhen, PRC Shenzhen, PRC 550.00 5,500,000.00 - 100.00 - 100.00 Y
Agency Company Limited services investment
Established through
Chiwan Wharf Holdings (H.K.) Limited Hong Kong SAR, PRC Hong Kong SAR, PRC Investment HKD 1,000,000.00 1,070,000.00 11,004,285.00 100.00 - 100.00 Y
investment
Dongguan Chiwan Wharf Logistics support Established through
Dongguan, PRC Dongguan, PRC 45,000.00 382,500,000.00 - 85.00 - 85.00 Y
Company Limited services investment
Dongguan Chiwan Terminal Logistics support Established through
Dongguan, PRC Dongguan, PRC 40,000.00 400,000,000.00 - 100.00 - 100.00 Y
Company Limited services investment
Established through
Hinwin Development Company Limited Hong Kong SAR, PRC Hong Kong SAR, PRC Investment HKD 10,000.00 6,278,500.00 94,014,181.00 100.00 - 100.00 Y
investment
Combination involving
Shenzhen Chiwan Harbor Container Logistics support
Shenzhen, PRC Shenzhen, PRC 28,820.00 250,920,000.00 - 100.00 - 100.00 Y enterprises under
Co., Ltd services
common control
Combination involving
Shenzhen Chiwan Transportation Logistics support
Shenzhen, PRC Shenzhen, PRC 1,500.00 7,000,000.00 - 100.00 - 100.00 Y enterprises under
Co., Ltd services
common control
Combination involving
Logistics support
Chiwan Container Terminal Co., Ltd Shenzhen, PRC Shenzhen, PRC USD 95,300,000.00 485,990,004.00 - 55.00 - 55.00 Y enterprises under
services
common control
Combination involving
Shenzhen Chiwan Shipping Logistics support
Shenzhen, PRC Shenzhen, PRC 2,400.00 24,000,000.00 - 100.00 - 100.00 Y enterprises under
Transportation Co., Ltd. services
common control
Combination involving
Logistics support
Chiwan Shipping (Hong Kong) Ltd. Hong Kong SAR, PRC Hong Kong SAR, PRC HKD 800,000.00 856,000.00 - 100.00 - 100.00 Y enterprises under
services
common control
- 74 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VII) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries- continued
(2) Material non-wholly-owned subsidiaries
Unit: RMB
Proportion of ownership Profit or loss attributable Payments for dividends
interest held by the to minority shareholders to minority shareholders Closing balance of
Name of the subsidiary minority shareholders at the end of the period in the current period minority interest
2016
Dongguan Chiwan Wharf Company Limited 15% 4,948,825.19 - 111,766,530.34
Chiwan Container Terminal Co., Ltd 45% 63,286,323.69 - 746,073,600.47
Total 68,235,148.88 - 857,840,130.81
2015
Dongguan Chiwan Wharf Company Limited 15% 10,596,767.69 - 106,741,678.70
Chiwan Container Terminal Co., Ltd 45% 114,369,398.50 215,249,531.83 682,968,214.37
Total 124,966,166.19 215,249,531.83 789,709,893.07
(3) Significant financial information of material non-wholly-owned subsidiaries
Unit: RMB
Closing balance Opening balance
Non-current Non-current
Name of the subsidiary Current assets Non-current assets Total assets Current liabilities liabilities Total liabilities Current assets Non-current assets Total assets Current liabilities liabilities Total liabilities
Dongguan Chiwan Wharf
55,949,222.31 949,189,999.03 1,005,139,221.34 249,823,902.83 24,441,054.54 274,264,957.37 46,671,009.88 945,976,738.47 992,647,748.35 320,680,118.45 8,660,056.22 329,340,174.67
Company Limited
Chiwan Container Terminal Co., Ltd 428,617,560.02 1,622,923,013.37 2,051,540,573.39 325,299,398.25 68,299,840.75 393,599,239.00 215,695,997.47 1,717,646,688.07 1,933,342,685.54 238,826,929.89 80,701,813.37 319,528,743.26
Unit: RMB
Jan.-Jun. 2016 Jan.-Jun. 2015
Cash flows from operating Cash flows from operating
Name of the subsidiary Operating income Net profit Total comprehensive income activities Operating income Net profit Total comprehensive income activities
Dongguan Chiwan Wharf
137,362,432.71 32,992,167.94 32,992,167.94 41,785,806.63 139,526,952.33 36,768,241.63 36,768,241.63 29,889,975.87
Company Limited
Chiwan Container Terminal Co., Ltd 374,877,558.79 140,636,274.86 140,636,274.86 164,272,446.41 373,974,452.10 139,373,231.82 139,373,231.82 179,623,649.87
(4) No entities are added to the scope of consolidation in the current year.
- 75 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VII) EQUITY IN OTHER ENTITIES - continued
2. Interests in joint ventures and associates
(1) Material joint ventures or associates
Unit: RMB
Proportion of ownership Proportion of voting power in the Accounting method
Principal interests held by the Group (%) investee held by the Group (%) of investments in
place of Place of Nature of joint ventures and
Investee business incorporation business 30 Jun. 2016 31 Dec. 2015 30 Jun. 2016 31 Dec. 2015 associates
China Overseas Harbor Affairs Warehousing
Laizhou Laizhou 40.00 40.00 40.00 40.00 Equity method
(Laizhou) Co., Ltd and logistics
MPIL Shenzhen British Virgin Islands Investments 50.00 50.00 50.00 50.00 Equity method
(2) Financial information of material joint venture
Unit: RMB
China Overseas Harbor Affairs (Laizhou) Co., Ltd
30 Jun. 2016/ 31 Dec. 2015/
Jan.-Jun. 2016 Jan.-Jun. 2015
Current assets 484,283,543.62 389,291,992.26
Including: cash and cash equivalent 404,090,219.98 275,331,311.14
Non-current assets 1,478,765,131.62 1,746,122,595.97
Total assets 1,963,048,675.24 2,135,414,588.23
Current liabilities 229,932,267.53 250,101,139.11
Non-current liabilities - -
Total liabilities 229,932,267.53 250,101,139.11
Minority interests 851,722.88 (1,439,557.18)
Total equity attributable to shareholders of
1,732,264,684.83 1,886,753,006.30
the parent company
Net assets calculated based on the proportion of
692,905,873.93 754,701,202.52
ownership interest
Adjustments
- Goodwill - -
- Unrealized Profits Resulting from Intragroup
- -
Transactions
- Others 79,090,016.26 -
Carrying amounts of equity investments in Joint Venture 771,995,890.19 754,701,202.52
Operating income 205,506,077.48 158,924,417.57
Financial expenses (1,208,317.13) (1,553,240.62)
Tax expenses 17,586,815.81 14,430,488.27
Net profit 93,016,705.73 59,691,034.49
Other comprehensive income - -
Total comprehensive income 93,016,705.73 59,691,034.49
Dividends received from joint ventures
36,132,189.03 30,785,676.52
in the current year
- 76 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VII) EQUITY IN OTHER ENTITIES- continued
2. Interests in joint ventures and associates - continued
(3) Financial information of material associates
Unit: RMB
MPIL
30 Jun. 2016/ 31 Dec. 2015/
Jan.-Jun. 2016 Jan.-Jun. 2015
Current assets 201,183,551.70 373,493,554.97
Including: cash and cash equivalent 56,053,171.91 103,374,072.06
Non-current assets 1,319,496,092.23 1,367,177,697.91
Total assets 1,520,679,643.93 1,740,671,252.88
Current liabilities 362,603,126.54 405,113,685.76
Non-current liabilities 5,168,503.08 167,056,518.57
Total liabilities 367,771,629.62 572,170,204.33
Minority interests 463,641,786.57 441,275,007.08
Total equity attributable to shareholders of the parent company 689,266,227.76 727,226,041.47
Net assets calculated based on the proportion
344,633,113.88 363,613,020.74
of ownership interest
Adjustments
- Goodwill - -
- Unrealized Profits Resulting from
- -
Intragroup Transactions
- Others (28,218,758.60) (27,015,292.25)
Carrying amounts of equity investments in Joint Venture 316,414,355.28 336,597,728.49
Operating income 242,222,181.42 240,694,935.93
Financial expenses 8,015,452.44 5,827,239.30
Tax expenses 11,674,494.48 10,534,440.73
Net profit 53,437,416.76 57,150,453.65
Other comprehensive income - -
Total comprehensive income 53,437,416.76 57,150,453.65
Dividends received from joint ventures in the current year 36,572,459.27 -
(4) Summarized financial information of immaterial associates
Unit: RMB
30 Jun. 2016/ 30 Jun. 2015/
Jan.-Jun. 2016 Jan.-Jun. 2015
Associates:
Total carrying amounts of investment 350,833,792.05 439,030,643.96
Aggregate of following items calculated based on
the proportion of ownership interest
- Net profit 9,421,228.34 7,018,404.58
- Other comprehensive income - -
- Total comprehensive income 9,421,228.34 7,018,404.58
(5) As at 30 Jun. 2016, the long-term equity investments of the Group were not subject to
restriction on disposal or remittance of return on investments.
- 77 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Group's major financial instruments include Cash and bank balances, available-for-sale
financial assets, borrowings, equity investments, account receivables, account payables, bond
payables etc. Details of these financial instruments are disclosed in Note (V). The risks associated
with these financial instruments and the policies on how to mitigate these risks are set out below.
Management manages and monitors these exposures to ensure the risks are monitored at a certain
level.
The Group adopts sensitivity analysis techniques to analyze how the entity's profit or loss and for
the period and shareholders' equity would have been affected by changes in the relevant risk
variables that were reasonably possible. As it is unlikely that risk variables will change in an
isolated manner, and the interdependence between risk variables will have significant effect on
the amount ultimately influenced by the changes in a single risk variable, the following items are
based on the assumption that each risk variable has changes on a stand-alone basis.
1. Risk management objectives and policies
The Group's risk management objectives are to achieve proper balance between risks and yield,
minimize the adverse impacts of risks on the Group's operation performance, and maximize the
benefits of the shareholders and other equity investors. Based on these risk management
objectives, the Group's basic risk management strategy is to identify and analyze the industry's
exposure to various risks, establish appropriate bottom line for risk tolerance, implement risk
management, and monitors these exposures to ensure the risks are monitored at a certain level.
1.1 Market risk
1.1.1 Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The
Group's exposure to the currency risk is primarily associated with USD and HKD. Several of the
Group's subsidiaries have purchases and sales denominated in HKD while the Group's other
principal activities are denominated and settled in RMB. As at 30 Jun. 2016, the balance of the
Group's assets and liabilities are both denominated in functional currency, except that balance of
assets set out below is in HKD and USD. Currency risk arising from the foreign currency balance
of assets and liabilities may have impact on the Group's performance.
Unit: RMB
Item Closing balance Opening balance
Cash and bank balances 133,940,167.97 272,754,190.87
- HKD 25,293,874.38 108,142,732.77
- USD 108,646,293.59 164,611,458.10
Accounts receivable 40,317,751.27 18,884,797.75
- HKD 4,119,561.21 4,899,257.79
- USD 36,198,190.06 13,985,539.96
Short-term borrowings - 141,610,178.37
- HKD - 141,610,178.37
Accounts payable 1,348,632.11 2,177,189.75
- HKD 1,669,583.85 2,489,360.73
- USD (320,951.74) (312,170.98)
- 78 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VIII ) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.1 Currency risk - continued
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's
currency risk exposures, to minimize the company's currency risk. According to the current risk
exposure and judgment of the exchange rate movements, management considers the probable
heavy loss resulted from foreign exchange rate fluctuation to be fairly low.
Sensitivity analysis on currency risk
The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and
hedges of a net investment in a foreign operation are highly effective. On the basis of the above
assumption, where all other variables are held constant, the reasonably possible changes in the
foreign exchange rate may have the following pre-tax effect on the profit or loss for the period or
equity:
Unit: RMB
Jan.-Jun. 2016 Jan.-Jun. 2015
Effect on Effect on
Changes in Effect on shareholders' Effect on shareholders'
Item exchange rate profits equity profits equity
5% appreciation
All foreign currencies 8,645,464.36 8,645,464.36 (1,906,092.56) (1,906,092.56)
against RMB
5% depreciation
All foreign currencies (8,645,464.36) (8,645,464.36) 1,906,092.56 1,906,092.56
against RMB
1.1.2 Interest rate risk - changes in cash flows
Risk derived from changes in cash flows of financial instruments is mainly related to bank loan
with floating interest rate. Details are disclosed in Note (V) 20. This Group takes the measure of
maintaining the floating interest rate of the bank loan, as a way to reduce the interest rate risk
arising from changes in fair value.
Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
Fluctuations of market interest rate can affect the interest income or expense of a financial
instrument with floating interest rate.
For a financial instrument at fair value with fixed interest rate, the fluctuations of market
interest rate can only affect its interest income or expense.
For a derivative financial instrument recognized as hedging instrument, the fluctuations of
market interest rate affects its fair value and interest rate hedging estimation are effective
and efficient.
Market interest rate at the balance sheet date is adopted to calculate fair value changes of
derivative financial instruments and other financial assets and liabilities under discounted
cash flow method.
- 79 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.3 Other price risk
Available-for-sale financial assets are measured at fair value by the Group at the balance sheet
date. Hence the Group takes risk of changes in the securities market. The Group closely monitors
the effects of changes in the foreign exchange prices on the Group's equity investment securities.
The Group has not taken any measures to reduce prices risk of equity investment securities.
1.2 Credit risk
As at 30 Jun. 2016, the Group's maximum exposure to credit risk which will cause a financial loss
to the Group due to failure to discharge an obligation by the counterparties and financial
guarantees issued by the Group is arising from the carrying amount of the respective recognized
financial assets as stated in the consolidated balance sheet. For financial instruments measured at
fair value, the carrying amount reflects the exposure to risks but not the maximum exposure to
risks; the maximum exposure to risks would vary according to the future changes in fair value.
In order to minimize the credit risk, the Group has delegated a team responsible for determination
of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action
is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each
individual trade debt at each balance sheet date to ensure that adequate impairment losses are
made for irrecoverable amounts. In this regard, the management of the Group considers that the
Group's credit risk is significantly reduced.
The credit risk on liquid funds is limited because the counterparties are banks with high credit
ratings.
The Company adopted necessary policies to make sure that all clients and customers are attributed
with merit credit records.
- 80 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.3 Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and
cash equivalents deemed adequate by the management to finance the Group's operations and
mitigate the effects of fluctuations in cash flows. The management monitors the utilization of
bank borrowings and ensures compliance with loan covenants.
As at 30 Jun. 2016, the Group has net current assets of RMB1,155,708.56. The Group has
available unutilized bank loan facilities of approximately RMB 990,940,000.00 (31 Dec. 2015:
RMB1,187,560,000.00). Consequently, the management believes that the Group is not exposed to
significant liquidity risks.
The following is the maturity analysis for financial assets and financial liabilities held by the
Group which is based on undiscounted remaining contractual obligations:
Unit: RMB
More than 5
Item Carrying amount Total amount Within one year 1-5 years
years
The non-derivative financial assets
Cash and bank balances 405,872,026.99 405,872,026.99 405,872,026.99 - -
Notes receivable 700,000.00 700,000.00 700,000.00 - -
Accounts receivable 243,122,948.05 243,122,948.05 243,122,948.05 - -
Other receivables 45,731,255.62 45,731,255.62 45,731,255.62 - -
Available-for-sale financial
22,249,200.00 22,249,200.00 22,249,200.00 - -
assets
The non-derivative financial liabilities
Accounts payable 104,297,915.81 104,297,915.81 104,297,915.81 - -
Interest payable 19,715,068.47 19,715,068.47 19,715,068.47 - -
Dividends payable 353,068,137.47 353,068,137.47 353,068,137.47 - -
Other payable 50,513,413.29 50,513,413.29 50,513,413.29 - -
Bonds payable 498,163,287.70 556,074,520.70 28,000,000.00 528,074,520.70 -
(IX) FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Unit: RMB
Closing Balance
Item Level 1 Level 2 Level 3 Total
Measurements at fair value continuously
Available-for-sale financial assets: 8,340,000.00 - - 8,340,000.00
- Equity instruments (Note) 8,340,000.00 - - 8,340,000.00
Total assets measured at fair value continuously 8,340,000.00 - - 8,340,000.00
Note: The available-for-sale financial assets held by the Company represent the fair value of the
circulating shares of Jiang Su Ninghu Expressway Company Ltd at the end of the year.
- 81 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(IX) FAIR VALUE - continued
2. Basis for determining the market price measured at fair value at level I continuously
The market price of assets and liabilities measured at fair value at level I continuously is
determined by the Shanghai stock exchange closing price of equity instruments at 30 Jun. 2016.
3. Information of financial assets and financial liabilities that are not measured at fair value
The management considers that the carrying amount of financial assets and liabilities measured at
amortized cost is approximately equal to the fair value of financial assets and liabilities.
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Unit: RMB
Proportion of the
entity's ownership Proportion of the entity's
Related party Type of the Place of Legal Nature of interests held by the voting power held by the
Name of the parent relationship entity incorporation representative business Issued share capital parent (%) parent (%)
Listed in Hong
CMHI Parent company Hong Kong Li Jian Hong Port shipping HKD18,995,501,528 - 66.10(Note)
Kong
Note: CMHI obtained 8.58% equity of the Company via its subsidiary Jing Feng Company, 25%
equity via its subsidiaries Shenzhen Malai Warehouse Co., Ltd., and obtained another
32.52% equity by entrustment of Nanshan Group's stock, totally holding 66.10% of the
voting shares, so CMHI is the parent company of the Company.
2. Subsidiaries of the Company
The general background and other related information of the subsidiaries are set out in Note (VII)
1.
3. Associates and joint ventures of the Company
The general background and other related information of the associates and joint ventures are set
out in Note (VII) 2.
- 82 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company
Relationships between other related
Name of other related parties parties and the Company
Shenzhen Haiqin Engineering Management Co., Ltd. (Haiqin Engineering) Controlled by the same parent company
Shenzhen Mawan Terminals Co., Ltd. ("SMT") Controlled by the same parent company
Shenzhen Mawan Port Co., Ltd. ("SMP") Controlled by the same parent company
China Merchants Port Services (Shenzhen) Co., Ltd ("CMPS") Controlled by the same parent company
Shekou Container Terminals Limited ("SCT") Controlled by the same parent company
Shenzhen Haixing Harbor Development Co.,Ltd("Haixing") Controlled by the same parent company
Shenzhen Huxing Tug Service Co., Ltd.("Huxing Tug") Controlled by the same parent company
Shenzhen Lianda Tug Service Co., Ltd.(" Lianda Tug") Controlled by the same parent company
Shenzhen Malai Warehouse Co., Ltd. ("Malai Warehouse") Controlled by the same parent company
China Merchants Container Services Ltd.("China Merchants Container") Controlled by the same parent company
Shenzhen Mawan Wharf Co., Ltd. ("SMW") Controlled by the same parent company
Hidoney Developments Co., Ltd. ("Hidoney ") Controlled by the same parent company
China Merchants International Cold Chain (Shenzhen) Company Limited ("CMCCL") Controlled by the same ultimate actual controller
China Ocean Shipping Agency (Shenzhen) Company Limited ("Ocean Shipping Agency") Controlled by the same ultimate actual controller
Shenzhen China Merchants Shangzhi Investment Co., Ltd.("China Merchants Shangzhi ") Controlled by the same ultimate actual controller
Shenzhen China Merchants Qianhaiwan Property Co., Ltd. ("Qianhai Property") Controlled by the same ultimate actual controller
Shenzhen China Merchants International Shipping Agency Co., Ltd.("Shipping Agency") Controlled by the same ultimate actual controller
Youlian Shipyard Shekou Co. Ltd.("Youlian Shipyard") Controlled by the same ultimate actual controller
Shenzhen China Merchants Property Management Co., Ltd.("China Merchants Property") Controlled by the same ultimate actual controller
Guangzhou International Ocean Shipping Agency Co., Ltd.
Controlled by the same ultimate actual controller
( "International Ocean Shipping")
China Ocean Shipping Tally Shenzhen Co., Ltd. ("Ocean Shipping Tally") Controlled by the same ultimate actual controller
Hoi Tung (Shanghai) Company Limited Controlled by the same ultimate actual controller
Sinotrans Shenzhen Marine Shipping Agency Co., Ltd. (“SSMSA”) Controlled by the same ultimate actual controller
Sinotrans Dongguan Logistics Co., Ltd. (“SDL”) Controlled by the same ultimate actual controller
Sinoway Shipping Ltd. (“Sinoway Shipping”) Controlled by the same ultimate actual controller
China Marine Shipping Agency Guangdong Co., Ltd. (“CMSA Guangdong”) Controlled by the same ultimate actual controller
Sinotrans Shenzhen Customs Broker Co., Ltd. (“SSCB”) Controlled by the same ultimate actual controller
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. ("Chiwan Base ") Influenced significantly by parent company
Zengcheng Xinkang property Co., Ltd.("Zengcheng Xinkang") Influenced significantly by parent company
Shenzhen Baowan international logistics Co., Ltd.("Baowan Logistics") Influenced significantly by parent company
Shenzhen Chiwan Property Management Co., Ltd.("Chiwan Property") Influenced significantly by parent company
Shenzhen Xuqin Industrial Development Co., Ltd.(“Xuqin”) Influenced significantly by parent company
Invetsor that has significant influence on the
Nanshan Group
company
China Development Finance Company LTD. Influenced significantly by parent company
Influenced significantly by the ultimate actual
China Merchant Bank Co., Ltd.("CMB")
controller
- 83 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions
(1) Provision and receipt of services
Unit: RMB
Pricing and decision-
Content of related party making procedures of
Related parties transaction related party transactions Jan.-Jun. 2016 Jan.-Jun. 2015
Receipt of services :
Haixing Load and unload service Negotiation 2,050,908.52 2,141,837.73
Sinotrans Shenzhen Marine Shipping Agency Co., Ltd. (“SSMSA”) Technical service fee Negotiation 1,747,860.00 1,615,505.00
China Merchants Holdings (International) Information Technology Company Ltd Technical service fee Negotiation 1,138,679.23 1,261,894.33
Property management
Chiwan Property Negotiation 925,553.89 999,432.50
service
SMT Load and unload service Negotiation 556,560.00 -
Property management
Zengcheng Xinkang Negotiation 393,625.32 335,901.20
service
Xuqin Landscape Engineering Negotiation 311,998.48 525,992.00
SMW Load and unload service Negotiation 250,330.19 39,456.60
CMBL Load and unload service Negotiation 243,745.29 240,067.00
Ocean Shipping Agency Agency service Negotiation 243,675.00 107,955.00
Lianda Tug Tugboat service Negotiation 163,684.43 84,476.25
Sinotrans Dongguan Logistics Co., Ltd. (“SDL”) logistics service Negotiation 163,633.97 256,471.42
Haiqin Engineering Project management Negotiation 138,578.13 257,194.15
Property management
China Merchants Property Negotiation 125,089.30 74,088.90
service
SMP Load and unload service Negotiation 97,000.75 -
SCT Trailer service etc. Negotiation 69,056.60 -
Shipping Agency Agency service Negotiation - 4,925.51
Huxing Tug Tugboat service Negotiation - 11,686.42
China Merchants Container Trailer service Negotiation - 245,915.12
Hoi Tung (Shanghai) Company Limited Purchase of goods Negotiation - 312,426.96
Total 8,619,979.10 8,515,226.09
Rendering of services:
SCT Trailer service etc. Negotiation 7,206,689.95 6,215,150.37
Ocean Shipping Agency Tugboat service Negotiation 5,885,342.17 3,990,159.84
SMT Trailer service etc. Negotiation 5,873,774.53 6,701,000.23
SMP Tugboat service Negotiation 3,490,884.45 5,019,970.32
Sinotrans Shenzhen Marine Shipping Agency Co., Ltd. (“SSMSA”) Trailer service etc Negotiation 1,981,700.67 1,173,720.96
Shipping Agency Trailer service etc. Negotiation 1,283,371.50 1,068,751.71
China Overseas Harbour Affairs (Laizhou) Co., Ltd Labor dispatch service Negotiation 736,553.60 -
International Ocean Shipping Berthage fee Negotiation 417,729.46 282,226.00
Lianda Tug Tugboat service Negotiation 268,439.64 689,351.72
Youlian Shipyard Tugboat service Negotiation 121,635.85 334,232.40
CMCCL Trailer service Negotiation 118,620.75 273,894.66
CMBL Trailer service Negotiation 39,004.71 636,094.34
Ocean Shipping Tally Others Negotiation 32,233.58 32,790.00
Sinoway Shipping Ltd. (“Sinoway Shipping”) Load and unload service Negotiation 31,055.44 50,872.72
China Marine Shipping Agency Guangdong Co., Ltd. (“CMSA Guangdong”) Load and unload service Negotiation 28,296.23 63,675.48
Zengcheng Xinkang Others Negotiation 2,701.97 3,302.51
Huxing Tug Tugboat service Negotiation - 45,788.21
Total 27,518,034.50 26,580,981.47
- 84 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties
The Group as the lessor:
Unit: RMB
Lease income Lease income
recognised in the recognised in the
Name of lessee Type of leased assets current year previous year
Coastal line, packing yards, road lighting,
Chiwan Base - 6,095,250.00
etc,
CMBL Crane 932,038.86 932,038.86
Total 932,038.86 7,027,288.86
The Group as the lessee:
Unit: RMB
Lease payment
Lease payment recognised in
recognised in the previous
Name of lessor Type of leased assets the current year year
Nanshan Group Land, Office and packing yard 32,410,191.19 31,962,834.21
Malai Warehouse Office 4,642,399.87 3,613,869.00
Chiwan Base Office 2,706,819.39 734,456.40
CMPS Former Bay port lands 1,584,900.00 1,584,900.00
China Merchants Shangzhi Buildings 377,448.18 89,568.00
Qianhai Property Staff dormitory 108,696.18 131,522.50
Baowan Logistics Warehouse 42,400.76 54,954.23
SCT Crane 401,285.71 341,616.00
Total 42,274,141.28 38,513,720.34
(3) Transfers of assets involved with related parties
Unit: RMB
related party Related trade Jan.-Jun. 2016 Jan.-Jun. 2015
Transfer-out of empty forklifts and
SMW 129,227.69 -
computers
(4) Compensation for key management personnel
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Compensation for key management personnel 4,504,067.50 4,269,210.00
- 85 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties
Unit: RMB
Item Related parties Closing balance Opening balance
Cash and bank CMB 230,034,690.27 168,955,890.49
China Development Finance Company LTD. 259,242.53 55,649,145.28
Total 230,293,932.80 224,605,035.77
Accounts receivable SCT 2,661,142.17 2,379,795.00
Ocean Shipping Agency 2,299,180.80 1,608,650.60
SMT 1,041,061.65 1,500,641.58
SSMSA 564,662.20 6,910.00
SMP 521,285.02 1,114,816.72
Shipping Agency 85,186.00 116,172.00
CMSA Guangdong 29,994.00 57,258.00
CMBL 9,300.00 16,630.00
Chiwan Base - 5,113,500.00
China Overseas Harbour Affairs (Laizhou) Co.,
- 535,207.20
Ltd
Youlian shipyard - 12,680.00
Others 52,550.23 20,341.00
Total 7,264,362.07 12,482,602.10
Other receivables SMP 9,004,511.91 985,340.31
SMT 5,816,232.37 1,934,775.73
CMBL 2,057,705.47 1,868,304.61
Nanshan Group 1,374,300.09 1,054,300.09
SCT 1,245,976.00 1,245,976.00
Qianhai Property 654,480.00 654,480.00
Xuqin 323,000.00 323,000.00
China Merchants Shangzhi 198,597.20 240,263.20
Chiwan Base 135,621.91 135,621.91
Chiwan Property 5,294.00 5,294.00
Haixing - 311,494.00
CMPS - 311,494.00
Others 49,719.00 56,869.00
Total 20,865,437.95 9,127,212.85
Accounts payable Nanshan Group 25,283,735.75 20,710,081.71
Haixing 2,120,588.00 343,405.00
SSMSA 667,552.71 1,114,450.51
Xuqin 635,704.90 2,224,268.57
SCT 345,150.00 -
SMT 306,297.60 28,747.20
Haiqin Engineering 138,578.13 -
China Merchants Holdings (International)
125,000.00 -
Information Technology Company Ltd.
Zengcheng Xinkang 119,940.33 150,810.50
SMP 89,485.20 -
Hoi Tung (Shanghai) Company Limited 53,962.75 192,593.29
Others 28,201.80 60,000.00
Total 29,914,197.17 24,824,356.78
Dividends payable Hidoney 38,248,386.76 38,248,386.76
Nanshan Group 85,971,697.47 -
Malai Warehouse 66,088,282.53 -
Total 190,308,366.76 38,248,386.76
- 86 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
Unit: RMB
Item Related parties Closing balance Opening balance
Other payables SMT 1,705,596.08 704,405.12
SMP 1,167,302.87 362,861.51
China Merchants Holdings (International)
993,521.00 508,921.00
Information Technology Company Ltd.
CMPS 839,997.00 -
Chiwan Base 689,477.50 -
China Merchants Shangzhi 352,598.40 -
Nanshan Group 249,214.83 111,991.70
SCT 72,616.93 470,047.59
Haiqin Engineering 56,177.03 88,977.03
CMBL 44,520.00 67,080.00
Sinotrans Shenzhen Customs Broker Co.,
36,327.00 31,290.00
Ltd. (“SSCB”)
CMHI 35,535.40 27,194.56
China Merchants Property 35,198.50 1,464.12
Xuqin 11,500.00 11,500.00
International Ocean Shipping 10,000.00 10,000.00
Hoi Tung (Shanghai) Company Limited - 1,000,000.00
Total 6,299,582.54 3,395,732.63
(XI) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
(1) Capital commitments
Unit: RMB
Item Closing balance Opening balance
Capital commitments that have been entered into but have not
been recognised in the financial statements:
- Commitment for acquisition of long-term assets 190,342,880.37 25,429,546.67
(2) Operating lease commitments
As of the balance sheet date, the Group had the following commitments in respect of non-
cancellable operating leases:
Unit: RMB
Item Closing balance Opening balance
Minimum lease payments under non-cancellable
operating leases:
1st year subsequent to the balance sheet date 5,247,395.23 3,285,372.56
2nd year subsequent to the balance sheet date 959,412.96 599,468.69
3rd year subsequent to the balance sheet date 483,527.16 389,421.36
More than 3 years 602,967.54 742,712.59
Total 7,293,302.89 5,016,975.20
2. Contingencies
No material contingencies that should be disclosed by the Group.
- 87 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XII) EVENTS AFTER THE BALANCE SHEET
1. Profit appropriation
Unit: RMB
Item Amount
Proposed distribution of profits or dividends (Note) 264,353,129.30
Note: Please refer to Note (V) 39.
(XIII) OTHER SIGNIFICANT EVENTS
1. Annuity plan
On 3 June 2008, the Group participated in the enterprise annuity plan of Nanshan Group approved
by Shenzhen government. Funds involved were deposited in the managed account coordinated by
Nanshan Group. Staffs would be qualified to participant the annuity plan if the following
requirements are met:
(i)Staff with labor contracts signed. (ii)Staff with basic pension participated in.
(iii)On-the job and in-service staff with probation expired. (iv)Voluntarily participated in the plan
and perform the obligation of payment. The Group and staffs share the payment of the
supplementary pension. Excess payment would not be allowed so as to keep the payment made by
the Group and total payment made by the Group and the individual under the limit of one-twelfth
and the one-sixth of the prior year's gross payroll respectively.
2. Segment reporting
(1) Basis for determining and accounting treatments of reporting segments
Subject to the Group's in-house infrastructure, management requirements and internal reporting
system, the operation businesses of the Group are classified into four business segments. The
Group's management periodically evaluates the operating results of these segments to make
decisions about resources to be allocated to the segments and assess their performance. On the
basis of such business segments, the Group determined three reporting segments including load
and unload services, trailer and tugboat business, agency services and other segments, which are
classified based on the nature of business. Major products and services delivered or provided by
each of the reporting segments are load and unload services, trailer and tugboat business, agency
services and other segments.
Segment information is disclosed in accordance with the accounting policies and measurement
standards adopted by each segment when reporting to management. The measurement basis is
consistent with the accounting and measurement basis in the preparation of the financial
statements.
- 88 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting - continued
(2) Segment financial information
Unit: RMB
Load and unload services Trailer and tugboat business Agency and other services Unappropriated items Inter-segment deduction Total
Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015
Operating income
Revenue arising from external
844,465,634.31 829,240,305.95 46,615,750.31 45,315,696.51 13,728,267.62 6,232,006.32 - - - - 904,809,652.24 880,788,008.78
transactions
Revenue arising from inter-segment
- - 30,707,142.71 29,234,240.41 - - - - (30,707,142.71) (29,234,240.41) - -
transactions
Total segment operating income 844,465,634.31 829,240,305.95 77,322,893.02 74,549,936.92 13,728,267.62 6,232,006.32 - - (30,707,142.71) (29,234,240.41) 904,809,652.24 880,788,008.78
Reconciling items:
Operating Income in the financial statements 904,809,652.24 880,788,008.78
Operating cost 458,877,279.34 438,850,615.83 56,538,338.80 53,470,195.84 7,450,049.16 340,940.33 - - (30,707,142.71) (29,613,140.88) 492,158,524.59 463,427,511.59
Segment operating profits 385,588,354.97 390,389,690.12 20,784,554.22 21,079,741.08 6,278,218.46 (340,940.33) - - - 378,900.47 412,651,127.65 417,360,497.19
Reconciling items:
Business taxes and surcharges 2,081,550.23 2,529,104.09 125,688.62 86,179.31 685,817.25 1,302,213.48 - - 274,886.31 - 3,167,942.41 3,917,496.88
Administrative expenses 57,605,219.02 59,508,690.44 6,952,748.64 6,202,442.16 3,001,025.95 3,344,646.80 14,388,875.10 15,146,092.52 - - 81,947,868.71 84,201,871.92
Financial expenses 6,084,491.80 15,837,290.68 (760,243.01) (529,678.06) (561,181.41) (29,532.12) 9,490,546.97 18,892,719.79 - - 14,253,614.35 34,170,800.29
Impairment losses of assets 288,044.16 153,277.43 - - - - - - - - 288,044.16 153,277.43
Investment Income - - - - - - 301,993,086.59 48,834,997.32 (232,692,830.18) - 69,300,256.41 48,834,997.32
Operating profit 319,529,049.76 310,489,685.05 14,466,359.97 10,081,431.96 3,152,556.67 2,536,962.62 278,113,664.52 15,026,275.36 - - 382,293,914.43 343,752,047.99
Non-operating income 2,488,565.79 1,012,630.77 120,000.02 - 30,648.00 - - - - - 2,639,213.81 1,012,630.77
Non-operating expenses 500,603.63 47,076.40 862.00 46,970.40 - 50.00 - - - - 501,465.63 95,584.70
Gross profit 321,517,011.92 315,008,118.41 14,585,497.99 10,075,179.47 3,183,204.67 2,536,912.62 278,113,664.52 15,026,275.36 - - 384,431,662.61 344,669,094.06
Income tax expenses 44,125,732.88 30,881,924.19 3,646,374.51 3,399,706.82 44,766.77 408,193.79 1,844,132.60 1,972,722.15 - - 49,661,006.76 34,458,531.16
Net profit 277,391,279.04 266,667,493.22 10,939,123.48 7,556,393.60 3,138,437.90 2,128,718.83 276,269,531.92 13,053,553.21 - - 334,770,655.85 310,210,562.90
- 89 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting - continued
(2) Segment financial information - continued
Unit: RMB
Load and unload services Trailer and tugboat business Agency and other services Unappropriated items Inter-segment deduction Total
Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015 Jan.-Jun. 2016 Jan.-Jun. 2015
Total segment assets 5,430,595,832.96 5,204,261,977.63 210,588,801.07 214,256,543.39 36,184,102.36 36,769,361.05 7,535,075,833.13 7,240,499,230.08 (6,585,683,289.43) (5,984,176,786.52) 6,626,761,280.09 6,711,610,325.63
Total assets in the financial
5,430,595,832.96 5,204,261,977.63 210,588,801.07 214,256,543.39 36,184,102.36 36,769,361.05 7,535,075,833.13 7,240,499,230.08 (6,585,683,289.43) (5,984,176,786.52) 6,626,761,280.09 6,711,610,325.63
statements
Total segment liabilities 1,470,340,168.48 1,503,160,043.11 114,510,739.19 117,545,119.39 26,199,615.99 27,417,898.60 1,764,787,576.27 1,876,227,583.15 (2,052,120,486.34) (1,792,016,080.20) 1,323,717,613.59 1,732,334,564.05
Total liabilities in the financial
1,470,340,168.48 1,503,160,043.11 114,510,739.19 117,545,119.39 26,199,615.99 27,417,898.60 1,764,787,576.27 1,876,227,583.15 (2,052,120,486.34) (1,792,016,080.20) 1,323,717,613.59 1,732,334,564.05
statements
Supplementary information
Depreciation 91,078,964.84 94,945,527.24 5,890,089.17 5,688,138.37 316,828.10 358,281.40 83,115.21 89,980.37 - - 97,368,997.32 101,081,927.38
Amortization 20,121,115.31 20,579,906.06 8,748.12 8,748.12 - - 142,659.36 402,656.15 - - 20,272,522.79 20,991,310.33
Interest income 1,173,650.03 422,535.25 210,552.90 46,382.11 403,115.28 2,746.98 (4,195,616.76) 2,604,180.24 5,803,954.29 - 3,395,655.74 3,075,844.58
Interest expense (5,924,339.39) 169,328.56 (65,254.86) - - - 21,970,301.28 35,718,696.77 5,803,954.29 - 21,784,661.32 35,888,025.33
Investment income from
long-term equity investment - - - - - - 63,008,068.56 48,454,997.32 - - 63,008,068.56 48,454,997.32
under equity method
Long-term equity investment
- - - - - - 1,439,244,037.52 1,511,009,595.85 - - 1,439,244,037.52 1,511,009,595.85
under equity method
Non-current assets other than
4,303,834,271.18 4,419,526,451.64 120,159,617.69 129,617,569.96 16,188,638.70 16,849,555.39 180,875,139.97 183,240,200.52 (162,765,586.89) (162,765,586.89) 4,458,292,080.65 4,586,468,190.62
long-term equity investment
- 90 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting – continued
(3) Segment revenue from external transactions by source and non-current assets by geographical
location
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Revenue from external transactions with domestic customers 903,301,572.23 878,925,546.75
Revenue from external transactions with Hong Kong customers 1,508,080.01 1,862,462.03
Total 904,809,652.24 880,788,008.78
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Non-current assets sourced from Mainland of PRC 4,424,757,130.49 4,551,743,208.58
Non-current assets sourced from Hong Kong 11,429.34 23,396.06
Total 4,424,768,559.83 4,551,766,604.64
(4) Degree of reliance on major customers
The total operating income derived from the top five clients of the Group is RMB428,403,837.31 ,
occupying 47.35% of the Group's total operating income.
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY’S FINANCIAL STATEMENTS
1. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: RMB
Closing balance Opening balance
Carrying amount balance Bad debt provision Carrying amount balance Bad debt provision
Proportion Proportion Proportion Proportion
Category Amount (%) Amount (%) Carrying value Amount (%) Amount (%) Carrying value
Accounts
receivable that are
individually
significant and for
- - - - - - - - - -
which bad debt
provision has
been assessed
individually
Accounts receivable for which bad debt provision has been assessed by credit risk portfolios
Portfolio 1 1,170,198.03 7.54 - - 1,170,198.03 5,648,707.20 28.12 - - 5,648,707.20
Portfolio 2 14,340,196.08 92.46 1,895.24 0.00 14,338,300.84 14,436,075.12 71.88 - - 14,436,075.12
Subtotal of
15,510,394.11 100.00 1,895.24 0.00 15,508,498.87 20,084,782.32 100.00 - - 20,084,782.32
portfolios
Accounts
receivable that are
not individually
significant but for
- - - - - - - - - -
which bad debt
provision has
been assessed
individually
Total 15,510,394.11 100.00 1,895.24 0.00 15,508,498.87 20,084,782.32 100.00 - - 20,084,782.32
- 91 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY’S FINANCIAL STATEMENTS -
continued
1. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued
Accounts receivable portfolios for which bad debt provision has been assessed using the aging
analysis approach:
Unit: RMB
Closing balance Opening balance
Carrying Bad debt Proportion Carrying amount Bad debt Proportion
Aging amount balance provision (%) Carrying value balance provision (%) Carrying value
Within 1 year 14,340,196.08 1,895.24 100.00 14,338,300.84 14,436,075.12 - - 14,436,075.12
(2) Top five balances of accounts receivable classified by debtor:
Unit: RMB
Proportion of
the closing
Relationship balance to the Closing balance
with the total accounts of bad debt
Name of entity Company Closing balance receivable (%) provision
Customer F Customer 3,140,982.63 20.25 -
Customer G Customer 2,885,422.50 18.60 -
Customer H Customer 1,727,640.34 11.14 -
Customer I Customer 1,375,230.73 8.87 -
Customer J Customer 1,052,136.74 6.78 -
Total 10,181,412.94 65.64 -
2. Other receivables
(1) Disclosure of other receivables by categories
Unit: RMB
Closing balance Opening balance
Carrying amount balance Bad debt provision Carrying amount balance Bad debt provision
Proportion Proporti Proportion Proportion
Category Amount (%) Amount on (%) BCarrying value Amount (%) Amount (%) BCarrying value
Other receivables that are
individually significant and for
which bad debt provision has been
- - - - - - - - - -
assessed individually
Other receivables for which bad debt provision has been assessed by credit risk portfolios
Portfolio 1 650,036,584.18 99.82 650,036,584.18 678,272,733.47 99.82 - 678,272,733.50
Portfolio 2 1,187,930.13 0.18 383,456.60 32.28 804,473.53 1,218,472.01 0.18 383,456.60 31.47 835,015.41
Subtotal of portfolios 651,224,514.31 100.00 383,456.60 0.06 650,841,057.71 679,491,205.48 100.00 383,456.60 0.06 679,107,748.88
Other receivables that are not
individually significant but for
- - - - - - - - - -
which bad debt provision has been
assessed individually
Total 651,224,514.31 100.00 383,456.60 0.06 650,841,057.71 679,491,205.48 100.00 383,456.60 0.06 679,107,748.88
- 92 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY’S FINANCIAL STATEMENTS -
continued
2. Other receivables - continued
(1) Disclosure of other receivables by categories - continued
Other receivables portfolios for which bad debt provision has been assessed using the aging
analysis
Unit: RMB
Closing balance Opening balance
Carrying Bad debt Proportion Carrying Carrying Bad debt Proportion Carrying
Aging amount balance provision (%) value amount balance provision (%) value
Within 1 year 804,473.53 - - 804,473.53 835,015.41 - - 835,015.41
More than 1 year but
- - - - - - - -
not exceeding 2 years
More than 2 years but
- - - - - - - -
not exceeding 3 years
More than 3 years 383,456.60 383,456.60 100.00 - 383,456.60 383,456.60 100.00 -
Total 1,187,930.13 383,456.60 32.28 804,473.53 1,218,472.01 383,456.60 31.47 835,015.41
(2) Disclosure of other receivables by nature
Unit: RMB
Item Closing balance Opening balance
Temporary payments 3,216,189.42 3,726,739.80
Deposits 399,725.49 249,328.31
Others 647,608,599.40 675,515,137.37
Including: amounts due from subsidiaries 643,957,544.57 674,871,443.87
Total 651,224,514.31 679,491,205.48
(3) Top five balances of other receivables classified by debtor:
Unit: RMB
Proportion of the
amount to the Closing balance
total accounts of bad debt
Name of entity Nature of the fund Amount Aging receivable (%) provision
Dongguan Chiwan Terminal Temporary payment due
431,475,000.00 Within one year 66.26 -
Company Limited. from subsidiaries
Dongguan Chiwan Wharf Temporary payment due
209,500,000.00 Within one year 32.17 -
Co., Ltd. from subsidiaries
Chiwan Wharf Holdings Temporary payment due More than three
2,850,733.79 0.44 -
(H.K.) Limited. from subsidiaries year
Temporary payment due
SCT 1,245,976.00 Within one year 0.19 -
from related parties
Temporary payment due
Nanshan Group 1,022,760.39 Within one year 0.16 -
from related parties
Total 646,094,470.18 99.21 -
- 93 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY’S FINANCIAL STATEMENTS - continued
3. Long-term equity investments
Unit: RMB
Changes
Reconciling
items from Closing
other Cash dividends or balance of
Investment income under comprehensive Other equity profits announced Provision for provision for
Investee Opening balance Increase Decrease equity method income movements of issuance impairment Others Closing balance impairment
I. Subsidiaries
Shenzhen Chiwan International Freight
Not
Agency 5,500,000.00 - - Not applicable Not applicable Not applicable - - 5,500,000.00 -
applicable
Company Limited
Shenzhen Chiwan Harbor Container Not
250,920,000.00 - - Not applicable Not applicable Not applicable - - 250,920,000.00 -
Company Limited applicable
Shenzhen Chiwan Transportation Not
7,000,000.00 - - Not applicable Not applicable Not applicable - - 7,000,000.00 -
Company Limited applicable
Not
Chiwan Wharf Holdings (H.K.) Limited 1,070,000.00 - - Not applicable Not applicable Not applicable - - 1,070,000.00 -
applicable
Shenzhen Chiwan Tugboat Company Not
24,000,000.00 - - Not applicable Not applicable Not applicable - - 24,000,000.00 -
Limited applicable
Chiwan Container Terminal Company Not
421,023,199.85 - - Not applicable Not applicable Not applicable - - 421,023,199.85 -
Limited applicable
Not
Dongguan Chiwan Wharf Company Limited 186,525,000.00 - - Not applicable Not applicable Not applicable - - 186,525,000.00 -
applicable
Dongguan Chiwan Terminal Company Not
175,000,000.00 - - Not applicable Not applicable Not applicable - - 175,000,000.00 -
Limited applicable
Subtotal 1,071,038,199.85 - - - 1,071,038,199.85 -
II. Associates -
CMHI 12,833,857.95 1,674,220.38 14,508,078.33 -
CMBL 145,351,043.43 3,873,503.98 957,821.05 150,182,368.46 -
Subtotal 158,184,901.38 5,547,724.36 957,821.05 164,690,446.79 -
III. Joint ventures
China Overseas Harbor Affairs (Laizhou)
770,930,325.06 37,197,754.16 (36,132,189.03) 771,995,890.19 -
Co., Ltd
Total 2,000,153,426.29 42,745,478.52 957,821.05 (36,132,189.03) 2,007,724,536.83 -
- 94 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY’S FINANCIAL STATEMENTS -
continued
4. Operating income and operating costs
Unit: RMB
Jan.-Jun. 2016 Jan.-Jun. 2015
Item Income Cost Income Cost
Principal operating 90,048,025.87 64,585,052.56 110,629,730.60 69,165,463.86
Other operating 15,662,004.26 364,898.28 16,518,108.02 495,265.13
Total 105,710,030.13 64,949,950.84 127,147,838.62 69,660,728.99
5. Investment income
Details of investment income
Unit: RMB
Item Jan.-Jun. 2016 Jan.-Jun. 2015
Income from long-term equity investments under equity method 42,745,478.52 29,033,790.50
Investment income on available-for-sale financial assets, etc. 6,292,187.85 380,000.00
Total 49,037,666.37 29,413,790.50
- 95 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY’S FINANCIAL STATEMENTS -
continued
6. Related party transactions
(1) Provision and receipt of services
Unit: RMB
Pricing and decision-
making procedures of
related party
Content of related party transaction transactions Jan.-Jun. 2016 Jan.-Jun. 2015
Receipt of services :
Chiwan Shipping (Hong Kong) Ltd Agency service Negotiation 940,321.59 -
Xuqin Landscape engineering Negotiation 179,068.96 264,907.00
Chiwan Property Property management service Negotiation 148,751.65 202,133.70
Haiqin Engineering Engineering Management Negotiation 138,578.13 -
China Merchants Holdings (International)
Technical service Negotiation 74,339.65 36,226.44
Information Technology Company Ltd
Shenzhen Chiwan Tugboat Company Limited Tugboat services Negotiation 13,766.04 -
Shenzhen Chiwan International Freight Agency
Agency service Negotiation 5,368.30 -
Company Limited
Shenzhen Chiwan Transportation Company Limited Transportation services Negotiation - 217,933.96
SMW Load and unload service Negotiation - 30,400.00
Shipping Agency Agency service Negotiation - 4,925.51
Haixing Load and unload service Negotiation - 60,828.30
China Merchants Container Transport services Negotiation - 245,915.12
Total 1,500,194.32 1,063,270.03
Rendering of services:
Dongguan Chiwan Wharf Company Limited Labor dispatch service Negotiation 11,552,504.65 7,149,956.00
China Overseas Harbour Affairs (Laizhou) Co., Ltd Labor dispatch service Negotiation 736,553.60 -
SSMSA Load and unload service Negotiation 125,799.71 204,358.46
Shipping Agency Berthage fee , etc, Negotiation 76,144.33 27,983.71
Ocean Shipping Tally Load and unload service Negotiation 32,233.58 32,790.00
Ocean Shipping Agency Load and unload service Negotiation 18,736.79 53,372.64
SCT Load and unload service Negotiation - 17,264.15
SMP Load and unload service Negotiation - 11,320.75
SMT Load and unload service Negotiation - 9,056.60
Total 12,541,972.66 7,506,102.31
(2) Leases with related parties
The Group as the lessor:
Unit: RMB
Lease income Lease income
recognised in the recognised in the
Name of lessee Type of leased assets current year previous year
Coastal line, packing yards and
Chiwan Base
road lighting
- 6,095,250.00
- 96 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY’S FINANCIAL STATEMENTS -
continued
6. Related party transactions - continued
(2) Leases with related parties - continued
The Group as the lessee:
Unit: RMB
Lease payment recognised in Lease payment recognised in
Name of lessor Type of leased assets the current year the previous year
Land, Office and packing
Nanshan Group 3,764,963.47 4,659,361.09
yard
Chiwan Base Office 786,661.42 734,456.40
Malai Warehouse Office 1,622,229.74 552,435.00
SCT Crane 360,000.00 300,000.00
Total 6,533,854.63 6,246,252.49
7. Amounts due from/to related parties
Unit: RMB
Item Related parties Closing balance Opening balance
China Merchants Bank 145,371,362.18 57,416,519.17
Cash and bank
China Development Finance Co., Ltd. 259,242.53 55,649,145.28
balances
Total 145,630,604.71 113,065,664.45
Accounts Dongguan Chiwan Wharf Company Limited 1,148,255.03 -
receivable
Chiwan Base - 5,113,500.00
China Overseas Harbour Affairs (Laizhou) Co., Ltd - 535,207.20
Others 21,943.00 -
Total 1,170,198.03 5,648,707.20
Other receivables Dongguan Chiwan Terminal Company Limited 431,475,000.00 443,275,000.00
Dongguan Chiwan Wharf Company Limited 209,500,000.00 227,500,000.00
Chiwan Wharf Holdings (H.K.) Limited 2,850,733.79 2,850,467.87
SCT 1,245,976.00 1,245,976.00
Nanshan Group 1,022,760.39 1,022,760.39
Shenzhen Chiwan Tugboat Company Limited 197,489.16 -
Chiwan Base 135,621.91 135,621.91
China Merchants Shangzhi 58,766.40 58,766.40
Chiwan Container Terminal Company Limited - 1,245,976.00
Haixing - 311,494.00
CMPS - 311,494.00
Others 52,773.53 38,420.45
Total 646,539,121.18 677,995,977.02
- 97 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY’S FINANCIAL STATEMENTS -
continued
7. Amounts due from/to related parties - continued
Item Related parties Closing balance Opening balance
Long-term
Chiwan Wharf Holdings (H.K.) Limited 11,004,284.75 11,004,284.75
receivables
Accounts Nanshan Group 3,108,875.45 3,106,063.74
payable
Xuqin 635,704.90 1,445,977.80
SCT 300,000.00 60,000.00
Haiqin Engineering 138,578.13 -
Total 4,183,158.48 4,612,041.54
Other payables Shenzhen Chiwan Harbour Container Company Limited 207,862,179.47 190,759,953.28
Chiwan Container Terminal Company Limited 91,702,405.48 22,420,393.04
Shenzhen Chiwan Transportation Company Limited 44,917,575.38 42,501,681.28
Dongguan Chiwan Wharf Company Limited 11,867,813.41 28,650,894.16
Shenzhen Chiwan Tugboat Company Limited 9,562,617.70 17,656,552.77
Dongguan Chiwan Terminal Company Limited 7,055,777.87 14,259,301.60
Shenzhen Chiwan International Freight Agency
778,788.05 1,059,758.93
Company Limited
Chiwan Shipping (Hong Kong) Ltd 375,032.27 673,055.09
Nanshan Group 135,402.99 60,054.00
China Merchants Shangzhi 117,532.80 -
Xuqin 10,000.00 10,000.00
China Merchants Holdings (International) Information
6,400.00 6,400.00
Technology Company Ltd.
Total 374,391,525.42 318,058,044.15
Long-term
Chiwan Wharf Holdings (H.K.) Limited 116,662,000.00 -
payables
Interests payable Shenzhen Chiwan Transportation Company Limited 1,003,119.20 796,967.00
Shenzhen Chiwan Tugboat Company Limited 94,900.01 23,204.11
Shenzhen Chiwan Harbour Container Company Limited - 1,121,027.45
Total 1,098,019.21 1,941,198.56
Note: The Company collectively manages and coordinates the use of the capital within the Group.
The subsidiaries deposit their funds with the Company, and apply for fund when needed.
The Company collects fund usage expenses based on the actual financing costs incurred.
- 98 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2016
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY’S FINANCIAL STATEMENTS -
continued
8. Supplementary information to the cash flow statement
Unit: RMB
Supplementary information Jan.-Jun. 2016 Jan.-Jun. 2015
1. Reconciliation of net profit to cash flows from operating
activities:
Net profits 51,196,211.68 30,727,505.28
Add: Provision for impairment losses of assets - -
Depreciation of fixed assets 6,151,059.41 7,015,924.80
Depreciation and amortization of investment property 289,762.32 461,901.95
Amortization of intangible assets 1,675,610.86 1,481,217.90
Amortization of long-term prepaid expenses 89,810.34 376,807.13
Losses(Profits) on disposal of fixed assets, intangible assets
60,987.36 (75,111.88)
and other long-term assets
Financial expenses 22,414,459.22 41,219,487.75
Loss (Gains) arising from investments (49,037,666.37) (29,413,790.50)
Decrease (Increase) in deferred tax assets - -
Decrease(Increase) in inventories (35,787.10) 280,323.23
Decrease (Increase) in operating receivables 127,664,188.41 151,291,135.82
Increase (Decrease) in operating payables (49,194,021.19) (54,016,752.86)
Net cash flows from operating activities 111,274,614.94 149,348,648.62
2. Net changes in cash and cash equivalents:
Closing balance of cash 190,393,031.45 123,860,697.56
Less: Opening balance of cash 331,615,767.60 281,427,034.32
Net increase (decrease) in cash (141,222,736.15) (157,566,336.76)
- 99 -
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2016
1. BREAKDOWN OF EXTRAORDINARY GAINS AND LOSSES
Unit: RMB
Item Amounts Description
Profit or loss on disposal of non-current assets (176,169.44)
Tax refunds or reductions with ultra vires approval or without official
-
approval documents
Government grants recognized in profit or loss (except for grants that are closely
related to the Company's business and are in amounts and quantities fixed in 419,197.16
accordance with the national standard)
Money lending income earned from non-financial institutions in profit or loss -
The excess of attributable fair value of identifiable net assets over the consideration
-
paid for subsidiaries, associates and joint ventures
Profit or loss on exchange of non-monetary assets -
Profit or loss on entrusted investments or assets management -
Provision of impairment losses for each asset due to force majeure, e.g. acts of God -
Profit or loss on debt restructuring -
Business restructuring expenses, e.g., expenditure for layoff of employees,
-
integration expenses, etc.
Profit or loss relating to the unfair portion in transactions with unfair
-
transaction price
Net profit or loss of subsidiaries recognized as a result of business combination of
enterprises under common control from the beginning of the period up -
to the business combination date
Profit or loss arising from contingencies other than those related to normal operating
-
business
Profit or loss on changes in the fair value of financial assets and financial liabilities
held for trading and investment income on disposal of held-for-trading financial
-
assets, held-for-trading financial liabilities and available-for-sale financial assets,
other than the effective hedging activities relating to normal operating business
Reversal of provision for accounts receivable that are tested for impairment
-
losses individually
Profit or loss on entrusted loans -
Profit or loss on changes in the fair value of investment properties that are
-
subsequently measured using the fair value model
Effects on profit or loss of one-off adjustment to profit or loss for the period
-
according to the requirements by tax laws and accounting laws and regulations
Custodian fees earned from entrusted operation -
Other non-operating income or expenses other than above 1,894,720.46
Other profit or loss that meets the definition of non-recurring profit or loss -
Tax effects 144,553.92
Effects of minority interest (after tax) 174,071.60
Total 1,819,122.66
2. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
The return on net assets and EPS have been prepared by Shenzhen Chiwan Wharf Co., Ltd in accordance
with Information Disclosure and Presentation Rules for Companies Making Public Offering No. 9 -
Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revised in 2010) issued by
China Securities Regulatory Commission.
Unit: RMB
Weighted average return on net EPS
Profits incurred in the current period assets (%) Basic EPS Diluted EPS
Net profit for the current period attributable
to ordinary shareholders
5.88 0.413 0.413
Net profit attributable to ordinary shareholders
after deducting extraordinary gains and 5.84 0.411 0.411
losses
