The Abstract of the 2016 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
Stock Code: 000022/200022 Stock Abbr.: Chiwan Wharf A / Chiwan Wharf B Public Announcement No.: 2017-006
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
THE ABSTRACT OF THE 2016 ANNUAL REPORT
I. Important information
This Abstract is based on the full text of the Annual Report. In order for a full understanding of the operating
results, financial condition and future development planning of the Company, investors are kindly reminded to
read the full text carefully on the media designated by the China Securities Regulatory Commission.
This Abstract is prepared in both Chinese and English. Should there be any discrepancy between the two versions,
the Chinese version shall prevail.
Non-standard auditor’s opinion
□ Applicable √ Inapplicable
Preliminary plan for profit distribution to the common shareholders or turning the capital reserve into the share
capital for the reporting period, which has been reviewed and approved at the board meeting
√ Applicable □ Inapplicable
Share capital increase from the capital reserve
□ Yes √ No
Preliminary plan for profit distribution to the common shareholders for the reporting period which has been
reviewed and approved at the board meeting: Based on the total shares of 644,763,730, a cash dividend of
RMB4.96 (tax included) will be distributed to all the shareholders for every 10 shares that they hold. No bonus
shares will be granted and no capital reserve will be turned into share capital.
Preliminary plan for profit distribution to the preference shareholders for the reporting period which has been
reviewed and approved at the board meeting
□ Applicable √ Inapplicable
II. Company profile
1. Stock profile
Stock abbr. Chiwan Wharf A, Chiwan Wharf B Stock code 000022, 200022
Stock exchange Shenzhen Stock Exchange
Contact information Company Secretary Securities Representative
Name Wang Yongli Hu Jingjing & Chen Dan
8/F, Chiwan Petroleum Building, Zhaoshang Street, Nanshan District,
Office address
Shenzhen, PRC
Fax +86 755 26684117 +86 755 26684117
Tel. +86 755 26694222 +86 755 26694222
E-mail address cwh@szcwh.com cwh@szcwh.com
2. Brief introduction to the main business or products in the reporting period
The Company is principally engaged in the handling, warehousing and transportation of containers and bulk
cargoes, as well as the provision of related services. The Company has 6 container berths and 7 bulk cargo berths
in Chiwan Wharf (Shenzhen), 3 container berths in Mawan Wharf (Shenzhen) and 5 bulk cargo berths in
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The Abstract of the 2016 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
Machong Wharf (Dongguan). The Company also has an investment in Laizhou Wharf in Shandong Province.
In the reporting period, the global economy was in deep change, international trade remained sluggish and slow
growth became an ordinary state for the port industry, urging faster transformation by upgrading and integration of
port resources. As a regional hub for container and bulk cargo carriers, the Company enjoyed growing business
results as well as a stable and improving market position.
3. Accounting and financial highlights
(1) Accounting and financial highlights for the past three years
Does the Company adjust retrospectively or restate the accounting data of previous years due to changes in the
accounting policy or corrections of accounting errors?
□ Yes √ No
Unit: RMB Yuan
Increase/decrease
Item 2016 2015 of current year over 2014
last year
Operating revenues 1,905,107,140.42 1,872,608,596.16 1.74% 1,804,766,176.31
Net profits attributable to
532,376,492.97 527,751,492.42 0.88% 417,594,271.33
shareholders of the parent
Net profits attributable to
shareholders of the parent
530,615,980.15 528,043,530.88 0.49% 417,628,589.12
before extraordinary gains and
losses
Net cash flows from operating
827,754,904.11 977,850,737.45 -15.35% 818,315,147.74
activities
Basic EPS (RMB Yuan/share) 0.826 0.819 0.85% 0.648
Diluted EPS (RMB
0.826 0.819 0.85% 0.648
Yuan/share)
Weighted average ROE (%) 11.64% 12.34% -0.70% 10.36%
Increase/decrease
As at 31 Dec.
As at 31 Dec. 2016 As at 31 Dec. 2015 of current year-end
2014
than last year-end
Total assets 6,620,476,709.79 6,913,772,876.99 -4.24% 6,935,824,199.68
Net assets attributable to
4,709,815,552.89 4,439,600,537.05 6.09% 4,115,298,831.59
shareholders of the Company
(2) Accounting highlights by quarter
Unit: RMB Yuan
Item Q1 Q2 Q3 Q4
Operating revenues 441,414,712.95 463,394,939.29 513,538,393.69 486,759,094.49
Net profits attributable to
121,221,004.55 145,314,502.42 160,704,737.43 105,136,248.57
shareholders of the parent
Net profits attributable to
shareholders of the parent before 120,104,236.05 144,612,148.26 160,374,471.28 105,525,124.56
extraordinary gains and losses
Net cash flows from operating
101,594,145.81 267,063,097.99 204,666,194.32 254,431,465.99
activities
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The Abstract of the 2016 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
Any material differences between the financial indicators above or their summations and those which have been
disclosed in quarterly or semi-annual reports?
□ Yes √ No
4. Share capital and shareholders
(1) Numbers of the common shareholders and the preference shareholders with resumed voting rights as
well as the shareholdings of the top 10 shareholders
Unit: share
Total number of
Total number of Total number of preference
35,947, including 33,345, including
Total number common preference shareholders with
25,640 22,841
of common shareholders at shareholders with resumed voting
A-shareholders and A-shareholders 0 0
shareholders at pervious month-end resumed voting rights at pervious
10,307 and 10,504
period-end of this Report’s rights at month-end of this
B-shareholders B-shareholders
disclosure period-end (if any) Report’s disclosure
(if any)
Shareholdings of shareholders with a stake over 5%
Total shares +/- in Number of Number of
Nature of Shareholding held Pledged or
Name of shareholder reporting restricted shares non-restricted
shareholder percentage frozen shares
at period-end period held shares held
CHINA NANSHAN
State-owned
DEVELOPMENT 32.52% 209,687,067 0 0 209,687,067 0
corporation
(GROUP) INC.
Common
SHENZHEN MALAI
domestic 25.00% 161,190,933 0 0 161,190,933 0
STORAGE CO., LTD.
corporation
KEEN FIELD
Foreign
ENTERPRISES 8.58% 55,314,208 0 0 55,314,208 Unknown
corporation
LIMITED
CMBLSA RE FTIF
TEMPLETON Foreign
7.43% 47,914,954 0 0 47,914,954 Unknown
ASIAN GRW FD GTI corporation
5496
ICBC－LION Common
VALUE GROWTH domestic 0.42% 2,698,775 2,698,775 0 2,698,775 Unknown
STOCK FUND corporation
BBH A/C
VANGUARD
Foreign
EMERGING 0.41% 2,617,518 0 0 2,617,518 Unknown
corporation
MARKETS STOCK
INDEX FUND
SHENWAN
HONGYUAN Foreign
0.39% 2,511,586 2,511,586 0 2,511,586 Unknown
SECURITIES (HK) corporation
LIMITED
CHINA
MERCHANTS State-owned
0.38% 2,451,059 515,483 0 2,451,059 Unknown
SECURITIES (HK) corporation
CO., LTD.
TEMPLETON
Foreign
ASIAN GROWTH 0.29% 1,885,170 -772,682 0 1,885,170 Unknown
corporation
FUND
Foreign
NORGES BANK 0.26% 1,660,562 579,100 0 1,660,562 Unknown
corporation
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The Abstract of the 2016 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
Shareholdings of top 10 non-restricted share holders
Number of non-restricted shares held Type of shares
Name of shareholder
at period-end Type Number
CHINA NANSHAN DEVELOPMENT (GROUP) INC. 209,687,067 A share 209,687,067
SHENZHEN MALAI STORAGE CO., LTD. 161,190,933 A share 161,190,933
KEEN FIELD ENTERPRISES LIMITED 55,314,208 B share 55,314,208
CMBLSA RE FTIF TEMPLETON ASIAN GRW FD GTI 5496 47,914,954 B share 47,914,954
ICBC－LION VALUE GROWTH STOCK FUND 2,698,775 A share 2,698,775
BBH A/C VANGUARD EMERGING MARKETS STOCK
2,617,518 B share 2,617,518
INDEX FUND
SHENWAN HONGYUAN SECURITIES (HK) LIMITED 2,511,586 B share 2,511,586
CHINA MERCHANTS SECURITIES (HK) CO., LTD. 2,451,059 B share 2,451,059
TEMPLETON ASIAN GROWTH FUND 1,885,170 B share 1,885,170
NORGES BANK 1,660,562 B share 1,660,562
China Merchants Port Holdings Company Limited (“CMPort”) is a
Related or acting-in-concert parties among the top ten shareholder of China Nanshan Development (Group) Inc., and Shenzhen
non-restrictedly tradable share holders and between the top ten Malai Storage Co., Ltd. and Keen Field Enterprises Limited are both
non-restrictedly tradable share holders and the top ten wholly-funded subsidiaries of CMPort. Other than that, the Company
shareholders does not know whether the other non-restricted shareholders are related
parties or not.
Top ten common shareholders conducting securities margin
N/A
trading (if any)
(2) Number of the preference shareholders and the shareholdings of the top 10 of them
□ Applicable √ Inapplicable
No preference shareholders in the reporting period
(3) Relationship between the Company and its actual controller in the form of diagram
State-Owned Assets Supervision and Administration Commission of the State Council
100%
China Merchants Group
54.78%
China Merchants Port Holdings
Entrusted to Company Limited
manage
32.52%
shares held 100% 100% 37.02%
by CND
Group
Malai Storage Keen Field Enterprises CND Group
25% 8.58% 32.52%
14.58% Public Share A
Shenzhen Chiwan Wharf Holdings Limited
19.32% Public Share B
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The Abstract of the 2016 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
5. Corporate bonds
□ Applicable √ Inapplicable
III. Performance discussion and analysis
Investors are kindly reminded to read the full text of this Report carefully and pay special attention to the
following risk factors:
Any forward-looking statement such as those involving future plans or development strategies 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.
Is the Company subject to any disclosure requirements for special industries?
No.
1. Business review for the reporting period
In 2016, the global economy remained in deep change which varied markedly among different regions. Profound
changes also happened with trade rules, production modes, industrial layout, international division of labor,
currency systems, etc. China steadily pushed forward its supply-side structural reform and transformation and
deepened its pilot free trade zone reform. Its economic growth further slowed down to 6.7%, with the total import
and export value down by 0.9% from last year. With continuously sluggish global shipping, the domestic port
industry also grew at a slow pace. The country’s coastal ports above the designated size registered a cargo
throughput of 8.08 billion metric tons, representing 3.0% growth from last year, and a container throughput of 190
million TEU, up 3.4% from the year earlier. Under such circumstances, main production and operation indicators
of the Company for the reporting period all registered increase. To be specific, the Company achieved a cargo
throughput of 67.8 million metric tons, a year-on-year increase of 1.8%, which generated operating revenues of
RMB1.91 billion, up 1.7% from last year; total profits of RMB0.77 billion, up 5.9% on a year-on-year basis; and
net profits attributable to the Company (excluding subsidiaries) of RMB0.53 billion, representing a 0.9% growth
from the year earlier.
(1) Container handling business
Growth in the global container capacity significantly slowed down, but overcapacity wasn’t substantively
improved. With lower earnings for shipping enterprises, the bankrupt of Hanjin Shipping, the 7th largest shipping
company in the world shocked the shipping industry. The shipping alliances were on the verge of a reshuffle due
to series of merging and reorganization events in the industry. In the reporting period, container throughput of
main ports in South China declined by 1.2% year on year, of which the data of Shenzhen port declined by 1.0%.
We strengthened business expansion, closely followed up the route adjustment caused by the alliance reshuffle,
energetically explored qualified routes, leading to growth in both local and transit container handling. We handled
5.035 million TEU of containers, up 5.8% 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 the government’s structural reform of the supply front, as well as the market demand, China’s imports of
grain and fertilizer both decreased sharply. We adopted a business strategy of working on both domestic and
foreign trade. As a result, the considerable growth in the domestic grain and feedstuff throughput made up for the
drop in the foreign counterpart, and our total grain and feedstuff throughput is still at a leading position in the
Pearl River Delta. Meanwhile, despite a weak demand, we are still a leader in terms of fertilizer throughput, with
the compound fertilizer imports handled accounting for around 50% of China’s market. At the same time, we
strengthened business expansion. Breakthroughs have been made in new business and the comprehensive logistics
services based on the ports have continued to develop, making clients more dependent on us. In the reporting
period, we achieved a bulk cargo throughput of 18.822 million tons, down 2.4% from the year earlier.
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The Abstract of the 2016 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
(3) Supporting services and investment management
Our supporting services of tow truck, tugboat, customs clearance, barge and the like went on smoothly, and
gained goods. Meanwhile, our main investees such as China Overseas Harbour Affairs (Laizhou) 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.
Business highlights of the Company for the past three years are set out as follows:
Main business indicator 2016 2015 2014
Total throughput (thousand tons) 67,800 66,618 63,002
Among which:
5,035 4,760 4,958
Container throughput (thousand TEU)
Bulk cargo throughput (thousand tons) 18,822 19,283 15,139
Hours charged for tow trucks (thousand hours) 1,165 1,129 1,170
Hours charged for tugboats (hour) 32,530 34,098 28,642
In the reporting period, we continued to push forward lean management and innovation work, and emphasized on
improving quality and efficiency. We adapted to the management requirements in new situations by sorting and
optimizing management process, as well as revising and perfecting systems. We combined theory training with
work practice, and strengthened the guiding function of data analysis. Through making use of interest
technologies, we carried forward the fusion of production network, and the Company’s informationization. We
encouraged technique and process reform, and new technology application, focused on solving and improving
issues in the front line of production, and accomplished multiple projects of technical innovation. We combined
the main wharf business with supporting businesses, arranged the participation in multiple logistics links, explored
and extended the logistics chain service in ports. We developed special management and control on key costs,
reached the annual target on management and control, and realized the increase of operating profits. We also
expanded financing channels for a better debt structure and reduced the loans to avoid exchange rate risk, which
helped cut down our finance costs in a significant way.
2. Outlook of the Company’s future development
(1) Outlook and trends of the industry
2017 is expected to continue to see a complicated and serious situation in the global economy as well as a slow
development pace in global shipping, which wouldn’t be changed in a short term. The economy of traditional
industry will be in the passage of reducing excess production capacity in a long term. The fast growth of port
throughput slowed down to intermediate, even unit-digit speed, representing a situation where the net growth of
throughput and annual average growth speed both declined. The development of China’s port industry will
transfer from obtaining benefits by relying on the bonus brought by economy development to obtaining benefits
by improving quality and efficiency, as well as building high-end value chain by itself. The excess production
capacity will intensify regional competitions, making mutual benefit and win-win result caused by leveraging
resource integration becomes the general trend.
In terms of container handling, container throughput in the Pearl River Delta is expected to remain stable. Larger
ships and shipping alliances have made clients more centralized. The adjustment of regional industry layout, as
well as the rapid development of cross-border E-commerce put forward higher requirements to container ports.
The risk of business fluctuation will aggravate. The industry position and business scale of the Company, the
regional hub port, will keep steady.
As for bulk cargo handling, regional demand for grain and feedstuff keeps growing, and the demand for fertilizer
keeps stable. In future, with the improvement of resource capability of bulk cargo handling, the development of
bonded and transit businesses, and the cultivation of new supply of good and new business forms, the overall
market competitiveness will continuously get enhanced. Throughput of our bulk cargo handling business will
expectedly keep stable growing, constantly occupying the leading position in regional market.
(2) Development strategy
During the 13th Five-Year Plan period, focusing on the strategy vision of “Building the Regional 1st Level’s Port
Integrated Servicer”, With our strategic standard of development being “Based on Main Business of Port Service,
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The Abstract of the 2016 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
Be a Local Standard; Expand Comprehensive Service for Business Upgrade”, we strive to build a company
featuring excellent management, great efficiency, potential for sustained development and the ability to create
constant value for its shareholders, employees, clients and the society.
In the reporting period, we researched and formulated the implementation schemes for our strategic planning. In
future, we will intensively farm on the area on the basis of main businesses, fully take advantage of the internet
tools to exert ourselves to develop port investment and operation business, port integrated development business,
and port extending service business. We’ll put forth effort on improving our ability of lean management, driving
innovation, resource integration, organization establishment, as well as risk management.
(3) Business plans for 2017
In face of the complex and changeable market in 2017, we will adhere to the guideline of “Aiming at development
through Real Practice and Solid Work, Creating 1st Class Company on the basis of Main businesses” and
vigorously respond to challenges so as to achieve sound growth in our business results and profits. Our main
business plans are as follows:
1) To know well about the market situation, and ensure business growth in size
In order for a steady growth in our business scale, we will actively deal with changes in the shipping market and
industry trends, keep up-and-coming commercial strategies, solidify and increase our local market position, as
well as continue to expand and extend integrated services based on the main port business, and enhance
customer’s stickiness
2) To optimize resource allocation and improve resource utilization rate
We’ll positively carry forward the 270-meter broadening and dredging project for Tonggu sea route, improve the
hardware conditions for shipping, launch the transformation of Berth 5-6# , Chiwan Port, and keep propelling the
reformation of the storage yard in ports. The Bulk grain warehouses Phase II, Machong Port will be accomplished
and put into operation, and the construction of the Bulk grain warehouses Phase III., together with other
supporting facilities, will be accelerated. We’ll reinforce the optimization and utilization of the existing stock of
resources, and improve the resources utilization in full aspects.
3) To enhance lean management and innovation to improve quality and efficiency for internal management
Lean management and innovation will be pushed forward in the form of projects. We’ll impel and implement the
informatization construction plan to improve the port management efficiency. We’ll strength establishing
institutions and the personnel, perfect risk management and control system, and ensure our standard operation.
We’ll specially carry forward management and control on key costs in multiple dimensions, and execute
long-acting tracking. We’ll encourage technology transformation and innovation aiming at providing practical
production solutions to give expression to the values of innovation.
4) To look for investment and cooperation opportunities to push forward our leaping development
We will keep looking for regional opportunities for resource integration and business expansion, and make use of
our financing platform and brand advantage, so as to further perfect and enlarge our business layout and achieve
business synergistic effect. And at the same time, we’ll propel strategic cooperation to lock in qualified customers,
so that our integrated competitiveness can be improved.
(4) Capital needs and expenditure plan for 2017
To implement our future development strategies and achieve the business goals we have set, a capital expenditure
of RMB537.60 million is planned for 2017, of which RMB407.70 million will be invested in wharfs and
warehouses, RMB79.19 million in mechanical equipment and technical improvement projects, RMB43.46 million
in computer projects and RMB7.25 million in administration and other. The said capital expenditures will be
mainly funded by cash inflows from operating activities of the Company and borrowings from interbank markets
and financial institutions.
3. Significant changes in the main business in the reporting period
□ Yes √ No
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The Abstract of the 2016 Annual Report of Shenzhen Chiwan Wharf Holdings Limited
4. Products contributing over 10% of the main business revenue or profit
□ Applicable √ Inapplicable
5. Seasonal or periodic characteristics in the operating performance that need special attention
□ Yes √ No
6. Significant YoY changes in the operating revenues, operating costs and net profits attributable to the
common shareholders or their composition
□ Applicable √ Inapplicable
7. Listing suspension or termination
□ Applicable √ Inapplicable
8. Issues related to the financial report
(1) YoY changes in the accounting policy, accounting estimation and measurement methods
□ Applicable √ Inapplicable
No changes
(2) Retrospective restatements due to correction of significant accounting errors in the reporting period
□ Applicable √ Inapplicable
No such cases
(3) YoY changes in the consolidation scope
□ Applicable √ Inapplicable
No changes
For and on behalf of the Board
Shi Wei
Chairman
Shenzhen Chiwan Wharf Holdings Limited
Dated 28 March 2017
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