SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO LTD
The Interim Report of 2009
August 20091
Contents
I. Important Notice ...............................................................................................................................2
II. Corporate Information .....................................................................................................................3
III. Changes in Capital Stock and Shares Held by Principal Shareholders...........................................5
IV. Directors, Supervisors and Senior Management.............................................................................6
V. The Report of the Board of Directors...............................................................................................6
VI. Significant Events ..........................................................................................................................9
VII. Financial Report
（
unaudited).....................................................................................................12
VIII. Documents Available for Verification........................................................................................122
I. Important Notice
1.1 The Board of Directors, the Board of Supervisors, directors, supervisors and senior management
of the Company confirm that there are no false representations, misleading statements or material
omissions contained herein, and individually and/or jointly take full responsibility for the
truthfulness, accuracy and completeness of the contents of this report.
1.2 All directors, supervisors and senior management ensure the truthfulness, accuracy and
completeness of the contents of this report.
1.3 All directors attended the board meeting.
1.4 The Company’s 2009 interim financial report has not been audited.
1.5 Mr. Han Guimao, Chairman of the Board, Ms. Yu Zhongxia, the Assistant Financial Controller
and Mr. Zeng Xiaoming, Manager of Finance Department, hereby ensure the truthfulness and
completeness of the financial report enclosed in this interim report.3
II. Corporate Information
2.1 Company Profile
1. Registered Corporate Name in Chinese:
深圳赤湾石油基地股份有限公司
Registered Corporate Name in English:
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD
2. Stock Exchange Listed with: Shenzhen Stock Exchange
Abbreviated Name of Stock: Chiwan Base B
Stock Code: 200053
3. Registered Address
：
Chiwan, Shenzhen, Guangdong Province, PRC
Office Address: 14/F, Chiwan Petroleum Building, Shenzhen, PRC
Post Code: 518068
4. Legal Representative: Han Guimao
5. Secretary of the Board of Directors: Fu Jialin
Securities Representative: Song Tao
Tel: 0755-26694211
Fax: 0755-26694227
Mailing Address: 14/F, Chiwan Petroleum Building, Shenzhen, PRC
E-mail: sa@chiwanbase.com
Website: http://www.chiwanbase.com
6. Newspaper Designated for Information Disclosure: Securities Times, Wen Wei Po
Website Designated for Information Disclosure: http://www.cninfo.com.cn
Interim Report available at 14/F, Chiwan Petroleum Building, Shenzhen, PRC
7. Other Information
Initial Registration Date: 24 July, 1995
Business License No.: 440301501124066
Taxation Registration No.:
Di Shui Deng Zi 40305618833899
Guo Shui Deng Zi 403016188338994
2.2 Financial Highlights
2.2.1 Major Accounting Data and Financial Index
Unit: RMB
End of Report
Period
End of the Previous
Period (the end of
2008)
Period-on-Period
Increase/Decrease
(%)
Total Assets 2,384,540,045.57 2,269,548,271.28 5.07%
Total Shareholders’ Equity Attributed to the
Shareholders of Parent Company
900,137,037.25 886,063,910.86 1.59%
Capital Stock 230,600,000.00 230,600,000.00 0.00%
Net Assets per Share Attributed to the
Shareholders of Parent Company (Yuan/per
share)
3.90 3.84 1.56%
Report Period (Jan
to June, 2009)
Same Period of
Previous Year
Increase/Decrease
over the Same
Period
Total Operating Revenue 150,860,758.68 137,572,141.28 9.66%
Operating Profit 59,644,557.50 29,024,403.30 105.50%
Total Profit 59,607,367.10 28,068,915.73 112.36%
Net Profit Attributed to the Shareholders of
Parent Company
53,909,842.23 23,136,050.89 133.01%
Net Profit after Deducted of Non-recurring
Gain/Loss Attributed to the Parent Company
53,931,277.74 23,953,034.00 125.15%
Basic Earnings per Share (Yuan/per share) 0.23 0.10 130.00%
Diluted Earnings per Share (Yuan/per share) 0.23 0.10 130.00%
ROE
（
%
）
5.99% 2.78% +3.21 percent
Net Cash Flow from Operation Activities 96,476,059.26 127,394,362.23 -24.27%
Net Cash Flow per Share from Operation
Business (Yuan/per share)
0.42 0.55 -23.64%
2.2.2 Items of Non-recurring Gain/Loss
Unit: RMB
Items of Non-recurring Losses and Gains Amount
Losses and Gains on Disposal of Non-current Assets 24,728.59
Government subsidy accounted as current losses and gains,
excluding those closely related to the company's operation
businesses, granted on a continuous basis according to a
preset amount or quantity standards persistent to the state
policy.
47,000.00
Other non-operating income and expenditure, excluding
above-mentioned items
-108,918.99
Amount affected by income tax 15,754.89
Total -21,435.51
In accordance with relative regulations, the Company has implemented new Accounting Standards
for Business Enterprise since 1st Jan, 2007. The financial report is no longer compiled on the basis
of International Accounting Standards.5
III. Changes in Capital Stock and Shares Held by Principal
Shareholders
3.1 There are no changes of capital stock, controlling shareholders and actual controllers.
3.2 The top ten shareholders and top ten tradable shareholders are listed as follows:
Total No. of Shareholders 8,515
Information of Top Ten Shareholders
Names of Shareholders Type of Shareholders
Ratio
（％）
Shares Held
at the end of
the period
Numbers of
non-tradable
shares
Shares of
Pledged or
Frozen
CHINA NANSHAN
DEVELOPMENT (GROUP)
INCORPORATION
Domestic Legal Entity
51.79 119,420,000 119,420,000 0 OFFSHORE JOINT SERVICES
(BASES) CO. OF SGP. PTE
LTD
Foreign Investment
Shareholder 22.19 51,180,000 0 0 CHINA MERCHANTS
SECURITIES(HK) CO., LTD
Others
0.78 1,796,293 0
Unknown
GUOTAI JUNAN
SECURIES(HONGKONG)
LIMITED
Others
0.59 1,361,325 0
Unknown
SUN LIFENG Others
0.29 676,870 0
Unknown
OU YANPING Others
0.27 613,613 Unknown
WU CHI LI Others
0.22 508,000 0
Unknown
MORGAN STANLEY
&CO.INTERNATIONAL PLC
Others
0.20 450,100 0
Unknown
CHEN WEN Others
0.17 382,500 0
Unknown
CHEN CHUNPENG Others
0.15 345,400 Unknown
Information of Top Ten Tradable Shareholders
Names of Shareholders
Shares Held at the end of
the period
Type of Shares
OFFSHORE JOINT SERVICES (BASES) CO.
OF SGP. PTE LTD 51,180,000
B
CHINA MERCHANTS SECURITIES(HK)
CO., LTD
1,796,293
B
GUOTAI JUNAN SECURIES(HONGKONG)
LIMITED 1,361,325
B
SUN LIFENG
676,870
B
OU YANPING
613,613
B
WU CHI LI
508,000
B
MORGAN STANLEY&CO.
INTERNATIONAL PLC 450,100
B
CHEN WEN
382,500
B
CHEN CHUNPENG
345,400
B
PAN BO
338,900
B
Explanation for the Affiliated Relations or
United Action of the Above-mentioned
Shareholders
Among the top ten shareholders, the domestic legal entity
shareholder, China Nanshan Development (Group)
Incorporation has no affiliated relations with other shareholders
and does not fall into the scope of united action person
stipulated by “Regulation of Information Disclosure of the
Change of Shareholding of listed company. It is unknown that
whether other tradable shareholders fall into the scope of united
action person.6
IV. Directors, Supervisors and Senior Management
4.1 The Changes of Shares Held by Directors, Supervisors and Senior Management
(at the end of 30th June, 2009)
Some of the directors, supervisors and senior management used their own fund to purchase the
Company’s shares during 10 February to 20 March, 2009. The details are as follows:
Name
Original
Shares Held
Date of Purchase
Number of
Shares
Purchase
Purchase Way
Share Held
by Now
Cui Wei
- 2009.2.10-2009.3.20 97,000
Own Fund,
Secondary
Market
97,000 Ren
Yongping 10000 2009.2.10-2009.3.20 65,900
Own Fund,
Secondary
Market
75,900 Huang
Donger - 2009.2.10-2009.3.20 63,700
Own Fund,
Secondary
Market
63,700 Fu Jialin
- 2009.2.10-2009.3.20 45,100
Own Fund,
Secondary
Market
45,100 Liu Wei
- 2009.2.10-2009.3.20 34,800
Own Fund,
Secondary
Market
34,800
4.2 The Changes of Directors, Supervisors and Senior Management
The 2008 Annual General Meeting convened on 15th May, 2009 reviewed and approved the
resolution on appointing Mr. Ren Yongping as the Director of the fifth Board of Directors.
There are no new appointment and dismission of other directors, supervisors and senior
management.
V. The Report of the Board of Directors
5.1 Business Scope and Brief Information
5.1.1 Business scopes of the Company are providing logistics services for the petroleum
exploration, development and operation in South China Sea, providing services of logistics parks by
holding subsidiaries and manufacture and maintenance services of offshore engineering by joint
stock companies.
In the first half year of 2009, the Company achieved operating revenue of RMB 150.86 million,
a year-on-year increase of 10%; the net profit attributed to the shareholders of parent company was
RMB 53.91 million with a year-on-year increase of 133%.
5.1.2 The increase of the Company’s net profit was caused by the following reasons:
5.1.2.1 Business operation in CSE got better in 2009 compared with the same period of last
year, leading to a sharp increase of investment income. The investment income in the first half year
of 2009 was RMB 9.85 million, representing an increase of RMB 17.49 million over the same period
of last year.7
5.1.2.2 The Company strengthened cost control and decreased the cost of financing. The
financial expenses in the first half year of 2009 reached RMB 18.24 million with a decrease of
13.86% over the same period of last year. The management expenses in the first half year of 2009
were RMB 23.24 million, representing a decrease of 19.37% over the same period.
5.1.2.3 Kunshan Baowan International Logistics Co., Ltd. began to put into use from April
2008. In the first half year of 2009, it achieved net profit of RMB 2.45 million deducted of financial
expenses with an increase of RMB 4.40 million.
5.1.2.4 In the first half year of 2009, Shanghai Baowan International Logistics Co., Ltd.
achieved net profit of RMB 21.07 million deducted of financial expenses, with an increase of RMB
3.74 million or 21.6% because of the operation of 16# warehouse and good expenses control.
5.2. Segment Operation Results
5.2.1 Offshore Petroleum Logistic Services
In the first half year of 2009, the petroleum logistics supply division achieved operating
revenue of RMB 92.03 million and net profit of RMB 42.15 million, with an increase of 1%
respectively.
5.2.2 Baowan Logistics Service:
Shenzhen Baowan achieved operating revenue of RMB 8.84 million with a decrease of 6% and
net profit of RMB 2.19 million with an increase of 12% in the first half year of 2009
Shanghai Baowan realized operating revenue of RMB 35.36 million and net profit of RMB
21.07 million deducted of financial expenses, with an increase of 8% and 22% respectively in the
first half year of 2009.
Guangzhou Baowan achieved operating revenue of RMB 3.30 million and net profit of RMB
0.49 million in the first half year of 2009.
Kunshan Baowan achieved operating revenue of RMB 10.66 million and net profit of RMB
2.46 million deducted of financial expenses in the first half year of 2009.
Chengdu Xindu Baowan realized revenue of RMB 0.67 million in the first half year of 2009.
By the end of second quarter, there was one warehouse put into use and the rest of the warehouses
were under acceptance inspection.
5.2.3 Offshore Oil Engineering
5.2.3.1 Chiwan Sembawang Engineering (CSE)
In the first half year of 2009, CSE achieved net profit of RMB 30.78 million with an increase of
RMB 54.67 million, which included investment income of RMB 33.85 million from Penglai Jutal
and net loss after tax of RMB 3.07 million for Chiwan Yard. CSE contributed investment income of
RMB 9.85 million to the Company. The reasons for the increase of CSE’s business were as follows:
(1) The efforts of the budget control were effective, leading to cost saving. (2) The business
operation in Penglai got better, bringing an increase of investment income of RMB 17.60 million
compared with the same period of last year.
5.2.3.2 Chiwan Offshore Petroleum Equipment Repair & Manufacture Co (CPEC)
In the first half year of 2009, CPEC achieved net profit of RMB 2.40 million with an increase
of RMB 1.86 million over the same period of last year, which contributed investment income of8
RMB 0.48 million to the Company.
Classification of Operating Revenue of Core Business
Unit: RMB ’0000
Sectors or Products
Operating
Revenue
Operating
Cost
Gross Profit
Rate
（
%
）
Increase of
Operating
Revenue over
the Same
Period of Last
Year
（
%
）
Increase of
Operating
Cost over the
Same Period
of Last Year
（
%
）
Increase of
Gross Profit
over the Same
Period of Last
Year
（
%
）
Loading and
Unloading, Harbor
Management
4,887.40 1,542.48 68.44% 0.19% 24.00% -8.13%
Warehouse and
Storage
9,162.21 3,519.22 61.59% 15.64% 17.97% -1.22%
Office Leasing 1,036.47 248.86 75.99% 8.40% -13.15% 8.51%
Note: The amount of connected transactions related to sales and services to holding shareholders and
subsidiaries is RMB 3.11 million.
Classification of Operating Revenue of Region
Unit: RMB ’0000
Region Revenue of Core Business
Increase of Core Business Revenue over the
Same Period of Last Year
（％）
Shenzhen 10,087.63 0.44%
Guangzhou 329.72 5.12%
Shanghai 3,535.67 7.79%
Kunshan 1,066.14 790.13%
Chengdu 66.92 -
Note: Chengdu Xindu Baowan began to put into use in the second quarter of year 2009.
5.3. Management Plans, Risks and Countermeasures in the Second Half Year
The business of offshore petroleum logistic service and Baowan logistics parks is expected to
develop steadily in the second half year. The business of CSE still seems to be uncertain in the next
half year. Investors would be aware of the risk.
Tianjin Baowan is planned to have finished construction and put into use in August, 2009. The
project of Chengdu Xindu Baowan has been completed and is conducting the inspection and
acceptance work. The projects of Nanjing Baowan and Chengdu Longquan Baowan are planned to
begin construction in the second half year. The construction of Langfang Baowan will be determined
by the preparations.
The Company will focus on marketing of Tianjin Baowan, Chengdu Xindu Baowan and
Kunshan Baowan in the second half year. The construction costs of Tianjin Baowan, Chengdu Xindu
Baowan, Nanjing Baowan and Chengdu Longquan Baowan have resulted financial pressure further.
Therefore the Company plans to increase the ratio of mid-term and long-term loans to optimize the
credit structure and minimize financial risks.
5.4. There was no fund raised or use of fund raised in the report period.9
VI. Significant Events
6.1 Corporate Governance
During the reported period, the Company had observed Company Law, Securities Law,
Guidelines of Corporate Governance for Listed Company and relevant regulations to improve and
enhance corporate governance.
On 15th May, 2009, 2008 Annual General Meeting reviewed and approved the resolution on the
amendment to the Articles of Association of the Company (details on Securities Times, Wen Wei Po
and http://www.cninfo.com.cn with announcement No. 2009-01 on 21st April, 2009) to further
improve corporate governance.
In accordance with the requirements issued by the CSRC, the Company will carry out
comprehensive campaigns on corporate governance, leading to more standard operation, enhance the
awareness of risk control, improve its corporate governance and ensure the interests of shareholders.
6.2 Dividends Distribution Scheme for the year 2008
The resolution on the dividend distribution scheme for the year 2008 was approved by the 2008
Annual General Meeting convened on 15 May, 2009, where the cash dividend of RMB1.72 was
distributed for every 10 shares based on total capital stock of 230.6 million shares with total amount
of RMB 39.66 million. By the end of the report period, the scheme had been implemented. The
details were published on Securities Times, Wen Wei Po and website of http://www.cninfo.com.cn
with the announcement NO. 2009-11 on 4th July, 2009.
Neither profit would be distributed nor would capital surplus be transferred into share capital in
the semi-annual 2009.
6.3 There is no material litigation or arbitration in the report period.
6.4 There is no major asset acquisition, disposal or reorganization in the report
period.
6.5 Significant Connected Transactions
6.5.1 Connected Transactions Related to Daily Operation
The above-mentioned connected transactions were reviewed and approved on the six session
of the fifth Board of Directors. The details were published on Securities Times, Wen Wei Po and
website of http://www.cninfo.com.cn with the announcement NO. 2009-07 on 21st April, 2009.
Connected
Party
Relations Contents
Pricing
Principle
Amount in the
Report Period
(RMB ’0000)
Ratio
(%)
Amount in the
Pervious Period
(RMB ’0000)
Settlement
Method
Nanshan
Group
Holding
Shareholders
Office
Leasing
Negotiation 213.71 25.10% 187.04 Currency
CWH
Subsidiary
of Holding
Shareholders
Office
Leasing
Negotiation 98.06 11.52% 89.59 Currency
Nanshan
Group
Holding
Shareholders
Leasing of
Land and
Buildings
Negotiation 218.43 88.83% 191.01 Currency10
6.5.2 The resolution on the connected transactions of wall panels for Longquan and Nanjing
projects was approved by the 2008 Annual General Meeting convened on 15th May, 2009 with the
contract amount of RMB 43.27 million.(Details on Securities Times, Wen Wei Po and
http://www.cninfo.com.cn with Announcement No. 2009-06 on 21st April, 2009)
6.6 2008 Annual General Meeting convened on 15th May, 2009 reviewed and approved the
resolution on the changes of construction cost and their impact on operation for Tianjin, Xindu,
Longquan and Nanjing Projects, with the total additional budget of RMB 275 million, which
included additional budget of RMB 93 million for Tianjin project, RMB 98 million for Chengdu
Longquan project, RMB 24 million for Chengdu Xindu project and RMB 60 million for Nanjing
project. (Details on Securities Times, Wen Wei Po and http://www.cninfo.com.cn with the
Announcement No. 2009-05 on 21st April, 2009)
6.7 In the report period, the Company had never kept as custodian, contracted or
leased any other company’s assets and vice versa.
6.8 Special Explanation and Independent Opinions from Independent Directors on
the Fund Occupancy by the Connected Parties and External Guarantee.
According to the Notice on Regulating the Fund Dealings between a Listed Company and its
Connected Parties and Several Issues Concerning External Guarantee Offered by Listed Companies
(ZHENG JIAN FA
〔
2003
〕
No. 56) and the Notice on Reinforcing Information Disclosure of Fund
Occupancy and Illegal Guarantee for Listed Companies (SHEN ZHENG JU FA (2004) 338), we
inspected the external guarantee and fund occupancy from connected parties. We, as the independent
directors of Shenzhen Chiwan Petroleum Supply Base Co., Ltd, hereby present the special
explanation and independent opinions on the fund occupancy by the connected parties and external
guarantee as follows:
In the report period, the fund dealings between the Company and its connected parties were
normal financial payments. There was no guarantee for the holding shareholders, the Company’s
subsidiaries and other companies, or illegal fund occupancy.
6.9 In the report period, the Company or shareholders with more than 5% shares
(including 5%) did not engage in any commitment that might have substantial
impact on the operation results and financial position.
6.10 By the end of 30th June, 2009, the Company’s interests-bearing loan is RMB
870 million.
6.11 The Scope of Consolidated Financial Statements:
Shenzhen Chiwan Petroleum Supply Base Co., Ltd
Shenzhen Chiwan Petroleum Supply Base Co., Ltd (Shanghai Branch)
Subsidiaries: Shenzhen Baowan International Logistics Co., Ltd.
Shanghai Baowan International Logistics Co., Ltd.
Guangzhou Baowan Logistics Co.
，
Ltd
Tianjin Baowan International Logistics Co., Ltd.11
Langfang Baowan International Logistics Co., Ltd.
Kunshan Baowan International Logistics Co., Ltd.
Chengdu Xindu Baowan International Logistics Co., Ltd.
Chengdu Longquan Baowan International Logistics Co., Ltd.
Wuhan Baowan International Logistics Co., Ltd.
Shenyang Baowan International Logistics Co., Ltd.
Nanjing Baowan International Logistics Co., Ltd.
6.12 Reception of Investors and Medias
In the report period, implementing the Guidelines of Fair Information Disclosure for Listed
Companies and Regulations of Investors Relation Management, the Company strictly observed the
principles of fair information disclosure to ensure the objectiveness, authenticity and completeness
of the information and had never been engaged in any activity of revealing, disclosing or letting out
in advance any private information. The Company had received many telephone enquiries but no
investors asking on-site investigation or written enquiries.
6.13 In the report period, the Company did not invest any securities.
6.14 In the report period, the Company did not hold any stock of unlisted
companies or of proposed listed companies.
6.15 In the report period, the Company did not change certificated public
accountants.
6.16 In the report period, the Board of the Company and its directors did not
receive any investigation, administrative punishment, or circulate a notice of
criticism by CSRC or other administrative departments, nor public condemnation.
6.17 Index of Announcement Disclosed in the Report Period:
Disclosure Date Announcement Media for Disclosure
21st April, 2009
Announcement of Resolutions on the Six
Session of the Fifth Board of Directors
Securities Times
Wen Wei Po
http://www.cninfo.com.cn
21st April, 2009
Announcement of Resolutions on the Six
Session of the Fifth Board of Supervisors
Securities Times
Wen Wei Po
http://www.cninfo.com.cn
21st April, 2009
Annual Report for the Year 2008 and its
Abstract
Securities Times
Wen Wei Po
http://www.cninfo.com.cn
21st April, 2009
Announcement of Correction on Prior
Period Errors in Financial Report
Securities Times
Wen Wei Po
http://www.cninfo.com.cn
21st April, 2009
Announcement on Significant Events
( Additional Budgets for Tianjin, Chengdu
Longquan, Chengdu Xindu and Nanjing
Projects)
Securities Times
Wen Wei Po
http://www.cninfo.com.cn
21st April, 2009
Announcement on Connected Transactions Securities Times12
( Contracts of Wall Panels for Chengdu
Longquan and Nanjing Projects)
Wen Wei Po
http://www.cninfo.com.cn
21st April, 2009
Announcement on Connected Transactions
Related to Daily Operation for the Year
2009
Securities Times
Wen Wei Po
http://www.cninfo.com.cn
21st April, 2009
Notice of 2008 Annual General Meeting
Securities Times
Wen Wei Po
http://www.cninfo.com.cn
21st April, 2009
1st Quarterly Report for the Year 2009
Securities Times
Wen Wei Po
http://www.cninfo.com.cn
16th May, 2009
Announcement of the Resolutions on 2008
Annual General Meeting
Securities Times
Wen Wei Po
http://www.cninfo.com.cn
6.18 There are no other significant events should be disclosed.
VII. Financial Report （unaudited)
7.1 The interim financial report (unaudited)
7.2 Accounting Statements and Notes (attached behind)
VIII. Documents Available for Verification
8.1 Interim Report singed by and under the seal of Chairman of the Board.
8.2 Financial Report signed by and under the seal of Chairman of the Board, Financial Controller
and Manager of Finance Department.
8.3 All documents and announcements disclosed in the newspaper designated by China Security
Regulatory Commission during the report period.
8.4 Articles of Association of the Company
8.5 Other relevant documents.
Chairman： Mr. Han Guimao
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD
21st August, 200913
Balance Sheet
Unit: RMB
Jun 30,2009 Jan 1 ,2009
Items
Consolidated Parent company Consolidated Parent company
Current assets:
Cash and cash equivalents 72,048,097.19 60,194,326.03 131,387,928.04 80,240,914.36
Notes receivable
Accounts receivable 55,172,035.27 44,675,795.36 30,058,340.97 18,180,431.33
Prepayments in advance 1,720,002.05 647,298.10 1,253,214.62 666,692.87
Interest receivable
Dividend receivable 37,260,777.76 37,260,777.76
Other receivable 6,041,172.93 518,315,659.13 4,101,625.86 383,229,928.01
Inventories 1,273,603.22 1,162,002.77 1,426,789.13 1,292,411.92
Non-current asset due in 1 year
Other current assets
Total current assets 136,254,910.66 662,255,859.15 168,227,898.62 520,871,156.25
Non-current assets:
Long-term accounts receivable
Long-term share equity investment 289,371,477.54 813,525,249.67 279,739,030.03 803,892,802.16
Investment Property 514,868,443.66 117,113,888.94 479,508,264.36 96,941,237.80
Fixed assets 151,818,557.46 47,712,210.81 146,384,412.87 44,629,869.67
Construction in progress 427,457,011.57 3,190,725.76 339,240,607.25 29,866,123.04
Construction material
Disposal of fixed assets 990.40
Intangible assets: 433,226,678.57 20,372,682.62 412,695,502.70 27,390,042.79
Development expenditures
Goodwill
Long-term expenses to be
amortized
Deferred income tax assets 2,796,005.65 36,963.88 2,796,005.65 36,963.88
Other non-current assets: 428,745,970.06 381,154,260.00 440,956,549.80 381,154,260.00
Total non-current assets: 2,248,285,134.91 1,383,105,981.68 2,101,320,372.66 1,383,911,299.34
Total assets: 2,384,540,045.57 2,045,361,840.83 2,269,548,271.28 1,904,782,455.59
Current liabilities:
Short-term loans 870,000,000.00 870,000,000.00 855,000,000.00 855,000,000.00
Notes payable 21,362,055.30 21,362,055.30
Account payable 957,866.13 656,032.67 1,311,094.09 1,039,045.63
Received in advance 12,000.00 390,724.80
Employees’ wage payable 10,820,181.95 9,323,699.76 15,252,748.28 13,787,725.01
Tax payable 8,013,413.77 5,626,872.50 11,772,839.61 9,547,357.13
Interest payable 1,195,047.67 1,195,047.67 1,419,943.75 1,419,943.75
Others payables 39,836,715.84 39,836,715.84
Non-current liability due in 1 year
Other current liabilities
Total current liabilities 1,344,293,954.35 1,211,772,533.38 1,243,202,433.52 1,065,885,368.73
Non-current liabilities:14
Long-term loans
Long-term account payable 2,000,000.00
Special payable
Deferred income tax liability
Other non-current liabilities 27,626,126.82 26,487,692.04 27,577,121.24 27,577,121.24
Total non-current liabilities 29,626,126.82 26,487,692.04 27,577,121.24 27,577,121.24
Total liabilities 1,373,920,081.17 1,238,260,225.42 1,270,779,554.76 1,093,462,489.97
Shareholders’ equity
Share capital 230,600,000.00 230,600,000.00 230,600,000.00 230,600,000.00
Capital reserves 220,640,584.58 208,453,861.91 220,640,584.58 208,453,861.91
Less : Treasury Stock
Surplus reserves 184,522,601.92 184,522,601.92 180,538,930.34 180,538,930.34
undistributed profits 264,373,850.75 183,525,151.58 254,284,395.94 191,727,173.37
Difference for foreign currency
translation
Total shareholders’ equity
attributable to the parent company
900,137,037.25 807,101,615.41 886,063,910.86 811,319,965.62
Minority 110,482,927.15 112,704,805.66
Total shareholders’ equity 1,010,619,964.40 807,101,615.41 998,768,716.52 811,319,965.62
Total Liabilities and Equities 2,384,540,045.57 2,045,361,840.83 2,269,548,271.28 1,904,782,455.5915
Income Statements (from Jan 1 to Jun 30)
Unit: RMB
Jan 1-Jun 30,2009 Jan 1-Jun 30,,2008
Items
Consolidated Parent company Consolidated Parent company
I. Total business revenue 150,860,758.68 92,032,895.29 137,572,141.28 90,994,487.70
Incl. Business revenue 150,860,758.68 92,032,895.29 137,572,141.28 90,994,487.70
Interest income
II. Total business cost 101,548,648.69 60,373,563.32 101,376,680.97 70,446,866.30
Incl. Business cost 53,105,588.64 30,182,493.84 45,136,003.67 27,530,917.96
Interest cost
Business tax and surcharge 6,956,437.29 3,797,898.62 6,232,696.73 3,831,771.12
Sales expense
Administrative expense 23,241,532.55 14,799,497.00 28,826,012.50 18,305,099.56
Financial expense 18,245,090.21 11,593,673.86 21,181,968.07 20,779,077.66
Plus: Gains from change of
fair value (“-” for loss)
Investment income (“-” for
loss)
10,332,447.51 10,332,447.51 -7,171,057.01 -7,171,057.01
Incl. Investment income
from affiliates
10,332,447.51 10,332,447.51 -7,271,057.21 -7,271,057.21
Exchange gains(“-” for loss)
III. Operational profit (“-” for
loss
59,644,557.50 41,991,779.48 29,024,403.30 13,376,564.39
Plus: Non-operating income 113,597.53 45,699.00 23,683.60 15,714.00
Less: Non-operating
expenditure
150,787.93 97,501.41 979,171.17 790,101.03
Incl. Loss from disposal of
non-current assets
5,871.41 5,871.41 255,270.91 254,320.91
IV. Gross profit (“-” for loss) 59,607,367.10 41,939,977.07 28,068,915.73 12,602,177.36
Less: Income tax expenses 7,919,403.38 6,321,611.44 4,932,864.84 3,580,182.24
V. Net profit (“-” for net loss) 51,687,963.72 35,618,365.63 23,136,050.89 9,021,995.12
Net profit attributable to the
owners of parent company
53,909,842.23 35,618,365.63 23,136,050.89 9,021,995.12
Minor shareholders’ equity -2,221,878.51
VI. Earnings per share:
：
(I) Basic earnings per share 0.23 0.15 0.10 0.04
(II) Diluted earnings per
share
0.23 0.15 0.10 0.0416
Cash Flow Statements
Unit: RMB
Jan 1-Jun 30,2009 Jan 1- Jun 30,2008
Items
Consolidated Parent company Consolidated
I. Net cash flow from
business operation
Cash received from sales
of products & providing of
services
128,876,274.87 68,377,118.66 128,244,090.14 82,479,025.37
Received tax return 10,367.24
Other cash received for
business activities
43,262,561.79 81,048,669.17 63,776,324.85 20,620,825.24
Sub-total of cash inflow
from business activities
172,149,203.90 149,425,787.83 192,020,414.99 103,099,850.61
Cash paid for
purchasing of merchandise
and services
16,908,455.23 11,341,353.98 15,073,984.29 11,160,826.01
Cash paid to or for
staffs
23,196,166.66 16,934,661.05 19,486,821.87 14,174,188.83
Taxes paid 26,607,839.87 17,342,687.18 20,658,685.12 15,635,236.29
Other cash paid for
business activities
8,960,682.88 8,371,884.13 9,406,561.48 6,881,253.08
Sub-total of cash
outflow from business
activities
75,673,144.64 53,990,586.34 64,626,052.76 47,851,504.21
Net cash flow from
business operation
96,476,059.26 95,435,201.49 127,394,362.23 55,248,346.40
II. Cash flow from investing
Cash received from
disposal of investments
30,100,000.20 30,100,000.20
Cash received from
investments income
700,000.00 700,000.00
Net cash received from
disposal of fixed assets,
intangible assets, and other
long-term assets
2,227.82 2,227.82 30,770.00 22,000.00
Net cash received from
disposal of subsidiaries and
other operational units
Other cash received for
investment activities
2,000,000.00
Sub-total of cash inflow
due to investment activities
2,702,227.82 702,227.82 30,130,770.20 30,122,000.20
Cash paid for
construction of fixed assets,
intangible assets and other
long-term assets
149,768,685.76 147,434,450.68 120,776,834.27 116,146,322.6917
Cash paid for investment 50,000,000.00
Net cash paid for getting
subsidiaries and other
operational units
Other cash paid for
investment activities
Sub-total of cash outflow
from investment activities
149,768,685.76 147,434,450.68 120,776,834.27 166,146,322.69
Net cash flow from
investment
-147,066,457.94 -146,732,222.86 -90,646,064.07 -136,024,322.49
III. Cash flow from
financing
Cash received from
investment
Incl. Cash received
from minor shareholders
Cash received from
loans
140,000,000.00 180,000,000.00 175,000,000.00 288,700,000.00
Other cash received fro
m financing activities
Sub-total of cash inflow
from financing activities
140,000,000.00 180,000,000.00 175,000,000.00 288,700,000.00
Repayment for debts 125,000,000.00 125,000,000.00 25,000,000.00 25,000,000.00
Cash paid for dividend
or interests
23,749,566.96 23,749,566.96 22,258,712.91 22,258,712.91
Incl. Dividend and
profit paid by subsidiaries to
minor shareholders
Other cash paid for
financing activities
Sub-total of cash
outflow from financing
activities
148,749,566.96 148,749,566.96 47,258,712.91 47,258,712.91
Net cash flow from
financing
-8,749,566.96 31,250,433.04 127,741,287.09 241,441,287.09
IV. Influence of exchange
rate alternation on cash and
cash equivalents
134.79 -213,074.78 -212,693.38
V. Net increase of cash and
cash equivalents
-59,339,830.85 -20,046,588.33 164,276,510.47 160,452,617.62
Plus: Balance of cash
and cash equivalents at the
beginning of term
131,387,928.04 80,240,914.36 84,572,921.25 76,940,780.32
VI. Balance of cash and cash
equivalents at the end of term
72,048,097.19 60,194,326.03 248,849,431.72 237,393,397.9418
Consolidated statement of changes in equity
Unit: RMB
Items
Equity attributable to the shareholders of parent company
Notes Share capital
Capital
reserves
Surplus
reserves
Undistributed
profits
Minority
interest
Total
shareholders’
equity
Balance at
January 1,
2009
230,600,000.00 220,640,584.58 180,538,930.34
254,284,395.94 112,704,805.66 998,768,716.52
Increase:
3,983,671.58
10,089,454.81 -2,221,878.51 11,851,247.88
(I) Net profit
53,909,842.23 -2,221,878.51 51,687,963.72
(II)Gains and
losses directly
recognized in
shareholders'
equity
(III) Owner’s
contributions
and reduction
in capital
Profit
distribution
3,983,671.58
-43,820,387.42
-39,836,715.84
Withdrawal
Surplus
reserves
3,983,671.58
-3,983,671.58
Dividend
-39,836,715.84
-39,836,715.84
Balance at Jun.
31, 2009
230,600,000.00 220,640,584.58 184,522,601.92 264,373,850.75 110,482,927.15 1,010,619,964.4019
Consolidated statement of changes in equity (to be continued)
Unit: RMB
Equity attributable to the shareholders of parent company
Items
Notes Share capital
Capital
reserves
Surplus
reserves
Undistributed
profits
Minority
interest
Total
shareholders’
equity
Balance at Dec.
31, 2007
230,600,000.00
209,117,427.91
168,981,288.90
247,849,298.70
856,548,015.51
1.Add
：
Changes
in accounting
policies
2.Correction of
prior periods
errors
-278,173.82
-2,503,564.40
-2,781,738.22
Balance at
January 1, 2008
230,600,000.00
209,117,427.91
168,703,115.08
245,345,734.30
853,766,277.29
Increase:
11,523,156.67
11,835,815.26 8,938,661.64 112,704,805.66 145,002,439.23
(I) Net profit
68,739,276.90
68,739,276.90
(II)Gains and
losses directly
recognized in
shareholders'
equity
11,523,156.67
11,523,156.67
(III) Owner’s
contributions
and reduction in
capital
112,704,805.66
112,704,805.66
Profit
distribution
11,835,815.26 -59,800,615.26
-47,964,800.00
withdrawal
Surplus
reserves
11,835,815.26 -11,835,815.26
Dividend
-47,964,800.00
-47,964,800.00
Balance at Dec.
31, 2008
230,600,000.00 220,640,584.58 180,538,930.34
254,284,395.94
112,704,805.66
998,768,716.5220
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 June 2009
(All amounts in RMB Yuan unless otherwise stated)
1．COMPANY BACKGROUND AND PRINCIPAL ACTIVITIES
Shenzhen Chiwan Petroleum Supply Base CO., LTD ("the Company") is founded by
restructuring of Shenzhen Chiwan Base CO., LTD, with the license of Shen Fu Ban Han
(1995) NO.112 issued by General Office of the People’s Government of Shenzhen
Municipality. The Company is approved by the license of Shen Fu Ban Han (1995)
NO.112 issued by General Office of the People’s Government of Shenzhen Municipality
and the license of Shenzhen Ban Fu NO.33 issued from Stock Management General
Office of the People’s Government of Shenzhen Municipality on 11 May 1995 and 16
June 1995, respectively. The Company launches the foreign investment shares (B-Shares)
listed inside China. After launching, the total shares are 230,600 thousand ordinary
shares, with the value of RMB￥1Yuan for each. The total value of shares are worth
RMB ￥230,600,000.00Yuan. The shares of the Company were listed on Shenzhen Stock
Exchange since 28 July 1995, according to Shenzhen shi zi (1995) NO.14 <> issued by Shenzhen Stock Exchange. The Company registered address
is Shenzhen, Guangzhou province, the People's Republic of China. The controlling
shareholder of the Company is China Nanshan Development (Group) Incorporation
(Nanshan Group), which holds 51.79% of the Company shares.21
The scope of business operating and principle activities for the Company and the
subsidiaries (the Group) are providing the services in docks and ports; yards, warehouses
and offices leasing; providing labor services, goods assembling and transporting,
equipment leasing; water, power and oil supplying; logistical services for offshore
petroleum; bonded warehouses and yards operation.
The Company’s financial statements have been approved by the Company board since 17
April 2009.
2. DECLARATION FOR THE ACCOUNTING STANDARDS
The financial statement for the Group are prepared based on <> issued from Ministry of Finance
People’s Republic of China and other accounting standards, which truly and fully
reflected about the Company financial situation, operating results and cash flow etc.
3. BASIS OF PREPARATION
The Group’s financial statements have been prepared on the base of the Company's
"going concerned", according to the transactions and issues actually took placed, and
following <> issued from
Ministry of Finance People’s Republic of China and other accounting standards
.
4. PRINCIPAL ACCOUNTING POLICIES
4.1-Accounting period
The Company's accounting year starts on 1 January and ends on 31 December.
4.2-Recording currency22
The recording currency of the Company is the Renminbi (Rmb).
4.3-Basis of accounting and measurement bases
The Company follows the accruals basis of accounting. Assets are initially recorded at
actual costs on acquisition, can be measured at replacement costs, net present value,
current costs and fair value with sufficient reliability.
4.4-The definition of cash equivalents
The cash equivalents are the short-term (expired in three months from the date of
purchase), high liquidate investments that are readily convertible into known amounts of
cash and which are subject to insignificant risks of changes in value.
4.5-Foreign currency translation
In the initial measurement for foreign currency transactions in the Group, the foreign
currency transactions are translated into Rmb at the exchange rates stipulated by the
People's Bank of China ("the stipulated exchange rates") on the first day of the month in
which the transactions took place.
Monetary assets and liabilities denominated in foreign currencies at the balance sheet
date are translated into Rmb at the stipulated exchange rates at the balance sheet date.
Exchange differences arising from these translations are expensed, except for those
attributable to foreign currency borrowings that have been taken out specifically for the
construction of non-current assets, which are capitalized as part of the non-current assets
costs, in accordance with << the Accounting Standards for Business Enterprises –
Borrowing costs>>. Non –monetary items that are measured in terms of history cost in
foreign currencies are translated into Rmb at the stipulated exchange rates at the date of
transaction took placed. Non –monetary items carried at fair value that are denominated
in foreign currencies are translated into Rmb at the exchange rates prevailing on the date23
when the fair value was determined. Translation differences arising from the use of the
different exchange rates are recognized in profit or loss for the period or the capital
surplus.
4.6 Financial assets and financial liabilities
a-The classification of financial assets and liabilities
In the initial measurement, the Group classifies the financial assets and financial
liabilities as followings, according to the Group’s operation situation and the needs for
the risk management
1) A financial asset at fair value through profit or loss.
2) Held –to-maturity investments
3) Loan and receivables
4) Available- for- sale financial assets
5) Other financial liabilities
The Group initially measures the financial assets and financial liabilities at the fair value.
For the financial asset and financial liabilities at fair value through profit and loss, the
related transaction fees are expensed. For other financial assets and financial liabilities,
the related transaction fees are capitalized as initial measurement.
b-The measurement of financial assets and liabilities
The Group should recognize a financial asset or a financial liability on its balance sheet
when, and only when, it becomes a party to the contractual provisions of the instrument.24
The Group initially measures the financial assets and financial liabilities at the fair value.
For the financial asset and financial liabilities at fair value through profit and loss, the
related transaction fees are expensed. For other financial assets and financial liabilities,
the related transaction fees are capitalized as initial measurement.
The subsequent measurement of financial assets and financial liabilities are:
1) A financial asset at fair value through profit or loss is measured at the fair value
at the subsequent to initial measurement. Any gain or loss is recognized in profit
or loss for the period.
2) Held –to-maturity investment and account receivables are carried at amortized
cost using the effective interest method. When derecognizing, any impairment
loss and gain or loss at amortization are recognized at the profit or loss in the
period.
3) At the balance date subsequent to initial recognition, available-for-sale financial
assets are measured at fair value. Changes in fair value, except the impairment
loss and exchange differences arising from monetary financial assets, are
recognized in equity, until the financial asset is disposed, at which time, the
cumulative gain or loss previously recognized in equity is removed from equity
and recognized in profit or loss.
4) For the financial instrument that do not have a quoted market price in an active
market and whose fair value can not be reliably measured and derivatives that
are linked to and must be settled by delivery of such unquoted equity
instruments, they are measured at cost.25
5) The subsequent to initial measurement for the other financial liabilities are
measured at the amortized cost.
c-The fair value method for the financial assets and financial liabilities
The financial assets and financial liabilities at the active market, the quoted price is
determined as the fair value. In the inactive market, the estimation for the value is
adopted to determine the fair value.
d-The impairment loss for the financial assets and the provision for impairment loss
1) The scope and evidence for impairment
At the balance sheet date, the assets, but the financial assets at the fair value through
profit and loss, are assessed by the Group to make a provision for any impairment, if there
is any objective evidence indicating. The financial assets are impaired where there is the
objective evidence that, as a result of one or more events that occurred after the initial
measurement of the financial assets, the estimated future cash flows of the financial assets
have been impacted, which can be reliably measured by the Group.
2) Provision for impairment loss of financial assets
For financial assets carried at the amortized costs, if there is the objective evidences
indicate that the financial assets are impaired, the carrying amount of the financial asset
is reduced by the present value of future estimated cash flow (exclude the loss of the
future goodwill). The reduction in the carrying amount is recognized in profit and loss
for the period. The impairment test was carried out for the financial asset with the
material value. If there is the objective evidence that the financial assets are impaired, the26
impairment loss is recognized as the profit and loss for the period. The impairment tests
are carried out or carried out separately, respectively for the financial asset with the
immaterial value, including financial combination with the similarity credit risks. The
non-impaired assets tested in the separate impairment tests (including the single items
with the significant amount and non-significant amount financial assets), which includes
the financial combination with the similarity credit risks, will being tested for
impairment again. The impaired assets tested in the separate impairment tests, excluding
in the impairment tests for the financial combination with the similarity credit risks. For
the impaired financial assets, exclude the financial combination with the similarity credit
risks, if there is the objective evidence that the impaired assets are recovered from the
impairment loss, and related to the impairment events, the reduction in the carrying
amount can be reversed to recognize as profit and loss for the period. However, the
reversed amount can not beyond the amortized costs without the impairment loss. The
impairment tests and provision for the account receivable are referred to the Notes 4.7
Account Receivables.
4.7 Account Receivables
a-The recognition and measurement for the account receivables
The account receivables include the account receivables and other receivables. The
account receivables are composed by the labor services provided by the Company and
recognized at the fair value agreed at the contract. The account receivables are presented
by the amortized costs net of bad debts under the effective interest method.27
b-The recognition of the provision for the bad debts
At each balance sheet date, the Group should assess whether there are any indications
that the value of an asset may be impaired. The following indications should be
considered in deciding whether there has in fact been an impairment of an asset.
1) The debtors suffered the financial difficulties
2) The debtors went against the agreement （in terms of the interests and
principal delay repayment）
3) The debtors went through the bankruptcy or financial reconstructured.
4) Other objective evidence indicated the devaluation for the account
receivables
c-The method of provision for bad debts
At the balance sheet date, the account receivables with the material value were being
impairment tested by the Group. If there is the objective evidence that the account
receivables are impaired, the differences between the present value of future cash flow and
its carrying amount is recognized as impairment loss and make the provision for the bad
debts. If the present value of short-term cash flow is little less than the carrying amount,
the future cash flow do not need to be discounted to the present value in the impairment
tests. For the account receivables with the immaterial value and the non-impairment
account receivables, the impairment loss is allocated, pro rata to the balance of the
account receivable. The percentage of the provision for the impairment loss is 1%.
If there is the objective evidence that the impaired account receivables are recovered from
the impairment loss, and related to the impairment events, the reduction in the carrying
amount can be reversed to recognize as profit and loss for the period. However, the
reversed amount can not beyond the amortized costs without the impairment loss.28
4.8-Inventories
a-the component of inventories
Inventories include materials, repair fitting and low cost consumables.
b-the measurements of inventories
Inventories are recorded at their cost on acquisition. The costs of the inventories include
the cost of purchase, the cost of produce and other expenses. The cost of the inventories
which are taken away for produce is determined by using the weighted average method.
c-the measurements of low cost consumables
Low cost consumables use one-off amortization method.
d-The counting of inventories is subsequent connected with the last counting.
e-the measurements of the provision for declines in the value of inventories
At the balance sheet date, the inventories are measured at the lower of the cost and net
realizable value.
Net realizable value is the actual or estimated selling price less all costs to complete and
all necessary to make the sale
The provisions for the impairment loss have been made to individual item by the Group.
At the balance sheet date, if the costs of the inventories are higher than the net realized
value, the provision for impairment loss was recognized as the profit or loss for the period.
If the elements influenced the impairment of inventories are no longer exits, the
impairment loss was reversed and recognized as the profit or loss for the period.29
4.9 Long-term equity investments
a-The initial measurement of long-term equity investments
The long-term equity investments achieved by the Company through the common control
of a business combination, in accordance with long-term equity investment obtained by
the merging parties, are recognized as the initial investment cost at the amount of the
owner's equity share of book value. Long-term equity investments achieved through the
common control of a business combination are identified by the initial measurement, in
accordance with the combined costs. Long-term equity investments acquired by others
determine the value of the initial investment cost by classifying different ways of the
actual payment of cash, issue equity securities at fair value, and investment contract or
agreement. Initial investment costs include long-term equity investment which is directly
related to the costs, taxes and other necessary expenditures.
b-Subsequence measurement and revenue recognition of long-term equity investment
1) The long-term equity investments, which is able to be exercised control, but do not
have joint control or significant influence by the company's investment unit, at no
quotation in an active market, where the fair value measurement should not reliable, are
accounted for using the cost method.
Long-term equity investments using the cost method are accounted in accordance
with the initial investment cost. The cost of long-term equity investment are
adjusted by any additional or returns on investment. Declared cash dividends or
profits assigned by the investment units, are recognized as investment income at30
current period.
Only the allocation of the accumulated net profits after investment are recognized by
the Company as investment income, any obtained profits or cash dividends in excess
of this amount are recognized as the initial part of the recovery of investment costs.
2) Long-term equity investments on the investment unit with joint control or
significant influence with the Company are measured using the equity method of
accounting. The long-term equity investment of the initial investment cost should not be
adjusted if the initial investment cost of long-term equity investment is greater than the
fair value of identifiable net assets in investment units when the timing of being invested.
If the initial investment cost of long-term equity investment is less than the fair value of
identifiable net assets in investment units when the timing of being invested, the
difference are recognized as profit or loss in the current period, at the same time adjusted
to the cost of long-term equity investment.
Using the equity method, net profit or loss from investment units after being
invested is recognized as the long-term investment gains and losses and adjusted to
the book value of equity investment.
Net profit or loss of the investment unit is recognized on the base of the fair value of
the identifiable assets of investment unit, in accordance with the Company
accounting policies and accounting period, and offset the amount of insider trading
with the percentage of shareholding in the partnership and joint venture corporate
(if insider trading losses belong to the loss of assets for impairment, the losses31
should be recognized in full). If the debit balances of long-term equity investment
exist before the implementation date, the investment gains and losses are recognized
net of the debit balances, which are amortized by original straight-line method. The
book value of long-term equity investment is reduced by the certain amount in
accordance with the profit or distributable cash dividends declared by the
investment units. The investment losses are recognized by the Company to the
extent of written-down the book value of long-term equity investment and
investment gains from the investment units to zero, unless the Company has the
obligation for additional losses. The book value of equity long-term investment is
reduced by the amount changed on shareholders’ equity in investment units, which
excludes from the net profits or losses in investment units, in accordance with the
profit or cash dividends distributed by the declaration from the investment units,
and recognized as the shareholders’ equity, which will transfer to the profit or loss
for the current period when disposal of investment unit, pro rata.
c-The basis to determining common control and significant impact
1) The basis of determining common control include: any one of the joint venture
parties should not have sole control of the joint venture's production and
operation activities; the basic operations in the joint venture are agreed by all
parties in that joint venture.
2) the basis of determining a significant impact include: the Company owned
directly or through subsidiaries indirectly more than 20% (on and above), but
less than 50% of the investment unit voting shares, unless there is clear evidence
that the circumstances under which participation should not be involved in32
production and management decision-making and no major impaction, are
considered as the significant impact on investment unit. The Company, who
owns less than 20% (excluding 20%) of investment unit voting shares, is
generally not considered to have a significant impact on the investment units.
4.10 Investment real estate
The investment in real estate of the Group includes rental buildings.
The cost model is adopted by the Group for subsequence measurement in investment real
estate. The method of the average number of years is used for depreciation of real estate
investment. Its expected useful life, the net residual value of the rate and annual
depreciation rates are as follows:
Items Expected useful life
Expected
Residual value
Rate of annual
depreciation
Buildings 10-45 years 5%,10% 2%-9.5%
4.11 Non-current assets
a-The definition of non-current assets
The non-current assets are tangible assets held by the Company for more than one
accounting period for use in the production or supply of goods or services, for rental to
others, or for administrative purposes. The non-current assets are recognized if:
1) The result of the past events and from which future economic benefits are
expected to flow to the enterprise.33
2) The cost of the non-current assets can be measured reliably.
b-The classification and depreciation of non-current assets
The method of average number of years is used for depreciation of non-current assets. The
life of all types of non-current assets, expected net residual value, and annual
depreciation rates are as follows:
Items Expected useful life
Expected
Residual value
Rate of annual
depreciation
Housing and building 5-50 years 5%、10% 1.8%-9.5%
Port facilities 50 years 5% 1.9%
Machinery and
equipment
3-20 years 5%、10% 4.5%-31.7%
Transport 3-14 years 5%、10% 6.4%-31.7%
Renovation of
non-current assets
2-5 years - 20%-50%
Office and other
equipment
3-5 years 5%、10% 18%-31.7%
The non-current assets with impairment losses are depreciated based on the amount of its
original price less the expected net residual value, the accumulated depreciation, net of
the impairment losses, and expected useful life. The costs of non-current assets reached
the expected useful condition but not yet for the completion are determined by estimated
value, which are the base of the depreciation. After completion, the original estimated
value are adjusted by actual costs, but the amount of depreciation provided does not need
to be adjusted
At the end of each financial year, the Group reviews the useful life of non-current assets,
estimated residual value and method of depreciation, and adjusts if necessary.
4.12 Construction in progress34
The constructions in progress of the Company are the construction costs, other necessary
expenditures to make the construction in progress to reach the useful conditions, as well
as capitalized borrowing costs which incurred to bring the non-current assets to the
working conditions. The construction in progress is recorded at the actual cost which
actually incurred. The construction in progress is transferred to non-current assets or
investment real estate when the assets are ready for their intended use.
4.13 Intangible assets
a-The initial measurement
Intangible assets include the right to use land and terminal, computer software and
trademark, etc.
At reconstruction of the Group, the land use rights are accounted as the assessed value;
the land use rights achieved by paying the price, are accounted as the amount of actual
payment of the purchase price; the right to use land and terminal obtained through
long-term rental of terminals and land are accounted as the amount of actual payment of
the purchase price; the computer software are accounted as the amount of actual payment
of the purchase price.
b-The subsequence measurement
1) The estimated useful life of intangible assets
The intangible assets owned or controlled by the Group with the contractual rights or
other statutory rights, have the useful life no longer than contractual rights or other35
statutory rights; the renewal period are included in the useful life if the contractual rights
or other statutory right are be to renewed at maturity due to the continuation of contracts,
and there is evidence that the renewal does not require the Company to pay large costs;
The useful life of intangible assets which is uncertain provided in the contract or law are
determined through the historical experience or the hiring of experts, where the benefit
that the intangible assets bring to the Company still can not be assessed, the Company
consider the impairment assets with uncertain useful life.
2) Review of intangible assets useful life
At the end of each financial year, the Group reviews the useful life of intangible assets,
estimated residual value and method of depreciation, and adjusts if necessary.
3) Amortization of intangible assets
The methods of amortizing intangible assets adopted by the Company are as follows:
i. The right to use land and pier
At reconstruction of the Group, the land use rights are assessed by straight-line method
with the useful life of 14 years. The land use rights achieved by paying the price are
accounted with straight-line method with the useful life of 50 years. The right to use land
and terminal obtained through long-term rental of terminals and land are accounted with
straight-line method with the useful life of 14-25 years within expected benefit gained
period.36
ii. The rights to use computer software and trademark
The rights to computer software and trademark are used the straight-line method to
amortize with, the expected length of 2-5year and 10-year respectively. The indefinite life
of intangible assets does not being amortized, but being tested for impairment at the end
of each year.
4.14 Impairment of Assets
a- The scope of application
Impairment of assets described in this note mainly include long-term equity investment
(not including long-term equity investment without common control or significant
influence, no quotation in an active market, and reliable measurement for the fair value),
investment in real estate (excluding real estate investment with the fair value
measurement mode), non-current assets, construction in progress, and intangible assets
etc.
b- The possibility of assets impairment
At the balance sheet date, the Group reviews whether there is any possibility for assets
impairment. The goodwill formed by mergers and the intangible assets with indefinite life
are tested for impairment annually, irrespective of whether there are signs indicated.
Existence of the following signs, indicating that the impairment of assets may exist:
1) The current market value of assets were declined significantly higher than the
expected normal usage;37
2) The economic, technological or law environment, in which Group operates, as
well as the significant changes of current market position in the near future, will
have a negative impact on the Company;
3) The market interest rates or other market rates of return at the current period
has increased, thus affecting the discount rate of the present value of future cash
flows assessed by the Group's, resulting in a significant reduction in the
recoverable amount of assets;
4) There is evidence that the asset has been outdated or has been physical damage;
5) The assets has been or will be idle, termination, or to be disposal ahead of
schedule;
6) The Group internal report evidence that the asset's economic performance has
been lower than or lower than expected, such as the net cash flow or achieve an
operating profit (or loss) created by the assets is far below (or above) the
estimated amount of money ;
7) Other signs of impairment for assets indicate.
c- The measurement of recoverable amount of assets38
The recoverable amount is estimated since signs of asset impairment exist. The
recoverable amount is identified at the higher of the fair value of assets net of the cost of
disposal of assets and the expected future net present value of cash flow.
d- The recognition of asset impairment losses
If the recoverable amount is less than its book value, the book value of assets is written
down to its recoverable amount, and the amount of write-downs recognized as an asset
impairment losses, which is recognized as provision for impairment charged to the profit
or loss in the current period. Once the impairment loss of asset was recognized, the
depreciation or amortization expenses in the remaining year will be adjusted accordingly,
so that the book value of assets will be accessed in the remaining useful life (net of
expected net residual value). Once the asset impairment loss was confirmed, it can not be
reversed in future.
4.15 other long-term assets
Other long-term prepaid assets are the leasing of land use right with the period of more
than one year since the balance sheet date, which are recorded according to the actual
price paid, and at the beginning of the leasing period transfer to the intangible assets with
the average amortization for the expected period.
4.16 Borrowing Costs
a- The principle of capitalization of borrowing costs
Borrowing costs include interest on borrowings, amortization of the discount or premium,
ancillary costs, as well as exchange differences from foreign currency borrowing, etc.39
Borrowing costs incurred by the Group directly attributable to assets purchased or
production, are capitalized and recognized at the cost of related assets; other borrowing
costs are recognized as expense when incurred.
Capitalization of borrowing costs should commence when:
1) expenditure has been incurred, which including cash, transfer of non-cash assets
or assume the form of interest-bearing debt related to purchase or construction
assets eligible for capitalization;
2) borrowing costs have been incurred;
3) activities that are necessary to prepare the asset for its intended use or sale are in
progress.
b- Capitalizing period of borrowing costs
Borrowing costs Incurred for the purchase or construction of production are eligible for
capitalization as cost since the assets is ready to be used or available for sale; since the
assets is ready to be used or available for sale borrowing costs are expensed in the current
period. The irregular interruption of process of purchase assets or production which are
eligible for capitalization incurred and the interruption of the time more than 3
consecutive months, then suspended of borrowing costs capitalized. The period of
suspension of borrowing costs capitalized are not included.
c-The calculation of capitalization of borrowing costs
At capitalization period, the amount of capitalization interest (including amortization of
discount or premium) in each accounting period, is recognized in accordance with the40
following:
1) For borrowings specifically made to acquire assets or production, the net amount of the
interest actually incurred for the period, less interest income from the unused part of
borrowing deposited into the bank or from a temporary investment is accounted for
capitalization.
2) For borrowings generally made to acquire assets or production, the amount of interest
capitalized is calculated by the weighted average rate based on the amount net of the
cumulative capital expenditure from capital expenditure from specified borrowings
multiplied by the capitalization rate in general borrowing.
d- Determination of interest rates
Capitalization rate should be determined under the weighted average rate of general
borrowing.
4.17 Employee benefits payable
Employees’ payment include wages, bonuses, allowances and subsidies, welfare, social
insurance and housing accumulation fund, trade union funding and funding for
education and other expenses related to the services for employees. Employees’ payment is
recognized by the Group's as a liability since the services provided by the employees
incurred at the accounting period.
The Group joins the social security system in accordance with the regulations established
by a government agency, which includes the basic pension insurance, medical insurance41
and housing accumulation fund and other social security system. The corresponding
expenditure is recognized as the cost of related assets or expensed in the current period in
the period incurred.
4.18 Revenues
a- Services provided
Revenue from labor services provided by the Group is recognized by the percentage of
completion method at balance sheet date, if the amount can be reliable estimated. The
measurement of volume of working done can be measured by the Group in accordance
with the progress of the labor transaction completed. Income in the labor services
provided is recognized, only when the associated economic benefits are likely to flow to
the enterprise, and services-related revenue and costs can be reliable measured.
b-The recognition of revenue from transferring the usage right of the assets
1)The principle
Revenue from transferring the usage right of the assets including the income from
operating lease and interest income, etc, which are met following conditions, can be
recognized: A. economic benefits related transaction flow into the Company; B. The
amount of revenue can be measured reliably.
2)The approach
a) The income from operating lease is recognized using the straight-line method in related
leasing period. The income from operating lease received more than one year in advance is42
recognized as deferred income and appropriated using the straight-line method in
accordance with the number of years termed in leasing contract.
b) The amount of interest income is based on actual interest rates which are the Group's
interest rates applied to outside borrowers.
4.19 Leasing
a-The classification
The lease of the Group is classified as finance leases and operating leases at the start date
of leasing.
b- The reorganization of finance leases and operating leases
It gives the following lists of situations in which a lease would normally be classified as a
financial lease.
1) The lease transfers ownership of assets to the lessee by the end of the lease term;
2)The lessee buy has the option to buy the asset at a price expected to be lower than fair
value at that time, where it is assumed that the Group will exercise its right to buy the
assets, at the beginning of the lease;
3) The lease term is for the major part of the economic life of the asset, even if the title is
not transferred;43
4) At the beginning of the lease, the present value of minimum lease payments from leasee
or received by the leasor is approximately equal to the fair value of the leased asset;
5) The unique nature of the leased asset is used by the Group (or lessee) only, if no
modification.
Operating lease is the lease other than finance leases.
c-The accounting treatment of operating lease
For operating lease, the lease payment recognized as gains or losses in current period by
the lessor or the lessee in accordance with the straight-line method during the lease term.
Initial direct expenses incurred by the lessor or the lessee are recognized as gains and
losses in the current period. Contingency lease payments are recognized as profit and loss
in current period when incurred.
4.20 Government grants
a- Recognition of government grant
Government grants should not be recognized in the income statement until:
1) The conditions for receipt have been complied with
2) There is reasonable assurance that the grants will be received.
b- The measurement of government grants44
1) The amount of the government grants for the monetary assets received or
receivable is measured at monetary amount in financial statement. The amount of
government grants for non-monetary assets is measured at the fair value; if the fair
value can not be reliably measured, the notional amount (Rmb 1 Yuan) is used for
measurement.
2) Government grants related to assets are recognized as deferred income and
appropriated in the useful life of assets, which is realized in profits and losses in the
current period. However, government grants measured in notional amount are
directly recognized into the current profit and loss. Government grants related to
revenue-making are treated with the different situations: to compensate the coming
expenses or losses, the government grants are recognized as deferred income and
charged into profit and loss in current period; to compensate the expenses or losses
incurred, the government grants are charged into profit and loss in current period
directly.
3) The repayment of government grants is treated differently according to the
different situations:
Repayment of a grant related to income should be applied first against any
unamortized deferred credit set up in respect of the grant. To the extent that the
repayment exceeds any such deferred credit, or where no deferred credit exists, the
repayment should be recognized immediately as an expense.
4.21 Income tax45
a-Accounting method for income tax
The balance sheet liability method is accounted for the tax in the Group.
b-Temporary differences
Temporary differences are the difference between the tax base and the carrying value of an
asset or liability, as well as those not recognized as asset or liability in accounting but can
be recognized in accordance with the provisions of tax laws. Temporary differences may
be either taxable or deductible.
c- Recognition of deferred tax assets
The deferred tax assets should be recognized for all deductible temperature differences to
the extent that it is probable that the taxable profit will be available against which the
deductible temporary difference can be utilized, unless the deductible temperature
differences arising from:
1) The transaction incurred beyond the scope of merger do not affect neither the
accounting profit nor taxable profit.
2) Deductible temporary differences related with subsidiaries, joint ventures and
partnership are recognized as deferred tax assets, only satisfying the following
conditions: temporary differences in the foreseeable future is likely to be recovered, and
the future taxable income will be likely to offset deductible temporary differences.
d-Recognition of deferred tax liabilities46
The deferred tax liabilities are recognized for taxable temporary differences, unless the
taxable temporary differences arising from the following:
The initial recognition of goodwill, and assets or liabilities resulting from transactions
with the following characteristics: the transaction incurred beyond the scope of merger do
not affect neither the accounting profit nor taxable profit; the timing of reversal of
deductible temporary differences related with subsidiaries, joint ventures and partnership
can be controlled, and its amount are likely not to be reversed in the foreseeable future.
e-Impairment of deferred tax asset
The book value of deferred tax assets should be reviewed at the balance sheet date. If there
is no sufficient taxable profit to offset deferred tax assets, the carrying value of the
deferred tax assets will be reduced. The reduction in the carrying value will be debited to
the owner's equity, as well as deferred tax assets originally recognized as the owner's
equity. For other situations, the amount reduced should be recognized as the tax expenses
for the current period. The reduction in carrying value of deferred tax assets can be
reversed if the taxable profits are sufficient.
4.22 Segment Reporting
The Group's financial report is formed by business divisions. Transfer price among
segments is referenced to market prices, the indirectly expenses of the segments are
appropriated to segments at the percentage of income contributed from segments.47
4.23 Business consolidation and consolidated financial statements
The notes of the principal accounting policies in consolidated financial statements are
refer to Note 7.
5. THE MAIN ACCOUNTING POLICIES, CHANGES IN ACCOUNTING
ESTIMATES AND CORRECTIONS OF PRIOR PERIOD ERRORS
The significant accounting estimation and key assumption are assessed on going
concerned basis, based on the historical experience and other factors. No major
adjustment of significant accounting estimation and key assumption related to carrying
amount of assets and liabilities for the next fiscal year was found by the Company.
No major changes in accounting policies or accounting estimation are made in the
current year by the Company.
6. TAXES
6.1 Turnover tax
Items Tax rate Tax
VAT
Business tax
6%
、
17%
3%
、
5%
Revenue from water
charges/Tariff revenue
Office rental income
/Handling and port
management income
/Warehousing storage
revenue
Taxable amount of VAT is the output amount of VAT net of the input amount of VAT;
sales tax is accounted on the taxable profit.48
6.2 The tax for city construction maintenance and education expenses levies
The tax for city maintenance construction is paid at7%, 5%, 1% of the actual taxable
turnover; the tax for education expenses levies is paid at 3%of the actual taxable
turnover.
6.3 Income tax
Name of the Company and subsadiries Income tax rate
（
1
）
The Company 20%
2
BLOGIS(Shenzhen)Co.,Ltd
（
Shenzhen Baowan
）
20%
（
3
）
BLOGIS(Guangzhou)Co.,Ltd
Guangzhou Baowan
）
25%
4
BLOGIS(Tianjin)Co.,Ltd
（
Tianjin Baowan
）
25%
（
5
）
BLOGIS(Langfang)Co.,Ltd
Langfang Baowan
）
25%
6
BLOGIS(Wuhan)Co.,Ltd
（
Wuhan Baowan
）
25%
（
7
）
BLOGIS(Xindu)Co.,Ltd
Xindu Baowan
25%
8
BLOGIS(Longquan)Co.,Ltd
（
Longquan Baowan
）
25%
（
9
）
BLOGIS(Shenyang)Co.,Ltd
Shenyang Baowan
25%
10
BLOGIS(Nanjing)Co.,Ltd
（
Nanjing Baowan
）
25%
（
11
）
BLOGIS(Kunshan)Co.,Ltd
Kunshan Baowan
25%
12
BLOGIS(Shanghai)Co.,Ltd
（
Shanghai Baowan
）
2.5%
（
Note
①）
Note①： The income tax for this subsidiary is taxed at 2.5% of the total revenue
according to income tax for the storage industry in 2009.
7. THE CONSOLIDATION AND CONSOLIDATED FINANCIAL STATEMENTS
7.1 The consolidation
There is no consolidation took place in the Company at the current year.
7.2 Consolidated Financial Statements49
a-The scope of consolidation
1)Principles of recognition
The scope of consolidation of consolidated financial statements shall be determined on
the basis of control. The term “control” refers to the power of an enterprise to govern the
financial and operating policies of another enterprise so as to obtain benefits from its
business activities. When a parent company is holding more than 50% of the voting
rights of an investee entity, or less than 50% of the voting rights but the control in fact,
the investee shall be included in the scope of consolidation of consolidated financial
statements.50
2)The determination of subsidiary companies status and consolidation scope in the year 2009
Name of subsidiary
Registered
address
The
nature of
business
Registere
d capital
(Million/
RMB )
Business
scope
Actual
controllor
Organisation
code
Actual
investmen
t amount
of the
Company
(Million/
RMB )
Shareh
olding
ratio
Proportion
of voting
rights
Consolida
ted or not
(Y/N)
I. Subsidiaries achieved from the combination of the companies under the common control
Shenzhen Baowan Shenzhen Service 3,441.00
Warehousing,
storage
Nanshan
Group
61885906-0 4,183.47
100%
100%
Y
II.
Subsidaries achieved by other ways
Shanghai
Baowan(Note
①
)
Shanghai Service
16,000.00
Warehousing,
storage
Nanshan
Group
76057836-6 14,400.00 90% 100%
Y
Guangzhou
Baowan(Note
②
)
Guangzhou Service
5,000.00
Warehousing,
storage
Nanshan
Group
76954322-3 4,500.00 90% 100%
Y
Tianjin
Baowan(Note
③
)
Tianjin Service
4,980.00
Warehousing,
storage
Nanshan
Group
78334845-9 2,988.00 60% 60%
Y
Kunshan Baowan Kunshan Service
12,000.00
Warehousing,
storage
Nanshan
Group
79231068-X 12,000.00 100% 100%
Y
Langfang
Baowan(Note
③
)
Langfang Service
5,000.00
Warehousing,
storage
Nanshan
Group
79546095-8 3,000.00 60% 60%
Y
Wuhan
Baowan(Note
③
)
Wuhan Service
3,000.00
Warehousing,
storage
Nanshan
Group
66346615-1 1,800.00 60% 60%
Y
Longquan
Baowan(Note
③
)
Chengdu Service
5,000.00
Warehousing,
storage
Nanshan
Group
66530615-1 3,000.00 60% 60%
Y51
Name of subsidiary
Registered
address
The
nature of
business
Registere
d capital
(Million/
RMB )
Business
scope
Actual
controllor
Organisation
code
Actual
investmen
t amount
of the
Company
(Million/
RMB )
Shareh
olding
ratio
Proportion
of voting
rights
Consolida
ted or not
(Y/N)
Xindu
Baowan(Note
③
)
Chengdu Service
3,000.00
Warehousing,
storage
Nanshan
Group
66533423-2 1,800.00 60% 60%
Y
Shenyang
Baowan(Note
③
)
Shenyang Service
3,000.00
Warehousing,
storage
Nanshan
Group
66715283-8 1,800.00 60% 60%
Y
Nanjing
Baowan(Note
③
)
Nanjing Service
5,000.00
Warehousing,
storage
Nanshan
Group
67133602-3 3,000.00 60% 60%
Y
Note①： The 90% shares of this company are held by the Company directly, 10% shares of this company are held by the Company through the
Company's wholly-owned subsidiary of Shenzhen Baowan;
Note②： The 90% shares of this company are held by the Company directly, 10% shares of this company are held by the Company through the
Company's wholly-owned subsidiary of Shanghai Baowan;52
b- The preparation of consolidated financial statements
Consolidated financial statements are prepared on the base of the parent company
and subsidiaries financial statements, with the adjustment of long-term equity
investment to subsidiaries under the equity method, net of the parent company equity
investment from the subsidiaries and the inter-group significant transactions. Minority
interest is allocated under the item of "minority interest" in consolidated balance sheets
of the owner's equity. Minority gains and losses is allocated under the item to the
"minority shareholders" in net profit of consolidated income statement.
The accounting policies of subsidiaries are needed to be changed to consistant with the
parent company one, if they are different.
c-Minority Interests
30 June 2009
RMB
31 December 2008
RMB
Nanshan Group
110,482,927.15 112,704,805.66
8. NOTES TO THE MAIN ITEMS
8.1 Currency funds
30 June 2009 31 December 2008
Original
amount
Exchange
rate RMB
Original
amount
Exchange
rate RMB
Cash in
hand -RMB
37,894.12 1.00 37,894.12 12,595.25 1.00 12,595.25
-HK$
3,216.41 0.88 2,830.45 3,184.12 0.88 2,802.03
Cash in
hand-total
40,724.57 15,397.28
Cash in
bank-RMB
71,450,908.72 1.00 71,450,908.72
130,786,58
7.61
1.00 130,783,587.61
Cash at
bank-US$
65,266.91 6.83 445,773.00 65,840.46 6.83 449,690.34
Cash at
bank-HK$
785.10 0.88 690.90 33,241.83 0.88 29,252.81
Cash at
bank-total
71,897,372.62 131,262,530.76
Other
monetary
110,000.00 1.00 110,000.00 110,000.00 1.00 110,000.0053
30 June 2009 31 December 2008
Original
amount
Exchange
rate RMB
Original
amount
Exchange
rate RMB
assets-RMB
Other
monetary
assets-total
110,000.00 110,000.00
Total
72,048,097.19
131,387,928.04
8.2 Accounts receivable
a- Disclosure of accounts receivable by client categories is as follows:
Category 30 June 2009
Amount
RMB
% of total
balance
Provision for
bad debts
RMB
Carrying
amount
RMB
The
percentage
of the bad
debts
provision
Individually
significant
accounts 43,720,997.21 78.81% 203,513.20 43,517,484.01 0.47%
Other
insignificant
accounts 11,754,657.67 21.19% 100,106.41 11,654,551.26 0.85%
Total
55,475,654.88 100.00% 303,619.61 55,172,035.27 0.55%
Category
31 December 2008
Amount
RMB
% of total
balance
Provision for
bad debts
RMB
Carrying
amount
RMB
The
percentage
of the bad
debts
provision
Individually
significant
accounts 20,351,319.41 67.03% 203,513.20 20,147,806.21 1%
Other
insignificant
accounts 10,010,641.17 32.97% 100,106.41 9,910,534.76 1%
Total
30,361,960.58 100.00% 303,619.61 30,058,340.9754
b-The ageing of accounts receivable and related provisions for bad debts is analyzed
below:
30 June 2009 31 December 2008
Ageing
Amount
RMB
% of
total
balance
Provision for
bad debts
RMB
Amount
RMB
% of
total
balance
Provision for
bad debts
RMB
Within 1 year 54,843,296.91 98.86% 299,019.46 29,901,945.90 98.48% 299,019.46
Between 1 and 2 years 334,481.33 0.60% 1,395.27 139,526.79 0.46% 1,395.27
Between 2 and 3 years 201,668.44 0.36% 2,356.73 235,672.54 0.78% 2,356.73
Between 3 and 4 years 96,208.20 0.17% 188.40 18,840.00 0.06% 188.40
Between 4 and 5 years 659.75 65,975.35 0.22% 659.75
Total 55,475,654.88 100.00% 303,619.61 30,361,960.58 100.00% 303,619.61
c-The list of first fifth larger debtors
The Name of Debtors
Amount
RMB
% of total Ageing
CACT Operators Group
8,284,967.91
14.93%
With in 1 year
Shenzhen Weisheng Offshore
Oil Technology Co.,Ltd
5,862,043.73
10.57%
With in 1 year
Conoco Phillips
4,458,784.89
8.04%
With in 1 year
Shenzhen ST-ANDA Logistics
4,229,180.02
7.62%
With in 1 year
Husky Energy Inc.
3,729,197.88
6.72%
With in 1 year
Total
26,564,174.43
47.88%
d- Accounts receivable above including receivable from related parties 1,435,850.91
(RMB), accounting for the total amount of accounts receivable to 2.59%.
f-There are no accounts receivable from shareholders holding over 5% (inclusive) of
the Company shares.
8.3 Prepayment
The ageing of prepayment is analyzed below:
Ageing 30 June 2009 31 December 2008
Amount
RMB
% of total
Amount
RMB
% of total
Within 1 year
1,367,279.92 79.49% 845,476.49 67.46%
Above 3 years
352,722.13 20.51% 407,738.13 32.54%
Total
1,720,002.05 100.00% 1,253,214.62 100.00%
There is no prepayment from shareholders holding over 5% (inclusive) of the
Company shares.55
8.4 Other receivables
a- Disclosure of accounts receivable by client categories is as follows:
Category
30 June 2009
Amount
RMB
% of total
balance
Provision
for bad
debts
RMB
Carrying
amount
RMB Individually
significant
receivables
- - - -
Other
insignificant
receivables
6,041,172.93 100.00% - 6,041,172.93
Total
6,041,172.93 100.00% - 6,041,172.93
Category
31 December 2008
Amount
RMB
% of total
balance
Provision
for bad
debts
RMB
Carrying
amount
RMB
Individually
significant
receivables
- - - -
Other
insignificant
receivables
4,101,625.86 100.00% - 4,101,625.86
Total
4,101,625.86 100.00% - 4,101,625.86
b-The ageing of other receivables and related provisions for bad debts is analyzed below:
30 June 2009
31 December 2008
Ageing
Amount
RMB
% of
total
balance
Provision
for bad
debts
RMB
Amount
RMB
% of
total
balance
Provision for
bad debts
RMB
Within 1 year
4,988,548.13 82.58% - 2,924,640.16 71.30%
Between 1
and 2 years
1,000,000.00 16.55%
- 1,112,914.35 27.13%
Between 2
and 3 years
41,344.80 0.68%
- 60,691.35 1.48%
Between 3
and 4 years
11,280.00 0.19%
- 3,380.00 0.08%
Total
6,041,172.93 100.00% - 4,101,625.86 100.00%
c-There are no other receivables from shareholders holding over 5% (inclusive) of the56
Company shares.
8.5 Inventories
30 June 2009
Category Amount
RMB
Including:
capitalized
borrowing
costs
RMB
Provision
for
obsolete
stocks
RMB
Carrying
amount
RMB
Materials and
maintenance
fittings 1,273,603.22 - - 1,273,603.22
Low cost
consumables
- - - -
Total
1,273,603.22 -
-
1,273,603.22
8.5 Inventories- continued
Category
31 December 2008
Amount
RMB
Including:
capitalized
borrowing
costs
RMB
Provision
for
obsolete
stocks
RMB
Carrying
amount
RMB
Materials and
maintenance
fittings 1,425,264.13 - - 1,425,264.13
Low cost
consumables
1,525.00 - - 1,525.00
Total
1,426,789.13 -
-
1,426,789.13
Note：As at 30 June 2009, the cost of inventory is not higher than net realizable value.
8.6 Long-term equity investment
a- Long-term equity investment classified by items
Items
31 December 2008
RMB
Increase
RMB
Decrease
RMB
30 June 2009
RMB
Joint venture investment
279,739,030.03 9,632,447.51 - 289,371,477.54
Other equity investment
- -
- -
Less: Impairment of
long-term equity
investment
- -
- -
Total
279,739,030.03 9,632,447.51 - 289,371,477.5457
b- Joint venture investment details
Investee
Registere
d address
The
nature
of
busines
s
Investment
holding
period
Registered
capital
Sharehol
ding ratio
Propor
tion of
voting
rights
Chiwan Offshore
Petroleum
Equipment Repair
and Manufacture
Co., Ltd. (Note
①
)
Shen
zhen
Service
industry
30 2million US$ 20% 20%
Shenzhen Chiwan
Sembawang
Engineering Co.,
Ltd. (Note
②
)
Shen
zhen
Service
industry
28
30millionUS$
32% 32%
b- Joint venture investment details-continued
Investee
Total net assets
30 June 2009
(RMB)
Total revenues for
the period
(RMB)
Net profit for the
period
(RMB)
Chiwan Offshore
Petroleum Equipment
Repair and
Manufacture Co., Ltd.
(Note
①
)
21,592,200.86
21,029,876.44 2,407.095.54
Shenzhen Chiwan
Sembawang
Engineering Co., Ltd.
(Note
②
)
887,524,141,20
268,039,290.07 30,784,463,74
Note ①: Main business of Chiwan Offshore Petroleum Equipment Repair and
Manufacture Co., Ltd. is providing equipment inspection, maintenance and repair
services for the South China Sea oil exploration and exploitation
Note②: Main business of Shenzhen Chiwan Sembawang Engineering Co., Ltd. is
providing after-sales service for the products (including self-produced ones) that being
used in marine engineering, land-based industry and civil engineering.
Note②： Main business of Sembawan is providing the products used for marine
engineering, land industrial and civil engineering and after-sales services for those
products, as well as the export business with non-quota permits and non-franchised
merchandise.58
c- Long-term equity investment accounted for using equity method
Investee
Initial
investment
amount
RMB
31
December
2008
RMB
The
cost of
the
investm
ent
increas
ed(decr
eased)
in the
current
year
The
changes
in equity
of
invested
parity(exc
ludes the
cash
bonus)
Cash
bonus
obtain
ed
30 June
2009
RMB
Chiwan Offshore
Petroleum
Equipment Repair
and Manufacture
Co., Ltd
3,312,000.00 4,601,762.09 - 481,419.11 700,000 4,383,181.20
Shenzhen Chiwan
Sembawang
Engineering Co., Ltd
79,488,000.00 275,137,267.94 - 9,851,028.40 - 284,988,296.34
Total
82,800,000.00 279,739,030.03 - 10,332,447.51 700,000 289,371,477.54
d-As at 30 June 2009, the carrying amount of long-term equity investment is not
higher than net realizable value.
8.7 Investment real estate
a- Investment real estate details
Items
31 December
2008
RMB
Increase
RMB
Decrease
RMB
30 June 2009
RMB
Investment real estate
accounted by cost model
in subsequent
measurement
479,508,264.36
35,360,179.30
-
514,868,443.66
Less: Impairment of
investment real estate
-
-
-
-
Total
479,508,264.36
35,360,179.30
-
514,868,443.66
b- Investment real estate accounted by cost model in subsequent measurement
Items
31 December 2008
RMB
Increase
RMB
Decrease
RMB
30 June 2009
RMB
COST59
Items
31 December 2008
RMB
Increase
RMB
Decrease
RMB
30 June 2009
RMB
Buildings(Note)
610,613,123.29
44,552,758.10
655,165,881.39
ACCUMULATED
DEPRECIATION AND
ACCUMULATED
AMORTIZATION
Buildings
131,104,858.93
9,192,578.80
140,297,437.73
IMPAIRMENT OF
INVESTMENT REALESTATE
Buildings
-
-
-
NET BOOK VALUE
Buildings
479,508,264.36 35,360,179.30 514,868,443.66
Total
479,508,264.36
35,360,179.30
514,868,443.66
8.8Non-current assets
a- Non-current assets details
Items
31 December
2008
RMB
Increase
RMB
Decrease
RMB
30 June 2009
RMB
COST
Buildings (Note
①
)
113,913,941.29
5,308,059.61
378,950.00
118,843,050.90
Port facilities
45,460,529.33
-
-
45,460,529.33
Machinery and
equipment
58,853,637.71
1,540,800.00
108,988.00
60,285,449.71
Motor vehicles
16,353,941.32
108,988.00
-
16,462,929.32
Renovation of
non-current assets
13,320,175.19
-
-
13,320,175.19
Office appliances
and other
non-current assets
41,963,761.58
5,836,881.74
148,474.09
47,652,169.23
Total (Note
②
)
289,865,986.42
12,794,729.35
636,412.09
302,024,303.68
ACCUMULATED
DEPRECIATION
Buildings
23,211,753.31
2,500,345.39
31,905.40
25,680,193.30
Port facilities
28,655,749.36
460,411.44
29,116,160.80
Machinery and
equipment
42,134,146.23
1,773,815.37
43,907,961.60
Motor vehicles
9,071,947.22
898,369.41
18,982.04
9,951,334.59
Renovation of
non-current assets
12,456,352.72
12,456,352.72
Office appliances
and other
27,951,624.71
1,274,871.16
132,752.66
29,093,743.2160
Items
31 December
2008
RMB
Increase
RMB
Decrease
RMB
30 June 2009
RMB
non-current assets
Total
143,481,573.55
6,907,812.77
183,640.10
150,205,746.22
IMPAIRMENT OF
NON-CURRENT
ASSETS
Buildings
Port facilities
Machinery and
equipment
Motor vehicles
Renovation of
non-current assets
Office appliances
and other
non-current assets
Total
NET BOOK
VALUE
Buildings
90,702,187.98 2,807,714.22 347,044.60 93,162,857.60
Port facilities
16,804,779.97 -460,411.44 - 16,344,368.53
Machinery and
equipment
16,719,491.48
-233,015.37
108,988.00
16,377,488.11
Motor vehicles
7,281,994.10 -789,381.41 -18,982.04 6,511,594.73
Renovation of
non-current assets
863,822.47
-
-
863,822.47
Office appliances
and other
non-current assets
14,012,136.87
4,562,010.58
15,721.43
18,558,426.02
Total
146,384,412.87
5,886,916.58
452,771.99
151,818,557.46
b- Construction in progress transfer into non-current assets
Items
The timing of
classified as
non-current assets
The amount of
classified as
non-current assets
East Heights H Warehouse
30 April 2009 5,684,691.43
Comprehensive Building
of Kunshan Baowan
31 March 2009 5,131,006.00
Total
10,815,697.43
Comprehensive Building
c- Until 30 June 2009, there is no such situation as the carrying amount of
non-current asset is higher than the net recoverable amount.61
8.9 Construction in progress
a- Construction in progress details
Items
Budget
RMB
31
December
2008
RMB
Current year
additions
RMB
Current
year
transfer
into
non-curre
nt assets
RMB
Current
year
transfer
into
investment
real estate
RMB
Other
reductions
RMB
30 June
2009
RMB
Source
of
funds
Proportion
of the
actual
amount
to budget
East Heights H
Warehouse
38,560,000.00 29,866,123.04 2,226,776.25 5,684,691.43 23,217,482.10 - 3,190,725.76
Funds
raising 83.23% Logistics Park
Project of
Guangzhou Baowan
- 191,431.43 31,232.00 - - 222,663.43
Funds
raising
-
Logistics Park
Project of Xindu
Baowan
157,000,000.00 81,123,532.52 63,470,847.12
-
14,065,085.00
-
130,529,294.64
Funds
raising
and
loan 92.10% Logistics Park
Project of Wuhan
Baowan
315,000,000.00 47,800.00 - - - 47,800.00
Funds
raising
0.02% Logistics Park
Project of Langfang
Baowan
265,000,000.00 - 248,250.00 - - 248,250.00
Funds
raising
0.09% Logistics Park
202,000,000.00 6,771,035.80 2,559,169.72 - - 9,330,205.52
Funds
4.62%62
Project of Longquan
Baowan
raising
Logistics Park
Project of Tianjin
Baowan
348,200,000.00 208,541,524.26 70,150,559.18 - - 278,692,083.44
Funds
raising
and
loan
80.04% Logistics Park
Project of Nangjing
Baowan
313,000,000.00 4,574,370.00 - - 234,370.00 4,340,000.00
Funds
raising
1.39% Logistics Park
Project of Kunshan
Baowan
292,000,000.00 7,835,156.17 4,719,093.31 5,131,006.00 6,891,241.00 - 532,002.48
Funds
raising
4.30% Logistics Park
Project of Shenyang
Baowan
186,000,000.00 289,634.03 34,352.27 - - - 323,986.30
Funds
raising
0.17% Total
339,240,607.25 143,440,279.85 10,815,697.43 44,173,808.10 234,370.00 427,457,011.57
Including:
capitalized
borrowing costs
- 5,130,288.94 - - - 5,130,288.94
b-Until 30 June 2009, there is no such situation as the carrying amount of construction–in-progress is higher than the net recoverable
amount.-63-
8.10 Intangible assets
a- Intangible assets details
Items
Initial costs
RMB
31
December
2008
RMB
Current year
additions
RMB
Current
year
transfer
–out
RMB
Current year
amortizatio
n
RMB
Accumulated
amortization
RMB
30 June
2009
RMB
Way of
obtained
The first phase of land use
right
（
Note
①）
156,985,250.36 6,541,051.93 5,606,615.94 156,050,814.37 934,435.99
Capital
input
The first phase of the dock
（
Note
①）
22,319,972.81 929,998.56 797,141.82 22,187,116.07 132,856.74
Capital
input
Prepaid rent
（
Note
①）
36,110,385.42 19,619,977.20 722,207.76 17,212,615.98 18,897,769.44
lease
Guangzhou Baowan Land use
right
14,821,763.29 13,932,184.25 148,214.70 1,037,793.74 13,783,969.55
buy
Shanghai Baowan Land use
right
（
Note
②）
115,112,393.81 106,704,513.25 1,151,785.74 9,559,666.30 105,552,727.51
buy
Kunshan Baowan Land use
right
60,341,348.50 57,927,694.64 100,568.90 703,982.36 3,017,067.32 57,324,281.18
buy
Tianjin Baowan Land use right
139,964,130.77 137,150,781.41 1,406,674.68 4,220,024.04 135,744,106.73
buy
Shenyang Baowan Land use
right
（
Note
③）
29,920,759.44 29,269,218.55 300,711.18 952,252.07 28,968,507.37
buy
Longquan Baowan Land use
right
（
Note
④）
40,718,533.71 40,311,348.37 407,185.32 814,370.66 39,904,163.05
buy
Xindu Baowan Land use right
（
Note
④）
31,686,200.00 - 31,686,200.00 211,241.32 211,241.32 31,474,958.68
Trademark
230,500.00 182,308.42 3,141.66 14,666.64 59,716.56 170,783.44
buy
Software
534,779.00 126,426.12 258,724.00 47,031.23 196,660.11 338,118.89
buy
Total
648,746,017.11
412,695,502.70
32,048,634.56 - 11,517,458.69
215,519,338.54
433,226,678.57-64-
Note ①： The 1st installment land use right and right to use the terminal were invested as the capital by the Nanshan Group who is the one of
the shareholders for the Company since the year 1984 for the usage period of 25 years and are expired at July 2009. The prepaid rental for venues
for the period of 25 years is recognized as the long-term lease payment from the Nanshan Group who is the one of the shareholders for the
Company. The licenses of usage right for the land which covers the scope of watershed Chiwan ( including the land with 2.2 square kilometers
invested by the Nanshan Group’s shareholder Shenzhen Investment Management Company and the Nanshan Group’s land reclamation plots)
are not achieved yet, due to the historical issues. Until the date of audit report, the Company only has the terminal region map for the above land
and plans. Since the Nanshan Group have not achieved the licenses for the above land usage, it will take the full responsibilities for all the losses,
expenditures and liabilities related to the absence of licenses, which were agreed by the Nanshan Group and the Company on the dates of 18
January 1995 and 18 July 1997.
Note ②： Among this land used by Shanghai Baowan, the licenses for the 2nd and 3rd installment land usage with the original price with
RMB 70,843,112.21Yuan are not achieved yet.
Note ③： This is for the Shenyang Bao Bay land use rights. Since the mineral ballast problem, the land can not meet the project requirements.
Note
④
：This usage right for the land of Longquan Baowan has not achieved its licenses until the 30 June 2009.
b-Until 30 June 2009, there is no such situation as the carrying amount of intangible assets is higher than the net recoverable amount.- 6 5 -
8.11 Deferred tax assets
a- Deferred tax assets details
Items
30 June 2009
RMB
31 December
2008
RMB
Deferred tax assets arising from the
difference between the tax base of an
asset and its carrying value
2,796,005.65
2,796,005.65
Deferred tax assets arising from the
difference between the tax base of a
liability and its carrying value
-
-
Total 2,796,005.65
2,796,005.65
b- Deductible temporary differences
Items
30 June 2009
RMB
31 December 2008
RMB
Accounts receivable 223,004.20
223,004.20
Intangible assets 13,636.18
13,636.18
Organization costs 277,395.80
277,395.80
Loss allowed to be reversed 10,717,314.48
10,717,314.48
Total 11,231,350.66
11,231,350.66
8.12 Other non-current assets
Items
30 June 2009
RMB
31 December 2008
RMB
Lease payment for land and port
（
Note
①）
378,094,260.00 378,094,260.00
Terminal usage fees
（
Note
①）
3,060,000.00 3,060,000.00
Land usage rights paid in
advances
（
Note
②）
46,397,289.80 59,802,289.80
Other
1,194,420.26 -
Total
428,745,970.06 440,956,549.80
Note①：This is the payment for the usage of land paid by the Company in advance,
referring to the Note 8.10. The usage right for the 1st installment land will be expired
in 14 July 2009 invested by the Nanshan Group. The “agreement to use the premises”- 6 6 -
was signed by the Company and Nanshan Group at 18 July 2006. The usage rights
for the land and ports of the Nanshan Group with 315,708.55 square kilometers will
be excised for the period of 25 years between 15 July 2009 to 14 July 2034 by the
Company in the terms of leasing since it is expired at 15 July 2009. The payment for
the usage of land paid in advanced are transferred to intangible assets and amortized
in related beneficial period.
Note②： Thoes payments in advance are related to the land of Nanjing Baowan,
Langfang Baowan, and Guangzhou Baowan, among which the Block A of Guangzhou
Baowan project land is referring to the Notes.
8.13Provision for the impairment losses of assets
Current year reductions
Items
31
December
2008
RMB
Current
year
additions
RMB
Amount
reversed
RMB
Amount
impaired
RMB
Total
RMB
30 June
2009
RMB
Provision for bad
debts
303,619.61
-
- - -
303,619.61
Including
： Accounts
receivables
303,619.61
-
- - -
303,619.61
Other receivables - - - - - -
Total 303,619.61 - - - - 303,619.61
8.14 Short-term borrowings
a- Short-term borrowings details
Items
30 June 2009
RMB
31 December 2008
RMB
Credit loans
470,000,000.00 455,000,000.00
Other loans
400,000,000.00 400,000,000.00
Total
870,000,000.00
855,000,000.00
The entrust loan of RMB 230,000,000.00 Yuan is borrowed from the Nanshan Group
through Merchants Bank by the Company with the period of 1 year from 26
November 2008 to 25 Novermber2009 at the rate of 5.60%.
Other loans are the short-term liquidity financing loans with the amount of RMB 4- 6 7 -
billions Yuan at the rate of 5.6% borrowed from the Nanshan Group with the period
from 3 September 2008 to 31 August 2009.
8.15 Employee benefits payable
Items
31 December
2008
RMB
Accruals
RMB
Payments
RMB
30 June 2009
RMB
Wages or salaries,
bonuses,
allowances,
subsidies
15,281,854.97 23,701,266.91 28,546,281.52 10,436,840.36
Staff welfare
- 103,782.30 104,052.30 -270.00
Social security
contributions
5,528.11 2,443,949.64 2,439,427.27 10,050.48
Union running
costs and
employee
education costs
-35,330.95 693,316.79 284,424.73 373,561.11
Housing Fund
696.15 1,063,845.35 1,064,541.50 -
Total
15,252,748.28
28,006,160.99 32,438,727.32
10,820,181.95
8.16Tax payable
Category of tax
Tax rate
2009
RMB
2008
RMB
VAT
17%
/
6%
-240,042.59 -219,178.41
Sales tax
5%
/
3%
1,134,225.20 1,135,220.59
Income tax
25%
/
18%/2.5%
5,627,521.19 10,037,736.94
Tax for city
maintenance and
construction
7%
、
5%
、
1%
29,599.82
29,957.84
Personal tax
93,071.64 87,626.23
Others
1,369,038.51 701,476.42
Total
8,013,413.77 11,772,839.61
8.17Other payables
a- Other payables details- 6 8 -
Items
30 June 2009
RMB
31 December 2008
RMB
Project fee payable
207,131,473.10
229,538,300.91
Deposits payable
18,703,306.05
16,538,746.30
Land usage fee payable
18,281,200.00
2,583,851.92
Short-term borrowings repayable
124,554,466.09
85,094,238.95
Others
23,426,228.45
24,299,944.91
Total
392,096,673.69 358,055,082.99
b-The short-term borrowing with the amount of RMB 124,554,466.09 Yuan borrowed
from the Company’s shareholders with 51.79% voting shares occupies 31.77% of the
year end balance for other payables at 30 June 2009, referring to the Note 10.3 (6)
8.18 Specific account payable
Items
30 June 2009
31 December 2008
Other
2,000,000.00 -
8.19 Other non-current liabilities
Items
31 December
2008
RMB
Increase
RMB
Current year
transfer into
income
30 June 2009
RMB
Rent 27,577,121.24 1,138,434.78 1,089,429.20 27,626,126.82
Total 27,577,121.24 1,138,434.78 1,089,429.20 27,626,126.82
8.20 Share capital
30 June 2009 31 December 2008
Items
Amounts
RMB
%
Amounts
RMB
%- 6 9 -
30 June 2009 31 December 2008
Items
Amounts
RMB
%
Amounts
RMB
%
Restricted tradable
shares
Sponsors
119,420,000.00 51.79% 119,420,000.00 51.79%
-Domestic legal
person shares
119,420,000.00 51.79% 119,420,000.00 51.79%
Tradable shares of
foreign capital shares
listed domestically
111,180,000.00 48.21% 111,180,000.00 48.21%
Total
230,600,000.00 100.00% 230,600,000.00 100.00%
8.21 Capital reserve
Items
31 December
2008
RMB
Increase
RMB
Decrease
RMB
30 June 2009
RMB
Capital premium
111,367,624.16
- -
111,367,624.16
Other capital surplus
109,272,960.42
-
-
109,272,960.42
Total
220,640,584.58
- -
220,640,584.58
8.22 Surplus reserve
Items
31 December
2008
RMB
Increase
RMB
30 June 2009
RMB- 7 0 -
Statutory surplus
reserves
129,197,846.25
129,197,846.25
Random surplus reserve
51,341,084.09
3,983,671.58 55,324,755.67
Total
180,538,930.34
3,983,671.58 184,522,601.92
Note： The Random surplus reserve for the Company, which is usually proposed by
the Board Meeting and approved by the General Meeting, with the amount of RMB
3,983,671.58 Yuan is decided to make the provision based on the 5% of net profit for
the year 2008 at the year 2009 Board Meeting.
8.23 Operating revenues and costs
a-Operating revenues
Items
2009
RMB
2008
RMB
Main operating revenues
150,799,741.68
137,499,493.82
Other operating revenues
61,017.00
72,647.46
Total of operating revenues
150,860,758.68
137,572,141.28
Main operating costs
53,105,588.64
45,121,434.27
Other operating costs
-
14,569.40
Total of Operating costs
53,105,588.64
45,136,003.67
b-Main operating revenues/costs/profit details
2009
Main operating
revenues
RMB
Main operating
costs
RMB
Main operating
profit
RMB
transporting
315,210.00 332,836.25 -17,626.25
assembling
23,729,463.24 7,291,813.17 16,437,650.07- 7 1 -
2009
Main operating
revenues
RMB
Main operating
costs
RMB
Main operating
profit
RMB
Storage
91,622,052.78 35,192,186.27 56,429,866.51
Port management
21,223,056.47 5,230,797.33 15,992,259.14
Agent
3,545,237.92 2,569,327.88 975,910.04
Office lease
10,364,721.27 2,488,627.74 7,876,093.53
Total
150,799,741.68 53,105,588.64 97,694,153.04
Less：Internal
deduction
- - -
Total
150,799,741.68
53,105,588.64
97,694,153.04
c-Main operating revenues/costs/profit details-continued
2008
Main operating
revenues
RMB
Main operating
costs
RMB
Main operating
profit
RMB
transporting
526,843.00 592,299.73 -65,456.73
assembling
27,263,175.94 5,580,007.41 21,683,168.53
Storage
79,230,037.30 29,830,991.58 49,399,045.72
Port management
20,295,149.99 5,980,928.67 14,314,221.32
Agent
622,755.49 271,827.00 350,928.49
Office lease
9,561,532.10 2,865,379.88 6,696,152.22
Total
137,499,493.82 45,121,434.27 92,378,059.55
Less：Internal
- - -- 7 2 -
2008
Main operating
revenues
RMB
Main operating
costs
RMB
Main operating
profit
RMB
deduction
Total
137,499,493.82
45,121,434.27
92,378,059.55
8.24Business taxes and levies
8.25 Financial expenses
Items
2009
RMB
2008
RMB
Interest expenses
18,446,148.30
21,296,318.69
Less: Interest income
230,048.93
723,754.11
Exchange losses
60.66
300.44
Less:
Exchange income
2,990.10
214,281.23
Others
31,920.28
823,384.28
Total
18,245,090.21 21,181,968.07
8.26 Investment income
Items
2009
RMB
2008
RMB
Chiwan Offshore Petroleum Equipment
Repair and Manufacture Co., Ltd.
481,419.11
372,678.02
Shenzhen Chiwan Sembawang Engineering
Co., Ltd.
9,851,028.40
-7,643,735.23
Others -
100,000.20
Total
10,332,447.51
-7,171,057.01
2009 2008
Items
Rate
Amounts
RMB Rate
Amounts
RMB
Business
tax
3%/5%
6,708,730.89 3%
、
5% 6,046,621.97
Others
247,706.40 186,074.76
Total
6,956,437.29 6,232,696.73- 7 3 -
The main reasons for rise are the better operating results of the associate Sembawang.
8.27 Non-operating income
a- Non-operating income details
Items
2009
RMB
2008
RMB
Gains on disposal of
fixed assets
30,600.00
2,000.00
Government grants
3,000.00
-
Penalty income
200.00
-
Compensation income
14,489.00
1,949.60
Others
65,308.53
19,734.00
Total
113,597.53
23,683.60
b-Government grants
2009 2008
Amount
RMB
Including:
Government grants
recognised in
profit or loss for the
period
RMB
Amount
RMB
Including:
Government grants
recognised in
profit or loss for
the period
RMB
Dependents
resettlement
3,000.00
3,000.00 -
-
Total
3,000.00
3,000.00 -
-
Note
①：
Kunshan Baowan received financial incentives from local Government
。
8.28 Non-operating expenses
2009
RMB
2008
RMB
Losses on disposal of fixed
assets
5,871.41
255,270.91
Endowment spending
91,630.00
713,780.12
Penalty expenses
23,597.62
-
Compensation expenses
27,688.07
4,740.14
Others
2,000.83
5,380.00
Total
150,787.93
979,171.17- 7 4 -
8.29 Income tax expenses
2009
RMB
2008
RMB
Current tax expenses
7,919,403.38
4,932,864.84
Deferred tax expenses
Total
7,919,403.38
4,932,864.84
8.30 Earnings per share
2009
RMB
2008
RMB
Consolidated net profit for the
current period attributable
to ordinary shareholders of the
parent company
53,909,842.23 23,136,050.89
Weighted average number of
ordinary shares issued during
the period
230,600,000.00 230,600,000.00
Basic EPS
0.23 0.10
Diluted EPS
0.23 0.10
8.31 Other cash receipts relating to operating activities
2009
RMB
2008
RMB
Account
payable/receivable
39,460,227.14 -
Others
3,802,334.65 63,776,324.85
Total
43,262,561.79
63,776,324.85
8.32 Other cash payments related operating activities
2009
RMB
2008
RMB
Office expenses
4,157,789.45 5,116,390.19
Others
4,802,893.43 4,290,171.29
Total
8,960,682.88
9,406,561.48
8.33 Supplementary information to the cash flow statement
a- Reconciliation of net profit to cash flow from operating activities
2009
RMB
2008
RMB
(1) Reconciliation of net profit to cash
flow from operating activities- 7 5 -
2009
RMB
2008
RMB
Net profit
51,687,963.72
23,136,050.89
Add: Provision for asset impairment
Depreciation of fixed assets
19,504,826.04
13,905,088.14
Amortisation of intangible assets
11,517,458.69
10,372,236.54
Amortisation of long-term prepaid
expenses
2,566,740.38
4,413,126.14
Losses on disposal of fixed assets,
intangible assets and
other long-term assets (less gains)
Write-off of fixed assets
5,271.41
255,270.91
Losses on changes in fair values (less
gains)
Financial expenses
18,114,452.26
20,572,181.24
Losses arising from investments (less
gains)
-10,332,447.51
7,171,057.01
Decrease in deferred tax assets (less
increase)
）
Increase in deferred tax liabilities (less
decrease)
Decrease in inventories
537,891.77
406,279.55
Decrease in operating receivables (less
increase)
34,302,574.72
23,548,978.97
Increase in operating payables (less
decrease)
-33,009,112.04
-21,004,736.92
Others
1,580,439.82
44,618,829.76
Net cash flow from operating activities
96,476,059.26
127,394,362.23
(2) Significant investing and financing
activities that do not involve
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
72,048,097.19
248,849,431.72
Less: Opening balance of cash
131,387,928.04
84,572,921.25
Add: Closing balance of cash equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash equivalents
-59,339,830.85
164,276,510.47- 7 6 -
b- Cash and cash equivalents
2009
RMB
2008
RMB
(1) Cash
Cash in hand
40,724.57
11,869.87
Bank demand deposits
72,007,372.62
248,837,561.85
Other monetary funds that can be
readily withdrawn on demand
-
-
(2) Cash equivalents
-
-
Including
：
Investments in debt
securities due within three months
-
-
(3)Cash and cash equivalent balances
72,048,097.19
248,849,431.72
Including
：
Restricted cash and cash
equivalents of the Parent Company
and subsidiaries within the Group
-
-
9. NOTES TO THE MAIN ITEMS OF PARENT COMPANY
9.1 Accounts receivables
a- Accounts receivables classified by items
Category
30 June 2009
Amount
RMB
% of total
balance
Provision
for bad
debts
RMB
Carrying
amount
RMB
The
percentage
of the bad
debts
provision
Individually significant
accounts
35,098,167.42 78.24% 183,640.72 34,914,526.70 0.52%
Other insignificant
accounts
9,761,268.66 21.76% - 9,761,268.66 -
Total
44,859,436.08 100% 183,640.72 44,675,795.36
Category
31 December 2008
Amount
RMB
% of total
balance
Provision
for bad
debts
RMB
Carrying
amount
RMB
The
percentage
of the bad
debts
provision- 7 7 -
Individually significant
accounts
10,951,810.87 59.64% 109,518.11 10,842,292.76 1%
Other insignificant
accounts
7,412,261.18 40.36% 74,122.61 7,338,138.57 1%
Total
18,364,072.05 100.00% 183,640.72 18,180,431.33
b-The ageing of accounts receivable and related provisions for bad debts is
analyzed below:
30 June 2009 31 December 2008
Ageing
Amount
RMB
% of total
balance
Provision
for
bad
debts
RMB
Amount
RMB
% of total
balance
Provision
for
bad
debts
RMB
Within 1
year 44,227,078.11 98.59%
17,904,057.37 97.50%
Between 1
and 2 years 334,481.33 0.75%
139,526.79 0.76%
Between 2
and 3 years 201,668.44 0.45%
235,672.54 1.28%
Between 3
and 4 years 96,208.20 0.21% 183,640.72
18,840.00 0.10% 183,640.72
Between 4
and 5 years
65,975.35 0.36%
Total
44,859,436.08 100% 183,640.72 18,364,072.05 100% 183,640.72
c-The list of first fifth larger debtors
The Name of Debtors
Amount
RMB
% of total Ageing
CACT Operators Group
8,284,967.91
18.47%
Within 1 year
Shenzhen Weisheng Offshore
Oil Technology Co.,Ltd
5,862,043.73
13.07%
Within 1 year
ConocoPhillips China Inc.
4,458,784.89
9.94%
Within 1 year
Husky Energy Inc.
3,729,197.88
8.31%
Within 1 year
Weatherford International Ltd.
2,553,054.83
5.69%
Within 1 year
Total
24,888,049.24
55.48%- 7 8 -
e- Accounts receivable above including receivable from related parties 410,929.20
(RMB), accounting for the total amount of accounts receivable to 0.92%.(The
disclosure is in 10.3(f) of NOTES)
f-There are no accounts receivables from shareholders holding over 5% (inclusive) of
the company shares.
9.2 Dividends receivable
Companies
30 June 2009
RMB
31 December 2008
RMB
Shanghai Baowan
30,151,839.10
30,151,839.10
Shenzhen Baowan
6,634,799.66
6,634,799.66
Guangzhou Baowan
474,139.00
474,139.00
Total
37,260,777.76 37,260,777.76
9.3 Other receivables
a- Other receivables classified by items
30 June 2009
Category
Amount
RMB
% of total
balance
Provision
for bad
debts
RMB
Carrying
amount
RMB
Individually significant
receivables 517,859,341.99 99.91% - 517,859,341.99
Other insignificant
receivables 456,317.14 0.09% - 456,317.14
Total
518,315,659.13 100.00% - 518,315,659.13
31 December 2008
Category
Amount
RMB
% of total
balance
Provision
for bad
debts
RMB
Carrying
amount
RMB- 7 9 -
Individually significant
receivables
379,422,083.17 99.01% -
379,422,083.17
Other insignificant
receivables
3,807,844.84 0.99% -
3,807,844.84
Total
383,229,928.01 100.00% - 383,229,928.01
b-The ageing of other receivables and related provisions for bad debts is analyzed
below:
30 June 2009
31 December 2008
Ageing
Amount
RMB
% of total
balance
Provision
for bad
debts
RMB
Amount
RMB
% of
total
balance
Provision
for bad
debts
RMB
Within 1
year 371,373,169.77 71.65%
- 275,777,066.34 71.96% -
Between 1
and 2 years 70,750,087.47 13.65%
- 49,412,805.67 12.89% -
Between 2
and 3 years 23,324,204.66 4.50%
- 11,643,207.92 3.04% -
Between 3
and 4 years 52,868,197.23 10.20%
- 46,396,848.08 12.11% -
Total 518,315,659.13 100.00% - 383,229,928.01 100.00% -
c-The list of first fifth larger debtors
The Name of Debtors
Amount
RMB
% of total
Ageing
BLOGIS(Tianjin)Co.,Ltd
276,635,156.37
53.37%
Within 3 year
BLOGIS(Kunshan)Co.,Ltd
111,081,703.17
21.43%
Within 2 year
BLOGIS(Xindu)Co.,Ltd
67,446,412.89
13.01%
Within 1 year
BLOGIS(Shanghai)Co.,Ltd
40,891,841.06
7.89%
Within 4 year
BLOGIS(Guangzhou)Co.,Ltd 16,271,306.00
3.14%
Within 3 year
Total 512,326,419.49
98.84%- 8 0 -
d- Other receivables at the year end include receivable from related parties up to
RMB516,069,916.31 Yuan , which accounts 99.57%.of the total other receivable
e-There are no other receivables from shareholders holding over 5% (inclusive) of
the Company shares.
9.4 Long-term equity investment
a- Long-term equity investment classified by items
Items
31 December 2008
RMB
Increase
RMB
Decrease
RMB
30 June 2009
RMB
Subsidiary investment
524,153,772.13 -
- 524,153,772.13
Joint venture investment
- - - -
Affiliated investment
279,739,030.03 10,332,447.51
700,000.00 289,371,477.54
Other equity investment
Less: Impairment of
long-term equity
investment
- -
- -
Total
803,892,802.16 10,332,447.51 700,000.00 813,525,249.67
d- Until 30 June 2009, there is no such situation as the carrying amount of
long-term equity investment is higher than the net recoverable amount.
e- The Company does not have any oversea investment. There is no major
restriction for the realization and income remitted of the long-term equity investment.
9.5 Operating revenues and costs
a-Operating revenues
2009
RMB
2008
RMB
Main operating revenues
92,032,895.29
90,994,487.70
Other operating revenues
-
-
Total of operating revenues
92,032,895.29
90,994,487.70
Main operating costs
30,182,493.84
27,530,917.96
Other operating costs
-
-
Total of Operating costs
30,182,493.84
27,530,917.96
b-Main operating revenues/costs/profit details
2009- 8 1 -
Main operating
revenues
RMB
Main
operating costs
RMB
Main operating
profit
RMB
assembling
19,595,498.66 4,563,925.37 15,031,573.29
Storage
40,361,227.96 16,240,000.30 24,121,227.66
Port management
21,223,056.47 5,230,797.33 15,992,259.14
Agent
2,339,362.93 1,973,783.32 365,579.61
Office lease
8,513,749.27 2,173,987.52 6,339,761.75
Total
92,032,895.29 30,182,493.84 61,850,401.45
b-Main operating revenues/costs/profit details-continued
2008
Main operating
revenues
RMB
Main
operating costs
RMB
Main
operating
profit
RMB
Storage
23,920,863.07 3,634,712.28 20,286,150.79
Port management
40,302,443.40 16,195,410.42 24,107,032.98
Agent
20,295,149.99 5,980,928.67 14,314,221.32
Office lease
6,476,031.24 1,719,866.59 4,756,164.65
Total
90,994,487.70 27,530,917.96 63,463,569.74
c- The amount of operating income from the top five customers was RMB
47,374,426.23 Yuan, which accounts for 51.48% of the total operating income.
9.6 Investment income
2009
RMB
2008
RMB
Chiwan Offshore Petroleum Equipment
Repair and Manufacture Co., Ltd.
481,419.11
372,678.02
Shenzhen Chiwan Sembawang
Engineering Co., Ltd.
9,851,028.40
-7,643,735.23
Others
481,419.11
372,678.02
Total
10,332,447.51
-7,171,057.01- 8 2 -
9.7 Supplementary information to the cash flow statement
a- Reconciliation of net profit to cash flow from operating activities
2009
RMB
2008
RMB
(1) Reconciliation of net profit to cash
flow from operating activities
：
Net profit
35,618,365.63
9,021,995.12
Add: Provision for asset impairment
-
-
Depreciation of fixed assets
5,161,834.53
5,733,678.87
Amortization of intangible assets
7,179,225.83
7,148,657.16
Amortization of long-term prepaid
expenses 611,175.20
1,587,446.52
Losses on disposal of fixed assets,
intangible assets and
other long-term assets (less gains) -
-
Write-off of fixed assets
5,271.41
254,320.91
Losses on changes in fair values (less
gains) -
-
Financial expenses
11,570,886.85
20,175,019.74
Losses arising from investments (less
gains) -10,332,447.51
7,171,057.01
Decrease in deferred tax assets (less
increase)
）
-
-
Increase in deferred tax liabilities (less
decrease) -
-
Decrease in inventories
515,115.01
476,067.87
Decrease in operating receivables (less
increase) 9,940,537.22
-2,465,632.93
Increase in operating payables (less
decrease) 31,510,810.71
3,050,781.07
Others
3,654,426.61
3,094,955.06
Net cash flow from operating activities
95,435,201.49
55,248,346.40
b- Cash and cash equivalents
2009
RMB
2008
RMB
Net changes in cash and cash
equivalents:
Closing balance of cash
60,194,326.03
237,393,397.94
Less: Opening balance of cash
80,240,914.36
76,940,780.32
Add: Closing balance of cash equivalents
-
-
Less: Opening balance of cash
equivalents
-
-- 8 3 -
Net increase in cash and cash equivalents
-20,046,588.33
160,452,617.62
10. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
10. 1Related party relationships
a-Identification standard of related parties
If a party has the power to control, jointly control or exercise significant influence
over another party, they are regarded as related parties. Two or more parties are also
regarded as related parties if they are subject to control, joint control or significant
influence from the same party.
b-Parent company of the Company
Parent
company
name
Organisation
code
Place of
registration
Nature of
business
Registered
capital
Proportion of
shareholdings
Proportion
of voting
power
Nanshan
group
618832976
Shenzhen,
Guangdong
province
Land
development/
Port
transportation
500,000,000.00
RMBYuan
51.79% 51.79%
c- Subsidiaries of the Company
Please see Note 7.2(1) for details of the subsidiaries.
d- The following are other related parties which have transactions with the
Company while no control relationship exists:
Organisation
code Related party relationships
Shenzhen Chiwan Sembawang
Engineering Co., Ltd.
61880960-2 Associated companies
Chiwan Offshore Petroleum
Equipment Repair and Manufacture
Co., Ltd.
61887962-7 Associated companies
Shenzhen Chiwan Wharf Holdings
Co.,Ltd
61883296-8
Controlled by the same
parent company
Shenzhen Nanshan Development
Incorporation
61883297-6
Controlled by the same
parent company
Chixiao Enterprises Co.,Ltd.
78833212-2 Controlled by the same- 8 4 -
parent company
Shenzhen Chixiao Project
Construction Co.,Ltd
61883136-7
Subsidiary of Chixiao
Enterprises Co.,Ltd.
Shenzhen Chixiao Building
Technology Co.,Ltd
（
Note
①）
61881595-7
Subsidiary of Chixiao
Enterprises Co.,Ltd.
Shenzhen Chiwan Cargo Co.,Ltd
61883349-3
Subsidiary of Shenzhen
Chiwan Wharf Holdings Ltd
Chiwan Container Terminal
Co.,Ltd(CCT
）
61881700-4
Subsidiary of Shenzhen
Chiwan Wharf Holdings Ltd
Shenzhen Chiwan Eastern Logistics
Ltd.
72616516-2
Subsidiary of Shenzhen
Chiwan Wharf Holdings Ltd
Note①：The name of“Shenzhen Component House Co.,Ltd”has been changed
to“Shenzhen Chixiao Building Technology Co.,Ltd on 18 September, 2008.
10.2 Pricing policies
The company's pricing policies on the services provided or received to related parties,
or the rental services are based on the terms from negotiation between both parties.
10.3 Related party transactions
a- Labor services received
2009
RMB
2008
RMB
Nanshan group
7,566,561.91
5,640,621.00
Shenzhen Chixiao Building Technology Co.,Ltd
26,217,833.98 8,926,910.00
Shenzhen Chixiao Project Construction Co.,Ltd
244,080.00 -
Shenzhen Chiwan Wharf Holdings Co.,Ltd
1,345.00 -
Shenzhen Chiwan Cargo Co.,Ltd
- 5,459,018.00
Total
34,029,820.89 20,026,549.00
1) The East Heights Land (including 109,473 square meters of land at the east of
Chiwan first road) leased from the Nanshan by the Group, is used as the base- 8 5 -
supporting land for main business of oil and its logistics, with the lease period of 20
years since 1st September, 2006 until 31st August 2026.
b-Supplies of services
2009
RMB
2008
RMB
Shenzhen Nanshan Development
Incorporation
427,933.80 -
Shenzhen Chiwan Cargo Co.,Ltd
124,713.60 -
Shenzhen Chiwan Wharf Holdings
Co.,Ltd
855,894.00 773,103.00
Nanshan group
1,718,469.56 2,107,798.00
Chiwan Offshore Petroleum
Equipment Repair and Manufacture
Co., Ltd.
1,119,942.22 866,340.00
Shenzhen Chiwan Sembawang
Engineering Co., Ltd.
731,564.94 2,276,513.00
Total
4,978,518.12 6,023,754.00
c- Other significant transactions between the Company and related parties in the
year:
Type of
transaction
2009
RMB
2008
RMB
Notes
Nanshan group
Financing bill.
11,262,222.23 6,797,666.68
Nanshan group
Entrusted loan
6,433,916.66 6,650,333.34
1)The short-term liquidity financing loans with the amount of RMB 4 billions Yuan
at the rate of 5.6% is borrowed from the Nanshan Group, which related interest is
RMB 16,920,333.37 Yuan.
2）The entrust loan with the amount of RMB 230,000,000.00 Yuan is borrowed form
the Nanshan Group through Merchants Bank with the period of 1 year from 25
November 2008 to 25 November 2009 at the rate of 5.6%. The interest of entrust loan
payable is RMB11,015,030.61 Yuan for the year 2008.- 8 6 -
d- Balance due to/from related parties
Items
30 June 2009
RMB
31 December
2008
RMB
Conditions
Securited
or not
Accounts receivable
Shenzhen Chiwan Sembawang
Engineering Co., Ltd.
338,375.33 618,639.88
Chiwan Offshore Petroleum
Equipment Repair and
Manufacture Co., Ltd.
680,200.60 744,215.10
Nanshan group
268,862.70 -
Shenzhen Chiwan Wharf
Holdings Co.,Ltd
142,066.50 -
Accounts receivable total
1,429,505.13 1,362,854.98
Provision for accounts
receivable
Shenzhen Chiwan Sembawang
Engineering Co., Ltd.
6,186.40 6,186.40
Chiwan Offshore Petroleum
Equipment Repair and
Manufacture Co., Ltd.
7,442.15 7,442.15
Provision for accounts
receivable total
13,628.55 13,628.55
Accounts payable
Shenzhen Chixiao Building
Technology Co.,Ltd
40,592.00 40,592.00
Shenzhen Chixiao Project
Construction Co.,Ltd
60,000.00 60,000.00
Shenzhen Xuqin Co.,Ltd
3,913.81
Accounts payable total
104,505.81 100,592.00
Other payables
Nanshan group
124,814,916.92 85,432,947.63
Chiwan Offshore Petroleum
Equipment Repair and
Manufacture Co., Ltd.
185,687.64 185,787.64
Shenzhen Chiwan Wharf
Holdings Co.,Ltd
214,920.00 172,403.43
Shenzhen Chiwan Eastern
Logistics Ltd.
16,652.51 16,652.51
Shenzhen Nanshan
Development Incorporation
59,818.66 28,877.38
Shenzhen Chixiao Building
Technology Co.,Ltd
113,625.00 19,338,613.40- 8 7 -
Items
30 June 2009
RMB
31 December
2008
RMB
Conditions
Securited
or not
Shenzhen Chixiao Project
Construction Co.,Ltd
- 508,503.68
Chixiao Enterprises Co.,Ltd.
18,422.64 18,422.64
Other payables total
125,405,620.73 105,702,208.31
Interest payable
Nanshan group
980,000.01 1,077,999.99
Other non-current assets
Nanshan group 381,154,260.00 381,154,260.00
Short-term Borrowings
Nanshan group 630,000,000.00 630,000,000.00
Total 1,012,134,260.
01
1,012,232,259.9
9- 8 8 -
SUPPLEMENTARY INFORMATION
Relevant financial indicators
The return on net assets and EPS has been prepared by the Company in accordance
with “Public Offering Made for Securities Companies about Information disclosure
and Presentation Rules No. 9 - Calculation and disclosure of Return on Net Assets
and Earnings per Share” issued by China Securities Regulatory commission.
Return on net
assets
（
%
）
Earnings per share
（
RMB Yuan/per
share
）
Profit for the reporting period
Reporting
period Fully
diluted
RMB
Weighted
Average
RMB
Basic EPS
Diluted
EPS
the year ended
30 June 2008
Calculated based on net 2.78 2.62 0.10 0.10
profit attributable to
ordinary equity holders
the year ended
30 June 2009
5.99 5.95 0.23 0.23
the year ended
30 June 2008
2.81 2.64 0.10 0.10
Calculated based on net profit
attributable to ordinary equity
holders after extraordinary gains
and losses
the year ended
30 June 2009
5.99 5.95 0.23 0.23
