SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
CONTENTS Pages
THE CONSOLIDATED AND COMPANY BALANCE SHEETS 2 - 3
THE CONSOLIDATED AND COMPANY INCOME STATEMENTS 4 - 5
THE CONSOLIDATED AND COMPANY CASH FLOW STATEMENTS 6 - 7
THE CONSOLIDATED AND COMPANY STATEMENTS OF CHANGES IN
SHAREHOLDERS' EQUITY 8 - 9
NOTES TO THE FINANCIAL STATEMENTS 10 - 119
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
AT 30 JUNE 2018
Consolidated Balance Sheet
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Notes|Closing balance|Opening balance|Item|Notes|Closing balance|Opening balance|
|||||LIABILITIES AND||||
|ASSETS||||||||
|||||SHAREHOLDERS' EQUITY||||
|Current assets:||||Current liabilities:||||
||(V)1|468,287,526.00|818,193,679.32||(V)21|501,758,000.00|-|
|Cash and bank balances||||Short-term borrowings||||
|Notes receivable|(V)2|-|500,000.00|Accounts payable|(V)22|105,261,259.62|131,837,865.23|
|Accounts receivable|(V)3|307,047,142.75|257,081,961.83|Receipts in advance|(V)23|16,147,389.17|56,571,454.49|
|Prepayments|(V)4|2,374,910.59|4,354,830.16|Employee benefits payable|(V)24|60,684,157.98|95,361,472.09|
|Interest receivable|(V)5|95,277.78|1,175,305.39|Taxes payable|(V)25|86,884,187.10|96,453,101.66|
|Dividends receivable|(V)6|-|-|Interest payable|(V)26|8,998,745.37|3,678,493.15|
|Other receivables|(V)7|17,220,164.87|21,209,538.29|Dividends payable|(V)27|165,955,102.54|263,384,499.42|
|Inventories|(V)8|16,490,966.83|21,862,480.10|Other payables|(V)28|72,503,833.26|138,012,498.12|
|Other current assets|(V)9|24,561,374.56|33,491,432.18|Other current liabilities|(V)29|200,000,000.00|100,000,000.00|
|Total current assets||836,077,363.38|1,157,869,227.27|Total current liabilities||1,218,192,675.04|885,299,384.16|
|Non-current Assets:||||Non-current Liabilities:||||
|Available-for-sale|(V)10|-|23,759,200.00||(V)30|299,229,041.07|298,931,506.83|
|||||Bonds payable||||
|financial assets||||||||
|Other investments in|(V)11|146,463,840.00|-||(V)31|-|25,000,000.00|
|||||Long-term payables||||
|equity instruments||||||||
|Long-term equity|(V)12|1,561,072,828.11|1,152,620,039.97||(V)32|28,209,108.38|32,563,422.41|
|||||Special payables||||
|investments||||||||
|Investment properties|(V)13|22,408,165.65|22,821,081.69|Deferred income|(V)33|153,051,500.28|156,048,997.49|
|Fixed assets|(V)14|3,078,827,210.28|3,929,355,718.60|Deferred tax liabilities|(V)19|32,858,660.00|10,584,342.80|
|Construction in progress|(V)15|67,674,438.64|86,317,666.70|Total non-current liabilities||513,348,309.73|523,128,269.53|
|Intangible assets|(V)16|957,084,841.87|1,350,224,998.54|TOTAL LIABILITIES||1,731,540,984.77|1,408,427,653.69|
||(V)17|10,858,898.17|10,858,898.17|SHAREHOLDERS'||||
|Goodwill||||||||
|||||EQUITY:||||
|Long-term prepaid|(V)18|51,803,814.59|98,278,001.09||(V)34|644,763,730.00|644,763,730.00|
|||||Share capital||||
|expenses||||||||
|Deferred tax assets|(V)19|10,753,068.89|11,031,026.43|Capital reserve|(V)35|167,480,381.25|167,480,381.25|
|Other non-current assets|(V)20|285,561,664.28|132,334,704.86|Other comprehensive income|(V)36|111,828,824.49|19,800,344.49|
|Total non-current assets||6,192,508,770.48|6,817,601,336.05|Special reserve|(V)37|8,314,754.88|4,767,373.45|
|||||Surplus reserve|(V)38|520,074,434.56|520,074,434.56|
|||||Unappropriated profit|(V)39|3,031,700,072.97|3,566,083,142.17|
|||||Total shareholders' equity||4,484,162,198.15|4,922,969,405.92|
|||||attributable to equity holders of||||
|||||the parent||||
|||||Minority interests||812,882,950.94|1,644,073,503.71|
|||||TOTAL SHAREHOLDERS'||5,297,045,149.09|6,567,042,909.63|
|||||EQUITY||||
|||7,028,586,133.86|7,975,470,563.32|TOTAL LIABILITIES AND||7,028,586,133.86|7,975,470,563.32|
|TOTAL ASSETS||||||||
|||||SHAREHOLDERS' EQUITY||||

The accompanying notes form part of the financial statements.
The financial statements on pages 2 to 119 were signed by the following:
LegalRepresentative：Bai Jingtao
Chief FinancialOfficer：Yao Shenglan
Head of AccountingDepartment：Li Xiaopeng
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
AT 30 JUNE 2018
Balance Sheet of the Company
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Note|Closing balance|Opening balance|Item|Note|Closing balance|Opening balance|
|||||LIABILITIES AND||||
|ASSETS||||SHAREHOLDERS'||||
|||||EQUITY||||
|Current Assets:||||Current Liabilities:||||
|Cash and bank||97,869,776.30|230,039,345.73|||501,758,000.00|-|
|||||Short-term borrowings||||
|balances||||||||
||(XIV)1|23,418,326.13|12,987,394.84|||13,576,628.07|18,376,556.53|
|Accounts receivable||||Accounts payable||||
|||-|-|||85,650.00|98,400.00|
|Prepayments||||Receipts in advance||||
|||191,552,301.40|589,478,376.49|||40,618,586.08|51,689,614.60|
|Dividends receivable||||Employee benefits payable||||
||(XIV)2|413,351,630.81|583,090,959.69|||861,248.10|1,578,674.01|
|Other receivables||||Taxes payable||||
|||389,771.06|415,163.18|||13,256,065.95|8,010,008.11|
|Inventories||||Interest payable||||
|||1,185,221.69|2,210,653.66|||37,608,540.65|37,608,540.65|
|Other current assets||||Dividends payable||||
|||727,767,027.39|1,418,221,893.59|||500,180,624.02|834,923,800.53|
|Total current assets||||Other payables||||
|||||||200,000,000.00|100,000,000.00|
|Non-current Assets:||||Other current liabilities||||
|Available-for-sale||-|23,759,200.00|||1,307,945,342.87|1,052,285,594.43|
|||||Total current liabilities||||
|financial assets||||||||
|Other investments in||146,463,840.00|-|||||
|||||Non-current Liabilities:||||
|equity instruments||||||||
|||11,004,284.75|11,004,284.75|||299,229,041.07|298,931,506.83|
|Long-term receivables||||Bonds payable||||
|Long-term equity|(XIV)3|2,215,018,137.80|2,215,952,842.62|||150,386,000.00|150,098,000.00|
|||||Long-term payables||||
|investments||||||||
|||12,875,095.62|13,116,783.72|||32,858,660.00|2,182,500.00|
|Investment property||||Deferred tax liabilities||||
|||201,727,344.65|204,839,343.34|||482,473,701.07|451,212,006.83|
|Fixed assets||||Total non-current liabilities||||
|Construction in||9,823,376.20|10,631,762.77|||1,790,419,043.94|1,503,497,601.26|
|||||TOTAL LIABILITIES||||
|progress||||||||
|||58,516,469.53|59,954,618.20|SHAREHOLDERS'||||
|Intangible assets||||||||
|||||EQUITY||||
|Long-term prepaid||3,864,672.16|3,976,969.45|||644,763,730.00|644,763,730.00|
|||||Share capital||||
|expenses||||||||
|Other non-current||149,709,800.00|-|||240,001,254.59|240,001,254.59|
|||||Capital reserve||||
|assets||||||||
|Total non-current||2,809,003,020.71|2,543,235,804.85|||98,675,980.00|6,647,500.00|
|||||Other comprehensive income||||
|assets||||||||
|||||||211,707.86|-|
|||||Special reserve||||
|||||||520,074,434.56|520,074,434.56|
|||||Surplus reserve||||
|||||||242,623,897.15|1,046,473,178.03|
|||||Unappropriated profit||||
|||||TOTAL SHAREHOLDERS'||1,746,351,004.16|2,457,960,097.18|
|||||EQUITY||||
|||3,536,770,048.10|3,961,457,698.44|TOTAL LIABILITIES AND||3,536,770,048.10|3,961,457,698.44|
|TOTAL ASSETS||||SHAREHOLDERS'||||
|||||EQUITY||||

The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Consolidated Income Statement
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Amount incurred in|
|||||Amount incurred in||the prior period|
|Item||Note||the current period||(restated)|
|I. Operating income|(V)40||1,246,135,516.34||1,176,651,017.99||
|Less: Operating costs|(V)40||669,139,867.98||682,744,597.73||
|Business taxes and levies|(V)41||6,180,992.33||6,376,744.50||
|Administrative expenses|(V)42||87,636,508.75||77,908,036.28||
|Financial expenses|(V)43||17,869,102.88||13,274,775.13||
|Impairment losses of assets|(V)44||360,407.86||(2,075,271.78)||
|Add: Investment income|(V)44||53,469,837.14||46,292,845.60||
|Including: Income from investments in associates and joint|(V)45||45,680,862.14||36,875,845.60||
|ventures|||||||
|Gains (losses) on disposal of assets|(V)46||19,702.38||293,053.57||
|Other income|(V)47||969,240.75||-||
|II. Operating profit|||519,407,416.81||445,008,035.30||
|Add: Non-operating income|(V)48||2,902,652.25||2,326,565.47||
|Less: Non-operating expenses|(V)49||3,449,926.69||803,640.73||
|III. Gross profit|||518,860,142.37||446,530,960.04||
|Less: Income tax expenses|(V)50||75,484,671.73||72,860,139.44||
|IV. Net profit|||443,375,470.64||373,670,820.60||
|(I) Categorization by continuity of operation|||||||
|1.Net profit of continued operation|||443,375,470.64||373,670,820.60||
|2.Net profit of discontinued operation|||-||-||
|(II) Categorization by attribution of ownership|||||||
|1.Net profit attributable to shareholders of the parent|||316,060,290.67||276,061,357.50||
|2.Profit or loss attributable to minority shareholder|||127,315,179.97||97,609,463.10||
|V. Amount of Other Comprehensive Net Income After Tax:|(V)51||(585,000.00)||937,500.00||
|Amount of other comprehensive net income after tax attributable to|||(585,000.00)||937,500.00||
|equity holders of the parent|||||||
|(I) Other comprehensive income that will not be reclassified|||(585,000.00)||-||
|subsequently to profit or loss|||||||
|1.Change as a result of remeasurement of the net defined benefit plan|||-||-||
|liability or asset|||||||
|2.Share of other comprehensive income of the investee under the|||-||-||
|equity method that will not be reclassified to profit or loss|||||||
|3. Fair value changes of other investments in equity instruments that|||(585,000.00)||-||
|can't be reclassified to profit or loss|||||||
|(II) Other comprehensive income that will be reclassified|||-||937,500.00||
|subsequently to profit or loss|||||||
|1.Share of other comprehensive income of the investee under the|||-||-||
|equity method that will be reclassified to profit or loss|||||||
|2.Gains or losses on changes in fair value of available-for-sale|||-||937,500.00||
|financial assets|||||||
|3.Translation differences of financial statements denominated in|||-||-||
|foreign currencies|||||||
|Amount of other comprehensive net income after tax attributable to|||-||-||
|minority shareholders|||||||
|VI. Total comprehensive income attributable to:|||442,790,470.64||374,608,320.60||
|Shareholders of the parent|||315,475,290.67||276,998,857.50||
|Minority shareholders|||127,315,179.97||97,609,463.10||
|VII. Earnings per share:|||||||
|(I) Basic earnings per share|||0.490||0.428||
|(II) Diluted earnings per share|||0.490||0.428||

The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Income Statement of the Company
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Amount incurred in||Amount incurred in|
|Item||Note||the current period||the prior period|
|I. Operating income|(XIV)4||119,422,977.47||120,036,337.34||
|Less: Operating costs|(XIV)4||66,904,086.32||61,993,764.64||
|Business taxes and levies|||1,668,896.31||1,295,149.90||
|Administrative expenses|||37,663,434.34||30,763,723.53||
|Financial expenses|||11,394,012.23||(3,567,095.64)||
|Impairment losses of assets|||-||(7,730.22)||
|Add: Investment income|(XIV)5||45,416,275.00||43,578,170.47||
|Including: Income from investments in associates and joint|(XIV)5||37,627,300.00||34,161,170.47||
|ventures|||||||
|Gains on disposal of assets|||(934,006.99)||304,464.57||
|II. Operating profit|||46,274,816.28||73,441,160.17||
|Add: Non-operating income|||834,286.15||246,731.78||
|Less: Non-operating expenses|||119,250.11||224,356.40||
|III. Gross profit|||46,989,852.32||73,463,535.55||
|Less: Income tax expenses|||395,773.33||(396,443.74)||
|IV. Net profit|||46,594,078.99||73,859,979.29||
|V. Amount of Other Comprehensive Net Income After Tax:|||(585,000.00)||937,500.00||
|(I) Other comprehensive income that will not be reclassified|||(585,000.00)||-||
|subsequently to profit or loss|||||||
|(i) Change as a result of remeasurement of the net defined benefit|||-||-||
|plan liability or asset|||||||
|(ii) Share of other comprehensive income of the investee under the|||-||-||
|equity method that will not be reclassified to profit or loss|||||||
|(iii) Fair value changes of other equity instruments that can't be|||(585,000.00)||-||
|reclassified to profit or loss|||||||
|(II) Other comprehensive income that will be reclassified|||-||937,500.00||
|subsequently to profit or loss|||||||
|(i) Share of other comprehensive income of the investee under|||-||-||
|the equity method that will be reclassified to profit or loss|||||||
|(ii) Gains or losses on changes in fair value of available-for-|||-||937,500.00||
|sale financial assets|||||||
|(iii) Translation differences of financial statements|||-||-||
|denominated in foreign currencies|||||||
|VI. Total comprehensive income attributable to:|||46,009,078.99||74,797,479.29||

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Consolidated Cash Flow Statement
Unit: RMB
|||||
|-|-|-|-|
||||Amount incurred in|
|||Amount incurred in|the prior period|
|Item|Note|the current period|(restated)|
|I. Cash Flows from Operating Activities:||||
|Cash receipts from sales of goods and rendering of services||1,079,981,614.42|1,252,629,719.76|
|Other cash receipts relating to operating activities|(V)53(1)|35,355,262.02|43,509,092.43|
|Sub-total of cash inflows||1,115,336,876.44|1,296,138,812.19|
|Cash payments for goods purchased and services received||371,777,653.02|367,373,420.77|
|Cash payments to and on behalf of employees||246,499,962.13|230,356,972.62|
|Payments of all types of taxes||87,459,003.05|82,664,952.95|
|Other cash payments relating to operating activities|(V)53(2)|60,425,384.56|41,187,933.82|
|Sub-total of cash outflows||766,162,002.76|721,583,280.16|
|Net Cash Flows from Operating Activities|(V)54(1)|349,174,873.68|574,555,532.03|
|II. Cash Flows from Investing Activities:||||
|Cash receipts from investments income||46,350,979.83|63,156,674.42|
|Net cash receipts from disposal of fixed assets, intangible assets||1,471,757.92|2,650,703.87|
|and other long-term assets||||
|Other cash receipts relating to investing activities|(V)53(3)|500,000.00|128,500,000.00|
|Sub-total of cash inflows||48,322,737.75|194,307,378.29|
|Cash payments to acquire or construct fixed assets, intangible||89,747,611.32|92,607,682.80|
|assets and other long-term assets||||
|Net cash payment to acquire subsidiary and other operating|(V)53(4)|149,709,800.00|-|
|units||||
|Other cash payments relating to investing activities|(V)53(5)|203,758,566.92|180,000,000.00|
|Sub-total of cash outflows||443,215,978.24|272,607,682.80|
|Net Cash Flows from Investing Activities||(394,893,240.49)|(78,300,304.51)|
|III. Cash Flows from Financing Activities:||||
|Cash receipts from borrowings||636,758,000.00|30,000,000.00|
|Cash receipts from issue of bonds||200,000,000.00|-|
|Sub-total of cash inflows||836,758,000.00|30,000,000.00|
|Cash repayments of borrowings||170,000,000.00|366,270,000.00|
|||953,421,273.12|46,178,041.65|
|Cash payments for distribution of dividends or profit or interest||||
|Including: Payments for distribution of dividends or profit to||97,429,396.88|35,966,600.94|
|minorities||||
|Other cash payments relating to financing activities|(V)53(6)|663,373.11|15,792.33|
|Sub-total of cash outflows||1,124,084,646.23|412,463,833.98|
|Net Cash Flows from Financing Activities||(287,326,646.23)|(382,463,833.98)|
|IV. Effect of Foreign Exchange Rate Changes on Cash and||(16,861,140.28)|(4,935,763.98)|
|CVa. shN et Increase (Decrease) in Cash and Cash Equivalents||(349,906,153.32)|108,855,629.56|
|Add: Opening balance of Cash and Cash Equivalents|(V)54(2)|818,193,679.32|542,079,799.39|
|VI. Closing Balance of Cash and Cash Equivalents|(V)54(2)|468,287,526.00|650,935,428.95|

The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Cash Flow Statement of the Company
Unit: RMB
|||||
|-|-|-|-|
|||Amount incurred in|Amount incurred in|
|Item|Note|the current period|the prior period|
|I. Cash Flows from Operating Activities:||||
|Cash receipts from sales of goods and rendering of services||107,636,176.67|114,863,518.00|
|Other cash receipts relating to operating activities||230,346,187.55|424,203,588.78|
|Sub-total of cash inflows||337,982,364.22|539,067,106.78|
|Cash payments for goods purchased and services received||35,630,528.08|31,930,629.72|
|Cash payments to and on behalf of employees||68,710,981.15|61,467,607.51|
|Payments of all types of taxes||3,485,828.13|4,414,781.60|
|Other cash payments relating to operating activities||388,259,171.05|457,615,731.81|
|Sub-total of cash outflows||496,086,508.41|555,428,750.64|
|Net Cash Flows from Operating Activities||(158,104,144.19)|(16,361,643.86)|
|II. Cash Flows from Investing Activities:||||
|Cash receipts from investments income||444,277,054.92|197,859,462.18|
|||178,876.00|2,693,776.59|
|Net cash receipts from disposal of fixed assets, intangible assets||||
|and other long-term assets||||
|Sub-total of cash inflows||444,455,930.92|200,553,238.77|
|Cash payments to acquire or construct fixed assets, intangible||5,461,752.50|3,621,231.58|
|assets and other long-term assets||||
|Net cash payment to acquire subsidiary and other operating||149,709,800.00|-|
|units||||
|Sub-total of cash outflows||155,171,552.50|3,621,231.58|
|Net Cash Flows from Investing Activities||289,284,378.42|196,932,007.19|
|III. Cash Flows from Financing Activities:||||
|Cash receipts from borrowings||571,758,000.00|64,715,999.99|
|Cash receipts from issue of bonds||200,000,000.00|-|
|Sub-total of cash inflows||771,758,000.00|64,715,999.99|
|Cash repayments of borrowings||170,000,000.00|280,000,000.00|
|Cash payments for distribution of dividends or profit or interest||855,728,376.23|4,933,219.18|
|Other cash payments relating to financing activities||663,373.11|15,792.33|
|Sub-total of cash outflows||1,026,391,749.34|284,949,011.51|
|Net Cash Flows from Financing Activities||(254,633,749.34)|(220,233,011.52)|
|IV. Effect of Foreign Exchange Rate Changes on Cash and||(8,716,054.32)|650,899.12|
|CVa. shN et Increase (Decrease) in Cash and Cash Equivalents||(132,169,569.43)|(39,011,749.07)|
|Add: Opening balance of Cash and Cash Equivalents||230,039,345.73|97,401,657.09|
|VI. Closing Balance of Cash and Cash Equivalents||97,869,776.30|58,389,908.02|

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Consolidated Statement of Changes in Shareholders' Equity
Unit: RMB
||||||||||||||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||2018||||||||||||||||||2017 (restated)|||||||||||||||||
|||||Attributable to shareholders of the parent||||||||||||||||||Attributable to shareholders of the parent|||||||||||||||||
|||||||||Other||||||||||||Total||||||Other||||||||||||Total|
|||||||Capital||comprehensive||||Surplus||Unappropriated||||Minority||shareholders'||||Capital||comprehensive||||Surplus||Unappropriated||||Minority||shareholders'|
||Item|||Share capital||reserve||income||Special reserve||reserve||profit||Others||interests||equity||Share capital||reserve||income||Special reserve||reserve||profit||Others||interests||equity|
|I.|Closing balance of the||644,763,730.00||167,480,381.25||19,800,344.49||4,767,373.45||520,074,434.56||3,566,083,142.17||-||1,644,073,503.71||6,567,042,909.63||644,763,730.00||167,480,381.25||(8,039,646.43)||4,145,765.65||520,074,434.56||3,381,390,887.86||-||927,178,183.53||5,636,993,736.42||
||preceding year||||||||||||||||||||||||||||||||||||||
|A|dd: Changes in accounting||-||-||92,613,480.00||-||-||-||-||-||92,613,480.00||-||-||-||-||-||-||-||-||-||
||policies||||||||||||||||||||||||||||||||||||||
||Corrections of prior perio|d|-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||errors||||||||||||||||||||||||||||||||||||||
||Business combination||-||-||-||-||-||-||-||-||-||-||-||26,864,990.92||-||-||-||-||819,886,841.52||846,751,832.44||
||involving enterprises||||||||||||||||||||||||||||||||||||||
|under common controlOthers|||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|II. Opening balance of the year|||644,763,730.00||167,480,381.25||112,413,824.49||4,767,373.45||520,074,434.56||3,566,083,142.17||-||1,644,073,503.71||6,659,656,389.63||644,763,730.00||167,480,381.25||18,825,344.49||4,145,765.65||520,074,434.56||3,381,390,887.86||-||1,747,065,025.05||6,483,745,568.86||
|III. Changes for the year|||-||-||(585,000.00)||3,547,381.43||-||(534,383,069.20)||-||(831,190,552.77)||(1,362,611,240.54)||-||-||975,000.00||621,607.80||-||184,692,254.31||-||(102,991,521.34)||83,297,340.77||
|(I) Total comprehensive income|||-||-||(585,000.00)||-||-||316,060,290.67||-||127,315,179.97||442,790,470.64||-||-||975,000.00||-||-||504,495,064.39||-||209,363,710.68||714,833,775.07||
|(I|I) Owners' contributions and||-||-||-||(575,472.95)||-||-||-||(906,835,138.81)||(907,410,611.76)||-||-||-||-||-||-||-||-||-||
||reduction in capital||||||||||||||||||||||||||||||||||||||
|1|．Capital contribution from||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||shareholders||||||||||||||||||||||||||||||||||||||
|2|．Share-based payment||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||recognized in shareholders'||||||||||||||||||||||||||||||||||||||
|3|equity．Others||-||-||-||(575,472.95)||-||-||-||(906,835,138.81)||(907,410,611.76)||-||-||-||-||-||-||-||-||-||
|(III) Profit distribution|||-||-||-||-||-||(850,443,359.87)||-||(53,593,466.00)||(904,036,825.87)||-||-||-||-||-||(319,802,810.08)||-||(312,431,865.50)||(632,234,675.58)||
|1|．Transfer to surplus reserve||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|2|．Transfer to general reserve||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|3|．Distributions to||-||-||-||-||-||(850,443,359.87)||-||(53,593,466.00)||(904,036,825.87)||-||-||-||-||-||(319,802,810.08)||-||(312,431,865.50)||(632,234,675.58)||
||shareholders||||||||||||||||||||||||||||||||||||||
|4|．Others||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|(Is|V) Transfers within||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||hareholders' equity||||||||||||||||||||||||||||||||||||||
|1|．Capitalization of capital||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||reserve||||||||||||||||||||||||||||||||||||||
|2|．Capitalization of surplus||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||reserve||||||||||||||||||||||||||||||||||||||
|3|．Loss made up by surplus||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||reserve||||||||||||||||||||||||||||||||||||||
|4|．Others||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|(V) Special reserve|||-||-||-||4,122,854.38||-||-||-||1,922,872.07||6,045,726.45||-||-||-||621,607.80||-||-||-||76,633.48||698,241.28||
|1|．Withdrawn in the period||-||-||-||10,442,630.90||-||-||-||4,899,308.78||15,341,939.68||-||-||-||17,456,696.76||-||-||-||7,404,742.09||24,861,438.85||
|2|．Utilized in the period||-||-||-||(6,319,776.52)||-||-||-||(2,976,436.71)||(9,296,213.23)||-||-||-||(16,835,088.96)||-||-||-||(7,328,108.61)||(24,163,197.57)||
|(VI) Others|||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|IV. Closing balance of the year|||644,763,730.00||167,480,381.25||111,828,824.49||8,314,754.88||520,074,434.56||3,031,700,072.97||-||812,882,950.94||5,297,045,149.09||644,763,730.00||167,480,381.25||19,800,344.49||4,767,373.45||520,074,434.56||3,566,083,142.17||-||1,644,073,503.71||6,567,042,909.63||

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2018
Statement of Changes in Shareholders' Equity of the Company
Unit: RMB
||||||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||2018||||||||||||||2017|||||||||||||
|||||||||Other||||||||||||||Other|||||||||
|||||||||comprehensive||||||Unappropriated||Total shareholders'||||||comprehensive||||||Unappropriated||Total shareholders'|
||Item|||Share capital||Capital reserve||income||Special reserve||Surplus reserve||profit||equity||Share capital||Capital reserve||income||Special reserve||Surplus reserve||profit||equity|
|I. Closing balance of the preceding year|||644,763,730.00||240,001,254.59||6,647,500.00||-||520,074,434.56||1,046,473,178.03||2,457,960,097.18||644,763,730.00||240,001,254.59||5,672,500.00||1,027,543.25||520,074,434.56||634,765,399.86||2,046,304,862.26||
|Add: Changes in accounting policies|||-||-||92,613,480.00||-||-||-||92,613,480.00||-||-||-||-||-||-||-||
|Corrections of prior period errors|||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|Others|||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|II. Opening balance of the year|||644,763,730.00||240,001,254.59||99,260,980.00||-||520,074,434.56||1,046,473,178.03||2,550,573,577.18||644,763,730.00||240,001,254.59||5,672,500.00||1,027,543.25||520,074,434.56||634,765,399.86||2,046,304,862.26||
|III. Changes for the year|||-||-||(585,000.00)||211,707.86||-||(803,849,280.88)||(804,222,573.02)||-||-||975,000.00||(1,027,543.25)||-||411,707,778.17||411,655,234.92||
|(I) Total comprehensive income|||-||-||(585,000.00)||-||-||46,594,078.99||46,009,078.99||-||-||975,000.00||-||-||731,510,588.25||732,485,588.25||
|(I|I) Owners' contributions and reductio|n|-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||in capital||||||||||||||||||||||||||||||
|1|．Capital contribution from||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||shareholders||||||||||||||||||||||||||||||
|2|．Share-based payment recognized in||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||shareholders' equity||||||||||||||||||||||||||||||
|3|．Others||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|(III) Profit distribution|||-||-||-||-||-||(850,443,359.87)||(850,443,359.87)||-||-||-||-||-||(319,802,810.08)||(319,802,810.08)||
|1|．Transfer to surplus reserve||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|2|．Transfer to general reserve||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|3|．Distributions to shareholders||-||-||-||-||-||(850,443,359.87)||(850,443,359.87)||-||-||-||-||-||(319,802,810.08)||(319,802,810.08)||
|4|．Others||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|(I|V) Transfers within shareholders'||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||equity||||||||||||||||||||||||||||||
|1|．Capitalization of capital reserve||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|2|．Capitalization of surplus reserve||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|3|．Loss made up by surplus reserve||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|4|．Others||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|(V) Special reserve|||-||-||-||211,707.86||-||-||211,707.86||-||-||-||(1,027,543.25)||-||-||(1,027,543.25)||
|1|．Withdrawn in the period||-||-||-||1,310,640.42||-||-||1,310,640.42||-||-||-||2,239,851.36||-||-||2,239,851.36||
|2|．Utilized in the period||-||-||-||(1,098,932.56)||-||-||(1,098,932.56)||-||-||-||(3,267,394.61)||-||-||(3,267,394.61)||
|(VI) Others|||-||-||-||-||-||-||-||-||-||-||-||-||-||-||
|IV. Closing balance of the year|||644,763,730.00||240,001,254.59||98,675,980.00||211,707.86||520,074,434.56||242,623,897.15||1,746,351,004.16||644,763,730.00||240,001,254.59||6,647,500.00||-||520,074,434.56||1,046,473,178.03||2,457,960,097.18||

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(I) GENERAL INFORMATION OF THE COMPANY
Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred to as the "Company") was a stock limited company incorporated in Shenzhen City Guangdong Province on 16 January 1993. The headquarters of the Company is located in Shenzhen, Guangdong Province. The Company and its subsidiaries (collectively the "Group") is principally engaged in the provision of cargo handling, warehousing, land and sea transportation services, cargo packing, agency business and other services.
The scope of consolidated financial statements in the current period involves 10 subsidiaries. See Note (VII) "Equity in other entities" for details. Changes in the scope of consolidated financial statements in the current period represent the decrease in scope of consolidation due to other reasons. See Note (VI) "Changes in the scope of consolidation" for details.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises issued by the Ministry of Finance (MoF). In addition, the Group has disclosed relevant financial information in accordance with Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in 2014). Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for certain financial instruments which are measured at fair value, the Group adopts the historical cost as the principle of measurement of the financial statements. Upon being restructured into a stock company, the fixed assets and intangible assets initially contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department. Where assets are impaired, provisions for asset impairment are made in accordance with the relevant requirements.
Where the historical cost is adopted as the measurement basis, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or the contractual amounts for assuming the present obligation, or, at the amounts of cash or cash equivalents expected to be paid to settle the liabilities in the normal course of business. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using valuation technique. Fair value measurement and/or disclosure in the financial statements are determined according to the above basis.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS - continued
Basis of accounting and principle of measurement - continued
Fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
Going Concern
The Group evaluated its going concern ability within 12 months since 30 June 2018. No events or circumstances are noted, which could cause significant doubt upon the entity's ability to continue as going concern. Hence, the financial statements have been prepared on a going concern basis. (III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES All the following significant accounting policies and accounting estimates are based on Accounting Standards for Business Enterprises ("ASBE").
1. Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with ASBE, and present truly and completely, the Company's and consolidated financial position as of 30 June 2018, and the Company's and consolidated results of operations and cash flows for the six months then ended.
2. Accounting period
The Group has adopted the calendar year as its accounting year, e.g. from 1 January to 31 December.
3. Operating cycle
Buginese cycle is referred to the period from which an enterprise buys assets to manufacture to the date it achieves cash or cash equivalents.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 4. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company and its subsidiaries operate. Therefore, the Company and its subsidiaries choose RMB as their functional currency. The Group adopts RMB to prepare its financial statements.
5. The accounting treatment of business combinations involving or not involving enterprises under common control
Business combinations are classified into business combinations involving enterprises under common control and business combinations not involving enterprises under common control. 5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded by the combining entities at the date of the combination. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are incurred.
5.2 Business combinations not involving enterprises under common control and goodwill A business combination not involving enterprises under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of the acquire. Where a business combination not involving enterprises under common control is achieved in stages that involve multiple transactions, the cost of combination is the sum of the consideration paid at the acquisition date and the fair value at the acquisition date of the acquirer's previously held interest in the acquiree. The intermediary expenses (fees in respect of auditing, legal services, valuation and consultancy services, etc.) and other administrative expenses attributable to the business combination are recognized in profit or loss in the periods when they are incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities acquired by the acquirer in a business combination that meet the recognition criteria shall be measured at fair value at the
acquisition date.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 5. The accounting treatment of business combinations involving or not involving enterprises under common control - continued
5.2 Business combinations not involving enterprises under common control and goodwill - continued
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the difference is treated as an asset and recognized as goodwill, which is measured at cost on initial recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment losses, and is presented separately in the consolidated financial statements.
6. Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control exists when the investor has power over the investee; is exposed, or has rights, to variable returns from its involvement with the investee; and has the ability to use its power over the investee to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes of the above elements of the definition of control.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiaries and ceases when the Group loses control of the subsidiary.
For a subsidiary already disposed of by the Group, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
For subsidiaries acquired through a business combination involving enterprises not under common control, the operating results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
No matter when the business combination occurs in the reporting period, subsidiaries acquired through a business combination involving enterprises under common control are included in the Group's scope of consolidation as if they had been included in the scope of consolidation from the date when they first came under the common control of the ultimate controlling party. Their
operating results and cash flows from the date when they first came under the common control of
the ultimate controlling party are included in the consolidated income statement and consolidated
statement of cash flows, as appropriate.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 6. Preparation of consolidated financial statements - continued
The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the uniform accounting policies and accounting periods set out by the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the parent is treated as minority interests and presented as "minority interests" in the consolidated balance sheet under
shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable to minority interests is presented as "minority interests" in the consolidated income statement under the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders' portion of the opening balance of shareholders' equity of the subsidiary, the excess amount is still allocated against minority interests.
Acquisition of minority interests or disposals of interests in a subsidiary that do not result in the loss of control over the subsidiary are accounted for as equity transactions. The carrying amounts of the parent's interests and minority interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the amount by which the minority interests are adjusted and the fair value of the consideration paid or received is adjusted to shareholders' equity (capital reserve). If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against retained earnings.
When the Group loses control over a subsidiary due to disposal of equity investment or other reason, any retained interest is re-measured at its fair value at the date when control is lost. The difference between (i) the aggregate of the consideration received on disposal and the fair value of any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated from the acquisition date according to the original proportion of ownership interests is recognized as investment income in the period in which control is lost, and the goodwill is offset accordingly. Other comprehensive income associated with investment in the former subsidiary is reclassified to investment income in the period in which control is lost.
7. Types of joint arrangements and the accounting treatment of joint operation
There are two types of joint arrangements - joint operations and joint ventures. The classification of joint arrangements under is determined based on the rights and obligations of parties to the joint arrangements by considering the structure, the legal form of the arrangements, the contractual terms agreed by the parties to the arrangement. A joint operation is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.
Investments in joint ventures are accounted for using the equity method by the Group, which is
detailed in Note (III) 13.3.2, a long-term equity investment is subject to for using the equity
method.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 7. Types of joint arrangements and the accounting treatment of joint operation - continued The Group as a joint operator recognizes the following items in relation to its interest in a joint operation: (1) its solely-held assets, including its share of any assets held jointly; (2) its solely- assumed liabilities, including its share of any liabilities incurred jointly; (3) its revenue from the sale of its share of the output arising from the joint operation; (4) its share of the revenue from the sale of the output by the joint operation; and (5) its solely-incurred expenses, including its share of any expenses incurred jointly. The Group accounts for the recognized assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the requirements applicable to the particular assets, liabilities, revenues and expenses.
8. Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are the Group's short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 9. Foreign currency transactions
9.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet date are recognized in profit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset during the capitalization period; (2) exchange differences related to hedging instruments for the purpose of hedging against foreign currency risks are accounted for using hedge accounting; (3) exchange differences arising from change in the carrying amounts other than the amortized cost of available-for-sale monetary items are included in other comprehensive income. Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot exchange rates on the dates of the transactions; the amounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange rate on the date the fair value is determined. Difference between the re-translated functional currency amount and the original functional currency amount is treated as changes in fair value including changes of exchange rate and is recognized in profit and loss or included in other comprehensive income.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. For financial assets and financial liabilities at fair value through profit or loss, transaction costs are immediately recognized in profit or loss. For other financial assets and financial liabilities, transaction costs are included in their initial recognized amounts. However, where the Group's initially recognized accounts receivable does not include significant financing component as defined in Accounting Standards for Business Enterprises No.14 - Revenue (2017 revised) or the financing component of the contract not exceeding one year is not considered according the Accounting Standards for Business Enterprises No.14 - Revenue (2017 revised), it is initially measured at the transaction price as defined in the standards.
10.1 Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group estimates future cash flows considering all contractual terms of the financial asset or financial liability (without considering future credit losses), and also considers all fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts etc.
10.2 Classification, recognition and measurement of financial assets
According the Group's business model to manage the financial assets and the characteristics of the contractual cash flows of the financial assets, the financial assets are classified into one of the following three categories:
(1) Financial assets at amortized cost.
(2) Financial assets at fair value through other comprehensive income ("FVOCI").
(3) Financial assets at fair value through profit or loss ("FVTPL").
Where the financial assets are purchased or sold in regular way, the Group recognizes the assets received and corresponding liabilities, or derecognizes the assets disposed on a trade date basis, and meanwhile, recognizes the gains or losses from the disposal and the receivables from the buyer.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.2 Classification, recognition and measurement of financial assets - continued
- Financial assets at amortized cost
A financial asset shall be measured at amortised cost if both of the following conditions are met: (1) the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
(2) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The Group's financial assets classified at amortized cost include accounts receivable, notes receivable, interest receivable, dividends receivable, other receivables and entrusted loans. Financial assets at amortized cost are subsequently measured at amortized cost using effective interest method, with gains or losses from derecognition, impairment or amortization charged to profit or loss for the period.
- Financial assets at fair value through other comprehensive income
A financial asset shall be measured classified as FVOCI if both of the following conditions are met:
(a) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
(b) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
The gains or losses arising from financial assets at FVOCI, other than impairment losses or gains and exchange gains or losses, are included in other comprehensive income, until the financial asset is derecognized or reclassified. However, the interest on the financial assets calculated using effective interest method is included in profit or loss. The amount of the financial assets included in profit or loss for each period is deemed as equal to the amount included in profit or loss for each period due to amortized cost measurement. Upon derecognition, the accumulated gains or losses previously included in other comprehensive income are transferred from other
comprehensive income to in profit or loss.
Upon initial recognition, the Group may designate the non-trading equity instrument as financial assets at FVOCI. Once such designation is made, it shall not be cancelled.
The non-trading equity instrument investment designated as financial assets at FVOCI is subsequently measured at fair value. Upon derecognition of such financial assets, the accumulated gains or losses previously included in other comprehensive income is transferred from other comprehensive income to retained earnings. However, the dividends income satisfying the recognition criteria is included in profit or loss for the period.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.2 Classification, recognition and measurement of financial assets - continued
- Financial assets at FVTPL
Financial assets, other than those classified as financial assets at amortized cost and financial assets at FVOCI, are classified as financial assets at FVTPL. Where the contingent consideration recognized in business combination not involving enterprises under common control forms financial assets, such financial assets are classified as financial assets at FVTPL.
Where one of the following condition is satisfied, the Group considers that such financial asset is held for trading:
(1) the purpose for obtaining related financial assets is to sell the assets in recent period; (2) related financial assets are part of the financial instruments portfolio under concentration management upon initial recognition, and there is objective evidence indicating the existence of short-term profit model in recent period;
(3) related financial assets are derivatives, but except for the derivatives satisfying the definition of financial guarantee contract and those designated as effective hedging instruments. Upon initial recognition, the Group may designate the financial assets as financial assets at FVTPL if this may eliminate or significantly reduce the accounting mismatch. Once such designation is made, it shall not be cancelled.
The financial assets at FVTPL are subsequently measured at fair value, with related gains or losses included in profit or loss for the period.
10.3 Transfer of financial assets
The Group derecognises a financial asset if one of the following conditions is satisfied: (1) the contractual rights to the cash flows from the financial asset expire; or
(2) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; or
(3) although the financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and it retains control of the financial asset, it recognises the financial asset to the
extent of its continuing involvement in the transferred financial asset and recognises an associated
liability. The extent of theGroup’s continuing involvement in the transferred asset is the extent to
which it is exposed to changes in the value of the transferred asset.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.3 Transfer of financial assets - continued
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference between (1) the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from the transfer and any cumulative gain or loss that has been recognised in other comprehensive income, is recognised in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognised and the part that is derecognised, based on the respective fair values of those parts. The difference between (1) the carrying amount allocated to the part derecognised; and (2) the sum of the consideration received for the part derecognised and any cumulative gain or loss allocated to the part derecognised which has been previously recognised in other comprehensive income, is recognised in profit or loss.
10.4 Classification, recognition and measurement of financial liabilities
Debt and equity instruments issued by the Group are classified into financial liabilities or equity upon initial recognition on the basis of the substance of the contractual arrangements and definitions of financial liability and equity instrument.
Upon initial recognition, financial liabilities are classified into financial liabilities at FVTPL and financial liabilities at amortized cost. Except for the following items, the Group classifies the financial liabilities into financial liabilities at amortized cost:
(1) Financial liabilities at FVTPL.
(2) Financial liabilities arising from the transfer of financial assets that does not satisfy the criteria of derecognition or the continuing involvement in the transferred assets.
(3) Financial guarantee contract which is not the aforesaid circumstance (1) or (2), as well as the loan commitment to issue a loan at a rate lower than the market interest rate which is not the aforesaid circumstance (1).
- Financial liabilities at FVTPL
Financial liabilities at fair value through profit or loss, including held-for-trading financial liabilities (including derivatives which are financial liabilities) and the financial liabilities designated as FVTPL. In the business combination not involving enterprises under common control, the financial liabilities arising from contingent consideration recognized by the Group as the buyer are accounted for as financial liabilities at FVTPL.
Where one of the following conditions is met, the Group considers that the financial liability is
held for trading:
(1) the purpose to undertake relevant financial liabilities is mainly to repurchase in recent period;
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.4 Classification, recognition and measurement of financial liabilities - continued
- Financial liabilities at FVTPL - continued
(2) the purpose to undertake relevant financial liabilities is mainly to repurchase in recent period; (3) the related financial liabilities upon initial recognition are part of the portfolio of the identifiable financial instruments under concentration management, and there is objective evidence of short-term profit model in recent period;
(4) the related financial liabilities are derivatives, except for the derivatives satisfying the definition of financial guarantee contract and the derivatives designated as effective hedging instruments.
Upon initial recognition, financial liabilities may be designated as financial liabilities at FVTPL if one of the following conditions is satisfied: (1) accounting mismatch can be eliminated or significantly reduced; (2) according to the written document of the Group's risk management and investment strategies, the Group manages the portfolio of financial liabilities or portfolio of both financial assets and financial liabilities and conducts performance assessment on fair value basis, and internally report to key management on such basis. Once such designation is made, it shall not be cancelled.
Financial liabilities at FVTPL are subsequently measured at fair value, with gains or losses from changes in fair value as well as the dividends and interest expenses on such financial liabilities charged to profit or loss for the period.
Gains or losses arising from financial liabilities designated as financial liabilities at FVTPL are accounted for as follows:
(1) the changes in fair value of financial liabilities arising from the credit risk of the Group are included in other comprehensive income;
(2) the other fair value changes of the financial liabilities are included in profit or loss. Where the accounting of the effect of the changes in credit risk of the financial liability according to the aforesaid provisions will result in or enlarge accounting mismatch in profit or loss, the Group records all the gains or losses on such financial liability (including the effect of changes in credit risk of the Group) in profit or loss. Upon derecognition of such financial liability, the accumulated gains or losses previously included in other comprehensive income is transferred from other comprehensive income to retained earnings.
- Financial liabilities at amortized cost
Financial liabilities at amortized cost are subsequently measured at amortized cost, with gains or
losses from derecognition or amortization included in profit or loss.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.5 Derecognition of financial liabilities
The Group derecognises a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability. Where the Group makes substantial modification to the contract terms of the existing financial liability (or part of it), the existing financial liability is derecognized and a new financial liability is recognized according to the revised terms.
Where a financial liability (or part of it) is derecognized, the difference between its carrying amount and the consideration paid (including non-cash assets transferred out or liabilities undertaken) is included in profit or loss.
Where the Group repurchases part of the financial liability, the carrying amount of the overall financial liability is allocated between the part continuing to be recognized and the part derecognized according to the proportion of their respective fair value to the fair value of the overall financial liability at repurchase date.
10.6 Impairment of financial instruments
The Group accounts for the following items for the impairment and makes provision based on the expected credit loss:
(1) The financial assets classified as amortized cost measurement and financial assets formed by debt instruments investment classified as FVOCI.
(2) Lease receivables.
(3) Contract assets.
(4) Loan commitment other than the financial liabilities at FVTPL issued by the Group and the financial guarantee contract applicable to related provisions.
Expected credit loss is the weighted average credit loss of financial instruments with the default risk as the weight.
Credit loss represent the difference between the contractual cash flow discounted at original effective interest rate and receivable according to the contract and the cash flow expected to be received, i.e. the present value of the total cash shortfall. For the Group's purchased or originated credit-impaired financial assets, such financial assets shall be discounted at the credit-adjusted
effective interest rate.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.6 Impairment of financial instruments - continued
- General impairment provision
Except for the purchased or originated credit-impaired financial assets and the financial assets applicable to simple method, the Group assesses at each balance sheet date whether the credit risk of related financial instruments has increased significantly since the initial recognition, and measures the loss allowance, recognizes expected credit loss and its changes according to the following circumstance separately:
(1) The Group measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. Regardless whether the Group assesses the credit loss by individual financial instrument or portfolio of financial instruments, the increase in or reversal of loss allowance arising from this is accounted for as gains or losses and included in profit or loss.
(2) If the credit risk on a financial instrument has not increased significantly since initial recognition, the Group shall measure the loss allowance for that financial instrument at an amount equal to 12-month expected credit losses. Regardless whether the Group assesses the credit loss by individual financial instrument or portfolio of financial instruments, the increase in or reversal of loss allowance arising from this is accounted for as gains or losses and included in profit or loss.
When making related assessment, the Group considers all reasonable and supportable information, including foreseeable information. To ensure the credit risk has increased significantly since initial recognition, i.e. recognize the lifetime expected credit loss, in some circumstances, the Group assesses whether the credit risk has increased significantly by considering on a portfolio basis.
- Simplified method for receivables, contract assets and lease receivables
For the following items, the Group always measures the loss allowance at an amount equal to the lifetime expected credit losses:
(1) the receivables or contract assets arising from the transactions under the Accounting Standards for Business Enterprises No. 14– Revenue (2017 revised), which meet one of the following conditions:
- The item does not include the significant financing component as defined in Accounting Standards for Business Enterprises No. 14– Revenue (2017 revised), or the Group does not consider the financing component in the contract not exceeding one year according to Accounting Standards for Business Enterprises No. 14– Revenue (2017 revised).
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.6 Impairment of financial instruments - continued
- Simplified method for receivables, contract assets and lease receivables - continued
- The item include the significant financing component as defined in Accounting Standards for Business Enterprises No. 14– Revenue (2017 revised), and meanwhile the Group chooses the accounting policies to measure the loss allowance at an amount equal to the lifetime expected credit losses.
(2) Lease receivables formed in the transactions under the Accounting Standards for Business Enterprises No.21– Lease, meanwhile the Group chooses the accounting policies to measure the loss allowance at an amount equal to the lifetime expected credit losses.
- Purchased or originated credit-impaired financial assets
For purchased or originated credit-impaired financial assets, at the balance sheet date, the Group only recognizes the accumulated changes in lifetime expected credit loss since initial recognition as loss allowance. At each balance sheet date, the Group recognises in profit or loss, as an impairment gain or loss, the amount of changes in credit loss for the lifetime. Even though the lifetime expected credit loss determined at the balance sheet date is less than the expected credit loss reflected by the estimated cash flow at initial recognition, the Group recognizes the favorable change in expected credit loss as impairment gains.
10.7 Derivative instruments and embedded derivatives
Derivative financial instruments include put options etc. Derivatives are initially measured at fair value at the date when the derivative contracts are entered into and are subsequently re-measured at fair value.
The embedded derivative instrument represent the derivatives embedded in the non-derivative instruments (i.e. main contract). The embedded derivative and the main contract form the hybrid contract.
Where the main contract included in hybrid contract is an asset under financial instruments standards, the Group does not separate the embedded derivatives from the hybrid contract, but apply such hybrid contract as a whole to the provisions on classification of financial assets. Where the main contract included in the hybrid contract is not an asset under the financial instruments standards, and all the following conditions are met, the Group separate the embedded derivative from the hybrid contract and account for it as a separate derivative:
(1) The economic characteristics and risks of embedded derivative are not closely related with that of the main contract.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.7 Derivative instruments and embedded derivatives - continued
(2) The separate instrument with the same terms of embedded derivatives satisfies the definition of the derivative instruments.
(3) The hybrid contract is not accounted for as FVTPL.
Where the embedded derivatives are separated from the hybrid contract, the Group accounts for the main contract of hybrid contract according to applicable accounting standards. Where the Group can't measure the fair value of embedded derivative reliably according to the terms and conditions of embedded derivative, the fair value of such derivative is determined based on the difference between the fair value of the hybrid contract and that of the main contract. Where the fair value of the embedded derivative still can't be measured separately at the acquisition date or subsequent balance sheet date using the aforesaid method, the Group will designate the hybrid contract in its entirety as financial instrument at FVTPL.
10.8 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized amounts, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset with the net amount presented in the balance sheet. Except for the circumstances above, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset. 10.9 Dividends income
The Group recognizes the dividends income with a charge to profit or loss only when the following conditions are met:
(1) the Group's right to receive the dividends has been established;
(2) it is probable that the economic benefit associated with the dividends will flow into the Group; (3) the amount of dividends can be measured reliably.
10.10 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. The issuance including refinancing, repurchase, sale or cancellation of equity instrument of the Group is recognized as movement of shareholders' equity. The Group does not recognize any changes in the fair value of equity instruments. Transaction costs associated with equity transactions are deducted from shareholders' equity.
The distributions made by the Group to holders of the equity instruments are recognized as profit
distribution. Any issuance of stock dividends do not affect the shareholders' equity.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.10 Equity instruments - continued
The following accounting policies on financial instruments are applicable to 2017.
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. For financial assets and financial liabilities at fair value through profit or loss, transaction costs are immediately recognised in profit or loss. For other financial assets and financial liabilities, transaction costs are included in their initial recognised amounts.
10.11 Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability
When calculating the effective interest rate, the Group estimates future cash flows considering all contractual terms of the financial asset or financial liability (without considering future credit losses), and also considers all fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
10.12 Classification, recognition and measurement of financial assets
On initial recognition, the Group's financial assets are classified into one of the four categories, including financial assets at fair value through profit or loss ("FVTPL"), held-to-maturity investments, loans and receivables, and available-for-sale financial assets. All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis 10.12.1 Financial Assets at Fair Value through Profit or Loss ("FVTPL")
Financial assets at fair value through profit or loss ("FVTPL") include financial assets held for trading and those designated as at fair value through profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (1) it has been acquired principally for the purpose of selling in the near term; or (2) on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or (3) it is a derivative that is not designated and effective as a hedging instrument,
or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery
of an unquoted equity instrument (without a quoted price in an active market) whose fair value
cannot be reliably measured.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.12.1 Financial Assets at Fair Value through Profit or Loss ("FVTPL") - continued
A financial asset may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (1) such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring assets or recognizing the gains or losses on them on different bases; or (2) the financial asset forms part of a group of financial assets or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis; or (3) eligible hybrid instruments that contain embedded derivatives.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value and any dividend or interest income earned on the financial assets are recognized in profit or loss.
10.12.2 Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Group's management has the positive intention and ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit or loss.
10.12.3 Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets classified as loans and receivables by the Group include notes receivable, accounts receivable, interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit or loss.
10.12.4 Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognition as available for sale, and financial assets that are not classified as financial
assets at fair value through profit or loss, loans and receivables or held-to-maturity investments.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.12 Classification, recognition and measurement of financial assets - continued
10.12.4 Available-for-sale financial assets - continued
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising from changes in the fair value are recognized as other comprehensive income and included in the capital reserve, except that impairment losses and exchange differences related to amortized cost of financial assets are recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the available-for-sale financial assets are held, are recognized in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, and derivative financial assets that are linked to and must be settled by delivery of such unquoted equity instruments are measured at cost.
10.13 Impairment of financial assets
The Group assesses at each balance sheet date the carrying amounts of financial assets other than those at fair value through profit or loss. If there is objective evidence that a financial asset is impaired, the Group determines the amount of any impairment loss. Objective evidence that a financial asset is impaired is evidence that, arising from one or more events that occurred after the initial recognition of the asset, the estimated future cash flows of the financial asset, which can be reliably measured, have been affected.
Objective evidence that a financial asset is impaired includes the following observable events: (1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
(3) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial
reorganizations;
(5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
(6) Upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in the estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. Such observable data includes:
- Adverse changes in the payment status of borrower in the group of assets;
- Economic conditions in the country or region of the borrower which may lead to a failure to
pay the group of assets;
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.13 Impairment of financial assets - continued
(7) Significant adverse changes in the technological, market, economic or legal environment in which the issuer of equity instruments operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument, i.e. at the balance sheet date, if the fair value of an equity instrument investment is in below its initial investment cost exceeding50% (inclusive), or for a period exceeding 12 months (inclusive);
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortized cost
If financial assets carried at cost or amortized cost are impaired, the carrying amounts of the financial assets are reduced to the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset's original effective interest rate. The amount of reduction is recognized as an impairment loss in profit or loss. If, subsequent to the recognition of an impairment loss on financial assets carried at amortized cost, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is reversed. However, the reversal does not result in a carrying amount of the financial asset that exceeds what the amortized cost would have been had the impairment not been recognized at the date the impairment is reversed.
For a financial asset that is individually significant, the Group assesses the asset individually for impairment. For a financial asset that is not individually significant, the Group assesses the asset individually for impairment or includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset (whether significant or not), it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets for which an impairment loss is individually recognized are not included in a collective assessment of impairment. - Impairment of available-for-sale financial assets
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value previously recognized directly in other comprehensive income is reclassified from the capital reserve to profit or loss. The amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.13 Impairment of financial assets - continued
- Impairment of available-for-sale financial assets - continued
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale equity instruments is recognized as other comprehensive income and included in the capital reserve, while the amount of reversal of impairment loss on available-for-sale debt instruments is recognized in profit or loss.
- Impairment of financial assets measured at cost
If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the carrying amount of the financial asset is reduced to the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. The amount of reduction is recognized as an impairment loss in profit or loss. The impairment loss on such financial asset is not reversed once it is recognized.
10.14 Transfer of financial assets
The Group derecognizes a financial asset if one of the following conditions is satisfied: (1) the contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; or (3) although the financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and it retains control of the financial asset, it recognizes the financial asset to the extent of its continuing involvement in the transferred financial asset and recognizes an associated liability. The extent of the Group's continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the transferred asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference between (1) the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from the transfer and any cumulative gain or loss that has been recognized in other comprehensive income, is recognized in profit or loss.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.14 Transfer of financial assets
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the respective fair values of those parts. The difference between (1) the carrying amount allocated to the part derecognized; and (2) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other comprehensive income, is recognized in profit or loss
10.15 Classification, recognition and measurement of financial liabilities
Debt and equity instruments issued by the Group are classified into financial liabilities or equity on the basis of the substance of the contractual arrangements and definitions of financial liability and equity instrument.
On initial recognition, financial liabilities are classified into financial liabilities at fair value through profit or loss and other financial liabilities.
10.15.1 Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL consist of financial liabilities held for trading and those designated as at FVTPL on initial recognition.
A financial liability is classified as held for trading if one of the following conditions is satisfied: (1) It has been acquired principally for the purpose of repurchasing in the near term; or (2) On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or (3) It is a derivative, except for a derivative that is a designated and effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
A financial liability may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (1) such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring liabilities or recognizing the gains or losses on them on different bases; or (2) the financial liability forms part of a group of financial liabilities or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis; or (3) eligible hybrid instruments that contain embedded derivatives.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.15 Classification and recognition of financial liabilities - continued
10.15.1 Financial liabilities at fair value through profit or loss - continued
Financial liabilities at FVTPL are subsequently measured at fair value, and any gains or losses arising from changes in the fair value or any dividend or interest expense related with the financial liabilities are recognized in profit or loss.
10.15.2 Other financial liabilities
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, it is subsequently measured at cost. Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with gains or losses arising from derecognition or amortization recognized in profit or loss.
10.15.3 Financial guarantee contracts
A financial guarantee contract is a contract by which the guarantor and the lender agree that the guarantor would settle the debts or bear obligations in accordance with terms of the contract in case the borrower fails to settle the debts. Financial guarantee contracts that are not designated as financial liabilities at fair value through profit or loss, are initially measured at their fair values less the directly attributable transaction costs. Subsequent to initial recognition, they are measured at the higher of: (i) the amount determined in accordance with Accounting Standard for Business Enterprises No. 13 - Contingencies; and (ii) the amount initially recognized less cumulative amortization recognized in accordance with the principles set out in Accounting Standard for Business Enterprises No. 14 - Revenue.
10.16 Derecognition of Financial Liabilities
The Group derecognizes a financial liability (or part of it) when the underlying present obligation (or part of it) is discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
When the Group derecognizes a financial liability or a part of it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 10. Financial instruments - continued
10.17 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized amounts, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset with the net amount presented in the balance sheet. Except for the circumstances above, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset. 10.18 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. The issuance including refinancing, repurchase, sale or cancellation of equity instrument of the Group is recognized as movement of shareholders' equity. The Group does not recognize any changes in the fair value of equity instruments. Transaction costs associated with equity transactions are deducted from shareholders' equity.
The distributions made by the Group to holders of the equity instruments are recognized as profit distribution. Any issuance of stock dividends do not affect the shareholders' equity.
11. Receivables
11.1 Receivables that are individually significant and for which bad debt provision is individually assessed
|||
|-|-|
|Basis or monetary criteria for|The accounts receivables amount over RMB 5,000,000.00 arerecognized as individually significant receivables by the Group.|
|determining individually significant||
|receivables||
||For receivables that are individually significant, the Group assesses thereceivables individually for impairment; for a financial asset that is notimpaired individually, the Group includes the asset in a group offinancial assets with similar credit risk characteristics and collectivelyassesses them for impairment. Receivables for which an impairmentloss is individually recognized are not included in a collectiveassessment of impairment.|
|Provision methods for receivables that||
|are individually significant and for||
|which bad debt provision is||
|individually assessed||

11.2 Receivables for which bad debt provision is collectively assessed on a credit risk portfolio basis
||||
|-|-|-|
|Basis for determining a portfolio|||
|Portfolio 1||The portfolio primarily includes amounts due from related parties ofthe Group, deposits and petty cash etc.|
|Portfolio 2||This portfolio excludes amounts due from related parties of the Group,deposits and petty cash etc.|
|Bad debt provision methods for a p|ortfolio||
|Portfolio 1||Specific Identification Method|
|Portfolio 2||Aging Analysis Method|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 11. Receivables - continued
11.2 Receivables for which bad debt provision is collectively assessed on a credit risk portfolio basis - continued
Portfolios that use aging analysis for bad debt provision:
||||||
|-|-|-|-|-|
|||Provision proportion for||Provision proportion for|
|Aging||accounts receivable (%)||other receivables (%)|
|Within 180 days (inclusive)|0-3||0-3||
|More than 181 days but not exceeding year|5||5||
|More than 1 year but not exceeding 2 years|20||20||
|More than 2 years but not exceeding 3 years|50||50||
|More than 3 years|100||100||

11.3 Accounts receivable that are not individually significant but for which individual bad debt provision is individually assessed:
|||
|-|-|
||As objective evidence indicates the Group is unable to collect thereceivables under original terms, the company makes individual baddebt provision.|
|Reasons for making individual bad debt||
|provision||
||Under bad debt provision method, the provision is recognized by thedifferences between the expected present value of future cash flowsand carrying value.|
|Bad debt provision methods||

12. Inventories
12.1 Categories of inventories
Inventories include spare parts, fuel, and low value consumables. Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and other expenditures incurred in bringing the inventories to their present location and condition. 12.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method. 12.3 Basis for determining net realizable value of inventories and provision methods for decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the cost of inventories is higher than the net realizable value, a provision for decline in value of inventories is made. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the estimated costs necessary to make the sale and
relevant taxes. Net realizable value is determined on the basis of clear evidence obtained, after
taking into consideration the purposes of inventories being held and effect of post balance sheet
events.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 12. Inventories - continued
12.3 Basis for determining net realizable value of inventories and provision methods for decline in value of inventories - continued
Provision for decline in value of other inventories is made based on the excess of cost of inventory over its net realizable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realizable value of inventories is higher than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss for the period.
12.4 Inventory count system
The perpetual inventory system is maintained for stock system.
12.5 Amortization methods for low cost and short-lived consumable items and packaging materials
Packaging materials and low cost and short-lived consumable items are amortized using the immediate write-off method.
13. Non-current assets held for sale and disposal group
When the Group withdraw the book value of certain assets or disposal group mainly through disposal instead of continual application, the assets should be classified as held-for-sale assets. Assets or disposal group classified as held-for-sale assets should meat following conditions: (1) The current status is available for immediate distribution according to similar transactions of this category of assets or disposal group; (2) The transaction is likely to occur, i.e. the Group has made its resolution over the distribution arrangements and acquired purchase commitment. Also the distribution is going to be fulfilled within a year.
If the holding company loses control of its subsidiary for reasons like subsidiary disposal, in regardless of whether the holding company still keeps part of equity investment, once the proposed investment disposal meets the requirements of being classified as available for sale assets in the holding company's individual statement, all assets and liabilities of the subsidiary should be classified as held-for-sale in consolidated financial statement.
The group's non-current assets and disposal group are measured at the lower of book value and the net value of fair value less costs to sell. Once the book value is higher than the net value of fair value less costs to sell, the book value should be adjusted to the net value and the excess should be recognized as impairment losses and provision for held-for-sale assets impairment should be made. A gain and a reverse in the previous provision for held-for-sale assets
impairment can be recognized for any increase in fair value less costs to sell at subsequent
balance sheet dates, to the extent that it is not in excess of the cumulative impairment loss that has
been recognized.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 13. Non-current assets held for sale and disposal group - continued
Non-current held-for-sale assets is not subject to depreciation and amortization. The creditor interest and other expenses of disposal group classified as held-for-sale asset should still be recognized.
Once the associate or joint venture equity investment is completely or partly classified as held- for-sale assets, the classified part of the investment is not subject to equity method measurement. 14. Long-term equity investments
14.1 Basis for determining joint control and significant influence over investee
Control is archived when the Group has the power over the investee and has rights to variable returns from its involvement with the investee; and has the ability to use its power to affect its returns. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating policy decisions relating to the activity require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. When determining whether an investing enterprise is able to exercise control or significant influence over an investee, the effect of potential voting rights of the investee (for example, warrants and convertible debts) held by the investing enterprises or other parties that are currently exercisable or convertible shall be considered.
14.2 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control, the investment cost of the long-term equity investment is the attributable share of the carrying amount of the shareholders' equity of the acquiree at the date of combination. The difference between the initial investment cost and the carrying amount of cash paid, non-cash assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to retained earnings. If the consideration of the combination is satisfied by the issue of equity securities, the initial investment cost of the long-term equity investment shall be the share of party being absorbed of the owners' equity in the consolidated financial statements of the ultimate controlling party at the date of combination. The aggregate face value of the shares issued shall be accounted for as share capital. The difference between the initial investment cost and the aggregate face value of the shares issued shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to retained earnings.
For a long-term equity investment acquired through business combination not involving enterprises under common control, the investment cost of the long-term equity investment acquired is the cost of acquisition.
The absorbing party's or purchaser's intermediary expenses (fees in respect of auditing, legal services, valuation and consultancy services, etc.) and other administrative expenses attributable
to the business combination are recognized in profit or loss in the periods when they are incurred.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 14. Long-term equity investments - continued
14.2 Determination of investment cost - continued
The long-term equity investment acquired otherwise than through a business combination is initially measured at its cost. When the entity is able to exercise significant influence or joint control (but not control) over an investee due to additional investment, the cost of long-term equity investments is the sum of the fair value of previously-held equity investments determined in accordance with Accounting Standard for Business EnterprisesNo.22–Financial Instruments: Recognition and Measurement of (CAS 22) and the additional investment cost.
14.3 Subsequent measurement and recognition of profit or loss
14.3.1 A long-term equity investment accounted for using the cost method
Long-term equity investments in subsidiaries are accounted for using the cost method in the Company's separate financial statements. A subsidiary is an investee that is controlled by the Group.
Under the cost method, a long-term equity investment is measured at initial investment cost. Additional or withdrawing investment would affect the cost of long-term equity investment. Investment income is recognized in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
14.3.2 A long-term equity investment accounted for using the equity method
Except associate and joint venture investment completely or partly classified as available for sale, and The Group accounts for investment in associates and joint ventures using the equity method. An associate is an entity over which the Group has significant influence and a joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost. Where the initial investment cost is less than the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, the difference is recognized in profit or loss for the period, and the cost of the long- term equity investment is adjusted accordingly.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 14. Long-term equity investments - continued
14.3 Subsequent measurement and recognition of profit or loss - continued
14.3.2 A long-term equity investment accounted for using the equity method - continued Under the equity method, the Group recognizes its share of the other comprehensive income and net profit or loss of the investee for the period as other comprehensive income and investment income or loss respectively for the period, and the carrying amount of the long-term equity investment is adjusted accordingly. The carrying amount of the investment shall be reduced by the portion of any profit distributions or cash dividends declared by the investee that is distributed to the investing enterprise. The investing enterprise shall adjust the carrying amount of the long-term equity investment for other changes in owners' equity of the investee (other than net profits or losses, other comprehensive income and profit distribution), and include the corresponding adjustment in capital reserve. The Group recognizes its share of the investee's net profit or loss based on the fair value of the investee's individually identifiable assets at the acquisition date after making appropriate adjustments. Where the accounting policies and accounting period adopted by the investee are different from those of the investing enterprise, the investing enterprise shall adjust the financial statements of the investee to conform to its own accounting policies and accounting period, and recognize other comprehensive income and investment income or losses based on the adjusted financial statements. Unrealized profits or losses resulting from the Group's transactions and assets invested or sold that are not recognized as business transactions with its associates and joint ventures are recognized as investment income or loss to the extent that those attributable to the Group's, equity interest are eliminated. However, unrealized losses resulting from the Group's transactions with its associates and joint ventures which represent impairment losses on the transferred assets are not eliminated.
The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of its net investment in the investee are reduced to zero. Except that if the Group has incurred obligations to assume additional losses, a provision is recognized according to the obligation expected, and recorded in the investment loss for the period. Where net profits are subsequently made by the investee, the Group resumes recognizing its share of those profits only after its share of the profits exceeds the share of losses previously not recognized.
14.4 Disposal of long-term equity investments
On disposal of a long-term equity investment, the difference between the proceeds actually received and receivable and the carrying amount is recognized in profit or loss for the period. For long-term equity investments accounted for using the equity method, if the remaining interest after disposal is still accounted for using the equity method, other comprehensive income previously recognized for using the equity method is accounted for on the same basis as would have been required if the investee had directly disposed of related assets or liabilities, and transferred to profit or loss for the period on a pro rata basis; owners' equity recognized due to changes in other owners' equity of the investee (other than net profit or loss, other comprehensive income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 14. Long-term equity investments - continued
14.4 Disposal of long-term equity investments - continued
For long-term equity investments accounted for using the cost method, if the remaining interest after disposal is still accounted for using the cost method, other comprehensive income previously recognized for using the equity method or in accordance with the standards for the recognition and measurement of financial instruments before obtaining the control over the investee, is accounted for on the same basis as would have been required if the investee had directly disposed of related assets or liabilities, and transferred to profit or loss for the period on a pro rata basis; changes in other owners' equity in the investee's net assets recognized under the equity method (other than net profit or loss, other comprehensive income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.
15. Investment properties
Investment property is property held to earn rentals or for capital appreciation or both. It includes a land use right that is leased out; a land use right held for transfer upon capital appreciation; and a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such investment property are included in the cost of the investment property if it is probable that economic benefits associated with an investment property will flow to the Group and the subsequent expenditures can be measured reliably, other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment property, and adopts a depreciation or amortization policy for the investment property which is consistent with that for buildings or land use rights.
When an investment property is sold, transferred, retired or damaged, the Group recognizes the amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss for the period.
16. Fixed assets
16.1 Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and have useful lives of more than one accounting year. A fixed asset is recognized only when it is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost. Upon being restructured into a stock company, the fixed assets initially contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 16. Fixed assets - continued
16.1 Recognition criteria for fixed assets - continued
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable that economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
16.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method starting from the month subsequent to the one in which it is ready for intended use. The useful life, estimated net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
||||||||
|-|-|-|-|-|-|-|
|||Estimated||Estimated||Annual|
|Category||useful lives||residual value||depreciation rate|
|Port and terminal facilities|5-50year||10%||1.8%-18%||
|Container yards and buildings|5-40year||10%||2.25%-18%||
|Mechanical equipment|5-15year||10%||6%-18%||
|Motor vehicles, cargo ships and tugboats|5-20year||10%||4.5%-18%||
||5year||10%||18%||
|Other equipment|||||||

 Estimated net residual value of a fixed asset is the estimated amount that the Group would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. 16.3 Other explanations
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal, the fixed asset is derecognized. When a fixed asset is sold, transferred, retired or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and related taxes is recognized in profit or loss for the period.
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least once at each financial year-end, and account for any change as a change in an accounting estimate.
17. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various
construction expenditures during the construction period, borrowing costs capitalized before it is
ready for intended use and other relevant costs. Construction in progress is not depreciated.
Construction in progress is transferred to a fixed asset when it is ready for intended use.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 18. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are capitalized when expenditures for such asset and borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted abnormally and when the interruption is for a continuous period of more than 3 months. Capitalization is suspended until the acquisition, construction or production of the asset is resumed. Other borrowing costs are recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed under general-purpose borrowings, the Group determines the amount of interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings. During the capitalization period, exchange differences related to a specific-purpose borrowing denominated in foreign currency are all capitalized. Exchange differences in connection with general-purpose borrowings are recognized in profit or loss in the period in which they are incurred.
19. Intangible assets
Intangible assets include land use rights, sea area use rights and computer software.
An intangible asset is measured initially at cost. Upon being restructured into a stock company, the intangible assets initial contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department. When an intangible asset with a finite useful life is available for use, its original cost is amortized over its estimated useful life.
||||||||
|-|-|-|-|-|-|-|
|||||||Residual|
|Category||Amortization method||Estimated useful lives (years)||value (%)|
|Land use rights|Straight-line method||20-50||-||
|Computer software|Straight-line method||5||-||
|Sea area use rights|Straight-line method||5-50||-||
|Coastal line use rights|Straight-line method||41.9-44.3||-||

For an intangible asset with a finite useful life, the Group reviews the useful life and amortization
method at the end of the period, and makes adjustments when necessary.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 20. Impairment of long-term assets
The Group assesses at the balance sheet date whether there is any indication that the long-term equity investments, investment properties measured at cost method, construction in progress, fixed assets and intangible assets with a finite useful life may be impaired. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. Intangible assets with indefinite useful life and intangible assets not yet available for use are tested for impairment annually, irrespective of whether there is any indication that the assets may be impaired.
Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the future cash flows expected to be derived from the asset.
If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognized in profit or loss.
Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment testing, goodwill is considered together with the related assets groups, i.e., goodwill is reasonably allocated to the related assets groups or each of assets groups expected to benefit from the synergies of the combination. In testing an assets group with goodwill for impairment, an impairment loss is recognized if the recoverable amount of the assets group or sets of assets groups (including goodwill) is less than its carrying amount. The impairment loss is firstly allocated to reduce the carrying amount of any goodwill allocated to such assets group or sets of assets groups, and then to the other assets of the group pro-rata basis on the basis of the carrying amount of each asset (other than goodwill) in the group.
Once the impairment loss of above-mentioned asset is recognized, it shall not be reversed in any subsequent period.
21. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over the current and subsequent periods (together of more than one year). Long-term prepaid expenses are amortized using the straight-line method over the expected periods in which benefits are derived.
22. Employee benefits
22.1 The accounting treatment of short-term employee benefits
Actually occurred short-term employee benefits are recognized as liabilities, with a corresponding charge to the profit or loss for the period or in the costs of relevant assets in the accounting period in which employees provide services to the Group. Staff welfare expenses incurred by the Group are recognized in profit or loss for the period or the costs of relevant assets based on the actually occurred amounts when it actually occurred. Non-monetary staff welfare expenses are measured
at fair value.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 22. Employee benefits - continued
22.1 The accounting treatment of short-term employee benefits - continued
Payment made by the Group of social security contributions for employees such as premiums or contributions on medical insurance, work injury insurance and maternity insurance, etc. and payments of housing funds, as well as union running costs and employee education costs provided in accordance with relevant requirements, are calculated according to prescribed bases and percentages in determining the amount of employee benefits and recognized as relevant liabilities, with a corresponding charge to the profit or loss for the period or the costs of relevant assets in the accounting period in which employees provide services.
22.2 The accounting treatment of post-employment benefits
All the post-employment benefits are defined contribution plans.
The contribution payable to the defined contribution plan is recognized as liabilities, with a corresponding charge to the profit or loss for the period or in the costs of relevant assets in the accounting period in which employees provide services to the Group.
22.3 The accounting treatment of termination benefits
When the Group provides termination benefits to employees, employee benefit liabilities are recognized for termination benefits, with a corresponding charge to the profit or loss for the period at the earlier of: (1) when the Group cannot unilaterally withdraw the offer of termination benefits because of the termination plan or a curtailment proposal; and (2) when the Group recognizes costs or expenses related to restructuring that involves the payment of termination benefits.
23. Provisions
Provisions are recognized when the Group has a present obligation related with contingencies, it is probable that the Group will be required to settle that obligation causing an outflow of economic benefits, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at balance sheet date, taking into account the risks, uncertainties and time value of money surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows where the effect of the time value of money is material.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable should not exceed the carrying amount of provisions.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 24. Revenue
The Group evaluates the contract on the contract commencement date, identifies each individual performance obligation included in the contract, and determines whether each individual performance obligation is performed over time or at a certain point in time. If one of the following conditions is met, the performance obligation is fulfilled over time; otherwise, it is fulfilled at a time point:
(1) the customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs;
(2) the customer is able to control the goods under construction in the course of the Group's performance;
(3) the goods produced by the Group during the performance of the contract are irreplaceable and the Group has the right to charge for the accumulated part of the contract that has been performed so far during the whole contract period.
24.1 Performance obligation performed over time
For performance obligation performed over time, the Group recognises the revenue within a certain period of time according to the progress of the performance, except for those of which the progress of the performance cannot be reasonably determined. When determining the progress of performance of the aforesaid business, according to the nature of the business, the Group respectively adopts output and input methods to properly determine the progress of performance until the progress of performance can be reasonably determined.
24.2 Performance obligation performed at certain point of time
For performance obligation performance at certain point of time, the Group recognises revenue at a certain point in time when the customer obtains the "control" of the goods or services. In determining whether the customer has obtained the control over the goods, the Group considers the following indications:
(1) The Group has the right to receive the payment for the goods, i.e the client undertakes present payment obligation for such good.
(2) The Group has transferred the ownership of the goods to customer, i.e. the customer has obtained the ownership of the goods.
(3) The Group has physically transferred the goods to customer, i.e. the customer has physically owned the goods.
(4) The Group has transferred the major risks and rewards of the ownership of the goods to customer, i.e. the customer has obtained the major risks and rewards of the ownership of the
goods.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 24. Revenue - continued
24.2 Performance obligation performed at certain point of time - continued
(5) The customer has accepted the goods.
(6) Other indications showing the customer has obtained the control of the goods.
The following accounting policies are applicable to 2017:
24.3 Revenue from sale of goods
Revenue from sale of goods is recognised when (1) the Group has transferred to the buyer the significant risks and rewards of ownership of the goods; (2) the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; (3) the amount of revenue can be measured reliably; (4) it is probable that the associated economic benefits will flow to the Group; and (5) the associated costs incurred or to be incurred can be measured reliably
24.4 Revenue from rendering of services
The Group provides port services, bonded logistics service and other related harbor services to customers. Revenue from rendering of services is recognized when (1) the amount of revenue can be measured reliably; (2) it is probable that the associated economic benefits will flow to the enterprise; and (3) the associated costs incurred or to be incurred can be measured reliably. 25. Government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at no consideration. A government grant is recognized only when the Group can comply with the conditions attached to the grant and the Group will receive the grant. If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a government grant is in the form of a non-monetary asset, it is measured at fair value. If the fair value cannot be reliably determined, it is measured at a nominal amount. A government grant measured at a nominal amount is recognised immediately in profit or loss for the period.
25.1 Basis for determining and method of accounting of government grants related to assets Included in the Group's government grants, the modern logistic projects, traffic transportation energy-saving emission reduction special funds etc. are all related to the construction and use of assets, such government grants are assets-related government grants.
A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss over the useful life of the related asset.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 25. Government grants - continued
25.2 Basis for determing and method of accounting of government grants related to income Included in the Group's government grant, as the 2017 enterpriseR&D support funds etc. are used to compensate the related expenses or losses to be incurred in subsequent periods or incurred, they are determined as government grant relating to income.
A government grant relating to income, if used to compensate the related cost, expenses or losses to be incurred in subsequent periods, is determined as deferred income and recognized in profit or loss over the periods in which the related costs are recognized; if used to compensate the related cost, expenses or losses already incurred, is recognized immediately in profit or loss for the period. A government grant relating to the Group's daily activities, is recognized in other income in line with the nature of economic transaction. A government grant not relating to the Group's daily activities, is recognized in non-operating income.
26. Deferred tax assets/ deferred tax liabilities
The income tax expenses include current income tax and deferred income tax.
26.1 Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
26.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognized as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognized using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets for deductible temporary differences are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized. However, for temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognized.
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the deductible losses and tax credits can be utilized.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 26. Deferred tax assets/ deferred tax liabilities - continued
26.2 Deferred tax assets and deferred tax liabilities - continued
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates applicable in the period in which the asset is realized or the liability is settled according to tax laws.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except when they arise from transactions or events that are directly recognized in other comprehensive income or in equity, in which case they are recognized in other comprehensive income or in equity, and when they arise from business combinations, in which case they adjust the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it is no longer probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to be utilized. Any such reduction in amount is reversed when it becomes probable that sufficient taxable profits will be available.
26.3 Offset of income tax
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net basis.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 27. Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. 27.1 The accounting treatment of operating leases
27.1.1 The Group as lessee under operating leases
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for the period. Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are charged to profit or loss in the period in which they are actually incurred.
27.1.2 The Group as lessor under operating leases
Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs with more than an insignificant amount are capitalized when incurred, and are recognized in profit or loss on the same basis as rental income over the lease term. Other initial direct costs with an insignificant amount are charged in profit or loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the period in which they actually arise.
28. Safety Production Cost
According to the Administrative Rules on Provision and Use of Enterprise Safety Production Cost jointly issued by the Ministry of Finance and the State Administration of Work Safety on 14 February 2012 (filed as Cai Qi[2012] No. 16), safety production cost set aside by the Group is directly included in the cost of relevant products or recognized in profit or loss for the period, as well as the special reserve. When safety production cost set aside is utilized, if the costs incurred can be categorized as expenditure, the costs incurred should be charged against the special reserve. If the costs set aside are used to build up fixed assets, the costs should be charged to construction in progress, and reclassified to fixed assets when the safety projects are ready for intended use. Meantime, expenditures in building up fixed assets are directly charged against the special reserve with the accumulated depreciation recognized at the same amount. Depreciation will not be made in the future period on such fixed assets.
29. Critical judgments in applying accounting policies and key assumptions and
uncertainties in accounting estimates
In the application of accounting policies as set out in Note (III), the Company is required to make judgments, estimates and assumptions about the carrying amounts of items in the financial statements that cannot be measured accurately, due to the internal uncertainty of the operating activities. These judgments, estimates and assumptions are based on historical experiences of the Company's management as well as other factors that are considered to be relevant. Actual results may differ from these estimates.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 29. Critical judgments in applying accounting policies and key assumptions and
uncertainties in accounting estimates - continued
The Company regularly reviews the judgments, estimates and assumptions on a going concern basis. Changes in accounting estimates which only affect the current period should be recognized in current period; changes which not only affect the current but the future periods should be recognized in current and future periods. At the balance sheet date, key assumptions and uncertainties that are likely to lead to significant adjustments to the book values of assets and liabilities in the future are:
Goodwill impairment
For the purpose of impairment testing, the present value of the expected future cash flows of the assets group or portfolio including goodwill shall be calculated, and such expected future cash flows shall be estimated. Meantime, a pre-tax rate shall be determined that should reflect the time value of money on the current market and the specific asset risks.
Recognition of deferred tax
The Group calculates and makes provision for deferred income tax liabilities according to the profit distribution plan of subsidiaries, associates and the joint ventures subject to the related law. For retained earnings which are not allocated by the investment company, since the profits will be used to invest the company's daily operation and future development, no deferred income tax liabilities are recognized. If the actually distributed profits in the future are more or less than those expected, corresponding deferred tax liabilities will be recognized or reversed at the earlier of profits distribution date and the declaration date, in the profit and loss of the current period. Deferred tax assets are recognized based on the deductible temporary difference and the corresponding tax rate, to the extent that it has become probable that future taxable profit will be available for the deductible temporary difference. If in the future the actual taxable income does not coincide with the amount currently expected, the deferred tax assets resulting will be recognized or reversed in the period when actually incurred, in profit or loss.
30. Changes in Significant Accounting Policies
The Group adopts the new financial instrument standards and new revenue standards since 1 January 2018.
New financial instrument standards
Before the adoption of new financial instrument standards, the Group's financial assets are classified into financial assets at FVTPL, held-to-maturity investment, loans and receivable as well as available-for-sale financial assets; the accounting of impairment of financial assets is mainly based on the incurred loss method.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(III) SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued 30. Changes in Significant Accounting Policies - continued
New financial instrument standards - continued
After the adoption of new financial instrument standards, according to the business model of the financial assets and the characteristics of the contractual cash flows of the financial assets, the Group classifies the financial assets into at amoritized cost, financial assets at FVOCI and financial assets at FVTPL. The impairment of financial assets is accounted for using expected loss method. Meanwhile, the Group simplified the accounting of embedded derivatives and adjusted the accounting of non-trading equity instrument investment accordingly.
New revenue standards
Before adopting the new revenue standards, the Group considers the time when the major risks and rewards of the ownership of goods are transferred to the buyer as the standards for determining the point of time for revenue recognition; the Group provides port service, bonded logistics service and other labor service, and recognizes revenue from rendering of services when (1) the amount of revenue can be measured reliably; (2) it is probable that the associated economic benefits will flow to the enterprise; and (3) the associated costs incurred or to be incurred can be measured reliably
After adopting the new revenue standards, the Group distinguishes the performance obligations performed at certain point of time and over time. For performance obligation performed at certain point of time, the revenue is recognized at the point of time when the customer obtains the control of related goods (or service). For performance obligation performed over time, the Group recognizes the revenue within certain period of time according to the progress of performance, except when the progress of performance can't be reasonably determined.
(IV) TAXES
1. Major taxes and tax rates
||||
|-|-|-|
|Taxes|Tax basis|Tax rate|
|Enterprise income tax|Taxable income|25%|
|Value-added Tax|Load and unload income, tugboat income, trailer income,warehousing income and agency income|6%|
|("VAT")|||
||Taxable income from vehicle maintenance and utilities supplieson ships in shore|10%, 11%, 13%, 16%and 17% (Note 3)|
||Sales revenue of waste materials and lease income fromtangible movable property|3%, 16% and 17%|
||Taxable income from leases of immovable property and labor|5% and 6% (Note 2)|
|City maintenance and|dispatchingVAT paid|5% and 7% (Note 1)|
|construction tax|||
|Education surtax|VAT paid|3%|
|Regional education|VAT paid|2%|

Entities using different enterprise income tax rate:
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(IV) TAXES - continued
1. Major taxes and tax rates - continued
||||
|-|-|-|
|Name of entity||Enterprise income|
|Chiwan Wharf Holdings (Hong Kong) Limited|tax rate1 6.50%||
|Chiwan Shipping (Hong Kong) Limited|16.50%||
|Hinwin Development Limited|16.50%||
|Media Port Investments Limited|0%||
|Shiny Fame Limited|16.50%||

 Note 1: The subsidiaries set up in Shenzhen are subject to a city maintenance and construction tax rate of7%, and those set up in Dongguan are subject to a city maintenance and construction tax rate of5%.
Note 2: Pursuant to the Notice of the Ministry of Finance and the State Administration of Taxation ("SAT")on Full Launch of the Pilot Scheme on Levying Value-added Tax in Place of Business Tax (filed as Cai Shui[2016] No. 36), a full implementation of replacing business tax with VAT has been launched. Therefore, the Group is subject to VAT at11% and6% respectively for rental income from immovable property and income from labor dispatching since 1 May 2016.
Pursuant to the Interim Measures on Management of VAT Collection on Immovable Property Leases Provided by Taxpayers released by SAT(filed as the notice of SAT 2016 No.16), the Group, are entitled to VAT tax rate at5% based on simple tax method for immovable property leasing since 1 May 2016.
Note 3: Pursuant to the Notice of Adjustments to Value Added Tax Rates issued by the Ministry of Finance and the State Administration of Taxation ("SAT") (filed as Cai Shui[2018] No. 32), tax rates for taxpayers' transactions of taxable sales or imports of good applicable to the value added taxes, which are originally subject to a tax rate of17% and11% respectively, shall be adjusted to16% and10% respectively since 1 May 2018. Pursuant to the Notice of Policies on the Reduction and Combination of Value Added Tax Rates issued by the Ministry of Finance and the State Administration of Taxation ("SAT") (filed as Cai Shui[2017] No. 37), the applicable rate for taxpayers' sales of tap water has been adjusted to11% from13% since 1 May 2017.
2. Tax preference
On 8 July 2014, Machong Branch of National Taxation Bureau in Dongguan City approved that Dongguan Chiwan Terminal Co., Ltd ("DGT"), a subsidiary of the Group, was subject to tax preference of "3-year exemption followed by 3-year half reduction" commencing from 2014.
2018 is the second year that the income tax can be reduced by half for DGT (2017: half reduction
of enterprise income tax).
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(IV) TAXES - continued
2. Tax preference - continued
According to Doc.[2013] No.3 issued by Shekou Local Taxation Bureau in Shenzhen, the profits derived from berth13A# of Shenzhen Chiwan Harbour Container Co., Ltd ("CHCC"), was subject to tax preference of "3-year exemption followed by 3-year half reduction" commencing from 2012. The tax preference is expired in 2018, hence, the income tax for 2018 shall be fully paid. (2017: reduced by half).
According to the joint verification by Science and Technology Innovation Commission of Shenzhen Municipality, Finance Commission of Shenzhen Municipality, Shenzhen Provincial Office, SAT and Shenzhen Local Taxation Bureau, Chiwan Container Terminal Co., Ltd ("CCT"), a subsidiary of the Group, is a high-tech enterprise, and was subject to tax preference of 3-year enterprise income tax rate of15% commencing from 2017. Hence, CCT has calculated its income tax at a rate of15% in 2018 (2017:15%).
According to the Notice on Taxable Services Subject to "VAT" Tax Rate of Zero and Exemption issued by the Ministry of Finance and State Administration of Taxation (filed as Cai Shui[2011] No.131), and approvals released by Shekou National Taxation Bureau in Shenzhen (filed as Shen Guo Shui She Jian Mian Bei[2015] No.0153 and[2015] rNo.0154 respectively), Shenzhen Mawan Port Co., Ltd., Shenzhen Mawan Terminals Co., Ltd., CCT, CHCC and Shenzhen Chiwan International Freight Agency Co., Ltd, the subsidiaries of the Group, are exempted from VAT when providing logistics support service to overseas enterprises except for warehousing service. According to the Notice on Preferential Policies and Preferential Catalogues of Enterprises' Income Tax in Shenzhen, Qianhai, Hong Kong - Shenzhen Modern Service Industry Cooperation Zone issued by the Ministry of Finance and State Administration of Taxation, to facilitate the development of Hong Kong - Shenzhen modern service industry in Qianhai, the subsidiaries of the Group, Shenzhen Mawan Wharf Co., Ltd., Shenzhen Mawan Port Co, Ltd. and Shenzhen Mawan Terminals Co., Ltd., are qualified companies for the conditions of preferential tax policies and are subject to a15% income tax rate from 1 January 2014 to 31 December 2020. The income tax rate applied for above-mentioned companies in 2018 is15% (2017:15%).
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Unit: RMB
||||
|-|-|-|
||Closing balance|Opening balance|
|Cash|||
|RMB|101.22|4,571.01|
|USD|469.78|472.68|
|HKD|7,339.77|8,463.74|
|Subtotal|7,910.77|13,507.43|
|Bank deposit|||
|RMB|379,899,264.20|511,080,264.02|
|USD|22,780,238.81|207,753,058.97|
|HKD|65,168,759.78|98,916,257.63|
|Subtotal|467,848,262.79|817,749,580.62|
|Other cash and bank balances (Note)|||
|RMB|431,352.44|430,591.27|
|USD|-|-|
|HKD|-|-|
|Subtotal|431,352.44|430,591.27|
|Total|468,287,526.00|818,193,679.32|
|Including: The total amount of funds deposited overseas|29,015,046.82|9,138,298.28|

 Note: Other cash and bank balances is mainly the amount deposited in the securities settlement account of China Merchants Securities Co., Ltd.
2. Notes receivable
Unit: RMB
||||
|-|-|-|
|Category|Closing balance|Opening balance|
|Bank acceptance bills|-|500,000.00|

 Note: There is no notes receivable pledged, endorsed or discounted at the year end.
3. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: RMB
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Closing balance||||||||||Opening balance|||||||||
||||Carrying amount||||Bad debt provision||||Book value||Carrying amount||||Bad debt provision||||Book value|
||||||Proportion||||Proportion||||||Proportion||||Proportion|||
||Item||Amount||(%)||Amount||(%)||||Amount||(%)||Amount||(%)|||
|Insiinda|dividually|-||-||-||-||-||-||-||-||-||-||
||gnificant and|||||||||||||||||||||
||dependently bad|||||||||||||||||||||
||ebt provision|||||||||||||||||||||
||ssessed accounts|||||||||||||||||||||
|A|ccounts receivable for which bad debt provision has been assessed by credit risk portfolios|||||||||||||||||||||
|P|ortfolio 1|8,569,429.96||2.78||-||-||8,569,429.96||6,426,396.40||2.48||-||-||6,426,396.40||
|P|ortfolio 2|299,028,365.01||97.01||550,652.22||0.18||298,477,712.79||247,603,038.77||95.84||307,965.73||0.12||247,295,073.04||
|Sp|ubtotal of|307,597,794.97||99.79||550,652.22||0.18||307,047,142.75||254,029,435.17||98.32||307,965.73||0.12||253,721,469.44||
||ortfolios|||||||||||||||||||||
|Insiinda|dividually|638,203.00||0.21||638,203.00||100.00||-||4,332,576.39||1.68||972,084.00||22.44||3,360,492.39||
||gnificant and|||||||||||||||||||||
||dependently bad|||||||||||||||||||||
||ebt provision|||||||||||||||||||||
||ssessed accounts|||||||||||||||||||||
|T|otal|308,235,997.97||100.00||1,188,855.22||0.39||307,047,142.75||258,362,011.56||100.00||1,280,049.73||0.50||257,081,961.83||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 3. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued
Accounts receivable portfolios for which bad debt provision has been assessed using the aging analysis approach:
Unit: RMB
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Closing balance||||||||Opening balance||||||
||||Carrying||Bad debt||Proportion||||Carrying|Bad debtprovision||Proportion(%)|||
||Aging||amount||provision||(%)||Book value||amount|||||Book value|
|W|ithin 1 year|298,116,644.13||354,188.33||0.12||297,762,455.80||247,012,608.73||175,921.39|0.07||246,836,687.34||
|Mnye|ore than 1 year but|893,734.00||178,746.80||20.00||714,987.20||572,447.76||114,489.55|20.00||457,958.21||
||ot exceeding 2||||||||||||||||
||ars||||||||||||||||
|Mbye|ore than 2 years|539.58||269.79||50.00||269.79||854.98||427.49|50.00||427.49||
||ut not exceeding 3||||||||||||||||
||ars||||||||||||||||
|M|ore than 3 years|17,447.30||17,447.30||100.00||-||17,127.30||17,127.30|100.00||-||
|T|otal|299,028,365.01||550,652.22||0.18||298,477,712.79||247,603,038.77||307,965.73|0.12||247,295,073.04||

 (2) Bad debt provision increase, reversal and written-off
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||Decrease|||
|Item|Opening balance|Increase|Reversal|Write-off|Closing balance|
|Accounts receivable|1,280,049.73|-|91,194.51|-|1,188,855.22|

 (3) There are no accounts receivables that have been written off during the year.
(4) Top five balances of accounts receivable classified by debtor
Unit: RMB
||||||
|-|-|-|-|-|
||||Proportion of the||
||Relationship with||amount to the total|Bad debt|
|Name of customer|the Company|Amount|accounts receivable (%)|provision|
|Customer A|Customer|70,694,182.62|22.94|15,151.45|
|Customer B|Customer|18,845,603.78|6.11|295,085.00|
|Customer C|Customer|18,247,753.11|5.92|76,820.42|
|Customer D|Customer|15,855,178.00|5.14|-|
|Customer E|Customer|13,930,886.08|4.52|21,920.59|
|Total||137,573,603.59|44.63|408,977.46|

 4. Prepayments
(1) Prepayments presented by aging
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging|Amount|Proportion (%)|Amount|Proportion (%)|
|Within 1 year|2,340,151.37|98.54|4,320,070.94|99.20|
|More than 1 year but not exceeding 2 years|34,759.22|1.46|34,759.22|0.80|
|More than 2 years but not exceeding 3 years|-|-|-|-|
|Total|2,374,910.59|100.00|4,354,830.16|100.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 4. Prepayments - continued
(2) Top five balances of prepayments classified by entities
Unit: RMB
|||||
|-|-|-|-|
||||Proportion of the closing|
||Relationship with||balance to the total|
|Entities|the Company|Closing balance|prepayments (%)|
|China Pacific Property Insurance Co., Ltd Dongguan|Supplier|634,708.37|26.73|
|Branch||||
|The People's Insurance Company (Group) of China|Supplier|563,647.54|23.73|
|Limited. Shenzhen Branch||||
|China Pacific Property Insurance Co., Ltd Dongguan|Supplier|465,170.71|19.59|
|Shenzhen Branch||||
|Beijing Heng Xin Qi Hua Information Technology Co., Ltd.|Supplier|185,534.16|7.81|
|China Life Insurance Co., Ltd Shenzhen Branch|Supplier|129,434.70|5.45|
|Total||1,978,495.48|83.31|

 (3) The Group has no significant prepayment aging over one year.
5. Interest receivable
(1) Interest receivable
Unit: RMB
||||||
|-|-|-|-|-|
|Category||Closing balance||Opening balance|
|Fixed term deposit|95,277.78||1,175,305.39||

 (2) The Group has no significant overdue interest.
6. Dividends receivable
(1) Dividends receivable
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Opening||||||Closing||Impairment|
|Item||balance||Increase||Decrease||balance||appeared or not|
||-||38,562,004.83||38,562,004.83||-||No||
|COHA (Laizhou)|||||||||||
||-||7,788,975.00||7,788,975.00||-||No||
|China Ocean Shipping Agency (Shenzhen)|||||||||||
|Co., Ltd ("Ocean Shipping Agency")|||||||||||
|Total|-||46,350,979.83||46,350,979.83||-||||

(2) The Group has no dividends receivable aging more than one year.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 7. Other receivables
(1) Disclosure of other receivables by categories:
Unit: RMB
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Closing balance|||||||||Opening balance|||||||||
|||Carrying amount||||Bad debt provision|||||Carrying amount||||Bad debt provision|||||
|||||Proportion|||P|roportion|||||Proportion|||||||
|Category||Amount||(%)||Amount||(%)||Book value|Amount||(%)||Amount||Proportion (%)||Book value|
|Other receivables|-||-||-||-||-||-|-||-||-||-||
|that are individually||||||||||||||||||||
|significant and for||||||||||||||||||||
|which bad debt||||||||||||||||||||
|provision has been||||||||||||||||||||
|assessed individually||||||||||||||||||||
|Other receivables for which bad debt provision has been assessed by credit risk portfolios||||||||||||||||||||
|Portfolio 1|12,098,722.65||68.03||100,000.00||0.83||11,998,722.65||14,909,269.24|68.48||100,000.00||0.67||14,809,269.24||
|Portfolio 2|5,684,866.70||31.97||463,424.48||8.15||5,221,442.22||6,863,693.53|31.52||463,424.48||6.75||6,400,269.05||
|Subtotal of portfolios|17,783,589.35||100.00||563,424.48||3.17||17,220,164.87||21,772,962.77|100.00||563,424.48||2.59||21,209,538.29||
|Other receivables|-||-||-||-||-||-|-||-||-||-||
|that are not||||||||||||||||||||
|individually||||||||||||||||||||
|significant but for||||||||||||||||||||
|which bad debt||||||||||||||||||||
|provision has been||||||||||||||||||||
|assessed individually||||||||||||||||||||
|Total|17,783,589.35||100.00||563,424.48||3.17||17,220,164.87||21,772,962.77|100.00||563,424.48||2.59||21,209,538.29||

 Other receivables portfolios for which bad debt provision has been assessed using the aging analysis Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Closing balance||||||||Opening balance||||||
|||Carrying||Bad debt||Proportion||||Carryingamount||Bad debt|Proportion(%)|||
|Aging||amount||provision||(%)||Book value||||provision|||Book value|
|Within 1 year|5,221,442.22||-||-||5,221,442.22||6,400,269.05||-||-|6,400,269.05||
|More than 1 year|-||-||-||-||-||-||-|-||
|but not exceeding||||||||||||||||
|2 years||||||||||||||||
|More than 3 years|463,424.48||463,424.48||100.00||-||463,424.48||463,424.48||100.00|-||
|Total|5,684,866.70||463,424.48||8.15||5,221,442.22||6,863,693.53||463,424.48||6.75|6,400,269.05||

 (2) Increase, reverse and write-off of bad debt provision
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Decrease|||
|Item||Opening balance|Increase|Reversal|Write-off|Closing balance|
|Other rece|ivable|563,424.48|-|-|-|563,424.48|

 (3) Other receivable has not been written off during the year.
(4) Disclosure of other receivables by nature
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Temporary payments|9,740,107.39|10,351,198.79|
|Deposits|4,072,364.41|5,523,098.82|
|Others|3,971,117.55|5,898,665.16|
|Total|17,783,589.35|21,772,962.77|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 7. Other receivables - continued
(5) Top five balances of other receivables classified by creditors
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of the||
|||||amount to the||
|||||total accounts|Bad debt|
|Name of company|Nature of the fund|Amount|Aging|receivable (%)|provision|
||Temporary paymentsfrom related parties|4,747,624.49|Within 1 yearand 1 to 2years|26.70|-|
|CMBL||||||
||Deposits andguarantee|1,600,000.00|Within 1 year|9.00|-|
|Finance Department of Ministry of Transport||||||
||Temporary paymentsfrom non-relatedparties|1,508,116.52|More than 1years|8.48|-|
|Shenzhen Nanhai Grains Industry Co., Ltd||||||
||Temporary paymentsfrom related parties|1,115,590.39|Within 1 year|6.27|-|
|China Nanshan Development (Group) Incorporation||||||
|("Nanshan Group")||||||
||Temporary paymentsfrom related parties|1,088,414.30|2 to 3 yearsand more than3 years|6.12|-|
|Shenzhen China Merchants Qianhaiwan Property Co.,||||||
|Ltd.||||||
|Total||10,059,745.70||56.57|-|

 8. Inventories
(1) Categories of inventories
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|||Provision for|||Provision for||
||Carrying|decline in value||Carrying|decline in value||
|Item|amount|of inventories|Book value|amount|of inventories|Book value|
|Spare parts|16,844,532.26|972,744.93|15,871,787.33|22,247,160.09|972,744.93|21,274,415.16|
|Fuel|619,179.50|-|619,179.50|588,064.94|-|588,064.94|
|Total|17,463,711.76|972,744.93|16,490,966.83|22,835,225.03|972,744.93|21,862,480.10|

 (2) Provision for decline in value of inventories
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||Decrease|||
|Item|Opening balance|Increase|Reversal|Write-off|Closing balance|
|Spare parts|972,744.93|-|-|-|972,744.93|

 9. Other current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Added-value tax to be certified and deducted|24,561,374.56|33,491,432.18|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 10. Available-for-sale financial assets
(1) Available-for-sale financial assets
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Closing balance||||Opening balance|||||
|||Carryingamount|Provision forimpairment|||Carryingamount||Provision for|||
|Item|||||Book value|||impairment||Book value|
|Available-for-sale equity|-||-|-||26,887,500.00|3,128,300.00||23,759,200.00||
|instruments|||||||||||
|Measured at fair value|-||-|-||9,850,000.00|-||9,850,000.00||
|Measured at cost|-||-|-||17,037,500.00|3,128,300.00||13,909,200.00||
|Total|-||-|-||26,887,500.00|3,128,300.00||23,759,200.00||

 (2) Available-for-sale financial assets measured at fair value at the end of the year
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase|||||
|Classification of available-for-sale|Openingbalance|||Transfer to other investments||Closing|
|financial assets||||in equity instruments||balance|
|Cost of equity instruments|1,120,000.00|-|1,120,000.00||-||
|Fair value|9,850,000.00|-|9,850,000.00||-||
|Accumulated amount of changes in fair|8,730,000.00|-|8,730,000.00||-||
|value included in the other|||||||
|comprehensive income|||||||
|Provision amount for impairment|-|-|-||-||

 Note: The available-for-sale financial assets held by the Company represent the circulating shares of Jiang Su Ninghu Expressway Co., Ltd. at the end of the year.
(3) Available-for-sale financial assets measured at cost at the end of the year
Unit: RMB
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Carrying amount|||||||Provision for impairment||||||||
||||||Tinin|ransfer to|||Openingbalance|||Transfer to|||||
|||||||other||||||other||||Proportion of|
|||||||vestments||||||investments||||ownership|
|||Opening||||in equity||Closingbalance||||in equity||Closing||interests in the|
|Investees||balance||Increase||struments||||Increase||instruments||balance||investee (%)|
|Shenzhen Petro-chemical|3,500,000.00||-||3,500,000.00||-||3,117,800.00|-|3,117,800.00||-||0.26||
|Industry (Group) Co., Ltd|||||||||||||||||
|Guangdong Guang Jian|27,500.00||-||27,500.00||-||10,500.00|-|10,500.00||-||0.02||
|Group Co., Ltd|||||||||||||||||
|China Ocean Shipping|13,510,000.00||-||13,510,000.00||-||-|-|-||-||15.00||
|Agency (Shenzhen) Co.,|||||||||||||||||
|Ltd("Ocean Shipping|||||||||||||||||
|Agency")|||||||||||||||||
||17,037,500.00||-||17,037,500.00||-||3,128,300.00|-|3,128,300.00||-||||
|Total|||||||||||||||||

Note: The available-for-sale financial assets measured at cost are equity investments of Shenzhen Petro-chemical Industry (Group) Co., Ltd, Guangdong Guang Jian Group Co., Ltd and Ocean Shipping Agency. None of the stocks of above-mentioned companies are traded in market or fair value could be measured reliably, hence, the Group measures these equity investments under cost method.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 10. Available-for-sale financial assets - continued
(4) Movements of available-for-sale financial assets in the reporting period
Unit: RMB
||||
|-|-|-|
|||Available-for-sale equity|
|Classification of available-for-sale financial assets||instruments|
|Provision amount for impairment at the beginning of the year|3,128,300.00||
|Increase in the current period|-||
|Decrease in the current period|-||
|Transfer to other investments in equity instruments in the current period|3,128,300.00||
|Provision amount for impairment at the end of the year|-||

 11. Other investments in equity instruments
(1) Other investments in equity instruments
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Closing balance||||||Opening balance|||||
|||Carrying||Provision for||||Carrying||Provision for|||
|Item||amount||impairment||Book value||amount||impairment||Book value|
|Investments in equity|149,592,140.00||3,128,300.00||146,463,840.00||-||-||-||
|instruments at FVTOCI|||||||||||||

Note: The fair value of investments in equity instruments at FVTOCI is determined based on the method as set out in Note IX to the consolidated financial statements.
(2) Other investments in equity instruments measured at fair value at the end of the year Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Changes in fair value|||||
|||||cumulatively included||||Cash|
|||||in other||Fair value at the end||dividends for|
|Investees||Cost||comprehensive income||of the year||the period|
|Jiang Su Ninghu Expressway Co., Ltd.|1,120,000.00||7,950,000.00||9,070,000.00||-||
|China Ocean Shipping Agency|13,510,000.00||123,484,640.00||136,994,640.00||7,788,975.00||
|(Shenzhen) Co., Ltd("Ocean Shipping|||||||||
|Agency")|||||||||
|Shenzhen Petro-chemical Industry|3,500,000.00||-||382,200.00||-||
|(Group) Co., Ltd|||||||||
|Guangdong Guang Jian Group Co., Ltd|27,500.00||-||17,000.00||-||
|Total|18,157,500.00||131,434,640.00||146,463,840.00||7,788,975.00||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 11. Other investments in equity instruments - continued
(3) Impairments of other equity instruments measured at fair value at the end of the year Unit: RMB
||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Carrying amount||||||||Provision for impairment|||||||||
|||||||Transfer from||||||||Transfer from||||Proportion of|
|||||||available-for-sale||||||||available-for-sale||||ownership|
|||Opening||||financial assets in||Closing||Opening||||financial assets in||Closing||interests in the|
|Investees||balance||Increase||the current period||balance||balance||Increase||the current period||balance||investee (%)|
|Shenzhen Petro-|-||-||3,500,000.00||3,500,000.00||-||-||3,117,800.00||3,117,800.00||0.26||
|chemical Industry|||||||||||||||||||
|(Group) Co., Ltd|||||||||||||||||||
|Guangdong Guang Jian|-||-||27,500.00||27,500.00||-||-||10,500.00||10,500.00||0.02||
|Group Co., Ltd|||||||||||||||||||
||-||-||3,527,500.00||3,527,500.00||-||-||3,128,300.00||3,128,300.00||||
|Total|||||||||||||||||||

Note: As shares of Shenzhen Petro-chemical Industry (Group) Co., Ltd. and Guangdong Guang Jian Group Co., Ltd have been delisted and the Company has accordingly made provision for impairment, the Group considers the carrying amounts of such equity investments approximate their fair values.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
12. Long-term equity investments
Unit: RMB
|||||||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Changes||||||||||||||||||||||
||||||||||||||||Investment profit||Reconciling items from||||Cash dividends o|r|||||||||Closing value of|
|||||Accounting|||||||||||or loss under||other comprehensive||Other equity||profits announced|||Provision for||Change in scop|e||||provision for|
||Investees|||method||Investment cost||Opening balance||Increase||Decreas|e||equity method||income||movements||of issuance|||impairment||of consolidation|||Closing balance||impairment|
|I.|Joint ventures|||||||||||||||||||||||||||||||
||||Equitymethod||749,655,300.00||783,668,303.84||-||-|||26,216,000.00||-||-||(38,562,004.83)|||-||-|||771,322,299.01||-||
|C|OHA (Laizhou) (Note 1)|||||||||||||||||||||||||||||||
|HI|unan Changsha Xianing||Equitymethod||2,500,000.00||2,487,441.63||-||-|||(245,876.96)||-||-||-|||-||(2,241,564.67)|||-||-||
||nland Port Co., Ltd.|||||||||||||||||||||||||||||||
|S|ubtotal||||752,155,300.00||786,155,745.47||-||-|||25,970,123.04||-||-||(38,562,004.83)|||-||(2,241,564.67)|||771,322,299.01||-||
|II|. Associates|||||||||||||||||||||||||||||||
|C(IT|hina Merchants Holdings||Equitymethod||1,875,000.00||16,875,997.65||-||-|||1,563,300.00||-||-||-|||-||-|||18,439,297.65||-||
||nternational) Information|||||||||||||||||||||||||||||||
||echnology Co., Ltd|||||||||||||||||||||||||||||||
||||Equitymethod||280,000,000.00||349,588,296.85||-||-|||9,848,000.00||-||-||-|||-||-|||359,436,296.85||-||
|C|MBL|||||||||||||||||||||||||||||||
||||Costmethod/equity method||139,932.00||-||-||-|||8,299,439.10||-||-||-|||-||403,575,495.50|||411,874,934.60||-||
|M(|edia Port Investments Limite|d||||||||||||||||||||||||||||||
||"MPIL") (Note 2)|||||||||||||||||||||||||||||||
|S|ubtotal||||282,014,932.00||366,464,294.50||-||-|||19,710,739.10||-||-||-|||-||403,575,495.50|||789,750,529.10||-||
|T|otal||||1,034,030,300.00||1,152,620,039.97||-||-|||45,680,862.14||-||-||(38,562,004.83)|||-||401,333,930.83|||1,561,072,828.11||-||

 Note 1: The Company holds40% equity interests in COHA (Laizhou). According to its articles of incorporation, significant matters such as operating decisions can be passed only when jointly approved by directors of the Company and the other ventures. Therefore, COHA (Laizhou) is deemed to be under common control of Chiwan Wharf and the other shareholders; accordingly COHA (Laizhou) is accounted for as a joint venture.
Note 2: On 30 September 2002, China Merchants Port Holdings Co., Ltd (the "CMPH", formerly known as China Merchants Holdings (International)Co., Ltd.) and Shenzhen South Oil (Group) Co., Ltd (the "SSOG") entered into an agreement called "Agreement on Cooperation and Development of Mawan Port" (the "Development Agreement") to incorporate three joint ventures, namely Shenzhen Mawan Wharf Co., Ltd. ("SMW"), SMP and Shenzhen Mawan Terminals Co., Ltd.("SMT") (together referred to as "Mawan Companies"), to
construct and operate the berth0#,5#,6#,7# and8# in Mawan Port. According to the Development Agreement, CMPH and the Group will
jointly set up MPIL with equal percentage of equity held respectively. MPIL then incorporates the abovementioned three joint ventures
together with SSOG, and MPIL has60% equity in each of the three joint ventures.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 13. Investment properties
(1) Investment properties measured under cost method
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Item||Opening balance||Increase||Decrease||Closing balance|
|I|. Total original carrying amount|43,579,258.14||-||-||43,579,258.14||
|1|. Buildings|14,947,127.30||-||-||14,947,127.30||
|2|. Land use right|28,632,130.84||-||-||28,632,130.84||
|I|I. Total accumulated depreciation and|20,758,176.45||412,916.04||-||21,171,092.49||
|a1|mortization. Buildings|5,775,857.04||156,179.82||-||5,932,036.86||
|2|. Land use right|14,982,319.41||256,736.22||-||15,239,055.63||
|I|II. Total net book value of investment|22,821,081.69||||||22,408,165.65||
|p1|roperty. Buildings|9,171,270.26||||||9,015,090.44||
|2|. Land use right|13,649,811.43||||||13,393,075.21||
|Ipi|V. Total accumulated amount of|-||-||-||-||
||rovision for impairment losses of|||||||||
||nvestment property|||||||||
|1|. Buildings|-||-||-||-||
|2|. Land use right|-||-||-||-||
|p|V. Total carrying value of investment|22,821,081.69||||||22,408,165.65||
||roperty|||||||||
|1|. Buildings|9,171,270.26||||||9,015,090.44||
|2|. Land use right|13,649,811.43||||||13,393,075.21||

 (2) Investment properties without ownership certificates
As of 30 June 2018, the Group has not obtained any ownership certificates of investment properties. For buildings located within the scope of Chiwan watershed with net book value of RMB 19,340,913.38 (original carrying amount: RMB40,030,725.05 ), the underlying reasons and management's resolutions for obtaining certificates of title are set out in Note (V) 16, and the rest certificates of title are under the process of application.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 14. Fixed assets
(1) Fixed assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Decrease due to||
|||||changes in scope of||
|Item|Opening balance|Increase|Decrease|consolidation|Closing balance|
|I. Total original carrying amount|7,683,045,484.80|15,863,384.60|5,770,083.42|1,881,071,780.36|5,812,067,005.62|
|Including: Port and terminal facilities|2,843,011,382.40|3,432,770.00|701,707.15|818,117,880.43|2,027,624,564.82|
|Container yards and buildings|1,311,615,254.63|2,290,504.44|3,496,694.48|39,815,468.14|1,270,593,596.45|
|Mechanical equipment|3,047,316,001.12|6,342,822.48|-|946,609,428.49|2,107,049,395.11|
|Motor vehicles, cargo ships and|277,984,786.78|1,349,497.11|1,050,261.00|2,944,661.32|275,339,361.57|
|tugboats||||||
|Other equipment|203,118,059.87|2,447,790.57|521,420.79|73,584,341.98|131,460,087.67|
|II. Total accumulated depreciation|3,696,270,297.24|136,543,922.18|4,393,106.49|1,152,600,786.55|2,675,820,326.38|
|Including: Port and terminal facilities|842,819,234.19|31,072,008.61|643,530.54|331,650,682.44|541,597,029.82|
|Container yards and buildings|322,930,111.48|17,922,571.13|2,358,079.86|15,867,122.47|322,627,480.28|
|Mechanical equipment|2,214,579,586.28|75,636,388.66|-|741,442,797.48|1,548,773,177.46|
|Motor vehicles, cargo ships and|161,559,015.73|7,142,399.89|1,168,530.02|2,027,110.74|165,505,774.86|
|tugboats||||||
|Other equipment|154,382,349.56|4,770,553.89|222,966.07|61,613,073.42|97,316,863.96|
|III. Total net book value of fixed assets|3,986,775,187.56||||3,136,246,679.24|
|Including: Port and terminal facilities|2,000,192,148.21||||1,486,027,535.00|
|Container yards and buildings|988,685,143.15||||947,966,116.17|
|Mechanical equipment|832,736,414.84||||558,276,217.65|
|Motor vehicles, cargo ships and|116,425,771.05||||109,833,586.71|
|tugboats||||||
|Other equipment|48,735,710.31||||34,143,223.71|
|IV. Total provision for impairment losses|57,419,468.96|-|-|-|57,419,468.96|
|Including: Port and terminal facilities|4,261,599.48|-|-|-|4,261,599.48|
|Container yards and buildings|53,157,869.48|-|-|-|53,157,869.48|
|Mechanical equipment|-|-|-|-|-|
|Motor vehicles, cargo ships and|-|-|-|-|-|
|tugboats||||||
|Other equipment|-|-|-|-|-|
|V. Total carrying value of fixed assets|3,929,355,718.60||||3,078,827,210.28|
|Including: Port and terminal facilities|1,995,930,548.73||||1,481,765,935.52|
|Container yards and buildings|935,527,273.67||||894,808,246.69|
|Mechanical equipment|832,736,414.84||||558,276,217.65|
|Motor vehicles, cargo ships and|116,425,771.05||||109,833,586.71|
|tugboats||||||
|Other equipment|48,735,710.31||||34,143,223.71|

 Note 1: The increase of total original carrying amount for current period consists of new acquisition of RMB 2,550,223.60, and an increase of RMB 13,313,161.00 transferred
from construction in progress. The decrease of total original carrying amount for current
period consists of a decrease of RMB 4,455,203.42 resulting from disposal of fixed assets,
and a decrease of RMB 1,314,880.00 resulting from renovation and expansion transferred
into construction in progress.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 14. Fixed assets - continued
(1) Fixed assets - continued
Note 2: The increase in accumulated depreciation for current period consists of charge for the current period of RMB 136,543,922.18. The decrease in accumulated depreciation for current period consists of a decrease of RMB 3,209,714.49 resulting from disposal of fixed assets, and a decrease of RMB 1,183,392.00 resulting from renovation and expansion transferred into construction in progress.
Note 3: As of 30 June 2018, the Group has no fixed assets that used as collateral.
Note 4: As of 30 June 2018, the certificates of title for the Group's buildings with a net book value of RMB 491,708,872.10(total original carrying amount: RMB 631,180,877.86) have not yet been obtained. For buildings located within the scope of Chiwan watershed with net book value of RMB 27,736,980.47(original carrying amount: RMB 118,960,638.21), the underlying reasons and management's solutions for obtaining certificates of title are set out in Note (V) 16, and the rest certificates of title are under the process of application. (2) Other issues
Unit: RMB
||||||
|-|-|-|-|-|
||Item||Amount|Note|
|J|The original amounts of fixed assets fully depreciated but still in use at 30|903,366,475.81|||
||une 2018||||
||Closing original amount of temporary idle fixed assets|-|||
|F|ixed assets disposed or retired in the current period||||
||Original amount of fixed assets disposed or retired in the current period|4,019,471.44|||
||Net book value of fixed assets disposed or retired in the current period|955,603.10|||
||Gains or losses on disposal or retire of fixed assets|19,702.38|||

15. Construction in progress
(1) Details of construction in progress are as follows:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|||Provision for|||Provision for||
|Item|Carrying amount|impairment|Book value|Carrying amount|impairment|Book value|
|Ship-to-shore electricity|15,629,277.18|-|15,629,277.18|13,924,096.37|-|13,924,096.37|
|project, Chiwan Port|||||||
|Sea channel dredging and|11,666,174.28|-|11,666,174.28|-||-|
|expansion work at the|||||||
|western area of Shenzhen|||||||
|Port|||||||
|Relavant construction|5,604,597.87|-|5,604,597.87|5,397,252.58|-|5,397,252.58|
|work of 50.86 meters|||||||
|coastline, Machong Port|||||||
|Phase III Project of Grain|3,395,412.94|-|3,395,412.94|1,760,873.59||1,760,873.59|
|Dispatch Warehouse at|||||||
|2#,3# Berth at Machong|||||||
|Port|||||||
|CCTV Digital Upgrade at|1,629,355.20|-|1,629,355.20|-||-|
|Customs|||||||
|RTG remote control|-||-|28,862,136.68|-|28,862,136.68|
|system, Mawan Port|||||||
|Others|29,749,621.17|-|29,749,621.17|36,373,307.48|-|36,373,307.48|
|Total|67,674,438.64|-|67,674,438.64|86,317,666.70|-|86,317,666.70|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
15. Construction in progress - continued
(2) Changes in significant construction in progress
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Transfer to||||Proportion of|||Including:|Interest||
|||||fixed||||accumulated||Amount of|capitalized|capitalization||
|||||assets/intangible|Decrease due to|Decrease in||construction||accumulated|interest for|rate for the||
|||Opening|Increase in the|assets in the|changes in scope of|the current|Closing|investment in budget|Construction|capitalized|the current|current|Capital|
|Item|Budget amount|balance|current period|current period|consolidation|period|balance|(%)|progress (%)|interest|period|period (%)|source|
|RTG remote control|46,562,033.00|28,862,136.68|436,194.01|-|29,298,330.69|-|-|62.92|62.92|-|-|-|Self-fundingand loan|
|system, Mawan Port||||||||||||||
|Ship-to-shore electricity|18,860,000.00|13,924,096.37|1,705,180.81|-|-|-|15,629,277.18|82.87|82.87|-|-|-|Self-funding|
|project, Chiwan Port||||||||||||||
|Relavant construction|36,000,000.00|5,397,252.58|207,345.29|-|-|-|5,604,597.87|15.57|15.57|-|-|-|Self-funding|
|work of 50.86 meters||||||||||||||
|coastline, Machong Port||||||||||||||
|Phase III Project of Grain|680,000,000.00|1,760,873.59|1,634,539.35|-|-|-|3,395,412.94|0.50|0.50|-|-|-|Self-funding|
|Dispatch Warehouse at||||||||||||||
|2#,3# Berth at Machong||||||||||||||
|Port||||||||||||||
|Sea channel dredging and|65,000,000.00|-|11,666,174.28|-|-|-|11,666,174.28|17.95|17.95|-|-|-|Self-funding|
|expansion work at the||||||||||||||
|western area of Shenzhen||||||||||||||
|Port||||||||||||||
|CCTV Digital Upgrade at|5,149,100.00|-|1,629,355.20|-|-|-|1,629,355.20|31.64|31.64|-|-|-|Self-funding|
|Customs||||||||||||||
||369,696,816.24|36,373,307.48|21,778,784.57|13,679,277.45|13,015,240.71|1,707,952.72|29,749,621.17|15.73|15.73|-|-|-|Self-funding|
|Others||||||||||||||
|Total|1,221,267,949.24|86,317,666.70|39,057,573.51|13,679,277.45|42,313,571.40|1,707,952.72|67,674,438.64|||-|-|||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 16. Intangible assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Decrease due to||
||Opening carrying|||changes in scope of|Closing carrying|
|Item|amount|Increase|Decrease|consolidation|amount|
||2,106,291,774.55|1,550,129.23(Note1)|-|511,372,756.42|1,596,469,147.36|
|I. Total original carrying amount||||||
|Land use rights - prepaid under lease|1,187,877,493.00|-|-|501,662,555.00|686,214,938.00|
|(Note 3)||||||
|Land use rights - prepaid under|624,286,031.00|-|-|-|624,286,031.00|
|investment (Note 3)||||||
|Land use rights - purchased|116,702,512.59|-|-|-|116,702,512.59|
|Computer software|45,485,587.96|1,550,129.23|-|9,710,201.42|37,325,515.77|
|Sea area use rights|71,940,150.00|-|-|-|71,940,150.00|
|Coast line use rights|60,000,000.00|-|-|-|60,000,000.00|
||756,066,776.01|23,478,101.11(Note2)|-|140,160,571.63|639,384,305.49|
|II. Total accumulated amortization||||||
|Land use rights - prepaid under lease|504,266,252.86|13,854,960.28|-|-|518,121,213.14|
|(Note 3)||||||
|Land use rights - prepaid under|191,493,463.36|5,649,639.91|-|131,887,768.65|65,255,334.62|
|investment(Note 3)||||||
|Land use rights - purchased|11,248,071.16|1,193,113.08|-|-|12,441,184.24|
|Computer software|33,840,409.66|1,367,225.96|-|8,272,802.98|26,934,832.64|
|Sea area use rights|11,287,270.15|719,401.50|-|-|12,006,671.65|
|Coast line use rights|3,931,308.82|693,760.38|-|-|4,625,069.20|
|III. Total net carrying amount of|1,350,224,998.54||||957,084,841.87|
|intangible assets||||||
|Land use rights - prepaid under lease|683,611,240.14||||168,093,724.86|
|(Note 3)||||||
|Land use rights - prepaid under|432,792,567.64||||559,030,696.38|
|investment(Note 3)||||||
|Land use rights - purchased|105,454,441.43||||104,261,328.35|
|Computer software|11,645,178.30||||10,390,683.13|
|Sea area use rights|60,652,879.85||||59,933,478.35|
|Coast line use rights|56,068,691.18||||55,374,930.80|
|IV. Total provision for impairment losses|-|-|-|-|-|
|Land use rights - prepaid under lease|-|-|-|-|-|
|(Note 3)||||||
|Land use rights - prepaid under|-|-|-|-|-|
|investment(Note 3)||||||
|Land use rights - purchased|-|-|-|-|-|
|Computer software|-|-|-|-|-|
|Sea area use rights|-|-|-|-|-|
|Coast line use rights|-|-|-|-|-|
|V. Total carrying value of intangible|1,350,224,998.54||||957,084,841.87|
|assets||||||
|Land use rights - prepaid under lease|683,611,240.14||||168,093,724.86|
|(Note 3)||||||
|Land use rights - prepaid under|432,792,567.64||||559,030,696.38|
|investment (Note 3)||||||
|Land use rights - purchased|105,454,441.43||||104,261,328.35|
|Computer software|11,645,178.30||||10,390,683.13|
|Sea area use rights|60,652,879.85||||59,933,478.35|
|Coast line use rights|56,068,691.18||||55,374,930.80|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 16. Intangible assets - continued
Note 1: Purchased in the current period.
Note 2: Amortization for the current period is RMB 23,478,101.11 in amortization increased in the current period.
Note 3: The Group has obtained the land use right for berth and container yard located in Chiwan watershed area with original amount of RMB 1,400,288,984.00 from Nanshan Group. The tenure ranges between 20 - 50 years. The land with a total area of 1,049,946.00 square meters consists of an area of 2.2 square kilometers invested by Shenzhen Investment Holding Corporation, a stockholder of Nanshan Group, and a land arising from marine reclamation by Nanshan Group.
The land use rights for the plot of 270,692.00 sq. meters (original amount: RMB 122,623,476.00) was contributed by Nanshan Group as capital injection at corporate restructuring of the Company. The rest land use rights were obtained from Nanshan Group by long-term leasing.
Since Nanshan Group has not yet obtained official certificates of land use rights for the above lands so far, the Group has no certificates of title for relevant land and buildings either.
On 20 March 2001, 18 June 2003 and 29 September 2004, Nanshan Group made commitments on all the land use rights obtained by the Group from it as of the commitment date respectively: Nanshan Group has no right to withdraw the commitment and will unconditionally consent that, if the Group suffers loss, bears expense and liability, is claimed for compensation or runs into lawsuit, for any actually or potentially illegal and non-executable issues arising from land use right agreements and their relevant documents which signed or will be signed by the Group, Nanshan Group guarantees that the acquiring party and its inheritor of those land use right will be fully exempted from above issues. Hence, management of the Company believe there is no significant impairment risk in respect of the absence of land use right certificate and no significant contingent liability. The management notes that Nanshan Group is positively approaching relevant government authorities to solve the above historical land problem, however, it cannot predict the exact time to obtain legal certificates of title for above land and relevant building property ownership certificates.
As of 30 June 2018, long-term lease agreements for land use rights of 162,103.00 square meters with total original carrying amount of RMB 111,997,264.16 mentioned above have expired.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 17. Goodwill
Unit: RMB
||||||
|-|-|-|-|-|
|Investee|Opening balance|Increase|Decrease|Closing balance|
|CCT|10,858,898.17|-|-|10,858,898.17|

 Note: The goodwill arose from the acquisition of the minority interests in CCT in prior years, being the difference of the additional cost of investment and the Group's share of the fair value of the identifiable net assets in CCT. Based on past years' operation performance and development forecast of the Company, the management holds the opinion that these is no need to allocate impairment to goodwill arising from the investment of CCT.
18. Long-term prepaid expenses
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Decrease due||||
||||||to changes in||||
||||||scope of|Closing||Residual useful|
|Item|Opening balance|Increase|Amortization|Other decrease|consolidation|balance|Original Cost|life|
|Construction expenditure of|97,895,095.31|-|1,770,610.40|-|44,320,670.32|51,803,814.59|71,991,655.56|25 years|
|Tonggu sea-route (Note )|||||||||
|Golf membership|382,905.78|-|13,631.69|369,274.09|-|-|1,374,700.00||
|Total|98,278,001.09|-|1,784,242.09|369,274.09|44,320,670.32|51,803,814.59|73,366,355.56||

 Note: In 2007, Shenzhen municipal government launched the construction work of the public sea route connecting Tonggu sea-route, Shekou port area, Chiwan port area, Mawan port area, Qianhaiwan port area and Dachanwan port area ("Connecting Sea Route"). In compliance with the government resolution,60% of dredging expenditure would be borne by the investee companies while the remaining40% borne by the government.35% of the expenditure borne by the investee companies was assumed by the port operators in Western Shenzhen port, and the allocation portion to each operator was determined on the basis of function, waterfront length, and berthing ship of each port operator. The Tonggu sea-route construction expenses allocated to the Group is amortized on a straight- line basis over 35 years of the expected useful lives of Connecting Sea Route starting from 2008 when the Tonggu sea-route is put into use.
19. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets that are presented at the net amount without offsetting
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Closing balance||||Opening balance||
|||Deductible temporarydifferences||||Deductible temporary||
||Item|||Deferred tax assets||differences|Deferred tax assets|
||Deferred income|24,331,553.72|6,082,888.43||24,331,553.72||6,082,888.43|
|Organization costs||17,866,660.19|3,849,377.27||17,866,660.19||3,849,377.27|
||Provision for impairment losses of|1,916,678.98|367,094.08||3,769,729.29||645,051.62|
||assetsDepreciation of fixed assets and|655,737.43|158,184.38||655,737.43||158,184.38|
||amortization of intangible assets|||||||
||Others|1,567,295.02|295,524.73||1,567,295.02||295,524.73|
||Total|46,337,925.34|10,753,068.89||48,190,975.65||11,031,026.43|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued19、Deferred tax assets and deferred tax liabilities - continued
(2) Deferred tax liabilities that are presented at the net amount without offsetting
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Closing balance||||Opening balance||
|||Taxable temporary||Deferred tax||Taxable temporarydifferences||
|Item||differences||liabilities|||Deferred tax liabilities|
|Distributable profits of|-||-||168,036,856.00||8,401,842.80|
|subsidiaries||||||||
|Change in fair value of available-|-||-||8,730,000.00||2,182,500.00|
|for- sale financial assets||||||||
|Change in fair value of other|131,434,640.00||32,858,660.00||-||-|
|equity investments||||||||
||131,434,640.00||32,858,660.00||176,766,856.00||10,584,342.80|
|Total||||||||

 (3) Deferred tax assets or liabilities that are presented at the net amount after offsetting Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Closing amount of||Closing amount of||Opening amount of|Opening amount of|
|||deferred tax assets and||deferred tax assets or||deferred tax assets and|deferred tax assets or|
|Item||liabilities that are offset||liabilities after offsetting||liabilities that are offset|liabilities after offsetting|
|Deferred tax assets|-||10,753,068.89||-||11,031,026.43|
|Deferred tax liabilities|-||32,858,660.00||-||10,584,342.80|

 (4) Details of unrecognized deferred tax assets
Unit: RMB
|||||
|-|-|-|-|
|Item|Closing balance||Opening balance|
|Deductible temporary differences|100,527,084.72|100,527,084.72||
|Deductible losses|97,692,947.25|97,692,947.25||
|Total|198,220,031.97|198,220,031.97||

 Note: Deferred tax assets are not recognized for the above-mentioned deductible temporary differences and deductible losses due to uncertainty whether sufficient taxable profits will be available in the future.
(5) Deductible losses for unrecognized deferred tax assets will be expired in the following years Unit: RMB
|||||||
|-|-|-|-|-|-|
|Year||Closing balance||Opening balance|Note|
|2017|-||-|||
|2018|26,336,715.12||26,336,715.12|||
|2019|49,621,628.48||49,621,628.48|||
|2020|3,145,611.79||3,145,611.79|||
|2021|18,588,991.86||18,588,991.86|||
|2022|-||-|||
|Total|97,692,947.25||97,692,947.25|||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 20. Other non-current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Equity investment in Zhoushan Archipelago New Area SinoTrans &|149,709,800.00|-|
|CSC RoRo Logistics Co., Ltd. (Note 1)|||
|Land Use Right (Note 2)|132,334,704.86|132,334,704.86|
|Prepayments for construction|3,517,159.42|-|
|Total|285,561,664.28|132,334,704.86|

 Note 1: According to the resolutions of the second extraodinary session of the ninth board of directors on 26 January 2018, it was agreed that the Company increased capital injection of RMB 149,709,800 to Zhoushan Archipelago New Area SinoTrans& CSC RoRo Logistics Co., Ltd. ("Zhoushan RoRo "). The Company held51% equity of the aforesaid company after the increase in capital contribution. As at 30 June 2018, the capital increase has been paid up, while procedures related to change in personnel including directors, supervisors and senior executives were still in the process. Therefore, the Company has not had control over Zhoushan RoRo in substance temporarily and included relevant payment for investment in the line item of "other non-current assets".
Note 2: In March and October 2006, November 2007 and September 2014, the Group entered into Cooperation Framework Agreement on Usage of Coastline and Land for2# -5# Berth at Machong Port in Dongguan and its supplementary agreements with Dongguan Humen Port Administration Commission. The Group purchased use rights of coastline and land with a total area of 800,000 square meters, including waters with depth of 700 meters from the front of terminal, and coastline from berth2# to berth5# with a total length of 1,200 meters at Dongguan Machong Port at a consideration of RMB 260,000,000. As the Group has not obtained the use right certificates for the above land, the relevant prepayments were therefore recognized as other non-current assets.
21. Short-term borrowings
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Credit loan|501,758,000.00|-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 22. Accounts payable
(1) Details of accounts payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Service|49,672,047.63|44,304,587.96|
|Material purchase|37,886,573.64|30,935,681.72|
|Rental|12,003,969.29|11,740,186.97|
|Construction|5,559,805.94|43,202,625.18|
|Equipment|138,863.12|1,654,783.40|
|Total|105,261,259.62|131,837,865.23|

 (2) There is no significant accounts payable aged more than one year at the end of the year. 23. Receipts in advance
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Service fee receipt in advance|16,147,389.17|56,571,454.49|

 24. Employee benefits payable
(1) Employee benefits payable
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Decrease due|||
||||||||to changes in|||
|||Opening||Increase for the|Decrease for thecurrent period||scope of||Closing|
|Item||balance||current period|||consolidation||balance|
|I. Short-term benefits|95,361,472.09||194,362,263.35||222,052,480.75|6,987,096.71||60,684,157.98||
|II. Post-employment benefits -|-||23,063,359.29||23,063,359.29|-||-||
|defined contribution plans||||||||||
|III. Termination benefits|-||1,590,240.70||1,590,240.70|-||-||
|Total|95,361,472.09||219,015,863.34||246,706,080.74|6,987,096.71||60,684,157.98||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 24. Employee benefits payable - continued
(2) Short-term benefits
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Decrease due|||
|||||||||to changes in|||
|||Opening||Increase for the||Decrease for the||scope of||Closing|
|Item||balance||current period||current period||consolidation||balance|
|I. Wages and salaries, bonuses,|81,201,057.95||168,477,769.50||195,899,675.14||4,780,267.00||48,998,885.31||
|allowances and subsidies|||||||||||
|II. Staff welfare|-||2,426,555.68||2,426,555.68||-||-||
|III. Social insurance charges|-||6,013,858.39||6,013,858.39||-||-||
|Including: Medical insurance|-||4,970,219.24||4,970,219.24||-||-||
|Work injury insurance|-||497,684.86||497,684.86||-||-||
|Maternity insurance|-||545,954.29||545,954.29||-||-||
|IV. Housing funds|-||12,052,031.80||12,052,031.80||-||-||
|V. Labor union and employee|14,160,414.14||3,735,493.27||4,003,805.03||2,206,829.71||11,685,272.67||
|education funds|||||||||||
|VI. Others|-||1,656,554.71||1,656,554.71||-||-||
|Total|95,361,472.09||194,362,263.35||222,052,480.75||6,987,096.71||60,684,157.98||

 Note: There are no amounts in arrears under the employee benefits payable.
(3) Post-employment benefits - defined contribution plans
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Increase for the||Decrease for the|||
|Item||Opening balance||current period||current period||Closing balance|
|I. Basic pension (Note 1)|-||16,285,947.42||16,285,947.42||-||
|II. Unemployment insurance (Note 1)|-||239,717.88||239,717.88||-||
|III. Enterprise annuity plan (Note 2)|-||6,537,693.99||6,537,693.99||-||
|Total|-||23,063,359.29||23,063,359.29||-||

 Note 1: The Group participates in the social security contributions and the unemployment insurance plan established by government institutions as required. According to such plans, the Group contributes14%(13% for staff without Shenzhen householder register) of monthly basic salary,0.8%(0.5% for staffs in Dongguan City) respectively to such plans based on the minimum salary benchmark.
During the year, the Group is obliged to contribute RMB 16,285,947.42 and RMB 239,717.88 respectively to the social security contributions and the unemployment insurance plan (Six months ended 30 June 2017: RMB 15,943,928.92 and RMB 252,013.04). As at 30 June 2018, the Group have no outstanding contributions to be paid to the social security contributions and the unemployment insurance plan.
Note 2: On 3 June 2008, the Group participated in a group defined enterprise annuity plan of
Nanshan Group approved by Shenzhen municipal government. This supplementary
pension contributions were paid into a managed account through Nanshan Group.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS– continued 25. Taxes payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Enterprise income tax|39,759,910.51|25,424,119.87|
|Withholding tax (Note)|39,680,061.48|65,293,498.27|
|VAT|2,685,582.97|1,069,482.94|
|Others|4,758,632.14|4,666,000.58|
|Total|86,884,187.10|96,453,101.66|

 Note: The amount represents the withholding tax provided by the Group at the rate of5% or10% when paying out dividends to foreign shareholders and Chiwan Wharf Holdings (Hong Kong) Limited located in Hong Kong.
26. Interest payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Mid-term bill interest|6,395,671.26|1,977,287.68|
|Short-term bonds interest|1,580,986.30|1,701,205.47|
|Short-term borrowings interest|1,022,087.81|-|
|Total|8,998,745.37|3,678,493.15|

 27. Dividends payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Ordinary share dividends|165,955,102.54|263,384,499.42|
|Including: Payable to Hongkong International Enterprise Co., Ltd.|128,552,676.45|128,552,676.45|
|("HK International")|||
|Yihai Kerry Investment Co., Ltd. ("Yihai Kerry")|37,402,426.09|37,402,426.09|
|Payable to Hidoney Developments Co., Ltd.|-|97,429,396.88|
|("Hidoney")|||

28. Other payables
(1) Other payables presented by the nature
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Amount payable for construction and quality warranty|32,854,743.14|86,447,160.37|
|Temporary receipts|11,159,903.56|21,982,817.14|
|Deposits received|8,105,797.64|6,979,760.22|
|Security expense payable|3,446,749.92|3,573,384.96|
|Others|16,936,639.00|19,029,375.43|
|Total|72,503,833.26|138,012,498.12|

(2) There is no significant other payables aging more than one year.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 29. Other current liabilities
(1) Short-term bonds payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Short-term bonds payable|200,000,000.00|100,000,000.00|

 (2) Changes of short-term bonds payable:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount issued||Discount or|||
||||Term of|||in the current|Interest accrued|premium|Repayment in||
|Name of bond|Face value|Date of issue|the bond|Amount of issue|Opening balance|period|at par|amortization|the current period|Closing balance|
||100,000,000.00|21/8/2017|270 days|100,000,000.00|100,000,000.00|-|1,805,095.90|-|100,000,000.00|-|
|17 Chiwan port SCP003|||||||||||
||200,000,000.00|24/4/2018|267 days|200,000,000.00|-|200,000,000.00|1,762,410.96|-|-|200,000,000.00|
|18 Chiwan port SCP001|||||||||||
||300,000,000.00|||300,000,000.00|100,000,000.00|200,000,000.00|3,567,506.86|-|100,000,000.00|200,000,000.00|
|Total|||||||||||

 Note: According to the Notice of Registration Acceptance (filed as Zhong Shi Xie Zhu[2017] No. SCP235) issued by China's Interbank Market Dealers Association, the Dealers Association agreed the Company's registration of short-term commercial paper amounting to RMB 1.3 billion. The registered amount is valid in two years since the date of the Notice of Registration Acceptance. The Company issued the second tranche of short-term commercial paper amounting to RMB 0.2 billion as at 24 April 2018.
30. Bonds payable
(1) Bonds payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Mid-term bills|299,229,041.07|298,931,506.83|

 (2) Changes of bonds payable
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount issued|Interest accrued at|Discount or|Repayment inthe current||
||Face||Term of|||in the current|par during the|premium|||
|Name of bond|value|Date of issue|the bond|Amount of issue|Opening balance|period|period|amortization|period|Closing balance|
|Chiwan Wharf|100.00|11/10/2016|3 years|300,000,000.00|298,931,506.83|-|4,418,383.58|297,534.24|-|299,229,041.07|
|MTN001(Note)|||||||||||

Note: According to the Notice of Registration Acceptance (filed as Zhong Shi Xie Zhu[2016] MTN No. 325) issued by the China's Interbank Market Dealers Association. The Company is entitled to issue mid-term bills no more than RMB 800,000,000 with an effective period of 2 years.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 31. Long-term payables
Unit: RMB
||||
|-|-|-|
|Name of entity|Closing balance|Opening balance|
|China Merchants International (China) Investment Limited|-|25,000,000.00|
|("CMCI")|||

Note: In accordance with the agreement on the management of key construction fund for agricultural development of China (Yue[2016] 062802(Jian Guan) No. 1) entered into among Shenzhen Branch of Agricultural Development Bank of China, CMCI and the Company's subsidiary, Shenzhen Mawan Terminals Co., Ltd., Agricultural Development of China Key Construction Fund Co., Ltd. as issuer of the loan, Shenzhen Branch of Agricultural Development Bank of China as manager of the loan, released loan to CMCI amounting to RMB 25,000,000.00. The interest rate of the loan is1.2% per annum, and the term of the loan is from 30 June 2016 to 29 June 2026. Such special borrowing is used for the smart port construction project based on the "Internet Plus". According to the management agreement, the Company's subsidiary, Shenzhen Mawan Terminals Co., Ltd. is the executor of the project, which accordingly bears interest expenses relevant to such borrowing. The Mawan Companies have not been included in the scope of the consolidated financial statements since June 2018.
32. Special payables
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|Reason|
|Refunds of HarborConstruction Fee|32,563,422.41|-|4,354,314.03|28,209,108.38|Note|

Note: The item is refunds of harbor construction fee from Shenzhen Traffic Bureau. According to Measures of Harbor Construction Fee Management released by Ministry of Finance, the funds should be managed in separate account and can be only used on fundamental facilities' construction of marine transportation.
33. Deferred income
Unit: RMB
Reason
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|Reason|
|Deferred income|156,048,997.49|-|2,997,497.21|153,051,500.28||
|Including: Berth priority right|28,830,623.80|-|2,028,256.46|26,802,367.34|Note 1|
|Government grants related to|127,218,373.69|-|969,240.75|126,249,132.94|Note 2|
|assets||||||
|Total|156,048,997.49|-|2,997,497.21|153,051,500.28||

Note 1: This item represents berth priority right with total amounts to USD 14,000,000 that agreed in the contract signed in 2003. The Group should satisfy the berthing requirement
of contracted customers in priority during the contract period. According to the contract,
the berth priority right should be amortized over twenty years on the straight-line basis.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS– continued 33. Deferred income - continued
Note2：The item represents the government grants received by the Group which is based on the Announcement Released by National Development and Reform Commission about 2010 Investment Plans within Budget of Grains and Modern Logistics Program(NDRC[2010] No.1263), the Announcement Released by Guangdong Provincial Department of Finance about 2012 Provincial Special Funds to Guide the Development of Modern Service Project (Yue Jing Xin[2012] No. 883) and Transportation of energy saving special funds Interim Measures (Cai Jian[2011] No. 374), Nanshan District, Shenzhen, energy saving projects funded sub contract, Announcement Released by Reform and Development Commission of Guangdong Province and the Grain Bureau of Guangdong Province about 2015 Investment Plans within Budget of Grains and Modern Logistics Program(GDRC[2015] No.521), Measures Released by Dongguan Government about Grants Management to Special Fund Program for the Development of National and Provincial Industries(DGM[2013]No.162), Interim Measures Released by Shenzhen Government about the Management to Special Fund used in Recycling Economy and Energy Savings, and the Reply of Ministry of Transport to Implementation Program of Building 19 Regional Projects such as the Construction of a Green Recycling Low- carbon Transportation City by Beijing Government (Transportation Law
Letter[2014]No.499),The Ministry of Finance, Ministry of Technology and Science, Ministry of Industry and Information, National Development and Reform Commission's Notice on Financial Support to Application of New Energy Vehicles from 2016 to 2020 (Cai Jian[2015]No.134), and Announcement Released by Reform and Development Commission of Guangdong Province and the Grain Bureau of Guangdong Province about 2017 Investment& Division Plans within Budget of Grains and Modern Warehousing& Logistics Program(GDRC[2017] No.420).The government grants shall be amortized on the straight-line basis over the useful life of the related assets. Programs related with government grants:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||The amount|||Related to|
|||New subsidy of|included in other|Other||assets/Related to|
|Liability Program|Opening balance|the year|income of the year|changes|Closing balance|income|
|Special funds for modern|123,026,087.58|-|403,478.22|-|122,622,609.36|Related to assets|
|logistics project|||||||
|Reward for energy saving|845,787.43|-|26,022.60|-|819,764.83|Related to assets|
|Special funds for energy-saving|1,410,000.00|-|180,000.00|-|1,230,000.00|Related to assets|
|and emission reduction of|||||||
|transportation|||||||
|Special funds for development of|1,305,466.60|-|250,439.61|-|1,055,026.99|Related to assets|
|modern service guide|||||||
|Subsidy for electric buses|583,333.28|-|100,000.02|-|483,333.26|Related to assets|
|Green carbon harbor thematic|47,698.80|-|9,300.30|-|38,398.50|Related to assets|
|projects subsidy granted by|||||||
|central government|||||||
|Total|127,218,373.69|-|969,240.75|-|126,249,132.94||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 34. Share capital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changes for the period||||||
|||New issue||Capitalization of||||
||Opening balance|of share|Bonus issue|surplus reserve|Others|Subtotal|Closing balance|
|Six months ended 30 June 2018||||||||
|I. Restricted tradable shares||||||||
|1 State-owned shares|-|-|-|-|-|-|-|
||-|-|-|-|-|-|-|
|2. State-owned legal person shares||||||||
|3. Other domestic shares|160,106.00|-|-|-|-|-|160,106.00|
|4. Other foreign shares|-|-|-|-|-|-|-|
|Total restricted tradable shares|160,106.00|-|-|-|-|-|160,106.00|
|II. Non-restricted tradable shares||||||||
|1. Ordinary shares denominated in|464,859,300.00|-|-|-|-|-|464,859,300.00|
|RMB||||||||
|2. Foreign capital shares listed|179,744,324.00|-|-|-|-|-|179,744,324.00|
|domestically||||||||
|3. Foreign capital shares listed|-|-|-|-|-|-|-|
|overseas||||||||
|4. Others|-|-|-|-|-|-|-|
|Total non-restricted tradable shares|644,603,624.00|-|-|-|-|-|644,603,624.00|
|III. Total shares|644,763,730.00|-|-|-|-|-|644,763,730.00|
|2017:||||||||
|I. Restricted tradable shares||||||||
|1 State-owned shares|-|-|-|-|-|-|-|
||-|-|-|-|-|-|-|
|2. State-owned legal person shares||||||||
|3. Other domestic shares|304,538.00|-|-|-|(144,432.00)|(144,432.00)|160,106.00|
|4. Other foreign shares|-|-|-|-|-|-|-|
|Total restricted tradable shares|304,538.00|-|-|-|(144,432.00)|(144,432.00)|160,106.00|
|II. Non-restricted tradable shares||||||||
|1. Ordinary shares denominated in|464,866,612.00|-|-|-|(7,312.00)|(7,312.00)|464,859,300.00|
|RMB||||||||
|2. Foreign capital shares listed|179,592,580.00|-|-|-|151,744.00|151,744.00|179,744,324.00|
|domestically||||||||
|3. Foreign capital shares listed|-|-|-|-|-|-|-|
|overseas||||||||
|4. Others|-|-|-|-|-|-|-|
|Total non-restricted tradable shares|644,459,192.00|-|-|-|144,432.00|144,432.00|644,603,624.00|
|III. Total shares|644,763,730.00|-|-|-|-|-|644,763,730.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 35. Capital reserve
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|
|Six months ended 30 June 2018|||||
|Capital premium|163,560,083.00|-|-|163,560,083.00|
|Including: Capital contributed by investors|163,560,083.00|-|-|163,560,083.00|
|Exercised conversion option of convertible|-|-|-|-|
|corporate bonds|||||
|Debt converted into capital|-|-|-|-|
|Differences arising from business combination|-|-|-|-|
|involving enterprises under common control|||||
|Equity acquisition from minority shareholders of|-|-|-|-|
|subsidiaries|||||
|Capitalization of capital reserve|-|-|-|-|
|Other capital reserve|3,920,298.25|-|-|3,920,298.25|
|Including: Equity split from convertible corporate bonds|-|-|-|-|
|Fair value of equity-settled share-based equity|-|-|-|-|
|instrument|||||
|Surplus of compensation granted by government|-|-|-|-|
|for relocation in the public interests|||||
|Transfer from capital reserve under the previous|(2,781,133.00)|-|-|(2,781,133.00)|
|accounting system|||||
|Others|6,701,431.25|-|-|6,701,431.25|
|Total|167,480,381.25|-|-|167,480,381.25|
|2017:|||||
|Capital premium|163,560,083.00|-|-|163,560,083.00|
|Including: Capital contributed by investors|163,560,083.00|-|-|163,560,083.00|
|Exercised conversion option of convertible|-|-|-|-|
|corporate bonds|||||
|Debt converted into capital|-|-|-|-|
|Differences arising from business combination|-|-|-|-|
|involving enterprises under common control|||||
|Equity acquisition from minority shareholders of|-|-|-|-|
|subsidiaries|||||
|Capitalization of capital reserve|-|-|-|-|
|Other capital reserve|3,920,298.25|-|-|3,920,298.25|
|Including: Equity split from convertible corporate bonds|-|-|-|-|
|Fair value of equity-settled share-based equity|-|-|-|-|
|instrument|||||
|Surplus of compensation granted by government|-|-|-|-|
|for relocation in the public interests|||||
|Transfer from capital reserve under the previous|(2,781,133.00)|-|-|(2,781,133.00)|
|accounting system|||||
|Others|6,701,431.25|-|-|6,701,431.25|
|Total|167,480,381.25|-|-|167,480,381.25|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 36. Other comprehensive income
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount incurred in current period|||||||||
|||||||||||Post-tax||Post-tax|||
|||||Impact of New||Amount before||||amount||amount|||
|||||Financial||income tax||||attributable to||attributable|||
|||Opening||Instrument||incurred in||Less: Income||shareholders of||to minority|||
|tem||balance||Standards||current period||tax expenses||the Company||holders||Closing balance|
|Six months ended 30 June 2018：|||||||||||||||
|I. Other comprehensive income|-||99,160,980.00||(780,000.00)||(195,000.00)||(585,000.00)||-||98,575,980.00||
|that will not be reclassified|||||||||||||||
|subsequently to profit or loss|||||||||||||||
|Including: Change as a result of|-||-||-||-||-||-||-||
|remeasurement of the net defined|||||||||||||||
|benefit plan liability or asset|||||||||||||||
|Share of other comprehensive|-||99,160,980.00||(780,000.00)||(195,000.00)||(585,000.00)||-||98,575,980.00||
|income of the investee under the|||||||||||||||
|equity method that will not be|||||||||||||||
|reclassified to profit or loss|||||||||||||||
|II. Other comprehensive income|19,800,344.49||(6,547,500.00)||-||-||-||-||13,252,844.49||
|that will be reclassified|||||||||||||||
|subsequently to profit or loss|||||||||||||||
|Including: Share of other|100,000.00||-||-||-||-||-||100,000.00||
|comprehensive income of the|||||||||||||||
|investee under the equity method|||||||||||||||
|that will be reclassified to profit or|||||||||||||||
|loss|||||||||||||||
|Gains or losses on change in fair|6,547,500.00||(6,547,500.00)||-||-||-||-||-||
|value of available-for- sale|||||||||||||||
|financial assets|||||||||||||||
|Gains or losses on reclassification|-||-||-||-||-||-||-||
|of held-to-maturity investments to|||||||||||||||
|available-for-sale|||||||||||||||
|Effective portion of gains or losses|-||-||-||-||-||-||-||
|on cash flow hedges|||||||||||||||
|Translation differences of|13,152,844.49||-||-||-||-||-||13,152,844.49||
|financial statements denominated|||||||||||||||
|in foreign currencies|||||||||||||||
|Total|19,800,344.49||92,613,480.00||(780,000.00)||(195,000.00)||(585,000.00)||-||111,828,824.49||
|2017:|||||||||||||||
|I. Other comprehensive income|-||-||-||-||-||-||-||
|that will not be reclassified|||||||||||||||
|subsequently to profit or loss|||||||||||||||
|Including: Change as a result of|-||-||-||-||-||-||-||
|remeasurement of the net defined|||||||||||||||
|benefit plan liability or asset|||||||||||||||
|Share of other comprehensive|-||-||-||-||-||-||-||
|income of the investee under the|||||||||||||||
|equity method that will not be|||||||||||||||
|reclassified to profit or loss|||||||||||||||
|II. Other comprehensive income|18,825,344.49||-||1,300,000.00||325,000.00||975,000.00||-||19,800,344.49||
|that will be reclassified|||||||||||||||
|subsequently to profit or loss|||||||||||||||
|Including: Share of other|100,000.00||-||-||-||-||-||100,000.00||
|comprehensive income of the|||||||||||||||
|investee under the equity method|||||||||||||||
|that will be reclassified to profit or|||||||||||||||
|loss|||||||||||||||
|Gains or losses on change in fair|5,572,500.00||-||1,300,000.00||325,000.00||975,000.00||-||6,547,500.00||
|value of available-for- sale|||||||||||||||
|financial assets|||||||||||||||
|Gains or losses on reclassification|-||-||-||-||-||-||-||
|of held-to-maturity investments to|||||||||||||||
|available-for-sale|||||||||||||||
|Effective portion of gains or losses|-||-||-||-||-||-||-||
|on cash flow hedges|||||||||||||||
|Translation differences of|13,152,844.49||-||-||-||-||-||13,152,844.49||
|financial statements denominated|||||||||||||||
|in foreign currencies|||||||||||||||
|Total|18,825,344.49||-||1,300,000.00||325,000.00||975,000.00||-||19,800,344.49||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 37. Special reserve
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Decrease due to change||
|||||in scope of||
|Item|Opening balance|Increase|Decrease|consolidation|Closing balance|
|Six months ended 30 June 2018 :||||||
|Production safety fee|4,767,373.45|10,442,630.90|6,319,776.52|575,472.95|8,314,754.88|
|2017:||||||
|Production safety fee|4,145,765.65|17,456,696.76|16,835,088.96|-|4,767,373.45|

 38. Surplus reserve
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Six months ended 30 June 2018:|||||
|Statutory surplus reserve|520,074,434.56|-|-|520,074,434.56|
|2017:|||||
|Statutory surplus reserve|520,074,434.56|-|-|520,074,434.56|

 Note: In accordance with the Company Law of the PRC and the Company's Articles of Association, the Company should appropriate10% of net profit for the year to the statutory surplus reserve, and the Company can cease appropriation when the statutory surplus reserve accumulates to more than50% of the registered capital. The statutory surplus reserve can be used to make up for the loss or increase the paid-in capital after approval.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 39. Unappropriated profit
Unit: RMB
||||
|-|-|-|
|||Proportion of|
|||appropriation or|
|Item|Amount|allocation|
|Six months ended 30 June 2018:|||
|Before adjustment: Unappropriated profit at the end of prior year|3,566,083,142.17||
|Adjustment: Total unappropriated profit at the beginning of year|-||
|After adjustment: Unappropriated profit at the beginning of year|3,566,083,142.17||
|Add: Net profit attributable to shareholders of the Company for the year|316,060,290.67||
|Less: Appropriation to statutory surplus reserve|-||
|Appropriation to disclretionary surplus reserve|-|Note 1|
|Transfer to general reserve|-||
|Ordinary shares' dividends payable|850,443,359.87|Note 2|
|Ordinary shares' dividends converted into share capital|-||
|Unappropriated profit at the end of the year|3,031,700,072.97||
|2017:|||
|Before adjustment: Unappropriated profit at the end of prior year|3,381,390,887.86||
|Adjustment: Total unappropriated profit at the beginning of year|-||
|After adjustment: Unappropriated profit at the beginning of year|3,381,390,887.86||
|Add: Net profit attributable to shareholders of the Company for the year|504,495,064.39||
|Less: Appropriation to statutory surplus reserve|-||
|Appropriation to discretionary surplus reserve|-||
|Transfer to general reserve|-||
|Ordinary shares' dividends payable|319,802,810.08||
|Ordinary shares' dividends converted into share capital|-||
|Unappropriated profit at the end of the year|3,566,083,142.17||

Note 1: Appropriation to statutory surplus reserve
According to the Articles of Association, the Company is required to transfer10% of its net profit to the statutory surplus reserve. The Company can cease appropriation when the statutory surplus reserve accumulated to more than50% of the register capital. Note 2: Cash dividends approved by shareholders' meeting during the year
Pursuant to the resolution of shareholders' meeting on 28 March 2018, on the basis of 644,763,730 issued shares for the year ended 31 December 2017, dividends of RMB 13.19(tax included) for every 10 shares were distributed to all shareholders, which amounted to RMB 850,443,359.87.
Note 3: Appropriation to surplus reserve made by subsidiaries
As at 30 June 2018, the balance of the Group's unappropriated profit included
appropriation to surplus reserve made by subsidiaries amounting to RMB 613,003,934.55
(31 December 2017: RMB 613,003,934.55).
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 40. Operating income and operating costs
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||||Accumulated amount for the prior||
|||Accumulated amount for the period||||period (restated)||
|Item||Income||Cost||Income|Cost|
|Principal operating|1,240,293,171.35||668,121,155.35||1,159,050,546.56|||
|Other operating|5,842,344.99||1,018,712.63||17,600,471.43|||
|Total|1,246,135,516.34||669,139,867.98||1,176,651,017.99|||

 41. Taxes and levies
Unit: RMB
||||
|-|-|-|
||Accumulated amount for|Accumulated amount for|
|Item|the period|the prior period (restated)|
|Property tax|3,063,002.93|2,232,193.29|
|City construction and maintenance tax|720,820.04|838,052.23|
|Education surcharges|604,130.05|698,228.58|
|Others|1,793,039.31|2,608,270.40|
|Total|6,180,992.33|6,376,744.50|

 42. Administrative expenses
Unit: RMB
||||
|-|-|-|
||Accumulated amount for|Accumulated amount for|
|Item|||
||the period|the prior period (restated)|
|Employee benefits|66,626,296.50|57,377,117.91|
|Depreciation expenses|1,969,563.36|1,627,889.49|
|Amortization of intangible assets|814,382.89|681,528.65|
|Others|18,226,266.00|18,221,500.23|
|Total|87,636,508.75|77,908,036.28|

 43. Financial expenses
Unit: RMB
||||
|-|-|-|
||Accumulated amount for|Accumulated amount for|
|Item|the period|the prior period (restated)|
|Interest expense|10,849,222.96|12,916,993.55|
|Less: Capitalized interest expenses|-|1,107,689.13|
|Less: Interest income|5,549,905.15|4,890,767.58|
|Exchange differences|11,473,011.85|6,013,506.13|
|Others|1,096,773.22|342,732.16|
|Total|17,869,102.88|13,274,775.13|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 44. Impairment losses of assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Accumulated amount|
||||Accumulated amount||for the prior period|
||Item||for the period||(restated)|
|I|. Bad debt losses|360,407.86||(2,075,271.78)||
|I|I. Write-down of inventories|-||-||
|I|II. Impairment on available-for-sale financial assets|-||-||
|I|V. Impairment on held-to-maturity investments|-||-||
|V|. Impairment on long-term equity investments|-||-||
|V|I. Impairment on investment properties|-||-||
|V|II. Impairment on fixed assets|-||-||
|V|III. Impairment on construction materials|-||-||
|I|X. Impairment on construction in progress|-||-||
|X|. Impairment on bearer biological assets|-||-||
|X|I. Impairment on oil and gas assets|-||-||
|X|II. Impairment on intangible assets|-||-||
|X|III. Impairment on goodwill|-||-||
|X|IV. Others|-||-||
|T|otal|360,407.86||(2,075,271.78)||

 45. Investment Income
(1) Details of investment income
Unit: RMB
||||
|-|-|-|
||Accumulated amount for|Accumulated amount for|
|Item|the period|the prior period (restated)|
|Long-term equity investments income under equity method|45,680,862.14|36,875,845.60|
|Dividend received from investments in other equity instruments|7,788,975.00|-|
|Investment income on available-for-sale financial assets|-|9,417,000.00|
|Total|53,469,837.14|46,292,845.60|

 (2) Details of long-term equity investments income under equity method
Unit: RMB
|||||
|-|-|-|-|
|||Accumulated||
||Accumulated|amounts for the||
||amount for the|prior period||
||||Reasons for increases or decreases in|
|Investees|period|(restated)|the current compared to the prior period|
|COHA (Laizhou)|26,216,000.00|29,155,806.47|Changes in net profit of investee|
|CMBL|9,848,000.00|5,476,000.01|Changes in net profit of investee|
||8,299,439.10|-|Changes in accounting method forinvestee|
|MPIL||||
|China Merchants Holdings (International) Information|1,563,300.00|2,267,364.00|Changes in net profit of investee|
|Technology Co., Ltd||||
|Hunan Xianing Inland Port Co., Ltd.|(245,876.96)|(23,324.88)|Changes in net profit of investee|
|Total|45,680,862.14|36,875,845.60||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 46. Gains or losses on disposal of assets
Unit: RMB
|||||
|-|-|-|-|
|||Accumulatedamounts for the priorperiod (restated)|Amount recognized asnon-recurring gain andloss in the current period|
||Accumulated amountfor the period|||
|Item||||
||19,702.38|293,053.57|19,702.38|
|Gains (losses) on disposal of non-current assets||||
||19,702.38|293,053.57|19,702.38|
|Including: Gains (losses) on disposal of fixed assets||||

 47. Other income
Unit: RMB
|||||
|-|-|-|-|
||Amount incurredduring the period|Amount incurredduring the priorperiod|Related to assets /|
||||related to income|
|Item||||
|Special funds for modern logistics project|403,478.22|-||
|Reward for energy saving|250,439.61|||
|Special funds for energy-saving and emissionreduction of transportation|180,000.00|-||
|Subsidy for electric buses|100,000.02|-||
|Special funds for development of modernservice guide|26,022.60|-||
|Green carbon harbor thematic projects subsidygranted by central government|9,300.30|-||
|Total|969,240.75|-||

48. Non-operating income
(1) Non-operating income
Unit: RMB
|||||
|-|-|-|-|
||||Amount recognized as|
|||Accumulated amount|non-recurring gain and|
||Accumulated amount|for the prior period|loss in the current|
|Item|for the period|(restated)|period|
|Government grants|-|498,801.18|-|
|Others|2,902,652.25|1,827,764.29|2,902,652.25|
|Total|2,902,652.25|2,326,565.47|2,902,652.25|

 (2) Government grants
Unit: RMB
|||||
|-|-|-|-|
|||Accumulated amount||
||Accumulated amount|for the prior period|Related to assets/|
|Item|for the period|(restated)|Related to income|
|Special funds for energy-saving and|-|180,000.00|Related to assets|
|emission reduction of transportation||||
|Reward for energy saving||100,000.02|Related to assets|
|Subsidy for electric buses|-|100,000.02|Related to assets|
|Special funds for modern logistics project|-|83,478.24|Related to assets|
|Special funds for development of modern|-|26,022.60|Related to assets|
|service guide||||
|Green carbon harbor thematic projects|-|9,300.30|Related to assets|
|subsidy granted by central government||||
|Total|-|498,801.18||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 49. Non-operating expenses
Unit: RMB
|||||
|-|-|-|-|
||||Amount recognized as|
|||Accumulated amount|non-recurring gain and|
||Accumulated amount|for the prior period|loss in the current|
|Item|for the period|(restated)|period|
|Gains on retirement of non-current assets|-|741,487.52|-|
|Including: Gains on retirement of fixed|-|741,487.52|-|
|assets||||
|Amercement outlay|3,278,008.57|-|3,278,008.57|
|Others|171,918.12|62,153.21|171,918.12|
|Total|3,449,926.69|803,640.73|3,449,926.69|

 50. Income tax expenses
Unit: RMB
||||
|-|-|-|
||Accumulated amount|Accumulated amount|
||for the period|for the prior period|
|Item||(restated)|
|Current tax expenses|72,972,772.66|72,810,714.44|
|Deferred income tax|2,511,899.07|49,425.00|
|Total|75,484,671.73|72,860,139.44|

 Reconciliation of income tax expenses to the accounting profit is as follows:
Unit: RMB
||||
|-|-|-|
||Accumulated amount|Accumulated amount|
||for the period|for the prior period|
|Item||(restated)|
|Accounting profit|518,860,142.37|446,530,960.04|
|Income tax expenses calculated at 25% (the prior year: 25%)|129,715,035.59|111,632,740.01|
|Effect of expenses that are not deductible for tax purposes|661,593.56|13,943.60|
|Effect of tax-free income|(13,367,459.29)|(11,573,211.40)|
|Effect of current period deductible losses and deductible temporary|(17,635.23)|(2,173,730.24)|
|differences unrecognized as deferred tax assets|||
|Effect of previous deductible losses and deductible temporary|-|(5,744,052.41)|
|differences unrecognized as deferred tax assets|||
|Effect of different tax rates of subsidiaries operating in other|(83,760.27)|(253,656.69)|
|jurisdictions|||
|Effect of tax preference policy|(29,438,865.97)|(20,998,208.60)|
|Withholding tax|(11,984,236.66)|1,956,315.17|
|Income tax expenses|75,484,671.73|72,860,139.44|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 51. Other comprehensive income
Please refer to Note (V) 36.
52. Borrowing cost
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Accumulated amount for the||||Accumulated amount for the|||
||||period||||prior period (restated)|||
||||Amount of||||Amount of|||
||||borrowing costs||||borrowing costs|||
||||capitalized during||Capitalization||capitalized during||Capitalization|
||Item||the year||rate||the year||rate|
|C|onstruction in progress|-||-||1,107,689.13||4.35%||
|B|orrowing costs capitalized during the year|-||||1,107,689.13||||
|By|orrowing costs recognized in profit or loss during the|10,849,222.96||||11,809,304.42||||
||ear|||||||||
|T|otal of borrowing costs during the year|10,849,222.96||||12,916,993.55||||

53. Notes to items in the cash flow statement
(1) Other cash receipts relating to operating activities
Unit: RMB
||||
|-|-|-|
|||Accumulated amount|
||Accumulated amount|for the prior period|
|Item|for the period|(restated)|
|Interest income|6,595,671.06|4,190,266.11|
|Insurance indemnity|842,178.78|145,964.36|
|Refunds of harbor construction fee|689,371.60|361,547.93|
|Government grants|-|20,000.00|
|Refunds of river channel occupation fee|-|14,469,500.00|
|Others|27,228,040.58|24,321,814.03|
|Total|35,355,262.02|43,509,092.43|

 (2) Other cash payments relating to operating activities
Unit: RMB
||||
|-|-|-|
|||Accumulated amount|
||Accumulated amount|for the prior period|
|Item|for the period|(restated)|
|Port expenses|14,290,841.64|4,219,993.64|
|Property insurance|3,851,201.02|1,683,669.16|
|Port administration fee|2,862,983.25|5,336,195.70|
|Office expenses & utilities|2,856,786.15|2,263,884.38|
|Consulting & auditing|1,861,565.43|1,536,333.24|
|Entertainment|1,213,925.43|1,175,602.09|
|Vehicles|945,192.43|1,295,699.65|
|Travel & accommodation|454,783.51|604,205.21|
|Others|32,088,105.70|23,072,350.75|
|Total|60,425,384.56|41,187,933.82|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 53. Notes to items in the cash flow statement - continued
(3) Other cash receipts relating to investing activities
Unit: RMB
||||
|-|-|-|
|||Accumulated amount|
||Accumulated amount|for the prior period|
|Item|for the period|(restated)|
|Repayment from Hunan Xianing (Hunan Changsha Xianing Inland|500,000.00|-|
|Port Co., Ltd.)|||
|Restream from CMCI cash pooling|-|128,500,000.00|
|Total|500,000.00|128,500,000.00|

 (4) Net cash payments for the acquisition of subsidiaries and other business units
Unit: RMB
||||
|-|-|-|
|Item|Accumulated amount|Accumulated amount|
|Capital increase in Zhoushan RoRo|for the period149,709,800.00|for the prior period-|

 (5) Other cash payments relating to investing activities
Unit: RMB
||||
|-|-|-|
|||Accumulated amount|
||Accumulated amount|for the prior period|
|Item|for the period|(restated)|
|Cash outflow due to changes in scope of consolidation|203,758,566.92|-|
|Payments for CMCI cash pooling|-|180,000,000.00|
|Total|203,758,566.92|180,000,000.00|

 (5) Other cash payments relating to financing activities
Unit: RMB
||||
|-|-|-|
|||Accumulated amounts|
||Accumulated amount|for the prior period|
|Item|for the period|(restated)|
|Debt issue costs|663,373.11|15,792.33|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 54. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
||||
|-|-|-|
|Supplementary information|Closing balance|Opening balance|
|1. Reconciliation of net profit to cash flows from operating activities:|||
|Net profit|443,375,470.64|373,670,820.60|
|Add: Provision for impairment losses of assets|360,407.86|(2,075,271.78)|
|Depreciation of fixed assets|136,537,426.45|135,136,560.67|
|Depreciation of investment property|412,916.04|412,916.04|
|Amortization of intangible assets|23,478,101.11|26,609,829.02|
|Amortization of long-term prepaid expenses|1,784,242.09|1,989,892.44|
|Losses (Gains) on disposal of fixed assets , intangible assets and|(19,702.38)|(293,053.57)|
|other long-term assets|||
|Losses on retirement of fixed assets , intangible assets and other|-|741,487.52|
|long-term assets|||
|Financial expenses|22,322,234.81|17,822,810.55|
|Losses (gains) arising from investments|(53,469,837.14)|(46,292,845.60)|
|Decrease (Increase) in deferred tax assets|277,957.54|49,425.00|
|Increase in deferred tax liabilities|(8,596,842.80)|1,800,894.96|
|Decrease in inventories|5,371,513.27|(4,296,500.65)|
|Decrease(Increase) in operating receivables|(42,415,860.32)|(78,776,214.82)|
|Increase in operating payables|(180,243,153.49)|148,054,781.65|
|Net Cash Flows from Operating Activities|349,174,873.68|574,555,532.03|
|2．Significant investing and financing activities that do not involve|||
|cash receipts and payments:|||
|Conversion of debt into capital|-|-|
|Convertible bonds due within one year|-|-|
|Fixed assets acquired under finance leases|-|-|
|3．Net changes in cash and cash equivalents:|||
|Closing balance of cash|468,287,526.00|650,935,428.95|
|Less: Opening balance of cash|818,193,679.32|542,079,799.39|
|Add: Closing balance of cash equivalents|-|-|
|Less: Opening balance of cash equivalents|-|-|
|Net increase (Decrease) in cash and cash equivalents|(349,906,153.32)|108,855,629.56|

 (2) Composition of cash and cash equivalents
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|468,287,562.00|818,193,679.32|
|Including: Cash on hand|7,910.77|13,507.43|
|Bank deposits|467,848,262.79|817,749,580.62|
|Other monetary funds|431,352.44|430,591.27|
|II. Cash equivalents|-|-|
|III. Closing balance of cash and cash equivalents|468,287,526.00|818,193,679.32|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 55. Asset with restricted ownership or use right
The Group has no assets with restricted ownership or use right.
56. Foreign currency monetary items
||||||||
|-|-|-|-|-|-|-|
|||Closing balance offoreign currency||||Closing amount in|
|Item||||Exchange rate||RMB|
|Cash and bank balances|||||87,956,808.14||
|Including: HKD|77,305,301.33||0.8431||65,176,099.55||
|USD|3,442,962.94||6.6166||22,780,708.59||
|Accounts receivable|||||29,815,576.40||
|Including: HKD|29,289,494.83||0.8431||24,693,973.09||
|USD|774,053.64||6.6166||5,121,603.31||
|Other receivables|||||140,037.88||
|Including: HKD|165,988.91||0.8431||139,945.25||
|USD|14.00||6.6166||92.63||
|Short-term borrowings|||||151,758,000.00||
|Including: HKD|180,000,000.00||0.8431||151,758,000.00||
|Accounts payable|||||3,389,950.83||
|Including: HKD|4,020,817.02||0.8431||3,389,950.83||
|Other payables|||||(219,874.59)||
|Including: HKD|38,006.71||0.8431||32,043.46||
|USD|(38,073.64)||6.6166||(251,918.05)||

 (VI) CHANGES IN SCOPE OF CONSOLIDATION
Changes in scope of consolidation due to other reasons:
Unit: RMB
||||||
|-|-|-|-|-|
|||||Basis for|
|||Basis for composition of||determination of|
||Equity proportion of|business combination|No longer included in|exclusion fom scope|
|Name of the company|investor|under common control|scope of consolidation|of consolidation|
|Media Port Investments Limited|50%|Note 1|8 June 2018|Note 2|

 Note1: The Company and CMPH, Fatten Investments Limited ("FIL") and Media Port Investments Limited ("MPIL") enter into Supplementary Agreement of Shareholder Agreement of Media Port Investments Limited on 23 August 2018. Pursuan to the above agreement arrangement, the Company completed appointment of directors to MPIL at the end of September 2017, and achieved control of MPIL and its subsidiary FIL, Shenzhen Mawan Wharf Co., Ltd., Shenzhen Mawan Port Co, Ltd. and Shenzhen Mawan Terminals Co., Ltd. (hereinafter collectively as "Mawan Companies") in the form and in the substance.
In accordance with relevant criteria in the Accounting Standard for Business Enterprises
No.33—Consolidated Financial Statements, the Company has included MPIL and its
subsidiary FIL, and Mawan Companies in the scope of the consolidated financial
statements since September 2017. Based on requirements of business combination
involving enterprises under common control, the amount for the same period of last year in
the comparative financial statements have been adjusted in the current period.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VI) CHANGES IN SCOPE OF CONSOLIDATION - continued
Changes in scope of consolidation due to other reasons: - continued
Note2：The Company and CMPH, FIL and MPIL enter into Supplementary Agreement II of Shareholder Agreement of Media Port Investments Limited on 5 February 2018. The Agreement was concluded and went into effect once signed by each party. The Company will not be capable of exerting control over MPIL and its subsidiary FIL and Mawan Companies since Shenzhen Malai Warehouse Co., Ltd. ("Malai Warehouse "), KEEN Field Enterprises Limited and Nanshan Group transferred their equity in the Company, which accounted for66.10% in total, to CM Gangtong Development (Shenzhen) Co., Ltd. ("CM Gangtong"), subsidiary of CMG, and Broadford International Inc, its persons acting in concert. Upon date of losing control over the companies, the Company ceased to include such companies in the scope of the Group's consolidated financial statements.
The Company received Registration Confirmation for Transfer of Securities issued by CSDC Shenzhen Branch provided by CMPH and Broadford International Inc. on 11 June 2018. The registration procedure of the transfer has been completed as at 8 June 2018. Since that date, the Company no longer includes MPIL and its subsidiary FIL and Mawan Companise in the scope of the consolidated financial statements but considers them as investment in associates, which is recognised in long-term equity investment and accounted for using equity method.
Note3：From January to May 2018, income of RMB 244,882,839.36, and net profit of RMB 90,526,376.71 of MPIL were included in the scope of consolidation; in June 2018, investment income of RMB 8,299,439.10 was recognised using equity method.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VII) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Registered Capital (in||Balance of other items||||||
||Principal|||ten thousand Yuan|Actual capital|substantively constituting|Proportion of ownership Interest (%)||Proportion|||
||place of|Place of||unless otherwise|contribution at the|net investments in the|Direct ownership|Indirect ownership|of voting|Consolidated||
|Full name of the subsidiary|business|incorporation|Nature of business|stated)|end of the period|subsidiary|interest|interest|power (%)|or not|Approach of acquiring|
|Shenzhen Chiwan International Freight|Shenzhen,PRC|Shenzhen, PRC|Logistics supportservices|550.00|5,500,000.00|-|100.00|-|100.00|Y|Established through investment|
|Agency Co., Ltd||||||||||||
|Chiwan Wharf Holdings (Hong Kong)|Hong KongSAR, PRC|Hong Kong SAR,PRC|Investment|HKD 1,000,000.00|1,070,000.00|11,004,285.00|100.00|-|100.00|Y|Established through investment|
|Limited||||||||||||
||Dongguan,PRC|Dongguan, PRC|Logistics supportservices|45,000.00|382,500,000.00|-|85.00|-|85.00|Y|Established through investment|
|Dongguan Chiwan Warf Co., Ltd. ("DGW")||||||||||||
||Dongguan,PRC|Dongguan, PRC|Logistics supportservices|40,000.00|400,000,000.00|-|100.00|-|100.00|Y|Established through investment|
|DGT||||||||||||
||Hong KongSAR, PRC|Hong Kong SAR,PRC|Investment|HKD 10,000.00|6,278,500.00|94,014,181.00|100.00|-|100.00|Y|Established through investment|
|Hinwin Development Limited||||||||||||
||Shenzhen,PRC|Shenzhen, PRC|Logistics supportservices|28,820.00|250,920,000.00|-|100.00|-|100.00|Y|Combination involving enterprisesunder common control|
|CHCC||||||||||||
||Shenzhen,PRC|Shenzhen, PRC|Logistics supportservices|1,500.00|7,000,000.00|-|100.00|-|100.00|Y|Combination involving enterprisesunder common control|
|Shenzhen Chiwan Transportation Co., Ltd||||||||||||
||Shenzhen,PRC|Shenzhen, PRC|Logistics supportservices|USD 95,300,000.00|485,990,004.00|-|55.00|-|55.00|Y|Combination involving enterprisesunder common control|
|CCT||||||||||||
||Shenzhen,PRC|Shenzhen, PRC|Logistics supportservices|2,400.00|24,000,000.00|-|100.00|-|100.00|Y|Combination involving enterprisesunder common control|
|Shenzhen Chiwan Tugboat Co., Ltd||||||||||||
||Hong KongSAR, PRC|Hong Kong SAR,PRC|Logistics supportservices|HKD 800,000.00|856,000.00|-|100.00|-|100.00|Y|Combination involving enterprisesunder common control|
|Chiwan Shipping (Hong Kong) Limited||||||||||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VII) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(2) Material non-wholly-owned subsidiaries
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Proportion|||||||
|||of|||||||
|||ownership||Profit or loss|||||
|||interest held||attributable to||Payments for|||
|||by the||minority shareholders||dividends to minority|||
|||minority||at the end of the||shareholders in the||Closing balance of|
|Name of the subsidiary||shareholders||period||current period||minority interest|
|Six months ended 30 June 2018|||||||||
|DGW|15%||7,030,733.26||-||94,230,145.91||
|CCT|45%||56,414,598.58||97,429,396.88||718,652,805.03||
|Media Port Investments Limited(note)|50%||63,869,848.13||-||-||
|Total|||127,315,179.97||97,429,396.88||812,882,950.94||
|2017|||||||||
|DGW|15%||9,569,883.39||-||87,165,123.43||
|CCT|45%||92,767,094.87||-||661,365,910.74||
|Media Port Investments Limited|50%||107,026,732.42||39,636,273.27||895,542,469.54||
|Total|||209,363,710.68||39,636,273.27||1,644,073,503.71||

 Note: Since 8 June 2018, MPIL and its subsidiary FIL and Mawan Companise are excluded from the scope of the consolidated financial statements. Reasons for the change is set out in VI Changes in scope of consolidation in detail.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VII) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries - continued
(3) Significant financial information of material non-wholly-owned subsidiaries
Unit: RMB
||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Closing balance|||||||||||||Opening balance||||||||||||
|Name of the subsidiary||Current assets||Non-current assets||Total assets||Current liabilities||Non-current liabiliti|es||Total liabilities||Current assets||Non-current assets||Total assets||Current liabilities||Non-current liabiliti|es||Total liabilities|
||158,548,547.87||1,087,451,242.31||1,245,999,790.18||508,132,702.90||123,902,052.88|||632,034,755.78||137,772,942.26||1,112,570,229.43||1,250,343,171.69||559,146,733.45||124,331,553.70|||683,478,287.15||
|DGW|||||||||||||||||||||||||||
||370,062,864.14||1,496,174,822.65||1,866,237,686.79||212,468,245.42||56,763,207.96|||269,231,453.38||678,711,591.05||1,522,110,310.61||2,200,821,901.66||667,684,799.02||63,435,078.77|||731,119,877.79||
|CCT|||||||||||||||||||||||||||

 Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Accumulated amount for the period||||||||Accumulated amounts for the prior period||||||
|||Operating||||Total||Cash flows from||Operating|||Total||Cash flows from|
|Name of the subsidiary||income||Net profit||comprehensive||operating||income|Net profit||comprehensive||operating|
|DGW|160,907,339.98||46,871,555.05||46i,n8c7o1m,5e5 5.05||68a,c6ti8v8i,t9ie8s4 .23||159,643,720.20||43,662,466.15|43i,n6c6o2m,4e6 6.15||3a5c,2ti5v8it,i0e2s0 .10||
|CCT|381,347,218.87||125,365,774.63||125,365,774.63||82,350,172.20||326,262,590.52||82,862,059.33|82,862,059.33||190,279,725.34||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VII) EQUITY IN OTHER ENTITIES - continued
2. Interests in joint ventures and associates
(1) Material joint ventures or associates
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Proportion of ownership||Proportion of voting power in the|||
|||||interests held by the Group (%)||investee held by the Group (%)||Accounting method|
|||||||||of investments in|
||Principal place|Place of|Nature of||31 December||31 December|joint ventures and|
|Investee|of business|incorporation|business|30 June 2018|2017|30 June 2018|2017|associates|
||Laizhou|Laizhou|Warehousingand logistics|40.00|40.00|40.00|40.00|Equity method|
|COHA (Laizhou)|||||||||
||Shenzhen|The BritishVirgin Islands(B.V.I.)|Investmentholding|50.00|50.00|50.00|50.00|Costmethod/equitymethod|
|Media Port Investments Limited|||||||||

 Note: MPIL was accounted for using cost method for January to May 2018, and has been accounted for using equity method since June 2018. Reasons for the change in accounthing method is set out in VI Changes in scope of consolidation in detail.
(2) Financial information of material joint venture
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||COHA (Laizhou)||||
||||Closing||Opening balance/|e|
||||balance/Accumulated||Accumulated amounts for th||
||||amount for the period||prior period||
|C|urrent assets|417,950,192.92||427,943,558.13|||
|I|ncluding: cash and cash equivalent|338,632,208.81||352,242,258.50|||
||Non-current assets|1,538,211,801.78||1,750,656,867.73|||
|T|otal assets|1,956,161,994.70||2,178,600,425.86|||
|C|urrent liabilities|220,407,763.74||52,930,096.22|||
||Non-current liabilities|-||168,728,000.00|||
|T|otal liabilities|220,407,763.74||221,658,096.22|||
||Minority interests|785,847.02||845,811.39|||
|T|otal equity attributable to shareholders of the parent company|1,734,968,383.94||1,956,096,518.25|||
|i|Net assets calculated based on the proportion of ownership|693,987,353.58||782,438,607.30|||
||nterest||||||
||Adjustments||||||
|-|Goodwill|-||-|||
|-|Unrealized Profits Resulting from Intragroup Transactions|-||-|||
|-|Others|154,458,955.09||1,229,696.54|||
|C|arrying amounts of equity investments in Joint|848,446,308.67||783,668,303.84|||
||Operating income|179,242,296.36||198,791,298.68|||
|F|inancial expenses|(2,188,829.59)||(2,636,003.23)|||
|I|ncome tax expenses|23,489,626.81||25,348,143.97|||
||Net profit|65,538,780.96||72,846,811.50|||
||Other comprehensive income|-||-|||
|T|otal comprehensive income|65,538,780.96||72,846,811.50|||
||Dividends received from joint ventures in the current period|38,562,004.83||54,159,674.42|||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VII) EQUITY IN OTHER ENTITIES - continued
2. Interests in joint ventures and associates - continued
(3) Financial information of material associate
Unit: RMB
|||||
|-|-|-|-|
||||MPIL|
||||Closing balance/Accumulated amount for the period|
||Current assets|278,726,537.14||
|I|ncluding: Cash and cash equivelant|142,865,288.69||
||Non-current assets|1,182,646,768.36||
|T|otal assets|1,461,373,305.50||
||Current liabilities|120,142,468.21||
||Non-current liabilities|7,173,682.40||
|T|otal liabilities|127,316,150.61||
||Minority interest|506,406,198.71||
||Attributable to shareholders of the Company|827,650,956.18||
|S|hare of net assets calculated by shareholding ratio|413,825,478.09||
||Adjusting events|||
|-|Goodwill|-||
|-|Unrealizes profit of internal trasaction|-||
|-|Others|(1,950,543.50)||
||Carrying amount of equity investments in joint venture|411,874,934.59||
||Operating income|315,088,074.30||
|F|inancial expenses|1,753,214.33||
|I|ncome tax expenses|25,792,606.10||
||Net profit|118,541,180.92||
||Other comprehensive income|-||
|T|otal comprehensive income|118,541,180.92||
||Dividend received from joint venture for the current peiord|-||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VII) EQUITY IN OTHER ENTITIES - continued
2. Interests in joint ventures and associates - continued
(4) A summary of financial information of non-material joint ventures and associates
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||Closing balance/Accumulated||Opening balance/ Accumulate|d|
||||amount for the period||amounts for the prior period||
|J|oint venture:||||||
|T|otal carrying amount of investments|-||2,487,441.63|||
|s|Aggregate amounts of the following items based on||||||
||hareholding ratio||||||
|-|Net profit|(245,876.96)||120,932.91|||
|-|Other comprehensive income||||||
|-|Total comprehensive income|(245,876.96)||120,932.91|||
||Associate:||||||
|T|otal carrying amount of investments|377,875,594.50||366,464,294.50|||
|s|Aggregate amounts of the following items based on||||||
||hareholding ratio||||||
|-|Net profit|11,411,300.00||11,937,186.82|||
|-|Other comprehensive income|-||-|||
|-|Total comprehensive income|11,411,300.00||11,937,186.82|||

 (5) As at 30 June 2018, the long-term equity investments of the Group were not subject to restriction on disposal or remittance of return on investments.
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Group's major financial instruments include cash and bank balances, notes receivable, account receivables, interest receivable, other receivables, other investments in equity instruments, account payables, interest payable, dividends payable, other payables, other current liabilities, bonds payable and long-term payables. Details of these financial instruments are disclosed in Note (V). The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure the risks are monitored at a certain level.
The Group adopts sensitivity analysis techniques to analyze how the entity's profit or loss and for the period and shareholders' equity would have been affected by changes in the relevant risk variables that were reasonably possible. As it is unlikely that risk variables will change in an isolated manner, and the interdependence between risk variables will have significant effect on the amount ultimately influenced by the changes in a single risk variable, the following items are
based on the assumption that each risk variable has changes on a stand-alone basis.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1．Risk management objectives and policies
The Group's risk management objectives are to achieve proper balance between risks and yield, minimize the adverse impacts of risks on the Group's operation performance, and maximize the benefits of the shareholders and other equity investors. Based on these risk management objectives, the Group's basic risk management strategy is to identify and analyze the industry's exposure to various risks, establish appropriate bottom line for risk tolerance, implement risk management, and monitors these exposures to ensure the risks are monitored at a certain level. 1.1 Market risk
1.1.1 Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The Group's exposure to the currency risk is primarily associated with USD and HKD. Several of the Group's subsidiaries have purchases and sales denominated in HKD while the Group's other principal activities are denominated and settled in RMB. As at 30 June 2018, the balance of the Group's assets and liabilities are both denominated in functional currency, except that balance of assets set out below is in HKD and USD. Currency risk arising from the foreign currency balance of assets and liabilities may have impact on the Group's performance.
Unit: RMB
|||||
|-|-|-|-|
|Item|Closing amount in RMB||Opening amount in RMB|
|Cash and bank balances|87,956,808.14|306,678,253.02||
|Including: HKD|65,176,099.55|98,924,721.37||
|USD|22,780,708.59|207,753,531.65||
|Accounts receivable|29,815,576.40|12,973,639.48||
|Including: HKD|24,693,973.09|13,657,705.66||
|USD|5,121,603.31|(684,066.18)||
|Interest receivable|-|417,580.12||
|Including: HKD|-|112,066.15||
|USD|-|305,513.97||
|Other receivables|140,037.88|183,405.92||
|Including: HKD|139,945.25|183,314.44||
|USD|92.63|91.48||
|Short-term borrowings|151,758,000.00|-||
|Including: HKD|151,758,000.00|-||
|Accounts payable|3,389,950.83|2,858,955.26||
|Including: HKD|3,389,950.83|2,858,955.26||
|Other payables|(219,874.59)|529,668.20||
|Including: HKD|32,043.46|778,448.98||
|USD|(251,918.05)|(248,780.78)||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1．Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.1 Currency risk - continued
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's currency risk exposures. According to the current risk exposure and judgment of the exchange rate movements, management considers the probable heavy loss resulted from foreign exchange rate fluctuation to be fairly low.
Sensitivity analysis on currency risk
The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and hedges of a net investment in a foreign operation are highly effective. On the basis of the above assumption, where all other variables are held constant, the reasonably possible changes in the foreign exchange rate may have the following pre-tax effect on the profit or loss for the period or equity:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Closing balance||||Opening balance|||
|||||||Effect on||||Effect on|
|Item||Changes in exchange rate||Effect on profits||shareholders' equity||Effect on profits||shareholders' equity|
|All foreign|5% increase against RMB||(1,850,782.69)||(1,850,782.69)||13,043,890.14||13,043,890.14||
|currencies|||||||||||
|All foreign|5% decrease against RMB||1,850,782.69||1,850,782.69||(13,043,890.14)||(13,043,890.14)||
|currencies|||||||||||

1.1.2 Interest rate risk - changes in cash flows
Risk derived from changes in cash flows of financial instruments is mainly related to bank loan with floating interest rate. Details are disclosed in Note (V) 21. This Group takes the measure of maintaining the floating interest rate of the bank loan, as a way to reduce the interest rate risk arising from changes in fair value.
Sensitivity analysis of interest rate risk
Sensitivity analysis of interest rate risk is based on the following assumptions:
• Fluctuations of market interest rate can affect the interest income or expense of a financial instrument with floating interest rate.
• For a financial instrument at fair value with fixed interest rate, the fluctuations of market interest rate can only affect its interest income or expense.
• For a derivative financial instrument recognized as hedging instrument, the fluctuations of market
interest rate affects its fair value and interest rate hedging estimation are effective and efficient.
• Market interest rate at the balance sheet date is adopted to calculate fair value changes of derivative
financial instruments and other financial assets and liabilities under discounted cash flow method.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1．Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.2 Interest rate risk - changes in cash flows - continued
Given that other variables unchanged on the basis of above assumptions, the pre-tax effect on the profit or loss for the current period from possible and reasonable changes of interest rate are as follows:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Closing balance||||Opening balance|||
|||Changes in||||Effect on||||Effect on|
|Item||interest rate||Effect on profits||shareholders' equity||Effect on profits||shareholders' equity|
||1% increase||5,017,580.00||5,017,580.00||1,550,000.00||1,550,000.00||
|Short-term borrowings|||||||||||
||1% decrease||(5,017,580.00)||(5,017,580.00)||(1,550,000.00)||(1,550,000.00)||
|Short-term borrowings|||||||||||

 1.1.3 Other price risk
Other equity instruments are measured at fair value by the Group at the balance sheet date. Hence the Group takes risk of changes in the securities market. The Group closely monitors the effects of changes in the foreign exchange prices on the Group's equity investment securities. The Group has not taken any measures to reduce prices risk of equity investment securities.
1.2 Credit risk
As at 30 June 2018, the Group's maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties and financial guarantees issued by the Group is arising from the carrying amount of the respective recognized financial assets as stated in the consolidated balance sheet. For financial instruments measured at fair value, the carrying amount reflects the exposure to risks but not the maximum exposure to risks; the maximum exposure to risks would vary according to the future changes in fair value. In order to minimize the credit risk, the Group has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the management of the Group considers that the Group's credit risk is significantly reduced.
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings.
The Group adopted necessary policies to make sure that all clients and customers are attributed
with merit credit records.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.3 Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group's operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilization of bank borrowings and ensures compliance with loan covenants.
The following is the maturity analysis for financial assets and financial liabilities held by the Group which is based on undiscounted remaining contractual obligations:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Item||Carrying amount||Total amount||Within 1 year||1-5 years|More than 5 years|
|The non-derivative financial assets|||||||||||
||Cash and bank balances|468,287,526.00||468,287,526.00||468,287,526.00||-||-|
||Accounts receivable|307,047,142.75||307,047,142.75||307,047,142.75||-||-|
||Interest receivable|95,277.78||95,277.78||95,277.78||-||-|
||Other receivables|17,220,164.87||17,220,164.87||17,220,164.87||-||-|
||The non-derivative financial liabilities||||||||||
||Short-term borrowings|501,758,000.00||501,758,000.00||501,758,000.00||-||-|
||Accounts payable|105,261,259.62||105,261,259.62||105,261,259.62||-||-|
||Interest payable|8,998,745.37||8,998,745.37||8,998,745.37||-||-|
||Dividends payable|165,955,102.54||165,955,102.54||165,955,102.54||-||-|
||Other payables|72,503,833.26||72,503,833.26||72,503,833.26||-||-|
||Other current liabilities|200,000,000.00||206,920,054.79||206,920,054.79||-||-|
||Bonds payable|299,229,041.07||311,424,328.77||8,910,000.00||302,514,328.77||-|

 (IX) FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Unit: RMB
||||||
|-|-|-|-|-|
||Closing Balance||||
|Item|Level 1|Level 2|Level 3|Total|
|Measurements at fair value continuously|||||
|Other investments in equity instruments|9,070,000.00|-|137,393,840.00|146,463,840.00|
|Total assets measured at fair value|9,070,000.00|-|137,393,840.00|146,463,840.00|
|continuously|||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(IX) FAIR VALUE - continued
2. Basis for determining the market price measured at fair value at level I continuously The market price of assets and liabilities measured at fair value at level I continuously is determined by the Shanghai stock exchange closing price of equity instruments at 29 June 2018. 3. Basis for determining the market price measured at fair value at level III continuously The fair value of unquoted equity instruments included in other equity instruments is determined by the cost method. The cost method is a valuation technique that reflects the amount needed for the replacement of relevant asset service capability.
4. Information of financial assets and financial liabilities that are not measured at fair value The management considers that the carrying amount of financial assets and liabilities measured at amortized cost is approximately equal to the fair value of financial assets and liabilities. (X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Proportion of the entity's|Proportion of the entity's|
||Related party|Type of the|Place of|Legal|Nature of||ownership interests held by|voting power held by the|
|Name of the parent|relationship|entity|incorporation|representative|business|Issued share capital|the parent (%)|parent (%)|
||Parent company|Company withlimited liability|Shenzhen|Deng Weidong|Equityinvestment|RMB 0.5 billion|57.52%|57.52%|
|CM Gangtong|||||||||

Note: CM Gangtong Development holds 370,878,000 shares of A Share of Shenzhen Chiwan, accounting for57.52% of Shenzhen Chiwan's issued share capital, and is entitled to57.52% of the Company's voting power. Therefore, CM Gangtong Development becomes the parent of the Company. The Company's ultimate actual controller is China Merchant Group. 2. Subsidiaries of the Company
The general background and other related information of subsidiaries are set out in Note (VII) 1. 3. Associates and joint ventures of the Company
The general background and other related information of the significant associates and joint ventures are set out in Note (VII) 2.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company
|||
|-|-|
||Relationships between other related|
|Name of other related parties|parties and the Company|
|Shenzhen Haiqin Engineering Management Co., Ltd. ("Haiqin Engineering")|Controlled by the same ultimate actual controller|
|China Merchants Port Services (Shenzhen) Co., Ltd. ("CMPS")|Controlled by the same ultimate actual controller|
|Shekou Container Terminals Limited ("SCT")|Controlled by the same ultimate actual controller|
|Shenzhen Haixing Harbor Development Co., Ltd. ("Haixing")|Controlled by the same ultimate actual controller|
|Shenzhen Huxing Tug Service Co., Ltd. ("Huxing Tug")|Controlled by the same ultimate actual controller|
|Shenzhen Lianda Tug Service Co., Ltd. ("Lianda Tug")|Controlled by the same ultimate actual controller|
|China Merchants Container Services Ltd. ("China Merchants Container")|Controlled by the same ultimate actual controller|
|CMCI|Controlled by the same ultimate actual controller|
|Malai Warehouse|Controlled by the same ultimate actual controller|
|Shantou CMPort Group Co., Ltd. ("Shantou Port")|Controlled by the same ultimate actual controller|
|Colombo International Container Terminals Limited ("CICT")|Controlled by the same ultimate actual controller|
|Guangdong Yide Port Co., Ltd. ("Yide Port")|Controlled by the same ultimate actual controller|
|Shenzhen China Merchants Qianhaiwan Property Co., Ltd. ("Qianhai Property")|Controlled by the same ultimate actual controller|
|China Merchants International Cold Chain (Shenzhen) Co., Ltd. ("CMCCL")|Controlled by the same ultimate actual controller|
|China Ocean Shipping Agency (Shenzhen) Co., Ltd. ("Ocean Shipping Agency")|Controlled by the same ultimate actual controller|
|Shenzhen China Merchants Shangzhi Investment Co., Ltd. ("China Merchants Shangzhi")|Controlled by the same ultimate actual controller|
|Shenzhen China Merchants International Shipping Agency Co., Ltd. ("Shipping Agency")|Controlled by the same ultimate actual controller|
|Youlian Shipyard (Shekou) Co. Ltd. ("Youlian Shipyard")|Controlled by the same ultimate actual controller|
|Shenzhen China Merchants Property Management Co., Ltd. ("China Merchants Property")|Controlled by the same ultimate actual controller|
|Guangzhou International Ocean Shipping Agency Co., Ltd. ("International Ocean Shipping")|Controlled by the same ultimate actual controller|
|China Ocean Shipping Tally Shenzhen Co., Ltd. ("Ocean Shipping Tally")|Controlled by the same ultimate actual controller|
|China Merchants Houlder Insurance Co., Ltd. ("Houlder Insurance")|Controlled by the same ultimate actual controller|
|Hoi Tung (Shanghai) Co., Ltd. ("Hoi Tung Shanghai")|Controlled by the same ultimate actual controller|
|Hoi Tung (Shenzhen) Co., Ltd. ("Hoi Tung Shenzhen")|Controlled by the same ultimate actual controller|
|Shenzhen South China Liquefied Gas Marine Co., Ltd. (South China Liquefied Gas)|Controlled by the same ultimate actual controller|
|China Marine Shipping Agency, Shenzhen Co., Ltd. ("CMSA")|Controlled by the same ultimate actual controller|
|Sinoway Shipping Ltd. ("Sinoway")|Controlled by the same ultimate actual controller|
|China Merchants Heavy Industry Shenzhen Co., Ltd. ("CMHI")|Controlled by the same ultimate actual controller|
|Sinotrans Shenzhen Customs Broker Co., Ltd. ("Sinotrans Customs Broker")|Controlled by the same ultimate actual controller|
|Sinotrans Shenzhen Logistics Co., Ltd. ("Sinotrans Logistics")|Controlled by the same ultimate actual controller|
|China Merchants Group Finance Company Limited ("CMFC")|Controlled by the same ultimate actual controller|
|Changjiang Shipping Science Research Institute Co., Ltd. ("Changjiang Shipping")|Controlled by the same ultimate actual controller|
||Shared common key management personnel withits parent company|
|Shenzhen Chiwan Petroleum Supply Base Co., Ltd. ("Chiwan Base ") (note)||
||Shared common key management personnel withits parent company|
|Zengcheng Xinkang Property Co., Ltd. ("Zengcheng Xinkang")(note)||
||Shared common key management personnel withits parent company|
|Shenzhen Baowan International logistics Co., Ltd. ("Baowan Logistics")(note)||
||Shared common key management personnel withits parent company|
|Shenzhen Chiwan Property Management Co., Ltd. ("Chiwan Property")(note)||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company - continued
|||
|-|-|
||Relationships between other related|
|Name of other related parties|parties and the Company|
||Shared common key management personnel with its parentcompany|
|Shenzhen Xuqin Industrial Development Co., Ltd. ("Xuqin")(note)||
||Shared common key management personnel with its parentcompany|
|China Development Financial Co., Ltd. ("CDFC")(note)||
||Shared common key management personnel with its parentcompany|
|Shenzhen Chiwan Oriental Logistics Co., Ltd. ("Chiwan Oriental Logistics")(note)||
|COFCO-CMG (Shenzhen) Grains E-Trading Center Co., Ltd. ("COFCO-|Influenced significantly by the ultimate actual controller|
|CMG")(note)||
|Nanshan Group(note)|Shared common key management personnel|
|Shenzhen Mawan Terminals Co., Ltd.("Shenzhen Mawan Terminals") (Note)|Controlled by the same ultimate actual controller|
|Shenzhen Mawan Port Co, Ltd. ("Shenzhen Mawan Port") (Note)|Controlled by the same ultimate actual controller|
|Shenzhen Mawan Wharf Co., Ltd. ("Shenzhen Mawan Wharf")(Note)|Controlled by the same ultimate actual controller|
|China Merchant Bank Co., Ltd. ("CMB")|Influenced significantly by the ultimate actual controller|
|HK International|Minority shareholder of the subsidiary|
|Hidoney|Minority shareholder of the subsidiary|
|Yihai Kerry|Minority shareholder of the subsidiary|
|Shenzhen Qianhai Bay Warehousing Service Co., Ltd. ("Qianhai Bay|Subsidiary of the associate|
|Warehousing")||

Note: As at 8 June 2018, Nanshan Group completed the registration procedure for its transfer of the Company's shares, but shared the common key management personnel who is Zhangjianguo, thus Nanshan Group and its subsidiary companies are still recognized as related parties of the Company. In addition, MPIL and its subsidiary companies are included in the scope of the consolidated financial statements as subsidiaries of the Company prior to 8 June 2018, and are considered as related parties of the Company since 8 June 2018.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions
(1) Provision and receipt of services
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and|||
|||decision-|||
|||making|||
|||procedures of|||
||Content of related party|related party||Opening|
|Related parties|transaction|transactions|Closing balance|balance|
|Purchase of goods and Receipt of services：|||||
|SCT|Load and unload service|Negotiation|2,635,056.60|3,626,418.05|
|CMSA|Platform use fee|Negotiation|1,864,647.00|1,976,679.00|
|China Merchants Holdings|Technical service fee|Negotiation|1,354,548.46|1,576,792.47|
|(International) Information|||||
|Technology Co., Ltd|||||
|CMBL|Load and unload service|Negotiation|1,250,128.87|1,109,581.53|
|Hoi Tung (Shanghai) Co., Ltd.|Logistics service|Negotiation|1,102,097.01|-|
||Property managementservice|Negotiation|892,090.65|1,022,057.59|
|Chiwan Property|||||
|Haiqin Engineering|Engineering management|Negotiation|649,847.89|1,843,555.46|
||Property managementservice|Negotiation|226,977.15|1,437,456.47|
|China Merchants Property|||||
|Lianda Tug|Tugging service|Negotiation|202,182.97|203,305.19|
|Haixing|Load and unload service|Negotiation|437,751.86|3,196,426.77|
|Ocean Shipping Agency|Agency service|Negotiation|168,390.00|250,650.00|
|Xuqin|Landscape Engineering|Negotiation|116,416.99|422,920.75|
|Shenzhen Mawan Port|Load and unload service|Negotiation|4,800.00|-|
|Shenzhen Mawan Wharf|Load and unload service|Negotiation|2,971.70|-|
|Shipping Agency|Customs broker service|Negotiation|2,250.00|-|
||Property managementservice|Negotiation|-|159,666.73|
|Zengcheng Xinkang|||||
|Total|||10,910,157.15|16,825,510.01|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(1) Provision and receipt of services - continued
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and|||
|||decision-making|||
|||procedures of|||
||Content of related party|related party||Opening|
|Related parties|transaction|transactions|Closing balance|balance|
|Rendering of services：|||||
|Ocean Shipping Agency|Tugboat service etc.|Negotiation|10,798,733.35|7,224,052.83|
||Load and unload serviceetc.|Negotiation|6,485,623.04|12,657,355.91|
|SCT|||||
|Shenzhen Mawan Terminals|Trailer service etc.|Negotiation|2,106,107.26|-|
|CMSA|Tugboat service etc.|Negotiation|1,651,640.10|1,697,221.51|
|Shipping Agency|Tugboat service etc.|Negotiation|1,242,808.91|1,540,547.29|
|Youlian Shipyard|Tugboat service|Negotiation|842,098.87|228,868.87|
|International Ocean Shipping|Berthing services etc.|Negotiation|614,411.35|455,734.78|
|Shenzhen Mawan Port|Tugboat service etc.|Negotiation|543,220.69|-|
|Haixing|Load and unload service|Negotiation|405,618.87|523,627.15|
|Lianda Tug|Tugboat service|Negotiation|398,656.67|280,898.54|
|COHA (Laizhou)|Labor dispatch|Negotiation|167,696.72|-|
|Sinoway|Load and unload service|Negotiation|94,449.53|35,252.88|
|China Marine Shipping Agency,|Load and unload service|Negotiation|66,983.02|3,354.48|
|Guangdong Co., Ltd.|||||
|Sinotrans Container Liners Co., Ltd.|Others|Negotiation|61,141.51|-|
|CMHI|Tugboat service|Negotiation|41,037.74|16,796.23|
|Shenzhen South China Liquefied Gas|Tugboat service|Negotiation|38,207.55|-|
|Marine Co., Ltd.|||||
|Sinotrans Shenzhen Logistics Co., Ltd.|Others|Negotiation|34,773.59|10,787.74|
|Hunan Xianing Inland Port Co., Ltd.|Interest income|Negotiation|10,208.34|12,250.00|
|Sinotrans Modern Logistics Co., Ltd.|Others|Negotiation|6,603.77|-|
|Qianhai Bay Warehousing|Port administration|Negotiation|1,028.29|-|
|COFCO-CMG (Shenzhen) Grains E-|Load and unload service|Negotiation|-|627,197.62|
|Trading Center Co., Ltd.|||||
|Sinotrans Shenzhen Customs Broker|Others|Negotiation|-|7,287.74|
|Co., Ltd.|||||
|Zengcheng Xinkang|Others|Negotiation|-|1,820.31|
|Total|||25,611,049.17|25,323,053.88|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties
The Group as the lessor:
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and|||
|||decision-making||Lease income|
|||procedures of|Lease income|recognized in the|
|||related party|recognized in the|prior period|
|Name of lessee|Type of leased assets|transactions|current period|(restated)|
|CMBL|Crane|Negotiation|1,028,180.43|932,038.83|
|International Ocean Shipping|Office|Negotiation|30,285.72|-|
|Total|||1,058,466.15|932,038.83|

 The Group as the lessee:
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and|||
|||decision-making||Lease payment|
|||procedures of|Lease payment|recognized in the|
|||related party|recognized in the|prior period|
|Name of lessor|Type of leased assets|transactions|current period|(restated)|
||Land, Office andpacking yard|Negotiation|29,407,300.56|35,087,942.41|
|Nanshan Group|||||
|Malai Warehouse|Office|Negotiation|6,556,000.55|6,363,045.53|
|CMPS|Former Bay port lands|Negotiation|4,107,365.30|2,142,561.21|
|Chiwan Base|Office|Negotiation|1,584,610.03|772,310.94|
|CMBL|Packing yard|Negotiation|1,105,291.53|-|
|China Merchants Shangzhi|Building|Negotiation|475,398.88|725,718.42|
|Haixing|Warehouse|Negotiation|238,095.25|-|
|Qianhai Property|Staff dormitory|Negotiation|140,142.26|-|
|SCT|Crane|Negotiation|41,616.00|-|
|Baowan Logistics|Building|Negotiation|36,042.34|54,182.99|
|Total|||43,691,862.70|45,145,761.50|

 (4) Compensation for key management personnel
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Compensation for key management personnel|9,424,126.88|7,687,958.70|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Related parties|Closing balance|Opening balance|
|Cash and bank balances|CMB|343,822,560.05|167,483,337.47|
||CMFC|573,885.94|150,359,313.40|
||CDFC|-|1,192,728.52|
||Total|344,396,445.99|319,035,379.39|
|Accounts receivable|Ocean Shipping Agency|4,479,840.00|3,361,117.20|
||Shenzhen Mawan Terminals|2,212,479.29|-|
||Shenzhen Mawan Port|586,166.42|-|
||SCT|545,615.00|1,062,978.75|
||CMSA|426,034.00|437,479.20|
||Shipping agency|253,025.00|474,274.00|
||Sinoway|42,727.75|90,067.75|
||CMBL|16,262.50|8,242.50|
||Sinotrans Modern Logistics Co., Ltd.|7,000.00|-|
||Qianhai Bay Warehousing|280.00|445.00|
||International Ocean Shipping|-|13,642.00|
||Haixing|-|978,150.00|
||Total|8,569,429.96|6,426,396.40|
|Interest receivable|Hunan Xianing Inland Port Co., Ltd.|-|153,625.26|
|Other receivables|CMBL|4,747,624.49|7,171,552.07|
||Qianhai Property|1,088,414.30|707,092.00|
||China Merchants Shangzhi|375,346.11|459,776.40|
||Shantou Port|69,594.33|17,333.33|
||Malai Warehouse|20,052.00|74,331.70|
||Nanshan Group|1,096,590.39|1,124,300.09|
||SCT|-|780,160.16|
||Xuqin|3,000.00|638,268.65|
||Hunan Xianing Inland Port Co., Ltd.|-|500,000.00|
||Chiwan Base|135,624.91|280,049.31|
||CICT|-|266,888.68|
||Qianhai Bay Warehousing|-|2,848.00|
||Total|7,536,243.53|12,022,600.39|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
Unit: RMB
|||||
|-|-|-|-|
|Item|Related parties|Closing balance|Opening balance|
|Accounts payable|CMPS|1,311,295.40|-|
||SCT|862,445.00|291,710.00|
||CMSA|751,036.71|727,528.71|
||Hoi Tung Shanghai|445,633.00|-|
||Haixing|267,332.00|406,723.76|
||CMBL|195,883.17|-|
||Shenzhen Mawan Port|11,702.40|-|
||Nanshan Group|15,398,431.16|16,968,830.09|
||Xuqin|414,404.35|513,673.35|
||Chiwan Base|836,400.00|139,400.00|
||Hoi Tung Shanghai|-|111,383.00|
||CMPH|-|99,675.65|
||Haiqin Engineering|-|9,589.08|
||China Merchants Holdings (International)|-|9,000.00|
||ITnoftoarlm ation Technology Co., Ltd.|20,494,563.19|19,277,513.64|
|Interest payable|CMFC|477,630.00|-|
|Receipts in advance|Sinotrans Customs Broker|139,174.00|-|
||Sinotrans Logistics|149.00|224.00|
||CMBL|-|60,000.00|
||Total|139,323.00|60,224.00|
|Dividends payable|Yihai Kerry|37,402,426.09|37,402,426.09|
||International Enterprise Co., Ltd.|128,552,676.45|128,552,676.45|
||Hidoney|-|97,429,396.88|
||Total|165,955,102.54|263,384,499.42|
|Other payables|CMBL|1,325,136.61|3,072,676.67|
||China Merchants Holdings (International)|760,400.03|426,850.00|
||ICnhfoinram Matieornch Taenctsh nPorolopgeyrt Cy o ., Ltd|707,112.00|909,600.00|
||China Merchants Shangzhi|565,090.53|1,410,393.60|
||Haiqin Engineering|177,725.92|69,182.10|
||China Marine Shipping Agency,Guangdong Co., Ltd.|10,000.00|-|
||International Ocean Shipping|10,000.00|10,000.00|
||CMG|8,570.12|8,570.12|
||SCT|6,936.00|252,753.69|
||Qianhai Property|4,242.18|-|
||Xuqin|54,298.55|735,859.33|
||CMPH|-|545,675.52|
||Changjiang Shipping|-|250,000.00|
||Nanshan Group|435,488.63|91,932.50|
||Chiwan Property|209,792.42|28,848.52|
||Chiwan Base|139,354.40||
||Total|4,414,147.39|7,812,342.05|
|Long-term payables|CMCI|-|25,000,000.00|

Note: Details are set out in Note (X) 4.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XI) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
(1) Capital commitments
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Capital commitments that have been entered into but have not been|||
|recognized in the financial statements:|||
|-Commitment to acquisition of long-term assets|24,007,014.03|30,484,737.52|
|Total|24,007,014.03|30,484,737.52|

 (2) Operating lease commitments
As of the balance sheet date, the Group had the following commitments in respect of non- cancellable operating leases:
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Minimum lease payments under non-cancellable operating leases:|||
|1st year subsequent to the balance sheet date|69,474,611.73|65,794,063.84|
|2nd year subsequent to the balance sheet date|5,408,669.85|20,203,938.24|
|3rd year subsequent to the balance sheet date|2,951,656.65|4,971,789.36|
|More than 3 years|175,795.35|186,894.24|
|Total|78,010,733.58|91,156,685.68|

 2. Contingencies
No material contingencies that should be disclosed by the Group.
(XII) EVENTS AFTER THE BALANCE SHEET
1.Events related to purchasing assets and raising matching funds by issuance of shares 26 July 2018, the proposals related to purchasing assets and raising matching funds by issuance of shares and related parties transactions were discussed and passed in the second extraodinary general meeting of shareholders for 2018. The main content is as follows: (1) the Company proposed to acquire 1,313,541,560 shares of ordinary share of CMPH (accounting for39.61% of its issued ordinary share) held by China Merchants Investment Development Company Limited ("CMID") by issuing A Share; (2) China Merchants Holdings (Hong Kong) Company Limited ("CMHK") and the Company enter into an Agreement on Concerted Action, agreeing that subsequent to the completion of purchase of assets by issuance of shares, CMHK's exercise of voting power via entrustment of 753,793,751 shares of ordinary share of CMPH (accounting for around22.67% of CM Port's issued ordinary shares) shall be in agreement with the Company's
voting on events for review and discussion in the general meeting of shareholders of CMPH
unconditionally, and the voting is subject to the opinion of Shenzhen Chiwan; (3) the Company
proposed to issue A Share to no more than 10 specific investors to raise matching funds by
inquiring prices. The aggregate amount of matching funds shall not exceed RMB 400,000.00,
with no more than 128,952,746 to be issued.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XII) EVENTS AFTER THE BALANCE SHEET - continued
The Agreement on Concerted Action would not go into effect and raising matching funds would not be performed without purchasing assets by issuance of shares. But success of raising matching funds is not precondition of purchasing assets by issuance of shares nor the effectiveness of The Agreement on Concerted Action. The success or failure of raising matching funds has no impact on purchasing assets by issuance of shares and effectiveness or performance of The Agreement on Concerted Action.
2. Capital increase to Zhoushan RoRo
On 29 August 2018, Zhoushan RoRo changed its name to “CMPort (Zhoushan) RoRo Logistcis Co., Ltd.” and completed the formalities for the change of its directors, supervisors and senior executives with the industrial and commercial administration. As such, Zhoushan RoRo has officially become a controlled subsidiary of the Company. From that day on, CMPort (Zhoushan) RoRo Logistcis Co., Ltd. is included in theCompany’s consolidated financial statements. (XIII) OTHER SIGNIFICANT EVENTS
1. Annuity plan
On 3 June 2008, the Group participated in the enterprise annuity plan of Nanshan Group approved by Shenzhen government. Funds involved were deposited in the managed account coordinated by Nanshan Group. Staffs would be qualified to participant the annuity plan if the following requirements are met:
(i) Staff with labor contracts signed. (ii) Staff with basic pension participated in. (iii) On-the-job and in-service staff with probation expired. (iv)Voluntarily participated in the plan and perform the obligation of payment. The Group and staffs share the payment of the supplementary pension. Excess payment would not be allowed so as to keep the payment made by the Group and total payment made by the Group and the individual under the limit of one-twelfth and the one-sixth of the prior year's gross payroll respectively.
2. Significant acquisition
The first extraodinary session of the ninth Board of Directors on 11 September 2017 approved The acquisition proposal of51% shares of Zhongshan Ganghang Enterprise Group Co., Ltd. The Company agreed to acquire51% shares of Zhongshan Ganghang Enterprise Group Co., Ltd with RMB 484,500,000.00. The investment agreement has not been signed up to 30 June 2018.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIII) OTHER SIGNIFICANT EVENTS - continued
3. Segment reporting
(1) Basis for determining and accounting treatments of reporting segments
Subject to the Group's in-house infrastructure, management requirements and internal reporting system, the operation businesses of the Group are classified into four business segments. The Group's management periodically evaluates the operating results of these segments to make decisions about resources to be allocated to the segments and assess their performance. On the basis of such business segments, the Group determined three reporting segments including load and unload services, trailer and tugboat business, agency services and other segments, which are classified based on the nature of business. Major products and services delivered or provided by each of the reporting segments are load and unload services, trailer and tugboat business, agency services and other segments.
Segment information is disclosed in accordance with the accounting policies and measurement standards adopted by each segment when reporting to management. The measurement basis is consistent with the accounting and measurement basis in the preparation of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIII) OTHER SIGNIFICANT EVENTS - continued
3. Segment reporting - continued
(2) Segment financial information
Unit: RMB
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Load and unload services||||Trailer and tugboat business||||Agency and other services||||Unappropriated items||||Inter-segment deduction||||Total|||
|||||||||||Closingbalance||||||||||||||||
||||Closing balance||Opening balance||Closing balance||Opening balance||||Opening balance||Closing balance||Opening balance||Closing balance||Opening balance||Closing balance||Opening balance|
|Operating income||-||-||-||-||-||-||-||-||-||-||-||-||
|Re|evenue arising from|1,177,348,851.72||1,112,426,893.42||55,275,519.87||49,878,666.71||13,511,144.75||14,345,457.86||-||-||-||-||1,246,135,516.34||1,176,651,017.99||
||xternal transactions|||||||||||||||||||||||||
|Rin|evenue arising from|16,000.02||-||46,168,511.73||33,158,187.84||56,700.00||-||-||-||(46,241,211.75)||(33,158,187.84)||-||-||
||ter-segment transactions|||||||||||||||||||||||||
|Tin|otal segment operating|1,177,364,851.74||1,112,426,893.42||101,444,031.60||83,036,854.55||13,567,844.75||14,345,457.86||-||-||(46,241,211.75)||(33,158,187.84)||1,246,135,516.34||1,176,651,017.99||
||come|||||||||||||||||||||||||
|R|econciling items:|||||||||||||||||||||||||
|||||||||||||||||||||||1,246,135,516.34||1,176,651,017.99||
|O|perating Income in the financial statements|||||||||||||||||||||||||
|Operating cost||632,910,552.39||643,982,482.12||72,581,612.26||61,369,223.59||9,872,915.06||10,551,079.86||-||-||(46,225,211.73)||(33,158,187.84)||669,139,867.98||682,744,597.73||
|Segment operating profits||544,454,299.35||468,444,411.30||28,862,419.34||21,667,630.96||3,694,929.69||3,794,378.00||-||-||(16,000.02)||-||576,995,648.36||493,906,420.26||
|Reconciling items:||||||||||||||||||||||||||
|Business taxes and levies||6,099,891.64||5,538,555.52||76,166.38||108,304.02||4,934.31||9,377.58||-||-||-||720,507.38||6,180,992.33||6,376,744.50||
|Administrative expenses||76,940,865.83||57,716,135.62||6,707,646.04||5,921,650.84||2,628,805.64||2,375,212.07||1,375,191.26||11,895,037.75||(16,000.02)||-||87,636,508.75||77,908,036.28||
|Financial expenses||19,767,606.32||15,926,515.86||(771,164.41)||(762,020.47)||(106,478.82)||198,656.84||(1,020,860.21)||(2,088,377.10)||-||-||17,869,102.88||13,274,775.13||
|Ias|mpairment losses of|360,407.86||(1,877,571.78)||-||(197,700.00)||-||-||-||-||-||-||360,407.86||(2,075,271.78)||
||sets|||||||||||||||||||||||||
|Investment Income||(245,876.96)||(23,324.88)||-||-||-||-||80,372,242.68||69,509,957.45||(26,656,528.58)||(23,193,786.97)||53,469,837.14||46,292,845.60||
|Gains on disposal of assets||19,445.08||293,053.57||-||-||257.30||-||-||-||-||-||19,702.38||293,053.57||
|Other income||718,801.14||-||250,439.61||-||-||-||-||-||-||-||969,240.75||-||
|Operating profit||441,777,896.96||391,410,504.77||23,100,210.94||16,597,396.57||1,167,925.86||1,211,131.51||80,017,911.63||59,703,296.80||(26,656,528.58)||(23,914,294.35)||519,407,416.81||445,008,035.30||
|Non-operating income||2,902,652.25||2,215,207.16||-||111,358.31||-||-||-||-||-||-||2,902,652.25||2,326,565.47||
|Non-operating expenses||996,956.81||285,372.77||2,452,969.88||518,267.96||-||-||-||-||-||-||3,449,926.69||803,640.73||
|Gross profit||443,683,592.40||393,340,339.16||20,647,241.06||16,190,486.92||1,167,925.86||1,211,131.51||80,017,911.63||59,703,296.80||(26,656,528.58)||(23,914,294.35)||518,860,142.37||446,530,960.04||
|Income tax expenses||80,411,213.08||67,512,961.06||5,775,110.53||4,047,621.74||45,627.74||63,069.75||(10,747,279.62)||1,236,486.89||-||-||75,484,671.73||72,860,139.44||
|Net profit||363,272,379.32||325,827,378.10||14,872,130.53||12,142,865.18||1,122,298.12||1,148,061.76||90,765,191.25||58,466,809.91||(26,656,528.58)||(23,914,294.35)||443,375,470.64||373,670,820.60||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIII) OTHER SIGNIFICANT EVENTS - continued
3. Segment reporting - continued
(2) Segment financial information - continued
Unit: RMB
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Load and unload services||||Trailer and tugboat business||||Agency and other services||||Unappropriated items||||Inter-segment deduction||||Total|||
||||||||||||Closing||Opening|||||||||||||
||||Closing balance||Opening balance||Closing balance||Opening balance||balance||balance||Closing balance||Opening balance||Closing balance||Opening balance||Closing balance||Opening balance|
|Total segment assets||8,375,089,616.74||9,456,922,743.07||224,644,743.98||214,437,576.01||25,811,105.67||23,106,697.18||1,782,061,717.39||1,902,062,576.76||(3,379,021,049.92)||(3,650,854,683.15)||7,028,586,133.86||7,945,674,909.87||
|Ts|otal assets in the financial|8,375,089,616.74||9,456,922,743.07||224,644,743.98||214,437,576.01||25,811,105.67||23,106,697.18||1,782,061,717.39||1,902,062,576.76||(3,379,021,049.92)||(3,650,854,683.15)||7,028,586,133.86||7,945,674,909.87||
||tatements|||||||||||||||||||||||||
|T|otal segment liabilities|3,399,354,178.13||2,629,864,780.38||124,778,401.72||117,431,814.55||13,504,438.44||12,669,458.57||17,525,559.98||13,157,616.00||(1,823,621,593.50)||(1,337,347,193.03)||1,731,540,984.77||1,435,776,476.47||
|Tfi|otal liabilities in the|3,399,354,178.13||2,629,864,780.38||124,778,401.72||117,431,814.55||13,504,438.44||12,669,458.57||17,525,559.98||13,157,616.00||(1,823,621,593.50)||(1,337,347,193.03)||1,731,540,984.77||1,435,776,476.47||
||nancial statements|||||||||||||||||||||||||
|Si|upplementary|||||||||||||||||||||||||
||nformation|||||||||||||||||||||||||
|Depreciation||130,917,951.86||130,141,238.43||6,032,217.54||5,709,761.90||6,668.82||14,868.76||-||-||||||136,956,838.22||135,865,869.09||
|Amortization||25,262,343.20||26,354,570.06||-||-||||||-||-||||||25,262,343.20||26,354,570.06||
|Interest income||(21,439,281.37)||(18,935,134.52)||(772,040.01)||(762,901.07)||(9,393.39)||(6,467.63)||-||(110,320.50)||16,670,809.62||14,924,056.14||(5,549,905.15)||(4,890,767.58)||
|Interest expense||27,520,032.58||26,733,360.56||-||-||||||-||-||(16,670,809.62)||(14,924,056.14)||10,849,222.96||11,809,304.42||
|Ilu|nvestment income from|-||-||-||-||-||-||45,680,862.14||36,875,845.60||||||45,680,862.14||36,875,845.60||
||ong-term equity investment|||||||||||||||||||||||||
||nder equity method|||||||||||||||||||||||||
|Lim|ong-term equity|-||-||-||-||||-||1,561,072,828.11||1,134,591,093.41||||||||||
||nvestmentunder equity|||||||||||||||||||||||||
||ethod|||||||||||||||||||||||||
|Nti|on-current assets other|4,530,269,329.00||5,538,482,819.28||106,308,261.99||117,493,640.22||37,396.16||84,470.81||153,386,000.40||154,378,000.40||(158,565,045.18)||(159,384,011.80)||4,631,435,942.37||5,651,054,918.91||
||han long-term equity|||||||||||||||||||||||||
||nvestment|||||||||||||||||||||||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIII) OTHER SIGNIFICANT EVENTS - continued
3. Segment reporting - continued
(3) Segment revenue from external transactions by source and non-current assets by geographical location
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Revenue from external transactions with domestic customers|1,234,732,332.50||1,164,523,661.41||
|Revenue from external transactions with Hong Kong|11,403,183.84||12,127,356.58||
|Total|1,246,135,516.34||1,176,651,017.99||

 Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Non-current assets sourced from Mainland of PRC|4,387,973,511.00||5,630,189,733.15||
|Non-current assets sourced from Hong Kong|75.48||1,336.50||
|Total|4,474,219,033.48||5,630,191,069.65||

 (4) Degree of reliance on major customers
The total operating income derived from the top five clients of the Group is RMB449,200,611.10, occupying36.05% of the Group's totalo perating income.
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS 1.Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: RMB
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Closing balance||||||||||Opening balance|||||||||
||||Carryingamount||||Bad debt provision||||||Carrying amount||||Bad debt provision|||||
||||||Proportion||||Proportion||||||Proportion||||Proportion|||
||Category||Amount||(%)||Amount||(%)||Book value||Amount||(%)||Amount||(%)||Book value|
|rispai|Accounts|-||-||-||-||-||-||-||-||-||-||
||eceivable that are|||||||||||||||||||||
||ndividually|||||||||||||||||||||
||ignificant and for|||||||||||||||||||||
||which bad debt|||||||||||||||||||||
||rovision has been|||||||||||||||||||||
||ssessed|||||||||||||||||||||
||ndividually|||||||||||||||||||||
||Accounts receivable for which bad debt provision has been assessed by credit risk port folios|||||||||||||||||||||
|P|ortfolio1|3,493,060.71||14.92||-||-||3,493,060.71||3,172,906.66||24.43||-||-||3,172,906.66||
|P|ortfolio2|19,925,265.42||85.08||-||-||19,925,265.42||9,814,488.18||75.57||-||-||9,814,488.18||
|Sp|ubtotal of|23,418,326.13||100.00||-||-||23,418,326.13||12,987,394.84||100.00||-||-||12,987,394.84||
||ortfolios|||||||||||||||||||||
|rnspai|Accounts|-||-||-||-||-||-||-||-||-||-||
||eceivable that are|||||||||||||||||||||
||ot individually|||||||||||||||||||||
||ignificant but for|||||||||||||||||||||
||which bad debt|||||||||||||||||||||
||rovision has been|||||||||||||||||||||
||ssessed|||||||||||||||||||||
||ndividually|||||||||||||||||||||
||Total|23,418,326.13||100.00||-||-||23,418,326.13||12,987,394.84||100.00||-||-||12,987,394.84||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
1. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued
Accounts receivable portfolios for which bad debt provision has been assessed using the aging analysis approach:
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Closing balance||||||||Opening balance|||||
||||||||||||||Proportion(%)|||
||||Carrying||Bad debt||Proportion|||||Bad debtprovision||Proportion||
||Aging||amount||provision||(%)||Book value||Carrying amount|||(%)|Book value|
|W|ithin1year|19,925,265.42||-||-||19,925,265.42||9,814,488.18||-|-||9,814,488.18|

 (2) Top five balances of accounts receivable classified by debtor
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||||Proportion of the|Closingbalance ofprovision|
|Name of||Relationship with the||||amount to the total||
|customer||Company||Closing balance||accountsreceivable (%)||
|Customer F|Third party with transactions||8,434,034.37||36.01||-|
|Customer G|Third party with transactions||3,125,616.85||13.35||-|
|Customer H|Third party with transactions||2,850,327.01||12.17||-|
|Customer I|Third party with transactions||1,437,753.68||6.14||-|
|Customer J|Third party with transactions||1,290,839.25||5.51||-|
|Total|||17,138,571.16||73.18||-|

 2. Other receivables
(1) Disclosure of other receivables by categories
Unit: RMB
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Closing balance||||||||||Opening balance||||||||
|||Carrying amount||||Baddebtprovision||||||Carrying amount|||Bad debt provision|||Book value||
||||||||||||||Proportion(%)|||||||
|||||Proport||||Proport|||||||||Proporti|||
|Category||Amount||ion (%)||Amount||ion (%)||Book value||Amount|||Amount||on (%)||Book value|
|Other|-||-||-||-||-||-||-|-||-||-||
|receivables that||||||||||||||||||||
|are individually||||||||||||||||||||
|significant and||||||||||||||||||||
|for which bad||||||||||||||||||||
|debt provision||||||||||||||||||||
|has been||||||||||||||||||||
|assessed||||||||||||||||||||
|individually||||||||||||||||||||
|Other receivables for which bad debt provision has been assessed by credit risk portfolios||||||||||||||||||||
|Portfolio 1|412,025,217.06||99.59||-||-||412,025,217.06||582,640,769.47||99.86|-||-||582,640,769.47||
|Portfolio 2|1,709,870.35||0.41||383,456.60||22.43||1,326,413.75||833,646.82||0.14|383,456.60||46.00||450,190.22||
|Subtotal of|413,735,087.41||100.00||383,456.60||0.09||413,351,630.81||583,474,416.29||100.00|383,456.60||0.07||583,090,959.69||
|portfolios||||||||||||||||||||
|Other|-||-||-||-||-||-||-|-||-||-||
|receivables that||||||||||||||||||||
|are not||||||||||||||||||||
|individually||||||||||||||||||||
|significant but||||||||||||||||||||
|for which bad||||||||||||||||||||
|debt provision||||||||||||||||||||
|has been||||||||||||||||||||
|assessed||||||||||||||||||||
|individually||||||||||||||||||||
|Total|413,735,087.41||100.00||383,456.60||0.09||413,351,630.81||583,474,416.29||100.00|383,456.60||0.07||583,090,959.69||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
2. Other receivables - continued
(1) Disclosure of other receivables by categories: - continued
Other receivables portfolios for which bad debt provision has been assessed using the aging analysis
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Closingbalance|||||||Opening balance||||||
||||Carrying|Bad debt||Proportion(%)||||Carrying||Bad debt||Proportion||
||Aging||amount|provision||||Book value||amount||provision||(%)|Book value|
||Within 1 year|1,326,413.75||-|-||1,326,413.75||450,190.22||-||-||450,190.22|
|yey|More than 1|-||-|-||-||-||-||-||-|
||ear but not|||||||||||||||
||xceeding 2|||||||||||||||
||ears|||||||||||||||
|yey|More than 2|-||-|-||-||-||-||-||-|
||ears but not|||||||||||||||
||xceeding 3|||||||||||||||
||ears|||||||||||||||
|||383,456.60||383,456.60|100.00||-||383,456.60||383,456.60||100.00||-|
|y|More than 3|||||||||||||||
||ears|||||||||||||||
|T|otal|1,709,870.35||383,456.60|22.43||1,326,413.75||833,646.82||383,456.60||46.00||450,190.22|

 (2) Disclosure of other receivables by nature
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Temporarypayments|668,146.66|4,360,323.59|
|Deposits|68,570.00|1,590,884.41|
|Others|412,998,370.75|577,523,208.29|
|Including: amounts due from subsidiaries|410,546,889.69|577,067,880.47|
|Total|413,735,087.41|583,474,416.29|

 (3) Top five balances of other receivables classified by debtor
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of||
|||||the amount to|Closing|
|||||the total|balance of|
|||||accounts|bad debt|
|Name of entity|Nature of the fund|Amount|Aging|receivable(%)|provision|
|DGT|Loan to subsidiaries|215,500,000.00|Within 1 year|52.08|-|
|DGW|Loan to subsidiaries|191,013,229.40|Within 1 year|46.17|-|
|Chiwan Wharf Holdings|Temporary paymentdue from subsidiaries|2,922,707.07|More than 3years|0.71|-|
|(Hong Kong) Limited||||||
||Deposits|1,022,760.39|More than 3years|0.25|-|
|Nanshan Group||||||
||Temporary paymentdue from subsidiaries|656,104.70|Within 1 year|0.16|-|
|CCT||||||
|Total||411,114,801.56||99.37||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
3. Long-terme quity investments
Unit: RMB
||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Changes||||||||||||||||||||
||||||||||||Reconciling|e|||||||||||||
||||||||||||items from|||||Cash dividends||||||||Closing|
||||||||||Investment||other|||||or profits||||||||balance of|
||||||||||income under||comprehensiv|||Other equity||announced of||Provision for||||||provision for|
||Investees||Opening balance||Increase||Decrease||equity method||income|||movements||issuance||impairment||Others||Closing balance||impairment|
|I. Subsidiaries|||||||||||||||||||||||||
|Shenzhen Chiwan International Freight Agency Co., Ltd||5,500,000.00||-||-||N/A||N/A|||N/A||N/A||-||-||5,500,000.00||-||
|CHCC||250,920,000.00||-||-||N/A||N/A|||N/A||N/A||-||-||250,920,000.00||-||
|Shenzhen Chiwan Transportation Co.,Ltd||7,000,000.00||-||-||N/A||N/A|||N/A||N/A||-||-||7,000,000.00||-||
|Chiwan Wharf Holdings (Hong Kong) Limited||1,070,000.00||-||-||N/A||N/A|||N/A||N/A||-||-||1,070,000.00||-||
|Shenzhen Chiwan Tugboat Co.,Ltd||24,000,000.00||-||-||N/A||N/A|||N/A||N/A||-||-||24,000,000.00||-||
|CCT||421,023,199.85||-||-||N/A||N/A|||N/A||N/A||-||-||421,023,199.85||-||
|DGW||186,525,000.00||-||-||N/A||N/A|||N/A||N/A||-||-||186,525,000.00||-||
|DGT||175,000,000.00||-||-||N/A||N/A|||N/A||N/A||-||-||175,000,000.00||-||
|||1,051,789.43||-||-||N/A||N/A|||N/A||N/A||-||-||1,051,789.43||-||
|C|hiwan Shipping (Hong Kong) Limited||||||||||||||||||||||||
|Subtotal||1,072,089,989.28||-||-|||||||||||-||-||1,072,089,989.28||-||
|II. Associates|||||||||||||||||||||||-||
|CT|hina Merchants Holdings (International) Information|16,875,997.65||-||-||1,563,300.00||-|||-||-||-||-||18,439,297.65||-||
||echnology Co., Ltd||||||||||||||||||||||||
|||343,318,551.85||-||-||9,848,000.00||-|||-||-||-||-||353,166,551.85||-||
|C|MBL||||||||||||||||||||||||
|Subtotal||360,194,549.50||-||-||11,411,300.00||-|||-||-||-||-||371,605,849.50||-||
|III. Jointventures|||||||||||||||||||||||-||
|COHA (Laizhou)||783,668,303.84||-||-||26,216,000.00||-|||-||38,562,004.82||-||-||771,322,299.02||-||
|Total||2,215,952,842.62||-||-||37,627,300.00||-|||-||38,562,004.82||-||-||2,215,018,137.80||-||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
4. Operating income and operating costs
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Accumulated amount for the period||||Accumulated amounts for the prior period||
|Item||Income||Cost||Income|Cost|
|Principal operating|106,838,899.78||66,399,384.51||103,342,484.62|||
|Other operating|12,584,077.69||504,701.81||16,693,852.72|||
|Total|119,422,977.47||66,904,086.32||120,036,337.34|||

 5. Investment income
Details of investment income
Unit:RMB
||||
|-|-|-|
|Item|Accumulated amount for|Accumulated amounts for|
||the period|the prior period|
|Income from long-term equity investments under cost method|37,627,300.00|34,161,170.47|
|Income from long-term equity investments under equity method|7,788,975.00|-|
|Investment income on available-for-sale financial assets, etc.|-|9,417,000.00|
|Total|45,416,275.00|43,578,170.47|

 6. Related party transactions
(1) Provision and receipt of services
Unit:RMB
||||||
|-|-|-|-|-|
|||Pricing and decision-|||
|||making procedures of|Accumulated|Accumulated|
||Content of related party|related party|amount for the|amounts for the prior|
||transaction|transactions|period|period|
|Receipt of services:|||||
|Chiwan Property|Property management service|Negotiation|134,295.36|175,675.19|
|Chiwan Property|Property management service|Negotiation|116,416.99|416,694.34|
||Construction managementservice|Negotiation|92,371.53|145,848.28|
|Haiqin Engineering|||||
|China Merchants Holdings (International)|Technical service fee|Negotiation|30,188.70|63,584.93|
|Information Technology Co., Ltd|||||
|Chiwan Shipping (Hong Kong) Limited|Agency service|Negotiation|-|461,799.81|
|Haixing|Load and unload service|Negotiation|-|47,518.00|
|Shenzhen Chiwan International Freight|Agency service|Negotiation|-|13,007.98|
|Agency Co., Ltd|||||
|Shenzhen Chiwan Tugboat Co., Ltd|Transportation services|Negotiation|-|12,166.04|
|Total|||373,272.58|1,336,294.57|
|Rendering of services:|||||
|DGW|Labor dispatch|Negotiation|4,659,859.61|5,189,549.19|
|DGT|Labor dispatch|Negotiation|3,792,108.97|3,953,940.28|
|COHA (Laizhou)|Labor dispatch|Negotiation|167,696.72|-|
|COFCO-CMG|Load and unload service|Negotiation|-|627,197.62|
|CMSA|Port administration|Negotiation|-|24,659.43|
|Total|||8,619,665.30|9,795,346.52|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
6. Related party transactions - continued
(2) Leases with related parties
The Company as the lessee:
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and decision-|||
||Type of leased|making procedures of|Lease payment recognized|Lease payment recognized|
|Name of lessor|assets|related party transactions|in the current period|in the previous year|
||Land,Officeandpackingyard|Negotiation|3,339,797.62|4,165,980.04|
|Nanshan Group|||||
|Malai Warehouse|Office|Negotiation|2,234,022.78|2,104,514.22|
|Chiwan Base|Office|Negotiation|803,444.01|772,310.94|
|China Merchants|Office|Negotiation|475,398.88|-|
|Shangzhi|||||
|Haixing|Warehouse|Negotiation|238,095.25|-|
|Total|||,,||

 7. Amounts due from/to related parties
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Related parties||Closing balance||Opening balance|
|Cash and bank|CMFC||155,538,598.60||43,322,030.86||
|balances|CMB||573,885.94||150,359,313.40||
||CDFC||-||1,192,728.52||
||Total||156,112,484.54||194,874,072.78||
|Accounts|DGW||2,074,183.33||1,937,469.76||
|receivable|DGT||1,418,877.38||1,235,436.90||
||Total||3,493,060.71||3,172,906.66||
|Other|DGT||215,500,000.00||259,375,000.00||
|receivables|DGW||191,013,229.40||222,692,880.47||
||Chiwan Wharf Holdings (Hong Kong) Limited||2,922,707.07||2,886,525.88||
||CCT||656,104.70||656,104.70||
||CHCC||310,750.14||386,103.56||
||China Merchants Shangzhi||167,700.40||199,779.60||
||Shenzhen Chiwan Tugboat Co., Ltd||105,827.93||-||
||Hinwin Development Limited||38,270.45||38,270.45||
||Shenzhen Mawan Terminals Co., Ltd.||-||95,000,000.00||
||Nanshan Group||1,022,760.39||1,022,760.39||
||Chiwan Base||135,621.91||280,049.31||
||Chiwan Property||150.00||150.00||
||Total||411,873,122.39||582,537,624.36||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2018
(XIV) NOTES TO THE KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
7. Amounts due from/to related parties - continued
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Related parties||Closing balance||Opening balance|
|Long-term receivables|Chiwan Wharf Holdings (Hong Kong) Limited||11,004,284.75||11,004,284.75||
|Accounts payable|Nanshan Group||3,302,785.56||3,784,069.48||
||Xuqin||414,404.35||513,673.35||
||Haixing||-||250,000.00||
||Total||3,717,189.91||4,547,742.83||
|Interests payable|CHCC||3,268,376.71||1,542,500.00||
||CMFC||2,256,345.00||-||
||Shenzhen Chiwan Transportation Co., Ltd||670,853.45||445,086.19||
||Shenzhen Chiwan Tugboat Co., Ltd||318,090.42||165,131.27||
||CCT||-||1,855,000.00||
||Shenzhen Mawan Wharf Co., Ltd.||-||323,797.50||
||Total||6,513,665.58||4,331,514.96||
||Chiwan Wharf Holdings (Hong Kong) Limited||37,608,540.65||37,608,540.65||
|Dividends payable|||||||
|Other payables|CHCC||230,829,408.03||268,600,179.30||
||Hinwin Development Limited||154,000,000.00||154,000,000.00||
||Shenzhen Chiwan Transportation Co., Ltd||39,783,255.42||47,236,691.69||
||Shenzhen Chiwan TugboatCo., Ltd||31,565,218.79||37,644,370.44||
||DGW||14,686,061.65||14,073,224.80||
||DGT||8,784,893.57||9,951,537.15||
||CCT||5,191,748.85||212,442,335.07||
||Shenzhen Chiwan International FreightAgencyCo., Ltd||1,321,499.05||1,740,733.05||
||Chiwan Wharf Holdings (Hong Kong) Limited||1,030,885.81||1,022,082.14||
||Haiqin Engineering||97,913.82||-||
||Chiwan Shipping (Hong Kong) Limited||82,851.10||538,047.40||
||China Merchants Holdings (International)Information TechnologyCo., Ltd||6,400.00||6,400.00||
||ShenzhenMawanWharfCo.,Ltd.||-||73,800,000.00||
||Shenzhen Mawan Terminals Co., Ltd.||-||672,562.50||
||Xuqin||44,497.40||210,869.00||
||Nanshan Group||325,275.11||77,863.00||
||Chiwan Property||41,702.70||6.40||
||Chiwan Base||139,354.40||-||
||Total||487,930,965.70||822,016,901.94||
|Long-term payables|Chiwan Wharf Holdings (Hong Kong) Limited||150,386,000.00||150,098,000.00||

Note: The Company collectively manages and coordinates the use of the capital within the Group.
The subsidiaries deposit their funds with the Company, and apply for fund when needed.
The Company collects fund usage expenses based on the actual financing costs incurred.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2018
1. BREAKDOWN OF EXTRAORDINARY GAINS AND LOSSES
Unit: RMB
||||
|-|-|-|
|Item|Amounts|Remarks|
|Gains or losses on disposal of non-current assets|19,702.38||
|Tax refunds or reductions with ultra vires approval or without official approval|-||
|documents|||
|Government grants recognized in profit or loss (except for grants that are closely|969,240.75||
|related to the Company's business and are in amounts and quantities fixed in|||
|accordance with the national standard)|||
|Money lending income earned from non-financial institutions in profit or loss|-||
|The excess of attributable fair value of identifiable net assets over the|-||
|consideration paid for subsidiaries, associates and joint ventures|||
|Gains or losses on exchange of non-monetary assets|-||
|Gains or losses on entrusted investments or assets management|-||
|Provision of impairment losses for each asset due to force majeure, e.g. natural|-||
|disasters|||
|Gains or losses on debt restructuring|-||
|Business restructuring expenses, e.g., expenditure for layoff of employees,|-||
|integration expenses, etc.|||
|Gains or losses relating to the unfair portion in transactions with unfair transaction|-||
|price|||
|Net profit or loss of subsidiaries recognized as a result of business combination of|-||
|enterprises under common control from the beginning of the period up to the|||
|business combination date (Note)|||
|Gains or losses arising from contingencies other than those related to normal|-||
|operating business|||
|Gains or losses on changes in the fair value of financial assets and financial|-||
|liabilities held for trading and investment income on disposal of held-for-trading|||
|financial assets, held-for-trading financial liabilities and available-for-sale|||
|financial assets, other than the effective hedging activities relating to normal|||
|operating business|||
|Reversal of provision for accounts receivable that are tested for impairment losses|-||
|individually|||
|Gains or losses on entrusted loans|-||
|Gains or losses on changes in the fair value of investment properties that are|-||
|subsequently measured using the fair value model|||
|Effects on profit or loss of one-off adjustment to profit or loss for the period|-||
|according to the requirements by tax laws and accounting laws and regulations|||
|Custodian fees earned from entrusted operation|-||
|Other non-operating income or expenses other than above|(547,274.44)||
|Other profit or loss that meets the definition of non-recurring profit or loss|-||
|Tax effects|21,177.58||
|Effects of minority interest (after tax)|(1,028,463.84)||
|Total|(565,617.57)||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION
FOR THE SIX MONTHS ENDED 30 JUNE 2018
2. RETURN ON NET ASSETS AND EARNINGS PERSHARE ("EPS")
The return on net assets and EPS have been prepared by Shenzhen Chiwan Wharf Co., Ltd. in accordance with Information Disclosure and Presentation Rules for Companies Making Public Offering No. 9 - Calculation and Disclosure of Return on Net Assets and Earnings per Share (revised in 2010) issued by China Securities Regulatory Commission.
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Weighted average||EPS|||
|||return on net assets|||||
|Profits incurred in the current period||(%)||Basic ESP||Diluted EPS|
|Net profit for the current period attributable to ordinary|6.786||0.490||0.490||
|shareholders|||||||
|Net profit attributable to ordinary shareholders after|6.799||0.491||0.491||
|deducting extraordinary gains and losses|||||||