The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
2016 ANNUAL REPORT
Disclosed on 28 March 2017
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section I. Important Statements, Contents& Terms
The Board of Directors, the Supervisory Board as well as the directors, supervisors and senior management staff of Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred to as the “Company”) hereby warrant that this Report is factual, accurate and complete without any false information, misleading statements or material omissions. And they shall be jointly and severally liable forthat.
Board Chairman Shi Wei, Chief Financial Officer Zhang Fang and Financial Manager Li Xiaopeng hereby guarantee thefactuality, accuracy and completeness ofthe Financial Report in thisReport. This Report has been reviewed and approved by all directors at the 7th Meeting of the 8th Board of Directors.
Possible risks faced by the Company and countermeasures have been explained in “Section IV. Performance Discussion and Analysis” in this Report, which investors are kindly reminded to pay attention to. Any forward-looking statement such as those involving future plans or development strategies in this Report shall not be considered as virtual promises of the Company to investors. And investorsare kindly reminded to payattention to possiblerisks.
Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn have been designated by the Company for information disclosure. And all information about the Company shall be subject towhat’s disclosed on the aforesaid media. Investors are kindly reminded to pay attention to possible risks.
TheCompany’s preliminary plan for profit distribution upon the review and approval at the board meeting: Based on the total shares of 644,763,730, a cash dividend of RMB4.96 (tax included) will be distributed to all the shareholders for every 10 shares that they hold. No bonus shares will be granted and nocapital reserve willbe turned intoshare capital.
This Report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chineseversion shall prevail.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Contents
Section I. Important Statements, Contents& Terms......................................................1 Section II. Company Profile& Financial Highlights.....................................................4 Section III. Business Highlights.....................................................................................8 Section IV. Performance Discussion andAnalysis.......................................................10 Section V. Significant Events........................................................................................25 Section VI. Share Changes& Particulars about Shareholders.....................................38 Section VII. Preference Shares.....................................................................................45 Section VIII. Directors, Supervisors, Senior Management Staff& Employees..........46 Section IX. Corporate Governance...............................................................................59 Section X. Corporate Bonds.........................................................................................74 Section XI.Auditor's Report (SeeAttached)................................................................75 Section XII. DocumentsAvailable for Reference........................................................76
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Terms
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|-|-|
|Term|Content|
|Company,theCompanyorChiwanWharf|ShenzhenChiwanWharfHoldingsLimited|
|CMG|ChinaMerchantsGroup|
|CMPort|ChinaMerchantsPortHoldingsCompanyLimited*|
|CNDGroup|ChinaNanshanDevelopment(Group)Inc.|
|MalaiStorage|ShenzhenMalaiStorageCo.,Ltd.|
|KFEL|KeenFieldEnterprisesLimited|
|CDF|ChinaDevelopmentFinanceCompanyLtd.|
|CCT|ChiwanContainerTerminalCo.,Ltd.(controlledsubsidiaryoftheCompany)|
|SASACoftheStateCouncil|State-OwnedAssetsSupervisionandAdministrationCommissionoftheStateCouncil|
|CSRC|ChinaSecuritiesRegulationCommission|
|ShenzhenCSRC|ShenzhenBureauofChinaSecuritiesRegulatoryCommission|
|SZSE|ShenzhenStockExchange|
|“TheCompanyLaw”|“TheCompanyLawofthePeople’sRepublicofChina”|
|“TheSecuritiesLaw”|“TheSecuritiesLawofthePeople’sRepublicofChina”|
|“TheArticlesofAssociation”|“TheArticlesofAssociationofShenzhenChiwanWharfHoldingsLimited”|
|“TheStockListingRules”|“TheStockListingRulesofShenzhenStockExchange”|
|Thecninfowebsite|www.cninfo.com.cn|

* China Merchants Holdings (International) Company Limited has officially changed its name to “ChinaMerchants Port Holdings Company Limited”on10August 2016.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section II. Company Profile& Financial Highlights
I. Company information
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|-|-|-|-|
|Stockabbr.|ChiwanWharfA,ChiwanWharfB|Stockcode|000022,200022|
|Stockexchange|ShenzhenStockExchange|||
|ChinesenameoftheCompany|深圳赤湾港航股份有限公司|||
|Abbr.oftheChinesenameoftheCompany|深赤湾|||
|EnglishnameoftheCompany(ifany)|ShenzhenChiwanWharfHoldingsLimited|||
|Abbr.oftheEnglishnameoftheCompany(ifany)|ChiwanWharf|||
|LegalrepresentativeoftheCompany|ShiWei|||
|Registeredaddress|8/F,ChiwanPetroleumBuilding,ZhaoshangStreet,NanshanDistrict,Shenzhen,PRC|||
|Zipcode|518067|||
|Officeaddress|8/F,ChiwanPetroleumBuilding,ZhaoshangStreet,NanshanDistrict,Shenzhen,PRC|||
|Zipcode|518067|||
|InternetwebsiteoftheCompany|http://www.szcwh.com|||
|Emailaddress|cwh@szcwh.com|||

II. Contact us
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|-|-|-|
||CompanySecretary|SecuritiesRepresentative|
|Name|WangYongli|HuJingjing&ChenDan|
|Contactaddress|8/F,ChiwanPetroleumBuilding,ZhaoshangStreet,NanshanDistrict,Shenzhen,PRC||
|Tel.|+86 75526694222|+86 75526694222|
|Fax|+86 75526684117|+86 75526684117|
|E-mail|cwh@szcwh.com|cwh@szcwh.com|

III. Aboutinformation disclosure andwhere thisReport is placed
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|-|-|
|NewspapersdesignatedbytheCompanyforinformationdisclosure|SecuritiesTimes,TaKungPao(HK)|
|InternetwebsitedesignatedbyCSRCfordisclosingthisReport|http://www.cninfo.com.cn|
|WherethisReportisplaced|CompanySecretary’sOffice|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited IV.Changes in theregistered information
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|Credibilitycode|91440300618832968J|
|Changesinmainbusinesssincegoingpublic(ifany)|Nochanges|
|Changesofcontrollingshareholder(ifany)|N/A|

V. Otherinformation
The CPAsfirm hired bytheCompany:
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|Name|DeloitteToucheTohmatsuCertifiedPublicAccountantsLLP|
|Officeaddress|30/F,222YanAnRoadEast,HuangpuDistrict,Shanghai,P.R.C.|
|Signingaccountants|LiWeihua,SuMin|

SponsorengagedbytheCompany to conduct sustained supervision during thereporting period□Applicable√ Inapplicable
Financial consultantengaged bytheCompany toconduct sustained supervision during thereporting period
□Applicable√ Inapplicable
VI.Accounting and financialhighlights
Does theCompany adjust retrospectively orrestate accounting dataof previous years due tochange ofthe accounting policyor correction ofany accounting error?
□Yes√ No
Unit:RMBYuan
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|-|-|-|-|-|
|Item|2016|2015|Increase/decreaseofcurrentyearoverlastyear|2014|
|Operatingrevenues|1,905,107,140.42|1,872,608,596.16|1.74%|1,804,766,176.31|
|Netprofitsattributabletoshareholdersoftheparent|532,376,492.97|527,751,492.42|0.88%|417,594,271.33|
|Netprofitsattributabletoshareholdersoftheparentbeforeextraordinarygainsandlosses|530,615,980.15|528,043,530.88|0.49%|417,628,589.12|
|Netcashflowsfromoperatingactivities|827,754,904.11|977,850,737.45|-15.35%|818,315,147.74|
|BasicEPS(RMBYuan/share)|0.826|0.819|0.85%|0.648|
|DilutedEPS(RMBYuan/share)|0.826|0.819|0.85%|0.648|
|WeightedaverageROE(%)|11.64%|12.34%|-0.70%|10.36%|
|Item|Asat31Dec.2016|Asat31Dec.2015|Increase/decreaseofcurrentyear-endthanlastyear-end|Asat31Dec.2014|
|Totalassets|6,620,476,709.79|6,913,772,876.99|-4.24%|6,935,824,199.68|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
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|NetassetsattributabletoshareholdersoftheCompany|4,709,815,552.89|4,439,600,537.05|6.09%|4,115,298,831.59|

VII. Differences between accounting data under domesticandoverseas accounting standards 1. Differences of net profit and net assets disclosed in financial reports prepared under international andChineseaccounting standards
No suchdifferences
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chineseaccounting standards
No suchdifferences
VIII. Financialhighlights byquarter
Unit:RMBYuan
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|-|-|-|-|-|
|Item|Q1|Q2|Q3|Q4|
|Operatingrevenues|441,414,712.95|463,394,939.29|513,538,393.69|486,759,094.49|
|Netprofitsattributabletoshareholdersoftheparent|121,221,004.55|145,314,502.42|160,704,737.43|105,136,248.57|
|Netprofitsattributabletoshareholdersoftheparentbeforeextraordinarygainsandlosses|120,104,236.05|144,612,148.26|160,374,471.28|105,525,124.56|
|Netcashflowsfromoperatingactivities|101,594,145.81|267,063,097.99|204,666,194.32|254,431,465.99|

Indicate bytick mark whether there are anymaterial differences between thefinancial indicators above ortheirsummations and thosewhich have beendisclosed inquarterly orsemi-annual reports□Yes√ No
IX.Extraordinary gains andlosses
Unit:RMBYuan
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|-|-|-|-|-|
|Item|2016|2015|2014|Note|
|Profitorlossondisposalofnon-currentassets|-2,468,885.29|-748,062.06|-4,364,137.54||
|Governmentgrantsrecognizedinprofitorloss(exceptforgrantsthatarecloselyrelatedtotheCompany'sbusinessandareinamountsandquantitiesfixedinaccordancewiththenationalstandard)|1,046,444.12|934,144.81|2,489,528.50||
|Othernon-operatingincomeorexpensesotherthanabove|3,961,699.05|1,618,620.58|2,543,213.87||
|Less:Taxeffects|595,892.67|579,718.94|40,993.60||
|Effectsofminorityinterest(aftertax)|182,852.39|1,517,022.85|661,929.02||
|Total|1,760,512.82|-292,038.46|-34,317.79|--|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited The Company did notshift inthereporting period any extraordinary gain/lossitem as defined and listed in theExplanatory Announcement No. 1onInformation Disclosure forCompanies Offering Their Securities tothePublic—Extraordinary Gains and Losses to arecurrent gain/lossitem.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section III. Business Highlights
I. Main business during thereportingperiod
The Company is principally engaged in the handling, warehousing and transportation of containers and bulk cargoes, as well as the provision of related services. The Company has 6 container berths and 7 bulk cargo berths in Chiwan Wharf (Shenzhen), 3 container berths in Mawan Wharf (Shenzhen) and 5 bulk cargo berths in Machong Wharf (Dongguan). The Company also has an investment in Laizhou Wharfin Shandong Province.
In the reporting period, the global economy was in deep change, international trade remained sluggish and slow growth became an ordinary state for the port industry, urging faster transformation by upgrading and integration of port resources. As a regional hub for container and bulk cargo carriers, the Company enjoyed growing business results as well as a stable and improving market position.
II. Material changes in main assets
1.Material changes in main assets
□Applicable√ Inapplicable
2.Main assets overseas
□Applicable√ Inapplicable
III. Core competitiveness analysis
Upon more than 3 decades of development, the Company has gathered a pool of experienced professionals and an excellent managerial team, with its business management highly recognized by shareholders and clients. With stable client sources and efficient business process flows, the Company is considered a leader in the sector in terms of operating efficiency. As a mature listed port company inChina, theCompanyowns anexcellent brand andreputation inthe market.
Material changes as below intheCompany’s core competitiveness during thereporting period: 1. Container handling business: AR&D project of smart quayside handling has been set up and four quay cranes have been put into trial operation in May 2016. The project of broadening and dredging Tonggu Sea Route went into operation in Nov, which would create a water depth navigable for vessels around theclock in Shenzhen western portarea, achieving abottleneck-breaking result. 2. Bulk cargo handling business: In June 2016, State I of Machong Wharf II was granted the Acceptance Certificate of Completed Wharf Project by the Department of Transportation of Guangdong Province. In the same month, Machong Wharf obtained an administrative permit from Huangpu Customs to build bonded warehouses for public use with an area of 15,700㎡,which was
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited checked and accepted by the Customs. In Dec, the Technological transformation of Berth7# , Chiwan Port was completed.
These improvements in resource capacity will further increase theCompany’s competitiveness and provide guaranteefor itscontinuously stabledevelopment.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section IV. Performance Discussion and Analysis
I. Business review
In 2016, the global economy remained in deep change which varied markedly among different regions. Profound changes also happened with trade rules, production modes, industrial layout, international division of labor, currency systems, etc. China steadily pushed forward its supply-side structural reform and transformation and deepened its pilot free trade zone reform. Its economic growth further slowed down to6.7%, with the total import and export value down by0.9% from last year. With continuously sluggish global shipping, the domestic port industry also grew at a slow pace. Thecountry’s coastal ports above the designated size registered a cargo throughput of 8.08 billion metric tons, representing3.0% growth from last year, and a container throughput of 190 million TEU, up3.4% from the year earlier. Under such circumstances, main production and operation indicators of the Company for the reporting period all registered increase. To be specific, the Company achieved a cargo throughput of 67.8 million metric tons, a year-on-year increase of1.8%, which generated operating revenues of RMB1.91 billion, up1.7% from last year; total profits of RMB0.77 billion, up5.9% on a year-on-year basis; and net profits attributable to the Company (excluding subsidiaries)of RMB0.53 billion, representing a0.9%growth from theyear earlier. 1.Containerhandling business
Growth in the global container capacity significantly slowed down, but overcapacitywasn’t substantively improved. With lower earnings for shipping enterprises, the bankrupt of Hanjin Shipping, the 7th largest shipping company in the world shocked the shipping industry. The shipping alliances were on the verge of a reshuffle due to series of merging and reorganization events in the industry. In the reporting period, container throughput of main ports in South China declined by1.2% year on year, of which the data of Shenzhen port declined by1.0%. We strengthened business expansion, closely followed up the route adjustment caused by the alliance reshuffle, energetically explored qualified routes, leading to growth in both local and transit container handling. We handled 5.035 million TEU of containers, up5.8% on a year-on-year basis, accounting for21% of the Shenzhen port market, 1 percentage point higher than the same period of last year.
2.Bulkcargo handling business
Due to thegovernment’s structural reform of the supply front, as well as the market demand,China’s imports of grain and fertilizer both decreased sharply. We adopted a business strategy of working on both domestic and foreign trade. As a result, the considerable growth in the domestic grain and feedstuff throughput made up for the drop in the foreign counterpart, and our total grain and feedstuff throughput is still at a leading position in the Pearl River Delta. Meanwhile, despite a weak demand, we are still a leader in terms of fertilizer throughput, with the compound fertilizer imports handled accounting for around50% ofChina’s market. At the same time, we strengthened business expansion. Breakthroughs have been made in new business and the comprehensive logistics services based on the ports have continued to develop, making clients more dependent on us. In the reporting period, we achieved a bulk cargo throughput of 18.822 million tons, down2.4% from theyear earlier.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 3.Supporting services andinvestment management
Our supporting services of tow truck, tugboat, customs clearance, barge and the like went on smoothly, and gained goods. Meanwhile, our main investees such as China Overseas Harbour Affairs (Laizhou) Co., Ltd., and China Merchants Holdings (International) Information Technology Co., Ltd. achieved greatly improved business results, producing much higher returns on our investments from ayear earlier.
Business highlights oftheCompany for thepast three years are set out as follows:
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|Main business indicator|2016|2015|2014|
|Total throughput (thousand tons)|67,800|66,618|63,002|
|Among which:Containerthroughput (thousand TEU)|5,035|4,760|4,958|
|Bulk cargothroughput (thousand tons)|18,822|19,283|15,139|
|Hours charged fortowtrucks (thousand hours)|1,165|1,129|1,170|
|Hours charged for tugboats (hour)|32,530|34,098|28,642|

 In the reporting period, we continued to push forward lean management and innovation work, and emphasized on improving quality and efficiency. We adapted to the management requirements in new situations by sorting and optimizing management process, as well as revising and perfecting systems. We combined theory training with work practice, and strengthened the guiding function of data analysis. Through making use of interest technologies, we carried forward the fusion of production network, and theCompany’s informationization. We encouraged technique and process reform, and new technology application, focused on solving and improving issues in the front line of production, and accomplished multiple projects of technical innovation. We combined the main wharf business with supporting businesses, arranged the participation in multiple logistics links, explored and extended the logistics chain service in ports. We developed special management and control on key costs, reached the annual target on management and control, and realized the increase of operating profits. We also expanded financing channels for a better debt structure and reduced the loans to avoid exchange rate risk, which helped cut down our finance costs in a significant way.
II. Main business analysis
1.Overview
Changes in main financial indicators inthereporting period are as follows:
Unit:RMBYuan
||||||
|-|-|-|-|-|
|Item|2016|2015|+/-|Reason|
|Operatingrevenues|1,905,107,140.42|1,872,608,596.16|1.74%|-|
|Operatingcosts|1,050,465,880.51|1,002,715,909.05|4.76%|-|
|Administrativeexpenses|174,521,284.02|175,644,906.71|-0.64%|-|
|Financecosts|17,022,615.47|59,500,840.56|-71.39%|Decreaseinaveragebalanceofinterest-bearingdebtsandaverageloaninterest|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||||
|-|-|-|-|-|
|Netcashflowsfromoperatingactivities|827,754,904.11|977,850,737.45|-15.35%|-|

2.Revenues andcosts
(1) Breakdownof operating revenues
Unit:RMBYuan
|||||||
|-|-|-|-|-|-|
|Item|2016||2015||+/-|
||Amount|Inoperatingrevenues|Amount|Inoperatingrevenues||
|Operatingrevenues|1,905,107,140.42|100%|1,872,608,596.16|100%|1.74%|
|Bysegments||||||
|Loadandunloadservices|1,782,343,936.83|93.56%|1,747,972,945.00|93.34%|1.97%|
|Trailerandtugboatbusiness|158,782,168.60|8.33%|158,969,818.91|8.49%|-0.12%|
|Agencyandotherservices|29,384,718.03|1.54%|25,708,043.32|1.37%|14.30%|
|Inter-segmentdeduction|-65,403,683.04|-3.43%|-60,042,211.07|-3.21%|8.93%|
|Byareas||||||
|MainlandChina|1,886,725,592.26|99.04%|1,855,423,240.72|99.08%|1.69%|
|HongKong,China|18,381,548.16|0.96%|17,185,355.44|0.92%|6.96%|

(2) Segments, products or areas contributing over10%ofoperating revenues orprofit
Unit:RMBYuan
||||||||
|-|-|-|-|-|-|-|
|Item|Operatingrevenue|Operatingcost|Grossprofitmargin(%)|Operatingrevenue:+/-%fromlastyear|Operatingcost:+/-%fromlastyear|Grossprofitmargin:+/-%fromlastyear|
|Bysegments|||||||
|Loadandunloadservices|1,782,343,936.83|976,831,006.93|45.19%|1.97%|4.94%|-1.55%|
|Byareas|||||||
|MainlandChina|1,886,725,592.26|1,035,760,386.34|45.10%|1.69%|4.72%|-1.59%|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited (3) Productsales higherthanservice income
□Yes√ No
(4) Execution progress of majorsigned sales contracts inreporting period
□Applicable√ Inapplicable
(5) Breakdownof operating costs
By segments and products
Unit:RMBYuan
||||||||
|-|-|-|-|-|-|-|
|Segment|Item|2016||2015||+/-|
|||Amount|Inoperatingcosts|Amount|Inoperatingcosts||
|Loadandunloadservices|Loadandunloadservices|976,831,006.93|92.99%|930,887,674.04|92.84%|4.94%|
|Trailerandtugboatbusiness|Relatedroadtransportationandshipping|119,894,587.11|11.41%|118,198,934.43|11.79%|1.43%|
|Agencyandotherservices|Agency|19,108,936.15|1.82%|13,671,511.65|1.36%|39.77%|
|Inter-segmentdeduction||-65,368,649.68|-6.22%|-60,042,211.07|-5.99%|8.87%|
|Total||1,050,465,880.51|100.00%|1,002,715,909.05|100.00%|4.76%|

 (6) Changes inconsolidationscopeforreporting period
□Yes√ No
(7) Major changes inbusiness, products orservices inreporting period
□Applicable√ Inapplicable
(8) Main clients andsuppliers
Main clients
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|-|-|
|Salesincomefromtop5clients(RMBYuan)|1,053,730,861.13|
|Intotalsalesincomeoftheyear(%)|55.31%|
|Totalsalesincomefromrelatedpartiesamongtop5clientsasapercentageofthetotalsalesincomeoftheyear(%)|0%|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Information about top 5clients
|||||
|-|-|-|-|
|SerialNo.|Client|Salesincomegenerated(RMBYuan)|Intotalsalesincomeoftheyear(%)|
|1|ClientA|390,888,906.34|20.52%|
|2|ClientB|287,577,575.57|15.10%|
|3|ClientC|197,766,419.76|10.38%|
|4|ClientD|89,559,790.11|4.70%|
|5|ClientE|87,938,169.35|4.62%|
|Total|--|1,053,730,861.13|55.31%|

 Other information about themain clients
□Applicable√ Inapplicable
Main suppliers
|||
|-|-|
|Procurementfromtop5suppliers(RMBYuan)|295,502,508.27|
|Intotalprocurementoftheyear(%)|41.00%|
|Totalprocurementfromrelatedpartiesamongtop5suppliersasapercentageofthetotalprocurementoftheyear(%)|0%|

Information about top 5suppliers
|||||
|-|-|-|-|
|SerialNo.|Supplier|Procurement(RMBYuan)|Intotalprocurementoftheyear(%)|
|1|SupplierA|96,458,673.67|13.38%|
|2|SupplierB|60,759,336.04|8.43%|
|3|SupplierC|59,625,304.21|8.27%|
|4|SupplierD|43,829,203.50|6.08%|
|5|SupplierE|34,829,990.85|4.83%|
|Total|--|295,502,508.27|41.00%|

 Other information about themain suppliers
□Applicable√ Inapplicable
3.Expense
Unit: RMBYuan
||||||
|-|-|-|-|-|
|Item|2016|2015|+/-|Explanationofanysignificantchange|
|Administrativeexpenses|174,521,284.02|175,644,906.71|-0.64%|-|
|Financecosts|17,022,615.47|59,500,840.56|-71.39%|Decreaseinaveragebalanceofinterest-bearingdebtsandaverageloaninterest|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited4.R&D input
Chiwan Container Terminal Co., Ltd. (“CCT”), one of theCompany’s controlled subsidiaries, is a certified hi-tech enterprise. In light of its research on market needs and development trends in logistics, CCT plans to launchR&D projects focusing on “automatic hardware” and “intelligent software”.
The automatic hardware project of CCT will help increase working efficiency, reduce energy consumption, lower labor cost and improve safety. So far, the project has solved many technical problems that no one else in the world has ever done and entered Phase II, with realizing automatic vertical transport for all storage yards being its goal in the near future and materializing automation on most of the port operation being its long-term goal. This will greatly increase our working efficiency and help providemore efficient service forour clients.
The intelligent software project of CCT focuses on modern, intelligent, individualized and green logistics software for efficient, automatic operation to provide quick, convenient and high-efficient service for our clients. So far, all of our software systems are mature enough to perform in a quick and intelligent manner functions such as data collection, automatic control during the operation procedures and provision of fast and efficient service for clients. The era of internet is coming. We are planning to set up a sound internet of things to apply more automatic control on operation in the ports via intelligent software.
CCT uses hi-tech and intelligent software not only in automatic control, data control and client service, but also in green control as a response to thegovernment’s call so as to transform from a conventional wharf intoa modern logistics company.
Particulars aboutR&D input
|||||
|-|-|-|-|
|Item|2016|2015|+/-%|
|NumberofR&Dpersonnel|76|65|16.92%|
|R&Dpersonnelintotalemployees|5.37%|4.49%|0.88%|
|R&Dinput(RMBYuan)|28,215,328.71|23,311,082.47|21.04%|
|R&Dinputinoperatingrevenues|1.48%|1.24%|0.26%|
|CapitalizedR&Dinput(RMBYuan)|0|0||
|CapitalizedR&DinputintotalR&Dinput|0%|0%||

Reasons for any significant YoY change in the percentage of theR&D input in the operating revenues
□Applicable√ Inapplicable
Reason forany sharp variation inthe percentageof thecapitalizedR&D inputand rationale
□Applicable√ Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 5.Cash flows
Unit:RMBYuan
||||||
|-|-|-|-|-|
|Item|2016|2015|+/-|Reason|
|Subtotalofcashinflowsfromoperatingactivities|1,983,146,777.05|2,011,334,460.41|-1.40%|-|
|Subtotalofcashoutflowsfromoperatingactivities|1,155,391,872.94|1,033,483,722.96|11.80%|-|
|Netcashflowsfromoperatingactivities|827,754,904.11|977,850,737.45|-15.35%|-|
|Subtotalofcashinflowsfrominvestingactivities|81,664,692.15|153,116,503.91|-46.66%|SaleofequityinterestsinChinaDevelopmentFinancelastyear|
|Subtotalofcashoutflowsfrominvestingactivities|171,567,857.53|152,822,155.82|12.27%|-|
|Netcashflowsfrominvestingactivities|-89,903,165.38|294,348.09|-30,643.15%|PaymentforconstructionofgranariesinMachongWharfincurrentperiod;incomefromsellingequityinterestsinChinaDevelopmentFinancelastyear|
|Subtotalofcashinflowsfromfinancingactivities|950,000,000.00|933,885,679.50|1.73%|-|
|Subtotalofcashoutflowsfromfinancingactivities|1,956,089,056.07|1,706,368,356.34|14.63%|-|
|Netcashflowsfromfinancingactivities|-1,006,089,056.07|-772,482,676.84|-30.24%|Increaseddebtrepayment|
|Netincreaseincashandcashequivalents|-257,101,420.79|214,502,637.19|-219.86%|Decreaseinnetcashflowsfromoperatingandinvestingactivities,aswellasincreaseddebtrepayment|

Reason for any big difference between the net operating cash flow and the net profit for this reporting period
□Applicable√ Inapplicable
III. Non-core business analysis
Unit: RMBYuan
||||||
|-|-|-|-|-|
|Item|Amount|Intotalprofit(%)|Source/reason|Recurringornot|
|Investmentgains|120,483,875.42|15.63%|Profitfromjointly-runandassociatedcompanies|Yes|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||||
|-|-|-|-|-|
|Assetimpairment|4,689,573.88|0.61%|ImpairmentprovisionmadeonareceivablefromHanjinShipping|No|
|Non-operatingrevenues|5,695,583.80|0.74%|Disposalofnon-currentassets,governmentsubsidies,etc.|No|
|Non-operatingexpenses|3,156,325.92|0.41%|Disposalofnon-currentassets|No|

IV.Assets andliabilities
1.Major changes in assetcomposition
Unit:RMBYuan
||||||||
|-|-|-|-|-|-|-|
|Item|Asat31Dec.2016||Asat31Dec.2015||Proportionchange（%）|reasonformajorchange|
||Amount|Intotalassets(%)|Amount|Intotalassets(%)|||
|Monetaryfunds|426,036,702.87|6.44%|683,138,123.66|9.88%|-3.44%|Monetaryfundsdecreased38%fromtheopeningamountoftheyearmainlybecauseself-ownedfundswereusedtorepayinterest-bearingdebtsinthecurrentperiod|
|Accountsreceivable|173,934,496.63|2.63%|189,016,564.86|2.73%|-0.10%|-|
|Inventories|14,771,410.09|0.22%|17,300,307.66|0.25%|-0.03%|-|
|Investingrealestate|23,646,913.77|0.36%|26,747,795.38|0.39%|-0.03%|-|
|Long-termequityinvestment|1,490,427,656.53|22.51%|1,447,024,975.16|20.93%|1.58%|-|
|Fixedassets|3,036,813,842.54|45.87%|3,213,180,964.08|46.48%|-0.61%|-|
|Constructioninprogress|164,604,358.31|2.49%|22,222,084.78|0.32%|2.17%|Constructioninprogressincreased641%fromtheopeningamountoftheyearmainlybecauseofthepaymentforMachongWharf’sgranaryconstructionandChiwanWharf’sberth7#alterationintheyear|
|Short-termborrowings|||141,610,178.37|2.05%|-100%|Repaid|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 2.Assets and liabilities measured atfairvalue
Unit:RMBYuan
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Openingamount|Gain/lossonfairvaluechangeinthereportingperiod|Cumulativefairvaluechangerecordedintoequity|Impairmentprovisionsinthereportingperiod|Purchasedamountinthereportingperiod|Soldamountinthereportingperiod|Closingamount|
|Financialassets||||||||
|Available-for-salefinancialassets|8,750,000||-150,000||||8,550,000|
|Subtotaloffinancialassets|8,750,000||-150,000||||8,550,000|
|Totaloftheabove|8,750,000||-150,000||||8,550,000|
|Financialliabilities|0||0||||0|

Major changes in measurement attributes ofmain assets in reporting period
□Yes√ No
3.Restricted asset rights asof theendof this reporting period
Inapplicable
V. Investments
1.General situation
□Applicable√ Inapplicable
2.Major equity investments made inreporting period
□Applicable√ Inapplicable
3.Major non-equity investments ongoinginreporting period
□Applicable√ Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 4.Investments infinancial assets
(1) Securities investment
Unit:RMBYuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Varietyofsecurities|Codeofsecurities|Nameofsecurities|Initialinvestmentcost|Accountingmeasurementmodel|Openingbookvalue|Gain/lossonfairvaluechangesincurrentperiod|Cumulativefairvaluechangesrecordedintoequity|Purchasedincurrentperiod|Soldincurrentperiod|Gain/lossincurrentperiod|Closingbookvalue|Accountingtitle|Sourceoffunds|
|Stock|600377|JiangsuExpressway|1,120,000|Fairvaluemethod|8,750,000|0|-150,000|0|0|400,000|8,550,000|Available-for-salefinancialassets|Self-ownedfunds|
|Stock|400032|PetrochemicalA1|3,500,000|Costmethod|382,200|0|0|0|0|0|382,200|Available-for-salefinancialassets|Self-ownedfunds|
|Stock|400009|GuangJian1|27,500|Costmethod|17,000|0|0|0|0|0|17,000|Available-for-salefinancialassets|Self-ownedfunds|
|Total|||4,647,500|--|9,149,200|0|-150,000|0|0|400,000|8,949,200|--|--|

(2) Investments in financialderivatives
No suchcases in reporting period
5.Use ofraised funds
No suchcases in reporting period
VI.Saleof majorassets andequity interests
1.Saleofmajor assets
No suchcases in reporting period
2.Saleofmajor equity interests
No suchcases in reporting period
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited VII. Main controlled and jointstock companies
Main subsidiaries and jointstock companies withover10% effectontheCompany’s net profit Unit:RMBYuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Companyname|Companyvariety|Mainbusiness|Registeredcapital|Totalassets|Netassets|Operatingrevenues|Operatingprofit|Netprofit|
|ChiwanContainerTerminalCo.,Ltd.|Subsidiary|Containerhandling|USD95.3million|1,965,224,639.43|1,804,827,351.32|780,248,364.76|335,020,399.72|287,120,208.26|
|ShenzhenChiwanHarborContainerCo.Ltd.|Subsidiary|Containerhandling|RMB288.2million|844,215,780.64|492,635,817.08|333,594,430.50|158,176,922.84|135,785,699.86|
|DongguanChiwanTerminalCo.,Ltd.|Subsidiary|Handlingandstorageofbulkcargos|RMB400million|947,915,459.60|556,799,419.25|229,420,530.53|68,738,680.34|68,866,908.53|
|ChiwanWharfHoldings(HK)Limited|Subsidiary|Investmentholding|HKD1million|1,468,819,888.73|1,445,051,131.08|18,381,548.16|68,124,245.95|63,769,595.72|

Other main subsidiaries and jointstock companies
Unit:RMBYuan
|||||||||
|-|-|-|-|-|-|-|-|
|Companyname|Companyvariety|Industry|Mainproducts/services|Registeredcapital|Totalassets|Netassets|Netprofit|
|HarborDivision|Non-independentlegalentity|Transportation|Handlingandwarehousingofgrainandfeedstuff|N/A|619,555,521.69|515,410,792.19|26,004,945.56|
|ShenzhenChiwanTransportationCo.,Ltd.|Subsidiary|Transportation|Towtruckserviceforcontainersintheport|RMB15million|75,543,534.69|33,654,003.93|3,360,711.40|
|ShenzhenChiwanTugboatsCo.,Ltd.|Subsidiary|Transportation|Tugboatservice|RMB24million|145,152,847.37|51,002,798.08|18,349,546.90|
|DongguanChiwanWharfCompanyLimited|Subsidiary|Transportation|Handlingandstorageofbulkcargos|RMB450million|1,054,834,857.77|752,469,897.99|55,127,446.88|
|ChinaOverseasHarbourAffairs(Laizhou)Co.,Ltd.|Stock-participatingsubsidiary|Transportation|Handlingandwarehousingofpetroleum,liquefiedproductsandbulkcargos|USD176,407,700|2,218,646,787.48|1,985,353,143.45|150,392,274.39|

VIII. Structured bodies controlled by theCompany
□Applicable√ Inapplicable
IX.OutlookoftheCompany’s future development
1.Outlookand trends oftheindustry
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 2017 is expected to continue to see a complicated and serious situation in the global economy as well as a slow development pace in global shipping, whichwouldn’t be changed in a short term. The economy of traditional industry will be in the passage of reducing excess production capacity in a long term. The fast growth of port throughput slowed down to intermediate, even unit-digit speed, representing a situation where the net growth of throughput and annual average growth speed both declined. The development ofChina’s port industry will transfer from obtaining benefits by relying on the bonus brought by economy development to obtaining benefits by improving quality and efficiency, as well as building high-end value chain by itself. The excess production capacity will intensify regional competitions, making mutual benefit and win-win result caused by leveraging resource integration becomes thegeneral trend.
In terms of container handling, container throughput in the Pearl River Delta is expected to remain stable. Larger ships and shipping alliances have made clients more centralized. The adjustment of regional industry layout, as well as the rapid development of cross-border E-commerce put forward higher requirements to container ports. The risk of business fluctuation will aggravate. The industry position and business scale oftheCompany, theregional hubport, willkeep steady.
As for bulk cargo handling, regional demand for grain and feedstuff keeps growing, and the demand for fertilizer keeps stable. In future, with the improvement of resource capability of bulk cargo handling, the development of bonded and transit businesses, and the cultivation of new supply of good and new business forms, the overall market competitiveness will continuously get enhanced. Throughput of our bulk cargo handling business will expectedly keep stable growing, constantly occupying theleading positionin regional market.
2.Developmentstrategy
During the 13th Five-Year Plan period, focusing on the strategy vision of “Building the Regional 1stLevel’s Port Integrated Servicer”, With our strategic standard of development being “Based on Main Business of Port Service, Be a Local Standard; Expand Comprehensive Service for Business Upgrade”, we strive to build a company featuring excellent management, great efficiency, potential for sustained development and the ability to create constant value for its shareholders, employees, clients and thesociety.
In the reporting period, we researched and formulated the implementation schemes for our strategic planning. In future, we will intensively farm on the area on the basis of main businesses, fully take advantage of the internet tools to exert ourselves to develop port investment and operation business, port integrated development business, and port extending service business.We’ll put forth effort on improving our ability of lean management, driving innovation, resource integration, organization establishment, as well as risk management.
3.Business plansfor2017
In face of the complex and changeable market in 2017, we will adhere to the guideline of “Aiming at development through Real Practice and Solid Work, Creating 1st Class Company on the basis of Main businesses” and vigorously respond to challenges so as to achieve sound growth in our business results and profits. Ourmain business plans are as follows:
(1) To knowwell about themarket situation, and ensure business growth in size
In order for a steady growth in our business scale, we will actively deal with changes in the shipping market and industry trends, keep up-and-coming commercial strategies, solidify and increase our local market position, as well as continue to expand and extend integrated services based onthemain port business, and enhancecustomer’s stickiness
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited (2) To optimizeresource allocation and improveresource utilization rate
We’ll positively carry forward the 270-meter broadening and dredging project for Tonggu sea route, improve the hardware conditions for shipping, launch the transformation of Berth5-6# , Chiwan Port, and keep propelling the reformation of the storage yard in ports. The Bulk grain warehouses Phase II, Machong Port will be accomplished and put into operation, and the construction of the Bulk grain warehouses Phase III., together with other supporting facilities, will be accelerated.We’ll reinforce the optimization and utilization of the existing stock of resources, and improve the resources utilizationinfull aspects.
(3) To enhance lean management and innovation to improve quality and efficiency for internal management
Lean management and innovation will be pushed forward in the form of projects.We’ll impel and implement the informatization construction plan to improve the port management efficiency.We’ll strength establishing institutions and the personnel, perfect risk management and control system, and ensure our standard operation.We’ll specially carry forward management and control on key costs in multiple dimensions, and execute long-acting tracking.We’ll encourage technology transformation and innovation aiming at providing practical production solutions to give expression to thevalues ofinnovation.
(4) To lookforinvestment and cooperation opportunitiesto push forward our leaping development We will keep looking for regional opportunities for resource integration and business expansion, and make use of our financing platform and brand advantage, so as to further perfect and enlarge our business layout and achieve business synergistic effect. And at the same time,we’ll propel strategic cooperation to lock in qualified customers, so that our integrated competitiveness can be improved.
4.Capital needs andexpenditureplanfor2017
To implement our future development strategies and achieve the business goals we have set, a capital expenditure of RMB537.60 million is planned for 2017, of which RMB407.70 million will be invested in wharfs and warehouses, RMB79.19 million in mechanical equipment and technical improvement projects, RMB43.46 million in computer projects and RMB7.25 million in administration and other. The said capital expenditures will be mainly funded by cash inflows from operating activities of the Company and borrowings from interbank markets and financial institutions.
5.Possiblerisksand countermeasures
(1) Riskconcerning theexternal environment
Our main businesses depend largely on the domestic and international macro economy and trade trends. Currently, we face great challenges in business development due to the consistently weak global economy, the increasingly stronger shipping alliances, the slow growth of port business scale and operating profit. We will positively research and estimate on the changes in the operating environment, improve our flexibility to adapt to the market, and meanwhile, optimize resource allocation based on proper situations, so as to transform our operation mode the direction of adapting to regional economy development and industry upgrade.We’ll seek for opportunities against challenges, and strivefor thesteadiness of core businesses.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited (2) Riskconcerning regional competitions
The Pearl River Delta is already dense with ports, and there is port capacity increasing consistently to heat up competition in a slow-growing market. Our container and bulk cargo businesses has always been placed in the regional hub port and leading position, together with the synergistic operation advantage, have created strong market competitiveness. With the gradually improving resource capability and strengthening regional cooperation in future, our comprehensive competitiveness willbe further enhanced.
(3) Riskofuprising costs
Prices of production elements such as land and labor keep rising, resulting to rigid increase of the operating cost of wharfs, and squeezing the space for enterprise profits. We will enhance the utilization and analysis on the existing stock of resources, deeply dig out the utilization efficiency of resources such as land and shorelines.We’ll keep reinforcing on lean management and innovation to improve quality and efficiency, specially push forward cost control participated by the whole personnel, covering the whole process and whole aspects, so as to remit the pressure form uprising costs.
X. Visitspaidto theCompany forpurposes ofresearch, communication, interview,etc. 1.In thereportingperiod
|||||
|-|-|-|-|
|Date|Wayofvisit|Typeofvisitor|Maindiscussion,materialsprovided&index|
|Jan.-Dec.2016|Byphoneorwritteninquiry(EasyIRplatformofSZSE)|Individualsandinstitutions|Maindiscussion:basicbusinesscondition,investmentsandfinancialconditionoftheCompany;Materialsprovided:brochureoftheCompany;Index:SZSEEasyIR(http://irm.cninfo.com.cn/ssessgs/S000022/index.html)|
|Timesofvisit|||162|
|Numberofvisitinginstitutions|||11|
|Numberofvisitingindividuals|||151|
|Numberofothervisitingentities|||0|
|Significantundisclosedinformationdisclosed,revealedorleaked|||None|

2.From end ofreportingperiod to disclosuredate
|||||
|-|-|-|-|
|Date|Wayofvisit|Typeofvisitor|Maindiscussion,materialsprovided&index|
|Jan.-Mar.2017|Byphoneorwritteninquiry(EasyIRplatformofSZSE)|Individualsandinstitutions|Maindiscussion:basicbusinesscondition,investmentsandfinancialconditionoftheCompany;Materialsprovided:brochureoftheCompany;Index:SZSEEasyIR(http://irm.cninfo.com.cn/ssessgs/S000022/index.html)|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
|||
|-|-|
|Timesofvisit|22|
|Numberofvisitinginstitutions|9|
|Numberofvisitingindividuals|13|
|Numberofothervisitingentities|0|
|Significantundisclosedinformationdisclosed,revealedorleaked|None|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section V. Significant Events
1.Profitdistributionto common shareholders&increase ofsharecapital fromcapital reserve Formulation, execution or adjustments of profit distribution policy for common shareholders, especially cash dividend policy, in reporting period
Pursuant to the guiding spirit of the Notice of CSRC on Further Implementing Matters Related to Cash Dividends of Listed Companies, the Notice of CSRC Shenzhen Bureau on Fully Implementing the Notice of CSRC on Further Implementing Matters Related to Cash Dividends of Listed Companies (Shen-Zheng-Ju-Gong-Si-Zi (2012) No. 43), the Company has revised some articles in its Articles of Association in relation to the profit distribution policy, which involves the specific policy, the decision-making procedure and mechanism, the adjustment and implementation of the profit distribution policy, profit distributed to foreign shareholders and other aspects (for the revised Articles of Association of the Company, see www.cninfo.com.cn). The revised Articles of Association of the Company was reviewed and approved on the 5th Special Session of the 7th Board of Directors for 2012 on 3 Aug. 2012, and later on the 1st SpecialShareholders’ General Meeting for 2012 on 21 Aug. 2012. During the reporting period, the Company executed the profit allocation policy in strict compliance with the revised Articles of Association, and it did not again alter the profit allocation policy, especially the cashdividend policy.
|||
|-|-|
|Specialstatementaboutthecashdividendpolicy||
|IncompliancewiththeCompany’sArticlesofAssociationandtheresolutionofthegeneralmeeting|Yes|
|Specificandcleardividendstandardandratio|Yes|
|Completedecision-makingprocedureandmechanism|Yes|
|Independentdirectorsfulfilledtheirresponsibilitiesandplayedtheirduerole.|Yes|
|Minorityshareholdershavethechancetofullyexpresstheiropinionanddesireandtheirlegalrightsandinterestswerefullyprotected.|Yes|
|Inadjustmentoralterationofthecashdividendpolicy,theconditionsandprocedurewereincompliancewithregulationsandtransparent.|Yes|

Profit distribution plans (preplans) for common shareholders and plans (preplans) for turning capitalreserve into sharecapital forrecentthree years (includingreporting period) (1) Profit distribution and dividend payout plan for2014
As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the Company (without subsidiaries) for 2014 stood at RMB268,153,919.27 and the cumulative
distributableprofit at RMB648,306,530.85.
1) According to the Company Law and the Articles of Association of the Company, the Company
may stop making statutory surplus reserve when its accumulative amount reaches50% of the
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited registered capital. The accumulative statutory surplus reserve of the Company (without subsidiaries) stood at RMB520,074,434.56 for 2014, equal to80.66% of the registered capital. Therefore, the Company did not plan to draw surplusreserve from retained profit for2014.
2) Based on the total 644,763,730 shares as at the end of 2014, a cash dividend of RMB3.24 (tax included) was to be distributed for every 10 shares, with a total of RMB208,903,448.52 being distributed.
After the aforesaid allocations, the retained profit of the Company (without subsidiaries) stood at RMB439,403,082.33.
The Board of Directors of the Company published the implementation announcement on dividend payout for 2014 on Securities Times and Ta Kung Pao (HK) dated 14 Jul. 2015, and completed the dividend payout fortheA-share and B-share holders on22Jul.2015and 24Jul. 2015respectively. (2) Profit distribution and dividend payout plan for2015
As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the Company (without subsidiaries) for 2015 stood at RMB264,241,215.72 and the cumulative distributableprofit at RMB703,644,298.05.
1) According to the Company Law and the Articles of Association of the Company, the Company may stop making statutory surplus reserve when its accumulative amount reaches50% of the registered capital. The accumulative statutory surplus reserve of the Company (without subsidiaries) stood at RMB520,074,434.56 for 2015, equal to80.66% of the registered capital. Therefore, the Company intended not to draw surplus reserve from retained profit for 2015.
2) Based on the total 644,763,730 shares as at the end of 2015, a cash dividend of RMB4.10 (tax included) was to be distributed for every 10 shares, with a total of RMB 264,353,129.30 being distributed.
The Board of Directors of the Company published the implementation announcement on dividend payout for 2015 on Securities Times and Ta Kung Pao (HK) dated 21 Jul. 2016, and completed the dividend payout fortheA-share and B-share holders on28Jul.2016and 1Aug. 2016respectively. (3) Profit distribution and dividend payout pre-plan for 2016
As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the Company (without subsidiaries) for 2016 stood at RMB195,474,231.11 and the cumulative distributableprofit at RMB634,765,399.86.
1) According to the Company Law and the Articles of Association of the Company, the Company may stop making statutory surplus reserve when its accumulative amount reaches50% of the registered capital. The accumulative statutory surplus reserve of the Company (without subsidiaries) stood at RMB520,074,434.56 for 2016, equal to80.66% of the registered capital. Therefore, the Company intends not todraw surplus reserve from retained profit for2016.
2) As planned, based on the total 644,763,730 shares as at the end of 2016, a cash dividend of RMB4.96 (tax included) was to be distributed for every 10 shares, with a total of RMB319,802,810.08being distributed.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited After the aforesaid allocations, the retained profit of the Company (without subsidiaries) stood at RMB314,962,589.78.
The above-mentioned allocation plan shall be submitted to the 2016 AnnualShareholders’ Meeting for review and approval.
Cash dividends distributed to common shareholders in recent three years (including reporting period)
Unit:RMBYuan
|||||||
|-|-|-|-|-|-|
|Year|Cashdividend(taxincluded)|NetprofitattributabletocommonshareholdersoftheCompanyinconsolidatedstatementfortheyear|RatioofcashdividendtonetprofitattributabletocommonshareholdersoftheCompanyinconsolidatedstatement(%)|Cashdividendinotherforms|Ratioofcashdividendinotherforms|
|2016|319,802,810.08|532,376,492.97|60.07%|0|0%|
|2015|264,353,129.30|527,751,492.42|50.09%|0|0%|
|2014|208,903,448.52|417,594,271.33|50.03%|0|0%|

 II. Pre-plan for profit allocation and turning capital reserve into share capital for reporting period
|||
|-|-|
|Dividendforevery10shares(RMBYuan)(taxincluded)|4.96|
|Increasedsharesforevery10shares(share)|0|
|Totalsharesasthebasisfortheallocationpreplan(share)|644,763,730|
|Totalcashdividends(RMBYuan)(taxincluded)|319,802,810.08|
|Distributableprofit(RMBYuan)|634,765,399.86|
|Percentageofthecashdividendsinthetotaldistributedprofit(%)|100%|
|Detailsofprofitdistributionfortheyear||
|AsauditedbyDeloitteToucheTohmatsuCertifiedPublicAccountantsLLP,thenetprofitoftheCompany(withoutsubsidiaries)for2016stoodatRMB195,474,231.11andthecumulativedistributableprofitatRMB634,765,399.86.1.Accordingtothe CompanyLaw andtheArticles ofAssociation oftheCompany, theCompanymay stopmakingstatutory surplus reserve when its accumulative amount reaches 50% of the registered capital. The accumulativestatutory surplus reserve of the Company (without subsidiaries) stood at RMB520,074,434.56 for 2016, equal to80.66% of the registered capital. Therefore, the Company intends not to draw surplus reserve from retained profitfor2016.2. As planned, based on the total 644,763,730 shares as at the end of 2016, a cash dividend of RMB4.96 (taxincluded)wastobedistributedforevery10shares,withatotalofRMB319,802,810.08beingdistributed.||

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited After the aforesaid allocations, the retained profit of the Company (without subsidiaries) stood at RMB314,962,589.78.
The above-mentioned allocation plan shall be submitted to the 2016 AnnualShareholders’ Meeting for review and approval.
III. Fulfillment ofcommitments
1. Commitments of theCompany’s actual controller, shareholders, related parties and acquirer, as well as the Company and other commitment makers, fulfilled in reporting period or ongoing atperiod-end
||||||||
|-|-|-|-|-|-|-|
|Commitment|Commitmentmaker|Typeofcommitment|Contents|Timeofmakingcommitment|Periodofcommitment|Fulfillment|
|Sharereformcommitment|CNDGroup|Other|In order to enhance theshareholding confidence oftradable share holders, andencourage the coremanagement and keypersonnel so that theinterests of the managementand all the shareholders cancoincide, CND made acommitment to entrust,through the general meetingof the Company, the BoardofDirectorsoftheCompanytoformulateandcarryoutanequity incentive plan at aproper timing after thecompletion of the sharedivision reform according toapplicable laws andregulations.|Apr.2006|Standing|CND Group proposed in Mar.2009 to the Company <TheReport on Formulating andCarrying out the EquityInventive Plan of ShenzhenChiwan Wharf HoldingsLimited>, which was reviewedand approved in the generalmeetingoftheCompanyinMay2009. The Board of Directors ofthe Company was authorized toformulate and carry out anequity incentive plan at a propertiming according to applicablelaws and regulations. In Jun.2014, according to <TheMethods (Trial) for StateHolding Listed Companies toCarry out Equity Inventive>jointlypromulgatedbytheState-owned Assets Supervision andAdministration Commission ofthe State Council and theMinistry of Finance, as well as<The Administrative Methods(Trial) for Equity Incentive ofListed Companies> promulgatedby CSRC, the equity incentiveplan could not be successfullyformulated due to policy andregulation changes, as well assome restrictions. Therefore, theCompany has decided not toformulate and carry out theequity incentive plan for now.The Board of Directors willcontinue to follow and studyrelevantpoliciesandregulations,and reconsider formulating andcarrying out a new equityincentive plan according to theactual situation of the Companyand executing the decision-makingprocedure.|
|Commitmentin theacquisition|CMPort|Commitmentonhorizontalcompetition,|1.Commitmentsaboutsharecustody;2. Commitment about|17Sept.2012|Concerninghorizontalcompetition,itis|Intheprocessofexecution|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
|||||||||
|-|-|-|-|-|-|-|-|
|report or thereport onequitychanges||related-partytransactionsand capitaloccupation|guaranteeing theindependency of theCompany;3. Commitment abouthorizontalcompetition;and4. Commitment aboutregulating related-partytransactions|||promisedthatthehorizontalcompetitionissuewillbesolvedthroughwayssuchasassetreorganizationinthecoming3-5years.Andtheotherthreecommitmentsaresubjecttothesharecustodyperiod.||
||MalaiStorage|Commitmentonhorizontalcompetition,related-partytransactionsand capitaloccupation|1. Commitment aboutguaranteeing theindependency of theCompany;2. Commitment abouthorizontalcompetition;and3. Commitment aboutregulating related-partytransactions||27Dec.2012|WheneverMalaiStorageholdstheCompany’sshares|Intheprocessofexecution|
|Commitmentinassetreorganization||||||||
|CommitmentinIPOorrefinancing||||||||
|Equityincentivecommitment||||||||
|Othercommitmentsmadetominorityshareholders|CNDGroup|Other|CND Group irrevocably andunconditionally agrees thatif Chiwan Wharf suffersfrom any loss, expense,liability, demandedcompensation or law suitduetoanyactualorpotentialillegality or unenforceabilityinanylanduseagreementorrelevant documents signedor to be signed by CNDGroup or other relatedproblems, CND Grouppromises to give fullimmunity to the recipientparty of the land use rightand its inheritor and therecipient person regardingtheaforesaidmatters.||20Mar.2011|Standing|Intheprocessofexecution|
|Executedontimeornot||||Yes||||
|Explainindetailspecificreasonsforfailingtofulfillcommitmentandplanfornextstepincaseofcommitmentunfulfilledontime||||N/A||||

2. Where there had been an earnings forecast for an asset or project and the reporting period was still within the forecast period, explain why the forecast has been reached for the
reporting period
□Applicable√ Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited IV. Occupation of theCompany’s capital by the controlling shareholder or its related parties fornon-operatingpurposes
During the reporting period, the controlling shareholder or its related parties did not occupy capital for non-operating purposes or repay such capital. Deloitte Touche Tohmatsu Certified Public Accountants LLP issued the “Special Report on Capital Occupation by the Controlling Shareholder and Other Related Parties of Shenzhen Chiwan Wharf Holdings Limited. For the detailed report, see the websitedesignated bythe Company forinformation disclosure.
V. Explanation given by the Board of Directors, Supervisory Board and Independent Directors (if applicable) regarding the “non-standardauditor’s report” issued by the CPAs firmforthereportingperiod
□Applicable√ Inapplicable
VI. Explain change of the accounting policy, accounting estimate and measurement methods as compared with thefinancialreporting oflastyear
There was nosuch situation oftheCompany during thereporting period.
VII. Explain retrospective restatement due to correction of significant accounting errors in thereporting period
There was nosuch situation oftheCompany during thereporting period.
VIII. Explain change of the consolidation scope as compared with the financial reporting of lastyear
There was nosuch situation oftheCompany during thereporting period.
IX.Particulars aboutengagement anddisengagementof CPAs firm
Present CPAs firm:
|||
|-|-|
|NameofdomesticCPAsfirm|DeloitteToucheTohmatsuCertifiedPublicAccountantsLLP|
|RemunerationofdomesticCPAsfirm(RMB’0,000)|229|
|ConsecutiveyearsoftheauditservicesprovidedbydomesticCPAsfirm|5|
|NameofthecertifiedpublicaccountantsfromthedomesticCPAsfirm|LiWeihua,SuMin|
|NameofoverseasCPAsfirm(ifany)|N/A|
|RemunerationofoverseasCPAsfirm(RMB’0,000)|0|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
|||
|-|-|
|ConsecutiveyearsoftheauditservicesprovidedbyoverseasCPAsfirm(ifany)|N/A|
|NameofthecertifiedpublicaccountantsfromtheoverseasCPAsfirm(ifany)|N/A|

 CPAs firm changed in current period or not?
□Yes√ No
CPAs firm, financial accountant orsponsorengagedfor theaudit ofinternal control:
As approved by the 1st Session of the Audit Committee under the 8th Board of Directors for 2016, the 5thSession of the 8th Board of Directors and the Annual General Meeting for 2015, it was agreed to renew the employment of Deloitte Touche Tohmatsu Certified Public Accountants LLP as theCompany’s accounting firm for 2016 to audit the annual financial report and internal control. The fee for auditing the financial report for 2016 and internal control are RMB1.93 million and RMB0.36 millionrespectively, totalingRMB2.29 million.
X. Particulars about trading suspension and termination faced after the disclosure of annual report
□Applicable√ Inapplicable
XI.Related events ofthebankruptcy organization
□Applicable√ Inapplicable
XII. Significantlawsuits andarbitrations
□Applicable√ Inapplicable
XIII. Punishmentand rectification
□Applicable√ Inapplicable
XIV. Credit conditions of the Company as well as its controlling shareholder and actual controller
□Applicable√ Inapplicable
XV. Execution of the equity incentive plan, employee stock ownership plan or other incentive measures foremployees oftheCompany
□Applicable√ Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited XVI. Significantrelated-party transactions
1.Related-party transactions relevant to routineoperation
Unit:RMBYuan
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Relatedparty|Relationship|Typeoftherelated-partytransaction|Contentoftherelated-partytransaction|Pricingprincipleoftherelated-partytransaction|Transactionprice|Transactionamount(RMB10,000’)|Proportioninsamekindoftransactions|Approvedtransactionamount(RMB10,000’)|Whetherexceededtheapprovedamount|Settlemntmethodoftherelated-partytransaction|Similarmarketprice|Disclosuredate|Disclosureindex|
|CNDGroup|Shareholder|Lease|Landusefee|Mutualnegotiation|61,655,931.48|6,165.59|80.67%|7,000|No|Paymentbymonth|61,655,931.48|28Mar.2016|Seehttp://www.cninfo.com.cnfortheresolutionannouncement(No.2016-013)|
|Total||||--|--|6,165.59|--|7,000|--|--|--|--|--|
|Detailsaboutreturnoflarge-amountsales||||Inapplicable||||||||||
|WheretheCompanyclassifiesandestimatesthetotalamountofroutinerelated-partytransactionsforthereportingperiod,explaintheactualimplementationduringthereportingperiod(ifany)||||Inapplicable||||||||||
|Explainwhythetransactionpriceisgreatlydifferentfromthemarketprice(ifapplicable)||||Inapplicable||||||||||

2.Related-party transactions arisingfromassets orequities acquisitionand saleofassets□Applicable√ Inapplicable
3.Related-party transactions arisingfromjointinvestment inexternal parties
□Applicable√ Inapplicable
4.Credits andliabilities with related parties
□Applicable√ Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 5.Other significantrelated-party transactions
Unit:RMB’0,000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Relatedparty|Relation|Typeofcredit/liability|Reasonforcredit/liability|Whethertherewasnon-operatingcapitaloccupation|Openingbalance|Increase|Decrease|Closingbalance|Disclosuredate|Disclosureindex|
|CDF|Relatedparty*|Receivablefromrelatedparty|Deposits|No|5,564.91|27,726.27|33,170|121.19|28Mar.2016|Seehttp://www.cninfo.com.cnfortheresolutionannouncement(No.2016-013)|

* On 30 Nov. 2015, the Company signed an equity transfer contract with CND Group, transferring the20% stake it held in CDF to the latter for RMB112,900,000. Starting from the transfer day, CDF is no longer an associate of the Company. However, the parent company of the Company still has a significant influence on CDF and theCompany’s director Zhang Jianguo is also a director of CDF, which thusmakes CDFa related party of theCompany.
Deloitte Touche Tohmatsu Huayong CPAs Firm (LLP) issued the Special Notes of the Financial Business Involved with the Loans and Deposits of the Related-party Transactions of the Financial Companies according to the above financial business and for the specific content please refer to www.cninfo.com.cn.
XVII. Particulars aboutsignificantcontracts and theirfulfillment
1.Trusteeship, contracting andleasing
(1) Trusteeship
□Applicable√ Inapplicable
(2) Contracting
□Applicable√ Inapplicable
(3) Leasing
□Applicable√ Inapplicable
2.Significantguarantee
□Applicable√ Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 3.Entrusted cash management
(1) Entrusted assetmanagement
□Applicable√ Inapplicable
(2) Entrusted loans
□Applicable√ Inapplicable
4.Other significantcontracts
□Applicable√ Inapplicable
XVIII. Social responsibilities
1.Targeted measures taken tohelp peoplelift themselves outof poverty
□Applicable√ Inapplicable
2.Other social responsibilitiestaken
The Company has been paying high attention on fulfilling the social responsibility, and has comprehensively integrated the requirements of fulfilling social responsibility into development strategy and daily operation management. The Company made great efforts to build the green port of “resources-saving” as well as “environmentally friendly” type, so as to realize the healthy and harmonious development between the enterprise and the employees, enterprise and the society, enterprise and theenvironment.
The Company maintained the legitimate interests of the employees according to laws, cared for the employees and with whom, vigorously built the harmonious labor-capital relationship; conducted trainings and communication activities related to employee skills, management ability, and cohesiveness in various forms, and improvedemployees’ work autonomy and enthusiasm in all- around vision; built an appraisal mechanism which was objective and fair, normative and transparent as well as performance-oriented; positively put internal public-recruitment for the management into trial use, enlarged the promotion channel for employees, and provided employees with moreopportunities and platforms fordevelopment.
Paying high attention on the production safety and occupational health, the Company successfully passed the recheck for safety standard in 2016. The Company conscientiously implemented the system of responsibility in safe production with the character of “one position pairing dual responsibilities”, took advantage of the advanced safety management system, executed the safety inspection and hidden risks governance in production places in strict accordance with the safety management and control standards of “Five Inspection” and “Five Appropriateness”, and held many times of emergency drills and specific rectification so that the safety awareness of the whole staffs improved obviously with no significant safety production liability accident of the Company during 2016.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited In purpose of contributing to a livable environment, the Company pursued for promoting the resources saving and environmental protection by the technology innovation. Environmental monitoring was intensified in daily production. The Company reduced the energy consumption as well as the pollutant emission through a serious of measures such as promoting the usage of double towing bracket trailer, the mobile stacker crane, as well as the research and manufacture of the bulk grain dust suppression hopper, of which the mobile stacker crane won the practical and new patent certification in Aug 2016. The Company strictly executed environmental requirements in engineering project design and construction, as well as positively supported the special investigation bytheenvironment protection bureau.
In order to effectively protect the rightful interests of clients and suppliers, the Company improved service quality and standardized the procurement process. In Sep 2016, two enterprises of the Company, the Chiwan Port and the Machong Port, both won the honor of “Faithful Enterprise in Import and Export Quality in China in 2016” awarded by the China Entry-Exit Inspection and Quarantine Association.
Does the listed company or its subsidiaries belong to the heavily polluting industries stipulated by the environmental protection authorities ofthecountry?
□Yes√ No□ Inapplicable
Whether asocial responsibility report is released
□Yes√ No
XIX. Othersignificantevents
In the reporting period, the Company disclosed the following significant events on Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn:
||||
|-|-|-|
|AnnouncementNo.|Date|Content|
|2016-001|2016-01-06|AnnouncementonResolutionsoftheFirstSpecialMeetingoftheEighthBoardofDirectorsin2016|
|2016-002|2016-01-06|NoticeoftheFirstSpecialGeneralMeetingin2016|
|2016-003|2016-01-09|AnnouncementonBusinessVolumeDataofDec2015|
|2016-004|2016-01-18|IndicativeAnnouncementonConveningtheFirstSpecialGeneralMeetingin2016|
|2016-005|2016-01-23|AnnouncementonResolutionsoftheFirstSpecialGeneralMeetingin2016|
|2016-006|2016-01-23|AnnouncementonResolutionsoftheSecondSpecialMeetingoftheEighthBoardofDirectorsin2016|
|2016-007|2016-02-05|AnnouncementonBusinessVolumeDataofJan2016|
|2016-008|2016-02-19|AnnouncementonAbnormalityofStockPrice|
|2016-009|2016-03-10|AnnouncementonBusinessVolumeDataofFeb2016|
|2016-010|2016-03-28|AnnouncementonResolutionsoftheFifthMeetingoftheEighthBoardofDirectors|
|2016-011|2016-03-28|AnnouncementonResolutionsoftheFifthMeetingoftheEighthSupervisoryBoard|
|2016-012|2016-03-28|AbstractofAnnualReport2015|
|2016-013|2016-03-28|AnnouncementonExpectedRoutineRelated-PartyTransactionsfor2016|
|2016-014|2016-04-08|AnnouncementonBusinessVolumeDataofMar2016|
|2016-015|2016-04-15|AnnouncementontheDuePaymentof2015PhaseIShort-termFinancingBonds|
|2016-016|2016-04-23|AnnouncementonFollow-upRatingResultofCorporateBond“13Chiwan01”|
|2016-017|2016-04-27|AnnouncementonResolutionsoftheThirdSpecialMeetingoftheEighthBoardofDirectorsin2016|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||
|-|-|-|
|2016-018|2016-04-27|QuarterOneReport2016|
|2016-019|2016-04-27|AnnouncementonJointInvestmentwithRelatedPartyinHaixingOnodaProject|
|2016-020|2016-04-27|NoticeofConveningAnnualGeneralMeeting2015|
|2016-021|2016-05-10|AnnouncementonBusinessVolumeDataofApr2016|
|2016-022|2016-05-28|IndicativeAnnouncementonConveningAnnualGeneralMeeting2015|
|2016-023|2016-06-07|AnnouncementonResolutionsofAnnualGeneralMeeting2015|
|2016-024|2016-06-08|AnnouncementontheDuePaymentof2015PhaseIIISuper-short-termFinancingBonds|
|2016-025|2016-06-13|AnnouncementonBusinessVolumeDataofMay2016|
|2016-026|2017-07-12|VoluntaryInformationDisclosureAnnouncementonBusinessVolumeDataofJun2016|
|2016-027|2016-07-18|IndicativeAnnouncementonIssueof2016PhaseISuper-short-termFinancingBonds|
|2016-028|2016-07-21|AnnouncementontheExecutionofthe2015DividendPayout|
|2016-029|2016-07-23|AnnouncementonIssueResultsof2016PhaseISuper-short-termFinancingBonds|
|2016-030|2016-08-06|AnnouncementonObtainingRegistrationPermitforIssuingMediumTermNotes|
|2016-031|2016-08-11|VoluntaryInformationDisclosureAnnouncementonBusinessVolumeDataofJul2016|
|2016-032|2016-08-26|AnnouncementonResolutionsoftheSixthMeetingoftheEighthBoardofDirectors|
|2016-033|2016-08-26|Abstractof2016Semi-annualReport|
|2016-034|2016-08-26|FirstIndicativeAnnouncementonExerciseofIssuerRedemptionOptiononthe2013CorporateBonds(PhaseI)|
|2016-035|2016-08-31|SecondIndicativeAnnouncementonExerciseofIssuerRedemptionOptiononthe2013CorporateBonds(PhaseI)|
|2016-036|2016-09-02|ThirdIndicativeAnnouncementonExerciseofIssuerRedemptionOptiononthe2013CorporateBonds(PhaseI)|
|2016-037|2016-09-08|VoluntaryInformationDisclosureAnnouncementonBusinessVolumeDataofAug2016|
|2016-038|2016-10-11|IndicativeAnnouncementonIssueof2016PhaseIISuper-short-termFinancingBonds|
|2016-039|2016-10-11|IndicativeAnnouncementonIssueof2016PhaseIMediumTermNotes|
|2016-040|2016-10-12|VoluntaryInformationDisclosureAnnouncementonBusinessVolumeDataofSep2016|
|2016-041|2016-10-14|AnnouncementonIssueResultsof2016PhaseIISuper-short-termFinancingBonds|
|2016-042|2016-10-14|AnnouncementonIssueResultsof2016PhaseIMediumTermNotes|
|2016-043|2016-10-18|AnnouncementonRedemptionResultandDelistingof2013CorporateBonds(PhaseI)|
|2016-044|2016-10-28|AnnouncementonResolutionsoftheFourthSpecialMeetingoftheEighthBoardofDirectorsin2016|
|2016-045|2016-10-28|QuarterThreeReport2016|
|2016-046|2016-10-28|AnnouncementonHoldingtheInternetReceptionforInvestors|
|2016-047|2016-11-03|AnnouncementonDetailsoftheInternetReceptionforInvestors|
|2016-048|2016-11-07|VoluntaryInformationDisclosureAnnouncementonBusinessVolumeDataofOct2016|
|2016-049|2016-12-07|IndicativeAnnouncementonIssueof2016PhaseIIISuper-short-termFinancingBonds|
|2016-050|2016-12-08|VoluntaryInformationDisclosureAnnouncementonBusinessVolumeDataofNov2016|
|2016-051|2016-12-13|AnnouncementonIssueResultsof2016PhaseIIISuper-short-termFinancingBonds|
|2016-052|2016-12-22|AnnouncementontheDuePaymentof2016PhaseISuper-short-termFinancingBonds|
|2016-053|2016-12-24|AnnouncementontheDuePaymentof2016PhaseIISuper-short-termFinancingBonds|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited XX. Significantevents ofthesubsidiaries oftheCompany
□Applicable√ Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section VI. Share Changes& Particulars about Shareholders
I. Changes inshares
1.Changes inshares
Unit:share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before||Increase(+)/decrease(-)|||||After||
||Number|Percentage(%)|Issueofadditionalshares|Bonusissue|Reservestostocks|Other|Sub-total|Number|Percentage(%)|
|I.Restrictedshares|431,094|0.07%|0|0|0|-125,994|-125,994|305,100|0.05%|
|1.Sharesheldbystate|0|0%|0|0|0|0|0|0|0%|
|2.Sharesheldbystate-ownedcorporations|0|0%|0|0|0|0|0|0|0%|
|3.Sharesheldbyotherdomesticinvestors|431,094|0%|0|0|0|-125,994|-125,994|305,100|0%|
|Including:Sharesheldbydomesticcorporations|0|0%|0|0|0|0|0|0|0%|
|Sharesheldbydomesticindividuals|431,094|0%|0|0|0|-125,994|-125,994|305,100|0%|
|4.Sharesheldbyforeigninvestors|0|0%|0|0|0|0|0|0|0%|
|Including:Sharesheldbyforeigncorporations|0|0%|0|0|0|0|0|0|0%|
|Sharesheldbyforeignindividuals|0|0%|0|0|0|0|0|0|0%|
|II.Non-restrictedshares|644,332,636|99.93%|0|0|0|125,994|125,994|644,458,630|99.95%|
|1.Renminbicommonshares|464,866,999|72.10%|0|0|0|-949|-949|464,866,050|72.10%|
|2.Domesticallylistedforeignshares|179,465,637|27.83%|0|0|0|126,943|126,943|179,592,580|27.85%|
|3.Overseaslistedforeignshares|0|0%|0|0|0|0|0|0|0%|
|4.Other|0|0%|0|0|0|0|0|0|0%|
|III.Totalshares|644,763,730|100%||||||644,763,730|100%|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Reasons for share changes
A. Director changes; and B. Increases and decreases in tradable shareholdings by senior management.
Particulars about theapproval ofthe change inshare capital
□Applicable√ Inapplicable
The transfer ofchange inshare capital
□Applicable√ Inapplicable
Change in sharecapital’s impacts on basic EPS and diluted EPS in recent year and recent issue, and net assets pershare attributed toequity shareholder andfinancial index etc.
□Applicable√ Inapplicable
Other contents was necessary to thecompany orthe securities regulators required tobedisclosed□Applicable√ Inapplicable
2.Changesinrestrictedshares
Unit:share
||||||||
|-|-|-|-|-|-|-|
|Nameofshareholders|Numberofrestrictedsharesattheperiod-begin|Numberofrelievedrestrictedshares|Numberofincreasedrestrictedshares|Numberofrestrictedsharesattheperiod-end|Reasonofrestriction|Dateofrestrictionrelief|
|QuJiandong|0|0|84,408|84,408|AccordingtotheArticlesofAssociationandtherelevantlawsandregulations|-|
|ZhangJianguo|55,712|0|0|55,712||-|
|YuanYuhui|10,530|0|0|10,530||-|
|NiKeqin|21,909|0|0|21,909||-|
|ZhaoQiang|11,328|0|0|11,328||-|
|NieQi|64,057|0|2,250|66,307||-|
|ZhaoChaoxiong|48,716|0|0|48,716||-|
|WangYongli|3,739|0|0|3,739||-|
|ZhangFang|2,451|0|0|2,451||-|
|ZhengShaoping|212,652|212,652|0|0||30Jun.2016|
|Total|431,094|212,652|86,658|305,100|--|--|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited II. Issuance andlistingofsecurities
1. List of the issue of the securities (excluding the preferred shares) during the reporting period
□Applicable√ Inapplicable
2. List of the total shares and the changes of the shareholders structure as well as the changes ofthe assets and liabilitiesstructure oftheCompany
□Applicable√ Inapplicable
3.Listoftheexisting internal employee stocks
□Applicable√ Inapplicable
Ⅲ.Shareholders andactual controller
1.Total number ofshareholders and theirshareholdings
Unit:share
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Totalnumberofcommonshareholdersatperiod-end|35,947,including25,640A-shareholdersand10,307B-shareholders||Totalnumberofcommonshareholdersatperviousmonth-endofthisReport’sdisclosure|||33,345,including22,841A-shareholdersand10,504B-shareholders||Totalnumberofpreferenceshareholderswithresumedvotingrightsatperiod-end(ifany)||0||Totalnumberofpreferenceshareholderswithresumedvotingrightsatperviousmonth-endofthisReport’sdisclosure(ifany)||0|
|Shareholdingsofshareholderswithastakeover5%|||||||||||||||
|Nameofshareholder||Natureofshareholder||Shareholdingpercentage|Totalsharesheldatperiod-end||+/-inreportingperiod||Numberofrestrictedsharesheld||Numberofnon-restrictedsharesheld||Pledgedorfrozenshares||
|CHINANANSHANDEVELOPMENT(GROUP)INC.||State-ownedcorporation||32.52%|209,687,067||0||0||209,687,067||0||
|SHENZHENMALAISTORAGECO.,LTD.||Commondomesticcorporation||25.00%|161,190,933||0||0||161,190,933||0||
|KEENFIELDENTERPRISESLIMITED||Foreigncorporation||8.58%|55,314,208||0||0||55,314,208||Unknown||
|CMBLSAREFTIFTEMPLETONASIANGRWFDGTI5496||Foreigncorporation||7.43%|47,914,954||0||0||47,914,954||Unknown||
|ICBC－LIONVALUEGROWTHSTOCKFUND||Commondomesticcorporation||0.42%|2,698,775||2,698,775||0||2,698,775||Unknown||
|BBHA/CVANGUARDEMERGINGMARKETSSTOCKINDEXFUND||Foreigncorporation||0.41%|2,617,518||0||0||2,617,518||Unknown||

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|SHENWANHONGYUANSECURITIES(HK)LIMITED|Foreigncorporation|0.39%|2,511,586||2,511,586|0|2,511,586||Unknown|
|CHINAMERCHANTSSECURITIES(HK)CO.,LTD.|State-ownedcorporation|0.38%|2,451,059||515,483|0|2,451,059||Unknown|
|TEMPLETONASIANGROWTHFUND|Foreigncorporation|0.29%|1,885,170||-772,682|0|1,885,170||Unknown|
|NORGESBANK|Foreigncorporation|0.26%|1,660,562||579,100|0|1,660,562||Unknown|
|Strategic investors or generalcorporations becoming top-tenshareholders due to placing of newshares(ifany)||N/A||||||||
|Related or acting-in-concert partiesamongtheshareholdersabove||ChinaMerchantsPortHoldingsCompany Limited(“CMPort”)isashareholderofChinaNanshanDevelopment (Group) Inc., and Shenzhen Malai Storage Co., Ltd. and Keen Field EnterprisesLimited are both wholly-funded subsidiaries of CMPort. Other than that, the Company does notknowwhethertheothernon-restrictedshareholdersarerelatedpartiesornot.||||||||
|Shareholdingsoftop10non-restrictedshareholders||||||||||
|Nameofshareholder||||Numberofnon-restrictedsharesheldatperiod-end||||Typeofshares||
|||||||||Type|Number|
|CHINANANSHANDEVELOPMENT(GROUP)INC.||||209,687,067||||Ashare|209,687,067|
|SHENZHENMALAISTORAGECO.,LTD.||||161,190,933||||Ashare|161,190,933|
|KEENFIELDENTERPRISESLIMITED||||55,314,208||||Bshare|55,314,208|
|CMBLSAREFTIFTEMPLETONASIANGRWFDGTI5496||||47,914,954||||Bshare|47,914,954|
|ICBC－LIONVALUEGROWTHSTOCKFUND||||2,698,775||||Ashare|2,698,775|
|BBHA/CVANGUARDEMERGINGMARKETSSTOCKINDEXFUND||||2,617,518||||Bshare|2,617,518|
|SHENWANHONGYUANSECURITIES(HK)LIMITED||||2,511,586||||Bshare|2,511,586|
|CHINAMERCHANTSSECURITIES(HK)CO.,LTD.||||2,451,059||||Bshare|2,451,059|
|TEMPLETONASIANGROWTHFUND||||1,885,170||||Bshare|1,885,170|
|NORGESBANK||||1,660,562||||Bshare|1,660,562|
|Related or acting-in-concert parties among the top ten non-restrictedly tradable share holders and between the top ten non-restrictedlytradableshareholdersandthetoptenshareholders||||China Merchants Port Holdings Company Limited (“CMPort”) is ashareholderofChinaNanshanDevelopment(Group)Inc.,andShenzhenMalai Storage Co., Ltd. and Keen Field Enterprises Limited are bothwholly-funded subsidiaries of CMPort. Other than that, the Companydoesnot knowwhethertheother non-restrictedshareholdersarerelatedpartiesornot.||||||
|Top ten common shareholders conducting securities margintrading(ifany)||||N/A||||||

Neither thetop 10common shareholders nor thetop 10shareholders holding shares notsubject to trading moratorium of theCompany had conducted the transaction of repurchase underthe
agreement during thereporting period.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 2.Particulars aboutthecontrolling shareholder
Nature ofthe controlling shareholders: central state-owned shareholding
Type ofthecontrolling shareholders: corporation
||||||
|-|-|-|-|-|
|Nameofcontrollingshareholder|Legalrepresentative/companyprincipal|Dateofestablishment|Organizationcode|Businessscope|
|ChinaMerchantsPortHoldingsCompanyLimited|LiXiaopeng|28May1991|14602056-000-05-16-0|Portservices,bondedlogisticandcoldchainservices,propertydevelopmentandinvestment|
|Equitiesheldbythecontrollingshareholderinotherlistedcompaniesathomeoroverseasbyholdingorshareholdingduringthereportingperiod|CMPortholds:24.05%sharesofShanghaiInternationalPort(Group)Co.,Ltd.;24.53%sharesofChinaInternationalMarineContainers(Group)Co.,Ltd.;21.05%sharesofDalianPort(PDA)CompanyLimited;3.50%sharesofNingboPortCo.,Ltd.;and3.21%sharesofQingdaoPortInternationalCo.,Ltd.||||

There was nochange ofthe controllingshareholders oftheCompany during thereporting period. 3.Particulars abouttheactual controller
Nature ofthe actual controller: central state-owned assets management institutions
Type oftheactual controller: corporation
||||||
|-|-|-|-|-|
|Nameoftheactualcontroller|Legalrepresentative/companyprincipal|Dateofestablishment|Organizationcode|Businessscope|
|ChinaMerchantsGroup|LiJianhong|14Oct.1986|10000522-0|Leaseandagencyofwater/landpassenger-cargotransportation,water/landconveyanceandfacilities;investmentandmanagementofportandstoragebusiness;salvage,refloatationandtugboat;industrialproduction;construction,repairing,checkingandmarketingofshipping,offshorepetroleumdrillingequipment;repairingandcheckingofdrillingplatformanddrillingcontainer;overallcontractingofwater/landconstructionprojectsandtherelatedoffshorepetroleumdevelopmentprojects,andtheirconstructionorganizationandlogisticservices;procurement,supplyandsaleofwater/landcommunicationand|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||
|-|-|-|
|||transportationequipment;exportandimportbusinessoftransportation;investmentandmanagementoffinance,insurance,trust,securities,futuresbusiness;investmentandmanagementoftourism,hotels,cateringservicesandrelevantservice;realestatedevelopment,managementandconsultancyofproperty;investmentandmanagementofpetroleumandchemicalindustry;investmentandoperationofinfrastructureofcommunication;overseasassetsmanagement.DevelopmentandmanagementofShenzhenShekouIndustrialZoneandFujianZhangzhouDevelopmentZone.|
|Equitiesoftheotherlistedcompaniesathomeoroverseascontrolledbytheactualcontrollerduringthereportingperiod|ChinaMerchantsGroupholds:76.13%sharesofChinaMerchantsShekouIndustrialZoneHoldingsCo.,Ltd.;74.35%sharesofChinaMerchantsLandLimited;50.86%sharesofChinaMerchantsSecuritiesCo.Ltd.;47.38%sharesofChinaMerchantsEnergyShippingCo.,Ltd.;27.85%sharesofChinaMerchantsBankCo.,Ltd.;68.75%sharesofSinotransShippingLtd.;55.75%sharesofSinotransLimited;60.95%sharesofSinotransAirTransportationDevelopmentCo.,Ltd.;and26.82%sharesofHuabeiExpresswayCo.,Ltd.||

There was nochange ofthe actual controller oftheCompany during the reporting period.
The ownership and controllingrelationship between theactual controllerof theCompany and the Company is detailed as follows:
State-OwnedAssetsSupervisionandAdministrationCommissionoftheState
100%
ChinaMerchantsGroup
54.78%
ChinaMerchantsPortHoldings
CompanyLimited
Entrustedto
manage
32.52% 100% 100% 37.02%
sharesheld
MalaiStorage
KeenField
CND
byCND
Group
Group 25% 8.58% 32.52%
14.58%
PublicShare
A
ShenzhenChiwanWharfHoldingsLimited
PublicShare
19.32%
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited The actual controllercontrols the Companyviatrust or otherways of asset management
□Applicable√ Inapplicable
4.10%or greatercorporate shareholders
||||||
|-|-|-|-|-|
|Nameofcorporateshareholder|Legalrepresentative/companyprincipal|Dateofestablishment|Registeredcapital|Businessscopeormanagementactivities|
|ChinaNanshanDevelopment(Group)Inc.|WangZhixian|28Sept.1982|RMB900million|Landdevelopment,porttransportation,relatedmanufacture,commerce,realestate,tourism,bondedyardsandwarehouses,etc.|
|ShenzhenMalaiStorageCo.,Ltd.|ShiWei|14Sept.2006|HKD30million|Logisticsinformationconsultingforgoods,relatedtechnicalservice,warehousingprojects(inpreparation)|

 5. Limitations on shareholding decrease by theCompany’s controlling shareholder, actual controller, reorganizer andother commitment makers
□Applicable√ Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section VII. Preference Shares
□Applicable√ Inapplicable
No preferenceshares during reporting period
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section VIII. Directors, Supervisors, Senior Management Staff& Employees I. Changes inshareholding ofdirectors, supervisors and seniormanagement staff
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Name|Officetitle|Current/former|Sex|Age|Startingandendingdatesofofficeterm|Sharesheldattheperiod-begin(share)|Increasedsharesoftheperiod(share)|Decreasedsharesoftheperiod(share)|Otherincrease/decrease(share)|Sharesheldattheperiod-end(share)|
|ShiWei|ChairmanoftheBoard|Current|Female|53|Jan.2016–May2017|0|0|0|0|0|
|LuShengzhou|Director|Current|Male|52|Jan.2016–May2017|0|0|0|0|0|
|LiYubin|Director|Current|Male|45|May2014–May2017|0|0|0|0|0|
|PanKe|Director|Current|Male|39|Nov.2015–May2017|0|0|0|0|0|
|QuJiandong|Director|Current|Male|52|Jan.2016–May2017|112,544|0|0|0|112,544|
|ZhangJianguo|Director|Current|Male|52|May2014–May2017|74,282|0|0|0|74,282|
|YuanYuhui|IndependentDirector|Current|Male|66|Aug.2015–May2017|14,040|0|0|0|14,040|
|SuQiyun|IndependentDirector|Current|Male|53|May2014–May2017|0|0|0|0|0|
|LiChangqing|IndependentDirector|Current|Male|49|May2014–May2017|0|0|0|0|0|
|YuShixin|SupervisoryBoardChairman|Current|Male|54|Nov.2015–May2017|0|0|0|0|0|
|WenLing|Supervisor|Current|Female|52|May2014–May2017|0|0|0|0|0|
|ZhaoJianli|Supervisor|Current|Female|53|May2014–May2017|0|0|0|0|0|
|NiKeqin|Supervisor|Current|Female|52|May2014–May2017|29,211|0|0|0|29,211|
|ZhengLinwei|Supervisor|Current|Male|46|May2014–May2017|0|0|0|0|0|
|ZhaoQiang|GeneralManager|Current|Male|55|May2014–May2017|15,103|0|0|0|15,103|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|NieQi|ViceGeneralManager|Current|Male|54|May2014–May2017||85,409|3,000|750|0|87,659|
|ZhaoChaoxiong|ViceGeneralManager|Current|Male|51|May2014–May2017||64,954|0|0|0|64,954|
|WangYongli|ViceGeneralManagerandBoardSecretary|Current|Male|49|May2014–May2017||4,985|0|0|0|4,985|
|LinCong|ViceGeneralManager|Current|Male|58|Aug.2016–May2017||0|0|0|0|0|
|ZhangFang|CFO|Current|Male|52|May2014–May2017||3,267|0|0|0|3,267|
|Total|--|--|--|--|--|--|403,795|3,000|7,500|0|406,045|

 II. Changes indirectors, supervisors and seniormanagement staff
□Applicable√ Inapplicable
III. Particulars aboutimportant personnel
The professional background, major working experience and the current main duty of the Company ofthe current Directors, Supervisors and SeniorExecutives
Board Chairman Ms. Shi Wei graduated from Anhui University with amaster’s degree of International Economics, and obtained a Master Degree of Executive Master of Business Management of Cheung Kong Graduate School of Business, and now acts as an executive director and vice general manager in China Merchants Port Holdings Company Limited. Ms. Shi has over 20 years' experience in the field of Maritime and Port and Transportation Management and she successively held the post of Head of Legal Section of Transport Management Bureau of Shenzhen Municipality, Vice Commissioner of Shenzhen Highway Management Bureau, the Commissioner of Western Transportation of Transport Commission of Shenzhen Municipality, Deputy inspector of Transport Commission of Shenzhen Municipality. She has been acting as the Chairman of the Company since Jan. 2016uptonow.
Director Mr. Lu Shengzhou graduated from Zhongnan University of Economics and Law with a Master Degree of National Economics, and now acts as the Chief Financial Officer of China Merchants Port Holdings Company Limited. Mr. Lu has over 20 years' experience in Finance management and he successively held the post of Head of Finance Department of China Merchants Shekou Industrial Zone Holdings Co., Ltd., Assistant to General Manager and Officer of Finance Department of China Merchants Group Ltd., Chief Financial Officer of Hong Kong Ming Wah Shipping Co., Ltd., Deputy General Manager of Finance Department of China Merchants Group Ltd. He has been acting as the Director oftheCompany sinceJan. 2016upto now.
Director Mr. Li Yubin graduated from Tianjin University with abachelor’s degree in port& sea-
route engineering and a master degree in engineering management, and graduated in 2007 from the
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited University of Hong Kong with a Doctorate in real estate and construction. He has rich experience in port construction& operation and logistics management. Joining in China Merchants Port Holdings Company Limited in 2007, he was once an assistant to the GMs of theR&D Department, the Overseas Operation Department and the Planning& Business Department, as well as the GM of the Strategy and Operations Management Department of China Merchants Port Holdings Company Limited, and a Deputy GM and then the GM of China Merchants Bonded Logistics Co., Ltd. He is now a Vice GM in China Merchants Port Holdings Company Limited. And he has been a Director ofthe Company sinceJan. 2013.
Director Mr. Pan Ke received abachelor’s degree in management information system from Dongbei University of Finance and Economics and amaster’s degree of logistics engineering from Dalian Maritime University and now acts as the GM of the Purser Department and GM of the Administration Division of the western port of China Merchants Port Holdings Company Limited. And he was once the Deputy GM of the Operation Department of Shenzhen Chiwan Port Container Co., Ltd., Deputy GM of the Container Department of the harbor service headquarters of Shenzhen Chiwan Wharf Holdings Limited, Logistics GM, General Manager Assistant and Deputy General Manager of Chiwan Container Terminal Co., Ltd., and as the Deputy GM of Shenzhen Chiwan Wharf Holdings Limited from Oct. 2012 to Mar. 2014. And he has been a Director of the Company since Nov. 2015.
Director Mr. Qu Jiandong graduated from the shipping and logistics from the Hong Kong Polytechnic University and received themaster’s degree and now acts as a Vice President of Zhanjiang Port (Group) Co., Ltd. He was once the Deputy GM, Standing Deputy General Manager and GM of Shenzhen Chiwan Port Container Co., Ltd., Deputy GM and GM of Chiwan Container Terminal Co., Ltd. and Deputy GM of the Company. And he has been a Director of the Company since Jan. 2016.
Director Mr. Zhang Jianguo graduated from Shanxi Finance& Economics Institute in accounting with abachelor’s degree in economics. Financial Manager of the Company since 1997, Chief Financial Officer of the Company from Sept. 1999 to 31 Dec. 2012, and Vice GM of the Company from Feb. 2011 to 31 Dec. 2012. He is now the CFO of CND Group. And he has been a Director of the Companysince Jan. 2013.
Independent Director Mr. Yuan Yuhui, MBA, once acted as the Vice GM, Vice Director of CND Group and the Director of the Company. And now acts as the Director of Shenzhen Riland Industrial Co., Ltd. and the Independent Director of Beijing Mainstreets Investment Group Co., Ltd. And hehas been an Independent Director oftheCompany sinceAug. 2015.
Independent Director Mr. Su Qiyun graduated from Xiamen University of Department of Law with a master degree of Civil and Commercial Law and a doctor degree of Wuhan University of Law. He used to serve as Manager of Investment Department of Ping An Insurance Company of China, as Cadres of Shenzhen Industry and Commerce Administration and now is founding partner of Beijing Deheng Law Office. And he has been an Independent Director of the Company since May 2014.
Independent Director Mr. Li Changqing graduated from Xiamen University with a doctor degree of Accounting, and also is a CPA, an excellent talent of new century of Ministry of Department, a prominent talent of Xiamen as well as a guide tutor of Postdoctoral Center of SSE. He now is Department Head of Accounting of Xiamen University, professor and doctoral supervisor. And he has been an Independent Director of theCompanysince May 2014.
Supervisory Board Chairman Mr. Yu Shixin graduated from Zhengzhou University, University of International Business and Economics and China-EU Business School of Management and
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited successively received thebachelor’s degree of English,master’s degree of economics and MBA. Mr. Yu possesses over 20years’ abundant management experience of the transportation industry and had successively acted as the Deputy GM and GM of China Communications Import& Export Corporation, Deputy GM of Hong Kong Haitong Company, Director and GM of China Merchants Bonded Logistics Co., Ltd., Deputy GM of China Merchants Port Holdings Company Limited and now acts as the Deputy GM of Hong Kong Haitong Company. And he acted as the Director of Shenzhen Chiwan Wharf Holdings Limited from May– Oct. 2015 and acts as the Supervisory Board Chairman ofthe Companyfrom Nov. 2015tillnow.
Supervisor Ms. Wen Ling graduated from Southwestern University of Finance and Economics with a postgraduate degree. She was once the Deputy Financial Manager of China Merchants Port Service (Shenzhen) Co., Ltd., the Financial Manager of Shenzhen Mawan Port Services Co., Ltd. and the Vice Financial Manager and Senior Vice Financial Manager of China Merchants Port Holdings Company Limited. Joining China Merchants Port Holdings Company Limited in 2004, she is now the Capital Operation GM of China Merchants Port Holdings Company Limited. And shehas been a supervisor oftheCompany sinceJan. 2013.
Supervisor Ms. Zhao Jianli has abachelor’s degree in transportation management engineering and amaster’s degree in financial management ofXi’an Highway Institute. She was once the internal control and audit manager, an assistant to the GM and a Deputy GM of China Merchants Port Holdings Company Limited. Joining China Merchants Port Holdings Company Limited in Sept. 2003, she is now the internal control and audit GM of China Merchants Port Holdings Company Limited.And she has been asupervisorof theCompany sinceJan. 2013.
Supervisor Ms. Ni Keqin, joined Chiwan Container Terminal Co., Ltd. in May 1993 and took the positions of Manager Assistant, Deputy Manager as well as Manager of the Operation Department and GM Assistant of CCT successively. Currently, Deputy GM of CCT and Supervisor of the Company since May 2008.
Supervisor Mr. Zheng Linwei graduated from NJAU in 1992, with a bachelor degree of Agricultural Foreign Trade and graduated from Shanghai Maritime University with MBA. He used to act at the Harbor Division of the Company from Aug. 1993 since now and acted as Chairman of Operation Room of Department II of Commercial Freight of the Harbor Division of the Company, as Manager Assistant, Vice Manager, and Manager of Department II of Commercial Freight. He now serves as Vice GM of the Harbor Division, Dongguan Shenzhen Chiwan Wharf Holdings Limited and Dongguan Shenzhen Chiwan Terminal Co., Ltd. and as Manager of Department II of Commercial Freight of the Harbor Division of the Company. And he has been a Supervisor of the Company since May 2014.
General Manager Mr. Zhao Qiang got aBachelor’s Degree of Land and Chemistry from Jilin Agricultural University. Previously, he took posts of Vice GM, GM of Harbor Division of the Company, Vice GM of Chiwan Shipping (HK) Co., Ltd., and Assistant General Manager of the Company and now serves as Chairman of Dongguan Shenzhen Chiwan Wharf Holdings Limited and Dongguan Shenzhen Chiwan Terminal Co., Ltd., Vice Chairman of China Overseas Harbor Affairs (Laizhou) Co., Ltd., Director of Chiwan Wharf (HK) Co., Ltd. and Chiwan Shipping (HK) Co., Ltd. He acted as Vice GM of the Company from Feb. 2011 to Oct. 2012, and has been a GM of the Companysince Oct. 2012.
Vice GM Mr. Nie Qi graduated from Shanghai Maritime University with a master degree of Engineering and from Tsinghua University Institute of Economic Management with a graduate degree of Senior Management of Industrial and Commercial Management. He used to serve at Shekou Merchants Port Service for a long time and joined in the Company in Aug. 1997 that used to act as General Manager Assistant, Vice GM of the Harbor Division of the Company and
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Assistant General Manager of the Company. He now serves as GM of the Harbor Division of the Company and he has been aVice GM of theCompanysince May 2014.
Vice GM Mr. Zhao Chaoxiong graduated from Shanghai Maritime University with a bachelor degree of Economy and from BUAA with a master degree. Positions such as Deputy Manager and Manager of the Business Department of the Company, Vice GM of the Harbor Division of the Company since Dec. 1999. He now serves as GM of Dongguan Shenzhen Chiwan Wharf Holdings Limited and Dongguan Shenzhen Chiwan Terminal Co., Ltd. He acted as Supervisor of the Company since Aug. 2009to May 2014and serves as Vice GM of theCompany sinceMay 2014. Vice GM and Company Secretary Mr. Wang Yongli graduated from Tianjin University with abachelor’s degree in engineering and is a senior economist. Positions such as Business Executive, Vice Manager, Manager of Operation Department of the Company since Oct. 2002. And he has been a Vice GM of the Company since May 2014 and a Board Secretary of the Company since Aug. 2015.
Vice GM Mr. Lin Cong graduated from Wuhan Institute of Water Transportation Engineering with abachelor’s degree in engineering (port machinery design and manufacturing) and is a senior engineer. He has over three decades of experience in operation and management of port enterprises. He was once the Technical Safety Superintendent and a Vice GM of Huangpu Port Container Terminal Co., Ltd. under the Ministry of Transport, a Vice GM of Shenzhen Yantian Port Affairs Co., Ltd., the Operation Manager and western port project director of Yantian International Container Terminals Co., Ltd., a Standing Vice GM of Shenzhen Yantian Western Terminal Co., Ltd., a Vice GM of China Merchants International Terminal (Qingdao) Company Ltd., a Standing Vice GM of China Merchants International Container Terminal (Qingdao) Co., Ltd., the GM of the SafetyCommittee’s Office of China Merchants Port Holdings Company Limited, a President Assistant and Vice President of Zhanjiang Port (Group) Co., Ltd., and the GM of Zhanjiang Port China Shipping Container Terminal Co., Ltd. And he has been a Vice GM of the Company since Aug. 2016.
CFO Mr. Zhang Fang graduated fromXi’an Highway Institute with abachelor’s degree in finance and accounting of transportation. Joining the Company in Mar. 1996, he was once the Financial Manager of Shenzhen Chiwan Transportation Co., Ltd., Shenzhen Chiwan Harbor Container Co., Ltd. and Chiwan Container Terminal Co., Ltd. He has been theCFO oftheCompany sinceJan. 2013.
Concurrent positionsin shareholding entities
||||||
|-|-|-|-|-|
|Name|Shareholdingentity|Positioninshareholdingentity|Termofoffice|Remunerationorallowancefromshareholdingentity(Yes/No)|
|ShiWei|ChinaMerchantsPortHoldingsCompanyLimited|ViceGM&ExecutiveDirector|Oct.2015-now|Yes|
||ShenzhenMalaiStorageCo.,Ltd.|BoardChairman|May2016-now|No|
|LuShengzhou|ChinaMerchantsPortHoldingsCompanyLimited|CFO|Oct.2015-now|Yes|
||ShenzhenMalaiStorageCo.,Ltd.|Director|May2016-now|No|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||||
|-|-|-|-|-|
|LiYubin|ChinaMerchantsPortHoldingsCompanyLimited|ViceGM|Nov.2016-now|Yes|
|PanKe|ChinaMerchantsPortHoldingsCompanyLimited|AdministrativeGM|Feb.2016-now|Yes|
|||WesternPortAffairsGM|Mar.2014-now||
||ShenzhenMalaiStorageCo.,Ltd.|Director|May2016-now|No|
|ZhangJianguo|ChinaNanshanDevelopment(Group)Inc.|ViceGM|Feb.2015-now|Yes|
|||CFO|Jan.2013-now||
|WenLing|ChinaMerchantsPortHoldingsCompanyLimited|CapitalOperationGM|May2016-now|Yes|
|ZhaoJianli|ChinaMerchantsPortHoldingsCompanyLimited|InternalControl&AuditGM|Jun.2010-now|Yes|
||ShenzhenMalaiStorageCo.,Ltd.|Supervisor|Mar.2013-now|No|

 Concurrent positionsin other entities
||||||
|-|-|-|-|-|
|Name|Otherentity|Positioninotherentity|Termofoffice|Remunerationorallowancefromotherentity(Yes/No)|
|ShiWei|ShekouContainerTerminalsLtd.|Director|May2016-now|No|
||ShenzhenLianyunjieContainerTerminalsCo.,Ltd.|Director|Oct.2016-now|No|
||AnxunjieContainerTerminals(Shenzhen)Co.,Ltd.|Director|May2016-now|No|
||AnyunjieTerminalDepot(Shenzhen)Co.,Ltd.|Director|May2016-now|No|
||ChinaMerchantsInternational(China)InvestmentCo.,Ltd.|Director|May2016-now|No|
|LuShengzhou|ShekouContainerTerminalsLtd.|Director|May2016-now|No|
||ShenzhenLianyunjieContainerTerminalsCo.,Ltd.|Director|Oct.2016-now|No|
||AnxunjieContainerTerminals(Shenzhen)Co.,Ltd.|Director|May2016-now|No|
||AnyunjieTerminalDepot(Shenzhen)Co.,Ltd.|Director|May2016-now|No|
||ShenzhenLianyongtongTerminalCo.,Ltd.|Director|Dec.2016-now|No|
||ShanghaiInternationalPort(Group)Co.,Ltd.|Supervisor|Mar.2016-now|No|
||NingboDaxieChinaMerchantsInternationalTerminalsCo.,Ltd.|Director|Mar.2016-now|No|
||ChinaMerchantsInternationalTerminal(Qingdao)CompanyLtd.|Director|Oct.2016-now|No|
||ChinaMerchantsInternationalContainerTerminal|Director|Oct.2016-now|No|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||||
|-|-|-|-|-|
||(Qingdao)Co.,Ltd.||||
||QingdaoQianwanUnitedContainerTerminalCo.,Ltd.|Director|Mar.2016-now|No|
||QingdaoQianwanUnitedAdvanceContainerTerminalCo.,Ltd|Director|Mar.2016-now|No|
||ChinaInternationalMarineContainers(Group)Co.,Ltd.|Supervisor|Oct.2016-now|No|
||ChinaNanshanDevelopment(Group)Inc.|SupervisoryBoardChairman|Apr.2016-now|No|
||ChinaMerchantsBondedLogisticsCo.,Ltd.|Director|Mar.2016-now|No|
||ShenzhenJinYuRongTaiInvestment&DevelopmentCo.,Ltd.|Director|Jun.2016-now|No|
|LiYubin|AsiaAirfreightTerminalCompanyLimited|Director|Apr.2014-now|No|
||ModernTerminalsLimited|Director|Mar.2015-now|No|
||ShekouContainerTerminalsLtd.|Director|Aug.2012-now|No|
||ShenzhenLianyunjieContainerTerminalsCo.,Ltd.|Director|Sept.2012-now|No|
||AnxunjieContainerTerminals(Shenzhen)Co.,Ltd.|Director|Sept.2012-now|No|
||AnyunjieTerminalDepot(Shenzhen)Co.,Ltd.|Director|Sept.2012-now|No|
||ShenzhenLianyongtongTerminalCo.,Ltd.|Director|Jan.2014-now|No|
||ShenzhenMawanWharfCo.,Ltd.|Director|Sept.2012-now|No|
||GuangdongYidePortCo.,Ltd.|Supervisor|Mar.2014-now|No|
||ZhangzhouChinaMerchantsPortCo.,Ltd.|Director|Oct.2014-now|No|
||ChinaMerchantsInternationalTerminal(Qingdao)CompanyLtd.|ViceBoardChairman|Oct.2016-now|No|
||ColomboInternationalContainerTerminalsLimited|Director|Aug.2012-now|No|
||ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd.|Director|Apr.2012-now|No|
||ChinaMerchantsBondedLogisticsCo.,Ltd.|ViceBoardChairman|Feb.2016-now|No|
||ShenzhenQianhaiwanDepotCo.,Ltd.|ViceBoardChairman|Aug.2012-now|No|
||JuzhongzhiInvestment(Shenzhen)Co.,Ltd.|ViceBoardChairman|Dec.2015-now|No|
||SilkRoadE-MerchantsInformationTechnologiesCo.,Ltd.|Supervisor|Mar.2016-now|No|
|PanKe|ShekouContainerTerminalsLtd.|Director|Dec.2015-now|No|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||||
|-|-|-|-|-|
||ShenzhenLianyunjieContainerTerminalsCo.,Ltd.|Director|Dec.2015-now|No|
||AnxunjieContainerTerminals(Shenzhen)Co.,Ltd.|Director|Mar.2016-now|No|
||AnyunjieTerminalDepot(Shenzhen)Co.,Ltd.|Director|May2016-now|No|
||ChiwanContainerTerminalCo.,Ltd.|Director|Jul.2013-now|No|
||ShenzhenMawanPortServiceCo.,Ltd.|Director|Feb.2016-now|No|
||ShenzhenMawanGodown&WharfCo.,Ltd.|Director|Feb.2016-now|No|
||ShenzhenMawanWharfCo.,Ltd.|Director|Feb.2016-now|No|
||ChinaMerchantsPortService(Shenzhen)Co.,Ltd.|Director|Feb.2016-now|No|
||ShenzhenHaixingHarborDevelopmentCo.,Ltd.|Director|Oct.2015-now|No|
||ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd.|Director|Mar.2013-now|No|
||ChinaMerchantsBondedLogisticsCo.,Ltd.|Director|Mar.2016-now|No|
|QuJiandong|ZhangjiangPort(Group)Co.,Ltd.||Sept.2016-now|No|
|||VicePresident|||
||||Dec.2016-now|No|
||ZhanjiangPortInternationalContainerTerminalCo.,||||
|||Director|||
||Ltd.||||
|YuShixin|HongKongHaitongCo.,Ltd.|StandingViceGM|Jan.2016-now|Yes|
|WenLing|ChinaMerchantsPortService(Shenzhen)Co.,Ltd.|Supervisor|Mar.2008-now|No|
||ZhangjiangPort(Group)Co.,Ltd.|ViceSupervisoryBoardChairman|Nov.2007-now|No|
||ShenzhenHaiqinEngineering Supervision&ManagementCo.,Ltd.|Supervisor|Sept2012-now|No|
||ChinaMerchantsPortDevelopment(Shenzhen)Co.,Ltd.|Supervisor|Sept.2016-now|No|
|ZhaoJianli|ShekouContainerTerminalsLtd.|Director|Sept.2013-now|No|
||ShenzhenLianyunjieContainerTerminalsCo.,Ltd.|Director|May2013-now|No|
||AnxunjieContainerTerminals(Shenzhen)Co.,Ltd.|Director|May2013-now|No|
||AnyunjieTerminalDepot(Shenzhen)Co.,Ltd.|Director|May2013-now|No|
||ShenzhenLianyongtongTerminalCo.,Ltd.|Supervisor|Jan.2014-now|No|
||AntongjieTerminalDepot(Shenzhen)Co.,Ltd.|Supervisor|Feb.2014-now|No|
||AnsujieTerminalDepot(Shenzhen)Co.,Ltd.|Supervisor|Mar.2014-now|No|
||ShenzhenMawanWharfCo.,Ltd.|Director|Apr.2013-now|No|
||ChinaMerchantsPortService(Shenzhen)Co.,Ltd.|Director|Apr.2010-now|No|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||||
|-|-|-|-|-|
||ChinaMerchantsInternationalTerminal(Qingdao)CompanyLtd.|Supervisor|Oct.2016-now|No|
||ChinaMerchantsInternationalContainerTerminal(Qingdao)Co.,Ltd.|Supervisor|Mar.2016-now|No|
||ChinaMerchantsBondedLogisticsCo.,Ltd.|Supervisor|Mar.2016-now|No|
||GrainElectronicTradeCenterofChinaGrainMerchantsGroup(Shenzhen)|Supervisor|Aug.2014-now|No|
||ShenzhenJinYuRongTaiInvestment&DevelopmentCo.,Ltd.|Supervisor|Jun.2016-now|No|
|ZhangJianguo|ChinaDevelopmentFinanceCo.,Ltd.|ViceBoardChairman|Dec.2012-now|No|
||ShenzhenChiwanPetroleumSupplyBaseCo.,Ltd.|Director|Jul.2016-now|No|
||ShenzhenNewNanshanHolding(Group)Co.,Ltd.|ViceBoardChairman|Aug.2015-now|No|

List of the penalty by the securities supervision agencies of the recent 3 years of the current and the Directors, Supervisors and SeniorExecutives left during thereporting period ofthe Company□Applicable√ Inapplicable
IV.Remuneration fordirectors, supervisors andseniormanagement
Decision-making procedure, determining basis and actual payment for the remuneration of directors, supervisors and senior management
(1) Decision-making procedure for the remuneration of directors, supervisors and senior management:
Remunerations for theCompany’s directors, supervisors and senior management shall be nominated by the Board of Directors and determined upon review of the Remuneration and Appraisal Committee. Allowance for Independent Directors is RMB100,000/year (tax included), which has been approvedat the2013Annual General Meeting
(2) Determining basis for theremuneration of directors, supervisors and senior management
The modes and amounts of the remuneration for directors, supervisors and senior management are determined according to the market levels with the post value, responsibilities, etc. taken into account.
(3) Actual payment forthe remuneration ofdirectors, supervisors and seniormanagement:
Salaries and independent director allowances were paid to directors, supervisors and senior executives on a monthly basis. And the other bonuses were paid all at one time according to the performance of each ofthem.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Remuneration of the directors, supervisors and senior management of the Company during the reporting period
Unit:RMB’0,000
||||||||
|-|-|-|-|-|-|-|
|Name|Position|Gender|Age|Current/former|Totalbefore-taxremunerationgainedfromtheCompany|WhethergainedremunerationfromtherelatedpartiesoftheCompany|
|ShiWei|ChairmanoftheBoard|Female|53|Current|0|Yes|
|LuShengzhou|Director|Male|52|Current|0|Yes|
|LiYubin|Director|Male|45|Current|0|Yes|
|PanKe|Director|Male|39|Current|0|Yes|
|QuJiandong|Director|Male|52|Current|122|No|
|ZhangJianguo|Director|Male|52|Current|0|Yes|
|YuanYuhui|Independentdirector|Male|66|Current|10|No|
|SuQiyun|Independentdirector|Male|53|Current|10|No|
|LiChangqing|Independentdirector|Male|49|Current|10|No|
|YuShixin|SupervisoryBoardChairman|Male|54|Current|0|No|
|WenLing|Supervisor|Female|52|Current|0|Yes|
|ZhaoJianli|Supervisor|Female|53|Current|0|Yes|
|NiKeqin|Supervisor|Female|52|Current|110|No|
|ZhengLinwei|Supervisor|Male|46|Current|96|No|
|ZhaoQiang|GM|Male|55|Current|140|No|
|NieQi|ViceGM|Male|54|Current|111|No|
|ZhaoChaoxiong|ViceGM|Male|51|Current|112|No|
|WangYongli|ViceGM&CompanySecretary|Male|49|Current|112|No|
|LinCong|ViceGM|Male|58|Current|16|No|
|ZhangFang|CFO|Male|52|Current|99|No|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||||||
|-|-|-|-|-|-|-|
|Total|--|--|--|--|948|--|

 Situations of equity incentives awarded to the directors, supervisors and senior management of the Company during the reporting period
□Applicable√ Inapplicable
V. Aboutemployees
1.Number, functionsand educationalbackgrounds ofemployees
|||
|-|-|
|Numberofin-serviceemployeesoftheCompany|400|
|Numberofin-serviceemployeesofmainsubsidiaries|1,015|
|Totalnumberofin-serviceemployees|1,415|
|Totalnumberofemployeeswithremunerationincurrentperiod|1,415|
|NumberofretireestowhomtheCompanyoritsmainsubsidiariesneedtopayretirementpension|0|
|Functions||
|Function|Numberofemployees|
|Production|694|
|Sales|49|
|Technical|466|
|Financial|68|
|Administrative|138|
|Total|1,415|
|Educationalbackgrounds||
|Educationalbackground|Numberofemployees|
|Masterandabove|33|
|Bachelor|300|
|College|388|
|Technicalsecondaryschool|163|
|Belowabove|531|
|Total|1,415|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 2.Employee remuneration policy
The Company set remuneration system of the employees in line with the post setting, job grade and the market pay level determine remuneration in term with the principle of "Salary based on the related post ".
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 3.Employee trainingplans
The integration of employee training and strategy was accord with the demand of the Company's long term development, while considering the business demand of the Company and personal development, the Company organized Internal training and open classes aiming at different levels and post,followed upandevaluated thetraining results.
4.Laboroutsourcing
□Applicable√ Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section IX. Corporate Governance
I. Basicdetails ofcorporate governance
Ever since its establishment, the Company has been in strict compliance with the company law and securities law, as well as relevant laws and regulations issued by CSRC. And it has timely formulated and amended its relevant management rules according to the Code of Corporate Governance for Listed Companies, which are conscientiously and carefully executed. An effective system of internal control has thus taken shape in the Company. Details aboutcorporategovernance within thereportingperiod are set outasbelow:
1.Wedeveloped thespecial project of“theBlue Sky Action”toprotect investors
To carry out and implement the key spirit of Mr. Xijinping, the GeneralSecretary’s speech about speeding up the formation of the stock market whereinvestors’ rights and interests can be fully protected, the requirements from the Opinion of the General Office of the State Council on Further Enhancing the Lawful Rights and Interests of Medium and Small Investors in the Capital Market (GBF[2013] NO.110) as well as the spirit of the Y2016 Conference of Supervision Work for National Securities and Futures, and on the basis of the Notice of Shenzhen Securities Regulatory Commission on Developing the Special Project of “the Blue Sky Action” to Protect Investors (SZJF〔2016〕NO.15) (named as the Notice thereafter), we developed the special project of “the Blue SkyAction” toprotect investors with details as below:
(1) We sustainably perfected systems and standardized processes. We would persistently keep a watchful eye on new laws and regulations, organized our internal processes, and sustainably revised and perfected related systems and processes as well as kept the standardability on the basis of work demands, and rules ofmanagement and control.
(2) We strictly prevented insider trading. We have always been attaching importance to the prevention and control against insider trading. We strictly executed the Management System on Inside Information and Insiders, and would continue to try efforts in related work covering the registration ofinsideinformation, as well as theprevention and control against insidertrading. (3) We made a serious commitment to information disclosure. Strictly based on laws, regulations, and related systems, we faced all our investors in openness, fairness, and impartiality. We would continue to discloseinformation seriously, objectively, andjustly.
(4) We kept good relationship with investors. Over the years, we preserved in the culture of managing good investor relations, valued the protection ofinvestors’ rights and interests, kept smooth communication with investors throughshareholders’ general meetings, the SZSE EasyIR platform, email and phone consultation, daily reception forinvestors’ visits, as well as the participation ininvestors’ meetings, etc., and also ensured the consistent and equal treatment to all investors. We severely practiced theInvestors’ Management System of the Company in communication with investors.
In order to further enhance the management on investor relations, strengthen the communication with the vast investors, practically improve the transparency and governance of the listed Company,
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited as well as positively response the Shenzhen Securities RegulatoryCommission’s call of developing the special project of “the Blue Sky Action” to protect investors, we announced the Announcement on Holding the Internet Reception for Investors (Announcement number: 2016-046)on 28Oct 2016. We held the internet reception for investors via network communication on the IR investor interaction platform of Shenzhen Stock Exchange (website linkage: http://irm.p5w.net) on 2 Nov 2016. Board Chairmen Ms. Shi Wei, General Manager Mr. Zhao Qiang, Deputy General Manger (Concurrently as the Board Secretary) Mr. Wang Yongli were present at the reception meeting, where they communicated with investors about the concerned issues. For details of the reception, please refer to the Announcement on Details of the Internet Reception for Investors (Announcement number: 2016-047) on 3 Nov 2016. We would keep good investor relations management and constantly improve ourservice to investors as well as enhance the management oninvestor relations, ensure the smooth service channels for investors in aspects of the investors service call, thewebsite’s investors relation column, etc., and update related announcements in our official website in time.
(5) We kept steady profit distribution policy to pay shareholders back. We have always been keeping faith with the culture and concept about stock equity as repaying the society and shareholders, for which we have practically implemented for years by maintaining the cash bonus rate around50%-60% every year, not to mention our good investors relation management over the years. We have refinanced for about RMB 0.37 billion in the capital market, and distributed cash dividends of about RMB 4.43 billion since we went public in 1993. We would stick on and further intensify the consciousness of paying shareholders back, and positively pay back shareholders through stable dividends in strict accordance with the rules in the Company Law and the Articles of Association as well as onthebasis of ouractual situation.
Through positive conduction of the aforesaid special work, we formulated the special mechanism for protecting investors suitable for our development, which required us to stick to the consciousness of protecting investors in daily work, continue to highly value the investors protection work, keep perfecting our behaviors of protecting investors, as well as guide investors to build rational investment concept, improve risk awareness and self-protection capability. We would continue to keep firm operation, make hard efforts to information disclosure, inside information management, as well as investors relation maintenance and protection, build a good company image, keep steady profit distribution policy, better improve our standard operation level, and share ourgrowth and development with theinvestors.
2. Shareholders andshareholders’ general meeting: the Company ensures that all the shareholders, especially minority shareholders, are equal and could enjoy their full rights. The Company called and heldshareholders’ general meeting strictly in compliance with the Rules forShareholders’ General Meeting.
3. Relationship between the controlling shareholder and the Company: controlling shareholder of the Company acted in line with rules during the reporting period, did not intervened the decisions, productions or operations of the Company directly or indirectly in exceeding the authority of theshareholders’ general meeting, and did notappropriateany funds ofthe Company.
4. Directors and the Board of Directors: the Company elected directors in strict accordance with the Articles of Association. Number and composition of members of the Board were in compliance
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited with relevant laws and regulations; all Directors attend Board meetings andshareholders’ general meeting in a serious and responsible manner and participated enthusiastically relevant training so as to know better about laws and regulations as well as the rights, obligations and liabilities of Directors. The Company The Company set up the Audit Committee as approved by the First SpecialShareholders’ Meeting for Y2004 and the Nomination, Remuneration and Evaluation Committee and Strategy Committee of the Board as approved by the Annual General Meeting for Y2005, with a view to ensuring the efficient operation and scientific decision-making of the Board ofDirectors.
5. Supervisors and the Supervisory Board: number and composition of the members of the Supervisory Board were in compliance with the requirements of laws and regulations. The supervisors diligently and seriously performed their duties and obligations, took responsible attitudes to all shareholders and supervised the financial affair as well as the performance by theCompany’s Directors, managers and other senior executives of their duties in compliance with the laws and regulations.
6. Stakeholders: the Company fully respected and safeguarded the legal rights and interests of the banks and other creditors, staff, customers and other stakeholders so as to develop the Company in a consistent and healthy way.
7. Information disclosure and transparency: the Company authorized the Company Secretary to take charge of information disclosure, and the Chairman as well as related Directors to meet with shareholders. The Company disclosed relevant information in a true, accurate, complete and timely way in strict accordance with the requirements of laws, regulations and the Articles of Association, formulated the Management Rules on Information Disclosure, the Management System on Inside Information and Insiders and the Rules on the Management of Investors Relations, and designated Securities Times, Ta Kung Pao and http://www.cninfo.com.cn as its newspaper and website for information disclosure, so as to ensure all shareholders have equal opportunity to obtain the information.
8.Corporate governance mechanisms and rules that theCompany already established:
Articles of Association of the Company, Rules of Procedure for General Meetings, Working Articles of Audit Committee of the Board of Directors, Working Rules of Annual Report for Audit Committee of the Board of Directors, Working Articles for Nomination, Remuneration and Evaluation Committee of the Board of Directors; Working Articles of Strategy Committee of the Board of Directors, Working System for Independent Directors, Working Rules of Annual Report for Independent Directors, Rules of Procedure for Supervisory Board, Working Articles of General Manager, Management System for Company Shares held by Directors, Supervisors and Senior Executives and Its Changes, Management System of Foreign Investment, Decision-making Mechanism of Related Transactions, Management System of Fund-raising, Management Rules on Information Disclosure, Rules of Accountability for Significant Mistakes in Annual Report Information Disclosure, Management System on Inside Information and Insiders, Internal Audit System, Management System ofInvestors’ Relations, Specific System for Engaging Accountants, Management Method of Financial Tools, Management System on Person in Charge of Finance and CFO, Information Disclosure Management Rules for the Inter-bank Debt Financing Instrument, etc.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Details for the above systems please refer to website of the Company http://www.szcwh.com. Thereisn’t difference between theactual circumstances oftheCompany andall established systems. Since the foundation, the Company was consistently in strict accordance with Company Law and relevant laws and regulations to make a standard operation, continued business-running in line with relevant requirements of Corporate Governance Principle for Listed Companies and earnestly made effort to protect profit and interests ofshareholders and stakeholders.
9.Non-compliance ofcorporate governancestandards bytheCompany
On 23 Apr. 2013, the “Proposal on Providing Undisclosed Information for the Majority Shareholder” was reviewed and approved at the 5th Special Meeting of the 7th Board of Directors for 2013. And the Company has kept a file of information insiders for management in strict accordance with the “Rules for Management of Insider Information and Information Insiders”. The aforesaid matter does not affect the independence of the Company and the Company will properly provide relevant information accordingtotheregulators’ requirements.
Any significant incompliance with the regulatory documents issued by the CSRC governing the governance oflisted companies
□Yes√ No
II. Particulars about theCompany’s separation from the controlling shareholder in respect of business, personnel, assets, organization andfinancial affairs
The Company is absolutely independent in business, personnel, assets, finance and organization from itscontrolling shareholder. Details are set outas follows.
Separation in business: The Company has its own assets, personnel, qualifications and ability to carry out operating activities and is able to operate independently in the market. Separation in personnel: The Company has basically separated its staff from its controlling shareholder. No senior management staff of the Company holds positions at controlling shareholder of the Company. Separation in assets: The Company possesses its own self-governed assets and domicile. Separation in organization: The Company has established and improved the corporate governance structure according to law and has an independent and complete organizational structure. Separation in finance: The Company has set up its own financial department as well as normative accounting system and the financial management system on its subsidiaries. The Company has its own bank accounts and does not share the same bank account with its controlling shareholder. The Company has been paying tax in accordance with thelaws and regulations onitsown behalf.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited III. Horizontal competition
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|Typeofthequestion|Nameofshareholders|Cause|Methods|Workprogressandfollow-upplans|
|Horizontalcompetition|CMPort*|Mainly was thehistorical reason,comparatively,cooperation morethan competitionbetween CMPortand the Company*|On17 Sept. 2012CMPort haspromised tocompletely solvethe horizontalcompetitionproblem throughassetreorganization,etc. in thecoming 3 to 5years.|CMPort was actively promote and discuss theresearch of solution for the horizontal competition,including independence of Chiwan Wharf, furtherreinforce the stable developmentof the westport inShenzhen, enhance strategic synergy effect andendeavor to focus on the equity of shareholder ofthe Company. The Company timely and activelycommunicated with CMPort and performinformation disclosure obligation in term of thestipulation of the existing relevant laws andregulations.|

* On 17 Sept. 2012, CMPort and CND Group signed a stock custody agreement. According to the said agreement, CND Group would entrust CMPort as a custodian with its A-shares in the Company (representing a stake of57.52%). On 27 Dec. 2012, CND Group and Malai Storage, the wholly subsidiary of CMPort, signed an equity transfer agreement. According to the said agreement, CND Group transferred its holding of 161,190,933 shares of RMB ordinary shares (Proportion of shareholding of25%) to Malai Storage. After the complement of the transfer, CMPort was entrusted to manage CND Group's holding of 209,687,067 shares of A share (Proportion of shareholding of32.52%). Meanwhile, CMPort indirectly held 55.3142 million shares of B share of the Company through its wholly subsidiary Keen Field Enterprises Limited (Proportion of shareholding of8.58%). Sofar,66.10%equity oftheCompany isunder thecontrol of CMPort.
* CMPort went public in the Stock Exchange of Hong Kong in Jul. 1992. It is mainly engaged in handling of containers and bulk cargos at ports, with the ports it invests in and manages covering Mainland China, Hong Kong, China, Southeast Asia, Africa and some other regions. Within Shenzhen, there is some horizontal competition between the Company and CMPort in the container terminal business in the port area of West Shenzhen due to historical reasons; and there is also market competition with Yantian Port and Dachanwan Port in Shenzhen. However, comparatively speaking, thanks to the coordination of the actual controller China Merchants Group, the cooperation between the Company and CMPort is greater than competition. The aforesaid management entrustment is mainly a response to the deteriorating port markets. It is a strategic move to boostCMPort’s business in ports of West Shenzhen, increase theCompany’s overall market competitiveness, keep the operation of ports of West Shenzhen in order and improve the market competitionenvironment oftheport area in WestShenzhen.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited IV. Particulars about the annualshareholders’ general meeting and specialshareholders’ general meetings heldduringthereporting period
1. Particularsabouttheshareholders’general meeting in reporting period
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|-|-|-|-|-|-|
|Session|Type|Proportionofinvestors'participation|Conveningdate|Disclosuredate|Indextothedisclosed|
|TheFirstSpecialShareholders’GeneralMeetingof2016|SpecialShareholders’GeneralMeeting|76.72%|01/22/2016|01/23/2016|Fortheresolutionannouncement(No.2016-005),seehttp://www.cninfo.com.cn|
|TheAnnualShareholders’GeneralMeeting of2015|TheAnnualShareholders’GeneralMeeting|76.43%|06/06/2016|06/07/2016|Fortheresolutionannouncement(No.2016-023),seehttp://www.cninfo.com.cn|

2. SpecialShareholders’ General Meeting applied by the preferred stockholder with restitution ofvoting right
□Applicable√ Inapplicable
V. Performance oftheIndependentDirectors
1. Particulars about the independent directors attending the board sessions and theshareholders’general meetings
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|-|-|-|-|-|-|-|
|Particularsabouttheindependentdirectorsattendingtheboardsessions|||||||
|Independentdirector|Sessionsrequiredtoattendduringthereportingperiod|Attendanceinperson|Attendancebywayoftelecommunication|Entrustedpresence(times)|Absencerate|Non-attendanceinpersonfortwoconsecutivetimes|
|YuanYuhui|6|3|3|0|0|N/A|
|SuQiyun|6|2|3|1|0|N/A|
|LiChangqing|6|3|3|0|0|N/A|
|Generalmeetingssatinonbyindependentdirectors||2|||||

Notes tonon-attendance in person fortwo consecutivetimes
Inapplicable
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 2.Particulars aboutindependentdirectors proposing objection onrelevant events
During the reporting period, no independent directors proposed any objection on relevant events of the Company.
3.Other explanationsaboutthe duty performance ofindependentdirectors
Whether advices to theCompany from independent directors were adopted ornot
√ Yes□ No
Note to advices to theCompany from independent directors were adopted ornot adopted
During the reporting period, all independent directors of the Company probity and self-discipline, fulfill their duties in line with their expertise and experience; earnestly and diligently perform their duties. The independent directors actively known about theCompany’s business and operation, protected the interests of minority shareholders, brought their roles as independent directors into full play by participating in discussions on reports reviewed at board sessions and other issues of the Company, and proposed professional suggestions on standard governance and production operation which had been adopted by the Company. They carefully reviewed and issued independent opinions in written form on significant events such as material related-party transactions in accordance with relevant requirements and had play a important role in scientific decision-making of the Board. In accordance with the requirements of CSRC and Shenzhen Stock Exchange, the “Working Rules for Independent Directors” and the “Working Rules for Independent Directors Concerning Annual Reports, they performed their obligations with due diligence and fully oversaw the preparation and disclosure of the Annual Report of the Company. For details of performance by independent directors of their duties, please refer to the work report of independent directors for 2016 as disclosed at http://www.cninfo.com.cn.
VI.Performance oftheSpecial Committees undertheBoard duringthe reporting period (I) Performance ofthe AuditCommittee of theBoard
During the reporting period, the Audit Committee of the Board in line with the requirements of CSRC and Shenzhen Stock Exchange, Articles of Association, Working Rules for the Audit Committee of the Board (“Working Rules”) and the Working Practices for the Audit Committee of the Board on Annual Report (“Working Practices”) and in term of their expertise and experience, duties and obligations endowed by the Board, earnestly perform their duties, played active role in the Company's annual audit, reviewing of financial statement, construction of internal control standard system.
1. During the reporting period, the Audit Committee of the Board held a total of five meetings, with details as follows:
(1) On 24 Mar. 2016, the First Meeting of the Audit Committee of the 8th Board of Directors for 2016 was held at 9:00 a.m. at Conference Room 2, 11/F., Chiwan Haiyun Building, Shenzhen, at which thefollowing proposals were reviewed and approvedunanimously:
1)“Internal Auditing Report oftheCompany for 2015”was reviewed and approved;
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 2)Audit Office's AuditingReport of theCompany for2015No.05-07”was reviewed and approved; 3)“Internal Auditing Planofthe Company for2016” was reviewed andapproved;
4)“WorkingReport of theAudit Committeeof theBoard in2015”was reviewed and approved; 5) “The Annual Financial Report for 2015 of the Company” was reviewed and approved and was submitted to theBoard ofDirectors of theCompany forapproval;
6) “The Financial Statements of 2015” was reviewed and approved and was submitted to the Board ofDirectors of theCompany for approval;
7) “Report on the Change of the Accounting Firm for 2016” was reviewed and approved. The Audit Committee continue employ Deloitte Touche Tohmatsu Certified Public Accountants LLP to shoulder the audit of the annual financial statements and the internal audit for 2016. This proposal was submitted to theBoard ofDirectors oftheCompany for approval.
(2) On 25 Apr. 2016, the Second Meeting of the Audit Committee of the 8th Board of Directors for 2016 was held by communication voting at which the InternalAuditing Report of the Company for the First Quarter of 2016was reviewed and approved unanimously.
(3) On 24 Aug. 2016, the Third Meeting of the Audit Committee of the 8th Board of Directors for 2016 was held at 2:00 p.m. at Conference Room 2, 11/F., Chiwan Haiyun Building, Shenzhen, at which thefollowing proposals were reviewed and approvedunanimously:
1) “The Semi-Annual Financial Report for 2016 of the Company” was reviewed and approved and was submitted to theBoard ofDirectors oftheCompany for approval;
2) “Internal Auditing Report of the Company for the Second Quarter of 2016” was reviewed and approved;
(4) On 26 Oct. 2016, the Fourth Meeting of the Audit Committee of the 8th Board of Directors for 2016 was held by communication voting at which the InternalAuditing Report of the Company for theThird Quarterof2016was reviewed and approved unanimously.
(5) On 30 Dec. 2016, the Fifth Meeting of the Audit Committee of the 8th Board of Directors for 2016 was held at 2: 00 p.m. at Conference Room 1, 8/F., Chiwan Petroleum Building, Shenzhen, at which the Report on the Company's operation and theAudit Report on theCompany’s Finance and Internal Control by Deloitte Touche Tohmatsu Certified Public Accountants LLP for 2016 were debriefed.
2. In accordance with relevant requirements of CSRC and Shenzhen Stock Exchange, the specific working rules and procedure for the Audit Committee, during the reporting period, the Audit Committee of the Board of the Company oversaw the auditing of the Annual Report of the Company for 2015withdue diligence, details of which are as follows:
(1) Before the auditors started their work, theAudit Committee discussed with the principal auditor of the accounting firm and determined, inter alia, the timing schedule for the auditing work of the financial statements for theyear.
(2) The Audit Committee expressed its audit opinions two times on the annual financial statements ofthe Company for2015.
During the reporting period, the Audit Committee expressed its audit opinions two times on the annual financial statements of the Company for 2015 in accordance with relevant requirements
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited from CSRC.
The Audit Committee reviewed the Financial Statements prepared by the Company and issued the following opinions before the Auditors started their work: the Company was in full compliance with relevant laws, regulations and the Articles of Association of the Company, the units and items of the Company's financial statements to be consolidated were complete, and the consolidation basis thereof was accurate and the information included in the Financial Statements submitted by the Company was objective, comprehensive and true. The Company's accounting policies were properly adopted and the accounting estimates made were reasonable. No significant mistake or omission has been identified so far. Due to the time-lag between this review of Financial Statements and the dates of the Auditors' Report, we suggest the Finance Department focus on and deal with subsequent events properly in accordance with the New Enterprises Accounting Standards to ensure the fairness, truthfulness and completeness oftheFinancial Statements.
After the Auditors issued their preliminary audit opinions, the Audit Committee reviewed the Financial Statements again and issued the following opinions: the Company prepared the Financial Statement in full compliance with the New Enterprise Accounting Standards and relevant provisions of the financial control system of the Company, the procedures for the preparation of the Financial Statements were reasonable and proper, which gave a true and fair view of the Company's assets, liabilities, equity interests and operation results as at 31 December 2015. Information included in the Financial Statements was objective and complete. Financial Statements for 2015 which was preliminarily audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP may besubmitted for review at the5th Meeting ofthe8thBoard ofDirectors.
(3) Supervision overthe AuditingWork oftheAccounting firm
The Audit Committee issued letters to Deloitte Touche Tohmatsu Certified Public Accountants LLP on 25 Jan. and 25 Feb. 2016 respectively to urge them to produce their audit report in a timely manner, so as to ensure theannual audit and information disclosure proceed as scheduled.
(4) Opinionsonthe AuditingWork Performed bytheAccountants for theprevious year
During the auditing period, the Audit Committee of the Board focused on the problems discovered in process of audit, urged auditors to finish the preparation of their report within a prescribed period of time and ensured the truthfulness, accuracy and completeness of the annual report. The Certified Public Accountants issued a standard unqualified audit report on 24 Mar. 2016. The Audit Committee considered that the Certified Public Accountants conducted their audit in accordance withChina’s Independent Auditing Standards, the audit time was sufficient, the deployment of the auditors was appropriate and their practicing capability was excellent, and that the audit report issued sufficiently reflected the Company's financial condition as at 31 Dec. 2015 and its operation results and cash flows for the year 2015 and the audit conclusion made was in line with the actual situation oftheCompany.
3. During the reporting period, the Audit Committee made standards and requirements to the Audit Office's report submitted, fully understood the sound establish and implementation of internal control system, focused on problems and suggestions provided by the Audit Office. In addition, the Audit Committee advised on the improvement for the work of the Audit Department and the Company relating tointernal control for thenextyear.
(II) Performance ofthe Nomination,Remuneration andEvaluationCommittee
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited During the reporting period, the Nomination, Remuneration and Evaluation Committee earnestly performed their duties, investigated the candidate of the manager and the directors, and examined the remuneration of directors, supervisors and senior executives which obtained from the Company, in term of the requirements and stipulations of CSRC, Articles of Association, Working Rules of the Nomination, Remuneration and Evaluation Committee and responsibilities and obligations empowered bytheBoard of Directors.
During the reporting period, the Nomination, Remuneration and Evaluation Committee under the Board ofDirectors held a totalof three meetings, details ofwhich are as follows:
1. On 5 Jan. 2016, the First Meeting of the Nomination, Remuneration and Evaluation Committee of the 8th Board of Directors for 2016 was held by telecommunication voting at which the Proposal on Examining Director Candidates was reviewed and approved unanimously. Upon review by the Board, thesedirector candidates would be elected at ameeting of shareholders.
2. On 24 Mar. 2016, the Second Meeting of he Nomination, Remuneration and Evaluation Committee of the 8th Board of Directors for 2016 was held at 10:30 a.m. at Conference Room 1, 11/F., Chiwan Haiyun Building, Shenzhen, at which the following proposals were reviewed and approved unanimously:
(1) “The Working Report of the Nomination, Remuneration and Evaluation Committee of the Board for 2015”; and
(2) “The Report on the Remuneration of the Directors, Supervisors and Senior Management Staff for 2015”.
3. On 24 Aug. 2016, the Third Meeting of the Nomination, Remuneration and Evaluation Committee of the 8th Board of Directors for 2016 was held at 2:50 p.m. at Conference Room 3, 11/F., Chiwan Haiyun Building, Shenzhen, at which the Proposal on Hiring Mr. Lin Cong as Vice GM was reviewed and approved unanimously, and submitted to the Board of Directors of the Company for approval.
(III) Performance oftheStrategy Committee
During the reporting period, members of the Strategy Committee in line with the requirements of CSRC, Article of Association, and the stipulation of Working Rules of the Strategy Committee and relying on its expertise and experience and the responsibilities and obligations empowered by the Board of Directors, earnestly perform their duties, assisted the Company's further plan for medium and long-term development, conducted research and advised on the investment plans and assets operation projects related to themedium to long term development strategy oftheCompany. During the reporting period, the Strategy Committee under the Board of Directors held a total of three meetings,details ofwhich are as follows:
1. On 22 Jan. 2016, the First Meeting of the Strategy Committee of the 8th Board of Directors for 2016 was held at 3:40 p.m. at Conference Room 2, 11/F., Chiwan Haiyun Building, Shenzhen, at which the Proposal on Election of Convener for the Strategy Committee under the 8th Board of Directors was reviewed and approved unanimously. The said proposal was later submitted to the Board forreview.
2. On 24 Mar. 2016, the Second Meeting of the Strategy Committee of the 8th Board of Directors for 2016 was held at 11:00 a.m. at Conference Room 1, 11/F., Chiwan Haiyun Building, Shenzhen, at which the Working Report of the Strategy Committee of the Board for 2015 and the Business Development Plan for2016to2020were reviewed andapproved unanimously.
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited 3. On 25 Apr. 2016, the Third Meeting of the Strategy Committee of the 8th Board of Directors for 2016 was held by telecommunication voting, at which the Proposal on Investing in Haixing Onoda Project was reviewed and approved unanimously. The said proposal was later submitted to the Board forreview.
VII. Performance of theSupervisory Board
During the reporting period, the Supervisory Board found whether there was risk in the Company in the supervisory activity
□Yes√ No
The Supervisory Board has noobjection onthesupervised events during the reporting period. VIII. Performance Evaluationand IncentiveMechanismforSeniorManagement Staff
All senior management staff of the Company is appointed by the Board of Directors. The Board sets up theCompany’s business objectives and financial budget for each year and signs KPI contracts accordingly with senior management staff. The Board then determines the incentive standards to senior management staff according totheirrespective performance during theyear.
IX.Internal Control
1.Particulars aboutsignificantdefects foundin theinternal control duringreporting period□Yes√ No
2.Self-appraisal report on internalcontrol
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|-|-|-|-|-|-|
|DisclosuredateoftheSelf-appraisalReportonInternalControl|||28Mar.2017|||
|DisclosureindexoftheAuditor’sReportonInternalControl|||Forspecificcontent,disclosedonwww.cninfo.com.cn|||
|Theproportion oftotalassetsincludedinevaluationscope entitiesintheCompany'stotalassetsoftheconsolidatedfinancialstatements|||92%|||
|Theproportion of operationrevenue includedinevaluationscopeentitiesin theCompany'soperationrevenueoftheconsolidatedfinancialstatements|||90%|||
|DefectJudgingStandards||||||
|Category|FinancialReport|Non-FinancialReport||||
|Qualitativecriteria|Ifadefectordefectgroupgiverisetothefollowingeventswhichcannotbepreventedorfoundandmaderectification,thedefectordefectgrouparerecognizedassignificantdefects:(1)Malpracticesofdirectors,supervisorsandsenior|Greatdefect||Significantdefect|Commondefect|
|||Developmentdirectionseveritydeviatefromthestrategicgoals,investmentdirection,andbusinessstructure,commercial||Developmentdirectionseveritydeviatefromthestrategicgoals,investmentdirection,andbusinessstructure,commercial|Developmentdirectionseveritydeviatefromthestrategicgoals,investmentdirection,andbusinessstructure,commercial|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
|||||
|-|-|-|-|
|management:(2)TheCompanymakecorrectiontothefinancialreportissued;(3)CertifiedPublicAccountantfindthatthereisasignificanterrorinthefinancialreport,however,theinternalcontroldidnotdiscoveritwhenconductinginternalcontrol;(4)TheAuditCommitteeundertheBoardandInternalAuditService'ssupervisiontotheinternalcontrolisinvalid.|modeled.whichcompletelyunabletosupporttherealizationofstrategicgoals|modeled.whichunabletosupporttherealizationofstrategicgoalsatalargerextent|modeled.whichcompletelycan'tfullysupporttherealizationofstrategicgoals|
||Strategyimplementationisblocked,almostallindicatorsofstrategyimplementationcannotcompletedasplanned|Strategyimplementationisblocked,mostofindicatorsofstrategyimplementationcannotcompletedasplanned|Strategyimplementationisblocked,partofindicatorsofstrategyimplementationcannotcompletedasplanned|
||Haveasignificantadverseimpactontheassetturnoverability,whichleadtototalassetturnoverratelowed20%above(Including20％）|Haveagreateradverseimpactontheassetturnoverability,whichleadtototalassetturnoverratelowed10%to20%(Including10%）|Haveanadverseimpactontheassetturnoverability,whichleadtototalassetturnoverratelowed10%below|
||Leadtobreakoffofcommonbusiness/serviceorittakeshalfyearorabovetorecoverthebreakoffofcommonbusiness/service|Leadtobreakoffofcommonbusiness/serviceorittakesthreemonthsorhalfyearbelow torecoverthebreakoffofcommonbusiness/service|Somedailybusinessisinfluenced,leadtobreakoffofcommonbusiness/serviceorittakesthreemonthsbelowtorecoverthebreakoffofcommonbusiness/service|
||Badlydamagetheworkingenthusiasmofalltheemployees,willgiverisetolargescalegroupeventsorheavydamagetoenterprisescultureandenterprisescohesion|Inalargeextent,damagetheworkingenthusiasmofalltheemployees,reduceworkefficiency,havegreatlyadverseeffecttoenterprisescultureandenterprisescohesion|Inalargeextent,damagetheworkingenthusiasmofalltheemployees,reduceworkefficiency,havesomeadverseeffecttoenterprisescultureandenterprisescohesion|
||Theemployee'sabilityandprofessionalskillsuniversallycannotmeettheenterprisedevelopment|Theemployee'sabilityandprofessionalskillsinsomesignificantfieldscannot meettheenterprise|Theemployee'sabilityandprofessionalskillsinsomefieldscannotmeettheenterprise|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
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|||needsbyalargemargin|developmentneeds|development|
|||Negativenewsspreadinthefieldoftheentirebusiness(includingextendingtoindustrychain),orwaspaidattentionbythenationalmediaorpublicmedia,therecoveryofreputationwilltakemorethansixmonths|Negativenewsspreadinthefieldoftheentirebusiness,orwaspaidattentionorreportedbythelocalmediatherecoveryofreputationwilltakethreetosixmonths|Negativenewsspreadinthefieldoftheentirebusiness,havesmalldamagetothereputationoftheenterprise,therecoveryofreputationwilltakethreemonthsbelow|
|||Theenterprise'sinternalconfidentialinformationleakagewhichbadlyaffecttheenterprise'scompetitivecapacityinthemarket,oraffectthecompetitivecapacityinmanagement|Theenterprise'sinternalconfidentialinformationleakagewhichaffecttheenterprise'scompetitivecapacityinthemarket,oraffectthecompetitivecapacityinmanagementinalargeextent|Theenterprise'sinternalconfidentialinformationleakagewhichaffecttheenterprise'scompetitivecapacityinthemarket,oraffectthecompetitivecapacityinmanagementinageneral extent|
|Quantitativecriteria|ThejudgingstandardwasthenetprofitsattributabletotheparentCompany'sshareholdersintheconsolidatedfinancialstatementsauditedinlastyear.Misstatementamount≥5%aboveofjudgingstandardwasgreatdefect;5%judgingstandard＞1%misstatementamountwassignificantdefect;misstatementamount＜1%belowofjudgingstandardwasgeneralstandard.|ThejudgingstandardwasthenetprofitsattributabletotheparentCompany'sshareholdersintheconsolidatedfinancialstatementsauditedinlastyear.|||
|||Greatdefect|Significantdefect|Commondefect|
|||Hadsignificantadverseimpacttotheannualoperationprofitsorcausedecreaseofannualoperationprofitswhenat5%(including5%)aboveofjudgingstandard|Hadlargeradverseimpacttotheannualoperationprofitsorcausedecreaseofannualoperationprofitswhenat1%(including1%)to5%judgingstandard|Hadadverseimpact totheannualoperationprofitsorcausedecreaseofannualoperationprofitswhenat1%belowofjudgingstandard|
|||Hadsignificantadverseimpacttodecreaseofinflowoftotalcashfloworincreaseofoutflow totalcashflowwhenat10%(including10%)aboveofjudging|Hadlargeradverseimpacttodecreaseofinflowoftotalcashfloworincreaseofoutflow totalcashflowwhenat5%(including5%)to10%aboveofjudging|Had adverseimpacttodecreaseofinflowoftotalcashfloworincreaseofoutflow totalcashflowwhenat5%belowofjudgingstandard|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
||||
|-|-|-|
|standard|standard||
|Greatinvestmentmistakeincurredwhichcausedirecteconomylosseswhenat5%(including5%)aboveofjudgingstandardorthereturnoninvestmentmorethan40%lowerthanexpected|Largerinvestmentmistakeincurredwhichcausedirecteconomylosseswhenat1%(including1%)to5%ofjudgingstandardorthereturnoninvestmentlessthan30%(including30%to40%)lowerthanexpected|Greatinvestmentmistakeincurredwhichcausedirecteconomylosseswhenat1%belowofjudgingstandardorthereturnoninvestmentlessthan30%lowerthanexpected|
|0deathorabove,or50peopleseriousinjury,ordirecteconomylosseswhenat5%(including5%)aboveofjudgingstandard|3deathsaboveto10deathsbelow,orlessthan10peopleseriousinjury,ordirecteconomylosseswhenat1%(including1%)to5%ofjudgingstandard|lessthan3deathsorabove,orlessthan10peopleseriousinjury,ordirecteconomylosseswhenat1%belowofjudgingstandard|
|Assetintegritycannotbeensured,whenassetslossesat5%(including5%)aboveofjudgingstandard|Assetintegritycannotbeensured,whenassetslossesat1%(including1%)to5%ofjudgingstandard|Assetintegritycannotbeensured,whenassetslossesat1%belowofjudgingstandard|
|Alargenumberofgreatcommercialdisputes,civillawsuitsandnegativeinfluencescan'teliminate inashortperiodoftime,maypaycompensationat5%(including5%)aboveofjudgingstandard|Numberofgreatcommercialdisputes,civillawsuits,andhadobviouslyinfluenceinacertainareaandperiod,maypaycompensationat1%(including1%)to5%ofjudgingstandard|Irreconcilablecommercialdisputes,civillawsuitshappenedsometimes,causeacertaininfluencesinlocal,maypaycompensation at1%belowofjudgingstandard|
|Aseriousviolationoflawsandregulations,investigatedbygovernmentdepartmentandlegaldepartment,causeprosecutionandclassaction,maypay|Aseriousviolationoflawsandregulations,investigatedbygovernmentdepartmentandlegaldepartment,maypaycompensation at0.5%(including0.5%)to2%of|Violationoflawsandregulations,investigatedbygovernmentdepartmentandlegaldepartment,maypaycompensation at0.5%belowofjudgingstandard|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited
|||||
|-|-|-|-|
|||compensation at2%(including2%)aboveofjudgingstandard|judgingstandard|
|Numberofsignificantdefectsoffinancialreport(Piece)|0|||
|Numberofsignificantdefectsofnon-financialreport(Piece)|0|||
|Numberofimportantdefectsoffinancialreport(Piece)|0|||
|Numberofimportantdefectsofnon-financialreport(Piece)|0|||

X. Auditreport on internalcontrol
|||
|-|-|
|AuditopinionparagraphsintheAuditReportonInternalControl||
|InlinewiththerelevantrequirementofEnterpriseInternalControlAuditGuidelinesandPracticingStandardsforChina'sCPAs,DeloitteToucheTohmatsuCertifiedPublicAccountantsLLPauditedtheeffectivenessofinternalcontrolinfinancialreporton31Dec.2016,andbelievedthatShenzhenChiwanWharfHoldingsLimitedhasmaintainedeffectiveinternalcontrolonfinancialreportinallsignificantrespectsaccordingtotheBasicRulesforEnterpriseInternalControlandrelevantregulationson31Dec.2016.||
|DisclosureofAuditReportonInternalControl|Disclosed|
|DisclosuredateoftheAuditReportonInternalControl|28Mar.2017|
|DisclosureindexoftheAuditReportonInternalControl|DetailsoftheInternalControlReportofShenzhenChiwanWharfHoldingsLimitedwasdisclosedonwww.cninfo.com.cn|
|TypeofAuditReportonInternalControl|StandardUnqualifiedauditor'sreport|
|Whetherthereissignificantdefectinnon-financialreport|No|

Whether theCPAsfirm issues an Audit Report onInternal Control with non-standard opinion ornot?□Yes√ No
Whether theAudit Report onInternal Controlfrom theCPAs firm is in consistent with theSelf- appraisal Report from theBoard or not?
√ Yes□ No
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section X. Corporate Bonds
Corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date ofthis Report orwere duebut could not be redeemed in full
None
The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section XI.Auditor’s Report (See attached)
|||
|-|-|
|Typeofauditopinion|Standardandunqualifiedauditor'sreport|
|Dateofsigningauditreport|24Mar.2017|
|Auditagency|DeloitteToucheTohmatsuCertifiedPublicAccountantsLLP|
|No.ofauditreport|DeShiBao(Shen)Zi(17)No.P00240|
|NameofCPA|LiWeihua,SuMin|

The2016AnnualReportofShenzhenChiwanWharfHoldingsLimited Section XII. Documents Available for Reference
I. FinancialStatements carrying thesignatures andstamps of theCompany Principal,the ChiefFinancial Officerandtheperson incharge ofaccounting firm;
II. Originalcopy of theAuditor'sReport stamped bytheaccounting firmandsignedand stamped by registered accountants;
III. Originalcopies of alldocuments andthe announcements thereof disclosedin thereporting period on “Securities Times”and “TaKung Pao”;
IV.Original copy oftheAnnualReport signedby theChairman.
For and onbehalf oftheBoard ShiWei
Chairman
Shenzhen Chiwan WharfHoldings Limited Dated 28March 2017
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
FINANCIAL STATEMENTS AND
AUDITORS'REPORT
FOR THE YEAR ENDED 31DECEMBER 2016
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
FINANCIAL STATEMENTS ANDAUDITOR'S REPORT
FOR THE YEAR ENDED 31DECEMBER 2016
Contents Pages
Auditor's report 1- 2
TheCompany andconsolidated balance sheets 3- 4
TheCompany andconsolidated incomestatements 5- 6
TheCompany andconsolidated cash flowstatements 7- 8
TheCompany andconsolidated statements ofchanges in
shareholders' equity 9-10
Notes to thefinancial statements 11- 100
AUDITOR'S REPORT
DeShi Bao(Shen)Zi (17) No. P00240 TotheShareholders of Shenzhen Chiwan WharfHoldings Limited
Wehave audited theaccompanying financial statements of Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred toas "Chiwan Wharf"),which comprise thecompany and consolidated balance sheets as at 31December 2016,and the company and consolidated incomestatements, the company andconsolidated statements ofchanges in shareholders' equity and thecompany and consolidated cash flow statements forthe year then ended, and thenotes tothefinancial statements. 1.Management's responsibility forthe financial statements
Management ofChiwan Wharfis responsiblefor thepreparation and fairpresentation ofthese financial statements. This responsibilityincludes: (1) preparing the financial statements in accordance with Accounting Standards forBusiness Enterprises to achieve fair presentation ofthefinancial statements; (2) designing, implementing and maintaining internal control which is necessary toenable the preparation offinancial statements that are free from material misstatement, whether dueto fraud orerror.
2.Auditor's responsibility
Our responsibilityis to express an opinion onthesefinancial statements based onouraudit. We conducted our audit inaccordance with ChinaStandards onAuditing. Those standards require that we comply with theCodeof Ethics forChinesePublicAccountants and plan and perform theaudit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involvesperforming procedures to obtain audit evidence about theamounts and disclosures in thefinancial statements. Theprocedures selected dependonthe auditor's judgment, including theassessment oftherisks ofmaterial misstatement ofthefinancial statements, whether due to fraud orerror. In making thoserisk assessments, we consider theinternal control relevant tothe preparation and fair presentation ofthefinancial statements in order todesign audit procedures that are appropriatein thecircumstances, but not forthepurpose ofexpressing an opinion ontheeffectiveness ofthe internal control. An audit also includes evaluating theappropriateness ofaccounting policies used and thereasonableness ofaccounting estimates madebymanagement, as well as evaluating the overall presentation ofthefinancial statements.
Webelieve that theaudit evidence we haveobtained is sufficient and appropriate to providea basis for ouraudit opinion.
3.Opinion
In our opinion, thefinancial statements ofChiwan Wharfpresent fairly, inall material respects, the company's and consolidated financial position as of31December 2016,and thecompany's and consolidated results ofoperations andcash flows for theyear then ended inaccordance with Accounting Standards for Business Enterprises.
Deloitte ToucheTohmatsu ChineseCertified PublicAccountant: Certified PublicAccountants LLP
Shanghai, China Li Weihua
ChineseCertified PublicAccountant: SuMin
24March 2017
Theauditor'sreportandtheaccompanyingfinancialstatementsareEnglishtranslationsoftheChineseauditor'sreport andfinancialstatementspreparedinaccordancewithAccountingStandardsforBusinessEnterprises.Thesefinancial statementsarenotintendedtopresentthefinancialpositionandresultsofoperationsandcashflowsinaccordancewith accountingprinciplesandpracticesgenerallyacceptedinothercountriesandjurisdictions.WheretheEnglishversion doesnotconformtotheChineseversion,theChineseversionprevails.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
AT31DECEMBER 2016
Consolidated BalanceSheet
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|ASSETS|Notes|2016|2015|LIABILITIESANDSHAREHOLDERS'EQUITY|Notes|2016|2015|
|CurrentAssets:||||CurrentLiabilities:||||
|Cashandbankbalances|(V)1|426,036,702.87|683,138,123.66|Short-termborrowings|(V)20|-|141,610,178.37|
|Notesreceivable|(V)2|500,000.00|3,327,000.00|Accountspayable|(V)21|89,444,597.10|91,453,838.66|
|Accountsreceivable|(V)3|173,934,496.63|189,016,564.86|Receiptsinadvance|(V)22|30,668,212.67|40,504,130.84|
|Prepayments|(V)4|2,639,758.53|2,678,775.41|Employeebenefitspayable|(V)23|88,578,492.26|77,084,662.63|
|Interestreceivable|(V)5|-|72,773.05|Taxespayable|(V)24|48,504,829.80|48,134,602.74|
|Dividendsreceivable|(V)6|-|-|Interestpayable|(V)25|2,567,260.28|18,519,838.93|
|Otherreceivables|(V)7|26,647,869.01|14,908,748.44|Dividendspayable|(V)26|-|88,715,008.17|
|Inventories|(V)8|14,771,410.09|17,300,307.66|Otherpayables|(V)27|74,590,394.09|76,713,923.82|
|Othercurrentassets|(V)9|16,832,212.36|12,889,208.71|Non-currentliabilitiesduewithinoneyear|(V)28|-|5,306,254.17|
|Totalcurrentassets||661,362,449.49|923,331,501.79|Othercurrentliabilities|(V)29|250,000,000.00|500,000,000.00|
|Non-currentAssets:||||Totalcurrentliabilities||584,353,786.20|1,088,042,438.33|
|Available-for-salefinancialassets|(V)10|22,459,200.00|22,659,200.00|Non-currentLiabilities:||||
|Long-termequityinvestments|(V)11|1,490,427,656.53|1,447,024,975.16|Bondspayable|(V)30|298,331,506.85|497,764,383.59|
|Investmentproperty|(V)12|23,646,913.77|26,747,795.38|Specialpayables|(V)31|34,326,860.44|34,990,596.50|
|Fixedassets|(V)13|3,036,813,842.54|3,213,180,964.08|Deferredincome|(V)32|64,613,319.88|61,757,528.45|
|Constructioninprogress|(V)14|164,604,358.31|22,222,084.78|Deferredtaxliabilities|(V)18|1,857,500.00|1,907,500.00|
|Intangibleassets|(V)15|1,010,767,451.01|1,046,896,621.98|Totalnon-currentliabilities||399,129,187.17|596,420,008.54|
|Goodwill|(V)16|10,858,898.17|10,858,898.17|TOTALLIABILITIES||983,482,973.37|1,684,462,446.87|
|Long-termprepaidexpenses|(V)17|54,944,476.64|57,241,809.97|SHAREHOLDERS'EQUITY:||||
|Deferredtaxassets|(V)18|12,221,758.47|11,274,320.82|Sharecapital|(V)33|644,763,730.00|644,763,730.00|
|Othernon-currentassets|(V)19|132,369,704.86|132,334,704.86|Capitalreserve|(V)34|167,480,381.25|165,564,739.15|
|Totalnon-currentassets||5,959,114,260.30|5,990,441,375.20|Othercomprehensiveincome|(V)35|(8,039,646.43)|(7,889,646.43)|
|||||Specialreserve|(V)36|4,145,765.65|3,719,755.58|
|||||Surplusreserve|(V)37|520,074,434.56|520,074,434.56|
|||||Unappropriatedprofit|(V)38|3,381,390,887.86|3,113,367,524.19|
|||||Totalshareholders'equityattributabletoequityholdersoftheparent||4,709,815,552.89|4,439,600,537.05|
|||||Minorityinterests||927,178,183.53|789,709,893.07|
|||||TOTALSHAREHOLDERS'EQUITY:||5,636,993,736.42|5,229,310,430.12|
|TOTALASSETS||6,620,476,709.79|6,913,772,876.99|TOTALLIABILITIESANDSHAREHOLDERS'EQUITY||6,620,476,709.79|6,913,772,876.99|

Theaccompanying notes form part ofthe financial statements.
Thefinancial statements onpages 3to100were signed bythefollowing:
LegalRepresentative：ShiWei
ChiefFinancialOfficer：Zhang Fang
Head ofAccountingDepartment：Li Xiaopeng
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
AT31DECEMBER 2016
BalanceSheetof theCompany
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|ASSETS|Notes|2016|2015|LIABILITIESANDSHAREHOLDERS'EQUITY|Notes|2016|2015|
|CurrentAssets:||||CurrentLiabilities:||||
|Cashandbankbalances||97,401,657.09|331,615,767.60|Accountspayable||15,743,751.91|15,487,513.65|
|Accountsreceivable|(XIV)1|14,730,412.29|20,084,782.32|Receiptsinadvance||-|152,681.00|
|Prepayments||175,000.00|489,500.00|Employeebenefitspayable||53,761,846.04|47,533,873.50|
|Dividendsreceivable||134,702,787.76|217,818,690.44|Taxespayable||1,906,748.15|1,571,813.93|
|Otherreceivables|(XIV)2|582,452,104.00|679,107,748.88|Interestpayable||5,657,953.71|20,381,890.98|
|Inventories||394,234.74|1,026,023.04|Dividendpayable||37,608,540.65|37,608,540.65|
|Othercurrentassets||997,740.76|487,860.51|Otherpayables||358,982,632.32|327,263,528.94|
|Totalcurrentassets||830,853,936.64|1,250,630,372.79|Othercurrentliabilities||250,000,000.00|500,000,000.00|
|Non-currentAssets:||||Totalcurrentliabilities||723,661,472.78|949,999,842.65|
|Available-for-salefinancialassets||22,459,200.00|22,659,200.00|Non-currentLiabilities:||||
|Long-termreceivables||11,004,284.75|11,004,284.75|Bondspayable||298,331,506.85|497,764,383.59|
|Long-termequityinvestments|(XIV)3|2,032,600,191.97|2,000,153,426.29|Long-termpayable||116,662,000.00|-|
|Investmentproperty||13,600,159.92|16,358,585.53|Deferredtaxliabilities||1,857,500.00|1,907,500.00|
|Fixedassets||179,815,891.12|192,230,359.90|Totalnon-currentliabilities||416,851,006.85|499,671,883.59|
|Constructioninprogress||29,437,068.97|1,945,894.40|TOTALLIABILITIES||1,140,512,479.63|1,449,671,726.24|
|Intangibleassets||62,890,018.39|65,112,021.93|SHAREHOLDERS'EQUITY||||
|Long-termprepaidexpenses||4,156,590.13|4,391,427.41|Sharecapital||644,763,730.00|644,763,730.00|
|Totalnon-currentassets||2,355,963,405.25|2,313,855,200.21|Capitalreserve||240,001,254.59|239,043,433.54|
|||||OtherComprehensiveIncome||5,672,500.00|5,822,500.00|
|||||Specialreserve||1,027,543.25|1,465,450.61|
|||||Surplusreserve||520,074,434.56|520,074,434.56|
|||||Unappropriatedprofit||634,765,399.86|703,644,298.05|
|||||TOTALSHAREHOLDERS'EQUITY||2,046,304,862.26|2,114,813,846.76|
|TOTALASSETS||3,186,817,341.89|3,564,485,573.00|TOTALLIABILITIESANDSHAREHOLDERS'EQUITY||3,186,817,341.89|3,564,485,573.00|

Theaccompanying notes form part ofthe financial statements.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
FOR THE YEAR ENDED 31DECEMBER 2016
Consolidated IncomeStatement
Unit: RMB
|||||
|-|-|-|-|
|ITEM|Notes|2016|2015|
|I. Operatingincome|(V)39|1,905,107,140.42|1,872,608,596.16|
|Less:Operatingcosts|(V)39|1,050,465,880.51|1,002,715,909.05|
|Businesstaxesandlevies|(V)40|10,772,232.34|7,552,581.66|
|Administrativeexpenses|(V)41|174,521,284.02|175,644,906.71|
|Financialexpenses|(V)42|17,022,615.47|59,500,840.56|
|Impairmentlossesofassets|(V)43|4,689,573.88|(89,469.40)|
|Add: Investmentincome|(V)44|120,483,875.42|100,817,732.86|
|Including:Incomefrominvestmentsinassociatesandjointventures|(V)44|114,191,687.57|95,337,543.13|
|II. Operatingprofit||768,119,429.62|728,101,560.44|
|Add:Non-operatingincome|(V)45|5,695,583.80|3,500,319.86|
|Including:Gainsfromdisposalofnon-currentassets|(V)45|325,644.31|460,800.55|
|Less:Non-operatingexpenses|(V)46|3,156,325.92|3,574,586.26|
|Including:Lossesfromdisposalofnon-currentassets|(V)46|2,794,529.60|3,087,832.34|
|III. Grossprofit||770,658,687.50|728,027,294.04|
|Less:Incometaxexpenses|(V)47|100,808,983.78|75,309,635.43|
|IV. Netprofit||669,849,703.72|652,717,658.61|
|Netprofitattributabletoshareholdersoftheparent||532,376,492.97|527,751,492.42|
|Profitorlossattributabletominorityshareholders||137,473,210.75|124,966,166.19|
|V. AmountofOtherComprehensiveNetIncomeAfterTax:|(V)48|(150,000.00)|1,087,500.00|
|Amountof othercomprehensivenetincomeaftertaxattributabletoequityholdersoftheparent||(150,000.00)|1,087,500.00|
|(I) Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss||-|-|
|(i) Changeasaresultofremeasurementofthenetdefinedbenefitplanliabilityorasset||-|-|
|(ii) Shareofothercomprehensiveincomeoftheinvesteeundertheequitymethodthatwillnotbereclassifiedtoprofitorloss||-|-|
|(II) Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss||(150,000.00)|1,087,500.00|
|(i) Shareofothercomprehensiveincomeoftheinvesteeundertheequitymethodthatwillbereclassifiedtoprofitorloss||-|-|
|(ii) Gainsorlossesonchangesinfairvalueofavailable-for-salefinancialassets||(150,000.00)|1,087,500.00|
|(iii) Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies||-|-|
|Amountof othercomprehensivenetincomeaftertaxattributabletominorityshareholders||-|-|
|VI. Totalcomprehensiveincomeattributableto:||669,699,703.72|653,805,158.61|
|Shareholdersoftheparent||532,226,492.97|528,838,992.42|
|Minorityshareholders||137,473,210.75|124,966,166.19|
|VII. Earningspershare:||||
|(I)Basicearningspershare||0.826|0.819|
|(II)Dilutedearningspershare||0.826|0.819|

 Theaccompanying notes form part ofthe financial statements.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
FOR THE YEAR ENDED 31DECEMBER 2016
IncomeStatement oftheCompany
Unit: RMB
|||||
|-|-|-|-|
|ITEM|Notes|2016|2015|
|I. Operatingincome|(XIV)4|223,985,141.78|260,740,919.37|
|Less:Operatingcosts|(XIV)4|142,385,061.09|154,634,147.78|
|Businesstaxesandlevies||2,614,833.60|4,723,343.75|
|Administrativeexpenses||77,019,295.74|72,403,051.31|
|Financialexpenses||15,068,123.74|29,594,550.18|
|Impairmentlossofassets||7,730.22|-|
|Add:Investmentincome|(XIV)5|208,616,109.27|275,970,089.64|
|Including:Incomefrominvestmentsinassociatesandjointventures|(XIV)5|67,621,133.66|52,671,209.47|
|II. Operatingprofit||195,506,206.66|275,355,915.99|
|Add: Non-operatingincome||1,645,059.38|960,564.26|
|Including:Gainsondisposalofnon-currentassets||175,644.31|313,012.51|
|Less:Non-operatingexpenses||1,699,991.85|937,447.90|
|Including:Lossesondisposalofnon-currentassets||1,353,089.04|789,301.88|
|III. Grossprofit||195,451,274.19|275,379,032.35|
|Less:Incometaxexpenses||(22,956.92)|11,137,816.63|
|IV. Netprofit||195,474,231.11|264,241,215.72|
|V. AmountofOtherComprehensiveNetIncomeAfterTax:||(150,000.00)|1,087,500.00|
|(I) Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss||-|-|
|(i) Changeasaresultofremeasurementofthenetdefinedbenefitplanliabilityorasset||-|-|
|(ii) Shareofothercomprehensiveincomeoftheinvesteeundertheequitymethodthatwillnotbereclassifiedtoprofitorloss||-|-|
|(II) Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss||(150,000.00)|1,087,500.00|
|(i) Shareofothercomprehensiveincomeoftheinvesteeundertheequitymethodthatwillbereclassifiedtoprofitorloss||-|-|
|(ii) Gainsorlossesonchangesinfairvalueofavailable-for-salefinancialassets||(150,000.00)|1,087,500.00|
|(iii) Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies||-|-|
|VI. Totalcomprehensiveincome||195,324,231.11|265,328,715.72|

 Theaccompanying notes form part ofthe financial statements.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
FOR THE YEAR ENDED 31DECEMBER 2016
Consolidated Cash FlowStatement
Unit: RMB
|||||
|-|-|-|-|
|ITEM|Notes|2016|2015|
|I. CashFlowsfromOperatingActivities:||||
|Cashreceiptsfromsalesofgoodsandrenderingofservices||1,960,263,631.42|1,940,123,679.99|
|Othercashreceiptsrelatingtooperatingactivities|(V)50(1)|22,883,145.63|71,210,780.42|
|Sub-totalofcashinflows||1,983,146,777.05|2,011,334,460.41|
|Cashpaymentsforgoodspurchasedandservicesreceived||583,883,340.44|525,054,196.11|
|Cashpaymentstoandonbehalfofemployees||351,637,512.85|340,667,806.30|
|Paymentsofalltypesoftaxes||124,839,402.64|108,991,126.73|
|Othercashpaymentsrelatingtooperatingactivities|(V)50(2)|95,031,617.01|58,770,593.82|
|Sub-totalofcashoutflows||1,155,391,872.94|1,033,483,722.96|
|NetCashFlowsfromOperatingActivities|(V)51(1)|827,754,904.11|977,850,737.45|
|II. CashFlowsfromInvestingActivities:||||
|Cashreceiptsfromdisposalsandrecoveryofinvestments||-|110,955,345.27|
|Cashreceiptsfrominvestmentsincome||78,873,958.07|39,043,870.98|
|Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets||2,790,734.08|3,117,287.66|
|Sub-totalofcashinflows||81,664,692.15|153,116,503.91|
|Cashpaymentstoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets||171,567,857.53|152,822,155.82|
|Sub-totalofcashoutflows||171,567,857.53|152,822,155.82|
|NetCashFlowsfromInvestingActivities||(89,903,165.38)|294,348.09|
|III. CashFlowsfromFinancingActivities:||||
|Cashreceiptsfromborrowings||100,000,000.00|133,885,679.50|
|Cashreceiptsfromissueofbonds||850,000,000.00|800,000,000.00|
|Sub-totalofcashinflows||950,000,000.00|933,885,679.50|
|Cashrepaymentsofborrowings||1,541,610,178.37|1,200,000,000.00|
|Cashpaymentsfordistributionofdividendsorprofitorinterest||411,776,223.56|504,618,011.73|
|Including:Paymentsfordistributionofdividendsorprofittominorities||95,677,829.00|215,249,531.83|
|Othercashpaymentsrelatingtofinancingactivities|(V)50(3)|2,702,654.14|1,750,344.61|
|Sub-totalofcashoutflows||1,956,089,056.07|1,706,368,356.34|
|NetCashFlowsfromFinancingActivities||(1,006,089,056.07)|(772,482,676.84)|
|IV. EffectofForeignExchangeRateChangesonCashandCashEquivalents||11,135,896.55|8,840,228.49|
|V. NetIncrease(Decrease)inCashandCashEquivalents||(257,101,420.79)|214,502,637.19|
|Add:OpeningbalanceofCashandCashEquivalents|(V)51(2)|683,138,123.66|468,635,486.47|
|VI. ClosingBalanceofCashandCashEquivalents|(V)51(2)|426,036,702.87|683,138,123.66|

 Theaccompanying notes form part ofthe financial statements.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
FOR THE YEAR ENDED 31DECEMBER 2016
Cash FlowStatement oftheCompany
Unit: RMB
|||||
|-|-|-|-|
|ITEM|Notes|2016|2015|
|I. CashFlowsfromOperatingActivities:||||
|Cashreceiptsfromsalesofgoodsandrenderingofservices||242,290,965.55|266,291,531.90|
|Othercashreceiptsrelatingtooperatingactivities||808,126,879.09|1,085,646,413.98|
|Sub-totalofcashinflows||1,050,417,844.64|1,351,937,945.88|
|Cashpaymentsforgoodspurchasedandservicesreceived||71,852,072.97|74,851,999.84|
|Cashpaymentstoandonbehalfofemployees||118,427,797.66|120,776,012.55|
|Paymentsofalltypesoftaxes||6,394,756.31|15,379,650.33|
|Othercashpaymentsrelatingtooperatingactivities||673,179,988.69|769,807,353.31|
|Sub-totalofcashoutflows||869,854,615.63|980,815,016.03|
|NetCashFlowsfromOperatingActivities|(XIV)8|180,563,229.01|371,122,929.85|
|II. CashFlowsfromInvestingActivities:||||
|Cashreceiptsfromdisposalsandrecoveryofinvestments||-|110,955,345.27|
|Cashreceiptsfrominvestmentsincome||260,243,067.32|257,849,757.21|
|Netcashreceiptsfromdisposaloffixedassets,intangibleassetsandotherlong-termassets||2,304,251.36|2,949,239.92|
|Cashreceiptsfromdisposalofsubsidiariesandotherbusinessunits||-|118,451.91|
|Sub-totalofcashinflows||262,547,318.68|371,872,794.31|
|Cashpaymentstoacquireorconstructfixedassets,intangibleassetsandotherlong-termassets||26,783,222.80|3,722,488.26|
|Sub-totalofcashoutflows||26,783,222.80|3,722,488.26|
|NetCashFlowsfromInvestingActivities||235,764,095.88|368,150,306.05|
|III. CashFlowsfromFinancingActivities:||||
|Cashreceiptsfromborrowings||216,662,000.00|-|
|Cashreceiptsfromissueofbonds||850,000,000.00|800,000,000.00|
|Sub-totalofcashinflows||1,066,662,000.00|800,000,000.00|
|Cashrepaymentsofborrowings||1,400,000,000.00|1,200,000,000.00|
|Cashpaymentsfordistributionofdividendsorprofitorinterest||315,547,137.22|287,640,370.14|
|Othercashpaymentsrelatingtofinancingactivities||2,702,654.14|1,750,344.61|
|Sub-totalofcashoutflows||1,718,249,791.36|1,489,390,714.75|
|NetCashFlowsfromFinancingActivities||(651,587,791.36)|(689,390,714.75)|
|IV. EffectofForeignExchangeRateChangesonCashandCashEquivalents||1,046,355.96|306,212.13|
|V. NetIncrease(Decrease)inCashandCashEquivalents||(234,214,110.51)|50,188,733.28|
|Add:OpeningbalanceofCashandCashEquivalents||331,615,767.60|281,427,034.32|
|VI. ClosingBalanceofCashandCashEquivalents||97,401,657.09|331,615,767.60|

 Theaccompanying notes form part ofthe financial statements.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
FOR THE YEAR ENDED 31DECEMBER 2016
Consolidated Statement ofChanges inShareholders' Equity
Unit:RMB
||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ITEM|2016|||||||||2015|||||||||
||Attributabletoshareholdersoftheparent|||||||Minorityinterests|Totalshareholders'equity|Attributabletoshareholdersoftheparent|||||||Minorityinterests|Totalshareholders'equity|
||Sharecapital|Capitalreserve|Othercomprehensiveincome|Specialreserve|Surplusreserve|Unappropriatedprofit|Others|||Sharecapital|Capitalreserve|Othercomprehensiveincome|Specialreserve|Surplusreserve|Unappropriatedprofit|Others|||
|I.Closingbalanceoftheprecedingyear|644,763,730.00|165,564,739.15|(7,889,646.43)|3,719,755.58|520,074,434.56|3,113,367,524.19|-|789,709,893.07|5,229,310,430.12|644,763,730.00|162,698,555.65|(8,977,146.43)|2,219,777.52|520,074,434.56|2,794,519,480.29|-|760,300,768.84|4,875,599,600.43|
|Add:Changesinaccountingpolicies|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Correctionsofpriorperioderrors|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|II.Openingbalanceoftheyear|644,763,730.00|165,564,739.15|(7,889,646.43)|3,719,755.58|520,074,434.56|3,113,367,524.19|-|789,709,893.07|5,229,310,430.12|644,763,730.00|162,698,555.65|(8,977,146.43)|2,219,777.52|520,074,434.56|2,794,519,480.29|-|760,300,768.84|4,875,599,600.43|
|III.Changesfortheyear|-|1,915,642.10|(150,000.00)|426,010.07|-|268,023,363.67|-|137,468,290.46|407,683,306.30|-|2,866,183.50|1,087,500.00|1,499,978.06|-|318,848,043.90|-|29,409,124.23|353,710,829.69|
|(I)Totalcomprehensiveincome|-|-|(150,000.00)|-|-|532,376,492.97|-|137,473,210.75|669,699,703.72|-|-|1,087,500.00|-|-|527,751,492.42|-|124,966,166.19|653,805,158.61|
|(II)Owners’contributionsandreductionincapital|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|1.Capitalcontributionfromshareholders|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|2.Share-basedpaymentrecognisedinshareholders'equity|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|3.Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|(III)Profitdistribution|-|-|-|-|-|(264,353,129.30)|-|-|(264,353,129.30)|-|-|-|-|-|(208,903,448.52)|-|(95,620,966.90)|(304,524,415.42)|
|1.Transfertosurplusreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|2.Transfertogeneralreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|3.Distributionstoshareholders|-|-|-|-|-|(264,353,129.30)|-|-|(264,353,129.30)|-|-|-|-|-|(208,903,448.52)|-|(95,620,966.90)|(304,524,415.42)|
|4.Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|(IV)Transferswithinshareholders'equity|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|1.Capitalisationofcapitalreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|2.Capitalisationofsurplusreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|3.Lossmadeupbysurplusreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|4.Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|(V)Specialreserve|-|-|-|426,010.07|-|-|-|(4,920.29)|421,089.78|-|-|-|1,499,978.06|-|-|-|63,924.94|1,563,903.00|
|1.Withdrawnintheperiod|-|-|-|19,844,261.39|-|-|-|3,842,861.21|23,687,122.60|-|-|-|15,469,088.96|-|-|-|4,006,535.25|19,475,624.21|
|2.Utilizedintheperiod|-|-|-|(19,418,251.32)|-|-|-|(3,847,781.50)|(23,266,032.82)|-|-|-|(13,969,110.90)|-|-|-|(3,942,610.31)|(17,911,721.21)|
|(VI)Others|-|1,915,642.10|-|-|-|-|-|-|1,915,642.10|-|2,866,183.50|-|-|-|-|-|-|2,866,183.50|
|IV.Closingbalanceoftheyear|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|644,763,730.00|165,564,739.15|(7,889,646.43)|3,719,755.58|520,074,434.56|3,113,367,524.19|-|789,709,893.07|5,229,310,430.12|

 Theaccompanying notes form part ofthe financial statements.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
FOR THE YEAR ENDED 31DECEMBER 2016
StatementofChangesinShareholders'EquityoftheCompany
Unit:RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ITEM|2016|||||||2015|||||||
||Sharecapital|Capitalreserve|Othercomprehensiveincome|Specialreserve|Surplusreserve|Unappropriatedprofit|Totalshareholders'equity|Sharecapital|Capitalreserve|Othercomprehensiveincome|Specialreserve|Surplusreserve|Unappropriatedprofit|Totalshareholders'equity|
|I.Closingbalanceoftheprecedingyear|644,763,730.00|239,043,433.54|5,822,500.00|1,465,450.61|520,074,434.56|703,644,298.05|2,114,813,846.76|644,763,730.00|204,296,719.24|4,735,000.00|-|520,074,434.56|648,306,530.85|2,022,176,414.65|
|Add:Changesinaccountingpolicies|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Correctionsofpriorperioderrors|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|II.Openingbalanceoftheyear|644,763,730.00|239,043,433.54|5,822,500.00|1,465,450.61|520,074,434.56|703,644,298.05|2,114,813,846.76|644,763,730.00|204,296,719.24|4,735,000.00|-|520,074,434.56|648,306,530.85|2,022,176,414.65|
|III.Changesfortheyear|-|957,821.05|(150,000.00)|(437,907.36)|-|(68,878,898.19)|(68,508,984.50)|-|34,746,714.30|1,087,500.00|1,465,450.61|-|55,337,767.20|92,637,432.11|
|(I)Totalcomprehensiveincome|-|-|(150,000.00)|-|-|195,474,231.11|195,324,231.11|-|-|1,087,500.00|-|-|264,241,215.72|265,328,715.72|
|(II)Owners’contributionsandreductionincapital|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|1.Capitalcontributionfromshareholders|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|2.Share-basedpaymentrecognisedinshareholders'equity|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|3.Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|(III)Profitdistribution|-|-|-|-|-|(264,353,129.30)|(264,353,129.30)|-|-|-|-|-|(208,903,448.52)|(208,903,448.52)|
|1.Transfertosurplusreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|2.Transfertogeneralreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|3.Distributionstoshareholders|-|-|-|-|-|(264,353,129.30)|(264,353,129.30)|-|-|-|-|-|(208,903,448.52)|(208,903,448.52)|
|4.Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|(IV)Transferswithinshareholders'equity|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|1.Capitalisationofcapitalreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|2.Capitalisationofsurplusreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|3.Lossmadeupbysurplusreserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|4.Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|(V)Specialreserve|-|-|-|(437,907.36)|-|-|(437,907.36)|-|-|-|1,296,180.48|-|-|1,296,180.48|
|1.Transfertospecialreserveintheperiod|-|-|-|2,621,610.60|-|-|2,621,610.60|-|-|-|2,927,499.53|-|-|2,927,499.53|
|2.Utilizedintheperiod|-|-|-|(3,059,517.96)|-|-|(3,059,517.96)|-|-|-|(1,631,319.05)|-|-|(1,631,319.05)|
|(VI)Others|-|957,821.05|-|-|-|-|957,821.05|-|34,746,714.30|-|169,270.13|-|-|34,915,984.43|
|IV.Closingbalanceoftheyear|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|644,763,730.00|239,043,433.54|5,822,500.00|1,465,450.61|520,074,434.56|703,644,298.05|2,114,813,846.76|

Theaccompanying notes form part ofthe financial statements.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(I) GENERALINFORMATIONOFTHECOMPANY
Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred to as the"Company") was a stock limited company incorporated on16January 1993.
Theheadquarters of theCompanyis located in ShenzhenGuangdong Province. TheCompany and its subsidiaries (collectively the "Group")are principally engaged in theprovisionofcargo handling, warehousing, landand sea transportation services, cargo packing, agency business and otherservices.
Thecompany's andconsolidated financial statements have been approved bytheBoard of Directors on24March 2017.
Thescope ofconsolidated financial statements inthe current period involves 10subsidiaries. See Note(VI) "Equity in otherentities" fordetails.
(II) BASISOFPREPARATIONOF FINANCIAL STATEMENTS
Basis ofpreparation of financialstatements
TheGroup has adopted theAccounting Standards forBusiness Enterprises issued bytheMinistry ofFinance (MoF) includingthe newand modifiedones in 2014.In addition, theGroup has disclosed relevant financial information in accordance with Information Disclosureand Presentation Rules forCompanies Offering Securities to thePublicNo. 15-General Provisions on Financial Reporting (Revised in 2014).
Basis ofaccounting andprincipleofmeasurement
TheGroup has adopted theaccrual basis of accounting. Except forcertain financial instruments which are measured at fairvalue, theGroup adopts thehistorical cost as the principleof measurement ofthefinancial statements. Upon being restructured into astock company, thefixed assets and intangible assets initially contributed bythestate-owned shareholders are recognized based onthe valuation amounts confirmed bythestate-owned assets administration department. Whereassets are impaired, provisions forasset impairment are madein accordance with the relevant requirements.
Wherethehistorical cost isadopted as themeasurement basis, assets are recorded at theamount ofcash orcash equivalents paid orthe fair valueoftheconsideration given toacquire them at the timeof theiracquisition. Liabilitiesare recorded at the amount ofproceeds orassets received or thecontractual amounts for assuming thepresent obligation, or, at theamounts of cash or cash equivalents expected tobepaid tosettle theliabilities in thenormal course ofbusiness. Fair valueis theprice that would bereceived to sell an asset orpaid totransfer aliability inan orderly transaction between market participants at themeasurement date, regardless ofwhether that price isdirectly observable orestimated usingvaluation technique. Fair value measurement and/ordisclosure inthe financial statements are determined according to theabovebasis.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(II) BASISOFPREPARATIONOF FINANCIAL STATEMENTS-continueed
Fair valuemeasurements are categorised intoLevel 1,2or3based onthedegree towhich the inputsto thefair value measurements are observable andthesignificance of theinputsto thefair valuemeasurement inits entirety, which are described as follows:
Level 1inputs are unadjusted quoted prices in active markets for identical assets or liabilities that theentity canaccess at themeasurement date;
Level 2inputs are inputs,other than quotedprices included within Level 1,that are observable for theasset or liability, eitherdirectly orindirectly; and
Level 3inputs are unobservable inputs fortheasset orliability.
Going Concern
TheGroup evaluated itsgoing concern ability within 12monthssince 31December 2016.No events or circumstances are noted, which could cause significant doubt upontheentity's abilityto continueas going concern. Hence, thefinancial statements have been prepared ona going concern basis.
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES
Allthe following significant accounting policiesand accounting estimates are based on Accounting Standards forBusiness Enterprises("ASBE").
1.Statementofcompliance withthe ASBE
Thefinancial statements oftheCompany havebeen prepared in accordance with ASBE, and present trulyand completely, theCompany's andconsolidated financial positionas of31 December 2016,and theCompany's and consolidated results ofoperations andcash flows for the year then ended.
2.Accounting period
TheGroup has adopted thecalendaryear as itsaccounting year, e.g. from 1January to 31 December.
3.Operating cycle
Buginese cycle is referred to theperiod from which an enterprise buys assets to manufactureto thedateit achieves cash orcash equivalents.
4.Functionalcurrency
Renminbi("RMB") is thecurrency of theprimary economic environment inwhich theCompany and its subsidiaries operate. Therefore, theCompany and itssubsidiaries choose RMBas their
functional currency. TheGroup adopts RMBto prepare itsfinancial statements.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
5.Theaccountingtreatment ofbusinesscombinations involvingornotinvolving enterprises undercommon control
Business combinations are classified into businesscombinations involvingenterprises under common control and business combinations not involvingenterprises undercommon control. 5.1Business combinations involving enterprises under common control
Abusiness combination involvingenterprises under common control is abusiness combination in which all ofthe combiningenterprises are ultimately controlled bythesame party orparties both before and afterthe combination, and that control is not transitory.
Assets and liabilities obtained shall bemeasured at their respectivecarrying amounts as recorded bythecombining entitiesat thedate ofthe combination. Thedifference between thecarrying amount ofthenet assets obtained and thecarrying amount oftheconsideration paidforthe combination isadjusted tothe sharepremium in capital reserve. If theshare premium is not sufficient to absorb thedifference, any excess shallbe adjusted against retained earnings. Coststhat are directly attributabletothe combination are charged to profit or lossin theperiod in which they are incurred.
5.2Business combinations notinvolving enterprises under common controlandgoodwill Abusiness combination not involvingenterprises under common control isa business
combination inwhich all ofthecombining enterprises are not ultimatelycontrolled bythesame party or parties before and after thecombination.
Thecost of combination istheaggregate ofthefair values, at theacquisition date, of theassets given, liabilities incurred orassumed, and equity securities issued bytheacquirer, in exchange for control oftheacquire. Wherea businesscombination not involving enterprises under common control is achieved instages that involvemultipletransactions, thecost of combination isthesum oftheconsideration paid at theacquisition date and thefair value at theacquisition dateof the acquirer's previously held interest in theacquiree. Theintermediary expenses (fees in respect of auditing, legal services, valuation and consultancy services, etc.) and otheradministrative expenses attributableto thebusiness combination are recognizedinprofit or loss inthe periods when they are incurred.
Theacquiree's identifiableassets, liabilities and contingent liabilities acquired bytheacquirer in a business combination that meet therecognitioncriteria shallbe measured at fair valueat the acquisition date.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
5.Theaccountingtreatmentofbusinesscombinationsinvolvingornotinvolvingenterprises undercommoncontrol-continued
5.2Business combinations notinvolving enterprises under common controlandgoodwill- continued
Wherethecost ofcombinationexceeds theacquirer's interest inthefair valueof theacquiree's identifiablenet assets, thedifference is treated as an asset andrecognized as goodwill, which is measured at cost oninitial recognition. Wherethe cost ofcombination is less than theacquirer's interest in thefair value ofthe acquiree's identifiable net assets, theacquirer reassesses the measurement ofthefair values of theacquiree's identifiableassets, liabilities and contingent liabilities and measurement ofthecost ofcombination. If after that reassessment, thecost of combination isstillless than theacquirer's interest inthe fairvalue oftheacquiree's identifiable net assets, theacquirer recognizesthe remaining difference immediately inprofit orloss for the current period.
Goodwillarising onabusiness combination is measured at cost less accumulated impairment losses, andis presented separately in theconsolidated financial statements.
6.Preparation ofconsolidatedfinancialstatements
Thescope ofconsolidation intheconsolidated financial statements is determined onthebasis of control. Control existswhen theinvestorhas powerover theinvestee; isexposed, orhas rights, to variable returns from itsinvolvement with theinvestee; andhas theability to useits power over theinvestee toaffect itsreturns.The Group reassesses whether ornot it controls an investee if facts andcircumstances indicate that there are changes oftheabove elements ofthedefinition of control.
Consolidationofa subsidiary begins when the Group obtains control over thesubsidiaries and ceases when theGroup loses controlof thesubsidiary.
For asubsidiary already disposed of bytheGroup, theoperating results and cash flows before the dateof disposal(the date when control is lost)are included intheconsolidated income statement and consolidated statement ofcash flows, as appropriate.
For subsidiaries acquired through abusiness combination involving enterprises not under common control, theoperating results andcash flows from the acquisition date(thedate when control is obtained)are included in theconsolidated incomestatement andconsolidated statement ofcash flows, as appropriate.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
6.Preparation ofconsolidatedfinancialstatements -continued
No matterwhen thebusiness combination occurs in thereporting period, subsidiaries acquired through abusiness combination involvingenterprises under common control are included in the Group's scope ofconsolidation as ifthey hadbeen included in thescope ofconsolidation from the datewhen they first came under thecommon control ofthe ultimatecontrolling party.Their operatingresults and cash flows from thedate when they first came under thecommon control of theultimatecontrollingparty are included intheconsolidated incomestatement and consolidated statement ofcash flows, as appropriate.
Thesignificant accounting policies and accounting periods adopted bythesubsidiaries are determined based onthe uniform accounting policies and accounting periods set out bythe Company.
Allsignificant intra-group balances andtransactions are eliminated onconsolidation.
Theportion ofsubsidiaries' equity that is not attributableto theparent is treated as minority interests and presented as "minority interests" in theconsolidated balance sheet under
shareholders' equity. The portionof net profits orlosses of subsidiaries fortheperiod attributable tominority interests is presented as "minority interests" intheconsolidated incomestatement underthe "net profit" lineitem.
When theamount ofloss fortheperiod attributableto theminority shareholders ofa subsidiary exceeds theminority shareholders' portion oftheopening balance ofshareholders' equity ofthe subsidiary, theexcess amount is stillallocated against minorityinterests.
Acquisitionof minorityinterests or disposalsof interests in asubsidiary that donot result in the lossof control over thesubsidiary are accounted for as equity transactions. Thecarrying amounts oftheparent's interests and minorityinterests are adjustedto reflect thechanges intheirrelative interests in thesubsidiary. The difference between theamount bywhich theminorityinterests are adjusted and the fairvalue oftheconsideration paid or received is adjusted to shareholders' equity (capital reserve). If thecapital reserve is not sufficient to absorb thedifference, theexcessare adjusted against retained earnings.
When theGroup loses control overa subsidiarydue to disposalof equity investment orother reason, any retained interest isre-measured at itsfair valueat thedatewhen control is lost.The difference between (i)the aggregateof theconsideration received ondisposal andthefair value of any retained interest and (ii)theshare of theformer subsidiary's net assets cumulatively calculated from theacquisition date according to theoriginal proportion ofownership interests is recognized as investment incomein theperiod in which control is lost,and the goodwillis offset accordingly. Othercomprehensive incomeassociated with investment inthe former subsidiary is reclassified to investment incomein theperiod in which control islost.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
7.Types ofjointarrangements and theaccounting treatment ofjointoperation
There are two types of jointarrangements - jointoperations and jointventures. The classification ofjointarrangements under is determined based ontherights andobligations ofparties tothe jointarrangements byconsidering thestructure, thelegal form of thearrangements, the contractual terms agreed bythe parties to thearrangement. Ajoint operation is ajoint
arrangement whereby theparties that have joint control ofthearrangement have rights tothe assets, and obligations forthe liabilities, relating to thearrangement. Ajointventure is a joint arrangement whereby theparties that have joint control ofthearrangement have rights to thenet assets of thearrangement.
Investments in jointventures are accounted for using theequity method bytheGroup, which is detailed in Note(III) 13.3.2Along-term equity investmentaccounted for using theequity method. TheGroup as ajoint operator recognizesthe following itemsinrelation to its interest inajoint operation:(1) itssolely-held assets, including itsshare ofany assets held jointly; (2) itssolely- assumed liabilities, including its share ofany liabilities incurred jointly; (3)itsrevenue from the saleof itsshare ofthe outputarising from thejointoperation;(4) its share oftherevenue from the saleof theoutputbythejoint operation; and (5)itssolely-incurred expenses, including itsshare of any expenses incurred jointly. TheGroup accounts for therecognised assets, liabilities, revenues and expenses relating toits interest in ajointoperation inaccordance withtherequirements applicable tothe particular assets, liabilities, revenues and expenses.
8.Recognition criteria ofcash andcash equivalents
Cash comprises cash onhand and deposits that canbereadily withdrawn ondemand. Cash equivalents are the Group's short-term, highly liquidinvestments that are readily convertible to known amounts ofcash and which aresubject to aninsignificant risk ofchanges in value. 9.Foreigncurrency transactions
9.1Transactionsdenominated inforeign currencies
Aforeign currency transaction is recorded, oninitial recognition, byapplying thespotexchange rate onthedateof thetransaction.
At thebalance sheet date, foreign currency monetary items are translated intoRMB usingthe spot exchangerates at thebalance sheet date. Exchange differences arising from thedifferences between thespot exchange rates prevailing at thebalance sheet dateand thoseoninitial recognitionorat theprevious balance sheet date are recognized inprofit orloss for theperiod, except that (1)exchange differences related to aspecific-purpose borrowing denominated in foreign currency that qualify forcapitalization are capitalized as part ofthecost ofthequalifying asset during thecapitalization period; (2) exchange differences related tohedging instrumentsfor thepurpose ofhedging against foreign currency risks are accounted for usinghedge accounting; (3)exchange differences arising from change inthe carrying amounts otherthan the amortized cost ofavailable-for-sale monetary items are included inothercomprehensive income.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
9.Foreigncurrency transactions
9.1Transactionsdenominated inforeign currencies - continued
Foreign currency non-monetary itemsmeasured at historical cost are translated to theamounts in functional currency at thespot exchange rates onthe dates ofthetransactions; theamounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair valueare re-translated at thespot exchange rate onthedatethefair value is determined. Differencebetween there-translated functional currency amount and theoriginal functional currency amount istreated as changes infair value including changes ofexchangerate and is recognizedin profit and lossor included in othercomprehensive income.
10.Financialinstruments
Financial assets and financial liabilities are recognized when theGroup becomes a party to the contractual provisions oftheinstrument. Financial assets and financial liabilities are initially measured at fair value. For financial assets and financial liabilities at fair valuethrough profit or loss,transaction costs are immediately recognized inprofit orloss. Forother financial assets and financial liabilities, transaction costs are included in theirinitialrecognized amounts.
10.1Effective interest method
Theeffective interest method is amethod of calculating the amortizedcost of afinancial asset ora financial liability (ora group offinancial assets or financial liabilities)and ofallocating the interest incomeor interest expenseover therelevant period, using the effectiveinterest rate. The effective interest rate istherate that exactly discounts estimated future cash flows through the expected lifeof thefinancial asset orfinancial liabilityor, where appropriate, a shorterperiod to thenet carrying amount ofthefinancial asset orfinancial liability.
When calculating the effectiveinterest rate, theGroup estimates future cash flows considering all contractual terms of thefinancial asset orfinancial liability (without considering future credit losses), and also considers all fees paidor received between theparties to thecontract giving rise tothe financial asset andfinancial liabilitythat are an integral part oftheeffective interest rate, transactioncosts, and premiums ordiscounts etc.
10.2Classification,recognition andmeasurement offinancial assets
On initialrecognition, theGroup's financial assets are classified into oneofthe fourcategories, includingfinancial assets at fair valuethrough profit or loss("FVTPL"), held-to-maturity investments,loans andreceivables, and available-for-sale financial assets. Allregular way purchases orsales offinancial assets are recognized andderecognized ona tradedate basis.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
10.Financialinstruments -continued
10.2Classification,recognition andmeasurement offinancial assets -continued
10.2.1Financial Assets atFair Valuethrough Profitor Loss ("FVTPL")
Financial assets at fair valuethrough profit orloss ("FVTPL") includefinancial assets heldfor trading and thosedesignated as at fairvalue through profit orloss.
Afinancial asset is classified as held fortrading ifoneof thefollowing conditionsis satisfied: (1) ithas been acquired principally for thepurposeof sellinginthenear term; or (2)oninitial recognitionit ispart ofa portfolioof identified financial instruments thatthe Groupmanages togetherand there isobjective evidence that theGroup has arecent actual pattern of short-term profit-taking; or(3) itis a derivativethat is not designated and effectiveas ahedging instrument, orafinancial guarantee contract, oraderivative that is linked to and must besettled bydelivery ofan unquoted equity instrument(without aquoted pricein an activemarket) whosefair value cannot be reliably measured.
Afinancial asset maybe designated as at FVTPL uponinitial recognition onlywhen oneofthe following conditionsis satisfied: (1) suchdesignation eliminates orsignificantly reduces a measurement orrecognition inconsistency that would otherwise result from measuring assets or recognizingthegains orlosses onthem ondifferent bases; or(2) thefinancial asset forms part of agroup of financial assets ora group offinancial assets and financial liabilities, which is managed and its performance isevaluated onafair valuebasis, in accordance with theGroup's documented risk management orinvestment strategy, and information about thegrouping is reported to key management personnel onthat basis;or(3) eligible hybrid instruments that contain embedded derivatives.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or lossesarising from changes in thefair value and any dividend or interest incomeearned onthefinancial assets are recognized inprofit or loss.
10.2.2Held-to-maturityinvestments
Held-to-maturityinvestments are non-derivativefinancial assets with fixed ordeterminable payments and fixed maturity dates that theGroup's management has thepositiveintentionand abilitytohold to maturity.
Held-to-maturityinvestments are subsequently measured at amortized costusing the effective interest method. Gain or lossarising from derecognition, impairment oramortizationis recognizedin profit or loss.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
10.Financialinstruments -continued
10.2Classification,recognition andmeasurement offinancial assets -continued
10.2.3Loansandreceivables
Loans and receivables are non-derivativefinancial assets withfixed ordeterminable payments that are not quoted in an activemarket. Financial assets classified as loans and receivables bythe Group include notes receivable, accounts receivable, interest receivable, dividends receivable, and otherreceivables.
Loans and receivables are subsequently measured at amortizedcost usingtheeffective interest method. Gain orloss arising from derecognition, impairmentor amortizationis recognized in profit orloss.
10.2.4Available-for-salefinancial assets
Available-for-salefinancial assets include non-derivative financial assets that are designated on initialrecognition as availablefor sale, and financial assets that are not classified as financial assets at fair valuethrough profit orloss, loans andreceivables orheld-to-maturity investments. Available-for-salefinancial assets are subsequently measured at fair value, and gains orlosses arising from changes in thefair value are recognized asother comprehensiveincome and included inthe capital reserve, except that impairment losses and exchangedifferences related to amortized cost offinancial assets are recognized in profit orloss, untilthefinancial assets are derecognized, at which timethegains or losses are released and recognized in profit orloss.
Interests obtained and the dividendsdeclared bytheinvestee during theperiod inwhich the available-for-salefinancial assets are held, are recognized in investment gains.
Investments in equity instrumentsthat donot have aquoted market price in an active market and whosefair value cannot be reliably measured, and derivativefinancial assets that are linked toand mustbe settled bydelivery of such unquoted equity instrumentsare measured at cost.
10.3Impairment of financialassets
TheGroup assesses at each balance sheet datethecarrying amountsof financial assets otherthan thoseat fair valuethrough profit orloss.If there is objectiveevidence that a financial asset is impaired, theGroup determines theamount ofany impairment loss. Objective evidence that a financial asset is impaired is evidence that, arising from oneormore events that occurred after the initialrecognition of theasset, theestimated futurecash flows of thefinancial asset, which can be reliably measured, have been affected.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
10.Financialinstruments -continued
10.3Impairment of financialassets -continued
Objectiveevidence that afinancial asset is impaired includes thefollowing observable events: (1) Significant financial difficulty oftheissuer orobligor;
(2) A breach ofcontract bytheborrower, suchas adefault ordelinquency ininterest orprincipal payments;
(3) The Group, for economic orlegal reasons relating tothe borrower's financial difficulty, granting a concession to theborrower;
(4) It becoming probablethat the borrower will enter bankruptcy orotherfinancial
reorganizations;
(5) The disappearance ofan activemarket for that financial asset because of financial difficulties ofthe issuer;
(6) Upon an overall assessment ofa group offinancial assets, observable dataindicates that there is ameasurable decrease inthe estimated future cash flows from thegroup offinancial assets since theinitialrecognition ofthoseassets, although thedecrease cannot yet be identified with theindividual financial assets in thegroup. Such observable data includes:
-Adverse changes in thepayment status ofborrower inthegroup ofassets;
-Economic conditionsin thecountry orregion oftheborrower which may lead to afailure to pay thegroup ofassets;
(7) Significant adverse changes inthetechnological, market, economicor legal environment in which theissuerofequity instruments operates, indicating that thecost of theinvestmentin the equity instrumentmay not be recovered bythe investor;
(8) A significant orprolonged decline in thefair value ofan investment in anequity instrument below itscost;
(9) Other objective evidence indicating there isan impairment ofafinancial asset.
-Impairment offinancial assets measured atamortized cost
If financial assets carried at cost or amortizedcost are impaired, thecarrying amounts of the financial assets are reduced to thepresent value ofestimated future cash flows (excluding future creditlosses that have not been incurred) discounted at the financial asset's original effective interest rate. The amount ofreduction is recognized as animpairment loss inprofit orloss. If, subsequent to therecognition ofan impairment loss onfinancial assets carried at amortizedcost, there isobjective evidence of arecovery invalue ofthefinancial assets which can berelated objectively to an event occurring after theimpairment is recognized,the previously recognized impairment lossis reversed. However, thereversal does not result inacarrying amount of the financial asset that exceeds what theamortized cost would have been had theimpairment not been recognizedat the datethe impairmentis reversed.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
10.Financialinstruments -continued
10.3Impairment of financial assets -continued
-Impairment offinancial assets measured atamortized cost -continued
For afinancial asset that is individuallysignificant, the Group assesses theasset individually for impairment. For afinancial asset that is notindividually significant, theGroup assesses theasset individuallyfor impairment orincludes the asset in agroup offinancial assets withsimilarcredit risk characteristics and collectively assesses them for impairment. If theGroup determines that no objectiveevidence ofimpairment exists foran individually assessed financial asset (whether significant ornot), it includes theasset in agroup offinancial assets withsimilarcredit risk characteristics and collectively assesses them for impairment. Assets forwhich an impairment lossis individuallyrecognized are not included in acollective assessment of impairment. -Impairment ofavailable-for-sale financial assets
When anavailable-for-salefinancial asset isimpaired, thecumulativeloss arising from decline in fair valuepreviously recognized directly in other comprehensive incomeis reclassified from the capital reserve toprofit orloss. Theamount ofthe cumulativeloss that isreclassified from capital reserveto profit or lossis thedifference between theacquisitioncost (net ofany principal repayment and amortization)and thecurrent fairvalue, less any impairment loss onthat financial asset previously recognized inprofit orloss.
If, subsequent to therecognition of an impairment lossonavailable-for-sale financial assets, there is objectiveevidence of arecovery in valueofthefinancial assets which can berelated objectively to an event occurring after theimpairment is recognized,the previously recognized impairment lossis reversed. Theamount ofreversal ofimpairment loss onavailable-for-sale equity instrumentsis recognized as othercomprehensive incomeand included in thecapital reserve, while theamount ofreversal of impairment lossonavailable-for-sale debt instruments is recognizedin profit or loss.
-Impairment of financialassets measured at cost
If an impairment losshas been incurred onan investment in unquoted equity instrument(without aquoted price in anactive market) whose fairvalue cannot be reliably measured, or ona derivative financial asset that islinked toand must besettled bydelivery ofsuch anunquoted equity instrument,the carrying amount ofthefinancial asset is reduced tothepresent value of estimated future cash flows discounted at thecurrent market rate ofreturn for asimilar financial asset. The amount ofreduction is recognized as an impairment lossinprofit orloss. The impairment lossonsuch financial asset isnot reversed once itis recognized.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
10.Financialinstruments -continued
10.4Transferof financialassets
TheGroup derecognizesa financial asset ifone ofthefollowing conditions is satisfied:(1) the contractual rights to thecash flows from thefinancial asset expire; or(2) thefinancial asset has been transferred and substantially all therisksand rewards of ownership of thefinancial asset is transferred to thetransferee; or(3) although thefinancial asset has been transferred, theGroup neithertransfers norretains substantiallyall therisks and rewards ofownership ofthe financial asset but has not retained control of thefinancial asset.
If the Group neither transfers norretains substantiallyall therisks and rewards of ownership of a financial asset, andit retains control ofthefinancial asset, it recognizes thefinancial asset to the extentofits continuing involvement inthe transferred financial asset andrecognizes anassociated liability. Theextent oftheGroup's continuinginvolvement in thetransferred asset istheextent to which it isexposed to changes in thevalueof thetransferred asset.
For atransfer of afinancial asset initsentirety that satisfies thederecognition criteria, the difference between (1) thecarrying amount ofthefinancial asset transferred; and (2) thesumof theconsideration received from thetransfer and any cumulativegain or lossthat has been recognizedin other comprehensive income, is recognized in profit orloss.
If a part of thetransferred financial asset qualifies for derecognition, thecarrying amount ofthe transferred financial asset is allocated between thepart that continues tobe recognized and the part that is derecognized, based onthe respective fair values ofthose parts. The difference between (1) thecarrying amount allocated tothe part derecognized; and (2) thesum ofthe considerationreceived for thepart derecognized and anycumulativegain orlossallocated tothe part derecognized which has been previously recognizedinother comprehensive income, is recognizedin profit or loss
10.5Classification,recognition andmeasurement offinancial liabilities
Debt and equityinstruments issued bytheGroup are classified into financial liabilities orequity onthebasis ofthesubstance of thecontractual arrangements and definitions offinancial liability and equity instrument.
On initialrecognition, financial liabilities are classified into financial liabilities at fair value through profit orloss and other financial liabilities.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
10.Financialinstruments -continued
10.5.1Financial liabilitiesat fair valuethrough profitor loss
Financial liabilities at FVTPL consist offinancial liabilities held for trading andthosedesignated as at FVTPL oninitial recognition.
Afinancial liability is classified as held for trading if oneofthefollowing conditions is satisfied: (1)It has been acquired principally for thepurposeof repurchasing in thenear term; or(2) On initialrecognition it is part of aportfolio ofidentified financial instruments that theGroup manages together and there isobjective evidence that theGroup has arecent actual pattern of short-term profit-taking; or(3) It is a derivative, except for aderivative that is adesignated and effective hedging instrument, ora financial guaranteecontract, or aderivative that is linked to and mustbe settled bydelivery of an unquoted equity instrument (without aquoted price inan active market) whosefair value cannot bereliably measured.
Afinancial liability may be designated as at FVTPL uponinitial recognition only whenone ofthe following conditionsis satisfied: (1) suchdesignation eliminates orsignificantly reduces a measurement orrecognition inconsistency that would otherwise result from measuring liabilities orrecognizing the gains or lossesonthem ondifferent bases; or(2) thefinancial liability forms part of agroup of financial liabilities oragroup of financial assets andfinancial liabilities, which is managed and itsperformance isevaluated ona fair valuebasis, in accordance with theGroup's documented risk management orinvestment strategy, and information about thegrouping is reported to key management personnel onthat basis;or (3)eligible hybrid instruments that contain embedded derivatives.
Financial liabilities at FVTPL are subsequently measured at fair value, andany gains orlosses arising from changes in thefair value orany dividend or interest expenserelated with the financial liabilities are recognized in profit or loss.
10.5.2Other financial liabilities
For aderivative liabilitythat is linkedtoand mustbe settledbydelivery of anunquoted equity instrument(without a quotedprice inan active market) whosefair valuecannot bereliably measured, itis subsequently measured at cost. Other financial liabilities are subsequently measured at amortized cost usingthe effective interest method, with gains orlosses arising from derecognition oramortizationrecognized in profit orloss.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
10.Financialinstruments -continued
10.5Classificationandrecognition of financial liabilities- continued
10.5.3Financial guaranteecontracts
Afinancial guarantee contract is a contract bywhich theguarantorand thelender agree that the guarantorwould settlethedebts orbear obligations in accordance withterms ofthe contract in case theborrowerfails to settle thedebts. Financial guaranteecontracts that are not designated as financial liabilities at fairvalue through profit or loss,are initially measured at theirfair values less thedirectly attributable transaction costs. Subsequentto initial recognition, theyare measured at thehigher of: (i)theamount determined in accordance withAccounting Standard for Business Enterprises No. 13-Contingencies; and (ii)theamount initially recognizedless cumulative amortizationrecognized in accordance with theprinciples set outin Accounting Standard for Business Enterprises No. 14- Revenue.
10.6Derecognitionof Financial Liabilities
TheGroup derecognizesa financial liability(or part ofit)when theunderlying present obligation (orpart ofit)is discharged. An agreement between theGroup (an existingborrower) and an existinglender to replacethe original financial liability with anewfinancial liabilitywith substantiallydifferent terms isaccounted foras anextinguishment oftheoriginal financial liabilityand therecognition ofanew financial liability.
When theGroup derecognizes afinancial liabilityor apart ofit,it recognizes thedifference between thecarrying amount of thefinancial liability (orpart ofthefinancial liability) derecognized and theconsideration paid (including any non-cash assets transferred ornew financial liabilities assumed) inprofit orloss.
10.7Offsettingfinancial assets andfinancialliabilities
WheretheGroup has a legal right that is currentlyenforceable to setoff therecognized amounts, and intends either tosettle onanet basis, orto realizethefinancial asset and settlethefinancial liabilitysimultaneously, a financial asset and a financial liability shallbe offset with thenet amount presented in thebalance sheet. Except for thecircumstances above, financial assets and financial liabilities shall bepresented separately in thebalance sheet and shallnot be offset. 10.8Equityinstruments
An equity instrument isany contract that evidences aresidual interest in theassets of theGroup after deducting all ofits liabilities. Theissuance including refinancing, repurchase, sale or cancellation ofequity instrument oftheGroup is recognized as movement of shareholders' equity. TheGroup does not recognizeany changes in thefair valueofequity instruments. Transaction costs associated withequity transactions are deducted from shareholders' equity.
Thedistributionsmade bytheGroup toholders oftheequity instruments are recognized as profit
distribution.Anyissuance ofstock dividends donot affect theshareholders' equity.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
11.Receivables
11.1Receivables that areindividuallysignificant andfor which baddebt provision isindividually assessed
|||
|-|-|
|Basisormonetarycriteriafordeterminingindividuallysignificantreceivables|TopfivebalancesofreceivablesaredeemedasindividuallysignificantreceivablesbytheGroup.|
|Provisionmethodsforreceivablesthatareindividuallysignificantandforwhichbaddebtprovisionisindividuallyassessed|Forreceivablesthatareindividuallysignificant,theGroupassessesthereceivablesindividuallyforimpairment;forafinancialassetthatisnotimpairedindividually,theGroupincludestheassetinagroupoffinancialassetswithsimilarcreditriskcharacteristicsandcollectivelyassessesthemforimpairment.Receivablesforwhichanimpairmentlossisindividuallyrecognizedarenotincludedinacollectiveassessmentofimpairment.|

11.2Receivables for which baddebt provision is collectively assessed onacredit riskportfolio basis
||||
|-|-|-|
|Basisfordeterminingaportfolio|||
|Portfolio1||TheportfolioprimarilyincludesamountsduefromrelatedpartiesoftheGroup,depositsandpettycashetc.|
|Portfolio2||ThisportfolioexcludesamountsduefromrelatedpartiesoftheGroup,depositsandpettycashetc.|
|Baddebtprovisionmethodsforap|ortfolio||
|Portfolio1||SpecificIdentificationMethod|
|Portfolio2||AgingAnalysisMethod|

Portfoliosthat useaging analysis forbad debt provision:
||||
|-|-|-|
|Aging|Provisionproportionforaccountsreceivable(%)|Provisionproportionforotherreceivables(%)|
|Within90days(inclusive)|0|0|
|Morethan91daysbutnotexceeding183days|0-3|0-3|
|Morethan184daysbutnotexceeding year|5|5|
|Morethan1yearbutnotexceeding2 years|20|20|
|Morethan2yearsbutnotexceeding3years|50|50|
|Morethan3years|100|100|

 11.3Accounts receivable thatare not individuallysignificantbut for whichindividual baddebt provisionis individuallyassessed:
|||
|-|-|
|Reasonsformakingindividualbaddebtprovision|AsobjectiveevidenceindicatestheGroupisunabletocollectthereceivablesunderoriginalterms,thecompanymakesindividualbaddebtprovision.|
|Baddebtprovisionmethods|Underbaddebtprovisionmethod,theprovisionisrecognizedbythedifferencesbetweentheexpectedpresentvalueoffuturecashflowsandcarryingvalue.|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
12.Inventories
12.1Categories ofinventories
Inventories includespare parts, fuel, and lowvalue consumables. Inventories are initially measured at cost. Cost ofinventories comprises all costs of purchase, costs of conversion and otherexpenditures incurred in bringing theinventories to their present location and condition. 12.2Valuationmethod ofinventories upondelivery
Theactual cost ofinventories upondelivery is calculated using theweighted average method. 12.3Basis fordetermining net realizablevalueof inventories andprovision methods for decline invalue of inventories
At thebalance sheet date, inventories are measured at thelower ofcost and net realizablevalue. If thecost ofinventories ishigher than thenet realizablevalue, aprovision fordecline in valueof inventories is made. Net realizablevalue is theestimated sellingprice intheordinary course of business less theestimated costs ofcompletion, the estimatedcosts necessary to make thesaleand relevant taxes. Net realizablevalue isdetermined onthebasis of clear evidence obtained, after taking intoconsideration thepurposes ofinventories being held andeffect of postbalance sheet events.
Provisionfor declinein value ofother inventories ismade based ontheexcess ofcost of inventory over itsnet realizablevalueonan item-by-item basis.
After theprovision fordecline in valueof inventories is made, ifthe circumstances that previously caused inventories to bewritten down belowcost nolonger existso that thenet realizablevalue ofinventories is higher than theircost, theoriginal provisionfor declinein value is reversed and thereversal is included in profit orloss for theperiod.
12.4Inventorycount system
Theperpetual inventory system is maintained for stock system.
12.5Amortizationmethods for low costandshort-lived consumable items andpackaging materials
Packaging materials and lowcost and short-lived consumable itemsare amortized using the immediatewrite-off method.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
13.Long-term equityinvestments
13.1Basis fordetermining joint control andsignificant influenceover investee
Controlis archived when theGroup has thepower over theinvesteeand has rights to variable returns from itsinvolvement with theinvestee; and has the abilityto useitspower to affect its returns. Joint control is thecontractually agreed sharing ofcontrol over an economic activity, and existsonly when thestrategic financial and operating policy decisions relating to theactivity require theunanimous consent oftheparties sharing control. Significant influence is thepower to participate in thefinancial and operating policydecisions oftheinvestee but isnot control orjoint control over thosepolicies. When determining whether aninvesting enterpriseis abletoexercise control orsignificant influence over an investee, theeffect ofpotential voting rights of the investee(for example, warrants and convertible debts)heldbytheinvesting enterprises orother parties that are currently exercisable orconvertibleshall beconsidered.
13.2Determination of investment cost
For along-term equity investment acquired through abusiness combination involving enterprises undercommon control, theinvestment cost ofthelong-term equity investment is theattributable share of the carrying amount of the shareholders' equity of the acquiree at the date of combination. Thedifference between theinitial investment cost andthecarrying amount ofcash paid, non-cash assets transferred and liabilities assumed shall beadjusted tocapital reserve. If thebalance of capital reserve is not sufficient, any excessshall be adjusted to retained earnings. If the considerationof thecombination issatisfied bytheissueofequity securities, theinitial investment cost ofthelong-term equity investmentshall be theshare of party being absorbed of theowners' equity in theconsolidated financial statements ofthe ultimatecontrolling party at the dateof combination. Theaggregate face value oftheshares issued shall beaccounted for as share capital. The difference between theinitialinvestment costand theaggregate face value ofthe shares issued shall beadjusted to capital reserve. If thebalance of capital reserve isnot sufficient, any excess shall beadjusted to retained earnings.
For along-term equity investment acquired through businesscombination not involving enterprises under commoncontrol, theinvestment cost ofthelong-term equity investment acquired is thecost ofacquisition.
Theabsorbing party's orpurchaser's intermediary expenses (fees in respect ofauditing, legal services, valuation andconsultancy services, etc.) and other administrativeexpenses attributable tothe business combination are recognized in profit orloss in theperiods when theyare incurred. Thelong-term equity investmentacquired otherwise than through abusiness combination is initiallymeasured at its cost. Whentheentity is able to exercisesignificant influence orjoint control (but not control)over an investee dueto additional investment, thecost oflong-term equity investmentsis thesum ofthefair value ofpreviously-held equity investmentsdetermined
inaccordance with Accounting Standard for Business EnterprisesNo.22–Financial Instruments:
Recognition andMeasurement of(CAS 22) and theadditional investment cost.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
13.Long-term equityinvestments -continued
13.3Subsequent measurement andrecognition ofprofit orloss
13.3.1Along-termequity investment accounted for using thecost method
Long-term equity investments insubsidiaries are accounted for using thecost method in the Company's separate financial statements. Asubsidiary is an investeethat is controlled by the Group.
Under thecost method, along-term equity investmentis measured at initial investment cost. Additionalor withdrawing investment would affect the cost oflong-term equityinvestment. Investment incomeis recognized in theperiod in accordance with theattributableshare ofcash dividends orprofit distributionsdeclared bytheinvestee.
13.3.2Along-termequity investment accounted for using theequitymethod
TheGroup accounts forinvestment in associates andjointventures using theequity method. An associate isan entity overwhich theGroup has significant influence andajoint venture isa joint arrangement whereby theparties that have joint control ofthearrangement have rights tothe net assets ofthe jointarrangement.
Under theequity method, where theinitial investmentcost of along-term equity investment exceeds theGroup's share ofthefair valueof theinvestee's identifiable net assets at thetimeof acquisition, noadjustmentis made tothe initial investment cost. Wheretheinitial investment cost is less than theGroup's share ofthe fairvalue oftheinvestee's identifiablenet assets at thetimeof acquisition, thedifference isrecognized in profit or lossfor theperiod, and thecost ofthelong- term equity investment isadjusted accordingly.
Under theequity method, theGroup recognizes its shareof theothercomprehensive incomeand net profit orloss oftheinvestee for theperiod as othercomprehensive incomeandinvestment incomeorloss respectively for theperiod, and thecarrying amount ofthelong-term equity investment isadjusted accordingly. The carrying amount ofthe investmentshall be reduced bythe portion ofany profit distributions orcash dividendsdeclared bytheinvestee that isdistributed to theinvesting enterprise. Theinvesting enterpriseshall adjust thecarrying amount ofthe long-term equity investment for otherchanges in owners' equity oftheinvestee (other
than net profits orlosses, other comprehensiveincomeand profit distribution), andincludethe corresponding adjustment incapital reserve. TheGroup recognizes its shareof theinvestee's net profit orloss based onthefair valueofthe investee's individually identifiableassets at the acquisition dateafter making appropriate adjustments.Where theaccounting policies and accountingperiod adopted bytheinvestee are different from thoseoftheinvesting enterprise, the investingenterprise shall adjustthefinancial statements of theinvesteetoconform to its own accountingpolicies and accounting period, and recognise othercomprehensiveincome and investment incomeorlosses based ontheadjusted financial statements. Unrealized profits or losses resulting from theGroup's transactions and assets invested or soldthat are not recognized as business transactions withits associates and joint ventures are recognized as investment income orloss to theextent that thoseattributable totheGroup's, equity interest are eliminated. However, unrealizedlosses resulting from theGroup's transactions with itsassociates andjoint ventures
which represent impairment lossesonthetransferred assets are not eliminated.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
13.Long-term equityinvestments -continued
13.3Subsequent measurement andrecognition ofprofit orloss -continued
13.3.2Along-termequity investment accounted for using theequitymethod - continued TheGroup discontinues recognizing itsshare of net lossesof theinvestee after thecarrying amount ofthelong-term equity investmenttogether with anylong-term interests that insubstance form part ofitsnet investmentin theinvestee are reduced tozero. Except that iftheGroup has incurred obligations to assume additional losses,a provisionis recognized according tothe obligation expected, and recorded inthe investment lossfor theperiod. Where net profits are subsequently madebythe investee, theGroup resumes recognizing itsshare of thoseprofits only after itsshare of theprofits exceeds the share oflosses previously not recognized.
13.4Disposalof long-termequity investments
On disposal ofalong-term equity investment,the difference between theproceeds actually received and receivable andthecarrying amount is recognized inprofit or lossfor theperiod. For long-term equity investments accounted forusing the equity method,ifthe remaining interest after disposal isstillaccounted for usingtheequity method, other comprehensive income previously recognised for usingtheequity method is accounted for onthesame basis as would have been required if theinvesteehad directly disposed of related assets orliabilities, and transferred to profit orloss fortheperiod onapro ratabasis; owners' equity recognised dueto changes in otherowners' equity oftheinvestee (other than net profit or loss,other comprehensive incomeandprofit distribution)is transferred toprofit orloss fortheperiod onapro ratabasis. For long-term equity investments accounted forusing the costmethod, if theremaining interest after disposal isstillaccounted for usingthecost method, other comprehensive income previously recognised for usingtheequity method or in accordance with thestandards fortherecognition and measurement offinancial instrumentsbefore obtaining thecontrol over theinvestee, isaccounted foronthe samebasis as would have been required iftheinvestee haddirectly disposed ofrelated assets orliabilities, andtransferred to profit orloss for theperiod onapro rata basis; changes in otherowners' equity in theinvestee's net assets recognised under theequity method (other than net profit orloss, othercomprehensive incomeand profit distribution)is transferred to profit or lossfor theperiod onapro rata basis.
14.Investmentproperties
Investment property is property held toearn rentals orfor capital appreciation or both. It includes aland use right that is leased out;a land useright held fortransfer uponcapital appreciation; and abuildingthat is leased out.
An investment property ismeasured initiallyat cost. Subsequent expenditures incurred forsuch investment property are included in thecost oftheinvestment property ifit isprobable that economicbenefits associated with aninvestment property willflow tothe Group and the subsequent expenditures can bemeasured reliably, othersubsequent expendituresare recognized
inprofit orloss inthe period in which theyare incurred.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
14.Investmentproperties -continued
TheGroup uses thecost model for subsequent measurement of investmentproperty, and adopts a depreciation oramortizationpolicy for theinvestment property which is consistent with that for buildings orland use rights.
When aninvestment property is sold, transferred, retired ordamaged, theGroup recognizesthe amount ofany proceeds ondisposalnet ofthecarrying amount and related taxesin profit orloss forthe period.
15.Fixed assets
15.1Recognition criteria for fixed assets
Fixedassets are tangibleassets that are held for usein theproduction orsupplyofgoods or services, forrental to others, or foradministrativepurposes, and have useful lives ofmore than oneaccounting year. Afixedasset is recognized only when itis probable that economicbenefits associated withthe asset will flowto theGroup and thecost oftheasset can bemeasured reliably. Fixedassets are initiallymeasured at cost. Upon being restructured into astock company, the fixedassets initially contributed bythestate-owned shareholders are recognized based onthe valuation amounts confirmed bythestate-owned assets administration department.
Subsequent expenditures incurred for thefixed asset are included inthecost ofthe fixed asset and ifitis probable that economic benefits associated with theasset will flowto theGroup and the subsequent expenditures can bemeasured reliably. Meanwhile thecarrying amount ofthe replaced part isderecognized. Othersubsequent expenditures are recognized in profit orloss in theperiod in which they are incurred.
15.2Depreciationof each category of fixed assets
Afixedasset is depreciated over its useful lifeusing thestraight-linemethod starting from the monthsubsequent tothe onein which it isready for intended use. Theuseful life, estimated net residual value rate and annual depreciation rate ofeach category of fixed assets are as follows:
|||||
|-|-|-|-|
|Category|Estimatedusefullives|Estimatedresidualvalue|Annualdepreciationrate|
|Portandterminalfacilities|5-50years|10%|1.8%-18%|
|Containeryardsandbuildings|5-40years|10%|2.25%-18%|
|Mechanicalequipment|5-15years|10%|6%-18%|
|Motorvehicles,cargoshipsandtugboats|5-20years|10%|4.5%-18%|
|Otherequipment|5years|10%|18%|

Estimated net residual value ofafixed asset is theestimated amount that theGroup would
currently obtain from disposal oftheasset, after deducting theestimated costs of disposal, ifthe
asset were already of theage and in thecondition expected at theendofits useful life.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
15.Fixed assets -continued
15.3Other explanations
If a fixed asset isupondisposal ornofuture economic benefits are expected tobe generated from itsuseor disposal, thefixed asset isderecognized. When a fixed asset is sold, transferred, retired ordamaged, theamount of any proceeds ondisposal oftheasset net ofthe carrying amount and related taxes is recognizedin profit or loss fortheperiod.
TheGroup reviews theuseful life and estimated net residual value ofafixedasset and the depreciation method applied at least onceat each financial year-end, and account for any change as achange inan accounting estimate.
16.Construction inprogress
Constructionin progress is measured at its actual costs. The actual costs include various construction expenditures during theconstruction period, borrowing costs capitalized before it is ready forintended useand other relevant costs. Construction inprogress is not depreciated. Constructionin progress is transferred toa fixedasset whenit is ready forintended use. 17.BorrowingCosts
Borrowing costs directly attributable to theacquisition,construction orproduction ofqualifying asset are capitalized when expenditures forsuch asset and borrowing costs are incurred and activities relating to theacquisition, construction orproduction oftheasset that are necessary to prepare theasset forits intended useorsale havecommenced. Capitalization of borrowing costs ceases when thequalifying asset being acquired, constructed orproduced becomes ready forits intended useor sale. Capitalization ofborrowing costs is suspended during periods in which the acquisition, construction orproduction ofaqualifying asset is interrupted abnormally and when theinterruption is fora continuous period of morethan 3months. Capitalizationis suspended untiltheacquisition, construction or production oftheasset is resumed. Other borrowing costs are recognizedas an expensein theperiod inwhich theyare incurred.
Wherefunds are borrowed undera specific-purpose borrowing, theamount of interest to be capitalized is theactual interest expense incurred onthat borrowing fortheperiod less any bank interest earned from depositing theborrowed funds before being used ontheasset orany investment incomeonthetemporary investment ofthosefunds. Wherefunds are borrowed under general-purpose borrowings, theGroup determines theamount ofinterest tobe capitalized on suchborrowings byapplying acapitalization rateto theweighted average oftheexcess of cumulativeexpenditures ontheasset overtheamounts of specific-purpose borrowings. The capitalizationrate is theweighted average oftheinterest rates applicable to thegeneral-purpose borrowings.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
17.BorrowingCosts - continued
During thecapitalization period, exchange differences related to aspecific-purpose borrowing denominated in foreign currency are all capitalized.Exchange differences in connection with general-purpose borrowings are recognized inprofit orloss in theperiod inwhich they are incurred.
18.Intangibleassets
Intangibleassets include land userights, sea area use rights and computersoftware.
An intangible asset is measured initiallyat cost.Upon being restructured into astock company, theintangible assets initialcontributed bythestate-owned shareholders are recognized based on thevaluation amounts confirmed bythestate-owned assets administration department. When an intangible asset with afiniteuseful lifeis availablefor use, its original cost is amortizedover its estimated useful life.
|||||
|-|-|-|-|
|Category|Amortizationmethod|Estimatedusefullives(year)|Residualvalue(%)|
|Landuserights|Straight-linemethod|20-50|-|
|Computersoftware|Straight-linemethod|5|-|
|Seaareauserights|Straight-linemethod|5-50|-|
|Coastallineuserights|Straight-linemethod|41.9-44.3|-|

 For anintangible asset with a finiteuseful life, theGroup reviews theuseful life andamortization method at theendof theperiod, and makes adjustments when necessary.
19.Impairmentof long-term assets
TheGroup assesses at thebalance sheet datewhether there is anyindication that thelong-term equity investments,investment properties measured at costmethod, construction in progress, fixedassets andintangible assets with afiniteuseful lifemay be impaired. If there is any indication that suchassets maybe impaired, recoverable amountsare estimated forsuch assets. Intangibleassets with indefinite useful lifeand intangibleassets notyet availablefor useare tested for impairment annually, irrespectiveof whether there isany indication that the assets may beimpaired.
Recoverable amount isestimated onindividual basis. If itis not practical toestimate the recoverableamount ofan individualasset, therecoverable amount oftheasset group towhich the asset belongs will beestimated.The recoverable amount ofan asset is thehigherof itsfair value less costs ofdisposal and thepresent value ofthefuture cash flows expected to be derived from
theasset.
If the recoverable amount ofan asset oran asset group is less thanitscarrying amount, thedeficit
is accounted foras an impairment lossand is recognized in profit or loss.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
19.Impairmentof long-term assets - continued
Goodwillis tested for impairment at least at the end ofeach year. For thepurposeof impairment testing, goodwill is considered together withthe related assets groups, i.e., goodwill isreasonably allocated tothe related assets groups or each ofassets groups expected to benefit from the synergies of thecombination. In testing an assets group with goodwill for impairment, an impairment lossis recognized iftherecoverableamount of theassets groupor sets ofassets groups (including goodwill)is less than itscarrying amount. The impairment lossis firstly allocated toreduce thecarrying amount ofany goodwillallocated to such assets group orsets of assets groups, and then to theotherassets of thegroup pro-rata basis onthebasis ofthecarrying amount ofeach asset (other than goodwill)inthegroup.
Once theimpairment loss ofabove-mentioned asset is recognized, itshall not bereversed in any subsequent period.
20.Long-term prepaidexpenses
Long-term prepaid expenses represent expenses incurred that shouldbe borneand amortized over thecurrent and subsequent periods (together ofmore than one year). Long-term prepaid expenses are amortized usingthestraight-line method overthe expected periods in which benefits are derived.
21.Employee benefits
21.1Theaccounting treatment of short-termemployee benefits
Actually occurred short-term employee benefits are recognised as liabilities, with a corresponding charge tothe profit orlossfor theperiod orin thecosts ofrelevant assets inthe accounting period inwhich employees provideservices to theGroup. Staffwelfare expenses incurred bytheGroup are recognised inprofit orloss fortheperiod orthe costs ofrelevant assets based ontheactually occurred amountswhen itactually occurred. Non-monetary staffwelfare expenses are measured at fair value.
Payment madebytheGroup ofsocial security contributions foremployees such as premiumsor contributionsonmedical insurance, work injury insurance and maternity insurance, etc. and payments ofhousingfunds, as well as union running costs and employee education costs provided inaccordance with relevant requirements, are calculated according toprescribed bases and percentages in determiningthe amount ofemployee benefits and recognised as relevant liabilities, witha corresponding charge to theprofit orloss fortheperiod orthe costs ofrelevant assets in the accountingperiod in which employees provideservices.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
21、Employee benefits -continued
21.2Theaccounting treatment of post-employment benefits
Allthe post-employment benefits are defined contribution plans.
Thecontribution payable tothedefined contribution plan isrecognised as liabilities, with a corresponding charge tothe profit orlossfor theperiod orinthecosts ofrelevant assets inthe accountingperiod in which employees provideservices to theGroup.
21.3Theaccounting treatment of termination benefits
When theGroup provides termination benefits to employees, employee benefit liabilities are recognised for terminationbenefits, with acorresponding charge to theprofit orloss for the period at the earlier of: (1)when theGroup cannot unilaterally withdraw theofferof termination benefitsbecause ofthetermination plan or acurtailment proposal; and(2)when theGroup recognizescosts or expenses related torestructuring that involves thepayment of termination benefits.
22.Provisions
Provisionsare recognised when theGroup has apresent obligation related with contingencies, it is probable that theGroup will berequired tosettlethat obligation causing an outflowof economic benefits,and areliable estimatecan bemade oftheamount of theobligation.
Theamount recognised as aprovision isthebest estimateoftheconsideration required to settle thepresent obligation at balance sheet date, taking intoaccount the risks,uncertainties and time valueof money surrounding theobligation.When aprovision is measured usingthe cashflows estimated to settlethepresent obligation, its carrying amount isthe present value ofthose cash flows where theeffect ofthe timevalue ofmoney ismaterial.
When someorall oftheeconomic benefits required to settlea provision are expected tobe recovered from athird party,a receivable isrecognised as anasset if itis virtually certain that reimbursement willbe received and the amount ofthereceivable shouldnot exceed thecarrying amount ofprovisions.
23.Revenue
23.1Revenuefromrendering of services
TheGroup provides load and unload services, tugboat and trailer services, logistics agency and otherrelated harbor services tocustomers.Revenuefrom rendering ofservices is recognized when (1) theamount ofrevenue can bemeasured reliably; (2)it isprobable that theassociated
economicbenefits will flowto theenterprise; and (3) theassociated costs incurred orto be
incurred can bemeasured reliably.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
23.Revenue
23.2Rental income -continued
Theoperating lease incomeofinvestment property should berecognizedin thelease term at the price stated in contractor agreements usingthestraight-linemethod.
23.3Interest income
Interest incomeis calculated based onthelength oftimeforwhich theGroup's cash is used by others and theapplicable interest rate.
24.Government grants
Government grants are transfer ofmonetary assets ornon-monetary assets from the government to theGroup at noconsideration. Agovernment grant measured at anominal amount is recognized immediately inprofit orlossfor theperiod.
Agovernment grant is recognized onlywhen theGroup can comply with theconditions attached tothe grant and theGroup will receive thegrant. If agovernment grant is inthe form ofa transfer ofamonetary asset, itis measured at theamount received orreceivable.
24.1Theaccounting treatment of government grants related to assets
Agovernment grant, suchas special funds formodern logistics project and special funds for energy-saving and emissionreduction oftransportation, related toan asset is recognized as deferred income, and evenly amortized to profit orloss over theuseful lifeofthe related asset. 24.2Theaccounting treatment of government grants related to income
Agovernment grant relating toincome, if used to compensate therelated expenses orlosses to be incurred in subsequent periods, suchas financial support funds ofbusiness tax converted to VAT and reward forenergy saving, isdetermined as deferred incomeandrecognised in profit or loss overthe periods in which therelated costs are recognized; ifusedto compensate therelated expenses orlosses already incurred, is recognised immediately inprofit orloss forthe period. 25.Deferredtax assets/ deferredtax liabilities
Theincome tax expenses includecurrent income tax anddeferred incometax.
25.1Currentincome tax
At thebalance sheet date, current income tax liabilities (or assets)for thecurrent and priorperiods
are measured at theamount expected tobe paid (orrecovered) according to therequirements of
tax laws.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
25.Deferredtax assets/ deferredtax liabilities- continued
25.2Deferred taxassetsanddeferred taxliabilities
For temporary differences between thecarrying amounts of certain assets orliabilities and their tax base, orbetween thenil carrying amount ofthoseitems that are not recognized as assets or liabilities and their tax base that canbedetermined according to tax laws, deferred tax assets and liabilities are recognizedusing the balance sheet liabilitymethod.
Deferred tax liabilities are generallyrecognized for all taxabletemporary differences. Deferred tax assets for deductibletemporary differences are recognized to theextentthat it is probablethat taxable profits will be available against which the deductible temporary differences can be utilized. However, for temporary differences associated with theinitial recognitionof goodwilland the initialrecognition of an asset or liability arising from atransaction (not abusiness combination) that affects neither theaccounting profit nortaxableprofits (or deductiblelosses)at the timeof transaction,nodeferred tax asset orliabilityis recognized.
For deductiblelosses andtax credits that can becarried forward, deferred tax assets are recognizedto theextentthat it is probable that futuretaxableprofits will beavailable against which thedeductible losses and taxcredits can beutilized.
Deferred tax liabilities are recognized for taxabletemporary differences associated with investmentsin subsidiaries and associates, and interests in jointventures, except where theGroup is ableto control thetimingof thereversal ofthe temporary difference and it isprobable that the temporary difference will notreverse in theforeseeable future. Deferred tax assets arising from deductibletemporary differences associated with suchinvestments and interests are only recognizedto theextentthat it is probable that there willbe taxableprofits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. At thebalance sheet date, deferred tax assets and liabilities aremeasured at thetax rates applicable inthe period in which theasset is realized ortheliability issettled according to tax laws.
Current and deferred tax expenses orincomeare recognized in profit orloss for theperiod, except when they arisefrom transactions orevents that are directly recognized in othercomprehensive incomeorin equity, inwhich case they are recognized in othercomprehensive incomeorin equity, and when theyarise from business combinations, in which case they adjust thecarrying amount ofgoodwill.
At thebalance sheet date, the carrying amount ofdeferred tax assets is reviewed and reduced if it is nolonger probable that sufficient taxableprofits will beavailable inthefuture to allowthe benefitof deferred tax assets to beutilized. Any such reduction inamount is reversed when it becomes probable that sufficient taxableprofits willbe available.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
25.Deferredtax assets/ deferredtax liabilities- continued
25.3Offset ofincome tax
When theGroup has alegal right to settleonanet basis and intends eitherto settleona net basis orto realizethe assets and settletheliabilities simultaneously, current tax assets andcurrent tax liabilities are offset and presented ona net basis.
When theGroup has alegal right to settlecurrent tax assets and liabilities onanet basis, and deferred tax assets and deferred taxliabilities relate to incometaxes levied bythesame taxation authority oneitherthe sametaxableentityor different taxableentitieswhich intend either tosettle current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously, ineach future period inwhich significant amounts ofdeferred tax assets orliabilities are expected tobe reversed, deferred tax assets and deferred tax liabilities are offset and presented onanet basis.
26.Leases
Leases are classified as finance leases whenever theterms ofthelease transfer substantiallyall the risks andrewards ofownership tothe lessee. All other leases are classified as operating leases. 26.1Theaccounting treatment of operating leases
26.1.1TheGroup as lessee under operating leases
Operating lease payments are recognizedona straight-linebasis over theterm ofthe relevant lease, and are either included in thecost ofrelated asset orcharged toprofit or lossfor theperiod. Initial direct costs incurred are charged to profit orloss fortheperiod. Contingent rents are charged to profit or lossintheperiod inwhich they are actually incurred.
26.1.2TheGroup as lessor under operating leases
Rental incomefrom operating leases isrecognized in profit or lossona straight-line basis overthe term oftherelevant lease. Initial direct costs with morethan an insignificant amount are capitalized when incurred, and are recognizedin profit or loss onthesamebasis as rental income overthe lease term. Otherinitial direct costs with an insignificant amount are charged in profit or lossintheperiod in which they are incurred. Contingent rents are charged toprofit or loss in the period inwhich they actually arise.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
27.Safety Production Cost
According to theAdministrative Rules onProvision andUseof EnterpriseSafety ProductionCost jointlyissued bytheMinistryof Financeand theStateAdministration ofWorkSafety on 14 February 2012(filed as Cai Qi[2012]No.16), safety production cost set asidebytheGroup is directly included inthe costof relevant products or recognized in profit orloss forthe period, as well as thespecial reserve. Whensafety production costset asideis utilized, ifthecosts incurred can be categorized as expenditure, the costs incurred should be charged against the special reserve. If the costs set asideare used tobuild upfixed assets, the costs should becharged to construction inprogress, and reclassified to fixed assets when thesafety projects are ready forintended use. Meantime, expenditures in buildingupfixed assets are directly charged against thespecial reserve withthe accumulated depreciation recognized at thesameamount. Depreciation will notbe made inthe futureperiod onsuch fixed assets.
28.Critical judgments in applyingaccounting policies andkey assumptions and
uncertainties in accountingestimates
In theapplication ofaccounting policiesas set out inNote (III), theCompany isrequired to make judgments, estimates andassumptionsabout thecarrying amounts ofitems in thefinancial statements that cannot be measured accurately, dueto theinternal uncertainty of theoperating activities. These judgments, estimates and assumptions are based onhistorical experiences ofthe Company's management as well as other factors that are considered to berelevant. Actual results may differ from these estimates.
TheCompany regularly reviews thejudgments, estimates andassumptions onagoing concern basis. Changes in accounting estimates which only affect the current period should be recognized incurrent period; changes which not only affect thecurrent but thefutureperiods should be recognizedin current and futureperiods. At thebalance sheet date, key assumptionsand uncertainties that arelikely tolead tosignificant adjustmentsto thebookvalues ofassets and liabilities in thefuture are:
Goodwillimpairment
For thepurposeof impairment testing, thepresent value oftheexpected futurecash flows of the assets group or portfolio includinggoodwill shall becalculated, and such expected futurecash flows shall beestimated. Meantime, apre-tax rate shall be determined that shouldreflect thetime valueof money onthecurrent market and thespecific asset risks.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(III) THECOMPANY'S SIGNIFICANT ACCOUNTING POLICIESANDACCOUNTING ESTIMATES- continued
28.Critical judgments in applyingaccounting policies andkey assumptions and
uncertainties in accountingestimates -continued
Recognition of deferred tax
TheGroup calculates and makes provisionfor deferred income tax liabilities according tothe profit distributionplan of subsidiaries, associates and thejointventures subject to therelated law. For retained earnings which are not allocated bytheinvestmentcompany, sincethe profits willbe usedto invest thecompany's daily operation and future development, nodeferred incometax liabilities are recognized.If theactually distributed profits in thefutureare more orless thanthose expected, corresponding deferred tax liabilities willbe recognized orreversed at the earlier of profits distribution date andthedeclaration date, in theprofit and loss ofthecurrent period. Deferred tax assets are recognized based onthedeductibletemporary difference andthe corresponding tax rate, to theextent that it has become probable that future taxableprofit will be available forthe deductibletemporary difference. If in thefuturethe actual taxableincomedoes notcoincide with theamount currently expected, the deferred tax assets resulting will be recognizedor reversed intheperiod when actually incurred, in profit orloss.
(IV) TAXES
1.Major taxes and taxrates
||||
|-|-|-|
|Taxes|Taxbasis|Taxrate|
|Enterpriseincometax|Taxableincome|25%|
|Value-addedTax("VAT")|Loadandunloadincome,tugboatincome,trailerincome,warehousingincomeandagencyincome|6%|
||Taxableincomefromvehiclemaintenanceandutilitiessuppliesonshipsinshore|13%and17%|
||Salesrevenueofwastematerialsandleaseincomefromtangiblemovableproperty|3%|
||Taxableincomefromleasesofimmovablepropertyandlabordispatching|5%and6%(Note2)|
|Businesstax|Taxableincomefromleasesofimmovablepropertyandlabordispatching|5%(Note2)|
|Citymaintenanceandconstructiontax|VATandBusinesstaxpaid|5%and7%(Note1)|
|Educationsurtax|VATandBusinesstaxpaid|3%|
|Regionaleducationsurcharges|VATandBusinesstaxpaid|2%|

 Entitiesusing different enterpriseincome tax rate:
|||
|-|-|
|Nameofentity|Enterpriseincometaxrate|
|ChiwanWharfHoldings(HongKong)Limited|16.50%|
|ChiwanShipping(HongKong)Limited|16.50%|
|HinwinDevelopmentLimited|16.50%|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(IV) TAXES- continued
1.Major taxes and taxrates -continued
Note 1:The subsidiaries set upin Shenzhenare subject to an city maintenance and construction tax rateof7%, and thoseset upin Dongguanare subject to an city maintenance and construction tax rateof5%.
Note2: Pursuant to theNoticeof theMinistryof FinanceandtheStateAdministrationof Taxation ("SAT")on Full Launch of thePilotScheme onLevying Value-added Taxin Placeof Business Tax(filed as CaiShui[2016]No. 36), a fullimplementation of replacing business tax with VAT has been launched. Therefore, the Group is subject toVAT at5% and6% respectively forrental incomefrom immovableproperty and incomefrom labor dispatching since1May 2016.
Pursuant to theInterimMeasures onManagement of VAT Collection onImmovable Property Leases Provided by Taxpayers released bySAT(filed as the noticeofSAT2016 No.16), theGroup, are entitled to VAT tax rate at5%based onsimpletaxmethod for immovableproperty leasing since1May 2016.
2.Tax preference
On 21February 2012,Machong Branch ofNational TaxationBureau in Dongguan Cityapproved that Dongguan Chiwan Wharf Co., Ltd("DGW"), a subsidiary oftheGroup, was subject totax preference of"3-year exemptionfollowed by3-year half reduction" commencing from 2010.The tax preference isexpired in2016,hence, DGW has calculated itsincometax at arateof25% (2015:12.5%).
On 8July 2014,Machong Branch ofNational TaxationBureau in DongguanCity approved that Dongguan Chiwan Terminal Co., Ltd ("DGT"), asubsidiary oftheGroup, was subject to tax preference of"3-year exemptionfollowed by3-year half reduction" commencing from 2014. DGT is exempted from income tax in 2016(2015:exempted from enterprise incometax). According to Doc.[2013]No.3 issued byShekou Local Taxation Bureau In Shenzhen, theprofits derived from berth13A# ofShenzhen Chiwan Harbour ContainerCo., Ltd ("CHCC"), was subject to taxpreference of"3-year exemptionfollowed by3-yearhalf reduction" commencing from 2012.2016is thefifth profit-making yearof berth13A#, hence, thetaxrateof12.5%was adopted to calculate itsenterprise incometax. (2015:12.5%).
According to thejointverification byScience and Technology Innovation Commission of Shenzhen Municipality, Finance Commissionof Shenzhen Municipality, Shenzhen Provincial Office, SAT and Shenzhen Local Taxation Bureau, Chiwan Container Terminal Co., Ltd ("CCT"), asubsidiary of theGroup, is ahigh-tech enterprise, and was subject to tax preference of 3-year enterpriseincometax rate of15%commencing from 2014.Hence, CCT has calculated its income tax at arate of15%in2016(2015:15%).
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(IV) TAXES- continued
2.Tax preference -continued
According to theNotice onTaxableServices Subject to "VAT" TaxRateof Zero andExemption issued bytheMinistryof Finance andStateAdministration ofTaxation (filed as CaiShui[2011] No.131), and approvals released byShekou National Taxation Bureau inShenzhen (filed as Shen Guo ShuiSheJian MianBei[2015]No.0419,[2015]No.0575and[2015]No.0755 respectively), CCT,CHCC and Shenzhen Chiwan International Freight Agency Co.,Ltd, thesubsidiaries ofthe Group, are exempted from VAT when providing logistics support service to overseas enterprises except forwarehousing service.
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS
1.Cash andbankbalances
Unit:RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Cash:|||
|RMB|20,664.46|24,361.90|
|USD|492.53|461.05|
|HKD|7,786.85|3,824.97|
|Subtotal|28,943.84|28,647.92|
|Bankdeposit:|||
|RMB|225,166,179.45|409,906,378.32|
|USD|175,236,570.78|164,610,997.05|
|HKD|25,531,313.32|108,138,907.80|
|Subtotal|425,934,063.55|682,656,283.17|
|Othercashandbankbalances(Note)|||
|RMB|73,695.48|453,192.57|
|USD|-|-|
|HKD|-|-|
|Subtotal|73,695.48|453,192.57|
|Total|426,036,702.87|683,138,123.66|
|Including:Thetotalamountoffundsdepositedinoverseas|11,778,425.97|88,863,245.66|

 Note: Other cash and bank balances is mainly theamount deposited inthecredit card account of Industrial and Commerical Bank ofChinaand securities settlement account ofChinaMerchants Securities Co., Ltd.
2.Notes receivable
Unit:RMB
||||
|-|-|-|
|Category|Closingbalance|Openingbalance|
|Bankacceptancebills|500,000.00|3,327,000.00|

Note: There is nonotes receivable pledged, endorsed or discounted at theyear end.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 3.Accounts receivable
(1)Disclosure ofaccounts receivable bycategories
Unit:RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item|Closingbalance|||||Openingbalance|||||
||Carryingamount||Baddebtprovision||Bookvalue|Carryingamount||Baddebtprovision||Bookvalue|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Accountsreceivablethatareindividuallysignificantandforwhichbaddebtprovisionhasbeenassessedindividually|-|-|-|-|-|-|-|-|-|-|
|Accountsreceivableforwhichbaddebtprovisionhasbeenassessedbycreditriskportfolios|||||||||||
|Portfolio1|4,527,585.51|2.54|-|-|4,527,585.51|12,418,434.10|6.56|-|-|12,418,434.10|
|Portfolio2|169,922,044.73|95.41|515,133.61|0.30|169,406,911.12|176,789,459.38|93.44|191,328.62|0.11|176,598,130.76|
|Subtotalofportfolios|174,449,630.24|97.95|515,133.61|0.29|173,934,496.63|189,207,893.48|100.00|191,328.62|0.10|189,016,564.86|
|Accountsreceivablethatarenotindividuallysignificantbutforwhichbaddebtprovisionhasbeenassessedindividually|3,647,046.03|2.05|3,647,046.03|100.00|-|-|-|-|-|-|
|Total|178,096,676.27|100.00|4,162,179.64|2.34|173,934,496.63|189,207,893.48|100.00|191,328.62|0.10|189,016,564.86|

 Accounts receivable portfolios for which bad debt provisionhas been assessed using theaging analysis approach:
Unit:RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Aging|Closingbalance||||Openingbalance||||
||Carryingamount|Baddebtprovision|Proportion(%)|Bookvalue|Carryingamount|Baddebtprovision|Proportion(%)|Bookvalue|
|Within1year|169,810,253.50|477,141.52|0.28|169,333,111.98|176,739,529.67|142,974.91|0.08|176,596,554.76|
|Morethan1yearbutnotexceeding2years|91,873.93|18,374.79|20.00|73,499.14|1,970.00|394.00|20.00|1,576.00|
|Morethan2yearsbutnotexceeding3years|600.00|300.00|50.00|300.00|-|-|-|-|
|Morethan3years|19,317.30|19,317.30|100.00|-|47,959.71|47,959.71|100.00|-|
|Total|169,922,044.73|515,133.61|0.30|169,406,911.12|176,789,459.38|191,328.62|0.11|176,598,130.76|

 (2)Bad debt provisionincrease,reversal and written-off
Unit:RMB
|||||||
|-|-|-|-|-|-|
|Item|Openingbalance|Increase|Decrease||Closingbalance|
||||Reversal|Write-off||
|Accountsreceivable|191,328.62|3,973,743.43|2,892.41|-|4,162,179.64|

 (3)There are noaccounts receivables that have been written offduring theyear.
(4)Top five balances ofaccounts receivable classified bydebtor
Unit: RMB
||||||
|-|-|-|-|-|
|Nameofcustomer|RelationshipwiththeCompany|Amount|Proportionoftheamounttothetotalaccountsreceivable(%)|Baddebtprovision|
|CustomerA|Customer|64,583,710.55|36.26|88,609.73|
|CustomerB|Customer|19,160,751.38|10.76|15.25|
|CustomerC|Customer|7,579,528.90|4.26|-|
|CustomerD|Customer|6,332,134.38|3.56|-|
|CustomerE|Customer|4,171,471.16|2.34|-|
|Total||101,827,596.37|57.18|88,624.98|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 4.Prepayments
(1)Prepayments presented byaging
Unit: RMB
||||||
|-|-|-|-|-|
|Aging|Closingbalance||Openingbalance||
||Amount|Proportion(%)|Amount|Proportion(%)|
|Within1year|2,464,758.53|93.37|2,503,775.41|93.47|
|Morethan1yearbutnotexceeding2years|-|-|175,000.00|6.53|
|Morethan2yearsbutnotexceeding3years|175,000.00|6.63|-|-|
|Total|2,639,758.53|100.00|2,678,775.41|100.00|

 (2)Top five balances ofprepayments classified byentities
Unit: RMB
|||||
|-|-|-|-|
|Entities|RelationshipwiththeCompany|Closingbalance|Proportionoftheclosingbalancetothetotalprepayments(%)|
|ThePeople'sInsuranceCompany(Group)ofChinaLimited.|Supplier|921,724.05|34.92|
|ChinaLifeInsuranceCo.,LtdShenzhenBranch|Supplier|496,400.00|18.80|
|ThePeople'sPropertyInsuranceCompany(Group)ofChinaLimited,ShenzhenBranch|Supplier|461,901.61|17.50|
|ChinaContinentPropertyInsuranceCo.,Ltd.|Supplier|216,780.91|8.21|
|GuangdongJing'anSafetyEvaluation&ConsultingCo.,Ltd.|Supplier|175,000.00|6.63|
|Total||2,271,806.57|86.06|

 (3) TheGroup has nosignificant prepayment aging over oneyear.
5.Interest receivable
(1) Interest receivable
Unit: RMB
||||
|-|-|-|
|Category|Closingbalance|Openingbalance|
|Fixedtermdeposit|-|72,773.05|

 (2) TheGroup has nosignificant overdue interest.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 6.Dividendsreceivable
(1) Dividends receivable
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Openingbalance|Increase|Decrease|Closingbalance|Impairmentappearedornot|
|ChinaOverseasHarborAffairs(Laizhou)Co.,Ltd.("COHA(Laizhou)")|-|36,132,189.03|36,132,189.03|-|No|
|MediaPortInvestmentsLimited|-|34,085,893.00|34,085,893.00|-|No|
|ChinaOceanShippingAgency(Shenzhen)Co.,Ltd("OceanShippingAgency")|-|5,892,187.85|5,892,187.85|-|No|
|JiangSuNinghuExpresswayCo.,Ltd|-|400,000.00|400,000.00|-|No|
|Total|-|76,510,269.88|76,510,269.88|-||

(2) TheGroup has nodividends receivable aging morethan oneyear.
7.Otherreceivables
(1)Disclosure ofother receivables bycategories:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Closingbalance|||||Openingbalance|||||
||Carryingamount||Baddebtprovision||Bookvalue|Carryingamount||Baddebtprovision||Bookvalue|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Otherreceivablesthatareindividuallysignificantandforwhichbaddebtprovisionhasbeenassessedindividually||||||-|-|-|-|-|
|Otherreceivablesforwhichbaddebtprovisionhasbeenassessedbycreditriskportfolios|||||||||||
|Portfolio1|9,736,887.93|34.85|100,000.00|1.03|9,636,887.93|12,390,252.83|80.02|100,000.00|0.81|12,290,252.83|
|Portfolio2|18,205,610.78|65.15|1,194,629.70|6.56|17,010,981.08|3,094,402.45|19.98|475,906.84|15.38|2,618,495.61|
|Subtotalofportfolios|27,942,498.71|100.00|1,294,629.70|4.63|26,647,869.01|15,484,655.28|100.00|575,906.84|3.72|14,908,748.44|
|Otherreceivablesthatarenotindividuallysignificantbutforwhichbaddebtprovisionhasbeenassessedindividually|-|-|-|-|-|-|-|-|-|-|
|Total|27,942,498.71|100.00|1,294,629.70|4.63|26,647,869.01|15,484,655.28|100.00|575,906.84|3.72|14,908,748.44|

 Otherreceivables portfolios forwhich bad debt provisionhas beenassessed using theaging analysis
Unit:RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Aging|Closingbalance||||Openingbalance||||
||Carryingamount|Baddebtprovision|Proportion(%)|Bookvalue|Carryingamount|Baddebtprovision|Proportion(%)|Bookvalue|
|Within1year|17,704,281.50|723,624.26|4.09|16,980,657.24|2,622,437.97|10,265.61|0.39|2,612,172.36|
|Morethan1yearbutnotexceeding2years|37,904.80|7,580.96|20.00|30,323.84|2,600.00|520.00|20.00|2,080.00|
|Morethan2yearsbutnotexceeding3years|-|-|-|-|8,486.50|4,243.25|50.00|4,243.25|
|Morethan3years|463,424.48|463,424.48|100.00|-|460,877.98|460,877.98|100.00|-|
|Total|18,205,610.78|1,194,629.70|6.56|17,010,981.08|3,094,402.45|475,906.84|15.38|2,618,495.61|

 (2)Increase, reverse and write-off ofbad debt provision
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Openingbalance|Increase|Decrease||Translateforeigncurrencystatements|Closingbalance|
|||||Reversal|Write-off|||
|Otherrece|ivable|575,906.84|731,205.22|12,482.36|-|-|1,294,629.70|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 7.Otherreceivables -continued
(3)Other receivable has not been written off during theyear.
(4)Disclosure ofother receivables bynature
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Temporarypayments|7,216,846.26|4,789,080.04|
|Deposits|4,021,619.49|4,469,460.16|
|Others|16,704,032.96|6,226,115.08|
|Total|27,942,498.71|15,484,655.28|

 (5)Top five balances ofother receivables classified bycreditors
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Nameofcompany|Natureofthefund|Amount|Aging|Proportionoftheamounttothetotalaccountsreceivable(%)|Baddebtprovision|
|DongguanFinance|Amounttobeprepaid|14,469,500.00|Withinoneyear|51.78|723,475.00|
|ChinaMerchantsBondedLogisticsCo.,Ltd("CMBL")|Temporarypaymentsfromrelatedparties|2,437,813.73|Withinoneyear|8.73|-|
|FinanceDepartmentofMinistryofTransport|Depositsandguarantee|1,600,000.00|morethan3years|5.73|-|
|ShenzhenMawanPortCo.,Ltd.("SMP")|Temporarypaymentsfromrelatedparties|1,366,290.52|Withinoneyear|4.89|-|
|ChinaNanshanDevelopment(Group)Incorporation("NanshanGroup")|Temporarypaymentsfromrelatedparties|1,054,300.09|Morethan2yearbutnotexceeding3yearsandmorethan3years|3.77|-|
|Total||20,927,904.34||74.90|723,475.00|

 8.Inventories
(1)Categories ofinventories
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|Item|2016|||2015|||
||Carryingamount|Provisionfordeclineinvalueofinventories|Bookvalue|Carryingamount|Provisionfordeclineinvalueofinventories|Bookvalue|
|Spareparts|15,138,488.70|972,744.93|14,165,743.77|17,569,310.18|972,744.93|16,596,565.25|
|Fuel|605,666.32|-|605,666.32|703,742.41|-|703,742.41|
|Total|15,744,155.02|972,744.93|14,771,410.09|18,273,052.59|972,744.93|17,300,307.66|

 (2)Provision fordecline invalue ofinventories
Unit:RMB
|||||||
|-|-|-|-|-|-|
|Item|Openingbalance|Increase|Decrease||Closingbalance|
||||Reversal|Write-off||
|Spareparts|972,744.93|-|-|-|972,744.93|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued9、Other current assets
Unit:RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Added-valuetaxtobecertifiedanddeducted|16,832,212.36|12,889,208.71|

 10.Available-for-salefinancialassets
(1)Available-for-sale financial assets
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|Item|Closingbalance|||Openingbalance|||
||Carryingamount|Provisionforimpairment|Bookvalue|Carryingamount|Provisionforimpairment|Bookvalue|
|Available-for-saleequityinstruments|25,587,500.00|3,128,300.00|22,459,200.00|25,787,500.00|3,128,300.00|22,659,200.00|
|Measuredatfairvalue|8,550,000.00|-|8,550,000.00|8,750,000.00|-|8,750,000.00|
|Measuredatcost|17,037,500.00|3,128,300.00|13,909,200.00|17,037,500.00|3,128,300.00|13,909,200.00|
|Total|25,587,500.00|3,128,300.00|22,459,200.00|25,787,500.00|3,128,300.00|22,659,200.00|

 (2)Available-for-sale financial assets measured at fair value at theend of theyear
Unit:RMB
|||
|-|-|
|Classificationofavailable-for-salefinancialassets|Available-for-saleequityinstruments|
|Costofequityinstruments|1,120,000.00|
|Fairvalue|8,550,000.00|
|Accumulatedamountofchangesinfairvalueincludedintheothercomprehensiveincome|7,430,000.00|
|Provisionamountforimpairment|-|

 Note: Theavailable-for-sale financial assets held bythe Companyrepresent thecirculating shares ofJiang Su Ninghu Expressway Co.,Ltd. at theend ofthe year.
(3)Available-for-sale financial assets measured at cost at theend oftheyear
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Investees|Carryingamount||||Provisionforimpairment||||Proportionofownershipinterestsintheinvestee(%)|Cashdividendsfortheperiod|
||Openingbalance|Increase|Decrease|Closingbalance|Openingbalance|Increase|Decrease|Closingbalance|||
|ShenzhenPetro-chemicalIndustry(Group)Co.,Ltd|3,500,000.00|-|-|3,500,000.00|3,117,800.00|-|-|3,117,800.00|0.26|-|
|GuangdongGuangJianGroupCo.,Ltd|27,500.00|-|-|27,500.00|10,500.00|-|-|10,500.00|0.02|-|
|OceanShippingAgency|13,510,000.00|-|-|13,510,000.00|-|-|-|-|15.00|5,892,187.85|
|Total|17,037,500.00|-|-|17,037,500.00|3,128,300.00|-|-|3,128,300.00||5,892,187.85|

 Note: Theavailable-for-sale financial assets measured at cost are equityinvestments of Shenzhen Petro-chemical Industry (Group) Co., Ltd, Guangdong Guang Jian Group Co.,Ltd and Ocean Shipping Agency. Noneof thestocks ofabove-mentioned companies are traded in
market or fairvalue could bemeasured reliably, hence,theGroup measures theseequity
investmentsunder cost method.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 10.Available-for-salefinancialassets - continued
(4)Movements ofavailable-for-salefinancial assets inthe reporting period
Unit: RMB
|||
|-|-|
|Category|Available-for-saleequityinstruments|
|Provisionamountforimpairmentatthebeginningoftheyear|3,128,300.00|
|Increaseinthecurrentyear|-|
|Decreaseinthecurrentyear|-|
|Provisionamountforimpairmentattheendoftheyear|3,128,300.00|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued
11.Long-term equityinvestments
Unit:RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Accountingmethod|Investmentcost|Openingbalance|Changes||||||||Closingbalance|Closingvalueofprovisionforimpairment|
|||||Increase|Decrease|Investmentprofitorlossunderequitymethod|Reconcilingitemsfromothercomprehensiveincome|Otherequitymovements|Cashdividendsorprofitsannouncedofissuance|Provisionforimpairment|Others|||
|I.Jointventures||||||||||||||
|COHA(Laizhou)(Note1)|Equitymethod|749,655,300.00|770,930,325.06|-|-|60,183,170.19|-|-|36,132,189.03|-|-|794,981,306.22|-|
|II.Associates||||||||||||||
|ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd|Equitymethod|1,875,000.00|12,833,857.95|-|-|1,761,382.97|-|-|-|-|-|14,595,240.92|-|
|CMBL|Equitymethod|280,000,000.00|326,663,063.66|-|-|11,353,161.00|-|1,915,642.10|-|-|-|339,931,866.76|-|
|MediaPortInvestmentsLimited("MPIL")(Note2)|Equitymethod|139,932.00|336,597,728.49|-|-|40,893,973.41|-|-|36,572,459.27|-|-|340,919,242.63|-|
|Subtotal||282,014,932.00|676,094,650.10|-|-|54,008,517.38|-|1,915,642.10|36,572,459.27|-|-|695,446,350.31|-|
|Total||1,031,670,232.00|1,447,024,975.16|-|-|114,191,687.57|-|1,915,642.10|72,704,648.30|-|-|1,490,427,656.53|-|

 Note1: TheCompany holds40%equity interests inCOHA (Laizhou). According to itsarticles ofincorporation, significant matters such as operating decisions can bepassed only when jointlyapproved bydirectors of theCompany and theother ventures. Therefore, COHA(Laizhou)is deemed to beunder common control ofChiwan Wharf and theother shareholders; accordingly COHA(Laizhou) isaccounted foras ajoint venture.
Note2: On 30September 2002,ChinaMerchants Port Holdings Co.,Ltd (the"CMPH", formerly known as China Merchants Holdings (International)Co., Ltd.) and ShenzhenSouth Oil (Group) Co.,Ltd (the"SSOG")entered intoan agreement called "Agreement on Cooperation and Development of Mawan Port"(the "Development Agreement")to incorporate threejoint ventures, namely Shenzhen Mawan WharfCo.,Ltd. ("SMW"), SMPand ShenzhenMawan Terminals Co., Ltd.("SMT") (together referred toas "Mawan Companies"), to construct and operate theberth0#,5#,6#,7#and8#in Mawan Port.According to theDevelopment Agreement, CMPHand theGroup will jointly set upMPIL withequal percentage ofequity held respectively. MPIL then incorporates theabovementioned three jointventures together with SSOG, and MPIL has60%equity in each ofthethree joint ventures.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 12.Investmentproperties
(1)Investment properties measured undercost method
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Openingcarryingamount|Increase|Decrease|Closingcarryingamount|
|I.Totaloriginalcarryingamount|47,138,271.09|-|3,559,012.95|43,579,258.14|
|1.Buildings|17,054,506.09|-|2,107,378.79|14,947,127.30|
|2.Landuseright|30,083,765.00|-|1,451,634.16|28,632,130.84|
|II.Totalaccumulateddepreciationandamortization|20,390,475.71|913,968.27|1,372,099.61|19,932,344.37|
|1.Buildings|5,755,252.68|373,882.42|665,637.70|5,463,497.40|
|2.Landuseright|14,635,223.03|540,085.85|706,461.91|14,468,846.97|
|III.Totalnetbookvalueofinvestmentproperty|26,747,795.38|||23,646,913.77|
|1.Buildings|11,299,253.41|||9,483,629.90|
|2.Landuseright|15,448,541.97|||14,163,283.87|
|IV.Totalaccumulatedamountofprovisionforimpairmentlossesofinvestmentproperty|-|-|-|-|
|1.Buildings|-|-|-|-|
|2.Landuseright|-|-|-|-|
|V.Totalcarryingvalueofinvestmentproperty|26,747,795.38|||23,646,913.77|
|1.Buildings|11,299,253.41|||9,483,629.90|
|2.Landuseright|15,448,541.97|||14,163,283.87|

 Note: Depreciation and amortizationfor thecurrent period is RMB913,968.27.
(2)Investment properties without ownership certificates
As of 31December2016,theGroup has notobtained anyownership certificates ofinvestment properties. For buildings located withinthescope of Chiwan watershed with net bookvalue of RMB20,450,499.62 (original carrying amount: RMB40,030,725.05),theunderlying reasons and management's resolutions forobtaining certificates oftitleare set out inNote (V)15,and therest certificates oftitleare underthe process ofapplication.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued 13.Fixed assets
(1)Fixed assets
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Openingcarryingamount|Increase|Decrease|Closingcarryingamount|
|I.Totaloriginalcarryingamount|5,521,417,273.83|23,612,201.79|39,185,788.93|5,505,843,686.69|
|Including:Portandterminalfacilities|1,991,233,464.06|1,800,349.95|1,162,333.57|1,991,871,480.44|
|Containeryardsandbuildings|1,062,056,772.68|4,412,881.96|3,412,410.92|1,063,057,243.72|
|Mechanicalequipment|2,070,831,567.49|4,623,306.58|16,359,680.34|2,059,095,193.73|
|Motorvehicles,cargoshipsandtugboats|286,170,237.48|1,993,298.44|12,153,425.31|276,010,110.61|
|Otherequipment|111,125,232.12|10,782,364.86|6,097,938.79|115,809,658.19|
|II.Totalaccumulateddepreciation|2,250,816,840.79|193,934,050.36|33,140,515.96|2,411,610,375.19|
|Including:Portandterminalfacilities|436,187,670.38|41,528,539.90|713,844.57|477,002,365.71|
|Containeryardsandbuildings|260,763,251.13|25,294,663.09|3,029,785.70|283,028,128.52|
|Mechanicalequipment|1,317,849,657.09|104,582,463.46|13,005,264.44|1,409,426,856.11|
|Motorvehicles,cargoshipsandtugboats|153,286,793.39|13,857,145.76|10,917,922.67|156,226,016.48|
|Otherequipment|82,729,468.80|8,671,238.15|5,473,698.58|85,927,008.37|
|III.Totalnetbookvalueoffixedassets|3,270,600,433.04|||3,094,233,311.50|
|Including:Portandterminalfacilities|1,555,045,793.68|||1,514,869,114.73|
|Containeryardsandbuildings|801,293,521.55|||780,029,115.20|
|Mechanicalequipment|752,981,910.40|||649,668,337.62|
|Motorvehicles,cargoshipsandtugboats|132,883,444.09|||119,784,094.13|
|Otherequipment|28,395,763.32|||29,882,649.82|
|IV.Totalprovisionforimpairmentlosses|57,419,468.96|-|-|57,419,468.96|
|Including:Portandterminalfacilities|4,261,599.48|-|-|4,261,599.48|
|Containeryardsandbuildings|53,157,869.48|-|-|53,157,869.48|
|Mechanicalequipment|-|-|-|-|
|Motorvehicles,cargoshipsandtugboats|-|-|-|-|
|Otherequipment|-|-|-|-|
|V.Totalcarryingvalueoffixedassets|3,213,180,964.08|||3,036,813,842.54|
|Including:Portandterminalfacilities|1,550,784,194.20|||1,510,607,515.25|
|Containeryardsandbuildings|748,135,652.07|||726,871,245.72|
|Mechanicalequipment|752,981,910.40|||649,668,337.62|
|Motorvehicles,cargoshipsandtugboats|132,883,444.09|||119,784,094.13|
|Otherequipment|28,395,763.32|||29,882,649.82|

 Note1: Theincrease oftotal original carrying amount for current period consists ofnew acquisition ofRMB9,545,285.40,an increaseof RMB2,107,378.79transferred from
investment properties,and anincrease ofRMB11,959,537.60 transferred from
construction inprogress. Thedecrease oftotaloriginal carrying amount forcurrent period
consists ofadecrease ofRMB38,156,374.39 resulting from disposaloffixed assets.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 13.Fixed assets -continued
Note2: Theincrease inaccumulated depreciation for current period consists ofcharge forthe current year of RMB192,493,319.57. Thedecrease inaccumulated depreciation for current period consistsof adecrease of RMB32,976,198.14 resulting from disposal of fixed assets .
Note3: As of31December 2016,the Group has nofixed assets that used as collateral. Note4: As of31December 2016,the certificates oftitlefortheGroup's buildings with anet book valueof RMB319,611,656.91 (total original carrying amount: RMB442,079,399.52) have notyet beenobtained. For buildings located withinthescope of Chiwanwatershed with net bookvalueof RMB30,782,553.50(original carrying amount:
RMB118,989,052.62), theunderlying reasons and management's solutionsfor obtaining certificates oftitleare set outin Note (V)15,and therest certificates oftitleare underthe process ofapplication.
(2)Other issues
Unit: RMB
||||
|-|-|-|
|Item|Amount|Note|
|Theoriginalamountsoffixedassetsfullydepreciatedbutstillinuseat31December2016|668,051,469.23||
|Closingoriginalamountoftemporaryidlefixedassets|-||
|Fixedassetsdisposedorretiredinthecurrentyear|-||
|Originalamountoffixedassetsdisposedorretiredinthecurrentyear|38,156,374.39||
|Netbookvalueoffixedassetsdisposedorretiredinthecurrentyear|5,180,176.25||
|Gainsorlossesondisposalorretireoffixedassets|(2,544,833.30)||

14.Construction inprogress
(1)Details ofconstruction in progress are as follows:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item|ClosingBalance|||OpeningBalance|||
||Carryingamount|Provisionforimpairment|Bookvalue|Carryingamount|Provisionforimpairment|Bookvalue|
|BulkgrainwarehousesPhaseII,MachongPort|123,199,182.41|-|123,199,182.41|2,526,814.00|-|2,526,814.00|
|TechnologicaltransformationofBerth7#,ChiwanPort|20,061,782.13|-|20,061,782.13|1,447,719.40|-|1,447,719.40|
|Relaventconstructionworkof50.86meterscoastline,MachongPort|5,130,743.15|-|5,130,743.15|5,098,856.36|-|5,098,856.36|
|Supportingequipment&facilitiesrenovationproject,ChiwanPortterminal|2,051,117.23|-|2,051,117.23|4,802,731.27|-|4,802,731.27|
|Others|14,161,533.39|-|14,161,533.39|8,345,963.75|-|8,345,963.75|
|Total|164,604,358.31|-|164,604,358.31|22,222,084.78|-|22,222,084.78|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued
14.Construction inprogress -continued
(2)Changes in significant construction in progress
Unit:RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|Budgetamount|Openingbalance|Increaseinthecurrentperiod|Transfertofixedandintangibleassets|Decreaseinthecurrentperiod|Closingbalance|Proportionofaccumulatedconstructioninvestmentinbudget|Constructionprogress|Amountofaccumulatedcapitalisedinterest|Including:capitalisedinterestforthecurrentperiod|Interestcapitalisationrateforthecurrentperiod(%)|Capitalsource|
|BulkgrainwarehousesPhaseII,MachongPort|320,000,000.00|2,526,814.00|120,672,368.41|-|-|123,199,182.41|38.50|38.50|107,179.17|107,179.17|4.35|Self-fundingandloan|
|TechnologicaltransformationofBerth7#,ChiwanPort|29,500,000.00|1,447,719.40|18,614,062.73|-|-|20,061,782.13|68.01|68.01|-|-|-|Self-funding|
|Relaventconstructionworkof50.86meterscoastline,MachongPort|36,000,000.00|5,098,856.36|31,886.79|-|-|5,130,743.15|14.25|14.25|-|-|-|Self-funding|
|Supportingequipment&facilitiesrenovationproject,ChiwanPortterminal|40,783,220.17|4,802,731.27|319,846.60|2,447,615.05|623,845.59|2,051,117.23|12.56|12.56|-|-|-|Self-funding|
|Others|788,274,449.17|8,345,963.75|15,802,835.51|9,511,922.55|475,343.32|14,161,533.39|3.06|3.06|-|-|-|Self-funding|
|Total|1,214,557,669.34|22,222,084.78|155,441,000.04|11,959,537.60|1,099,188.91|164,604,358.31|||107,179.17|107,179.17|||

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 15.Intangibleassets
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Openingcarryingamount|Increase|Decrease|Closingcarryingamount|
|I. Totaloriginalcarryingamount|1,603,264,701.83|2,631,696.88|1,186,210.60|1,604,710,188.11|
|Landuserights-prepaidunderlease(Note3)|1,198,990,903.76|1,451,634.16(Note1)|174,964.92|1,200,267,573.00|
|Landuserights-prepaidunderinvestment(Note3)|122,623,476.00|-|-|122,623,476.00|
|Landuserights-purchased|116,702,512.59|-|-|116,702,512.59|
|Computersoftware|32,061,672.48|1,180,062.72|65,258.68|33,176,476.52|
|Seaareauserights|72,886,137.00|-|945,987.00|71,940,150.00|
|Coastlineuserights|60,000,000.00|-|-|60,000,000.00|
|II. Totalaccumulatedamortization|556,368,079.85|38,760,867.85(Note2)|1,186,210.60|593,942,737.10|
|Landuserights-prepaidunderlease(Note3)|459,820,965.73|29,086,432.28|174,964.92|488,732,433.09|
|Landuserights-prepaidunderinvestment(Note3)|57,428,661.26|2,452,469.52|-|59,881,130.78|
|Landuserights-purchased|6,475,618.84|2,386,226.16|-|8,861,845.00|
|Computersoftware|22,130,915.57|2,023,935.20|65,258.68|24,089,592.09|
|Seaareauserights|9,355,651.15|1,424,283.93|945,987.00|9,833,948.08|
|Coastlineuserights|1,156,267.30|1,387,520.76|-|2,543,788.06|
|III. Totalnetcarryingamountofintangibleassets|1,046,896,621.98|||1,010,767,451.01|
|Landuserights-prepaidunderlease(Note3)|739,169,938.03|||711,535,139.91|
|Landuserights-prepaidunderinvestment(Note3)|65,194,814.74|||62,742,345.22|
|Landuserights-purchased|110,226,893.75|||107,840,667.59|
|Computersoftware|9,930,756.91|||9,086,884.43|
|Seaareauserights|63,530,485.85|||62,106,201.92|
|Coastlineuserights|58,843,732.70|||57,456,211.94|
|IV.Totalprovisionforimpairment|-|-|-|-|
|Landuserights-prepaidunderlease|-|-|-|-|
|Landuserights-prepaidunderinvestment|-|-|-|-|
|Landuserights-purchased|-|-|-|-|
|Computersoftware|-|-|-|-|
|Seaareauserights|-|-|-|-|
|Coastlineuserights|-|-|-|-|
|V. Totalcarryingvalueofintangibleassets|1,046,896,621.98|||1,010,767,451.01|
|Landuserights-prepaidunderlease(Note3)|739,169,938.03|||711,535,139.91|
|Landuserights-prepaidunderinvestment(Note3)|65,194,814.74|||62,742,345.22|
|Landuserights-purchased|110,226,893.75|||107,840,667.59|
|Computersoftware|9,930,756.91|||9,086,884.43|
|Seaareauserights|63,530,485.85|||62,106,201.92|
|Coastlineuserights|58,843,732.70|||57,456,211.94|

 Note1:It istransferred from investment properties.
Note2:Theamortization forthe current period is RMB37,673,273.86.
Note3:TheGroup has obtained theland useright for berth andcontainer yard located inChiwan watershed area with original amount of RMB1,400,288,984.00 from Nanshan Group. The tenure ranging between 20- 50years. The land with atotal area of1,049,946.00square meters consists ofan area of2.2square kilometers invested byShenzhenInvestment
HoldingCorporation, astockholder ofNanshan Group, and alandarising from marine
reclamation byNanshan Group.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued 15.Intangibleassets - continued
Theland use rights for theplot of270,692sq. meters (original amount:
RMB122,623,476.00)was contributed byNanshan Group as capital injection at corporate restructuring oftheCompany. Therest land userights were obtained from Nanshan Group bylong-term leasing.
SinceNanshan Group has yet obtained official certificates ofland userights forthe above lands so far, theGroup has nocertificates of titlefor relevant land and buildings either. On 20March 2001,18June2003and 29September2004,Nanshan Group made commitmentsonall thelanduse rights obtained bytheGroup from it as ofthe
commitmentdate respectively: Nanshan Group has noright towithdraw thecommitment and will unconditionallyconsent that, iftheGroup suffers loss,bears expenseand liability, is claimed for compensation orruns into lawsuit, for any actually or potentiallyillegal and non-executableissues arising from landuse right agreements and theirrelevant documents which signed or willbesigned bytheGroup, Nanshan Group guarantees that theacquiring party and itsinheritorof thoseland useright will befully exempted from above issues. Hence, directors oftheCompany believe there is nosignificant impairment risk inrespect oftheabsence ofland useright certificate andnosignificant contingent liability. Themanagement notes that Nanshan Group is positively approaching relevant government authorities to solvetheabove historical land problem, however, itcannot predict theexact timeto obtain legal certificates of titlefor aboveland and relevant buildingproperty ownership certificates.
As of31December 2016,long-term leaseagreements forland use rights of146,613.00 square meters with total original carrying amount ofRMB99,495,264.16 mentioned above have expired.
16.Goodwill
Unit: RMB
||||||
|-|-|-|-|-|
|Investee|Openingbalance|Increaseforthecurrentperiod|Decreaseforthecurrentperiod|Closingbalance|
|CCT|10,858,898.17|-|-|10,858,898.17|

 Note: Thegoodwill arose from theacquisition ofthe minorityinterests in CCT inprior years, beingthedifference of theadditional cost ofinvestment and theGroup's share ofthe fair valueof theidentifiablenet assets in CCT.Based onpast years' operation performance and development forecast ofthe Company, themanagement holds theopinion that theseis no need toallocate impairment togoodwill arising from the investmentof CCT.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued 17.Long-term prepaidexpenses
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Openingbalance|Increase|Amortization|Otherdecreases|Closingbalance|OriginalCost|Residualusefullife|
|ConstructionexpenditureofTonggusea-route(Note)|56,946,077.44|-|2,056,904.40|-|54,889,173.04|71,991,655.56|27years|
|Golfmembership|295,732.53|-|27,712.34|212,716.59|55,303.60|2,028,316.60|1-6years|
|Total|57,241,809.97|-|2,084,616.74|212,716.59|54,944,476.64|74,019,972.16||

 Note: In 2007,Shenzhen municipal government launched theconstruction work ofthepublic sea routeconnecting 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 thegovernment resolution,60%ofdredging expenditurewould beborn bythe investeecompanies whiletheremaining40%born bythegovernment.35%ofthe expenditureborn bythe investeecompanies was assumed bytheport operators in Western Shenzhen port ,and theallocation portion toeach operator was determined on the basis of function, waterfront length, and berthing ship ofeachport operator. The Tonggusea-route construction expenses allocated to theGroup isamortized onastraight- linebasis over 35years oftheexpected useful lives ofConnecting Sea Routestarting from 2008whentheTonggu sea-route is putinto use.
18.Deferred tax assets and deferred tax liabilities
(1)Deferred tax assets that are presented at thenet amount withoutoffsetting
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Closingbalance||Openingbalance||
||Deductibletemporarydifferences|Deferredtaxassets|Deductibletemporarydifferences|Deferredtaxassets|
|Deferredincome|24,550,555.40|6,137,638.85|24,769,557.06|6,192,389.27|
|Organizationcosts|21,347,408.91|4,410,860.21|24,827,835.78|4,663,638.91|
|Provisionforimpairmentlossesofassets|5,947,568.77|1,294,075.11|1,256,892.70|199,181.44|
|Depreciationoffixedassetsandamortizationofintangibleassets|620,721.18|146,555.33|186,560.41|46,640.12|
|Others|1,303,115.87|232,628.97|959,082.56|172,471.08|
|Total|53,769,370.13|12,221,758.47|51,999,928.51|11,274,320.82|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued 18.Deferred tax assets and deferred tax liabilities- continued
(2)Deferred tax liabilities that are presented at thenet amount without offsetting
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Closingbalance||Openingbalance||
||Taxabletemporarydifferences|Deferredtaxliabilities|Taxabletemporarydifferences|Deferredtaxliabilities|
|Changeinfairvalueofavailable-for-salefinancialassets|7,430,000.00|1,857,500.00|7,630,000.00|1,907,500.00|

(3) Deferred tax assets or liabilities that are presented at thenet amount after offsetting Unit: RMB
||||||
|-|-|-|-|-|
|Item|Closingamountofdeferredtaxassetsandliabilitiesthatareoffset|Closingamountofdeferredtaxassetsorliabilitiesafteroffsetting|Openingamountofdeferredtaxassetsandliabilitiesthatareoffset|Openingamountofdeferredtaxassetsorliabilitiesafteroffsetting|
|Deferredtaxassets|-|12,221,758.47|-|11,274,320.82|
|Deferredtaxliabilities|-|1,857,500.00|-|1,907,500.00|

 (4)Details of unrecognized deferred tax assets
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Deductibletemporarydifferences|102,828,757.97|109,232,919.91|
|Deductiblelosses|177,001,767.54|175,298,730.79|
|Total|279,830,525.51|284,531,650.70|

 Note: Deferred tax assets are not recognized fortheabove-mentioned deductibletemporary differences and deductible losses dueto uncertainty whether sufficient taxableprofits will beavailable in thefuture.
(5)Deductible losses for unrecognized deferred tax assets willbe expired in thefollowing years Unit: RMB
|||||
|-|-|-|-|
|Year|Closingbalance|Openingbalance|Note|
|2016|-|16,885,955.11||
|2017|30,345,268.82|30,345,268.82||
|2018|75,300,266.59|75,300,266.59||
|2019|49,621,628.48|49,621,628.48||
|2020|3,145,611.79|3,145,611.79||
|2021|18,588,991.86|-||
|Total|177,001,767.54|175,298,730.79||

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued 19.Othernon-current assets
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|LandUseRight(Note)|132,369,704.86|132,334,704.86|

 Note: In March and October2006,November 2007and September 2014,theGroup entered into CooperationFramework Agreement onUsage ofCoastlineandLand for2#-5#Berth at Machong Port in Dongguan andits supplementary agreements with Dongguan Humen PortAdministration Commission.The Group purchased userights ofcoastlineand land witha totalarea of800,000square meters, includingwaters withdepth of700meters from thefront ofterminal, and coastlinefrom berth2#to berth5#witha total length of1,200 meters at Dongguan Machong Portat a considerationof RMB260,000,000. As theGroup has not obtained theuse right certificates forthe above land, therelevant prepayments were therefore recognized as other non-current assets.
20.Short-termborrowings
Unit:RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Creditloan|-|141,610,178.37|

 21.Accounts payable
(1)Details ofaccounts payable
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Service|46,961,672.78|51,543,398.18|
|Materialpurchase|21,834,346.04|17,995,475.96|
|Rental|9,619,783.53|7,029,001.36|
|Construction|10,891,405.40|14,693,668.46|
|Equipment|137,389.35|192,294.70|
|Total|89,444,597.10|91,453,838.66|

 (2)There isnosignificant accounts payable agaed more than oneyear at theend oftheyear. 22.Receipts in advance
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Servicefeereceiptinadvance|30,668,212.67|40,504,130.84|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued 23.Employee benefits payable
(1)Employee benefits payable
Unit:RMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseforthecurrentperiod|Decreaseforthecurrentperiod|Closingbalance|
|I.Short-termbenefits|77,084,662.63|318,730,860.40|309,233,698.77|86,581,824.26|
|II.Post-employmentbenefits-definedcontributionplans|-|36,751,096.98|36,751,096.98|-|
|III.Terminationbenefits|-|9,103,327.21|7,106,659.21|1,996,668.00|
|Total|77,084,662.63|364,585,284.59|353,091,454.96|88,578,492.26|

 (2)Short-term benefits
Unit:RMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseforthecurrentperiod|Decreaseforthecurrentperiod|Closingbalance|
|I.Wagesandsalaries,bonuses,allowancesandsubsidies|64,209,436.41|263,487,056.48|253,478,801.09|74,217,691.80|
|II.Staffwelfare|-|13,358,716.49|13,358,716.49|-|
|III.Socialinsurancecharges|535.54|9,277,760.14|9,277,760.14|535.54|
|Including:Medicalinsurance|-|7,598,900.22|7,598,900.22|-|
|Workinjuryinsurance|535.54|788,754.81|788,754.81|535.54|
|Maternityinsurance|-|890,105.11|890,105.11|-|
|IV.Housingfunds|-|19,795,064.23|19,795,064.23|-|
|V.Laborunionandemployeeeducationfunds|12,874,690.68|5,775,765.79|6,286,859.55|12,363,596.92|
|VI.Others|-|7,036,497.27|7,036,497.27|-|
|Total|77,084,662.63|318,730,860.40|309,233,698.77|86,581,824.26|

 Note: There are noamounts in arrears underthe employee benefits payable.
(3)Post-employement benefits -defined contribution plans
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increaseforthecurrentperiod|Decreaseforthecurrentperiod|Closingbalance|
|I.Basicpension(Note1)|-|25,784,070.95|25,784,070.95|-|
|II.Unemploymentinsurance(Note1)|-|412,603.16|412,603.16|-|
|III.Enterpriseannuityplan (Note2)|-|10,554,422.87|10,554,422.87|-|
|Total|-|36,751,096.98|36,751,096.98|-|

 Note1: The Group participates in thesocial security contributions and theunemployment insurance plan established bygovernment institutionsas required. According to such plans, theGroup contributes14%(13%for staffs without Shenzhen householder register )of mothlybasicsalary,0.8%(0.5%for staffs inDongguan City) respectively to such plans based onthe minimumsalary benchmark.
During the year, theGroup is obliged to contributeRMB 25,784,070.95and RMB
412,603.16respectively tothesocial security contributions and the unemployment
insurance plan (2015: RMB23,580,447.85and RMB 694,705.15). As at 31December
2016,the Group have nooutstandingcontributions to bepaid to thesocial security
contributions and theunemployment insurance plan.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued 23.Employee benefits payable-continued
(3)Post-employement benefits -defined contribution plans -continued
Note2: On 3June2008,theGroup participated in a group defined enterpriseannuity plan of Nanshan Group approved byShenzhen municipalgovernment. This supplementary pension contributions were paid into amanaged account through Nanshan Group. 24.Taxes payable
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increase|Decrease|Closingbalance|
|Enterpriseincometax|16,077,966.04|97,647,283.26|93,723,979.07|20,001,270.23|
|Withholdingtax(Note)|26,779,214.63|2,265,005.57|7,755,922.87|21,288,297.33|
|Businesstax|187,545.59|1,225,050.81|1,412,596.40|-|
|VAT|1,957,048.39|24,400,240.70|22,884,726.70|3,472,562.39|
|Others|3,132,828.09|28,368,009.15|27,758,137.39|3,742,699.85|
|Total|48,134,602.74|153,905,589.49|153,535,362.43|48,504,829.80|

 Note: Theamount represents thewithholdingtax provided bytheGroup at therateof5%or10% when paying out dividends toforeign shareholders and Chiwan WharfHoldings (Hong Kong) Limited located in HongKong.
25.Interest payable
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Mid-termbillinterest|1,952,876.72|-|
|Short-termfinancingbondsinterest|614,383.56|12,687,267.77|
|Short-termborrowingsinterest|-|79,146.51|
|Corporatebondsinterest|-|5,753,424.65|
|Total|2,567,260.28|18,519,838.93|

 26.Dividendspayable
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Ordinarysharedividends|-|88,715,008.17|
|Including:PayabletoInternationalEnterpriseCo.,Ltd.|-|50,466,621.41|
|PayabletoHidoneyDevelopmentsCo.,Ltd.("Hidoney")|-|38,248,386.76|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued 27.Otherpayables
(1)Other payables presented bythenature ofamount
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Amountpayableforconstructionandqualitywarranty|37,664,828.31|40,593,200.80|
|Temporaryreceipts|11,011,631.18|13,871,671.22|
|Securityexpensepayable|7,942,731.71|4,584,940.63|
|Depositsreceived|4,424,738.15|5,903,230.85|
|Others|13,546,464.74|11,760,880.32|
|Total|74,590,394.09|76,713,923.82|

 (2)There isnosignificant other payables ageing more thanoneyear.
28.Non-currentliabilities duewithin oneyear
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Deferredincomeduewithinoneyear|-|5,306,254.17|

 29.Othercurrentliabilities
(1)Short-term bonds payable
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Short-termbondspayable|250,000,000.00|500,000,000.00|

 (2)Changes ofshort-term bonds payable:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Nameofbond|Facevalue|Dateofissue|Termofthebond|Amountofissue|Openingbalance|Amountissuedinthecurrentperiod|Interestaccruedatparduringtheyear|Discountorpremiumamortization|Repaymentinthecurrentyear|Closingbalance|
|15ChiwanportCP001(Note1)|300,000,000.00|10/04/2015|366days|300,000,000.00|300,000,000.00|-|4,136,885.24|-|300,000,000.00|-|
|15ChiwanportSCP003(Note2)|200,000,000.00|08/09/2015|268days|200,000,000.00|200,000,000.00|-|2,913,661.20|-|200,000,000.00|-|
|16ChiwanportSCP001(Note2)|150,000,000.00|19/07/2016|150days|150,000,000.00|-|150,000,000.00|1,726,027.40|-|150,000,000.00|-|
|16ChiwanportSCP002(Note2)|150,000,000.00|11/10/2016|70days|150,000,000.00|-|150,000,000.00|805,479.45|-|150,000,000.00|-|
|16ChiwanportSCP003(Note2)|250,000,000.00|07/12/2016|180days|250,000,000.00|-|250,000,000.00|614,383.56|-|-|250,000,000.00|
|Total|1,050,000,000.00|||1,050,000,000.00|500,000,000.00|550,000,000.00|10,196,436.85|-|800,000,000.00|250,000,000.00|

 Note1: According to theNoticeof RegistrationAcceptance (filed as Zhong ShiXie Zhu[2013] No. CP171)issued byChina's Interbank Market Dealers Association received by the Company on7May 2013,theAssociation approvedtheCompany's short-term financing registration ofRMB 1.6billion in total.
Note2: According to theNoticeof RegistrationAcceptance (filed as Zhong ShiXie Zhu[2015]
No. SCP121)issued byChina's Interbank Market Dealers Association received bythe
Company on5June2015,theAssociation approvedtheCompany's short-term financing
registration ofRMB 1.6billion in total.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 30.Bonds payable
(1) Bonds payable
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Corporatebonds|298,331,506.85|497,764,383.59|

 (2)Changes ofbonds payable:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Nameofbonds|Facevalue|Dateofissue|Termofthebond|Amountofissue|Openingbalance|Amountissuedinthecurrentyear|Interestaccruedatparduringtheyear|Discountorpremiumamortization|Repaymentinthecurrentyear|closingbalance|
|13ChiWan01(Note1)|100.00|18/10/2013|5years|500,000,000.00|497,764,383.59|-|22,246,575.35|2,235,616.41|500,000,000.00|-|
|ChiwanWharfMTN001(Note2)|100.00|11/10/2016|3years|300,000,000.00|-|300,000,000.00|1,952,876.72|(1,668,493.15)|-|298,331,506.85|
|Total||||800,000,000.00|497,764,383.59|300,000,000.00|24,199,452.07|567,123.26|500,000,000.00|298,331,506.85|

 Note1: On 25November 2011,theCompanyreceived theApproval from ChinaSecurities Regulatory Commission(filed as Zhen Jian XuKe[2011]No.1889) toissuecorporate bonds with facevalue nomorethan 1billion. This bondsissued in 2terms.
On 26April2012,the Company's actual issueamounted to RMB500,000,000 which was redempted at fullamount on27April 2015.
On 18October 2013,theCompany's actual issueamounted to RMB500,000,000 with the term of fiveyears. The bondinterests should becalculated onsimpleinterest basis at a nominal fixedinterest rateof5.60%ona yearly basis and repaid onceannually. According to thebondprospectus, theCompany should makean announcement on whether to exercise theredemption option at the30th trading date before theinterest payment datein thethird interest-bearing year. If thedecision ofexercising the redemption option is made, the bond would be regarded as to be matured in the third year. If thedecision ofnot exercising theredemption ofoption is made, theCompany should make anannouncement onwhether to raise theinterest rateand theextentofvariation, which ranges from zero to 100base points.If theCompany chooses to exercise theoption ofraising thestated interest rate, the stated interest rate oftheportion of non-put-back bonddue in two years after theremaining period equals to thestated interest rate duein three years priorto theremaining period plus theincreased basepoint, and the stated interest rate ofthebondduein two years after theremaining period would be fixed. If the Company chooses nottoexercise theoption ofraising thestated interest rate, theoriginal stated interest rate remains thesame fortheportion ofnon-put-back bondduein two years after the remaining period.
Investors havethe optiontosell bonds back tothe Company at theinterest payment date
in thethird interest-bearing year at theparvalue wholly orinpartially, after theCompany
makes theannouncement onwhether toraise thestated interest rate and theextentof
variation.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 30.Bonds payable-continued
(2)Changes ofbonds payable: -continued
If theCompany abandons the redemption option and thebondholders abandon theput back option wholly orpartially, therest of theprincipal would be paid back in advance. Namely,30%proportion ofthe principal should bepaidback at theend ofthefourth year since thebondissued and the rest shouldbe paid back at theend ofthefifth year. In accordance with theResolution for Redemption of CorporateBonds (Term I) issued by the Companyin 2013which was reviewed and passed at the sixthsession of theeighth Board ofDirectors held on24June2016,the Company decided toexcercise the redemption optionfor corporatebonds (term I) issued bytheCompanyin2013. Therefore, the “13ChiWan 01”corporate bonds registered as at theredemption date were fully repurchased bytheCompany at the face valueplus interest fortheperiod end 17 Octorber2016,the dateappointed inthe bondprospectus.
Note2: According to theNoticeof RegistrationAcceptance (filed as Zhong ShiXieZhu[2016] MTN No. 325)issued bytheChina's Interbank Market Dealers Association received by the Companyon6August 2016.The Company isentitled to issuemid-term billsnomore than RMB800,000,000with an effective period of2years.
31.Specialpayables
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Openingbalance|Increase|Decrease|ClosingBalance|Reason|
|RefundsofHarborConstructionFee|34,990,596.50|-|663,736.06|34,326,860.44|Note|

 Note: Theitem is refunds ofharbor construction fee from ShenzhenTraffic Bureau. According toMeasures of Harbor Construction FeeManagement released byMinistryof Finance, thefunds should bemanaged in separate account and can be onlyused onfundamental facilities' construction of marinetransportation.
32.Deferred income
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Openingbalance|Increase|Decrease|ClosingBalance|Reason|
|Deferredincome|67,063,782.62|3,535,240.18|5,985,702.92|64,613,319.88||
|Including:Berthpriorityright|38,067,281.42|2,535,240.18|4,966,056.92|35,636,464.68|Note1|
|Governmentgrantsrelatedtoassets|28,996,501.20|1,000,000.00|1,019,646.00|28,976,855.20|Note2|
|Total|67,063,782.62|3,535,240.18|5,985,702.92|64,613,319.88||
|Less:Non-currentliabilitiesduewithinoneyear|5,306,254.17|||-||
|Including:Berthpriorityright|4,707,860.00|||-||
|Governmentgrantsrelatedtoassets|598,394.17|||-||
|Deferredincome|61,757,528.45|||64,613,319.88||

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 32.Deferred income- continued
Note1: This item represents berth priority right with totalamounts toUSD14,000,000 that agreed in thecontract signed in 2003.TheGroup should satisfy theberthing requirement of contracted customers in priority during thecontract period. According to thecontract, the berth priority right should beamortized over twenty years onthestraight-linebasis. Note2: Theitem represents thegovernment grants received bytheGroup which is based onthe Announcement Released byNational Development andReformCommission about 2010 Investment Plans within Budget of Grains andModern LogisticsProgram(NDRC[2010] No.1263), theAnnouncement Released byGuangdong Provincial Department of Finance about 2012Provincial Special Funds toGuidethe Development of Modern Service Project (Guangdong Production Letter[2012]No. 621)and Transportation of energy saving special funds Interim Measures (Finance Building[2011]No. 374), Nanshan District, Shenzhen, energy saving projects funded sub contract, Announcement Released byReform andDevelopment Commission of Guangdong Province andtheGrain Bureau of Guangdong Province about 2015Investment Plans within Budget of Grains and Modern LogisticsProgram(GDRC[2015]No.521), Measures Released byDongguan Government about Grants Management to Special Fund Programfor theDevelopment of NationalandProvincial Industries(DGM[2013]No.162), InterimMeasures Released by Shenzhen Government about theManagement toSpecial Fundused inRecycling Economy andEnergy Savings, andtheReply ofMinistry ofTransportto Implementation Programof Building 19RegionalProjects such as theConstructionof aGreen Recycling Low-carbon Transportation Cityby BeijingGovernment (Transportation Law
Letter[2014]No.499),TheMinistryofFinance, Ministryof TechnologyandSicence, MinistryofIndustry andInformation, NationalDevelopment andReform Commission's NoticeonFinancial Supportto Application of NewEnergy Vehicles from2016to 2020 (Cai Jian[2015]No.134).The government grants shall beamortized onthestraight-line basis over theuseful lifeof therelated assets.
Programs related with government grants:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|LiabilityProgram|Openingbalance|Newsubsidyoftheyear|Theamountincludedinoperatingincomeoftheyear|Otherchanges|ClosingBalance|Relatedtoassets/Relatedtoincome|
|Specialfundsformodernlogisticsproject|23,360,000.54|-|166,956.48|-|23,193,044.06|Relatedtoassets|
|Specialfundsfordevelopmentofmodernserviceguide|1,409,557.00|-|52,045.20|-|1,357,511.80|Relatedtoassets|
|Specialfundsforenergy-savingandemissionreductionoftransportation|2,130,000.00|-|360,000.00|-|1,770,000.00|Relatedtoassets|
|Rewardforenergysaving|2,006,666.66|-|200,000.04|-|1,806,666.62|Relatedtoassets|
|Greencarbonharborthematicprojectssubsidygrantedbycentralgovernment|90,277.00|-|23,977.60|-|66,299.40|Relatedtoassets|
|Subsidyforelectricbuses|-|1,000,000.00|216,666.68|-|783,333.32|Relatedtoassets|
|Total|28,996,501.20|1,000,000.00|1,019,646.00|-|28,976,855.20||

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 33.Sharecapital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Openingbalance|Changesfortheperiod|||||Closingbalance|
|||Newissueofshare|Bonusissue|Capitalisationofsurplusreserve|Others|Subtotal||
|2016:||||||||
|I.Restrictedtradableshares||||||||
|1. State-ownedshares|-|-|-|-|-|-|-|
|2. State-ownedlegalpersonshares|-|-|-|-|-|-|-|
|3. Otherdomesticshares|431,094.00|-|-|-|(125,994.00)|(125,994.00)|305,100.00|
|4. Otherforeignshares|-|-|-|-|-|-|-|
|Totalrestrictedtradableshares|431,094.00|-|-|-|(125,994.00)|(125,994.00)|305,100.00|
|II.Non-restrictedtradableshares||||||||
|1. OrdinarysharesdenominatedinRMB|464,866,999.00|-|-|-|(949.00)|(949.00)|464,866,050.00|
|2. Foreigncapitalshareslisteddomestically|179,465,637.00|-|-|-|126,943.00|126,943.00|179,592,580.00|
|3. Foreigncapitalshareslistedoverseas|-|-|-|-|-|-|-|
|4. Others|-|-|-|-|-|-|-|
|Totalnon-restrictedtradableshares|644,332,636.00|-|-|-|125,994.00|125,994.00|644,458,630.00|
|III.Totalshares|644,763,730.00|-|-|-|-|-|644,763,730.00|
|2015:||||||||
|I.Restrictedtradableshares||||||||
|1. State-ownedshares|-|-|-|-|-|-|-|
|2. State-ownedlegalpersonshares|-|-|-|-|-|-|-|
|3. Otherdomesticshares|367,401.00|-|-|-|63,693.00|63,693.00|431,094.00|
|4. Otherforeignshares|-|-|-|-|-|-|-|
|Totalrestrictedtradableshares|367,401.00|-|-|-|63,693.00|63,693.00|431,094.00|
|II.Non-restrictedtradableshares||||||||
|1. OrdinarysharesdenominatedinRMB|464,867,324.00|-|-|-|(325.00)|(325.00)|464,866,999.00|
|2. Foreigncapitalshareslisteddomestically|179,529,005.00|-|-|-|(63,368.00)|(63,368.00)|179,465,637.00|
|3. Foreigncapitalshareslistedoverseas|-|-|-|-|-|-|-|
|4. Others|-|-|-|-|-|-|-|
|Totalnon-restrictedtradableshares|644,396,329.00|-|-|-|(63,693.00)|(63,693.00)|644,332,636.00|
|III.Totalshares|644,763,730.00|-|-|-|-|-|644,763,730.00|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 34.Capital reserve
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Openingbalance|Increase|Decrease|Closingbalance|
|2016:|||||
|Capitalpremium|163,560,083.00|-|-|163,560,083.00|
|Including:Capitalcontributedbyinvestors|163,560,083.00|-|-|163,560,083.00|
|Exercisedconversionoptionofconvertiblecorporatebonds|-|-|-|-|
|Debtconvertedintocapital|-|-|-|-|
|Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol|-|-|-|-|
|Equityacquisitionfromminorityshareholdersofsubsidiaries|-|-|-|-|
|Capitalreserveconvertedintocapital|-|-|-|-|
|Othercapitalreserve|2,004,656.15|1,915,642.10|-|3,920,298.25|
|Including:Equitysplitfromconvertiblecorporatebonds|-|-|-|-|
|Fairvalueofequity-settledshare-basedequityinstrument|-|-|-|-|
|Surplusofcompensationgrantedbygovernmentforrelocationinthepublicinterests|-|-|-|-|
|Transferfromcapitalreserveunderthepreviousaccountingsystem|(2,781,133.00)|-|-|(2,781,133.00)|
|Others|4,785,789.15|1,915,642.10(Note)|-|6,701,431.25|
|Total|165,564,739.15|1,915,642.10|-|167,480,381.25|
|2015:|||||
|Capitalpremium|163,560,083.00|-|-|163,560,083.00|
|Including:Capitalcontributedbyinvestors|163,560,083.00|-|-|163,560,083.00|
|Exercisedconversionoptionofconvertiblecorporatebonds|-|-|-|-|
|Debtconvertedintocapital|-|-|-|-|
|Differencesarisingfrombusinesscombinationinvolvingenterprisesundercommoncontrol|-|-|-|-|
|Equityacquisitionfromminorityshareholdersofsubsidiaries|-|-|-|-|
|Capitalreserveconvertedintocapital|-|-|-|-|
|Othercapitalreserve|(861,527.35)|2,866,183.50(note)|-|2,004,656.15|
|Including:Equitysplitfromconvertiblecorporatebonds|-|-|-|-|
|Fairvalueofequity-settledshare-basedequityinstrument|-|||-|
|Surplusofcompensationgrantedbygovernmentforrelocationinthepublicinterests|-|-|-|-|
|Transferfromcapitalreserveunderthepreviousaccountingsystem|(2,781,133.00)|-|-|(2,781,133.00)|
|Others|1,919,605.65|2,866,183.50|-|4,785,789.15|
|Total|162,698,555.65|2,866,183.50|-|165,564,739.15|

Note：This is thecapital reserve recoginized onpro ratabasis of ownership interest held bythe Group due tothe changes ofotherequity of theassociate oftheGroup, ChinaMerchant Bonded Logistics.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 35.Othercomprehensiveincome
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|Openingbalance|Amountincurredincurrentyear|||||Closingbalance|
|||Amountbeforeincometaxincurredincurrentyear|Less:Amountincludedinothercomprehensiveincomeinthepriorperiodsthatistransferredtoprofitorlossfortheperiod|Less:incometaxexpenses|Post-taxamountattributabletoshareholdersoftheCompany|Post-taxamountattributabletominorityholders||
|2016||||||||
|I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss|-|-|-|-|-|-|-|
|Including:Changeasaresultofremeasurementofthenetdefinedbenefitplanliabilityorasset|-|-|-|-|-|-|-|
|Shareofothercomprehensiveincomeoftheinvesteeundertheequitymethodthatwillnotbereclassifiedtoprofitorloss|-|-|-|-|-|-|-|
|II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss|(7,889,646.43)|(200,000.00)|-|(50,000.00)|(150,000.00)|-|(8,039,646.43)|
|Including:Shareofothercomprehensiveincomeoftheinvesteeundertheequitymethodthatwillbereclassifiedtoprofitorloss|100,000.00|-|-|-|-|-|100,000.00|
|Gainsorlossesonchangesinfairvalueofavailable-for-salefinancialassets|5,722,500.00|(200,000.00)|-|(50,000.00)|(150,000.00)|-|5,572,500.00|
|Gainsorlossesonreclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets|-|-|-|-|-|-|-|
|Effectiveportionofgainsorlossesoncashflowhedges|-|-|-|-|-|-|-|
|Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies|(13,712,146.43)|-|-|-|-|-|(13,712,146.43)|
|Total|(7,889,646.43)|(200,000.00)|-|(50,000.00)|(150,000.00)|-|(8,039,646.43)|
|2015||||||||
|I.Othercomprehensiveincomethatwillnotbereclassifiedsubsequentlytoprofitorloss|-|-|-|-|-|-|-|
|Including:Changeasaresultofremeasurementofthenetdefinedbenefitplanliabilityorasset|-|-|-|-|-|-|-|
|Shareofothercomprehensiveincomeoftheinvesteeundertheequitymethodthatwillnotbereclassifiedtoprofitorloss|-|-|-|-|-|-|-|
|II.Othercomprehensiveincomethatwillbereclassifiedsubsequentlytoprofitorloss|(8,977,146.43)|1,450,000.00|-|362,500.00|1,087,500.00|-|(7,889,646.43)|
|Including:Shareofothercomprehensiveincomeoftheinvesteeundertheequitymethodthatwillbereclassifiedtoprofitorloss|100,000.00|-|-|-|-|-|100,000.00|
|Gainsorlossesonchangesinfairvalueofavailable-for-salefinancialassets|4,635,000.00|1,450,000.00|-|362,500.00|1,087,500.00|-|5,722,500.00|
|Gainsorlossesonreclassificationofheld-to-maturityinvestmentstoavailable-for-salefinancialassets|-|-|-|-|-|-||
|Effectiveportionofgainsorlossesoncashflowhedges|-|-|-|-|-|-|-|
|Translationdifferencesoffinancialstatementsdenominatedinforeigncurrencies|(13,712,146.43)|-|-|-|-|-|(13,712,146.43)|
|Total|(8,977,146.43)|1,450,000.00|-|362,500.00|1,087,500.00|-|(7,889,646.43)|

 36.Specialreserve
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increase|Decrease|Closingbalance|
|2016:|||||
|Productionsafetyfee|3,719,755.58|19,844,261.39|19,418,251.32|4,145,765.65|
|2015:|||||
|Productionsafetyfee|2,219,777.52|15,469,088.96|13,969,110.90|3,719,755.58|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 37.Surplusreserve
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Openingbalance|Increase|Decrease|Closingbalance|
|2016:|||||
|Statutorysurplusreserve|520,074,434.56|-|-|520,074,434.56|
|2015:|||||
|Statutorysurplusreserve|520,074,434.56|-|-|520,074,434.56|

 Note: In accordance withthe CompanyLawof thePRC and theCompany's Articles of Association, theCompany should appropriate10% ofnet profit for theyear to thestatutory surplus reserve, andtheCompany can ceaseappropriation when thestatutory surplus reserve accumulates to morethan50%of theregistered capital. Thestatutory surplus reserve canbe used to makeupfor theloss orincrease thepaid-in capital after approval. 38.Unappropriatedprofit
Unit: RMB
||||
|-|-|-|
|Item|Amount|Proportionofappropriationorallocation|
|2016:|||
|Beforeadjustment:Unappropriatedprofitattheendofprioryear|3,113,367,524.19||
|Adjustment:Totalunappropriatedprofitatthebeginningofyear|-||
|Afteradjustment:Unappropriatedprofitatthebeginningofyear|3,113,367,524.19||
|Add:NetprofitattributabletoshareholdersoftheCompanyfortheyear|532,376,492.97||
|Less:Appropriationtostatutorysurplusreserve|-|Note1|
|Appropriationtodiscretionarysurplusreserve|-||
|Appropriationtogeneralriskreserve|-||
|Ordinaryshares'dividendspayable|264,353,129.30|Note2|
|Ordinaryshares'dividendsconvertedintosharecapital|-||
|Unappropriatedprofitattheendoftheyear|3,381,390,887.86||
|2015:|||
|Beforeadjustment:Unappropriatedprofitattheendofprioryear|2,794,519,480.29||
|Adjustment:Totalunappropriatedprofitatthebeginningofyear|-||
|Afteradjustment:Unappropriatedprofitatthebeginningofyear|2,794,519,480.29||
|Add:NetprofitattributabletoshareholdersoftheCompanyfortheyear|527,751,492.42||
|Less:Appropriationtostatutorysurplusreserve|-||
|Appropriationtodiscretionarysurplusreserve|-||
|Appropriationtogeneralriskreserve|-||
|Ordinaryshares'dividendspayable|208,903,448.52||
|Ordinaryshares'dividendsconvertedintosharecapital|-||
|Unappropriatedprofitattheendoftheyear|3,113,367,524.19||

Note1: Appropriation to statutory surplus reserve
According to theArticles ofAssociation, theCompany is required totransfer10% ofits
net profit to thestatutory surplusreserve.TheCompany can cease appropriation when the
statutory surplus reserve accumulated tomorethan50% oftheregister capital.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 38.Unappropriatedprofit-continued
Note2: Cash dividends approved byshareholders' meeting during theyear
Pursuant tothe resolution ofshareholders' meeting on06June 2016,onthebasis of 644,763,730issued shares fortheyear ended 31December 2015,dividends of RMB4.10(tax included) for every 10shares were distributed to all shareholders,which amounted to RMB264,353,129.30.
Note3: Profit distribution decided after thebalance sheet date
【According to theprofit appropriationproposal made at thefifth session ofthe eighth Board ofDirectors held on24March 2017,onthe basis of644,763,730issued shares as at 31December 2016,cash dividends ofRMB 319,802,810.08willbe distributedto all shareholders. The above proposal regarding dividends distribution is yet to beapproved at theshareholders'meeting.】
Note4: Appropriation to surplus reserve madebysubsidiaries
As of31December 2016,thebalance of theGroup's unappropriated profit included appropriationto surplus reserve madebysubsidiaries amounting toRMB587,698,230.64 (31December 2015: RMB575,268,020.18).
39.Operating income andoperating costs
Unit: RMB
||||||
|-|-|-|-|-|
|Item|2016||2015||
||Income|Cost|Income|Cost|
|Principaloperating|1,884,909,361.46|1,047,677,751.98|1,840,788,324.86|1,000,163,255.99|
|Otheroperating|20,197,778.96|2,788,128.53|31,820,271.30|2,552,653.06|
|Total|1,905,107,140.42|1,050,465,880.51|1,872,608,596.16|1,002,715,909.05|

 40.Business taxes and levies
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Proprtytax|4,266,897.33|-|
|Cityconstructionandmaintenancetax|1,462,163.29|1,800,731.44|
|Businesstax|1,225,050.81|3,802,842.35|
|Educationsurcharges|1,195,938.07|1,397,337.57|
|Others|2,622,182.84|551,670.30|
|Total|10,772,232.34|7,552,581.66|

 41.Administrativeexpenses
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Employeebenefits|137,429,131.62|124,464,078.55|
|Depreciationexpenses|3,136,175.98|2,899,129.23|
|Amortizationofintangibleassets|863,800.76|959,630.77|
|Taxes|5,733.66|6,920,658.40|
|Others|33,086,442.00|40,401,409.76|
|Total|174,521,284.02|175,644,906.71|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 42.Financialexpenses
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Interestexpense|34,896,767.00|64,226,460.89|
|Less:Capitalizedinterestexpenses|107,179.17|212,638.15|
|Less:Interestincome|5,554,585.47|5,227,584.31|
|Exchangedifferences|(15,725,987.44)|(4,002,853.28)|
|Others|3,513,600.55|4,717,455.41|
|Total|17,022,615.47|59,500,840.56|

 43.Impairmentlosses of assets
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|I.Baddebtlosses|4,689,573.88|(89,469.40)|
|II.Write-downofinventories|-|-|
|III.Impairmentonavailable-for-salefinancialassets|-|-|
|IV.Impairmentonheld-to-maturityinvestments|-|-|
|V.Impairmentonlong-termequityinvestments|-|-|
|VI.Impairmentoninvestmentproperties|-|-|
|VII.Impairmentonfixedassets|-|-|
|VIII.Impairmentonconstructionmaterials|-|-|
|IX.Impairmentonconstructioninprogress|-|-|
|X.Impairmentonbearerbiologicalassets|-|-|
|XI.Impairmentonoilandgasassets|-|-|
|XII.Impairmentonintangibleassets|-|-|
|XIII.Impairmentongoodwill|-|-|
|XIV.Others|-|-|
|Total|4,689,573.88|(89,469.40)|

 44.Investmentincome
(1) Details ofinvestment income
Unit: RMB
||||
|-|-|-|
||2016|2015|
|Long-termequityinvestmentsincomeunderequitymethod|114,191,687.57|95,337,543.13|
|Investmentincomeondisposaloflong-termequityinvestments|-|1,878,969.73|
|Investmentincomeonavailable-for-salefinancialassets|6,292,187.85|3,601,220.00|
|Total|120,483,875.42|100,817,732.86|

 (2) Details oflong-term equity investmentsincomeunder equity method
Unit: RMB
|||||
|-|-|-|-|
|Investee|2016|2015|Reasonsforincreasesordecreasesinthecurrentcomparedtothepriorperiod|
|MPIL|40,893,973.41|36,808,965.97|Netprofitofinvesteefluctuates.|
|COHA(Laizhou)|60,183,170.19|40,102,679.54|Netprofitofinvesteefluctuates.|
|CMBL|11,353,161.00|11,714,735.38|Netprofitofinvesteefluctuates.|
|ChinaDevelopmentFinanceCo.,Ltd("CDFC")|-|5,753,310.96|Disposedoflastyear.|
|ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd|1,761,382.97|957,851.28|Netprofitofinvesteefluctuates.|
|Total|114,191,687.57|95,337,543.13||

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENT -continued 45.Non-operating income
(1)Non-operating income
Unit: RMB
|||||
|-|-|-|-|
|Item|2016|2015|Amountrecognizedasnon-recurringgainandlossinthecurrentperiod|
|Governmentgrants|1,046,444.12|934,144.81|1,046,444.12|
|Gainsondisposalofnon-currentassets|325,644.31|460,800.55|325,644.31|
|Including:Gainsondisposaloffixedassets|144,996.31|138,896.35|144,996.31|
|Incomefrominsurancecompensation|1,421,480.12|-|1,421,480.12|
|Others|2,902,015.25|2,105,374.50|2,902,015.25|
|Total|5,695,583.80|3,500,319.86|5,695,583.80|

 (2)Government grants
Unit: RMB
|||||
|-|-|-|-|
|Item|2016|2015|Relatedtoassets/Relatedtoincome|
|Specialfundsforenergy-savingandemissionreductionoftransportation|360,000.00|443,333.34|Relatedtoassets|
|Subsidyforelectricbuses|216,666.68|-|Relatedtoassets|
|Rewardforenergysaving|200,000.04|50,000.00|Relatedtoassets|
|Specialfundsformodernlogisticsproject|166,956.48|166,956.42|Relatedtoassets|
|Specialfundsfordevelopmentofmodernservice|52,045.20|50,557.08|Relatedtoassets|
|Greencarbonharborthematicprojectssubsidygrantedbycentralgovernment|23,977.60|153,623.00|Relatedtoassets|
|Postsubsidiesforsocialsecuritypurpose|6,798.12|-|Relatedtoincome|
|Governmentgrantfornewenergyvehicles|20,000.00|-|Relatedtoincome|
|FinancialsupportfundsofbusinesstaxconvertedtoVAT|-|69,674.97|Relatedtoincome|
|Total|1,046,444.12|934,144.81||

46.Non-operating expenses
Unit: RMB
|||||
|-|-|-|-|
|Item|2016|2015|Amountrecognizedasnon-recurringgainandlossinthecurrentperiod|
|Totallossesondisposalofnon-currentassets|2,794,529.60|3,087,832.34|2,794,529.60|
|Including:Lossesondisposaloffixedassets|2,689,829.61|3,087,832.34|2,689,829.61|
|Donationscontributed|4,136.48|25,000.00|4,136.48|
|Amercementoutlay|7,882.00|29,283.10|7,882.00|
|Others|349,777.84|432,470.82|349,777.84|
|Total|3,156,325.92|3,574,586.26|3,156,325.92|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 47.Incometax expenses
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Currenttaxexpense|101,756,421.43|59,642,096.53|
|Deferredincometax|(947,437.65)|15,667,538.90|
|Total|100,808,983.78|75,309,635.43|

 Reconciliation ofincometax expenses to theaccounting profit isas follows:
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Accountingprofit|770,658,687.50|728,027,294.04|
|Incometaxexpensescalculatedat25%(theprioryear:25%)|192,664,671.88|182,006,823.51|
|Effectofexpensesthatarenotdeductiblefortaxpurposes|685,072.77|1,285,532.56|
|Effectoftax-freeincome|(29,238,273.30)|(22,690,590.01)|
|Effectofunrecognizeddeductiblelossesanddeductibletemporarydifferencesfortaxpurposes|3,200,218.92|11,127,264.72|
|Effectofdifferenttaxratesofsubsidiariesoperatinginotherjurisdictions|(126,475.90)|(43,101.79)|
|Effectoftaxpreferencepolicy|(68,128,374.42)|(97,170,907.89)|
|Withholdingincometax(Note)|4,109,138.17|2,656,001.37|
|Effectofpreviousunrecognizeddeductibletemporarydifferencesofdeferredincometax|-|(1,606,934.60)|
|Previousyearsincometaxrefund|(22,956.92)|44,720.38|
|Taxadjustmentsresultinchangesintheopeningdeferredtaxassets/liabilitiesbalance|(614,573.30)|(299,172.82)|
|Taxeffectofadditionaldeductionsof researchanddevelopmentexpenses|(1,719,464.12)|-|
|Incometaxexpenses|100,808,983.78|75,309,635.43|

 Note: Withholdingincome tax was accrued at the rateof5%or10%fordividend payable to Chiwan WharfHoldings (Hong Kong) Limited, declared bythosePRCsubsidiaries of which Chiwan Wharf Holdings (Hong Kong)Limited is ashareholder.
48.Othercomprehensiveincome
Pleaserefer to Note(V) 35.
49.Borrowingcost
Unit: RMB
||||||
|-|-|-|-|-|
|Item|2016||2015||
||Amountofborrowingcostscapitalizedduringtheyear|Capitalizationrate|Amountofborrowingcostscapitalizedduringtheyear|Capitalizationrate|
|Constructioninprogress|107,179.17|4.35%|212,638.15|4.83%|
|Borrowingcostscapitalizedduringtheyear|107,179.17||212,638.15||
|Borrowingcostsrecognizedinprofitorlossduringtheyear|34,789,587.83||64,013,822.74||
|Totalofborrowingcostsduringtheyear|34,896,767.00||64,226,460.89||

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 50.Notes to items inthecash flowstatement
(1)Other cash receiptsrelating to operating activities
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Interestincome|5,715,403.68|5,338,024.76|
|Governmentgrants|1,038,698.12|17,903,574.97|
|Insuranceindemnity|741,344.92|302,383.43|
|Refundsofharborconstructionfee|151,912.85|295,689.33|
|Tonggusea-routeexpenses|-|14,863,366.67|
|Refundsofriverchanneloccupationfee|-|12,175,000.00|
|Others|15,235,786.06|20,332,741.26|
|Total|22,883,145.63|71,210,780.42|

 (2)Other cash payments relating tooperating activities
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Portexpenses|10,418,259.98|10,025,373.33|
|Riverchanneloccupationfee|14,469,500.00|-|
|Portadministrationfee|5,178,148.40|-|
|Portconstructionfee|4,022,151.67|7,729,024.34|
|Officeexpenses&utilities|3,606,966.88|4,524,794.54|
|Consulting&auditing|3,352,281.61|3,990,837.59|
|Entertainment|2,565,851.48|3,705,397.30|
|Verhicles|2,062,078.92|3,192,347.97|
|Propertyinsurance|2,716,404.91|2,184,157.68|
|Travel&accommodation|1,216,221.72|1,603,128.66|
|Others|45,423,751.44|21,815,532.41|
|Total|95,031,617.01|58,770,593.82|

 (3)Other cash payments relating tofinancing activities
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Debtissuecosts|2,702,654.14|1,750,344.61|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 51.Supplementary information to thecash flowstatement
(1)Supplementary information to thecash flowstatement
Unit: RMB
||||
|-|-|-|
|Supplementary|2016|2015|
|1.Reconciliationofnetprofittocashflowsfromoperatingactivities:|||
|Netprofit|669,849,703.72|652,717,658.61|
|Add:Provisionforimpairmentlossesofassets|4,689,573.88|(89,469.40)|
|Depreciationoffixedassets|192,493,319.57|197,385,401.36|
|Depreciationandamortizationofinvestmentproperty|913,968.27|1,178,498.38|
|Amortizationofintangibleassets|37,673,273.86|39,465,290.29|
|Amortizationoflong-termprepaidexpenses|2,084,616.74|2,538,135.88|
|Lossesondisposaloffixedassets,intangibleassetsandotherlong-termassets|2,468,885.29|2,627,031.79|
|Financialexpenses|24,170,073.30|56,006,812.00|
|Losses(gains)arisingfrominvestments|(120,483,875.42)|(100,817,732.86)|
|Decrease(Increase)indeferredtaxassets|(947,437.65)|15,667,538.90|
|Decrease(Increase) ininventories|2,528,897.57|1,789,860.95|
|Decrease(Increase)inoperatingreceivables|4,343,445.89|42,943,949.50|
|Increase(Decrease)inoperatingpayables|7,970,459.09|66,437,762.05|
|Netcashflowsfromoperatingactivities|827,754,904.11|977,850,737.45|
|2.Significantinvestingandfinancingactivitiesthatdonotinvolvecashreceiptsandpayments:|||
|Conversionofdebtintocapital|-|-|
|Convertiblebondsduewithinoneyear|-|-|
|Fixedassetsacquiredunderfinanceleases|-|-|
|3.Netchangesincashandcashequivalents:|||
|Closingbalanceofcash|426,036,702.87|683,138,123.66|
|Less:Openingbalanceofcash|683,138,123.66|468,635,486.47|
|Add:Closingbalanceofcashequivalents|-|-|
|Less:Openingbalanceofcashequivalents|-|-|
|Netincrease(Decrease)incashandcashequivalents|(257,101,420.79)|214,502,637.19|

 (2) Composition ofcash and cash equivalents
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|I.Cash|426,036,702.87|683,138,123.66|
|Including:Cashonhand|28,943.84|28,647.92|
|Bankdeposits|425,934,063.55|682,656,283.17|
|Othermonetaryfunds|73,695.48|453,192.57|
|II.Cashequivalents|-|-|
|III.Closingbalanceofcashandcashequivalents|426,036,702.87|683,138,123.66|

 52.Assetwith restricted ownership oruseright
The Group has noassets withrestricted ownership oruse right.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(V) NOTESTOITEMSIN THECONSOLIDATEDFINANCIAL STATEMENTS -continued 53.Foreign currency monetary items
Unit: RMB
|||||
|-|-|-|-|
|Item|Closingbalanceoforiginalcurrency|Exchangerate|ClosingamountinRMB|
|Cashandbankbalances|||200,776,163.48|
|Including:HKD|28,551,257.87|0.8945|25,539,100.17|
|USD|25,261,217.14|6.9370|175,237,063.31|
|InterestReceivable||||
|Including:HKD||||
|AccountsReceivable|||26,385,131.19|
|Including:HKD|7,924,872.79|0.8945|7,088,798.71|
|USD|2,781,653.81|6.9370|19,296,332.48|
|OtherReceivables|||209,128.46|
|Including:HKD|150,446.55|0.8945|134,574.44|
|USD|10,747.30|6.9370|74,554.02|
|AccountsPayable|||2,418,046.35|
|Including:HKD|2,703,237.95|0.8945|2,418,046.35|
|OtherPayables|||(234,704.00)|
|Including:HKD|112,966.50|0.8945|101,048.53|
|USD|(48,400.25)|6.9370|(335,752.53)|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(VI) EQUITYINOTHER ENTITIES
1.Interests insubsidiaries
(1) Composition oftheGroup
Unit:RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Fullnameofthesubsidiary|Principal placeofbusiness|Placeofincorporation|Natureofbusiness|RegisteredCapital(intenthousandYuanunlessotherwisestated)|Actualcapitalcontributionattheendoftheperiod|Balanceofotheritemssubstantivelyconstitutingnetinvestmentsinthesubsidiary|ProportionofownershipInterest(%)||Proportionofvotingpower(%)|Consolidatedornot|Approachofacquiring|
||||||||Directownershipinterest|Indirectownershipinterest||||
|ShenzhenChiwanInternationalFreightAgencyCo.,Ltd|Shenzhen,PRC|Shenzhen,PRC|Logisticssupportservices|550.00|5,500,000.00|-|100.00|-|100.00|Y|Establishedthroughinvestment|
|ChiwanWharfHoldings(HongKong)Limited|HongKongSAR,PRC|HongKongSAR,PRC|Investment|HKD1,000,000.00|1,070,000.00|11,004,285.00|100.00|-|100.00|Y|Establishedthroughinvestment|
|DGW|Dongguan,PRC|Dongguan,PRC|Logisticssupportservices|45,000.00|382,500,000.00|-|85.00|-|85.00|Y|Establishedthroughinvestment|
|DGT|Dongguan,PRC|Dongguan,PRC|Logisticssupportservices|40,000.00|400,000,000.00|-|100.00|-|100.00|Y|Establishedthroughinvestment|
|HinwinDevelopmentLimited|HongKongSAR,PRC|HongKongSAR,PRC|Investment|HKD10,000.00|6,278,500.00|94,014,181.00|100.00|-|100.00|Y|Establishedthroughinvestment|
|CHCC|Shenzhen,PRC|Shenzhen,PRC|Logisticssupportservices|28,820.00|250,920,000.00|-|100.00|-|100.00|Y|Combinationinvolvingenterprisesundercommoncontrol|
|ShenzhenChiwanTransportationCo.,Ltd|Shenzhen,PRC|Shenzhen,PRC|Logisticssupportservices|1,500.00|7,000,000.00|-|100.00|-|100.00|Y|Combinationinvolvingenterprisesundercommoncontrol|
|CCT|Shenzhen,PRC|Shenzhen,PRC|Logisticssupportservices|USD95,300,000.00|485,990,004.00|-|55.00|-|55.00|Y|Combinationinvolvingenterprisesundercommoncontrol|
|ShenzhenChiwanTugboatCo.,Ltd|Shenzhen,PRC|Shenzhen,PRC|Logisticssupportservices|2,400.00|24,000,000.00|-|100.00|-|100.00|Y|Combinationinvolvingenterprisesundercommoncontrol|
|ChiwanShipping(HongKong)Limited|HongKongSAR,PRC|HongKongSAR,PRC|Logisticssupportservices|HKD800,000.00|856,000.00|-|100.00|-|100.00|Y|Combinationinvolvingenterprisesundercommoncontrol|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(VI) EQUITYINOTHER ENTITIES-continued
1.Interests insubsidiaries-continued
(2) Material non-wholly-owned subsidiaries
Unit:RMB
||||||
|-|-|-|-|-|
|Nameofthesubsidiary|Proportionofownershipinterestheldbytheminorityshareholders|Profitorlossattributabletominorityshareholdersattheendoftheperiod|Paymentsfordividendstominorityshareholdersinthecurrentperiod|Closingbalanceofminorityinterest|
|2016|||||
|DGW|15%|8,269,117.04|-|115,005,875.45|
|CCT|45%|129,204,093.71|95,677,829.00|812,172,308.08|
|Total||137,473,210.75|95,677,829.00|927,178,183.53|
|2015|||||
|DGW|15%|10,596,767.69|-|106,741,678.70|
|CCT|45%|114,369,398.50|215,249,531.83|682,968,214.37|
|Total||124,966,166.19|215,249,531.83|789,709,893.07|

 (3) Significant financial information of material non-wholly-owned subsidiaries
Unit:RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Nameofthesubsidiary|Closingbalance||||||Openingbalance||||||
||Currentassets|Non-currentassets|Totalassets|Currentliabilities|Non-currentliabilities|Totalliabilities|Currentassets|Non-currentassets|Totalassets|Currentliabilities|Non-currentliabilities|Totalliabilities|
|DGW|27,675,293.15|1,027,159,564.62|1,054,834,857.77|277,814,404.40|24,550,555.38|302,364,959.78|46,975,372.45|942,043,889.38|989,019,261.83|267,093,453.40|24,550,555.38|291,644,008.78|
|CCT|389,403,217.21|1,575,821,422.22|1,965,224,639.43|87,814,329.79|72,582,958.32|160,397,288.11|362,104,228.94|1,670,433,420.63|2,032,537,649.57|444,644,188.60|70,186,317.91|514,830,506.51|

 Unit:RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Nameofthesubsidiary|2016||||2015||||
||Operatingincome|Netprofit|Totalcomprehensiveincome|Cashflowsfromoperatingactivities|Operatingincome|Netprofit|Totalcomprehensiveincome|Cashflowsfromoperatingactivities|
|DGW|257,657,559.13|55,127,446.88|55,127,446.88|131,145,552.45|278,723,570.73|70,645,117.94|70,645,117.94|100,572,060.08|
|CCT|780,248,364.76|287,120,208.26|287,120,208.26|387,145,173.82|758,255,475.19|254,154,218.89|254,154,218.89|435,838,006.25|

(4)No entitiesare addedto thescope ofconsolidation in thecurrent year.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(VI) EQUITYINOTHER ENTITIES-continued
2.Interests injointventures andassociates
(1)Material jointventures orassociates
Unit:RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Investee|Principalplaceofbusiness|Placeofincorporation|Natureofbusiness|ProportionofownershipinterestsheldbytheGroup(%)||ProportionofvotingpowerintheinvesteeheldbytheGroup(%)||Accountingmethodofinvestmentsinjointventuresandassociates|
|||||31December2016|31December2015|31December2016|31December2015||
|COHA(Laizhou)|Laizhou|Laizhou|Warehousingandlogistics|40.00|40.00|40.00|40.00|Equitymethod|
|MPIL|Shenzhen|BritishVirgin Islands|Investments|50.00|50.00|50.00|50.00|Equitymethod|

 (2) Financial information ofmaterial jointventure
Unit: RMB
||||
|-|-|-|
||COHA(Laizhou)||
||Closingbalance/2016|Openingbalance/2015|
|Currentassets|472,412,233.11|454,129,237.15|
|Including:cashandcashequivalent|428,471,301.05|389,947,216.68|
|Non-currentassets|1,746,234,554.37|1,697,805,412.58|
|Totalassets|2,218,646,787.48|2,151,934,649.73|
|Currentliabilities|60,897,644.03|50,550,304.70|
|Non-currentliabilities|172,396,000.00|176,064,000.00|
|Totalliabilities|233,293,644.03|226,614,304.70|
|Minorityinterests|974,119.24|1,054,388.32|
|Totalequityattributabletoshareholdersoftheparentcompany|1,984,379,024.21|1,924,265,956.71|
|Netassetscalculatedbasedontheproportionofownershipinterest|793,751,609.68|769,706,382.68|
|Adjustments|||
|-Goodwill|-|-|
|-UnrealizedProfitsResultingfromIntragroupTransactions|-|-|
|-Others|1,229,696.54|1,223,942.38|
|CarryingamountsofequityinvestmentsinJointVenture|794,981,306.22|770,930,325.06|
|Operatingincome|363,088,369.45|288,944,609.42|
|Financialexpenses|(6,142,578.84)|(6,934,303.93)|
|Taxexpenses|24,846,767.07|19,852,555.25|
|Netprofit|150,392,274.39|100,216,183.27|
|Othercomprehensiveincome|-|-|
|Totalcomprehensiveincome|150,392,274.39|100,216,183.27|
|Dividendsreceivedfromjointventuresinthecurrentyear|36,132,189.03|30,785,676.52|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(VI) EQUITYINOTHER ENTITIES-continued
2.Interests injointventures andassociates -continued
(3) Financial information ofmaterial associates
Unit: RMB
||||
|-|-|-|
||MPIL||
||Closingbalance/2016|Openingbalance/2015|
|Currentassets|216,977,210.88|373,493,554.97|
|Including:cashandcashequivalent|116,043,096.52|103,374,072.06|
|Non-currentassets|1,274,297,269.88|1,367,177,697.91|
|Totalassets|1,491,274,480.76|1,740,671,252.88|
|Currentliabilities|299,257,041.62|405,113,685.76|
|Non-currentliabilities|4,031,799.53|167,056,518.57|
|Totalliabilities|303,288,841.15|572,170,204.33|
|Minorityinterests|452,668,593.90|441,275,007.08|
|Totalequityattributabletoshareholdersoftheparentcompany|735,317,045.71|727,226,041.47|
|Netassetscalculatedbasedontheproportionofownershipinterest|367,658,522.86|363,613,020.74|
|Adjustments|||
|-Goodwill|-|-|
|-UnrealizedProfitsResultingfromIntragroupTransactions|-|-|
|-Others|(26,739,280.23)|(27,015,292.25)|
|CarryingamountsofequityinvestmentsinJointVenture|340,919,242.63|336,597,728.49|
|Operatingincome|505,001,659.70|480,058,683.93|
|Financialexpenses|15,536,880.37|27,040,907.12|
|Taxexpenses|28,327,011.06|20,630,440.82|
|Netprofit|130,135,606.54|113,027,051.28|
|Othercomprehensiveincome|-|-|
|Totalcomprehensiveincome|130,135,606.54|113,027,051.28|
|Dividendsreceivedfromjointventuresinthecurrentyear|36,572,459.27|-|

 (4) Summarized financial information ofimmaterial associates
Unit: RMB
||||
|-|-|-|
||Closingbalance/2016|Openingbalance/2015|
|Associates:|||
|Totalcarryingamountsofinvestment|354,527,107.68|339,496,921.61|
|Aggregateoffollowingitemscalculatedbasedontheproportionofownershipinterest|||
|-Netprofit|13,114,543.97|12,672,586.66|
|-Othercomprehensiveincome|-|-|
|-Totalcomprehensiveincome|13,114,543.97|12,672,586.66|

(5) As at 31December 2016,thelong-term equity investments oftheGroup were not subject to
restriction ondisposalor remittance ofreturn oninvestments.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(VII) FINANCIAL INSTRUMENTSAND RISKMANAGEMENT
The Group's majorfinancial instruments includeCash and bankbalances, available-for-sale financial assets, borrowings, equity investments, account receivables, account payables, bond payables etc. Details ofthese financial instruments are disclosed in Note (V). The risks associated with thesefinancial instruments and the policiesonhow tomitigate these risks are set outbelow. Management manages and monitorstheseexposures to ensure therisks are monitored at a certain level.
TheGroup adopts sensitivity analysis techniques toanalyze howtheentity's profit orloss and for theperiod and shareholders' equity would have been affected bychanges in therelevant risk variables that were reasonably possible. As itis unlikely that risk variables willchange in an isolated manner, and theinterdependence between risk variables willhave significant effect on theamount ultimatelyinfluenced bythechanges ina single risk variable, thefollowing items are based onthe assumptionthat eachrisk variable has changes onastand-alone basis.
1.Riskmanagement objectives andpolicies
TheGroup's risk management objectives are to achieve proper balance between risksand yield, minimizethe adverse impacts ofrisks ontheGroup's operation performance, and maximize the benefitsof theshareholders and otherequity investors. Based onthese risk management objectives, theGroup's basicrisk management strategy is toidentify and analyze theindustry's exposureto various risks, establish appropriate bottomlinefor risk tolerance, implement risk management, and monitors theseexposures to ensure therisks are monitored at acertain level. 1.1Market risk
1.1.1Currencyrisk
Currency risk is therisk that losses willoccur because ofchanges in foreign exchange rates. The Group's exposureto thecurrency risk is primarily associated with USDand HKD. Several of the Group's subsidiaries havepurchases and sales denominated inHKD whilethe Group's other principal activities are denominated and settled inRMB. As at 31December 2016,thebalance of theGroup's assets and liabilities are both denominated infunctional currency, except that balance ofassets set out below isin HKD and USD. Currency risk arising from theforeign currency balance ofassets and liabilities may have impact ontheGroup's performance.
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Cashandbankbalances|200,776,163.48|272,754,190.87|
|-HKD|25,539,100.17|108,142,732.77|
|-USD|175,237,063.31|164,611,458.10|
|Accountsreceivable|26,594,259.65|18,884,797.75|
|-HKD|7,223,373.15|4,899,257.79|
|-USD|19,370,886.50|13,985,539.96|
|Short-termborrowings|-|141,610,178.37|
|-HKD|-|141,610,178.37|
|Accountspayable|2,183,342.35|2,177,189.75|
|-HKD|2,519,094.88|2,489,360.73|
|-USD|(335,752.53)|(312,170.98)|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(VII ) FINANCIAL INSTRUMENTSAND RISKMANAGEMENT -continued
1.Riskmanagement objectives andpolicies -continued
1.1Market risk-continued
1.1.1Currencyrisk- continued
TheGroup closely monitors theeffects of changes inthe foreign exchange rates ontheGroup's currency risk exposures, tominimizetheGroup's currency risk. According to thecurrent risk exposureand judgment oftheexchange rate movements, management considers theprobable heavy lossresulted from foreign exchange rate fluctuation tobe fairly low.
Sensitivityanalysis oncurrency risk
Theassumption forthe sensitivity analysis oncurrency risk is that all thecash flowhedges and hedges of anet investment in aforeign operation are highly effective. On thebasis of theabove assumption,where all othervariables are held constant, the reasonably possiblechanges inthe foreign exchange rate mayhave thefollowing pre-tax effect ontheprofit orloss forthe period or equity:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Changesinexchangerate|2016||2015||
|||Effectonprofits|Effectonshareholders'equity|Effectonprofits|Effectonshareholders'equity|
|Allforeigncurrencies|5%appreciationagainstRMB|11,259,354.04|11,259,354.04|7,392,581.02|7,392,581.02|
|Allforeigncurrencies|5%depreciationagainstRMB|(11,259,354.04)|(11,259,354.04)|(7,392,581.02)|(7,392,581.02)|

1.1.2Interest raterisk- changes in cashflows
Riskderived from changes incash flows offinancial instruments is mainlyrelated to bank loan withfloating interest rate. Details are disclosed inNote(V) 20.This Group takes themeasure of maintainingthe floating interest rate ofthebank loan, as a wayto reducetheinterest rate risk arising from changes in fair value.
Sensitivityanalysis ofinterest rate risk
Sensitivityanalysis ofinterest rate risk is based onthefollowingassumptions:
 Fluctuations ofmarket interest ratecan affect theinterest income orexpenseofa financial instrumentwith floating interest rate.
 For afinancial instrument at fair valuewith fixed interest rate, the fluctuations ofmarket interest rate can onlyaffect itsinterest incomeor expense.
 For aderivative financial instrument recognized as hedging instrument,the fluctuations of
market interest rate affects itsfair value and interest ratehedging estimationare effective
and efficient.
 Market interest rate at thebalance sheet date isadopted to calculate fair valuechanges of
derivative financial instrumentsand other financial assets andliabilities under discounted
cash flow method.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(VII) FINANCIAL INSTRUMENTSAND RISKMANAGEMENT -continued
1.Riskmanagement objectives andpolicies -continued
1.1Market risk-continued
1.1.2Interest raterisk- changes in cashflows -continued
Given that other variables unchanged onthebasis ofabove assumptions,the pre-tax effect onthe profit orloss forthe current period from possibleand reasonablechanges ofinterest rate are as follows:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Changesininterestrate|2016||2015||
|||Effectonprofits|Effectonshareholders'equity|Effectonprofits|Effectonshareholders'equity|
|Short-termborrowings|1%increase|-|-|(1,416,101.78)|(1,416,101.78)|
|Short-termborrowings|1%decrease|-|-|1,416,101.78|1,416,101.78|

 1.1.3Other price risk
Available-for-salefinancial assets are measured at fair value bytheGroup at thebalance sheet date. Hence theGroup takes risk ofchanges inthesecurities market. The Group closely monitors theeffects of changes in theforeign exchange prices ontheGroup's equity investment securities. TheGroup has not taken any measures toreduce prices risk ofequity investment securities. 1.2Creditrisk
As at 31 December 2016,theGroup's maximumexposuretocredit risk which willcause a financial losstotheGroup duetofailure to discharge an obligation bythecounterparties and financial guarantees issued bytheGroup is arising from thecarrying amount of therespective recognizedfinancial assets as stated in theconsolidated balance sheet. For financial instruments measured at fair value, thecarrying amount reflects theexposureto risks butnot themaximum exposureto risks;themaximum exposureto risks would varyaccording to thefuture changes in fair value.
In order to minimize thecredit risk, the Group has delegated a team responsiblefor determination ofcredit limits, credit approvals and other monitoringprocedures to ensure that follow-up action is taken to recoveroverdue debts. In addition, theGroup reviews therecoverable amount ofeach individualtrade debt at each balance sheet date toensure that adequate impairment losses are madefor irrecoverableamounts. In this regard, the management of theGroup considers that the Group's credit risk is significantly reduced.
Thecredit risk onliquidfunds is limited because thecounterparties are banks with high credit ratings.
TheGroup adopted necessary policies to makesure that all clients andcustomers are attributed
withmerit credit records.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(VII) FINANCIAL INSTRUMENTSAND RISKMANAGEMENT -continued
1.Riskmanagement objectives andpolicies -continued
1.3Liquidityrisk
In themanagement of theliquidityrisk, theGroup monitors andmaintains alevel ofcash and cash equivalents deemed adequate bythemanagement to finance theGroup's operations and mitigatethe effects of fluctuations incash flows. The management monitors theutilization of bank borrowings and ensures compliance withloan covenants.
Thefollowing is thematurity analysis forfinancial assets andfinancial liabilities held bythe Group which isbased onundiscounted remaining contractual obligations:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Carryingamount|Totalamount|Withinoneyear|1-5years|Morethan5years|
|Thenon-derivativefinancialassets||||||
|Cashandbankbalances|426,036,702.87|426,036,702.87|426,036,702.87|-|-|
|Notesreceivable|500,000.00|500,000.00|500,000.00|-|-|
|Accountsreceivable|173,934,496.63|173,934,496.63|173,934,496.63|-|-|
|Otherreceivables|26,647,869.01|26,647,869.01|26,647,869.01|-|-|
|Available-for-salefinancialassets|22,459,200.00|22,459,200.00|22,459,200.00|-|-|
|Thenon-derivativefinancialliabilities||||||
|Accountspayable|89,444,597.10|89,444,597.10|89,444,597.10|-|-|
|Interestpayable|2,567,260.28|2,567,260.28|2,567,260.28|||
|Otherpayable|74,590,394.09|74,590,394.09|74,590,394.09|-|-|
|Othercurrentliabilities|250,000,000.00|254,311,780.82|254,311,780.82|-|-|
|Bondspayable|298,331,506.85|324,777,123.29|8,910,000.00|315,867,123.29|-|

 (VIII) FAIRVALUE
1.Closingbalance ofassets and liabilities measured atfairvalue
Unit:RMB
||||||
|-|-|-|-|-|
|Item|ClosingBalance||||
||Level1|Level2|Level3|Total|
|Measurementsatfairvaluecontinuously|||||
|Available-for-salefinancialassets:|8,550,000.00|-|-|8,550,000.00|
|-Equityinstruments(Note)|8,550,000.00|-|-|8,550,000.00|
|Totalassetsmeasuredatfairvaluecontinuously|8,550,000.00|-|-|8,550,000.00|

 Note: Theavailable-for-sale financial assets held bythe Companyrepresent thefair valueofthe circulating shares ofJiang Su Ninghu Expressway Co., Ltd at theendof theyear. 2.Basisfordeterminingthemarket price measured atfairvalueatlevel Icontinuously
Themarket price ofassets and liabilities measured at fair value at level Icontinuously is
determined bytheShanghai stock exchangeclosing price of equity instrumentsat 31December
2016.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(VIII) FAIRVALUE -continued
3.Information offinancialassets andfinancialliabilities thatare notmeasured atfairvalue Themanagement considers that thecarrying amount offinancial assets and liabilities measured at amortized cost isapproximately equal tothe fairvalue offinancial assets and liabilities. (IX) RELATEDPARTYRELATIONSHIPS AND TRANSACTIONS
1.Parent oftheCompany
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Nameoftheparent|Relatedpartyrelationship|Typeoftheentity|Placeofincorporation|Legalrepresentative|Natureofbusiness|Issuedsharecapital|Proportionoftheentity'sownershipinterestsheldbytheparent(%)|Proportionoftheentity'svotingpowerheldbytheparent(%)|
|CMPH|Parentcompany|ListedinHongKong|HongKong|LiJianHong|Portshipping|HKD18,991,699,462|-|66.10(Note)|

Note: CMPHobtained8.58%equity oftheCompany via itssubsidiary Jing Feng Company,25% equityvia itssubsidiaries Shenzhen Malai Warehouse Co.,Ltd.("Malai Warehouse"), and obtained another32.52%equity byentrustment ofNanshan Group's stock, totallyholding66.10%ofthevoting shares, so CMPHis theparent company of theCompany.
2.Subsidiaries ofthe Company
Thegeneral background and otherrelated information of thesubsidiaries are set out in Note(VI) 1.
3.Associates andjointventures of theCompany
Thegeneral background and otherrelated information of thesignificant associates and joint ventures are set out inNote (VI) 2.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(IX) RELATEDPARTYRELATIONSHIPS AND TRANSACTIONS- continued
4.Otherrelated parties oftheCompany
|||
|-|-|
|Nameofotherrelatedparties|RelationshipsbetweenotherrelatedpartiesandtheCompany|
|ShenzhenHaiqinEngineeringManagementCo.,Ltd.(HaiqinEngineering)|Controlledbythesameparentcompany|
|SMT|Controlledbythesameparentcompany|
|SMP|Controlledbythesameparentcompany|
|ChinaMerchantsPortServices(Shenzhen)Co.,Ltd("CMPS")|Controlledbythesameparentcompany|
|ShekouContainerTerminalsLimited("SCT")|Controlledbythesameparentcompany|
|ShenzhenHaixingHarborDevelopmentCo.,Ltd("Haixing")|Controlledbythesameparentcompany|
|ShenzhenHuxingTugServiceCo.,Ltd.("HuxingTug")|Controlledbythesameparentcompany|
|ShenzhenLiandaTug ServiceCo.,Ltd.("LiandaTug")|Controlledbythesameparentcompany|
|MalaiWarehouse|Controlledbythesameparentcompany|
|ChinaMerchantsContainerServicesLtd.("ChinaMerchantsContainer")|Controlledbythesameparentcompany|
|SMW|Controlledbythesameparentcompany|
|Hidoney|Controlledbythesameparentcompany|
|ShenzhenChinaMerchantsQianhaiwanPropertyCo.,Ltd.("QianhaiProperty")|Controlledbythesameparentcompany|
|ChinaMerchantsInternationalColdChain(Shenzhen)Co.,Ltd("CMCCL")|Controlledbythesameultimateactualcontroller|
|OceanShippingAgency|Controlledbythesameultimateactualcontroller|
|ShenzhenChinaMerchantsShangzhiInvestmentCo.,Ltd.("ChinaMerchantsShangzhi")|Controlledbythesameultimateactualcontroller|
|ShenzhenChinaMerchantsInternationalShippingAgencyCo.,Ltd.("ShippingAgency")|Controlledbythesameultimateactualcontroller|
|YoulianShipyard(Shekou)Co.Ltd.("YoulianShipyard")|Controlledbythesameultimateactualcontroller|
|ShenzhenChinaMerchantsPropertyManagementCo.,Ltd.("ChinaMerchantsProperty")|Controlledbythesameultimateactualcontroller|
|GuangzhouInternationalOceanShippingAgencyCo.,Ltd. ("InternationalOceanShipping")|Controlledbythesameultimateactualcontroller|
|ChinaOceanShippingTallyShenzhenCo.,Ltd.("OceanShippingTally")|Controlledbythesameultimateactualcontroller|
|ChinaMerchantsHoulderInsuranceCo.,Ltd.("HoulderInsurance")|Controlledbythesameultimateactualcontroller|
|HoiTung(Shanghai)Co.,Ltd.|Controlledbythesameultimateactualcontroller|
|HoiTung(Shenzhen)Co.,Ltd.|Controlledbythesameultimateactualcontroller|
|SheanzhenSouthChinaLiquefiedGasMarineCo.,Ltd.(SouthChinaLiquefiedGas)|Controlledbythesameultimateactualcontroller|
|ChinaMarineShippingAgency,ShenzhenCo.,Ltd.("CMSA")(Note)|Controlledbythesameultimateactualcontroller|
|SinowayShippingLtd.("Sinoway")(Note)|Controlledbythesameultimateactualcontroller|
|ChinaMerchantsHeavyIndustryShenzhenCo.,Ltd.("CMHI")|Controlledbythesameultimateactualcontroller|
|ShenzhenChiwanPetroleumSupplyBaseCo.,Ltd.("ChiwanBase")|Influencedsignificantlybyparentcompany|
|ZengchengXinkangpropertyCo.,Ltd.("ZengchengXinkang")|Influencedsignificantlybyparentcompany|
|ShenzhenBaowaninternationallogisticsCo.,Ltd.("BaowanLogistics")|Influencedsignificantlybyparentcompany|
|ShenzhenChiwanPropertyManagementCo.,Ltd.("ChiwanProperty")|Influencedsignificantlybyparentcompany|
|ShenzhenXuqinIndustrialDevelopmentCo.,Ltd.(“Xuqin”)|Influencedsignificantlybyparentcompany|
|ShenzhenChiwanOrientalLogisticsCo.,Ltd.("ChiwanOrientalLogistics")|Influencedsignificantlybyparentcompany|
|CDFC|Influencedsignificantlybyparentcompany|
|NanshanGroup|Invetsorthathassignificantinfluenceonthecompany|
|ChinaMerchantBankCo.,Ltd.("CMB")|Influencedsignificantlybytheultimateactualcontroller|

Note: On 28December 2015,State-owned Assets Supervision andAdministration
Commission("SASAC") released an approval totransferSinotrans&CSCHoldings Co., Ltd.("Sinotrans& CSC"), as a whole, into ChinaMerchants Group Co., Ltd .("CMG") for free. On 24Februrary 2016,SASAC confirmed that CMGisthecontroller shareholderof
Sinotrans& CSC.Therefore, the Companyincluded the subsidiariesofSinotrans& SCS,
CMSAand Sinoway as itsrelated parties since24February 2016.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(IX) RELATEDPARTYRELATIONSHIPS AND TRANSACTIONS- continued
5.Relatedparty transactions
(1) Provisionand receipt ofservices
Unit: RMB
||||||
|-|-|-|-|-|
|Relatedparties|Contentofrelatedpartytransaction|Pricinganddecision-makingproceduresofrelatedpartytransactions|2016|2015|
|Receiptofservices:|||||
|Haixing|Loadandunloadservice|Negotiation|4,697,099.06|5,250,938.99|
|CMSA|Platformusefee|Negotiation|3,691,752.00|N/A|
|ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd|Technicalservicefee|Negotiation|2,685,201.86|3,593,871.23|
|ChiwanProperty|Propertymanagementservice|Negotiation|2,080,632.12|2,110,798.96|
|Xuqin|LandscapeEngineering|Negotiation|1,424,421.04|2,737,278.57|
|HaiqinEngineering|Projectmanagement|Negotiation|1,320,737.69|531,551.64|
|SMT|Loadandunloadservice|Negotiation|1,010,880.00|68,340.00|
|ZengchengXinkang|Propertymanagementservice|Negotiation|784,798.07|683,731.80|
|OceanShippingAgency|Agencyservice|Negotiation|576,990.00|313,335.00|
|SMW|Loadandunloadservice|Negotiation|593,207.56|197,805.66|
|LiandaTug|Tugboatservice|Negotiation|503,943.87|555,742.69|
|HoiTung(Shanghai)Co.,Ltd.|Purchaseofgoods|Negotiation|498,199.64|534,873.63|
|ChinaMerchantsProperty|Propertymanagementservice|Negotiation|186,930.84|149,222.12|
|SCT|Loadandunloadservice|Negotiation|171,547.76|-|
|SMP|Loadandunloadservice|Negotiation|138,420.00|-|
|CMBL|Loadandunloadservice|Negotiation|35,377.36|2,033,893.83|
|HoiTung(Shenzhen)Co.,Ltd.|Purchaseofgoods|Negotiation|-|854,700.86|
|ChinaMerchantsContainer|Transportationservices|Negotiation|-|702,070.57|
|HoulderInsurance|Insuranceservice|Negotiation|-|80,000.00|
|ChiwanOrientalLogistics|Transportationservices|Negotiation|-|27,117.11|
|HuxingTug|Tugboatservice|Negotiation|-|11,686.42|
|ShippingAgency|Agencyservice|Negotiation|-|4,925.51|
|Total|||20,400,138.87|20,441,884.59|
|Renderingofservices:|||||
|SCT|Trailerserviceetc.|Negotiation|14,561,689.56|12,103,589.48|
|OceanShippingAgency|Tugboatservice|Negotiation|14,360,875.75|9,606,798.58|
|SMT|Trailerserviceetc.|Negotiation|13,072,813.13|13,661,628.99|
|SMP|Tugboatservice|Negotiation|6,014,324.79|9,397,633.97|
|CMSA|Tugserviceetc.|Negotiation|4,283,663.48|N/A|
|ShippingAgency|Trailerserviceetc.|Negotiation|2,460,519.24|2,502,690.16|
|COHA(Laizhou)|Labordispatchservice|Negotiation|1,495,994.08|561,543.76|
|InternationalOceanShipping|Berthagefee|Negotiation|952,187.92|775,267.91|
|LiandaTug|Tugboatservice|Negotiation|515,908.65|1,124,381.62|
|YoulianShipyard|Tugboatservice|Negotiation|420,190.56|433,459.86|
|CMCCL|Trailerservice|Negotiation|168,481.13|314,316.43|
|CMBL|Trailerservice|Negotiation|95,003.78|754,800.96|
|Sinoway|Loadingandunloadingincome|Negotiation|75,836.09|N/A|
|CMHI|Tugservice|Negotiation|72,073.58|-|
|ZengchengXinkang|Others|Negotiation|7,948.40|8,883.91|
|Xuqin|Loadandunloadservice|Negotiation|4,872.68|6,762.24|
|OceanShippingTally|Others|Negotiation|-|65,580.00|
|HuxingTug|Tugboatservice|Negotiation|-|45,788.21|
|SouthChinaLiquefiedGas|Tugboatservice|Negotiation|-|43,981.13|
|Total|||58,562,382.82|51,407,107.21|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(IX) RELATEDPARTYRELATIONSHIPS AND TRANSACTIONS- continued
5.Relatedparty transactions -continued
(2) Leases with related parties
TheGroup as thelessor:
Unit: RMB
|||||
|-|-|-|-|
|Nameoflessee|Typeofleasedassets|Leaseincomerecognisedinthecurrentyear|Leaseincomerecognisedinthepreviousyear|
|CMBL|Crane|1,882,718.48|1,864,077.72|
|OceanShippingTally|Officerenting|58,167.53|-|
|ShippingAgency|Officerenting|5,951.88|-|
|ChiwanBase|Coastalline,packingyards,roadlighting,etc,|-|11,208,750.00|
|Total||1,946,837.89|13,072,827.72|

 TheGroup as thelessee:
Unit: RMB
|||||
|-|-|-|-|
|Nameoflessor|Typeofleasedassets|Leasepaymentrecognisedinthecurrentyear|Leasepaymentrecognisedinthepreviousyear|
|NanshanGroup|Land,Officeandpackingyard|61,655,931.48|61,599,405.12|
|MalaiWarehouse|Office|4,879,713.88|7,195,527.00|
|ChiwanBase|Office|4,104,644.97|1,523,364.72|
|CMPS|FormerBayportlands|3,169,800.00|3,169,800.00|
|SMW|Rental|899,311.39|-|
|ChinaMerchantsShangzhi|Buildings|859,832.64|830,980.80|
|SCT|Crane|621,580.55|1,399,057.46|
|QianhaiProperty|Staffdormitory|144,147.73|271,994.50|
|BaowanLogistics|Warehouse|99,460.54|103,775.41|
|Total||76,434,423.18|76,093,905.01|

 (3) Transfers of assets involved with related parties
Unit: RMB
|||||
|-|-|-|-|
|relatedparty|Relatedtrade|2016|2015|
|SMW|Machineryandequipmenttransfer-out|1,176,271.66|-|
|Haixing|Machineryandequipmenttransfer-in|128,000.00|-|
|SMW|Transferoftransportequipment|-|101,600.00|

 (4) Compensationfor keymanagement personnel
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Compensationforkeymanagementpersonnel|10,788,235.12|8,355,047.60|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(IX) RELATEDPARTYRELATIONSHIPS AND TRANSACTIONS- continued
6. Amounts duefrom/to related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Relatedparties|Closingbalance|Openingbalance|
|Cashandbank|CMB|244,449,550.95|168,955,890.49|
||CDFC|1,211,887.57|55,649,145.28|
||Total|245,661,438.52|224,605,035.77|
|Accountsreceivable|OceanShippingAgency|2,138,014.00|1,608,650.60|
||SMT|1,097,931.17|1,500,641.58|
||CMSA|568,815.80|N/A|
||ShippingAgency|390,704.00|116,172.00|
||SMP|278,192.54|1,114,816.72|
||SCT|29,340.00|2,379,795.00|
||Sinoway|24,588.00|N/A|
||ChiwanBase|-|5,113,500.00|
||COHA(Laizhou)|-|535,207.20|
||Others|-|49,651.00|
||Total|4,527,585.51|12,418,434.10|
|Otherreceivables|CMBL|2,437,813.73|1,868,304.61|
||SMP|1,366,290.52|985,340.31|
||NanshanGroup|1,054,300.09|1,054,300.09|
||SMT|870,864.34|1,934,775.73|
||QianhaiProperty|654,480.00|654,480.00|
||Xuqin|323,000.00|323,000.00|
||ChinaMerchantsShangzhi|176,299.20|240,263.20|
||ChiwanBase|135,621.91|135,621.91|
||SCT|16,994.00|1,245,976.00|
||ChinaMerchantsProperty|5,294.00|5,294.00|
||Haixing|-|311,494.00|
||CMPS|-|311,494.00|
||Others|62,809.00|56,869.00|
||Total|7,103,766.79|9,127,212.85|
|Accountspayable|NanshanGroup|10,090,213.25|20,710,081.71|
||Xuqin|793,251.50|2,224,268.57|
||CMSA|743,962.71|N/A|
||Haixing|575,625.00|343,405.00|
||ZengchengXinkang|207,845.50|150,810.50|
||HoiTung(Shanghai)Co.,Ltd.|188,945.00|192,593.29|
||CMPH|99,675.65|-|
||SCT|-|60,000.00|
||SMT|-|28,747.20|
||Total|12,699,518.61|23,709,906.27|
|Dividendspayable|Hidoney|-|38,248,386.76|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(IX) RELATEDPARTYRELATIONSHIPS AND TRANSACTIONS- continued
6. Amounts duefrom/to related parties -continued
Unit: RMB
|||||
|-|-|-|-|
|Item|Relatedparties|Closingbalance|Openingbalance|
|Otherpayables|SMT|5,173,198.89|704,405.12|
||SMP|647,066.08|362,861.51|
||HaiqinEngineering|389,509.73|88,977.03|
||SCT|247,360.66|470,047.59|
||NanshanGroup|155,593.03|111,991.70|
||ChinaMerchantsShangzhi|117,532.80|-|
||Xuqin|51,624.65|11,500.00|
||ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd.|42,900.00|508,921.00|
||ChiwanProperty|14,100.90|-|
||InternationalOceanShipping|10,000.00|10,000.00|
||ChinaMerchantsProperty|3,626.34|1,464.12|
||HoiTung(Shenzhen)Co.,Ltd.|-|1,000,000.00|
||CMBL|-|67,080.00|
||CMPH|-|27,194.56|
||Total|6,852,513.08|3,364,442.63|

 (X) COMMITMENTS ANDCONTINGENCIES
1.Significantcommitments
(1) Capital commitments
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Capitalcommitmentsthathavebeenenteredintobuthavenotbeenrecognisedinthefinancialstatements:|||
|-Commitmentforacquisitionoflong-termassets|151,991,708.93|25,429,546.67|
|-Commitmentonexternalinvestment|56,136,194.00|-|
|Total|208,127,902.93|25,429,546.67|

 (2)Operating lease commitments
As ofthebalance sheet date, theGroup had thefollowing commitments in respect ofnon- cancellable operating leases:
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Minimumleasepaymentsundernon-cancellableoperatingleases:|||
|1styearsubsequenttothebalancesheetdate|58,325,261.82|3,285,372.56|
|2ndyearsubsequenttothebalancesheetdate|54,599,108.85|599,468.69|
|3rdyearsubsequenttothebalancesheetdate|656,227.25|389,421.36|
|Morethan3years|-|742,712.59|
|Total|113,580,597.92|5,016,975.20|

2.Contingencies
No material contingencies thatshould bedisclosed bythe Group.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XI) EVENTSAFTERTHEBALANCE SHEET
1.【Profitappropriation】
Unit: RMB
|||
|-|-|
|Item|Amount|
|Proposeddistributionofprofitsordividends(Note)|319,802,810.08|
|Profitsordividendsdeclaredtobedistributed|TobeapprovedbyGeneralmeetingofshareholders|

 Note: Pleaserefer to Note(V) 38.
(XII) OTHERSIGNIFICANT EVENTS
1. Annuity plan
On 3June2008,theGroup participated intheenterpriseannuity planof Nanshan Group approved byShenzhen government. Funds involved were deposited in themanaged account coordinated by Nanshan Group. Staffs would be qualified to participant theannuity planifthefollowing requirements are met:
(i)Staff withlabor contracts signed. (ii)Staffwith basic pension participated in. (iii)On-thejob and in-service staff with probation expired.(iv)Voluntarily participated intheplan and perform the obligation of payment. TheGroup andstaffs share thepayment of thesupplementary pension. Excesspayment would not beallowed so as tokeep the payment madebythe Group and total payment made bytheGroup and theindividualunder thelimitofone-twelfth and theone-sixthof theprioryear's gross payroll respectively.
2. Segmentreporting
(1)Basis for determining andaccounting treatments ofreporting segments
Subject tothe Group's in-house infrastructure, management requirements and internal reporting system, the operation businesses oftheGroup are classified into fourbusiness segments. The Group's management periodically evaluates theoperatingresults ofthesesegments tomake decisions about resources to beallocated tothe segments andassess theirperformance. Onthe basis ofsuch business segments, the Group determined three reporting segments includingload and unload services, trailer and tugboat business,agency services and othersegments, which are classified based onthenature ofbusiness. Major products and services delivered orprovided by eachofthereporting segments are load and unloadservices, trailer andtugboat business, agency services and other segments.
Segment information is disclosed inaccordance with theaccounting policies and measurement standards adopted byeach segment when reporting tomanagement. The measurement basis is consistent withthe accounting and measurement basis in thepreparation of thefinancial statements.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XII) OTHERSIGNIFICANT EVENTS-continued
2.Segment reporting -continued
(2)Segment financial information
Unit:RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Loadandunloadservices||Trailerandtugboatbusiness||Agencyandotherservices||Unappropriateditems||Inter-segmentdeduction||Total||
||2016|2015|2016|2015|2016|2015|2016|2015|2016|2015|2016|2015|
|Operatingincome|1,782,343,936.83|1,747,972,945.00|158,782,168.60|158,969,818.91|29,384,718.03|25,708,043.32|-|-|(65,403,683.04)|(60,042,211.07)|1,905,107,140.42|1,872,608,596.16|
|Revenuearisingfromexternaltransactions|1,779,272,172.37|1,747,810,379.34|96,580,829.78|100,524,805.89|29,254,138.27|24,273,410.93|-|-|-|-|1,905,107,140.42|1,872,608,596.16|
|Revenuearisingfrominter-segmenttransactions|3,071,764.46|162,565.66|62,201,338.82|58,445,013.02|130,579.76|1,434,632.39|-|-|(65,403,683.04)|(60,042,211.07)|-|-|
|Totalsegmentoperatingincome|1,782,343,936.83|1,747,972,945.00|158,782,168.60|158,969,818.91|29,384,718.03|25,708,043.32|-|-|(65,403,683.04)|(60,042,211.07)|1,905,107,140.42|1,872,608,596.16|
|Reconcilingitems:|||||||||||||
|OperatingIncomeinthefinancialstatements|||||||||||1,905,107,140.42|1,872,608,596.16|
|Operatingcost|976,831,006.93|930,887,674.04|119,894,587.11|118,198,934.43|19,108,936.15|13,671,511.65|-|-|(65,368,649.68)|(60,042,211.07)|1,050,465,880.51|1,002,715,909.05|
|Segmentoperatingprofits|805,512,929.90|817,085,270.96|38,887,581.49|40,770,884.48|10,275,781.88|12,036,531.67|-|-|(35,033.36)|-|854,641,259.91|869,892,687.11|
|Reconcilingitems:|||||||||||||
|Businesstaxesandsurcharges|8,593,274.58|5,025,061.87|291,541.06|173,686.91|841,236.94|2,353,832.88|-|-|1,046,179.76|-|10,772,232.34|7,552,581.66|
|Administrativeexpenses|124,511,443.64|126,052,506.42|12,744,154.28|12,176,192.51|6,195,758.39|6,622,851.39|31,104,961.07|30,793,356.39|(35,033.36)|-|174,521,284.02|175,644,906.71|
|Financialexpenses|(2,683,344.67)|31,337,452.90|(1,573,432.76)|(1,276,595.12)|(1,096,936.54)|(451,057.55)|23,422,509.20|29,891,040.33|(1,046,179.76)|-|17,022,615.47|59,500,840.56|
|Impairmentlossesofassets|4,500,706.29|(189,100.49)|188,867.59|99,631.09|-|-|-|-|-|-|4,689,573.88|(89,469.40)|
|InvestmentIncome|-|-|-|-|-|-|650,399,885.73|643,131,167.80|(529,916,010.31)|(542,313,434.94)|120,483,875.42|100,817,732.86|
|Operatingprofit|670,590,850.06|654,859,350.26|27,236,451.32|29,597,969.09|4,335,723.09|3,510,904.95|595,872,415.46|582,446,771.08|(529,916,010.31)|(542,313,434.94)|768,119,429.62|728,101,560.44|
|Non-operatingincome|3,748,438.75|3,029,421.88|1,904,840.62|150,470.75|42,304.43|320,427.23|-|-|-|-|5,695,583.80|3,500,319.86|
|Non-operatingexpenses|2,980,376.93|3,061,272.21|140,907.96|401,448.62|35,041.03|111,865.43|-|-|-|-|3,156,325.92|3,574,586.26|
|Grossprofit|671,358,911.88|654,827,499.93|29,000,383.98|29,346,991.22|4,342,986.49|3,719,466.75|595,872,415.46|582,446,771.08|(529,916,010.31)|(542,313,434.94)|770,658,687.50|728,027,294.04|
|Incometaxexpenses|89,054,315.93|64,894,793.15|7,290,125.68|7,381,628.04|355,404.00|377,212.87|4,109,138.17|2,656,001.37|-||100,808,983.78|75,309,635.43|
|Netprofit|582,304,595.95|589,932,706.78|21,710,258.30|21,965,363.18|3,987,582.49|3,342,253.88|591,763,277.29|579,790,769.71|(529,916,010.31)|(542,313,434.94)|669,849,703.72|652,717,658.61|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XII) OTHERSIGNIFICANT EVENTS-continued
2.Segment reporting -continued
(2) Segment financial information -continued
Unit:RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Loadandunloadservices||Trailerandtugboatbusiness||Agencyandotherservices||Unappropriateditems||Inter-segmentdeduction||Total||
||2016|2015|2016|2015|2016|2015|2016|2015|2016|2015|2016|2015|
|Totalsegmentassets|5,420,847,740.96|5,381,327,550.98|220,696,382.06|221,421,640.98|33,145,715.78|36,860,916.07|7,001,692,433.36|7,564,266,067.68|(6,055,905,562.37)|(6,290,103,298.72)|6,620,476,709.79|6,913,772,876.99|
|Totalassetsinthefinancialstatements|5,420,847,740.96|5,381,327,550.98|220,696,382.06|221,421,640.98|33,145,715.78|36,860,916.07|7,001,692,433.36|7,564,266,067.68|(6,055,905,562.37)|(6,290,103,298.72)|6,620,476,709.79|6,913,772,876.99|
|Totalsegmentliabilities|1,287,022,232.16|1,694,385,386.50|136,039,580.05|136,764,838.97|23,856,538.93|27,602,514.14|926,751,588.43|1,802,530,453.59|(1,390,186,966.20)|(1,976,820,746.33)|983,482,973.37|1,684,462,446.87|
|Totalliabilitiesinthefinancialstatements|1,287,022,232.16|1,694,385,386.50|136,039,580.05|136,764,838.97|23,856,538.93|27,602,514.14|926,751,588.43|1,802,530,453.59|(1,390,186,966.20)|(1,976,820,746.33)|983,482,973.37|1,684,462,446.87|
|Supplementaryinformation|||||||||||||
|Depreciation|170,034,292.39|172,445,076.14|11,673,804.16|11,429,783.53|47,541.30|87,975.88|11,651,649.99|14,601,064.19|-|-|193,407,287.84|198,563,899.74|
|Amortization|39,463,601.5|41,695,890.13|17,496.30|307,536.04|276,792.75|-|-|-|-|-|39,757,890.60|42,003,426.17|
|Interestincome|12,425,426.84|8,846,137.76|1,574,476.16|1,344,086.28|567,456.25|158,571.71|31,188,838.91|42,708,036.66|(40,201,612.69)|(47,829,248.10)|5,554,585.47|5,227,584.31|
|Interestexpense|28,894,711.66|39,645,349.49|-|65,254.86|-|-|47,142,668.62|72,132,466.49|(41,247,792.45)|(47,829,248.10)|34,789,587.83|64,013,822.74|
|Investmentincomefromlong-termequityinvestmentunderequitymethod|-|-|-|-|-|-|114,191,687.57|95,337,543.13|-|-|114,191,687.57|95,337,543.13|
|Long-termequityinvestmentunderequitymethod|-|-|-|-|-|-|1,490,427,656.53|1,447,024,975.16|-|-|1,490,427,656.53|1,447,024,975.16|
|Non-currentassetsotherthanlong-termequityinvestment|4,286,827,890.15|4,349,568,017.17|114,168,681.90|126,029,974.90|13,699,499.49|16,492,521.44|175,916,227.44|175,301,933.69|(156,606,653.68)|(157,909,567.98)|4,434,005,645.30|4,509,482,879.22|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XII) OTHERSIGNIFICANT EVENTS-continued
2.Segment reporting–continued
(3)Segment revenue from external transactions bysource and non-current assets bygeographical location
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Revenuefromexternaltransactionswithdomesticcustomers|1,886,725,592.26|1,855,423,240.72|
|RevenuefromexternaltransactionswithHongKongcustomers|18,381,548.16|17,185,355.44|
|Total|1,905,107,140.42|1,872,608,596.16|

 Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Non-currentassetssourcedfrom MainlandofPRC|4,433,998,794.69|4,509,466,040.28|
|Non-currentassetssourcedfromHongKong|6,850.61|16,838.94|
|Total|4,434,005,645.30|4,509,482,879.22|

 (4)Degree ofrelianceonmajor customers
Thetotal operating incomederived from thetop five clients oftheGroup is
RMB1,053,730,861.13,occupying55.31%oftheGroup's totaloperating income.
(XIII) NOTESTOTHE KEYITEMSINTHECOMPANY’S FINANCIAL STATEMENTS 1.Accounts receivable
(1) Disclosureof accounts receivablebycategories
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Closingbalance|||||Openingbalance|||||
||Carryingamountbalance||Baddebtprovision||Carryingvalue|Carryingamountbalance||Baddebtprovision||Carryingvalue|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Accountsreceivablethatareindividuallysignificantandforwhichbaddebtprovisionhasbeenassessedindividually(Note1)|-|-|-|-|-|-|-|-|-|-|
|Accountsreceivableforwhichbaddebtprovisionhasbeenassessedbycreditriskportfolios|||||||||||
|Portfolio1|63,999.00|0.43|-|-|63,999.00|5,648,707.20|28.12|-|-|5,648,707.20|
|Portfolio2|14,666,413.29|99.57|-|-|14,666,413.29|14,436,075.12|71.88|-|-|14,436,075.12|
|Subtotalofportfolios|14,730,412.29|100.00|-|-|14,730,412.29|20,084,782.32|100.00|-|-|20,084,782.32|
|Accountsreceivablethatarenotindividuallysignificantbutforwhichbaddebtprovisionhasbeenassessedindividually|-|-|-|-|-|-|-|-|-|-|
|Total|14,730,412.29|100.00|-|-|14,730,412.29|20,084,782.32|100.00|-|-|20,084,782.32|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XIII) NOTESTOTHE KEYITEMSINTHECOMPANY’S FINANCIAL STATEMENTS - continued
1.Accounts receivable- continued
(1)Disclosure ofaccounts receivable bycategories - continued
Accounts receivable portfolios for which bad debt provisionhas been assessed using theaging analysis approach:
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Aging|Closingbalance||||Openingbalance||||
||Carryingamountbalance|Baddebtprovision|Proportion(%)|Carryingvalue|Carryingamountbalance|Baddebtprovision|Proportion(%)|Carryingvalue|
|Within1year|14,666,413.29|-|-|14,666,413.29|14,436,075.12|-|-|14,436,075.12|

 (2)Top five balances ofaccounts receivable classified bydebtor:
Unit: RMB
||||||
|-|-|-|-|-|
|Nameofentity|RelationshipwiththeCompany|Closingbalance|Proportionoftheclosingbalancetothetotalaccountsreceivable(%)|Closingbalanceofbaddebtprovision|
|CustomerF|Thirdpartywithtransactions|3,511,309.00|23.84|-|
|CustomerG|Thirdpartywithtransactions|3,088,540.38|20.97|-|
|CustomerH|Thirdpartywithtransactions|3,361,812.17|22.82|-|
|CustomerI|Thirdpartywithtransactions|2,001,873.16|13.59|-|
|CustomerJ|Thirdpartywithtransactions|1,015,568.20|6.89|-|
|Total||12,979,102.91|88.11|-|

 2.Otherreceivables
(1) Disclosureof otherreceivables bycategories
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Category|Closingbalance|||||Openingbalance|||||
||Carryingamountbalance||Baddebtprovision||BCarryingvalue|Carryingamountbalance||Baddebtprovision||BCarryingvalue|
||Amount|Proportion(%)|Amount|Proportion(%)||Amount|Proportion(%)|Amount|Proportion(%)||
|Otherreceivablesthatareindividuallysignificantandforwhichbaddebtprovisionhasbeenassessedindividually|-|-|-|-|-|-|-|-|-|-|
|Otherreceivablesforwhichbaddebtprovisionhasbeenassessedbycreditriskportfolios|||||||||||
|Portfolio1|581,387,532.80|99.75|-|-|581,387,532.80|678,272,733.47|99.82|-|-|678,272,733.47|
|Portfolio2|1,455,758.02|0.25|391,186.82|26.87|1,064,571.20|1,218,472.01|0.18|383,456.60|31.47|835,015.41|
|Subtotalofportfolios|582,843,290.82|100.00|391,186.82|0.07|582,452,104.00|679,491,205.48|100.00|383,456.60|0.06|679,107,748.88|
|Otherreceivablesthatarenotindividuallysignificantbutforwhichbaddebtprovisionhasbeenassessedindividually|-|-|-|-|-|-|-|-|-|-|
|Total|582,843,290.82|100.00|391,186.82|0.07|582,452,104.00|679,491,205.48|100.00|383,456.60|0.06|679,107,748.88|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XIII) NOTESTOTHE KEYITEMSINTHECOMPANY’S FINANCIAL STATEMENTS - continued
2.Otherreceivables -continued
(1)Disclosure ofother receivables bycategories -continued
Otherreceivables portfolios forwhich bad debt provisionhas beenassessed using theaging analysis
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Aging|Closingbalance||||Openingbalance||||
||Carryingamountbalance|Baddebtprovision|Proportion(%)|Carryingvalue|Carryingamountbalance|Baddebtprovision|Proportion(%)|Carryingvalue|
|Within1year|1,034,396.62|149.26|0.01|1,034,247.36|835,015.41|-|-|835,015.41|
|Morethan1yearbutnotexceeding2years|37,904.80|7,580.96|20.00|30,323.84|-|-|-|-|
|Morethan2yearsbutnotexceeding3years|-|-|-|-|-|-|-|-|
|Morethan3years|383,456.60|383,456.60|100.00|-|383,456.60|383,456.60|100.00|-|
|Total|1,455,758.02|391,186.82|26.87|1,064,571.20|1,218,472.01|383,456.60|31.47|835,015.41|

 (2) Disclosure ofotherreceivables bynature
Unit: RMB
||||
|-|-|-|
|Item|Closingbalance|Openingbalance|
|Temporarypayments|2,095,061.81|3,726,739.80|
|Deposits|306,791.32|249,328.31|
|Others|580,441,437.69|675,515,137.37|
|Including:amountsduefromsubsidiaries|580,057,981.09|674,871,443.87|
|Total|582,843,290.82|679,491,205.48|

 (3)Topfive balances ofother receivables classified bydebtor:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Nameofentity|Natureofthefund|Amount|Aging|Proportionoftheamounttothetotalaccountsreceivable(%)|Closingbalanceofbaddebtprovision|
|DGT|Temporarypaymentduefromsubsidiaries|361,632,988.72|Withinoneyear|62.05|-|
|DGW|Temporarypaymentduefromsubsidiaries|214,500,000.00|Withinoneyear|36.80|-|
|ChiwanWharfHoldings(HongKong)Limited.|Temporarypaymentduefromsubsidiaries|2,851,360.05|Morethanthreeyear|0.49|-|
|NanshanGroup|Temporarypaymentsfromrelatedparties|1,022,760.39|Morethan2yearbutnotexceeding3years|0.18|-|
|CCT|Temporarypaymentduefromrelatedparties|725,678.44|Withinoneyear|0.12|-|
|Total||580,732,787.60||99.64|-|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XIII) NOTESTOTHE KEYITEMSINTHECOMPANY’S FINANCIAL STATEMENTS -continued
3.Long-term equityinvestments
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee|Openingbalance|Changes||||||||Closingbalance|Closingbalanceofprovisionforimpairment|
|||Increase|Decrease|Investmentincomeunderequitymethod|Reconcilingitemsfromothercomprehensiveincome|Otherequitymovements|Cashdividendsorprofitsannouncedofissuance|Provisionforimpairment|Others|||
|I. Subsidiaries||||||||||||
|ShenzhenChiwanInternationalFreightAgencyCo.,Ltd|5,500,000.00|-|-|-|-|-|-|-|-|5,500,000.00|-|
|CHCC|250,920,000.00|-|-|-|-|-|-|-|-|250,920,000.00|-|
|ShenzhenChiwanTransportationCo.,Ltd|7,000,000.00|-|-|-|-|-|-|-|-|7,000,000.00|-|
|ChiwanWharfHoldings(HongKong)Limited|1,070,000.00|-|-|-|-|-|-|-|-|1,070,000.00|-|
|ShenzhenChiwanTugboatCo.,Ltd|24,000,000.00|-|-|-|-|-|-|-|-|24,000,000.00|-|
|CCT|421,023,199.85|-|-|-|-|-|-|-|-|421,023,199.85|-|
|DGW|186,525,000.00|-|-|-|-|-|-|-|-|186,525,000.00|-|
|DGT|175,000,000.00|-|-|-|-|-|-|-|-|175,000,000.00|-|
|Subtotal|1,071,038,199.85|-|-|-|-|-|-|-|-|1,071,038,199.85|-|
|II. Associates||||||||||||
|ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd|12,833,857.95|-|-|1,761,382.97|-|-|-|-|-|14,595,240.92|-|
|CMBL|145,351,043.43|-|-|5,676,580.50|-|957,821.05|-|-|-|151,985,444.98|-|
|Subtotal|158,184,901.38|-|-|7,437,963.47|-|957,821.05|-|-|-|166,580,685.90|-|
|III.Jointventures||||||||||||
|COHA(Laizhou)|770,930,325.06|-|-|60,183,170.19|-|-|36,132,189.03|-|-|794,981,306.22|-|
|Total|2,000,153,426.29|-|-|67,621,133.66|-|957,821.05|36,132,189.03|-|-|2,032,600,191.97|-|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XIII) NOTESTOTHE KEYITEMSINTHECOMPANY’S FINANCIAL STATEMENTS - continued
4.Operating income andoperating costs
Unit: RMB
||||||
|-|-|-|-|-|
|Item|2016||2015||
||Income|Cost|Income|Cost|
|Principaloperating|196,844,379.94|141,627,809.07|228,693,176.21|153,418,697.04|
|Otheroperating|27,140,761.84|757,252.02|32,047,743.16|1,215,450.74|
|Total|223,985,141.78|142,385,061.09|260,740,919.37|154,634,147.78|

 5.Investmentincome
(1)Details ofinvestment income
Unit: RMB
||||
|-|-|-|
|Item|2016|2015|
|Incomefromlong-termequityinvestmentsundercostmethod|134,702,787.76|217,818,690.44|
|Incomefromlong-termequityinvestmentsunderequitymethod|67,621,133.66|52,671,209.47|
|Investmentincomefromthedisposaloflong-termequity|-|1,878,969.73|
|investmentInvestmentincomeonavailable-for-salefinancialassets,etc.|6,292,187.85|3,601,220.00|
|Total|208,616,109.27|275,970,089.64|

 (2)Income from long-term equity investmentsunder cost method
Unit: RMB
|||||
|-|-|-|-|
|Investee|2016|2015|Reasonsforincreasesordecreasesinthecurrentcomparedtothepriorperiod|
|CCT|-|108,370,429.14|Thedividendsdistributedbyinvesteefluctuate.|
|CHCC|115,390,687.74|89,592,252.90|Thedividendsdistributedbyinvesteefluctuate.|
|ShenzhenChiwanTugboatCo.,Ltd|16,514,592.21|18,738,081.41|Thedividendsdistributedbyinvesteefluctuate.|
|ShenzhenChiwanTransportationCo.,Ltd|2,520,533.55|858,954.54|Thedividendsdistributedbyinvesteefluctuate.|
|ShenzhenChiwanInternationalFreightAgencyCo.,Ltd|276,974.26|258,972.45|Thedividendsdistributedbyinvesteefluctuate.|
|Total|134,702,787.76|217,818,690.44||

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XIII) NOTESTOTHE KEYITEMSINTHECOMPANY’S FINANCIAL STATEMENTS - continued
6.Relatedparty transactions
(1) Provision andreceipt ofservices
Unit: RMB
||||||
|-|-|-|-|-|
||Contentofrelatedpartytransaction|Pricinganddecision-makingproceduresofrelatedpartytransactions|2016|2015|
|Receiptofservices:|||||
|ChiwanShipping(HongKong)Limited|Agencyservice|Negotiation|1,068,046.98|-|
|Xuqin|Landscapeengineering|Negotiation|898,037.45|1,279,632.70|
|ChiwanProperty|Propertymanagementservice|Negotiation|458,830.60|490,993.70|
|CMHI|Technicalservice|Negotiation|151,132.13|242,359.49|
|ShenzhenChiwanTugboatCo.,Ltd|Transportationservices|Negotiation|28,256.60|34,226.41|
|ShenzhenChiwanInternationalFreightAgencyCo.,Ltd|Agencyservice|Negotiation|18,209.81|83,931.17|
|ChinaMerchantsContainer|Transportationservices|Negotiation|-|702,070.57|
|ShenzhenChiwanTransportationCo.,Ltd|Transportationservices|Negotiation|-|272,141.51|
|Haixing|Loadandunloadservice|Negotiation|-|60,828.30|
|SMW|Loadandunloadservice|Negotiation|-|30,400.00|
|ShippingAgency|Agencyservice|Negotiation|-|4,925.51|
|Total|||2,622,513.57|3,201,509.36|
|Renderingofservices:|||||
|DGW|Labordispatchservice|Negotiation|16,973,861.28|13,966,685.01|
|DGT|Labordispatchservice|Negotiation|1,698,686.94|-|
|COHA(Laizhou)|Labordispatchservice|Negotiation|1,495,994.08|561,543.76|
|CMSA|Harboradministration|Negotiation|333,178.01|N/A|
|ShippingAgency|Berthagefee,etc,|Negotiation|142,419.81|183,237.71|
|OceanShippingAgency|Loadandunloadservice|Negotiation|18,736.79|106,336.59|
|Xuqin|Loadandunloadservice|Negotiation|4,872.68|6,762.24|
|SCT|Loadandunloadservice|Negotiation|-|17,264.15|
|SMP|Loadandunloadservice|Negotiation|-|11,320.75|
|SMT|Loadandunloadservice|Negotiation|-|9,056.60|
|CCT|Loadandunloadservice|Negotiation|-|2,169.81|
|Total|||20,667,749.59|14,864,376.62|

 (2) Leases with related parties
TheGroup as thelessor:
Unit: RMB
|||||
|-|-|-|-|
|Nameoflessee|Typeofleasedassets|Leaseincomerecognisedinthecurrentyear|Leaseincomerecognisedinthepreviousyear|
|CHCC|Rentalofpackingyards|97,563.42|102,441.59|
|OceanShippingTally|Officelease|58,167.53|65,580.00|
|ShippingAgency|Officelease|5,951.88|-|
|ChiwanBase|Coastalline,packingyardsandroadlighting|-|11,208,750.00|
|CCT|Rentalofpackingyards|-|199,151.11|
|Total||161,682.83|11,575,922.70|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XIII) NOTESTOTHE KEYITEMSINTHECOMPANY’S FINANCIAL STATEMENTS - continued
6.Relatedparty transactions -continued
(2) Leases with related parties - continued
TheGroup as thelessee:
Unit: RMB
|||||
|-|-|-|-|
|Nameoflessor|Typeofleasedassets|Leasepaymentrecognisedinthecurrentyear|Leasepaymentrecognisedinthepreviousyear|
|NanshanGroup|Land,Officeandpackingyard|10,044,055.34|10,272,041.24|
|MalaiWarehouse|Office|3,726,743.96|1,104,870.00|
|ChiwanBase|Office|1,395,430.42|1,523,364.72|
|SCT|Crane|540,000.00|660,000.00|
|CCT|Building|-|104,466.02|
|Total||15,706,229.72|13,664,741.98|

 (3) Asset transferwith related parties
|||||
|-|-|-|-|
|Nameoflessor|Contentofrelatedpartytransaction|2016|2015|
|SMT|Transfermechanicalequipment|1,176,271.66|-|

 7.Amounts duefrom/to related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Relatedparties|Closingbalance|Openingbalance|
|Cashandbankbalances|ChinaMerchantsBank|19,265,421.23|57,416,519.17|
||CDFC|1,211,887.57|55,649,145.28|
||Total|20,477,308.80|113,065,664.45|
|Accountsreceivable|CMSA|44,129.00|N/A|
||ShippingAgency|19,870.00|-|
||ChiwanBase|-|5,113,500.00|
||COHA(Laizhou)|-|535,207.20|
||Total|63,999.00|5,648,707.20|
|Otherreceivables|DGT|361,632,988.72|443,275,000.00|
||DGW|214,500,000.00|227,500,000.00|
||ChiwanWharfHoldings(HongKong)Limited|2,851,360.05|2,850,467.87|
||NanshanGroup|1,022,760.39|1,022,760.39|
||CCT|725,678.44|1,245,976.00|
||CHCC|309,683.43|-|
||ChiwanBase|135,621.91|135,621.91|
||ChinaMerchantsShangzhi|58,766.40|58,766.40|
||HinwinDevelopmentLimited|38,270.45|38,270.45|
||ChiwanProperty|150.00|150.00|
||SCT|-|1,245,976.00|
||Haixing|-|311,494.00|
||CMPS|-|311,494.00|
||Total|581,275,279.79|677,995,977.02|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XIII) NOTESTOTHE KEYITEMSINTHECOMPANY’S FINANCIAL STATEMENTS - continued
7.Amounts duefrom/to related parties -continued
|||||
|-|-|-|-|
|Item|Relatedparties|Closingbalance|Openingbalance|
|Long-termreceivables|ChiwanWharfHoldings(HongKong)Limited|11,004,284.75|11,004,284.75|
|Accountspayable|NanshanGroup|2,906,947.14|3,106,063.74|
||Xuqin|785,059.00|1,445,977.80|
||SCT|-|60,000.00|
||Total|3,692,006.14|4,612,041.54|
|Otherpayables|CHCC|243,733,114.96|190,759,953.28|
||ShenzhenChiwanTransportationCo.,Ltd|46,897,834.66|42,501,681.28|
||ShenzhenChiwanTugboatCo.,Ltd|24,912,752.12|17,656,552.77|
||DGW|13,260,132.40|28,650,894.16|
||DGT|10,133,892.96|14,259,301.60|
||CCT|9,697,899.00|22,420,393.04|
||ChiwanShipping(HongKong)Limited|1,183,964.01|673,055.09|
||ShenzhenChiwanInternationalFreightAgencyCo.,Ltd|975,053.00|1,059,758.93|
||HaiqinEngineering|389,509.47|-|
||NanshanGroup|58,539.14|60,054.00|
||Xuqin|10,000.00|10,000.00|
||ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd|6,400.00|6,400.00|
||Total|351,259,091.72|318,058,044.15|
|Long-termpayables|ChiwanWharfHoldings(HongKong)Limited|116,662,000.00|-|
|Interestspayable|ShenzhenChiwanTransportationCo.,Ltd|1,500,827.59|796,967.00|
||CHCC|1,492,533.76|1,121,027.45|
||ShenzhenChiwanTugboatCo.,Ltd|97,332.08|23,204.11|
||Total|3,090,693.43|1,941,198.56|

 Note: TheCompany collectively manages and coordinates theuseof thecapital within theGroup. The subsidiaries deposit theirfunds with theCompany, and apply forfund whenneeded. The Company collects fund usage expenses based ontheactual financing costs incurred.
SHENZHENCHIWAN WHARFHOLDINGS LIMITED
NOTES TOTHE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31DECEMBER 2016
(XIII) NOTESTOTHE KEYITEMSINTHECOMPANY’S FINANCIAL STATEMENTS - continued
8.Supplementary information to thecash flowstatement
Unit: RMB
||||
|-|-|-|
|Supplementaryinformation|2016|2015|
|1.Reconciliationofnetprofittocashflowsfromoperatingactivities:|||
|Netprofits|195,474,231.11|264,241,215.72|
|Add:Provisionforimpairmentlossesofassets|7,730.22|-|
|Depreciationoffixedassets|11,080,137.72|13,720,795.92|
|Depreciationandamortizationofinvestmentproperty|571,512.27|880,268.27|
|Amortizationofintangibleassets|2,967,175.79|3,060,842.80|
|Amortizationoflong-termprepaidexpenses|179,620.71|469,660.48|
|Losses(Gains)ondisposaloffixedassets,intangibleassetsandotherlong-termassets|1,177,444.73|476,289.37|
|Financialexpenses|34,252,187.10|80,785,844.84|
|Losses(Gains)arisingfrominvestments|(208,616,109.27)|(275,970,089.64)|
|Decrease(Increase)indeferredtaxassets|-|11,093,096.27|
|Decrease(Increase)ininventories|631,788.30|(201,851.14)|
|Decrease(Increase)inoperatingreceivables|101,806,904.44|219,516,152.90|
|Increase(Decrease)inoperatingpayables|41,030,605.89|53,050,704.06|
|Netcashflowsfromoperatingactivities|180,563,229.01|371,122,929.85|
|2.Netchangesincashandcashequivalents:|||
|Closingbalanceofcash|97,401,657.09|331,615,767.60|
|Less:Openingbalanceofcash|331,615,767.60|281,427,034.32|
|Netincrease(decrease)incash|(234,214,110.51)|50,188,733.28|

SHENZHENCHIWAN WHARFHOLDINGS LIMITED
SUPPLEMENTARYINFORMATION TO THECASHFLOW STATEMENT
FOR THE YEAR ENDED 31DECEMBER 2016
1.BREAKDOWNOF EXTRAORDINARY GAINS AND LOSSES
Unit: RMB
||||
|-|-|-|
|Item|Amounts|Description|
|Gainsorlossesondisposalofnon-currentassets|(2,468,885.29)||
|Taxrefundsorreductionswithultraviresapprovalorwithoutofficialapprovaldocuments|-||
|Governmentgrantsrecognizedinprofitorloss(exceptforgrantsthatarecloselyrelatedtotheCompany'sbusinessandareinamountsandquantitiesfixedinaccordancewiththenationalstandard)|1,046,444.12||
|Moneylendingincomeearnedfromnon-financialinstitutionsinprofitorloss|-||
|Theexcessofattributablefairvalueofidentifiablenetassetsovertheconsiderationpaidforsubsidiaries,associatesandjointventures|-||
|Gainsorlossesonexchangeofnon-monetaryassets|-||
|Gainsorlossesonentrustedinvestmentsorassetsmanagement|-||
|Provisionofimpairmentlossesforeachassetduetoforcemajeure,e.g.actsofGod|-||
|Gainsorlossesondebtrestructuring|-||
|Businessrestructuringexpenses,e.g.,expenditureforlayoffofemployees,integrationexpenses,etc.|-||
|Gainsorlossesrelatingtotheunfairportionintransactionswithunfairtransactionprice|-||
|Netprofitorlossofsubsidiariesrecognizedasaresultofbusinesscombinationofenterprisesundercommoncontrolfromthebeginningoftheperioduptothebusinesscombinationdate|-||
|Gainsorlossesarisingfromcontingenciesotherthanthoserelatedtonormaloperatingbusiness|-||
|Gainsorlossesonchangesinthefairvalueoffinancialassetsandfinancialliabilitiesheldfortradingandinvestmentincomeondisposalofheld-for-tradingfinancialassets,held-for-tradingfinancialliabilitiesandavailable-for-salefinancialassets,otherthantheeffectivehedgingactivitiesrelatingtonormaloperatingbusiness|-||
|Reversalofprovisionforaccountsreceivablethataretestedforimpairmentlossesindividually|-||
|Gainsorlossesonentrustedloans|-||
|Gainsorlossesonchangesinthefairvalueofinvestmentpropertiesthataresubsequentlymeasuredusingthefairvaluemodel|-||
|Effectsonprofitorlossofone-offadjustmenttoprofitorlossfortheperiodaccordingtotherequirementsbytaxlawsandaccountinglawsandregulations|-||
|Custodianfeesearnedfromentrustedoperation|-||
|Othernon-operatingincomeorexpensesotherthanabove|3,961,699.05||
|Otherprofitorlossthatmeetsthedefinitionofnon-recurringprofitorloss|-||
|Taxeffects|(595,892.67)||
|Effectsofminorityinterest(aftertax)|(182,852.39)||
|Total|1,760,512.82||

2.RETURNONNETASSETS AND EARNINGS PER SHARE ("EPS")
Thereturn onnet assets and EPShave been prepared byShenzhen Chiwan Wharf Co.,Ltd in accordance withInformation Disclosure andPresentation Rules for Companies Making PublicOffering No.9- CalculationandDisclosureof Return onNet Assets andEarnings per Share(Revised in 2010)issued by ChinaSecurities Regulatory Commission.
Unit: RMB
|||||
|-|-|-|-|
|Profitsincurredinthecurrentperiod|Weightedaveragereturnonnetassets(%)|EPS||
|||BasicEPS|DilutedEPS|
|Netprofitforthecurrentperiodattributable toordinaryshareholders|11.637|0.826|0.826|
|Netprofitattributabletoordinaryshareholdersafterdeductingextraordinarygainsandlosses|11.601|0.823|0.823|