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April 2014
ⅠⅠⅠⅠ
PART Important Notice
The Board of Directors, the Board of Supervisors, directors, supervisors and senior management guarantee that there are no omissions, misstatement or misleading information in this report. They are responsible, individually and jointly, for the authenticity, accuracy and integrity of the information herein.
Except the following directors, other directors attend the Board Meeting.
|||||
|-|-|-|-|
|Absent Director|Post of the Absent Director|Reason|Authorized Person|
|Mr. Fan Zhao Ping|Director|Business Arrangement|Mr. Liu Wei|
|Mr. He Li Ming|Independent Director|Business Arrangement|Mr. Chen Wen Jie|

 The Company plans no cash dividend, bonus shares and not to the reserve fund.
Mr. Tian Junyan, Chairman of the Board, Mrs. Yu Zhongxia, Deputy General Manager&Financial Controller, and Mrs. Sun Yuhui, Financial Manager, guarantee the authenticity and integrity of the financial result in this report. This report is prepared in both Chinese and English languages, when ambiguity occurs in the two versions, the Chinese version shall prevail.
Contents
||||
|-|-|-|
|PART ⅠⅠⅠⅠ.|Important Notice|2|
|PART ⅡⅡⅡⅡ.|Corporate Information|5|
|PART ⅢⅢⅢⅢ.|Accounting Data and Financial Indicators|7|
|PART ⅣⅣⅣⅣ.|The Report of Board of Directors|9|
|PART ⅤⅤⅤⅤ.|Significant Events|24|
|PART ⅥⅥⅥⅥ.|Changes in Capital Stock and Shareholders|30|
|PART ⅦⅦⅦⅦ.|Directors, Supervisors, Senior Management and Staff|34|
|PART ⅧⅧⅧⅧ.|Corporate Governance|41|
|PART IX.|Internal Control|46|
|PART X.|Financial Report|48|
|PARTⅪⅪⅪⅪ.|Documents Available for Verification|48|

Definition
||||
|-|-|-|
|Terms to be defined|Refers to|Definition|
|The Company, Chiwan Base|Refers to|Shenzhen Chiwan Petroleum Supply Base Co., Ltd.|
|Nanshan Group|Refers to|China Nanshan Development (Group) Incorporation|
|Blogis Holding|Refers to|Blogis Holding Co., Ltd.|
|Shanghai Baowan|Refers to|Shanghai Baowan International Logistic Co., Ltd.|
|Guangzhou Baowan|Refers to|Guangzhou Baowan Logistic Co., Ltd.|
|Kunshan Baowan|Refers to|Kunshan Baowan International Logistic Co., Ltd.|
|Tianjin Baowan|Refers to|Tianjin Baowan International Logistic Co., Ltd.|
|Langfang Baowan|Refers to|Langfang Baowan International Logistic Co., Ltd.|
|Chengdu Xindu Baowan|Refers to|Chengdu Xindu Baowan International Logistic Co., Ltd.|
|Chengdu Longquan Baowan|Refers to|Chengdu Longquan Baowan International Logistic Co., Ltd.|
|Nanjing Baowan|Refers to|Nanjing Baowan International Logistic Co., Ltd.|
|Tianjin Bingang Baowan|Refers to|Tianjin Bingang Baowan International Logistic Co., Ltd.|
|Nantong Baowan|Refers to|Nantong Baowan International Logistic Co., Ltd.|
|Wuhan Baowan|Refers to|Baowan Logistic（Wuhan）Co., Ltd.|
|Yangluo Baowan|Refers to|Baowan Logistic（Wuhan）Yangluo Co., Ltd.|
|Shenzhen Baowan|Refers to|Shenzhen Baowan International Logistic Co., Ltd.|
|Shanghai Mingjiang|Refers to|Mingjiang (Shanghai) International Logistic Co., Ltd.|
|Shenyang Baowan|Refers to|Shenyang Baowan International Logistic Co., Ltd.|
|Tianjin Qingwu Baowan|Refers to|Tianjin Qingwu Baowan International Logistic Co., Ltd.|
|CSE/Sembawang|Refers to|Shenzhen Chiwan Sembawang Engineering Co., Ltd|
|||Shenzhen Chiwan Offshore Petroleum Equipment Repair &|
|CPEC|Refers to||
|||Manufacture Co., Ltd. (CPEC)|
|China Development Finance|Refers to|China Development Finance Company Limited|

Important Risk Notice
Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn are the media designated for disclosing our information. All theCompany’s information is subject to the information disclosed in the aforesaid media as designated. The description of the future development in this report does not constitute
a commitment for investors. Investors are requested to pay attention to the risks involved in your
investment.
ⅡⅡⅡⅡ
PART Corporate Information
I. Company Profile
|||||
|-|-|-|-|
|Stock Abbreviation|Chiwan Base-B|Stock Code|200053|
|Stock Exchange|Shenzhen Stock Exchange|||
|Company’s Name in Chinese|深圳赤湾石油基地股份有限公司|||
|Company’s Short Name in Chinese|深基地B|||
|Company’s Name in English|Shenzhen Chiwan Petroleum Supply Base Co., Ltd.|||
|Company’s Short Name in English|Chiwan Base|||
|Legal Representative|Tian Junyan|||
|Registered Address|Chiwan, Shenzhen|||
|Post Code|518068|||
|Office Address|14/F, Chiwan Petroleum Building, Shenzhen|||
|Post Code|518068|||
|Website|www.chiwanbase.com|||
|E-mail|sa@chiwanbase.com|||

II. Contact Person and Method
||||
|-|-|-|
||Board Secretary|Securities Representative|
|Name|Song Tao|Li Zizheng|
|Address|14/F, Chiwan Petroleum Building, Shenzhen, PRC|14/F, Chiwan Petroleum Building, Shenzhen, PRC|
|Telephone|0755-26694211|0755-26694211|
|Fax|0755-26694227|0755-26694227|
|Email|sa@chiwanbase.com|sa@chiwanbase.com|

III. Information Disclosure
|||
|-|-|
|Designated Newspapers for Information Disclosure|Securities Times, Hong Kong Commercial Daily|
|Website for Information Disclosure|www.cninfo.com.cn|
|Place Of Regular Reports Prepared For Inquiry|14/F, Chiwan Petroleum Building, Shenzhen, PRC|

ⅣⅣⅣⅣ.Changes
in Registration
|||||||
|-|-|-|-|-|-|
|||Registered|Number of|Taxation|Organization|
||Date of Registration|||||
|||Address|Business License|Registration Number|Code|
|||Chiwan,|Qi Gu Yue Shen|||
|Initial||||||
||February 10, 1984|Shekou,|Zong Zi No.|440300618833899|61883389-9|
|Registration||||||
|||Shenzhen|101031|||
|Registration at the||Chiwan,||||
|end of the report|December 31, 2013|Shekou,|440301501124066|440300618833899|61883389-9|
|period||Shenzhen||||
|Change of Main||||||
|Business since|N/A|||||
|Listed||||||
|Change of||||||
|Controlling|N/A|||||
|Shareholder||||||

ⅤⅤⅤⅤ.
Other Information
Appointed Certified Public Accountants
|||
|-|-|
|Name of the CPAs|Deloitte Touche Tohmatsu Certified Public Accountants LLP|
|Office Address|30F, Waitan Center, No. 222 Yan’an Road East, Shanghai|
|Names of the Certified Public||
||Li Weihua, Fang Shaofan|
|Accountants as the signatories||

The sponsor performing persistent supervision duties engaged by the Company in the reporting period
□Applicable√ Inapplicable
The financial advisor performing persistent supervision duties engaged by the Company in the reporting period□Applicable√ Inapplicable
ⅢⅢⅢⅢ
PART . Accounting Data and Financial Indicators
I. Major Accounting Data and Financial Indicators
Retroactive Adjustment
□ Yes √ No
Unit: RMB
||||||
|-|-|-|-|-|
||||Percentage Change||
||Y2013|Y2012||Y2011|
||||(%)||
|Operating Revenue|691,832,626.47|578,591,906.37|19.57%|461,923,472.76|
|Net Profit Attributed to|207,564,394.21|162,182,965.40|||
|Shareholders of Listed|||27.98%|129,274,351.74|
|Company|||||
|Net Profit Net of|||||
|Non-recurring Gain and Loss|203,689,503.81|159,080,420.14|28.04%|125,777,485.70|
|Attributed to Listed Company|||||
|Net Cash Flows from|435,461,050.15|327,679,121.29|||
||||32.89%|267,653,960.54|
|Operating Activities|||||
|Basic Earnings per Share|0.9|0.7|||
||||28.57%|0.56|
|(RMB/Share)|||||
|Diluted Earnings per Share|N/A|N/A|||
||||N/A|N/A|
|(RMB/Share)|||||
|Weighted Return on Equity|||||
||15.07%|13.23%|+1.84%|11.77%|
|（%）|||||
||||Percentage Change|December 31,|
||December 31, 2013|December 31, 2012|||
||||(%)|2011|
|Total Assets|4,501,064,624.96|4,479,086,519.77|0.49%|3,647,993,280.18|
|Owner’s Equity Attributed to|1,472,986,548.28|1,287,559,503.34|||
|Shareholders of Listed|||14.4%|1,160,341,793.12|
|Company|||||

II. Items of Non-recurring Gains& Losses
Unit: RMB
|||||
|-|-|-|-|
|Item|Amount in 2013|Amount in 2012|Amount in 2011|
|Disposal of non-current assets, including the||||
|part offset with the provision for impairment of|223,146.43|26,800.93|546,451.05|
|assets||||
|Government grants recognized in current year’s||||
|profit or loss (except for the fixed or||||
|quantitative government grants closely related|4,694,608.73|4,305,837.99|3,341,765.88|
|to the enterprise businesses according to the||||
|national unified standard)||||
|Other non-operating revenue and expenditure||||
||265,188.43|673,808.75|185,416.76|
|excluding the above-mentioned items||||
|Influence on income tax|1,295,735.90|1,251,611.92|504,632.58|
|Amount affected by minority equity (after tax)|12,317.29|652,290.49|72,135.07|
|Total|3,874,890.40|3,102,545.26|3,496,866.04|

For theCompany‘s non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering their Securities to the Public– Non-recurring Gains and Losses and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering their Securities to the Public– Non-recurring Gains and Losses which have been defined as recurring gains and losses, it is necessary to explain the reason.
□ Applicable√ Inapplicable
ⅣⅣⅣⅣ
PART . Report of the Board of Directors
I. Overview
During the report period, the Board of Directors and the management team of the company implemented its developing strategy and adhere to steady management idea, risk of control, detailed management. In terms of new project development, deep-water oil logistics business, logistics parks operation, financing, personnel training, construction management, auditing, internal control, security control and so on, the company has obtained outstanding achievement with clear ideas and sound measures. In 2013 the company has achieved revenue at RMB 692 million, an increase of19.6% compared with 2012 fiscal year; net profit at RMB224 million, an increase of27.8% compared with 2012 fiscal year. The increase of operating income and net profit was mainly due to:
1,Oil logistics business performs in good condition, while leasing costs, labor costs rose rapidly. The company shows outstanding cost control ability, maintaining stable profitability.
2, Baowan business performs well. Shanghai Mingjiang Baowan, Langfang Baowan and second phase Chengdu Longquan Baowan, put into operation in 2012, have achieved growth in revenue and profit in 2013. Meanwhile, warehouse rental prices maintain steady growth.
3, Investment income grows up from CSE and CPEC.
ⅡⅡⅡⅡ.
Analysis of Main Business
1. Overview
The company's main business provides oil logistics support services for the exploration, development and production activities in the eastern South China Sea, a platform integrated Logistics Park serviced by holding subsidiaries, offshore structure fabrication and maintenance services through joint stock companies.
The analysis of the business and performance of the company's main subsidiaries and joint ventures
(1) Offshore Oil Logistics Business
In 2013, oil logistics business achieved operating income of RMB350million, an increase of14.3% compared with 2012 fiscal year ; net profit of RMB 150 million, an increase of25.5% compared with 2012 fiscal year. In the case of rising rental and labor costs, it maintained a relatively stable profitability.
(2) Blogis Business
Brief Summarize of Blogis
Unit: Million RMB
|||||||
|-|-|-|-|-|-|
|Parks|Revenue|Net Profit|Occupation Rate（%）|RevenueGrowth（%）|Net ProfitGrowth（%）|
|Shanghai Baowan|84.62|38.14|100|109.3|90.7|
|Shanghai Mingjiang|45.99|24.76|91.6|229.9|219.7|
|Kunshan Baowan|48.38|20.08|100|106.7|114.9|
|Langfang Baowan|33.93|11.31|100|180.1|236.8|
|Tianjin Baowan|53.81|20.12|100|110.3|155.8|

|||||||
|-|-|-|-|-|-|
|Xindu Baowan|19.32|4.75|97.8|118.8|175|
|Longquan Baowan|29.78|6.87|96|137.9|197.9|
|Guangzhou Baowan|7.53|-26|100|107.8|-|
|Shenzhen Baowan|18.16|2.4|80|106.9|405.3|

 Note: The net profit of above-mentioned subsidiaries includes interest expenses.
(3)Joint Ventures
CSE: The Company holds32% stake. In 2013,CSE’s contribution to the company investment income is 60.74million, an increase of4% compared with 2012 fiscal year.
CPEC: The Company holds a20% stake. In 2013CPEC’s contribution to the Company is RMB780,000. an increase of3% compared with 2012 fiscal year. For business development, CPEC has been renamed as Shenzhen Chiwan Offshore Oil Engineering Co., Ltd., and set up a branch in Tianjin. The expansion in the scope and scale provide a wider space for the company.
China Development Finance Limited: The Company holds20% stake. It opened on July 24, 2013 and contributed RMB1.1 million to the company in 2013.
Project Construction Development
Guangzhou Baowan Plot A: The construction of 4 3-tier warehouses, one office building and ancillary buildings with an area of about
133,000㎡,
which the main program is expected to complete in June 2014.
Chengdu Longquan Baowan: The
3th
phase construction of 2 warehouses with an area of around
48,000㎡is expected to be completed in April 2014, which currently have completed the main steel structure.
Nanjing Baowan: The construction of seven warehouses and one multiple-used building with an area of 107,000 m2
is expected to be completed in September 2014.
Nantong Baowan
1st
Phase: The construction of four warehouses and two multiple-used building with an area of 46,700
m2
is expected to be completed in August 2014.
Wuhan Baowan: The construction of eight warehouses and a multiple-used building with an area of 177,000 m2 is expected to be split in two phase. The
1st
phase with an area of about 140,000
m2
is expected to be completed in November 2014.
Chiwan Base Eastern Highland Project: The construction of 2 new warehouse located Land A with an area of12,000㎡
is finished at the end of 2013. The office building expansion project in Land B with an area of
1,000㎡, is planned to be completed and deliver in April 2014.
Tianjin Bingang Baowan: The ground treatment works have been completed. Preloading and construction design is undergoing.
Shenyang Baowan: The project preparatory is undergoing.
The reason of the actual results of the Company is lower or higher by20% than former publicly disclosed earnings forecast for the year
□ Applicable√ Inapplicable
The reason of the actual results of the Company is lower or higher by20% than former publicly disclosed earnings forecast for the year
□ Applicable√ Inapplicable
2. Revenue
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Classification|||Y 2013|||Y 2012|||Change (%)|
||||Amount|Ratio (%)||Amount||Ratio (%)||
|Warehouse and Storage||440,603,925.00||63.69%|367,861,802.24||63.58%||19.77%|
||Loading and Unloading Services||102,070,501.85|14.75%||94,289,929.39||16.30%|8.25%|
||Harbor Management||80,866,836.85|11.69%||72,720,364.43||12.57%|11.20%|
||Office Leasing and Other||53,453,791.34|7.73%||42,684,722.03||7.38%|25.23%|
||Other||14,837,571.43|2.14%||1,035,088.28||0.18%|1333.46%|

The increase of Other revenue resulted from building warehouses for clients (amounted to RMB14.61 million). Important orders
□ Applicable√ Inapplicable
Important changes or adjustment of products or services.
□ Applicable√ Inapplicable
Main Clients
|||
|-|-|
|Total Sales Revenue of Top 5 Clients (RMB)|216,834,839.77|
|Ratio of Top 5 sales revenue in 2013（%）|31.34%|

 Information of Top 5 Clients
√Applicable□Inapplicable
|||||
|-|-|-|-|
||||Ratio of sales revenue|
|No.|Client Name|Sales Revenue (RMB)||
||||in 2013（%）|
|1|Shenzhen Weisheng Offshore Oil Technology Co.|112,761,024.56|16.3%|
|2|Shenzhen Oilfield Engineering Underwater Technology Ltd|29,353,658.33|4.24%|
|3|Li & Fung Supply Chain Management (China) Co., Ltd.|27,511,178.18|3.98%|
|4|China Volkswagen|24,339,416.89|3.52%|
|5|Guangzhou Fengshen Logistics Co., Ltd|22,869,561.81|3.31%|
|Total|——|216,834,839.77|31.34%|

 3.Costs
Unit: RMB
|||||||
|-|-|-|-|-|-|
||2013||2012|||
|Industries|||||Change (%)|
||Amount|Ratio (%)|Amount|Ratio (%)||
|Warehouse and Storage|157,981,199.56|62.48%|148,752,641.14|64.65%|6.2%|
|Loading and Unloading Services|40,518,647.70|16.02%|39,014,276.13|16.96%|3.86%|
|Harbor Management|15,098,162.53|5.97%|14,786,749.77|6.43%|2.11%|
|Office Leasing and Other|26,418,443.20|10.45%|26,256,670.51|11.41%|0.62%|
|Others|12,844,024.86|5.08%|1,268,656.07|0.55%|912.41%|

Note: The increase of costs was due to the current new construction projects of new customer's warehouse agent. 4. Expenses
|||||
|-|-|-|-|
|Item|2013|2012|Percentage Change (%)|
|Sales|1,108,956.18|3,293,090.34|-66.32%|

||||
|-|-|-|
|Administration|88,860,395.44|65,804,669.78|
|Financialmanagement|142,061,450.21|119,071,509.34|
|Income tax|53,582,318.37|26,045,194.39|

Note to the year-on-year change of the relevant data by over30%
1, Sales expense decreased was due to a reduction of the occurrence of this year's proxy intermediary fees; 2,Administration expense increased was due to increased personnel, salary adjustments during the year, which resulted in an increase in labor costs, and more subsidiaries during the year to obtain land certificates lead to asset amortization and land taxes increased considerably;
3, Income tax expenses increased due to the increase of operation profit and Shanghai Baowan tax policy adjustments.
5. Cash Flow
Unit: RMB
|||||
|-|-|-|-|
|Item|2013|2012|Percentage Change (%)|
|Subtotal of Cash Inflows from Operating Activities|762,227,788.21|603,782,198.19|26.24%|
|Subtotal of Cash Outflows from Operating Activities|326,766,738.06|276,103,076.90|18.35%|
|Net Cash Flows from Operating Activities|435,461,050.15|327,679,121.29|32.89%|
|Sub-total of Cash Inflows from Investing Activities|3,897,275,951.37|2,052,835,702.31|89.85%|
|Subtotal of Cash Outflows from Investing Activities|4,499,152,467.46|2,453,887,269.58|83.35%|
|Net Cash Flows from Investing Activities|-601,876,516.09|-401,051,567.27|50.07%|
|Subtotal of Cash Inflows from Financing Activities|89,436,489.13|1,790,183,923.97|-95%|
|Sub-total of Cash Outflows from Financing Activities|582,976,837.40|1,225,406,614.79|-52.43%|
|Net Cash Flows from Financing Activities|-493,540,348.27|564,777,309.18|-187.39%|
|Net Increase in Cash and Cash Equivalents|-660,021,459.46|491,242,319.62|-234.36%|

 Note to the year-on-year change of the relevant data by over30%
(1) An increase in cash inflow from investing activities was due to the operation cycle of financial products; (2) An increase in cash outflow from investing activities is mainly due to the increase purchase of financial products;
(3) Cash inflows from financing activities to reduce due to the same period last year received an issue of bonds and medium-term notes in cash RMB970, 000, 000;
(4) Cash outflow from financing activities decreased because of debt reduction in cash outflow.
ⅢⅢⅢⅢ.
Main Business
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||Gross ProfitRate (%)|Operating|||
|||||Operating Cost|Gross Profit|
||||Revenue|||
|||||change over|Rate change|
|Operating|||change over|||
||Operating Cost|||the Same|over the Same|
|Revenue|||the Same|||
|||||Period of Last|Period of Last|
||||Period of Last|||
|||||Year（%）|Year（%）|
||||Year（%）|||

||||||||
|-|-|-|-|-|-|-|
|By Industries|||||||
|Warehouse and|||||||
||440,603,925.00|157,981,199.56|64.14%|19.77%|6.2%|4.58%|
|Storage|||||||
|Loading and|||||||
|Unloading|102,070,501.85|40,518,647.70|60.3%|8.25%|3.86%|1.68%|
|Services|||||||
|Harbor|||||||
||80,866,836.85|15,098,162.53|81.33%|11.2%|2.11%|1.66%|
|Management|||||||
|Office Leasing|||||||
||53,453,791.34|26,418,443.20|50.58%|25.23%|0.62%|12.09%|
|and Other|||||||
|By Regions|||||||
|South China|361,167,258.27|133,772,449.82|62.96%|9.33%|-1.5%|4.07%|
|East China|178,988,382.27|54,471,467.52|69.57%|25.37%|14.11%|3%|
|North China|87,741,243.64|28,707,324.29|67.28%|29.74%|9.49%|6.05%|
|Southwest|||||||
||49,098,170.86|23,065,211.36|53.02%|33.38%|21.08%|4.77%|
|China|||||||

Under the circumstance that the statistic specifications for theCompany‘s principal business data experienced adjustment in the report period, the principal business data upon adjustment of the statistic specifications at the end of the report period in the latest year.
□ Applicable√Inapplicable
ⅣⅣⅣⅣ.
Analysis on Assets and Liabilities
1. Significant Changes in Assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
||December 31, 2013||December 31, 2012|||
||||||Percentage|
|||Ratio in Total||Ratio in Total||
||Amount||Amount||Change（%）|
|||Assets（%）||Assets（%）||
|Cash and Cash Equivalents|233,332,680.86|5.18%|893,354,140.32|19.95%|-14.77%|
|Accounts Receivable|55,359,989.14|1.23%|53,009,042.14|1.18%|0.05%|
|Inventories|996,356.55|0.02%|1,069,721.81|0.02%|0%|
|Investment Real Estate|904,216,455.40|20.09%|939,690,654.45|20.98%|-0.89%|
|Long-term Investment on|476,253,695.39||484,031,681.93|||
|||10.58%||10.81%|-0.23%|
|Stocks||||||
|Fixed Assets|516,378,454.46|11.47%|544,875,016.47|12.16%|-0.69%|
|Construction-in-progress|376,118,459.02|8.36%|20,382,765.11|0.46%|7.9%|

 2. Significant Changes in Liabilities
Unit: RMB
|||||||
|-|-|-|-|-|-|
||December 31, 2013||December 31, 2012|||
||||||Percentage Change|
|||Ratio in Total Assets（%）||Ratio in Total Assets||
||Amount||Amount||（%）|
|||||（%）||
|Long-term|185,443,647.96|4.12%|833,063,851.56|||
|||||18.6%|-14.48%|
|Loans||||||

V. Analysis of Core Competitiveness
1. Offshore Oil Logistics Business
As an internationally renowned petroleum logistics service base, the Company has enjoyed nearly three decades history of development course in the Eastern South China Sea with "Chiwan Base” brand great reputation at home and abroad. The Company embraces excellent multiple advantages of industrial supporting factors, high quality and efficient logistics service capabilities, perfect geographic location and so on.
The domestic and international well-known offshore oil companies were offered long term high standard, high quality, high efficiency logistic services. Along with the national offshore oil business expanding toward deep water, the oil logistics business shall take precaution and prepare in advance to strengthen its competitiveness in shallow-to-deep water comprehensive logistic service, by the aspects of the ongoing advantages, allocation of resources, equipment upgrading, business expanding, skills development and so on, striving to be main logistics base for deep-water exploration in the South China Sea.
2. Blogis Business
It’s another core business of theCompany’s development stagey. Nowadays Blogis service is gradually shaping its logistics network layout all over the country with its leading park scale, well-known industrial brand of logistics parks and rich experience in park development construction and operation management etc. As to price benchmarking, customer resources, service standards, profitability and so on, Blogis plays a leading role in the local logistics market.
As well as developing and building up professional storage facilities, Blogis Holdings provides the settled enterprises with loading and unloading, facilities leasing, product processing, intercity transportation, urban shop distribution, vendor storage handling, logistic finance and other flexible value-added services, which strive to construct advanced supply chain platform with efficient, excellent and safe services to absorb more well-known manufacturers, retailers and logistic partners home and abroad.
Management model, as well-known logistic park developer and operator, Blogis Holdings has formed scientific standardization processes not only in site selection, planning and design, project construction, but also in the property management and supply chain business cooperation after the operation. And there are numbers of professionals in modern logistics park development and management.
ⅥⅥⅥⅥ.
Analysis on Investment
1. External Investment
(1) External Investment
||||||
|-|-|-|-|-|
|External Investment|||||
|Investment in 2013 (RMB)|Investment in 2012 (RMB)||Changes (%)||
|500,000,000.00|450,000,000.00||11%||
|Particulars of Investees|||||
|Company Name||Main Business||Ratio in the investees‘equity (%)|
|||Providing warehouse, loading|||
|Baowan Logistic（Wuhan）Yangluo Co., Ltd.||||77.36%|
|||and unloading services|||
|Nantong Baowan International Logistic Co.,||Providing warehouse, loading|||
|||||77.36%|
|Ltd.||and unloading services|||
|||Providing warehouse, loading|||
|Guangzhou Baowan Logistic Co., Ltd.||||77.36%|
|||and unloading services|||

(2) Joint Venture in Finance Enterprise
|||||||||
|-|-|-|-|-|-|-|-|
|||Initial invest costy（RMB）|Shares Ratio|||||
|||||Shares Ratio Held in|Book Value at|Gain or|Accounting|
|Name|Categor||Held in|||||
|||||2013.12.31（%）|2013.12.31|Loss|Subject|
||||2013.1.1|||||
|China||||||||
||||||||Long-term Equity|
|development|Other|100,000,000.00|20%|20%||||
||||||||Investment|
|finance||||||||
|Total||100,000,000.00|--|--|||--|

 2. Entrusted Financing, Investment in Derivative Products and Entrusted Loan
(1)Entrusted Financing
Unit: RMB Million
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||Actual|||
||||||Determina|Revenue|||
||Connected||Beginning|Ending|||Expected|Actual|
|Trust Party||Amount|||tion of|in This|||
||Transaction||Date|Date|||revenue|Revenue|
||||||Reward|Report|||
|||||||Period|||
|Bank of China|No|8,000|2012-11-09-|2013-01-31-|Cash|8,000|76.4|28.54|
|Bank of China|No|5,000|2012-12-11-|2013-06-11-|Cash|5,000|126|112.33|
|Bank of China|No|7,000|2013-01-09-|2013-04-09-|Cash|7,000|72.49|72.49|
|Bank of China|No|10,000|2013-01-10-|2013-07-12-|Cash|10,000|210.58|210.58|
|Bank of China|No|8,000|2013-02-01-|2013-03-29-|Cash|8,000|51.55|51.55|
|Bank of China|No|6,000|2013-02-08-|2013-02-19-|Cash|6,000|4.16|4.16|
|Bank of China|No|8,000|2013-03-26-|2013-09-26-|Cash|8,000|189.54|189.54|
|Bank of China|No|12,000|2013-04-09-|2013-04-17-|Cash|12,000|6.05|6.05|
|Bank of China|No|2,000|2013-04-09-|2013-06-06-|Cash|2,000|7.31|7.31|
|Bank of China|No|10,000|2013-04-18-|2013-04-23-|Cash|10,000|3.15|3.15|
|Bank of China|No|8,000|2013-04-18-|2013-05-06-|Cash|8,000|9.07|9.07|
|Bank of China|No|2,000|2013-04-18-|2013-06-06-|Cash|2,000|6.17|6.17|
|Bank of China|No|10,000|2013-04-23-|2013-10-23-|Cash|10,000|230.63|230.63|
|Bank of China|No|4,000|2013-06-17-|2013-12-20-|Cash|4,000|91.73|91.73|
|Bank of China|No|3,000|2013-06-08-|2013-07-10-|Cash|3,000|14.1|14.1|
|Bank of China|No|5,000|2013-06-14-|2013-06-21-|Cash|5,000|1.89|1.89|
|Bank of China|No|5,000|2013-06-21-|2013-10-25-|Cash|5,000|89.75|89.75|
|Bank of China|No|9,000|2013-07-05-|2013-07-22-|Cash|9,000|15.93|15.93|
|Bank of China|No|3,000|2013-07-12-|2013-07-22-|Cash|3,000|2.63|2.63|
|Bank of China|No|1,000|2013-08-07-|2013-09-26-|Cash|1,000|3.15|3.15|
|Bank of China|No|4,000|2013-08-27-|2014-02-17-|Cash||93.44|67.66|
|Bank of China|No|7,761|2013-09-27-|2014-03-20-|Cash||184.99|101|
|Bank of China|No|1,300|2013-09-29-|2013-10-14-|Cash|1,300|2.08|2.08|
|Bank of China|No|3,000|2013-10-16-|2013-10-31-|Cash|3,000|4.44|4.44|
|Bank of China|No|5,000|2013-10-23-|2013-12-31-|Cash|5,000|41.59|41.59|
|Bank of China|No|5,000|2013-10-24-|2014-03-20-|Cash||103.71|47.97|
|Bank of China|No|5,000|2013-10-29-|2014-03-27-|Cash||105.12|43.74|
|Bank of China|No|2,000|2013-11-08-|2013-12-31-|Cash|2,000|6.68|6.68|
|Bank of China|No|4,000|2013-12-23-|2013-12-31-|Cash|4,000|2.02|2.02|
|Industrial and|||||||||
|Commercial Bank of|No|4,000|2013-07-03-|2013-08-05-|Cash|4,000|16.27|16.27|
|China|||||||||
|Industrial and|||||||||
|Commercial Bank of|No|4,000|2013-08-08-|2013-09-24-|Cash|4,000|18.54|18.54|
|China|||||||||
|Industrial and|||||||||
|Commercial Bank of|No|1,000|2013-10-17-|2013-12-09-|Cash|1,000|5.23|5.23|
|China|||||||||
|Industrial and|||||||||
|Commercial Bank of|No|1,000|2013-10-17-|2014-02-07-|Cash||12.63|7.81|
|China|||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|China Merchants Bank|No|10,000|2012-12-19-|2013-02-07-|Cash|10,000|64.38|48.93|
|China Merchants Bank|No|10,000|2012-12-28-|2013-02-06-|Cash|10,000|56.38|51.01|
|China Merchants Bank|No|4,000|2012-12-28-|2013-01-03-|Cash|4,000|2.3|1.32|
|China Merchants Bank|No|10,000|2013-01-16-|2013-03-07-|Cash|10,000|61.64|61.64|
|China Merchants Bank|No|8,000|2013-02-04-|2013-04-08-|Cash|8,000|64.9|64.9|
|China Merchants Bank|No|5,000|2013-02-07-|2013-03-21-|Cash|5,000|25.89|25.89|
|China Merchants Bank|No|4,000|2013-02-05-|2013-03-29-|Cash|4,000|26.21|26.21|
|China Merchants Bank|No|10,000|2013-02-08-|2013-02-16-|Cash|10,000|7.01|7.01|
|China Merchants Bank|No|10,000|2013-02-18-|2013-04-12-|Cash|10,000|66.79|66.79|
|China Merchants Bank|No|6,000|2013-02-20-|2013-04-03-|Cash|6,000|31.76|31.76|
|China Merchants Bank|No|8,000|2013-03-06-|2013-05-15-|Cash|8,000|70.58|70.58|
|China Merchants Bank|No|3,000|2013-03-08-|2013-04-28-|Cash|3,000|18.86|18.86|
|China Merchants Bank|No|6,000|2013-03-15-|2013-05-07-|Cash|6,000|39.2|39.2|
|China Merchants Bank|No|5,000|2013-03-20-|2013-05-31-|Cash|5,000|44.38|44.38|
|China Merchants Bank|No|4,000|2013-04-01-|2013-05-31-|Cash|4,000|30.9|30.9|
|China Merchants Bank|No|4,000|2013-04-01-|2013-06-28-|Cash|4,000|46.29|46.29|
|China Merchants Bank|No|8,000|2013-04-10-|2013-04-16-|Cash|8,000|4.91|4.91|
|China Merchants Bank|No|10,000|2013-04-18-|2013-05-31-|Cash|10,000|53.01|53.01|
|China Merchants Bank|No|5,000|2013-05-06-|2013-07-16-|Cash|5,000|43.77|43.77|
|China Merchants Bank|No|6,000|2013-05-09-|2013-06-26-|Cash|6,000|33.93|33.93|
|China Merchants Bank|No|5,000|2013-05-17-|2013-06-28-|Cash|5,000|24.74|24.74|
|China Merchants Bank|No|10,000|2013-06-04-|2013-07-31-|Cash|10,000|68.71|68.71|
|China Merchants Bank|No|10,000|2013-06-03-|2013-08-30-|Cash|10,000|106.08|106.08|
|China Merchants Bank|No|6,000|2013-07-01-|2013-08-23-|Cash|6,000|52.27|52.27|
|China Merchants Bank|No|9,000|2013-07-02-|2013-09-18-|Cash|9,000|115.4|115.4|
|China Merchants Bank|No|9,000|2013-08-01-|2013-10-10-|Cash|9,000|81.12|81.12|
|China Merchants Bank|No|3,000|2013-08-09-|2013-08-30-|Cash|3,000|5.52|5.52|
|China Merchants Bank|No|3,000|2013-08-27-|2013-10-21-|Cash|3,000|20.34|20.34|
|China Merchants Bank|No|13,000|2013-09-02-|2013-10-28-|Cash|13,000|96.73|96.73|
|China Merchants Bank|No|4,000|2013-09-10-|2013-11-04-|Cash|4,000|29.53|29.53|
|China Merchants Bank|No|9,000|2013-09-23-|2013-11-22-|Cash|9,000|73.97|73.97|
|China Merchants Bank|No|10,000|2013-10-17-|2014-01-10-|Cash||128.08|113.02|
|China Merchants Bank|No|4,000|2013-10-24-|2013-12-23-|Cash|4,000|35.51|35.52|
|China Merchants Bank|No|12,000|2013-10-29-|2013-12-13-|Cash|12,000|79.89|79.90|
|China Merchants Bank|No|5,000|2013-11-07-|2014-01-09-|Cash||46.6|39.96|
|China Merchants Bank|No|7,000|2013-12-02-|2014-01-21-|Cash||51.78|30.04|
|China Merchants Bank|No|10,000|2013-12-16-|2014-03-06-|Cash||131.5|24.67|
|Total|-|438,061|-|-|-|383,300|3,749.88|3,284.59|
|Unrecovered Principal and Revenue||0|||||||
|Board Resolution Disclosure Date||June 11, 2012;Jan 4, 2013|||||||
|Shareholders Meeting Resolution|||||||||
|||May 21, 2013|||||||
|Disclosure Date|||||||||

Note: break–even financing products.
(2) No derivatives investment and entrusted loans during the reporting period.
3. Application of Raised Capital
Unit: RMB Million
|||
|-|-|
|Total raised capital|570|
|Total raised capital invested in the report period|270|
|Total raised capital invested accumulatively|570|
|Total raised capital involved in change of the||
||0|
|application in the report period||
|Total accumulative raised capital involved in||
||0|
|change of the application||
|Proportion of the accumulative raised capital||
||0%|
|involved in change of the application||

||
|-|
|Explanation of the Application of Raised Capital|
|The Company issued a seven-year corporate bond of RMB 570 million on December 17, 2012, which was used|
|to pay back bank loans and to add capital liquidity.|

4. Analysis of Main Subsidiaries and Investment Companies
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Company|||Main Product or|Registered|||Operating|Operating||
||Type|Industry|||Total Asset|Net Asset|||Net Profit|
|Name|||Service|Capital|||Revenue|Profit||
||||Warehouse, loading|||||||
|Shanghai||||||||||
||Subsidiary|Service|and unloading|160,000,000.00|291,582,295.77|190,813,409.56|84,619,995.33|50,062,290.79|37,558,708.37|
|Baowan||||||||||
||||services|||||||
||||Warehouse, loading|||||||
|Shenzhen||||||||||
||Subsidiary|Service|and unloading|34,409,050.00|61,421,182.75|54,297,665.21|18,158,592.68|3,176,533.93|2,400,394.42|
|Baowan||||||||||
||||services|||||||
||||Warehouse, loading|||||||
|Tianjin||||||||||
||Subsidiary|Service|and unloading|150,000,000.00|364,700,813.57|138,599,913.21|53,807,695.11|14,107,967.59|10,688,294.98|
|Baowan||||||||||
||||services|||||||
||||Warehouse, loading|||||||
|Kunshan||||||||||
||Subsidiary|Service|and unloading|120,000,000.00|234,328,680.21|124,317,610.46|48,383,985.19|21,676,064.39|16,204,195.29|
|Baowan||||||||||
||||services|||||||
||||Warehouse, loading|||||||
|Langfang||||||||||
||Subsidiary|Service|and unloading|90,000,000.00|197,613,997.85|90,208,224.62|33,933,548.53|9,723,802.48|6,794,265.66|
|Baowan||||||||||
||||services|||||||
||||Warehouse, loading|||||||
|Chengdu||||||||||
||Subsidiary|Service|and unloading|60,000,000.00|135,942,894.28|51,993,460.79|19,322,007.44|911,649.26|679,021.23|
|Xindu||||||||||
||||services|||||||
||||Warehouse, loading|||||||
|Chengdu||||||||||
||Subsidiary|Service|and unloading|100,000,000.00|246,459,024.38|94,413,354.16|29,776,163.42|2,565,335.54|1,845,517.08|
|Longquan||||||||||
||||services|||||||
||||Warehouse, loading|||||||
|Guangzhou||||||||||
||Subsidiary|Service|and unloading|150,000,000.00|302,160,468.37|144,076,800.21|7,531,608.81|-2,038,463.14|-1,645,358.88|
|Baowan||||||||||
||||services|||||||
||||Warehouse, loading|||||||
|Shanghai||||||||||
||Subsidiary|Service|and unloading|120,000,000.00|285,148,048.15|120,766,226.73|45,987,371.75|20,696,671.04|17,018,072.61|
|Mingjiang||||||||||
||||services|||||||
||Investmen||Manufacturing steel|||||||
|||Manufactu||||||||
|Sembawang|t||products for offshore|253,386,000|1,441,173,749.03|1,291,788,175.88|847,771,058.40|213,118,935.32|189,826,570.57|
|||ring||||||||
||Company||engineering, etc.|||||||
||Investmen|||||||||
||||Providing equipment|||||||
|CPEC|t|Service||22,845,500.00|33,909,109.10|28,322,269.63|49,173,303.70|5,432,452.28|3,861,858.67|
||||maintenance services|||||||
||Company|||||||||
||Investmen|||||||||
|China||||||||||
|Development|t|Finance|Financial business|500,000,000.00|1,908,559,441.61|505,525,695.75|18,921,721.85|2,367,594.34|5,525,695.75|
|Financel|Company|||||||||

Acquisition and Disposal of Subsidiaries in the Reporting Period
□ Applicable√Inapplicable
5. Important Non-raisedCapital’s Projects
Unit: RMB Million
|||||||
|-|-|-|-|-|-|
|||Investment in||||
||Total||Accumulated|||
|Project||the report||Progress|Earnings|
||Investment||investment|||
|||period||||
||||||Phase First, Two have|
|||||Two warehouses of phase 3 is expected||
|Chengdu Longquan|||||been put into operation,|
||36,100|5,649|25,306|to finish construction with area of||
|Baowan|||||Phase three is under|
|||||48000 sqms in April, 2014.||
||||||construction.|
|||||Plans to build four warehouses, an|Plot B has been put|
|Guangzhou Baowan||||||
||48,000|20,885|27,684|office building and ancillary buildings,|into operation, Plot A is|
|Plot A||||||
|||||construction area of 133,000 square|under construction.|

|||||||
|-|-|-|-|-|-|
|||||meters, is expected to be completed in||
|||||June 2014 the main project.||
|||||Plans to build seven warehouses and a||
|||||comprehensive building construction||
|Nanjing Baowan|37,300|1,367|13,163|area of 107,000 square meters, is|Under construction|
|||||expected to be completed in September||
|||||2014.||
|||||Ground treatment works have been||
|Tianjin Bingang||||||
||43,000|17,951|19,053|completed, ongoing preloading and|Under construction|
|Baowan||||||
|||||construction design.||
|||||Proposed construction in two phases||
|||||with eight warehouses and a||
|||||comprehensive building construction||
|Wuhan Baowan|54,300|2,198|9,389||Under construction|
|||||area 177,000 square meters, one is||
|||||expected to be completed in November||
|||||2014.||
|||||Plans to build four warehouses and two||
|||||complex building, building area 46,700||
|Nantong Baowan|40,800|3,911|4,547||Under construction|
|||||square meters, one is expected to be||
|||||completed in August 2014.||
|Shenyang Baowan|51,300|180|3,670|Under preparation|Under preparation|
|||52,141|102,812|||
|Total|310,800|||--|--|

ⅦⅦⅦⅦ.
The expected operating results from January to March, 2014
The notes to explain or alert that accumulated net profit forecast beginning of the next reporting period may be loss compared with a year earlier occurrence of significant changes.
ⅧⅧⅧⅧ....Special
Purpose Principal under the Control of the Company
Inapplicable
IX. Prospects for the Future Development
1. Competition Pattern and Development Trend
(1) Offshore Oil Logistics Services
As to the ongoing competition tensions in the South China Sea oil resources, the Country is bound to intensify efforts to exploit oil and gas resources in the South China Sea, especially on deepwater oil and gas fields, which will enlarge logistic service volume. But CNOOC Huizhou production base was put into operation, which will bring great impact to the development of the oil logistics services.
(2)Blogis Business
In 2013, the overall size of China's logistics industry continues to grow, the fixed asset investment of logistics industry keep accelerating; logistics needs of production, including import and export goods category slowing down, FMCG and online shopping flow demand increasing rapidly; manufacturing logistics outsourcing separation speeding up, which brought out logistics services prices continuous rising, but slowlier than before. The market of warehousing and logistics show that land prices continued to raise and the trend of intense competition of striving for potential areas of land resources in the future.
The layout of logistics and infrastructure in the country is still mainly concentrated in the eastern coastal cities and
developed areas, but in the long term logistic nodes of non-coastal cities will also own growing potential.
2. Development Strategy
The Company is committed to be logistic enterprise with outstanding scale logistics parks throughout major cities as well as various logistics services and be industrial leader in domestic petroleum logistics services and integrated logistics services with continuous value creation for customers, shareholders, employees and society. Offshore oil logistics business: To become a creator and leader of industrial standards of logistics services with full range of deep-water oil logistics service capabilities, constantly upgrading and enhancing shallow-water services to maintain its leadership and competitive advantages of Eastern South China Sea oil and gas exploration and development, to struggle for the market share in other Chinese waters, inland oil and gas fields.
Blogis business: Next three to five years the Company would accelerate the layout of logistics park network, covering main cities all over the country with comprehensive and integrated logistics services system to develop into industrial leading company with core competitiveness of "large-scale logistics park network, high-level integrated logistics services ".
3. Operation Plan
2014 was the first year of comprehensive deepening of economic reform, which will further enhance the function of market that play a more important role in the configuration of resources while government-led investment-driven model will be weakened. Under the background of such environment, the company's two core businesses are facing mixed development prospects both opportunities and challenges. To achieve the program objectives, the company will focus on "innovation" and "breakthrough" and fulfill the following aspects:
Oil Logistics business: To strengthen the depth of communication and cooperation with CNOOC, to further clarify the areas, the model and the direction of business cooperation; to effectively promote the upgrading of business transformation of deepwater oil base, to strengthen deepwater operations service capabilities; focusing on serving for significant and large parts as major pieces competitiveness;
BLOGIS business: (1) To continue to increase project development, including by means ofM&A, joint development, custom development and other diversified expansion mode to quickly seize key-nodes of land resources, to strengthen the national network layout; focus on promoting the project execution and implementation of the work plan of land while finishing pre-market research and target customers for withdrawing revenue as soon as possible; (2) to ensure the quality of the project and a strongly forward the project schedule, project optimization management costs, exploring new model of project management; (3) to strengthen the existing extended summary of business experience, actively develop other value-added services, to culture new profit growth point; strengthening standardized management, and promotion of the industry, market and research competitors, to improve customer management system, focusing on strengthening main customer relationship and marketing efforts to enhance their viscosity.
Participation funded enterprises: urging related enterprises to develop bonus system to maximize shareholder value.
4. Capital Requirement, Sources of Funds and the Usage Plan
On the premise of normal daily operations, the Company's demanded capital will be applied to land purchase, development and construction of Baowan logistics parks as well as other projects through mergers, acquisition or joint-venture, to ensure the steady development of the Company's main business. The capital demands are planned to resolve by way of equity fund, bank financing and returned funds from scrolling project investments.
5. The Risk and Measures for Future Development
Basing on the strategic opportunity period of China's economic long-lasting healthy performance, two core busine
sses of the Company would be expected to more prosperous in future as well as the challenges and external risks ahead.
(1)To speed up land acquisition is main foundation to the Company's long-term development. However, under the background of expanding domestic demand, there would be lasting booming demand of construction land. Thus in spite of thegovernment’s strict controlling of land using, it is bound to increase the contradiction between supply and demand.
(2)The expansion of business scale along with larger capital requirement could lead to higher asset-liability ratio and cost of debt, even the risk of shortage of funds.
(3)The coexistence of slowdown in China's economic growth and inflation pressures, combined with the raising c ost of elements such as domestic land, labor, construction materials, fuel would greatly effect on the company prof itability.
(4)There is a need for highly-quality talent and competitive salaries and welfares system to realize the strategic tar gets on the path ofcompany’s rapid growing
The Company plans to carry out the following measures to achieve future development:
(1)To strengthen the immediate study of macro economy, policy trend and industrial development ; to seize key land resources quickly and strengthening network throughout the country.
(2)To strengthen continually cost-controlling system, combined with the company's operation index to track all bu siness incomes, cash back on track, providing the basis for evaluation of the implementation of strategies and pers onnel performance, even early risks detection and prevention in the process of implementation.
(3) Ensure the quality of the project, strongly forward the project schedule, cost optimization project management, explore a new model of project management;
(4)To develop vigorously value-added business and to pursue new profit growth, continually enhancing the industr ial leading standardization system of service management with growing competitiveness.
(5)To further personnel training and employee incentive mechanism with more positive corporate culture, to devel op high-quality, cohesive workforce as offer solid talent basis for fast-growing development of the company. X. Notes of the Board of Directions on the QualifiedAuditor’s Report Issued by the CPAs
Inapplicable
XI. Changes in Accounting Policy, Accounting Estimation and Way of Accounting in Comparison with the Latest Annual Report
Inapplicable
XII. Retrospective Restatement Necessary for Correction of Significant Accounting Errors during the Report Period
Inapplicable
XIII. Changes in Range of the Consolidated Statements in Comparison with the Financial Report of the Previous Year.
“Baowan
Logistic（Wuhan）Yangluo
Co., Ltd.” is brought into the consolidated statements in the report period. XIV. Dividend Distribution
Implementation and Adjustment of Dividend and Cash Distribution Policy
Applicable
According to the requirements of the Shenzhen Securities Regulatory Commission issued the "On conscientiously implement the<a listed company on the further implementation of the cash dividend related matters notice" (SZJGSZi[2012] No. 43) (hereinafter referred to as "the" Notice "" ) , the Board of Directors on planning matters shareholder returns fully communicate with the independent directors and certain shareholders of tradable shares, conducted a special research and feasibility studies, and by the sixth meeting of the Board of Directors of the eleventh communications passed the "planning matters regarding shareholder returns Demonstration Report. " Demonstration report details the return to shareholders planning arrangements specific content and reasons, in particular the contents of the profit distribution policy decision-making procedures and mechanisms, such as cash dividends matters.
According to the contents of the report and to demonstrate the actual situation of the combined company, the sixth meeting of the Board of Directors of the eleventh communications and 2012 Second Extraordinary General Meeting adopted the "Amendment Articles motion ", clearly defines the company's profit distribution Content principle, profit distribution in the form of a cash dividend ratio and conditions, such as profit sharing decision-making process.
Comments on shareholder returns in the revised plan to conduct feasibility studies and "Articles of Association" in the process, feasibility reports of independent directors on planning matters return to shareholders issued a separate opinion, while the company by telephone, E-mail and other ways to listen to the minority shareholders of the Board and aspirations, safeguard the legitimate rights and interests of minority shareholders.
Please see August 3, 2012 and August 23, 2012, "Securities Times", "Hong Kong Commercial Daily" and the information online company announcements.
The dividend distribution scheme in the report period complied with the Articles of Association.
Dividend distribution scheme for last 3 years.
1. 2013: The Company has no planned to distribute cash dividend to the whole shareholders.
2. On May 20, 2013, 2012 Annual GeneralShareholders’ meeting reviewed and approved the dividend distribution scheme for year 2012. Based on the share capital totaling 230,600,000 shares, the Company distributed cash dividend to the whole shareholders at the rate of RMB 1.01 (including tax) for every 10 shares. Please find the details in Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn on July 10, 2013. 3. On June 1, 2012, 2011 Annual GeneralShareholders’ meeting reviewed and approved the dividend distribution scheme for year 2011. Based on the share capital totaling 230,600,000 shares, the Company distributed cash dividend to the whole shareholders at the rate of RMB 1.58 (including tax) for every 10 shares. Please find the details in Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn on July 18, 2012.
Cash dividend distributions for the last three years
Unit: RMB
|||||
|-|-|-|-|
|Year|Cash Dividends Tax|Net Profit Attributed to|Ratio of the Net Profit|

|||||
|-|-|-|-|
||Included|Shareholders|Attributed to Shareholders|
|2013|0|207,564,394.21|0|
|2012|23,290,600.00|162,182,965.40|14.36%|
|2011|36,434,800.00|129,274,351.74|28.18%|

XV、、、、Distribution
of profits and capital reserve capitalization plan for the reporting period
|||
|-|-|
|Equity base (share) Distribution Plan|230,600,000|
|The total cash dividends (million) (including tax)|0|
|Distributable profit (yuan)|616,776,064.40|
|Cash dividend policy||
|See August 3, 2012 disclosed information online www.cninfo.com.cn "Demonstration Report on shareholder||
|returns planning matters".||
|Details of distribution of profits or capital fund plan description||
|The Company has no planned to distribute cash dividend to the whole shareholders for year 2013.||

Parent company earnings and undistributed profit for the reporting period are no cash dividend
distribution plan.
√Applicable
|||
|-|-|
|Undistributed earnings reporting period and the reasons||
|for the parent company cash dividend distribution plan|Undistributed profits purpose and using plan|
|is positive but not raised||
|The rapid development of the company's business, the||
||For the company's operations and development|
|growing demand for funds||

XVI. Social Responsibility
Inapplicable
XVII .Reception, Research and Interview in the Report Period
|||||||
|-|-|-|-|-|-|
|Time|Location|Method|Type of Visitors|Visitor|Topics Discussed|
||||||Business operation and|
|||||Matthews||
|April 15,|||||development of logistics|
||Shenzhen|Field Research|Institution|International Capital||
|2013|||||parks. Providing Company|
|||||Management, LLC||
||||||brochures.|
||||||Business operation and|
|May 17,||||Cederberg Capital UK|development of logistics|
||Shenzhen|Field Research|Institution|||
|2013||||LLP|parks. Providing Company|
||||||brochures.|
||||||Business operation and|
|May 29,||||Yinhua Fund|development of logistics|
||Shenzhen|Field Research|Institution|||
|2013||||Management Co. Ltd.|parks. Providing Company|
||||||brochures.|
|June 5, 2013|Shenzhen|Telephone|Institution|Value Partners|Business operation and|

|||||||
|-|-|-|-|-|-|
|||Communication||Limited|development of logistics|
||||||parks. Providing Company|
||||||brochures.|
|||||Cederberg Capital UK||
|September|||||shanghai Baowan operation|
||Shanghai|Field Research|Institution|LLP、Charles Wang、||
|12, 2013|||||issue|
|||||Daniel Ng||
||||||Business operation and|
|November|||||development of logistics|
||Shenzhen|Field Research|Institution|CICC||
|13，2013|||||parks. Providing Company|
||||||brochures.|
||||||Business operation and|
|||||Mattews International||
|November|||||development of logistics|
||Shenzhen|Field Research|Institution|Capital Management,||
|21，2013|||||parks. Providing Company|
|||||LLC||
||||||brochures.|

PART
ⅤⅤⅤⅤ
Significant Events
ⅠⅠⅠⅠ.
Main Lawsuits and Arbitration Affairs
□ Applicable√ Inapplicable
There were no important lawsuits and arbitration affairs.
II. Media Query
□ Applicable√ Inapplicable
There was no media query in the report period.
III. Non-operation Oriented Fund Occupancy by the Controlling Shareholder and/or Related Parties
Inapplicable
IV. Bankruptcy and Recombination
□ Applicable √ Inapplicable
V. Assets Transaction
In the report period, there was no asset acquisition, assets sales and asset substitution.
VI. Implementation and Influence of Equity Incentives
Inapplicable
VII. Important Connected Transactions
1. Connected Transactions Involving Daily Operation
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Ratio of|||||
||||||||||Market|||
|||Type of|||Price (Unit:|Amount|Same Type|||||
|Transaction|Relationshi|||Pricing|||||Price (Unit:|Disclosure|Disclosure|
|||Connected|Contents||RMB|(Unit: RMB|of|Settlement||||
|Party|p|||Principle|||||RMB|Date|Index|
|||Transaction|||Million)|Million)|Transaction|||||
||||||||||Million)|||
||||||||(%)|||||
||||Renting|||||||||
|Nanshan|Parent|Providing|Office and|Market||||Bank|||Prediction|
||||||6.85|6.85|22.6%||6.85|||
|Group|Company|Services|Maintenanc|Price||||Settlement|||of|
||||e Services||||||||connected|
||||Renting||||||||transaction|
|||||||||||2013.3.27||
||||Land and||||||||involving|
|Nanshan|Parent|Receiving|Building,|Market||||Bank|||daily|
||||||7.32|7.32|100%||7.32|||
|Group|Company|Services|Receiving|Price||||Settlement|||operation in|
||||Power||||||||2013|
||||Supply|||||||||
|Total||||--|--|14.17||--|--|--|--|
|Large Amount Return of Goods||||N/A||||||||
|Necessity of Connected Transaction||||The connected transaction is normal business activity and is necessary for the Company’s operation. The||||||||

|||
|-|-|
||price is based on market price. It does not damage other shareholders’ interest.|
|The Influence on Listed Company’s Independence|N/A|

2. Connected Transactions of Assets Acquisition and Sales
There were no connected transactions of assets acquisition and sales.
3. Important Connected Transactions of Joint Investment
There were no Important Connected Transactions of Joint Investment.
4. Connected Claims and Liabilities
Did there exist any non-operational related rights of credit and liabilities
□ Yes√ No
|||||||||
|-|-|-|-|-|-|-|-|
|||||||Incurred|Ending|
|||||Does there exist|Opening|||
|||||||Amount|balance|
|Connected||||non-operation|Balance(U|||
||Relationship|Type|Reason|||(Unit:|(Unit:|
|Party||||oriented fund|nit: RMB|||
|||||||RMB|RMB|
|||||occupancy?|0,000)|||
|||||||0,000)|0,000)|
|Nanshan||||||||
||||Long-term payables are|||||
|Group---Lon|Parent|Account||||||
||||construction funds of logistics parks|No|19,125|2,076|21,201|
|g-term|Company|Payables||||||
||||paid by Nanshan Group|||||
|Payables||||||||
|Nanshan|||Other non-current liabilities are|||||
|Group---Oth|||borrowings from Nanshan Group in|||||
||Parent|Account||||||
|er|||2011, in which RMB 650 million|No|70,000|0|70,000|
||Company|Payables||||||
|Non-current|||for logistics parks construction and|||||
|Liabilities|||RMB 50 million for operation.|||||

5. Other Important Connected Transaction
(1) Related party transactions on Chixiao petroleum engineering contract commission of logistics warehouse building construction of area H
Which meet the needs of the South China Sea deepwater oil exploration logistics services and implement our business development strategy
established，by
the sixth session of the seventh meeting of the Board of Directors for consideration and approval, the company agreed to
choose，a
wholly owned subsidiary of the controlling shareholder of Shenzhen Nanshan
Group，Chixiao
petroleum Engineering Construction Co., as the contractor logistics warehouse H zone A and B block building block in floor
construction，including
construction, steel, electrical, fire protection and other projects. Oil logistical H Zone A transaction amount is 19.16 million as well as B plots the transaction amount of RMB 2.6 million, totaling 21.76 million. Currently H Zone A block has been completed, B block is under construction, planned for completion in April 2014.
(2) Entrusted with the operation related party transactions on Hefei Baowan Limited Logistics Park project Hefei Baowan international logistics center was invested by the controlling shareholder of Nanshan Group, which is positioned as an international logistics business complex projects, including warehousing and logistics park project, the international exhibition and trade center of high-end goods, logistics base for corporate headquarters and other business models, and warehousing and logistics parks businesses is similar with Baowan Holding business model. To avoid competition and improve BLOGIS nationwide network layout, approved by the sixth session of the Board of Directors the Sixteenth communication meeting, the Baowan holding was entrusted with the operation of, Nanshan Group's wholly-owned subsidiary,Hefei Baowan International warehouse logistics Park Project logistics Center Limited with the operation period from the date two parties signed contract until December 31, 2014. The two sides have signed the "Entrusted Management Agreement."
(3)The related transactions of Wuhan Baowan international logistics center steel containment system contract
To implement the company's business development strategy established and ensure Wuhan Baowan international
logistics center project to proceed smoothly, approved by the seventh session of the board of directors the first
tele-communication meeting and in 2013 first extraordinary general meeting, Wuhan Baowan one of the company
a wholly owned
subsidiary，appointed
commissioned Chixiao Engineering construction Co., Ltd. responsible for the construction task of Wuhan Baowan International logistics Center warehouse steel containment system with the contract price of RMB 29.32 million. And Wuhan Baowan Phase foundation construction is in progress, expected to be completed in November 2014.
(4)The related transactions of signing "Financial Services Agreement" with China Development Finance Company, Ltd
In order to broader financing channel and improve funds efficiency, approved by the second meeting of
7th board of Directors and the Second Extraordinaryshareholder’s Meeting in 2013, the Company agreed to make<Finance serviceagreement>with China Development company, during 3 years. The highest balance for the Company and its subsidiaries is within 1 billion RMB per day, while the deposit should stand no more than30% of the Finance company. The comprehensive credit line offered by the Finance company is 1 billion RMB for the Company and its branch.
On Jan 6, 2014, the Company and the Finance company have signed the contract. As the end of report period, the Company has no loan or deposit from the Finance company.
Disclosure of Important Connected Transaction
Please find the details in Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn
|||
|-|-|
|Announcement n|Disclosure Date|
|Resolution Announcement of 7th session for 6th Board|2013-03-27|
|Connected Transaction Announcement|2013-03-27|
|Resolution Announcement of 16th telecommunication meeting for 6th Board|2013-04-24|
|Entrusted Transaction Announcement|2013-04-24|
|Resolution Announcement of 1sttelecommunication meeting for 7th Board|2013-07-05|
|Connected Transaction Announcement for Wuhan Baowan|2013-07-05|
|Resolution Announcement of 1st Extraordinary Shareholders’ Meeting in 2013|2013-07-24|
|Progress Announcement|2013-07-29|
|Resolution Announcement of 2nd session for 7th Board|2013-10-30|
|Connected Transaction Announcement for Finance Service Agreement|2013-10-30|
|Announcement of 2nd Extraordinary Shareholders’ Meeting in 2013|2013-11-21|

VIII. Important Contracts and Implementation
1. Custodian, Contracting and Lease
See Section V 7 (5), (2) about related transactions of entrusted operation of Hefei Baowan international logistics center project. There is no contracting or lease of the Company.
2. Guarantee
Inapplicable.
3. Other Important Contracts
(1)The Project of Wuhan Yangluo Baowan
In order to strengthen Blogis layout in central China, the sixth session of the seventh meeting of the Board of Directors and 2012 Annual General Meeting have approved the proposal on Wuhan Yangluo Baowan logistics project, covering an area of 218 acres with the initial investment of RMB 218 million. To operate and manage the project, Baowan Holdings intends to register a new company with the name of Baowan Logistics (Wuhan) Yangluo Co., Ltd. and registration capital of 100 million.
Currently, the company has obtained its business license.
Please see March 27, 2013, May 21, 2013 and June 26, 2013, "Securities Times ", "Hong Kong Commercial Daily " and website of http://www.cninfo.com.cn information online of company announcements .
(2)The Project of Chongqing Banan Baowan Logistics Park
In order to improve the layout in Southwest China, the sixth session of the seventh meeting of the Board of Directors and 2012 Annual General Meeting have approved the proposal on Chongqing Banan Baowan logistics project, covering an area of 400 acres with the initial investment of RMB 474 million. To operate and manage the project, Baowan Holdings intends to register a new company with the name of Chongqing Banan Baowan International Logistics Co., Ltd and registration capital of 100 million.
Currently, the company has obtained its business license.
The details were published on Securities Times, Hong Kong Commercial Daily and website of http://www.cninfo.com.cn on March 27, 2013 and May 21, 2013.
(3)The Project of ChangshaWangcheng Baowan Logistics Park
In order to improve the layout in Central China, the seventh session of the second meeting of the Board of Directors has approved the proposal on ChangshaWangcheng Baowan logistics project, covering an area of 202 acres with the initial investment of RMB 219.51million. To operate and manage the project, Baowan Holdings intends to register a new company with the name of Changsha Wangcheng Baowan International Logistics Co., Ltd. (tentative name, specific to business registration) and registration capital of 100 million.
The details were published on Securities Times, Hong Kong Commercial Daily and website of http://www.cninfo.com.cn on October 30, 2013.
(4) The Project of Hefei Feidong Baowan Logistics Park
To further improve the middle network layout, the seventh session of the second meeting of the Board of Directors has approved the proposal on Hefei Feidong Baowan logistics project, covering an area of 280 acres with the initial investment of RMB 263.99million. To operate and manage the project, Baowan Holdings intends to register a new company with the name of BLOGIS Feidong Co. and registration capital of 100 million.
Currently, the company has obtained its business license.
The details were published on Securities Times, Hong Kong Commercial Daily and website of http://www.cninfo.com.cn on October 30, 2013 and January 7, 2014.
(5) Establishment of the Hong Kong subsidiary
To take the convenience Hong Kong financing rates, tax advantages, and to build overseas financing and investment platform, reducing consolidated financing costs, the seventh Board of Directors Second meeting has approved Baowan holdings to set up a wholly owned subsidiary in Hong Kong SAR with registered capital of 300,000.
Currently BLOGIS (Hong Kong) Limited has completed the registration in Hong Kong with "Certificate of Incorporation" and "business registration certificate."
The details were published on Securities Times, Hong Kong Commercial Daily and website of http://www.cninfo.com.cn on October 30, 2013 and January 28, 2014.
(6) The Project ofXi’an Lintong Baowan Logistics Park
To improve the layout in Northwestern China, the third tele-communication meeting of the seventh Board of Directors has approved the proposal onXi’an Lintong Baowan logistics project, covering an area of 400 acres with the initial investment of RMB 450 million. To operate and manage the project, Baowan Holdings intends to register a new company with the name ofXi’an Baowan International Logistics Co. Ltd and registration capital of 100 million.
Currently, the company has obtained its business license.
The details were published on Securities Times, Hong Kong Commercial Daily and website of http://www.cninfo.com.cn on December 25, 2013 and January 28, 2014.
IX、、、、Implementation
of commitments
The commitments of the Company or shareholders holding more than5% occurred during the reporting period but continued before or during the reporting period...
|||||||
|-|-|-|-|-|-|
|Commit||||||
||Promisee|Content|Beginning|Deadline|Status|
|ments||||||
||Nanshan|||Subsisting contract||
|||to land use|1997-7-18||On duty|
||Group|||period||
||Nanshan|to resolve payment difficulties in||Subsisting contract||
||||2012-5-11||On duty|
||Group|opening the Finance Limited||period||
|Other||to provide regular monthly financial||||
||The|||Subsisting contract||
|Commit||reports to the controlling|2007-10-25||On duty|
||Company|||period||
|ments||shareholder||||
||The|About the issue of "medium-term||Subsisting contract||
||||2012-3-7||On duty|
||Company|notes for 2012" Commitment||period||
||The|About the issue of "12 base debt"||Subsisting contract||
||||2012-12-17||On duty|
||Company|commitment||period||
|fulfill||||||
|commit||||||
||Yes|||||
|ments||||||
|timely||||||

The details were published on Securities Times, Hong Kong Commercial Daily and website of
http://www.cninfo.com.cn on December 25, 2013 and January 25, 2014.
XXXX.
Engagement/ Disengagement of Certified Public Accountants
Certified Public Accountants currently Engaged
|||
|-|-|
|Name|Deloitte Touche Tohmatsu Certified Public Accountants LLP|
|Remuneration (RMB Million)|10.27|
|Successive Years Offering Auditing Services|2|
|Names of the Certified Public Accountants|Li Weihua, Fang Shaofan|

Has the CPAs been changed in the report period
□Yes√ No
Description of the CPAs, financial adviser or sponsor engaged for internal control auditing.
√ Applicable□ Inapplicable
The Sixteenth Tele-communication Meeting of the Sixth Board of Directors and 2012 Annual General Meeting reviewed and approved to appoint Deloitte Touche Tohmatsu CPA to provide internal control audit service for the Company in 2013, with the remuneration of RMB 450,000.
XI. Punishment and Rectification
In the report period, there are no directors, supervisor and senior management receiving any kind of punishment from supervisory organizations.
XII. Others
The Company's shares of the company Shenzhen Chiwan Offshore Petroleum Equipment Repair Ltd. (hereinafter referred to as "CPEC") needs to change the name, the registered capital and business scope because of its business expansion. Please see the August 21, 2013, "Securities Times", "Hong Kong Commercial Daily" and of http://www.cninfo.com.cn information online company announcements.
XIII. Significant event of subsidiaries
Please see this part content of Important Contracts and Implementation.
XIV. Issuance of Corporate Bonds
On August 23, 2012, CSRC approved the Company to issue a seven-year corporate bond of RMB 570 million. On December 17, 2012, the Company issued the seven-year corporate bond of RMB 570 million with the interest of5.78%. The interest payment date is on every December 17, 2013-2017. On January 9, 2013, by the agreement of Shenzhen Stock Exchange, the corporate bonds are listed in Shenzhen Stock Exchange with the name of “12 Chiwan Base Corporate Bond” and code of “112140”. (Please find the details in the announcement disclosed on January 9, 2012 with the serial No. of 2013-03)
The Company has disclosed the rating report and entrusted management report for 2012 Corporate Bonds.
The Company has paid the interests for the CorporateBonds’ accounting period.
ⅥⅥⅥⅥ
PART . Changes in Capital Stock and Shareholders
I. Changes in Capital Stock
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before Changes||Changes in Shares（＋，－）|||||After Changes||
||||New|Bon|Conversio||Subtotal|||
|||||us|n of|Oth||||
||Shares|Ratio|Shares|||||Shares|Ratio|
|||||Sha|Reserves|ers||||
||||Issued|||||||
|||||res|to Shares|||||
|1.Non-tradable Shares|119,420,000|51.79%||||||119,420,000|51.79%|
|a. Promoters’ Shares||||||||||
||119,420,000|51.79%||||||119,420,000|51.79%|
|Including||||||||||
|Ownership by||||||||||
|Domestic Legal|119,420,000|51.79%||||||119,420,000|51.79%|
|Entities||||||||||
|2.Tradable shares|111,180,000|48.21%||||||111,180,000|48.21%|
|B shares|111,180,000|48.21%||||||111,180,000|48.21%|
|3.Total|230,600,000|100%||||||230,600,000|100%|

 II. Issuing and Listing
Issuing Activities over the Past Three Years
||||||||
|-|-|-|-|-|-|-|
|Description of stock|Issuing date|Issuing|Issuing quantity|Listing Date Q|uantity|Expiration date|
|and its Derivative||price||al|pproved for|of transaction|
|Securities|||||isting||
|Convertible Corporate Bonds, Detachable Convertible Bond and Corporate Bonds|||||||
|2012 Corporate Bonds|2012.12.17|100|570,000,000|2013.1.9|570,000,000||

III. Shareholders and Actual Controller
1. Number of Shareholders and Shares
Unit: Share
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Total number of|||||
|Total number of|||||||shareholders 5|||||
|shareholders at the end of||7,402|||||trading day before||7,052|||
|Year 2013|||||||annual report|||||
||||||||disclosure|||||
||Top Ten Shareholders|||||||||||
||||Nature||Total|Non-tradableshares||||Impawned or||
|||||Ratio||||Tradable||||
|Name|||||shares|||||Frozen Shares||
|||||（％）||||shares||||
||||||held|||||Shares|Number|
|CHINA NANSHAN|||Domestic Legal|51.79%|119,420,00|0 119,420,000||0||||

||||||
|-|-|-|-|-|
|DEVELOPMENT (GROUP)INCORPORATION|Person||||
|China Logistics Holding(12)PTE.LTD.|Foreign LegalPerson|19.90%|45,890,000|45,890,000|
|CHINA MECHANTSSECURITIES(HONGKONG) LTD|State-ownedLegal Person|1.44%|3,316,928|3,316,928|
|MATTHEWS CHINADIVIDEND FUND|Foreign LegalPerson|0.81%|1,861,968|1,861,968|
|GUOTAI JUNANSECURITIES(HONGKONG)LIMITED|Foreign LegalPerson|0.37%|845,680|845,680|
|WIM SUSTAINABLE SRIMASTER FUND|Foreign LegalPerson|0.36%|832,436|832,436|
|WU CHI LI|DomesticNatural Person|0.30%|681,720|681,720|
|CEDERBERG GREATER CHINAEQUITY MASTER FUND|Foreign LegalPerson|0.27%|622,642|622,642|
|CHINA INT'L CAPITAL CORPHONG KONG SECURITIES LTD|Foreign LegalPerson|0.26%|606,389|606,389|
|LI MING YA|DomesticNatural Person|0.25%|569,380|569,380|
|||Among the top ten shareholders, the domestic legal entity|||
|||shareholder, China Nanshan Development (Group) Incorporation|||
|||has no affiliated relations with other shareholders and does not|||
|Explanation for the Affiliated Relations or||fall into the scope of united action person stipulated by|||
|United Action of the Top Ten Shareholders||“Regulation of Information Disclosure of the Change of|||
|||Shareholding of listed company”. It is unknown that whether|||
|||other tradable-share shareholders fall into the scope of united|||
|||action person.|||

2. Controlling Shareholder
|||||||
|-|-|-|-|-|-|
||Legal|||||
|||Establishing|Organizatio|Register||
|Name|Representa||||Main Business|
|||Date|n Code|Capital||
||tive|||||
||||||Land development, port|
||||||service and transportation, as|
|China Nanshan||||||
|||September 28,||90000000|well as related industry,|
|Development (Group)|Fu Yuning||61883297-6|||
|||1982||0|commerce, real estate and|
|Incorporation||||||
||||||tourism and bonded|
||||||warehouse.|
|Operation result,financial||||||
||On December 31, 2013, Nanshan Group’ unaudited asset is RMB 20.85 billion, net|||||
|position,cash flow and||||||

|||
|-|-|
|future development|assets is RMB 8.9 billion, operating revenue is RMB 6.01 billion, total profit is|
|strategy,etc..|RMB 1.58 billion and cash flow from operating activities is RMB 24.28 million.|
||Future development: focusing on business development and capital increase,|
||becoming a leading group with brand influence.|
|Equity in other domestic||
|and foreign listed||
|companies held by the||
|controlling shareholder by|32.52% equity in Chiwan Wharf (000022) and 48.77% equity in Yahgee Modular.|
|means of control and||
|mutual shareholding in the||
|reporting period||

Change of Controlling Shareholder in the Report Period
□ Applicable√ Inapplicable
3. Actual Controller
|||||||
|-|-|-|-|-|-|
||Legal|||||
|||Establishing|Organizatio|Register||
|Name|Representativ||||Main Business|
|||Date|n Code|Capital||
||e|||||
||||||Land development, port|
||||||service and transportation, as|
|China Nanshan||||||
|||September 28,||90000000|well as related industry,|
|Development (Group)|Fu Yuning||61883297-6|||
|||1982||0|commerce, real estate and|
|Incorporation||||||
||||||tourism and bonded|
||||||warehouse.|
|Operation|On December 31, 2013, Nanshan Group’ unaudited asset is RMB 20.85 billion, net|||||
|result,financial|assets is RMB 8.9 billion, operating revenue is RMB 6.01 billion, total profit is RMB|||||
|position,cash flow and|1.58 billion and cash flow from operating activities is RMB 24.28 million.|||||
|future development|Future development: focusing on business development and capital increase, becoming|||||
|strategy,etc..|a leading group with brand influence.|||||
|Equity in other domestic||||||
|and foreign listed||||||
|companies held by the||||||
|controlling shareholder|32.52% equity in Chiwan Wharf (000022) and 48.77% equity in Yahgee Modular.|||||
|by means of control and||||||
|mutual shareholding in||||||
|the reporting period||||||

Change of Actual Controller in the Report Period
√ Applicable □Inapplicable
Chart of Actual Controller and the Company
State-Owned Assets
Supervision and
Administration Commission
of the State Council
100％
China Merchants Group State-Owned State-Owned China National Offshore Oil
Assets Assets Corporation
55.10％
Supervision and Supervision 100％
Administration and
Commission of Administration
China Merchants Holdings
Shenzhen Commission of
(International) Company
Municipal Guangdong
Limited
Government Province
100％ 100％ 100％
China Silverflow Shenzhen Guangdong China China HK Clifford Merchants Co., Ltd. Investment Petro-Trade National Ocean Wong (Nanshan) Holdings Developmen Offshore Oilfields Investment Holdings Co., Ltd. t Corporation Oil Services Co.,Ltd Ltd Investment (Hong
Co.,Ltd Kong)
Limited
(COOS)
0.50% 1.64%
36.52%
26.10% 23.49%
7.83%
3.92% China Nanshan Development (Group) Incorporation
51.79%
Tradable
Shenzhen Chiwan Shenzhen Chiwan Petroleum Supply Base Co. Ltd. 48.21%
Shareholders (B Shares)
Actual Controller controlled the Company by trust or other asset management method.
□ Applicable √ Inapplicable
4. Other shareholders with more than10% shares.
|||||||
|-|-|-|-|-|-|
||||Organization|Registered||
|Shareholder’s Name|Legal Representative|Establishing Date|||Main Business|
||||Code|Capital||
|CHINA LOGISTICS||||||
||Schwartz Jeffrey|||||
|HOLDING(12) PTE.||2010.11.11||100 USD|Investment|
||Howard|||||
|LTD||||||

ⅦⅦⅦⅦ
PART . Directors, Supervisors, Senior Management and Staff I. Changes of Shares held by Directors, Supervisors and Senior Management
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Shares|||Shares|
||||||Starting Date|Expiry Date of|Held on|||Held on|
|Name|Position|Office Status|Gender|Age||||Increase|Decrease||
||||||of Tenure|Tenure|Jan 1,|||Dec 31,|
||||||||2013|||2013|
|Tian Junyan|Chairman|In Office|Male|52|2013.5.|2016.5.|0|0|0|0|
||Vice||||||||||
|Ming Zhi Mei||In Office|Male|41|2013.5.|2016.5.|0|0|0|0|
||Chairman||||||||||
|Fan Zhaoping|Director|In Office|Male|60|2013.5.|2016.5.|11,600|0|0|11,600|
|Liu Wei|Director/ GM|In Office|Male|48|2013.5.|2016.5.|55,900|0|0|55,900|
|Kent Yang|Director|In Office|Male|45|2013.5.|2016.5.|0|0|0|0|
|Ren Yongping|Director|InOffice|Male|61|2013.5.|2016.5.|118,000|0|28,000|90,000|
|Shu Qian|Director|In Office|Male|36|2013.5.|2016.5.|0|0|0|0|
||Independent||||||||||
|He Liming||In Office|Male|60|2013.5.|2016.5.|0|0|0|0|
||Director||||||||||
||Independent||||||||||
|Chen Weijie||In Office|Male|63|2013.5.|2016.5.|0|0|0|0|
||Director||||||||||
||Independent||||||||||
|Chen Shujun||In Office|Male|46|2013.5.|2016.5|0|0|0|0|
||Director||||||||||
||Independent||||||||||
|Yu Xiufeng||In Office|Male|49|2013.5.|2016.5.|0|0|0|0|
||Director||||||||||
||Supervisor||||||||||
|Zhang Jianguo||In Office|Male|49|2013.5.|2016.5.|0|0|0|0|
||Convenor||||||||||
|Chen Hong|Supervisor|In Office|Male|54|2013.5.|2016.5.|0|0|0|0|
|Li Hongwei|Supervisor|In Office|Male|46|2013.5.|2016.5.|0|0|0|0|
|Chen Lei|Supervisor|In Office|Male|37|2013.5.|2016.5.|0|0|0|0|
|Sun Yuhui|Supervisor|In Office|Male|39|2013.5.|2016.5.|0|0|0|0|
|Huang|||||||||||
|||||57|2013.5.|2016.5.|0|0|0|0|
|Ronghui|||||||||||
|Wang|||||||||||
||Deputy GM|In Office|Male|56|2011.2.|until now|0|0|0|0|
|Jianjiang|||||||||||
||Deputy GM/||||||||||
|Yu Zhongxia|Financial|In Office|Female|50|2011.11.|until now|65,182|0|0|65,182|
||Controller||||||||||
|Fu Jialin|Deputy GM|In Office|Male|52|2011.11.|until now|71,100|0|0|71,100|
||Board||||||||||
|Song Tao||In Office|Male|35|2012.3.|until now|0|0|0|0|
||Secretary||||||||||
|Han Guimao|Director|Off Office|Male|63|2010.5.|2013.5.|10,000|0|0|10,000|
|Lin Shaodong|Independent|Off Office|Male|68|2010.5.|2013.5.|0|0|0|0|
|Zhang Limin|Independent|Off Office|Male|58|2010.5.|2013.5.|0|0|0|0|
|Zhou|Independent||Male||||||||
|||Off Office||59|2010.5.|2013.5.|0|0|0|0|
|Chengxin|||||||||||
|Cui Zhongfu|Independent|Off Office|Male|52|2010.5.|2013.5.|0|0|0|0|
||Supervisor||Female||||||||
|Guo Songhua||Off Office||56|2010.5.|2013.5.|0|0|0|0|
||Convenor||||||||||
|Kong Peng|Supervisor|Off Office|Male|41|2010.5.|2013.5.|0|0|0|0|
|Sun Wujiang|Supervisor|Off Office|Male|46|2010.5.|2013.5.|0|0|0|0|
|Total|--|--|--|--|--|--|331,782|0|28,000|303,782|

 II. Posts
Work Experience in the Past Five Years of Directors, Supervisors and Senior Management in Current Office
Chairman: Mr. Tian Junyan, master degree in management of Huazhong University of Science and Technology.
He was once the associate professor of School of Management of Huazhong University of Science and Technology. Since 1996, he had successively served the posts of manager of research&development department and the Executive Senior Vice President of Nanshan Group. Mr. Tian has been the Director since 2010 May, Now he is the President of Nanshan Group and Chairman of the Seventh Board of Directors of the Company.
Vice Chairman: Mr. MingZhi Mei, has bachelor degree in finance of Indiana University and MBA of Northwestern University and The Hong Kong University of Science and Technology. Since 1996, he occupied important positions in the departments of finance, manufacture, sales, market, strategic planning and integrated management of Owens Corning. He joined ProLogis in 2003. At present he is the jointed founder and CEO of Global Logistic Properties and the vice chairman of the Seventh Board of Directors of the Company.
Director: Mr. Fan Zhaoping, bachelor degree in economics of China Finance College and master degree in economics in the Research Institute of the Ministry of Finance of China. Mr. Fan has successively held the posts as the financial manager and supervisor of the Company and he worked as the financial and investment manager and of China Nanshan Development (Group) Incorporation in 1991. At present, he is Senior Vice President of Nanshan Group and the Director of the Seventh Board of Directors of the Company.
Director/GM: Liu Wei has Master degree of logistics and supply chain management of Chinese University of Hong Kong. Mr. Liu has served the posts as manager of the Business Development Department of the Company, the deputy GM of Shanghai Baowan, manager of Logistics Business and General Manager of Offshore Oil Logistics Service Division of the Company, Deputy GM and Executive Deputy GM of the Company. He also was the supervisor of the Fifth Board of Supervisors. At present, he is GM of the Company since March 2012 and Director since June 2012.
Director: Mr. Kent Yang, American, has bachelor degree in architecture of University of California, Los Angeles and master degree in real estate development of Columbia University. He was the directing designer in Mark Lintott Design in 1993; professional consultant in Colliers Jardine in 1996; special assistant to Chairman and General Manager-China in Taiwan Fu Ji Manufacture Co., Ltd. since 1997; General Manager in Wuxi Huayang High Tech Investment Co.,. He was the General Manager of GLP Park Lingang in 2005 and First Vice President of Global Logistic Properties in 2007. At present, he is the president of China region of Global Logistic Properties and director of the Seventh Board of Directors of the Company.
Director: Mr. Ren Yongping, graduated from China Finance College. Since 1982, he worked in Tax Bureau of Hebei Province and successively held the posts of Financial Manager in Chiwan Warf, GM of Chiwan Foodstuff Port and GM of Chiwan Warehouse Co. He was the director of the Fifth Board. He was the Deputy GM of the Company from April 2004 to January 2013. Due to age reason, he retired the position as Deputy GM of the Company in January 2013. At present, he is director of the Seventh Board of Directors of the Company.
Director: Mr. Shu Qian, graduated from Hunan Institute of Finance (merged Hunan University in 2000) accounting major, in 2004 obtained a master degree in economics from University Rotterdam, the Netherlands maritime and logistics expertise. Since 2000, has served as International Freight Forwarding Co., Ltd. Shenzhen Chiwan accounting, financial vice president, Head of Sales Department in Shenzhen Chiwan Wharf Holdings Limited , Assistant General Manager of Research and Development Department, Vice President. of China Nanshan Development (Group) Co., Ltd., The current general manager of Research and Development Department of Nanshan Development (Group) Co., Ltd. And he has served as a director of the Company since May 2013. Independent Director: Mr. He Liming, graduate degree, master's degree, senior economist. He was Former Deputy Director of the Materials Department, the Personnel Division of the Ministry of Domestic Trade, general manager of China Nonferrous Metal Materials Corporation, Vice President and Secretary General, Executive Vice
President of the China Federation of Logistics and Purchasing. At present, he is president of the China Federation of Logistics and Purchasing / party secretary, president of the China Society of Logistics, president of the China Automobile Dealers Association, the president of China International Trade Promotion logistics industry branch, the chairman of the Asia Pacific Logistics Alliance, the International Alliance Director of Purchasing and Supply Management. In May 2013 he has served as an independent director of the Company.
Independent Director: Mr. Chen Weijie, a professor-level senior economist. The manager of the Eastern Oil Company CNOOC Nanhai Finance Department, Finance Department Manager of CNOOC Shenzhen Branch; CACT Operators Group president; General Manager of China National Offshore Oil Corporation, the Ministry of Planning; deputy general manager of CNOOC Shenzhen Branch, deputy party secretary. Deputy director of the Professional Committee of China's economy Petroleum Institute; CNOOC / Shanghai Jiaotong University Engineering Research Center member technical committee of new energy; Vice Chairman of Tianjin Intercity Railway Co. ; vice chairman of Tianjin Binhai New Area high-tech development company . In May 2013 he has served as an independent director of the Company.
Independent Director: Mr. Chen Shujun, Master Degree of Business Administration in Finance Chinese University of Hong Kong, Master Degree of AccountingCity University of Hong Kong International, Bachelor of Laws degree from Tsinghua University (Adult Education). Senior Accountant, CPA China, Chinese Certified Tax Agents, judicial experts, national legal professional qualifications; second session of the Conference of Guangdong Provincial People's Congress Standing Committee of the legislative consultants, CPAs fifth Association of Guangdong Province, Shenzhen Municipal Government Procurement Finance Committee review experts, technology experts, Shenzhen Science and Technology Committee of experts, eighth accounting Association, Shenzhen concurrently accounting Standards expert Committee, vice chairman of the enterprise, small and medium firms, Shenzhen development Committee five AICPA members. Former Guangzhou CPA auditor, manager; in 1998 served as Guangshen CPA (general partner) Managing Partner, Forensic Accounting Guangdong Guangzhou-Shenzhen as the legal representative; also served in Shenzhen China Bicycle Company (Holdings) Co., Ltd. independent directors. In May 2013, he has served as an independent director of the Company.
Independent Director: Mr. Yu Xiufeng, senior partner of Beijing DeHeng (Shenzhen) Law Office, Doctor degree of Law School of Jilin University, School of Economics doctoral of Jilin University, studied in Waseda University Faculty of Law. Shenzhen Fifth People's Congress legislative consultant, the fourth and fifth deputies of Shenzhen City, the fourth and fifth members of the NPC Law Committee, the decision-making advisory committee of Shenzhen, the Shenzhen Municipal People's Government (Legislative Affairs) legal Expert Advisory Committee, the China International Economic and Trade Arbitration Commission, South China International Economic and Trade Arbitration Commission (Shenzhen International Court of Arbitration) arbitrators, South China International Economic and Trade Arbitration Commission (Shenzhen International Court of Arbitration) Mediation Center mediation experts, China International Trade Arbitration Commission Shanghai Branch arbitrator of China International Economic and Trade Promotion Committee of mediation experts, Shenzhen Arbitration Commission, the Shenzhen Municipal People's Congress Cadre Training Center professor, Shenzhen City Law Sixth Council executive director and vice chairman of Shenzhen International Chamber of Commerce, Vice President of Shenzhen International Chamber of investment and financing, honorary president of the Federation of Hong Kong SMEs, Jilin Chamber of Commerce executive vice president of Shenzhen, Peking University Law School, a part-time tutor, Northeast University of Finance and a part-time tutor of Law, China University of Politics and Law in Asia Research Center, researchers Visiting Professor of Law, Nanjing University, Institute for Crime Prevention and Control, Zhejiang University, Master of Law, Shenzhen University campus mentor. Squire Sanders also any medicine, Han's Laser independent directors. May 2013, he has served as an independent director of the Company.
Convener of the Board of Supervisors: Mr. Zhang Jianguo, Bachelor of Shanxi University of Accounting. He served Chiwan Wharf Holdings Limited as Financial Manager, Chief Financial Officer and Vice President. At present, he is the CFO of d Nanshan Group and has served as the convener of the Board of Supervisors of the Company since May 2013.
Mr. Chen Hong, senior engineer, graduated from East China Institute of Water Conservancy, 2001, served as deputy general manager of Shenzhen Haiqin Engineering Co., Ltd., China Nanshan Development (Group) Co., Ltd., deputy chief engineer of the China Nanshan Development (Group) Co., Ltd. Chief Engineer. He has served as supervisor of the Company since June 2012.
Supervisor: Mr. Li Hongwei, has doctor degree in system engineering of South China University of Technology. He successively held the posts of manager, board secretary, director and deputy GM of Chengdu Galaxy Power Co., Ltd. since 1989. He was the board secretary and deputy GM of Shenzhen Seg Dasheng Co., Ltd. since 2001. He was deputy GM and GM of Business Management Department of China Nanshan Development (Group) Incorporation in 2006. Now he is COO of Nanshan Group. He has served as supervisor of the Company since April 2011.
Supervisor: Mr. Chen Lei, has bachelor degree in international finance of Shanghai Jiao Tong University and MBA of University of Southern California. He is CPA and CTA of China. He was the auditor of Ernst& Young in 1998 and finance manager of Shanghai New International Expo Center in 2001. At present, he is Senior Vice President of Global Logistic Properties and the supervisor of the Seventh Board of Supervisors of the Company. Employee Supervisor: Ms Sun Yuhui, bachelor degree in Economics, Lanzhou University, accountants of Chinese Certified Tax Agents. Since August 2003, she worked as supervisor of financial department in Nanshan Group. Since July 2010, she has Served Shenzhen Nanshan Real Estate Development Co., Ltd as deputy manager/manager of Finance Department. At present, she is the financial manager of the Company and the supervisor of the Company since May 2013.
Employee Supervisor: Mr. Huang Ronghui, graduated from Guangdong Communication Polytechnic road machinery. Served supervisor, warehouse manager, assistant general manager of the warehouse department of Shenzhen Chiwan Warehouse Limited (now called Shenzhen Baowan since April 1990). At present, he is the Assistant GM for Company's petroleum logistics division and supervisor of the Company.
Deputy GM/Chief Engineer: Mr. Wang Jianjiang, has doctor degree of Hydraulic Structure Engineering of Wuhan Water Resources and Electric University. He worked in Xinjiang Shihezi University (the original Shihezi Agricultural College) from Mar 1985 to Aug 1992. He studied in Wuhan Water Resources and Electric University from Sept 1992 to June 1995 and got doctor degree of Hydraulic Structure Engineering. Since 1996, he worked in planning department, office of general engineer and department of planning and construction management of China Nanshan Development (Group) Incorporation as engineer, assistant manager and department manager successively. He is Deputy GM& Chief Engineer of the Company since February 2011.
Deputy GM& CFO: Mdm. Yu Zhongxia, has bachelor ofShan’xi Finance and Economics College with the qualification of Accountant and senior international financial manager. Mdm. Yu has taught atXi’an Road Management College. She joined the Company in 1992 and held the posts of Financial Manager Assistant, Financial Manager of CSE, System/Audit Manager Assistant, Deputy Financial Manager, Financial Manager, Assistant GM, Deputy CFO and CFO. She is Deputy GM& CFO of the Company since November 2011.
Deputy GM: Mr. Fu Jialin, has graduated at Beijing University of Aeronautics and Astronautics in 1982 and has had master degree of University of Alberta in Canada in 1993. He had been the Assistant GM of development and research department of Nanshan Group, deputy manager of Chixiao Component Houses Co Ltd, and GM of
Dongguan Nanshan Construction Material Co Ltd. He is Deputy GM since November 2011.
Board Secretary: Mr. Song Tao, has bachelor degree of International Finance of Dalian University of Technology and master degree of Technology and Economic Management of Hebei University of Technology. He held the posts of finance supervisor and Deputy Manager of finance department in Shenzhen Baowan in April 2004. From April 2005 to March 2012, he was the Securities Representative of the Company. At present, he is the Board Secretary and Manager of Investment Department of the Company.
Posts inShareholder’s Company
√ Applicable □ Inapplicable
||||||
|-|-|-|-|-|
|||||Whether receiving|
||||Office||
|Name|Company Name|Position||remuneration from|
||||Term||
|||||shareholder|
|Tian|CHINA NANSHAN DEVELOPMENT||||
|||President|2011.01.04.|Yes|
|Junyan|(GROUP) INCORPORATION||||
|Fan|CHINA NANSHAN DEVELOPMENT||||
|||Senior Vice President|1998.12.08.|Yes|
|Zhaoping|(GROUP) INCORPORATION||||
|Ren|CHINA NANSHAN DEVELOPMENT|Senior Financial|||
||||2013.01.08.||
|Yongping|(GROUP) INCORPORATION|Consultant|||
||CHINA NANSHAN DEVELOPMENT|GM of Research and|||
|Shu Qian|||2012.11.23.|Yes|
||(GROUP) INCORPORATION|Development Department|||
|Zhang|CHINA NANSHAN DEVELOPMENT||||
|||Financial Controller|2013.01.01.|Yes|
|Jianguo|(GROUP) INCORPORATION||||
||CHINA NANSHAN DEVELOPMENT||||
|Chen Hong||Chief Engineer|2007.09.12.|Yes|
||(GROUP) INCORPORATION||||
|Li|CHINA NANSHAN DEVELOPMENT||||
|||Chief Operating Officer|2014.02.21.|Yes|
|Hongwei|(GROUP) INCORPORATION||||

III. The Remuneration of Directors, Supervisors and Senior Management
Decision-making procedures, basis for determination and actual payment of the remuneration to directors, supervisors and senior management
1. Independentdirectors’ allowance is approved by GeneralShareholders’ Meeting. The remuneration of senior management is approved by Board of Directors. IndependentDirectors’ allowance is RMB 100,000 per year 2. Senior management is appointed by the Board of Directors. Remuneration standard for senior management is decided by their abilities, performance, etc.
3. Directors, Supervisors and Senior Management will be paid monthly and the rest bonus will be decided by their abilities, performance, etc.
Remuneration to directors, supervisors and senior management in the report period
Unit: RMB 0,000
||||||||
|-|-|-|-|-|-|-|
|||||||Actual|
|||||Remuneration|Remuneration||
|||||||Remuneration|
|Name|Position|Gender|Office Status|from the|from||
|||||||at the end of|
|||||Company|Shareholder||
|||||||report period|
||President of||||||
|Tian junyan||Male|In Office|0|149|101|
||Director||||||

||||||||
|-|-|-|-|-|-|-|
|Ming Zhi Mei|Vice Chairman|Male|In Office|0|0|0|
|Fan Zhaoping|Director|Male|In Office|0|128|86|
|Liu Wei|Director/ GM|Male|In Office|102.83|0.00|77.65|
|Kent Yang|Director|Male|In Office|0|0|0|
|Ren Yongping|Director|Male|In Office|58.66|21.16|68.53|
|Shu qian|Director|Male|In Office|0|29.75|18.97|
||Independent||In Office||||
|He liming||Male||5.835||5.835|
||Director||||||
||Independent||In Office||||
|Chen weijie||Male||5.835||5.835|
||Director||||||
||Independent||In Office||||
|Chen shujun||Male||5.835||5.835|
||Director||||||
||Independent||In Office||||
|Yu xiufeng||Male||5.835||5.835|
||Director||||||
||Supervisor||In Office||||
|Zhang jianguo||Male||0|31.5|19.38|
||Convenor||||||
|Chen hong|Supervisor|Male|In Office|0|83|56|
|Li weihong|Supervisor|Male|In Office|0|62|40|
|Chen lei|Supervisor|Male|In Office|0|0|0|
|Sun yuhui|Supervisor|Female|In Office|15.91|0|0|
|Huang ronghui|Supervisor|Male|In Office|8.99|0|5.52|
|Wang Jianjiang|Deputy GM|Male|In Office|76.47|0|57.18|
||Deputy GM/||||||
|Yu Zhongxia|Financial|Female|In Office|77.1|0|58.2|
||Controller||||||
|Fu Jialin|Deputy GM|Male|In Office|75.8|0.00|57.26|
||Board||||||
|Song Tao||Male|In Office|37.44|0.00|28.93|
||Secretary||||||
|Han guimao|Director|Male|Out of term|0|31.25|23.33|
||Independent||||||
|Lin shaodong||Male|Out of term|4.17|0|4.17|
||Director||||||
||Independent||||||
|Zhang limin||Male|Out of term|4.17|0|4.17|
||Director||||||
||Independent||||||
|Zhou chengxin||Male|Out of term|4.17|0|4.17|
||Director||||||
||Independent||||||
|Cui zhongfu||Male|Out of term|4.17|0|4.17|
||Director||||||
||Supervisor||||||
|Guo songhua||Female|Out of term|0|30|22.08|
||Convenor||||||
|Kong peng|Supervisor|Male|Out of term|25.51|0|21.2|
|Sun wujiang|Supervisor|Male|Out of term|17.1|0.00|13.95|
|Total|--|--|--|535.83|570.66|806.28|

 Note: 1.Payment period refers to the office term.
2.The remuneration of directors, supervisors and senior management from the Company and shareholder includes the following items: basic salary, bonus, allowance, welfare, insurance paid by the Company and individual, etc. Actual Remuneration refers to actual payments from the Company and the Shareholder.
Incentive equity to directors, supervisors or/and senior management in the report period.
□ Applicable√ Inapplicable
IV. Changes of Directors, Supervisors and Senior Management
||||||
|-|-|-|-|-|
|Name|Post|Type|Date|Reason|
|Ren Yongping|Deputy GM|Resigned|2013.1.9|Retirement|

||||||
|-|-|-|-|-|
|Fan Zhaoping|Director|Term expiration|2013.5.20|Change of the Board of Directors|
|Han Guimao|Director|Term expiration|2013.5.20|Change of the Board of Directors|
|Lin Shaodong|Independent Director|Term expiration|2013.5.20|Change of the Board of Directors|
|Zhang Limin|Independent Director|Term expiration|2013.5.20|Change of the Board of Directors|
|Zhou Chengxin|Independent Director|Term expiration|2013.5.20|Change of the Board of Directors|
|Cui Zhongfu|Independent Director|Term expiration|2013.5.20|Change of the Board of Directors|
|Guo Songhua|Supervisor Convenor|Term expiration|2013.5.20|Change of the Board of Supervisors|
|Kong Peng|Supervisor|Term expiration|2013.5.20|Change of the Board of Supervisors|
|Sun Wujiang|Supervisor|Term expiration|2013.5.20|Change of the Board of Supervisors|
|Tian Junyan|President of Director|elected|2013.5.20|Change of the Board of Directors|
|Shu Qian|Director|elected|2013.5.20|Change of the Board of Directors|
|He Liming|Independent Director|elected|2013.5.20|Change of the Board of Directors|
|Chen Weijie|Independent Director|elected|2013.5.20|Change of the Board of Directors|
|Chen Shujun|Independent Director|elected|2013.5.20|Change of the Board of Directors|
|Yu Xiufeng|Independent Director|elected|2013.5.20|Change of the Board of Directors|
|Zhang Jianguo|Supervisor Convenor|elected|2013.5.20|Change of the board of Supervisors|
|Sun Yuhui|Supervisor|elected|2013.5.20|Change of the board of Supervisors|
|Huang Ronghui|Supervisor|elected|2013.5.20|Change of the board of Supervisors|

V. About Staff
At the end of December 31, 2013, the number of employees is 532 and of which 276 is with College Degree or above. The number of retiree which the Company needs to pay salary is 1.
1. Job Structure
||||||
|-|-|-|-|-|
|Job Composition|Manufacturing|Sales|Technical|Financial|
||Employee|Employee|Employee|Employee|
|Number|317|57|28|44|

2. Remuneration Policy for Staff
In the report period,staff’s salary was paid monthly according to theCompany’s related regulation. At the end the year, bonus was paid by theCompany’s profitability andstaff’s performance.
3. Training Program
In the report period, the Company had organized internal training 137 times and trainees of 685 persons, in which for managers of 219 and for other staff of 466.
(1) To revise the training regulation, specify the management process and evaluate the training results.
(2) The training for level employees focused on improving its operation ability, service and safety awareness and
encouraged them to get qualification certificate. For middle and senior management, the Company focused on
establishing a e-learning platform for them to develop leadership.
ⅧⅧⅧⅧ
PART . Corporate Governance
ⅠⅠⅠⅠ.
Corporate Governance
During the report period, the Company had continuously observed Company Law, Securities Law, and Guidelines of Corporate Governance for Listed Company and relevant regulations to improve and enhance its corporate governance.
1. Non-normative Corporate Governance
According to the requirements of Ministry of Finance and Accounting Standards for Enterprises, the Company provided financial reports monthly to its controlling shareholders, Nanshan Group, for compiling consolidated financial statements. In accordance with requirements of the Supplementary Notice on Strengthened Supervision of Non-Standard Behaviors in Corporate Governance Including Providing Undisclosed Information to Controlling Shareholders and Effective Controller, the Board of Directors reviewed and approved the Resolution on Regular Submission of Financial Statements to the Controlling Shareholders on the Second Tele-communication Meeting of the Fifth Board of Directors. Nanshan Group and the Company signed the commitment letter respectively, and the Company provided theinsiders’ list to CSRC Shenzhen Bureau for record as well.
In the report period, the Company submitted 12 financial reports to Nanshan Group on date of 8 to 15 of every month. It also recorded the Information Form for Undisclosed Information in terms of timeliness, accuracy and integrity.
Does there exist any difference in compliance with the corporate governance, the PRC Company Law and the relevant provisions of CSRC.
□ Yes√ No
There exist no difference in compliance with the corporate governance, the PRC Company Law and the relevant provisions of CSRC.
2. Special Activities of Corporate Governance and Preparation and Implementation of the Registration Management System for Insiders
On October 28, 2009, the Seventh Session of the Fifth Board of Directors reviewed and approved the registration system of undisclosed information insiders. (Please find the details on www.cninfo.com.cn on October 30, 2009) In the report period, the Company strictly implemented the registration system, registered the insiders timely. In the report period, directors, supervisors and the senior management of the Company did not buy or sell shares against regulations.
II. Annual General Meeting and ExtraordinaryShareholders’ Meetings in the Report Period 1. Annual General Meeting in the Report Period
|||||||
|-|-|-|-|-|-|
|Sessions|Meeting|Description of Proposals|Resolution|Disclosure|Disclosure Index|
||Date|||Date||
|||Work Report of the Board of||||
||||||2013-23 Resolutions of|
|2012 Annual||Directors in 2012, Work Report of||||
||||Reviewed and||2012 Annual General|
|General|2013.5.20|the Board of Supervisors in 2012,||2013.5.21||
||||Approved||Meeting|
|Meeting||The Proposal on Electing Director||||
||||||(www.cninfo.com.cn)|
|||of the Board of Directors, The||||

||
|-|
|Proposal on Electing Supervisor of|
|the Board of Supervisors, Financial|
|Report in 2012, Dividend|
|Distribution Scheme for Year|
|2012, The Proposal on|
|Appointment of Accounting Firm|
|for Year 2013, The Proposal on|
|Appointment of Accounting Firm|
|for Internal Control Audit for Year|
|2013, Proposal on the authorized|
|management team of financial|
|institutions financing within RMB|
|three billion (or its equivalent in|
|foreign currency quota ), Proposal|
|of newly-founded companies use|
|short-term idle funds to purchase|
|financial products,The Proposal on|
|Wuhan Yangluo Baowan Logistics|
|Park, The Proposal on Chongqing|
|Banan Baowan Logistics Park|

2. ExtraordinaryShareholders’ Meetings in the Report Period
|||||||
|-|-|-|-|-|-|
|Sessions|Meeting Date|Description of|Resolution|Disclosure Date|Disclosure Index|
|||Proposals||||
|||"On guarantees to||||
|||subsidiaries in||||
|||Guangzhou BLOGIS|||2013-33|
|||Ltd and Nanjing|||Resolutions of|
|First||Treasure Bay|||First|
|Extraordinary||International|Reviewed and||Extraordinary|
||2013.7.23|||2013.7.24||
|Shareholders’||Logistics Co., Ltd.",|Approved||Shareholders’|
|Meeting in 2013||"On an international|||Meeting in 2013|
|||logistics center|||( www.cninfo.co|
|||Wuhan Baowan steel|||m.cn)|
|||enclosure||||
|||construction contracts||||
|||related trade bill."||||
||||||2013-45|
|||"On signing||||
||||||Resolutions of|
|||<Financial Services||||
|Second|||||Second|
|||Agreement> Finance||||
|Extraordinary|||Reviewed and||Extraordinary|
||2013.11.20|Limited and the||2013.11.21||
|Shareholders’|||Approved||Shareholders’|
|||opening motion of||||
|Meeting in 2013|||||Meeting in 2013|
|||related party||||
||||||(www.cninfo.com|
|||transactions."||||
||||||.cn)|

ⅢⅢⅢⅢ.
Performance of Independent Directors
1. Attendance of Board Meeting andShareholders’ Meeting
||||||||
|-|-|-|-|-|-|-|
|Attendance of Board Meeting|||||||
||Meetings|Attendance in|Attendance by|Attendance by||Non-attendanc|
|Name|||||Absence rate||
||required to be|person|facsimile|proxy||e in person for|

||||||||
|-|-|-|-|-|-|-|
||present|||||two|
|||||||consecutive|
|||||||times|
|Lin Shaodong|2|1|1|0|0|N/A|
|Zhang Limin|2|1|1|0|0|N/A|
|Zhou Chengxin|2|1|1|0|0|N/A|
|Cui Zhongfu|2|1|1|0|0|N/A|
|He Liming|5|1|3|1|0|N/A|
|Chen Weijie|5|2|3|0|0|N/A|
|Chen Shujun|5|2|3|0|0|N/A|
|Yu Xiufeng|5|2|3|0|0|N/A|
|Number of Shareholders’ Meeting|||||||
|||3|||||
|Attended|||||||

Note: In May 2013, the Board conducted a general election.
2. Objection of Independent Directors on Some Relevant Issues
Objection of independent directors on some relevant issues
□ Yes √ No
Independent directors proposed no objection against the relevant matters in the report period.
3. Other Note to the Performance of Independent Directors
During the reporting period, the independent directors of the Company in strict accordance with relevant laws, regulations and the "Articles of Association", fully concerns the company operates and independently performs their duties, which affected the company's systems to improve decision-making and other aspects of daily operations. They made many valuable professional advices on the matters requiring the independent directors of the Company during the reporting period to comment on the issue of independence, impartiality advice for improving corporate oversight mechanisms to safeguard the legitimate interests of the company and all its shareholders to play its due role.
IV. Performance of Special Committees under the Board of Directors in the Report Period 1. Performance of Audit Committee
(1) Reviewing the financial report and presenting written opinion.
According to relevant regulations, the Audit Committee reviewed the financial report and presented written opinion: the Company strictly implemented Articles of Association and other regulations and ensured the objectivity and authenticity of financial report.
After the auditor submitted the draft of audit report, the committee reviewed the finance report and presented
written opinion. The compiling basis, principles and method of financial report followed the relative regulations
and fairly reflected the financial status and operation results of the Company in Year 2013.
(2) Maintaining regular communication with auditors and following progress of auditing closely.
In the audit period, the committee maintained regular communication with financial department, followed the progress of auditing closely and held a meeting discussed with the auditors about auditing plan, scope, focus points and the incurred problems and resolutions.
(3) Summarizing theauditor’s work
The committee summarized the work of auditor and thought that they completed the annual audit work in plan. (4) Opinions on hiring an accounting firm
Deloitte Touche Tohmatsu Limited recommends hiring Company 2013 annual audit and internal control mechanism accounting firm.
2. Performance of Nomination and Remuneration Committee
(1)During the period, the committee reviewed board
nominator、independent
board nominator, and approved to submit the board of Director andshareholders’ meeting.
(2) During the period, the committee reviewed salary of senior managers, and published the opinion on senior manager compensation for year 2012.
3 Strategy and Development committee
During the period, the committee deliberate over<5 years schematizationreport>, approving to hand over the board of Director
V. Work of the Board of Supervisors
Did the Board of Supervisors find any risk existing in performing the supervision activities in the report period?□ Yes√No
The Board of Supervisors has no objection against any matters under supervision in the report period. The Board of Supervisors had supervised theCompany’s management and business operation and ensured that these activities were legitimate. The Company established internal control system. The meeting also confirmed that neither the directors nor senior management had acted in contravention of laws, regulations, Articles of Association or harmed the interests of the Company.
VI. Independence and Completeness in business, personnel, assets, organization and finance 1. The business of the Company is entirely independent from its controlling shareholder. The controlling shareholder and its subordinate units do not engage in the business that are the same or similar to the business of the Company.
2. The Company has basically separated its staff from its controlling shareholder. No senior management, department managers, financial manager and the secretary to Board of Directors takes any position in the controlling shareholder.
3. The assets invested by the controlling shareholder are independent and integrated with clear ownership. In the report period, there is no assets possession, allocation and management interference of the Company.
4. TheCompany’s Board of Directors, Board of Supervisors and other internal organizations operate independently. There is no affiliated relation between the controlling shareholder and its functional departments as well as the Company and theCompany’s functional departments. The controlling shareholder and its subordinate organizationdon’t give any business plan or directions to intervene in the independence of the Company and itssubordinate’s operation and management.
5. The Company establishes finance system and accounting system according to relative laws and regulations. The controlling shareholder does not intervene in theCompany’s finance and accounting activities.
VII. Examination and Incentive Mechanism for Senior Management
In the report period, the salaries of senior management were decided by their work performance, job description, personal ability, theCompany’s profit, etc. In the report period, there are no equity incentives for senior management.
ⅨⅨⅨⅨ
Part . Internal Control
I. Internal Control Construction
In accordance of the " Basic Standards for Enterprise Internal Control " and its supporting guidance and Shenzhen Bureau of Finance and other ministries jointly issued " on good internal control practices of listed companies in Shenzhen area pilot work notice" ( No. 2011-31 ) requirements, the company developed a " company internal control standards implementation plan ." According to an embodiment plan, the company launched the internal construction since 2011, self-evaluation and internal audit work.
During the reporting period , facing the severe economic situation and new challenges, targeted to the internal control objectives, focusing internal control and actively curing results, the Company continued to optimize the internal control system and operational mechanism , focusing on internal control practices and innovation to ensure the rational and effective internal control system design continuously to improve the company's management , standardized operation and risk levels, furthermore, improve the company 's internal controlsystem， which the evaluation of internal control described in "Internal Control Assessment 2013 Annual Report.". The company hired Deloitte Touche Tohmatsu CPA ( special general partner ) for the year 2013 the company conducted an independent audit of the effectiveness of internal control , and issued a standard unqualified audit report.
.
II. Statement of the Board of Directors on the Responsibility of Internal Control
In accordance with specification requirements of internal control system, the Company establish a sound and effective internal controls to evaluate their effectiveness and truthful disclosure of internal control evaluationreport，
which is the responsibility of the Board of Directors. The Company to ensure that the contents of this report does not contain any false, misleading statements or material omissions, and accept joint and several liability for the authenticity, accuracy and completeness of the contents of the report.
III. Basis for Establishment of Internal Control of the Financial Report
In accordance with "the basic norms of internal control" and its supporting guidelines and other internal control regulatory requirements, combined with the internal control system and evaluation methods, internal control and supervision of special supervision daily basis on the company's December 31, 2013 (internal control evaluation report reference date) the effectiveness of internal controls were evaluated.
IV. Self-assessment Report of Internal Control
|||
|-|-|
|About the Significant Defects of the Internal Control Found in the Internal Control Self-assessment Report in the||
|Report Period||
|No significant defect of internal control was found in the report period.||
|Disclosure Date of the|April 24, 2014|

|||
|-|-|
|Self-assessment Report of||
|Internal Control||
|Disclosure Index of the||
|Self-assessment Report of|www.cninfo.com.cn|
|Internal Control||

V. Internal Control Audit Report
√applicable□ inapplicable
|||
|-|-|
|Review Opinions in the Internal Control Audit Report||
|In our opinion, Shenzhen Chiwan Petroleum Supply Base Co., Ltd. and its important subsidiaries have||
|maintained effective financial report internal control in all material aspects according to the Basic Standards for||
|Enterprise Internal Control and relevant regulations ended December 31, 2013.||
|Disclosure Date of Internal||
||April 24, 2014|
|Control Audit Report||
|Disclosure Index of Internal||
||www.cninfo.com.cn|
|Control Audit Report||

Has the CPAs issued a qualifiedauditor‘s report of internal control.
□ Yes√No
Does the internal control audit report issued by the CPAs agree with the self-assessment report of the Board of Directors
√Yes□ No
VI. The Establishment and Implementation of the Obligation System of Major Errors in Annual Report Disclosure
The Ninth Session of the Fifth Board of Directors reviewed and approved the Obligation System of Major Errors in Annual Report Disclosure on April 20, 2010. The system stipulated the identification and obligation for major errors in annual report disclosure. The Company strictly implemented the system afterwards.
There are no major accounting errors or omitted information in the report period.
ⅩⅩⅩⅩ
PART . Financial Report (Attachment)
|||
|-|-|
|Opinion Type of Audit Report|Standard and Unqualified|
|Signature Date of Audit Report|April 22, 2014|
|Name of Audit Organization|Deloitte Touche Tohmatsu Certified Public Accountants LLP|
|No. of Audit Report|De Shi Bao(Shen) Zi (14) No.P1118|

ⅪⅪⅪⅪ
PART . Documents Available for Verification
1. Original copy of Annual Report carrying the signature of the Chairman.
2. Financial Report carrying the signature of relative persons in charge.
3. Original copy ofAuditor’s Statements sealed by CPA and signed by registered accountants.
4. Original copies of all the documents disclosed in the newspapers specified by the China Securities Regulatory Commission.
Board of Directors
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. April
24th
2014
SHENZHEN CHIWAN
PETROLEUM SUPPLY BASE CO., LTD.
Financial Statements and Auditor's Report
for the year ended 31 December 2012
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
Financial Statements and Auditor's Report
for the year ended 31 December 2012
Contents Page Auditor's report 1 - 2 The Company's and consolidated balance sheets 3 - 4 The Company and consolidated income statements 5 - 6 The Company and consolidated cash flow statements 7 - 8 The Company and consolidated statements of changes in shareholders' equity 9 - 10 Notes to the financial statements 11-9
SHENZHEN CHIWAN
PETROLEUM SUPPLY BASE CO., LTD.
Financial Statements and Auditor's Report
for the year ended 31 December 2013
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2013
Contents Pages Auditor's report 1 - 2 The Company's and consolidated balance sheets 3 - 4 The Company and consolidated income statements 5 - 6 The Company and consolidated cash flow statements 7 - 8 The Company and consolidated statements of changes in shareholders' equity 9 - 10 Notes to the financial statements 11-99
AUDITOR'S REPORT
De Shi Bao(Shen) Zi (14) No.P[1118] To the Shareholders of
Shenzhen Chiwan Petroleum Supply Base Co., Ltd.
We have audited the accompanying financial statements of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (the "Company"), which comprise the Company's and consolidated balance sheets as at 31 December 2013, and the Company's and consolidated income statements, the Company's and consolidated statements of changes in shareholders' equity and the Company's and consolidated cash flow statements for the year then ended, and the notes to the financial statements
1. Management's responsibility for the financial statements
Management of the Company is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparing the financial statements in accordance with Accounting Standards for Business Enterprises to achieve fair presentation of the financial statements; (2) designing, implementing and maintaining internal control which is necessary to enable that the financial statements are free from material misstatement, whether due to fraud or error.
2. Auditor's responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing. Those Standards on require that we comply with the Code of Ethics for Chinese Certified Public Accountants and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing audit procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider the internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
3. Opinion
In our opinion, the financial statements of the Company present fairly, in all material respects, the Company's and consolidated financial position as of 31 December 2013, and the Company's and consolidated results of operations and cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises.
Deloitte Touche Tohmatsu Certified Chinese Certified Public Accountant Public AccountantsLLP
Shanghai, China Li Weihua
Chinese Certified Public Accountant Fang Shaofan
22 April 2014
The auditor's report and the accompanying financial statements are English translations of the Chinese auditor's report and financial statements prepared in accordance with Accounting Standards for Business Enterprises. These financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in other countries and jurisdictions. Where the English version does not conform to the Chinese version, the Chinese version prevails.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
AT 31 DECEMBER 2013
Consolidated Balance Sheet
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||ITEM||Notes||Closing balance||Opening balance||ITEM||Notes||Closing balance||Opening balance|
||Current Assets:||||||||Current Liabilities:|||||||
||Cash and bank|(VI)1||233,332,680.86||893,354,140.32||Accounts payable||(VI)17||10,629,691.02||11,475,510.87||
||balances|||||||||||||||
||Accounts receivable|(VI)2||55,359,989.14||53,009,042.14|||Receipts in advance|(VI)18||6,130,153.26||4,391,694.77||
|Prepayments||(VI)3||552,431.59||456,996.73|||Employee benefits|(VI)19||29,173,650.77||18,038,159.40||
||||||||||payable|||||||
||Interest receivable|||4,797,363.01||2,991,284.22|||Taxes payable|(VI)20||47,821,808.03||21,070,585.27||
||Dividends receivable|(VI)4||48,000,000.00||-|||Interest payable|(VI)21||28,339,479.77||29,000,767.81||
||Other receivables|(VI)5||61,658,096.81||8,439,487.37|||Other payables|(VI)22||235,814,254.97||137,058,564.60||
|Inventories||(VI)6||996,356.55||1,069,721.81|||Non-current liabilities|(VI)23||311,049,351.16||1,349,351.16||
||||||||||due within one year|||||||
|Other current assets||(VI)7||547,610,000.00||370,086,712.21|||Total Current|||668,958,388.98||222,384,633.88||
||||||||||Liabilities|||||||
||Total Current|||952,306,917.96||1,329,407,384.80|||Non-current|||||||
||Assets||||||||Liabilities:|||||||
||Non-current Assets:||||||||Long-term borrowings|(VI)24||185,443,647.96||833,063,851.56||
||Long-term equity|(VI)8, 9||476,253,695.39||484,031,681.93||Bonds payable||(VI)25||964,195,500.00||962,713,500.00||
||investments|||||||||||||||
||Investment|(VI)10||904,216,455.40||939,690,654.45||Long-term payables||(VI)26||212,011,691.49||191,254,998.76||
||properties|||||||||||||||
|Fixed assets||(VI)11||516,378,454.46||544,875,016.47|||Other non-current|(VI)27||719,066,260.66||720,415,611.82||
||||||||||liabilities|||||||
||Construction in|(VI)12||376,118,459.02||20,382,765.11|||Total Non-current|||2,080,717,100.11||2,707,447,962.14||
||progress||||||||Liabilities|||||||
|Intangible assets||(VI)13||1,242,104,033.52||911,239,182.92|||TOTAL|||2,749,675,489.09||2,929,832,596.02||
||||||||||LIABILITIES|||||||
|Deferred tax assets||(VI)14||16,413,246.95||17,163,441.12|||SHAREHOLDERS'|||||||
||||||||||EQUITY:|||||||
||Other non-current|(VI)16||17,273,362.26||232,296,392.97||Share capital||(VI)28||230,600,000.00||230,600,000.00||
||assets|||||||||||||||
||Total Non-current|||3,548,757,707.00||3,149,679,134.97||Capital reserve||(VI)29||234,141,186.09||234,141,186.09||
||Assets|||||||||||||||
||||||||||Special reserve|(VI)30||2,622,730.81||1,469,510.03||
||||||||||Surplus reserve|(VI)31||284,684,747.72||263,826,090.57||
||||||||||Unappropriated profits|(VI)32||720,937,883.66||557,522,716.65||
||||||||||Total shareholders'|||1,472,986,548.28||1,287,559,503.34||
||||||||||equity attributable to|||||||
||||||||||equity holders of the|||||||
||||||||||Company|||||||
||||||||||Minority interests|||278,402,587.59||261,694,420.41||
||||||||||TOTAL|||1,751,389,135.87||1,549,253,923.75||
||||||||||SHAREHOLDERS'|||||||
||||||||||EQUITY|||||||
|TOTAL ASSETS||||4,501,064,624.96||4,479,086,519.77|||TOTAL|||4,501,064,624.96||4,479,086,519.77||
||||||||||LIABILITIES AND|||||||
||||||||||SHAREHOLDERS'|||||||
||||||||||EQUITY|||||||

The accompanying notes form an integral part of the financial statements.
The financial statements on pages 2 to 99were signed by the following:
Tian Junyan Yu Zhongxia Sun Yuhui
Legal Representative Chief Financial Officer Head of Accounting Department
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
AT 31 DECEMBER 2013
Balance Sheet of the Company
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||ITEM||Notes||Closing balance||Opening balance||ITEM||Notes||Closing balance||Opening balance|
||Current Assets:||||||||Current Liabilities:|||||||
||Cash and bank|(XI)1||59,429,719.52||853,612,179.80||Accounts payable||||9,934,722.92||10,125,320.73||
||balances|||||||||||||||
||Accounts receivable|(XI)2||40,118,181.46||31,163,204.68|||Employee benefits payable|||19,641,409.26||13,625,618.85||
||Prepayments|||163,921.32||226,390.22|||Taxes payable|||28,393,537.23||13,567,478.42||
||Interest receivable|||4,797,363.01||2,991,284.22|||Interest payable|||28,301,589.75||29,000,767.81||
||Dividends receivable|||48,000,000.00||31,381,013.32|||Other payables|||65,217,657.24||65,680,317.28||
|Other receivables||(XI)3||1,085,568,875.34||675,817,631.62|||Non-current liabilities due|(VI)23||311,049,351.16||1,349,351.16||
||||||||||within one year|||||||
||Inventories|||747,075.29||783,483.01|||Total Current Liabilities|||462,538,267.56||133,348,854.25||
||Other current assets|(VI)7||547,610,000.00||370,086,712.21|||Non-current Liabilities:|||||||
||Total Current Assets|||1,786,435,135.94||1,966,061,899.08|||Long-term borrowings|(XI)5||165,048,306.62||833,063,851.56||
||Non-current Assets:||||||||Bonds payable|(VI)25||964,195,500.00||962,713,500.00||
||Long-term equity|(XI)4||1,348,059,455.10||1,355,837,441.64|||Other non-current|(VI)27||719,066,260.66||720,415,611.82||
||investments||||||||liabilities|||||||
|Investment properties||||106,792,020.08||112,057,240.83|||Total Non-current|||1,848,310,067.28||2,516,192,963.38||
||||||||||Liabilities|||||||
||Fixed assets|||74,973,379.32||82,515,597.59|||TOTAL LIABILITIES|||2,310,848,334.84||2,649,541,817.63||
||Construction in|||7,174,594.15||584,155.66|||SHAREHOLDERS'|||||||
||progress||||||||EQUITY:|||||||
||Intangible assets|||325,806,871.10||342,675,936.75|||Share capital|(VI)28||230,600,000.00||230,600,000.00||
||Deferred tax assets|||151,389.97||127,929.71|||Capital reserve|||204,534,849.49||204,534,849.49||
||Other non-current|||585,092.78||763,150.86||Special reserve||||2,533,941.99||1,428,499.80||
||assets|||||||||||||||
||Total non-current assets|||1,863,542,802.50||1,894,561,453.04|||Surplus reserve|(VI)31||284,684,747.72||263,826,090.57||
||||||||||Unappropriated profits|||616,776,064.40||510,692,094.63||
||||||||||TOTAL|||1,339,129,603.60||1,211,081,534.49||
||||||||||SHAREHOLDERS'|||||||
||||||||||EQUITY|||||||
|TOTAL ASSETS||||3,649,977,938.44||3,860,623,352.12|||TOTAL LIABILITIES|||3,649,977,938.44||3,860,623,352.12||
||||||||||AND SHAREHOLDERS'|||||||
||||||||||EQUITY|||||||

The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2013
Consolidated Income Statement
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|ITEM||Notes||Amount for the||Amount for the|
||ITEM|||current period||prior period|
||I. Total operating income|(VI)33|691,832,626.47||578,591,906.37||
||Including:Operating income||691,832,626.47||578,591,906.37||
||Less: Total operating costs||252,860,477.85||230,078,993.62||
||Including:Operating costs|(VI)33|252,860,477.85||230,078,993.62||
||Business taxes and levies|(VI)34|29,668,672.93||40,582,661.14||
||Selling expenses|(VI)35|1,108,956.18||3,293,090.34||
||General and administrative expenses|(VI)36|88,860,395.44||65,804,669.78||
||Financial expenses|(VI)37|142,061,450.21||119,071,509.34||
||Impairment losses of assets|(VI)38|68,650.31||358,320.98||
||Add: Investment income|(VI)39|95,467,912.62||77,110,684.65||
||Including: Income from investments inassociates||62,622,013.46||58,893,228.92||
||and joint ventures||||||
||II. Operating profit||272,671,936.17||196,513,345.82||
||Add: Non-operating income|(VI)40|5,569,265.05||5,151,135.50||
||Less: Non-operating expenses|(VI)41|386,321.46||144,687.83||
||Including: Losses from disposal of non-current assets||132,490.93||96,956.57||
||III. Gross profit||277,854,879.76||201,519,793.49||
||Less: Income tax expenses|(VI)42|53,582,318.37||26,045,194.39||
||IV. Net profit||224,272,561.39||175,474,599.10||
||Net profit attributable to owners of the Company||207,564,394.21||162,182,965.40||
||Profit or loss attributable to minority shareholders||16,708,167.18||13,291,633.70||
||V. Earnings per share:||||||
||(I) Basic earnings per share|(VI)43|0.90||0.70||
||(II) Diluted earnings per share||Not applicable||Not applicable||
||VI. Other comprehensive income||-||-||
||VII. Total comprehensive income:||224,272,561.39||175,474,599.10||
||Total comprehensive income attributable to owners of the||207,564,394.21||162,182,965.40||
||Company||||||
||Total comprehensive income attributable to minority||16,708,167.18||13,291,633.70||
||shareholders||||||

The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2013
Income Statement of the Company
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|ITEM||Notes||Amount for the||Amount for the|
||ITEM|||current period||prior period|
||I. Operating income|(XI)6|350,311,658.21||306,375,358.46||
||Less: Operating costs|(XI)6|131,928,558.14||121,446,694.04||
||Business taxes and levies||7,307,947.80||15,348,139.88||
||General and administrative expenses||43,538,896.51||35,030,114.20||
||Financial expenses||90,651,442.34||77,494,970.48||
||Impairment loss of assets||109,482.06||184,673.81||
||Add: Investment income|(XI)7|97,628,267.60||77,643,670.02||
||Including: Income from investments in associates and||62,622,013.46||58,893,228.92||
||joint ventures||||||
||II. Operating profit||174,403,598.96||134,514,436.07||
||Add: Non-operating income||5,154,597.21||1,262,898.28||
||Less: Non-operating expenses||115,630.64||66,265.82||
||Including: Losses from disposal of non-current assets||108,450.64||43,996.49||
||III. Gross profit||179,442,565.53||135,711,068.53||
||Less: Income tax expenses||29,209,368.56||19,004,319.44||
||IV. Net profit||150,233,196.97||116,706,749.09||
||V. Earnings per share:||||||
||(I) Basic earnings per share||Not applicable||Not applicable||
||(II) Diluted earnings per share||Not applicable||Not applicable||
||VI. Other comprehensive income||-||-||
||VII. Total comprehensive income||150,233,196.97||116,706,749.09||

 The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2013
Consolidated Cash Flow Statement
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|ITEM||Notes|||Amount for the||Amount for the|
||ITEM||Notes||current period||prior period|
||I. Cash Flows from Operating Activities:|||||||
||Cash receipts from sales of goods and rendering of services|||710,277,206.51||573,145,451.50||
||Receipts of tax refunds|||-||1,389,172.00||
||Other cash receipts relating to operating activities|(VI)44(1)||51,950,581.70||29,247,574.69||
||Sub-total of cash inflows from operating activities|||762,227,788.21||603,782,198.19||
||Cash payments for goods purchased and services received|||103,233,168.44||95,599,279.69||
||Cash payments to and on behalf of employees|||79,947,902.84||66,790,196.82||
||Payments of various taxes|||92,145,312.36||82,518,220.48||
||Other cash payments relating to operating activities|(VI)44(2)||51,440,354.42||31,195,379.91||
||Sub-total of cash outflows from operating activities|||326,766,738.06||276,103,076.90||
||Net Cash Flows from Operating Activities|(VI)45(1)||435,461,050.15||327,679,121.29||
||II. Cash Flows from Investing Activities:|||||||
||Cash receipts from investment income|||22,400,000.00||-||
||Net cash receipts from disposal of fixed assets, intangible assets and|||327,157.94||32,000.00||
||other long-term assets|||||||
||Other cash receipts relating to investing activities|(VI)44(3)||3,874,548,793.43||2,052,803,702.31||
||Sub-total of cash inflows from investing activities|||3,897,275,951.37||2,052,835,702.31||
||Cash payments to acquire or construct fixed assets, intangible assets|||488,542,467.46||318,887,269.58||
||and other long-term assets|||||||
||Cash payments to acquire investments|||-||100,000,000.00||
||Other cash payments relating to investing activities|(VI)44(4)||4,010,610,000.00||2,035,000,000.00||
||Sub-total of cash outflows from investing activities|||4,499,152,467.46||2,453,887,269.58||
||Net Cash Flows from Investing Activities|||(601,876,516.09)||(401,051,567.27)||
||III. Cash Flows from Financing Activities:|||||||
||Cash receipts from borrowings|||68,679,796.40||773,763,851.56||
||Cash receipts from issue of bonds|||-||970,000,000.00||
||Other cash receipts relating to financing activities|(VI)44(5)||20,756,692.73||46,420,072.41||
||Sub-total of cash inflows from financing activities|||89,436,489.13||1,790,183,923.97||
||Cash repayments of borrowings|||406,600,000.00||1,060,420,000.00||
||Cash payments for distribution of dividends or profits or settlement|||116,381,239.94||106,354,468.71||
||of interest expenses|||||||
||Including: Payments for distribution of dividends or profits to|||-||7,020,350.63||
||minority owners of subsidiaries|||||||
||Other cash payments relating to financing activities|(VI)44(6)||59,995,597.46||58,632,146.08||
||Sub-total of cash outflows from financing activities|||582,976,837.40||1,225,406,614.79||
||Net Cash Flows from Financing Activities|||(493,540,348.27)||564,777,309.18||
||IV. Effect of Foreign Exchange Rate Changes on Cash and Cash|||(65,645.25)||(162,543.58)||
||Equivalents|||||||
||V. Net Increase(Decrease)in Cash and Cash Equivalents|||(660,021,459.46)||491,242,319.62||
||Add: Opening balance of Cash and Cash Equivalents|(VI)45(2)||893,349,140.32||402,106,820.70||
||VI. Closing Balance of Cash and Cash Equivalents|(VI)45(2)||233,327,680.86||893,349,140.32||

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2013
Cash Flow Statement of the Company
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|ITEM||Note|||Amount for the||Amount for the prior|
||ITEM||Note||current period||period|
||I. Cash Flows from Operating Activities:|||||||
||Cash receipts from sales of goods and rendering of services|||345,232,322.35||308,213,737.01||
||Other cash receipts relating to operating activities|||42,424,761.17||15,347,733.16||
||Sub-total of cash inflows from operating activities|||387,760,642.81||323,561,470.17||
||Cash payments for goods purchased and services received|||68,188,823.12||70,886,553.22||
||Cash payments to and on behalf of employees|||46,185,517.92||38,165,319.66||
||Payments of various taxes|||38,655,940.19||40,531,265.68||
||Other cash payments relating to operating activities|||36,940,512.73||22,617,559.38||
||Sub-total of cash outflows from operating activities|||189,970,793.96||172,200,697.94||
||Net Cash Flows from Operating Activities|(XI)8||197,789,848.85||151,360,772.23||
||II. Cash Flows from Investing Activities:|||||||
||Cash receipts from investment income|||53,781,013.32||38,380,837.73||
||Net cash receipts from disposal of fixed assets, intangible assets and|||10,880.00||20,000.00||
||other long-term assets|||||||
||Other cash receipts relating to investing activities|||4,897,238,903.79||2,942,344,761.60||
||Sub-total of cash inflows from investing activities|||4,951,030,797.11||2,980,745,599.33||
||Cash payments to acquire or construct fixed assets, intangible assets|||15,852,799.13||15,041,108.95||
||and other long-term assets|||||||
||Cash payments to acquire investments|||-||100,000,000.00||
||Other cash payments relating to investing activities|||5,408,507,289.50||2,987,234,846.96||
||Sub-total of cash outflows from investing activities|||5,424,360,088.63||3,102,275,955.91||
||Net Cash Flows from Investing Activities|||(473,329,291.52)||(121,530,356.58)||
||III. Cash Flows from Financing Activities:|||||||
||Cash receipts from borrowings|||48,284,455.06||773,763,851.56||
||Cash receipts from issue of bonds|||-||970,000,000.00||
||Other cash receipts relating to financing activities|||8,250,591.23||568,599.54||
||Sub-total of cash inflows from financing activities|||56,535,046.29||1,744,332,451.10||
||Cash repayments of borrowings|||406,600,000.00||1,060,420,000.00||
||Cash payments for distribution of dividends or profits or settlement of|||116,164,257.09||99,334,118.08||
||interest expenses|||||||
||Other cash payments relating to financing activities|||52,348,815.94||84,859,680.95||
||Sub-total of cash outflows from financing activities|||575,113,073.03||1,244,613,799.03||
||Net Cash Flows from Financing Activities|||(518,578,026.74)||499,718,652.07||
||IV. Effect of Foreign Exchange Rate Changes on Cash and Cash|||(64,990.87)||(162,789.79)||
||Equivalents|||||||
||V．．．．Net Increase(Decrease) in Cash and Cash Equivalents|||(794,182,460.28)||529,386,277.93||
||Add: Opening balance of Cash and Cash Equivalents|(XI)7||853,607,179.80||324,220,901.87||
||VI. Closing Balance of Cash and Cash Equivalents|(XI)7||59,424,719.52||853,607,179.80||

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2013
Consolidated Statement of Changes in Shareholders' Equity
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ITEM||Amount for the current period|||||||Amount for the same period of last year|||||||
|||Attributable to shareholders of the Company|||||Minority interests|Total shareholders'equity|Attributable to shareholders of the Company|||||Minority interests|Totalshareholders'equity|
|||Share capital|Capital reserve|Specialreserve|Surplus reserve|Unappropriatedprofits|||Share capital|Capital reserve|Special reserve|Surplus reserve|Unappropriatedprofits|||
||ITEM|||||||||||||||
||I. Closing balance of the preceding|230,600,000.00|234,141,186.09|1,469,510.03|263,826,090.57|557,522,716.65|261,694,420.41|1,549,253,923.75|230,600,000.00|234,141,186.09|-|242,990,556.25|452,610,050.78|248,402,786.71|1,408,744,579.83|
||year|||||||||||||||
||Add: Changes in accounting policies|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Corrections of prior period errors|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|II. Opening balance of the currentyear||230,600,000.00|234,141,186.09|1,469,510.03|263,826,090.57|557,522,716.65|261,694,420.41|1,549,253,923.75|230,600,000.00|234,141,186.09|-|242,990,556.25|452,610,050.78|248,402,786.71|1,408,744,579.83|
||III. Changes for the year|-|-|1,153,220.78|20,858,657.15|163,415,167.01|16,708,167.18|202,135,212.12|-|-|1,469,510.03|20,835,534.32|104,912,665.87|13,291,633.70|140,509,343.92|
||(I) Net profit|-|-|-|-|207,564,394.21|16,708,167.18|224,272,561.39|-|-|-|-|162,182,965.40|13,291,633.70|175,474,599.10|
||(II) Other comprehensive income|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Subtotal of (I) and (II)|-|-|-|-|207,564,394.21|16,708,167.18|224,272,561.39|-|-|-|-|162,182,965.40|13,291,633.70|175,474,599.10|
||(III) Owners' contributions and|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||reduction in capital|||||||||||||||
||1. Capital contribution from owners|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||2. Share-based payment recognised in|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||owners' equity|||||||||||||||
||3. Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||(IV) Profit distribution|-|-|-|20,858,657.15|(44,149,227.20)||(23,290,570.05)|-|-||20,835,534.32|(57,270,299.53)|-|(36,434,765.21)|
||1. Transfer to surplus reserve|-|-|-|20,858,657.15|(20,858,657.15)|-|-|-|-|-|20,835,534.32|(20,835,534.32)|-|-|
||2. General Risk Provision|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||3. Distributions to shareholders|-|-|-|-|(23,290,570.05)|-|(23,290,570.05)|-|-|-|-|(36,434,765.21)|-|(36,434,765.21)|
||4. Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||(V) Transfers within owners' equity|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||1. Capitalisation of capital reserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||2. Capitalisation of surplus reserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||3. Loss offset by surplus reserve|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||4. Others|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||(VI) Special reserve|-|-|1,153,220.78|-|-|-|1,153,220.78|-|-|1,469,510.03|-|-|-|1,469,510.03|
||1. Transfer to special reserve in the|-|-|1,713,819.06|-|-|-|1,713,819.06|-|-|1,882,448.51|-|-|-|1,882,448.51|
||period|||||||||||||||
|2. Amount utilised in the period||-|-|(560,598.28)|-|-|-|(560,598.28)|-|-|(412,938.48)|-|-|-|(412,938.48)|
|IV. Closing balance of the currentyear||230,600,000.00|234,141,186.09|2,622,730.81|284,684,747.72|720,937,883.66|278,402,587.59|1,751,389,135.87|230,600,000.00|234,141,186.09|1,469,510.03|263,826,090.57|557,522,716.65|261,694,420.41|1,549,253,923.75|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2013
Statement of Changes in Shareholders' Equity of the Company
Unit: RMB
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ITEM||Amount for the current period||||||||Amount for the same period of last year||||||||
|||Attributable to shareholders of the Company|||||||Total shareholders'equity|Attributable to shareholders of the Company|||||||Total shareholders'equity|
||||Attributable to shareholders of the Company||||||||Attributable to shareholders of the Company|||||||
|||Share capital||Capital reserve|Special reserve|Surplus reserve||Unappropriated||Share capital||Capital reserve|Special reserve|Surplus reserve||Unappropriated||
||ITEM|||||||profits||||||||profits||
||I. Closing balance of the preceding|230,600,000.00||204,534,849.49|1,428,499.80|263,826,090.57|510,692,094.63||1,211,081,534.49|230,600,000.00||204,534,849.49|-|242,990,556.25|451,255,645.07||1,129,381,050.81|
||year|||||||||||||||||
||Add: Changes in accounting policies|-||-|-|-|-||-|-||-|-|-|-||-|
||Corrections of prior period errors|-||-|-|-|-||-|-||-|-|-|-||-|
||Others|-||-|-|-|-||-|-||-|-|-|-||-|
||II. Opening balance of the current|230,600,000.00||204,534,849.49|1,428,499.80|263,826,090.57|510,692,094.63||1,211,081,534.49|230,600,000.00||204,534,849.49|-|242,990,556.25|451,255,645.07||1,129,381,050.81|
||year|||||||||||||||||
||III. Changes for the year|-||-|1,105,442.19|20,858,657.15|106,083,969.77||128,048,069.11|-||-|1,428,499.80|20,835,534.32|59,436,449.56||81,700,483.68|
||(I) Net profit|-||-|-|-|150,233,196.97||150,233,196.97|-||-|-|-|116,706,749.09||116,706,749.09|
||(II) Other comprehensive income|-||-|-|-|-||-|-||-|-|-|-||-|
||Subtotal of (I) and (II)|-||-|-|-|150,233,196.97||150,233,196.97|-||-|-|-|116,706,749.09||116,706,749.09|
||(III) Owners' contributions and|-||-|-|-|-||-|-||-|-|-|-||-|
||reduction in capital|||||||||||||||||
||1. Capital contribution from owners|-||-|-|-|-||-|-||-|-|-|-||-|
||2. Share-based payment recognised|-||-|-|-|-||-|-||-|-|-|-||-|
||in owners' equity|||||||||||||||||
||3. Others|-||-|-|-|-||-|-||-|-|-|-||-|
||(IV) Profit distribution|-||-|-|20,858,657.15|(44,149,227.20)||(23,290,570.05)|-||-|-|20,835,534.32|(57,270,299.53)||(36,434,765.21)|
||1. Transfer to surplus reserve|-||-|-|20,858,657.15|(20,858,657.15)||-|-||-|-|20,835,534.32|(20,835,534.32)||-|
||2. General Risk Provision|-||-|-|-|-|||-||-|-|-|-||-|
||3. Distributions to shareholders|-||-|-|-|(23,290,570.05)||(23,290,570.05)|-||-|-|-|(36,434,765.21)||(36,434,765.21)|
||4. Others|-||-|-|-|-||-|-||-|-|-|-||-|
||(V) Transfers within owners' equity|-||-|-|-|-||-|-||-|-|-|-||-|
||1. Capitalisation of capital reserve|-||-|-|-|-||-|-||-|-|-|-||-|
||2. Capitalisation of surplus reserve|-||-|-|-|-||-|-||-|-|-|-||-|
||3. Loss offset by surplus reserve|-||-|-|-|-||-|-||-|-|-|-||-|
||4. Others|-||-|-|-|-||-|-||-|-|-|-||-|
||(VI) Special reserve|-||-|1,105,442.19|-|-||1,105,442.19|-||-|1,428,499.80|-|-||1,428,499.80|
||1. Transfer to special reserve in the|-||-|1,660,540.47|-|-||1,660,540.47|-||-|1,841,438.28|-|-||1,841,438.28|
||period|||||||||||||||||
||2. Amount utilised in the period|-||-|(555,098.28)|-|-||(555,098.28)|-||-|(412,938.48)|-|-||(412,938.48)|
||IV. Closing balance of the current|230,600,000.00||204,534,849.49|2,533,941.99|284,684,747.72|616,776,064.40||1,339,129,603.60|230,600,000.00||204,534,849.49|1,428,499.80|263,826,090.57|510,692,094.63||1,211,081,534.49|
||year|||||||||||||||||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(I) BASIC INFORMATION ABOUT THE COMPANY
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (the “Company”)was established through the restructuring of Shenzhen Chiwan Base Company pursuant to the approval of Shen Fu Ban Han (1995) No. 112 issued by the General Office of Shenzhen Municipal People's Government. The Company publicly issued domestic listed foreign shares (B-Share) pursuant to the approval of Shen Fu Ban Han (1995) No. 112 issued by the General Office of Shenzhen Municipal People's Government and Shen Zheng Ban Fu (1995) No.33 issued by Shenzhen Securities Administration Office on 11 May 1995 and 16 June 1995 respectively. The total number of shares of the Company is 230,600,000 shares after the public offering, of whichChina Nanshan Development (Group) Incorporation (“Nanshan Group”) holds 119,420,000 shares that accounts for51.79% the Company's equity shares. Pursuant to the Listing Notice of Shen Zheng Shi Zi (1995) No.14, issued by Shenzhen Stock Exchange, the Company's shares were listed and traded on Shenzhen Stock Exchange on 28 July 1995.
The registration place of the Company is Shenzhen City, Guangdong Province.The main business scope of the Company and its subsidiaries (the “Group”) include: terminal and port operation services; lease of stack area, storage and office building; provision of labor service, cargo handling and transportation, equipment lease, supply of water, power and oil, and agency services for offshore crude oil logistics; operating bonded warehouse and stack area, and commercial car park operation.
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS
1. Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises (the "ASBEs") issued by the Ministry of Finance (the "MoF") on 15 February 2006. In addition, the Group has disclosed relevant financial information in accordance with Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in 2010).
Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for certain financial instruments which are measured at fair value, the Group adopts the historical cost as the principle of measurement in the financial statements. Where assets are impaired, provisions for asset impairment are made in accordance with the relevant requirements.
2. Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with the ASBEs, and present truly and completely, the Company's and consolidated financial position as of 31 December 2013, and the Company's and consolidated results of operations and cash flows for the
year then ended.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
3. Accounting period
The Group has adopted the calendar year as its accounting year, i.e. from 1 January to 31 December. 4. Functional currency
Renminbi (“RMB”) is the currency of the primary economic environment in which the Company and its subsidiaries operate. Therefore, the Company and its subsidiaries choose RMB as their functional currency. The Group adopts RMB to prepare its financial statements.
5. The accounting treatment of business combinations involving enterprises under common control and business combinations not involving enterprises under common control Business combinations are classified into business combinations involving enterprises under common control and business combinations not involving enterprises under common control. 5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded by the combining entities at the date of the combination. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are incurred.
5.2 Business combinations not involving enterprises under common control and goodwill A business combination not involving enterprises under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree. The intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services, etc. and other associated administrative expenses attributable to the business combination are recognised in profit or loss when they are incurred. Where a business combination not involving enterprises under common control is
achieved in stages that involve multiple transactions, the cost of combination is the sum of the
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
consideration paid at the acquisition date and the fair value at the acquisition date of the acquirer's previously held interest in the acquiree.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
5. The accounting treatment of business combinations involving enterprises under common control and business combinations not involving enterprises under common control - continued 5.2 Business combinations not involving enterprises under common control and goodwill -continued The equity interest in the acquiree held before the acquisition date is remeasured at its fair value at the acquisition date, with any difference between its fair value and its carrying amount being recognised as investment income. The other comprehensive income of the acquiree before the acquisition date relating to the previously held interest in the acquiree is transferred to investment income.
The acquiree's identifiable assets, liabilities and contingent liabilities, acquired by the acquirer in a business combination, that meet the recognition criteria shall be measured at fair value at the acquisition date. Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the difference is treated as an asset and recognised as goodwill, which is measured at cost on initial recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognises the remaining difference immediately in profit or loss for the current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment losses, and is presented separately in the consolidated financial statements. It is tested for impairment at least at the end of each year.
For the purpose of impairment testing, goodwill is considered together with the related assets group(s), i.e., goodwill is reasonably allocated to the related assets group(s) or each of assets group(s) expected to benefit from the synergies of the combination. An impairment loss is recognised if the recoverable amount of the assets group or sets of assets groups (including goodwill) is less than its carrying amount. The impairment loss is firstly allocated to reduce the carrying amount of any goodwill allocated to such assets group or sets of assets groups, and then to the other assets of the group pro-rata on the basis of the carrying amount of each asset (other than goodwill) in the group.
The recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the future cash flows expected to be derived from the asset. An asset's fair value is the price in a sale agreement in an arm's length transaction. If there is no sale agreement but an asset is traded in an active market, fair value is the current bid price. If there is no sale agreement or active market for an asset, fair value is assessed based on the best information available. Costs of disposal include legal costs related to the disposal of the asset, related taxes, costs of removing the asset and direct costs to bring the asset into condition for its sale. The present value of expected future cash flows of an asset shall be determined by estimating the future cash flows to be derived from continuing use of the asset and from its ultimate disposal and applying the
appropriate discount rate to those future cash flows.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
The impairment of goodwill is recognised in profit or loss for the period in which it is incurred and will not be reversed in any subsequent period.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
6. Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its operating activities.
For a subsidiary disposed of by the Group, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
For a subsidiary acquired through a business combination not involving enterprises under common control, the operating results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate, and no adjustment is made to the opening balances and comparative figures in the consolidated financial statements.
No matter when the business combination occurs in the reporting period, subsidiaries acquired through a business combination involving enterprises under common control are included in the Group's scope of consolidation as if they had been included in the scope of consolidation from the date when they first came under the common control of the ultimate controlling party. Their operating results and cash flows from the beginning of the earliest reporting period are included in the consolidated income statement and consolidated statement of cash flows, as appropriate. The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the uniform accounting policies and accounting periods set out by the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the Company is treated as minority interests and presented as "minority interests" in the consolidated balance sheet within shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable to minority interests is presented as "minority interests" in the consolidated income statement below the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders' portion of the opening balance of owners' equity of the subsidiary, the excess amount are still allocated against minority interests.
Acquisition of minority interests or disposal of interest in a subsidiary that does not result in the loss of control over the subsidiary is accounted for as equity transactions. The carrying amounts of the Company's interests and minority interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the amount by which the minority interests are adjusted and the fair value of the consideration paid or received is adjusted to capital reserve under owners' equity. If the capital reserve is not sufficient to absorb the difference, the
excess are adjusted against retained earnings.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
6. Preparation of consolidated financial statements - continued
When the Group loses control over a subsidiary due to disposal of certain equity interest or other reasons, any retained interest is re-measured at its fair value at the date when control is lost. The difference between (i) the aggregate of the consideration received on disposal and the fair value of any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated from the acquisition date according to the original proportion of ownership interest is recognised as investment income in the period in which control is lost. Other comprehensive income associated with investment in the former subsidiary is reclassified to investment income in the period in which control is lost.
When the Group progressively disposes a subsidiary throughmultiple trading until losing control over a subsidiary, multiple trading are considered as a package deal if trading clauses, conditions and economic impacts of disposals on equity investment of the subsidiary meets one or more than one conditions below: (i) multiple trading are concluded simultaneously or concluded after considering influences on one another; (ii) integrated business results are achieved unless multiple trading is a whole; (iii) occurrence of a trading depends on at least one of another trading; (iv) a trading is not profitable, but it will be profitable if it is combined with other trading. Multiple trading, if classified as a package deal, should be treated as a single trading, i.e., in terms of accounting treatment, before losing control over the subsidiary, margins between every disposal payments and corresponding net assets disposed should be recognized as comprehensive income, and converted into profits and losses of current period once the Group loses control over the subsidiary. On the contrary, if multiple trading is not classified as a package deal, each trading should be treated separately in terms of accounting treatment.
7. Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are the Group's short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 8. Translation of transactions and financial statements denominated in foreign currencies A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of the transaction.At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet date are recognised in profit or loss for the period, except that (i) exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalisation are capitalised as part of the cost of the qualifying asset during the capitalisation period; (ii) exchange differences related to hedging instruments for the purpose of hedging against foreign currency risks are accounted for using hedge accounting; (iii) exchange differences arising from changes in the carrying amounts (other
than the amortised cost) of available-for-sale monetary items are recognised as other
comprehensive income and included in capital reserve.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
8. Translation of transactions and financial statements denominated in foreign currencies - continued Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange rate on the date the fair value is determined. Difference between the re-translated functional currency amount and the original functional currency amount is treated as changes in fair value (including changes of exchange rate) and is recognised in profit and loss or as other comprehensive income included in capital reserve. 9. Financial instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. For financial assets and financial liabilities at fair value through profit or loss, transaction costs are immediately recognised in profit or loss. For other financial assets and financial liabilities, transaction costs are included in their initially recognised amounts. 9.1 Determination of fair value
Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. For a financial instrument which has an active market, the Group uses the quoted price in the active market to establish its fair value. For a financial instrument which has no active market, the Group establishes fair value by using a valuation technique. Valuation techniques include using recent arm's length market transactions between knowledgeable, willing parties, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models. 9.2 Effective interest method
The effective interest method is a method of calculating the amortised cost of a financial asset or a financial liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group estimates future cash flows considering all contractual terms of the financial asset or financial liability (without considering future credit losses), and also considers all fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
9. Financial instruments - continued
9.3 Classification, recognition and measurement of financial assets
On initial recognition, the Group's financial assets are classified into one of the four categories, including financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables, and available-for-sale financial assets. All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis.
9.3.1. Financial assets at fair value through profit or loss ("FVTPL")
Financial assets at FVTPL include financial assets held for trading and those designated as at fair value through profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (i) It has been acquired principally for the purpose of selling in the near term; or (ii) On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or (iii) It is a derivative that is not designated and effective as a hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (i) Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring assets or recognising the gains or losses on them on different bases; or (ii) The financial asset forms part of a group of financial assets or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis; (iii) Hybrid instruments associated with embedded derivatives and financial assets measured at fair value and of which changes are recorded into the profits and losses as specified in Accounting Standard for Business Enterprises No.22 - Financial Recognition and Measurement of Instruments.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value and any dividend or interest income earned on the financial assets are recognised in profit or loss.
9.3.2 Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Group's management has the positive intention and ability to hold to maturity.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
Held-to-maturity investments are subsequently measured at amortised cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortisation is recognised in profit or loss.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
9. Financial instruments - continued
9.3 Classification, recognition and measurement of financial assets - continued
9.3.3. Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets classified as loans and receivables by the Group include accounts receivable, interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortised cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortisation is recognised in profit or loss.
9.3.4. Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognition as available for sale, and financial assets that are not classified as financial assets at fair value through profit or loss, loans and receivables or held-to-maturity investments. Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising from changes in the fair value are recognised as other comprehensive income and included in the capital reserve, except that impairment losses and exchange differences related to amortised cost of monetary financial assets denominated in foreign currencies are recognised in profit or loss, until the financial assets are derecognised, at which time the gains or losses are released and recognised in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the available-for-sale financial assets are held, are recognised in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, and derivative financial assets that are linked to and must be settled by delivery of such unquoted equity instruments, are measured at cost. 9.4 Impairment of financial assets
The Group assesses at each balance sheet date the carrying amounts of financial assets other than those at fair value through profit or loss. If there is objective evidence that a financial asset is impaired, the Group determines the amount of any impairment loss. Objective evidence that a financial asset is impaired is evidence that, arising from one or more events that occurred after the initial recognition of the asset, the estimated future cash flows of the financial asset, which can be reliably measured, have been affected.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
9. Financial instruments - continued
9.4 Impairment of financial assets - continued
Objective evidence that a financial asset is impaired includes the following observable events: (1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal payments; (3) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial reorganisations; (5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer; (6) Upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in the estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. Such observable data includes:
- Adverse changes in the payment status of borrower in the group of assets;
- Economic conditions in the country or region of the borrower which may lead to a failure to pay the group of assets;
(7) Significant adverse changes in the technological, market, economic or legal environment in which the issuer operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortised cost
If financial assets carried at amortised cost are impaired, the carrying amounts of the financial assets are reduced to the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset's original effective interest rate. The amount of reduction is recognised as an impairment loss in profit or loss. If, subsequent to the recognition of an impairment loss on financial assets carried at amortised cost, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognised, the previously recognised impairment loss is reversed. However, the reversal is made to the extent that the carrying amount of the financial asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
9. Financial instruments - continued
9.4 Impairment of financial assets - continued
For a financial asset that is individually significant, the Group assesses the asset individually for impairment. For a financial asset that is not individually significant, the Group assesses the asset individually for impairment or includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset (whether significant or not), it includes the asset in a group of financial assets with similar credit risk characteristics and collectively reassesses them for impairment. Assets for which an impairment loss is individually recognised are not included in a collective assessment of impairment. - Impairment of available-for-sale financial assets
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value previously recognised directly in capital reserve is reclassified from the capital reserve to profit or loss. The amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the acquisition cost (net of any principal repayment and amortisation) and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognised, the previously recognised impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale equity instruments is recognised as other comprehensive income and included in the capital reserve, while the amount of reversal of impairment loss on available-for-sale debt instruments is recognised in profit or loss.
- Impairment of financial assets measured at cost
If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the carrying amount of the financial asset is reduced to the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. The amount of reduction is recognised as an impairment loss in profit or loss. The impairment loss on such financial asset is not reversed once it is recognised.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
9. Financial instruments - continued
9.5 Transfer of financial assets
The Group derecognises a financial asset if one of the following conditions is satisfied: (1) the contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; or (3) although the financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and it retains control of the financial asset, it recognises the financial asset to the extent of its continuing involvement in the transferred financial asset and recognises an associated liability. The extent of the Group's continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the transferred asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference between (1) the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from the transfer and any cumulative gain or loss that has been recognised in other comprehensive income is recognised in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognised and the part that is derecognised, based on the respective fair values of those parts. The difference between (1) the carrying amount allocated to the part derecognised; and (2) the sum of the consideration received for the part derecognised and any cumulative gain or loss allocated to the part derecognised which has been previously recognised in other comprehensive income, is recognised in profit or loss.
9.6 Classification, recognition and measurement of financial liabilities
Debt and equity instruments issued by the Group are classified into financial liabilities or equity on the basis of the substance of the contractual arrangements and definitions of financial liability and equity instrument.
On initial recognition, financial liabilities are classified into financial liabilities at fair value through profit or loss and other financial liabilities.
9.6.1 Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL consist of financial liabilities held for trading and those designated as at FVTPL on initial recognition.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
9. Financial instruments - continued
9.6 Classification, recognition and measurement of financial liabilities - continued
9.6.1 Financial liabilities at fair value through profit or loss - continued
A financial liability is classified as held for trading if one of the following conditions is satisfied: (1) It has been acquired principally for the purpose of repurchasing in the near term; or (2) On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or (3) It is a derivative, except for a derivative that is a designated and effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
A financial liability may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (1) Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring liabilities or recognising the gains or losses on them on different bases; or (2) The financial liability forms part of a group of financial liabilities or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis; (3) Hybrid instruments associated with embedded derivatives and financial liabilities measured at fair value and of which changes are recorded into the profits and losses as specified in Accounting Standard for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments.
Financial liabilities at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value or any dividend or interest expenses related to the financial liabilities are recognised in profit or loss.
9.6.2 Other financial liabilities
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, it is subsequently measured at cost. Other financial liabilities(excluding liabilities with financial guarantee contracts) are subsequently measured at amortised cost using the effective interest method, with gains or losses arising from derecognition or amortisation recognised in profit or loss.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
9. Financial instruments - continued
9.6 Classification, recognition and measurement of financial liabilities - continued
9.6.3. Financial guarantee contracts
A financial guarantee contract is a contract by which the guarantor and the lender agree that the guarantor would settle the debts or bear obligations in accordance with terms of the contract in case the borrower fails to settle the debts. Financial guarantee contracts that are not designated as financial liabilities at fair value through profit or loss are initially measured at their fair values less the directly attributable transaction costs. Subsequent to initial recognition, they are measured at the higher of: (i) the amount determined in accordance with Accounting Standard for Business Enterprises No. 13- Contingencies; and (ii) the amount initially recognised less cumulative amortisation recognised in accordance with the principles set out in Accounting Standard for Business Enterprises No. 14 - Revenue.
9.7 Derecognition of financial liabilities
The Group derecognises a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
When the Group derecognises a financial liability or a part of it, it recognises the difference between the carrying amount of the financial liability (or part of the financial liability) derecognised and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
9.8 Derivatives and embedded derivatives
Derivatives are initially measured at fair value at the date when the derivative contracts are entered into and are subsequently re-measured at fair value. The resulting gain or loss is recognised in profit or loss unless the derivative is designated and highly effective as a hedging instrument, in which case the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
An embedded derivative is separated from the hybrid instrument, where the hybrid instrument is not designated as a financial asset or financial liability at fair value through profit or loss, and treated as a standalone derivative if 1) the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; and 2) a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative. If the Group is unable to measure the embedded derivative separately
either at acquisition or at a subsequent balance sheet date, it designates the entire hybrid
instrument as a financial asset or financial liability at fair value through profit or loss.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
9. Financial instruments - continued
9.9 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognised financial assets and financial liabilities, and intends either to settle on a net basis, or to realise the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
9.10 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. The consideration received from issuing equity instruments and net of transaction costs, are added to shareholders' equity.
All types of distributions (excluding stock dividends) made by the Group to holders of equityinstruments, are deducted from shareholders' equity. The Group does not recognise any changes in the fair value of equity instruments.
10. Receivables
10.1 Receivables for which bad debt provision is collectively assessed on a portfolio basis
||||
|-|-|-|
||Basis or monetary criteria for|A receivable that exceeds RMB 1 million (including RMB 1million) is deemed as an individually significant receivable bythe Group.|
||determining an individually||
||significant receivable||
|Method of determining provision forreceivables that are individuallysignificant and for which bad debtprovision is individually assessed||For receivables that are individually significant, the Groupassesses the receivables individually for impairment. For afinancial asset that is not impaired individually, the Groupincludes the asset in a group of financial assets with similarcredit risk characteristics and collectively assesses them forimpairment. Receivables for which an impairment loss isindividually recognised are not included in a collectiveassessment of impairment.|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
10. Receivables - continued
10.2 Receivables for which bad debt provision is collectively assessed on a portfolio basis:
||||
|-|-|-|
||Basis for determining a portfolio||
|Portfolio 1|Portfolio 1|Receivables from government, petty cash advanced toemployees, security deposit, and receivables fromrelated parties of the Company and its subsidiaries. Baddebt provision is not recognised for such receivablessince the possibility of incurring bad debt losses isremote.|
|Portfolio 2||The Group classifies the receivables that are notindividually significant and those that are individuallysignificant but are not impaired individually intogroups of financial assets according to the similarityand relevance of credit risk characteristics. These creditrisks usually reflect the debtors' ability to pay theamounts due at maturity under contractual terms ofrelated assets and are related to the estimation of futurecash flows of the assets subject to assessment.|
||Bad debt provision method for a portfolio||
||Portfolio 1|No bad debt provision|
||Portfolio 2|Based on percentage of accounts balances|

10.2.1 Portfolios where percentage of accounts receivable method is used for bad debt provision:
||||||
|-|-|-|-|-|
|Name of portfolio||Provision as a proportion||Provision as a proportion|
|||of accounts receivable (%)||of other receivables (%)|
|Based on percentage of accounts balances|1.00||1.00||

 10.3 Receivables that are not individually significant but for which bad debt provision is individually assessed:
|||
|-|-|
|Reasons for making individual bad debtprovision|Significant difference between the carrying amount ofaccounts receivable and the present value of estimatedfuture cash flows|
|Bad debt provision methods|Standalone impairment test is carried out and impairmentlosses are recognised based on the difference between thecarrying amount and the present value of estimated futurecash flows.|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- CONTINUED
11. Inventories
11.1 Categories of inventories
The Group's inventories mainly include raw materials and maintenance accessories etc. Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and other expenditures incurred in bringing theinventories to their present location and condition.
11.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method. 11.3 Basis for determining net realisable value of inventories and provision methods for decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realisable value. If the net realisable value is below the cost of inventories, a provision for decline in value of inventories is made. Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes. Net realisable value is determined on the basis of clear evidence obtained, and takes into consideration the purposes of holding inventories and effect of post balance sheet events.
Provision for decline in value of inventories is made based on the excess of cost of inventory over its net realisable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realisable value of inventories is higher than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss for the period.
11.4 Inventory count system
The perpetual inventory system is maintained for stock system.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
12. Long-term equity investments
12.1 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control, the investment cost of the long-term equity investment is the attributable share of the carrying amount of the shareholders' equity of the acquiree at the date of combination. For a long-term equity investment acquired through business combination not involving enterprises under common control, the investment cost of the long-term equity investment is the cost of acquisition. For a long-term equity investment acquired through business combination not involving enterprises under common control and achieved in stages, the investment cost of the long-term equity investment is the aggregate of the carrying amount of the equity interest held in the acquiree prior to the acquisition date and the cost of the additional investment at the acquisition date. The long-term equity investment acquired other than through a business combination is initially measured at its cost.
12.2 Subsequent measurement and recognition of profit or loss
12.2.1. Long-term equity investment accounted for using the cost method
For long-term equity investments over which the Group does not have joint control or significant influence and without quoted prices in an active market and that fair values cannot be reliably measured, the Group accounts for such long-term equity investments using the cost method. Besides, long-term equity investments in subsidiaries are accounted for using the cost method in the Company's separate financial statements. A subsidiary is an investee that is controlled by the Group.
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits already declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity investment, investment income is recognised in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
12.2.2. Long-term equity investment accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An associate is an entity over which the Group has significant influence and a joint venture is an entity over which the Group exercises joint control along with other investors.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost. Where the initial investment cost is less than the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition, the difference is recognised in profit or loss for the period, and the cost of the
long-term equity investment is adjusted accordingly.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
12. Long-term equity investments - continued
12.2 Subsequent measurement and recognition of profit or loss - continued
12.2.2. Long-term equity investment accounted for using the equity method- continued Under the equity method, the Group recognises its share of the net profit or loss of the investee for the period as investment income or loss for the period. The Group recognises its share of the investee's net profit or loss based on the fair value of the investee's individually identifiable assets, etc. at the acquisition date after making appropriate adjustments to conform with the Group's accounting policies and accounting period. Unrealised profits or losses resulting from the Group's transactions with its associates and joint ventures are recognised as investment income or loss to the extent that those attributable to the Group's equity interest are eliminated.
However, unrealised losses resulting from the Group's transactions with its associates and joint ventures which represent impairment losses on the transferred assets are not eliminated. Changes in owners' equity of the investee other than net profit or loss are correspondingly adjusted to the carrying amount of the long-term equity investment, and recognised as other comprehensive income which is included in the capital reserve.
The Group discontinues recognising its share of net losses of the investee after the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of its net investment in the investee is reduced to zero. If the Group has incurred obligations to assume additional losses of the investee, a provision is recognised according to the expected obligation, and recorded as investment loss for the period. Where net profits are subsequently made by the investee, the Group resumes recognising its share of those profits only after its share of the profits exceeds the share of losses previously not recognised.
12.2.3 Disposal of long-term equity investments
On disposal of a long term equity investment, the difference between the proceeds actually received and receivable and the carrying amount is recognised in profit or loss for the period. For a long-term equity investment accounted for using the equity method, the amount included in the shareholders' equity attributable to the percentage interest disposed is transferred to profit or loss for the period.
12.3 Basis for determining joint control and significant influence over investee
Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating policy decisions relating to the activity require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. When determining whether an investing
enterprise is able to exercise control or significant influence over an investee, the effect of
potential voting rights of the investee (for example, warrants and convertible debts) held by the
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
investing enterprises or other parties that are currently exercisable or convertible shall be considered.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
12. Long-term equity investments - continued
12.4 Methods of impairment assessment and determining the provision for impairment loss The Group reviews the long-term equity investments at each balance sheet date to determine whether there is any indication that they have suffered an impairment loss. If an impairment indication exists, the recoverable amount is estimated. If such recoverable amount is less than its carrying amount, a provision for impairment losses in respect of the deficit is recognised in profit or loss for the period.
Once an impairment loss is recognised for a long-term equity investment, it will not be reversed in any subsequent period.
13. Investment properties
Investment property is property held to earn rentals or for capital appreciation or both. It includes a land use right that is leased out; a land use right held for transfer upon capital appreciation; and a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such investment property are included in the cost of the investment property if it is probable that economic benefits associated with an investment property will flow to the Group and the subsequent expenditures can be measured reliably. Other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment property, and adopts a depreciation or amortisation policy for the investment property which is consistent with that for buildings or land use rights.
The Group reviews the investment properties at each balance sheet date to determine whether there is any indication that they have suffered an impairment loss. If there is any indication that such assets may be impaired, the recoverable amounts are estimated for such assets. Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognised in profit or loss for the period. Once an impairment loss is recognised for an investment property, it will not be reversed in any subsequent period.
When an investment property is sold, transferred, retired or damaged, the Group recognises the amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss for the period.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
14. Fixed assets
14.1 Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and have useful lives of more than one accounting year. A fixed asset is recognised only when it is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost and the effect of any expected costs of abandoning the asset at the end of its use is considered.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable that economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced part is derecognised. Other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
14.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method since the month subsequent to the one in which it is ready for intended use. The useful life, estimated net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
|||||||
|-|-|-|-|-|-|
|Category||Depreciationperiod (years)|Residual valuerate (%)||Annual|
||||||depreciation rate|
||Category||||(%)|
||Buildings|5-50|5, 10|1.8-19||
||Port facilities|50|5|1.9||
||Machinery and equipment|3-20|5, 10|4.5-31.7||
||Transportation vehicles|3-14|5, 10|6.4-31.7||
||Fixed asset decorations|2-5|-|20-50||
||Office and other equipment|3-5|5, 10|18-31.7||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
14. Fixed assets - continued
14.4 Other explanations
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least once at each financial year-end, and accounts for any change as a change in an accounting estimate.
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal, the fixed asset is derecognised. When a fixed asset is sold, transferred, retired or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and related taxes is recognised in profit or loss for the period.
15. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various construction expenditures during the construction period, borrowing costs capitalised before it is ready for intended use and other relevant costs. Construction in progress is not depreciated. Construction in progress is transferred to a fixed asset when it is ready for its intended use. The Group assesses at each balance sheet date whether there is any indication that construction in progress may be impaired. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognised in profit or loss for the period.
Once the impairment loss of construction in progress is recognised, it is not be reversed in any subsequent period.
16. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are capitalised when expenditures for such asset and borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. Capitalisation of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. If construction or production of assets qualifying capitalization is interrupted abnormally for a continuous 3-month-or-above period, the capitalization of borrowing costs should be ceased until the assets resume construction or production.Other borrowing costs are recognised as an expense in the period in which they are incurred.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
16. Borrowing costs- continued
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be capitalised is the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed under general-purpose borrowings, the Group determines the amount of interest to be capitalised on such borrowings by applying a capitalisation rate to the weighted average of the excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The capitalisation rate is the weighted average of the interest rates applicable to the general-purpose borrowings.
During capitalization period, any exchange differences of special loans in foreign currency should be capitalized, whereas exchange differences of general loans should be recorded in current profits and losses.
17. Intangible assets
17.1Intangible assets
Intangible assets include land use rights, trademarks and software.
An intangible asset is measured initially at cost. When an intangible asset with a finite useful life is available for use, its original cost less net residual value and any accumulated impairment losses is amortised over its estimated useful life using the straight-line method. An intangible asset with an indefinite useful life is not amortised.
For an intangible asset with a finite useful life, the Group reviews the useful life and amortisation method at the end of the period, and makes adjustments when necessary.
17.2 Methods of impairment assessment and determining the provision for impairment losses of intangible assets
The Group assesses at each balance sheet date whether there is any indication that the intangible assets with a finite useful life may be impaired. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognised in profit or loss for the period.
Intangible assets with indefinite useful life and intangible assets not yet available for use are tested for impairment annually, irrespective of whether there is any indication that the assets may be impaired.Once the impairment loss of such assets is recognised, it is not be reversed in any
subsequent period.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
18. Provisions
A provision shall be recognised when the Group has a present obligation relating to a contingency and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a realisable estimate can be made of the amount of the obligation. At the balance sheet date, a provision is measured at the best estimate of the expenditure required to settle the present obligation after taking into account the risks and uncertainties surrounding a contingency and the time value of money. Where the effect of the time value of money is material, the best estimate shall be the present value as discounted from the expenditures expected to be required to settle the obligation.
If all or partial expenses needed for liquidation of a provisionon is expected to be compensated by a third party andthe compensation is sure to be received, the compensation should be recorded as assets separately with amount not exceeding the net book value of provision.
19. Production safety fee
The Group calculates and includes the production safety fee in the current profit or loss and the special reserve based on the Administrative Rules on Provision and Use of Enterprise Production Safety Fee (Cai Qi[2012] No.16) jointly issued by the MoF and State Administration of Work Safety on 14 February 2012.
If the production safety fee set aside is used as expense, it should be written-off against special reserve directly. If the production safety feeset aside is used for fixed assets for safety purpose, it should beincluded in construction in progress and recognised as fixed assets once the construction of fixed asset for safety purpose reaches the ready-to-use status; at the same time, special reserve should be written-off against the cost of forming fixed assets with the same amount of
accumulated depreciation being recognised. Depreciation will not be calculated on such fixed assets for safety purpose in the future period.
20. Revenue
20.1 Revenue from rendering of services
Revenue from rendering of services is recognised when (1) the amount of revenue can be measured reliably; (2) it is probable that the associated economic benefits will flow to the enterprise; (3) the stage of completion of the transaction can be determined reliably; and (4) the associated costs incurred or to be incurred can be measured reliably. Revenue from rendering of services is recognised using the percentage of completion method at the balance sheet date. The stage of completion of a transaction for rendering for services is determined based on services performed to date as a percentage of total services to be performed.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
20. Revenue- continued
20.1 Revenue from rendering of services - continued
When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the costs incurred that will be recoverable, and the costs incurred are recognised as expenses for the period. When it is not probable that the costs incurred will be recovered, revenue is not recognised.
20.2Revenue from rendering of asset usage right
The revenue is recognised on accrual basis according to related contracts or agreements reached. 20.3Interest income
The interest income shall be calculated based on the tenure of the Group's monetary funds used by others and the actual interest rates used.
21.Government grants
Government grants are transfer of monetary assets and non-monetary assets from the government to the Group at no consideration. A government grant is recognised only when the Group can comply with the conditions attaching to the grant and the Group will receive the grant. If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. Government grant should be divided into asset-related or income-related grant based on the nature specified in government document.
A government grant related to an asset is recognised as deferred income, and evenly amortised to profit or loss over the useful life of the related asset.For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred in subsequent periods, it is recognised as deferred income, and recognised in profit or loss over the periods in which the related costs are recognised. If the grant is a compensation for related expenses or losses already incurred, it is recognised immediately in profit or loss for the period.
22. Deferred tax assets and deferred tax liabilities
The income tax expenses include current income tax and deferred income tax.
22.1Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
22. Deferred tax assets and deferred tax liabilities- continued
22.2Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognised as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognised using the balance sheet liability method.
Deferred tax is generally recognised for all temporary differences. Deferred tax assets for deductible temporary differences are recognised to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilised. However, for temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognised.
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible losses and tax credits can be utilised.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future. At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates, according to tax laws, that are expected to apply in the period in which the asset is realised or the liability is settled.
Current and deferred tax expenses or income are recognised in profit or loss for the period, except when they arise from transactions or events that are directly recognised in other comprehensive income or in shareholders' equity, in which case they are recognised in other comprehensive income or in shareholders' equity; and when they arise from business combinations, in which case they adjust the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it is no longer probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to be utilised. Such reduction in amount is reversed when it becomes probable that sufficient taxable profits will be available.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS- continued
22. Deferred tax assets and deferred tax liabilities - continued
22.2Deferred tax assets and deferred tax liabilities- continued
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realise the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realise the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net basis.
23. Operating leases and finance leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. 23.1 The Group as lessee under operating leases
Operating lease payments are recognised on a straight-line basis over the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for the period. Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are charged to profit or loss in the period in which they are actually incurred.
23.2 The Group as lessor under operating leases
Rental income from operating leases is recognised in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs with more than an insignificant amount are capitalised when incurred, and are recognised in profit or loss on the same basis as rental income over the lease term. Other initial direct costs with an insignificant amount are charged to profit or loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the period in which they actually arise.
24. Corrections of prior period errors
The Group has no corrections of prior period errors.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIODERRORS– continued
25. Other significant accounting policies, accounting estimates, and preparation of financial statements
25.1Employee benefits
In an accounting period in which an employee has rendered service to the Group, the Group recognises the employee benefits for that service as a liability, except for compensation for termination of employment relationship with the employees.
The Group participates in the employee social security systems, such as basic pensions, medical insurance, housing funds and other social securities established by the government in accordance with relevant requirements. The related expenditures are either included in cost of related assets or charged to profit or loss in the period when they are incurred.
When the Group terminates the employment relationship with employees before the expiry of the employment contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, if the Group has a formal plan for termination of employment relationship or has made an offer for voluntary redundancy which will be implemented immediately, and the Group cannot unilaterally withdraw from the termination plan or the redundancy offer, a provision for the compensation payable arising from the termination of employment relationship with employees is recognised with a corresponding charge to the profit or loss for the period. 25.2Exchange of non-monetary assets
If an exchange of non-monetary assets has commercial substance and the fair value of either the asset received or the asset given up can be reliably measured, the cost of the asset received is measured at the fair value of the asset given up (unless there is conclusive evidence that the fair value of the asset received is more reliable) plus any related taxes, and the difference between the fair value used and the carrying amount of the asset given up is recognised in profit or loss. If an exchange of non-monetary assets fails to meet the above conditions, the cost of the asset received is measured at the carrying amount of the asset given up plus any related taxes, and no gain or loss is recognised.
Where several assets are received at the same time in an exchange of non-monetary assets and if the exchange transaction has commercial substance and the fair values of the assets received can be measured reliably, the cost of each asset received is determined by apportioning the total cost of all assets received based on the proportion of the fair value of each asset received to the total fair value of all assets received. If the exchange transaction has no commercial substance, or although the transaction has commercial substance, the fair values of the assets received cannot be measured reliably, the cost of each asset received is determined by apportioning the total cost of all assets received based on the proportion of the original carrying amount of each asset received to the total carrying amount of all assets received.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(III) SIGNIFICANT JUDGMENTS, KEY ASSUMPTIONS AND UNCERTAINTIES
When adopting the accounting policies specified in note (II), the Group needs to make judgments, estimates and assumptions for the carrying amount of items which are presented in financial statements and cannot be measured accurately due to inherent uncertainties of business. The judgments, estimates and assumptions are made according to historical experience of the management and with consideration of other relevant factors.The actual results are likely to be different in part from the estimates made by the Group.
The judgments, estimates and assumptions are reviewed by the Group periodically on going concern basis. If the changes in accounting estimates affect the current period only, the amounts affected are recognised in the current period. If the changes affect both the current and future periods, the amounts affected are recognised in the current accounting period as well as subsequent accounting periods.
At the balance sheet date, key assumptions and uncertainties in the accounting estimates that probably result in significant adjustments to the carrying values of assets and liabilities in the future periods are:
1. Bad debt provision
The allowance method is adopted by the Group to account for losses on bad debt. Bad debt provision of accounts receivable is made based on estimation of the recoverability of receivables, which requires the management to make judgments and estimates. The contingent difference between the actual outcome and the estimates will have effects on the carrying amounts of accounts receivable, and such difference will be included in the profit or lossin the accounting period in which the estimates are changed.
2. Impairment provision for non-current assets
At the balance sheet date, the Group judges whether there are any indicators of impairment for long-term equity investments, investment properties, fixes assets, construction in progress and intangible assets with indefinite useful lives. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognised in profit or loss for the period. Intangible assets with indefinite useful life and intangible assets not ready for the intended use are tested for impairment annually, irrespective of whether there is any indication that the assets may be impaired.
When estimating the recoverable amount, significant judgments are involved in the production output, selling price, business costs of the asset (or asset group) and the discount rate adopted in calculating the present value. In estimating the recoverable amount, the Group will adopt all information available, such as forecasts for the production output, the selling price and business costs, which are made according to reasonable and supportive assumptions.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(III) SIGNIFICANT JUDGMENTS, KEY ASSUMPTIONS AND UNCERTAINTIES - continued 3. Estimated values of investment properties and fixed asset
Since the final completion settlement period for warehouses takes a long time,the warehouse that has reached the ready-to-use status but subject to final completion settlement is capitalised at estimated value based on the actual cost incurred and starts depreciation from the following month after it reaches such status. Upon final completion settlement, the estimated value previously capitalisedis adjusted to its actual value. The management of the Group considers that capitalisation and depreciation of fixed asset based on the actual cost incurred before the final completion settlement are appropriate.
4. Deferred tax assets
A deferred tax asset shall be recognised for deductibletemporary differences and unused deductible losses to the extent that it is probable that future taxable profit will be available against which the deductible losses can be utilised. The management of the Group is required to make significant amount of judgments to estimate the timing and the amount of future taxable profit in order to determine the amount of deferred tax assets to be recognised.
(IV) TAXES
Major categories of taxes and tax rates
|||||||
|-|-|-|-|-|-|
||Category of tax||Basis of tax computation||Tax rate|
|Value-added tax ("VAT")||Revenues from water and electricitysupply and maintenance serviceprovided by general taxpayers||13%, 17%||
|||Revenues from taxable servicesprovided by small-scale taxpayers||3% (note 1)||
|||Revenues from stack (storage), loadingand unloading, delivery and portmanagement services provided bygeneral taxpayers||6%, 11%(note 1)||
|Business tax||Taxable revenue from rendering ofservices, disposal of intangible assets orproperties||3% or 5%||
|City maintenance and construction tax||Actual payment for VAT and businesstaxes||5% or 7%||
|Education surcharge||Actual payment for VAT and businesstaxes||3%||
||Enterprise income tax|Taxable income||25% (note 2)||
||Urban land use tax|Actual occupation of land area||RMB1.50– 10.00/square meter(note 3)||
|Property tax||70% to 90% of the original cost of theproperty or rental income||1.2% on bases of 70% to 90% of theoriginal cost of the property||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(IV) TAXES - continued
Major categories of taxes and tax rates - continued
Note 1: Baowan Logistics Holdings Co., Ltd.("Baowan Holdings"), Nantong Baowan International Logistics Co., Ltd. ("Nantong Baowan"), Tianjin Bingang Baowan International Logistics Co., Ltd. ("Bingang Baowan"), Tianjin Qingwu Baowan International Logistics Co., Ltd. ("Qingwu Baowan"), Baowan Logistics (Wuhan) Co., Ltd. ("Wuhan Baowan"),Shenyang Baowan International Logistics Co., Ltd. ("Shenyang Baowan") and Baowan Logistics (Wuhan) Yangluo Co., Ltd. ("Yangluo
Baowan"),subsidiaries of the Company, are small scale taxpayers. The Company and the rest ofits subsidiaries are general taxpayers.
Pursuant toTransportation and Modern Service Industry Business Tax to VAT Pilot Reform in Shanghai (Cai Shui[2011] No. 111) issued by the MoF and State
Administration of Taxation ("SAT"), Shanghai Baowan International Logistics Co., Ltd. ("Shanghai Baowan") and Mingjiang (Shanghai) International Logistics Co., Ltd. ("Mingjiang International"), subsidiaries of the Company located in Shanghai, have been leviedon VAT instead of business tax since 1 January 2012.
Pursuant to Transportation and Modern Service Industry Business Tax to VAT Pilot Reform in Beijing and Other Eight Provinces (Cai Shui[2012] No. 71) issued by the MoF and SAT, the Company's subsidiaries, namely Kunshan Baowan International Logistics Co., Ltd. ("Kunshan Baowan"), Nanjing Baowan International Logistics Co., Ltd. ("Nanjing Baowan") and Nantong Baowan located in Jiangsu Provincehave been levied on VAT instead of business tax since 1 October 2012; Shenzhen Baowan International Logistics Co., Ltd. ("Shenzhen Baowan") and Guangzhou Baowan Logistics Co., Ltd. ("Guangzhou Baowan") located in Guangdong Province,have been levied on VAT instead of business tax since 1 November 2012; Tianjin Baowan International Logistics Co., Ltd. ("Tianjin Baowan"), Bingang Baowan and Qingwu Baowan located in Tianjin, and Wuhan Baowan located in Hubei Province, have been levied on VAT instead of business tax since 1 December 2012.
Pursuant to Transportation and Modern Service Industry Business Tax to VAT Pilot Policy Nationwide(Cai Shui[2013] No. 37) issued by the MoF and SAT, the Company's subsidiaries, namely Langfang Baowan International Logistics Co., Ltd. ("Langfang Baowan") located in Hebei Province, Chengdu Longquan Baowan International Logistics Co., Ltd. ("Longquan Baowan") and Chengdu Xindu Baowan International Logistics Co., Ltd. ("Xindu Baowan") located in Sichuan Province, have been levied on VAT instead of business tax since 1 August 2013.
Stack (storage), loading and unloading and port management service provided by the Company and storage service provided by its subsidiaries pertain to VAT taxable logistics auxiliary service. For the Company and subsidiaries recognised as general taxpayers, the applicable VAT rate is6%; delivery service provided by subsidiaries pertains to VAT
taxable overland delivery service, for subsidiaries recognised as general taxpayers, the
applicable VAT rate is11%; for subsidiaries recognised as small scale taxpayers, the
applicable VAT rate for aforesaid service is3%.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(IV) TAXES - continued
Major categories of taxes and tax rates- continued
Note 2: The Company and its subsidiariesadopted enterprise income tax rate of25% in 2013. Shanghai Baowan, subsidiary of the Company, was levied on assessment basis for enterprise income tax in 2012. Itstaxable income was based on10% of its operating income.In 2013, Shanghai Baowan'senterprise income tax is levied on taxable incomeat the income tax rateof25%.
Note 3: Pursuant to Urban Land Use Tax Policy on the Logistics Enterprises with Commodity Warehousing Facilities (Cai Shui[2012] No. 13) issued by the MoF and SAT, from 1 January 2012 to 31 December 2014, the Group as a logistics enterprise, of which land being used for commodity warehousing facilities (including owner-occupied and rental) should be levied on urban land use tax based on50% of applicable tax rate of different land grades.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(V) BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS
1. Information of subsidiaries
(1)Subsidiaries established or acquired through investments
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of the subsidiary|Type|Place ofincorporation|Nature ofbusiness|Registeredcapital(10,000.00Yuan)|Businessscope|Actual capitalcontribution atthe end of theperiod(10,000.00Yuan)||Balance of|Proportionofownershipinterest(%)|Proportionof votingpower (%)|Consolidatedor not|Minorityinterests(10,000.00Yuan)|Amount of theminority interestsused to absorbprofits or lossesattributable tominorityinterests(10,000.00Yuan)|
|||||||||other||||||
|||||||||items, that||||||
|||||||||in||||||
|||||||||substance,||||||
|||||||||constitutes||||||
|||||||||net||||||
|||||||||investment||||||
|||||||||in the||||||
|||||||||subsidiary||||||
|Baowan Holdings|Limitedcompany|Shenzhen,Guangdong|Investmentholdings|50,000|Investmentholdings|83,053|-||77.36|77.36|Yes|27,840|-|
|Shanghai Baowan|Limitedcompany|Shanghai|Logisticsservice|16,000|Storage,stack|16,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Guangzhou Baowan|Limitedcompany|Guangzhou,Guangdong|Logisticsservice|15,000|Storage,stack|15,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Kunshan Baowan|Limitedcompany|Kunshan,Jiangsu|Logisticsservice|12,000|Storage,stack|12,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Tianjin Baowan|Limitedcompany|Tianjin|Logisticsservice|15,000|Storage,stack|15,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Langfang Baowan|Limitedcompany|Langfang,Hebei|Logisticsservice|9,000|Storage,stack|9,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Longquan Baowan|Limitedcompany|Chengdu,Sichuan|Logisticsservice|10,000|Storage,stack|10,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Xindu Baowan|Limitedcompany|Chengdu,Sichuan|Logisticsservice|6,000|Storage,stack|6,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Nanjing Baowan(notes 1)|Limitedcompany|Nanjing,Jiangsu|Logisticsservice|13,000|Storage,stack|13,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Bingang Baowan(notes 1)|Limitedcompany|Tianjin|Logisticsservice|5,000|Storage,stack|5,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Nantong Baowan (notes 1)|Limitedcompany|Nantong,Jiangsu|Logisticsservice|40,000|Storage,stack|40,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Wuhan Baowan (notes 1)|Limitedcompany|Wuhan,Hubei|Logisticsservice|10,000|Storage,stack|10,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Qingwu Baowan (notes 1)|Limitedcompany|Tianjin|Logisticsservice|5,000|Storage,stack|5,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Shenyang Baowan (notes 1)|Limitedcompany|Shenyang,Liaoning|Logisticsservice|10,000|Storage,stack|10,000|-||100.00|100.00|Yes|Not applicable|Not applicable|
|Yangluo Baowan (notes 1 and 2)|Limitedcompany|Wuhan,Hubei|Logisticsservice|10,000|Storage,stack|10,000|-||100.00|100.00|Yes|Not applicable|Not applicable|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(V) BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS - continued
1. Information of subsidiaries - continued
(2) Subsidiaries acquired through business combination involving enterprises under common control
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of the subsidiary|Type|Place ofincorporation|Nature ofbusiness|Registeredcapital(10,000.00 Yuan)|Businessscope|Actualcapitalcontributionat the end oftheperiod(10,000.00 Yuan)|Balance ofother items,that insubstance,constitutesnetinvestmentin thesubsidiary|Proportionofownershipinterest (%)|Proportionof votingpower (%)|Consolidatedor not|Minorityinterests(10,000.00 Yuan)||Amount of|
||||||||||||||the minority|
||||||||||||||interests used|
||||||||||||||to absorb|
||||||||||||||profits or|
||||||||||||||losses|
||||||||||||||attributable|
||||||||||||||to minority|
||||||||||||||interests(10,0|
||||||||||||||00.00 Yuan)|
|Shenzhen Baowan|Limitedcompany|Shenzhen,Guangdong|Logisticsservice|3,441|Storage,stack|4,127|-|100.00|100.00|Yes|Not applicable|Notapplicable||
|Mingjiang International.|Limitedcompany|Shanghai|Logisticsservice|12,000|Storage,stack|10,667|-|100.00|100.00|Yes|Not applicable|Notapplicable||

 Note 1: As of 31 December 2013, these subsidiaries are still instart-up stage.
Note 2: On 6 June 2013, Yangluo Baowanwas established by Baowan Holdings in Wuhan City, Hubei Province. The registered capital of Yangluo Baowanis RMB100,000,000.00. The Company holds100% equity interests of the subsidiary which has been included in the scope of the consolidated financial statements for the reporting period.
2. New entity that has been consolidated in the current period
Unit: RMB
||||||
|-|-|-|-|-|
|Name||Net assets at the end of the period||Net losses for the current period|
|Yangluo Baowan|99,977,447.04||22,552.96||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1.Cash and bank balances
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||Closing balance|||||Opening balance||||
|||Foreign currency|||Exchange|Amount in RMB|Foreign currency|||Exchange|Amount in RMB|
||Item||Foreign currency||rate|||||rate||
||Cash:|||||||||||
||RMB|||||13,971.13|||||16,827.42|
||Hong Kong Dollar|46.12||0.79||36.26|45.13||0.81||36.56|
||Euro|391.75||8.42||3,298.10|390.24||8.32||3,246.80|
||Sub-total|||||17,305.49|||||20,110.78|
||Bank balances:|||||||||||
||RMB|||||232,820,749.34|||||891,221,736.59|
||United States Dollar|62,766.43||6.10||382,680.65|64,469.07||6.29||405,510.45|
||Hong Kong Dollar|136,028.22||0.79||106,945.38|2,100,966.05||0.81||1,701,782.50|
||Sub-total|||||233,310,375.37|||||893,329,029.54|
||Other monetary funds:|||||||||||
||RMB|||||5,000.00|||||5,000.00|
||Sub-total|||||5,000.00|||||5,000.00|
||Total|||||233,332,680.86|||||893,354,140.32|

 Note: Other monetary fundsare therefundable deposits of credit cards.
2. Accounts receivable
(1) Disclosure of accounts receivable by categories:
Unit: RMB
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Category|||Closing balance|||||||Opening balance|||||||
||||Carrying amount|||Bad debt provision||||Carrying amount||||Bad debt provision|||
|||PAmount||roportion|Amount|||Proportion|Amount||P|roportion|Amount|||Proportion|
||Category|||(%)||||(%)||Amount||(%)||||(%)|
|ipi|Accounts receivable that are|-||-|-||-||-||-||-||-||
||ndividually significant and||||||||||||||||
||rovided for bad debt||||||||||||||||
||ndividually||||||||||||||||
||Accounts receivable for which bad debt provision has been assessed by portfolios||||||||||||||||
|P|ortfolio 1|-||-|-||-||-||-||-||-||
|P|ortfolio 2|55,919,181.02||99.71|559,191.88||1.00||53,319,932.70||99.28||533,199.33||1.00||
|S|ubtotal of portfolios|55,919,181.02||99.71|559,191.88||1.00||53,319,932.70||99.28||533,199.33||1.00||
|ib|Accounts receivable that are not|164,138.37||0.29|164,138.37||100.00||386,523.37||0.72||164,214.60||42.49||
||ndividually significant but for||||||||||||||||
||which bad debt provision has||||||||||||||||
||een assessed individually||||||||||||||||
|T|otal|56,083,319.39||100.00|723,330.25||1.29||53,706,456.07||100.00||697,413.93||1.30||

 Aging analysis of accounts receivable is as follows:
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging||Closing balance||||||||Opening balance|||||
|||Amount||Proportion||Bad debt||Carrying|Amount||Proportion(%)|Bad debt||Carrying|
||Aging|||(%)||provision||amount||||provision||amount|
||Within 1 year|55,836,511.02|99.56||558,365.18||55,278,145.84||53,295,703.70||99.24|532,957.04|52,762,746.66||
|n|More than 1 year but|82,670.00|0.15||826.70||81,843.30||4,450.00||0.01|44.50|4,405.50||
||ot exceeding 2 years||||||||||||||
|n|More than 2 years but|-|-||-||-||386,523.37||0.72|164,214.60|222,308.77||
||ot exceeding 3 years||||||||||||||
||More than 3 years|164,138.37|0.29||164,138.37||-||19,779.00||0.03|197.79|19,581.21||
|T|otal|56,083,319.39|100.00||723,330.25||55,359,989.14||53,706,456.07||100.00|697,413.93|53,009,042.14||

Accounts receivable portfolios for which bad debt provision has been assessed using the
percentage of accountsreceivable method:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Name of portfolio||Carrying amount||Proportion ofprovision (%)|Bad debt provision|
||Name of portfolio|||||
||Based on percentage of accounts balances|55,919,181.02|1.00||559,191.88|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 2. Accounts receivable - continued
(2) No accounts receivable are duefrom shareholders holding at least5% of the Company's shares with voting power in the reporting period.
(3) Top five entities with the largest balances of accounts receivable
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Name of entity||Relationshipwith theCompany|Amount|Age||Proportion of the|
|||||||amount to the total|
|||||||accounts|
||Name of entity|||||receivable(%)|
||Shenzhen Weisheng Offshore Oil Technology Co.,Ltd.|Customer|17,426,334.72|Within 1 year|31.07||
||Shenzhen Chiwan Sembawang Engineering Co., Ltd.|Associate|3,854,041.82|Within 1 year|6.87||
||("CSE")||||||
||Wuhan Watsons Personal Care Providers Ltd.|Customer|2,644,038.35|Within 1 year|4.71||
||CACT Operators Group|Customer|2,452,531.86|Within 1 year|4.37||
||Husky Oil China Ltd.|Customer|2,201,344.95|Within 1 year|3.93||
||Total||28,578,291.70||50.95||

 (4) Accounts receivable from related parties
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Name of entity||Relationshipwith theCompany|Amount||Proportion of the|
||||||amount to the total|
||||||accounts|
||Name of entity||||receivable(%)|
||CSE|Associate|3,854,041.82|6.87||
||Shenzhen Chiwan Offshore Petroleum Engineering Co.,|Associate|366,834.89|0.65||
||Ltd. ("CPEC")|||||
||Shenzhen Nanshan Real Estate Development Ltd.|Related Party|6,390.32|0.01||
||("Nanshan Real Estate Company")|||||
||Total||4,227,267.03|7.53||

 (5) Accounts receivable written off in the reporting period
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Debtor||Nature of the accountsreceivable|Write-offamounts|Reasons forwrite-off||Whether it arises|
|||||||from related party|
||Debtor|||||transactions|
||China Oilfield Services Limited|Due from business trading|9,915.00|Failure to recover|No||
||Individual|Due from business trading|5,508.00|Failure to recover|No||
||China United Network Communications|Due from business trading|3,450.00|Failure to recover|No||
||Group Co., Ltd. Shenzhen branch||||||
||Total||18,873.00||||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 3. Prepayments
(1)Aging analysis of prepayments is as follows:
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Aging||Closing balance||||Opening balance||
|||Amount||Proportion(|Amount||Proportion(%)|
||Aging|Amount||%)||||
||Within 1 year|458,172.03|82.94||322,124.37||70.49|
||More than 3 years|94,259.56|17.06||134,872.36||29.51|
||Total|552,431.59|100.00||456,996.73||100.00|

 (2)No prepayments are due from shareholders holding at least5% of the Company's shares with voting power in the reporting period.
4. Dividends receivable
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item||Openingbalance||Increase in|Decrease in thecurrent period|Closingbalance||Reasons for||Whether|
|||||the current||||uncollected||the amount|
||Item|||period||||amounts||is impaired|
||Dividends receivable aged|-|70,400,000.00||22,400,000.00|48,000,000.00|||||
||within 1 year||||||||||
|Including: CSE||-|70,400,000.00||22,400,000.00|48,000,000.00|Announcedbut not yetdistributed||No||

5. Other receivables
(1)Disclosure of other receivables by categories:
Unit: RMB
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Category|||Closing balance||||||||Opening balance|||||||
||||Carrying amount||||Bad debt provision||||Carrying amount||||Bad debt provision|||
|||Amount|||Proporti|Amount|||Proportio|Amount|||Proporti|Amount|||Proportion|
||||||on(%)||||n(%)||||on(%)||||(%)|
|Other receivables that areindividually significant and forwhich bad debt provision hasbeen assessed individually||-||-||-||-||-||-||-||-||
||Other receivables for which bad debt provision has been assessed by portfolios|||||||||||||||||
||Portfolio 1|55,671,924.14||90.20||-||-||4,815,553.14||56.81||-||-||
||Portfolio 2|6,046,639.06||9.80||60,466.39||1.00||3,660,539.63||43.19||36,605.40||1.00||
||Subtotal of portfolios|61,718,563.20||100.00||60,466.39||0.66||8,476,092.77||100.00||36,605.40||0.43||
|Other receivables that are notindividually significant but forwhich bad debt provision hasbeen assessed individually||-||-||-||-||-||-||-||-||
||Total|61,718,563.20||100.00||60,466.39||0.66||8,476,092.77||100.00||36,605.40||0.43||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 5. Other receivables- continued
Aging analysis of other receivables is as follows:
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging||Closing balance|||||||Opening balance||||||
||Amount|||Proportion||Bad debt|Carryingamount|Amount|||Proportion|Bad debtprovision||Carrying|
|||||(%)||provision|||||(%)|||amount|
|Within 1 year|58,189,076.92||94.28||34,175.48||58,154,901.44|6,158,401.51||72.65||13,428.49|6,144,973.02||
|More than 1 year but notexceeding 2 years|2,409,896.42||3.91||24,019.63||2,385,876.79|939,125.14||11.08||9,391.25|929,733.89||
|More than 2 years butnot exceeding 3 years|736,179.41||1.19||262.98||735,916.43|653,957.39||7.72||6,539.57|647,417.82||
|More than 3 years|383,410.45||0.62||2,008.30||381,402.15|724,608.73||8.55||7,246.09|717,362.64||
|Total|61,718,563.20||100.00||60,466.39||61,658,096.81|8,476,092.77||100.00||36,605.40|8,439,487.37||

 Other receivables portfolios for which bad debt provision has been assessed using the percentage of accounts receivable method:
Unit: RMB
||||||
|-|-|-|-|-|
|Name of portfolio|Carrying amount||Proportion of|Bad debt provision|
||||provision (%)||
|Based on percentage of accounts balances|6,046,639.06|1.00||60,466.39|

 (2)No other receivables are due from shareholders holding at least5% of the Company's shares with voting power in the reporting period.
(3)Top five entities with the largest balances of other receivables
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Name of entity|Relationshipwith theCompany|Amount|Age||Proportion of|
||||||the amount to|
||||||the total other|
||||||receivables (%)|
|Nanjing Lukou Airport Investment andDevelopment Co., Ltd.|Non-relatedparty|52,552,880.00|Within 1 year|85.15||
|Construction and Environment ManagementBureau of Guangzhou Development Zone|Governmentagency|1,302,690.00|Within 1 year|3.33||
|People's Government of Wuhan HannanDistrict|Governmentagency|1,000,000.00|1 - 2 years|2.55||
|Peoples Insurance Company of China|Supplier|760,000.00|Within 1 year|1.94||
|China Building Technique Group Co., Ltd.|Supplier|500,259.68|1 - 2 years|1.28||
|Total||56,115,829.68||94.25||

 (4) See note (VII) 6(1) for other receivables due from related parties.
6. Inventories
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|||Provision for|Net carryingamount||Provision for||
||Gross carrying|decline in value of||Gross carrying|decline in value of|Net carrying|
||amount|inventories||amount|inventories|amount|
|Maintenance accessories|866,059.32|-|866,059.32|650,600.25|-|650,600.25|
|Raw materials|130,297.23|-|130,297.23|419,121.56|-|419,121.56|
|Total|996,356.55|-|996,356.55|1,069,721.81|-|1,069,721.81|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 7. Other current assets
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Bank financing products (note)|547,610,000.00||370,000,000.00||
|Others|-||86,712.21||
|Total|547,610,000.00||370,086,712.21||

 Note: Other current assets are bank financing products purchased by the Group.The expected annualised rates of return are between3.50% and5.50% and the maturities are between 29 and 126 days.
8. Investments in joint ventures and associates
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Proportion of|Proportion of||||||
||ownership|voting power||||||
||interest held|in the investee|Investee's total assets|Investee's total||||
||by the Group|held by the|at the end of the|liabilities at the end|Total net assets at the|Total operating|Net profit for the|
|Name of investee|(%)|Group (%)|period|of the period|end of the period|income for the period|period|
|Associates||||||||
||32.00|32.00|1,441,173,749.03|149,385,573.15|1,291,788,175.88|847,771,058.40|189,826,570.57|
|CSE||||||||
||20.00|20.00|1,908,559,441.61|1,403,033,745.86|505,525,695.75|19,442,819.95|5,525,695.75|
|China Development||||||||
|Finance Co., Ltd.||||||||
|("CDFC") (note 1)||||||||
||20.00|20.00|33,909,109.10|5,586,839.47|28,322,269.63|49,173,303.70|3,861,858.67|
|CPEC (note 2)||||||||

 Note 1: In June 2012, the Company entered into Investment Contribution Agreement on Jointly Setting Up China Development Finance Co., Ltd. with Nanshan Group, Shenzhen Chiwan Wharf Holdings Co., Ltd. ("Chiwan Wharf Company") and Yahgee Modular House Co., Ltd. ("Yahgee Company") for jointly setting up CDFC. According to the agreement, the registered capital of CDFC is RMB500,000,000.00, of which Nanshan Group invested RMB200,000,000.00(40% of the total contribution), the Company, Chiwan Wharf Company and Yahgee Company invested RMB100,000,000.00 respectively(20% of the total contribution respectively).The aforesaid registered capital has been verified by Da Hua Certified Public Accountants, which has issued Capital Verification Report (Ref No.: Da Hua (Shen) Yan Zi[2012] No. 057). On24July 2013, CDFChas acquired the business license.
Note 2: Pursuant to the approval by the board of directors' resolution, CPEC, whose previous full name was Shenzhen Chiwan Offshore Petroleum Equipment Repair/Manufacture Co., Ltd., has changed its full name to Shenzhen Chiwan Offshore Petroleum Engineering Co., Ltd. since 8 March 2013.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
9. Long-term equity investments
(1)Details of long-term equity investments are as follows:
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee||Accountingmethod|Investment cost|Opening balance|Changes|Closing balance|Proportion ofownershipinterest in theinvestee (%)|Proportion ofvoting power inthe investee (%)|t|Explanation of|Provisionforimpairmentlosses|Provision forimpairmentlosses for theperiod|Cash dividendsfor the period|
|||||||||||he inconsistency||||
|||||||||||between the||||
|||||||||||proportion of||||
|||||||||||ownership||||
|||||||||||interest and the||||
|||||||||||proportion of||||
|||||||||||voting power||||
|CSE||Equitymethod|79,488,000.00|379,088,864.51|(9,655,497.42)|369,433,367.09|32.00|32.00|Not applicable||-|-|70,400,000.00|
|CDFC||Equitymethod|100,000,000.00|100,000,000.00|1,105,139.15|101,105,139.15|20.00|20.00|Not applicable||-|-|-|
|CPEC||Equitymethod|3,312,000.00|4,942,817.42|772,371.73|5,715,189.15|20.00|20.00|Not applicable||-|-|-|
|T|otal||182,800,000.00|484,031,681.93|(7,777,986.54)|476,253,695.39|||||-|-|70,400,000.00|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 10. Investment properties
Investment properties measured at cost
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|||Opening carrying||Increase in the||Decrease in the||Closing carrying|
||Item||amount||current period||current period||amount|
||I. Total original carrying amount|1,173,964,865.89||5,662,466.51||5,676,605.91||1,173,950,726.49||
||Including: Buildings|1,173,964,865.89||5,662,466.51||5,676,605.91||1,173,950,726.49||
||II. Total accumulated depreciation|234,274,211.44||35,460,059.65||-||269,734,271.09||
||Including: Buildings|234,274,211.44||35,460,059.65||-||269,734,271.09||
||III. Total net book value of|939,690,654.45||||||904,216,455.40||
||investment properties|||||||||
||Including: Buildings|939,690,654.45||||||904,216,455.40||
||IV. Total accumulated provision for|-||-||-||-||
||impairment losses of investment|||||||||
||properties|||||||||
||Including: Buildings|-||-||-||-||
||V. Total carrying amounts of|939,690,654.45||||||904,216,455.40||
||investment properties|||||||||
||Including: Buildings|939,690,654.45||||||904,216,455.40||

 Note 1: The increase in the original carrying amount for the current period consists of an increase of RMB5,662,466.51on transfer fromconstruction in progress anda decrease of RMB5,676,605.91due to adjustments on final completion settlement.
Depreciation newly made for the current period is RMB35,460,059.65.
Note 2: As at 31 December 2013, the procedures to obtain certificate of title of investment properties with the carrying amount of RMB168,148,402.77(the net book value of RMB150,577,944.15) are still in progress due to the unfinished settlement procedures of the buildings; investment properties with the carrying amount of
RMB251,572,177.82(the net book value of RMB120,910,290.01)are built on the land leased from Nanshan Group, the controlling shareholder of the Company, and thereby the certificate of title is not available. See note (VI) 13 for details.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 11. Fixed assets
Unit: RMB
||||||
|-|-|-|-|-|
||Opening carrying|Increase in the|Decrease in the|Closing carrying|
|Item|amount|current period|current period|amount|
|I. Total original carrying amount|774,720,219.06|12,995,734.87|6,189,291.94|781,526,661.99|
|Including: Buildings|471,259,838.22|6,629,751.09|703,627.42|477,185,961.89|
|Port facilities|46,462,519.33|-|-|46,462,519.33|
|Machinery and equipment|147,283,948.33|2,569,422.94|4,659,097.07|145,194,274.20|
|Transportation vehicles|18,226,530.85|2,158,000.17|312,923.26|20,071,607.76|
|Fixed assets decorations|13,767,664.19|-|-|13,767,664.19|
|Office and other equipment|77,719,718.14|1,638,560.67|513,644.19|78,844,634.62|
|II. Total accumulated depreciation|229,845,202.59|40,231,382.98|4,928,378.04|265,148,207.53|
|Including: Buildings|72,426,599.39|20,230,818.00|9,232.45|92,648,184.94|
|Port facilities|32,295,125.39|945,634.32|-|33,240,759.71|
|Machinery and equipment|59,285,280.06|12,265,672.83|4,166,263.81|67,384,689.08|
|Transportation vehicles|10,375,368.53|2,146,991.87|297,277.10|12,225,083.30|
|Fixed assets decorations|13,767,664.19|-|-|13,767,664.19|
|Office and other equipment|41,695,165.03|4,642,265.96|455,604.68|45,881,826.31|
|III. Total net book value of fixed assets|544,875,016.47|||516,378,454.46|
|Including: Buildings|398,833,238.83|||384,537,776.95|
|Port facilities|14,167,393.94|||13,221,759.62|
|Machinery and equipment|87,998,668.27|||77,809,585.12|
|Transportation vehicles|7,851,162.32|||7,846,524.46|
|Fixed assets decorations|-|||-|
|Office and other equipment|36,024,553.11|||32,962,808.31|
|IV．Total Provision for impairment losses|-|-|-|-|
|Including: Buildings|-|-|-|-|
|Port facilities|-|-|-|-|
|Machinery and equipment|-|-|-|-|
|Transportation vehicles|-|-|-|-|
|Fixed assets decorations|-|-|-|-|
|Office and other equipment|-|-|-|-|
|V. Total carrying amount of fixed assets|544,875,016.47|||516,378,454.46|
|Including: Buildings|398,833,238.83|||384,537,776.95|
|Port facilities|14,167,393.94|||13,221,759.62|
|Machinery and equipment|87,998,668.27|||77,809,585.12|
|Transportation vehicles|7,851,162.32|||7,846,524.46|
|Fixed assets decorations|-|||-|
|Office and other equipment|36,024,553.11|||32,962,808.31|

 Note1: The increase in the original carrying amount for the current period consists of RMB7,272,623.79due to acquisitions andRMB5,723,111.08due to transfer from construction in progress.
The decrease in the original carrying amount for the current period consists of RMB5,495,382.89 due to disposals and RMB693,909.05due to adjustments on final completion settlement.
The increase in accumulated depreciation for the current period consists of charge for the
current period of RMB40, 231,382.98.
The decrease in accumulated depreciation for the current period consists of RMB4,
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
928,378.04due to disposals.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 11. Fixed assets - continued
Note 2: As at 31 December 2013, the procedures to obtain certificate of title of fixed assets with the carrying amount of RMB28,153,902.49 (the net book value of RMB26,287,487.19) are still in progress due to the unfinished settlement procedures of the buildings; fixed assets with the carrying amount of RMB16,508,053.97 (the net book value
ofRMB8,819,058.33) are built on the land leased from Nanshan Group, the controlling shareholder of the Company, and thereby the certificate of title is not available. See note (VI) 13 for details.
12.Construction in progress
(1)Details of construction in progress are as follows:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|||Provision for|||Provision for||
|||impairment|Net carrying||impairment|Net carrying|
|Item|Carrying amount|losses|amount|Carrying amount|losses|amount|
|Guangzhou Baowan lot A logistic|199,349,637.54|-|199,349,637.54|2,842,450.24|-|2,842,450.24|
|park construction|||||||
|Nanjing Baowan logistic park|63,482,722.70|-|63,482,722.70|10,291,693.92|-|10,291,693.92|
|construction|||||||
|Longquan Baowan logistic park|48,716,488.49|-|48,716,488.49|2,013,451.81|-|2,013,451.81|
|construction|||||||
|Bingang Baowan logistic park|25,497,427.30|-|25,497,427.30|1,024,600.00|-|1,024,600.00|
|construction|||||||
|Wuhan Baowan logistic park|22,084,639.62|-|22,084,639.62|121,410.26|-|121,410.26|
|construction|||||||
|Nantong Baowan logistic park|9,040,855.12|-|9,040,855.12|40,000.00|-|40,000.00|
|construction|||||||
|Shenyang Baowan logistic park|46,090.10|-|46,090.10|26,090.10|-|26,090.10|
|construction|||||||
|Other miscellaneous|7,900,598.15|-|7,900,598.15|4,023,068.78|-|4,023,068.78|
|constructions|||||||
|Total|376,118,459.02|-|376,118,459.02|20,382,765.11|-|20,382,765.11|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
11.Construction in progress - continued
(2) Changes in constructioninprogress
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Amount injected||||Interest|||
||||||Transferred to||as a proportion||Amount of|Including:|capitalisation|||
||||Increase in the|Transferred to|investment||of budget|Construction|accumulated|capitalised interest|rate for the|||
|Item name|Budget amount|Opening balance|current period|fixed assets|properties|Other reduction|amount (%)|progress|capitalised interest|for the period|period (%)|Source of funds|Closing balance|
|Guangzhou Baowan lot A logistic|445,420,000.00|2,842,450.24|196,507,187.30|-|-|-|44.76|44.76|3,625,128.28|3,625,128.28|4.5284|Self-financingand borrowings|199,349,637.54|
|park construction||||||||||||||
|Nanjing Baowan logistic park|305,630,000.00|10,291,693.92|53,191,028.78|-|-|-|20.77|20.77|390,138.27|363,437.12|5.8075|Self-financingand borrowings|63,482,722.70|
|construction||||||||||||||
|Longquan Baowan logistic park|319,070,000.00|2,013,451.81|46,703,036.68|-|-|-|15.27|15.27|11,586,633.59|3,592,375.32|5.6131|Self-financingand borrowings|48,716,488.49|
|construction||||||||||||||
|Bingang Baowan logistic park|343,600,000.00|1,024,600.00|24,472,827.30|-|-|-|7.42|7.42|-|-|-|Self-financingand borrowings|25,497,427.30|
|construction||||||||||||||
|Wuhan Baowan logistic park|463,710,000.00|121,410.26|21,963,229.36|-|-|-|4.76|4.76|79,724.45|79,724.45|5.8225|Self-financingand borrowings|22,084,639.62|
|construction||||||||||||||
|Nantong Baowan logistic park|341,040,000.00|40,000.00|9,000,855.12|-|-|-|2.65|2.65|-|-|-|Self-financingand borrowings|9,040,855.12|
|construction||||||||||||||
|Shenyang Baowan logistic park|433,240,000.00|26,090.10|20,000.00|-|-|-|0.01|0.01|-|-|-|Self-financingand borrowings|46,090.10|
|construction||||||||||||||
|Other miscellaneous constructions|Not applicable|4,023,068.78|18,500,320.08|5,723,111.08|5,662,466.51|3,237,213.12|Not applicable|Not applicable|-|-|Not applicable|Self-financing|7,900,598.15|
|Total|2,651,710,000.00|20,382,765.11|370,358,484.62|5,723,111.08|5,662,466.51|3,237,213.12|||15,681,624.59|7,660,665.17|||376,118,459.02|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 13. Intangible assets
Unit: RMB
||||||
|-|-|-|-|-|
||Opening carrying|Increase in the current|Decrease in the|Closing carrying|
|Item|amount|period|current period|amount|
|I. Total original carrying amount|1,226,862,430.11|366,874,048.94|-|1,593,736,479.05|
|Including: Land use rights|1,224,920,706.39|366,874,048.94|-|1,591,794,755.33|
|Trademarks|230,500.00|-|-|230,500.00|
|Software|1,711,223.72|-|-|1,711,223.72|
|II. Total accumulated amortisation|315,623,247.19|36,009,198.34|-|351,632,445.53|
|Including: Land use rights|314,493,057.28|35,770,718.49|-|350,263,775.77|
|Trademarks|140,391.42|23,049.96|-|163,441.38|
|Software|989,798.49|215,429.89|-|1,205,228.38|
|III. Total net book value of|911,239,182.92|||1,242,104,033.52|
|intangible assets|||||
|Including: Land use rights|910,427,649.11|||1,241,530,979.56|
|Trademarks|90,108.58|||67,058.62|
|Software|721,425.23|||505,995.34|
|IV．Total Provision for impairment|-|-|-|-|
|losses|||||
|Including: Land use rights|-|-|-|-|
|Trademarks|-|-|-|-|
|Software|-|-|-|-|
|IV. Total carrying amount of|911,239,182.92|||1,242,104,033.52|
|intangible assets|||||
|Including: Land use rights|910,427,649.11|||1,241,530,979.56|
|Trademarks|90,108.58|||67,058.62|
|Software|721,425.23|||505,995.34|

 Note 1: The land use right and dock use right of the Company's headquarterwith the original carrying amount of RMB560,459,483.17(the net book value of RMB313,181,750.30) are assets leased from Nanshan Group, the controlling shareholder of the Company. In 1984, Nanshan Group contributed the land use right and dock use right for 25 years as the investment capital to the Company. The term of the use rights expired on 15 July 2009. On 18 July 2006, the Company and Nanshan Group entered intoAgreement on Land Use, which specifies that the Company can continue to lease the land and dock by means of operating lease after the expiration. The lease term is 25 years that starts from 15 July 2009 and ends on14 July 2034. The Company has paid off all the rentals in a lump sum. As at31 December 2013, Nanshan Group has not obtained the use right certificate of the above mentioned land and dock.
Note 2: The use right of the eastern landwith the original carrying amount of
RMB36,110,385.42(the net book value of RMB12,397,899.60) is an asset leased from Nanshan Group, the controlling shareholder of the Company, by means of operating lease in 1997. The lease term is 25 years from 1 August 1997 to 31 July 2022. The Company has paid off all the rentals in a lump sum. Given that Nanshan Group has not obtained the use right certificateof the mentioned land, in addition to the guarantee of the Company's
legal use right on the land, Nanshan Group entered into anAgreementon Immunity from
Liabilities Caused by the Land Usewith the Company on 18 July 1997, agreeing to
compensate the Company for any losses, expenditures and liabilities associated with the
leased land. As at31 December 2013, Nanshan Group has not obtained use right
certificate of the above mentioned land and dock.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 13. Intangible assets - continued
Note 3: The increase in the original carrying amount for the current period consists of RMB366,874,048.94 due to acquisitions. The increase in accumulated amortisation for the current period consists of charge for the current period of RMB36, 009,198.34. 14. Deferred tax assets
(1)Recognised deferred tax assets
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Deferred tax assetsat the end of thereporting period||Deductible|Deferred tax assetsat the beginning ofthe reportingperiod||Deductible|
|||||temporary|||temporary|
|||||differences at the|||differences at the|
|||||end of the|||beginning of the|
||Item|||reporting period|||reporting period|
||Deferred tax assets:|||||||
||Provision for impairment|170,375.73|681,502.93||155,859.16|623,436.64||
||losses of assets|||||||
||Intangible assets|7,103.78|28,415.11||9,405.15|37,620.61||
||amortisation|||||||
||Deductible losses|16,235,767.44|64,943,069.76||16,998,176.81|67,992,707.23||
||Total|16,413,246.95|65,652,987.80||17,163,441.12|68,653,764.48||

 According to the profit forecast, the Group believes that it is probable that sufficient taxable profits will be available in future periods to offset the deductible temporary differences and deductible losses. Therefore, the related deferred tax assets are recognised.
(2)Details of unrecognised deferred tax assets
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Deductible temporary differences|102,293.71||110,582.69||
|Deductible losses|-||5,980,832.14||
|Total|102,293.71||6,091,414.83||

 (3)Deductible losses, for which no deferred tax assets are recognised, will expire in the following year Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Year||Closing balance||Opening balance||Remarks|
|2014||-||5,980,832.14||Recovery of previouslossesbyprofitsmade in the currentperiod||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 15.Details of provision for impairment losses of assets
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|||Opening||Increase in|Decrease in the current period|||Closing|
||||carrying||the current||||carrying|
|||||||Reversals|Write-off|||
||Item||amount||period||||amount|
||Bad debts provision for|697,413.93||206,344.12||161,554.80|18,873.00|723,330.25||
||accounts receivable|||||||||
||Bad debts provision for|36,605.40||26,918.78||3,057.79|-|60,466.39||
||other receivables|||||||||
||Total|734,019.33||233,262.90||164,612.59|18,873.00|783,796.64||

 16. Other non-current assets
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Prepayments forconstruction|16,688,269.48||-||
|Prepayments for land use rights (note)|-||231,533,242.11||
|Others|585,092.78||763,150.86||
|Total|69,826,242.26||232,296,392.97||

 Note: Opening balance represents prepayments for land use rights of the Company's subsidiaries, namely Wuhan Baowan, Shenyang Baowan, Nanjing Baowan, Nantong Baowan and Bingang Baowan. The aforesaid subsidiaries have acquired the land use rights in January, March, April, June and September of 2013 respectively.
17.Accounts payable
(1)Details of accounts payable are as follows:
Unit: RMB
|||||
|-|-|-|-|
|Item||Closing balance|Opening balance|
||Item|||
||Rents|6,132,919.30|6,340,144.88|
||Construction costs|1,486,193.95|3,277,922.47|
||Service charges|335,614.64|457,255.83|
||Others|2,674,963.13|1,400,187.69|
||Total|10,629,691.02|11,475,510.87|

 (2)Accounts payable due to shareholders holding at least5% of the Company's shares with voting power is RMB6,132,919.30 (31 December2012: RMB6,340,144.88). See note VII 6 (2) for details of accounts payable due to related parties.
18.Receipts in advance
(1)Details of receipts in advance are as follows:
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Storage service feescollected in advance|6,057,344.09||4,391,694.77||
|Others|72,809.17||-||
|Total|6,130,153.26||4,391,694.77||

(2)No receipts in advance are received from shareholders holding at least5% of the Company's
shares with voting power or from related parties in the reporting period.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 19. Employee benefits payable
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item|||Opening|Increase in thecurrent period||Decrease in||Closing|
||||carrying|||the current||carrying|
||Item||amount|||period||amount|
||I. Wages or salaries, bonuses, allowances|17,597,039.45||70,289,731.61|59,629,059.26||28,257,711.80||
||and subsidies||||||||
||II. Staff welfare|-||5,311,047.17|5,311,047.17||-||
||III. Social security contributions|27,882.77||10,145,691.05|10,152,196.27||21,377.55||
||Including: Medical insurance|7,175.18||2,097,673.63|2,099,470.81||5,378.00||
||Basic endowment insurance|17,830.39||5,272,681.17|5,277,066.56||13,445.00||
||Annuities|-||2,088,683.50|2,088,683.50||-||
||Unemployment insurance|1,899.96||277,775.43|279,003.14||672.25||
||Work-related injury insurance|683.86||246,063.15|245,536.96||1,210.05||
||Birth insurance|293.38||162,814.17|162,435.30||672.25||
||IV. Housing funds|(152.92)||2,596,573.98|2,596,421.06||-||
||V. Expenditure for trade union and|414,013.94||2,051,563.70|1,571,016.22||894,561.42||
||employee training||||||||
||VI. Others|(623.84)||688,786.70|688,162.86||-||
||Total|18,038,159.40||91,083,394.21|79,947,902.84||29,173,650.77||

 There are no arrears in the employee benefits payable.
20. Taxes payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Enterprise income tax|39,565,976.92|13,043,986.57|
|Urban land use tax|2,739,395.77|3,333,570.61|
|Property Tax|1,961,612.84|1,963,007.56|
|Value added tax|2,446,581.15|1,501,517.54|
|City construction and maintenance tax|180,087.09|135,548.04|
|Business tax|200,492.21|379,161.62|
|Educational surcharges|144,748.77|117,157.29|
|Individual income tax|123,847.43|96,250.76|
|Others|459,065.85|500,385.28|
|Total|47,821,808.03|21,070,585.27|

 21.Interest payable
Unit: RMB
||||||
|-|-|-|-|-|
||Item|Closing balance||Opening balance|
|F|ive-year medium term note interest|19,594,520.53|19,594,520.53||
||Nanshan Group borrowings interest|6,758,208.33|6,758,208.33||
|C|orporate bond interest|1,189,716.67|1,189,716.67||
|B|ank interest|797,034.24|1,458,322.28||
|T|otal|28,339,479.77|29,000,767.81||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 22. Other payables
(1)Details of other payables are as follows:
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Construction costs|169,060,501.22||77,784,520.13||
|Deposits|39,982,668.98||32,438,455.88||
|Equipment procurement|-||2,034,000.00||
|Others|26,771,084.77||24,801,588.59||
|Total|235,814,254.97||137,058,564.60||

 (2) Other payables due to shareholders holding at least5% of the Company's shares with voting power are RMB8,201,702.79 (31 December 2012: RMB8,102,049.35). See note (VII) 6(2) for details of other payables due to related parties.
(3) Other payables aged more than one year amount to RMB17, 964,190.29,which mainly arethe construction balance andquality warranty depositswhichhavenot met the conditions of payment. 23. Non-current liabilities due within one year
(1) Details of non-current liabilities due within one year are as follows:
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Long-term borrowings due within one year|309,700,000.00||-||
|Upfront rental receipts due within one year|1,349,351.16||1,349,351.16||
|Total|311,049,351.16||1,349,351.16||

 (2) Long-term borrowings due within one year
(a) Long-term borrowings due within one year
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Unsecured and non-guaranteedloans|159,600,000.00||-||
|Guaranteed loans(note)|150,100,000.00||-||
|Total|309,700,000.00||-||

 Among long-term borrowings due within one year, there is no amountoverdue.
Note: Baowan Holdings has provided a full-amount irrevocable guarantee with joint-liability for the loans. See note (XI) 9(3) for details.
(b) Top five long-term borrowings due within one year
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Lender||Inception dateof borrowing|Maturity date|Currency|Interestrate(%)|Closing balance|||Opening balance|||
|||||||Amount in||Amount in|Amount||Amount in|
|||||||foreign||domestic|in foreign||domestic|
|||||||currency||currency|currency||currency|
||Bank of China Limited|10/11/2009|10/11/2014|RMB|5.1840||159,600,000.00|||-||
||Shenzhen Branch|||||||||||
||China Merchants|21/08/2009|21/08/2014|RMB|5.1840||150,100,000.00|||-||
||BankLimited|||||||||||
||Shenzhen Chiwan|||||||||||
||Sub-branch|||||||||||
||Total||||||309,700,000.00|||-||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 24. Long-term borrowings
(1)Categories of long-term borrowings
Unit: RMB
|||
|-|-|
|Item|Closing balance|
|Guaranteed loans (note 1 and 2)|165,048,306.62|
|Credit loans(note 1)|20,395,341.34|
|Total|185,443,647.96|

 Note1: The annual interest rates onthe above borrowingsrange from6.0800% to 6.5500% (31December2012:4.8600% to 7.4025%).
Note2: Closing balance of guaranteed loans at the amount of RMB165,048,306.62 is entitled to a full-amount irrevocable guarantee with joint-liability provided by Nanshan Group. See note (VII) 5(3) for details. Opening balance of guaranteed loans includes (i) RMB343,763,851.56 entitled to a full-amount irrevocable guarantee with joint-liability provided by Nanshan Group (see note (VII) 5(3) for details) and (ii) RMB200,000,000.00 entitled to a full-amount irrevocable guarantee with joint-liability provided by Baowan Holdings (see note (XI) 9(3) for details).
(2) Top five long-term borrowings
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Closing balance||Opening balance||
||||||Amount in|Amount in|Amount in|Amount in|
||Inception date|||Interest rate|foreign|domestic|foreign|domestic|
|Lender|of borrowing|Maturity date|Currency|(%)|currency|currency|currency|currency|
|China Development|Note 1|Note 1|RMB|Note 1||126,019,651.23||141,475,408.33|
|Bank Corporation|||||||||
|Shenzhen Branch|||||||||
|China Development|Note 2|Note 2|RMB|Note 2||39,028,655.39||1,288,443.23|
|Bank Corporation|||||||||
|Shenzhen Branch|||||||||
|Bank of China Limited|Note 3|Note 3|RMB|Note 3||20,395,341.34||-|
|Shenzhen Shekou|||||||||
|Sub-Branch|||||||||
|China Merchant Bank|13/09/2012|13/09/2015|RMB|5.8425||-||200,000,000.00|
|Shenzhen Chiwan|||||||||
|Sub-Branch (note 4)|||||||||
|China Merchant Bank|21/08/2009|21/08/2014|RMB|5.1840||-||199,500,000.00|
|Shenzhen Chiwan|||||||||
|Sub-Branch|||||||||
|Total||||||185,443,647.96||542,263,851.56|

 Note 1: Closing and opening balance were withdrawals of borrowings under the borrowings agreemententered between the Company, Mingjiang International and China
Development Bank Corporation Shenzhen Branch. Pursuant to the agreement, the total credit line is RMB200,000,000.00 and withdrawals of borrowings should be used on
construction of Mingjiang International logistics park. Over 1 year from 31 March 2012,
the Company and Mingjiang International can withdraw borrowings within the credit line
on the basis of their actual needs. The interest rate is benchmark lending rate applicable to
the above-5-year RMB loans announced by the People's Bank of China. From 2013 to
2027, borrowings should be repaid according to the repayment schedule confirmed in the
agreement.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 24. Long-term borrowings- continued
(2) Top five long-term borrowings - continued
Note 2: Closing and opening balance represent withdrawals of borrowings under the agreement entered between the Company, Longquan Baowan and China Development Bank Corporation Shenzhen Branch. Pursuant to the borrowings agreement, the total credit line is RMB120,000,000.00 and withdrawals of borrowings should be used on construction of Longquan Baowan logistics park. Over 21 months from 29 November 2012, the Company and Longquan Baowan can withdraw borrowings within the credit line on the basis of their actual needs. The interest rate is benchmark lending rate applicable to the above-5-year RMB loans announced by the People's Bank of China. From 2014 to 2027, borrowings should be repaid according to the repayment schedule confirmed in the agreement.
Note 3: Closing balance represents withdrawals of borrowings under the agreement entered between Baowan Holdings and Bank of China Limited Shenzhen Shekou Sub-Branch. Pursuant to the borrowings agreement, the total credit line is RMB240,000,000.00 and withdrawals of borrowings should be used on construction of Guangzhou Baowan lot A logistics park. Baowan Holdings can withdraw borrowings amounting to the credit line within 720 days starting from 13 September 2013. The interest rate is5% discount of benchmark lending interest rate applicable to the 3-to-5-year (including 5-year) RMB loans announced by the People's Bank of China. Baowan Holdings should repay part of the principal yearly from 2014 to 2017, i.e.RMB60,000,000.00 yearly.
Note 4: The Company has repaid all the borrowings in 2013 in advance.
25. Bonds payable
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Interest paid|||
||||Maturity|Issued amount|Opening interest|Accrued interest|during the|Closing interest||
|Name of bond|Par value|Issue date|term||payable|for the period|period|payable|Closing balance|
|Medium term note (note 1)|400,000,000.00|07/03/2012|5 years|400,000,000.00|19,594,520.53|24,000,000.00|24,000,000.00|19,594,520.53|400,000,000.00|
|Corporate bond|570,000,000.00|17/12/2012|7 years|570,000,000.00|1,189,716.67|32,946,000.00|32,946,000.00|1,189,716.67|564,195,500.00|
|(note 2)||||||||||
|Total|970,000,000.00|||970,000,000.00|20,784,237.20|56,946,000.00|56,946,000.00|20,784,237.20|964,195,500.00|

 Note 1: The Company issued the five-year medium term note, which starts from 9 March 2012 and ends on 9 March 2017, at the par value of RMB400, 000,000.00 with fixed annual interest rate of6% on 7 March 2012. The interests are paid yearly, and the principal will be repaid in a lump sum upon maturity. Nanshan Group has provided a full-amount irrevocable guarantee with joint-liability for the medium term note.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 25. Bonds payable- continued
Note 2: Pursuant to Approval for Publicly Issuing Corporate Bond of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (Zheng Jian Xu Ke[2012] No. 1142) issued by China Securities Regulatory Commission, the Company issued the seven-year corporate bond at the par value of RMB570,000,000.00 on 17 December 2012. In the first five interest-bearing years, the annual interest rate is fixed at5.78%. The interests will be paid yearly, and the principal will be repaid in a lump sum upon maturity. As specified in the prospectus of the corporate bond, the Company has the right to decide whether to raise the interest rate of the corporate bond for the remaining two years by 1 to 100 basis points at the end of the fifth year. After the Company publicly announces the decision on changing interest rate, the bond holders are entitled to sell all or partial of the bonds held by them to the Company at par value. Nanshan Group has provided a full-amount irrevocable guarantee with joint-liability for the corporate bond. 26. Long-term payable
Unit: RMB
||||||
|-|-|-|-|-|
|Entity||Closing balance||Opening balance|
|Nanshan Group|212,011,691.49||191,254,998.76||

 The long-term payable is the fund borrowed by the Group from the Company's parent company Nanshan Group. Pursuant to the agreement of long-term borrowings with Nanshan Group, the borrowings should be used forthe construction and subsequent operation of the logistics parks of the Company's subsidiaries. The interests willaccrueon the actual amounts borrowed atthe interest rate based on market rates of the same period.
27. Other non-current liabilities
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Medium and long-term borrowings (note)|700,000,000.00||700,000,000.00||
|Rental received in advance|20,415,611.82||21,764,962.98||
|Total|720,415,611.82||721,764,962.98||
|Less: Rental received in advanceto be amortised within one year|1,349,351.16||1,349,351.16||
|Non-current liabilities due after one year|719,066,260.66||720,415,611.82||

 Note: See note (VII) 5 (4) for details.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 28. Share capital
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item||Opening balance||Changes for the period||||||Closing balance||
||||New issueof shares||Bonus issue||Capitalisation|Others|Sub-total|||
||||||||of surplus|||||
||Item||||||reserve||||Closing balance|
||2013:|||||||||||
||I. Restricted tradable|||||||||||
||shares|||||||||||
||1. State-owned shares|-|-||-|-||-|-|-||
||2. State-owned legal|119,420,000.00|-||-|-||-|-|119,420,000.00||
||person shares|||||||||||
||3. Other domestic-owned|-|-||-|-||-|-|-||
||shares|||||||||||
||4. Other foreign-owned|-|-||-|-||-|-|-||
||shares|||||||||||
||Total restricted tradable|119,420,000.00|-||-|-||-|-|119,420,000.00||
||shares|||||||||||
||II. Tradable shares|||||||||||
||1. Ordinary shares|-|-||-|-||-|-|-||
||denominated in RMB|||||||||||
||2. Foreign-owned shares|111,180,000.00|-||-|-||-|-|111,180,000.00||
||listed domestically|||||||||||
||3. Foreign-owned shares|-|-||-|-||-|-|-||
||listed overseas|||||||||||
||4. Others|-|-||-|-||-|-|-||
||Total tradable shares|111,180,000.00|-||-|-||-|-|111,180,000.00||
||III. Total shares|230,600,000.00|-||-|-||-|-|230,600,000.00||
||2012:|||||||||||
||I. Restricted tradable|||||||||||
||shares|||||||||||
||1. State-owned shares|-|-||-|-||-|-|-||
||2. State-owned legal|119,420,000.00|-||-|-||-|-|119,420,000.00||
||person shares|||||||||||
||3. Other domestic-owned|-|-||-|-||-|-|-||
||shares|||||||||||
||4. Other foreign-owned|-|-||-|-||-|-|-||
||shares|||||||||||
||Total restricted tradable|119,420,000.00|-||-|-||-|-|119,420,000.00||
||shares|||||||||||
||II. Tradable shares|||||||||||
||1. Ordinary shares|-|-||-|-||-|-|-||
||denominated in RMB|||||||||||
||2. Foreign-owned shares|111,180,000.00|-||-|-||-|-|111,180,000.00||
||listed domestically|||||||||||
||3. Foreign-owned shares|-|-||-|-||-|-|-||
||listed overseas|||||||||||
||4. Others|-|-||-|-||-|-|-||
||Total tradable shares|111,180,000.00|-||-|-||-|-|111,180,000.00||
||III. Total shares|230,600,000.00|-||-|-||-|-|230,600,000.00||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 29. Capital reserve
Unit: RMB
||||||
|-|-|-|-|-|
||Opening balance|Increase in the|Decrease in the||
|Item||period|period|Closing balance|
|2013:|||||
|Capital premium|124,868,225.67|-|-|124,868,225.67|
|Other capital reserve|109,272,960.42|-|-|109,272,960.42|
|Total|234,141,186.09|-|-|234,141,186.09|
|2012:|||||
|Capital premium|124,868,225.67|-|-|124,868,225.67|
|Other capital reserve|109,272,960.42|-|-|109,272,960.42|
|Total|234,141,186.09|-|-|234,141,186.09|

 30. Special reserve
Unit: RMB
||||||
|-|-|-|-|-|
||Opening balance|Increase in the|Decrease in the||
|Item||period|period|Closing balance|
|2013:|||||
|Production safety fee|1,469,510.03|1,713,819.06|560,598.28|2,622,730.81|
|2012:|||||
|Production safety fee|-|1,882,448.51|412,938.48|1,469,510.03|

 31. Surplus reserves
Unit: RMB
||||||
|-|-|-|-|-|
|||Increase in theperiod|Decrease in the||
|Item|Opening balance||period|Closing balance|
|2013:|||||
|Statutory surplus reserve|185,957,063.66|15,023,319.70|-|200,980,383.36|
|Discretionary surplus reserve|77,869,026.91|5,835,337.45|-|83,704,364.36|
|Total|263,826,090.57|20,858,657.15|-|284,684,747.72|
|2012:|||||
|Statutory surplus reserve|174,286,388.74|11,670,674.92|-|185,957,063.66|
|Discretionary surplus reserve|68,704,167.51|9,164,859.40|-|77,869,026.91|
|Total|242,990,556.25|20,835,534.32|-|263,826,090.57|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 32. Unappropriated profits
Unit: RMB
||||
|-|-|-|
|||Proportion of|
|Item|Amount|appropriation|
|2013:|||
|Before adjustment: Unappropriated profits at the end of prior year|557,522,716.65||
|Adjustment: Total unappropriated profits at the beginning of the year|-||
|After adjustment: Unappropriated profits at the beginning of the year|557,522,716.65||
|Add: Net profit attributable to owners of the Company for the period|207,564,394.21||
|Less: Appropriation to statutory surplus reserve (note 1)|15,023,319.70|Note 1|
|Appropriation to discretionary surplus reserve|5,835,337.45|Note 2|
|Declaration of dividends on ordinary shares|23,290,570.05|Note 3|
|Unappropriated profits at the end of the year|720,937,883.66||
|2012:|||
|Before adjustment: Unappropriated profits at the end of prior year|452,610,050.78||
|Adjustment: Total unappropriated profits at the beginning of the year|-||
|After adjustment: Unappropriated profits at the beginning of the year|452,610,050.78||
|Add: Net profit attributable to owners of the Company for the period|162,182,965.40||
|Less: Appropriation to statutory surplus reserve (note 1)|11,670,674.92||
|Appropriation to discretionary surplus reserve|9,164,859.40||
|Declaration of dividends on ordinary shares|36,434,765.21||
|Unappropriated profits at the end of the year|557,522,716.65||

Note 1: Appropriation to statutory surplus reserve
According to the Articles of Association, the Company is required to transfer10% of its net profit to the statutory surplus reserve.
Note 2: Appropriation to discretionary surplus reserve
According to the resolution of 2012shareholders' meetingon 20 May 2013, the Company appropriated thediscretionary surplus reserve based on5% of the Company's net profit, the total amount of which is RMB5,835,337.45.
Note 3: Cash dividends approved at shareholders' meeting during the year
On 20May 2013, it was approvedat the 2012shareholders' meetingthat on the basis of 230,600,000 issued shares, dividends in cash of RMB1.01(tax included) for every 10 shares were declared to all the shareholders, and RMB23,290,600.00was accrued in total. RMB23, 290,570.05was actually distributed by the Company in July 2013.
Note 4: Surplus reserve appropriated by subsidiaries
As at 31 December 2013, the balance of the Group's unappropriated profits includes
appropriation to surplus reserve by subsidiaries amounting to RMB56,518,506.74(31
December 2012: RMB39,452,022.31).
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 33. Operating income and operating costs
(1)Operating income
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|||Amount recognised in||Amount recognised in|
||||the current period||the prior period|
||Principal operating income|676,995,055.04||577,556,818.09||
||Other operating income|14,837,571.43||1,035,088.28||
||Operating costs|252,860,477.85||230,078,993.62||

 (2)Principal operating activities (classified by industries)
Unit: RMB
||||||
|-|-|-|-|-|
||Amount recognised in the current period||Amount recognised in the prior period||
|Name of industry|Operating income|Operating costs|Operating income|Operating costs|
|Stack (storage)|440,603,925.00|157,981,199.56|367,861,802.24|148,752,641.14|
|Loading and unloading|102,070,501.85|40,518,647.70|94,289,929.39|39,014,276.13|
|Port management|80,866,836.85|15,098,162.53|72,720,364.43|14,786,749.77|
|Office leasing and others|53,453,791.34|26,418,443.20|42,684,722.03|26,256,670.51|
|Total|676,995,055.04|240,016,452.99|577,556,818.09|228,810,337.55|

 (3)Operating income from the Group's top five customers
Unit: RMB
||||||
|-|-|-|-|-|
|Customer||Operating income||Proportion to total|
|||||operating income of the|
||Customer|||Group (%)|
||Shenzhen Weisheng Offshore Oil Technology Co., Ltd.|112,761,024.56|16.30||
||CNOOC Offshore Oil Engineering Co., Ltd.|29,353,658.33|4.24||
||LF Logistics (China) Co., Ltd.|27,511,178.18|3.98||
||Volkswagen Automobile Sales Co.,Ltd.|24,339,416.89|3.52||
||Guangzhou Fengshen Logistics Co., Ltd.|22,869,561.81|3.31||
||Total|216,834,839.77|31.35||

 34. Business taxes and levies
Unit: RMB
|||||
|-|-|-|-|
||Amount incurred in the|Amount incurred in the||
|Item|current period|prior period|Basis of calculation|
|Property tax|14,312,383.19|13,030,290.36|See note (IV)|
|Urban land use tax|5,875,448.70|5,237,926.00|See note (IV)|
|Business tax|5,158,779.04|19,146,421.23|See note (IV)|
|City construction and maintenance tax|2,265,496.77|1,656,066.95|See note (IV)|
|Education surcharges|1,825,677.42|1,308,776.01|See note (IV)|
|Others|230,887.81|203,180.59||
|Total|29,668,672.93|40,582,661.14||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 35. Selling expenses
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|||Amount incurred in the||Amount incurred|
||Item||current period||in the prior period|
||Agency brokerage|1,064,389.00||3,234,697.34||
||Others|44,567.18||58,393.00||
||Total|1,108,956.18||3,293,090.34||

 36. Administrative expenses
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|||Amount incurred in the||Amount incurred|
||Item||current period||in the prior period|
||Payroll|52,089,279.82||33,357,127.34||
||Asset amortisation|8,363,611.39||2,779,090.90||
||Taxes|4,919,162.53||3,501,106.49||
||Asset depreciation|4,522,609.76||4,664,223.38||
||Business entertainment|2,947,915.00||2,385,928.18||
||Travelling expense|2,153,823.08||1,775,838.93||
||Vehicle expense|1,970,012.51||2,130,991.61||
||Board of directors fee|831,845.88||1,201,726.00||
||Others|11,062,135.53||14,008,636.95||
||Total|88,860,395.50||65,804,669.78||

 37. Financial expenses
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|||Amount incurred in the||Amount incurred in the|
||Item||current period||prior period|
||Interest expenses|151,355,854.04||139,968,987.39||
||Less: Capitalised interest expenses|7,660,665.17||13,251,797.89||
||Less: Interest income|4,459,326.16||10,819,339.82||
||Exchange differences|(106,354.23)||162,543.58||
||Less: Capitalised exchange differences|-||-||
||Others|2,931,941.73||3,011,116.08||
||Total|142,061,450.21||119,071,509.34||

 38. Impairment losses on assets
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|||Amount incurred in the||Amount incurred in the|
||Item||current period||prior period|
||Bad debt losses|68,650.31||358,320.98||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 39. Investment income
(1)Details of investment income
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Amount recognised in||Amount recognised|
||Item|the current period||in the prior period|
||Income from long-term equity investments under equity method|62,622,013.46|58,893,228.92||
||Income from bank financing products|32,845,899.16|18,217,455.73||
||Total|95,467,912.62|77,110,684.65||

 (2)Income from long-term equity investments under equity method
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Investee|||Amount recognised in||Amount recognised in|Reasons for increase or decrease|
||||the current period||the prior period||
|CSE||60,744,502.58||58,131,919.13||Changes of net profits gained by theinvestee in the current period|
|CDFC||1,105,139.15||-||Changes of net profits gained by theinvestee in the current period|
|CPEC||772,371.73||761,309.79||Changes of net profits gained by theinvestee in the current period|
||Total|62,622,013.46||58,893,228.92|||

There are no significant restrictions on remittance of investment income stated above.
40. Non-operating income
(1)Details of non-operating income are as follows:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item|||Amount||Amount|Amount included innon-recurring profit orloss for the period|
||||recognised in the||recognised in the||
||Item||current period||prior period||
||Total gains on disposal of non-current assets|355,637.36||123,757.50||355,637.36|
||Including: Gains on disposal of fixed assets|355,637.36||123,757.50||355,637.36|
||Government grants|4,694,608.73||4,305,837.99||4,694,608.73|
||Penalty gains|187,706.80||594,883.24||187,706.80|
||Others|331,312.16||126,656.77||331,312.16|
||Total|5,569,265.05||5,151,135.50||5,569,265.05|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 40. Non-operating income- continued
(2)Details of government grants:
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Amount recognisedin the current period|Amount recognisedin the prior period|Related to assets/income|
||Item||||
||Financial incentive (note 1)|3,280,034.92|2,916,665.99|Related to income|
||Financial support fund(note 2)|1,298,704.06|-|Related to income|
||Tax refunds (note 3)|-|1,389,172.00|Related to income|
||Others|115,869.75|-|Related to income|
||Total|4,694,608.73|4,305,837.99||

Note 1: Amount recognised in the current period mainly are bank loan subsidies for key logisticsenterprise granted tothe Company, in accordance with Interim Management ProvisionsonAccredited Shenzhen KeyLogisticsEnterprises (Shen Jiao (2006) No. 697) and Interim Management Provisionson Special Funds for Shenzhen Modern Logistics Development(Shen Cai Qi (2009) No. 96); amount recognised in the prior periodmainly are subsidies for developing modern logistics enterprise granted to Kunshan Baowan, subsidiary of the Company, in accordance with Kun Cai Zi (2012) No. 226 - Notice on Granting Subsidies for Developing Kunshan Modern Logistics Enterprises in 2011 issued by the Bureau of Finance in Kunshan.
Note 2: Mainly are financial support fund granted to the Company in accordance
withImplementation Measures on Financial Supports During Shenzhen Business Tax to VAT Tax Reform PilotPeriod (Shen Cai Fad (2012) No. 46).
Note 3: Tax refunds are urban land use tax refunded to Langfang Baowan, subsidiary of the Company, in accordance with Lang Kai Di Shui Han (2012) No. 18 issued by the Local Tax Bureau of Langfang Economy and Technology Development District.
41. Non-operating expenses
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|||Amount incurred||Amount incurred||Amount included in|
||||in the current||in the prior||non-recurring profit or|
||Item||period||period||loss for the period|
||Total losses on disposal of non-current assets|132,490.93||96,956.57||132,490.93||
||Including: Losses on disposal of fixed assets|132,490.93||96,956.57||132,490.93||
||Penalty losses|5,130.95||23,647.22||5,130.95||
||Others|248,699.58||24,084.04||248,699.58||
||Total|386,321.46||144,687.83||386,321.46||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 42. Income tax expense
Unit: RMB
||||
|-|-|-|
||Amount incurred in|Amount incurred in|
|Item|the current period|the prior period|
|Current tax expense calculated according to tax laws and relevant|52,832,124.20|26,409,801.34|
|requirements|||
|Adjustments to deferred tax|750,194.17|(364,606.95)|
|Total|53,582,318.37|26,045,194.39|

 Reconciliation of income tax expenses to the accounting profit is as follows:
Unit: RMB
||||
|-|-|-|
||Amount for the|Amount for the prior|
||current period|period|
|Accounting profit|277,854,879.76|201,519,793.49|
|Income tax expenses calculated at 25% (prior year: 25%)|69,463,719.94|50,379,948.37|
|Effect of expenses that are not deductible for tax purposes|665,633.09|668,758.92|
|Effect of tax-free income|(15,655,503.37)|(14,723,307.23)|
|Effect of using previously unrecognised deductible losses and|(1,495,208.04)|(1,835,063.07)|
|deductible temporary differences|||
|Others (note)|603,676.75|(8,445,142.60)|
|Income tax expense|53,582,318.37|26,045,194.39|

 43. Calculation process of basic earnings per share and diluted earnings per share For the purpose of calculating basic earnings per share, net profit for the current period attributable to ordinary shareholders is as follows:
Unit: RMB
||||
|-|-|-|
||Amount for the|Amount for the prior|
||current period|period|
|Net profit for the current period attributable to ordinary shareholders|207,564,394.21|162,182,965.40|
|Including: Net profit from continuing operations|207,564,394.21|162,182,965.40|
|Net profit from discontinued operations|-|-|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 43. Calculation process of basic earnings per share and diluted earnings per share- continued For the purpose of calculating basic earnings per share, the denominator is the weighted average number of outstanding ordinary shares, and its calculation process is as follows:
||||
|-|-|-|
||Number for the|Number for the|
||current period|prior period|
|Number of ordinary shares outstanding at the beginning of year|230,600,000.00|230,600,000.00|
|Add: Weighted average number of ordinary shares issued during the period|-|-|
|Less: Weighted average number of ordinary shares repurchased during the|-|-|
|period|||
|Number of ordinary shares outstanding at the end of the year|230,600,000.00|230,600,000.00|

 Earnings per share
Unit: RMB
||||
|-|-|-|
||Amount for the|Amount for the prior|
||current period|period|
|Calculated based on net profit attributable to shareholders of the|||
|Company:|||
|Basic earnings per share|0.90|0.70|
|Diluted earnings per share|Not applicable|Not applicable|
|Calculated based on net profit from continuing operations|||
|attributable to shareholders of the Company:|||
|Basic earnings per share|0.90|0.70|
|Diluted earnings per share|Not applicable|Not applicable|

 44. Notes to items in the cash flow statement
(1)Other cash receipts relating to operating activities
Unit: RMB
||||
|-|-|-|
||Amount for the|Amount for the prior|
|Item|current period|period|
|Receipts of storage service deposits|24,448,498.00|13,815,484.35|
|Receipts of supplies purchasing and decoration fees|14,834,601.43|1,035,088.28|
|Interest income|7,450,610.38|8,571,572.28|
|Government grants|4,694,608.73|2,916,665.99|
|Others|522,263.16|2,908,763.79|
|Total|51,950,581.70|29,247,574.69|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 43. Notes to items in the cash flow statement- continued
(2) Other cash payments relating to operating activities
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
|Item|period|period|
|Payments for storage service deposits|16,904,284.90|1,988,137.94|
|Payments for administrative expense and selling expense|13,205,808.64|19,742,866.70|
|Payment for supplies procurement and decoration fees|12,844,024.86|1,268,656.07|
|Payment for accrued expenses|2,478,612.86|1,514,549.63|
|Payment for bank commissions|1,731,941.73|1,811,116.08|
|Others|4,275,681.43|4,870,053.49|
|Total|51,440,354.42|31,195,379.91|

 (3) Other cash receipts relating to investing activities
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
|Item|period|period|
|Receipts of matured financing products|3,833,000,000.00|2,034,620,000.00|
|Investment income from bank financing products|28,048,536.15|17,383,702.31|
|Refund of land deposit|10,000,000.00|800,000.00|
|Receipts of construction retentions|2,666,503.86|-|
|Others|833,753.42|-|
|Total|3,874,548,793.43|2,052,803,702.31|

 (4) Other cash payments relating to investing activities
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
|Item|period|period|
|Purchase of financing products|4,010,610,000.00|2,035,000,000.00|

 (5) Other cash receipts relating to financing activities
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
|Item|period|period|
|Receipts of loans from Nanshan Group|20,756,692.73|46,420,072.41|

 (6) Other cash payments relating to financing activities
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
|Item|period|period|
|Payments for loan interests to Nanshan Group|58,793,950.16|52,302,146.08|
|Payments for commission of medium term note|1,200,000.00|1,200,000.00|
|Payments for commission of corporate bond|-|5,130,000.00|
|Others|1,647.30|-|
|Total|59,995,597.46|58,632,146.08|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 44. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
||||||
|-|-|-|-|-|
|Supplementary information||Current period||Prior period|
|1. Reconciliation of net profit to cash flows from operating activities:|||||
|Net profit|224,272,561.39||175,474,599.10||
|Add: Provision for impairment losses of assets|68,650.31||358,320.98||
|Depreciation of fixed assets|40,231,382.98||37,618,339.00||
|Amortisation of intangible assets|36,009,198.34||29,519,254.36||
|Depreciation of investment properties|35,460,059.65||32,045,467.74||
|Losses (gains) on disposal of fixed assets, intangible assets|(223,146.43)||(26,800.93)||
|and other long-term assets|||||
|Financial expenses|143,695,188.87||126,717,189.50||
|Losses (gains) arising from investments|(95,467,912.62)||(77,110,684.65)||
|Decrease (increase) in deferred tax assets|750,194.17||(410,831.30)||
|Decrease (increase) in inventories|73,365.26||59,792.49||
|Decrease (increase) in receivables from operating activities|11,653,839.82||(14,149,558.99)||
|Increase (decrease) in payables from operating activities|38,937,668.41||17,584,033.99||
|Net cash flows from operating activities|435,461,050.15||327,679,121.29||
|2. Net changes in cash and cash equivalents:|||||
|Closing balance of cash|233,327,680.86||893,349,140.32||
|Less: Opening balance of cash|893,349,140.32||402,106,820.70||
|Add: Closing balance of cash equivalents|-||-||
|Less: Opening balance of cash equivalents|-||-||
|Net increase (decrease) in cash and cash equivalents|(660,021,459.46)||491,242,319.62||

 (2) Composition of cash and cash equivalents
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|I. Cash|233,327,680.86||893,354,140.32||
|Including: Cash on hand|17,305.49||20,110.78||
|Bank deposits|233,310,375.37||893,329,029.54||
|Other monetary funds|-||-||
|II. Cash equivalents|-||-||
|Including: Investments in debt securities due within three|-||-||
|months|||||
|III. Closing balance of cash and cash equivalents|233,327,680.86||893,354,140.32||

 Note: The closing balance of cash and cash equivalents excludes the refundable deposits of credit cards. See note (VI) 1 for details.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Entity name||Relationship|Type of enterprise|Registeredlocation|Legalrepresentative|Business nature|Registeredcapital (RMB)||Shareholding||Voting power|Organizationcode|
|||with the|||||||percentage||percentage||
|||Company|||||||(%)||(%)||
|NanshanGroup|Parentcompany||Sino-foreign jointventure|Shenzhen,Guangdong|Fu Yuning|Port and shipping, offshore oilservice, real estate developmentand new construction material|900,000,000.00|51.79||51.79||61883297-6|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in note (V).
3. Associates and joint ventures of the Company
Details of the associates and joint ventures of the Company are set out innote (VI) 8.
4. Other related parties of the Company
||||||
|-|-|-|-|-|
|Name of other related party|||Relationship between other related|Organisation code|
||||parties and the Company||
||Chiwan Wharf Company|Note 1||61883296-8|
||Nanshan Real Estate Company|Controlled by the same party||61883297-6|
||Shenzhen Chixiao Project Engineering Co., Ltd.|Controlled by the same party||61883136-7|
||("Chixiao Project Company")||||
||Shenzhen Chixiao Construction Technology|Controlled by the same party||61881595-7|
||Co., Ltd. ("Chixiao Construction Company")||||
||China Merchants Logistics Group Guangzhou|Note 2||75198798-5|
||Logistics Co., Ltd. ("CM Logistics Guangzhou||||
||Company")||||
||Yahgee Company|Controlled by the same party||72855133-1|
||Shenzhen Haiqin Project Management Co., Ltd.|Note 2||61888300-1|
||("Haiqin Project Company")||||
||Shenzhen Chiwan Shipping Co., Ltd. ("Chiwan|Note 1||61881638-6|
||Shipping Company")||||
||Shenzhen Chiwan Oriental Logistics Co., Ltd.|Controlled by the same party||69018024-7|
||("Oriental Logistics Company")||||
||China Merchants Bank Co., Ltd. ("China|Note 3||10001686-X|
||Merchants Bank")||||
||Directors, general manager, vice-general|Key management personnel||Not applicable|
||managers, etc. of the Company||||

Note 1: Chiwan Shipping Company is the subsidiary of Chiwan Wharf Company. Prior to 28 December 2012, CM Group was the ultimate controller of the Company, Chiwan Wharf Company and Chiwan Shipping Company. Since 28 December 2012, CM Group no longer has control over the Company, and Chiwan Wharf Company and Chiwan ShippingCompany are no longer the Company's related parties.
Note 2: CM Logistics Guangzhou Company and Haiqin Project Company are the subsidiaries of CM Group. Since 28 December 2012, CM Group no longer has control over the Company, and CM Logistics Guangzhou Company and Haiqin ProjectCompany are no longer the Company's related parties.
Note 3: China Merchants Bank is an associate of CM Group. Since 28 December 2012, CM
Group no longer has control over the Company, and China Merchants Bank is no longer
the Company's related party.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions
(1) Sales and purchase of goods, provision and receipt of services
Receipt of service
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||Amount for the current period||Amount for the prior period||
||||||Proportion ofthe amount ofrelated partytransactions tothat of similartransactions(%)||Proportion of|
||||||||the amount of|
||||Pricing and||||related party|
||||decision-making||||transactions to|
||||procedures of||||that of similar|
||Transaction|Details of related|related party||||transactions|
|Related party|type|party transaction|transactions|Amount||Amount|(%)|
|Chixiao Project|Receipt ofservice|Constructionservice|By reference tomarket price|21,648,923.28|8.79|2,321,505.61|1.61|
|Company||||||||
||Receipt ofservice|Power supplyservice|By reference tomarket price|3,128,022.00|100.00|3,293,298.53|100.00|
|Nanshan Group||||||||
|Chixiao|Receipt ofservice|Constructionservice|By reference tomarket price|-|-|2,660,396.78|1.85|
|Construction||||||||
|Company||||||||
|Haiqin Project|Receipt ofservice|Constructionservice|By reference tomarket price|-|-|120,000.00|0.08|
|Company||||||||
|Total||||24,776,945.28||8,395,200.92||

Provision of service
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||Amount for the current period||Amount for the prior period||
||||||Proportion of|Amount|Proportion of|
||||||the amount of||the amount of|
||||Pricing and||related party||related party|
||||decision-making||transactions to||transactions to|
||||procedures of||that of similar||that of similar|
||Transaction|Details of related|related party||transactions||transactions|
|Related party|type|party transaction|transactions|Amount|(%)||(%)|
||Provision ofservice|Loading andunloading service|By reference tomarket price|7,415,958.81|7.27|11,769,372.14|12.48|
|CSE||||||||
||Provision ofservice|Stack (storage) service|By reference tomarket price|3,593,909.00|0.82|5,456,241.92|1.48|
|CSE||||||||
||Provision ofservice|Stack (storage) service|By reference tomarket price|882,175.00|0.20|1,119,608.00|0.30|
|CPEC||||||||
||Provision ofservice|Loading andunloading service|By reference tomarket price|117,607.23|0.12|350,695.18|0.06|
|CPEC||||||||
|Nanshan|Provision ofservice|Maintenance service|By reference tomarket price|31,058.22|0.21|27,249.59|7.08|
|Group||||||||
|CM Logistics|Provision ofservice|Stack (storage) service|By reference tomarket price|-|-|5,096,641.30|1.39|
|Guangzhou||||||||
|Company||||||||
|Chiwan|Provision ofservice|Stack (storage) service|By reference tomarket price|-|-|117,660.27|0.03|
|Shipping||||||||
|Company||||||||
|Chiwan|Provision ofservice|Maintenance service|By reference tomarket price|-|-|11,633.66|3.02|
|Wharf||||||||
|Company||||||||
|Total||||12,040,708.26||23,949,102.06||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions- continued
(2) Leases with related parties
Leases where a group entity is the lessor:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Expiration dateof leases||Lease income|
|||Type of leased|Commencement||Basis of determining the|recognised in the|
|Name of lessor|Name of lessee|assets|date of leases||lease income|current year|
||Nanshan Group|Office building|01/06/2006|31/12/2014|By reference to marketprice|6,651,072.60|
|The Company|||||||
||CSE|Office building|16/10/2002|15/10/2022|By reference to marketprice|785,836.56|
|The Company|||||||
||CDFC|Office building|01/07/2013|31/12/2014|By reference to marketprice|560,228.76|
|The Company|||||||
||CPEC|Office building|01/11/2009|31/12/2014|By reference to marketprice|437,832.00|
|The Company|||||||
||Oriental LogisticsCompany|Office building|01/01/2013|31/12/2014|By reference to marketprice|90,805.20|
|Shanghai Baowan|||||||
||Nanshan Real EstateCompany|Office building|01/01/2013|31/12/2013|By reference to marketprice|79,683.84|
|The Company|||||||
|Total||||||8,605,458.96|

 Leases where a group entity is the lessee:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||||Basis of determining thelease payment|Lease payment|
|||Type of|Commencement|Expiration date||recognised in the|
|Name of lessor|Name of lessee|leased assets|date of leases|of leases||current year|
||The Company|Land|01/09/2006|14/07/2034|By reference to marketprice|28,708,824.65|
|Nanshan Group (note 1)|||||||
||Shenzhen Baowan|Land|12/11/1988|12/11/2018|By reference to marketprice|1,987,417.60|
|Nanshan Group (note 2)|||||||
||Guangzhou Baowan|Building|20/03/2012|20/03/2015|By reference to marketprice|19,680.00|
|Yahgee Company|||||||
|Total||||||30,715,922.25|

 Note 1: The leased assets include two pieces of lands which the Company has leased from Nanshan Group: one is to the east of Chiwan 1st road, with the lease term from 1 September 2006 to 31 August 2026; the other is the Chiwan east coast venue (phase I), with the lease term from 1 January 2012 to 14 July 2034.
Note 2: The leased land is located to the southeast of the intersection of Chiwan 2nd and 6th roads, which Shenzhen Baowan has leased from Nanshan Group, the Company's parent company.
(3)Guarantees with related parties
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Whether execution of|
||Guaranteed|Guaranteed|Inception date|Expiration date|guarantee has been|
|Guarantor|party|amount|of guarantee|of guarantee|completed|
|Nanshan Group|The Company|570,000,000.00|17/12/2012|17/12/2019|No|
|Nanshan Group|The Company|400,000,000.00|09/03/2012|09/03/2017|No|
|Nanshan Group(note 1)|The Company|200,000,000.00|31/03/2012|30/03/2029|No|
|Nanshan Group(note 2)|The Company|120,000,000.00|29/11/2012|28/11/2029|No|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions- continued
(3)Guarantees with related parties - continued
Note 1: Pursuant to the long-term borrowings contract, the Company can apply for loans within the scope of guaranteed amount and guaranteed term. As at 31 December 2013, the closing balance of the aforesaid guaranteed loan is RMB126,019,651.23.
Note 2: Pursuant to the long-term borrowings contract, the Company can apply for loans within the scope of guaranteed amount and guaranteed term. As at 31 December 2013, the closing balance of the aforesaid guaranteed loan is RMB39,028,655.39.
(4) Borrowings/loans with related parties
During the year
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Amount for the current|Inception|Maturity|Amount at the end of the||
|Related party|period|date|date|current period|Remarks|
|Borrow from:||||||
|Nanshan Group|-|11/11/2011|11/11/2016|650,000,000.00|Note 1|
|Nanshan Group|-|11/11/2011|11/11/2016|50,000,000.00|Note 2|
|Nanshan Group|20,752,467.73|||214,291,691.49|Note 3|
|Total|20,752,467.73|||914,291,691.49||

Note 1: The loan is used for the construction of logistics parks of the Company's subsidiaries and the construction project of working ship wharf of the Company. The annual interest rate is6.8150%.
Note 2: The loan is to satisfy the development needs of the Group. The annual interest rate is6.8150%.
Note 3: There is no fixed term for repayment for the above mentioned borrowings and loans. The interest rates are based on the market interest rates.
In the prior year
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Amount for the current||Maturity|Amount at the end of the||
|Related party|period|Inception date|date|current period|Remarks|
|Borrow from:||||||
|Nanshan Group|-|11/11/2011|11/11/2016|650,000,000.00||
|Nanshan Group|-|11/11/2011|11/11/2016|50,000,000.00||
|Nanshan Group|54,278,764.38|||193,539,223.76||
|Total|54,278,764.38|||893,539,223.76||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions- continued
(5) Interest incomes and expenses with related parties
Interest/investment income gained from deposits/purchase of bank financing products
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount for the current period||Amount for the prior period||
|||||Proportion of the|Amount|Proportion of the|
|||||amount of related||amount of related|
|||||party transactions||party transactions|
|||||to that of similar||to that of similar|
||Type of related|Pricing principle of related||transactions||transactions|
|Related party|party transaction|party transaction|Amount|(%)||(%)|
|Interest income:|||||||
||Interest income|Interest rate set by thePeople's Bank of China|-|-|5,929,672.25|54.81|
|China Merchants Bank|||||||
|Investment income:|||||||
||Investment income|Negotiated interest rate(referred to market rate)|-|-|4,669,757.10-|25.63|
|China Merchants Bank|||||||

Interest expense for borrowings
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount for the current period||Amount for the prior period||
|||||Proportion of the||Proportion of the|
|||||amount of related||amount of related|
|||||party transactions||party transactions|
|||||to that of similar||to that of similar|
||Type of related|Pricing principle of related||transactions||transactions|
|Related party|party transaction|party transaction|Amount|(%)|Amount|(%)|
||Interest expense|Negotiated interest rate(referred to market rate)|58,926,472.19|38.93|56,761,460.75|40.55|
|Nanshan Group|||||||
||Interest expense|Interest rate set by thePeople's Bank of China|-|-|20,463,089.07|14.62|
|China Merchants Bank|||||||
|Total|||58,926,472.19|38.93|77,224,549.82|55.17|

 (6) Compensation for key management personnel
Unit: RMB
||||
|-|-|-|
||Amount incurred in the|Amount incurred in the|
|Item|current period|prior period|
|Compensation for key management personnel|5,735,022.93|4,974,521.30|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VII) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
6. Amounts due from / to related parties
(1) Amounts due from related parties
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Related party|Closing balance||Opening balance||
||||Carrying amount|Bad debtprovision|Carrying amount|Bad debt provision|
|Accounts receivable||CSE|3,854,041.82|38,540.42|1,021,439.48|10,214.39|
|||CPEC|366,834.89|3,668.35|419,023.92|4,190.24|
|||Nanshan Real EstateCompany|6,390.32|63.90|-|-|
|||Total|4,227,267.03|42,272.67|1,440,463.40|14,404.63|
||Dividends receivable|CSE|48,000,000.00|-|-|-|
|Other receivable||CPEC|146,888.94|1,468.89|146,888.94|-|
|||CSE|22,971.48|229.71|1,061.40|-|
|||Yahgee Company|20,000.00|200.00|20,000.00|-|
|||Total|189,860.42|1,898.60|167,950.34|-|

 (2) Amounts due to related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Related party|Closing balance|Opening balance|
||Nanshan Group|6,132,919.30|6,340,144.88|
||CSE|16,554.40|-|
|Accounts payable||||
||Chixiao Construction Company|9,740.00|9,740.00|
||Total|6,159,213.70|6,349,884.88|
|Interest payable|Nanshan Group|6,758,208.33|6,758,208.33|
||Nanshan Group|8,201,702.79|8,102,049.35|
||Chixiao Construction Company|6,306,878.46|7,426,878.46|
||Chixiao Project Company|1,751,292.65|5,710,476.33|
|Other payables|CPEC|202,913.64|194,213.64|
||CSE|164,425.00|630,440.08|
||Oriental Logistics Company|5,000.00|5,000.00|
||Total|16,632,212.54|22,069,057.86|
|Non-current liabilities due within one year|CSE|785,836.56|785,836.56|
|Long-term payables|Nanshan Group|212,011,691.49|191,254,998.76|
||Nanshan Group|700,000,000.00|700,000,000.00|
|Other non-current liabilities|CSE|6,236,708.70|7,022,545.26|
||Total|706,236,708.70|707,022,545.26|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(VIII) COMMITMENTS
1.Capital commitments
Unit: RMB
||||||
|-|-|-|-|-|
|||Closing balance||Opening balance|
|Capital commitments that have been entered into but have not been|||||
|recognised in the financial statements:|||||
|- Commitment for acquisition and construction of long-term assets|299,525,033.35||246,579,594.31||

 2.Operating lease commitments
At the balance sheet date, the Group had the following commitments in respect of non-cancellable operating leases:
Unit: RMB
||||||
|-|-|-|-|-|
|||Closing balance||Opening balance|
|Minimum lease payments under non-cancellable operating leases:|||||
|1st year subsequent to the balance sheet date|37,218,452.33||30,165,767.07||
|2nd year subsequent to the balance sheet date|38,543,346.95||35,261,978.32||
|3rd year subsequent to the balance sheet date|38,163,746.76||35,677,428.24||
|Subsequent periods|530,332,104.58||541,036,138.52||
|Total|644,257,650.62||642,141,312.15||

 (IX) EVENTS AFTER THE BALANCE SHEET DATE
Description of other events after the balance sheet date
(1) Pursuant to the approvals by the Company's board of directors on 28 October 2013 and 24 December 2013, Baowan Holdings, subsidiary of the Company, established Baowan Logistics Feidong Co., Ltd ("Feidong Baowan") in Hefei Province and Xi'an Baowan Logistics Co., Ltd ("Xi'an Baowan") in Shaanxi Province with registered capital both of
RMB100,000,000.00.Baowan Holdings holds100% equity interests of Feidong Baowan and Xi'an Baowan. Feidong Baowan and Xi'an Baowan obtained business licenses on 3 January 2014 and 14 January 2014 respectively.
(2) Pursuant to the approval by the Company's board of directors on 28 October 2013, Baowan Holdings, subsidiary of the Company, established Blogis (HongKong) Limitedin Hong Kong Special Administrative Region with registered capital of USD 40,000.00. Baowan Holdings holds100% equity interests of Blogis (Hong Kong) Limited.Blogis (Hong Kong) Limited completed registration procedures in Hong Kong Companies Registry and obtained Certificate of Incorporation and Business Registration Certificate on 21 January 2014.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(X) OTHER SIGNIFICANT EVENTS
1. Borrowing costs
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Amount of borrowing costs during the year||Capitalisation rate|
|Construction in progress|7,660,665.17||5.0506%||
|Sub-total of borrowing costs capitalised|7,660,665.17||||
|during the year|||||
|Borrowing costs recognised in profit or|143,695,188.87||||
|loss during the year|||||
|Total|151,355,854.04||||

2. Segment reporting
Based on the Group's internal organisation structure, management requirements and internal reporting system, the operations of the Group are classified into four reporting segments, which are stack (storage), loading and unloading, port management, office leasing and others. The reporting segments are determined based on the specific circumstances of the Group. The Group's management periodically evaluates the operating results of these reporting segments to make decisions about resources to be allocated to the segments and assess their performance. Major products and services delivered or provided by each of the reporting segments are: stack (storage), loading and unloading, port management, office leasing and others.
Segment information is disclosed in accordance with the accounting policies and measurement criteria adopted by each segment when reporting to management. The measurement criteria are consistent with the accounting and measurement criteria in the preparation of the financial statements.
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(X) OTHER SIGNIFICANT EVENTS- continued
2. Segment reporting- continued
Segment information
Unit: RMB
|||||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Stack (storage)||||Loading and unloading||||Port management||||Office leasing and others||||Unallocated items||||Inter-segment eliminations||||Total||||
||||Current year||Prior year||Current year||Prior year||Current year||Prior year||Current year||Prior year||Current year||Prior year||Current year||Prior year||Current year||Prior year|
|Operating income:||||||||||||||||||||||||||||||
|External revenue||440,603,925.00||367,861,802.24||102,070,501.85||94,289,929.39||80,866,836.85||72,720,364.43||68,291,362.77||43,719,810.31||-||-||-||-||691,832,626.47||578,591,906.37||
|Ir|nter-segment|-||-||-||-||-||-||-||-||-||-||-||-||-||-||
||evenue|||||||||||||||||||||||||||||
|To|otal segment|440,603,925.00||367,861,802.24||102,070,501.85||94,289,929.39||80,866,836.85||72,720,364.43||68,291,362.77||43,719,810.31||-||-||-||-||691,832,626.47||578,591,906.37||
||perating income|||||||||||||||||||||||||||||
|Reconciling items:||||||||||||||||||||||||||||||
|Total operating income in the financial statements||||||||||||||||||||||||||691,832,626.47||578,591,906.37||
|Operating costs||157,981,199.56||148,752,641.14||40,518,647.70||39,014,276.13||15,098,162.53||14,786,749.77||39,262,468.06||27,525,326.58||-||-||-||-||252,860,477.85||230,078,993.62||
|Sp|egment operating|282,622,725.44||219,109,161.10||61,551,854.15||55,275,653.26||65,768,674.32||57,933,614.66||29,028,894.71||16,194,483.73||-||-||-||-||438,972,148.62||348,512,912.75||
||rofit (loss)|||||||||||||||||||||||||||||
|R|econciling items:|||||||||||||||||||||||||||||
|Business taxes andlevies||18,894,936.78||29,513,888.63||4,377,209.49||3,700,239.13||3,467,907.76||2,268,200.03||2,928,618.90||5,100,333.35||-||-||-||-||29,668,672.93||40,582,661.14||
|Selling expenses||1,108,956.18||3,293,090.34||-||-||-||-||-||-||-||-||-||-||1,108,956.18||3,293,090.34||
|Ga|eneral and|42,954,662.09||37,231,972.83||9,950,896.19||9,543,258.01||7,883,741.96||7,360,162.48||6,657,753.64||4,311,304.34||21,413,341.56||7,357,972.12||-||-||88,860,395.44||65,804,669.78||
||dministrative|||||||||||||||||||||||||||||
|expensesFinancial expenses||-||-||-||-||-||-||-||-||142,061,450.21||119,071,509.34||-||-||142,061,450.21||119,071,509.34||
|Ias|mpairment loss of|-||-||-||-||-||-||-||-||68,650.31||358,320.98||-||-||68,650.31||358,320.98||
||sets|||||||||||||||||||||||||||||
|Investment income||-||-||-||-||-||-||-||-||95,467,912.62||77,110,684.65||-||-||95,467,912.62||77,110,684.65||
|Operating profit||219,664,170.39||149,070,209.30||47,223,748.47||42,032,156.12||54,417,024.60||48,305,252.15||19,442,522.17||6,782,846.04||(68,075,529.46)||(49,677,117.79)||-||-||272,671,936.17||196,513,345.82||
|N|on-operating income|||||||||||||||||||||||||5,569,265.05||5,151,135.50||
|Non-operating expenses||||||||||||||||||||||||||386,321.46||144,687.83||
|Total profit||219,664,170.39||149,070,209.30||47,223,748.47||42,032,156.12||54,417,024.60||48,305,252.15||19,442,522.17||6,782,846.04||(62,892,585.87)||(44,670,670.12)||-||-||277,854,879.76||201,519,793.49||

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(X) OTHER SIGNIFICANT EVENTS-continued
2. Segment reporting- continued
Segment information - continued
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Stack (storage)||Loading and unloading||Port management||Office leasing and others||Unallocated items||Inter-segment eliminations||Total||
|Total segment assets||Current year4,641,455,231.68|Prior year3,712,348,637.42|Current year1,075,241,589.85|Prior year951,545,087.76|Current year851,875,758.86|Prior year733,871,644.63|Current year719,401,905.03|Prior year430,761,141.01|Current year3,284,220,682.17|Prior year2,827,403,560.36|Current year(6,071,130,542.63)|Prior year(4,176,843,551.41)|Current year4,501,064,624.96|Prior year4,479,086,519.77|
|R|econciling items:|||||||||||||||
|Tfi|otal assets in the|4,641,455,231.68|3,712,348,637.42|1,075,241,589.85|951,545,087.76|851,875,758.86|733,871,644.63|719,401,905.03|430,761,141.01|3,284,220,682.17|2,827,403,560.36|(6,071,130,542.63)|(4,176,843,551.41)|4,501,064,624.96|4,479,086,519.77|
||nancial statements|||||||||||||||
|Tli|otal segment|2,100,179,418.65|2,349,084,897.90|486,528,501.16|602,114,837.16|385,459,267.99|464,376,319.62|325,517,106.01|272,575,285.83|2,391,766,451.27|1,167,447,708.99|(2,939,775,255.99)|(1,925,766,453.48)|2,749,675,489.09|2,929,832,596.02|
||abilities|||||||||||||||
|R|econciling items:|||||||||||||||
|Tfi|otal liabilities in the|2,100,179,418.65|2,349,084,897.90|486,528,501.16|602,114,837.16|385,459,267.99|464,376,319.62|325,517,106.01|272,575,285.83|2,391,766,451.27|1,167,447,708.99|(2,939,775,255.99)|(1,925,766,453.48)|2,749,675,489.09|2,929,832,596.02|
||nancial statements|||||||||||||||
|Su|pplementary information:|||||||||||||||
|Depreciation||48,205,223.98|44,152,010.67|11,167,243.69|11,415,101.13|8,847,410.93|8,803,806.72|7,471,564.03|5,292,888.22|-|-|-|-|75,691,442.63|69,663,806.74|
|A|mortisation|22,932,994.94|18,767,988.27|5,312,667.84|4,810,589.95|4,209,038.22|3,710,129.56|3,554,497.34|2,230,546.58|-|-|-|-|36,009,198.34|29,519,254.36|
|In|terest income|-|-|-|-|-|-|-|-|4,459,326.16|10,819,339.82|-|-|4,459,326.16|10,819,339.82|
|In|terest expense|-|-|-|-|-|-|-|-|143,695,188.87|126,717,189.50|-|-|143,695,188.87|126,717,189.50|
|Imrecu|pairment losses|-|-|-|-|-|-|-|-|68,650.31|358,320.98|-|-|68,650.31|358,320.98|
||cognised in the|||||||||||||||
||rrent period|||||||||||||||
|Infrineq|vestment income|-|-|-|-|-|-|-|-|62,622,013.46|58,893,228.92|-|-|62,622,013.46|58,893,228.92|
||om long-term equity|||||||||||||||
||vestment under|||||||||||||||
||uity method|||||||||||||||
|Lineq|ong-term equity|-|-|-|-|-|-|-|-|476,253,695.39|484,031,681.93|-|-|476,253,695.39|484,031,681.93|
||vestments under|||||||||||||||
||uity method|||||||||||||||
|Noteq|on-current assets|-|-|-|-|-|-|-|-|3,125,056,891.61|2,665,647,453.04|-|-|3,125,056,891.61|2,665,647,453.04|
||her than long-term|||||||||||||||
||uity investments|||||||||||||||
|Capital expenditure||-|-|-|-|-|-|-|-|744,505,157.35|161,600,977.30|-|-|744,505,157.35|161,600,977.30|
|InEfrpr|cluding.:|-|-|-|-|-|-|-|-|370,358,484.62|130,805,916.52|-|-|370,358,484.62|130,805,916.52|
||xpenditure arising|||||||||||||||
||om construction in|||||||||||||||
||ogress|||||||||||||||
|Efrfi|xpenditure arising|-|-|-|-|-|-|-|-|7,272,623.79|11,581,174.80|-|-|7,272,623.79|11,581,174.80|
||om purchase of|||||||||||||||
||xed assets|||||||||||||||
|Efrin|xpenditure arising|-|-|-|-|-|-|-|-|366,874,048.94|19,213,885.98|-|-|366,874,048.94|19,213,885.98|
||om purchase of|||||||||||||||
||tangible assets|||||||||||||||

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(X) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting- continued
(2) External revenue by geographical area of source and non-current assets by geographical location All external revenuesof the Group were derived from the People's Republic of China (the "PRC") and all assets of the Group were located in the PRC.
(3) Degree of reliance on major customers
See note (VI) 33 (3) for details.
3. Financial instruments and risk management
The Group's major financial instruments include cash and bank balances, accounts receivable, interest receivable, dividends receivable, other receivables, other current assets, accounts payable, interest payable, other payables, non-current liabilities due within one year, long-term borrowings, bonds payable, long-term payables and other non-current liabilities. Details of these financial instruments are disclosed in respective notes to the financial statements. The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure the risks are monitored at a certain level.
3.1. Risk management objectives and policies
The Group's risk management objectives are to achieve a proper balance between risks and yield, minimise the adverse impacts of risks on the Group's operation performance, and maximise the benefits of the shareholders and other stakeholders. Based on these risk management objectives, the Group's basic risk management strategy is to identify and analyse the Group's exposure to various risks, establish an appropriate maximum tolerance to risk, implement risk management, and monitors regularly and effectively these exposures to ensure the risks are monitored at a certain level.
3.1.1 Market risk
3.1.1.1Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The Company's principal activities are denominated and settled in RMB. As at 31 December 2013, the balance of the Group's assets and liabilities are both denominated in RMB except that the assets set out below are denominated in foreign currencies.
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Cash and cash equivalents|492,960.39||2,110,576.31||

The Group closely monitors the effects of changes in the foreign exchange rates on the Group's
currency risk exposures.
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(X) OTHER SIGNIFICANT EVENTS - continued
3. Financial instruments and risk management - continued
3.1 Risk management objectives and policies - continued
3.1.1 Market risk- continued
3.1.1.2Interest rate risk - risk of changes in fair value
The Group's fair value interest rate risk of financial instruments relates primarily to fixed-rate bank borrowings (see note (VI) 23 and 24 for details) and bonds payable (see note (VI) 25 for details). The Group keeps monitoring the interest rates and determines the proportion between the borrowing contracts adopting fixed interest rates and the floated interest rates based on the market, which to some extent has hedged the impact incurred by interest rates growth.
3.1.2 Credit risk
As at 31 December 2013, the Group's maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties is arising from:
•
The carrying amount of the respective recognised financial assets as stated in the consolidated balance sheet. For financial instruments measured at fair value, the carrying amount reflects the exposure to risks but not the maximum exposure to risks. The maximum exposure to risks would vary according to the future changes in fair value.
In order to minimise the credit risk, the Group has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the management of the Group considers that the Group's credit risk is significantly reduced.
The credit risk on liquid funds is limited because they are deposited in banks with high credit ratings.
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(X) OTHER SIGNIFICANT EVENTS - continued
3. Financial instruments and risk management - continued
3.1 Risk management objectives and policies - continued
3.1.3Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group's operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilisation of bank borrowings and ensures compliance with loan covenants.
The following is the maturity analysis for financial assets and financial liabilities held by the Group which is based on undiscounted remaining contractual obligations:
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item||Less than 1 year||1-5 years||Over 5 years||Total|
|Cash and bank balances|233,332,680.86||-||-||233,332,680.86||
|Accounts receivable|55,359,989.14||-||-||55,359,989.14||
|Interest receivable|4,797,363.01||-||-||4,797,363.01||
|Dividends receivable|48,000,000.00||-||-||48,000,000.00||
|Other receivables|39,105,216.81||22,552,880.00||-||61,658,096.81||
|Other current assets|547,610,000.00||-||-||547,610,000.00||
|Accounts payable|(10,629,691.02)||-||-||(10,629,691.02)||
|Interest payable|(28,339,479.77)||-||-||(28,339,479.77)||
|Other payables|(235,814,254.97)||-||-||(235,814,254.97)||
|Non-current liabilities due|(321,952,628.80)||||||(321,952,628.80)||
|within one year|||||||||
|Long-term borrowings|(12,050,700.84)||(68,277,801.86)||(255,346,273.39)||(335,674,776.09)||
|Bonds payable|(56,946,000.00)||(584,317,333.33)||(602,122,350.00)||(1,243,385,683.33)||
|Long-term payables (note)|-||(212,011,691.49)||-||(212,011,691.49)||
|Other non-current liabilities|(47,705,000.00)||(789,579,388.89)||-||(837,284,388.89)||

 Note: No fixed repayment term is set for long-term payables. The Group presumes that the balances will be repaid by the end of the fifth year subsequent to the balance sheet date. 3.2 Fair value
Fair values of the financial assets and financial liabilities are determined as follows:
•
The fair value of financial assets and financial liabilities with standard terms and conditions and traded on active markets are determined with reference to quoted market bid prices and ask prices respectively;
•
The fair value of other financial assets and financial liabilities (excluding derivative
instruments) are determined in accordance with generally accepted pricing models based on
discounted cash flow analysis or using prices from observable current market transactions;
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(X) OTHER SIGNIFICANT EVENTS - continued
3. Financial instruments and risk management - continued
3.2Fair value- continued
•
The fair value of derivative instruments is determined with reference to quoted market prices in active markets. Where such quoted prices are not available, the fair value of a non-option-based derivative is estimated using discounted cash flow analysis and on the basis of the applicable yield curve. For an option-based derivative, the fair value is estimated using option pricing model (for example, the binomial model).
The management considers that the carrying amounts of financial assets and financial liabilities in the financial statements approximate their fair values.
3.3 Sensitivity analysis
The Group adopts sensitivity analysis technique to analyse how the profit and loss for the period or shareholders' equity would have been affected by reasonably possible changes in the relevant risk variables. As it is unlikely that risk variables will change in an isolated manner, and the interdependence among risk variables will have significant effect on the amount ultimately influenced by the changes in a single risk variable, the following are based on the assumption that the change in each risk variable is on a stand-alone basis.
3.3.1Currency risk
Given that the Company holds a relatively small amount of assets and liabilities in foreign currency, the management considers that, where all other variables are held constant, the
reasonably possible changes in exchange rates will not have a material pre-tax effect on the profit or loss for the period and shareholders' equity.
3.3.2Interest rate risk
3.3.2.1 The sensitivity analysis on interest rate risk is based on the following assumptions:•
Changes in the market interest rate may influence the interest income or expense of the variable rate financial instruments;
•
For fixed rate financial instruments measured at fair value, changes in the market interest rate only influence their interest income or expense;
•
For derivative financial instruments designated as hedging instruments, changes in the market interest rate influence their fair values, and all the hedges of interest rate risk are expected to be highly effective;
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
•
Changes in the fair value of derivative financial instruments and other financial assets and liabilities are calculated at the market interest rate as at the balance sheet date, using the method of discounted cash flow analysis.
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(X) OTHER SIGNIFICANT EVENTS - continued
3. Financial instruments and risk management - continued
3.3Sensitivity analysis- continued
3.3.2Interest rate risk- continued
3.3.2.2 On the basis of the above assumptions, where all other variables are held constant, the reasonably possible changes in the interest rate may have the following pre-tax effect on the profit or loss for the period and shareholders' equity:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item||Change ininterest rate||Current year||||Prior year|||
||||Effect on profit|||Effect on|Effect on profit|||Effect on|
||Item|||||shareholders' equity||||shareholders' equity|
||External borrowings|1% increase|(12,475,553.39)||(12,475,553.39)||(11,650,188.50)||(11,650,188.50)||
||External borrowings|1% decrease|12,475,553.39||12,475,553.39||11,650,188.50||11,650,188.50||
||External deposits|1% increase|-||-||5,880,000.00||5,880,000.00||
||External deposits|1% decrease|-||-||(5,880,000.00)||(5,880,000.00)||

 (XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1.Cash and bank balances
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||Closing balance|||||Opening balance||||
|||Foreign currency|||Exchange|Amount in RMB|Foreign currency|||Exchange|Amount in RMB|
||Item||||rate|||||rate||
||Cash:|||||||||||
||RMB|||||261.30|||||2,900.00|
||Hong Kong Dollar|46.12||0.79||36.26|45.13||0.81||36.56|
||Euro|391.75||8.42||3,298.10|390.24||8.32||3,246.80|
||Sub-total|||||3,595.66|||||6,183.36|
||Bank balances:|||||||||||
||RMB|||||58,953,113.36|||||851,515,971.14|
||United States Dollar|62,766.43||6.10||382,680.65|64,469.07||6.29||405,510.45|
||Hong Kong Dollar|108,534.54||0.79||85,329.85|2,073,475.12||0.81||1,679,514.85|
||Sub-total|||||59,421,123.86|||||853,600,996.44|
||Other monetary funds:|||||||||||
||RMB|||||5,000.00|||||5,000.00|
||Sub-total|||||5,000.00|||||5,000.00|
||Total|||||59,429,719.52|||||853,612,179.80|

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS- continued 2. Accounts receivable
(1) Disclosure of accounts receivable by categories:
Unit: RMB
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Category||Closing balance||||||||Opening balance|||||||
|||Carrying amount||||Bad debt provision||||Carrying amount||||Bad debt provision|||
|||Amount|P|roporti|Amount|||Proporti|Amount|||Proporti|Amount|||Proportion|
||Category|Amount||on(%)||||on(%)||||on(%)||||(%)|
|aai|Accounts receivables that|-|-||-||-||-||-||-||-||
||re individually significant||||||||||||||||
||nd provided for bad debt||||||||||||||||
||ndividually||||||||||||||||
|A|ccounts receivable for which bad debt provision has been assessed by portfolios||||||||||||||||
||Portfolio 1|-|-||-||-||-||-||-||-||
||Portfolio 2|40,523,415.65|99.60||405,234.19||1.00||31,253,353.22||98.78||312,533.53||1.00||
||Subtotal of portfolios|40,523,415.65|99.60||405,234.19||1.00||31,253,353.22||98.78||312,533.53||1.00||
|asa|Accounts receivable that|164,138.37|0.40||164,138.37||100.00||386,523.37||1.22||164,138.38||42.47||
||re not individually||||||||||||||||
||ignificant but for which||||||||||||||||
||bad debt provision has been||||||||||||||||
||ssessed individually||||||||||||||||
|Total||40,687,554.02|100.00||569,372.56||1.40||31,639,876.59||100.00||476,671.91||1.51||

 Aging analysis of accounts receivable is as follows:
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance|||||||Opening balance||||||
|||Amount|||Proportion||Bad debt|Carrying amount|Amount|||Proporti||Bad debt|Carrying amount|
||Aging||Amount||(%)||provision|||||on (%)||provision||
||Within 1 year|40,440,745.65||99.40||404,407.49||40,036,338.16|31,230,124.22||98.71||312,301.24||30,917,822.98|
|yey|More than 1|82,670.00||0.20||826.70||81,843.30|3,450.00||0.01||34.50||3,415.50|
||ear but not|||||||||||||||
||xceeding 2|||||||||||||||
||ears|||||||||||||||
|yey|More than 2|-||-||-||-|386,523.37||1.22||164,138.38||222,384.99|
||ears but not|||||||||||||||
||xceeding 3|||||||||||||||
||ears|||||||||||||||
|y|More than 3|164,138.37||0.40||164,138.37||-|19,779.00||0.06||197.79||19,581.21|
||ears|||||||||||||||
||Total|40,687,554.02||100.00||569,372.56||40,118,181.46|31,639,876.59||100.00||476,671.91||31,163,204.68|

 (1) No accounts receivable are due from shareholders holding at least5% of the Company's shares with voting power in the reporting period. See note (XI) 9(7) for details of accounts receivable due to related parties.
(2) Top five entities with the largest balances of accounts receivable
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Name of entity||Relationshipwith theCompany|Amount|Age||Proportion of the|
|||||||amount to the total|
|||||||accounts|
||Name of entity|||||receivable(%)|
||Shenzhen Weisheng Offshore|Customer|17,426,334.72|Within 1 year|42.83||
||Oil Technology Co., Ltd.||||||
||CSE|Associate|3,854,041.82|Within 1 year|9.47||
||CACT Operators Group|Customer|2,452,531.86|Within 1 year|6.03||
||Husky Oil China Ltd.|Customer|2,201,344.95|Within 1 year|5.41||
||Baker Hughes Asia Pacific Ltd.|Customer|1,610,374.74|Within 1 year|3.96||
||Total||27,544,628.09||67.70||

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 3. Other receivables
(1)Disclosure of other receivables by categories:
Unit: RMB
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Category|||Closing balance||||||||Opening balance|||||||
||||Carrying amount||||Bad debt provision||||Carrying amount||||Bad debt provision|||
|||Amount|||Proportion(|Amount|||Proportion|Amount|||Proportion|Amount|||Proportion|
||Category||||%)||||(%)||||(%)||||(%)|
||Other receivables|-||-||-||-||-||-||-||-||
||that are individually|||||||||||||||||
||significant and for|||||||||||||||||
||which bad debt|||||||||||||||||
||provision has been|||||||||||||||||
||assessed|||||||||||||||||
||individually|||||||||||||||||
|O|ther receivables for which bad debt provision has been assessed by portfolios|||||||||||||||||
||Portfolio 1|1,084,317,318.00||99.88||-||-||674,359,006.21||99.78||-||-||
||Portfolio 2|1,264,199.34||0.12||12,642.00||1.00||1,473,359.00||0.22||14,733.59||1.00||
||Subtotal of|1,085,581,517.34||100.00||12,642.00||0.00||675,832,365.21||100.00||14,733.59||0.00||
||portfolios|||||||||||||||||
||Other receivables|-||-||-||-||-||-||-||-||
||that are not|||||||||||||||||
||individually|||||||||||||||||
||significant but for|||||||||||||||||
||which bad debt|||||||||||||||||
||provision has been|||||||||||||||||
||assessed|||||||||||||||||
||individually|||||||||||||||||
||Total|1,085,581,517.34||100.00||12,642.00||0.00||675,832,365.21||100.00||14,733.59||0.00||

 Aging analysis of other receivables is as follows:
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance|||||||Opening balance||||||
|||Amount|||Proportion||Bad debt|Carrying amount|Amount|||Proportion||Bad debt|Carrying amount|
||Aging||||(%)||provision|||||(%)||provision||
||Within 1 year|450,022,806.33||41.45||10,555.23||450,012,251.10|675,121,899.66||99.89||7,628.94||675,114,270.72|
||More than 1|635,554,793.16||58.55||2,076.16||635,552,717.00|174,881.16||0.03||1,748.81||173,132.35|
||year but not|||||||||||||||
||exceeding 2|||||||||||||||
||years|||||||||||||||
||More than 2|1,061.40||0.00||10.61||1,050.79|535,584.39||0.08||5,355.84||530,228.55|
||years but not|||||||||||||||
||exceeding 3|||||||||||||||
||years|||||||||||||||
||More than 3|2,856.45||0.00||-||2,856.45|-||-||-||-|
||years|||||||||||||||
||Total|1,085,581,517.34||100.00||12,642.00||1,085,568,875.34|675,832,365.21||100.00||14,733.59||675,817,631.62|

 (2)No other receivables are due from shareholders holding at least5% of the Company's shares with voting power in the reporting period.See note(XI) 9(7) for details of accounts receivable due to related parties.
(3) Top five entities with the largest balances of accounts receivable
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Name of entity||Relationship with theCompany|Amount|Age||Proportion of the amount|
|||||||to the total other|
||Name of entity|||||receivables(%)|
||Baowan Holdings|Subsidiary|1,083,299,193.15|Within 2 years|99.79||
||CNOOC Sales Shenzhen Co., Ltd.|Supplier|314,100.00|Within 1 year|0.03||
||Ping An Insurance (Group) Company of China Ltd.|Supplier|180,419.00|Within 1 year|0.02||
||Shenzhen Shekou Sub-branch||||||
||CPEC|Associate|146,888.94|1 - 2 years|0.01||
||AIG Insurance Company China Limited|Supplier|98,339.00|Within 1 year|0.01||
||Shenzhen Branch||||||
||Total||1,084,038,940.09||99.86||

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
4. Long-term equity investments
(1)Details of long-term equity investments are as follows:
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee||Accountingmethod|Investment cost|Opening balance|Changes [increase/(decrease)]|Closing balance|Proportion ofownershipinterest in theinvestee (%)|Proportion ofvoting powerin theinvestee (%)|t|Explanation of|Provisionforimpairmentlosses|Provision forimpairmentlosses for theperiod|Cash dividendsfor the period|
|||||||||||he inconsistency||||
|||||||||||between the||||
|||||||||||proportion of||||
|||||||||||ownership||||
|||||||||||interest and the||||
|||||||||||proportion of||||
|||||||||||voting power||||
|Baowan Holdings||Costmethod|830,531,987.58|830,531,987.58|-|830,531,987.58|77.36|77.36|Not applicable||-|-|-|
|Shenzhen Baowan||Costmethod|41,834,700.07|41,273,772.13|-|41,273,772.13|100.00|100.00|Not applicable||-|-|2,160,354.98|
|CDFC||Equitymethod|100,000,000.00|100,000,000.00|1,105,139.15|101,105,139.15|20.00|20.00|Not applicable||-|-|-|
|CSE||Equitymethod|79,488,000.00|379,088,864.51|(9,655,497.42)|369,433,367.09|32.00|32.00|Not applicable||-|-|70,400,000.00|
|CPEC||Equitymethod|3,312,000.00|4,942,817.42|772,371.73|5,715,189.15|20.00|20.00|Not applicable||-|-|-|
|T|otal||1,055,166,687.65|1,355,837,441.64|(7,777,986.54)|1,348,059,455.10|||||-|-|72,560,354.98|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 5.Long-term borrowings
(1)Categories of long-term borrowings
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Guaranteed loans (note)|165,048,306.62|343,763,851.56|
|Credit loans|-|489,300,000.00|
|Total|165,048,306.62|833,063,851.56|

 Note1: The annual interest rate of the guaranteedloans is6.5500%(31December 2012:5.1840% to6.8775%). Nanshan Group has provided a full-amount irrevocable guarantee with joint-liability for the said loans. See note (XI) 9(3) for details.
(2) Top five long-term borrowings
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Closing balance||Opening balance||
||||||Amount in|Amount in|Amount in|Amount in|
||Inception date|||Interest rate|foreign|domestic|foreign|domestic|
|Lender|of borrowing|Maturity date|Currency|(%)|currency|currency|currency|currency|
|China Development|Note 1|Note 1|RMB|Note 1||126,019,651.23||141,475,408.33|
|Bank Corporation|||||||||
|Shenzhen Branch|||||||||
|China Development|Note 2|Note 2|RMB|Note 2||39,028,655.39||1,288,443.23|
|Bank Corporation|||||||||
|Shenzhen Branch|||||||||
|China Merchant Bank|13/09/2012|13/09/2015|RMB|5.8425||-||200,000,000.00|
|Shenzhen Chiwan|||||||||
|Sub-Branch (note 4)|||||||||
|China Merchant Bank|21/08/2009|21/08/2014|RMB|5.1840||-||199,500,000.00|
|Shenzhen Chiwan|||||||||
|Sub-Branch|||||||||
|Bank of China Limited|10/11/2009|10/11/2014|RMB|5.1840||-||159,800,000.00|
|Shenzhen Branch|||||||||
|Total||||||165,048,306.62||702,063,851.56|

 Note 1: See note 1 in note (VI) 24(2) for details.
Note 2: See note 2 in note (VI) 24(2) for details.
6. Operating income and operating costs
(1)Operating income
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|||Amount recognised in||Amount recognised in|
||Item||the current period||the prior period|
||Principal operating income|335,477,056.78||305,349,110.18||
||Other operating income|14,834,601.43||1,026,248.28||
||Operating costs|131,928,558.14||121,446,694.04||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 6. Operating income and operating costs- continued
(2)Principal operating activities (classified by industries)
Unit: RMB
||||||
|-|-|-|-|-|
||Amount recognised in the current period||Amount recognised in the prior period||
|Name of industry|Operating income|Operating costs|Operating income|Operating costs|
|Stack (storage)|138,857,664.86|64,975,809.40|127,480,331.74|64,480,960.56|
|Loading and unloading|92,257,789.37|33,050,211.58|84,609,673.29|31,249,658.66|
|Port management|80,866,836.85|15,098,162.53|72,720,364.43|14,786,749.77|
|Office leasing and others|23,494,765.70|5,960,349.77|20,538,740.72|9.660.668.98|
|Total|335,477,056.78|119,084,533.28|305,349,110.18|120,178,037.97|

 (3)Operating income from the Company's top five customers
Unit: RMB
||||||
|-|-|-|-|-|
|Customer||Operating income||Proportion to total operating|
||Customer|||income of the Company (%)|
||Shenzhen Weisheng Offshore Oil Technology Co., Ltd.|112,761,024.56|32.19||
||CNOOC Offshore Oil Engineering Co., Ltd.|29,353,658.33|8.38||
||Cameron (Shenzhen) Systems Co., Ltd.|22,467,823.86|6.41||
||CACT Operators Group|21,306,796.96|6.08||
||Husky Oil China Ltd.|13,707,446.36|3.91||
||Total|199,596,750.07|56.97||

 7. Investment income
(1)Details of investment income
Unit: RMB
|||||
|-|-|-|-|
|Item||Amount recognisedin the currentperiod|Amount recognisedin the prior period|
||Item|||
||Income from long-term equity investments under equity method|62,622,013.46|58,893,228.92|
||Income from bank financing products|32,845,899.16|18,217,455.73|
||Income from long-term equity investments under cost method|2,160,354.98|532,985.37|
||Total|97,628,267.60|77,643,670.02|

 (2)Income from long-term equity investments under cost method
Unit: RMB
|||||
|-|-|-|-|
|Investee||Amountrecognised in thecurrent period|Amountrecognised in theprior period|
||Investee|||
||Shenzhen Baowan|2,160,354.98|532,985.37|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 7. Investment income - continued
(3)Income from long-term equity investments under equity method
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Investee|||Amount recognised||Amount recognised in||Reasons for increase or decrease in the|
||Investee||in the current period||the prior period||current period compared to the prior period|
||CSE|60,744,502.58||58,131,919.13||Changes in net profits gained by the investee in the current period||
||CDFC|1,105,139.15||-||Changes in net profits gained by the investee in the current period||
||CPEC|772,371.73||761,309.79||Changes in net profits gained by the investee in the current period||
||Total|62,622,013.46||58,893,228.92||||

There are no significant restrictions on remittance of investment income stated above.
8. Supplementary information to the cash flow statement
(1)Supplementary information to the cash flow statement
Unit: RMB
||||||
|-|-|-|-|-|
|Supplementary information||Current period||Prior period|
|1. Reconciliation of net profit to cash flow from operating activities:|||||
|Net profit|150,233,196.97||116,706,749.09||
|Add: Provision for impairment losses of assets|109,482.06||184,673.81||
|Depreciation of fixed assets|9,525,137.43||9,632,788.36||
|Amortisation of intangible assets|16,869,065.65||16,872,684.52||
|Depreciation of investment properties|5,324,508.55||5,370,595.70||
|Losses (gains) on disposal of fixed assets, intangible assets and|(223,284.16)||6,135.21||
|other long-term assets|||||
|Financial expenses|91,976,345.99||84,057,637.95||
|Losses (gains) arising from investments|(97,628,267.60)||(77,643,670.02)||
|Decrease (increase) in deferred tax assets|(23,460.26)||(42,228.08)||
|Decrease (increase) in inventories|36,407.72||18,027.25||
|Decrease (increase) in receivables from operating activities|2,526,959.89||(1,488,784.87)||
|Increase (decrease) in payables from operating activities|19,063,756.61||(2,313,836.69)||
|Net cash flow from operating activities|197,789,848.85||151,360,772.23||
|2. Net changes in cash and cash equivalents:|||||
|Closing balance of cash (note)|59,424,719.52||853,607,179.80||
|Less: Opening balance of cash|853,607,179.80||324,220,901.87||
|Add: Closing balance of cash equivalents|-||-||
|Less: Opening balance of cash equivalents|-||-||
|Net increase (decrease) in cash and cash equivalents|(794,182,460.28)||529,386,277.93||

 Note: The closing balance of cash and cash equivalents excludesthe refundable deposits of credit cards of the Company. See note (XI) 1 for details.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 9. Related party transactions
(1) Sales and purchase of goods, provision and receipt of services
Receipt of service
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||Amount for the current period||Amount for the prior period||
||||||Proportion of the||Proportion of the|
||||Pricing and||amount of related||amount of related|
||||decision-making||party transactions||party transactions|
||||procedures of||to that of similar||to that of similar|
|Related|Transaction|Details of related|related party||transactions||transactions|
|party|type|party transaction|transactions|Amount|(%)|Amount|(%)|
|Chixiao|Receipt ofservice|Constructionservice|By reference tomarket price|20,714,789.98|62.40|1,302,465.61|29.92|
|Project||||||||
|Company||||||||
|Nanshan|Receipt ofservice|Power supplyservice|By reference tomarket price|2,815,330.70|100.00|3,022,557.21|100.00|
|Group||||||||
|Haiqin|Receipt ofservice|Constructionservice|By reference tomarket price|-|-|120,000.00|2.76|
|Project||||||||
|Company||||||||
|Total||||23,530,120.68||4,445,022.82||

Provision of service
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||Amount for the current period||Amount for the prior period||
||||||Proportion of the||Proportion of the|
||||Pricing and||amount of related||amount of related|
||||decision-making||party transactions||party transactions|
||||procedures of||to that of similar||to that of similar|
|Related|Transaction|Details of related|related party||transactions||transactions|
|party|type|party transaction|transactions|Amount|(%)|Amount|(%)|
||Provision ofservice|Loading andunloading service|By reference tomarket price|7,415,958.81|8.04|11,769,372.14|13.91|
|CSE||||||||
||Provision ofservice|Stack (storage)|By reference tomarket price|3,593,909.00|2.59|5,456,241.92|4.28|
|CSE||||||||
||Provision ofservice|Stack (storage)|By reference tomarket price|882,175.00|0.64|1,119,608.00|0.88|
|CPEC||||||||
||Provision ofservice|Loading andunloading service|By reference tomarket price|117,607.23|0.13|350,695.18|0.41|
|CPEC||||||||
|Nanshan|Provision ofservice|Maintenanceservice|By reference tomarket price|31,058.22|0.21|27,249.59|7.08|
|Group||||||||
|Chiwan|Provision ofservice|Maintenanceservice|By reference tomarket price|-|-|11,633.66|3.02|
|Wharf||||||||
|Company||||||||
|Total||||12,040,708.26||12,158,950.57||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 9. Related party transactions- continued
(2) Leases with related parties
Leases where the Company is the lessor:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Type of|||||
|||leased|Commencement|Expiration date|Basis of determining the|Lease income recognised in|
|Name of lessor|Name of lessee|assets|date of leases|of leases|lease income|the current year|
||Nanshan Group|Officebuilding|01/06/2006|31/12/2014|By reference to marketprice|6,651,072.60|
|The Company|||||||
||CSE|Officebuilding|16/10/2002|15/10/2022|By reference to marketprice|785,836.56|
|The Company|||||||
||CDFC|Officebuilding|01/07/2013|31/12/2014|By reference to marketprice|560,228.76|
|The Company|||||||
||CPEC|Officebuilding|01/11/2009|31/12/2014|By reference to marketprice|437,832.00|
|The Company|||||||
||Nanshan Real EstateCompany|Officebuilding|01/01/2013|31/12/2013|By reference to marketprice|79,683.84|
|The Company|||||||
|Total||||||8,514,653.76|

 Leases where the Company is the lessee:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Name of lessee|Type of leased|Commencementdate of leases|Expiration date|Basis of determining the|Lease payment recognised in|
|Name of lessor||assets||of leases|lease payment|the current year|
||The Company|Land|01/09/2006|14/07/2034|By reference to marketprice|28,708,824.65|
|Nanshan Group|||||||

(3)Guarantees with related parties
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||Inception date ofguarantee||Whether execution of|
||Guaranteed|||Expiration date of|guarantee has been|
|Guarantor|party|Guaranteed amount||guarantee|completed|
|Nanshan Group|The Company|570,000,000.00|17/12/2012|17/12/2019|No|
|Nanshan Group|The Company|400,000,000.00|09/03/2012|09/03/2017|No|
|Baowan Holdings(note)|The Company|400,000,000.00|07/09/2012|07/09/2015|No|
|Nanshan Group|The Company|200,000,000.00|31/03/2012|30/03/2029|No|
|Nanshan Group|The Company|120,000,000.00|29/11/2012|28/11/2029|No|

 Note: Pursuant to the long-term borrowings contract, the Company can apply for loans within the scope of guaranteed amount and guaranteed term. As at 31 December 2013, the closing balance of the aforesaid guaranteed loan is RMB150,100,000.00.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 9. Related party transactions- continued
(4) Borrowings/loans with related parties
During the year:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Related party|Amount for the current period|Inception date|Maturity date|Amount at the end of the current period|Remarks|
|Borrowed from:||||||
|Nanshan Group|-|11/11/2011|11/11/2016|650,000,000.00||
|Nanshan Group|-|11/11/2011|11/11/2016|50,000,000.00||
|Nanshan Group|(4,255.00)|||2,280,000.00|Note|
|Shenzhen Baowan|2,138,802.94|||42,007,879.27||
|Total|2,134,577.94|||744,287,879.27||
|Lent to:||||||
|Baowan Holdings|362,794,837.15|||989,424,952.62|Note|

 Note: There is no fixed term for repayment for the above mentioned borrowings and loans. The interest rates are based on the market interest rates.
In the prior year:
|||||||
|-|-|-|-|-|-|
|Related party|Amount for the current period|Inception date|Maturity date|Amount at the end of the current period|Remarks|
|Borrowed from:||||||
|Nanshan Group|-|11/11/2011|11/11/2016|650,000,000.00||
|Nanshan Group|-|11/11/2011|11/11/2016|50,000,000.00||
|Nanshan Group|2,284,255.00|||2,284,255.00|Note|
|Baowan Holdings|(99,457,056.00)|||-||
|Nanjing Baowan|(54,611,657.58)|||-||
|Shenzhen Baowan|(3,533,865.70)|||39,869,076.33||
|Total|(155,318,324.28)|||742,153,331.33||
|Lent to:||||||
|Baowan Holdings|626,630,115.47|||626,630,115.47|Note|
|Tianjin Baowan|(164,613,831.11)|||-||
|Kunshan Baowan|(109,760,338.88)|||-||
|Mingjiang International|(87,792,908.97)|||-||
|Langfang Baowan|(81,359,091.94)|||-||
|Longquan Baowan|(66,973,668.71)|||-||
|Xindu Baowan|(61,325,514.37)|||-||
|Guangzhou Baowan|(55,275,945.26)|||-||
|Shanghai Baowan|(49,035,029.33)|||-||
|Bingang Baowan|(10,206,400.00)|||-||
|Shenzhen Baowan|(1,167,086.35)|||-||
|Total|(60,879,699.45)|||626,630,115.47||

 Note: There is no fixed term for repayment for the above mentioned borrowings and loans. The interest rates are based on the market interest rates.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 9. Related party transactions- continued
(5) Income from deposits, loans and purchase of bank financing products
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount for the current period||Amount for the prior period||
|||||Proportion of the|||
|||||amount of||Proportion of the|
|||||related party||amount of related|
|||||transactions to||party transactions to|
|||Pricing principle of||that of similar||that of similar|
||Type of related|related party||transactions||transactions|
|Related party|party transaction|transaction|Amount|(%)|Amount|(%)|
|Interest income:|||||||
||Interest income|Negotiated interestrate(by reference tomarket rate)|47,903,162.99|92.21|46,918,166.92|82.89|
|Subsidiaries|||||||
||Interest income|Interest rate set bythe People's Bank ofChina|-|-|5,077,404.77|8.97|
|China Merchants Bank|||||||
||||47,903,162.99|92.21|51,995,571.69|91.86|
|Total|||||||
|Investment income;|||||||
||Investment income|Negotiated interestrate(by reference tomarket rate)|-|-|4,669,757.10|25.63|
|China Merchants Bank|||||||

(6) Interest expense for borrowings
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||Amount for the current period||Amount for the prior period||
|||||Proportion of||Proportion of the|
|||||the amount of||amount of|
|||||related party||related party|
|||||transactions to||transactions to|
|||||that of similar||that of similar|
||Type of related|Pricing principle of related||transactions||transactions|
|Related party|party transaction|party transaction|Amount|(%)|Amount|(%)|
||Interest expense|Negotiated interest rate (byreference to market rate)|47,705,000.00|51.87|47,705,000.00|56.80|
|Nanshan Group|||||||
||Interest expense|Interest rate set by thePeople's Bank of China|-|-|20,463,089.07|24.36|
|China Merchants Bank|||||||
|Total|||47,705,000.00|51.87|68,168,089.07|81.16|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2013
(XI) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 9. Related party transactions- continued
(7) Amounts due from/to related parties
Amounts due from related parties
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Related party||Closing balance||||Opening balance|||
|||Carrying amount|||Bad debt|Carrying amount|||Bad debt|
||||||provision||||provision|
|Dividends receivable|Shanghai Baowan|-||-||2,158,992.45||-||
||Shenzhen Baowan|-||-||578,565.09||-||
||Baowan Holdings|-||-||28,643,455.78||-||
||CSE|48,000,000.00||-||-||-||
||Total|48,000,000.00||-||31,381,013.32||-||
|Accounts receivable|CSE|3,854,041.82||38,540.42||1,021,439.48||10,214.39||
||CPEC|366,834.89||3,668.35||419,023.92||4,190.24||
||Nanshan Real EstateCompany|6,390.32||63.90||-||-||
||Total|4,227,267.03||42,272.67||1,440,463.40||14,404.63||
|Other receivable|Baowan Holdings|1,083,299,193.15||-||672,601,193.00||-||
||CPEC|146,888.94||1,468.89||146,888.94||-||
||CSE|22,971.48||229.71||1,061.40||-||
||Total|1,083,469,053.57||1,698.60||672,749,143.34||-||

 Amounts due to related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Related party|Closing balance|Opening balance|
|Accounts payable|Nanshan Group|6,132,919.30|6,340,144.88|
||CSE|16,554.40|-|
||Chixiao ConstructionCompany|9,740.00|9,740.00|
||Total|6,159,213.70|6,349,884.88|
|Interest payable|Nanshan Group|6,758,208.33|6,758,208.33|
|Other payables|Shenzhen Baowan|42,007,879.27|39,869,076.33|
||Nanshan Group|2,577,318.45|2,369,550.24|
||Chixiao ProjectCompany|1,277,632.65|4,214,956.33|
||Chixiao ConstructionCompany|500,000.00|-|
||CPEC|202,913.64|194,213.64|
||CSE|164,425.00|630,440.08|
||Total|46,730,169.01|47,278,236.62|
|Non-current liabilities due within one year|CSE|785,836.56|785,836.56|
|Other non-current liabilities|Nanshan Group|700,000,000.00|700,000,000.00|
||CSE|6,236,708.70|7,022,545.26|
||Total|706,236,708.70|707,022,545.26|

(XII) APPROVAL OF THE FINANCIAL STATEMENTS
The Company's financial statements and the consolidated financial statements were approved by
the board of directors and authorised for issue on 22April 2014.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2012
1. Breakdown of non-recurring profit or loss
Unit:RMB
|||||
|-|-|-|-|
|Item||Amount|Description|
|Profit or loss on disposal of non-current assets|223,146.43|||
|Government grants recognised in profit or loss for the current period(other|4,694,608.73|||
|than grants which are closely related to the Company's business and are||||
|either in fixed amounts or determined under quantitative methods in||||
|accordance with the national standard)||||
|Other non-operating income or expenses other than the above|265,188.43|||
|Tax effects|(1,295,735.90)|||
|Effects attributable to minority interests (after tax)|(12,317.29)|||
|Total|3,874,890.40|||

2. Return on equity (ROE) and earnings per share ("EPS")
The ROE and EPS have been prepared by Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (the "Company")in accordance with Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No. 9 - Calculation and Disclosure of Return on Equity and Earnings per Share (Revised 2010) issued by China Securities Regulatory Commission.
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Profit for the reporting period|||Weighted average return on||EPS|||
||Profit for the reporting period||net assets (%)||Basic EPS||Diluted EPS|
||Net profit attributable to ordinary|15.07%||0.90||Not applicable||
||shareholders of the Company|||||||
||Net profit after deduction of|14.78%||0.88||Not applicable||
||non-recurring profits or losses|||||||
||attributable to ordinary shareholders|||||||
||of the Company|||||||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2012
3. Abnormal financial statements items (“F/S items”) and description of reasons
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||F/S items||2013||2012||Change by%||Cause for the changes|
|1||Cash and bank balances||233,332,680.86||893,354,140.32||(73.88%)||Mainly due to purchase of bank financing products andrepayment of loans.||
|2||Other receivables||61,658,096.81||8,439,487.37||630.59%||Mainly due to increase in refundable prepayment for landuse right of subsidiaries.||
|3||Dividends receivable||48,000,000.00||-||NotApplicable||Representing dividends announced by Shenzhen ChiwanSembawang Engineering Co., Ltd., associate of theCompany, to be distributed from its previous year's profits.||
|4||Other current assets||547,610,000.00||370,086,712.21||47.97%||Mainly due to increase in investment in bank financingproducts.||
|5||Construction in progress||376,118,459.02||20,382,765.11||1,745.28%||Mainly caused by some subsidiaries' new construction inprogress started in current period, specifically the lot Alogistics park constriction of Guangzhou Baowan LogisticsCo., Ltd, subsidiary of the Company, logistics parkconstruction projects of Nanjing Baowan InternationalLogistics Co., Ltd ("Nanjing Baowan") and Phase IIIproject of Chengdu Longquan Baowan InternationalLogistics Co., Ltd, subsidiary of the Company.||
|6||Intangible assets||1,242,104,033.52||911,239,182.92||36.31%||Mainly due to some subsidiaries' acquisition of land userights, i.e., Nanjing Baowan, Tianjin Bingang BaowanInternational Logistics Co., Ltd, Nantong BaowanInternational Logistics Co., Ltd, Shenyang BaowanInternational Logistics Co., Ltd and Baowan Logistics(Wuhan) Co., Ltd.||
|7||Other non-current assets||17,273,362.26||232,296,392.97||(92.56%)||Mainly due to some subsidiaries' acquisition of land userights, leading to decrease in prepayments for lands.||
|8||Taxes payable||47,821,808.03||21,070,585.27||126.96%||Mainly due to increase in income tax payable balances ofthe Company and Shanghai Baowan International LogisticsCo., Ltd.||
|9||Other payables||235,814,254.97||137,058,564.60||72.05%||Mainly due to input of construction in progress of somesubsidiaries, leading to increase in payables to constructioncontractors.||
|10||Non-current liabilitiesdue within one year||311,049,351.16||1,349,351.16||22,951.77%||Mainly caused by re-classification of long-term borrowingsdue within one year.||
|11||Long-term borrowings||185,443,647.96||833,063,851.56||(77.74%)||Mainly due to repaying of long-term borrowings in currentperiod and re-classification of long-term borrowings duewithin one year.||
|12||Operating income||691,832,626.47||578,591,906.37||19.57%||Mainly arising from performance growth of the Companyand some subsidiaries.||
|13||Operating costs||252,860,477.85||230,078,993.62||9.90%||Mainly arising from performance growth of the Companyand some subsidiaries.||
||14|Operating expenses||88,860,395.44||65,804,669.78||35.04%||Mainly due to increase in labor cost.||
|15||Investment income||95,467,912.62||77,110,684.65||23.81%||Mainly arising from performance growth of associates andincome from bank financing products.||
|16||Income tax expenses||53,582,318.37||26,045,194.39||105.73%||Mainly due to increase of Company's profit before tax andthe change from assessment basis to statutory tax rate of25% on taxable income in Shanghai Baowan InternationalLogistics Co., Ltd.'s income tax.||

The supplementary information was signed by the following responsible persons of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. on 22 April 2014:
TianJunyan Yu Zhongxia Sun Yuhui Legal Representative Person in Charge of Chief Accountant
the Accounting Body