SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
2014 Semi-annual Report
Date of disclosure: 27 August 2014
2014 Semi-annual Report Section I. Important Reminders, Contents& Definition
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that. This Semi-Annual Report has been reviewed and approved at the Second Session of the Eighth Board of Directors of the Company. Due to business reasons, Chairman Zheng Shaoping and Vice Chairman Wang Zhixian did not attend the meeting, and they both gave their consent to all the propasals reviewed at the session and authorized Director Deng Weidong to chair the session, express opinion and sign relevant documents on behalf of them.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into share capital in the interim of 2014.
Mr. Zheng Shaoping, chairman of the Board of Directors, Mr. Zhang Fang, CFO, and Ms. Li Li, financial manager, hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete.
The future plans, development strategies and some other forward-looking statements mentioned in this report shall not be considered as virtual promises of the Company to investors. And investors are kindly reminded to pay attention to possible risks.
This semi-annual report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
2014 Semi-annual Report Catalogue
Section I. Important Reminders, Contents& Definition..........................................................1 Section II. Company Profile.....................................................................................................4 Section III. Accounting& Business Highlights.......................................................................6 Section IV. Report of the Board of Directors...........................................................................8 Section V. Significant Events.................................................................................................16 Section VI. Change in Shares& Shareholders.......................................................................26 Section VII. Directors, Supervisors& Senior Management Staff.........................................28 Section VIII. Financial Report...............................................................................................30 Section IX. Documents Available for Reference...................................................................30
2014 Semi-annual Report Explanation
||||
|-|-|-|
|Term|Refers to|Definition|
|Company, the Company or Chiwan|||
||Refers to|Shenzhen Chiwan Wharf Holdings Limited|
|Wharf|||
|CMHI|Refers to|China Merchants Holdings (International) Company Limited|
|CND Group|Refers to|China Nanshan Development (Group) Inc.|
|Malai Storage|Refers to|Shenzhen Malai Storage Co., Ltd.|
|||Keen Field Enterprises Limited, a wholly-funded subsidiary|
|KFEL|Refers to||
|||of China Merchants Holdings (International)|
|“the Company Law”|Refers to|“the Company Law of the People’s Republic of China”|
|“the Securities Law”|Refers to|“the Securities Law of the People’s Republic of China”|
|||“the Articles of Association of Shenzhen Chiwan Wharf|
|“the Articles of Association”|Refers to||
|||Holdings Limited”|

2014 Semi-annual Report Section II. Company Profile
I. Basic information of the Company
|||||
|-|-|-|-|
|Stock abbreviation|Chiwan Wharf A, Chiwan Wharf B|Stock code|000022, 200022|
|Stock exchange listed with|Shenzhen Stock Exchange|||
|Chinese name of the Company|深圳赤湾港航股份有限公司|||
|Abbr. of the Chinese name of the Company|深赤湾|||
|English name of the Company|Shenzhen Chiwan Wharf Holdings Limited|||
|Abbr. of the English name of the Company|Chiwan Wharf|||
|Legal representative of the Company|Mr. Zheng Shaoping, chairman|||

II. Contact information
||||
|-|-|-|
||Company Secretary|Securities Affairs Representative|
|Name|Ms. Bu Dan|Ms. Hu Jingjing|
||8/F, Chiwan Petroleum Building,|8/F, Chiwan Petroleum Building,|
|Contact address|||
||Shenzhen, PRC|Shenzhen, PRC|
|Tel.|+86 755 26694222|+86 755 26694222|
|Fax|+86 755 26684117|+86 755 26684117|
|E-mail|cwh@cndi.com|cwh@cndi.com|

III. Other information
1. Ways to contact the Company
The registered address, office address and their postal codes, website address and email address of the Company did not change during the reporting period.
|||
|-|-|
|Registered address|Chiwan, Shenzhen, PRC|
|Postal code for the registered address|518067|
|Office address|8/F, Chiwan Petroleum Building, Shenzhen, PRC|
|Postal code for the office address|518067|
|Internet website of the Company|http://www.szcwh.com|
|Email address|cwh@cndi.com|

2014 Semi-annual Report 2. About information disclosure and where this report is placed
The newspapers designated by the Company for information disclosure, the website designated by CSRC for disclosing this report and the location where this report is placed did not change during the reporting period.
|||
|-|-|
|Newspapers designated by the Company for information disclosure|Securities Times, Ta Kung Pao (HK)|
|Internet website designated by CSRC for disclosing this report|http://www.cninfo.com.cn|
|Where this report is placed|Company Secretary Office|

3. Change of the registered information
The registration date and place of the Company, its business license No., taxation registration No. and organizational code did not change during the reporting period.
||||||||
|-|-|-|-|-|-|-|
||Registration|Registration|Business|Registration code of|Organizational||
|||||||Query index|
||date|place|license No.|taxation|code||
|||||||Market|
|Initial||Chiwan,|4403015011|SSDZ No.|||
||19 Jul. 1990||||61883296-8|Supervision|
|registration||Shenzhen|24494|440300618832968|||
|||||||Administration|
|||||||Bureau of|
|At the end|||||||
|||||||Shenzhen|
|of the||Chiwan,|4403015011|SSDZ No.|||
||24 Apr. 2013||||61883296-8|Municipality|
|reporting||Shenzhen|24494|440300618832968|||
|||||||(http://www.szaic.|
|period|||||||
|||||||gov.cn)|
|Changes of the main|||||||
|business since listing (if||Unchanged|||||
|any)|||||||
|Changes of the controlling|||||||
|||N/A|||||
|shareholder (if any)|||||||

2014 Semi-annual Report Section III. Accounting& Business Highlights
I. Major accounting data and financial indicators
Unit: RMB
|||||
|-|-|-|-|
||Jan.-Jun. 2014|Jan.-Jun. 2013|YoY +/-|
||875,981,241.59|865,235,792.24||
|Operating income|||1.24%|
|Net profit attributable to|235,338,598.71|295,594,905.20||
||||-20.38%|
|shareholders of the parent||||
|Net profit attributable to||||
|shareholders of the parent after|233,093,807.14|294,817,033.01|-20.94%|
|extraordinary gains and losses||||
|Net cash flows from operating|282,633,209.75|357,817,144.38||
||||-21.01%|
|activities||||
||0.365|0.458||
|Basic EPS (RMB Yuan/share)|||-20.31%|
||0.365|0.458||
|Diluted EPS (RMB Yuan/share)|||-20.31%|
|Weighted average ROE|5.85%|7.80%|-1.95%|
||30 Jun. 2014|31 Dec. 2013|+/-|
||7,470,426,613.37|7,346,529,214.70||
|Total assets|||1.69%|
|Total shareholder’s equity|3,932,905,331.07|3,947,846,392.77||
|attributable to equity holders of|||-0.38%|
|the parent||||

Number of theCompany’s total shares in the trading day before disclosure:
|||
|-|-|
|Number of the Company’s total shares in the trading day before disclosure|644,763,730|

 II. Differences between accounting data under domestic and overseas accounting standards Unit: RMB
||||||
|-|-|-|-|-|
||Net profit attributable to shareholders of||Net assets attributable to||
||the parent||shareholders of the parent||
||Jan.-Jun. 2014|Jan.-Jun. 2013|Closing balance|Opening balance|
|According to Chinese|235,338,598.71|295,594,905.20|3,932,905,331.07|3,947,846,392.77|
|accounting standards|||||
|According to international and|N/A||||
|overseas accounting standards|||||

2014 Semi-annual Report III. Items and amounts of extraordinary gains and losses
Unit: RMB
|||
|-|-|
|Item|Amount|
||(74,463.56)|
|Profit or loss on the disposal of non-current assets||
||4,290,189.30|
|Government grants recognized in current gains and losses||
||296,405.13|
|Non-operating income and expense other than the above||
||938,290.52|
|Less: Tax effects||
||1,329,048.78|
|Effects of minority interests||
||2,244,791.57|
|Total||

 In the reporting period, the Company did not turn any item that should be considered as an extraordinary gain/loss item according to the definition and examples in The Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses into a recurrent gain/loss item.
2014 Semi-annual Report Section IV. Report of the Board of Directors
I. Overview
The Company is principally engaged in the handling, warehousing and transportation of containers and bulk cargoes, as well as the provision of related services.
The reporting period witnessed a slow recovery of the global economy, continuous weakness of the shipping market, a sharp drop in the growth of import& export and a growth slowdown of the cargo throughput and the container throughput of ports in the country. The container throughput of all ports in the country increased5.7% from the same period of last year, down by 2.6 percentage points, with that of Shenzhen Port (mainly engaged in foreign trade) registering a year-on-year drop of0.9%. Affected by a weak market and a high proportion of international transit in the business structure, the container throughput of the Company went down10.7% year on year. As for the bulk cargo business, the handling capacity of Machong Port was released to a great extent, boosting the bulk cargo throughput of the Company to grow31.0% in the first half of 2014. And at the same time, the proportion of cargo sources from foreign trade increased considerably and the business structure further improved. To be specific, in the reporting period, the cargo throughput of Chiwan Port went down14.9% year on year due to resource reduction and business relocation while that of Machong Port soared101.2% because of the excellent results of its market expansion effort and the rapid development of its business. Business highlights of the Company are set out as follows:
|||||
|-|-|-|-|
|Main business indicator|Reporting period(Jan.-Jun. 2014)|Same period of last year(Jan.-Jun. 2013)|YoY +/-|
|Total throughput (thousand tons)|30,821|32,868|-6.2%|
|Among which: Container throughput (thousand TEU)|2,395|2,681|-10.7%|
|Chiwan Port|1,775|2,035|-12.8%|
|Mawan Port|620|646|-4.0%|
|Throughput of bulk cargo (thousand tons)|7,823|5,974|31.0%|
|Chiwan Port|3,075|3,614|-14.9%|
|Machong Port|4,748|2,360|101.2%|
|Hours charged for tow trucks (thousand hours)|543|585|-7.2%|
|Hours charged for tugboats (hour)|14,581|15,320|-4.8%|

 The world economy will remain complex and changeable in the second half of 2014, with continuously polarized recovery and growth in it. And the domestic economy shows a tendency of restructuring. With weak demand growth both at home and abroad, as well as the continuous overcapacity, it is hard for the shipping market to recover. We will face some big challenges in the container business in the future. And as countermeasures, we will continue to enhance our effort in exploring local cargo sources, speed up berth alteration to adapt to bigger ships, improve the
operation efficiency and service, and try to maintain relative stability of our current market share.
Our bulk cargo business will keep growing steadily, but the throughput is expected to slow down in
growth in the second half of the year due to the market situation. We will also continue to push
2014 Semi-annual Report forward delicacy management and cost decreasing& benefit increasing, accelerate the warehouse supporting project for Machong Port, attach importance to technique innovation and energy saving& consumption reduction, and thoroughly improve the port resource utilization efficiency and enterprise operation efficiency.
II. Main business analysis
In the reporting period, operating costs increased18.56% year on year mainly because the depreciation, labor, outsourcing, rent costs and so on increased. Financial expenses increased191.75% from the same period of last year mainly because the average occupation amount of interest-borne loans, the loan interest rate and the exchange loss on RMB depreciation increased. Net cash outflows from investing activities decreased60.71% mainly because the Machong Port project was almost completed and the investment in fixed assets decreased. Net cash flows from financing activities decreased261.77% because the due short-term financing bills of RMB 500 million were repaid in the reporting period while there was no such event in the same period of last year.
Unit: RMB
|||||
|-|-|-|-|
||Jan.-Jun. 2014|Jan.-Jun. 2013|YoY +/-|
||875,981,241.59|865,235,792.24||
|Operating income|||1.24%|
||462,666,123.14|390,222,276.89||
|Operating costs|||18.56%|
||77,865,679.19|73,855,832.02||
|General and administrative expenses|||5.43%|
||37,195,762.94|12,749,188.04||
|Financial expenses|||191.75%|
||53,240,327.00|54,179,137.41||
|Income tax expenses|||-1.73%|
||282,633,209.75|357,817,144.38||
|Net cash flows from operating activities|||-21.01%|
||(57,419,206.24)|(146,130,430.12)||
|Net cash flows from investing activities|||60.71%|
||(158,429,813.22)|97,936,227.02||
|Net cash flows from financing activities|||-261.77%|
||67,291,599.59|308,564,992.48||
|Net increase in cash and cash equivalents|||-78.19%|

 No major changes occurred to the profit structure or sources of the Company during the reporting period.
In the reporting period, we pushed forward all the work in an orderly manner as planned. The upgrading alteration of container berths were completed, our efforts in exploring local cargo sources produced good results, and the port environment continued to improve. The Machong Phase-II wharf went into trial operation this May and we carried on with fertilizer relocation step by step to satisfyclients’ needs, enabling Chiwan Port and Machong Port to support each other in development. Meanwhile, we enhanced cooperation with other ports in the region and helped keep a good market order. Our core business and main clients remained stable.
2014 Semi-annual Report III. Breakdown of main business
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrease||Increase/decrease|
||||||Increase/decrease||
|||||of operating||of gross profit|
||Operating|Operating|Gross||of operating costs||
|||||income over the||rate over the|
||income|costs|profit rate||over the same||
|||||same period of||same period of|
||||||period of last year||
|||||last year||last year|
|Classified by industry:|||||||
|Cargo handling|||||||
||825,037,404.52|435,215,993.40|47.25%|1.53%|18.37%|-7.50%|
|Classified by region:|||||||
|Mainland China|873,585,381.02|458,261,343.40|47.54%|1.34%|18.94%|-7.76%|

 IV. Core competitiveness analysis
Upon 30 years of development, the Company has gathered a pool of experienced professionals and an excellent managerial team, with its business management highly recognized by shareholders and clients. With stable client sources and efficient business process flows, the Company is considered a leader in the sector in terms of operating efficiency. As a mature listed port company in China, the Company owns an excellent brand and reputation in the market.
Change in our core competitiveness in the reporting period: The Machong Phase-II wharf went into trial operation in May 2014, which has greatly improved our port resource capability and market competitiveness, providing favorable conditions for the rapid and steady development of our bulk cargo business.
V. Investment analysis
1. Investments in equities of external parties
（1） Investments in external parties
The Company did not invest in any external party during the reporting period.
（2）Equity-holdings in financial enterprises
The Company did not have any equity-holding in any financial enterprise during the reporting period.
2014 Semi-annual Report（3）Securities investments
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Variety|||Initial|Number ofshares heldat period-begin|Shareholding|Number of|Shareholdingpercentage atperiod-end||Gain/loss|||
||Code of|Name of||||shares held||Closing|for|Accounting|Source of|
|of|||investment||percentage at|||||||
||securities|securities||||at period-||book value|reporting|title|stock|
|securities|||cost||period-begin|||||||
|||||||end|||period|||
||||||||||||Shares held bylegal entity,which isallowed forcirculationafter sharereform|
|||||||||||Available-||
|||Ninghu||||||||for-sale||
|Stock|600377||1,120,000|1,000,000|0.02%|1,000,000|0.02%|5,540,000|380,000|||
|||Expressway||||||||financial||
|||||||||||assets||
||||||||||||Shares held bylegal entity|
|||||||||||Long-term||
|||Petro-||||||||||
|Stock|400032||3,500,000|780,000|0.26%|780,000|0.26%|382,200|-|equity||
|||chemical A1||||||||||
|||||||||||investment||
||||||||||||Shares held bylegal entity|
|||||||||||Long-term||
|||Guang Jian||||||||||
|Stock|400009||27,500|20,000|0.02%|20,000|0.02%|17,000|-|equity||
|||1||||||||||
|||||||||||investment||
|Total|||4,647,500|1,800,000|--|1,800,000|--|5,939,200|380,000|--|--|

 The Company did not hold any equity in any other listed company in the reporting period.
2. Wealth management entrustment, derivative investments and entrustment loans
（1）Wealth management entrustment
Unit: RMB’000
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Beginningdate|Endingdate||Principal|||Actual|
|||Related-||||||actually|||gains and|
||Related-||||||Payment|||||
|Name of||party|Type of|||||recovered|Impairment|Anticipated|losses in|
||party|||Amount|||determina|||||
|trustee||transaction|product|||||in the|provision|gain|the|
||relation||||||tion|||||
|||or not||||||reporting|||reporting|
|||||||||period|||period|
|Agricultural|||||3 Apr.2014|||||||
|Bank of|||principal-|||13 May|Floating|||||
||--|No||250,000||||250,000|0|1,202.1|1,202.1|
|China Co.,|||protected|||2014|earnings|||||
|Ltd.||||||||||||
|Total||||250,000|--|--|--|250,000|0|1,202.1|1,202.1|
|Source of the entrusted funds||||Our own idle funds||||||||
|Cumulative overdue principals and gains||||0||||||||
|Lawsuit (if applicable)||||Inapplicable||||||||
|Disclosure date of the board announcement||||||||||||
|approving the wealth management||||29 Jan. 2014||||||||
|entrustment (if any)||||||||||||
|Disclosure date of the general meeting||||||||||||
|announcement approving the wealth||||Inapplicable||||||||
|management entrustment (if any)||||||||||||

2014 Semi-annual Report（2）Derivative investment
The Company did not carry out any derivative investment in the reporting period.
（3）Entrustment loans
There were no entrustment loans in the reporting period.
3. Use of raised funds
（1）Overview of the use of raised funds
Unit: RMB’000
|||
|-|-|
|Total raised funds|400,000|
|Raised funds input in the reporting period|400,000|
|Raised funds accumulatively input|400,000|
|Raised funds with changed use in the reporting|0|
|period||
|Accumulative raised funds with changed use|0|
|Proportion of accumulative raised funds with||
||0%|
|changed use||
|Overview of the use of raised funds||
|The Company issued short-term financing bills of RMB 400 million on 26 Jun. 2014, all of which were used to||
|supplementing the working capital.||

（2）Projects promised to be invested with raised funds
Unit: RMB’000
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Project|||||Investm|Date when|||Material|
|Projects invested with||||||||Profit|||
||changed or|Raised||Input in|Accumulative|ent|the project||Reach the|change in|
|raised capital as|||Investment|||||generated|||
||not|capital||the|input up to|progress|reaches the||expected|the|
|promised and|||after|||||in the|||
||(including|input as||reporting|the period-|up to the|expected||profit or|project|
|investments with over-|||adjustment|||||reporting|||
||partially|promised||year|end|period-|usable||not|feasibility|
|raised capital||||||||period|||
||changed)|||||end|condition|||or not|
|Projects invested with raised capital as promised|||||||||||
|For supplementing|||||||||||
||--|400,000|400,000|400,000|400,000|100%|--|--|--|--|
|working capital|||||||||||
|Subtotal of promised|||||||||||
||--|400,000|400,000|400,000|400,000|--|--|--|--|--|
|investment projects|||||||||||
|Investments of over-raised capital|||||||||||
|Inapplicable||0|0|0|0|0%||0|||
|Subtotal of investments|||||||||||
||--|0|0|0|0|--|--|0|--|--|
|with over-raised capital|||||||||||
|Total|--|400,000|400,000|400,000|400,000|--|--|0|--|--|
|Reason for failing to|||||||||||
|reach scheduled|||||||||||
|progress or projected|N/A||||||||||
|income (explain one|||||||||||
|project by one project)|||||||||||
|Explanation on|||||||||||
|significant changes in|N/A||||||||||
|feasibility of projects|||||||||||
|Amount, usage and|||||||||||
|usage progress of over-|N/A||||||||||
|raised capital|||||||||||
|Change of the|N/A||||||||||

2014 Semi-annual Report
|||
|-|-|
|implementation||
|location of any raised||
|funds investment||
|project||
|Adjustment of the||
|implementation||
|method of any raised|N/A|
|funds investment||
|project||
|Advance input and||
|exchange of any raised||
||N/A|
|funds investment||
|project||
|Idle raised capital for||
|temporarily||
||N/A|
|supplementing working||
|capital||
|Outstanding raised||
|funds in project||
||N/A|
|implementation and||
|reasons||
|Usage and whereabouts||
||N/A|
|of unused raise capital||
|Problems found in the||
|usage and information||
|disclosure of raised|N/A|
|capital and other||
|matters||

（3）Change of raised-funds-invested projects
No change of raised-funds-invested projects during the reporting period.
4. Analysis to main subsidiaries and stock-participating companies
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Main|||||||
|Company|Company|||Registered|||Operating|Operating||
|||Industry|products/ser||Total assets|Net assets|||Net profit|
|name|variety|||capital|||income|profit||
||||vices|||||||
|Chiwan||||||||||
|Container||Transporta|Container|USD 95.3||||||
||Subsidiary||||2,470,361,584.20|1,656,267,039.55|336,644,747.20|122,130,779.01|100,054,576.66|
|Terminal||tion|handling|million||||||
|Co., Ltd.||||||||||
|Shenzhen||||||||||
|Chiwan||||RMB||||||
|||Transporta|Container|||||||
|Harbor|Subsidiary|||288.2|757,984,404.18|547,440,490.39|155,506,928.15|85,090,035.64|81,550,803.16|
|||tion|handling|||||||
|Container||||million||||||
|Co. Ltd.||||||||||
|Dongguan||||||||||
||||Handling|||||||
|Chiwan||||||||||
|||Transporta|and storage|RMB 450||||||
|Wharf|Subsidiary||||995,526,956.94|576,342,977.90|169,746,878.36|68,775,163.99|60,286,671.00|
|||tion|of bulk|million||||||
|Company||||||||||
||||cargos|||||||
|Limited||||||||||

5. Significant projects of investments with non-raised funds
Unit: RMB’000
|||||||
|-|-|-|-|-|-|
||||Cumulative actual|||
||Total planned|Input for the||Project|Project|
|Project name|||input as at the|||
||investment|reporting period||progress|earnings|
||||period-end|||
|Berth 4# and 5# of Machong Port|624,225.2|46,738.7|657,860.4|100%|--|
|Equipment for berth 2#-3#, Machong Port|37,712.0|8,485.8|33,883.1|90%|--|
|Total|661,937.2|55,224.5|691,743.5|--|--|

2014 Semi-annual Report VI. Implementation of profit allocation during the reporting period
Pursuant to the guiding spirit of the Notice of CSRC on Further Implementing Matters Related to Cash Dividends of Listed Companies, the Notice of CSRC Shenzhen Bureau on Fully Implementing the Notice of CSRC on Further Implementing Matters Related to Cash Dividends of Listed Companies (Shen-Zheng-Ju-Gong-Si-Zi (2012) No. 43), the Company has revised some articles in its Articles of Association in relation to the profit distribution policy, which involves the specific policy, the decision-making procedure and mechanism, the adjustment and implementation of the profit distribution policy, profit distributed to foreign shareholders and other aspects (for the revised Articles of Association of the Company, see www.cninfo.com.cn). The revised Articles of Association of the Company was reviewed and approved on the
5th
Special Session of the
7th Board of Directors for 2012 on 3 Aug. 2012, and later on the
1st
SpecialShareholders’ General Meeting for 2012 on 21 Aug. 2012. During the reporting period, the Company executed the profit allocation policy in strict compliance with the revised Articles of Association, and it did not again alter the profit allocation policy, especially the cash dividend policy.
|||
|-|-|
|Special statement about the cash dividend policy||
|In compliance with the Company’s Articles of Association and the resolution of the||
||Yes|
|general meeting||
|Specific and clear dividend standard and ratio|Yes|
|Complete decision-making procedure and mechanism|Yes|
|Independent directors fulfilled their responsibilities and played their due role.|Yes|
|Minority shareholders have the chance to fully express their opinion and desire and their||
||Yes|
|legal rights and interests were fully protected.||
|In adjustment or alteration of the cash dividend policy, the conditions and procedure were||
||Yes|
|in compliance with regulations and transparent.||

As audited by Deloitte Touche Tohmatsu Certified Public Accountants LLP, the net profit of the Company (without subsidiaries) for 2013 stood at RMB 363,887,260.39 and the cumulative distributable profit at RMB 667,999,192.32.
1) According to the Company Law and the Articles of Association of the Company, RMB 36,388,726.04,10% of the audited net profit of the Company (without subsidiaries) for 2013 was taken out as statutory surplus reserve.
2) As planned, based on the total 644,763,730 shares as at the end of 2013, a cash dividend of RMB 3.90 (tax included) was to be distributed for every 10 shares, with a total of RMB 251,457,854.70 being distributed.
After the aforesaid allocations, the retained profit of the Company (without subsidiaries) stood at RMB 380,152,611.58.
Implementation of the said profit allocation plan was completed on 18 Jul. 2014, with the date of record for A-shares and the last trading date for B-shares both on 15 Jul. 2014 and the ex-dividend date on 16 Jul. 2014.
2014 Semi-annual Report VII. Preplan for profit distribution and turning capital reserve into share capital for the reporting period
The Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital for the reporting period.
VIII. Particulars about researches, visits and interviews received in this reporting period
|||||||
|-|-|-|-|-|-|
||Place of|Way of|||Main discussion and materials|
|Time of reception|||Visitor type|Visitor||
||reception|reception|||provided by the Company|
||||||Basic operation situation of the|
||Office of the|Telephone||Individual||
|Jan.-Jun. 2014|||Individual||Company, investments made and its|
||Company|communication||investors||
||||||financial position|

2014 Semi-annual Report Section V. Significant Events
I. Corporate governance
Ever since its establishment, the Company has been in strict compliance with the company law and securities law, as well as relevant laws and regulations issued by CSRC. And it has timely formulated and amended its relevant management rules according to the Code of Corporate Governance for Listed Companies, which are conscientiously and carefully executed. An effective system of internal control has thus taken shape in the Company.
According to our business development and operational needs, as well as the requirements by relevant laws and regulations of regulators, we revised Article 17, Article 67, Article 75, Article 106, Article 111, Article 113 and Article 154 of our Articles of Association. The revisions were reviewed and approved at the
7th
Session of the
7th
Board of Directors on 27 Mar. 2014, and then at the 2013 AnnualShareholders’ General Meeting on 22 May 2014.
In the reporting period, according to our business development and operational needs, we revised The Rules of Procedure for the General Meeting, The Rules of Procedure for the Board of Directors and The Specific Work Rules for GM under The Articles of Association. The revisions were reviewed and approved at the
2nd
Special Session of the
7th
Board of Directors for 2014 on 23 Apr. 2014, and then at the 2013 AnnualShareholders’ General Meeting on 22 May 2014.
In order to further improve the governance structure and standardize the operation, pursuant to The Guidelines of Shenzhen Stock Exchange for Standardized Operation of Main Board Listed Companies, The Filing Methods of Shenzhen Stock Exchange for Independent Directors (revised in 2011), etc., we revised The Decision-making Rules for Related-party Transactions and The Working Rules for Independent Directors. The revisions were reviewed and approved at the 2nd Special Session of the
7th
Board of Directors for 2014 on 23 Apr. 2014, and then at the 2013 AnnualShareholders’ General Meeting on 22 May 2014.
In the reporting period, according to The Company Law and other applicable laws and administrative regulations, we revised The Rules of Procedure for the Supervisory Committee. The revisions were reviewed and approved at the
1st
Special Session of the
7th
Supervisory Committee for 2014 on 23 Apr. 2014, and then at the 2013 AnnualShareholders’ General Meeting on 22 May 2014.
II. Significant lawsuits or arbitrations
There was no significant lawsuit or arbitration in the reporting period.
III.Media’s queries
There was nomedia’s common query during the reporting period.
IV. Bankruptcy reorganization
No event involving bankruptcy reorganization occurred to the Company in the reporting period.
2014 Semi-annual Report V. Asset transactions
1. Purchase of assets
There was no purchase of assets by the Company during the reporting period.
2. Sale of assets
There was no sale of assets by the Company during the reporting period.
3. Business combination
The “Proposal on the Company Merging Shenzhen Chiwan Terminal Co., Ltd. and Shenzhen Chiwan Trans-Grains Terminal Limited” was reviewed and approved at the 5th Special Session of the 7th Board of Directors for 2013 on 23 Apr. 2013 and later at the 2012 AnnualShareholders’ General Meeting on 21 May 2013, agreeing the Company to merge Shenzhen Chiwan Terminal Co., Ltd. and Shenzhen Chiwan Trans-Grains Terminal Limited into itself to operate the bulk cargo handing business in Chiwan Port under unified management. After the merge, Shenzhen Chiwan Terminal Co., Ltd. and Shenzhen Chiwan Trans-Grains Terminal Limited will be crossed off and the Company will become the main operating unit of the bulk cargo handling business in Chiwan Port. For the relevant resolution announcements, see the announcements (No. 2013-027 and 2013- 034) disclosed on Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn dated 24 Apr. 2013 and 22 May 2013.
In Nov. 2013, the Company received the “Reply of the Economy, Trade and Information Commission of Shenzhen Municipality about Preliminary Approval to the Merge of Shenzhen Chiwan Terminal Co., Ltd. into Shenzhen Chiwan Wharf Holdings Limited” (SJMXXZZ[2013] No. 1883). And the relevant progress announcement (No. 2013-059) was disclosed on Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn dated 22 Nov. 2013.
In Jan. 2014, the Company received the “Reply of the Economy, Trade and Information Commission of Shenzhen Municipality about Approval to the Merger between Shenzhen Chiwan Wharf Holdings Limited and Shenzhen Chiwan Terminal Co., Ltd.” (SJMXXZZ[2014] No. 109), approving the combination of the two companies in the form of a merger. The Company survived the merger; and Shenzhen Chiwan Terminal Co., Ltd. was dissolved in the merger and all itscreditor’s rights, liabilities and properties were assumed by the Company. After the merger, the total share capital and registered capital of the Company remained the same. And the relevant announcement (No. 2014-005) was disclosed on Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn dated 14 Feb. 2014.
In Feb. 2014, Shenzhen Chiwan Terminal Co., Ltd. canceled its registration with the Market Supervision Administration Bureau of Shenzhen Municipality and received the “Enterprise Cancellation Notice” issued by the Bureau. And the relevant announcement (No. 2014-007) was disclosed on Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn dated 28 Feb. 2014. VI. Implementation of equity incentive and its influence
The Company did not make or carry out any equity incentive plan during the reporting period.
2014 Semi-annual Report VII. Significant related-party transactions
1. Related-party transactions concerning routine operation
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportionin the total|||||
||||||||||Obtainable|||
|||||||Transaction||||||
|Related|||Contents||Transaction||||market price for|||
|||Type of the||Pricing||amount|amounts of|Mode of||Disclosure|Disclosure|
|transact|i Relation||of the||price (RMB||||the transaction|||
|||transaction||principle||(RMB|transactions|settlement||date|index|
|on party|||transaction||Yuan)||||of the same kind|||
|||||||Thousand)|of the samekind (%)|||||
||||||||||(RMB Yuan)|||
||Shareholder||||||||||See|
||||||||||||http://www.|
||||||||||||cninfo.com.|
|||||||||Rent||||
|CND|||Land use|Mutual||||||29 Mar.|cn for the|
|||Lease|||29,420,925.56|29,420.9|84.05%|payment|29,420,925.56|||
|Group|||fee|negotiation||||||2014|resolution|
|||||||||by month||||
||||||||||||announceme|
||||||||||||nt (No.|
||||||||||||2014-013)|
|Total||||--|--|29,420.9|--|--|--|--|--|

 2. Related-party transactions arising from acquisition and sale of assets
No related-party transaction arising from acquisition or sale of assets occurred to the Company during the reporting period.
3. Related-party transactions arising from joint investment in external parties
No related-party transaction arising from joint investment in external parties occurred to the Company during the reporting period.
4. Credits and liabilities with related parties
Unit:RMB’000
|||||||||
|-|-|-|-|-|-|-|-|
|||||Non-operating||Amount||
|||Variety of||||||
|||||capital|Opening|incurred in|Closing|
|Related party|Relationship|credit or|Reason|||||
|||||occupation|balance|reporting|balance|
|||liability||||||
|||||(Yes/No)||period||
||A director of the|||||||
|hina|Company’s actual|Credit||||||
||||Bank|||||
|Merchants|controller is also a|receivable from||No|152,851.2|1,700,321.6|438,701.6|
||||deposits|||||
|ank Co., Ltd.|director of China|related party||||||
||Merchants Bank.|||||||

5. Other significant related-party transactions
||||
|-|-|-|
||Disclosure date of the interim|Website where the interim|
|Title of the interim announcement|||
||announcement|announcement was disclosed|
|Announcement on the Related-partyTransaction Arising from Signing <TheFinancial Service Agreement> with ChinaDevelopment Finance Co., Ltd.|||
||29 Mar. 2014|www.cninfo.com.cn|

2014 Semi-annual Report VIII. Occupation of theCompany’s funds for non-operating purposes by the controlling shareholder and its related parties
The controlling shareholder or its related parties did not occupy theCompany’s funds for non- operating purposes during the reporting period.
IX. Significant contracts and fulfillment thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
The Company did not make any entrustment in the reporting period.
(2) Contracting
The Company was not involved in any contracting in the reporting period.
(3) Leasing
The Company was not involved in any leasing in the reporting period.
2. Guarantees provided by the Company
Unit:RMB’000
||||||||||
|-|-|-|-|-|-|-|-|-|
|Guarantees provided by the Company for its subsidiaries|||||||||
||Disclosure date||||||||
||||Actual|||||Guarantee|
||of relevant|Amount||Actual|||||
|Guaranteed|||occurrence||Type of|Period of|Executed|for a related|
||announcement|for||guarantee|||||
|party|||date (date of||guarantee|guarantee|or not|party or not|
||on the guarantee|guarantee||amount|||||
||||agreement)|||||(Yes/No)|
||amount||||||||
|Dongguan|||||||||
|Chiwan|||||||||
||26 Apr. 2012|100,000|N/A|N/A|N/A|N/A|N/A|N/A|
|Terminal Co.,|||||||||
|Ltd.|||||||||
|Shenzhen|||||||||
|Chiwan Harbor|||||||||
||26 Apr. 2012|100,000|N/A|N/A|N/A|N/A|N/A|N/A|
|Container Co.,|||||||||
|Ltd.|||||||||
|||||Total actual occurred|||||
|Total guarantee line approved|||||||||
|||||amount of guarantee for|||||
|for the subsidiaries during the||0||||0|||
|||||the subsidiaries during|||||
|reporting period|||||||||
|||||the reporting period|||||
|Total guarantee line that has||||Total actual guarantee|||||
|been approved for the||||balance for the|||||
|||200,000||||0|||
|subsidiaries at the end of the||||subsidiaries at the end|||||
|reporting period||||of the reporting period|||||
|Total guarantee amount provided by the Company|||||||||
|Total guarantee line that has||||Total actual guarantee|||||
|been approved at the end of the||200,000||balance at the end of||0|||
|reporting period||||the reporting period|||||

2014 Semi-annual Report
|||
|-|-|
|Proportion of total guarantee amount to the net assets of||
||0%|
|the Company||
|Of which:||
|Amount of guarantee for shareholders, actual controller||
||-|
|and related parties||
|Amount of debt guarantee provided for the guaranteed||
|party whose asset-liability ratio is not less than 70%|-|
|directly or indirectly||
|Part of the amount of the total guarantee over 50% of net||
||-|
|assets||
|Total amount of the above three guarantees|-|
|Explanation on possible bearing joint responsibility of||
||N/A|
|liquidation due to immature guarantee (if any)||
|Explanation on provision of guarantees for external parties||
||N/A|
|in violation of the prescribed procedure (if any)||

The Company did not illegally provide any guarantee for any external party in the reporting period. 3. Other significant contracts
There was no other significant contract of the Company in the reporting period.
4. Other significant transactions
The Company was not involved in any other significant transaction in the reporting period.
X. Commitments made by the Company or shareholders holding over5% of theCompany’s shares in the reporting period, or such commitments carried down into the reporting period
|||||||
|-|-|-|-|-|-|
||||Time of|||
||Commitment|||Period of||
|Commitment||Contents|making||Fulfillment|
||maker|||commitment||
||||commitment|||
|Share reformcommitment|CND Group|In order to enhance the shareholdingconfidence of tradable share holders, andencourage the core management and keypersonnel so that the interests of themanagement and all the shareholders cancoincide, CND made a commitment toentrust, through the general meeting ofthe Company, the Board of Directors ofthe Company to formulate and carry outan equity incentive plan at a propertiming after the completion of the sharedivision reform according to applicablelaws and regulations.|Apr. 2006|Standing|CND Group proposed in Mar. 2009 to theCompany <The Report on Formulating andCarrying out the Equity Inventive Plan ofShenzhen Chiwan Wharf Holdings Limited>,which was reviewed and approved in thegeneral meeting of the Company in May2009. The Board of Directors of the Companywas authorized to formulate and carry out anequity incentive plan at a proper timingaccording to applicable laws and regulations.In Jun. 2014, according to <The Methods(Trial) for State Holding Listed Companies toCarry out Equity Inventive> jointlypromulgated by the State-owned AssetsSupervision and Administration Commissionof the State Council and the Ministry ofFinance, as well as <The AdministrativeMethods (Trial) for Equity Incentive of ListedCompanies> promulgated by CSRC, theequity incentive plan could not besuccessfully formulated due to policy andregulation changes, as well as somerestrictions. Therefore, the Company hasdecided not to formulate and carry out theequity incentive plan for now. The Board ofDirectors will continue to follow and studyrelevant policies and regulations, and|

2014 Semi-annual Report
|||||||
|-|-|-|-|-|-|
||||||reconsider formulating and carrying out a newequity incentive plan according to the actualsituation of the Company and executing thedecision-making procedure.|
|Commitmentin theacquisitionreport or thereport onequitychanges||||Concerning||
|||||horizontal||
|||1. Commitments made by China||competition, it is||
|||Merchants Holdings (International) about||promised that the||
|||share custody;||horizontal||
|||2. Commitment made by China||competition issue||
||China|||||
|||Merchants Holdings (International) about||will be solved||
||Merchants|||||
|||guaranteeing the independency of the||through ways||
||Holdings||17 Sept.|||
|||Company;||such as asset|In the process of execution|
||(International)||2012|||
|||3. Commitment made by China||reorganization in||
||Company|||||
|||Merchants Holdings (International) about||the coming 3-5||
||Limited|||||
|||horizontal competition; and||years. And the||
|||4. Commitment made by China||other three||
|||Merchants Holdings (International) about||commitments are||
|||regulating related-party transactions||subject to the||
|||||share custody||
|||||period.||
|||1. Commitment made by Malai Storage||||
|||about guaranteeing the independency of||||
|||the Company;||Whenever Malai||
|||2. Commitment made by Malai Storage|27 Dec.|Storage holds the||
||Malai Storage||||In the process of execution|
|||about horizontal competition; and|2012|Company’s||
|||3. Commitment made by Malai Storage||shares||
|||about regulating related-party||||
|||transactions||||
|Othercommitmentsmade tominorityshareholders||CND Group irrevocably and||||
|||unconditionally agrees that if Chiwan||||
|||Wharf suffers from any loss, expense,||||
|||liability, demanded compensation or law||||
||||20 Mar.|||
|||suit due to any actual or potential||||
||||2001; 18|||
|||illegality or unenforceability in any land||||
||||Jun. 2003;|||
||CND Group|use agreement or relevant documents||Standing|In the process of execution|
||||29 Sept.|||
|||signed or to be signed by CND Group or||||
||||2004|||
|||other related problems, CND Group||||
|||promises to give full immunity to the||||
|||recipient party of the land use right and||||
|||its inheritor and the recipient person||||
|||regarding the aforesaid matters.||||
|||If the Company cannot pay interest on||||
|||time, pay principals upon maturity or is||||
|||involved in any violation, it shall at least||||
|||take the following measures:||||
|||||Whenever any of||
|||1. Not to distribute profit to shareholders;||||
||||26 Apr.|the corporate||
|||2. Suspend capital outlay projects such as||||
||||2012; 18|bonds of “11||
||The Company|significant outward investments or|||In the process of execution|
||||Oct. 2013|Chiwan 01” and||
|||mergers;||||
|||||“13 Chiwan 01”||
|||3. Reduce or stop salaries and bonuses||||
|||||exists||
|||for directors and senior management||||
|||staff; and||||
|||4. Not to remove the persons held chiefly||||
|||responsible.||||
|Executed in||||||
||Yes|||||
|time or not?||||||
|Specific||||||
|reason for||||||
|failing to||||||
|fulfill the||||||
||N/A|||||
|commitment||||||
|and plan for||||||
|the next step||||||
|(if any)||||||

2014 Semi-annual Report XI. Engagement and disengagement of the CPAs firm
Has the semi-annual financial report been audited?
□ Yes√ No
XII. Punishments and rectifications
No punishment or rectification in the reporting period.
XIII. Delisting risk due to violation of laws or regulations
No such risk in the reporting period.
XIV. Other significant events
In the reporting period, the Company disclosed the following significant events on Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn:
||||
|-|-|-|
|Announcement No.|Title|Date|
|2014-001|Announcement on the Business Volume in Dec. 2013|7 Jan. 2014|
|2014-002|Announcement on Resolutions Made at the 1st Special Session of the 7thBoard of Directors for 2014|29 Jan. 2014|
|2014-003|Announcement on Using Idle Funds Owned by the Company to AcquireBank Wealth Management Products|29 Jan. 2014|
|2014-004|Announcement on the Business Volume in Jan. 2014|12 Feb. 2014|
|2014-005|Progress Announcement on Fully-funded Subsidiary Absorption|14 Feb. 2014|
|2014-006|Announcement on the Fulfillment of Commitments Made by theCompany and Relevant Parties|15 Feb. 2014|
|2014-007|Announcement on the Completion of Business Registration Cancellationof Fully-funded Subsidiary Shenzhen Chiwan Terminal Co., Ltd.|28 Feb. 2014|
|2014-008|Announcement on the Business Volume in Feb. 2014|11 Mar. 2014|
|2014-009|Announcement on Vice GM Resignation|12 Mar. 2014|
|2014-010|Announcement on Resolutions Made at the 7th Session of the 7th Board ofDirectors|29 Mar. 2014|
|2014-011|Announcement on Resolutions Made at the 7th Session of the 7thSupervisory Committee|29 Mar. 2014|
|2014-012|Abstract of the 2013 Annual Report|29 Mar. 2014|
|2014-013|Announcement on the Expected Routine Related-party Transactions in2014|29 Mar. 2014|
|2014-014|Statement of the Nominator of Independent Directors for the 8th Board ofDirectors|29 Mar. 2014|
|2014-015|Statement of the Independent Director Candidates for the 8th Board ofDirectors|29 Mar. 2014|
|2014-016|Announcement on the Related-party Transaction Arising from Signing<The Financial Service Agreement> with China Development FinanceCo., Ltd.|29 Mar. 2014|
|2014-017|Announcement on the Business Volume in Mar. 2014|10 Apr. 2014|

2014 Semi-annual Report
||||
|-|-|-|
|2014-018|Announcement of Shenzhen Chiwan Wharf Holdings Limited on Paymentof Interest in 2014 for the 2011 Corporate Bonds (Phase I)|21 Apr. 2014|
|2014-019|Announcement on Resolutions Made at the 2nd Special Session of the 7thBoard of Directors for 2014|25 Apr. 2014|
|2014-020|Announcement on Resolutions Made at the 1st Special Session of the 7thSupervisory Committee for 2014|25 Apr. 2014|
|2014-021|Report on the First Quarter of 2014|25 Apr. 2014|
|2014-022|Notice on Convening the 2013 Annual Shareholders’ General Meeting|25 Apr. 2014|
|2014-023|Announcement on the Corporate Bonds Follow-up Rating Result|28 Apr. 2014|
|2014-024|Announcement on the Business Volume in Apr. 2014|8 May 2014|
|2014-025|Suggestive Announcement on Convening the 2013 Annual Shareholders’General Meeting|16 May 2014|
|2014-026|Announcement on Resolutions Made at the 2013 Annual Shareholders’General Meeting|23 May 2014|
|2014-027|Announcement on Resolutions Made at the 1st Session of the 8th Board ofDirectors|23 May 2014|
|2014-028|Announcement on Resolutions Made at the 1st Session of the 8thSupervisory Committee|23 May 2014|
|2014-029|Announcement on the Business Volume in May 2014|11 Jun. 2014|
|2014-030|Announcement on Maturity and Cashing of the First Phase of Short-termFinancing Bills for 2013|18 Jun. 2014|
|2014-031|Suggestive Announcement on Issue of the First Phase of Short-termFinancing Bills for 2014|23 Jun. 2014|
|2014-032|Announcement on Resolutions Made at the 1st Special Session of the 8thBoard of Directors for 2014|28 Jun. 2014|
|2014-033|Announcement on the Equity Incentive in the Share ReformCommitments|28 Jun. 2014|
|2014-034|Announcement on the Issue Result of the First Phase of Short-termFinancing Bills for 2014|30 Jun. 2014|

XV. Internal control progress
Pursuant to the “Internal Control Rules for Enterprises” and the mating guidelines, the Company has completed all the preparing work for the internal control project for 2014, with details as follows:
1. The Company updated the name list of the members of internal control task groups. The chairman of the board was the head of the internal control project, with divisional leaders and departmental leaders as the members for the internal control steering committee. At the Company level, important professionals of all functional departments were the members for the task group. At the level of a subsidiary, the task group was headed by the general manager of the subsidiary, with important professionals in the subsidiary as the members for the task group.
2. The work plan for internal control of 2014 was worked out.
3. The subjects and internal control processes included in the internal control improvement task for 2014 were determined. According to its own business characteristics and importance and based on
the internal control process improvement results of the previous two years, subjects included in the
internal control improvement task for 2014 were: the Company, Chiwan Container Terminal Co.,
Ltd., Shenzhen Chiwan Harbor Container Co. Ltd., Shenzhen Chiwan Terminal Co., Ltd., Shenzhen
Chiwan Trans-Grains Terminal Limited, Dongguan Chiwan Wharf Company Limited and
Dongguan Chiwan Terminal Company Limited. Internal control processes included in the internal
2014 Semi-annual Report control improvement and self-evaluation task for 2014 were: the organizational structure, development strategy, human resources, social responsibilities, corporate culture, capital operation, procurement, asset management, marketing,R&D, engineering projects, guarantees, outsourcing, financial reporting, overall budget, contract management, internal information transmission and the information system.
As reviewed and approved at the
7th
Session of the
7th
Board of Directors on 27 Mar. 2014 and later
|||
|-|-|
||Deloitte Touche Tohmatsu|
|Certified Public Accountants LLP was hired as the internal control auditor for the Company for||
|2014.||

In line with the schedule for the internal control improvement plan for 2014, the Company has finished all the preparation work. The internal control project is right on schedule, with no derivation or delay.
XVI. Other disclosed significant events
1. YoY changes of operating income, operating profit and net profit
Unit: RMB
|||||
|-|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|YoY +/-|
|Operating income|875,981,241.59|865,235,792.24|1.24%|
|Operating profit|338,134,354.99|431,778,589.42|-21.69%|
|Net profit (attributable to shareholders of theparent)|235,338,598.71|295,594,905.20|-20.38%|

No significant change occurred to the structures of main business lines and profit during the reporting period.
Operating income increased1.24% year on year because of the increased throughput of bulk cargo. Operating profit and net profit attributable to shareholders of the parent went down21.69% and20.38% respectively on a year-on-year basis mainly because operating costs increased due to the depreciation, labor, outsourcing and rent costs, and the financial expenses increased due to the increased average occupation amount of interest-borne loans and the loan interest rates, as well as the increased exchange loss on RMB depreciation.
2. Media Port Investments Limited (hereinafter referred to as “MPIL”) is jointly incorporated at the British Virgin Islands by Chiwan Wharf Holdings (HK) Ltd. (a wholly-owned subsidiary company of the Company hereinafter referred to as “CWHK”) and China Merchants Holdings (International) Company Limited as an investment controlling company. The said two companies hold its50% equity separately. MPIL holds60% equity of Shenzhen Mawan Wharf Co., Ltd., Shenzhen Mawan Port Service Co., Ltd. and Shenzhen Mawan Terminals Co., Ltd. in total. During the reporting period, MPIL gained net profit of RMB 44,175,992.24 through the above-mentioned three companies.
For the reporting period, investment income from MPIL was RMB 22,087,996.12, accounting for9.39% of the net profit attributable to shareholders of the parent.
3. China Overseas Harbor Affairs (Laizhou) Co., Ltd. is jointly run by the Company, China
Overseas Ports Holding Co., Ltd. and Shenzhen Zhonghai Port Logistics Co., Ltd. The Company
holds a stake of40% in it. For the reporting period, China Overseas Harbor Affairs (Laizhou) Co.,
Ltd. achieved net profit of RMB 47,273,065.80 attributable to shareholders of the parent.
2014 Semi-annual Report For the reporting period, the Investment income on China Overseas Harbor Affairs (Laizhou) Co., Ltd. stood at RMB 18,909,226.32, accounting for8.03% of the net profit attributable to sharehold- ers of the parent.
4. Financial status
Reasons for any significant year-on-year change of the financial status:
Unit: RMB
|||||
|-|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|YoY +/-|
|Financial expenses|37,195,762.94|12,749,188.04|191.75%|
|Profit or loss attributable to minorityshareholders|54,067,560.15|83,478,634.13|-35.23%|
|Cash payments to acquire or construct fixedassets, intangible assets and other long-termassets|77,945,431.65|166,004,516.64|-53.05%|
|Cash repayments of borrowings|936,590,000.00|527,460,000.00|77.57%|

 Reasons for any significant change:
Financial expenses increased because the average occupation amount of loans, the average loan interest rate and the exchange loss on RMB depreciation increased.
Profit or loss attributable to minority shareholders decreased because the TEU volume of containers of non-fully-funded subsidiaries decreased and the profits from that decreased accordingly.
Cash payments to acquire or construct fixed assets, intangible assets and other long-term assets decreased because the Machong Port project was basically finished and the investment in fixed assets decreased accordingly.
Cash repayments of borrowings increased because the due short-term financing bills of RMB 500 million were repaid while there was no such event in the same period of last year.
2014 Semi-annual Report Section VI. Change in Shares& Shareholders
I. Change in shares
Unit: Share
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Before the change||Increase/decrease (+, -)|||||After the change||
|||Number|Percentage|Newshares|Bonusshares|Capital|Other|Subtotal|Number|Percentage|
|||||||ization|||||
|||||||of|||||
|||||||capital|||||
|||||||reserve|||||
|I. Restricted shares||361,966|0.056%||||88,582|88,582|450,548|0.070%|
|1. Shares held by the State|||||||||||
|2. Share held by state-owned corporations|||||||||||
|3. Shares held by other domestic investors||361,966|0.056%||||88,582|88,582|450,548|0.070%|
||Among which: Shares held by domestic||||||||||
||corporations||||||||||
|Shares held by domestic natural persons||361,966|0.056%||||88,582|88,582|450,548|0.070%|
|4. Shares held by foreign investors|||||||||||
||Among which: Shares held by foreign||||||||||
||corporations||||||||||
|Shares held by foreign natural persons|||||||||||
|II. Non-restricted shares||644,401,764|99.944%||||-88,582|-88,582|644,313,182|99.930%|
|1. Renminbi ordinary shares||464,867,324|72.099%||||0|0|464,867,324|72.099%|
|2. Domestically listed foreign shares||179,534,440|27.845%||||-88,582|-88,582|179,445,858|27.831%|
|3. Overseas listed foreign shares|||||||||||
|4. Others|||||||||||
|III. Total shares||644,763,730|100%||||||644,763,730|100%|

2014 Semi-annual Report II. Total number of shareholders and their shareholdings
Unit: share
|||||||||
|-|-|-|-|-|-|-|-|
|Total number of|35,585 shareholders, including26,961 A-share holders and8,624 B-share holders||Total number of preferred share holders who|||||
|shareholders at the end|||had resumed their voting right at the end of|||0||
|of the reporting period|||the reporting period (if any)|||||
|Shareholdings of top ten shareholders (all being non-restricted share holders)||||||||
|||||Increase/decr|Number of non-|Shares|Type of|
|||Nature of|Percentage of|ease in the|restricted shares|pledged or|shares (A,|
|Name of shareholder||||||||
|||shareholder|shareholding|reporting|held at the|frozen|B, H or|
|||||period|period-end|(share)|other)|
|CHINA NANSHAN DEVELOPMENT(GROUP) INC.|||32.52%|0|209,687,067|||
|||||||0|A share|
|SHENZHEN MALAI STORAGE CO., LTD.|||25%|0|161,190,933|||
|||||||0|A share|
|KEEN FIELD ENTERPRISES LIMITED||Foreign-funded|8.58%|0|55,314,208|||
|||||||0|B share|
|CMBLSA RE FTIF TEMPLETON ASIANGRW FD GTI 5496||Foreign-funded|7.43%|0|47,914,954|||
|||||||Unknown|B share|
|GIC PRIVATE LIMITED||Foreign-funded|0.66%|4,275,390|4,275,390|||
|||||||Unknown|B share|
|EMPLOYEES PROVIDENT FUND||Foreign-funded|0.44%|-757,996|2,828,270|||
|||||||Unknown|B share|
|TEMPLETON ASIAN GROWTH FUND||Foreign-funded|0.41%|0|2,657,852|||
|||||||Unknown|B share|
|BBH A/C VANGUARD EMERGINGMARKETS STOCK INDEX FUND||Foreign-funded|0.40%|0|2,595,918|||
|||||||Unknown|B share|
|CMBNA/STICHTING PENS FND ABP||Foreign-funded|0.39%|0|2,504,856|||
|||||||Unknown|B share|
|KUMPULAN WANG PERSARAAN(DIPERBADANKAN)||Foreign-funded|0.37%|0|2,368,067|||
|||||||Unknown|B share|
||||CMHI was a shareholder of CND Group., Shenzhen Malai Storage|||||
|Explanation on associated relationship or/and persons|||Co., Ltd. was a wholly-funded subsidiary of CMHI, and KFEL was|||||
|acting in concert among the above-mentioned|||also a wholly-funded subsidiary of CMHI. Other than that, the|||||
|shareholders:|||Company does not know whether the other non-restricted|||||
||||shareholders are related parties or not.|||||

No shareholder of the Company carried out any agreed buy-back in the reporting period.
III. Change of the controlling shareholder or the actual controller
The controlling shareholder and the actual controller remained the same in the reporting period. IV. Any shareholding increase plan proposed or implemented by any shareholder or its act- in-concert party during the reporting period
To the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented any shareholding increase plan during the reporting period.
2014 Semi-annual Report Section VII. Directors, Supervisors& Senior Management Staff I. Shareholding changes of directors, supervisors and senior management staff
Unit: share
||||||||
|-|-|-|-|-|-|-|
|||||Shares|Shares||
||||Shares held|||Shares held|
|||Current/||increased in|decreased in||
|Name|Office title||at the period-|||at the|
|||former||the reporting|the reporting||
||||begin|||period-end|
|||||period|period||
|Zheng Shaoping|Chairman of the Board|Current|212,652|0|0|212,652|
|Wang Zhixian|Vice Chairman|Current|0|0|0|0|
|Zhang Rizhong|Director|Current|0|0|0|0|
|Deng Weidong|Director|Current|0|0|0|0|
|Li Yubin|Director|Current|0|0|0|0|
|Zhang Jianguo|Director|Current|74,282|0|0|74,282|
|Yin Kesheng|Independent director|Current|0|0|0|0|
|Su Qiyun|Independent director|Current|0|0|0|0|
|Li Changqing|Independent director|Current|0|0|0|0|
||Chairman of the||||||
|Yu Liming||Current|0|0|0|0|
||Supervisory Committee||||||
|Wen Ling|Supervisor|Current|0|0|0|0|
|Zhao Jianli|Supervisor|Current|0|0|0|0|
|Ni Keqin|Supervisor|Current|29,211|0|0|29,211|
|Zheng Linwei|Supervisor|Current|0|0|0|0|
|Zhao Qiang|GM|Current|15,103|0|0|15,103|
|Nie Qi|Vice GM|Current|85,409|0|0|85,409|
|Zhao Chaoxiong|Vice GM|Current|64,954|0|0|64,954|
|Wang Yongli|Vice GM|Current|4,985|0|0|4,985|
|Zhang Fang|CFO|Current|3,267|0|0|3,267|
|Bu Dan|Company secretary|Current|0|0|0|0|
|Li Wuzhou|Independent director|Former|0|0|0|0|
|Hao Zhujiang|Independent director|Former|0|0|0|0|
|Zhang Jianjun|Independent director|Former|0|0|0|0|
|Xiong Haiming|Vice GM, chief engineer|Former|83,147|0|0|83,147|
|Pan Ke|Vice GM|Former|||||
||||0|0|0|0|
|Total|--|--|573,010|0|0|573,010|

2014 Semi-annual Report II. Directors, supervisors and senior management staff who left their posts
||||||
|-|-|-|-|-|
|Name|Position|Type|Date|Reason|
|Yin Kesheng|Independent director|Elected|22 May 2014||
|Su Qiyun|Independent director|Elected|22 May 2014||
|Li Changqing|Independent director|Elected|22 May 2014||
|Zheng Linwei|Supervisor|Elected|22 May 2014||
|||Left upon expiration of the|||
|Li Wuzhou|Independent director||22 May 2014||
|||office term|||
|||Left upon expiration of the|||
|Hao Zhujiang|Independent director||22 May 2014||
|||office term|||
|||Left upon expiration of the|||
|Zhang Jianjun|Independent director||22 May 2014||
|||office term|||
|Zhao Chaoxiong|Vice GM|Re-positioned|22 May 2014||
|Nie Qi|Vice GM|Newly hired|22 May 2014||
|Wang Yongli|Vice GM|Newly hired|22 May 2014||
|||Left upon expiration of the|||
|Xiong Haiming|Vice GM, chief engineer||22 May 2014||
|||office term|||
|Pan Ke|Vice GM|Dismissed|7 Mar. 2014|Change of job|

2014 Semi-annual Report Section VIII. Financial Report
I. Audit report
The semi-annual financial report has not been audited by a CPAs firm.
II. Financial statements (see attached)
Section IX. Documents Available for Reference
I. 2014 Semi-Annual Report carrying the signature of Chairman of the Board;
II. 2014 Semi-Annual Financial Report carrying the signatures of theCompany’s Legal Representative, Chief Financial Officer and Financial Manager; and
III. Original copies of all documents and public notices thereof disclosed during the reporting period on Securities Times and Ta Kung Pao.
For and on behalf of the Board
Zheng Shaoping
Chairman
Shenzhen Chiwan Wharf Holdings Limited Dated 27 August 2014
SHENZHEN CHIWAN
WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Contents Pages
The Company and Consolidated balance sheets 1 - 2
The Company and Consolidated income statements 3 - 4
The Company and Consolidated cash flow statements 5 - 6
The Company and Consolidated statements of changes in
shareholders' equity 7 - 8
Notes to the financial statements 9- 105
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Consolidated Balance Sheet
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||LIABILITIES AND||||
|ASSETS|Notes|30 June 2014|31 December 2013|SHAREHOLDERS' EQUITY|Notes|30 June 2014|31 December 2013|
|Current Assets:||||Current Liabilities:||||
|Currency funds|(Ⅴ)1|782,831,116.07|715,539,516.48|Short-term borrowings|(Ⅴ)20|555,660,000.00|550,340,000.00|
|Notes receivable||5,406,070.00|200,000.00|Accounts payable|(Ⅴ)21|81,009,113.10|139,534,522.12|
|Accounts receivable|(Ⅴ)2|288,204,328.27|223,441,476.99|Advances|(Ⅴ)22|3,862,089.51|793,291.30|
|Prepayments|(Ⅴ)3|1,833,542.52|1,692,011.86|Employee benefits payable|(Ⅴ)23|50,211,167.73|72,523,316.28|
|Interest receivable||143,550.00|984,200.00|Taxes payable|(Ⅴ)24|44,454,427.26|61,282,690.48|
|Dividends receivable|(Ⅴ)4|-|3,334,985.50|Interest payable|(Ⅴ)25|24,980,280.71|36,813,185.09|
|Other receivables|(Ⅴ)5|28,010,352.28|12,579,679.85|Dividends payable|(Ⅴ)26|328,666,010.79|77,208,156.09|
|Inventories|(Ⅴ)6|21,865,211.17|21,253,356.18|Other payables|(Ⅴ)27|93,931,030.54|59,144,474.30|
||(Ⅴ)7|13,923,960.19|15,672,486.73|Non-current liabilities due within|(Ⅴ)28|4,661,924.52|4,676,624.27|
|Other current assets||||||||
|||||one year||||
|Total current assets||1,142,218,130.50|994,697,713.59|Other current liabilities|(Ⅴ)29|400,000,000.00|500,000,000.00|
|Non-current Assets:||||Total current liabilities||1,587,436,044.16|1,502,316,259.93|
|Available-for-sale financial|(Ⅴ)8|5,540,000.00|5,580,000.00|||||
|||||Non-current Liabilities:||||
|assets||||||||
|Long-term equity|(Ⅴ)9、10|1,601,837,934.31|1,574,597,485.03||(Ⅴ)30|994,303,561.66|993,510,137.00|
|||||Bonds payable||||
|investments||||||||
|Investment property|(Ⅴ)11|31,639,830.65|32,247,721.85|Special payables|(Ⅴ)31|74,082,730.45|72,917,084.77|
|Fixed assets|(Ⅴ)12|3,399,124,607.02|2,828,481,942.32|Deferred tax liabilities|(Ⅴ)17|1,105,000.00|1,115,000.00|
|Construction in progress|(Ⅴ)13|24,959,918.71|615,064,297.08|Other non-current liabilities|(Ⅴ)32|46,686,940.79|48,594,551.13|
|Intangible assets|(Ⅴ)14|1,041,336,398.87|986,041,335.51|Total non-current liabilities||1,116,178,232.90|1,116,136,772.90|
|Goodwill|(Ⅴ)15|10,858,898.17|10,858,898.17|TOTAL LIABILITIES||2,703,614,277.06|2,618,453,032.83|
|Long-term prepaid expenses|(Ⅴ)16|54,595,649.50|56,030,458.79|SHAREHOLDERS' EQUITY:||||
|Deferred tax assets|(Ⅴ)17|59,691,419.55|68,259,696.74|Share capital|(Ⅴ)33|644,763,730.00|644,763,730.00|
|Other non-current assets|(Ⅴ)18|98,623,826.09|174,669,665.62|Capital reserve|(Ⅴ)34|166,113,555.65|166,143,555.65|
|Total non-current assets||6,328,208,482.87|6,351,831,501.11|Special reserve|(Ⅴ)35|3,401,949.63|2,194,178.40|
|||||Surplus reserve|(Ⅴ)36|520,074,434.56|483,685,708.52|
|||||Unappropriated profit|(Ⅴ)37|2,612,263,807.67|2,664,771,789.70|
|||||Translation differences arising on||(13,712,146.44)|(13,712,569.50)|
|||||translation of financial statements||||
|||||denominated in foreign||||
|||||currencies||||
|||||Total shareholders' equity||3,932,905,331.07|3,947,846,392.77|
|||||attributable to equity holders of||||
|||||the parent||||
|||||Minority interests||833,907,005.24|780,229,789.10|
|||||TOTAL SHAREHOLDERS'||4,766,812,336.31|4,728,076,181.87|
|||||EQUITY:||||
|||7,470,426,613.37|7,346,529,214.70|TOTAL LIABILITIES AND||7,470,426,613.37|7,346,529,214.70|
|TOTAL ASSETS||||||||
|||||SHAREHOLDERS' EQUITY||||

The accompanying notes form an integral part of the financial statements.
The financial statements on pages 1 to 105 were signed by the following:
LegalRepresentative：Zheng Shaoping
Chief FinancialOfficer：Zhang Fang
Head of AccountingDepartment：Li Li
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Balance Sheet of the Company
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||LIABILITIES AND||||
|ASSETS|Notes|30 June 2014|31 December 2013|SHAREHOLDERS' EQUITY|Notes|30 June 2014|31 December 2013|
|Current Assets:||||Current Liabilities:||||
|Currency funds||611,353,388.32|465,329,241.75|Accounts payable||15,315,867.17|13,891,494.19|
|Notes receivable||500,000.00|200,000.00|Advances||1,931,260.79|5,338.70|
|Accounts receivable|(XII)1|21,623,655.43|18,217,533.28|Employee benefits payable||31,015,393.83|38,264,601.11|
|Prepayments||175,000.00|-|Taxes payable||3,822,832.35|503,982.43|
|Interest receivable||218,084.00|908,584.00|Interest payable||25,951,741.48|40,521,068.16|
|Dividends receivable||86,760,083.06|86,760,083.07|dividend payable||251,457,854.70|-|
|Other receivables|(XII)2|837,000,716.45|825,316,780.47|Other payables||662,502,543.45|391,049,559.49|
|Inventories||946,245.17|979,620.41|Other current liabilities||400,000,000.00|500,000,000.00|
|Total current assets||1,558,577,172.43|1,397,711,842.98|Total current liabilities||1,391,997,493.77|984,236,044.08|
|Non-currentAssets:||||Non-current Liabilities:||||
|Available-for-sale financial assets||5,540,000.00|5,580,000.00|Bonds payable||994,303,561.66|993,510,137.00|
|Long-term receivables||11,004,284.75|11,004,284.75|Deferred tax liabilities||1,105,000.00|1,115,000.00|
|Long-term equity investments|(XII)3|2,253,802,528.33|2,249,775,991.91|Total non-current liabilities||995,408,561.66|994,625,137.00|
|Investment property||24,148,620.75|24,628,337.91|TOTAL LIABILITIES||2,387,406,055.43|1,978,861,181.08|
|Fixed assets||128,189,623.67|133,867,730.53|SHAREHOLDERS' EQUITY||||
|Construction in progress||3,397,351.16|3,007,894.20|Share capital||644,763,730.00|644,763,730.00|
|Intangible assets||56,897,041.02|58,638,559.13|Capital reserve||153,325,827.18|153,355,827.18|
|Long-term prepaid expenses||5,310,935.45|5,750,647.61|Special reserve||(115,145.87)|120,437.30|
|Deferred tax assets||35,537,865.23|38,820,787.38|Surplus reserve||520,074,434.56|483,685,708.52|
|Total non-current assets||2,523,828,250.36|2,531,074,233.42|Unappropriated profit||376,950,521.49|667,999,192.32|
|||||TOTAL SHAREHOLDERS'||1,694,999,367.36|1,949,924,895.32|
|||||EQUITY||||
|||4,082,405,422.79|3,928,786,076.40|TOTAL LIABILITIES AND||4,082,405,422.79|3,928,786,076.40|
|TOTAL ASSETS||||||||
|||||SHAREHOLDERS' EQUITY||||

The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Consolidated Income Statement
Unit: RMB
|||||||
|-|-|-|-|-|-|
|ITEM||Notes|Jan.-Jun. 2014||Jan.-Jun. 2013|
|I. Revenue|||875,981,241.59|865,235,792.24||
|Including: Operating income|(V)38||875,981,241.59|865,235,792.24||
|less:Total operating costs|||462,666,123.14|390,222,276.89||
|Including: Operating costs|(V)38||462,666,123.14|390,222,276.89||
|Business taxes and surcharges|(V)39||3,795,898.11|2,702,573.92||
|General and administrative expenses|||77,865,679.19|73,855,832.02||
|Financial expenses|(V)40||37,195,762.94|12,749,188.04||
|Impairment losses of assets|(V)41||752,168.91|(50,374.00)||
|Add: Investment income|(V)42||44,428,745.69|46,022,294.05||
|Including: Income from investments in associates|(V)42||42,846,690.90|46,022,294.05||
|and joint ventures||||||
|II. Operating profit|||338,134,354.99|431,778,589.42||
|Add: Non-operating income|(V)43||4,605,897.52|1,656,132.51||
|Less: Non-operating expenses|(V)44||93,766.65|182,045.18||
|Including: Losses from disposal of non-current assets|(V)44||74,463.56|21,401.26||
|III. Gross profit|||342,646,485.86|433,252,676.75||
|Less: Income tax expenses|(V)45||53,240,327.00|54,179,137.41||
|IV. Net profit|||289,406,158.86|379,073,539.34||
|Net profit attributable to shareholders of the parent|||235,338,598.71|295,594,905.20||
|Profit or loss attributable to minority shareholders|||54,067,560.15|83,478,634.14||
|V. Earnings per share:|(V)48|||||
|(I) Basic earnings per share|||0.365|0.458||
|(II) Diluted earnings per share|||0.365|0.458||
|VI. Other comprehensive income|(V)49||(29,576.94)|54,926.00||
|VII. Total comprehensive income attributable to:|||289,376,581.92|379,128,465.34||
|Shareholders of the parent|||235,309,021.77|295,649,831.20||
|Minority shareholders|||54,067,560.15|83,478,634.14||

 The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Income Statement of the Company
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|ITEM||Notes||Jan.-Jun. 2014||Jan.-Jun. 2013|
|I. Revenue|(XII)4||109,434,020.21||57,073,983.07||
|Less: Operating costs|(XII)4||83,646,144.42||60,691,738.11||
|Business taxes and surcharges|||2,488,858.22||1,054,079.69||
|General and administrative expenses|||29,956,969.45||29,623,250.66||
|Financial expenses|||14,516,111.20||5,043,118.76||
|Impairment loss of assets|||-||161,950.98||
|Add: Investment income|(XII)5||21,214,832.83||17,735,893.39||
|Including: Income from investments in associates and|||19,632,778.04||17,735,893.39||
|joint ventures|||||||
|II. Operating profit|||40,769.75||(21,764,261.74)||
|Add: Non-operating income|||42,486.53||262,924.14||
|Less: Non-operating expenses|||2,424.22||-||
|Including: Losses from disposal of non-current assets|||2,374.22||-||
|III. Gross profit|||80,832.06||(21,501,337.60)||
|Less: Income tax expenses|||3,282,922.15||(9,789,307.75)||
|IV. Net profit|||(3,202,090.09)||(11,712,029.85)||
|V. Earnings per share:|||||||
|(I) Basic earnings per share|||N/A||N/A||
|(II) Diluted earnings per share|||N/A||N/A||
|VI. Other comprehensive income|||(30,000.00)||135,000.00||
|VII. Total comprehensive income|||(3,232,090.09)||(11,577,029.85)||

 The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Consolidated Cash Flow Statement
Unit: RMB
|||||
|-|-|-|-|
|ITEM|Notes|Jan.-Jun. 2014|Jan.-Jun. 2013|
|I. Cash Flows from Operating Activities:||||
|Cash receipts from sales of goods and rendering of services||829,743,109.26|827,242,214.74|
|Other cash receipts relating to operating activities|(V)50(1)|15,211,286.07|3,127,876.59|
|Sub-total of cash inflows||844,954,395.33|830,370,091.33|
|Cash payments for goods purchased and services received||292,125,044.81|226,856,623.43|
|Cash payments to and on behalf of employees||153,142,585.68|131,661,745.60|
|Payments of all types of taxes||79,061,745.05|65,385,352.38|
|Other cash payments relating to operating activities|(V)50(2)|37,991,810.04|48,649,225.54|
|Sub-total of cash outflows||562,321,185.58|472,552,946.95|
|Net Cash Flows from Operating Activities|(V)51(1)|282,633,209.75|357,817,144.38|
|II. Cash Flows from Investing Activities:||||
|Cash receipts from investments income||20,526,225.41|19,734,686.52|
|Net cash receipts from disposal of fixed assets, intangible assets||-|139,400.00|
|and other long-term assets||||
|Sub-total of cash inflows||20,526,225.41|19,874,086.52|
|Cash payments to acquire or construct fixed assets, intangible||77,945,431.65|166,004,516.64|
|assets and other long-term assets||||
|Sub-total of cash outflows||77,945,431.65|166,004,516.64|
|Net Cash Flows from Investing Activities||(57,419,206.24)|(146,130,430.12)|
|III. Cash Flows from Financing Activities:||||
|Cash receipts from borrowings||436,590,000.00|177,804,000.00|
|Cash receipts from issue of bonds||398,800,000.00|498,500,000.00|
|Sub-total of cash inflows||835,390,000.00|676,304,000.00|
|Cash repayments of borrowings||936,590,000.00|527,460,000.00|
|Cash payments for distribution of dividends or profit or interest||57,028,389.22|50,802,465.98|
|Including: Payments for distribution of dividends or profit to||-|-|
|minorities||||
|Other cash payments relating to financing activities|(V)50(3)|201,424.00|105,307.00|
|Sub-total of cash outflows||993,819,813.22|578,367,772.98|
|Net Cash Flows from Financing Activities||(158,429,813.22)|97,936,227.02|
|IV. Effect of Foreign Exchange Rate Changes on Cash and Cash||507,409.30|(1,057,948.80)|
|Equivalents||||
|V. Net Increase in Cash and Cash Equivalents||67,291,599.59|308,564,992.48|
|Add: Opening balance of Cash and Cash Equivalents|(V)51(2)|715,539,516.48|314,855,567.54|
|VI. Closing Balance of Cash and Cash Equivalents|(V)51(2)|782,831,116.07|623,420,560.02|

 The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Cash Flow Statement of the Company
Unit: RMB
|||||
|-|-|-|-|
|ITEM|Notes|Jan.-Jun. 2014|Jan.-Jun. 2013|
|I. Cash Flows from Operating Activities:||||
|Cash receipts from sales of goods and rendering of||111,374,977.13|53,257,693.60|
|services||||
|Other cash receipts relating to operating activities||505,306,823.76|184,863,649.79|
|Sub-total of cash inflows||616,681,800.89|238,121,343.39|
|Cash payments for goods purchased and services received||55,766,022.45|21,783,195.39|
|Cash payments to and on behalf of employees||49,469,616.44|39,423,951.71|
|Payments of all types of taxes||5,354,354.96|2,188,530.03|
|Other cash payments relating to operating activities||226,206,469.30|305,007,976.62|
|Sub-total of cash outflows||336,796,463.15|368,403,653.75|
|Net Cash Flows from Operating Activities|(XII)7|279,885,337.74|(130,282,310.36)|
|II. Cash Flows from Investing Activities:||||
|Cash receipts from investments income||17,188,296.41|19,734,686.52|
|Sub-total of cash inflows||17,188,296.41|19,734,686.52|
|Cash payments to acquire or construct fixed assets,||698,229.50|4,476,861.25|
|intangible assets and other long-term assets||||
|Cash payments to acquire investments||-|100,000,000.00|
|Sub-total of cash outflows||698,229.50|104,476,861.25|
|Net Cash Flows from Investing Activities||16,490,066.91|(84,742,174.73)|
|III. Cash Flows from Financing Activities:||||
|Cash receipts from issue of bonds||398,800,000.00|498,500,000.00|
|Sub-total of cash inflows||398,800,000.00|498,500,000.00|
|Cash repayments of borrowings||500,000,000.00|-|
|Cash payments for distribution of dividends or profit or||49,400,000.00|32,701,230.29|
|interest||||
|Other cash payments relating to financing activities||201,424.00|105,307.00|
|Sub-total of cash outflows||549,601,424.00|34,306,537.29|
|Net Cash Flows from Financing Activities||(150,801,424.00)|465,693,462.71|
|IV. Effect of Foreign Exchange Rate Changes on Cash||450,165.92|(261,059.45)|
|and Cash Equivalents||||
|V. Net Increase in Cash and Cash Equivalents||146,024,146.57|250,407,918.17|
|Add: Opening balance of Cash and Cash Equivalents|(XII)7|465,329,241.75|149,792,425.00|
|VI. Closing Balance of Cash and Cash Equivalents|(XII)7|611,353,388.32|400,200,343.17|

 The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Consolidated Statement of Changes inShareholders’ Equity
Unit: RMB
|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ITEM||Amount of Jan.-Jun.2014|||||||||||Amount of last year|||||||||||
|||Attributable to shareholders of the parent|||||||||Minorityinterests|Totalshareholders'equity|Attributable to shareholders of the parent|||||||||Minorityinterests|Totalshareholders'equity|
|||Share capital|Capital reserve||Special||Surplus||Unappropriated|Others|||Share capital|Capital reserve||Special||Surplus||Unappropriated|Others|||
||||||reserve||reserve||profit|||||||reserve||reserve||profit||||
|I. Closing balance of the preceding year||644,763,730.00|166,143,555.65|2,194,178.40||483,685,708.52||2,664,771,789.70||(13,712,569.50)|780,229,789.10|4,728,076,181.87|644,763,730.00|165,866,055.65|1,394,831.60||464,704,268.52||2,414,907,916.91||(13,604,717.50)|786,977,820.26|4,465,009,905.44|
||Add: Changes in accounting policies|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||Corrections of prior period errors|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||Others|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||II. Opening balance of the year|644,763,730.00|166,143,555.65|2,194,178.40||483,685,708.52||2,664,771,789.70||(13,712,569.50)|780,229,789.10|4,728,076,181.87|644,763,730.00|165,866,055.65|1,394,831.60||464,704,268.52||2,414,907,916.91||(13,604,717.50)|786,977,820.26|4,465,009,905.44|
||III. Changes for the year|-|(30,000.00)|1,207,771.23||36,388,726.04||(52,507,982.03)||423.06|53,677,216.14|38,736,154.44|-|277,500.00|799,346.80||18,981,440.00||249,863,872.79||(107,852.00)|(6,748,031.16)|263,066,276.43|
||(I) Net profit|-|-|-||-||235,338,598.71||-|54,067,560.15|289,406,158.86|-|-|-||-||502,894,547.79||-|139,585,366.96|642,479,914.75|
||(II) Other comprehensive income|-|(30,000.00)|-||-||-||423.06|-|(29,576.94)|-|277,500.00|-||-||-||(107,852.00)|-|169,648.00|
||Subtotal of (I) and (II)|-|(30,000.00)|-||-||235,338,598.71||423.06|54,067,560.15|289,376,581.92|-|277,500.00|-||-||502,894,547.79||(107,852.00)|139,585,366.96|642,649,562.75|
||(III) contributions and reduction in|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||capital|||||||||||||||||||||||
||1. Capital contribution from|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||shareholders|||||||||||||||||||||||
||2. Share-based payment recognised in|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||shareholders' equity|||||||||||||||||||||||
||3. Others|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||(IV) Profit distribution|-|-|-||36,388,726.04||(287,846,580.74)||-|-|(251,457,854.70)|-|-|-||18,981,440.00||(253,030,675.00)||-|(146,289,137.91)|(380,338,372.91)|
||1. Transfer to surplus reserve|-|-|||36,388,726.04||(36,388,726.04)||-|-|-|-|-|-||18,981,440.00||(18,981,440.00)||-|-|-|
||2. Transfer to general reserve|-|-|||-||-||-|-|-|-|-|-||-||-||-|-|-|
|3. Distributions to shareholders||-|-|-||-||(251,457,854.70)||-|-|(251,457,854.70)|-|-|-||-||(234,049,235.00)||-|(146,289,137.91)|(380,338,372.91)|
||4. Others|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||(V) Transfers within shareholders'|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||equity|||||||||||||||||||||||
||1. Capitalisation of capital reserve|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||2. Capitalisation of surplus reserve|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||3. Loss made up by surplus reserve|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||4. Others|-|-|-||-||-||-|-|-|-|-|-||-||-||-|-|-|
||(VI) Special reserve|-|-|1,207,771.23||-||-||-|(390,344.01)|817,427.22|-|-|799,346.80||-||-||-|(44,260.21)|755,086.59|
||1. Withdrawn in the period|-|-|7,531,245.24||-||-||-|2,088,679.98|9,619,925.22|-|-|14,841,719.02||-||-||-|4,847,619.51|19,689,338.53|
||2. Utilized in the period|-|-|(6,323,474.01)||-||-||-|(2,479,023.99)|(8,802,498.00)|-|-|(14,042,372.22)||-||-||-|(4,891,879.72)|(18,934,251.94)|
||(VII) Others|-|-|-||-||||-||-|-|-|-||-||-||-|-|-|
||IV. Closing balance of the year|644,763,730.00|166,113,555.65|3,401,949.63||520,074,434.56||2,612,263,807.67||(13,712,146.44)|833,907,005.24|4,766,812,336.31|644,763,730.00|166,143,555.65|2,194,178.40||483,685,708.52||2,664,771,789.70||(13,712,569.50)|780,229,789.10|4,728,076,181.87|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Statement of Changes in Shareholders' Equity of the Company
Unit: RMB
||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Amount of Jan.-Jun.2014||||||||||Amount of last year||||||||||
|||Amount of Jan.-Jun.2014||||||||||Amount of last year|||||||||
||Share capital||Capital reserve||Special|Surplus reserve||Unappropriated||Total shareholders'|Share capital||Capital reserve||Special|Surplus reserve||Unappropriated||Total shareholders'|
||||||reserve|||profit||equity|||||reserve|||profit||equity|
|I. Closing balance of the preceding year|644,763,730.00||153,355,827.18|120,437.30||483,685,708.52|667,999,192.32||1,949,924,895.32||644,763,730.00||153,078,327.18|240,348.59||464,704,268.52|557,142,606.93||1,819,929,281.22||
|Add: Changes in accounting policies|-||-|-||-|-||-||-||-|-||-|-||-||
|Corrections of prior period errors|-||-|-||-|-||-||-||-|-||-|-||-||
|Others|-||-|-||-|-||-||-||-|-||-|-||-||
|II. Opening balance of the year|644,763,730.00||153,355,827.18|120,437.30||483,685,708.52|667,999,192.32||1,949,924,895.32||644,763,730.00||153,078,327.18|240,348.59||464,704,268.52|557,142,606.93||1,819,929,281.22||
|III. Changes for the year|-||(30,000.00)|(235,583.17)||36,388,726.04|(291,048,670.83)||(254,925,527.96)||-||277,500.00|(119,911.29)||18,981,440.00|110,856,585.39||129,995,614.10||
|(I) Net profit|-||-|-||-|(3,202,090.09)||(3,202,090.09)||-||-|-||-|363,887,260.39||363,887,260.39||
|(II) Other comprehensive income|-||(30,000.00)|-||-|-||(30,000.00)||-||277,500.00|-||-|-||277,500.00||
|Subtotal of (I) and (II)|-||(30,000.00)|-||-|(3,202,090.09)||(3,232,090.09)||-||277,500.00|-||-|363,887,260.39||364,164,760.39||
|(III) Shareholders' contributions and|-||-|-||-|-||-||-||-|-||-|-||-||
|reduction in capital|||||||||||||||||||||
|1. Capital contribution from shareholders|-||-|-||-|-||-||-||-|-||-|-||-||
|2. Share-based payment recognised in|-||-|-||-|-||-||-||-|-||-|-||-||
|shareholders' equity|||||||||||||||||||||
|3. Others|-||-|-||-|-||-||-||-|-||-|-||-||
|(IV) Profit distribution|-||-|-||36,388,726.04|(287,846,580.74)||(251,457,854.70)||-||-|-||18,981,440.00|(253,030,675.00)||(234,049,235.00)||
|1. Transfer to surplus reserve|-||-|-||36,388,726.04|(36,388,726.04)||-||-||-|-||18,981,440.00|(18,981,440.00)||-||
|2. Transfer to general reserve|-||-|-||-|-||-||-||-|-||-|-||-||
|3. Distributions to shareholders|-||-|-||-|(251,457,854.70)||(251,457,854.70)||-||-|-||-|(234,049,235.00)||(234,049,235.00)||
|4. Others|-||-|-||-|-||-||-||-|-||-|-||-||
|(V) Transfers within shareholders' equity|-||-|-||-|-||-||-||-|-||-|-||-||
|1. Capitalisation of capital reserve|-||-|-||-|-||-||-||-|-||-|-||-||
|2. Capitalisation of surplus reserve|-||-|-||-|-||-||-||-|-||-|-||-||
|3. Loss made up by surplus reserve|-||-|-||-|-||-||-||-|-||-|-||-||
|4. Others|-||-|-||-|-||-||-||-|-||-|-||-||
|(VI) Special reserve|-||-|(235,583.17)||-|-||(235,583.17)||-||-|(119,911.29)||-|-||(119,911.29)||
|1. Withdrawn in the period|-||-|978,261.14||-|-||978,261.14||-||-|2,044,199.16||-|-||2,044,199.16||
|2. Utilized in the period|-||-|(1,213,844.31)||-|-||(1,213,844.31)||-||-|(2,164,110.45)||-|-||(2,164,110.45)||
|(VII) Others|-||-|-||-|-||-||-||-|-||-|-||-||
|IV. Closing balance of the year|644,763,730.00||153,325,827.18|(115,145.87)||520,074,434.56|376,950,521.49||1,694,999,367.36||644,763,730.00||153,355,827.18|120,437.30||483,685,708.52|667,999,192.32||1,949,924,895.32||

 The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(I) GENERAL
Shenzhen Chiwan Wharf Holdings Limited (the "Company") was a joint stock limited company reorganized from Shenzhen Chiwan Wharf Co., Ltd on 16 January 1993 as approved by General Office of Shenzhen Municipal People's Government (filed as Shen Fu Ban Fu[1993] No. 357). On 18 February 1993, under the approval released by People's Bank of China Shenzhen Branch (filed as Shen Ren Yin Fu Zi[1993] No.038), the Company issued, by public offering, the ordinary shares of 310,470,000 shares, including the domestic shares ("A shares") of 46,000,000 shares, and domestically listed foreign shares ("B shares") of 40,000,000 shares. Both shares were listed on Shenzhen Stock Exchange on 5 May 1993.
As of 31 December 2005, the total shares of the Company amounted to 644,763,730, after several times of capitalization of capital reserves and additional issuances during the period between 1993 and 2005.
On 26 May 2006, the stockholders' meeting of the Company approved the spilt-share reform under which a consideration comprising of every 1 A-share, cash of RMB11.5 and 8 put warrants was granted by China Nanshan Development (Group) Incorporation ("Nanshan Group"), the non- circulating shareholder of the Company, to each circulating shareholder holding 10 A-shares of the Company. After implementation of the split-share reform, the total number of A-shares remained unchanged with 370,802,900 shares held by Nanshan Group, occupying57.51% of the total shares.
On 13 July 2011, Nanshan Group obtained 75,100 shares of A shares in the secondary market; as a result, the number of A-shares held by Nanshan Group arrived at 370,878,000, occupying57.52% of the total shares.
On 17 September 2012, China Merchants Holdings International Company Limited (the "CMHI") signed a shareholding entrustment agreement with Nanshan Group, subject to which Nanshan Group entrusted CMHI with its holding in Shenzhen Chiwan Wharf of A-shares of 370,878,000 shares(57.52% of the total shares). Additionally, 55,314,200 B-shares indirectly held by CMHI via Jing Feng Co., Ltd, a subsidiary of CMHI, plus the voting rights obtained via entrustment, make up of66.10% of the voting right of the Company.
On 1 November 2012, the China Securities Regulatory Commission ("CSRC") approved the Announcement of China Merchants Holdings International Company Limited Concerning the Purchase Report of Shenzhen Chiwan Wharf Holding Limited and the Exemption of the Offer Obligation (filed as Zhen Jian Xu Ke[2012] No.1428), exempting CMHI from the offer obligation resulted from the fact of controlling Shenzhen Chiwan Wharf's 370,878,000 shares through stock custody.
On 27 December 2012, Nanshan Group signed an equity transfer agreement with Shenzhen Malai Warehouse Co., Ltd, a subsidiary of CMHI, subject to which Nanshan Group would transfer 161,190,933 A-shares of the Company to Shenzhen Malai Warehouse Co., Ltd.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(I) GENERAL - continued
On 6 March 2013, the Company received the Reply on Certain Issues Regarding Agreed Transfer of State-owned Shares of Shenzhen Chiwan Wharf Holdings Ltd. released by the State-owned Assets Supervision and Administration Commission (filed as Guo Zi Chan Quan[2013] No. 94), which approved Nanshan Group to transfer 161,190,933 A-shares of the Company to Shenzhen Malai Warehouse Co., Ltd. The transfer procedures of registration of the above shares have been completed on April 25th, 2013.
Therefore, the parent of the Company has been changed from Nanshan Group to CMHI since 1 November 2012, with the ultimate actual controller of the Company having always been China Merchants Group ("CMG").
The headquarters of the Company is located in Shenzhen Guangdong Province. The Company and its subsidiaries (collectively the "Group") are principally engaged in the provision of cargo handling, warehousing, land and sea transportation services, cargo packing, agency business and the other services.
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
1. Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises issued by the Ministry of Finance (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 of the financial statements. Upon being restructured into a stock company, the fixed assets and intangible assets initially contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department. Where assets are impaired, provisions for asset impairment are made in accordance with the relevant requirements.
2. Statement of compliance with the Accounting Standards for Business Enterprises
The financial statements of the Company have been prepared in accordance with the Accounting Standards for Business Enterprises, and present truly and completely, the Company's and consolidated financial position as of 30 June 2014, and the Company's and consolidated results of operations and cash flows for the six months ended 30 June 2014.
3. Accounting period
The Group has adopted the calendar year as its accounting year, e.g. from 1 January to 31 December.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES– continued
4. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company and its domestic subsidiaries operate. Therefore, the Company and its domestic subsidiaries choose RMB as their functional currency. The Company's foreign subsidiary chooses RMB or Hong Kong dollars ("HKD") as its functional currency on the basis of the primary economic environment in which it operates. The Group adopts RMB to prepare its financial statements. 5. The accounting treatment of business combinations involving or not involving enterprises under common control
Business combinations are classified into business combinations involving enterprises under common control and business combinations not involving enterprises under common control. 5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded by the combining entities at the date of the combination. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are incurred.
5.2 Business combinations not involving enterprises under common control and goodwill A business combination not involving enterprises under common control is a business combination in which all of the combining enterprises are not ultimately controlled by the same party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer, in exchange for control of the acquiree, the intermediary expenses (fees in respect of auditing, legal services, valuation and consultancy services, etc.) and other administrative expenses attributable to the business combination are recognized in profit or loss in the periods when they are incurred. Where a business combination not involving enterprises under common control is achieved in stages that involve multiple transactions, the cost of combination is the sum of the consideration paid at the acquisition date and the fair value of the equity in the acquiree held before the acquisition. The equity held in the acquiree 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 recognized as investment income, and the other comprehensive income relating to the
equity held in the acquiree before the acquisition date being transferred to investment income.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
5. The accounting treatment of business combinations involving or not involving enterprises under common control - continued
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 recognized as goodwill, which is measured at cost on initial recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment losses, and is presented separately in the consolidated financial statements. 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 groups, i.e., goodwill is reasonably allocated to the related assets groups or each of assets groups expected to benefit from the synergies of the combination. In testing an assets group with goodwill for impairment, an impairment loss is recognized if the recoverable amount of the assets group or sets of assets groups (including goodwill) is less than its carrying amount. The impairment loss is firstly allocated to reduce the carrying amount of any goodwill allocated to such assets group or sets of assets groups, and then to the other assets of the group pro-rata basis on the basis of the carrying amount of each asset (other than goodwill) in the group.
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.
The impairment of goodwill is recognized in profit or loss for the period in which it is incurred and will not be reversed in any subsequent period.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - 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 already disposed of by the Group, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
For subsidiaries acquired through a business combination involving enterprises not under common control, the operating results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate, 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 date when they first came under the common control of the ultimate controlling party are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the uniform accounting policies and accounting periods set out by the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the parent is treated as minority interests and presented as "minority interests" in the consolidated balance sheet under shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable to minority interests is presented as "minority interests" in the consolidated income statement under the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders' portion of the opening balance of shareholders' equity of the subsidiary, the excess amount is still allocated against minority interests.
Acquisition of minority interests or disposals of interests in a subsidiary that do not result in the loss of control over the subsidiary are accounted for as equity transactions. The carrying amounts of the parent's interests and minority interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the amount by which the minority interests are adjusted and the fair value of the consideration paid or received is adjusted to shareholders' equity
(capital reserve). If the capital reserve is not sufficient to absorb the difference, the excess are
adjusted against retained earnings.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Preparation of consolidated financial statements - continued
When the group loses control over a subsidiary due to disposal of equity investment or other reason, any retained interest is re-measured at its fair value at the date when control is lost. The difference between (i) the aggregate of the consideration received on disposal and the fair value of any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated from the acquisition date according to the original proportion of ownership interests is recognized as investment income in the period in which control is lost. Other comprehensive income associated with investment in the former subsidiary is reclassified to investment income in the period in which control is lost.
7. 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 8.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet date are recognized in profit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset during the capitalization period; (2) exchange differences related to hedging instruments for the purpose of hedging against foreign currency risks are accounted for using hedge accounting; (3) exchange differences arising from change in the carrying amounts other than the amortized cost of available-for-sale monetary items are recognized as other comprehensive income and included in capital reserve.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot exchange rates on the dates of the transactions; the amounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange rate on the date the fair value is determined. Difference between the re-translated functional currency amount and the original functional currency amount is treated as changes in fair value including changes of exchange rate and is recognized in profit and loss or as other comprehensive income included in capital reserve.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
8. Translation of transactions and financial statements denominated in foreign currencies - continued
8.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a foreign operation are translated from the foreign currency into RMB using the following method: assets and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the balance sheet date; shareholders' equity items except for retained earnings are translated at the spot exchange rates at the dates on which such items arose; all items in the income statement as well as items reflecting the amount of profit distributed are translated at the spot exchange rates on the dates of the transactions; the opening balance of retained earnings is the translated closing balance of the previous year's retained earnings; the closing balance of retained earnings is calculated and presented on the basis of each translated income statement and profit distribution item. The difference between the translated assets and the aggregate of liabilities and shareholders' equity items is separately presented, as the translation difference of financial statements denominated in foreign currencies, under the shareholders' equity in the balance sheet. Cash flows arising from transaction in a foreign currency and the cash flows of a foreign subsidiary are translated at the spot exchange rate on the date of the cash flows. The effect of exchange rate changes on cash and cash equivalents is regarded as a reconciling item and presented separately in the cash flow statement as "effect of exchange rate changes on cash and cash equivalents".
The opening balances and the comparative figures of previous year are presented at the translated amounts of previous year's financial statements.
On disposal of the Group's entire interest in a foreign operation, or disposal of certain interest or due to other reasons resulting in a loss of control over a foreign operation, the Group transfers the accumulated translation differences attributable to the shareholders' equity of the parent that relating to translation of the financial statements of that foreign operation, presented under shareholders' equity, to profit or loss in the period in which the disposal occurs.
In case of a disposal or other reason that does not result in the Group losing control over a foreign operation, the proportionate share of accumulated translation differences are re-attributed to non- controlling interests and are not recognized in profit and loss. For partial disposals of associates or joint ventures, the proportionate share of the accumulated translation differences is reclassified to profit or loss.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Financial instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. For financial assets and financial liabilities at fair value through profit or loss, transaction costs are immediately recognized in profit or loss. For other financial assets and financial liabilities, transaction costs are included in their initial recognized amounts.
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 amortized cost of a financial asset or a financial liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group estimates future cash flows considering all contractual terms of the financial asset or financial liability (without considering future credit losses), and also considers all fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts etc.
9.3 Classification, recognition and measurement of financial assets
On initial recognition, theGroup’s financial assets are classified into one of the four categories, including financial assets at fair value through profit or loss ("FVTPL"), held-to-maturity investments, loans and receivables, and available-for-sale financial assets. All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Financial instruments - continued
9.3 Classification, recognition and measurement of financial assets - continued
9.3.1 Financial Assets at Fair Value through Profit or Loss ("FVTPL")
Financial assets at fair value through profit or loss ("FVTPL") include financial assets held for trading and those designated as at fair value through profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (1) it has been acquired principally for the purpose of selling in the near term; or (2) on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or (3) it is a derivative that is not designated and effective as a hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (1) such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring assets or recognizing the gains or losses on them on different bases; or (2) the financial asset forms part of a group of financial assets or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value and any dividend or interest income earned on the financial assets are recognized in profit or loss.
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.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit or loss.
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 notes receivable, accounts receivable, interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest
method. Gain or loss arising from derecognition, impairment or amortization is recognized in
profit or loss.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Financial instruments - continued
9.3 Classification, recognition and measurement of financial assets - continued
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 recognized as other comprehensive income and included in the capital reserve, except that impairment losses and exchange differences related to amortized cost of financial assets are recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the available-for-sale financial assets are held, are recognized in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, and derivative financial assets that are linked to and must be settled by delivery of such unquoted equity instruments are measured at cost.
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.
Objective evidence that a financial asset is impaired includes the following observable events: (1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
(3) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial
reorganizations;
(5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Financial instruments - continued
9.4 Impairment of financial assets - continued
(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 of equity instruments operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortized cost
If financial assets carried at cost or amortized cost are impaired, the carrying amounts of the financial assets are reduced to the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset's original effective interest rate. The amount of reduction is recognized as an impairment loss in profit or loss. If, subsequent to the recognition of an impairment loss on financial assets carried at amortized cost, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is reversed. However, the reversal does not result in a carrying amount of the financial asset that exceeds what the amortized cost would have been had the impairment not been recognized at the date the impairment is reversed.
For a financial asset that is individually significant, the Group assesses the asset individually for impairment. For a financial asset that is not individually significant, the Group assesses the asset individually for impairment or includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset (whether significant or not), it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. Assets for which an impairment loss is individually recognized are not included in a collective assessment of impairment.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Financial instruments - continued
9.4 Impairment of financial assets - continued
- Impairment of available-for-sale financial assets
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value previously recognized directly in 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 amortization) and the current fair value, less any impairment loss on that financial asset previously recognized 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 recognized, the previously recognized impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale equity instruments is recognized as other comprehensive income and included in the capital reserve, while the amount of reversal of impairment loss on available-for-sale debt instruments is recognized in profit or loss.
- Impairment of financial assets measured at cost
If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the carrying amount of the financial asset is reduced to the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. The amount of reduction is recognized as an impairment loss in profit or loss. The impairment loss on such financial asset is not reversed once it is recognized.
9.5 Transfer of financial assets
The Group derecognizes a financial asset if one of the following conditions is satisfied: (1) the contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; or (3) although the financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Financial instruments - continued
9.5 Transfer of financial assets - continued
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and it retains control of the financial asset, it recognizes the financial asset to the extent of its continuing involvement in the transferred financial asset and recognizes an associated liability. The extent of the Group's continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the transferred asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference between (1) the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from the transfer and any cumulative gain or loss that has been recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the respective fair values of those parts. The difference between (1) the carrying amount allocated to the part derecognized; and (2) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other comprehensive income, is recognized in profit or loss.
9.6 Classification and recognition 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.
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.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Financial instruments - continued
9.6 Classification and recognition of financial liabilities - continued
9.6.1 Financial liabilities at fair value through profit or loss - continued
A financial liability may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (1) such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring liabilities or recognizing the gains or losses on them on different bases; or (2) the financial liability forms part of a group of financial liabilities or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis.
Financial liabilities at FVTPL are subsequently measured at fair value, and any gains or losses arising from changes in the fair value or any dividend or interest expense related with the financial liabilities are recognized in profit or loss.
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 are subsequently measured at amortized cost using the effective interest method, with gains or losses arising from derecognition or amortization recognized in profit or loss.
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 recognized less cumulative amortization recognized in accordance with the principles set out in Accounting Standard for Business Enterprises No. 14 - Revenue.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Financial instruments - continued
9.7 Derecognition of Financial Liabilities
The Group derecognizes 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 derecognizes a financial liability or a part of it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
9.8 Derivatives and embedded derivatives
Derivative financial instruments include forward exchange contracts, currency swaps, interest rate swaps and foreign exchange options, etc. Derivatives are initially measured at fair value at the date when the derivative contracts are entered into and are subsequently re-measured to fair value. The resulting gain or loss is recognized 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.
9.9 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized amounts, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset with the net amount presented in the balance sheet. Except for the circumstances above, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Financial instruments - continued
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, net of transaction costs, is added to shareholders' equity.
All types of distributions (excluding stock dividends) made by the Group to holders of equity instruments are deducted from shareholders' equity. The Group does not recognize any changes in the fair value of equity instruments.
10. Receivables
10.1 Receivables that are individually significant and for which bad debt provision is individually assessed
||||
|-|-|-|
||Basis or monetary criteria for|Top five balances of receivables are deemed asindividually significant receivables by the Group.|
||determining individually||
||significant receivables||
|Provision methods for receivablesthat are individually significantand for which bad debt provisionis 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 withsimilar credit risk characteristics and collectively assessesthem for impairment. Receivables for which animpairment loss is individually recognized are notincluded in a collective assessment of impairment.|

 10.2 Receivables for which bad debt provision is collectively assessed
||||
|-|-|-|
||Basis for determining a portfolio||
|Portfolio 1|Portfolio 1|The portfolio primarily includes amounts due from relatedparties of the Group, deposits and petty cash etc. The riskcharacteristics of such receivables are different from thoseof portfolio 2. The Group individually assesses receivablesin this portfolio and determines the bad debt provision.|
|Portfolio 2||This portfolio excludes amounts due from related parties ofthe Group, deposits and petty cash etc.The Group collectively assesses receivables in thisportfolio with aging analysis method, by taking historicalexperience into consideration.|
||Bad debt provision methods for a portfolio||
||Portfolio 1|Specific Identification Method|
||Portfolio 2|Aging Analysis Method|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Receivables - continued
10.2.1 Portfolios that use aging analysis for bad debt provision:
|||||||
|-|-|-|-|-|-|
||Aging analysis|||||
|Aging|||Provision proportion for||Provision proportion for|
||Aging||accounts receivable (%)||other receivables (%)|
||Within 90 days (inclusive)|0||0||
||More than 91 days but not exceeding|0-3||0-3||
||183 days|||||
||More than 184 days but not|5||5||
||exceeding year|||||
||More than 1 year but not exceeding 2|20||20||
||years|||||
||More than 2 years but not exceeding|50||50||
||3 years|||||
||More than 3 years|100||100||

10.3 Accounts receivable that are not individually significant but for which individual bad debt provision is individually assessed:
|||
|-|-|
|Reasons for making individualbad debt provision|As objective evidence indicates the Group is unable tocollect the receivables under original terms, the companymakes individual bad debt provision.|
|Bad debt provision methods|Under bad debt provision method, the provision isrecognized by the differences between the expected presentvalue of future cash flows and carrying value.|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Inventories - continued
11.3 Basis for determining net realizable value of inventories and provision methods for decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the cost of inventories is higher than the net realizable value, a provision for decline in value of inventories is made. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes. Net realizable value is determined on the basis of clear evidence obtained, after taking into consideration the purposes of inventories being held and effect of post balance sheet events.
Provision for decline in value of other inventories is made based on the excess of cost of inventory over its net realizable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realizable value of inventories is higher than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss for the period.
11.4 Inventory count system
The perpetual inventory system is maintained for stock system.
11.5 Amortization methods for low cost and short-lived consumable items and packaging materials
Packaging materials and low cost and short-lived consumable items are amortized using the immediate write-off method.
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 acquired is the cost of acquisition. The long-term equity investment acquired otherwise than through a business combination is initially measured at its cost.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
12. Long-term equity investments - continued
12.2 Subsequent measurement and recognition of profit or loss
12.2.1 A long-term equity investment accounted for using the cost method
For long-term equity investments over which the Group does not exercise joint control or significant influence and those without quoted prices in an active market and the 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 recognized in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
12.2.2 A 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 recognized in profit or loss for the period, and the cost of the long- term equity investment is adjusted accordingly.
Under the equity method, the Group recognizes its share of the net profit or loss of the investee for the period as investment income or loss for the period. The Group recognizes its share of the investee's net profit or loss based on the fair value of the investee's individually identifiable assets at the acquisition date after making appropriate adjustments to conform to the Group's accounting policies and accounting period. Unrealized profits or losses resulting from the Group's transactions with its associates and joint ventures are recognized as investment income or loss to the extent that those attributable to the Group's, equity interest are eliminated. However, unrealized losses resulting from the Group's transactions with its associates and joint ventures which represent impairment losses on the transferred assets are not eliminated. Changes in shareholder's equity of the investee other than net profit or loss are correspondingly adjusted to the carrying amount of the long-term equity investment, and recognized as other comprehensive income which is included in the capital reserve.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
12. Long-term equity investments - continued
12.2 Subsequent measurement and recognition of profit or loss - continued
12.2.2 A long-term equity investment accounted for using the equity method - continued The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of its net investment in the investee are reduced to zero. Except that if the Group has incurred obligations to assume additional losses, a provision is recognized according to the obligation expected, and recorded in the investment loss for the period. Where net profits are subsequently made by the investee, the Group resumes recognizing its share of those profits only after its share of the profits exceeds the share of losses previously not recognized.
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 recognized in profit or loss for the period. For a long-term equity investment accounted for using the equity method, the amount initially included in the shareholders' equity upon disposal is transferred to profit or loss for the period on a pro-rata basis.
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 investing enterprises or other parties that are currently exercisable or convertible shall be considered.
12.4 Impairment assessment and provision method 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 amounts are estimated. If such recoverable amount is less than its carrying amount, a provision for impairment losses in respect of the deficit is recognized in profit or loss for the period.
Once an impairment loss is recognized for a long-term equity investment, it will not be reversed in any subsequent period.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
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 recognized in profit or loss in the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment property, and adopts a depreciation or amortization policy for the investment property which is consistent with that for buildings or land use rights.
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 an impairment indication exists, the recoverable amounts are estimated. Recoverable amount is estimated on an item-by- item 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 such recoverable amount is less than its carrying amount, a provision for impairment losses in respect of the deficit is recognized in profit or loss for the period.
Once an impairment loss is recognized 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 recognizes the amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss for the period.
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 recognized only when it is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost. Upon being restructured into a stock company, the fixed assets initially contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Fixed assets - continued
14.1 Recognition criteria for fixed assets - continued
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable that economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
14.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method starting from the month subsequent to the one in which it is ready for intended use. The useful life, estimated net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
|Category|||Estimated||Estimated||Annual|
||Category||useful lives||residual value||depreciation rate|
||Port and wharf facilities|5 - 50 years||10%||1.8%-18%||
||Storage yards and|5 - 40 years||10%||2.25%-18%||
||buildings|||||||
||Mechanical equipments|5 - 15 years||10%||6%-18%||
||Motor vehicles, cargo|5 - 20 years||10%||4.5%-18%||
||ships and tugboats|||||||
||Other equipments|5 years||10%||18%||

 Estimated net residual value of a fixed asset is the estimated amount that the Group would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life. 14.3 The method of impairment test and provision for impairment losses of fixed assets The Group assesses at the balance sheet date whether there is any indication that the fixed assets 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 an item-by-item 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 recognized in profit or loss.
Once the impairment loss of such assets is recognized, it shall not be reversed in any subsequent
period.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - 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 account 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 derecognized. When a fixed asset is sold, transferred, retired or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and related taxes is recognized in profit or loss for the period.
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 capitalized before it is ready for intended use and other relevant costs. Construction in progress is not depreciated. Construction in progress is transferred to a fixed asset when it is ready for intended use. The Group assesses at the 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 an item-by-item 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 recognized in profit or loss.
Once the impairment loss of construction in progress is recognized, it shall not be reversed in any subsequent period.
16. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are capitalized when expenditures for such asset and borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted abnormally and when the interruption is for a continuous period of more than 3 months. Capitalization is suspended until the acquisition, construction or production of the asset is resumed. Other borrowing costs are recognized as an expense in the period in which they are incurred.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed under general-purpose borrowings, the Group determines the amount of interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings.
During the capitalization period, exchange differences related to a specific-purpose borrowing denominated in foreign currency are all capitalized. Exchange differences in connection with general-purpose borrowings are recognized in profit or loss in the period in which they are incurred.
17. Intangible assets
17.1 Intangible assets
Intangible assets include land use rights, coastal line use rights and computer software. An intangible asset is measured initially at cost. Upon being restructured into a stock company, the intangible assets initial contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department. When an intangible asset with a finite useful life is available for use, its original cost is amortized over its estimated useful life.
For an intangible asset with a finite useful life, the Group reviews the useful life and amortization method at the end of the period, and makes adjustments when necessary.
17.2 The method of impairment test and provision for impairment losses of intangible assets The Group assesses at the 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 recognized in profit or loss.
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 asset is recognized, it shall not be reversed in any subsequent
period.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
18. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over the current and subsequent periods (together of more than one year). Long-term prepaid expenses are amortized using the straight-line method over the expected periods in which benefits are derived.
19. Revenue
19.1 Revenue from rendering of services
The Group provides load and unload services, tugboat and trailer services, logistics agency and other related harbor services to customers. Revenue from rendering of services is recognized when (1) the amount of revenue can be measured reliably; (2) it is probable that the associated economic benefits will flow to the enterprise; and (3) the associated costs incurred or to be incurred can be measured reliably.
19.2 Rental income
The operating lease income of investment property should be recognized in the lease term at the price stated in contract or agreements using the straight-line method.
19.3 Interest income
Interest income is calculated based on the length of time for which the Group's cash is used by others and the applicable interest rate.
20. Government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at no consideration. A government grant is recognized only when the Group can comply with the conditions attached to the grant and the Group will receive the grant.
If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. If a government grant is in the form of a non-monetary asset, it is measured at fair value. If the fair value cannot be reliably determined, it is measured at a nominal amount. A government grant measured at a nominal amount is recognized immediately in profit or loss for the period.
A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss over the useful life of the related asset.
A government grant relating to income, if used to compensate the related expenses or losses to be incurred in subsequent periods, is determined as deferred income and recognised in profit or loss over the periods in which the related costs are recognized; if used to compensate the related expenses or losses already incurred, is recognised immediately in profit or loss for the period.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
20. Government grants - continued
For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred in subsequent periods, the grant is recognized as deferred income in profit or loss over the periods in which the related costs are recognized. If the grant is a compensation for related expenses or losses already incurred, the grant is recognized immediately in profit or loss for the period.
21. Deferred tax assets/ deferred tax liabilities
The income tax expenses include current income tax and deferred income tax.
21.1 Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
21.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognized as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognized using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets for deductible temporary differences are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized. However, for temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognized.
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be taxable profits against which to utilize
the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
21. Deferred tax assets/ deferred tax liabilities - continued
21.2 Deferred tax assets and deferred tax liabilities - continued
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates applicable in the period in which the asset is realized or the liability is settled according to tax laws.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except when they arise from transactions or events that are directly recognized in other comprehensive income or in equity, in which case they are recognized in other comprehensive income or in equity, and when they arise from business combinations, in which case they adjust the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it is no longer probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to be utilized. Any such reduction in amount is reversed when it becomes probable that sufficient taxable profits will be available.
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net basis.
22. 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. 22.1 The Group as lessee under operating leases
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for the period. Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are charged to profit or loss in the period in which they are actually incurred.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
22. Operating leases and finance leases - continued
22.2 The Group as lessor under operating leases
Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs with more than an insignificant amount are capitalized when incurred, and are recognized in profit or loss on the same basis as rental income over the lease term. Other initial direct costs with an insignificant amount are charged in profit or loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the period in which they actually arise.
23. Safety Production Cost
According to the Administrative Rules on Provision and Use of Enterprise Safety Production Cost jointly issued by the Ministry of Finance and the State Administration of Work Safety on 14 February 2012 (filed as Cai Qi[2012] No. 16), safety production cost set aside by the Group is directly included in the cost of relevant products or recognized in profit or loss for the period, as well as the special reserve. When safety production cost set aside is utilized, if the costs incurred can be categorized as expenditure, the costs incurred should be charged against the special reserve. If the costs set aside are used to build up fixed assets, the costs should be charged to construction in progress, and reclassified to fixed assets when the safety projects are ready for intended use. Meantime, expenditures in building up fixed assets are directly charged against the special reserve with the accumulated depreciation recognized at the same amount. Depreciation will not be made in the future period on such fixed assets.
24. Other significant accounting policies, accounting estimates, and preparation of financial statements
24.1 Employee benefits
In an accounting period in which an employee has rendered service to the Group, the Group recognizes 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 programmes, 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 for the period when they occur.
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 recognized in profit or loss for the period.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Critical judgments in applying accounting policies and key assumptions and
uncertainties in accounting estimates
In the application of accounting policies as set out above, the Company is required to make judgments, estimates and assumptions about the carrying amounts of items in the financial statements that cannot be measured accurately, due to the internal uncertainty of the operating activities. These judgments, estimates and assumptions are based on historical experiences of the Company's management as well as other factors that are considered to be relevant. Actual results may differ from these estimates.
The Company regularly reviews the judgments, estimates and assumptions on a going concern basis. Changes in accounting estimates which only affect the current period should be recognized in current period; changes which not only affect the current but the future periods should be recognized in current and future periods. At the balance sheet date, key assumptions and uncertainties that are likely to lead to significant adjustments to the book values of assets and liabilities in the future are:
25.1 Goodwill impairment
At 30 June 2014, the book value of goodwill is RMB10,858,898.17. For the purpose of impairment testing, the present value of the expected future cash flows of the assets group or portfolio including goodwill shall be calculated, and such expected future cash flows shall be estimated. Meantime, a pre-tax rate shall be determined that should reflect the time value of money on the current market and the specific asset risks.
25.2 Recognition of deferred tax
The Group calculates and makes provision for deferred income tax liabilities according to the profit distribution plan of subsidiaries, associates and the joint ventures subject to the related law. For retained earnings which are not allocated by the investment company, since the profits will be used to invest the company's daily operation and future development, no deferred income tax liabilities are recognized. If the actually distributed profits in the future are more or less than those expected, corresponding deferred tax liabilities will be recognized or reversed at the earlier of profits distribution date and the declaration date, in the profit and loss of the current period. Deferred tax assets are recognized based on the deductible temporary difference and the corresponding tax rate, to the extent that it has become probable that future taxable profit will be available for the deductible temporary difference. If in the future the actual taxable income does not coincide with the amount currently expected, the deferred tax assets resulting will be recognized or reversed in the period when actually incurred, in profit or loss.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(III) TAXES
1. Major taxes and tax rates
||||
|-|-|-|
|Taxes|Tax basis|Tax rate|
|Enterprise income tax|Taxable income|Note1|
|Value-add Tax|Load and unload income, tugboat income, trailer income,warehousing income and agency income|6% (Note 2)|
||Taxable income from vehicle maintenance and utilitiessupplies on ships in shore|13% and17%|
||Taxable income from sales of scraps|3%|
|Business tax|Rental income|5 %|
|Urban maintenance|VAT and Business tax paid|5% and 7 % (Note 3)|
|and construction tax|||
|Education surplus|VAT and Business tax paid|3%|
|Regional education|VAT and Business tax paid|2%|
|surplus|||

Note 1: The income tax rate applicable to the subsidiaries in mainland China for 2014 is25%(2013:25%).
The profit tax rate applicable to Chiwan Wharf Holdings (HK) Limited and Chiwan Shipping (HK) Company Limited, subsidiaries located in Hong Kong, is16.5%. On 21 February 2012, Machong Branch of National Taxation Bureau in Dongguan City approved that Dongguan Chiwan Wharf Co., Ltd (DGW), a subsidiary of the Group, was subjected to tax preference of "3-year exemption followed by 3-year half reduction" commencing from its first profit-making year. 2014 is its fifth profit-making year; hence, DGW has calculated its income tax at a rate of12.5% (2013:12.5%).
According to Doc.[2004] No.538 issued by the Third Branch of Local Taxation Bureau in Shenzhen, the profit derived from berth#12 of Chiwan Container Terminal Company Limited which has been under construction and put into operation by stages, is entitled to full exemption from income tax for five years commencing from its first profit making year and a50% exemption for the following five years when certain requirements are met. 2014 is the eleventh profit-making year of berth#12; hence, Chiwan Container Terminal Company Limited has calculated its income tax at a rate of25% (2013:12.5%).
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(II) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
1. Major taxes and tax rates - continued
According to Doc.[2007] No.40 issued by Shekou Local Taxation Bureau in Shenzhen, the profit derived from berth#13 of Chiwan Container Terminal Company Limited which has been under construction and put into operation by stages, is entitled to full exemption from income tax for five years commencing from its first profit making year and a50% exemption for the following five years when certain requirements are met. 2014 is the tenth profit-making year of berth#13; hence, Chiwan Container Terminal Company Limited has calculated its income tax at a rate of12.5% (2013:12.5%).
According to Doc.[2013] No.3 issued by Shekou Local Taxation Bureau In Shenzhen, the profits derived from berth#13A of Shenzhen Chiwan Harbour Container Company Limited, is entitled to full exemption from income tax for three years commencing from its first profit making year and50% exemption for the following three year when certain requirements are met. 2014 is the third profit-making year of berth#13A; hence, it has been exempted from enterprise income tax.
Note 2: The load and unload income, tugboat income and trailer income derived from 1 January to 31 October 2012 were subject to business tax rate of3%, and warehousing income, agency income and rental income were subject to business tax rate of5%. According to the Notice on Pilot Transforming Business Tax to Value Added Tax in Transportation and Certain Modern Service Sectors in 8 Provinces/Municipalities issued by the Ministry of Finance and State Administration of Taxation (filed as Cai Shui[2012] No.71), the above- mentioned income of the Group is subject to VAT rate of6% applicable in modern service industry instead of business tax, since the date of November
1st
2012.
According to the Notice on Taxable Services Subject to "VAT" Tax Rate of Zero and Exemption issued by the Ministry of Finance and State Administration of Taxation (filed as Cai Shui[2011] No.131), and approvals released by Shekou National Taxation Bureau in Shenzhen (filed as Jian Mian Bei[2012] No.0686, No.0693, No.0834 and .Jian Mian Bei[2013] No.0136 respectively), Container Terminal Company Limited, Shenzhen Chiwan Harbor Container Company Limited and Shenzhen Chiwan Shipping and Transportation Company Limited, the subsidiaries of the Company, are exempt from "VAT" when providing logistics support service (except for warehousing service). Note 3: The subsidiaries set up in Shenzhen are subject to an urban maintenance and construction tax rate of7%, and those set up in Dongguan are subject to an urban maintenance and construction tax rate of5%.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(IV) BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS
1. Information of subsidiaries
(1) Subsidiaries established or acquired through investments
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Registered|||Balance of other|||||Amount of the minority|
|||||Capital(in ten|||items substantively|Proportion||||interest used to absorb|
|||||thousand Yuan||Actual capital|constituting net|of|Proportion|||profit or loss|
||Type of the|Place of|Nature of|unless otherwise|Business|contribution at the|investments in the|ownership|of voting|Consolida|Minority|attributable to minority|
|Full name of the subsidiary|subsidiary|incorporation|business|stated)|scope|end of the period|subsidiary|Interest (%)|power (%)|ted or not|interests|interest|
||Limited liabilityCompany|Shenzhen, PRC|Logisticssupportservices|550.00|Shipping agency service|5,500,000.00|-|100.00|100.00|Yes|N/A|N/A|
|Shenzhen Chiwan International|||||||||||||
|Freight Agency Company Limited|||||||||||||
||Limited liabilityCompany|Shenzhen, PRC|Logisticssupportservices|5,000.00|Port services|50,000,000.00|-|100.00|100.00|Yes|N/A|N/A|
|Shenzhen Chiwan Terminal Company|||||||||||||
|Limited|||||||||||||
||Limited liabilityCompany|Shenzhen, PRC|Logisticssupportservices|4,500.00|Warehousing of grains|45,000,000.00|-|100.00|100.00|Yes|N/A|N/A|
|Shenzhen Chiwan Trains-Grains|||||||||||||
|Terminal Company Limited|||||||||||||
||Limited liabilityCompany|Hong Kong SAR,PRC|Investments|HKD1,000,000.00|Investment holding|1,070,000.00|11,004,285.00|100.00|100.00|Yes|N/A|N/A|
|Chiwan Wharf Holdings (H.K.) Limited|||||||||||||
||Limited liabilityCompany|Dongguan, PRC|Logisticssupportservices|45,000.00|Port services, warehousingand supporting services|382,500,000.00|-|85.00|85.00|Yes|88,586,880.35|-|
|Dongguan Chiwan Wharf Company|||||||||||||
|Limited|||||||||||||
||Limited liabilityCompany|Dongguan, PRC|Logisticssupportservices|40,000.00|Port services, warehousingand supporting services|400,000,000.00|-|100.00|100.00|Yes|N/A|N/A|
|Dongguan Chiwan Terminal|||||||||||||
|Company Limited(Note 1)|||||||||||||
||Limited liabilityCompany|British VirginIslands|Investments|USD 1.00|Investment holding|8.00|-|100.00|100.00|Yes|N/A|N/A|
|Grossalan Investments Limited|||||||||||||
|Hinwin Development Company|Limited liabilityCompany|Hong Kong SAR,PRC|Investments|HKD10,000.00|Investment holding|6,278,500.00|94,014,181.00|100.00|100.00|Yes|N/A|N/A|
|Limited|||||||||||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(IV) BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS
- continued
1. Information of subsidiaries - continued
(2) Subsidiaries acquired through a business combination involving enterprises under common control
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Balance of other||||||
|||||Registered|||items|Proportion||||Amount of the|
|||||Capital(in ten|||substantively|of||||minority interest used|
|||||thousand Yuan||Actual capital|constituting net|ownership|Proportion|||to absorb profit or|
||Type of the|Place of|Nature of|unless otherwise|Business|contribution at the|investments in the|interest|of voting|Consolidated||loss attributable to|
|Full name of the subsidiary|subsidiary|incorporation|business|stated)|scope|end of the period|subsidiary|(%)|power (%)|or not|Minority interests|minority interest|
||Limited liabilityCompany|Shenzhen, PRC|Logisticssupportservices|28,820.00|Container handling and otherport services|250,920,000.00|-|100.00|100.00|Yes|N/A|N/A|
|Shenzhen Chiwan Harbour|||||||||||||
|Container Company Limited|||||||||||||
||Limited liabilityCompany|Shenzhen, PRC|Logisticssupportservices|1,500.00|Container transportation,vehicle and port machinerymaintenance|7,000,000.00|-|100.00|100.00|Yes|N/A|N/A|
|Shenzhen Chiwan Transportation|||||||||||||
|Company Limited|||||||||||||
||Limited liabilityCompany|Shenzhen, PRC|Logisticssupportservices|USD 95,300,000.00|Container handling and otherport services|485,990,004.00|-|55.00|55.00|Yes|745,320,124.89|-|
|Chiwan Container Terminal|||||||||||||
|Company Limited|||||||||||||
||Limited liabilityCompany|Shenzhen, PRC|Logisticssupportservices|2,400.00|Cargo shipping|24,000,000.00|-|100.00|100.00|Yes|N/A|N/A|
|Shenzhen Chiwan Shipping and|||||||||||||
|Transportation Company Limited|||||||||||||
||Limited liabilityCompany|Hong Kong SAR,PRC|Logisticssupportservices|HKD 800,000.00|Shipping agency service|856,000.00|-|100.00|100.00|Yes|N/A|N/A|
|Chiwan Shipping (H.K.)|||||||||||||
|Company Limited|||||||||||||

Note1: Dongguan Chiwan Wharf Co., Ltd (DGW) is a subsidiary jointly owned by the Company holding25% of the equity capital and Chiwan Wharf Holdings (H.K.) Limited (a subsidiary of the Company) holding75% of the equity capital respectively. On March 20th, 2013, the Company added capital of RMB100, 000,000.00 to DGW. After the capital increase, the registered capital of DGW is changed to RMB 400,000,000.00 and the Company and Chiwan Wharf Holdings (H.K.) Limited holdDGW’s43.75% and56.25% equity capital respectively.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(IV) BUSINESS COMBINATIONS AND CONSOLIDATED FINANCIAL STATEMENTS - continued
2. No new entities that have been consolidated in the current period or entities that are excluded from consolidation in the current period
3. Number of subsidiaries is not decreased in the current period due to sales of equity interest resulting in loss of control
4. Exchange rate for translating major financial statement items of foreign operations Unit: RMB
||||||
|-|-|-|-|-|
|Currency||Balance Sheet||Income statement|
|HKD|0.7938||0.7897||

 (V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Currency Funds
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Exchange|||Exchange||
||Original currency||Amount in RMB|Original currency||Amount in RMB|
|||rate|||rate||
|Cash:|||||||
|RMB|12,446.21|1.0000|12,446.21|9,699.39|1.0000|9,699.39|
|USD|71.00|6.1528|436.85|71.00|6.0969|432.88|
|HKD|1,077.70|0.7938|855.48|703.79|0.7862|553.32|
|Subtotal|||13,738.54|||10,685.59|
|Bank deposit:|||||||
|RMB|576,749,668.37|1.0000|576,749,668.37|607,052,542.23|1.0000|607,052,542.23|
|USD|27,196,591.19|6.1528|167,335,186.26|12,027,862.01|6.0969|73,332,671.91|
|HKD|45,727,553.41|0.7938|36,298,531.90|42,130,496.98|0.7862|33,122,996.73|
|Subtotal|||780,383,386.53|||713,508,210.87|
|Other currency funds:|||||||
|(Note)|||||||
|RMB|2,433,832.24|1.0000|2,433,832.24|2,020,462.78|1.0000|2,020,462.78|
|USD|-|6.1528|-|-|6.0969|-|
|HKD|200.00|0.7938|158.76|200.00|0.7862|157.24|
|Subtotal|||2,433,991.00|||2,020,620.02|
|Total|||782,831,116.07|||715,539,516.48|

 Note: The balance of other currency funds is mainly the amount deposited in the securities settlement account of China Merchants Securities Co., Ltd.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 2. Accounts receivable
(1) Disclosure of accounts receivable by categories:
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Carrying amount||Bad debt provision||Carrying amount||Bad debt provision||
|Item|||||||||
|||Proporti||Proporti||Proportion||Proportion|
||Amount||Amount||Amount||Amount||
|||on (%)||on (%)||(%)||(%)|
|Accounts receivable that are individually|-|-|-|-|-|-|-|-|
|significant and for which bad debt provision|||||||||
|has been assessed individually(Note)|||||||||
|Accounts receivable for which bad debt provision has been assessed by portfolios|||||||||
|Portfolio 1|12,978,444.80|4.49|-|-|4,114,310.45|1.84|-|-|
|Portfolio 2|276,278,183.94|95.51|1,052,300.47|0.38|219,641,091.44|98.16|313,924.90|0.14|
|Subtotal of portfolios|289,256,628.74|100.00|1,052,300.47|0.36|223,755,401.89|100.00|313,924.90|0.14|
|Total|289,256,628.74|100.00|1,052,300.47|0.36|223,755,401.89|100.00|313,924.90|0.14|

 Note: Top five balances of accounts receivable are deemed as individually significant accounts receivable by the Group.
Aging analysis of accounts receivable is as follows:
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance||||||Opening balance||||||
||||Carrying||Proportion(%)||Bad debt|Book value|Carrying amount||Proporti||Bad debt|Book value|
||||amount||||provision||||on (%)||provision||
|W|ithin 1 year|285,836,943.21||98.82||321,438.57||285,515,504.65|222,734,678.59|99.54||99,249.04||222,635,429.55|
|Mb|ore than 1 year|3,263,269.53||1.13||652,653.91||2,610,615.62|985,619.30|0.44||197,123.86||788,495.44|
||ut not exceeding 2 years||||||||||||||
|Mb|ore than 2 years|156,416.00||0.05||78,208.00||78,208.00|35,104.00|0.02||17,552.00||17,552.00|
||ut not exceeding 3 years||||||||||||||
|M|ore than 3 years|-||-||-||-|-|-||-||-|
|T|otal|289,256,628.74||100.00||1,052,300.47||288,204,328.27|223,755,401.89|100.00||313,924.90||223,441,476.99|

 Accounts receivable portfolios for which bad debt provision has been assessed using the aging analysis approach:
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance|||||Opening balance||||||
||||Carrying||Proportio|Bad debtprovision|Book value|Carrying amount||Proporti||Bad debt|Book value|
||||amount||n (%)|||||on (%)||provision||
|W|ithin 1 year|272,858,498.41||98.76||321,438.57|272,537,059.85|218,620,368.14|99.54||99,249.04||218,521,119.10|
|Mb|ore than 1 year|3,263,269.53||1.18||652,653.91|2,610,615.62|985,619.30|0.45||197,123.86||788,495.44|
||ut not exceeding 2 years|||||||||||||
|Mb|ore than 2 years|156,416.00||0.06||78,208.00|78,208.00|35,104.00|0.01||17,552.00||17,552.00|
||ut not exceeding 3 years|||||||||||||
|M|ore than 3 years|-||-||-|-|-|-||-||-|
|T|otal|276,278,183.94||100.00||1,052,300.47|275,225,883.47|219,641,091.44|100||313,924.90||219,327,166.54|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 2. Accounts receivable - continued
(2) Top five companies with the largest balances of accounts receivable:
Unit: RMB
||||||
|-|-|-|-|-|
|||||Proportion of the|
||Relationship with|||amount to the total|
|Name of customer||Amount|Aging||
||the Company|||accounts receivable|
|||||(%)|
|Customer A|Customer|97,989,820.36|Within 1 year|34.00|
|Customer B|Customer|38,625,093.29|Within 1 year|13.40|
|Customer C|Customer|29,402,408.00|Within 1 year|10.20|
|Customer D|Customer|7,266,574.25|Within 1 year|2.52|
|Customer E|Customer|6,609,260.99|Within 1 year|2.29|
|Total||179,893,156.89||62.41|

 (3) As at 30 June 2014, no balances included in above accounts receivable are due from the shareholders of the Company who hold over5% voting right. Please see Note (VI) 6 for receivables from related parties.
3. Prepayments
(1) Aging analysis of prepayments is as follows:
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Item|||||
||Amount|Proportion (%)|Amount|Proportion (%)|
|Within 1 year|1,733,542.52|94.55|1,662,772.86|98.27|
|More than 1 year|100,000.00|5.45|29,239.00|1.73|
|but not exceeding 2 years|||||
|Total|1,833,542.52|100.00|1,692,011.86|100.00|

 (2) Disclosure of prepayments by categories:
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Insurance|999,593.80|1,356,653.64|
|Equipment|696,008.72|318,858.22|
|Consultancy and advisory|137,940.00|16,500.00|
|Decoration|-|-|
|Total|1,833,542.52|1,692,011.86|

 (3) As at 30 June 2014, no balances included in above prepayments are due from the shareholders of the Company who hold over5% voting right.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT– continued4、Dividends receivable
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Openingbalance|Increase|Decrease|Closing balance|Impairmentappeared or not|
||Dividends receivable of aging within one|3,334,985.50|15,606,241.62|18,941,227.12|-|No|
||year||||||
||Including: China Overseas Harbor Affairs|-|15,606,241.62|15,606,241.62|-|No|
||(Laizhou) Co., Ltd.||||||
||MediaPortInvestmentsLimited|3,334,985.50|-|3,334,985.50|-|No|
||Total|3,334,985.50|15,606,241.62|18,941,227.12|-||

5. Other receivables
(1) Disclosure of other receivables by categories:
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Carrying amount||Bad debt provision||Carrying amount||Bad debt provision||
|Category|||||||||
|||Proportion(%)||Proportion||Proportio||Proportion|
||Amount||Amount||Amount||Amount||
|||||(%)||n (%)||(%)|
|Other receivables that are individually|-|-|-|-|-|-|-|-|
|significant and for which bad debt provision|||||||||
|has been assessed individually|||||||||
|Other receivables for which bad debt provision has been assessed by portfolios|||||||||
|Portfolio 1|23,103,416.90|80.93|100,000.00|0.43|9,126,793.25|69.67|125,160.67|1.37|
|Portfolio 2|5,442,575.33|19.07|435,639.95|8.00|3,972,386.17|30.33|394,338.90|9.93|
|Subtotal of portfolios|28,545,992.23|100.00|535,639.95|1.88|13,099,179.42|100.00|519,499.57|3.97|
|Total|28,545,992.23|100.00|535,639.95|1.88|13,099,179.42|100.00|519,499.57|3.97|

 Note: Top five balances of other receivables are deemed as individually significant other receivables by the Group.
Aging analysis of other receivables is as follows:
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance||||||Opening balance||||||
||||Carrying|P|roportion|Bad debtprovision|Book value||Carrying|P|roportion||Bad debt|Book value|
||||amount||(%)||||amount||(%)||provision||
|W|ithin 1 year|22,000,311.11||77.07||11,073.99|21,989,237.12|6,296,028.40||48.06||10,508.79||6,285,519.61|
|Mb|ore than 1 year|1,690,331.70||5.92||41,109.36|1,649,222.34|1,107,449.23||8.45||373.51||1,107,075.72|
||ut not exceeding 2 years||||||||||||||
|Mb|ore than 2 years|1,594,855.20||5.59||-|1,594,855.20|2,914,884.39||22.25||-||2,914,884.39|
||ut not exceeding 3 years||||||||||||||
|M|ore than 3 years|3,260,494.22||11.42||483,456.60|2,777,037.62|2,780,817.40||21.24||508,617.27||2,272,200.13|
|T|otal|28,545,992.23||100.00||535,639.95|28,010,352.28|13,099,179.42||100.00||519,499.57||12,579,679.85|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 5. Other receivables - continued
(1) Disclosure of other receivables by categories - continued:
Other receivables portfolios for which bad debt provision has been assessed using the aging analysis
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance|||||Opening balance|||||
||||Carrying|Proportion (%)||Bad debt|Book value|Carryingamount|Proportion (%)||Bad debt|Book value|
||||amount|||provision|||||provision||
|W|ithin 1 year|4,853,571.94||89.18|11,073.99||4,842,497.95|3,587,062.01|90.30|10,508.79||3,576,553.22|
|Mb|ore than 1 year|205,546.79||3.78|41,109.36||164,437.43|1,867.56|0.05|373.51||1,494.05|
||ut not exceeding 2 years||||||||||||
|Mb|ore than 2 years|-||-|-||-|-|-|-||-|
||ut not exceeding 3 years||||||||||||
|M|ore than 3 years|383,456.60||7.04|383,456.60||-|383,456.60|9.65|383,456.60||-|
|T|otal|5,442,575.33||100.00|435,639.95||5,006,935.38|3,972,386.17|100.00|394,338.90||3,578,047.27|

 (2) Top five companies with the largest balances of other receivables:
Unit: RMB
||||||
|-|-|-|-|-|
|||||Proportion of the amount|
||Relationship with||||
|Name of company||Amount|Aging|to the total accounts|
||the Company||||
|||||receivable (%)|
|Shenzhen Mawan Wharf Co.,|Related party|7,235,626.90|Within 1 year|25.35|
|Ltd.("SMW")|||||
||Related party|2,717,494.10|More than 1 yearsbut not exceeding2 years|9.52|
|China Merchant Bonded Logistics Co.,|||||
|Ltd.("CMBL")|||||
|China Nanshan Development (Group)|Related party|1,269,537.37|Within 1 year|4.45|
|Incorporation ("Nanshan Group")|||||
|Shenzhen Southseas Grains Industries|Customer|1,066,345.00|Within 1 year|3.74|
|Ltd.|||||
|Guangzhou Taiheyang International|Customer|934,086.00|Within 1 year|3.27|
|Logistics Co., Ltd.|||||
|Total||13,223,089.37||46.33|

 (3) As at 30 June 2014, except for CND Group, no balances included in above other receivables are due from the shareholders of the Company who hold over5% voting right. Please see Note (VI) 6 for receivables from related parties.
6. Inventories
(1) Categories of inventories
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing Balance|||Opening Balance|||
|||Provision for||Carryingamount|Provision for||
|Item|Carrying||||||
|||decline in value|Book value||decline in value|Book value|
||amount||||||
|||of inventories|||of inventories||
|Spare parts|21,289,112.09|972,744.93|20,316,367.16|20,755,196.60|974,871.14|19,780,325.46|
|Fuel|1,548,844.01|-|1,548,844.01|1,417,014.73|-|1,417,014.73|
|Low value consumables|-|-|-|56,015.99|-|56,015.99|
|Total|22,837,956.10|972,744.93|21,865,211.17|22,228,227.32|974,871.14|21,253,356.18|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 6. Inventories - continued
(2) Movement of inventories is analyzed as follows:
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Spare parts|20,755,196.60|17,477,398.03|16,943,482.54|21,289,112.09|
|Fuel|1,417,014.73|19,625,037.24|19,493,207.96|1,548,844.01|
|Low value consumables|56,015.99|-|56,015.99|-|
|Total|22,228,227.32|37,102,435.27|36,492,706.49|22,837,956.10|

 (3) Provision for decline in value of inventories
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||Decrease|||
|Item|Opening balance|Increase|Reversal|Write-off|Closing balance|
|Spare parts|974,871.14|-|2,126.21|-|972,744.93|

7、Other current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Added-value tax to be certified|13,923,960.19|15,672,486.73|

 8. Available-for-sale financial assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Available-for-sale financial assets (Note)|5,540,000.00|5,580,000.00|

 Note: The available-for-sale financial assets held by the Company represent the fair value of the circulating shares of Jiang Su Ninghu Expressway Company Ltd at the end of the year. Available-for-sale financial assets:
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Classification of available-for-sale financial assets|||Available-for-||Available-for-|Others|Total|
||||sale equity||sale debt|||
||Classification of available-for-sale financial assets||instruments||instruments|||
||Cost of equity instruments/ Closing amortized cost of debt|1,120,000.00||-||-|1,120,000.00|
||instruments|||||||
||Closing fair value|5,540,000.00||-||-|5,540,000.00|
||Accumulated amount of changes in fair value included in the|4,420,000.00||-||-|4,420,000.00|
||other comprehensive income|||||||
||Provision amount for impairment|-||-||-|-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 9. Investments in joint ventures and associates
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Proportion|Proportion||||||
||of|of voting||||||
|||||Investee's total||||
||ownership|power in the|Investee's total assets at||Total net assets at the|Total operating income||
|Investee||||liabilities at the end of|||Net profit for the period|
||interests|investee|the end of the period||end of the period|for the period||
|||||the period||||
||held by the|held by the||||||
||Group (%)|Group (%)||||||
|I. Joint ventures||||||||
|China Overseas Harbor Affairs(Laizhou) Co., Ltd.(Note 1)|40.00|40.00|2,160,150,180.03|321,135,193.31|1,839,014,986.72|145,188,671.76|46,860,030.68|
|II. Associates||||||||
|China Merchants Holdings(International) InformationTechnology Company Ltd.|23.16|23.16|70,069,294.80|12,733,388.25|57,335,906.55|27,546,109.87|(7,209,465.93)|
|CMBL|40.00|40.00|2,106,388,578.71|1,421,071,369.53|685,317,209.18|95,202,616.31|5,629,583.70|
|Media Port InvestmentsLimited("MPIL")(Note 2)|50.00|50.00|HKD155,726,530.00|HKD691,930.00|HKD155,034,600.00|HKD 0.00|HKD(300.00)|
|China Development Finance Co.,Ltd.|20.00|20.00|2,431,569,954.93|1,919,367,730.72|512,202,224.22|29,483,450.48|6,336,736.45|

Note 1: The Company holds40% equity interests in China Overseas Harbor Affairs (Laizhou) Co., Ltd. (hereinafter "COHA (Laizhou)"). According to the investment agreement with shareholders of COHA (Laizhou) and its constitutions, significant matters such as operating decisions can be passed only when approved by directors of the Company and the other venturers. Therefore, COHA (Laizhou) is deemed to be under common control of Chiwan Wharf and the other shareholders; accordingly COHA (Laizhou) is accounted for as a joint venture.
Note 2: On 30 September 2002, China Merchants Holdings (International) Company Limited (the "CMHI", a listed company in Hong Kong) and Shenzhen South Oil (Group) Company Limited (the "SSOG") entered into an agreement called "Agreement on Cooperation and Development of Mawan Port" (the "Development Agreement") to incorporate three joint ventures, namely SMW, SMP and Shenzhen Mawan Terminals Co., Ltd. ("SMT") (together referred to as "Mawan Companies"), to construct and operate the berth0#,5#,6#,7# and8# in Mawan Port. According to the Development Agreement, CMHI and the Group will jointly set up Media Port Investments Limited (the "MPIL") with equal percentage of equity held respectively. MPIL then incorporates the abovementioned three joint ventures together with SSOG, and MPIL has60% equity in each of the three joint ventures.
The Company has50% equity of MPIL which is the investment holding company. Thus, MPIL is accounted for as an associate and the share of equity in its consolidated financial statements is based on proportion of shareholding since the Company holds30% voting rights in Mawan Company despite no director being sent to MPIL.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 10. Long-term equity investments
(1) Categories of Long-term equity investments
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening Balance|Increase|Decrease|Closing Balance|
|Joint ventures|833,537,997.04|18,909,226.32|15,606,241.62|836,840,981.74|
|Associates|727,150,287.99|23,937,464.58|-|751,087,752.57|
|Other long-term equity investments|17,037,500.00|-|-|17,037,500.00|
|Subtotal|1,577,725,785.03|42,846,690.90|15,606,241.62|1,604,966,234.31|
|Less: Provision for impairment of|3,128,300.00|-|-|3,128,300.00|
|long-term equity investments|||||
|Net amount|1,574,597,485.03|42,846,690.90|15,606,241.62|1,601,837,934.31|

 As at 30 June 2014, the long-term equity investments of the Group were not subject to restriction on disposal or remittance of return on investments.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
10. Long-term equity investments - continued
(2) Details of long-term equity investments are as follows:
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee||Accountingmethod|Investment cost|Opening balance|Changes(increase/decrease)|Closing balance|Proportion ofownershipinterests inthe investee(%)|Proportionof votingpower inthe investee(%)||Explanation of the|Provision forimpairmentlosses|Provisionforimpairment losses forthe period|Cash dividendsfor the period|
|||||||||||proportion of||||
|||||||||||ownership||||
|||||||||||interests being not||||
|||||||||||consistent with||||
|||||||||||the proportion of||||
|||||||||||voting power||||
||China Overseas Harbor Affairs|Equity method|749,655,300.00|833,537,997.04|3,302,984.70|836,840,981.74|40.00|40.00|N/A||-|-|15,606,241.62|
||(Laizhou) Co., Ltd|||||||||||||
||China Merchants Holdings|Equity method|1,875,000.00|13,482,832.15|(1,669,712.31)|11,813,119.84|23.16|23.16|N/A||-|-|-|
||(International) Information|||||||||||||
||Technology Company Ltd|||||||||||||
||CMBL|Equity method|280,000,000.00|306,866,224.24|2,251,833.48|309,118,057.72|40.00|40.00|N/A||-|-|-|
||MPIL|Equity method|139,932.00|305,696,092.45|22,087,996.12|327,784,088.57|50.00|50.00|N/A||-|-|-|
||China Development Finance Co., Ltd|Equity method|100,000,000.00|101,105,139.15|1,267,347.29|102,372,486.44|20.00|20.00|N/A||-|-|-|
||China Ocean Shipping Agency|Cost method|13,510,000.00|13,510,000.00|-|13,510,000.00|15.00|15.00|N/A||-|-|-|
||(Shenzhen) Company Limited|||||||||||||
||Shenzhen Petro-chemical Industry|Cost method|3,500,000.00|3,500,000.00|-|3,500,000.00|0.26|0.26|N/A||3,117,800.00|-|-|
||(Group) Company Limited.|||||||||||||
||Guangdong Guang Jian Group|Cost method|27,500.00|27,500.00|-|27,500.00|0.02|0.02|N/A||10,500.00|-|-|
||Company Limited|||||||||||||
||Total||1,148,707,732.00|1,577,725,785.03|27,240,449.28|1,604,966,234.31|-|-|-||3,128,300.00|-|15,606,241.62|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued (3) Long-term equity investments under equity method
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee||Investment cost|Opening balance||Changes|Income adjustment||||Otherequitychanges|Closing balance|
||||||in|||||||
||||||investment||Accrued profit||Dividends in the|||
||||||cost||and loss||year|||
||Joint ventures|||||||||||
||China Overseas Harbor|749,655,300.00|833,537,997.04|-||18,909,226.32||(15,606,241.62)||-|836,840,981.74|
||Affairs (Laizhou) Co., Ltd|||||||||||
||Associates|||||||||||
||China Merchants Holdings|1,875,000.00|13,482,832.15|-||(1,669,712.31)||-||-|11,813,119.84|
||(International) Information|||||||||||
||Technology Company Ltd|||||||||||
|CMBL||280,000,000.00|306,866,224.24|-||2,251,833.48||-||-|309,118,057.72|
|MPIL||139,932.00|305,696,092.45|-||22,087,996.12||-||-|327,784,088.57|
||China Development Finance|100,000,000.00|101,105,139.15|-||1,267,347.29||-||-|102,372,486.44|
||Co., Ltd|||||||||||
||Total|1,131,670,232.00|1,560,688,285.03|-||42,846,690.90||(15,606,241.62)||-|1,587,928,734.31|

 (4) Long-term equity investments under cost method
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item|Accounting method|Investment cost|Opening balance|Increase|Decrease|Closing balance|
|China Ocean Shipping Agency (Shenzhen)|Cost method|13,510,000.00|13,510,000.00|-|-|13,510,000.00|
|Company Limited|||||||
|Shenzhen Petro-chemical Industry (Group)|Cost method|3,500,000.00|3,500,000.00|-|-|3,500,000.00|
|Company Limited.|||||||
|Guangdong Guang Jian Group Company|Cost method|27,500.00|27,500.00|-|-|27,500.00|
|Limited|||||||
|Total||17,037,500.00|17,037,500.00|-|-|17,037,500.00|

 (5) Provision for impairment loss of long-term equity investments
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Shenzhen Petro-chemical Industry (Group)|3,117,800.00|-|-|3,117,800.00|
|Company Limited.|||||
|Guangdong Guang Jian Group Company|10,500.00|-|-|10,500.00|
|Limited|||||
|Total|3,128,300.00|-|-|3,128,300.00|

 The aforesaid brief financial information about the jointly-run and associated enterprises all comes from the statements prepared by their managements. When the Group measures the investments in these jointly-run and associated enterprises with the equity method, it makes some adjustments according to the accounting policies adopted by the Group.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 11. Investment properties
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item||Opening carrying amount||Increase||Decrease||Closing carrying amount|
|I. Total original carrying|65,028,138.00||-||-||65,028,138.00||
|amount|||||||||
|1. Buildings|33,519,173.00||-||-||33,519,173.00||
|2. Land use right|31,508,965.00||-||-||31,508,965.00||
|II. Total accumulated|32,780,416.15||607,891.20||-||33,388,307.35||
|depreciation and amortization|||||||||
|1. Buildings|17,894,078.51||301,008.54||-||18,195,087.05||
|2. Land use right|14,886,337.64||306,882.66||-||15,193,220.30||
|III. Total net book value of|32,247,721.85||-||-||31,639,830.65||
|investment property|||||||||
|1. Buildings|15,625,094.49||-||-||15,324,085.95||
|2. Land use right|16,622,627.36||-||-||16,315,744.70||
|IV. Total accumulated amount|-||-||-||-||
|of provision for impairment|||||||||
|losses of investment property|||||||||
|1. Buildings|-||-||-||-||
|2. Land use right|-||-||-||-||
|V. Total carrying value of|32,247,721.85||-||-||31,639,830.65||
|investment property|||||||||
|1. Buildings|15,625,094.49||-||-||15,324,085.95||
|2. Land use right|16,622,627.36||-||-||16,315,744.70||

 Note 1: Depreciation and amortization for the current period is RMB607,891.20.
Note 2: As at 30 June 2014, the Group has no investment property used as collateral.
Note 3: As at 30 June 2014, the Group has not obtained any ownership certificates of investment properties. Please see the Note (V) 14 for the reasons and management countermeasures.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 12. Fixed assets
(1) Fixed assets
Unit: RMB
||||||
|-|-|-|-|-|
|||||Closing carrying|
|Item|Opening carrying amount|Increase|Decrease||
|||||amount|
|I. Total original carrying amount|4,800,064,025.56|664,565,197.18|1,910,331.13|5,462,718,891.61|
|Including: Port and wharf facilities|1,530,733,395.56|428,336,658.14|-|1,959,070,053.70|
|Storage yards and|853,448,165.19|186,996,094.47|-|1,040,444,259.66|
|buildings|||||
|Mechanical equipments|2,001,098,758.62|43,696,636.55|1,210,850.30|2,043,584,544.87|
|Motor vehicles, cargo|297,925,117.66|4,275,925.89|454,022.04|301,747,021.51|
|ships and tugboats|||||
|Other equipments|116,858,588.53|1,259,882.13|245,458.79|117,873,011.87|
|II. Total accumulated depreciation|1,910,886,701.83|93,731,499.37|1,719,298.02|2,002,898,903.18|
|Including: Port and wharf facilities|349,619,791.83|16,559,201.34|-|366,178,993.17|
|Storage yards and|229,285,091.39|10,119,076.51|-|239,404,167.90|
|buildings|||||
|Mechanical equipments|1,104,000,203.47|56,847,427.59|1,089,765.26|1,159,757,865.80|
|Motor vehicles, cargo|146,087,221.22|6,727,711.11|58,809.06|152,756,123.27|
|ships and tugboats|||||
|Other equipments|81,894,393.92|3,478,082.82|570,723.70|84,801,753.04|
|III. Total net book value of fixed|2,889,177,323.73|-|-|3,459,819,988.43|
|assets|||||
|Including: Port and wharf facilities|1,181,113,603.73|-|-|1,592,891,060.53|
|Storage yards and|624,163,073.80|-|-|801,040,091.76|
|buildings|||||
|Mechanical equipments|897,098,555.15|-|-|883,826,679.07|
|Motor vehicles, cargo|151,837,896.44|-|-|148,990,898.24|
|ships and tugboats|||||
|Other equipments|34,964,194.61|-|-|33,071,258.83|
|IV. Total provision for impairment|60,695,381.41|-|-|60,695,381.41|
|losses|||||
|Including: Port and wharf facilities|7,537,511.93|-|-|7,537,511.93|
|Storage yards and|53,157,869.48|-|-|53,157,869.48|
|buildings|||||
|Mechanical equipments|-|-|-|-|
|Motor vehicles, cargo|-|-|-|-|
|ships and tugboats|||||
|Other equipments|-|-|-|-|
|V. Total carrying value of fixed|2,828,481,942.32|-|-|3,399,124,607.02|
|assets|||||
|Including: Port and wharf facilities|1,173,576,091.80|-|-|1,585,353,548.60|
|Storage yards and|571,005,204.32|-|-|747,882,222.28|
|buildings|||||
|Mechanical equipments|897,098,555.15|-|-|883,826,679.07|
|Motor vehicles, cargo|151,837,896.44|-|-|148,990,898.24|
|ships and tugboats|||||
|Other equipments|34,964,194.61|-|-|33,071,258.83|

 Note 1: New acquisition of fixed assets during the period amounted to RMB7,781,616.60 and
construction in progress transferred to fixed assets during the period was
RMB656,783,580.58, which composed the total increase in original carrying amount.
Disposal of fixed assets during the period amounted to RMB1,910,331.13, which
composed the total decrease in original carrying amount.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Note 2: Of the increase in accumulated depreciation, depreciation of RMB93,731,499.37 was made during the period. And decrease in accumulated depreciation during the period was composed of RMB1,719,298.02, resulted from disposal of fixed assets .
Note 3: As at 30 June 2014, there are no fixed assets that are used as collateral.
Note 4: As at 30 June 2014, ownership certificates for certain buildings of the Group with net book value of RMB296,643,505.84 (cost: RMB408,681,114.70元) have not yet been obtained. Among them, fixed assets with net book value of RMB32,793,342.20 (cost: RMB132,972,216.85) are located within the scope of Chiwan watershed. Please refer to Note (V) 14 for the reasons and management countermeasures; the ownership certificate for the remainder is under the process of application.
Note 5: In the current period, the Group reclassifies fixed assets due to management needs, and the depreciation years and the residual ratios remain the same.
(2) Other issues
Unit: RMB
|||||
|-|-|-|-|
|Item|Amount||Note|
|The original amounts of fixed assets fully depreciated but still|734,938,069.46|-||
|in use at 30 June 2014||||
|Closing original amount of temporary idle fixed assets|-|-||
|Fixed assets disposed or scrapped in the current year|-|-||
|(1)Original amount of fixed assets disposed or scrapped in the|1,910,331.13|-||
|current year||||
|(2)Net book value of fixed assets disposed or scrapped in the|191,033.11|-||
|current year||||
|(3)Gain or loss on disposal or scrap of fixed assets|(74,463.56)|-||

 13. Construction in progress
(1) Details of construction in progress are as follows:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing Balance|||Opening Balance|||
|Item||Provision for|||Provision for||
||Carrying amount||Book value|Carrying amount||Book value|
|||impairment|||impairment||
|Berth 4#-5#, Machong Port|6,919,802.25|-|6,919,802.25|585,124,261.30|-|585,124,261.30|
|Berth 2#-3#, Machong Port|2,145,299.16|-|2,145,299.16|25,397,336.78|-|25,397,336.78|
|Equipment for berth 12#-13#|4,579,896.20|-|4,579,896.20|-|-|-|
|Quayside container cranes|6,781,508.31|-|6,781,508.31|1,534,804.80|-|1,534,804.80|
|Others|4,533,412.79|-|4,533,412.79|3,007,894.20|-|3,007,894.20|
|Total|24,959,918.71|-|24,959,918.71|615,064,297.08|-|615,064,297.08|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2013
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
13. Construction in progress - continued
(2) Changes in significant construction in progress
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Proportion of||Amount of|Including:|Interest|||
||Budget|||Transfer to fixed|Transfer to|construction|Construction|accumulated|capitalised|capitalisation|||
|Item||Opening balance|Increase||||||||Capital source|Closing balance|
||amount|||assets|intangible assets|investment in|progress|capitalised|interest for the|rate for the|||
|||||||budget||interest|period|period (%)|||
||624,225,151.07|585,124,261.30|46,738,745.25|624,943,204.30|-|105%|100%|28,008,256.78|8,190,847.03|5.97%|Self-Fundingand loan|6,919,802.25|
|Berth 4#-5#, Machong Port|||||||||||||
||37,711,959.46|25,397,336.78|8,485,809.99|31,737,847.61|-|90%|90%|840,297.96|201,809.99|5.58%|Self-Fundingand loan|2,145,299.16|
|Berth 2#-3#, Machong Port|||||||||||||
|Equipment for berth 12#-13#|7,124,000.00|-|4,579,896.20|-|-|64%|64%|-|-|-|Self-Funding|4,579,896.20|
|Quayside container cranes|24,793,200.00|1,534,804.80|5,246,703.51|-|-|27%|27%|-|-|-|Self-Funding|6,781,508.31|
|Others|13,972,700.00|3,007,894.20|1,628,047.42|102,528.83|-|33%|33%|-|-|-|Self-Funding|4,533,412.79|
|Total|707,827,010.53|615,064,297.08|66,679,202.37|656,783,580.74|-|-|-|28,848,554.74|8,392,657.02|-|-|24,959,918.71|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 14. Intangible assets
Unit: RMB
||||||
|-|-|-|-|-|
||Opening carrying|||Closing carrying|
|Item||Increase|Decrease||
||amount|||amount|
|I. Total original carrying amount|1,563,273,497.65|77,131,732.21||1,640,405,229.86|
|Land use rights - prepaid under|1,296,536,073.00|-|-|1,296,536,073.00|
|lease (Note 2)|||||
|Land use rights - prepaid under|122,623,476.00|-|-|122,623,476.00|
|investment (Note 2)|||||
|Land use rights - purchased|40,678,811.43|76,504,552.74|-|117,183,364.17|
|Computer software|30,549,000.22|627,179.47|-|31,176,179.69|
|Coastal line use rights|72,886,137.00|-|-|72,886,137.00|
|II. Total accumulated amortization|577,232,162.14|21,836,668.85|-|599,068,830.99|
|Land use rights - prepaid under|494,248,937.52|17,392,411.03|-|511,641,348.55|
|lease (Note 2)|||||
|Land use rights - prepaid under|52,523,722.22|388,794.74|-|52,912,516.96|
|investment (Note 2)|||||
|Land use rights - purchased|2,936,754.12|2,575,114.27|-|5,511,868.39|
|Computer software|21,130,931.48|707,808.61|-|21,838,740.09|
|Coastal line use rights|6,391,816.80|772,540.20|-|7,164,357.00|
|III. Total net book value of|986,041,335.51|-|-|1,041,336,398.87|
|intangible assets|||||
|Land use rights - prepaid under|802,287,135.48|-|-|784,894,724.45|
|lease (Note 2)|||||
|Land use rights - prepaid under|70,099,753.78|-|-|69,710,959.04|
|investment (Note 2)|||||
|Land use rights - purchased|37,742,057.31|-|-|111,671,495.78|
|Computer software|9,418,068.74|-|-|9,337,439.60|
|Coastal line use rights|66,494,320.20|-|-|65,721,780.00|
|IV. Total provision for impairment|-|-|-|-|
|Land use rights - prepaid under|-|-|-|-|
|lease|||||
|Land use rights - prepaid under|-|-|-|-|
|investment|||||
|Land use rights - purchased|-|-|-|-|
|Computer software|-|-|-|-|
|Coastal line use rights|-|-|-|-|
|V. Total carrying value of|986,041,335.51|-|-|1,041,336,398.87|
|intangible assets|||||
|Land use rights - prepaid under|802,287,135.48|-|-|784,894,724.45|
|lease (Note 2)|||||
|Land use rights - prepaid under|70,099,753.78|-|-|69,710,959.04|
|investment (Note 2)|||||
|Land use rights - purchased|37,742,057.31|-|-|111,671,495.78|
|Computer software|9,418,068.74|-|-|9,337,439.60|
|Coastal line use rights|66,494,320.20|-|-|65,721,780.00|

Note 1: Amortization for the current period is RMB21,836,668.85.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 14. Intangible assets - continued
Note 2: The Group has obtained the land use right from Nanshan Group in connection with several plots of land with a total area of 1,049,946.00 square meters within Chiwan port for a use term ranging between 20 - 50 years with original amount of RMB1,400,288,984.00. The lands are located within the scope of Chiwan watershed, comprising of a land of 2.2 square kilometers injected by Shenzhen Investment Holding Corporation, the parent of Nanshan Group, and a land arising from marine reclamation by Nanshan Group.
An area of 270,692 sq. meters (RMB122,623,476.00) was injected by Nanshan Group as capital contribution at the moment of corporate restructuring. The rest land use right was obtained from Nanshan Group by long-term leasing.
Until now, no official certificates for above lands were obtained by Nanshan Group. Correspondingly, the buildings located on such lands have not obtained relevant real estate certificates.
On 20 March 2001, 18 June 2003 and 29 September 2004, Nanshan Group committed on all the land use right obtained by the Group from it. Per the commitment, Nanshan Group has no right to withdraw and will agree in any condition that, when the Group suffers loss, bears expense and liability, is claimed for compensation or runs into lawsuit, caused by any actually or potentially illegal and unconductable issues generated by land use right agreements and their relevant documents, signed or will be signed by Nanshan Group, Nanshan group will guarantee that the acquiring party and its inheritor of those land use right will be fully exempted from above issues mentioned. Based on the situations above, directors of the Company believe there is no significant impairment risk to be caused by the absence of land use right certificate and no significant contingency exists.
The management is aware that Nanshan Group is active in process of resolving the historical problem with relevant government department; however, it cannot predict the exact time of obtaining legal certificates of land and relevant real estate certificates. 15. Goodwill
Unit: RMB
||||||
|-|-|-|-|-|
|Investee|Opening balance|Increase|Decrease|Closing balance|
|Chiwan Container Terminal|10,858,898.17|-|-|10,858,898.17|
|Company Limited|||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued Note: The goodwill arose from the acquisition of the minority interests in Chiwan Container Terminal Company Limited, being the difference of the additional cost of investment and the Group's share of the fair value of the identifiable net assets in Chiwan Container Terminal Company Limited. Based on past years operation relating to these assets groups and the forecast of the Company, the management holds the opinion that these is no need to allocate impairment to goodwill arising from Chiwan Container Terminal Company Limited investment.
16. Long-term prepaid expenses
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Residual|
||Opening|||Other|Closing|||
|Item||Increase|Amortization|||Original Cost|useful|
||balance|||reductions|balance|||
||||||||period|
|Construction expenditure of|53,492,571.74|-|922,285.68|-|52,570,286.16|64,560,000.00|28 years|
|Tonggu sea-route (Note 1)||||||||
|Golf membership|1,452,729.93|-|111,558.79|-|1,341,171.14|2,443,549.00|1-8 years|
|Building decoration|1,085,157.12|-|400,964.82|-|684,192.20|2,214,040.47|1-4 years|
|Total|56,030,458.79|-|1,434,809.29|-|54,595,649.50|75,605,099.47|-|

 Note 1: In 2007, Shenzhen municipal government commenced the construction work of the public sea route connecting Tonggu sea route, Shekou port area, Chiwan port area, Mawan port area, Qianhaiwan port area and Dachanwan port area ("Tonggu Sea Route"). As required by a decision by the government,60% of construction expenditure would be allocated to the port operators while the remaining40% born by the government. The port operators in Western Shenzhen port areas were allocated35% of the total expenditure, and subsequently agreed the portion to each operator, taking into account the factors including the function, waterfront length, berthing ship of each porter etc. The total expenditure of RMB64,560,000 was allocated to the Group and accounted for as long- term prepaid expenses, being amortized on a straight-line basis over 35 years which is the expected useful live of Tonggu Sea Route starting from 2008 when the Tonggu Sea Route is ready for use.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 17. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets or deferred tax liabilities that are presented at the net amount after offset and correspondingly deductible or taxable temporary differences
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item|||Closing balance of|Closing balance ofdeductible or taxabletemporary differencesafter offsetting||Opening balance||Opening balance of|
||||deferred tax assets|||of deferred tax||deductible or|
||||or deferred tax|||assets or deferred||taxable temporary|
||||liabilities after|||tax liabilities after||differences after|
||||offsetting|||offsetting||offsetting|
||Deferred tax assets:||||||||
||Provision for|15,398,018.41||62,469,584.34|15,398,018.41||62,469,584.34||
||impairment losses||||||||
||of assets||||||||
||Depreciation of|8,271,984.79||33,145,080.33|8,271,984.79||33,145,080.33||
||fixed assets and||||||||
||amortization of||||||||
||intangible assets||||||||
||Deductible losses|25,606,725.99||102,426,903.95|25,606,725.99||102,426,903.95||
||Accrued expenses|5,318,395.46||21,246,715.24|13,886,672.61||61,791,958.82||
||Pre-operational|1,263,893.50||6,066,688.80|1,263,893.50||6,066,688.80||
||expenses||||||||
||Others|3,832,401.40||15,717,641.10|3,832,401.44||15,717,641.10||
||Subtotal|59,691,419.55||241,072,613.76|68,259,696.74||281,617,857.34||
||Deferred tax||||||||
||liabilities:||||||||
||Change in fair|1,105,000.00||4,420,000.00|1,115,000.00||4,460,000.00||
||value of available-||||||||
||for-sale financial||||||||
||assets recorded in||||||||
||capital surplus||||||||
||Subtotal|1,105,000.00||4,420,000.00|1,115,000.00||4,460,000.00||

 (2) Details of offsetting deferred tax assets and deferred tax liabilities
Unit: RMB
||||
|-|-|-|
|Item||The amount of offset|
|Current period:|||
|Depreciation of fixed assets and amortization of intangible assets|2,462,830.43||
|Prior period:|||
|Depreciation of fixed assets and amortization of intangible assets|2,462,830.43||

 (3) Details of unrecognized deferred tax assets
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Deductible temporary differences|3,914,782.42||3,162,393.02||
|Deductible losses|130,512,852.24||94,303,813.38||
|Total|134,427,634.66||97,466,206.40||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(4) Deductible losses for which no deferred tax assets are recognized will expire in the following years
Unit: RMB
|||||
|-|-|-|-|
|Year|Closing balance|Opening balance|Note|
|2014|-|379,817.00||
|2015|-|4,707,158.00||
|2016|-|3,403,289.00||
|2017|-|3,832,744.00||
|2018|76,221,172.16|81,980,805.38||
|2019|54,291,680.08|-||
|Total|130,512,852.24|94,303,813.38||

18. Other non-current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Coast Line Use Right (Note)|36,375,000.00|36,375,000.00|
|Land Use Right (Note)|61,793,426.09|138,294,665.62|
|Prepayments for equipment|455,400.00|-|
|Total|98,623,826.09|174,669,665.62|

 Note : The Company entered into Frame Contract for Cooperation on Usage of Quay and Land for Berth2#-5# at Machong Port in Dongguan and its supplements with Dongguan Humen Port Administration Commission to purchase a land with an area of 800,000 square meters and area of water with depth of 700 meters from the front of terminal, together with the use right of 1,200 meters coast line, for berth2# to berth5# in Dongguan Machong Port at a consideration of RMB260,000,000, respectively in March 2006, October 2006 and November 2007. As the Group has not obtained the land use right certificate and coast line use right certificate, the relevant payments were therefore recognized as other non-current assets.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 19. Details of provision for impairment losses of assets
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item||Opening carryingamount|Increase||Decrease|||Foreign|Closingcarryingamount|
|||||Reversals||Others||exchange||
|||||||||translation||
|||||||||differences||
||I. Bad debts provision|833,424.47|788,608.60|34,313.48||-|220.82||1,587,940.41|
||Including: Provision for|313,924.90|747,307.55|8,931.99||-|-||1,052,300.46|
||accounts receivable|||||||||
||Including: Provision for|519,499.57|41,301.05|25,381.49||-|220.82||535,639.95|
||other receivables|||||||||
||II.Provision for decline in|974,871.14|-|2,126.21||-|-||972,744.93|
||value of inventories|||||||||
||III.Provision for|-|-|-||-|-||-|
||impairment losses of|||||||||
||available-for-sale financial|||||||||
||assets|||||||||
||IV.Provision for|-|-|-||-|-||-|
||impairment losses of held-|||||||||
||to-maturity investments|||||||||
||V. Provision for|3,128,300.00|-|-||-|-||3,128,300.00|
||impairment losses of long-|||||||||
||term equity investments|||||||||
||VI. Provision for|-|-|-||-|-||-|
||impairment losses of|||||||||
||investment properties|||||||||
||VII. Provision for|60,695,381.41|-|-||-|-||60,695,381.41|
||impairment losses of fixed|||||||||
||assets|||||||||
||Total|65,631,977.02|788,608.60|36,439.69||-|220.82||66,384,366.75|

 20. Short-term borrowings
Unit:RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Credit loans|555,660,000.00(Note)|550,340,000.00|
|Guarantee loans|-|-|
|Total|555,660,000.00|550,340,000.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 21. Accounts payable
(1) Details of accounts payable are as follows:
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Construction|9,723,745.13|40,539,479.56|
|Service|42,435,106.92|46,368,137.05|
|Material purchase|17,507,607.92|19,660,274.12|
|Rental|10,525,284.03|18,576,812.78|
|Equipment|817,369.10|14,389,818.61|
|Quality margin|-|-|
|Total|81,009,113.10|139,534,522.12|

 (2) As at 30 June 2014, the Group did not have any accounts payable balances which were due to parties having5% or above voting rights in the Company except for the amount due to Nanshan Group. Payables to Nanshan Group or other related parties are specified in (VI) 6.
(3) Details of significant accounts payable aged more than one year as follows:
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Name of entity||Closing balance|Aging||Reasons for||Subsequent|
||||||unpayment||Payment|
||Tonggu sea-route onstruction|2,560,000.00|more than 3 years|Project reserve||-||
||Office|||||||
||Shenzhen IB Technologies|1,641,000.00|1-2 year|Project reserve||-||
||Development Co.Ltd.|||||||
||Total|4,201,000.00||||||

22. Advances
(1) Details of advances are as follows:
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Service fee receipt in advance|3,862,089.51|793,291.30|

 (2) As at 30 June 2014, the Group did not have any advance from shareholders or related parties having5% or above voting rights in the Company.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 23. Employee benefits payable
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Opening carryingamount|Increase|Decrease||Closing|
|||||||carrying|
|||||||amount|
||I. Wages and salaries, bonuses,|59,994,800.82|107,074,231.02|130,044,726.56|37,024,305.28||
||allowances and subsidies||||||
||II. Staff welfare|-|2,993,078.92|2,993,078.92|-||
||III. Social security contributions|463.06|17,242,725.14|17,243,188.20|-||
||Including: Medical insurance|-|3,022,902.78|3,022,902.78|-||
||Basic pension|-|9,254,114.48|9,254,114.48|-||
||Supplementary|-|4,020,852.80|4,020,852.80|-||
||pension (Note1 )||||||
||Unemployment|463.06|250,201.45|250,664.51|-||
||insurance||||||
||Employment injury|-|443,847.13|443,847.13|-||
||insurance||||||
||Generational|-|250,806.50|250,806.50|-||
||insurance||||||
||IV. Housing funds|-|6,141,619.17|6,141,619.17|-||
||V. Labor union and employee|11,991,113.90|4,071,204.77|2,875,456.22|13,186,862.45||
||education funds||||||
||VI. Non-monetary benefits|-|-|-|-||
||VII. Termination benefits|-|121,803.00|121,803.00|-||
||VIII. Others|536,938.50|2,781,590.06|3,318,528.56|-||
||Total|72,523,316.28|140,426,252.08|162,738,400.63|50,211,167.73||

 Note 1: On 3 June 2008, the Group participated in a group defined contribution plan of Nanshan Group approved by Shenzhen government. The above supplementary pension contrib- utions were paid into the plan through Nanshan Group.
Note 2: There are no amounts in arrears under the employee benefits payable.
Note3: Pursuant to the resolution of 2010 general meeting of shareholders on 27 May 2011, the management team will be granted a performance reward scheme based on the current year net profit attributable to the parent and yearly net asset return ratio.
24. Taxes payable
Unit: RMB
||||||
|-|-|-|-|-|
||Opening carryingamount|||Closing carrying|
|Item||Increase|Decrease||
|||||amount|
|Enterprise income tax|43,026,019.62|44,672,049.81|60,749,960.58|26,948,108.85|
|Withholding tax (Note)|13,168,143.76|-|-|13,168,143.76|
|Business tax|300,635.32|2,284,910.67|2,222,909.84|362,636.15|
|Value-added-tax|958,966.41|11,404,412.76|11,988,284.78|375,094.39|
|Others|3,828,925.37|19,848,835.42|20,077,316.68|3,600,444.11|
|Total|61,282,690.48|78,210,208.66|95,038,471.88|44,454,427.26|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Note: The amount represents the withholding tax provided by the Group at the rate of5% or10% when paying out dividends to foreign shareholders and Chiwan Wharf Holdings (H.K.) Limited located in HongKong.
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 25. Interest payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Interest on debentures|24,050,410.93|35,950,684.93|
|Interest on short-term borrowings|929,869.78|862,500.16|
|Total|24,980,280.71|36,813,185.09|

 26. Dividends payable
Unit: RMB
|||||
|-|-|-|-|
||||Reasons for not paying|
|Name of entity|Closing balance|Opening balance|dividends for more|
||||than one year|
|Public A Shares|36,656,217.00|-|N/A|
|Public B Shares|70,159,217.70|-|N/A|
|China Nanshan Development (Group)|104,020,496.27|-|N/A|
|Incorporation ("Nanshan Group")||||
|Shenzhen Malai Storage Co., Ltd|40,621,923.73|-|N/A|
|Hong Kong International Enterprise Co.,Ltd.|77,208,156.09|77,208,156.09|N/A|
|Total|328,666,010.79|77,208,156.09||

27. Other payables
(1) Details of other payables are as follows:
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Temporary receipts|16,563,073.10|24,068,273.34|
|Quality margin|50,590,299.45|23,400,915.81|
|Deposits received|1,628,336.82|2,170,768.36|
|Security expense payable|3,228,862.25|1,794,492.18|
|Others|21,920,458.92|7,710,024.61|
|Total|93,931,030.54|59,144,474.30|

 (2) The aging of other payables based on their recording dates is analyzed as follows:
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging||Proportion||Proportion|
||Amount||Amount||
|||(%)||(%)|
|Within 1 year|53,511,021.25|56.97|45,045,096.38|76.15|
|More than 1 year|35,750,539.39|38.06|9,789,914.42|16.56|
|but not exceeding 2 years|||||
|More than 2 years|534,618.60|0.57|626,757.86|1.06|
|but not exceeding 3 years|||||
|More than 3 years|4,134,851.30|4.40|3,682,705.64|6.23|
|Total|93,931,030.54|100.00|59,144,474.30|100.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(3) As at 30 June 2014, the Group did not have any other payables to shareholders having5% or above voting rights in the Company. For payables to related parties, please refer to (VI) 6. 28. Current portion of non-current liabilities
Details of current portion of non-current liabilities are as follows:
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Current portion of deferred income|4,661,924.52|4,676,624.27|
|Total|4,661,924.52|4,676,624.27|

 Note: Please refer to (V) 32.
29、Other current liabilities
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|||||Amount of issue|Interest||Interest paid|Interest payable|Amount at|
|Name of bond|Par value|Date of|Bond period||payable at|Interest accrued|during the|at closing of the|closing of the|
|||issue|||beginning of|during the year|year|year|year|
|14 Chiwan port|100.00|26/06/2014|365 days|400,000,000.00|theyear219,178.08|219,178.08|-|219,178.08|400,000,000.00|
|CP001||||||||||

Note: According to Notice of Registration Acceptance (Zhong Shi Xie Zhu[2013] No. CP171) issued by China's Interbank Market Dealers Association received by the Company on May 7th, 2013, Market Dealers Association agrees with theCompany’s RMB 1.6 billion yuan of short-term financing registration and the valid period of registration limit is two years from the acceptance of Notice of Registration Acceptance. The Company had repaid the principals and interest for the first phase of short-term financing bills issued by it upon maturity. On 26 Jun. 2014, the Company issued the second phase of short-term financing bills of RMB 400 million at the interest rate of5.00% for a term of one year. And the principals and interest shall be repaid in a lump sum upon maturity.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 30. Bonds payable
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Par||Term of||Opening interest|Accrued interest|Interest paid|Closing interest||
|Name of bonds||Issue date||Issue amount|||||Closing balance|
||value||the bond||payable|for the period|during the period|payable||
|11 ChiWan 01|100|2012.4.26|Five years|500,000,000.00|17,720,547.93|13,091,506.84|26,400,000.00|4,412,054.77|497,742,465.76|
|13 ChiWan 01|100|2013.10.18|Five years|500,000,000.00|5,753,424.66|13,884,931.50|-|19,638,356.16|496,561,095.90|
|Total||||1,000,000,000.00|23,473,972.59|26,976,438.34|26,400,000.00|24,050,410.93|994,303,561.66|

 Note: On 25 November 2011, the Company received the Approval from CSRC (filed as Zhen Jian Xu Ke[2011] No.1889) agreeing the Company to issue corporate bonds with no more than 100 million in par value. On 26 April 2012, the Company's actual issue amounted to RMB500,000,000 with the term of five years. The bond interests should be calculated on simple interest basis at a nominal fixed interest rate of5.28% on a yearly basis.
On 18 October 2013, the Company's actual issue amounted to RMB500,000,000 with the term of five years. The bond interests should be calculated on simple interest basis at a nominal fixed interest rate of5.60% on a yearly basis.
According to the bond prospectus, the Company should make an announcement on whether to exercise the redemption option on the information disclosure media designated by CSRC at the
30th
trading date before the interest payment date in the third interest-bearing year. If the decision of exercising the redemption option is made, the bond would be regarded as to be matured in the third year and the payment mode of redemption would be the same as that of principal and interests of bonds due in the period. If the decision of not exercising the redemption of option is made, the Company should make an announcement on whether to raise the interest rate and the extent of variation, which ranges from zero to 100 base points. If the company chooses to exercise the option of raising the stated interest rate, the stated interest rate of the portion of non-put-back bond due in two years after the remaining period equals to the stated interest rate due in three years prior to the remaining period plus the increased base point. And the stated interest rate of the bond due in two years after the remaining period would be fixed. If the company chooses not to exercise the option of raising the stated interest rate, the original stated interest rate remains the same for the portion of non-put-back bond due in two years after the remaining period.
Investors have the option to sell bonds back to the Company at the interest payment date in the third interest-bearing year at the par value wholly or in partially, after the Company makes the announcement on whether to raise the stated interest rate and the extent of variation.
If the Company abandons the redemption option and the bondholder s abandon the put back option wholly or partially, the rest of the principal would be paid back in advance. Namely,30% proportion of the principal should be paid back at the end of the fourth year since the
bond issued and the rest should be paid back at the end of the fifth year.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 31. Special payables
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing Balance|Note|
|Refunds of Harbor|72,917,084.77|1,165,645.68|-|74,082,730.45|Note|
|Construction Fee||||||

Note: The item is refunds of harbor construction fee to the Company and its subsidiary Chiwan Container Terminal Company Limited from Shenzhen Traffic Bureau. According to Measures of Harbor Construction Fee Management released by Ministry of Finance, the funds should be managed in separate account and can be only used on fundamental facilities' construction of marine transportation.
32. Other non-current liabilities
(1) Details of other non-current liabilities are as follows:
Unit: RMB
||||
|-|-|-|
||Closing carrying|Opening carrying|
|Item|amount|amount|
|Deferred income|51,348,865.31|53,271,175.40|
|Including: Berth priority right (Note 1)|42,761,222.43|44,582,959.88|
|Including: Government grant related to asset (Note 2)|8,587,642.88|8,688,215.52|
|Total|51,348,865.31|53,271,175.40|
|Less: Non-current liabilities due within one year|4,661,924.52|4,676,624.27|
|Including: Berth priority right|4,460,780.00|4,509,667.75|
|Including: Government grant related to asset|201,144.52|166,956.52|
|Non-current liabilities due beyond one year|46,686,940.79|48,594,551.13|

 Note 1: Berth priority right represents that agreed in the contract signed in 2003, which amounts to USD14,000,000. The Group should satisfy the berthing requirement of contracted customers in priority during the contract period. According to the contract, the berth priority right should be amortized over twenty years on the straight-line basis. Note 2: The item is government grants received which is based on the Announcement Released by National Development and Reform Commission about 2010 Investment Plans within Budget of Grains and Modern Logistics Program(NDRC[2010] No.1263) and the Announcement Released by Guangdong Provincial Department of Finance about 2012 Provincial Special Funds to Guide the Development of Modern Service Project (Guangdong Production Letter[2012] No. 621). The asset relating to the government grants has arrived the status for its intended use. Therefore, it shall be amortized on the straight-line basis over the useful life of the related asset.
Government grants programs:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||The amount||Balance at theend of the year||
||Balance at the||included in|||Related to|
|||New subsidy of|||||
|Liability Program|beginning of||operating|Other changes||assets/Related to|
|||the year|||||
||the year||income of the|||income|
||||year||||
|Modern logistics project|7,693,913.48|-|83,478.64|-|7,610,434.84|Related to assets|
|special subsidies|||||||
|Special subsidies for the|994,302.04|-|17,094.00|-|977,208.04|Related to assets|
|development of modern|||||||
|service guide|||||||
|Total|8,688,215.52|-|100,572.64|-|8,587,642.88|-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 33. Share capital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changes for the period||||||
|||||Capitalisation||||
||Opening balance|New issue of|Bonus||||Closing balance|
|||||of surplus|Others|Subtotal||
|||share|issue|||||
|||||reserve||||
|Jan.-Jun.2014:||||||||
|I. Restricted tradable shares||||||||
|1. State-owned shares|-|-|-|-|-|-|-|
|2. State-owned legal person|-|-|-|-|-|-|-|
|shares||||||||
|3. Other domestic shares|387,509.00|-|-|-|63,039.00|63,039.00|450,548.00|
|4. Other foreign shares|-|-|-|-||||
|Total restricted tradable shares|387,509.00|-|-|-|63,039.00|63,039.00|450,548.00|
|II. Tradable shares||||||||
|1. Ordinary shares|464,867,324.00|-|-|-|-|-|464,867,324.00|
|denominated in RMB||||||||
|2. Foreign capital shares|179,508,897.00|-|-|-|(63,039.00)|(63,039.00)|179,445,858.00|
|listed domestically||||||||
|3. Foreign capital shares|-|-|-|-|-|-|-|
|listed overseas||||||||
|4. Others|-|-|-|-|-|-|-|
|Total tradable shares|644,376,221.00|-|-|-|(63,039.00)|(63,039.00)|644,313,182.00|
|III. Total shares|644,763,730.00|-|-|-|-|-|644,763,730.00|
|2013:||||||||
|I. Restricted tradable shares||||||||
|1. State-owned shares|-|-|-|-|-|-|-|
|2. State-owned legal person|-|-|-|-|-|-|-|
|shares||||||||
|3. Other domestic shares|735,466.00|-|-|-|(347,957.00)|(347,957.00)|387,509.00|
||-|-|-|-|-|-|-|
|4. Other foreign shares||||||||
|Total restricted tradable shares|735,466.00|-|-|-|(347,957.00)|(347,957.00)|387,509.00|
|II. Tradable shares||||||||
|1. Ordinary shares|464,789,805.00|-|-|-|77,519.00|77,519.00|464,867,324.00|
|denominated in RMB||||||||
|2. Foreign capital shares|179,238,459.00|-|-|-|270,438.00|270,438.00|179,508,897.00|
|listed domestically||||||||
|3. Foreign capital shares|-|-|-|-|-|-|-|
|listed overseas||||||||
||-|-|-|-|-|-|-|
|4. Others||||||||
|Total tradable shares|644,028,264.00|-|-|-|347,957.00|347,957.00|644,376,221.00|
|III. Total shares|644,763,730.00|-|-|-|-|-|644,763,730.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 34. Capital reserve
Unit: RMB
||||||
|-|-|-|-|-|
||Opening balance|Increase|Decrease|Closing balance|
|Jan.-Jun.2014:|||||
|Capital premium|163,560,083.00|-|-|163,560,083.00|
|Including: Capital contributed by investors|163,560,083.00|-|-|163,560,083.00|
|Conversion option of convertible corporate|-|-|-|-|
|bonds is exercised|||||
|Debt converted into capital|-|-|-|-|
|Differences arising from business combination|-|-|-|-|
|involving enterprises under common control|||||
|Equity acquisition from minority shareholders|-|-|-|-|
|of subsidiaries|||||
|Capital reserve converted into capital|-|-|-|-|
|Other comprehensive income|3,445,000.00|(30,000.00)|-|3,415,000.00|
|Other capital reserve|(861,527.35)|-|-|(861,527.35)|
|Including: Equity component split from convertible|-|-|-|-|
|corporate bonds|||||
|Fair value of equity-settled share-based equity|-|-|-|-|
|instrument|||||
|Surplus of compensation granted by|-|-|-|-|
|government for relocation in the public interests|||||
|Transfer from capital reserve under the previous|(2,781,133.00)|-|-|(2,781,133.00)|
|accounting system|||||
|Others|1,919,605.65|-|-|1,919,605.65|
|Total|166,143,555.65|-|-|166,113,555.65|
|2013:|||||
|Capital premium|163,560,083.00|-|-|163,560,083.00|
|Including: Capital contributed by investors|163,560,083.00|-|-|163,560,083.00|
|Conversion option of convertible corporate|-|-|-|-|
|bonds is exercised|||||
|Debt converted into capital|-|-|-|-|
|Differences arising from business combination|-|-|-|-|
|involving enterprises under common control|||||
|Equity acquisition from minority shareholders|-|-|-|-|
|of subsidiaries|||||
|Capital reserve converted into capital|-|-|-|-|
|Other comprehensive income|3,167,500.00|277,500.00|-|3,445,000.00|
|Other capital reserve|(861,527.35)|-|-|(861,527.35)|
|Including: Equity component split from convertible|-|-|-|-|
|corporate bonds|||||
|Fair value of equity-settled share-based equity|-|-|-|-|
|instrument|||||
|Surplus of compensation granted by|-|-|-|-|
|government for relocation in the public interests|||||
|Transfer from capital reserve under the previous|(2,781,133.00)|-|-|(2,781,133.00)|
|accounting system|||||
|Others|1,919,605.65|-|-|1,919,605.65|
|Total|165,866,055.65|277,500.00|-|166,143,555.65|

 35. Special reserve
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Jan.-Jun.2014:|||||
|Production safety fee|2,194,178.40|7,531,245.24|6,323,474.01|3,401,949.63|
|2013:|||||
|Production safety fee|1,394,831.60|14,841,719.02|14,042,372.22|2,194,178.40|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 36. Surplus reserve
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Jan.-Jun.2014:|||||
|Statutory surplus reserve|483,685,708.52|36,388,726.04|-|520,074,434.56|
|2013:|||||
|Statutory surplus reserve|464,704,268.52|18,981,440.00|-|483,685,708.52|

 Note: In accordance with the Company Law and the Company's Articles of Association, the Company should appropriate10% of net profit for the year to the statutory surplus reserve, and the Company can cease appropriation when the statutory surplus reserve accumulated to more than50% of the paid in capital. The statutory surplus reserve can be used to make up for the loss or increase the paid in capital after approval.
37. Unappropriated profit
Unit: RMB
||||
|-|-|-|
|||Proportion of|
|Item|Amount|appropriation or|
|||allocation|
|Jan.-Jun.2014:|||
|Before adjustment: Unappropriated profit at the end of prior year|2,664,771,789.70||
|Adjustment: Total unappropriated profit at the beginning of year|-||
|After adjustment: Unappropriated profit at the beginning of year|2,664,771,789.70||
|Add: Net profit attributable to shareholders of the parent company for|235,338,598.71||
|the period|||
|Less: Appropriation to statutory surplus reserve|36,388,726.04|Note 1|
|Appropriation to discretionary surplus reserve|-||
|Appropriation to general risk reserve|-||
|Ordinary shares' dividends payable|251,457,854.70|Note 2|
|Ordinary shares' dividends converted into share capital|||
|Unappropriated profit at the end of the period|2,612,263,807.67||
|2013:|||
|Before adjustment: Unappropriated profit at the end of prior year|2,414,907,916.91||
|Adjustment: Total unappropriated profit at the beginning of year|-||
|After adjustment: Unappropriated profit at the beginning of year|2,414,907,916.91||
|Add: Net profit attributable to shareholders of the parent company for|502,894,547.79||
|the period|||
|Less: Appropriation to statutory surplus reserve|18,981,440.00||
|Appropriation to discretionary surplus reserve|-||
|Appropriation to general risk reserve|-||
|Ordinary shares' dividends payable|234,049,235.00||
|Ordinary shares' dividends converted into share capital|-||
|Unappropriated profit at the end of the period|2,664,771,789.70||

Note 1: Withdraw statutory surplus reserve
According to the Articles of Association, the Company is required to transfer10% of its
net profit to the statutory surplus reserve.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 37. Unappropriated profit - continued
Note 2: Cash dividends approved by shareholders' meeting during the year
Pursuant to the board resolution on 22 May 2014, on the basis of 644,763,730 issued shares for the year ended 31 December 2013, dividends of RMB3.90 for every 10 shares were distributed to all the shareholders, which amounted to RMB251,457,854.70. Note 3: Appropriation to surplus reserve that has been made by subsidiaries
As at 30 June 2014, the balance of the Group's unappropriated profit included appropria - tion to surplus reserve that has been made by subsidiaries amounting to
RMB522,067,616.93 (31 December 2013: 522,067,616.93).
38. Operating income and operating costs
(1) Operating income and operating costs
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Jan.-Jun.2014||Jan.-Jun.2013|
|Principal operating income|843,430,549.01||834,067,173.16||
|Other operating income|32,550,692.58||31,168,619.08||
|Total|875,981,241.59||865,235,792.24||
|Principal operating costs|458,261,343.40||385,290,057.34||
|Other operating costs|4,404,779.74||4,932,219.55||
|Total|462,666,123.14||390,222,276.89||

 (2) Principal operating activities (classified by business)
Unit: RMB
||||||
|-|-|-|-|-|
||Jan.-Jun.2014||Jan.-Jun.2013||
|Item|||||
||Operating income|Operating costs|Operating income|Operating costs|
|Load and unload services|796,746,878.81|401,889,050.16|785,035,516.21|334,016,796.47|
|Port ancillary services|41,256,748.34|56,372,293.24|42,926,996.72|51,273,260.87|
|Agency and others services|5,426,921.86|-|6,104,660.23|-|
|Total|843,430,549.01|458,261,343.40|834,067,173.16|385,290,057.34|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 38. Operating income and operating costs - continued
(3) Principal operating activities (classified by geographical areas)
Unit: RMB
||||||
|-|-|-|-|-|
||Jan.-Jun.2014||Jan.-Jun.2013||
|Item|||||
||Operating income|Operating costs|Operating income|Operating costs|
|Mainland China|841,034,688.44|458,261,343.40|830,850,550.63|385,290,057.34|
|Hong Kong|2,395,860.57|-|3,216,622.53|-|
|Total|843,430,549.01|458,261,343.40|834,067,173.16|385,290,057.34|

 (4) Other services
Unit: RMB
||||||
|-|-|-|-|-|
||Jan.-Jun.2014||Jan.-Jun.2013||
|Item|Other operating|Other operating|Other operating|Other operating|
||income|cost|income|cost|
|Lease income|12,549,480.18|1,049,078.44|10,380,759.35|1,754,504.76|
|Security fee|5,414,867.79|-|5,082,786.21|-|
|Port ancillary services|8,603,614.86|2,812,888.08|9,298,792.71|2,691,432.47|
|Agency fee|1,400,928.32|542,813.22|1,806,623.04|486,282.32|
|Sales of material|981,909.75|-|733,553.96|-|
|Documentation fee|646,423.93|-|604,851.83|-|
|Others|2,953,467.75|-|3,261,251.98|-|
|Total|32,550,692.58|4,404,779.74|31,168,619.08|4,932,219.55|

 (5) Operating income from the Group's top five customers
Unit: RMB
||||
|-|-|-|
|||Proportion to total operating|
|Name of customer|Operating income||
|||income of the Group (%)|
|Customer A|189,128,638.00|21.59|
|Customer B|130,422,834.78|14.89|
|Customer C|51,848,873.04|5.92|
|Customer D|22,192,664.06|2.53|
|Customer E|11,518,467.04|1.32|
|Total|405,111,476.92|46.25|

 39. Business taxes and surcharges
Unit: RMB
|||||
|-|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|Basis of calculation|
|Business tax|2,284,910.67|1,502,462.41|Note|
|Urban maintenance and construction tax|752,008.61|492,452.62|Note|
|Education surcharges|568,777.54|318,304.28|Note|
|Others|190,201.29|389,354.61|-|
|Total|3,795,898.11|2,702,573.92|-|

 Note: Please refer to Note (III).
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 40. Financial expenses
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Interest expense|45,153,008.94|35,968,431.14|
|Less: Capitalized interest expenses|8,392,657.02|10,820,315.78|
|Less: Interest income|5,861,902.78|1,283,788.52|
|Exchange differences|3,575,938.85|(13,602,829.98)|
|Less: Capitalized exchange differences|-|-|
|Others|2,721,374.95|2,487,691.18|
|Total|37,195,762.94|12,749,188.04|

 41. Impairment losses of assets
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|I. Bad debt losses|754,295.12|(50,374.00)|
|II. Write-down of inventories|(2,126.21)||
|III. Impairment on available-for-sale financial assets|-|-|
|IV. Impairment on held-to-maturity investments|-|-|
|V. Impairment on long-term equity investments|-|-|
|VI. Impairment on investment properties|-|-|
|VII. Impairment on fixed assets|-|-|
|VIII. Impairment on construction materials|-|-|
|IX. Impairment on construction in progress|-|-|
|X. Impairment on bearer biological assets|-|-|
|XI. Impairment on oil and gas assets|-|-|
|XII. Impairment on intangible assets|-|-|
|XIII. Impairment on goodwill|-|-|
|XIV. Others|-|-|
|Total|752,168.91|(50,374.00)|

 42. Investment income
(1) Details of investment income
Unit: RMB
||||
|-|-|-|
||Jan.-Jun.2014|Jan.-Jun.2013|
|Long-term equity investments income under cost method|-|-|
|Long-term equity investments income under equity method|42,846,690.90|46,022,294.05|
|Investment income on disposal of long-term equity investment|-|-|
|Investment income on available-for-sale financial assets, etc.|380,000.00|-|
|Others|1,202,054.79|-|
|Total|44,428,745.69|46,022,294.05|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 42. Investment income - continued
(2) Long-term equity investments income under equity method
Unit: RMB
|||||
|-|-|-|-|
||||Reasons for increases or|
|Investee|Jan.-Jun.2014|Jan.-Jun.2013|decreases in the current|
||||compared to the prior period|
|MPIL|22,087,996.12|26,880,387.12|Net profit of investee fluctuates.|
|China Overseas Harbor Affairs (Laizhou)|18,909,226.32|16,091,208.63|Net profit of investee fluctuates.|
|Co.,Ltd||||
|CMBL|2,251,833.48|2,812,027.08|Net profit of investee fluctuates.|
|China Merchants Holdings (international )|(1,669,712.31)|238,671.22|Net profit of investee fluctuates.|
|Information Technology Co.,Ltd||||
|China Development Finance Co., Ltd|1,267,347.29|-|Net profit of investee fluctuates.|
|Total|42,846,690.90|46,022,294.05|-|

 43. Non-operating income
(1) Details of non-operating income are as follows:
Unit: RMB
|||||
|-|-|-|-|
||||Amount recognized|
||||as non-recurring|
|Item|Jan.-Jun.2014|Jan.-Jun.2013||
||||gain and loss in the|
||||current period|
|Total gains on disposal of non-current assets|-|-|-|
|Including: Gains on disposal of intangible assets|-|-|-|
|Gains on disposal of fixed assets|-|-|-|
|Government grants|4,290,189.30|83,478.64|4,290,189.30|
|Insurance compensation income|-|29,868.00|-|
|Income derived from settlement of the payables|-|-|-|
|that cannot be paid||||
|Others|315,708.22|1,542,786.27|315,708.22|
|Total|4,605,897.52|1,656,132.51|4,605,897.52|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 43. Non-operating income - continued
(2) Details of government grants are as follows:
Unit: RMB
|||||
|-|-|-|-|
||||Related to|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|assets/Related to|
||||income|
|Circulation business development project funds|-|-|Related to income|
|Financial support funds of business tax converted to|589,616.66|-|Related to income|
|VAT||||
|Modern logistics project special subsidies|83,478.64|83,478.64|Related to assets|
|Special subsidies for the development of modern|17,094.00|-|Related to assets|
|service guide||||
|Energy saving subsidy|3,600,000.00|-|Related to income|
|Total|4,290,189.30|83,478.64|-|

 44. Non-operating expenses
Unit: RMB
|||||
|-|-|-|-|
||||Amount recognized|
||||as non-recurring|
|Item|Jan.-Jun.2014|Jan.-Jun.2013||
||||gain and loss in the|
||||current period|
|Total losses on disposal of non-current assets|74,463.56|21,401.26|74,463.56|
|Including: Losses on disposal of fixed assets|74,463.56|21,401.26|74,463.56|
|Donations contributed|13,000.00|17,000.00|13,000.00|
|Amercement outlay|6,302.57|5,000.00|6,302.57|
|Others|0.52|138,643.92|0.52|
|Total|93,766.65|182,045.18|93,766.65|

 45. Income tax expenses
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Current tax expense calculated according to tax laws and relevantrequirements|44,672,049.81|60,847,201.75|
|Deferred income tax|8,568,277.19|(6,668,064.34)|
|Total|53,240,327.00|54,179,137.41|

 Reconciliation of income tax expenses to the accounting profit is as follows:
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Accounting profit|342,646,485.86|433,252,676.75|
|Income tax expenses calculated at 25% (the prior year: 25 %)|85,661,621.47|108,313,169.19|
|Effect of expenses that are not deductible for tax purposes|1,464,117.43|129,911.02|
|Effect of tax-free income|(10,806,672.73)|(11,505,573.51)|
|Effect of unrecognized deductible losses and deductible temporary|9,052,259.72|577,817.09|
|differences for tax purposes|||
|Changes in opening balances of deferred tax assets/liabilities due to the|-|-|
|adjustment in tax rate|||
|Effect of different tax rates of subsidiaries operating in other jurisdictions|(11,120.79)|(103,452.57)|
|Effect of tax preference policy|(32,119,878.10)|(43,232,733.80)|
|Withholding tax (Note)|-|-|
|Income tax expense|53,240,327.00|54,179,137.41|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 45. Income tax expense - continued
Note: Withholding income tax was accrued at the rate of5% or10% for dividend payable to Chiwan Wharf Holdings (H.K.) Limited for the six months ended 30 June 2014, declared by those Group's PRC subsidiaries of which Chiwan Wharf Holdings (H.K.) Limited is a shareholder.
46. Government grants
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Financial support funds of business tax converted to VAT|589,616.66|-|
|Energy saving subsidy|3,600,000.00|-|
|Sub-total|4,189,616.66|-|
|Total|4,189,616.66|-|
|Less: government grants credited in deferred income|-|-|
|Add: Government grants in current year profit debited deferred|100,572.64|83,478.64|
|income|||
|Government grants credited in current year profit|4,290,189.30|83,478.64|

 47. Borrowing cost
Unit: RMB
||||
|-|-|-|
||Amount of borrowing||
||costs capitalised during|Capitalisation|
|Name of Project|the year|rate|
|Construction in progress|8,392,657.02|5.96%|
|Sub-total of borrowing costs capitalised during the year|8,392,657.02|-|
|Borrowing costs recognised in profit or loss during the year|36,760,351.92|-|
|Total of borrowing costs during the year|45,153,008.94|-|

 48. Earnings per share
For the purpose of calculating earnings per share, net profit for the current period attributable to ordinary shareholders is:
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Net profit for the current period attributable to ordinary shareholders|235,338,598.71|295,594,905.20|
|Including: Net profit from continued operations|-|-|
|Net profit from discontinued operations|-|-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 48. 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:
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Number of ordinary shares outstanding at the beginning of year|644,763,730|644,763,730|
|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 year|644,763,730|644,763,730|

 Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Calculated based on net profit attributable to shareholders of the|-|-|
|parent:|||
|Basic earnings per share|0.365|0.458|
|Diluted earnings per share|0.365|0.458|
|Calculated based on net profit from continued operations attributable|||
|to shareholders of the parent:|||
|Basic earnings per share|0.365|0.458|
|Diluted earnings per share|0.365|0.458|
|Calculated based on net profit from discontinued operations|||
|attributable to shareholders of the parent:|||
|Basic earnings per share|-|-|
|Diluted earnings per share|-|-|

 Since there are no dilutive potential ordinary shares, the diluted earnings per share equals to the basic earnings per share.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 49. Other comprehensive income
Unit: RMB
|||||
|-|-|-|-|
|Item||Jan.-Jun.2014|Jan.-Jun.2013|
|1. Gains (losses) arising from available-for-sale financial assets|(40,000.00)||180,000.00|
|Less: Tax effects arising from available-for-sale financial assets|(10,000.00)||45,000.00|
|Net amounts included in other comprehensive income in the prior|-||-|
|period that are transferred to profit or loss for the period||||
|Subtotal|(30,000.00)||135,000.00|
|2. Share of other comprehensive income of the investee accounted|-||-|
|for using the equity method||||
|Less: Tax effects arising from the share of other comprehensive|-||-|
|income of the investee accounted for using the equity method||||
|Net amounts included in other comprehensive income in the prior|-||-|
|period that are transferred to profit or loss for the period||||
|Subtotal|-||-|
|3. Gains (losses) arising from cash flow hedging instruments|-||-|
|Less: Tax effects arising from cash flow hedging instruments|-||-|
|Net amounts included in other comprehensive income in the prior|-||-|
|period that are transferred to profit or loss for the period||||
|Adjustments to the initial recognition amount of hedged items|-||-|
|Subtotal|-||-|
|4. Translation differences of financial statements denominated in|423.06||(80,074.00)|
|foreign currencies||||
|Less: Net amounts transferred to profit or loss for the period on|-||-|
|disposal of foreign operations||||
|Subtotal|423.06||(80,074.00)|
|5. Others|-||-|
|Less: Tax effects arising from other items recognized in other|-||-|
|comprehensive income||||
|Net amounts included in other comprehensive income in the prior|-||-|
|period that are transferred to profit or loss for the period||||
|Subtotal|-||-|
|Total|(29,576.94)||54,926.00|

 50. Notes to items in the cash flow statement
(1) Other cash receipts relating to operating activities
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Interest income|6,614,240.27|1,283,788.52|
|Refunds of Harbor Construction Fee received|534,310.99|72,381.41|
|Government grants|4,189,617.06|-|
|Others|3,873,117.75|1,771,706.66|
|Total|15,211,286.07|3,127,876.59|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 50. Notes to items in the cash flow statement - continued
(2) Other cash payments relating to operating activities
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Office expenses & utilities|2,913,245.64|5,146,830.45|
|Port expenses|2,615,958.33|5,801,770.19|
|Entertainment|2,006,290.96|4,271,362.60|
|Car expenses|2,073,744.86|2,312,581.69|
|Asset insurance|860,976.14|1,540,780.22|
|Consulting & auditing|1,598,050.91|2,649,298.11|
|Travel & accommodation|912,859.50|1,107,556.46|
|Advertisements & exhibition|222,831.33|68,144.08|
|Others|24,787,852.37|25,750,901.74|
|Total|37,991,810.04|48,649,225.54|

 (3) Other cash payments relating to financing activities
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|The commission charges on borrowings were paid|201,424.00|105,307.00|
|Total|201,424.00|105,307.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 51. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
||||
|-|-|-|
|Supplementary|Jan.-Jun.2014|Jan.-Jun.2013|
|1. Reconciliation of net profit to cash flows from operating|||
|activities:|||
|Net profit|289,406,158.86|379,073,539.34|
|Add: Provision for impairment losses of assets|752,168.91|(50,374.00)|
|Depreciation of fixed assets|93,731,499.37|84,016,743.43|
|Depreciation and amortization of investment property|607,891.20|607,877.08|
|Amortization of intangible assets|21,836,668.85|19,773,191.81|
|Amortization of long-term prepaid expenses|1,434,809.29|4,092,077.09|
|Losses on disposal of fixed assets , intangible assets and|74,463.56|21,401.26|
|other long-term assets|||
|Financial expenses|36,760,351.92|30,187,878.42|
|Gains arising from investments|(44,428,745.69)|(46,022,294.05)|
|Decrease(Increase) in deferred tax assets|8,568,277.19|(6,668,064.38)|
|Decrease in inventories|(611,854.99)|(1,104,802.18)|
|Decrease(Increase) in operating receivables|(80,832,478.39)|(53,448,808.43)|
|Increase(Decrease) in operating payables|(44,666,000.33)|(52,661,221.01)|
|Net cash flows from operating activities|282,633,209.75|357,817,144.38|
|2. Significant investing and financing activities that do not involve|-|-|
|cash receipts and payments:|||
|Conversion of debt into capital|-|-|
|Convertible bonds due within one year|-|-|
|Fixed assets acquired under finance leases|-|-|
|3. Net changes in cash and cash equivalents:|-|-|
|Closing balance of cash|782,831,116.07|623,420,560.02|
|Less: Opening balance of cash|715,539,516.48|314,855,567.54|
|Add: Closing balance of cash equivalents|-|-|
|Less: Opening balance of cash equivalents|-|-|
|Net increase(Decrease) in cash and cash equivalents|67,291,599.59|308,564,992.48|

 (2) Composition of cash and cash equivalents
Unit: RMB
|||||
|-|-|-|-|
|Item||Closing balance|Opening balance|
|I. Cash|782,831,116.07||715,539,516.48|
|Including: Cash on hand|13,769.85||10,685.59|
|Bank deposits|780,383,355.22||713,508,210.87|
|Other monetary funds|2,433,991.00||2,020,620.02|
|II. Cash equivalents|-||-|
|III. Closing balance of cash and cash|782,831,116.07||715,539,516.48|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(VI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion of||||
|||||||||Proportion of|||
||||||||the entity's||Ultimate||
|||||||||the entity's|||
|Name of the|Related party|Type of the|Place of|Legal|||ownership||controllin|Organization|
||||||Nature of business|Registered capital||voting power|||
|parent|relationship|entity|incorporation|representative|||interests held||g party of|code|
|||||||||held by the|||
||||||||by the parent||the entity||
|||||||||parent (%)|||
||||||||(%)||||
||Controllingshareholders|Listed in HongKong|Hong Kong|Li Jianhong|Port shipping|HKD5,000,000,000.00|-|66.10(Note)|CMG|N/A|
|CMHI|||||||||||
||shareholders|Sino-foreignjoint venture|Shenzhen|Fu Yuning|Land development,port service andtransportation,industry andcommerce, tour, realestate and others|RMB900,000,000.00|32.52|- (Note)|The stateownedassetssupervision andAdministrationCommission of theStateCouncil|61883297-6|
|Nanshan|||||||||||
|Group|||||||||||
|The ultimate controller of the Group is CMG, whose financial statements are not required to be made public.|||||||||||

Note: As mentioned in Note (I), Nanshan Group had57.52% equity in the Company before 1 Novermber 2012. Since 1 November 2012, CMHI obtained8.58% equity via its subsidiary Jing Feng Company, and obtained another57.52% equity by entrustment of Nanshan Group's stock, accordingly holding totally66.10% of the voting shares. Please refer to Note (I) for details.
On March 6th, 2013, the State-owned Assets Supervision and Administration Commission of the State Council agreed that Nanshan Group transferred its holding 161,190,933 A-shares to Warehousing (Shenzhen) Co., Ltd, subsidiary of China Merchants Holdings International. The transfer procedures of registration of the above shares have been completed on April 25th, 2013.
2. Subsidiaries of the Company
The general background and other related information of the subsidiaries are set out in Note (IV).
3. Associates and joint ventures of the Company
The general background and other related information of the associates and joint ventures are set out in Note (V) 9.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(VI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company
||||
|-|-|-|
||Relationships between other related||
|Name of other related parties||Organization code|
||parties and the Company||
|Haiqin Engineering|Controlled by the same controlling shareholder|61888000-1|
|Shenzhen Mawan Port Co., Ltd. ("SMP")|Controlled by the same controlling shareholder|74322579-6|
|Shenzhen Mawan Wharf Co., Ltd. ("SMW")|Controlled by the same controlling shareholder|74322582-5|
|China Merchants Port Services (Shenzhen) Co., Ltd ("CMPS")|Controlled by the same controlling shareholder|19244179-0|
|Shekou Container Terminals Limited ("SCT")|Controlled by the same controlling shareholder|61883279-X|
|An Xunjie Container Terminals Limited|Controlled by the same controlling shareholder|75048172-0|
|Shenzhen Lian Yunjie Container Terminals Limited|Controlled by the same controlling shareholder|71093674-3|
|China Merchants International Cold Chain (Shenzhen) Company|Controlled by the same controlling shareholder|61889222-3|
|Limited ("CMCCL")|||
|Shenzhen Haixing Harbor Development Co.,Ltd("Haixing")|Controlled by the same controlling shareholder|61884362-4|
|Shenzhen Huxing Tug Service Co., Ltd.|Controlled by the same controlling shareholder|19233962-2|
|Shenzhen Lianda Tug Service Co., Ltd.|Controlled by the same controlling shareholder|61880378-8|
|China Ocean Shipping Agency (Shenzhen) Company Limited|Controlled by the same controlling shareholder|19244404-3|
|Hongkong International Enterprise Co., Ltd.|Controlled by the same controlling shareholder|N/A|
|China Merchants Container Services Ltd.|Controlled by the same controlling shareholder|N/A|
|Shenzhen Malai Warehouse Co., Ltd.|Controlled by the same controlling shareholder|79255372-9|
|Laizhou Hairun of Port Management Co. Ltd.|A subsidiary of the associate|763687373|
|Shenzhen China Merchants Shangzhi Investment Co., Ltd.|Controlled by the same ultimate actual controller|57637705-4|
|Shenzhen China Merchants Qianhaiwan Property Co., Ltd.|Controlled by the same ultimate actual controller|79386851-1|
|Shenzhen China Merchants International Shipping Agency Co., Ltd.|Controlled by the same ultimate actual controller|70840200-5|
|Shenzhen City Venture Investment Co. Ltd.|Controlled by the same ultimate actual controller|70844223|
|Shenzhen China Merchants Property Management Co., Ltd.|Controlled by the same ultimate actual controller|19244307-3|
||Associated company controlled by the controllingshareholder|61883389-9|
|China Petroleum Supply Base Co., Ltd. ("CPSB")|||
|Shenzhen Nanshan Real Estate development Ltd.(Nanshan|Associated company controlled by the controllingshareholder|75046859-3|
|Development)|||
||Associated company controlled by the controllingshareholder|70820542-3|
|Zengcheng Xinkang property Co., Ltd.|||
||Associated company controlled by the controllingshareholder|61885906-0|
|Shenzhen Baowan Holding Co., Ltd.|||
||Associated company controlled by the controllingshareholder|70846415-0|
|Shenzhen Chiwan Property Management Co., Ltd.|||
|Shenzhen Chixiao Construction Technology Co., Ltd. (Chixiao|Associated company controlled by the controllingshareholder|61881595-7|
|Construction)|||
||Associated company controlled by the controllingshareholder|70845749-5|
|Shenzhen Xuqin Industrial Development Co., Ltd.(“Xuqin”)|||
||Associated company controlled by the same ultimateactual controller|10001686-X|
|China Merchant Bank Co., Ltd.("CMB")|||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(VI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions
(1) Sales and purchase of goods, provision and receipt of services
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Related parties||||Jan.-Jun.2014||Jan.-Jun.2013||
||||Pricing and||Proportion of the||Proportion of the|
||Type of related party|Content of related|decision-makingprocedures of||amount of relatedparty transactions to||amount of relatedparty transactions to|
||transaction|party transaction|related partytransactions|Amount|that of similartransactions|Amount|that of similartransactions|
||||||(%)||(%)|
|Purchase of goods and receiving of services:||||||||
|China Merchants Holdings|Receipt of service|Technical servicefee|Negotiation|1,078,561.44|0.23|3,554,336.00|0.91|
|(International) Information||||||||
|Technology Company Ltd||||||||
||Receipt of service|Load and unloadservice|Negotiation|2,383,755.00|0.52|2,344,905.00|0.60|
|Haixing||||||||
|Xuqin|Receipt of service|Construction|Negotiation|1,022,902.10|0.22|790,717.73|0.20|
||Receipt of service|Load and unloadservice|Negotiation|47,616.00|0.01|4,951,395.00|1.27|
|SCT||||||||
||Receipt of service|Projectmanagement|Negotiation|-|-|2,600,000.00|0.67|
|Haiqin Engineering||||||||
|Shenzhen Chiwan Property|Receipt of service|Propertymanagement fee|Negotiation|1,149,854.30|0.25|908,781.09|0.23|
|Management Co., Ltd||||||||
|An Xunjie Container Terminals|Receipt of service|Load and unloadservice|Negotiation|-|-|1,203,967.80|0.31|
|Limited||||||||
|Zengcheng Xinkang property Co.,|Receipt of service|Propertymanagement fee|Negotiation|285,936.00|0.06|-|0.07|
|Ltd.||||||||
|Shenzhen China Merchants|Receipt of service|Agency service|Negotiation|199,313.14|0.04|-|-|
|International Shipping Agency Co.,||||||||
|Ltd.||||||||
|Shenzhen Lian Yunjie Container|Receipt of service|Load and unloadservice|Negotiation|-|-|403,304.44|0.10|
|Terminals Limited||||||||
||Receipt of service|Propertymanagement fee|Negotiation|19,930.50|0.16|-|0.18|
|CPSB||||||||
||Receipt of service|Load and unloadservice|Negotiation|-|-|1,237,915.07|0.32|
|SMP||||||||
||Receipt of service|Load and unloadservice|Negotiation|13,228.80|0.003|5,710,161.14|1.46|
|SMW||||||||
|China Merchants Preperty|Receipt of service|Propertymanagement fee|Negotiation|467,768.56|0.10|-|-|
|Manangement co.,Ltd||||||||
|Shenzhen Lianda Tug Service Co.,|Receipt of service|Tug Service|Negotiation|201,044.50|0.04|-|-|
|Ltd.||||||||
|Shenzhen Huxing Tug Service Co.,|Receipt of service|Tug Service|Negotiation|11,097.00|0.002|-|-|
|Ltd.||||||||
|China Ocean Shipping Agency|Receipt of service|Load and unloadservice|Negotiation|17,640.00|0.004|-|-|
|(Shenzhen) Company Limited||||||||
|Total||||6,898,647.34||23,705,483.27||
|Rendering of services:||||||||
|SMP|Provision of service|Trailer service etc.|Negotiation|5,480,569.05|13.28|5,261,418.66|7.37|
|CMBL|Provision of service|Trailer service etc.|Negotiation|2,882,059.68|6.99|3,643,980.00|6.45|
|SMW|Provision of service|Trailer service etc.|Negotiation|1,929,582.33|4.68|1,106,268.47|1.55|
|China Ocean Shipping Agency|Provision of service|Tugboat service|Negotiation|2,406,443.34|5.83|2,691,945.00|3.77|
|(Shenzhen) Company Limited||||||||
|Shenzhen China Merchants|Provision of service|Tugboat service|Negotiation|1,150,437.60|2.79|1,642,398.30|2.30|
|International Shipping Agency Co.,||||||||
|Ltd.||||||||
|SCT|Provision of service|Trailer service etc.|Negotiation|708,850.00|1.62|744,330.38|1.04|
||Provision of service|Load and unloadservice|Negotiation|216,777.00|0.03|230,274.00|0.03|
|CMCCL||||||||
|Shenzhen Lianda Tug Service Co.,|Provision of service|Tugboat service|Negotiation|89,230.25|0.22|245,017.00|0.34|
|Ltd.||||||||
|China Petroleum Supply Base Co.,|Provision of service|Load and unloadservice|Negotiation|-|0.01|125,749.00|0.02|
|Ltd. ("CPSB")||||||||
|Shenzhen Huxing Tug Service Co.,|Provision of service|Tugboat service|Negotiation|12,282.00|0.03|120,314.00|0.17|
|Ltd.||||||||
|Zengcheng Xinkang property Co.,|Provision of service|Others|Negotiation|3,112.63|0.06|-|0.01|
|Ltd.||||||||
|Total||||14,879,343.88||15,811,694.81||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(VI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties
The Group as the lessor:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Name of lessee||||Basis of|Lease income|
|||Type of leased|Inception date|Expiration date|||
|Name of lessor|||||determining the|recognised in the|
|||assets|of leases|of leases|||
||||||lease income|current year|
||CPSB|Coastal line,packing yards androad lighting|January 2014|December 2014|Negotiation|5,982,634.64|
|The Company|||||||
|Chiwan Container|CMBL|Crane|January 2014|December 2014|Negotiation|960,000.00|
|Terminal Company|||||||
|Limited|||||||
|Total||||||6,942,634.64|

 The Group as the lessee:
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Name of lessor||Name of lessee|Type ofleased assets|Inceptiondate ofleases|Expirationdate ofleases||Basis ofdeterminingthe leasepayment|Lease payment recognisedin the current year|
|Nanshan Group||Companies withinthe Group|Land, Officeand packingyard|January2014|Automaticrenewal|Negotiation||29,420,925.56|
|Shenzhen MalaiWarehouse Co.,Ltd.||The Company andChiwan ContainerTerminal CompanyLimited|Warehouse|January2014|December2014|Negotiation||3,613,869.00|
|CMPS||Chiwan ContainerTerminal CompanyLimited|Former Bayport lands|January2014|December2014|Negotiation||1,679,994.00|
|CPSB||The Company|Packingyard andcrane|January2014|December2014|Negotiation||715,691.90|
|SMSIL|henzhen China|Chiwan ContainerTerminal CompanyLimited|Buildings|January2014|December2014|Negotiation||579,475.00|
||erchants||||||||
||hangzhi||||||||
||nvestment Co.,||||||||
||td.||||||||
|SCT||The Company|Crane|January2014|December2014|Negotiation||360,000.00|
|SMQC|henzhen China|Chiwan ContainerTerminal|Building|January2014|December2014|Negotiation||182,652.00|
||erchants||||||||
||ianhaiwan Property||||||||
||o., Ltd.||||||||
|Shenzhen BaowanHolding Co., Ltd.||Shenzhen ChiwanShipping andTransportationCompany Limited|Warehouse|January2014|December2014|Negotiation||54,673.53|
|T|otal|||||||36,607,280.99|

 (3) Compensation for key management personnel
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Compensation for key management personnel|5,817,400.00|4,054,000.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(VI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Related parties|Closing balance|Opening balance|
|Cash and bank|China Merchants Bank|438,701,561.04|152,851,220.46|
|Accounts|SMP|1,241,905.86|1,397,911.61|
|receivable|China Ocean Shipping Agency (Shenzhen)Company Limited|1,370,899.20|880,489.90|
||SCT|584,200.00|768,650.00|
||SMW|569,498.74|460,432.07|
||CMBL|2,799,021.00|334,800.00|
||Shenzhen China Merchants InternationalShipping Agency Co., Ltd.|-|151,120.00|
||CPSB|6,118,875.00|113,503.83|
||Others|294,045.00|7,403.04|
||Total|12,978,444.80|4,114,310.45|
|Other receivables|CMBL|2,717,494.10|1,000,000.00|
||Shenzhen CM Qianhaiwan Property Co.,Ltd.|-|448,820.00|
||CMCCL|10,415.00|435,542.50|
||SMP|72,930.08|334,438.26|
||SMW|7,235,626.90|207,921.81|
||Xuqin|-|320,000.00|
||CPSB|135,621.91|135,621.91|
||Shenzhen China Merchants ShangzhiInvestment Co., Ltd.|67,260.00|85,684.00|
||Shenzhen China Merchants PropertyManagement Co., Ltd.|7,158.00|5,294.00|
||Nanshan Group|1,269,537.37|51,581.70|
||Others|185,612.91|120,572.70|
||Total|11,566,034.36|3,145,476.88|
|Dividends|MPIL|-|3,334,985.50|
|receivable||||
|Accounts payable|Nanshan Group|13,450,844.80|21,210,268.59|
||Haiqin Engineering|-|4,225,367.81|
||China Merchants Holdings (International)Information Technology Company Ltd.|-|3,069,805.00|
||Xuqin|1,637,038.00|2,483,784.77|
||Zengcheng Xinkang property Co., Ltd.|-|138,310.50|
||SCT|180,000.00|120,000.00|
||Total|15,267,882.80|31,247,536.67|
|Dividends|Shenzhen Malai Warehouse Co., Ltd.|40,621,923.73|-|
|payable|Nanshan Group|104,020,496.27|-|
||Total|144,642,420.00|-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(VI) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
Unit: RMB
|||||
|-|-|-|-|
|Item|Related parties|Closing balance|Opening balance|
|Other|Laizhou Hairun of Port Management Co.Ltd.|-|550,000.00|
|payables||||
||SMW|583,530.00|336,428.00|
||SMP|1,657,756.77|-|
||China Merchants Holdings (International)Information Technology Company Ltd.|104,050.00|298,403.00|
||CMBL|78,568.00|112,928.51|
||SCT|13,872.50|13,872.00|
||China Merchants Container Services Ltd.|574,071.70|-|
||Haiqin Engineering|2,498,888.48|-|
||Shenzhen Malai Warehouse Co., Ltd.|409,211.00|-|
||Others|29,553.95|10,385.10|
||Total|5,949,502.40|1,322,016.61|

 (VII) COMMITMENTS
1. Capital commitments
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Capital commitments that have been entered into but have|||
|not been recognised in the financial statements:|||
|Commitment for acquisition of long-term assets|82,139,889.63|117,323,839.67|

 2. Operating lease commitments
As of the balance sheet date, the Group had the following commitments in respect of non- cancellable operating leases:
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Minimum lease payments under non-cancellable operating|||
|leases:|||
|1st year subsequent to the balance sheet date|36,328,274.92|21,549,029.24|
|2nd year subsequent to the balance sheet date|4,493,092.86|10,149,611.12|
|3rd year subsequent to the balance sheet date|280,341.36|280,341.36|
|More than 3 years|1,261,536.12|1,327,099.83|
|Total|42,363,245.26|33,306,081.55|

 (VIII) EVENTS AFTER THE BALANCE SHEET
1. Profit appropriation after the balance sheet date
Unit: RMB
|||
|-|-|
|Item|Amount|
|Proposed distribution of profits or dividends (Note)|251,457,854.70|

Note: Please refer to Note (V) 37.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(IX) OTHER SIGNIFICANT EVENTS
According to a proposal considered and passed at the fifth session of the seventh Board of Directors held on 23 April 2013 and 2012 Annual Shareholders' General Meeting held on 21 May 2013, the Company is approved to merge Shenzhen Chiwan Trains-Grains Terminal Company Limited and Shenzhen Chiwan Terminal Company Limited by absorption.
On 25 January 2014, Economy, Trade and Information Commission of Shenzhen Municipality released Reply to the Company's Proposed Merge of Shenzhen Chiwan Trains-Grains Terminal Company Limited and Shenzhen Chiwan Terminal Company Limited (filed as Shen Jing Mao Xinxi[2014]No.109), agreeing the merger of the Company and Shenzhen Chiwan Terminal Company Limited by absorption.
On 19 February 2014, Shenzhen Chiwan Terminal Company Limited completed the procedure of cancellation of registration.
(X) SEGMENT REPORTING
Subject to the Group's in-house infrastructure, management requirements and internal reporting system, the operation businesses of the Group are classified into three reporting segments determined based on the nature of business. 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 load and unload services, trailer and tugboat business, agency services and other segments.
Segment information is disclosed in accordance with the accounting policies and measurement standards adopted by each segment when reporting to management. The measurement basis is consistent with the accounting and measurement basis in the preparation of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(X) SEGMENT REPORTING - continued
(1) Segment information
Unit: RMB
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Load and unload services||||Trailer and tugboat business||||Agency services||||Unappropriated items||||Inter-segment deduction||||Total||||
||||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013|
|Operating income||||||||||||||||||||||||||
|Rftr|evenue arising|825,037,404.52||812,581,073.79||42,229,355.84||44,075,703.37||8,714,481.23||8,579,015.08||-||-||-||-||875,981,241.59||865,235,792.24||
||rom external|||||||||||||||||||||||||
||ansactions|||||||||||||||||||||||||
|Rftr|evenue arising|-||-||29,613,140.88||30,101,163.60||-||-||-||-||(29,613,140.88)||(30,101,163.60)||-||-||
||rom inter-segment|||||||||||||||||||||||||
||ansactions|||||||||||||||||||||||||
|Ti|otal operating|825,037,404.52||812,581,073.79||71,842,496.72||74,176,866.97||8,714,481.23||8,579,015.08||-||-||(29,613,140.88)||(30,101,163.60)||875,981,241.59||865,235,792.24||
||ncome|||||||||||||||||||||||||
|Reconciling items:||||||||||||||||||||||||||
|Operating Income in the financial statements||||||||||||||||||||||875,981,241.59||865,235,792.24||
|Operating cost||435,215,993.40||367,670,318.70||56,639,023.46||52,073,451.53||424,247.16||579,670.06||-||-||(29,613,140.88)||(30,101,163.60)||462,666,123.14||390,222,276.69||
|Sp|egment operating|389,821,411.12||444,910,755.09||15,203,473.26||22,103,415.44||8,290,234.07||7,999,345.02||-||-||-||-||413,315,118.45||475,013,515.55||
||rofits|||||||||||||||||||||||||
|R|econciling items:|||||||||||||||||||||||||
|Business taxes andsurcharges||2,255,440.28||1,644,303.54||17,399.20||218,704.17||1,523,058.63||839,566.21||-||-||-||-||3,795,898.11||2,702,573.92||
|Gae|eneral and|53,719,550.44||48,148,208.97||5,550,019.53||4,211,776.11||4,249,932.21||3,700,812.00||14,346,177.01||17,795,034.94||-||-||77,865,679.19||73,855,832.02||
||dministrative|||||||||||||||||||||||||
||xpenses|||||||||||||||||||||||||
|F|inancial expenses|22,579,184.95||7,210,167.11||(445,377.43)||(308,596.88)||5,662.10||117,784.16||15,056,293.32||5,729,833.65||-||-||37,195,762.94||12,749,188.04||
|Impairment lossesof assets||777,550.40||(194,356.41)||-||-||(25,381.49)||(17,968.57)||-||161,950.98||-||-||752,168.91||(50,374.00)||
|Investment Income||-||-||-||-||-||-||44,428,745.69||46,022,294.05||-||-||44,428,745.69||46,022,294.05||
|Operating profit||310,489,685.05||388,102,431.88||10,081,431.96||17,981,532.04||2,536,962.62||3,359,151.22||15,026,275.36||22,335,474.48||-||-||338,134,354.99||431,778,589.62||
|Ni|on-operating|4,605,897.44||1,420,585.23||0.08||14,983.09||-||220,565.00||-||-||-||-||4,605,897.52||1,656,133.32||
||ncome|||||||||||||||||||||||||
|Non-operatingexpenses||87,464.08||176,885.12||6,252.57||5,160.06||50.00||-||-||-||-||-||93,766.65||182,045.18||
|G|ross profit|315,008,118.41||389,346,131.99||10,075,179.47||17,991,355.07||2,536,912.62||3,579,716.72||15,026,275.36||22,335,474.48||-||-||342,646,485.86||433,252,678.26||
|Income taxexpenses||48,340,625.19||54,681,616.29||2,518,785.87||4,500,851.86||408,193.79||361,213.18||1,972,722.15||(5,364,544.42)||-||-||53,240,327.00||54,179,136.91||
|N|et profit|266,667,493.22||334,664,515.70||7,556,393.60||13,490,503.21||2,128,718.83||3,218,503.54||13,053,553.21||27,700,018.90||-||-||289,406,158.86||379,073,541.35||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(X) SEGMENT REPORTING - continued
(1) Segment information - continued
Unit: RMB
|||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Load and unload services||||Trailer and tugboat business||||Agency services||||Unappropriated items||||Inter-segment deduction||||Total||||
||||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013||Jan.-Jun.2014||Jan.-Jun.2013|
||Total segment|-||-||-||-||-||-||-||-||-||-||-||-||
||assets|||||||||||||||||||||||||
|Total assets inthe financialstatements||4,991,991,603.94||5,806,666,989.79||172,748,616.55||222,247,694.98||40,322,870.71||48,080,943.88||7,804,234,381.96||6,094,397,156.12||(5,538,870,859.79)||(4,760,728,111.10)||7,470,426,613.37||7,410,664,673.67||
|Total segmentliabilities||-||-||-||-||-||-||-||-||-||-||-||-||
|Total liabilitiesin the financialstatements||1,235,680,553.70||2,125,043,072.63||115,183,687.62||123,897,596.45||31,794,400.13||33,930,756.73||2,590,738,397.08||3,349,678,277.47||(1,269,782,761.47)||(2,833,782,020.00)||2,703,614,277.06||2,798,767,683.28||
|Supplementaryinformation||-||-||-||-||-||-||-||-||-||-||-||-||
|Depreciation||88,518,473.94||78,470,999.06||5,355,948.27||5,509,443.22||375,822.75||572,396.08||89,145.61||71,783.20||-||-||94,339,390.57||84,624,621.56||
|Amortization||22,582,683.48||23,417,987.16||8,748.12||8,748.30||-||-||680,046.54||438,533.87||-||-||23,271,478.14||23,865,269.33||
|Interest income||1,945,599.49||196,544.57||2,699.22||1,553.10||4,992.16||3,484.14||3,908,611.91||1,082,206.71||-||-||5,861,902.78||1,283,788.52||
||Interest expense|7,653,282.94||5,893,725.19||||-||||||29,107,068.98||19,254,389.95||-||-||36,760,351.92||25,148,115.14||
||Investment|-||-||-||-||-||-||42,846,690.90||46,022,294.05||-||-||42,846,690.90||46,022,294.05||
||income from|||||||||||||||||||||||||
||long-term|||||||||||||||||||||||||
||equity|||||||||||||||||||||||||
||investment|||||||||||||||||||||||||
||under equity|||||||||||||||||||||||||
||method|||||||||||||||||||||||||
|Long-termequityinvestment||-||-||-||-||-||-||1,587,928,734.31||1,557,329,515.87||-||-||1,587,928,734.31||1,557,329,515.87||
|Non-currentassets otherthan long-termequityinvestment||4,519,642,193.21||4,622,637,236.09||139,772,769.20||146,549,439.83||17,561,091.18||18,328,397.14||207,304,061.95||223,458,914.75||(157,909,567.98)||(157,909,567.98)||4,726,370,547.56||4,853,064,419.83||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(X) SEGMENT REPORTING - continued
(2) Segment revenue from external transactions by source and non-current assets by geographical location
Unit: RMB
|||||
|-|-|-|-|
|Item||Jan.-Jun.2014|Jan.-Jun.2013|
|Revenue from external transactions with domestic|873,585,381.02||862,019,169.71|
|customers||||
|Revenue from external transactions with Hong Kong|2,395,860.57||3,216,622.53|
|customers||||
|Sub-total|875,981,241.59||865,235,792.24|

 Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Non-current assets located in local country|4,661,102,214.29|4,703,349,975.80|
|Non-current assets located in Hong Kong|36,914.72|44,343.54|
|Sub-total|4,661,139,129.01|4,703,394,319.34|

 (3) Degree of reliance on major customers
The revenue derived from the top two clients of the Group in load and unload services is RMB319,551,472.78, occupying36.48% of the Group's total revenue.
(XI) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Group's major financial instruments include currency funds, equity and debt investments, borrowings, account receivables, account payables etc. Details of these financial instruments are disclosed in Note (V). The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure the risks are monitored at a certain level.
1. Risk management objectives and policies
The Group's risk management objectives are to achieve proper balance between risks and yield, minimize the adverse impacts of risks on the Group's operation performance, and maximize the benefits of the shareholders and other equity investors. Based on these risk management objectives, the Group's basic risk management strategy is to identify and analyze the industry's exposure to various risks, establish appropriate bottom line for risk tolerance, implement risk management, and monitors these exposures to ensure the risks are monitored at a certain level.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XI) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.1 Market risk
1.1.1. Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The Group's exposure to the currency risk is primarily associated with USD and HKD. Several of the Group's subsidiaries have purchases and sales denominated in HKD while the Group's other principal activities are denominated and settled in RMB. As at 30 June 2014, the balance of the Group's assets and liabilities are both denominated in RMB, except that balance of assets set out below is in HKD and USD. Currency risk arising from the foreign currency balance of assets and liabilities may have impact on the Group's performance.
Unit: RMB
|||||
|-|-|-|-|
|Item|Closing balance||Opening balance|
|Cash and cash equivalents|203,635,169.25|103,935,039.66||
|- HKD|36,299,546.14|31,017,228.58||
|- USD|167,335,623.11|72,916,292.09||
|- RMB|-|1,518.99||
|Accounts receivable|45,325,903.33|22,875,401.14||
|- HKD|750,947.10|4,985,052.96||
|- USD|44,574,956.23|9,937,095.08||
|- RMB|-|7,953,253.10||
|Short-term borrowings|555,660,000.00|550,340,000.00||
|- HKD|555,660,000.00|550,340,000.00||
|Accounts payable|5,235,160.95|1,953,953.35||
|- HKD|4,373,142.47|873,982.40||
|- USD|862,018.48|-||
|- RMB|-|1,079,970.95||

 The Group closely monitors the effects of changes in the foreign exchange rates on the Group's currency risk exposures, to minimize the company's currency risk. According to the current risk exposure and judgment of the exchange rate movements, management considers the probable loss resulted from foreign exchange rate fluctuation to be fairly low.
1.1.2. Interest rate risk
The Group's interest rate risk arises from debt with interests, such as bank loan. The floating interest rate of financial liability makes the Group confronted with interest rate risk of cash flows. And the fixed interest rate of financial liability makes the Group confronted with interest rate risk of fair value. The Group determines the relative proportion of fixed interest rate and floating interest rate according to the prevailing market conditions.
The financial department of the Group has been responsible for monitoring the interest rate. The
increase of interest rate could enhance the cost of new interest-bearing debts and that of
outstanding floating interest-bearing debts, which has material adverse effect on the financial
performance of the Group. The management would make prompt responses to the latest market
conditions, including obtaining fixed rate loan or adjusting financial leverage ratio, etc.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XI) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.2. Credit risk
As at 30 June 2014, the Group's maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties and financial guarantees issued by the Group is arising from the carrying amount of the respective recognized financial assets as stated in the consolidated balance sheet. For financial instruments measured at fair value, the carrying amount reflects the exposure to risks but not the maximum exposure to risks; the maximum exposure to risks would vary according to the future changes in fair value. In order to minimize the credit risk, the Group has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the management of the Group considers that the Group's credit risk is significantly reduced.
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings.
The Company adopted necessary policies to make sure that all clients and customers are attributed with merit credit records.
1.3. Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group's operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilization of bank borrowings and ensures compliance with loan covenants.
Most of the Group's bank borrowings are short-term borrowings. As at 30 June 2014, the Group has net current liabilities of RMB445,217,913.66 (2013: RMB507,618,546.34). The Group's management is confident that short-term borrowings will be rolled over or replaced by a new financing channel when due. In addition, the Group has available unutilized bank loan facilities of approximatelyRMB4,251,052,000(2013: RMB4,094,903,500.00). Consequently, the management believes that the Group is not exposed to significant liquidity risks. In addition, other factors that have been taken into account in the disclosure of how to mitigate liquidity risk should also be disclosed.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XI) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.3. Liquidity risk - continued
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||Book value|Total amount|Within one year|1-5 years||More than 5|
||||||||years|
||Cash at bank and on hand|782,831,116.07|782,831,116.07|782,831,116.07|-|-||
||Notes receivable|5,406,070.00|5,406,070.00|5,406,070.00|-|-||
||Accounts receivable|288,204,328.27|288,204,328.27|288,204,328.27|-|-||
||Interest receivable|143,550.00|143,550.00|143,550.00|-|-||
||Other receivables|28,010,352.28|28,010,352.28|28,010,352.28|-|-||
||Short-term borrowings|555,660,000.00|567,229,046.90|567,229,046.90|-|-||
||Available-for-sale financial|5,540,000.00|5,540,000.00|5,540,000.00|-|-||
||assets|||||||
||Accounts payable|81,009,113.10|81,009,113.10|81,009,113.10|-|-||
||Interest payable|24,980,280.71|24,980,280.71|24,980,280.71|-|-||
||Dividends payable|328,666,010.79|328,666,010.79|328,666,010.79|-|-||
||Other payable|93,931,030.52|93,931,030.52|93,931,030.52|-|-||
||Other current liabilities|400,000,000.00|420,000,000.00|420,000,000.00|-|-||
||Bonds payable|994,303,561.66|1,189,264,660.48|49,708,089.86|1,139,556,570.61|-||

 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 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;• The fair value of derivative instruments are determined with reference to quoted market prices. The management considers that the book value of financial assets and liabilities measured at amortized cost is approximately equal to the fair value of financial assets and liabilities.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XI) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
2. Fair value - continued
Fair value hierarchy
The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Levels 1 to 3 based on the degree to which the fair value is observable.
Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); Level 3 - inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|||Closing Balance|||||||
||||Level 1||Level 2||Level 3||Total|
||Held-for-trading financial assets:|-||-||-||-||
||- Derivative financial assets|-||-||-||-||
||Available-for-sale financial assets:|-||-||-||-||
||- Equity instruments|5,540,000.00||-||-||5,540,000.00||
||Total|5,540,000.00||-||-||5,540,000.00||
||Held-for-trading financial liabilities:|-||-||-||-||
||- Derivative financial liabilities|-||-||-||-||
||Total|-||-||-||-||

 Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|||Opening Balance|||||||
||||Level 1||Level 2||Level 3||Total|
||Held-for-trading financial assets:|-||-||-||-||
||－ Derivative financial assets|-||-||-||-||
||Available-for-sale financial assets:|-||-||-||-||
||－ Equity instruments|5,580,000.00||-||-||5,580,000.00||
||Total|5,580,000.00||-||-||5,580,000.00||
||Held-for-trading financial liabilities:|-||-||-||-||
||－ Derivative financial liabilities|-||-||-||-||
||Total|-||-||-||-||

 There are no transfers between Level 1 and Level 2 for the fair value measurements of the Group's financial assets and financial liabilities in the current year and in the prior year.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XI) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
3. Sensitivity analysis
The Group adopts sensitivity analysis techniques to analyze how the entity's profit and loss for the period and shareholders 'equity would have been affected by changes in the relevant risk variables that were reasonably possible. As it is unlikely that risk variables will change in an isolated manner, and the interdependence between risk variables will have significant effect on the amount ultimately influenced by the changes in a single risk variable, the following items are based on the assumption that each risk variable has changes on a stand-alone basis.
3.1. Currency risk
3.1.1 The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and hedges of a net investment in a foreign operation are highly effective.
3.1.2 The Group does not conduct sensitivity analysis of the subsidiary with HKD as its functional currency, as it is exposed to minimal foreign exchange risk. The table below is a sensitivity analysis of RMB functional currency of the Company and its subsidiaries to foreign exchange risk. On the basis of the above assumption, where all other variables are held constant, the reasonably possible changes in the foreign exchange rate may have the following pre-tax effect on the profit or loss for the period or equity:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|Item||Changes in||Jan.-Jun.2014||||Jan.-Jun.2013|||
|||exchange|Effect on profits|||Effect on|Effect on profits|||Effect on|
|||rate||||shareholders' equity||||shareholders' equity|
|Allforeigncurrencies|5%appreciationagainstRMB||(15,596,704.42)||(15,596,704.42)||(43,863,446.03)||(43,863,446.03)||
|Allforeigncurrencies|5%depreciationagainstRMB||15,596,704.42||15,596,704.42||43,863,446.03||43,863,446.03||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XI) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
3. Sensitivity analysis - continued
3.2. Sensitivity analysis on interest rate risk: - continued
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 or equity:
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item||Changes in interest rate||Jan.-Jun.2014|||Jan.-Jun.2013||
||||Effect on profits|||Effect on|Effect on profits|Effect on|
|||||||shareholders'||shareholders'|
|||||||equity||equity|
||Floating rate loan|Increase by 1%|(71,136.68)||(71,136.68)||(79,062.12)|(79,062.12)|
||Floating rate loan|Decrease by 1%|71,136.68||71,136.68||79,062.12|79,062.12|

 (XII) NOTES TO THE FINANCIAL STATEMENTS
1. Accounts receivable
(1) Disclosure of accounts receivable by categories:
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Carrying amount||Bad debt provision||Carrying amount||Bad debt provision||
|Item|||||||||
|||Proportion||Proportion||||Proportion|
||Amount||Amount||Amount|Proportion (%)|Amount||
|||(%)||(%)||||(%)|
|Accounts receivable that are|-|-|-|-|-|-|-|-|
|individually significant and for which|||||||||
|bad debt provision has been assessed|||||||||
|individually(Note)|||||||||
|Accounts receivable for which bad debt provision has been assessed by portfolios|||||||||
|Portfolio 1|393,091.00|1.82|-|-|340,769.83|1.87|-|-|
|Portfolio 2|21,230,564.43|98.18|-|-|17,876,763.45|98.13|-|-|
|Subtotal of portfolios|21,623,655.43|100.00|-|-|18,217,533.28|100.00|-|-|
|Total|21,623,655.43|100.00|-|-|18,217,533.28|100.00|-|-|

 Note: Top five balances of accounts receivable are deemed as individually significant accounts receivable by the Group.
Aging analysis of accounts receivable is as follows:
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance|||||Opening balance|||||
|||Carrying amount||Proportion (%)|Bad debtprovision|Book value|Carryingamount||Proportion (%)||Bad debt|Book value|
||||||||||||provisio||
||||||||||||n||
||Within 1 year|21,623,655.43||100.00|-|21,623,655.43|18,217,533.28||100.00|-||18,217,533.28|

 Accounts receivable portfolios for which bad debt provision has been assessed using the aging
analysis approach:
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance|||||Opening balance|||||
|||Carrying amount||Proportion (%)|Bad debtprovision|Book value|Carryingamount||Proportion (%)||Bad debt|Book value|
||||||||||||provisio||
||||||||||||n||
||Within 1 year|21,230,564.43||100.00|-|21,230,564.43|17,876,763.45||100.00|-||17,876,763.45|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XII) NOTES TO THE FINANCIAL STATEMENTS - continued
1. Accounts receivable - continued
(2) Top five companies with the largest balances of accounts receivable:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Name of entity||Relationship withthe Company|Amount|Aging||Proportion of|
|||||||the amount to|
|||||||the total|
|||||||accounts|
|||||||receivable (%)|
||Customer G|Customer|3,915,972.08|Within 1 year|18.11||
||Customer H|Customer|16,538.00|Within 1 year|0.08||
||Customer I|Customer|15,950.00|Within 1 year|0.07||
||Customer J|Customer|13,156.00|Within 1 year|0.06||
||Customer K|Customer|2,930.00|Within 1 year|0.01||
||Total||3,964,546.08||18.33||

 (3) As at 30 June 2014, no balances included in above accounts receivable are due from the shareholders of the Company who hold over5% voting right. Please refer to Note (XII) 6(1) for receivables from related parties.
2. Other receivables
(1) Disclosure of other receivables by categories:
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Carrying amount||Bad debt provision||Carrying amount||Bad debt provision||
|Category|||||||||
|||Proportion||Proportion||Proportion||Proportion|
||Amount||Amount||Amount||Amount||
|||(%)||(%)||(%)||(%)|
|Other receivables that are individually|-|-|-|-|-|-|-|-|
|significant and for which bad debt provision|||||||||
|has been assessed individually|||||||||
|Other receivables for which bad debt provision has been assessed by portfolios|||||||||
|Portfolio 1|836,501,703.56|99.89|-|-|825,316,780.47|99.95|-|-|
|Portfolio 2|882,469.49|0.11|383,456.60|43.45|383,456.60|0.05|383,456.60|100.00|
|Subtotal of portfolios|837,384,173.05|100.00|383,456.60|0.05|825,700,237.07|100|383,456.60|0.04|
|Total|837,384,173.05|100.00|383,456.60|0.05|825,700,237.07|100|383,456.60|0.04|

 Note: Top five balances of other receivables are deemed as individually significant other receiv- ables by the Group.
Aging analysis of other receivables is as follows:
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance||||||Opening balance|||||||
|||Carrying amount||Proportio|n||Bad debt|Book value|Carrying amount|P|roporti|on||Bad debt|Book value|
||Aging|||(%)|||provision||||(%)|||provision||
||Within 1 year|836,293,554.54||99.87||-||836,293,554.54||99.51|||-||821,613,575.43|
||More than 1 year|622,161.91||0.07||-||622,161.91||0.11|||-||884,236.88|
|n|More than 2 years but|50,000.00||0.01||-||50,000.00||0.10|||-||839,166.12|
||ot exceeding 3 years|||||||||||||||
||More than 3 years|418,456.60||0.05||383,456.60||35,000.00||0.29|||383,456.60||1,979,802.04|
|T|otal|837,384,173.05||100.00||383,456.60||837,000,716.45||100.00|||383,456.60||825,316,780.47|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XII) NOTES TO THE FINANCIAL STATEMENTS - continued
2. Other receivables - continued
Disclosure of other receivables by categories: - continued
Other receivables portfolios for which bad debt provision has been assessed using the aging analysis:
Unit: RMB
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance||||||||Opening balance|||||||
|||Carrying amount||Pr|oportio|n||Bad debt|Book value|Carrying amount||P|roportio|n||Bad debt|Book value|
||||||(%)|||provision|||||(%)|||provision||
|W|ithin 1 year|499,012.89||56.55|||-||499,012.89|-||-|||-||-|
|M|ore than 1 year|-||-|||-||-|-||-|||-||-|
|Me|ore than 2 years but not|-||-|||-||-|-||-|||-||-|
||xceeding 3 years|||||||||||||||||
|M|ore than 3 years|383,456.60||43.45|||383,456.60||-|383,456.60||100.00|||383,456.60||-|
|T|otal|882,469.49||100.00|||383,456.60||499,012.89|383,456.60||100.00|||383,456.60||-|

 (2) Top five companies with the largest balances of other receivables:
Unit: RMB
||||||
|-|-|-|-|-|
|||||Proportion of the|
||Relationship with the|||amount to the total|
|Name of entity||Amount|Aging||
||Company|||accounts|
|||||receivable (%)|
|Dongguan Chiwan Terminal Company|Subsidiary of theCompany|450,000,000.00|Within one year|53.74|
|Limited|||||
||Subsidiary of theCompany|372,000,000.00|Within one year|44.42|
|Dongguan Chiwan Wharf Co., Ltd.|||||
|Shenzhen Chiwan Shipping and|Subsidiary of theCompany|6,500,000.00|Within one year|0.78|
|Transportation Company Limited|||||
||Subsidiary of theCompany|2,835,891.23|Within one year|0.34|
|Chiwan Wharf Holdings (H.K.) Limited|||||
|China Nanshan Development (Group)|Shareholders|1,269,537.37|Within one year|0.15|
|Incorporation|||||
|Total||832,605,428.60||99.43|

 (3) As at 30 June 2014, except for CND Group, no balances included in above other receivables are due from the shareholders of the Company who hold over5% voting right. Please refer to Note (XII) 6(1) for receivables from related parties.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XII) NOTES TO THE FINANCIAL STATEMENTS - continued
3. Long-term equity investments
(1) Categories of long-term equity investments
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Investment in subsidiaries|1,152,288,200.00|-|-|1,152,288,200.00|
|Investment in joint ventures|833,537,997.04|18,909,226.32|15,606,241.62|836,840,981.74|
|Investment in associates|250,040,594.87|723,551.72|-|250,764,146.59|
|Other long-term equity investments|17,037,500.00|-|-|17,037,500.00|
|Subtotal|2,252,904,291.91|19,632,778.04|15,606,241.62|2,256,930,828.33|
|Less: Provision for impairment of|3,128,300.00|-|-|3,128,300.00|
|long-term equity investments|||||
|Net amount|2,249,775,991.91|-|-|2,253,802,528.33|

 As at 30 June 2014, the long-term equity investments of the Company were not subject to restri- ction on disposal or remittance of return on investments.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XII) NOTES TO THE FINANCIAL STATEMENTS - continued
3. Long-term equity investments - continued
(2) Details of long-term equity investments are as follows:
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanation of the||||
||||||||Proportion|||||
|||||||Proportion of||proportion of ownership||Provision for||
||||||||of voting||Provision for|||
|||||Changes||ownership||interests being not||impairment|Cash dividends|
|Investee|Accounting method|Investment cost|Opening balance||Closing balance||power in the||impairment|||
|||||(increase/decrease)||interests in the||consistent with the||losses for the|for the period|
||||||||investee||losses|||
|||||||investee (%)||proportion of voting||period||
||||||||(%)|||||
|||||||||power||||
|Shenzhen Chiwan Terminal Company|Cost method|47,500,000.00|47,500,000.00|-|47,500,000.00|95.00|95.00|N/A|-|-|-|
|Limited||||||||||||
|Shenzhen Chiwan International|Cost method|5,500,000.00|5,500,000.00|-|5,500,000.00|100.00|100.00|N/A|-|-|-|
|Freight Agency Company Limited||||||||||||
|Shenzhen Chiwan Harbor Container|Cost method|250,920,000.00|250,920,000.00|-|250,920,000.00|84.98|84.98|N/A|-|-|-|
|Company Limited||||||||||||
|Shenzhen Chiwan Transportation|Cost method|7,000,000.00|7,000,000.00|-|7,000,000.00|75.00|75.00|N/A|-|-|-|
|Company Limited||||||||||||
|Chiwan Wharf Holdings (H.K.)|Cost method|1,070,000.00|1,070,000.00|-|1,070,000.00|100.00|100.00|N/A|-|-|-|
|Limited||||||||||||
|Shenzhen Chiwan Shipping and|Cost method|24,000,000.00|24,000,000.00|-|24,000,000.00|90.00|90.00|N/A|-|-|-|
|Transportation Company Limited||||||||||||
|Shenzhen Chiwan Trains-Grains|Cost method|33,750,000.00|33,750,000.00|-|33,750,000.00|75.00|75.00|N/A|-|-|-|
|Terminal Company Limited||||||||||||
|Chiwan Container Terminal Company|Cost method|421,023,200.00|421,023,200.00|-|421,023,200.00|51.00|51.00|N/A|-|-|-|
|Limited||||||||||||
|Dongguan Chiwan Wharf Company|Cost method|186,525,000.00|186,525,000.00|-|186,525,000.00|41.45|41.45|N/A|-|-|-|
|Limited||||||||||||
|Dongguan Chiwan Terminal|Cost method|175,000,000.00|175,000,000.00|-|175,000,000.00|43.75|43.75|N/A|-|-|-|
|Company Limited||||||||||||
|China Ocean Shipping Agency|Cost method|13,510,000.00|13,510,000.00|-|13,510,000.00|15.00|15.00|N/A|-|-|-|
|(Shenzhen) Company Limited||||||||||||
|Shenzhen Petro-chemical Industry|Cost method|3,500,000.00|3,500,000.00|-|3,500,000.00|0.26|0.26|N/A|3,117,800.00|-|-|
|(Group) Company Limited.||||||||||||
|Guangdong Guang Jian Group|Cost method|27,500.00|27,500.00|-|27,500.00|0.02|0.02|N/A|10,500.00|-|-|
|Company Limited||||||||||||
|China Merchants Holdings|Equity method|1,875,000.00|13,482,832.15|(1,669,712.31)|11,813,119.84|23.16|23.16|N/A|-|-|-|
|(international) information technology||||||||||||
|company Ltd||||||||||||
|CMBL|Equity method|140,000,000.00|135,452,623.57|1,125,916.74|136,578,540.31|20.00|20.00|N/A|-|-|-|
|China Development Finance Co., Ltd.|Equity method|100,000,000.00|101,105,139.15|1,267,347.29|102,372,486.44|20.00|20.00|N/A|-|-|-|
|China Overseas Harbor Affairs|Equity method|749,655,300.00|833,537,997.04|3,302,984.70|836,840,981.74|40.00|40.00|N/A|-|-|15,606,241.62|
|(Laizhou) Co., Ltd.||||||||||||
|Total|-|-|2,252,904,291.91|4,026,536.42|2,256,930,828.33|-|-|-|3,128,300.00|-|15,606,241.62|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XII) NOTES TO THE FINANCIAL STATEMENTS - continued
3. Long-term equity investments - continued
(3) Investments in joint ventures and associates
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||Proportion of|Proportion of||||||
||||Investee's total|Investee's total|Total net assets at|Total operating||
||ownership|voting power in|||||Net profit for the|
|Investee|||assets at the end of|liabilities at the end|the end of the|income for the||
||interests in the|the investee|||||period|
||||the period|of the period|period|period||
||investee (%)|(%)||||||
|I. Joint ventures||||||||
|China Overseas Harbor|40.00|40.00|2,160,150,180.03|321,135,193.31|1,839,014,986.72|145,188,671.76|46,860,030.68|
|Affairs (Laizhou) Co., Ltd.||||||||
|II. Associates||||||||
|China Merchants Holdings|23.16|23.16|70,069,294.80|12,733,388.25|57,335,906.55|27,546,109.87|(7,209,465.93)|
|(international) information||||||||
|technology company Ltd||||||||
|CMBL|20.00|20.00|2,106,388,578.71|1,421,071,369.53|685,317,209.18|95,202,616.31|5,629,583.70|
|China Development Finance|20.00|20.00|2,431,569,954.93|1,919,367,730.72|512,202,224.22|29,483,450.48|6,336,736.45|
|Co., Ltd.||||||||

(4) Provision for long-term equity investments
Unit: RMB
||||||
|-|-|-|-|-|
||Opening|||Closingbalance|
|Investee||Increase|Decrease||
||balance||||
|Shenzhen Petro-chemical Industry (Group)|3,117,800.00|-|-|3,117,800.00|
|Company Limited|||||
|Guangdong Guang Jian Group Company|10,500.00|-|-|10,500.00|
|Limited|||||
|Total|3,128,300.00|-|-|3,128,300.00|

 4. Operating income and operating costs
(1) Operating income and operating costs
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Principal operating income|93,571,818.18|49,987,231.10|
|Other operating income|15,862,202.03|7,086,751.97|
|Total|109,434,020.21|57,073,983.07|
|Principal operating costs|83,067,572.46|59,994,160.29|
|Other operating costs|578,571.96|697,577.82|
|Total|83,646,144.42|60,691,738.11|

 (2) Principal operating activities (classified by business)
Unit: RMB
||||||
|-|-|-|-|-|
||Jan.-Jun.2014||Jan.-Jun.2013||
|Item|||||
||Operating income|Operating costs|Operating income|Operating costs|
|Load and unload services|93,571,818.18|83,067,572.46|49,987,231.10|59,994,160.29|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XII) NOTES TO THE FINANCIAL STATEMENTS - continued
4. Operating income and operating costs - continued
(3) Other activities
Unit: RMB
||||||
|-|-|-|-|-|
||Jan.-Jun.2014||Jan.-Jun.2013||
|Item|Other operating|Other operating|Other operating|Other operating|
||income|costs|income|costs|
|Lease|9,192,540.77|578,571.96|3,045,432.44|697,577.82|
|Port ancillary services|5,953,954.89|-|3,640,519.18|-|
|Documentation fee|230,754.56|-|220,724.04|-|
|Sales of material|111,287.19|-|159,631.38|-|
|Security fee|373,664.62|-|20,444.93|-|
|Total|15,862,202.03|578,571.96|7,086,751.97|697,577.82|

 (4) Operating income from the Company's top five customers
Unit: RMB
||||
|-|-|-|
|||Proportion to total|
|Name of customer|Operating income|operating income of the|
|||Company (%)|
|Customer M|22,192,664.06|20.28|
|Customer N|16,453,212.87|15.03|
|Customer H|15,424,003.11|14.09|
|Customer O|11,669,435.27|10.66|
|Customer P|10,570,101.98|9.66|
|Total|76,309,417.29|69.72|

 5. Investment income
(1) Details of investment income
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun.2014|Jan.-Jun.2013|
|Income of long-term equity investments under cost method|-|-|
|Income of long-term equity investments under equity method|19,632,778.04|17,735,893.39|
|Income from disposal of long-term equity investment|-|-|
|Investment income on available-for-sale financial assets, etc.|380,000.00|-|
|Others|1,202,054.79|-|
|Total|21,214,832.83|17,735,893.39|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XII) NOTES TO THE FINANCIAL STATEMENTS - continued
5. Investment income - continued
(2) Income of long-term equity investments under equity method
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Investee||Jan.-Jun.2014|Jan.-Jun.2013||Reasons for increases or|
||||||decreases in the current|
||||||compared to the prior period|
||China Overseas Harbour Affairs (Laizhou)|18,909,226.32|16,091,208.63|Net income of investeefluctuates.||
||Co., Ltd|||||
|CMBL||1,125,916.74|1,406,013.54|Net income of investeefluctuates.||
||China Merchants Holdings (international)|(1,669,712.31)|238,671.22|Net income of investeefluctuates.||
||information technology company Ltd|||||
|China Development Finance Co., Ltd||1,267,347.29|-|Net income of investeefluctuates.||
||Total|19,632,778.04|17,735,893.39|||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
(XII) NOTES TO THE FINANCIAL STATEMENTS - continued
6. Related party transactions
(1) Amounts due from/to related parties
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item||Related parties||Closing balance|Opening balance|
||Item|||||
||Interests|Shenzhen Chiwan International Freight Agency Company Limited||218,084.00|218,084.00|
||receivable|||||
|Accountsreceivable||Shekou Container Terminals Limited||74,500.00|107,750.00|
||||CPSB|6,118,875.00|110,353.83|
||||China Ocean Shipping Agency (Shenzhen) Company Limited|283,664.00|122,666.00|
|||Total||6,477,039.00|340,769.83|
||Other|Dongguan Chiwan Terminal Company Limited||450,000,000.00|393,700,000.00|
||receivables|||||
||||Dongguan Chiwan Wharf Company Limited|372,000,000.00|417,000,000.00|
||||Shenzhen Chiwan Shipping and Transportation Company Limited|6,500,000.00|10,000,000.00|
||||Chiwan Wharf Holdings (H.K.) Limited|2,835,891.23|2,835,771.65|
||||CPSB|135,621.91|135,621.91|
||||Nanshan Group|1,269,537.37|-|
||||Chiwan Container Terminal Company Limited|195,711.00|-|
||||Others|272,090.59|24,536.15|
||||Total|833,208,852.10|823,695,929.71|
||Long-term|Chiwan Wharf Holdings (H.K.) Limited||11,004,284.75|11,004,284.75|
||receivables|||||
|Accountspayable|Accounts||Xuqin|1,594,358.00|1,841,926.00|
|||Nanshan Group||818,972.60|1,764,168.70|
||||Shenzhen Chiwan Transportation Company Limited|452,812.00|335,665.00|
||||Shekou Container Terminals Limited|180,000.00|120,000.00|
||||Total|3,046,142.60|4,061,759.70|
|Dividendspayable|||Shenzhen Malai Warehouse Co., Ltd|40,621,923.73|-|
||||Nanshan Group|104,020,496.27|-|
||||Total|144,642,420.00|-|
||Other|Chiwan Container Terminal Company Limited||312,107,296.72|145,868,442.09|
||payables|||||
||||Shenzhen Chiwan Trains-Grains Terminal Company Limited|93,816,763.75|79,646,554.60|
||||Shenzhen Chiwan Transportation Company Limited|40,726,053.61|45,365,261.99|
||||Shenzhen Chiwan Harbor Container Company Limited|128,723,196.66|50,853,300.94|
||||Shenzhen Chiwan Terminal Company Limited|50,562,128.90|43,211,371.33|
||||Dongguan Chiwan Wharf Company Limited|24,977,032.01|13,241,025.98|
||||Shenzhen Chiwan International Freight Agency Company Limited|2,601,197.44|4,447,292.32|
||||Shenzhen Chiwan Shipping and Transportation Company Limited|742,834.97|1,426,865.36|
||||Dongguan Chiwan Terminal Company Limited|434,998.81|280,246.26|
||||Chiwan Wharf Holdings (H.K.) Limited|252,346.00|596,348.85|
||||China Merchants Holdings (International) Information Technology|6,400.00|6,400.00|
||||Company Ltd.|||
||||Total|654,950,248.87|384,943,109.72|
|Interestspayable|Interests||Shenzhen Chiwan Trains-Grains Terminal Company Limited|522,448.63|1,462,499.93|
|||Shenzhen Chiwan Shipping and Transportation Company Limited||343,713.01|1,839,083.26|
||||Shenzhen Chiwan Terminal Company Limited|481,549.07|774,550.04|
||||Chiwan Container Terminal Company Limited|148,345.89|494,250.00|
||||Total|1,496,056.60|4,570,383.23|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2014
Note: The Company collectively manages and coordinates the use of the capital within the Group. Various subsidiaries save their money with the Company, or apply for fund when needed. The Company collects fund usage expenses based on the actual financing costs incurred. (2) Guarantee with related parties
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||Inception date of|Expiration date of|Whether guarantee|
|The guarantor|The principal|Guaranteed amount||||
||||guarantee|guarantee|has been fulfilled|
||Dongguan Chiwan Terminal|100,000,000.00|26/04/2012|07/02/2015|No|
||Company Limited|||||
||Shenzhen Chiwan Harbor|100,000,000.00|26/04/2012|07/02/2015|No|
||Container Company Limited|||||
|||200,000,000.00||||
|Total||||||

7. Supplementary information to the cash flow statement
Unit: RMB
||||
|-|-|-|
|Supplementary information|Jan.-Jun.2014|Jan.-Jun.2013|
|1. Reconciliation of net profit to cash flows from operating activities:|||
|Net profits|(3,202,090.09)|(11,712,029.85)|
|Add: Provision for impairment losses of assets|-|161,950.98|
|Depreciation of fixed assets|4,868,979.65|6,503,092.74|
|Depreciation and amortization of investment property|479,717.16|479,702.82|
|Amortization of intangible assets|1,741,518.11|1,589,686.50|
|Amortization of long-term prepaid expenses|439,712.16|393,389.38|
|Losses on disposal of fixed assets, intangible assets and|2,374.22|-|
|other long-term assets|||
|Financial expenses|44,014,951.18|29,515,821.58|
|Loss (Gains) arising from investments|(21,214,832.83)|(17,735,893.39)|
|Decrease (Increase) in deferred tax assets|3,282,922.15|(9,789,307.72)|
|Decrease in inventories|33,375.24|285,248.18|
|Decrease (Increase) in operating receivables|(14,874,558.13)|398,827,647.00|
|Increase (Decrease) in operating payables|264,313,268.92|(528,801,618.58)|
|Net cash flows from operating activities|279,885,337.74|(130,282,310.36)|
|2. Net changes in cash and cash equivalents:|||
|Closing balance of cash|611,353,388.32|400,200,343.02|
|Less: Opening balance of cash|465,329,241.75|149,792,424.85|
|Net increase in cash and cash equivalents|146,024,146.57|250,407,918.17|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION TO THE CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2014
1. BREAKDOWN OF EXTRAORDINARY GAINS AND LOSSES
Unit: RMB
||||
|-|-|-|
|Item|Amounts|Description|
|Profit or loss on disposal of non-current assets|(74,463.56)||
|Tax refunds or reductions with ultra vires approval or without official approval|-||
|documents|||
|Government grants recognized in profit or loss (except for grants that are closely|4,290,189.30||
|related to the Company's business and are in amounts and quantities fixed in|||
|accordance with the national standard)|||
|Money lending income earned from non-financial institutions in profit or loss|-||
|The excess of attributable fair value of identifiable net assets over the consideration|-||
|paid for subsidiaries, associates and joint ventures|||
|Profit or loss on exchange of non-monetary assets|-||
|Profit or loss on entrusted investments or assets management|-||
|Impairment losses provided for each asset due to force majeure, e.g. acts of God|-||
|Profit or loss on debt restructuring|-||
|Business restructuring expenses, e.g., expenditure for layoff of employees, integration|-||
|expenses, etc.|||
|Profit or loss relating to the unfair portion in transactions with unfair transaction price|-||
|Net profit or loss of subsidiaries recognized as a result of business combination of|-||
|enterprises under common control from the beginning of the period up to the business|||
|combination date|||
|Profit or loss arising from contingencies other than those related to normal operating|-||
|business|||
|Profit or loss on changes in the fair value of financial assets and financial liabilities|-||
|held for trading and investment income on disposal of held-for-trading financial|||
|assets, held-for-trading financial liabilities and available-for-sale financial assets,|||
|other than the effective hedging activities relating to normal operating business|||
|Reversal of provision for accounts receivable that are tested for impairment losses|-||
|individually|||
|Profit or loss on entrusted loans|-||
|Profit or loss on changes in the fair value of investment properties that are|-||
|subsequently measured using the fair value model|||
|Effects on profit or loss of one-off adjustment to profit or loss for the period according|-||
|to the requirements by tax laws and accounting laws and regulations|||
|Custodian fees earned from entrusted operation|-||
|Other non-operating income or expenses other than above|296,405.13||
|Other profit or loss that meets the definition of non-recurring profit or loss|-||
|Tax effects|(938,290.52)||
|Effects of minority interest (after tax)|(1,329,048.78)||
|Total|2,244,791.57||

2. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
The return on net assets and EPS have been prepared by Shenzhen Chiwan Wharf Co., Ltd (hereinafter "the Company") in accordance with Information Disclosure and Presentation Rules for Companies Making Public Offering No. 9 - Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revised 2010) issued by China Securities Regulatory Commission.
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Profits incurred in the current period|||Weighted average return on net|EPS|||
||||assets (%)|Basic EPS||Diluted EPS|
||Net profit for the current period attributable to|5.85||0.365|0.365||
||ordinary shareholders||||||
||Net profit attributable to ordinary shareholders|5.79||0.362|0.362||
||after extraordinary gains and losses||||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION TO THE CASH FLOW STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2014
3. ABNORMAL FINANCIAL STATEMENTS ITEMS ("F/S ITEMS") AND EXPLANATION OF REASONS
Unit: RMB
|||||||
|-|-|-|-|-|-|
||F/S items|Closing balance|Opening balance|Change by|Cause for the changes|
|1|Currency funds|782,831,116.07|715,539,516.48|9%|Cash surplus from operating activities|
|2|Notes receivable|5,406,070.00|200,000.00|2603%|New notes receivable in the current period|
|3|Dividends receivable|-|3,334,985.50|-100%|Dividends received in the current period|
|4|Other receivables|28,010,352.28|12,579,679.85|123%|Agency funds receivable increased|
|5|Other current assets|13,923,960.19|15,672,486.73|-11%|Input tax to be deducted decreased|
||Long-term equityinvestments|1,601,837,934.31|1,574,597,485.03|2%|Long-term equity investments in jointly-run andassociated enterprises increased|
|6||||||
||Fixed assets|3,399,124,607.02|2,828,481,942.32|20%|The Machong Berth 4# and 5# supporting projectwas completed and carried forward|
|7||||||
||Construction in progress|24,959,918.71|615,064,297.08|-96%|The project was completed and transferred intofixed assets|
|8||||||
||Other non-current assets|98,623,826.09|174,669,665.62|-44%|The prepayment for land was transferred intointangible assets|
|9||||||
|10|Short-term borrowings|555,660,000.00|550,340,000.00|1%|Book-keeping exchange rate fluctuations|
|11|Taxes payable|44,454,427.26|61,282,690.48|-27%|The actual income tax paid in the current period|
||Interest payable|24,980,280.71|36,813,185.09|-32%|The interest on short-term financing bills andcorporate bonds was paid|
|12||||||
||Dividends payable|328,666,010.79|77,208,156.09|326%|Provisions were made for dividends payable asresolved by the general meeting|
|13||||||
||Other payables|93,931,030.54|59,144,474.30|59%|The engineering quality assurance retention fundspayable and the collections & payments on behalfof others increased in the current period|
|14||||||
||Non-current liabilities duewithin one year|4,661,924.52|4,676,624.27|0%||
|15||||||
||Other current liabilities|400,000,000.00|500,000,000.00|-20%|The Company issued short-term financing bills ofRMB 400 million and repaid short-term financingbills of RMB 500 million this year|
|16||||||
|17|Bonds payable|994,303,561.66|993,510,137.00|0%||
||F/S items|Jan.-Jun.2014|Jan.-Jun.2013|Change by|Cause for the changes|
|18|Operating income|875,981,241.59|865,235,792.24|1%|The bulk cargo handling income increased|
|19|Operating costs|462,666,123.14|390,222,276.89|19%|Labor cost and depreciation increased|
||Business taxes andsurcharges|3,795,898.11|2,702,573.92|40%|The revenues taxable for business tax increased|
|20||||||
||Financial expenses|37,195,762.94|12,749,188.04|192%|The average occupation amount of interest-borneloans, the loan interest rates and the exchange losson RMB depreciation increased in the currentperiod|
|21||||||
|22|Non-operating income|4,605,897.52|1,656,132.51|178%|Governmental subsidies were received|
||Non-operating expenses|93,766.65|182,045.18|-48%|The loss on disposal of non-current assetsdecreased|
|23||||||