SHENZHEN CHIWAN
PETROLEUM SUPPLY BASE CO., LTD.
Financial Statements and Auditor's Report
for the year ended 31 December 2014
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2014
Contents Pages Auditor's report 1 - 2 The Company's and consolidated balance sheets 3 - 4 The Company and consolidated income statements 5 - 6 The Company and consolidated cash flow statements 7 - 8 The Company and consolidated statements of changes in shareholders' equity 9 - 10 Notes to the financial statements 11-95
AUDITOR'S REPORT
De Shi Bao(Shen) Zi (15) No.P0183 To the Shareholders of
Shenzhen Chiwan Petroleum Supply Base Co., Ltd.
We have audited the accompanying financial statements of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (the "Company"), which comprise the Company's and consolidated balance sheets as at 31 December 2014, and the Company's and consolidated income statements, the Company's and consolidated statements of changes in shareholders' equity and the Company's and consolidated cash flow statements for the year then ended, and the notes to the financial statements
1. Management's responsibility for the financial statements
Management of the Company is responsible for the preparation and fair presentation of these financial statements. This responsibility includes: (1) preparing the financial statements in accordance with Accounting Standards for Business Enterprises to achieve fair presentation of the financial statements; (2) designing, implementing and maintaining internal control which is necessary to enable that the financial statements are free from material misstatement, whether due to fraud or error.
2. Auditor's responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We conducted our audit in accordance with China Standards on Auditing. Those Standards on require that we comply with the Code of Ethics for Chinese Certified Public Accountants and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing audit procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider the internal control relevant to the preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
3. Opinion
In our opinion, the financial statements of the Company present fairly, in all material respects, the Company's and consolidated financial position as of 31 December 2014, and the Company's and consolidated results of operations and cash flows for the year then ended in accordance with Accounting Standards for Business Enterprises.
Deloitte Touche Tohmatsu Certified Chinese Certified Public Accountant Public AccountantsLLP
Shanghai, China Huang Yue
Chinese Certified Public Accountant LiYingjie
10 March 2015
The auditor's report and the accompanying financial statements are English translations of the Chinese auditor's report and financial statements prepared in accordance with Accounting Standards for Business Enterprises. These financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles and practices generally accepted in other countries and jurisdictions. Where the English version does not conform to the Chinese version, the Chinese version prevails.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
AT 31 DECEMBER 2014
Consolidated Balance Sheet
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Opening|||||||Opening|
|ITEM||Notes||Closing balance|||ITEM||Notes||Closing balance|||
|||||||balance(restated)|||||||balance(restated)|
|Current Assets:|||||||Current Liabilities:|||||||
|Cash and bank|(V)1||375,328,861.18||299,910,369.63|||(V)17||10,358,009.24||10,629,691.02||
||||||||Accounts payable|||||||
|balances||||||||||||||
|Notes receivable|(V)2||10,000,000.00||-||Receipts in advance|(V)18||5,067,901.21||6,130,153.26||
||(V)3||53,234,644.64||55,359,989.14||Employee benefits|(V)19||31,424,490.98||29,224,029.77||
|Accounts receivable||||||||||||||
||||||||payable|||||||
|Prepayments|(V)4||373,220.41||552,431.59||Taxes payable|(V)20||40,439,178.66||47,822,734.42||
|Interest receivable|(V)5||3,573,311.30||4,921,521.51||Interest payable|(V)21||36,404,811.44||30,310,581.13||
|Dividends receivable|(V)6||-||48,000,000.00||Other payables|(V)22||439,034,917.38||257,405,077.80||
||(V)7||61,287,160.23||62,963,514.81||Non-current liabilities|(V)23||1,349,351.16||311,049,351.16||
|Other receivables||||||||||||||
||||||||due within one year|||||||
||(V)8||1,054,046.42||996,356.55||Other current|(V)24||300,000,000.00||-||
|Inventories||||||||||||||
||||||||liabilities|||||||
||(V)9||390,000,000.00||669,950,582.00||Total Current|||864,078,660.07||692,571,618.56||
|Other current assets||||||||||||||
||||||||Liabilities|||||||
|Total Current|||894,851,244.18||1,142,654,765.23||Non-current|||||||
|Assets|||||||Liabilities:|||||||
|Non-current Assets:|||||||Long-term borrowings|(V)25||390,816,685.64||185,443,647.96||
|Long-term equity|(V)10||537,962,041.17||476,253,695.39|||(V)26||965,677,500.00||964,195,500.00||
||||||||Bonds payable|||||||
|investments||||||||||||||
|Investment|(V)11||1,267,169,209.29||904,216,455.40|||(V)27||251,417,853.31||212,011,691.49||
||||||||Long-term payables|||||||
|properties||||||||||||||
|Fixed assets|(V)12||777,313,197.48||516,378,454.46||Deferredincome|(V)28||1,500,000.00||-||
|Construction in|(V)13||300,456,627.34||376,158,459.02||Other non-current|(V)29||927,716,909.50||916,496,620.66||
|progress|||||||liabilities|||||||
||(V)14||1,341,187,179.75||1,242,104,033.52||Total Non-current|||2,537,128,948.45||2,278,147,460.11||
|Intangible assets||||||||||||||
||||||||Liabilities|||||||
||(V)15||17,117,751.96||16,672,785.76||TOTAL|||3,401,207,608.52||2,970,719,078.67||
|Deferred tax assets||||||||||||||
||||||||LIABILITIES|||||||
|Other non-current|(V)16||253,572,620.64||44,164,977.18||SHAREHOLDERS'|||||||
|assets|||||||EQUITY:|||||||
|Total Non-current|||4,494,778,627.63||3,575,948,860.73|||(V)30||230,600,000.00||230,600,000.00||
||||||||Share capital|||||||
|Assets||||||||||||||
||||||||Capital reserve|(V)31||234,141,186.09||234,141,186.09||
||||||||Other comprehensive|(V)32||652,079.14||603,045.89||
||||||||income|||||||
||||||||Special reserve|(V)33||4,240,147.49||2,622,730.81||
||||||||Surplus reserve|(V)34||307,084,630.25||284,684,747.72||
||||||||Unappropriated profits|(V)35||913,767,989.40||717,623,688.04||
||||||||Total shareholders'|||1,690,486,032.37||1,470,275,398.55||
||||||||equity attributable to|||||||
||||||||equity holders of the|||||||
||||||||Company|||||||
||||||||Minority interests|||297,936,230.92||277,609,148.74||
||||||||TOTAL|||1,988,422,263.29||1,747,884,547.29||
||||||||SHAREHOLDERS'|||||||
||||||||EQUITY|||||||
||||5,389,629,871.81||4,718,603,625.96||TOTAL|||5,389,629,871.81||4,718,603,625.96||
||||||||LIABILITIES AND|||||||
|TOTAL ASSETS||||||||||||||
||||||||SHAREHOLDERS'|||||||
||||||||EQUITY|||||||

The accompanying notes form an integral part of the financial statements.
The financial statements on pages 3 to 95were signed by the following:
Tian Junyan Yu Zhongxia Sun Yuhui Legal Representative Chief Financial Officer Head of Accounting Department
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
AT 31 DECEMBER 2014
Balance Sheet of the Company
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ITEM||Notes||Closing balance||Opening balance|ITEM||Notes||Closing balance||Opening balance|
|Current Assets:|||||||Current Liabilities:|||||||
|Cash and bank|(XIV)1||110,176,958.92||59,429,719.52|||||10,133,886.43||9,934,722.92||
||||||||Accounts payable|||||||
|balances||||||||||||||
|Accounts receivable|(XIV)2||34,383,433.27||40,118,181.46||Employee benefits payable|||22,196,600.51||19,641,409.26||
|Prepayments|||162,238.73||163,921.32||Taxes payable|||26,735,284.42||28,393,537.23||
|Interest receivable|||3,242,328.77||4,797,363.01||Interest payable|||36,195,924.54||28,301,589.75||
|Dividends receivable|(V)6||-||48,000,000.00||Other payables|||74,542,526.68||65,217,657.24||
||(XIV)3||1,479,302,828.83||1,085,568,875.34||Non-current liabilities due|(V)23||1,349,351.16||311,049,351.16||
|Other receivables||||||||||||||
||||||||within one year|||||||
|Inventories|||618,056.60||747,075.29||Other current liabilities|(V)24||300,000,000.00||-||
|Other current assets|||278,000,000.00||547,610,000.00||Total Current Liabilities|||471,153,573.74||462,538,267.56||
|Total Current Assets|||1,905,885,845.12||1,786,435,135.94||Non-current Liabilities:|||||||
|Non-current Assets:|||||||Long-term borrowings|(XIV)5||182,524,302.04||165,048,306.62||
|Long-term equity|(XIV)4||1,409,767,800.88||1,348,059,455.10|||(V)26||965,677,500.00||964,195,500.00||
||||||||Bonds payable|||||||
|investments||||||||||||||
||||107,855,864.11||106,792,020.08||Other non-current|||717,716,909.50||719,066,260.66||
|Investment properties||||||||||||||
||||||||liabilities|||||||
||||70,348,373.29||74,973,379.32||Total Non-current|||1,865,918,711.54||1,848,310,067.28||
|Fixed assets||||||||||||||
||||||||Liabilities|||||||
|Construction in|||23,265,903.87||7,174,594.15|||||2,337,072,285.28||2,310,848,334.84||
||||||||TOTAL LIABILITIES|||||||
|progress||||||||||||||
||||308,975,078.68||325,806,871.10||SHAREHOLDERS'|||||||
|Intangible assets||||||||||||||
||||||||EQUITY:|||||||
|Deferred tax assets|||137,885.22||151,389.97||Share capital|(V)30||230,600,000.00||230,600,000.00||
|Other non-current|||417,184.70||585,092.78|||||204,534,849.49||204,534,849.49||
||||||||Capital reserve|||||||
|assets||||||||||||||
|Total non-current assets|||1,920,768,090.75||1,863,542,802.50||Special reserve|||4,103,762.23||2,533,941.99||
||||||||Surplus reserve|(V)34||307,084,630.25||284,684,747.72||
||||||||Unappropriated profits|||743,258,408.62||616,776,064.40||
||||||||TOTAL|||1,489,581,650.59||1,339,129,603.60||
||||||||SHAREHOLDERS'|||||||
||||||||EQUITY|||||||
||||3,826,653,935.87||3,649,977,938.44||TOTAL LIABILITIES|||3,826,653,935.87||3,649,977,938.44||
|TOTAL ASSETS|||||||AND SHAREHOLDERS'|||||||
||||||||EQUITY|||||||

The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2014
Consolidated Income Statement
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||||Amount for the|
|||||Amount for the||prior|
|ITEM||Notes||current period||period(restated)|
|I. Total operating income|(V)36||712,958,603.26||691,832,626.47||
|Including: Operating income|||712,958,603.26||691,832,626.47||
|Less: Total operating costs|||528,142,422.68||519,173,072.92||
|Including: Operating costs|(V)36||259,661,927.23||252,860,477.85||
|Business taxes and levies|(V)37||26,566,881.59||29,668,672.93||
|Selling expenses|(V)38||423,872.43||1,108,956.18||
|General and administrative expenses|(V)39||95,231,275.15||89,099,231.46||
|Financial expenses|(V)40||146,278,726.91||146,367,084.19||
|Impairment losses of assets|(V)41||(20,260.63)||68,650.31||
|Add: Investment income|(V)42||93,892,421.67||95,467,912.62||
|Including: Income from investments in associates and|||61,708,345.78||62,622,013.46||
|joint ventures|||||||
|II. Operating profit|||278,708,602.25||268,127,466.17||
|Add: Non-operating income|(V)43||11,868,125.52||5,569,265.05||
|Including: Income from disposal of non-current assets|||244,284.67||355,637.36||
|Less: Non-operating expenses|(V)44||(11,228.60)||386,321.46||
|Including: Losses from disposal of non-current assets|||54,664.06||132,490.93||
|III. Gross profit|||290,587,956.37||273,310,409.76||
|Less: Income tax expenses|(V)45||51,731,039.46||53,322,779.57||
|IV. Net profit|||238,856,916.91||219,987,630.19||
|Net profit attributable to owners of the Company|||218,544,184.50||204,249,571.44||
|Profit or loss attributable to minority shareholders|||20,312,732.41||15,738,058.76||
|V. Post-tax net value of other comprehensive income|(V)46||63,383.20||779,531.92||
|Post-tax net value of other comprehensive income attributable|||49,033.25||603,045.89||
|to owners of the Company|||||||
|(I) Other comprehensive income that will not be reclassified|||-||-||
|subsequently to profit or loss|||||||
|(II) Other comprehensive income that will be reclassified|||49,033.25||603,045.89||
|subsequently to profit or loss|||||||
|1.Translation differences arising on translation of financial|||49,033.25||603,045.89||
|statements denominated in foreign currencies|||||||
|Post-tax net value of other comprehensive income attributable|||14,349.95||176,486.03||
|to minority shareholders|||||||
|VI. Total comprehensive income:|||238,920,300.11||220,767,162.12||
|Total comprehensive income attributable to owners of the|||218,593,217.75||204,852,617.33||
|Company|||||||
|Total comprehensive income attributable to minority|||20,327,082.36||15,914,544.79||
|shareholders|||||||
|VII. Earnings per share:|||||||
|(I) Basic earnings per share|(V)47||0.95||0.89||
|(II) Diluted earnings per share|||Not applicable||Not applicable||

 Business combination involving enterprises under common control took place in the current period. The combining entity achieved RMB 12,902,949.53 net loss from the beginning of current period till the combination date, and comparatively achieved RMB 4,284,120.49 net loss in the prior period.
The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2014
Income Statement of the Company
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Amount for the||Amount for the|
|ITEM||Notes||current period||prior period|
|I. Operating income|(XIV)6||339,839,233.86||350,311,658.21||
|Less: Operating costs|(XIV)6||129,005,032.30||131,928,558.14||
|Business taxes and levies|||6,903,480.46||7,307,947.80||
|General and administrative expenses|||45,734,091.63||43,538,896.51||
|Financial expenses|||81,794,162.95||90,651,442.34||
|Impairment loss of assets|||(57,250.99)||109,482.06||
|Add: Investment income|(XIV)7||95,214,130.68||97,628,267.60||
|Including: Income from investments in associates and|||61,708,345.78||62,622,013.46||
|joint ventures|||||||
|II. Operating profit|||171,673,848.19||174,403,598.96||
|Add: Non-operating income|||6,591,985.84||5,154,597.21||
|Including: Income from disposal of non-current assets|||136,397.54||331,734.80||
|Less: Non-operating expenses|||50,964.15||115,630.64||
|Including: Losses from disposal of non-current assets|||46,964.15||108,450.64||
|III. Gross profit|||178,214,869.88||179,442,565.53||
|Less: Income tax expenses|||29,332,643.13||29,209,368.56||
|IV. Net profit|||148,882,226.75||150,233,196.97||
|V. Other comprehensive income post tax|||-||-||
|VI. Total comprehensive income|||148,882,226.75||150,233,196.97||

 The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2014
Consolidated Cash Flow Statement
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Amount for the||Amount for the prior|
|ITEM||Notes||current period||period(restated)|
|I. Cash Flows from Operating Activities:|||||||
|Cash receipts from sales of goods and rendering of services|||740,370,138.41||710,277,206.51||
|Other cash receipts relating to operating activities|(V)48(1)||48,651,708.77||60,082,931.42||
|Sub-total of cash inflows from operating activities|||789,021,847.18||770,360,137.93||
|Cash payments for goods purchased and services received|||126,480,316.05||103,233,168.44||
|Cash payments to and on behalf of employees|||83,139,873.12||79,976,733.93||
|Payments of various taxes|||127,912,997.88||92,255,987.36||
|Other cash payments relating to operating activities|(V)48(2)||37,117,900.08||60,806,289.75||
|Sub-total of cash outflows from operating activities|||374,651,087.13||336,272,179.48||
|Net Cash Flows from Operating Activities|(V)49(1)||414,370,760.05||434,087,958.45||
|II. Cash Flows from Investing Activities:|||||||
|Cash receipts from investment income|||48,000,000.00||22,400,607.82||
|Net cash receipts from disposal of fixed assets, intangible assets and|||177,796.50||327,157.94||
|other long-term assets|||||||
|Other cash receipts relating to investing activities|(V)48(3)||3,270,515,834.60||3,874,548,916.89||
|Sub-total of cash inflows from investing activities|||3,318,693,631.10||3,897,276,682.65||
|Cash payments to acquire or construct fixed assets, intangible assets|||743,934,266.68||515,474,082.38||
|and other long-term assets|||||||
|Cash payments to acquire investments|||0.79||-||
|Other cash payments relating to investing activities|(V)48(4)||2,974,017,722.00||4,136,654,100.00||
|Sub-total of cash outflows from investing activities|||3,717,951,989.47||4,652,128,182.38||
|Net Cash Flows from Investing Activities|||(399,258,358.37)||(754,851,499.73)||
|III. Cash Flows from Financing Activities:|||||||
|Cash receipts from capital contributions|||-||810.70||
|Including: cash receipts from minority shareholders' contributions on|||-||-||
|subsidiaries|||||||
|Cash receipts from borrowings|||206,505,698.16||68,679,796.40||
|Other cash receipts relating to financing activities|(V)48(5)||566,726,161.82||239,687,052.73||
|Sub-total of cash inflows from financing activities|||773,231,859.98||308,367,659.83||
|Cash repayments of borrowings|||311,000,000.00||406,600,000.00||
|Cash payments for distribution of dividends or profits or settlement|||84,407,685.46||116,381,239.94||
|of interest expenses|||||||
|Including: cash payments for distribution of dividends or profits or|||-||-||
|settlement of interest expenses to minority shareholders by|||||||
|subsidiaries|||||||
|Other cash payments relating to financing activities|(V)48(6)||317,332,894.11||59,995,597.46||
|Sub-total of cash outflows from financing activities|||712,740,579.57||582,976,837.40||
|Net Cash Flows from Financing Activities|||60,491,280.41||(274,609,177.57)||
|IV. Effect of Foreign Exchange Rate Changes on Cash and Cash|||(180,190.54)||1,928,948.16||
|Equivalents|||||||
|V. Net Increase (Decrease) in Cash and Cash Equivalents|||75,423,491.55||(593,443,770.69)||
|Add: Opening balance of Cash and Cash Equivalents|(V)49(2)||299,905,369.63||893,349,140.32||
|VI. Closing Balance of Cash and Cash Equivalents|(V)49(2)||375,328,861.18||299,905,369.63||

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2014
Cash Flow Statement of the Company
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Amount for the||Amount for the prior|
|ITEM||Note||current period||period|
|I. Cash Flows from Operating Activities:|||||||
|Cash receipts from sales of goods and rendering of services|||355,205,645.97||345,232,322.35||
|Other cash receipts relating to operating activities|||23,714,309.88||42,528,320.46||
|Sub-total of cash inflows from operating activities|||378,919,955.85||387,760,642.81||
|Cash payments for goods purchased and services received|||76,904,180.98||68,188,823.12||
|Cash payments to and on behalf of employees|||47,147,198.02||46,185,517.92||
|Payments of various taxes|||53,803,833.21||38,655,940.19||
|Other cash payments relating to operating activities|||23,331,595.75||36,940,512.73||
|Sub-total of cash outflows from operating activities|||201,186,807.96||189,970,793.96||
|Net Cash Flows from Operating Activities|(XIV)8||177,733,147.89||197,789,848.85||
|II. Cash Flows from Investing Activities:|||||||
|Cash receipts from investment income|||48,000,000.00||53,781,013.32||
|Net cash receipts from disposal of fixed assets, intangible assets and|||-||10,880.00||
|other long-term assets|||||||
|Other cash receipts relating to investing activities|||3,719,973,553.19||4,897,238,903.79||
|Sub-total of cash inflows from investing activities|||3,767,973,553.19||4,951,030,797.11||
|Cash payments to acquire or construct fixed assets, intangible assets|||18,665,765.86||15,852,799.13||
|and other long-term assets|||||||
|Cash payments to acquire investments|||3,758,106,643.14||-||
|Other cash payments relating to investing activities|||3,776,772,409.00||5,408,507,289.50||
|Sub-total of cash outflows from investing activities|||(8,798,855.81)||5,424,360,088.63||
|Net Cash Flows from Investing Activities|||(8,798,855.81)||(473,329,291.52)||
|III. Cash Flows from Financing Activities:|||||||
|Cash receipts from borrowings|||18,775,995.42||48,284,455.06||
|Other cash receipts relating to financing activities|||308,300,829.03||8,250,591.23||
|Sub-total of cash inflows from financing activities|||327,076,824.45||56,535,046.29||
|Cash repayments of borrowings|||311,000,000.00||406,600,000.00||
|Cash payments for distribution of dividends or profits or settlement of|||77,387,329.05||116,164,257.09||
|interest expenses|||||||
|Other cash payments relating to financing activities|||56,873,004.37||52,348,815.94||
|Sub-total of cash outflows from financing activities|||445,260,333.42||575,113,073.03||
|Net Cash Flows from Financing Activities|||(118,183,508.97)||(518,578,026.74)||
|IV. Effect of Foreign Exchange Rate Changes on Cash and Cash|||1,456.29||(64,990.87)||
|Equivalents|||||||
|V．Net Increase (Decrease) in Cash and Cash Equivalents|||50,752,239.40||(794,182,460.28)||
|Add: Opening balance of Cash and Cash Equivalents|(XIV)8||59,424,719.52||853,607,179.80||
|VI. Closing Balance of Cash and Cash Equivalents|(XIV)8||110,176,958.92||59,424,719.52||

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2014
Consolidated Statement of Changes in Shareholders' Equity
Unit: RMB
|||||||||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Amount for the current period|||||||||||||||||Amount for the same period of last year(restated)|||||||||||||
|||||Attributable to shareholders of the Company|||||||||||||||||Attributable to shareholders of the Company|||||||||||||
||||||||||||||||||Total||||||||||||||||Total|
|||||||Other comprehensiv|e||||||||||shareholders'||||||Other comprehensive||||||Unappropriated||||shareholders'|
|ITEM||Share capital||Capital reserve||income|||Special reserve||Surplus reserve||Unappropriated profits||Minority interests||equity||Share capital||Capital reserve||income||Special reserve||Surplus reserve||profits||Minority interests||equity|
||230,600,000.00||234,141,186.09||-|||2,622,730.81||284,684,747.72||720,937,883.66||278,402,587.59||1,751,389,135.87||230,600,000.00||234,141,186.09||-||1,469,510.03||263,826,090.57||557,522,716.65||261,694,420.41||1,549,253,923.75||
|I. Closing balance of the preceding year||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|Add: Changes in accounting policies||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|Corrections of prior period errors||||||||||||||||||||||||||||||||||
|Business combination involving entities|-||-||603,045.89|||-||-||(3,314,195.62)||(793,438.85)||(3,504,588.58)||-||-||||-||-||627.16||183.54||810.70||
|under common control||||||||||||||||||||||||||||||||||
||230,600,000.00||234,141,186.09||603,045.89|||2,622,730.81||284,684,747.72||717,623,688.04||277,609,148.74||1,747,884,547.29||230,600,000.00||234,141,186.09||603,045.89||1,469,510.03||263,826,090.57||557,523,343.81||261,694,603.95||1,549,254,734.45||
|II. Opening balance of the current year||||||||||||||||||||||||||||||||||
||-||-||49,033.25|||1,617,416.68||22,399,882.53||196,144,301.36||20,327,082.18||240,537,716.00||-||-||603,045.89||1,153,220.78||20,858,657.15||160,100,344.23||15,914,544.79||198,629,812.84||
|III. Changes for the year||||||||||||||||||||||||||||||||||
||-||-||49,033.25|||-||-||218,544,184.50||20,327,082.36||238,920,300.11||-||-||-||-||-||204,249,571.43||15,914,544.79||220,767,162.11||
|(I) Comprehensive income||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||(0.61)||(0.18)||(0.79)||-||-||-||-||-||-||-||-||
|(II) Owners' contributions and reduction in||||||||||||||||||||||||||||||||||
|capital||||||||||||||||||||||||||||||||||
|1. Capital contribution from owners|-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|2. Capital contribute from other equity||||||||||||||||||||||||||||||||||
|instrument holders||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|3. Share-based payment recognized in||||||||||||||||||||||||||||||||||
|owners' equity||||||||||||||||||||||||||||||||||
|4. Effect of business combination|-||-||-|||-||-||(0.61)||(0.18)||(0.79)||-||-||-||-||-||-||-||-||
|involving entities under common control||||||||||||||||||||||||||||||||||
||-||-||-|||-||22,399,882.53||(22,399,882.53)||-||-||-||-||-||-||20,858,657.15||(44,149,227.20)||||(23,290,570.05)||
|(III) Profit distribution||||||||||||||||||||||||||||||||||
||-||-||-|||-||22,399,882.53||(22,399,882.53)||-||-||-||-||-||-||20,858,657.15||(20,858,657.15)||-||-||
|1. Transfer to surplus reserve||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|2. General Risk Provision||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||(23,290,570.05)||-||(23,290,570.05)||
|3. Distributions to shareholders||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|4. Others||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|(IV) Transfers within owners' equity||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|1. Capitalization of capital reserve||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|2. Capitalization of surplus reserve||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|3. Loss offset by surplus reserve||||||||||||||||||||||||||||||||||
||-||-||-|||-||-||-||-||-||-||-||-||-||-||-||-||-||
|4. Others||||||||||||||||||||||||||||||||||
||-||-||-|||1,617,416.68||-||-||-||1,617,416.68||-||-||-||1,153,220.78||-||-||-||1,153,220.78||
|(VI) Special reserve||||||||||||||||||||||||||||||||||
|1. Transfer to special reserve in the period|-||-||-|||2,401,076.31||-||-||-||2,401,076.31||-||-||-||1,713,819.06||-||-||-||1,713,819.06||
||-||-||-|||(783,659.63)||-||-||-||(783,659.63)||-||-||-||(560,598.28)||-||-||-||(560,598.28)||
|2. Amount utilized in the period||||||||||||||||||||||||||||||||||
||230,600,000.00||234,141,186.09||652,079.14|||4,240,147.49||307,084,630.25||913,767,989.40||297,936,230.92||1,988,422,263.29||230,600,000.00||234,141,186.09||603,045.89||2,622,730.81||284,684,747.72||717,623,688.04||277,609,148.74||1,747,884,547.29||
|IV. Closing balance of the current year||||||||||||||||||||||||||||||||||

 The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2014
Statement of Changes in Shareholders' Equity of the Company
Unit: RMB
||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Amount for the current period||||||||||||Amount for the same period of last year|||||||||||
|||Attributable to shareholders of the Company||||||||||Total||Attributable to shareholders of the Company|||||||||||
|||||||||||Unappropriated||shareholders'||||||||||Unappropriated||Total shareholders'|
|ITEM||Share capital||Capital reserve||Special reserve||Surplus reserve||profits||equity||Share capital||Capital reserve||Special reserve||Surplus reserve||profits||equity|
|I. Closing balance of the preceding|230,600,000.00||204,534,849.49||2,533,941.99||284,684,747.72||616,776,064.40||1,339,129,603.60||230,600,000.00||204,534,849.49||1,428,499.80||263,826,090.57||510,692,094.63||1,211,081,534.49||
|year|||||||||||||||||||||||||
|Add: Changes in accounting policies|-||-||-||-||-||-||-||-||-||-||-||-||
|Corrections of prior period errors|-||-||-||-||-||-||-||-||-||-||-||-||
|Others|-||-||-||-||-||-||-||-||-||-||-||-||
|II. Opening balance of the current|230,600,000.00||204,534,849.49||2,533,941.99||284,684,747.72||616,776,064.40||1,339,129,603.60||230,600,000.00||204,534,849.49||1,428,499.80||263,826,090.57||510,692,094.63||1,211,081,534.49||
|year|||||||||||||||||||||||||
|III. Changes for the year|-||-||1,569,820.24||22,399,882.53||126,482,344.22||150,452,046.99||-||-||1,105,442.19||20,858,657.15||106,083,969.77||128,048,069.11||
|(I) Comprehensive income|-||-||-||-||148,882,226.75||148,882,226.75||-||-||-||-||150,233,196.97||150,233,196.97||
|(II) Owners' contributions and|-||-||-||-||-||-||-||-||-||-||-||-||
|reduction in capital|||||||||||||||||||||||||
|1. Capital contribution from owners|-||-||-||-||-||-||-||-||-||-||-||-||
|2. Capital contribute from other|-||-||-||-||-||-||-||-||-||-||-||-||
|equity instrument holders|||||||||||||||||||||||||
|3. Share-based payment recognized|-||-||-||-||-||-||-||-||-||-||-||-||
|in owners' equity|||||||||||||||||||||||||
|4. Others|-||-||-||-||-||-||-||-||-||-||-||-||
|(III) Profit distribution|-||-||-||22,399,882.53||( 22,399,882.53)||-||-||-||-||20,858,657.15||(44,149,227.20)||(23,290,570.05)||
|1. Transfer to surplus reserve|-||-||-||22,399,882.53||( 22,399,882.53)||-||-||-||-||20,858,657.15||(20,858,657.15)||-||
|2. General Risk Provision|-||-||-||-||-||-||-||-||-||-||-||||
|3. Distributions to shareholders|-||-||-||-||-||-||-||-||-||-||(23,290,570.05)||(23,290,570.05)||
|4. Others|-||-||-||-||-||-||-||-||-||-||-||-||
|(IV) Transfers within owners' equity|-||-||-||-||-||-||-||-||-||-||-||-||
|1. Capitalization of capital reserve|-||-||-||-||-||-||-||-||-||-||-||-||
|2. Capitalization of surplus reserve|-||-||-||-||-||-||-||-||-||-||-||-||
|3. Loss offset by surplus reserve|-||-||-||-||-||-||-||-||-||-||-||-||
|4. Others|-||-||-||-||-||-||-||-||-||-||-||-||
|(V) Special reserve|-||-||1,569,820.24||-||-||1,569,820.24||-||-||1,105,442.19||-||-||1,105,442.19||
|1. Transfer to special reserve in the|-||-||2,337,529.68||-||-||2,337,529.68||-||-||1,660,540.47||-||-||1,660,540.47||
|period|||||||||||||||||||||||||
|2. Amount utilized in the period|-||-||(767,709.44)||-||-||(767,709.44)||-||-||(555,098.28)||-||-||(555,098.28)||
|IV. Closing balance of the current|230,600,000.00||204,534,849.49||4,103,762.23||307,084,630.25||743,258,408.62||1,489,581,650.59||230,600,000.00||204,534,849.49||2,533,941.99||284,684,747.72||616,776,064.40||1,339,129,603.60||
|year|||||||||||||||||||||||||

The accompanying notes form an integral part of the financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(I) BASIC INFORMATION ABOUT THE COMPANY
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (the "Company")was established through the restructuring of Shenzhen Chiwan Base Company pursuant to the approval of Shen Fu Ban Han (1995) No. 112 issued by the General Office of Shenzhen Municipal People's Government. The Company publicly issued domestic listed foreign shares (B-Share) pursuant to the approval of Shen Fu Ban Han (1995) No. 112 issued by the General Office of Shenzhen Municipal People's Government and Shen Zheng Ban Fu (1995) No.33 issued by Shenzhen Securities Administration Office on 11 May 1995 and 16 June 1995 respectively. The total number of shares of the Company is 230,600,000 shares after the public offering, of whichChina Nanshan Development (Group) Incorporation ("Nanshan Group") holds 119,420,000 shares that accounts for51.79% the Company's equity shares. Pursuant to the Listing Notice of Shen Zheng Shi Zi (1995) No.14, issued by Shenzhen Stock Exchange, the Company's shares were listed and traded on Shenzhen Stock Exchange on 28 July 1995.
The registration place of the Company is Shenzhen City, Guangdong Province.The main business scope of the Company and its subsidiaries (the "Group") include: terminal and port operation services; lease of stack area, storage and office building; provision of labor service, cargo handling and transportation, equipment lease, supply of water, power and oil, and agency services for offshore crude oil logistics; operating bonded warehouse and stack area, and commercial car park operation.
The company and the consolidated financial statements are approved by the Board of directors on 10 March 2015.
The scope of consolidated financial statements in the current period involves 28subsidiaries. See Note (VII) "Equity in other entities" for details. Changes of scope are subsidiaries acquired in business combinations involving enterprises under common control. See Note (VI) "Changes of consolidation scope" for details.
(II) BASIS OFPREPARATIONOFFINACIALSTATEMENTS
Basis of preparation
The Group has adopted the Accounting Standards for Business Enterprises (the "ASBEs") issued by the Ministry of Finance (the "MoF"), including standards newly issued and amended in 2014. In addition, the Group has disclosed relevant financial information in accordance with
Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in 2014).
Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for certain financial instruments which are measured at fair value, the Group adopts the historical cost as the principle of
measurement in the financial statements. Where assets are impaired, provisions for asset
impairment are made in accordance with the relevant requirements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(II) BASIS OFPREPARATIONOFFINACIALSTATEMENTS- continued
Basis of accounting and principle of measurement - continued
Under the historical cost measurement, asset should be measured at the value of cash or cash equivalents or fair value paid to acquire the asset, whereas liability should be measured at the value of cash or assets received due to shoulder present obligation, or at the contract amount of shouldering present obligation, or at the value of cash or cash equivalents expected to pay for the liability in routine activities.
Under the historical cost measurement, asset should be measured at the value of cash or cash equivalents or fair value paid to acquire the asset, whereas liability should be measured at the value of cash or assets received due to shoulder present obligation, or at the contract amount of shouldering present obligation, or at the value of cash or cash equivalents expected to pay for the liability in routine activities.
Pursuant to the observation of input value and the significance of the input value on the whole, measurements of fair value are divided into the below three levels:
•Level 1 input value is the unadjusted price of equivalent assets or liability which can be acquired in an active market on the measurement date.
•Level 2 input value is assets or liability except for those in Level 1, which are observable for the asset or liability, either directly or indirectly
•Level 3 input value is assets or liability which cannot be observed.
Going concern
The Group evaluated its going concern ability within 12 months since 31 December 2014. There are no events or circumstances that may cast significant doubt upon the entity's ability to continue as a going concern, Hence, the financial statements have been prepared on a going concernbasis.。
(III) SIGNIFICANT ACCOUNTING POLICIES, and ACCOUNTING ESTIMATES
1. Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with the ASBEs, and present truly and completely, the Company's and consolidated financial position as of 31 December 2014, and the Company's and consolidated results of operations and cash flows for the year then ended.
2. Accounting period
The Group has adopted the calendar year as its accounting year, i.e. from 1 January to 31 December.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued3、Business
Cycle
Buginese cycle is referred to the period from which an enterprise buys assets to manufacture to the date it achieves cash or cash equivalents.
4. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company and its subsidiaries in the People's Republic of China (the "PRC") operate. Therefore, the Company and its PRC subsidiaries choose RMB as their functional currency. Subsidiaries not located in PRC choose HK dollar as their functional currency based on the primary economic environment. The Group adopts RMB to prepare its financial statements.
5. The accounting treatment of business combinations involving enterprises under common control and business combinations not involving enterprises under common control Business combinations are classified into business combinations involving enterprises under common control and business combinations not involving enterprises under common control. 5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded by the combining entities at the date of the combination. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings. Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are incurred.
5.2 Business combinations not involving enterprises under common control and goodwill A business combination not involving enterprises under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree. The intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services, etc. and other associated administrative expenses attributable to the business combination are recognized in profit or loss when they are
incurred.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 5. The accounting treatment of business combinations involving enterprises under common control and business combinations not involving enterprises under common control - continued 5.2 Business combinations not involving enterprises under common control and goodwill -continued The 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 firstly reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment losses, and is presented separately in the consolidated financial statements.
6. Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its operating activities.
For a subsidiary disposed of by the Group, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
For a subsidiary acquired through a business combination not involving enterprises under common control, the operating results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate, and no adjustment is made to the opening balances and comparative figures in the consolidated financial statements.
No matter when the business combination occurs in the reporting period, subsidiaries acquired through a business combination involving enterprises under common control are included in the Group's scope of consolidation as if they had been included in the scope of consolidation from the date when they first came under the common control of the ultimate controlling party. Their operating results and cash flows from the beginning of the earliest reporting period are included in the consolidated income statement and consolidated statement of cash flows, as appropriate. The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the uniform accounting policies and accounting periods set out by the Company.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 6. Preparation of consolidated financial statements - continued
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the Company is treated as minority interests and presented as "minority interests" in the consolidated balance sheet within shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable to minority interests is presented as "minority interests" in the consolidated income statement below the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders' portion of the opening balance of owners' equity of the subsidiary, the excess amount are still allocated against minority interests.
Acquisition of minority interests or disposal of interest in a subsidiary that does not result in the loss of control over the subsidiary is accounted for as equity transactions. The carrying amounts of the Company's interests and minority interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the amount by which the minority interests are adjusted and the fair value of the consideration paid or received is adjusted to capital reserve under owners' equity. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against retained earnings.
7. Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are the Group's short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. 8. Translation of transactions and financial statements denominated in foreign currencies 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 available-for-sale non-monetary items (such as shares) denominated in foreign currencies and changes in the carrying amounts (other than the amortized cost) of available-for-sale monetary items are recognized as other comprehensive income.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 8. Translation of transactions and financial statements denominated in foreign currencies- continued
8.1 Transactions denominated in foreign currencies- continued
Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange rate on the date the fair value is determined. Difference between the re-translated functional currency amount and the original functional currency amount is treated as changes in fair value (including changes of exchange rate) and is recognized in profit and loss or as other comprehensive income.
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 distribution of profits 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 exchange differences arising on translation of financial statements denominated in foreign currencies under the shareholders' equity in the balance sheet. Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary are translated at an exchange rate which approximates 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 ofexchange rate changes on cash and cash equivalents".
The opening balances and the comparative figures of previous year are presented at the translated amounts in the previous year's financial statements.
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a foreign operation due to disposal of certain interest in it or other reasons, the Group transfers the accumulated exchange differences arising on translation of financial statements of this foreign operation attributable to the owners' equity of the Company and presented under shareholders' equity, to profit or loss in the period in which the disposal occurs.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) 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 - continued
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 exchange differences arising on translation of financial statements are re-attributed to minority interests and are not recognized in profit and loss. For partial disposals of equity interests in foreign operations which are associates or joint ventures, the proportionate share of the accumulated exchange differences arising on translation of financial statements of foreign operations is reclassified to profit or loss.
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.
9.1Effective 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.
9.2 Classification, recognition and measurement of financial assets
On initial recognition, the Group's financial assets are classified into one of the four categories, including financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables, and available-for-sale financial assets. All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 9. Financial instruments - continued
9.2 Classification, recognition and measurement of financial assets - continued
9.2.1. Financial assets at fair value through profit or loss ("FVTPL")
Financial assets at FVTPL include financial assets held for trading and those designated as at fair value through profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (i) It has been acquired principally for the purpose of selling in the near term; or (ii) On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or (iii) It is a derivative that is not designated and effective as a hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (i) Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring assets or recognizing the gains or losses on them on different bases; or (ii) The financial asset forms part of a group of financial assets or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis; (iii) Hybrid instruments associated with embedded derivatives and financial assets measured at fair value and of which changes are recorded into the profits and losses as specified in Accounting Standard for Business Enterprises No.22 - Financial Recognition and Measurement of Instruments.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value and any dividend or interest income earned on the financial assets are recognized in profit or loss.
9.2.2 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 DE recognition, impairment or amortization is recognized in profit or loss.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 9. Financial instruments - continued
9.2 Classification, recognition and measurement of financial assets - continued
9.2.3. Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets classified as loans and receivables by the Group include accounts receivable, interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from DE recognition, impairment or amortization is recognized in profit or loss.
9.2.4. 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, except that impairment losses and exchange differences related to amortized cost of monetary financial assets denominated in foreign currencies 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 which are linked to and must be settled by delivery of such unquoted equity instruments, are measured at cost. 9.3 Impairment of financial assets
The Group assesses at each balance sheet date the carrying amounts of financial assets other than those at fair value through profit or loss. If there is objective evidence that a financial asset is impaired, the Group determines the amount of any impairment loss. Objective evidence that a financial asset is impaired is evidence that, arising from one or more events that occurred after the initial recognition of the asset, the estimated future cash flows of the financial asset, which can be reliably measured, have been affected.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 9. Financial instruments - continued
9.3 Impairment of financial assets - continued
Objective evidence that a financial asset is impaired includes the following observable events: (1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal payments; (3) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial reorganizations; (5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer; (6) Upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in the estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. Such observable data includes:
- Adverse changes in the payment status of borrower in the group of assets;
- Economic conditions in the country or region of the borrower which may lead to a failure to pay the group of assets;
(7) Significant adverse changes in the technological, market, economic or legal environment in which the issuer operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortized cost
If financial assets carried at 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 is made to the extent that the carrying amount of the financial asset at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.
For a financial asset that is individually significant, the Group assesses the asset individually for impairment. For a financial asset that is not individually significant, the Group assesses the asset individually for impairment or includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset (whether significant or not), it includes the asset in a group of financial assets with similar credit risk characteristics and collectively reassesses them for impairment. Assets for which an impairment loss is individually recognized are not included in a collective assessment of impairment.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 9. Financial instruments - continued
9.3 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, 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.
9.4 Transfer of financial assets
The Group derecognizes a financial asset if one of the following conditions is satisfied: (1) the contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; or (3) although the financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and it retains control of the financial asset, it recognizes the financial asset to the extent of its continuing involvement in the transferred financial asset and recognizes an associated liability. The extent of the Group's continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the transferred asset.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 9. Financial instruments - continued
9.4 Transfer of financial assets- continued
For a transfer of a financial asset in its entirety that satisfies the DE recognition criteria, the difference between (1) the carrying amounts 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.
9.5 Classification, recognition and measurement of financial liabilities
Debt and equity instruments issued by the Group are classified into financial liabilities or equity on the basis of the substance of the contractual arrangements and definitions of financial liability and equity instrument.
On initial recognition, financial liabilities are classified into financial liabilities at fair value through profit or loss and other financial liabilities.
9.5.1 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 PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 9. Financial instruments - continued
9.5 Classification, recognition and measurement of financial liabilities - continued
9.5.1 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; (3) Hybrid instruments associated with embedded derivatives and financial liabilities measured at fair value and of which changes are recorded into the profits and losses as specified in Accounting Standard for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments.
Financial liabilities at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value or any dividend or interest expenses related to the financial liabilities are recognized in profit or loss.
9.5.2 Other financial liabilities
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, it is subsequently measured at cost. Other financial liabilities (excluding liabilities with financial guarantee contracts) are subsequently measured at amortized cost using the effective interest method, with gains or losses arising from derecognition or amortizationrecognized in profit or loss.
9.5.3. 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 amortizationrecognized in accordance with the principles set out in Accounting Standard for Business Enterprises No. 14 - Revenue.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 9. Financial instruments - continued
9.6Derecognition 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.
9.7 Derivatives and embedded derivatives
Derivatives are initially measured at fair value at the date when the derivative contracts are entered into and are subsequently re-measured at fair value. The resulting gain or loss is 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.
9.8 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities, 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 and the net amount is presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 9. Financial instruments - continued
9.9 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. The consideration received from issuing equity instruments and net of transaction costs, are added to shareholders' equity.
All types of distributions (excluding stock dividends) made by the Group to holders of equityinstruments, are deducted from shareholders' equity. The Group does not recognize any changes in the fair value of equity instruments.
10. Receivables
10.1 Receivables for which bad debt provision is collectively assessed on a portfolio basis
|||
|-|-|
|Basis or monetary criteria for|A receivable that exceeds RMB 1 million (including RMB 1million) is deemed as an individually significant receivable bythe Group.|
|determining an individually||
|significant receivable||
||For receivables that are individually significant, the Groupassesses the receivables individually for impairment. For afinancial asset that is not impaired individually, the Groupincludes the asset in a group of financial assets with similarcredit risk characteristics and collectively assesses them forimpairment. Receivables for which an impairment loss isindividually recognized are not included in a collectiveassessment of impairment.|
|Method of determining provision for||
|receivables that are individually||
|significant and for which bad debt||
|provision is individually assessed||

10.2 Receivables for which bad debt provision is collectively assessed on a portfolio basis:
|||
|-|-|
|Basis for determining a portfolio||
|Portfolio 1|Receivables from government, petty cash advanced toemployees, security deposit, and receivables from relatedparties of the Company and its subsidiaries. Bad debt provisionis not recognized for such receivables since the possibility ofincurring bad debt losses is remote.|
|Portfolio 2|Portfolio 2 mainly includes receivablesarising from operatingactivities other than Portfolio 1.|
|Bad debt provision method for a portfolio||
|Portfolio 1|No bad debt provision|
|Portfolio 2|Based on percentage of accounts balances|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 10. Receivables - continued
10.2 Receivables for which bad debt provision is collectively assessed on a portfolio basis: - continued
10.2.1 Portfolios where percentage of accounts receivable method is used for bad debt provision:
|||||||
|-|-|-|-|-|-|
||||Provision as a proportion||Provision as a proportion|
||Name of portfolio||of accounts receivable (%)||of other receivables (%)|
|Portfolio 2||1.00||1.00||

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

11. Inventories
11.1 Categories of inventories
The Group's inventories mainly include raw materials and maintenance accessories etc. Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and other expenditures incurred in bringing the inventories to their present location and condition.
11.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method. 11.3 Basis for determining net 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 net realizable value is below the cost of inventories, 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, and
takes into consideration the purposes of holding inventories and effect of post balance sheet
events.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) 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 - continued
Provision for decline in value of 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.
12. Long-term equity investments
12.1 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.
12.2 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control, the investment cost of the long-term equity investment is the attributable share of the carrying amount of the shareholders' equity of the acquiree at the date of combination. For a long-term equity investment acquired through business combination not involving enterprises under common control, the investment cost of the long-term equity investment is the cost of acquisition. For a long-term equity investment acquired through business combination not involving enterprises under common control and achieved in stages, the investment cost of the long-term equity investment is the aggregate of the carrying amount of the equity interest held in the acquiree prior to the acquisition date and the cost of the additional investment at the acquisition date. The long-term equity investment acquired otherwise than through a business
combination is initially measured at its cost.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 12. Long-term equity investments- continued
12.2 Determination of investment cost - continued
Other long-term equity investments acquired through methods other than business combination, shall be recorded at cost initially. According to CAS No.22– Financial Instrument Recognition and Measurement, if the investor can exert significant influence on the investee or implement co-control but not solely-control, the cost of long-term investment shall be the fair value plus the newly invested cost.
12.3 Subsequent measurement and recognition of profit or loss
12.3.1. Long-term equity investment accounted for using the cost method
For long-term equity investments over which the Group does not have joint control or significant influence and without quoted prices in an active market and that fair values cannot be reliably measured, the Group accounts for such long-term equity investments using the cost method. Besides, long-term equity investments in subsidiaries are accounted for using the cost method in the Company's separate financial statements. A subsidiary is an investee that is controlled by the Group.
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits already declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity investment, investment income is recognized in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
12.3.2. Long-term equity investment accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An associate is an entity over which the Group has significant influence and a joint venture is an entity over which the Group exercises joint control along with other investors.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost. Where the initial investment cost is less than the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, the difference is 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, etc. at the acquisition date after making appropriate adjustments to conform with 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.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 12. Long-term equity investments - continued
12.3 Subsequent measurement and recognition of profit or loss - continued
12.3.2. Long-term equity investment accounted for using the equity method- continued 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 owners' equity of the investee other than net profit or loss are correspondingly adjusted to the carrying amount of the long-term equity investment, and recognized as other comprehensive income which is included in the capital reserve.
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 is reduced to zero. If the Group has incurred obligations to assume additional losses of the investee, a provision is recognized according to the expected obligation, and recorded as investment loss for the period. Where net profits are subsequently made by the investee, the Group resumes recognizing its share of those profits only after its share of the profits exceeds the share of losses previously not recognized.
12.3.3 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 included in the shareholders' equity attributable to the percentage interest disposed is transferred to profit or loss for the period.
12.4 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.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) 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.
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 and the effect of any expected costs of abandoning the asset at the end of its use is considered.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable that economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced part is 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 since the month subsequent to the one in which it is ready for intended use. The useful life, estimated net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 14. Fixed assets - continued
14.2 Depreciation of each category of fixed assets- continued
||||||||
|-|-|-|-|-|-|-|
|||||||Annual|
|||Depreciation||Residual value||depreciation rate|
|Category||period (years)||rate (%)||(%)|
|Buildings|5-50||5, 10||1.8-19||
|Port facilities|50||5||1.9||
|Machinery and equipment|3-20||5, 10||4.5-31.7||
|Transportation vehicles|3-14||5, 10||6.4-31.7||
|Fixed asset decorations|2-5||-||20-50||
|Office and other equipment|3-5||5, 10||18-31.7||

 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 Other explanations
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least once at each financial year-end, and accounts for any change as a change in an accounting estimate.
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal, the fixed asset is 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 its intended use. Once the impairment loss of construction in progress is recognized, it is not be reversed in any subsequent period.
16. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are 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. If construction or production of assets qualifying capitalization is interrupted
abnormally for a continuous 3-month-or-above period, the capitalization of borrowing costs
should be ceased until the assets resume construction or production. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 16. Borrowing costs - 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 capitalization period, any exchange differences of special loans in foreign currency should be capitalized, whereas exchange differences of general loans should be recorded in current profits and losses.
17. Intangible assets
17.1Intangible assets
Intangible assets include land use rights, trademarks and software.
An intangible asset is measured initially at cost. When an intangible asset with a finite useful life is available for use, its original cost less net residual value and any accumulated impairment losses is amortized over its estimated useful life using the straight-line method. An intangible asset with an indefinite useful life is not amortized. The amortization method, years of useful life and net residual value are as follows:
||||||||
|-|-|-|-|-|-|-|
|||||||Net residual|
|Category||Amortization method||Useful life (year)||value (%)|
|land use rights|Straight-line method||50||-||
|trademarks|Straight-line method||10||-||
|Software|Straight-line method||3-10||-||

 For an intangible asset with a finite useful life, the Group reviews the useful life and amortization method at the end of the period, and makes adjustments when necessary.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 18. Long-term assets impairment
The Group assesses at each balance sheet date whether there is any indication that the long-term equity investment, investment property measured at cost method, fixed assets, construction in progress and intangible assets with a finite useful life may be impaired. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. Intangible assets with indefinite useful life and intangible assets not yet available for use are tested for impairment annually, irrespective of whether there is any indication that the assets may be impaired.
If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the future cash flows expected to be derived from the asset.
If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognized in profit or loss for the period. Goodwill should be tested for impairment at least at the end of each year. For the purpose of impairment testing, goodwill is considered together with the related assets group(s), i.e., goodwill is reasonably allocated to the related assets group(s) or each of assets group(s) expected to benefit from the synergies of the combination. An impairment loss is 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 on the basis of the carrying amount of each asset (other than goodwill) in the group. Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent period.
19. Employee benefits
19.1 Accounting method for short-term employee benefits
Actually occurred short-term employee benefits are recognized as liabilities, with a corresponding charge to the profit or loss for the period or in the costs of relevant assets in the accounting period in which employees provide services to the Group. Staff welfare expenses incurred by the Group are recognized in profit or loss for the period or the costs of relevant assets based on the actually occurred amounts when it actually occurred. Non-monetary staff welfare expenses are measured at fair value.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 19. Employee benefits - continued
19.1 Accounting method for short-term employee benefits - continued
Payment made by the Group of social security contributions for employees such as premiums or contributions on medical insurance, work injury insurance and maternity insurance, etc. and payments of housing funds, as well as union running costs and employee education costs provided in accordance with relevant requirements, are calculated according to prescribed bases and percentages in determining the amount of employee benefits and recognized as relevant liabilities, with a corresponding charge to the profit or loss for the period or the costs of relevant assets in the accounting period in which employees provide services.
19.2 Accounting method for post-employment benefits
Post-employment benefits are all defined contribution. The contribution payable to the defined contribution plan is recognized as liabilities, with a corresponding charge to the profit or loss for the period or in the costs of relevant assets in the accounting period in which employees provide services to the Group.
19.3 Accounting method for termination benefits
When the Group provides termination benefits to employees, employee benefit liabilities are recognized for termination benefits, with a corresponding charge to the profit or loss for the period at the earlier of: (1) when the Group cannot unilaterally withdraw the offer of termination benefits because of the termination plan or a curtailment proposal; and (2) when the Group recognizes costs or expenses related to restructuring that involves the payment of termination benefits.
20. Provisions
A provision shall be recognized when the Group has a present obligation relating to a contingency and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a realizable estimate can be made of the amount of the obligation. At the balance sheet date, a provision is measured at the best estimate of the expenditure required to settle the present obligation after taking into account the risks and uncertainties surrounding a contingency and the time value of money. Where the effect of the time value of money is material, the best estimate shall be the present value as discounted from the expenditures expected to be required to settle the obligation.
If all or partial expenses needed for liquidation of a provisionon is expected to be compensated by a third party andthe compensation is sure to be received, the compensation should be recorded as assets separately with amount not exceeding the net book value of provision.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 21. Production safety fee
The Group calculates and includes the production safety fee in the current profit or loss and the special reserve based on the Administrative Rules on Provision and Use of Enterprise Production Safety Fee (Cai Qi[2012] No.16) jointly issued by the MoF and State Administration of Work Safety on 14 February 2012.
If the production safety fee set aside is used as expense, it should be written-off against special reserve directly. If the production safety feeset aside is used for fixed assets for safety purpose, it should beincluded in construction in progress and recognized as fixed assets once the construction of fixed asset for safety purpose reaches the ready-to-use status; at the same time, special reserve should be written-off against the cost of forming fixed assets with the same amount of
accumulated depreciation being recognized. Depreciation will not be calculated on such fixed assets for safety purpose in the future period.
22. Revenue
22.1 Revenue from rendering of services
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; (3) the stage of completion of the transaction can be determined reliably; and (4) the associated costs incurred or to be incurred can be measured reliably. Revenue from rendering of services is recognized using the percentage of completion method at the balance sheet date. The stage of completion of a transaction for rendering for services is determined based on services performed to date as a percentage of total services to be performed.
When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognized only to the extent of the costs incurred that will be recoverable, and the costs incurred are recognized as expenses for the period. When it is not probable that the costs incurred will be recovered, revenue is not recognized.
22.2Revenue from rendering of asset usage right
The revenue is recognized on accrual basis according to related contracts or agreements reached. 22.3Interest income
The interest income shall be calculated based on the tenure of the Group's monetary funds used by others and the actual interest rates used.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 23.Government grants
Government grants are transfer of monetary assets and non-monetary assets from the government to the Group at no consideration.
A government grant is recognized only when the Group can comply with the conditions attaching to the grant and the Group will receive the grant.If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable.
23.1 Basis of judgment and accounting methods for assets-related government grant
The Groups' government grant includes special grants for logistics park construction. As the grant relates to the final formation of assets, this grant is classified as assets-related government grant. 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.
23.2 Basis of judgment and accounting methods for income-related government grant
The Group's government grant includes governmental supporting funds and subsidies for modern logistics industry. The grant should is classified as income-related government grant.
For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred in subsequent periods, it is recognized as deferred income, and recognized 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, it is recognized immediately in profit or loss for the period.
24. Deferred tax assets and deferred tax liabilities
The income tax expenses include current income tax and deferred income tax.
24.1Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 24. Deferred tax assets and deferred tax liabilities- continued
24.2Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not 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 is generally recognized for all 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. At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates, according to tax laws, that are expected to apply in the period in which the asset is realized or the liability is settled.
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 shareholders' equity, in which case they are recognized in other comprehensive income or in shareholders' equity; and when they arise from business combinations, in which case they adjust the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it is no longer probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to be utilized. Such reduction in amount is reversed when it becomes probable that sufficient taxable profits will be available.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 24. Deferred tax assets and deferred tax liabilities - continued
24.2Deferred tax assets and deferred tax liabilities- continued
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to 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.
25. 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. 25.1 Accounting treatment on operating leases
25.1.1 The Group as lessee under operating leases
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for the period. Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are charged to profit or loss in the period in which they are actually incurred.
25.1.2 The Group as lessor under operating leases
Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs with more than an insignificant amount are capitalized when incurred, and are recognized in profit or loss on the same basis as rental income over the lease term. Other initial direct costs with an insignificant amount are charged to profit or loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the period in which they actually arise.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued 26. Changes in significant accounting policies and accounting estimates -continued 26.1 Changes in accounting policies
The Group has applied new standards of Accounting Standard for Business Enterprises No.39– Fair Value Measurement (CAS 39), Accounting Standard for Business EnterprisesNo.40–Joint Arrangements (CAS 40), Accounting Standard for Business Enterprises No.41– Disclosure of Interests in Other Entities (CAS 41) and amendments to Accounting Standard for Business EnterprisesNo.2–Long-term Equity Investments (CAS 2), Accounting Standard for Business EnterprisesNo.9–Employee Benefits (CAS 9), Accounting Standard for Business Enterprises No.30– Presentation of Financial Statements (CAS 30) and Accounting Standard for Business EnterprisesNo.33–Consolidated Financial Statements (CAS 33) issued by the Ministry of Finance in 2014 from 1 July, 2014; moreover, the Group has applied Accounting Standard for Business Enterprises No.37– Presentation of Financial Instruments (CAS 37) revised by the Ministry of Finance for the first time in 2014 annual financial statements.Changes in accounting policies incurred by adopting the previous new or amended CAS have been approved by the Company's Board of Directors meeting on 10 March 2015
Long-term equity investments
Before the implementation of Accounting Standard for Business EnterprisesNo.2–Long-term Equity Investments (Revised), the equity investments that the Group had no joint control or significant influence over the investee and were not quoted in an active market, also whose fair value could not be reliably measured were accounted for as long-term equity investments under the cost method.
After the implementation of Accounting Standard for Business EnterprisesNo.2–Long-term Equity Investments (Revised), the equity investments that the Group have no joint control or significant influence over the investee and are not quoted in an active market, also whose fair value cannot be reliably measured are accounted for as available-for-sale financial assets. Management of the Group believes that adopting CAS 2 has no material impact on the Group's financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued26、Changes in significant accounting policies and accounting estimates - continued 26.1 Changes in accounting policies - continued
Employee benefits
Before the implementation of Accounting Standard for Business EnterprisesNo.9–Employee Benefits (Revised), as to the accounting treatment of termination benefits, for termination of employment before the end of employment contract or compensation offers made to encourage employees to accept voluntary redundancy, if the Group had developed a formal termination plan or made an offer to encourage voluntary redundancy which was about to be implemented , and at the same time the Group could not unilaterally withdraw such termination plan or redundancy offer, provisions for the expected compensation for termination of employment would be recognized, with a corresponding charge to the profit or loss for the current period.
After the implementation of Accounting Standard for Business EnterprisesNo.9–Employee Benefits (Revised), details of accounting policies for termination benefits are set out in Note 4.19. Management of the Group believes that adopting CAS 9 has no material impact on the Group's financial statements.
Joint arrangements
Under Accounting Standard for Business EnterprisesNo.40–Joint Arrangements, there are two types of joint arrangements– joint operations and joint ventures. The type of joint arrangements is determined based on the rights and obligations of joint operator to the joint arrangements by considering the factors, such as the structure, the legal form of the arrangements, and the contractual terms, etc. A joint operation is a joint arrangement whereby the joint operators have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the joint ventures have rights to the net assets of the arrangement. Management of the Group believes that adopting CAS 40 has no material impact on the Group's financial statements.
Consolidated financial statements
Accounting Standard for Business EnterprisesNo.33–Consolidated Financial Statements (Revised) changes the definition of control such that an investor has control over an investee when a) it has power over the investee, b) it is exposed, or has rights, to variable returns from its involvement with the investee and c) has the ability to use its power to affect its returns; it also clarifies the accounting treatments for special transactions. Management of the Group believes that adopting CAS 40 has no material impact on the Group's financial statements.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued26、Changes in significant accounting policies and accounting estimates -continued 26.1 Changes in accounting policies - continued
Presentation of financial instruments
Accounting Standard for Business Enterprises No.37– Presentation of Financial Instruments (Revised) adds the requirements regarding offsetting and disclosures, the disclosure requirements on the transfer of financial assets, and revised disclosure requirements on the maturity analysis for financial assets and financial liabilities. The financial statements have been prepared in accordance with CAS 37, and the disclosure in the notes to the comparative financial statements had been adjusted accordingly.
Presentation of financial statements
Under Accounting Standard for Business Enterprises No.30– Presentation of Financial Statements (Revised), items of other comprehensive income are grouped into the following two categories: (1) items that will not be reclassified subsequently to profit or loss; (2) items that may be reclassified subsequently to profit or loss when specific conditions are met. CAS 30 also sets out the presentation requirements for other items (e.g. those held for sale). The financial statements have been prepared in accordance with CAS 30, and the presentation of comparative financial statements has been adjusted accordingly.
Fair value measurement
Accounting Standard for Business Enterprises No.39– Fair Value Measurement prescribes the measurements of fair value and disclosures about fair value measurements. Adopting CAS 39 has no material impact on the measurement of financial statement items, but will result in more extensive disclosures about fair value in the notes to the financial statements. Required disclosures have been made in the financial statements in accordance with CAS 39.
Disclosure of interests in other entities
Accounting Standard for Business Enterprises No.41– Disclosure of Interests in Other Entities applies to the disclosure of an entity's interest in subsidiaries, joint arrangements, associates and unconsolidated structured entities. Adopting CAS 41 results in more extensive disclosure in the notes to the entity's financial statements. Required disclosures have been made in the financial statements in accordance with CAS 41, and the notes to the comparative financial statements had been adjusted accordingly.
26.2 Changes in accounting estimates
No changes in accounting estimates occur this period.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(IV) TAXES
1. Major categories of taxes and tax rates
||||||
|-|-|-|-|-|
|Category of tax||Basis of tax computation||Tax rate|
||Revenues from water and electricitysupply and maintenance serviceprovided by general taxpayers||13%, 17% (note)||
||Revenues from taxable servicesprovided by small-scale taxpayers||3% (note)||
|Value-added tax ("VAT")|||||
||Revenues from stack (storage), loadingand unloading, delivery and portmanagement services provided bygeneral taxpayers||6%, 11%(note)||
||Taxable revenue from rendering ofservices, disposal of intangible assets orproperties||3% or 5%||
|Business tax|||||
||Actual payment for VAT and businesstaxes||5% or 7%||
|City maintenance and construction tax|||||
||Actual payment for VAT and businesstaxes||3%||
|Education surcharge|||||
|Enterprise income tax|Taxable income||16.5%, 25%||
|Urban land use tax|Actual occupation of land area||RMB1.50- 10.00/square meter||
||70% to 90% of the original cost of theproperty or rental income||1.2% of properties' residual value||
|Property tax|||||

Entities using different enterprise income tax rate:
||||
|-|-|-|
|Name of entity||Enterprise income tax rate|
||16.5%||
|Blogis (Hong Kong) Limited ("Baowan Hong Kong")|||
||16.5%||
|China Huitong (H.K.) Limited ("China Huitong")|||

Note 1: Baowan Logistics Holdings Co., Ltd. ("Baowan Holdings"), Tianjin Bingang Baowan International Logistics Co., Ltd. ("Bingang Baowan"), Tianjin Qingwu Baowan International Logistics Co., Ltd. ("Qingwu Baowan"), Shenyang Baowan International Logistics Co., Ltd. ("Shenyang Baowan"), Baowan Logistics (Wuhan) Yangluo Co., Ltd. ("Yangluo Baowan"), Baowan Feidong Logistics Holdings Co., Ltd. ("Feidong Baowan"),Xi'an Baowan International Logistics Co., Ltd. ("Xi'an Baowan"),Xianyang Baowan International Logistics Co., Ltd. ("Xianyang Baowan"), Wuxi Baowan Warehouse Equipment Co., Ltd. ("Wuxi Baowan"), Zhenjiang Shenjidi Warehouse Co., Ltd. ("Zhenjiang Warehouse"),Qindao Jiaozhou BaowanInternational LogisticsCo., Ltd. ("Jiaozhou Baowan "),Changzhou Baowan Logistics Co., Ltd. ("Changzhou Baowan") Jiaxing Baowan LogisticsCo., Ltd. ("Jiaxing Baowan ") and Jiangyin
BaowanInternational LogisticsCo., Ltd. ("Jiaxing Baowan "), PRC subsidiaries of the Company, are small scale taxpayers. The Company and the rest of its PRC subsidiaries are general taxpayers.
For the Company and subsidiaries recognized as general taxpayers, those in the business
of providing stack (storage), loading and unloading and port management service apply
to6% VAT rate; those in the business of providing delivery service apply to11% VAT
rate.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(IV) TAXES - continued
2. Tax incentives
Pursuant to Urban Land Use Tax Policy on the Logistics Enterprises with Commodity Warehousing Facilities (Cai Shui[2012] No. 13) issued by the MoF and SAT, from 1 January 2012 to 31 December 2014, the Group as a logistics enterprise, of which land being used for commodity warehousing facilities (including owner-occupied and rental) should be levied on urban land use tax based on50% of applicable tax rate of different land grades.
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1.Cash and bank balances
Unit: RMB
||||||
|-|-|-|-|-|
|||Closing balance||Opening balance|
|Cash:|||||
|RMB|8,081.23||13,971.13||
|Hong Kong Dollar|1,546.82||36.26||
|Euro|2,834.80||3,298.10||
|United States Dollar|612.00||-||
|Sub-total|13,074.85||17,305.49||
|Bank balances:|||||
|RMB|358,297,010.73||254,734,296.60||
|Hong Kong Dollar|16,447,116.81||44,771,086.89||
|United States Dollar|571,658.79||382,680.65||
|Sub-total|375,315,786.33||299,888,064.14||
|Other monetary funds:|||||
|RMB|-||5,000.00||
|Sub-total|-||5,000.00||
|Total|375,328,861.18||299,910,369.63||
|Including: Money deposited overseas(note )|96,827,266.05||22,297,354.33||

 Note :Bank balances deposited overseas are deposits of subsidiary China Huitong and Baowan Hong Kong. The remittance of funds is not restricted.
2．Notes receivables
Categories of notes receivable
Unit:RMB
|||||||
|-|-|-|-|-|-|
||Category||Closing balance||Opening balance|
|Bankacceptances||10,000,000.00||-||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 3. 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|||||
|||||||||||Net book||||||||||
|||||P|roportio||||Proportion|||||Proportion(|||Proportion(||Net book value|
|||||||||||value||||||||||
||Category||Amount||n(%)||Amount||(%)|||Amount||%)|Amount||%)|||
|Arispd|ccounts|-||-||-||-||-|-||-||-|-||-||
||eceivable that are|||||||||||||||||||
||ndividually|||||||||||||||||||
||ignificant and|||||||||||||||||||
||rovided for bad|||||||||||||||||||
||ebt individually|||||||||||||||||||
|A|ccounts receivable for which bad debt provision has been assessed by portfolios|||||||||||||||||||
|P|ortfolio 1|-||-||-||-||-|-||-||-|-||-||
|P|ortfolio 2|53,772,368.36||99.70||537,723.72||1.00||53,234,644.64|55,919,181.02||99.71||559,191.88|1.00||55,359,989.14||
|Sp|ubtotal of|53,772,368.36||99.70||537,723.72||1.00||53,234,644.64|55,919,181.02||99.71||559,191.88|1.00||55,359,989.14||
||ortfolios|||||||||||||||||||
|Arnswpai|ccounts|164,138.37||0.30||164,138.37||100.00||-|164,138.37||0.29||164,138.37|100.00||-||
||eceivable that are|||||||||||||||||||
||ot individually|||||||||||||||||||
||ignificant but for|||||||||||||||||||
||hich bad debt|||||||||||||||||||
||rovision has been|||||||||||||||||||
||ssessed|||||||||||||||||||
||ndividually|||||||||||||||||||
|T|otal|53,936,506.73||100.00||701,862.09||||53,234,644.64|56,083,319.39||100.00||723,330.25|||55,359,989.14||

 Accounts receivable that are not individually significant but for which bad debt provision has been assessed individually:
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Closing balance|||||||
||||||Bad debt||Proportion of|Basis of provision||
||Name of entity||Receivables||provision||provision (%)||Basis of provision|
|ST|henzhen Lanjing Offshore|164,138.37||164,138.37||100.00||Debtor is likely to go bankruptcy||
||echnology Co., Ltd.|||||||||

Accounts receivable portfolios for which bad debt provision has been assessed using the percentage of accounts receivable method:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||Closing balance||||
||||Bad debt provision||Proportion of provision|
|Name of portfolio||Carrying amount||Bad debt provision|(%)|
|Portfolio 2|53,772,368.36||537,723.72||1.00|

 Basis for determining the above portfolio: See Note(III)10.2.
(2) Provision recorded and written off in the current period
Provision recorded in the current period is RMB 50,863.71, and provision written off in the current period is RMB 72,331.87.
(3) Top five entities with the largest balances of accounts receivable
Unit: RMB
|||||
|-|-|-|-|
|Name of entity|Amount||Age|
|Wuhan Watsons Personal Care Providers Ltd.|5,227,081.20|Within 1 year||
|Huizhou Operating Branch, CNOOC (China) Co., Ltd.|3,606,599.60|Within 1 year||
|LF Logistics (China) Co., Ltd.|3,877,298.49|Within 1 year||
|Shenzhen Branch, CNOOC (China) Co., Ltd.|2,862,385.67|Within 1 year||
|Shenzhen Tuode Energy Services Ltd.|2,427,229.91|Within 1 year||
|Total|18,000,594.87|||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 4. Prepayments
(1) Aging analysis of prepayments is as follows:
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Closing balance||||Opening balance|||
|||||Proportion(|||||
|Aging||Amount||%)||Amount||Proportion(%)|
|Within 1 year|310,456.92||83.18||458,172.03||82.94||
|More than 3 years|62,763.49||16.82||94,259.56||17.06||
|Total|373,220.41||100.00||552,431.59||100.00||

 5. Interests receivable
(1) Interests receivable by categories
Unit: RMB
|||||
|-|-|-|-|
|Item|Closing balance||Opening balance|
|Financing product|3,406,186.30|4,797,363.01||
|Fixed deposits|167,125.00|124,158.50||
|Total|3,573,311.30|4,921,521.51||

 (2) There is no significant interest overdue for the Group.
6. Dividends receivable
(1) Dividends receivable
Unit: RMB
|||||
|-|-|-|-|
|Item|Opening balance||Closing balance|
|Shenzhen Chiwan Sembawang Engineering Co., Ltd. ("CSE")|48,000,000.00|-||

 (2) There is no dividends receivable aging more than a year for the Group.
7. Other receivables
(1)Disclosure of other receivables by categories
Unit: RMB
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Closing balance||||||||||Opening balance|||||||||
||||Carrying amount||||Bad debt provision||||||Carrying amount||||Bad debt provision|||||
||||||||||||Net book|||||||||||
|||||P|roportio|||P|roportion||||||Proportion(||||Proportion(||Net book value|
||||||||||||value|||||||||||
||Category||Amount||n(%)||Amount||(%)||||Amount||%)||Amount||%)|||
|Otispd|ther receivables|-||-||-||-||-||-||-||-||-||-||
||hat are|||||||||||||||||||||
||ndividually|||||||||||||||||||||
||ignificant and|||||||||||||||||||||
||rovided for bad|||||||||||||||||||||
||ebt individually|||||||||||||||||||||
|O|ther receivables for which bad debt provision has been assessed by portfolios|||||||||||||||||||||
|P|ortfolio 1|55,181,443.97||89.95||-||-||55,181,443.97||56,977,342.14||90.41||-||-||56,977,342.14||
|P|ortfolio 2|6,167,390.18||10.05||61,673.92||1.00||6,105,716.26||6,046,639.06||9.59||60,466.39||1.00||5,986,172.67||
|Sp|ubtotal of|61,348,834.15||100.00||61,673.92||||61,287,160.23||63,023,981.20||100.00||60,466.39||||62,963,514.81||
||ortfolios|||||||||||||||||||||
|Otiswpai|ther receivables|-||-||-||-||-||-||-||-||-||-||
||hat are not|||||||||||||||||||||
||ndividually|||||||||||||||||||||
||ignificant but for|||||||||||||||||||||
||hich bad debt|||||||||||||||||||||
||rovision has been|||||||||||||||||||||
||ssessed|||||||||||||||||||||
||ndividually|||||||||||||||||||||
|T|otal|61,348,834.15||100.00||61,673.92||||61,287,160.23||63,023,981.20||100.00||60,466.39||||62,963,514.81||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 7. Other receivables- continued
(1)Disclosure of other receivables by categories - continued
Other receivables portfolios for which bad debt provision has been assessed using the percentage of accounts receivable method:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Closing balance|||||
|||||||Proportion of provision|
|Name of portfolio||Other receivables||Bad debt provision||(%)|
|Portfolio 2|6,167,390.18||61,673.92||1.00||

 Basis for determining the above portfolio: See Note(III)10.2.
(2) Provision recorded and written off in the current period
Provision recorded in the current period is RMB 9,000.89, and provision written off in the current period is RMB 7,793.36.
(3) Disclosure of other receivables by nature:
Unit: RMB
||||||
|-|-|-|-|-|
|Nature||Closing balance||Opening balance(restated)|
|Amount due from operating activities|35,609,339.28||53,995,313.82||
|Deposits|23,313,515.74||5,425,328.07||
|Petty cash|968,908.98||1,831,848.15||
|Amount due from related parties|31,571.48||189,860.42||
|Others|1,425,498.67||1,581,630.74||
|Total|61,348,834.15||63,023,981.20||

 (4) Top five entities with the largest balances of other receivables
Unit: RMB
||||||
|-|-|-|-|-|
|||||Proportion of the amount to|
|Name of entity||Amount||the total other receivables (%)|
|Nanjing Lukou Airport Investment and Development Co., Ltd.|32,552,880.00||53.06||
|Nantong Construction Management Bureau|1,760,000.00||2.87||
|Wuxi Huishan District Economic and Information Technology|1,413,888.00||2.30||
|Bureau|||||
|Guangzhou Development Zone Construction and Environment|1,302,690.00||2.12||
|Management Bureau|||||
|Wuhan Hannan District Municipal Government|1,000,000.00||1.63||
|Total|38,029,458.00||61.98||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 8. Inventories
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|||Provision for|||Provision for||
||Gross carrying|decline in value of|Net carrying|Gross carrying|decline in value of|Net carrying|
||amount|inventories|amount|amount|inventories|amount|
|Maintenance accessories|961,758.65|-|961,758.65|866,059.32|-|866,059.32|
|Raw materials|92,287.77|-|92,287.77|130,297.23|-|130,297.23|
|Total|1,054,046.42|-|1,054,046.42|996,356.55|-|996,356.55|

 9. Other current assets
Unit: RMB
|||||
|-|-|-|-|
|Item|Closing balance||Opening balance(restated)|
|Bank financing products (note)|390,000,000.00|669,950,582.00||

 Note: Other current assets are bank financing products purchased by the Group. The expected annualized rates of return are between3.60% and5.70% and the maturities are between 7 and 168 days.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
10. Long-term equity investments
Unit: RMB
|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Changes in the current period|||||||||||||||||||
|||||||||||Ac|djustment on||||Announcing|||||||||
|||||||||I|nvestment income||other||||cash||||||||Closing|
||||||Increase in||Decrease in||recognized by||omprehensive||Other equity||dividends or||||||||balance on|
||Investee||Opening balance||investment||investment||equity method||income||changes||profits||Provision||Others||Closing balance||provision|
|1.|Associates|||||||||||||||||||||||
|C|SE|369,433,367.09||-||-||57,878,180.98||-||-||-||-||-||427,311,548.07||-||
|CC|hina Development Finance|101,105,139.15||-||-||4,096,895.16||-||-||-||-||-||105,202,034.31||-||
||o., Ltd. ("CDFC")|||||||||||||||||||||||
|SP(|henzhen Chiwan Offshore|5,715,189.15||-||-||(266,730.36)||-||-||-||-||-||5,448,458.79||-||
||etroleum Engineering Co,. Ltd|||||||||||||||||||||||
||"CPEC")|||||||||||||||||||||||
|T|otal|476,253,695.39||-||-||61,708,345.78||-||-||-||-||-||537,962,041.17||-||

 There is no restrictions to the ability of transferring funds to the Company from the investee entities which are held by the Company as long-term equity investment as at 31 December 2014.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 11. Investment properties
(1) Investment properties measured at cost
Unit: RMB
||||
|-|-|-|
|Item||Buildings|
|I. Total original carrying amount|||
|1.Opening carrying amount|1,173,950,726.49||
|2.Increase in the current period|401,099,227.09||
|(1) Purchase|309,356.00||
|(2) Transfer from Construction in Progress|400,789,871.09||
|3.Decrease in the current period|1,156,852.93||
|(1) Other transfer(note)|1,156,852.93||
|4.Closing carrying amount|1,573,893,100.65||
|II. Total accumulated provision for impairment losses of investment properties|||
|1.Opening carrying amount|269,734,271.09||
|2.Increase in the current period (note)|36,989,620.27||
|(1) Amount accrued or amortized|36,989,620.27||
|3.Decrease in the current period|-||
|4.Closing carrying amount|306,723,891.36||
|III. Total accumulated provision for impairment losses of investment properties|||
|1.Opening carrying amount|-||
|2.Increase in the current period|-||
|3.Decrease in the current period|-||
|4.Closing carrying amount|-||
|IV. Total net book value of investment properties|||
|1. Closing net book value|1,267,169,209.29||
|2.Openning net book value|904,216,455.40||

 Note: Decrease of RMB1,156,852.93 is due to adjustments on final completion settlement. (2) Investment properties that have not obtained certificates
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Net bookvalue||Reasons for not obtained certificates|
||380,134,410.89||Settlement procedures are still in progress||
|Buildings|||||
||120,545,146.56||Properties are built on leased land. See note (V) 14 for details||
|Buildings|||||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 12. Fixed assets
(1) Details of fixed assets are as follows:
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Office and|||
|||||||Machinery and||Transportation||Fixed assets||other|||
|Item||Buildings||Port facilities||equipment||vehicles||decorations||equipment||Total|
|I. Total original carrying amount|||||||||||||||
|1.Opening carrying amount|477,185,961.89||46,462,519.33||145,194,274.20||20,071,607.76||13,767,664.19||78,844,634.62||781,526,661.99||
|2.Increase in the current period|269,132,783.27||-||22,699,838.32||2,671,021.99||-||7,595,191.38||302,098,834.96||
|(1) Purchase|877,983.37||-||4,129,453.06||2,671,021.99||-||1,396,094.71||9,074,553.13||
|(2) Transfer from|268,254,799.90||-||18,570,385.26||-||-||6,199,096.67||293,024,281.83||
|Construction in|||||||||||||||
|Progress|||||||||||||||
|3.Decrease in the current period|-||-||654,765.08||818,226.64||-||763,634.68||2,236,626.40||
|(1) Disposal|-||-||654,765.08||818,226.64||-||763,634.68||2,236,626.40||
|4.Closing carrying amount|746,318,745.16||46,462,519.33||167,239,347.44||21,924,403.11||13,767,664.19||85,676,191.32||1,081,388,870.55||
|II.Total accumulated depreciation|||||||||||||||
|1.Opening carrying amount|92,648,184.94||33,240,759.71||67,384,689.08||12,225,083.30||13,767,664.19||45,881,826.31||265,148,207.53||
|2.Increase in the current period|21,548,569.17||945,634.32||11,661,993.57||2,227,827.97||-||4,627,573.41||41,011,598.44||
|(1) Amount accrued|21,548,569.17||945,634.32||11,661,993.57||2,227,827.97||-||4,627,573.41||41,011,598.44||
|3.Decrease in the current period|-||-||584,565.59||777,315.31||-||722,252.00||2,084,132.90||
|(1) Disposal|-||-||584,565.59||777,315.31||-||722,252.00||2,084,132.90||
|4.Closing carrying amount|114,196,754.11||34,186,394.03||78,462,117.06||13,675,595.96||13,767,664.19||49,787,147.72||304,075,673.07||
|III. Total accumulated provision for|||||||||||||||
|impairment losses|||||||||||||||
|1.Opening carrying amount|-||-||-||-||-||-||-||
|2.Increase in the current period|-||-||-||-||-||-||-||
|3.Decrease in the current period|-||-||-||-||-||-||-||
|4.Closing carrying amount|-||-||-||-||-||-||-||
|IV. Total net book value of|||||||||||||||
|investment properties|||||||||||||||
|1. Closing net book value|632,121,991.05||12,276,125.30||88,777,230.38||8,248,807.15||-||35,889,043.60||777,313,197.48||
|2.Openning net book value|384,537,776.95||13,221,759.62||77,809,585.12||7,846,524.46||-||32,962,808.31||516,378,454.46||

 (2) Fixed assets that have not obtained certificates
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Net bookvalue||Reasons for not obtained certificates|
|Buildings|15,475,142.18||Settlement procedures are still in progress||
|Buildings|8,530,819.57||Properties are built on leased land. See note (V) 14 for details||

 13.Construction in progress
(1)Details of construction in progress are as follows:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance(restated)|||
|||Provision for|Net carrying||Provision for|Net carrying|
|Item|Carrying amount|impairment losses|amount|Carrying amount|impairment losses|amount|
|Wuhan Baowan logistic park|234,242,522.39|-|234,242,522.39|22,084,639.62|-|22,084,639.62|
|construction|||||||
|Bingang Baowan logistic park|27,431,368.64|-|27,431,368.64|25,497,427.30|-|25,497,427.30|
|construction|||||||
|Zhenjiang Warehouse logistic park|9,204,709.43||9,204,709.43|-|-|-|
|construction|||||||
|Wuxi Baowan logistic park|2,451,818.66|-|2,451,818.66|40,000.00|-|40,000.00|
|construction|||||||
|Shenyang Baowan logistic park|646,090.10|-|646,090.10|46,090.10|-|46,090.10|
|construction|||||||
|Longquan Baowan logistic park|461,305.06|-|461,305.06|48,716,488.49|-|48,716,488.49|
|construction|||||||
|Nantong Baowan logistic park|400,164.78|-|400,164.78|9,040,855.12|-|9,040,855.12|
|construction|||||||
|Xi'an Baowan logistic park|190,000.00||190,000.00|-|-|-|
|construction|||||||
|Guangzhou Baowan lot A logistic park|129,928.80|-|129,928.80|199,349,637.54|-|199,349,637.54|
|construction|||||||
|Xianyang Baowan logistic park|49,000.00||49,000.00|-|-|-|
|construction|||||||
|Nanjing Baowan logistic park|-|-|-|63,482,722.70|-|63,482,722.70|
|construction|||||||
|Other miscellaneous constructions|25,249,719.48|-|25,249,719.48|7,900,598.15|-|7,900,598.15|
|Total|300,456,627.34|-|300,456,627.34|376,158,459.02|-|376,158,459.02|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
13.Construction in progress - continued
(2) Changes in constructioninprogress
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount injected||||Interest|||
||||||Transferred to|as a proportion||Amount of|Including:|capitalization|||
|||Opening|Increase in the|Transferred to|investment|of budget|Construction|accumulated|capitalized interest|rate for the|||
|Item name|Budget amount|balance(restated)|current period|fixed assets|properties|amount (%)|progress|capitalized interest|for the period|period (%)|Source of funds|Closing balance|
|Wuhan Baowan logistic park|463,710,000.00|22,084,639.62|212,157,882.77|-|-|50.51|50.51|4,656,439.93|4,576,715.48|5.93|Self-financing andborrowings|234,242,522.39|
|construction|||||||||||||
|Bingang Baowan logistic park|343,600,000.00|25,497,427.30|1,933,941.34|-|-|7.98|7.98|-|-|-|Self-financing|27,431,368.64|
|construction|||||||||||||
|Zhenjiang Warehouse logistic park|362,220,000.00|-|9,204,709.43|-|-|2.54|2.54|-|-|-|Self-financing|9,204,709.43|
|construction|||||||||||||
|Wuxi Baowan logistic park|361,530,000.00|40,000.00|2,411,818.66|-|-|0.68|0.68|-|-|-|Self-financing|2,451,818.66|
|construction|||||||||||||
|Shenyang Baowan logistic park|433,240,000.00|46,090.10|600,000.00|-|-|0.15|0.15|-|-|-|Self-financing|646,090.10|
|construction|||||||||||||
|Longquan Baowan logistic park|319,070,000.00|48,716,488.49|40,548,103.59|33,966,973.44|54,836,313.58|73.70|100.00|13,918,583.83|2,331,950.25|6.05|Self-financing andborrowings|461,305.06|
|construction|||||||||||||
|Nantong Baowan logistic park|341,040,000.00|9,040,855.12|75,229,622.72|34,469,242.19|49,401,070.87|28.46|28.46|-|-|-|Self-financing|400,164.78|
|construction|||||||||||||
|Xi'an Baowan logistic park|448,120,000.00|-|190,000.00|-|-|0.04|0.04|-|-|-|Self-financing|190,000.00|
|construction|||||||||||||
|Guangzhou Baowan lot A logistic|445,420,000.00|199,349,637.54|139,009,139.58|152,939,770.98|185,289,077.34|72.75|100.00|13,687,124.73|10,061,996.45|6.08|Self-financing andborrowings|129,928.80|
|park construction|||||||||||||
|Xianyang Baowan logistic park|549,780,000.00|-|49,000.00|-|-|0.01|0.01|-|-|-|Self-financing|49,000.00|
|construction|||||||||||||
|Nanjing Baowan logistic park|305,630,000.00|63,482,722.70|110,186,039.34|70,425,295.22|103,243,466.82|62.88|100.00|4,374,553.84|3,984,415.57|5.67|Self-financing andborrowings|-|
|construction|||||||||||||
|Other miscellaneous constructions|Not applicable|7,900,598.15|26,592,063.81|1,223,000.00|8,019,942.48|Not applicable|Not applicable|-|-|-|Self-financing|25,249,719.48|
|Total||376,158,459.02|618,112,321.24|293,024,281.83|400,789,871.09|||36,636,702.33|20,955,077.75|||300,456,627.34|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 14. Intangible assets
(1) Details of intangible assets
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item||Land use rights||Trademarks||Software||Total|
|I. Total original carrying amount|||||||||
|1.Opening carrying amount|1,591,794,755.33||230,500.00||1,711,223.72||1,593,736,479.05||
|2.Increase in the current period|138,879,480.40||-||-||138,879,480.40||
|(1) Purchase|138,879,480.40||-||-||138,879,480.40||
|3.Decrease in the current period|1,116,672.00||-||-||1,116,672.00||
|(1) Disposal|1,116,672.00||-||-||1,116,672.00||
|4.Closing carrying amount|1,729,557,563.73||230,500.00||1,711,223.72||1,731,499,287.45||
|II. Total accumulated amortization|||||||||
|1.Opening carrying amount|350,263,775.77||163,441.38||1,205,228.38||351,632,445.53||
|2.Increase in the current period|38,478,455.55||23,049.96||178,156.66||38,679,662.17||
|(1) Amortization accrued|38,478,455.55||23,049.96||178,156.66||38,679,662.17||
|3.Decrease in the current period|-||-||-||-||
|4.Closing carrying amount|388,742,231.32||186,491.34||1,383,385.04||390,312,107.70||
|III．Total Provision for impairment losses|||||||||
|1.Opening carrying amount|-||-||-||-||
|2.Increase in the current period|-||-||-||-||
|3.Decrease in the current period|-||-||-||-||
|4.Closing carrying amount|-||-||-||-||
|III. Total net book value|||-||-||-||
|1. Closing net book value|1,340,815,332.41||44,008.66||327,838.68||1,341,187,179.75||
|2.Openning net book value|1,241,530,979.56||67,058.62||505,995.34||1,242,104,033.52||

 (2) Intangible assets that have not obtained certificates
Unit: RMB
||||||
|-|-|-|-|-|
|||||Reasons for not obtained|
|Item||Net bookvalue||certificates|
|Land use rights|297,935,579.90||Note 1||
|Land use rights|10,953,484.18||Note 2||

Note 1: Land use right and dock use right are assets leased from Nanshan Group, the controlling shareholder of the Company. In 1984, Nanshan Group contributed the land use right and dock use right for 25 years as the investment capital to the Company. The term of the use rights expired on 15 July 2009. On 18 July 2006, the Company and Nanshan Group entered intoAgreement on Land Use, which specifies that the Company can continue to lease the land and dock by means of operating lease after the expiration. The lease term is 25 years that starts from 15 July 2009 and ends on14 July 2034. The Company has paid
off all the rentals in a lump sum. As at31 December 2014, Nanshan Group has not
obtained the use right certificate of the above mentioned land and dock.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 14. Intangible assets- continued
(2) Intangible assets that have not obtained certificates - continued
Note 2: Use right of the eastern landis an asset leased from Nanshan Group, the controlling shareholder of the Company, by means of operating lease in 1997. The lease term is 25 years from 1 August 1997 to 31 July 2022. The Company has paid off all the rentals in a lump sum. Given that Nanshan Group has not obtained the use right certificateof the mentioned land, in addition to the guarantee of the Company's legal use right on the land, Nanshan Group entered into anAgreementon Immunity from Liabilities Caused by the Land Usewith the Company on 18 July 1997, agreeing to compensate the Company for any losses, expenditures and liabilities associated with the leased land. As at31 December 2014, Nanshan Group has not obtained use right certificate of the above mentioned land and dock.
15. Deferred tax assets
(1)Deferred tax assets that are not offset
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||Deductible|||
|||Deductible||||temporary|||
|||temporary||||differences at the||Deferred tax assets|
|||differences at the||Deferred tax assets||beginning of the||at the beginning of|
|||end of the||at the end of the||reporting period||the reporting|
|Item||reporting period||reporting period||(restated)||period (restated)|
|Provision for impairment|712,367.20||178,091.80||681,502.93||170,375.73||
|losses of assets|||||||||
|Intangible assets|28,209.60||7,052.40||28,415.11||7,103.78||
|amortization|||||||||
|Deductible losses|67,730,431.04||16,932,607.76||65,981,225.00||16,495,306.25||
|Total|68,471,007.84||17,117,751.96||66,691,143.04||16,672,785.76||

 According to the profit forecast, the Group believes that it is probable that sufficient taxable profits will be available in future periods to offset the deductible temporary differences and deductible losses. Therefore, the related deferred tax assets are recognized.
(2)Details of unrecognized deferred tax assets
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Deductible temporary differences|51,168.81||102,293.71||

 16. Other non-current assets
Unit: RMB
||||||
|-|-|-|-|-|
|||||Opening balance|
|Item||Closing balance||(restated)|
|Prepayments for land use rights (note)|250,913,490.35||26,891,614.92||
|Prepayments for construction|515,187.00||16,688,269.48||
|Others|2,143,943.29||585,092.78||
|Total|253,572,620.64||44,164,977.18||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 16. Other non-current assets- continued
Note: Closing balance represents prepayments for land use rights of the Company's subsidiaries, namelyXi’an Baowan, Yangluo Baowan, Xianyang Baowan, Zhenjiang Warehouse and Jiaozhou Baowan.
17. Accounts payable
(1) Details of accounts payable are as follows:
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Rents|5,353,209.50||6,132,919.30||
|Construction costs|2,851,624.77||1,486,193.95||
|Service charges|152,584.64||335,614.64||
|Others|2,000,590.33||2,674,963.13||
|Total|10,358,009.24||10,629,691.02||

 (2) There is no significant accounts payable aging more than a year in the closing balance. 18.Receipts in advance
(1)Details of receipts in advance are as follows:
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Storage service fees collected in advance|5,065,408.13||6,057,344.09||
|Others|2,493.08||72,809.17||
|Total|5,067,901.21||6,130,153.26||

 (2) There are no significant receipts in advance aging more than a year in the closing balance. 19. Employee benefits payable
(1) Details of employee benefits payable are as follows
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Opening balance||Increase in the||Decrease in the|||
|Item||(restated)||current period||current period||Closing balance|
|I. Short-term compensation|29,209,912.52||76,152,493.18||73,952,766.55||31,409,639.15||
|II. Post-employment benefits-defined|14,117.25||8,409,652.16||8,408,917.58||14,851.83||
|contribution plans|||||||||
|III.Termination benefits|-||678,330.90||678,330.90||-||
|IV. Other welfare due within one year|-||99,858.09||99,858.09||-||
|Total|29,224,029.77||85,340,334.33||83,139,873.12||31,424,490.98||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 19. Employee benefits payable- continued
(2) Short-term Compensation
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Opening balance||Increase in the|Decrease in thecurrent period|||
|Item||(restated)||current period|||Closing balance|
|I. Wages or salaries, bonuses, allowances|28,308,082.80||63,596,603.83||62,014,709.77|29,889,976.86||
|and subsidies||||||||
|II. Staff welfare|8.00||4,566,863.58||4,565,747.58|1,124.00||
|III. Social security contributions|7,260.30||2,650,710.76||2,650,332.94|7,638.12||
|Including: Medical insurance|5,378.00||2,110,399.58||2,110,119.74|5,657.84||
|Work-related injury insurance|1,210.05||350,576.60||350,513.60|1,273.05||
|Birth insurance|672.25||189,734.58||189,699.60|707.23||
|IV. Housing funds|-||2,946,058.24||2,946,058.24|-||
|V. Expenditure for trade union and|894,561.42||2,392,256.77||1,775,918.02|1,510,900.17||
|employee training||||||||
|Total|29,209,912.52||76,152,493.18||73,952,766.55|31,409,639.15||

 (3) Post-employment benefits- defined contribution plans
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Opening balance||Increase in thecurrent period||Decrease in the|||
|Item||(restated)||||current period||Closing balance|
|I. Basic endowment insurance|13,445.00||5,743,667.23||5,742,967.63||14,144.60||
|II. Unemployment insurance|672.25||286,927.50||286,892.52||707.23||
|III.Enterprise annuity payment|-||2,379,057.43||2,379,057.43||-||
|Total|14,117.25||8,409,652.16||8,408,917.58||14,851.83||

 Note:The Group participates in the social security contributions and the unemployment insurance plan established by government institutions as required. According to such plans, the Company and its subsidiaries contributes amounts according to localsupervision agency's requirementrespectively to such plans. The Group does not undertake further payment obligations other than the above monthly contributions. Corresponding expenses are charged to profit or loss for the period or costs of the related assets when incurred. During the year, the Group shall contribute RMB 5,743,667.23 and RMB 286,927.50 respectively to the social security contributions and the unemployment insurance plan (2013: RMB 5,272,681.17 and RMB 277,775.43). As at 31 December 2014, the Group still have outstanding contributions of RMB 14,144.60 and RMB 707.23(31 December 2013: RMB 13,445.00 and RMB 672.25) to be paid to the social security contributions and the unemployment insurance plan. The related outstanding contributions have been made after the reporting period.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 20. Taxes payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance (restated)|
|Enterprise income tax|31,951,111.72|39,565,976.92|
|Urban land use tax|2,976,407.34|2,739,395.77|
|Property Tax|2,646,773.08|1,961,612.84|
|Value added tax|1,855,329.54|2,446,581.15|
|Individual income tax|196,143.01|124,773.82|
|City construction and maintenance tax|156,246.63|180,087.09|
|Business tax|140,262.31|200,492.21|
|Educational surcharges|126,483.49|144,748.77|
|Others|390,421.54|459,065.85|
|Total|40,439,178.66|47,822,734.42|

 21. Interest payable
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Item||Closing balance||Opening balance (restated)|
|M|edium term note interest|19,594,520.52||19,594,520.53||
|N|anshan Group borrowings interest|15,099,874.99||8,729,309.69||
|C|orporate bond interest|1,189,716.67||1,189,716.67||
|B|ank interest|520,699.26||797,034.24||
|T|otal|36,404,811.44||30,310,581.13||

 22. Other payables
(1)Details of other payables are as follows:
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance(restated)|
|Construction costs|341,203,333.15||195,834,595.98||
|Deposits|49,408,555.90||39,982,668.98||
|Others|48,423,028.33||21,587,812.84||
|Total|439,034,917.38||257,405,077.80||

 (2)SignificantOther payables aged more than a year
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Reason for not repay or carry over|
|Customer 1|10,133,058.12||Construction balance not reaching payment terms||
|Customer 2|3,115,639.14||Construction balance not reaching payment terms||
|Customer 3|2,894,476.54||Construction balance not reaching payment terms||
|Customer 4|2,014,469.14||Construction balance not reaching payment terms||
|Customer 5|1,977,889.25||Storage deposit not reaching payment terms||
|Total|20,135,532.19||||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 23. Non-current liabilities due within one year
(1) Details of non-current liabilities due within one year are as follows:
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Long-term borrowings due within one year|-||309,700,000.00||
|Other non-current liabilities due within one year|1,349,351.16||1,349,351.16||
|Total|1,349,351.16||311,049,351.16||

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

 24.Other current liabilities
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Loans borrowed from Nanshan Group (note)|300,000,000.00||-||

 Note: Closing balance is short-term loan due to Nanshan Group. The borrowing period dates from 3 July 2014 to 3 July 2015, and the annual borrowing rate is5.50%.
25. Long-term borrowings
(1) Categories of long-term borrowings
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Guaranteed loans (note)|345,491,134.28|165,048,306.62|
|Unsecured and non-guaranteed loans|45,325,551.36|20,395,341.34|
|Total|390,816,685.64|185,443,647.96|

 The annual interest rates on the above borrowings rangefrom6.08% to 6.8775%(31 December 2013:6.0800% to6.5500%).
Note:See note (X) 5(3) for details.
26. Bonds payable
(1) Details of bonds payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Medium term note|400,000,000.00|400,000,000.00|
|Corporate bond|565,677,500.00|564,195,500.00|
|Total|965,677,500.00|964,195,500.00|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 26. Bonds payable- continued
(2) Changes in the current period of bonds payable
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Issue in the||Premium or|||
||||Maturity|||current|Accrued interest|discount|Repay for the||
|Item|Par value|Issue date|term|Issued amount|Opening balance|period|for the period|amortization|period|Closing balance|
|Medium term|400,000,000.00|07/03/2012|5 years|400,000,000.00|400,000,000.00|-|23,999,900.00|-|-|400,000,000.00|
|note (note 1)|||||||||||
|Corporate bond|570,000,000.00|17/12/2012|7 years|570,000,000.00|564,195,500.00|-|32,945,999.98|-|-|565,677,500.00|
|(note 2)|||||||||||
||970,000,000.00|||970,000,000.00|964,195,500.00|-|56,945,899.98|-|-|965,677,500.00|
|Total|||||||||||

 Note 1: The Company issued the five-year medium term note, which starts from 9 March 2012 and ends on 9 March 2017, at the par value of RMB400, 000,000.00 with fixed annual interest rate of6% on 7 March 2012. The interests are paid yearly, and the principal will be repaid in a lump sum upon maturity. Nanshan Group has provided a full-amount irrevocable guarantee with joint-liability for the medium term note.
Note 2: Pursuant to Approval for Publicly Issuing Corporate Bond of Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (Zheng Jian Xu Ke[2012] No. 1142) issued by China Securities Regulatory Commission, the Company issued the seven-year corporate bond at the par value of RMB570,000,000.00 on 17 December 2012. In the first five interest-bearing years, the annual interest rate is fixed at5.78%. The interests will be paid yearly, and the principal will be repaid in a lump sum upon maturity. As specified in the prospectus of the corporate bond, the Company has the right to decide whether to raise the interest rate of the corporate bond for the remaining two years by 1 to 100 basis points at the end of the fifth year. After the Company publicly announces the decision on changing interest rate, the bond holders are entitled to sell all or partial of the bonds held by them to the Company at par value. Nanshan Group has provided a full-amount irrevocable guarantee with joint-liability for the corporate bond. 27. Long-term payable
Unit: RMB
||||||
|-|-|-|-|-|
|Entity||Closing balance||Opening balance|
|Nanshan Group|251,417,853.31||212,011,691.49||

 Note: The long-term payable is the fund borrowed by the Group from the Company's parent company Nanshan Group. Pursuant to the agreement of long-term borrowings with Nanshan Group, the borrowings should be used forthe construction and subsequent operation of the logistics parks of the Company's subsidiaries. The interests willaccrueon the actual amounts borrowed atthe interest rate based on market rates of the same period.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued28．Deferred income
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||Opening||Increase in the||Decrease in the||Closing|||
|Item||balance(restated)||current period||current period||balance||Cause of formation|
||-||1,500,000.00||-||1,500,000.00||Special subsidyfor purchasingfixed assets||
|Government Subsidy|||||||||||

 Items concerning government subsidy:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount|||||
|||||Increase of||recognized in|||||
|||||government||non-operating||||Related to|
|||Opening||subsidy in the||income in the||||assets or|
|Liabilities items||balance||current period||current period||Closing balance||revenue|
|Guangzhou|-||1,500,000.00||-||1,500,000.00||Related toassets||
|Baowan lot A|||||||||||
|logistic park|||||||||||
|construction|||||||||||

29. Other non-current liabilities
Unit: RMB
||||||
|-|-|-|-|-|
|||||Opening balance|
|Item||Closing balance||(restated)|
|Medium and long-term borrowings|910,000,000.00||897,430,360.00||
|Rental received in advance|19,006,206.66||20,415,611.82||
|Total|929,006,260.66||917,845,971.82||
|Less: Rental received in advance to be amortized within one year|1,349,351.16||1,349,351.16||
|Non-current liabilities due after one year|927,716,909.50||916,496,020.66||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 30. Share capital
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Changes for the period|||||||||||
|||||||||Capitalization|||||||
|||||New issue||||of surplus|||||||
|Item||Opening balance||of shares||Bonus issue||reserve||Others||Sub-total||Closing balance|
|2014:|||||||||||||||
|I. Restricted tradable|||||||||||||||
|shares|||||||||||||||
|1. State-owned shares|-||-||-||-||-||-||-||
|2. State-owned legal|119,420,000.00||-||-||-||-||-||119,420,000.00||
|person shares|||||||||||||||
|3. Other domestic-owned|-||-||-||-||-||-||-||
|shares|||||||||||||||
|4. Other foreign-owned|-||-||-||-||-||-||-||
|shares|||||||||||||||
|Total restricted tradable|119,420,000.00||-||-||-||-||-||119,420,000.00||
|shares|||||||||||||||
|II. Tradable shares|||||||||||||||
|1. Ordinary shares|-||-||-||-||-||-||-||
|denominated in RMB|||||||||||||||
|2. Foreign-owned shares|111,180,000.00||-||-||-||-||-||111,180,000.00||
|listed domestically|||||||||||||||
|3. Foreign-owned shares|-||-||-||-||-||-||-||
|listed overseas|||||||||||||||
|4. Others|-||-||-||-||-||-||-||
|Total tradable shares|111,180,000.00||-||-||-||-||-||111,180,000.00||
|III. Total shares|230,600,000.00||-||-||-||-||-||230,600,000.00||
|2013:|||||||||||||||
|I. Restricted tradable|||||||||||||||
|shares|||||||||||||||
|1. State-owned shares|-||-||-||-||-||-||-||
|2. State-owned legal|119,420,000.00||-||-||-||-||-||119,420,000.00||
|person shares|||||||||||||||
|3. Other domestic-owned|-||-||-||-||-||-||-||
|shares|||||||||||||||
|4. Other foreign-owned|-||-||-||-||-||-||-||
|shares|||||||||||||||
|Total restricted tradable|119,420,000.00||-||-||-||-||-||119,420,000.00||
|shares|||||||||||||||
|II. Tradable shares|||||||||||||||
|1. Ordinary shares|-||-||-||-||-||-||-||
|denominated in RMB|||||||||||||||
|2. Foreign-owned shares|111,180,000.00||-||-||-||-||-||111,180,000.00||
|listed domestically|||||||||||||||
|3. Foreign-owned shares|-||-||-||-||-||-||-||
|listed overseas|||||||||||||||
|4. Others|-||-||-||-||-||-||-||
|Total tradable shares|111,180,000.00||-||-||-||-||-||111,180,000.00||
|III. Total shares|230,600,000.00||-||-||-||-||-||230,600,000.00||

 Note: The par value per share of the above shares is RMB1.00.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 31. Capital reserve
Unit: RMB
||||||
|-|-|-|-|-|
|||Increase in the|Decrease in the||
|Item|Opening balance|period|period|Closing balance|
|Capital premium|124,868,225.67|-|-|124,868,225.67|
|Other capital reserve|109,272,960.42|-|-|109,272,960.42|
|Total|234,141,186.09|-|-|234,141,186.09|

32．Other comprehensive income
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Amount for the current period|||||||||||
|||||||Less：Net|||||||||
|||||||amount|||||||||
|||||||included in|||||||||
|||||||other|||||||||
|||||||comprehensive|||||||||
|||||||income in the||||Post-tax net|||||
|||||||prior periods||||amount||Post-tax net|||
|||||Before-tax||that is||||belonging to||amount|||
|||Opening||amount for||transferred to||||parent||belonging to|||
|||balance||the current||profit or loss||Less：||company||minority||Closing|
|Item||(restated)||period||for the period||income tax||owners||shareholders||balance|
|I. Net amount included in other|-||-||-||-||-||-||-||
|comprehensive income that|||||||||||||||
|cannot be transferred to profit|||||||||||||||
|or loss in the future|||||||||||||||
|Including：Changes in net|-||-||-||-||-||-||-||
|liability and net asset arising|||||||||||||||
|from recalculation of defined|||||||||||||||
|benefit plan|||||||||||||||
|Share of other comprehensive|-||-||-||-||-||-||-||
|income of the investee that|||||||||||||||
|cannot be transferred to profit|||||||||||||||
|or loss accounted for using the|||||||||||||||
|equity method|||||||||||||||
|II. Net amount included in other|603,045.89||63,383.20||-||-||49,033.25||14,349.95||652,079.14||
|comprehensive income that can|||||||||||||||
|be transferred to profit or loss in|||||||||||||||
|the future|||||||||||||||
|Including：Share of other|-||-||-||-||-||-||-||
|comprehensive income of the|||||||||||||||
|investee that can be transferred|||||||||||||||
|to profit or loss accounted for|||||||||||||||
|using the equity method|||||||||||||||
|Gains (losses) arising from|-||-||-||-||-||-||-||
|available-for-sale financial|||||||||||||||
|assets|||||||||||||||
|held-to-maturity investment that|-||-||-||-||-||-||-||
|is reclassified as financial assets|||||||||||||||
|available for sale|||||||||||||||
|Effective gains(losses) arising|-||-||-||-||-||-||-||
|from cash flow hedging|||||||||||||||
|instruments|||||||||||||||
|Translation differences of|603,045.89||63,383.20||-||-||49,033.25||14,349.95||652,079.14||
|financial statements|||||||||||||||
|denominated in foreign|||||||||||||||
|currencies|||||||||||||||
|Total|603,045.89||63,383.20||-||-||49,033.25||14,349.95||652,079.14||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 33. Special reserve
Unit: RMB
||||||
|-|-|-|-|-|
|||Increase in the|Decrease in the||
|Item|Opening balance|period|period|Closing balance|
|Production safety fee|2,622,730.81|2,401,076.31|783,659.63|4,240,147.49|

 34. Surplus reserves
Unit: RMB
||||||
|-|-|-|-|-|
|||Increase in the|Decrease in the||
|Item|Opening balance|period|period|Closing balance|
|Statutory surplus reserve|200,980,383.36|14,888,222.68|-|215,868,606.04|
|Discretionary surplus reserve|83,704,364.36|7,511,659.85|-|91,216,024.21|
|Total|284,684,747.72|22,399,882.53|-|307,084,630.25|

 35. Unappropriated profits
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Before adjustment: Unappropriated profits at the end of prior year|720,937,883.66|557,522,716.65|
|Adjustment: Total unappropriated profits at the beginning of the year(note 1)|(3,314,195.62)|627.16|
|After adjustment: Unappropriated profits at the beginning of the year|717,623,688.04|557,523,343.81|
|Add: Net profit attributable to owners of the Company for the period|218,544,184.50|204,249,571.43|
|Less: Appropriation to statutory surplus reserve (note 2)|14,888,222.68|15,023,319.70|
|Appropriation to discretionary surplus reserve (note 3)|7,511,659.85|5,835,337.45|
|Declaration of dividends on ordinary shares|-|23,290,570.05|
|Effects of business combination involving enterprises under common control|0.61|-|
|Unappropriated profits at the end of the year|913,767,989.40|717,623,688.04|

 Note 1: Business combination involving enterprises under common control resulted in changes of combination scope, which affected RMB 627.16 and RMB (3,314,195.62) net profits attributable to owners of the Company for the opening balance and closing balance. Note 2: According to the Articles of Association, the Company is required to transfer10% of its net profit to the statutory surplus reserve.
Note 3: According to the resolution of 2013 shareholders' meeting on 16 May 2014, the Company appropriated the discretionary surplus reserve based on5% of the Company's net profit, the total amount of which is RMB7,511,659.85.
Note 4: As at 31 December 2014, the balance of the Group's unappropriated profits includes appropriation to surplus reserve by subsidiaries amounting to RMB56,518,506.74 (31 December 2013: RMB56,518,506.74).
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 36. Operating income and operating costs
Unit: RMB
||||||
|-|-|-|-|-|
||Amount recognized in the current period||Amount recognized in the prior period||
|Item|Operating income|Operating cost|Operating income|Operating cost|
|Principal operating activities|704,037,704.37|256,773,472.87|676,995,055.04|240,016,452.99|
|Other operating activities|8,920,898.89|2,888,454.36|14,837,571.43|12,844,024.86|
|Total|712,958,603.26|259,661,927.23|691,832,626,47|252,860,477.85|

 37. Business taxes and levies
Unit: RMB
|||||
|-|-|-|-|
||Amount incurred in the|Amount incurred in the||
|Item|current period|prior period|Basis of calculation|
|Property tax|14,873,250.87|14,312,383.19|See note (IV)|
|Urban land use tax|5,239,062.56|5,875,448.70|See note (IV)|
|City construction and maintenance tax|2,327,636.94|2,265,496.77|See note (IV)|
|Business tax|1,998,254.47|5,158,779.04|See note (IV)|
|Education surcharges|1,906,193.93|1,825,677.42|See note (IV)|
|Others|222,482.82|230,887.81||
|Total|26,566,881.59|29,668,672.93||

38. Selling expenses
Unit: RMB
||||||
|-|-|-|-|-|
|||Amount incurred in the||Amount incurredin the prior period|
|Item||current period|||
|Agency brokerage|414,289.52||1,064,389.00||
|Others|9,582.91||44,567.18||
|Total|423,872.43||1,108,956.18||

 39. Administrative expenses
Unit: RMB
||||||
|-|-|-|-|-|
|||||Amount incurred|
|||Amount incurred in the||in the prior period|
|Item||current period||(restated)|
|Payroll|51,730,187.95||52,163,392.82||
|Asset amortization|10,750,070.56||8,363,611.39||
|Taxes|6,812,525.70||4,980,642.13||
|Asset depreciation|4,504,401.09||4,522,609.76||
|Business entertainment|2,830,996.47||2,950,377.00||
|Travelling expense|2,597,972.29||2,163,071.48||
|Vehicle expense|2,087,291.53||1,970,012.51||
|Board of directors fee|798,983.44||831,845.88||
|Others|13,118,846.12||11,153,668.49||
|Total|95,231,275.15||89,099,231.46||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 40. Financial expenses
Unit: RMB
|||||
|-|-|-|-|
||||Amount incurred in|
||Amount incurred inthe current period||the prior period|
|Item|||(restated)|
|Interest expenses|166,824,004.01|153,326,955.40||
|Less: Capitalized interest expenses|20,955,077.75|7,660,665.17||
|Less: Interest income|2,727,333.08|4,682,776.94||
|Exchange differences|210,592.57|2,449,467.28||
|Less: Capitalizedexchange differences|-|-||
|Others|2,926,541.16|2,934,103.62||
|Total|146,278,726.91|146,367,084.19||

 41. Impairment losses on assets
Unit: RMB
|||||
|-|-|-|-|
||Amount incurred inthe current period||Amount incurred in|
|Item|||the prior period|
|Bad debt losses|(20,260.63)|68,650.31||

 42. Investment income
(1)Details of investment income
Unit: RMB
|||||
|-|-|-|-|
||Amount recognized inthe current period||Amount recognized|
|Item|||in the prior period|
|Income from long-term equity investments under equity method|61,708,345.78|62,622,013.46||
|Income from bank financing products|32,184,075.89|32,845,899.16||
|Total|93,892,421.67|95,467,912.62||

 There are no significant restrictions on remittance of investment income stated above.
43. Non-operating income
(1)Details of non-operating income are as follows:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Amount||Amount||Amount included in|
|||recognized in the||recognized in the||non-recurring profit or|
|Item||current period||prior period||loss for the period|
|Total gains on disposal of non-current assets|244,284.67||355,637.36||244,284.67||
|Including: Gains on disposal of fixed assets|244,284.67||355,637.36||244,284.67||
|Government grants|9,686,859.21||4,694,608.73||9,686,859.21||
|Penalty gains|1,729,363.62||187,706.80||1,729,363.62||
|Others|207,618.02||331,312.16||207,618.02||
|Total|11,868,125.52||5,569,265.05||11,868,125.52||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 43. Non-operating income- continued
(2)Details of government grants:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Amount recognized||Amount recognized|||
|Item||in the current period||in the prior period||Related to assets/income|
|Bank loan subsidies (note 1)|3,226,300.00||3,280,034.92||Related to income||
|Financial support fund(note 2)|4,173,290.49||1,298,704.06||Related to income||
|Encouragement fund for service|1,800,000.00||-||Related to income||
|industry (note 3)Others|487,268.72||115,869.75||Related to income||
|Total|9,686,859.21||4,694,608.73||||

Note 1: Amount recognized in the current period mainly are bank loan subsidies for key logistics enterprise granted to the Company, in accordance with Interim Management Provisions on Accredited Shenzhen Key Logistics Enterprises (Shen Jiao (2006) No. 697) and Interim Management Provisions on Special Funds for Shenzhen Modern Logistics Development (Shen Cai Qi (2009) No. 96).
Note 2: Mainly is financial support fund granted to the Company in accordance with
Implementation Measures on Financial Supports During Shenzhen Business Tax to VAT Tax Reform Pilot Period (Shen Cai Fad (2012) No. 46).
Note 3: Pursuant to Notice on Municipal Service Industry Development Subsidy Plan (Tong Fa Gai FuWu[2014] No. 43), Nantong Baowan International Logistic Co., Ltd. ("Nantong Baowan"), subsidiary of the Company, obtained development subsidy granted to service industry from local government.
44. Non-operating expenses
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Amount incurred||Amount incurred||Amount included in|
|||in the current||in the prior||non-recurring profit or|
|Item||period||period||loss for the period|
|Total losses on disposal of non-current assets|54,664.06||132,490.93||54,664.06||
|Including: Losses on disposal of fixed assets|54,664.06||132,490.93||54,664.06||
|Penalty losses|984.08||5,130.95||984.08||
|Others|(66,876.74)||248,699.58||(66,876.74)||
|Total|(11,228.60)||386,321.46||(11,228.60)||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 45. Income tax expense
Unit: RMB
||||
|-|-|-|
||Amount incurred in the|Amount incurred in the|
|Item|current period|prior period(restated)|
|Current tax expense|52,176,005.66|52,832,124.20|
|Deferred tax expense|(444,966.20)|490,655.36|
|Total|51,731,039.46|53,322,779.56|

 Reconciliation of income tax expenses to the accounting profit is as follows:
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
||period|period (restated)|
|Accounting profit|290,587,956.37|273,310,408.76|
|Income tax expenses calculated at 25% (prior year: 25%)|72,646,989.09|68,327,602.19|
|Effect of expenses that are not deductible for tax purposes|921,511.60|665,633.09|
|Effect of tax-free income|(15,877,086.45)|(15,655,503.36)|
|Effect of unrecognized deductible losses and deductible temporary|3,378,736.48|876,578.70|
|differences|||
|Effect of using previously unrecognized deductible losses and|-|(1,495,208.04)|
|deductible temporary differences|||
|Effect of adjusting income tax in the previous periods|(10,403,019.86)|-|
|Others|1,063,908.60|603,676.98|
|Income tax expense|51,731,039.46|53,322,779.56|

 46. Other comprehensive income
See Note(V) 32 for detail.47. Calculation process of basic earnings per share and diluted earnings per share
For the purpose of calculating basic earnings per share, net profit for the current period attributable to ordinary shareholders is as follows:
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
||period|period|
|Net profit for the current period attributable to ordinary shareholders|218,544,184.50|204,249,571.44|
|Including: Net profit from continuing operations|218,544,184.50|204,249,571.44|
|Net profit from discontinued operations|-|-|

 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
||||
|-|-|-|
||Number for the current|Number for the prior|
||period|period|
|Number of ordinary shares outstanding at the beginning of year|230,600,000.00|230,600,000.00|
|Add: Weighted average number of ordinary shares issued during the period|-|-|
|Less: Weighted average number of ordinary shares repurchased during the|-|-|
|period|||
|Number of ordinary shares outstanding at the end of the year|230,600,000.00|230,600,000.00|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 47. Calculation process of basic earnings per share and diluted earnings per share- continued Earnings per share
Unit: RMB
||||
|-|-|-|
||Amount for the|Amount for the prior|
||current period|period(restated)|
|Calculated based on net profit attributable to shareholders of the|||
|Company:|||
|Basic earnings per share|0.95|0.89|
|Diluted earnings per share|Not applicable|Not applicable|
|Calculated based on net profit from continuing operations|||
|attributable to shareholders of the Company:|||
|Basic earnings per share|0.95|0.89|
|Diluted earnings per share|Not applicable|Not applicable|

 48. Notes to items in the cash flow statement
(1)Other cash receipts relating to operating activities
Unit: RMB
||||
|-|-|-|
||Amount for the|Amount for the prior|
|Item|current period|period(restated)|
|Receipts of storage service deposits|23,313,444.55|32,469,136.44|
|Government grants|11,186,859.21|4,694,608.73|
|Receipts of supplies purchasing and decoration fees|8,606,126.89|14,834,601.43|
|Interest income|2,683,778.20|7,542,421.26|
|Others|2,861,499.92|542,163.56|
|Total|48,651,708.77|60,082,931.42|

 (2) Other cash payments relating to operating activities
Unit: RMB
||||
|-|-|-|
||Amount for the|Amount for the prior|
|Item|current period|period(restated)|
|Payments for administrative expense and selling expense|21,434,089.85|13,205,808.64|
|Payments for storage service deposits|5,509,196.58|26,230,341.34|
|Payment for accrued expenses|4,011,777.54|2,478,612.86|
|Payment for supplies procurement and decoration fees|2,888,454.36|12,844,024.86|
|Payment for bank commissions|1,444,541.16|1,732,790.34|
|Others|1,829,840.59|4,314,711.71|
|Total|37,117,900.08|60,806,289.75|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 49. Notes to items in the cash flow statement- continued
(3) Other cash receipts relating to investing activities
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
|Item|period|period(restated)|
|Receipts of matured financing products|3,240,210,000.00|3,833,000,000.00|
|Investment income from bank financing products|30,305,834.60|28,048,536.15|
|Refund of land deposit|-|10,000,000.00|
|Receipts of construction retentions|-|2,666,503.86|
|Others|-|833,876.88|
|Total|3,270,515,834.60|3,874,548,916.89|

 (4) Other cash payments relating to investing activities
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
|Item|period|period(restated)|
|Purchase of financing products|2,956,991,901.00|4,136,654,100.00|
|Deposits for land rights|15,613,834.00|-|
|Others|1,411,987.00|-|
|Total|2,974,017,722.00|4,136,654,100.00|

 (5) Other cash receipts relating to financing activities
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
|Item|period|period|
|Receipts of loans from Nanshan Group|350,406,161.82|20,756,692.73|
|Receipts of loans from Nanshan Development (Hong Kong)|216,320,000.00|218,930,360.00|
|Limited ("Nanshan Hong Kong"),|||
|Total|566,726,161.82|239,687,052.73|

 (6) Other cash payments relating to financing activities
Unit: RMB
||||
|-|-|-|
||Amount for the current|Amount for the prior|
|Item|period|period|
|Payments for loan principal and interests to Nanshan Hong Kong|239,943,237.44|-|
|Payments for loan interests to Nanshan Group|62,906,843.01|58,793,950.16|
|Payments for loan principal to Nanshan Group|11,000,000.00|-|
|Payments for commission of medium term note|1,201,200.00|1,200,000.00|
|Payments for commission of corporate bond|2,280,000.00|-|
|Others|1,613.66|1,647.30|
|Total|317,332,894.11|59,995,597.46|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued 50. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
|||||
|-|-|-|-|
||||Prior period(restated)|
|Supplementary information||Current period||
|1. Reconciliation of net profit to cash flows from operating activities:||||
|Net profit|238,856,916.91||219,987,630.19|
|Add: Provision for impairment losses of assets|(20,260.63)||68,650.31|
|Depreciation of fixed assets|41,011,598.44||40,231,382.98|
|Amortization of intangible assets|38,679,662.17||36,009,198.34|
|Depreciation of investment properties|36,989,620.27||35,460,059.65|
|Losses (gains) on disposal of fixed assets, intangible assets|(189,620.61)||(223,146.43)|
|and other long-term assets||||
|Financial expenses|146,291,496.74||144,519,479.60|
|Losses (gains) arising from investments|(93,892,421.67)||(95,467,912.62)|
|Decrease (increase) in deferred tax assets|(444,966.20)||490,655.36|
|Decrease (increase) in inventories|(57,689.87)||73,365.26|
|Decrease (increase) in receivables from operating activities|(13,280,134.93)||10,224,263.32|
|Increase (decrease) in payables from operating activities|20,426,559.43||42,714,332.49|
|Net cash flows from operating activities|414,370,760.05||434,087,958.45|
|2. Net changes in cash and cash equivalents:||||
|Closing balance of cash|375,328,861.18||299,905,369.63|
|Less: Opening balance of cash|299,905,369.63||893,349,140.32|
|Add: Closing balance of cash equivalents|-||-|
|Less: Opening balance of cash equivalents|-||-|
|Net increase (decrease) in cash and cash equivalents|75,423,491.55||(593,443,770.69)|

 (2) Composition of cash and cash equivalents
Unit: RMB
|||||
|-|-|-|-|
||||Openingbalance(restated)|
|Item||Closing balance||
|I. Cash|375,328,861.18||299,905,369.63|
|Including: Cash on hand|13,074.85||17,305.49|
|Bank deposits|375,315,786.33||299,888,064.14|
|Other monetary funds|-||-|
|II. Cash equivalents|-||-|
|Including: Investments in debt securities due within three months|-||-|
|III. Closing balance of cash and cash equivalents|375,328,861.18||299,905,369.63|

51、Foreign currency monetary items
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|||Closing balance in||Exchange rate||Closing balance|
|Item|||||||
|||foreign currency||||translate in RMB|
|Cash and bank balance|||||||
|Including: United State Dollar|93,508.30||6.12||572,270.79||
|Euro|380.00||7.46||2,834.80||
|Hong Kong Dollar|20,821,093.21||0.79||16,448,663.63||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(VI) Changes of Consolidated Financial Statement Scope
1. Business combination involving enterprises under common control
(1) Business combination involving enterprises under common control
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Basis of|||||||
|||business|||Income of the||||
||Equity|combination|||combining||Income of the||
||percentage|involving|||entity arising|Net profit of the|combining|Net profit of the|
||acquired|enterprises|||from the|combining entity|entity during|combining entity|
|The|through|under||Basis of|opening to the|arising from the|the|during the|
|combining|business|common||combination|combination|opening to the|comparative|comparative|
|entity|combination|control|Consolidation date|date|date|combination date|period|period|
|China|||||||||
||100%|Note 1|6 October 2014|Note 2|-|(10,778,701.85)|-|(3,505,504.08)|
|Huitong|||||||||
|Wuxi Baowan|100%|Note 1|6 October 2014|Note 2|-|(2,239,694.77)|-|(304,063.57)|
|Zhenjiang|||||||||
||100%|Note 1|6 October 2014|Note 2|-|115,447.09|-|(474,552.84)|
|Warehouse|||||||||

Note1：Before and after the combination, the Company and the combining entity are under the ultimate control of Nanshan Group, parent company of the Company, and the control is not temporary.
Note2：Directors of the combining entity havebeen changed and new directors were dispatched by the Company to the combining entity on 6 October 2014 when the Company has acquired the actual control over the combining entity.
(2) Consolidation Cost
RMB
|||||
|-|-|-|-|
|Consolidation Cost|China Huitong|Wuxi Baowan|Zhenjiang Warehouse|
|--Cash(note)|0.79|-|-|

Note：Consolidation Cost is HKD 1.00, which is translated into RMB 0.79 pursuant to the Bank of China foreign exchange quotation on the transaction date.
(3) Book value of assets and liability for the combining entity on combination date
RMB
||||||||
|-|-|-|-|-|-|-|
||China Huitong||Wuxi Baowan||Zhenjiang Warehouse||
||Balance on|Prior closing|Balance on|Prior closing|Balance on|Prior closing|
||Combination date|balance|Combination date|balance|Combination date|balance|
|Assets:|||||||
|Cash and bank|22,654,305.14|22,297,354.33|10,372,124.78|197,879.90|42,583,325.16|44,082,454.54|
|balances|||||||
|Receivables|-|-|1,638.00|-|41,606,869.12|28,197,032.92|
|Other current assets|-|124,158.50|48,000,000.00|122,340,582.00|-|-|
|Long term equity|202,193,869.19|195,841,789.19|-|-|-|-|
|investment|||||||
|Construction in|-|-|40,000.00|40,000.00|110,641.68|-|
|progress|||||||
|Fixed assets|-|-|-|-|1,606.72|-|
|Intangible asset|-|-|129,788,428.90|-|-|-|
|Deferred tax asset|-|-|847,919.45|101,354.53|98,258.17|158,184.28|
|Liability:|||||||
|Payables|238,290,368.36|221,229,576.05|62,277,909.47|20,000.00|11,881,897.41|34,315.39|
|Net assets|(13,442,194.03)|(2,966,274.03)|126,772,201.66|122,659,816.43|72,518,803.44|72,403,356.35|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(VII) Equity in other entities
1. Equity in subsidiaries
(1) Group Composition
||||||||
|-|-|-|-|-|-|-|
|||||Proportion of|||
|||||holding equity (%)|||
|Name of subsidiary|Business premise|Registered place|Business nature|Direct|Indirect|Acquired method|
|Baowan Holdings|Guangdong Shenzhen|Guangdong Shenzhen|Investment|77.36|-|Set-up|
|Shanghai Baowan International Logistic Co., Ltd.|Shanghai|Shanghai|Logistic service|-|100.00|Set-up|
|Guangzhou Baowan Logistic Co., Ltd. ("Guangzhou|||Logistic service|||Set-up|
||Guangdong Guangzhou|Guangdong Guangzhou||-|100.00||
|Baowan")|||||||
|Kunshan Baowan International Logistic Co., Ltd.|Jiangsu Kunshan|Jiangsu Kunshan|Logistic service|-|100.00|Set-up|
|Tianjin Baowan International Logistic Co., Ltd.|Tianjin|Tianjin|Logistic service|-|100.00|Set-up|
|Langfang Baowan International Logistic Co., Ltd.|Hebei Langfang|Hebei Langfang|Logistic service|-|100.00|Set-up|
|Chengdu Xindu Baowan International Logistic Co.,|||Logistic service|||Set-up|
||Sichuang Chengdu|Sichuang Chengdu||-|100.00||
|Ltd.|||||||
|Chengdu Longquan International Logistic Co., Ltd.|Sichuang Chengdu|Sichuang Chengdu|Logistic service|-|100.00|Set-up|
|Nanjing Baowan Logistic Co., Ltd. ("Nanjing|||Logistic service|||Set-up|
||Jiangsu Nanjing|Jiangsu Nanjing||-|100.00||
|Baowan")|||||||
|Bingang Baowan|Tianjin|Tianjin|Logistic service|-|100.00|Set-up|
|Nantong Baowan Logistic Co., Ltd. ("Nantong|||Logistic service|||Set-up|
||Jiangsu Nantong|Jiangsu Nantong||-|100.00||
|Baowan")|||||||
|Baowan Logistic (Wuhan) Co.,Ltd.|||Logistic service|||Set-up|
||Hubei Wuhan|Hubei Wuhan||-|100.00||
|("Wuhan Baowan")|||||||
|Qingwu Baowan|Tianjin|Tianjin|Logistic service|-|100.00|Set-up|
|Shenyang Baowan|Liaoning Shenyang|Liaoning Shenyang|Logistic service|-|100.00|Set-up|
|Yangluo Baowan|Hubei Wuhan|Hubei Wuhan|Logistic service|-|100.00|Set-up|
|Feidong Baowan|Anhui Hefei|Anhui Hefei|Logistic service|-|100.00|Set-up|
|Xi'an Baowan|Shanxi Xi'an|Shanxi Xi'an|Logistic service|-|100.00|Set-up|
|Xianyang Baowan|Shanxi Xianyang|Shanxi Xianyang|Logistic service|-|100.00|Set-up|
||Hong Kong Special|Hong Kong Special||||Set-up|
|Baowan Hong Kong|||Investment|-|100.00||
||Administrative Region|Administrative Region|||||
|Jiaozhou Baowan|Shandong Qingdao|Shandong Qingdao|Logistic service|-|100.00|Set-up|
|Changzhou Baowan|Jiangsu Changzhou|Jiangsu Changzhou|Logistic service|-|100.00|Set-up|
|Jiaxing Baowan|Zhejiang Jiaxing|Zhejiang Jiaxing|Logistic service|-|100.00|Set-up|
|Jiangyin Baowan|Jiangsu Jiangyin|Jiangsu Jiangyin|Logistic service|-|100.00|Set-up|
||||Logistic service|||Business|
|||||||combination|
|Shenzhen Baowan International Logistic Co., Ltd.|||||||
||Guangdong Shenzhen|Guangdong Shenzhen||100.00|-|involving|
|("Shenzhen Baowan")|||||||
|||||||enterprises under|
|||||||common control|
||||Logistic service|||Business|
|||||||combination|
|Mingjiang (Shanghai) International Logistic Co.,|||||||
||Shanghai|Shanghai||-|100.00|involving|
|Ltd.|||||||
|||||||enterprises under|
|||||||common control|
|||||||Business|
|||||||combination|
||Hong Kong Special|Hong Kong Special|||||
|China Huitong|||Investment|-|100.00|involving|
||Administrative Region|Administrative Region|||||
|||||||enterprises under|
|||||||common control|
||||Logistic service|||Business|
|||||||combination|
|Wuxi Baowan|Jiangsu Wuxi|Jiangsu Wuxi||-|100.00|involving|
|||||||enterprises under|
|||||||common control|
||||Logistic service|||Business|
|||||||combination|
|Zhenjiang Warehouse|Jiangsu Zhenjiang|Jiangsu Zhenjiang||-|100.00|involving|
|||||||enterprises under|
|||||||common control|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(VII) Equity in other entities- continued
2. Equity in joint ventures or associates
(1) Significant associates
||||||||
|-|-|-|-|-|-|-|
|||||Proportion of|||
|||||shareholding (%)||Accounting|
|Name|Business premise|Registered place|Business nature|Direct|Indirect|method|
|CSE|Guangdong Shenzhen|Guangdong Shenzhen|Oceanic oil engineering|32.00|-|Equity method|
|CDFC|Guangdong Shenzhen|Guangdong Shenzhen|Capital management|20.00|-|Equity method|
||||Oil chemical equipment||||
|CPEC|Guangdong Shenzhen|Guangdong Shenzhen||20.00|-|Equity method|
||||manufacturing||||

(2) Financial information of Significant associates
||||||||
|-|-|-|-|-|-|-|
||Closing balance/Amount incurred in the current period|||Opening balance/Amount incurred in the prior period|||
||CSE|CDFC|CPEC|CSE|CDFC|CPEC|
|Current asset|419,889,841.93|1,767,704,129.70|37,742,800.42|512,197,686.10|1,620,556,560.25|30,828,800.79|
|Including: Cash and cash|||||||
||368,312,776.83|1,767,703,729.70|7,111,114.64|333,329,909.90|1,620,556,560.25|10,390,496.01|
|equivalents|||||||
|Non-current asset|1,016,889,212.27|803,196,275.65|10,439,406.27|928,976,062.93|288,002,881.36|3,080,308.31|
|Total asset|1,436,779,054.20|2,570,900,405.35|48,182,206.69|1,441,173,749.03|1,908,559,441.61|33,909,109.10|
|Current liability|114,121,562.75|2,044,890,233.81|21,193,588.87|149,385,573.15|1,403,033,745.86|5,586,839.47|
|Non-current liability|-|-|-|-|-|-|
|Total liability|114,121,562.75|2,044,890,233.81|21,193,588.87|149,385,573.15|1,403,033,745.86|5,586,839.47|
|Net assets share calculated|||||||
|according to proportion of|427,311,548.07|105,202,034.31|5,448,458.79|369,433,367.09|101,105,139.15|5,715,189.15|
|shareholding|||||||
|Net book value of the|||||||
|equity investment in|427,311,548.07|105,202,034.31|5,448,458.79|369,433,367.09|101,105,139.15|5,715,189.15|
|associates|||||||
|Income|782,512,260.81|61,535,184.39|68,315,733.31|847,771,058.40|19,442,819.95|49,173,303.70|
|Net profit|180,869,315.57|20,484,475.79|-1,333,651.81|189,826,570.57|5,525,695.75|3,861,858.67|
|Other comprehensive|||||||
||-|-|-|-|-|-|
|income|||||||
|Total comprehensive|||||||
||180,869,315.57|20,484,475.79|-1,333,651.81|189,826,570.57|5,525,695.75|3,861,858.67|
|income|||||||
|Dividend received from|||||||
|associates in the current|48,000,000.00|-|-|22,400,000.00|-|-|
|period|||||||

(VIII) Risks associated with financial instruments
The Group's major financial instruments include bank deposits, notes receivable, account receivables, interest receivable, dividends receivable, other receivables, account payables, interest payable, other payables, non-current liabilities due within one year, other current liabilities, long-term borrowings, notes payable, long-term payables, and other non-current liabilities. Details of these financial instruments are disclosed in their correspondent notes. 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.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(VIII) Risks associated with financial instruments - continued
1. Risk management objectives and policies
The Group's risk management objectives are to achieve a 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 stakeholders. Based on these risk management objectives, the Group's basic risk management strategy is to identify and analyses the Group's exposure to various risks, establish an appropriate maximum tolerance to risk, and implement risk
management, and monitors regularly and effectively these exposures to ensure the risks are monitored at a certain level.
1.1 Market risk
1.1.1Currency 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 RMB.As at 31 December 2014, the balance of the Group's assets and liabilities are both denominated in RMB except that the assets and liabilities set out below are denominated in foreign currencies.
Unit: RMB
||||||
|-|-|-|-|-|
|Items||Ending balance||Opening balance(restated)|
|Cash and cash equivalents|17,023,769.22||45,157,101.90||

 The Group closely monitors the effects of changes in the foreign exchange rates on the Group's currency risk exposures.
Foreign currency sensitive analysis
Given that the Company holds a relatively small amount of assets and liabilities in foreign currency, the management considers that, where all other variables are held constant, the reasonably possible changes in exchange rates will not have a material pre-tax effect on the profit or loss for the period and shareholders' equity.
1.1.2Interest rate risk - risk of changes in cash flows
The Group's cash flow interest rate risk of financial instruments relates primarily to variable-rate bank borrowings, bonds payable, long-term payables, other non-current liabilities (see Note (V) 25, Note (V) 26, Note (V) 27 and Note (V) 29 for details). It is the Group's policy to keep its borrowings at floating rate of interests so as to eliminate the fair value interest rate risk. Analysis on interest rate risk
The sensitivity analysis on interest rate risk is based on the following assumptions:
 Changes in the market interest rate may influence the interest income or expense of the
variable rate financial instruments;
 For fixed rate financial instruments measured at fair value, changes in the market interest rate
only influence their interest income or expense;
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(VIII) Risks associated with financial instruments - continued
1. Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.2Interest rate risk - risk of changes in cash flows - continued
 For derivative financial instruments designated as hedging instruments, changes in the market interest rate influence their fair values, and all the hedges of interest rate risk are expected to be highly effective;
 Changes in the fair value of derivative financial instruments and other financial assets and liabilities are calculated at the market interest rate as at the balance sheet date, using the method of discounted cash flow analysis.
On the basis of the above assumptions, where all other variables are held constant, the reasonably possible changes in the interest rate may have the following pre-tax effect on the profit or loss for the period and shareholders' equity:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Current year||||Prior year (restated)|||
|||Change in||||Effect on||||Effect on|
|Item||interest rate||Effect on profit||shareholders' equity||Effect on profit||shareholders' equity|
|External borrowings|1% increase||(13,422,345.39)||(13,422,345.39)||(12,475,553.39)||(12,475,553.39)||
|External borrowings|1% decrease||13,422,345.39||13,422,345.39||12,475,553.39||12,475,553.39||
|External deposits|1% increase||1,805,000.0)||1,805,000.00||2,582,410.00||2,582,410.00||
|External deposits|1% decrease||(1,805,000.00)||(1,805,000.00)||(2,582,410.00)||(2,582,410.00)||

 1.2 Credit risk
As at 31 December 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:
(1) 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
(2) The amount of financial guarantees contract disclosed in Note (XIV)9(3) "Guarantees with related parties".
In order to minimize the credit risk, the Group has delegated the finance department to be responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the
recoverable amount of each individual trade debt at each balance sheet date to ensure that
adequate impairment losses are made for irrecoverable amounts. In this regard, the management
of the Group considers that the Group's credit risk is significantly reduced.
The credit risk on liquid funds is limited because they are deposited with banks with high credit
ratings.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(VIII) Risks associated with financial instruments - continued
1. Risk management objectives and policies - continued
1.3 Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group's operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilization of bank borrowings and ensures compliance with loan covenants.
Loans are main source of funding for the Group. As at 31 December 2014, the Group still possessed RMB 3,006,874,955.92unused bank credit line (As at 31 December 2013: RMB 1,650,476,003.27).
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||Within 1 year||1 year to 5 years||Over 5 years|
|Cash and bank balances|375,328,861.18||-||-||
|Notes receivable|10,000,000.00||-||-||
|Accounts receivable|53,234,644.64||-||-||
|Interest receivable|3,573,311.30||-||-||
|Other receivables|61,287,160.23||-||-||
|Other current assets|390,000,000.00||-||-||
|Accounts payable|(10,358,009.24)||-||-||
|Interest payable|(36,404,811.44)||-||-||
|Other payables|(439,034,917.38)||-||-||
|Other current liabilities|(308,433,333.33)||||||
|Long-term borrowings|(25,224,029.97)||(142,753,964.39)||(527,549,398.82)||
|Bonds payable|(56,946,000.00)||(1,129,493,683.33)||-||
|Long-term payables(note)|-||(251,417,853.31)||-||
|Other non-current liabilities|(59,465,000.00)||(975,030,388.89)||-||

 Note: Long-termpayables do not have fixed maturity date, the Group assumes to repay long-term payables at the end of the
5th
year.
(IX) DISCLOSURE ON FAIR VALUE
1. Financial assets and Financial liabilities that are not measured at fair value
The management considers that the carrying amounts of financial assets and financial liabilities
measured at amortized cost the financial statements are approximate to their fair values.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||Voting|
|||||||||Shareholding||power|
|||Registered||||Registered||percentage||percentage|
|Entity name||location||Business nature||capital (RMB)||(%)||(%)|
||GuangdongShenzhen||Port and shipping, offshore oil service, realestate development and new constructionmaterial||900,000,000.00||51.79||51.79||
|Nanshan|||||||||||
|Group|||||||||||

The ultimate control party of the Company is Nanshan Group.
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in note (VII)1.
3. Associates and joint ventures of the Company
Details of the associates and joint ventures of the Company are set out in note (VII) 2.
4. Other related parties of the Company
||||
|-|-|-|
|||Relationship between other|
|Name of other related party||related parties and the Company|
|Shenzhen Nanshan Real Estate Development Co,. Ltd. ("Nanshan Real Estate Company")|Controlled by the same party||
|Shenzhen Chixiao Project Engineering Co., Ltd. ("Chixiao Project Company")|Controlled by the same party||
|Shenzhen Chixiao Construction Technology Co., Ltd. ("Chixiao Construction Company")|Controlled by the same party||
|Yahgee Modular House Co., Ltd. ("Yahgee Company")|Controlled by the same party||
|Shenzhen Chiwan Oriental Logistics Co., Ltd. ("Oriental Logistics Company")|Controlled by the same party||
|Shenzhen Chiwan Real Estate Development Co., Ltd. ("Chiwan Real Estate Company")|Controlled by the same party||
|Hefei Baowan International Logistics Center Co,.Ltd.("Hefei Bawan")|Controlled by the same party||
|Nanshan Hong Kong|Controlled by the same party||
|Directors, general manager, vice-general managers, etc. of the Company|Key management personnel||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions
(1) Provision and receipt of services
Receipt of service
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and decision-making|||
||Details of related party|procedures of related partytransactions|||
|Related party|transaction||Amount for the current period|Amount for the prior period|
|Chixiao Project|Construction service|By reference to market price|16,886,030.34|21,648,923.28|
|Company|||||
|Nanshan Group|Power supply service|By reference to market price|3,665,489.17|3,128,022.00|
|Total|||20,551,519.51|24,776,945.28|

 Provision of service
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and decision-making|||
||Details of related party|procedures of related party|||
|Related party|transaction|transactions|Amount for the current period|Amount for the prior period|
||Loading and unloadingservice|By reference to market price|6,521,955.54|7,415,958.81|
|CSE|||||
|CSE|Stack (storage) service|By reference to market price|3,456,744.34|3,593,909.00|
|CPEC|Stack (storage) service|By reference to market price|822,671.55|882,175.00|
||Trusteeship managementservice|By reference to market price|300,000.00|-|
|Hefei Baowan|||||
||Loading and unloadingservice|By reference to market price|83,103.08|117,607.23|
|CPEC|||||
|Nashan Group|Maintenance service|By reference to market price|32,883.57|31,058.22|
|CDFC|Maintenance service|By reference to market price|18,147.00|-|
|Nashan Group|Stack (storage) service|By reference to market price|9,600.00|-|
|Total|||11,245,105.08|12,040,708.26|

 (2) Leases with related parties
Leases where a group entity is the lessor:
Unit: RMB
|||||
|-|-|-|-|
|||Lease income recognized|Lease income recognized|
|Name of lessee|Type of leased assets|in the current year|in the prior year|
|Nashan Group|Office building|6,062,897.67|6,651,072.60|
|CDFC|Office building|1,120,457.52|560,228.76|
|CSE|Office building|785,836.56|785,836.56|
|CPEC|Office building|464,490.72|437,832.00|
|Chiwan Real Estate|Office building|177,850.40|-|
|Oriental Logistics Company|Office building|131,040.00|90,805.20|
|Nanshan Real Estate Company|Office building|80,645.76|79,683.84|
|Total||8,823,218.63|8,605,458.96|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions- continued
(2) Leases with related parties
Leases where a group entity is the lessee:
Unit: RMB
|||||
|-|-|-|-|
|||Lease payment recognized|Lease payment recognized|
|Name of lessor|Type of leased assets|in the current year|in the prior year|
|Nanshan Group|Site (note 1)|29,151,086.50|28,708,824.65|
|Nanshan Group|Site (note 2)|2,069,649.60|1,987,417.60|
|Yahgee Company|Building|19,680.00|19,680.00|
|Total||31,240,416.10|30,715,922.25|

 Note 1: The leased assets include two pieces of lands which the Company has leased from Nanshan Group: one is to the east of Chiwan 1st Road, with the lease term from 1 September 2006 to 31 August 2026; the other is the Chiwan east coast venue (phase I), with the lease term from 1 January 2012 to 14 July 2034.
Note 2: The leased land is located to the southeast of the intersection of Chiwan 2nd Road and 6th Road, which Shenzhen Baowan has leased from Nanshan Group, the Company's parent company.
(3) Guarantees with related parties
A group entity as the guaranteed party:
Unit: RMB
|||||||
|-|-|-|-|-|-|
||||||Whether execution|
||||Inception date of|Expiration date|of guarantee has|
|Guarantor|Guaranteed party|Guaranteed amount|guarantee|of guarantee|been completed|
|Nanshan Group|The Company|570,000,000.00|17/12/2012|17/12/2019|No|
|Nanshan Group|The Company|400,000,000.00|09/03/2012|09/03/2017|No|
|Nanshan Group(note 1)|The Company|200,000,000.00|31/03/2012|30/03/2029|No|
|Nanshan Group(note 2)|The Company|120,000,000.00|29/11/2012|28/11/2029|No|
|Nanshan Group(note 3)|Guangzhou Baowan|59,996,000.00|22/04/2014|21/04/2029|No|
|Nanshan Group(note 4)|Wuhan Baowan|56,600,000.00|17/12/2014|16/12/2029|No|
|Nanshan Group(note 5)|Nanjing Baowan|58,864,000.00|29/05/2014|28/05/2029|No|
|Total||1,465,460,000.00||||

Note 1: Pursuant to the long-term borrowings contract, the Company can apply for loans within the scope of guaranteed amount and guaranteed term. As at 31 December 2014, the closing balance of the aforesaid guaranteed loan is RMB126,019,651.23
Note 2: Pursuant to the long-term borrowings contract, the Company can apply for loans within the scope of guaranteed amount and guaranteed term. As at 31 December 2014, the closing balance of the aforesaid guaranteed loan is RMB56,504,650.81.
Note 3: Pursuant to the long-term borrowings contract, Guangzhou Baowancan apply for loans
within the scope of guaranteed amount and guaranteed term. Nanshan Group and the
Company has provide guarantee for the borrowings by22.64% and77.36% of the amount
respectively. As at 31 December 2014, the closing balance of the aforesaid guaranteed
loan is RMB92,442,114.06.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions- continued
(3)Guarantees with related parties - continued
Note 4: Pursuant to the long-term borrowings contract, Wuhan Baowancan apply for loans within the scope of guaranteed amount and guaranteed term.Nanshan Group and the Company has provide guarantee for the borrowings by22.64% and77.36% of the amount respectively. As at 31 December 2014, the closing balance of the aforesaid guaranteed loan is RMB1,015,542.09.
Note 5: Pursuant to the long-term borrowings contract, Nanjing Baowancan apply for loans within the scope of guaranteed amount and guaranteed term.Nanshan Group and the Company has provide guarantee for the borrowings by22.64% and77.36% of the amount respectively. As at 31 December 2014, the closing balance of the aforesaid guaranteed loan is RMB69,509,176.09.
(4) Borrowings/loans with related parties
Unit: RMB
|||||||
|-|-|-|-|-|-|
||Amount for the|Inception||Amount at the end of||
|Related party|current period|date|Maturity date|the current period|Remarks|
|Borrow from:||||||
|Nanshan Group|300,000,000.00|03/07/2014|03/07/2015|300,000,000.00|Note 1|
|Nanshan Group|110,000,000.00|12/12/2014|12/12/2017|110,000,000.00|Note 2|
|Nanshan Group|100,000,000.00|18/12/2014|18/12/2017|100,000,000.00|Note 2|
|Nanshan Group|349,695,801.82|Note 3|Note 3|||
|Total|549,406,161.82|||||

Note 1: The loan is to satisfy the business turnover of the Group. The annual interest rate is5.5000%.
Note 2: The loan is used for the construction of logistics parks of the Company's subsidiaries. The annual interest rate is5.6000%.
Note 3: There is no fixed term for repayment for the above mentioned borrowings and loans. The interest rates are based on the market interest rates.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions- continued
(5) Interest incomes and expenses with related parties
Interest/investment income gained from deposits/purchase of bank financing products
Unit: RMB
||||||
|-|-|-|-|-|
||Type of related party|Pricing principle of related party|Amount for the current||
|Related party|transaction|transaction|period|Amount for the prior period|
||Interest income|Negotiated interest rate(referred to market rate)|146,894.86|-|
|CDFC (note)|||||

Note: Interest income from CDFC is generated from theCompany’s fixed deposits of RMB 85,000,000.00 and current deposits of RMB 4,077,788.66.
Interest expense for borrowings
Unit: RMB
||||||
|-|-|-|-|-|
||Type of related party|Pricing principle of related||Amount for the prior|
|Related party|transaction|party transaction|Amount for the current period|period|
||Interest expense|Negotiated interest rate(referred to market rate)|69,325,430.93|58,926,472.19|
|Nanshan Group|||||
||Interest expense|Negotiated interest rate(referred to market rate)|13,199,883.09|2,004,829.05|
|Nanshan Hong Kong|||||
||||82,525,314.02|60,931,301.24|
|Total|||||

 (6) Compensation for key management personnel
Unit: RMB
||||
|-|-|-|
||Amount incurred in the|Amount incurred in the|
|Item|current period|prior period|
|Compensation for key management personnel|6,066,538.08|5,735,022.93|

 6. Amounts due from / to related parties
(1) Amounts due from related parties
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||Closing balance|||Opening balance|||
|||||Bad debtprovision|||||
|Item|Related party||Carrying amount|||Carrying amount||Bad debt provision|
||CSE|557,417.99||5,574.18|3,854,041.82||38,540.42||
||CPEC|369,168.03||3,691.68|366,834.89||3,668.35||
|Accounts receivable|Nanshan Real Estate Company|-||-|6,390.32||63.90||
||Chiwan Real Estate|22,231.30||222.31|-||-||
||Total|948,817.32||9,488.17|4,227,267.03||42,272.67||
|Dividends receivable|CSE|-||-|48,000,000.00||-||
||Yahgee Company|20,000.00||200.00|20,000.00||200.00||
||CSE|11,571.48||115.71|22,971.48||229.71||
|Other receivable|CPEC|-||-|146,888.94||1,468.89||
||Total|31,571.48||315.71|189,860.42||1,898.60||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
6. Amounts due from / to related parties- continued
(2) Amounts due to related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Related party|||
|||Closing balance|Opening balance(restated)|
|Accounts payable|Nanshan Group|5,559,882.42|6,132,919.30|
||CSE|16,554.40|16,554.40|
||Chixiao Construction Company|9,740.00|9,740.00|
||Total|5,586,176.82|6,159,213.70|
|Interest payable|Nanshan Group|15,099,874.99|6,758,208.33|
|Other payables|Nanshan Hong Kong|210,559,795.85|219,258,474.69|
||Chixiao Construction Company|8,599,662.10|6,306,878.46|
||Chixiao Project Company|8,002,634.47|1,751,292.65|
||Nanshan Group|2,603,375.28|8,201,702.79|
||CSE|247,442.00|164,425.00|
||CPEC|204,224.04|202,913.64|
||Oriental Logistics Company|5,000.00|5,000.00|
||Total|230,222,133.74|235,890,687.23|
|Non-current liabilities due within one year|CSE|785,836.56|785,836.56|
|Long-term payables|Nanshan Group|251,417,853.31|212,011,691.49|
|Other non-current liabilities|Nanshan Group|700,000,000.00|700,000,000.00|
||CSE|5,450,872.14|6,236,708.70|
||Total|705,450,872.14|706,236,708.70|
|Other current liabilities|Nanshan Group|300,000,000.00|-|

 7. Amounts deposited in / borrowed from related parties
Cash and bank balances deposited in related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Related party|Closing balance|Opening balance|
|Cash and bank balances|CDFC|89,077,788.66|-|

 (XI) COMMITMENTS AND CONTINGENCY
1.Significant commitments
(1) Capital commitments
Unit: RMB
|||||
|-|-|-|-|
||Closing balance||Opening balance|
|||Closing balance|(restated)|
|Capital commitments that have been entered into but have not been||||
|recognized in the financial statements:||||
|- Commitment for acquisition and construction of long-term assets|30,367,793.33||383,877,817.43|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XI) COMMITMENTS AND CONTINGENCY - continued
(2)Operating lease commitments
At the balance sheet date, the Group had the following commitments in respect of non-cancellable operating leases:
Unit: RMB
||||||
|-|-|-|-|-|
|||Closing balance||Opening balance|
|Minimum lease payments under non-cancellable operating leases:|||||
|1st year subsequent to the balance sheet date|30,861,429.30||37,218,452.33||
|2nd year subsequent to the balance sheet date|35,957,640.55||38,543,346.95||
|3rd year subsequent to the balance sheet date|36,757,640.55||38,163,746.76||
|Subsequent periods|485,029,330.65||530,332,104.58||
|Total|588,606,041.04||644,257,650.62||

 2. Contingency
There is no significant contingency needed to be disclosed for the Group.
(XII) EVENTS AFTER THE BALANCE SHEET DATE
1. Profit appropriation after the balance sheet date
Unit: RMB
||||
|-|-|-|
|Item||Amount|
|Proposed distributions of dividends|29,747,400.00||
||The dividend distribution proposal issubject to approval in theshareholders' meeting of 2014.||
|Dividends declared to be distributed|||

 (XIII) OTHER SIGNIFICANT EVENTS
1. Borrowing costs
Unit: RMB
||||||
|-|-|-|-|-|
|||Amount of borrowing|||
|Item||costs during the year||Capitalization rate|
|Construction in progress|20,955,077.75||5.96%||
|Sub-total of borrowing costs capitalized during the year|20,955,077.75||||
|Borrowing costs recognized in profit or loss during the year|145,868,926.26||||
|Total|166,824,004.01||||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting
(1) Determining basis of reporting segment and accounting policy
Based on the Group's internal organization structure, management requirements and internal operating system, the operations of the Group are classified into four operating segments. The reporting segments are determined based on the specific circumstances of the Group.On the basis of operating segments, the Group identifies four reporting segments. The Group's management periodically evaluates the operating results of these reporting segments to make decisions about resources to be allocated to the segments and assess their performance. Major products and services delivered or provided by each of the reporting segments are: stack (storage), loading and unloading, port management, office leasing and others.
Segment information is disclosed in accordance with the accounting policies and measurement criteria adopted by each segment when reporting to management. The measurement criteria are consistent with the accounting and measurement criteria in the preparation of the financial statements.
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIII) OTHER SIGNIFICANT EVENTS- continued
2. Segment reporting- continued
(1) Segment information
Unit: RMB
||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Stack (storage)|||Loading and unloading|||Port management|||Office leasing and others|||Unallocated items|||Inter-segment eliminations|||Total||
|||Prior year|||Prior year|||Prior year|||Prior year|||Prior year|||Prior year|||Prior year|||
|||Current year||(restated)|Current year||(restated)|Current year||(restated)|Current year||(restated)|Current year||(restated)|Current year||(restated)|Current year||(restated)|
|O|perating income:||||||||||||||||||||||
|||459,420,777.75||440,603,925.00|118,875,200.46||102,070,501.85|65,928,619.94||80,866,836.85|68,734,005.11||68,291,362.77|-||-|-||-|712,958,603.26||691,832,626.47|
|E|xternal revenue||||||||||||||||||||||
|Inre|ter-segment|-||-|-||-|-||-|-||-|-||-|-||-|-||-|
||venue||||||||||||||||||||||
|||459,420,777.75||440,603,925.00|118,875,200.46||102,070,501.85|65,928,619.94||80,866,836.85|68,734,005.11||68,291,362.77|-||-|-||-|712,958,603.26||691,832,626.47|
|To|otal segment||||||||||||||||||||||
||perating income||||||||||||||||||||||
|Re|conciling items:||||||||||||||||||||||
|||||||||||||||||||||712,958,603.26||691,832,626.47|
|To|tal operating income in the financial statements||||||||||||||||||||||
|||165,537,486.60||157,981,199.56|45,155,722.90||40,518,647.70|15,751,307.76||15,098,162.53|33,217,409.97||39,262,468.06|-||-|-||-|259,661,927.23||252,860,477.85|
|O|perating costs||||||||||||||||||||||
|||293,883,291.15||282,622,725.44|73,719,477.56||61,551,854.15|50,177,312.18||65,768,674.32|35,516,595.14||29,028,894.71|-||-|-||-|453,296,676.03||438,972,148.62|
|Sp|egment operating||||||||||||||||||||||
||rofit (loss)||||||||||||||||||||||
|R|econciling items:||||||||||||||||||||||
|||17,119,335.33||18,894,936.78|4,429,630.78||4,377,209.49|2,456,689.39||3,467,907.76|2,561,226.09||2,928,618.90|-||-|-||-|26,566,881.59||29,668,672.93|
|Ble|usiness taxes and||||||||||||||||||||||
||vies||||||||||||||||||||||
|||423,872.43||1,108,956.18|-||-|-||-|-||-|-||-|-||-|423,872.43||1,108,956.18|
|Se|lling expenses||||||||||||||||||||||
|Gad|eneral and|49,842,021.39||42,954,662.09|12,896,631.09||9,950,896.19|7,152,518.66||7,883,741.96|7,456,871.61||6,657,753.64|17,883,232.40||21,652,177.58|-||-|95,231,275.15||89,099,231.46|
||ministrative||||||||||||||||||||||
|expenses||-||-|-||-|-||-|-||-|146,278,726.91||146,367,084.19|||-|146,278,726.91||146,367,084.19|
|Fi|nancial expenses||||||||||||||||||||||
|Imas|pairment loss of|-||-|-||-|-||-|-||-|(20,260.63)||68,650.31|-||-|(20,260.63)||68,650.31|
||sets||||||||||||||||||||||
|||-||-|-||-|-||-|-||-|93,892,421.67||95,467,912.62|-||-|93,892,421.67||95,467,912.62|
|In|vestment income||||||||||||||||||||||
|||226,498,062.00||219,664,170.39|56,393,215.69||47,223,748.47|40,568,104.13||54,417,024.60|25,498,497.44||19,442,522.17|(70,249,277.01))||(72,619,999.46)|-||-|278,708,602.25||268,127,466.17|
|O|perating profit||||||||||||||||||||||
|||||||||||||||||||||11,868,125.52||5,569,265.05|
|N|on-operating income||||||||||||||||||||||
|||||||||||||||||||||(11,228.60)||386,321.46|
|N|on-operating expenses||||||||||||||||||||||
|||226,498,062.00||219,664,170.39|56,393,215.69||47,223,748.47|40,568,104.13||54,417,024.60|25,498,497.44||19,442,522.17|(70,249,277.01))||(72,619,999.46)|-||-|290,587,956.37||273,310,409.76|
|T|otal profit||||||||||||||||||||||

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIII) OTHER SIGNIFICANT EVENTS-continued
2. Segment reporting- continued
(2) Reporting segment information - continued
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Stack (storage)Prior year||Loading and unloadingPrior year||Port managementPrior year||Office leasing and othersPrior year||Unallocated itemsPrior year||Inter-segment eliminationsPrior year||TotalPrior year||
|Total segment assets||Current year5,722,135,345.02|(restated)4,460,740,446.75|Current year1,480,603,444.91|(restated)1,033,377,122.14|Current year821,148,073.13|(restated)818,708,026.57|Current year856,089,448.05|(restated)691,392,034.40|Current year3,244,003,582.20|(restated)492,926,481.15|Current year(6,734,350,021.50)|(restated)(2,778,540,485.05)|Current year5,389,629,871.81|(restated)4,718,603,625.96|
|R|econciling items:|||||||||||||||
|Tfi|otal assets in the|5,722,135,345.02|4,460,740,446.75|1,480,603,444.91|1,033,377,122.14|821,148,073.13|818,708,026.57|856,089,448.05|691,392,034.40|3,244,003,582.20|492,926,481.15|(6,734,350,021.50)|(2,778,540,485.05)|5,389,629,871.81|4,718,603,625.96|
||nancial statements|||||||||||||||
|Tlia|otal segment|3,904,288,586.05|2,912,287,728.96|1,010,235,302.36|674,661,874.67|560,280,184.95|534,510,664.28|584,121,146.93|451,389,755.07|1,179,949,729.09|2,391,766,451.27|(3,837,667,340.86)|(3,993,897,395.60)|3,401,207,608.52|2,970,719,078.67|
||bilities|||||||||||||||
|R|econciling items:|||||||||||||||
|Tfi|otal liabilities in the|3,904,288,586.05|2,912,287,728.96|1,010,235,302.36|674,661,874.67|560,280,184.95|534,510,664.28|584,121,146.93|451,389,755.07|1,179,949,729.09|2,391,766,451.27|(3,837,667,340.86)|(3,993,897,395.60)|3,401,207,608.52|2,970,719,078.67|
||nancial statements|||||||||||||||
|Su|pplementary information:|||||||||||||||
|Depreciation||50,349,824.25|48,205,223.98|13,005,538.42|11,167,243.69|7,212,919.07|8,847,410.93|7,432,936.97|7,471,564.03|-|-|-|-|78,001,218.71|75,691,442.63|
|A|mortization|24,967,740.56|22,932,994.94|6,449,256.07|5,312,667.84|3,576,780.94|4,209,038.22|3,685,884.60|3,554,497.34|-|-|-|-|38,679,662.17|36,009,198.34|
|In|terest income||-||-||-||-|2,727,333.08|4,682,776.94||-|2,727,333.08|4,682,776.94|
|In|terest expense||-||-||-||-|145,868,926.26|145,666,290.23||-|145,868,926.26|145,666,290.23|
|Imrecu|pairment losses||-||-||-||-|(20,260.63)|68,650.31||-|(20,260.63)|68,650.31|
||cognized in the|||||||||||||||
||rrent period|||||||||||||||
|Infrineq|vestment income||-||-||-||-|61,708,345.78|62,622,013.46||-|61,708,345.78|62,622,013.46|
||om long-term equity|||||||||||||||
||vestment under|||||||||||||||
||uity method|||||||||||||||
|Lineq|ong-term equity||-||-||-||-|537,962,041.17|476,253,695.39||-|537,962,041.17|476,253,695.39|
||vestments under|||||||||||||||
||uity method|||||||||||||||
|Noteq|on-current assets||-||-||-||-|3,956,816,586.46|3,099,695,165.34||-|3,956,816,586.46|3,099,695,165.34|
||her than long-term|||||||||||||||
||uity investments|||||||||||||||
||||-||-||-||-|766,066,354.77|744,505,157.35||-|766,066,354.77|744,505,157.35|
|C|apital expenditure|||||||||||||||
|InEfrpr|cluding.:||-||-||-||-|618,112,321.24|370,358,484.62||-|618,112,321.24|370,358,484.62|
||xpenditure arising|||||||||||||||
||om construction in|||||||||||||||
||ogress|||||||||||||||
|Efrfi|xpenditure arising||-||-||-||-|9,074,553.13|7,272,623.79||-|9,074,553.13|7,272,623.79|
||om purchase of|||||||||||||||
||xed assets|||||||||||||||
|Efrin|xpenditure arising||-||-||-||-|138,879,480.40|366,874,048.94||-|138,879,480.40|366,874,048.94|
||om purchase of|||||||||||||||
||tangible assets|||||||||||||||

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting- continued
(3) External revenue by geographical area of source and non-current assets by geographical location All external revenuesof the Group were derived from PRC and all non-current assets of the Group were located in the PRC.
(4) Degree of reliance on major customers
There is no transaction from single customer accounting for over10% of the total income of the Group.
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1.Cash and bank balances
Unit: RMB
|||||
|-|-|-|-|
|Item|Amount in RMB||Amount in RMB|
|Cash:||||
|RMB|2,585.00|261.30||
|Hong Kong Dollar|1,546.82|36.26||
|Euro|2,834.80|3,298.10||
|United States Dollar|612.00|-||
|Sub-total|7,578.62|3,595.66||
|Bank balances:||||
|RMB|109,709,731.60|58,953,113.36||
|United States Dollar|376,431.83|382,680.65||
|Hong Kong Dollar|83,216.87|85,329.85||
|Sub-total|110,169,380.30|59,421,123.86||
|Other monetary funds:||||
|RMB|-|5,000.00||
|Sub-total|-|5,000.00||
|Total|110,176,958.92|59,429,719.52||

 2. Accounts receivable
(1) Disclosure of accounts receivable by categories:
Unit: RMB
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Closing balance||||||||||Opening balance|||||||||
||||Carrying amount||||Bad debt provision|||||Carrying amountProportion(Amount %)|Carrying amount||||Bad debt provision|||||
||||||||||||Net book|||||||||||
|||||P|roportio|||P|roportion||||||Proportion(||||Proportion(||Net book value|
||||||||||||value|||||||||||
||Category||Amount||n(%)||Amount||(%)||||Amount||%)||Amount||%)|||
|Arispd|ccounts|-||-||-||-||-||-||-||-||-||-||
||eceivable that are|||||||||||||||||||||
||ndividually|||||||||||||||||||||
||ignificant and|||||||||||||||||||||
||rovided for bad|||||||||||||||||||||
||ebt individually|||||||||||||||||||||
|A|ccounts receivable for which bad debt provision has been assessed by portfolios|||||||||||||||||||||
|P|ortfolio 1|-||-||-||-||-||-||-||-||-||-||
|P|ortfolio 2|34,730,740.71||99.53||347,307.44||1.00||34,383,433.27||40,523,415.65||99.60||405,234.19||1.00||40,118,181.46||
|Sp|ubtotal of|34,730,740.71||99.53||347,307.44||1.00||34,383,433.27||40,523,415.65||99.60||405,234.19||1.00||40,118,181.46||
||ortfolios|||||||||||||||||||||
|Arnswpai|ccounts|164,138.37||0.47||164,138.37||100.00||-||164,138.37||0.40||164,138.37||100.00||-||
||eceivable that are|||||||||||||||||||||
||ot individually|||||||||||||||||||||
||ignificant but for|||||||||||||||||||||
||hich bad debt|||||||||||||||||||||
||rovision has been|||||||||||||||||||||
||ssessed|||||||||||||||||||||
||ndividually|||||||||||||||||||||
|T|otal|34,894,879.08||100.00||511,445.81||||34,383,433.27||40,687,554.02||100.00||569,372.56||||40,118,181.46||

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 2. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued:
Accounts receivable that are not individually significant but for which bad debt provision has been assessed individually:
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Closing balance|||||||
||||||Bad debt||Proportion of|||
||Name of entity||Receivables||provision||provision (%)||Basis of provision|
|ST|henzhen Lanjing Offshore|164,138.37||164,138.37||100.00||Debtor is likely to go bankruptcy||
||echnology Co., Ltd.|||||||||

Accounts receivable portfolios for which bad debt provision has been assessed using the
percentage of accounts receivable method:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Closing balance|||||
|||||||Proportion of provision|
|Name of portfolio||Carrying amount||Bad debt provision||(%)|
|Portfolio 2|34,730,740.71||347,307.44||1.00||

 Basis for determining the above portfolio: See Note(III)10.2.
(2) Provision recorded and written off in the current period
No provision recorded in the current period, and provision written off in the current period is RMB 57,926.75.
(3) Top five entities with the largest balances of accounts receivable
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||||Proportion of|
|||||||||the amount to|
|||Relationship||||||the total|
|||with the||||||accounts|
|Name of entity||Company||Amount||Age||receivable(%)|
|Huizhou Operating Branch, CNOOC (China) Co., Ltd.|Not related||3,606,599.60||Within 1 year||10.34||
|Shenzhen Branch, CNOOC (China) Co., Ltd.|Not related||2,862,385.67||Within 1 year||8.20||
|Shenzhen Tuode Energy Services Ltd.|Not related||2,427,229.91||Within 1 year||6.96||
|CNOOC Engineering Underwater Technology|Not related||2,059,555.54||Within 1 year||5.90||
|(Shenzhen) Co., Ltd.|||||||||
|Shenzhen Weisheng Offshore Oil Technology Co., Ltd.|Not related||2,020,413.01||Within 1 year||5.79||
|Total|||12,976,183.73||||37.19||

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 3. 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|||||
|||||P|roportion(||||Proportion(||Net book value|||P|roportion(||||Proportion(%||Net book value|
||Category||Amount||%)||Amount||%)||||Amount||%)||Amount||)|||
|Otspd|ther receivables|-||-||-||-||-||-||-||-||-||-||
||hat are individually|||||||||||||||||||||
||ignificant and|||||||||||||||||||||
||rovided for bad|||||||||||||||||||||
||ebt individually|||||||||||||||||||||
|O|ther receivables for which bad debt provision has been assessed by portfolios|||||||||||||||||||||
|P|ortfolio 1|1,477,984,371.08||99.91||-||-||1,477,984,371.08||1,084,317,318.00||99.88||-||-||1,084,317,318.00||
|P|ortfolio 2|1,331,775.51||0.09||13,317.76||1.00||1,318,457.75||1,264,199.34||0.12||12,642.00||1.00||1,251,557.34||
|Sp|ubtotal of|1,479,316,146.59||100.00||13,317.76||-||1,479,302,828.83||1,085,581,517.34||100.00||12,642.00||-||1,085,568,875.34||
||ortfolios|||||||||||||||||||||
|Otiswpai|ther receivables|-||-||-||-||-||-||-||-||-||-||
||hat are not|||||||||||||||||||||
||ndividually|||||||||||||||||||||
||ignificant but for|||||||||||||||||||||
||hich bad debt|||||||||||||||||||||
||rovision has been|||||||||||||||||||||
||ssessed|||||||||||||||||||||
||ndividually|||||||||||||||||||||
|T|otal|1,479,316,146.59||100.00||13,317.76||||1,479,302,828.83||1,085,581,517.34||100.00||12,642.00||||1,085,568,875.34||

 Other receivables portfolios for which bad debt provision has been assessed using the percentage of accounts receivable method:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||Closing balance||||
||||Bad debt provision||Proportion of provision|
|Name of portfolio||Other receivables||Bad debt provision|(%)|
|Portfolio 2|1,331,775.51||13,317.76||1.00|

 Basis for determining the above portfolio: See Note(III)10.2.
(2) Provision recorded and written off in the current period
Provision recorded in the current period is RMB 675.76, and no provision written off in the current period.
(3) Top five entities with the largest balances of accounts receivable
Unit: RMB
||||||
|-|-|-|-|-|
|||||Proportion of the|
|||||amount to the total other|
|Name of entity||Amount||receivables(%)|
|Baowan Holdings|1,477,984,371.08||99.91||
|CNOOC Sales Shenzhen Co., Ltd.|264,600.00||0.02||
||178,595.71||0.01||
|Ping An Insurance (Group) Company of China Ltd. Shenzhen Shekou Sub-branch|||||
|CNOOC-OTIS JV|141,209.89||0.01||
|Frank Oilfield Service Co., Ltd.|118,955.94||0.01||
|Total|1,478,687,732.62||99.96||

SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
4. Long-term equity investments
Unit: RMB
|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||Changes in the current period|||||||||||||||||||
|||||||||||Ac|djustment on||||Announcing|||||||||
|||||||||I|nvestment income||other||||cash||||||||Closing|
||||||Increase in||Decrease in||recognized by||omprehensive||Other equity||dividends or||||||||balance on|
||Investee||Opening balance||investment||investment||equity method||income||changes||profits||Provision||Others||Closing balance||provision|
|1.|Subsidiaries|||||||||||||||||||||||
|B|aowan Holdings|830,531,987.58||-||-||-||-||-||-||-||-||830,531,987.58||-||
|S|henzhen Baowan|41,273,772.13||-||-||-||-||-||-||-||-||41,273,772.13||-||
|S|ubtotal|871,805,759.71||-||-||-||-||-||-||-||-||871,805,759.71||-||
|2.|Associates|||||||||||||||||||||||
|C|SE|369,433,367.09||-||-||57,878,180.98||-||-||-||-||-||427,311,548.07||-||
|C|DFC|101,105,139.15||-||-||4,096,895.16||-||-||-||-||-||105,202,034.31||-||
|C|PEC|5,715,189.15||-||-||(266,730.36)||-||-||-||-||-||5,448,458.79||-||
|S|ubtotal|476,253,695.39||-||-||61,708,345.78||-||-||-||-||-||537,962,041.17||-||
|T|otal|1,348,059,455.10||-||-||61,708,345.78||-||-||-||-||-||1,409,767,800.88||-||

 There is no restrictions on the ability of transferring funds to the Company from the investee entities which are held by the Company as long-term equity investment as at 31 December 2014.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 5.Long-term borrowings
(1)Categories of long-term borrowings
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Guaranteed loans (note)|182,524,302.04|165,048,306.62|

 Note1: The annual interest rate of the guaranteed loans is6.5500% (31 December 2013:6.5500%). Nanshan Group has provided a full-amount irrevocable guarantee with joint-liability for the said loans. See note (XIV) 9(3) for details.
6. Operating income and operating costs
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Amount recognized in the current period||||Amount recognized in the prior period|||
|Item||Operating income||Operating costs||Operating income||Operating costs|
|Principal operating activities|331,233,106.97||126,116,577.94||335,477,056.78||119,084,533.28||
|Other operating activities|8,606,126.89||2,888,454.36||14,834,601.43||12,844,024.86||
|Total|339,839,233.86||129,005,032.30||350,311,658.21||131,928,558.14||

 7. Investment income
(1)Details of investment income
Unit: RMB
||||||
|-|-|-|-|-|
|||Amount||Amount|
|||recognized in the||recognized in the|
|Item||current period||prior period|
|Income from long-term equity investments under equity method|61,708,345.78||62,622,013.46||
|Income from bank financing products|31,218,518.95||32,845,899.16||
|Income from long-term equity investments under cost method|2,287,265.95||2,160,354.98||
|Total|95,214,130.68||97,628,267.60||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 8. Supplementary information to the cash flow statement
(1)Supplementary information to the cash flow statement
Unit: RMB
||||||
|-|-|-|-|-|
|Supplementary information||Current period||Prior period|
|1. Reconciliation of net profit to cash flow from operating activities:|||||
|Net profit|148,882,226.75||150,233,196.97||
|Add: Provision for impairment losses of assets|(57,250.99)||109,482.06||
|Depreciation of fixed assets|10,090,148.00||9,525,137.43||
|Amortization of intangible assets|16,831,792.42||16,869,065.65||
|Depreciation of investment properties|5,415,819.00||5,324,508.55||
|Losses (gains) on disposal of fixed assets, intangible assets and|(89,433.39)||(223,284.16)||
|other long-term assetsFinancial expenses|79,914,822.59||91,976,345.99||
|Losses (gains) arising from investments|(95,214,130.68)||(97,628,267.60)||
|Decrease (increase) in deferred tax assets|13,504.75||(23,460.26)||
|Decrease (increase) in inventories|129,018.69||36,407.72||
|Decrease (increase) in receivables from operating activities|5,773,660.09||2,526,959.89||
|Increase (decrease) in payables from operating activities|6,042,970.66||19,063,756.61||
|Net cash flow from operating activities|177,733,147.89||197,789,848.85||
|2. Net changes in cash and cash equivalents:|||||
|Closing balance of cash (note)|110,176,958.92||59,424,719.52||
|Less: Opening balance of cash|59,424,719.52||853,607,179.80||
|Add: Closing balance of cash equivalents|-||-||
|Less: Opening balance of cash equivalents|-||-||
|Net increase (decrease) in cash and cash equivalents|50,752,239.40||(794,182,460.28)||

 9. Related party transactions
(1) Provision and receipt of services
Receipt of service
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and decision-making|||
||Details of related party|procedures of related party|Amount for the|Amount for the|
|Related party|transaction|transactions|current period|prior period|
|Chixiao Project Company|Construction service|By reference to market price|16,610,430.34|20,714,789.98|
|Nanshan Group|Power supply service|By reference to market price|3,317,186.17|2,815,330.70|
|Total|||19,927,616.51|23,530,120.68|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 9. Related party transactions- continued
(1)Provision and receipt of services - continued
Provision of service
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and decision-making|||
||Details of related party|procedures of related party|Amount for the|Amount for the|
|Related party|transaction|transactions|current period|prior period|
|CSE|Loading and unloading service|By reference to market price|6,521,955.54|7,415,958.81|
|CSE|Stack (storage)|By reference to market price|3,456,744.34|3,593,909.00|
|CPEC|Stack (storage)|By reference to market price|83,103.08|882,175.00|
|CPEC|Loading and unloading service|By reference to market price|822,671.55|117,607.23|
|Nanshan Group|Maintenance service|By reference to market price|32,883.57|31,058.22|
|Nanshan Group|Stack (storage)|By reference to market price|9,600.00|-|
|CDFC|Maintenance service|By reference to market price|18,147.00|-|
|Total|||10,945,105.08|12,040,708.26|

 (2) Leases with related parties
Leases where the Company is the lessor:
Unit: RMB
|||||
|-|-|-|-|
|||Lease income recognized|Lease income recognized|
|Name of lessee|Type of leased assets|in the current year|in the current year|
|Nanshan Group|Office building|6,062,897.67|6,651,072.60|
|CDFC|Office building|1,120,457.52|560,228.76|
|CSE|Office building|785,836.56|785,836.56|
|CPEC|Office building|464,490.72|437,832.00|
|Chiwan Real Estate|Office building|177,850.40|-|
|Nanshan Real Estate Company|Office building|80,645.76|79,683.84|
|Total||8,692,178.63|8,514,653.76|

 Leases where the Company is the lessee:
Unit: RMB
|||||
|-|-|-|-|
|||Lease payment recognized|Lease payment recognized|
|Name of lessor|Type of leased assets|in the current year|in the prior year|
|Nanshan Group|Site|29,151,086.50|28,708,824.65|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 9. Related party transactions- continued
(3) Guarantees with related parties
The Company as the guarantor:
Unit: RMB
||||||
|-|-|-|-|-|
|||Inception date of|Expiration date|Whether execution of guarantee|
|Guaranteed party|Guaranteed amount|guarantee|of guarantee|has been completed|
|Guangzhou Baowan|205,004,000.00|22/04/2014|21/04/2029|No|
|Wuhan Baowan|193,400,000.00|17/12/2014|16/12/2029|No|
|Nanjing Baowan|201,136,000.00|29/05/2014|28/05/2029|No|
|Total|599,540,000.00||||

The Company as theguaranteed party:
Unit: RMB
||||||
|-|-|-|-|-|
|||Inception date of|Expiration date|Whether execution of guarantee|
|Guarantor|Guaranteed amount|guarantee|of guarantee|has been completed|
|Nanshan Group|570,000,000.00|17/12/2012|17/12/2019|No|
|Nanshan Group|400,000,000.00|09/03/2012|09/03/2017|No|
|Baowan Holdings|400,000,000.00|07/09/2012|07/09/2015|No|
|Nanshan Group|200,000,000.00|31/03/2012|30/03/2029|No|
|Nanshan Group|120,000,000.00|29/11/2012|28/11/2029|No|
|Total|1,690,000,000.00||||

(4) Borrowings/loans with related parties
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Related party|||||||||
|||Amount for the|||||||
||Related party|current period||Inception date||Maturity date||Remarks|
||Borrowed from:||||||||
||Nanshan Group|300,000,000.00|03/07/2014||03/07/2015||||
||Lent to:||||||||
||Baowan Holdings|487,614,238.25|||||Note||

 Note: There is no fixed term for repayment for the above mentioned borrowings and loans. The interest rates are based on the market interest rates.
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 9. Related party transactions- continued
(5) Interest incomes and expenses with related parties
Interest income gained from deposits
Unit: RMB
||||||
|-|-|-|-|-|
||Type of related|Pricing principle of related|Amount for the current|Amount for the prior|
|Related party|party transaction|party transaction|period|period|
||Interest income|Negotiated interest rate(by reference to market rate)|53,071,839.37|47,903,162.99|
|Subsidiaries|||||
||Interest income|Negotiated interest rate(by reference to market rate)|146,894.86|-|
|CDFC.(note)|||||
||||53,218,734.23|47,903,162.99|
|Total|||||

 Note: Interest income from CDFC is generated from theCompany’s fixed deposits of RMB 85,000,000.00 and current deposits of RMB 4,077,788.66.
Interest expense for borrowings
Unit: RMB
||||||
|-|-|-|-|-|
||Type of related|Pricing principle of related|||
|Related party|party transaction|party transaction|Amount for the current period|Amount for the prior period|
||Interest expense|Negotiated interest rate (byreference to market rate)|56,046,666.66|47,705,000.00|
|Nanshan Group|||||

10. Amounts due from/to related parties
(1) Amounts due from related parties
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Closing balance||||Opening balance|||
|||||||Bad debt||||Bad debt|
|Item||Related party||Carrying amount||provision||Carrying amount||provision|
|Dividends receivable|CSE||-||-||48,000,000.00||-||
|Accounts receivable|CSE||557,417.99||5,574.18||3,854,041.82||38,540.42||
||CPEC||369,168.03||3,691.68||366,834.89||3,668.35||
||Nanshan Real EstateCompany||-||-||6,390.32||63.90||
||Chiwan Real Estate||22,231.30||222.31||-||-||
||Total||948,817.32||9,488.17||4,227,267.03||42,272.67||
|Other receivable|Baowan Holdings||1,477,039,190.87||-||1,083,299,193.15||-||
||CPEC||-||-||146,888.94||1,468.89||
||CSE||11,571.48||115.71||22,971.48||229.71||
||Total||1,477,050,762.35||115.71||1,083,469,053.57||1,698.60||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
(XIIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued 10. Amounts due from/to related parties - continued
(2) Amounts due to related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Related party|Closing balance|Opening balance|
|Accounts payable|Nanshan Group|5,559,882.42|6,132,919.30|
||CSE|16,554.40|16,554.40|
||Chixiao ConstructionCompany|9,740.00|9,740.00|
||Total|5,586,176.82|6,159,213.70|
|Interest payable|Nanshan Group|15,099,874.99|6,758,208.33|
|Other payables|Shenzhen Baowan|-|42,007,879.27|
||Nanshan Group|529,337.23|2,577,318.45|
||Chixiao ProjectCompany|7,172,014.47|1,277,632.65|
||Chixiao ConstructionCompany|1,133,894.52|500,000.00|
||CPEC|204,224.04|202,913.64|
||CSE|247,442.00|164,425.00|
||Total|9,286,912.26|46,730,169.01|
|Non-current liabilities due within one year|CSE|785,836.56|785,836.56|
|Other current liabilities|Nanshan Group|300,000,000.00|-|
|Other non-current liabilities|Nanshan Group|700,000,000.00|700,000,000.00|
||CSE|5,450,872.14|6,236,708.70|
||Total|705,450,872.14|706,236,708.70|

 11. Amounts deposited in / borrowed from related parties
Cash and bank balances deposited in related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Related party|Closing balance|Opening balance|
|Cash and bank balances|CDFC|89,077,788.66|-|

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2014
1. Breakdown of non-recurring profit or loss
Unit:RMB
||||
|-|-|-|
|Item||Amount|
|Profit or loss on disposal of non-current assets|189,620.61||
|Government grants recognized in profit or loss for the current period(other|9,686,859.21||
|than grants which are closely related to the Company's business and are|||
|either in fixed amounts or determined under quantitative methods in|||
|accordance with the national standard)|||
|Net profit or loss of subsidiaries from the beginning of the period up to the|(12,902,949.53)||
|business combination date recognized as a result of business combination of|||
|enterprises under common control|||
|Other non-operating income or expenses other than the above|2,002,874.30||
|Tax effects|(2,969,838.53)||
|Effects attributable to minority interests (after tax)|2,040,882.03||
|Total|(1,952,551.91)||

 Note: To improve the usage of spare cash, Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (the "Company") and its subsidiaries use spare cash to purchase bank financing products (see Note(V)42) every year, and classify the investment income gained form bank financing products as recurring profit and loss.
2. Return on equity (ROE) and earnings per share ("EPS")
The ROE and EPS have been prepared by the Company in accordance with Information Disclosure and Presentation Rules for Companies Making Public Offering of Securities No. 9 - Calculation and Disclosure of Return on Equity and Earnings per Share (Revised 2010) issued by China Securities Regulatory Commission.
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Weighted average return on||EPS|||
|Profit for the reporting period||net assets (%)||Basic EPS||Diluted EPS|
|Net profit attributable to ordinary|13.84%||0.95||Not applicable||
|shareholders of the Company|||||||
|Net profit after deduction of|13.96%||0.96||Not applicable||
|non-recurring profits or losses|||||||
|attributable to ordinary shareholders|||||||
|of the Company|||||||

SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2014
3. Abnormal financial statements items ("F/S items") and description of reasons
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||2013|||||
|||F/S items||2014||(restated)||Change by%||Cause for the changes|
||Cash and bankbalances||375,328,861.18||299,910,369.63||25.15%||Mainly due to increase inloansand taking back principal balance offinancing products in the current period.||
|1|||||||||||
||Other receivables||61,287,160.23||62,963,514.81||(2.66%)||Mainly due to decrease in refundable prepayment for land use rightof subsidiaries.||
|2|||||||||||
||Dividendsreceivable||-||48,000,000.00||(100.00%)||Mainly due to receiving dividends announced by Shenzhen ChiwanSembawang Engineering Co., Ltd., associate of the Company in theprior period.||
|3|||||||||||
|4|Other current assets||390,000,000.00||669,950,582.00||(41.79%)||Mainly due to decrease in investment in bank financing products.||
||Construction inprogress||300,456,627.34||376,158,459.02||(20.12%)||Mainly caused by some subsidiaries' construction in progresstransferred into fixed assets in current period, specifically the lot Alogistics park constriction of Guangzhou Baowan Logistics Co.,Ltd,, logistics park construction projects of Nanjing BaowanInternational Logistics Co., Ltd, Nantong Baowan InternationalLogistics Co., Ltd and Phase III project of Chengdu LongquanBaowan International Logistics Co., Ltd.||
|5|||||||||||
||Intangible assets||1,341,187,179.75||1,242,104,033.51||7.98%||Mainly due to some subsidiaries' acquisition of land use rights, i.e.Nantong Baowan International Logistics Co., Ltd, Wuxi BaowanWarehouse Equipment Co., Ltd.||
|6|||||||||||
||Other non-currentassets||253,572,620.64||44,164,977.18||474.15%||Mainly due to increase in prepayments for lands of somesubsidiaries during the current period.||
|7|||||||||||
|8|Other payables||439,034,917.38||257,405,077.79||70.56%||Mainly due to input of construction in progress of some subsidiaries,leading to increase in payables to construction contractors.||
|9|Non-currentliabilities due withinone year||1,349,351.16||311,049,351.16||(99.57%)||Mainly caused by repaying of long-term borrowings due within oneyear.||
|10|Long-termborrowings||390,816,685.64||185,443,647.96||110.75%||Mainly due to increase of long-term borrowings in current period.||
|11|Operating income||712,958,603.26||691,832,626.47||3.05%||Mainly arising from performance growth of the Company and somesubsidiaries.||
|12|Operating costs||259,661,927.23||252,860,477.85||2.69%||Mainly arising from performance growth of the Company and somesubsidiaries.||
||General andadministrativeexpenses||95,231,275.15||89,099,231.46||6.88%||Mainly due to increase in amortization and taxation expense in thecurrent period.||
|13|||||||||||

The supplementary information was signed by the following responsible persons on 10March 2015:
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
SUPPLEMENTARY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2014
TianJunyan Yu Zhongxia Sun Yuhui Legal Representative Person in Charge of Chief Accountant the Accounting Body