SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD. Financial Statements for the First Half of 2014 (Unaudited)
August 2014
Financial Statements for the First Half of 2014 (Unaudited)
I. Audit Report
Whether or not audited for the half-year report:
□ Yes√ No
II. Financial Statements
The currency for the explanatory notes of financial statements is: RMB Yuan
1、Consolidated Balance Sheet
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD
Currency： RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Current Assets:|||
|Cash and Cash Equivalents|156,165,466.03|233,332,680.86|
|Deposit Reservation for Balance|||
|Lending to Banks and Other Financial Institutions|||
|Held for Trading Financial Assets|||
|Notes Receivable|||
|Accounts Receivable|114,574,200.62|55,359,989.14|
|Accounts Prepayment|967,941.93|552,431.59|
|Insurance Premium Receivable|||
|Reinsurance Accounts Receivable|||
|Reinsurance Reserve Receivable|||
|Accrued Interest Receivable||4,797,363.01|
|Dividend Receivable||48,000,000.00|
|Other Receivables|61,435,520.68|61,658,096.81|
|Redemptory Monetary Capital for Sale|||
|Inventories|965,725.26|996,356.55|
|Current Portion of Non-current Assets|||
|Other Current Assets|515,000,000.00|547,610,000.00|
|Subtotal of Current Assts|849,108,854.52|952,306,917.96|
|Non-current Assets|||
|Disbursement of Entrust Loans and Advance|||
|Financial Assets Available for Sale|||
|Held-to-maturity Investment|||
|Long-term Accounts Receivable|||
|Long-term Investment on Stocks|501,755,861.53|476,253,695.39|
|Investment Real Estate|938,480,668.66|904,216,455.40|

||||
|-|-|-|
|Fixed Assets|530,074,826.83|516,378,454.46|
|Construction-in-progress|609,922,868.96|376,118,459.02|
|Engineer Material|||
|Liquidation of Fixed Assets|16,643.86||
|Capitalized Biological Assets|||
|Oil and Gas Assets|||
|Intangible Assets|1,222,747,630.14|1,242,104,033.52|
|Development Expenditure|||
|Goodwill|||
|Long-term Deferred Expenses|||
|Deferred Income Tax Assets|14,553,664.89|16,413,246.95|
|Other Non-current Assets|165,869,983.05|17,273,362.26|
|Subtotal of Non-current Assets|3,983,422,147.92|3,548,757,707.00|
|Total Assets|4,832,531,002.44|4,501,064,624.96|
|Current Liabilities|||
|Short-term Loans|||
|Borrowing from the Central Bank|||
|Accept Money Deposits and Call Loans from Banks|||
|Other Financial Institutions|||
|Transactional Monetary Liabilities|||
|Notes Payable|||
|Accounts Payable|15,743,430.21|10,629,691.02|
|Downpayment Received|5,843,572.95|6,130,153.26|
|Financial Assets Sold for Repurchase|||
|Commission Payable|||
|Payroll Payable|20,765,185.77|29,173,650.77|
|Tax Payable|34,112,961.80|47,821,808.03|
|Accrued Interest Payable|53,095,506.20|28,339,479.77|
|Dividend Payable|||
|Other Payables|344,996,639.06|235,814,254.97|
|Dividend Payable for Reinsurance|||
|Reserves for Insurance Contract|||
|Acting Trading Securities|||
|Acting Underwriting Securities|||
|Current Portion of Non-current Liabilities|310,749,351.16|311,049,351.16|
|Other Non-current Liabilities|||
|Subtotal of Current Liabilities|785,306,647.15|668,958,388.98|
|Non-current Liabilities|||
|Long-term Loans|265,719,036.25|185,443,647.96|
|Bonds Payable|964,936,500.00|964,195,500.00|
|Long-term Accounts Payable|212,011,691.49|212,011,691.49|
|Special Accounts Payable|||
|Accrued Liabilities|||

||||
|-|-|-|
|Deferred Income Tax Liabilities|||
|Other Non-current Liabilities|718,391,585.08|719,066,260.66|
|Subtotal of Non-current Liabilities|2,161,058,812.82|2,080,717,100.11|
|Total Liabilities|2,946,365,459.97|2,749,675,489.09|
|Owner's Equity( Shareholders‟ Equity)|||
|Paid-in Capital (Capital Stock)|230,600,000.00|230,600,000.00|
|Capital Reserves|234,141,186.09|234,141,186.09|
|Less : Treasury Stock|||
|Special Reserves|3,434,216.33|2,622,730.81|
|Surplus Reserves|292,196,407.57|284,684,747.72|
|General Risk Reserve|||
|Retained Earnings|833,151,344.10|720,937,883.66|
|Translation Reserve|||
|Total Chiwan Base Shareholders‟ Equity|1,593,523,154.09|1,472,986,548.28|
|Non-controlling interests|292,642,388.38|278,402,587.59|
|Total Shareholders‟ Equity|1,886,165,542.47|1,751,389,135.87|
|Total Liabilities and Equities|4,832,531,002.44|4,501,064,624.96|

 Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui2、Parent Company Balance Sheet
Currency： RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Current Assets:|||
|Cash and Cash Equivalents|100,383,972.84|59,429,719.52|
|Held for Trading Financial Assets|||
|Notes Receivable|||
|Accounts Receivable|101,850,456.25|40,118,181.46|
|Accounts Prepayment|357,993.37|163,921.32|
|Accrued Interest Receivable||4,797,363.01|
|Dividend Receivable||48,000,000.00|
|Other Receivables|1,147,431,326.60|1,085,568,875.34|
|Inventories|722,531.99|747,075.29|
|Current Portion of Non-current Assets|||
|Other Current Assets|515,000,000.00|547,610,000.00|
|Subtotal of Current Assts|1,865,746,281.05|1,786,435,135.94|
|Non-current Assets|||
|Financial Assets Available for Sale|||
|Held-to-maturity Investment|||
|Long-term Accounts Receivable|||
|Long-term Investment on Stocks|1,373,561,621.24|1,348,059,455.10|
|Investment Real Estate|111,736,049.72|106,792,020.08|
|Fixed Assets|71,616,068.82|74,973,379.32|

||||
|-|-|-|
|Construction-in-progress|3,380,698.05|7,174,594.15|
|Engineer Material|||
|Liquidation of Fixed Assets|2,797.36||
|Capitalized Biological Assets|||
|Oil and Gas Assets|||
|Intangible Assets|317,381,686.04|325,806,871.10|
|Development Expenditure|||
|Goodwill|||
|Long-term Deferred Expenses|||
|Deferred Income Tax Assets|151,389.97|151,389.97|
|Other Non-current Assets|501,138.74|585,092.78|
|Subtotal of Non-current Assets|1,878,331,449.94|1,863,542,802.50|
|Total Assets|3,744,077,730.99|3,649,977,938.44|
|Current Liabilities|||
|Short-term Loans|||
|Transactional Monetary Liabilities|||
|Notes Payable|||
|Accounts Payable|15,582,036.20|9,934,722.92|
|Downpayment Received|||
|Payroll Payable|15,073,569.46|19,641,409.26|
|Tax Payable|18,308,699.61|28,393,537.23|
|Accrued Interest Payable|53,095,506.20|28,301,589.75|
|Dividend Payable|||
|Other Payables|58,825,936.74|65,217,657.24|
|Current Portion of Non-current Liabilities|310,749,351.16|311,049,351.16|
|Other Non-current Liabilities|||
|Subtotal of Current Liabilities|471,635,099.37|462,538,267.56|
|Non-current Liabilities|||
|Long-term Loans|178,788,812.34|165,048,306.62|
|Bonds Payable|964,936,500.00|964,195,500.00|
|Long-term Accounts Payable|||
|Special Accounts Payable|||
|Accrued Liabilities|||
|Deferred Income Tax Liabilities|||
|Other Non-current Liabilities|718,391,585.08|719,066,260.66|
|Subtotal of Non-current Liabilities|1,862,116,897.42|1,848,310,067.28|
|Total Liabilities|2,333,751,996.79|2,310,848,334.84|
|Owner's Equity( Shareholders‟ Equity)|||
|Paid-in Capital (Capital Stock)|230,600,000.00|230,600,000.00|
|Capital Reserves|204,534,849.49|204,534,849.49|
|Less : Treasury Stock|||
|Special Reserves|3,329,604.40|2,533,941.99|
|Surplus Reserves|292,196,407.57|284,684,747.72|

||||
|-|-|-|
|Retained Earnings|||
|Translation Reserve|679,664,872.74|616,776,064.40|
|Total Shareholders‟ Equity|||
|Total Liabilities and Equities|1,410,325,734.20|1,339,129,603.60|

 Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui3、Consolidated Income Statement
Currency： RMB Yuan
||||
|-|-|-|
|Items|Current Period|Prior Period|
|1. Gross Revenue|350,271,977.64|324,914,333.97|
|Incl. : Operation Revenue|350,271,977.64|324,914,333.97|
|Interest Revenue|||
|Earned Premium|||
|Commission Revenue|||
|2. Total operating cost|237,753,725.86|234,514,491.98|
|Incl. : Operating cost|120,852,155.43|112,798,866.77|
|Interest Expenses|||
|Commission Expenses|||
|Surrender Value|||
|Net Payments for Insurance Claims|||
|Net Provision for Insurance Contracts|||
|Expenditures Dividend Policy|||
|Amortized Reinsurance Expenditures|||
|Business Tax and Surcharge|13,651,669.03|15,490,211.47|
|Selling Expenses|34,889.70|43,267.18|
|Administrative Expenses|39,717,743.31|35,431,311.90|
|Financial Expenses|63,497,268.39|70,750,834.66|
|Assets Impairment Loss|||
|Plus: Fair Value Change Income(“-” for net loss)|||
|Investment Income(“-” for net loss)|38,069,398.50|34,925,937.12|
|Incl.: Investment Income from Associate and Joint|||
||25,502,166.14|24,385,334.51|
|Venture|||
|Exchange Earnings(“-” for net loss)|||
|3. Operating Profits(“-” for net loss)|150,587,650.28|125,325,779.11|
|Plus: Non-operating Income|5,959,210.52|2,605,878.97|
|Less: Non-operating Expenses|-122,610.32|10,836.15|
|Incl.: Loss of Liquidation of Non-current Assets|6,736.19||
|4. Total Profit(“-” for net loss)|156,669,471.12|127,920,821.93|
|Less: Income Taxes Expenses|22,704,550.04|18,939,004.80|
|5. Net Profit(“-” for net loss)|133,964,921.08|108,981,817.13|
|Incl.: Net Profit before Consolidated|||
|Net Profit attributable to Controlling Interests|119,725,120.29|97,688,879.23|

||||
|-|-|-|
|Net Profit attributable to Non-controlling Interests|14,239,800.79|11,292,937.90|
|6. Earnings per Share(EPS)|--|--|
|1) Basic EPS|0.52|0.42|
|2) Diluted EPS|0.52|0.42|
|7. Other Comprehensive Income|||
|8. Total Comprehensive Income|133,964,921.08|108,981,817.13|
|Total comprehensive income attributable to the owners of|||
||119,725,120.29|97,688,879.23|
|parent company|||
|Total comprehensive income attributable to non-controlling|||
||14,239,800.79|11,292,937.90|
|interests|||

Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui4、Parent Company Income Statement
Currency： RMB Yuan
||||
|-|-|-|
|Items|Current Period|Prior Period|
|1. Gross Revenue|171,989,981.46|157,047,311.82|
|Less: Operating cost|62,571,965.39|56,521,556.16|
|Business Tax and Surcharge|3,316,855.42|3,218,208.78|
|Selling Expenses|||
|Administrative Expenses|20,003,815.36|19,286,625.36|
|Financial Expenses|40,035,192.70|46,707,597.28|
|Assets Impairment Loss|||
|Plus: Fair Value Change Income(“-” for net loss)|||
|Investment Income(“-” for net loss)|38,069,398.50|34,925,937.12|
|Incl.: Investment Income from Associate and Joint|||
||25,502,166.14|24,385,334.51|
|Venture|||
|2. Operating Profits(“-” for net loss)|84,131,551.09|66,239,261.36|
|Plus: Non-operating Income|1,417,641.41|2,524,883.15|
|Less: non-operating Expenses|2,566.24|3,180.00|
|Incl.: Loss of Liquidation of Non-current Assets|566.24||
|3. Total Profit(“-” for net loss)|85,546,626.26|68,760,964.51|
|Less: Income Taxes Expenses|15,146,158.07|11,117,895.54|
|4. Net Profit(“-” for net loss)|70,400,468.19|57,643,068.97|
|5. Earnings per Share(EPS)|--|--|
|1) Basic EPS|||
|2) Diluted EPS|||
|6. Other Comprehensive Income|||
|7. Total Comprehensive Income|70,400,468.19|57,643,068.97|

 Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui
5、Consolidated Statement of Cash Flows
Currency： RMB Yuan
||||
|-|-|-|
|Items|Current Period|Prior Period|
|1. Cash Flows from Operating Activities|||
|Cash from Sales of Goods & Services|311,455,044.44|321,103,493.38|
|Net Increase in Customer Bank Deposits and due to Banks and Other Financial|||
|Institutions|||
|Net Increase in Borrowings from Central Bank|||
|Net Increase in Placements from Other Financial Institutions|||
|Cash from Insurance Premium of Original Insurance Contracts|||
|Net cash received from reinsurance business|||
|Net increase in deposits from policyholders|||
|Net increase from disposal of tradable financial assets|||
|Cash from Interest、 Handling Charges and commission Income|||
|Net Increase in Placements from Banks and Other Financial Institutions|||
|Net Increase in Repurchase Business Capital|||
|Tax Refunds|653,064.01||
|Cash from Other Operating-related Activities|15,314,474.44|18,172,400.70|
|Subtotal of Cash Inflows from Operating Activities|327,422,582.89|339,275,894.08|
|Cash Paid for Purchasing of Goods&Services|55,626,917.25|42,129,375.84|
|Net Increase in Loans and Advances to Customers|||
|Net Increase in Deposits with Central Bank and Other Financial Institutions|||
|Cash Paid for Claims of Original Insurance Contracts|||
|Cash Paid for Interest、 Handling Charges and Commission Income|||
|Cash Paid for Policy Dividends|||
|Cash Paid for Staffs|47,332,021.10|41,664,910.17|
|Taxes and Dues|70,880,585.86|49,688,375.09|
|Cash Paid for Other Operating-related Activities|17,023,171.27|12,586,112.84|
|Subtotal of Cash Outflows from Operating Activities|190,862,695.48|146,068,773.94|
|Net Cash Flows from Operating Activities|136,559,887.41|193,207,120.14|
|2. Cash Flows from Investing Activities|||
|Cash from Disinvestment|||
|Cash from Investment Income|48,000,000.00|22,400,000.00|
|Net Cash from Disposal of Fixed Assets, Intangible Assets and Other|||
||3,061.50|13,880.00|
|Long-term Assets|||
|Net Cash Received from Disposal of Subsidiaries and Other Business Units|||
|Cash Received from Other Investing-related Activities|1,638,964,595.37|2,101,374,356.03|
|Sub-total of Cash Inflows from Investing Activities|1,686,967,656.87|2,123,788,236.03|
|Cash Paid for Construction of Fixed Assets, Intangible Assets and Other|||
||348,664,062.43|181,051,150.76|
|Long-term Assets|||
|Cash Paid for Investment|||
|Net Increase in Pledge Loans|||
|Net Cash Paid for Acquisition of Subsidiaries and Other Business Units|||
|Cash Paid for Other Investing-related Activities|1,588,990,000.00|2,370,000,000.00|
|Subtotal of Cash Outflows from Investing Activities|1,937,654,062.43|2,551,051,150.76|

||||
|-|-|-|
|Net Cash Flows from Investing Activities|-250,686,405.56|-427,262,914.73|
|3. Cash Flows from Financing Activities|||
|Cash Received from Absorbing Investment|||
|Incl. : Cash from absorbing minority investment|||
|Cash Received from Borrowings|80,275,388.29|16,874,390.11|
|Cash Received from Bonds Issuance|||
|Cash from Other Financing-related Activities||4,790,521.86|
|Subtotal of Cash Inflows from Financing Activities|80,275,388.29|21,664,911.97|
|Debt Redemption|300,000.00|207,300,000.00|
|Cash Paid for Dividends or Interests|39,534,884.97|45,937,239.53|
|Incl : Dividends and Profits Paid by Subsidiaries to Minorities|||
|Cash Paid for Other Financing-related Activities|3,481,200.00|1,200,000.00|
|Sub-total of Cash Outflows from Financing Activities|43,316,084.97|254,437,239.53|
|Net Cash Flows from Financing Activities|36,959,303.32|-232,772,327.56|
|4. Influence from Fluctuations in Exchange for Cash and Cash Equivalents||-233.29|
|5. Net Increase in Cash and Cash Equivalents|-77,167,214.83|-466,828,355.44|
|Plus: Beginning Balance of Cash and Cash Equivalents|233,332,680.86|893,354,140.32|
|6. Ending Balance of Cash and Cash Equivalents|156,165,466.03|426,525,784.88|

 Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui6、Parent Company Statement of Cash Flows
Currency： RMB Yuan
||||
|-|-|-|
|Items|Current Period|Prior Period|
|1. Cash Flows from Operating Activities|||
|Cash from Sales of Goods & Services|120,153,661.69|150,006,408.75|
|Tax Refunds|653,064.01||
|Cash from Other Operating-related Activities|1,921,833.27|14,713,904.63|
|Subtotal of Cash Inflows from Operating Activities|122,728,558.97|164,720,313.38|
|Cash Paid for Purchasing of Goods&Services|31,954,421.61|27,516,241.09|
|Cash paid for Staffs|27,572,514.03|23,872,166.62|
|Taxes and Dues|38,065,047.93|23,735,906.17|
|Cash Paid for Other Operating-related Activities|10,160,623.97|6,402,435.80|
|Subtotal of Cash Outflows from Operating Activities|107,752,607.54|81,526,749.68|
|Net Cash Flows from Operating Activities|14,975,951.43|83,193,563.70|
|2. Cash Flows from Investing Activities|||
|Cash from Disinvestment|||
|Cash from Investment Income|48,000,000.00|50,137,557.54|
|Net Cash from Disposal of Fixed Assets, Intangible Assets and Other|||
|||10,880.00|
|Long-term Assets|||
|Net Cash Received from Disposal of Subsidiaries and Other Business Units|||
|Cash Received from Other Investing-related Activities|1,999,964,595.37|2,574,374,426.03|
|Subtotal of Cash Inflows from Investing Activities|2,047,964,595.37|2,624,522,863.57|

||||
|-|-|-|
|Cash Paid for Construction of Fixed Assets, Intangible Assets and Other|||
||5,239,990.48|7,557,371.25|
|Long-term Assets|||
|Cash Paid for Investment|||
|Net Cash Paid for Acquisition of Subsidiaries and Other Business Units|||
|Cash Paid for Other Investing-related Activities|1,987,155,720.58|3,014,984,991.37|
|Subtotal of Cash Outflows from Investing Activities|1,992,395,711.06|3,022,542,362.62|
|Net Cash Flows from Investing Activities|55,568,884.31|-398,019,499.05|
|3. Cash Flows from Financing Activities|||
|Cash Received from Absorbing Investment|||
|Cash received from Borrowings|13,740,505.72|16,874,390.11|
|Cash from Other Financing-related Activities|||
|Subtotal of Cash Inflows from Financing Activities|3,399,247.26|2,315,061.99|
|Debt Redemption|17,139,752.98|19,189,452.10|
|Cash Paid for Dividends or Interests|300,000.00|207,300,000.00|
|Cash Paid for Other Financing-related Activities|37,909,262.35|45,937,239.53|
|Subtotal of Cash Outflows from Financing Activities|8,521,073.05|2,268,073.57|
|Net Cash Flows from Financing Activities|46,730,335.40|255,505,313.10|
|4. Influence from Fluctuations in Exchange for Cash and Cash Equivalents|-29,590,582.42|-236,315,861.00|
|5. Net Increase in Cash and Cash Equivalents||-233.29|
|Plus: Beginning Balance of Cash and Cash Equivalents|40,954,253.32|-551,142,029.64|
|6. Ending Balance of Cash and Cash Equivalents|59,429,719.52|853,612,179.80|

 Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui
7、Consolidated Statement of Changes in Equity
Current Period
Currency： RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Current Period||||||||||
||Stockholders' equity in parent company||||||||||
|Items|||||||||||
||||Loss：|||General|||Minority interests|Total owner's|
||Paid-in Capital|||Special|||||||
|||Capital Reserves|||Surplus reserves||Retained Earnings|Others||equity|
||||Treasury|||risk|||||
||(Capital Stock)|||reserves|||||||
||||stock|||reserve|||||
|1. Ending Balance of Last Year|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|
|plus：Changes in Accounting|||||||||||
|Policies|||||||||||
|Corrections of Prior Period|||||||||||
|Errors|||||||||||
|Others|||||||||||
|2.Beginning Balance of Current|||||||||||
||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|
|Period|||||||||||
|3. Changes for Current Period|||||||||||
|||||811,485.52|7,511,659.85||112,213,460.44||14,239,800.79|134,776,406.60|
|("-" stands for decrease)|||||||||||
|(1) Net Profit|||||||119,725,120.29||14,239,800.79|133,964,921.08|
|(2)Other Comprehensive|||||||||||
|Income|||||||||||
|Sub-total for (1) and (2) above|||||||119,725,120.29||14,239,800.79|133,964,921.08|
|Investment by Owners and|||||||||||
|Decreased in Capital|||||||||||
|1) Contributed Capital by|||||||||||
|Owners|||||||||||
|2)Share-based Payment in|||||||||||
|Shareholders' Equity|||||||||||
|3)Others|||||||||||
|(4)Profit Distribution|||||7,511,659.85||-7,511,659.85||||
|1) Appropriation of|||||||||||
||||||7,511,659.85||-7,511,659.85||||
|Surplus Reserves|||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|2)Appropriation of||||||||
|General Risk Reserve||||||||
|3) Distribution for Owners( or||||||||
|Stockholders )||||||||
|4) Others||||||||
|(5)Inside Carry-over within||||||||
|Shareholders' Equity||||||||
|1)Capital Surplus Convert to||||||||
|Capital or Stock||||||||
|2)Surplus Reserves Convert to||||||||
|Capital or Stock||||||||
|3) Surplus Reserves Cover the||||||||
|Deficit||||||||
|4)Others||||||||
|(6) Special Reserves|||811,485.52||||811,485.52|
|1) Current Extraction|||1,200,538.14||||1,200,538.14|
|2) Current Usage|||-389,052.62||||-389,052.62|
|(7) Others||||||||
|4.Ending Balance of Current|||||||1,886,165,542.47|
||230,600,000.00|234,141,186.09|3,434,216.33|292,196,407.57|833,151,344.10|292,642,388.38||
|Period||||||||

Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui
Prior Period
Currency： RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Prior Period||||||||||
||Stockholders' equity in parent company||||||||||
|Items|||||||||||
||||Loss：|Specialreserves|Surplus reserves|Generalrisk|||Minority interests|Total owner's|
||Paid-in Capital||||||RetainedEarnings||||
|||Capital Reserves||||||Others||equity|
||||Treasury||||||||
||(Capital Stock)||||||||||
||||stock|||reserve|||||
|1. Ending Balance of Last Year|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|
|Plus: Retroactive adjustment|||||||||||
|under the same control for|||||||||||
|business combination|||||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|plus：Changes in Accounting||||||||
|Policies||||||||
|Corrections of Prior Period||||||||
|Errors||||||||
|Others||||||||
|2.Beginning Balance of Current||||||||
||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|
|Period||||||||
|3. Changes for Current Period||||||||
||||1,153,220.78|20,858,657.15|163,415,167.01|16,708,167.18|202,135,212.12|
|("-" stands for decrease)||||||||
|(1) Net Profit|||||207,564,394.21|16,708,167.18|224,272,561.39|
|(2)Other Comprehensive Income||||||||
|Sub-total for (1) and (2) above|||||207,564,394.21|16,708,167.18|224,272,561.39|
|Investment by Owners and||||||||
|Decreased in Capital||||||||
|1) Contributed Capital by Owners||||||||
|2)Share-based Payment in||||||||
|Shareholders' Equity||||||||
|3)Others||||20,858,657.15|-44,149,227.20||-23,290,570.05|
|(4)Profit Distribution||||20,858,657.15|-44,149,227.20||-23,290,570.05|
|1) Appropriation of Surplus||||||||
|||||20,858,657.15|-20,858,657.15|||
|Reserves||||||||
|2)Appropriation of General||||||||
||||||||-23,290,570.05|
|Risk Reserve||||||||
|3) Distribution for Owners( or||||||||
||||||-23,290,570.05||-23,290,570.05|
|Stockholders )||||||||
|4) Others||||||||
|(5)Inside Carry-over within||||||||
|Shareholders' Equity||||||||
|1)Capital Surplus Convert to||||||||
|Capital or Stock||||||||
|2)Surplus Reserves Convert to||||||||
|Capital or Stock||||||||
|3) Surplus Reserves Cover the||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Deficit|||||||||
|4)Others||||||||1,153,220.78|
|(6) Special Reserves|||1,153,220.78|||||1,153,220.78|
|1) Current Extraction|||1,713,819.06|||||1,713,819.06|
|2) Current Usage|||-560,598.28|||||-560,598.28|
|(7) Others|||||||||
|4.Ending Balance of Current|||||||||
||230,600,000.00|234,141,186.09|2,622,730.81|284,684,747.7|2|720,937,883.66|278,402,587.59|1,751,389,135.87|
|Period|||||||||

Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui
8、Parent Company Statement of Changes in Equity
Current Period
Currency： RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Current Period||||||||
|Items|||Loss：||||||
||Paid-in Capital|||SpecialReserves||General Risk||Total Owner's|
|||Capital Reserves|||Surplus Reserves||Retained Earnings||
||||Treasury||||||
||(Capital Stock)|||||Reserve||Equity|
||||Stock||||||
|1. Ending Balance of Last Year|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|
|plus：Changes in Accounting Policies|||||||||
|Corrections of Prior Period Errors|||||||||
|Others|||||||||
|2.Beginning Balance of Current Period|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|
|3. Changes for Current Period ("-" stands for|||||||||
|||||795,662.41|7,511,659.85||62,888,808.34|71,196,130.60|
|decrease)|||||||||
|(1) Net Profit|||||||70,400,468.19|70,400,468.19|
|(2)Other Comprehensive Income|||||||||
|Sub-total for (1) and (2) above|||||||70,400,468.19|70,400,468.19|
|Investment by Owners and Decreased in Capital|||||||||
|1) Contributed Capital by Owners|||||||||
|2)Share-based Payment in Shareholders' Equity|||||||||

||||||||
|-|-|-|-|-|-|-|
|3)Others|||||||
|(4)Profit Distribution||||7,511,659.85|-7,511,659.85||
|1) Appropriation of Surplus Reserves||||7,511,659.85|-7,511,659.85||
|2)Appropriation of General Risk Reserve|||||||
|3) Distribution for Owners( or Stockholders )|||||||
|4) Others|||||||
|(5)Inside Carry-over within Shareholders' Equity|||||||
|1)Capital Surplus Convert to Capital or Stock|||||||
|2)Surplus Reserves Convert to Capital or Stock|||||||
|3) Surplus Reserves Cover the Deficit|||||||
|4)Others|||||||
|(6) Special Reserves|||795,662.41|||795,662.41|
|1) Current Extraction|||1,168,764.84|||1,168,764.84|
|2) Current Usage|||-373,102.43|||-373,102.43|
|(7) Others|||||||
|4.Ending Balance of Current Period|230,600,000.00|204,534,849.49|3,329,604.40|292,196,407.57|679,664,872.74|1,410,325,734.20|

 Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui
Prior Period
Currency： RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Prior Period||||||||
|Items|||Loss：||||||
||Paid-in Capital|||Special||General Risk|||
|||Capital Reserves|||Surplus Reserves||Retained Earnings|Total Owner's Equity|
||||Treasury||||||
||(Capital Stock)|||Reserves||Reserve|||
||||Stock||||||
|1. Ending Balance of Last Year|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|
|plus：Changes in Accounting Policies|||||||||
|Corrections of Prior Period Errors|||||||||
|Others|||||||||
|2.Beginning Balance of Current Period|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|

||||||||
|-|-|-|-|-|-|-|
|3. Changes for Current Period ("-" stands for|||||||
||||1,105,442.19|20,858,657.15|106,083,969.77|128,048,069.11|
|decrease)|||||||
|(1) Net Profit|||||150,233,196.97|150,233,196.97|
|(2)Other Comprehensive Income|||||||
|Sub-total for (1) and (2) above|||||150,233,196.97|150,233,196.97|
|Investment by Owners and Decreased in Capital|||||||
|1) Contributed Capital by Owners|||||||
|2)Share-based Payment in Shareholders' Equity|||||||
|3)Others|||||||
|(4)Profit Distribution||||20,858,657.15|-44,149,227.20|-23,290,570.05|
|1) Appropriation of Surplus Reserves||||20,858,657.15|-20,858,657.15||
|2)Appropriation of General Risk Reserve|||||||
|3) Distribution for Owners( or Stockholders )|||||-23,290,570.05|-23,290,570.05|
|4) Others|||||||
|(5)Inside Carry-over within Shareholders' Equity|||||||
|1)Capital Surplus Convert to Capital or Stock|||||||
|2)Surplus Reserves Convert to Capital or Stock|||||||
|3) Surplus Reserves Cover the Deficit|||||||
|4)Others|||||||
|(6) Special Reserves|||1,105,442.19|||1,105,442.19|
|1) Current Extraction|||1,660,540.47|||1,660,540.47|
|2) Current Usage|||-555,098.28|||-555,098.28|
|(7) Others|||||||
|4.Ending Balance of Current Period|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|

 Legal Representative: Tian Junyan Accounting Supervisor: Yu Zhongxia Accounting Department Principal: Sun Yuhui
III. 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 scopes of the Company and its subsidiaries (together 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.
IV. THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES, ACCOUNTING ESTIMATES, AND PRIOR PERIOD ERRORS
1、Basis of Preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises ("ASBE") issued by the Ministry of Finance ("MoF") on 15 February 2006. In addition, the Group has disclosed relevant financial information in accordance with Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in 2010).
Basis of keeping accounts and principle of valuation
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 relevant requirements.
2、Statements of Compliance with the ASBE
The financial statements of the Company have been prepared in accordance with ASBE, and present truly and completely, the Company's and consolidated financial position as of 30 June 2014, and the Company's and consolidated results of operations and cash flows for the half-year then ended in 2014.
3、Accounting Period
The Group has adopted the calendar year as its accounting year, i.e. from 1 January to 31 December.
4、Functional Currency
Renminbi (“RMB”) is the currency of the primary economic environment in which the Company and its subsidiaries operate. Therefore, the Company and its subsidiaries choose RMB as their functional currency.
The
Group adopts RMB to prepare its financial statements.
5、The accounting treatment of business combinations involving enterprises under common control and business combinations not involving enterprises under common control
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
A business combination not involving enterprises under common control is a business combination in which all of the combining enterprises are not ultimately controlled by the same party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree. The intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services, etc. and other associated administrative expenses attributable to the business combination are recognised in profit or loss when they are incurred. Where a business combination not involving enterprises under common control is achieved in stages that involve multiple transactions, the cost of combination is the sum of the consideration paid at the acquisition date and the fair value at the acquisition date of the acquirer's previously held interest in the acquiree. The equity interest in the acquiree held before the acquisition date is remeasured at its fair value at the acquisition date, with any difference between its fair value and its carrying amount being recognised as investment income. The other comprehensive income of the acquiree before the acquisition date relating to the previously held interest in the acquiree is transferred to investment income.
The acquiree's identifiable assets, liabilities and contingent liabilities, acquired by the acquirer in a business combination, that meet the recognition criteria shall be measured at fair value at the acquisition date. Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the difference is treated as an asset and recognised as goodwill, which is measured at cost on initial recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognises the remaining difference immediately in profit or loss for the current period.
6、Preparation of Consolidated Financial Statements
6.1 Preparation of Consolidated Financial Statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its operating activities.
For a subsidiary disposed of by the Group, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
For a subsidiary acquired through a business combination not involving enterprises under common control, the operating results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate, and no adjustment is made to the opening balances and comparative figures in the consolidated financial statements.
No matter when the business combination occurs in the reporting period, subsidiaries acquired through a business combination involving enterprises under common control are included in the Group's scope of consolidation as if they had been included in the scope of consolidation from the date when they first came under the common control of the ultimate controlling party. Their operating results and cash flows from the beginning of the earliest reporting period are included in the consolidated income statement and consolidated statement of cash flows, as appropriate. The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the uniform accounting policies and accounting periods set out by the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the Company is treated as minority interests and presented as "minority interests" in the consolidated balance sheet within shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable to minority interests is presented as "minority interests" in the consolidated income statement below the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders' portion of the opening balance of owners' equity of the subsidiary, the excess amount are still allocated against minority interests.
Acquisition of minority interests or disposal of interest in a subsidiary that does not result in the loss of control over the subsidiary is accounted for as equity transactions. The carrying amounts of the Company's interests and minority interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the amount by which the minority interests are adjusted and the fair value of the consideration paid or received is adjusted to capital reserve under owners' equity. If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against retained earnings.
When the Group loses control over a subsidiary due to disposal of certain equity interest or other reasons, any retained interest is re-measured at its fair value at the date when control is lost. The difference between (i) the aggregate of the consideration received on disposal and the fair value of any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated from the acquisition date according to the original proportion of ownership interest is recognised as investment income in the period in which control is lost. Other comprehensive income associated with investment in the former subsidiary is reclassified to investment income in the period in which control is lost.
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 in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet date are recognised in profit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalisation are capitalised as part of the cost of the qualifying asset during the capitalisation period; (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 amortised cost) of available-for-sale monetary items are recognised as other comprehensive income and included in capital reserve.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange rate on the date the fair value is determined. Difference between the re-translated functional currency amount and the original functional currency amount is treated as changes in fair value (including changes of exchange rate) and is recognised in profit and loss or as other comprehensive income included in capital reserve.9、Financial Instruments
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. For financial assets and financial liabilities at fair value through profit or loss, transaction costs are immediately recognised in profit or loss. For other financial assets and financial liabilities, transaction costs are included in their initial recognised amounts.
9.1 Classification of Financial Instruments
On initial recognition, the Group's financial assets are classified into one of the four categories, including financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables, and available-for-sale financial assets. All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis.
9.2 Recognition and measurement of financial instruments
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 recognising the gains or losses on them on different bases; or (ii) The financial asset forms part of a group of financial assets or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis; (iii) Hybrid instruments associated with embedded derivatives and financial assets measured at fair value and of which changes are recorded into the profits and losses as specified in Accounting Standard for Business Enterprises No.22 - Financial Recognition and Measurement of Instruments.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value and any dividend or interest income earned on the financial assets are recognised in profit or loss.
9.2.2 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 amortised cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortisation is recognised in profit or loss
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 amortised cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortisation is recognised 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 recognised as other comprehensive income and included in the capital reserve, except that impairment losses and exchange differences related to amortised cost of monetary financial assets denominated in foreign currencies are recognised in profit or loss, until the financial assets are derecognised, at which time the gains or losses are released and recognised in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the available-for-sale financial assets are held, are recognised in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, and derivative financial assets that are linked to and must be settled by delivery of such unquoted equity instruments, are measured at cost 9.3 Recognition and measurement of financial assets transfer
The Group derecognises a financial asset if one of the following conditions is satisfied: (1) the contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; or (3) although the financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and it retains control of the financial asset, it recognises the financial asset to the extent of its continuing involvement in the transferred financial asset and recognises an associated liability. The extent of the Group's continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the transferred asset.
For a transfer of a financial asset in its entirety that satisfies the derecognition criteria, the difference between (1) the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from the transfer and any cumulative gain or loss that has been recognised in other comprehensive income is recognised in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognised and the part that is derecognised, based on the respective fair values of those parts. The difference between (1) the carrying amount allocated to the part derecognised; and (2) the sum of the consideration received for the part derecognised and any cumulative gain or loss allocated to the part derecognised which has been previously recognised in other comprehensive income, is recognised in profit or loss.
9.4 Derecognition of Financial Liabilities
The Group derecognises a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
When the Group derecognises a financial liability or a part of it, it recognises the difference between the carrying amount of the financial liability (or part of the financial liability) derecognised and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
9.5 Determination of Fair Value for Financial Assets and Financial Liabilities
For a financial instrument which has an active market, the Group uses the quoted price in the active market to establish its fair value. For a financial instrument which has no active market, the Group establishes fair value by using a valuation technique. Valuation techniques include using recent arm's length market transactions between knowledgeable, willing parties, reference to the current fair value of another instrument that is substantially the same, discounted cash flow analysis and option pricing models.
9.6 Impairment of FinancialAssets（excluding AccountsReceivables）
The Group assesses at each balance sheet date the carrying amounts of financial assets other than those at fair value through profit or loss. If there is objective evidence that a financial asset is
impaired, the Group determines the amount of any impairment loss. Objective evidence that a financial asset is impaired is evidence that, arising from one or more events that occurred after the initial recognition of the asset, the estimated future cash flows of the financial asset, which can be reliably measured, have been affected.
Objective evidence that a financial asset is impaired includes the following observable events: (1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal payments; (3) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial reorganisations; (5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer; (6) Upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in the estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. Such observable data includes: - Adverse changes in the payment status of borrower in the group of assets;
- Economic conditions in the country or region of the borrower which may lead to a failure to pay the group of assets;
(7) Significant adverse changes in the technological, market, economic or legal environment in which the issuer operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortised cost
If financial assets carried at amortised cost are impaired, the carrying amounts of the financial assets are reduced to the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset's original effective interest rate. The amount of reduction is recognised as an impairment loss in profit or loss. If, subsequent to the recognition of an impairment loss on financial assets carried at amortised cost, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognised, the previously recognised impairment loss is reversed. However, the reversal is made to the extent that the carrying amount of the financial asset at the date the impairment is reversed does not exceed what the amortised cost would have been had the impairment not been recognised.
For a financial asset that is individually significant, the Group assesses the asset individually for impairment. For a financial asset that is not individually significant, the Group assesses the asset individually for impairment or includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset (whether significant or not), it includes the asset in a group of financial assets with similar credit risk characteristics and collectively reassesses them for impairment. Assets for which an impairment loss is individually recognised are not included in a collective assessment of impairment.
- Impairment of available-for-sale financial assets
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value previously recognised directly in capital reserve is reclassified from the capital
reserve to profit or loss. The amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the acquisition cost (net of any principal repayment and amortisation) and the current fair value, less any impairment loss on that financial asset previously recognised in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognised, the previously recognised impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale equity instruments is recognised as other comprehensive income and included in the capital reserve, while the amount of reversal of impairment loss on available-for-sale debt instruments is recognised in profit or loss.
- Impairment of financial assets measured at cost
If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the carrying amount of the financial asset is reduced to the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. The amount of reduction is recognised as an impairment loss in profit or loss. The impairment loss on such financial asset is not reversed once it is recognised.
10、Recognition Criterion and Accruing Method of Bad Debt Provision for 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 similar creditrisk characteristics and collectively assesses them for impairment.Receivables for which an impairment loss is individuallyrecognised are not included in a collective assessment ofimpairment.|
|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:
||||||
|-|-|-|-|-|
|Name of the Portfolio||Accruing||Basis of bad Debt Provision|
|||Method|||
|Portfolio 1|No bad debtprovision||Receivables from government, petty cash advanced toemployees, security deposit, and receivables from relatedparties of the Company and its subsidiaries. Bad debtprovision is not recognised for such receivables since thepossibility of incurring bad debt losses is remote.||
|Portfolio 2|Based onpercentage ofaccounts||The Group classifies the receivables that are notindividually significant and those that are individuallysignificant but are not impaired individually into groups offinancial assets according to the similarity and relevance of||

|||
|-|-|
|balances|credit risk characteristics. These credit risks usually reflectthe debtors' ability to pay the amounts due at maturityunder contractual terms of related assets and are related tothe estimation of future cash flows of the assets subject toassessment.|

10.2.1 Portfolios that the aging schedule of total receivables outstanding is used for bad debt provision:
□Applicable√Not applicable
10.2.2 Portfolios that percentage of total receivables outstanding is used for bad debt provision:√Applicable□Not applicable
||||||
|-|-|-|-|-|
|||Provision as a proportionof accounts receivable (%)||Provision as a proportion|
||Name of portfolio||||
|||||of other receivables (%)|
|Based on percentage of accounts balances||1%|1%||

10.2.3 Portfolios that other method of total receivables outstanding is used for bad debt
provision:
□Applicable√Not applicable
10.3 Receivables that are not individually significant but for which bad debt provision is
individually assessed:
|||
|-|-|
|Reasons for making individual bad debtprovision|Significant difference between the carrying amount ofaccounts receivable and the present value of estimatedfuture cash flows|
|Bad debt provision methods|Standalone impairment test is carried out andimpairment losses are recognised based on thedifference between the carrying amount and thepresent value of estimated future cash 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 realisable value of inventories and provision methods for decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realisable value. If the net realisable value is below the cost of inventories, a provision for decline in value of inventories is made. Net realisable value is the estimated selling price in the ordinary course of business less the
estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes. Net
realisable value is determined on the basis of clear evidence obtained, and takes into consideration the
purposes of holding inventories and effect of post balance sheet events.
Provision for decline in value of inventories is made based on the excess of cost of inventory over its net realisable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realisable value of inventories is higher than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss for the period.
11.4 Inventory count system
The perpetual inventory system is maintained for stock system.
11.5 Amortization method of low-value consumables
Low-value consumables are amortized by way of one-time amortization method.
12. Long-term equity investments
12.1 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control, the investment cost of the long-term equity investment is the attributable share of the carrying amount of the shareholders' equity of the acquiree at the date of combination. For a long-term equity investment acquired through business combination not involving enterprises under common control, the investment cost of the long-term equity investment 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.
12.2 Subsequent measurement and recognition of profit or loss
12.2.1. Long-term equity investment accounted for using the cost method
For long-term equity investments over which the Group does not have joint control or significant influence and without quoted prices in an active market and that fair values cannot be reliably measured, the Group accounts for such long-term equity investments using the cost method. Besides, long-term equity investments in subsidiaries are accounted for using the cost method in the Company's separate financial statements. A subsidiary is an investee that is controlled by the Group.
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits already declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity investment, investment income is recognised in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
12.2.2. Long-term equity investment accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An associate is an entity over which the Group has significant influence and a joint venture is an entity over which the Group exercises joint control along with other investors.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost. Where the initial investment
cost is less than the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, the difference is recognised in profit or loss for the period, and the cost of the long-term equity investment is adjusted accordingly.
Under the equity method, the Group recognises its share of the net profit or loss of the investee for the period as investment income or loss for the period. The Group recognises its share of the investee's net profit or loss based on the fair value of the investee's individual separately identifiable assets, etc at the acquisition date after making appropriate adjustments to conform with the Group's accounting policies and accounting period. Unrealised profits or losses resulting from the Group's transactions with its associates and joint ventures are recognised as investment income or loss to the extent that those attributable to the Group's equity interest are eliminated. However, unrealised losses resulting from the Group's transactions with its associates and joint ventures which represent impairment losses on the transferred assets are not eliminated. Changes in owners' equity of the investee other than net profit or loss are correspondingly adjusted to the carrying amount of the long-term equity investment, and recognised as other comprehensive income which is included in the capital reserve.
The Group discontinues recognising its share of net losses of the investee after the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of its net investment in the investee is reduced to zero. If the Group has incurred obligations to assume additional losses of the investee, a provision is recognised according to the expected obligation, and recorded as investment loss for the period. Where net profits are subsequently made by the investee, the Group resumes recognising its share of those profits only after its share of the profits exceeds the share of losses previously not recognised. 12.3 Basis for determining joint control and significant influence over investee
Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating policy decisions relating to the activity require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. When determining whether an investing enterprise is able to exercise control or significant influence over an investee, the effect of potential voting rights of the investee (for example, warrants and convertible debts) held by the investing enterprises or other parties that are currently exercisable or convertible shall be considered.
12.4 Methods of impairment assessment and determining the provision for impairment losses The Group reviews the long-term equity investments at each balance sheet date to determine whether there is any indication that they have suffered an impairment loss. If an impairment indication exists, the recoverable amount is estimated. If such recoverable amount is less than its carrying amount, a provision for impairment losses in respect of the deficit is recognised in profit or loss for the period.
Once an impairment loss is recognised for a long-term equity investment, it will not be reversed in any subsequent period.
13. Investment properties
Investment property is property held to earn rentals or for capital appreciation or both. It includes a land use right that is leased out; a land use right held for transfer upon capital appreciation; and a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such investment property are included in the cost of the investment property if it is probable that economic benefits associated with an investment property will flow to the Group and the subsequent expenditures can be measured reliably. Other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment property, and adopts a depreciation or amortisation policy for the investment property which is consistent with that for buildings or land use rights.
The Group reviews the investment properties at each balance sheet date to determine whether there is any indication that they have suffered an impairment loss. If there is any indication that such assets may be impaired, the recoverable amounts are estimated for such assets. Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognised in profit or loss for the period.
Once an impairment loss is recognised for an investment property, it will not be reversed in any subsequent period.
When an investment property is sold, transferred, retired or damaged, the Group recognises the amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss for the period.
14、Fixed Asset
14.1 Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and have useful lives of more than one accounting year. A fixed asset is recognised only when it is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost and the effect of any expected costs of abandoning the asset at the end of its use is considered.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable that economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced part is derecognised. Other subsequent expenditures are recognised in profit or loss in the period in which they are incurred.
14.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method since the month subsequent to the one in which it is ready for intended use. The useful life, estimated net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
||||||||
|-|-|-|-|-|-|-|
|||||||Annual|
|||Depreciation period|||||
|Category||||Residual value rate (%)|||
|||||||depreciation rate|
|||(years)|||||
|||||||(%)|
|Buildings|5-50||5%、10%||1.8-19||
|Machinery and equipments|3-20||5%、10%||4.5-31.7||

|||||
|-|-|-|-|
|Transportation vehicles|3-14|5%、10%|6.4-31.7|
|Port facilities|50|5%|1.9|
|Fixed asset decorations|2-5||20-50|
|Office and other equipments|3-5|5%、10%|18-31.7|

 14.3 Methods of impairment assessment and determining the provision for impairment losses of fixed assets
The Group assesses at each balance sheet date whether there is any indication that the fixed assets may be impaired. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognised in profit or loss for the period.
Once the impairment loss of such assets is recognised, it is not be reversed in any subsequent period.
14.4 Other explanations
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least once at each financial year-end, and account for any change as a change in an accounting estimate.
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal, the fixed asset is derecognised. When a fixed asset is sold, transferred, retired or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and related taxes is recognised in profit or loss for the period.
15、Construction in process
15.1 Classification of construction in process
Construction in progress is measured at its actual costs. The actual costs include various construction expenditures during the construction period, borrowing costs capitalised before it is ready for intended use and other relevant costs. Construction in progress is not depreciated. 15.2Recognition criteria and time for Construction in process transferring to fixed assets Construction in progress is transferred to a fixed asset when it is ready for intended use.
15.3Methods of impairment assessment and determining the provision for impairment losses of Construction in process
The Group assesses at each balance sheet date whether there is any indication that construction in progress may be impaired. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognised in profit or loss for the period.
16、Borrowing costs
16.1 Rercognition Principle of capitalized Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are capitalised when expenditures for such asset and borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced capitalisation of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. If construction or production of assets qualifying capitalization is interrupted abnormally for a continuous 3-month-or-above period, the capitalization of borrowing costs should be ceased until the assets resume construction or production. Other borrowing costs are recognised as an expense in the period in which they are incurred.
16.2 Capitalization Duration
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.
16.3 Cease of Borrowing Costs Capitalized
Capitalisation of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. Other borrowing costs are recognised as an expense in the period in which they are incurred.
16.4 Measurement of Capitalized Borrowing Costs
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be capitalised is the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed under general-purpose borrowings, the Group determines the amount of interest to be capitalised on such borrowings by applying a capitalisation rate to the weighted average of the excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The capitalisation rate is the weighted average of the interest rates applicable to the general-purpose borrowings.
17、Intangible assets
17.1 Measurement of Intangible assets
An intangible asset is measured initially at cost. When an intangible asset with a finite useful life is available for use, its original cost less net residual value and any accumulated impairment losses is amortised over its estimated useful life using the straight-line method. An intangible asset with an indefinite useful life is not amortised.
For an intangible asset with a finite useful life, the Group reviews the useful life and amortisation method at the end of the period, and makes adjustments when necessary.
17.2 Methods of impairment assessment and determining the provision for impairment losses of intangible assets
The Group assesses at each balance sheet date whether there is any indication that the intangible assets with a finite useful life may be impaired. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognised in profit or loss for the period.
Intangible assets with indefinite useful life and intangible assets not yet available for use are
tested for impairment annually, irrespective of whether there is any indication that the assets may be impaired.
Once the impairment loss of such assets is recognised, it is not be reversed in any subsequent period.
18、Revenue
18.1 Recognition of Revenue from rendering of services
Revenue from rendering of services is recognised when (1) the amount of revenue can be measured reliably; (2) it is probable that the associated economic benefits will flow to the enterprise; (3) the stage of completion of the transaction can be determined reliably; and (4) the associated costs incurred or to be incurred can be measured reliably. Revenue from rendering of services is recognised using the percentage of completion method at the balance sheet date. The stage of completion of a transaction for rendering for services is determined based on services performed to date as a percentage of total services to be performed.
When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognised only to the extent of the costs incurred that will be recoverable, and the costs incurred are recognised as expenses for the period. When it is not probable that the costs incurred will be recovered, revenue is not recognised.
The revenue from Storage service for the Group will be recognized monthly according to the contract signed with clients.
19、Government grants
19.1 Classification of Government grants
Government grants are transfer of monetary assets and non-monetary assets from the government to the Group at no consideration. A government grant is recognised only when the Group can comply with the conditions attaching to the grant and the Group will receive the grant. If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable. Government grant should be divided into asset-related or income-related grant based on the nature specified in government document.
19.2 Accounting Treatment
A government grant related to an asset is recognised as deferred income, and evenly amortised to profit or loss over the useful life of the related asset.
For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred in subsequent periods, it is recognised as deferred income, and recognised in profit or loss over the periods in which the related costs are recognised. If the grant is a compensation for related expenses or losses already incurred, it is recognised immediately in profit or loss for the period.
20、Deferred Income Tax Assets/Deferred Income Tax Liabilities
20.1 Recognition of Deferred Income Tax Assets
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognised as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognised using the balance sheet liability method.
Deferred tax is generally recognised for all temporary differences. Deferred tax assets for deductible temporary differences are recognised to the extent that it is probable that taxable
profits will be available against which the deductible temporary differences can be utilised. However, for temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognised.
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the deductible losses and tax credits can be utilised.
Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
20.2 Recognition of Deferred Income Tax Liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognised as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognised using the balance sheet liability method.
21、Operating leases and finance leases
21.1 Accounting treatment of operating leases
Operating lease payments are recognised on a straight-line basis over the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for the period. Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are charged to profit or loss in the period in which they are actually incurred.
Rental income from operating leases is recognised in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs with more than an insignificant amount are capitalised when incurred, and are recognised in profit or loss on the same basis as rental income over the lease term. Other initial direct costs with an insignificant amount are charged to profit or loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the period in which they actually arise.
22、Changes in major accounting policies and assessment
□Applicable√Not applicable
23、Corrections of prior period errors
The Group has no corrections of prior period errors.
24、Other significant accounting policies, accounting estimates, and preparation of financial statements
24.1Employee benefits
In an accounting period in which an employee has rendered service to the Group, the Group recognises the employee benefits for that service as a liability, except for compensation for termination of employment relationship with the employees.
The Group participates in the employee social security systems, such as basic pensions, medical insurance, housing funds and other social securities established by the government in accordance with relevant requirements. The related expenditures are either included in cost of related assets or charged to profit or loss in the period when they are incurred.
When the Group terminates the employment relationship with employees before the expiry of the employment contracts or provides compensation as an offer to encourage employees to accept voluntary redundancy, if the Group has a formal plan for termination of employment relationship or has made an offer for voluntary redundancy which will be implemented immediately, and the Group cannot unilaterally withdraw from the termination plan or the redundancy offer, a provision for the compensation payable arising from the termination of employment relationship with employees is recognised with a corresponding charge to the profit or loss for the period.
24.2Exchange of non-monetary assets
If an exchange of non-monetary assets has commercial substance and the fair value of either the asset received or the asset given up can be reliably measured, the cost of the asset received is measured at the fair value of the asset given up (unless there is conclusive evidence that the fair value of the asset received is more reliable) plus any related taxes, and the difference between the fair value used and the carrying amount of the asset given up is recognised in profit or loss. If an exchange of non-monetary assets fails to meet the above conditions, the cost of the asset received is measured at the carrying amount of the asset given up plus any related taxes, and no gain or loss is recognised.
Where several assets are received at the same time in an exchange of non-monetary assets and if the exchange transaction has commercial substance and the fair values of the assets received can be measured reliably, the cost of each asset received is determined by apportioning the total cost of all assets received based on the proportion of the fair value of each asset received to the total fair value of all assets received. If the exchange transaction has no commercial substance, or although the transaction has commercial substance, the fair values of the assets received cannot be measured reliably, the cost of each asset received is determined by apportioning the total cost of all assets received based on the proportion of the original carrying amount of each asset received to the total carrying amount of all assets received.
Ⅴ、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%||
|Value-added tax ("VAT")|||||
||Taxable revenue from renderingservices, disposals of intangibleassets or properties||3% or 5%||
|Business tax|||||

||||
|-|-|-|
|City maintenance and|Actual payment for VAT andbusiness taxes|5% or 7%|
|construction tax|||
||Actual payment for VAT andbusiness taxes|3%|
|Education surcharge|||
|Enterprise income tax|Taxable income|25%|
||Revenues from taxable servicesprovided by small scale taxpayers|3%|
|Value-added tax ("VAT")|||
||Revenues from stack (storage),loading and unloading and portmanagement services provided bygeneral taxpayers|6%,11%|
|Value-added tax ("VAT")|||
||Actual occupation of land area|RMB1.5- 10.00/square meter|
|Land use tax|||
||70% to 90% of the original cost ofthe property or rental income|1.2% on bases of 70% to90% of the original cost ofthe property|
|Property tax|||

VI. BUSINESS COMBINATION AND CONSOLIDATED FINANCIAL STATEMENTS
1. Information of subsidiaries
(1)Subsidiaries established or acquired through investments
Currency: RMB
|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance of|||||||||||
||||||||||||||other items,||||||||||Amount of the minority|
|Name of thesubsidiary|Type||Place ofincorporation||Nature ofbusiness||Registeredcapital(10,000.||Businessscope||Actual capitalcontribution atthe end of theperiod(10,000.0||that insubstance,constitutesnet||Proportionof ownershipinterest (%)||Proportion ofvoting power(%)||Consolidated ornot consolidated||Minorityinterests(10,000.00Yuan)||interests used to absorbprofits or lossesattributable to minority|
|||||||00 Yuan)|||||0 Yuan)||investment inthe||||||||||interests(10,000.00Yuan)|
||||||||||||||subsidiary|||||||||||
|Baowan|Limited company|Shenzhen,Guangdong||Investment holdings||50,000||Investmentholdings||83,053||-||77.36||77.36||Yes||29,264.24||-||
|Holdings||||||||||||||||||||||||
|Shanghai|Limited company|Shanghai||Logisticsservice||16,000||Storage, stack||16,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Guangzhou|Limited company|Guangzhou,Guangdong||Logisticsservice||15,000||Storage, stack||15,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Kunshan|Limited company|Kunshan, Jiangsu||Logisticsservice||12,000||Storage, stack||12,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Tianjin|Limited company|Tianjin||Logisticsservice||15,000||Storage, stack||15,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Langfang|Limited company|Langfang, Hebei||Logisticsservice||9,000||Storage, stack||9,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Chengdu|Limited company|Chengdu, Sichuan||Logisticsservice||10,000||Storage, stack||10,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Longquan||||||||||||||||||||||||
|Baowan||||||||||||||||||||||||
|Chengdu|Limited company|Chengdu, Sichuan||Logisticsservice||6,000||Storage, stack||6,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Xindu Baowan.||||||||||||||||||||||||
|Nanjing|Limited company|Nanjing, Jiangsu||Logisticsservice||13,000||Storage, stack||13,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Bingang|Limited company|Tianjin||Logisticsservice||5,000||Storage, stack||5,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Nantong|Limited company|Nantong, Jiangsu||Logisticsservice||40,000||Storage, stack||40,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||

|||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||||||Balance of|||||||||||
||||||||||||||other items,||||||||||Amount of the minority|
|Name of thesubsidiary|Type|Place ofincorporation||Nature ofbusiness||Registeredcapital(10,000|.||Businessscope||Actual capitalcontribution atthe end of theperiod(10,000.0||that insubstance,constitutesnet||Proportionof ownershipinterest (%)||Proportion ofvoting power(%)||Consolidated ornot consolidated||Minorityinterests(10,000.00Yuan)||interests used to absorbprofits or lossesattributable to minority|
||||||00 Yuan)||||||0 Yuan)||investment inthe||||||||||interests(10,000.00Yuan)|
||||||||||||||subsidiary|||||||||||
|Wuhan|Limited company|Wuhan, Hubei|Logisticsservice||10,000|||Storage, stack||10,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Qingwu|Limited company|Tianjin|Logisticsservice||5,000|||Storage, stack||5,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Shenyang|Limited company|Shenyang,Liaoning|Logisticsservice||10,000|||Storage, stack||10,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
|Wuhan|Limited company|Wuhan|Logisticsservice||10,000|||Storage, stack||10,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Yangluo||||||||||||||||||||||||
|Baowan||||||||||||||||||||||||
|Feidong|Limited company|Anhui|Logisticsservice||10,000|||Storage, stack||10,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||
||Limited company|Shanxi|Logisticsservice||10,000|||Storage, stack||10,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Xi‟an Baowan||||||||||||||||||||||||
|Xianyang|Limited company|Shanxi|Logisticsservice||10,000|||Storage, stack||10,000||-||100.00||100.00||Yes||Not applicable||Not applicable||
|Baowan||||||||||||||||||||||||

(2) Subsidiaries acquired through a business combination involving enterprises under common control
||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||||Balance of|||||||||||
|||||||||||||Actual||||||||||||Amount of the|
|||||||||||||||other|||||||||||
|||||||||Registered||||capital||items, that||Proportion||||||Minority||minority interests|
|||||Place of||Nature of||||Business||contributi||in||||||||||used to absorb|
|Name of the subsidiary||Type||||||capital(10,||||on at the||substance,||ofownership||Proportionof voting||Consolidatedor not||interests(10,||profits or losses|
|||||incorporation||business||000.00||scope||end of the||constitutes||interest||power (%)||consolidated||000.00||attributable to|
|||||||||Yuan)||||period(10||net||(%)||||||Yuan)||minority|
|||||||||||||,000.00||investment||||||||||interests(10,000.00|
|||||||||||||Yuan)||in the||||||||||Yuan)|
|||||||||||||||subsidiary|||||||||||
||Limitedcompany||Shenzhen,Guangdong||Logisticsservice||3,441||Storage, stack||4,127||-||100.00||100.00||Yes||Notapplicable||Not applicable||
|Shenzhen Baowan|||||||||||||||||||||||||
||Limitedcompany||Shanghai||Logisticsservice||12,000||Storage, stack||10,667||-||100.00||100.00||Yes||Notapplicable||Not applicable||
|Mingjiang International.|||||||||||||||||||||||||

2、Explanation to changes in scope of consolidation
Feidong Baowan,Xi‟an Baowan and Xianyang Baowan are new subsidiaries incorporated by the Group this year and the scope of consolidation for this year is expanded accordingly.
3、Entities that are newly included in the scope of consolidation in the reporting period
Currency：RMB Yuan
||||
|-|-|-|
||Net assets at the end of the|Net profit for the current|
|Name of entity|||
||period|period|
|Feidong Baowan|99,957,383.12|-42,616.88|
|Xi‟an Baowan|31,988,593.03|-11,406.97|
|Xianyang Baowan|50,619,554.70|-20,445.30|

 VII. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1、Bank and Cash
Currency：RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening Balance|||
|Items|||||||
||Amount in|Exchange||Amount in|Exchange||
||||Amount in RMB|||Amount in RMB|
||Foreign Currency|Rate||Foreign Currency|Rate||
|Cash on Hand|--|--|19,043.47|--|--|17,305.49|
|RMB|--|--|15,001.53|--|--|13,971.13|
|HKD|391.75|8.42|3,298.10|391.75|8.42|3,298.10|
|EUR|946.12|0.79|743.84|46.12|0.79|36.26|
|Bank Deposit|--|--|156,146,422.56|--|--|233,310,375.37|
|RMB|--|--|155,655,206.60|--|--|232,820,749.34|
|USD|62,782.30|6.10|382,777.41|62,766.43|6.10|382,680.65|
|HKD|137,927.44|0.79|108,438.55|136,028.22|0.79|106,945.38|
|Other Monetary Fund|--|--||--|--|5,000.00|
|RMB|--|--||--|--|5,000.00|
|Total|--|--|156,165,466.03|--|--|233,332,680.86|

2、Dividend receivable
||||||||
|-|-|-|-|-|-|-|
||Opening|Current|Current|Closing|Reason for not|Whether or not|
|Items|||||||
||Balance|Increase|Decrease|balance|resumed|impairment|

||||||||
|-|-|-|-|-|-|-|
|Dividend|||||||
||48,000,000.00||48,000,000.00||||
|receivable within|||||||
|one year|||||||
|including：|--|--|--|--|--|--|
|CES|48,000,000.00||48,000,000.00||||
|Dividend|||||||
||--|--|--|--|--|--|
|receivable over|||||||
|one year|||||||
|including：|--|--|--|--|--|--|
|Total|48,000,000.00||48,000,000.00||--|--|

3、Interest receivable
Currency：RMB Yuan
||||||
|-|-|-|-|-|
|Items|Opening Balance|Current Increase|Current Decrease|Closing balance|
|Financing Product|4,797,363.01||4,797,363.01||
|Total|4,797,363.01||4,797,363.01||

4、Accounts Receivables
(1) Disclosure of accounts receivable by categories:
Currency: RMB Yuan
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Closing balance||||||||Opening balance|||||||
||||Carrying amount||||Bad debt provision||||Carrying amount||||Bad debt provision|||
||Category|||||||||||||||||
|||||P|roportion||||Proportion|Amount||P|roportion||||Proportion|
||||Amount||||Amount||||||||Amount|||
||||||(%)||||(%)||||(%)||||(%)|
|A|ccounts receivable for which bad debt provision has been assessed by portfolios|||||||||||||||||
|Aapa|ccruing bad debt provision|115,133,392.50||99.86%||559,191.88||0.49%||55,919,181.02||99.71%||559,191.88||1.00%||
||ccording to the|||||||||||||||||
||ercentage-of-receivables|||||||||||||||||
||pproach|||||||||||||||||
|S|ubtotal of portfolios|115,133,392.50||99.86%||559,191.88||0.49%||55,919,181.02||99.71%||559,191.88||1.00%||
|Aiwb|ccounts receivable that are not|164,138.37||0.14%||164,138.37||100.00%||164,138.37||0.29%||164,138.37||100.00%||
||ndividually significant but for|||||||||||||||||
||hich bad debt provision has|||||||||||||||||
||een assessed individually|||||||||||||||||
|T|otal|115,297,530.87||--||723,330.25||--||56,083,319.39||--||723,330.25||--||

Currency: RMB Yuan
|||||
|-|-|-|-|
|Portfolio|Carrying amount|Proportion (%)|Bad debt provision|
|Revenue from operating activity|115,133,392.50|0.49%|559,191.88|
|Total|115,133,392.50|--|559,191.88|

 In portfolio, accruing bad debt provision accounting to other approaches
□Applicable√Not Applicable
Accounts receivable that are not individually significant but for which bad debt provision has been assessed individually:
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|Item|Carrying amount|Bad debt provision|Proportion (%)|Reasons for accruing|
|Revenue from storage||||The customer‟s company|
||164,138.37|164,138.37|100.00%||
|activity||||was closed down.|
|Total|164,138.37|164,138.37|--|--|

（2）Reversals and collections during the current period:
||||||
|-|-|-|-|-|
|||Basis of determining theoriginal bad debt|Accumulated bad debt||
|Content of accounts|Reasons for reversals|||Amount of reversals or|
||||provision prior to||
|receivable|or collections|provision|reversals or collections|collections|
|Receivables due from||Based on percentage ofaccounts balances|||
||Cancelling stocks||91.02|9,102.71|
|business trading|||||
|Total|--|--|91.02|--|

（3） Receivables from shareholders that holding more than 5% (Inclusive) voting right during current reporting period
||||||
|-|-|-|-|-|
||Closing Balance||Opening Balance||
|Name of Company|||||
||Carrying amount|Bad debt provision|Carrying amount|Bad debt provision|
|Nanshan Group|807,992.52|0.00|0.00|0.00|
|Total|807,992.52|0.00|0.00|0.00|

 (4) Top five enterprises of accounts receivables
Currency：RMB Yuan
||||||
|-|-|-|-|-|
||Related with the|||Percentage of Total|
|Company||Amount|Age Limit||
||Group|||Receivables (%)|
|Shenzhen Weisheng|||||
||Unrelated party|36,633,236.55|within 6 months|31.97%|
|Offshore Oil|||||
|Technology Co.|||||
|Shenzhen Oilfield|||||
|Engineering|Unrelated party|22,963,351.96|Within 3 months|20.04%|
|Underwater|||||
|Technology Ltd|||||

||||||
|-|-|-|-|-|
|CNOOC|||||
||Unrelated party|6,037,973.44|within 6 months|5.27%|
|Limited-Huizhou|||||
|Operation Company|||||
|Newfield China|||||
|Newfield China|Unrelated party|4,143,371.88|Within 3 months|3.62%|
|LDC,NCL|||||
|China Oilfield|||||
|China Oilfield|||||
||Unrelated party|3,590,796.29|within 6 months|3.13%|
|Services Limited|||||
|-oiling|||||
|Total|--|73,368,730.12|--|64.03%|

（5）Receivables from related parties
Currency: RMB Yuan
|||||
|-|-|-|-|
||||Percentage of Total|
|Company|Relation with the Group|Amount||
||||Receivables (%)|
|CSE|Affiliated Company|366,883.87|0.32%|
|CPEC|Affiliated Company|528,692.99|0.46%|
|Shenzhen Nanshan Real||||
|Estate Development Ltd.|Related Party|31,327.80|0.03%|
|("Nanshan Real Estate||||
|Company")||||
|Nanshan Group|Parent Company|807,992.52|0.71%|
|Total|--|1,734,897.18|1.52%|

5、Other Receivables
(1) Disclosure of other receivables by categories:
Unit： RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening Balance||||
|Category|Carrying amount||Bad debt provision||Carrying amount||Bad debt provision||
||Amount|Proportion|Amount|Proportion(%)|Amount|Proportion (%)|Amount|Proportion|
|||(%)||||||(%)|
|Other receivables for which bad debt provision has been assessed by portfolios|||||||||
|Other receivables for which bad|||||||||
||53,767,680.88|87.43%|||55,671,924.14|90.20%|||
|debt provision has been assessed|||||||||
|by portfolios|||||||||
|Accruing bad debt provision|||||||||
||7,728,306.19|12.57%|60,466.39|0.78%|6,046,639.06|9.80%|60,466.39|1.00%|
|ccording to the|||||||||
|ercentage-of-receivables approach|||||||||
|Subtotal of portfolios|61,495,987.07|100.00%|60,466.39|0.10%|61,718,563.20|100.00%|60,466.39|0.66%|
|Other receivables that are not|61,495,987.07|--|60,466.39|--|61,718,563.20|--|60,466.39|--|
|ndividually significant but for|||||||||

||||||
|-|-|-|-|-|
|which bad debt provision has|||||
|een assessed individually|||||
|Total|53,767,680.88|87.43%|55,671,924.14|90.20%|

Other receivables that are significant in amount individually and provided for bad debt individually
□Applicable√Not Applicable
In portfolio, accruing bad debt provision accounting to aging analysis of other receivable:
□Applicable√Not Applicable
Inportfolio，accruing bad debt provision according to the percentage-of-receivablesapproach：
√Applicable□Not Applicable
Currency: RMB Yuan
|||||
|-|-|-|-|
|Portfolio|Carrying amount|Proportion (%)|Bad debt provision|
|Accruing bad debt provision||||
||7,728,306.19|0.78%|60,466.39|
|according to the||||
|percentage-of-receivables approach||||
|Total|7,728,306.19|--|60,466.39|

 In portfolio, accruing bad debt provision accounting to other approaches
□Applicable√Not Applicable
Other receivables that are not individually significant but for which bad debt provision has been assessed
individually:
□Applicable√Not Applicable
（3）Top five enterprises of other receivables
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Relation with the|||Percentage of Total|
|Company||Amount|Age Limit||
||Group|||Other Receivables (%)|
|Nanjing Lukou Airport|||||
||Unrelated party|42,552,880.00|1-2 years|69.20%|
|investment and|||||
|development Ltd.,Co.|||||
|Chongqing Xipeng|||||
||Unrelated party|6,000,000.00|Within 1 year|9.76%|
|industrial parks finance|||||
|office|||||
|Nantong Construction|||||
||Unrelated party|1,760,000.00|Within 1 year|2.86%|
|Project Management|||||
|Office|||||
|Nantong Gangzha|||||
||Unrelated party|1,346,672.00|Within 1 year|2.19%|
|district Finance Bureau|||||
|People's Government|||||
||Government agency|1,000,000.00|1-2 years|1.63%|
|of Wuhan Hannan|||||
|District|||||
|Total|--|52,659,552.00|--|85.64%|

(4) Other receivables from related parties
|||||
|-|-|-|-|
||||Percentage of Total|
|Company|Relation with the Group|Amount||
||||Receivables (%)|
|CPEC|Affiliated Company|22,741.77|0.04%|
|CSE|Affiliated Company|145,420.07|0.24%|
|Yahgee Company|Related Party|19,800.00|0.03%|
|Total|--|187,961.84|0.31%|

6、Prepayment
（1）Prepayment presented by aging
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Closing balanceAmount Percentage (%)||Opening balance||
|Aging|||||
|||Percentage (%)|Amount|Percentage (%)|
|Within 1 year|890,949.86|92.05%|458,172.03|82.94%|
|Over 3 years|76,992.07|7.95%|94,259.56|17.06%|
|Total|967,941.93|--|552,431.59|--|

7、Inventory
(1) Categories of inventories
Currency: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing Balance|||Opening Balance|||
|Items||Inventory|||Inventory||
||Book Balance|||Book Balance|||
|||Revaluation|||Revaluation||
|||Reserve|||Reserve||
|Raw materials|103,130.32||103,130.32|130,297.23||130,297.23|
|Maintenanceaccessories|||||||
||862,594.94||862,594.94|866,059.32||866,059.32|
|Total|965,725.26||965,725.26|996,356.55||996,356.55|

8、Other Current Assets
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Bank financing products|515,000,000.00|547,610,000.00|
|Total|515,000,000.00|547,610,000.00|

9、Investments in joint ventures and associates
Currency: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Proportion of|Proportion of||||||
||||Investee's total assets|Investee's total||||
|Name of investee|ownership|voting power|||Total net assets at the|Total operating|Net profit for the|
||interest held|in the investee|at the end of the|liabilities at the end||||
||||||end of the period|income for the period|period|
||by the Group|held by the|period|of the period||||
||(%)|Group (%)||||||
|Associates||||||||
||32.00%|32.00%|1,300,914,205.84|81,134,302.91|1,219,779,902.93|381,948,104.79|77,991,727.05|
|CSE||||||||
|Zhongkai Finance Co.,Ltd.|20.00%|20.00%|2,431,569,954.93|1,919,367,730.72|512,202,224.22|29,944,543.15|6,676,528.47|
|("Zhongkai Finance")||||||||
|(note)||||||||
||20.00%|20.00%|36,876,171.02|12,506,362.44|24,369,808.58|21,905,410.75|-3,952,461.05|
|CPEC||||||||

10、Long-term Equity Investment
（1）Details of long-term equity investments are as follows:
Currency: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Explanation of||||
|||||||||the||||
||||||||Proportion of|inconsistency|Provision for|||
|Investee|Accounting|Investment cost|Opening|Changes|Closing balance|Proportion ofownership||between the||Provision forimpairment|Cash dividends|
||||||||oting power in|proportion of|impairment|||
||method||balance|||vinterest in thet||||losses for the|for the period|
||||||||he investee (%)i|ownership|losses|||
|||||||investee (%)||nterest and the||period||
|||||||||proportion of||||
|||||||||voting power||||
|CSE E|quity method|79,488,000.00|369,433,367.09|24,957,352.66|394,390,719.75|32.00%|32.00%|||||
|CPEC E|quity method|3,312,000.00|5,715,189.15|-790,492.21|4,924,696.94|20.00%|20.00%|||||
|Zhongkai||||||||||||
|Finance|quity method|100,000,000.00|101,105,139.15|1,335,305.69|102,440,444.84|20.00%|20.00%|||||
|Co.,Ltd. E||||||||||||
|("Zhongkai||||||||||||
|Finance")||||||||||||
|Total|--|182,800,000.00|476,253,695.39|25,502,166.14|501,755,861.53|--|--|--||||

11、Investment Real Estate Investment properties
（1）Investment properties measured at cost
Currency： RMB Yuan
||||||
|-|-|-|-|-|
||Opening carrying|Increase in the|Decrease in the|Closing carrying|
|Item|||||
||amount|current period|current period|amount|
|I. Total original carrying amount|1,158,032,182.95|51,912,806.14||1,209,944,989.09|
|Housing& buildings|1,158,032,182.95|51,912,806.14||1,209,944,989.09|
|II. Total accumulated depreciation|||||
||253,815,727.55|17,648,592.88||271,464,320.43|
|and amortisation|||||
|Housing& buildings|253,815,727.55|17,648,592.88||271,464,320.43|
|III. Total net book value of|||||
||904,216,455.40|34,264,213.26||938,480,668.66|
|investment properties|||||

|||||
|-|-|-|-|
|Housing& buildings|904,216,455.40|34,264,213.26|938,480,668.66|
|IV. Total accumulated provision for||||
|impairment losses of investment||||
|properties||||
|Housing& buildings||||
|V. Total carrying amounts of||||
||904,216,455.40|34,264,213.26|938,480,668.66|
|investment properties||||
|. Housing& buildings|904,216,455.40|34,264,213.26|938,480,668.66|

Currency：RMB Yuan
|||
|-|-|
||Current Period|
|Total accumulated depreciation and amortisation|17,648,592.88|
|Accrued impairment for current period|0.00|

12、Fixed Assets
（1）Details of Fixed Assets
Currency：RMB Yuan
|||||||
|-|-|-|-|-|-|
||Opening carrying|||Decrease in the|Closing carrying|
|Item||Increase in the current period||||
||amount|||current period|amount|
|I. Total original carrying||||||
||781,526,661.99|33,418,679.86||493,091.30|814,452,250.55|
|amount||||||
|Including: Buildings|477,185,961.89|29,559,128.17|||506,745,090.06|
|Machinery and equipments|145,194,274.20|1,715,586.53|||146,909,860.73|
|Transportation vehicles|20,071,607.76|1,122,582.80||240,680.00|20,953,510.56|
|Port facilities|46,462,519.33||||46,462,519.33|
|Fixed assets decorations|13,767,664.19||||13,767,664.19|
|Office and other equipments|78,844,634.62|1,021,382.36||252,411.30|79,613,605.68|
||Opening carrying|Newly increased in|Provision in the|Decrease in the|Closing carrying|
||amount|the current period|current period|current period|amount|
|II. Total accumulated||||||
||265,148,207.53|6,131,718.89|13,563,413.43|465,916.13|284,377,423.72|
|depreciation||||||
|Including: Buildings|92,648,184.94|1,109,502.66|8,960,503.57||102,718,191.17|
|Machinery and equipments|67,384,689.08|3,162,617.31|2,645,207.95|228,646.00|72,963,868.34|
|Transportation vehicles|12,225,083.30|742,811.20|334,492.09||13,302,386.59|
|Port facilities|33,240,759.71|472,817.16|||33,713,576.87|

|||||||
|-|-|-|-|-|-|
|Fixed assets decorations|13,767,664.19||||13,767,664.19|
|Office and other equipments|45,881,826.31|643,970.56|1,623,209.82|237,270.13|47,911,736.56|
|III. Total net book value of||||||
||516,378,454.46|--|||530,074,826.83|
|fixed assets||||||
|Including: Buildings|384,537,776.95|--|||404,026,898.89|
|Machinery and equipments|77,809,585.12|--|||73,945,992.39|
|Transportation vehicles|7,846,524.46|--|||7,651,123.97|
|Port facilities|13,221,759.62|--|||12,748,942.46|
|Fixed assets decorations||--||||
|Office and other equipments|32,962,808.31|--|||31,701,869.12|
|IV．Total Provision for||||||
|||--||||
|impairment losses||||||
|Including: Buildings||--||||
|Machinery and equipments||--||||
|Transportation vehicles||--||||
|Port facilities||--||||
|Fixed assets decorations||--||||
|Office and other equipments||--||||
|V. Total carrying amount of|516,378,454.46||||530,074,826.83|
|||--||||
|fixed assets||||||
|Including: Buildings|384,537,776.95|--|||404,026,898.89|
|Machinery and equipments|77,809,585.12|--|||73,945,992.39|
|Transportation vehicles|7,846,524.46|--|||7,651,123.97|
|Port facilities|13,221,759.62|--|||12,748,942.46|
|Fixed assets decorations||--||||
|Office and other equipments|32,962,808.31|--|||31,701,869.12|

 In current period, accumulated depreciation is RMB 19,695,132.32 and the original cost of the fixed asset transferred from construction in progress is RMB 31,033,942.02
.（2）Fixed asset without obtain the certificate of title
||||
|-|-|-|
|Item|Reason for not obtain the certificate|Expected time of obtain the certificate|
||the land leased from Nanshan||
|Buildings||-|
||Group that not obtain the use||
||right certificate of the||

||||
|-|-|-|
||mentioned land||
||unfinished settlement||
|Buildings||End of 2014|
||procedures of the buildings||

13、Construction in progress
(1)Details of construction in progress are as follows:
Currency：RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item||Provision for|||Provision for||
||||Net carrying|||Net carrying|
||Carrying amount|||Carrying amount|||
|||impairment|||impairment||
||||amount|||amount|
|||losses|||losses||
|Longquan Baowan logistic park|||||||
||100,102.34||100,102.34|48,716,488.49||48,716,488.49|
|construction Ⅲ phase|||||||
|Guangzhou Baowan lot A|||||||
||290,729,036.19||290,729,036.19|199,349,637.54||199,349,637.54|
|logistic park construction|||||||
|Nanjing Baowan logistic park|||||||
||156,048,770.13||156,048,770.13|63,482,722.70||63,482,722.70|
|construction|||||||
|Bingang Baowan logistic park|||||||
||28,717,693.69||28,717,693.69|25,497,427.30||25,497,427.30|
|construction|||||||
|Wuhan Baowan logistic park|||||||
||69,614,426.73||69,614,426.73|22,084,639.62||22,084,639.62|
|construction|||||||
|Nantong Baowan logistic park|||||||
||58,850,957.03||58,850,957.03|9,040,855.12||9,040,855.12|
|construction|||||||
|Shenyang Baowan logistic park|||||||
||646,090.10||646,090.10|46,090.10||46,090.10|
|construction|||||||
|Xi‟an Baowan logistic park|||||||
||190,000.00||190,000.00||||
|construction|||||||
|Other miscellaneous constructions|5,025,792.75||5,025,792.75|7,900,598.15||7,900,598.15|
|Total|609,922,868.96||609,922,868.96|376,118,459.02||376,118,459.02|

(2) Changes to construction-in-progress project
Currency：RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount injected|||Including:||||
||||Increase in the|Transferred to fixed|||Construction||||Source of||
|Item name|Budget amount|Opening balance|||Transferred to|as a proportion of||Amount ofaccumulated|capitalised|Interest capitalisationrate for the period||Closing balance|
||||current period|assets|investment|budget amount|progress|capitalised interest|interest for the|(%)|funds||
||||||properties|(%)|||period||||
|Longquan|||||||||||||
||||||||||||Self-financing||
||319,070,000.00|48,716,488.49|31,973,617.55|80,590,003.70||100.00%|100%|13,918,583.84|2,331,950.25|40.16%||100,102.34|
|Baowan Ⅲ|||||||||||||
||||||||||||and||
|logistic park|||||||||||||
||||||||||||borrowings||
|construction|||||||||||||
|Guangzhou|||||||||||||
||||||||||||Self-financing||
|Baowan lot A|445,420,000.00|199,349,637.54|91,379,398.65|||65.27%|65.27%|6,605,056.20|2,979,927.92|92.10%||290,729,036.19|
||||||||||||and||
|logistic park|||||||||||||
||||||||||||borrowings||
|construction|||||||||||||
|Nanjing Baowan|||||||||||Self-financing||
||305,630,000.00|63,482,722.70|92,566,047.43|||51.06%|51.06%|1,620,914.83|1,230,776.56|99.64%||156,048,770.13|
|logistic park|||||||||||and||
|construction|||||||||||borrowings||
|Bingang Baowan|||||||||||Self-financing||
||343,600,000.00|25,497,427.30|3,220,266.39|||8.36%|8.36%|||||28,717,693.69|
|logistic park|||||||||||and||
|construction|||||||||||borrowings||
|Wuhan Baowan|||||||||||Self-financing||
||463,710,000.00|22,084,639.62|47,529,787.11|||15.01%|15.01%|1,353,645.93|1,273,921.48|100.00%||69,614,426.73|
|logistic park|||||||||||and||
|construction|||||||||||borrowings||
|Nantong Baowan|||||||||||Self-financing||
||341,040,000.00|9,040,855.12|49,810,101.91|||17.26%|17.26%|||||58,850,957.03|
|logistic park|||||||||||and||
|construction|||||||||||borrowings||
|Total|2,218,470,000.00|368,171,770.77|316,479,219.04|80,590,003.70||--|--|23,498,200.80|7,816,576.21|--|--|604,060,986.11|

（3）Schedule of construction-in-progress project
||||
|-|-|-|
|Item|Construction Schedule|Note|
|Longquan Baowan Ⅲ logistic|||
||Completed||
|park construction|||
||Four three-story warehouses, one business building||
|Guangzhou Baowan lot A|and subsidiary buildings with covered area of 133||
||thousand square metres. Warehouse A1 has been||
|logistic park construction|||
||finished, and the whole logistic park is expected to||
||be inspected entirely in September.||
|Nanjing Baowan logistic park|Seven warehouses and one complex building with||
|construction|covered area of 107 thousand square metres,||
||expected to be finished in August 2014.||
|Bingang Baowan logistic park|The ground treatment has been finished, and||
|construction|construction drawing design is in the process.||
|Wuhan Baowan logistic park|Eight warehouses and one complex building with||
|construction|covered area of 177 thousand square metres by two||
||stages， of which 140 thousand square metres for the||
||first stage, and expected to be finished in November.||
|Nantong Baowan logistic park|Four warehouses and two complex buildings with||
|construction|46.7 thousand square metres of which two||
||warehouses have been finished, and the other two||
||would be finished in August.||

14、Disposal of Fixed Assets
Currency： RMB Yuan
|||||
|-|-|-|-|
|Items|Opening Book Value|Closing Book Value|Reason for Disposal|
|Disposal of||||
||0.00|16,643.86|Due to scrap|
|Office and other||||
|equipments||||
|Total||16,643.86|--|

15、Intangible Assets
（1）Details of intangible assets
Currency： RMB Yuan
||||||
|-|-|-|-|-|
||Opening carrying|Increase in the current|Decrease in the current|Closing carrying|
|Item|||||
||amount|period|period|amount|
|I. Total original carrying|||||
||1,593,736,479.05||1,116,672.00|1,592,619,807.05|
|amount|||||
|Including: Land use rights|1,591,794,755.33||1,116,672.00|1,590,678,083.33|

||||||
|-|-|-|-|-|
|Trademarks|230,500.00|||230,500.00|
|Softwares|1,711,223.72|||1,711,223.72|
|II. Total accumulated|||||
||351,632,445.53|18,239,731.38||369,872,176.91|
|amortisation|||||
|Including: Land use rights|350,263,775.78|18,129,839.22||368,393,615.00|
|Trademarks|163,441.38|11,524.98||174,966.36|
|Softwares|1,205,228.37|98,367.18||1,303,595.55|
|III. Total net book value|||||
||1,242,104,033.52|-18,239,731.38|1,116,672.00|1,222,747,630.14|
|of intangible assets|||||
|Including: Land use rights|1,241,530,979.55|-18,129,839.22|1,116,672.00|1,222,284,468.33|
|Trademarks|67,058.62|-11,524.98||55,533.64|
|Softwares|505,995.35|-98,367.18||407,628.17|
|IV．Total Provision for|||||
|impairment losses|||||
|Including: Land use rights|||||
|Trademarks|||||
|Softwares|||||
|V. Total carrying amount of|1,242,104,033.52|||1,222,747,630.14|
|||-18,239,731.38|1,116,672.00||
|intangible assets|||||
|Including: Land use rights|1,241,530,979.55|-18,129,839.22|1,116,672.00|1,222,284,468.33|
|Trademarks|67,058.62|-11,524.98||55,533.64|
|Softwares|505,995.35|-98,367.18||407,628.17|

 Accumulated amortization for current period is RMB 18,239,731.38.
16、Deferred Tax Assets and Deferred Tax Liabilities
（1）Net balance of deferred tax assets and deferred tax liabilities shall not be offset
Details of recognized Deferred Tax Assets and Deferred Tax Liabilities
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Deferred Tax Assets：|||
|Impairment Provision|170,375.73|170,375.73|
|Preliminary Expenses|14,376,185.38|16,235,767.44|
|Deductible Loss|7,103.78|7,103.78|

||||
|-|-|-|
|Tangible Assets|14,553,664.89|16,413,246.95|
|Subtotal|170,375.73|170,375.73|
|Deferred Tax Liabilities|||
|Valuation of Tradable Financial Instruments|||
|and Financial Derivatives|||
|Changes in the Fair Value of Financial Assets|||
|Available for Sale included in Capital Reserve|||
|Total|||

Details of unrecognized deferred tax assets
Currency： RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Deductible Temporary Differences|102,293.71|102,293.71|
|Deductible Loss|||
|Total|102,293.71|102,293.71|

（2）Net balance of deferred tax assets and deferred tax liabilities shall be offset
Details of Deferred Tax Assets and Deferred Tax Liabilities after offset mutually
Currency： RMB Yuan
||||||
|-|-|-|-|-|
||Deferred Tax||Deferred Tax||
|||Deductible or||Deductible or|
||Assets or||Assets or||
|||Taxable Temporary||Taxable Temporary|
||Deferred Tax||Deferred Tax||
|Item||Differences after||Differences after|
||Liabilities after||Liabilities after||
|||offset mutually at||offset mutually at|
||offset mutually at||offset mutually at||
|||the end of the||the beginning of|
||the end of the||the beginning of||
|||period||the period|
||period||the period||
|Deferred Tax Assets|14,553,664.89|58,214,659.56|16,413,246.95|65,652,987.80|

17、Details of Assets Impairment Provision
Currency： RMB Yuan
|||||||
|-|-|-|-|-|-|
||||Decrease in the current period|||
||Opening carrying|Increase in the|||Closing carrying|
|Item|||Reversals|Write-off||
||amount|current period|||amount|
|I、Allowance for Bad Debts|783,796.64||||783,796.64|
|II、Provision for Inventory|0.00||||0.00|
|III、Provision for||||||
|Available-for-sale||||||
|Financial Assets||||||

||||
|-|-|-|
|IV、Impairment for|||
|Held-to-maturity|||
|Investments|||
|V、Impairment for|||
|long-term equity|||
|investment|||
|VI、Impairment for Real|||
|Estate|||
|VII、Impairment for Fixed|||
|Assets|||
|VIII、 Impairment for|||
|Material holds for|||
|construction of fixed assets|||
|IX、Impairment for|0.00|0.00|
|construction in progress|||
|X、Impairment for|||
|Capitalized Biological|||
|Assets|||
|Incl：Impairment for|||
|Mature Capitalized|||
|Biological Assets|||
|XI、Impairment for Oil and|||
|Gas Assets|||
|XII、Impairment for|||
|intangible assets|||
|XIII、Impairment for|||
|Goodwill|||
|XIV、Other Impairments|||
|Total|783,796.64|783,796.64|

18、Other Non-current Assets
Currency： RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Prepayments for construction|20,547,841.32|16,688,269.48|
|Prepayment for land-use right|144,310,164.44||
|Others|1,011,977.29|585,092.78|

||||
|-|-|-|
|Total|165,869,983.05|17,273,362.26|

19、Accounts Payable
(1) Details of accounts payable are as follows:
Currency: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Rents|13,127,076.06|6,132,919.30|
|Allowances for repairs and maintenance|573,467.29|1,486,193.95|
|Service charges|146,184.64|335,614.64|
|Others|1,896,702.22|2,674,963.13|
|Total|15,743,430.21|10,629,691.02|

（2）Accounts payable due to shareholders holding at least5% of the Company's shares with voting power
Currency: RMB Yuan
||||
|-|-|-|
|Name of Company|Closing balance|Opening balance|
|Nanshan Group|7,008,201.06|6,132,919.30|
|Total|7,008,201.06|6,132,919.30|

20、Receipts in advance
(1)Details of receipts in advance are as follows:
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Storage service fees collected in advance|5,834,932.27||6,057,344.09||
|Others|8,640.68||72,809.17||
|Total|5,843,572.95||6,130,153.26||

21、Accrued Payroll Employee benefits payable
Currency: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Opening carrying||Increase in the||Decrease in the||Closing carrying|
|Item|||||||||
|||amount||current period||current period||amount|
|I. Wages or salaries, bonuses,|28,257,711.80||35,821,303.78||44,799,158.45||19,279,857.13||
|allowances and subsidies|||||||||
|II. Staff welfare|||486,697.09||486,697.09||||
|III. Social security contributions|21,377.55||5,069,803.36||5,067,396.17||23,784.74||

||||||
|-|-|-|-|-|
|Including: Basic medical|5,378.00|1,123,753.90|1,123,191.82|5,940.08|
|insurance|||||
|Complementary||151,511.91|151,511.91||
|medical insurance|||||
|Basic endowment|13,445.00|2,448,552.80|2,446,950.32|15,047.48|
|insurance|||||
|Annuities||996,173.96|996,153.96|20.00|
|Unemployment|672.25|127,865.46|127,793.56|744.15|
|insurance|||||
|Work-related injury|1,210.05|137,771.43|137,674.52|1,306.96|
|insurance|||||
|Birth insurance|672.25|84,173.90|84,120.08|726.07|
|IV. Housing funds||1,301,133.30|1,300,685.82|447.48|
|V. Retire benefits|||||
|VI. Others|894,561.42|1,291,987.77|725,452.77|1,461,096.42|
|Total|29,173,650.77|43,970,925.30|52,379,390.30|20,765,185.77|

 There are no arrears in the employee benefits payable.
Expenditure for trade union and employee training is RMB 1,461,096.42. No non-monetary welfare and
compensation for severing labor relation.
22、Taxes payable
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Value Added Tax|2,803,968.50|2,446,581.15|
|Business Tax|132,372.45|200,492.21|
|Corporate Income Tax|24,765,569.15|39,565,976.92|
|Individual Income Tax|1,225,264.08|123,847.43|
|Urban Maintenance & Construction Tax|191,930.27|180,087.09|
|Land-use Tax|3,384,872.98|2,739,395.77|
|Property Tax|1,260,876.19|1,961,612.84|
|Educational Surcharges|155,663.57|144,748.77|
|Others|192,444.61|459,065.85|
|Total|34,112,961.80|47,821,808.03|

23、Interest Payable
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Interest for Straight Long-term Loans|29,418,083.35|7,555,242.57|
|Interest for Corporate bond interest|23,677,422.85|20,784,237.20|
|Total|53,095,506.20|28,339,479.77|

24、Other Payables
(1)Details of other payables are as follows:
Currency: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Construction costs|283,408,249.52|169,060,501.22|
|Deposits|44,557,527.11|39,982,668.98|
|Others|17,030,862.43|26,771,084.77|
|Total|344,996,639.06|235,814,254.97|

(2）Other payables due to shareholders holding at least5% of the Company's shares with voting power
Currency: RMB Yuan
||||
|-|-|-|
|Name of Company|Closing balance|Opening balance|
|Nanshan Group|8,277,200.51|8,201,702.79|
|Total|8,277,200.51|8,201,702.79|

 (3) Details of other payables in large amount over 1 year
Other payables in large amount over one year mainly are the construction balance and quality warranty deposits that have not met the conditions of payment.
25、Non-current liabilities due within one year
（1）Details of non-current liabilities due within one year
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Long-term Loans due within 1 year|309,400,000.00|309,700,000.00|
|Long-term Payables due within 1 year|1,349,351.16|1,349,351.16|
|Total|310,749,351.16|311,049,351.16|

（2）Long-term borrowings due within 1 year
Details of Long-term borrowings due within 1 year
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Credit loan|159,410,000.00|159,600,000.00|
|Guaranteed loan|149,990,000.00|150,100,000.00|
|Total|309,400,000.00|309,700,000.00|

 Top five of the long-term borrowings due within 1 year
Currency: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Closing balance||Opening balance||
|Lender|Inception date of|Maturity date|Currency|Interest rate (%)|||||
||||||Amount in foreign|Amount in|Amount in foreign|Amount in|
||borrowing||||||||
||||||currency|domestic currency|currency|domestic currency|
|Bank of China Co.,||||||149,900,000.||159,600,000.|
||2009-11-10|2014-11-10|RMB|5.18%|||||
|Ltd. Shenzhen|||||||||
|||||||00||00|
|Branch|||||||||
|China Merchants|||||||||
|||||||159,500,000.||150,100,000.|
|Bank Co., Ltd.|2009-08-21|2014-08-21|RMB|5.18%|||||
|Shenzhen Chiwan||||||00||00|
|Branch|||||||||
|||||||309,400,000.||309,700,000.|
|Total|--|--|--|--|--||--||
|||||||00||00|

26、Long-term Borrowings
（1）Classification of the long-term loans
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Guaranteed loan|220,393,485.34|165,048,306.62|
|Credit loan|45,325,550.91|20,395,341.34|
|Total|265,719,036.25|185,443,647.96|

（2）Top Five of the long-term loans
Currency: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||Closing balance||Opening balance||
||Inception date of||||Amount in foreign|Amount in domestic|Amount in|Amount in|
|Lender||Maturity date|Currency|Interest rate (%)|||||
||borrowing||||currency|currency|foreign currency|domestic currency|
|China|||||||||
|Development|31/03/2012|28/03/2027|RMB|6.55%||126,019,651.23||126,019,651.23|
|Bank Corporation|||||||||
|Shenzhen Branch|||||||||
|China|||||||||
|Development|13/09/2012|13/09/2027|RMB|6.55%||52,769,161.11||39,028,655.39|
|Bank Corporation|||||||||
|Shenzhen Branch|||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Bank of China|||||||||
||13/09/2013|13/09/2018|RMB|6.08%||45,325,551.00||20,395,341.34|
|Limited Shenzhen|||||||||
|Branch|||||||||
|China|||||||||
|Development|22/04/2014|22/04/2029|RMB|6.88%||24,330,730.91|||
|Bank Corporation|||||||||
|Shenzhen Branch|||||||||
|China|||||||||
|Development|29/05/2014|29/05/2029|RMB|6.88%||17,273,942.00|||
|Bank Corporation|||||||||
|Shenzhen Branch|||||||||
|Total|--|--|--|--|--|265,719,036.25|--|185,443,647.96|

27、Bonds payable
Currency: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||Opening|Accrued|Interest paid|||
||||Maturity|Issued amount||||Closing interest||
|Name of bond|Par value|Issue date|||interest|interest for|during the||Closing balance|
||||term||payable|the period|period|payable||
|Medium term note|400,000,000.00|09/03/2012|5 years|400,000,000.00|19,594,520.53|11,243,835.62|24,000,000.00|6,838,356.15|400,000,000.0|
|Corporate bond|570,000,000.00|19/12/2012|7 years|570,000,000.00|1,189,716.67|15,649,350.03||16,839,066.70|563,454,500.0|

28、 Long-term Payables
(1) Top Five Long-term Payables
Currency: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Interest Rate|Accrued|Closing||
|Company|Duration|Initial Amount||||Condition|
||||（%）|Interest|Balance||
|Nanshan Group|No fixed date|212,011,691.49||7,953,521.76|212,011,691.49||

29、Other Non-current Liabilities
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Book Balance|Opening Book Balance|
|Advanced rental receipts|18,391,585.08|19,066,260.66|
|Medium and long-term Loans from Nanshan Group|700,000,000.00|700,000,000.00|
|Total|718,391,585.08|719,066,260.66|

30、Share Capital
Currency: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Changes for Current Period（＋、－）||||||
|Opening|||||||
||||capitalization|||Closing Balance|
|Balance|New Issued|Bonus Share||Others|Subtotal||
||||of surplus||||
||||reserves||||

||||
|-|-|-|
|Total Shares|230,600,000.00|230,600,000.00|

31、Special reserve
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in the|Decrease in the||
|Item|Opening balance|||Closing balance|
|||period|period||
|Production safety fee|2,622,730.81|1,200,538.14|389,052.62|3,434,216.33|

32、Capital reserve
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||||Decrease in the||
|Item|Opening balance|Increase in the period||Closing balance|
||||period||
|Capital premium|124,868,225.67|0.00|0.00|124,868,225.67|
|Other capital reserve|109,272,960.42|0.00|0.00|109,272,960.42|
|Total|234,141,186.09|||234,141,186.09|

33、Surplus Reserves
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase for|Decrease for||
|Items|Opening Balance|||Closing Balance|
|||current period|current period||
|Statutory Surplus Reserve|200,980,383.36|||200,980,383.36|
|Discretionary Surplus Reserve|83,704,364.36|7,511,659.85||91,216,024.21|
|Total|284,684,747.72|7,511,659.85||292,196,407.57|

34、Unappropriated profits
Currency: RMB Yuan
||||
|-|-|-|
|||Percentage for|
|Item|Amount||
|||withdrawal or|
|||distribution (%)|
|Before adjustment: Unappropriated profits at the end of prior year|720,937,883.66|--|
|Adjustment: Total unappropriated profits at beginning of year||--|
|After adjustment: Unappropriated profits at beginning of year|720,937,883.66|--|
|Add: Net profit attributable to owners of the Company for the period|119,725,120.29|--|
|Less:Appropriation to statutory surplus reserve|7,511,659.85||
|Appropriation to discretionary surplus reserve|||

||||
|-|-|-|
|Appropriation to General Risk Preparation|||
|Declaration of dividends on ordinary shares|||
|Declaration of dividends on ordinary shares turn to capital|||
|Unappropriated profits at the end of the year|833,151,344.10|--|

35、Operating income and operating costs
（1）Details of Operating Revenues and Operating Costs
Currency: RMB Yuan
||||
|-|-|-|
||Amount recognised in the|Amount recognised in the prior|
|Items|||
||current period|period|
|Principal operating income|350,262,650.64|324,912,703.97|
|Other operating income|9,327.00|1,630.00|
|Operating costs|120,852,155.43|112,798,866.77|

（2）Operating activities (classified by industries)
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Amount recognised in the current period||Amount recognised in the prior period||
|Name of industry|Operating income|Operating costs|Operating income|Operating costs|
|Stack (storage)|217,366,481.92|78,265,066.50|214,812,549.85|74,229,205.97|
|Loading and unloading|70,289,085.35|20,875,744.27|47,404,593.83|18,239,947.61|
|Port management|34,144,921.98|7,668,823.62|35,033,521.05|6,446,336.68|
|Office leasing and others|28,462,161.39|14,042,521.04|27,662,039.24|13,883,376.51|
|Total|350,262,650.64|120,852,155.43|324,912,703.97|112,798,866.77|

(3）Operating activities (classified by products)
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Amount recognised in the current period||Amount recognised in the prior period||
|Name of Product|Operating income|Operating costs|Operating income|Operating costs|
|Stack (storage)|217,366,481.92|78,265,066.50|214,812,549.85|74,229,205.97|
|Loading and unloading|70,289,085.35|20,875,744.27|47,404,593.83|18,239,947.61|
|Port management|34,144,921.98|7,668,823.62|35,033,521.05|6,446,336.68|
|Office leasing and others|28,462,161.39|14,042,521.04|27,662,039.24|13,883,376.51|

||||||
|-|-|-|-|-|
|Total|350,262,650.64|120,852,155.43|324,912,703.97|112,798,866.77|

（4）Operating activities (classified by regions)
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Amount recognised in the current period||Amount recognised in the prior period||
|Region|||||
||Operating income|Operating costs|Operating income|Operating costs|
|South China|184,276,440.94|69,933,465.04|169,621,327.09|63,333,728.18|
|East China|96,550,216.72|25,307,604.84|88,315,789.10|25,189,407.71|
|North China|41,558,277.81|14,017,703.04|42,279,749.14|13,249,258.76|
|Southwest China|27,877,715.17|11,593,382.51|24,695,838.64|11,026,472.12|
|Total|350,262,650.64|120,852,155.43|324,912,703.97|112,798,866.77|

（5）Operating income from the Group's top five customers
Currency: RMB Yuan
||||
|-|-|-|
|||Proportion to|
|Customer|Operating income|total operatingincome of the|
|||Group (%)|
|COOEC Subsea Technology Co., Ltd.|36,425,314.06|10.40%|
|Shenzhen Weisheng Offshore Oil Technology Co., Ltd.|34,560,087.08|9.87%|
|Volkswagen Automobile Sales Co.,Ltd.|16,672,167.60|4.76%|
|LF Logistics (China) Co., Ltd.|15,289,565.31|4.37%|
|Guangzhou Fengshen Logistics Co.,Ltd.|12,614,537.42|3.60%|
|Total|115,561,671.47|33.00%|

36、Business Tax and Surcharges
Currency: RMB Yuan
|||||
|-|-|-|-|
||Amount incurred in|Amount incurred in||
|Item|||Basis of calculation|
||the current period|the prior period||
|Business tax|1,560,398.76|3,168,150.53|5%, 3%|
|City construction and||||
||762,336.26|951,117.03|5%, 7%|
|maintenance tax||||
|Education surcharges|666,535.43|670,827.72|3%|
|Property tax|6,921,907.68|7,173,379.36|1.2% on bases of 70% to 90% of|

|||||
|-|-|-|-|
||||the original cost of the property|
|Land use tax|3,487,958.08|3,425,589.29|RMB1.5- 10/square meter|
|Others|252,532.82|101,147.54||
|Total|13,651,669.03|15,490,211.47|--|

37、Selling expenses
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|||Amount incurred in the||Amount incurred in the prior|
|Item|||||
|||current period||period|
|Others|34,889.70||43,267.18||
|Total|34,889.70||43,267.18||

38、Administrative Expenses
Currency: RMB Yuan
||||
|-|-|-|
||Amount incurred in the current||
|Item||Amount incurred in the prior period|
||period||
|Payroll|22,352,425.00|21,658,213.05|
|Asset depreciation|2,228,749.00|2,360,625.78|
|Asset amortisation|4,416,975.00|2,258,978.31|
|Taxes|2,924,456.00|2,131,478.49|
|Business entertainment|1,005,233.00|917,972.15|
|Vehicle expense|724,165.00|733,698.21|
|Travelling expense|958,184.00|825,530.80|
|Board of directors fee|533,309.00|415,922.94|
|Others|4,574,247.31|4,128,892.17|
|Total|39,717,743.31|35,431,311.90|

39、Financial Expenses
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the prior period|
|Interest expenses|70,031,639.10|72,570,908.57|
|Less: interest income|688,037.61|3,787,986.64|

||||
|-|-|-|
|Less: capitalised interest|||
||7,816,576.21||
|expenses|||
|Exchange losses|1,721.35|335.26|
|Less: exchange gains|||
|Others|1,968,521.76|1,967,577.47|
|Total|63,497,268.39|70,750,834.66|

40、Investment income
(1)Details of investment income
Currency: RMB Yuan
||||
|-|-|-|
||Amount||
|||Amount recognised in|
||recognised in the||
|Item||the prior period|
||current period||
|Income from long-term equity investments under equity method|25,502,166.14|24,385,334.51|
|Others|12,567,232.36|10,540,602.61|
|Total|38,069,398.50|34,925,937.12|

 (2) Income from long-term equity investments under equity method
Currency: RMB Yuan
|||||
|-|-|-|-|
||||Reasons for increase or decrease in|
||Amount recognised in the|Amount recognised in the||
|Investee||||
||||the current period compared to the|
||current period|prior period||
||||prior period|
||||Changes of net profits gained by|
|CSE|24,957,352.66|24,182,821.83||
||||the investee in the current period|
||||Changes of net profits gained by|
|CPEC|-790,492.21|202,512.68||
||||the investee in the current period|
|Zhongkai Finance|1,335,305.69|||
|Total|25,502,166.14|24,385,334.51|--|

41、Non-operating Income
（1）Details of non-operating income are as follows:
Currency: RMB Yuan
|||||
|-|-|-|-|
||||Amount included in|
||Amount recognised in|Amount recognised in||
|Item||||
||||non-recurring profit or|
||the current period|the prior period||
||||loss for the period|
|Total gains on disposal of non-current assets|136,399.46|335,274.80|136,399.46|
|Including: Gains on disposal of fixed assets|136,399.46|335,274.80|136,399.46|

|||||
|-|-|-|-|
|Government grants|4,060,913.02|2,043,800.00|4,060,913.02|
|Penalty gains on breach of contract|1,711,793.94||1,711,793.94|
|Others|50,104.10|226,804.17|50,104.10|
|Total|5,959,210.52|2,605,878.97|5,959,210.52|

（2）Details of government grants:
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Amount recognised|Amount recognised|Related to|Whether non-recurring|
|Item|||||
||in the current period|in the prior period|assets/income|profit or loss|
|Governmental subsidies|3,114,013.02|2,011,800.00|Related to income|Yes|
|Financial rewards|946,900.00|32,000.00|Related to income|Yes|
|Total|4,060,913.02|2,043,800.00|--||

42、Non-operating Expenses
Currency: RMB Yuan
|||||
|-|-|-|-|
||||Amount included in|
||Amount incurred in the|Amount incurred in the||
|Item||||
||||non-recurring profit or|
||current period|prior period||
||||loss for the period|
|Total losses on disposal of non-current assets|6,736.19||6,736.19|
|Including: Losses on disposal of fixed assets|6,736.19||6,736.19|
|Donations to third parties|30,000.00||30,000.00|
|Inventory losses|840.16||840.16|
|Penalty losses|1,165.99|950.00|1,165.99|
|Others|-161,352.66|9,886.15|-161,352.66|
|Total|-122,610.32|10,836.15|-122,610.32|

43、Income Tax Expenses
Currency: RMB Yuan
||||
|-|-|-|
||Amount incurred in the|Amount incurred in the|
|Item|||
||current period|prior period|
|Current tax expense calculated according to tax laws and relevant|21,300,115.84|17,746,280.27|
|requirements|||
|Adjustments to deferred tax|1,404,434.20|1,192,724.53|
|Total|22,704,550.04|18,939,004.80|

44、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:
Currency: RMB Yuan
||||
|-|-|-|
||Amount for the current period|Amount for the prior period|
|Net profit for the current period attributable to ordinary|119,725,120.29|97,688,879.23|
|shareholders|||
|Including: Net profit from continuing operations|119,725,120.29|97,688,879.23|
|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:
Currency: RMB Yuan
||||
|-|-|-|
||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 year|230,600,000.00|230,600,000.00|

 Earnings per share
Currency: RMB Yuan
||||
|-|-|-|
||Amount for the currentperiod|Amount for the prior|
|||period|
|Calculated based on net profit attributable to shareholders of the|||
|Company:|||
|Basic earnings per share|0.52|0.42|
|Diluted earnings per share|0.52|0.42|
|Calculated based on net profit from continuing operations|||
|attributable to shareholders of the Company:|||
|Basic earnings per share|0.52|0.42|
|Diluted earnings per share|0.52|0.42|

45、Notes to items in the cash flow statement
(1) Other cash receipts relating to operating activities
Currency: RMB Yuan
Item Amount for the current period
|||
|-|-|
|Other cash receipts relating to operating activities|10,563,830.00|
|Interest income|686,731.42|
|Government grants|4,063,913.02|
|Total|15,314,474.44|

（2）Other cash payments relating to operating activities
Currency: RMB Yuan
|||
|-|-|
|Item|Amount for the current period|
|Payments for administrative expense|10,643,103.24|
|Payments for deposits|4,680,740.68|
|Others|1,699,327.35|
|Total|17,023,171.27|

（3）Other cash receipts relating to investing activities
Currency: RMB Yuan
|||
|-|-|
|Item|Amount for the current period|
|Principal and investment income from financing products|1,638,964,595.37|
|Total|1,638,964,595.37|

（4）Other cash payments relating to investing activities
Currency: RMB Yuan
|||
|-|-|
|Item|Amount for the current period|
|Purchase of financing products|1,588,990,000.00|
|Total|1,588,990,000.00|

（5）Other cash receipts relating to financing activities
Currency: RMB Yuan
|||
|-|-|
|Item|Amount for the current period|

(6) Other cash payments relating to financing activities
Currency: RMB Yuan
|||
|-|-|
|Item|Amount for the current period|
|Payments for commission of medium term note|1,200,000.00|
|Payments for security cost of corporate bond|2,280,000.00|

|||
|-|-|
|Others|1,200.00|
|Total|3,481,200.00|

46、Supplementary information for the cash flow statement
（1）Details of Supplementary information for the cash flow statement
Currency: RMB Yuan
||||
|-|-|-|
|Supplementary information|Current period|Perior period|
|1. Reconciliation of net profit to cash flow from operating activities:|--|--|
|Net profit|133,964,921.08|108,981,817.13|
|Depreciation of fixed assets, depletion of oil & gas assets and productive|||
||37,340,101.92|38,282,378.64|
|biologic material depreciation|||
|Amortisation of intangible assets|18,239,731.38|16,081,735.08|
|Gains on disposal of fixed assets, intangible assets and other long-term|||
||-128,823.11|-331,735.10|
|assets(„-‟ for gain)|||
|Financial expenses(gains are indicated by "-")|61,743,557.78|74,658,755.08|
|Losses arising from investments (gains are indicated by "-")|-38,069,398.50|-34,925,937.12|
|Decrease in deferred tax assets (increase is indicated by "-")|1,859,582.06|2,512,690.51|
|Decrease in inventories (increase is indicated by "-")|30,631.29|25,466.01|
|Decrease in receivables from operating activities (increase is indicated by "-")|-61,130,264.14|-11,664,695.85|
|Increase in payables from operating activities (decrease is indicated by "-")|-17,290,152.35|-413,354.24|
|Net cash flow from operating activities|136,559,887.41|193,207,120.14|
|2．Significant investment and financing activities not involving receipts and|||
||--|--|
|disbursements:|||
|3．Net changes in cash and cash equivalents:|--|--|
|Closing balance of cash|156,165,466.03|426,525,784.88|
|Less: Opening balance of cash|233,332,680.86|893,354,140.32|
|Net increase in cash and cash equivalents|-77,167,214.83|-466,828,355.44|

 (2) Composition of cash and cash equivalents
Currency: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|156,165,466.03|233,332,680.86|

||||
|-|-|-|
|Including: Cash on hand|19,043.47|17,305.49|
|Bank deposit available for immediate payment|156,146,422.56|233,310,375.37|
|Other monetary funds available for immediate|||
|||5,000.00|
|payment|||
|Deposit in central bank available for payment|||
|Deposit from other banks|||
|Call loan from other Banks|||
|II. Cash equivalents|||
|Including: Investments in debt securities due|||
|within three months|||
|III. Closing balance of cash and cash equivalents|156,165,466.03|233,332,680.86|

 VIII. RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1、Basic information of theCompany‟s parent company
Currency: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Voting|||
||||||||||Ultimate||
||Relationship||||||Shareholding|||Organisation|
|Entity||Type of|Registration|Legal||Registration||power|Control||
||with the||||Business nature||percentage|percentage|Party|code|
|name|Company|enterprise|location|representative||capital (RMB)|(%)|(%)|||
||||||Port and shipping,||||||
|Nanshan|Actual|Sino-foreign|Shenzhen,||offshore oil||||Nanshan||
|||||Fu Yuning|service, real estate|900,000,000.00|51.79|51.79||61883297-6|
|Group|Controller|joint venture|Guangdong||development and||||Group||
||||||new construction||||||
||||||material||||||

2、Subsidiaries of the Company
Currency： RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||Registration|Legal|Business|Registration|Shareholding|Voting power|Organisation|
|Subsidiaries|Type of Subsidiaries|||||||||
|||Type of enterprise||||||||
||||location|representative|nature|capital (RMB)|percentage (%)|percentage (%)|code|
|Baowan Holding Co., Ltd|Holding Company|limited liability|Shenzhen|Liu Wei|Investment||77.36%|77.36%|58007384-6|
|||||||500,000,000||||
|Shanghai Baowan International|||||Logistics|||||
||Holding Company|limited liability|Shanghai|Ren Yongping|||100%|100%|76057836-6|
|||||||160,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Guangzhou Baowan International|||||Logistics|||||
||Holding Company|limited liability|Guangzhou|Ren Yongping|||100%|100%|76954322-3|
|||||||150,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Kunshan Baowan International|||||Logistics|||||
||Holding Company|limited liability|Kunshan|Liu Wei|||100%|100%|79231068-X|
|||||||120,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Tianjin Baowan International|||||Logistics|||||
||Holding Company|limited liability|Tianjin|Liu Wei|||100%|100%|78334845-9|
|||||||150,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Langfang Baowan International|||||Logistics|||||
||Holding Company|limited liability|Langfang|Ren Yongping|||100%|100%|79546095-8|
|||||||90,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Chengdu Longquan Baowan|||||Logistics|||||
||Holding Company|limited liability|Chengdu|Ren Yongping|||100%|100%|66530615-1|
|||||||100,000,000||||
|International Logistic Co., Ltd.|||||service|||||
|Chengdu Xindu Baowan|||||Logistics|||||
||Holding Company|limited liability|Chengdu|Ren Yongping|||100%|100%|66533423-2|
|||||||60,000,000||||
|International Logistic Co., Ltd.|||||service|||||
|Nanjing Baowan International|||||Logistics|||||
||Holding Company|limited liability|Nanjing|Ren Yongping|||100%|100%|67133602-3|
|||||||130,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Tianjin Bingang Baowan|||||Logistics|||||
||Holding Company|limited liability|Tianjin|Ren Yongping|||100%|100%|58327930-5|
|||||||50,000,000||||
|International Logistic Co., Ltd.|||||service|||||
|Nantong Baowan International|||||Logistics|||||
||Holding Company|limited liability|Nantong|Liu Wei|||100%|100%|59562929-6|
|||||||400,000,000||||
|Logistic Co., Ltd.|||||service|||||

|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Baowan Logistic（Wuhan）Co.,|||||Logistics|||||
||Holding Company|limited liability|Wuhan|Liu Wei|||100%|100%|59791167-4|
|||||||100,000,000||||
|Ltd.|||||service|||||
|Tianjin Qingwu Baowan|||||Logistics|||||
||Holding Company|limited liability|Tianjin|Liu Wei|||100%|100%|59874201-6|
|||||||50,000,000||||
|International Logistic Co., Ltd.|||||service|||||
|Shenyang Baowan International|||||Logistics|||||
||Holding Company|limited liability|Liaoning|Liu Wei|||100%|100%|05078213-5|
|||||||100,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Baowan Logistic (Wuhan|||||Logistics|||||
||Holding Company|limited liability|Wuhan|Liu Wei|||100.00%|100.00%|07051892-1|
|||||||100,000,000||||
|Yangluo ) Co., Ltd.|||||service|||||
|Feidong Baowan International|||||Logistics|||||
||Holding Company|limited liability|Anhui|Fu Jialin|||100.00%|100.00%|08759376-8|
|||||||100,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Xi‟an Baowan International|||||Logistics|||||
||Holding Company|limited liability|ShanXi|Yu Zhongxia|||100.00%|100.00%|08104722-1|
|||||||100,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Xianyang Baowan International|||||Logistics|||||
||Holding Company|limited liability|ShanXi|Yu Zhongxia|||100.00%|100.00%|09394984-7|
|||||||100,000,000||||
|Logistic Co., Ltd.|||||service|||||
|Shenzhen Baowan International|||||Logistics|||||
||Holding Company|limited liability|Shenzhen|Liu Wei|||100%|100%|61885906-0|
|||||||34,409,050||||
|Logistic Co., Ltd.|||||service|||||
|Mingjiang (Shanghai)|||||Logistics|||||
||Holding Company|limited liability|Shanghai|Ren Yongping|||100%|100%|79149154-6|
|||||||120,000,000||||
|International Logistic Co., Ltd.|||||service|||||

3、Associates and joint ventures of the Company
Currency: RMB Yuan
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Investee|Type of enterprise|Registration|Legal|Business|Registration capital|Shareholding|Voting power|Relationship with the|Organisation|
|||location|representative|nature|(RMB)|percentage (%)|percentage (%)|Company|code|
|Associates||||||||||
|CSE|Limited liability|Shenzhen|Deng Jianhui|Service|US$30,000,000.00|32%|32%|Affiliated Company|61880960-2|
|CPEC|Limited liability|Shenzhen|Sun Jianjun|Service|US$2,000,000.00|20%|20%|Affiliated Company|61887962-7|
|||||Financial|||||L0078H2440300|
|Zhongkai Finance|Limited liability|Shenzhen|Tian Junyan||RMB50000,000.00|20%|20%|Affiliated Company||
|||||Service|||||01|

4、Other related parties of the Company
||||
|-|-|-|
||Relationship between other related||
|Name of other related party||Organisation code|
||parties and the Company||
|Shenzhen Nanshan Real EstateDevelopment Ltd. ("Nanshan RealEstate")|||
||Controlled by the same party|61883297-6|
|Shenzhen Chixiao ProjectEngineering Co., Ltd. ("ChixiaoProject")|||
||Controlled by the same party|61883136-7|
|Shenzhen Chixiao ConstructionTechnology Co., Ltd. ("ChixiaoConstruction")|||
||Controlled by the same party|61881595-7|
|Yahgee Ltd.|Controlled by the same party|72855133-1|
|Shenzhen Chiwan Oriental LogisticsCo., Ltd. ("Oriental Logistics")|||
||Controlled by the same party|69018024-7|
|Directors, general manager,vice-general managers, etc. of theCompany|||
||Key management personnel|Not applicable|

5、Related party transactions
（1）Sales and purchase of goods, provision and receipt of services
Receipt of service
Currency： RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|||Pricing anddecision-makingprocedures of related|Amount for the current period||Amount for the prior period||
|||||Proportion of the||Proportion of the|
|Related party||||amount of related||amount of related|
|||||party transactions||party transactions|
|||||to that of similar||to that of similar|
||Details of related party|||transactions||transactions|
||||Amount||Amount||
||transaction|party transactions||(%)||(%)|
|||Referred to marketprice|||||
|Nanshan Group|Power supply service||1,344,957.27|100.00%|1,291,232.00|100%|
|||Referred to marketprice|||||
|Chixiao Project|Construction service||6,206,193.93|1.96%|6,296,909.64|3.01%|

Provision of service
Currency： RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Amount for the current period||Amount for the prior period||
|||||Proportion of the||Proportion of the|
|Related party||Pricing and|||||
|||||amount of related||amount of related|
|||decision-making||party transactions||party transactions|
||Details of related party||||||
|||procedures of related||to that of similar||to that of similar|
||||Amount||Amount||
||transaction|party transactions||transactions||transactions|

||||||||
|-|-|-|-|-|-|-|
|||||(%)||(%)|
||Loading and unloading|Referred to market|||||
|CSE|||2,245,790.92|3.20%|3,394,034.98|18.61%|
||service|price|||||
||Loading and unloading ,|Referred to market|||||
|CPEC|||37,661.95|0.05%|65,305.88|0.36%|
||Maintenance service|price|||||
||Maintenance service,|Referred to market|||||
|Nanshan Group|||58,846.58|0.73%|25,828.22|0.14%|
||Water Supply|price|||||
||Maintenance service,|Referred to market|||||
|Zhongkai Finance|||11,162.24|0.14%|||
||Water Supply|price|||||
|||Referred to market|||||
|CSE|Stack (storage) service||1,544,382.00|0.71%|||
|||price|||||
|||Referred to market|||||
|CPEC|Stack (storage) service||430,716.00|0.20%|||
|||price|||||
|||Referred to market|||||
|Nanshan Group|Stack (storage) service||4,800.00|0.00%|||
|||price|||||

（2）Leases with related parties
Leases where a group entity is the lessor:
Currency：RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||||Basis of|Lease income|
|||Type of leased|Commencement|Expiration date of|||
|Name of lessor|Name of lessee||||||
||||||determining the|recognised in the|
|||assets|date of leases|leases|||
||||||lease income|current year|
||||||Referred to market||
|The Company|Nanshan Group|Office Building|01/06/2006|31/12/2014||3,063,854.61|
||||||price||
||Nanshan Real||||Referred to market||
|The Company||Office Building|01/01/2014|31/12/2014||39,822.96|
||Estate||||price||
||||||Referred to market||
|The Company|CSE|Office Building|16/10/2002|15/10/2022||392,918.28|
||||||price||
||||||Referred to market||
|The Company|CPEC|Office Building|01/11/2009|31/12/2014||236,926.08|
||||||price||
||||||Referred to market||
|The Company|Zhongkai Finance|Office Building|01/07/2013|31/12/2014||560,228.76|
||||||price||
||||||Referred to market||
|Shanghai Baowan|Oriental Logistics|Office Building|01/01/2013|31/12/2014||45,402.60|
||||||price||

Leases where a group entity is the lessee:
Currency: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||||Basis of|Lease income|
|||Type of leased|Commencement|Expiration date of|||
|Name of lessor|Name of lessee||||||
||||||determining the|recognised in the|
|||assets|date of leases|leases|||
||||||lease income|current year|
||||||Referred to market||
|Nanshan Group|The Company|Field|01/09/2006|14/07/2034||14,354,412.33|
||||||price||
||Shenzhen||||Referred to market||
|Nanshan Group||Field|12/11/1988|11/12/2018||993,708.80|
||Baowan||||price||

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

(4) Borrowings/loans with related parties
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|Related party|Amount of borrowing|Inception date|Maturity date|Remarks|
|Borrow from:|||||
|||||The loan is used for the|
|||||construction of logistics parks of|
|Nanshan Group|650,000,000.00|11/11/2011|11/11/2016|the Company's subsidiaries and|
|||||the workship wharf engineering|
|||||project of the Company. The|
|||||annual interest rate is 6.8150%.|
|||||The loan is to satisfy the|
|Nanshan Group|50,000,000.00|11/11/2011|11/11/2016|development needs of the Group.|
|||||The annual interest rate is|
|||||6.8150%.|
|||||There is no fixed term for|
|||||repayment for the above|
|Nanshan Group|212,017,631.49||||
|||||mentioned borrowings and loans.|
|||||The interest rates are based on|
|||||the market interest rates|

6、Amounts due from / to related parties
Amounts due from relatedparties：
Currency: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Closing balance||Opening balance||
|Item|Related party|Carrying amount|Bad debt provision|Carrying amount|Bad debt provision|
|Accounts receivable|CSE|366,883.87||3,854,041.82|38,540.42|
|Accounts receivable|CPEC|528,692.99||366,834.89|3,668.35|
|Accounts receivable|Nanshan Real Estate|31,327.80||6,390.32|63.90|
|Accounts receivable|Nanshan Group|807,992.52||||
|Other receivables|CSE|22,971.48|229.71|22,971.48|229.71|

|||||||
|-|-|-|-|-|-|
|Other receivables|CPEC|146,888.96|1,468.89|146,888.94|1,468.89|
|Other receivables|Yahgee Ltd|20,000.00|200.00|20,000.00|200.00|
|Dividend receivable|CSE|||48,000,000.00||

Amounts due to relatedparties：
Currency: RMB Yuan
|||||
|-|-|-|-|
|Item|Related party|Closing balance|Opening balance|
|Accounts payable|Nanshan Group|7,008,201.06|6,132,919.30|
|Accounts payable|CSE|16,554.40|16,554.40|
|Accounts payable|Chixiao Construction|9,740.00|9,740.00|
|Interest payable|Nanshan Group|29,418,083.35|6,758,208.33|
|Other payables|Nanshan Group|8,277,200.51|8,201,702.79|
|Other payables|Chixiao Construction Company|5,906,878.46|6,306,878.46|
|Other payables|Chixiao Project Company|3,455,933.30|1,751,292.65|
|Other payables|CPEC|207,642.00|202,913.64|
|Other payables|CSE|204,224.04|164,425.00|
|Other payables|Oriental Logistics|5,000.00|5,000.00|
|Non-current liabilities due within one year|CSE|785,836.56|785,836.56|
|Long-term payables|Nanshan Group|212,011,691.49|212,011,691.49|
|Other non-current liabilities|Nanshan Group|700,000,000.00|700,000,000.00|
|Other non-current liabilities|CSE|5,843,790.42|6,236,708.70|

 IX. NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1、Accounts Receivable
（1）Disclosure of accounts receivable by categories:
Currency：RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Closing balance||||Opening balance||||
||Carrying amount||Bad debt provision||Carrying amount||Bad debt provision||
|Category|||||||||
|||Proportion||Proportion||Proportion||Proportion|
||Amount||Amount||Amount||Amount||
|||(%)||(%)||(%)||(%)|
|Accounts receivable for which bad debt provision has been assessed by portfolios|||||||||
|Accruing bad debt provision|||||||||
||102,255,690.44|99.84%|405,234.19|0.40%|40,523,415.65|99.60%|405,234.19|1.00%|
|according to the|||||||||
|percentage-of-receivables approach|||||||||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Subtotal of portfolios|102,255,690.44|99.84%|405,234.19|0.40%|40,523,415.65|99.60%|405,234.19|1.00%|
|Accounts receivable that are|||||||||
|not individually significant but|164,138.37|0.16%|164,138.37|100.00%|164,138.37|0.40%|164,138.37|100.00%|
|or which bad debt provision|||||||||
|has been assessed individually|||||||||
|Total|102,419,828.81|--|569,372.56|--|40,687,554.02|--|569,372.56|--|

Accounts receivable that are significant in amount individually and provided for bad debt individually
□Applicable√Not Applicable
In portfolio, accruing bad debt provision accounting to aging analysis of accounts receivable:
□Applicable√Not Applicable
In portfolios，accruing bad debt provision according to the percentage-of-receivablesapproach：
√ Applicable□ Not Applicable
Currency：RMB Yuan
|||||
|-|-|-|-|
|Name of the portfolio|Book value|Accruing Ratio (%)|Allowance for Bad Debts|
|Accruing bad debt provision according to the||||
||102,255,690.44|0.40%|405,234.19|
|percentage-of-receivables approach||||
|Total|102,255,690.44|--|405,234.19|

 In portfolio, accruing bad debt provision accounting to other approaches
□Applicable√Not Applicable
Accounts receivable that are not individually significant but for which bad debt provision has been assessed individually:
√ Applicable□ Not Applicable
Currency：RMB Yuan
||||||
|-|-|-|-|-|
|Content|Book value|Allowance for Bad Debts|Accruing Ratio (%)|Reasons for Accruing|
|Revenue from StorageActivity|||100.00%|The customer‟s company|
||164,138.37|164,138.37|||
|||||was closed down.|
|Total|164,138.37|164,138.37|--|--|

(2) Accounts receivable are due from shareholders holding at least5% of the Company's shares with voting power in the reporting period
Currency：RMB Yuan
||||||
|-|-|-|-|-|
||Closing Balance||Opening Balance||
|Name of Company|||||
|||Allowance for Bad|Book value|Allowance for Bad|
||Book value||||
|||Debts||Debts|
|Nanshan Group|807,992.52|0.00|0.00|0.00|
|Total|807,992.52|0.00|0.00|0.00|

 (3) Top five enterprises of accounts receivables
Currency：RMB Yuan
||||||
|-|-|-|-|-|
|||||Proportion of the|
||Relationship with the||||
|Name of entity||Amount|Age||
|||||amount to the total|
||Company||||
|||||accounts receivable (%)|
|Shenzhen Weisheng|||||
||Unrelated party|36,633,236.55|Within 1 year|31.97%|
|Offshore Oil|||||
|Technology Co., Ltd.|||||
|Shenzhen Oilfield|||||
|Engineering|Unrelated party|22,963,351.96|Within 1 year|20.04%|
|Underwater|||||
|Technology Ltd|||||
|CNOOC|||||
||Unrelated party|6,037,973.44|Within 1 year|5.27%|
|Limited-Huizhou|||||
|Operation Company|||||
|Newfield China|||||
|Newfield China|Unrelated party|4,143,371.88|Within 1 year|3.62%|
|LDC,NCL|||||
|China Oilfield|||||
|China Oilfield|||||
||Unrelated party|3,590,796.29|Within 1 year|3.13%|
|Services Limited|||||
|-oiling|||||
|Total|--|73,368,730.12|--|64.03%|

（4） Receivables from related parties
Currency: RMB Yuan
|||||
|-|-|-|-|
||||Percentage of Total|
|Company|Relation with the Group|Amount||
||||Receivables (%)|
|CSE|Affiliated Company|366,883.87|0.36%|
|CPEC|Affiliated Company|528,692.99|0.52%|
|Nanshan Real Estate|Related Party|31,327.80|0.03%|
|Nanshan Group|Parent Company|807,992.52|0.79%|
|Total|--|1,734,897.18|1.70%|

2、Other Receivables
（1）Disclosure of other receivables by categories:
Currency: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|Category|Closing balance||||Opening balance||||
||Carrying amount||Bad debt provision||Carrying amount||Bad debt provision||
|||Proportion||Proportion||Proportion||Proportion|
||Amount||Amount||Amount||Amount||
|||(%)||(%)||(%)||(%)|
|Other receivable for which bad debt provision has been assessed by portfolios|||||||||
|Portfolio1|1,144,990,160.26|100.00%|||1,084,317,318.00|99.88%|||

||||||||||
|-|-|-|-|-|-|-|-|-|
|Portfolio2|2,453,808.34|0.00%|12,642.00|0.52%|1,264,199.34|0.12%|12,642.00|1.00%|
|Subtotal of portfolios|1,147,443,968.60|100.00%|12,642.00|0.00%|1,085,581,517.34|100.00%|12,642.00|0.00%|
|Other receivables that are not|||||||||
|ndividually significant but for|1,147,443,968.60|--|12,642.00|--|1,085,581,517.34|--|12,642.00|--|
|which bad debt provision has|||||||||
|been assessed individually|||||||||
|Total|1,144,990,160.26|100.00%|||1,084,317,318.00|99.88%|||

Other receivables that are significant in amount individually and provided for bad debt individually
□Applicable√Not Applicable
In portfolio, accruing bad debt provision accounting to aging analysis of accounts receivable:
□Applicable√Not Applicable
In portfolios，accruing bad debt provision according to the percentage-of-receivablesapproach：
√ Applicable□ Not Applicable
Currency：RMB Yuan
|||||
|-|-|-|-|
|Name of the portfolio|Book value|Accruing Ratio (%)|Allowance for Bad Debts|
|Accruing bad debt provision according||||
||2,453,808.34|0.00%|12,642.00|
|to the percentage-of-receivables||||
|approach||||
|Total|2,453,808.34|--|12,642.00|

 In portfolio, accruing bad debt provision accounting to other approaches
□Applicable√Not Applicable
Other receivables that are not individually significant but for which bad debt provision has been assessed individually:
□ Applicable√Not Applicable
（2）Top five entities with the largest balances of other receivables
Currency：RMB Yuan
||||||
|-|-|-|-|-|
|||||Proportion of the|
||Relationship with the||||
|Name of entity||Amount|Age|amount to the total|
||Company|||accounts receivable|
|||||(%)|
|Baowan Holding|Subsidiary|1,144,680,942.30|Within 2 years|99.76%|
|Suzhou Dafang|||||
||Unrelated Party|585,000.00|Within 1 year|0.05%|
|Special Vehicle|||||
|Ltd.,Co.|||||
|CNOOC Sales|||||
||Related Party|288,000.00|Within 2 year|0.03%|
|Shenzhen Co., Ltd.|||||
|CPEC|Unrelated Party|146,888.94|Over 3 years|0.01%|
|China Oilfield|||||
|China Oilfield|Unrelated Party|115,646.60|Over 3 years|0.01%|
|Services Limited|||||

||||||
|-|-|-|-|-|
|Total|--|1,145,816,477.84|--|99.86%|

 (3) Receivables from related parties
|||||
|-|-|-|-|
||||Percentage of Total|
|Related Party|与本公司关系|Amount||
||||Receivables (%)|
|CSE|Affiliated Company|22,971.48|0.00%|
|CPEC|Affiliated Company|146,888.94|0.01%|
|Baowan Holdings|Subsidiary|1,144,680,942.30|99.76%|
|Total|--|1,144,850,802.72|99.77%|

3、Long-term Equity Investment
Details of long-term equity investments are as follows:
Currency：RMB Yaun
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||i|Explanation||||
|||||||||of the||||
|||||||||nconsistenc||||
|||||||Proportion of||||||
||||||||roportion of|y between||rovision for||
|||||Changes|||||PProvision for||Cash|
||Accounting|Investment|Opening||Closing|Pownership||the||||
|Investee|||||||oting power|||impairment||
|||||[increase/||vinterest in||roportion of|impairment||ividends for|
||method|cost|balance||balance||pin the|||dosses for the||
|||||(decrease)]||the investeei||ownership|llosses||the period|
||||||||nvestee (%)|||period||
|||||||(%)||interest and||||
||||||||pv|the||||
|||||||||roportion of||||
|||||||||oting power||||
|CSE|Equity|79,488,000.0|369,433,367.|24,957,352.6|394,390,719.|32.00%|32.00%|||||
||method|0|09|6|75|||||||
||Equity|||||||||||
|CPEC||3,312,000.00|5,715,189.15|-790,492.21|4,924,696.94|20.00%|20.00%|||||
||method|||||||||||
|Zhongkai|Equity|100,000,000.|101,105,139.||102,440,444.|||||||
|||||1,335,305.69||20.00%|20.00%|||||
|Finance|method|00|15||84|||||||
|Baowan|Cost|830,531,987.|830,531,987.||830,531,987.|||||||
|||||||77.36%|77.36%|||||
|Holdings|method|58|58||58|||||||
|henzhen|Cost|41,834,700.0|41,273,772.1||41,273,772.1|||||||
|||||||100.00%|100.00%|||||
|aowan|method|7|3||3|||||||
|Total|--|1,055,166,687.65|1,348,059,455.10|25,502,166.14|1,373,561,621.24|--|--|--||||

4、Operating income and operating costs
（1）Operating income and operating costs
Currency: RMB Yuan
||||
|-|-|-|
||Amount recognised in the current|Amount recognised in the prior|
|Item|||
||period|period|
|Principal operating income|171,989,981.46|157,047,311.82|

||||
|-|-|-|
|Other operating income|0.00|0.00|
|Operating income|171,989,981.46|157,047,311.82|
|Operating costs|62,571,965.39|56,521,556.16|

（2）Operating activities (classified by industries)
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Amount recognised in the current period||Amount recognised in the current period||
|Name of industry|Operating income|Operating costs|Operating income|Operating costs|
|Stack (storage)|58,958,232.94|32,276,698.95|66,903,984.24|31,194,165.34|
|Loading and unloading|66,318,414.45|17,940,655.21|42,286,604.49|14,525,107.42|
|Port management|34,144,921.98|7,668,823.62|35,033,521.05|6,446,336.68|
|Office leasing and others|12,568,412.09|4,685,787.61|12,823,202.04|4,355,946.72|
|Total|171,989,981.46|62,571,965.39|157,047,311.82|56,521,556.16|

（3）Operating activities (classified by products)
单位：元
||||||
|-|-|-|-|-|
||Amount recognised in the current period||Amount recognised in the current period||
|Name of Product|Operating income|Operating costs||Operating income|
|Stack (storage)|58,958,232.94|32,276,698.95|66,903,984.24|31,194,165.34|
|Loading and unloading|66,318,414.45|17,940,655.21|42,286,604.49|14,525,107.42|
|Port management|34,144,921.98|7,668,823.62|35,033,521.05|6,446,336.68|
|Office leasing and others|12,568,412.09|4,685,787.61|12,823,202.04|4,355,946.72|
|Total|171,989,981.46|62,571,965.39|157,047,311.82|56,521,556.16|

 (4) Operating activities (classified by regions)
||||||
|-|-|-|-|-|
||Amount recognised in the current period||Amount recognised in the current period||
|region|||||
||Operating income|Operating costs|Operating income|Operating costs|
|Southwest China|171,989,981.46|62,571,965.39|157,047,311.82|56,521,556.16|
|Total|171,989,981.46|62,571,965.39|157,047,311.82|56,521,556.16|

（5）Operating income from the Company's top five customers
Currency: RMB Yuan
||||
|-|-|-|
|||Proportion to total|
|Customer|Operating income||
|||operating income of|
|||the Company (%)|
|Shenzhen Oilfield Engineering Underwater Technology|||
||36,425,314.06|21.18%|
|Ltd|||
|Shenzhen Weisheng Offshore Oil Technology|||
||34,560,087.08|20.09%|
|Co.,Ltd|||
|CNOOC Limited-Huizhou Operation Company|11,093,660.46|6.45%|
|Baker Hughes Asia Pacific Ltd.|6,537,150.27|3.80%|
|Newfield China LDC,NCL|6,147,404.24|3.57%|
|Total|94,763,616.11|55.09%|

5、Investment income
(1)Details of investment income
Currency: RMB Yuan
||||
|-|-|-|
||Amount recognised in the|Amount recognised in the|
|Item|||
||current period|prior period|
|Income from long-term equity investments under|||
||25,502,166.14|24,385,334.51|
|equity method|||
|Others|12,567,232.36|10,540,602.61|
|Total|38,069,398.50|34,925,937.12|

（2）Income from long-term equity investments under equity method
Currency: RMB Yuan
|||||
|-|-|-|-|
|||Amount||
||Amount|||
||||Reasons for increase or decrease in the current period|
|Investee||recognised in||
||recognised in the|||
|||the prior|compared to the prior period|
||current period|||
|||period||
|CSE|24,957,352.66|24,182,821.83|Changes of net profits gained by the investee in the current period|
|CPEC|-790,492.21|202,512.68|Changes of net profits gained by the investee in the current period|
|Zhongkai Finance|1,335,305.69|||
|Total|25,502,166.14|24,385,334.51|--|

6、Supplementary information to the cash flow statement
(1)Supplementary information to the cash flow statement
Currency: RMB Yuan
||||
|-|-|-|
|Supplementary information|Current Period|Prior Period|
|1. Reconciliation of net profit to cash flow from operating|||
||--|--|
|activities:|||
|Net profit|70,400,468.19|57,643,068.97|
|Depreciation of fixed assets, depletion of oil & gas|||
||7,650,713.89|7,420,552.28|
|assets and productive biologic material depreciation|||
|Amortisation of intangible assets|8,425,185.06|8,442,805.19|
|Gains on disposal of fixed assets, intangible assets and|||
||-135,831.30|-331,734.80|
|other long-term assets(„-‟ for gain)|||
|Financial expenses(gains are indicated by "-")|38,539,937.57|50,479,574.23|
|Losses arising from investments (gains are indicated|||
||-38,069,398.50|-34,925,937.12|
|by "-")|||
|Decrease in inventories (increase is indicated by "-")|24,543.30|11,676.17|
|Decrease in receivables from operating activities|||
||-61,730,299.61|-19,615,993.86|
|(increase is indicated by "-")|||
|Increase in payables from operating activities|||
||-10,129,367.17|14,069,552.64|
|(decrease is indicated by "-")|||
|Net cash flow from operating activities|14,975,951.43|83,193,563.70|
|2．Significant investment and financing activities not|||
||--|--|
|involving receipts and disbursements:|||
|3．Net changes in cash and cash equivalents:|--|--|
|Closing balance of cash|100,383,972.84|302,470,150.16|
|Less: Opening balance of cash|59,429,719.52|853,612,179.80|
|Net increase in cash and cash equivalents|40,954,253.32|-551,142,029.64|

 XIV. SUPPLEMENTARY INFORMATION
1、Breakdown of non-recurring profit or loss
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount|Remark|
|Profit or loss on disposal of non-current assets|129,663.27||
|Government grants recognised in profit or loss for current period (other than|||
|grants which are closely related to the Company's business and are either in fixed|4,060,913.02||
|amounts or determined under quantitative methods in accordance with the|||
|national standard)|||

||||
|-|-|-|
|Other non-operating income or expenses other than the above|1,891,244.55||
|Tax effects|1,520,455.21||
|Effects attributable to minority interests (after tax)|788,511.43||
|Total|3,772,854.20|--|

2、 Return on equity (ROE) and earnings per share ("EPS")
Currency: RMB Yuan
|||||
|-|-|-|-|
|||EPS||
||Weighted average return on|||
|Profit for the reporting period||||
||net assets (%）|Basic EPS|Diluted EPS|
|Net profit attributable to ordinary shareholders||||
||7.81%|0.52|0.52|
|of the Company||||
|Net profit after deduction of non-recurring||||
||7.56%|0.50|0.50|
|profits or losses attributable to ordinary||||
|shareholders of the Company||||

3、 Abnormal financial statements items (“F/S items”) and description of those reasons Currency: RMB Yuan
|||||||
|-|-|-|-|-|-|
||F/S items|Current Period|Openingbalance/Priorperiod|Change by%|Reasons for the changes|
|1|Cash and bank balances|156,165,466.03|233,332,680.86|-33.07%|Mainly due to purchase of bankfinancial products.|
|2|Accounts receivable|114,574,200.62|55,359,989.14|106.96%|Mainly caused by deferred payment dueto some contracts of Petroleum Servicenot signed.|
|3|Prepayment|967,941.93|552,431.59|75.21%|Mainly due to the prepayment ofinsurance premium.|
|4|Interest receivable|0|4,797,363.01|-100.00%|Mainly due to the decrease in theearnings from bank financial products|
|5|Dividend receivable|0|48,000,000.00|-100.00%|Representing dividends announced byShenzhen Chiwan SembawangEngineering Co., Ltd., associate of theCompany, distributed from its previousyear's profits|
|6|Construction-in-progress|609,922,868.96|376,118,459.02|62.16%|Mainly caused by new construction inprogress started in current period,specifically Nanjing Bawoan , NantongBaowan , Wuhan Baowan andGuangzhou Baowan Lot A LogisticsPark|
|7|Other non-current asset|165,869,983.05|17,273,362.26|860.26%|Mainly due to some subsidiaries'acquisition of land use rights, leading todecrease in prepayments on lands.|

|||||||
|-|-|-|-|-|-|
|8|Accounts Payable|15,743,430.21|10,629,691.02|48.11%|Mainly due to the increase in thelocation rental accordingly.|
|9|Interest payable|53,095,506.20|28,339,479.77|87.36%|Mainly due to the increase in accruedinterest|
|10|Other payables|344,996,639.06|235,814,254.97|46.30%|Mainly due to input of construction inprogress of some subsidiaries, leadingto increase in payables to constructioncontractors.|
|11|Long-term borrowings|265,719,036.25|185,443,647.96|43.29%|Mainly due to the increase in bankloans.|
|12|Special Reserve|3,434,216.33|2,622,730.81|30.94%|Mainly due to the increase in accruedproduction safety fee for currentperiod.|
|13|Non-operating income|5,959,210.52|2,605,878.97|128.68%|Mainly due to the increase in obtaininggovernment grants in current period|
|14|Cash payments forgoods purchased andservices received|55,626,917.25|42,129,375.84|32.04%|Mainly are the payments for expensesof previous year.|
|15|Other cash paymentsrelating to operatingactivities|17,023,171.27|12,586,112.84|35.25%|Mainly due to the increase in refund ofdeposits|
|16|Cash receipts frominvestment income|48,000,000.00|22,400,000.00|114.29%|Mainly due to the increase in the cashdividend announced by ShenzhenChiwan Sembawang Engineering Co.,Ltd., associate of the Company,distributed from its previous year'sprofits|
|17|Cash payments toacquire or constructfixed assets, intangibleassets and otherlong-term assets|348,664,062.43|181,051,150.76|92.58%|Mainly due to the increase in thepayment for land funds and projectfunds.|
|18|Other cash paymentsrelating to investingactivities|1,588,990,000.00|2,370,000,000.00|-32.95%|Mainly due to the duration of bankfinancial products are longer than thoseof prior period.|
|19|Cash receipts fromborrowings|80,275,388.29|16,874,390.11|375.72%|Mainly due to the increase in bankloans.|
|20|Cash repayments ofborrowings|300,000.00|207,300,000.00|-99.86%|Mainly due to the decrease inrepayment for borrowings|
|21|Other cash paymentsrelating to financingactivities|3,481,200.00|1,200,000.00|190.10%|Mainly due to the payment for securitycost of corporate bond for NanshanGroup.|