SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD. THE INTERIM FINANCIAL REPORT FOR YEAR 2017 LegalRepresentative：
Chief FinancialOfficer：
FinancialManager：
Financial Statements for the First Half of 2017 (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.Balance Sheet
Consolidated Currency: RMB
||||
|-|-|-|
|Items|Ending Balance|Beginning Balance|
|Current Assets:|||
|Cash and bank balances|491,913,131.33|524,609,097.58|
|Notes receivable|1,400,000.00|-|
|Accounts receivable|71,101,110.24|43,862,804.61|
|Prepayments|2,310,602.14|748,064.45|
|Interest receivable|363,407.67|423,404.92|
|Dividends receivable||-|
|Other receivables|63,870,649.98|63,863,606.97|
|Inventories|781,212.98|961,855.72|
|Other current assets|23,161,678.79|14,424,379.64|
|Total Current Assets|654,901,793.13|648,893,213.89|
|Non-current Assets:||-|
|Long-term equity investments|621,222,760.45|602,194,915.06|
|Investment properties|1,757,704,348.02|1,606,049,338.07|
|Fixed assets|1,051,111,408.39|877,096,096.64|
|Construction in progress|425,117,867.25|601,906,964.62|
|Disposal of fixed assets|15,835.78|-|
|Intangible assets|2,307,173,208.35|2,245,211,656.35|
|Development expenditure|2,083,751.85|1,330,674.42|
|Goodwill|11,133,118.55|11,133,118.55|
|Deferred tax assets|31,377,171.96|24,317,786.92|
|Other non-current assets|1,083,434,577.17|930,907,761.60|
|Total Non-current Assets|7,290,374,047.77|6,900,148,312.23|
|TOTAL ASSETS|7,945,275,840.90|7,549,041,526.12|
|Current Liabilities:||-|
|Short-term borrowings|1,574,000,000.00|850,000,000.00|
|notes payable|35,891,264.20|16,200,019.20|
|Accounts payable|15,938,534.08|11,500,505.03|
|Receipts in advance|6,749,008.98|9,185,065.04|
|Employee benefits payable|17,477,387.34|21,162,917.90|
|Taxes payable|28,551,246.35|30,107,734.45|
|Interest payable|17,611,302.22|23,856,299.00|
|Other payables|453,944,880.13|437,522,424.61|
|Non-current liabilities due within one year|238,763,603.40|633,057,978.40|
|Other current liabilities||564,000,000.00|
|Total Current Liabilities|2,388,927,226.70|2,596,592,943.63|
|Non-current Liabilities:||-|
|Long-term borrowings|1,165,227,475.45|1,186,288,100.45|
|Bonds payable|569,382,500.00|568,641,500.00|
|Long-term payables||-|
|Special payable|1,309,524.80|-|
|Deferred income|48,773,043.55|49,599,079.39|
|Deferred tax liabilities|22,654,820.35|22,812,085.88|
|Other non-current liabilities|1,113,988,969.48|511,018,207.18|
|Total Non-current Liabilities|2,921,336,333.63|2,338,358,972.90|
|TOTAL LIABILITIES|5,310,263,560.33|4,934,951,916.53|
|SHAREHOLDERS' EQUITY:||-|
|Share capital|230,600,000.00|230,600,000.00|
|Capital reserve|234,141,186.09|234,141,186.09|
|Other comprehensive income|652,079.14|652,079.14|
|Special reserve|7,211,087.75|6,774,707.73|
|Surplus reserve|318,603,562.42|318,603,562.42|
|Unappropriated profits|977,132,348.00|966,064,644.53|
|Total shareholders' equity attributable to equityholders of the Company|1,768,340,263.40|1,756,836,179.91|
|Minority interests|866,672,017.17|857,253,429.68|
|TOTAL SHAREHOLDERS' EQUITY|2,635,012,280.57|2,614,089,609.59|
|TOTAL LIABILITIES ANDSHAREHOLDERS' EQUITY|7,945,275,840.90|7,549,041,526.12|

Legal Representative: Tian Junyan Chief financialofficer：Yu Zhongxia Financialmanager：Sun Yuhui
2.Balance Sheet
Parent company Currency: RMB
||||
|-|-|-|
|Items|Ending Balance|Beginning Balance|
|Current Assets:|||
|Cash and bank balances|7,764,595.66|14,320,382.62|
|Accounts receivable|35,507,444.10|22,179,847.58|
|Prepayments|295,791.96|199,347.18|
|Interest receivable||-|
|Dividends receivable||-|
|Other receivables|181,921,475.25|458,310,323.30|
|Inventories|579,563.39|666,721.31|
|Other current assets||-|
|Total Current Assets|226,068,870.36|495,676,621.99|
|Non-current Assets:||-|
|Long-term equity investments|3,283,654,584.75|3,235,207,239.36|
|Investment properties|112,654,896.96|115,535,029.89|
|Fixed assets|49,555,008.25|53,000,328.21|
|Construction in progress|1,991,644.61|2,626,533.00|
|Disposal of fixed assets|14,316.63|-|
|Intangible assets|268,479,036.74|276,936,159.10|
|Deferred tax assets||-|
|Other non-current assets|2,943,595.75|3,100,849.21|
|Total non-current assets|3,719,293,083.69|3,686,406,138.77|
|TOTAL ASSETS|3,945,361,954.05|4,182,082,760.76|
|Current Liabilities:||-|
|Short-term borrowings|930,000,000.00|800,000,000.00|
|notes payable|3,553,780.83|-|
|Accounts payable|12,462,695.95|10,800,195.25|
|Employee benefits payable|8,154,739.74|8,499,705.90|
|Taxes payable|1,812,626.52|1,325,799.55|
|Interest payable|17,197,458.30|22,814,519.98|
|Other payables|121,360,468.16|85,907,775.53|
|Non-current liabilities due within one year|1,349,351.16|401,349,351.16|
|Other current liabilities||220,000,000.00|
|Total Current Liabilities|1,095,891,120.66|1,550,697,347.37|
|Non-current Liabilities:||-|
|Long-term borrowings|377,024,302.04|378,824,302.04|
|Bonds payable|569,382,500.00|568,641,500.00|
|Deferred tax liability||-|
|Other non-current liabilities|494,343,531.60|255,018,207.18|
|Total Non-current Liabilities|1,440,750,333.64|1,202,484,009.22|
|TOTAL LIABILITIES|2,536,641,454.30|2,753,181,356.59|
|SHAREHOLDERS' EQUITY:||-|
|Share capital|230,600,000.00|230,600,000.00|
|Capital reserve|204,534,849.49|204,534,849.49|
|Special reserve|6,813,000.99|6,468,869.88|
|Surplus reserve|318,603,562.42|318,603,562.42|
|Unappropriated profits|648,169,086.85|668,694,122.38|
|TOTAL SHAREHOLDERS' EQUITY|1,408,720,499.75|1,428,901,404.17|
|TOTAL LIABILITIES AND SHAREHOLDERS'EQUITY|3,945,361,954.05|4,182,082,760.76|

3.Income Statements
Consolidated Currency: RMB
||||
|-|-|-|
|Items|Current Period|Same Period Last Year|
|I. Total operating income|356,763,898.79|331,048,288.65|
|Including: Operating income|356,763,898.79|331,048,288.65|
|Less: Total operating costs|337,244,721.32|304,779,907.33|
|Including: Operating costs|156,076,406.18|143,269,502.63|
|Business taxes and levies|32,659,574.83|18,867,639.42|
|Selling expenses|252,176.88|917,022.63|
|General and administrative expenses|58,031,246.43|55,345,349.17|
|Financial expenses|90,232,036.89|86,362,478.62|
|Impairment losses of assets|-6,719.89|17,914.86|
|Add: Investment income|17,027,845.39|14,962,394.28|
|Including: Income from investments in associates and joint ventures|17,027,845.39|13,758,166.75|
|II. Operating profit|36,547,022.86|41,230,775.60|
|Add: Non-operating income|2,769,634.48|2,702,848.88|
|Including: Gains from disposal of non-current assets|74,068.43|27,777.65|
|Less: Non-operating expenses|339,295.44|851,692.02|
|Including: Losses from disposal of non-current assets|4,086.00|36,978.43|
|III. Gross profit|38,977,361.90|43,081,932.46|
|Less: Income tax expenses|18,517,694.33|12,085,315.99|
|IV. Net profit|20,459,667.57|30,996,616.47|
|Net profit attributable to owners of the Company|11,067,703.47|20,104,453.49|
|Profit or loss attributable to minority shareholders|9,391,964.10|10,892,162.98|
|V. Post-tax net value of other comprehensive income||0.00|
|Post-tax net value of other comprehensive income attributable to owners ofthe Company||0.00|
|Including: Translation differences arising on translation of financialstatements denominated in foreign currencies||0.00|
|Post-tax net value of other comprehensive income attributable to minorityshareholders||0.00|
|VI. Total comprehensive income:|20,459,667.57|30,996,616.47|
|Total comprehensive income attributable to owners of the Company|11,067,703.47|20,104,453.49|
|Total comprehensive income attributable to minority shareholders|9,391,964.10|10,892,162.98|
|VII. Earnings per share:|||
|(I) Basic earnings per share|0.05|0.09|
|(II) Diluted earnings per share|Not applicable|Not applicable|

 Legal Representative: Tian Junyan Chief financialofficer：Yu Zhongxia Financialmanager：Sun Yuhui
4.Income Statements
Parent company Currency: RMB
||||
|-|-|-|
|Items|Current Period|Same Period Last Year|
|I. Operating income|70,879,580.33|68,844,361.06|
|Less: Operating costs|41,945,992.95|45,529,220.40|
|Business taxes and levies|1,354,137.66|1,666,673.87|
|General and administrative expenses|15,161,220.96|17,990,662.26|
|Financial expenses|50,153,808.12|44,955,212.43|
|Impairment loss of assets||-35,125.53|
|Add: Investment income|17,027,845.39|14,962,394.28|
|Including: Income from investments in associates and joint ventures|17,027,845.39|13,758,166.75|
|II. Operating profit|-20,707,733.97|-26,299,888.09|
|Add: Non-operating income|187,444.02|26,125.02|
|Including: Gains from disposal of non-current assets|66,896.90||
|Less: Non-operating expenses|4,745.58|117,787.56|
|Including: Losses from disposal of non-current assets|1,843.85|1,000.00|
|III. Gross profit|-20,525,035.53|-26,391,550.63|
|Less: Income tax expenses||-9,868,962.60|
|IV. Net profit|-20,525,035.53|-16,522,588.03|
|V. Other comprehensive income|||
|VI. Total comprehensive income|-20,525,035.53|-16,522,588.03|
|VII. Earnings per share:|||
|(I) Basic earnings per share|Not applicable|Not applicable|
|(II) Diluted earnings per share|Not applicable|Not applicable|

5.Cash Flow Statements
Consolidated Currency: RMB
||||
|-|-|-|
|Items|Current Period|Same Period Last Year|
|I. Cash Flows from Operating Activities:|||
|Cash receipts from sales of goods and rendering of services|347,898,552.59|340,836,855.86|
|Refund of tax and levies|||
|Other cash receipts relating to operating activities|15,908,870.63|16,961,342.77|
|Sub-total of cash inflows from operating activities|363,807,423.22|357,798,198.63|
|Cash payments for goods purchased and services received|62,312,837.66|64,402,911.49|
|Cash payments to and on behalf of employees|54,554,753.81|53,260,826.50|
|Payments of various taxes|78,830,702.02|67,664,546.72|
|Other cash payments relating to operating activities|26,951,385.64|21,359,814.12|
|Sub-total of cash outflows from operating activities|222,649,679.13|206,688,098.83|
|Net Cash Flows from Operating Activities|141,157,744.09|151,110,099.80|
|II. Cash Flows from Investing Activities:|-|-|
|Cash receipts from investment income||12,908,798.55|
|Net cash receipts from disposal of fixed assets, intangible assets and other long-termassets|105,485.00|84,062.00|
|Other cash receipts relating to investing activities|2,429,524.80|257,590,350.00|
|Sub-total of cash inflows from investing activities|2,535,009.80|270,583,210.55|
|Cash payments to acquire or construct fixed assets, intangible assets and otherlong-term assets|423,128,715.28|513,233,238.63|
|Cash payments to acquire investments|2,000,000.00||
|Net cash outflows of procurement of subsidiaries and other business units||254,014,920.01|
|Other cash payments relating to investing activities|42,144.00|45,000,000.00|
|Sub-total of cash outflows from investing activities|425,170,859.28|812,248,158.64|
|Net Cash Flows from Investing Activities|-422,635,849.48|-541,664,948.09|
|III. Cash Flows from Financing Activities:|-|-|
|Cash receipts from capital contributions||498,080,000.00|
|Cash receipts from borrowings|914,000,000.00|449,570,000.00|
|Other cash receipts relating to financing activities|1,204,000,000.00|294,000,000.00|
|Sub-total of cash inflows from financing activities|2,118,000,000.00|1,241,650,000.00|
|Cash repayments of borrowings|605,355,000.00|205,955,000.00|
|Cash payments for distribution of dividends or profits or settlement of interestexpenses|82,952,894.94|43,767,861.82|
|Other cash payments relating to financing activities|1,180,908,155.17|274,894,948.41|
|Sub-total of cash outflows from financing activities|1,869,216,050.11|524,617,810.23|
|Net Cash Flows from Financing Activities|248,783,949.89|717,032,189.77|
|IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents|-1,810.75|-|
|V. Net Increase(Decrease)in Cash and Cash Equivalents|-32,695,966.25|326,477,341.48|
|Add: Opening balance of Cash and Cash Equivalents|524,609,097.58|321,121,926.73|
|VI. Closing Balance of Cash and Cash Equivalents|491,913,131.33|647,599,268.21|

6.Cash Flow Statements
Parent company Currency: RMB
||||
|-|-|-|
|Items|Current Period|Same Period Last Year|
|I. Cash Flows from Operating Activities:|||
|Cash receipts from sales of goods and rendering of services|60,240,948.93|67,132,430.77|
|Refund of tax and levies|||
|Other cash receipts relating to operating activities|2,143,815.67|4,451,235.52|
|Sub-total of cash inflows from operating activities|62,384,764.60|71,583,666.29|
|Cash payments for goods purchased and services received|15,844,107.22|25,952,137.67|
|Cash payments to and on behalf of employees|19,749,505.52|29,028,207.27|
|Payments of various taxes|3,758,798.59|6,135,326.17|
|Other cash payments relating to operating activities|3,786,742.21|9,879,000.80|
|Sub-total of cash outflows from operating activities|43,139,153.54|70,994,671.91|
|Net Cash Flows from Operating Activities|19,245,611.06|588,994.38|
|II. Cash Flows from Investing Activities:|-|-|
|Cash receipts from investment income||12,908,798.55|
|Net cash receipts from disposal of fixed assets, intangible assets and otherlong-term assets|55,000.00|1,012.00|
|Other cash receipts relating to investing activities|285,261,087.45|459,335,570.00|
|Sub-total of cash inflows from investing activities|285,316,087.45|472,245,380.55|
|Cash payments to acquire or construct fixed assets, intangible assets andother long-term assets|8,913,446.82|2,141,437.33|
|Cash paid to acquire investments|31,419,500.00|302,376,564.58|
|Other cash payments relating to investing activities|919,832.93|138,173,595.45|
|Sub-total of cash outflows from investing activities|41,252,779.75|442,691,597.36|
|Net Cash Flows from Investing Activities|244,063,307.70|29,553,783.19|
|III. Cash Flows from Financing Activities:|-|-|
|Cash receipts from borrowings|270,000,000.00|190,000,000.00|
|Other cash receipts relating to financing activities|703,896,689.83|4,451,531.60|
|Sub-total of cash inflows from financing activities|973,896,689.83|194,451,531.60|
|Cash repayments of borrowings|541,800,000.00|201,200,000.00|
|Cash payments for distribution of dividends or profits or settlement ofinterest expenses|53,704,919.92|35,338,081.13|
|Other cash payments relating to financing activities|648,256,475.63|1,891,525.80|
|Sub-total of cash outflows from financing activities|1,243,761,395.55|238,429,606.93|
|Net Cash Flows from Financing Activities|-269,864,705.72|-43,978,075.33|
|IV. Effect of Foreign Exchange Rate Changes on Cash and CashEquivalents|||
|V．Net Increase(Decrease) in Cash and Cash Equivalents|-6,555,786.96|-13,835,297.76|
|Add: Opening balance of Cash and Cash Equivalents|14,320,382.62|28,808,779.96|
|VI. Closing Balance of Cash and Cash Equivalents|7,764,595.66|14,973,482.20|

7. Statement of Changes in Equity
Consolidated Currency: RMB
|||||||||||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||Amount for the current period||||||||||||||||Amount for the same period of last year|||||||||||||||
||||Attributable to shareholders of the Company||||||||||||||||Attributable to shareholders of the Company|||||||||||||||
||||||||Other||||||||||||||||Other|||||||||||
||||||||comprehensive||Special||||Unappropriated||Minority||Total shareholders'||||||comprehensive||Special||||Unappropriated||Minority||Total shareholders'|
||ITEM||Share capital||Capital reserve||income||reserve||Surplus reserve||profits||interests||equity||Share capital||Capital reserve||income||reserve||Surplus reserve||profits||interests||equity|
||I. Closing balance of the preceding year|230,600,000.00||234,141,186.09||652,079.14||6,774,707.73||318,603,562.42||966,064,644.53||857,253,429.68||2,614,089,609.59||230,600,000.00||234,141,186.09||652,079.14||5,941,771.48||317,245,288.81||965,504,851.33||317,006,332.01||2,071,091,508.86||
||Add: Changes in accounting policies|||||||||||||||||||||||||||||||||
||Corrections of prior period errors|||||||||||||||||||||||||||||||||
||Business combination involving entities|||||||||||||||||||||||||||||||||
||under common control|||||||||||||||||||||||||||||||||
||II. Opening balance of the current year|230,600,000.00||234,141,186.09||652,079.14||6,774,707.73||318,603,562.42||966,064,644.53||857,253,429.68||2,614,089,609.59||230,600,000.00||234,141,186.09||652,079.14||5,941,771.48||317,245,288.81||965,504,851.33||317,006,332.01||2,071,091,508.86||
||III. Changes for the year|-||-||-||436,380.02||-||11,067,703.48||9,418,587.49||20,922,670.99||||||||832,936.25||1,358,273.61||559,793.20||540,247,097.67||542,998,100.73||
||(I) Comprehensive income|-||-||-||-||-||11,067,703.48||9,391,964.09||20,459,667.57||||||||||||1,918,066.81||19,126,906.00||21,044,972.81||
|||-||-||-||-||-||-||-||-||||||||||||||521,080,000.00||521,080,000.00||
||(II) Owners' contributions and reduction in|||||||||||||||||||||||||||||||||
||capital|||||||||||||||||||||||||||||||||
||1. Capital contribution from owners|-||-||-||-||-||-||-||-||||||||||||||521,080,000.00||521,080,000.00||
|||-||-||-||-||-||-||-||-||||||||||||||||||
||2. Capital contribute from other equity|||||||||||||||||||||||||||||||||
||instrument holders|||||||||||||||||||||||||||||||||
|||-||-||-||-||-||-||-||-||||||||||||||||||
||3. Share-based payment recognised in|||||||||||||||||||||||||||||||||
||owners' equity|||||||||||||||||||||||||||||||||
||4. Others|-||-||-||-||-||-||-||-||||||||||||||||||
||(III) Profit distribution|-||-||-||-||-||-||-||-||||||||||1,358,273.61||-1,358,273.61||||||
||1. Transfer to surplus reserve|-||-||-||-||-||-||-||-||||||||||1,358,273.61||-1,358,273.61||||||
||2. General Risk Provision|-||-||-||-||-||-||-||-||||||||||||||||||
||3. Distributions to shareholders|-||-||-||-||-||-||-||-||||||||||||||||||
||4. Others|-||-||-||-||-||-||-||-||||||||||||||||||
||(IV) Transfers within owners' equity|-||-||-||-||-||-||-||-||||||||||||||||||
||1. Capitalization of capital reserve|-||-||-||-||-||-||-||-||||||||||||||||||
||2. Capitalization of surplus reserve|-||-||-||-||-||-||-||-||||||||||||||||||
||3. Loss offset by surplus reserve|-||-||-||-||-||-||-||-||||||||||||||||||
|4. Others||-||-||-||-||-||-||-||-||||||||||||||||||
||(VI) Special reserve|-||-||-||436,380.02||-||-||26,623.40||463,003.42||||||||832,936.25||||||40,191.67||873,127.92||
||1. Transfer to special reserve in the period|-||-||-||649,012.68||-||-||26,623.40||675,636.08||||||||1,505,428.41||||||49,598.61||1,555,027.02||
||2. Amount utilized in the period|-||-||-||-212,632.66||-||-||-||-212,632.66||||||||-672,492.16||||||-9,406.94||-681,899.10||
||IV. Closing balance of the current year|230,600,000.00||234,141,186.09||652,079.14||7,211,087.75||318,603,562.42||977,132,348.01||866,672,017.17||2,635,012,280.58||230,600,000.00||234,141,186.09||652,079.14||6,774,707.73||318,603,562.42||966,064,644.53||857,253,429.68||2,614,089,609.59||

8.Statement of Changes in Equity
Parent company Currency: RMB
||||||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Amount for the current period||||||||||||Amount for the same period of last year|||||||||||
|||||||||||Unappropriated||Total shareholders'||||||||||Unappropriated||Total shareholders'|
|ITEM||Share capital||Capital reserve||Special reserve||Surplus reserve||profits||equity||Share capital||Capital reserve||Special reserve||Surplus reserve||profits||equity|
|I. Closing balance of the|230,600,000.00||204,534,849.49||6,468,869.88||318,603,562.42||668,694,122.38||1,428,901,404.17||230,600,000.00||204,534,849.49||5,775,987.68||317,245,288.81||730,515,822.29||1,488,671,948.27||
|preceding year|||||||||||||||||||||||||
|Add: Changes in accounting|||||||||||||||||||||||||
|policies|||||||||||||||||||||||||
|Corrections of prior period|||||||||||||||||||||||||
|errors|||||||||||||||||||||||||
|Others|||||||||||||||||||||||||
|II. Opening balance of the|230,600,000.00||204,534,849.49||6,468,869.88||318,603,562.42||668,694,122.38||1,428,901,404.17||230,600,000.00||204,534,849.49||5,775,987.68||317,245,288.81||730,515,822.29||1,488,671,948.27||
|current year|||||||||||||||||||||||||
||||||344,131.11||-||-20,525,035.53||-20,180,904.42||||||692,882.20||1,358,273.61||-61,821,699.91||-59,770,544.10||
|III. Changes for the year|||||||||||||||||||||||||
||||||-||-||-20,525,035.53||-20,525,035.53||||||||||-60,463,426.30||-60,463,426.30||
|(I) Comprehensive income|||||||||||||||||||||||||
|(II) Owners' contributions|||||||||||||||||||||||||
|and reduction in capital|||||||||||||||||||||||||
|1. Capital contribution from|||||||||||||||||||||||||
|owners|||||||||||||||||||||||||
|2. Capital contribute from|||||||||||||||||||||||||
|other equity instrument|||||||||||||||||||||||||
|holders|||||||||||||||||||||||||
|3. Share-based payment|||||||||||||||||||||||||
|recognised in owners' equity|||||||||||||||||||||||||
|4. Others|||||||||||||||||||||||||
||||||-||-||-||||||||||1,358,273.61||-1,358,273.61||||
|(III) Profit distribution|||||||||||||||||||||||||
||||||-||-||-||||||||||1,358,273.61||-1,358,273.61||||
|1. Transfer to surplus reserve|||||||||||||||||||||||||
|2. Distributions to|||||||||||||||||||||||||
|shareholders|||||||||||||||||||||||||
|3. Others|||||||||||||||||||||||||
|(IV) Transfers within|||||||||||||||||||||||||
|owners' equity|||||||||||||||||||||||||
|1. Capitalization of capital|||||||||||||||||||||||||
|reserve|||||||||||||||||||||||||
|2. Capitalization of surplus|||||||||||||||||||||||||
|reserve|||||||||||||||||||||||||
|3. Loss offset by surplus|||||||||||||||||||||||||
|reserve|||||||||||||||||||||||||
|4. Others|||||||||||||||||||||||||
||||||344,131.11||-||-||344,131.11||||||692,882.20||||||692,882.20||
|(V) Special reserve|||||||||||||||||||||||||
|1. Transfer to special reserve|||||530,140.38||-||-||530,140.38||||||1,283,632.59||||||1,283,632.59||
|in the period|||||||||||||||||||||||||
|2. Amount utilized in the|||||186,009.27||-||-||186,009.27||||||-590,750.39||||||-590,750.39||
|period|||||||||||||||||||||||||
|IV. Closing balance of the|230,600,000.00||204,534,849.49||6,813,000.99||318,603,562.42||648,169,086.85||1,408,720,499.75||230,600,000.00||204,534,849.49||6,468,869.88||318,603,562.42||668,694,122.38||1,428,901,404.17||
|current year|||||||||||||||||||||||||

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 which China 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.
The scope of consolidated financial statements in the current period involves 52 subsidiaries. See Note (IX) "Equity in other entities" for details. Changes of scope are subsidiaries acquired in business combinations involving enterprises under common control. See Note (VIII) "Changes of consolidation scope" for details. IV. BASIS OFPREPARATIONOFFINACIALSTATEMENTS
1、Basis of Preparation of financial statements
Basis of Preparation
The Group has adopted the Accounting Standards for Business Enterprises (the "ASBEs") issued by the Ministry of Finance (the "MoF"), including standards newly issued and amended in 2014. In addition, the Group has disclosed relevant financial information in accordance with Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in 2014).
Basis of 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 the relevant requirements.
Under the historical cost measurement, asset should be measured at the value of cash or cash equivalents or fair value paid to acquire the asset, whereas liability should be measured at the value of cash or assets received due to shoulder present obligation, or at the contract amount of shouldering present obligation, or at the value of cash or cash equivalents expected to pay for the liability in routine activities.
Under the historical cost measurement, asset should be measured at the value of cash or cash equivalents or fair value paid to acquire the asset, whereas liability should be measured at the value of cash or assets received due to shoulder present obligation, or at the contract amount of shouldering present obligation, or at the value of cash or cash equivalents expected to pay for the liability in routine activities.
Pursuant to the observation of input value and the significance of the input value on the whole, measurements of fair value are divided into the below three levels:
•Level 1 input value is the unadjusted price of equivalent assets or liability which can be acquired in an active market on the measurement date.
•Level 2 input value is assets or liability except for those in Level 1, which are observable for the asset or liability, either directly or indirectly
•Level 3 input value is assets or liability which cannot be observed.
2、Going concern
Ended 30 Jun 2017, the amount of current liabilities had exceeded current assets RMB 1,734,025,433.57 in the Group. The Nanshan Group promised that he will provide any necessary financial support to keep the continuing operation. Hence, the financial statements have been prepared on a going concern basis.
V. SIGNIFICANT ACCOUNTING POLICIES, and ACCOUNTING ESTIMATES
1、 Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with the ASBEs, and present truly and completely, the Company's and consolidated financial position as of 30 June 2017 and the Company's and consolidated results of operations and cash flows for the half-year then ended in 2017.
2、 Accounting period
The Group has adopted the calendar year as its accounting year, i.e. from 1 January to 31 December.
3、Business Cycle
Buginese cycle is referred to the period from which an enterprise buys assets to manufacture to the date it achieves cash or cash equivalents.
4、Functional Currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company and its subsidiaries in the People's Republic of China (the "PRC") operate. Therefore, the Company and its PRC subsidiaries choose RMB as their functional currency. Subsidiaries not located in PRC choose HK dollar as their functional currency based on the primary economic environment. The Group adopts RMB to prepare its financial statements.
5、The accounting treatment of business combinations involving enterprises under common control and business combinations not involving enterprises under common control
Business combinations are classified into business combinations involving enterprises under common control and business combinations not involving enterprises under common control.
5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the combining enterprises are ultimately controlled by the same party or parties both before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded by the combining entities at the date of the combination. The difference between the carrying amount of the net assets obtained and the carrying amount of the consideration paid for the combination is adjusted to the share premium in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are incurred.
5.2 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business combination in which all of the combining enterprises are not ultimately controlled by the same party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree. The intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy services, etc. and other associated administrative expenses attributable to the business combination are recognized in profit or loss when they are incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities, acquired by the acquirer in a business combination, that meet the recognition criteria shall be measured at fair value at the acquisition date.
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the difference is treated as an asset and recognized as goodwill, which is measured at cost on initial recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment losses, and is presented separately in the consolidated financial statements.
6、Preparation of Consolidated Financial Statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its operating activities. Once above-mentioned essential factor changed due to relevant matters and situation change, the Group needs to reappraise the control.
The consolidation for a subsidiary is involved when the Group keeps the control, and not involved when the Group loses the control.
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.
7、Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are the Group's short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.
8、Translation of transactions and financial statements denominated in foreign currencies 8.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet date are recognized in profit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset during the capitalization period; (2) exchange differences related to hedging instruments for the
purpose of hedging against foreign currency risks are accounted for using hedge accounting; (3) exchange differences arising from available-for-sale non-monetary items (such as shares) denominated in foreign currencies and changes in the carrying amounts (other than the amortized cost) of available-for-sale monetary items are recognized as other comprehensive income.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain unchanged. Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange rate on the date the fair value is determined. Difference between the re-translated functional currency amount and the original functional currency amount is treated as changes in fair value (including changes of exchange rate) and is recognized in profit and loss or as other comprehensive income.
8.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a foreign operation are translated from the foreign currency into RMB using the following method: assets and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the balance sheet date; shareholders' equity items except for retained earnings are translated at the spot exchange rates at the dates on which such items arose; all items in the income statement as well as items reflecting the distribution of profits are translated at the spot exchange rates on the dates of the transactions; the opening balance of retained earnings is the translated closing balance of the previous year's retained earnings; the closing balance of retained earnings is calculated and presented on the basis of each translated income statement and profit distribution item. The difference between the translated assets and the aggregate of liabilities and shareholders' equity items is separately presented as the exchange differences arising on translation of financial statements denominated in foreign currencies under the shareholders' equity in the balance sheet.
Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary are translated at an exchange rate which approximates the spot exchange rate on the date of the cash flows. The effect of exchange rate changes on cash and cash equivalents is regarded as a reconciling item and presented separately in the cash flow statement as "effect of exchange rate changes on cash and cash equivalents".
The opening balances and the comparative figures of previous year are presented at the translated amounts in the previous year's financial statements.
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a foreign operation due to disposal of certain interest in it or other reasons, the Group transfers the accumulated exchange differences arising on translation of financial statements of this foreign operation attributable to the owners' equity of the Company and presented under shareholders' equity, to profit or loss in the period in which the disposal occurs. In case of a disposal or other reason that does not result in the Group losing control over a foreign operation, the proportionate share of accumulated exchange differences arising on translation of financial statements are re-attributed to minority interests and are not recognized in profit and loss. For partial disposals of equity interests in foreign operations which are associates or joint ventures, the proportionate share of the accumulated exchange differences arising on translation of financial statements of foreign operations is reclassified to profit or loss.9、Financial Instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. For
financial assets and financial liabilities at fair value through profit or loss, transaction costs are immediately recognized in profit or loss. For other financial assets and financial liabilities, transaction costs are included in their initial recognized amounts.
9.1Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group estimates future cash flows considering all contractual terms of the financial asset or financial liability (without considering future credit losses), and also considers all fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
9.2 Classification, recognition and measurement of financial assets
On initial recognition, the Group's financial assets are classified into one of the four categories, including financial assets at fair value through profit or loss, held-to-maturity investments, loans and receivables, and available-for-sale financial assets. All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
9.2.1. Financial assets at fair value through profit or loss ("FVTPL")
Financial assets at FVTPL include financial assets held for trading and those designated as at fair value through profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (i) It has been acquired principally for the purpose of selling in the near term; or (ii) On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or (iii) It is a derivative that is not designated and effective as a hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (i) Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring assets or recognizing the gains or losses on them on different bases; or (ii) The financial asset forms part of a group of financial assets or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis; (iii) Hybrid instruments associated with embedded derivatives and financial assets measured at fair value and of which changes are recorded into the profits and losses as specified in Accounting Standard for Business Enterprises No.22 - Financial Recognition and Measurement of Instruments.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in
the fair value and any dividend or interest income earned on the financial assets are recognized in profit or loss. 9.2.2 Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed maturity dates that the Group's management has the positive intention and ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from DE recognition, impairment or amortization is recognized in profit or loss.
9.2.3. Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Financial assets classified as loans and receivables by the Group include accounts receivable, interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from DE recognition, impairment or amortization is recognized in profit or loss.
9.2.4. Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognition as available for sale, and financial assets that are not classified as financial assets at fair value through profit or loss, loans and receivables or held-to-maturity investments.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising from changes in the fair value are recognized as other comprehensive income, except that impairment losses and exchange differences related to amortized cost of monetary financial assets denominated in foreign currencies are recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the available-for-sale financial assets are held, are recognized in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, and derivative financial assets which are linked to and must be settled by delivery of such unquoted equity instruments, are measured at cost.
9.3 Impairment of financial assets
The Group assesses at each balance sheet date the carrying amounts of financial assets other than those at fair value through profit or loss. If there is objective evidence that a financial asset is impaired, the Group determines the amount of any impairment loss. Objective evidence that a financial asset is impaired is evidence that, arising from one or more events that occurred after the initial recognition of the asset, the estimated future cash flows of the financial asset, which can be reliably measured, have been affected.
Objective evidence that a financial asset is impaired includes the following observable events:
(1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
(3) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the borrower; (4) It becoming probable that the borrower will enter bankruptcy or other financial reorganizations;
(5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
(6) Upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in the estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. Such observable data includes:
- Adverse changes in the payment status of borrower in the group of assets;
- Economic conditions in the country or region of the borrower which may lead to a failure to pay the group of assets;
(7) Significant adverse changes in the technological, market, economic or legal environment in which the issuer operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortized cost
If financial assets carried at amortized cost are impaired, the carrying amounts of the financial assets are reduced to the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset's original effective interest rate. The amount of reduction is recognized as an impairment loss in profit or loss. If, subsequent to the recognition of an impairment loss on financial assets carried at amortized cost, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is reversed. However, the reversal is made to the extent that the carrying amount of the financial asset at the date the impairment is reversed does not exceed what the amortized cost would have been had the impairment not been recognized.
For a financial asset that is individually significant, the Group assesses the asset individually for impairment. For a financial asset that is not individually significant, the Group assesses the asset individually for impairment or includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset (whether significant or not), it includes the asset in a group of financial assets with similar credit risk characteristics and collectively reassesses them for impairment. Assets for which an impairment loss is individually recognized are not included in a collective assessment of impairment.
- Impairment of available-for-sale financial assets
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value previously recognized directly in capital reserve is reclassified from the capital reserve to profit or loss. The amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale equity instruments is recognized as other comprehensive income, while the amount of reversal of impairment loss on available-for-sale debt instruments is recognized in profit or loss. - Impairment of financial assets measured at cost
If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the carrying amount of the financial asset is reduced to the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. The amount of reduction is recognized as an impairment loss in profit or loss. The impairment loss on such financial asset is not reversed once it is recognized.
9.4 Transfer of financial assets
The Group derecognizes a financial asset if one of the following conditions is satisfied: (1) the contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has been transferred and substantially all the risks and rewards of ownership of the financial asset is transferred to the transferee; or (3) although the financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards of ownership of the financial asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset, and it retains control of the financial asset, it recognizes the financial asset to the extent of its continuing involvement in the transferred financial asset and recognizes an associated liability. The extent of the Group's continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the transferred asset.
For a transfer of a financial asset in its entirety that satisfies the DE recognition criteria, the difference between (1) the carrying amounts of the financial asset transferred; and (2) the sum of the consideration received from the transfer and any cumulative gain or loss that has been recognized in other comprehensive income is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the respective fair values of those parts. The difference between (1) the carrying amount allocated to the part derecognized; and (2) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other comprehensive income, is recognized in profit or loss.
9.5 Classification, recognition and measurement of financial liabilities
Debt and equity instruments issued by the Group are classified into financial liabilities or equity on the basis of the substance of the contractual arrangements and definitions of financial liability and equity instrument.
On initial recognition, financial liabilities are classified into financial liabilities at fair value through profit or loss and other financial liabilities.
9.5.1 Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL consist of financial liabilities held for trading and those designated as at FVTPL on initial recognition.
A financial liability is classified as held for trading if one of the following conditions is satisfied: (1) It has been acquired principally for the purpose of repurchasing in the near term; or (2) On initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or (3) It is a derivative, except for a derivative that is a designated and effective hedging instrument, or a financial guarantee contract, or a derivative that is
linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
A financial liability may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (1) Such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring liabilities or recognizing the gains or losses on them on different bases; or (2) The financial liability forms part of a group of financial liabilities or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis; (3) Hybrid instruments associated with embedded derivatives and financial liabilities measured at fair value and of which changes are recorded into the profits and losses as specified in Accounting Standard for Business Enterprises No.22 - Recognition and Measurement of Financial Instruments.
Financial liabilities at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in the fair value or any dividend or interest expenses related to the financial liabilities are recognized in profit or loss.
9.5.2 Other financial liabilities
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, it is subsequently measured at cost. Other financial liabilities (excluding liabilities with financial guarantee contracts) are subsequently measured at amortized cost using the effective interest method, with gains or losses arising from derecognition or amortizationrecognized in profit or loss.
9.5.3. Financial guarantee contracts
A financial guarantee contract is a contract by which the guarantor and the lender agree that the guarantor would settle the debts or bear obligations in accordance with terms of the contract in case the borrower fails to settle the debts. Financial guarantee contracts that are not designated as financial liabilities at fair value through profit or loss are initially measured at their fair values less the directly attributable transaction costs. Subsequent to initial recognition, they are measured at the higher of: (i) the amount determined in accordance with Accounting Standard for Business Enterprises No. 13 - Contingencies; and (ii) the amount initially recognized less cumulative amortizationrecognized in accordance with the principles set out in Accounting Standard for Business Enterprises No. 14 - Revenue.
9.6Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of it) is discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the original financial liability with a new financial liability with substantially different terms is accounted for as an extinguishment of the original financial liability and the recognition of a new financial liability.
When the Group derecognizes a financial liability or a part of it, it recognizes the difference between the carrying amount of the financial liability (or part of the financial liability) derecognized and the consideration paid (including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
9.7 Derivatives and embedded derivatives
Derivatives are initially measured at fair value at the date when the derivative contracts are entered into and are subsequently re-measured at fair value. The resulting gain or loss is recognized in profit or loss unless the derivative is designated and highly effective as a hedging instrument, in which case the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
An embedded derivative is separated from the hybrid instrument, where the hybrid instrument is not designated as a financial asset or financial liability at fair value through profit or loss, and treated as a standalone derivative if 1) the economic characteristics and risks of the embedded derivative are not closely related to the economic characteristics and risks of the host contract; and 2) a separate instrument with the same terms as the embedded derivative would meet the definition of a derivative. If the Group is unable to measure the embedded derivative separately either at acquisition or at a subsequent balance sheet date, it designates the entire hybrid instrument as a financial asset or financial liability at fair value through profit or loss.
9.8 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset.
9.9 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. The consideration received from issuing equity instruments and net of transaction costs, are added to shareholders' equity.
All types of distributions (excluding stock dividends) made by the Group to holders of equity instruments, are deducted from shareholders' equity. The Group does not recognize any changes in the fair value of equity instruments.
10、Receivables
10.1 Receivables 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 1 million)is deemed as an individually significant receivable by the Group.|
|determining an individually||
|significant receivable||
||For receivables that are individually significant, the Group assessesthe receivables individually for impairment. For a financial asset thatis not impaired individually, the Group includes the asset in a group offinancial assets with similar credit risk characteristics and collectivelyassesses them for impairment. Receivables for which an impairmentloss is individually recognized are not included in a collectiveassessment of impairment.|
|Method of determining provision for||
|receivables that are individually||
|significant and for which bad debt||
|provision is individually assessed||

10.2 Receivables for which bad debt provision is collectively assessed on a portfolio basis:
||||
|-|-|-|
|Name of the Portfolio||Accruing Method|
|Portfolio 1 (Receivables from government, petty cash advanced to|Other methods||
|employees, security deposit, and receivables from related parties of the|||
|Company and its subsidiaries. Bad debt provision is not recognized for such|||
|receivables since the possibility of incurring bad debt losses is remote.)|||
|Portfolio 2 (mainly includes receivables arising from operating activities|Based on percentage ofaccounts balances||
|other than Portfolio 1)|||

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 of|
||Name of portfolio||||
|||||other receivables (%)|
|Portfolio 2||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 estimated futurecash flows|
|Bad debt provision methods|Standalone impairment test is carried out and impairmentlosses are recognized based on the difference between thecarrying amount and the present value of estimated futurecash flows.|

11. Inventories
11.1 Categories of inventories
The Group's inventories mainly include raw materials and maintenance accessories etc. Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase, costs of conversion and other expenditures
incurred in bringing the inventories to their present location and condition.
11.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method.
11.3 Basis for determining net 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.
12. Long-term equity investments
12.1 Basis for determining joint control and significant influence over investee
Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Joint control is the contractually agreed sharing of control over an economic activity, and exists only when the strategic financial and operating policy decisions relating to the activity require the unanimous consent of the parties sharing control. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not control or joint control over those policies. When determining whether an investing enterprise is able to exercise control or significant influence over an investee, the effect of potential voting rights of the investee (for example, warrants and convertible debts) held by the investing enterprises or other parties that are currently exercisable or convertible shall be considered.
12.2 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common control, the investment cost of the long-term equity investment is the attributable share of the carrying amount of the shareholders' equity of the acquiree at the date of combination. For a long-term equity investment acquired through business combination not involving enterprises under common control, the investment cost of the long-term equity investment is the cost of acquisition. For a long-term equity investment acquired through business combination not involving enterprises under common control and achieved in stages, the investment cost of the long-term equity investment is the aggregate of the carrying amount of the equity interest held in the acquiree prior to the acquisition date and the cost of the additional investment at the acquisition date. The long-term equity investment acquired otherwise than through a business combination is initially measured at its cost.
Other long-term equity investments acquired through methods other than business combination, shall be recorded at cost initially. According to CAS No.22– Financial Instrument Recognition and Measurement, if the investor can exert significant influence on the investee or implement co-control but not solely-control, the cost of long-term investment shall be the fair value plus the newly invested cost.
12.3 Subsequent measurement and recognition of profit or loss
12.3.1. Long-term equity investment accounted for using the cost method
For long-term equity investments over which the Group does not have joint control or significant influence and without quoted prices in an active market and that fair values cannot be reliably measured, the Group accounts for such long-term equity investments using the cost method. Besides, long-term equity investments in subsidiaries are accounted for using the cost method in the Company's separate financial statements. A subsidiary is an investee that is controlled by the Group.
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash dividends or profits already declared but not yet paid that are included in the price or consideration actually paid upon acquisition of the long-term equity investment, investment income is recognized in the period in accordance with the attributable share of cash dividends or profit distributions declared by the investee.
12.3.2. Long-term equity investment accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An associate is an entity over which the Group has significant influence and a joint venture is an entity over which the Group exercises joint control along with other investors.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to the initial investment cost. Where the initial investment cost is less than the Group's share of the fair value of the investee's identifiable net assets at the time of acquisition, the difference is recognized in profit or loss for the period, and the cost of the long-term equity investment is adjusted accordingly.
Under the equity method, the Group recognizes its share of the net profit or loss of the investee for the period as investment income or loss for the period. The Group recognizes its share of the investee's net profit or loss based on the fair value of the investee's individually identifiable assets, etc. at the acquisition date after making appropriate adjustments to conform with the Group's accounting policies and accounting period. Unrealized profits or losses resulting from the Group's transactions with its associates and joint ventures are recognized as investment income or loss to the extent that those attributable to the Group's equity interest are eliminated. However, unrealized losses resulting from the Group's transactions with its associates and joint ventures which represent impairment losses on the transferred assets are not eliminated. Changes in owners' equity of the investee other than net profit or loss are correspondingly adjusted to the carrying amount of the long-term equity investment, and recognized as other comprehensive income which is included in the capital reserve.
The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of its net investment in the investee is reduced to zero. If the Group has incurred obligations to assume additional losses of the investee, a provision is recognized according to the expected obligation, and recorded as investment loss for the period.
Where net profits are subsequently made by the investee, the Group resumes recognizing its share of those profits only after its share of the profits exceeds the share of losses previously not recognized.
12.3.3 Disposal of long-term equity investments
On disposal of a long term equity investment, the difference between the proceeds actually received and receivable and the carrying amount is recognized in profit or loss for the period. For a long-term equity investment accounted for using the equity method, the amount included in the shareholders' equity attributable to the percentage interest disposed is transferred to profit or loss for the period.
13. Investment properties
The Group uses the cost model for subsequent measurement of investment property, and adopts a depreciation or amortization policy for the investment property which is straight-line method.
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 recognized only when it is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost and the effect of any expected costs of abandoning the asset at the end of its use is considered.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable that economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss in the period in which they are incurred.
14.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method since the month subsequent to the one in which it is ready for intended use. The useful life, estimated net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
||||||||
|-|-|-|-|-|-|-|
|||Depreciation period||||Annual depreciation rate|
|Category||||Residual value rate (%)|||
|||(years)||||(%)|
|Buildings|5-50||5, 10||1.8-19||
|Port facilities|50||5||1.9||
|Machinery and equipment|3-20||5, 10||4.5-31.7||
|Transportation vehicles|3-14||5, 10||6.4-31.7||
|Fixed asset decorations|2-5||-||20-50||
|Office and other equipment|3-5||5, 10||18-31.7||

15、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 capitalized before it is ready for intended use and other relevant
costs. Construction in progress is not depreciated. Construction in progress is transferred to a fixed asset when it is ready for its intended use.
16、Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are capitalized when expenditures for such asset and borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. If construction or production of assets qualifying capitalization is interrupted abnormally for a continuous 3-month-or-above period, the capitalization of borrowing costs should be ceased until the assets resume construction or production. Other borrowing costs are recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be capitalized is the actual interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds are borrowed under general-purpose borrowings, the Group determines the amount of interest to be capitalized on such borrowings by applying a capitalization rate to the weighted average of the excess of cumulative expenditures on the asset over the amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the interest rates applicable to the general-purpose borrowings.
During capitalization period, any exchange differences of special loans in foreign currency should be capitalized, whereas exchange differences of general loans should be recorded in current profits and losses.
17、Intangible assets
17.1 Recognition, useful life and impairment tests
Intangible assets include land use rights, trademarks and software.
An intangible asset is measured initially at cost. When an intangible asset with a finite useful life is available for use, its original cost less net residual value and any accumulated impairment losses is amortized over its estimated useful life using the straight-line method. An intangible asset with an indefinite useful life is not amortized. The amortization method, years of useful life and net residual value are as follows:
||||||||
|-|-|-|-|-|-|-|
|Category||Amortization method||Useful life (year)||Net residual value (%)|
|land use rights|Straight-line method||50||-||
|trademarks|Straight-line method||10||-||
|Software|Straight-line method||3-10||-||

For an intangible asset with a finite useful life, the Group reviews the useful life and amortization method at the end of the period, and makes adjustments when necessary.
17.2 Policies of internal expenditure on research and development
For expenditures occur in the research phase, it should be recorded in current profits or losses.
An intangible asset arising from development (or from the development phase of an internal project) shall be recognised if,
and only if, an entity can demonstrate all of the following:
(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale.
(b) its intention to complete the intangible asset and use or sell it.
(c) how the intangible asset will generate probable future economic benefits. Among other things, the entity can demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset.
(d) the availability of adequate technical, financial and other resources to complete the development and to use or sell the intangible asset.
(e) its ability to measure reliably the expenditure
For expenditures thatcan’t be classified into research phase or development phase, they should be recorded in current profits and losses.
18、Long-term assets impairment
The Group assesses at each balance sheet date whether there is any indication that the long-term equity investment, investment property measured at cost method, fixed assets, construction in progress and intangible assets with a finite useful life may be impaired. If there is any indication that such assets may be impaired, recoverable amounts are estimated for such assets. Intangible assets with indefinite useful life and intangible assets not yet available for use are tested for impairment annually, irrespective of whether there is any indication that the assets may be impaired.
If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair value less costs of disposal and the present value of the future cash flows expected to be derived from the asset. If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for as an impairment loss and is recognized in profit or loss for the period.
Goodwill should be tested for impairment at least at the end of each year. For the purpose of impairment testing, goodwill is considered together with the related assets group(s), i.e., goodwill is reasonably allocated to the related assets group(s) or each of assets group(s) expected to benefit from the synergies of the combination. An impairment loss is recognized if the recoverable amount of the assets group or sets of assets groups (including goodwill) is less than its carrying amount. The impairment loss is firstly allocated to reduce the carrying amount of any goodwill allocated to such assets group or sets of assets groups, and then to the other assets of the group pro-rata on the basis of the carrying amount of each asset (other than goodwill) in the group.
Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent period.
19、Employee benefits
19.1 Accounting method for short-term employee benefits
Actually occurred short-term employee benefits are recognized as liabilities, with a corresponding charge to the profit or loss for the period or in the costs of relevant assets in the accounting period in which employees provide services to the Group. Staff welfare expenses incurred by the Group are recognized in profit or loss for the period or the costs of relevant assets based on the actually occurred amounts when it actually occurred. Non-monetary staff welfare expenses are measured at fair value.
Payment made by the Group of social security contributions for employees such as premiums or contributions on medical insurance, work injury insurance and maternity insurance, etc. and payments of housing funds, as well as union running costs and employee education costs provided in accordance with relevant requirements, are calculated according to prescribed bases and percentages in determining the amount of employee benefits and recognized as relevant liabilities, with a corresponding charge to the profit or loss for the period or the costs of relevant assets in the accounting period in which employees provide services.
19.2 Accounting method for post-employment benefits
Post-employment benefits are all defined contribution. The contribution payable to the defined contribution plan is recognized as liabilities, with a corresponding charge to the profit or loss for the period or in the costs of relevant assets in the accounting period in which employees provide services to the Group.
19.3 Accounting method for termination benefits
When the Group provides termination benefits to employees, employee benefit liabilities are recognized for termination benefits, with a corresponding charge to the profit or loss for the period at the earlier of: (1) when the Group cannot unilaterally withdraw the offer of termination benefits because of the termination plan or a curtailment proposal; and (2) when the Group recognizes costs or expenses related to restructuring that involves the payment of termination benefits.
20、Provisions
Provision can be recognized when (1) contingent events related obligations is the group's current obligation; (2) economic interests are expected to flow out from the enterprise; (3) the amount can be measured reliably.
At The balance sheet date, risks of contingent events, uncertainty and time value should be concerned and determin the amount of provison. For situations where time value makes a significant effect, use NPV as the estimate value.
If all or part of the payment of provision is expected to be compensated by a third party and the amount of compensation not exceed the carrying value of provison, then it can be recognized as an asset when it is certain that the compensation can be received.
21、 Revenue
21.1 Revenue from rendering of services
Revenue from rendering of services is recognized when (1) the amount of revenue can be measured reliably; (2) it is probable that the associated economic benefits will flow to the enterprise; (3) the stage of completion of the transaction can be determined reliably; and (4) the associated costs incurred or to be incurred can be measured reliably. Revenue from rendering of services is recognized using the percentage of completion method at the balance sheet date. The stage of completion of a transaction for rendering for services is determined based on services performed to date as a percentage of total services to be performed.
When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is recognized only to the extent of the costs incurred that will be recoverable, and the costs incurred are recognized as expenses for the period. When it is not probable that the costs incurred will be recovered, revenue is not recognized.
21.2Revenue from rendering of asset usage right
The revenue is recognized on accrual basis according to related contracts or agreements reached.
21.3 Interest income
The interest income shall be calculated based on the tenure of the Group's monetary funds used by others and the actual interest rates used.
22、Government grants
22.1 Basis of judgment and accounting methods for assets-related government grant
The Groups' government grant includes special grants for logistics park construction. As the grant relates to the final formation of assets, this grant is classified as assets-related government grant.
A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss over the useful life of the related asset.
22.2 Basis of judgment and accounting methods for income-related government grant
The Group's government grant includes governmental supporting funds and subsidies for modern logistics industry. The grant should be classified as income-related government grant.
For a government grant related to income, if the grant is a compensation for related expenses or losses to be incurred in subsequent periods, it is recognized as deferred income, and recognized in profit or loss over the periods in which the related costs are recognized. If the grant is a compensation for related expenses or losses already incurred, it is recognized immediately in profit or loss for the period.
23、Deferred Income Tax Assets/Deferred Income Tax Liabilities
The income tax expenses include current income tax and deferred income tax.
23.1 Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are measured at the amount expected to be paid (or recovered) according to the requirements of tax laws.
23.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognized as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognized using the balance sheet liability method.
Deferred tax is generally recognized for all temporary differences. Deferred tax assets for deductible temporary differences are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized. However, for temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognized.
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates, according to tax laws, that are expected to apply in the period in which the asset is realized or the liability is settled.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except when they arise from transactions or events that are directly recognized in other comprehensive income or in shareholders' equity, in which case they are recognized in other comprehensive income or in shareholders' equity; and when they arise from business combinations, in which case they adjust the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it is no longer probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to be utilized. Such reduction in amount is reversed when it becomes probable that sufficient taxable profits will be available.
23.3 Income tax offset
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax assets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and presented on a net basis.
24、Operating leases and finance leases
24.1Accounting treatment on operating leases
24.1.1 The Group as lessee under operating leases
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are either included in the cost of related asset or charged to profit or loss for the period. Initial direct costs incurred are charged to profit or loss for the period. Contingent rents are charged to profit or loss in the period in which they are actually incurred.
24.1.2 The Group as lessor under operating leases
Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the relevant lease. Initial direct costs with more than an insignificant amount are capitalized when incurred, and are recognized in profit or loss on the same basis as rental income over the lease term. Other initial direct costs with an insignificant amount are charged to profit or loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the period in which they actually arise.
25、Other material accounting policies and accounting estimations
No accounting policies or accounting estimations changes in current period.
VI、TAXES
1、Major categories of taxes and tax rates
||||||
|-|-|-|-|-|
|Category of tax||Basis of tax computation||Tax rate|
||Revenues from water andelectricity supply andmaintenance service provided bygeneral taxpayers||13%, 17%||
||Revenues from taxable servicesprovided by small-scaletaxpayers||3%||
|Value-added tax ("VAT")|||||
||Revenues from stack (storage),loading and unloading, deliveryand port management servicesprovided by general taxpayers||6%, 11%||
||Taxable revenue from renderingof services, disposal ofintangible assets or properties||3% or 5%||
|Business tax|||||
||Actual payment for VAT andbusiness taxes||5% or 7%||
|City maintenance and construction tax|||||
||Actual payment for VAT andbusiness taxes||3%||
|Education surcharge|||||
|Enterprise income tax|Taxable income||25%,16.5%,15%||
|Urban land use tax|Actual occupation of land area||RMB1.50- 10.00/square meter||
||70% to 90% of the original costof the property or rental income||1.2% of properties' residual value||
|Property tax|||||

Entities using different enterprise income tax rate:
||||
|-|-|-|
|Name of entity||Enterprise income tax rate|
||15%||
|Longquan Baowan|||
||15%||
|Xindu Baowan|||
||16.5%||
|Blogis (Hong Kong) Limited ("Baowan Hong Kong")|||
||16.5%||
|China Huitong (H.K.) Limited ("China Huitong")|||

2、Tax incentives
Pursuant to Urban Land Use Tax Policy on the Logistics Enterprises with Commodity Warehousing Facilities (Cai Shui[2017] No. 33) issued by the MoF and State Administration of Taxation ("SAT"), from 1 January 2017 to 31 December 2019, the Group as a logistics enterprise, of which land being used for commodity warehousing facilities (including owner-occupied and rental) should be levied on urban land use tax based on50% of applicable tax rate of different land grades.
Pursuant to Announcement on Implementing Preferential on Enterprise Income Tax of Encouraged Industries in the Western Region (2015 No. 14 announcement of SAT), and approved by Chengdu Longquan State Administration of Taxation (Long Guo Shui Fa[2015] No.30), Chengdu Longquan International Logistics Co., Ltd. ("Longquan Baowan"), subsidiary of the Company which locates in Chengdu, Sichuang Province, is allowed to enjoy enterprise income tax preferential policies tailored to enterprises which fits criteria of China West Development Program. From 2014 to 2020, Longquan Baowan enjoys enterprise income tax preferential rate of15%.
Pursuant to the second article of Announcement on Implementing Taxation Policies and Issues of Western Development Region (Cai Shui[2011]No.58), and approved by National Development and Reform Commission([2016] No.195), Chengdu Xindu International Logistics Co., Ltd. ("Xindu Baowan"), subsidiary of the Company which locates in Chengdu, Sichuang Province, is allowed to enjoy enterprise income tax preferential policies tailored to enterprises which fits criteria of China West Development Program. From 2016 to 2020, Xindu Baowan enjoys enterprise income tax preferential rate of15%.
VII. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1、Bank and Cash
Currency：RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening Balance|
|Cash on Hand|16,278.86|17,691.92|
|Bank Deposit|491,896,852.47|524,591,405.66|
|Total|491,913,131.33|524,609,097.58|

2、 Notes receivables
 Categories of notes receivable
Currency：RMB Yuan
||||||
|-|-|-|-|-|
||Category||Closing balance|Opening balance|
|Bank acceptances||1,400,000.00|||
|Total||1,400,000.00|||

3、 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|||
|Item|||||||||||
|||Proportion||Proportion|Net book value||Proportion||Proportion|Net book value|
||Amount||Amount|||Amount||Amount|||
|||(%)||(%)|||(%)||(%)||
|Accounts receivables for|71,534,490.72|100.00%|433,380.48|0.61%|71,101,110.24|44,302,904.98|100.00%|440,100.37|1.00%|43,862,804.61|
|which bad debt provision has|||||||||||
|been assessed by portfolios of|||||||||||
|credit risk characteristics|||||||||||
|Total|71,534,490.72|100.00%|433,380.48|0.61%|71,101,110.24|44,302,904.98|100.00%|440,100.37|1.00%|43,862,804.61|

 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
Inportfolio，accruing bad debt provision according to the percentage-of-receivablesapproach：
√Applicable□Not Applicable
Currency: RMB Yuan
|||||
|-|-|-|-|
||Closing balance|||
|Name of portfolio||||
||Carrying amount|Bad debt provision|Proportion of provision (%)|
|Accruing bad debt provision|71,534,490.72|433,380.48|0.61%|
|according to the||||
|percentage-of-receivables||||
|approach||||
|Total|71,534,490.72|433,380.48|0.61%|

（2）Provision made and reversal of Bad debt
RMB 6,719.89 of provision has been reversed.
（3）Top five enterprises of accounts receivables
Currency：RMB Yuan
|||||
|-|-|-|-|
|||Percentage of Total||
|Company|Amount||Bad debt provision|
|||Receivables (%)||
|Client 1|4,984,573.52|6.97%|35,421.55|
|Client 2|4,582,562.71|6.41%|72,270,.01|
|Client 3|3,727,143.42|5.21%|3,026.34|
|Client 4|3,726,078.08|5.21%||
|Client 5|3,579,443.75|5.00%|17,900.32|
|Total|20,599,801.48|28.80%|128,618.22|

4、Prepayments
(1) Aging analysis of prepayments is as follows:
Currency：RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Closing balance||||Opening balance|||
|Aging||Amount||Proportion (%)||Amount||Proportion (%)|
|Within 1 year|2,287,497.64||99.00%||716,387.12||95.77%||
|1-2 years|600.00||0.03%||3,323.66||0.44%||
|2-3 years|||0.00%||5,849.17||0.78%||
|More than 3 years|22,504.50||0.97%||22,504.50||3.01%||
|Total|2,310,602.14||--||748,064.45||--||

5、Interests receivable
(1) Interests receivable by categories
Currency：RMB Yuan
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Fixed deposits|363,407.67||423,404.92||
|Financing product|||||
|Total|363,407.67||423,404.92||

6、Other Receivables
（1）Disclosure of other receivables by categories:
Currency：RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing Balance|||||Opening Balance|||||
||Carrying amount||Bad debt provision|||Carrying amount||Bad debt provision|||
|Item|||||||||||
|||Proportion||Proporti|Net book value||Proportion||Proporti|Net book|
||Amount||Amount||||||||
|||(%)||on (%)||Amount|(%)|Amount|on (%)|value|
|Other receivables that are|||||||||||
|individually significant|||||||||||
|and provided for bad debt|||||||||||
|individually|||||||||||
|Other receivables for|63,906,531.3|100.00%|35,881.3|0.06%|63,870,649.|63,899,488.|100.00%|35,881.3|0.06%|63,863,606.|
|which bad debt provision|7||9||98|36||9||97|
|has been assessed by|||||||||||
|portfolios of credit risk|||||||||||
|characteristics|||||||||||
|Other receivables that are|||||||||||
|not individually|||||||||||
|significant and provided|||||||||||
|for bad debt individually|||||||||||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||63,906,531.3|100.00%|35,881.3|0.06%|63,870,649.98|63,899,488.|100.00%|35,881.|3 0.06%|63,863,606.97|
|Total|||||||||||
||7||9|||36|||9||

 Other receivables that are significant in amount individually and provided for bad debt individually
□Applicable√Not Applicable
In portfolio, accurring 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|Bad debt provision|Proportion (%)|
|Accruing bad debt provision according to|63,906,531.37|35,881.39|0.06%|
|the percentage-of-receivables approach||||
|Total|63,906,531.37|35,881.39|0.06%|

（2）Disclosure of other receivables by nature:
Currency: RMB yuan
|||||
|-|-|-|-|
|Nature|Closing balance||Opening balance|
|Amount due from operating activities|15,640,245.62|16,231,215.52||
|Deposits|30,258,018.68|30,899,167.86||
|Petty cash|1,293,027.15|1,141,493.08||
|Amount due from related parties|15,398,699.66|15,360,336.60||
|Others|1,316,540.26|267,275.30||
|Total|63,906,531.37|63,899,488.36||

（3）Top five entities with the largest balances of other receivables
Currency: RMB yuan
|||||||
|-|-|-|-|-|-|
|Name of entity|Nature|Closing balance|Aging|Proportion（%）|Bad debt provision|
||Amount due from|15,333,000.00|Within 1 year|23.99%||
|Minority shareholder|||||0.00|
||related parties|||||
|Client 6|Receivables from|12,045,000.00|Over 3 year|18.85%||
||||||0.00|
||government|||||
|Client 7|Receivables from|9,010,000.00|1-2year|14.10%||
||||||0.00|
||government|||||
|Client 8|Receivables from|5,000,000.00|6 months-1year|7.82%||
||||||0.00|
||government|||||
|Client 9|Receivables from|3,000,000.00|2-3year|4.69%||
||||||0.00|
||government|||||
|Total|--|44,388,000.00|--|69.46%|0.00|

7、Inventory
（1）Categories of inventories
Currency: RMB yuan
||||||||
|-|-|-|-|-|-|-|
||Closing Balance|||Opening Balance|||
|||Provision for|||||
|Items||decline in|||Provision for||
||Gross carrying|value of|Net carrying|Gross carrying|decline in value|Net carrying|
||amount|inventories|amount|amount|of inventories|amount|
|Raw materials|390,476.40||390,476.40|606,805.98||606,805.98|
|Maintenance|390,736.58||390,736.58|355,049.74||355,049.74|
|accessories|||||||
|Total|781,212.98||781,212.98|961,855.72||961,855.72|

8、Other Current Assets
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Advance payment of taxes and fees,pending deduct VAT on purchase|23,161,678.79|14,424,379.64|
|pending deduct VAT on purchase|||
|Total|23,161,678.79|14,424,379.64|

9、Long-term equity investments
Currency: RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Changes in the current period|||||||||Closing|
|||||Investment|||||||balance|
||Opening||Decrease||Adjustment|Other|Announci|||Closing||
|Investee||||income|||||||on|
||balance|Increase in|in||on other|equity|ng cash|Provisi|Other|balance||
|||||recognized|||||||provisio|
|||investment|investme||comprehensi|chang|dividends|on|s|||
|||||by equity|||||||n|
||||nt||ve income|es|or profits|||||
|||||method||||||||
|1、Joint venture||||||||||||
|2、Associates||||||||||||
|Shenzhen|480,795,224.|||9,783,506.1||||||490,578,730.||
|Chiwan|35|||5||||||50||
|Sembawang||||||||||||
|Engineering||||||||||||
|Co.||||||||||||
|Ltd.("CSE")||||||||||||
|Shenzhen|737,557.53|||-355,958.79||||||128,262,431.||
|Chiwan||||||||||21||
|Offshore||||||||||||

||||||
|-|-|-|-|-|
|Petroleum|||||
|Engineerin|||||
|g Co,. Ltd|||||
|("CPEC")|||||
|China|120,662,133.||7,600,298.0|381,598.74|
|Developme|18||3||
|nt Finance|||||
|Co., Ltd.|||||
|("CDFC")|||||
|Sichuan||2,000,000.||2,000,000.00|
|Wenxue||00|||
|Baowan|||||
|Supply|||||
|Chain co.|||||
|LTD|||||
||602,194,915.|2,000,000.|17,027,845.|621,222,760.|
|Subtotal|||||
||06|00|39|45|
||602,194,915.|2,000,000.|17,027,845.|621,222,760.|
|Total|||||
||06|00|39|45|

10、Investment properties
（1）Investment properties measured at cost
Currency： RMB Yuan
||||||
|-|-|-|-|-|
|Item|Buildings|Land use right|Construction in progress|Total|
|I. Total original carrying|||||
|amount|||||
|1.Opening carrying amount|2,041,872,826.71|||2,041,872,826.71|
|2.Increase in the current|191,340,526.40|||191,340,526.40|
|period|||||
|(1)Purchase|||||
|(2)Transfer from|191,340,526.40|||191,340,526.40|
|Construction in Progress|||||
|(3)Increased by Merger|||||
|3.Decrease in the current|8,043,311.99|||8,043,311.99|
|period|||||
|（1）Disposal|||||
|（2）Other transfer|8,043,311.99|||8,043,311.99|
|4. Closing carrying amount|2,225,170,041.12|||2,225,170,041.12|
|II. Total accumulated|||||
|depreciation|||||

||||
|-|-|-|
|1.Opening carrying amount|435,823,488.64|435,823,488.64|
|2.Increase in the current|31,642,204.46|31,642,204.46|
|period|||
|(1) Amount accrued or|31,642,204.46|31,642,204.46|
|amortized|||
|3.Decrease in the current|||
|period|||
|（1）Disposal|||
|（2）Other transfer|||
|4. Closing carrying amount|467,465,693.10|467,465,693.10|
|III ． Total Provision for|||
|impairment losses|||
|1.Opening carrying|||
|amount|||
|2.Increase in the current|||
|period|||
|（1）Amount accrued|||
|3. Decrease in the current|||
|period|||
|（1）Disposal|||
|（2）Other transfer|||
|4. Closing carrying|||
|amount|||
|IV. Total net book value of|||
|investment properties|||
|1. Closing net book value|1,757,704,348.02|1,757,704,348.02|
|2.Openning net book value|1,606,049,338.07|1,606,049,338.07|

（2）Investment properties that have not obtained certificates
Currency：RMB Yuan
||||||
|-|-|-|-|-|
|Item||Net book value||Reasons for not obtained certificates|
||344,746,309.47||Settlement procedures are still in progress||
|Buildings|||||
||110,185,703.14||Properties are built on leased land from Nanshan Group not obtainthe use right certificate of the mentioned land.||
|Buildings|||||

11、Fixed assets
（1）Details of fixed assets are as follows:
Currency：RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||||||Office and||
||||Machinery and|Transportation|Fixed assets|||
|Item|Buildings|Port facilities||||other|Total|
||||equipment|vehicles|decorations|||
|||||||equipment||
|I. Total original||||||||
|carrying||||||||
|amount||||||||
|1.Opening|934,353,609.79|46,462,519.33|169,462,689.06|21,601,213.89|13,767,664.19|101,832,702.22|1,287,480,398.|
|carrying|||||||48|
|amount||||||||
|2.Increase in|189,004,068.02||12,998,190.39|470,658.23||4,927,343.57|207,400,260.21|
|the current||||||||
|period||||||||
|(1)Purchase|||268,046.64|470,658.23||4,927,343.57|5,666,048.44|
|(2)Transfer|189,004,068.02||12,730,143.75||||201,734,211.77|
|from||||||||
|Construction in||||||||
|Progress||||||||
|(3)Increase by||||||||
|Mergering||||||||
|3.Decrease in|||779,796.01|666,004.00||816,158.71|2,261,958.72|
|the current||||||||
|period||||||||
|（1）Disposal|||779,796.01|666,004.00||816,158.71|2,261,958.72|
|4. Closing|1,123,357,677.|46,462,519.33|181,681,083.44|21,405,868.12|13,767,664.19|105,943,887.08|1,492,618,699.|
|carrying|81||||||97|
|amount||||||||
|II. Total||||||||
|accumulated||||||||
|depreciation||||||||
|1.Opening|187,087,059.71|36,079,112.25|94,223,178.48|15,289,644.32|13,767,664.19|63,937,642.89|410,384,301.84|
|carrying||||||||
|amount||||||||
|2.Increase in|22,292,658.91|454,710.66|6,307,785.91|1,117,502.56||3,109,508.66|33,282,166.70|
|the current||||||||
|period||||||||
|(1) Amount|22,292,658.91|454,710.66|6,307,785.91|1,117,502.56||3,109,508.66|33,282,166.70|
|accrued or||||||||
|amortized||||||||
|3.Decrease in|0.00||732,408.93|632,703.80||798,749.27|2,163,862.00|
|the current||||||||
|period||||||||
|（1）Disposal|0.00||732,408.93|632,703.80||798,749.27|2,163,862.00|
|4. Closing|209,379,718.62|36,533,822.91|99,798,555.46|15,774,443.08|13,767,664.19|66,248,402.28|441,502,606.54|
|carrying||||||||

|||||||||
|-|-|-|-|-|-|-|-|
|amount||||||||
|III ． Total||||||||
|Provision for||||||||
|impairment||||||||
|losses||||||||
|1.Opening||||||||
|carrying||||||||
|amount||||||||
|2.Increase in||||||||
|the current||||||||
|period||||||||
|（1）Amount||||||||
|accrued||||||||
|3.Decrease in||||||||
|the current||||||||
|period||||||||
|（1）Disposal||||||||
|4. Closing||||||||
|carrying||||||||
|amount||||||||
|IV. Total net||||||||
|book value of||||||||
|investment||||||||
|properties||||||||
|1. Closing net|913,977,959.19|9,928,696.42|81,882,527.98|5,631,425.04|0.00|39,695,484.80|1,051,116,093.|
|book value|||||||43|
|2.Openning|747,266,550.08|10,383,407.08|75,239,510.58|6,311,569.57||37,895,059.33|877,096,096.64|
|net book value||||||||

（2）Fixed assets that have not obtained certificates
Currency：RMB Yuan
||||
|-|-|-|
|Item|Net book value|Reasons for not obtained certificates|
|Buildings|17,763,314.11|Settlement procedures are still in progress|
|||Properties are built on leased land from Nanshan Group not|
|Buildings|3,708,500.90||
|||obtain the use right certificate of the mentioned land.|

12、Construction in progress
（1）Details of construction in progress are as follows:
Currency：RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing balance|||Opening balance|||
|Item|Carrying|Provision for|Net carrying||Provision for|Net carrying|
|||||Carrying amount|||
||amount|impairment|amount||impairment losses|amount|

|||||||
|-|-|-|-|-|-|
|||losses||||
|Bingang Blogis Park|62,030,875.34||62,030,875.34|59,149,313.16|59,149,313.16|
|Zhenjiang Warehouse|162,582.46||162,582.46|151,999,058.12|151,999,058.12|
|Blogis Park||||||
|Wuxi Blogis Park|125,402.03||125,402.03|157,642.00|157,642.00|
|Jiaozhou Blogis Park|204,942,027.80||204,942,027.80|172,495,930.90|172,495,930.90|
|Shenyang Blogis Park|646,090.10||646,090.10|646,090.10|646,090.10|
|Xi’an Blogis Park|1,279,945.17||1,279,945.17|823,660.36|823,660.36|
|Xianyang Blogis Park|20,368,572.40||20,368,572.40|2,215,162.70|2,215,162.70|
|Qingwu Blogis Park|120,000.00||120,000.00|120,000.00|120,000.00|
|Jiaxing Blogis Park|10,982,756.10||10,982,756.10|44,562,016.70|44,562,016.70|
|Jiangyin Blogis Park|11,170,396.56||11,170,396.56|70,843.00|70,843.00|
|Feidong Blogis Park|7,595,764.55||7,595,764.55|292,789.91|292,789.91|
|Chengdu oil and gas|27,457,555.68||27,457,555.68|6,499,857.37|6,499,857.37|
|base project||||||
|Beijing Konggang|0.00||0.00|145,962,022.82|145,962,022.82|
|Blogis Park||||||
|Ezhou Blogis Park|29,526,301.89||29,526,301.89|518,070.48|518,070.48|
|Shaoxing Blogis Park|505,702.21||505,702.21|411,154.06|411,154.06|
|Yangluo Blogis Park|173,223.62||173,223.62|173,223.62|173,223.62|
|Xipeng Blogis Park|103,820.22||103,820.22|21,962.67|21,962.67|
|Xitong Blogis Park|9,268,071.02||9,268,071.02|10,000.00|10,000.00|
|Deqing Blogis Park|21,433,577.00||21,433,577.00|||
|Other miscellaneous|17,225,203.10||17,225,203.10|15,778,166.65|15,778,166.65|
|constructions||||||
|Total|425,117,867.25||425,117,867.25|601,906,964.62|601,906,964.62|

（2）Details of construction in progress are as follows:
Currency：RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Amount||||||
||||||||injected||||||
||||||||||Amount of|Including:|Interest|Source|
||||||Decreased in||as a||||||
|||Opening|Increase in the|Transferred to||Closing||Construction|accumulated|capitalized|capitalization||
|Item|Budget amount||||the current||proportion|||||of|
|||balance|current period|fixed assets||balance||progress|capitalized|interest for|rate for the||
||||||period||of budget|||||funds|
||||||||||interest|the period|period (%)||
||||||||amount||||||
||||||||(%)||||||
|Bingang Blogis Park|343,600,000.00|59,149,313.16|2,881,562.18|||62,030,875.34|18.05%|18.05%|7,730,707.04|2,078,920.45|5.16%||
|ZhenjiangWarehouse|362,220,000.00|151,999,058.12|10,307,450.00|87,535,984.32|74,607,941.34|162,582.46|44.81%|44.81%|||||
|Blogis Park|||||||||||||
|Wuxi Blogis Park|361,530,000.00|157,642.00||32,239.97||125,402.03|0.03%|0.03%|||||
|Jiaozhou Blogis|274,000,000.00|172,495,930.90|32,446,096.90|||204,942,027.80|74.80%|74.80%|3,318,371.91|2,920,363.67|4.35%||
|Park|||||||||||||
|Shenyang Blogis|433,240,000.00|646,090.10||||646,090.10|0.15%|0.15%|||||
|Park|||||||||||||
|Xi’an Blogis Park|448,120,000.00|823,660.36|456,284.81|||1,279,945.17|0.29%|0.29%|||||
|Xianyang Blogis|549,780,000.00|2,215,162.70|18,153,409.70|||20,368,572.40|3.70%|3.70%|||||
|Park|||||||||||||
|Qingwu Blogis Park|279,060,000.00|120,000.00||||120,000.00|||||||
|Yangluo Blogis Park|163,980,000.00|173,223.62||||173,223.62|||||||
|Jiaxing Blogis Park|193,690,000.00|44,562,016.70|17,624,529.25|18,808,585.48|32,395,204.37|10,982,756.10|32.11%|32.11%|203,880.33|203,880.33|4.75%||
|Jiangyin Blogis Park|267,280,000.00|70,843.00|11,099,553.56|||11,170,396.56|4.18%|4.18%|||||
|Feidong Blogis Park|228,530,000.00|292,789.91|7,302,974.64|||7,595,764.55|3.32%|3.32%|||||
|Chengdu oil and gas|820,000,000.00|6,499,857.37|20,957,698.31|||27,457,555.68|3.35%|3.35%|||||
|base project|||||||||||||

||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Beijing Konggang|35,110,000.00|145,962,022.82|12,914,884.76|82,493,453.63|76,383,453.95||100.00%|100.00%|1,260,729.17|554,166.67|4.75%||
|Blogis Park|||||||||||||
|Ezhou Blogis Park|525,000,000.00|518,070.48|29,008,231.41|||29,526,301.89|5.62%|5.62%|||||
|Shaoxing Blogis|356,000,000.00|411,154.06|94,548.15|||505,702.21|0.14%|0.14%|||||
|Park|||||||||||||
|Xipeng Blogis Park|375,000,000.00|21,962.67|81,857.55|||103,820.22|0.03%|0.03%|||||
|Xiting Blogis Park|213,000,000.00|10,000.00|9,258,071.02|||9,268,071.02|4.35%|4.35%|||||
|Deqing Blogis Park|190,000,000.00||21,433,577.00|||21,433,577.00|11.28%|11.28%|||||
|Other miscellaneous||15,778,166.65|17,955,383.56||16,508,347.11|17,225,203.10||Not|||||
|constructions||||||||applicable|||||
|Total|6,419,140,000.00|601,906,964.62|211,976,112.80|188,870,263.40|199,894,946.77|425,117,867.25|--|--|12,513,688.45|5,757,331.12||--|

13. Disposal of Fixed Assets
Currency： RMB Yuan
||||
|-|-|-|
|Item|Closing Balance|Opening Balance|
|Disposal|15,835.78||
|Total|15,835.78||

14. Intangible Assets
（1）Details of intangible assets
Currency： RMB Yuan
||||||||
|-|-|-|-|-|-|-|
|Item|Land use rights|patent rights|Non-Patents|Trademarks|Software|Total|
|I. Total original carrying|||||||
|amount|||||||
|1.Opening carrying|2,733,015,122.16|||439,046.42|3,098,409.44|2,736,552,578.02|
|amount|||||||
|2.Increase in the|85,512,605.13||||7,523,681.81|93,036,286.94|
|current period|||||||
||85,512,605.13||||7,523,681.81|93,036,286.94|
|(1) Purchase|||||||
|(2) Internal research and|||||||
|development|||||||
|(3) Increase by|||||||
|Mergering|||||||
|3. Decrease in the|||||||
|current period|||||||
|(1) Disposal|||||||
|4.Closing carrying|2,818,527,727.29|||439,046.42|10,622,091.25|2,829,588,864.96|
|amount|||||||
|II. Total accumulated|||||||
|amortization|||||||
|1.Opening carrying|489,397,565.17|||244,910.09|1,698,446.41|491,340,921.67|
|amount|||||||
|2.Increase in the|30,886,902.88|||11,687.34|176,144.72|31,074,734.94|
|current period|||||||
|(1) Amortization|30,886,902.88|||11,687.34|176,144.72|31,074,734.94|
|accrued|||||||
|3.Decrease in the|||||||
|current period|||||||
|(1) Disposal|||||||
|4.Closing carrying|520,284,468.05|||256,597.43|1,874,591.13|522,415,656.61|
|amount|||||||
|III．Total Provision for|||||||
|impairment losses|||||||
|1.Opening carrying|||||||
|amount|||||||
|2.Increase in the|||||||
|current period|||||||
|(1) Amount accrued|||||||
|3.Decrease in the|||||||
|current period|||||||

||||||
|-|-|-|-|-|
|(1) Disposal|||||
|4.Closing carrying|||||
|amount|||||
|IV. Total net book value|||||
|1. Closing net book|2,298,243,259.24|182,448.99|8,747,500.12|2,307,173,208.35|
|value|||||
|2.Openning net|2,243,617,556.99|194,136.33|1,399,963.03|2,245,211,656.35|
|book value|||||

（2）Intangible assets that have not obtained certificates
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|Item||Net book value||Reasons for not obtained certificates|
|Land use rights|259,820,153.90||Note 1||
|Land use rights|7,342,445.28||Note 2||

 Note 1: Land use right and dock use right are assets leased from Nanshan Group, the controlling shareholder of the Company. In 1984, Nanshan Group contributed the land use right and dock use right for 25 years as the investment capital to the Company. The term of the use rights expired on 15 July 2009. On 18 July 2006, the Company and Nanshan Group entered intoAgreement on Land Use, which specifies that the Company can continue to lease the land and dock by means of operating lease after the expiration. The lease term is 25 years that starts from 15 July 2009 and ends on14 July 2034. The Company has paid off all the rentals in a lump sum. As at 30 June 2017 Nanshan Group has not obtained the use right certificate of the above mentioned land and dock.
Note 2: Use right of the eastern land is an asset leased from Nanshan Group, the controlling shareholder of the Company, by means of operating lease in 1997. The lease term is 25 years from 1 August 1997 to 31 July 2022. The Company has paid off all the rentals in a lump sum. Given that Nanshan Group has not obtained the use right certificateof the mentioned land, in addition to the guarantee of the Company's legal use right on the land, Nanshan Group entered into an Agreementon Immunity from Liabilities Caused by the Land Use with the Company on 18 July 1997, agreeing to compensate the Company for any losses, expenditures and liabilities associated with the leased land. As at 30 June 2017 Nanshan Group has not obtained use right certificate of the above mentioned land and dock.
15、Development Expenditure
||||||
|-|-|-|-|-|
||Opening|||Closing|
|Item||Increase in the current period|Decrease in the current period||
||Balance|||Balance|
|Warehouse|||||
|management|920,050.29|656,587.14|937,350.09|639,287.34|
|system|||||
|SAP software|410,624.13|1,033,840.38||1,444,464.51|
|Total|1,330,674.42|1,690,427.52|937,350.09|2,083,751.85|

16. Goodwill
||||||
|-|-|-|-|-|
|Acquired entities|||||
||Opening|||Closing|
|or events that||Increase in the current period|Decrease in the current period||
||Balance|||Balance|
|cause goodwill|||||
|Tianjin Haier|||||
|Management co.|11,133,118.55|||11,133,118.55|
|LTD|||||
|Total|11,133,118.55|||11,133,118.55|

17、Deferred Tax Assets and Deferred Tax Liabilities
（1）Deferred tax assets that are not offset
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Closing Balance||Opening Balance||
|Item|Deductible temporary||Deductible temporary||
|||Deferred tax assets||Deferred tax assets|
||differences||differences||
|Provision for impairment|184,053.76|46,013.44|233,708.00|45,201.65|
|losses of assets|||||
|Deductible losses|125,324,634.08|31,331,158.52|97,090,341.05|24,272,585.27|
|Impairment in|29,181,977.84|7,295,494.46|29,181,977.84|7,295,494.46|
|revaluation of acquired|||||
|entities not under|||||
|common control|||||
|Total|154,690,665.68|38,672,666.42|126,506,026.89|31,613,281.38|

（2）Deferred tax liabilities that are not offset
||||||
|-|-|-|-|-|
||Closing Balance||Opening Balance||
|Item|Taxable temporary||Taxable temporary||
|||Deferred tax liabilities||Deferred tax liabilities|
||differences||differences||
|Appreciation in|61,437,303.56|15,359,325.89|62,066,365.68|15,516,591.42|
|revaluation of acquired|||||
|entities not under|||||
|common control|||||
|Total|61,437,303.56|15,359,325.89|62,066,365.68|15,516,591.42|

（3）Deferred tax assets and deferred tax liabilities that are presented at net value after offsetting Currency: RMB Yuan
||||||
|-|-|-|-|-|
|||Closing balance of||Opening balance of|
||Offsetting amounts at||Offsetting amounts at||
|Item||deferred tax assets or||deferred tax assets or|
||closing date||opening date||
|||deferred tax liabilities||deferred tax liabilities|

||||||
|-|-|-|-|-|
|||after offsetting||after offsetting|
|Deferred tax assets|-7,295,494.46|31,377,171.96|-7,295,494.46|24,317,786.92|
|Deferred tax liabilities|7,295,494.46|22,654,820.35|7,295,494.46|22,812,085.88|

（4）Details of unrecognized deferred tax assets
Currency: RMB Yuan
||||
|-|-|-|
|Item|Closing Balance|Opening balance|
|Deductible temporary difference|290,161.32|290,161.32|
|Deductible losses|256,116,135.34|217,901,282.72|
|Total|256,406,296.66|218,191,444.04|

（3）Deadline of deductible losses of unrecognized deferred tax assets
Currency: RMB Yuan
|||||
|-|-|-|-|
|Years|Closing Balance|Opening balance|Notes|
|Deductible losses without|110,890,988.33|92,822,732.48|It refers to the accumulated loss of Baowan|
|deadline|||Hong Kong and China Huitong.|
||831,022.59|831,022.59|It refers to the accumulated loss of the|
|2019||||
||||Company|
||38,627,080.46|38,627,080.46|It refers to the accumulated loss of the|
|2020||||
||||Company|
||85,620,447.19|85,620,447.19|It refers to the accumulated loss of the|
|2021||||
||||Company|
||20,436,758.09||It refers to the accumulated loss of the|
|2022||||
||||Company|
|Total|256,406,296.66|217,901,282.72|--|

18. Other non-current assets
Currency： RMB Yuan
||||
|-|-|-|
|Item|Closing Balance|Opening Balance|
||610,136,328.02|567,480,000.00|
|Payments for assets (note 1)|||
||441,212,200.70|311,733,581.18|
|Prepayments for land use rights (note 2)|||
|Refundable deposits for land use rights (note|26,115,124.80|38,954,624.80|
|3)|||
|||6,690,456.61|
|Prepayments for software installation (note 4)|||
||5,970,923.65|6,049,099.01|
|Others|||
|Total|1,083,434,577.17|930,907,761.60|

Note 1: Closing balance represents assets prepayments by Baowan Logistics Holdings Co., Ltd. ("Baowan Holdings"), subsidiary of the Company.
Note 2: Closing balance represents Prepayments for land use rights by Yangluo Baowan, Xianyang Baowan, Xipeng Baowan, Changsha Yuhua Baowan Logistics Co., Ltd ("Yuhua Baowan"), Ningbo Baowan International Logistics Co., Ltd. ("NingboBaowan")，Chongqing Luohuang Baowan International Logistics Co., Ltd.("Luohuang Baowan"), Changsha Wangcheng Baowan Logistics Co., Ltd ("WangchengBaowan")，Wuhan Qingshan Baowan Logistics Co., Ltd("QingshanBaowan")，subsidiaries of the Company.
Note 3: Closing balance represents refundable deposits for land use rights paid by Jiaxing Baowan, Jiaxing Supply Chain,Yuyao Baowan Logistics Co., Ltd. ("Yuyao Baowan"), Jiashan Baowan Logistics Co., Ltd ("Jiashan Baowan"), subsidiaries of the Company.
Note 4: Closing balance represents prepayments for software installation by Kunshan Baowan International Logistics Co., Ltd ("Kunshan Baowan") , subsidiary of the Company.
19. Short-term Borrowings
（1）Classification of short-term borrowings
Currency： RMB Yuan
||||
|-|-|-|
|Item|Closing Balance|Opening Balance|
|Guaranteed borrowings|644,000,000.00|50,000,000.00|
|Credit borrowings|930,000,000.00|800,000,000.00|
|Total|1,574,000,000.00|850,000,000.00|

20、Notes payable
Currency： RMB Yuan
||||
|-|-|-|
|Item|Closing Balance|Opening Balance|
|Trade acceptance|35,891,264.20|16,200,019.20|
|Total|35,891,264.20|16,200,019.20|

 The amount of unpaid mature notes is 0.
21、Accounts Payable
（1）Details of accounts payable are as follows:
Currency: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Rents|12,757,364.46|7,274,685.37|
|Allowances for repairs and maintenance|2,328,997.63|1,899,243.70|
|Service charges|852,171.99|727,374.70|
|Others||1,599,201.26|
|Total|15,938,534.08|11,500,505.03|

22、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|6,694,000.98||8,998,939.24||
|Others|55,008.00||186,125.80||
|Total|6,749,008.98||9,185,065.04||

23、Employee benefits payable
（1）Details of employee benefits payable are as follows
Currency: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Opening||Increase in the||Decrease in the|||
|Item||||||||Closing balance|
|||balance||current period||current period|||
|I. Short-term compensation|21,147,173.58||47,998,257.05||51,682,825.06||17,462,605.58||
|II. Post-employment benefits-defined|15,744.32||3,449,812.74||3,450,775.30||14,781.76||
|contribution plans|||||||||
|III. Termination benefits|||199,806.06||199,806.06||||
|IV. Other welfare due within one year|||||||||
|Total|21,162,917.90||51,647,875.85||55,333,406.42||17,477,387.34||

（2）Short-term Compensation
Currency: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|||Opening||Increase in the||Decrease in the|||
|Item||||||||Closing balance|
|||balance||current period||current period|||
|I. Wages or salaries, bonuses,|20,628,167.59||42,727,455.54||46,552,086.76||16,803,536.38||
|allowances and subsidies|||||||||
|II. Staff welfare|||1,145,746.45||1,035,946.43||109,800.02||
|III. Social security contributions|7,697.14||1,562,352.17||1,562,783.58||7,265.73||
|Including: Medical insurance|5,957.83||1,304,975.89||1,305,283.67||5,650.05||
|Work-related injury insurance|1,326.76||138,316.62||138,432.92||1,210.46||
|Birth insurance|412.55||119,059.66||119,066.99||405.22||

||||||
|-|-|-|-|-|
|IV. Housing funds|667.00|1,818,332.36|1,818,332.36|667.00|
|V. Expenditure for trade union and|510,641.85|744,370.53|713,675.93|541,336.45|
|employee training|||||
|Total|21,147,173.58|47,998,257.05|51,682,825.06|17,462,605.58|

（3） Post-employment benefits- defined contribution plans
Currency: RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Increase in thecurrent period||Decrease in the|||
|Item||Opening balance||||||Closing balance|
|||||||current period|||
|I. Basic endowment insurance|14,983.68||3,361,245.47||3,361,852.61||14,376.54||
|II. Unemployment insurance|760.64||88,567.27||88,922.69||405.22||
|Total|15,744.32||3,449,812.74||3,450,775.30||14,781.76||

 Note: The Group participates in the social security contributions and the unemployment insurance plan established by government institutions as required. According to such plans, the Company and its subsidiaries contributes amounts according to local supervision agency's requirement respectively to such plans. The Group does not undertake further payment obligations other than the above monthly contributions. Corresponding expenses are charged to profit or loss for the period or costs of the related assets when incurred.
Ended 30 Jun 2017 the Group had contributed RMB 3,361,245.47 and RMB 88,567.27 respectively to the social security contributions and the unemployment insurance plan(2016: RMB 6,780,550.96 and RMB 197,928.73). As at 30 Jun 2017, the Group still have outstanding contributions of RMB 14,376.54 and RMB 405.22 (31 December 2016: RMB 14,983.68 and RMB 760.64) to be paid to the social security contributions and the unemployment insurance plan. The related outstanding contributions have been made after the reporting period.24、Taxes payable
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Value Added Tax|3,973,826.95|3,614,107.55|
|Corporate Income Tax|14,430,906.40|13,910,953.26|
|Individual Income Tax|244,102.99|226,153.20|
|Urban Maintenance & Construction Tax|183,612.85|235,320.44|
|Land-use Tax|4,102,808.81|5,146,891.43|
|Property Tax|4,536,533.67|6,020,749.61|
|Educational Surcharges|126,979.57|172,408.79|
|Others|952,475.11|781,150.17|
|Total|28,551,246.35|30,107,734.45|

25、Interest Payable
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Long-term borrowing interest|772,235.57|3,072,061.82|
|Corporate bond interest|16,839,066.65|20,784,237.18|
|Total|17,611,302.22|23,856,299.00|

26、Other Payables
（1）Details of other payables are as follows:
Currency: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Construction costs|309,620,658.18|322,429,515.38|
|Deposits|67,029,163.52|68,669,191.97|
|Others|77,295,058.43|46,423,717.26|
|Total|453,944,880.13|437,522,424.61|

（2）Significant other payables over 1 year
||||
|-|-|-|
|Item|Closing balance|Reason for not repay or carry over|
|Supplier 1|12,985,141.62|Construction balance not reaching payment terms|
|Supplier 2|10,257,045.00|Construction balance not reaching payment terms|
|Supplier 3|10,133,058.12|Construction balance not reaching payment terms|
|Supplier 4|9,154,447.91|Construction balance not reaching payment terms|
|Supplier 5|9,003,726.41|Construction balance not reaching payment terms|
|Supplier 6|3,999,342.09|Construction balance not reaching payment terms|
|Supplier 7|3,438,677.46|Construction balance not reaching payment terms|
|Customer 16|3,330,000.00|Storage deposit not reaching payment terms|
|Customer 17|2,757,869.00|Construction balance not reaching payment terms|
|Supplier 8|2,734,107.20|Construction balance not reaching payment terms|
|Customer 18|2,450,921.40|Construction balance not reaching payment terms|
|Supplier 9|1,612,000.25|Construction balance not reaching payment terms|
|Customer 19|1,283,010.00|Construction balance not reaching payment terms|
|Customer 20|1,264,991.60|Construction balance not reaching payment terms|
|Supplier 10|1,185,738.38|Construction balance not reaching payment terms|
|Customer 21|1,120,530.00|Construction balance not reaching payment terms|
|Customer 22|1,102,930.10|Construction balance not reaching payment terms|
|Customer 23|1,015,461.58|Construction balance not reaching payment terms|
|Customer 24|1,000,000.00|Construction balance not reaching payment terms|
|Total|79,828,998.12|--|

27、Non-current liabilities due within one year
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Long-term loans due within one year|211,349,351.16|211,349,351.16|
|Bond payable due within one year||400,000,000.00|
|long-term payable due within one year|27,414,252.24|21,708,627.24|
|Tota|l 238,763,603.40|633,057,978.40|

28、Other current liabilities
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Loans borrowed from Nanshan|0.00|564,000,000.00|
|Group|||
|Total||564,000,000.00|

29、Long-term Borrowings
（1）Classification of the long-term borrowings
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Guaranteed loan|325,253,194.75|441,572,609.77|
|Credit loan|839,974,280.70|744,715,490.68|
|Total|1,165,227,475.45|1,186,288,100.45|

30、Bonds payable
（1）Details of bonds payable
Currency: RMB Yuan
||||
|-|-|-|
|Items|Closing Balance|Opening Balance|
|Corporate bond|569,382,500.00|568,641,500.00|
|Total|569,382,500.00|568,641,500.00|

（2）Changes in the current period of bonds payable
Currency: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||Issued amount||||Premium or|||
|||||||Issue|||Repa||
||||||||Accrued||||
||||Maturit||Opening|||||Closing|
|Item|Par value|Issue date||||||discount|||
|||||||in the|||y for||
||||||||interest for||||
||||y term||balance|||amortizatio||balance|
|||||||curren|||the||
||||||||the period||||
|||||||||n|||
|||||||t|||perio||

||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||period|||d||
|Corporate bond|570,000,000.0|17/12/2012||570,000,000.0|568,641,500.0||15,649,350.0|741,000.00|0.00|569,382,500.0|
||||7 years||||||||
||||||||1||||
||0|||0|0|||||0|
|Total|570,000,000.0|||570,000,000.0|568,641,500.0||15,649,350.0|741,000.00|0.00|569,382,500.0|
||||||||1||||
||0|||0|0|||||0|

31、Account payable special funds
|||||||
|-|-|-|-|-|-|
|||Increase in the|Decrease in the|Closing balance||
|Item|Opening balance||||Cause of formation|
|||current period|current period|||
|Land repurchase||||||
||||||Land repurchase|
|payment from||||||
||0.00|1,309,524.80||1,309,524.80|from Shenyang|
|Shenyang||||||
||||||Government|
|Government||||||
|Total||1,309,524.80||1,309,524.80|--|

32、Deferred income
Currency: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Increase in the|Decrease in the|||
|Item|Opening balance|||Closing balance|Cause of formation|
|||current period|current period|||
||49,599,079.39||826,035.84|48,773,043.55|Special subsidy for|
|Government Subsidy||||||
||||||purchasing fixed assets|
|Total|49,599,079.39||826,035.84|48,773,043.55|--|

Items concerning governmentsubsidy：
Currency: RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||Amountrecognized in||||
|||Increase of|||||
|||government|||Related to assets|Liabilities items|
|Liabilities items|Opening balance||non-operating|Closing balance|||
|||subsidy in the|||or revenue||
||||income in thecurrent period||||
|||current period|||||
|Wuhan Blogis|48,249,079.39||788,535.84||47,460,543.55|Related to assets|
|Park|||||||
|Guangzhou|1,350,000.00||37,500.00||1,312,500.00||
|||||||Related to assets|
|Blogis Park –Lot|||||||
|A Construction|||||||
||49,599,079.39||826,035.84||48,773,043.55|--|
|Total|||||||

33、Other non-current liabilities
Currency: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
||1,100,000,000.00|496,000,000.00|
|Medium and long-term borrowings|||
||13,988,969.48|15,018,207.18|
|Rental received in advance|||
|Total|1,113,988,969.48|511,018,207.18|

34、Share Capital
Currency: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Changes for Current Period（＋、－）||||||
|||||capitalization||||
||Opening Balance||||||Closing Balance|
|||New Issued|Bonus Share|of surplus|Others|Subtotal||
|||||reserves||||
|Total Shares|230,600,000.00||||||230,600,000.00|

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

36、Other comprehensive income
Currency: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
|||Amount for the current period||||||
||||Less：Net|||||
||||amount|||||
||||included in|||||
||||||Post-tax net|||
||Opening||other||amount|Post-tax net|Closing|
|Item||Before-tax|comprehensive|Less：||amount||
||Balance|amount for the|income in the|incom|belonging to|belonging to|Balance|
||||||parent|||
|||current period|prior periods|e tax|company|minority||
||||that is|||shareholders||
||||||owners|||
||||transferred to|||||
||||profit or loss|||||
||||for the period|||||
|II. Net amount included in other||||||||
|comprehensive income that can be||||||||
||652,079.14||||||652,079.14|
|transferred to profit or loss in the||||||||
|future||||||||
|Translation differences of financial||||||||
||652,079.14||||||652,079.14|
|statements denominated in foreign||||||||
|currencies||||||||
|Total|652,079.14||||||652,079.14|

37、Special reserve
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in the|Decrease in the||
|Item|Opening balance|||Closing balance|
|||period|period||
|Production safety fee|6,774,707.73|622,389.29|186,009.27|7,211,087.75|
|Total|6,774,707.73|622,389.29|186,009.27|7,211,087.75|

38、Surplus reserves
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|||Increase in the|Decrease in the||
|Item|Opening balance|period|period|Closing balance|
|Statutory surplus reserve|218,585,153.26|||218,585,153.26|
|Discretionary surplus reserve|100,018,409.16|||100,018,409.16|
|Total|318,603,562.42|||318,603,562.42|

39、Unappropriated profits
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for current period|Amount for prior period|
|Before adjustment: Unappropriated profits at the end of prior year|966,064,644.53|965,504,851.33|
|After adjustment: Unappropriated profits at the beginning of the year|966,064,644.53|965,504,851.33|
|Add: Net profit attributable to owners of the Company for the period|11,067,703.47|1,918,066.81|
|Less: Appropriation to statutory surplus reserve|||
|Appropriation to discretionary surplus reserve||1,358,273.61|
|Dividends paid to ordinary shares|||
|Undistributed profit at the end of the year|977,132,348.00|966,064,644.53|

40、Operating income and operating costs
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Amount recognized in the current period||Amount recognized in the prior period||
|Item|Operating income|Operating cost|Operating income|Operating cost|
|Principal operating activities|356,576,081.73|156,076,406.18|330,993,998.17|143,269,502.63|
|Other operating activities|187,817.06||54,290.48||
|Total|356,763,898.79|156,076,406.18|331,048,288.65|143,269,502.63|

41、Business Tax and Surcharges
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the prior period|
|City construction and maintenance tax|1,092,109.68|1,124,525.04|
|Education surcharges|811,337.99|863,216.39|
|Property tax|15,344,974.22|12,635,340.98|
|Land use tax|14,620,829.87|3,556,743.99|
|Others|790,323.07|687,813.02|
|Total|32,659,574.83|18,867,639.42|

42、Selling expenses
Currency: RMB Yuan
|||||
|-|-|-|-|
|Item|Amount incurred in the current period||Amount incurred in the prior period|
|Agency brokerage|252,176.88|917,022.63||
||252,176.88|917,022.63||

43、Administrative Expenses
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the prior period|
|Payroll|35,863,205.88|30,782,964.25|
|Asset depreciation|1,979,265.54|2,065,391.20|
|Asset amortization|12,075,647.47|6,882,181.50|
|Taxes||5,339,571.17|
|Business entertainment|1,364,496.99|1,200,941.26|
|Vehicle expense|905,636.87|824,987.89|
|Travelling expense|1,573,725.05|1,596,611.26|
|Others|4,269,268.63|6,652,700.64|
|Total|58,031,246.43|55,345,349.17|

44、Financial Expenses
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the prior period|
|Interest expenses|99,909,420.44|89,265,690.31|
|Less: capitalized interest expenses|5,757,331.12|1,826,715.35|
|Less: interest income|2,365,771.90|2,616,828.72|
|Exchange differences|2,794.85|309.85|
|Others|808,696.52|1,540,642.23|
|Total|90,232,036.89|86,362,478.62|

45、Impairment loss
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the prior period|
|Loss from bad debt|-6,719.89|17,914.86|
|Total|-6,719.89|17,914.86|

46、Investment income
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount recognized in the current period|Amount recognized in the prior period|
|Income from long-term equity investments|17,027,845.39|13,758,166.75|
|under equity method|||
|Income from bank financing products||1,204,227.53|
|Total|17,027,845.39|14,962,394.28|

47、Non-operating Income
Currency: RMB Yuan
|||||
|-|-|-|-|
||||Amount included in|
||Amount recognized in the|Amount recognized in||
|Item|||non-recurring profit or loss|
||current period|the prior period||
||||for the period|
|Total gains on disposal of non-current assets|74,068.43|27,777.65|74,068.43|
|Including: Gains on disposal of fixed assets|74,068.43|27,777.65|74,068.43|
|Government grants|1,503,443.61|1,721,474.24|1,503,443.61|
|Penalty gains|901,028.72|258,640.27|901,028.72|
|Others|291,093.72|694,956.72|291,093.72|
|Total|2,769,634.48|2,702,848.88|2,769,634.48|

 Details of government grants recorded into current profit or loss:
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||||Amount|Amount|Assets|
|||||Whether|||||
|||Reason for|The nature of||Whether|incurred in|incurred in|related/|
|Item|Entity|||affect current|||||
|||grants|grants||special grants|the current|the current|Income|
|||||profit or loss|||||
|||||||period|period|related|
||||subsidies||||||
||||from||||||
|Financial||||||||Income|
|||subsidies|investments|YES|NO|1,384,234.59|1,711,474.24||
|subsidies||||||||related|
||||fits criteria of||||||
||||local policies||||||
|Financial|||subsidies|||||Income|
|||incentive||YES|NO|119,209.02|10,000.00||
|incentive|||from|||||related|

||||||||||
|-|-|-|-|-|-|-|-|-|
||||investments||||||
||||fits criteria of||||||
||||local policies||||||
|Total|--|--|--|--|--|1,503,443.61|1,721,474.24|--|

48、Non-operating Expenses
Currency: RMB Yuan
|||||
|-|-|-|-|
||||Amount included in|
||Amount incurred in the|Amount incurred in the||
|Item|||non-recurring profit or loss|
||current period|prior period||
||||for the period|
|Total losses on disposal of non-current assets|4,086.00|36,978.43|4,086.00|
|Including: Losses on disposal of fixed assets|4,086.00|36,978.43|4,086.00|
|Donations|12,000.00||12,000.00|
|Penalty losses|129,681.49|664,737.28|129,681.49|
|Others|193,527.95|149,976.31|193,527.95|
|Total|339,295.44|851,692.02|339,295.44|

49、Income Tax Expenses
（1） Details of income tax expenses
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount incurred in the current period|Amount incurred in the prior period|
|Current tax expense|25,019,093.22|26,974,453.88|
|Deferred tax expense|-6,501,398.89|-14,889,137.89|
|Total|18,517,694.33|12,085,315.99|

（2）Reconciliation of income tax expenses to the accounting profit is as follows:
Currency: RMB Yuan
|||
|-|-|
|Item|Amount for the current period|
|Accounting profit|38,977,361.90|
|Income tax expenses calculated at statutory tax rate or applicable tax rate|10,656,352.01|
|Effect of different tax rates adopted by subsidiaries|-1,275,313.63|
|Effect of adjusting income tax for previous years|-86,564.24|
|Effect of tax-free income|-503,248.81|
|Effect of expenses that are not deductible for tax purposes|55,646.99|
|Effect of deductible temporary differences and deductible losses from|9,670,822.01|
|unrecognized deferred tax assets in the current period||
|Income tax expense|18,517,694.33|

50、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|Amount for the prior period|
|Interest income|2,425,455.29|2,109,786.13|
|Government grants|119,209.02|543,658.40|
|Others|13,364,206.32|14,307,898.24|
|Total|15,908,870.63|16,961,342.77|

（2）Other cash payments relating to operating activities
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Payments for administrative expense|13,504,499.79|16,236,662.53|
|Payments for deposits|6,403,128.06|2,498,042.94|
|Others|7,043,757.79|2,625,108.65|
|Total|26,951,385.64|21,359,814.12|

（3）Other cash receipts relating to investing activities
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Principal and investment income||257,235,570.00|
|from financing products|||
|Others|2,429,524.80|354,780.00|
|Total|2,429,524.80|257,590,350.00|

（4）Other cash payments relating to investing activities
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Purchase of financing products||45,000,000.00|
|Others|42,144.00||
|Total|42,144.00|45,000,000.00|

（5）Other cash receipts relating to financing activities
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Borrowing from Nanshan Group|1,204,000,000.00|294,000,000.00|

||||
|-|-|-|
|Total|1,204,000,000.00|294,000,000.00|

（6）Other cash payments relating to financing activities
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount for the current period|Amount for the prior period|
|Payments for commission of medium|1,200,000.00|1,200,000.00|
|term note|||
|Payments for the interest and principal|1,179,203,299.09|273,580,492.48|
|from Nanshan group loans|||
|Others|504,856.08|114,455.93|
|Total|1,180,908,155.17|274,894,948.41|

51、Supplementary information for the cash flow statement
（1）Details of Supplementary information for the cash flow statement
Currency: RMB Yuan
||||
|-|-|-|
|Supplementary information|Current period|Prior period|
|1. Reconciliation of net profit to cash flows from|||
||--|--|
|operating activities:|||
|Net profit|20,459,667.57|30,996,616.47|
|Add：Provision for the impairment of assets|-6,719.89|17,914.86|
|Depreciation of fixed assets, depletion of oil & gas assets|65,164,186.33|58,108,135.15|
|and productive biologic material depreciation|||
|Amortisation of intangible assets|34,529,198.86|22,752,336.51|
|Losses on disposal of fixed assets, intangible assets and|-69,982.43|9,200.78|
|other long-term assets(‘-’ for gain)|||
|Financial expenses(gains are indicated by "-")|91,862,447.77|86,786,898.42|
|Losses arising from investments (gains are indicated by "-")|-17,027,845.39|-14,962,394.28|
|Decrease in deferred tax assets (increase is indicated by "-")|-7,059,385.02|-10,440,147.95|
|Increase in deferred tax liabilities|-157,265.53||
|Decrease in inventories (increase is indicated by "-")|180,642.74|66,958.38|
|Decrease in receivables from operating activities (increase|-29,954,924.87|-23,741,607.16|
|is indicated by "-")|||
|Increase in payables from operating activities (decrease is|-16,762,276.05|1,516,188.62|
|indicated by "-")|||
|Net cash flow from operating activities|141,157,744.09|151,110,099.80|
|2．Significant investment and financing activities not|||
||--|--|
|involving receipts and disbursements:|||
|3．Net changes in cash and cash equivalents:|--|--|
|Closing balance of cash|491,913,131.33|647,599,268.21|

||||
|-|-|-|
|Less: Opening balance of cash|524,609,097.58|321,121,926.73|
|Net increase in cash and cash equivalents|-32,695,966.25|326,477,341.48|

（2）Composition of cash and cash equivalents
Currency: RMB Yuan
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|I. Cash|491,913,131.33|524,609,097.58|
|Including: Cash on hand|16,278.86|17,691.92|
|Bank deposit available for immediate|491,896,852.47|524,591,405.66|
|payment|||
|III. Closing balance of cash and cash equivalents|491,913,131.33|524,609,097.58|

52、Foreign currency monetary items
Currency: RMB Yuan
|||||
|-|-|-|-|
||Closing balance in|Exchange rate|Closing balance translate in|
|Item||||
||foreign currency||RMB|
|Bank and Cash|--|--|4,950,122.33|
|Including: United State Dollar|339,675.22||2,356,327.00|
|Euro|380.00||2,776.58|
|Hong Kong Dollar|2,896,611.23||2,591,018.75|

VIII、Changes of Consolidated Financial Statement Scope
1、 Changes of consolidated financial statement scope for other reasons
Provide details of any changes of consolidated financial statement scope for other reasons.
During the first half year of 2017, the following companies were found.
Currency: RMB Yuan
|||
|-|-|
|Entities|Net assets at closing balance|
|Hubei Baowan Logistics Investment Co. Ltd|30,088,541.21|
|Wuhan Qingshan Baowan Logistics Co., Ltd|30,035,720.73|
|Zhangzhou Baowan Logistics Co., Ltd.||

During the first half year of 2017, the following company was cancelled
Currency: RMB Yuan
|||
|-|-|
|Entities|Net assets at closing balance|
|Changzhou Baowan Logistics Co., Ltd.|-1,413.00|

IX、Equity in other entities
1、Equity in subsidiaries
（1）Group Composition
||||||||
|-|-|-|-|-|-|-|
|||||Proportion of holding|||
|Name of|Business premise|Registered place|Business nature|equity (%)||Acquired method|
|subsidiary||||Direct|Indirect||
||Shenzhen,Guang|Shenzhen,Guang|||||
|Blogis Holdings|||Investment|77.36%||Set-up|
||dong Province|dong Province|||||
|Shanghai Blogis|Shanghai|Shanghai|Logistics Service||100.00%|Set-up|
||Guangzhou ,|Guangzhou ,|Logistics Service||||
|Guangzhou|||||||
||Guangdong|Guangdong|||100.00%|Set-up|
|Blogis|||||||
||Province|Province|||||
||Kunshan, Jiangsu|Kunshan, Jiangsu|Logistics Service||||
|Kunshan Blogis|||||100.00%|Set-up|
||Province|Province|||||
|Tianjin Blogis|Tianjin|Tianjin|Logistics Service||100.00%|Set-up|
||Langfang, Hebei|Langfang, Hebei|Logistics Service||||
|Langfang Blogis|||||100.00%|Set-up|
||Province|Province|||||
||Chengdu,|Chengdu,|Logistics Service||||
|Longquan Blogis|||||100.00%|Set-up|
||Sichuan Province|Sichuan Province|||||
||Chengdu,|Chengdu,|Logistics Service||||
|Xindu Blogis|||||100.00%|Set-up|
||Sichuan Province|Sichuan Province|||||
||Nanjing, Jiangsu|Nanjing, Jiangsu|Logistics Service||||
|Nanjing Blogis|||||100.00%|Set-up|
||Province|Province|||||
|Bingang Blogis|Tianjin|Tianjin|Logistics Service||100.00%|Set-up|
||Nantong, Jiangsu|Nantong, Jiangsu|Logistics Service||||
|Nantong Blogis|||||100.00%|Set-up|
||Province|Province|||||
||Wuhan, Hubei|Wuhan, Hubei|Logistics Service|||Set-up|
|Wuhan Blogis|||||100.00%||
||Province|Province|||||
|Qingwu Blogis|Tianjin|Tianjin|Logistics Service||100.00%|Set-up|
||Shenyang ,Liaoni|Shenyang ,Liaoni|Logistics Service|||Set-up|
|Shenyang Blogis|||||100.00%||
||ng Province|ng Province|||||
||Wuhan, Hubei|Wuhan, Hubei|Logistics Service|||Set-up|
|Yangluo Blogis|||||100.00%||
||Province|Province|||||
||Hefei, Anhui|Hefei, Anhui|Logistics Service|||Set-up|
|Feidong Blogis|||||100.00%||
||Province|Province|||||
||Xi’an, Shanxi|Xi’an, Shanxi|Logistics Service|||Set-up|
|Xi’an Blogis|||||100.00%||
||Province|Province|||||
||Xianyang, Shanxi|Xianyang, Shanxi|Logistics Service|||Set-up|
|Xianyang Blogis|||||100.00%||
||Province|Province|||||
||Hong Kong|Hong Kong||||Set-up|
|Blogis Hongkong|||Investment||100.00%||
||Special|Special|||||

||||||||
|-|-|-|-|-|-|-|
||Administrative|Administrative|||||
||Region|Region|||||
||Qingdao,|Qingdao,||||Set-up|
|Jiaozhou Blogis|Shandong|Shandong|Logistics Service||100.00%||
||Province|Province|||||
|Changzhou|Changzhou,|Changzhou,||||Set-up|
||||Logistics Service||100.00%||
|Blogis|Jiangsu Province|Jiangsu Province|||||
||Jiaxing, Zhejiang|Jiaxing, Zhejiang||||Set-up|
|Jaixing Blogis|||Logistics Service||100.00%||
||Province|Province|||||
||Jiangyin, Jiangsu|Jiangyin, Jiangsu||||Set-up|
|Jiangyin Blogis|||Logistics Service||100.00%||
||Province|Province|||||
||Shenzhen,|Shenzhen,||||Business combination|
|Shenzhen Blogis|Guangdong|Guangdong|Logistics Service|100.00%||involving enterprises|
||Province|Province||||under common control|
|||||||Business combination|
|Mingjiang Blogis|Shanghai|Shanghai|Logistics Service||100.00%|involving enterprises|
|||||||under common control|
||Hong Kong|Hong Kong|||||
|||||||Business combination|
||Special|Special|||||
|China Huitong|||Investment||100.00%|involving enterprises|
||Administrative|Administrative|||||
|||||||under common control|
||Region|Region|||||
|||||||Business combination|
||Wuxi, Jiangsu|Wuxi, Jiangsu|||||
|Wuxi Blogis|||Logistics Service||100.00%|involving enterprises|
||Province|Province|||||
|||||||under common control|
|||||||Business combination|
|Zhenjiang|Zhenjiang,|Zhenjiang,|||||
||||Logistics Service||100.00%|involving enterprises|
|Warehouse|Jiangsu Province|Jiangsu Province|||||
|||||||under common control|
|Chengdu Oil&gas|Chengdu,|Chengdu,|The development of||||
|||||100.00%||Set-up|
|Base|Sichuan Province|Sichuan Province|new energy||||
||Shaoxing,Zhejian|Shaoxing,Zhejian|Logistics Service|||Set-up|
|Shaoxing Blogis|||||100.00%||
||g province|g province|||||
||Nanjiang,Jiangsu|Nanjiang,Jiangsu|Logistics Service|||Set-up|
|Jiangsu Blogis|||||100.00%||
||Province|Province|||||
|Xipeng Blogis|Chongqing|Chongqing|Logistics Service||100.00%|Set-up|
||Zhengzhou,|Zhengzhou,|Logistics Service|||Set-up|
|Zhengzhou Bsea|||||80.00%||
||Henan province|Henan province|||||
||Ezhou ,Hubei|Ezhou ,Hubei|Logistics Service|||Set-up|
|E’zhou Blogis|||||100.00%||
||province|province|||||
||Nantong, Jiangsu|Nantong, Jiangsu|Logistics Service|||Set-up|
|Xintong Blogis|||||100.00%||
||Province|Province|||||
||Jiashan, Zhejiang|Jiashan, Zhejiang|Logistics Service|||Set-up|
|Jiashan Blogis|||||100.00%||
||province|province|||||

|||||||
|-|-|-|-|-|-|
|Beijing|||Logistics Service|100.00%|Business combination|
|Konggang|Beijing|Beijing|||involving enterprises not|
|Baowan|||||under common control|
|Yuyao Baowan|Zhejiang, Yuyao|Zhejiang, Yuyao|Logistics Service|100.00%|Set-up|
|Xiaogan Baowan|Hubei Xiaogan|Hubei Xiaogan|Logistics Service|100.00%|Set-up|
|Xinjin Baowan|Sichuan Chengdu|Sichuan Chengdu|Logistics Service|100.00%|Set-up|
|Sanshui Baowan|Guangdong|Guangdong|Logistics Service|100.00%|Set-up|
||Foshan|Foshan||||
||Guangdong|Guangdong|Logistics Service|100.00%|Set-up|
|Nanhai Baowan||||||
||Foshan|Foshan||||
|Yuhua Baowan|Hunan Changsha|Hunan Changsha|Logistics Service|100.00%|Set-up|
|Deqing Baowan|Zhejiang Deqing|Zhejiang Deqing|Logistics Service|100.00%|Set-up|
|Wangcheng|||Logistics Service|100.00%|Set-up|
||Hunan Changsha|Hunan Changsha||||
|Baowan||||||
|Luohuang|||Logistics Service|100.00%|Set-up|
||Chongqing|Chongqing||||
|Baowan||||||
||||Logistics Service|100.00%|Business combination|
|Tianjin Haier|Tianjin|Tianjin|||involving enterprises not|
||||||under common control|
|Jiaxing Supply|||Logistics Service|90.00%|Set-up|
||Zhejiang Jiaxing|Zhejiang Jiaxing||||
|Chain||||||
|Ningbo Baowan|Zhejiang Ningbo|Zhejiang Ningbo|Logistics Service|100.00%|Set-up|
|Dianzhong|||Logistics Service|100.00%|Set-up|
||Yunnan Kunming|Yunnan Kunming||||
|Baowan||||||
|Hubei Baowan|Hubei Wuhan|Hubei Wuhan|Logistics Service|100.00%|Set-up|
|Qingshan|||Logistics Service|100.00%|Set-up|
||Hubei Wuhan|Hubei Wuhan||||
|Baowan||||||

（2）Significant non-wholly owned subsidiary:
Currency： RMB Yuan
||||||
|-|-|-|-|-|
|||Profit and lossattributable to minorityshareholders in thecurrent period|||
||||Dividends declared to||
||Proportion of minority|||Closing Balance of|
|Name of Subsidiary|||minority shareholders in||
||shareholders|||minority shareholders|
||||the current period||
|Blogis Holdings|22.64%|9,390,443.24||866,553,903.14|

（3）Financial information of significant non-wholly owned subsidiary:
Currency： RMB Yuan
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Closing Balance||||||Opening Balance||||||
|Name of|||||||||||||
|||Non-current||Current|Non-current|Total of||Non-current||Current|Non-current|Total of|
|Subsidiary|Current Assets||Total of Assets||||Current Assets||Total of Assets||||
|||Assets||Liabilities|Liabilities|Liabilities||Assets||Liabilities|Liabilities|Liabilities|
|Blogis|646,854,171.23|6,144,221,942.97|6,791,076,114.20|1,561,226,372.97|1,480,677,976.44|3,041,904,349.41|622,065,828.35|5,775,904,816.25|6,397,970,644.60|1,554,202,443.71|1,135,874,963.68|2,690,077,407.39|
|Holdings|||||||||||||
|（Consolida|||||||||||||
|tion）|||||||||||||

Currency： RMB Yuan
||||||||||
|-|-|-|-|-|-|-|-|-|
||Amount incurred in the current period||||Amount incurred in the prior period||||
|Name of|||||||||
||||Comprehensive|Cash Flows from|||Comprehensive|Cash Flows from|
|Subsidiary|Operating Revenue|Net Profits|||Operating Revenue|Net Profits|||
||||Income|Operating Activities|||Income|Operating Activities|
|Blogis Holdings|278,278,857.43|41,689,355.73|41,160,933.08|137,644,957.28|254,035,417.18|48,110,260.58|48,110,260.58|153,540,706.42|
|（Consolidation）|||||||||

2、Equity in the joint venture arrangement and Associated Enterprises
（1）Significant joint venture arrangement and Associated Enterprises
||||||||
|-|-|-|-|-|-|-|
|||||Proportion of holding equity (%)||Accounting|
|Company|Business premise|Registered place|Business nature||||
|||||Direct|Indirect|method|
||Shenzhen|Shenzhen|Offshore oil||||
|CSE|||engineering|32.00%||Equity method|
||||construction||||
||Shenzhen|Shenzhen|Capital||||
|CDFC||||20.00%||Equity method|
||||management||||
||Shenzhen|Shenzhen|Petrochemical||||
|CPEC|||equipment|20.00%||Equity method|
||||manufacturing||||
||Sichuan|Sichuan|Supply chain||||
|Sichuan|||||||
||Chengdu|Chengdu|management||40.00%|Equity method|
|Wenxuan|||services and||||
||||consulting||||

（2）Financial information in significant Associated Enterprises
Currency: RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Closing balance/ Amount for the current period||||Opening balance/ Amount for the prior period|||
|||||Sichuan||||
||CSE|CDFC|CPEC||CSE|CDFC|CPEC|
|||||Wenxuan||||
|Current Assets||4,352,320,033.||||5,683,218,806.||
||502,048,923.33||12,687,986.52|5,000,000.00|475,445,258.66||14,761,345.19|
|||03||||86||
|Non-current|1,158,549,778.|4,361,172,964.|||1,116,355,891.|||
||||2,174,920.71|||9,238,857.55|3,099,232.49|
|assets|33|44|||44|||
|Total asset|1,660,598,701.|8,713,492,997.|||1,591,801,150.|5,692,457,664.||
||||14,862,907.23|5,000,000.00|||17,860,577.68|
||66|47|||10|41||
|Current||3,719,860,808.||||5,089,049,191.||
||140,231,265.09||13,208,589.65||102,007,170.26||14,426,466.13|
|liabilities||39||||91||
|Non-current||||||||
|||||||97,806.58||
|liabilities||||||||
|Total liability||3,719,860,808.||||5,089,146,998.||
||140,231,265.09||13,208,589.65||102,007,170.26||14,426,466.13|
|||39||||49||
|Net assets||||||||
|share||||||||
|calculated||||||||
||490,578,728.04|128,262,431.21|381,598.76|2,000,000.00|480,795,224.35|120,662,133.18|737,557.53|
|according to||||||||
|proportion of||||||||
|shareholding||||||||
|Net book value||||||||
|of the equity||||||||
||490,578,728.04|128,262,431.21|381,598.76|2,000,000.00|480,795,224.35|120,662,133.18|737,557.53|
|investment in||||||||
|associates||||||||
|Income|405,070,204.25|52,563,411.37|1,529,670.70|0.00|223,381,557.46|44,319,651.24|14,208,275.85|
|Net profit|30,573,456.73|38,001,490.13|-1,779,793.97|0.00|34,166,910.65|19,994,696.19|-5,870,919.49|
|Total||||||||
|comprehensive|30,573,456.73|38,001,490.13|-1,779,793.97||34,166,910.65|19,994,696.19|-5,870,919.49|
|income||||||||
|Dividend||||||||
|received from||||||||
|associates in|||||12,908,798.55|||
|the current||||||||
|period||||||||

X、RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1、Parent of the Company
Currency: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||||Shareholding|||
|||Registered||||Registered||||Voting power|
|Entity name||||Business nature||||percentage|||
|||location||||capital (RMB)||||percentage (%)|
|||||||||(%)|||
||GuangdongShenzhen||Port and shipping, offshore oil service, realestate development and new constructionmaterial||900,000,000.00||51.79||51.79||
|Nanshan|||||||||||
|Group|||||||||||

2、Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in note (IX) 1.
3、 Associates and joint ventures of the Company
Details of the associates and joint ventures of the Company are set out in note (IX) 2.
4、 Related transactions
（1）Provision and receipt of services
Receipt of service
Currency： RMB Yuan
|||||||
|-|-|-|-|-|-|
|||||Whether exceed the||
|||Amount for the|Approved transaction||Amount for the|
|Related party|Details of Transaction|||approved transaction||
|||current period|amount||prior period|
|||||amount||
|Nanshan Group||1,445,770.77|3,050,000.00||1,456,454.40|
||Power supply service|||No||
|(Power Station)||||||

Provision of service
Currency： RMB Yuan
|||||
|-|-|-|-|
|||Amount for the current||
|Related party|Details of Transaction||Amount for the prior period|
|||period||
|CSE|Maintenance service|65,641.98|2,612,203.11|
||Maintenance service, loading and|3,841.73|23,680.92|
|CPEC||||
||unloading service|||
|Nanshan Group|Maintenance service|86,060.95|87,112.69|
|CDFC|Maintenance service|13,629.85|12,709.41|
|Chixiao Project||162,065.92||
||Maintenance service|||
|Company||||
|Shenzhen Chiwan||57,434.00||
||Loading and unloading service,|||
|Steamship||||
||warehouse service|||
|transportation||||
|Oriental Logistics|Loading and unloading service,|1,374,144.63||
|Company|warehouse service|||

（2）Leases with related parties
Leases where a group entity is the lessor:
Currency：RMB Yuan
|||||
|-|-|-|-|
|||Lease income recognized|Lease income recognized|
|Name of lessee|Type of leased assets|||
|||in the current period|in the prior period|
|Nanshan Group|Office building|3,454,772.87|3,238,823.24|
|Nanshan Real Estate Company|Office building|43,009.14|43,882.56|
|Chiwan Real Estate Company|Warehouse|510,194.16|485,940.00|
|Chixiao Company|Office building|234,178.40|240,852.90|

|||||
|-|-|-|-|
|CSE|Office building, warehouse|2,053,494.34|2,395,052.28|
|CPEC|Office building|167,535.54|371,614.48|
|CDFC|Office building|578,956.55|704,813.55|
|Oriental Logistics Company|Office building|181,562.40|66,830.40|
|Oriental Supply Chain||128,800.00||
||Office building|||
|Company||||

Leases where a group entity is the lessee:
Currency: RMB Yuan
|||||
|-|-|-|-|
|||Lease payment recognized|Lease payment recognized|
|Name of lessor|Type of leased assets|||
|||in the current period|in the prior period|
|Nanshan Group|Site (Note 1)|1,134,368.82|1,134,368.82|
|Nanshan Group|Site (Note 2)|28,709,851.32|13,921,230.06|

 Note 1: The leased land is located to the southeast of the intersection of Chiwan 2nd Road and 6th Road, which Shenzhen Baowan has leased from Nanshan Group, the Company's parent company.
Note 2: The leased assets include two pieces of lands which the Company has leased from Nanshan Group: one is to the east of Chiwan 1st Road, with the lease term from 1 September 2006 to 31 August 2026; the other is the Chiwan east coast venue (phase I), with the lease term from 1 January 2012 to 14 July 2034.（3）Guarantees with related parties
A group entity as the guaranteed party:
Currency：RMB Yuan
||||||
|-|-|-|-|-|
|||||Whether execution of|
|||Inception date of|Expiration date of||
|Guarantor|Guaranteed amount|||guarantee has been|
|||guarantee|guarantee||
|||||completed|
|Nanshan Group（Note 1）|570,000,000.00|17/12/2012|17/12/2019|No|
|Nanshan Group（Note 1）|400,000,000.00|09/03/2012|09/03/2017|Yes|
|Nanshan Group（Note 2）|200,000,000.00|31/03/2012|30/03/2029|No|
|Nanshan Group（Note 3）|120,000,000.00|29/11/2012|28/11/2029|No|
|Nanshan Group（Note 4）|15,670,958.25|17/12/2014|16/12/2029|No|
|Nanshan Group（Note 5）|45,280,000.00|28/06/2016|37/03/2029|No|
|Nanshan Group（Note 6）|24,070,715.56|22/04/2014|21/04/2029|No|
|Nanshan Group（Note 7）|18,408,783.06|29/05/2014|28/05/2019|No|
|Nanshan Group（Note 8）|181,120,000.00|24/01/2017|23/01/2019|No|

Note 1: Guarantee provided by Nanshan Group for corporate bond and medium term note. See note (V) 30 for details. Note 2: Pursuant to the long-term borrowings contract, the loan withdrawal is expired, and the Company can no longer use the residual facility. Nanshan Group only provides guarantee for the closing balance of the loan within the guaranteed term. As at 30 Jun 2017, the closing balance of the aforesaid guaranteed loan is RMB 126,019,651.68. Note 3: Pursuant to the long-term borrowings contract, the loan withdrawal is expired, and the Company can no longer use the residual facility. Nanshan Group only provides guarantee for the closing balance of the loan within the guaranteed term. As at 30 Jun 2017, the closing balance of the aforesaid guaranteed loan is RMB 52,804,650.36. Note 4: Pursuant to the long-term borrowings contract, Wuhan Baowan can apply for loans within the scope of guaranteed amount and guaranteed term. Nanshan Group and the Company has provide guarantee for the borrowings by22.64% and77.36% of the amount respectively. As at 30 Jun 2017, the closing balance of the aforesaid guaranteed loan is RMB 69,218,013.48, which Nanshan Group and the Company guarantee RMB 15,670,958.25 and RMB 53,547,055.23 by22.64% and77.36% respectively.
Note 5: Pursuant to the short-term borrowings contract, the Company has provided a maximum of RMB
200,000,000.00 irrevocable guarantee with joint-liability for Baowan Holdings, whereas Nanshan Group has
provided a counter-guarantee against the Company by22.64% of RMB 200,000,000.00.
Note 6: Pursuant to the long-term borrowings contract, Guangzhou Baowan can apply for loans within the scope of guaranteed amount and guaranteed term. Nanshan Group and the Company has provide guarantee for the borrowings by22.64% and77.36% of the amount respectively. As at 30 Jun 2017, the closing balance of the aforesaid guaranteed loan is RMB 106,319,415.02, which Nanshan Group and the Company guarantee RMB 24,070,715.56 and RMB 82,248,699.46 by22.64% and77.36% respectively.
Note 7: Pursuant to the long-term borrowings contract, Nanjing Baowan can apply for loans within the scope of guaranteed amount and guaranteed term. Nanshan Group and the Company has provide guarantee for the borrowings by22.64% and77.36% of the amount respectively. As at 30 Jun 2017, the closing balance of the aforesaid guaranteed loan is RMB 81,310,879.23, which Nanshan Group and the Company guarantee RMB 18,408,783.06 and RMB 62,902,096.17 by22.64% and77.36% respectively.
Note 8: Pursuant to the short-term borrowings contract, the Company has provided a maximum of RMB 800,000,000.00 irrevocable guarantee with joint-liability for Baowan Holdings, whereas Nanshan Group has provided a counter-guarantee against the Company by22.64%. As at 30 Jun 2017, the closing balance of the aforesaid guaranteed loan is RMB 594,000,000.00, which Nanshan Group and the Company guarantee RMB 181,120,000.00 and RMB 412,880,000.00 by22.64% and77.36% respectively.
（4）Money lending between related parties
Currency: RMB Yuan
||||||
|-|-|-|-|-|
|Related parties|Amounts|Starting date|Maturity date|Note|
|Borrowing|||||
|Nanshan Group|200,000,000.00|06 March 2017|06 March 2022||
|Nanshan Group|240,000,000.00|11 November 2016|31 October 2019||
|Nanshan Group|220,000,000.00|13 April 2017|13 April 2020||
|Nanshan Group|50,000,000.00|08 November 2016|08 November 2019||
|Nanshan Group|40,000,000.00|27 June 2017|27 June 2022||
|Nanshan Group|50,000,000.00|27 June 2017|27 June 2022||
|Nanshan Group|207,000,000.00|02 March 2017|02 March 2020||
|Nanshan Group|87,000,000.00|02 March 2017|02 March 2020||
|CDFC|207,900,000.00|27 May 2016|27 May 2026||
|CDFC|100,000,000.00|31 March 2016|30 March 2019||
|CDFC|100,000,000.00|29 December 2016|29 December 2019||
|CDFC|94,500,000.00|07 November 2016|07 November 2026||
|CDFC|69,000,000.00|04 August 2016|04 August 2026||
|CDFC|63,455,100.00|08 December 2016|08 December 2019||
|CDFC|53,000.000.00|17 October 2016|17 October 2026||
|CDFC|34,000,000.00|01 August 2016|01 August 2019||
|Lending|||||
|CDFC|-500,000.00|04 August 2016|04 August 2026||
|CDFC|-1,000,000.00|17 October 2016|17 October 2026||
|CDFC|-1,000,000.00|27 May 2016|27 May 2026||
|CDFC|-1,000,000.00|08 December 2016|08 December 2019||
|CDFC|-1,000,000.00|01 August 2016|01 August 2019||
|CDFC|-500,000.00|07 November 2016|07 November 2026||
|Nanshan Group|294,000,000.00|25 January 2016|25 January 2017||
|Nanshan Group|50,000,000.00|15 August 2016|15 August 2017||

5、Amounts due from / to related parties
（1）Amounts due from related parties
Currency: RMB Yuan
|||||||
|-|-|-|-|-|-|
|||Closing balance||Opening balance||
|Item|Related party|||||
|||Carrying amount|Bad debt provision|Carrying amount|Bad debt provision|
|Accounts receivable|Nanshan Group|79,710.74|494.78|76,616.55|766.17|
||Chixiao Engineering|83,722.44|524.95|||
|Accounts receivable||||||
||Company|||||
|Accounts receivable|Chiwan Real Estate|82,595.70|517.88|82,595.70|825.96|
|Accounts receivable|CDFC|103,702.62|650.22|||
|Accounts receivable|CSE|1,120,603.02|7,026.26|268,743.22|2,687.43|
|Accounts receivable|Nanshan Real Estate|7,526.60|47.19|||
|Accounts receivable|CPEC|427,037.42|4,270.37|318,036.50|3,180.37|
|Other receivable|Mingjiang|127,065,964.44||130,843,804.90||
||international|||||
|Other receivable|Tianjin Baowan|||104,045,923.86||
|Other receivable|Langfang Baowan|||91,453,113.76||
|Other receivable|Guangzhou Baowan|||73,806,105.00||

|||||||
|-|-|-|-|-|-|
|Other receivable|Longquan Baowan|53,235,516.43||56,124,406.58||
|Other receivable|Chengdu Oil and|98,026.00||1,110,383.33||
||Gas base|||||
|Other receivable|CSE|27,336.60|273.36|27,336.60|273.37|
|Other receivable|Baowan Holding|21,989.05||116,098.68||
|Other receivable|Jiaxing Investment|15,333,000.00||15,333,000.00||
|Other receivable|Nanshan Group|2,750.00|27.50|2,750.00|27.50|

（2）Amounts due to related parties
Currency: RMB Yuan
|||||
|-|-|-|-|
|Item|Related party|Closing balance|Opening balance|
|Accounts payable|Nanshan Group|12,630,080.43|7,286,492.59|
|Accounts payable|Chixiao Engineering Company|93,258.66|93,258.66|
|Accounts payable|CSE|16,554.40|16,554.40|
|Accounts payable|Chixiao Construction Company|9,740.00|9,740.00|
|Accounts payable|Nanshan Group|358,391.65|570,633.32|
|Accounts payable|CDFC||888,845.72|
|Other payables|Nanshan Hong Kong|21,651,668.80|21,655,761.67|
|Other payables|Nanshan Group|16,942,647.35|13,598,928.74|
|Other payables|Chixiao Project Company|878,261.27|8,718,573.62|
|Other payables|Chixiao Construction Company|446,736.04|4,840,413.70|
|Other payables|CSE||255,726.00|
|Other payables|CPEC||204,224.04|
|Other payables|Oriental Logistics Company|216,171.00|179,375.00|
|Other payables|Chiwan Real Estate||62,059.90|
|Other payables|Chixiao Company|35,790.30|35,790.30|
|Non-current liabilities within||210,000,000.00|210,000,000.00|
||Nanshan Hong Kong|||
|one year||||
|Non-current liabilities within||785,836.56|785,836.56|
||CSE|||
|one year||||
|Other current liabilities|Nanshan Group||564,000,000.00|
|Other non-current liabilities|Nanshan Group|1,094,000,000.00|490,000,000.00|
|Other non-current liabilities|Nanshan Hong Kong|6,000,000.00|6,000,000.00|
|Other non-current liabilities|CSE|3,093,362.46|3,879,199.02|

6、Amounts deposited in related parties
Cash and bank balances deposited in related parties
Currency: RMB Yuan
|||||
|-|-|-|-|
|Item|Related party|Closing balance|Opening balance|
|Cash and bank balances|CDFC|89,424,188.09|177,270,206.74|

XI. COMMITMENTS AND CONTINGENCY
1. Significant commitments
(1) Capital commitments
Currency: RMB Yuan
||||
|-|-|-|
||Closing balance|Opening balance|
|Capital commitments that have been entered|||
|into but have not been recognized in the|||
|financial statements:|||
|- Commitment for acquisition and|297,349,050.63|297,349,050.63|
|construction of long-term assets|||

(2) Operating lease commitments
At the balance sheet date, the Group had the following commitments in respect of non-cancellable operating leases:
||||
|-|-|-|
||Closing balance|Opening balance|
|Minimum lease payments under|||
|non-cancellable operating leases:|||
|1st year subsequent to the balance sheet date|16,559,149.07|33,118,298.13|
|2nd year subsequent to the balance sheet date|39,388,509.13|39,388,509.13|
|3rd year subsequent to the balance sheet date|38,814,361.08|38,814,361.08|
|Subsequent periods|449,937,149.06|449,937,149.06|
|Total|544,699,168.34|561,258,317.40|

2. Significant commitments
There is no significant contingency needed to be disclosed for the Group.
XII. 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|||
|Item|||||||||||
|||Proportio||Proportion|Net Book Value||Proportio||Proportion|Net Book Value|
||Amount||Amount|||Amount||Amount|||
|||n (%)||(%)|||n (%)||(%)||
|Other receivables that are|||||||||||
|individually significant and|||||||||||
|provided for bad debt|||||||||||
|individually|||||||||||
|Accounts receivables for|35,731,482.|100.00|224,038.|0.63%|35,507,444.|22,403,886|100.00|224,038.8|1.00%|22,179,847.|
|which bad debt provision has|||||||||||
|been assessed by portfolios of|96|%|86||10|.44|%|6||58|
|credit risk characteristics|||||||||||
|Other receivables that are not|||||||||||
|individually significant and|||||||||||
|provided for bad debt|||||||||||
|individually|||||||||||
||35,731,482.|100.00|224,038.|0.63%|35,507,444.10|22,403,886|100.00|224,038.8|1.00%|22,179,847.58|
|Total|||||||||||
||96|%|86|||.44|%|6|||

 Accounts receivable that are significant in amount individually and provided for bad debt individually
□Applicable√Not Applicable
In portfolio, accurring 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
|||||
|-|-|-|-|
||Closing balance|||
|Name of the portfolio||||
||Carrying amount|Bad debt provision|Proportion of provision (%)|
|Accruing bad debt provision|35,731,482.96|224,038.86|0.63%|
|according to the||||
|percentage-of-receivables||||
|approach||||
|Total|35,731,482.96|224,038.86|0.63%|

（2）Provision made and reversal of Bad debt
0 f provision has been reversed.
（3）Top five enterprises of accounts receivables
Currency：RMB Yuan
|||||||||
|-|-|-|-|-|-|-|-|
||Name of entity||Amount||Proportion (%)||Bad debt provision|
|Client 2||4,582,562.71||12.83%||72,270.01||
|Client 10||2,805,883.88||7.85%||11,702.24||
|Client 11||2,300,000.00||6.44%||||
|Client 12||1,840,604.69||5.15%||5,259.46||
|Client 13||1,833,395.94||5.13%||13,240.67||
|Total||13,362,447.22||37.40%||102,490.38||

2、Other Receivables
（1）Disclosure of other receivables by categories:
Currency: RMB Yuan
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||Closing balance|||||Opening balance|||||
||Carrying amount||Bad debt provision|||Carrying amount||Bad debt provision|||
|Item|||||Net Book||||||
||Amount|Proportion|Amount|Proportion (%)|Value|Amount|Proportio|Amount|Proportio|Net Book Value|
|||(%)|||||n (%)||n (%)||
|Other receivables for which|181,247,494.|99.63%|0.00||181,247,494|457,636,342|99.85||0.00%|457,636,342.|
|bad debt provision has been|26||||.26|.31|%|||31|
|assessed by portfolios of|||||||||||
|credit risk characteristics|||||||||||
|Other receivable that are not|680,788.88|0.37%|6,807.89|1.00%|673,980.99|680,788.88|0.15%|6,807.89|1.00%|673,980.99|
|individually significant but|||||||||||
|for which bad debt provision|||||||||||
|has been assessed|||||||||||
|individually|||||||||||
||181,928,283.||6,807.89||181,921,475.25|458,317,131||6,807.89||458,310,323.30|
|Total|||||||||||
||14|||||.19|||||

 Other receivables that are significant in amount individually and provided for bad debt individually
□Applicable√Not Applicable
In portfolio, accurring 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
|||||
|-|-|-|-|
||Closing Balance|||
|Name of the portfolio||||
||Carrying amount|Bad debt provision|Proportion of provision (%)|
|Accruing bad debt provision according to the|181,928,283.14|6,807.89|0.00%|
|percentage-of-receivables approach||||
|Total|181,928,283.14|6,807.89|0.00%|

In portfolio, accruing bad debt provision accounting to other approaches
□Applicable√Not Applicable
（2）Provision made and reversal of Bad debt
No provision has been reversed.
（3）Disclosure of other receivables by nature:
Currency：RMB Yuan
||||
|-|-|-|
|Nature|Closing Balance|Opening Balance|
|Deposits|26,174.80|26,174.80|
|Petty cash|251,357.61|76,087.60|
|Amount due from related parties|180,474,301.58|457,499,836.11|
|Others|1,176,449.15|715,032.68|
|Total|181,928,283.14|458,317,131.19|

（4）Top five entities with the largest balances of other receivables
Currency：RMB Yuan
|||||||
|-|-|-|-|-|-|
|||||Proportion of the||
||||||Bad debt provision|
||Relationship with|||amount to the total||
|Name of entity||Amount|Aging||for the closing|
||the Company|||accounts receivable||
||||||balance|
|||||(%)||
|Mingjiang Blogis|Related party|127,065,964.44|1-2year|69.84%||
|Longquan Blogis|Related party|53,235,516.43|1-2year|29.26%||
|Chengdu Oil and Gas|Related party|98,026.00|Within 3 months|0.05%||
|base||||||
|Client 14|Non-related party|92,413.91|3-6 months|0.05%||
|client 15|Non-related party|77,153.00|1-2year|0.04%||
|Total|--|180,569,073.78|--|99.25%|0.00|

3、Long-term Equity Investment
Currency：RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||Closing Balance|||Opening Balance|||
|Item||Bad debt|||Bad debt||
||Carrying amount||Net book value|Carrying amount||Net book value|
|||provision|||provision||
|Subsidiaries|2,664,431,824.30||2,664,431,824.30|2,633,012,324.30||2,633,012,324.30|
|Associates|619,222,760.45||619,222,760.45|602,194,915.06||602,194,915.06|
|Total|3,283,654,584.75||3,283,654,584.75|3,235,207,239.36||3,235,207,239.36|

（1）Long-term Equity Investment to subsidiaries:
Currency：RMB Yuan
||||||||
|-|-|-|-|-|-|-|
||||||Provision for bad|Closing balance|
|Investee|Opening Balance|Increase in|Decrease in|Closing Balance|debts of the|on bad debts|
|||investment|investment||current period|provision|
|Blogis Holdings|2,532,451,987.58|||2,532,451,987.58|||
|Shenzhen Blogis|41,273,772.13|||41,273,772.13|||
|Chengdu Oil &Gas|59,286,564.59|31,419,500.00||90,706,064.59|||
|Base|||||||
|Total|2,633,012,324.30|31,419,500.00||2,664,431,824.30|||

（2）Long-term Equity Investment to associates:
Currency：RMB Yuan
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||Changes in the current periodIncrease Investment Adjustment on AnnouncingDecrease Otherin income other cashin equity Provision Othersinvestm recognized comprehensive dividends orinvestment changesent by equity income profits||||||||||
||||||||||||Closing|
|||||Investment|Adjustment on||Announcing|||||
||Opening||Decrease|||Other||||Closing|balance|
|Investee||||income|other||cash|||||
||balance||in|||equity||Provision|Others|balance|on|
|||||recognized|comprehensive||dividends or|||||
||||investment|||changes||||p|rovision|
|||||by equity|income||profits|||||

|||||
|-|-|-|-|
|||method||
|I、Joint Venture||||
|II、Associates||||
|CSE|480,795,224.35|9,783,506.15|490,578,730.50|
|CFDC|120,662,133.18|7,600,298.03|128,262,431.21|
|CPEC|737,557.53|-355,958.79|381,598.74|
|Subtotal|602,194,915.06|17,027,845.39|619,222,760.45|
|Total|602,194,915.06|17,027,845.39|619,222,760.45|

4、Operating income and operating costs
（1）Operating income and operating costs
Currency: RMB Yuan
||||||
|-|-|-|-|-|
||Amount recognized in the current period||Amount recognized in the prior period||
|Item|Operating income|Operating costs|Operating income|Operating costs|
|Principal operating activities|70,879,580.33|41,945,992.95|68,844,361.06|45,529,220.40|
|Other operating activities|||||
|Total|70,879,580.33|41,945,992.95|68,844,361.06|45,529,220.40|

5、Investment income
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount recognized in the|Amount recognized in|
||current period|the prior period|
|Income from long-term equity investments under equity method|17,027,845.39|13,758,166.75|
|Income from bank financing products||1,204,227.53|
|Total|17,027,845.39|14,962,394.28|

 XIII. SUPPLEMENTARY INFORMATION
1、Breakdown of non-recurring profit or loss
Currency: RMB Yuan
||||
|-|-|-|
|Item|Amount|Remark|
|Profit or loss on disposal of non-current|31,154.25||
|assets|||
|Government grants recognized as profit or|417,807.94||
|loss for the current period(other than grants|||
|which are closely related to the Company's|||
|business and are either in fixed amounts or|||
|determined under quantitative methods in|||
|accordance with the national standard)|||
|Other non-operating income or expenses|1,981,376.85||
|other than the above|||
|Less: Tax effects|569,454.29||
|Effects attributable to minority|378,579.50||
|interests (after tax)|||
|Total|1,482,305.25|--|

2、Return on equity (ROE) and earnings per share ("EPS")
|||||
|-|-|-|-|
||Weighted average return on|EPS||
|Profit for the reporting period|net assets (%)|Basic EPS|Diluted EPS|
|Net profit attributable to ordinary shareholders of the Company|0.62%|0.05|0.05|
|Net profit after deduction of non-recurring profits or losses|0.54%|0.04|0.04|
|attributable to ordinary shareholders of the Company||||