Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SEMI-ANNUAL REPORT 2017
Date of disclosure: 25 August 2017
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section I Important Reminders, Contents& Definitions
The Board of Directors, the Supervisory Committee as well as all directors, supervisors and senior management staff of Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred to as “the Company”) warrant that this report is factual, accurate and complete without any false record, misleading statement or material omission. And they shall be jointly and severally liable for that. Liu Bin, managing director, Zhang Fang, CFO, and Li Xiaopeng, financial manager, hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete.
All the directors attended the board meeting for the review of this report.
The future plans, development strategies and some other forward-looking statements mentioned in this report shall not be considered as virtual promises of the Company to investors. And investors are kindly reminded to pay attention to possible risks.
Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn have been designated by the Company for information disclosure. And all information about the Company shall be subject towhat’s disclosed on the aforesaid media. Investors are kindly reminded to pay attention to possible risks.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into share capital.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Contents
Section I Important Reminders, Contents& Definitions ..................................................................... 1 Section II Company Profile& Financial Highlights ............................................................................ 4 Section III Business Highlights ........................................................................................................... 6 Section IV Performance Discussion and Analysis ............................................................................... 7 Section V Significant Events ............................................................................................................. 14 Section VI Share Changes& Particulars about Shareholders ............................................................ 22 Section VII Preference Shares ........................................................................................................... 27 Section VIII Directors, Supervisors and Senior Management Staff .................................................. 28 Section IX Corporate Bonds .............................................................................................................. 29 Section X Financial Report ................................................................................................................ 30 Section XI Documents Available for Reference ................................................................................ 30
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Definitions
||||
|-|-|-|
|Term|Refers to|Definition|
|Company, the Company or Chiwan|||
||Refers to|Shenzhen Chiwan Wharf Holdings Limited|
|Wharf|||
|CMPort|Refers to|China Merchants Port Holdings Company Limited|
|CND Group|Refers to|China Nanshan Development (Group) Inc.|
|Malai Storage|Refers to|Shenzhen Malai Storage Co., Ltd.|
|||Keen Field Enterprises Limited, a wholly-funded|
|KFEL|Refers to||
|||subsidiary of China Merchants Holdings (International)|
|The CSRC|Refers to|China Securities Regulation Commission|
|The Company Law|Refers to|The Company Law of the People’s Republic of China|
|The Securities Law|Refers to|The Securities Law of the People’s Republic of China|
|||The Articles of Association of Shenzhen Chiwan|
|The Articles of Association|Refers to||
|||Wharf Holdings Limited|
|The cninfo website|Refers to|www.cninfo.com.cn|

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section II Company Profile& Financial Highlights
I Basic information about the Company
|||||
|-|-|-|-|
|Stock name|Chiwan Wharf A, Chiwan Wharf B|Stock code|000022, 200022|
|Stock exchange|Shenzhen Stock Exchange|||
||深圳赤湾港航股份有限公司|||
|Company name in Chinese||||
|Abbreviation (if any)|深赤湾|||
|Company name in English (if any)|Shenzhen Chiwan Wharf Holdings Limited|||
|Abbreviation (if any)|Chiwan Wharf|||

II Contact information
||||
|-|-|-|
||Board Secretary|Securities Representative|
|Name|Mr. Wang Yongli|Ms. Hu Jingjing and Ms. Chen Dan|
|Address|8/F, Chiwan Petroleum Building, Shenzhen, PRC||
|Tel.|+86 755 26694222|+86 755 26694222|
|Fax|+86 755 26684117|+86 755 26684117|
|E-mail|cwh@szcwh.com|cwh@szcwh.com|

III Other information
1. Ways to contact the Company
The registered address, office address and their zip codes, website address and email address of the Company did not change during the reporting period. The said information can be found in the 2016 Annual Report.
2. About information disclosure and the place where this report is kept
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for disclosing this report and the place where this report is kept did not change during the reporting period. The said information can be found in the 2016 Annual Report.
IV Major accounting data and financial indicators
Does the Company need to adjust retrospectively or restate accounting data?
□ Yes√ No
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Unit: RMB
|||||
|-|-|-|-|
||Reporting period|Same period of last year|YoY +/-（％）|
|Operating revenues|929,608,498.91|904,809,652.24|2.74%|
|Net profit attributable to|276,407,832.70|266,535,506.97||
||||3.70%|
|shareholders of the Company||||
|Net profit attributable to||||
|shareholders of the Company before|275,545,048.09|264,716,384.31|4.09%|
|extraordinary gains and losses||||
|Net cash flows from operating|419,531,779.91|368,657,243.80||
||||13.80%|
|activities||||
|Basic EPS (RMB/share)|0.429|0.413|3.87%|
|Diluted EPS (RMB/share)|0.429|0.413|3.87%|
|Weighted average ROE (%)|5.76%|5.88%|-0.12%|
||As at the end of the|||
|||As at the end of last year|+/-（％）|
||reporting period|||
|Total assets|6,784,421,548.53|6,620,476,709.79|2.48%|
|Net assets attributable to|4,671,374,937.86|4,709,815,552.89||
||||-0.82%|
|shareholders of the Company||||

V Differences between accounting data under domestic and overseas accounting standards 1. Differences of net profit and net assets disclosed in financial reports prepared under international and Chinese accounting standards
No such differences
2. Differences of net profit and net assets disclosed in financial reports prepared under overseas and Chinese accounting standards
No such differences
3. Reasons for accounting data differences under Chinese and overseas accounting standards
□ Applicable√ Not applicable
VI Items and amounts of extraordinary gains and losses
Unit: RMB
||||
|-|-|-|
|Item|Amount|Note|
|Gains/losses on the disposal of non-current assets (including the offset part|-448,433.95||
|of the asset impairment provisions)|||
|Government grants recognized in the current period, except for those|498,801.18||
|acquired in the ordinary course of business or granted at certain quotas or|||
|amounts according to the government’s unified standards|||
|Non-operating income and expense other than the above|1,614,224.70||
|Less: Income tax effects|334,195.42||
|Minority interests effects (after tax)|467,611.90||
|Total|862,784.61|--|

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section III Business Highlights
I Main business during the reporting period
Is the Company subject to any disclosure requirements for special industries?
No.
We are principally engaged in the handling, warehousing and transportation of containers and bulk cargoes, as well as the provision of related services. We have 6 container berths and 7 bulk cargo berths in Chiwan Port (Shenzhen), 3 container berths in Mawan Port (Shenzhen) and 5 bulk cargo berths in Machong Port (Dongguan). We also have an investment in Laizhou Wharf in Shandong Province.
In the reporting period, the global economy continued to pick up and recovery of international trade accelerated, but there was still no sign of strong structural growth. The port industry saw faster growth in handling. As a regional hub for container and bulk cargo carriers, the Company maintained a stable market position and achieved growth in operating results in the period.
II Material changes in main assets
1. Material changes in main assets
□ Applicable√ Not applicable
2. Main assets overseas
□ Applicable√ Not applicable
III Core competitiveness analysis
Upon more than 3 decades of development, the Company has gathered a pool of experienced professionals and an excellent managerial team, with its business management highly recognized by shareholders and clients. With stable client sources and efficient business process flows, the Company is considered a leader in the sector in terms of operating efficiency. As a mature listed port company in China, the Company owns an excellent brand and reputation in the market.
Material changes as below in theCompany’s core competitiveness during the reporting period:
1. In April 2017, the freight forwarder under the Company bought 50 AMT tow trucks especially designed for port operations, which have effectively improved the container handling services.
2. In June 2017, alteration of Berth7# at the Chiwan Wharf was completed and the new berth went into trial operation, boasting a docking capacity of 70,000-ton ships and a significant increase in unloading efficiency. These improvements in resource capacity will further increase theCompany’s competitiveness and provide
guarantee for its continuously stable development.
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section IV Performance Discussion and Analysis
I Summary
In the first half of 2017, the global economy continued to pick up, prices of bulk commodities were generally on the rise and recovery of international trade accelerated, but the global economy lacked momentum in recovery and there was still no sign of strong structural growth. China furthered its supply-side structural reform and its innovation-driven development strategy, and was able to bring its economic growth up to6.9%. Its foreign trade was improving, with the total volume up19.6% compared to the same period of last year. As a result, thecountry’s port industry saw faster growth in handling. Thecountry’s coastal ports above the designated size registered a cargo throughput of 4.31 billion metric tons, representing a year-on-year growth of7.3% (5.6 percentage points higher than the same period of last year), and a container throughput of 0.1 billion TEU, up7.8% from a year earlier (5.4 percentage points higher than the same period of last year).
In the reporting period, having the big picture in mind, the Company seized market opportunities and forged ahead, and this was rewarded by increases in its main operating indicators. To be specific, the Company achieved a cargo throughput of 34.99 million metric tons, a year-on-year increase of7.4%, which generated operating revenues of RMB0.93 billion, up2.7% from the same period of last year, and net profits attributable to the Company (as the parent company) of RMB0.28 billion, representing a3.7% growth from a year earlier.
1. Container handling business
In the reporting period, growth in international trade stimulated transport demand; growth in container handling capacity slowed down but overcapacity still existed; and there were increasing large ships, with 8,000 TEU and greater ships accounting for47% of container ships. Freighters witnessed increasing integration and federation. The three major shipping federations have officially begun operation in this April, with their combined container shipping capacity taking up as much as74% of the global capacity. As a result, the shipping industry would be more centralized and the freight rates would generally remain stable.
In the Pearl River Delta, competition in container handling has intensified and shipping federations have re- adjusted their shipping routes. All ports in Shenzhen combined achieved a container throughput of 11.865 million TEU, up3.8% from the same period of last year, lower than the national average. Under such circumstances, the Company adopted effective measures to cope with adjustments infreighters’ shipping routes in order to ensure stability in its business. It strengthened business solicitation and tried to establish relationship with new shipping routes to offset the decline in its cargo transit business caused by thefreighters’federations’ adjustments to their shipping routes. As a result, at the end of the reporting period, the shipping routes in cooperation with the Company increased by 21 on a year-on-year basis, all Asian routes. Meanwhile, the Company continued to improve its logistics service and wharf services to attract cargo sources from the hinterland, which helped increase the handled local container volume by6.4% from a year earlier. In the fierce local competition, the Company realized a container throughput of 2.488 million TEU, increasing1.8% compared to the same period of last year, which accounted for21% of the Shenzhen market, flat with the same period of last year.
2. Bulk cargo handling business
Along with the recovery ofChina’s economy in the reporting period, the domestic imports of both grain and fertilizer showed signs of increase, creating market opportunities for stable growth in theCompany’s bulk cargo handling business. In the period, the Company achieved a bulk cargo throughput of 11.233 million metric tons, a31.1% year-on-year growth.
The Company adopted a business strategy of working on both domestic and foreign trade. Due to theCompany’s efforts in expanding its domestic corn handling business and its international grain and feedstuff handling business, its grain and feedstuff throughput was up28% compared to the same period of last year, of which the international throughput went up22% while the domestic throughput increased by 1.7 times, securing its leading position in the field of grain and feedstuff handling, as well as its position as a preferred discharge port for international grain and feedstuff, in the Pearl River Delta. In the meantime, in order to ensure sustained growth in
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 the grain and feedstuff handling business, the Company vigorously tried to attract new clients from nearby businesses, solidify quality cargo sources, improve its comprehensive port services, further cooperation with clients and satisfy various needs of clients.
By paying close attention to changes in the fertilizer market and staying in close contact with fertilizer clients, theCompany’s fertilizer throughput increased significantly by62.1% compared to the same period of last year, of which the imported compound fertilizer handled by the Company accounting for over50% of the national total, keeping the Company in a leading position in this respect. In the meanwhile, theCompany’s fertilizer handling business registered stable growth due to its efforts in, among other things, expanding the exported urea and imported pure sodium carbonate handling business, widening and extending channels and providing various value-added port services.
3. Support services and investment management
TheCompany’s business of support tow truck, tugboat, customs clearance and barge services operated smoothly, with a year-on-year profit increase. Meanwhile, theCompany’s main joint ventures, including China Overseas Harbour Affairs (Laizhou) Co., Ltd., China Merchants Bonded Logistics Co., Ltd. and China Merchants Holdings (International) Information Technology Co., Ltd., contributed flat returns to the Company compared to the same period of last year.
TheCompany’s business results are set out as follows:
|||||
|-|-|-|-|
|Main business indicator|Reporting period(January-June 2017)|Same period of last year( January-June 2016)|YoY +/-%|
|Total throughput (thousand tons)|34,990|32,585|7.4%|
|Among which:Container throughput (thousand TEU)|2,488|2,444|1.8%|
|Bulk cargo throughput (thousandtons)|11,233|8,567|31.1%|
|Hours charged for tow trucks(thousand hours)|588|547|7.5%|
|Hours charged for tugboats (hour)|17,152|16,790|2.2%|

During the reporting period, the Company carried out the tasks set for the year, with the focus on internal management improvement, better service quality and efficiency increase. It completed management restructuring of the Headquarters for more professional division of functions; strengthened budgetary management for more effective operational control; optimized operating procedures using the internet technology to increase the operating efficiency; encouraged innovations in process and procedure and finished multiple technical alterations; and optimized the capital and debt structure to reduce finance costs.
In the second half of 2017, the world economy is expected to continue to recover, andChina’s economy and foreign trade are likely to see more stability and improvement. However, risks still exist, including inflation pressure, changes in the monetary policies of main economies and trade protectionism. These uncertainties may cause more volatility in the port industry and pose certain challenges to the Company. In container handling, the regional competition andfreighters’ adjustments to their shipping routes exert pressure on theCompany’s business growth. To deal with that, the Company will pay close attention to certainclients’ merger and acquisition progress, be more flexible in business negotiation, try to attract new shipping routes, and be as cooperative as it can in the Tonggu Channel widening and dredging program conducted to improve the channel conditions, so as to maintain stability in theCompany’s container handling business. In bulk cargo handling, the Company will keep an eye on market and policy changes, maintain an aggressive business strategy, secure and increase theCompany’s market position, and accelerate the berth and warehouse alteration at the Chiwan Wharf, as well as the building of support warehousing facilities at the Machong Wharf, so as to improve theCompany’s overall resource capability to seize more and better opportunities for business growth. As for internal management, the Company will continue to work on lean management, innovation, resource integration, organizational
construction and risk control, and carry out various tasks according to its annual plan, trying to achieve its annual
targets.
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 II Main business analysis
See “I Summary” above.
YoY movements in financial highlights:
Unit: RMB
||||||
|-|-|-|-|-|
|||Same period of last||Main reasons for|
||Reporting period||YoY +/-%||
|||year||movements|
|Operating revenues|929,608,498.91|904,809,652.24|2.74%||
|Operating costs|535,972,835.46|492,158,524.59|8.90%||
|Administrative expenses|72,324,731.18|81,947,868.71|-11.74%||
||10,152,388.82|14,253,614.35||Interest cost decreased as|
|||||the average balance of|
|Finance costs|||-28.77%||
|||||interest-bearing debts|
|||||decreased|
|Corporate income tax expenses|58,896,433.80|49,661,006.76|18.60%||
|R&D expenses|17,130,145.36|15,986,053.06|7.16%||
|Net cash flows from operating|419,531,779.91|368,657,243.80|||
||||13.80%||
|activities|||||
|Net cash flows from investing|7,493,810.29|16,665,254.18||Higher payments for|
||||-55.03%||
|activities||||engineering|
|Net cash flows from financing|-254,949,011.51|-664,817,669.11|||
||||61.65%|Lower debt repayments|
|activities|||||
|Net increase in cash and cash|167,505,798.54|-277,266,096.67||Loans and repayments|
||||-39.59%||
|equivalents||||decreased|

No major changes occurred to the profit structure or sources of the Company during the reporting period.
Breakdown of main business
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||||Increase/decrea||Increase/decrea|
||||||Increase/decrea||
|||||se of operating||se of gross|
||||Gross||se of operating||
||Operating|||revenues over||profit rate over|
|||Operating costs|profit rate||costs over the||
||revenues|||the same||the same|
||||(%)||same period of||
|||||period of last||period of last|
||||||last year (%)||
|||||year (%)||year (%)|
|Classified by industry:|||||||
|Cargo handling|865,384,374.34|497,194,719.83|42.55%|2.48%|8.35%|-6.82%|
|Classified by region:|||||||
|Mainland|||||||
||917,481,142.33|525,832,851.29|42.69%|1.57%|9.06%|-8.44%|
|China|||||||

III Non-core business analysis
||||||
|-|-|-|-|-|
||Amount|In total profit (%)|Source/reason|Recurring or not|
|||18.33%|Profit from jointly-run and associated||
|Investment gains|69,509,957.45|||Yes|
||||companies||
|||-0.50%|Impairment provision made for accounts||
|Asset|||receivable from Hanjin Shipping||
||-1,908,239.31|||No|
|impairment|||(China) Co., Ltd last year has been||
||||received in the current period.||
|Non-operating||0.63%|Gains from disposal of non-current||
||2,407,216.29|||No|
|revenues|||assets, government subsidies, etc.||
|Non-operating|||||
||742,624.36|0.20%|Loss from disposal of non-current assets|No|
|expenses|||||

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 IV Assets and liabilities
1. Major changes in asset composition
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||End of Reporting Period||End of same period of last year||Proportion||
|||||||reason for|
|||In total||In total|change||
||Amount||Amount|||major change|
|||assets (%)||assets (%)|（%）||
|Monetary|593,542,501.41||||||
|||8.75%|405,872,026.99|6.12%|2.63%||
|funds|||||||
|Accounts|243,504,003.91||||||
|||3.59%|243,122,948.05|3.67%|-0.08%||
|receivable|||||||
|Inventories|17,926,504.16|0.26%|17,882,080.33|0.27%|-0.01%||
|Investing real|23,233,997.73||||||
|||0.34%|26,286,805.06|0.40%|-0.06%||
|estate|||||||
|Long-term|1,463,702,326.87||||||
|equity||21.57%|1,439,244,037.52|21.72%|-0.15%||
|investment|||||||
|Fixed assets|2,990,556,886.41|44.08%|3,118,183,948.02|47.05%|-2.97%||
|Construction in|183,708,222.05||||||
|||2.71%|42,297,498.37|0.64%|2.07%||
|progress|||||||

2. Assets and liabilities measured at fair value
|||||||||
|-|-|-|-|-|-|-|-|
|||Gain/loss on|Cumulative||||Closingamount|
|||||Impairment|Purchased|Sold amount||
|||fair value|fair value|||||
||Opening|||provisions in|amount in|in the||
|Item||change in the|change|||||
||amount|||the reporting|the reporting|reporting||
|||reporting|recorded into|||||
|||||period|period|period||
|||period|equity|||||
|Financial||||||||
|assets||||||||
|3. Available-|||||||9,800,000|
|for-sale||||||||
||8,550,000||1,250,000|||||
|financial||||||||
|assets||||||||
|Total of the|||||||9,800,000|
||8,550,000||1,250,000|||||
|above||||||||
|Financial|||||||0|
||0|||||||
|liabilities||||||||

Major changes in measurement attributes of main assets in reporting period
□ Yes√ No
3. Restricted asset rights as of the end of this reporting period
No such cases.
V Investments
1. General situation
□ Applicable√ Not applicable
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 2. Major equity investments made in reporting period
□ Applicable√ Not applicable
3. Major non-equity investments ongoing in reporting period
□ Applicable√ Not applicable
4. Investments in financial assets
(1) Securities investment
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Gain/los||Purch||||||
|Variety||Name|Initial|Account||s on fair|Cumulativ|ased||Gain/los|||Sour|
|||||ing||value|e fair value|in|Sold in|||||
|of|Code of|of|investment|measure|Opening|changes|changes|curre|current|s in|Closing|Account|ce of|
|securitie|securities|securiti|||book value|||||current|book value|ing title|fund|
|s||es|cost|ment||in|recorded|nt|period|period|||s|
|||||model||current|into equity|perio||||||
|||||||period||d||||||
|||||||||||||Availabl|Self-|
|Domesti||||||||||||||
|||Jiangsu||Fair||||||||e-for-|own|
|c and||||||||||||||
||600377|Express|1,120,000|value|8,550,000|-|1,250,000|-|-|-|9,800,000|sale|ed|
|foreign||||||||||||||
|||way||method||||||||financial|fund|
|stock||||||||||||||
|||||||||||||assets|s|
|||||||||||||Availabl|Self-|
|Domesti||||||||||||||
|||Petroch||||||||||e-for-|own|
|c and||||Cost||||||||||
||400032|emical|3,500,000||382,200|-|-|-|-|-|382,200|sale|ed|
|foreign||||method||||||||||
|||A1||||||||||financial|fund|
|stock||||||||||||||
|||||||||||||assets|s|
|||||||||||||Availabl|Self-|
|Domesti||||||||||||||
|||||||||||||e-for-|own|
|c and||Guang||Cost||||||||||
||400009||27,500||17,000|-|-|-|-|-|17,000|sale|ed|
|foreign||Jian 1||method||||||||||
|||||||||||||financial|fund|
|stock||||||||||||||
|||||||||||||assets|s|
|Other holding securities||||||||||||||
|investment at the end of the|||-|--|-|-||-|-|-|-|--|--|
|period||||||||||||||
|Total|||4,647,500|--|8,949,200|-|1,250,000|-|-|-|10,199,200|--|--|
|Disclosure date of||||||||||||||
|announcement of Board of||||||||||||||
|Directors for review and|||N/A|||||||||||
|approval of securities||||||||||||||
|investment||||||||||||||
|Disclosure date of||||||||||||||
|announcement of||||||||||||||
|shareholder meeting for||||||||||||||
||||N/A|||||||||||
|review and approval of||||||||||||||
|securities investment (if||||||||||||||
|any)||||||||||||||

(2) Investments in financial derivatives
No such cases in reporting period
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 VI Sale of major assets and equity interests
1. Sale of major assets
No such cases in reporting period
2. Sale of major equity interests
□ Applicable√ Not applicable
VII Main controlled and joint stock companies
Main subsidiaries and joint stock companies with over10% effect on theCompany’s net profit
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Company|Main||Registered|||Operating|||
|Company name|||Industries||Total assets|Net assets||Operating profit|Net profit|
||variety|business||capital|||revenues|||
|Chiwan||||||||||
||||Transporta|||||||
|Container||Container||USD 95.3||||||
||Subsidiary||tion||2,113,878,611.62|1,889,401,766.52|326,262,590.52|107,164,195.28|82,862,059.33|
|Terminal Co.,||handling||million||||||
||||industry|||||||
|Ltd.||||||||||
|Shenzhen||||||||||
||||Transporta|||||||
|Chiwan Harbor||Container||RMB288.||||||
||Subsidiary||tion||807,502,721.37|543,696,810.41|152,434,693.48|57,721,674.87|49,629,785.75|
|Container Co.||handling||2 million||||||
||||industry|||||||
|Ltd.||||||||||
|Dongguan||Handling||||||||
||||Transporta|||||||
|Chiwan Wharf||and storage||RMB 450||||||
||Subsidiary||tion||1,111,954,316.79|796,513,543.77|159,643,720.20|57,430,594.68|43,662,466.15|
|Company||of bulk||million||||||
||||industry|||||||
|Limited||cargos||||||||
|Dongguan||Handling||||||||
||||Transporta|||||||
|Chiwan||and storage||RMB 400||||||
||Subsidiary||tion||942,130,607.71|596,958,848.76|127,467,843.51|45,192,651.22|39,550,211.03|
|Terminal Co.,||of bulk||million||||||
||||industry|||||||
|Ltd.||cargos||||||||

Subsidiaries obtained or disposed in the reporting period:
□ Applicable√ Not applicable
VIII Structured bodies controlled by the Company
□ Applicable√Not applicable
IX Performance forecast for January-September 2017
Warning of possible loss or considerable YoY change in the accumulative net profit made during the period- beginning to the end of the next reporting period, as well as the reasons:
□ Applicable√ Not applicable
X Risks facing the Company and countermeasures
1. External risks
External risks are mainly caused by the uncertainty of macroeconomic recovery and the increasingly fierce
competition between the regional ports. The main business of the Company has a comparatively stronger
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 extraversion. The potential risk factors of macroeconomic recovery will bring a bad effect on container shipping market and bulk cargo demand and it will be a big challenge to maintain the stable port operation. The Company is under great pressure with the excess capacity of Pearl River Delta regional ports, the intensified homogeneous competition between the ports, and shunt risks of the business, as well as the downward port tariff.
The Company will pay attention to the study and judgment of external operating environmental changes, and strengthen the early-warning ability of business operating risks, and plan the effective measurements in advance to positively face the market changes and find opportunities from the challenges to maintain the stability of core business. Strengthening dominant position of the Company in the district further and enhance the coordination with other ports to avoid vicious competition of low prices and maintain good market order. At the same time, the Company should optimize and improve the allocation of ports resources, enhance the comprehensive competitiveness to build benchmarking enterprise in the industry.
2. Internal risks
Internal risks are mainly caused by the increasing operating cost and comparatively single business structure. The prices of land, labor forces, and other production factors are continuously increasing, and operating cost of wharf also increase rigidly, so the profit space of the Company is squeezed. The conventional handling business of the Company takes a large proportion with single profit source. The business extension ability needs to be strengthened.
By continuously pushing forward lean management, the Company will deeply dig out and improve the utilization efficiency of existing resources, and increase the investment of science and technologyR&D, pay attention to the technological renovation, and reduce the labor forces to improve quality and increase efficiency. Implementing “Building the Regional
1st
Level’s Port Integrated Servicer”development strategy combined with the existing advantages and based onports’ main business, the Company will expandports’ integrated service, develop new growth points of profit and build a harbor ecosphere.
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section V Significant Events
I Annual and special meetings of shareholders convened during the reporting period
1. Meetings of shareholders convened during the reporting period
|||||||
|-|-|-|-|-|-|
|||Investor|||Index to disclosed|
|Meeting|Type||Convened date|Disclosure date||
|||participation ratio|||information|
||||||For details of relevant|
||||||resolution|
|2016 Annual|Annual||||announcement(annou|
|Meeting of|Meeting of|75.43%|5 Jun. 2017|6 Jun. 2017|ncement No: 2017-|
|Shareholders|Shareholders||||019) , see|
||||||www.cninfo.com.c|
||||||n|

2. Special meetings of shareholders convened at request of preference shareholders with resumed voting rights
□ Applicable√ Not applicable
II Proposal for profit distribution and converting capital reserve into share capital for the Reporting period
For the reporting period, the Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital.
III Commitments of theCompany’s actual controller, shareholders, related parties and acquirer, as well as the company and other commitment makers, fulfilled in the reporting period or still ongoing at period-end
||||||||
|-|-|-|-|-|-|-|
|||||Date of|||
||Commitmen|Type of|||Period of||
|Commitment|||Contents|commitment||Fulfillment|
||t maker|commitment|||commitment||
|||||making|||
||||In order to enhance the|||CND Group proposed in|
||||shareholding confidence|||Mar. 2009 to the Company|
||||of tradable share holders,|||<The Report on Formulating|
||||and encourage the core|||and Carrying out the Equity|
||||management and key|||Inventive Plan of Shenzhen|
||||personnel so that the|||Chiwan Wharf Holdings|
||||interests of the|||Limited>, which was|
||||management and all the|||reviewed and approved in|
|Share reform commitment|CND Group|Other|shareholders can coincide,|5 Apr. 2006|Standing|the general meeting of the|
||||CND made a commitment|||Company in May 2009. The|
||||to entrust, through the|||Board of Directors of the|
||||general meeting of the|||Company was authorized to|
||||Company, the Board of|||formulate and carry out an|
||||Directors of the Company|||equity incentive plan at a|
||||to formulate and carry out|||proper timing according to|
||||an equity incentive plan at|||applicable laws and|
||||a proper timing after the|||regulations. In Jun. 2014,|

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||completion of the share|||according to <The Methods|
||||division reform according|||(Trial) for State Holding|
||||to applicable laws and|||Listed Companies to Carry|
||||regulations.|||out Equity Inventive>|
|||||||jointly promulgated by the|
|||||||State-owned Assets|
|||||||Supervision and|
|||||||Administration Commission|
|||||||of the State Council and the|
|||||||Ministry of Finance, as well|
|||||||as <The Administrative|
|||||||Methods (Trial) for Equity|
|||||||Incentive of Listed|
|||||||Companies> promulgated by|
|||||||CSRC, the equity incentive|
|||||||plan could not be|
|||||||successfully formulated due|
|||||||to policy and regulation|
|||||||changes, as well as some|
|||||||restrictions. Therefore, the|
|||||||Company has decided not to|
|||||||formulate and carry out the|
|||||||equity incentive plan for|
|||||||now. The Board of Directors|
|||||||will continue to follow and|
|||||||study relevant policies and|
|||||||regulations, and reconsider|
|||||||formulating and carrying out|
|||||||a new equity incentive plan|
|||||||according to the actual|
|||||||situation of the Company|
|||||||and executing the decision-|
|||||||making procedure.|
||||||Concerning||
||||||horizontal||
||||||competition, it is||
||||1. Commitments about||promised that||
||||share custody;||the horizontal||
|||Commitmen|2. Commitment about||competition||
|||t on|guaranteeing the||issue will be||
|||horizontal|independency of the||solved through||
|||competition,|Company;||ways such as||
||CMPort|||17 Sept. 2012||In the process of execution|
|||related-party|3. Commitment about||asset||
|||transactions|horizontal competition;||reorganization||
|||and capital|and||in the coming 3-||
|||occupation|4. Commitment about||5 years. And the||
|Commitment in the|||||||
||||regulating related-party||other three||
|acquisition report or the|||||||
||||transactions||commitments||
|report on equity changes|||||||
||||||are subject to||
||||||the share||
||||||custody period.||
||||1. Commitment about||||
|||Commitmen|guaranteeing the||||
|||t on|independency of the||||
|||horizontal|Company;||Whenever Malai||
||Malai|competition,|2. Commitment about||Storage holds||
|||||27 Dec. 2012||In the process of execution|
||Storage|related-party|horizontal competition;||the Company’s||
|||transactions|and||shares||
|||and capital|3. Commitment about||||
|||occupation|regulating related-party||||
||||transactions||||
|Commitment in asset|||||||
|reorganization|||||||
|Commitment in IPO or|||||||
|refinancing|||||||
|Equity incentive|||||||
|commitment|||||||

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||CND Group irrevocably||||
||||and unconditionally||||
||||agrees that if Chiwan||||
||||Wharf suffers from any||||
||||loss, expense, liability,||||
||||demanded compensation||||
||||or law suit due to any||||
||||actual or potential||||
||||illegality or||||
||||unenforceability in any||||
|Other commitments made||||20 Mar. 2011|||
||CND Group|Other|land use agreement or||Standing|In the process of execution|
|to minority shareholders|||||||
||||relevant documents signed||||
||||or to be signed by CND||||
||||Group or other related||||
||||problems, CND Group||||
||||promises to give full||||
||||immunity to the recipient||||
||||party of the land use right||||
||||and its inheritor and the||||
||||recipient person regarding||||
||||the aforesaid matters.||||
|Executed on time or not|Yes||||||
|Explain in detail specific|||||||
|reasons for failing to fulfill|||||||
|commitment and plan for|||||||
||N/A||||||
|next step in case of|||||||
|commitment unfulfilled on|||||||
|time|||||||

IV Engagement and disengagement of CPAs firm
Has the semi-annual financial report been audited?
□Yes√ No
This Semi-Annual Report is unaudited.
V Explanation given by the Board of Directors, Supervisory Board regarding the “non- standardauditor’s report” issued by the CPAs firm for the reporting period
□ Applicable√ Not applicable
VI Explanations given by Board of Directors regarding “modifiedauditor’s report” issued for last year
□ Applicable√ Not applicable
VII Bankruptcy and restructuring
No such cases in the reporting period.
VIII Legal matters
No such cases in the reporting period
Other legal matters:
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017□ Applicable√ Not applicable
IX Punishments and rectifications
No such cases in the reporting period
X Credit conditions of the Company as well as its controlling shareholder and actual controller
□ Applicable√ Not applicable
XI Equity incentive plans, employee stock ownership plans or other incentive measures for employees
No such cases in the reporting period
XII Significant related-party transactions
1. Related-party transactions relevant to routine operation
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||||Wheth|Settleme||||
|||||Pricing||||Approve||||||
|||Type|Content||||Proporti||er|nt||||
|||||principle||||d||||||
|||of the|of the|||Transactio|on in||exceed|method||||
|||||of the||||transacti||||Disclo||
|Related|Relatio|related|related-||Transaction|n amount|same||ed the|of the|Similar market||Disclosure|
|||||related-||||on||||sure||
|party|nship|-party|party||price|(RMB’0,0|kind of||approv|related-|price||index|
|||||party||||amount||||date||
|||transac|transacti|||00)|transacti||ed|party||||
|||||transacti||||(RMB’0||||||
|||tion|on||||ons||amoun|transacti||||
|||||on||||,000)||||||
||||||||||t|on||||
||||||||||||||See Annou|
||||||||||||||ncement N|
||||||||||||||o. 2017-|
|||||Mutual||||||Payment||28||
|CND|Shareh||Land||||||||||007 on|
|||Lease||negotiati|35,087,942.41|3,508.79|80.44%|6,000|No|by|35,087,942.41|Mar.||
|Group|older||use fee||||||||||www.cnin|
|||||on||||||month||2017||
||||||||||||||fo.com.cn|
||||||||||||||for details.|
|Total||||--|--|3,508.79|--|6,000|--|--|--|--|--|
|Details about return of large-||||||||||||||
|||||No||||||||||
|amount sales||||||||||||||
|Where the Company classifies||||||||||||||
|and estimates the total amount of||||||||||||||
|routine related-party transactions||||||||||||||
|||||No||||||||||
|for the reporting period, explain||||||||||||||
|the actual implementation during||||||||||||||
|the reporting period (if any)||||||||||||||
|Explain why the transaction price||||||||||||||
|is greatly different from the||||N/A||||||||||
|market price (if applicable)||||||||||||||

2. Related-party transactions arising from assets or equities acquisition and sale of assets
No such cases in the reporting period
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 3. Related-party transactions arising from joint investment in external parties
No such cases in the reporting period
4. Credits and liabilities with related parties
No such cases in the reporting period
5. Other significant related-party transactions
Unit:RMB’0,000
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Relatedparty|Relation|Type ofcredit/liability|Reason forcredit/liability||Whether|Openingbalance|Increase|Decrease|Closingbalance|
||||||there was|||||
||||||non-|||||
||||||operating|||||
||||||capital|||||
||||||occupation|||||
|CDF|The directorof theCompanyholds theposition ofvice presidentof CDF|Receivablefrom relatedparty|Deposits|No||121.19|22,011.89|22,112.50|20.58|

Index to the current announcements about the said related-party transactions disclosed
||||
|-|-|-|
|Title of current announcement|Disclosure date|Disclosure website|
|Announcement about the Estimating the Amountof the 2017 Daily Related Transactions|28 Mar. 2017|For details, seewww.cninfo.com.cn|

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 (3) Leasing
No such cases in the reporting period.
2. Significant guarantees
No such cases in the reporting period.
3. Other significant contracts
□Applicable√Not applicable
XV Social responsibilities
1. Particulars of the fulfillment of social responsibilities of targeted poverty alleviation
No such cases in the reporting period. And there is no such intention for the Company to carry out targeted poverty alleviation for the time being.
2. Particulars of environmental protection
Whether the Company and its subsidiaries are pollutant discharging units released by the Department of
Environmental Protection
No
XVI Other significant events
In the reporting period, the Company disclosed the following significant events on Securities Times, Ta Kung Pao (HK) and www.cninfo.com.cn:
||||
|-|-|-|
|Announcement No.|Title|Date|
|2017-001|Announcement on Voluntary Information Disclosure of BusinessVolume Data of December 2016|2017-01-12|
|2017-002|Announcement on Voluntary Information Disclosure of BusinessVolume Data of January 2017|2017-02-09|
|2017-003|Announcement on Voluntary Information Disclosure of BusinessVolume Data of February 2017|2017-03-10|
|2017-004|Announcement on Resolutions of the Seventh Meeting of the EighthBoard of Directors|2017-03-28|
|2017-005|Announcement on Resolutions of the Seventh Meeting of the EighthSupervisory Committee|2017-03-28|
|2017-006|Abstract of Annual Report 2016|2017-03-28|
|2017-007|Announcement on Expected Routine Related-Party Transactions for2017|2017-03-28|
|2017-008|Statement of Independent Director Nominees of the Ninth Board ofDirectors|2017-03-28|
|2017-009|Statement of Independent Director Candidates of the Ninth Board ofDirectors|2017-03-28|
|2017-010|Announcement on Voluntary Information Disclosure of Business|2017-04-11|

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017
||||
|-|-|-|
||Volume Data of March 2017||
|2017-011|Announcement on Abnormality of Stock Price|2017-04-13|
|2017-012|Announcement on Resolutions of the First Special Meeting of theEighth Board of Directors in 2017|2017-04-28|
|2017-013|The Text of Quarter One Report 2017|2017-04-28|
|2017-014|Announcement on Related-Party Transactions about SigningFinancial Service Agreement with Sinotrans & CSC Finance Co.,Ltd.|2017-04-28|
|2017-015|Announcement on Related-Party Transactions about renewing theFinancial Service Agreement with Zhongkai Finance Co., Ltd.|2017-04-28|
|2017-016|Notice of Annual General Meeting 2016|2017-04-28|
|2017-017|Announcement on Voluntary Information Disclosure of BusinessVolume Data of April 2017|2017-05-10|
|2017-018|Indicative Announcement on Convening Annual General Meeting2016|2017-05-27|
|2017-019|Announcement on Resolutions of Annual General Meeting 2016|2017-06-06|
|2017-020|Announcement on Resolutions of the First Meeting of the NinthBoard of Directors|2017-06-06|
|2017-021|Announcement on Resolutions of the First Meeting of the NinthSupervisory Committee|2017-06-06|
|2017-022|Announcement on Voluntary Information Disclosure of BusinessVolume Data of May 2017|2017-06-07|
|2017-023|Announcement on the Due Payment of 2016 Phase III Short-termFinancing Bonds|2017-06-09|

XVII Internal control progress
Pursuant to the “Internal Control Rules for Enterprises” and the mating guidelines, the Company officially implemented internal control, with details as follows:
1. Preparation phase
(1) The Company updated the name list of the members of internal control task groups. The chairman of the board was the head of the internal control project, with general managers, divisional leaders and departmental leaders as the members for the internal control steering committee. At the Company level, important professionals of all functional departments were the members for the task group. At the level of a subsidiary, the task group was headed by the general manager of the subsidiary, with important professionals in the subsidiary as the members for the task group.
(2) The work plan for internal control of 2017 was worked out.
(3) The subjects and internal control processes included in the internal control improvement task for 2017 were determined. According to its own business characteristics and importance and based on the internal control process improvement results of the previous years, subjects included in the internal control improvement task for 2017 were: the Company, Chiwan Container Terminal Co., Ltd., Shenzhen Chiwan Wharf Container Co. Ltd., Dongguan Chiwan Wharf Company Limited, Dongguan Chiwan Terminal Company Limited and Shenzhen Chiwan Tugboat Transportation Co.,Ltd. Internal control processes included in the internal control improvement and self-evaluation task for 2017 were: the organizational structure, development strategy, human resources, social responsibilities, corporate culture, capital operation, procurement, asset management, marketing,R&D, engineering projects, guarantees, outsourcing, financial reporting, overall budget, contract management, internal information transmission and the information system.
(4) Work flow charts were sent down to confirm the specific work and schedules for the members of the internal
control task groups.
(5) External and internal trainings were organized for members of the internal control task groups.
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 2. Implementation phase
(1) The internal control task groups of the Headquarters and the subsidiaries have reviewed the flow chart risk matrix assessment of last year, and have re-described work flows within the internal control improvement scope according to business changes this year so as to formulate an internal control risk matrix and a core flow chart for the Company for 2017.
(2) The internal control task groups of the Headquarters and the subsidiaries have carried out a walk-through test on the effectiveness of the internal control design to look for defects.
3. Internal control audit
The resolution of hiring Deloitte Touche Tohmatsu (special general partnership) as theCompany’s internal audit firm of 2017 was approved by the Seventh Meeting of the Eighth Board of Directors held on March 24, 2017 and Annual General Meeting 2016 held on June 5, 2017.
The Company carried out internal control work according to the time schedule of the 2017 internal control program of work. The progress of the project was in accordance with the plan of the work plan. There was no difference or delay.
XVIII Significant evens of subsidiaries
□Applicable√Not applicable
XIX The registration form of activities such as researches, communication and interviews received in the reporting period
|||||||
|-|-|-|-|-|-|
||||Type of||Main contents discussed and|
|Time|Place|Way||Object||
||||object||materials provided|
|||Telephone||||
|||||Individual||
|||communic|Individual||Basis conditions of operating,|
|From January 2017 to|Office of the|||investor||
|||ation|||investment and financial situation of|
|the end of June 2017|Company|||||
|||||Institutional|the Company|
|||Reception|Institution|||
|||||investor||

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section VI Share Changes& Particulars about Shareholders I Changes in shares
1. Changes in shares
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||Before||Increase/decrease (+, -)|||||After||
||||||Capitalizatio|||||
|||Percen|New|Bonus|||||Percen|
||Number||||n of capital|Other|Subtotal|Number||
|||tage|shares|shares|||||tage|
||||||reserve|||||
|I Restricted shares|304,538|0.05%|0|0|0|53,825|53,825|358,363|0.06%|
|1. Shares held by the||0%||||||||
||0||0|0|0|0|0|0|0%|
|State||||||||||
|2. Share held by state-||0%||||||||
||0||0|0|0|0|0|0|0%|
|owned corporations||||||||||
|3. Shares held by other||||||||||
||304,538|0.05%|0|0|0|53,825|53,825|358,363|0.06%|
|domestic investors||||||||||
|Among which:||||||||||
|Shares held by|0|0%|0|0|0|0|0|0|0%|
|domestic corporations||||||||||
|Shares held by||||||||||
||304,538|0.05%|0|0|0|53,825|53,825|358,363|0.06%|
|domestic individuals||||||||||
|4. Shares held by||0%|||||||0%|
||0||0|0|0|0|0|0||
|foreign investors||||||||||
|Among which: Shares||0%|||||||0%|
|held by foreign|0||0|0|0|0|0|0||
|corporations||||||||||
|Shares||0%|||||||0%|
|held by foreign|0||0|0|0|0|0|0||
|individuals||||||||||
|||99.95|||||||99.94|
||644,459,192||0|0|0|-53,825|-53,825|644,405,367||
|II Non-restricted shares||%|||||||%|
|1. Renminbi common||72.10|||||||72.10|
||464,866,612||0|0|0|-562|-562|464,866,050||
|shares||%|||||||%|
|2. Domestically listed||27.85|||||||27.84|
||179,592,580||0|0|0|-53,263|-53,263|179,539,317||
|foreign shares||%|||||||%|
|3. Overseas listed||0%|||||||0%|
||0||0|0|0|0|0|0||
|foreign shares||||||||||
|4. Others|0|0%|0|0|0|0|0|0|0%|
|III Total shares|644,763,730|100%||||||644,763,730|100%|

 Reasons for share changes:
On June 5, 2017, the Company held the Annual General Meeting 2016 for general election. The former director Qu Jiandong, the former executive Zhao Qiang and Nie Qi left office at the end of their terms. The shares they held were locked up in full.
Approval of the change in shares
□ Applicable√ Not applicable
Reason for the change in shares
□ Applicable√ Not applicable
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Effects of the change in shares on the basic EPS, diluted EPS, net assets per share attributable to common shareholders of the Company and other financial indexes over the last year and last period
□ Applicable√ Not applicable
Other contents that the Company considered necessary or were required by the securities regulatory authorities to disclose
□ Applicable√ Not applicable
2. Changes in restricted shares
Unit: share
||||||||
|-|-|-|-|-|-|-|
|||Amount of|The||||
||Number of|||Number of|||
|||lifted|increased||||
||restricted|||restricted|||
|||restricted|restricted||||
|Name of|shares at the|||shares at the||Date of lifting of|
|||shares in|shares in||Reason||
|shareholder|beginning of|||end of the||restricted shares|
|||the|the||||
||the reporting|||reporting|||
|||reporting|reporting||||
||period|||period|||
|||period|period||||
|||||||lifting all the|
||||||Lock-in by regulation|restricted shares six|
|Qu Jiandong|84,408|0|28,136|112,544|||
||||||for leaving office|months after leaving|
|||||||office|
||||||Lock up 75% of the||
||||||total number of||
|Zhang|||||||
||55,712|0|0|55,712|shares each year|-|
|Jianguo|||||||
||||||while he is the||
||||||director||
||||||Lock up 75% of the||
||||||total number of||
|Yuan Yuhui|10,530|0|0|10,530|shares each year|-|
||||||while he is the||
||||||independent director||
||||||Lock up 75% of the||
||||||total number of||
|Ni Keqin|21,909|0|0|21,909|shares each year|-|
||||||while he is the||
||||||supervisory director||
|||||||lifting all the|
||||||Lock-in by regulation|restricted shares six|
|Zhao Qiang|11,328|0|3,775|15,103|||
||||||for leaving office|months after leaving|
|||||||office|
|||||||lifting all the|
||||||Lock-in by regulation|restricted shares six|
|Nie Qi|65,745|0|21,914|87,659|||
||||||for leaving office|months after leaving|
|||||||office|
||||||Lock up 75% of the||
||||||total number of||
|Zhao|||||||
||48,716|0|0|48,716|shares each year|-|
|Chaoxiong|||||||
||||||while he is the||
||||||executive||
||||||Lock up 75% of the||
||||||total number of||
|Wang|||||||
||3,739|0|0|3,739|shares each year|-|
|Yongli|||||||
||||||while he is the||
||||||executive||

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017
||||||||
|-|-|-|-|-|-|-|
||||||Lock up 75% of the||
||||||total number of||
|Zhang Fang|2,451|0|0|2,451|shares each year|-|
||||||while he is the||
||||||executive||
|Total|304,538|0|53,825|358,363|--|--|

II Issuance and listing of securities
□ Applicable√ Not applicable
III Total number of shareholders and their shareholding
Unit: share
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
||||||||Total number of preference|||
|Total number of common||45,296 (34,647 A-shareholders and 10,649 B-|||||shareholders with resumed|||
||||||||||0|
|shareholders at period-end||shareholders)|||||voting rights at period-end|||
||||||||(if any)|||
|Shareholding of common shareholders holding more than 5% shares or the top 10 of common shareholders||||||||||
||||||Increase|||||
|||||Number of|and|Number of||||
||||Holdin|||||||
||Nature of|||shareholding|decrease of|shares held||Number of shares||
|Name of|||g|||||||
||||||||||Pledged or|
||shareholde|||at the end of|shares|subject to||held subject to||
|shareholder|||percent||||||frozen shares|
||r|||the reporting|during|trading||trading moratorium||
||||age (%)|||||||
|||||period|reporting|moratorium||||
||||||period|||||
|CHINANANSHANDEVELOPMENT(GROUP) INC.|State-ownedcorporation||32.52%|209,687,067|0|0||209,687,067||
||||||||||0|
|SHENZHENMALAISTORAGE CO.,LTD.|Domesticnon-state-ownedcorporation||25%|161,190,933|0|0||161,190,933||
||||||||||0|
|KEEN FIELDENTERPRISESLIMITED|Foreigncorporation||8.58%|55,314,208|0|0||55,314,208||
||||||||||0|
|CMBLSA REFTIFTEMPLETONASIAN GRW FDGTI 5496|Foreigncorporation||7.43%|47,914,954|0|0||47,914,954||
||||||||||Unknown|
|NORGES BANK|Foreigncorporation||0.43%|2,802,863|1,142,301|0||2,802,863||
||||||||||Unknown|
|BBH A/CVANGUARDEMERGINGMARKETSSTOCK INDEXFUND|Foreigncorporation||0.41%|2,617,518|0|0||2,617,518||
||||||||||Unknown|
|CHINAMERCHANTSSECURITIES(HK) CO., LTD.|State-ownedcorporation||0.38%|2,479,573|28,514|0||2,479,573||
||||||||||Unknown|

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|SINO-ITALYASSETSMANAGEMENT-ICBC-STRATEGICSELECTIONASSETSMANAGEMENTPRODUCTS NO.55|Other|0.27%|1,772,663||1,772,663|0|1,772,663||||
|||||||||||Unknown|
|CANADA POSTCORPORATIONREGISTEREDPENSION PLAN|Foreigncorporation|0.25%|1,631,396||0|0|1,631,396||||
|||||||||||Unknown|
|TEMPLETONASIANGROWTH FUND|Foreigncorporation|0.25%|1,628,170||-257,000|0|1,628,170||||
|||||||||||Unknown|
|Strategic investors or the|||||||||||
|general legal person due to the|||||||||||
|placement of new shares||N/A|||||||||
|become the top 10|||||||||||
|shareholders（if any）|||||||||||
|Explanation on associated||China Merchants Port Holdings Company Limited (CMPort) is a shareholder of China|||||||||
|relationship or/and persons||Nanshan Development (Group) Inc., and Shenzhen Malai Storage Co., Ltd. and Keen|||||||||
|acting in concert among the||Field Enterprises Limited are both wholly-funded subsidiaries of CMPort. Other than|||||||||
|above-mentioned||that, the Company does not know whether the other non-restricted shareholders are|||||||||
|shareholders:||related parties or not.|||||||||
|Particulars about shares held by top 10 common shareholders not subject to trading moratorium|||||||||||
|||||Number of shares held not subject to||||Type of share|||
|Name of shareholder||||trading moratorium at the end of the|||||||
|||||||||Type of share|Amount||
|||||period|||||||
|CHINA NANSHAN DEVELOPMENT(GROUP) INC.||||209,687,067|||||||
|||||||||A-share|209,687,067||
|SHENZHEN MALAI STORAGE CO.,LTD.||||161,190,933|||||||
|||||||||A-share|161,190,933||
|KEEN FIELD ENTERPRISES LIMITED||||55,314,208||||B-share|55,314,208||
|CMBLSA RE FTIF TEMPLETONASIAN GRW FD GTI 5496||||47,914,954|||||||
|||||||||B-share|47,914,954||
|NORGES BANK||||2,802,863||||B-share|2,802,863||
|BBH A/C VANGUARD EMERGINGMARKETS STOCK INDEX FUND||||2,617,518|||||||
|||||||||B-share|2,617,518||
|CHINA MERCHANTS SECURITIES(HK) CO., LTD.||||2,479,573|||||||
|||||||||B-share|2,479,573||
|SINO-ITALY ASSETS MANAGEMENT-ICBC-STRATEGIC SELECTIONASSETS MANAGEMENT PRODUCTSNO. 55||||1,772,663|||||||
|||||||||A-share|1,772,663||
|CANADA POST CORPORATIONREGISTERED PENSION PLAN||||1,631,396|||||||
|||||||||B-share|1,631,396||
|TEMPLETON ASIAN GROWTH FUND||||1,628,170||||B-share|1,628,170||
|Explanation on associated relationship|||||||||||
|||||China Merchants Port Holdings Company Limited (CMPort) is a|||||||
|among the top ten shareholders of tradable|||||||||||
|||||shareholder of China Nanshan Development (Group) Inc., and Shenzhen|||||||
|share not subject to trading moratorium, as|||||||||||
|||||Malai Storage Co., Ltd. and Keen Field Enterprises Limited are both|||||||
|well as among the top ten shareholders of|||||||||||
|||||wholly-funded subsidiaries of CMPort. Other than that, the Company does|||||||
|tradable share not subject to trading|||||||||||
|||||not know whether the other non-restricted shareholders are related parties|||||||
|moratorium and top ten shareholders, or|||||||||||
|||||or not.|||||||
|explanation on acting-in-concert|||||||||||
|Particular about shareholder participate in||||N/A|||||||

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017
||
|-|
|the securities lending and borrowing|
|business (if any)|

None of the top ten common shareholders and the top ten common shareholders not subject to trading moratorium of the Company carried out any agreed buy-back in the reporting period.
IV Change of the controlling shareholder or the actual controller
No such cases in the reporting period.
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section VII Preference Shares
□ Applicable√ Not applicable
The Company had no preference shares in the reporting period.
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section VIII Directors, Supervisors and Senior Management Staff I Changes in the shareholdings of directors, supervisors and senior management staff
□ Applicable√ Not applicable
There was no change in shareholding of Directors, Supervisors, Senior Management Staffs and Employees, for details, please refer to 2016 Annual Report
II Particulars about Changes of Directors, Supervisors and Senior Executives
||||||
|-|-|-|-|-|
|Name|Position|Type of change|Date of change|Reason for change|
|Qu Jiandong||leave his post for the||leave his post for the expiration|
||Director||2017-06-05||
|||expiration of his term||of his term|
|||leave his post for the||leave his post for the expiration|
|Zhao Qiang|GM||2017-06-05||
|||expiration of his term||of his term|
|||leave his post for the||leave his post for the expiration|
|Nie Qi|Vice GM||2017-06-05||
|||expiration of his term||of his term|

Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section IX Corporate Bonds
Are there any corporate bonds publicly offered and listed on the stock exchange, which were undue before the approval date of this Report or were due but could not be redeemed in full?
No.
Shenzhen Chiwan Wharf Holdings Limited Semi-Annual Report 2017 Section X Financial Report
IAuditor’s report
The semi-annual financial report has not been audited by a CPAs firm.
II Financial statements (see the attached)
Section XI Documents Available for Reference
I The 2017 Semi-Annual Report carrying the signature of Liu Bin, the Managing Director;
II The 2017 Semi-Annual Financial Report carrying the signatures of theCompany’s Legal
Representative, Chief Financial Officer and Financial Manager; and
III Original copies of all documents and announcements disclosed during the reporting period on Securities Times, Ta Kung Pao and www.cninfo.com.cn.
For and on behalf of the Board Liu Bin
Managing Director
Shenzhen Chiwan Wharf Holdings Limited Dated 25 August 2017
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
Contents Pages
The Company and consolidated balance sheets 2 - 3
The Company and consolidated income statements 4 - 5
The Company and consolidated cash flow statements 6 - 7
The Company and consolidated statements of changes in
shareholders' equity 8 - 9
Notes to the financial statements 10 - 97
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
AT 30 JUNE 2017
Consolidated Balance Sheet
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||LIABILITIES AND||||
|ASSETS|Notes|30 Jun. 2017|31 Dec. 2016|SHAREHOLDERS' EQUITY|Notes|30 Jun. 2017|31 Dec. 2016|
|Current Assets:||||Current Liabilities:||||
||(V)1|593,542,501.41|426,036,702.87|||-|-|
|Cash and bank balances||||Short-term borrowings||||
||(V)2|-|500,000.00||(V)20|98,590,197.10|89,444,597.10|
|Notes receivable||||Accounts payable||||
||(V)3|243,504,003.91|173,934,496.63||(V)21|129,822,174.32|30,668,212.67|
|Accounts receivable||||Receipts in advance||||
||(V)4|1,804,143.70|2,639,758.53||(V)22|57,049,136.82|88,578,492.26|
|Prepayments||||Employee benefits payable||||
||(V)5|1,264,914.26|-||(V)23|59,511,807.19|48,504,829.80|
|Interest receivable||||Taxes payable||||
||(V)6|420,000.00|-||(V)24|6,371,260.30|2,567,260.28|
|Dividends receivable||||Interest payable||||
||(V)7|18,699,162.98|26,647,869.01||(V)25|319,802,810.47|-|
|Other receivables||||Dividends payable||||
||(V)8|17,926,504.16|14,771,410.09||(V)26|75,105,519.60|74,590,394.09|
|Inventories||||Other payables||||
||(V)9|19,698,853.34|16,832,212.36|Non-current liabilities due||-|-|
|Other current assets||||||||
|||||within one year||||
|||896,860,083.76|661,362,449.49||(V)27|-|250,000,000.00|
|Total current assets||||Other current liabilities||||
|||||||746,252,905.80|584,353,786.20|
|Non-current Assets:||||Total current liabilities||||
||(V)10|23,709,200.00|22,459,200.00|||||
|Available-for-sale financial assets||||Non-current Liabilities:||||
||(V)11|1,463,702,326.87|1,490,427,656.53||(V)28|298,629,041.09|298,331,506.85|
|Long-term equity investments||||Bonds payable||||
||(V)12|23,233,997.73|23,646,913.77||(V)29|33,327,666.64|34,326,860.44|
|Investment property||||Special payables||||
||(V)13|2,990,556,886.41|3,036,813,842.54||(V)30|60,823,779.90|64,613,319.88|
|Fixed assets||||Deferred income||||
||(V)14|183,708,222.05|164,604,358.31||(V)18|2,170,000.00|1,857,500.00|
|Construction in progress||||Deferred tax liabilities||||
||(V)15|992,031,529.45|1,010,767,451.01|||394,950,487.63|399,129,187.17|
|Intangible assets||||Total non-current liabilities||||
||(V)16|10,858,898.17|10,858,898.17|||1,141,203,393.43|983,482,973.37|
|Goodwill||||TOTAL LIABILITIES||||
||(V)17|53,905,084.94|54,944,476.64|||||
|Long-term prepaid expenses||||SHAREHOLDERS' EQUITY:||||
||(V)18|12,172,333.47|12,221,758.47||(V)31|644,763,730.00|644,763,730.00|
|Deferred tax assets||||Share capital||||
||(V)19|133,682,985.68|132,369,704.86||(V)32|167,480,381.25|167,480,381.25|
|Other non-current assets||||Capital reserve||||
|||5,887,561,464.77|5,959,114,260.30||(V)33|(7,102,146.43)|(8,039,646.43)|
|Total non-current assets||||Other comprehensive income||||
||||||(V)34|8,162,628.00|4,145,765.65|
|||||Special reserve||||
||||||(V)35|520,074,434.56|520,074,434.56|
|||||Surplus reserve||||
||||||(V)36|3,337,995,910.48|3,381,390,887.86|
|||||Unappropriated profit||||
|||||Total shareholders' equity attributable to||4,671,374,937.86|4,709,815,552.89|
|||||equity holders of the parent||||
|||||||971,843,217.24|927,178,183.53|
|||||Minority interests||||
|||||||5,643,218,155.10|5,636,993,736.42|
|||||TOTAL SHAREHOLDERS' EQUITY:||||
|||6,784,421,548.53|6,620,476,709.79|TOTAL LIABILITIES AND||6,784,421,548.53|6,620,476,709.79|
|TOTAL ASSETS||||||||
|||||SHAREHOLDERS' EQUITY||||

The accompanying notes form part of the financial statements.
The financial statements on pages 2 to 97 were signed by the following:
LegalRepresentative：Liu Bin
Chief FinancialOfficer：Zhang Fang
Head of AccountingDepartment：Li Xiaopeng
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
AT 30 JUNE 2017
Balance Sheet of the Company
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||||LIABILITIES AND||||
|ASSETS|Notes|30 Jun. 2017|31 Dec. 2016|SHAREHOLDERS' EQUITY|Notes|30 Jun. 2017|31 Dec. 2016|
|Current Assets:||||Current Liabilities:||||
|||58,389,908.02|97,401,657.09|||17,674,905.37|15,743,751.91|
|Cash and bank balances||||Accounts payable||||
||(XIV)1|24,161,523.24|14,730,412.29|||-|-|
|Accounts receivable||||Receipts in advance||||
|||-|175,000.00|||38,826,304.69|53,761,846.04|
|Prepayments||||Employee benefits payable||||
|||-|-|||4,995,268.84|1,906,748.15|
|Interest receivable||||Taxes payable||||
|||420,000.00|134,702,787.76|||7,052,536.22|5,657,953.71|
|Dividends receivable||||Interest payable||||
||(XIV)2|563,789,045.88|582,452,104.00|||357,411,350.73|37,608,540.65|
|Other receivables||||Dividend payable||||
|||371,317.52|394,234.74|||307,787,199.55|358,982,632.32|
|Inventories||||Other payables||||
|||1,904,089.65|997,740.76|||-|250,000,000.00|
|Other current assets||||Other current liabilities||||
|||649,035,884.31|830,853,936.64|||733,747,565.40|723,661,472.78|
|Total current assets||||Total current liabilities||||
|Non-current Assets:||||Non-current Liabilities:||||
|||23,709,200.00|22,459,200.00|||298,629,041.09|298,331,506.85|
|Available-for-sale financial assets||||Bonds payable||||
|||11,004,284.75|11,004,284.75|||151,378,000.00|116,662,000.00|
|Long-term receivables||||Long-term payables||||
||(XIV)3|2,012,601,688.02|2,032,600,191.97|||2,170,000.00|1,857,500.00|
|Long-term equity investments||||Deferred tax liabilities||||
|||13,358,471.82|13,600,159.92|||452,177,041.09|416,851,006.85|
|Investment property||||Total non-current liabilities||||
|||209,696,916.29|179,815,891.12|||1,185,924,606.49|1,140,512,479.63|
|Fixed assets||||TOTAL LIABILITIES||||
|||2,615,787.94|29,437,068.97|||||
|Construction in progress||||SHAREHOLDERS' EQUITY||||
|||61,422,417.52|62,890,018.39|||644,763,730.00|644,763,730.00|
|Intangible assets||||Share capital||||
|||4,066,779.79|4,156,590.13|||240,001,254.59|240,001,254.59|
|Long-term prepaid expenses||||Capital reserve||||
|||2,338,475,546.13|2,355,963,405.25|||6,610,000.00|5,672,500.00|
|Total non-current assets||||Other Comprehensive Income||||
|||||||1,314,835.73|1,027,543.25|
|||||Special reserve||||
|||||||520,074,434.56|520,074,434.56|
|||||Surplus reserve||||
|||||||388,822,569.07|634,765,399.86|
|||||Unappropriated profit||||
|||||TOTAL SHAREHOLDERS'||1,801,586,823.95|2,046,304,862.26|
|||||EQUITY||||
|||2,987,511,430.44|3,186,817,341.89|TOTAL LIABILITIES AND||2,987,511,430.44|3,186,817,341.89|
|TOTAL ASSETS||||||||
|||||SHAREHOLDERS' EQUITY||||

The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2017
Consolidated Income Statement
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|ITEM||Notes||Jan.-Jun. 2017||Jan.-Jun. 2016|
|I. Total operating income|(V)37||929,608,498.91||904,809,652.24||
|Less: Operating costs|(V)37||535,972,835.46||492,158,524.59||
|Business taxes and levies|(V)38||5,099,769.02||3,167,942.41||
|Administrative expenses|(V)39||72,324,731.18||81,947,868.71||
|Financial expenses|(V)40||10,152,388.82||14,253,614.35||
|Impairment losses of assets|(V)41||(1,908,239.31)||288,044.16||
|Add: Investment income|(V)42||69,509,957.45||69,300,256.41||
|Including: Income from investments in associates|(V)42||60,092,957.45||63,008,068.56||
|and joint ventures|||||||
|II. Operating profit|||377,476,971.19||382,293,914.43||
|Add: Non-operating income|(V)43||2,407,216.29||2,639,213.81||
|Including: Gains from disposal of non-current assets|(V)43||293,053.57||321,539.16||
|Less: Non-operating expenses|(V)44||742,624.36||501,465.63||
|Including: Losses from disposal of non-current assets|(V)44||741,487.52||497,708.60||
|III. Gross profit|||379,141,563.12||384,431,662.61||
|Less: Income tax expenses|(V)45||58,896,433.80||49,661,006.76||
|IV. Net profit|||320,245,129.32||334,770,655.85||
|Net profit attributable to shareholders of the parent|||276,407,832.70||266,535,506.97||
|Profit or loss attributable to minority shareholders|||43,837,296.62||68,235,148.88||
|V. Amount of Other Comprehensive Net Income After Tax:|(V)46||937,500.00||(307,500.00)||
|Amount of other comprehensive net income after tax attributable|||937,500.00||(307,500.00)||
|to equity holders of the parent|||||||
|(I) Other comprehensive income that will not be reclassified|||-||-||
|subsequently to profit or loss|||||||
|(i) Change as a result of remeasurement of the net defined|||-||-||
|benefit plan liability or asset|||||||
|(ii) Share of other comprehensive income of the investee under|||-||-||
|the equity method that will not be reclassified to profit or|||||||
|loss|||||||
|(II) Other comprehensive income that will be reclassified|||937,500.00||(307,500.00)||
|subsequently to profit or loss|||||||
|(i) Share of other comprehensive income of the investee under|||-||-||
|the equity method that will be reclassified to profit or loss|||||||
|(ii) Gains or losses on changes in fair value of available-for-sale|||937,500.00||(307,500.00)||
|financial assets|||||||
|(iii) Translation differences of financial statements denominated|||-||-||
|in foreign currencies|||||||
|Amount of other comprehensive net income after tax attributable|||-||-||
|to minority shareholders|||||||
|VI. Total comprehensive income attributable to:|||321,182,629.32||334,463,155.85||
|Shareholders of the parent|||277,345,332.70||266,228,006.97||
|Minority shareholders|||43,837,296.62||68,235,148.88||
|VII. Earnings per share:|||||||
|(I) Basic earnings per share|||0.429||0.413||
|(II) Diluted earnings per share|||0.429||0.413||

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2017
Income Statement of the Company
Unit: RMB
|||||||
|-|-|-|-|-|-|
|ITEM||Notes|Jan.-Jun. 2017||Jan.-Jun. 2016|
|I. Total operating income|(XIV)4||120,036,337.34|105,710,030.13||
|Less: Operating costs|(XIV)4||61,993,764.64|64,949,950.84||
|Business taxes and levies|||1,295,149.90|1,547,777.62||
|Administrative expenses|||30,763,723.53|33,379,091.02||
|Financial expenses|||(3,567,095.64)|5,094,574.72||
|Impairment loss of assets|||(7,730.22)|1,895.24||
|Add: Investment income|(XIV)5||43,578,170.47|49,037,666.37||
|Including: Income from investments in associates|(XIV)5||34,161,170.47|42,745,478.52||
|and joint ventures||||||
|II. Operating profit|||73,136,695.60|49,774,407.06||
|Add: Non-operating income|||551,196.35|1,631,374.22||
|Including: Gains from disposal of non-current assets|||304,464.57|171,539.16||
|Less: Non-operating expenses|||224,356.40|232,526.52||
|Including: Losses from disposal of non-current assets|||223,219.56|232,526.52||
|III. Gross profit|||73,463,535.55|51,173,254.76||
|Less: Income tax expenses|||(396,443.74)|(22,956.92)||
|IV. Net profit|||73,859,979.29|51,196,211.68||
|V. Amount of Other Comprehensive Net Income After Tax:|||937,500.00|(307,500.00)||
|(I) Other comprehensive income that will not be|||-|-||
|reclassified subsequently to profit or loss||||||
|(i) Change as a result of remeasurement of the net|||-|-||
|defined benefit plan liability or asset||||||
|(ii) Share of other comprehensive income of the investee|||-|-||
|under the equity method that will not be reclassified to||||||
|profit or loss||||||
|(II) Other comprehensive income that will be reclassified|||937,500.00|(307,500.00)||
|subsequently to profit or loss||||||
|(i) Share of other comprehensive income of the investee|||-|-||
|under the equity method that will be reclassified to||||||
|profit or loss||||||
|(ii) Gains or losses on changes in fair value of available-|||937,500.00|(307,500.00)||
|for-sale financial assets||||||
|(iii) Translation differences of financial statements|||-|-||
|denominated in foreign currencies||||||
|VI. Total comprehensive income|||74,797,479.29|50,888,711.68||

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2016
Consolidated Cash Flow Statement
Unit: RMB
|||||
|-|-|-|-|
|ITEM|Notes|Jan.-Jun. 2017|Jan.-Jun. 2016|
|I. Cash Flows from Operating Activities:||||
|Cash receipts from sales of goods and rendering of services||992,636,284.58|909,202,402.61|
|Other cash receipts relating to operating activities|(V)48(1)|30,298,093.23|5,778,446.67|
|Sub-total of cash inflows||1,022,934,377.81|914,980,849.28|
|Cash payments for goods purchased and services received||309,960,731.31|257,633,025.65|
|Cash payments to and on behalf of employees||193,009,250.76|184,930,609.51|
|Payments of all types of taxes||66,501,423.23|57,624,012.99|
|Other cash payments relating to operating activities|(V)48(2)|33,931,192.60|46,135,957.33|
|Sub-total of cash outflows||603,402,597.90|546,323,605.48|
|Net Cash Flows from Operating Activities|(V)49(1)|419,531,779.91|368,657,243.80|
|II. Cash Flows from Investing Activities:||||
|Cash receipts from investments income||93,324,546.74|77,197,846.38|
|Net cash receipts from disposal of fixed assets, intangible assets||2,650,703.87|1,916,084.08|
|and other long-term assets||||
|Sub-total of cash inflows||95,975,250.61|79,113,930.46|
|Cash payments to acquire or construct fixed assets, intangible||88,481,440.32|62,448,676.28|
|assets and other long-term assets||||
|Sub-total of cash outflows||88,481,440.32|62,448,676.28|
|Net Cash Flows from Investing Activities||7,493,810.29|16,665,254.18|
|III. Cash Flows from Financing Activities:||||
|Cash receipts from borrowings||30,000,000.00|100,000,000.00|
|Cash receipts from issue of bonds||-|-|
|Sub-total of cash inflows||30,000,000.00|100,000,000.00|
|Cash repayments of borrowings||280,000,000.00|744,466,721.71|
|Cash payments for distribution of dividends or profit or interest||4,933,219.18|20,324,960.51|
|Including: Payments for distribution of dividends or profit to||-|-|
|minorities||||
|Other cash payments relating to financing activities|(V)48(3)|15,792.33|25,986.89|
|Sub-total of cash outflows||284,949,011.51|764,817,669.11|
|Net Cash Flows from Financing Activities||(254,949,011.51)|(664,817,669.11)|
|||(4,570,780.15)|2,229,074.46|
|IV. Effect of Foreign Exchange Rate Changes on Cash and Cash||||
|Equivalents||||
|V. Net Increase (Decrease)in Cash and Cash Equivalents||167,505,798.54|(277,266,096.67)|
|Add: Opening balance of Cash and Cash Equivalents|(V)49(2)|426,036,702.87|683,138,123.66|
|VI. Closing Balance of Cash and Cash Equivalents|(V)49(2)|593,542,501.41|405,872,026.99|

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2017
Cash Flow Statement of the Company
Unit: RMB
|||||
|-|-|-|-|
|ITEM|Notes|Jan.-Jun. 2017|Jan.-Jun. 2016|
|I. Cash Flows from Operating Activities:||||
|Cash receipts from sales of goods and rendering of services||114,863,518.00|115,849,225.53|
|Other cash receipts relating to operating activities||424,203,588.78|462,768,621.77|
|Sub-total of cash inflows||539,067,106.78|578,617,847.30|
|Cash payments for goods purchased and services received||31,930,629.72|31,533,042.73|
|Cash payments to and on behalf of employees||61,467,607.51|63,282,140.23|
|Payments of all types of taxes||4,414,781.60|4,088,453.58|
|Other cash payments relating to operating activities||457,615,731.81|368,439,595.82|
|Sub-total of cash outflows||555,428,750.64|467,343,232.36|
|Net Cash Flows from Operating Activities|(XIV)8|(16,361,643.86)|111,274,614.94|
|II. Cash Flows from Investing Activities:||||
|Cash receipts from investments income||197,859,462.18|151,872,638.18|
|Net cash receipts from disposal of fixed assets, intangible assets||2,693,776.59|1,677,137.08|
|and other long-term assets||||
|Cash receipts from disposal of subsidiaries and other business units||-|-|
|Sub-total of cash inflows||200,553,238.77|153,549,775.26|
|Cash payments to acquire or construct fixed assets,||3,621,231.58|2,409,879.75|
|intangible assets and other long-term assets||||
|Sub-total of cash outflows||3,621,231.58|2,409,879.75|
|Net Cash Flows from Investing Activities||196,932,007.19|151,139,895.51|
|III. Cash Flows from Financing Activities:||||
|Cash receipts from borrowings||64,715,999.99|219,658,000.00|
|Cash receipts from issue of bonds||-|-|
|Sub-total of cash inflows||64,715,999.99|219,658,000.00|
|Cash repayments of borrowings||280,000,000.00|600,000,000.00|
|Cash payments for distribution of dividends or profit or interest||4,933,219.18|19,798,230.88|
|Other cash payments relating to financing activities||15,792.33|25,986.89|
|Sub-total of cash outflows||284,949,011.51|619,824,217.77|
|Net Cash Flows from Financing Activities||(220,233,011.52)|(400,166,217.77)|
|IV. Effect of Foreign Exchange Rate Changes on Cash||650,899.12|(3,471,028.83)|
|and Cash Equivalents||||
|V. Net Increase(Decrease) in Cash and Cash Equivalents||(39,011,749.07)|(141,222,736.15)|
|Add: Opening balance of Cash and Cash Equivalents||97,401,657.09|331,615,767.60|
|VI. Closing Balance of Cash and Cash Equivalents||58,389,908.02|190,393,031.45|

 The accompanying notes form part of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2017
Consolidated Statement of Changes in Shareholders' Equity
Unit: RMB
|||||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ITEM||Amount of Jan.-Jun.2017||||||||||Amount of last year||||||||||
|||Attributable to shareholders of the parent||||||||Minorityinterests|Totalshareholders'equity|Attributable to shareholders of the parent||||||||Minorityinterests|Totalshareholders'equity|
|||Share capital|Capital reserve||Other|Special reserve|Surplusreserve|Unappropriatedprofit|Others|||Share capital|Capital reserve||Other|Specialreserve|Surplus reserve|Unappropriatedprofit|Others|||
||||||comprehensive||||||||||comprehensive|||||||
||||||income||||||||||income|||||||
|I. Closing balance of the preceding year||644,763,730.00|167,480,381.25|(8,039,646.43)||4,145,765.65|520,074,434.56|3,381,390,887.86|-|927,178,183.53|5,636,993,736.42|644,763,730.00|165,564,739.15|(7,889,646.43)||3,719,755.58|520,074,434.56|3,113,367,524.19|-|789,709,893.07|5,229,310,430.12|
|Add: Changes in accounting policies||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|Corrections of prior period errors||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|Others||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|II. Opening balance of the year||644,763,730.00|167,480,381.25|(8,039,646.43)||4,145,765.65|520,074,434.56|3,381,390,887.86|-|927,178,183.53|5,636,993,736.42|644,763,730.00|165,564,739.15|(7,889,646.43)||3,719,755.58|520,074,434.56|3,113,367,524.19|-|789,709,893.07|5,229,310,430.12|
|III. Changes for the year||-|-|937,500.00||4,016,862.35|-|(43,394,977.38)|-|44,665,033.71|6,224,418.68|-|1,915,642.10|(150,000.00)||426,010.07|-|268,023,363.67|-|137,468,290.46|407,683,306.30|
|(I) Total comprehensive income||-|-|937,500.00||-|-|276,407,832.70|-|43,837,296.62|321,182,629.32|-|-|(150,000.00)||-|-|532,376,492.97|-|137,473,210.75|669,699,703.72|
||(II) Owners’ contributions and reduction in|-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
||capital|||||||||||||||||||||
|1. Capital contribution from shareholders||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
||2. Share-based payment recognised in|-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
||shareholders' equity|||||||||||||||||||||
|3. Others||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|(III) Profit distribution||-|-|-||-|-|(319,802,810.08)|-|-|(319,802,810.08)|-|-|-||-|-|(264,353,129.30)|-|-|(264,353,129.30)|
|1. Transfer to surplus reserve||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|2. Transfer to general reserve||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|3. Distributions to shareholders||-|-|-||-|-|(319,802,810.08)|-|-|(319,802,810.08)|-|-|-||-|-|(264,353,129.30)|-|-|(264,353,129.30)|
|4. Others||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|(IV) Transfers within shareholders' equity||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|1. Capitalisation of capital reserve||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|2. Capitalisation of surplus reserve||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|3. Loss made up by surplus reserve||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|4. Others||-|-|-||-|-|-|-|-|-|-|-|-||-|-|-|-|-|-|
|(V) Special reserve||-|-|-||4,016,862.35|-|-|-|827,737.09|4,844,599.44|-|-|-||426,010.07|-|-|-|(4,920.29)|421,089.78|
|1. Withdrawn in the period||-|-|-||9,845,498.98|-|-|-|1,953,624.81|11,799,123.79|-|-|-||19,844,261.39|-|-|-|3,842,861.21|23,687,122.60|
|2. Utilized in the period||-|-|-||(5,828,636.63)|-|-|-|(1,125,887.72)|(6,954,524.35)|-|-|-||(19,418,251.32)|-|-|-|(3,847,781.50)|(23,266,032.82)|
|(VI) Others||-|-|-||-|-|-|-|-|-|-|1,915,642.10|-||-|-|-|-|-|1,915,642.10|
|IV. Closing balance of the year||644,763,730.00|167,480,381.25|(7,102,146.43)||8,162,628.00|520,074,434.56|3,337,995,910.48|-|971,843,217.24|5,643,218,155.10|644,763,730.00|167,480,381.25|(8,039,646.43)||4,145,765.65|520,074,434.56|3,381,390,887.86|-|927,178,183.53|5,636,993,736.42|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
FOR THE YEAR ENDED 30 JUNE 2017
Statement of Changes in Shareholders' Equity of the Company
Unit: RMB
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|ITEM||Amount of Jan.-Jun.2017||||||||Amount of last year||||||||
|||Share capital|Capital reserve||Other|Special reserve|Surplus reserve|Unappropriatedprofit|Total shareholders'equity|Share capital|Capital reserve||Other|Special reserve|Surplus reserve|Unappropriatedprofit|Total shareholders'equity|
||||||comprehensive||||||||comprehensive|||||
||||||income||||||||income|||||
|I. Closing balance of the preceding year||644,763,730.00|240,001,254.59|5,672,500.00||1,027,543.25|520,074,434.56|634,765,399.86|2,046,304,862.26|644,763,730.00|239,043,433.54|5,822,500.00||1,465,450.61|520,074,434.56|703,644,298.05|2,114,813,846.76|
|Add: Changes in accounting policies||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|Corrections of prior period errors||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|Others||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|II. Opening balance of the year||644,763,730.00|240,001,254.59|5,672,500.00||1,027,543.25|520,074,434.56|634,765,399.86|2,046,304,862.26|644,763,730.00|239,043,433.54|5,822,500.00||1,465,450.61|520,074,434.56|703,644,298.05|2,114,813,846.76|
|III. Changes for the year||-|-|937,500.00||287,292.48|-|(245,942,830.79)|(244,718,038.31)|-|957,821.05|(150,000.00)||(437,907.36)|-|(68,878,898.19)|(68,508,984.50)|
|(I) Total comprehensive income||-|-|937,500.00||-|-|73,859,979.29|74,797,479.29|-|-|(150,000.00)||-|-|195,474,231.11|195,324,231.11|
||(II) Owners’ contributions and reduction|-|-|-||-|-|-|-|-|-|-||-|-|-|-|
||in capital|||||||||||||||||
|1. Capital contribution from shareholders||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|2. Share-based payment recognised inshareholders' equity||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|3. Others||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|(III) Profit distribution||-|-|-||-|-|(319,802,810.08)|(319,802,810.08)|-|-|-||-|-|(264,353,129.30)|(264,353,129.30)|
|1. Transfer to surplus reserve||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|2. Transfer to general reserve||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|3. Distributions to shareholders||-|-|-||-|-|(319,802,810.08)|(319,802,810.08)|-|-|-||-|-|(264,353,129.30)|(264,353,129.30)|
|4. Others||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|(IV) Transfers within shareholders' equity||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|1. Capitalisation of capital reserve||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|2. Capitalisation of surplus reserve||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|3. Loss made up by surplus reserve||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|4. Others||-|-|-||-|-|-|-|-|-|-||-|-|-|-|
|(V) Special reserve||-|-|-||287,292.48|-|-|287,292.48|-|-|-||(437,907.36)|-|-|(437,907.36)|
|1. Transfer to special reserve in the period||-|-|-||1,119,925.68|-|-|1,119,925.68|-|-|-||2,621,610.60|-|-|2,621,610.60|
|2. Utilized in the period||-|-|-||(832,633.20)|-|-|(832,633.20)|-|-|-||(3,059,517.96)|-|-|(3,059,517.96)|
|(VI) Others||-|-|-||-|-|-|-|-|957,821.05|-||-|-|-|957,821.05|
|IV. Closing balance of the year||644,763,730.00|240,001,254.59|6,610,000.00||1,314,835.73|520,074,434.56|388,822,569.07|1,801,586,823.95|644,763,730.00|240,001,254.59|5,672,500.00||1,027,543.25|520,074,434.56|634,765,399.86|2,046,304,862.26|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(I) GENERAL INFORMATION OF THE COMPANY
Shenzhen Chiwan Wharf Holdings Limited (hereinafter referred to as the "Company") was a stock limited company incorporated on 16 January 1993.
The headquarters of the Company is located in Shenzhen Guangdong Province. The Company and its subsidiaries (collectively the "Group") are principally engaged in the provision of cargo handling, warehousing, land and sea transportation services, cargo packing, agency business and other services.
The scope of consolidated financial statements in the current period involves 10 subsidiaries. See Note (VII) "Equity in other entities" for details.
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS
Basis of preparation of financial statements
The Group has adopted the Accounting Standards for Business Enterprises issued by the Ministry of Finance (MoF) including the new and modified ones in 2014. In addition, the Group has disclosed relevant financial information in accordance with Information Disclosure and Presentation Rules for Companies Offering Securities to the Public No. 15-General Provisions on Financial Reporting (Revised in 2014).
Basis of accounting and principle of measurement
The Group has adopted the accrual basis of accounting. Except for certain financial instruments which are measured at fair value, the Group adopts the historical cost as the principle of measurement of the financial statements. Upon being restructured into a stock company, the fixed assets and intangible assets initially contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department. Where assets are impaired, provisions for asset impairment are made in accordance with the relevant requirements.
Where the historical cost is adopted as the measurement basis, assets are recorded at the amount of cash or cash equivalents paid or the fair value of the consideration given to acquire them at the time of their acquisition. Liabilities are recorded at the amount of proceeds or assets received or the contractual amounts for assuming the present obligation, or, at the amounts of cash or cash equivalents expected to be paid to settle the liabilities in the normal course of business. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, regardless of whether that price is directly observable or estimated using valuation technique. Fair value measurement and/or disclosure in the financial statements are determined according to the above basis.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(II) BASIS OF PREPARATION OF FINANCIAL STATEMENTS - continueed
Fair value measurements are categorised into Level 1, 2 or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:
Level 1 inputs are unadjusted quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
Going Concern
The Group evaluated its going concern ability within 12 months since 30 Jun. 2017. No events or circumstances are noted, which could cause significant doubt upon the entity's ability to continue as going concern. Hence, the financial statements have been prepared on a going concern basis.
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES
All the following significant accounting policies and accounting estimates are based on Accounting Standards for Business Enterprises.
1.Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with ASBE, and present truly and completely, the Company's and consolidated financial position as of 30 June 2017, and the Company's and consolidated results of operations and cash flows for six months ended 30 June 2017.
2. Accounting period
The Group has adopted the calendar year as its accounting year, e.g. from 1 January to 31 December.
.
3. Operating 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 operate. Therefore, the Company and its subsidiaries choose RMB as their
functional currency. The Group adopts RMB to prepare its financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
5. The accounting treatment of business combinations involving or not involving enterprises under common control
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 acquire. Where a business combination not involving enterprises under common control is achieved in stages that involve multiple transactions, the cost of combination is the sum of the consideration paid at the acquisition date and the fair value at the acquisition date of the acquirer's previously held interest in the acquiree. The intermediary expenses (fees in respect of auditing, legal services, valuation and consultancy services, etc.) and other administrative expenses attributable to the business combination are recognized in profit or loss in the periods when they are incurred.
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.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
5. The accounting treatment of business combinations involving or not involving enterprises under common control - continued
5.2 Business combinations not involving enterprises under common control and goodwill - continued
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net assets, the difference is treated as an asset and recognized as goodwill, which is measured at cost on initial recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer reassesses the measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If after that reassessment, the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment losses, and is presented separately in the consolidated financial statements.
6. Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control exists when the investor has power over the investee; is exposed, or has rights, to variable returns from its involvement with the investee; and has the ability to use its power over the investee to affect its returns. The Group reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes of the above elements of the definition of control.
Consolidation of a subsidiary begins when the Group obtains control over the subsidiaries and ceases when the Group loses control of the subsidiary.
For a subsidiary already disposed of by the Group, the operating results and cash flows before the date of disposal (the date when control is lost) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
For subsidiaries acquired through a business combination involving enterprises not under common control, the operating results and cash flows from the acquisition date (the date when control is obtained) are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
6. Preparation of consolidated financial statements - continued
No matter when the business combination occurs in the reporting period, subsidiaries acquired through a business combination involving enterprises under common control are included in the Group's scope of consolidation as if they had been included in the scope of consolidation from the date when they first came under the common control of the ultimate controlling party. Their operating results and cash flows from the date when they first came under the common control of the ultimate controlling party are included in the consolidated income statement and consolidated statement of cash flows, as appropriate.
The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the uniform accounting policies and accounting periods set out by the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the parent is treated as minority interests and presented as "minority interests" in the consolidated balance sheet under
shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable to minority interests is presented as "minority interests" in the consolidated income statement under the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the minority shareholders' portion of the opening balance of shareholders' equity of the subsidiary, the excess amount is still allocated against minority interests.
Acquisition of minority interests or disposals of interests in a subsidiary that do not result in the loss of control over the subsidiary are accounted for as equity transactions. The carrying amounts of the parent's interests and minority interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference between the amount by which the minority interests are adjusted and the fair value of the consideration paid or received is adjusted to shareholders' equity (capital reserve). If the capital reserve is not sufficient to absorb the difference, the excess are adjusted against retained earnings.
When the Group loses control over a subsidiary due to disposal of equity investment or other reason, any retained interest is re-measured at its fair value at the date when control is lost. The difference between (i) the aggregate of the consideration received on disposal and the fair value of any retained interest and (ii) the share of the former subsidiary's net assets cumulatively calculated from the acquisition date according to the original proportion of ownership interests is recognized as investment income in the period in which control is lost, and the goodwill is offset accordingly. Other comprehensive income associated with investment in the former subsidiary is reclassified to investment income in the period in which control is lost.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
7.Types of joint arrangements and the accounting treatment of joint operation
There are two types of joint arrangements - joint operations and joint ventures. The classification of joint arrangements under is determined based on the rights and obligations of parties to the joint arrangements by considering the structure, the legal form of the arrangements, the contractual terms agreed by the parties to the arrangement. A joint operation is a joint
arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.
Investments in joint ventures are accounted for using the equity method by the Group, which is detailed in Note(III) 13.3.2 A long-term equity investment accounted for using the equity method. The Group as a joint operator recognizes the following items in relation to its interest in a joint operation: (1) its solely-held assets, including its share of any assets held jointly; (2) its solely- assumed liabilities, including its share of any liabilities incurred jointly; (3) its revenue from the sale of its share of the output arising from the joint operation; (4) its share of the revenue from the sale of the output by the joint operation; and (5) its solely-incurred expenses, including its share of any expenses incurred jointly. The Group accounts for the recognised assets, liabilities, revenues and expenses relating to its interest in a joint operation in accordance with the requirements applicable to the particular assets, liabilities, revenues and expenses.
8. 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. 9. Foreign currency transactions
9.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet date are recognized in profit or loss for the period, except that (1) exchange differences related to a specific-purpose borrowing denominated in foreign currency that qualify for capitalization are capitalized as part of the cost of the qualifying asset during the capitalization period; (2) exchange differences related to hedging instruments for
the purpose of hedging against foreign currency risks are accounted for using hedge accounting;
(3) exchange differences arising from change in the carrying amounts other than the amortized
cost of available-for-sale monetary items are included in other comprehensive income.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
9. Foreign currency transactions- continued
9.1 Transactions denominated in foreign currencies - continued
Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional currency at the spot exchange rates on the dates of the transactions; 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 included in other comprehensive income.
10. 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.
10.1 Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset or a financial liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest expense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or financial liability or, where appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group estimates future cash flows considering all contractual terms of the financial asset or financial liability (without considering future credit losses), and also considers all fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that are an integral part of the effective interest rate, transaction costs, and premiums or discounts etc.
10.2 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 ("FVTPL"), held-to-maturity investments, loans and receivables, and available-for-sale financial assets. All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2 Classification, recognition and measurement of financial assets - continued
10.2.1 Financial Assets at Fair Value through Profit or Loss ("FVTPL")
Financial assets at fair value through profit or loss ("FVTPL") include financial assets held for trading and those designated as at fair value through profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (1) it has been acquired principally for the purpose of selling in the near term; or (2) on initial recognition it is part of a portfolio of identified financial instruments that the Group manages together and there is objective evidence that the Group has a recent actual pattern of short-term profit-taking; or (3) it is a derivative that is not designated and effective as a hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the following conditions is satisfied: (1) such designation eliminates or significantly reduces a measurement or recognition inconsistency that would otherwise result from measuring assets or recognizing the gains or losses on them on different bases; or (2) the financial asset forms part of a group of financial assets or a group of financial assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance with the Group's documented risk management or investment strategy, and information about the grouping is reported to key management personnel on that basis; or (3) eligible hybrid instruments that contain embedded derivatives.
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.
10.2.2 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 derecognition, impairment or amortization is recognized in profit or loss.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.2 Classification, recognition and measurement of financial assets - continued
10.2.3 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 notes receivable, accounts receivable, interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or loss arising from derecognition, impairment or amortization is recognized in profit or loss.
10.2.4 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 and included in the capital reserve, except that impairment losses and exchange differences related to amortized cost of financial assets are recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are released and recognized in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the available-for-sale financial assets are held, are recognized in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured, and derivative financial assets that are linked to and must be settled by delivery of such unquoted equity instruments are measured at cost.
10.3 Impairment of financial assets
The Group assesses at each balance sheet date the carrying amounts of financial assets other than those at fair value through profit or loss. If there is objective evidence that a financial asset is impaired, the Group determines the amount of any impairment loss. Objective evidence that a financial asset is impaired is evidence that, arising from one or more events that occurred after the initial recognition of the asset, the estimated future cash flows of the financial asset, which can be reliably measured, have been affected.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.3 Impairment of financial assets - continued
Objective evidence that a financial asset is impaired includes the following observable events: (1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
(3) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial
reorganizations;
(5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
(6) Upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in the estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the decrease cannot yet be identified with the individual financial assets in the group. Such observable data includes:
- Adverse changes in the payment status of borrower in the group of assets;
- Economic conditions in the country or region of the borrower which may lead to a failure to pay the group of assets;
(7) Significant adverse changes in the technological, market, economic or legal environment in which the issuer of equity instruments operates, indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortized cost
If financial assets carried at cost or amortized cost are impaired, the carrying amounts of the financial assets are reduced to the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the financial asset's original effective interest rate. The amount of reduction is recognized as an impairment loss in profit or loss. If, subsequent to the recognition of an impairment loss on financial assets carried at amortized cost, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is reversed. However, the reversal does not result in a carrying amount of the financial asset that exceeds what the amortized cost would have been had the impairment not been recognized at the date the impairment is reversed.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.3 Impairment of financial assets - continued
- Impairment of financial assets measured at amortized cost - continued
For a financial asset that is individually significant, the Group assesses the asset individually for impairment. For a financial asset that is not individually significant, the Group assesses the asset individually for impairment or includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset (whether significant or not), it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses 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 other comprehensive income is reclassified from the capital reserve to profit or loss. The amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment loss on that financial asset previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objective evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale equity instruments is recognized as other comprehensive income and included in the capital reserve, while the amount of reversal of impairment loss on available-for-sale debt instruments is recognized in profit or loss.
- Impairment of financial assets measured at cost
If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to and must be settled by delivery of such an unquoted equity instrument, the carrying amount of the financial asset is reduced to the present value of estimated future cash flows discounted at the current market rate of return for a similar financial asset. The amount of reduction is recognized as an impairment loss in profit or loss. The impairment loss on such financial asset is not reversed once it is recognized.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.4 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 derecognition criteria, the difference between (1) the carrying amount of the financial asset transferred; and (2) the sum of the consideration received from the transfer and any cumulative gain or loss that has been recognized in other comprehensive income, is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset is allocated between the part that continues to be recognized and the part that is derecognized, based on the respective fair values of those parts. The difference between (1) the carrying amount allocated to the part derecognized; and (2) the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized which has been previously recognized in other comprehensive income, is recognized in profit or loss
10.5 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.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.5.1 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; or (3) eligible hybrid instruments that contain embedded derivatives.
Financial liabilities at FVTPL are subsequently measured at fair value, and any gains or losses arising from changes in the fair value or any dividend or interest expense related with the financial liabilities are recognized in profit or loss.
10.5.2 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 are subsequently measured at amortized cost using the effective interest method, with gains or losses arising from derecognition or amortization recognized in profit or loss.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
10. Financial instruments - continued
10.5 Classification and recognition of financial liabilities - continued
10.5.3 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 amortization recognized in accordance with the principles set out in Accounting Standard for Business Enterprises No. 14 - Revenue.
10.6 Derecognition of Financial Liabilities
The Group derecognizes a financial liability (or part of it) 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.
10.7 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized amounts, and intends either to settle on a net basis, or to realize the financial asset and settle the financial liability simultaneously, a financial asset and a financial liability shall be offset with the net amount presented in the balance sheet. Except for the circumstances above, financial assets and financial liabilities shall be presented separately in the balance sheet and shall not be offset. 10.8 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 issuance including refinancing, repurchase, sale or cancellation of equity instrument of the Group is recognized as movement of shareholders' equity. The Group does not recognize any changes in the fair value of equity instruments. Transaction costs associated with equity transactions are deducted from shareholders' equity.
The distributions made by the Group to holders of the equity instruments are recognized as profit
distribution. Any issuance of stock dividends do not affect the shareholders' equity.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
11. Receivables
11.1 Receivables that are individually significant and for which bad debt provision is individually assessed
||||
|-|-|-|
||Basis or monetary criteria for|Top five balances of receivables are deemed as individually significantreceivables by the Group.|
||determining individually significant||
||receivables||
|Provision methods for receivables thatare individually significant and forwhich bad debt provision isindividually assessed||For receivables that are individually significant, the Group assesses thereceivables individually for impairment; for a financial asset that is notimpaired 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.|

11.2 Receivables for which bad debt provision is collectively assessed on a credit risk portfolio basis
||||
|-|-|-|
||Basis for determining a portfolio||
|Portfolio 1|Portfolio 1|The portfolio primarily includes amounts due from related parties ofthe Group, deposits and petty cash etc.|
|Portfolio 2||This portfolio excludes amounts due from related parties of the Group,deposits and petty cash etc.|
||Bad debt provision methods for a portfolio||
||Portfolio 1|Specific Identification Method|
||Portfolio 2|Aging Analysis Method|

Portfolios that use aging analysis for bad debt provision:
|||||||
|-|-|-|-|-|-|
|Aging|||Provision proportion for||Provision proportion for|
||Aging||accounts receivable (%)||other receivables (%)|
||Within 90 days (inclusive)|0||0||
||More than 91 days but not exceeding 183 days|0-3||0-3||
||More than 184 days but not exceeding year|5||5||
||More than 1 year but not exceeding 2 years|20||20||
||More than 2 years but not exceeding 3 years|50||50||
||More than 3 years|100||100||

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

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
12. Inventories
12.1 Categories of inventories
Inventories include spare parts, fuel, and low value consumables. 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. 12.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method. 12.3 Basis for determining net realizable value of inventories and provision methods for decline in value of inventories
At the balance sheet date, inventories are measured at the lower of cost and net realizable value. If the cost of inventories is higher than the net realizable value, a provision for decline in value of inventories is made. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion, the estimated costs necessary to make the sale and relevant taxes. Net realizable value is determined on the basis of clear evidence obtained, after taking into consideration the purposes of inventories being held and effect of post balance sheet events.
Provision for decline in value of other inventories is made based on the excess of cost of inventory over its net realizable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused inventories to be written down below cost no longer exist so that the net realizable value of inventories is higher than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss for the period.
12.4 Inventory count system
The perpetual inventory system is maintained for stock system.
12.5 Amortization methods for low cost and short-lived consumable items and packaging materials
Packaging materials and low cost and short-lived consumable items are amortized using the immediate write-off method.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
13. Long-term equity investments
13.1 Basis for determining joint control and significant influence over investee
Control is archived when the Group has the power over the investee and has rights to variable returns from its involvement with the investee; and has the ability to use its power to affect its returns. 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.
13.2 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. The difference between the initial investment cost and the carrying amount of cash paid, non-cash assets transferred and liabilities assumed shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to retained earnings. If the consideration of the combination is satisfied by the issue of equity securities, the initial investment cost of the long-term equity investment shall be the share of party being absorbed of the owners' equity in the consolidated financial statements of the ultimate controlling party at the date of combination. The aggregate face value of the shares issued shall be accounted for as share capital. The difference between the initial investment cost and the aggregate face value of the shares issued shall be adjusted to capital reserve. If the balance of capital reserve is not sufficient, any excess shall be adjusted to retained earnings.
For a long-term equity investment acquired through business combination not involving enterprises under common control, the investment cost of the long-term equity investment acquired is the cost of acquisition.
The absorbing party's or purchaser's intermediary expenses (fees in respect of auditing, legal services, valuation and consultancy services, etc.) and other administrative expenses attributable to the business combination are recognized in profit or loss in the periods when they are incurred. The long-term equity investment acquired otherwise than through a business combination is initially measured at its cost. When the entity is able to exercise significant influence or joint control (but not control) over an investee due to additional investment, the cost of long-term equity investments is the sum of the fair value of previously-held equity investments determined
in accordance with Accounting Standard for Business EnterprisesNo.22–Financial Instruments:
Recognition and Measurement of (CAS 22) and the additional investment cost.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
13. Long-term equity investments - continued
13.3 Subsequent measurement and recognition of profit or loss
13.3.1 A long-term equity investment accounted for using the cost method
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. Additional or withdrawing investment would affect the cost of 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.
13.3.2 A long-term equity investment accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An associate is an entity over which the Group has significant influence and a joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint arrangement.
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 other comprehensive income and net profit or loss of the investee for the period as other comprehensive income and investment income or loss respectively for the period, and the carrying amount of the long-term equity investment is adjusted accordingly. The carrying amount of the investment shall be reduced by the portion of any profit distributions or cash dividends declared by the investee that is distributed to the investing enterprise. The investing enterprise shall adjust the carrying amount of the long-term equity investment for other changes in owners' equity of the investee (other
than net profits or losses, other comprehensive income and profit distribution), and include the corresponding adjustment in capital reserve. The Group recognizes its share of the investee's net profit or loss based on the fair value of the investee's individually identifiable assets at the acquisition date after making appropriate adjustments. Where the accounting policies and accounting period adopted by the investee are different from those of the investing enterprise, the investing enterprise shall adjust the financial statements of the investee to conform to its own accounting policies and accounting period, and recognise other comprehensive income and investment income or losses based on the adjusted financial statements. Unrealized profits or losses resulting from the Group's transactions and assets invested or sold that are not recognized as business 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.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
13. Long-term equity investments - continued
13.3 Subsequent measurement and recognition of profit or loss - continued
13.3.2 A long-term equity investment accounted for using the equity method - continued The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the long-term equity investment together with any long-term interests that in substance form part of its net investment in the investee are reduced to zero. Except that if the Group has incurred obligations to assume additional losses, a provision is recognized according to the obligation expected, and recorded in the investment loss for the period. Where net profits are subsequently made by the investee, the Group resumes recognizing its share of those profits only after its share of the profits exceeds the share of losses previously not recognized.
13.4 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 long-term equity investments accounted for using the equity method, if the remaining interest after disposal is still accounted for using the equity method, other comprehensive income previously recognised for using the equity method is accounted for on the same basis as would have been required if the investee had directly disposed of related assets or liabilities, and transferred to profit or loss for the period on a pro rata basis; owners' equity recognised due to changes in other owners' equity of the investee (other than net profit or loss, other comprehensive income and profit distribution) is transferred to profit or loss for the period on a pro rata basis. For long-term equity investments accounted for using the cost method, if the remaining interest after disposal is still accounted for using the cost method, other comprehensive income previously recognised for using the equity method or in accordance with the standards for the recognition and measurement of financial instruments before obtaining the control over the investee, is accounted for on the same basis as would have been required if the investee had directly disposed of related assets or liabilities, and transferred to profit or loss for the period on a pro rata basis; changes in other owners' equity in the investee's net assets recognised under the equity method (other than net profit or loss, other comprehensive income and profit distribution) is transferred to profit or loss for the period on a pro rata basis.
14. Investment properties
Investment property is property held to earn rentals or for capital appreciation or both. It includes a land use right that is leased out; a land use right held for transfer upon capital appreciation; and a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such investment property are included in the cost of the investment property if it is probable that economic benefits associated with an investment property will flow to the Group and the subsequent expenditures can be measured reliably, other subsequent expenditures are recognized
in profit or loss in the period in which they are incurred.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
14. Investment properties - continued
The Group uses the cost model for subsequent measurement of investment property, and adopts a depreciation or amortization policy for the investment property which is consistent with that for buildings or land use rights.
When an investment property is sold, transferred, retired or damaged, the Group recognizes the amount of any proceeds on disposal net of the carrying amount and related taxes in profit or loss for the period.
15. Fixed assets
15.1 Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes, and have useful lives of more than one accounting year. A fixed asset is recognized only when it is probable that economic benefits associated with the asset will flow to the Group and the cost of the asset can be measured reliably. Fixed assets are initially measured at cost. Upon being restructured into a stock company, the fixed assets initially contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department.
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.
15.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method starting from the month subsequent to the one in which it is ready for intended use. The useful life, estimated net residual value rate and annual depreciation rate of each category of fixed assets are as follows:
|||||||||
|-|-|-|-|-|-|-|-|
|Category|||Estimated||Estimated||Annual|
||Category||useful lives||residual value||depreciation rate|
||Port and terminal facilities|5 - 50 years||10%||1.8%-18%||
||Container yards and buildings|5 - 40 years||10%||2.25%-18%||
||Mechanical equipment|5 - 15 years||10%||6%-18%||
||Motor vehicles, cargo ships and tugboats|5 - 20 years||10%||4.5%-18%||
|Other equipment||5 years||10%||18%||

Estimated net residual value of a fixed asset is the estimated amount that the Group would
currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the
asset were already of the age and in the condition expected at the end of its useful life.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
15. Fixed assets - continued
15.3 Other explanations
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from its use or disposal, the fixed asset is derecognized. When a fixed asset is sold, transferred, retired or damaged, the amount of any proceeds on disposal of the asset net of the carrying amount and related taxes is recognized in profit or loss for the period.
The Group reviews the useful life and estimated net residual value of a fixed asset and the depreciation method applied at least once at each financial year-end, and account for any change as a change in an accounting estimate.
16. Construction in progress
Construction in progress is measured at its actual costs. The actual costs include various construction expenditures during the construction period, borrowing costs capitalized before it is ready for intended use and other relevant costs. Construction in progress is not depreciated. Construction in progress is transferred to a fixed asset when it is ready for intended use. 17. Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are capitalized when expenditures for such asset and borrowing costs are incurred and activities relating to the acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs ceases when the qualifying asset being acquired, constructed or produced becomes ready for its intended use or sale. Capitalization of borrowing costs is suspended during periods in which the acquisition, construction or production of a qualifying asset is interrupted abnormally and when the interruption is for a continuous period of more than 3 months. Capitalization is suspended until the acquisition, construction or production of the asset is resumed. Other borrowing costs are recognized as an expense in the period in which they are incurred.
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.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
17. Borrowing Costs - continued
During the capitalization period, exchange differences related to a specific-purpose borrowing denominated in foreign currency are all capitalized. Exchange differences in connection with general-purpose borrowings are recognized in profit or loss in the period in which they are incurred.
18. Intangible assets
Intangible assets include land use rights, sea area use rights and computer software.
An intangible asset is measured initially at cost. Upon being restructured into a stock company, the intangible assets initial contributed by the state-owned shareholders are recognized based on the valuation amounts confirmed by the state-owned assets administration department. When an intangible asset with a finite useful life is available for use, its original cost is amortized over its estimated useful life.
||||||
|-|-|-|-|-|
|Category|Amortization method|Estimated useful lives(year)||Residual|
|||||value (%)|
|Land use rights|Straight-line method|20-50|-||
|Computer software|Straight-line method|5|-||
|Sea area use rights|Straight-line method|5-50|-||
|Coastal line use rights|Straight-line method|41.9-44.3|-||

 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.
19. Impairment of long-term assets
The Group assesses at the balance sheet date whether there is any indication that the long-term equity investments, investment properties measured at cost method, construction in progress, fixed assets 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.
Recoverable amount is estimated on individual basis. If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset group to which the asset belongs will be estimated. 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.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
19. Impairment of long-term assets - continued
Goodwill is tested for impairment at least at the end of each year. For the purpose of impairment testing, goodwill is considered together with the related assets groups, i.e., goodwill is reasonably allocated to the related assets groups or each of assets groups expected to benefit from the synergies of the combination. In testing an assets group with goodwill for impairment, an impairment loss is recognized if the recoverable amount of the assets group or sets of assets groups (including goodwill) is less than its carrying amount. The impairment loss is firstly allocated to reduce the carrying amount of any goodwill allocated to such assets group or sets of assets groups, and then to the other assets of the group pro-rata basis on the basis of the carrying amount of each asset (other than goodwill) in the group.
Once the impairment loss of above-mentioned asset is recognized, it shall not be reversed in any subsequent period.
20. Long-term prepaid expenses
Long-term prepaid expenses represent expenses incurred that should be borne and amortized over the current and subsequent periods (together of more than one year). Long-term prepaid expenses are amortized using the straight-line method over the expected periods in which benefits are derived.
21. Employee benefits
21.1 The accounting treatment of short-term employee benefits
Actually occurred short-term employee benefits are recognised 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 recognised 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 recognised 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.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
21、Employee benefits - continued
21.2 The accounting treatment of post-employment benefits
All the post-employment benefits are defined contribution plans.
The contribution payable to the defined contribution plan is recognised 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.
21.3 The accounting treatment of termination benefits
When the Group provides termination benefits to employees, employee benefit liabilities are recognised 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.
22. Provisions
Provisions are recognised when the Group has a present obligation related with contingencies, it is probable that the Group will be required to settle that obligation causing an outflow of economic benefits, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at balance sheet date, taking into account the risks, uncertainties and time value of money surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows where the effect of the time value of money is material.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable should not exceed the carrying amount of provisions.
23. Revenue
23.1 Revenue from rendering of services
The Group provides load and unload services, tugboat and trailer services, logistics agency and other related harbor services to customers. Revenue from rendering of services is recognized when (1) the amount of revenue can be measured reliably; (2) it is probable that the associated
economic benefits will flow to the enterprise; and (3) the associated costs incurred or to be
incurred can be measured reliably.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
23. Revenue - continued
23.2 Rental income - continued
The operating lease income of investment property should be recognized in the lease term at the price stated in contract or agreements using the straight-line method.
23.3 Interest income
Interest income is calculated based on the length of time for which the Group's cash is used by others and the applicable interest rate.
24. Government grants
Government grants are transfer of monetary assets or non-monetary assets from the government to the Group at no consideration. A government grant measured at a nominal amount is recognized immediately in profit or loss for the period.
A government grant is recognized only when the Group can comply with the conditions attached to the grant and the Group will receive the grant. If a government grant is in the form of a transfer of a monetary asset, it is measured at the amount received or receivable.
24.1 The accounting treatment of government grants related to assets
A government grant, such as special funds for modern logistics project and special funds for energy-saving and emission reduction of transportation, related to an asset is recognized as deferred income, and evenly amortized to profit or loss over the useful life of the related asset. 24.2 The accounting treatment of government grants related to income
A government grant relating to income, if used to compensate the related expenses or losses to be incurred in subsequent periods, such as financial support funds of business tax converted to VAT and reward for energy saving, is determined as deferred income and recognised in profit or loss over the periods in which the related costs are recognized; if used to compensate the related expenses or losses already incurred, is recognised immediately in profit or loss for the period. 25. Deferred tax assets/ deferred tax liabilities
The income tax expenses include current income tax and deferred income tax.
25.1 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.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Deferred tax assets/ deferred tax liabilities - continued
25.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or between the nil carrying amount of those items that are not recognized as assets or liabilities and their tax base that can be determined according to tax laws, deferred tax assets and liabilities are recognized using the balance sheet liability method.
Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets for deductible temporary differences are recognized to the extent that it is probable that taxable profits will be available against which the deductible temporary differences can be utilized. However, for temporary differences associated with the initial recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of transaction, no deferred tax asset or liability is recognized.
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognized to the extent that it is probable that future taxable profits will be available against which the deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future. At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates applicable in the period in which the asset is realized or the liability is settled according to tax laws.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except when they arise from transactions or events that are directly recognized in other comprehensive income or in equity, in which case they are recognized in other comprehensive income or in equity, and when they arise from business combinations, in which case they adjust the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it is no longer probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to be utilized. Any such reduction in amount is reversed when it becomes probable that sufficient taxable profits will be available.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
25. Deferred tax assets/ deferred tax liabilities - continued
25.3 Offset of income tax
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.
26. Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases. 26.1 The accounting treatment of operating leases
26.1.1 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.
26.1.2 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 in profit or loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the period in which they actually arise.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
27. Safety Production Cost
According to the Administrative Rules on Provision and Use of Enterprise Safety Production Cost jointly issued by the Ministry of Finance and the State Administration of Work Safety on 14 February 2012 (filed as Cai Qi[2012] No. 16), safety production cost set aside by the Group is directly included in the cost of relevant products or recognized in profit or loss for the period, as well as the special reserve. When safety production cost set aside is utilized, if the costs incurred can be categorized as expenditure, the costs incurred should be charged against the special reserve. If the costs set aside are used to build up fixed assets, the costs should be charged to construction in progress, and reclassified to fixed assets when the safety projects are ready for intended use. Meantime, expenditures in building up fixed assets are directly charged against the special reserve with the accumulated depreciation recognized at the same amount. Depreciation will not be made in the future period on such fixed assets.
28. Critical judgments in applying accounting policies and key assumptions and
uncertainties in accounting estimates
In the application of accounting policies as set out in Note (III), the Company is required to make judgments, estimates and assumptions about the carrying amounts of items in the financial statements that cannot be measured accurately, due to the internal uncertainty of the operating activities. These judgments, estimates and assumptions are based on historical experiences of the Company's management as well as other factors that are considered to be relevant. Actual results may differ from these estimates.
The Company regularly reviews the judgments, estimates and assumptions on a going concern basis. Changes in accounting estimates which only affect the current period should be recognized in current period; changes which not only affect the current but the future periods should be recognized in current and future periods. At the balance sheet date, key assumptions and uncertainties that are likely to lead to significant adjustments to the book values of assets and liabilities in the future are:
Goodwill impairment
For the purpose of impairment testing, the present value of the expected future cash flows of the assets group or portfolio including goodwill shall be calculated, and such expected future cash flows shall be estimated. Meantime, a pre-tax rate shall be determined that should reflect the time value of money on the current market and the specific asset risks.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(III) THE COMPANY'S SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES - continued
28. Critical judgments in applying accounting policies and key assumptions and
uncertainties in accounting estimates - continued
Recognition of deferred tax
The Group calculates and makes provision for deferred income tax liabilities according to the profit distribution plan of subsidiaries, associates and the joint ventures subject to the related law. For retained earnings which are not allocated by the investment company, since the profits will be used to invest the company's daily operation and future development, no deferred income tax liabilities are recognized. If the actually distributed profits in the future are more or less than those expected, corresponding deferred tax liabilities will be recognized or reversed at the earlier of profits distribution date and the declaration date, in the profit and loss of the current period. Deferred tax assets are recognized based on the deductible temporary difference and the corresponding tax rate, to the extent that it has become probable that future taxable profit will be available for the deductible temporary difference. If in the future the actual taxable income does not coincide with the amount currently expected, the deferred tax assets resulting will be recognized or reversed in the period when actually incurred, in profit or loss.
(IV) TAXES
1. Major taxes and tax rates
||||
|-|-|-|
|Taxes|Tax basis|Tax rate|
|Enterprise income tax|Taxable income|25%|
||Load and unload income, tugboat income, trailer income,warehousing income and agency income|6%|
||Taxable income from vehicle maintenance and utilities supplieson ships in shore|13% and17%|
|Value-add Tax|||
||Taxable income from sales of scraps and rental income fromtangible property|3%|
||Taxable income from leases of immovable property and labordispatching|5% and 6%(Note 2)|
|Urban maintenance and|VAT|5% and 7 %(Note 1)|
|construction tax|||
|Education surcharges|VAT|3%|
|Regional education surcharges|VAT|2%|

 Entities using different enterprise income tax rate:
||||
|-|-|-|
||Name of entity|Enterprise income tax rate|
|Chiwan Wharf Holdings (HK) Limited||16.50%|
|Chiwan Shipping (HK) Company Limited||16.50%|
|Xuanyun Development Company Limited||16.50%|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(IV) TAXES - continued
1. Major taxes and tax rates - continued
Note 1: The subsidiaries set up in Shenzhen are subject to an city maintenance and construction tax rate of7%, and those set up in Dongguan are subject to an city maintenance and construction tax rate of5%.
Note 2: Pursuant to the Notice of the Ministry of Finance and the State Administration of Taxation ("SAT")on Full Launch of the Pilot Scheme on Levying Value-added Tax in Place of Business Tax (filed as Cai Shui[2016] No. 36), a full implementation of replacing business tax with VAT has been launched. Therefore, the Group is subject to VAT at5% and6% respectively for rental income from immovable property and income from labor dispatching since 1 May 2016.
Pursuant to the Interim Measures on Management of VAT Collection on Immovable Property Leases Provided by Taxpayers released by SAT(filed as the notice of SAT 2016 No.16), the Group, are entitled to VAT tax rate at5% based on simple tax method for immovable property leasing since 1 May 2016.
2. Tax preference
On 8 July 2014, Machong Branch of National Taxation Bureau in Dongguan City approved that Dongguan Chiwan Terminal Co., Ltd ("DGT"), a subsidiary of the Group, was subject to tax preference of "3-year exemption followed by 3-year half reduction" commencing from 2014. DGT is exempted from income tax in 2016 (2016: exempted from enterprise income tax). According to Doc.[2013] No.3 issued by Shekou Local Taxation Bureau In Shenzhen, the profits derived from berth13A# of Shenzhen Chiwan Harbour Container Co., Ltd ("CHCC"), was subject to tax preference of "3-year exemption followed by 3-year half reduction" commencing from 2012. 2016 is the fifth profit-making year of berth13A#, hence, the tax rate of12.5% was adopted to calculate its enterprise income tax. (2016:12.5%).
According to the joint verification by Science and Technology Innovation Commission of Shenzhen Municipality, Finance Commission of Shenzhen Municipality, Shenzhen Provincial Office, SAT and Shenzhen Local Taxation Bureau, Chiwan Container Terminal Co., Ltd ("CCT"), a subsidiary of the Group, is a high-tech enterprise, and was subject to tax preference of 3-year enterprise income tax rate of15% commencing from 2014. The high-tech certificate of Chiwan Container Terminal Co., Ltd., a subsidiary of the Company, expired at the end of 2016 and the subsidiary was going through a review for that certificate in the first half of 2017. Therefore, out of the principle of prudence, the income tax rate for the subsidiary was reported at25% for this year.
According to the Notice on Taxable Services Subject to "VAT" Tax Rate of Zero and Exemption issued by the Ministry of Finance and State Administration of Taxation (filed as Cai Shui[2011] No.131), and approvals released by Shekou National Taxation Bureau in Shenzhen (filed as Shen Guo Shui She Jian Mian Bei[2015] No.0419,[2015] No.0575 and[2015] No.0755 respectively),
CCT, CHCC and Shenzhen Chiwan International Freight Agency Co., Ltd, the subsidiaries of the
Group, are exempted from VAT when providing logistics support service to overseas enterprises
except for warehousing service.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1. Cash and bank balances
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Cash:|||
|RMB|1,282.79|20,664.46|
|USD|480.98|492.53|
|HKD|7,555.68|7,786.85|
|Subtotal|9,319.45|28,943.84|
|Bank deposit:|||
|RMB|316,148,677.71|225,166,179.45|
|USD|243,709,449.24|175,236,570.78|
|HKD|19,714,770.66|25,531,313.32|
|Subtotal|579,572,897.61|425,934,063.55|
|Other cash and bank balances (Note)|||
|RMB|13,960,284.35|73,695.48|
|USD|-|-|
|HKD|-|-|
|Subtotal|13,960,284.35|73,695.48|
|Total|593,542,501.41|426,036,702.87|
|Including: The total amount of funds deposited in overseas|6,573,964.58|11,778,425.97|

 Note: The balance of other cash and bank balances is mainly the amount deposited in the securities settlement account of China Merchants Securities Co., Ltd and bank guarantee deposit of DGT.
2. Notes receivable
Unit: RMB
||||||
|-|-|-|-|-|
||Category||Closing balance|Opening balance|
|Bank acceptance bills||-||500,000.00|

 Note: No notes receivable pledged, endorsed or discounted at the year end.
3. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: RMB
|||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Item|||Closing balance||||||||Opening balance|||||||
||||Carrying amount||||Bad debt provision|||Book value|Carrying amount|||Bad debt provision|||Book value|
|||Amount|||Proporti|Amount|||Proporti||Amount||Proportio|Amount||Proporti||
||Item||||on (%)||||on (%)||||n (%)|Amount||on (%)||
|A|ccounts receivable that are individually|-||-||-||-||-|-|-||-|-||-|
||significant and for which bad debt provision has|||||||||||||||||
||been assessed individually|||||||||||||||||
|A|ccounts receivable for which bad debt provision has been assessed by credit risk portfolios|||||||||||||||||
|P|ortfolio 1|8,629,958.62||3.50||-||-||8,629,958.62|4,527,585.51|2.54||-|-||4,527,585.51|
|P|ortfolio 2|235,090,646.20||95.38||216,600.91||0.09||234,874,045.29|169,922,044.73|95.41||515,133.61|0.30||169,406,911.12|
|S|ubtotal of portfolios|243,720,604.82||98.88||216,600.91||0.09||243,504,003.91|174,449,630.24|97.95||515,133.61|0.30||173,934,496.63|
|A|ccounts receivable that are not individually|2,768,544.64||1.12||2,768,544.64||100.00||-|3,647,046.03|2.05||3,647,046.03|100.00||-|
||significant but for which bad debt provision has|||||||||||||||||
||been assessed individually|||||||||||||||||
|T|otal|246,489,149.46||100.00||2,985,145.55||1.21||243,504,003.91|178,096,676.27|100.00||4,162,179.64|2.34||173,934,496.63|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 3. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued
Accounts receivable portfolios for which bad debt provision has been assessed using the aging analysis approach:
Unit: RMB
|||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging||Closing balance|||||||Opening balance|||||||
||||Closing balance|||||||||||||
||||Carrying||Bad debt||Proportion|Book value||Carryingamount||Bad debt||Proportion|Book value|
||Aging||amount||provision||(%)|||||provision||(%)||
||Within 1 year|234,715,478.17||125,525.47||0.05||234,589,952.70|169,810,253.50||477,141.52||0.28||169,333,111.98|
||More than 1 year but not|354,390.73||70,878.14||20.00||283,512.59|91,873.93||18,374.79||20.00||73,499.14|
||exceeding 2 years|||||||||||||||
||More than 2 years but not|1,160.00||580.00||50.00||580.00|600.00||300.00||50.00||300.00|
||exceeding 3 years|||||||||||||||
||More than 3 years|19,617.30||19,617.30||100.00||-|19,317.30||19,317.30||100.00||-|
|T|otal|235,090,646.20||216,600.91||0.09||234,874,045.29|169,922,044.73||515,133.61||0.30||169,406,911.12|

 (2) Bad debt provision, reversal and written-off
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||bad debt|Decrease|||
|Item|Opening balance|provision|Reversal|Write-off|Closing balance|
|Accounts receivable|4,162,179.64|456,427.17|1,633,461.26|-|2,985,145.55|

 (3) There are no accounts receivables that have been written off during the year.
(4) Top five balances of accounts receivable classified by debtor:
Unit: RMB
||||||
|-|-|-|-|-|
||||Proportion of the||
||||amount to the||
||Relationship with||total accounts||
|Name of customer|the Company|Amount|receivable (%)|Bad debt provision|
|Customer A|Customer|54,209,574.08|21.99|1,443.60|
|Customer B|Customer|33,974,868.00|13.78|-|
|Customer C|Customer|14,546,864.86|5.90|-|
|Customer D|Customer|9,432,338.45|3.83|-|
|Customer E|Customer|7,905,330.53|3.21|-|
|Total||120,068,975.92|48.71|1,443.60|

 4. Prepayments
(1) Prepayments presented by aging
Unit: RMB
||||||
|-|-|-|-|-|
||Closing balance||Opening balance||
|Aging|Amount|Proportion (%)|Amount|Proportion (%)|
|Within 1 year|1,804,143.70|100.00|2,464,758.53|93.37|
|More than 1 year|-|-|-|-|
|but not exceeding 2 years|||||
|More than 2 years but not|-|-|175,000.00|6.63|
|exceeding 3 years|||||
|Total|1,804,143.70|100.00|2,639,758.53|100.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 4. Prepayments - continued
(2) Top five balances of prepayments classified by entities
Unit: RMB
|||||
|-|-|-|-|
||||Proportion of the|
||||closing balance to|
||Relationship with|||
|||Closing|the total|
|Entities|the Company|balance|prepayments (%)|
|The People's Property Insurance Company (Group) of|Supplier|680,511.80|37.72|
|China Limited, Shenzhen Branch||||
|China Life Insurance Co., Ltd Shenzhen Branch|Supplier|555,913.81|30.82|
|Kingdee software (China) Co., Ltd.|Supplier|252,391.51|13.99|
|CMBL|Supplier|150,000.00|8.31|
|Shaoguan Hydraulic Parts Factory Co Ltd|Supplier|50,960.00|2.82|
|Total||1,689,777.12|93.66|

 (3) The Group has no significant aging over one year prepayment.
5. Interest receivable
(1) Interest receivable
Unit: RMB
|||||
|-|-|-|-|
|Category|Closing balance||Opening balance|
|Fixed term deposit|1,264,914.26|-||

 (2) The Group has no significant overdue interest.
6. Dividends receivable
(1) Dividends receivable
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Openingbalance|Increase|Decrease|Closingbalance||Impairmentappeared ornot|
||Item|||||||
||China Overseas Harbor Affairs|-|54,159,674.42|54,159,674.42|-|No||
||(Laizhou) Co., Ltd.|||||||
||China Ocean Shipping Agency|-|8,997,000.00|8,997,000.00|-|No||
||(Shenzhen) Company Limited|||||||
||Jiang Su Ninghu Expressway|-|420,000.00|-|420,000.00|No||
||Company Limited|||||||
|MEDIA PORT INVESTMENTSLIMITED||-|30,167,872.32|30,167,872.32|-|No||
||Total|-|93,744,546.74|93,324,546.74|-|||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 7. Other receivables
(1) Disclosure of other receivables by categories:
Unit: RMB
||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Category||Closing balance|||||||||Opening balance||||||||
|||Carrying amount||||Bad debt provision||||Book value|Carrying amount|||Bad debt provision||||Book value|
||||Carrying amount||||Bad debt provision|||||Carrying amount|||Bad debt provision||||
|||Amount|||Proportion|Amount||P|roportion||Amount||Proportion(%)|Amount|||Proporti||
||Category||||(%)||||(%)||||||||on (%)||
||Other receivables that are individually|-||-||-||-||-|-||-|-||-||-|
||significant and for which bad debt||||||||||||||||||
||provision has been assessed individually||||||||||||||||||
||Other receivables for which bad debt provision has been assessed by credit risk portfolios||||||||||||||||||
|Portfolio 1|Portfolio 1|11,290,093.48||58.61||100,000.00||0.89||11,190,093.48|9,736,887.93||34.85|100,000.00||1.03||9,636,887.93|
|Portfolio 2||7,972,493.98||41.39||463,424.48||5.81||7,509,069.50|18,205,610.78||65.15|1,194,629.70||6.56||17,010,981.08|
|Subtotal of portfolios||19,262,587.46||100.00||563,424.48||2.92||18,699,162.98|27,942,498.71||100.00|1,294,629.70||4.63||26,647,869.01|
||Other receivables that are not individually|-||-||-||-||-|-||-|-||-||-|
||significant but for which bad debt provision||||||||||||||||||
||has been assessed individually||||||||||||||||||
|Total|Total|19,262,587.46||100.00||563,424.48||2.92||18,699,162.98|27,942,498.71||100.00|1,294,629.70||4.63||26,647,869.01|

 Other receivables portfolios for which bad debt provision has been assessed using the aging analysis
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging||Closing balance|||||||Opening balance||||||
||||Closing balance||||||Opening balance||||||
||||Carrying||Bad debt||Proportion(%)|Book value|Carrying|Bad debtprovision|P|roporti|o|Book value|
||||amount||provision||||amount|||n (%)|||
|Within 1 year||7,509,069.50||-||-||7,509,069.50|17,704,281.50|723,624.26|4.09|||16,980,657.24|
|M|ore than 1 year|-||-||-||-|37,904.80|7,580.96|20.00|||30,323.84|
||but not exceeding 2 years||||||||||||||
|M|ore than 2 years|-||-||-||-|-|-|-|||-|
||but not exceeding 3 years||||||||||||||
|More than 3 years||463,424.48||463,424.48||100.00||-|463,424.48|463,424.48|100.00|||-|
|Total||7,972,493.98||463,424.48||5.81||7,509,069.50|18,205,610.78|1,194,629.70|6.56|||17,010,981.08|

 (2) Increase, reverse and write-off of bad debt provision
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|||Increase|Decrease||Translate||
||||||foreign currency||
|Item|||Reversal|Write-off|||
||Opening balance||||statements|Closing balance|
|Other receivable|1,294,629.70|-|731,205.22|-|-|563,424.48|

 (3) Other receivable has not been written off during the year.
(4) Disclosure of other receivables by nature
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Temporary payments|6,704,948.86|7,216,846.26|
|Deposits|4,927,605.99|4,021,619.49|
|Others|7,630,032.61|16,704,032.96|
|Total|19,262,587.46|27,942,498.71|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 7. Other receivables - continued
(5) Top five balances of other receivables classified by creditors
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of theamount to the totalaccounts receivable||
|Name of company|Nature of the fund|Amount|Aging|(%)|Bad debt provision|
||Temporary paymentsfrom related parties|2,822,760.39|More than 2 year butnot exceeding 3 yearsand more than 3years|14.65|-|
|Nanshan Group||||||
|Finance Department of|Deposits and guarantee|1,600,000.00|more than 3 years|5.73|-|
|Ministry of Transport||||||
||Temporary paymentsfrom related parties|970,762.13|Within one year|5.04|-|
|MSC||||||
||Temporary paymentsfrom related parties|2,180,743.58|Within one year|11.32|-|
|CMBL||||||
|Shenzhen Nanhai Grain|Land rents|1,066,345.02|Within one year|5.54|-|
|Industrial Co., Ltd.||||||
|Total||8,640,611.12||44.86|-|

 8. Inventories
(1) Categories of inventories
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||30 Jun. 2017|||31 Dec. 2016|||
|||Provision for|||Provision for|f|
|||decline in value of|||decline in value o||
|Item|Carrying amount|inventories|Book value|Carrying amount|inventories|Book value|
|Spare parts|18,075,502.40|972,744.93|17,102,757.47|15,138,488.70|972,744.9|3 14,165,743.77|
|Fuel|662,550.11|-|662,550.11|605,666.32|-|605,666.32|
|Low priced and easily|161,196.58|-|161,196.58|-|-|-|
|worn articles|||||||
|Total|18,899,249.09|972,744.93|17,926,504.16|15,744,155.02|972,744.9|3 14,771,410.09|

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

9、Other current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Added-value tax to be certified and deducted|19,698,853.34|16,832,212.36|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 10. Available-for-sale financial assets
(1) Available-for-sale financial assets
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|Item||Closing balance|||||Opening balance|||||
||||Closing balance|||||||||
||||Carrying||Provision for|Book value||Carrying||Provision for|Book value|
||Item||amount||impairment|||amount||impairment||
||Available-for-sale|26,837,500.00||3,128,300.00||23,709,200.00|25,587,500.00||3,128,300.00||22,459,200.00|
||equity instruments|||||||||||
|Measured at fair value|Measured at fair value|9,800,000.00||-||9,800,000.00|8,550,000.00||-||8,550,000.00|
|Measured at cost||17,037,500.00||3,128,300.00||13,909,200.00|17,037,500.00||3,128,300.00||13,909,200.00|
|Total||26,837,500.00||3,128,300.00||23,709,200.00|25,587,500.00||3,128,300.00||22,459,200.00|

 (2) Available-for-sale financial assets measured at fair value at the end of the year
Unit: RMB
||||
|-|-|-|
|Classification of available-for-sale financial assets||Available-for-sale equity instruments|
||Classification of available-for-sale financial assets||
||Cost of equity instruments|1,120,000.00|
||Fair value|9,800,000.00|
||Accumulated amount of changes in fair value included in the other|8,680,000.00|
||comprehensive income||
||Provision amount for impairment|-|

 Note: The available-for-sale financial assets held by the Company represent the circulating shares of Jiang Su Ninghu Expressway Company Ltd at the end of the year.
(3) Available-for-sale financial assets measured at cost at the end of the year
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investees|||Carrying amount|||||Provision for impairment|||||Proportion of|Cashdividendsfor theperiod|
|||Openingbalance||Increase|Decrease|Closingbalance|Openingbalance||Increase|Decrease|Closingbalance||ownership||
||||||||||||||interests in||
||||||||||||||the investee||
||Investees||||||||||||(%)||
|S|henzhen Petro-chemical|3,500,000.00||-|-|3,500,000.00|3,117,800.00||-|-|3,117,800.00|0.26||-|
||Industry (Group) Company Limited||||||||||||||
|G|uangdong Guang Jian|27,500.00||-|-|27,500.00|10,500.00||-|-|10,500.00|0.02||-|
||Group Company Limited||||||||||||||
|C|hina Ocean Shipping|13,510,000.00||-|-|13,510,000.00|-||-|-|-|15.00||8,997,000.00|
||Agency (Shenzhen)||||||||||||||
||Company Limited||||||||||||||
|Total||17,037,500.00||-|-|17,037,500.00|3,128,300.00||-|-|3,128,300.00|||8,997,000.00|

 Note: The available-for-sale financial assets measured at cost are equity investments of Shenzhen Petro-chemical Industry (Group) Company Limited, Guangdong Guang Jian Group Company Limited and China Ocean Shipping Agency (Shenzhen) Company Limited. None of the stocks of above-mentioned companies are traded in market or fair value could be measured reliably, hence, the Group measures these equity investments under cost method. (4) Movements of available-for-sale financial assets in the reporting period
Unit: RMB
||||
|-|-|-|
|Category||Available-for-sale equity instruments|
|Provision amount for impairment at the beginning of the year|3,128,300.00||
|Increase in the current year|-||
|Decrease in the current year|-||
|Provision amount for impairment at the end of the year|3,128,300.00||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued
11. Long-term equity investments
Unit: RMB
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee||Accountingmethod|Investment cost|Opening balance|Changes|||||||||||||Closing balance|Closing value ofprovision forimpairment|
||||||Increase|Decrease||Investment profit|y||Reconciling items fro|m|Other equitymovements||Cash dividends or|Provision forimpairment|Others|||
|||||||||or loss under equit|||other comprehensive||||profits announced of|||||
||Investee|||||||method|||income||||issuance|||||
||I. Joint ventures|||||||||||||||||||
||China Overseas Harbor Affairs (Laizhou) Co., Ltd.(Note 1)|Equity method|749,655,300.00|794,981,306.22|-|-|29,155,806.47|||-|||-|54,159,674.42||-|-|769,977,438.27|-|
||II. Associates|||||||||||||||||||
||China Merchants Holdings (International) Information Technology|Equity method|1,875,000.00|14,595,240.92|-|-|2,267,364.00|||-|||-|-||-|-|16,862,604.92|-|
||Company Ltd.|||||||||||||||||||
||CMBL|Equity method|280,000,000.00|339,931,866.76|-|-|5,476,000.01|||-|||-|-||-|-|345,407,866.77|-|
||MediaPortInvestmentsLimited("MPIL") (Note 2)|Equity method|139,932.00|340,919,242.63|-|-|23,193,786.97|||-|||-|32,658,612.69||-|-|331,454,416.91|-|
||Subtotal||282,014,932.00|695,446,350.31|-|-|30,937,150.98|||-|||-|32,658,612.69||-|-|693,724,888.60|-|
||Total||1,031,670,232.00|1,490,427,656.53|-|-|60,092,957.45|||-|||-|86,818,287.11||-|-|1,463,702,326.87|-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 12. Investment properties
(1) Investment properties measured under cost method
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|||Opening|Increase|Decrease||Closing|
||||carrying||||carrying|
||Item||amount||||amount|
||I. Total original carrying amount|43,579,258.14||-|-|43,579,258.14||
||1. Buildings|14,947,127.30||-|-|14,947,127.30||
||2. Land use right|28,632,130.84||-|-|28,632,130.84||
||II. Total accumulated depreciation|19,932,344.37||412,916.04|-|20,345,260.41||
||and amortization|||||||
||1. Buildings|5,463,497.40||156,179.82|-|5,619,677.22||
||2. Land use right|14,468,846.97||256,736.22|-|14,725,583.19||
||III. Total net book value of investment|23,646,913.77||-|-|23,233,997.73||
||property|||||||
||1. Buildings|9,483,629.90||-|-|9,327,450.08||
||2. Land use right|14,163,283.87||-|-|13,906,547.65||
||IV. Total accumulated amount of|-||-|-|-||
||provision for impairment losses of|||||||
||investment property|||||||
||1. Buildings|-||-|-|-||
||2. Land use right|-||-|-|-||
||V. Total carrying value of|23,646,913.77||-|-|23,233,997.73||
||investment property|||||||
||1. Buildings|9,483,629.90||-|-|9,327,450.08||
||2. Land use right|14,163,283.87||-|-|13,906,547.65||

 Note: Depreciation and amortization for the current period is RMB412,916.04.
(2) Investment properties without ownership certificates
As of 30 Jun. 2017, the Group has not obtained any ownership certificates of investment properties. For buildings located within the scope of Chiwan watershed with net book value of RMB20,080,637.54 (original carrying amount: RMB40,030,725.05), the underlying reasons and management's resolutions for obtaining certificates of title are set out in Note (V) 15, and the rest certificates of title are under the process of application.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 13. Fixed assets
(1) Fixed assets
Unit: RMB
||||||
|-|-|-|-|-|
||Opening carrying|||Closing carrying|
|Item|amount|Increase|Decrease|amount|
|I. Total original carrying amount|5,505,843,686.69|50,057,165.28|29,432,067.51|5,526,468,784.46|
|Including: Port and terminal facilities|1,991,871,480.44|21,041,986.99|-|2,012,913,467.43|
|Container yards and buildings|1,063,057,243.72|-|-|1,063,057,243.72|
|Mechanical equipment|2,059,095,193.73|18,560,645.16|18,016,696.05|2,059,639,142.84|
|Motor vehicles, cargo ships|276,010,110.61|10,138,675.04|11,407,030.37|274,741,755.28|
|and tugboats|||||
|Other equipment|115,809,658.19|315,858.09|8,341.09|116,117,175.19|
|II. Total accumulated depreciation|2,411,610,375.19|93,366,465.87|26,484,411.97|2,478,492,429.09|
|Including: Port and terminal facilities|477,002,365.71|20,813,743.88|-|497,816,109.59|
|Container yards and buildings|283,028,128.52|12,356,696.03|-|295,384,824.55|
|Mechanical equipment|1,409,426,856.11|50,759,507.35|16,215,026.43|1,443,971,337.03|
|Motor vehicles, cargo ships|156,226,016.48|6,508,846.79|10,266,327.34|152,468,535.93|
|and tugboats|||||
|Other equipment|85,927,008.37|2,927,671.82|3,058.20|88,851,621.99|
|III. Total net book value of fixed assets|3,094,233,311.50|-|-|3,047,976,355.37|
|Including: Port and terminal facilities|1,514,869,114.73|-|-|1,515,097,357.84|
|Container yards and buildings|780,029,115.20|-|-|767,672,419.17|
|Mechanical equipment|649,668,337.62|-|-|615,667,805.81|
|Motor vehicles, cargo ships|119,784,094.13|-|-|122,273,219.35|
|and tugboats|||||
|Other equipment|29,882,649.82|-|-|27,265,553.20|
|IV. Total provision for impairment losses|57,419,468.96|-|-|57,419,468.96|
|Including: Port and terminal facilities|4,261,599.48|-|-|4,261,599.48|
|Container yards and buildings|53,157,869.48|-|-|53,157,869.48|
|Mechanical equipment|-|-|-|-|
|Motor vehicles, cargo ships|-|-|-|-|
|and tugboats|||||
|Other equipment|-|-|-|-|
|V. Total carrying value of fixed assets|3,036,813,842.54|-|-|2,990,556,886.41|
|Including: Port and terminal facilities|1,510,607,515.25|-|-|1,510,835,758.36|
|Container yards and buildings|726,871,245.72|-|-|714,514,549.69|
|Mechanical equipment|649,668,337.62|-|-|615,667,805.81|
|Motor vehicles, cargo ships|119,784,094.13|-|-|122,273,219.35|
|and tugboats|||||
|Other equipment|29,882,649.82|-|-|27,265,553.20|

 Note 1: The increase of total original carrying amount for current period consists of new acquisition of RMB10,738,341.33, an increase of RMB39,318,823.95 of amount
transferred from construction in progress. The decrease of total original carrying amount
for current period consists of a decrease of RMB29,427,124.42 resulting from disposal of
fixed assets.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 13. Fixed assets - continued
Note 2: The increase in accumulated depreciation for current period consists of charge for the current year of RMB93,306,636.81. The decrease in accumulated depreciation for current period consists of a decrease of RMB26,484,411.97 resulting from disposal of fixed assets .
Note 3: As of 30 Jun. 2017, the Group has no fixed assets that used as collateral.
Note 4: As of 30 Jun. 2017, the certificates of title for the Group's buildings with a net book value of RMB316,680,114.53 (total original carrying amount: RMB442,079,399.52) have not yet been obtained. For buildings located within the scope of Chiwan watershed with net book value of RMB30,751,333.69 (original carrying amount: RMB118,989,052.62), the underlying reasons and management's solutions for obtaining certificates of title are set out in Note (V) 15, and the rest certificates of title are under the process of application. (2) Other issues
Unit: RMB
|||||
|-|-|-|-|
|Item||Amount|Note|
|The original amounts of fixed assets fully depreciated but still|638,624,344.81|||
|in use at 30 Jun. 2016||||
|Closing original amount of temporary idle fixed assets|-|||
|Fixed assets disposed or retired in the current year||||
|Original amount of fixed assets disposed or retired|29,427,124.42|||
|in the current year||||
|Net book value of fixed assets disposed or retired|2,942,712.45|||
|in the current year||||
|Gain or loss on disposal or retire of fixed assets|(448,433.95)|||

14. Construction in progress
(1) Details of construction in progress are as follows:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||Closing Balance|||Opening Balance|||
|||Provision for|||Provision for||
|Item|Carrying amount|impairment|Book value|Carrying amount|impairment|Book value|
|Relavent construction work|5,302,912.96|-|5,302,912.96|5,130,743.15|-|5,130,743.15|
|of 50.86 meters coastline,|||||||
|Machong Port|||||||
|Bulk grain warehouses|198,113.21|-|198,113.21|198,113.21|-|198,113.21|
|Phase III,Machong Port|||||||
|Bulk grain warehouses|161,069,706.65|-|161,069,706.65|123,199,182.41|-|123,199,182.41|
|Phase II,Machong Port|||||||
|Technological transformation of|-|-|-|20,061,782.13|-|20,061,782.13|
|Berth 7# , Chiwan Port|||||||
|Others|17,137,489.23|-|17,137,489.23|16,014,537.41|-|16,014,537.41|
|Total|183,708,222.05|-|183,708,222.05|164,604,358.31|-|164,604,358.31|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued
14. Construction in progress - continued
(2) Changes in significant construction in progress
Unit: RMB
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
||||||||Proportion of||||Interest||
||||||||accumulated||Amount of|Including:|capitalisation||
|||||Transfer to fixed|Decrease in||construction||accumulated|capitalised|rate for the||
||Budget|Opening|Increase in the|and intangible|the current||investment in|Construction|capitalised|interest for the|currentperio||
|Item|amount|balance|current period|assets|period|Closing balance|budget|progress|interest|current period|d (%)|Capital source|
|Relavent construction work of 50.86|36,000,000.00|5,130,743.15|172,169.81|-|-|5,302,912.96|14.73|14.73|-|-|-|Self-funding|
|meters|||||||||||||
|coastline, Machong Port|||||||||||||
|Bulk grain warehouses Phase III,|680,000,000.00|198,113.21|-|-|-|198,113.21|0.03|0.03|-|-|-|Self-funding|
|Machong Port|||||||||||||
|Bulk grain warehouses Phase II,|320,000,000.00|123,199,182.41|37,870,524.24|-|-|161,069,706.65|50.33|50.33|1,214,868.30|1,107,689.13|4.35|Self-funding|
|Machong Port|||||||||||||
|Technological transformation of|29,500,000.00|20,061,782.13|3,102,424.93|23,164,207.06|-|-|78.52|100.00|-|-|-|Self-funding|
|Berth 7# , Chiwan Port|||||||||||||
||168,029,423.62|16,014,537.41|17,345,423.40|16,154,616.89|67,854.69|17,137,489.23|19.85|19.85|-|-|-|Self-funding|
|Others|||||||||||||
||1,233,529,423.62|164,604,358.31|58,490,542.38|39,318,823.95|67,854.69|183,708,222.05|||1,214,868.30|1,107,689.13|||
|Total|||||||||||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 15. Intangible assets
Unit: RMB
||||||
|-|-|-|-|-|
||Opening carrying|||Closing carrying|
|Item|amount|Increase|Decrease|amount|
|I. Total original carrying amount|1,604,710,188.11|-|-|1,604,710,188.11|
|Land use rights - prepaid under lease (Note 2)|1,200,267,573.00|-|-|1,200,267,573.00|
|Land use rights - prepaid under investment (Note 2)|122,623,476.00|-|-|122,623,476.00|
|Land use rights - purchased|116,702,512.59|-|-|116,702,512.59|
|Computer software|33,176,476.52|-|-|33,176,476.52|
|Sea area use rights|71,940,150.00|-|-|71,940,150.00|
|Coast line use rights|60,000,000.00|-|-|60,000,000.00|
|II. Total accumulated amortization|593,942,737.10|18,735,921.56|-|612,678,658.66|
|Land use rights - prepaid under lease (Note 2)|488,732,433.09|13,877,084.00|-|502,609,517.09|
|Land use rights - prepaid under investment (Note 2)|59,881,130.78|1,388,439.66|-|61,269,570.44|
|Land use rights - purchased|8,861,845.00|1,193,113.08|-|10,054,958.08|
|Computer software|24,089,592.09|864,122.94|-|24,953,715.03|
|Sea area use rights|9,833,948.08|719,401.50|-|10,553,349.58|
|Coast line use rights|2,543,788.06|693,760.38|-|3,237,548.44|
|III.Total net carrying amount of intangible assets|1,010,767,451.01|-|-|992,031,529.45|
|Land use rights - prepaid under lease (Note 2)|711,535,139.91|-|-|697,658,055.91|
|Land use rights - prepaid under investment (Note 2)|62,742,345.22|-|-|61,353,905.56|
|Land use rights - purchased|107,840,667.59|-|-|106,647,554.51|
|Computer software|9,086,884.43|-|-|8,222,761.49|
|Sea area use rights|62,106,201.92|-|-|61,386,800.42|
|Coast line use rights|57,456,211.94|-|-|56,762,451.56|
|IV.Total provision for impairment|-|-|-|-|
|Land use rights - prepaid under lease|-|-|-|-|
|Land use rights - prepaid under investment|-|-|-|-|
|Land use rights - purchased|-|-|-|-|
|Computer software|-|-|-|-|
|Sea area use rights|-|-|-|-|
|Coast line use rights|-|-|-|-|
|V.Total carrying value of intangible assets|1,010,767,451.01|-|-|992,031,529.45|
|Land use rights - prepaid under lease (Note 2)|711,535,139.91|-|-|697,658,055.91|
|Land use rights - prepaid under investment (Note 2)|62,742,345.22|-|-|61,353,905.56|
|Land use rights - purchased|107,840,667.59|-|-|106,647,554.51|
|Computer software|9,086,884.43|-|-|8,222,761.49|
|Sea area use rights|62,106,201.92|-|-|61,386,800.42|
|Coast line use rights|57,456,211.94|-|-|56,762,451.56|

 Note 1: The amortization for the current period is RMB18,735,921.56.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 15. Intangible assets - continued
Note 2: The Group has obtained the land use right for berth and container yard located in Chiwan watershed area with original amount of RMB1,400,288,984.00 from Nanshan Group. The tenure ranging between 20 - 50 years. The land with a total area of 1,049,946.00 square meters consists of an area of 2.2 square kilometers invested by Shenzhen Investment Holding Corporation, a stockholder of Nanshan Group, and a land arising from marine reclamation by Nanshan Group.
The land use rights for the plot of 270,692 sq. meters (original amount:
RMB122,623,476.00) was contributed by Nanshan Group as capital injection at corporate restructuring of the Company. The rest land use rights were obtained from Nanshan Group by long-term leasing.
Since Nanshan Group has yet obtained official certificates of land use rights for the above lands so far, the Group has no certificates of title for relevant land and buildings either. On 20 March 2001, 18 June 2003 and 29 September 2004, Nanshan Group made commitments on all the land use rights obtained by the Group from it as of the
commitment date respectively: Nanshan Group has no right to withdraw the commitment and will unconditionally consent that, if the Group suffers loss, bears expense and liability, is claimed for compensation or runs into lawsuit, for any actually or potentially illegal and non-executable issues arising from land use right agreements and their relevant documents which signed or will be signed by the Group, Nanshan Group guarantees that the acquiring party and its inheritor of those land use right will be fully exempted from above issues. Hence, directors of the Company believe there is no significant impairment risk in respect of the absence of land use right certificate and no significant contingent liability. The management notes that Nanshan Group is positively approaching relevant government authorities to solve the above historical land problem; however, it cannot predict the exact time to obtain legal certificates of title for above land and relevant building property ownership certificates.
16. Goodwill
Unit: RMB
||||||
|-|-|-|-|-|
|||Increase for the|Decrease for the||
|Investee|Opening balance|current period|current period|Closing balance|
|Chiwan Container Terminal|10,858,898.17|-|-|10,858,898.17|
|Company Limited|||||

Note: The goodwill arose from the acquisition of the minority interests in Chiwan Container Terminal Company Limited in prior years, being the difference of the additional cost of investment and the Group's share of the fair value of the identifiable net assets in Chiwan Container Terminal Company Limited. Based on past years' operation performance and
development forecast of the Company, the management holds the opinion that these is no
need to allocate impairment to goodwill arising from the investment of Chiwan Container
Terminal Company Limited.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 17. Long-term prepaid expenses
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
||||||||Residual|
||||||||useful|
|Item|Opening balance|Increase|Amortization|Other decreases|Closing balance|Original Cost|life|
|Construction expenditure of|54,889,173.04|-|1,028,452.20|-|53,860,720.84|71,991,655.56|26 years|
|Tonggu sea-route (Note )||||||||
|Golf membership|55,303.60|-|10,939.50|-|44,364.10|2,028,316.60|1-6 years|
|Total|54,944,476.64|-|1,039,391.70|-|53,905,084.94|74,019,972.16||

 Note 1: In 2007, Shenzhen municipal government launched the construction work of the public sea route connecting Tonggu sea route, Shekou port area, Chiwan port area, Mawan port area, Qianhaiwan port area and Dachanwan port area ("Connecting Sea Route"). In compliance with the government resolution,60% of dredging expenditure would be born by the investee companies while the remaining40% born by the government.35% of the expenditure born by the investee companies was assumed by the port operators in Western Shenzhen port , and the allocation portion to each operator was determined on the basis of function, waterfront length, and berthing ship of each port operator. The Tonggu sea route construction expenses allocated to the Group is amortized on a straight-line basis over 35 years of the expected useful lives of Connecting Sea Route starting from 2008 when the Tonggu Sea Route is put into use.
18. Deferred tax assets and deferred tax liabilities
(1) Deferred tax assets that are presented at the net amount without offsetting
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item|||Closing balance||Opening balance||||
||||Deductible temporary|Deferred tax assets||Deductible temporary||Deferred tax|
||Item||differences|||differences||assets|
||Deferred income|24,550,555.40||6,137,638.85|24,550,555.40||6,137,638.85||
||Provision for impairment losses of assets|5,947,568.77||1,294,075.11|5,947,568.77||1,294,075.11||
||Depreciation of fixed assets and amortization|620,721.18||146,555.33|620,721.18||146,555.33||
||of intangible assets||||||||
||Organization costs|21,347,408.91||4,410,860.21|21,347,408.91||4,410,860.21||
||Others|1,105,415.87||183,203.97|1,303,115.87||232,628.97||
||Total|53,571,670.13||12,172,333.47|53,769,370.13||12,221,758.47||

 (2) Deferred tax liabilities that are presented at the net amount without offsetting
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item|||Closing balance|||Opening balance|||
||||Taxable temporary||Deferred tax||Taxable temporary|Deferred tax liabilities|
||Item||differences||liabilities||differences||
||Depreciation of fixed assets and|-||-||-||-|
||amortization of intangible assets||||||||
||Change in fair value of available-|8,680,000.00||2,170,000.00||7,430,000.00||1,857,500.00|
||for-sale financial assets||||||||
||Total|8,680,000.00||2,170,000.00||7,430,000.00||1,857,500.00|

 (3) Deferred tax assets or liabilities that are presented at the net amount after offsetting Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|l|Closing amount of|t|li|Closing amount of|l|Opening amount of|li|Opening amount of|
|||deferred tax assets and|||deferred tax assets or||deferred tax assets and||deferred tax assets or|
|||iabilities that are offse|||abilities after offsetting||iabilities that are offset||abilities after offsetting|
|Deferred tax assets|-|||12,172,333.47||-||12,221,758.47||
|Deferred tax liabilities|-|||2,170,000.00||-||1,857,500.00||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 18. Deferred tax assets and deferred tax liabilities - continued
(4) Details of unrecognized deferred tax assets
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Deductible temporary differences|96,800,856.43||102,828,757.97||
|Deductible losses|177,001,767.54||177,001,767.54||
|Total|273,802,623.97||279,830,525.51||

 Note: Deferred tax assets are not recognized for the above-mentioned deductible temporary differences and deductible losses due to uncertainty whether sufficient taxable profits will be available in the future.
(5) Deductible losses for unrecognized deferred tax assets will be expired in the following years Unit: RMB
|||||
|-|-|-|-|
|Year|Closing balance|Opening balance|Note|
|2017|30,345,268.82|30,345,268.82||
|2018|75,300,266.59|75,300,266.59||
|2019|49,621,628.48|49,621,628.48||
|2020|3,145,611.79|3,145,611.79||
|2021|18,588,991.86|18,588,991.86||
|Total|177,001,767.54|177,001,767.54||

19. Other non-current assets
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Land Use Right (Note)|132,334,704.86|132,369,704.86|
|Prepayments on construction|1,348,280.82|-|
|Total|133,682,985.68|132,369,704.86|

 Note: On March and October 2006, November 2007 and September 2014, the Company entered into Cooperation Framework Agreement on Usage of Coastline and Land for2#-5# Berth at Machong Port in Dongguan and its supplementary agreements with Dongguan Humen Port Administration Commission. The Company purchased use rights of coastline and land with a total area of 800,000 square meters, including waters with depth of 700 meters from the front of terminal, and coastline from berth2# to berth5# with a total length of 1,200 meters at Dongguan Machong Port at a consideration of RMB260,000,000. As the Group has not obtained the use right certificates for the above land, the relevant prepayments were therefore recognized as other non-current assets.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT– continued 20. Accounts payable
(1) Details of accounts payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Service|44,252,639.72|46,961,672.78|
|Material purchase|35,888,557.79|21,834,346.04|
|Rental|10,656,649.21|10,891,405.40|
|Construction|5,994,820.46|9,619,783.53|
|Equipment|1,797,529.92|137,389.35|
|Total|98,590,197.10|89,444,597.10|

 (2) There is no significant accounts payable agaed more than one year at the end of the year. 21. Receipts in advance
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Service fee receipt in advance|129,822,174.32|30,668,212.67|

 22. Employee benefits payable
(1) Employee benefits payable
Unit:RMB
||||||||
|-|-|-|-|-|-|-|
|Item||Opening balance||Increase for the|Decrease for thecurrent period|Closing balance|
||Item|||current period|||
||I. Short-term benefits|86,581,824.26|147,850,324.24||177,383,011.68|57,049,136.82|
||II. Post-employment benefits - defined|-|18,728,233.34||18,728,233.34|-|
||contribution plans||||||
||III. Termination benefits|1,996,668.00|2,410,127.69||4,406,795.69|-|
||Total|88,578,492.26|168,988,685.27||200,518,040.71|57,049,136.82|

 (2) Short-term benefits
Unit:RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Opening balance||Increase for the||Decrease for the|Closing balance|
||Item|||current period||current period||
||I. Wages and salaries, bonuses, allowances|74,217,691.80|123,073,122.72||152,633,213.65||44,657,600.87|
||and subsidies|||||||
||II. Staff welfare|-|3,992,171.99||3,992,171.99||-|
||III. Social insurance charges|535.54|5,250,958.47||5,251,494.01||-|
||Including:|-|4,212,709.87||4,212,709.87||-|
||Medical insurance|||||||
||Work injury insurance|535.54|581,301.87||581,837.41||-|
||Maternity insurance|-|456,946.73||456,946.73||-|
||IV. Housing funds|-|9,672,140.58||9,672,140.58||-|
||V. Labor union and employee education funds|12,363,596.92|3,424,022.14||3,396,083.11||12,391,535.95|
||VI. Others|-|2,437,908.34||2,437,908.34||-|
||Total|86,581,824.26|147,850,324.24||177,383,011.68||57,049,136.82|

Note: There are no amounts in arrears under the employee benefits payable.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT– continued 22. Employee benefits payable- continued
(3) Post-employement benefits - defined contribution plans
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Opening balance||Increase for the||Decrease for the|Closing balance|
||Item|||current period||current period||
||I. Basic pension (Note 1)|-|13,061,176.94||13,061,176.94||-|
||II. Unemployment insurance (Note 1)|-|213,805.12||213,805.12||-|
||III. Enterprise annuity plan (Note 2)|-|5,453,251.28||5,453,251.28||-|
||Total|-|18,728,233.34||18,728,233.34||-|

 Note 1: The Group participates in the social security contributions and the unemployment insurance plan established by government institutions as required. According to such plans, the Group contributes14% (13% for staffs without Shenzhen householder register ) ,2%(1% for staffs in Dongguan City) respectively to such plans based on the employee's basic salary each month.
During the year, the Group is obliged to contribute RMB 11,945,008.55 and RMB 208,267.51 respectively to the social security contributions and the unemployment insurance plan (2015: RMB 11,277,331.36 and RMB 338,221.02). As at 30 Jun. 2016, the Group have no outstanding contributions to be paid to the social security
contributions and the unemployment insurance plan.
Note 2: On 3 June 2008, the Group participated in a group defined enterprise annuity plan of Nanshan Group approved by Shenzhen municipal government. This supplementary pension contributions were paid into a managed account through Nanshan Group. 23. Taxes payable
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|Enterprise income tax|20,001,270.23|57,211,155.05|45,847,403.00|31,365,022.28|
|Withholding tax (Note)|21,288,297.33|-|-|21,288,297.33|
|Value-added-tax|3,472,562.39|13,170,091.84|14,561,842.79|2,080,811.44|
|Others|3,742,699.85|17,068,122.05|16,033,145.76|4,777,676.14|
|Total|48,504,829.80|87,449,368.94|76,442,391.55|59,511,807.19|

 Note: The amount represents the withholding tax provided by the Group at the rate of5% or10% when paying out dividends to foreign shareholders and Chiwan Wharf Holdings (H.K.) Limited located in Hong Kong.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 24. Interest payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Interest on corperate debentures|6,371,260.30|1,952,876.72|
|Interest on short-term borrowings|-|614,383.56|
|Total|6,371,260.30|2,567,260.28|

 25. Dividends payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Ordinary share dividends|319,802,810.47|-|
|Including: Nanshan Group|104,004,785.23|-|
|Shenzhen Malai Warehouse Co., Ltd.|79,950,702.77|-|
|Public A Shares|46,619,189.19|-|
|Public B Shares|89,228,133.28|-|

 26. Other payables
(1) Other payables presented by the nature of amount
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Amount payable for construction and quality warranty|26,627,528.10|37,664,828.31|
|Temporary receipts|33,281,789.88|11,011,631.18|
|Security expense payable|3,643,939.46|7,942,731.71|
|Deposits received|4,781,811.05|4,424,738.15|
|Others|6,770,451.11|13,546,464.74|
|Total|75,105,519.60|74,590,394.09|

 (2) Significant other payables aged more than one year
There is no significant other payables agaed more than one year at the end of the year.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 27.Other current liabilities
(1) Short-term bonds payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Short-term bonds payable|-|250,000,000.00|

 (2) Changes in short-term bonds payable:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
|||||||Amount issuedin the current|Interest|Discount or|||
||||||||accrued at par||||
||||Term of||||during the|premium|Repayment in the|Closing|
|Name of bond|Face value|Date of issue|the bond|Amount of issue|Opening balance|period|year|amortization|current year|balance|
|16 Chiwan port SCP003(Note)|250,000,000.00|07/12/2016|180days|-|250,000,000.00|-|4,193,835.62|-|250,000,000.00|-|
|Total|250,000,000.00|||-|250,000,000.00|-|4,193,835.62|-|250,000,000.00|-|

 Note: According to the Notice of Registration Acceptance (filed as Zhong Shi Xie Zhu[2015] No. SCP121) issued by China's Interbank Market Dealers Association received by the Company on 5 June 2015, the Association approved the Company's short-term financing registration of RMB 1.6 billion in total.
28. Bonds payable
(1) Bonds payable
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Corporate bonds|298,629,041.09|298,331,506.85|

 (2) Changes of bonds payable:
Unit: RMB
||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|
||||Term of the||i||||Repayment||
|||||||Amount||Discount or|in the||
|||||||ssued in the|Interest accrued at|premium|current||
|Name of bonds|Face value|Date of issue|bond|Amount of issue|Opening balance|current year|par during the year|amortization|year|closing balance|
||300,000,000.00|11/10/2016|3 years|300,000,000.00|298,331,506.85|-|4,418,383.58|297,534.24|-|298,629,041.09|
|13 ChiWan 01(Note)|||||||||||
|||||300,000,000.00|298,331,506.85|-|4,418,383.58|297,534.24|-|298,629,041.09|
|Total|||||||||||

 Note: According to the Notice of Registration Acceptance (filed as Zhong Shi Xie Zhu[2016] MTN No. 325) issued by the China's Interbank Market Dealers Association received by the Company on 6 August 2016. The Company is entitled to issue mid-term bills no more than RMB 800,000,000 with an effective period of 2 years.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 29. Special payables
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing Balance|Reason|
|Refunds of Harbor Construction Fee|34,326,860.44|-|999,193.80|33,327,666.64|Note|

 Note: The item is refunds of harbor construction fee from Shenzhen Traffic Bureau. According to Measures of Harbor Construction Fee Management released by Ministry of Finance, the funds should be managed in separate account and can be only used on fundamental facilities' construction of marine transportation.
30. Deferred income
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Closing||
|Item|Opening balance|Increase|Decrease|Balance|Reason|
|Deferred income|64,613,319.88|200,643.74|3,990,183.72|60,823,779.90||
|Including: Berth priority right|35,636,464.68|200,643.74|3,491,382.54|32,345,725.88|Note 1|
|Government grants related|28,976,855.20|-|498,801.18|28,478,054.02|Note 2|
|to assets||||||
|Total|64,613,319.88|200,643.74|3,990,183.72|60,823,779.90||
|Less: Non-current liabilities due within|-|-|-|-||
|one year||||||
|Including: Berth priority right|-|-|-|-||
|Government grants related|-|-|-|-||
|to assets||||||
|Deferred income|64,613,319.88|-|-|60,823,779.90||

 Note 1: This item represents berth priority right with total amounts to USD14,000,000 that agreed in the contract signed in 2003. The Group should satisfy the berthing requirement of contracted customers in priority during the contract period. According to the contract, the berth priority right should be amortized over twenty years on the straight-line basis. Note 2: The item represents the government grants received by the Group which is based on the Announcement Released by National Development and Reform Commission about 2010 Investment Plans within Budget of Grains and Modern Logistics Program(NDRC[2010] No.1263), the Announcement Released by Guangdong Provincial Department of Finance about 2012 Provincial Special Funds to Guide the Development of Modern Service Project (Guangdong Production Letter[2012] No. 621) and Transportation of energy saving special funds Interim Measures (Finance Building[2011] No. 374),Nanshan District, Shenzhen, energy saving projects funded sub contract, Announcement Released by Reform and Development Commission of Guangdong Province and the Grain Bureau of Guangdong Province about 2015 Investment Plans within Budget of Grains and Modern Logistics Program(GDRC[2015] No.521), Measures Released by Dongguan Government about Grants Management to Special Fund Program for the Development of National and Provincial Industries(DGM[2013]No.162), Interim Measures Released by Shenzhen Government about the Management to Special Fund used in Recycling
Economy and Energy Savings, and the Reply of Ministry of Transport to Implementation
Program of Building 19 Regional Projects such as the Construction of a Green Recycling
Low-carbon Transportation City by Beijing Government (Transportation Law
Letter[2014]No.499) . The government grants shall be amortized on the straight-line basis
over the useful life of the related assets.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VI) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 30. Deferred income - continued
Programs related with government grants:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
||||The amount included|||Related to|
|||New subsidy of|in operating income|Other||assets/Related to|
|Liability Program|Opening balance|the year|of the year|changes|Closing Balance|income|
|Special funds for modern|23,193,044.06|-|83,478.24|-|23,109,565.82|Related to assets|
|logistics project|||||||
|Special funds for the|1,357,511.80|-|26,022.60|-|1,331,489.20|Related to assets|
|development of modern|||||||
|service guide|||||||
|Special funds for energy-|1,770,000.00|-|180,000.00|-|1,590,000.00|Related to assets|
|saving and emission|||||||
|reduction of transportation|||||||
|Green carbon harbor thematic|66,299.40|-|9,300.30|-|56,999.10|Related to assets|
|projects subsidy granted by|||||||
|central government|||||||
||1,806,666.62|-|100,000.02|-|1,706,666.60|Related to assets|
|Reward for energy saving|||||||
||783,333.32|-|100,000.02|-|683,333.30|Related to assets|
|Subsidy for electric buses|||||||
||28,976,855.20|-|498,801.18|-|28,478,054.02||
|Total|||||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 31. Share capital
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|||Changes for the period||||||
|||New issue of||Capitalisation of||||
||Opening balance|share|Bonus issue|surplus reserve|Others|Subtotal|Closing balance|
|2017:||||||||
|I. Restricted tradable shares||||||||
|1. State-owned shares|-|-|-|-|-|-|-|
|2. State-owned legal person|-|-|-|-|-|-|-|
|shares||||||||
|3. Other domestic shares|305,100.00|-|-|-|53,825.00|53,825.00|358,925.00|
|4. Other foreign shares|-|-|-|-|-|-|-|
|Total restricted tradable shares|305,100.00|-|-|-|53,825.00|53,825.00|358,925.00|
|II. Non-restricted tradable shares||||||||
|1. Ordinary shares denominated|464,866,050.00|-|-|-|(562.00)|(562.00)|464,865,488.00|
|in RMB||||||||
|2. Foreign capital shares listed|179,592,580.00|-|-|-|(53,263.00)|(53,263.00)|179,539,317.00|
|domestically||||||||
|3. Foreign capital shares listed|-|-|-|-|-|-|-|
|overseas||||||||
|4. Others|-|-|-|-|-|-|-|
|Total non-restricted tradable|644,458,630.00|-|-|-|(53,825.00)|(53,825.00)|644,404,805.00|
|shares||||||||
|III. Total shares|644,763,730.00|-|-|-|-|-|644,763,730.00|
|2016:||||||||
|I. Restricted tradable shares||||||||
|1. State-owned shares|-|-|-|-|-|-|-|
|2. State-owned legal person|-|-|-|-|-|-|-|
|shares||||||||
|3. Other domestic shares|431,094.00|-|-|-|(125,994.00)|(125,994.00)|305,100.00|
|4. Other foreign shares|-|-|-|-|-|-|-|
|Total restricted tradable shares|431,094.00|-|-|-|(125,994.00)|(125,994.00)|305,100.00|
|II. Non-restricted tradable shares||||||||
|1. Ordinary shares denominated|464,866,999.00|-|-|-|(949.00)|(949.00)|464,866,050.00|
|in RMB||||||||
|2. Foreign capital shares listed|179,465,637.00|-|-|-|126,943.00|126,943.00|179,592,580.00|
|domestically||||||||
|3. Foreign capital shares listed|-|-|-|-|-|-|-|
|overseas||||||||
|4. Others|-|-|-|-|-|-|-|
|Total non-restricted tradable|644,332,636.00|-|-|-|125,994.00|125,994.00|644,458,630.00|
|shares||||||||
|III. Total shares|644,763,730.00|-|-|-|-|-|644,763,730.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 32. Capital reserve
Unit: RMB
||||||
|-|-|-|-|-|
|Items|Opening balance|Increase|Decrease|Closing balance|
|2017:|||||
||163,560,083.00|-|-|163,560,083.00|
|Capital premium|||||
||163,560,083.00|-|-|163,560,083.00|
|Including: Capital contributed by investors|||||
|Exercised conversion option of convertible corporate|-|-|-|-|
|bonds|||||
||-|-|-|-|
|Debt converted into capital|||||
|Differences arising from business combination involving|-|-|-|-|
|enterprises under common control|||||
|Equity acquisition from minority shareholders|-|-|-|-|
|of subsidiaries|||||
||-|-|-|-|
|Capital reserve converted into capital|||||
||3,920,298.25|-|-|3,920,298.25|
|Other capital reserve|||||
||-|-|-|-|
|Including: Equity split from convertible corporate bonds|||||
||-|-|-|-|
|Fair value of equity-settled share-based equity instrument|||||
|Surplus of compensation granted by government for|-|-|-|-|
|relocation in the public interests|||||
|Transfer from capital reserve under the|(2,781,133.00)|-|-|(2,781,133.00)|
|previous accounting system|||||
||6,701,431.25|-|-|6,701,431.25|
|Others|||||
||167,480,381.25|-|-|167,480,381.25|
|Total|||||
|2016:|||||
||163,560,083.00|-|-|163,560,083.00|
|Capital premium|||||
||163,560,083.00|-|-|163,560,083.00|
|Including: Capital contributed by investors|||||
||-|-|-|-|
|Excised conversion option of convertible corporate bonds|||||
||-|-|-|-|
|Debt converted into capital|||||
|Differences arising from business combination involving|-|-|-|-|
|enterprises under common control|||||
|Equity acquisition from minority shareholders of|-|-|-|-|
|subsidiaries|||||
||-|-|-|-|
|Capital reserve converted into capital|||||
||2,004,656.15|1,915,642.10|-|3,920,298.25|
|Other capital reserve|||||
||-|-|-|-|
|Including: Equity split from convertible corporate bonds|||||
||-|-|-|-|
|Fair value of equity-settled share-based equity instrument|||||
|Surplus of compensation granted by government for|-|-|-|-|
|relocation in the public interests|||||
|Transfer from capital reserve under the previous|(2,781,133.00)|-|-|(2,781,133.00)|
|accounting system|||||
||4,785,789.15|1,915,642.10(note)|-|6,701,431.25|
|Others|||||
||165,564,739.15|1,915,642.10|-|167,480,381.25|
|Total|||||

Note：This is the capital reserve recoginized on pro rata basis of ownership interest held by the Group due to the changes of other equity of the associate of the Group, China Merchant Bonded Logistics.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 33. Other comprehensive income
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Item||Opening balance|Amount incurred in current year|||||Closing balance|
||||Amountbefore incometax incurred incurrent year|Less: Amountincluded in othercomprehensiveincome in the priorperiods that istransferred to profitor loss for the period|Less: incometax expenses|Post-taxamountattributable toshareholdersof theCompany|Post-taxamountattributableto minorityholders||
||Item||||||||
||2017||||||||
||I. Other comprehensive income that will not be|-|-|-|-|-|-|-|
||reclassified subsequently to profit or loss||||||||
||Including: Change as a result of remeasurement of|-|-|-|-|-|-|-|
||the net defined benefit plan liability or asset||||||||
||Share of other comprehensive income of the|-|-|-|-|-|-|-|
||investee under the equity method that will not be||||||||
||reclassified to profit or loss||||||||
||II. Other comprehensive income that will be|(8,039,646.43)|1,250,000.00|-|312,500.00|937,500.00|-|(7,102,146.43)|
||reclassified subsequently to profit or loss||||||||
||Including: Share of other comprehensive income|100,000.00|-|-|-|-|-|100,000.00|
||of the investee under the equity method that will||||||||
||be reclassified to profit or loss||||||||
||Gains or losses on changes in fair value of|5,572,500.00|1,250,000.00|-|312,500.00|937,500.00|-|6,510,000.00|
||available-for-sale financial assets||||||||
||Gains or losses on reclassification of held-to-|-|-|-|-|-|-|-|
||maturity investments to available-for-sale||||||||
||financial assets||||||||
||Effective portion of gains or losses on|-|-|-|-|-|-|-|
||cash flow hedges||||||||
||Translation differences of financial statements|(13,712,146.43)|-|-|-|-|-|(13,712,146.43)|
||denominated in foreign currencies||||||||
||Total|(8,039,646.43)|1,250,000.00|-|312,500.00|937,500.00|-|(7,102,146.43)|
||2016||||||||
||I. Other comprehensive income that will not be|-|-|-|-|-|-|-|
||reclassified subsequently to profit or loss||||||||
||Including: Change as a result of remeasurement of|-|-|-|-|-|-|-|
||the net defined benefit plan liability or asset||||||||
||Share of other comprehensive income of the|-|-|-|-|-|-|-|
||investee under the equity method that will not||||||||
||be reclassified to profit or loss||||||||
||II. Other comprehensive income that will be|(7,889,646.43)|(200,000.00)|-|(50,000.00)|(150,000.00)|-|(8,039,646.43)|
||reclassified subsequently to profit or loss||||||||
||Including: Share of other comprehensive income|100,000.00|-|-|-|-|-|100,000.00|
||of the investee under the equity method that will||||||||
||be reclassified to profit or loss||||||||
||Gains or losses on changes in fair value of|5,722,500.00|(200,000.00)|-|(50,000.00)|(150,000.00)|-|5,572,500.00|
||available-for-sale financial assets||||||||
||Gains or losses on reclassification of held-to-|-|-|-|-|-|-|-|
||maturity investments to available-for-sale||||||||
||financial assets||||||||
||Effective portion of gains or losses on|-|-|-|-|-|-|-|
||cash flow hedges||||||||
||Translation differences of financial statements|(13,712,146.43)|-|-|-|-|-|(13,712,146.43)|
||denominated in foreign currencies||||||||
||Total|(7,889,646.43)|(200,000.00)|-|(50,000.00)|(150,000.00)|-|(8,039,646.43)|

 34. Special reserve
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|2017:|||||
|Production safety fee|4,145,765.65|9,845,498.98|5,828,636.63|8,162,628.00|
|2016:|||||
|Production safety fee|3,719,755.58|19,844,261.39|19,418,251.32|4,145,765.65|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 35. Surplus reserve
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Opening balance|Increase|Decrease|Closing balance|
|2017:|||||
|Statutory surplus reserve|520,074,434.56|-|-|520,074,434.56|
|2016:|||||
|Statutory surplus reserve|520,074,434.56|-|-|520,074,434.56|

 Note: In accordance with the Company Law of the PRC and the Company's Articles of Association, the Company should appropriate10% of net profit for the year to the statutory surplus reserve, and the Company can cease appropriation when the statutory surplus reserve accumulates to more than50% of the registered capital. The statutory surplus reserve can be used to make up for the loss or increase the paid-in capital after approval. 36. Unappropriated profit
Unit: RMB
||||
|-|-|-|
|||Proportion of|
|||appropriation or|
|Item|Amount|allocation|
|2017:|||
|Before adjustment: Unappropriated profit at the end of prior year|3,381,390,887.86||
|Adjustment: Total unappropriated profit at the beginning of year|-||
|After adjustment: Unappropriated profit at the beginning of year|3,381,390,887.86||
|Add: Net profit attributable to shareholders|276,407,832.70||
|of the Company for the year|||
|Less: Appropriation to statutory surplus reserve|-|Note1|
|Appropriation to discretionary surplus reserve|-||
|Appropriation to general risk reserve|-||
|Ordinary shares' dividends payable|319,802,810.08|Note2|
|Ordinary shares' dividends converted into share capital|-||
|Unappropriated profit at the end of the year|3,337,995,910.48||
|2016:|||
|Before adjustment: Unappropriated profit at the end of prior year|3,113,367,524.19||
|Adjustment: Total unappropriated profit at the beginning of year|-||
|After adjustment: Unappropriated profit at the beginning of year|3,113,367,524.19||
|Add: Net profit attributable to shareholders|532,376,492.97||
|of the parent company for the year|||
|Less: Appropriation to statutory surplus reserve|-||
|Appropriation to discretionary surplus reserve|-||
|Appropriation to general risk reserve|-||
|Ordinary shares' dividends payable|264,353,129.30||
|Ordinary shares' dividends converted into share capital|-||
|Unappropriated profit at the end of the year|3,381,390,887.86||

Note 1: Appropriation to statutory surplus reserve
According to the Articles of Association, the Company is required to transfer10% of its
net profit to the statutory surplus reserve. The Company can cease appropriation when the
statutory surplus reserve accumulated to more than50% of the register capital.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 36. Unappropriated profit - continued
Note 2: Cash dividends approved by shareholders' meeting during the year
Pursuant to the resolution ofshareholders’ meeting on 5 June 2017, on the basis of 644,763,730 issued shares for the year ended 31 December 2016, dividends of RMB4.96 for every 10 shares were distributed to all shareholders, which amounted to RMB 319,802,810.08.
Note 3: Appropriation to surplus reserve made by subsidiaries
As of 30 Jun. 2017, the balance of the Group's unappropriated profit included
appropriation to surplus reserve made by subsidiaries amounting to RMB587,698,230.64 (31 December 2016: RMB587,698,230.64).
37. Operating income and operating costs
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item|||Jan.-Jun. 2017|||Jan.-Jun. 2016|
||Item|Income||Cost|Income||
||Principal operating|912,048,648.43||535,264,027.24|892,403,001.57||
||Other operating|17,559,850.48||708,808.22|12,406,650.67||
||Total|929,608,498.91||535,972,835.46|904,809,652.24||

 38. Business taxes and levies
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Business tax|-|1,499,967.15|
|City construction and maintenance tax|770,184.01|861,254.66|
|Education surcharges|649,751.23|718,325.63|
|Others|1,509,581.95|88,394.97|
|Building taxes|2,170,251.83|-|
|Total|5,099,769.02|3,167,942.41|

 39. Administrative expenses
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Employee benefits|53,881,018.25|60,212,414.71|
|Taxes|3,698.28|2,893,986.34|
|Depreciation expenses|1,578,761.13|1,436,738.38|
|Amortization of intangible assets|487,581.23|426,838.44|
|Others|16,373,672.29|16,977,890.84|
|Total|72,324,731.18|81,947,868.71|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 40. Financial expenses
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Interest expense|8,737,219.20|21,509,775.01|
|Less: Capitalized interest expenses|1,107,689.13|-|
|Less: Interest income|4,186,596.08|3,395,655.74|
|Exchange differences|6,393,283.53|(4,428,671.94)|
|Less: Capitalized exchange differences|-|-|
|Others|316,171.30|568,167.02|
|Total|10,152,388.82|14,253,614.35|

 41. Impairment losses of assets
Unit: RMB
|||||
|-|-|-|-|
||Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
||I. Bad debt losses|(1,908,239.31)|288,044.16|
||II. Write-down of inventories|-|-|
||III. Impairment on available-for-sale financial assets|-|-|
||IV. Impairment on held-to-maturity investments|-|-|
||V. Impairment on long-term equity investments|-|-|
|VI. Impairment on investment properties||-|-|
||VII. Impairment on fixed assets|-|-|
||VIII. Impairment on construction materials|-|-|
||IX. Impairment on construction in progress|-|-|
||X. Impairment on bearer biological assets|-|-|
||XI. Impairment on oil and gas assets|-|-|
||XII. Impairment on intangible assets|-|-|
||XIII. Impairment on goodwill|-|-|
||XIV. Others|-|-|
||Total|(1,908,239.31)|288,044.16|

 42. Investment income
(1) Details of investment income
Unit: RMB
||||
|-|-|-|
||Jan.-Jun. 2017|Jan.-Jun. 2016|
|Long-term equity investments income under equity method|60,092,957.45|63,008,068.56|
|Investment income on available-for-sale financial assets|9,417,000.00|6,292,187.85|
|Total|69,509,957.45|69,300,256.41|

 (2) Details of long-term equity investments income under equity method
Unit: RMB
|||||
|-|-|-|-|
||||Reasons for increases or|
||||decreases in the current|
|Investee|Jan.-Jun. 2017|Jan.-Jun. 2016|compared to the prior period|
|MPIL|23,193,786.97|16,389,086.06|Net profit of investee fluctuates.|
|China Overseas Harbor Affairs (Laizhou) Co.,Ltd|29,155,806.47|37,197,754.16|Net profit of investee fluctuates.|
|CMBL|5,476,000.01|7,747,007.96|Net profit of investee fluctuates.|
|China Merchants Holdings (international )|2,267,364.00|1,674,220.38|Net profit of investee fluctuates|
|Information Technology Co.,Ltd||||
||60,092,957.45|63,008,068.56||
|Total||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENT - continued 43. Non-operating income
(1) Non-operating income
Unit: RMB
|||||
|-|-|-|-|
||||Amount recognized|
||||as non-recurring|
||||gain and loss in the|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|current period|
|Government grants|498,801.18|419,197.16|498,801.18|
|Gains on disposal of non-current assets|293,053.57|321,539.16|293,053.57|
|Including: Gains on disposal of fixed assets|293,053.57|140,891.16|293,053.57|
|Insurance compensation income|-|1,421,480.12|-|
|Others|1,615,361.54|476,997.37|1,615,361.54|
|Total|2,407,216.29|2,639,213.81|2,407,216.29|

 (2) Government grants
Unit: RMB
|||||
|-|-|-|-|
||||Related to|
||||assets/Related to|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|income|
|Local government subsidy for new-energy vehicles|-|20,000.00|Related to income|
|Special funds for modern logistics project|83,478.24|83,478.24|Related to assets|
|Special funds for guiding the development of the|26,022.60|26,022.60|Related to assets|
|modern service sector||||
|Reward for energy saving|100,000.02|-|Related to assets|
|Special funds for energy saving and emission|180,000.00|280,000.02|Related to assets|
|reduction in transportation||||
|Central government subsidy for low-carbon green|9,300.30|9,696.30|Related to assets|
|port project||||
|Subsidy for electric buses|100,000.02|-|Related to assets|
|Total|498,801.18|419,197.16||

44. Non-operating expenses
Unit: RMB
|||||
|-|-|-|-|
||||Amount recognized as|
||||non-recurring gain and|
||||loss in the current|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|period|
|Total losses on disposal of non-current assets|741,487.52|497,708.60|741,487.52|
|Including: Losses on disposal of fixed assets|741,487.52|393,008.61|741,487.52|
|Donations contributed|-|-|-|
|Amercement outlay|-|862.00|-|
|Others|1,136.84|2,895.03|1,136.84|
|Total|742,624.36|501,465.63|742,624.36|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 45. Income tax expenses
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Current tax expense|58,847,008.80|49,661,006.76|
|Deferred income tax|49,425.00|-|
|Total|58,896,433.80|49,661,006.76|

 Reconciliation of income tax expenses to the accounting profit is as follows:
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Accounting profit|379,141,563.12|384,431,662.61|
|Income tax expenses calculated at 25% (the prior year: 25 %)|94,785,390.78|96,107,915.65|
|Effect of expenses that are not deductible for tax purposes|13,943.60|1,056,319.90|
|Effect of tax-free income|(17,377,489.36)|(17,325,064.10)|
|Effect of unrecognized deductible losses and deductible temporary|(2,173,730.24)|(31,720.53)|
|differences for tax purposes|||
|Effect of different tax rates of subsidiaries operating in other jurisdictions|(253,656.69)|(153,427.70)|
|Effect of tax preference policy|(11,986,902.50)|(31,303,251.96)|
|Withholding income tax (Note)|1,632,930.63|1,844,132.60|
|Effect of previous unrecognized deductible temporary differences|(5,744,052.41)|(533,897.10)|
|of deferred income tax|||
|Income tax expenses|58,896,433.80|49,661,006.76|

 Note: Withholding income tax was accrued at the rate of5% or10% for dividend payable to Chiwan Wharf Holdings (H.K.) Limited, declared by those PRC subsidiaries of which Chiwan Wharf Holdings (H.K.) Limited is a shareholder.
46. Other comprehensive income
Please refer to Note (V) 36.
47. Borrowing cost
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item|||Jan.-Jun. 2017||Jan.-Jun. 2016|||
||||Amount of borrowing|Capitalizationrate||Amount of borrowing|Capitalizationrate|
||||costs capitalized|||costs capitalized||
||Item||during the year|||during the year||
||Construction in progress|1,107,689.13||4.35%|-||-|
||Sub-total of borrowing costs capitalized|1,107,689.13||-|-||-|
||during the year|||||||
||Borrowing costs recognized in profit|7,629,530.07||-|21,509,775.01||-|
||or loss during the year|||||||
||Total of borrowing costs during the year|8,737,219.20||-|21,509,775.01||-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 48. Notes to items in the cash flow statement
(1) Other cash receipts relating to operating activities
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Government grants|20,000.00|-|
|Tonggu sea-route expenses|14,469,500.00|-|
|Interest income|3,498,376.84|3,480,587.17|
|Insurance indemnity|143,442.01|589,702.77|
|Refunds of harbor construction fee|361,547.93|187,255.90|
|Others|11,805,226.45|1,520,900.83|
|Total|30,298,093.23|5,778,446.67|

 (2) Other cash payments relating to operating activities
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Port expenses|1,840,742.84|3,110,545.07|
|Office expenses & utilities|1,813,506.04|3,452,774.73|
|Consulting & auditing|1,163,253.24|958,941.16|
|Entertainment|1,175,602.09|1,286,439.91|
|Verhicles|1,295,699.65|1,384,524.03|
|Property insurance|1,683,669.16|961,760.89|
|Travel & accommodation|604,205.21|990,291.95|
|River channel occupation fee|-|14,469,500.00|
|Others|24,354,514.37|19,521,179.59|
|Total|33,931,192.60|46,135,957.33|

 (3) Other cash payments relating to financing activities
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Debt issue costs|15,792.33|25,986.89|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 49. Supplementary information to the cash flow statement
(1) Supplementary information to the cash flow statement
Unit: RMB
||||
|-|-|-|
|Supplementary|Jan.-Jun. 2017|Jan.-Jun. 2016|
|1. Reconciliation of net profit to cash flows from operating activities:|||
|Net profit|320,245,129.32|334,770,655.85|
|Add: Provision for impairment losses of assets|(1,908,239.31)|288,044.16|
|Depreciation of fixed assets|93,053,985.18|96,908,007.22|
|Depreciation and amortization of investment property|412,916.04|460,990.32|
|Amortization of intangible assets|18,735,921.56|19,233,130.89|
|Amortization of long-term prepaid expenses|1,039,391.70|1,045,225.04|
|Losses on disposal of fixed assets , intangible assets and other|448,433.95|176,169.44|
|long-term assets|||
|Financial expenses|14,320,347.84|17,480,007.18|
|Losses (gains) arising from investments|(69,509,957.45)|(69,300,256.41)|
|Decrease(Increase) in deferred tax assets|49,425.00|-|
|Decrease(Increase) in inventories|(3,155,094.07)|(581,772.67)|
|Decrease(Increase) in operating receivables|(42,492,788.96)|(46,999,409.75)|
|Increase(Decrease) in operating payables|88,292,309.11|15,176,452.53|
|Net cash flows from operating activities|419,531,779.91|368,657,243.80|
|2. Significant investing and financing activities that do not involve|||
|cash receipts and payments:|||
|Conversion of debt into capital|-|-|
|Convertible bonds due within one year|-|-|
|Fixed assets acquired under finance leases|-|-|
|3. Net changes in cash and cash equivalents:|||
|Closing balance of cash|593,542,501.41|405,872,026.99|
|Less: Opening balance of cash|426,036,702.87|683,138,123.66|
|Add: Closing balance of cash equivalents|-|-|
|Less: Opening balance of cash equivalents|-|-|
|Net increase(Decrease) in cash and cash equivalents|167,505,798.54|(277,266,096.67)|

 (2) Composition of cash and cash equivalents
Unit: RMB
|||||
|-|-|-|-|
|Item|Closing balance||Opening balance|
|I. Cash|593,542,501.41|426,036,702.87||
|Including: Cash on hand|9,319.45|28,943.84||
|Bank deposits|579,572,897.61|425,934,063.55||
|Other monetary funds|13,960,284.35|73,695.48||
|II. Cash equivalents|-|-||
|III. Closing balance of cash and cash equivalents|593,542,501.41|426,036,702.87||

 50. Asset with restricted ownership or use right
The Group has no assets with restricted ownership or use right.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS - continued 51. Foreign currency monetary items
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Item|||Closing balance of original||Exchange|Closing amount in RMB|
||Item||currency||rate||
||Cash and bank balances|||||263,432,256.56|
||Including: HKD|22,724,192.12||0.8679||19,722,326.34|
||USD|35,975,131.41||6.7744||243,709,930.22|
||Interest Receivable|||||2,816,790.51|
||Including: USD|415,799.26||6.7744||2,816,790.51|
||Accounts Receivable|||||(1,316,749.70)|
||Including: HKD|22,344,682.27||0.8679||19,392,949.74|
||USD|(3,057,052.94)||6.7744||(20,709,699.44)|
||Other Receivables|||||599,710.86|
||Including: HKD|122,698.97||0.8679||106,490.44|
||Accounts Payable|72,806.51||6.7744||493,220.42|
||Including: HKD|3,104,958.40||0.8679||2,694,793.40|
||Other Payable|||||(857,378.38)|
||Including: HKD|(32,185.64)||0.8679||(27,933.92)|
||USD|(122,438.07)||6.7744||(829,444.46)|

 (VI) CHANGES IN CONSOLIDATION SCOPE
There is no change in consolidation scope during the year.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VII) EQUITY IN OTHER ENTITIES
1. Interests in subsidiaries
(1) Composition of the Group
Unit: RMB
|||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|
|||||Registered||Balance of other items|Proportion of ownership Interest (%)|||||
|||||Capital(in ten|Actual capital|substantively constituting||Indirect|Proportion of|||
||Principal place of|Place of|Nature of|thousand Yuan unless|contribution at the|net investments in the|Direct ownership|ownership|voting power|Consolidated||
|Full name of the subsidiary|business|incorporation|business|otherwise stated)|end of the period|subsidiary|interest|interest|(%)|or not|Approach of acquiring|
|Shenzhen Chiwan International Freight|Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|550.00|5,500,000.00|-|100.00|-|100.00|Y|Established throughinvestment|
|Agency Company Limited||||||||||||
||Hong Kong SAR, PRC|Hong Kong SAR, PRC|Investment|HKD 1,000,000.00|1,070,000.00|11,004,285.00|100.00|-|100.00|Y|Established throughinvestment|
|Chiwan Wharf Holdings (H.K.) Limited||||||||||||
|Dongguan Chiwan Wharf|Dongguan, PRC|Dongguan, PRC|Logistics supportservices|45,000.00|382,500,000.00|-|85.00|-|85.00|Y|Established throughinvestment|
|Company Limited||||||||||||
|Dongguan Chiwan Terminal|Dongguan, PRC|Dongguan, PRC|Logistics supportservices|40,000.00|400,000,000.00|-|100.00|-|100.00|Y|Established throughinvestment|
|Company Limited||||||||||||
||Hong Kong SAR, PRC|Hong Kong SAR, PRC|Investment|HKD 10,000.00|6,278,500.00|94,014,181.00|100.00|-|100.00|Y|Established throughinvestment|
|Hinwin Development Company Limited||||||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|28,820.00|250,920,000.00|-|100.00|-|100.00|Y|Combination involvingenterprises undercommon control|
|Shenzhen Chiwan Harbor Container||||||||||||
|Co., Ltd||||||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|1,500.00|7,000,000.00|-|100.00|-|100.00|Y|Combination involvingenterprises undercommon control|
|Shenzhen Chiwan Transportation||||||||||||
|Co., Ltd||||||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|USD 95,300,000.00|485,990,004.00|-|55.00|-|55.00|Y|Combination involvingenterprises undercommon control|
|Chiwan Container Terminal Co., Ltd||||||||||||
||Shenzhen, PRC|Shenzhen, PRC|Logistics supportservices|2,400.00|24,000,000.00|-|100.00|-|100.00|Y|Combination involvingenterprises undercommon control|
|Shenzhen Chiwan Shipping||||||||||||
|Transportation Co., Ltd.||||||||||||
||Hong Kong SAR, PRC|Hong Kong SAR, PRC|Logistics supportservices|HKD 800,000.00|856,000.00|-|100.00|-|100.00|Y|Combination involvingenterprises undercommon control|
|Chiwan Shipping (Hong Kong) Ltd.||||||||||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VII) EQUITY IN OTHER ENTITIES - continued
1. Interests in subsidiaries- continued
(2) Material non-wholly-owned subsidiaries
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Name of the subsidiary|||Proportion of ownership|Profit or loss attributableto minority shareholdersat the end of the period||Payments for dividends|Closing balance ofminority interest|
||||interest held by the|||to minority shareholders||
||Name of the subsidiary||minority shareholders|||in the current period||
||2017|||||||
||Dongguan Chiwan Wharf Company Limited|15%||6,549,369.92|-||121,612,422.30|
||Chiwan Container Terminal Co., Ltd|45%||37,287,926.70|-||850,230,794.94|
||Total|||43,837,296.62|-||971,843,217.24|
||2016|||||||
||Dongguan Chiwan Wharf Company Limited|15%||8,269,117.04|-||115,005,875.45|
||Chiwan Container Terminal Co., Ltd|45%||129,204,093.71|95,677,829.00||812,172,308.08|
||Total|||137,473,210.75|95,677,829.00||927,178,183.53|

 (3) Significant financial information of material non-wholly-owned subsidiaries
Unit: RMB
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of the subsidiary||Closing balance||||||||Opening balance|||||||
|||Current assets|Non-current assets|Total assets||Current||Non-current|Total liabilities|Current assets|Non-current assets|Total assets|Current liabilities||Non-current|Total liabilities|
||Name of the subsidiary|||||liabilities||liabilities|||||||liabilities||
||Dongguan Chiwan Wharf|66,924,257.63|1,045,030,059.16|1,111,954,316.79|290,999,718.48||24,441,054.54||315,440,773.02|27,675,293.15|1,027,159,564.62|1,054,834,857.77|277,814,404.40|24,550,555.38||302,364,959.78|
||Company Limited||||||||||||||||
|Chiwan Container Terminal Co., Ltd||576,471,800.96|1,537,406,810.66|2,113,878,611.62|156,473,119.70||68,003,725.40||224,476,845.10|389,403,217.21|1,575,821,422.22|1,965,224,639.43|87,814,329.79|72,582,958.32||160,397,288.11|

 Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Name of the subsidiary||Jan.-Jun. 2017||||||Jan.-Jun. 2016||||||
||||Jan.-Jun. 2017||||||Jan.-Jun. 2016|||||
|||Operating income||Net profit|Total comprehensive income||Cash flows from operating|Operating income||Net profit|Total comprehensive income||Cash flows from operating|
||Name of the subsidiary||||||activities||||||activities|
||Dongguan Chiwan Wharf|159,643,720.20||43,662,466.15|43,662,466.15|35,258,020.10||137,362,432.71||32,992,167.94|32,992,167.94|41,785,806.63||
||Company Limited|||||||||||||
|Chiwan Container Terminal Co., Ltd||326,262,590.52||82,862,059.33|82,862,059.33|190,279,725.34||374,877,558.79||140,636,274.86|140,636,274.86|164,272,446.41||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VII) EQUITY IN OTHER ENTITIES - continued
2. Interests in joint ventures and associates
(1) Material joint ventures or associates
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
|Investee|Principal|Place of|Nature of|Proportion of ownership||Proportion of voting power in the||Accounting method|
|||||interests held by the Group (%)||investee held by the Group (%)||of investments in|
||place of|||30 Jun. 2017|31 Dec. 2016|30 Jun. 2017|31 Dec. 2016|joint ventures and|
||business|incorporation|business|||||associates|
||Laizhou|Laizhou|Warehousingand logistics|40.00|40.00|40.00|40.00|Equity method|
|China Overseas Harbor Affairs|||||||||
|(Laizhou) Co., Ltd|||||||||
||Shenzhen|British Virgin Islands|Investments|50.00|50.00|50.00|50.00|Equity method|
|MPIL|||||||||

 (2) Financial information of material joint venture
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||China Overseas Harbor Affairs (Laizhou) Co., Ltd||||
||||30 Jun. 2017/||31 Dec. 2016/|
||||Jan.-Jun. 2017||Jan.-Jun. 2016|
||Current assets|400,211,214.81||472,412,233.11||
||Including: cash and cash equivalent|348,455,534.05||428,471,301.05||
||Non-current assets|1,573,625,586.20||1,746,234,554.37||
||Total assets|1,973,836,801.01||2,218,646,787.48||
||Current liabilities|241,883,098.17||60,897,644.03||
||Non-current liabilities|-||172,396,000.00||
||Total liabilities|241,883,098.17||233,293,644.03||
||Minority interests|1,385,120.46||974,119.24||
|Total equity attributable to shareholders ofthe parent company||1,730,568,582.38||1,984,379,024.21||
||Net assets calculated based on the proportion of|692,227,432.95||793,751,609.68||
||ownership interest|||||
||Adjustments|||||
||- Goodwill|-||-||
||- Unrealized Profits Resulting from Intragroup|-||-||
||Transactions|||||
||- Others|77,750,005.32||1,229,696.54||
||Carrying amounts of equity investments in Joint Venture|769,977,438.27||794,981,306.22||
||Operating income|198,791,298.68||205,506,077.48||
||Financial expenses|(2,636,003.23)||(1,208,317.13)||
||Tax expenses|25,348,743.97||17,586,815.81||
||Net profit|72,846,811.50||93,016,705.73||
||Other comprehensive income|-||-||
||Total comprehensive income|72,846,811.50||93,016,705.73||
||Dividends received from joint ventures|54,159,674.42||36,132,189.03||
||in the current year|||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VII) EQUITY IN OTHER ENTITIES- continued
2. Interests in joint ventures and associates - continued
(3) Financial information of material associates
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||MPIL||||
||||30 Jun. 2017/||31 Dec. 2016/|
||||Jan.-Jun. 2017||Jan.-Jun. 2016|
||Current assets|274,983,620.28||216,977,210.88||
||Including: cash and cash equivalent|175,748,639.85||160,156,678.41||
||Non-current assets|1,416,682,757.04||1,274,297,269.88||
||Total assets|1,691,666,377.32||1,491,274,480.76||
||Current liabilities|304,628,043.03||299,257,041.62||
||Non-current liabilities|6,677,923.17||4,031,799.53||
||Total liabilities|311,305,966.20||303,288,841.15||
||Minority interests|552,230,300.95||452,668,593.90||
|Total equity attributable to shareholders of the parent company||828,130,110.18||735,317,045.71||
||Net assets calculated based on the proportion|414,065,055.10||367,658,522.86||
||of ownership interest|||||
||Adjustments|||||
||- Goodwill|-||-||
||- Unrealized Profits Resulting from|-||-||
||Intragroup Transactions|||||
||- Others|(82,610,638.19)||(26,739,280.23)||
||Carrying amounts of equity investments in Joint Venture|331,454,416.91||340,919,242.63||
||Operating income|294,856,119.93||242,222,181.42||
||Financial expenses|3,533,766.50||8,015,452.44||
||Tax expenses|17,791,571.03||11,674,494.48||
||Net profit|84,676,438.72||53,437,416.76||
||Other comprehensive income|||-||
||Total comprehensive income|84,676,438.72||53,437,416.76||
||Dividends received from joint ventures in the current year|32,658,612.69||36,572,459.27||

 (4) Summarized financial information of immaterial associates
Unit: RMB
||||||
|-|-|-|-|-|
|||30 Jun. 2017/||30 Jun. 2016/|
|||Jan.-Jun. 2017||Jan.-Jun. 2016|
|Associates:|||||
|Total carrying amounts of investment|362,270,471.68||354,527,107.68||
|Aggregate of following items calculated based on|||||
|the proportion of ownership interest|||||
|- Net profit|7,743,364.01||9,421,228.34||
|- Other comprehensive income|-||-||
|- Total comprehensive income|7,743,364.01||9,421,228.34||

(5) As at 30 Jun. 2017, the long-term equity investments of the Group were not subject to
restriction on disposal or remittance of return on investments.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT
The Group's major financial instruments include Cash and bank balances, available-for-sale financial assets, borrowings, equity investments, account receivables, account payables, bond payables etc. Details of these financial instruments are disclosed in Note (V). The risks associated with these financial instruments and the policies on how to mitigate these risks are set out below. Management manages and monitors these exposures to ensure the risks are monitored at a certain level.
The Group adopts sensitivity analysis techniques to analyze how the entity's profit or loss and for the period and shareholders' equity would have been affected by changes in the relevant risk variables that were reasonably possible. As it is unlikely that risk variables will change in an isolated manner, and the interdependence between risk variables will have significant effect on the amount ultimately influenced by the changes in a single risk variable, the following items are based on the assumption that each risk variable has changes on a stand-alone basis.
1. Risk management objectives and policies
The Group's risk management objectives are to achieve proper balance between risks and yield, minimize the adverse impacts of risks on the Group's operation performance, and maximize the benefits of the shareholders and other equity investors. Based on these risk management objectives, the Group's basic risk management strategy is to identify and analyze the industry's exposure to various risks, establish appropriate bottom line for risk tolerance, implement risk management, and monitors these exposures to ensure the risks are monitored at a certain level. 1.1 Market risk
1.1.1 Currency risk
Currency risk is the risk that losses will occur because of changes in foreign exchange rates. The Group's exposure to the currency risk is primarily associated with USD and HKD. Several of the Group's subsidiaries have purchases and sales denominated in HKD while the Group's other principal activities are denominated and settled in RMB. As at 30 Jun. 2017, the balance of the Group's assets and liabilities are both denominated in functional currency, except that balance of assets set out below is in HKD and USD. Currency risk arising from the foreign currency balance of assets and liabilities may have impact on the Group's performance.
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Closing balance||Opening balance|
|Cash and bank balances|263,432,256.56||200,776,163.48||
|- HKD|19,722,326.34||25,539,100.17||
|- USD|243,709,930.22||175,237,063.31||
|Accounts receivable|(717,038.84)||26,594,259.65||
|- HKD|19,499,440.18||7,223,373.15||
|- USD|(20,216,479.02)||19,370,886.50||
|Short-term borrowings|-||-||
|- HKD|-||-||
|Accounts payable|1,837,415.02||2,183,342.35||
|- HKD|2,666,859.48||2,519,094.88||
|- USD|(829,444.46)||(335,752.53)||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VIII ) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.1 Currency risk - continued
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's currency risk exposures, to minimize the company's currency risk. According to the current risk exposure and judgment of the exchange rate movements, management considers the probable heavy loss resulted from foreign exchange rate fluctuation to be fairly low.
Sensitivity analysis on currency risk
The assumption for the sensitivity analysis on currency risk is that all the cash flow hedges and hedges of a net investment in a foreign operation are highly effective. On the basis of the above assumption, where all other variables are held constant, the reasonably possible changes in the foreign exchange rate may have the following pre-tax effect on the profit or loss for the period or equity:
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|Changes inexchange rate||Jan.-Jun. 2017||||Jan.-Jun. 2016|||
|||Effect onprofits|||Effect on|Effect onprofits|||Effect on|
||||||shareholders'||||shareholders'|
||||||equity||||equity|
|All foreign currencies|5% appreciationagainst RMB|13,043,890.14||13,043,890.14||8,645,464.36||8,645,464.36||
|All foreign currencies|5% depreciationagainst RMB|(13,043,890.14)||(13,043,890.14)||(8,645,464.36)||(8,645,464.36)||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.3 Other price risk
Available-for-sale financial assets are measured at fair value by the Group at the balance sheet date. Hence the Group takes risk of changes in the securities market. The Group closely monitors the effects of changes in the foreign exchange prices on the Group's equity investment securities. The Group has not taken any measures to reduce prices risk of equity investment securities. 1.2 Credit risk
As at 30 Jun. 2017, the Group's maximum exposure to credit risk which will cause a financial loss to the Group due to failure to discharge an obligation by the counterparties and financial guarantees issued by the Group is arising from the carrying amount of the respective recognized financial assets as stated in the consolidated balance sheet. For financial instruments measured at fair value, the carrying amount reflects the exposure to risks but not the maximum exposure to risks; the maximum exposure to risks would vary according to the future changes in fair value. In order to minimize the credit risk, the Group has delegated a team responsible for determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at each balance sheet date to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the management of the Group considers that the Group's credit risk is significantly reduced.
The credit risk on liquid funds is limited because the counterparties are banks with high credit ratings.
The Company adopted necessary policies to make sure that all clients and customers are attributed with merit credit records.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(VIII) FINANCIAL INSTRUMENTS AND RISK MANAGEMENT - continued
1. Risk management objectives and policies - continued
1.3 Liquidity risk
In the management of the liquidity risk, the Group monitors and maintains a level of cash and cash equivalents deemed adequate by the management to finance the Group's operations and mitigate the effects of fluctuations in cash flows. The management monitors the utilization of bank borrowings and ensures compliance with loan covenants.
The following is the maturity analysis for financial assets and financial liabilities held by the Group which is based on undiscounted remaining contractual obligations:
Unit: RMB
|||||||||
|-|-|-|-|-|-|-|-|
|Item||Carrying amount|Total amount|Within one year|1-5 years||More than 5|
||||||||years|
||The non-derivative financial assets|||||||
||Cash and bank balances|593,542,501.41|593,542,501.41|593,542,501.41|-|-||
||Accounts receivable|243,504,003.91|243,504,003.91|243,504,003.91|-|-||
||Interest receivable|1,264,914.26|1,264,914.26|1,264,914.26||||
||Other receivables|18,699,162.98|18,699,162.98|18,699,162.98|-|-||
||Available-for-sale financial|23,709,200.00|23,709,200.00|23,709,200.00|-|-||
||assets|||||||
||The non-derivative financial liabilities|||||||
||Accounts payable|98,590,197.10|98,590,197.10|98,590,197.10|-|-||
||Interest payable|6,371,260.30|6,371,260.30|6,371,260.30|-|-||
||Dividends payable|319,802,810.47|319,802,810.47|319,802,810.47|-|-||
||Other payable|75,105,519.60|75,105,519.60|75,105,519.60|-|-||
||Bonds payable|298,629,041.09|298,629,041.09|-|298,629,041.09|-||

 (IX) FAIR VALUE
1. Closing balance of assets and liabilities measured at fair value
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|||Closing Balance|||||||
||Item||Level 1||Level 2||Level 3||Total|
||Measurements at fair value continuously|||||||||
||Available-for-sale financial assets:|9,800,000.00||-||-||9,800,000.00||
||- Equity instruments (Note)|9,800,000.00||-||-||9,800,000.00||
||Total assets measured at fair value continuously|9,800,000.00||-||-||9,800,000.00||

 Note: The available-for-sale financial assets held by the Company represent the fair value of the circulating shares of Jiang Su Ninghu Expressway Company Ltd at the end of the year.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(IX) FAIR VALUE - continued
2. Basis for determining the market price measured at fair value at level I continuously The market price of assets and liabilities measured at fair value at level I continuously is determined by the Shanghai stock exchange closing price of equity instruments at 30 Jun. 2017. 3. Information of financial assets and financial liabilities that are not measured at fair value The management considers that the carrying amount of financial assets and liabilities measured at amortized cost is approximately equal to the fair value of financial assets and liabilities. (X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Unit: RMB
||||||||||
|-|-|-|-|-|-|-|-|-|
||||||||Proportion of the||
||||||||entity's ownership|Proportion of the entity's|
||Related party|Type of the|Place of|Legal|Nature of||interests held by the|voting power held by the|
|Name of the parent|relationship|entity|incorporation|representative|business|Issued share capital|parent (%)|parent (%)|
||Parent company|Listed in HongKong|Hong Kong|Li Xiao Peng|Port shipping|HKD34,766,421,285|-|66.10(Note)|
|CMHI|||||||||

Note: CMHI obtained8.58% equity of the Company via its subsidiary Jing Feng Company,25% equity via its subsidiaries Shenzhen Malai Warehouse Co., Ltd., and obtained another32.52% equity by entrustment of Nanshan Group's stock, totally holding66.10% of the voting shares, so CMHI is the parent company of the Company.
2. Subsidiaries of the Company
The general background and other related information of the subsidiaries are set out in Note (VII) 1.
3. Associates and joint ventures of the Company
The general background and other related information of the associates and joint ventures are set out in Note (VII) 2.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
4. Other related parties of the Company
|||
|-|-|
||Relationships between other related|
|Name of other related parties|parties and the Company|
|Shenzhen Haiqin Engineering Management Co., Ltd. (Haiqin Engineering)|Controlled by the same parent company|
|SMT|Controlled by the same parent company|
|SMP|Controlled by the same parent company|
|China Merchants Port Services (Shenzhen) Co., Ltd ("CMPS")|Controlled by the same parent company|
|Shekou Container Terminals Limited ("SCT")|Controlled by the same parent company|
|Shenzhen Haixing Harbor Development Co.,Ltd("Haixing")|Controlled by the same parent company|
|Shenzhen Huxing Tug Service Co., Ltd.("Huxing Tug")|Controlled by the same parent company|
|Shenzhen Lianda Tug Service Co., Ltd.("Lianda Tug")|Controlled by the same parent company|
|Malai Warehouse|Controlled by the same parent company|
|China Merchants Container Services Ltd.("China Merchants Container")|Controlled by the same parent company|
|SMW|Controlled by the same parent company|
|Hidoney|Controlled by the same parent company|
|Shenzhen China Merchants Qianhaiwan Property Co., Ltd. ("Qianhai Property")|Controlled by the same parent company|
|China Merchants International Cold Chain (Shenzhen) Co., Ltd ("CMCCL")|Controlled by the same ultimate actual controller|
|Ocean Shipping Agency|Controlled by the same ultimate actual controller|
|Shenzhen China Merchants Shangzhi Investment Co., Ltd.("China Merchants Shangzhi ")|Controlled by the same ultimate actual controller|
|Shenzhen China Merchants International Shipping Agency Co., Ltd.("Shipping Agency")|Controlled by the same ultimate actual controller|
|Youlian Shipyard (Shekou) Co. Ltd.("Youlian Shipyard")|Controlled by the same ultimate actual controller|
|Shenzhen China Merchants Property Management Co., Ltd.("China Merchants Property")|Controlled by the same ultimate actual controller|
|Guangzhou International Ocean Shipping Agency Co., Ltd. ("International Ocean|Controlled by the same ultimate actual controller|
|Shipping")||
|China Ocean Shipping Tally Shenzhen Co., Ltd. ("Ocean Shipping Tally")|Controlled by the same ultimate actual controller|
|China Merchants Houlder Insurance Co., Ltd. ("Houlder Insurance")|Controlled by the same ultimate actual controller|
|Hoi Tung (Shanghai) Co., Ltd.|Controlled by the same ultimate actual controller|
|Hoi Tung (Shenzhen) Co., Ltd.|Controlled by the same ultimate actual controller|
|Sheanzhen South China Liquefied Gas Marine Co., Ltd.(South China Liquefied Gas)|Controlled by the same ultimate actual controller|
|China Marine Shipping Agency, Shenzhen Co., Ltd. ("CMSA") (Note)|Controlled by the same ultimate actual controller|
|Sinoway Shipping Ltd. ("Sinoway") (Note)|Controlled by the same ultimate actual controller|
|China Merchants Heavy Industry Shenzhen Co., Ltd. ("CMHI")|Controlled by the same ultimate actual controller|
|Shenzhen Chiwan Petroleum Supply Base Co., Ltd.("Chiwan Base ")|Influenced significantly by parent company|
|Zengcheng Xinkang property Co., Ltd.("Zengcheng Xinkang")|Influenced significantly by parent company|
|Shenzhen Baowan international logistics Co., Ltd.("Baowan Logistics")|Influenced significantly by parent company|
|Shenzhen Chiwan Property Management Co., Ltd.("Chiwan Property")|Influenced significantly by parent company|
|Shenzhen Xuqin Industrial Development Co., Ltd.(“Xuqin”)|Influenced significantly by parent company|
|Shenzhen Chiwan Oriental Logistics Co., Ltd.("Chiwan Oriental Logistics")|Influenced significantly by parent company|
|CDFC|Influenced significantly by parent company|
||Invetsor that has significant influence on thecompany|
|Nanshan Group||
||Influenced significantly by the ultimate actualcontroller|
|China Merchant Bank Co., Ltd.("CMB")||

Note: On 28 December 2015, State-owned Assets Supervision and Administration
Commission("SASAC") released an approval to transferSinotrans&CSC Holdings Co., Ltd.("Sinotrans& CSC"), as a whole, into China Merchants Group Co., Ltd .("CMG") for free. On 24 Februrary 2016, SASAC confirmed that CMG is the controller shareholder of
Sinotrans& CSC. Therefore, the Company included the subsidiaries ofSinotrans& SCS,
CMSA and Sinoway as its related parties since 24 February 2016.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions
(1) Provision and receipt of services
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and decision-|||
||Content of related party|making procedures of|||
|Related parties|transaction|related party transactions|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Receipt of services :|||||
|Haixing|Load and unload service|Negotiation|1,700,226.46|2,050,908.52|
|Sinotrans Shenzhen Marine Shipping Agency Co., Ltd. (“SSMSA”)|Technical service fee|Negotiation|1,976,679.00|1,747,860.00|
|China Merchants Holdings (International) Information Technology Company Ltd|Technical service fee|Negotiation|1,074,056.62|1,138,679.23|
||Property managementservice|Negotiation|1,022,057.59|925,553.89|
|Chiwan Property|||||
|SMT|Load and unload service|Negotiation|748,800.00|556,560.00|
||Property managementservice|Negotiation|159,666.73|393,625.32|
|Zengcheng Xinkang|||||
|Xuqin|Landscape Engineering|Negotiation|422,920.75|311,998.48|
|SMW|Load and unload service|Negotiation|1,159,412.08|250,330.19|
|CMBL|Load and unload service|Negotiation|1,003,449.45|243,745.29|
|Ocean Shipping Agency|Agency service|Negotiation|250,650.00|243,675.00|
|Lianda Tug|Tugboat service|Negotiation|203,305.19|163,684.43|
|Sinotrans Dongguan Logistics Co., Ltd. (“SDL”)|logistics service|Negotiation|-|163,633.97|
|Haiqin Engineering|Project management|Negotiation|1,694,536.21|138,578.13|
||Property managementservice|Negotiation|1,153,153.32|125,089.30|
|China Merchants Property|||||
|SMP|Load and unload service|Negotiation|63,533.89|97,000.75|
|SCT|Trailer service etc.|Negotiation|2,273,719.92|69,056.60|
|Total|||14,906,167.21|8,619,979.10|
|Rendering of services:|||||
|SCT|Trailer service etc.|Negotiation|7,339,564.71|7,206,689.95|
|Ocean Shipping Agency|Tugboat service|Negotiation|7,224,052.83|5,885,342.17|
|SMT|Trailer service etc.|Negotiation|8,728,097.72|5,873,774.53|
|SMP|Tugboat service|Negotiation|2,910,447.25|3,490,884.45|
|Sinotrans Shenzhen Marine Shipping Agency Co., Ltd. (“SSMSA”)|Trailer service etc|Negotiation|1,697,221.51|1,981,700.67|
|Shipping Agency|Trailer service etc.|Negotiation|1,537,334.91|1,283,371.50|
|China Overseas Harbour Affairs (Laizhou) Co., Ltd|Labor dispatch service|Negotiation|-|736,553.60|
|International Ocean Shipping|Berthage fee|Negotiation|455,734.78|417,729.46|
|Lianda Tug|Tugboat service|Negotiation|280,898.54|268,439.64|
|Youlian Shipyard|Tugboat service|Negotiation|228,868.87|121,635.85|
|CMCCL|Trailer service|Negotiation|-|118,620.75|
|CMBL|Trailer service|Negotiation|-|39,004.71|
|Ocean Shipping Tally|Others|Negotiation|-|32,233.58|
|Sinoway Shipping Ltd. (“Sinoway Shipping”)|Load and unload service|Negotiation|35,252.88|31,055.44|
|China Marine Shipping Agency Guangdong Co., Ltd. (“CMSA Guangdong”)|Load and unload service|Negotiation|-|28,296.23|
|Zengcheng Xinkang|Others|Negotiation|1,820.31|2,701.97|
|COFCO & CM (Shenzhen) Grain Electronic Trading Center|Load and unload service|Negotiation|627,197.62|-|
|China Merchants Heavy Industry Shenzhen Co., Ltd. ("CMHI")|Tugboat service|Negotiation|16,796.23|-|
|Sinotrans Shenzhen Logistics Co., Ltd.|Others|Negotiation|10,787.74|-|
|Sinotrans Shenzhen Customs Broker Co., Ltd|Others|Negotiation|7,287.74|-|
|Total|||31,101,363.64|27,518,034.50|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
5. Related party transactions - continued
(2) Leases with related parties
The Group as the lessor:
Unit: RMB
|||||
|-|-|-|-|
|||Lease income|Lease income|
|||recognised in the|recognised in the|
|Name of lessee|Type of leased assets|current year|previous year|
|CMBL|Crane|932,038.83|932,038.86|
|Total||932,038.83|932,038.86|

 The Group as the lessee:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Name of lessor||Type of leased assets|Lease paymentrecognised inthe current year||Lease paymentrecognised inthe previousyear|
||Name of lessor|||||
||Nanshan Group|Land, Office and packing yard|35,087,942.41|32,410,191.19||
||Malai Warehouse|Office|4,960,034.15|4,642,399.87||
||Chiwan Base|Office|772,310.94|2,706,819.39||
||CMPS|Former Bay port lands|1,634,130.06|1,584,900.00||
||China Merchants Shangzhi|Buildings|725,718.42|377,448.18||
||Qianhai Property|Staff dormitory|-|108,696.18||
||Baowan Logistics|Warehouse|54,182.99|42,400.76||
||SCT|Crane|-|401,285.71||
||SMW|Warehouse|384,863.11|-||
||Total||43,619,182.08|42,274,141.28||

 (3) Transfers of assets involved with related parties
Unit: RMB
|||||
|-|-|-|-|
|related party|Related trade|Jan.-Jun. 2017|Jan.-Jun. 2016|
||Transfer-out of empty forklifts andcomputers|-|129,227.69|
|SMW||||

(4) Compensation for key management personnel
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Compensation for key management personnel|4,641,702.52|4,504,067.50|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties
Unit: RMB
|||||
|-|-|-|-|
|Item|Related parties|Closing balance|Opening balance|
|Cash and bank|CMB|227,204,466.31|244,449,550.95|
||China Development Finance Company LTD.|205,769.88|1,211,887.57|
||Total|227,410,236.19|245,661,438.52|
|Accounts receivable|SCT|1,433,780.90|29,340.00|
||Ocean Shipping Agency|3,387,002.00|2,138,014.00|
||SMT|2,156,746.56|1,097,931.17|
||SSMSA|388,366.40|568,815.80|
||SMP|597,218.76|278,192.54|
||Shipping Agency|582,697.00|390,704.00|
||Sinoway|19,085.00|24,588.00|
||CMBL|11,160.00|-|
||International Ocean Shipping|53,902.00|-|
||Total|8,629,958.62|4,527,585.51|
|Other receivables|SMP|282,027.61|1,366,290.52|
||SMT|669,136.63|870,864.34|
||CMBL|2,180,743.58|2,437,813.73|
||Nanshan Group|3,175,200.09|1,054,300.09|
||SCT|278,748.50|16,994.00|
||Qianhai Property|704,172.00|654,480.00|
||Xuqin|3,000.00|323,000.00|
||China Merchants Shangzhi|176,299.20|176,299.20|
||Chiwan Base|135,621.91|135,621.91|
||China Merchants Property|-|5,294.00|
||COLOMBO International Container|129,070.78|-|
||Others|62,809.00|62,809.00|
||Total|7,796,829.30|7,103,766.79|
|Accounts payable|Nanshan Group|14,629,308.23|10,090,213.25|
||Haixing|515,946.00|575,625.00|
||SSMSA|892,138.71|743,962.71|
||Xuqin|702,412.35|793,251.50|
||SCT|401,415.00|-|
||China Merchants Holdings Company Ltd|99,675.65|99,675.65|
||China Merchants Holdings (International)Information Technology Company Ltd.|29,000.00|-|
||Zengcheng Xinkang|-|207,845.50|
||CMPS|839,997.00|-|
||Hoi Tung (Shanghai) Company Limited|-|188,945.00|
||Chiwan Base|139,400.00|-|
||Total|18,249,292.94|12,699,518.61|
|Dividends payable|Nanshan Group|104,004,785.23|-|
||Malai Warehouse|79,950,702.77|-|
||Total|183,955,488.00|-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS - continued
6. Amounts due from/to related parties - continued
Unit: RMB
|||||
|-|-|-|-|
|Item|Related parties|Closing balance|Opening balance|
|Other payables|SMT|2,109,987.55|5,173,198.89|
||SMP|1,325,496.73|647,066.08|
||China Merchants Holdings (International)Information Technology Company Ltd.|815,800.00|42,900.00|
||CMPS|839,997.00|-|
||Chiwan Base|689,477.50|-|
||China Merchants Shangzhi|1,057,795.20|117,532.80|
||Nanshan Group|193,487.63|155,593.03|
||SCT|133,980.95|247,360.66|
||Haiqin Engineering|742,184.61|389,509.73|
||Chiwan Property|62,264.92|14,100.90|
||China Merchants Group|8,570.12|-|
||China Merchants Property|-|3,626.34|
||Xuqin|67,426.00|51,624.65|
||International Ocean Shipping|10,000.00|10,000.00|
||Qianhai Property|327,240.00|-|
||Total|6,854,233.71|6,852,513.08|

 (XI) COMMITMENTS AND CONTINGENCIES
1. Significant commitments
(1) Capital commitments
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Capital commitments that have been entered into but have not|||
|been recognised in the financial statements:|||
|- Commitment for acquisition of long-term assets|110,517,815.86|151,991,708.93|
|-Commitment for foreign investment|56,136,194.00|56,136,194.00|
|Total|166,654,009.86|208,127,902.93|

 (2) Operating lease commitments
As of the balance sheet date, the Group had the following commitments in respect of non- cancellable operating leases:
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Minimum lease payments under non-cancellable|||
|operating leases:|||
|1st year subsequent to the balance sheet date|60,436,842.46|58,325,261.82|
|2nd year subsequent to the balance sheet date|28,923,889.60|54,599,108.85|
|3rd year subsequent to the balance sheet date|386,662.62|656,227.25|
|More than 3 years|323,171.29|-|
|Total|90,070,565.96|113,580,597.92|

2. Contingencies
No material contingencies that should be disclosed by the Group.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XII) EVENTS AFTER THE BALANCE SHEET
1. Profit appropriation
Unit: RMB
|||
|-|-|
|Item|Amount|
|Proposed distribution of profits or dividends (Note)|319,802,810.08|

 Note: Please refer to Note (V) 39.
(XIII) OTHER SIGNIFICANT EVENTS
1. Annuity plan
On 3 June 2008, the Group participated in the enterprise annuity plan of Nanshan Group approved by Shenzhen government. Funds involved were deposited in the managed account coordinated by Nanshan Group. Staffs would be qualified to participant the annuity plan if the following requirements are met:
(i)Staff with labor contracts signed. (ii)Staff with basic pension participated in.
(iii)On-the job and in-service staff with probation expired. (iv)Voluntarily participated in the plan and perform the obligation of payment. The Group and staffs share the payment of the supplementary pension. Excess payment would not be allowed so as to keep the payment made by the Group and total payment made by the Group and the individual under the limit of one-twelfth and the one-sixth of the prior year's gross payroll respectively.
2. Segment reporting
(1) Basis for determining and accounting treatments of reporting segments
Subject to the Group's in-house infrastructure, management requirements and internal reporting system, the operation businesses of the Group are classified into four business segments. The Group's management periodically evaluates the operating results of these segments to make decisions about resources to be allocated to the segments and assess their performance. On the basis of such business segments, the Group determined three reporting segments including load and unload services, trailer and tugboat business, agency services and other segments, which are classified based on the nature of business. Major products and services delivered or provided by each of the reporting segments are load and unload services, trailer and tugboat business, agency services and other segments.
Segment information is disclosed in accordance with the accounting policies and measurement standards adopted by each segment when reporting to management. The measurement basis is consistent with the accounting and measurement basis in the preparation of the financial statements.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting - continued
(2) Segment financial information
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Load and unload services||Trailer and tugboat business||Agency and other services||Unappropriated items||Inter-segment deduction||Total||
|||Jan.-Jun. 2017|Jan.-Jun. 2016|Jan.-Jun. 2017|Jan.-Jun. 2016|Jan.-Jun. 2017|Jan.-Jun. 2016|Jan.-Jun. 2017|Jan.-Jun. 2016|Jan.-Jun. 2017|Jan.-Jun. 2016|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Operating income||||||||||||||
||Revenue arising from external|865,384,374.34|844,465,634.31|49,878,666.71|46,615,750.31|14,345,457.86|13,728,267.62|-|-|-|-|929,608,498.91|904,809,652.24|
||transactions|||||||||||||
||Revenue arising from inter-segment|-|-|33,158,187.84|30,707,142.71|-|-|-|-|(33,158,187.84)|(30,707,142.71)|-|-|
||transactions|||||||||||||
||Total segment operating income|865,384,374.34|844,465,634.31|83,036,854.55|77,322,893.02|14,345,457.86|13,728,267.62|-|-|(33,158,187.84)|(30,707,142.71)|929,608,498.91|904,809,652.24|
|Reconciling items:||||||||||||||
|Operating Income in the financial statements||||||||||||929,608,498.91|904,809,652.24|
|Operating cost||497,194,719.83|458,877,279.34|61,369,223.59|56,538,338.80|10,551,079.86|7,450,049.16|-|-|(33,142,187.82)|(30,707,142.71)|535,972,835.46|492,158,524.59|
|Segment operating profits||368,189,654.51|385,588,354.97|21,667,630.96|20,784,554.22|3,794,378.00|6,278,218.46|-|-|(16,000.02)|-|393,635,663.45|412,651,127.65|
|Reconciling items:||||||||||||||
|Business taxes and surcharges||4,261,580.04|2,081,550.23|108,304.02|125,688.62|9,377.58|685,817.25|-|-|720,507.38|274,886.31|5,099,769.02|3,167,942.41|
|Administrative expenses||52,148,830.54|57,605,219.02|5,921,650.84|6,952,748.64|2,375,212.07|3,001,025.95|11,879,037.73|14,388,875.10|-|-|72,324,731.18|81,947,868.71|
|Financial expenses||9,957,541.29|6,084,491.80|(762,020.47)|(760,243.01)|198,656.84|(561,181.41)|758,211.16|9,490,546.97|-|-|10,152,388.82|14,253,614.35|
|Impairment losses of assets||(1,710,539.31)|288,044.16|(197,700.00)|-|-|-|-|-|-|-|(1,908,239.31)|288,044.16|
|Investment Income||-|-|-|-|-|-|302,202,787.63|301,993,086.59|(232,692,830.18)|(232,692,830.18)|69,509,957.45|69,300,256.41|
|Operating profit||303,532,241.95|319,529,049.76|16,597,396.57|14,466,359.97|1,211,131.51|3,152,556.67|289,565,538.74|278,113,664.52|(233,429,337.58)|(232,967,716.49)|377,476,971.19|382,293,914.43|
|Non-operating income||2,295,857.98|2,488,565.79|111,358.31|120,000.02|-|30,648.00|-|-|-|-|2,407,216.29|2,639,213.81|
|Non-operating expenses||224,356.40|500,603.63|518,267.96|862.00|-|-|-|-|-|-|742,624.36|501,465.63|
|Gross profit||305,603,743.53|321,517,011.92|16,190,486.92|14,585,497.99|1,211,131.51|3,183,204.67|289,565,538.74|278,113,664.52|(233,429,337.58)|(232,967,716.49)|379,141,563.12|384,431,662.61|
|Income tax expenses||53,152,811.68|44,125,732.88|4,047,621.74|3,646,374.51|63,069.75|44,766.77|1,632,930.63|1,844,132.60|-|-|58,896,433.80|49,661,006.76|
|Net profit||252,450,931.85|277,391,279.04|12,142,865.18|10,939,123.48|1,148,061.76|3,138,437.90|287,932,608.11|276,269,531.92|(233,429,337.58)|(232,967,716.49)|320,245,129.32|334,770,655.85|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting - continued
(2) Segment financial information - continued
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Load and unload services||Trailer and tugboat business||Agency and other services|||Unappropriated items||Inter-segment deduction||Total||
||||||||Agency and other services||||||||
|||Jan.-Jun. 2017|Jan.-Jun. 2016|Jan.-Jun. 2017|Jan.-Jun. 2016||Jan.-Jun.|Jan.-Jun. 2016|Jan.-Jun. 2017|Jan.-Jun. 2016|Jan.-Jun. 2017|Jan.-Jun. 2016|Jan.-Jun. 2017|Jan.-Jun. 2016|
||||||||2017||||||||
|Total segment assets||7,963,065,099.65|5,430,595,832.96|214,437,576.01|210,588,801.07|23,106,697.18||36,184,102.36|6,633,151,638.01|7,535,075,833.13|(8,049,339,462.32)|(6,585,683,289.43)|6,784,421,548.53|6,626,761,280.09|
||Total assets in the financial|7,963,065,099.65|5,430,595,832.96|214,437,576.01|210,588,801.07|23,106,697.18||36,184,102.36|6,633,151,638.01|7,535,075,833.13|(8,049,339,462.32)|(6,585,683,289.43)|6,784,421,548.53|6,626,761,280.09|
||statements||||||||||||||
||Total segment liabilities|2,334,819,894.52|1,470,340,168.48|116,970,014.74|114,510,739.19|12,669,458.57||26,199,615.99|170,616,779.95|1,764,787,576.27|(1,493,872,754.35)|(2,052,120,486.34)|1,141,203,393.43|1,323,717,613.59|
||Total liabilities in the financial|2,334,819,894.52|1,470,340,168.48|116,970,014.74|114,510,739.19|12,669,458.57||26,199,615.99|170,616,779.95|1,764,787,576.27|(1,493,872,754.35)|(2,052,120,486.34)|1,141,203,393.43|1,323,717,613.59|
||statements||||||||||||||
|Supplementary information|||||||||||||||
|Depreciation||89,519,119.36|91,078,964.84|5,890,089.17|5,890,089.17|316,828.10||316,828.10|83,115.21|83,115.21|-|-|95,809,151.84|97,368,997.32|
|Amortization||19,618,097.53|20,121,115.31|-|8,748.12|-||-|157,175.70|142,659.36|-|-|19,775,273.23|20,272,522.79|
|Interest income||14,654,057.22|1,173,650.03|212,306.96|210,552.90|6,467.63||403,115.28|21,265,871.78|(4,195,616.76)|(31,952,107.51)|5,803,954.29|4,186,596.08|3,395,655.74|
|Interest expense||11,621,275.13|(5,924,339.39)|-|(65,254.86)|-||-|11,652,818.46|21,970,301.28|(13,429,185.26)|5,803,954.29|9,844,908.33|21,784,661.32|
||Investment income from|-|-|-|-|-||-|60,092,957.45|63,008,068.56|-|-|60,092,957.45|63,008,068.56|
||long-term equity investment||||||||||||||
||under equity method||||||||||||||
||Long-term equity investment|-|-|-|-|-||-|1,463,702,326.87|1,439,244,037.52|-|-|1,463,702,326.87|1,439,244,037.52|
||under equity method||||||||||||||
||Non-current assets other than|4,311,287,038.27|4,303,834,271.18|117,493,640.22|120,159,617.69|84,470.81||16,188,638.70|307,839,267.10|180,875,139.97|(312,845,278.50)|(162,765,586.89)|4,423,859,137.90|4,458,292,080.65|
||long-term equity investment||||||||||||||

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting– continued
(3) Segment revenue from external transactions by source and non-current assets by geographical location
Unit: RMB
||||||
|-|-|-|-|-|
|Item||Jan.-Jun. 2017||Jan.-Jun. 2016|
|Revenue from external transactions with domestic customers|917,481,142.33||903,301,572.23||
|Revenue from external transactions with Hong Kong customers|12,127,356.58||1,508,080.01||
|Total|929,608,498.91||904,809,652.24||

 Unit: RMB
||||||
|-|-|-|-|-|
|Item||Jan.-Jun. 2017||Jan.-Jun. 2016|
|Non-current assets sourced from Mainland of PRC|4,387,973,511.00||4,433,998,794.69||
|Non-current assets sourced from Hong Kong|4,093.43||6,850.61||
|Total|4,387,977,604.43||4,434,005,645.30||

 (4) Degree of reliance on major customers
The total operating income derived from the top five clients of the Group is RMB377,015,687.69 , occupying40.56% of the Group's total operating income.
(XIV) NOTES TO THE KEY ITEMS IN THECOMPANY’S FINANCIAL STATEMENTS 1. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: RMB
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Category|||Closing balance||||||||Opening balance|||||||||
||||Carrying amount balance||||Bad debt provision|||Carrying value||Carrying amount balance||||Bad debt provision|||Carrying value|
|||Amount|||Proportion|Amount|||Proportion||Amount|||Proportion(%)|Amount|||Proportion||
||Category||||(%)||||(%)|||||||||(%)||
||Accounts|-||-||-||-||-|-||-||-||-||-|
||receivable that are|||||||||||||||||||
||individually|||||||||||||||||||
||significant and for|||||||||||||||||||
||which bad debt|||||||||||||||||||
||provision has|||||||||||||||||||
||been assessed|||||||||||||||||||
||individually|||||||||||||||||||
||Accounts receivable for which bad debt provision has been assessed by credit risk portfolios|||||||||||||||||||
|Portfolio 1||2,262,003.80||9.36||-||-||2,262,003.80|63,999.00||0.43||-||-||63,999.00|
||Portfolio 2|21,899,519.44||90.64||-||-||21,899,519.44|14,666,413.29||99.57||-||-||14,666,413.29|
||Subtotal of|24,161,523.24||100.00||-||-||24,161,523.24|14,730,412.29||100.00||-||-||14,730,412.29|
||portfolios|||||||||||||||||||
||Accounts|-||-||-||-||-|-||-||-||-||-|
||receivable that are|||||||||||||||||||
||not individually|||||||||||||||||||
||significant but for|||||||||||||||||||
||which bad debt|||||||||||||||||||
||provision has|||||||||||||||||||
||been assessed|||||||||||||||||||
||individually|||||||||||||||||||
||Total|24,161,523.24||100.00||-||-||24,161,523.24|14,730,412.29||100.00||-||-||14,730,412.29|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIV) NOTES TO THE KEY ITEMS IN THECOMPANY’S FINANCIAL STATEMENTS - continued
1. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued
Accounts receivable portfolios for which bad debt provision has been assessed using the aging analysis approach:
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging||Closing balance|||||||Opening balance||||||
||||Closing balance||||||||||||
||||Carrying||Bad debt||Proportion|Carrying value||Carrying amount|Bad debt||Proportion|Carrying value|
||Aging||amount balance||provision||(%)|||balance|provision||(%)||
||Within 1 year|21,899,519.44||-||-||21,899,519.44|14,666,413.29||-|-||14,666,413.29|

 (2) Top five balances of accounts receivable classified by debtor:
Unit: RMB
||||||||
|-|-|-|-|-|-|-|
|Name of entity||Relationshipwith theCompany|Closing balance|r|Proportion of|Closing balanceof bad debtprovision|
||||||the closing||
||||||balance to the||
||||||total accounts||
||Name of entity||||eceivable (%)||
||Customer F|Customer|7,358,127.15|30.45||-|
||Customer G|Customer|6,188,829.45|25.61||-|
||Customer H|Customer|2,763,000.00|11.44||-|
||Customer I|Customer|2,000,000.00|8.28||-|
||Customer J|Customer|1,512,486.82|6.26||-|
||Total||19,822,443.42|82.04||-|

 2. Other receivables
(1) Disclosure of other receivables by categories
Unit: RMB
|||||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Category||Closing balance|||||||||Opening balance|||||||||
|||Carrying amount balance||||Bad debt provision||||BCarrying value|Carrying amount balance||||Bad debt provision||||BCarrying value|
||||Carrying amount balance||||Bad debt provision|||||Carrying amount balance||||Bad debt provision||||
|||Amount|||Proportion|Amount|||Proporti||Amount|||Proportion|Amount|||Proportion||
||Category||||(%)||||on (%)|||Amount||(%)||||(%)||
||Other receivables that are|-||-||-||-||-|-||-||-||-||-|
||individually significant and for|||||||||||||||||||
||which bad debt provision has been|||||||||||||||||||
||assessed individually|||||||||||||||||||
||Other receivables for which bad debt provision has been assessed by credit risk portfolios|||||||||||||||||||
||Portfolio 1|562,507,733.83||99.70||-||-||562,507,733.83|581,387,532.80||99.75||-||-||581,387,532.80|
||Portfolio 2|1,664,768.65||0.30||383,456.60||23.03||1,281,312.05|1,455,758.02||0.25||391,186.82||26.87||1,064,571.20|
||Subtotal of portfolios|564,172,502.48||100.00||383,456.60||0.07||563,789,045.88|582,843,290.82||100.00||391,186.82||0.07||582,452,104.00|
||Other receivables that are not|-||-||-||-||-|-||-||-||-||-|
||individually significant but for|||||||||||||||||||
||which bad debt provision has been|||||||||||||||||||
||assessed individually|||||||||||||||||||
||Total|564,172,502.48||100.00||383,456.60||0.07||563,789,045.88|582,843,290.82||100.00||391,186.82||0.07||582,452,104.00|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIV) NOTES TO THE KEY ITEMS IN THECOMPANY’S FINANCIAL STATEMENTS - continued
2. Other receivables - continued
(1) Disclosure of other receivables by categories - continued
Other receivables portfolios for which bad debt provision has been assessed using the aging analysis
Unit: RMB
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Aging|||Closing balance|||||||Opening balance|||||||
||||Carrying||Bad debt||Proportion||Carrying|Carrying||Bad debt||Proportion||Carrying|
||Aging||amount balance||provision||(%)||value|amount balance||provision||(%)||value|
||Within 1 year|1,281,312.05||-||-||1,281,312.05||1,034,396.62|149.26||0.01||1,034,247.36||
|n|More than 1 year but|-||-||-||-||37,904.80|7,580.96||20.00||30,323.84||
||ot exceeding 2 years||||||||||||||||
||More than 2 years but|-||-||-||-||-|-||-||-||
||not exceeding 3 years||||||||||||||||
||More than 3 years|383,456.60||383,456.60||100.00||-||383,456.60|383,456.60||100.00||-||
|T|otal|1,664,768.65||383,456.60||23.03||1,281,312.05||1,455,758.02|391,186.82||26.87||1,064,571.20||

 (2) Disclosure of other receivables by nature
Unit: RMB
||||
|-|-|-|
|Item|Closing balance|Opening balance|
|Temporary payments|5,205,270.86|2,095,061.81|
|Deposits|479,634.90|306,791.32|
|Others|558,487,596.72|580,441,437.69|
|Including: amounts due from subsidiaries|552,166,847.60|580,057,981.09|
|Total|564,172,502.48|582,843,290.82|

 (3) Top five balances of other receivables classified by debtor:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|||||Proportion of the||
|||||amount to the|Closing balance|
|||||total accounts|of bad debt|
|Name of entity|Nature of the fund|Amount|Aging|receivable (%)|provision|
|Dongguan Chiwan Terminal|Temporary payment duefrom subsidiaries|305,375,000.0|0 Within one year|54.13|-|
|Company Limited.||||||
|Dongguan Chiwan Wharf|Temporary payment duefrom subsidiaries|246,791,847.6|0 Within one year|43.74|-|
|Co., Ltd.||||||
|Chiwan Wharf Holdings|Temporary payment duefrom subsidiaries|2,850,941.5|More than three0year|0.51|-|
|(H.K.) Limited.||||||
||Temporary payment duefrom related parties|2,822,760.3|9 Within one year|0.50|-|
|Nanshan Group||||||
||Temporary payment duefrom related parties|695,498.2|3 Within one year|0.12|-|
|CCT||||||
|Total||558,536,047.7|2|99.00|-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIV) NOTES TO THE KEY ITEMS IN THECOMPANY’S FINANCIAL STATEMENTS - continued
3. Long-term equity investments
Unit: RMB
||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|Investee||Opening balance|Changes||||||||||Closing balance|Closingbalance ofprovision forimpairment|
||||Increase|Decrease|Investment income underequity method||Reconciling|e|Other equitymovements|Cash dividends orprofits announcedof issuance|Provision forimpairment|Others|||
||||||||items from||||||||
||||||||other||||||||
||||||||comprehensiv||||||||
||||||||income||||||||
|I. Subsidiaries|||||||||||||||
||Shenzhen Chiwan International Freight|5,500,000.00|-|-|Not applicable|Notapplicable|||Not applicable|Not applicable|-|-|5,500,000.00|-|
||Agency||||||||||||||
||Company Limited||||||||||||||
||Shenzhen Chiwan Harbor Container|250,920,000.00|-|-|Not applicable|Notapplicable|||Not applicable|Not applicable|-|-|250,920,000.00|-|
||Company Limited||||||||||||||
||Shenzhen Chiwan Transportation|7,000,000.00|-|-|Not applicable|Notapplicable|||Not applicable|Not applicable|-|-|7,000,000.00|-|
||Company Limited||||||||||||||
|Chiwan Wharf Holdings (H.K.) Limited||1,070,000.00|-|-|Not applicable|Notapplicable|||Not applicable|Not applicable|-|-|1,070,000.00|-|
||Shenzhen Chiwan Tugboat Company|24,000,000.00|-|-|Not applicable|Notapplicable|||Not applicable|Not applicable|-|-|24,000,000.00|-|
||Limited||||||||||||||
||Chiwan Container Terminal Company|421,023,199.85|-|-|Not applicable|Notapplicable|||Not applicable|Not applicable|-|-|421,023,199.85|-|
||Limited||||||||||||||
|Dongguan Chiwan Wharf Company Limited||186,525,000.00|-|-|Not applicable|Notapplicable|||Not applicable|Not applicable|-|-|186,525,000.00|-|
||Dongguan Chiwan Terminal Company|175,000,000.00|-|-|Not applicable|Notapplicable|||Not applicable|Not applicable|-|-|175,000,000.00|-|
||Limited||||||||||||||
|Subtotal||1,071,038,199.85||-|||||||-|-|1,071,038,199.85|-|
|II. Associates|||-||||||||||||
|CMHI||14,595,240.92|||2,267,364.00||||-|-|||16,862,604.92|-|
|CMBL||151,985,444.98|||2,738,000.00||||-|-|||154,723,444.98|-|
|Subtotal||166,580,685.90|||5,005,364.00||||-|-|||171,586,049.90|-|
|III. Joint ventures|||||||||||||||
||China Overseas Harbor Affairs (Laizhou)|794,981,306.22|||29,155,806.47||||-|(54,159,674.42)|||769,977,438.27|-|
||Co., Ltd||||||||||||||
|Total||2,032,600,191.97|||34,161,170.47||||-|(54,159,674.42)|||2,012,601,688.02|-|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIV) NOTES TO THE KEY ITEMS IN THECOMPANY’S FINANCIAL STATEMENTS - continued
4. Operating income and operating costs
Unit: RMB
|||||||||||
|-|-|-|-|-|-|-|-|-|-|
|Item|||Jan.-Jun. 2017|||Jan.-Jun. 2016||||
||Item||Income||Cost||Income||Cost|
||Principal operating|103,342,484.62||61,542,231.02||90,048,025.87||64,585,052.56||
||Other operating|16,693,852.72||451,533.62||15,662,004.26||364,898.28||
||Total|120,036,337.34||61,993,764.64||105,710,030.13||64,949,950.84||

 5. Investment income
Details of investment income
Unit: RMB
||||
|-|-|-|
|Item|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Income from long-term equity investments under equity method|34,161,170.47|42,745,478.52|
|Investment income on available-for-sale financial assets, etc.|9,417,000.00|6,292,187.85|
|Total|43,578,170.47|49,037,666.37|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIV) NOTES TO THE KEY ITEMS IN THECOMPANY’S FINANCIAL STATEMENTS - continued
6. Related party transactions
(1) Provision and receipt of services
Unit: RMB
||||||
|-|-|-|-|-|
|||Pricing and decision-|||
|||making procedures of|||
||Content of related party|related party|||
||transaction|transactions|Jan.-Jun. 2017|Jan.-Jun. 2016|
|Receipt of services :|||||
|Chiwan Shipping (Hong Kong) Ltd|Agency service|Negotiation|461,799.81|940,321.59|
|Xuqin|Landscape engineering|Negotiation|416,694.34|179,068.96|
||Property managementservice|Negotiation|175,675.19|148,751.65|
|Chiwan Property|||||
|Haiqin Engineering|Engineering Management|Negotiation|145,848.28|138,578.13|
||Technical service|Negotiation|63,584.93|74,339.65|
|China Merchants Holdings (International) Information|||||
|Technology Company Ltd|||||
|Shenzhen Chiwan Tugboat Company Limited|Tugboat services|Negotiation|12,166.04|13,766.04|
|Shenzhen Chiwan International Freight Agency|Agency service|Negotiation|13,007.98|5,368.30|
|Company Limited|||||
||Load and unload service|Negotiation|47,518.00|-|
|Haixing|||||
|Total|||1,336,294.57|1,500,194.32|
|Rendering of services:|||||
|Dongguan Chiwan Wharf Company Limited|Labor dispatch service|Negotiation|5,189,549.19|11,552,504.65|
|China Overseas Harbour Affairs (Laizhou) Co., Ltd|Labor dispatch service|Negotiation|-|736,553.60|
|SSMSA|Load and unload service|Negotiation|24,659.43|125,799.71|
|Shipping Agency|Berthage fee , etc,|Negotiation|-|76,144.33|
|Ocean Shipping Tally|Load and unload service|Negotiation|-|32,233.58|
|Ocean Shipping Agency|Load and unload service|Negotiation|-|18,736.79|
|Dongguan Chiwan Terminal Company Limited|Labor dispatch service|Negotiation|3,953,940.28|-|
|COFCO & CM (Shenzhen) Grain Electronic Trading Center|Load and unload service|Negotiation|627,197.62|-|
|Total|||9,795,346.52|12,541,972.66|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIV) NOTES TO THE KEY ITEMS IN THECOMPANY’S FINANCIAL STATEMENTS - continued
6. Related party transactions - continued
(2) Leases with related parties
The Group as the lessee:
Unit: RMB
|||||||
|-|-|-|-|-|-|
|Name of lessor||Type of leased assets|Lease payment recognised inthe current year||Lease payment recognised in|
||||||the previous year|
|Nanshan Group||Land, Office and packingyard|4,165,980.04|3,764,963.47||
||Chiwan Base|Office|772,310.94|786,661.42||
||Malai Warehouse|Office|2,104,514.22|1,622,229.74||
||SCT|Crane|-|360,000.00||
||Total||7,042,805.20|6,533,854.63||

 7. Amounts due from/to related parties
Unit: RMB
||||||
|-|-|-|-|-|
|Item|Related parties||Closing balance|Opening balance|
|||Related parties|||
|Cash and bankbalances||China Merchants Bank|25,771,062.09|19,265,421.23|
||China Development Finance Co., Ltd.||205,769.88|1,211,887.57|
|||Total|25,976,831.97|20,477,308.80|
|Accountsreceivable||SSMSA|-|44,129.00|
||Shipping Agency||-|19,870.00|
|||Total|-|63,999.00|
|Other receivables||Dongguan Chiwan Terminal Company Limited|305,375,000.00|361,632,988.72|
||Dongguan Chiwan Wharf Company Limited||246,791,847.60|214,500,000.00|
|||Chiwan Wharf Holdings (H.K.) Limited|2,850,941.50|2,851,360.05|
|||Nanshan Group|2,823,660.39|1,022,760.39|
|||Shenzhen Chiwan Tugboat Company Limited|94,268.78|-|
|||Chiwan Base|135,621.91|135,621.91|
|||China Merchants Shangzhi|58,766.40|58,766.40|
|||Chiwan Container Terminal Company Limited|695,498.23|725,678.44|
|||CHCC|296,575.90|309,683.43|
|||Chiwan Property|150.00|150.00|
|||Hiwin|38,270.45|38,270.45|
|||Total|559,160,601.16|581,275,279.79|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIV) NOTES TO THE KEY ITEMS IN THECOMPANY’S FINANCIAL STATEMENTS - continued
7. Amounts due from/to related parties - continued
|||||||
|-|-|-|-|-|-|
|Item||Related parties||Closing balance|Opening balance|
||Item|||||
||Long-term|Chiwan Wharf Holdings (H.K.) Limited||11,004,284.75|11,004,284.75|
||receivables|||||
|Accountspayable|Accountspayable||Nanshan Group|4,238,274.40|2,906,947.14|
|||Xuqin||702,412.35|785,059.00|
|||Chiwan Shipping (Hong Kong) Ltd||354,680.93|-|
||||Total|5,295,367.68|3,692,006.14|
|Other payables|||Shenzhen Chiwan Harbour Container Company Limited|127,229,139.72|243,733,114.96|
|||Chiwan Container Terminal Company Limited||73,876,018.86|9,697,899.00|
||||Shenzhen Chiwan Transportation Company Limited|37,801,078.98|46,897,834.66|
||||Dongguan Chiwan Wharf Company Limited|13,567,675.68|13,260,132.40|
||||Shenzhen Chiwan Tugboat Company Limited|20,247,549.59|24,912,752.12|
||||Dongguan Chiwan Terminal Company Limited|15,370,363.68|10,133,892.96|
||||Shenzhen Chiwan International Freight Agency|1,006,117.10|975,053.00|
||||Company Limited|||
||||Chiwan Shipping (Hong Kong) Ltd|160,677.46|1,183,964.01|
||||Nanshan Group|59,845.95|58,539.14|
||||China Merchants Shangzhi|352,598.40|-|
||||Xuqin|35,741.00|10,000.00|
||||China Merchants Holdings (International) Information|35,400.00|6,400.00|
||||Technology Company Ltd.|||
||||Chiwan Property|19,321.90|-|
||||Haiqin Engineering|-|389,509.47|
|||Total||289,761,528.32|351,259,091.72|
||Long-term|Chiwan Wharf Holdings (H.K.) Limited||151,378,000.00|116,662,000.00|
||payables|||||
|Interests payable|||Shenzhen Chiwan Transportation Company Limited|131,478.11|1,500,827.59|
|||Shenzhen Chiwan Tugboat Company Limited||181,693.54|97,332.08|
|||Shenzhen Chiwan Harbour Container Company Limited||208,854.27|1,492,533.76|
||||Chiwan Container Terminal Company Limited|159,250.00|-|
||||Total|681,275.92|3,090,693.43|

 Note: The Company collectively manages and coordinates the use of the capital within the Group. The subsidiaries deposit their funds with the Company, and apply for fund when needed. The Company collects fund usage expenses based on the actual financing costs incurred.
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2017
(XIV) NOTES TO THE KEY ITEMS IN THECOMPANY’S FINANCIAL STATEMENTS - continued
8. Supplementary information to the cash flow statement
Unit: RMB
||||
|-|-|-|
|Supplementary information|Jan.-Jun. 2017|Jan.-Jun. 2016|
|1. Reconciliation of net profit to cash flows from operating|||
|activities:|||
|Net profits|73,859,979.29|51,196,211.68|
|Add: Provision for impairment losses of assets|(7,730.22)|-|
|Depreciation of fixed assets|4,996,839.58|6,151,059.41|
|Depreciation and amortization of investment property|241,688.10|289,762.32|
|Amortization of intangible assets|1,467,600.87|1,675,610.86|
|Amortization of long-term prepaid expenses|89,810.34|89,810.34|
|Losses(Profits) on disposal of fixed assets, intangible assets|(81,245.01)|60,987.36|
|and other long-term assets|||
|Financial expenses|9,366,137.76|22,414,459.22|
|Loss (Gains) arising from investments|(43,578,170.47)|(49,037,666.37)|
|Decrease (Increase) in deferred tax assets|-|-|
|Decrease(Increase) in inventories|22,917.22|(35,787.10)|
|Decrease (Increase) in operating receivables|9,406,947.17|127,664,188.41|
|Increase (Decrease) in operating payables|(72,146,418.49)|(49,194,021.19)|
|Net cash flows from operating activities|(16,361,643.86)|111,274,614.94|
|2. Net changes in cash and cash equivalents:|||
|Closing balance of cash|58,389,908.02|190,393,031.45|
|Less: Opening balance of cash|97,401,657.09|331,615,767.60|
|Net increase (decrease) in cash|(39,011,749.07)|(141,222,736.15)|

SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SUPPLEMENTARY INFORMATION TO THE CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2017
1. BREAKDOWN OF EXTRAORDINARY GAINS AND LOSSES
Unit: RMB
||||
|-|-|-|
|Item|Amounts|Description|
|Profit or loss on disposal of non-current assets|(448,433.95)||
|Tax refunds or reductions with ultra vires approval or without official|-||
|approval documents|||
|Government grants recognized in profit or loss (except for grants that are closely|498,801.18||
|related to the Company's business and are in amounts and quantities fixed in|||
|accordance with the national standard)|||
|Money lending income earned from non-financial institutions in profit or loss|-||
|The excess of attributable fair value of identifiable net assets over the consideration|-||
|paid for subsidiaries, associates and joint ventures|||
|Profit or loss on exchange of non-monetary assets|-||
|Profit or loss on entrusted investments or assets management|-||
|Provision of impairment losses for each asset due to force majeure, e.g. acts of God|-||
|Profit or loss on debt restructuring|-||
|Business restructuring expenses, e.g., expenditure for layoff of employees,|-||
|integration expenses, etc.|||
|Profit or loss relating to the unfair portion in transactions with unfair|-||
|transaction price|||
|Net profit or loss of subsidiaries recognized as a result of business combination of|-||
|enterprises under common control from the beginning of the period up|||
|to the business combination date|||
|Profit or loss arising from contingencies other than those related to normal operating|-||
|business|||
|Profit or loss on changes in the fair value of financial assets and financial liabilities|-||
|held for trading and investment income on disposal of held-for-trading financial|||
|assets, held-for-trading financial liabilities and available-for-sale financial assets,|||
|other than the effective hedging activities relating to normal operating business|||
|Reversal of provision for accounts receivable that are tested for impairment|-||
|losses individually|||
|Profit or loss on entrusted loans|-||
|Profit or loss on changes in the fair value of investment properties that are|-||
|subsequently measured using the fair value model|||
|Effects on profit or loss of one-off adjustment to profit or loss for the period|-||
|according to the requirements by tax laws and accounting laws and regulations|||
|Custodian fees earned from entrusted operation|-||
|Other non-operating income or expenses other than above|1,614,224.70||
|Other profit or loss that meets the definition of non-recurring profit or loss|-||
|Tax effects|(334,195.42)||
|Effects of minority interest (after tax)|(467,611.90)||
|Total|862,784.61||

2. RETURN ON NET ASSETS AND EARNINGS PER SHARE ("EPS")
The return on net assets and EPS have been prepared by Shenzhen Chiwan Wharf Co., Ltd in accordance with Information Disclosure and Presentation Rules for Companies Making Public Offering No. 9 - Calculation and Disclosure of Return on Net Assets and Earnings per Share (Revised in 2010) issued by China Securities Regulatory Commission.
Unit: RMB