Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016 Stock code: 000022/200022 Stock name: Chiwan Wharf A/Chiwan Wharf B Announcement No. 2016-033 Shenzhen Chiwan Wharf Holdings Limited
Abstract of Semi-annual Report 2016
1. Important reminders
This abstract is based on the full text of the semi-annual report. For more details, investors are suggested to read the full text disclosed at the same time with this abstract on http://www.cninfo.com.cn, the website of Shenzhen Stock Exchange or any other website designated by the CSRC.
This report is prepared in both Chinese and English. Should there be any discrepancy between the two versions, the Chinese version shall prevail.
Company profile
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|Stock name|Chiwan Wharf A, Chiwan Wharf B||Stock code|000022, 200022|
|Stock exchange|Shenzhen Stock Exchange||||
|Contact information|Board Secretary|Securities Representative|||
|Name|Mr. Wang Yongli|Ms. Hu Jingjing and Ms. Chen Dan|||
|Tel.|+86 755 26694222|+86 755 26694222|||
|Fax|+86 755 26684117|+86 755 26684117|||
|E-mail|cwh@szcwh.com|cwh@szcwh.com|||

2. Financial highlights and change of shareholders
（1）Financial highlights
Does the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy or correction of any accounting error?
□ Yes√ No
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|-|-|-|-|
||Reporting period|Same period of last year|YoY +/-（％）|
|Operating revenues (RMB)|904,809,652.24|880,788,008.78|2.73%|
|Net profit attributable to shareholders of the|266,535,506.97|241,977,372.34||
||||10.15%|
|Company (RMB)||||
|Net profit attributable to shareholders of the||||
|Company after excluding extraordinary gains|264,716,384.31|243,763,081.71|8.60%|
|and losses (RMB)||||
|Net cash flows from operating activities|368,657,243.80|365,522,514.71||
||||0.86%|
|(RMB)||||
|Basic EPS (RMB/share)|0.413|0.375|10.13%|
|Diluted EPS (RMB/share)|0.413|0.375|10.13%|
|Weighted average ROE (%)|5.88%|5.76%|0.12%|

Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016
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|-|-|-|-|
||As at the end of the|||
|||As at the end of last year|+/-（％）|
||reporting period|||
|Total assets (RMB)|6,626,761,280.09|6,913,772,876.99|-4.15%|
|Net assets attributable to shareholders of the|4,445,203,535.69|4,439,600,537.05||
||||0.13%|
|Company (RMB)||||

（2） Shareholdings of the top 10 common shareholders
Unit: share
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|-|-|-|-|-|-|-|-|-|-|-|
|Total number of|36,261 shareholders, including 26,079 A-share holders and 10,182B-share holders|||||Total number of preference shareholders who|||||
|shareholders at the end||||||had resumed their voting right at the end of the||||0|
|of the reporting period||||||reporting period (if any)|||||
|Shareholdings of top ten shareholders (all being non-restricted shareholders)|||||||||||
||||Percentag|Number of|Increase/decre|||Number of|Type of||
||||||||Pledged or||||
|||Nature of|e of|common shares|ase in the|||common shares|shares (A,||
|Name of shareholder|||||||frozen||||
|||shareholder|shareholdi|held at the|reporting|||held at the|B, H or||
||||||||shares||||
||||ng|period-end|period|||period-end|other)||
|CHINA NANSHAN DEVELOPMENT(GROUP) INC.||State-ownedcorporation|32.52%|209,687,067|0||0|209,687,067|||
||||||||||A-share||
|SHENZHEN MALAI STORAGE CO., LTD.||Commondomesticcorporation|25%|161,190,933|0||0|161,190,933|||
||||||||||A-share||
|KEEN FIELD ENTERPRISES LIMITED||Foreigncorporation|8.58%|55,314,208|0||0|55,314,208|||
||||||||||B-share||
|CMBLSA RE FTIF TEMPLETON ASIANGRW FD GTI 5496||Foreigncorporation|7.43%|47,914,954|0||Unknown|47,914,954|||
||||||||||B-share||
|ZHU WUGUANG||Domesticindividual|0.62%|3,973,723|3,781,499||Unknown|3,769,399|||
||||||||||A-share||
|||||||||204,324|||
||||||||||B-share||
|CMBNA/STICHTING PENS FND ABP||Foreigncorporation|0.54%|3,463,503|0||Unknown|3,463,503|||
||||||||||B-share||
|BBH A/C VANGUARD EMERGINGMARKETS STOCK INDEX FUND||Foreigncorporation|0.41%|2,617,518|0||Unknown|2,617,518|||
||||||||||B-share||
|TEMPLETON ASIAN GROWTH FUND||Foreigncorporation|0.39%|2,534,858|-122,994||Unknown|2,534,858|||
||||||||||B-share||
|CHINA MERCHANTS SECURITIES (HK)CO., LTD.||State-ownedcorporation|0.33%|2,111,462|175,886||Unknown|2,111,462|||
||||||||||B-share||
|NORGES BANK||Foreigncorporation|0.26%|1,660,562|579,100||Unknown|1,660,562|||
||||||||||B-share||
||||China Merchants Holdings (International) Company Limited (CMHI)* is a shareholder||||||||
||||of China Nanshan Development (Group) Inc.. Shenzhen Malai Storage Co., Ltd. and||||||||
|Explanation on associated relationship or/and persons acting|||||||||||
||||Keen Field Enterprises Limited are both wholly-funded subsidiaries of CMHI. Other||||||||
|in concert among the above-mentioned shareholders:|||||||||||
||||than that, the Company does not know whether the other non-restricted shareholders||||||||
||||are related parties or not.||||||||

* China Merchants Holdings (International) Company Limited has officially changed its name to “China Merchants Port Holdings Company Limited” (“CMPort” for short) on 10 August 2016.
Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016（3）Shareholdings of the top 10 preference shareholders
□ Applicable√ Not applicable
We had no preference shares during the reporting period.
（4）Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the reporting period
□ Applicable√ Not applicable
Our controlling shareholder did not change during the reporting period.
Change of the actual controller in the reporting period
□ Applicable√ Not applicable
Our actual controller did not change during the reporting period.
3. Discussion and analysis by the management
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.
The first half of 2016 saw a weak recovery of the global economy and increased volatility in the financial market. As China steadily pushed forward its supply-side structural reform and transformation, its economic growth further slowed down to6.7%. With sluggish demand,China’s total volume of foreign trade dropped8.7% from the same period of last year. Growth in the wharf industry was at a slow pace. The cargo throughput ofChina’s coastal wharfs above the designated size went up1.7% year on year.
The main indicators of our production and operation in the reporting period all registered growth: a cargo throughput of 32.585 million tons (a year-on-year increase of2.0%, slightly higher than the national average), operating revenues of RMB905 million (a year-on-year increase of2.73%), total profit of RMB384 million (a year-on-year increase of11.54%), and net profit attributable to the Company of RMB267 million (a year-on-year increase of10.15%).
1. Container handling business
Growth in the global container capacity significantly slowed down to3.9%, but overcapacity remained. With lower earnings for shipping companies, the shipping alliances were on the verge of a reshuffle. In the reporting period, container throughput of main ports in South China declined2.7% year on year. Ports in Shenzhen achieved a container throughput of 11.436 million TEU, down1.2% from a year earlier. Thanks to our efforts in strengthening business expansion and looking for new shipping routes to minimize the impact of the alliance reshuffle, we managed to maintain a stable number of shipping routes. Meanwhile, we upgraded our logistics service by developing our barge business to attract cargos from the hinterland. As a result, the number of transit containers from the Pearl River Delta rose9.7% as compared to the same period of last year. Amid increasing
Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016 local competition, we handled 2.444 million TEU of containers, up5.5% on a year-on-year basis, accounting for21% of the Shenzhen port market, 1 percentage point higher than the same period of last year.
2. Bulk cargo handling business
Due to a weak market and thegovernment’s de-stocking policy,China’s imports of grain and fertilizer both decreased in the first half of the year. We had to work hard to expand our inbound grain and feedstuff handling business. And our effort was rewarded by a2.0% increase in our grain and feedstuff throughput despite a6.7% decrease in theregion’s total inbound grain and feedstuff, which means we are still a leader in the Pearl River Delta in this respect. Meanwhile, due to a weak demand and high port capacity, our throughput of fertilizer dropped16.6% on a year-on-year basis. To sum up, we achieved a bulk cargo throughput of 8.567 million tons in the reporting period, down2.2% from a year earlier.
3. Supporting services and investment management
Our supporting services of tow truck, tugboat, customs clearance, barge and the like went on smoothly. Meanwhile, our main investees such as China Overseas Harbour Affairs (Laizhou) Co., Ltd., China Merchants Bonded Logistics Co., Ltd. and China Merchants Holdings (International) Information Technology Co., Ltd. achieved greatly improved business results, producing much higher returns on our investments from a year earlier. Our business highlights are set out as follows:
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|Main business indicator|Reporting period(January-June 2016)|Same period of last year( January-June 2015)|YoY +/-%|
|Total throughput (thousand tons)|32,585|31,956|2.0%|
|Among which:Container throughput (thousand TEU)|2,444|2,316|5.5%|
|Bulk cargo throughput (thousand tons)|8,567|8,758|-2.2%|
|Hours charged for tow trucks (thousand hours)|547|539|1.5%|
|Hours charged for tugboats (hour)|16,790|15,609|7.6%|

 In the reporting period, we continued to push forward lean management by launching a management information platform. We encouraged technique and process reform and accomplished multiple projects of technical innovation. The internal control system was further improved in quality and efficiency. In addition, cost control was strengthened. As a result, operating costs grew slower than the business volume did and our operating efficiency was further increased.
In the second half of the year, recovery of the global economy is expected to continue to slow down, with more downward pressure onChina’s economy. Meanwhile, due to weak demand and currency pressure,China’s foreign
trade may remain sluggish, posing a great challenge to our business development. In terms of our container
handling business, growth is difficult because of the local competition and lower transit demand as a result of
Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016customers’ business adjustments. We will keep a watchful eye on new adjustments of liner alliances and adopt flexible, effective business tactics to look for opportunities amid route adjustments. In the meantime, we will upgrade our berths to cater for bigger and bigger ships and maintain stable business. Concerning our bulk cargo handling business, we closely follow market and policy changes, push forward strategic coordination with other local wharfs and try to maintain stability in key clients and rates. Meanwhile, we will accelerate the resource upgrade of our Chiwan Wharf and the construction of warehousing facilities in our Machong Wharf so as to increase the overall resource capability of our wharfs and help seek opportunities for business growth in the second half of the year. As for internal management, we will strengthen control of operating risks, push forward all the work as planned and focus on maintaining the level of earnings by increasing our resource use efficiency and effective cost control.
No major changes occurred to the profit structure or sources of the Company during the reporting period.
YoY movements in financial highlights:
Unit: RMB
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|-|-|-|-|-|
||Reporting period|Same period of last year|YoY +/-%|Main reasons for movements|
|Operating revenues|904,809,652.24|880,788,008.78|2.73%|-|
|Operating costs|492,158,524.59|463,427,511.59|6.20%|-|
|Administrative|81,947,868.71|84,201,871.92|||
||||-2.68%|-|
|expenses|||||
||14,253,614.35|34,170,800.29||Interest cost decreased as the|
|||||average balance of|
|Financial costs|||-58.29%||
|||||interest-bearing debts and the|
|||||average loan rate decreased|
||49,661,006.76|34,458,531.16||Expiration of the income tax|
|||||preferential policy (exemption for|
|||||first three years and half|
|Corporate income|||||
||||44.12%|reduction for second three years)|
|tax expenses|||||
|||||of subsidiary Dongguan Chiwan|
|||||Wharf Company Limited from|
|||||this year|
|R&D expenses|15,986,053.06|15,445,960.91|3.50%|-|
|Net cash flows|368,657,243.80|365,522,514.71|||
|from operating|||0.86%|-|
|activities|||||
|Net cash flows|16,665,254.18|-12,068,746.10|||
|||||Increase in dividends from joint|
|from investing|||238.09%||
|||||ventures and associates|
|activities|||||
|Net cash flows|-664,817,669.11|-514,366,523.61|||
|from financing|||-29.25%|Increase in debt repayments-net|
|activities|||||
|Net increase in|-277,266,096.67|-160,462,810.25|||
|||||Decrease in cash flows from|
|cash and cash|||-272.79%||
|||||financing activities|
|equivalents|||||

Shenzhen Chiwan Wharf Holdings Limited Abstract of Semi-annual Report 2016 4. Matters related to financial reporting
(1) Explain any changes in the accounting policies, accounting estimates and measurement methods as compared with the financial reporting of last year
□ Applicable√ Not applicable
No such cases.
(2) Explain any retrospective restatement due to correction of significant accounting errors in the reporting period
□ Applicable√ Not applicable
No such cases in the reporting period.
(3) Explain any changes in the consolidation scope as compared with the financial reporting of last year□ Applicable√ Not applicable
No such cases in the reporting period.
(4) Explanation of the Board of Directors and the Supervisory Committee concerning the “non-standard audit report” issued by the CPAs firm for the reporting period
□ Applicable√ Not applicable
For and on behalf of the Board
Shi Wei
Chairman
Shenzhen Chiwan Wharf Holdings Limited
Dated 26 August 2016