Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
SHENZHEN CHIWAN WHARF HOLDINGS LIMITED
SEMI-ANNUAL REPORT 2016
Date of disclosure: 26 August 2016
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
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.
This report has been reviewed and approved at the Sixth Meeting of the Eighth Board of Directors.
Independent Director Su Qiyun was unable to attend the Meeting for his own reason, but he had
expressed his consent to all proposals for the Meeting and authorized Independent Director Li
Changqing to attend the Meeting, express opinions and sign relevant meeting documents on behalf
of him.
The Company plans not to distribute cash dividends or bonus shares or turn capital reserve into
share capital.
Shi Wei, chairman of the Board of Directors, Zhang Fang, CFO, and Li Li, financial manager,
hereby confirm that the Financial Report enclosed in this report is factual, accurate and complete.
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 to
what’s disclosed on the aforesaid media. Investors are kindly reminded to pay attention to possible
risks.
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 2016
Contents
Section I Important Reminders, Contents & Definitions .............................................. 1
Section II Company Profile ........................................................................................... 4
Section III Highlights of Accounting Data & Financial Indicators .............................. 6
Section IV Report of the Board of Directors................................................................. 8
Section V Significant Events ....................................................................................... 16
Section VI Changes in Shares & Particulars about Shareholders ............................... 27
Section VII Preference Shares ..................................................................................... 30
Section VIII Directors, Supervisors & Senior Management Staff .............................. 31
Section IX Financial Report ........................................................................................ 32
Section X Documents Available for Reference ........................................................... 32
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Definitions
Term Refers to Definition
Company, the Company or
Refers to Shenzhen Chiwan Wharf Holdings Limited
Chiwan Wharf
China Merchants Holdings (International) Company
CMHI or CMPort* Refers to Limited or 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
Shenzhen Bureau of China Securities Regulatory
Shenzhen CSRC Refers to
Commission
The Company Law Refers to The Company Law of the People’s Republic of China
The Securities Law of the People’s Republic of
The Securities Law Refers to
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
* 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 Semi-annual Report 2016
Section II Company Profile
I Basic information about the Company
Stock name Chiwan Wharf A, Chiwan Wharf B Stock code 000022, 200022
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 深圳赤湾港航股份有限公司
Abbreviation (if any) 深赤湾
Company name in English
Shenzhen Chiwan Wharf Holdings Limited
(if any)
Abbreviation (if any) Chiwan Wharf
Legal representative Shi Wei
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 2015
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 2015 Annual Report.
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
3. Changes in the registered information
The registration date and place of the Company, its business license No., taxation registration No.
and organizational code did not change during the reporting period. The said information can be
found in the 2015 Annual Report.
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section III Highlights of Accounting Data & Financial Indicators
I Major accounting data and financial indicators
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
Unit: RMB
Reporting period Same period of last year YoY +/-（％）
Operating revenues 904,809,652.24 880,788,008.78 2.73%
Net profit attributable to shareholders
266,535,506.97 241,977,372.34 10.15%
of the Company
Net profit attributable to shareholders
of the Company after excluding 264,716,384.31 243,763,081.71 8.60%
extraordinary gains and losses
Net cash flows from operating
368,657,243.80 365,522,514.71 0.86%
activities
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%
As at the end of the
As at the end of last year +/-（％）
reporting period
Total assets 6,626,761,280.09 6,913,772,876.99 -4.15%
Net assets attributable to shareholders
4,445,203,535.69 4,439,600,537.05 0.13%
of the Company
Number of the Company’s total shares of the trading day before the disclosure of this report:
The Company’s total shares of the trading day before the disclosure of this report (share) 644,763,730
Fully diluted EPS based on the latest total shares above (RMB/share) 0.413
II 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
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
III Items and amounts of extraordinary gains and losses
Unit: RMB
Item Amount
Gains/losses on the disposal of non-current assets (including the offset part of the
-176,169.44
asset impairment provisions)
Government grants recognized in the current period, except for those acquired in the
ordinary course of business or granted at certain quotas or amounts according to the 419,197.16
government’s unified standards
Non-operating income and expense other than the above 1,894,720.46
Less: Income tax effects 144,553.92
Minority interests effects (after tax) 174,071.60
Total 1,819,122.66
The Company did not shift in the reporting period any extraordinary gain/loss item as defined and
listed in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering
Their Securities to the Public—Extraordinary Gains and Losses to a recurrent gain/loss item.
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
Section IV Report of the Board of Directors
I Overview
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 to 6.7%. With sluggish demand, China’s
total volume of foreign trade dropped 8.7% from the same period of last year. Growth in the wharf
industry was at a slow pace. The cargo throughput of China’s coastal wharfs above the designated
size went up 1.7% 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 of 2.0%, slightly higher than the
national average), operating revenues of RMB905 million (a year-on-year increase of 2.73%), total
profit of RMB384 million (a year-on-year increase of 11.54%), and net profit attributable to the
Company of RMB267 million (a year-on-year increase of 10.15%).
1. Container handling business
Growth in the global container capacity significantly slowed down to 3.9%, 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 declined
2.7% year on year. Ports in Shenzhen achieved a container throughput of 11.436 million TEU,
down 1.2% 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 rose 9.7% as compared to the same period of last year.
Amid increasing local competition, we handled 2.444 million TEU of containers, up 5.5% on a
year-on-year basis, accounting for 21% 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 the government’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 a 2.0% increase in our grain
and feedstuff throughput despite a 6.7% decrease in the region’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 dropped 16.6% on a year-on-year basis.
To sum up, we achieved a bulk cargo throughput of 8.567 million tons in the reporting period,
down 2.2% from a year earlier.
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
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:
Reporting period Same period of last year
Main business indicator YoY +/-%
(January-June 2016) ( January-June 2015)
Total throughput (thousand tons) 32,585 31,956 2.0%
Among which:
2,444 2,316 5.5%
Container throughput (thousand TEU)
Bulk cargo throughput (thousand tons) 8,567 8,758 -2.2%
Hours charged for tow trucks (thousand 547 539 1.5%
hours)
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 on China’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 customers’ 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.
Shenzhen Chiwan Wharf Holdings Limited Semi-annual Report 2016
II Main business analysis
YoY movements in financial highlights
Unit: RMB
Same period of last
Reporting period YoY +/-% Main reasons for movements
year
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
