ANNUAL REPORT FOR YEAR 2015
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
ANNUAL REPORT FOR YEAR 2015
April 2016
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ANNUAL REPORT FOR YEAR 2015
PART Ⅰ Important Notice
The Board of Directors, the Board of Supervisors, directors, supervisors and senior management guarantee
that there are no omissions, misstatement or misleading information in this report. They are responsible,
individually and jointly, for the authenticity, accuracy and integrity of the information herein.
Mr. Tian Junyan, Chairman of the Board, Ms. Yu Zhongxia, Deputy General Manager &Financial
Controller, and Ms. Sun Yuhui, Financial Manager, guarantee the authenticity and integrity of the financial
result in this report.
Except the following directors, other directors attend the Board Meeting.
Absent Director Post of the Absent Director Reason Authorized Person
Mr. Mingzhi Mei Director Business Arrangement Wang Shiyun
Mr. Kent Yang Director Business Arrangement Shu Qian
This annual report contains prospective descriptions, which does not constitute substantial commitment to
investors. Investors are requested to be aware of the risks attached to their investment decisions.
Impossible risk has been well-described in this report. Please find details of risks and countermeasures of
future development described in Section IX, Part IV.
Securities Times, Hong Kong Commercial Daily and www.cninfo.com.cn are the media designated for
disclosing our information. All the Company’s information is subject to the information disclosed in the
aforesaid media as designated.
The Company will not distribute cash dividends or bonus shares, neither capitalizing of common reserves
for the report period.
This report is prepared both in Chinese and English languages, when ambiguity occurs in the two versions,
the Chinese version shall prevail.
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ANNUAL REPORT FOR YEAR 2015
Contents
PART Ⅰ Important Notice ....................................................................................................................................................................2
PART II Corporate Information and Accounting Data .............................................................................................................................6
PART III Business Summary ..............................................................................................................................................................10
PART V Business Discussion and Analysis ........................................................................................................................................12
PART V Significant Events....................................................................................................................................................................23
PART VI Changes in Capital Stock and Shareholders ...........................................................................................................................35
PART VII Particulars about Preferred Share..........................................................................................................................................40
PART VIII Directors, Supervisors, Senior Management and Staff ........................................................................................................41
PART IX Corporate Governance ...........................................................................................................................................................49
PART X Financial Report ......................................................................................................................................................................55
PART XI Documents Available for Verification ....................................................................................................................................55
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ANNUAL REPORT FOR YEAR 2015
Definition
Terms to be defined Refers to Definition
The Company, Chiwan Base Refers to Shenzhen Chiwan Petroleum Supply Base Co., Ltd.
Nanshan Group Refers to China Nanshan Development (Group) Incorporation
Blogis Holding Refers to Blogis Holding Co., Ltd.
Shanghai Baowan Refers to Shanghai Baowan International Logistic Co., Ltd.
Guangzhou Baowan Refers to Guangzhou Baowan Logistic Co., Ltd.
Kunshan Baowan Refers to Kunshan Baowan International Logistic Co., Ltd.
Tianjin Baowan Refers to Tianjin Baowan International Logistic Co., Ltd.
Langfang Baowan Refers to Langfang Baowan International Logistic Co., Ltd.
Xindu Baowan Refers to Chengdu Xindu Baowan International Logistic Co., Ltd.
Longquan Baowan Refers to Chengdu Longquan Baowan International Logistic Co., Ltd.
Nanjing Baowan Refers to Nanjing Baowan International Logistic Co., Ltd.
Tianjin Bingang Baowan Refers to Tianjin Bingang Baowan International Logistic Co., Ltd.
Nantong Baowan Refers to Nantong Baowan International Logistic Co., Ltd.
Wuhan Baowan Refers to Baowan Logistic（Wuhan）Co., Ltd.
Yangluo Baowan Refers to Baowan Logistic（Wuhan）Yangluo Co., Ltd.
Shenzhen Baowan Refers to Shenzhen Baowan International Logistic Co., Ltd.
Shanghai Mingjiang Refers to Mingjiang (Shanghai) International Logistic Co., Ltd.
Shenyang Baowan Refers to Shenyang Baowan International Logistic Co., Ltd.
Tianjin Qingwu Baowan Refers to Tianjin Qingwu Baowan International Logistic Co., Ltd.
Feidong Baowan Refers to Baowan Logistic Feidong Co., Ltd.
Xi‘an Baowan Refers to Xi‘an Baowan International Logistic Co., Ltd.
Xianyang Baowan Refers to Xianyang Baowan International Logistic Co., Ltd.
Blogis ( Hongkong ) Refers to Blogis ( Hongkong ) Limited
Huitong(H.K.) Refers to China Huitong (H.K.) Limited
Nanshan Hong Kong Refers to Nanshan Development (Hongkong) Limited
Wuxi Baowan Refers to Wuxi Blogis Co. Ltd
Zhenjiang Baowan Refers to Zhenjiang Shenjidi Warehouse Co.,Ltd.
Changzhou Baowan Refers to Changzhou Baowan Logistic Co., Ltd.
Jiangyin Baowan Refers to Jiangyin Baowan International Logistic Co., Ltd.
Qingdao Jiaozhou Baowan Refers to Qingdao Jiaozhou Baowan International Logistic Co., Ltd.
Jiaxing Baowan Refers to Jiaxing Baowan Logistic Co., Ltd.
Jiangsu Baowan Refers to Jiangsu Baowan International Logistic Co., Ltd.
Shaoxing Baowan Refers to Shaoxing Baowan Logistic Co., Ltd.
Chongqing Xipeng Baowan Refers to Chongqing Xipeng Baowan International Logistic Co., Ltd.
Ezhou Baowan Refers to Wuhan Baowan Logistic Ezhou Co., Ltd.
Nantong Xitong Baowan Refers to Nantong Xitong Baowan Logistic Co., Ltd.
Jiashan Baowan Refers to Jiashan Baowan Logistic Co., Ltd.
Chengdu Oil and Gas Base Refers to Chengdu Chiwan International Oil and Gas Base Co., Ltd.
Zhengzhou Baohai Refers to Zhengzhou Baohai International Logistic Co., Ltd.
CSE/Sembawang Refers to Shenzhen Chiwan Sembawang Engineering Co., Ltd
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ANNUAL REPORT FOR YEAR 2015
CPEC Refers to Shenzhen Chiwan Offshore Petroleum Engineering Co., Ltd.
China Development Finance Refers to China Development Finance Company Limited
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ANNUAL REPORT FOR YEAR 2015
PART II Corporate Information and Accounting Data
I. Company Profile
Stock Abbreviation Chiwan Base B Stock Code 200053
Stock Exchange Shenzhen Stock Exchange
Company‘s Name in Chinese 深圳赤湾石油基地股份有限公司
Company‘s Short Name in Chinese 深基地 B
Company‘s Name in English Shenzhen Chiwan Petroleum Supply Base Co., Ltd.
Company‘s Short Name in English Chiwan Base
Legal Representative Tian Junyan
Registered Address Chiwan, Shenzhen
Post Code 518068
Office Address 14/F, Chiwan Petroleum Building, Shenzhen
Post Code 518068
Website www.chiwanbase.com
E-mail sa@chiwanbase.com
II. Contact Person and Method
Board Secretary Securities Representative
Name Song Tao Li Zizheng
Address 14/F, Chiwan Petroleum Building, Shenzhen, PRC 14/F, Chiwan Petroleum Building, Shenzhen, PRC
Telephone 0755-26694211 0755-26694211
Fax 0755-26694227 0755-26694227
Email sa@chiwanbase.com sa@chiwanbase.com
III. Information Disclosure
Designated Newspapers for Information Disclosure Securities Times, Hong Kong Commercial Daily
Website for Information Disclosure www.cninfo.com.cn
Place Of Regular Reports Prepared For Inquiry 14/F, Chiwan Petroleum Building, Shenzhen, PRC
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ANNUAL REPORT FOR YEAR 2015
IV. Changes in Registration
Organization Code 61883389-9
Change of Main Business since Listed N/A
Change of Controlling Shareholder N/A
V. Other Information
Appointed Certified Public Accountants
Name of the CPAs Deloitte Touche Tohmatsu Certified Public Accountants LLP
Office Address 30/F, Waitan Center, No. 222 Yan‘an Road East, Shanghai
Names of the Certified Public
Li Weihua, Jiang Qishen
Accountants as the signatories
The sponsor performing persistent supervision duties engaged by the Company in the report period
□ Applicable √ Inapplicable
The financial advisor performing persistent supervision duties engaged by the Company in the report period
□ Applicable √ Inapplicable
VI. Major Accounting Data and Financial Indicators
Y2015 Y2014 Change (%) Y2013
Operating Revenue (RMB) 650,279,516.34 712,958,603.26 -8.79% 691,832,626.47
Net Profit Attributed to Shareholders of Listed
91,644,920.49 218,544,184.50 -58.07% 204,249,571.44
Company (RMB)
Net Profit Net of Non-recurring Gain and Loss
83,094,036.55 220,496,736.41 -62.32% 200,374,681.04
Attributed to Listed Company (RMB)
Net Cash Flows from Operating Activities (RMB) 332,656,351.44 414,370,760.05 -19.72% 434,087,958.45
Basic Earnings per Share (RMB/Share) 0.40 0.95 -57.89% 0.89
Diluted Earnings per Share (RMB/Share) 0.40 0.95 -57.89% 0.89
Weighted Return on Equity（%） 5.31% 13.84% -8.53% 14.84%
December 31, 2015 December 31, 2014 Change (%) December 31, 2013
Total Assets (RMB) 5,643,956,639.17 5,389,629,871.81 4.72% 4,718,603,625.96
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ANNUAL REPORT FOR YEAR 2015
Owner‘s Equity Attributed to Shareholders of
1,754,085,176.85 1,690,486,032.37 3.76% 1,470,275,398.55
Listed Company (RMB)
VII. Accounting Difference between Chinese General Accepted Accounting Principal
(GAAP) and International Financial Reporting Standard(IFRS)
1. Simultaneously pursuant to both Chinese accounting standards and international accounting
standards disclosed in financial report of differences in net income and net assets.
□ Applicable √ Inapplicable
2. Differences of net profit and net assets disclosed in financial report prepared under overseas and Chinese
accounting standards.
□ Applicable √ Inapplicable
VIII. Main Financial Index by Quarters
Unit: RMB
First Quarter Second Quarter Third Quarter Fourth Quarter
Operating Revenue 147,824,556.91 159,294,515.77 170,600,550.00 172,559,893.66
Net Profit Attributed to Shareholders of
22,604,615.62 20,025,317.86 28,165,868.96 20,849,118.05
Listed Company
Net Profit Net of Non-recurring Gain and
21,078,656.96 18,444,962.63 27,854,136.94 15,716,280.02
Loss Attributed to Listed Company
Net Cash Flows from Operating Activities 78,023,735.31 45,910,282.18 108,020,416.02 100,701,917.93
Any material differences between the financial indicators above or their summations and those which have been
disclosed in quarterly or semi-annual reports?
□Yes √No
IX. Items of Non-recurring Gains & Losses
√ Applicable □ Inapplicable
Unit: RMB
Item Amount in 2015 Amount in 2014 Amount in 2013 Note
Disposal of non-current assets, including the part
-303,073.93 189,620.61 223,146.43
offset with the provision for impairment of assets
Government grants recognized in current year‘s profit
or loss (except for the fixed or quantitative
12,491,552.18 9,686,859.21 4,694,608.73
government grants closely related to the enterprise
businesses according to the national unified standard)
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ANNUAL REPORT FOR YEAR 2015
Net profit or loss of subsidiaries from the beginning
of the period up to the business combination date
-12,902,949.53
recognized as a result of business combination of
enterprises under common control
Other non-operating revenue and expenditure
2,002,874.30 265,188.43
excluding the above-mentioned items
Other items of non-recurring gains & losses -70,881.71
Less: Influence on income tax 2,906,602.66 2,969,838.53 1,295,735.90
Amount affected by minority equity (after tax) 660,109.94 -2,040,882.03 12,317.29
Total 8,550,883.94 -1,952,551.91 3,874,890.40 --
For the Companys non-recurring gain/loss items as defined in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses
and its non-recurring gain/loss items as illustrated in the Explanatory Announcement No. 1 on Information
Disclosure for Companies Offering their Securities to the Public – Non-recurring Gains and Losses which have
been defined as recurring gains and losses, it is necessary to explain the reason.
□ Applicable √ Inapplicable
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ANNUAL REPORT FOR YEAR 2015
PART III Business Summary
I. Main Business of the Company
1. Main Business
(1) The Company provides oil logistics support services for oil exploration, development and production in
the eastern South China Sea. Under the effect of sharp decline of international oil price and operation of
CNOOC Huizhou Base, the operating income and profit of offshore oil logistics business fell sharply.
(2) The Company provides logistics park services for warehousing, distribution, supply chain management,
logistics finance, equipment leasing and e-commerce by controlling subsidiaries. By the end of report
period, there was only one logistics park developing e-commerce services.
(3) The Company provides offshore engineering services for structure design, fabrication and maintenance
by associated companies.
2. Characteristics of Industry Development
(1) Offshore Oil Logistics Business
After the fully operation of CNOOC Huizhou Base, it has occupied the majority of market share. The
competition of offshore oil logistics will become more intensive in 2016. Meanwhile, for the continued
downturn of oil price, Chiwan Base faces great operation pressure. There are also challenges for Chengdu oil
and gas base‘s marketing work.
(2) Warehousing Logistics Services
In the past ten years, warehousing logistics services developed rapidly. The demand for modern logistics
facilities still exceeds supply. For now, warehousing logistics services had become the hot spot for both real
estate industry and logistic industry. The representatives as Prologis, Goodman, Alibaba and Vanke have
accelerated their layout. By now, Blogis takes the leading position in domestic market.
II. Major Changes for Main Assets
1. Major Changes for Main Assets
Major assets Major changes
Equity Assets No major changes.
Fixed Assets No major changes.
Intangible Assets No major changes.
Construction in Progress No major changes.
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ANNUAL REPORT FOR YEAR 2015
2. Major Overseas Assets
□ Applicable √ Inapplicable
III. Analysis of Core Competitiveness
1. Offshore Oil Logistics Business
As an internationally renowned petroleum logistics service base, the Company has enjoyed nearly three
decades history of development course in the Eastern South China Sea with "Chiwan Base‖ brand great
reputation at home and abroad. In 2015, Chiwan Base was classified in China （Guangdong） Pilot Trade
Zone, Qianhai & Shekou Area of Shenzhen, which brought new opportunity for the Company. The Company
will seize the opportunity and develop new profit point for Chiwan Base.
2. Blogis Business
Blogis business is another core business of the Company‘s development strategy. Nowadays Blogis service is
gradually shaping its logistics network layout all over the country with its leading park scale, well-known
industrial brand of logistics parks and rich experience in park development construction and operation
management etc. As to price benchmarking, customer resources, service standards, profitability and so on,
Blogis plays a leading role in the local logistics market.
As well as developing and building up professional storage facilities, Blogis Holdings provides the settled
enterprises with loading and unloading, facilities leasing, product processing, intercity transportation, urban
shop distribution, vendor storage handling, logistic finance and other flexible value-added services, which
strive to construct advanced supply chain platform with efficient, excellent and safe services to absorb more
well-known manufacturers, retailers and logistic partners home and abroad.
Management model, as well-known logistic park developer and operator, Blogis Holdings has formed
scientific standardization processes not only in site selection, planning and design, project construction, but
also in the property management and supply chain business cooperation after the operation. And there are
numbers of professionals in modern logistics park development and management.
In 2015, with the joining of real estate business, e-commerce and real estate funds and other investment,
competition of logistics park has intensified. In addition, with the change of national land policy, the
standards and requirements of logistics parks in land development, construction and operation will face great
challenges.
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ANNUAL REPORT FOR YEAR 2015
PART V Business Discussion and Analysis
I. General
In 2015, the Company achieved operating revenue of RMB 650 million, decreasing by 8.79% and net profit
of RMB 91.64 million, decreasing by 58.07% compared with last year respectively. The decrease of revenue
and net profit was due to the decrease of business volume of offshore oil logistics services.
Offshore Oil Logistics Business
In 2015, international oil companies adjusted their exploration plan under the circumstance of the continued
downturn of oil price, which caused demand shrink for offshore oil logistics business. Meanwhile, CNOOC
Huizhou Base put into operation, its subsidiaries moved from Chiwan Base to Huizhou Base, which formed
serious challenges for the Company. In 2015, offshore oil logistics business achieved operating revenue of
RMB 166 million, decreasing by 51.03% and net profit of RMB 29.29 million, decreasing by 80.13%
compared with last year respectively.
Blogis Business
1. Main Operating Index of Blogis
Unit: RMB million
Revenue Net Profit
Parks Revenue Net Profit Occupation Rate（%）
Growth（%） Growth（%）
Shanghai Baowan 93.29 47.09 100.0 4.41 -12.34
Shanghai Mingjiang 55.63 24.96 100.0 4.20 -6.99
Kunshan Baowan 57.69 28.11 95.6 8.04 12.47
Langfang Baowan 25.92 6.77 88.2 -0.75 -19.24
Tianjin Baowan 57.79 22.55 100.0 4.27 5.76
Xindu Baowan 23.08 7.24 100.0 14.78 24.77
Longquan Baowan 60.75 19.23 98.4 44.44 52.09
Guangzhou Baowan 47.69 15.37 100.0 327.33 1922.37
Shenzhen Baowan 16.99 1.35 82.5 -8.91 -46.76
Nanjing Baowan 23.37 6.11 100.0 N/A N/A
Nantong Baowan 11.80 1.74 83.4 N/A N/A
Wuhan Baowan 10.18 0.29 78.0 N/A N/A
Note: The net profit of above-mentioned subsidiaries excludes interest expenses influence.
Note to the year-on-year change of the relevant data
(1) Change in net profit of Shanghai Baowan was mainly affected by income tax collection approach.
Eliminated income tax influence, net profit of Shanghai Baowan increased by 8.71% with good profitability.
(2) Net profit of Langfang Baowan decreased mainly due to achieving non-operating revenue in 2014.
(3) Revenue and net profit of Xindu Baowan increased mainly due to growth of distribution business.
(4) Revenue and net profit of Longquan Baowan increased mainly due to growth of distribution business
and granting government subsidy.
(5) Revenue and net profit of Guangzhou Baowan increased mainly due to operation of Plot A in December,
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ANNUAL REPORT FOR YEAR 2015
2014.
(6) Net profit of Shenzhen Baowan decreased mainly due to the decrease of business volume.
2. Blogis Development for 2015
In 2015, the Company signed Shaoxing project, Nanjing Gaoxin project, Nantong Xitong project, Jiashan
project, Beijng Shunyi project and Hubei Xiaogan project, which increased planned land of 2,000 Mu; got
land quota of 818 Mu, which include Chengdu oil and gas base, Chongqing Jiulongpo project, Hefei Feidong
project, Jiangyin project, etc.
3. Blogis Competition in 2016
The representatives as Prologis, Goodman, Alibaba and Vanke have accelerated their layout of logistics park.
The competition became more and more fierce. There were idle warehouses in some district in 2015 because
of the competition. It is expected to face pressure of rent price and idle warehouses in some district. In 2016,
it predicts a steady rise in warehousing price. But in some district like Tianjin and Langfang, the market
competition will become more intensive because of the supply surge. And the newly operation of Wuxi
Baowan, Zhenjiang Baowan in 2016 will face challenges in marketing work.
Offshore Engineering and Others
CSE: The Company holds 32% stake. CSE contributed an investment income of RMB 54.81 million to the
Company in 2015, decreasing by 5.3% compared with last year.
CPEC: The Company holds a 20% stake. CPEC affected investment income of RMB -229 million to the
Company.
China Development Finance Limited: The Company holds 20% stake. It contributed an investment income
of RMB 6.45 million to the Company in 2015.
Project Construction Development
1. Tianjin Bingang Baowan: The project plans to construct two warehouses and is expected to be finished
in the end of 2016.
2. Wuxi Baowan: The construction of five warehouses and one multiple-used building is expected to
complete and put into use in April 2016.
3. Zhenjiang Baowan: The construction of nine warehouses and one multiple-used building is expected to
complete and put into use in June 2016
4. Jiaxing Baowan: The construction of two warehouses and one multiple-used building is expected to
complete in the beginning of 2017.
5. Qingdao Jiaozhou Baowan: The construction of eight warehouses and one multiple-used building is
expected to complete in the first half year of 2017.
6. Chengdu Oil and Gas Base: The construction of one workshop and storage yard is expected to complete
in the end of 2016.
II. Main Business Analysis
1. General
Refer to relevant contents of ―1.General‖ in ―Business Discussion and Analysis‖.
2. Revenue and Cost
(1) Operating Revenue
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ANNUAL REPORT FOR YEAR 2015
Unit: RMB
2015 2014
Change (%)
Amount Ratio (%) Amount Ratio (%)
Total Operation Revenue 650,279,516.34 100% 712,958,603.26 100% -8.79%
By Industries
Warehouse and Storage 520,194,029.77 80.00% 459,420,777.75 64.44% 13.23%
Loading and Unloading Services 36,833,559.77 5.66% 118,875,200.46 16.67% -69.01%
Harbor Management 16,648,654.99 2.56% 65,928,619.94 9.25% -74.75%
Office Leasing and Other 76,603,271.81 11.78% 68,734,005.11 9.64% 11.45%
By Region
South China 230,792,194.04 35.49% 369,965,636.51 51.89% -37.62%
East China 241,763,609.53 37.18% 199,280,506.62 27.95% 21.32%
North China 83,714,820.72 12.87% 81,544,922.53 11.44% 2.66%
Southwest China 83,828,291.06 12.89% 62,167,537.60 8.72% 34.84%
Central China 10,180,600.99 1.57% - - -
(2) Situation of Industry, Project and District Occupying the Company‘s Business Income and Operation
Profit over 10%
Unit: RMB
Operating
Operating Cost Gross Profit
Revenue
Change over Rate Change
Operating Gross Profit Change over the Same over the Same
Operating Cost the Same
Revenue Rate (%) Period of Last Period of Last
Period of Last
Year（%） Year（%）
Year（%）
By Industries
Warehouse and
520,194,029.77 201,719,829.80 61.22% 13.23% 21.86% -2.75%
Storage
By Regions
South China 230,792,194.04 142,037,268.26 38.46% -37.62% -2.45% -22.19%
East China 241,763,609.53 72,779,107.58 69.90% 21.32% 29.87% -1.98%
North China 83,714,820.72 29,564,528.72 64.68% 2.66% 2.93% -0.09%
Southwest
83,828,291.06 44,424,116.39 47.01% 34.84% 51.67% -5.88%
China
Under the circumstance that the statistic specifications for the Companys principal business data
experienced adjustment in the report period, the principal business data upon adjustment of the statistic
specifications at the end of the report period in the latest year.
□ Applicable √ Inapplicable
(3) Whether the Company‘s physical sales income exceeded service income.
□ Applicable √ Inapplicable
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ANNUAL REPORT FOR YEAR 2015
(4) Implementation of Important Orders
□ Applicable √ Inapplicable
(5) Operating Costs
Unit: RMB
2015 2014
Industries Change (%)
Amount Ratio (%) Amount Ratio (%)
Warehouse and Storage 201,719,829.80 67.92% 165,537,486.60 63.75% 21.86%
Loading and Unloading Services 33,060,506.50 11.13% 45,155,722.90 17.39% -26.79%
Harbor Management 13,189,448.38 4.44% 15,751,307.76 6.07% -16.26%
Office Leasing and Other 49,032,730.20 16.51% 33,217,409.97 12.79% 47.61%
Total 297,002,514.88 100.00% 259,661,927.23 100.00% 14.38%
(6) Changes in Consolidated Scope
√ Yes □No
8 new subjects are combined into consolidated statement as follows:
Jiangsu Baowan International Logistic Co., Ltd., Shaoxing Baowan Logistic Co., Ltd., Chongqing Xipeng
Baowan International Logistic Co., Ltd., Wuhan Baowan Logistic Ezhou Co., Ltd., Nantong Xitong Baowan
Logistic Co., Ltd., Jiashan Baowan Logistic Co., Ltd., Chengdu Chiwan International Oil and Gas Base Co.,
Ltd., Zhengzhou Baohai International Logistic Co., Ltd.
(7) Important Change or Adjustment of Products or Services
□ Applicable √ Inapplicable
(8) Main Clients and Suppliers
Main Clients
Total Sales Revenue of Top 5 Clients (RMB) 155,286,609.96
Ratio of Top 5 sales revenue in 2015（%） 23.88%
Information of Top 5 Clients
Sales Revenue Ratio of sales
No. Client Name
(RMB) revenue in 2015（%）
1 Li & Fung Supply Chain Management (China) Co., Ltd. 47,219,110.20 7.26%
2 China Volkswagen 30,770,666.28 4.73%
3 Watson 27,441,975.05 4.22%
4 SF Express 26,658,303.10 4.10%
5 IKEA 23,196,555.33 3.57%
Total —— 155,286,609.96 23.88%
Information of other Clients
□ Applicable √ Inapplicable
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ANNUAL REPORT FOR YEAR 2015
3. Expenses
Unit: RMB
Y2015 Y2014 Change (%) Note
Due to the increase of
Sales Expenses 1,794,630.86 423,872.43 323.39%
intermediate fee
Administration Expenses 95,531,527.18 95,231,275.15 0.32%
Financial Expenses 165,115,346.59 146,278,726.91 12.88% Due to the increase of loans.
4. R&D
□ Applicable √ Inapplicable
5. Cash Flow
Unit: RMB
Item Y2015 Y2014 Change (%)
Subtotal of Cash Inflows from Operating Activities 730,547,455.76 789,021,847.18 -7.41%
Subtotal of Cash Outflows from Operating Activities 397,891,104.32 374,651,087.13 6.20%
Net Cash Flows from Operating Activities 332,656,351.44 414,370,760.05 -19.72%
Sub-total of Cash Inflows from Investing Activities 1,554,363,738.69 3,318,693,631.10 -53.16%
Subtotal of Cash Outflows from Investing Activities 1,867,812,310.11 3,717,951,989.47 -49.76%
Net Cash Flows from Investing Activities -313,448,571.42 -399,258,358.37 -21.49%
Subtotal of Cash Inflows from Financing Activities 516,134,281.57 773,231,859.98 -33.25%
Sub-total of Cash Outflows from Financing Activities 589,244,785.09 712,740,579.57 -17.33%
Net Cash Flows from Financing Activities -73,110,503.52 60,491,280.41 -220.86%
Net Increase in Cash and Cash Equivalents -54,206,934.45 75,423,491.55 -171.87%
Note to the year-on-year change of the relevant data
1. Net cash flows from operating activities decreased mainly due to the decrease of operating revenue and
increase of operating cost.
2. Net cash flow from investment decreased mainly due to the decrease of purchasing financial products.
3. Net cash flow from financing decreased mainly due to the decrease of newly-added loans.
Significant Difference between Cash Flows from Operating Activities and Net Profit in Reporting Period
□ Applicable √ Inapplicable
III. Non-core Business
√Applicable □Inapplicable
Unit: RMB
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ANNUAL REPORT FOR YEAR 2015
Ration in Explanation
Amount Sustainable (yes or no)
Profit
1. Investment income from 1. Investment income
joint-ventured companies of RMB from joint-ventured
58,968,248.51 companies: Yes
Investment Income 75,110,506.18 53.31%
2. Investment income from financial 2. Investment income
products of RMB 16,142,257.67. from financial products:
No
IV. Analysis on Assets and Liabilities
1. Significant Changes in Assets
Unit: RMB
December 31, 2015 December 31, 2014
Change
Ratio in Total Ratio in Total
Amount Amount （%）
Assets（%） Assets（%）
Cash and Cash Equivalents 321,121,926.73 5.69% 375,328,861.18 6.96% -1.27%
Accounts Receivable 50,257,814.22 0.89% 53,234,644.64 0.99% -0.10%
Inventories 914,543.44 0.02% 1,054,046.42 0.02% 0.00%
Investment Real Estate 1,425,593,724.71 25.26% 1,267,169,209.29 23.51% 1.75%
Long-term Investment on
582,600,360.74 10.32% 537,962,041.17 9.98% 0.34%
Stocks
Fixed Assets 842,722,056.06 14.93% 777,313,197.48 14.42% 0.51%
Construction-in-progress 368,965,477.50 6.54% 300,456,627.34 5.57% 0.97%
Short-term Borrowings 300,000,000.00 5.32% 0.00% 5.32%
Long-term Borrowings 489,834,250.45 8.68% 390,816,685.64 7.25% 1.43%
2. Assets and Liabilities Measured at Fair Value
□ Applicable √ Inapplicable
V. Investment
1. General
√Applicable □Inapplicable
Investment in 2015 (RMB) Investment in 2014 (RMB) Changes (%)
144,241,585.00 440,987,672.79 -67.29%
17
ANNUAL REPORT FOR YEAR 2015
2. Significant Equity Investment in the Report Period
√Applicable □Inapplicable
Invest Estima Profit in the
Main Equity Fund Term of Disclosure Disclosure
Company ment Amount (RMB) Partner Product Progress ted Report Lawsuit
Business Ratio Resource Investment Date Index
Mode Profit Period
Warehouse,
Nantong Xitong Loading & Newly Preparatory
66,996,585.00 100.00% Self-raised N/A 50 Years Logistics Services - - No 2015.09.26
Baowan Unloading Set Period
Services
Warehouse,
Loading & Newly Preparatory
Jiangsu Baowan 32,375,000.00 100.00% Self-raised N/A 30 Years Logistics Services - -13,700.62 No 2014.11.27
Unloading Set Period
Services
Warehouse,
Chengdu Oil and Loading & Newly Preparatory
31,820,000.00 100.00% Self-raised N/A Open-ended Logistics Services - -672,675.96 No 2015.02.26
Gas Base Unloading Set Period
Services Securities
Warehouse, Times,
Chongqing Loading & Newly Preparatory Hong
13,050,000.00 100.00% Self-raised N/A Open-ended Logistics Services - -5,113.87 No 2014. 02.18 Kong
Xipeng Baowan Unloading Set Period
Services Commerci
al Daily
Warehouse, and
Loading & Newly Preparatory
Shaoxing Baowan 0.00 100.00% Self-raised N/A 50 Years Logistics Services - -150.00 No 2015.08.31 website of
Unloading Set Period http://ww
Services w.cninfo.c
Warehouse, om.cn
Loading & Newly Preparatory
Jiashan Baowan 0.00 100.00% Self-raised N/A 50 Years Logistics Services - -247.50 No 2015.12.18
Unloading Set Period
Services
Warehouse, Qingdao
Zhengzhou Loading & Newly Haier Preparatory
0.00 80.00% Self-raised 50 Years Logistics Services - - No 2014.11.27
Baohai Unloading Set Develop Period
Services ment Co
Warehouse,
Loading & Newly Preparatory
Ezhou Baowan 0.00 100.00% Self-raised N/A 50 Years Logistics Services - - No 2015.06.09
Unloading Set Period
Services
Total -- -- 144,241,585.00 -- -- -- -- -- -- 0.00 -691,887.95 -- -- --
Note: The Company holds above-mentioned companies through Blogis Holding.
18
ANNUAL REPORT FOR YEAR 2015
3. Significant Non-equity Investment in the Report Period
□ Applicable √ Inapplicable
4. Financial Assets Investment
(1) Securities Investment
□ Applicable √ Inapplicable
(2) Derivatives Investment
□ Applicable √ Inapplicable
5. Application of Raised Capital
□ Applicable √ Inapplicable
VI. Sales of Major Assets and Equity
1. Sales of Major Assets
□ Applicable √ Inapplicable
2. Sales of Major Equity
□ Applicable √ Inapplicable
VII. Analysis of Main Subsidiaries and Investment Companies
Unit: RMB
Company Registered Operating Operating
Type Main Product or Service Total Asset Net Asset Net Profit
Name Capital Revenue Profit
Shanghai Warehouse, loading and 160,000,000.00
Subsidiary 263,625,644.18 200,895,155.04 93,286,000.19 62,820,113.84 47,093,744.63
Baowan unloading services
Shenzhen Warehouse, loading and 34,409,050.00
Subsidiary 60,056,406.72 54,693,346.44 16,990,480.43 1,791,041.27 1,353,003.27
Baowan unloading services
Tianjin Warehouse, loading and 150,000,000.00
Subsidiary 345,471,612.24 151,643,121.37 57,790,854.28 19,905,292.31 14,911,157.22
Baowan unloading services
Kunshan Warehouse, loading and 120,000,000.00
Subsidiary 219,403,891.70 129,026,110.06 57,686,715.97 31,576,142.42 25,305,623.07
Baowan unloading services
Langfang Warehouse, loading and 90,000,000.00
Subsidiary 182,761,069.61 90,877,317.56 25,923,966.44 3,521,531.22 2,549,909.43
Baowan unloading services
Xindu Warehouse, loading and 60,000,000.00
Subsidiary 126,192,736.72 57,716,903.58 23,081,778.70 4,881,734.47 3,679,919.69
Baowan unloading services
Longquan Warehouse, loading and 100,000,000.00
Subsidiary 268,093,360.91 101,301,666.31 60,746,512.36 11,595,897.28 10,846,357.80
Baowan unloading services
Guangzhou Warehouse, loading and 150,000,000.00
Baowan Subsidiary 426,931,978.98 149,673,946.18 47,685,831.07 7,774,889.93 5,724,449.45
unloading services
Shanghai Warehouse, loading and 120,000,000.00
Subsidiary 271,657,080.20 124,789,911.69 55,626,019.97 25,942,247.03 19,437,991.59
Mingjiang unloading services
Nantong 200,000,000.00 227,824,112.35 200,061,796.17 11,797,129.01 3,111,064.87 1,740,206.07
Baowan
Manufacturing steel
Investment
Sembawang products for offshore 253,386,000.00 1,595,186,181.75 1,408,812,225.68 568,666,851.49 194,567,430.14 171,275,757.70
Company
engineering, etc.
Investment Providing equipment
CPEC 22,845,500.00 37,866,322.74 15,563,341.76 65,789,872.06 -11,374,463.14 -11,425,276.06
Company maintenance services
China Investment
Development Company
Financial business 500,000,000.00 4,228,377,871.33 558,235,477.85 59,711,597.82 40,129,998.62 32,225,306.31
19
ANNUAL REPORT FOR YEAR 2015
Finance
Acquisition and Disposal of Subsidiaries in the Report Period
√ Applicable □ Inapplicable
Method of Acquisition and Disposal of
Name Impact on Operation
Subsidiaries
Nantong Xitong Baowan Newly Set In the preparatory period
Jiangsu Baowan Newly Set In the preparatory period
Chengdu Oil and Gas Base Newly Set In the preparatory period
Chongqing Xipeng Baowan Newly Set In the preparatory period
Shaoxing Baowan Newly Set In the preparatory period
Jiashan Baowan Newly Set In the preparatory period
Zhengzhou Baohai Newly Set In the preparatory period
Ezhou Baowan Newly Set In the preparatory period
Explanation of Main Subsidiaries and Joint-ventured Companies: Find the details in general of business
discussion and analysis.
VIII. Structured Bodies Controlled by the Company
□ Applicable √ Inapplicable
IX. Future Prospect of the Company
1. Competition Pattern and Development Trend
(1) Offshore Oil Logistics Services
The international oil price has kept falling, which would make offshore oil and oil service companies adjust
their oil exploitation plan and reduce production. Meanwhile, with the operation of CNOOC Huizhou
production base, it will bring great impact to operation of the oil logistics services. It is estimated that some
warehouses and storage yard of Chiwan Base will be idled and operation of loading and unloading services
will still shrink in 2016.
(2)Blogis Business
In 2015, logistics industry grew steadily. It was more difficult for the company to take land and the
intensified competition resulted the loss of customers. The Company will create new business including
e-commerce distribution and enhance the cooperation intention between local government and the Company.
2. Development Strategy
The Company is committed to be logistic enterprise with outstanding scale logistics parks throughout major
cities as well as various logistics services and be industrial leader in domestic petroleum logistics services
and integrated logistics services with continuous value creation for customers, shareholders, employees and
society.
(1) Offshore Oil Logistics Business
The Company will seize the opportunity of ―Qianhai Shekou FTA‖ to accelerate the transformation and
upgrading of offshore oil logistics business; continuously optimize marketing work and create new business
mode. In 2016, the Company will focus the following work: exploring upgrading program for offshore oil
logistics business and creating new business mode; making research of other outstanding park service
provider.
20
ANNUAL REPORT FOR YEAR 2015
(2) Blogis Business
Next three to five years the Company would accelerate the layout of logistics park network, covering main
cities all over the country with comprehensive and integrated logistics services system to develop into
industrial leading company with core competitiveness of large-scale logistics park network, high-level
integrated logistics services.
3. Operation Plan
This year is the key period of China‘s economic transformation. Logistics development would be impacted
greatly with decline of economic growth and adjustment of economy structure. Under such background, two
core business of the Company is facing a complicated situation of development, opportunities and challenges
coexisted. In order to realize the goal, the Company will closely around the theme of continuous innovation,
focus on business work as follows:
Offshore Oil Logistics Business: seizing the opportunity of approval of international oil and gas equipment
trading platform by Shenzhen government to promote the transformation of offshore oil logistics business ;
Blogis Business: strengthening customer management and other measures to maintain sustainable
development of Blogis.
4. Capital Requirement, Sources of Funds and the Usage Plan
On the premise of normal daily operations, the Company's demanded capital will be applied to land purchase,
development and construction of Baowan logistics parks as well as other projects through mergers,
acquisition or joint-venture, to ensure the steady development of the Company's main business. The capital
demands are planned to be resolved by way of equity fund, bank financing and returned funds from scrolling
project investments.
5. The Risk and Measures for Future Development
Under the circumstance of China's economic long-lasting healthy performance, two core businesses of the
Company would be expected to be more prosperous in future as well as the challenges and external risks
ahead.
Speeding up land acquisition is main foundation to the Company's long-term development. However, under
the background of joining of other developing agents and expanding domestic demand for lands, competition
for lands will be intensified.
The expansion of business scale along with larger capital requirement could lead to higher asset-liability ratio
and debt costs. The coexistence of slowdown in China's economic growth and inflation pressures, combined
with the rising cost of elements such as domestic land, labor, construction materials, and fuel would greatly
affect on the company profitability.
There is a need for highly-quality talent and competitive salaries and welfares system to realize the strategic
targets on the path of company‘s rapid growing. Combined with the development of internet and financial
industry and logistics, the transform of development cooperation of cross-border joint, competition and
business mode may likely change the profit mode of logistics industry.
The Company plans to carry out the following measures to achieve future development:
To strengthen immediate study of macro economy, policy trend and industrial development; continue to
strengthen centralized management of funds, improve efficiency of funds and reduce financial cost; At the
same time actively study and explore diverse financing way; to strengthen the research of extended business,
21
ANNUAL REPORT FOR YEAR 2015
management and incentive mechanism construction; continue to improve leading service management
standardization system of the industry; on the basis of guarantee of project quality, to strongly promote
progress plan, optimize engineering management cost and explore new mode of project management; to
further strengthen the construction and cultivation of talents, establish a training system of capacity
improvement.
X. Reception, Research and Interview in the Report Period
Type of
Time Method Disclosure Index
Visitors
2015.05.06 Field Research Institute www.cninfo.com.cn on May 7, 2015
2015.05.12 Field Research Institute www.cninfo.com.cn on May 13, 2015
2015.09.21 Field Research Institute www.cninfo.com.cn on September 22, 2015
Reception Times 3
Reception Institution Time 3
Reception Individual Time 0
Other 0
Whether disclosing undisclosed
N/A
information
22
ANNUAL REPORT FOR YEAR 2015
PART V Significant Events
I. Dividends Distribution
Implementation and Adjustment of Dividend and Cash Distribution Policy
√ Applicable □ Inapplicable
According to the requirements of the Shenzhen Securities Regulatory Commission and actual situation, 11th
Telecommunication Meeting of 6th Board and the Second Extraordinary Shareholders‘ Meeting in 2012 has
reviewed and approved the proposal on Revision of Articles of Association, which clearly defined allocation
principle and forms of profit distribution, proportion and condition of cash dividends, decision procedures
and so on.
During the course of demonstration and revision, independent directors have published independent opinions
on argumentation report for returns planning for shareholders. The Company also offered many method such
as telephone, email for small shareholders‘ opinions, which ensured the legitimate rights and interests of
small or middle shareholders.
The dividends distribution policy has no changed in report period.
Special Statement About the Cash Dividend Policy
In compliance with the Company‘s Articles of Association and the resolution of general meeting Yes
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors fulfilled their responsibilities and played their due role Yes
Minority shareholders have the chance to fully express their opinion and desire, and their legal rights
Yes
and interests were fully protected
In adjustment or alteration of the cash dividend policy, the conditions and procedures were in
Inapplicable
compliance with regulations and transparent.
Dividend distribution scheme for last 3 years
1. Dividends Distribution Plan for 2015: The Company has no plan to distribute cash dividend to the whole
shareholders.
2. Dividends Distribution Plan for 2014: Based on the total shareholders of 230,600,000 dated on December
31, 2014, the Company distributed cash dividend to all shareholders at RMB 1.29 (including tax) for every
10 shares amounted to RMB 29,747,400.00 in total.
3. Dividends Distribution Plan for 2013: The Company has no planned to distribute cash dividend to the
whole shareholders.
Cash dividend distributions for the last three years
Unit: RMB
Net Profit Attributed Ratio of Cash Dividend
to Common to Net Profit Ratio of Cash
Cash Dividends Shareholders of the Attributable to Common Cash Dividend in
Year Dividend in Other
Tax Included Company in Shareholders of the Other Forms
Forms
Consolidated Company in
Statement for the Consolidated
23
ANNUAL REPORT FOR YEAR 2015
Year Statement(%)
2015 0.00 91,644,920.49 0.00% 0.00 0.00%
2014 29,747,400.00 218,544,184.50 13.61% 0.00 0.00%
2013 0.00 204,249,571.44 0.00% 0.00 0.00%
In the report period, the Company‘s profit and profit available for distribution of parent company are both
positive, but the Company does not distribute cash dividend.
√ Applicable □ Inapplicable
The Use Plan for the Undistributed
Reason of the Company does not Distribute Cash Dividend
Cash Dividend
According to the development strategy, the Company will accelerate its
layout of logistics parks, in which the projects of Zhenjiang, Wuxi,
Qingdao, Chengdu are under construction and other potential projects The undistributed profit will be used in
the Company‘s operation and
are promoted. The development of these projects brings large demand
development.
for capital. Therefore, the Company will not distribute cash dividend to
the whole shareholders.
II. Pre-plan for Dividend Distribution and Turning Capital Reserve to Share Capital in
the Report Period.
□ Applicable √ Inapplicable
The Company has no plan to distribute cash dividend to the whole shareholders, nor turn capital reserve to
share capital.
III. Implementation of commitments
1. The commitments of the Company, its shareholders, actual controller, directors, supervisors, senior
management and other related parties fulfilled in the report period or ongoing at period-end.
√ Applicable □ Inapplicable
Commit
Promisee Type Content Beginning Time Limit Status
ments
Nanshan Other
to land use 1997-7-18 25 Years On duty
Group Commitment
Nanshan Other to resolve payment difficulties
2012-5-11 3 Yeas On duty
Group Commitment in opening the Finance Limited
Other to provide regular monthly
Other The Long term
Commitment financial reports to the 2007-10-25 On duty
Commit Company effective
controlling shareholder
ments
Commitment for About the issue of
The
Raised Funds "medium-term notes for 2012" 2012-3-7 5 Years On duty
Company
Commitment
The Other About the issue of "12 base
2012-12-17 7 Years On duty
Company Commitment debt" commitment
Fulfilling
commit
Yes
ments
timely
24
ANNUAL REPORT FOR YEAR 2015
2. Whether there had been an earnings forecast for an asset or project and the report
period was still within the forecast period, explain why the forecast has been reached for
the report period.
□ Applicable √ Inapplicable
IV. Non-operation Oriented Fund Occupancy by the Controlling Shareholder and/or
Related Parties
□ Applicable √ Inapplicable
V. Notes of the Board of Directors, the Board of Supervisors and Independent Directors
on the Unqualified Auditor’s Report Issued by CPAs.
□ Applicable √ Inapplicable
VI. Changes in Accounting Policy, Accounting Estimation and Way of Accounting in
Comparison with the Latest Annual Report
□ Applicable √ Inapplicable
VII. Retrospective Restatement Necessary for Correction of Significant Accounting
Errors during the Report Period
□ Applicable √ Inapplicable
VIII. Changes in Range of the Consolidated Statements in Comparison with the Financial
Report of the Previous Year.
√ Applicable □ Inapplicable
8 new subjects are combined into consolidated statement as follows:
Jiangsu Baowan International Logistic Co., Ltd., Shaoxing Baowan Logistic Co., Ltd., Chongqing Xipeng
Baowan International Logistic Co., Ltd., Wuhan Baowan Logistic Ezhou Co., Ltd., Nantong Xitong Baowan
Logistic Co., Ltd., Jiashan Baowan Logistic Co., Ltd., Chengdu Chiwan International Oil and Gas Base Co.,
Ltd., Zhengzhou Baohai International Logistic Co., Ltd.
IX. Engagement/ Disengagement of Certified Public Accountants
Certified Public Accountants Currently Engaged
Name Deloitte Touche Tohmatsu Certified Public Accountants LLP
Remuneration (RMB Million) 1.52
Successive Years Offering Auditing Services 4
Names of the Certified Public Accountants Li Weihua, Jiang Qishen
Has the CPAs been changed in the report period
□Yes √ No
Description of the CPAs, financial adviser or sponsor engaged for internal control auditing.
√ Applicable □ Inapplicable
In the report period, the Company appointed Deloitte Touche Tohmatsu CPA as internal control auditor for
25
ANNUAL REPORT FOR YEAR 2015
2015 with audit expense of RMB 460,000.
X. The Suspension or Termination of Listing
□ Applicable √ Inapplicable
XI. Bankruptcy and Recombination
□ Applicable √ Inapplicable
XII. Main Lawsuits and Arbitration Affairs
□ Applicable √ Inapplicable
XIII. Punishment and Rectification
□ Applicable √ Inapplicable
XIV. Honesty Condition of the Company and the Controlling Shareholders and Actual
Controller
√ Applicable □ Inapplicable
In the report period, there are no failure to perform the effective judgment of the court and nor unpaid debt.
XV. Execution of the Equity Incentive Plan, Employee Stock Ownership Plan or Other
Incentive Measures for Employees of the Company.
□ Applicable √ Inapplicable
XVI. Significant Related Transactions
1. Related transactions Involving Daily Operation
Approved Whether
Ratio of Market
Type of Price Amount Transactio Exceeded
Transac Pricing Same Price Disclos
Relationshi Related (Unit: (Unit: n Amount the Disclosure
tion p
Contents Principl Type of Settlement (Unit: ure
Transactio RMB RMB (Unit: Approved Date
Party e Transactio RMB Index
n Million) Million) RMB Amount
n (%) Million)
Million)
Renting Securiti
Nansha Parent Providing Office and Market Bank es
8.48 8.48 25.62% 7.33 Yes 8.48 2015.3.12
n Group Company Services Maintenance Price Settlement Times,
Services Hong
Kong
Renting
Comme
Land and
rcial
Nansha Parent Receiving Building, Market Bank
8.10 8.10 100.00% 4.42 Yes 8.10 2015.3.12 Daily,
n Group Company Services Receiving Price Settlement
www.cn
Power
info.co
Supply
m.cn
Total -- -- 16.58 -- 11.75 -- -- -- --
Large Amount Return of Goods N/A
Where the Company classifies and The Fourth Session of the Seventh Board of Directors approved the amount of RMB 13
estimates the total amount of routine million of routine related transactions with Nanshan Group for Year 2015. The actual amount
related transactions for the report of routine related transactions for Year 2015 is RMB 16.58 million, in which the amount of
period, explain the actual providing services is RMB 8.48 million and receiving services is RMB 8.10 million.
implementation during the report
period.
Explain why the transaction price is Inapplicable
greatly different from the market price
26
ANNUAL REPORT FOR YEAR 2015
2. Related Transactions of Assets Acquisition and Sales
□ Applicable √ Inapplicable
3. Important Related Transactions of Joint Investment
□ Applicable √ Inapplicable
4. Connected Claims and Liabilities
Did there exist any non-operational related rights of credit and liabilities
□ Yes √ No
5. Other Important Related Transaction
(1) Related Transaction of Extending the Period of Borrowing RMB 210 million from Nanshan (Hongkong)
by Huitong (HK)
The 17th Tele-communication Meeting of 7th Board of Directors and the First Extraordinary shareholder‘s
Meeting in 2015 have approved extending the period to 2 years of borrowing RMB 210 million from
Nanshan (Hong Kong) by Huitong(HK). The estimated interest expense is RMB 21 million.
(2) Related Transaction of Quitting Claim of 20% Equity of China Development Finance
The 17th Tele-communication Meeting of 7th Board of Directors and the First Extraordinary shareholder‘s
Meeting in 2015 have approved the Company quitting claim of 20% equity of China Development Finance.
The Company still holds 20% equity of China Development Finance. There is no negative effect for the
Company.
(3) Related Transaction of Providing Customized Warehousing Services to Loscam Packaging Equipment
Rental (Shanghai) Co., Ltd.
The 17th Tele-communication Meeting of 7th Board of Directors and the First Extraordinary shareholder‘s
Meeting in 2015 have approved Jiaxing Baowao providing customized warehousing services to Loscam
Packaging Equipment Rental (Shanghai) Co., Ltd. Jiaxing Baowan will provide warehouses and office
building with the area of 26,309 M2 in two phases, in which providing 13,805 M2 with 10 years contract in
phase one and 12,504 M2 with 7 years contract in phase two. Total amount of the contract is RMB 101.19
million.
(4) Related Transaction of Borrowing RMB 300 million from Nanshan Group by Blogis Holding
The 19th Tele-communication Meeting of 7th Board of Directors has approved Blogis Holding borrowing
RMB 300 million from Nanshan Group with interest rate of 4.35% and borrowing time limit of 1 year. The
estimated interest expense is RMB 13.05 million.
Disclosure of Important Connected Transaction
Announcement Disclosure Date Disclosure Website
Related Transaction of Extending the Period of Borrowing RMB 210
2015.09.26 www.cninfo.com.cn
million from Nanshan (Hongkong) by Huitong (HK)
Related Transaction of Quitting Claim of 20% equity of China
2015.09.26 www.cninfo.com.cn
Development Finance
Related Transaction of Providing Customized Warehousing Services
2015.09.26 www.cninfo.com.cn
to Loscam Packaging Equipment Rental (Shanghai) Co., Ltd.
27
ANNUAL REPORT FOR YEAR 2015
Related Transaction of Borrowing RMB 300 million from Nanshan
2015.12.18 www.cninfo.com.cn
Group by Blogis Holding
XVII. Important Contracts and Implementation
1. Custodian, Contracting and Lease
(1) Custodian
√ Applicable □ Inapplicable
Entrusted Operation of Hefei Logistics Park
Hefei Baowan international logistics center was invested by Nanshan Group, which is positioned as an
international logistics business complex. It includes warehousing and logistics park, international exhibition
and trade center of high-end goods, logistics base for corporate headquarters etc. The business model of
Hefei Baowan is similar to Baowan Holdings. To avoid competition and improve BLOGIS nationwide
network layout, approved by the sixteenth tele-communication of 6th Board of Directors, Baowan holding
was entrusted to operate Hefei logistics park until December 31, 2014. The entrusted management term will
automatically extend for 1 year if both parties agree. Until now, Hefei Logistics Park needs to pay the
management fee amounted to RMB 0.3977 million for 2015.
(2) Contracting
□ Applicable √ Inapplicable
(3) Lease
□ Applicable √ Inapplicable
2. Significant Guarantee
√ Applicable □ Inapplicable
（1）Guarantee
Unit: ‘0000
Outward guarantees (excluding guarantee to the subsidiaries)
Total amount of guarantee to the
Total guarantee quota approved in
subsidiaries actually incurred in the
the reporting period (A1)
reporting period （A2）
Total guarantee quota approved at Total balance of actual guarantee to
the end of the reporting period the subsidiaries at the end of the
（A3） reporting period （A4）
Guarantees to the Subsidiaries
Date of
Guarantee
Occurrence Actual
Names of Disclosure Guarantee Implementation to Related
(date of Amount of Type Period
Guarantees Date Amount Status Party?
agreement Guarantee
(Y/N)
execution)
Guangzhou Baowan 2013.07.05 20,500.4 2014.04.18 8,565.25 Irrevocable 15Years N/A N
Nanjing Baowan 2013.07.05 20,113.6 2014.05.28 6,499.08 Irrevocable 15Years N/A N
Wuhan Baowan 2014.04.24 19,340 2014.11.03 5,534.95 Irrevocable 15 Years N/A N
Tianjin Bingang
2012.10.29 19,340 Irrevocable N/A N
Baowan
Total guarantee quota to the Total amount of guarantee
0 8,005.12
subsidiaries approved in the to the subsidiaries actually
28
ANNUAL REPORT FOR YEAR 2015
reporting period incurred in the reporting
（B1） period （B2）
Total balance of actual
Total guarantee quota to the
guarantee to the subsidiaries
subsidiaries approved at the end
of the reporting period 79,294 at the end of the reporting 20,599.29
period
（B3）
（B4）
Guarantees Between Subsidiaries
Total guarantee quota to the Total amount of guarantee
subsidiaries approved in the to the subsidiaries actually
0 incurred in the reporting 0
reporting period
（C1） period （C2）
Total balance of actual
Total guarantee quota to the
guarantee to the subsidiaries
subsidiaries approved at the end
of the reporting period 0 at the end of the reporting 0
period
（C3）
（C4）
The Companys total guarantee
Total amount of guarantee
Total guarantee quota approved in
actually incurred in the
the reporting period 0 8,005.12
reporting period
（A1+B1+C1）
（A2+B2+C2）
Total guarantee quota already Total balance of the actual
approved at the end of the guarantee at the end of the
79,294 20,599.29
reporting period reporting period
（A3+B3+C3） （A4+B4+C4）
Actual total guarantee (A4+ B4)/ Net Assets of the Company 11.74%
In which:
Guarantee quota for shareholders, actual controller and
0
related parties (D)
Guarantee quota directly and indirectly for companies with
0
asset-liability ratio over 70% (E)
Guarantee quota exceeding 50% of net assets (F) 0
Total amount of D+E+F 0
Notes to Guarantee in Complex Method: Inapplicable
(2) Illegal Guarantee
□ Applicable √ Inapplicable
3. Entrusted Others for Cash Management
(1)Entrusted Financing
√ Applicable □ Inapplicable
Unit: RMB‘0000
Connec Actual
Determi Expecte
Trust ted Amoun Beginning Ending Revenue in Actual
nation of d Revenue
Party Transac t Date Date This Report
Reward revenue
tion Period
N/A 5,000 2014.07.16 2015.01.07 Cash 5,000 136.64 5.47
N/A 4,000 2014.08.05 2015.02.05 Cash 4,000 112.92 22.09
China
Merchants N/A 8,000 2014.10.30 2015.03.03 Cash 8,000 144.04 72.02
Bank N/A 5,000 2014.11.19 2015.01.22 Cash 5,000 46.03 15.82
N/A 5,800 2014.12.31 2015.01.21 Cash 5,800 14.17 14.17
29
ANNUAL REPORT FOR YEAR 2015
N/A 14,500 2015.01.09 2015.04.01 Cash 14,500 175.9 175.9
N/A 11,800 2015.01.27 2015.05.12 Cash 11,800 183.3 183.3
N/A 3,000 2015.02.06 2015.05.03 Cash 3,000 9.75 9.75
N/A 2,000 2015.03.04 2015.03.18 Cash 2,000 3.25 3.25
N/A 5,000 2015.03.06 2015.08.21 Cash 5,000 121.96 121.96
N/A 4,300 2015.04.03 2015.09.29 Cash 4,300 115.97 115.97
N/A 8,000 2015.04.03 2015.07.31 Cash 8,000 140.83 140.83
N/A 5,000 2015.04.08 2015.05.13 Cash 5,000 20.36 20.36
N/A 1,000 2015.04.08 2015.09.23 Cash 1,000 18.61 18.61
N/A 3,000 2015.05.13 2015.08.05 Cash 3,000 35.9 35.9
N/A 8,000 2015.05.15 2015.09.11 Cash 8,000 137.06 137.06
N/A 5,000 2015.05.27 2015.08.05 Cash 5,000 40.74 40.74
N/A 5,000 2015.08.05 2015.11.18 Cash 5,000 47.31 47.31
N/A 2,500 2015.07.23 2016.01.20 Cash 0 58.27 52.15
N/A 10,000 2015.08.05 2015.10.12 Cash 10,000 81.96 81.96
N/A 3,000 2015.08.13 2016.02.10 Cash 0 63.97 49.47
N/A 4,500 2015.08.26 2015.11.25 Cash 4,500 48.23 48.23
N/A 6,000 2015.09.14 2015.10.19 Cash 6,000 23.01 23.01
N/A 6,000 2015.09.14 2016.10.19 Cash 6,000 23.01 23.01
N/A 5,000 2015.09.30 2016.01.06 Cash 0 43.87 40.95
N/A 13,000 2015.10.14 2016.01.20 Cash 0 106.46 83.65
N/A 6,000 2015.10.21 2015.11.18 Cash 6,000 14.03 14.03
N/A 5,000 2015.10.21 2015.11.18 Cash 5,000 11.7 11.7
Bank of N/A 800 2014.09.17 2015.01.05 Cash 800 9.64 0.43
China N/A 10,400 2014.12.25 2015.01.06 Cash 10,400 12.31 5.13
Total 175,600 - - - 152,100 2,001.2 1,614.23
Capital Resource Short term idle fund
Unrecovered Principal and
0
Revenue
Board Resolution Disclosure 2014.04.24
Date 2015.04.30
Note: Types of financial products are break –even financing products.
(2) Entrusted Loans
□ Applicable √ Inapplicable
4. Other Significant Contracts
□ Applicable √ Inapplicable
XIII. Other Significant Events
√ Applicable □ Inapplicable
1. Bidding for the Project of Brunei International Oil and Gas Service Base
The 12th telecommunication meeting of 7th Board of Directors has approved the Company bidding for the
project of Brunei international oil and gas service base. The details were published on Securities Times,
Hong Kong Commercial Daily and website of http://www.cninfo.com.cn on February 26, 2015.
30
ANNUAL REPORT FOR YEAR 2015
Until now, in view of the persistent slide in petroleum price, the local government of Brunei has not declared
the bidding result.
2. Conversion of B-Share to H-Share
The 12th telecommunication meeting of 7th Board of Directors has approved the Proposal for Delisting of
Domestically Listed Foreign Shares from Shenzhen Stock Exchange & Changing to Be Listed and Traded on
the Main Board of Stock Exchange of Hong Kong Limited by Way of Introduction & Issuance of H-share Of
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. The details were published on Securities Times, Hong
Kong Commercial Daily and website of http://www.cninfo.com.cn on April 25, 2015.
Until now the Company does not disclose the official proposal of conversion of B-share to H-share nor
provide the proposal to Shareholders‘ Meeting for approval.
3. Ezhou Baowan Logistics Park
Approved by 15th telecommunication meeting of 7th Board of Directors, Blogis Holdings intends to invest
and construct logistic park in Ezhou, covering an area of 735 Mu with the initial investment of RMB 525
million. To operate and manage the above project, Blogis Holdings has registered Wuhan Baowan Logistics
Ezhou Co. Ltd. with registration capital of 50 million.
The details were published on Securities Times, Hong Kong Commercial Daily and website of
http://www.cninfo.com.cn on June 6 and September 2, 2015.
4. Shaoxing Baowan Logistics Park
Approved by 16th telecommunication meeting of 7th of Board of Directors, Blogis Holdings intends to
invest and construct logistic park in Shaoxing, covering an area of 300 Mu with the initial investment of
RMB 356 million. To operate and manage the above project, Blogis Holdings has registered Shaoxing
Baowan Logistics Co. Ltd. with registration capital of 100 million.
The details were published on Securities Times, Hong Kong Commercial Daily and website of
http://www.cninfo.com.cn on August 31 and November 6, 2015.
5. Nantong Xitong Baowan Logistics Park
Approved by 17th telecommunication meeting of 7th Board of Directors, Huitong (H.K.) intends to invest
and construct logistic park in Nantong, covering an area of 213.4 Mu with the initial investment of RMB 213
million. To operate and manage the above project, Blogis Holdings has registered Nantong Xitong Baowan
Logistics Co. Ltd.
The details were published on Securities Times, Hong Kong Commercial Daily and website of
http://www.cninfo.com.cn on September 26, 2015.
6. Xiaogan (Linkong)Baowan Logistics Park
Approved by 19th telecommunication meeting of 7th Board of Directors, Blogis Holdings intends to invest
and construct logistic park in Xiaogan, covering an area of 474 Mu with the initial investment of RMB 505
million. To operate and manage the above project, Blogis Holdings will register Baowan Logistics Xiaogan
(Linkong) Co. Ltd.
The details were published on Securities Times, Hong Kong Commercial Daily and website of
http://www.cninfo.com.cn on December 18, 2015.
7. Purchasing Assets from Jiangjin(Zhejiang) Furniture Co., Ltd. and Constructing Logistics Park
31
ANNUAL REPORT FOR YEAR 2015
Approved by 19th telecommunication meeting of 7th of the Board, Blogis Holdings intends to purchase
assets from Jiangjin (Zhejiang) Furniture Co., Ltd and construct logistic park. The total area of the project is
250 Mu, in which 220 Mu is from purchasing assets from Jiangjin Furniture, with the initial investment of
RMB 339 million, in which RMB 125 million is for purchasing assets from Jiangjing Furniture. To operate
and manage the above project, Blogis Holding has registered Jiashan Baowan Logistics Co., Ltd. with
registration capital of RMB 30 million.
The details were published on Securities Times, Hong Kong Commercial Daily and website of
http://www.cninfo.com.cn on December 18 and December 25, 2015.
8. Purchasing 100% Equity of Beijing Jinmu Caoye Co., Ltd. and Constructing Logistics Park
Approved by 19th telecommunication meeting of 7th of the Board, Blogis Holdings intends to purchase 100%
Equity of Beijing Jinmu Caoye Co., Ltd. with the expense of no more than RMB 275 million and construct
logistic park with the expense of RMB 13.99 million. Till now, the registration procedures were finished and
Blogis Holding held 100% shares of Beijing Jinmu Caoye Co., Ltd.
The details were published on Securities Times, Hong Kong Commercial Daily and website of
http://www.cninfo.com.cn on December 18, 2015 and April 7, 2016.
XIX. Significant Events of Subsidiaries
√ Applicable □ Inapplicable
Please find the details in XIII. Other Significant Events.
XX. Social Responsibilities
□Applicable √ Inapplicable
XXI. Corporate Bonds
There was the public issued corporate bonds that listed on the stock exchange which neither to expire on the
approval quote date of the annual report nor to pay in full amount when expired.
1. Basic Information of the corporate bonds
Bond
Abbreviatio Interest Ways of Debt
Name Code Issue Date Due Date Balance
n Rate Service
(RMB 0000)
To pay interest
2012 corporate bonds of
once a year and
Shenzhen Chiwan 12 Chiwan
112140 2012.12.17 2019.12.17 57,000 5.78% to pay for the
Petroleum Supply Base Base Bonds
principal at one
Co., Ltd.
time
Exchange Place for the Listing or
Shenzhen Stock Exchange
Transfer of the Corporate Bonds
Eligibility Management of Investors Inapplicable
Situation of the Interest Payment of
the Corporate Bonds during the The Company had paid for the bonds interests in cash on the interest date
Report Period
Execution of relevant regulations if
the corporate bonds were affiliated
with the special regulations such as
Inapplicable
the options of the issuers or the
investors as well as exchangeable
regulations. (if applicable)
2. List of the Bonds Trustees and the Credit Rating Organization
32
ANNUAL REPORT FOR YEAR 2015
Bonds Trustees：
Room 1608, China Life Insurance
Huarong Securities Co., Office Contact Yuan Contact
Name Building, Chaoyang District, 010-85556464
Ltd. Address Person Dong Number
Beijing
Credit Rating Organization Tracked and Rated the Corporate Bonds during the Report Period：
8F, An Ji Building, No. 760 South Xizang Road,
Name China Chengxin Securities Rating Co., Ltd. Office Address
Huangpu District, Shanghai
3. List of the Usage of the Raised Funds of the Corporate Bonds
Usage and Execution Process of the Bonds Raised
The Company used the raised funds strictly followed the regulation.
Funds of the Company
Closing Balance (RMB10,000‘) 0
Operation of the Special Account of the Raised Funds The Company did not create special account for the bonds.
The usage of the raised funds whether met with the
committed usage, usage plans and other agreements on Yes
the specification.
4. List of the Rating of the Corporate Bonds Information
CCXR maintained the credit rating of ―12 Chiwan Base Bonds‖ of AA+ as well as the credit rating of the
main body of the Company of AA with the stable rating outlook.
5. Credit Supplement Mechanism, Repayment Plans and Other Repayment Guarantee Measures of
the Corporate Bonds
In the report period, there were no changes of credit supplement mechanism, repayment plans or other
repayment guarantee measures of the Corporate Bonds.
The Company‘s controlling shareholder, Nanshan Group, provided guarantee for the Corporate Bonds. By
the end of 2015, Nanshan Group‘s net assets were RMB 8.3 billion; assets-liabilities ratio was 58.09%;
return on equity was 11.62%; current ratio was 163.62%; and quick ratio was 68.38%. The above-mentioned
data was unaudited. The amount of external guarantee of Nanshan Group was RMB 1.99 billion, 23.92% of
its net assets.
6. List of the Holder Conference of the Bonds during the Report Period
In 2015, the Company had not involved in any event needed to convene the Bondholders‘ Meeting and had
not convened any of that meeting.
7. List of the Duties Performance of the Bonds Trustee during the Report Period
In the report period, bonds trustee performed their duties according to related regulation, including
supervising the usage of raised funds, continuously paying attention to the Company‘s creditability, etc.
8. Major Accounting Data and Financial Index of the recent 2 years of the Company
Unit: RMB Ten Thousand Yuan
Item 2015 2014 Changes
EBITDA 45,803 55,314 -17.19%
Net Cash Flows from Investing
-31,344.86 -39,925.84 -21.49%
Activities
Net Cash Flows from Financing
-7,311.05 6,049.13 -220.86%
Activities
Closing Balance of Cash and Cash
32,112.19 37,532.89 -14.44%
Equivalents
Current Ratio 42.00% 104.00% -62.00%
33
ANNUAL REPORT FOR YEAR 2015
Asset-liability Ratio 63.30% 63.11% 0.19%
Quick Ratio 42.00% 103.00% -61.00%
Total Debt Ratio of EBITDA 13.00% 16.00% -3.00%
Times Interest Earned 1.79 2.62 -31.68%
Times Interest Earned of Cash 3.59 3.93 -8.65%
Times Interest Earned of EBITDA 2.65 3.32 -20.18%
Loan Repayment Rate 100.00% 100.00% 0.00%
Interest Coverage 100.00% 100.00% 0.00%
Note to the year-on-year change of the relevant data
√ Applicable □ Inapplicable
1. Decrease of net cash flows from financing activities was due to the decrease of new-added loans in the
report period.
2. Decrease of current ratio and quick ratio was because the loans of RMB 700 million from Nanshan Group
would be due in November 2016 and made it from non-current liability to current liability.
3. Decrease of times interest earned was due to the decrease of revenue and net profit of the Company.
9. List of the Restricted Assets Right up to the Report-end
Inapplicable
10. List of the Interest Payment of Other Bonds and Bonds Financing Instruments during the Report
Period
The Company had paid interest of medium-term notes of RMB 24 million on March 9, 2015.
11. List of the Acquired Bank Credit Lines, Usage and Repayment of the Bank Loans
The amount of the newly acquired bank credit lines during the report period was of RMB 1700 million, in
which Ping An Bank of RMB 300 million, China Minsheng Bank of RMB 400 million, China Development
Finance of RMB 1000 million. Borrowing within the quota of 2015 was RMB 300 million.
In 2015, the Company paid back loans of RMB 300 million to Nanshan Group and RMB 100 million to
China Merchants Bank.
12. List of the Execution of the Agreement or the Commitment Related to the Corporate Bonds
Raising Specification during the Report Period
The raised funds of RMB 570 million had used up in 2013.
13. Significant Events Occurred during the Report Period
N/A
14. Whether There Was Guarantor of the Corporate Bonds
√ Yes □No
Whether the Guarantor of the Corporate Bonds was Business Entity or Other Organizations
√ Yes □No
Whether Disclose Guarantor‘s Financial Report.
√ Yes □No
34
ANNUAL REPORT FOR YEAR 2015
PART VI Changes in Capital Stock and Shareholders
I. Changes in Capital Stock
1. Changes in Capital Stock
Unit: Share
Before Changes Changes in Shares（＋，－） After Changes
New Conversion
Bonus of Reserves
Shares Ratio Shares Others Subtotal Shares Ratio
Shares
Issued to Shares
1.Non-tradable
119,420,000 51.79% 119,420,000 51.79%
Shares
a. Promoters‘
119,420,000 51.79% 119,420,000 51.79%
Shares
Ownership by
Domestic Legal 119,420,000 51.79% 119,420,000 51.79%
Entities
2.Tradable shares 111,180,000 48.21% 111,180,000 48.21%
B shares 111,180,000 48.21% 111,180,000 48.21%
3.Total 230,600,000 100% 230,600,000 100%
Reason of Changes in Capital Stock
□ Applicable √ Inapplicable
Approval of Changes in Capital Stock
□ Applicable √ Inapplicable
Transfer of Change in Capital Stock
□ Applicable √ Inapplicable
Change in capital stock‘s impacts on basic EPS and diluted EPS in recent year and recent issue, and net
assets per share attributed to equity shareholder and financial index etc.
□ Applicable √ Inapplicable
Other contents were necessary to the Company or the securities regulators required to be disclosed.
□ Applicable √ Inapplicable
2. Changes of Non-tradable Shares
√ Applicable □ Inapplicable
Unit: Share
Non-tradable Releasing Increasing Non-trada Date of
Name of Shares at the Non-tradable Non-tradable ble Shares Releasing
Restricted Reason
Shareholder Beginning of Shares in the Shares in the at the End Non-tradable
Y2015 Report Period Report Period of Y2014 Shares
Fan Zhaoping 8,700 0 18,750 27,450 Senior management locking shares 2016-7-11
Liu Wei 41,925 41,925 0 0 Senior management locking shares 2015-10-13
35
ANNUAL REPORT FOR YEAR 2015
Ren Yongping 67,500 67,500 0 0 Senior management locking shares 2015-9-10
Yu Zhongxia 48,887 0 0 48,887 Senior management locking shares -
Fu Jialin 53,325 53,325 0 0 Senior management locking shares 2015-12-19
Zhang Xiang 48,530 0 0 48,530 Senior management locking shares -
Total 268,867 162,750 18,750 124,867 -- --
II. Issuing and Listing
1. Issuance of Securities during the Report Period
□Applicable √Inapplicable
2. Changes of Total Shares, Shareholders’ Structure, Asset and Liability Structure
□Applicable √Inapplicable
3. Shares Holding by Employees
□Applicable √Inapplicable
III. Shareholders and Actual Controller
1. Particulars about Shareholders and Shares Holding
Unit: Share
Total Number of
Preference
Total Number of
Total Number of Shareholders with
Total Preference Shareholders
Shareholders One Resumed Voting
Shareholders in 7,070 6,971 with Resumed Voting 0 0
Month before Annual Rights at Previous
Reporting period Rights at Period-end (if
Report Disclosure Month-end of this
any)
Report‘s Disclosure
(if any)
Particulars about Shareholders with 5% or above /Top Ten Common Shareholders
Impawned or
Change in Frozen Shares
Ratio Total shares Non-tradabl Tradable
Name Nature the report
（％） held e shares shares Status Shares
period
CHINA NANSHAN
Domestic Legal
DEVELOPMENT (GROUP) 51.79% 119,420,000 0 119,420,000 0 - 0
Person
INCORPORATION
China Logistics Holding (12) Foreign Legal
19.90% 45,890,000 0 0 45,890,000 - Unknown
PTE.LTD. Person
CHINA MECHANTS
State-owned
SECURITIES 1.46% 3,614,224 253,156 0 3,614,224 - Unknown
Legal Person
(HONGKONG) LTD
CREDIT SUISSE (HONG Foreign Legal
0.81% 2,654,699 0 2,654,699 - Unknown
KONG) LIMITED Person
GUOTAI JUNAN
Foreign Legal
SECURITIES(HONGKONG) 0.55% 2,542,041 1,266,299 0 2,542,041 - Unknown
Person
LIMITED
GREENWOODS CHINA Foreign Legal
0.43% 984,693 0 0 984,693 - Unknown
ALPHA MASTER FUND Person
Domestic
LI WEI 0.36% 600,000 0 600,000 - Unknown
Natural Person
Domestic
SHA SHU LI 0.33% 480,611 290,010 0 480,611 - Unknown
Natural Person
Foreign Natural
YU LING FENG 0.30% 458,083 0 458,083 - Unknown
Person
36
ANNUAL REPORT FOR YEAR 2015
Domestic
PAN BO 0.27% 419,900 3,600 0 419,900 - Unknown
Natural Person
Strategic Investors of General Legal Person
Become Top Ten Shareholders Due To Share N/A
Issued
Among the top ten shareholders, the domestic legal entity shareholder, China
Nanshan Development (Group) Incorporation has no affiliated relations with other
Explanation for the Affiliated Relations or shareholders and does not fall into the scope of united action person stipulated by
United Action of the Top Ten Shareholders ―Regulation of Information Disclosure of the Change of Shareholding of listed
company‖. It is unknown that whether other tradable-share shareholders fall into
the scope of united action person.
Top Ten Tradable Shareholders
Type
Name Shares Held
Type Shares
China Logistics Holding (12) PTE.LTD. 45,890,000 B 45,890,000
CHINA MECHANTS SECURITIES (HONGKONG) LTD 3,614,224 B 3,614,224
CREDIT SUISSE (HONG KONG) LIMITED 2,654,699 B 2,654,699
GUOTAI JUNAN SECURITIES(HONGKONG) LIMITED 2,542,041 B 2,542,041
GREENWOODS CHINA ALPHA MASTER FUND 984,693 B 984,693
LI WEI 600,000 B 600,000
SHA SHU LI 480,611 B 480,611
YU LING FENG 458,083 B 458,083
PAN BO 419,900 B 419,900
LI MING YA 402,580 B 402,580
Statement on Associated Relationship or Consistent Action among the It is unknown that whether other tradable-share
Above Shareholders shareholders fall into the scope of united action person.
Remarks on Shareholders Involved in Securities Margin Trading N/A
Whether shareholders appointed repurchase transaction during reporting period
□ Yes √ No
2. Controlling Shareholder
Characteristic of Controlling Shareholder: Uncertain
Type of Controlling Shareholder: Legal Entity
Legal
Establishing Organizatio Register
Name Representa Main Business
Date n Code Capital
tive
Land development, port
service and transportation, as
China Nanshan
September 28, RMB well as related industry,
Development (Group) Yu Liming 61883297-6 900,000,000
1982 commerce, real estate and
Incorporation
tourism and bonded
warehouse.
Equity in other domestic
and foreign listed
companies held by the
32.52% equity in Chiwan Wharf (000022) and 75.78% equity in Nanshan Holding
controlling shareholder by
(002314).
means of control and
mutual shareholding in the
reporting period
Change of Controlling Shareholder in the Report Period
37
ANNUAL REPORT FOR YEAR 2015
□ Applicable √ Inapplicable
3. Actual Controller
Characteristic of Actual Controller: Domestic Organization
Type of Actual Controller: Legal Entity
Legal
Establishing Organizatio Register
Name Representa Main Business
Date n Code Capital
tive
Land development, port
service and transportation, as
China Nanshan
September 28, RMB well as related industry,
Development (Group) Yu Liming 61883297-6 900,000,000
1982 commerce, real estate and
Incorporation
tourism and bonded
warehouse.
Equity in other domestic
and foreign listed
companies held by the
32.52% equity in Chiwan Wharf (000022) and 75.78% equity in Nanshan Holding
controlling shareholder by
(002314).
means of control and
mutual shareholding in the
reporting period
Change of Actual Controller in the Report Period
□ Applicable √ Inapplicable
Chart of Actual Controller and the Company
38
ANNUAL REPORT FOR YEAR 2015
State-Owned Assets
Supervision and
Administration
Commission of the
State Council
100％
China Merchants State-Owned State-Owne China National
Assets d Assets Offshore Oil
Group
Supervision Supervision Corporation
54.95％ and and 100％
Administrati Administrat
China Merchants on ion
Holdings Commission Commissio
(International) of Shenzhen n of
Company Limited Municipal Guangdong
100％ Government Province
100％ 100％
China Silverflo Shenzh Guangdon China China HK
Mercha w Co., en g National Ocean Clifford
nts Ltd. Investm Petro-Trad Offshor Oilfiel Wong
(Nansha ent e e Oil ds Investmen
n)Holdi Holding Developm Investm Servic t Co.,Ltd
ngs s Co., ent ent es
Ltd Ltd. Corporatio Co.,Ltd (Hong
n Kong)
Limite
0.50% d
7.83% (COO 3.92%
36.52% S)
26.10 Development (Group) Incorporation 1.64%
China Nanshan
% 23.49
%
51.79%
Shenzhen Chiwan Petroleum Supply Base Co. Ltd. 48.21% Tradable
Shareholder
s (B
Shares)
Actual Controller controlled the Company by trust or other asset management method.
□ Applicable √ Inapplicable
4. Other shareholders with more than 10% shares
Registered
Shareholder‘s Name Legal Representative Establishing Date Main Business
Capital
CHINA LOGISTICS
SCHUTTE STEPHEN
HOLDING(12) PTE. KENT
2010.11.11 USD 100 Investment
LTD
IV. The Restricted Underweight of the Shares of Controlling Shareholder, Actual
Controller, Restructuring Parties and the Other Committed Party
□ Applicable √ Inapplicable
39
ANNUAL REPORT FOR YEAR 2015
PART VII Particulars about Preferred Share
□ Applicable √ Inapplicable
40
ANNUAL REPORT FOR YEAR 2015
PART VIII Directors, Supervisors, Senior Management and Staff
I. Changes of Shares held by Directors, Supervisors and Senior Management
Shares
Shares Held
Starting Date Expiry Date Held on
Name Position Office Status Gender Age of Tenure of Tenure on Jan 1, Increase Decrease
Dec 31,
2015
2015
Tian Junyan Chairman In Office Male 53 2010.5.13 2016.5.20 0 0 0 0
Vice
Ming Zhi Mei In Office Male 43 2011.4.20 2016.5.20 0 0 0 0
Chairman
Wang Shiyun Director/ GM In Office Male 49 2015.6.30 2016.5.20
Kent Yang Director In Office Male 47 2011.4.20 2016.5.20 0 0 0 0
Director/Depu
Shu Qian In Office Male 39 2013.5.20 2016.5.20 0 0 0 0
ty GM
Independent
He Liming In Office Male 62 2013.5.20 2016.5.20 0 0 0 0
Director
Independent
Chen Weijie In Office Male 65 2013.5.20 2016.5.20 0 0 0 0
Director
Independent
Chen Shujun In Office Male 48 2013.5.20 2016.5.20 0 0 0 0
Director
Independent
Yu Xiufeng In Office Male 51 2013.5.20 2016.5.20 0 0 0 0
Director
Supervisor
Zhang Jianguo In Office Male 51 2013.5.20 2016.5.20 0 0 0 0
Convenor
Chen Hong Supervisor In Office Male 56 2012.6.1 2016.5.20 0 0 0 0
Li Hongwei Supervisor In Office Male 48 2011.4.20 2016.5.20 0 0 0 0
Chen Lei Supervisor In Office Male 39 2011.4.20 2016.5.20 0 0 0 0
Sun Yuhui Supervisor In Office Female 41 2013.5.20 2016.5.20 0 0 0 0
Huang
Supervisor In Office Male 59 2013.5.20 2016.5.20 0 0 0 0
Ronghui
Wang
Deputy GM In Office Male 58 2011.2.21 until now 0 0 0 0
Jianjiang
Deputy GM/
Yu Zhongxia Financial In Office Female 52 2011.11.21 until now 65,182 0 0 65,182
Controller
Zhang Xiang Deputy GM In Office Male 51 2014.4.22 until now 64,706 0 0 64,706 0
Board
Song Tao In Office Male 37 2012.3.26 until now 0 0 0 0
Secretary
Fan Zhaoping Director Resign Male 62 2010.5.13 2016.1.7 11,600 25,000 9,150 27,450
Liu Wei Director/ GM Resign Male 50 2012.6.1 2016.4.13 55,900
Ren Yongping Director Resign Male 63 2009.5.15 2015.3.10 90,000
Fu Jialin Deputy GM Resign Male 54 2011.11.21 2015.6.19 71,100
Total -- -- -- -- -- -- 358,488 25,000 9,150 157,338
II．Changes of Directors, Supervisors and Senior Management
Name Post Type Date Reason
Ren Yongping Director Resign 2015.3.10 Resign
Liu Wei Director/ GM Resign 2015.4.13 Resign
Fu Jialin Deputy GM Resign 2015.6.19 Resign
Fan Zhaoping Director Resign 2015.1.7 Resign
41
ANNUAL REPORT FOR YEAR 2015
III. Posts
Work Experience in the Past Five Years of Directors, Supervisors and Senior Management in Current Office
Chairman: Mr. Tian Junyan, master degree in management of Huazhong University of Science and
Technology. He was once the associate professor of School of Management of Huazhong University of
Science and Technology. Since 1996, he had successively served the posts of manager of research
&development department and the Executive Senior Vice President of Nanshan Group. Mr. Tian has been the
Company‘s Director since 2010 May. Now he is the General Manager of Nanshan Group and Chairman of
the Seventh Board of Directors of the Company.
Vice Chairman: Mr. MingZhi Mei, has bachelor degree in finance of Indiana University and MBA of
Northwestern University and The Hong Kong University of Science and Technology. Since 1996, he
occupied important positions in the departments of finance, manufacture, sales, market, strategic planning
and integrated management of Owens Corning. He joined ProLogis in 2003. At present he is the jointed
founder and CEO of Global Logistic Properties and vice Chairman of the Seventh Board of Directors of the
Company.
Director/GM: Mr. Wang Shiyun, doctor degree in finance of University Cambridge. Mr. Wang has served the
posts as employee of ICBC, teacher and Ph. D supervisor in University of Manchester, University of
Sheffield, and University of Southampton. Since 2004 to May 2015, Mr. Wang has served the posts as CEE
and Deputy GM of Nanshan Group. At present, he is GM of the Company since April and Director of the
Company since June 2015.
Director: Mr. Kent Yang has bachelor degree in architecture of University of California, Los Angeles and
master degree in real estate development of Columbia University. He was the directing designer in Mark
Lintott Design in 1993; professional consultant in Colliers Jardine in 1996; special assistant to Chairman and
General Manager-China in Taiwan Fu Ji Manufacture Co., Ltd. since 1997; General Manager in Wuxi
Huayang High Tech Investment Co., since 2005. He was the General Manager of GLP Park Lingang in 2005
and First Vice President of Global Logistic Properties in 2007. At present, he is the president of China region
of Global Logistic Properties and director of the Seventh Board of Directors of the Company.
Director/Deputy GM: Mr. Shu Qian, graduated from Hunan Institute of Finance (merged Hunan University
in 2000) majored in accounting, and obtained a master degree with maritime economics and logistics from
Rotterdam University in 2004. Since 2000, Mr. Shu has successively worked in financial department in
Shenzhen Chiwan International Freight Forwarding Co., Ltd., operating department in Shenzhen Chiwan
Wharf Holdings Limited. He joined China Nanshan Development (Group) Co., Ltd as Assistant General
Manager. Currently, he is general manager of Research and Development Department of Nanshan
Development (Group) Co., Ltd. He has served as a director of the Company since May 2013 and deputy GM
of the Company since April 2015.
Independent Director: Mr. He Liming, master's degree, senior economist. He successively served the post of
former Deputy Director of the Materials Department, the Personnel Division of the Ministry of Domestic
Trade, general manager of China Nonferrous Metal Materials Corporation, Vice President and Secretary
General, Executive Vice President of the China Federation of Logistics and Purchasing. At present, he is
president of the China Federation of Logistics and Purchasing/party secretary, president of China Society of
Logistics, the president of China International Trade Promotion logistics industry branch, the vice chairman
of the Asia Pacific Logistics Alliance. In May 2013 he has served as an independent director of the Company.
Independent Director: Mr. Chen Weijie, a professor-level senior economist. He successively served the post
42
ANNUAL REPORT FOR YEAR 2015
of the manager of Finance Department of the Eastern Oil Company CNOOC Nanhai, Finance Department
Manager of CNOOC Shenzhen Branch, presiden of CACT Operators Group, Deputy General Manager and
Deputy Party Secretary of CNOOC Shenzhen Branch, General Manager of China National Offshore Oil
Corporation, the Ministry of Planning. Currently, he is deputy director of the Professional Committee of
China's economy Petroleum Institute; CNOOC/Shanghai Jiaotong University Engineering Research Center
member technical committee of new energy; Vice Chairman of Tianjin Intercity Railway Co. In May 2013 he
has served as an independent director of the Company.
Independent Director: Mr. Chen Shujun, Master Degree of Business Administration in Finance of Chinese
University of Hong Kong, Master Degree of Accounting of City University of Hong Kong International,
Bachelor of Laws degree from Tsinghua University (Adult Education). Senior Accountant, CPA China,
Chinese Certified Tax Agents, judicial experts, national legal professional qualifications; twelfth session of
the Conference of Guangdong Provincial People's Congress Standing Committee of the legislative
consultants, council member of the fifth CPA Association of Guangdong Province, reviewing experts of
Shenzhen Municipal Government Procurement Finance Committee, expert of Shenzhen Science and
Technology Committee, council member of the eighth Accounting Association, etc. Former Guangzhou CPA
auditor, manager; in 1998 served as Managing Partner of Shenzhen Guangshen Certified Accountant, legal
representative of Forensic Accounting Guangdong Guangzhou-Shenzhen; also served in Shenzhen China
Bicycle Company (Holdings) Co., Ltd., Funde Insurance Holding and Funde Property & Casualty Insurance
Co., Ltd. as independent director, served in Vengood and Sai Bo Le Ying Ke as director. In May 2013, he has
served as an independent director of the Company.
Independent Director: Mr. Yu Xiufeng, senior partner of Beijing DeHeng (Shenzhen) Law Office, with
doctor degree of Jilin University Law School and Economics postdoctoral of Jilin University Business
School, and once studied in Faculty of Law of Waseda University. Mr. Yu is Shenzhen Fifth People's
Congress legislative consultant, the fourth, fifth and sixth deputies of Shenzhen city for NPC, the fourth, fifth
and sixth members of the NPC Law Committee, the decision-making advisory committee of Shenzhen,
Shenzhen Municipal People's Government (Legislative Affairs) legal Expert Advisory Committee, arbitrator
for China International Economic and Trade Arbitration Commission and Shenzhen Arbitration Commission,
executive director for Shenzhen City Law Sixth Council, and part-time tutor for Peking University Law
School and Northeast University of Finance etc. He is also the Independent Director for Hybio
Pharmaceutical and Shenzhen Jinjia Color Printing. In May 2013, he has served as an independent director of
the Company.
Supervisory Committee Convener: Mr. Zhang Jianguo, Bachelor of Shanxi University of Accounting. He
served in Chiwan Wharf Holdings Limited as Financial Manager, Chief Financial Officer and Vice President.
At present, he is the CFO of Nanshan Group and has served as the convener of the Board of Supervisors of
the Company since May 2013.
Mr. Chen Hong, senior engineer, graduated from East China Institute of Water Conservancy. Since 2001, he
successively served as deputy general manager of Shenzhen Haiqin Engineering Co., Ltd., deputy chief
engineer of China Nanshan Development (Group) Co., Ltd. At present he is Chief Engineer of China
Nanshan Development (Group) Co., Ltd. He has served as supervisor of the Company since June 2012.
Supervisor: Mr. Li Hongwei, has doctor degree in system engineering of South China University of
Technology. He successively held the posts of manager, board secretary, director and deputy GM of Chengdu
Galaxy Power Co., Ltd. since 1989. He was the board secretary and deputy GM of Shenzhen Seg Dasheng
Co., Ltd. since 2001. He was deputy GM and GM of Business Management Department of China Nanshan
Development (Group) Incorporation in 2006. Now he is COO of Nanshan Group. He has served as
43
ANNUAL REPORT FOR YEAR 2015
supervisor of the Company since April 2011.
Supervisor: Mr. Chen Lei, has bachelor degree in international finance of Shanghai Jiao Tong University and
MBA of University of Southern California. He is CPA and CTA of China. He was the auditor of Ernst &
Young in 1998 and finance manager of Shanghai New International Expo Center in 2001. At present, he is
Senior Vice President of Global Logistic Properties and the supervisor of the Seventh Board of Supervisors
of the Company.
Employee Supervisor: Ms Sun Yuhui, bachelor degree in Economics, Lanzhou University, accountants of
Chinese Certified Tax Agents. Since August 2003, she worked as supervisor of financial department in
Nanshan Group. Since July 2010, she has served in Shenzhen Nanshan Real Estate Development Co., Ltd as
deputy manager/manager of Finance Department. At present, she is the financial manager of the Company
and the supervisor of the Company since May 2013.
Employee Supervisor: Mr. Huang Ronghui, graduated from Guangdong Communication Polytechnic road
machinery. Served as supervisor, warehouse manager, assistant general manager of the warehouse
department of Shenzhen Chiwan Warehouse Limited (now called Shenzhen Baowan). At present, he is the
Assistant GM for Company's petroleum logistics division since June 2006 and supervisor of the Company
since May 2013.
Deputy GM/Chief Engineer: Mr. Wang Jianjiang, has doctor degree of Hydraulic Structure Engineering of
Wuhan Water Resources and Electric University. He worked in Xinjiang Shihezi University (the original
Shihezi Agricultural College) from Mar 1985 to Aug 1992. He studied in Wuhan Water Resources and
Electric University from Sept 1992 to June 1995 and got doctor degree of Hydraulic Structure Engineering.
Since 1996, he worked in planning department, office of general engineer and department of planning and
construction management of China Nanshan Development (Group) Incorporation as engineer, assistant
manager and department manager successively. He is Deputy GM & Chief Engineer of the Company since
February 2011.
Deputy GM & CFO: Mdm. Yu Zhongxia, has bachelor of Shan‘xi Finance and Economics College with the
qualification of Accountant and senior international financial manager. Mdm. Yu has taught at Xi‘an Road
Management College. She joined the Company in 1992 and held the posts of Financial Manager Assistant,
Financial Manager of CSE, System/Audit Manager Assistant, Deputy Financial Manager, Financial Manager,
Assistant GM, Deputy CFO and CFO. She is Deputy GM & CFO of the Company since November 2011.
Deputy GM: Mr. Zhang Xiang, master degree, graduated from Wuhan Marine Traffic Engineering College.
He successively served as the post of supervisor, assistant manager, deputy manager of operation department
of the Company. From October 2005 to May 2015, he served as deputy GM and GM of Guangzhou Baowan.
Since February 2011, he was GM of Offshore Oil Logistics Service Division of the Company and Shenzhen
Baowan. He was once the supervisor of the Board of Supervisors of the Company. Currently, he is Deputy
GM of the Company since April 2014.
Board Secretary: Mr. Song Tao, has bachelor degree of International Finance of Dalian University of
Technology and master degree of Technology and Economic Management of Hebei University of Technology.
He held the posts of finance supervisor and Deputy Manager of finance department in Shenzhen Baowan in
April 2004. From April 2005 to March 2012, he was the Securities Representative of the Company. At
present, he is the Board Secretary and Manager of Investment Department of the Company and investing
supervisor of Blogis.
Posts in Shareholder‘s Company
44
ANNUAL REPORT FOR YEAR 2015
√ Applicable □ Inapplicable
Whether receiving
Name Company Name Position Office Term remuneration from
shareholder
Tian Junyan General Manager 2011.01.04 Yes
CHINA NANSHAN Financial Controller 2013.01.01 Yes
Zhang Jianguo
DEVELOPMENT (GROUP) Deputy General Manager 2015.02.13 Yes
Chen Hong INCORPORATION Chief Engineer 2007.09.12 Yes
Li Hongwei Chief Operating Officer 2014.02.21 Yes
Other Posts
√ Applicable □ Inapplicable
Whether
receiving
Starting Date Expiry Date
Name Company Name Position remuneration
of Tenure of Tenure
from other
companies
Shenzhen New Nanshan No
Chairman 2011.4.21
Holding (Group) Co., Ltd.
Shenzhen Nanshan Real Estate No
Chairman 2011.4.15
Tian Developing Co., Ltd.
Junyan HOMWON Capital No
Chairman 2013.7.5
Management Co., Ltd
China Development Finance No
Chairman 2013.7.24
Company Limited
CEO & Jointed Yes
Mingzhi Global Logistic Properties 2003.3.3
Founder
Mei
Global Logistic Properties Director 2010.11.1 Yes
Wang No
Blogis Holding Co., Ltd. Chairman 2015.6.30
Shiyun
President of China Yes
Kent Yang Global Logistic Properties 2013.1.23
Region
China Federation of Logistics President and Party
2010.11.2 2016.9.26 Yes
and Purchasing Secretary
China Society of Logistics President 2006.11.11 2020.11.12 No
China International Trade
President 2010.11.2 2020.11.3 No
He Liming Promotion Logistics Industry
Asia Pacific Logistics Alliance Vice Chairman 2015.1.1 2017.12.31 No
International Alliance Director
of Purchasing and Supply Director 2015.1.1 2015.12.31 No
Management
CNOOC / Shanghai Jiaotong No
University Engineering
Chen Committee Member 2008.1.1
Research Center---Technical
Weijie
Committee
Tianjin Intercity Railway Co Vice Chairman 2006.1.1 No
Shenzhen Guangshen Certified
Managing Partner 1998.1.1 Yes
Accountant
Forensic Accounting
Chen
Guangdong legal representative 2002.12.1 No
Shujun
Guangzhou-Shenzhen
Shenzhen China Bicycle Independent
2010.8.26 2016.9.26 Yes
Company (Holdings) Co., Ltd. Director
45
ANNUAL REPORT FOR YEAR 2015
Independent
Funde Insurance Holding 2015.7.1 2018.7.1 Yes
Director
Funde Property & Casualty Independent
2015.6.4 2018.6.4 Yes
Insurance Co., Ltd. Director
Vengood Director 2015.5.5 2018.5.5 No
Sai Bo Le Ying Ke Director 2016.2.26 2019.2.26 No
Beijing DeHeng (Shenzhen) Yes
Senior Partner 2002.8
Law Office
Yu Independent
Hybio Pharmaceutical 2010.6.17 Yes
Xiufeng Director
Independent Yes
Shenzhen Jinjia Color Printing 2014.3.13 2017.3.12
Director
Chiwan Wharf Holdings Co.,
Director 2013.1.31 No
Ltd.
Shenzhen New Nanshan
Director 2014.5.21 No
Holding (Group) Co., Ltd.
HOMWON Capital
Zhang Supervisor 2013.7.5 No
Management Co., Ltd
Jianguo
China Development Finance
Vice Chairman 2015.8.3 No
Company Limited
Blogis Holding Co., Ltd. Vice Chairman 2013.8.8 No
Shenzhen Shen Hong Tai
Chairman 2015.5.14 No
Property Management Co., Ltd.
Senior Vice
Chen Lei Global Logistic Properties 2012.1.6 Yes
President
Blogis Holding Co., Ltd. Director 2011.7.20 No
Chixiao Enterprise Co., Ltd. Director 2011.8.17 No
Shenzhen Chiwan Oriental
Director 2013.5.13 No
Logistics Ltd
Li China Development Finance
Supervisor 2013.7.24 No
Hongwei Company Limited
Hefei Baowan International
Vice Chairman 2015.8.6 No
Logistics Centre Co., Ltd.
Shenzhen New Nanshan
Director 2015.9.22 No
Holding (Group) Co., Ltd.
Yu
Blogis Holding Co., Ltd. Supervisor 2011.7.20 No
Zhongxia
Song Tao Blogis Holding Co., Ltd. Investing Supervisor 2015.7.21 No
Penalty of the Current Directors, Supervisors and Senior Management Left during the Report Period over the
Past 3 Years
□ Applicable √ Inapplicable
IV. The Remuneration of Directors, Supervisors and Senior Management
Decision-making procedures, basis for determination and actual payment of the remuneration to directors,
supervisors and senior management
1. Independent directors‘ allowance is approved by General Shareholders‘ Meeting. The remuneration of
senior management is approved by Board of Directors. Independent Directors‘ allowance is RMB 100,000
per year
2. Senior management is appointed by the Board of Directors. Remuneration standard for senior management
is decided by their abilities, performance, etc.
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ANNUAL REPORT FOR YEAR 2015
3. Directors, Supervisors and Senior Management will be paid monthly and the rest bonus will be decided by
their abilities, performance, etc.
Remuneration to directors, supervisors and senior management in the report period
Unit: RMB 0000
Whether
Remuneration Gained
Office from the Remuneration
Name Position Gender Age
Status Company from Related
before Tax Party of the
Company
Tian Junyan Chairman Male 54 In Office - Yes
Mingzhi Mei Vice Chairman Male 43 In Office - Yes
Wang Shiyun Director/ GM Male 49 In Office 37.29 Yes
Kent Yang Director Male 47 In Office - Yes
Shu Qian Director/Deputy GM Male 39 In Office 22.91 Yes
He Liming Independent Director Male 62 In Office 0 No
Chen Weijie Independent Director Male 65 In Office 10 No
Chen Shujun Independent Director Male 48 In Office 10 No
Yu Xiufeng Independent Director Male 51 In Office 10 No
Zhang Jianguo Supervisor Convenor Male 51 In Office - Yes
Chen Hong Supervisor Male 56 In Office - Yes
Li Weihong Supervisor Male 48 In Office - Yes
Chen Lei Supervisor Male 39 In Office - Yes
Sun Yuhui Supervisor Female 41 In Office 50.7 No
Huang Ronghui Supervisor Male 59 In Office 28.61 No
Wang Jianjiang Deputy GM Male 58 In Office 83.09 No
Deputy GM/ Financial
Yu Zhongxia Female 52 In Office 86.22 No
Controller
Zhang Xiang Deputy GM Male 51 In Office 61.84 No
Song Tao Board Secretary Male 37 In Office 51.95 No
Fan Zhaoping Director Male 62 Resign - Yes
Liu Wei Director/Deputy GM Male 50 Resign 72.36 No
Ren Yongping Resign Male 63 Resign - No
Fu Jialin Deputy GM Male 54 Resign 54.6 No
Total -- -- -- -- 579.57 -
Note: Mr. Wang Shiyun and Mr. Shu Qian gained remuneration from Nanshan Group from Jan to Apr, 2015
and from the Company from May 2015.
Incentive equity to directors, supervisors or/and senior management in the report period.
□ Applicable √ Inapplicable
V. About Staff
1. Number of Employees, Professional Structure and Education
Number of Employees of Parent Company 288
Number of Employees of Main Subsidiaries 253
Total Number of Employees 541
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ANNUAL REPORT FOR YEAR 2015
Number of Taking Remuneration from the Company 541
Number of Retiree to Whom the Company needed to
0
Pay Salary
Professional Structure
Professional Structure Number
Manufacturing Employee 278
Sales Employee 61
Technical Employee 46
Financial Employee 57
Administrative Employee 99
Total 541
Education
Education Number
Master or above 47
Bachelor 196
Junior College 106
Junior College below 192
Total 541
2. Remuneration Policy for Staff
In the report period, staff‘s salary was paid monthly according to the Company‘s related regulation. At the
end the year, bonus was paid by the Company‘s profitability and staff‘s performance.
3. Training Program
In the report period, the Company had organized 43 employees to participate E-learning program; and
organized internal studying groups which nearly 300 employees participate.
4. Labor Outsourcing
√ Applicable □ Inapplicable
Hours of Labor Outsourcing 750,000
Total Remuneration of Hours of Labor Outsourcing 23,010,000.00
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ANNUAL REPORT FOR YEAR 2015
PART IX Corporate Governance
Ⅰ. Corporate Governance
1. General
During the report period, the Company had continuously observed Company Law, Securities Law, and
Guidelines of Corporate Governance for Listed Company and relevant regulations to improve and enhance
its corporate governance.
(1) During the report period, according to the Company's business development, the Company revised the
Articles of Association. The revision was reviewed and approved by the 17th tele-communication meeting of
the 7th Board of Director and the First Extraordinary Shareholders‘ Meeting.
(2) Shareholders and shareholders‘ general meeting: the Company ensures that all the shareholders,
especially minority shareholders, are equal and could enjoy their full rights. The Company called and held
shareholders‘ general meeting strictly in compliance with the Rules for Shareholders‘ General Meeting.
(3) Relationship between the controlling shareholder and the Company: controlling shareholder of the
Company acted in line with rules during the reporting period, did not intervened the decisions, productions or
operations of the Company directly or indirectly in exceeding the authority of the shareholders‘ general
meeting, and did not appropriate any funds of the Company.
(4) Directors and the Board of Directors: the Company elected directors in strict accordance with the Articles
of Association. Number and composition of members of the Board were in compliance with relevant laws
and regulations; all Directors attend Board meetings and shareholders‘ general meeting in a serious and
responsible manner and participated enthusiastically relevant training so as to know better about laws and
regulations as well as the rights, obligations and liabilities of Directors.
(5) Supervisors and the Supervisory Committee: number and composition of the members of the Supervisory
Committee were in compliance with the requirements of laws and regulations. The supervisors diligently and
seriously performed their duties and obligations, took responsible attitudes to all shareholders and supervised
the financial affair as well as the performance by the Company‘s Directors, managers and other senior
executives of their duties in compliance with the laws and regulations.
(6) Stakeholders: the Company fully respected and safeguarded the legal rights and interests of the banks and
other creditors, staff, consumers and other stakeholders so as to develop the Company in a consistent and
healthy way.
(7) Information disclosure and transparency: the Company authorized the Company Secretary to take charge
of information disclosure, and the Chairman as well as related Directors to meet with shareholders. The
Company disclosed relevant information in a true, accurate, complete and timely way in strict accordance
with the requirements of laws, regulations and the Articles of Association, formulated the Management Rules
on Information Disclosure, the Management System on Inside Information and Insiders and the Rules on the
Management of Investors Relations, and designated Securities Times, Hong Kong Commercial Daily and
http://www.cninfo.com.cn as its newspaper and website for information disclosure, so as to ensure all
shareholders have equal opportunity to obtain the information.
(8) Non-normative Corporate Governance
According to the requirements of Ministry of Finance and Accounting Standards for Enterprises, the
Company provided financial reports monthly to its controlling shareholders, Nanshan Group, for compiling
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ANNUAL REPORT FOR YEAR 2015
consolidated financial statements. In accordance with requirements of the Supplementary Notice on
Strengthened Supervision of Non-Standard Behaviors in Corporate Governance Including Providing
Undisclosed Information to Controlling Shareholders and Effective Controller, the Board of Directors
reviewed and approved the Resolution on Regular Submission of Financial Statements to the Controlling
Shareholders on the Second Tele-communication Meeting of the Fifth Board of Directors. Nanshan Group
and the Company signed the commitment letter respectively, and the Company provided the insiders‘ list to
CSRC Shenzhen Bureau for record as well.
2 . Preparation and Implementation of the Registration Management System for Insiders
On October 28, 2009, the Seventh Session of the Fifth Board of Directors reviewed and approved the
registration system of undisclosed information insiders. (Please find the details on www.cninfo.com.cn on
October 30, 2009) In the report period, the Company implemented the registration system strictly and
registered the insiders timely.
In the report period, directors, supervisors and the senior management of the Company did not buy or sell
shares against regulations.
Does there exist any difference in compliance with the corporate governance, the PRC Company Law and
the relevant provisions of CSRC.
□ Yes √ No
There exist no difference in compliance with the corporate governance, the PRC Company Law and the
relevant provisions of CSRC.
II. Particulars about the Company’s separation from the controlling shareholder in
respect of business, personnel, assets, organization and financial affairs
The Company is absolutely independent in business, personnel, assets, finance and organization from its
controlling shareholder. Details are set out as follows.
Separation in business: The Company has its own assets, personnel, qualifications and ability to carry out
operating activities and is able to operate independently in the market.
Separation in personnel: The Company has basically separated its staff from its controlling shareholder. No
senior management staff of the Company holds positions at controlling shareholder of the Company.
Separation in assets: The Company possesses its own self-governed assets and domicile. Separation in
organization: The Company has established and improved the corporate governance structure according to
law and has an independent and complete organizational structure.
Separation in finance: The Company has set up its own financial department as well as normative accounting
system and the financial management system on its subsidiaries. The Company has its own bank accounts
and does not share the same bank account with its controlling shareholder. The Company has been paying tax
in accordance with the laws and regulations on its own behalf.
III. Horizontal Competition
□ Applicable √ Inapplicable
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ANNUAL REPORT FOR YEAR 2015
IV. Annual General Meeting and Extraordinary Shareholders’ Meetings in the Report
Period
1. Annual General Meeting in the Report Period
Sessions Type Proportion of Convening Disclosure Disclosure Index
Investors‘ Date Date
Participation
2015-41 Resolutions on
Annual General
Annual General Annual General Meeting for
Meeting for Year 4.36% 2015.6.30 2015.7.1
Meeting Year 2014
2014
(www.cninfo.com.cn)
First Special 2015-60 Resolutions on First
Extraordinary Shareholders‘ Extraordinary Shareholders‘
0.00 2015.10.22 2015.10.23
Shareholders‘ General Meeting Meeting in 2015
Meeting in 2015 (www.cninfo.com.cn)
2. Special Shareholders’ General Meeting Applied by the Preferred Stockholder with Restitution of
Voting Right
□ Applicable √ Inapplicable
V. Performance of Independent Directors
1. Attendance of Board Meeting and Shareholders’ Meeting
Attendance of Board Meeting
Non-attendance
Meetings
Attendance in Attendance by Attendance by in person for
Name required to be Absence rate
person facsimile proxy two consecutive
present
times
He Liming 9 1 8 0 0 N/A
Chen Weijie 9 1 8 0 0 N/A
Chen Shujun 9 1 8 0 0 N/A
Yu Xiufeng 9 1 8 0 0 N/A
Number of Shareholders‘ Meeting
2
Attended
2. Objection of Independent Directors on Some Relevant Issues
Objection of independent directors on some relevant issues
□ Yes √ No
Independent directors proposed no objection against the relevant matters in the report period.
3. Other Note to the Performance of Independent Directors
During the report period, the independent directors of the Company was in strictly accordance with relevant
laws, regulations and the "Articles of Association", fully concerned the company operation and performs
their duties independently, which affected the company's systems to improve decision-making and other
aspects of daily operations. They made many valuable professional advices on the matters requiring the
independent directors of the Company during the report period to comment on the issue of independence,
impartiality advice for improving corporate oversight mechanisms to safeguard the legitimate interests of the
company and all its shareholders to play its due role.
VI. Performance of Special Committees under the Board of Directors in the Report
Period
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ANNUAL REPORT FOR YEAR 2015
1. Performance of Audit Committee
(1) Reviewing the financial report and presenting written opinion
According to relevant regulations, the Audit Committee reviewed the financial report and presented written
opinion. The Company strictly implemented Articles of Association and other regulations and ensured the
objectivity and authenticity of financial report.
After the auditor submitted the draft of audit report, the committee reviewed the finance report and presented
written opinion. The compiling basis, principles and method of financial report followed the relative
regulations and fairly reflected the financial status and operation results of the Company for Year 2014.
(2) Maintaining regular communication with auditors and following progress of auditing closely
In the audit period, the committee maintained regular communication with financial department, followed the
progress of auditing closely and held a meeting discussed with the auditors about auditing plan, scope, focus
points and the incurred problems and resolutions.
(3) Summarizing the auditor‘s work
The committee summarized the work of auditor and thought that they completed the annual audit work in
plan.
(4) Opinions on hiring an accounting firm
Recommend the Company to hire Deloitte Touche Tohmatsu Limited for 2015 annual audit and internal
control audit.
2. Performance of Nomination and Remuneration Committee
(1)During the report period, the committee reviewed Mr. Wang Shiyun and Shu Qian‘s resume on their
education background, work experience and physical condition and agreed to submit the proposal on
appointment of Mr. Wang Shiyun as GM and Mr. Shu Qian as Deputy General Manager for approval.
(2) During the report period, the committee reviewed salary of senior managers, and published the opinion
on senior manager compensation for year 2014.
3. Strategy and Development committee
During the period, the committee has deliberated and agreed to submit 5 years developing plan to the Board
of Director for approval.
VII. Work of the Board of Supervisors
Did the Board of Supervisors find any risk existing in performing the supervision activities in the report
period?
□ Yes √No
The Board of Supervisors has no objection against any matters under supervision in the report period.
VIII. Examination and Incentive Mechanism for Senior Management
In the report period, the salaries of senior management were decided by their work performance, job
description, personal ability, the Company‘s profit, etc.
IX. Internal Control
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ANNUAL REPORT FOR YEAR 2015
1. Particulars about Significant Defects Found in the Internal Control during Report
Period
□ Yes √ No
2. Internal Control Evaluation Report
Disclosure date of full internal control evaluation report 2016-04-26
Disclosure index of full internal control evaluation report www.cninfo.com.cn
The ratio of the total assets of units included in the scope of evaluation
accounting for the total assets on the company's consolidated financial 79.38%
statements
The ratio of the operating income of units included in the scope of evaluation
accounting for the operating income on the company's consolidated financial 98.42%
statements
Defects Evaluation Standards
Category Financial Reports Non-financial Reports
Deficiencies with following
characteristics are identified as major
deficiencies: senior management of the
company makes fraud; internal
supervisory body has not performed Non-financial reporting deficiencies are
basic functions; financial reports have identified in accordance with the impact
serious misstatements or omissions; on the effectiveness of business
internal control environment related to processes and the possibility of
financial reports is invalid. occurrence.
Deficiencies with following
characteristics are identified as If the possibility of deficiency
significant deficiencies: the selection occurrence is small, it will reduce the
and application of accounting policies work efficiency or effects, or increase the
do not follow the generally accepted uncertainty of effects, or make it deviate
accounting principles; anti-fraud from the expected target and become a
programs and control measures have general deficiency; if the possibility of
Qualitative criteria been not established; Major internal deficiency occurrence is rather high, it
control deficiencies found and will significantly reduce the work
reported to the management but efficiency or effects, or significantly
haven‘t been corrected after a increase the uncertainty of effects, or
reasonable time; the controls to the make it significantly deviate from the
period-end financial reporting process expected target and become a significant
have one or more defects and cannot deficiency; if the possibility of
reasonably ensure that the financial deficiency occurrence is very high, it
statements prepared are true and will seriously reduce the work efficiency
accurate; misstatements not reaching or effects, or seriously increase the
and exceeding the significance level uncertainty of effects, or make it
but should be attached importance by seriously deviate from the expected
the board of directors and the target and become a major deficiency.
management in nature.
General deficiencies are the other
control deficiencies except for major
and significant deficiencies.
Affirm according to the amount Affirm according to the absolute amount
Quantitative standard potentially causing financial losses or of direct economic losses caused to the
accounting misstatements: (1) It is a company: (1) It is a general deficiency if
general deficiency if the amount is less the amount is less than 0.8 million yuan
53
ANNUAL REPORT FOR YEAR 2015
than 0.8 million yuan or less than 0.5% or less than 0.5% of annual operating
of annual operating profit; (2) It is a profit; (2) It is a significant deficiency if
significant deficiency if the amount is the amount is greater than 0.8 million
greater than 0.8 million yuan and less yuan and less than or equal to 1.5 million
than or equal to 1.5 million yuan or yuan or 0.5% - 1% of annual operating
0.5% - 1% of annual operating profit; profit; (3) It is a major deficiency if the
(3) It is a major deficiency if the amount is greater than 1.5 million yuan
amount is greater than 1.5 million yuan or greater than 1% of annual operating
or greater than 1% of annual operating profit;
profit.
Affirm according to the losses caused
by fraud to the company: (1) It is a
general deficiency if there is no loss;
(2) It is a significant deficiency if the
loss is less than or equal to 0.5 million
yuan; 3) It is a major deficiency if the
amount is greater than 0.5 million
yuan.
Amount of significant defects
0
in financial reports
Amount of significant defects
0
in non-financial reports
Amount of important defects
0
in financial reports
Amount of important defects
0
in non-financial reports
X. Audit Report on Internal Control
√ Applicable □ Inapplicable
Audit opinion paragraphs in the Audit Report on Internal Control
Deloitte Touche Tohmatsu Certified Public Accountants LLP audited the effectiveness of internal control in
financial report on 31 Dec. 2015, and believed that Shenzhen Chiwan Petroleum Supply Base Co., Ltd. has
maintained effective internal control on financial report in all significant respects according to the Basic Rules
for Enterprise Internal Control and relevant regulations on 31 Dec. 2015.
Disclosure of Audit Report on Internal Control Disclosed
Disclosure date of the Audit Report on Internal Control April 26, 2016
Details of the Internal Control Report of Shenzhen
Disclosure index of the Audit Report on Internal
Chiwan Petroleum Supply Base Co., Ltd. was
Control
disclosed on www.cninfo.com.cn
Type of Audit Report on Internal Control Standard Unqualified auditor's report
Whether there is significant defect in non-financial report No
Whether the CPAs firm issues an Audit Report on Internal Control with non-standard opinion or not?
□ Yes √ No
Whether the Audit Report on Internal Control from the CPAs firm is in consistent with the Self-appraisal
Report from the Board or not?
√ Yes □ No
54
PART X Financial Report
Opinion Type of Audit Report Standard and Unqualified
Signature Date of Audit Report April 22, 2016
Name of Audit Organization Deloitte Touche Tohmatsu Certified Public Accountants LLP
No. of Audit Report De Shi Bao(Shen) Zi (16) No. P1754
Name of Certificated Accountants Li Weihua, Jiang Qishen
PART XI Documents Available for Verification
1. Original copy of Annual Report carrying the signature of the Chairman.
2. Financial Report carrying the signature of relative persons in charge.
3. Original copy of Auditor‘s Statements sealed by CPA and signed by registered accountants.
4. Original copies of all the documents disclosed in the newspapers specified by the China Securities Regulatory
Commission.
Board of Directors
Shenzhen Chiwan Petroleum Supply Base Co., Ltd.
April 26, 2016
55
SHENZHEN CHIWAN
PETROLEUM SUPPLY BASE CO., LTD.
Financial Statements and Auditor's Report
for the year ended 31 December 2015
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FINANCIAL STATEMENTS AND AUDITOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2015
Contents Pages
Auditor's report 1-2
The Company's and consolidated balance sheets 3- 4
The Company and consolidated income statements 5- 6
The Company and consolidated cash flow statements 7- 8
The Company and consolidated statements of changes in shareholders' equity 9- 10
Notes to the financial statements 11-95
AUDITOR'S REPORT
De Shi Bao(Shen) Zi (16) No. P1754
TO THE SHAREHOLDERS OF SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
We have audited the accompanying financial statements of Shenzhen Chiwan Petroleum Supply
Base Co., Ltd. (the "Company"), which comprise the Company's and consolidated balance sheets as
at 31 December 2015, and the Company's and consolidated income statements, the Company's and
consolidated statements of changes in shareholders' equity and the Company's and consolidated cash
flow statements for the year then ended, and the notes to the financial statements.
1. Management's responsibility for the financial statements
Management of the Company is responsible for the preparation and fair presentation of these
financial statements. This responsibility includes: (1) preparing the financial statements in
accordance with Accounting Standards for Business Enterprises to achieve fair presentation of the
financial statements; (2) designing, implementing and maintaining internal control which is
necessary to enable that the financial statements are free from material misstatement, whether due to
fraud or error.
2. Auditor's responsibility
Our responsibility is to express an audit opinion on these financial statements based on our audit. We
conducted our audit in accordance with China Standards on Auditing. Those Standards on require
that we comply with the Code of Ethics for Chinese Certified Public Accountants and plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing audit procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, we consider the internal control relevant to
the preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
-1-
3. Opinion
In our opinion, the financial statements of the Company present fairly, in all material respects, the
Company's and consolidated financial position as of 31 December 2015, and the Company's and
consolidated results of operations and cash flows for the year then ended in accordance with
Accounting Standards for Business Enterprises.
Deloitte Touche Tohmatsu Certified Chinese Certified Public Accountant
Public AccountantsLLP
Shanghai, China Li, Weihua
Chinese Certified Public Accountant
Jiang Qishen
22 April2016
The auditor's report and the accompanying financial statements are English translations of the
Chinese auditor's report and financial statements prepared in accordance with Accounting Standards
for Business Enterprises. These financial statements are not intended to present the financial
position and results of operations and cash flows in accordance with accounting principles and
practices generally accepted in other countries and jurisdictions. Where the English version does not
conform to the Chinese version, the Chinese version prevails.
-2-
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
AT 31 DECEMBER 2015
Consolidated Balance Sheet
Unit: RMB
ITEM Notes Closing balance Opening balance ITEM Notes Closing balance Opening balance
Current Assets: Current Liabilities:
Cash and bank balances (V)1 321,121,926.73 375,328,861.18 Short-term borrowings (V)16 300,000,000.00 -
Notes receivable (V)2 - 10,000,000.00 Accounts payable (V)17 13,502,745.52 10,358,009.24
Accounts receivable (V)3 50,257,814.22 53,234,644.64 Receipts in advance (V)18 4,294,109.24 5,067,901.21
Employee benefits
Prepayments (V)4 435,877.51 373,220.41 (V)19 26,233,258.02 31,424,490.98
payable
Interest receivable (V)5 1,138,739.73 3,573,311.30 Taxes payable (V)20 20,937,276.95 40,439,178.66
Other receivables (V)6 58,666,231.60 61,287,160.23 Interest payable (V)21 28,404,479.52 36,404,811.44
Inventories (V)7 914,543.44 1,054,046.42 Other payables (V)22 480,066,219.49 439,034,917.38
Non-current liabilities due
Other current assets (V)8 235,000,000.00 390,000,000.00 (V)23 707,396,728.40 1,349,351.16
within one year
Total Current Assets 667,535,133.23 894,851,244.18 Other current liabilities (V)24 6,000,000.00 300,000,000.00
Non-current Assets: Total Current Liabilities 1,586,834,817.14 864,078,660.07
Long-term equity
(V)9 582,600,360.74 537,962,041.17 Non-current Liabilities:
investments
Investment properties (V)10 1,425,593,724.71 1,267,169,209.29 Long-term borrowings (V)25 489,834,250.45 390,816,685.64
Fixed assets (V)11 842,722,056.06 777,313,197.48 Bonds payable (V)26 967,159,500.00 965,677,500.00
Construction in progress (V)12 368,965,477.50 300,456,627.34 Long-term payables (V)27 251,417,853.31 251,417,853.31
Intangible assets (V)13 1,450,042,826.68 1,341,187,179.75 Deferred income (V)28 51,251,151.07 1,500,000.00
Other non-current
Deferred tax assets (V)14 28,877,355.41 17,117,751.96 (V)29 226,367,558.34 927,716,909.50
liabilities
Total Non-current
Other non-current assets (V)15 277,619,704.84 253,572,620.64 1,986,030,313.17 2,537,128,948.45
Liabilities
Total Non-current Assets 4,976,421,505.94 4,494,778,627.63 TOTAL LIABILITIES 3,572,865,130.31 3,401,207,608.52
SHAREHOLDERS'
EQUITY:
Share capital (V)30 230,600,000.00 230,600,000.00
Capital reserve (V)31 234,141,186.09 234,141,186.09
Other comprehensive
(V)32 652,079.14 652,079.14
income
Special reserve (V)33 5,941,771.48 4,240,147.49
Surplus reserve (V)34 317,245,288.81 307,084,630.25
Unappropriated profits (V)35 965,504,851.33 913,767,989.40
Total shareholders' equity
attributable to equity 1,754,085,176.85 1,690,486,032.37
holders of the Company
Minority interests 317,006,332.01 297,936,230.92
TOTAL
SHAREHOLDERS' 2,071,091,508.86 1,988,422,263.29
EQUITY
TOTAL LIABILITIES
AND
TOTAL ASSETS 5,643,956,639.17 5,389,629,871.81 5,643,956,639.17 5,389,629,871.81
SHAREHOLDERS'
EQUITY
The accompanying notes form an integral part of the financial statements.
The financial statements on pages 3to 95were signed by the following:
Tian Junyan Yu Zhongxia Sun Yuhui
Legal Representative Chief Financial Officer Head of Accounting Department
-3-
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
AT 31 DECEMBER 2015
Balance Sheet of the Company
Unit: RMB
ITEM Notes Closing balance Opening balance ITEM Notes Closing balance Opening balance
Current Assets: Current Liabilities:
Cash and bank balances (XIV)1 28,808,779.96 110,176,958.92 Short-term borrowings (V)16 300,000,000.00 -
Accounts receivable (XIV)2 22,290,192.64 34,383,433.27 Accounts payable 13,115,420.11 10,133,886.43
Prepayments 174,357.15 162,238.73 Employee benefits payable 17,261,742.30 22,196,600.51
Interest receivable 1,031,342.47 3,242,328.77 Taxes payable 2,508,111.41 26,735,284.42
Other receivables (XIV)3 1,519,389,018.64 1,479,302,828.83 Interest payable 28,118,306.33 36,195,924.54
Inventories 665,307.48 618,056.60 Other payables 67,373,561.98 74,542,526.68
Non-current liabilities due
Other current assets 235,000,000.00 278,000,000.00 701,349,351.16 1,349,351.16
within one year
Total Current Assets 1,807,358,998.34 1,905,885,845.12 Other current liabilities - 300,000,000.00
Non-current Assets: Total Current Liabilities 1,129,726,493.29 471,153,573.74
Long-term equity
(XIV)4 1,486,226,120.45 1,409,767,800.88 Non-current Liabilities:
investments
Investment properties 121,605,608.97 107,855,864.11 Long-term borrowings (XIV)5 181,224,302.04 182,524,302.04
Fixed assets 62,672,792.29 70,348,373.29 Bonds payable (V)26 967,159,500.00 965,677,500.00
Other non-current
Construction in progress 2,600,283.00 23,265,903.87 16,367,558.34 717,716,909.50
liabilities
Total Non-current
Intangible assets 292,794,849.40 308,975,078.68 1,164,751,360.38 1,865,918,711.54
Liabilities
Deferred tax assets 9,635,782.89 137,885.22 TOTAL LIABILITIES 2,294,477,853.67 2,337,072,285.28
SHAREHOLDERS'
Other non-current assets 255,366.60 417,184.70
EQUITY:
Total non-current assets 1,975,790,803.60 1,920,768,090.75 Share capital (V)30 230,600,000.00 230,600,000.00
Capital reserve 204,534,849.49 204,534,849.49
Special reserve 5,775,987.68 4,103,762.23
Surplus reserve (V)34 317,245,288.81 307,084,630.25
Unappropriated profits 730,515,822.29 743,258,408.62
TOTAL
SHAREHOLDERS' 1,488,671,948.27 1,489,581,650.59
EQUITY
TOTAL LIABILITIES
TOTAL ASSETS 3,783,149,801.94 3,826,653,935.87 AND SHAREHOLDERS' 3,783,149,801.94 3,826,653,935.87
EQUITY
The accompanying notes form an integral part of the financial statements.
-4-
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2015
Consolidated Income Statement
Unit: RMB
Amount for the Amount for the
ITEM Notes current period prior period
I. Operating income (V)36 650,279,516.34 712,958,603.26
Less: Operating costs (V)36 297,002,514.88 259,661,927.23
Business taxes and levies (V)37 36,184,168.56 26,566,881.59
Selling expenses (V)38 1,794,630.86 423,872.43
General and administrative expenses (V)39 95,531,527.18 95,231,275.15
Financial expenses (V)40 165,115,346.59 146,278,726.91
Impairment losses of assets (V)41 975,282.77 (20,260.63)
Add: Investment income (V)42 75,110,506.18 93,892,421.67
Including: Income from investments in associates and
58,968,248.53 61,708,345.78
joint ventures
II. Operating profit 128,786,551.68 278,708,602.25
Add: Non-operating income (V)43 13,638,110.34 11,868,125.52
Including: Income from disposal of non-current assets 83,782.26 244,284.67
Less: Non-operating expenses (V)44 1,520,513.80 (11,228.60)
Including: Losses from disposal of non-current assets 386,856.19 54,664.06
III. Gross profit 140,904,148.22 290,587,956.37
Less: Income tax expenses (V)45 30,231,553.32 51,731,039.46
IV. Net profit 110,672,594.90 238,856,916.91
Net profit attributable to owners of the Company 91,644,920.49 218,544,184.50
Profit or loss attributable to minority shareholders 19,027,674.41 20,312,732.41
V. Post-tax net value of other comprehensive income (V)46 - 63,383.20
Post-tax net value of other comprehensive income attributable
- 49,033.25
to owners of the Company
(I) Other comprehensive income that will not be reclassified - -
subsequently to profit or loss
(II) Other comprehensive income that will be reclassified - 49,033.25
subsequently to profit or loss
1.Translation differences arising on translation of financial
- 49,033.25
statements denominated in foreign currencies
Post-tax net value of other comprehensive income attributable
- 14,349.95
to minority shareholders
VI. Total comprehensive income: 110,672,594.90 238,920,300.11
Total comprehensive income attributable to owners of the
91,644,920.49 218,593,217.75
Company
Total comprehensive income attributable to minority
19,027,674.41 20,327,082.36
shareholders
VII. Earnings per share:
(I) Basic earnings per share (V)47 0.40 0.95
(II) Diluted earnings per share Not applicable Not applicable
The accompanying notes form an integral part of the financial statements.
-5-
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2015
Income Statement of the Company
Unit: RMB
Amount for the Amount for the
ITEM Notes current period prior period
I. Operating income (XIV)6 166,417,996.03 339,839,233.86
Less: Operating costs (XIV)6 110,684,405.54 129,005,032.30
Business taxes and levies 6,113,907.38 6,903,480.46
General and administrative expenses 42,630,233.63 45,734,091.63
Financial expenses 67,316,429.52 81,794,162.95
Impairment loss of assets (121,978.29) (57,250.99)
Add: Investment income (XIV)7 75,925,377.89 95,214,130.68
Including: Income from investments in associates and
58,968,248.53 61,708,345.78
joint ventures
II. Operating profit 15,720,376.14 171,673,848.19
Add: Non-operating income 4,118,579.72 6,591,985.84
Including: Income from disposal of non-current assets 61,791.60 136,397.54
Less: Non-operating expenses 153,636.63 50,964.15
Including: Losses from disposal of non-current assets 129,101.96 46,964.15
III. Gross profit 19,685,319.23 178,214,869.88
Less: Income tax expenses (7,480,153.00) 29,332,643.13
IV. Net profit 27,165,472.23 148,882,226.75
V. Other comprehensive income post tax - -
VI. Total comprehensive income 27,165,472.23 148,882,226.75
The accompanying notes form an integral part of the financial statements.
-6-
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2015
Consolidated Cash Flow Statement
Unit: RMB
Amount for the Amount for the prior
ITEM Notes current period period
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 685,146,794.96 740,370,138.41
Receipts of tax refunds 21,649.57 -
Other cash receipts relating to operating activities (V)48(1) 45,379,011.23 48,651,708.77
Sub-total of cash inflows from operating activities 730,547,455.76 789,021,847.18
Cash payments for goods purchased and services received 132,064,953.07 126,480,316.05
Cash payments to and on behalf of employees 88,779,428.87 83,139,873.12
Payments of various taxes 138,290,674.66 127,912,997.88
Other cash payments relating to operating activities (V)48(2) 38,756,047.72 37,117,900.08
Sub-total of cash outflows from operating activities 397,891,104.32 374,651,087.13
Net Cash Flows from Operating Activities (V)49(1) 332,656,351.44 414,370,760.05
II. Cash Flows from Investing Activities:
Cash receipts from investment income 14,329,928.96 48,000,000.00
Net cash receipts from disposal of fixed assets, intangible assets and
other long-term assets 116,708.22 177,796.50
Other cash receipts relating to investing activities (V)48(3) 1,539,917,101.51 3,270,515,834.60
Sub-total of cash inflows from investing activities 1,554,363,738.69 3,318,693,631.10
Cash payments to acquire or construct fixed assets, intangible assets
and other long-term assets 542,802,310.11 743,934,266.68
Cash payments to acquire investments - 0.79
Other cash payments relating to investing activities (V)48(4) 1,325,010,000.00 2,974,017,722.00
Sub-total of cash outflows from investing activities 1,867,812,310.11 3,717,951,989.47
Net Cash Flows from Investing Activities (313,448,571.42) (399,258,358.37)
III. Cash Flows from Financing Activities:
Cash receipts from borrowings 510,134,281.57 206,505,698.16
Other cash receipts relating to financing activities (V)48(5) 6,000,000.00 566,726,161.82
Sub-total of cash inflows from financing activities 516,134,281.57 773,231,859.98
Cash repayments of borrowings 104,902,000.00 311,000,000.00
Cash payments for distribution of dividends or profits or settlement
of interest expenses 119,072,437.79 84,407,685.46
Including: cash payments for distribution of dividends or profits or
settlement of interest expenses to minority shareholders by - -
subsidiaries
Other cash payments relating to financing activities (V)48(6) 365,270,347.30 317,332,894.11
Sub-total of cash outflows from financing activities 589,244,785.09 712,740,579.57
Net Cash Flows from Financing Activities (73,110,503.52) 60,491,280.41
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash
(304,210.95) (180,190.54)
Equivalents
V. Net Increase (Decrease) in Cash and Cash Equivalents (54,206,934.45) 75,423,491.55
Add: Opening balance of Cash and Cash Equivalents (V)49(2) 375,328,861.18 299,905,369.63
VI. Closing Balance of Cash and Cash Equivalents (V)49(2) 321,121,926.73 375,328,861.18
The accompanying notes form part of the financial statements.
-7-
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2015
Cash Flow Statement of the Company
Unit: RMB
Amount for the Amount for the prior
ITEM Note current period period
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 184,501,086.75 355,205,645.97
Other cash receipts relating to operating activities 9,585,481.04 23,714,309.88
Sub-total of cash inflows from operating activities 194,086,567.79 378,919,955.85
Cash payments for goods purchased and services received 54,382,467.45 76,904,180.98
Cash payments to and on behalf of employees 50,215,506.96 47,147,198.02
Payments of various taxes 40,200,770.50 53,803,833.21
Other cash payments relating to operating activities 19,821,733.69 23,331,595.75
Sub-total of cash outflows from operating activities 164,620,478.60 201,186,807.96
Net Cash Flows from Operating Activities (XIV)8 29,466,089.19 177,733,147.89
II. Cash Flows from Investing Activities:
Cash receipts from investment income 14,329,928.96 48,000,000.00
Net cash receipts from disposal of fixed assets, intangible assets and
other long-term assets 32,530.00 -
Other cash receipts relating to investing activities 1,535,950,412.74 3,719,973,553.19
Sub-total of cash inflows from investing activities 1,550,312,871.70 3,767,973,553.19
Cash payments to acquire or construct fixed assets, intangible assets
and other long-term assets 10,683,480.40 18,665,765.86
Cash payments to acquire investments 31,820,000.00 -
Other cash payments relating to investing activities 1,448,542,578.23 3,758,106,643.14
Sub-total of cash outflows from investing activities 1,491,046,058.63 3,776,772,409.00
Net Cash Flows from Investing Activities 59,266,813.07 (8,798,855.81)
III. Cash Flows from Financing Activities:
Cash receipts from borrowings 400,000,000.00 18,775,995.42
Other cash receipts relating to financing activities 7,955,511.01 308,300,829.03
Sub-total of cash inflows from financing activities 407,955,511.01 327,076,824.45
Cash repayments of borrowings 101,300,000.00 311,000,000.00
Cash payments for distribution of dividends or profits or settlement of
interest expenses 103,713,804.74 77,387,329.05
Other cash payments relating to financing activities 372,410,740.60 56,873,004.37
Sub-total of cash outflows from financing activities 577,424,545.34 445,260,333.42
Net Cash Flows from Financing Activities (169,469,034.33) (118,183,508.97)
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash
(632,046.89) 1,456.29
Equivalents
V．Net Increase (Decrease) in Cash and Cash Equivalents (81,368,178.96) 50,752,239.40
Add: Opening balance of Cash and Cash Equivalents (XIV)8 110,176,958.92 59,424,719.52
VI. Closing Balance of Cash and Cash Equivalents (XIV)8 28,808,779.96 110,176,958.92
The accompanying notes form part of the financial statements.
-8-
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2015
Consolidated Statement of Changes in Shareholders' Equity
Unit: RMB
Amount for the current period Amount for the same period of last year
Attributable to shareholders of the Company Attributable to shareholders of the Company
Total Total
Other comprehensive shareholders' Other comprehensive Unappropriated shareholders'
ITEM Share capital Capital reserve income Special reserve Surplus reserve Unappropriated profits Minority interests equity Share capital Capital reserve income Special reserve Surplus reserve profits Minority interests equity
I. Closing balance of the preceding year 230,600,000.00 234,141,186.09 652,079.14 4,240,147.49 307,084,630.25 913,767,989.40 297,936,230.92 1,988,422,263.29 230,600,000.00 234,141,186.09 - 2,622,730.81 284,684,747.72 720,937,883.66 278,402,587.59 1,751,389,135.87
Add: Changes in accounting policies - - - - - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - - - - - -
Business combination involving entities under
- - - - - - - - - - 603,045.89 - - (3,314,195.62) (793,438.85) (3,504,588.58)
common control
II. Opening balance of the current year 230,600,000.00 234,141,186.09 652,079.14 4,240,147.49 307,084,630.25 913,767,989.40 297,936,230.92 1,988,422,263.29 230,600,000.00 234,141,186.09 603,045.89 2,622,730.81 284,684,747.72 717,623,688.04 277,609,148.74 1,747,884,547.29
III. Changes for the year - - - 1,701,623.99 10,160,658.56 51,736,861.93 19,070,101.09 82,669,245.57 - - 49,033.25 1,617,416.68 22,399,882.53 196,144,301.36 20,327,082.18 240,537,716.00
(I) Comprehensive income - - - - - 91,644,920.49 19,027,674.41 110,672,594.90 - - 49,033.25 - - 218,544,184.50 20,327,082.36 238,920,300.11
(II) Owners' contributions and reduction in
- - - - - - - - - - - - - (0.61) (0.18) (0.79)
capital
1. Capital contribution from owners - - - - - - - - - - - - - - - -
2. Capital contribute from other equity
- - - - - - - - - - - - - - - -
instrument holders
3. Share-based payment recognized in owners'
- - - - - - - - - - - - - - - -
equity
4. Effect of business combination involving
- - - - - - - - - - - - - (0.61) (0.18) (0.79)
entities under common control
(III) Profit distribution - - - - 10,160,658.56 (39,908,058.56) - (29,747,400.00) - - - - 22,399,882.53 (22,399,882.53) - -
1. Transfer to surplus reserve - - - - 10,160,658.56 (10,160,658.56) - - - - - - 22,399,882.53 (22,399,882.53) - -
2. General Risk Provision - - - - - - - - - - - - - - - -
3. Distributions to shareholders - - - - - (29,747,400.00) - (29,747,400.00) - - - - - - - -
4. Others - - - - - - - - - - - - - - - -
(IV) Transfers within owners' equity - - - - - - - - - - - - - - - -
1. Capitalization of capital reserve - - - - - - - - - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - - - - - - - - - -
3. Loss offset by surplus reserve - - - - - - - - - - - - - - - -
4. Others - - - - - - - - - - - - - - - -
(VI) Special reserve - - - 1,701,623.99 - - 42,426.68 1,744,050.67 - - - 1,617,416.68 - - - 1,617,416.68
1. Transfer to special reserve in the period - - - 2,539,292.54 - - 56,404.62 2,595,697.16 - - - 2,401,076.31 - - - 2,401,076.31
2. Amount utilized in the period - - - (837,668.55) - - (13,977.94) (851,646.49) - - - (783,659.63) - - - (783,659.63)
IV. Closing balance of the current year 230,600,000.00 234,141,186.09 652,079.14 5,941,771.48 317,245,288.81 965,504,851.33 317,006,332.01 2,071,091,508.86 230,600,000.00 234,141,186.09 652,079.14 4,240,147.49 307,084,630.25 913,767,989.40 297,936,230.92 1,988,422,263.29
The accompanying notes form an integral part of the financial statements.
-9-
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
FOR THE YEAR ENDED 31 DECEMBER 2015
Statement of Changes in Shareholders' Equity of the Company
Unit: RMB
Amount for the current period Amount for the same period of last year
Attributable to shareholders of the Company Total Attributable to shareholders of the Company
Unappropriated shareholders' Unappropriated Total shareholders'
ITEM Share capital Capital reserve Special reserve Surplus reserve profits equity Share capital Capital reserve Special reserve Surplus reserve profits equity
I. Closing balance of the preceding
230,600,000.00 204,534,849.49 4,103,762.23 307,084,630.25 743,258,408.62 1,489,581,650.59 230,600,000.00 204,534,849.49 2,533,941.99 284,684,747.72 616,776,064.40 1,339,129,603.60
year
Add: Changes in accounting policies - - - - - - - - - - - -
Corrections of prior period errors - - - - - - - - - - - -
Others - - - - - - - - - - - -
II. Opening balance of the current
230,600,000.00 204,534,849.49 4,103,762.23 307,084,630.25 743,258,408.62 1,489,581,650.59 230,600,000.00 204,534,849.49 2,533,941.99 284,684,747.72 616,776,064.40 1,339,129,603.60
year
III. Changes for the year - - 1,672,225.45 10,160,658.56 (12,742,586.33) (909,702.32) - - 1,569,820.24 22,399,882.53 126,482,344.22 150,452,046.99
(I) Comprehensive income - - - - 27,165,472.23 27,165,472.23 - - - - 148,882,226.75 148,882,226.75
(II) Owners' contributions and - - - - -
- - - - - - -
reduction in capital
1. Capital contribution from owners - - - - - - - - - - - -
2. Capital contribute from other - - - - -
- - - - - - -
equity instrument holders
3. Share-based payment recognized - - - - -
- - - - - - -
in owners' equity
4. Others - - - - - - - - - - - -
(III) Profit distribution - - - 10,160,658.56 (39,908,058.56) (29,747,400.00) - - - 22,399,882.53 ( 22,399,882.53) -
1. Transfer to surplus reserve - - - 10,160,658.56 (10,160,658.56) - - - - 22,399,882.53 ( 22,399,882.53) -
2. General Risk Provision - - - - - - - - - - - -
3. Distributions to shareholders - - - - (29,747,400.00) (29,747,400.00) - - - - - -
4. Others - - - - - - - - - - - -
(IV) Transfers within owners' equity - - - - - - - - - - - -
1. Capitalization of capital reserve - - - - - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - - - - - -
3. Loss offset by surplus reserve - - - - - - - - - - - -
4. Others - - - - - - - - - - - -
(V) Special reserve - - 1,672,225.45 - - 1,672,225.45 - - 1,569,820.24 - - 1,569,820.24
1. Transfer to special reserve in the - - -
- - 2,423,047.32 - - 2,423,047.32 - 2,337,529.68 2,337,529.68
period
2. Amount utilized in the period - - (750,821.87) - - (750,821.87) - - (767,709.44) - - (767,709.44)
IV. Closing balance of the current
230,600,000.00 204,534,849.49 5,775,987.68 317,245,288.81 730,515,822.29 1,488,671,948.27 230,600,000.00 204,534,849.49 4,103,762.23 307,084,630.25 743,258,408.62 1,489,581,650.59
year
The accompanying notes form an integral part of the financial statements.
- 10 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(I) BASIC INFORMATION ABOUT THE COMPANY
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (the "Company")was registered and
established on 4 January 1984 in Shenzhen, Guangdong Province.
Pursuant to the approval of Shen Fu Ban Han (1995) No. 112 issued by the General Office of
Shenzhen Municipal People's Government and Shen Zheng Ban Fu (1995) No.33 issued by
Shenzhen Securities Administration Office, the Company publicly issued domestic listed foreign
shares (B-Share) on 21 June 1995. Pursuant to the Listing Notice of Shen Zheng Shi Zi (1995)
No.14, issued by Shenzhen Stock Exchange, the Company's shares were listed and traded on
Shenzhen Stock Exchange on 28 July 1995.
The Headquarter of the Company locatesin Shenzhen, Guangdong Province.The main business of
the Company and its subsidiaries (the "Group") include: terminal and port operation services;
lease of stack area, storage and office building; provision of labor service, cargo handling and
transportation, equipment lease, supply of water, power and oil, and agency services for offshore
crude oil logistics; operating bonded warehouse and stack area, and commercial car park
operation.
The Company'sfinancial statements and the Group's consolidated financial statements are
approved by the Board of directors on 22 April 2016.
The scope of consolidated financial statements in the current period involves 36subsidiaries. See
Note (VII) "Equity in other entities" for details. Changes of scope are new subsidiaries set up in
the current period. See Note (VI) "Changes of consolidation scope" for details.
(II) BASIS OFPREPARATIONOFFINACIALSTATEMENTS
Basis of preparation
The Group has adopted the Accounting Standards for Business Enterprises (the "ASBEs") issued
by the Ministry of Finance (the "MoF"), including standards newly issued and amended in 2014.
In addition, the Group has disclosed relevant financial information in accordance with
Information Disclosure and Presentation Rules for Companies Offering Securities to the Public
No. 15 - General Provisions on Financial Reporting (Revised in 2014).
Basis of 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 in the financial statements. Where assets are impaired, provisions for asset
impairment are made in accordance with the relevant requirements.
- 11 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(II) BASIS OFPREPARATIONOFFINACIALSTATEMENTS- continued
Basis of accounting and principle of measurement - continued
Under the historical cost measurement, asset should be measured at the value of cash or cash
equivalents or fair value paid to acquire the asset, whereas liability should be measured at the
value of cash or assets received due to shoulder present obligation, or at the contract amount of
shouldering present obligation, or at the value of cash or cash equivalents expected to pay for the
liability in routine activities.
Under the historical cost measurement, asset should be measured at the value of cash or cash
equivalents or fair value paid to acquire the asset, whereas liability should be measured at the
value of cash or assets received due to shoulder present obligation, or at the contract amount of
shouldering present obligation, or at the value of cash or cash equivalents expected to pay for the
liability in routine activities.
Pursuant to the observation of input value and the significance of the input value on the whole,
measurements of fair value are divided into the below three levels:
Level 1 input value is the unadjusted price of equivalent assets or liability which can be acquired
in an active market on the measurement date.
Level 2 input value is assets or liability except for those in Level 1, which are observable for the
asset or liability, either directly or indirectly
Level 3 input value is assets or liability which cannot be observed.
Going concern
The Group evaluated its going concern ability within 12 months since 31 December 2015. There
are no events or circumstances that may cast significant doubt upon the entity's ability to
continue as a going concern, Hence, the financial statements have been prepared on a going
concern basis.。
(III) SIGNIFICANT ACCOUNTING POLICIES, and ACCOUNTING ESTIMATES
1. Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with the ASBEs, and
present truly and completely, the Company's and consolidated financial position as of 31
December 2015, and the Company's and consolidated results of operations and cash flows for the
year then ended.
2. Accounting period
The Group has adopted the calendar year as its accounting year, i.e. from 1 January to 31
December.
- 12 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
3、Business Cycle
Buginese cycle is referred to the period from which an enterprise buys assets to manufacture to the date it
achieves cash or cash equivalents.
4. Functional currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company
and its subsidiaries in the People's Republic of China (the "PRC") operate. Therefore, the
Company and its subsidiaries choose RMB as their functional currency. The Group adopts RMB
to prepare its financial statements.
5. The accounting treatment of business combinations involving enterprises under common
control and business combinations not involving enterprises under common control
Business combinations are classified into business combinations involving enterprises under
common control and business combinations not involving enterprises under common control.
5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in
which all of the combining enterprises are ultimately controlled by the same party or parties both
before and after the combination, and that control is not transitory.
Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded
by the combining entities at the date of the combination. The difference between the carrying
amount of the net assets obtained and the carrying amount of the consideration paid for the
combination is adjusted to the share premium in capital reserve. If the share premium is not
sufficient to absorb the difference, any excess shall be adjusted against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in
which they are incurred.
5.2 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business
combination in which all of the combining enterprises are not ultimately controlled by the same
party or parties before and after the combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets
given, liabilities incurred or assumed, and equity securities issued by the acquirer in exchange for
control of the acquiree. The intermediary expenses incurred by the acquirer in respect of auditing,
legal services, valuation and consultancy services, etc. and other associated administrative
expenses attributable to the business combination are recognized in profit or loss when they are
incurred.
- 13 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
5. The accounting treatment of business combinations involving enterprises under common
control and business combinations not involving enterprises under common control - continued
5.2 Business combinations not involving enterprises under common control and goodwill -continued
The acquiree's identifiable assets, liabilities and contingent liabilities, acquired by the acquirer in
a business combination, that meet the recognition criteria shall be measured at fair value at the
acquisition date.
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's
identifiable net assets, the difference is treated as an asset and recognized as goodwill, which is
measured at cost on initial recognition. Where the cost of combination is less than the acquirer's
interest in the fair value of the acquiree's identifiable net assets, the acquirer firstly reassesses the
measurement of the fair values of the acquiree's identifiable assets, liabilities and contingent
liabilities and measurement of the cost of combination. If after that reassessment, the cost of
combination is still less than the acquirer's interest in the fair value of the acquiree's identifiable
net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the
current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment
losses, and is presented separately in the consolidated financial statements.
6. Preparation of consolidated financial statements
The scope of consolidation in the consolidated financial statements is determined on the basis of
control. Control is the power to govern the financial and operating policies of an enterprise so as
to obtain benefits from its operating activities.
For a subsidiary disposed of by the Group, the operating results and cash flows before the date of
disposal (the date when control is lost) are included in the consolidated income statement and
consolidated statement of cash flows, as appropriate.
For a subsidiary acquired through a business combination not involving enterprises under
common control, the operating results and cash flows from the acquisition date (the date when
control is obtained) are included in the consolidated income statement and consolidated statement
of cash flows, as appropriate, and no adjustment is made to the opening balances and comparative
figures in the consolidated financial statements.
No matter when the business combination occurs in the reporting period, subsidiaries acquired
through a business combination involving enterprises under common control are included in the
Group's scope of consolidation as if they had been included in the scope of consolidation from the
date when they first came under the common control of the ultimate controlling party. Their
operating results and cash flows from the beginning of the earliest reporting period are included in
the consolidated income statement and consolidated statement of cash flows, as appropriate.
The significant accounting policies and accounting periods adopted by the subsidiaries are determined
based on the uniform accounting policies and accounting periods set out by the Company.
- 14 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
6. Preparation of consolidated financial statements - continued
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the Company is treated as minority
interests and presented as "minority interests" in the consolidated balance sheet within
shareholders' equity. The portion of net profits or losses of subsidiaries for the period attributable
to minority interests is presented as "minority interests" in the consolidated income statement
below the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary
exceeds the minority shareholders' portion of the opening balance of owners' equity of the
subsidiary, the excess amount are still allocated against minority interests.
Acquisition of minority interests or disposal of interest in a subsidiary that does not result in the
loss of control over the subsidiary is accounted for as equity transactions. The carrying amounts
of the Company's interests and minority interests are adjusted to reflect the changes in their
relative interests in the subsidiary. The difference between the amount by which the minority
interests are adjusted and the fair value of the consideration paid or received is adjusted to capital
reserve under owners' equity. If the capital reserve is not sufficient to absorb the difference, the
excess are adjusted against retained earnings.
7. Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash
equivalents are the Group's short-term, highly liquid investments that are readily convertible to
known amounts of cash and which are subject to an insignificant risk of changes in value.
8. Translation of transactions and financial statements denominated in foreign currencies
8.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying [the spot exchange
rate on the date of the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot
exchange rates at the balance sheet date. Exchange differences arising from the differences
between the spot exchange rates prevailing at the balance sheet date and those on initial
recognition or at the previous balance sheet date are recognized in profit or loss for the period,
except that (1) exchange differences related to a specific-purpose borrowing denominated in
foreign currency that qualify for capitalization are capitalized as part of the cost of the qualifying
asset during the capitalization period; (2) exchange differences related to hedging instruments for
the purpose of hedging against foreign currency risks are accounted for using hedge accounting;
(3) exchange differences arising from available-for-sale non-monetary items (such as shares)
denominated in foreign currencies and changes in the carrying amounts (other than the amortized
cost) of available-for-sale monetary items are recognized as other comprehensive income.
- 15 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
8. Translation of transactions and financial statements denominated in foreign currencies -
continued
8.1 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 and the amounts in
functional currency remain unchanged. Foreign currency non-monetary items measured at fair
value are re-translated at the spot exchange rate on the date the fair value is determined.
Difference between the re-translated functional currency amount and the original functional
currency amount is treated as changes in fair value (including changes of exchange rate) and is
recognized in profit and loss or as other comprehensive income.
8.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a
foreign operation are translated from the foreign currency into RMB using the following method:
assets and liabilities on the balance sheet are translated at the spot exchange rate prevailing at the
balance sheet date; shareholders' equity items except for retained earnings are translated at the
spot exchange rates at the dates on which such items arose; all items in the income statement as
well as items reflecting the distribution of profits are translated at the spot exchange rates on the
dates of the transactions; the opening balance of retained earnings is the translated closing balance
of the previous year's retained earnings; the closing balance of retained earnings is calculated and
presented on the basis of each translated income statement and profit distribution item. The
difference between the translated assets and the aggregate of liabilities and shareholders' equity
items is separately presented as the exchange differences arising on translation of financial
statements denominated in foreign currencies under the shareholders' equity in the balance sheet.
Cash flows arising from a transaction in foreign currency and the cash flows of a foreign
subsidiary are translated at an exchange rate which approximates the spot exchange rate on the
date of the cash flows. The effect of exchange rate changes on cash and cash equivalents is
regarded as a reconciling item and presented separately in the cash flow statement as "effect
ofexchange rate changes on cash and cash equivalents".
The opening balances and the comparative figures of previous year are presented at the translated
amounts in the previous year's financial statements.
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a
foreign operation due to disposal of certain interest in it or other reasons, the Group transfers the
accumulated exchange differences arising on translation of financial statements of this foreign
operation attributable to the owners' equity of the Company and presented under shareholders'
equity, to profit or loss in the period in which the disposal occurs.
- 16 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
8. Translation of transactions and financial statements denominated in foreign currencies -
continued
8.2 Translation of financial statements denominated in foreign currencies - continued
In case of a disposal or other reason that does not result in the Group losing control over a foreign
operation, the proportionate share of accumulated exchange differences arising on translation of
financial statements are re-attributed to minority interests and are not recognized in profit and loss.
For partial disposals of equity interests in foreign operations which are associates or joint ventures,
the proportionate share of the accumulated exchange differences arising on translation of financial
statements of foreign operations is reclassified to profit or loss.
9. Financial instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to the
contractual provisions of the instrument. Financial assets and financial liabilities are initially
measured at fair value. For financial assets and financial liabilities at fair value through profit or
loss, transaction costs are immediately recognized in profit or loss. For other financial assets and
financial liabilities, transaction costs are included in their initial recognized amounts.
9.1Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset or a
financial liability (or a group of financial assets or financial liabilities) and of allocating the
interest income or interest expense over the relevant period, using the effective interest rate. The
effective interest rate is the rate that exactly discounts estimated future cash flows through the
expected life of the financial asset or financial liability or, where appropriate, a shorter period to
the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group estimates future cash flows considering all
contractual terms of the financial asset or financial liability (without considering future credit
losses), and also considers all fees paid or received between the parties to the contract giving rise
to the financial asset and financial liability that are an integral part of the effective interest rate,
transaction costs, and premiums or discounts, etc.
9.2 Classification, recognition and measurement of financial assets
On initial recognition, the Group's financial assets are classified into one of the four categories,
including financial assets at fair value through profit or loss, held-to-maturity investments, loans
and receivables, and available-for-sale financial assets. All regular way purchases or sales of
financial assets are recognized and derecognized on a trade date basis.
- 17 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
9. Financial instruments - continued
9.2 Classification, recognition and measurement of financial assets - continued
9.2.1. Financial assets at fair value through profit or loss ("FVTPL")
Financial assets at FVTPL include financial assets held for trading and those designated as at fair
value through profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (i)
It has been acquired principally for the purpose of selling in the near term; or (ii) On initial
recognition it is part of a portfolio of identified financial instruments that the Group manages
together and there is objective evidence that the Group has a recent actual pattern of short-term
profit-taking; or (iii) It is a derivative that is not designated and effective as a hedging instrument,
or a financial guarantee contract, or a derivative that is linked to and must be settled by delivery of
an unquoted equity instrument (without a quoted price in an active market) whose fair value
cannot be reliably measured.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the
following conditions is satisfied: (i) Such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise result from measuring assets or
recognizing the gains or losses on them on different bases; or (ii) The financial asset forms part of
a group of financial assets or a group of financial assets and financial liabilities, which is managed
and its performance is evaluated on a fair value basis, in accordance with the Group's documented
risk management or investment strategy, and information about the grouping is reported to key
management personnel on that basis; (iii) Hybrid instruments associated with embedded
derivatives and financial assets measured at fair value and of which changes are recorded into the
profits and losses as specified in Accounting Standard for Business Enterprises No.22 - Financial
Recognition and Measurement of Instruments.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising
from changes in the fair value and any dividend or interest income earned on the financial assets
are recognized in profit or loss.
9.2.2 Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturity dates that the Group's management has the positive intention and
ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost using the effective
interest method. Gain or loss arising from DE recognition, impairment or amortization is
recognized in profit or loss.
- 18 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
9. Financial instruments - continued
9.2 Classification, recognition and measurement of financial assets - continued
9.2.3. Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments
that are not quoted in an active market. Financial assets classified as loans and receivables by the
Group include accounts receivable, interest receivable, dividends receivable, and other
receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest
method. Gain or loss arising from DE recognition, impairment or amortization is recognized in
profit or loss.
9.2.4. Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on
initial recognition as available for sale, and financial assets that are not classified as financial
assets at fair value through profit or loss, loans and receivables or held-to-maturity investments.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses
arising from changes in the fair value are recognized as other comprehensive income, except that
impairment losses and exchange differences related to amortized cost of monetary financial assets
denominated in foreign currencies are recognized in profit or loss, until the financial assets are
derecognized, at which time the gains or losses are released and recognized in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the
available-for-sale financial assets are held, are recognized in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and
whose fair value cannot be reliably measured, and derivative financial assets which are linked to
and must be settled by delivery of such unquoted equity instruments, are measured at cost.
9.3 Impairment of financial assets
The Group assesses at each balance sheet date the carrying amounts of financial assets other than
those at fair value through profit or loss. If there is objective evidence that a financial asset is
impaired, the Group determines the amount of any impairment loss. Objective evidence that a
financial asset is impaired is evidence that, arising from one or more events that occurred after the
initial recognition of the asset, the estimated future cash flows of the financial asset, which can be
reliably measured, have been affected.
- 19 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
9. Financial instruments - continued
9.3 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 operates, indicating that the cost of the investment in the equity instrument
may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument
below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortized cost
If financial assets carried at amortized cost are impaired, the carrying amounts of the financial
assets are reduced to the present value of estimated future cash flows (excluding future credit
losses that have not been incurred) discounted at the financial asset's original effective interest
rate. The amount of reduction is recognized as an impairment loss in profit or loss. If, subsequent
to the recognition of an impairment loss on financial assets carried at amortized cost, there is
objective evidence of a recovery in value of the financial assets which can be related objectively
to an event occurring after the impairment is recognized, the previously recognized impairment
loss is reversed. However, the reversal is made to the extent that the carrying amount of the
financial asset at the date the impairment is reversed does not exceed what the amortized cost
would have been had the impairment not been recognized.
For a financial asset that is individually significant, the Group assesses the asset individually for
impairment. For a financial asset that is not individually significant, the Group assesses the asset
individually for impairment or includes the asset in a group of financial assets with similar credit
risk characteristics and collectively assesses them for impairment. If the Group determines that no
objective evidence of impairment exists for an individually assessed financial asset (whether
significant or not), it includes the asset in a group of financial assets with similar credit risk
characteristics and collectively reassesses them for impairment. Assets for which an impairment
loss is individually recognized are not included in a collective assessment of impairment.
- 20 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
9. Financial instruments - continued
9.3 Impairment of financial assets - continued
- Impairment of available-for-sale financial assets
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in
fair value previously recognized directly in capital reserve is reclassified from the capital reserve
to profit or loss. The amount of the cumulative loss that is reclassified from capital reserve to
profit or loss is the difference between the acquisition cost (net of any principal repayment and
amortization) and the current fair value, less any impairment loss on that financial asset
previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there
is objective evidence of a recovery in value of the financial assets which can be related
objectively to an event occurring after the impairment is recognized, the previously recognized
impairment loss is reversed. The amount of reversal of impairment loss on available-for-sale
equity instruments is recognized as other comprehensive income, while the amount of reversal of
impairment loss on available-for-sale debt instruments is recognized in profit or loss.
- Impairment of financial assets measured at cost
If an impairment loss has been incurred on an investment in unquoted equity instrument (without
a quoted price in an active market) whose fair value cannot be reliably measured, or on a
derivative financial asset that is linked to and must be settled by delivery of such an unquoted
equity instrument, the carrying amount of the financial asset is reduced to the present value of
estimated future cash flows discounted at the current market rate of return for a similar financial
asset. The amount of reduction is recognized as an impairment loss in profit or loss. The
impairment loss on such financial asset is not reversed once it is recognized.
9.4 Transfer of financial assets
The Group derecognizes a financial asset if one of the following conditions is satisfied: (1) the
contractual rights to the cash flows from the financial asset expire; or (2) the financial asset has
been transferred and substantially all the risks and rewards of ownership of the financial asset is
transferred to the transferee; or (3) although the financial asset has been transferred, the Group
neither transfers nor retains substantially all the risks and rewards of ownership of the financial
asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a
financial asset, and it retains control of the financial asset, it recognizes the financial asset to the
extent of its continuing involvement in the transferred financial asset and recognizes an associated
liability. The extent of the Group's continuing involvement in the transferred asset is the extent to
which it is exposed to changes in the value of the transferred asset.
- 21 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
9. Financial instruments - continued
9.4 Transfer of financial assets- continued
For a transfer of a financial asset in its entirety that satisfies the DE recognition criteria, the
difference between (1) the carrying amounts of the financial asset transferred; and (2) the sum of
the consideration received from the transfer and any cumulative gain or loss that has been
recognized in other comprehensive income is recognized in profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the
transferred financial asset is allocated between the part that continues to be recognized and the part that
is derecognized, based on the respective fair values of those parts. The difference between (1) the
carrying amount allocated to the part derecognized; and (2) the sum of the consideration received for the
part derecognized and any cumulative gain or loss allocated to the part derecognized which has been
previously recognized in other comprehensive income, is recognized in profit or loss.
9.5 Classification, recognition and measurement of financial liabilities
Debt and equity instruments issued by the Group are classified into financial liabilities or equity
on the basis of the substance of the contractual arrangements and definitions of financial liability
and equity instrument.
On initial recognition, financial liabilities are classified into financial liabilities at fair value
through profit or loss and other financial liabilities.
9.5.1 Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL consist of financial liabilities held for trading and those designated
as at FVTPL on initial recognition.
A financial liability is classified as held for trading if one of the following conditions is satisfied:
(1) It has been acquired principally for the purpose of repurchasing in the near term; or (2) On
initial recognition it is part of a portfolio of identified financial instruments that the Group
manages together and there is objective evidence that the Group has a recent actual pattern of
short-term profit-taking; or (3) It is a derivative, except for a derivative that is a designated and
effective hedging instrument, or a financial guarantee contract, or a derivative that is linked to and
must be settled by delivery of an unquoted equity instrument (without a quoted price in an active
market) whose fair value cannot be reliably measured.
- 22 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
9. Financial instruments - continued
9.5 Classification, recognition and measurement of financial liabilities - continued
9.5.1 Financial liabilities at fair value through profit or loss - continued
A financial liability may be designated as at FVTPL upon initial recognition only when one of the
following conditions is satisfied: (1) Such designation eliminates or significantly reduces a
measurement or recognition inconsistency that would otherwise result from measuring liabilities
or recognizing the gains or losses on them on different bases; or (2) The financial liability forms
part of a group of financial liabilities or a group of financial assets and financial liabilities, which
is managed and its performance is evaluated on a fair value basis, in accordance with the Group's
documented risk management or investment strategy, and information about the grouping is
reported to key management personnel on that basis; (3) Hybrid instruments associated with
embedded derivatives and financial liabilities measured at fair value and of which changes are
recorded into the profits and losses as specified in Accounting Standard for Business Enterprises
No.22 - Recognition and Measurement of Financial Instruments.
Financial liabilities at FVTPL are subsequently measured at fair value. Any gains or losses arising
from changes in the fair value or any dividend or interest expenses related to the financial
liabilities are recognized in profit or loss.
9.5.2 Other financial liabilities
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity
instrument (without a quoted price in an active market) whose fair value cannot be reliably
measured, it is subsequently measured at cost. Other financial liabilities (excluding liabilities with
financial guarantee contracts) are subsequently measured at amortized cost using the effective
interest method, with gains or losses arising from derecognition or amortizationrecognized in
profit or loss.
9.5.3. Financial guarantee contracts
A financial guarantee contract is a contract by which the guarantor and the lender agree that the
guarantor would settle the debts or bear obligations in accordance with terms of the contract in
case the borrower fails to settle the debts. Financial guarantee contracts that are not designated as
financial liabilities at fair value through profit or loss are initially measured at their fair values less
the directly attributable transaction costs. Subsequent to initial recognition, they are measured at
the higher of: (i) the amount determined in accordance with Accounting Standard for Business
Enterprises No. 13 - Contingencies; and (ii) the amount initially recognized less cumulative
amortizationrecognized in accordance with the principles set out in Accounting Standard for
Business Enterprises No. 14 - Revenue.
- 23 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
9. Financial instruments - continued
9.6 Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) only when the underlying present
obligation (or part of it) is discharged. An agreement between the Group (an existing borrower)
and an existing lender to replace the original financial liability with a new financial liability with
substantially different terms is accounted for as an extinguishment of the original financial
liability and the recognition of a new financial liability.
When the Group derecognizes a financial liability or a part of it, it recognizes the difference
between the carrying amount of the financial liability (or part of the financial liability)
derecognized and the consideration paid (including any non-cash assets transferred or new
financial liabilities assumed) in profit or loss.
9.7 Derivatives and embedded derivatives
Derivatives are initially measured at fair value at the date when the derivative contracts are
entered into and are subsequently re-measured at fair value. The resulting gain or loss is
recognized in profit or loss unless the derivative is designated and highly effective as a hedging
instrument, in which case the timing of the recognition in profit or loss depends on the nature of
the hedge relationship.
An embedded derivative is separated from the hybrid instrument, where the hybrid instrument is
not designated as a financial asset or financial liability at fair value through profit or loss, and
treated as a standalone derivative if 1) the economic characteristics and risks of the embedded
derivative are not closely related to the economic characteristics and risks of the host contract; and
2) a separate instrument with the same terms as the embedded derivative would meet the
definition of a derivative. If the Group is unable to measure the embedded derivative separately
either at acquisition or at a subsequent balance sheet date, it designates the entire hybrid
instrument as a financial asset or financial liability at fair value through profit or loss.
9.8 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized financial
assets and financial liabilities, and intends either to settle on a net basis, or to realize the financial
asset and settle the financial liability simultaneously, a financial asset and a financial liability shall
be offset and the net amount is presented in the balance sheet. Except for the above circumstances,
financial assets and financial liabilities shall be presented separately in the balance sheet and shall
not be offset.
- 24 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
9. Financial instruments - continued
9.9 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group
after deducting all of its liabilities. The consideration received from issuing equity instruments
and net of transaction costs, are added to shareholders' equity.
All types of distributions (excluding stock dividends) made by the Group to holders of
equityinstruments, are deducted from shareholders' equity. The Group does not recognize any
changes in the fair value of equity instruments.
10. Receivables
10.1 Receivables for which bad debt provision is collectively assessed on a portfolio basis
Basis or monetary criteria for A receivable that exceeds RMB 1 million (including RMB 1
determining an individually million) is deemed as an individually significant receivable by
significant receivable the Group.
For receivables that are individually significant, the Group
assesses the receivables individually for impairment. For a
Method of determining provision for financial asset that is not impaired individually, the Group
receivables that are individually includes the asset in a group of financial assets with similar
significant and for which bad debt credit risk characteristics and collectively assesses them for
provision is individually assessed impairment. Receivables for which an impairment loss is
individually recognized are not included in a collective
assessment of impairment.
10.2 Receivables for which bad debt provision is collectively assessed on a portfolio basis:
Basis for determining a portfolio
Portfolio 1 Receivables from government, petty cash advanced to
employees, security deposit, and receivables from related
parties of the Company and its subsidiaries. Bad debt provision
is not recognized for such receivables since the possibility of
incurring bad debt losses is remote.
Portfolio 2 Portfolio 2 mainly includes receivablesarising from operating
activities other than Portfolio 1.
Bad debt provision method for a portfolio
Portfolio 1 No bad debt provision
Portfolio 2 Based on percentage of accounts balances
- 25 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
10. Receivables - continued
10.2 Receivables for which bad debt provision is collectively assessed on a portfolio basis: -
continued
10.2.1 Portfolios where percentage of accounts receivable method is used for bad debt provision:
Provision as a proportion Provision as a proportion
Name of portfolio of accounts receivable (%) of other receivables (%)
Portfolio 2 1.00 1.00
10.3 Receivables that are not individually significant but for which bad debt provision is
individually assessed:
Reasons for making individual bad debt Significant difference between the carrying amount of
provision accounts receivable and the present value of estimated
future cash flows
Bad debt provision methods Standalone impairment test is carried out and impairment
losses are recognized based on the difference between the
carrying amount and the present value of estimated future
cash flows.
11. Inventories
11.1 Categories of inventories
The Group's inventories mainly include raw materials and maintenance accessories etc.
Inventories are initially measured at cost. Cost of inventories comprises all costs of purchase,
costs of conversion and other expenditures incurred in bringing the inventories to their present
location and condition.
11.2 Valuation method of inventories upon delivery
The actual cost of inventories upon delivery is calculated using the weighted average method.
11.3 Basis for determining net 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 net realizable value is below the cost of inventories, 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, and
takes into consideration the purposes of holding inventories and effect of post balance sheet
events.
- 26 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
11. Inventories - continued
11.3 Basis for determining net realizable value of inventories and provision methods for decline in
value of inventories - continued
Provision for decline in value of 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.
11.4 Inventory count system
The perpetual inventory system is maintained for stock system.
12. Long-term equity investments
12.1 Basis for determining joint control and significant influence over investee
Control is the power to govern the financial and operating policies of an entity so as to obtain
benefits from its activities. Joint control is the contractually agreed sharing of control over an
economic activity, and exists only when the strategic financial and operating policy decisions
relating to the activity require the unanimous consent of the parties sharing control. Significant
influence is the power to participate in the financial and operating policy decisions of the investee
but is not control or joint control over those policies. When determining whether an investing
enterprise is able to exercise control or significant influence over an investee, the effect of
potential voting rights of the investee (for example, warrants and convertible debts) held by the
investing enterprises or other parties that are currently exercisable or convertible shall be
considered.
12.2 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises
under common control, the investment cost of the long-term equity investment is the attributable
share of the carrying amount of the shareholders' equity of the acquiree at the date of combination.
For a long-term equity investment acquired through business combination not involving
enterprises under common control, the investment cost of the long-term equity investment is the
cost of acquisition. For a long-term equity investment acquired through business combination not
involving enterprises under common control and achieved in stages, the investment cost of the
long-term equity investment is the aggregate of the carrying amount of the equity interest held in
the acquiree prior to the acquisition date and the cost of the additional investment at the
acquisition date. The long-term equity investment acquired otherwise than through a business
combination is initially measured at its cost.
- 27 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
12. Long-term equity investments- continued
12.2 Determination of investment cost - continued
Other long-term equity investments acquired through methods other than business combination,
shall be recorded at cost initially. According to CAS No.22 – Financial Instrument Recognition
and Measurement, if the investor can exert significant influence on the investee or implement
co-control but not solely-control, the cost of long-term investment shall be the fair value plus the
newly invested cost.
12.3 Subsequent measurement and recognition of profit or loss
12.3.1. Long-term equity investment accounted for using the cost method
For long-term equity investments over which the Group does not have joint control or significant
influence and without quoted prices in an active market and that fair values cannot be reliably
measured, the Group accounts for such long-term equity investments using the cost method.
Besides, long-term equity investments in subsidiaries are accounted for using the cost method in
the Company's separate financial statements. A subsidiary is an investee that is controlled by the
Group.
Under the cost method, a long-term equity investment is measured at initial investment cost.
Except for cash dividends or profits already declared but not yet paid that are included in the price
or consideration actually paid upon acquisition of the long-term equity investment, investment
income is recognized in the period in accordance with the attributable share of cash dividends or
profit distributions declared by the investee.
12.3.2. Long-term equity investment accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An
associate is an entity over which the Group has significant influence and a joint venture is an
entity over which the Group exercises joint control along with other investors.
Under the equity method, where the initial investment cost of a long-term equity investment
exceeds the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition, no adjustment is made to the initial investment cost. Where the initial investment cost
is less than the Group's share of the fair value of the investee's identifiable net assets at the time of
acquisition, the difference is recognized in profit or loss for the period, and the cost of the
long-term equity investment is adjusted accordingly.
Under the equity method, the Group recognizes its share of the net profit or loss of the investee
for the period as investment income or loss for the period. The Group recognizes its share of the
investee's net profit or loss based on the fair value of the investee's individually identifiable assets,
etc. at the acquisition date after making appropriate adjustments to conform with the Group's
accounting policies and accounting period. Unrealized profits or losses resulting from the Group's
transactions with its associates and joint ventures are recognized as investment income or loss to
the extent that those attributable to the Group's equity interest are eliminated.
- 28 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
12. Long-term equity investments - continued
12.3 Subsequent measurement and recognition of profit or loss - continued
12.3.2. Long-term equity investment accounted for using the equity method- continued
However, unrealized losses resulting from the Group's transactions with its associates and joint
ventures which represent impairment losses on the transferred assets are not eliminated. Changes
in owners' equity of the investee other than net profit or loss are correspondingly adjusted to the
carrying amount of the long-term equity investment, and recognized as other comprehensive
income which is included in the capital reserve.
The Group discontinues recognizing its share of net losses of the investee after the carrying
amount of the long-term equity investment together with any long-term interests that in substance
form part of its net investment in the investee is reduced to zero. If the Group has incurred
obligations to assume additional losses of the investee, a provision is recognized according to the
expected obligation, and recorded as investment loss for the period. Where net profits are
subsequently made by the investee, the Group resumes recognizing its share of those profits only
after its share of the profits exceeds the share of losses previously not recognized.
12.4 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
a long-term equity investment accounted for using the equity method, the amount included in the
shareholders' equity attributable to the percentage interest disposed is transferred to profit or loss
for the period.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.
- 29 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
13. Investment properties
Investment property is property held to earn rentals or for capital appreciation or both. It includes
a land use right that is leased out; a land use right held for transfer upon capital appreciation; and
a building that is leased out.
An investment property is measured initially at cost. Subsequent expenditures incurred for such
investment property are included in the cost of the investment property if it is probable that
economic benefits associated with an investment property will flow to the Group and the
subsequent expenditures can be measured reliably. Other subsequent expenditures are recognized
in profit or loss in the period in which they are incurred.
The Group uses the cost model for subsequent measurement of investment property, and adopts a
depreciation or 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.
14. Fixed assets
14.1 Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or
services, for rental to others, or for administrative purposes, and have useful lives of more than
one accounting year. A fixed asset is recognized only when it is probable that economic benefits
associated with the asset will flow to the Group and the cost of the asset can be measured reliably.
Fixed assets are initially measured at cost and the effect of any expected costs of abandoning the
asset at the end of its use is considered.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and
if it is probable that economic benefits associated with the asset will flow to the Group and the
subsequent expenditures can be measured reliably. Meanwhile the carrying amount of the
replaced part is derecognized. Other subsequent expenditures are recognized in profit or loss in
the period in which they are incurred.
14.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method since the month
subsequent to the one in which it is ready for intended use. The useful life, estimated net residual
value rate and annual depreciation rate of each category of fixed assets are as follows:
- 30 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
14. Fixed assets - continued
14.2 Depreciation of each category of fixed assets- continued
Annual
Depreciation Residual value depreciation rate
Category period (years) rate (%) (%)
Buildings 5-50 5, 10 1.8-19
Port facilities 50 5 1.9
Machinery and equipment 3-20 5, 10 4.5-31.7
Transportation vehicles 3-14 5, 10 6.4-31.7
Fixed asset decorations 2-5 - 20-50
Office and other equipment 3-5 5, 10 18-31.7
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.
14.3 Other explanations
The Group reviews the useful life and estimated net residual value of a fixed asset and the
depreciation method applied at least once at each financial year-end, and accounts for any change
as a change in an accounting estimate.
If a fixed asset is upon disposal or no future economic benefits are expected to be generated from
its use or disposal, the fixed asset is 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.
15. 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 its intended use.
Once the impairment loss of construction in progress is recognized, it is not be reversed in any
subsequent period.
16. Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
asset are capitalized when expenditures for such asset and borrowing costs are incurred and
activities relating to the acquisition, construction or production of the asset that are necessary to
prepare the asset for its intended use or sale have commenced. Capitalization of borrowing costs
ceases when the qualifying asset being acquired, constructed or produced becomes ready for its
intended use or sale. If construction or production of assets qualifying capitalization is interrupted
abnormally for a continuous 3-month-or-above period, the capitalization of borrowing costs
should be ceased until the assets resume construction or production. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
- 31 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
16. Borrowing costs - continued
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be capitalized
is the actual interest expense incurred on that borrowing for the period less any bank interest earned from
depositing the borrowed funds before being used on the asset or any investment income on the
temporary investment of those funds. Where funds are borrowed under general-purpose borrowings, the
Group determines the amount of interest to be capitalized on such borrowings by applying a
capitalization rate to the weighted average of the excess of cumulative expenditures on the asset over the
amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the interest
rates applicable to the general-purpose borrowings.
During capitalization period, any exchange differences of special loans in foreign currency should
be capitalized, whereas exchange differences of general loans should be recorded in current
profits and losses.
17. Intangible assets
17.1Intangible assets
Intangible assets include land use rights, trademarks and software.
An intangible asset is measured initially at cost. When an intangible asset with a finite useful life
is available for use, its original cost less net residual value and any accumulated impairment
losses is amortized over its estimated useful life using the straight-line method. An intangible
asset with an indefinite useful life is not amortized. The amortization method, years of useful life
and net residual value are as follows:
Net residual
Category Amortization method Useful life (year) value (%)
Land use rights Straight-line method 50 -
Trademarks Straight-line method 10 -
Software Straight-line method 3-10 -
For an intangible asset with a finite useful life, the Group reviews the useful life and amortization
method at the end of the period, and makes adjustments when necessary.
- 32 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
18. Long-term assets impairment
The Group assesses at each balance sheet date whether there is any indication that the long-term
equity investment, investment property measured at cost method, fixed assets, construction in
progress and intangible assets with a finite useful life may be impaired. If there is any indication
that such assets may be impaired, recoverable amounts are estimated for such assets. Intangible
assets with indefinite useful life and intangible assets not yet available for use are tested for
impairment annually, irrespective of whether there is any indication that the assets may be
impaired.
If it is not practical to estimate the recoverable amount of an individual asset, the recoverable
amount of the asset group to which the asset belongs will be estimated. The recoverable amount
of an asset is the higher of its fair value less costs of disposal and the present value of the future
cash flows expected to be derived from the asset.
If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit
is accounted for as an impairment loss and is recognized in profit or loss for the period.
Goodwill should be tested for impairment at least at the end of each year. For the purpose of
impairment testing, goodwill is considered together with the related assets group(s), i.e., goodwill
is reasonably allocated to the related assets group(s) or each of assets group(s) expected to benefit
from the synergies of the combination. An impairment loss is recognized if the recoverable
amount of the assets group or sets of assets groups (including goodwill) is less than its carrying
amount. The impairment loss is firstly allocated to reduce the carrying amount of any goodwill
allocated to such assets group or sets of assets groups, and then to the other assets of the group
pro-rata on the basis of the carrying amount of each asset (other than goodwill) in the group.
Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent
period.
19. Employee benefits
19.1 Accounting method for short-term employee benefits
Actually occurred short-term employee benefits are recognized as liabilities, with a corresponding
charge to the profit or loss for the period or in the costs of relevant assets in the accounting period
in which employees provide services to the Group. Staff welfare expenses incurred by the
Group are recognized in profit or loss for the period or the costs of relevant assets based on the
actually occurred amounts when it actually occurred. Non-monetary staff welfare expenses are
measured at fair value.
- 33 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
19. Employee benefits - continued
19.1 Accounting method for short-term employee benefits - continued
Payment made by the Group of social security contributions for employees such as premiums or
contributions on medical insurance, work injury insurance and maternity insurance, etc. and
payments of housing funds, as well as union running costs and employee education costs provided
in accordance with relevant requirements, are calculated according to prescribed bases and
percentages in determining the amount of employee benefits and recognized as relevant liabilities,
with a corresponding charge to the profit or loss for the period or the costs of relevant assets in the
accounting period in which employees provide services.
19.2 Accounting method for post-employment benefits
Post-employment benefits are all defined contribution. The contribution payable to the defined
contribution plan is recognized as liabilities, with a corresponding charge to the profit or loss for
the period or in the costs of relevant assets in the accounting period in which employees provide
services to the Group.
19.3 Accounting method for termination benefits
When the Group provides termination benefits to employees, employee benefit liabilities are
recognized for termination benefits, with a corresponding charge to the profit or loss for the
period at the earlier of: (1) when the Group cannot unilaterally withdraw the offer of termination
benefits because of the termination plan or a curtailment proposal; and (2) when the Group
recognizes costs or expenses related to restructuring that involves the payment of termination
benefits.
20. Provisions
A provision shall be recognized when the Group has a present obligation relating to a contingency
and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a realizable estimate can be made of the amount of the obligation.
At the balance sheet date, a provision is measured at the best estimate of the expenditure required
to settle the present obligation after taking into account the risks and uncertainties surrounding a
contingency and the time value of money. Where the effect of the time value of money is material,
the best estimate shall be the present value as discounted from the expenditures expected to be
required to settle the obligation.
If all or partial expenses needed for liquidation of a provisionon is expected to be compensated by
a third party andthe compensation is sure to be received, the compensation should be recorded as
assets separately with amount not exceeding the net book value of provision.
- 34 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
21. Production safety fee
The Group calculates and includes the production safety fee in the current profit or loss and the
special reserve based on the Administrative Rules on Provision and Use of Enterprise Production
Safety Fee (Cai Qi [2012] No.16) jointly issued by the MoF and State Administration of Work
Safety on 14 February 2012.
If the production safety fee set aside is used as expense, it should be written-off against special
reserve directly. If the production safety feeset aside is used for fixed assets for safety purpose, it
should beincluded in construction in progress and recognized as fixed assets once the construction
of fixed asset for safety purpose reaches the ready-to-use status; at the same time, special reserve
should be written-off against the cost of forming fixed assets with the same amount of
accumulated depreciation being recognized. Depreciation will not be calculated on such fixed
assets for safety purpose in the future period.
22. Revenue
22.1 Revenue from rendering of services
Revenue from rendering of services is recognized when (1) the amount of revenue can be
measured reliably; (2) it is probable that the associated economic benefits will flow to the
enterprise; (3) the stage of completion of the transaction can be determined reliably; and (4) the
associated costs incurred or to be incurred can be measured reliably. Revenue from rendering of
services is recognized using the percentage of completion method at the balance sheet date. The
stage of completion of a transaction for rendering for services is determined based on services
performed to date as a percentage of total services to be performed.
When the outcome of the transaction involving the rendering of services cannot be estimated
reliably, revenue is recognized only to the extent of the costs incurred that will be recoverable,
and the costs incurred are recognized as expenses for the period. When it is not probable that the
costs incurred will be recovered, revenue is not recognized.
22.2Revenue from rendering of asset usage right
The revenue is recognized on accrual basis according to related contracts or agreements reached.
22.3Interest income
The interest income shall be calculated based on the tenure of the Group's monetary funds used by
others and the actual interest rates used.
- 35 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
23.Government grants
Government grants are transfer of monetary assets and non-monetary assets from the government
to the Group at no consideration.
A government grant is recognized only when the Group can comply with the conditions attaching
to the grant and the Group will receive the grant.If a government grant is in the form of a transfer
of a monetary asset, it is measured at the amount received or receivable.
23.1 Basis of judgment and accounting methods for assets-related government grant
The Groups' government grant includes special grants for logistics park construction. As the grant
relates to the final formation of assets, this grant is classified as assets-related government grant.
A government grant related to an asset is recognized as deferred income, and evenly amortized to
profit or loss over the useful life of the related asset.
23.2 Basis of judgment and accounting methods for income-related government grant
The Group's government grant includes governmental supporting funds and subsidies for modern
logistics industry. The grant should is classified as income-related government grant.
For a government grant related to income, if the grant is a compensation for related expenses or
losses to be incurred in subsequent periods, it is recognized as deferred income, and recognized in
profit or loss over the periods in which the related costs are recognized. If the grant is a
compensation for related expenses or losses already incurred, it is recognized immediately in
profit or loss for the period.
24. Deferred tax assets and deferred tax liabilities
The income tax expenses include current income tax and deferred income tax.
24.1Current 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.
- 36 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
24. Deferred tax assets and deferred tax liabilities- continued
24.2Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their
tax base, or between the nil carrying amount of those items that are not recognized as assets or
liabilities and their tax base that can be determined according to tax laws, deferred tax assets and
liabilities are recognized using the balance sheet liability method.
Deferred tax is generally recognized for all temporary differences. Deferred tax assets for
deductible temporary differences are recognized to the extent that it is probable that taxable
profits will be available against which the deductible temporary differences can be utilized.
However, for temporary differences associated with the initial recognition of goodwill and the
initial recognition of an asset or liability arising from a transaction (not a business combination)
that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of
transaction, no deferred tax asset or liability is recognized.
For deductible losses and tax credits that can be carried forward, deferred tax assets are
recognized to the extent that it is probable that future taxable profits will be available against
which the deductible losses and tax credits can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with
investments in subsidiaries and associates, and interests in joint ventures, except where the Group
is able to control the timing of the reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from
deductible temporary differences associated with such investments and interests are only
recognized to the extent that it is probable that there will be taxable profits against which to utilize
the benefits of the temporary differences and they are expected to reverse in the foreseeable future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates,
according to tax laws, that are expected to apply in the period in which the asset is realized or the
liability is settled.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except
when they arise from transactions or events that are directly recognized in other comprehensive
income or in shareholders' equity, in which case they are recognized in other comprehensive
income or in shareholders' equity; and when they arise from business combinations, in which case
they adjust the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it
is no longer probable that sufficient taxable profits will be available in the future to allow the
benefit of deferred tax assets to be utilized. Such reduction in amount is reversed when it becomes
probable that sufficient taxable profits will be available.
- 37 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(III) SIGNIFICANT ACCOUNTING POLICIES, AND ACCOUNTING ESTIMATES- continued
24. Deferred tax assets and deferred tax liabilities - continued
24.3 Offsetting 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.
25. Operating leases and finance 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.
25.1 Accounting treatment on operating leases
25.1.1 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.
25.1.2 The Group as lessor under operating leases
Rental income from operating leases is recognized in profit or loss on a straight-line basis over the
term of the relevant lease. Initial direct costs with more than an insignificant amount are
capitalized when incurred, and are recognized in profit or loss on the same basis as rental income
over the lease term. Other initial direct costs with an insignificant amount are charged to profit or
loss in the period in which they are incurred. Contingent rents are charged to profit or loss in the
period in which they actually arise.
26. Changes in significant accounting policies and accounting estimates
No changes in accounting policies and accounting estimatesoccur this period.
- 38 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(IV) TAXES
1. Major categories of taxes and tax rates
Category of tax Basis of tax computation Tax rate
Revenues from water and electricity supply
and maintenance service provided by general 13%, 17% (note)
taxpayers
Revenues from taxable services provided by
Value-added tax ("VAT") 3% (note)
small-scale taxpayers
Revenues from stack (storage), loading and
unloading, delivery and port management 6%, 11%(note)
services provided by general taxpayers
Taxable revenue from rendering of services,
Business tax 3% or 5%
disposal of intangible assets or properties
City maintenance and construction tax Actual payment for VAT and business taxes 5% or 7%
Education surcharge Actual payment for VAT and business taxes 3%
Enterprise income tax Taxable income 25%
Urban land use tax Actual occupation of land area RMB1.50- 10.00/square meter
70% to 90% of the original cost of the
Property tax 1.2% of properties' residual value
property or rental income
Entities using different enterprise income tax rate:
Name of entity Enterprise income tax rate
Blogis (Hong Kong) Limited ("Baowan Hong Kong") 16.5%
China Huitong (H.K.) Limited ("China Huitong") 16.5%
Note: Baowan Logistics Holdings Co., Ltd. ("Baowan Holdings"), Tianjin Qingwu Baowan
International Logistics Co., Ltd. ("Qingwu Baowan"), Shenyang Baowan International
Logistics Co., Ltd. ("Shenyang Baowan"), Baowan Logistics (Wuhan) Yangluo Co., Ltd.
("Yangluo Baowan"), Baowan Feidong Logistics Holdings Co., Ltd. ("Feidong
Baowan"),Xi'an Baowan International Logistics Co., Ltd. ("Xi'an Baowan"),Xianyang
Baowan International Logistics Co., Ltd. ("Xianyang Baowan"),Qingdao Jiaozhou
Baowan International Logistics Co., Ltd. ("Jiaozhou Baowan"), Changzhou Baowan
Logistics Co., Ltd. ("Changzhou Baowan"), Jiaxing Baowan Logistics Co., Ltd. ("Jiaxing
Baowan"), Jiangyin Baowan International Logistics Co., Ltd. ("Jiangyin Baowan "),
JiangsuBaowan International Logistics Co., Ltd. ("Jiangsu Baowan"), Shaoxing Baowan
Logistics Co., Ltd. ("Shaoxing Baowan")，Chongqing Xipeng Baowan International
Logistics Co., Ltd. ("Xipeng Baowan"), Baowan Logistics (Wuhan) Ezhou Co., Ltd.
("Ezhou Baowan"),Zhengzhou Baohai International Logistics Co., Ltd. ("Zhengzhou
Baohai "), Nantong Xitong Baowan Logistics Co., Ltd. ("Xitong Baowan ") and Jiashan
Baowan Logistics Co., Ltd. ("Jiashan Baowan "), PRC subsidiaries of the Company, are
small scale taxpayers. The Company and the rest of its PRC subsidiaries are general
taxpayers.
For the Company and subsidiaries recognized as general taxpayers, those in the business
of providing stack (storage), loading and unloading and port management service apply
to 6% VAT rate; those in the business of providing delivery service apply to 11% VAT
rate.
- 39 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(IV) TAXES - continued
2. Tax incentives
Pursuant to Urban Land Use Tax Policy on the Logistics Enterprises with Commodity
Warehousing Facilities (Cai Shui [2015] No. 98) issued by the MoF and State Administration of
Taxation ("SAT"), from 1 January 2015 to 31 December 2016, the Group as a logistics enterprise,
of which land being used for commodity warehousing facilities (including owner-occupied and
rental) should be levied on urban land use tax based on 50% of applicable tax rate of different
land grades.
Pursuant to Announcement on Implementing Preferential on Enterprise Income Tax of
Encouraged Industries in the Western Region (2015 No. 14 announcement of SAT), and approved
by Chengdu Longquan State Administration of Taxation (Long Guo Shui Fa [2015] No.30),
Chengdu Longquan International Logistics Co., Ltd. ("Longquan Baowan"), subsidiary of the
Company which locates in Chengdu, Sichuang Province,is allowed to enjoyenterprise income tax
preferential policies tailored to enterprises which fits criteria of China West DevelopmentProgram.
From 2014 to 2020, Longquan Baowan enjoys enterprise income tax preferential rate of 15%.
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS
1.Cash and bank balances
Unit: RMB
Closing balance Opening balance
Cash:
RMB 7,360.75 8,081.23
Singapore Dollar 5,933.93 -
Hong Kong Dollar 2,819.04 1,546.82
Euro 2,698.00 2,834.80
United States Dollar 1,135.75 612.00
Sub-total 19,947.47 13,074.85
Bank balances:
RMB 317,429,556.55 358,297,010.73
Hong Kong Dollar 3,242,298.15 16,447,116.81
United States Dollar 430,124.56 571,658.79
Sub-total 321,101,979.26 375,315,786.33
Total 321,121,926.73 375,328,861.18
Including: Money deposited overseas(note ) 3,272,564.62 96,827,266.05
Note:Bank balances deposited overseas are deposits of subsidiary China Huitong and Baowan
Hong Kong. The remittance of funds is not restricted.
- 40 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
2．Notes receivables
(1) Categories of notes receivable
Unit:RMB
Category Closing balance Opening balance
Bankacceptances - 10,000,000.00
(2) There is no pledged, no endorsedor discounted notes receiables which is not due as at31
December 2015, nor notes receivables being converted to accounts receivable due to drawer's
failure to accept the notes.
3. Accounts receivable
(1) Disclosure of accounts receivable by categories
Unit: RMB
Closing balance Opening balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Net book
Proportio Proportion Proportion( Proportion( Net book value
value
Category Amount n(%) Amount (%) Amount %) Amount %)
Accounts
receivable that are
individually
- - - - - - - - - -
significant and
provided for bad
debt individually
Accounts receivable for which bad debt provision has been assessed by portfolios
Portfolio 1 389,154.95 0.76 - - 389,154.95 - - - - -
Portfolio 2 50,372,383.10 98.92 503,723.83 1.00 49,868,659.27 53,772,368.36 99.70 537,723.72 1.00 53,234,644.64
Subtotal of
50,761,538.05 99.68 503,723.83 50,257,814.22 53,772,368.36 99.70 537,723.72 53,234,644.64
portfolios
Accounts
receivable that are
not individually
significant but for
164,138.40 0.32 164,138.40 100.00 - 164,138.37 0.30 164,138.37 100.00 -
which bad debt
provision has been
assessed
individually
Total 50,925,676.45 100.00 667,862.23 50,257,814.22 53,936,506.73 100.00 701,862.09 53,234,644.64
Accounts receivable that are not individually significant but for which bad debt provision has
been assessed individually:
Unit: RMB
Closing balance
Bad debt Proportion of
Name of entity Receivables provision provision (%) Basis of provision
Shenzhen Lanjing Offshore
164,138.40 164,138.40 100.00 Debtor is likely to go bankruptcy
Technology Co., Ltd.
Accounts receivable portfolios for which bad debt provision has been assessed using the
percentage of accounts receivable method:
Unit: RMB
Closing balance
Proportion of provision
Name of portfolio Carrying amount Bad debt provision (%)
Portfolio 2 50,372,383.10 503,723.83 1.00
Basis for determining the above portfolio: See Note(III)10.2.
- 41 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
3. Accounts receivable - continued
(2) Provision being recorded and reversed in the current period
Provision being recorded is RMB 152,656.81 and being written-off is RMB 186,656.67 in the
current period.
(3) Top five entities with the largest balances of accounts receivable
Unit: RMB
Proportion of the amount tototal Bad debt
Name of entity Amount accounts receivable (%) Closing balance
Customer 1 11,194,026.20 21.98 111,940.26
Customer 2 4,621,265.28 9.07 46,212.65
Customer 3 2,635,614.07 5.18 26,356.14
Customer 4 2,525,869.01 4.96 25,258.69
Customer 5 2,353,560.62 4.62 23,535.61
Total 23,330,335.18 45.81 233,303.35
4. Prepayments
(1) Aging analysis of prepayments is as follows:
Unit: RMB
Closing balance Opening balance
Proportion(
Aging Amount %) Amount Proportion(%)
Within 1 year 360,732.37 82.76 310,456.92 83.18
1 - 2 years 40,838.81 9.37 - -
More than 3 years 34,306.33 7.87 62,763.49 16.82
Total 435,877.51 100.00 373,220.41 100.00
There is no significant amount of prepayment aging over one year which is not settled in time.
5. Interests receivable
(1) Interests receivable by categories
Unit: RMB
Item Closing balance Opening balance
Financing product 1,031,342.47 3,406,186.30
Fixed deposits 107,397.26 167,125.00
Total 1,138,739.73 3,573,311.30
(2) There is no significant interest overdue for the Group.
- 42 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
6. Other receivables
(1)Disclosure of other receivables by categories
Unit: RMB
Closing balance Opening balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Net book
Proportio Proportion Proportion( Proportion( Net book value
value
Category Amount n(%) Amount (%) Amount %) Amount %)
Other receivables
that are
individually
- - - - - - - - - -
significant and
provided for bad
debt individually
Other receivables for which bad debt provision has been assessed by portfolios
Portfolio 1 51,641,225.90 87.92 - - 51,641,225.90 55,181,443.97 89.95 - - 55,181,443.97
Portfolio 2 7,095,962.25 12.08 70,956.55 1.00 7,025,005.70 6,167,390.18 10.05 61,673.92 1.00 6,105,716.26
Subtotal of
58,737,188.15 100.00 70,956.55 58,666,231.60 61,348,834.15 100.00 61,673.92 61,287,160.23
portfolios
Total 58,737,188.15 100.00 70,956.55 58,666,231.60 61,348,834.15 100.00 61,673.92 61,287,160.23
Other receivables portfolios for which bad debt provision has been assessed using the percentage
of accounts receivable method:
Unit: RMB
Closing balance
Proportion of provision
Name of portfolio Other receivables Bad debt provision (%)
Portfolio 2 7,095,962.25 70,956.55 1.00
Basis for determining the above portfolio: See Note(III)10.2.
(2) Provision being recorded and reversed in the current period
Provision being recorded is RMB 1,012,496.47, beingreversed is RMB 3,213.84, and being
written-off is RMB 1,000,000.00 in the current period.
(3) Other receivables being written-offin the current period:
Unit: RMB
Item Amount being written-off
Other receivables being written-off 1,000,000.00
Significant amount of other receivables being written-off:
Unit: RMB
Amount being Caused by related
Reason for written-off Procedureson written-off
Name of entity Nature written-off party transactions
Clear-cut evidence
Management reviewed
Customer6 Deposits 1,000,000.00 indicated that receivables No
and approved
cannot be able to retrieve
- 43 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
6. Other receivables- continued
(4) Disclosure of other receivables by nature:
Unit: RMB
Nature Closing balance Opening balance
Amount due from operating activities 38,346,342.40 35,609,339.28
Deposits 18,887,803.08 23,313,515.74
Petty cash 1,282,427.95 968,908.98
Amount due from related parties 93,521.48 31,571.48
Others 127,093.24 1,425,498.67
Total 58,737,188.15 61,348,834.15
(5) Top five entities with the largest balances of other receivables
Unit: RMB
Proportion of
the amount to Bad debt
Name of entity Nature Amount Aging the total other closing
receivables balance
(%)
Amount due from -
Customer 7 government agency 12,045,000.00 More than 3 years 20.51
Amount due from -
Customer 8 10,507,880.00 More than 3 years 17.89
government agency
Customer 9 Deposits 9,010,000.00 Within 1 year 15.34 -
Customer 10 Deposits 6,000,000.00 1 to 2 year 10.21 -
Customer 11 Deposits 3,549,852.00 Within 1 year 6.04 -
Total 41,112,732.00 69.99 -
7. Inventories
Unit: RMB
Closing balance Opening balance
Provision for Provision for
Gross carrying decline in value of Net carrying Gross carrying decline in value of Net carrying
amount inventories amount amount inventories amount
Raw materials 579,126.32 - 579,126.32 92,287.77 - 92,287.77
Maintenance accessories 335,417.12 - 335,417.12 961,758.65 - 961,758.65
Total 914,543.44 - 914,543.44 1,054,046.42 - 1,054,046.42
8. Other current assets
Unit: RMB
Item Closing balance Opening balance
Bank financing products (note) 235,000,000.00 390,000,000.00
Note: Other current assets are bank financing products purchased by the Group. The expected
annualized rates of return are between 3.05% and 4.70% and the maturities are between 78
and 161 days.
- 44 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
9. Long-term equity investments
Unit: RMB
Changes in the current period
Adjustment on Announcing
Investment income other cash Closing
Increase in Decrease in recognized by comprehensive Other equity dividends or balance on
Investee Opening balance investment investment equity method income changes profits Provision Others Closing balance provision
1. Associates
Shenzhen Chiwan Sembawang
427,311,548.07 - - 54,808,242.46 - - 14,329,928.96 - - 467,789,861.57 -
Engineering Co. Ltd.("CSE")
China Development Finance
105,202,034.31 - - 6,445,061.26 - - - - - 111,647,095.57 -
Co., Ltd. ("CDFC")
Shenzhen Chiwan Offshore
Petroleum Engineering Co., Ltd 5,448,458.79 - - (2,285,055.19) - - - - - 3,163,403.60 -
("CPEC")
Total 537,962,041.17 - - 58,968,248.53 - - 14,329,928.96 - - 582,600,360.74 -
There is no restrictions to the ability of transferring funds to the Company from the investee entities which are held by the Company as long-term
equity investment as at 31 December 2015.
- 45 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
10. Investment properties
(1) Investment properties measured at cost
Unit: RMB
Item Buildings
I. Total original carrying amount
1.Opening carrying amount 1,573,893,100.65
2.Increase in the current period 209,551,344.70
(1) Purchase 125,037.42
(2) Transfer from Construction in Progress 209,426,307.28
3.Closing carrying amount 1,783,444,445.35
II. Total accumulated provision for impairment losses of investment properties
1.Opening carrying amount 306,723,891.36
2.Increase in the current period 51,126,829.28
(1) Amount accrued or amortized 51,126,829.28
3.Closing carrying amount 357,850,720.64
III. Total accumulated provision for impairment losses of investment properties
1.Opening carrying amount -
2.Increase in the current period -
3.Decrease in the current period -
4.Closing carrying amount -
IV. Total net book value of investment properties
1. Closing net book value 1,425,593,724.71
2.Openning net book value 1,267,169,209.29
(2) Investment properties that have not obtained certificates
Unit: RMB
Item Net bookvalue Reasons for not obtained certificates
Buildings 376,517,884.57 Settlement procedures are still in progress
Buildings 132,865,903.70 Properties are built on leased land. See note (V) 13 for details
Total 509,383,788.27
- 46 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
11. Fixed assets
(1) Details of fixed assets are as follows:
Unit: RMB
Machinery and Transportation Fixed assets Office and
Item Buildings Port facilities equipment vehicles decorations other equipment Total
I. Total original carrying amount
1.Opening carrying amount 746,318,745.16 46,462,519.33 167,239,347.44 21,924,403.11 13,767,664.19 85,676,191.32 1,081,388,870.55
2.Increase in the current period 109,060,833.72 - 6,156,828.05 3,012,628.74 - 4,347,320.71 122,577,611.22
(1) Purchase 412,537.42 - 1,447,563.96 3,012,628.74 - 3,589,267.54 8,461,997.66
(2) Transfer from Construction in
108,648,296.30 - 4,709,264.09 - - 758,053.17 114,115,613.56
Progress
3.Decrease in the current period - - 1,337,227.88 2,360,606.24 - 545,623.90 4,243,458.02
(1) Disposal - - 1,337,227.88 2,360,606.24 - 545,623.90 4,243,458.02
4.Closing carrying amount 855,379,578.88 46,462,519.33 172,058,947.61 22,576,425.61 13,767,664.19 89,477,888.13 1,199,723,023.75
II.Total accumulated depreciation
1.Opening carrying amount 114,196,754.11 34,186,394.03 78,462,117.06 13,673,259.08 13,767,664.19 49,789,484.60 304,075,673.07
2.Increase in the current period 33,919,302.52 947,050.68 13,639,560.55 2,614,080.45 - 5,584,476.09 56,704,470.29
(1) Amount accrued 33,919,302.52 947,050.68 13,639,560.55 2,614,080.45 - 5,584,476.09 56,704,470.29
3.Decrease in the current period - - 1,043,141.70 2,219,658.33 - 516,375.64 3,779,175.67
(1) Disposal - - 1,043,141.70 2,219,658.33 - 516,375.64 3,779,175.67
4.Closing carrying amount 148,116,056.63 35,133,444.71 91,058,535.91 14,067,681.20 13,767,664.19 54,857,585.05 357,000,967.69
III. Total accumulated provision for
impairment losses
1.Opening carrying amount - - - - - - -
2.Increase in the current period - - - - - - -
3.Decrease in the current period - - - - - - -
4.Closing carrying amount - - - - - - -
IV. Total net book value of investment
properties
1. Closing net book value 707,263,522.25 11,329,074.62 81,000,411.70 8,508,744.41 - 34,620,303.08 842,722,056.06
2.Openning net book value 632,121,991.05 12,276,125.30 88,777,230.38 8,251,144.03 - 35,886,706.72 777,313,197.48
(2) Fixed assets that have not obtained certificates
Unit: RMB
Item Net bookvalue Reasons for not obtained certificates
Buildings 23,399,253.63 Settlement procedures are still in progress
Buildings 8,081,784.52 Properties are built on leased land. See note (V) 13 for details
Total 31,481,038.15
- 47 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
12.Construction in progress
(1)Details of construction in progress are as follows:
Unit: RMB
Closing balance Opening balance
Provision for Net carrying Provision for Net carrying
Item Carrying amount impairment losses amount Carrying amount impairment losses amount
Zhenjiang Warehouse Logistics Co.,
Ltd ("Zhengjiang Warehouse ") 172,404,355.90 - 172,404,355.90 9,204,709.43 - 9,204,709.43
logistic park construction
Wuxi Baowan Warehouse Logistics
Co., Ltd ("Nantong Baowan ") logistic 129,840,610.77 - 129,840,610.77 2,451,818.66 - 2,451,818.66
park construction
Tianjin Bingang Baowan Logistics
Co., Ltd. ("Bingang Baowan ") logistic 31,398,962.29 - 31,398,962.29 27,431,368.64 - 27,431,368.64
park construction
Jiaozhou Baowan logistic park
15,489,739.01 - 15,489,739.01 - - -
construction
Nantong Baowan Logistics Co., Ltd.
("Nantong Baowan ") logistic park 3,758,604.17 - 3,758,604.17 400,164.78 - 400,164.78
construction
Shenyang Baowan logistic park
646,090.10 - 646,090.10 646,090.10 - 646,090.10
construction
Wuhan Baowan Logistics Co., Ltd.
("Wuhan Baowan ") logistic park 562,862.94 - 562,862.94 234,242,522.39 - 234,242,522.39
construction
Chengdu Chiwan International
Oil-Gas Base Co., Ltd.("Chengdu 266,908.50 - 266,908.50 - - -
Oil-Gas Base") construction
Xi'an Baowan logistic park
190,000.00 - 190,000.00 190,000.00 - 190,000.00
construction
Qingwu Baowan logistic park
120,000.00 - 120,000.00 - - -
construction
Yangluo Baowan logistic park
109,011.20 - 109,011.20 - - -
construction
Jiaxing Baowan logistic park
99,562.42 - 99,562.42 - - -
construction
Jiangyin Baowan logistic park
70,843.00 - 70,843.00 - - -
construction
Xianyang Baowan logistic park
49,000.00 - 49,000.00 49,000.00 - 49,000.00
construction
Feidong Baowan logistic park
7,000.00 - 7,000.00 - - -
construction
Other miscellaneous constructions 13,951,927.20 - 13,951,927.20 25,840,953.34 - 25,840,953.34
Total 368,965,477.50 - 368,965,477.50 300,456,627.34 - 300,456,627.34
- 48 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
12.Construction in progress - continued
(2) Changes in constructioninprogress
Unit: RMB
Amount injected Interest
Transferred to as a proportion Amount of Including: capitalization
Increase in the Transferred to investment of budget Construction accumulated capitalized interest rate for the
Item name Budget amount Opening balance current period fixed assets properties Closing balance amount (%) progress(%) capitalized interest for the period period (%) Source of funds
Zhenjiang Warehouse logistic park
362,220,000.00 9,204,709.43 163,199,646.47 - - 172,404,355.90 47.60 47.60 - - - Self-financing
construction
Wuxi Baowan logistic park
361,530,000.00 2,451,818.66 127,388,792.11 - - 129,840,610.77 35.91 35.91 - - - Self-financing
construction
Bingang Baowan logistic park
343,600,000.00 27,431,368.64 3,967,593.65 - - 31,398,962.29 9.14 9.14 614,211.15 614,211.15 6.16 Self-financing and borrowings
construction
Jiaozhou Baowan logistic park
274,000,000.00 - 15,489,739.01 - - 15,489,739.01 5.65 5.65 - - - Self-financing
construction
Nantong Baowan logistic park
341,040,000.00 400,164.78 21,980,478.34 5,526,831.91 13,095,207.04 3,758,604.17 31.15 100.00 - - - Self-financing
construction
Shenyang Baowan logistic park
433,240,000.00 646,090.10 - - - 646,090.10 0.15 0.15 - - - Self-financing
construction
Wuhan Baowan logistic park
463,710,000.00 234,242,522.39 48,084,573.56 105,890,351.47 175,873,881.54 562,862.94 60.88 100.00 8,841,302.97 4,184,863.04 6.56 Self-financing and borrowings
construction
Chengdu Oil-Gas Base construction 820,000,000.00 - 266,908.50 - - 266,908.50 0.03 0.03 - - - Self-financing
Xi'an Baowan logistic park
448,120,000.00 190,000.00 - - - 190,000.00 0.04 0.04 - - - Self-financing
construction
Qingwu Baowan logistic park
279,060,000.00 - 120,000.00 - - 120,000.00 0.04 0.04 - - - Self-financing
construction
Yangluo Baowan logistic park
163,980,000.00 - 109,011.20 - - 109,011.20 0.07 0.07 - - - Self-financing
construction
Jiaxing Baowan logistic park
193,690,000.00 - 99,562.42 - - 99,562.42 0.05 0.05 - - - Self-financing
construction
Jiangyin Baowan logistic park
267,280,000.00 - 70,843.00 - - 70,843.00 0.03 0.03 - - - Self-financing
construction
Xianyang Baowan logistic park
549,780,000.00 49,000.00 - - - 49,000.00 0.01 0.01 - - - Self-financing
construction
Feidong Baowan logistic park
228,530,000.00 - 7,000.00 - - 7,000.00 - - - - - Self-financing
construction
Other miscellaneous constructions Not applicable 25,840,953.34 11,266,622.74 2,698,430.18 20,457,218.70 13,951,927.20 Not applicable Not applicable - - - Self-financing
Total 300,456,627.34 392,050,771.00 114,115,613.56 209,426,307.28 368,965,477.50 9,455,514.12 4,799,074.19
- 49 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
13. Intangible assets
(1) Details of intangible assets
Unit: RMB
Item Land use rights Trademarks Software Total
I. Total original carrying amount
1.Opening carrying amount 1,729,557,563.73 230,500.00 1,711,223.72 1,731,499,287.45
2.Increase in the current period 149,865,883.70 82,332.83 481,362.22 150,429,578.75
(1) Purchase 149,865,883.70 82,332.83 481,362.22 150,429,578.75
3.Decrease in the current period - - - -
(1) Disposal - - - -
4.Closing carrying amount 1,879,423,447.43 312,832.83 2,192,585.94 1,881,928,866.20
II. Total accumulated amortization
1.Opening carrying amount 388,742,231.32 186,491.34 1,383,385.04 390,312,107.70
2.Increase in the current period 41,460,593.29 29,224.95 84,113.58 41,573,931.82
(1) Amortization accrued 41,460,593.29 29,224.95 84,113.58 41,573,931.82
3.Decrease in the current period - - - -
4.Closing carrying amount 430,202,824.61 215,716.29 1,467,498.62 431,886,039.52
III．Total Provision for impairment losses
1.Opening carrying amount - - - -
2.Increase in the current period - - - -
3.Decrease in the current period - - - -
4.Closing carrying amount - - - -
III. Total net book value
1. Closing net book value 1,449,220,622.82 97,116.54 725,087.32 1,450,042,826.68
2.Openning net book value 1,340,815,332.41 44,008.66 327,838.68 1,341,187,179.75
(2) Intangible assets that have not obtained certificates
Unit: RMB
Reasons for not obtained
Item Net bookvalue certificates
Land use rights 282,689,409.50 Note 1
Land use rights 9,509,068.56 Note 2
Total 292,198,478.06
Note 1: Land use right and dock use right are assets leased from Nanshan Group, the controlling
shareholder of the Company. In 1984, Nanshan Group contributed the land use right and
dock use right for 25 years as the investment capital to the Company. The term of the use
rights expired on 15 July 2009. On 18 July 2006, the Company and Nanshan Group
entered intoAgreement on Land Use, which specifies that the Company can continue to
lease the land and dock by means of operating lease after the expiration. The lease term is
25 years that starts from 15 July 2009 and ends on14 July 2034. The Company has paid
off all the rentals in a lump sum. As at31 December 2015, Nanshan Group has not
obtained the use right certificate of the above mentioned land and dock.
- 50 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
13. Intangible assets- continued
(2) Intangible assets that have not obtained certificates - continued
Note 2: Use right of the eastern landis an asset leased from Nanshan Group, the controlling
shareholder of the Company, by means of operating lease in 1997. The lease term is 25
years from 1 August 1997 to 31 July 2022. The Company has paid off all the rentals in a
lump sum. Given that Nanshan Group has not obtained the use right certificateof the
mentioned land, in addition to the guarantee of the Company's legal use right on the land,
Nanshan Group entered into anAgreementon Immunity from Liabilities Caused by the
Land Usewith the Company on 18 July 1997, agreeing to compensate the Company for
any losses, expenditures and liabilities associated with the leased land. As at31 December
2015, Nanshan Group has not obtained use right certificate of the above mentioned land
and dock.
14. Deferred tax assets
(1)Deferred tax assets that are not offset
Unit: RMB
Deductible Deductible
temporary temporary Deferred tax assets
differences at the Deferred tax assets differences at the at the beginning of
end of the at the end of the beginning of the the reporting
Item reporting period reporting period reporting period period
Provision for impairment
644,599.76 152,002.98 712,367.20 178,091.80
losses of assets
Intangible assets
30,009.32 7,502.33 28,209.60 7,052.40
amortization
Deductible losses 114,871,400.43 28,717,850.10 67,730,431.04 16,932,607.76
Total 115,546,009.51 28,877,355.41 68,471,007.84 17,117,751.96
According to the profit forecast, the Group believesit is probable that sufficient taxable profits will
be available in future periods to offset the deductible temporary differences and deductible losses.
Therefore, the related deferred tax assets are recognized.
(2)Details of unrecognized deferred tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible losses 41,579,367.77 13,463,777.12
Deductible temporary differences 94,219.02 51,168.81
Total 41,673,586.79 13,514,945.92
Deductible temporary differences and deductible losses for which deferred tax assets are not
recognised due to uncertainty whether sufficient taxable profits will be available in the future
shall be presented.
- 51 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
14. Deferred tax assets - continued
(3) Deductible losses, for which no deferred tax assets are recognised, will expire in the following
years
Unit: RMB
Year Closing balance Opening balance Remarks
Deductible losses with Due to accumulated losses from Baowan
41,579,367.77 13,463,777.12
unlimited expire term Hong Kong and China Huitong
15. Other non-current assets
Unit: RMB
Item Closing balance Opening balance
Prepayments for land use rights (note 1) 251,808,516.48 250,913,490.35
Payments for assets (note 2) 23,000,000.00 -
Prepayments for construction - 515,187.00
Others 2,811,188.36 2,143,943.29
Total 277,619,704.84 253,572,620.64
Note 1: Closing balance represents prepayments for land use rights of the Company's
subsidiaries, namely Chengdu Oil-Gas Base, Xipeng Baowan, Jiangyin Baowan,
Feidong Baowan, Xian Baowan, Yangluo Baowan and Xianyang Baowan.
Note 2: Closing balance represents prepayments by Jiashan Baowan, subsidiary of the
Company, to acquire land use rights and buildings. See note (XII) 3 for details
16.Short-term borrowings
Unit: RMB
Item Closing balance Opening balance
Unsecured and non-guaranteed loans 300,000,000.00 -
The annual interest rates on the above borrowings are fixed rates, ranging from4.1325% to
4.6075%.
17. Accounts payable
(1) Details of accounts payable are as follows:
Unit: RMB
Item Closing balance Opening balance
Rents payable 9,251,160.55 5,353,209.50
Repair charges 442,426.82 2,851,624.77
Service charges 248,775.96 152,584.64
Others 3,560,382.19 2,000,590.33
Total 13,502,745.52 10,358,009.24
(2) There is no significant accounts payable aging more than a year in the closing balance.
- 52 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
18.Receipts in advance
(1)Details of receipts in advance are as follows:
Unit: RMB
Item Closing balance Opening balance
Storage service fees collected in advance 4,129,236.00 5,065,408.13
Others 164,873.24 2,493.08
Total 4,294,109.24 5,067,901.21
(2) There are no significant receipts in advance aging more than a year in the closing balance.
19. Employee benefits payable
(1) Details of employee benefits payable are as follows
Unit: RMB
Increase in the Decrease in the
Item Opening balance current period current period Closing balance
I. Short-term compensation 31,409,639.15 74,402,661.06 79,595,655.43 26,216,644.78
II. Post-employment benefits-defined
14,851.83 9,185,534.85 9,183,773.44 16,613.24
contribution plans
III.Termination benefits - - - -
IV. Other welfare due within one year - - - -
Total 31,424,490.98 83,588,195.91 88,779,428.87 26,233,258.02
(2) Short-term Compensation
Unit: RMB
Increase in the Decrease in the
Item Opening balance current period current period Closing balance
I. Wages or salaries, bonuses, allowances and
29,889,976.86 60,576,051.87 66,154,064.29 24,311,964.44
subsidies
II. Staff welfare 1,124.00 5,142,995.05 5,120,053.05 24,066.00
III. Social security contributions 7,638.12 3,387,530.22 3,387,225.42 7,942.92
Including: Medical insurance 5,657.84 2,472,222.29 2,471,665.79 6,214.34
Work-related injury insurance 1,273.05 230,944.74 230,844.05 1,373.74
Birth insurance 707.23 312,921.93 313,236.90 392.26
Others - 371,441.26 371,478.68 (37.42)
IV. Housing funds - 3,289,664.74 3,289,577.74 87.00
V. Expenditure for trade union and employee
1,510,900.17 1,932,557.68 1,570,873.43 1,872,584.42
training
VI. Others - 73,861.50 73,861.50 -
Total 31,409,639.15 74,402,661.06 79,595,655.43 26,216,644.78
(3) Post-employment benefits- defined contribution plans
Unit: RMB
Increase in the Decrease in the
Item Opening balance current period current period Closing balance
I. Basic endowment insurance 14,144.60 6,410,998.02 6,409,687.62 15,455.00
II. Unemployment insurance 707.23 289,509.21 289,058.20 1,158.24
III.Enterprise annuity payment - 2,485,027.62 2,485,027.62 -
Total 14,851.83 9,185,534.85 9,183,773.44 16,613.24
- 53 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
19. Employee benefits payable - continued
Note: The Group participates in the social security contributions and the unemployment insurance
plan established by government institutions as required. According to such plans, the
Company and its subsidiaries contributes amounts according to local supervision agency's
requirement respectively to such plans. The Group does not undertake further payment
obligations other than the above monthly contributions. Corresponding expenses are
charged to profit or loss for the period or costs of the related assets when incurred.
During the year, the Group shall contribute RMB 6,410,998.02 and RMB 289,509.21
respectively to the social security contributions and the unemployment insurance plan
(2014: RMB 5,743,667.23 and RMB 286,927.50). As at 31 December 2015, the Group still
have outstanding contributions of RMB 15,455.00 and RMB 1,158.24(31 December 2014:
RMB 14,144.60 and RMB 707.23) to be paid to the social security contributions and the
unemployment insurance plan. The related outstanding contributions have been made after
the reporting period.
20. Taxes payable
Unit: RMB
Item Closing balance Opening balance
Enterprise income tax 9,806,765.58 31,951,111.72
Property Tax 4,309,172.88 2,646,773.08
Urban land use tax 3,190,660.26 2,976,407.34
Value added tax 2,589,977.27 1,855,329.54
Individual income tax 196,762.89 196,143.01
City construction and maintenance tax 182,018.30 156,246.63
Business tax 140,936.22 140,262.31
Educational surcharges 137,261.93 126,483.49
Others 383,721.62 390,421.54
Total 20,937,276.95 40,439,178.66
21. Interest payable
Unit: RMB
Item Closing balance Opening balance
Medium term note interest 19,594,520.52 19,594,520.52
Nanshan Group borrowings interest 6,758,208.33 15,099,874.99
Corporate bond interest 1,189,716.67 1,189,716.67
Bank interest 839,075.67 520,699.26
CDFC borrowings interest 22,958.33 -
Total 28,404,479.52 36,404,811.44
- 54 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
22. Other payables
(1)Details of other payables are as follows:
Unit: RMB
Item Closing balance Opening balance
Construction costs 370,546,685.54 341,203,333.15
Deposits 60,198,658.09 49,408,555.90
Others 49,320,875.86 48,423,028.33
Total 480,066,219.49 439,034,917.38
(2)Significantother payables aged more than a year
Unit: RMB
Item Closing balance Reason for not repay or carry over
Supplier 1 19,234,873.75 Construction balance not reaching payment terms
Supplier 2 11,226,656.23 Construction balance not reaching payment terms
Supplier 3 10,133,058.12 Construction balance not reaching payment terms
Supplier 4 9,196,084.07 Construction balance not reaching payment terms
Shenzhen Chixiao Project Engineering
6,286,323.81 Construction balance not reaching payment terms
Co., Ltd. ("Chixiao Project Company")
Shenzhen Chixiao Construction
Technology Co., Ltd. ("Chixiao 2,156,683.47 Construction balance not reaching payment terms
Construction Company")
Supplier 5 4,197,354.91 Construction balance not reaching payment terms
Supplier 6 4,185,657.88 Construction balance not reaching payment terms
Supplier 7 3,736,375.17 Construction balance not reaching payment terms
Supplier 8 3,610,334.07 Construction balance not reaching payment terms
Supplier 9 3,115,639.14 Construction balance not reaching payment terms
Customer 12 3,000,000.00 Storage deposit not reaching payment terms
Customer 1 2,838,204.00 Storage deposit not reaching payment terms
Customer 13 2,757,869.00 Storage deposit not reaching payment terms
Customer 14 2,450,921.40 Storage deposit not reaching payment terms
Supplier 10 2,247,969.19 Construction balance not reaching payment terms
Supplier 11 1,996,477.14 Construction balance not reaching payment terms
Supplier 12 1,888,014.28 Construction balance not reaching payment terms
Supplier 13 1,553,168.56 Construction balance not reaching payment terms
Customer 15 1,335,491.60 Storage deposit not reaching payment terms
Customer 16 1,283,010.00 Storage deposit not reaching payment terms
Total 98,430,165.79
- 55 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
23. Non-current liabilities due within one year
(1) Details of non-current liabilities due within one year are as follows:
Unit: RMB
Item Closing balance Opening balance
Other non-current liabilities due within one year (note) 701,349,351.16 1,349,351.16
Long-term borrowings due within one year 6,047,377.24 -
Total 707,396,728.40 1,349,351.16
Note: See note (V) 29 for details.
(2) Long-term borrowings due within one year
Unit: RMB
Item Closing balance Opening balance
Unsecured and non-guaranteed loans 6,047,377.24 -
24.Other current liabilities
Unit: RMB
Item Closing balance Opening balance
Loans borrowed from Nanshan Development (H.K.) Co., 6,000,000.00 -
Ltd("Nanshan Hong Kong")
Loans borrowed from Nanshan Group - 300,000,000.00
Total 6,000,000.00 300,000,000.00
Closing balance is short-term loan borrowed from Nanshan Hong Kong. The borrowing period
dates from 28 December 2015 to 28 December 2016, and the annual borrowing rate is 4.35%.
Opening balance was short-term loan borrowed from Nanshan Group, which was fullyrepaid in
the current year.
25. Long-term borrowings
Categories of long-term borrowings
Unit: RMB
Item Closing balance Opening balance
Guaranteed loans (note) 447,502,609.77 345,491,134.28
Unsecured and non-guaranteed loans 48,379,017.92 45,325,551.36
Sub-total 495,881,627.69 390,816,685.64
Less: long-term borrowings within one year 6,047,377.24 -
Total 489,834,250.45 390,816,685.64
The annual interest rates on the above borrowings range from4.5125% to 4.9000%(31 December
2014: 6.0800% to 6.8775 %).
Note:See note (X) 5(3) for details.
- 56 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
26. Bonds payable
(1) Details of bonds payable
Unit: RMB
Item Closing balance Opening balance
Medium term note 400,000,000.00 400,000,000.00
Corporate bond 567,159,500.00 565,677,500.00
Total 967,159,500.00 965,677,500.00
(2) Changes in the current period of bonds payable
Unit: RMB
Issue in the Premium or
Maturity Accrued interest Repay for the
Item Par value Issue date Issued amount Opening balance current discount Closing balance
term for the period period
period amortization
Medium term
400,000,000.00 07/03/2012 5 years 400,000,000.00 400,000,000.00 - 24,000,000.00 - - 400,000,000.00
note (note 1)
Corporate bond
570,000,000.00 17/12/2012 7 years 570,000,000.00 565,677,500.00 - 32,946,000.00 1,482,000.00 - 567,159,500.00
(note 2)
Total 970,000,000.00 970,000,000.00 965,677,500.00 - 56,946,000.00 1,482,000.00 - 967,159,500.00
Note 1: The Company issued the five-year medium term note, which starts from 9 March 2012
and ends on 9 March 2017, at the par value of RMB400, 000,000.00 with fixed annual
interest rate of 6% on 7 March 2012. The interests are paid yearly, and the principal will
be repaid in a lump sum upon maturity. Nanshan Group has provided a full-amount
irrevocable guarantee with joint-liability for the medium term note.
Note 2: Pursuant to Approval for Publicly Issuing Corporate Bond of Shenzhen Chiwan
Petroleum Supply Base Co., Ltd. (Zheng Jian Xu Ke [2012] No. 1142) issued by China
Securities Regulatory Commission, the Company issued the seven-year corporate bond
at the par value of RMB570,000,000.00 on 17 December 2012. In the first five
interest-bearing years, the annual interest rate is fixed at 5.78%. The interests will be
paid yearly, and the principal will be repaid in a lump sum upon maturity. As specified
in the prospectus of the corporate bond, the Company has the right to decide whether to
raise the interest rate of the corporate bond for the remaining two years by 1 to 100
basis points at the end of the fifth year. After the Company publicly announces the
decision on changing interest rate, the bond holders are entitled to sell all or partial of
the bonds held by them to the Company at par value. Nanshan Group has provided a
full-amount irrevocable guarantee with joint-liability for the corporate bond.
27. Long-term payable
Unit: RMB
Entity Closing balance Opening balance
Nanshan Group 251,417,853.31 251,417,853.31
Long-term payable is the fund borrowed by the Group from the Company's parent company
Nanshan Group. Pursuant to the agreement of long-term borrowings with Nanshan Group, the
borrowings should be used for the construction and subsequent operation of the logistics parks of
the Company's subsidiaries. The interests will be charged on the actual amounts borrowed at the
interest rate based on market rates of the same period.
- 57 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
28．Deferred income
Unit: RMB
Opening Increase in the Decrease in the Closing
Item balance current period current period balance Cause of formation
Received special subsidy
Government subsidy 1,500,000.00 50,400,000.00 648,848.93 51,251,151.07 only for purchasing or
constructing fixed assets
Items concerning government subsidy:
Unit: RMB
Amount
Increase of recognized in
government non-operating Related to
Opening subsidy in the income in the assets or
Liabilities items balance current period current period Closing balance revenue
Wuhan Baowan
Related to
logistic park - 50,400,000.00 573,848.93 49,826,151.07
assets
construction
Guangzhou Baowan
Logistics Co., Ltd.
Related to
("Guangzhou 1,500,000.00 - 75,000.00 1,425,000.00
assets
Baowan") lot A
construction
Total 1,500,000.00 50,400,000.00 648,848.93 51,251,151.07
Note: Opening balance represents special fund for developing modern logistics industry received
by Guangzhou Baowan pursuant to Notice on Developing Strategic Leading Industriesof
Guangzhou in 2014;increased in the current period represents special subsidyreceived by
Wuhan Baowan, subsidiary of the Company, pursuant to the Official Confirmation Letter
issued by Ministry of Transport of Wuhan (JiaoGuiHuaHan [2014] 1080), which is intended
for construction of warehoulse and facilities.
29. Other non-current liabilities
Unit: RMB
Item Closing balance Opening balance
Medium and long-term borrowings(note) 910,000,000.00 910,000,000.00
Rental received in advance 17,716,909.50 19,066,206.66
Total 927,716,909.50 929,066,260.66
Less: Non-current liabilities due within one year 701,349,351.16 1,349,351.16
Non-current liabilities due after one year 226,367,558.34 927,716,909.50
Note: medium and long-term borrowings consist of RMB 700,000,000.00 borrowed from
Nanshan Group which dates from 11 November 2011 to 11 November 2016, with annual
rates of 6.8105%; and RMB 110,000,000.00 and RMB 100,000,000.00 borrowed from
Nanshan Hong Kong by China Huitong, which dates from 12 December 2014 to 12
December 2017 and 18 December 2014 to 18 December 2017 repectively, and both with
floating rate adjusted quaterlyaccording to Bank of China benchmark loan rate .
- 58 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
30. Share capital
Unit: RMB
Changes for the period
Capitalization
New issue of surplus
Item Opening balance of shares Bonus issue reserve Others Sub-total Closing balance
2015:
I. Restricted tradable
shares
1. State-owned shares - - - - - - -
2. State-owned legal - - - -
119,420,000.00 - 119,420,000.00
person shares
3. Other domestic-owned - - - - -
- -
shares
4. Other foreign-owned - - - - -
- -
shares
Total restricted tradable - - - -
119,420,000.00 - 119,420,000.00
shares
II. Tradable shares
1. Ordinary shares - - - -
- - -
denominated in RMB
2. Foreign-owned shares - - - -
111,180,000.00 - 111,180,000.00
listed domestically
3. Foreign-owned shares - - - - -
- -
listed overseas
4. Others - - - - - - -
Total tradable shares 111,180,000.00 - - - - - 111,180,000.00
III. Total shares 230,600,000.00 - - - - - 230,600,000.00
2014:
I. Restricted tradable
shares
1. State-owned shares - - - - - - -
2. State-owned legal
119,420,000.00 - - - - - 119,420,000.00
person shares
3. Other domestic-owned
- - - - - - -
shares
4. Other foreign-owned
- - - - - - -
shares
Total restricted tradable
119,420,000.00 - - - - - 119,420,000.00
shares
II. Tradable shares
1. Ordinary shares
- - - - - - -
denominated in RMB
2. Foreign-owned shares
111,180,000.00 - - - - - 111,180,000.00
listed domestically
3. Foreign-owned shares
- - - - - - -
listed overseas
4. Others - - - - - - -
Total tradable shares 111,180,000.00 - - - - - 111,180,000.00
III. Total shares 230,600,000.00 - - - - - 230,600,000.00
Note: The par value per share of the above shares is RMB1.00.
- 59 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
31. Capital reserve
Unit: RMB
Increase in the Decrease in the
Item Opening balance period period Closing balance
Capital premium 124,868,225.67 - - 124,868,225.67
Other capital reserve 109,272,960.42 - - 109,272,960.42
Total 234,141,186.09 - - 234,141,186.09
32．Other comprehensive income
Unit: RMB
Amount for the current period
Less：Net
amount
included in
other
comprehensive
income in the Post-tax net
prior periods amount Post-tax net
Before-tax that is belonging to amount
Opening amount for transferred to parent belonging to
balance the current profit or loss Less： company minority Closing
Item period for the period income tax owners shareholders balance
I. Net amount included in other
comprehensive income that
- - - - - - -
cannot be transferred to profit
or loss in the future
Including：Changes in net
liability and net asset arising
- - - - - - -
from recalculation of defined
benefit plan
Share of other comprehensive
income of the investee that
cannot be transferred to profit - - - - - - -
or loss accounted for using the
equity method
II. Net amount included in other
comprehensive income that can
652,079.14 - - - - - 652,079.14
be transferred to profit or loss in
the future
Including：Share of other
comprehensive income of the
investee that can be transferred - - - - - - -
to profit or loss accounted for
using the equity method
Gains (losses) arising from
available-for-sale financial - - - - - - -
assets
held-to-maturity investment that
is reclassified as financial assets - - - - - - -
available for sale
Effective gains(losses) arising
from cash flow hedging - - - - - - -
instruments
Translation differences of
financial statements
652,079.14 - - - - - 652,079.14
denominated in foreign
currencies
Total 652,079.14 - - - - - 652,079.14
- 60 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
33. Special reserve
Unit: RMB
Increase in the Decrease in the
Item Opening balance period period Closing balance
Production safety fee 4,240,147.49 2,539,292.54 837,668.55 5,941,771.48
34. Surplus reserves
Unit: RMB
Increase in the Decrease in the
Item Opening balance period period Closing balance
Statutory surplus reserve 215,868,606.04 2,716,547.22 - 218,585,153.26
Discretionary surplus reserve 91,216,024.21 7,444,111.34 - 98,660,135.55
Total 307,084,630.25 10,160,658.56 - 317,245,288.81
35. Unappropriated profits
Unit: RMB
Item Closing balance Opening balance
Before adjustment: Unappropriated profits at the end of prior year 913,767,989.40 720,937,883.66
Adjustment: Total unappropriated profits at the beginning of the year(note 1) - (3,314,195.62)
After adjustment: Unappropriated profits at the beginning of the year 913,767,989.40 717,623,688.04
Add: Net profit attributable to owners of the Company for the period 91,644,920.49 218,544,184.50
Less: Appropriation to statutory surplus reserve (note 2) 2,716,547.22 14,888,222.68
Appropriation to discretionary surplus reserve (note 3) 7,444,111.34 7,511,659.85
Declaration of dividends on ordinary shares 29,747,400.00 -
Effects of business combination involving enterprises under common control - 0.61
Unappropriated profits at the end of the year 965,504,851.33 913,767,989.40
Note 1: Business combination involving enterprises under common control resulted in changes of
combination scope in the prior year, whichreduced net profits attributable to owners of the
Companyby RMB 3,314,195.62 in the opening balance.
Note 2: According to the Articles of Association, the Company is required to transfer 10% of its
net profit of 2015 to the statutory surplus reserve.
Note 3: According to the resolution of 2014 shareholders' meeting on 30 June2015, the Company
appropriated the discretionary surplus reserve based on 5% of the Company's net profit in
2014, the total amount of which is RMB 7,444,111.34.
Note 4: As at 31 December 2015, the balance of the Group's unappropriated profits includes
appropriation to surplus reserve by subsidiaries amounting to RMB 99,378,754.84(31
December 2014: RMB 76,249,346.01).
- 61 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
36. Operating income and operating costs
Unit: RMB
Amount recognized in the current period Amount recognized in the prior period
Item Operating income Operating cost Operating income Operating cost
Principal operating activities 649,012,991.25 293,808,730.04 704,037,704.37 256,773,472.87
Other operating activities 1,266,525.09 3,193,784.84 8,920,898.89 2,888,454.36
Total 650,279,516.34 297,002,514.88 712,958,603.26 259,661,927.23
37. Business taxes and levies
Unit: RMB
Amount incurred in the Amount incurred in the
Item current period prior period
Property tax 22,306,776.50 14,873,250.87
Urban land use tax 8,191,167.12 5,239,062.56
City construction and maintenance tax 2,100,050.43 2,327,636.94
Education surcharges 1,676,708.28 1,906,193.93
Business tax 1,674,684.65 1,998,254.47
Others 234,781.58 222,482.82
Total 36,184,168.56 26,566,881.59
38. Selling expenses
Unit: RMB
Amount incurred in the Amount incurred
Item current period in the prior period
Agency brokerage 1,787,555.39 414,289.52
Others 7,075.47 9,582.91
Total 1,794,630.86 423,872.43
39. Administrative expenses
Unit: RMB
Amount incurred
Amount incurred in the in the prior period
Item current period
Payroll 51,258,086.99 51,730,187.95
Asset amortization 10,074,850.77 10,750,070.56
Taxes 7,064,503.93 6,812,525.70
Asset depreciation 4,147,388.80 4,504,401.09
Travelling expense 3,361,419.34 2,597,972.29
Business entertainment 2,836,145.47 2,830,996.47
Vehicle expense 2,288,519.31 2,087,291.53
Others 14,500,612.57 13,917,829.56
Total 95,531,527.18 95,231,275.15
- 62 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
40. Financial expenses
Unit: RMB
Amount incurred in the Amount incurred in the
Item current period prior period
Interest expenses 172,521,259.62 166,824,004.01
Less: Capitalized interest expenses 4,799,074.19 20,955,077.75
Less: Interest income 5,895,451.65 2,727,333.08
Exchange differences 401,204.04 210,592.57
Less: Capitalized exchange differences - -
Others 2,887,408.77 2,926,541.16
Total 165,115,346.59 146,278,726.91
41. Impairment losses on assets
Unit: RMB
Amount incurred in the Amount incurred in the
Item current period prior period
Bad debt losses 975,282.77 (20,260.63)
42. Investment income
Details of investment income
Unit: RMB
Amount recognized in Amount recognized in
Item the current period the prior period
Income from long-term equity investments under equity(note)
58,968,248.53 61,708,345.78
method
Income from bank financing products 16,142,257.65 32,184,075.89
Total 75,110,506.18 93,892,421.67
Note: See note (V) 9 for details.
There are no significant restrictions on remittance of investment income stated above.
43. Non-operating income
(1)Details of non-operating income are as follows:
Unit: RMB
Amount included in
Amount recognized non-recurring profit
in the current Amount recognized or loss for the
Item period in the prior period period
Government grants 12,491,552.18 9,686,859.21 12,491,552.18
Total gains on disposal of non-current assets 83,782.26 244,284.67 83,782.26
Including: Gains on disposal of fixed assets 83,782.26 244,284.67 83,782.26
Accounts payable write-off 880,397.20 - 880,397.20
Penalty gains 45,170.87 1,729,363.62 45,170.87
Others 137,207.83 207,618.02 137,207.83
Total 13,638,110.34 11,868,125.52 13,638,110.34
- 63 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
43. Non-operating income- continued
(2)Details of government grants:
Unit: RMB
Amount recognized in Amount recognized in Related to
Item the current period the prior period assets/income
Bank loan subsidies (note 1) 1,878,500.00 3,226,300.00 Related to income
Financial support fund(note 2) 9,750,547.11 4,173,290.49 Related to income
Special construction funds for
648,848.93 - Related to income
logistics park (Note 3)
Encouragement fund for service - 1,800,000.00 Related to income
industry (note 3)
Others 213,656.14 487,268.72 Related to income
Total 12,491,552.18 9,686,859.21
Note 1: Amount recognized in the current period mainly are bank loan subsidies for key logistics
enterprise granted to the Company, in accordance with Management Provisions on
Special Funds for Shenzhen Modern Logistics Development (Shen Cai Gui (2013) No.
12).
Note 2: Financial support fund mainly includes: grants to the Company in accordance with
Implementation Measures on Financial Supports During Shenzhen Business Tax to VAT
Tax Reform Pilot Period (Shen Cai Fad (2012) No. 46), and grants to Kunshan Baowan
International Logistic Co., Ltd.("Kunshan Baowan"), subsidiary of the Company, namely
pursuant toPilot Projects of Suzhou Modern Services Industry (Su Fa Gai Fu [2014]
No.33).
Note 3: See note (V) 28 for details
44. Non-operating expenses
Unit: RMB
Amount included
in non-recurring
Amount incurred in Amount incurred in profit or loss for
Item the current period the prior period the period
Compensation losses 1,063,858.34 - 1,063,858.34
Total losses on disposal of non-current assets 386,856.19 54,664.06 386,856.19
Including: Losses on disposal of fixed assets 386,856.19 54,664.06 386,856.19
Penalty losses 35,112.73 984.08 35,112.73
Others 34,686.54 (66,876.74) 34,686.54
Total 1,520,513.80 (11,228.60) 1,520,513.80
- 64 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
45. Income tax expense
Unit: RMB
Amount incurred in the Amount incurred in the
Item current period prior period
Current tax expense 41,991,156.77 52,176,005.66
Deferred tax expense (11,759,603.45) (444,966.20)
Total 30,231,553.32 51,731,039.46
Reconciliation of income tax expenses to the accounting profit is as follows:
Unit: RMB
Amount for the current Amount for the prior
period period
Accounting profit 140,904,148.22 290,587,956.37
Income tax expenses calculated at 25% (prior year: 25%) 35,226,037.06 72,646,989.09
Effect of deductible temporary differences and deductible losses from
7,039,660.21 3,378,736.48
unrecognized deferred tax assets in the current period
Effect of adjusting income tax for previous years 3,072,869.66 (10,403,019.86)
Effect of expenses that are not deductible for tax purposes 710,675.69 921,511.60
Effect of subsidiaries using different tax rates (1,282,386.20) -
Effect of non-taxable income (14,742,062.13) (15,877,086.45)
Others 206,759.03 1,063,908.60
Income tax expense 30,231,553.32 51,731,039.46
46. Other comprehensive income
See Note(V) 32 for detail.
47.Calculation process of basic earnings per share and diluted earnings per share
For the purpose of calculating basic earnings per share, net profit for the current period
attributable to ordinary shareholders is as follows:
Unit: RMB
Amount for the current Amount for the prior
period period
Net profit for the current period attributable to ordinary shareholders 91,644,920.49 218,544,184.50
Including: Net profit from continuing operations 91,644,920.49 218,544,184.50
Net profit from discontinued operations - -
For the purpose of calculating basic earnings per share, the denominator is the weighted average
number of outstanding ordinary shares, and its calculation process is as follows:
Unit: Share
Number for the current Number for the prior
period period
Number of ordinary shares outstanding at the beginning of year 230,600,000.00 230,600,000.00
Add: Weighted average number of ordinary shares issued during the period - -
Less: Weighted average number of ordinary shares repurchased during the
- -
period
Number of ordinary shares outstanding at the end of the year 230,600,000.00 230,600,000.00
- 65 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
47. Calculation process of basic earnings per share and diluted earnings per share- continued
Earnings per share
Unit: RMB
Amount for the Amount for the prior
current period period
Calculated based on net profit attributable to shareholders of the
Company:
Basic earnings per share 0.40 0.95
Diluted earnings per share Not applicable Not applicable
Calculated based on net profit from continuing operations
attributable to shareholders of the Company:
Basic earnings per share 0.40 0.95
Diluted earnings per share Not applicable Not applicable
48. Notes to items in the cash flow statement
(1)Other cash receipts relating to operating activities
Unit: RMB
Amount for the Amount for the prior
Item current period period
Receipts of storage service deposits 21,559,126.76 23,313,444.55
Government grants 11,842,703.25 11,186,859.21
Interest income 5,895,451.65 2,683,778.20
Receipts of supplies purchasing and decoration fees 1,266,525.09 8,606,126.89
Others 4,815,204.48 2,861,499.92
Total 45,379,011.23 48,651,708.77
(2) Other cash payments relating to operating activities
Unit: RMB
Amount for the Amount for the prior
Item current period period
Payments for administrative expense and selling expense 20,468,978.58 21,434,089.85
Payments for storage service deposits 7,876,656.43 5,509,196.58
Payment for supplies procurement and decoration fees 3,193,784.84 2,888,454.36
Payment for accrued expenses 2,964,294.17 4,011,777.54
Payment for bank commissions 1,732,156.04 1,444,541.16
Others 2,520,177.66 1,829,840.59
Total 38,756,047.72 37,117,900.08
- 66 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(V) NOTES TO ITEMS IN THE CONSOLIDATED FINANCIAL STATEMENTS- continued
48. Notes to items in the cash flow statement- continued
(3) Other cash receipts relating to investing activities
Unit: RMB
Amount for the current Amount for the prior
Item period period
Receipts of matured financing products 1,471,000,000.00 3,240,210,000.00
Receipts of government subsidy related to assets 50,400,000.00 -
Investment income from bank financing products 18,517,101.51 30,305,834.60
Total 1,539,917,101.51 3,270,515,834.60
(4) Other cash payments relating to investing activities
Unit: RMB
Amount for the current Amount for the prior
Item period period
Purchase of financing products 1,316,000,000.00 2,956,991,901.00
Deposits for land rights 9,010,000.00 15,613,834.00
Others - 1,411,987.00
Total 1,325,010,000.00 2,974,017,722.00
(5) Other cash receipts relating to financing activities
Unit: RMB
Amount for the current Amount for the prior
Item period period
Receipts of loans from Nanshan Development (Hong Kong)
6,000,000.00 216,320,000.00
Limited ("Nanshan Hong Kong"),
Receipts of loans from Nanshan Group - 350,406,161.82
Total 6,000,000.00 566,726,161.82
(6) Other cash payments relating to financing activities
Unit: RMB
Amount for the current Amount for the prior
Item period period
Payments for loan principal to Nanshan Group 300,000,000.00 11,000,000.00
Payments for loan interests to Nanshan Group 64,067,500.00 62,906,843.01
Payments for commission of medium term note 1,201,200.00 1,201,200.00
Payments for loan principal and interests to Nanshan Hong Kong - 239,943,237.44
Payments for commission of corporate bond - 2,280,000.00
Others 1,647.30 1,613.66
Total 365,270,347.30 317,332,894.11
- 67 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(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 information Current period Prior period
1. Reconciliation of net profit to cash flows from operating activities:
Net profit 110,672,594.90 238,856,916.91
Add: Provision for impairment losses of assets 975,282.77 (20,260.63)
Depreciation of fixed assets 56,704,470.29 41,011,598.44
Depreciation of investment properties 51,126,829.28 36,989,620.27
Amortization of intangible assets 41,573,931.82 38,679,662.17
Gains on disposal of fixed assets, intangible assets and other
303,073.93 (189,620.61)
long-term assets
Financial expenses 167,722,185.43 146,291,496.74
Losses (gains) arising from investments (75,110,506.18) (93,892,421.67)
Decrease (increase) in deferred tax assets (11,759,603.45) (444,966.20)
Decrease (increase) in inventories 139,502.98 (57,689.87)
Decrease (increase) in receivables from operating activities (27,795,284.40) (13,280,134.93)
Increase (decrease) in payables from operating activities 18,103,874.07 20,426,559.43
Net cash flows from operating activities 332,656,351.44 414,370,760.05
2. Net changes in cash and cash equivalents:
Closing balance of cash 321,121,926.73 375,328,861.18
Less: Opening balance of cash 375,328,861.18 299,905,369.63
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase (decrease) in cash and cash equivalents (54,206,934.45) 75,423,491.55
(2) Composition of cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 321,121,926.73 375,328,861.18
Including: Cash on hand 19,947.47 13,074.85
Bank deposits 321,101,979.26 375,315,786.33
II. Cash equivalents - -
Including: Investments in debt securities due within three months - -
III. Closing balance of cash and cash equivalents 321,121,926.73 375,328,861.18
50、Foreign currency monetary items
Unit:RMB
Closing balance in Closing balance
Item foreign currency Exchange rate translate in RMB
Cash and bank balance 3,685,009.43
Including: Hong Kong Dollar 3,863,184.75 0.8400 3,245,117.19
United State Dollar 66,449.97 6.4900 431,260.31
Singapore Dollar 1,293.50 4.5875 5,933.93
Euro 380.00 7.1000 2,698.00
- 68 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(VI) CHANGES OF CONSOLIDATION SCOPE
Entities are newly included in the consolidation scope.
Unit: RMB
Nameofsubsidiaries Year-end net assets
Xitong Baowan 66,996,585.00
Jiangsu Baowan 32,361,299.38
Chengdu oil gas base 31,147,324.04
XipengBaowan 13,044,886.13
ShaoxingBaowan (150.00)
JiashanBaowan (247.50)
ZhengzhouBaohai -
EzhouBaowan -
The above subsidiaries are set up in the current period. Asat 31 December 2015, they arestill
under construction and not put into operation.
- 69 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(VII) EQUITY IN OTHER ENTITIES
1. Equity in subsidiaries
(1) Group Composition
Proportion of
holding equity (%)
Name of subsidiary Business premise Registered place Business nature Direct Indirect Acquired method
Baowan Holdings Guangdong Shenzhen Guangdong Shenzhen Investment 77.36 - Set-up
Shanghai Baowan International Logistic Co., Ltd. Shanghai Shanghai Logistic service - 100.00 Set-up
Guangzhou Baowan Guangdong Guangzhou Guangdong Guangzhou Logistic service - 100.00 Set-up
Kunshan Baowan Jiangsu Kunshan Jiangsu Kunshan Logistic service - 100.00 Set-up
Tianjin Baowan International Logistic Co., Ltd. Tianjin Tianjin Logistic service - 100.00 Set-up
Langfang Baowan International Logistic Co., Ltd. Hebei Langfang Hebei Langfang Logistic service - 100.00 Set-up
Longquan Baowan Sichuang Chengdu Sichuang Chengdu Logistic service - 100.00 Set-up
Chengdu Xindu Baowan International Logistic Co., Logistic service Set-up
Sichuang Chengdu Sichuang Chengdu - 100.00
Ltd.
Nanjing Baowan Logistic Co., Ltd. ("Nanjing Logistic service Set-up
Jiangsu Nanjing Jiangsu Nanjing - 100.00
Baowan")
Bingang Baowan Tianjin Tianjin Logistic service - 100.00 Set-up
Nantong Baowan Jiangsu Nantong Jiangsu Nantong Logistic service - 100.00 Set-up
Wuhan Baowan Hubei Wuhan Hubei Wuhan Logistic service - 100.00 Set-up
Qingwu Baowan Tianjin Tianjin Logistic service - 100.00 Set-up
Shenyang Baowan. Liaoning Shenyang Liaoning Shenyang Logistic service - 100.00 Set-up
Yangluo Baowan Hubei Wuhan Hubei Wuhan Logistic service - 100.00 Set-up
Feidong Baowan Anhui Hefei Anhui Hefei Logistic service - 100.00 Set-up
Xi'an Baowan Shanxi Xi'an Shanxi Xi'an Logistic service - 100.00 Set-up
Xianyang Baowan Shanxi Xianyang Shanxi Xianyang Logistic service - 100.00 Set-up
Hong Kong Special Hong Kong Special Set-up
Baowan Hong Kong Investment - 100.00
Administrative Region Administrative Region
Jiaozhou Baowan. Shandong Qingdao Shandong Qingdao Logistic service - 100.00 Set-up
Changzhou Baowan. Jiangsu Changzhou Jiangsu Changzhou Logistic service - 100.00 Set-up
Jiaxing Baowan Zhejiang Jiaxing Zhejiang Jiaxing Logistic service - 100.00 Set-up
Jiangyin Baowan Jiangsu Jiangyin Jiangsu Jiangyin Logistic service - 100.00 Set-up
Logistic service Business
combination
Shenzhen Baowan International Logistic Co., Ltd.
Guangdong Shenzhen Guangdong Shenzhen 100.00 - involving
("Shenzhen Baowan")
enterprises under
common control
Logistic service Business
combination
Mingjiang (Shanghai) International Logistic Co.,
Shanghai Shanghai - 100.00 involving
Ltd.
enterprises under
common control
Business
combination
Hong Kong Special Hong Kong Special
China Huitong Investment - 100.00 involving
Administrative Region Administrative Region
enterprises under
common control
Logistic service Business
combination
Wuxi Baowan Jiangsu Wuxi Jiangsu Wuxi - 100.00 involving
enterprises under
common control
Logistic service Business
combination
Zhenjiang Warehouse Jiangsu Zhenjiang Jiangsu Zhenjiang - 100.00 involving
enterprises under
common control
Chengdu Oil-Gas Base Sichuan Chengdu Sichuan Chengdu Logistic service 100.00 - Set-up
Shaoxing Baowan Zhejiang Shaoxing Zhejiang Shaoxing Logistic service - 100.00 Set-up
Jiangsu Baowan Jiangsu Nanjing Jiangsu Nanjing Logistic service - 100.00 Set-up
Xipeng Baowan Chongqing Chongqing Logistic service - 100.00 Set-up
Zhengzhou Baohai Zhengzhou Henan Zhengzhou Henan Logistic service - 80.00 Set-up
Ezhou Baowan Ezhou Hubei Ezhou Hubei Logistic service - 100.00 Set-up
Xitong Baowan Jiangsu Nantong Jiangsu Nantong Logistic service - 100.00 Set-up
Jiashan Baowan Zhejiang Jiashan Zhejiang Jiashan Logistic service - 100.00 Set-up
- 70 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(VII) EQUITY IN OTHER ENTITIES- continued
2. Equity in joint ventures or associates
(1) Significant associates
Unit: RMB
Proportion of
shareholding (%) Accounting
Name Business premise Registered place Business nature Direct Indirect method
CSE Guangdong Shenzhen Guangdong Shenzhen Oceanic oil engineering 32.00 - Equity method
CDFC Guangdong Shenzhen Guangdong Shenzhen Capital management 20.00 - Equity method
Oil chemical equipment
CPEC Guangdong Shenzhen Guangdong Shenzhen 20.00 - Equity method
manufacturing
(2) Financial information of Significant associates
Unit: RMB
Closing balance/Amount incurred in the current period Opening balance/Amount incurred in the prior year
CSE CDFC CPEC CSE CDFC CPEC
Current asset 482,873,475.04 3,307,742,630.92 29,711,372.51 419,889,841.93 1,767,704,129.70 37,742,800.42
Non-current asset 1,112,312,706.71 920,635,240.41 8,154,950.23 1,016,889,212.27 803,196,275.65 10,439,406.27
Total asset 1,595,186,181.75 4,228,377,871.33 37,866,322.74 1,436,779,054.20 2,570,900,405.35 48,182,206.69
Current liability 186,373,956.07 3,670,142,393.48 22,302,980.98 114,121,562.75 2,044,890,233.81 21,193,588.87
Non-current liability - - - - - -
Total liability 186,373,956.07 3,670,142,393.48 22,302,980.98 114,121,562.75 2,044,890,233.81 21,193,588.87
Net assets share calculated
according to proportion of 467,789,861.57 111,647,095.57 3,163,403.60 427,311,548.07 105,202,034.31 5,448,458.79
shareholding
Net book value of the
equity investment in 467,789,861.57 111,647,095.57 3,163,403.60 427,311,548.07 105,202,034.31 5,448,458.79
associates
Income 568,666,851.49 53,276,669.73 65,789,872.06 782,512,260.81 61,535,184.39 68,315,733.31
Net profit 171,275,757.70 32,225,306.31 (11,425,276.06) 180,869,315.57 20,484,475.79 (1,333,651.81)
Other comprehensive
- - - - - -
income
Total comprehensive
171,275,757.70 32,225,306.31 (11,425,276.06) 180,869,315.57 20,484,475.79 (1,333,651.81)
income
Dividend received from
associates in the current 14,329,928.96 - - 48,000,000.00 - -
period
(VIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS
The Group's major financial instruments include bank deposits, account receivables, interest
receivable, other receivables, other current assets, short-term borrowings, account
payables,non-current liabilities due within one year, interest payable, other payables, other current
liabilities, long-term borrowings, notes payable, long-term payables, and other non-current
liabilities. Details of these financial instruments are disclosed in their correspondent notes. 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 technique to analyze possible effects from reasonableness
and possible change of risk variable to current profits and losses or shareholders' equity. Given
that any risk variable seldom changing in isolation, the correlation between variables will have a
significant effect on the final amount affected by the change of one risk variable. Thus the
following content is under the assumption that the change of each variable is conducted
independently.
- 71 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(VIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS- continued
1. Risk management objectives and policies
The Group's risk management objectives are to achieve a 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 stakeholders. Based on these risk management objectives,
the Group's basic risk management strategy is to identify and analyse the Group's exposure to
various risks, establish an appropriate maximum tolerance to risk, and implement risk
management, and monitors regularly and effectively these exposures to ensure the risks are
monitored at a certain level.
1.1 Market risk
1.1.1Currency 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 RMB.As at 31 December 2015,
the balance of the Group's assets and liabilities are both denominated in RMB except that the
assets and liabilities set out below are denominated in foreign currencies.
Unit: RMB
Items Ending balance Opening balance
Cash and cash equivalents 3,685,009.43 17,023,769.22
The Group closely monitors the effects of changes in the foreign exchange rates on the Group's
currency risk exposures.
Foreign currency sensitive analysis
Given that the Company holds a relatively small amount of assets and liabilities in foreign
currency, the management considers that, where all other variables are held constant, the
reasonably possible changes in exchange rates will not have a material pre-tax effect on the profit
or loss for the period and shareholders' equity.
1.1.2Interest rate risk - risk of changes in cash flows
The Group's cash flow interest rate risk of financial instruments relates primarily to variable-rate
borrowings (see Note (V) 23, Note (V) 25, Note (V) 26, Note (V) 27 and Note (V) 29 for details).
It is the Group's policy to keep its borrowings at variable rate of interests so as to eliminate the
fair value interest rate risk.
Analysis on interest rate risk
The sensitivity analysis on interest rate risk is based on the following assumptions:
Changes in the market interest rate may influence the interest income or expense of the
variable rate financial instruments;
For fixed rate financial instruments measured at fair value, changes in the market interest rate
only influence their interest income or expense;
- 72 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(VIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS- continued
1. Risk management objectives and policies - continued
1.1 Market risk - continued
1.1.2Interest rate risk - risk of changes in cash flows - continued
For derivative financial instruments designated as hedging instruments, changes in the
market interest rate influence their fair values, and all the hedges of interest rate risk are
expected to be highly effective;
Changes in the fair value of derivative financial instruments and other financial assets and
liabilities are calculated at the market interest rate as at the balance sheet date, using the
method of discounted cash flow analysis.
On the basis of the above assumptions, where all other variables are held constant, the reasonably
possible changes in the interest rate may have the following pre-tax effect on the profit or loss for
the period and shareholders' equity:
Unit: RMB
Current year Prior year
Change in Effect on Effect on
Item interest rate Effect on profit shareholders' equity Effect on profit shareholders' equity
External borrowings 1% increase (16,512,521.04) (16,512,521.04) (13,422,345.39) (13,422,345.39)
External borrowings 1% decrease 16,512,521.04 16,512,521.04 13,422,345.39 13,422,345.39
1.2 Credit risk
As at 31 December 2015, 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:
(1) 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
(2) The amount of financial guarantees contract disclosed in Note (XIV)9(3) "Guarantees with
related parties".
In order to minimize the credit risk, the Group has delegated the finance department to be
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 they are deposited with banks with high credit
ratings.
- 73 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(VIII) RISKS ASSOCIATED WITH FINANCIAL INSTRUMENTS- 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.
As at 31 December 2015, the Group's current liabilities exceeds current assets by RMB
919,299,683.91. Loans are main source of funding for the Group. As at 31 December 2015, and
the Group still possessed RMB 1,708,721,692.27unused bank credit line (As at 31 December
2014: RMB 3,006,874,955.92). Hence, the Group's Management believes the Group does not
exist significant liquidity risk.
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 Within 1 year 1 year to 5 years Over 5 years
Non-derivative financial assets
Cash and bank balances 321,121,926.73 - -
Accounts receivable 50,257,814.22 - -
Interest receivable 1,138,739.73 - -
Other receivables 58,666,231.60 - -
Other current assets 235,000,000.00 - -
Non-derivative financial liabilities
Short-term borrowings 308,848,590.28 - -
Accounts payable 13,502,745.52 - -
Interest payable 28,404,479.52 - -
Other payables 480,066,219.49 - -
Other noncurrent liabilities due within
747,921,766.13 - -
one year
Other current liabilities 6,198,542.47 - -
Long-term borrowings 24,110,731.06 133,844,390.24 611,821,778.95
Bonds payable 56,946,000.00 1,072,547,683.33 -
Long-term payables(note) - 251,417,853.31 -
Other non-current liabilities 11,760,000.00 221,396,000.00 -
Note: Long-termpayables do not have fixed maturity date, the Group assumes to repay long-term
payables at the end of the 5th year.
(IX) DISCLOSURE ON FAIR VALUE
1. Financial assets and financial liabilities that are not measured at fair value
The management considers that the carrying amounts of financial assets and financial liabilities
measured at amortized cost the financial statements are approximate to their fair values.
- 74 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1. Parent of the Company
Unit: RMB
Voting
Shareholding power
Registered Registered percentage percentage
Entity name location Business nature capital (RMB) (%) (%)
Port and shipping, offshore oil service, real
Nanshan Guangdong
estate development and new construction 900,000,000.00 51.79 51.79
Group Shenzhen
material
The ultimate control party of the Company is Nanshan Group.
2. Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in note (VII)1.
3. Associates and joint ventures of the Company
Details of the associates and joint ventures of the Company are set out in note (VII) 2.
4. Other related parties of the Company
Relationship between other related
Name of other related parties parties and the Company
Shenzhen Nanshan Real Estate Development Co., Ltd. ("Nanshan Real Estate Company") Controlled by the same party
Chixiao Project Company Controlled by the same party
Chixiao Construction Company Controlled by the same party
Chixiao Business Co., Ltd. ("Chixiao Business Company") Controlled by the same party
Shenzhen New Nanshan Holdings (Group)Co.,Ltd.
Controlled by the same party
(Originally "Yahgee Modular House Co., Ltd.", "New Nanshan Holdings")
Shenzhen Chiwan Oriental Logistics Co., Ltd. ("Oriental Logistics Company") Controlled by the same party
Shenzhen Chiwan Real Estate Development Co., Ltd. ("Chiwan Real Estate Company") Controlled by the same party
Hefei Baowan International Logistics Center Co., Ltd.("Hefei Baowan") Controlled by the same party
Nanshan Hong Kong Controlled by the same party
Directors, general manager, vice-general managers, etc. of the Company Key management personnel
- 75 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions
(1) Provision and receipt of services
Receipt of service
Unit: RMB
Pricing and decision-making
Details of related party procedures of related party
Related party transaction transactions Amount for the current period Amount for the prior period
Chixiao Project
Construction service By reference to market price 2,688,395.00 16,886,030.34
Company
Nanshan Group Power supply service By reference to market price 2,876,386.96 3,665,489.17
Total 5,564,781.96 20,551,519.51
Provision of service
Unit: RMB
Pricing and decision-making
Details of related party procedures of related party
Related party transaction transactions Amount for the current period Amount for the prior period
CSE Stack (storage) service By reference to market price 2,724,336.00 3,456,744.34
Loading and unloading
CSE By reference to market price 1,781,531.46 6,521,955.54
service
CPEC Stack (storage) service By reference to market price 815,718.96 822,671.55
Trusteeship management
Hefei Baowan By reference to market price 397,690.39 300,000.00
service
Loading and unloading
CPEC By reference to market price 42,405.23 83,103.08
service
Nanshan Group Maintenance service By reference to market price 41,957.95 32,883.57
Nanshan Group Stack (storage) service By reference to market price 9,600.00 9,600.00
CDFC Maintenance service By reference to market price 5,750.00 18,147.00
Total 5,818,989.99 11,245,105.08
(2) Leases with related parties
Leases where the Group is the lessor:
Unit: RMB
Lease income recognized Lease income recognized
Name of lessee Type of leased assets in the current year in the prior year
Nanshan Group Office building 6,258,106.46 6,062,897.67
CDFC Office building 1,165,280.76 1,120,457.52
CSE Office building 785,836.56 785,836.56
CPEC Office building 455,129.28 464,490.72
Chiwan Real Estate Office building 740,143.72 177,850.40
Oriental Logistics Company Office building 131,040.00 131,040.00
Nanshan Real Estate Company Office building 85,240.80 80,645.76
Chixiao Enterprise Office building 39,042.15 -
Total 9,659,819.73 8,823,218.63
- 76 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions- continued
(2) Leases with related parties- continued
Leases where the Group is the lessee:
Unit: RMB
Lease payment recognized Lease payment recognized
Name of lessor Type of leased assets in the current year in the prior year
Nanshan Group Site (note 1) 28,088,931.65 29,151,086.50
Nanshan Group Site (note 2) 2,053,780.27 2,069,649.60
New Nanshan Holdings Building 4,920.00 19,680.00
Total 30,147,631.92 31,240,416.10
Note 1: The leased assets include two pieces of lands which the Company has leased from
Nanshan Group: one is to the east of Chiwan 1st Road, with the lease term from 1
September 2006 to 31 August 2026; the other is the Chiwan east coast venue (phase I),
with the lease term from 1 January 2012 to 14 July 2034.
Note 2: The leased land is located to the southeast of the intersection of Chiwan 2nd Road and
6th Road, which Shenzhen Baowan has leased from Nanshan Group, the Company's
parent company.
(3) Guarantees with related parties
The Group as the guaranteed party:
Unit: RMB
Whether execution
Guaranteed Inception date Expiration date of of guarantee has
Guarantor Guaranteed items party Guaranteed amount of guarantee guarantee been completed
Nanshan Group(note 1) Corporate bond The Company 570,000,000.00 17/12/2012 17/12/2019 No
Nanshan Group(note 1) Medium term note The Company 400,000,000.00 09/03/2012 09/03/2017 No
Long-term
Nanshan Group(note 2) The Company 200,000,000.00 31/03/2012 30/03/2029 No
borrowings
Long-term
Nanshan Group(note 3) The Company 120,000,000.00 29/11/2012 28/11/2029 No
borrowings
Long-term Guangzhou No
Nanshan Group(note 4) 59,996,000.00 22/04/2014 21/04/2029
borrowings Baowan
Long-term Nanjing No
Nanshan Group(note 5) 58,864,000.00 29/05/2014 28/05/2029
borrowings Baowan
Long-term No
Nanshan Group(note 6) Wuhan Baowan 56,600,000.00 17/12/2014 16/12/2029
borrowings
Total 1,465,460,000.00
Note 1: Guarantee provided by Nanshan Group for coporate bond and medium term note. See
note (V) 26 for details.
Note 2: Pursuant to the long-term borrowings contract, the loan withdrawal is expired, and the
Company can no longer use the residual facility. Nanshan Group only provides guarantee
for the closing balance of the loan within the guaranteed term. As at 31 December 2015,
the closing balance of the aforesaid guaranteed loan is RMB126,019,651.68.
- 77 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions- continued
(3)Guarantees with related parties - continued
Note 3: Pursuant to the long-term borrowings contract, the loan withdrawal is expired, and the
Company can no longer use the residual facility. Nanshan Group only provides guarantee
for the closing balance of the loan within the guaranteed term. As at 31 December 2015,
the closing balance of the aforesaid guaranteed loan is RMB 55,204,650.36.
Note 4: Pursuant to the long-term borrowings contract, Guangzhou Baowancan apply for loans
within the scope of guaranteed amount and guaranteed term. Nanshan Group and the
Company has provide guarantee for the borrowings by 22.64% and 77.36% of the amount
respectively. As at 31 December 2015, the closing balance of the aforesaid guaranteed
loan is RMB 110,719,415.02.
Note 5: Pursuant to the long-term borrowings contract, Nanjing Baowan can apply for loans
within the scope of guaranteed amount and guaranteed term. Nanshan Group and the
Company has provide guarantee for the borrowings by 22.64% and 77.36% of the amount
respectively. As at 31 December 2015, the closing balance of the aforesaid guaranteed
loan is RMB 84,010,879.23.
Note 6: Pursuant to the long-term borrowings contract, Wuhan Baowancan apply for loans within
the scope of guaranteed amount and guaranteed term.Nanshan Group and the Company
has provide guarantee for the borrowings by 22.64% and 77.36% of the amount
respectively. As at 31 December 2015, the closing balance of the aforesaid guaranteed
loan is RMB 71,548,013.48.
Closing balances of the above note2 to note 6 add up to RMB 447,502,609.77. See note (V) 25 for
details.
(4) Borrowings/loans with related parties
Unit: RMB
Amount for the
Related party current period Inception date Maturity date Remarks
Borrowed from：
CDFC 100,000,000.00 30/12/2015 30/12/2016 Note 1
Nanshan Hong Kong 6,000,000.00 28/12/2015 28/12/2016 Note 2
Nanshan Group (300,000,000.00) 03/07/2014 03/07/2015 Note 3
Total (194,000,000.00)
Note 1: The loan is to the business turnover of the Group. The annual interest rate is 4.1325%.
Note 2: The loan is used for the business turnoverof China Huitong, a subsidiary the
Company.The annual interest rate is 4.3500%.
Note 3: The loan was to the business turnover of the Group. The annual interest rate was 5.5000%.
The loan was paid off in full in the current period.
- 78 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
5. Related party transactions- continued
(5) Interest incomes and expenses with related parties
Interest/investment income gained from deposits/purchase of bank financing products
Unit: RMB
Type of related party Pricing principle of related party Amount for the current Amount for the prior
Related party transaction transaction period period
Negotiated interest rate
CDFC (note) Interest income 104,145.68 146,894.86
(referred to market rate)
Note:Interest incomes from CDFC is due to current deposits placed in CDFC by the Group.
Interest expense for borrowings
Unit: RMB
Type of related party Pricing principle of related Amount for Amount for the prior
Related party transaction party transaction the current period period
Negotiated interest rate
Nanshan Group Interest expense 71,161,521.03 69,325,430.93
(referred to market rate)
Negotiated interest rate
Nanshan Hong Kong Interest expense 11,378,791.67 13,199,883.09
(referred to market rate)
Negotiated interest rate
CDFC Interest expense 22,958.33 -
(referred to market rate)
Total 82,563,271.03 82,525,314.02
(6) Compensation for key management personnel
Unit: RMB
Amount incurred in the Amount incurred in the
Item current period prior period
Compensation for key management personnel 5,795,754.00 6,066,538.08
- 79 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
6. Amounts due from / to related parties
(1) Amounts due from related parties
Unit: RMB
Closing balance Opening balance
Bad debt Bad debt
Item Related party Carrying amount provision Carrying amount provision
CSE 1,179,367.56 11,793.68 557,417.99 5,574.18
Hefei Baowan 397,690.39 - - -
Accounts receivable CPEC 314,290.30 3,142.90 369,168.03 3,691.68
Chiwan Real Estate 243,315.68 2,433.16 22,231.30 222.31
Total 2,134,663.93 17,369.74 948,817.32 9,488.17
Hefei Baowan 79,200.00 - - -
CSE 11,571.48 115.71 11,571.48 115.71
Other receivable Nanshan Group 2,750.00 27.50 - -
New Nanshan Holdings - - 20,000.00 200.00
Total 93,521.48 143.21 31,571.48 315.71
(2) Amounts due to related parties
Unit: RMB
Item Related party Closing balance Opening balance
Short-term Borrowing CDFC 100,000,000.00 -
Accounts payable Nanshan Group 4,340,013.89 5,559,882.42
Chixiao Construction Company 102,998.66 9,740.00
CSE 16,554.40 16,554.40
Total 4,459,566.95 5,586,176.82
Interest payable Nanshan Group 6,758,208.33 15,099,874.99
CDFC 22,958.33 -
Total 6,781,166.66 15,099,874.99
Other payables Nanshan Group 16,228,098.95 2,603,375.28
Chixiao Project Company 15,004,897.43 8,002,634.47
Nanshan Hong Kong 11,921,567.32 559,795.85
Chixiao Construction Company 2,156,683.47 8,599,662.10
CSE 255,726.00 247,442.00
CPEC 204,224.04 204,224.04
Oriental Logistics Company 26,165.00 5,000.00
Total 45,797,362.21 20,222,133.74
Non-current liabilities due within one year Nanshan Group 700,000,000.00 -
CSE 785,836.56 785,836.56
Total 700,785,836.56 785,836.56
Other current liabilities Nanshan Hong Kong 6,000,000.00 -
Nanshan Group - 300,000,000.00
Total 6,000,000.00 300,000,000.00
Long-term payables Nanshan Group 251,417,853.31 251,417,853.31
Other non-current liabilities Nanshan Hong Kong 210,000,000.00 210,000,000.00
CSE 4,665,035.58 5,450,872.14
Nanshan Group - 700,000,000.00
Total 214,665,035.58 915,450,872.14
- 80 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(X) RELATED PARTY RELATIONSHIPS AND TRANSACTIONS- continued
7. Amounts deposited in related parties
Cash and bank balances deposited in related parties
Unit: RMB
Item Related party Closing balance Opening balance
Cash and bank balances CDFC 5,685,248.40 89,077,788.66
(XI) COMMITMENTS AND CONTINGENCY
1.Significant commitments
(1) Capital commitments
Unit: RMB
Closing balance Opening balance
Capital commitments that have been entered into but have not been
recognized in the financial statements:
- Commitment for acquisition and construction of long-term assets 97,735,552.60 30,367,793.33
(2)Operating lease commitments
At the balance sheet date, the Group had the following commitments in respect of non-cancellable
operating leases:
Unit: RMB
Closing balance Opening balance
Minimum lease payments under non-cancellable operating leases:
1st year subsequent to the balance sheet date 32,009,734.28 30,861,429.30
2nd year subsequent to the balance sheet date 37,502,362.78 35,957,640.55
3rd year subsequent to the balance sheet date 38,491,811.94 36,757,640.55
Subsequent periods 478,357,846.90 485,029,330.65
Total 586,361,755.90 588,606,041.04
2. Contingency
There is no significant contingency needed to be disclosed for the Group.
(XII) EVENTS AFTER THE BALANCE SHEET DATE
1. Capital injection to Baowan Holdings
Approved by the 1st 2016 Extraordinary Shareholders'' Meeting on 30 January 2016, the Company
and Nanshan Group jointly inject capital of RMB220billion to Baowan Holdings by 22.64% and
77.36% respectively. Of the capital injection, RMB200 billion is allocated to share capital while
RMB 20 million is allocated to capital reserve. After the capital injection, shareholding proportion
of the Company and Nanshan Group remains unchanged,and the share capital of Baowan
Holdings is changed to RMB250 billion.
- 81 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XII) EVENTS AFTER THE BALANCE SHEET DATE - continued
2. Significant Investment Plan
Approved by the Board of Directors on 12 January 2016, Baowan Holdings, subsidiary of the
Company,plans to start new investment projects of logistics park in Ningbo, Zhejiang Province
and Chengdu, Sichuan Province. The estimated investment amounts to RMB 312 million and
RMB 489 million, with occupation of land up to 300.50 MU and 208 MU respectively.
3. Significant Acquisition
(1) Approved by the Board of Directors on 16 December 2015, Baowan Holdings, subsidiary of
the Company, would acquire 100% shares of Beijing JinMuCaoYe Co., Ltd within RMB
275 million. After the acqusition, Baowan Holdings further invest RMB 13.99million to
reform the acquired assets. This acquisition is a business combination not involving
enterprises under common control.It is not a material asset reorganization which is defined
in Regulationson Material Asset Reorganizations of Listed Company, nor a related party
transaction. By 24 March 2016, Baowan Holdings has completed the acquisition, and
finished the alternation of business registration of the acquired company.
(2) Approved by the Board of Directors on16 December 2015, Jiashan Baowan,subsidiary of
the Company would acquire assets owned by Jiangjin (Zhejiang) Furniture Co., Ltd by
RMB 125 million. The target assets are land use rights and buildings locatedin Jiashan
economic development zone, JiangsuProvince. This transaction is not a material asset
reorganization which is defined in Regulations on Material Asset Reorganizations of Listed
Company, nor a related party transaction. By 22 April 2016, the above transaction is still in
progress.
(XIII) OTHER SIGNIFICANT EVENTS
1. Borrowing costs
Unit: RMB
Amount of borrowing
Item costs during the year Capitalization rate
Construction in progress 4,799,074.19 6.5070%
Sub-total of borrowing costs capitalized during the year 4,799,074.19
Borrowing costs recognized in profit or loss during the year 167,722,185.43
Total 172,521,259.62
- 82 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting
(1) Determining basis of reporting segment and accounting policy
Based on the Group's internal organization structure, management requirements and internal
operating system, the operations of the Group are classified into four operating segments. The
reporting segments are determined based on the specific circumstances of the Group.On the basis
of operating segments, the Group identifies four reporting segments. The Group's management
periodically evaluates the operating results of these reporting segments to make decisions about
resources to be allocated to the segments and assess their performance. Major products and
services delivered or provided by each of the reporting segments are: stack (storage), loading and
unloading, port management, office leasing and others.
Segment information is disclosed in accordance with the accounting policies and measurement criteria
adopted by each segment when reporting to management. The measurement criteria are consistent
with the accounting and measurement criteria in the preparation of the financial statements.
- 83 -
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIII) OTHER SIGNIFICANT EVENTS- continued
2. Segment reporting- continued
(2) Reporting segment information
Unit: RMB
Stack (storage) Loading and unloading Port management Office leasing and others Unallocated items Inter-segment eliminations Total
Current year Prior year Current year Prior year Current year Prior year Current year Prior year Current year Prior year Current year Prior year Current year Prior year
Operating income:
External revenue 520,194,029.77 459,420,777.75 36,833,559.77 118,875,200.46 16,648,654.99 65,928,619.94 76,603,271.81 68,734,005.11 - - - - 650,279,516.34 712,958,603.26
Inter-segment revenue - - - - - - - - - - - - - -
Total segment operating
520,194,029.77 459,420,777.75 36,833,559.77 118,875,200.46 16,648,654.99 65,928,619.94 76,603,271.81 68,734,005.11 - - - - 650,279,516.34 712,958,603.26
income
Reconciling items:
Total operating income in the financial statements 650,279,516.34 712,958,603.26
Operating costs 201,719,829.80 165,537,486.60 33,060,506.50 45,155,722.90 13,189,448.38 15,751,307.76 49,032,730.20 33,217,409.97 - - - - 297,002,514.88 259,661,927.23
Segment operating profit
318,474,199.97 293,883,291.15 3,773,053.27 73,719,477.56 3,459,206.61 50,177,312.18 27,570,541.61 35,516,595.14 - - - - 353,277,001.46 453,296,676.03
(loss)
Reconciling items:
Business taxes and levies 28,945,688.71 17,119,335.33 2,049,567.46 4,429,630.78 926,398.15 2,456,689.39 4,262,514.24 2,561,226.09 - - - - 36,184,168.56 26,566,881.59
Selling expenses 1,794,630.86 423,872.43 - - - - - - - - - - 1,794,630.86 423,872.43
General and administrative
58,032,564.09 49,842,021.39 4,109,131.97 12,896,631.09 1,857,314.93 7,152,518.66 8,545,819.50 7,456,871.61 22,986,696.69 17,883,232.40 - - 95,531,527.18 95,231,275.15
expenses
Financial expenses - - - - - - - - 165,115,346.59 146,278,726.91 - - 165,115,346.59 146,278,726.91
Impairment loss of assets - - - - - - - - 975,282.77 (20,260.63) - - 975,282.77 (20,260.63)
Investment income - - - - - - - - 75,110,506.18 93,892,421.67 - - 75,110,506.18 93,892,421.67
Operating profit 229,701,316.31 226,498,062.00 (2,385,646.16) 56,393,215.69 675,493.53 40,568,104.13 14,762,207.87 25,498,497.44 (113,966,819.87) (70,249,277.01) - - 128,786,551.68 278,708,602.25
Non-operating income 13,638,110.34 11,868,125.52
Non-operating expenses 1,520,513.80 (11,228.60)
Total profit 229,701,316.31 226,498,062.00 (2,385,646.16) 56,393,215.69 675,493.53 40,568,104.13 14,762,207.87 25,498,497.44 (113,966,819.87) (70,249,277.01) - - 140,904,148.22 290,587,956.37
- 84 -
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIII) OTHER SIGNIFICANT EVENTS-continued
2. Segment reporting- continued
(2) Reporting segment information- continued
Unit: RMB
Stack (storage) Loading and unloading Port management Office leasing and others Unallocated items Inter-segment eliminations Total
Current year Prior year Current year Prior year Current year Prior year Current year Prior year Current year Prior year Current year Prior year Current year Prior year
Total segment assets 6,112,058,474.17 5,722,135,345.02 432,778,652.28 1,480,603,444.91 195,614,611.07 821,148,073.13 900,055,844.21 856,089,448.05 4,309,057,943.37 3,244,003,582.20 (6,305,608,885.93) (6,734,350,021.50) 5,643,956,639.17 5,389,629,871.81
Reconciling items:
Total assets in the financial
6,112,058,474.17 5,722,135,345.02 432,778,652.28 1,480,603,444.91 195,614,611.07 821,148,073.13 900,055,844.21 856,089,448.05 4,309,057,943.37 3,244,003,582.20 (6,305,608,885.93) (6,734,350,021.50) 5,643,956,639.17 5,389,629,871.81
statements
Total segment liabilities 3,683,349,074.33 3,904,288,586.05 260,808,180.25 1,010,235,302.36 117,884,490.09 560,280,184.95 542,406,437.14 584,121,146.93 1,791,445,607.21 1,179,949,729.09 (2,823,028,658.71) (3,837,667,340.86) 3,572,865,130.31 3,401,207,608.52
Reconciling items:
Total liabilities in the
3,683,349,074.33 3,904,288,586.05 260,808,180.25 1,010,235,302.36 117,884,490.09 560,280,184.95 542,406,437.14 584,121,146.93 1,791,445,607.21 1,179,949,729.09 (2,823,028,658.71) (3,837,667,340.86) 3,572,865,130.31 3,401,207,608.52
financial statements
Supplementary information:
Depreciation 86,260,134.07 50,349,824.25 6,107,851.34 13,005,538.42 2,760,729.90 7,212,919.07 12,702,584.26 7,432,936.97 - - - - 107,831,299.57 78,001,218.71
Amortization 33,257,254.13 24,967,740.56 2,354,857.97 6,449,256.07 1,064,388.51 3,576,780.94 4,897,431.21 3,685,884.60 - - - - 41,573,931.82 38,679,662.17
Interest income - - - - - - - - 5,895,451.65 2,727,333.08 - - 5,895,451.65 2,727,333.08
Interest expense - - - - - - - - 167,722,185.43 145,868,926.26 - - 167,722,185.43 145,868,926.26
Impairment losses
recognized in the current - - - - - - - - 975,282.77 (20,260.63) - - 975,282.77 (20,260.63)
period
Investment income from
long-term equity investment - - - - - - - - 58,968,248.53 61,708,345.78 - - 58,968,248.53 61,708,345.78
under equity method
Long-term equity
investments under equity - - - - - - - - 582,600,360.74 537,962,041.17 - - 582,600,360.74 537,962,041.17
method
Non-current assets other than
- - - - - - - - 4,393,821,145.20 3,956,816,586.46 - - 4,393,821,145.20 3,956,816,586.46
long-term equity investments
Capital expenditure - - - - - - - - 551,067,384.83 766,066,354.77 - - 551,067,384.83 766,066,354.77
Including.: Expenditure
arising from construction in - - - - - - - - 392,050,771.00 618,112,321.24 - - 392,050,771.00 618,112,321.24
progress
Expenditure arising from
- - - - - - - - 8,461,997.66 9,074,553.13 - - 8,461,997.66 9,074,553.13
purchase of fixed assets
Expenditure arising from
purchase of Investment 125,037.42 - 125,037.42 -
properties
Expenditure arising from
- - - - - - - - 150,429,578.75 138,879,480.40 - - 150,429,578.75 138,879,480.40
purchase of intangible assets
- 85 -
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIII) OTHER SIGNIFICANT EVENTS - continued
2. Segment reporting- continued
(3) External revenue by geographical area of source and non-current assets by geographical location
All external revenuesof the Group were derived from PRC and all non-current assets of the Group
were located in the PRC.
(4) Degree of reliance on major customers
There is no transaction from single customer accounting for over 10% of the total income of the
Group.
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS
1.Cash and bank balances
Unit: RMB
Item Closing balance Opening balance
Cash:
RMB 2,067.93 2,585.00
Singapore Dollar 5,933.93 -
Hong Kong Dollar 2,819.04 1,546.82
Euro 2,698.00 2,834.80
United States Dollar 1,135.75 612.00
Sub-total 14,654.65 7,578.62
Bank balances:
RMB 27,237,604.20 109,709,731.60
Hong Kong Dollar 1,268,546.63 83,216.87
United States Dollar 287,974.48 376,431.83
Sub-total 28,794,125.31 110,169,380.30
Total 28,808,779.96 110,176,958.92
2. Accounts receivable
(1) Disclosure of accounts receivable by categories:
Unit: RMB
Closing balance Opening balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Net book
Proportio Proportion Proportion( Proportion( Net book value
value
Category Amount n(%) Amount (%) Amount %) Amount %)
Accounts
receivable that are
individually
- - - - - - - - - -
significant and
provided for bad
debt individually
Accounts receivable for which bad debt provision has been assessed by portfolios
Portfolio 1 - - - - - - - - - -
Portfolio 2 22,515,346.10 99.28 225,153.46 1.00 22,290,192.64 34,730,740.71 99.53 347,307.44 1.00 34,383,433.27
Subtotal of
22,515,346.10 99.28 225,153.46 22,290,192.64 34,730,740.71 99.53 347,307.44 34,383,433.27
portfolios
Accounts
receivable that are
not individually
significant but for
164,138.40 0.72 164,138.40 100.00 - 164,138.37 0.47 164,138.37 100.00 -
which bad debt
provision has been
assessed
individually
Total 22,679,484.50 100.00 389,291.86 22,290,192.64 34,894,879.08 100.00 511,445.81 34,383,433.27
- 86 -
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
2. Accounts receivable - continued
(1) Disclosure of accounts receivable by categories - continued:
Accounts receivable that are not individually significant but for which bad debt provision has
been assessed individually:
Unit: RMB
Closing balance
Bad debt Proportion of
Name of entity Receivables provision provision (%) Basis of provision
Shenzhen Lanjing Offshore
164,138.40 164,138.40 100.00 Debtor is likely to go bankruptcy
Technology Co., Ltd.
Accounts receivable portfolios for which bad debt provision has been assessed using the
percentage of accounts receivable method:
Unit: RMB
Closing balance
Proportion of provision
Name of portfolio Carrying amount Bad debt provision (%)
Portfolio 2 22,515,346.10 225,153.46 1.00
Basis for determining the above portfolio: See Note(III)10.2.
(2) Provision being recorded and reversed in the current period
Provision being recorded is zero and being reversed is RMB 122,153.95 in the current period.
(3) Top five entities with the largest balances of accounts receivable
Unit: RMB
Proportion of the
amount to the total
accounts Bad debt provision
Name of entity Amount receivable(%) Closing Balance
Customer 3 2,635,614.07 11.62 26,356.14
Customer 4 2,525,869.01 11.14 25,258.69
Customer 17 1,584,143.56 6.98 15,841.44
Customer 18 1,395,248.97 6.15 13,952.49
Customer 19 1,319,041.97 5.82 13,190.42
Total 9,459,917.58 41.71 94,599.18
- 87 -
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
3. Other receivables
(1) Disclosure of other receivables by categories
Unit: RMB
Closing balance Opening balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Proportion( Proportion( Net book value Proportion( Proportion(% Net book value
Category Amount %) Amount %) Amount %) Amount )
Other receivables
that are individually
significant and - - - - - - - - - -
provided for bad
debt individually
Other receivables for which bad debt provision has been assessed by portfolios
Portfolio 1 1,518,053,170.11 99.91 - - 1,518,053,170.11 1,477,984,371.08 99.91 - - 1,477,984,371.08
Portfolio 2 1,349,341.95 0.09 13,493.42 1.00 1,335,848.53 1,331,775.51 0.09 13,317.76 1.00 1,318,457.75
Subtotal of
1,519,402,512.06 100.00 13,493.42 1,519,389,018.64 1,479,316,146.59 100.00 13,317.76 1,479,302,828.83
portfolios
Other receivables
that are not
individually
significant but for
- - - - - - - - - -
which bad debt
provision has been
assessed
individually
Total 1,519,402,512.06 100.00 13,493.42 1,519,389,018.64 1,479,316,146.59 100.00 13,317.76 1,479,302,828.83
Other receivables portfolios for which bad debt provision has been assessed using the percentage
of accounts receivable method:
Unit: RMB
Closing balance
Proportion of provision
Name of portfolio Other receivables Bad debt provision (%)
Portfolio 2 1,349,341.95 13,493.42 1.00
Basis for determining the above portfolio: See Note(III)10.2.
(2) Provision being recorded and reversed in the current period
Provision being recorded is RMB 175.66 and being reversed is zero in the current period.
(3) Top five entities with the largest balances of accounts receivable
Unit: RMB
Proportion of the
amount to the Bad debt
Name of entity Nature Amount Aging
total other closing Balance
receivables(%)
Amount due from
Baowan Holdings 1,516,264,841.65 2 to 3 year 99.79 -
related parties
Amount due from
Chengdu Oil-Gas Base 734,356.07 Within 1 year 0.05 -
related parties
Customer 20 Deposits 88,126.00 1 to 2 year 0.01 881.26
Amountdue from
Hefei Baowan 79,200.00 Within 1 year 0.01 -
related parties
Customer 21 Deposits 65,950.70 1to 2 year - 659.51
Total 1,517,232,474.42 99.86 1,540.77
- 88 -
SHENZHEN CHIWNA PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
4. Long-term equity investments
Unit: RMB
Changes in the current period
Adjustment on
Investment income other Announcing Closing
Increase in Decrease in recognized by comprehensive Other equity cash dividends balance on
Investee Opening balance investment investment equity method income changes or profits Provision Others Closing balance provision
1. Subsidiaries
Baowan Holdings 830,531,987.58 - - - - - - - - 830,531,987.58 -
Shenzhen Baowan 41,273,772.13 - - - - - - - - 41,273,772.13 -
Chengdu oil gas base - 31,820,000.00 - - - - - - - 31,820,000.00 -
Subtotal 871,805,759.71 31,820,000.00 - - - - - - - 903,625,759.71 -
2. Associates
CSE 427,311,548.07 - - 54,808,242.46 - - 14,329,928.96 - - 467,789,861.57 -
CDFC 105,202,034.31 - - 6,445,061.26 - - - - - 111,647,095.57 -
CPEC 5,448,458.79 - - (2,285,055.19) - - - - - 3,163,403.60 -
Subtotal 537,962,041.17 - - 58,968,248.53 - - 14,329,928.96 - - 582,600,360.74 -
Total 1,409,767,800.88 31,820,000.00 - 58,968,248.53 - - 14,329,928.96 - - 1,486,226,120.45 -
There is no restrictions on the ability of transferring funds to the Company from the investee entities which are held by the Company as long-term
equity investment as at 31 December 2015.
- 89 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
5.Long-term borrowings
Categories of long-term borrowings
Unit: RMB
Item Closing balance Opening balance
Guaranteed loans (note) 181,224,302.04 182,524,302.04
Note: The annual interest rate of the guaranteed loans is 4.9000% (31 December 2014: 6.5500%).
Nanshan Group has provided a full-amount irrevocable guarantee with joint-liability for
the said loans. See note (XIV) 9(3) for details.
6. Operating income and operating costs
Unit: RMB
Amount recognized in the current period Amount recognized in the prior period
Item Operating income Operating costs Operating income Operating costs
Principal operating activities 165,619,871.51 107,497,621.13 331,233,106.97 126,116,577.94
Other operating activities 798,124.52 3,186,784.41 8,606,126.89 2,888,454.36
Total 166,417,996.03 110,684,405.54 339,839,233.86 129,005,032.30
7. Investment income
Details of investment income
Unit: RMB
Amount recognized Amount recognized
Item in the current period in the prior period
Income from long-term equity investments under equity method 58,968,248.53 61,708,345.78
Income from bank financing products 15,739,426.42 31,218,518.95
Income from long-term equity investments under cost method 1,217,702.94 2,287,265.95
Total 75,925,377.89 95,214,130.68
- 90 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
8. Supplementary information to the cash flow statement
Supplementary information to the cash flow statement
Unit: RMB
Supplementary information Current period Prior period
1. Reconciliation of net profit to cash flow from operating activities:
Net profit 27,165,472.23 148,882,226.75
Add: Provision for impairment losses of assets (121,978.29) (57,250.99)
Depreciation of fixed assets 10,291,248.18 10,090,148.00
Amortization of intangible assets 16,786,846.12 16,831,792.42
Depreciation of investment properties 5,920,143.84 5,415,819.00
Losses (gains) on disposal of fixed assets, intangible assets and 67,310.36 (89,433.39)
other long-term assets
Financial expenses 64,085,023.82 79,914,822.59
Losses (gains) arising from investments (75,925,377.89) (95,214,130.68)
Decrease (increase) in deferred tax assets (9,497,897.67) 13,504.75
Decrease (increase) in inventories (47,250.88) 129,018.69
Decrease (increase) in receivables from operating activities 12,697,490.83 5,773,660.09
Increase (decrease) in payables from operating activities (21,954,941.46) 6,042,970.66
Net cash flow from operating activities 29,466,089.19 177,733,147.89
2. Net changes in cash and cash equivalents:
Closing balance of cash (note) 28,808,779.96 110,176,958.92
Less: Opening balance of cash 110,176,958.92 59,424,719.52
Add: Closing balance of cash equivalents - -
Less: Opening balance of cash equivalents - -
Net increase (decrease) in cash and cash equivalents (81,368,178.96) 50,752,239.40
9. Related party transactions
(1) Provision and receipt of services
Receipt of service
Unit: RMB
Pricing and decision-making
Details of related party procedures of related party Amount for the Amount for the
Related party transaction transactions current period prior period
Chixiao Project Company Construction service By reference to market price 2,688,395.00 16,610,430.34
Nanshan Group Power supply service By reference to market price 2,558,805.26 3,317,186.17
Total 5,247,200.26 19,927,616.51
- 91 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
9. Related party transactions- continued
(1) Provision and receipt of services - continued
Provision of service
Unit: RMB
Pricing and decision-making
Details of related party procedures of related party Amount for the Amount for the
Related party transaction transactions current period prior period
CSE Stack (storage) By reference to market price 2,724,336.00 3,456,744.34
CSE Loading and unloading service By reference to market price 1,781,531.46 6,521,955.54
CPEC Stack (storage) By reference to market price 815,718.96 822,671.55
CPEC Loading and unloading service By reference to market price 42,405.23 83,103.08
Nanshan Group Maintenance service By reference to market price 41,957.95 32,883.57
Nanshan Group Stack (storage) By reference to market price 9,600.00 9,600.00
CDFC Maintenance service By reference to market price 5,750.00 18,147.00
Total 5,421,299.60 10,945,105.08
(2) Leases with related parties
Leases where the Company is the lessor:
Unit: RMB
Lease income recognized Lease income recognized
Name of lessee Type of leased assets in the current year in the current year
Nanshan Group Office building 6,258,106.46 6,062,897.67
CDFC Office building 1,165,280.76 1,120,457.52
CSE Office building 785,836.56 785,836.56
CPEC Office building 455,129.28 464,490.72
Chiwan Real Estate Office building 740,143.72 177,850.40
Nanshan Real Estate Company Office building 85,240.80 80,645.76
Chixiao Enterprise Office building 39,042.15 -
Total 9,528,779.73 8,692,178.63
Leases where the Company is the lessee:
Unit: RMB
Lease payment recognized Lease payment recognized
Name of lessor Type of leased assets in the current year in the prior year
Nanshan Group Site 28,088,931.65 29,151,086.50
- 92 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
9. Related party transactions- continued
(3) Guarantees with related parties
The Company as the guarantor:
Unit: RMB
Inception date of Expiration date Whether execution of guarantee
Guaranteed party Guaranteed amount guarantee of guarantee has been completed
Guangzhou Baowan (note) 205,004,000.00 22/04/2014 21/04/2029 No
Wuhan Baowan (note) 193,400,000.00 17/12/2014 16/12/2029 No
Nanjing Baowan (note) 201,136,000.00 29/05/2014 28/05/2029 No
Total 599,540,000.00
Note: See Note V(5)3 for details of closing balances of guaranteed bank loans.
The Company as theguaranteed party:
Unit: RMB
Inception date of Expiration date Whether execution of guarantee
Guarantor Guaranteed amount guarantee of guarantee has been completed
Nanshan Group 570,000,000.00 17/12/2012 17/12/2019 No
Nanshan Group 400,000,000.00 09/03/2012 09/03/2017 No
Nanshan Group 200,000,000.00 31/03/2012 30/03/2029 No
Nanshan Group 120,000,000.00 29/11/2012 28/11/2029 No
Total 1,290,000,000.00
(4) Borrowings/loans with related parties
Unit: RMB
Related party Amount for the current period Inception date Maturity date Remarks
Borrowed from:
CDFC 100,000,000.00 30/12/2015 30/12/2016 Note 1
Nanshan Group (300,000,000.00) 03/07/2014 03/07/2015 Note 2
Total (200,000,000.00)
Lent to:
Baowan Holdings 39,225,650.78 Note 3 Note 3
Chengdu oil gas base 734,356.07 Note 3 Note 3
Total 39,960,006.85
Note 1:The loan is intended for the business turnover of the Group. The annual interest rate is
4.1325%.
Note 2: The loan is intended for the business turnover of the Group. The annual interest rate is
5.5000%. The loan is fully paid off in the current period.
Note 3: There is no fixed term for repayment for the above mentioned borrowings and loans.
The interest rates are based on the market interest rates.
- 93 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
9. Related party transactions- continued
(5) Interest incomes and expenses with related parties
Interest income gained from deposits
Unit: RMB
Type of related Pricing principle of related party Amount for thecurrent Amount for the prior
Related party party transaction transaction period period
Negotiated interest rate
Subsidiaries Interest income 65,871,262.71 53,071,839.37
(by reference to market rate)
Negotiated interest rate
CDFC.(note) Interest income 103,787.60 146,894.86
(by reference to market rate)
Total 65,975,050.31 53,218,734.23
Note: The Company has placed current deposits ofwhich generated interest income in the current
period.
Interest expense for borrowings
Unit: RMB
Type of related Pricing principle of related party Amount for the current
Related party party transaction transaction period Amount for the prior period
Negotiated interest rate
Nanshan Group Interest expense 55,725,833.34 56,046,666.66
(by reference to market rate)
Negotiated interest rate
CDFC Interest expense 22,958.33 -
(by reference to market rate)
Total 55,748,791.67 56,046,666.66
10. Amounts due from/to related parties
(1) Amounts due from related parties
Unit: RMB
Closing balance Opening balance
Bad debt Bad debt
Item Related party Carrying amount provision Carrying amount provision
Accounts receivable CSE 1,179,367.56 11,793.68 557,417.99 5,574.18
CPEC 314,290.30 3,142.90 369,168.03 3,691.68
Chiwan Real Estate 243,315.68 2,433.16 22,231.30 222.31
Total 1,736,973.54 17,369.74 948,817.32 9,488.17
Other receivable Baowan Holdings 1,516,264,841.65 - 1,477,039,190.87 -
Chengdu oil gas 734,356.07 - - -
CSE 11,571.48 115.71 11,571.48 115.71
Hefei Baowan 79,200.00 - - -
Total 1,517,089,969.20 115.71 1,477,050,762.35 115.71
- 94 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
(XIIV) NOTES TO KEY ITEMS IN THE COMPANY'S FINANCIAL STATEMENTS - continued
10. Amounts due from/to related parties - continued
(2) Amounts due to related parties
Unit: RMB
Item Related party Closing balance Opening balance
Short-term borrowing CDFC 100,000,000.00 -
Accounts payable Nanshan Group 4,340,013.89 5,559,882.42
Chixiao Construction
102,998.66 9,740.00
Company
CSE 16,554.40 16,554.40
Total 4,459,566.95 5,586,176.82
Interest payable Nanshan Group 6,758,208.33 15,099,874.99
CDFC 22,958.33 -
Total 6,781,166.66 15,099,874.99
Other payables Shenzhen Baowan 41,621,271.53 41,806,212.89
Chixiao Project
5,793,423.81 7,172,014.47
Company
Nanshan Group 623,281.06 529,337.23
Chixiao Construction
502,000.00 1,133,894.52
Company
CSE 255,726.00 247,442.00
CPEC 204,224.04 204,224.04
Total 48,999,926.44 51,093,125.15
Non-current liabilities due within one year Nanshan Group 700,000,000.00 -
CSE 785,836.56 785,836.56
Total 700,785,836.56 785,836.56
Other current liabilities Nanshan Group - 300,000,000.00
Other non-current liabilities CSE 4,665,035.58 5,450,872.14
Nanshan Group - 700,000,000.00
Total 4,665,035.58 705,450,872.14
11. Amounts deposited in related parties
Cash and bank balances deposited in related parties
Unit: RMB
Item Related party Closing balance Opening balance
Cash and bank balances CDFC 3,108,387.56 89,077,788.66
- 95 -
SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2014
1. Breakdown of non-recurring profit or loss
Unit:RMB
Item Amount
Profit or loss on disposal of non-current assets (303,073.93)
Government grants recognized in profit or loss for the current period(other than
grants which are closely related to the Company's business and are either in fixed 12,491,552.18
amounts or determined under quantitative methods in accordance with the national
standard)
Other non-operating income or expenses other than the above (70,881.71)
Tax effects (2,906,602.66)
Effects attributable to minority interests (after tax) (660,109.94)
Total 8,550,883.94
Note: To improve the usage of spare cash, Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (the
"Company") and its subsidiaries use spare cash to purchase bank financing products (see
Note(V)42) every year, and classify the investment income gained form bank financing products as
recurring profit and loss.
2. Return on equity (ROE) and earnings per share ("EPS")
The ROE and EPS have been prepared by the Company in accordance with Information Disclosure and
Presentation Rules for Companies Making Public Offering of Securities No. 9 - Calculation and
Disclosure of Return on Equity and Earnings per Share (Revised 2010) issued by China Securities
Regulatory Commission.
Unit: RMB
Weighted average EPS
Profit for the reporting period return on net assets (%) Basic EPS Diluted EPS
Net profit attributable to ordinary
5.31% 0.40 Not applicable
shareholders of the Company
Net profit after deduction of non-recurring
profits or losses attributable to ordinary 4.81% 0.36 Not applicable
shareholders of the Company
The supplementary information was signed by the following responsible persons on 10 March 2015:
Tian Junyan Yu Zhongxia Sun Yuhui
Legal Representative Person in Charge of Chief Accountant
the Accounting Body
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