SHENZHEN CHIWAN PETROLEUM SUPPLY BASE CO., LTD.
THE INTERIM FINANCIAL REPORT FOR YEAR 2017
Legal Representative：
Chief Financial Officer：
Financial Manager：
1
Financial Statements for the First Half of 2017 (Unaudited)
I. Audit Report
Whether or not audited for the half-year report:
□ Yes √ No
II. Financial Statements
The currency for the explanatory notes of financial statements is: RMB Yuan
2
1.Balance Sheet
Consolidated Currency: RMB
Items Ending Balance Beginning Balance
Current Assets:
Cash and bank balances 491,913,131.33 524,609,097.58
Notes receivable 1,400,000.00 -
Accounts receivable 71,101,110.24 43,862,804.61
Prepayments 2,310,602.14 748,064.45
Interest receivable 363,407.67 423,404.92
Dividends receivable -
Other receivables 63,870,649.98 63,863,606.97
Inventories 781,212.98 961,855.72
Other current assets 23,161,678.79 14,424,379.64
Total Current Assets 654,901,793.13 648,893,213.89
Non-current Assets: -
Long-term equity investments 621,222,760.45 602,194,915.06
Investment properties 1,757,704,348.02 1,606,049,338.07
Fixed assets 1,051,111,408.39 877,096,096.64
Construction in progress 425,117,867.25 601,906,964.62
Disposal of fixed assets 15,835.78 -
Intangible assets 2,307,173,208.35 2,245,211,656.35
Development expenditure 2,083,751.85 1,330,674.42
Goodwill 11,133,118.55 11,133,118.55
Deferred tax assets 31,377,171.96 24,317,786.92
Other non-current assets 1,083,434,577.17 930,907,761.60
Total Non-current Assets 7,290,374,047.77 6,900,148,312.23
TOTAL ASSETS 7,945,275,840.90 7,549,041,526.12
Current Liabilities: -
Short-term borrowings 1,574,000,000.00 850,000,000.00
notes payable 35,891,264.20 16,200,019.20
Accounts payable 15,938,534.08 11,500,505.03
Receipts in advance 6,749,008.98 9,185,065.04
Employee benefits payable 17,477,387.34 21,162,917.90
Taxes payable 28,551,246.35 30,107,734.45
Interest payable 17,611,302.22 23,856,299.00
Other payables 453,944,880.13 437,522,424.61
Non-current liabilities due within one year 238,763,603.40 633,057,978.40
Other current liabilities 564,000,000.00
Total Current Liabilities 2,388,927,226.70 2,596,592,943.63
Non-current Liabilities: -
Long-term borrowings 1,165,227,475.45 1,186,288,100.45
Bonds payable 569,382,500.00 568,641,500.00
Long-term payables -
Special payable 1,309,524.80 -
Deferred income 48,773,043.55 49,599,079.39
Deferred tax liabilities 22,654,820.35 22,812,085.88
Other non-current liabilities 1,113,988,969.48 511,018,207.18
Total Non-current Liabilities 2,921,336,333.63 2,338,358,972.90
TOTAL LIABILITIES 5,310,263,560.33 4,934,951,916.53
SHAREHOLDERS' EQUITY: -
Share capital 230,600,000.00 230,600,000.00
Capital reserve 234,141,186.09 234,141,186.09
Other comprehensive income 652,079.14 652,079.14
Special reserve 7,211,087.75 6,774,707.73
Surplus reserve 318,603,562.42 318,603,562.42
Unappropriated profits 977,132,348.00 966,064,644.53
Total shareholders' equity attributable to equity
1,768,340,263.40 1,756,836,179.91
holders of the Company
Minority interests 866,672,017.17 857,253,429.68
TOTAL SHAREHOLDERS' EQUITY 2,635,012,280.57 2,614,089,609.59
TOTAL LIABILITIES AND
7,945,275,840.90 7,549,041,526.12
SHAREHOLDERS' EQUITY
Legal Representative: Tian Junyan Chief financial officer：Yu Zhongxia Financial manager：Sun Yuhui
2.Balance Sheet
Parent company Currency: RMB
Items Ending Balance Beginning Balance
Current Assets:
Cash and bank balances 7,764,595.66 14,320,382.62
Accounts receivable 35,507,444.10 22,179,847.58
Prepayments 295,791.96 199,347.18
Interest receivable -
Dividends receivable -
Other receivables 181,921,475.25 458,310,323.30
Inventories 579,563.39 666,721.31
Other current assets -
Total Current Assets 226,068,870.36 495,676,621.99
Non-current Assets: -
Long-term equity investments 3,283,654,584.75 3,235,207,239.36
Investment properties 112,654,896.96 115,535,029.89
Fixed assets 49,555,008.25 53,000,328.21
Construction in progress 1,991,644.61 2,626,533.00
Disposal of fixed assets 14,316.63 -
Intangible assets 268,479,036.74 276,936,159.10
Deferred tax assets -
Other non-current assets 2,943,595.75 3,100,849.21
Total non-current assets 3,719,293,083.69 3,686,406,138.77
TOTAL ASSETS 3,945,361,954.05 4,182,082,760.76
Current Liabilities: -
Short-term borrowings 930,000,000.00 800,000,000.00
notes payable 3,553,780.83 -
Accounts payable 12,462,695.95 10,800,195.25
Employee benefits payable 8,154,739.74 8,499,705.90
Taxes payable 1,812,626.52 1,325,799.55
Interest payable 17,197,458.30 22,814,519.98
Other payables 121,360,468.16 85,907,775.53
Non-current liabilities due within one year 1,349,351.16 401,349,351.16
Other current liabilities 220,000,000.00
Total Current Liabilities 1,095,891,120.66 1,550,697,347.37
Non-current Liabilities: -
Long-term borrowings 377,024,302.04 378,824,302.04
Bonds payable 569,382,500.00 568,641,500.00
Deferred tax liability -
Other non-current liabilities 494,343,531.60 255,018,207.18
Total Non-current Liabilities 1,440,750,333.64 1,202,484,009.22
TOTAL LIABILITIES 2,536,641,454.30 2,753,181,356.59
SHAREHOLDERS' EQUITY: -
Share capital 230,600,000.00 230,600,000.00
Capital reserve 204,534,849.49 204,534,849.49
Special reserve 6,813,000.99 6,468,869.88
Surplus reserve 318,603,562.42 318,603,562.42
Unappropriated profits 648,169,086.85 668,694,122.38
TOTAL SHAREHOLDERS' EQUITY 1,408,720,499.75 1,428,901,404.17
TOTAL LIABILITIES AND SHAREHOLDERS'
3,945,361,954.05 4,182,082,760.76
EQUITY
4
3.Income Statements
Consolidated Currency: RMB
Items Current Period Same Period Last Year
I. Total operating income 356,763,898.79 331,048,288.65
Including: Operating income 356,763,898.79 331,048,288.65
Less: Total operating costs 337,244,721.32 304,779,907.33
Including: Operating costs 156,076,406.18 143,269,502.63
Business taxes and levies 32,659,574.83 18,867,639.42
Selling expenses 252,176.88 917,022.63
General and administrative expenses 58,031,246.43 55,345,349.17
Financial expenses 90,232,036.89 86,362,478.62
Impairment losses of assets -6,719.89 17,914.86
Add: Investment income 17,027,845.39 14,962,394.28
Including: Income from investments in associates and joint ventures 17,027,845.39 13,758,166.75
II. Operating profit 36,547,022.86 41,230,775.60
Add: Non-operating income 2,769,634.48 2,702,848.88
Including: Gains from disposal of non-current assets 74,068.43 27,777.65
Less: Non-operating expenses 339,295.44 851,692.02
Including: Losses from disposal of non-current assets 4,086.00 36,978.43
III. Gross profit 38,977,361.90 43,081,932.46
Less: Income tax expenses 18,517,694.33 12,085,315.99
IV. Net profit 20,459,667.57 30,996,616.47
Net profit attributable to owners of the Company 11,067,703.47 20,104,453.49
Profit or loss attributable to minority shareholders 9,391,964.10 10,892,162.98
V. Post-tax net value of other comprehensive income 0.00
Post-tax net value of other comprehensive income attributable to owners of
0.00
the Company
Including: Translation differences arising on translation of financial
0.00
statements denominated in foreign currencies
Post-tax net value of other comprehensive income attributable to minority
0.00
shareholders
VI. Total comprehensive income: 20,459,667.57 30,996,616.47
Total comprehensive income attributable to owners of the Company 11,067,703.47 20,104,453.49
Total comprehensive income attributable to minority shareholders 9,391,964.10 10,892,162.98
VII. Earnings per share:
(I) Basic earnings per share 0.05 0.09
(II) Diluted earnings per share Not applicable Not applicable
Legal Representative: Tian Junyan Chief financial officer：Yu Zhongxia Financial manager：Sun Yuhui
5
4.Income Statements
Parent company Currency: RMB
Items Current Period Same Period Last Year
I. Operating income 70,879,580.33 68,844,361.06
Less: Operating costs 41,945,992.95 45,529,220.40
Business taxes and levies 1,354,137.66 1,666,673.87
General and administrative expenses 15,161,220.96 17,990,662.26
Financial expenses 50,153,808.12 44,955,212.43
Impairment loss of assets -35,125.53
Add: Investment income 17,027,845.39 14,962,394.28
Including: Income from investments in associates and joint ventures 17,027,845.39 13,758,166.75
II. Operating profit -20,707,733.97 -26,299,888.09
Add: Non-operating income 187,444.02 26,125.02
Including: Gains from disposal of non-current assets 66,896.90
Less: Non-operating expenses 4,745.58 117,787.56
Including: Losses from disposal of non-current assets 1,843.85 1,000.00
III. Gross profit -20,525,035.53 -26,391,550.63
Less: Income tax expenses -9,868,962.60
IV. Net profit -20,525,035.53 -16,522,588.03
V. Other comprehensive income
VI. Total comprehensive income -20,525,035.53 -16,522,588.03
VII. Earnings per share:
(I) Basic earnings per share Not applicable Not applicable
(II) Diluted earnings per share Not applicable Not applicable
6
5.Cash Flow Statements
Consolidated Currency: RMB
Items Current Period Same Period Last Year
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 347,898,552.59 340,836,855.86
Refund of tax and levies
Other cash receipts relating to operating activities 15,908,870.63 16,961,342.77
Sub-total of cash inflows from operating activities 363,807,423.22 357,798,198.63
Cash payments for goods purchased and services received 62,312,837.66 64,402,911.49
Cash payments to and on behalf of employees 54,554,753.81 53,260,826.50
Payments of various taxes 78,830,702.02 67,664,546.72
Other cash payments relating to operating activities 26,951,385.64 21,359,814.12
Sub-total of cash outflows from operating activities 222,649,679.13 206,688,098.83
Net Cash Flows from Operating Activities 141,157,744.09 151,110,099.80
II. Cash Flows from Investing Activities: - -
Cash receipts from investment income 12,908,798.55
Net cash receipts from disposal of fixed assets, intangible assets and other long-term
105,485.00 84,062.00
assets
Other cash receipts relating to investing activities 2,429,524.80 257,590,350.00
Sub-total of cash inflows from investing activities 2,535,009.80 270,583,210.55
Cash payments to acquire or construct fixed assets, intangible assets and other
423,128,715.28 513,233,238.63
long-term assets
Cash payments to acquire investments 2,000,000.00
Net cash outflows of procurement of subsidiaries and other business units 254,014,920.01
Other cash payments relating to investing activities 42,144.00 45,000,000.00
Sub-total of cash outflows from investing activities 425,170,859.28 812,248,158.64
Net Cash Flows from Investing Activities -422,635,849.48 -541,664,948.09
III. Cash Flows from Financing Activities: - -
Cash receipts from capital contributions 498,080,000.00
Cash receipts from borrowings 914,000,000.00 449,570,000.00
Other cash receipts relating to financing activities 1,204,000,000.00 294,000,000.00
Sub-total of cash inflows from financing activities 2,118,000,000.00 1,241,650,000.00
Cash repayments of borrowings 605,355,000.00 205,955,000.00
Cash payments for distribution of dividends or profits or settlement of interest
82,952,894.94 43,767,861.82
expenses
Other cash payments relating to financing activities 1,180,908,155.17 274,894,948.41
Sub-total of cash outflows from financing activities 1,869,216,050.11 524,617,810.23
Net Cash Flows from Financing Activities 248,783,949.89 717,032,189.77
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash Equivalents -1,810.75 -
V. Net Increase(Decrease)in Cash and Cash Equivalents -32,695,966.25 326,477,341.48
Add: Opening balance of Cash and Cash Equivalents 524,609,097.58 321,121,926.73
VI. Closing Balance of Cash and Cash Equivalents 491,913,131.33 647,599,268.21
7
6.Cash Flow Statements
Parent company Currency: RMB
Items Current Period Same Period Last Year
I. Cash Flows from Operating Activities:
Cash receipts from sales of goods and rendering of services 60,240,948.93 67,132,430.77
Refund of tax and levies
Other cash receipts relating to operating activities 2,143,815.67 4,451,235.52
Sub-total of cash inflows from operating activities 62,384,764.60 71,583,666.29
Cash payments for goods purchased and services received 15,844,107.22 25,952,137.67
Cash payments to and on behalf of employees 19,749,505.52 29,028,207.27
Payments of various taxes 3,758,798.59 6,135,326.17
Other cash payments relating to operating activities 3,786,742.21 9,879,000.80
Sub-total of cash outflows from operating activities 43,139,153.54 70,994,671.91
Net Cash Flows from Operating Activities 19,245,611.06 588,994.38
II. Cash Flows from Investing Activities: - -
Cash receipts from investment income 12,908,798.55
Net cash receipts from disposal of fixed assets, intangible assets and other
55,000.00 1,012.00
long-term assets
Other cash receipts relating to investing activities 285,261,087.45 459,335,570.00
Sub-total of cash inflows from investing activities 285,316,087.45 472,245,380.55
Cash payments to acquire or construct fixed assets, intangible assets and
8,913,446.82 2,141,437.33
other long-term assets
Cash paid to acquire investments 31,419,500.00 302,376,564.58
Other cash payments relating to investing activities 919,832.93 138,173,595.45
Sub-total of cash outflows from investing activities 41,252,779.75 442,691,597.36
Net Cash Flows from Investing Activities 244,063,307.70 29,553,783.19
III. Cash Flows from Financing Activities: - -
Cash receipts from borrowings 270,000,000.00 190,000,000.00
Other cash receipts relating to financing activities 703,896,689.83 4,451,531.60
Sub-total of cash inflows from financing activities 973,896,689.83 194,451,531.60
Cash repayments of borrowings 541,800,000.00 201,200,000.00
Cash payments for distribution of dividends or profits or settlement of
53,704,919.92 35,338,081.13
interest expenses
Other cash payments relating to financing activities 648,256,475.63 1,891,525.80
Sub-total of cash outflows from financing activities 1,243,761,395.55 238,429,606.93
Net Cash Flows from Financing Activities -269,864,705.72 -43,978,075.33
IV. Effect of Foreign Exchange Rate Changes on Cash and Cash
Equivalents
V．Net Increase(Decrease) in Cash and Cash Equivalents -6,555,786.96 -13,835,297.76
Add: Opening balance of Cash and Cash Equivalents 14,320,382.62 28,808,779.96
VI. Closing Balance of Cash and Cash Equivalents 7,764,595.66 14,973,482.20
8
7. Statement of Changes in Equity
Consolidated Currency: RMB
Amount for the current period Amount for the same period of last year
Attributable to shareholders of the Company Attributable to shareholders of the Company
Other Other
comprehensive Special Unappropriated Minority Total shareholders' comprehensive Special Unappropriated Minority Total shareholders'
ITEM Share capital Capital reserve income reserve Surplus reserve profits interests equity Share capital Capital reserve income reserve Surplus reserve profits interests equity
I. Closing balance of the preceding year 230,600,000.00 234,141,186.09 652,079.14 6,774,707.73 318,603,562.42 966,064,644.53 857,253,429.68 2,614,089,609.59 230,600,000.00 234,141,186.09 652,079.14 5,941,771.48 317,245,288.81 965,504,851.33 317,006,332.01 2,071,091,508.86
Add: Changes in accounting policies
Corrections of prior period errors
Business combination involving entities
under common control
II. Opening balance of the current year 230,600,000.00 234,141,186.09 652,079.14 6,774,707.73 318,603,562.42 966,064,644.53 857,253,429.68 2,614,089,609.59 230,600,000.00 234,141,186.09 652,079.14 5,941,771.48 317,245,288.81 965,504,851.33 317,006,332.01 2,071,091,508.86
III. Changes for the year - - - 436,380.02 - 11,067,703.48 9,418,587.49 20,922,670.99 832,936.25 1,358,273.61 559,793.20 540,247,097.67 542,998,100.73
(I) Comprehensive income - - - - - 11,067,703.48 9,391,964.09 20,459,667.57 1,918,066.81 19,126,906.00 21,044,972.81
(II) Owners' contributions and reduction in
- - - - - - - - 521,080,000.00 521,080,000.00
capital
1. Capital contribution from owners - - - - - - - - 521,080,000.00 521,080,000.00
2. Capital contribute from other equity
- - - - - - - -
instrument holders
3. Share-based payment recognised in
- - - - - - - -
owners' equity
4. Others - - - - - - - -
(III) Profit distribution - - - - - - - - 1,358,273.61 -1,358,273.61
1. Transfer to surplus reserve - - - - - - - - 1,358,273.61 -1,358,273.61
2. General Risk Provision - - - - - - - -
3. Distributions to shareholders - - - - - - - -
4. Others - - - - - - - -
(IV) Transfers within owners' equity - - - - - - - -
1. Capitalization of capital reserve - - - - - - - -
2. Capitalization of surplus reserve - - - - - - - -
3. Loss offset by surplus reserve - - - - - - - -
4. Others - - - - - - - -
(VI) Special reserve - - - 436,380.02 - - 26,623.40 463,003.42 832,936.25 40,191.67 873,127.92
1. Transfer to special reserve in the period - - - 649,012.68 - - 26,623.40 675,636.08 1,505,428.41 49,598.61 1,555,027.02
2. Amount utilized in the period - - - -212,632.66 - - - -212,632.66 -672,492.16 -9,406.94 -681,899.10
IV. Closing balance of the current year 230,600,000.00 234,141,186.09 652,079.14 7,211,087.75 318,603,562.42 977,132,348.01 866,672,017.17 2,635,012,280.58 230,600,000.00 234,141,186.09 652,079.14 6,774,707.73 318,603,562.42 966,064,644.53 857,253,429.68 2,614,089,609.59
9
8.Statement of Changes in Equity
Parent company Currency: RMB
Amount for the current period Amount for the same period of last year
Unappropriated Total shareholders' Unappropriated Total shareholders'
ITEM Share capital Capital reserve Special reserve Surplus reserve profits equity Share capital Capital reserve Special reserve Surplus reserve profits equity
I. Closing balance of the
1,488,671,948.27
preceding year 230,600,000.00 204,534,849.49 6,468,869.88 318,603,562.42 668,694,122.38 1,428,901,404.17 230,600,000.00 204,534,849.49 5,775,987.68 317,245,288.81 730,515,822.29
Add: Changes in accounting
policies
Corrections of prior period
errors
Others
II. Opening balance of the
1,488,671,948.27
current year 230,600,000.00 204,534,849.49 6,468,869.88 318,603,562.42 668,694,122.38 1,428,901,404.17 230,600,000.00 204,534,849.49 5,775,987.68 317,245,288.81 730,515,822.29
III. Changes for the year
344,131.11 - -20,525,035.53 -20,180,904.42 692,882.20 1,358,273.61 -61,821,699.91 -59,770,544.10
(I) Comprehensive income
- - -20,525,035.53 -20,525,035.53 -60,463,426.30 -60,463,426.30
(II) Owners' contributions
and reduction in capital
1. Capital contribution from
owners
2. Capital contribute from
other equity instrument
holders
3. Share-based payment
recognised in owners' equity
4. Others
(III) Profit distribution
- - - 1,358,273.61 -1,358,273.61
1. Transfer to surplus reserve
- - - 1,358,273.61 -1,358,273.61
2. Distributions to
shareholders
3. Others
(IV) Transfers within
owners' equity
1. Capitalization of capital
reserve
2. Capitalization of surplus
reserve
3. Loss offset by surplus
reserve
4. Others
(V) Special reserve
344,131.11 - - 344,131.11 692,882.20 692,882.20
1. Transfer to special reserve
in the period 530,140.38 - - 530,140.38 1,283,632.59 1,283,632.59
2. Amount utilized in the
period 186,009.27 - - 186,009.27 -590,750.39 -590,750.39
IV. Closing balance of the
1,428,901,404.17
current year 230,600,000.00 204,534,849.49 6,813,000.99 318,603,562.42 648,169,086.85 1,408,720,499.75 230,600,000.00 204,534,849.49 6,468,869.88 318,603,562.42 668,694,122.38
10
III. BASIC INFORMATION ABOUT THE COMPANY
Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (the “Company”) was established through the restructuring of
Shenzhen Chiwan Base Company pursuant to the approval of Shen Fu Ban Han (1995) No. 112 issued by the
General Office of Shenzhen Municipal People's Government.
The Company publicly issued domestic listed foreign shares (B Share) pursuant to the approval of Shen Fu Ban
Han (1995) No. 112 issued by the General Office of Shenzhen Municipal People's Government and Shen Zheng
Ban Fu (1995) No.33 issued by Shenzhen Securities Administration Office on 11 May 1995 and 16 June 1995
respectively. The total number of shares of the Company is 230,600,000 shares after the public offering, of which
China Nanshan Development (Group) Incorporation (“Nanshan Group”) holds 119,420,000 shares that accounts
for 51.79% the Company's equity shares. Pursuant to the Listing Notice of Shen Zheng Shi Zi (1995) No.14,
issued by Shenzhen Stock Exchange, the Company's shares were listed and traded on Shenzhen Stock Exchange
on 28 July 1995.
The registration place of the Company is Shenzhen City, Guangdong Province. The main business scopes of the
Company and its subsidiaries (together the “Group”) include: terminal and port operation services; lease of stack
area, storage and office building; provision of labor service, cargo handling and transportation, equipment lease,
supply of water, power and oil, and agency services for offshore crude oil logistics; operating bonded warehouse
and stack area, and commercial car park operation.
The scope of consolidated financial statements in the current period involves 52 subsidiaries. See Note (IX)
"Equity in other entities" for details. Changes of scope are subsidiaries acquired in business combinations
involving enterprises under common control. See Note (VIII) "Changes of consolidation scope" for details.
IV. BASIS OFPREPARATIONOFFINACIALSTATEMENTS
1、Basis of Preparation of financial statements
Basis of Preparation
The Group has adopted the Accounting Standards for Business Enterprises (the "ASBEs") issued by the Ministry
of Finance (the "MoF"), including standards newly issued and amended in 2014. In addition, the Group has
disclosed relevant financial information in accordance with Information Disclosure and Presentation Rules for
Companies Offering Securities to the Public No. 15 - General Provisions on Financial Reporting (Revised in
2014).
Basis of keeping accounts and principle of valuation
The Group has adopted the accrual basis of accounting. Except for certain financial instruments which are
measured at fair value, the Group adopts the historical cost as the principle of measurement in the financial
statements. Where assets are impaired, provisions for asset impairment are made in accordance with the relevant
requirements.
Under the historical cost measurement, asset should be measured at the value of cash or cash equivalents or fair
value paid to acquire the asset, whereas liability should be measured at the value of cash or assets received due to
shoulder present obligation, or at the contract amount of shouldering present obligation, or at the value of cash or
cash equivalents expected to pay for the liability in routine activities.
Under the historical cost measurement, asset should be measured at the value of cash or cash equivalents or fair
value paid to acquire the asset, whereas liability should be measured at the value of cash or assets received due to
shoulder present obligation, or at the contract amount of shouldering present obligation, or at the value of cash or
cash equivalents expected to pay for the liability in routine activities.
11
Pursuant to the observation of input value and the significance of the input value on the whole, measurements of
fair value are divided into the below three levels:
Level 1 input value is the unadjusted price of equivalent assets or liability which can be acquired in an active
market on the measurement date.
Level 2 input value is assets or liability except for those in Level 1, which are observable for the asset or liability,
either directly or indirectly
Level 3 input value is assets or liability which cannot be observed.
2、Going concern
Ended 30 Jun 2017, the amount of current liabilities had exceeded current assets RMB 1,734,025,433.57 in the
Group. The Nanshan Group promised that he will provide any necessary financial support to keep the continuing
operation. Hence, the financial statements have been prepared on a going concern basis.
V. SIGNIFICANT ACCOUNTING POLICIES, and ACCOUNTING ESTIMATES
1、 Statement of compliance with the ASBE
The financial statements of the Company have been prepared in accordance with the ASBEs, and present truly and
completely, the Company's and consolidated financial position as of 30 June 2017 and the Company's and
consolidated results of operations and cash flows for the half-year then ended in 2017.
2、 Accounting period
The Group has adopted the calendar year as its accounting year, i.e. from 1 January to 31 December.
3、Business Cycle
Buginese cycle is referred to the period from which an enterprise buys assets to manufacture to the date it
achieves cash or cash equivalents.
4、Functional Currency
Renminbi ("RMB") is the currency of the primary economic environment in which the Company and its
subsidiaries in the People's Republic of China (the "PRC") operate. Therefore, the Company and its PRC
subsidiaries choose RMB as their functional currency. Subsidiaries not located in PRC choose HK dollar as their
functional currency based on the primary economic environment. The Group adopts RMB to prepare its financial
statements.
5、The accounting treatment of business combinations involving enterprises under common
control and business combinations not involving enterprises under common control
Business combinations are classified into business combinations involving enterprises under common control and
business combinations not involving enterprises under common control.
5.1 Business combinations involving enterprises under common control
A business combination involving enterprises under common control is a business combination in which all of the
combining enterprises are ultimately controlled by the same party or parties both before and after the combination,
and that control is not transitory.
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Assets and liabilities obtained shall be measured at their respective carrying amounts as recorded by the
combining entities at the date of the combination. The difference between the carrying amount of the net assets
obtained and the carrying amount of the consideration paid for the combination is adjusted to the share premium
in capital reserve. If the share premium is not sufficient to absorb the difference, any excess shall be adjusted
against retained earnings.
Costs that are directly attributable to the combination are charged to profit or loss in the period in which they are
incurred.
5.2 Business combinations not involving enterprises under common control and goodwill
A business combination not involving enterprises under common control is a business combination in which all of
the combining enterprises are not ultimately controlled by the same party or parties before and after the
combination.
The cost of combination is the aggregate of the fair values, at the acquisition date, of the assets given, liabilities
incurred or assumed, and equity securities issued by the acquirer in exchange for control of the acquiree. The
intermediary expenses incurred by the acquirer in respect of auditing, legal services, valuation and consultancy
services, etc. and other associated administrative expenses attributable to the business combination are recognized
in profit or loss when they are incurred.
The acquiree's identifiable assets, liabilities and contingent liabilities, acquired by the acquirer in a business
combination, that meet the recognition criteria shall be measured at fair value at the acquisition date.
Where the cost of combination exceeds the acquirer's interest in the fair value of the acquiree's identifiable net
assets, the difference is treated as an asset and recognized as goodwill, which is measured at cost on initial
recognition. Where the cost of combination is less than the acquirer's interest in the fair value of the acquiree's
identifiable net assets, the acquirer firstly reassesses the measurement of the fair values of the acquiree's
identifiable assets, liabilities and contingent liabilities and measurement of the cost of combination. If after that
reassessment, the cost of combination is still less than the acquirer's interest in the fair value of the acquiree's
identifiable net assets, the acquirer recognizes the remaining difference immediately in profit or loss for the
current period.
Goodwill arising on a business combination is measured at cost less accumulated impairment losses, and is
presented separately in the consolidated financial statements.
6、Preparation of Consolidated Financial Statements
The scope of consolidation in the consolidated financial statements is determined on the basis of control. Control
is the power to govern the financial and operating policies of an enterprise so as to obtain benefits from its
operating activities. Once above-mentioned essential factor changed due to relevant matters and situation change,
the Group needs to reappraise the control.
The consolidation for a subsidiary is involved when the Group keeps the control, and not involved when the
Group loses the control.
For a subsidiary disposed of by the Group, the operating results and cash flows before the date of disposal (the
date when control is lost) are included in the consolidated income statement and consolidated statement of cash
flows, as appropriate.
For a subsidiary acquired through a business combination not involving enterprises under common control, the
operating results and cash flows from the acquisition date (the date when control is obtained) are included in the
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consolidated income statement and consolidated statement of cash flows, as appropriate, and no adjustment is
made to the opening balances and comparative figures in the consolidated financial statements.
No matter when the business combination occurs in the reporting period, subsidiaries acquired through a business
combination involving enterprises under common control are included in the Group's scope of consolidation as if
they had been included in the scope of consolidation from the date when they first came under the common
control of the ultimate controlling party. Their operating results and cash flows from the beginning of the earliest
reporting period are included in the consolidated income statement and consolidated statement of cash flows, as
appropriate.
The significant accounting policies and accounting periods adopted by the subsidiaries are determined based on the
uniform accounting policies and accounting periods set out by the Company.
All significant intra-group balances and transactions are eliminated on consolidation.
The portion of subsidiaries' equity that is not attributable to the Company is treated as minority interests and
presented as "minority interests" in the consolidated balance sheet within shareholders' equity. The portion of net
profits or losses of subsidiaries for the period attributable to minority interests is presented as "minority interests"
in the consolidated income statement below the "net profit" line item.
When the amount of loss for the period attributable to the minority shareholders of a subsidiary exceeds the
minority shareholders' portion of the opening balance of owners' equity of the subsidiary, the excess amount are
still allocated against minority interests.
Acquisition of minority interests or disposal of interest in a subsidiary that does not result in the loss of control
over the subsidiary is accounted for as equity transactions. The carrying amounts of the Company's interests and
minority interests are adjusted to reflect the changes in their relative interests in the subsidiary. The difference
between the amount by which the minority interests are adjusted and the fair value of the consideration paid or
received is adjusted to capital reserve under owners' equity. If the capital reserve is not sufficient to absorb the
difference, the excess are adjusted against retained earnings.
7、Recognition criteria of cash and cash equivalents
Cash comprises cash on hand and deposits that can be readily withdrawn on demand. Cash equivalents are the
Group's short-term, highly liquid investments that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
8、Translation of transactions and financial statements denominated in foreign currencies
8.1 Transactions denominated in foreign currencies
A foreign currency transaction is recorded, on initial recognition, by applying the spot exchange rate on the date of
the transaction.
At the balance sheet date, foreign currency monetary items are translated into RMB using the spot exchange rates
at the balance sheet date. Exchange differences arising from the differences between the spot exchange rates
prevailing at the balance sheet date and those on initial recognition or at the previous balance sheet date are
recognized in profit or loss for the period, except that (1) exchange differences related to a specific-purpose
borrowing denominated in foreign currency that qualify for capitalization are capitalized as part of the cost of the
qualifying asset during the capitalization period; (2) exchange differences related to hedging instruments for the
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purpose of hedging against foreign currency risks are accounted for using hedge accounting; (3) exchange
differences arising from available-for-sale non-monetary items (such as shares) denominated in foreign currencies
and changes in the carrying amounts (other than the amortized cost) of available-for-sale monetary items are
recognized as other comprehensive income.
Foreign currency non-monetary items measured at historical cost are translated to the amounts in functional
currency at the spot exchange rates on the dates of the transactions and the amounts in functional currency remain
unchanged. Foreign currency non-monetary items measured at fair value are re-translated at the spot exchange
rate on the date the fair value is determined. Difference between the re-translated functional currency amount and
the original functional currency amount is treated as changes in fair value (including changes of exchange rate)
and is recognized in profit and loss or as other comprehensive income.
8.2 Translation of financial statements denominated in foreign currencies
For the purpose of preparing the consolidated financial statements, financial statements of a foreign operation are
translated from the foreign currency into RMB using the following method: assets and liabilities on the balance
sheet are translated at the spot exchange rate prevailing at the balance sheet date; shareholders' equity items except
for retained earnings are translated at the spot exchange rates at the dates on which such items arose; all items in
the income statement as well as items reflecting the distribution of profits are translated at the spot exchange rates
on the dates of the transactions; the opening balance of retained earnings is the translated closing balance of the
previous year's retained earnings; the closing balance of retained earnings is calculated and presented on the basis
of each translated income statement and profit distribution item. The difference between the translated assets and
the aggregate of liabilities and shareholders' equity items is separately presented as the exchange differences
arising on translation of financial statements denominated in foreign currencies under the shareholders' equity in
the balance sheet.
Cash flows arising from a transaction in foreign currency and the cash flows of a foreign subsidiary are translated
at an exchange rate which approximates the spot exchange rate on the date of the cash flows. The effect of
exchange rate changes on cash and cash equivalents is regarded as a reconciling item and presented separately in
the cash flow statement as "effect of exchange rate changes on cash and cash equivalents".
The opening balances and the comparative figures of previous year are presented at the translated amounts in the
previous year's financial statements.
On disposal of the Group's entire interest in a foreign operation, or upon a loss of control over a foreign operation
due to disposal of certain interest in it or other reasons, the Group transfers the accumulated exchange differences
arising on translation of financial statements of this foreign operation attributable to the owners' equity of the
Company and presented under shareholders' equity, to profit or loss in the period in which the disposal occurs.
In case of a disposal or other reason that does not result in the Group losing control over a foreign operation, the
proportionate share of accumulated exchange differences arising on translation of financial statements are
re-attributed to minority interests and are not recognized in profit and loss. For partial disposals of equity interests
in foreign operations which are associates or joint ventures, the proportionate share of the accumulated exchange
differences arising on translation of financial statements of foreign operations is reclassified to profit or loss.
9、Financial Instruments
Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual
provisions of the instrument. Financial assets and financial liabilities are initially measured at fair value. For
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financial assets and financial liabilities at fair value through profit or loss, transaction costs are immediately
recognized in profit or loss. For other financial assets and financial liabilities, transaction costs are included in
their initial recognized amounts.
9.1Effective interest method
The effective interest method is a method of calculating the amortized cost of a financial asset or a financial
liability (or a group of financial assets or financial liabilities) and of allocating the interest income or interest
expense over the relevant period, using the effective interest rate. The effective interest rate is the rate that exactly
discounts estimated future cash flows through the expected life of the financial asset or financial liability or, where
appropriate, a shorter period to the net carrying amount of the financial asset or financial liability.
When calculating the effective interest rate, the Group estimates future cash flows considering all contractual
terms of the financial asset or financial liability (without considering future credit losses), and also considers all
fees paid or received between the parties to the contract giving rise to the financial asset and financial liability that
are an integral part of the effective interest rate, transaction costs, and premiums or discounts, etc.
9.2 Classification, recognition and measurement of financial assets
On initial recognition, the Group's financial assets are classified into one of the four categories, including financial
assets at fair value through profit or loss, held-to-maturity investments, loans and receivables, and
available-for-sale financial assets. All regular way purchases or sales of financial assets are recognized and
derecognized on a trade date basis.
9.2.1. Financial assets at fair value through profit or loss ("FVTPL")
Financial assets at FVTPL include financial assets held for trading and those designated as at fair value through
profit or loss.
A financial asset is classified as held for trading if one of the following conditions is satisfied: (i) It has been
acquired principally for the purpose of selling in the near term; or (ii) On initial recognition it is part of a portfolio
of identified financial instruments that the Group manages together and there is objective evidence that the Group
has a recent actual pattern of short-term profit-taking; or (iii) It is a derivative that is not designated and effective
as a hedging instrument, or a financial guarantee contract, or a derivative that is linked to and must be settled by
delivery of an unquoted equity instrument (without a quoted price in an active market) whose fair value cannot be
reliably measured.
A financial asset may be designated as at FVTPL upon initial recognition only when one of the following
conditions is satisfied: (i) Such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise result from measuring assets or recognizing the gains or losses on them on
different bases; or (ii) The financial asset forms part of a group of financial assets or a group of financial assets
and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in accordance
with the Group's documented risk management or investment strategy, and information about the grouping is
reported to key management personnel on that basis; (iii) Hybrid instruments associated with embedded
derivatives and financial assets measured at fair value and of which changes are recorded into the profits and
losses as specified in Accounting Standard for Business Enterprises No.22 - Financial Recognition and
Measurement of Instruments.
Financial assets at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes in
16
the fair value and any dividend or interest income earned on the financial assets are recognized in profit or loss.
9.2.2 Held-to-maturity investments
Held-to-maturity investments are non-derivative financial assets with fixed or determinable payments and fixed
maturity dates that the Group's management has the positive intention and ability to hold to maturity.
Held-to-maturity investments are subsequently measured at amortized cost using the effective interest method.
Gain or loss arising from DE recognition, impairment or amortization is recognized in profit or loss.
9.2.3. Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted
in an active market. Financial assets classified as loans and receivables by the Group include accounts receivable,
interest receivable, dividends receivable, and other receivables.
Loans and receivables are subsequently measured at amortized cost using the effective interest method. Gain or
loss arising from DE recognition, impairment or amortization is recognized in profit or loss.
9.2.4. Available-for-sale financial assets
Available-for-sale financial assets include non-derivative financial assets that are designated on initial recognition
as available for sale, and financial assets that are not classified as financial assets at fair value through profit or
loss, loans and receivables or held-to-maturity investments.
Available-for-sale financial assets are subsequently measured at fair value, and gains or losses arising from
changes in the fair value are recognized as other comprehensive income, except that impairment losses and
exchange differences related to amortized cost of monetary financial assets denominated in foreign currencies are
recognized in profit or loss, until the financial assets are derecognized, at which time the gains or losses are
released and recognized in profit or loss.
Interests obtained and the dividends declared by the investee during the period in which the available-for-sale
financial assets are held, are recognized in investment gains.
Investments in equity instruments that do not have a quoted market price in an active market and whose fair value
cannot be reliably measured, and derivative financial assets which are linked to and must be settled by delivery of
such unquoted equity instruments, are measured at cost.
9.3 Impairment of financial assets
The Group assesses at each balance sheet date the carrying amounts of financial assets other than those at fair
value through profit or loss. If there is objective evidence that a financial asset is impaired, the Group determines
the amount of any impairment loss. Objective evidence that a financial asset is impaired is evidence that, arising
from one or more events that occurred after the initial recognition of the asset, the estimated future cash flows of
the financial asset, which can be reliably measured, have been affected.
Objective evidence that a financial asset is impaired includes the following observable events:
(1) Significant financial difficulty of the issuer or obligor;
(2) A breach of contract by the borrower, such as a default or delinquency in interest or principal payments;
(3) The Group, for economic or legal reasons relating to the borrower's financial difficulty, granting a concession to the borrower;
(4) It becoming probable that the borrower will enter bankruptcy or other financial reorganizations;
17
(5) The disappearance of an active market for that financial asset because of financial difficulties of the issuer;
(6) Upon an overall assessment of a group of financial assets, observable data indicates that there is a measurable decrease in the
estimated future cash flows from the group of financial assets since the initial recognition of those assets, although the decrease
cannot yet be identified with the individual financial assets in the group. Such observable data includes:
- Adverse changes in the payment status of borrower in the group of assets;
- Economic conditions in the country or region of the borrower which may lead to a failure to pay the group of assets;
(7) Significant adverse changes in the technological, market, economic or legal environment in which the issuer operates,
indicating that the cost of the investment in the equity instrument may not be recovered by the investor;
(8) A significant or prolonged decline in the fair value of an investment in an equity instrument below its cost;
(9) Other objective evidence indicating there is an impairment of a financial asset.
- Impairment of financial assets measured at amortized cost
If financial assets carried at amortized cost are impaired, the carrying amounts of the financial assets are reduced
to the present value of estimated future cash flows (excluding future credit losses that have not been incurred)
discounted at the financial asset's original effective interest rate. The amount of reduction is recognized as an
impairment loss in profit or loss. If, subsequent to the recognition of an impairment loss on financial assets carried
at amortized cost, there is objective evidence of a recovery in value of the financial assets which can be related
objectively to an event occurring after the impairment is recognized, the previously recognized impairment loss is
reversed. However, the reversal is made to the extent that the carrying amount of the financial asset at the date the
impairment is reversed does not exceed what the amortized cost would have been had the impairment not been
recognized.
For a financial asset that is individually significant, the Group assesses the asset individually for impairment. For
a financial asset that is not individually significant, the Group assesses the asset individually for impairment or
includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses
them for impairment. If the Group determines that no objective evidence of impairment exists for an individually
assessed financial asset (whether significant or not), it includes the asset in a group of financial assets with similar
credit risk characteristics and collectively reassesses them for impairment. Assets for which an impairment loss is
individually recognized are not included in a collective assessment of impairment.
- Impairment of available-for-sale financial assets
When an available-for-sale financial asset is impaired, the cumulative loss arising from decline in fair value
previously recognized directly in capital reserve is reclassified from the capital reserve to profit or loss. The
amount of the cumulative loss that is reclassified from capital reserve to profit or loss is the difference between the
acquisition cost (net of any principal repayment and amortization) and the current fair value, less any impairment
loss on that financial asset previously recognized in profit or loss.
If, subsequent to the recognition of an impairment loss on available-for-sale financial assets, there is objective
evidence of a recovery in value of the financial assets which can be related objectively to an event occurring after
the impairment is recognized, the previously recognized impairment loss is reversed. The amount of reversal of
impairment loss on available-for-sale equity instruments is recognized as other comprehensive income, while the
amount of reversal of impairment loss on available-for-sale debt instruments is recognized in profit or loss.
- Impairment of financial assets measured at cost
18
If an impairment loss has been incurred on an investment in unquoted equity instrument (without a quoted price in
an active market) whose fair value cannot be reliably measured, or on a derivative financial asset that is linked to
and must be settled by delivery of such an unquoted equity instrument, the carrying amount of the financial asset
is reduced to the present value of estimated future cash flows discounted at the current market rate of return for a
similar financial asset. The amount of reduction is recognized as an impairment loss in profit or loss. The
impairment loss on such financial asset is not reversed once it is recognized.
9.4 Transfer of financial assets
The Group derecognizes a financial asset if one of the following conditions is satisfied: (1) the contractual rights
to the cash flows from the financial asset expire; or (2) the financial asset has been transferred and substantially all
the risks and rewards of ownership of the financial asset is transferred to the transferee; or (3) although the
financial asset has been transferred, the Group neither transfers nor retains substantially all the risks and rewards
of ownership of the financial asset but has not retained control of the financial asset.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a financial asset,
and it retains control of the financial asset, it recognizes the financial asset to the extent of its continuing
involvement in the transferred financial asset and recognizes an associated liability. The extent of the Group's
continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of the
transferred asset.
For a transfer of a financial asset in its entirety that satisfies the DE recognition criteria, the difference between (1)
the carrying amounts of the financial asset transferred; and (2) the sum of the consideration received from the
transfer and any cumulative gain or loss that has been recognized in other comprehensive income is recognized in
profit or loss.
If a part of the transferred financial asset qualifies for derecognition, the carrying amount of the transferred financial asset
is allocated between the part that continues to be recognized and the part that is derecognized, based on the respective fair
values of those parts. The difference between (1) the carrying amount allocated to the part derecognized; and (2) the sum of
the consideration received for the part derecognized and any cumulative gain or loss allocated to the part derecognized
which has been previously recognized in other comprehensive income, is recognized in profit or loss.
9.5 Classification, recognition and measurement of financial liabilities
Debt and equity instruments issued by the Group are classified into financial liabilities or equity on the basis of
the substance of the contractual arrangements and definitions of financial liability and equity instrument.
On initial recognition, financial liabilities are classified into financial liabilities at fair value through profit or loss
and other financial liabilities.
9.5.1 Financial liabilities at fair value through profit or loss
Financial liabilities at FVTPL consist of financial liabilities held for trading and those designated as at FVTPL on
initial recognition.
A financial liability is classified as held for trading if one of the following conditions is satisfied: (1) It has been
acquired principally for the purpose of repurchasing in the near term; or (2) On initial recognition it is part of a
portfolio of identified financial instruments that the Group manages together and there is objective evidence that
the Group has a recent actual pattern of short-term profit-taking; or (3) It is a derivative, except for a derivative
that is a designated and effective hedging instrument, or a financial guarantee contract, or a derivative that is
19
linked to and must be settled by delivery of an unquoted equity instrument (without a quoted price in an active
market) whose fair value cannot be reliably measured.
A financial liability may be designated as at FVTPL upon initial recognition only when one of the following
conditions is satisfied: (1) Such designation eliminates or significantly reduces a measurement or recognition
inconsistency that would otherwise result from measuring liabilities or recognizing the gains or losses on them on
different bases; or (2) The financial liability forms part of a group of financial liabilities or a group of financial
assets and financial liabilities, which is managed and its performance is evaluated on a fair value basis, in
accordance with the Group's documented risk management or investment strategy, and information about the
grouping is reported to key management personnel on that basis; (3) Hybrid instruments associated with
embedded derivatives and financial liabilities measured at fair value and of which changes are recorded into the
profits and losses as specified in Accounting Standard for Business Enterprises No.22 - Recognition and
Measurement of Financial Instruments.
Financial liabilities at FVTPL are subsequently measured at fair value. Any gains or losses arising from changes
in the fair value or any dividend or interest expenses related to the financial liabilities are recognized in profit or
loss.
9.5.2 Other financial liabilities
For a derivative liability that is linked to and must be settled by delivery of an unquoted equity instrument
(without a quoted price in an active market) whose fair value cannot be reliably measured, it is subsequently
measured at cost. Other financial liabilities (excluding liabilities with financial guarantee contracts) are
subsequently measured at amortized cost using the effective interest method, with gains or losses arising from
derecognition or amortizationrecognized in profit or loss.
9.5.3. Financial guarantee contracts
A financial guarantee contract is a contract by which the guarantor and the lender agree that the guarantor would
settle the debts or bear obligations in accordance with terms of the contract in case the borrower fails to settle the
debts. Financial guarantee contracts that are not designated as financial liabilities at fair value through profit or
loss are initially measured at their fair values less the directly attributable transaction costs. Subsequent to initial
recognition, they are measured at the higher of: (i) the amount determined in accordance with Accounting
Standard for Business Enterprises No. 13 - Contingencies; and (ii) the amount initially recognized less cumulative
amortizationrecognized in accordance with the principles set out in Accounting Standard for Business Enterprises
No. 14 - Revenue.
9.6Derecognition of financial liabilities
The Group derecognizes a financial liability (or part of it) only when the underlying present obligation (or part of
it) is discharged. An agreement between the Group (an existing borrower) and an existing lender to replace the
original financial liability with a new financial liability with substantially different terms is accounted for as an
extinguishment of the original financial liability and the recognition of a new financial liability.
When the Group derecognizes a financial liability or a part of it, it recognizes the difference between the carrying
amount of the financial liability (or part of the financial liability) derecognized and the consideration paid
(including any non-cash assets transferred or new financial liabilities assumed) in profit or loss.
9.7 Derivatives and embedded derivatives
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Derivatives are initially measured at fair value at the date when the derivative contracts are entered into and are
subsequently re-measured at fair value. The resulting gain or loss is recognized in profit or loss unless the
derivative is designated and highly effective as a hedging instrument, in which case the timing of the recognition
in profit or loss depends on the nature of the hedge relationship.
An embedded derivative is separated from the hybrid instrument, where the hybrid instrument is not designated as
a financial asset or financial liability at fair value through profit or loss, and treated as a standalone derivative if 1)
the economic characteristics and risks of the embedded derivative are not closely related to the economic
characteristics and risks of the host contract; and 2) a separate instrument with the same terms as the embedded
derivative would meet the definition of a derivative. If the Group is unable to measure the embedded derivative
separately either at acquisition or at a subsequent balance sheet date, it designates the entire hybrid instrument as a
financial asset or financial liability at fair value through profit or loss.
9.8 Offsetting financial assets and financial liabilities
Where the Group has a legal right that is currently enforceable to set off the recognized financial assets and
financial liabilities, and intends either to settle on a net basis, or to realize the financial asset and settle the
financial liability simultaneously, a financial asset and a financial liability shall be offset and the net amount is
presented in the balance sheet. Except for the above circumstances, financial assets and financial liabilities shall
be presented separately in the balance sheet and shall not be offset.
9.9 Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all
of its liabilities. The consideration received from issuing equity instruments and net of transaction costs, are added
to shareholders' equity.
All types of distributions (excluding stock dividends) made by the Group to holders of equity instruments, are
deducted from shareholders' equity. The Group does not recognize any changes in the fair value of equity
instruments.
10、Receivables
10.1 Receivables for which bad debt provision is collectively assessed on a portfolio basis
Basis or monetary criteria for A receivable that exceeds RMB 1 million (including RMB 1 million)
determining an individually is deemed as an individually significant receivable by the Group.
significant receivable
For receivables that are individually significant, the Group assesses
the receivables individually for impairment. For a financial asset that
Method of determining provision for
is not impaired individually, the Group includes the asset in a group of
receivables that are individually
financial assets with similar credit risk characteristics and collectively
significant and for which bad debt
assesses them for impairment. Receivables for which an impairment
provision is individually assessed
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:
21
Name of the Portfolio Accruing Method
Portfolio 1 (Receivables from government, petty cash advanced to
employees, security deposit, and receivables from related parties of the
Other methods
Company and its subsidiaries. Bad debt provision is not recognized for such
receivables since the possibility of incurring bad debt losses is remote.)
Portfolio 2 (mainly includes receivables arising from operating activities Based on percentage of
other than Portfolio 1) accounts balances
10.2.1 Portfolios that the aging schedule of total receivables outstanding is used for bad debt provision:
□Applicable √Not applicable
10.2.2 Portfolios that percentage of total receivables outstanding is used for bad debt provision:
√Applicable □ Not applicable
Provision as a proportion Provision as a proportion of
Name of portfolio of accounts receivable (%) other receivables (%)
Portfolio 2 1% 1%
10.2.3 Portfolios that other method of total receivables outstanding is used for bad debt provision:
□Applicable √Not applicable
10.3 Receivables that are not individually significant but for which bad debt provision is individually assessed:
Reasons for making individual bad 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
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The actual cost of inventories upon delivery is calculated using the weighted average method.
11.3 Basis for determining net realisable value of inventories and provision methods for decline in value of
inventories
At the balance sheet date, inventories are measured at the lower of cost and net realisable value. If the net realisable value
is below the cost of inventories, a provision for decline in value of inventories is made. Net realisable value is the
estimated selling price in the ordinary course of business less the estimated costs of completion, the estimated costs
necessary to make the sale and relevant taxes. Net realisable value is determined on the basis of clear evidence obtained,
and takes into consideration the purposes of holding inventories and effect of post balance sheet events.
Provision for decline in value of inventories is made based on the excess of cost of inventory over its net
realisable value on an item-by-item basis.
After the provision for decline in value of inventories is made, if the circumstances that previously caused
inventories to be written down below cost no longer exist so that the net realisable value of inventories is higher
than their cost, the original provision for decline in value is reversed and the reversal is included in profit or loss
for the period.
11.4 Inventory count system
The perpetual inventory system is maintained for stock system.
12. Long-term equity investments
12.1 Basis for determining joint control and significant influence over investee
Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its
activities. Joint control is the contractually agreed sharing of control over an economic activity, and exists only
when the strategic financial and operating policy decisions relating to the activity require the unanimous consent
of the parties sharing control. Significant influence is the power to participate in the financial and operating policy
decisions of the investee but is not control or joint control over those policies. When determining whether an
investing enterprise is able to exercise control or significant influence over an investee, the effect of potential
voting rights of the investee (for example, warrants and convertible debts) held by the investing enterprises or
other parties that are currently exercisable or convertible shall be considered.
12.2 Determination of investment cost
For a long-term equity investment acquired through a business combination involving enterprises under common
control, the investment cost of the long-term equity investment is the attributable share of the carrying amount of
the shareholders' equity of the acquiree at the date of combination. For a long-term equity investment acquired
through business combination not involving enterprises under common control, the investment cost of the
long-term equity investment is the cost of acquisition. For a long-term equity investment acquired through
business combination not involving enterprises under common control and achieved in stages, the investment cost
of the long-term equity investment is the aggregate of the carrying amount of the equity interest held in the
acquiree prior to the acquisition date and the cost of the additional investment at the acquisition date. The
long-term equity investment acquired otherwise than through a business combination is initially measured at its
cost.
23
Other long-term equity investments acquired through methods other than business combination, shall be recorded
at cost initially. According to CAS No.22 – Financial Instrument Recognition and Measurement, if the investor
can exert significant influence on the investee or implement co-control but not solely-control, the cost of
long-term investment shall be the fair value plus the newly invested cost.
12.3 Subsequent measurement and recognition of profit or loss
12.3.1. Long-term equity investment accounted for using the cost method
For long-term equity investments over which the Group does not have joint control or significant influence and
without quoted prices in an active market and that fair values cannot be reliably measured, the Group accounts for
such long-term equity investments using the cost method. Besides, long-term equity investments in subsidiaries
are accounted for using the cost method in the Company's separate financial statements. A subsidiary is an
investee that is controlled by the Group.
Under the cost method, a long-term equity investment is measured at initial investment cost. Except for cash
dividends or profits already declared but not yet paid that are included in the price or consideration actually paid
upon acquisition of the long-term equity investment, investment income is recognized in the period in accordance
with the attributable share of cash dividends or profit distributions declared by the investee.
12.3.2. Long-term equity investment accounted for using the equity method
The Group accounts for investment in associates and joint ventures using the equity method. An associate is an
entity over which the Group has significant influence and a joint venture is an entity over which the Group
exercises joint control along with other investors.
Under the equity method, where the initial investment cost of a long-term equity investment exceeds the Group's
share of the fair value of the investee's identifiable net assets at the time of acquisition, no adjustment is made to
the initial investment cost. Where the initial investment cost is less than the Group's share of the fair value of the
investee's identifiable net assets at the time of acquisition, the difference is recognized in profit or loss for the
period, and the cost of the long-term equity investment is adjusted accordingly.
Under the equity method, the Group recognizes its share of the net profit or loss of the investee for the period as
investment income or loss for the period. The Group recognizes its share of the investee's net profit or loss based
on the fair value of the investee's individually identifiable assets, etc. at the acquisition date after making
appropriate adjustments to conform with the Group's accounting policies and accounting period. Unrealized
profits or losses resulting from the Group's transactions with its associates and joint ventures are recognized as
investment income or loss to the extent that those attributable to the Group's equity interest are eliminated.
However, unrealized losses resulting from the Group's transactions with its associates and joint ventures which
represent impairment losses on the transferred assets are not eliminated. Changes in owners' equity of the investee
other than net profit or loss are correspondingly adjusted to the carrying amount of the long-term equity
investment, and recognized as other comprehensive income which is included in the capital reserve.
The Group discontinues recognizing its share of net losses of the investee after the carrying amount of the
long-term equity investment together with any long-term interests that in substance form part of its net investment
in the investee is reduced to zero. If the Group has incurred obligations to assume additional losses of the investee,
a provision is recognized according to the expected obligation, and recorded as investment loss for the period.
24
Where net profits are subsequently made by the investee, the Group resumes recognizing its share of those profits
only after its share of the profits exceeds the share of losses previously not recognized.
12.3.3 Disposal of long-term equity investments
On disposal of a long term equity investment, the difference between the proceeds actually received and
receivable and the carrying amount is recognized in profit or loss for the period. For a long-term equity
investment accounted for using the equity method, the amount included in the shareholders' equity attributable to
the percentage interest disposed is transferred to profit or loss for the period.
13. Investment properties
The Group uses the cost model for subsequent measurement of investment property, and adopts a depreciation or
amortization policy for the investment property which is straight-line method.
14、Fixed Asset
14.1 Recognition criteria for fixed assets
Fixed assets are tangible assets that are held for use in the production or supply of goods or services, for rental to
others, or for administrative purposes, and have useful lives of more than one accounting year. A fixed asset is
recognized only when it is probable that economic benefits associated with the asset will flow to the Group and
the cost of the asset can be measured reliably. Fixed assets are initially measured at cost and the effect of any
expected costs of abandoning the asset at the end of its use is considered.
Subsequent expenditures incurred for the fixed asset are included in the cost of the fixed asset and if it is probable
that economic benefits associated with the asset will flow to the Group and the subsequent expenditures can be
measured reliably. Meanwhile the carrying amount of the replaced part is derecognized. Other subsequent
expenditures are recognized in profit or loss in the period in which they are incurred.
14.2 Depreciation of each category of fixed assets
A fixed asset is depreciated over its useful life using the straight-line method since the month subsequent to the
one in which it is ready for intended use. The useful life, estimated net residual value rate and annual depreciation
rate of each category of fixed assets are as follows:
Depreciation period Annual depreciation rate
Category Residual value rate (%)
(years) (%)
Buildings 5-50 5, 10 1.8-19
Port facilities 50 5 1.9
Machinery and equipment 3-20 5, 10 4.5-31.7
Transportation vehicles 3-14 5, 10 6.4-31.7
Fixed asset decorations 2-5 - 20-50
Office and other equipment 3-5 5, 10 18-31.7
15、Construction in process
Construction in progress is measured at its actual costs. The actual costs include various construction expenditures
during the construction period, borrowing costs capitalized before it is ready for intended use and other relevant
25
costs. Construction in progress is not depreciated. Construction in progress is transferred to a fixed asset when it is
ready for its intended use.
16、Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying asset are
capitalized when expenditures for such asset and borrowing costs are incurred and activities relating to the
acquisition, construction or production of the asset that are necessary to prepare the asset for its intended use or
sale have commenced. Capitalization of borrowing costs ceases when the qualifying asset being acquired,
constructed or produced becomes ready for its intended use or sale. If construction or production of assets
qualifying capitalization is interrupted abnormally for a continuous 3-month-or-above period, the capitalization of
borrowing costs should be ceased until the assets resume construction or production. Other borrowing costs are
recognized as an expense in the period in which they are incurred.
Where funds are borrowed under a specific-purpose borrowing, the amount of interest to be capitalized is the actual
interest expense incurred on that borrowing for the period less any bank interest earned from depositing the borrowed
funds before being used on the asset or any investment income on the temporary investment of those funds. Where funds
are borrowed under general-purpose borrowings, the Group determines the amount of interest to be capitalized on such
borrowings by applying a capitalization rate to the weighted average of the excess of cumulative expenditures on the asset
over the amounts of specific-purpose borrowings. The capitalization rate is the weighted average of the interest rates
applicable to the general-purpose borrowings.
During capitalization period, any exchange differences of special loans in foreign currency should be capitalized,
whereas exchange differences of general loans should be recorded in current profits and losses.
17、Intangible assets
17.1 Recognition, useful life and impairment tests
Intangible assets include land use rights, trademarks and software.
An intangible asset is measured initially at cost. When an intangible asset with a finite useful life is available for
use, its original cost less net residual value and any accumulated impairment losses is amortized over its estimated
useful life using the straight-line method. An intangible asset with an indefinite useful life is not amortized. The
amortization method, years of useful life and net residual value are as follows:
Category Amortization method Useful life (year) Net residual value (%)
land use rights Straight-line method 50 -
trademarks Straight-line method 10 -
Software Straight-line method 3-10 -
For an intangible asset with a finite useful life, the Group reviews the useful life and amortization method at the
end of the period, and makes adjustments when necessary.
17.2 Policies of internal expenditure on research and development
For expenditures occur in the research phase, it should be recorded in current profits or losses.
An intangible asset arising from development (or from the development phase of an internal project) shall be recognised if,
and only if, an entity can demonstrate all of the following:
26
(a) the technical feasibility of completing the intangible asset so that it will be available for use or sale.
(b) its intention to complete the intangible asset and use or sell it.
(c) how the intangible asset will generate probable future economic benefits. Among other things, the entity can
demonstrate the existence of a market for the output of the intangible asset or the intangible asset itself or, if it is to be used
internally, the usefulness of the intangible asset.
(d) the availability of adequate technical, financial and other resources to complete the development and to use or sell the
intangible asset.
(e) its ability to measure reliably the expenditure
For expenditures that can’t be classified into research phase or development phase, they should be recorded in current
profits and losses.
18、Long-term assets impairment
The Group assesses at each balance sheet date whether there is any indication that the long-term equity investment,
investment property measured at cost method, fixed assets, construction in progress and intangible assets with a
finite useful life may be impaired. If there is any indication that such assets may be impaired, recoverable amounts
are estimated for such assets. Intangible assets with indefinite useful life and intangible assets not yet available for
use are tested for impairment annually, irrespective of whether there is any indication that the assets may be
impaired.
If it is not practical to estimate the recoverable amount of an individual asset, the recoverable amount of the asset
group to which the asset belongs will be estimated. The recoverable amount of an asset is the higher of its fair
value less costs of disposal and the present value of the future cash flows expected to be derived from the asset.
If the recoverable amount of an asset or an asset group is less than its carrying amount, the deficit is accounted for
as an impairment loss and is recognized in profit or loss for the period.
Goodwill should be tested for impairment at least at the end of each year. For the purpose of impairment testing,
goodwill is considered together with the related assets group(s), i.e., goodwill is reasonably allocated to the related
assets group(s) or each of assets group(s) expected to benefit from the synergies of the combination. An
impairment loss is recognized if the recoverable amount of the assets group or sets of assets groups (including
goodwill) is less than its carrying amount. The impairment loss is firstly allocated to reduce the carrying amount
of any goodwill allocated to such assets group or sets of assets groups, and then to the other assets of the group
pro-rata on the basis of the carrying amount of each asset (other than goodwill) in the group.
Once the impairment loss of such assets is recognized, it is not be reversed in any subsequent period.
19、Employee benefits
19.1 Accounting method for short-term employee benefits
Actually occurred short-term employee benefits are recognized as liabilities, with a corresponding charge to the
profit or loss for the period or in the costs of relevant assets in the accounting period in which employees provide
services to the Group. Staff welfare expenses incurred by the Group are recognized in profit or loss for the
period or the costs of relevant assets based on the actually occurred amounts when it actually occurred.
Non-monetary staff welfare expenses are measured at fair value.
27
Payment made by the Group of social security contributions for employees such as premiums or contributions on
medical insurance, work injury insurance and maternity insurance, etc. and payments of housing funds, as well as
union running costs and employee education costs provided in accordance with relevant requirements, are
calculated according to prescribed bases and percentages in determining the amount of employee benefits and
recognized as relevant liabilities, with a corresponding charge to the profit or loss for the period or the costs of
relevant assets in the accounting period in which employees provide services.
19.2 Accounting method for post-employment benefits
Post-employment benefits are all defined contribution. The contribution payable to the defined contribution plan
is recognized as liabilities, with a corresponding charge to the profit or loss for the period or in the costs of
relevant assets in the accounting period in which employees provide services to the Group.
19.3 Accounting method for termination benefits
When the Group provides termination benefits to employees, employee benefit liabilities are recognized for
termination benefits, with a corresponding charge to the profit or loss for the period at the earlier of: (1) when the
Group cannot unilaterally withdraw the offer of termination benefits because of the termination plan or a
curtailment proposal; and (2) when the Group recognizes costs or expenses related to restructuring that involves
the payment of termination benefits.
20、Provisions
Provision can be recognized when (1) contingent events related obligations is the group's current obligation; (2)
economic interests are expected to flow out from the enterprise; (3) the amount can be measured reliably.
At The balance sheet date, risks of contingent events, uncertainty and time value should be concerned and
determin the amount of provison. For situations where time value makes a significant effect, use NPV as the
estimate value.
If all or part of the payment of provision is expected to be compensated by a third party and the amount of
compensation not exceed the carrying value of provison, then it can be recognized as an asset when it is certain
that the compensation can be received.
21、 Revenue
21.1 Revenue from rendering of services
Revenue from rendering of services is recognized when (1) the amount of revenue can be measured reliably; (2) it
is probable that the associated economic benefits will flow to the enterprise; (3) the stage of completion of the
transaction can be determined reliably; and (4) the associated costs incurred or to be incurred can be measured
reliably. Revenue from rendering of services is recognized using the percentage of completion method at the
balance sheet date. The stage of completion of a transaction for rendering for services is determined based on
services performed to date as a percentage of total services to be performed.
When the outcome of the transaction involving the rendering of services cannot be estimated reliably, revenue is
recognized only to the extent of the costs incurred that will be recoverable, and the costs incurred are recognized
as expenses for the period. When it is not probable that the costs incurred will be recovered, revenue is not
recognized.
28
21.2Revenue from rendering of asset usage right
The revenue is recognized on accrual basis according to related contracts or agreements reached.
21.3 Interest income
The interest income shall be calculated based on the tenure of the Group's monetary funds used by others and the
actual interest rates used.
22、Government grants
22.1 Basis of judgment and accounting methods for assets-related government grant
The Groups' government grant includes special grants for logistics park construction. As the grant relates to the
final formation of assets, this grant is classified as assets-related government grant.
A government grant related to an asset is recognized as deferred income, and evenly amortized to profit or loss
over the useful life of the related asset.
22.2 Basis of judgment and accounting methods for income-related government grant
The Group's government grant includes governmental supporting funds and subsidies for modern logistics
industry. The grant should be classified as income-related government grant.
For a government grant related to income, if the grant is a compensation for related expenses or losses to be
incurred in subsequent periods, it is recognized as deferred income, and recognized in profit or loss over the
periods in which the related costs are recognized. If the grant is a compensation for related expenses or losses
already incurred, it is recognized immediately in profit or loss for the period.
23、Deferred Income Tax Assets/Deferred Income Tax Liabilities
The income tax expenses include current income tax and deferred income tax.
23.1 Current income tax
At the balance sheet date, current income tax liabilities (or assets) for the current and prior periods are measured at
the amount expected to be paid (or recovered) according to the requirements of tax laws.
23.2 Deferred tax assets and deferred tax liabilities
For temporary differences between the carrying amounts of certain assets or liabilities and their tax base, or
between the nil carrying amount of those items that are not recognized as assets or liabilities and their tax base
that can be determined according to tax laws, deferred tax assets and liabilities are recognized using the balance
sheet liability method.
Deferred tax is generally recognized for all temporary differences. Deferred tax assets for deductible temporary
differences are recognized to the extent that it is probable that taxable profits will be available against which the
deductible temporary differences can be utilized. However, for temporary differences associated with the initial
recognition of goodwill and the initial recognition of an asset or liability arising from a transaction (not a business
combination) that affects neither the accounting profit nor taxable profits (or deductible losses) at the time of
transaction, no deferred tax asset or liability is recognized.
29
For deductible losses and tax credits that can be carried forward, deferred tax assets are recognized to the extent
that it is probable that future taxable profits will be available against which the deductible losses and tax credits
can be utilized.
Deferred tax liabilities are recognized for taxable temporary differences associated with investments in
subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the timing of
the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the
foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such
investments and interests are only recognized to the extent that it is probable that there will be taxable profits
against which to utilize the benefits of the temporary differences and they are expected to reverse in the
foreseeable future.
At the balance sheet date, deferred tax assets and liabilities are measured at the tax rates, according to tax laws,
that are expected to apply in the period in which the asset is realized or the liability is settled.
Current and deferred tax expenses or income are recognized in profit or loss for the period, except when they arise
from transactions or events that are directly recognized in other comprehensive income or in shareholders' equity,
in which case they are recognized in other comprehensive income or in shareholders' equity; and when they arise
from business combinations, in which case they adjust the carrying amount of goodwill.
At the balance sheet date, the carrying amount of deferred tax assets is reviewed and reduced if it is no longer
probable that sufficient taxable profits will be available in the future to allow the benefit of deferred tax assets to
be utilized. Such reduction in amount is reversed when it becomes probable that sufficient taxable profits will be
available.
23.3 Income tax offset
When the Group has a legal right to settle on a net basis and intends either to settle on a net basis or to realize the
assets and settle the liabilities simultaneously, current tax assets and current tax liabilities are offset and presented
on a net basis.
When the Group has a legal right to settle current tax assets and liabilities on a net basis, and deferred tax assets
and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable
entity or different taxable entities which intend either to settle current tax assets and liabilities on a net basis or to
realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax
assets or liabilities are expected to be reversed, deferred tax assets and deferred tax liabilities are offset and
presented on a net basis.
24、Operating leases and finance leases
24.1Accounting treatment on operating leases
24.1.1 The Group as lessee under operating leases
Operating lease payments are recognized on a straight-line basis over the term of the relevant lease, and are either
included in the cost of related asset or charged to profit or loss for the period. Initial direct costs incurred are
charged to profit or loss for the period. Contingent rents are charged to profit or loss in the period in which they
are actually incurred.
24.1.2 The Group as lessor under operating leases
30
Rental income from operating leases is recognized in profit or loss on a straight-line basis over the term of the
relevant lease. Initial direct costs with more than an insignificant amount are capitalized when incurred, and are
recognized in profit or loss on the same basis as rental income over the lease term. Other initial direct costs with
an insignificant amount are charged to profit or loss in the period in which they are incurred. Contingent rents are
charged to profit or loss in the period in which they actually arise.
25、Other material accounting policies and accounting estimations
No accounting policies or accounting estimations changes in current period.
VI、TAXES
1、Major categories of taxes and tax rates
Category of tax Basis of tax computation Tax rate
Revenues from water and
electricity supply and
13%, 17%
maintenance service provided by
general taxpayers
Revenues from taxable services
Value-added tax ("VAT") provided by small-scale 3%
taxpayers
Revenues from stack (storage),
loading and unloading, delivery
6%, 11%
and port management services
provided by general taxpayers
Taxable revenue from rendering
Business tax of services, disposal of 3% or 5%
intangible assets or properties
Actual payment for VAT and
City maintenance and construction tax 5% or 7%
business taxes
Actual payment for VAT and
Education surcharge 3%
business taxes
Enterprise income tax Taxable income 25%,16.5%,15%
Urban land use tax Actual occupation of land area RMB1.50- 10.00/square meter
70% to 90% of the original cost
Property tax 1.2% of properties' residual value
of the property or rental income
Entities using different enterprise income tax rate:
Name of entity Enterprise income tax rate
Longquan Baowan 15%
Xindu Baowan 15%
Blogis (Hong Kong) Limited ("Baowan Hong Kong") 16.5%
China Huitong (H.K.) Limited ("China Huitong") 16.5%
31
2、Tax incentives
Pursuant to Urban Land Use Tax Policy on the Logistics Enterprises with Commodity Warehousing Facilities (Cai
Shui [2017] No. 33) issued by the MoF and State Administration of Taxation ("SAT"), from 1 January 2017 to 31
December 2019, the Group as a logistics enterprise, of which land being used for commodity warehousing
facilities (including owner-occupied and rental) should be levied on urban land use tax based 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 enjoy enterprise income tax preferential policies tailored to
enterprises which fits criteria of China West Development Program. From 2014 to 2020, Longquan
Baowan enjoys enterprise income tax preferential rate of 15%.
Pursuant to the second article of Announcement on Implementing Taxation Policies and Issues of
Western Development Region (Cai Shui [2011]No.58), and approved by National Development and
Reform Commission ([2016] No.195), Chengdu Xindu International Logistics Co., Ltd. ("Xindu
Baowan"), subsidiary of the Company which locates in Chengdu, Sichuang Province, is allowed to
enjoy enterprise income tax preferential policies tailored to enterprises which fits criteria of China West
Development Program. From 2016 to 2020, Xindu Baowan enjoys enterprise income tax preferential
rate of 15%.
VII. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
1、Bank and Cash
Currency：RMB Yuan
Item Closing balance Opening Balance
Cash on Hand 16,278.86 17,691.92
Bank Deposit 491,896,852.47 524,591,405.66
Total 491,913,131.33 524,609,097.58
2、 Notes receivables
Categories of notes receivable
Currency：RMB Yuan
Category Closing balance Opening balance
Bank acceptances 1,400,000.00
Total 1,400,000.00
3、 Accounts Receivables
（1）Disclosure of accounts receivable by categories
Currency：RMB Yuan
32
Closing Balance Opening Balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Item
Proportion Proportion Net book value Proportion Proportion Net book value
Amount Amount Amount Amount
(%) (%) (%) (%)
Accounts receivables for 71,534,490.72 100.00% 433,380.48 0.61% 71,101,110.24 44,302,904.98 100.00% 440,100.37 1.00% 43,862,804.61
which bad debt provision has
been assessed by portfolios of
credit risk characteristics
Total 71,534,490.72 100.00% 433,380.48 0.61% 71,101,110.24 44,302,904.98 100.00% 440,100.37 1.00% 43,862,804.61
Accounts receivable that are significant in amount individually and provided for bad debt individually
□Applicable √Not Applicable
In portfolio, accruing bad debt provision accounting to aging analysis of accounts receivable:
□Applicable √ Not Applicable
In portfolio，accruing bad debt provision according to the percentage-of-receivables approach：
√Applicable □Not Applicable
Currency: RMB Yuan
Closing balance
Name of portfolio
Carrying amount Bad debt provision Proportion of provision (%)
Accruing bad debt provision 71,534,490.72 433,380.48 0.61%
according to the
percentage-of-receivables
approach
Total 71,534,490.72 433,380.48 0.61%
（2）Provision made and reversal of Bad debt
RMB 6,719.89 of provision has been reversed.
（3）Top five enterprises of accounts receivables
Currency：RMB Yuan
Percentage of Total
Company Amount Bad debt provision
Receivables (%)
Client 1 4,984,573.52 6.97% 35,421.55
Client 2 4,582,562.71 6.41% 72,270,.01
Client 3 3,727,143.42 5.21% 3,026.34
Client 4 3,726,078.08 5.21%
Client 5 3,579,443.75 5.00% 17,900.32
Total 20,599,801.48 28.80% 128,618.22
33
4、Prepayments
(1) Aging analysis of prepayments is as follows:
Currency：RMB Yuan
Closing balance Opening balance
Aging Amount Proportion (%) Amount Proportion (%)
Within 1 year 2,287,497.64 99.00% 716,387.12 95.77%
1-2 years 600.00 0.03% 3,323.66 0.44%
2-3 years 0.00% 5,849.17 0.78%
More than 3 years 22,504.50 0.97% 22,504.50 3.01%
Total 2,310,602.14 -- 748,064.45 --
5、Interests receivable
(1) Interests receivable by categories
Currency：RMB Yuan
Item Closing balance Opening balance
Fixed deposits 363,407.67 423,404.92
Financing product
Total 363,407.67 423,404.92
6、Other Receivables
（1）Disclosure of other receivables by categories:
Currency：RMB Yuan
Closing Balance Opening Balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Item
Proportion Proporti Net book value Proportion Proporti Net book
Amount Amount
(%) on (%) Amount (%) Amount on (%) value
Other receivables that are
individually significant
and provided for bad debt
individually
Other receivables for 63,906,531.3 100.00% 35,881.3 0.06% 63,870,649. 63,899,488. 100.00% 35,881.3 0.06% 63,863,606.
which bad debt provision 7 9 98 36 9 97
has been assessed by
portfolios of credit risk
characteristics
Other receivables that are
not individually
significant and provided
for bad debt individually
34
63,906,531.3 100.00% 35,881.3 0.06% 63,870,649. 63,899,488. 100.00% 35,881.3 0.06% 63,863,606.
Total
7 9 98 36 9 97
Other receivables that are significant in amount individually and provided for bad debt individually
□Applicable √Not Applicable
In portfolio, accurring bad debt provision accounting to aging analysis of other receivable:
□Applicable √Not Applicable
In portfolio，accruing bad debt provision according to the percentage-of-receivables approach：
√Applicable □Not Applicable
Currency: RMB yuan
Portfolio Carrying amount Bad debt provision Proportion (%)
Accruing bad debt provision according to 63,906,531.37 35,881.39 0.06%
the percentage-of-receivables approach
Total 63,906,531.37 35,881.39 0.06%
（2）Disclosure of other receivables by nature:
Currency: RMB yuan
Nature Closing balance Opening balance
Amount due from operating activities 15,640,245.62 16,231,215.52
Deposits 30,258,018.68 30,899,167.86
Petty cash 1,293,027.15 1,141,493.08
Amount due from related parties 15,398,699.66 15,360,336.60
Others 1,316,540.26 267,275.30
Total 63,906,531.37 63,899,488.36
（3）Top five entities with the largest balances of other receivables
Currency: RMB yuan
Name of entity Nature Closing balance Aging Proportion（%） Bad debt provision
Amount due from 15,333,000.00 Within 1 year 23.99%
Minority shareholder 0.00
related parties
Client 6 Receivables from 12,045,000.00 Over 3 year 18.85%
0.00
government
Client 7 Receivables from 9,010,000.00 1-2year 14.10%
0.00
government
Client 8 Receivables from 5,000,000.00 6 months-1year 7.82%
0.00
government
Client 9 Receivables from 3,000,000.00 2-3year 4.69%
0.00
government
Total -- 44,388,000.00 -- 69.46% 0.00
35
7、Inventory
（1）Categories of inventories
Currency: RMB yuan
Closing Balance Opening Balance
Provision for
Items decline in Provision for
Gross carrying value of Net carrying Gross carrying decline in value Net carrying
amount inventories amount amount of inventories amount
Raw materials 390,476.40 390,476.40 606,805.98 606,805.98
Maintenance 390,736.58 390,736.58 355,049.74 355,049.74
accessories
Total 781,212.98 781,212.98 961,855.72 961,855.72
8、Other Current Assets
Currency: RMB Yuan
Items Closing Balance Opening Balance
Advance payment of taxes and fees, 23,161,678.79 14,424,379.64
pending deduct VAT on purchase
Total 23,161,678.79 14,424,379.64
9、Long-term equity investments
Currency: RMB Yuan
Changes in the current period Closing
Investment balance
Opening Decrease Adjustment Other Announci Closing
Investee income on
balance Increase in in on other equity ng cash Provisi Other balance
recognized provisio
investment investme comprehensi chang dividends on s
by equity n
nt ve income es or profits
method
1、Joint venture
2、Associates
Shenzhen 480,795,224. 9,783,506.1 490,578,730.
Chiwan 35 5 50
Sembawang
Engineering
Co.
Ltd.("CSE")
Shenzhen 737,557.53 -355,958.79 128,262,431.
Chiwan 21
Offshore
36
Petroleum
Engineerin
g Co,. Ltd
("CPEC")
China 120,662,133. 7,600,298.0 381,598.74
Developme 18 3
nt Finance
Co., Ltd.
("CDFC")
Sichuan 2,000,000. 2,000,000.00
Wenxue 00
Baowan
Supply
Chain co.
LTD
602,194,915. 2,000,000. 17,027,845. 621,222,760.
Subtotal
06 00 39 45
602,194,915. 2,000,000. 17,027,845. 621,222,760.
Total
06 00 39 45
10、Investment properties
（1）Investment properties measured at cost
Currency： RMB Yuan
Item Buildings Land use right Construction in progress Total
I. Total original carrying
amount
1.Opening carrying amount 2,041,872,826.71 2,041,872,826.71
2.Increase in the current 191,340,526.40 191,340,526.40
period
(1)Purchase
(2)Transfer from 191,340,526.40 191,340,526.40
Construction in Progress
(3)Increased by Merger
3.Decrease in the current 8,043,311.99 8,043,311.99
period
（1）Disposal
（2）Other transfer 8,043,311.99 8,043,311.99
4. Closing carrying amount 2,225,170,041.12 2,225,170,041.12
II. Total accumulated
depreciation
37
1.Opening carrying amount 435,823,488.64 435,823,488.64
2.Increase in the current 31,642,204.46 31,642,204.46
period
(1) Amount accrued or 31,642,204.46 31,642,204.46
amortized
3.Decrease in the current
period
（1）Disposal
（2）Other transfer
4. Closing carrying amount 467,465,693.10 467,465,693.10
III ． Total Provision for
impairment losses
1.Opening carrying
amount
2.Increase in the current
period
（1）Amount accrued
3. Decrease in the current
period
（1）Disposal
（2）Other transfer
4. Closing carrying
amount
IV. Total net book value of
investment properties
1. Closing net book value 1,757,704,348.02 1,757,704,348.02
2.Openning net book value 1,606,049,338.07 1,606,049,338.07
（2）Investment properties that have not obtained certificates
Currency：RMB Yuan
Item Net book value Reasons for not obtained certificates
344,746,309.47
Buildings Settlement procedures are still in progress
110,185,703.14 Properties are built on leased land from Nanshan Group not obtain
Buildings
the use right certificate of the mentioned land.
11、Fixed assets
（1）Details of fixed assets are as follows:
Currency：RMB Yuan
38
Office and
Machinery and Transportation Fixed assets
Item Buildings Port facilities other Total
equipment vehicles decorations
equipment
I. Total original
carrying
amount
1.Opening 934,353,609.79 46,462,519.33 169,462,689.06 21,601,213.89 13,767,664.19 101,832,702.22 1,287,480,398.
carrying 48
amount
2.Increase in 189,004,068.02 12,998,190.39 470,658.23 4,927,343.57 207,400,260.21
the current
period
(1)Purchase 268,046.64 470,658.23 4,927,343.57 5,666,048.44
(2)Transfer 189,004,068.02 12,730,143.75 201,734,211.77
from
Construction in
Progress
(3)Increase by
Mergering
3.Decrease in 779,796.01 666,004.00 816,158.71 2,261,958.72
the current
period
（1）Disposal 779,796.01 666,004.00 816,158.71 2,261,958.72
4. Closing 1,123,357,677. 46,462,519.33 181,681,083.44 21,405,868.12 13,767,664.19 105,943,887.08 1,492,618,699.
carrying 81 97
amount
II. Total
accumulated
depreciation
1.Opening 187,087,059.71 36,079,112.25 94,223,178.48 15,289,644.32 13,767,664.19 63,937,642.89 410,384,301.84
carrying
amount
2.Increase in 22,292,658.91 454,710.66 6,307,785.91 1,117,502.56 3,109,508.66 33,282,166.70
the current
period
(1) Amount 22,292,658.91 454,710.66 6,307,785.91 1,117,502.56 3,109,508.66 33,282,166.70
accrued or
amortized
3.Decrease in 0.00 732,408.93 632,703.80 798,749.27 2,163,862.00
the current
period
（1）Disposal 0.00 732,408.93 632,703.80 798,749.27 2,163,862.00
4. Closing 209,379,718.62 36,533,822.91 99,798,555.46 15,774,443.08 13,767,664.19 66,248,402.28 441,502,606.54
carrying
39
amount
III ． Total
Provision for
impairment
losses
1.Opening
carrying
amount
2.Increase in
the current
period
（ 1 ） Amount
accrued
3.Decrease in
the current
period
（1）Disposal
4. Closing
carrying
amount
IV. Total net
book value of
investment
properties
1. Closing net 913,977,959.19 9,928,696.42 81,882,527.98 5,631,425.04 0.00 39,695,484.80 1,051,116,093.
book value 43
2.Openning 747,266,550.08 10,383,407.08 75,239,510.58 6,311,569.57 37,895,059.33 877,096,096.64
net book value
（2）Fixed assets that have not obtained certificates
Currency：RMB Yuan
Item Net book value Reasons for not obtained certificates
Buildings 17,763,314.11 Settlement procedures are still in progress
Properties are built on leased land from Nanshan Group not
Buildings 3,708,500.90
obtain the use right certificate of the mentioned land.
12、Construction in progress
（1）Details of construction in progress are as follows:
Currency：RMB Yuan
Closing balance Opening balance
Item Carrying Provision for Net carrying Provision for Net carrying
Carrying amount
amount impairment amount impairment losses amount
40
losses
Bingang Blogis Park 62,030,875.34 62,030,875.34 59,149,313.16 59,149,313.16
Zhenjiang Warehouse 162,582.46 162,582.46 151,999,058.12 151,999,058.12
Blogis Park
Wuxi Blogis Park 125,402.03 125,402.03 157,642.00 157,642.00
Jiaozhou Blogis Park 204,942,027.80 204,942,027.80 172,495,930.90 172,495,930.90
Shenyang Blogis Park 646,090.10 646,090.10 646,090.10 646,090.10
Xi’an Blogis Park 1,279,945.17 1,279,945.17 823,660.36 823,660.36
Xianyang Blogis Park 20,368,572.40 20,368,572.40 2,215,162.70 2,215,162.70
Qingwu Blogis Park 120,000.00 120,000.00 120,000.00 120,000.00
Jiaxing Blogis Park 10,982,756.10 10,982,756.10 44,562,016.70 44,562,016.70
Jiangyin Blogis Park 11,170,396.56 11,170,396.56 70,843.00 70,843.00
Feidong Blogis Park 7,595,764.55 7,595,764.55 292,789.91 292,789.91
Chengdu oil and gas 27,457,555.68 27,457,555.68 6,499,857.37 6,499,857.37
base project
Beijing Konggang 0.00 0.00 145,962,022.82 145,962,022.82
Blogis Park
Ezhou Blogis Park 29,526,301.89 29,526,301.89 518,070.48 518,070.48
Shaoxing Blogis Park 505,702.21 505,702.21 411,154.06 411,154.06
Yangluo Blogis Park 173,223.62 173,223.62 173,223.62 173,223.62
Xipeng Blogis Park 103,820.22 103,820.22 21,962.67 21,962.67
Xitong Blogis Park 9,268,071.02 9,268,071.02 10,000.00 10,000.00
Deqing Blogis Park 21,433,577.00 21,433,577.00
Other miscellaneous 17,225,203.10 17,225,203.10 15,778,166.65 15,778,166.65
constructions
Total 425,117,867.25 425,117,867.25 601,906,964.62 601,906,964.62
41
（2）Details of construction in progress are as follows:
Currency：RMB Yuan
Amount
injected
Amount of Including: Interest
Decreased in as a Source
Opening Increase in the Transferred to Closing Construction accumulated capitalized capitalization
Item Budget amount the current proportion of
balance current period fixed assets balance progress capitalized interest for rate for the
period of budget funds
interest the period period (%)
amount
(%)
Bingang Blogis Park 343,600,000.00 59,149,313.16 2,881,562.18 62,030,875.34 18.05% 18.05% 7,730,707.04 2,078,920.45 5.16%
ZhenjiangWarehouse 362,220,000.00 151,999,058.12 10,307,450.00 87,535,984.32 74,607,941.34 162,582.46 44.81% 44.81%
Blogis Park
Wuxi Blogis Park 361,530,000.00 157,642.00 32,239.97 125,402.03 0.03% 0.03%
Jiaozhou Blogis 274,000,000.00 172,495,930.90 32,446,096.90 204,942,027.80 74.80% 74.80% 3,318,371.91 2,920,363.67 4.35%
Park
Shenyang Blogis 433,240,000.00 646,090.10 646,090.10 0.15% 0.15%
Park
Xi’an Blogis Park 448,120,000.00 823,660.36 456,284.81 1,279,945.17 0.29% 0.29%
Xianyang Blogis 549,780,000.00 2,215,162.70 18,153,409.70 20,368,572.40 3.70% 3.70%
Park
Qingwu Blogis Park 279,060,000.00 120,000.00 120,000.00
Yangluo Blogis Park 163,980,000.00 173,223.62 173,223.62
Jiaxing Blogis Park 193,690,000.00 44,562,016.70 17,624,529.25 18,808,585.48 32,395,204.37 10,982,756.10 32.11% 32.11% 203,880.33 203,880.33 4.75%
Jiangyin Blogis Park 267,280,000.00 70,843.00 11,099,553.56 11,170,396.56 4.18% 4.18%
Feidong Blogis Park 228,530,000.00 292,789.91 7,302,974.64 7,595,764.55 3.32% 3.32%
Chengdu oil and gas 820,000,000.00 6,499,857.37 20,957,698.31 27,457,555.68 3.35% 3.35%
base project
42
Beijing Konggang 35,110,000.00 145,962,022.82 12,914,884.76 82,493,453.63 76,383,453.95 100.00% 100.00% 1,260,729.17 554,166.67 4.75%
Blogis Park
Ezhou Blogis Park 525,000,000.00 518,070.48 29,008,231.41 29,526,301.89 5.62% 5.62%
Shaoxing Blogis 356,000,000.00 411,154.06 94,548.15 505,702.21 0.14% 0.14%
Park
Xipeng Blogis Park 375,000,000.00 21,962.67 81,857.55 103,820.22 0.03% 0.03%
Xiting Blogis Park 213,000,000.00 10,000.00 9,258,071.02 9,268,071.02 4.35% 4.35%
Deqing Blogis Park 190,000,000.00 21,433,577.00 21,433,577.00 11.28% 11.28%
Other miscellaneous 15,778,166.65 17,955,383.56 16,508,347.11 17,225,203.10 Not
constructions applicable
Total 6,419,140,000.00 601,906,964.62 211,976,112.80 188,870,263.40 199,894,946.77 425,117,867.25 -- -- 12,513,688.45 5,757,331.12 --
43
13. Disposal of Fixed Assets
Currency： RMB Yuan
Item Closing Balance Opening Balance
Disposal 15,835.78
Total 15,835.78
14. Intangible Assets
（1）Details of intangible assets
Currency： RMB Yuan
Item Land use rights patent rights Non-Patents Trademarks Software Total
I. Total original carrying
amount
1.Opening carrying
2,733,015,122.16 439,046.42 3,098,409.44 2,736,552,578.02
amount
2.Increase in the
85,512,605.13 7,523,681.81 93,036,286.94
current period
(1) Purchase 85,512,605.13 7,523,681.81 93,036,286.94
(2) Internal research and
development
(3) Increase by
Mergering
3. Decrease in the
current period
(1) Disposal
4.Closing carrying 2,818,527,727.29 439,046.42 10,622,091.25 2,829,588,864.96
amount
II. Total accumulated
amortization
1.Opening carrying
489,397,565.17 244,910.09 1,698,446.41 491,340,921.67
amount
2.Increase in the
30,886,902.88 11,687.34 176,144.72 31,074,734.94
current period
(1) Amortization 30,886,902.88 11,687.34 176,144.72 31,074,734.94
accrued
3.Decrease in the
current period
(1) Disposal
4.Closing carrying
520,284,468.05 256,597.43 1,874,591.13 522,415,656.61
amount
III．Total Provision for
impairment losses
1.Opening carrying
amount
2.Increase in the
current period
(1) Amount accrued
3.Decrease in the
current period
44
(1) Disposal
4.Closing carrying
amount
IV. Total net book value
1. Closing net book
2,298,243,259.24 182,448.99 8,747,500.12 2,307,173,208.35
value
2.Openning net
2,243,617,556.99 194,136.33 1,399,963.03 2,245,211,656.35
book value
（2）Intangible assets that have not obtained certificates
Currency: RMB Yuan
Item Net book value Reasons for not obtained certificates
259,820,153.90
Land use rights Note 1
7,342,445.28
Land use rights Note 2
Note 1: Land use right and dock use right are assets leased from Nanshan Group, the controlling shareholder of
the Company. In 1984, Nanshan Group contributed the land use right and dock use right for 25 years as the
investment capital to the Company. The term of the use rights expired on 15 July 2009. On 18 July 2006, the
Company and Nanshan Group entered intoAgreement on Land Use, which specifies that the Company can
continue to lease the land and dock by means of operating lease after the expiration. The lease term is 25 years
that starts from 15 July 2009 and ends on14 July 2034. The Company has paid off all the rentals in a lump sum.
As at 30 June 2017 Nanshan Group has not obtained the use right certificate of the above mentioned land and
dock.
Note 2: Use right of the eastern land is an asset leased from Nanshan Group, the controlling shareholder of the
Company, by means of operating lease in 1997. The lease term is 25 years from 1 August 1997 to 31 July 2022.
The Company has paid off all the rentals in a lump sum. Given that Nanshan Group has not obtained the use right
certificateof the mentioned land, in addition to the guarantee of the Company's legal use right on the land,
Nanshan Group entered into an Agreementon Immunity from Liabilities Caused by the Land Use with the
Company on 18 July 1997, agreeing to compensate the Company for any losses, expenditures and liabilities
associated with the leased land. As at 30 June 2017 Nanshan Group has not obtained use right certificate of the
above mentioned land and dock.
15、Development Expenditure
Opening Closing
Item Increase in the current period Decrease in the current period
Balance Balance
Warehouse
management 920,050.29 656,587.14 937,350.09 639,287.34
system
SAP software 410,624.13 1,033,840.38 1,444,464.51
Total 1,330,674.42 1,690,427.52 937,350.09 2,083,751.85
45
16. Goodwill
Acquired entities
Opening Closing
or events that Increase in the current period Decrease in the current period
Balance Balance
cause goodwill
Tianjin Haier
Management co. 11,133,118.55 11,133,118.55
LTD
Total 11,133,118.55 11,133,118.55
17、Deferred Tax Assets and Deferred Tax Liabilities
（1）Deferred tax assets that are not offset
Currency: RMB Yuan
Closing Balance Opening Balance
Item Deductible temporary Deductible temporary
Deferred tax assets Deferred tax assets
differences differences
Provision for impairment 184,053.76 46,013.44 233,708.00 45,201.65
losses of assets
Deductible losses 125,324,634.08 31,331,158.52 97,090,341.05 24,272,585.27
Impairment in 29,181,977.84 7,295,494.46 29,181,977.84 7,295,494.46
revaluation of acquired
entities not under
common control
Total 154,690,665.68 38,672,666.42 126,506,026.89 31,613,281.38
（2）Deferred tax liabilities that are not offset
Closing Balance Opening Balance
Item Taxable temporary Taxable temporary
Deferred tax liabilities Deferred tax liabilities
differences differences
Appreciation in 61,437,303.56 15,359,325.89 62,066,365.68 15,516,591.42
revaluation of acquired
entities not under
common control
Total 61,437,303.56 15,359,325.89 62,066,365.68 15,516,591.42
（3）Deferred tax assets and deferred tax liabilities that are presented at net value after offsetting
Currency: RMB Yuan
Closing balance of Opening balance of
Offsetting amounts at Offsetting amounts at
Item deferred tax assets or deferred tax assets or
closing date opening date
deferred tax liabilities deferred tax liabilities
46
after offsetting after offsetting
Deferred tax assets -7,295,494.46 31,377,171.96 -7,295,494.46 24,317,786.92
Deferred tax liabilities 7,295,494.46 22,654,820.35 7,295,494.46 22,812,085.88
（4）Details of unrecognized deferred tax assets
Currency: RMB Yuan
Item Closing Balance Opening balance
Deductible temporary difference 290,161.32 290,161.32
Deductible losses 256,116,135.34 217,901,282.72
Total 256,406,296.66 218,191,444.04
（3）Deadline of deductible losses of unrecognized deferred tax assets
Currency: RMB Yuan
Years Closing Balance Opening balance Notes
Deductible losses without 110,890,988.33 92,822,732.48 It refers to the accumulated loss of Baowan
deadline Hong Kong and China Huitong.
831,022.59 831,022.59 It refers to the accumulated loss of the
2019
Company
38,627,080.46 38,627,080.46 It refers to the accumulated loss of the
2020
Company
85,620,447.19 85,620,447.19 It refers to the accumulated loss of the
2021
Company
20,436,758.09 It refers to the accumulated loss of the
2022
Company
Total 256,406,296.66 217,901,282.72 --
18. Other non-current assets
Currency： RMB Yuan
Item Closing Balance Opening Balance
Payments for assets (note 1) 610,136,328.02 567,480,000.00
Prepayments for land use rights (note 2) 441,212,200.70 311,733,581.18
Refundable deposits for land use rights (note 26,115,124.80 38,954,624.80
3)
Prepayments for software installation (note 4) 6,690,456.61
Others 5,970,923.65 6,049,099.01
Total 1,083,434,577.17 930,907,761.60
47
Note 1: Closing balance represents assets prepayments by Baowan Logistics Holdings Co., Ltd. ("Baowan Holdings"), subsidiary of
the Company.
Note 2: Closing balance represents Prepayments for land use rights by Yangluo Baowan, Xianyang Baowan, Xipeng Baowan,
Changsha Yuhua Baowan Logistics Co., Ltd ("Yuhua Baowan"), Ningbo Baowan International Logistics Co., Ltd. ("Ningbo
Baowan")，Chongqing Luohuang Baowan International Logistics Co., Ltd.("Luohuang Baowan"), Changsha Wangcheng Baowan
Logistics Co., Ltd ("Wangcheng Baowan")，Wuhan Qingshan Baowan Logistics Co., Ltd ("QingshanBaowan")，subsidiaries of the
Company.
Note 3: Closing balance represents refundable deposits for land use rights paid by Jiaxing Baowan, Jiaxing Supply Chain,Yuyao
Baowan Logistics Co., Ltd. ("Yuyao Baowan"), Jiashan Baowan Logistics Co., Ltd ("Jiashan Baowan"), subsidiaries of the
Company.
Note 4: Closing balance represents prepayments for software installation by Kunshan Baowan International Logistics Co., Ltd
("Kunshan Baowan") , subsidiary of the Company.
19. Short-term Borrowings
（1）Classification of short-term borrowings
Currency： RMB Yuan
Item Closing Balance Opening Balance
Guaranteed borrowings 644,000,000.00 50,000,000.00
Credit borrowings 930,000,000.00 800,000,000.00
Total 1,574,000,000.00 850,000,000.00
20、Notes payable
Currency： RMB Yuan
Item Closing Balance Opening Balance
Trade acceptance 35,891,264.20 16,200,019.20
Total 35,891,264.20 16,200,019.20
The amount of unpaid mature notes is 0.
21、Accounts Payable
（1）Details of accounts payable are as follows:
Currency: RMB Yuan
Item Closing balance Opening balance
Rents 12,757,364.46 7,274,685.37
Allowances for repairs and maintenance 2,328,997.63 1,899,243.70
Service charges 852,171.99 727,374.70
Others 1,599,201.26
Total 15,938,534.08 11,500,505.03
48
22、Receipts in advance
（1）Details of receipts in advance are as follows:
Currency: RMB Yuan
Item Closing balance Opening balance
Storage service fees collected in advance 6,694,000.98 8,998,939.24
Others 55,008.00 186,125.80
Total 6,749,008.98 9,185,065.04
23、Employee benefits payable
（1）Details of employee benefits payable are as follows
Currency: RMB Yuan
Opening Increase in the Decrease in the
Item balance current period current period Closing balance
21,147,173.58 47,998,257.05 51,682,825.06 17,462,605.58
I. Short-term compensation
15,744.32 3,449,812.74 3,450,775.30 14,781.76
II. Post-employment benefits-defined
contribution plans
199,806.06 199,806.06
III. Termination benefits
IV. Other welfare due within one year
21,162,917.90 51,647,875.85 55,333,406.42 17,477,387.34
Total
（2）Short-term Compensation
Currency: RMB Yuan
Opening Increase in the Decrease in the
Item Closing balance
balance current period current period
I. Wages or salaries, bonuses, 20,628,167.59 42,727,455.54 46,552,086.76 16,803,536.38
allowances and subsidies
II. Staff welfare 1,145,746.45 1,035,946.43 109,800.02
III. Social security contributions 7,697.14 1,562,352.17 1,562,783.58 7,265.73
Including: Medical insurance 5,957.83 1,304,975.89 1,305,283.67 5,650.05
Work-related injury insurance 1,326.76 138,316.62 138,432.92 1,210.46
Birth insurance 412.55 119,059.66 119,066.99 405.22
49
IV. Housing funds 667.00 1,818,332.36 1,818,332.36 667.00
V. Expenditure for trade union and 510,641.85 744,370.53 713,675.93 541,336.45
employee training
Total 21,147,173.58 47,998,257.05 51,682,825.06 17,462,605.58
（3） Post-employment benefits- defined contribution plans
Currency: RMB Yuan
Increase in the Decrease in the
Item Opening balance Closing balance
current period current period
I. Basic endowment insurance 14,983.68 3,361,245.47 3,361,852.61 14,376.54
II. Unemployment insurance 760.64 88,567.27 88,922.69 405.22
Total 15,744.32 3,449,812.74 3,450,775.30 14,781.76
Note: The Group participates in the social security contributions and the unemployment insurance plan established
by government institutions as required. According to such plans, the Company and its subsidiaries contributes
amounts according to local supervision agency's requirement respectively to such plans. The Group does not
undertake further payment obligations other than the above monthly contributions. Corresponding expenses are
charged to profit or loss for the period or costs of the related assets when incurred.
Ended 30 Jun 2017 the Group had contributed RMB 3,361,245.47 and RMB 88,567.27 respectively to the social
security contributions and the unemployment insurance plan(2016: RMB 6,780,550.96 and RMB 197,928.73).
As at 30 Jun 2017, the Group still have outstanding contributions of RMB 14,376.54 and RMB 405.22 (31
December 2016: RMB 14,983.68 and RMB 760.64) to be paid to the social security contributions and the
unemployment insurance plan. The related outstanding contributions have been made after the reporting period.
24、Taxes payable
Currency: RMB Yuan
Items Closing Balance Opening Balance
Value Added Tax 3,973,826.95 3,614,107.55
Corporate Income Tax 14,430,906.40 13,910,953.26
Individual Income Tax 244,102.99 226,153.20
Urban Maintenance & Construction Tax 183,612.85 235,320.44
Land-use Tax 4,102,808.81 5,146,891.43
Property Tax 4,536,533.67 6,020,749.61
Educational Surcharges 126,979.57 172,408.79
Others 952,475.11 781,150.17
Total 28,551,246.35 30,107,734.45
50
25、Interest Payable
Currency: RMB Yuan
Items Closing Balance Opening Balance
Long-term borrowing interest 772,235.57 3,072,061.82
Corporate bond interest 16,839,066.65 20,784,237.18
Total 17,611,302.22 23,856,299.00
26、Other Payables
（1）Details of other payables are as follows:
Currency: RMB Yuan
Item Closing balance Opening balance
Construction costs 309,620,658.18 322,429,515.38
Deposits 67,029,163.52 68,669,191.97
Others 77,295,058.43 46,423,717.26
Total 453,944,880.13 437,522,424.61
（2）Significant other payables over 1 year
Item Closing balance Reason for not repay or carry over
Supplier 1 12,985,141.62 Construction balance not reaching payment terms
Supplier 2 10,257,045.00 Construction balance not reaching payment terms
Supplier 3 10,133,058.12 Construction balance not reaching payment terms
Supplier 4 9,154,447.91 Construction balance not reaching payment terms
Supplier 5 9,003,726.41 Construction balance not reaching payment terms
Supplier 6 3,999,342.09 Construction balance not reaching payment terms
Supplier 7 3,438,677.46 Construction balance not reaching payment terms
Customer 16 3,330,000.00 Storage deposit not reaching payment terms
Customer 17 2,757,869.00 Construction balance not reaching payment terms
Supplier 8 2,734,107.20 Construction balance not reaching payment terms
Customer 18 2,450,921.40 Construction balance not reaching payment terms
Supplier 9 1,612,000.25 Construction balance not reaching payment terms
Customer 19 1,283,010.00 Construction balance not reaching payment terms
Customer 20 1,264,991.60 Construction balance not reaching payment terms
Supplier 10 1,185,738.38 Construction balance not reaching payment terms
Customer 21 1,120,530.00 Construction balance not reaching payment terms
Customer 22 1,102,930.10 Construction balance not reaching payment terms
Customer 23 1,015,461.58 Construction balance not reaching payment terms
Customer 24 1,000,000.00 Construction balance not reaching payment terms
Total 79,828,998.12 --
51
27、Non-current liabilities due within one year
Currency: RMB Yuan
Items Closing Balance Opening Balance
Long-term loans due within one year 211,349,351.16 211,349,351.16
Bond payable due within one year 400,000,000.00
long-term payable due within one year 27,414,252.24 21,708,627.24
Total 238,763,603.40 633,057,978.40
28、Other current liabilities
Currency: RMB Yuan
Items Closing Balance Opening Balance
Loans borrowed from Nanshan 0.00 564,000,000.00
Group
Total 564,000,000.00
29、Long-term Borrowings
（1）Classification of the long-term borrowings
Currency: RMB Yuan
Items Closing Balance Opening Balance
Guaranteed loan 325,253,194.75 441,572,609.77
Credit loan 839,974,280.70 744,715,490.68
Total 1,165,227,475.45 1,186,288,100.45
30、Bonds payable
（1）Details of bonds payable
Currency: RMB Yuan
Items Closing Balance Opening Balance
Corporate bond 569,382,500.00 568,641,500.00
Total 569,382,500.00 568,641,500.00
（2）Changes in the current period of bonds payable
Currency: RMB Yuan
Issue Premium or Repa
Accrued
Maturit Opening in the discount y for Closing
Item Par value Issue date Issued amount interest for
y term balance curren amortizatio the balance
the period
t n perio
52
period d
15,649,350.0 741,000.00 0.00
Corporat 570,000,000.0 17/12/201 570,000,000.0 568,641,500.0 569,382,500.0
7 years 1
e bond 0 2 0 0 0
15,649,350.0 741,000.00 0.00
Total 570,000,000.0 570,000,000.0 568,641,500.0 569,382,500.0
1
0 0 0 0
31、Account payable special funds
Increase in the Decrease in the Closing balance
Item Opening balance Cause of formation
current period current period
Land repurchase
Land repurchase
payment from
0.00 1,309,524.80 1,309,524.80 from Shenyang
Shenyang
Government
Government
Total 1,309,524.80 1,309,524.80 --
32、Deferred income
Currency: RMB Yuan
Increase in the Decrease in the
Item Opening balance Closing balance Cause of formation
current period current period
49,599,079.39 826,035.84 48,773,043.55 Special subsidy for
Government Subsidy
purchasing fixed assets
Total 49,599,079.39 826,035.84 48,773,043.55 --
Items concerning government subsidy：
Currency: RMB Yuan
Amount
Increase of
recognized in
government Related to assets
Liabilities items Opening balance non-operating Closing balance Liabilities items
subsidy in the or revenue
income in the
current period
current period
Wuhan Blogis 48,249,079.39 788,535.84 47,460,543.55
Related to assets
Park
Guangzhou 1,350,000.00 37,500.00 1,312,500.00
Blogis Park –Lot Related to assets
A Construction
49,599,079.39 826,035.84 48,773,043.55
Total --
53
33、Other non-current liabilities
Currency: RMB Yuan
Item Closing balance Opening balance
Medium and long-term borrowings 1,100,000,000.00 496,000,000.00
Rental received in advance 13,988,969.48 15,018,207.18
Total 1,113,988,969.48 511,018,207.18
34、Share Capital
Currency: RMB Yuan
Changes for Current Period（＋、－）
capitalization
Opening Balance Closing Balance
New Issued Bonus Share of surplus Others Subtotal
reserves
Total Shares 230,600,000.00 230,600,000.00
35、Capital reserve
Currency: RMB Yuan
Increase in the
Item Opening balance Decrease in the period Closing balance
period
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
36、Other comprehensive income
Currency: RMB Yuan
Amount for the current period
Less：Net
amount
included in Post-tax net
other Post-tax net
Opening amount Closing
Item Before-tax comprehensive Less： amount
belonging to
Balance amount for the income in the incom belonging to Balance
parent
current period prior periods e tax minority
company
that is shareholders
owners
transferred to
profit or loss
for the period
II. Net amount included in other
comprehensive income that can be
652,079.14 652,079.14
transferred to profit or loss in the
future
Translation differences of financial
statements denominated in foreign 652,079.14 652,079.14
currencies
Total 652,079.14 652,079.14
54
37、Special reserve
Currency: RMB Yuan
Increase in the Decrease in the
Item Opening balance Closing balance
period period
Production safety fee 6,774,707.73 622,389.29 186,009.27 7,211,087.75
Total 6,774,707.73 622,389.29 186,009.27 7,211,087.75
38、Surplus reserves
Currency: RMB Yuan
Increase in the Decrease in the
Item Opening balance period period Closing balance
Statutory surplus reserve 218,585,153.26 218,585,153.26
Discretionary surplus reserve 100,018,409.16 100,018,409.16
Total 318,603,562.42 318,603,562.42
39、Unappropriated profits
Currency: RMB Yuan
Item Amount for current period Amount for prior period
Before adjustment: Unappropriated profits at the end of prior year 966,064,644.53 965,504,851.33
After adjustment: Unappropriated profits at the beginning of the year 966,064,644.53 965,504,851.33
Add: Net profit attributable to owners of the Company for the period 11,067,703.47 1,918,066.81
Less: Appropriation to statutory surplus reserve
Appropriation to discretionary surplus reserve 1,358,273.61
Dividends paid to ordinary shares
Undistributed profit at the end of the year 977,132,348.00 966,064,644.53
40、Operating income and operating costs
Currency: RMB Yuan
Amount recognized in the current period Amount recognized in the prior period
Item Operating income Operating cost Operating income Operating cost
Principal operating activities 356,576,081.73 156,076,406.18 330,993,998.17 143,269,502.63
Other operating activities 187,817.06 54,290.48
Total 356,763,898.79 156,076,406.18 331,048,288.65 143,269,502.63
41、Business Tax and Surcharges
Currency: RMB Yuan
55
Item Amount incurred in the current period Amount incurred in the prior period
City construction and maintenance tax 1,092,109.68 1,124,525.04
Education surcharges 811,337.99 863,216.39
Property tax 15,344,974.22 12,635,340.98
Land use tax 14,620,829.87 3,556,743.99
Others 790,323.07 687,813.02
Total 32,659,574.83 18,867,639.42
42、Selling expenses
Currency: RMB Yuan
Item Amount incurred in the current period Amount incurred in the prior period
Agency brokerage 252,176.88 917,022.63
Total 252,176.88 917,022.63
43、Administrative Expenses
Currency: RMB Yuan
Item Amount incurred in the current period Amount incurred in the prior period
Payroll 35,863,205.88 30,782,964.25
Asset depreciation 1,979,265.54 2,065,391.20
Asset amortization 12,075,647.47 6,882,181.50
Taxes 5,339,571.17
Business entertainment 1,364,496.99 1,200,941.26
Vehicle expense 905,636.87 824,987.89
Travelling expense 1,573,725.05 1,596,611.26
Others 4,269,268.63 6,652,700.64
Total 58,031,246.43 55,345,349.17
44、Financial Expenses
Currency: RMB Yuan
Item Amount incurred in the current period Amount incurred in the prior period
Interest expenses 99,909,420.44 89,265,690.31
Less: capitalized interest expenses 5,757,331.12 1,826,715.35
Less: interest income 2,365,771.90 2,616,828.72
Exchange differences 2,794.85 309.85
Others 808,696.52 1,540,642.23
Total 90,232,036.89 86,362,478.62
56
45、Impairment loss
Currency: RMB Yuan
Item Amount incurred in the current period Amount incurred in the prior period
Loss from bad debt -6,719.89 17,914.86
Total -6,719.89 17,914.86
46、Investment income
Currency: RMB Yuan
Item Amount recognized in the current period Amount recognized in the prior period
Income from long-term equity investments 17,027,845.39 13,758,166.75
under equity method
Income from bank financing products 1,204,227.53
Total 17,027,845.39 14,962,394.28
47、Non-operating Income
Currency: RMB Yuan
Amount included in
Amount recognized in the Amount recognized in
Item non-recurring profit or loss
current period the prior period
for the period
Total gains on disposal of non-current assets 74,068.43 27,777.65 74,068.43
Including: Gains on disposal of fixed assets 74,068.43 27,777.65 74,068.43
Government grants 1,503,443.61 1,721,474.24 1,503,443.61
Penalty gains 901,028.72 258,640.27 901,028.72
Others 291,093.72 694,956.72 291,093.72
Total 2,769,634.48 2,702,848.88 2,769,634.48
Details of government grants recorded into current profit or loss:
Amount Amount Assets
Whether
Reason for The nature of Whether incurred in incurred in related/
Item Entity affect current
grants grants special grants the current the current Income
profit or loss
period period related
subsidies
from
Financial Income
subsidies investments YES NO 1,384,234.59 1,711,474.24
subsidies related
fits criteria of
local policies
Financial subsidies Income
incentive YES NO 119,209.02 10,000.00
incentive from related
57
investments
fits criteria of
local policies
Total -- -- -- -- -- 1,503,443.61 1,721,474.24 --
48、Non-operating Expenses
Currency: RMB Yuan
Amount included in
Amount incurred in the Amount incurred in the
Item non-recurring profit or loss
current period prior period
for the period
Total losses on disposal of non-current assets 4,086.00 36,978.43 4,086.00
Including: Losses on disposal of fixed assets 4,086.00 36,978.43 4,086.00
Donations 12,000.00 12,000.00
Penalty losses 129,681.49 664,737.28 129,681.49
Others 193,527.95 149,976.31 193,527.95
Total 339,295.44 851,692.02 339,295.44
49、Income Tax Expenses
（1） Details of income tax expenses
Currency: RMB Yuan
Item Amount incurred in the current period Amount incurred in the prior period
Current tax expense 25,019,093.22 26,974,453.88
Deferred tax expense -6,501,398.89 -14,889,137.89
Total 18,517,694.33 12,085,315.99
（2）Reconciliation of income tax expenses to the accounting profit is as follows:
Currency: RMB Yuan
Item Amount for the current period
Accounting profit 38,977,361.90
Income tax expenses calculated at statutory tax rate or applicable tax rate 10,656,352.01
Effect of different tax rates adopted by subsidiaries -1,275,313.63
Effect of adjusting income tax for previous years -86,564.24
Effect of tax-free income -503,248.81
Effect of expenses that are not deductible for tax purposes 55,646.99
Effect of deductible temporary differences and deductible losses from 9,670,822.01
unrecognized deferred tax assets in the current period
Income tax expense 18,517,694.33
58
50、Notes to items in the cash flow statement
（1）Other cash receipts relating to operating activities
Currency: RMB Yuan
Item Amount for the current period Amount for the prior period
Interest income 2,425,455.29 2,109,786.13
Government grants 119,209.02 543,658.40
Others 13,364,206.32 14,307,898.24
Total 15,908,870.63 16,961,342.77
（2）Other cash payments relating to operating activities
Currency: RMB Yuan
Item Amount for the current period Amount for the prior period
Payments for administrative expense 13,504,499.79 16,236,662.53
Payments for deposits 6,403,128.06 2,498,042.94
Others 7,043,757.79 2,625,108.65
Total 26,951,385.64 21,359,814.12
（3）Other cash receipts relating to investing activities
Currency: RMB Yuan
Item Amount for the current period Amount for the prior period
Principal and investment income 257,235,570.00
from financing products
Others 2,429,524.80 354,780.00
Total 2,429,524.80 257,590,350.00
（4）Other cash payments relating to investing activities
Currency: RMB Yuan
Item Amount for the current period Amount for the prior period
Purchase of financing products 45,000,000.00
Others 42,144.00
Total 42,144.00 45,000,000.00
（5）Other cash receipts relating to financing activities
Currency: RMB Yuan
Item Amount for the current period Amount for the prior period
Borrowing from Nanshan Group 1,204,000,000.00 294,000,000.00
59
Total 1,204,000,000.00 294,000,000.00
（6）Other cash payments relating to financing activities
Currency: RMB Yuan
Item Amount for the current period Amount for the prior period
Payments for commission of medium 1,200,000.00 1,200,000.00
term note
Payments for the interest and principal 1,179,203,299.09 273,580,492.48
from Nanshan group loans
Others 504,856.08 114,455.93
Total 1,180,908,155.17 274,894,948.41
51、Supplementary information for the cash flow statement
（1）Details of Supplementary information for the cash flow statement
Currency: RMB Yuan
Supplementary information Current period Prior period
1. Reconciliation of net profit to cash flows from
-- --
operating activities:
Net profit 20,459,667.57 30,996,616.47
Add：Provision for the impairment of assets -6,719.89 17,914.86
Depreciation of fixed assets, depletion of oil & gas assets 65,164,186.33 58,108,135.15
and productive biologic material depreciation
Amortisation of intangible assets 34,529,198.86 22,752,336.51
Losses on disposal of fixed assets, intangible assets and -69,982.43 9,200.78
other long-term assets(‘-’ for gain)
Financial expenses(gains are indicated by "-") 91,862,447.77 86,786,898.42
Losses arising from investments (gains are indicated by "-") -17,027,845.39 -14,962,394.28
Decrease in deferred tax assets (increase is indicated by "-") -7,059,385.02 -10,440,147.95
Increase in deferred tax liabilities -157,265.53
Decrease in inventories (increase is indicated by "-") 180,642.74 66,958.38
Decrease in receivables from operating activities (increase -29,954,924.87 -23,741,607.16
is indicated by "-")
Increase in payables from operating activities (decrease is -16,762,276.05 1,516,188.62
indicated by "-")
Net cash flow from operating activities 141,157,744.09 151,110,099.80
2 ． Significant investment and financing activities not
-- --
involving receipts and disbursements:
3．Net changes in cash and cash equivalents: -- --
Closing balance of cash 491,913,131.33 647,599,268.21
60
Less: Opening balance of cash 524,609,097.58 321,121,926.73
Net increase in cash and cash equivalents -32,695,966.25 326,477,341.48
（2）Composition of cash and cash equivalents
Currency: RMB Yuan
Item Closing balance Opening balance
I. Cash 491,913,131.33 524,609,097.58
Including: Cash on hand 16,278.86 17,691.92
Bank deposit available for immediate 491,896,852.47 524,591,405.66
payment
III. Closing balance of cash and cash equivalents 491,913,131.33 524,609,097.58
52、Foreign currency monetary items
Currency: RMB Yuan
Closing balance in Exchange rate Closing balance translate in
Item
foreign currency RMB
Bank and Cash -- -- 4,950,122.33
Including: United State Dollar 339,675.22 2,356,327.00
Euro 380.00 2,776.58
Hong Kong Dollar 2,896,611.23 2,591,018.75
VIII、Changes of Consolidated Financial Statement Scope
1、 Changes of consolidated financial statement scope for other reasons
Provide details of any changes of consolidated financial statement scope for other reasons.
During the first half year of 2017, the following companies were found.
Currency: RMB Yuan
Entities Net assets at closing balance
Hubei Baowan Logistics Investment Co. Ltd 30,088,541.21
Wuhan Qingshan Baowan Logistics Co., Ltd 30,035,720.73
Zhangzhou Baowan Logistics Co., Ltd.
During the first half year of 2017, the following company was cancelled
Currency: RMB Yuan
Entities Net assets at closing balance
Changzhou Baowan Logistics Co., Ltd. -1,413.00
61
IX、Equity in other entities
1、Equity in subsidiaries
（1）Group Composition
Proportion of holding
Name of equity (%)
Business premise Registered place Business nature Acquired method
subsidiary
Direct Indirect
Shenzhen,Guang Shenzhen,Guang
Blogis Holdings Investment 77.36% Set-up
dong Province dong Province
Shanghai Blogis Shanghai Shanghai Logistics Service 100.00% Set-up
Guangzhou , Guangzhou , Logistics Service
Guangzhou
Guangdong Guangdong 100.00% Set-up
Blogis
Province Province
Kunshan, Jiangsu Kunshan, Jiangsu Logistics Service
Kunshan Blogis 100.00% Set-up
Province Province
Tianjin Blogis Tianjin Tianjin Logistics Service 100.00% Set-up
Langfang, Hebei Langfang, Hebei Logistics Service
Langfang Blogis 100.00% Set-up
Province Province
Chengdu, Chengdu, Logistics Service
Longquan Blogis 100.00% Set-up
Sichuan Province Sichuan Province
Chengdu, Chengdu, Logistics Service
Xindu Blogis 100.00% Set-up
Sichuan Province Sichuan Province
Nanjing, Jiangsu Nanjing, Jiangsu Logistics Service
Nanjing Blogis 100.00% Set-up
Province Province
Bingang Blogis Tianjin Tianjin Logistics Service 100.00% Set-up
Nantong, Jiangsu Nantong, Jiangsu Logistics Service
Nantong Blogis 100.00% Set-up
Province Province
Wuhan, Hubei Wuhan, Hubei Logistics Service Set-up
Wuhan Blogis 100.00%
Province Province
Qingwu Blogis Tianjin Tianjin Logistics Service 100.00% Set-up
Shenyang ,Liaoni Shenyang ,Liaoni Logistics Service Set-up
Shenyang Blogis 100.00%
ng Province ng Province
Wuhan, Hubei Wuhan, Hubei Logistics Service Set-up
Yangluo Blogis 100.00%
Province Province
Hefei, Anhui Hefei, Anhui Logistics Service Set-up
Feidong Blogis 100.00%
Province Province
Xi’an, Shanxi Xi’an, Shanxi Logistics Service Set-up
Xi’an Blogis 100.00%
Province Province
Xianyang, Shanxi Xianyang, Shanxi Logistics Service Set-up
Xianyang Blogis 100.00%
Province Province
Hong Kong Hong Kong Set-up
Blogis Hongkong Investment 100.00%
Special Special
62
Administrative Administrative
Region Region
Qingdao, Qingdao, Set-up
Jiaozhou Blogis Shandong Shandong Logistics Service 100.00%
Province Province
Changzhou Changzhou, Changzhou, Set-up
Logistics Service 100.00%
Blogis Jiangsu Province Jiangsu Province
Jiaxing, Zhejiang Jiaxing, Zhejiang Set-up
Jaixing Blogis Logistics Service 100.00%
Province Province
Jiangyin, Jiangsu Jiangyin, Jiangsu Set-up
Jiangyin Blogis Logistics Service 100.00%
Province Province
Shenzhen, Shenzhen, Business combination
Shenzhen Blogis Guangdong Guangdong Logistics Service 100.00% involving enterprises
Province Province under common control
Business combination
Mingjiang Blogis Shanghai Shanghai Logistics Service 100.00% involving enterprises
under common control
Hong Kong Hong Kong
Business combination
Special Special
China Huitong Investment 100.00% involving enterprises
Administrative Administrative
under common control
Region Region
Business combination
Wuxi, Jiangsu Wuxi, Jiangsu
Wuxi Blogis Logistics Service 100.00% involving enterprises
Province Province
under common control
Business combination
Zhenjiang Zhenjiang, Zhenjiang,
Logistics Service 100.00% involving enterprises
Warehouse Jiangsu Province Jiangsu Province
under common control
Chengdu Oil&gas Chengdu, Chengdu, The development of
100.00% Set-up
Base Sichuan Province Sichuan Province new energy
Shaoxing,Zhejian Shaoxing,Zhejian Logistics Service Set-up
Shaoxing Blogis 100.00%
g province g province
Nanjiang,Jiangsu Nanjiang,Jiangsu Logistics Service Set-up
Jiangsu Blogis 100.00%
Province Province
Xipeng Blogis Chongqing Chongqing Logistics Service 100.00% Set-up
Zhengzhou, Zhengzhou, Logistics Service Set-up
Zhengzhou Bsea 80.00%
Henan province Henan province
Ezhou ,Hubei Ezhou ,Hubei Logistics Service Set-up
E’zhou Blogis 100.00%
province province
Nantong, Jiangsu Nantong, Jiangsu Logistics Service Set-up
Xintong Blogis 100.00%
Province Province
Jiashan, Zhejiang Jiashan, Zhejiang Logistics Service Set-up
Jiashan Blogis 100.00%
province province
63
Beijing Logistics Service 100.00% Business combination
Konggang Beijing Beijing involving enterprises not
Baowan under common control
Yuyao Baowan Zhejiang, Yuyao Zhejiang, Yuyao Logistics Service 100.00% Set-up
Xiaogan Baowan Hubei Xiaogan Hubei Xiaogan Logistics Service 100.00% Set-up
Xinjin Baowan Sichuan Chengdu Sichuan Chengdu Logistics Service 100.00% Set-up
Sanshui Baowan Guangdong Guangdong Logistics Service 100.00% Set-up
Foshan Foshan
Guangdong Guangdong Logistics Service 100.00% Set-up
Nanhai Baowan
Foshan Foshan
Yuhua Baowan Hunan Changsha Hunan Changsha Logistics Service 100.00% Set-up
Deqing Baowan Zhejiang Deqing Zhejiang Deqing Logistics Service 100.00% Set-up
Wangcheng Logistics Service 100.00% Set-up
Hunan Changsha Hunan Changsha
Baowan
Luohuang Logistics Service 100.00% Set-up
Chongqing Chongqing
Baowan
Logistics Service 100.00% Business combination
Tianjin Haier Tianjin Tianjin involving enterprises not
under common control
Jiaxing Supply Logistics Service 90.00% Set-up
Zhejiang Jiaxing Zhejiang Jiaxing
Chain
Ningbo Baowan Zhejiang Ningbo Zhejiang Ningbo Logistics Service 100.00% Set-up
Dianzhong Logistics Service 100.00% Set-up
Yunnan Kunming Yunnan Kunming
Baowan
Hubei Baowan Hubei Wuhan Hubei Wuhan Logistics Service 100.00% Set-up
Qingshan Logistics Service 100.00% Set-up
Hubei Wuhan Hubei Wuhan
Baowan
（2）Significant non-wholly owned subsidiary:
Currency： RMB Yuan
Profit and loss
Dividends declared to
Proportion of minority attributable to minority Closing Balance of
Name of Subsidiary minority shareholders in
shareholders shareholders in the minority shareholders
the current period
current period
Blogis Holdings 22.64% 9,390,443.24 866,553,903.14
64
（3）Financial information of significant non-wholly owned subsidiary:
Currency： RMB Yuan
Closing Balance Opening Balance
Name of
Non-current Current Non-current Total of Non-current Current Non-current Total of
Subsidiary Current Assets Total of Assets Current Assets Total of Assets
Assets Liabilities Liabilities Liabilities Assets Liabilities Liabilities Liabilities
Blogis 646,854,171.23 6,144,221,942.97 6,791,076,114.20 1,561,226,372.97 1,480,677,976.44 3,041,904,349.41 622,065,828.35 5,775,904,816.25 6,397,970,644.60 1,554,202,443.71 1,135,874,963.68 2,690,077,407.39
Holdings
（ Consolida
tion）
Currency： RMB Yuan
Amount incurred in the current period Amount incurred in the prior period
Name of
Subsidiary Comprehensive Cash Flows from Comprehensive Cash Flows from
Operating Revenue Net Profits Operating Revenue Net Profits
Income Operating Activities Income Operating Activities
Blogis Holdings 278,278,857.43 41,689,355.73 41,160,933.08 137,644,957.28 254,035,417.18 48,110,260.58 48,110,260.58 153,540,706.42
（Consolidation）
65
2、Equity in the joint venture arrangement and Associated Enterprises
（1）Significant joint venture arrangement and Associated Enterprises
Proportion of holding equity (%) Accounting
Company Business premise Registered place Business nature
Direct Indirect method
Shenzhen Shenzhen Offshore oil
CSE engineering 32.00% Equity method
construction
Shenzhen Shenzhen Capital
CDFC 20.00% Equity method
management
Shenzhen Shenzhen Petrochemical
CPEC equipment 20.00% Equity method
manufacturing
Sichuan Sichuan Supply chain
Sichuan Chengdu Chengdu management
40.00% Equity method
Wenxuan services and
consulting
（2）Financial information in significant Associated Enterprises
Currency: RMB Yuan
Closing balance/ Amount for the current period Opening balance/ Amount for the prior period
Sichuan
CSE CDFC CPEC CSE CDFC CPEC
Wenxuan
Current Assets 4,352,320,033. 5,683,218,806.
502,048,923.33 12,687,986.52 5,000,000.00 475,445,258.66 14,761,345.19
03 86
Non-current 1,158,549,778. 4,361,172,964. 1,116,355,891.
2,174,920.71 9,238,857.55 3,099,232.49
assets 33 44 44
Total asset 1,660,598,701. 8,713,492,997. 1,591,801,150. 5,692,457,664.
14,862,907.23 5,000,000.00 17,860,577.68
66 47 10 41
Current 3,719,860,808. 5,089,049,191.
140,231,265.09 13,208,589.65 102,007,170.26 14,426,466.13
liabilities 39 91
Non-current
97,806.58
liabilities
Total liability 3,719,860,808. 5,089,146,998.
140,231,265.09 13,208,589.65 102,007,170.26 14,426,466.13
39 49
Net assets
share
calculated
490,578,728.04 128,262,431.21 381,598.76 2,000,000.00 480,795,224.35 120,662,133.18 737,557.53
according to
proportion of
shareholding
Net book value
of the equity
490,578,728.04 128,262,431.21 381,598.76 2,000,000.00 480,795,224.35 120,662,133.18 737,557.53
investment in
associates
Income 405,070,204.25 52,563,411.37 1,529,670.70 0.00 223,381,557.46 44,319,651.24 14,208,275.85
Net profit 30,573,456.73 38,001,490.13 -1,779,793.97 0.00 34,166,910.65 19,994,696.19 -5,870,919.49
Total
comprehensive 30,573,456.73 38,001,490.13 -1,779,793.97 34,166,910.65 19,994,696.19 -5,870,919.49
income
Dividend
received from
associates in 12,908,798.55
the current
period
66
X、RELATED PARTY RELATIONSHIPS AND TRANSACTIONS
1、Parent of the Company
Currency: RMB Yuan
Shareholding
Registered Registered Voting power
Entity name Business nature percentage
location capital (RMB) percentage (%)
(%)
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
2、Subsidiaries of the Company
Details of the subsidiaries of the Company are set out in note (IX) 1.
3、 Associates and joint ventures of the Company
Details of the associates and joint ventures of the Company are set out in note (IX) 2.
4、 Related transactions
（1）Provision and receipt of services
Receipt of service
Currency： RMB Yuan
Whether exceed the
Amount for the Approved transaction Amount for the
Related party Details of Transaction approved transaction
current period amount prior period
amount
Nanshan Group 1,445,770.77 3,050,000.00
Power supply service No 1,456,454.40
(Power Station)
Provision of service
Currency： RMB Yuan
Amount for the current
Related party Details of Transaction Amount for the prior period
period
CSE Maintenance service 65,641.98 2,612,203.11
Maintenance service, loading and 3,841.73 23,680.92
CPEC
unloading service
Nanshan Group Maintenance service 86,060.95 87,112.69
CDFC Maintenance service 13,629.85 12,709.41
Chixiao Project 162,065.92
Maintenance service
Company
Shenzhen Chiwan 57,434.00
Loading and unloading service,
Steamship
warehouse service
transportation
Oriental Logistics Loading and unloading service, 1,374,144.63
Company warehouse service
（2）Leases with related parties
Leases where a group entity is the lessor:
Currency：RMB Yuan
Lease income recognized Lease income recognized
Name of lessee Type of leased assets
in the current period in the prior period
Nanshan Group Office building 3,454,772.87 3,238,823.24
Nanshan Real Estate Company Office building 43,009.14 43,882.56
Chiwan Real Estate Company Warehouse 510,194.16 485,940.00
Chixiao Company Office building 234,178.40 240,852.90
67
CSE Office building, warehouse 2,053,494.34 2,395,052.28
CPEC Office building 167,535.54 371,614.48
CDFC Office building 578,956.55 704,813.55
Oriental Logistics Company Office building 181,562.40 66,830.40
Oriental Supply Chain 128,800.00
Office building
Company
Leases where a group entity is the lessee:
Currency: RMB Yuan
Lease payment recognized Lease payment recognized
Name of lessor Type of leased assets
in the current period in the prior period
Nanshan Group Site (Note 1) 1,134,368.82 1,134,368.82
Nanshan Group Site (Note 2) 28,709,851.32 13,921,230.06
Note 1: The leased land is located to the southeast of the intersection of Chiwan 2nd Road and 6th Road,
which Shenzhen Baowan has leased from Nanshan Group, the Company's parent company.
Note 2: The leased assets include two pieces of lands which the Company has leased from Nanshan Group:
one is to the east of Chiwan 1st Road, with the lease term from 1 September 2006 to 31 August 2026; the
other is the Chiwan east coast venue (phase I), with the lease term from 1 January 2012 to 14 July 2034.
（3）Guarantees with related parties
A group entity as the guaranteed party:
Currency：RMB Yuan
Whether execution of
Inception date of Expiration date of
Guarantor Guaranteed amount guarantee has been
guarantee guarantee
completed
Nanshan Group（Note 1） 570,000,000.00 17/12/2012 17/12/2019 No
Nanshan Group（Note 1） 400,000,000.00 09/03/2012 09/03/2017 Yes
Nanshan Group（Note 2） 200,000,000.00 31/03/2012 30/03/2029 No
Nanshan Group（Note 3） 120,000,000.00 29/11/2012 28/11/2029 No
Nanshan Group（Note 4） 15,670,958.25 17/12/2014 16/12/2029 No
Nanshan Group（Note 5） 45,280,000.00 28/06/2016 37/03/2029 No
Nanshan Group（Note 6） 24,070,715.56 22/04/2014 21/04/2029 No
Nanshan Group（Note 7） 18,408,783.06 29/05/2014 28/05/2019 No
Nanshan Group（Note 8） 181,120,000.00 24/01/2017 23/01/2019 No
Note 1: Guarantee provided by Nanshan Group for corporate bond and medium term note. See note (V) 30 for details.
Note 2: Pursuant to the long-term borrowings contract, the loan withdrawal is expired, and the Company can no longer
use the residual facility. Nanshan Group only provides guarantee for the closing balance of the loan within the
guaranteed term. As at 30 Jun 2017, the closing balance of the aforesaid guaranteed loan is RMB 126,019,651.68.
Note 3: Pursuant to the long-term borrowings contract, the loan withdrawal is expired, and the Company can no longer
use the residual facility. Nanshan Group only provides guarantee for the closing balance of the loan within the
guaranteed term. As at 30 Jun 2017, the closing balance of the aforesaid guaranteed loan is RMB 52,804,650.36.
Note 4: Pursuant to the long-term borrowings contract, Wuhan Baowan can apply for loans within the scope of
guaranteed amount and guaranteed term. Nanshan Group and the Company has provide guarantee for the borrowings by
22.64% and 77.36% of the amount respectively. As at 30 Jun 2017, the closing balance of the aforesaid guaranteed loan
is RMB 69,218,013.48, which Nanshan Group and the Company guarantee RMB 15,670,958.25 and RMB
53,547,055.23 by 22.64% and 77.36% respectively.
Note 5: Pursuant to the short-term borrowings contract, the Company has provided a maximum of RMB
200,000,000.00 irrevocable guarantee with joint-liability for Baowan Holdings, whereas Nanshan Group has
provided a counter-guarantee against the Company by 22.64% of RMB 200,000,000.00.
68
Note 6: Pursuant to the long-term borrowings contract, Guangzhou Baowan can apply for loans within the
scope of guaranteed amount and guaranteed term. Nanshan Group and the Company has provide guarantee for
the borrowings by 22.64% and 77.36% of the amount respectively. As at 30 Jun 2017, the closing balance of
the aforesaid guaranteed loan is RMB 106,319,415.02, which Nanshan Group and the Company guarantee
RMB 24,070,715.56 and RMB 82,248,699.46 by 22.64% and 77.36% respectively.
Note 7: Pursuant to the long-term borrowings contract, Nanjing Baowan can apply for loans within the scope
of guaranteed amount and guaranteed term. Nanshan Group and the Company has provide guarantee for the
borrowings by 22.64% and 77.36% of the amount respectively. As at 30 Jun 2017, the closing balance of the
aforesaid guaranteed loan is RMB 81,310,879.23, which Nanshan Group and the Company guarantee RMB
18,408,783.06 and RMB 62,902,096.17 by 22.64% and 77.36% respectively.
Note 8: Pursuant to the short-term borrowings contract, the Company has provided a maximum of RMB
800,000,000.00 irrevocable guarantee with joint-liability for Baowan Holdings, whereas Nanshan Group has
provided a counter-guarantee against the Company by 22.64%. As at 30 Jun 2017, the closing balance of the
aforesaid guaranteed loan is RMB 594,000,000.00, which Nanshan Group and the Company guarantee RMB
181,120,000.00 and RMB 412,880,000.00 by 22.64% and 77.36% respectively.
69
（4）Money lending between related parties
Currency: RMB Yuan
Related parties Amounts Starting date Maturity date Note
Borrowing
Nanshan Group 200,000,000.00 06 March 2017 06 March 2022
Nanshan Group 240,000,000.00 11 November 2016 31 October 2019
Nanshan Group 220,000,000.00 13 April 2017 13 April 2020
Nanshan Group 50,000,000.00 08 November 2016 08 November 2019
Nanshan Group 40,000,000.00 27 June 2017 27 June 2022
Nanshan Group 50,000,000.00 27 June 2017 27 June 2022
Nanshan Group 207,000,000.00 02 March 2017 02 March 2020
Nanshan Group 87,000,000.00 02 March 2017 02 March 2020
CDFC 207,900,000.00 27 May 2016 27 May 2026
CDFC 100,000,000.00 31 March 2016 30 March 2019
CDFC 100,000,000.00 29 December 2016 29 December 2019
CDFC 94,500,000.00 07 November 2016 07 November 2026
CDFC 69,000,000.00 04 August 2016 04 August 2026
CDFC 63,455,100.00 08 December 2016 08 December 2019
CDFC 53,000.000.00 17 October 2016 17 October 2026
CDFC 34,000,000.00 01 August 2016 01 August 2019
Lending
CDFC -500,000.00 04 August 2016 04 August 2026
CDFC -1,000,000.00 17 October 2016 17 October 2026
CDFC -1,000,000.00 27 May 2016 27 May 2026
CDFC -1,000,000.00 08 December 2016 08 December 2019
CDFC -1,000,000.00 01 August 2016 01 August 2019
CDFC -500,000.00 07 November 2016 07 November 2026
Nanshan Group 294,000,000.00 25 January 2016 25 January 2017
Nanshan Group 50,000,000.00 15 August 2016 15 August 2017
5、Amounts due from / to related parties
（1）Amounts due from related parties
Currency: RMB Yuan
Closing balance Opening balance
Item Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Accounts receivable Nanshan Group 79,710.74 494.78 76,616.55 766.17
Chixiao Engineering 83,722.44 524.95
Accounts receivable
Company
Accounts receivable Chiwan Real Estate 82,595.70 517.88 82,595.70 825.96
Accounts receivable CDFC 103,702.62 650.22
Accounts receivable CSE 1,120,603.02 7,026.26 268,743.22 2,687.43
Accounts receivable Nanshan Real Estate 7,526.60 47.19
Accounts receivable CPEC 427,037.42 4,270.37 318,036.50 3,180.37
Other receivable Mingjiang 127,065,964.44 130,843,804.90
international
Other receivable Tianjin Baowan 104,045,923.86
Other receivable Langfang Baowan 91,453,113.76
Other receivable Guangzhou Baowan 73,806,105.00
70
Other receivable Longquan Baowan 53,235,516.43 56,124,406.58
Other receivable Chengdu Oil and 98,026.00 1,110,383.33
Gas base
Other receivable CSE 27,336.60 273.36 27,336.60 273.37
Other receivable Baowan Holding 21,989.05 116,098.68
Other receivable Jiaxing Investment 15,333,000.00 15,333,000.00
Other receivable Nanshan Group 2,750.00 27.50 2,750.00 27.50
（2）Amounts due to related parties
Currency: RMB Yuan
Item Related party Closing balance Opening balance
Accounts payable Nanshan Group 12,630,080.43 7,286,492.59
Accounts payable Chixiao Engineering Company 93,258.66 93,258.66
Accounts payable CSE 16,554.40 16,554.40
Accounts payable Chixiao Construction Company 9,740.00 9,740.00
Accounts payable Nanshan Group 358,391.65 570,633.32
Accounts payable CDFC 888,845.72
Other payables Nanshan Hong Kong 21,651,668.80 21,655,761.67
Other payables Nanshan Group 16,942,647.35 13,598,928.74
Other payables Chixiao Project Company 878,261.27 8,718,573.62
Other payables Chixiao Construction Company 446,736.04 4,840,413.70
Other payables CSE 255,726.00
Other payables CPEC 204,224.04
Other payables Oriental Logistics Company 216,171.00 179,375.00
Other payables Chiwan Real Estate 62,059.90
Other payables Chixiao Company 35,790.30 35,790.30
Non-current liabilities within 210,000,000.00 210,000,000.00
Nanshan Hong Kong
one year
Non-current liabilities within 785,836.56 785,836.56
CSE
one year
Other current liabilities Nanshan Group 564,000,000.00
Other non-current liabilities Nanshan Group 1,094,000,000.00 490,000,000.00
Other non-current liabilities Nanshan Hong Kong 6,000,000.00 6,000,000.00
Other non-current liabilities CSE 3,093,362.46 3,879,199.02
6、Amounts deposited in related parties
Cash and bank balances deposited in related parties
Currency: RMB Yuan
Item Related party Closing balance Opening balance
Cash and bank balances CDFC 89,424,188.09 177,270,206.74
71
XI. COMMITMENTS AND CONTINGENCY
1. Significant commitments
(1) Capital commitments
Currency: RMB Yuan
Closing balance Opening balance
Capital commitments that have been entered
into but have not been recognized in the
financial statements:
- Commitment for acquisition and 297,349,050.63 297,349,050.63
construction of long-term assets
(2) Operating lease commitments
At the balance sheet date, the Group had the following commitments in respect of non-cancellable operating leases:
Closing balance Opening balance
Minimum lease payments under
non-cancellable operating leases:
1st year subsequent to the balance sheet date 16,559,149.07 33,118,298.13
2nd year subsequent to the balance sheet date 39,388,509.13 39,388,509.13
3rd year subsequent to the balance sheet date 38,814,361.08 38,814,361.08
Subsequent periods 449,937,149.06 449,937,149.06
Total 544,699,168.34 561,258,317.40
2. Significant commitments
There is no significant contingency needed to be disclosed for the Group.
XII. TO KEY ITEMS IN THE COMPANY'S FINANCIAL
STATEMENTS
1、Accounts Receivable
（1）Disclosure of accounts receivable by categories:
Currency：RMB Yuan
Closing balance Opening balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Item
Proportio Proportion Net Book Value Proportio Proportion Net Book Value
Amount Amount Amount Amount
n (%) (%) n (%) (%)
Other receivables that are
individually significant and
provided for bad debt
individually
Accounts receivables for
which bad debt provision has
35,731,482. 100.00 224,038. 0.63% 35,507,444. 22,403,886 100.00 224,038.8 1.00% 22,179,847.
been assessed by portfolios of 96 % 86 10 .44 % 6 58
credit risk characteristics
Other receivables that are not
individually significant and
provided for bad debt
individually
Total
35,731,482. 100.00 224,038. 0.63% 35,507,444. 22,403,886 100.00 224,038.8 1.00% 22,179,847.
96 % 86 10 .44 % 6 58
Accounts receivable that are significant in amount individually and provided for bad debt individually
□Applicable √Not Applicable
In portfolio, accurring bad debt provision accounting to aging analysis of accounts receivable:
□Applicable √Not Applicable
In portfolios ，accruing bad debt provision according to the percentage-of-receivables approach：
√ Applicable □ Not Applicable
Currency：RMB Yuan
72
Closing balance
Name of the portfolio
Carrying amount Bad debt provision Proportion of provision (%)
Accruing bad debt provision 35,731,482.96 224,038.86 0.63%
according to the
percentage-of-receivables
approach
Total 35,731,482.96 224,038.86 0.63%
（2）Provision made and reversal of Bad debt
0 f provision has been reversed.
（3）Top five enterprises of accounts receivables
Currency：RMB Yuan
Name of entity Amount Proportion (%) Bad debt provision
Client 2 4,582,562.71 12.83% 72,270.01
Client 10 2,805,883.88 7.85% 11,702.24
Client 11 2,300,000.00 6.44%
Client 12 1,840,604.69 5.15% 5,259.46
Client 13 1,833,395.94 5.13% 13,240.67
Total 13,362,447.22 37.40% 102,490.38
2、Other Receivables
（1）Disclosure of other receivables by categories:
Currency: RMB Yuan
Closing balance Opening balance
Item Carrying amount Bad debt provision Net Book Carrying amount Bad debt provision
Proportion Proportio Proportio Proportio Net Book Value
Amount
(%)
Amount
n (%)
Value Amount
n (%)
Amount
n (%)
Other receivables for which 181,247,494. 99.63% 0.00 181,247,494 457,636,342 99.85 0.00% 457,636,342.
bad debt provision has been
assessed by portfolios of 26 .26 .31 % 31
credit risk characteristics
Other receivable that are not 680,788.88 0.37% 6,807.89 1.00% 673,980.99 680,788.88 0.15% 6,807.89 1.00% 673,980.99
individually significant but
for which bad debt provision
has been assessed
individually
Total
181,928,283. 6,807.89 181,921,475 458,317,131 6,807.89 458,310,323.
14 .25 .19 30
Other receivables that are significant in amount individually and provided for bad debt individually
□Applicable √Not Applicable
In portfolio, accurring bad debt provision accounting to aging analysis of accounts receivable:
□Applicable √Not Applicable
In portfolios ，accruing bad debt provision according to the percentage-of-receivables approach：
√ Applicable □ Not Applicable
Currency：RMB Yuan
Closing Balance
Name of the portfolio
Carrying amount Bad debt provision Proportion of provision (%)
Accruing bad debt provision according to the 181,928,283.14 6,807.89 0.00%
percentage-of-receivables approach
Total 181,928,283.14 6,807.89 0.00%
In portfolio, accruing bad debt provision accounting to other approaches
□Applicable √Not Applicable
（2）Provision made and reversal of Bad debt
No provision has been reversed.
73
（3）Disclosure of other receivables by nature:
Currency：RMB Yuan
Nature Closing Balance Opening Balance
Deposits 26,174.80 26,174.80
Petty cash 251,357.61 76,087.60
Amount due from related parties 180,474,301.58 457,499,836.11
Others 1,176,449.15 715,032.68
Total 181,928,283.14 458,317,131.19
（4）Top five entities with the largest balances of other receivables
Currency：RMB Yuan
Proportion of the
Bad debt provision
Relationship with amount to the total
Name of entity Amount Aging for the closing
the Company accounts receivable
balance
(%)
Mingjiang Blogis Related party 127,065,964.44 1-2year 69.84%
Longquan Blogis Related party 53,235,516.43 1-2year 29.26%
Chengdu Oil and Gas Related party 98,026.00 Within 3 months 0.05%
base
Client 14 Non-related party 92,413.91 3-6 months 0.05%
client 15 Non-related party 77,153.00 1-2year 0.04%
Total -- 180,569,073.78 -- 99.25% 0.00
3、Long-term Equity Investment
Currency：RMB Yuan
Closing Balance Opening Balance
Item Bad debt Bad debt
Carrying amount Net book value Carrying amount Net book value
provision provision
Subsidiaries 2,664,431,824.30 2,664,431,824.30 2,633,012,324.30 2,633,012,324.30
Associates 619,222,760.45 619,222,760.45 602,194,915.06 602,194,915.06
Total 3,283,654,584.75 3,283,654,584.75 3,235,207,239.36 3,235,207,239.36
（1）Long-term Equity Investment to subsidiaries:
Currency：RMB Yuan
Provision for bad Closing balance
Investee Opening Balance Increase in Decrease in Closing Balance debts of the on bad debts
investment investment current period provision
Blogis Holdings 2,532,451,987.58 2,532,451,987.58
Shenzhen Blogis 41,273,772.13 41,273,772.13
Chengdu Oil &Gas 59,286,564.59 31,419,500.00 90,706,064.59
Base
Total 2,633,012,324.30 31,419,500.00 2,664,431,824.30
（2）Long-term Equity Investment to associates:
Currency：RMB Yuan
Changes in the current period
Closing
Increase Investment Adjustment on Announcing
Opening Decrease Other Closing balance
Investee in income other cash
balance in equity Provision Others balance on
investm recognized comprehensive dividends or
investment changes provision
ent by equity income profits
74
method
I、Joint Venture
II、Associates
CSE 480,795,224.35 9,783,506.15 490,578,730.50
CFDC 120,662,133.18 7,600,298.03 128,262,431.21
CPEC 737,557.53 -355,958.79 381,598.74
Subtotal 602,194,915.06 17,027,845.39 619,222,760.45
Total 602,194,915.06 17,027,845.39 619,222,760.45
4、Operating income and operating costs
（1）Operating income and operating costs
Currency: RMB Yuan
Amount recognized in the current period Amount recognized in the prior period
Item Operating income Operating costs Operating income Operating costs
Principal operating activities 70,879,580.33 41,945,992.95 68,844,361.06 45,529,220.40
Other operating activities
Total 70,879,580.33 41,945,992.95 68,844,361.06 45,529,220.40
5、Investment income
Currency: RMB Yuan
Amount recognized in the Amount recognized in
Item
current period the prior period
Income from long-term equity investments under equity method 17,027,845.39 13,758,166.75
Income from bank financing products 1,204,227.53
Total 17,027,845.39 14,962,394.28
XIII. SUPPLEMENTARY INFORMATION
1、Breakdown of non-recurring profit or loss
Currency: RMB Yuan
Item Amount Remark
Profit or loss on disposal of non-current 31,154.25
assets
Government grants recognized as profit or 417,807.94
loss for the current period(other than grants
which are closely related to the Company's
business and are either in fixed amounts or
determined under quantitative methods in
accordance with the national standard)
Other non-operating income or expenses 1,981,376.85
other than the above
Less: Tax effects 569,454.29
Effects attributable to minority 378,579.50
interests (after tax)
Total 1,482,305.25 --
2、Return on equity (ROE) and earnings per share ("EPS")
Weighted average return on EPS
Profit for the reporting period net assets (%) Basic EPS Diluted EPS
Net profit attributable to ordinary shareholders of the Company 0.62% 0.05 0.05
Net profit after deduction of non-recurring profits or losses 0.54% 0.04 0.04
attributable to ordinary shareholders of the Company
75
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