StockCode:000022/200022 StockAbbr.:ChiwanWharfA/ChiwanWharfB PublicAnnouncementNo.:2017-006 SHENZHENCHIWANWHARFHOLDINGSLIMITED THEABSTRACTOFTHE2016ANNUALREPORT I.Importantinformation ThisAbstractisbasedonthefulltextoftheAnnualReport.Inorderforafullunderstandingoftheoperating results,financialconditionandfuturedevelopmentplanningoftheCompany,investorsarekindlyremindedto readthefulltextcarefullyonthemediadesignatedbytheChinaSecuritiesRegulatoryCommission. ThisAbstractispreparedinbothChineseandEnglish.Shouldtherebeanydiscrepancybetweenthetwoversions, theChineseversionshallprevail. Non-standardauditor’sopinion □Applicable√Inapplicable Preliminaryplanforprofitdistributiontothecommonshareholdersorturningthecapitalreserveintotheshare capitalforthereportingperiod,whichhasbeenreviewedandapprovedattheboardmeeting √Applicable□Inapplicable Sharecapitalincreasefromthecapitalreserve □Yes√No Preliminaryplanforprofitdistributiontothecommonshareholdersforthereportingperiodwhichhasbeen reviewedandapprovedattheboardmeeting:Basedonthetotalsharesof644,763,730,acashdividendof RMB4.96(taxincluded)willbedistributedtoalltheshareholdersforevery10sharesthattheyhold.Nobonus shareswillbegrantedandnocapitalreservewillbeturnedintosharecapital. Preliminaryplanforprofitdistributiontothepreferenceshareholdersforthereportingperiodwhichhasbeen reviewedandapprovedattheboardmeeting □Applicable√Inapplicable II.Companyprofile 1.Stockprofile Stockabbr. ChiwanWharfA,ChiwanWharfB Stockcode 000022,200022 Stockexchange ShenzhenStockExchange Contactinformation CompanySecretary SecuritiesRepresentative Name WangYongli HuJingjing&ChenDan Officeaddress 8/F, Chiwan Petroleum Building, Zhaoshang Street, Nanshan District, Shenzhen,PRC Fax +86 75526684117 +86 75526684117 Tel. +86 75526694222 +86 75526694222 E-mailaddress cwh@szcwh.com cwh@szcwh.com 2.Briefintroductiontothemainbusinessorproductsinthereportingperiod TheCompanyisprincipallyengagedinthehandling,warehousingandtransportationofcontainersandbulk cargoes,aswellastheprovisionofrelatedservices.TheCompanyhas6containerberthsand7bulkcargoberths inChiwanWharf(Shenzhen), 3containerberthsin MawanWharf(Shenzhen)and 5bulkcargoberthsin MachongWharf(Dongguan).TheCompanyalsohasaninvestmentinLaizhouWharfinShandongProvince. Inthereportingperiod,theglobaleconomywasindeepchange,internationaltraderemainedsluggishandslow growthbecameanordinarystatefortheportindustry,urgingfastertransformationbyupgradingandintegrationof portresources.Asaregionalhubforcontainerandbulkcargocarriers,theCompanyenjoyedgrowingbusiness resultsaswellasastableandimprovingmarketposition. 3.Accountingandfinancialhighlights (1)Accountingandfinancialhighlightsforthepastthreeyears DoestheCompanyadjustretrospectivelyorrestatetheaccountingdataofpreviousyearsduetochangesinthe accountingpolicyorcorrectionsofaccountingerrors □Yes√No Unit:RMBYuan Increase/decrease Item 2016 2015 ofcurrentyearover 2014 lastyear Operatingrevenues 1,905,107,140.42 1,872,608,596.16 1.74% 1,804,766,176.31 Net profits attributable to 532,376,492.97 527,751,492.42 0.88% 417,594,271.33 shareholdersoftheparent Net profits attributable to shareholders of the parent 530,615,980.15 528,043,530.88 0.49% 417,628,589.12 beforeextraordinarygainsand lossesNetcashflowsfromoperating 827,754,904.11 977,850,737.45 -15.35% 818,315,147.74activitiesBasicEPS(RMBYuan/share) 0.826 0.819 0.85% 0.648Diluted EPS (RMB 0.826 0.819 0.85% 0.648Yuan/share)WeightedaverageROE(%) 11.64% 12.34% -0.70% 10.36% Increase/decrease Asat31Dec. Asat31Dec.2016 Asat31Dec.2015 ofcurrentyear-end 2014 thanlastyear-endTotalassets 6,620,476,709.79 6,913,772,876.99 -4.24% 6,935,824,199.68Net assets attributable to 4,709,815,552.89 4,439,600,537.05 6.09% 4,115,298,831.59shareholdersoftheCompany(2)Accountinghighlightsbyquarter Unit:RMBYuan Item Q1 Q2 Q3 Q4Operatingrevenues 441,414,712.95 463,394,939.29 513,538,393.69 486,759,094.49Net profits attributable to 121,221,004.55 145,314,502.42 160,704,737.43 105,136,248.57shareholdersoftheparentNet profits attributable toshareholders of the parent before 120,104,236.05 144,612,148.26 160,374,471.28 105,525,124.56extraordinarygainsandlossesNet cash flows from operating 101,594,145.81 267,063,097.99 204,666,194.32 254,431,465.99activitiesAnymaterialdifferencesbetweenthefinancialindicatorsaboveortheirsummationsandthosewhichhavebeen disclosedinquarterlyorsemi-annualreports □Yes√No 4.Sharecapitalandshareholders (1)Numbersofthecommonshareholdersandthepreferenceshareholderswithresumedvotingrightsas wellastheshareholdingsofthetop10shareholders Unit:share Total number of 35,947,including Total number of33,345,including Total number of preference Total number25,640 common 22,841 preference shareholders with of commonA-shareholdersandshareholders atA-shareholders shareholders with 0resumed voting 0 shareholdersat10,307 perviousmonth-endand10,504 resumed voting rights at pervious period-end B-shareholders of this Report’sB-shareholders rights at month-end of this disclosure period-end(ifany) Report’s disclosure (ifany) Shareholdingsofshareholderswithastakeover5% Natureof Shareholding Totalshares +/-in Numberof Numberof Pledgedor Nameofshareholder shareholder percentage held reporting restrictedshares non-restricted frozenshares atperiod-end period held sharesheld CHINA NANSHANState-owned DEVELOPMENT corporation 32.52% 209,687,067 0 0 209,687,067 0 (GROUP)INC. SHENZHEN MALAICommon STORAGECO.,LTD.domestic 25.00% 161,190,933 0 0 161,190,933 0 corporationKEEN FIELDForeignENTERPRISES corporation 8.58% 55,314,208 0 0 55,314,208 UnknownLIMITEDCMBLSAREFTIFTEMPLETON Foreign 7.43% 47,914,954 0 0 47,914,954 UnknownASIANGRWFDGTIcorporation5496ICBC－LION CommonVALUEGROWTH domestic 0.42% 2,698,775 2,698,775 0 2,698,775 UnknownSTOCKFUND corporationBBHA/CVANGUARD ForeignEMERGING corporation 0.41% 2,617,518 0 0 2,617,518 UnknownMARKETSSTOCKINDEXFUNDSHENWANHONGYUAN Foreign 0.39% 2,511,586 2,511,586 0 2,511,586 UnknownSECURITIES(HK) corporationLIMITEDCHINAMERCHANTS State-owned 0.38% 2,451,059 515,483 0 2,451,059 UnknownSECURITIES (HK)corporationCO.,LTD.TEMPLETON ForeignASIANGROWTH corporation 0.29% 1,885,170 -772,682 0 1,885,170 UnknownFUNDNORGESBANK Foreign 0.26% 1,660,562 579,100 0 1,660,562 Unknowncorporation Shareholdingsoftop10non-restrictedshareholders Nameofshareholder Numberofnon-restrictedsharesheld Typeofshares atperiod-end Type Number CHINANANSHANDEVELOPMENT(GROUP)INC. 209,687,067Ashare 209,687,067 SHENZHENMALAISTORAGECO.,LTD. 161,190,933Ashare 161,190,933 KEENFIELDENTERPRISESLIMITED 55,314,208Bshare 55,314,208 CMBLSAREFTIFTEMPLETONASIANGRWFDGTI5496 47,914,954Bshare 47,914,954 ICBC－LIONVALUEGROWTHSTOCKFUND 2,698,775Ashare 2,698,775 BBHA/CVANGUARDEMERGINGMARKETSSTOCK 2,617,518Bshare 2,617,518 INDEXFUND SHENWANHONGYUANSECURITIES(HK)LIMITED 2,511,586Bshare 2,511,586 CHINAMERCHANTSSECURITIES(HK)CO.,LTD. 2,451,059Bshare 2,451,059 TEMPLETONASIANGROWTHFUND 1,885,170Bshare 1,885,170 NORGESBANK 1,660,562Bshare 1,660,562 ChinaMerchantsPortHoldingsCompanyLimited (“CMPort”)isa Related or acting-in-concert parties among the top tenshareholderofChinaNanshanDevelopment(Group)Inc.,andShenzhen non-restrictedlytradableshareholdersandbetweenthetoptenMalaiStorageCo.,Ltd.andKeenFieldEnterprisesLimitedareboth non-restrictedly tradable share holders and the top tenwholly-fundedsubsidiariesofCMPort.Otherthanthat,theCompany shareholders doesnotknowwhethertheothernon-restrictedshareholdersarerelated partiesornot. Toptencommonshareholders conductingsecuritiesmarginN/A trading(ifany) (2)Numberofthepreferenceshareholdersandtheshareholdingsofthetop10ofthem □Applicable√Inapplicable Nopreferenceshareholdersinthereportingperiod (3)RelationshipbetweentheCompanyanditsactualcontrollerintheformofdiagram State-OwnedAssetsSupervisionandAdministrationCommissionoftheStateCouncil 100% ChinaMerchantsGroup 54.78% ChinaMerchantsPortHoldings Entrusted to CompanyLimited manage32.52% shares held 100% 100% 37.02% by CND Group MalaiStorage KeenFieldEnterprises CNDGroup 25% 8.58% 32.52% 14.58% PublicShareA ShenzhenChiwanWharfHoldingsLimited 19.32% PublicShareB5.Corporatebonds □Applicable√Inapplicable III.Performancediscussionandanalysis InvestorsarekindlyremindedtoreadthefulltextofthisReportcarefullyandpayspecialattentiontothe followingriskfactors: Anyforward-lookingstatementsuchasthoseinvolvingfutureplansordevelopmentstrategiesinthisReportshall notbeconsideredasvirtualpromisesoftheCompanytoinvestors.Andinvestorsarekindlyremindedtopay attentiontopossiblerisks.SecuritiesTimes,TaKungPao(HK)andwww.cninfo.com.cnhavebeendesignatedby theCompanyforinformationdisclosure.AndallinformationabouttheCompanyshallbesubjecttowhat’s disclosedontheaforesaidmedia.Investorsarekindlyremindedtopayattentiontopossiblerisks. IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries No.1.BusinessreviewforthereportingperiodIn2016,theglobaleconomyremainedindeepchangewhichvariedmarkedlyamongdifferentregions.Profoundchangesalsohappenedwithtraderules,productionmodes,industriallayout,internationaldivisionoflabor,currencysystems,etc.Chinasteadilypushedforwarditssupply-sidestructuralreformandtransformationanddeepeneditspilotfreetradezonereform.Itseconomicgrowthfurthersloweddownto6.7%,withthetotalimportandexportvaluedownby0.9%fromlastyear.Withcontinuouslysluggishglobalshipping,thedomesticportindustryalsogrewataslowpace.Thecountry’scoastalportsabovethedesignatedsizeregisteredacargothroughputof8.08billionmetrictons,representing3.0%growthfromlastyear,andacontainerthroughputof190millionTEU,up3.4%fromtheyearearlier.Undersuchcircumstances,mainproductionandoperationindicatorsoftheCompanyforthereportingperiodallregisteredincrease.Tobespecific,theCompanyachievedacargothroughputof67.8millionmetrictons,ayear-on-yearincreaseof1.8%,whichgeneratedoperatingrevenuesofRMB1.91billion,up1.7%fromlastyear;totalprofitsofRMB0.77billion,up5.9%onayear-on-yearbasis;andnetprofitsattributabletotheCompany(excludingsubsidiaries)ofRMB0.53billion,representinga0.9%growthfromtheyearearlier.(1)ContainerhandlingbusinessGrowth in theglobal container capacity significantly slowed down,but overcapacitywasn’t substantivelyimproved.Withlowerearningsforshippingenterprises,thebankruptofHanjinShipping,the7thlargestshippingcompanyintheworldshockedtheshippingindustry.Theshippingallianceswereonthevergeofareshuffleduetoseriesofmergingandreorganizationeventsintheindustry.Inthereportingperiod,containerthroughputofmainportsinSouthChinadeclinedby1.2%yearonyear,ofwhichthedataofShenzhenportdeclinedby1.0%.Westrengthenedbusinessexpansion,closelyfolloweduptherouteadjustmentcausedbythealliancereshuffle,energeticallyexploredqualifiedroutes,leadingtogrowthinbothlocalandtransitcontainerhandling.Wehandled5.035millionTEUofcontainers,up5.8%onayear-on-yearbasis,accountingfor21%oftheShenzhenportmarket,1percentagepointhigherthanthesameperiodoflastyear.(2)BulkcargohandlingbusinessDuetothegovernment’sstructuralreformofthesupplyfront,aswellasthemarketdemand,China’simportsofgrainandfertilizerbothdecreasedsharply.Weadoptedabusinessstrategyofworkingonbothdomesticandforeigntrade.Asaresult,theconsiderablegrowthinthedomesticgrainandfeedstuffthroughputmadeupforthedropintheforeigncounterpart,andourtotalgrainandfeedstuffthroughputisstillataleadingpositioninthePearlRiverDelta.Meanwhile,despiteaweakdemand,wearestillaleaderintermsoffertilizerthroughput,withthecompoundfertilizerimportshandledaccountingforaround50%ofChina’smarket.Atthesametime,westrengthenedbusinessexpansion.Breakthroughshavebeenmadeinnewbusinessandthecomprehensivelogisticsservicesbasedontheportshavecontinuedtodevelop,makingclientsmoredependentonus.Inthereportingperiod,weachievedabulkcargothroughputof18.822milliontons,down2.4%fromtheyearearlier.(3)Supportingservicesandinvestmentmanagement Oursupportingservicesoftowtruck,tugboat,customsclearance,bargeandthelikewentonsmoothly,and gainedgoods.Meanwhile,ourmaininvesteessuchasChinaOverseasHarbourAffairs(Laizhou)Co.,Ltd.,and ChinaMerchantsHoldings(International)InformationTechnologyCo.,Ltd.achievedgreatlyimprovedbusiness results,producingmuchhigherreturnsonourinvestmentsfromayearearlier. BusinesshighlightsoftheCompanyforthepastthreeyearsaresetoutasfollows: Mainbusinessindicator 2016 2015 2014 Totalthroughput(thousandtons) 67,800 66,618 63,002 Amongwhich: 5,035 4,760 4,958 Containerthroughput(thousandTEU) Bulkcargothroughput(thousandtons) 18,822 19,283 15,139 Hourschargedfortowtrucks(thousandhours) 1,165 1,129 1,170 Hourschargedfortugboats(hour) 32,530 34,098 28,642 Inthereportingperiod,wecontinuedtopushforwardleanmanagementandinnovationwork,andemphasizedon improvingqualityandefficiency.Weadaptedtothemanagementrequirementsinnewsituationsbysortingand optimizingmanagementprocess,aswellasrevisingandperfectingsystems.Wecombinedtheorytrainingwith work practice, and strengthened the guiding function of data analysis. Through making use of interest technologies,wecarriedforwardthefusionofproductionnetwork,andtheCompany’sinformationization.We encouragedtechniqueandprocessreform,andnewtechnologyapplication,focusedonsolvingandimproving issuesinthefrontlineofproduction,andaccomplishedmultipleprojectsoftechnicalinnovation.Wecombined themainwharfbusinesswithsupportingbusinesses,arrangedtheparticipationinmultiplelogisticslinks,explored andextendedthelogisticschainserviceinports.Wedevelopedspecialmanagementandcontrolonkeycosts, reachedtheannualtargetonmanagementandcontrol,andrealizedtheincreaseofoperatingprofits.Wealso expandedfinancingchannelsforabetterdebtstructureandreducedtheloanstoavoidexchangeraterisk,which helpedcutdownourfinancecostsinasignificantway. 2.OutlookoftheCompany’sfuturedevelopment (1)Outlookandtrendsoftheindustry 2017isexpectedtocontinuetoseeacomplicatedandserioussituationintheglobaleconomyaswellasaslow developmentpaceinglobalshipping,whichwouldn’tbechangedinashortterm.Theeconomyoftraditional industrywillbeinthepassageofreducingexcessproductioncapacityinalongterm.Thefastgrowthofport throughputsloweddowntointermediate,evenunit-digitspeed,representingasituationwherethenetgrowthof throughputandannualaveragegrowthspeedbothdeclined.ThedevelopmentofChina’sportindustrywill transferfromobtainingbenefitsbyrelyingonthebonusbroughtbyeconomydevelopmenttoobtainingbenefits byimprovingqualityandefficiency,aswellasbuildinghigh-endvaluechainbyitself.Theexcessproduction capacitywillintensifyregionalcompetitions,makingmutualbenefitandwin-winresultcausedbyleveraging resourceintegrationbecomesthegeneraltrend. Intermsofcontainerhandling,containerthroughputinthePearlRiverDeltaisexpectedtoremainstable.Larger shipsandshippingallianceshavemadeclientsmorecentralized.Theadjustmentofregionalindustrylayout,as wellastherapiddevelopmentofcross-borderE-commerceputforwardhigherrequirementstocontainerports. Theriskofbusinessfluctuationwillaggravate.TheindustrypositionandbusinessscaleoftheCompany,the regionalhubport,willkeepsteady. Asforbulkcargohandling,regionaldemandforgrainandfeedstuffkeepsgrowing,andthedemandforfertilizer keepsstable.Infuture,withtheimprovementofresourcecapabilityofbulkcargohandling,thedevelopmentof bondedandtransitbusinesses,andthecultivationofnewsupplyofgoodandnewbusinessforms,theoverall marketcompetitivenesswillcontinuouslygetenhanced.Throughputofourbulkcargohandlingbusinesswill expectedlykeepstablegrowing,constantlyoccupyingtheleadingpositioninregionalmarket. (2)Developmentstrategy Duringthe13thFive-YearPlanperiod,focusingonthestrategyvisionof“BuildingtheRegional1stLevel’sPort IntegratedServicer”,Withourstrategicstandardofdevelopmentbeing“BasedonMainBusinessofPortService, BeaLocalStandard;ExpandComprehensiveServiceforBusinessUpgrade”,westrivetobuildacompany featuringexcellentmanagement,greatefficiency,potentialforsustaineddevelopmentandtheabilitytocreate constantvalueforitsshareholders,employees,clientsandthesociety. Inthereportingperiod,weresearchedandformulatedtheimplementationschemesforourstrategicplanning.In future,wewillintensivelyfarmontheareaonthebasisofmainbusinesses,fullytakeadvantageoftheinternet toolstoexertourselvestodevelopportinvestmentandoperationbusiness,portintegrateddevelopmentbusiness, andportextendingservicebusiness.We’llputfortheffortonimprovingourabilityofleanmanagement,driving innovation,resourceintegration,organizationestablishment,aswellasriskmanagement. (3)Businessplansfor2017 Infaceofthecomplexandchangeablemarketin2017,wewilladheretotheguidelineof“Aimingatdevelopment throughRealPracticeandSolid Work,Creating 1stClassCompanyonthebasisofMainbusinesses”and vigorouslyrespondtochallengessoastoachievesoundgrowthinourbusinessresultsandprofits.Ourmain businessplansareasfollows: 1)Toknowwellaboutthemarketsituation,andensurebusinessgrowthinsize Inorderforasteadygrowthinourbusinessscale,wewillactivelydealwithchangesintheshippingmarketand industrytrends,keepup-and-comingcommercialstrategies,solidifyandincreaseourlocalmarketposition,as wellas continueto expand andextend integratedservices basedonthe mainportbusiness, and enhance customer’sstickiness 2)Tooptimizeresourceallocationandimproveresourceutilizationrate We’llpositivelycarryforwardthe270-meterbroadeninganddredgingprojectforTonggusearoute,improvethe hardwareconditionsforshipping,launchthetransformationofBerth5-6#,ChiwanPort,andkeeppropellingthe reformationofthestorageyardinports.TheBulkgrainwarehousesPhaseII,MachongPortwillbeaccomplished andput into operation, andthe constructionoftheBulk grainwarehouses Phase III.,together withother supportingfacilities,willbeaccelerated.We’llreinforcetheoptimizationandutilizationoftheexistingstockof resources,andimprovetheresourcesutilizationinfullaspects. 3)Toenhanceleanmanagementandinnovationtoimprovequalityandefficiencyforinternalmanagement Leanmanagementandinnovationwillbepushedforwardintheformofprojects.We’llimpelandimplementthe informatization construction plan to improve the port managementefficiency. We’ll strength establishing institutionsandthepersonnel,perfectriskmanagementandcontrolsystem,andensureourstandardoperation. We’llspecially carryforward managementand controlonkey costs in multipledimensions, and execute long-actingtracking.We’llencouragetechnologytransformationandinnovationaimingatprovidingpractical productionsolutionstogiveexpressiontothevaluesofinnovation. 4)Tolookforinvestmentandcooperationopportunitiestopushforwardourleapingdevelopment Wewillkeeplookingforregionalopportunitiesforresourceintegrationandbusinessexpansion,andmakeuseof ourfinancingplatformandbrandadvantage,soastofurtherperfectandenlargeourbusinesslayoutandachieve businesssynergisticeffect.Andatthesametime,we’llpropelstrategiccooperationtolockinqualifiedcustomers, sothatourintegratedcompetitivenesscanbeimproved. (4)Capitalneedsandexpenditureplanfor2017 Toimplementourfuturedevelopmentstrategiesandachievethebusinessgoalswehaveset,acapitalexpenditure ofRMB537.60million isplanned for2017,ofwhichRMB407.70 millionwill beinvestedin wharfsand warehouses,RMB79.19millioninmechanicalequipmentandtechnicalimprovementprojects,RMB43.46million incomputerprojectsandRMB7.25millioninadministrationandother.Thesaidcapitalexpenditureswillbe mainlyfundedbycashinflowsfromoperatingactivitiesoftheCompanyandborrowingsfrominterbankmarkets andfinancialinstitutions. 3.Significantchangesinthemainbusinessinthereportingperiod □Yes√No 4.Productscontributingover10%ofthemainbusinessrevenueorprofit □Applicable√Inapplicable 5.Seasonalorperiodiccharacteristicsintheoperatingperformancethatneedspecialattention □Yes√No 6.SignificantYoYchangesintheoperatingrevenues,operatingcostsandnetprofitsattributabletothe commonshareholdersortheircomposition □Applicable√Inapplicable 7.Listingsuspensionortermination □Applicable√Inapplicable 8.Issuesrelatedtothefinancialreport (1)YoYchangesintheaccountingpolicy,accountingestimationandmeasurementmethods □Applicable√Inapplicable Nochanges (2)Retrospectiverestatementsduetocorrectionofsignificantaccountingerrorsinthereportingperiod □Applicable√Inapplicable Nosuchcases (3)YoYchangesintheconsolidationscope □Applicable√Inapplicable Nochanges ForandonbehalfoftheBoard ShiWei Chairman ShenzhenChiwanWharfHoldingsLimited Dated28March2017