Shenzhen Chiwan Petroleum Supply Base Co., Ltd.

Shenzhen Chiwan Petroleum Supply Base Co., Ltd. (Shenzhen Chiwan Petroleum Supply Base, 200053.SZ) is a historical company whose listing has been terminated; its core asset was Baowan Logistics. Its 2017 interim report showed that its logistics and warehousing (storage) business generated revenue of 289 million yuan, accounting for 81.1% of its total operating revenue. According to Cushman & Wakefield’s “China High-End Logistics Market 2015 Review”, Baowan Logistics held a 9% market share among China’s major logistics property developers in 2015, behind only GLP and Goodman. Fu Yuning once served as the company’s executive deputy general manager and later held posts including chairman of Chiwan Port and Shipping Co., Ltd. and general manager of China Nanshan Development (Group) Co., Ltd.

On January 24, 2018, Shenzhen New Nanshan Holding (002314.SZ) announced that its restructuring plan to absorb and merge Shenzhen Chiwan Petroleum Supply Base Co., Ltd. through a share swap by issuing A shares had been approved unconditionally by the Listed Company Mergers, Acquisitions and Restructuring Review Committee of the China Securities Regulatory Commission. The actual controller of both Shenzhen New Nanshan Holding and Shenzhen Chiwan Petroleum Supply Base was China Nanshan Development (Group) Co., Ltd. Shenzhen New Nanshan Holding said that after acquiring Shenzhen Chiwan Petroleum Supply Base, the company would take logistics property and its traditional property development business as the twin cores of its future development; in its view, combining the two businesses would create synergies: drawing on Shenzhen Chiwan Petroleum Supply Base’s scale, resources and brand influence in logistics, Shenzhen New Nanshan Holding’s ability to acquire land resources would be strengthened, and the logistics property and residential property industry chains would be connected.

Less than a week after the restructuring was approved, Shenzhen Chiwan Petroleum Supply Base issued its 2017 earnings forecast on January 29, 2018, projecting net profit attributable to shareholders of the listed company of between -70 million and -50 million yuan for 2017, compared with a profit of 1.92 million yuan in 2016, a marked decline. The office of the board secretary of Shenzhen Chiwan Petroleum Supply Base explained to a reporter from the Economic Observer that the large loss was mainly because the downturn in the oil industry had sharply reduced the operating profit of its associate company Chiwan Sembawang, while the logistics bases and logistics parks were in sound overall operating condition in 2017 with good returns.